Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 20, 2020 | Jun. 30, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 001-38101 | ||
Entity Registrant Name | WideOpenWest, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-0552948 | ||
Entity Address, Address Line One | 7887 East Belleview Avenue | ||
Entity Address, Address Line Two | SuiteĀ 1000 | ||
Entity Address, City or Town | Englewood | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80111 | ||
City Area Code | 720 | ||
Local Phone Number | 479-3500 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 177.4 | ||
Entity Common Stock, Shares Outstanding | 84,163,475 | ||
Entity Central Index Key | 0001701051 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 21 | $ 13.2 |
Accounts receivable-trade, net of allowance for doubtful accounts of $7.5 for each period | 65.8 | 66.2 |
Accounts receivable-other | 9.8 | 17.6 |
Prepaid expenses and other | 22.1 | 15.4 |
Total current assets | 118.7 | 112.4 |
Right-of-use lease assets-operating | 26.5 | |
Property, plant and equipment, net | 1,073.7 | 1,053.4 |
Franchise operating rights | 799.5 | 809.2 |
Goodwill | 408.8 | 408.8 |
Intangible assets subject to amortization, net | 2.9 | 3.6 |
Other noncurrent assets | 41.5 | 32.2 |
Total assets | 2,471.6 | 2,419.6 |
Current liabilities | ||
Accounts payable-trade | 47.1 | 42 |
Accrued interest | 2.7 | 4.6 |
Current portion of long-term lease liability-operating | 6.1 | |
Accrued liabilities and other | 95.6 | 93.2 |
Current portion of long-term debt and finance lease obligations | 30.9 | 24.1 |
Current portion of unearned service revenue | 45 | 60.2 |
Total current liabilities | 227.4 | 224.1 |
Long-term debt and finance lease obligations-less current portion and debt issuance costs | 2,259.5 | 2,271.4 |
Long-term lease liability-operating | 23.4 | |
Deferred income taxes, net | 192.5 | 192.9 |
Other noncurrent liabilities | 14.7 | 13 |
Total liabilities | 2,717.5 | 2,701.4 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, $0.01 par value, 100,000,000 shares authorized; 0 shares issued and outstanding | ||
Common stock, $0.01 par value, 700,000,000 shares authorized; 92,182,207 and 90,572,693 issued as of December 31, 2019 and December 31, 2018, respectively; 84,103,108 and 82,680,380 outstanding as of December 31, 2019 and December 31, 2018, respectively | 0.9 | 0.9 |
Additional paid-in capital | 322.8 | 312.7 |
Accumulated other comprehensive loss | (15.5) | (6.5) |
Accumulated deficit | (474.4) | (510.8) |
Treasury stock at cost, 8,079,099 and 7,892,313 shares as of December 31, 2019 and December 31, 2018, respectively | (79.7) | (78.1) |
Total stockholders' deficit | (245.9) | (281.8) |
Total liabilities and stockholders' deficit | $ 2,471.6 | $ 2,419.6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable-trade, allowance for doubtful accounts | $ 7.5 | $ 7.5 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding ( in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, shares issued (in shares) | 92,182,207 | 90,572,693 |
Common stock, shares outstanding ( in shares) | 84,103,108 | 82,680,380 |
Common shares held in treasury, (in shares) | 8,079,099 | 7,892,313 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Revenue | $ 1,145.8 | $ 1,153.8 | $ 1,188.1 |
Costs and expenses: | |||
Operating (excluding depreciation and amortization) | 577.5 | 619 | 626.5 |
Selling, general and administrative | 170.6 | 154.1 | 138.5 |
Depreciation and amortization | 206.2 | 186.9 | 198.1 |
Impairment losses on intangibles and goodwill | 9.7 | 216.3 | 147.4 |
Loss (gain) on sale of assets, net | 5.4 | (0.9) | (94.1) |
Management fee to related party | 1 | ||
Total costs and expenses | 969.4 | 1,175.4 | 1,017.4 |
Income (loss) from operations | 176.4 | (21.6) | 170.7 |
Other income (expense): | |||
Interest expense | (142.1) | (132.5) | (151.6) |
Gain on sale of Lawrence, Kansas system | 38.4 | ||
Loss on early extinguishment of debt | (32.1) | ||
Other income, net | 3.6 | 1.7 | 1.6 |
Income (loss) before provision for income tax | 37.9 | (152.4) | 27 |
Income tax (expense) benefit | (1.5) | 65.1 | 158.3 |
Net income (loss) | $ 36.4 | $ (87.3) | $ 185.3 |
Basic and diluted earnings (loss) per common share | |||
Basic (in dollars per share) | $ 0.45 | $ (1.07) | $ 2.35 |
Diluted (in dollars per share) | $ 0.45 | $ (1.07) | $ 2.35 |
Weighted-average common shares outstanding | |||
Basic (in shares) | 80,713,926 | 81,808,425 | 78,778,640 |
Diluted (in shares) | 81,189,162 | 81,808,425 | 78,915,946 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net income (loss) | $ 36.4 | $ (87.3) |
Unrealized loss on interest rate derivative instrument, net of tax | (9) | (6.5) |
Comprehensive income (loss) | $ 27.4 | $ (93.8) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) $ in Millions | Common Stock | Management Units | Treasury Stock at Cost | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total |
Balances at beginning of period at Dec. 31, 2016 | $ 0.7 | $ (58.8) | $ (617.9) | $ (676) | |||
Balances at beginning of period (in shares) at Dec. 31, 2016 | 66,498,762 | 201,696 | |||||
Increase (Decrease) in Stockholders' Deficit | |||||||
Repurchase of old management units | (8.8) | (8.8) | |||||
Cancellation of management D units (in units) | (201,696) | ||||||
Proceeds from issuance of common stock, net of issue costs | $ 0.2 | 333.9 | 334.1 | ||||
Proceeds from issuance of common stock, net of issue costs (in shares) | 20,970,589 | ||||||
Contribution from Parent | 20.3 | 20.3 | |||||
Non-cash compensation expense | 13.4 | 13.4 | |||||
Issuance of restricted stock, net (in shares) | 1,418,564 | ||||||
Purchase of shares | $ (4.8) | $ (4.8) | |||||
Purchase of shares (in shares) | (461,173) | (461,173) | |||||
Other | (0.1) | $ (0.1) | |||||
Net income (loss) | 185.3 | 185.3 | |||||
Balances at end of period at Dec. 31, 2017 | $ 0.9 | (4.8) | 299.9 | (432.6) | (136.6) | ||
Balances at end of period (in shares) at Dec. 31, 2017 | 88,426,742 | ||||||
Increase (Decrease) in Stockholders' Deficit | |||||||
Impact of change in accounting policy | 9.1 | 9.1 | |||||
Changes in accumulated other comprehensive loss, net | $ (6.5) | (6.5) | |||||
Stock-based compensation | 13 | 13 | |||||
Issuance of restricted stock, net (in shares) | 1,684,778 | ||||||
Purchase of shares | (73.3) | $ (73.3) | |||||
Purchase of shares (in shares) | (7,431,140) | (7,431,140) | |||||
Other | (0.2) | $ (0.2) | |||||
Net income (loss) | (87.3) | (87.3) | |||||
Balances at end of period at Dec. 31, 2018 | $ 0.9 | (78.1) | 312.7 | (6.5) | (510.8) | $ (281.8) | |
Balances at end of period (in shares) at Dec. 31, 2018 | 82,680,380 | 82,680,380 | |||||
Increase (Decrease) in Stockholders' Deficit | |||||||
Changes in accumulated other comprehensive loss, net | (9) | $ (9) | |||||
Stock-based compensation | 10.1 | 10.1 | |||||
Issuance of restricted stock, net (in shares) | 1,609,514 | ||||||
Purchase of shares | (1.6) | $ (1.6) | |||||
Purchase of shares (in shares) | (186,786) | (186,786) | |||||
Net income (loss) | 36.4 | $ 36.4 | |||||
Balances at end of period at Dec. 31, 2019 | $ 0.9 | $ (79.7) | $ 322.8 | $ (15.5) | $ (474.4) | $ (245.9) | |
Balances at end of period (in shares) at Dec. 31, 2019 | 84,103,108 | 84,103,108 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Parenthetical) - Restricted stock awards - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Number of shares granted to employees and directors | 3,140,168 | 2,356,418 | 1,914,570 |
Common Stock | |||
Number of shares granted to employees and directors | 3,140,168 | 2,356,418 | 1,914,570 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 36.4 | $ (87.3) | $ 185.3 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 206.2 | 186.9 | 198.1 |
Deferred income taxes | 4.3 | (57.3) | (175.9) |
Provision for doubtful accounts | 16.9 | 20.2 | 19.7 |
Gain on sale of Lawrence, Kansas system | (38.4) | ||
Loss (gain) on sale of assets, net | 5.4 | (0.9) | (94.1) |
Amortization of debt issuance costs and discount | 4.7 | 4.7 | 5 |
Loss on early extinguishment of debt | 7.1 | ||
Impairment losses on intangibles and goodwill | 9.7 | 216.3 | 147.4 |
Non-cash compensation | 10.1 | 13 | 13.4 |
Other non-cash items | 0.6 | 0.2 | |
Changes in operating assets and liabilities: | |||
Receivables and other operating assets | (25.2) | (36.7) | (27) |
Payables and accruals | (2.8) | 10.4 | (45.3) |
Net cash provided by operating activities | 266.3 | 269.3 | 195.5 |
Cash flows from investing activities: | |||
Capital expenditures | (247.5) | (314.1) | (301.3) |
Proceeds from sale of Chicago fiber assets | 24.7 | 22.6 | 221.6 |
Proceeds from sale of Lawrence, Kansas system | 213 | ||
Other investing activities | (1.3) | 3.8 | 1.2 |
Net cash provided by (used in) investing activities | (224.1) | (287.7) | 134.5 |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 80 | 110 | 2,454.3 |
Payments on long-term debt and finance lease obligations | (112.8) | (74.3) | (3,082.2) |
Proceeds from issuance of common stock, net of issuance costs | 334.1 | ||
Contribution from Parent | 20.3 | ||
Payment of debt issuance costs | (3.7) | ||
Repurchase of management units | (8.8) | ||
Purchase of shares | (1.6) | (73.3) | (4.8) |
Other | (0.2) | (0.6) | |
Net cash used in financing activities | (34.4) | (37.8) | (291.4) |
Increase (decrease) in cash and cash equivalents | 7.8 | (56.2) | 38.6 |
Cash and cash equivalents, beginning of period | 13.2 | 69.4 | 30.8 |
Cash and cash equivalents, end of period | 21 | 13.2 | 69.4 |
Supplemental disclosures of cash flow information: | |||
Cash paid during the periods for interest | 139 | 126.8 | 190.3 |
Cash paid during the periods for income taxes, net | 1.6 | 11.9 | 6.5 |
Insurance proceeds received for business interruption | 9.6 | 1.5 | |
Non-cash financing activities: | |||
Capital expenditure accounts payable and accruals | $ 16.8 | $ 18.2 | $ 11 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
General Information | |
General Information | 1. Organization and Basis of Presentation Organization ā WideOpenWest, Inc. (āWOWā or the āCompanyā) is a fully integrated provider of high-speed data ("HSD"), cable television ("Video"), and digital telephony ("Telephony") services. The Company serves customers in nineteen Midwestern and Southeastern markets in the United States. The Company manages and operates its Midwestern broadband networks in Detroit and Lansing, Michigan; Chicago, Illinois; Cleveland and Columbus, Ohio; Evansville, Indiana and Baltimore, Maryland. The Southeastern systems are located in Augusta, Columbus, Newnan and West Point, Georgia; Charleston, South Carolina; Dothan, Auburn, Huntsville and Montgomery, Alabama; Knoxville, Tennessee; and Panama City and Pinellas County, Florida. On May 25, 2017, the Company completed an initial public offering (āIPOā) of shares of its common stock, which are listed on the New York Stock Exchange (āNYSEā) under the ticker symbol āWOWā. Prior to its IPO, WOW was wholly owned by Racecar Acquisition, LLC, which is a wholly owned subsidiary of WideOpenWest Holdings, LLC (āformer Parentā). Prior to the IPO, the former Parentās investment in WOW consisted of various classes of common units, which have been āpushed downā to the Company. Subsequent to the IPO, Racecar Acquisition, LLC (āRacecar Acquisitionā) and former Parent do not own any shares in the Company as a result of a distribution of shares to their respective owners. Basis of Presentation ā The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules and regulations of the Securities and Exchange Commission (the āSECā). ā These accounting principles require management to make assumptions and estimates that affect the reported amounts and disclosures of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts and disclosures of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances. However, due to the inherent uncertainties in making estimates, actual results could differ from those estimates. Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation with no effect on the Companyās previously reported results of operations, financial position, or cash flows. ā Revision of Prior Period Financial Statements ā In connection with the preparation of its consolidated financial statements, the Company identified an immaterial error related to the recognition of deferred tax assets related to state bonus depreciation modification in certain states in prior periods. In accordance with SEC Staff Accounting Bulletins SAB Topic 1.M, āAssessing Materialityā and SAB Topic 1.N āConsidering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statementsā, the Company evaluated the error, considering both quantitative and qualitative factors, and determined (i) that the related impact was immaterial to its financial statements for any prior annual or interim period, (ii) leaving it uncorrected, however, would misstate the current period, and (iii) that correcting the impact of the error in the respective annual or interim periods would be helpful to understanding our results of operations for the year ended December 31, 2019. Accordingly, the Company has revised previously reported financial information for such immaterial error. A summary of revisions to certain previously reported financial information presented herein for comparative purposes is included in Note 21. ā |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements of WOW reflect all transactions of WideOpenWest, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. ā Certain employees of WOW participated in equity plans administered by the Companyās former Parent. As the management units from the equity plan were issued from the former Parentās ownership structure, the management unitsā value directly correlated to the results of WOW, as the primary asset of the former Parentās investment in WOW. The management units for the equity plan have been āpushed downā to the Company, as the management units had been utilized as equity-based compensation for WOW management. Immediately prior to the Companyās IPO, these management units were cancelled. See Note 14 ā Stock-based Compensation for further discussion . Cash and Cash Equivalents Cash equivalents represent short-term investments consisting of money market funds that are carried at cost, which approximates fair value. The Company considers all short-term investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Provision for Doubtful Accounts The provision for doubtful accounts and the allowance for doubtful accounts are based on historical trends. The Companyās policy to reserve for potential bad debts is based on the aging of the individual receivables. The Company manages credit risk by disconnecting services to customers who are delinquent, generally after sixty days of delinquency. The individual receivables are written-off after all reasonable efforts to collect the funds have been made. Actual write-offs may differ from the amounts reserved. The following table presents the change in the allowance for doubtful accounts for the years ended December 31: ā ā ā ā ā ā ā ā ā ā 2019 2018 ā ā (in millions) Balance at beginning of year ā $ 7.5 ā $ 5.8 Provision charged to expense ā 16.9 ā 20.2 Accounts written off, net of recoveries ā (16.9) ā (19.7) Other ā ā ā 1.2 Balance at end of year ā $ 7.5 ā $ 7.5 ā Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and amortization and primarily represent costs associated with the construction of cable transmission and distribution facilities and new service installations at the customer location. Capitalized costs include materials, labor, and certain indirect costs attributable to the capitalization activity. Maintenance and repairs are expensed as incurred. Upon sale or retirement of an asset, the cost and related depreciation and amortization are removed from the related accounts and resulting gains or losses are reflected in operating results. The Company makes judgments regarding the installation and construction activities to be capitalized. The Company capitalizes direct labor associated with capitalizable activities and indirect costs using standards developed from operational data, including the proportionate time to perform a new installation relative to the total installation activities and an evaluation of the nature of the indirect costs incurred to support capitalizable activities. Judgment is required to determine the extent to which indirect costs incurred are related to capitalizable activities. Indirect costs include (i) employee benefits and payroll taxes associated with capitalized direct labor, (ii) direct variable costs of installation and construction, (iii) the direct variable costs of support personnel directly involved in assisting with installation activities, such as dispatchers and (iv) other indirect costs directly attributable to capitalizable activities. Property, plant and equipment are depreciated over the estimated useful life upon being placed into service. Depreciation of property, plant and equipment is calculated on a straight-line basis, over the following estimated useful lives: ā ā ā ā ā ā ā Estimated Useful Asset Category Lives (Years) Office and technical equipment 3 - 10 ā Computer equipment and software 3 ā Customer premise equipment 5 ā Vehicles 5 ā Telephony infrastructure ā 5 - 7 ā Headend equipment 7 ā Distribution facilities 10 ā Building and leasehold improvements 5 - 20 ā ā Leasehold improvements are depreciated over the shorter of the estimated useful lives or lease terms. Intangible Assets and Goodwill Intangible assets consist primarily of acquired franchise operating rights and goodwill. Franchise operating rights represent the value attributable to agreements with local franchising authorities, which allow access to homes in the public right of way. The Companyās franchise operating rights were acquired through business combinations. The Company does not amortize franchise operating rights as it has determined that they have an indefinite life. Costs incurred in negotiating and renewing franchise operating agreements are expensed as incurred. Franchise related customer relationships represent the value to the Company of the benefit of acquiring the existing cable subscriber base and are amortized over the estimated life of the subscriber base (four years) on a straight-line basis, which is shorter than the economic useful life, which approximates an accelerated method. Goodwill represents the excess purchase price over the fair value of the identifiable net assets acquired in business combinations. Asset Impairments Significant judgment by management is required to determine estimates and assumptions used in the valuation of property, plant and equipment, intangible assets and goodwill. Long-lived Assets The Company evaluates the recoverability of its long-lived assets whenever events or substantive changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is based on the undiscounted cash flows generated by the underlying asset groups, including estimated future operating results, trends or other determinants of fair value. If the total of the expected future undiscounted cash flows were less than the carrying amount of the asset group, the Company would recognize an impairment charge to the extent the carrying amount of the asset group exceeds its estimated fair value. The Company had no triggering events or impairment of its long-lived assets in any of the periods presented. Franchise Operating Rights The Company evaluates the recoverability of its franchise operating rights at least annually on October 1, or more frequently whenever events or substantive changes in circumstances indicate that the assets might be impaired. The Company evaluates the franchise operating rights for impairment by comparing the carrying value of the intangible asset to its estimated fair value utilizing both quantitative and qualitative methods. Any excess of the carrying value over the fair value would be expensed as an impairment loss. The Company calculates the fair value of franchise operating rights using the multi-period excess earnings method, an income approach, which calculates the value of an intangible asset by discounting its future cash flows. The fair value is determined based on estimated discrete discounted future cash flows attributable to each franchise operating right intangible asset using assumptions consistent with internal forecasts. Assumptions key in estimating fair value under this method include, but are not limited to, revenue and subscriber growth rates (less anticipated customer churn), operating expenditures, capital expenditures (including any build out), market share achieved, contributory asset charge rates, tax rates and discount rate. The discount rate used in the model represents a weighted average cost of capital and the perceived risk associated with an intangible asset such as franchise operating rights. See Note 7 - Franchise Operating Rights & Goodwill for discussion of impairment charges recognized for the years ended December 31, 2019, 2018 and 2017. Goodwill The Company assesses the recoverability of its goodwill at least annually on October 1, or more frequently whenever events or substantive changes in circumstances indicate that the asset might be impaired. The Company may first choose to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company performs a quantitative analysis. The Company may also choose to by-pass the qualitative assessment and proceed directly to the quantitative analysis. In the quantitative analysis, the Company utilizes a discounted cash flow analysis or a market approach to estimate the fair value of goodwill and compares such value to the carrying amount. Any excess of the carrying value of goodwill over the estimated fair value of goodwill would be expensed as an impairment loss. The Company assessed its reporting units as part of its annual analysis on October 1 and determined that it had one reporting unit for purposes of its goodwill analysis. See Note 7 - Franchise Operating Rights & Goodwill for a discussion of impairment charges recognized for the years ended December 31, 2019, 2018 and 2017. Debt Issuance Costs Debt issuance costs incurred by the Company are capitalized and amortized over the life of the related debt using the effective interest rate method and are included as a reduction in long-term debt in the accompanying consolidated balance sheets. Amortization of debt issuance costs are included in interest expense on the accompanying consolidated statements of operations. Other Noncurrent Assets Other noncurrent assets are comprised primarily of long-term software costs and long-term deferred contract costs. These amounts are recognized as operating expenses or selling, general, and administrative expense over the period of usage. Fair Value of Financial Instruments Carrying amounts reported in the consolidated balance sheets for cash and cash equivalents are carried at fair value. The carrying amounts reported in the consolidated balance sheets for accounts receivable and accounts payable approximate fair value due to their short-term maturities. The fair value of long-term debt is based on the debtās variable rate of interest and the Companyās own credit risk and risk of nonperformance, as required by the GAAP. Certain financial instruments potentially subject the Company to concentrations of credit risk. These financial instruments consist primarily of trade receivables and cash and cash equivalents. The Company places its cash and cash equivalents with high credit quality financial institutions. The Company does not enter into master netting arrangements. The Company periodically assesses the creditworthiness of the institutions with which it invests. The Company does, however, maintain invested balances in excess of federally insured limits; however, the Company has never experienced any losses related to these balances. Programming Costs and Deferred Credits Programming is acquired for distribution to subscribers, generally pursuant to multi-year license agreements, with rates typically based on the number of subscribers that receive the programming. These programming costs are included in operating expenses in the month the programming is distributed. Deferred credits consist primarily of incentives received or receivable from cable networks for license of their programming. These incentive payments are deferred to accrued liabilities and other on the consolidated balance sheet and recognized over the term of the related programming agreements as a reduction to programming costs in operating expenses. Asset Retirement Obligations The Company accounts for its asset retirement obligations by recognizing a liability for the fair value of a conditional asset retirement obligation when incurred if the fair value of the liability can be reasonably estimated. Certain of the Companyās franchise agreements and leases contain provisions requiring the Company to restore facilities or remove equipment upon the maturity of the franchise or lease agreement. The Company expects to continually renew its franchise agreements. Accordingly, the Company has determined a remote possibility that the Company would be required to incur significant restoration or removal costs related to these franchise agreements in the foreseeable future. An estimated liability, which could be significant, would be recorded in the unlikely event a franchise agreement containing such a provision were no longer expected to be renewed. An estimate of the obligations related to the removal provisions contained in the Companyās lease agreements has been made and recorded in other non-current liabilities in the consolidated balance sheet; however, the amount is not material. Revenue Recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers Revenue Recognition ā Residential and business subscription services revenue consists primarily of monthly recurring charges for HSD, Video, and Telephony services, including charges for equipment rentals and other regulatory fees, and non-recurring charges for optional services, such as pay-per-view, video-on-demand, and other events provided to the customer. Monthly charges for residential and business subscription services are billed in advance and recognized as revenue over the period of time the associated services are provided to the customer. Charges for optional services are generally billed in arrears and revenues are recognized at the point in time when the services are provided to the customer. Residential and business customers may be charged non-recurring upfront fees associated with installation and other administrative activities. Charges for upfront fees associated with installation and other administrative activities are initially recorded as unearned service revenue and recognized as revenue over the expected period of benefit for residential customers and over the contract term for business customers. The Company is required to pay certain cable franchising authorities an amount based on the percentage of gross revenue derived from Video services. The Company generally passes these fees and other similar regulatory and ancillary fees on to the customer. Revenues from regulatory and other ancillary fees passed on to the customer are reported with the associated service revenue and the corresponding costs are reported as an operating expense. ā The Companyās trade receivables are subject to credit risk, as customer deposits are generally not required. The Companyās credit risk is limited due to the large number of customers, individually small balances and short payment terms. The Company manages credit risk by screening applicants through the use of internal customer information, identification verification tools and credit bureau data. If a customer account is delinquent, various measures are used to collect amounts owed, including termination of the customerās service. Costs and Expenses The Companyās expenses consist of operating, selling, general and administrative expenses, depreciation and amortization expense and interest expense. During the year ended December 31, 2019, the Company received business interruption insurance proceeds as a result of Hurricane Michael; the receipt of which is recorded to operating expense in the statements of operations. Advertising Costs The cost of advertising is expensed as incurred and is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. Advertising expense during the years ended December 31, 2019, 2018 and 2017 was $33.6 million, $31.2 million and $23.3 million, respectively. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the difference is expected to reverse. Additionally, the impact of changes in the tax rates and laws on deferred taxes, if any, is reflected in the financial statements in the period of enactment. Valuation allowances are established to reduce deferred tax assets to the amount that will more likely than not be realized. To the extent that a determination was made to establish or adjust a valuation allowance, the expense or benefit is recorded in the period in which the determination is made. ā From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. The Company prepares and files tax returns based on its interpretation of tax laws and regulations. In the normal course of business, the tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax, interest and penalty assessments by these taxing authorities. In determining the Companyās income tax provision for financial reporting purposes, the Company establishes a reserve for uncertain income tax positions unless such positions are determined to be more likely than not of being sustained upon examination, based on their technical merits. That is, for financial reporting purposes, the Company only recognizes tax benefits taken on the tax return that the Company believes are more likely than not of being sustained upon examination. There is considerable judgment involved in determining whether positions taken on the tax return are more likely than not of being sustained. The Company adjusts its tax reserve estimates periodically because of ongoing examinations by, and settlements with, the various taxing authorities, as well as changes in tax laws, regulations and interpretations. The consolidated income tax provision of any given year includes adjustments to prior year income tax accruals that are considered appropriate and any related estimated interest and penalties. The Companyās policy is to recognize, when applicable, interest and penalties on uncertain income tax positions as part of income tax provision. Derivative Financial Instruments The Company may use derivative financial instruments to manage its exposure to fluctuations in interest rates by entering into interest rate exchange agreements such as interest rate swaps. All derivatives, whether designated as a hedge or not, are required to be recorded on the consolidated balance sheet at fair value. If the derivative is designated as a hedge and is highly effective as a hedging instrument, recognition of changes in fair value depend on whether the derivative is used in a fair value hedge, in which changes are recognized in earnings, or cash flow hedge, in which changes are recognized in other comprehensive income. If the derivative is not designated as a hedge, changes in the fair value of the derivative are recognized in earnings. Refer to Note 11 ā Derivative Instruments and Hedging Activities for a discussion of hedging activities for the year ended December 31, 2019. Stock-based Compensation The Companyās stock-based compensation consists of awards of management incentive units (prior to the Companyās IPO) and restricted stock awards (subsequent to the Companyās IPO). Compensation costs associated with these awards are based on the estimated fair value at the date of grant and are recognized over the period in which any related services are provided or when it is probable any related performance condition will be met and distributions are declared. The Company currently does not estimate forfeitures on the restricted stock awards but accounts for forfeitures as they occur. Segments The Companyās chief operating decision maker (āCODMā) regularly reviews the Companyās results to assess the Companyās performance and allocates resources at a consolidated level. Although the consolidated results include the Companyās three products (i) HSD; (ii) Video; and (iii) Telephony and are used to assess performance by product(s), decisions to allocate resources (including capital) are made to benefit the consolidated Company. The three products are delivered through a unified network and have similar types or classes of customers. Furthermore, the decision to allocate resources to plant maintenance and to upgrade the Companyās service delivery over a unified network to the customer benefits all three product offerings and is not based on any given service product. As such, management has determined that the Company has one reportable segment, broadband services. Recently Issued Accounting Pronouncements ASU-2018-15, Customerās Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the Financial Accounting Standards Board (āFASBā) issued Accounting Standards Update (āASUā) 2018-15, Customerās Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (āASU 2018-15ā), which requires a customer in a hosting arrangement that is a service contract to apply the guidance on internal-use software to determine which implementation costs to recognize as an asset and which costs to expense. Costs to develop or obtain internal-use software that cannot be capitalized under Subtopic 350-40, Internal-Use Software, such as training costs and certain data conversion costs, also cannot be capitalized for a hosting arrangement that is a service contract. The amendments require a customer in a hosting arrangement that is a service contract to determine whether an implementation activity relates to the preliminary project stage, the application development stage, or the post-implementation stage. Costs for implementation activities in the application development stage will be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages will be expensed immediately. ASU 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company plans to adopt this guidance prospectively as of January 1, 2020. The adoption will not have a material impact on the Companyās financial position, results of operations or cash flows. ASU 2019-12, Income Taxes āIncome Taxes (Topic 740): Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes (āASU 2019-12ā). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the timing of adopting this guidance and the impact of adoption on its financial position, results of operations and cash flows. Recently Adopted Accounting Pronouncements In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) (āASU 2016-02ā). Under ASU 2016-02, an entity is required to recognize right-of-use (āROUā) assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018 (January 1, 2019 for the Company). ASU 2016-02 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, ASU 2018-10, Codification Improvements to Topic 842, Leases, ASU 2018-11, Targeted Improvements (āASU 2018-11ā) and ASU 2018-20, Narrow-Scope Improvements for Lessors. The Company adopted the new lease standard using the effective date method as of January 1, 2019 as allowed under ASU 2018-11. Consequently, financial information will not be retrospectively restated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elected the āpackage of practical expedientsā, which permits the Company to not reassess the Companyās prior conclusions about lease identification, lease classification and initial direct costs. Additionally, the Company elected the practical expedient pertaining to land easements, which allows the Company to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under Topic 840. The Company did not elect the use-of-hindsight transition practical expedient. Topic 842 also provides practical expedients for the Companyās ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify, meaning the Company will not recognize right-of-use assets or lease liabilities for existing and new lease agreements that have a lease term of twelve months or less and do not include a purchase option. Additionally, the Company elected the practical expedient to not separate lease and non-lease components for all of its leases, including those for which the Company is a lessee and those for which it is a lessor. Adoption of ASU 2016-02 resulted in the recording of ROU assets and liabilities for the Companyās operating leases of approximately $23.9 million and $25.0 million, respectively, as of January 1, 2019. The difference between the ROU assets and lease liabilities ā |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers Residential and Business Subscription Services Residential and business subscription services revenue consists primarily of monthly recurring charges for HSD, Video, and Telephony services, including charges for equipment rentals and other regulatory fees, and non-recurring charges for optional services, such as pay-per-view, video-on-demand, and other events provided to the customer. Monthly charges for residential and business subscription services are billed in advance and recognized as revenue over the period of time the associated services are provided to the customer. Charges for optional services are generally billed in arrears and revenue is recognized at the point in time when the services are provided to the customer. ā HSD revenue consists primarily of fixed monthly fees for data service, including charges for rentals of modems, and revenue recognized related to non-recurring upfront fees associated with installation and other administrative activities provided to HSD customers. ā Video revenue consists of fixed monthly fees for basic, premium and digital cable television services, including charges for rentals of video converter equipment, other regulatory fees, and revenue recognized related to non-recurring upfront fees associated with installation and other administrative activities provided to video customers, as well as non-recurring charges for optional services, such as pay-per-view, video-on-demand and other events provided to the customer. ā Telephony revenue consists of fixed monthly fees for local services, including certain regulatory and ancillary customer fees, and enhanced services, such as call waiting and voice mail, revenue recognized related to non-recurring upfront fees associated with installation and other administrative activities provided to telephony customers as well as charges for measured and flat rate long-distance service. While a portion of residential customers have entered into contracts for subscription services ranging from 12 months to 24 months in length, the Company recognizes revenue for these customers on a basis that is consistent with customers that have entered into month-to-month contracts as the early termination fees within these contracts are not considered to be material. The Companyās business customers have entered into non-cancellable contracts for subscription services averaging 30 months. The Company is required to pay certain cable franchising authorities an amount based on the percentage of gross revenue derived from video services. The Company generally passes these fees and other similar regulatory and ancillary fees on to the customer. Revenues from regulatory and other ancillary fees passed on to the customer are reported with the associated service revenue and the corresponding costs are reported as an operating expense. Bundled Subscription Services The Company often markets multiple subscription services as part of a bundled arrangement that may include a discount. When customers have entered into a bundled service arrangement, the total transaction price for the bundled arrangement is allocated between the separate services included in the bundle based on their relative stand-alone selling prices. The allocation of the transaction price in bundled services requires judgment, particularly in determining the stand-alone selling prices for the separate services included in the bundle. The stand-alone selling price for the majority of services are determined based on the prices at which the Company separately sells the service. For services sold on an infrequent basis and for a wide range of prices, the Company estimates stand-alone selling prices using the adjusted market assessment approach, which considers the prices of competitors for similar services. Other Business Services Revenue Other business services revenue consists primarily of monthly recurring charges for session initiated protocol, web hosting, metro Ethernet, wireless backhaul, broadband carrier, and cloud infrastructure services provided to business customers. Monthly charges for other business services are generally billed in advance and recognized as revenue when the associated services are provided to the customer. Other Revenue Other revenue consists primarily of revenue from line assurance warranty services provided to residential and business customers and revenue from advertising placement. Monthly charges for line assurance warranty services are generally billed in advance and recognized as revenue over the period of time the warranty services are provided to the customer. Charges for advertising placement are generally billed in arrears and recognized as revenue at the point in time when the advertising is distributed. Revenue by Service Offering The following table presents revenue by service offering: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā ā 2019 ā 2018 ā ā Residential ā Business ā Total ā ā Residential ā ā Business ā ā Total ā Subscription Subscription Revenue Subscription Subscription Revenue ā ā (in millions) HSD ā $ 440.7 ā $ 80.3 ā $ 521.0 ā $ 393.6 ā $ 73.5 ā $ 467.1 Video ā 417.4 ā 14.6 ā ā 432.0 ā ā 465.3 ā ā 14.1 ā ā 479.4 Telephony ā 59.9 ā 42.8 ā ā 102.7 ā ā 74.4 ā ā 41.9 ā ā 116.3 Total subscription services revenue ā $ 918.0 ā $ 137.7 ā $ 1,055.7 ā $ 933.3 ā $ 129.5 ā $ 1,062.8 Other business services revenue(1) ā ā ā ā ā ā ā ā 27.4 ā ā ā ā ā ā ā ā 28.1 Other revenue ā ā ā ā ā ā ā ā 62.7 ā ā ā ā ā ā ā ā 62.9 Total revenue ā $ 918.0 ā $ 137.7 ā $ 1,145.8 ā $ 933.3 ā $ 129.5 ā $ 1,153.8 (1) Includes wholesale and colocation revenue of $21.6 million and $21.9 million for the years ended December 31, 2019 and 2018, respectively. Costs of Obtaining Contracts with Customers The Company recognizes an asset for incremental costs of obtaining contracts with customers when it expects to recover those costs. Costs which would be incurred regardless of whether a contract is obtained are expensed as they are incurred. Costs of obtaining contracts with customers are amortized over the expected period of benefit, which generally ranges from three six The following tables present the activity and current and non-current costs of obtaining contracts with customers as of the end of the corresponding periods: ā ā ā ā ā ā ā ā ā 2019 2018 ā ā (in millions) Balance at beginning of year ā $ 26.3 ā $ ā Impact of change in accounting policy ā ā ā ā ā 11.4 Deferral ā 22.2 ā 19.0 Amortization ā (7.8) ā (4.1) Balance at end of year ā $ 40.7 ā $ 26.3 ā ā ā ā ā ā ā Current costs of obtaining contracts with customers, end of period ā $ 10.0 ā $ 6.0 Non-current costs of obtaining contracts with customers, end of period ā ā 30.7 ā ā 20.3 Total costs of obtaining contracts with customers, end of period ā $ 40.7 ā $ 26.3 ā Contract Liabilities Monthly charges for residential and business subscription services are billed in advance and recorded as unearned service revenue. Residential and business customers may be charged non-recurring upfront fees associated with installation and other administrative activities. Charges for upfront fees associated with installation and other administrative activities are initially recorded as unearned service revenue and recognized as revenue over the expected period of benefit for residential customers, which has been estimated as five months, and over the contract term for business customers, which has been estimated as thirty months. The Company has estimated the expected period of benefit for residential customers based on consideration of quantitative and qualitative factors including the average installation fee charged, the average monthly revenue per customer, and customer behavior. The current portion and the non-current portion of contract liabilities are included in current portion of unearned service revenue and other non-current liabilities, respectively, in the Companyās consolidated balance sheet. The following tables present the activity and current and non-current contract liabilities as of the end of the corresponding periods: ā ā ā ā ā ā ā ā ā 2019 2018 ā ā (in millions) Balance at beginning of year ā $ 3.9 ā $ ā Impact of change in accounting policy ā ā ā ā ā 2.1 Deferral ā 16.1 ā 17.5 Revenue recognized ā (15.8) ā (15.7) Balance at end of year ā $ 4.2 ā $ 3.9 ā ā ā ā ā ā ā Current contract liabilities, end of period ā $ 3.6 ā $ 3.3 Non-current contract liabilities, end of period ā ā 0.6 ā ā 0.6 Total contract liabilities, end of period ā $ 4.2 ā $ 3.9 ā Unsatisfied Performance Obligations Revenue from month-to-month residential subscription service contracts have historically represented a significant portion of the Companyās revenue and the Company expects that this will continue to be the case in future periods. All residential subscription service performance obligations will be satisfied within one year. A summary of expected business subscription service revenue to be recognized in future periods related to performance obligations which have not been satisfied or are partially unsatisfied as of December 31, 2019 is set forth in the table below: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2020 2021 2022 Thereafter Total ā ā (in millions) Subscription services ā $ 74.5 ā $ 42.5 ā $ 15.5 ā $ 25.3 ā $ 157.8 Other business services ā 3.6 ā 2.2 ā 0.9 ā 0.4 ā 7.1 Total expected revenue ā $ 78.1 ā $ 44.7 ā $ 16.4 ā $ 25.7 ā $ 164.9 ā |
Asset Sales
Asset Sales | 12 Months Ended |
Dec. 31, 2019 | |
Asset Sales | |
Asset Sales | 4. Asset Sales Sale of Chicago Fiber Network On August 1, 2017, the Company entered into a definitive agreement to sell a portion of its fiber network in the Companyās Chicago market to a subsidiary of Verizon for $225.0 million in cash. On December 14, 2017, the Company finalized the sale by entering into an Asset Purchase Agreement (āAPAā) with a subsidiary of Verizon. As a result, the Company recorded a gain on sale of assets of $93.7 million. In addition to the APA, the Company and a subsidiary of Verizon entered into a Construction Services Agreement pursuant to which the Company agreed to complete the build-out of the network in exchange for $50.0 million, which represented the estimated remaining build-out costs to complete the network. The $50.0 million was recognized over time as such network elements were completed and accepted. The Company completed the network build-out during the third quarter of 2019. The Company recognized a $3.3 million loss on sale of assets resulting from the completion of the Construction Services Agreement during the year ended December 31, 2019. The Company recognized a $2.0 million and $0.4 million gain on sale of assets related to the Construction Services Agreement for the years ended December 31, 2018 and 2017, respectively. Sale of Lawrence, Kansas System On January 12, 2017, the Company and Midcontinent Communications (āMidCoā) consummated an asset purchase agreement under which MidCo acquired the Companyās Lawrence, Kansas system for net proceeds of approximately $213.0 million in cash, subject to certain normal and customary purchase price adjustments set forth in the agreement. As a result of the asset purchase agreement, the Company recorded a gain on sale of assets of $38.4 million. The results of the Companyās Lawrence, Kansas system are included in the first 12 days of the year ended December 31, 2017 consolidated financial statements. The Company and MidCo also entered into a transition services agreement under which the Company provided certain services to MidCo on a transitional basis. The transition services agreement, originally expiring on July 1, 2017, was extended to September 28, 2017. Charges for the transition services generally allowed the Company to fully recover all allowed costs and allocated expenses incurred in connection with providing these services, generally without profit. |
Plant, Property and Equipment,
Plant, Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Plant, Property and Equipment, Net | |
Plant, Property and Equipment, Net | 5. Property, Plant and Equipment Property, plant and equipment consist of the following: ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (in millions) Distribution facilities ā $ 1,780.7 ā $ 1,543.3 Customer premise equipment ā 460.1 ā 440.4 Head-end equipment ā 341.2 ā 321.9 Telephony infrastructure ā 97.9 ā 94.8 Computer equipment and software ā 146.4 ā 129.1 Vehicles ā 37.0 ā 36.5 Buildings and leasehold improvements ā 49.5 ā 46.3 Office and technical equipment ā 33.5 ā 32.7 Land ā 6.2 ā 6.2 Construction in progress (including material inventory and other) ā 61.2 ā 157.8 Total property, plant and equipment ā 3,013.7 ā 2,809.0 Less accumulated depreciation ā (1,940.0) ā (1,755.6) ā ā $ 1,073.7 ā $ 1,053.4 ā Depreciation expense for the years ended December 31, 2019, 2018 and 2017 was $204.4 million, $185.1 million, and $196.2 million, respectively. Included in the loss (gain) on sale of assets were write-offs of obsolete assets of $2.4 million, $0.6 million, and $0.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | 6. Leases The Company leases certain property, vehicles and equipment for use in its operations. The Company determines if an arrangement is or contains a lease at inception. The Company has lease agreements with lease and non-lease components and has elected to not separate these components for all classes of underlying assets. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. Leases with initial terms greater than 12 months are recorded as operating or financing leases on the consolidated balance sheet. As of December 31, 2019, financing lease assets of $22.7 million are included in property, plant and equipment on the consolidated balance sheet. Financing lease liabilities are included within the current long-term ā Right-of-use lease assets and lease liabilities are recognized upon lease commencement based on the present value of the future minimum lease payments over the lease term. The Company utilizes a collateralized incremental borrowing rate based on information available at the lease commencement date in determining the present value of future payments, unless the rate is implicit in the lease agreement. The operating and finance leases may contain variable payments for common-area maintenance, taxes and insurance, and repairs and maintenance. Variable payments are recognized when incurred and not included in the measurement of the right-of-use asset and lease liability. In instances where customer premise equipment (āCPEā) would qualify as a lease, the Company applies the practical expedient to combine the operating lease with the subscription revenue as a single performance obligation in accordance with revenue recognition accounting guidance as the subscription service is the predominant component. ā The Companyās lease agreements may contain options to extend the lease term beyond the initial term, termination options, and options to purchase the underlying asset. The Company has not included these options in the lease term or the related payments in the measurement of the ROU asset and lease liabilities as the Company has determined the options are not reasonably certain to be exercised. ā Lease components are classified as follows: ā ā ā ā ā ā ā ā ā ā ā Year ended ā ā Classification ā December 31, 2019 ā ā ā ā (in millions) Finance lease cost ā ā ā ā ā Amortization of leased asset ā Depreciation $ 5.3 Interest on lease liabilities ā Interest expense ā ā 0.6 Operating lease cost(1) ā Operating expense ā ā 9.8 Net lease cost ā ā ā $ 15.7 (1) Includes short-term lease and variable costs of $1.6 million for the year ended December 31, 2019. The Company recognized rental expense under operating lease agreements of $9.2 million and $8.8 million for the years ended December 31, 2018 and 2017, respectively. ā The following table presents aggregate lease maturities as of December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā Finance Leases Operating Leases Total ā ā (in millions) 2020 $ 8.9 ā $ 7.7 ā $ 16.6 2021 ā ā 8.8 ā ā 6.9 ā ā 15.7 2022 ā ā 5.1 ā ā 6.1 ā ā 11.2 2023 ā ā 1.2 ā ā 4.5 ā ā 5.7 2024 ā ā 0.5 ā ā 3.1 ā ā 3.6 Thereafter ā ā ā ā ā 6.8 ā ā 6.8 Total lease payments ā ā 24.5 ā ā 35.1 ā ā 59.6 Less: interest ā ā 1.4 ā ā 5.6 ā ā 7.0 Present value of lease liabilities ā $ 23.1 ā $ 29.5 ā $ 52.6 ā The following table presents aggregate lease maturities as of December 31, 2018: ā ā ā ā ā ā ā ā ā ā ā ā Finance Leases Operating Leases Total ā ā (in millions) 2019 $ 1.3 ā $ 7.2 ā $ 8.5 2020 ā ā 1.3 ā ā 5.4 ā ā 6.7 2021 ā ā 1.2 ā ā 4.7 ā ā 5.9 2022 ā ā 0.9 ā ā 4.0 ā ā 4.9 2023 ā ā 0.4 ā ā 2.4 ā ā 2.8 Thereafter ā ā ā ā ā 6.5 ā ā 6.5 Total lease payments ā $ 5.1 ā $ 30.2 ā $ 35.3 ā The following table presents weighted average remaining lease terms and discount rates: ā ā ā ā ā ā ā Year ended ā ā December 31, 2019 ā Weighted-average remaining lease term (in years) ā ā Finance Leases ā 3.0 ā Operating Leases ā 5.6 ā Weighted-average discount rate ā ā ā Finance Leases ā 4.56 % Operating Leases ā 6.21 % ā The following table presents other information related to operating and finance leases: ā ā ā ā ā ā ā ā Year ended ā ā December 31, 2019 ā ā ā (in millions) Cash paid for amounts included in the measurement of lease liabilities: ā ā Operating cash flows from operating leases ā $ ā Operating cash flows from finance leases ā ā 0.6 Financing cash flows from finance leases ā ā 5.0 Right-of-use assets obtained in exchange for lease obligations: ā ā ā Finance leases ā ā 23.5 Operating leases ā ā 10.8 ā |
Franchise Operating Rights & Go
Franchise Operating Rights & Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Franchise Operating Rights & Goodwill | |
Franchise Operating Rights & Goodwill | 7. Franchise Operating Rights & Goodwill Changes in the carrying amounts of the Companyās franchise operating rights and goodwill during 2019 and 2018 are set forth below: ā ā ā ā ā ā ā ā ā ā ā ā ā January 1, ā ā ā December 31, ā 2019 Impairment 2019 ā ā (in millions) Franchise operating rights ā $ 809.2 ā $ (9.7) ā $ 799.5 Goodwill ā 408.8 ā ā ā 408.8 ā ā $ 1,218.0 ā $ (9.7) ā $ 1,208.3 ā ā ā ā ā ā ā ā ā ā ā ā ā January 1, ā ā ā December 31, ā 2018 Impairment 2018 ā ā (in millions) Franchise operating rights ā $ 952.4 ā $ (143.2) ā $ 809.2 Goodwill ā 481.9 ā (73.1) ā 408.8 ā ā $ 1,434.3 ā $ (216.3) ā $ 1,218.0 ā Franchise Operating Rights The Company evaluates the recoverability of its franchise operating rights at least annually on October 1, or more frequently whenever events or substantive changes in circumstances indicate that the assets might be impaired. Franchise operating rights are evaluated for impairment by comparing the carrying value of the intangible asset to its estimated fair value, utilizing both quantitative and qualitative methods, at the reporting unit level. Reporting units identified generally represent the markets in which the Company operates. Qualitative analysis is performed for franchise assets in the event the previous analysis indicates that there is a significant margin between the estimated fair value of franchise operating rights and the carrying value of those rights, and that it is more likely than not that the estimated fair value equals or exceeds its carrying value. For franchise operating rights that were evaluated using quantitative analysis, the Company calculates the estimated fair value of franchise operating rights using the multi-period excess earnings method, an income approach, which calculates the estimated fair value of an intangible asset by discounting its future cash flows. The estimated fair value is determined based on discrete discounted future cash flows attributable to each franchise operating right intangible asset using assumptions consistent with internal forecasts. Assumptions key in estimating fair value under this method include, but are not limited to, revenue and subscriber growth rates (less anticipated customer churn), operating expenditures, capital expenditures (including any build out), market share achieved or market multiples, contributory asset charge rates, tax rates and a discount rate. The discount rate used in the model represents a weighted average cost of capital and the perceived risk associated with an intangible asset such as the Companyās franchise operating rights. If the fair value of the franchise operating right asset was less than its carrying value, the Company recognizes an impairment charge for the difference between the fair value and the carrying value of the asset. As a result of the analysis performed on October 1, 2019, the estimated fair value of two reporting units was determined to be below the carrying value, which resulted in the recognition of non-cash impairment losses of $4.2 million and $5.5 million in the Newnan, GA and Dothan, AL reporting units, respectively. The Company recognized non-cash impairment losses of $9.7 million, $143.2 million, and $14.1 million for the years ended December 31, 2019, 2018, and 2017 respectively. The primary driver of the impairment charges in the years presented was a decline in estimated fair market value of the price of indefinite-lived intangible assets in certain reporting units, as indicated by the decline in the Companyās common stock. The impairment charges do not have an impact on the Companyās intent and/or ability to renew or extend existing franchise operating rights. Goodwill The Company evaluates goodwill for impairment at least annually on October 1, at the reporting unit For the 2017 and 2018 quantitative evaluations of goodwill, the Company utilized both an income approach as well as a market approach. The income approach utilized a discounted cash flow analysis to estimate the fair value of the Company, while the market approach utilized multiples derived from actual precedent transactions of similar businesses, the market value of the Company and market valuations of guideline public companies. As part of the 2018 analysis, the Company recognized a change in reporting units as a result of significant changes in personnel, reporting and operating structure which occurred throughout 2018. As a result of this change, the Company completed an assessment of any potential impairment for all reporting units immediately prior to and after the reporting unit change and determined no impairment existed. For the 2019 evaluation of goodwill, the Company determined the estimated fair value utilizing a market approach that incorporated the approximate market capitalization as of the annual testing date, increased by the quoted market price of the Companyās debt and adjusted for a control premium. The change in approach is attributed to the change to a single reporting unit in the 2018 quantitative evaluation. As a result of the analysis performed on October 1, 2019, the estimated fair value of goodwill exceeded the carrying value and as such, no impairment existed. The Company recognized non-cash impairment losses of nil |
Intangible Assets Subject to Am
Intangible Assets Subject to Amortization | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets Subject to Amortization | |
Intangible Assets Subject to Amortization | 8. Intangible Assets Subject to Amortization Intangible assets subject to amortization consist primarily of multiple-dwelling unit and customer relationships. Changes in the carrying amounts during 2019 and 2018 are set forth below: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā January 1, ā ā ā ā ā ā ā December 31, ā 2019 Acquisitions Amortization 2019 ā ā (in millions) Customer relationships ā $ 1.5 ā $ ā ā $ (1.0) ā $ 0.5 Other ā 2.1 ā 1.1 ā (0.8) ā 2.4 ā ā $ 3.6 ā $ 1.1 ā $ (1.8) ā $ 2.9 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā January 1, ā ā ā ā ā ā ā December 31, ā 2018 Acquisitions Amortization 2018 ā ā (in millions) Customer relationships ā $ 2.5 ā $ ā ā $ (1.0) ā $ 1.5 Other ā 3.0 ā 0.4 ā (1.3) ā 2.1 ā ā $ 5.5 ā $ 0.4 ā $ (2.3) ā $ 3.6 ā ā Amortization expense is included in depreciation and amortization expense in the accompanying consolidated statements of operations. Amortization expense for years ended December 31, 2019, 2018 and 2017 was $1.8 million, $2.3 million and $2.6 million, respectively. Scheduled amortization of the Companyās intangible assets as of December 31, 2019 for the next five years is as follows (in millions): ā ā ā ā 2020 $ 0.9 2021 ā 0.4 2022 ā 0.4 2023 ā 0.3 2024 ā 0.3 Thereafter ā 0.6 ā ā $ 2.9 ā |
Accrued Liabilities and Other
Accrued Liabilities and Other | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities and Other | |
Accrued Liabilities and Other | 9. Accrued Liabilities and Other Accrued liabilities and other consist of the following: ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (in millions) Programming costs ā $ 33.4 ā $ 35.4 Franchise and revenue sharing fees ā 10.9 ā 12.0 Payroll and employee benefits ā 20.8 ā 19.7 Property, income, sales and use taxes ā 2.4 ā 7.4 Utility pole rentals ā 3.4 ā 2.5 Interest rate swaps ā 14.7 ā 2.6 Other accrued liabilities ā 10.0 ā 13.6 ā ā $ 95.6 ā $ 93.2 ā |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Leases | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt and Finance Leases | |
Long-Term Debt and Finance Leases | 10. Long-Term Debt and Finance Lease Obligations The following table summarizes the Companyās long-term debt and finance lease obligations: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā ā December 31, 2019 ā 2018 ā Available ā ā ā ā ā borrowing ā Effective ā ā Outstanding ā Outstanding ā ā capacity ā interest rate(1) ā balance balance ā ā (in millions) Long-term debt: ā ā ā ā Term B Loans, net(2) ā $ ā 5.59 % ā $ 2,220.3 ā $ 2,240.9 Revolving Credit Facility(3) ā 239.5 4.73 % ā 55.0 ā 60.0 Total long-term debt ā $ 239.5 ā ā ā 2,275.3 ā 2,300.9 Finance lease obligations ā ā ā 23.1 ā 5.1 Total long-term debt and finance lease obligations ā ā ā 2,298.4 ā 2,306.0 Debt issuance costs, net(4) ā ā ā (8.0) ā (10.5) Sub-total ā ā ā 2,290.4 ā 2,295.5 Less current portion ā ā ā (30.9) ā (24.1) Long-term portion ā ā ā ā $ 2,259.5 ā $ 2,271.4 (1) Represents the effective interest rate in effect for all borrowings outstanding as of the year ended December 31, 2019 pursuant to each debt instrument including the applicable margin. (2) At December 31, 2019 and 2018 includes $8.4 million and $10.6 million of net unamortized discounts, respectively. (3) Available borrowing capacity at December 31, 2019 represents $300.0 million of total availability less borrowings of $55.0 million on the Revolving Credit Facility and outstanding letters of credit of $5.5 million. Letters of credit are used in the ordinary course of business and are released when the respective contractual obligations have been fulfilled by the Company. (4) At December 31, 2019 and 2018, debt issuance costs include $6.0 million and $7.7 million related to Term B Loans and $2.0 million and $2.8 million related to the Revolving Credit Facility, respectively. ā Refinancing of the Term B Loans and Revolving Credit Facility On July 17, 2017, the Company entered into an eighth amendment (āEighth Amendmentā) to its Credit Agreement, with JPMorgan Chase Bank, N.A., as the administrative agent and revolver agent. Under the Eighth Amendment, (i) the Company borrowed new Term B loans in an aggregate principal amount of $230.5 million, for a total outstanding Term B loan principal amount of $2.28 billion and (ii) the revolving credit commitments were increased by an aggregate principal amount of $100.0 million, for a total outstanding revolving credit commitment of $300.0 million available to the Company under the revolving credit facility. The new Term B loans will mature on August 19, 2023 and bear interest, at the Companyās option, at a rate equal to ABR plus 2.25% or LIBOR plus 3.25%. Borrowings under the revolving credit facility will mature on May 31, 2022 and bear interest, at the Company's option, at a rate equal to ABR plus 2.00% or LIBOR plus 3.00%. The guarantees, collateral and covenants in the Eighth Amendment remain unchanged from those contained in the credit agreement prior to the Eighth Amendment. As a result of the re-financing, the Company recorded a $6.3 million loss on early extinguishment of debt related to the write-off of unamortized debt issuance costs and third party costs. On May 31, 2017, the Company entered into a seventh amendment (āSeventh Amendmentā) to its Credit Agreement. The Seventh Amendment (i) refinanced the then-existing $200.0 million of borrowings available to the Company under the revolving credit facility and (ii) extended the maturity date of the revolving credit facility to May 31, 2022, unless an earlier date was triggered under certain circumstances. The interest rate margins applicable to the revolving credit facility bore interest at a rate equal to ABR plus 2.00% or LIBOR plus 3.00%. Additionally, the Company entered into an Incremental Commitment Letter to its revolving credit facility that increased the available borrowings to $300.0 million that became available upon compliance by the Company with certain conditions (which included redemption of the then existing 10.25% senior notes subsequently achieved as a result of the Eighth Amendment). The guarantees, collateral and covenants in the Seventh Amendment remained unchanged from those contained in the credit agreement prior to the Seventh Amendment. As a result of the refinancing the Company recorded a $1.0 million loss on early extinguishment of debt, primarily related to the write-off of unamortized debt issuance costs and third party costs. Redemption of 10.25% Senior Notes On March 20, 2017, the Company utilized cash on hand to redeem $95.1 million in aggregate principal amount outstanding of the 10.25% Senior Notes due 2019 (āSenior Notesā). In addition to the partial redemption, the Company paid accrued interest on the Senior Notes of $1.7 million and a call premium of $4.9 million. The Company recorded a loss on early extinguishment of debt of $5.0 million, primarily representing the cash call premium paid. On July 17, 2017, the Company used the proceeds of the new Term B loans under the Eighth Amendment, and borrowings under its revolving credit facility of $180.0 million, proceeds from the IPO and cash on hand to fully redeem all of the Companyās remaining outstanding Senior Notes and to pay certain fees and expenses. In connection with the redemption of the Senior Notes, the Company satisfied and discharged the indenture governing the Senior Notes. The Company paid $729.9 million in principal amount, incurred prepayment fees of $18.7 million and paid accrued interest of $37.6 million. The Company recorded a loss on early extinguishment of debt of $19.8 million related to the write-off of unamortized debt issuance costs, premium, and prepayment fees. Long-Term Debt Extinguishment As noted above, the Company recorded a loss on early extinguishment of debt and premium of $32.1 million during the year ended December 31, 2017. The loss on early extinguishment of debt primarily represents prepayment fees, expensing of unamortized discount and debt issuance costs, and third party fees associated with the refinancing. The Company recorded no such losses during the years ended December 31, 2019 and 2018. Amortization of debt issuance costs and debt discount and accretion of debt premium, all of which are included in interest expense in the accompanying consolidated statements of operations, for the years ended December 31, 2019, 2018 and 2017 are as follows (in millions): ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 2017 Amortization of deferred issuance costs ā $ 2.4 ā $ 2.4 ā $ 4.0 Accretion of debt premium ā ā ā ā ā (1.1) Amortization of debt discount ā 2.3 ā 2.3 ā 2.1 ā Maturities of long-term debt, excluding finance lease obligations, as of December 31, 2019 are as follows: ā ā ā ā ā Long-term ā Debt ā ā (in millions) 2020 ā $ 22.8 2021 ā 22.8 2022 ā 77.8 2023 ā 2,151.9 ā ā $ 2,275.3 ā As of December 31, 2019, the Company was in compliance with all debt covenants. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | 11. Derivative Instruments and Hedging Activities The Company is exposed to certain risks during the normal course of its business arising from adverse changes in interest rates. The Company selectively uses derivative financial instruments (āderivativesā), including interest rate swaps, to manage interest rate risk. The Company does not hold or issue derivative instruments for speculative purposes. Fluctuations in interest rates can be volatile, and the Companyās risk management activities do not totally eliminate these risks. Consequently, these fluctuations could have a significant effect on the Companyās financial results. ā The Companyās exposure to interest rate risk results primarily from its variable rate borrowings. On May 9, 2018, the Company entered into variable to fixed interest rate swap agreements for a notional amount of $1,361.2 million to hedge a portion of the outstanding principal balance of its variable rate term loan debt. ā As of December 31, 2019, the Company is the fixed rate payor on two interest rate swap contracts that effectively fix the LIBOR-based index used to determine the interest rates charged on the Companyās total long-term debt of $2,283.7 million, not including unamortized debt issuance costs and discounts. These contracts fix approximately 60% of the Companyās term loan variable rate exposure at 2.7% and have an expiration date of May 2021. These swap agreements qualify as hedging instruments and have been designated as cash flow hedges of forecasted LIBOR-based interest payments. As all of the critical terms of each of the derivative instruments matched the underlying terms of the hedged debt and related forecasted interest payments, these hedges were considered highly effective. Based on LIBOR-based swap yield curves as of December 31, 2019, the Company expects to reclassify losses of $14.7 million out of accumulated other comprehensive loss (āAOCLā) into earnings within the next 12 months. The following table summarizes the notional amounts and fair values of the Companyās outstanding derivatives by risk category and instrument type within the consolidated balance sheets as of December 31, 2019 and 2018. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value ā Fair Value ā ā ā ā Accrued ā Other ā ā Notional ā Liabilities ā Non-Current ā Amount ā and Other ā Liabilities Derivatives Designated as Hedging Instruments ā (in millions) Interest rate swap contracts as of December 31, 2019 ā $ 1,337.2 ā $ 14.7 ā $ 6.1 Interest rate swap contracts as of December 31, 2018 ā $ 1,350.9 ā $ 2.6 ā $ 4.0 ā Losses recognized in the consolidated statements of operations for the year ended December 31, 2019 and 2018 total $6.2 million and $4.8 million, respectively. ā Gains and losses on derivatives designated as cash flow hedges included in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2019 and 2018 are shown in the table below. ā ā ā ā ā ā ā ā ā ā Year ended ā ā December 31, ā 2019 2018 Interest rate swap contracts(1) ā (in millions) Loss recorded in AOCL on derivatives, before tax ā $ 13.8 ā $ 6.5 Tax expense (2) ā ā (4.8) ā ā ā Loss reclassified from AOCL into income, net ā ā 9.0 ā ā 6.5 (1) Losses on derivatives reclassified from AOCI into income will be included in āInterest expenseā in the consolidated statements of operations, the same income statement line item as the earnings effect of the hedged item. (2) The Company did not calculate tax expense associated with the derivative activity during the year ended December 31, 2018 due to the pre-tax net loss. For the periods presented, all cash flows associated with derivatives are classified as operating cash flows in the consolidated statements of cash flows. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | 12. Fair Value Measurements The fair values of cash and cash equivalents, receivables and trade payables approximate their carrying values due to the short-term nature of these instruments. For assets and liabilities of a long-term nature, the Company determines fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. The Company applies the following hierarchy in determining fair value: ā Level 1, defined as observable inputs being quoted prices in active markets for identical assets; ā Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and ā Level 3, defined as values determined using models that utilize significant unobservable inputs for which little or no market data exists, discounted cash flow methodologies or similar techniques, or other determinations requiring significant management judgment or estimation. The Companyās derivative instrument is accounted for at fair value on a recurring basis and classified within Level 2 of the valuation hierarchy and was valued at $20.8 million and $6.6 million as of December 31, 2019 and 2018, respectively. The fair value of the derivative instrument is measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curves as of December 31, 2019. The present value calculation uses discount rates that have been adjusted to reflect the credit quality of the Company and its counterparties. The estimated fair value of the Companyās long-term debt is based on dealer quotes considering current market rates for the Companyās credit facility and is classified as Level 2. The ratio of the Companyās aggregate debt balance has trended from quoted market prices in active markets to quoted prices in non-active markets. The fair value of the Companyās long-term debt was valued at $2,220.3 million and $2,093.9 million as of December 31, 2019 and 2018, respectively. Long-term debt fair value does not include debt issuance costs and discounts. There were into out Level 2 3 during ā The Companyās nonfinancial assets such as franchises, property, plant, and equipment, and other intangible assets are not measured at fair value on a recurring basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence that an impairment may exist. When such impairments are recorded, fair values are generally classified within Level 3 of the valuation hierarchy. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity | |
Equity | 13. Equity Initial Public Offering On May 25, 2017, the Company completed an IPO of shares of its common stock, which are listed on the NYSE under the ticker symbol āWOWā. The Company sold 20,970,589 shares of its common stock at a price of $17 per share (including the exercise of the overallotment) for $356.5 million in gross proceeds. The Company incurred costs directly associated with the IPO of $22.5 million, resulting in proceeds from the IPO (net of issuance costs) of $334.0 million. Outstanding shares and per-share amounts disclosed as of December 31, 2018 and for all other comparative periods presented have been retroactively adjusted to reflect the effects of the May 25, 2017, 66,498.762 to 1 stock-split. Common Stock Repurchase Plan The following represents the Companyās purchase of WOW common stock during the years ended December 31, 2019, 2018, and 2017. The shares are reflected as treasury stock in the Companyās consolidated balance sheets. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended ā December 31, ā ā 2019 ā 2018 ā 2017 ā ā ā ā ā ā ā Share buybacks ā 7,098,637 ā 461,173 Income tax withholding 186,786 332,503 ā ā ā 186,786 7,431,140 ā 461,173 ā On December 14, 2017, the Companyās Board of Directors authorized the Company to purchase up to $50.0 million of its outstanding common stock. The Company completed the buyback program on March 26, 2018, with total common stock shares repurchased of 5.1 million. On May 10, 2018, the Companyās Board of Directors authorized the Company to repurchase up to $25.0 million of its outstanding common stock. The Company completed the buyback program on August 8, 2018, with total common stock shares repurchased of 2.5 million. The Company has the authority to re-issue shares repurchased under the buyback programs. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation | |
Stock-Based Compensation | 14. Stock-based Compensation 2017 Omnibus Incentive Plan In connection with the Companyās IPO, the Companyās Board of Directors adopted and approved the 2017 Omnibus Incentive Plan (ā2017 Planā) and cancelled its former management unit equity incentive plan (ā2016 Profit Interest Planā). The 2017 Plan provides for grants of stock options, restricted stock and performance awards. The Companyās directors, officers and other employees and persons who engage in services for the Company are eligible for grants under the 2017 Plan. The purpose of the 2017 Plan is to provide individuals with incentives to maximize stockholder value and otherwise contribute to the Companyās success and to enable the Company to attract, retain and reward the best available persons for positions of responsibility. The 2017 Plan, as amended in 2019, has authorized 12,074,128 shares of the Companyās common stock to be available for issuance, subject to adjustment in the event of a reorganization, stock split, merger or similar change in the Companyās corporate structure or the outstanding shares of common stock. The Companyās Compensation Committee administers the 2017 Plan. The Board of Directors also has the authority to administer the 2017 Plan and to take all actions that the Companyās Compensation Committee is otherwise authorized to take under the 2017 Plan. The terms and conditions of each award made under the 2017 Plan, including vesting requirements, are consistent with the 2017 Plan in a written agreement with the grantee. Employee Grants Senior management that had participated in the 2016 Profit Interest Plan were granted (based on a conversion factor of management units to new common shares) new restricted stock to replace the units that were cancelled in the 2016 Profit Interest Plan. The conversion resulted in grants of 394,052 shares of restricted stock that vest ratably at 33% per year beginning on June 30, 2018 assuming the award recipient continues to be employed by the Company. Senior management also received 450,356 shares of restricted stock in connection with long-term incentive compensation under the 2017 Plan. These restricted stock grants vest ratably at 33% per year beginning on June 30, 2018 assuming the award recipient continues to be employed by the Company. Employees that had participated in the 2016 Director Appreciation Rights Plan were granted new restricted stock (based on a conversion factor of the then calculated value of such pool). These employees were granted 78,050 shares of restricted stock under the 2017 Plan that vest ratably at 33% per year beginning on June 30, 2018 assuming the award recipient continues to be employed by the Company. Each year, the Companyās Compensation Committee, in consultation with the Companyās Chief Executive Officer (āCEOā), establishes an annual incentive bonus plan. In 2017, the 2017 Management Bonus Plan (ā2017 MBPā) was initially established, which provided for incentive cash bonuses for the majority of the Companyās employees based upon the achievement of certain business and individual or department objectives, including most prominently adjusted consolidated earnings before interest, tax, depreciation and amortization. Target bonus payouts were established based on a percentage of the participantās base salary based on the title/position. In connection with the Companyās IPO, the Compensation Committee, in consultation with the Companyās CEO, replaced the 2017 MBP with an equity compensation plan, and granted restricted shares out of the 2017 Plan in lieu of any cash bonus payments. The Compensation Committee granted restricted shares equal to 100% to 150% achievement of the 2017 MBP. Such grants in aggregate totaled 866,708 shares, which vested 100% on June 30, 2018 assuming the participant was employed by the Company at that time. Furthermore, the members of the Companyās Board of Directors received 54,361 shares, in aggregate, of restricted stock that vested 100% on June 30, 2018. In connection with the hiring of the Companyās new CEO, the Company granted 171,233 shares of restricted stock that vest ratably over a four year period beginning December 14, 2018. The following table summarizes the restricted stock award activity for the years ended December 31, 2019 and 2018. ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā 2019 ā 2018 ā ā ā ā Weighted Average ā ā ā Weighted Average ā ā Shares Grant Price ā Shares ā Grant Price Outstanding, beginning of period 2,356,418 ā $ 9.23 ā 1,914,570 ā $ 16.82 Granted 2,075,455 ā ā 8.41 2,116,546 ā ā 7.78 Vested ā (825,764) ā 9.84 (1,242,930) ā 17.08 Forfeited (465,941) ā 9.01 ā (431,768) ā 13.19 Outstanding, end of period(1) 3,140,168 ā $ 8.56 2,356,418 ā $ 9.23 (1) The total outstanding non-vested shares of restricted stock awards granted to employees and directors are included in total outstanding shares as of December 31, 2019 and 2018. For restricted stock awards that contain only service conditions for vesting, the Company calculates the award fair value based on the closing stock price on the accounting grant date. For the years ended December 31, 2019, 2018 and 2017 the Company recorded $10.1 million, $13.0 million and $13.4 million of non-cash compensation expense, respectively. The non-cash compensation expense is reflected in selling, general and administrative expense and operating expenses (excluding depreciation and amortization), depending on the recipientsā duties, in the Companyās consolidated statements of operations. Total unrecognized non-cash compensation expense 2016 Profit Interest Plan On February 3, 2016, the former Parent adopted a Profit Interest Plan pursuant to which the Board of former Parent could grant 295,667 Management Incentive Units (āIncentive Unitsā), or approximately 8% of the total outstanding units of former Parent, excluding Incentive Units, to employees, managers, officers, directors, and consultants of the Company or any of its subsidiaries. Incentive Units granted under the 2016 Profit Interests Plan were intended to constitute a āprofits interestā in the former Parent for tax purposes. Generally, these Incentive Units were subject to a combination of time, performance, and market-based vesting conditions. Upon vesting, the award recipient receives a Class D unit in the former Parent. Such Class D units represent a right to a fractional portion of the profits and distributions of former Parent in excess of a āfloor amountā determined in accordance with the Operating Agreement. These D units were cancelled immediately prior to the Companyās IPO. As discussed above, vested Class D units were replaced with shares of restricted stock of the Company based on a specific conversion factor. Additionally, on July 18, 2016, the Company adopted a Director Appreciation Rights Plan (ā2016 Director Planā), in which 10% of the aggregate value of the 2016 Profit Interest Plan has been reserved for the 2016 Director Plan. The participants of the 2016 Director Plan were granted non-voting Bonus Units which vested ratably, 25% each anniversary date from grant date and fully vest four years from grant date. These units were replaced with shares of restricted stock of the Company based on a specific conversion factor. The following table summarizes the activity in the Management Units during the year ended December 31, 2017: ā ā ā ā ā ā Class D ā ā Units Outstanding at January 1, 2017 201,696 Vested converted to D units (48,939) Cancelled unvested (152,757) Outstanding at December 31, 2017 ā ā |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | 15. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the difference is expected to reverse. Additionally, the impact on deferred tax assets and liabilities of changes in tax rates is reflected in the financial statements in the period that includes the date of enactment. Revision of Prior Period Financial Statements ā In connection with the preparation of its consolidated financial statements, the Company identified an immaterial error related to the recognition of deferred tax assets related to state bonus depreciation modification in certain states in prior periods. Accordingly, the Company has revised previously reported deferred income taxes, net and income tax benefit for such immaterial error, including the information presented within this note. Refer to Note 21 for further discussion. Income Tax (Expense) Benefit For the years ended December 31, 2019, 2018, and 2017, the Company recorded deferred income tax benefit (expense) as shown below. The tax provision in future periods will vary based on current and future temporary differences, as well as future operating results. ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā 2019 2018 2017 ā (in millions) Current tax (expense) benefit ā ā ā ā ā ā ā ā ā Federal ā $ ā ā $ 8.8 ā $ (5.7) State ā 2.8 ā (1.0) ā (11.9) Total Current ā 2.8 ā 7.8 ā (17.6) Deferred tax (expense) benefit ā ā ā ā ā ā ā ā ā Federal ā (8.1) ā 44.8 ā 179.6 State ā 3.8 ā 12.5 ā (3.7) Total Deferred ā (4.3) ā 57.3 ā 175.9 Income tax (expense) benefit, net ā $ (1.5) ā $ 65.1 ā $ 158.3 ā The Company reported total income tax expense of $1.5 million, and total income tax benefit of $65.1 million, and $158.3 million during the years ended December 31, 2019, 2018 and 2017, respectively. The Companyās effective tax rate differs from that derived by applying the applicable federal income tax rate of 21% for the years ended December 31, 2019 and 2018 and 35% for the year ended December 31, 2017, as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā 2019 2018 2017 ā ā (in millions) Statutory federal income taxes ā $ (8.0) ā $ 32.0 ā $ (9.5) State income taxes ā (2.1) ā 11.9 ā (1.6) Uncertain tax positions ā 3.7 ā (0.1) ā (3.2) Tax status & tax rate change ā 0.9 ā 1.3 ā 4.0 Other true-ups ā ā 0.8 ā ā 1.0 ā ā 1.2 Equity compensation ā ā (0.3) ā ā (1.9) ā ā ā Other permanent differences ā (0.4) ā (0.3) ā (0.5) Goodwill impairment ā ā ā ā ā (11.2) ā ā (35.1) Corporate Tax Reform ā ā ā ā ā ā ā ā 103.4 Change in valuation allowance ā 3.9 ā 32.4 ā 99.6 Income tax benefit, net ā $ (1.5) ā $ 65.1 ā $ 158.3 ā The $3.9 million change in valuation allowance as of December 31, 2019, is related to increases in state indefinite lived deferred tax assets related to net operating loss carryforwards and state bonus depreciation modification. Income tax benefit for the year ended December 31, 2017 was recognized primarily as a result of the enactment of Tax Reform in December 2017. Among other things, the primary provisions of Tax Reform impacting the Company are the reductions to the U.S. corporate income tax rate from 35% to 21% and temporary 100% bonus depreciation for certain assets. The change in tax law required the Company to re-measure existing net deferred tax liabilities using the lower rate in the period of enactment resulting in an income tax benefit of approximately $103.4 million to reflect these changes in the year ended December 31, 2017. The $99.6 million change in valuation allowance is comprised of a deferred tax benefit of $22.1 million as a result of re-measuring to the new corporate rate while the remaining deferred tax benefit is related to 2017 pretax book income activity. In total the re-measurement related to Corporate Tax Reform is $125.5 million, which was recorded in the year ended December 31, 2017. ā Deferred Tax Liabilities ā The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are as follows. ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā (in millions) Non-current deferred income tax (assets) liabilities: ā ā ā ā ā ā Allowances and other reserves ā $ (6.8) ā $ (7.1) Net operating loss carryforwards ā (203.7) ā (172.8) Depreciation and amortization ā 183.9 ā 140.5 Franchise operating rights ā 202.0 ā 204.7 Interest hedging ā ā (4.8) ā ā ā Debt issuance costs ā ā 2.5 ā ā 3.2 State income tax ā ā (0.9) ā ā (1.9) Other ā (6.4) ā (4.1) Valuation allowance ā 26.7 ā 30.4 Total net deferred tax liabilities ā $ 192.5 ā $ 192.9 ā Valuation Allowance In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. In evaluating the need for a valuation allowance, management takes into account various factors, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. On the basis of this evaluation, a valuation allowance of $26.7 million and $30.4 million, as of December 31, 2019 and 2018, respectively, has been recorded to recognize only the portion of the deferred tax asset that is more likely than not to be realized. ā Net Operating Loss Carryforwards ā As of December 31, 2019, the Company had approximately $850.0 million of federal tax net operating loss carryforwards. Of the federal tax net operating loss carryforwards, $197.4 million are indefinite lived and $652.6 million expire between the years 2025 through 2036. In addition, as of December 31, 2019, the Company had state tax net operating loss carryforwards of $931.0 million, of which $158.4 million are indefinite lived and $772.6 million expire between 2020 and 2038. As a result of the IPO (effective May 25, 2017), the Company experienced an āownership changeā as defined in Section 382 of the Internal Revenue Code; resulting in limitations on the Companyās use of its existing federal and state net operating losses and capital losses. After December 31, 2019, $652.6 million of the Companyās federal tax loss carryforwards are subject to Section 382 and other restrictions. Pursuant to these restrictions, the Company estimates the entire balance of federal tax loss carryforwards should become unrestricted and available for use since the limitation amounts accumulate for future use to the extent they are not utilized in any given year. The Company believes its loss carryforwards should become fully available to offset future taxable income resulting in no significant impact on future operating cash flows. $646.0 million of the Companyās state loss carryforwards are subject to similar limitations on their future use. If the Company was to experience another āownership changeā in the future, its ability to use its loss carryforwards could be subject to further limitations. Uncertain Tax Positions ā These uncertain tax positions, if ever recognized in the financial statements, would be recorded in the consolidated statements of operations as part of the income tax provision. A reconciliation of the beginning and ending amount of unrecognized tax benefits, exclusive of interest and penalties, included in other non-current liabilities on the accompanying consolidated balance sheets of the Company is as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā 2019 2018 2017 ā ā (in millions) Unrecognized tax benefitsāJanuary 1st ā $ 28.0 ā $ 30.9 ā $ 31.5 Gross increasesātax positions in prior period ā ā ā ā ā 3.8 Gross decreasesātax positions in prior period ā (12.8) ā (2.9) ā (2.6) Gross increasesātax positions in current period ā ā ā ā ā 14.2 Settlements ā (3.8) ā ā ā (1.2) Gross change related to Tax Reform ā ā ā ā ā ā ā ā (14.8) Unrecognized tax benefitsāDecember 31st ā $ 11.4 ā $ 28.0 ā $ 30.9 ā As of December 31, 2019 the Company recorded gross unrecognized tax benefits of $11.4 million, all of which, if recognized, would affect the Companyās effective tax rate. The Company recognizes interest and penalties accrued on uncertain income tax positions as part of the income tax provision. Interest and penalties included in other long-term liabilities on the accompanying consolidated balance sheets of the Company were $1.0 million, $1.9 million, and $1.4 million for years ended December 31, 2019, 2018 and 2017, respectively. The Company does not expect any amount The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. No tax years for the Company are currently under examination by the IRS or state and local tax authorities for income tax purposes. Generally the Companyās 2016 through 2019 tax years remain open for examination and assessment. The Companyās short period return dated April 1, 2016 remains subject to examination and assessment. Years prior to 2016 remain open solely for purposes of examination of the Companyās loss and credit carryforwards. The Company is not currently under examination, but does have open tax controversy matters with state taxing authorities. Activity related to state and local controversy matters did not have a material impact on our consolidated financial position or results of operations during the year ended December 31, 2019, nor do we anticipate a material impact in the future. |
Earnings (Loss) per Common Shar
Earnings (Loss) per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings (Loss) per Common Share | |
Earnings (Loss) per Common Share | 16. Earnings (Loss) per Common Share ā Basic earnings or loss per share attributable to the Companyās common stockholders is computed by dividing net earnings or loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings or loss per share attributable to common stockholders presents the dilutive effect, if any, on a per share basis of potential common shares (such as restricted stock units) as if they had been vested or converted during the periods presented. No such items were included in the computation of diluted loss per share for the year ended December 31, 2018 because the Company incurred a net loss in the period and the effect of inclusion would have been anti-dilutive. All of the shares outstanding and per share amounts have been retroactively adjusted to reflect the stock-split in the Companyās consolidated financial statements. ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended ā ā December 31, ā 2019 2018 2017 ā ā (in millions, except share data) Net income (loss) ā $ 36.4 ā $ (87.3) ā $ 185.3 ā ā ā ā ā ā ā ā ā ā Basic weighted-average shares ā 80,713,926 ā 81,808,425 ā 78,778,640 Effect of dilutive securities: ā ā ā ā ā ā Restricted stock awards ā 475,236 ā ā ā 137,306 Diluted weighted-average shares ā 81,189,162 ā 81,808,425 ā 78,915,946 ā ā ā ā ā ā ā ā ā ā Basic net income (loss) per share ā $ 0.45 ā $ (1.07) ā $ 2.35 Diluted net income (loss) per share ā $ 0.45 ā $ (1.07) ā $ 2.35 ā |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits | |
Employee Benefits | 17. Employee Benefits 401(k) Savings Plan The Company adopted a defined contribution retirement plan which complies with Section 401(k) of the IRC. Substantially all employees are eligible to participate in the plan. The Company matches 100% of the participantās voluntary contributions up to 3% and 50% of the next 2% Deferred Compensation Plan In July 2007, the Company implemented a deferred compensation plan. Under this plan, certain members of management and other highly compensated employees may elect to defer a portion of their annual compensation, subject to certain percentage limitations. The assets and liabilities of the plan are included within the Companyās financial statements. The assets of the plan are specifically designated as available to the Company solely for the purpose of paying benefits under the Companyās deferred compensation plan. However, in the event the Company became insolvent, the investments would be available to all unsecured general creditors. The deferred compensation liability relates to obligations due to participants under the plan. The assets from the participant deferrals are invested by the Company, through a life insurance investment vehicle, in mutual funds and money market funds. The deferred compensation liability represents accumulated net participant deferrals and earnings thereon based on participant investment elections. The assets and liabilities are recorded at fair value, and any adjustments to the fair value are recorded in the consolidated statements of operations. The assets and liabilities of the plan are included in the accompanying consolidated balance sheets as follows: ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (in millions) Prepaid expenses and other (current assets) ā $ 1.7 ā $ 1.5 Accrued liabilities and other (current liabilities) ā $ 1.7 ā $ 1.5 ā |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | 18. Commitments and Contingencies The following items are not included as contractual obligations due to the various factors discussed below. However, the Company incurs these costs as part of its operations: ā The Company rents utility poles used in its operations. Generally, pole rentals are cancellable on short notice, but the Company anticipates that such rentals will recur. Rent expense for pole rental attachments was $9.1 million, $8.5 million and $7.3 million for the years ended December 31, 2019, 2018 and 2017, respectively. ā The Company pays franchise fees under multi-year franchise agreements based on a percentage of revenues generated from video service per year. Franchise fees and other franchise-related costs included in the accompanying statements of operations were $22.8 million, $24.3 million and $24.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. Programming Contracts In the normal course of business, the Company enters into numerous contracts to purchase programming content for which the payment obligations are fully contingent on the number of subscribers to whom it provides the content. The terms of the contracts typically have annual rate increases and expire through 2024. The Companyās programming expenses will continue to increase, more so to the extent the Company grows its Video subscriber base. Programming expenses are included in operating expenses in the accompanying consolidated statements of operations. Legal and Other Contingencies In June and July of 2018, putative class action complaints were filed in the Supreme Court of the State of New York and Colorado State Court against WOW and certain of the Companyās current and former officers and directors, as well as Crestview, Avista, and each of the underwriter banks involved with the Companyās IPO. The complaints allege violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 in connection with the IPO. The plaintiffs seek to represent a class of stockholders who purchased stock pursuant to or traceable to the IPO. The complaint seeks unspecified monetary damages and other relief. The Company believes the complaint and allegations to be without merit and intends to vigorously defend itself against these actions. The Colorado actions have been stayed while the New York cases have been consolidated with the court staying discovery until after a determination has been made with respect to the Companyās Motion to Dismiss. The Company is unable at this time to determine whether the outcome of the litigation would have a material impact on the Companyās financial position, results of operations or cash flows. ā On March 7, 2018, Sprint Communications Company L.P (āSprintā) filed complaints in the U.S. District Court for the District of Delaware alleging that the Company (and other industry participants) infringed patents purportedly relating to Sprintās Voice over Internet Protocol (āVoIPā) services. The lawsuit is part of a pattern of litigation that was initiated as far back as 2007 by Sprint against numerous broadband and telecommunications providers. The Company has multiple legal and contractual defenses and will vigorously defend against the claims. The Company is unable at this time to determine whether the outcome of the litigation would have a material impact on the Companyās financial position, results of operations or cash flows. The Company is party to various legal proceedings (including individual, class and putative class actions) arising in the normal course of its business covering a wide range of matters and types of claims including, but not limited to, general contracts, billing disputes, rights of access, programming, taxes, fees and surcharges, consumer protection, trademark and patent infringement, employment, regulatory, tort, claims of competitors and disputes with other carriers. In accordance with GAAP, the Company accrues an expense for pending litigation when it determines that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. Legal defense costs are expensed as incurred. None of the Companyās existing accruals for pending matters is material. The Company consistently monitors its pending litigation for the purpose of adjusting its accruals and revising its disclosures accordingly, in accordance with GAAP, when required. However, litigation is subject to uncertainty, and the outcome of any particular matter is not predictable. The Company will vigorously defend its interest for pending litigation, and the Company believes that the ultimate resolution of all such matters, after considering insurance coverage or other indemnities to which it is entitled, will not have a material adverse effect on its consolidated financial position, results of operations, or cash flows. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | |
Related Party Transactions | 19. Related Party Transactions Prior to the Companyās IPO, the Company paid a quarterly management fee of $0.4 million plus travel and miscellaneous expenses, if any, to Avista and Crestview, majority owners of the Companyās former Parent. In addition, pursuant to a consulting agreement dated as of December 18, 2015 by and among the Companyās former Parent, Avista and Crestview, Crestview was entitled to 50% of any management fee actually received by Avista. The obligation to pay this fee terminated in connection with the IPO, and as such, no fees have been paid during the periods following the IPO. The management fee paid by the Company for the year ended December 31, 2017 amounted to $1.0 million. During the year ended December 31, 2017, the Companyās former Parent bought back vested Class A and Class B units from certain former employees of the Company. The former employees had the option to sell their units at a price set by the Companyās former Parent or decline such offer. The cash proceeds used to repurchase such units were contributed down to the Company and reflected as such. The Company repurchased 415,494 of Class A units and 243,270 of Class B units for $8.8 million. As a result of the Companyās IPO, the Class A and Class B shares were converted to common shares of the Company. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information (Unaudited) | |
Quarterly Financial Information (Unaudited) | 20. Quarterly Financial Information (Unaudited) The following tables summarize the Companyās selected quarterly financial information for the years ended December 31, 2019 and 2018. Net income and basic and dilutive earnings (loss) per share have been revised for certain periods presented, with the exception of the fourth quarter of 2019, for an immaterial error as explained in Note 21. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, 2019 ā ā First ā Second ā Third ā Fourth ā Quarter(1) Quarter(2) Quarter(1) Quarter(3)(4) ā ā (in millions, except per share data) Revenue ā $ 287.2 ā $ 289.7 ā $ 285.4 ā $ 283.5 Income from operations ā $ 46.2 ā $ 47.0 ā $ 46.7 ā $ 36.5 Net income ā $ 8.4 ā $ 9.7 ā $ 11.4 ā $ 6.9 Basic earnings per share ā $ 0.10 ā $ 0.12 ā $ 0.14 ā $ 0.08 Dilutive earnings per share ā $ 0.10 ā $ 0.12 ā $ 0.14 ā $ 0.08 (1) Includes an increase of $0.2 million to net income for the revision of income tax expense in prior period quarterly financial statements. The effect of the adjustment did not impact basic and dilutive earnings per share. (2) Includes an increase of $0.3 million to net income for the revision of income tax expense in prior period quarterly financial statements. The effect of the adjustment did not impact basic and dilutive earnings per share. (3) Includes non-cash impairment charges of $9.7 million. (4) Includes out-of-quarter adjustments of a $1.5 million decrease of regulatory revenue due to a change in contract terms which occurred during the first quarter of 2019, and a $3.4 million increase in depreciation expense related to assets which were placed in service during the first three quarters of 2019. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, 2018 ā ā First ā Second ā Third ā Fourth ā Quarter(5)(6) Quarter(6) Quarter(7) Quarter(6) ā ā (in millions, except per share data) Revenue ā $ 285.5 ā $ 291.3 ā $ 291.6 ā $ 285.4 Income (loss) from operations ā $ (174.7) ā $ 47.9 ā $ 57.1 ā $ 48.1 Net income (loss) ā $ (161.2) ā $ 25.4 ā $ 31.4 ā $ 17.1 Basic earnings (loss) per share ā $ (1.91) ā $ 0.31 ā $ 0.39 ā $ 0.21 Dilutive earnings (loss) per share ā $ (1.91) ā $ 0.31 ā $ 0.38 ā $ 0.21 (5) Includes non-cash impairment charges of $216.3 million. (6) Includes an increase of $0.8 million to net income (loss) for the revision of income tax benefit in prior period quarterly financial statements. The effect of the adjustment on basic and dilutive earnings (loss) per share is an increase of $0.01 per share. (7) Includes an increase of $0.9 million to net income (loss) for the revision of income tax benefit in prior period quarterly financial statements. The effect of the adjustment on basic and dilutive earnings (loss) per share is an increase of $0.01 per share. ā |
Revision of Prior Period Financ
Revision of Prior Period Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Revision of Prior Period Financial Statements | |
Revision of Prior Period Financial Statements | ā 21. Revision of Prior Period Financial Statements As discussed in Note 1, the Company revised certain prior period financial statements for an immaterial error related to the recognition of deferred tax assets associated with state bonus depreciation modification in certain states. A summary of revisions to the Companyās previously reported financial statements presented herein for comparative purposes is included below. ā Revised Consolidated Balance Sheets ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2018 ā ā As Reported Adjustment ā As Revised ā ā (in millions) Liabilities and Stockholdersā Deficit ā Deferred income taxes, net ā $ 201.4 ā $ (8.5) ā $ 192.9 Total liabilities ā 2,709.9 (8.5) ā ā 2,701.4 Accumulated deficit ā (519.3) ā 8.5 ā ā (510.8) Total stockholdersā deficit ā (290.3) ā 8.5 ā ā (281.8) Total liabilities and stockholdersā deficit ā $ 2,419.6 $ ā ā $ 2,419.6 ā Revised Consolidated Statements of Operations ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā ā 2018 ā 2017 ā As Reported Adjustment ā As Revised As Reported Adjustment ā As Revised ā ā (in millions) Income tax benefit $ 61.8 $ 3.3 $ 65.1 $ 157.2 $ 1.1 $ 158.3 Net income (loss) ā $ (90.6) ā $ 3.3 ā $ (87.3) ā $ 184.2 ā $ 1.1 ā $ 185.3 Basic earnings (loss) per share ā $ (1.11) ā $ ā ā $ (1.07) ā $ 2.34 ā ā ā ā $ 2.35 Dilutive earnings (loss) per share ā $ (1.11) ā $ ā ā $ (1.07) ā $ 2.34 ā ā ā ā $ 2.35 ā Revised Consolidated Statements of Comprehensive Income (Loss) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā ā 2018 ā 2017 ā ā As Reported ā Adjustment ā As Revised ā As Reported ā Adjustment ā As Revised ā (in millions) Net income (loss) $ (90.6) $ 3.3 $ (87.3) $ 184.2 $ 1.1 $ 185.3 Comprehensive income (loss) ā $ (97.1) ā $ 3.3 ā $ (93.8) ā $ 184.2 ā $ 1.1 ā $ 185.3 ā Revised Statement of Stockholdersā Deficit ā ā ā ā ā ā ā ā ā ā ā ā ā As Reported ā Adjustment ā As Revised ā ā (in millions) Accumulated deficit at January 1, 2017 ā $ (622.0) ā $ 4.1 ā $ (617.9) Net income for the year ended December 31, 2017 ā ā 184.2 ā ā 1.1 ā ā 185.3 Accumulated deficit at December 31, 2017 ā ā (437.8) ā ā 5.2 ā ā (432.6) Net loss for the year ended December 31, 2018 ā ā (90.6) ā ā 3.3 ā ā (87.3) Accumulated deficit at December 31, 2018 ā ā (519.3) ā ā 8.5 ā ā (510.8) Total Stockholders' Deficit at January 1, 2017 $ (680.1) $ 4.1 $ (676.0) Total Stockholders' Deficit at December 31, 2017 ā $ (141.8) ā $ 5.2 ā $ (136.6) Total Stockholders' Deficit at December 31, 2018 ā $ (290.3) ā $ 8.5 ā $ (281.8) ā Revised Statement of Cash Flows ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā ā 2018 ā 2017 ā ā As Reported ā Adjustment ā As Revised ā As Reported ā Adjustment ā As Revised ā ā (in millions) Net income (loss) $ (90.6) $ 3.3 $ (87.3) $ 184.2 $ 1.1 $ 185.3 Deferred income taxes ā $ (54.0) ā $ (3.3) ā $ (57.3) ā $ (174.8) ā $ (1.1) ā $ (175.9) ā |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
General Information | |
Basis of Presentation | Basis of Presentation ā The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the rules and regulations of the Securities and Exchange Commission (the āSECā). ā These accounting principles require management to make assumptions and estimates that affect the reported amounts and disclosures of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts and disclosures of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances. However, due to the inherent uncertainties in making estimates, actual results could differ from those estimates. Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation with no effect on the Companyās previously reported results of operations, financial position, or cash flows. ā Revision of Prior Period Financial Statements ā In connection with the preparation of its consolidated financial statements, the Company identified an immaterial error related to the recognition of deferred tax assets related to state bonus depreciation modification in certain states in prior periods. In accordance with SEC Staff Accounting Bulletins SAB Topic 1.M, āAssessing Materialityā and SAB Topic 1.N āConsidering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statementsā, the Company evaluated the error, considering both quantitative and qualitative factors, and determined (i) that the related impact was immaterial to its financial statements for any prior annual or interim period, (ii) leaving it uncorrected, however, would misstate the current period, and (iii) that correcting the impact of the error in the respective annual or interim periods would be helpful to understanding our results of operations for the year ended December 31, 2019. Accordingly, the Company has revised previously reported financial information for such immaterial error. A summary of revisions to certain previously reported financial information presented herein for comparative purposes is included in Note 21. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements of WOW reflect all transactions of WideOpenWest, Inc. and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. ā Certain employees of WOW participated in equity plans administered by the Companyās former Parent. As the management units from the equity plan were issued from the former Parentās ownership structure, the management unitsā value directly correlated to the results of WOW, as the primary asset of the former Parentās investment in WOW. The management units for the equity plan have been āpushed downā to the Company, as the management units had been utilized as equity-based compensation for WOW management. Immediately prior to the Companyās IPO, these management units were cancelled. See Note 14 ā Stock-based Compensation for further discussion . |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents represent short-term investments consisting of money market funds that are carried at cost, which approximates fair value. The Company considers all short-term investments with an original maturity of three months or less at the date of purchase to be cash equivalents. |
Provision for Doubtful Accounts | Provision for Doubtful Accounts The provision for doubtful accounts and the allowance for doubtful accounts are based on historical trends. The Companyās policy to reserve for potential bad debts is based on the aging of the individual receivables. The Company manages credit risk by disconnecting services to customers who are delinquent, generally after sixty days of delinquency. The individual receivables are written-off after all reasonable efforts to collect the funds have been made. Actual write-offs may differ from the amounts reserved. The following table presents the change in the allowance for doubtful accounts for the years ended December 31: ā ā ā ā ā ā ā ā ā ā 2019 2018 ā ā (in millions) Balance at beginning of year ā $ 7.5 ā $ 5.8 Provision charged to expense ā 16.9 ā 20.2 Accounts written off, net of recoveries ā (16.9) ā (19.7) Other ā ā ā 1.2 Balance at end of year ā $ 7.5 ā $ 7.5 |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and amortization and primarily represent costs associated with the construction of cable transmission and distribution facilities and new service installations at the customer location. Capitalized costs include materials, labor, and certain indirect costs attributable to the capitalization activity. Maintenance and repairs are expensed as incurred. Upon sale or retirement of an asset, the cost and related depreciation and amortization are removed from the related accounts and resulting gains or losses are reflected in operating results. The Company makes judgments regarding the installation and construction activities to be capitalized. The Company capitalizes direct labor associated with capitalizable activities and indirect costs using standards developed from operational data, including the proportionate time to perform a new installation relative to the total installation activities and an evaluation of the nature of the indirect costs incurred to support capitalizable activities. Judgment is required to determine the extent to which indirect costs incurred are related to capitalizable activities. Indirect costs include (i) employee benefits and payroll taxes associated with capitalized direct labor, (ii) direct variable costs of installation and construction, (iii) the direct variable costs of support personnel directly involved in assisting with installation activities, such as dispatchers and (iv) other indirect costs directly attributable to capitalizable activities. Property, plant and equipment are depreciated over the estimated useful life upon being placed into service. Depreciation of property, plant and equipment is calculated on a straight-line basis, over the following estimated useful lives: ā ā ā ā ā ā ā Estimated Useful Asset Category Lives (Years) Office and technical equipment 3 - 10 ā Computer equipment and software 3 ā Customer premise equipment 5 ā Vehicles 5 ā Telephony infrastructure ā 5 - 7 ā Headend equipment 7 ā Distribution facilities 10 ā Building and leasehold improvements 5 - 20 ā ā Leasehold improvements are depreciated over the shorter of the estimated useful lives or lease terms. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets consist primarily of acquired franchise operating rights and goodwill. Franchise operating rights represent the value attributable to agreements with local franchising authorities, which allow access to homes in the public right of way. The Companyās franchise operating rights were acquired through business combinations. The Company does not amortize franchise operating rights as it has determined that they have an indefinite life. Costs incurred in negotiating and renewing franchise operating agreements are expensed as incurred. Franchise related customer relationships represent the value to the Company of the benefit of acquiring the existing cable subscriber base and are amortized over the estimated life of the subscriber base (four years) on a straight-line basis, which is shorter than the economic useful life, which approximates an accelerated method. Goodwill represents the excess purchase price over the fair value of the identifiable net assets acquired in business combinations. |
Asset Impairments | Asset Impairments Significant judgment by management is required to determine estimates and assumptions used in the valuation of property, plant and equipment, intangible assets and goodwill. Long-lived Assets The Company evaluates the recoverability of its long-lived assets whenever events or substantive changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is based on the undiscounted cash flows generated by the underlying asset groups, including estimated future operating results, trends or other determinants of fair value. If the total of the expected future undiscounted cash flows were less than the carrying amount of the asset group, the Company would recognize an impairment charge to the extent the carrying amount of the asset group exceeds its estimated fair value. The Company had no triggering events or impairment of its long-lived assets in any of the periods presented. Franchise Operating Rights The Company evaluates the recoverability of its franchise operating rights at least annually on October 1, or more frequently whenever events or substantive changes in circumstances indicate that the assets might be impaired. The Company evaluates the franchise operating rights for impairment by comparing the carrying value of the intangible asset to its estimated fair value utilizing both quantitative and qualitative methods. Any excess of the carrying value over the fair value would be expensed as an impairment loss. The Company calculates the fair value of franchise operating rights using the multi-period excess earnings method, an income approach, which calculates the value of an intangible asset by discounting its future cash flows. The fair value is determined based on estimated discrete discounted future cash flows attributable to each franchise operating right intangible asset using assumptions consistent with internal forecasts. Assumptions key in estimating fair value under this method include, but are not limited to, revenue and subscriber growth rates (less anticipated customer churn), operating expenditures, capital expenditures (including any build out), market share achieved, contributory asset charge rates, tax rates and discount rate. The discount rate used in the model represents a weighted average cost of capital and the perceived risk associated with an intangible asset such as franchise operating rights. See Note 7 - Franchise Operating Rights & Goodwill for discussion of impairment charges recognized for the years ended December 31, 2019, 2018 and 2017. Goodwill The Company assesses the recoverability of its goodwill at least annually on October 1, or more frequently whenever events or substantive changes in circumstances indicate that the asset might be impaired. The Company may first choose to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company performs a quantitative analysis. The Company may also choose to by-pass the qualitative assessment and proceed directly to the quantitative analysis. In the quantitative analysis, the Company utilizes a discounted cash flow analysis or a market approach to estimate the fair value of goodwill and compares such value to the carrying amount. Any excess of the carrying value of goodwill over the estimated fair value of goodwill would be expensed as an impairment loss. The Company assessed its reporting units as part of its annual analysis on October 1 and determined that it had one reporting unit for purposes of its goodwill analysis. See Note 7 - Franchise Operating Rights & Goodwill for a discussion of impairment charges recognized for the years ended December 31, 2019, 2018 and 2017. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs incurred by the Company are capitalized and amortized over the life of the related debt using the effective interest rate method and are included as a reduction in long-term debt in the accompanying consolidated balance sheets. Amortization of debt issuance costs are included in interest expense on the accompanying consolidated statements of operations. |
Other Noncurrent Assets | Other Noncurrent Assets Other noncurrent assets are comprised primarily of long-term software costs and long-term deferred contract costs. These amounts are recognized as operating expenses or selling, general, and administrative expense over the period of usage. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Carrying amounts reported in the consolidated balance sheets for cash and cash equivalents are carried at fair value. The carrying amounts reported in the consolidated balance sheets for accounts receivable and accounts payable approximate fair value due to their short-term maturities. The fair value of long-term debt is based on the debtās variable rate of interest and the Companyās own credit risk and risk of nonperformance, as required by the GAAP. Certain financial instruments potentially subject the Company to concentrations of credit risk. These financial instruments consist primarily of trade receivables and cash and cash equivalents. The Company places its cash and cash equivalents with high credit quality financial institutions. The Company does not enter into master netting arrangements. The Company periodically assesses the creditworthiness of the institutions with which it invests. The Company does, however, maintain invested balances in excess of federally insured limits; however, the Company has never experienced any losses related to these balances. |
Programming Costs and Deferred Credits | Programming Costs and Deferred Credits Programming is acquired for distribution to subscribers, generally pursuant to multi-year license agreements, with rates typically based on the number of subscribers that receive the programming. These programming costs are included in operating expenses in the month the programming is distributed. Deferred credits consist primarily of incentives received or receivable from cable networks for license of their programming. These incentive payments are deferred to accrued liabilities and other on the consolidated balance sheet and recognized over the term of the related programming agreements as a reduction to programming costs in operating expenses. |
Asset Retirement Obligations | Asset Retirement Obligations The Company accounts for its asset retirement obligations by recognizing a liability for the fair value of a conditional asset retirement obligation when incurred if the fair value of the liability can be reasonably estimated. Certain of the Companyās franchise agreements and leases contain provisions requiring the Company to restore facilities or remove equipment upon the maturity of the franchise or lease agreement. The Company expects to continually renew its franchise agreements. Accordingly, the Company has determined a remote possibility that the Company would be required to incur significant restoration or removal costs related to these franchise agreements in the foreseeable future. An estimated liability, which could be significant, would be recorded in the unlikely event a franchise agreement containing such a provision were no longer expected to be renewed. An estimate of the obligations related to the removal provisions contained in the Companyās lease agreements has been made and recorded in other non-current liabilities in the consolidated balance sheet; however, the amount is not material. |
Revenue Recognition | Revenue Recognition The Company adopted ASC Topic 606, Revenue from Contracts with Customers Revenue Recognition ā Residential and business subscription services revenue consists primarily of monthly recurring charges for HSD, Video, and Telephony services, including charges for equipment rentals and other regulatory fees, and non-recurring charges for optional services, such as pay-per-view, video-on-demand, and other events provided to the customer. Monthly charges for residential and business subscription services are billed in advance and recognized as revenue over the period of time the associated services are provided to the customer. Charges for optional services are generally billed in arrears and revenues are recognized at the point in time when the services are provided to the customer. Residential and business customers may be charged non-recurring upfront fees associated with installation and other administrative activities. Charges for upfront fees associated with installation and other administrative activities are initially recorded as unearned service revenue and recognized as revenue over the expected period of benefit for residential customers and over the contract term for business customers. The Company is required to pay certain cable franchising authorities an amount based on the percentage of gross revenue derived from Video services. The Company generally passes these fees and other similar regulatory and ancillary fees on to the customer. Revenues from regulatory and other ancillary fees passed on to the customer are reported with the associated service revenue and the corresponding costs are reported as an operating expense. ā The Companyās trade receivables are subject to credit risk, as customer deposits are generally not required. The Companyās credit risk is limited due to the large number of customers, individually small balances and short payment terms. The Company manages credit risk by screening applicants through the use of internal customer information, identification verification tools and credit bureau data. If a customer account is delinquent, various measures are used to collect amounts owed, including termination of the customerās service. |
Costs and Expenses | Costs and Expenses The Companyās expenses consist of operating, selling, general and administrative expenses, depreciation and amortization expense and interest expense. During the year ended December 31, 2019, the Company received business interruption insurance proceeds as a result of Hurricane Michael; the receipt of which is recorded to operating expense in the statements of operations. |
Advertising Costs | Advertising Costs The cost of advertising is expensed as incurred and is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. Advertising expense during the years ended December 31, 2019, 2018 and 2017 was $33.6 million, $31.2 million and $23.3 million, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the difference is expected to reverse. Additionally, the impact of changes in the tax rates and laws on deferred taxes, if any, is reflected in the financial statements in the period of enactment. Valuation allowances are established to reduce deferred tax assets to the amount that will more likely than not be realized. To the extent that a determination was made to establish or adjust a valuation allowance, the expense or benefit is recorded in the period in which the determination is made. ā From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. The Company prepares and files tax returns based on its interpretation of tax laws and regulations. In the normal course of business, the tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax, interest and penalty assessments by these taxing authorities. In determining the Companyās income tax provision for financial reporting purposes, the Company establishes a reserve for uncertain income tax positions unless such positions are determined to be more likely than not of being sustained upon examination, based on their technical merits. That is, for financial reporting purposes, the Company only recognizes tax benefits taken on the tax return that the Company believes are more likely than not of being sustained upon examination. There is considerable judgment involved in determining whether positions taken on the tax return are more likely than not of being sustained. The Company adjusts its tax reserve estimates periodically because of ongoing examinations by, and settlements with, the various taxing authorities, as well as changes in tax laws, regulations and interpretations. The consolidated income tax provision of any given year includes adjustments to prior year income tax accruals that are considered appropriate and any related estimated interest and penalties. The Companyās policy is to recognize, when applicable, interest and penalties on uncertain income tax positions as part of income tax provision. |
Derivative Financial Instruments | Derivative Financial Instruments The Company may use derivative financial instruments to manage its exposure to fluctuations in interest rates by entering into interest rate exchange agreements such as interest rate swaps. All derivatives, whether designated as a hedge or not, are required to be recorded on the consolidated balance sheet at fair value. If the derivative is designated as a hedge and is highly effective as a hedging instrument, recognition of changes in fair value depend on whether the derivative is used in a fair value hedge, in which changes are recognized in earnings, or cash flow hedge, in which changes are recognized in other comprehensive income. If the derivative is not designated as a hedge, changes in the fair value of the derivative are recognized in earnings. Refer to Note 11 ā Derivative Instruments and Hedging Activities for a discussion of hedging activities for the year ended December 31, 2019. |
Stock-based Compensation | Stock-based Compensation The Companyās stock-based compensation consists of awards of management incentive units (prior to the Companyās IPO) and restricted stock awards (subsequent to the Companyās IPO). Compensation costs associated with these awards are based on the estimated fair value at the date of grant and are recognized over the period in which any related services are provided or when it is probable any related performance condition will be met and distributions are declared. The Company currently does not estimate forfeitures on the restricted stock awards but accounts for forfeitures as they occur. |
Segments | Segments The Companyās chief operating decision maker (āCODMā) regularly reviews the Companyās results to assess the Companyās performance and allocates resources at a consolidated level. Although the consolidated results include the Companyās three products (i) HSD; (ii) Video; and (iii) Telephony and are used to assess performance by product(s), decisions to allocate resources (including capital) are made to benefit the consolidated Company. The three products are delivered through a unified network and have similar types or classes of customers. Furthermore, the decision to allocate resources to plant maintenance and to upgrade the Companyās service delivery over a unified network to the customer benefits all three product offerings and is not based on any given service product. As such, management has determined that the Company has one reportable segment, broadband services. |
Recently Issued Accounting Standards and Recently Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements ASU-2018-15, Customerās Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the Financial Accounting Standards Board (āFASBā) issued Accounting Standards Update (āASUā) 2018-15, Customerās Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (āASU 2018-15ā), which requires a customer in a hosting arrangement that is a service contract to apply the guidance on internal-use software to determine which implementation costs to recognize as an asset and which costs to expense. Costs to develop or obtain internal-use software that cannot be capitalized under Subtopic 350-40, Internal-Use Software, such as training costs and certain data conversion costs, also cannot be capitalized for a hosting arrangement that is a service contract. The amendments require a customer in a hosting arrangement that is a service contract to determine whether an implementation activity relates to the preliminary project stage, the application development stage, or the post-implementation stage. Costs for implementation activities in the application development stage will be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages will be expensed immediately. ASU 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company plans to adopt this guidance prospectively as of January 1, 2020. The adoption will not have a material impact on the Companyās financial position, results of operations or cash flows. ASU 2019-12, Income Taxes āIncome Taxes (Topic 740): Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes (āASU 2019-12ā). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the timing of adopting this guidance and the impact of adoption on its financial position, results of operations and cash flows. Recently Adopted Accounting Pronouncements In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) (āASU 2016-02ā). Under ASU 2016-02, an entity is required to recognize right-of-use (āROUā) assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018 (January 1, 2019 for the Company). ASU 2016-02 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, ASU 2018-10, Codification Improvements to Topic 842, Leases, ASU 2018-11, Targeted Improvements (āASU 2018-11ā) and ASU 2018-20, Narrow-Scope Improvements for Lessors. The Company adopted the new lease standard using the effective date method as of January 1, 2019 as allowed under ASU 2018-11. Consequently, financial information will not be retrospectively restated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company elected the āpackage of practical expedientsā, which permits the Company to not reassess the Companyās prior conclusions about lease identification, lease classification and initial direct costs. Additionally, the Company elected the practical expedient pertaining to land easements, which allows the Company to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under Topic 840. The Company did not elect the use-of-hindsight transition practical expedient. Topic 842 also provides practical expedients for the Companyās ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify, meaning the Company will not recognize right-of-use assets or lease liabilities for existing and new lease agreements that have a lease term of twelve months or less and do not include a purchase option. Additionally, the Company elected the practical expedient to not separate lease and non-lease components for all of its leases, including those for which the Company is a lessee and those for which it is a lessor. Adoption of ASU 2016-02 resulted in the recording of ROU assets and liabilities for the Companyās operating leases of approximately $23.9 million and $25.0 million, respectively, as of January 1, 2019. The difference between the ROU assets and lease liabilities |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Schedule of change in the allowance for doubtful accounts | ā ā ā ā ā ā ā ā ā 2019 2018 ā ā (in millions) Balance at beginning of year ā $ 7.5 ā $ 5.8 Provision charged to expense ā 16.9 ā 20.2 Accounts written off, net of recoveries ā (16.9) ā (19.7) Other ā ā ā 1.2 Balance at end of year ā $ 7.5 ā $ 7.5 |
Schedule of estimated useful lives of property, plant and equipment | ā ā ā ā ā ā ā Estimated Useful Asset Category Lives (Years) Office and technical equipment 3 - 10 ā Computer equipment and software 3 ā Customer premise equipment 5 ā Vehicles 5 ā Telephony infrastructure ā 5 - 7 ā Headend equipment 7 ā Distribution facilities 10 ā Building and leasehold improvements 5 - 20 ā |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contracts with Customers | |
Schedule of revenue by service offering | The following table presents revenue by service offering: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā ā 2019 ā 2018 ā ā Residential ā Business ā Total ā ā Residential ā ā Business ā ā Total ā Subscription Subscription Revenue Subscription Subscription Revenue ā ā (in millions) HSD ā $ 440.7 ā $ 80.3 ā $ 521.0 ā $ 393.6 ā $ 73.5 ā $ 467.1 Video ā 417.4 ā 14.6 ā ā 432.0 ā ā 465.3 ā ā 14.1 ā ā 479.4 Telephony ā 59.9 ā 42.8 ā ā 102.7 ā ā 74.4 ā ā 41.9 ā ā 116.3 Total subscription services revenue ā $ 918.0 ā $ 137.7 ā $ 1,055.7 ā $ 933.3 ā $ 129.5 ā $ 1,062.8 Other business services revenue(1) ā ā ā ā ā ā ā ā 27.4 ā ā ā ā ā ā ā ā 28.1 Other revenue ā ā ā ā ā ā ā ā 62.7 ā ā ā ā ā ā ā ā 62.9 Total revenue ā $ 918.0 ā $ 137.7 ā $ 1,145.8 ā $ 933.3 ā $ 129.5 ā $ 1,153.8 (1) Includes wholesale and colocation revenue of $21.6 million and $21.9 million for the years ended December 31, 2019 and 2018, respectively. |
Schedule of activity and current and non-current costs of obtaining contracts | ā ā ā ā ā ā ā ā ā 2019 2018 ā ā (in millions) Balance at beginning of year ā $ 26.3 ā $ ā Impact of change in accounting policy ā ā ā ā ā 11.4 Deferral ā 22.2 ā 19.0 Amortization ā (7.8) ā (4.1) Balance at end of year ā $ 40.7 ā $ 26.3 ā ā ā ā ā ā ā Current costs of obtaining contracts with customers, end of period ā $ 10.0 ā $ 6.0 Non-current costs of obtaining contracts with customers, end of period ā ā 30.7 ā ā 20.3 Total costs of obtaining contracts with customers, end of period ā $ 40.7 ā $ 26.3 |
Schedule of activity and current and non-current contract liabilities | ā ā ā ā ā ā ā ā ā 2019 2018 ā ā (in millions) Balance at beginning of year ā $ 3.9 ā $ ā Impact of change in accounting policy ā ā ā ā ā 2.1 Deferral ā 16.1 ā 17.5 Revenue recognized ā (15.8) ā (15.7) Balance at end of year ā $ 4.2 ā $ 3.9 ā ā ā ā ā ā ā Current contract liabilities, end of period ā $ 3.6 ā $ 3.3 Non-current contract liabilities, end of period ā ā 0.6 ā ā 0.6 Total contract liabilities, end of period ā $ 4.2 ā $ 3.9 |
Summary of expected revenue to be recognized in future periods related to performance obligations which have not been satisfied or are partially unsatisfied | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā 2020 2021 2022 Thereafter Total ā ā (in millions) Subscription services ā $ 74.5 ā $ 42.5 ā $ 15.5 ā $ 25.3 ā $ 157.8 Other business services ā 3.6 ā 2.2 ā 0.9 ā 0.4 ā 7.1 Total expected revenue ā $ 78.1 ā $ 44.7 ā $ 16.4 ā $ 25.7 ā $ 164.9 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Plant, Property and Equipment, Net | |
Schedule of plant, property and equipment | ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (in millions) Distribution facilities ā $ 1,780.7 ā $ 1,543.3 Customer premise equipment ā 460.1 ā 440.4 Head-end equipment ā 341.2 ā 321.9 Telephony infrastructure ā 97.9 ā 94.8 Computer equipment and software ā 146.4 ā 129.1 Vehicles ā 37.0 ā 36.5 Buildings and leasehold improvements ā 49.5 ā 46.3 Office and technical equipment ā 33.5 ā 32.7 Land ā 6.2 ā 6.2 Construction in progress (including material inventory and other) ā 61.2 ā 157.8 Total property, plant and equipment ā 3,013.7 ā 2,809.0 Less accumulated depreciation ā (1,940.0) ā (1,755.6) ā ā $ 1,073.7 ā $ 1,053.4 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Schedule of lease costs | ā ā ā ā ā ā ā ā ā ā ā Year ended ā ā Classification ā December 31, 2019 ā ā ā ā (in millions) Finance lease cost ā ā ā ā ā Amortization of leased asset ā Depreciation $ 5.3 Interest on lease liabilities ā Interest expense ā ā 0.6 Operating lease cost(1) ā Operating expense ā ā 9.8 Net lease cost ā ā ā $ 15.7 (1) Includes short-term lease and variable costs of $1.6 million for the year ended December 31, 2019. The Company recognized rental expense under operating lease agreements of $9.2 million and $8.8 million for the years ended December 31, 2018 and 2017, respectively. |
Schedule of lease maturities, ASU 2016-02, Finance Leases, | The following table presents aggregate lease maturities as of December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā Finance Leases Operating Leases Total ā ā (in millions) 2020 $ 8.9 ā $ 7.7 ā $ 16.6 2021 ā ā 8.8 ā ā 6.9 ā ā 15.7 2022 ā ā 5.1 ā ā 6.1 ā ā 11.2 2023 ā ā 1.2 ā ā 4.5 ā ā 5.7 2024 ā ā 0.5 ā ā 3.1 ā ā 3.6 Thereafter ā ā ā ā ā 6.8 ā ā 6.8 Total lease payments ā ā 24.5 ā ā 35.1 ā ā 59.6 Less: interest ā ā 1.4 ā ā 5.6 ā ā 7.0 Present value of lease liabilities ā $ 23.1 ā $ 29.5 ā $ 52.6 ā |
Schedule of lease maturities, ASU 2016-02, Operating Leases | The following table presents aggregate lease maturities as of December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā Finance Leases Operating Leases Total ā ā (in millions) 2020 $ 8.9 ā $ 7.7 ā $ 16.6 2021 ā ā 8.8 ā ā 6.9 ā ā 15.7 2022 ā ā 5.1 ā ā 6.1 ā ā 11.2 2023 ā ā 1.2 ā ā 4.5 ā ā 5.7 2024 ā ā 0.5 ā ā 3.1 ā ā 3.6 Thereafter ā ā ā ā ā 6.8 ā ā 6.8 Total lease payments ā ā 24.5 ā ā 35.1 ā ā 59.6 Less: interest ā ā 1.4 ā ā 5.6 ā ā 7.0 Present value of lease liabilities ā $ 23.1 ā $ 29.5 ā $ 52.6 |
Schedule of lease maturities, Finance Leases | The following table presents aggregate lease maturities as of December 31, 2018: ā ā ā ā ā ā ā ā ā ā ā ā Finance Leases Operating Leases Total ā ā (in millions) 2019 $ 1.3 ā $ 7.2 ā $ 8.5 2020 ā ā 1.3 ā ā 5.4 ā ā 6.7 2021 ā ā 1.2 ā ā 4.7 ā ā 5.9 2022 ā ā 0.9 ā ā 4.0 ā ā 4.9 2023 ā ā 0.4 ā ā 2.4 ā ā 2.8 Thereafter ā ā ā ā ā 6.5 ā ā 6.5 Total lease payments ā $ 5.1 ā $ 30.2 ā $ 35.3 ā |
Schedule of lease maturities, Operating Leases | The following table presents aggregate lease maturities as of December 31, 2018: ā ā ā ā ā ā ā ā ā ā ā ā Finance Leases Operating Leases Total ā ā (in millions) 2019 $ 1.3 ā $ 7.2 ā $ 8.5 2020 ā ā 1.3 ā ā 5.4 ā ā 6.7 2021 ā ā 1.2 ā ā 4.7 ā ā 5.9 2022 ā ā 0.9 ā ā 4.0 ā ā 4.9 2023 ā ā 0.4 ā ā 2.4 ā ā 2.8 Thereafter ā ā ā ā ā 6.5 ā ā 6.5 Total lease payments ā $ 5.1 ā $ 30.2 ā $ 35.3 |
Schedule of weighted average remaining lease term and discount rate | ā ā ā ā ā ā ā Year ended ā ā December 31, 2019 ā Weighted-average remaining lease term (in years) ā ā Finance Leases ā 3.0 ā Operating Leases ā 5.6 ā Weighted-average discount rate ā ā ā Finance Leases ā 4.56 % Operating Leases ā 6.21 % |
Schedule of other information related to operating and finance leases | ā ā ā ā ā ā ā ā Year ended ā ā December 31, 2019 ā ā ā (in millions) Cash paid for amounts included in the measurement of lease liabilities: ā ā Operating cash flows from operating leases ā $ ā Operating cash flows from finance leases ā ā 0.6 Financing cash flows from finance leases ā ā 5.0 Right-of-use assets obtained in exchange for lease obligations: ā ā ā Finance leases ā ā 23.5 Operating leases ā ā 10.8 |
Franchise Operating Rights & _2
Franchise Operating Rights & Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Franchise Operating Rights & Goodwill | |
Schedule of changes in the carrying amounts of franchise operating rights and goodwill | ā ā ā ā ā ā ā ā ā ā ā ā ā January 1, ā ā ā December 31, ā 2019 Impairment 2019 ā ā (in millions) Franchise operating rights ā $ 809.2 ā $ (9.7) ā $ 799.5 Goodwill ā 408.8 ā ā ā 408.8 ā ā $ 1,218.0 ā $ (9.7) ā $ 1,208.3 ā ā ā ā ā ā ā ā ā ā ā ā ā January 1, ā ā ā December 31, ā 2018 Impairment 2018 ā ā (in millions) Franchise operating rights ā $ 952.4 ā $ (143.2) ā $ 809.2 Goodwill ā 481.9 ā (73.1) ā 408.8 ā ā $ 1,434.3 ā $ (216.3) ā $ 1,218.0 |
Intangible Assets Subject to _2
Intangible Assets Subject to Amortization (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets Subject to Amortization | |
Schedule of intangible assets subject to amortization consist primarily of customer relationships and changes in the carrying amounts | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā January 1, ā ā ā ā ā ā ā December 31, ā 2019 Acquisitions Amortization 2019 ā ā (in millions) Customer relationships ā $ 1.5 ā $ ā ā $ (1.0) ā $ 0.5 Other ā 2.1 ā 1.1 ā (0.8) ā 2.4 ā ā $ 3.6 ā $ 1.1 ā $ (1.8) ā $ 2.9 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā January 1, ā ā ā ā ā ā ā December 31, ā 2018 Acquisitions Amortization 2018 ā ā (in millions) Customer relationships ā $ 2.5 ā $ ā ā $ (1.0) ā $ 1.5 Other ā 3.0 ā 0.4 ā (1.3) ā 2.1 ā ā $ 5.5 ā $ 0.4 ā $ (2.3) ā $ 3.6 |
Schedule of amortization expenses of the intangible assets | Scheduled amortization of the Companyās intangible assets as of December 31, 2019 for the next five years is as follows (in millions): ā ā ā ā 2020 $ 0.9 2021 ā 0.4 2022 ā 0.4 2023 ā 0.3 2024 ā 0.3 Thereafter ā 0.6 ā ā $ 2.9 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities and Other | |
Schedule of accrued liabilities and other | ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (in millions) Programming costs ā $ 33.4 ā $ 35.4 Franchise and revenue sharing fees ā 10.9 ā 12.0 Payroll and employee benefits ā 20.8 ā 19.7 Property, income, sales and use taxes ā 2.4 ā 7.4 Utility pole rentals ā 3.4 ā 2.5 Interest rate swaps ā 14.7 ā 2.6 Other accrued liabilities ā 10.0 ā 13.6 ā ā $ 95.6 ā $ 93.2 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt and Finance Leases | |
Summary of long-term debt and finance leases | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā ā December 31, 2019 ā 2018 ā Available ā ā ā ā ā borrowing ā Effective ā ā Outstanding ā Outstanding ā ā capacity ā interest rate(1) ā balance balance ā ā (in millions) Long-term debt: ā ā ā ā Term B Loans, net(2) ā $ ā 5.59 % ā $ 2,220.3 ā $ 2,240.9 Revolving Credit Facility(3) ā 239.5 4.73 % ā 55.0 ā 60.0 Total long-term debt ā $ 239.5 ā ā ā 2,275.3 ā 2,300.9 Finance lease obligations ā ā ā 23.1 ā 5.1 Total long-term debt and finance lease obligations ā ā ā 2,298.4 ā 2,306.0 Debt issuance costs, net(4) ā ā ā (8.0) ā (10.5) Sub-total ā ā ā 2,290.4 ā 2,295.5 Less current portion ā ā ā (30.9) ā (24.1) Long-term portion ā ā ā ā $ 2,259.5 ā $ 2,271.4 (1) Represents the effective interest rate in effect for all borrowings outstanding as of the year ended December 31, 2019 pursuant to each debt instrument including the applicable margin. (2) At December 31, 2019 and 2018 includes $8.4 million and $10.6 million of net unamortized discounts, respectively. (3) Available borrowing capacity at December 31, 2019 represents $300.0 million of total availability less borrowings of $55.0 million on the Revolving Credit Facility and outstanding letters of credit of $5.5 million. Letters of credit are used in the ordinary course of business and are released when the respective contractual obligations have been fulfilled by the Company. (4) At December 31, 2019 and 2018, debt issuance costs include $6.0 million and $7.7 million related to Term B Loans and $2.0 million and $2.8 million related to the Revolving Credit Facility, respectively. |
Schedule of amortization of debt issuance costs and accretion of debt premium and discount | Amortization of debt issuance costs and debt discount and accretion of debt premium, all of which are included in interest expense in the accompanying consolidated statements of operations, for the years ended December 31, 2019, 2018 and 2017 are as follows (in millions): ā ā ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 2017 Amortization of deferred issuance costs ā $ 2.4 ā $ 2.4 ā $ 4.0 Accretion of debt premium ā ā ā ā ā (1.1) Amortization of debt discount ā 2.3 ā 2.3 ā 2.1 |
Schedule of maturities of long-term debt, excluding capital lease obligations | Maturities of long-term debt, excluding finance lease obligations, as of December 31, 2019 are as follows: ā ā ā ā ā Long-term ā Debt ā ā (in millions) 2020 ā $ 22.8 2021 ā 22.8 2022 ā 77.8 2023 ā 2,151.9 ā ā $ 2,275.3 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities | |
Schedule of notional amounts, fair values and classification of outstanding derivatives | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value ā Fair Value ā ā ā ā Accrued ā Other ā ā Notional ā Liabilities ā Non-Current ā Amount ā and Other ā Liabilities Derivatives Designated as Hedging Instruments ā (in millions) Interest rate swap contracts as of December 31, 2019 ā $ 1,337.2 ā $ 14.7 ā $ 6.1 Interest rate swap contracts as of December 31, 2018 ā $ 1,350.9 ā $ 2.6 ā $ 4.0 |
Schedule of gains and losses on derivatives | ā ā ā ā ā ā ā ā ā ā Year ended ā ā December 31, ā 2019 2018 Interest rate swap contracts(1) ā (in millions) Loss recorded in AOCL on derivatives, before tax ā $ 13.8 ā $ 6.5 Tax expense (2) ā ā (4.8) ā ā ā Loss reclassified from AOCL into income, net ā ā 9.0 ā ā 6.5 (1) Losses on derivatives reclassified from AOCI into income will be included in āInterest expenseā in the consolidated statements of operations, the same income statement line item as the earnings effect of the hedged item. (2) The Company did not calculate tax expense associated with the derivative activity during the year ended December 31, 2018 due to the pre-tax net loss. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity | |
Schedule of purchase of common stock | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended ā December 31, ā ā 2019 ā 2018 ā 2017 ā ā ā ā ā ā ā Share buybacks ā 7,098,637 ā 461,173 Income tax withholding 186,786 332,503 ā ā ā 186,786 7,431,140 ā 461,173 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation | |
Summary of the restricted stock awards activity | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā 2019 ā 2018 ā ā ā ā Weighted Average ā ā ā Weighted Average ā ā Shares Grant Price ā Shares ā Grant Price Outstanding, beginning of period 2,356,418 ā $ 9.23 ā 1,914,570 ā $ 16.82 Granted 2,075,455 ā ā 8.41 2,116,546 ā ā 7.78 Vested ā (825,764) ā 9.84 (1,242,930) ā 17.08 Forfeited (465,941) ā 9.01 ā (431,768) ā 13.19 Outstanding, end of period(1) 3,140,168 ā $ 8.56 2,356,418 ā $ 9.23 (1) The total outstanding non-vested shares of restricted stock awards granted to employees and directors are included in total outstanding shares as of December 31, 2019 and 2018. |
Summary of activity in the units | ā ā ā ā ā ā Class D ā ā Units Outstanding at January 1, 2017 201,696 Vested converted to D units (48,939) Cancelled unvested (152,757) Outstanding at December 31, 2017 ā |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of income tax benefit (expense) | ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā 2019 2018 2017 ā (in millions) Current tax (expense) benefit ā ā ā ā ā ā ā ā ā Federal ā $ ā ā $ 8.8 ā $ (5.7) State ā 2.8 ā (1.0) ā (11.9) Total Current ā 2.8 ā 7.8 ā (17.6) Deferred tax (expense) benefit ā ā ā ā ā ā ā ā ā Federal ā (8.1) ā 44.8 ā 179.6 State ā 3.8 ā 12.5 ā (3.7) Total Deferred ā (4.3) ā 57.3 ā 175.9 Income tax (expense) benefit, net ā $ (1.5) ā $ 65.1 ā $ 158.3 |
Schedule of reconciliation of income tax provision computed at statutory tax rates to effective tax rate | ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā 2019 2018 2017 ā ā (in millions) Statutory federal income taxes ā $ (8.0) ā $ 32.0 ā $ (9.5) State income taxes ā (2.1) ā 11.9 ā (1.6) Uncertain tax positions ā 3.7 ā (0.1) ā (3.2) Tax status & tax rate change ā 0.9 ā 1.3 ā 4.0 Other true-ups ā ā 0.8 ā ā 1.0 ā ā 1.2 Equity compensation ā ā (0.3) ā ā (1.9) ā ā ā Other permanent differences ā (0.4) ā (0.3) ā (0.5) Goodwill impairment ā ā ā ā ā (11.2) ā ā (35.1) Corporate Tax Reform ā ā ā ā ā ā ā ā 103.4 Change in valuation allowance ā 3.9 ā 32.4 ā 99.6 Income tax benefit, net ā $ (1.5) ā $ 65.1 ā $ 158.3 |
Schedule of components of deferred tax assets and deferred tax liabilities | ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā (in millions) Non-current deferred income tax (assets) liabilities: ā ā ā ā ā ā Allowances and other reserves ā $ (6.8) ā $ (7.1) Net operating loss carryforwards ā (203.7) ā (172.8) Depreciation and amortization ā 183.9 ā 140.5 Franchise operating rights ā 202.0 ā 204.7 Interest hedging ā ā (4.8) ā ā ā Debt issuance costs ā ā 2.5 ā ā 3.2 State income tax ā ā (0.9) ā ā (1.9) Other ā (6.4) ā (4.1) Valuation allowance ā 26.7 ā 30.4 Total net deferred tax liabilities ā $ 192.5 ā $ 192.9 |
Schedule of reconciliation of unrecognized tax benefits | ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā 2019 2018 2017 ā ā (in millions) Unrecognized tax benefitsāJanuary 1st ā $ 28.0 ā $ 30.9 ā $ 31.5 Gross increasesātax positions in prior period ā ā ā ā ā 3.8 Gross decreasesātax positions in prior period ā (12.8) ā (2.9) ā (2.6) Gross increasesātax positions in current period ā ā ā ā ā 14.2 Settlements ā (3.8) ā ā ā (1.2) Gross change related to Tax Reform ā ā ā ā ā ā ā ā (14.8) Unrecognized tax benefitsāDecember 31st ā $ 11.4 ā $ 28.0 ā $ 30.9 |
Earnings (Loss) per Common Sh_2
Earnings (Loss) per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings (Loss) per Common Share | |
Schedule of computation of income per share | ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended ā ā December 31, ā 2019 2018 2017 ā ā (in millions, except share data) Net income (loss) ā $ 36.4 ā $ (87.3) ā $ 185.3 ā ā ā ā ā ā ā ā ā ā Basic weighted-average shares ā 80,713,926 ā 81,808,425 ā 78,778,640 Effect of dilutive securities: ā ā ā ā ā ā Restricted stock awards ā 475,236 ā ā ā 137,306 Diluted weighted-average shares ā 81,189,162 ā 81,808,425 ā 78,915,946 ā ā ā ā ā ā ā ā ā ā Basic net income (loss) per share ā $ 0.45 ā $ (1.07) ā $ 2.35 Diluted net income (loss) per share ā $ 0.45 ā $ (1.07) ā $ 2.35 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits | |
Schedule of assets and liabilities of the plan included in the accompanying combined consolidated balance sheets | ā ā ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā ā (in millions) Prepaid expenses and other (current assets) ā $ 1.7 ā $ 1.5 Accrued liabilities and other (current liabilities) ā $ 1.7 ā $ 1.5 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information (Unaudited) | |
Summary of the company's selected quarterly financial information | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, 2019 ā ā First ā Second ā Third ā Fourth ā Quarter(1) Quarter(2) Quarter(1) Quarter(3)(4) ā ā (in millions, except per share data) Revenue ā $ 287.2 ā $ 289.7 ā $ 285.4 ā $ 283.5 Income from operations ā $ 46.2 ā $ 47.0 ā $ 46.7 ā $ 36.5 Net income ā $ 8.4 ā $ 9.7 ā $ 11.4 ā $ 6.9 Basic earnings per share ā $ 0.10 ā $ 0.12 ā $ 0.14 ā $ 0.08 Dilutive earnings per share ā $ 0.10 ā $ 0.12 ā $ 0.14 ā $ 0.08 (1) Includes an increase of $0.2 million to net income for the revision of income tax expense in prior period quarterly financial statements. The effect of the adjustment did not impact basic and dilutive earnings per share. (2) Includes an increase of $0.3 million to net income for the revision of income tax expense in prior period quarterly financial statements. The effect of the adjustment did not impact basic and dilutive earnings per share. (3) Includes non-cash impairment charges of $9.7 million. (4) Includes out-of-quarter adjustments of a $1.5 million decrease of regulatory revenue due to a change in contract terms which occurred during the first quarter of 2019, and a $3.4 million increase in depreciation expense related to assets which were placed in service during the first three quarters of 2019. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, 2018 ā ā First ā Second ā Third ā Fourth ā Quarter(5)(6) Quarter(6) Quarter(7) Quarter(6) ā ā (in millions, except per share data) Revenue ā $ 285.5 ā $ 291.3 ā $ 291.6 ā $ 285.4 Income (loss) from operations ā $ (174.7) ā $ 47.9 ā $ 57.1 ā $ 48.1 Net income (loss) ā $ (161.2) ā $ 25.4 ā $ 31.4 ā $ 17.1 Basic earnings (loss) per share ā $ (1.91) ā $ 0.31 ā $ 0.39 ā $ 0.21 Dilutive earnings (loss) per share ā $ (1.91) ā $ 0.31 ā $ 0.38 ā $ 0.21 (5) Includes non-cash impairment charges of $216.3 million. (6) Includes an increase of $0.8 million to net income (loss) for the revision of income tax benefit in prior period quarterly financial statements. The effect of the adjustment on basic and dilutive earnings (loss) per share is an increase of $0.01 per share. (7) Includes an increase of $0.9 million to net income (loss) for the revision of income tax benefit in prior period quarterly financial statements. The effect of the adjustment on basic and dilutive earnings (loss) per share is an increase of $0.01 per share. |
Revision of Prior Period Fina_2
Revision of Prior Period Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revision of Prior Period Financial Statements | |
Schedule of Error Corrections and Prior Period Adjustments | Revised Consolidated Balance Sheets ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2018 ā ā As Reported Adjustment ā As Revised ā ā (in millions) Liabilities and Stockholdersā Deficit ā Deferred income taxes, net ā $ 201.4 ā $ (8.5) ā $ 192.9 Total liabilities ā 2,709.9 (8.5) ā ā 2,701.4 Accumulated deficit ā (519.3) ā 8.5 ā ā (510.8) Total stockholdersā deficit ā (290.3) ā 8.5 ā ā (281.8) Total liabilities and stockholdersā deficit ā $ 2,419.6 $ ā ā $ 2,419.6 ā Revised Consolidated Statements of Operations ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā ā 2018 ā 2017 ā As Reported Adjustment ā As Revised As Reported Adjustment ā As Revised ā ā (in millions) Income tax benefit $ 61.8 $ 3.3 $ 65.1 $ 157.2 $ 1.1 $ 158.3 Net income (loss) ā $ (90.6) ā $ 3.3 ā $ (87.3) ā $ 184.2 ā $ 1.1 ā $ 185.3 Basic earnings (loss) per share ā $ (1.11) ā $ ā ā $ (1.07) ā $ 2.34 ā ā ā ā $ 2.35 Dilutive earnings (loss) per share ā $ (1.11) ā $ ā ā $ (1.07) ā $ 2.34 ā ā ā ā $ 2.35 ā Revised Consolidated Statements of Comprehensive Income (Loss) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā ā 2018 ā 2017 ā ā As Reported ā Adjustment ā As Revised ā As Reported ā Adjustment ā As Revised ā (in millions) Net income (loss) $ (90.6) $ 3.3 $ (87.3) $ 184.2 $ 1.1 $ 185.3 Comprehensive income (loss) ā $ (97.1) ā $ 3.3 ā $ (93.8) ā $ 184.2 ā $ 1.1 ā $ 185.3 ā Revised Statement of Stockholdersā Deficit ā ā ā ā ā ā ā ā ā ā ā ā ā As Reported ā Adjustment ā As Revised ā ā (in millions) Accumulated deficit at January 1, 2017 ā $ (622.0) ā $ 4.1 ā $ (617.9) Net income for the year ended December 31, 2017 ā ā 184.2 ā ā 1.1 ā ā 185.3 Accumulated deficit at December 31, 2017 ā ā (437.8) ā ā 5.2 ā ā (432.6) Net loss for the year ended December 31, 2018 ā ā (90.6) ā ā 3.3 ā ā (87.3) Accumulated deficit at December 31, 2018 ā ā (519.3) ā ā 8.5 ā ā (510.8) Total Stockholders' Deficit at January 1, 2017 $ (680.1) $ 4.1 $ (676.0) Total Stockholders' Deficit at December 31, 2017 ā $ (141.8) ā $ 5.2 ā $ (136.6) Total Stockholders' Deficit at December 31, 2018 ā $ (290.3) ā $ 8.5 ā $ (281.8) ā Revised Statement of Cash Flows ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Year ended December 31, ā ā 2018 ā 2017 ā ā As Reported ā Adjustment ā As Revised ā As Reported ā Adjustment ā As Revised ā ā (in millions) Net income (loss) $ (90.6) $ 3.3 $ (87.3) $ 184.2 $ 1.1 $ 185.3 Deferred income taxes ā $ (54.0) ā $ (3.3) ā $ (57.3) ā $ (174.8) ā $ (1.1) ā $ (175.9) |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Markets and segments (Details) | 12 Months Ended |
Dec. 31, 2019item | |
General Information | |
Number of markets in which high-speed data, video, and telephony services are provided | 19 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Bad Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Bad Debt | |||
Period of delinquency after which Company disconnects services to customers | 60 days | ||
Change in the allowance for doubtful accounts | |||
Balance at beginning of year | $ 7.5 | $ 5.8 | |
Provision charged to expense | 16.9 | 20.2 | $ 19.7 |
Accounts written off | (16.9) | (19.7) | |
Other | 1.2 | ||
Balance at end of year | $ 7.5 | $ 7.5 | $ 5.8 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Office and technical equipment | Minimum | |
Estimated Useful Lives | |
Estimated Useful Lives | 3 years |
Office and technical equipment | Maximum | |
Estimated Useful Lives | |
Estimated Useful Lives | 10 years |
Computer equipment and software | |
Estimated Useful Lives | |
Estimated Useful Lives | 3 years |
Customer premise equipment | |
Estimated Useful Lives | |
Estimated Useful Lives | 5 years |
Vehicles | |
Estimated Useful Lives | |
Estimated Useful Lives | 5 years |
Telephony infrastructure | Minimum | |
Estimated Useful Lives | |
Estimated Useful Lives | 5 years |
Telephony infrastructure | Maximum | |
Estimated Useful Lives | |
Estimated Useful Lives | 7 years |
Head-end equipment | |
Estimated Useful Lives | |
Estimated Useful Lives | 7 years |
Distribution facilities | |
Estimated Useful Lives | |
Estimated Useful Lives | 10 years |
Buildings and leasehold improvements | Minimum | |
Estimated Useful Lives | |
Estimated Useful Lives | 5 years |
Buildings and leasehold improvements | Maximum | |
Estimated Useful Lives | |
Estimated Useful Lives | 20 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Intangible Assets and Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets and Goodwill | |||
Estimated life of franchise related customer relationships, based on subscriber base | 4 years | ||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Consolidation and Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Principles of Consolidation and Basis of Presentation | |
Number of operating segments | 1 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Advertising Costs | |||
Advertising expense | $ 33.6 | $ 31.2 | $ 23.3 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Segments (Details) | 12 Months Ended |
Dec. 31, 2019productsegment | |
Segments | |
Number of products | product | 3 |
Number of reportable segments | segment | 1 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2019 |
Accounting Pronouncements | ||
Lease, Practical Expedients, Package | true | |
Lease, Practical Expedient, Land Easement | true | |
Lease, Practical Expedient, Use of Hindsight | false | |
Right-of-use assets | $ 26.5 | |
Lease liability | $ 29.5 | |
Operating Lease, Liability, Statement of Financial Position | us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent | us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent |
ASU 2016-02 | ||
Accounting Pronouncements | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |
New Accounting Pronouncement or Change in Accounting Principle, Prior Period Not Restated | true | |
ASU 2016-02 | Adjustment | ||
Accounting Pronouncements | ||
Right-of-use assets | $ 23.9 | |
Lease liability | $ 25 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Services Length (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Residential Subscription | Minimum | |
Revenue from Contracts with Customers | |
Subscription services, contract term | 12 months |
Business Subscription | |
Revenue from Contracts with Customers | |
Subscription services, contract term | 30 months |
Business Subscription | Maximum | |
Revenue from Contracts with Customers | |
Subscription services, contract term | 24 months |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Revenue by Service Offering (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contracts with Customers | |||||||||||
Other revenue | $ 62.7 | $ 62.9 | |||||||||
Total revenue | $ 283.5 | $ 285.4 | $ 289.7 | $ 287.2 | $ 285.4 | $ 291.6 | $ 291.3 | $ 285.5 | 1,145.8 | 1,153.8 | $ 1,188.1 |
Subscription services | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 1,055.7 | 1,062.8 | |||||||||
HSD | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 521 | 467.1 | |||||||||
Video | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 432 | 479.4 | |||||||||
Telephony | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 102.7 | 116.3 | |||||||||
Other business services | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 27.4 | 28.1 | |||||||||
Other business services - Wholesale and colocation lease revenue | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 21.6 | 21.9 | |||||||||
Residential Subscription | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Total revenue | 918 | 933.3 | |||||||||
Residential Subscription | Subscription services | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 918 | 933.3 | |||||||||
Residential Subscription | HSD | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 440.7 | 393.6 | |||||||||
Residential Subscription | Video | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 417.4 | 465.3 | |||||||||
Residential Subscription | Telephony | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 59.9 | 74.4 | |||||||||
Business Subscription | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Total revenue | 137.7 | 129.5 | |||||||||
Business Subscription | Subscription services | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 137.7 | 129.5 | |||||||||
Business Subscription | HSD | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 80.3 | 73.5 | |||||||||
Business Subscription | Video | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | 14.6 | 14.1 | |||||||||
Business Subscription | Telephony | |||||||||||
Revenue from Contracts with Customers | |||||||||||
Revenue | $ 42.8 | $ 41.9 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Costs of Obtaining Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Costs of Obtaining Contracts with Customers | ||||
Capitalized contract cost, Beginning of period | $ 26.3 | |||
Impact of change in accounting policy | $ 11.4 | |||
Deferral | 22.2 | 19 | ||
Amortization | (7.8) | (4.1) | ||
Capitalized contract cost, End of period | 40.7 | 26.3 | ||
Current costs of obtaining contracts with customers | $ 10 | $ 6 | ||
Non-current costs of obtaining contracts with customers | 30.7 | 20.3 | ||
Total costs of obtaining contracts with customers | $ 26.3 | $ 26.3 | $ 40.7 | $ 26.3 |
Residential Subscription | Minimum | ||||
Costs of Obtaining Contracts with Customers | ||||
Costs of contracts with customers, amortization period | 3 years | |||
Residential Subscription | Maximum | ||||
Costs of Obtaining Contracts with Customers | ||||
Costs of contracts with customers, amortization period | 4 years | |||
Business Subscription | Minimum | ||||
Costs of Obtaining Contracts with Customers | ||||
Costs of contracts with customers, amortization period | 6 years | |||
Business Subscription | Maximum | ||||
Costs of Obtaining Contracts with Customers | ||||
Costs of contracts with customers, amortization period | 7 years |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Costs of Obtaining Contracts with Customers | ||||
Contract liability, Beginning of period | $ 3.9 | |||
Impact of change in accounting policy | $ 2.1 | |||
Deferral | 16.1 | 17.5 | ||
Revenue recognized | (15.8) | (15.7) | ||
Contract liability, End of period | 4.2 | 3.9 | ||
Current portion of contract liabilities | $ 3.6 | $ 3.3 | ||
Non-current portion of contract liabilities | 0.6 | 0.6 | ||
Total contract liabilities | $ 4.2 | $ 3.9 | $ 4.2 | $ 3.9 |
Residential Subscription | ||||
Costs of Obtaining Contracts with Customers | ||||
Contract liability, term of contract | 5 months | |||
Business Subscription | ||||
Costs of Obtaining Contracts with Customers | ||||
Contract liability, term of contract | 30 months |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Unsatisfied Performance Obligations Amount (Details) $ in Millions | Dec. 31, 2019USD ($) |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 164.9 |
Subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 157.8 |
Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 7.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 78.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Residential Subscription | Maximum | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 74.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 3.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 44.7 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 42.5 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 2.2 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 16.4 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 15.5 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 0.9 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 25.7 |
Expected period to recognize revenue of remaining performance obligations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 25.3 |
Expected period to recognize revenue of remaining performance obligations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 0.4 |
Expected period to recognize revenue of remaining performance obligations |
Asset Sales (Details)
Asset Sales (Details) - USD ($) $ in Millions | Aug. 01, 2017 | Jan. 12, 2017 | Jan. 12, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Asset Sales | ||||||
Net proceeds from sale of assets | $ 213 | |||||
Gain (loss) on sale of assets | 38.4 | |||||
Lawrence, Kansas System | ||||||
Asset Sales | ||||||
Period of time in which results are included in financial statements | 12 days | |||||
Network elements related to Construction Services Agreement | Disposal Group Disposed of by Sale, Not Discontinued Operations | ||||||
Asset Sales | ||||||
Gain (loss) on sale of assets | $ 3.3 | $ 2 | $ 0.4 | |||
MidCo | Lawrence, Kansas System | Disposal Group Disposed of by Sale, Not Discontinued Operations | ||||||
Asset Sales | ||||||
Net proceeds from sale of assets | $ 213 | |||||
Gain (loss) on sale of assets | $ 38.4 | |||||
Verizon | Chicago Fiber Network | Disposal Group Disposed of by Sale, Not Discontinued Operations | ||||||
Asset Sales | ||||||
Net proceeds from sale of assets | $ 225 | |||||
Gain (loss) on sale of assets | 93.7 | |||||
Agreement amount for build-out of network | $ 50 |
Plant, Property and Equipment_2
Plant, Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Plant, Property and Equipment, Net | |||
Total plant, property and equipment | $ 3,013.7 | $ 2,809 | |
Less accumulated depreciation | (1,940) | (1,755.6) | |
Plant, Property and Equipment, Net | 1,073.7 | 1,053.4 | |
Depreciation expense | 204.4 | 185.1 | $ 196.2 |
Loss (gain) on write offs or sales of head-end and customer premise equipment | 2.4 | 0.6 | $ 0.6 |
Distribution facilities | |||
Plant, Property and Equipment, Net | |||
Total plant, property and equipment | 1,780.7 | 1,543.3 | |
Customer premise equipment | |||
Plant, Property and Equipment, Net | |||
Total plant, property and equipment | 460.1 | 440.4 | |
Head-end equipment | |||
Plant, Property and Equipment, Net | |||
Total plant, property and equipment | 341.2 | 321.9 | |
Telephony infrastructure | |||
Plant, Property and Equipment, Net | |||
Total plant, property and equipment | 97.9 | 94.8 | |
Computer equipment and software | |||
Plant, Property and Equipment, Net | |||
Total plant, property and equipment | 146.4 | 129.1 | |
Vehicles | |||
Plant, Property and Equipment, Net | |||
Total plant, property and equipment | 37 | 36.5 | |
Buildings and leasehold improvements | |||
Plant, Property and Equipment, Net | |||
Total plant, property and equipment | 49.5 | 46.3 | |
Office and technical equipment | |||
Plant, Property and Equipment, Net | |||
Total plant, property and equipment | 33.5 | 32.7 | |
Land | |||
Plant, Property and Equipment, Net | |||
Total plant, property and equipment | 6.2 | 6.2 | |
Construction in progress (including material inventory and other) | |||
Plant, Property and Equipment, Net | |||
Total plant, property and equipment | $ 61.2 | $ 157.8 |
Leases - Financing leases (Deta
Leases - Financing leases (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Plant, Property and Equipment, Net | ||
Property, plant and equipment, net | $ 1,073.7 | $ 1,053.4 |
Accumulated amortization | (1,940) | $ (1,755.6) |
Finance lease obligations, Current | $ 8.1 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Long-term Debt and Capital Lease Obligations, Current | |
Finance lease obligations, Noncurrent | $ 15 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term Debt and Capital Lease Obligations. | |
Finance leased assets | ||
Plant, Property and Equipment, Net | ||
Property, plant and equipment, net | $ 22.7 |
Leases - Lease cost components
Leases - Lease cost components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lease cost components | |||
Amortization of leased asset | $ 5.3 | ||
Interest on lease liabilities | 0.6 | ||
Operating lease cost | 9.8 | ||
Net lease cost | 15.7 | ||
Short-term lease and variable lease costs | $ 1.6 | ||
Rental expense under operating lease | $ 9.2 | $ 8.8 |
Leases - Aggregate lease maturi
Leases - Aggregate lease maturities 2019 (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Finance Leases | ||
2020 | $ 8.9 | |
2021 | 8.8 | |
2022 | 5.1 | |
2023 | 1.2 | |
2024 | 0.5 | |
Total lease payments, Finance leases | 24.5 | |
Less: Interest | 1.4 | |
Present value of lease liabilities | 23.1 | |
Operating Leases | ||
2020 | 7.7 | |
2021 | 6.9 | |
2022 | 6.1 | |
2023 | 4.5 | |
2024 | 3.1 | |
Thereafter | 6.8 | |
Total lease payments, Operating leases | 35.1 | |
Less: interest | (5.6) | |
Present value of lease liabilities | $ 29.5 | |
Operating Lease, Liability, Statement of Financial Position | us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent | us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent |
Total Finance and Operating Leases | ||
2020 | $ 16.6 | |
2021 | 15.7 | |
2022 | 11.2 | |
2023 | 5.7 | |
2024 | 3.6 | |
Thereafter | 6.8 | |
Total lease payments | 59.6 | |
Less: interest | (7) | |
Present value of lease liabilities | $ 52.6 |
Leases - Aggregate lease matu_2
Leases - Aggregate lease maturities 2018 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Finance Leases | |
2019 | $ 1.3 |
2020 | 1.3 |
2021 | 1.2 |
2022 | 0.9 |
2023 | 0.4 |
Total lease payments, Finance leases | 5.1 |
Operating Leases | |
2019 | 7.2 |
2020 | 5.4 |
2021 | 4.7 |
2022 | 4 |
2023 | 2.4 |
Thereafter | 6.5 |
Total lease payments, Operating leases | 30.2 |
Total Finance and Operating Leases | |
2019 | 8.5 |
2020 | 6.7 |
2021 | 5.9 |
2022 | 4.9 |
2023 | 2.8 |
Thereafter | 6.5 |
Total lease payments | $ 35.3 |
Leases - Weighted average remai
Leases - Weighted average remaining lease term and discount (Details) | Dec. 31, 2019 |
Leases | |
Weighted-average remaining lease term - Finance Leases | 3 years |
Weighted-average remaining lease term - Operating Leases | 5 years 7 months 6 days |
Weighted-average discount rate - Finance Leases | 4.56% |
Weighted-average discount rate - Operating Leases | 6.21% |
Leases - Other information (Det
Leases - Other information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in measurement of lease liabilities: | |
Operating cash flows from finance leases | $ 0.6 |
Financing cash flows from finance leases | 5 |
Right-of-use assets obtained in exchange for lease obligations: Finance leases | 23.5 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | $ 10.8 |
Franchise Operating Rights & _3
Franchise Operating Rights & Goodwill - Franchise Operating Rights and Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Franchise operating rights | |||||
Balance at the beginning of the period | $ 952.4 | $ 809.2 | $ 952.4 | ||
Impairment | (9.7) | (143.2) | $ (14.1) | ||
Balance at the end of the period | $ 799.5 | 799.5 | 809.2 | 952.4 | |
Goodwill | |||||
Balance at the beginning of the period | 481.9 | 408.8 | 481.9 | ||
Impairment | (73.1) | (133.3) | |||
Balance at the end of the period | 408.8 | 408.8 | 408.8 | 481.9 | |
Franchise operating rights and goodwill | |||||
Balance at the beginning of the period | 1,434.3 | 1,218 | 1,434.3 | ||
Impairment | (9.7) | $ (216.3) | (9.7) | (216.3) | (147.4) |
Balance at the end of the period | $ 1,208.3 | $ 1,208.3 | $ 1,218 | $ 1,434.3 |
Franchise Operating Rights & _4
Franchise Operating Rights & Goodwill - Impairment (Details) $ in Millions | Oct. 01, 2019USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Franchise operating rights | ||||
Number of reporting units which franchise operating rights were impaired | item | 2 | |||
Impairment of franchise operating rights | $ 9.7 | $ 143.2 | $ 14.1 | |
Goodwill | ||||
Impairment of goodwill | 73.1 | $ 133.3 | ||
Accumulated impairment | $ 206.4 | $ 206.4 | ||
Newnan, GA | ||||
Franchise operating rights | ||||
Impairment of franchise operating rights | $ 4.2 | |||
Dothan, AL | ||||
Franchise operating rights | ||||
Impairment of franchise operating rights | $ 5.5 |
Intangible Assets Subject to _3
Intangible Assets Subject to Amortization - Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets Subject to Amortization | |||
Balance at the beginning of the period | $ 3.6 | $ 5.5 | |
Acquisitions | 1.1 | 0.4 | |
Amortization | (1.8) | (2.3) | $ (2.6) |
Balance at the end of the period | 2.9 | 3.6 | 5.5 |
Customer relationships | |||
Intangible Assets Subject to Amortization | |||
Balance at the beginning of the period | 1.5 | 2.5 | |
Amortization | (1) | (1) | |
Balance at the end of the period | 0.5 | 1.5 | 2.5 |
Other | |||
Intangible Assets Subject to Amortization | |||
Balance at the beginning of the period | 2.1 | 3 | |
Acquisitions | 1.1 | 0.4 | |
Amortization | (0.8) | (1.3) | |
Balance at the end of the period | $ 2.4 | $ 2.1 | $ 3 |
Intangible Assets Subject to _4
Intangible Assets Subject to Amortization - Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets Subject to Amortization | |||
Amortization expense | $ 1.8 | $ 2.3 | $ 2.6 |
Amortization of the intangible assets | |||
2020 | 0.9 | ||
2021 | 0.4 | ||
2022 | 0.4 | ||
2023 | 0.3 | ||
2024 | 0.3 | ||
Thereafter | 0.6 | ||
Total | $ 2.9 | $ 3.6 | $ 5.5 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities and Other | ||
Programming costs | $ 33.4 | $ 35.4 |
Franchise and revenue sharing fees | 10.9 | 12 |
Payroll and employee benefits | 20.8 | 19.7 |
Property, income, sales and use taxes | 2.4 | 7.4 |
Utility pole rentals | 3.4 | 2.5 |
Interest rate swaps | 14.7 | 2.6 |
Other accrued liabilities | 10 | 13.6 |
Accrued liabilities and other | $ 95.6 | $ 93.2 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Leases - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 07, 2017 | May 31, 2017 |
Long-Term Debt and Capital Leases | ||||
Available borrowing capacity | $ 239,500 | |||
Long-term debt | 2,275,300 | $ 2,300,900 | ||
Finance lease liability | 23,100 | |||
Capital lease obligations | 5,100 | |||
Total long-term debt and finance lease obligations | 2,298,400 | 2,306,000 | ||
Debt issuance costs, net | (8,000) | (10,500) | ||
Sub-total | 2,290,400 | 2,295,500 | ||
Less current portion | (30,900) | (24,100) | ||
Long-term portion | $ 2,259,500 | 2,271,400 | ||
Term B Loans | ||||
Long-Term Debt and Capital Leases | ||||
Effective interest rate (as a percent) | 5.59% | |||
Long-term debt | $ 2,220,300 | 2,240,900 | $ 2,280 | |
Debt issuance costs, net | (6,000) | (7,700) | ||
Net discount | 8,400 | 10,600 | ||
Revolving Credit Facility | ||||
Long-Term Debt and Capital Leases | ||||
Available borrowing capacity | $ 239,500 | |||
Effective interest rate (as a percent) | 4.73% | |||
Long-term debt | $ 55,000 | 60,000 | ||
Debt issuance costs, net | (2,000) | $ (2,800) | ||
Sub-total | 55,000 | |||
Maximum borrowing capacity | 300,000 | $ 200,000 | ||
Outstanding letters of credit | $ 5,500 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Leases - Term B Loans and Revolving Credit Facility (Details) - USD ($) $ in Thousands | Jul. 17, 2017 | Jul. 07, 2017 | Mar. 20, 2017 | May 31, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Long-Term Debt and Capital Leases | |||||||
Long-term debt | $ 2,275,300 | $ 2,300,900 | |||||
Loss on early extinguishment of debt | $ 32,100 | ||||||
Term B Loans | |||||||
Long-Term Debt and Capital Leases | |||||||
Debt issued | $ 230,500 | ||||||
Long-term debt | 2,280 | 2,220,300 | 2,240,900 | ||||
Loss on early extinguishment of debt | $ 6,300 | ||||||
Term B Loans | Alternate base rate | |||||||
Long-Term Debt and Capital Leases | |||||||
Basis spread on variable rate (as a percent) | 2.25% | ||||||
Term B Loans | Adjusted LIBOR rate | |||||||
Long-Term Debt and Capital Leases | |||||||
Basis spread on variable rate (as a percent) | 3.25% | ||||||
Revolving Credit Facility | |||||||
Long-Term Debt and Capital Leases | |||||||
Long-term debt | 55,000 | $ 60,000 | |||||
Additional borrowing capacity | $ 100,000 | ||||||
Borrowings available | $ 200,000 | $ 300,000 | |||||
Borrowing capacity upon compliance with conditions | $ 300,000 | 300,000 | |||||
Loss on early extinguishment of debt | $ 1,000 | ||||||
Revolving Credit Facility | Alternate base rate | |||||||
Long-Term Debt and Capital Leases | |||||||
Basis spread on variable rate (as a percent) | 2.00% | 2.00% | |||||
Revolving Credit Facility | Adjusted LIBOR rate | |||||||
Long-Term Debt and Capital Leases | |||||||
Basis spread on variable rate (as a percent) | 3.00% | 3.00% | |||||
10.25 % Senior Notes | |||||||
Long-Term Debt and Capital Leases | |||||||
Loss on early extinguishment of debt | $ 19,800 | $ 5,000 | |||||
Interest rate (as a percent) | 10.25% | ||||||
Repayments of long-term debt | $ 729,900 | $ 95,100 |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Leases - Senior Notes (Details) - USD ($) $ in Millions | Jul. 17, 2017 | Mar. 20, 2017 | May 31, 2017 | Dec. 31, 2017 |
Long-Term Debt and Capital Leases | ||||
Loss on early extinguishment of debt | $ 32.1 | |||
10.25 % Senior Notes | ||||
Long-Term Debt and Capital Leases | ||||
Repayments of long-term debt | $ 729.9 | $ 95.1 | ||
Interest rate (as a percent) | 10.25% | |||
Accrued interest paid | 37.6 | $ 1.7 | ||
Payment of call premium | 4.9 | |||
Loss on early extinguishment of debt | 19.8 | $ 5 | ||
Prepayment fees | 18.7 | |||
Revolving Credit Facility | ||||
Long-Term Debt and Capital Leases | ||||
Loss on early extinguishment of debt | $ 1 | |||
Proceeds from credit facility used to pay senior note | $ 180 |
Long-Term Debt and Finance Le_6
Long-Term Debt and Finance Leases - Senior Subordinated Notes and Debt Extinguishment (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Long-Term Debt and Finance Leases | |
Loss on early extinguishment of debt | $ 32.1 |
Long-Term Debt and Finance Le_7
Long-Term Debt and Finance Lease Obligations - Amortization of Debt Issuance Costs and Debt Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortization of debt issue costs and accretion of debt discount | |||
Amortization of deferred issuance costs | $ 2.4 | $ 2.4 | $ 4 |
Accretion of debt premium | (1.1) | ||
Accretion of debt discount | 2.3 | 2.3 | $ 2.1 |
Maturities of long-term debt, excluding capital lease obligations | |||
2020 | 22.8 | ||
2021 | 22.8 | ||
2022 | 77.8 | ||
2023 | 2,151.9 | ||
Total | $ 2,275.3 | $ 2,300.9 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Summary (Details) - Interest rate swaps - Hedging $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)item | May 09, 2018USD ($) | |
Interest Rate Hedge | ||
Notional amount | $ 1,361.2 | |
Number of interest rate swaps | item | 2 | |
Term loan variable rate exposure (as a percent) | 60.00% | |
Fixed rate (as a percent) | 2.70% | |
Carrying amount | ||
Interest Rate Hedge | ||
Long-term debt | $ 2,283.7 | |
Reclassification of losses out of accumulated other comprehensive loss into earnings within next 12 months | $ 14.7 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Notional amounts, fair values and classification (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives | ||
Derivative current liabilities, fair value | $ 14.7 | $ 2.6 |
Interest rate swaps | Cash flow hedging | ||
Derivatives | ||
Notional amount | 1,337.2 | 1,350.9 |
Interest rate swaps | Cash flow hedging | Accrued Liabilities and Other | ||
Derivatives | ||
Derivative current liabilities, fair value | 14.7 | 2.6 |
Interest rate swaps | Cash flow hedging | Other non-current liabilities | ||
Derivatives | ||
Derivative noncurrent liabilities, fair value | $ 6.1 | $ 4 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Gains and losses on derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gains and losses on derivatives | |||||||||||
Loss before provision for income taxes | $ 37.9 | $ (152.4) | $ 27 | ||||||||
Income tax (expense) benefit | (1.5) | 65.1 | 158.3 | ||||||||
Net income (loss) | $ 6.9 | $ 11.4 | $ 9.7 | $ 8.4 | $ 17.1 | $ 31.4 | $ 25.4 | $ (161.2) | 36.4 | (87.3) | $ 185.3 |
Interest rate swaps | Hedging | Cash flow hedging | |||||||||||
Gains and losses on derivatives | |||||||||||
Losses on derivative | 6.2 | 4.8 | |||||||||
Accumulated Gain (Loss), Net, Cash Flow Hedge | Interest rate swaps | Hedging | Cash flow hedging | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Gains and losses on derivatives | |||||||||||
Loss before provision for income taxes | 13.8 | 6.5 | |||||||||
Income tax (expense) benefit | (4.8) | ||||||||||
Net income (loss) | $ 9 | $ 6.5 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Liabilities | ||
Transfer of assets from level 1 to level 2 | $ 0 | $ 0 |
Transfer of assets from level 2 to level 1 | 0 | 0 |
Transfer of liabilities from level 1 to level 2 | 0 | 0 |
Transfer of liabilities from level 2 to level 1 | 0 | 0 |
Transfer of assets into level 3 | 0 | 0 |
Transfer of assets out of level 3 | 0 | 0 |
Transfer of liabilities into level 3 | 0 | 0 |
Transfer of liabilities out of level 3 | 0 | 0 |
Significant other observable inputs (Level 2) | Recurring | ||
Financial Liabilities | ||
Derivative instrument | 20.8 | 6.6 |
Long-term debt | $ 2,220.3 | $ 2,093.9 |
Equity - IPO (Details)
Equity - IPO (Details) $ / shares in Units, $ in Millions | May 25, 2017USD ($)$ / sharesshares |
Initial Public Offering | |
Conversion ratio of stock-split | 66,498.762 |
IPO | |
Initial Public Offering | |
Shares issued | shares | 20,970,589 |
Share price (in dollars per share) | $ / shares | $ 17 |
Gross proceeds | $ 356.5 |
Issuance costs | 22.5 |
Proceeds from issuance of common stock, net of issuance costs | $ 334 |
Equity - Common Stock Repurchas
Equity - Common Stock Repurchase Plan (Details) $ in Millions | Aug. 08, 2018shares | Mar. 26, 2018shares | May 25, 2017 | Dec. 31, 2019shares | Dec. 31, 2018shares | Dec. 31, 2017shares | May 10, 2018USD ($) | Dec. 14, 2017USD ($) |
Common Stock | ||||||||
Share buybacks | 7,098,637 | 461,173 | ||||||
Income tax withholding | 186,786 | 332,503 | ||||||
Number of shares repurchased (in shares) | 2,500,000 | 5,100,000 | 186,786 | 7,431,140 | 461,173 | |||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 66,498.762 | |||||||
Maximum | ||||||||
Common Stock | ||||||||
Common stock repurchase authorized amount | $ | $ 25 | $ 50 |
Stock-Based Compensation - 2017
Stock-Based Compensation - 2017 Plan and Activity (Details) | Dec. 31, 2017shares |
2017 Plan | |
Stock Based Compensation | |
Number of authorized shares | 12,074,128 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Grants (Details) - Restricted stock awards - shares | Dec. 14, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Stock Based Compensation | |||||
Granted (in shares) | 2,075,455 | 2,116,546 | |||
Vested (in shares) | 825,764 | 1,242,930 | |||
2017 Plan | CEO | |||||
Stock Based Compensation | |||||
Granted (in shares) | 171,233 | ||||
Vesting period | 4 years | ||||
2017 Plan, Long-term incentive compensation | Management | |||||
Stock Based Compensation | |||||
Granted (in shares) | 450,356 | ||||
Annual vesting percentage | 33.00% | ||||
2017 Plan, Equity compensation plan | Management | |||||
Stock Based Compensation | |||||
Granted (in shares) | 866,708 | ||||
Vesting (as a percent) | 100.00% | ||||
2017 Plan, Equity compensation plan | Management | Minimum | |||||
Stock Based Compensation | |||||
Shares granted based on achievement of the 2017 MBP (as percent) | 100.00% | ||||
2017 Plan, Equity compensation plan | Management | Maximum | |||||
Stock Based Compensation | |||||
Shares granted based on achievement of the 2017 MBP (as percent) | 150.00% | ||||
2017 Plan, Equity compensation plan | Board of Directors | |||||
Stock Based Compensation | |||||
Granted (in shares) | 54,361 | ||||
Vesting (as a percent) | 100.00% | ||||
2017 Plan, Replacement awards | Management | |||||
Stock Based Compensation | |||||
Granted (in shares) | 394,052 | ||||
Annual vesting percentage | 33.00% | ||||
2017 Plan, Replacement awards | Employees | |||||
Stock Based Compensation | |||||
Granted (in shares) | 78,050 | ||||
Annual vesting percentage | 33.00% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted stock awards - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Awards | ||
Outstanding, beginning of period (in shares) | 2,356,418 | 1,914,570 |
Granted (in shares) | 2,075,455 | 2,116,546 |
Vested (in shares) | (825,764) | (1,242,930) |
Forfeited (in shares) | (465,941) | (431,768) |
Outstanding, end of period (in shares) | 3,140,168 | 2,356,418 |
Average grant date fair value | ||
Outstanding, beginning of period (in dollars per share) | $ 9.23 | $ 16.82 |
Granted (in dollars per share) | 8.41 | 7.78 |
Vested ( in dollars per share ) | 9.84 | 17.08 |
Forfeited ( in dollars per share ) | 9.01 | 13.19 |
Outstanding, end of period (in dollars per share) | $ 8.56 | $ 9.23 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-Based Compensation | |||
Total non-recognized non-cash compensation expense | $ 20.3 | ||
Weighted-average period | 2 years 8 months 12 days | ||
Selling, general and administrative expense and operating expenses (excluding depreciation and amortization) | |||
Stock-Based Compensation | |||
Non-cash compensation expense | $ 10.1 | $ 13 | $ 13.4 |
Stock-based Compensation - 2016
Stock-based Compensation - 2016 Profit Interest Plan and 2016 Grants (Details) - shares | Jul. 18, 2016 | Feb. 03, 2016 |
2016 Profit Interest Plan | Former Parent | Management Incentive Units | ||
2016 Profit Interest Plan | ||
Number of authorized shares | 295,667 | |
Authorized management incentive units that could be awarded (as a percent) | 8.00% | |
2016 Director Plan | Non-voting Bonus Units | ||
2016 Profit Interest Plan | ||
Aggregate value of 2016 Profit Interest Plan reserved for 2016 Director Plan (as a percent) | 10.00% | |
Annual vesting percentage | 25.00% | |
Vesting period | 4 years |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of activity (Details) - Class D | 12 Months Ended |
Dec. 31, 2017shares | |
Summary of the activity in the units | |
Balances at beginning of the year (in units) | 201,696 |
Vested converted to D units (in units) | (48,939) |
Cancelled unvested (in units) | (152,757) |
Income Taxes - Income tax (expe
Income Taxes - Income tax (expense) benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax (expense) benefit | |||
Federal | $ 8.8 | $ (5.7) | |
State | $ 2.8 | (1) | (11.9) |
Total Current | 2.8 | 7.8 | (17.6) |
Deferred tax (expense) benefit | |||
Federal | (8.1) | 44.8 | 179.6 |
State | 3.8 | 12.5 | (3.7) |
Total Deferred | (4.3) | 57.3 | 175.9 |
Income tax (expense) benefit, net | $ (1.5) | $ 65.1 | $ 158.3 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | |||
Income tax (expense) benefit, net | $ (1.5) | $ 65.1 | $ 158.3 |
Reconciliation of the income tax provision computed at statutory tax rates to the income tax provision | |||
Statutory federal income taxes | (8) | 32 | (9.5) |
State income taxes | (2.1) | 11.9 | (1.6) |
Uncertain tax positions | 3.7 | (0.1) | (3.2) |
Tax status change & other true-ups | 0.9 | 1.3 | 4 |
Other true-ups | 0.8 | 1 | 1.2 |
Equity compensation | (0.3) | (1.9) | |
Other permanent differences | (0.4) | (0.3) | (0.5) |
Goodwill impairment | (11.2) | (35.1) | |
Corporate Tax Reform | 103.4 | ||
Change in valuation allowance | $ 3.9 | $ 32.4 | $ 99.6 |
Effective tax rate (as a percent) | 21.00% | 21.00% | 35.00% |
Temporary bonus depreciation rate (as a percent) | 100.00% | ||
Additional valuation allowance from re-measurement | $ 22.1 | ||
Deferred tax expense (benefit) | $ 125.5 |
Income Taxes - Deferred tax lia
Income Taxes - Deferred tax liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current deferred income tax (assets) liabilities: | ||
Allowances and other reserves | $ (6.8) | $ (7.1) |
Net operating loss carryforwards | (203.7) | (172.8) |
Depreciation and amortization | 183.9 | 140.5 |
Franchise operating rights | 202 | 204.7 |
Interest hedging | (4.8) | |
Debt issuance costs | 2.5 | 3.2 |
State income tax | (0.9) | (1.9) |
Other | (6.4) | (4.1) |
Valuation allowance | 26.7 | 30.4 |
Total net deferred tax liabilities | $ 192.5 | $ 192.9 |
Income Taxes - Valuation allowa
Income Taxes - Valuation allowance (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes | ||
Valuation allowance | $ 26.7 | $ 30.4 |
Income Taxes - NOLs (Details)
Income Taxes - NOLs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Taxes | |
Net operating losses subject to Section 382 and other restrictions | $ 652.6 |
Federal | |
Income Taxes | |
Net operating loss carryforwards | 850 |
Net operating loss carryforward, Indefinite lived | 197.4 |
Net operating loss carryforward subject to expiration | 652.6 |
State | |
Income Taxes | |
Net operating loss carryforwards | 931 |
Net operating loss carryforward, Indefinite lived | 158.4 |
Net operating loss carryforward subject to expiration | 772.6 |
Net operating loss carryforward subject to utilization limitations due to ownership change | $ 646 |
Income Taxes - Uncertain tax po
Income Taxes - Uncertain tax positions (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)Y | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Income Taxes | |||
Unrecognized tax benefits at the beginning of year | $ 28 | $ 30.9 | $ 31.5 |
Gross increases - tax positions in prior period | 3.8 | ||
Gross decreases - tax positions in prior period | (12.8) | (2.9) | (2.6) |
Gross increases - tax positions in current period | 14.2 | ||
Settlements | (3.8) | (1.2) | |
Gross change related to Tax Reform | (14.8) | ||
Unrecognized tax benefits at the end of year | 11.4 | 28 | 30.9 |
Accrued gross interest and penalties | 1 | $ 1.9 | $ 1.4 |
Unrecognized tax benefits reasonably possible adjustment in the next twelve months | $ 0 | ||
Number of tax years open for examination | Y | 0 |
Earnings (Loss) per Common Sh_3
Earnings (Loss) per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings (Loss) per Common Share | |||||||||||
Net income (loss) | $ 6.9 | $ 11.4 | $ 9.7 | $ 8.4 | $ 17.1 | $ 31.4 | $ 25.4 | $ (161.2) | $ 36.4 | $ (87.3) | $ 185.3 |
Basic weighted-average shares | 80,713,926 | 81,808,425 | 78,778,640 | ||||||||
Effect of dilutive securities: | |||||||||||
Restricted stock awards | 475,236 | 137,306 | |||||||||
Diluted weighted-average shares | 81,189,162 | 81,808,425 | 78,915,946 | ||||||||
Basic net income (loss) per share (in dollars per share) | $ 0.08 | $ 0.14 | $ 0.12 | $ 0.10 | $ 0.21 | $ 0.39 | $ 0.31 | $ (1.91) | $ 0.45 | $ (1.07) | $ 2.35 |
Diluted net income (loss) per share (in dollars per share) | $ 0.08 | $ 0.14 | $ 0.12 | $ 0.10 | $ 0.21 | $ 0.38 | $ 0.31 | $ (1.91) | $ 0.45 | $ (1.07) | $ 2.35 |
Employee Benefits - 401(k) (Det
Employee Benefits - 401(k) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
401(k) Savings Plan | |||
Annual vesting percentage of Company matching contribution | 25.00% | ||
Vesting period | 4 years | ||
Expense related to the matching contributions to the 401(k) plan | $ 3.9 | $ 0.9 | $ 0.8 |
First 3% of employee contributions | |||
401(k) Savings Plan | |||
Employer contribution subject to first 4% of the participant's compensation (as a percent) | 100.00% | ||
First 3% of employee contributions | Maximum | |||
401(k) Savings Plan | |||
Participant's compensation for 25% contribution (as a percent) | 3.00% | ||
Next 2% of employee contributions | |||
401(k) Savings Plan | |||
Employer contribution subject to first 4% of the participant's compensation (as a percent) | 50.00% | ||
Next 2% of employee contributions | Minimum | |||
401(k) Savings Plan | |||
Participant's compensation for 25% contribution (as a percent) | 3.00% | ||
Next 2% of employee contributions | Maximum | |||
401(k) Savings Plan | |||
Participant's compensation for 25% contribution (as a percent) | 4.00% |
Employee Benefits - Deferred Co
Employee Benefits - Deferred Compensation Plan (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets and liabilities of the plan included in the Consolidated Balance Sheets | ||
Prepaid expenses and other (current assets) | $ 1.7 | $ 1.5 |
Accrued liabilities and other (current liabilities) | $ 1.7 | $ 1.5 |
Commitments and Contingencies -
Commitments and Contingencies - PP&E Capital Leases and Rental Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases | |||
Rent expense for pole rental | $ 9.1 | $ 8.5 | $ 7.3 |
Franchise fees and other franchise related costs | $ 22.8 | $ 24.3 | $ 24.8 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | 17 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 24, 2017 | Dec. 18, 2015 | |
Related Party Transactions | |||||
Contribution from parent | $ 20.3 | ||||
Repurchase of management units | 8.8 | ||||
Income tax (expense) benefit | $ 1.5 | $ (65.1) | (158.3) | ||
Avista and Crestview, majority unit holders of the Parent of the reporting unit | |||||
Related Party Transactions | |||||
Quarterly management fees base rate | $ 0.4 | ||||
Percentage of management fees | 50.00% | ||||
Payment of management fees | $ 0 | $ 0 | 1 | ||
Former Parent of the reporting entity | Purchase of units from former employees | |||||
Related Party Transactions | |||||
Repurchase of management units | $ 8.8 | ||||
Former Parent of the reporting entity | Purchase of units from former employees | Class A | |||||
Related Party Transactions | |||||
Repurchase of old management units (in units) | 415,494 | ||||
Former Parent of the reporting entity | Purchase of units from former employees | Class B units | |||||
Related Party Transactions | |||||
Repurchase of old management units (in units) | 243,270 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected quarterly financial information | |||||||||||
Revenues | $ 283.5 | $ 285.4 | $ 289.7 | $ 287.2 | $ 285.4 | $ 291.6 | $ 291.3 | $ 285.5 | $ 1,145.8 | $ 1,153.8 | $ 1,188.1 |
Income (loss) from operations | 36.5 | 46.7 | 47 | 46.2 | 48.1 | 57.1 | 47.9 | (174.7) | 176.4 | (21.6) | 170.7 |
Net income (loss) | $ 6.9 | $ 11.4 | $ 9.7 | $ 8.4 | $ 17.1 | $ 31.4 | $ 25.4 | $ (161.2) | $ 36.4 | $ (87.3) | $ 185.3 |
Basic net income (loss) per share (in dollars per share) | $ 0.08 | $ 0.14 | $ 0.12 | $ 0.10 | $ 0.21 | $ 0.39 | $ 0.31 | $ (1.91) | $ 0.45 | $ (1.07) | $ 2.35 |
Diluted net income (loss) per share (in dollars per share) | $ 0.08 | $ 0.14 | $ 0.12 | $ 0.10 | $ 0.21 | $ 0.38 | $ 0.31 | $ (1.91) | $ 0.45 | $ (1.07) | $ 2.35 |
Impairment | $ 9.7 | $ 216.3 | $ 9.7 | $ 216.3 | $ 147.4 | ||||||
Amount of out-of-quarter decrease in regulatory revenue due to change in contract terms | 1.5 | ||||||||||
Increase in depreciation expense related to assets placed in service | $ 3.4 | ||||||||||
Errors in accounting for deferred income taxes | Adjustment | |||||||||||
Selected quarterly financial information | |||||||||||
Net income (loss) | $ 0.2 | $ 0.3 | $ 0.2 | $ 0.8 | $ 0.9 | $ 0.8 | $ 0.8 | $ 3.3 | $ 1.1 | ||
Basic and diluted net income (loss) per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Revision of Prior Period Fina_3
Revision of Prior Period Financial Statements (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liabilities and stockholders' deficit | |||||||||||||||
Deferred income taxes, net | $ 192.5 | $ 192.9 | |||||||||||||
Total liabilities | 2,717.5 | 2,701.4 | |||||||||||||
Accumulated deficit | $ (474.4) | $ (510.8) | $ (510.8) | $ (432.6) | $ (510.8) | $ (432.6) | $ (432.6) | (474.4) | (510.8) | $ (432.6) | $ (617.9) | ||||
Total stockholders' deficit | (245.9) | (281.8) | (136.6) | (676) | |||||||||||
Total liabilities and stockholders' deficit | 2,471.6 | 2,419.6 | |||||||||||||
Revised Consolidated Statements of Operations | |||||||||||||||
Income tax benefit | (1.5) | 65.1 | 158.3 | ||||||||||||
Net income (loss) | $ 6.9 | $ 11.4 | $ 9.7 | $ 8.4 | $ 17.1 | $ 31.4 | $ 25.4 | $ (161.2) | $ 36.4 | $ (87.3) | $ 185.3 | ||||
Basic net income (loss) per share (in dollars per share) | $ 0.08 | $ 0.14 | $ 0.12 | $ 0.10 | $ 0.21 | $ 0.39 | $ 0.31 | $ (1.91) | $ 0.45 | $ (1.07) | $ 2.35 | ||||
Diluted net income (loss) per share (in dollars per share) | $ 0.08 | $ 0.14 | $ 0.12 | $ 0.10 | $ 0.21 | $ 0.38 | $ 0.31 | $ (1.91) | $ 0.45 | $ (1.07) | $ 2.35 | ||||
Revised Consolidated Statements of Comprehensive Income (Loss) | |||||||||||||||
Net Income (Loss) Attributable to Parent | $ 6.9 | $ 11.4 | $ 9.7 | $ 8.4 | $ 17.1 | $ 31.4 | $ 25.4 | $ (161.2) | $ 36.4 | $ (87.3) | $ 185.3 | ||||
Comprehensive income (loss) | 27.4 | (93.8) | 185.3 | ||||||||||||
Revised Statement of Stockholders' Deficit | |||||||||||||||
Accumulated deficit, Balance at beginning of year | (510.8) | (432.6) | (510.8) | (432.6) | (617.9) | ||||||||||
Net income (loss) | 6.9 | 11.4 | 9.7 | 8.4 | 17.1 | 31.4 | 25.4 | (161.2) | 36.4 | (87.3) | 185.3 | ||||
Accumulated deficit, Balance at end of year | $ (474.4) | (510.8) | (474.4) | (510.8) | (432.6) | ||||||||||
Total stockholders' deficit | $ (245.9) | (281.8) | (136.6) | (676) | |||||||||||
Revised Statement of Cash Flows | |||||||||||||||
Net income (loss) | 36.4 | (87.3) | 185.3 | ||||||||||||
Deferred income taxes | 4.3 | (57.3) | (175.9) | ||||||||||||
Errors in accounting for deferred income taxes | As Reported | |||||||||||||||
Liabilities and stockholders' deficit | |||||||||||||||
Deferred income taxes, net | 201.4 | ||||||||||||||
Total liabilities | 2,709.9 | ||||||||||||||
Accumulated deficit | (519.3) | (519.3) | (437.8) | (519.3) | (437.8) | (437.8) | (519.3) | (437.8) | (622) | ||||||
Total stockholders' deficit | (290.3) | (141.8) | (680.1) | ||||||||||||
Total liabilities and stockholders' deficit | 2,419.6 | ||||||||||||||
Revised Consolidated Statements of Operations | |||||||||||||||
Income tax benefit | 61.8 | 157.2 | |||||||||||||
Net income (loss) | $ (90.6) | $ 184.2 | |||||||||||||
Basic net income (loss) per share (in dollars per share) | $ (1.11) | $ 2.34 | |||||||||||||
Diluted net income (loss) per share (in dollars per share) | $ (1.11) | $ 2.34 | |||||||||||||
Revised Consolidated Statements of Comprehensive Income (Loss) | |||||||||||||||
Net Income (Loss) Attributable to Parent | $ (90.6) | $ 184.2 | |||||||||||||
Comprehensive income (loss) | (97.1) | 184.2 | |||||||||||||
Revised Statement of Stockholders' Deficit | |||||||||||||||
Accumulated deficit, Balance at beginning of year | (519.3) | (437.8) | (519.3) | (437.8) | (622) | ||||||||||
Net income (loss) | (90.6) | 184.2 | |||||||||||||
Accumulated deficit, Balance at end of year | (519.3) | (519.3) | (437.8) | ||||||||||||
Total stockholders' deficit | (290.3) | (141.8) | (680.1) | ||||||||||||
Revised Statement of Cash Flows | |||||||||||||||
Net income (loss) | (90.6) | 184.2 | |||||||||||||
Deferred income taxes | (54) | (174.8) | |||||||||||||
Errors in accounting for deferred income taxes | Adjustment | |||||||||||||||
Liabilities and stockholders' deficit | |||||||||||||||
Deferred income taxes, net | (8.5) | ||||||||||||||
Total liabilities | (8.5) | ||||||||||||||
Accumulated deficit | 8.5 | 8.5 | 5.2 | 8.5 | 5.2 | 5.2 | 8.5 | 5.2 | 4.1 | ||||||
Total stockholders' deficit | 8.5 | 5.2 | 4.1 | ||||||||||||
Revised Consolidated Statements of Operations | |||||||||||||||
Income tax benefit | 3.3 | 1.1 | |||||||||||||
Net income (loss) | 0.2 | 0.3 | 0.2 | 0.8 | 0.9 | 0.8 | 0.8 | 3.3 | 1.1 | ||||||
Revised Consolidated Statements of Comprehensive Income (Loss) | |||||||||||||||
Net Income (Loss) Attributable to Parent | 0.2 | 0.3 | 0.2 | 0.8 | 0.9 | 0.8 | 0.8 | 3.3 | 1.1 | ||||||
Comprehensive income (loss) | 3.3 | 1.1 | |||||||||||||
Revised Statement of Stockholders' Deficit | |||||||||||||||
Accumulated deficit, Balance at beginning of year | 8.5 | 5.2 | $ 8.5 | 5.2 | 4.1 | ||||||||||
Net income (loss) | $ 0.2 | $ 0.3 | $ 0.2 | 0.8 | $ 0.9 | $ 0.8 | $ 0.8 | 3.3 | 1.1 | ||||||
Accumulated deficit, Balance at end of year | $ 8.5 | 8.5 | 5.2 | ||||||||||||
Total stockholders' deficit | $ 8.5 | $ 5.2 | $ 4.1 | ||||||||||||
Revised Statement of Cash Flows | |||||||||||||||
Net income (loss) | 3.3 | 1.1 | |||||||||||||
Deferred income taxes | $ (3.3) | $ (1.1) |