Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
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 | Suite 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 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | WOW | ||
Security Exchange Name | NYSE | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 409.1 | ||
Entity Common Stock, Shares Outstanding | 83,631,418 | ||
Auditor Name | BDO USA, P.C. | ||
Auditor Location | Atlanta, Georgia | ||
Auditor Firm ID | 243 | ||
Entity Central Index Key | 0001701051 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets | |||
Cash and cash equivalents | $ 23.4 | $ 31 | |
Accounts receivable-trade, net of allowance for doubtful accounts of $6.7 and $4.3, respectively | 38.8 | 39.9 | |
Accounts receivable-other, net | 9.5 | 12.2 | |
Prepaid expenses and other | 38.5 | 37.8 | |
Total current assets | 110.2 | 120.9 | |
Right-of-use lease assets-operating | 20.1 | 15 | |
Property, plant and equipment, net | 830.4 | 725.8 | |
Franchise operating rights | 278.3 | 585.1 | |
Goodwill | 225.1 | 225.1 | |
Intangible assets subject to amortization, net | 1 | 1.3 | |
Other non-current assets | 49.6 | 44.2 | |
Total assets | 1,514.7 | 1,717.4 | |
Current liabilities | |||
Accounts payable-trade | 59.5 | 46.1 | |
Accrued interest | 1.6 | 0.1 | |
Current portion of long-term lease liability-operating | 4.3 | 4.9 | |
Accrued liabilities and other | 60 | 68.7 | |
Current portion of long-term debt and finance lease obligations | 18.8 | 17.7 | |
Current portion of unearned service revenue | 25.4 | 27.2 | |
Total current liabilities | 169.6 | 164.7 | |
Long-term debt and finance lease obligations, net of debt issuance costs -less current portion | 915.7 | 725 | |
Long-term lease liability-operating | 18 | 11.6 | |
Deferred income taxes, net | 125.7 | 225.3 | |
Other non-current liabilities | 27.5 | 15.7 | |
Total liabilities | 1,256.5 | 1,142.3 | |
Commitments and contingencies (Note 17) | |||
Stockholders' equity: | |||
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; 98,594,629 and 96,830,312 issued as of December 31, 2023 and December 31, 2022, respectively; 83,557,786 and 86,417,733 outstanding as of December 31, 2023 and December 31, 2022, respectively | 1 | 1 | |
Additional paid-in capital | 391.8 | 374.7 | |
Retained earnings | 20.3 | 308 | |
Treasury stock at cost, 15,036,843 and 10,412,579 shares as of December 31, 2023 and December 31, 2022, respectively | (154.9) | (108.6) | |
Total stockholders' equity | [1] | 258.2 | 575.1 |
Total liabilities and stockholders' equity | $ 1,514.7 | $ 1,717.4 | |
[1] Included in outstanding shares as of December 31, 2023, 2022 and 2021 are 2,451,026 , 3,223,995 and 4,325,124 , respectively, of non-vested shares of restricted stock awards granted to employees and directors. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable-trade, allowance for doubtful accounts | $ 6.7 | $ 4.3 |
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) | 98,594,629 | 96,830,312 |
Common stock, shares outstanding ( in shares) | 83,557,786 | 86,417,733 |
Common shares held in treasury, (in shares) | 15,036,843 | 10,412,579 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Revenue | $ 686.7 | $ 704.9 | $ 725.7 |
Costs and expenses: | |||
Operating (excluding depreciation and amortization) | 301 | 327 | 376.4 |
Selling, general and administrative | 200.4 | 165.4 | 175.2 |
Depreciation and amortization | 193.5 | 178.2 | 169.3 |
Impairment losses on intangibles | 306.8 | 35 | |
Total costs and expenses | 1,001.7 | 705.6 | 720.9 |
(Loss) income from operations | (315) | (0.7) | 4.8 |
Other income (expense): | |||
Interest expense | (71.1) | (38.7) | (93.5) |
Loss on early extinguishment of debt | (3.2) | ||
Other income, net | 2.3 | 16.6 | 9.5 |
Loss before provision for income tax | (383.8) | (22.8) | (82.4) |
Income tax benefit | 96.1 | 20.3 | 13.8 |
Loss from continuing operations | (287.7) | (2.5) | (68.6) |
Discontinued Operations (Note 18) | |||
Income from discontinued operations, net of tax | 839.1 | ||
Net (loss) income | $ (287.7) | $ (2.5) | $ 770.5 |
Basic and diluted (loss) earnings per common share - continuing operations | |||
Basic (in dollars per share) | $ (3.53) | $ (0.03) | $ (0.83) |
Diluted (in dollars per share) | (3.53) | (0.03) | (0.83) |
Basic and diluted earnings per common share - discontinued operations | |||
Basic (in dollars per share) | 10.14 | ||
Diluted (in dollars per share) | 10.14 | ||
Basic and diluted (loss) earnings per common share | |||
Basic (in dollars per share) | (3.53) | (0.03) | 9.31 |
Diluted (in dollars per share) | $ (3.53) | $ (0.03) | $ 9.31 |
Weighted-average common shares outstanding | |||
Basic (in shares) | 81,595,766 | 83,930,984 | 82,720,934 |
Diluted (in shares) | 81,595,766 | 83,930,984 | 82,720,934 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||
Net (loss) income | $ (287.7) | $ (2.5) | $ 770.5 |
Unrealized gain on derivative instrument, net of tax | 6.5 | ||
Comprehensive (loss) income | $ (287.7) | $ (2.5) | $ 777 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Common Stock | Treasury Stock at Cost | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total | ||
Balances at beginning of period at Dec. 31, 2020 | $ 1 | $ (80.7) | $ 333.8 | $ (6.5) | $ (460) | $ (212.4) | ||
Balances at beginning of period (in shares) at Dec. 31, 2020 | 86,847,797 | |||||||
Increase (Decrease) in Stockholders' Deficit | ||||||||
Changes in accumulated other comprehensive gain (loss) | $ 6.5 | 6.5 | ||||||
Stock-based compensation | 14.7 | 14.7 | ||||||
Issuance of restricted stock, net (in shares) | 1,038,749 | |||||||
Purchase of shares | (8.5) | $ (8.5) | ||||||
Purchase of shares (in shares) | (494,458) | 494,458 | ||||||
Net Income (Loss) | 770.5 | $ 770.5 | ||||||
Balances at end of period at Dec. 31, 2021 | [1] | $ 1 | (89.2) | 348.5 | 310.5 | 570.8 | ||
Balances at end of period (in shares) at Dec. 31, 2021 | [1] | 87,392,088 | ||||||
Increase (Decrease) in Stockholders' Deficit | ||||||||
Stock-based compensation | 26.2 | 26.2 | ||||||
Issuance of restricted stock, net (in shares) | 604,402 | |||||||
Purchase of shares | (19.4) | $ (19.4) | ||||||
Purchase of shares (in shares) | (1,578,757) | 1,578,757 | ||||||
Net Income (Loss) | (2.5) | $ (2.5) | ||||||
Balances at end of period at Dec. 31, 2022 | [1] | $ 1 | (108.6) | 374.7 | 308 | $ 575.1 | ||
Balances at end of period (in shares) at Dec. 31, 2022 | 86,417,733 | [1] | 86,417,733 | |||||
Increase (Decrease) in Stockholders' Deficit | ||||||||
Stock-based compensation | 17.1 | $ 17.1 | ||||||
Issuance of restricted stock, net (in shares) | 1,764,317 | |||||||
Purchase of shares | (46.3) | $ (46.3) | ||||||
Purchase of shares (in shares) | (4,624,264) | 4,624,264 | ||||||
Net Income (Loss) | (287.7) | $ (287.7) | ||||||
Balances at end of period at Dec. 31, 2023 | [1] | $ 1 | $ (154.9) | $ 391.8 | $ 20.3 | $ 258.2 | ||
Balances at end of period (in shares) at Dec. 31, 2023 | 83,557,786 | [1] | 83,557,786 | |||||
[1] Included in outstanding shares as of December 31, 2023, 2022 and 2021 are 2,451,026 , 3,223,995 and 4,325,124 , respectively, of non-vested shares of restricted stock awards granted to employees and directors. |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - Restricted stock awards - shares | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Number of shares granted to employees and directors | 2,451,026 | 3,223,995 | 4,325,124 |
Common Stock | |||
Number of shares granted to employees and directors | 2,451,026 | 3,223,995 | 4,325,124 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (287.7) | $ (2.5) | $ 770.5 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 193.1 | 179.3 | 210.3 |
Deferred income taxes | (99.6) | (32.2) | 54.9 |
Provision for doubtful accounts | 12.7 | 6 | 11.2 |
Loss (gain) on sale of assets, net | 0.3 | (1,001.3) | |
Loss (gain) on sale of operating assets, net | 0.4 | (1.1) | (0.5) |
Amortization of debt issuance costs and discount | 1.7 | 1.7 | 4.7 |
Loss on debt extinguishment | 3.2 | ||
Impairment losses on intangibles | 306.8 | 35 | 0 |
Non-cash compensation | 16.8 | 25.8 | 15.3 |
Other non-cash items | (0.2) | (0.1) | (0.2) |
Changes in operating assets and liabilities: | |||
Receivables and other operating assets | (15) | (14.3) | (27.9) |
Payables and accruals | 5.8 | (163.8) | 133.8 |
Net cash provided by operating activities | 135.1 | 33.8 | 174 |
Cash flows from investing activities: | |||
Capital expenditures | (268.9) | (167.2) | (207.7) |
Proceeds from sale of markets, net | 1,765.7 | ||
Other investing activities | 0.1 | 1.4 | 1.3 |
Net cash (used in) provided by investing activities | (268.8) | (165.8) | 1,559.3 |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt, net | 202 | 9 | 762.1 |
Payments on long-term debt and finance lease obligations | (29.6) | (19.8) | (2,303.5) |
Payments of debt issuance costs | (2.6) | ||
Purchase of shares | (46.3) | (19.4) | (8.5) |
Net cash provided by (used in) financing activities | 126.1 | (30.2) | (1,552.5) |
Increase (decrease) in cash and cash equivalents | (7.6) | (162.2) | 180.8 |
Cash and cash equivalents, beginning of period | 31 | 193.2 | 12.4 |
Cash and cash equivalents, end of period | 23.4 | 31 | 193.2 |
Supplemental disclosures of cash flow information: | |||
Cash paid during the periods for interest | 67.5 | 37.8 | 93.1 |
Cash paid during the periods for income taxes | 10.9 | 147.5 | 97.1 |
Cash received during the periods for refunds of income taxes | 5 | 1.7 | |
Non-cash financing activities: | |||
Other financing arrangements | 1.5 | ||
Capital expenditures within accounts payable and accruals | $ 42.6 | $ 32 | $ 27.4 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Basis of Presentation | |
Organization and Basis of Presentation | WideOpenWest, Inc. and Subsidiaries 1. Organization and Basis of Presentation Organization WideOpenWest, Inc. (“WOW” or the “Company”) is one of the nation’s leading broadband providers offering an expansive portfolio of advanced services, including high-speed data ("HSD"), cable television ("Video"), and digital telephony ("Telephony") services to residential and business customers. The Company serves customers in 16 markets in the United States which consist of Detroit and Lansing, Michigan; Augusta, Columbus, Newnan and West Point, Georgia; Charleston and Greenville, South Carolina; Dothan, Auburn, Huntsville and Montgomery, Alabama; Knoxville, Tennessee; and Panama City, Pinellas County, and Seminole County, Florida. Basis of Presentation 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 “SEC”). 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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. 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 the aging of the individual receivables, historical trends and current and anticipated future economic conditions. The Company’s 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 100 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. See Note 3 – Revenue from Contracts with Customers for a discussion of changes in the allowance for doubtful accounts for the periods presented. Prepaid Expenses and Other Prepaid expenses and other primarily consists of short-term deferred contract costs, short-term deferred promotional costs, and prepaid software and insurance costs. Prepayments are recognized as operating expenses or selling, general, and administrative expense over the life of the underlying agreements. 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: Estimated Useful Asset Category Lives (Years) Office and technical equipment 3 - 10 Computer equipment and software 3 Customer premise equipment 5 Vehicles 5 Telephony infrastructure 5 - 7 Headend equipment 7 Distribution facilities 10 Building and leasehold improvements 5 - 20 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 Company’s franchise operating rights were acquired through business combinations. The Company does not amortize franchise operating rights as it has been 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 was determined to be 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 6 – Franchise Operating Rights & Goodwill for discussion of impairment charges recognized for the periods presented. 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 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 determined it had one reporting unit as part of its annual goodwill analysis on October 1. See Note 6 – Franchise Operating Rights & Goodwill for a discussion of impairment charges recognized for the periods presented. Other Noncurrent Assets Other noncurrent assets are comprised primarily of long-term deferred contract costs and long-term deferred promotional costs. These amounts are recognized as operating expenses, selling, general, and administrative expense or deduction to revenue 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 debt’s variable rate of interest and the Company’s own credit risk and risk of nonperformance. 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. 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. The amortization of debt issuance costs is included in interest expense on the accompanying consolidated statements of operations. 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 Company’s 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 Company’s 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 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. The Company’s trade receivables are subject to credit risk, as customer deposits are generally not required. The Company’s 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 customer’s service. Costs and Expenses The Company’s expenses consist of operating, selling, general and administrative expenses, depreciation and amortization expense and interest expense. Business interruption insurance proceeds are recorded to operating expense in the statements of operations. Programming Costs 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. 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, 2023, 2022 and 2021 was $36.6 million, $36.5 million and $39.5 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. 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 Company’s 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 Company’s 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 10 – Derivative Instruments and Hedging Activities for a discussion of hedging activities for the periods presented. Stock-based Compensation The Company’s stock-based compensation consists of liability and equity based restricted stock awards with service, performance and market conditions. Restricted stock awards are measured at the grant date fair value and amortized to stock compensation expense over the requisite service period. The fair value of restricted stock awards with market conditions are measured utilizing Monte Carlo simulations. Awards with performance or market conditions will vest based on the Company’s achievement level relative to specific requirements. For all restricted stock awards, the Company accounts for forfeitures as they occur. Refer to Note 13 – Stock-Based Compensation for a discussion of the Company’s stock-based compensation for the periods presented. Segments The Company’s chief operating decision maker (“CODM”) regularly reviews the Company’s results to assess the Company’s performance and allocates resources at a consolidated level. Although the consolidated results include the Company’s 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 Company’s 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 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280), Improvement to Reportable Segment Disclosures. ASU 2023-07 will require public business entities (“PBEs”) to disclose, on an annual and interim basis, significant segment expenses provided to the chief operating decision maker (“CODM”) including a profit and loss; an amount for other segment items by reportable segment, including a description of composition; annual disclosures about a reportable segment’s profit or loss; if a CODM uses more than one measure of a segment’s profit or loss the PBE may report one or more of those additional measures; and requires that a PBE disclose the title and position of the CODM. The updated disclosure requirements are to be adopted for annual periods beginning after December 15, 2023. The Company does not anticipate adoption will have a material impact on the financial position, results of operations or cash flows. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures In October 2023, FASB issued Accounting Standard Update (“ASU”) 2023-09, Income Taxes (Topic 740), Improvement to Income Tax Disclosures. ASU 2023-09 will require all entities to disclose more detailed information in their reconciliation of their statutory tax rate to their effective tax rate. This requires PBEs to include incremental detail in a numerical, tabular format, while all other entities will do so through enhanced qualitative disclosures. The ASU also requires entities to disclose more detailed information about income taxes paid, including by jurisdiction; pretax income (or loss) from continuing operations; and income tax expense (or benefit). The updated disclosure requirements are to be adopted for annual periods beginning after December 15, 2023. The Company does not anticipate adoption will have a material impact on the financial position, results of operations or cash flows. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
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. ● 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. ● 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. ● 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. The majority of the Company’s residential customers have entered into month-to-month contracts. Whereas business customers have entered into either month-to-month contracts or non-cancellable contracts for subscription services with an average contract term of 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. Other business services revenue also includes recurring charges for wholesale and colocation services. 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. Government Assistance The Company adopted ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance prospectively The Company receives government assistance from the CAF BLS for certain network build-out construction projects. The Company accounts for the assistance received as a reduction to property, plant and equipment, as the primary conditions for receipt of these grants are to build-out the broadband network. If the assistance received is greater than the cost of the asset constructed, the excess is recognized as revenue upon completion of the project build-out. For the years ended December 31, 2023, 2022 and 2021, the Company recognized $2.3 million, $3.4 million and $3.3 million, respectively, in HSD residential subscription revenue related to excess funding received over the cost of construction for network build-out projects completed. The Company will continue to receive funding related to these programs through December 31, 2028 and will continue to recognize this funding as revenue. The build-out obligations were completed and accepted as of December 31, 2022. Revenue by Service Offering The following table presents revenue by service offering: Year ended December 31, 2023 2022 2021 (in millions) Residential subscription HSD(1) $ 355.2 $ 339.9 $ 329.0 Video 146.3 173.5 204.1 Telephony 21.7 24.3 28.5 Total Residential subscription $ 523.2 $ 537.7 $ 561.6 Business subscription HSD $ 75.2 $ 72.2 $ 70.1 Video 11.3 11.7 11.4 Telephony 25.9 27.1 28.9 Total business subscription $ 112.4 $ 111.0 $ 110.4 Total subscription services revenue 635.6 648.7 672.0 Other business services revenue(2) 21.0 21.2 22.3 Other revenue 30.1 35.0 31.4 Total revenue $ 686.7 $ 704.9 $ 725.7 (1) Includes revenue recognized of $2.3 million, $3.4 million and $3.3 million related to the CAF BLS for the years ended December 31, 2023, 2022 and 2021, respectively. (2) Includes wholesale and colocation lease revenue of $19.4 million, $19.1 million, and $19.4 million for the years ended December 31, 2023, 2022, and 2021, respectively. Promotional Costs The Company recognizes upfront promotional gift cards given to customers as a deferred promotional cost. Promotional costs are amortized over the estimated customer life, which generally ranges from three five The following table summarizes the activity of promotional costs: Year ended December 31, 2023 2022 2021 (in millions) Balance at beginning of period $ 18.0 $ 9.5 $ 3.4 Deferral 9.8 13.3 8.2 Amortization (7.4) (4.8) (2.1) Balance at end of period $ 20.4 $ 18.0 $ 9.5 The following table presents the current and non-current portion of promotional costs for the periods presented: December 31, 2023 December 31, 2022 (in millions) Current promotional costs 8.0 6.1 Non-current promotional costs 12.4 11.9 Total promotional costs $ 20.4 $ 18.0 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 five The following table summarizes the activity of costs of obtaining contracts with customers: Year ended December 31, 2023 2022 2021 (in millions) Balance at beginning of period $ 39.5 $ 37.3 $ 31.8 Deferral 19.2 16.6 15.5 Amortization (16.3) (14.4) (10.0) Balance at end of period $ 42.4 $ 39.5 $ 37.3 The following table presents the current and non-current portion of costs of obtaining contracts with customers for the periods presented: December 31, 2023 December 31, 2022 (in millions) Current costs of obtaining contracts with customers $ 16.5 $ 15.6 Non-current costs of obtaining contracts with customers 25.9 23.9 Total costs of obtaining contracts with customers $ 42.4 $ 39.5 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 30 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 Company’s consolidated balance sheets. The following tables present the activity of current and non-current contract liabilities: Year ended December 31, 2023 2022 2021 (in millions) Balance at beginning of period $ 2.7 $ 3.3 $ 2.9 Deferral 10.7 11.9 12.4 Revenue recognized (10.9) (12.5) (12.0) Deferral $ 2.5 $ 2.7 $ 3.3 The following table presents the current and non-current portion of contract liabilities as of the periods presented: December 31, 2023 December 31, 2022 (in millions) Current contract liabilities $ 2.2 $ 2.4 Non-current contract liabilities 0.3 0.3 Total contract liabilities $ 2.5 $ 2.7 Unsatisfied Performance Obligations Revenue from month-to-month residential subscription service contracts have historically represented a significant portion of the Company’s 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 and other business services revenue to be recognized in future periods related to performance obligations which have not been satisfied or are partially unsatisfied as of December 31, 2023 is set forth in the table below: 2024 2025 2026 Thereafter Total (in millions) Subscription services $ 49.4 $ 26.9 $ 8.7 $ 3.1 $ 88.1 Other business services 3.1 1.5 0.6 0.1 5.3 Total expected revenue $ 52.5 $ 28.4 $ 9.3 $ 3.2 $ 93.4 Provision for Doubtful Accounts The provision for doubtful accounts and the allowance for doubtful accounts are based on the aging of the individual receivables, historical trends and current and anticipated future economic conditions. The Company manages credit risk by disconnecting services to customers who are delinquent, generally after 100 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 trade accounts receivable: Year ended December 31, 2023 2022 2021 (in millions) Accounts receivable - trade $ 45.5 $ 44.2 $ 45.2 Allowance for doubtful accounts: Balance at beginning of period $ 4.3 $ 4.3 $ 6.7 Provision charged to expense(1) 12.7 6.0 8.3 Accounts written off, net of recoveries (10.3) (6.0) (10.7) Balance at end of period $ 6.7 $ 4.3 $ 4.3 Accounts receivable - trade, net of allowance for doubtful accounts $ 38.8 $ 39.9 $ 40.9 (1) During 2022, the Company released $1.6 million of reserves established in 2020 related to COVID-19. The Company did no t release such reserves during the years ended December 31, 2023 and 2021. |
Plant, Property and Equipment,
Plant, Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Plant, Property and Equipment, Net | |
Plant, Property and Equipment, Net | 4. Property, Plant and Equipment Property, plant and equipment consist of the following: December 31, December 31, 2023 2022 (in millions) Distribution facilities $ 1,510.6 $ 1,341.1 Customer premise equipment 274.9 272.3 Head-end equipment 296.5 256.7 Computer equipment and software 182.0 156.4 Telephony infrastructure 48.0 52.4 Buildings and leasehold improvements 33.4 33.4 Vehicles 28.1 22.9 Office and technical equipment 19.1 19.1 Land 4.4 4.4 Construction in progress (including material inventory and other) 76.6 43.5 Total property, plant and equipment 2,473.6 2,202.2 Less accumulated depreciation (1,643.2) (1,476.4) $ 830.4 $ 725.8 Depreciation expense for the years ended December 31, 2023, 2022 and 2021, was $192.8 million, $178.9 million, and $168.9 million, respectively. Included in depreciation and amortization expense in the consolidated statement of operations were net losses on sales of operating assets of $0.4 million, net gains of $1.1 million, and nil for the years ended December 31, 2023, 2022, and 2021, respectively. The Company recognized insignificant asset write-offs for the years ended December 31, 2023, 2022 and 2021. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | 5. 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, 2023, financing lease assets of $31.2 million are included in property, plant and equipment current long-term 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 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. The Company’s 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. Lease components are classified as follows: Year ended December 31, Classification 2023 2022 (in millions) Finance lease cost Amortization of leased asset Depreciation $ 9.3 $ 8.9 Interest on lease liabilities Interest expense 1.1 0.9 Operating lease cost(1) Operating expense 7.5 6.2 Sublease income(2) Other income (0.9) (0.8) Net lease cost $ 17.0 $ 15.2 (1) Includes short-term lease and variable costs of $1.5 and $0.7 million for the years ended December 31, 2023 and 2022, respectively. (2) The Company has four total sublease agreements of which three expire in 2024 and one expires in 2029. The subleases are for office and warehouse space. The following table presents aggregate lease maturities as of December 31, 2023: Finance Leases Operating Leases Total (in millions) 2024 $ 12.2 $ 5.5 $ 17.7 2025 7.7 5.2 12.9 2026 4.5 4.2 8.7 2027 1.8 3.2 5.0 2028 0.6 2.9 3.5 Thereafter — 5.9 5.9 Total lease payments 26.8 26.9 53.7 Less: interest 2.2 4.6 6.8 Present value of lease liabilities $ 24.6 $ 22.3 $ 46.9 The following table presents aggregate lease maturities as of December 31, 2022: Finance Leases Operating Leases Total (in millions) 2023 $ 11.1 $ 5.7 $ 16.8 2024 7.2 4.8 12.0 2025 2.7 3.4 6.1 2026 0.6 2.2 2.8 2027 0.1 1.2 1.3 Thereafter — 1.3 1.3 Total lease payments 21.7 18.6 40.3 Less: interest 1.1 2.1 3.2 Total lease payments $ 20.6 $ 16.5 $ 37.1 The following table presents weighted average remaining lease terms and discount rates: Year ended December 31, 2023 2022 Weighted-average remaining lease term (in years) Finance Leases 2.7 2.2 Operating Leases 5.8 4.0 Weighted-average discount rate Finance Leases 6.06 % 4.59 % Operating Leases 6.41 % 5.88 % The following table presents other information related to operating and finance leases: Year ended December 31, 2023 2022 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5.4 $ 5.3 Operating cash flows from finance leases 1.1 0.9 Financing cash flows from finance leases 12.2 12.1 Right-of-use assets obtained in exchange for lease obligations: Finance leases 16.3 10.3 Operating leases 11.0 2.7 |
Franchising Operating Rights an
Franchising Operating Rights and Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Franchising Operating Rights and Goodwill | |
Franchising Operating Rights and Goodwill | 6. Franchise Operating Rights & Goodwill Changes in the carrying amounts of the Company’s franchise operating rights and goodwill during 2023 and 2022 are set forth below: January 1, December 31, 2023 Impairment 2023 (in millions) Franchise operating rights $ 585.1 $ (306.8) $ 278.3 Goodwill 225.1 — 225.1 $ 810.2 $ (306.8) $ 503.4 January 1, December 31, 2022 Impairment 2022 (in millions) Franchise operating rights $ 620.1 $ (35.0) $ 585.1 Goodwill 225.1 — 225.1 $ 845.2 $ (35.0) $ 810.2 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 lowest level of identifiable cash flows, which 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 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 Company’s 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. During the second, third and fourth quarters of 2023, the Company determined that due to declining cash flows in certain markets, a triggering event had occurred that required an interim impairment analysis. Key assumptions utilized in the analyses include cash flow projections, including revenue growth rates ranging from approximately (69.0)% to 17.0% and customer attrition rates ranging from approximately 17.0% to 42.0%, and a discount rate of 15.5%. As a result of the interim impairment analyses performed in each period, the estimated fair value of certain franchise operating right assets was determined to be below the carrying value, which resulted in the recognition of non-cash impairment losses. The table below outlines the total impairment charges recognized in each market for the periods presented: Year Ended December 31, 2023 2022 (in millions) Columbus, GA $ 48.1 $ — Huntsville, AL 88.0 28.5 Augusta, GA 50.4 — Montgomery, AL 40.0 — Charleston, SC 17.0 — Panama City, FL 30.5 6.5 Valley, AL 12.5 — Knoxville, TN 7.8 — Newnan, GA 12.0 — Dothan, AL 0.5 — Total $ 306.8 $ 35.0 The Company recognized non-cash impairment losses of $306.8 million, $35.0 million, and nil for the years ended December 31, 2023, 2022, and 2021, respectively. The primary driver of the impairment charges was a decline in the estimated fair market value of indefinite-lived intangible assets in certain markets. For the year ended December 31, 2023, the decline is primarily due to declining cash flows in the markets listed above and an increase in the discount rate used to estimate fair value, combined with the decline in the Company’s common stock price. For the year ended December 31, 2022, the decline was primarily due to the decline in the Company’s stock and revisions to market-level forecasts. The impairment charges do not have an impact on the Company’s 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 level utilizing both quantitative and qualitative methods. Qualitative analysis is performed for goodwill in the event the previous analysis indicates that there is a significant margin between estimated fair value and carrying value of goodwill, and that it is more likely than not that the estimated fair value exceeds the carrying value. In the event that a quantitative analysis is performed, any excess of the carrying value of goodwill over the estimated fair value of goodwill is expensed as an impairment loss. The Company determines the estimated fair value utilizing a market approach that incorporates the approximate market capitalization as of the annual testing date, increased by the quoted market price of the Company’s debt and adjusted for a control premium. Based on the annual analysis performed for the current year and prior two years, the estimated fair value of goodwill exceeded the carrying value. As such, no impairment charge was recognized during these periods. During the second, third and fourth quarters of 2023, the Company determined that due to declining cash flows in certain markets, a triggering event had occurred that required an interim impairment analysis. In each interim impairment analysis performed, the estimated fair value of goodwill exceeded the carrying value, and as such, no impairment charge was recognized. The Company had accumulated goodwill impairment losses of $193.9 million for both the years ended December 31, 2023 and 2022. |
Intangible Assets Subject to Am
Intangible Assets Subject to Amortization | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets Subject to Amortization | |
Intangible Assets Subject to Amortization | 7. Intangible Assets Subject to Amortization Intangible assets subject to amortization consist primarily of multiple-dwelling unit and customer relationships. Changes in the carrying amounts are set for the periods presented: January 1, December 31, 2023 Acquisitions Amortization 2023 (in millions) Other $ 1.3 $ — $ (0.3) $ 1.0 January 1, December 31, 2022 Acquisitions Amortization 2022 (in millions) Other $ 1.7 $ — $ (0.4) $ 1.3 Amortization expense is included in depreciation and amortization expense in the accompanying consolidated statements of operations. Amortization expense for years ended December 31, 2023, 2022 and 2021 was $0.3 million, $0.4 million and $0.4 million, respectively. Scheduled amortization of the Company’s intangible assets as of December 31, 2023 is as follows: Amortization (in millions) 2024 $ 0.3 2025 0.2 2026 0.2 2027 0.1 2028 0.1 Thereafter 0.1 $ 1.0 |
Accrued Liabilities and Other
Accrued Liabilities and Other | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities and Other | |
Accrued Liabilities and Other | 8. Accrued Liabilities and Other Accrued liabilities and other consist of the following: December 31, December 31, 2023 2022 (in millions) Payroll and employee benefits $ 15.5 $ 22.2 Programming costs 11.4 15.9 Patent litigation settlement 10.0 1.3 Other accrued liabilities 6.8 3.6 Restructuring related to employee severance 5.4 4.1 Franchise and revenue sharing fees 4.9 5.6 Utility pole costs 2.4 1.6 Professional fees 2.1 5.0 Property, income, sales and use taxes 1.5 5.8 Customer cash collections (Transition Services Agreements) — 3.6 $ 60.0 $ 68.7 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Leases | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Debt and Finance Leases | |
Long Term Debt and Finance Leases | 9. Long-Term Debt and Finance Lease Obligations The following table summarizes the Company’s long-term debt and finance lease obligations: December 31, December 31, 2023 2022 Available borrowing Effective Outstanding Outstanding capacity interest rate(1) balance balance (in millions) Long-term debt: Term B Loans, net(2) $ — 8.35 % $ 711.3 $ 717.7 Revolving Credit Facility(3) 44.3 8.12 % 201.0 9.0 Total long-term debt $ 44.3 912.3 726.7 Other Financing 1.4 — Finance lease obligations 24.6 20.6 Total long-term debt, finance lease obligations and other 938.3 747.3 Debt issuance costs, net(4) (3.8) (4.6) Sub-total 934.5 742.7 Less current portion (18.8) (17.7) Long-term portion $ 915.7 $ 725.0 (1) Represents the effective interest rate in effect for all borrowings outstanding as of the year ended December 31, 2023 pursuant to each debt instrument including the applicable margin. (2) At December 31, 2023 and 2022 includes $4.1 million and $5.0 million of net unamortized discounts, respectively. (3) Available borrowing capacity at December 31, 2023 represents $250.0 million of total availability less borrowings of $201.0 million on the Revolving Credit Facility, and outstanding letters of credit of $4.7 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, 2023 and 2022 debt issuance costs include $3.0 million and $3.5 million related to Term B Loans and $0.8 million and $1.1 million related to the Revolving Credit Facility, respectively. On December 20, 2021, the Company entered into a secured credit agreement with Morgan Stanley Senior Funding, Inc., as administrative agent, collateral agent and issuing bank (the “Credit Agreement”). The Credit Agreement consists of (i) a Senior Secured Term B Loan in an aggregate principal amount of $730.0 million (“Term B Loan”) and (ii) a $250.0 million revolving credit commitment (“Revolving Credit Facility” together with the Term B Loan, the “Senior Secured Credit Facility”). The Term B Loan matures in December 2028 and bears interest at a rate equal to the Secured Overnight Financing Rate (“SOFR”) plus 3.00%, subject to a 50 basis point floor, and the revolving credit commitment bears interest at a rate equal to SOFR plus 2.75%, subject to a 50 basis point commitment fee rate for unused commitments, and matures in December 2026. The Term B Loan and Revolving Credit Facility are secured on a first-priority basis by a lien on substantially all of the Company’s assets, subject to certain exceptions and permitted liens. The Credit Agreement contains certain (a) restrictive covenants, including, but not limited to, restrictions on the entry into burdensome agreements, the prohibition of the incurrence of certain indebtedness secured by liens, restrictions on the ability to make certain payments and to enter into certain merger, consolidation, asset sale and affiliate transactions, and (b) financial maintenance covenants, including, but not limited to, a maximum leverage ratio, a minimum fixed charge ratio and a maximum secured indebtedness ratio. The Credit Agreement also contains representations and warranties, affirmative covenants and events of default customary for an agreement of its type. The Credit Agreement allows for the issuance of letters of credit. The aggregate amount of undrawn letters of credit cannot exceed $20.0 million and are used in the ordinary course of business and released when the respective contractual obligations have been fulfilled by the Company. The Company did not have any cash collateralized letters of credit as of December 31, 2023. On the date of re-financing, the Company repaid the unpaid principal balance of its Term B Loans under the previous eighth amendment (“Eighth Amendment”) to its previous credit agreement dated July 17, 2017, with JPMorgan Chase Bank, N.A., as the administrative agent and revolver agent. Under the Eighth Amendment, (i) the previous Term B loans matured on August 19, 2023 and bore interest, at the Company’s option, at a rate equal to ABR plus 2.25% or LIBOR plus 3.25%, and (ii) the borrowings under the revolving credit facility matured on May 31, 2022 and bore interest, at the Company's option, at a rate equal to ABR plus 2.00% or LIBOR plus 3.00%. As a result of the re-financing, the Company recorded a $3.2 million loss on early extinguishment of debt related to the write-off of unamortized debt issuance and third-party costs during the year ended December 31, 2021. As of December 31, 2023, the Company was in compliance with all debt covenants in the Credit Agreement. Amortization of debt issuance costs and debt discount, all of which are included in interest expense in the accompanying consolidated statements of operations, for the years ended December 31, 2023, 2022 and 2021 are as follows: December 31, 2023 2022 2021 (in millions) Amortization of deferred issuance costs $ 0.9 $ 0.9 $ 2.4 Amortization of debt discount 0.8 0.8 2.3 Principal maturities of our long-term debt, excluding finance lease obligations, as of December 31, 2023 are as follows: Long-term Debt (in millions) 2024 $ 7.3 2025 7.3 2026 208.3 2027 7.3 2028 686.2 $ 916.4 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | 10. 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 (“derivatives”), 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 Company’s risk management activities do not totally eliminate these risks. Consequently, these fluctuations could have a significant effect on the Company’s financial results. The Company’s 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. The Company’s outstanding derivatives had a notional amount of $1,323.5 million and the fair value was presented within accrued liabilities and other Gains on derivatives designated as cash flow hedges were included in the consolidated statements of comprehensive income for the periods below. Year ended December 31, 2021 (in millions) Interest rate swap contracts(1) Gain recorded in AOCI on derivatives, before tax $ 8.5 Tax impact (2.0) Gain recorded in AOCI on derivatives, net $ 6.5 (1) Gains (losses) on derivatives reclassified from AOCI into income are included in “ Interest expense ” in the consolidated statements of operations, the same income statement line item as the earnings effect of the hedged item. Losses recognized in the consolidated statements of operations for the year ended December 31, 2021 were $9.5 million. The Company did no t hold such instruments during the years ended December 31, 2023 and 2022. 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, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | 11. 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: ● Level 1, defined as observable inputs being quoted prices in active markets for identical assets; ● 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 ● 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 estimated fair value of the Company’s long-term debt is based on dealer quotes considering current market rates for the Company’s credit facility and is classified as Level 2. The ratio of the Company’s aggregate debt balance has trended from quoted market prices in active markets to quoted prices in non-active markets. The fair value of the Company’s long-term debt was valued at $661.7 million and $699.2 million as of December 31, 2023 and 2022, respectively. Long-term debt fair value does not include debt issuance costs and discounts. There were no transfers into or out of Level 1, 2 or 3 during the years ended December 31, 2023 and 2022. The Company’s 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, 2023 | |
Equity | |
Equity | 12. Equity Common Stock Repurchase Plan On October 4, 2022, the Company’s Board of Directors authorized the Company to repurchase up to $50.0 million of its outstanding common stock. The Company completed the Share Repurchase Program in June 2023 with approximately 4.9 million shares purchased for $50.4 million (including commissions). The following table summarizes the Company’s purchases of WOW common stock during the years ended December 31, 2023, 2022 and 2021. These shares are reflected as treasury stock in the Company’s consolidated balance sheets. Year ended December 31, 2023 2022 2021 (shares) Share buybacks 3,751,803 1,183,151 — Income tax withholding(1) 872,461 395,606 494,458 4,624,264 1,578,757 494,458 (1) Generally, the Company withholds shares to cover the income tax withholding of the employee upon vesting. The total fair value of restricted shares vested was $8.4 million, $30.4 million, and $28.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation | |
Stock-Based Compensation | 13. Stock-based Compensation The Company’s stock incentive plan, the 2017 Omnibus Incentive Plan, provides for grants of stock options, restricted stock and performance awards. The Company’s directors, officers and other employees and persons who engage in services for the Company are eligible for grants under the plan. The stock incentive plan has authorized 15,924,128 shares of the Company’s common stock to be available for issuance, subject to adjustment in the event of a reorganization, stock split, merger or similar change in the Company’s corporate structure or the outstanding shares of common stock. Restricted stock awards generally vest ratably over a four year period based on the date of grant. 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, 2023, 2022 and 2021 the Company recorded $16.8 million, $25.8 million and $15.3 million of total non-cash compensation expense, respectively. Certain awards were modified during the year ended December 31, 2021 and were classified as liabilities. The non-cash compensation expense associated with these awards was nil and $0.5 million for the years ended December 31, 2023 and 2022, respectively, and is included in total non-cash compensation expense. During the year ended December 31, 2023, approximately $0.3 million of liability classified awards were settled with shares of restricted stock. The non-cash compensation expense is reflected in selling, general and administrative expense and operating expenses (excluding depreciation and amortization), depending on the recipients’ duties, in the Company’s consolidated statements of operations. Total unrecognized non-cash compensation expense as of December 31, 2023 was $20.0 million and is expected to be recognized over a weighted-average period of 2.3 years. The following table summarizes the restricted stock award activity for the years ended December 31, 2023, 2022 and 2021. Year ended December 31, 2023 2022 2021 Weighted Average Weighted Average Weighted Average Shares Grant Price Shares Grant Price Shares Grant Price Outstanding, beginning of period 3,223,995 $ 11.29 4,325,124 $ 9.10 4,990,971 $ 5.71 Granted 2,112,770 8.15 867,064 17.26 1,422,358 17.17 Vested (2,537,286) 8.86 (1,705,531) 8.55 (1,704,596) 6.23 Forfeited (348,453) 12.56 (262,662) 12.66 (383,609) 7.71 Outstanding, end of period(1) 2,451,026 $ 10.89 3,223,995 $ 11.29 4,325,124 $ 9.10 (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, 2023, 2022 and 2021. New Performance Share Grant On March 3, 2023, the Company granted 264,028 performance shares which will vest based on the Company’s achievement level relative to the following performance measures at December 31, 2025: 50% based upon the Company’s Total Shareholder Return (“TSR”) relative to the TSRs of the Company’s peer group and 50% based on the Company’s three-year cumulative EBITDA metric. EBITDA is defined as net income (loss) before net interest expense, income taxes, depreciation and amortization (including impairments), impairment losses on intangibles and goodwill, the write-off of any asset, loss on early extinguishment of debt, integration and restructuring expenses and all non-cash charges and expenses (including stock compensation expense) and certain other income and expenses. Upon achievement of the minimum threshold performance metric, the grantee may earn 50% to 200% of their respective target shares based on the performance goal. The performance shares based on relative TSR performance have a market condition and are valued using a Monte Carlo simulation model on the grant date, which resulted in a grant date fair value of $16.19 per share. The estimated fair value is amortized to expense over the requisite service period, which ends on December 31, 2025. The following assumptions were used in the Monte Carlo simulation for computing the grant date fair value of the performance shares with a market condition: risk-free interest rate of 4.62%, volatility factors in the expected market price of the Company's common shares of 51.61% and an expected life of three years. The performance shares based on cumulative EBITDA have a performance condition and are valued utilizing the award fair value based on the closing stock price on the accounting grant date. Existing Performance Share Grants The Company began issuing performance shares to certain executives in 2020. Each performance share grant has a performance period of three years and are based on the Company’s achievement level relative to: 50% based upon the Company’s TSR relative to the TSRs of the Company’s peer group and 50% based on the Company’s three-year cumulative EBITDA metric. The performance shares based on three-year cumulative EBITDA have a performance condition. The probability of achieving the performance condition is assessed at each reporting period. If it is deemed probable that the performance condition will be met, compensation cost will be recognized based on the closing price per share of the Company's common stock on the date of the grant multiplied by the number of awards expected to be earned. If it is deemed that it is not probable that the performance condition will be met, the Company will discontinue the recognition of compensation cost and any compensation cost previously recorded will be reversed. As of December 31, 2023, the Company determined that it was not probable that the performance condition based on three-year cumulative EBITDA would be met for the performance shares issued in 2022 and 2023. As a result of this conclusion, the Company reversed approximately $0.6 million of stock compensation expense recognized during the year ended December 31, 2022 related to these awards. Achievement of a portion of the performance conditions associated with the 2021 performance shares was deemed probable. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | 14. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities 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. Income Tax Benefit For the years ended December 31, 2023, 2022, and 2021, the Company recorded income tax benefit from continuing operations as shown below. The tax provision in future periods will vary based on current and future temporary differences, as well as future operating results. Year ended December 31, 2023 2022 2021 (in millions) Current tax (expense) benefit Federal $ (1.7) $ (16.1) $ — State (1.8) 4.2 (1.6) Total current tax (3.5) (11.9) (1.6) Deferred tax benefit (expense) Federal 72.8 23.7 22.2 State 26.8 8.5 (6.8) Total deferred tax 99.6 32.2 15.4 Income tax benefit $ 96.1 $ 20.3 $ 13.8 The Company reported total income tax benefit of $96.1 million and $20.3 million, and income tax expense $292.9 million (inclusive of discontinued operations) during the years ended December 31, 2023, 2022 and 2021, respectively. The provision for income taxes incurred is different from the amount calculated by applying the applicable federal income tax rate to the income from continuing operations before income tax benefit. The significant items causing these differences are as follows: Year ended December 31, 2023 2022 2021 (in millions) Statutory federal income taxes $ 80.8 $ 4.8 $ 17.3 State income taxes 23.3 (0.3) 0.6 Tax status & tax rate change 0.3 (0.3) 0.1 Other true-ups (0.4) 0.5 0.3 Equity compensation 0.9 2.9 3.8 Other permanent differences (2.9) (2.6) (2.4) Research and development tax credits 2.9 3.4 2.5 Uncertain tax positions (1.7) 2.9 (0.1) Change in valuation allowance (7.1) 9.0 (8.3) Income tax benefit $ 96.1 $ 20.3 $ 13.8 The $7.1 million and $9.0 million changes in valuation allowance as of December 31, 2023 and December 31, 2022, respectively, are the result of changes in federal and state deferred tax assets related to net operating loss carryforwards and various state modifications. Deferred Income Taxes, Net The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2023 and 2022 are as follows: December 31, 2023 2022 (1) (in millions) Deferred tax assets Business interest limitation $ 13.6 $ 0.2 Net operating loss carryforwards 77.8 76.7 Capitalized research expenses 35.3 24.7 Bad debt allowance 3.1 2.2 Stock compensation 3.6 5.4 SUT accruals 5.5 0.4 Lease liability 5.7 4.2 Other 5.6 8.0 Total deferred tax assets 150.2 121.8 Less: valuation allowance (33.7) (26.6) Deferred tax asset $ 116.5 $ 95.2 Deferred tax liabilities Depreciation and amortization $ (155.0) $ (149.1) Franchise operating rights (66.2) (151.8) Deferred promotional costs (5.3) (4.7) Deferred contract costs (10.1) (9.4) Right-of-use asset (5.2) (3.8) Other (0.4) (1.7) Total deferred tax liabilities (242.2) (320.5) Net deferred tax liabilities $ (125.7) $ (225.3) (1) Certain reclassifications have been made to conform with current period presentation. There was no change in the prior year net deferred tax liability as presented. 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. Based on this evaluation, a valuation allowance of $33.7 million, $26.6 million, and $35.5 million has been recorded as of December 31, 2023, 2022, and 2021, respectively, to recognize only the portion of the deferred tax asset, primarily related to state net operating loss carryforwards, that is more likely than not to be realized. The following table summarizes the changes in our valuation allowance for deferred tax assets: 2023 2022 2021 (in millions) Balance at beginning of period $ 26.6 $ 35.5 $ 30.8 Additions charged to income tax expense and other accounts 8.7 0.3 6.6 Deductions from reserves (1.6) (9.2) (1.9) Balance at end of period $ 33.7 $ 26.6 $ 35.5 Net Operating Loss and Credit Carryforwards As of December 31, 2023, the Company had approximately $197.7 million of federal tax net operating loss carryforwards, which expire between the years 2025 through 2037. In addition, as of December 31, 2023, the Company had state tax net operating loss carryforwards of $796.3 million, of which $279.9 million are indefinite lived and $516.4 million expire between 2024 and 2040. As a result of the IPO (effective May 25, 2017), the Company experienced an “ownership change” as defined in Section 382 of the Internal Revenue Code resulting in limitations on the Company’s use of its existing federal and state net operating losses and capital losses. After December 31, 2023, $197.7 million of the Company’s federal tax loss carryforwards are subject to Section 382 and other restrictions. Uncertain Tax Positions 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: Year ended December 31, 2023 2022 2021 (in millions) Unrecognized tax benefits—January 1st $ 12.2 $ 14.2 $ 13.7 Gross increases—tax positions in prior period — 0.1 — Gross decreases—tax positions in prior period — (0.4) (0.7) Gross increases—tax positions in current period 0.8 1.0 1.2 Settlements — (2.7) — Unrecognized tax benefits—December 31st $ 13.0 $ 12.2 $ 14.2 As of December 31, 2023, the Company recorded gross unrecognized tax benefits of $13.0 million, all of which, if recognized, would affect the Company’s 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 $1.3 million, $0.4 million, and $1.4 million for years ended December 31, 2023, 2022 and 2021, respectively. The Company does not expect a material change in unrecognized tax benefits or interest reversal in the next 12 months. 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 Company’s 2019 through 2023 tax years remain open for examination and assessment. Years prior to 2019 remain open solely for purposes of examination of the Company’s loss and credit carryforwards. 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, 2023, nor do we anticipate a material impact in the next 12 months. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per Common Share | |
Earnings per Common Share | 15. Earnings (Loss) per Common Share Basic earnings or loss per share attributable to the Company’s 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 or earnings per share for the years presented because the Company incurred a net loss from continuing operations and the effect of inclusion would have been anti-dilutive. Year ended December 31, 2023 2022 2021 (in millions, except share data) Loss from continuing operations $ (287.7) $ (2.5) $ (68.6) Income from discontinued operations $ — $ — $ 839.1 Net (loss) income $ (287.7) $ (2.5) $ 770.5 Basic weighted-average shares 81,595,766 83,930,984 82,720,934 Effect of dilutive securities: Restricted stock awards — — — Diluted weighted-average shares 81,595,766 83,930,984 82,720,934 Basic and diluted (loss) earnings per common share - continuing operations Basic $ (3.53) $ (0.03) $ (0.83) Diluted $ (3.53) $ (0.03) $ (0.83) Basic and diluted earnings per common share - Basic $ — $ — $ 10.14 Diluted $ — $ — $ 10.14 Basic and diluted (loss) earnings per common share Basic $ (3.53) $ (0.03) $ 9.31 Diluted $ (3.53) $ (0.03) $ 9.31 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefits | |
Employee Benefits | 16. Employee Benefits 401(k) Savings Plan The Company adopted a defined contribution retirement plan which complies with Section 401(k) of the Internal Revenue Code. Substantially all employees are eligible to participate in the plan. The Company matches 100% of the participant’s voluntary contributions up to 3% and 50% of the next 2% subject to a limit of the first 4% of the participant’s compensation. Company matching contributions vest 25% annually over a four-year period. During the years ended December 31, 2023, 2022 and 2021, the Company recorded $3.4 million, $3.2 million and $3.2 million, respectively, of expense related to the Company’s matching contributions to the 401(k) plan. 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 Company’s financial statements. The assets of the plan are specifically designated as available to the Company solely for the purpose of paying benefits under the Company’s 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: December 31, 2023 2022 (in millions) Prepaid expenses and other (current assets) $ 2.3 $ 1.9 Accrued liabilities and other (current liabilities) $ 2.3 $ 1.9 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 17. 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: ● 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 $7.1 million, $5.5 million and $6.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. ● 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 $8.2 million, $10.0 million and $11.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. Programming Contracts In the normal course of business, the Company enters into numerous contracts to license programming content for which the payment obligations are fully contingent on the number of subscribers to whom it provides the content. These contracts typically have annual rate increases and term lengths of three Legal and Other Contingencies On March 7, 2018, Sprint Communications Company LP (“Sprint”) filed a complaint in the U.S. District Court for the District of Delaware alleging that the Company infringed a set of patents directed to the provision of Voice over Internet Protocol services. This lawsuit was part of a larger, decade long patent enforcement campaign by Sprint aimed at numerous service providers in the broadband and telecommunications industry. In April 2023, prior to the commencement of the Company’s jury trial on April 24, 2023, the Company and Sprint entered into settlement discussions and also conducted a formal mediation. Those discussions culminated in a negotiated resolution of the pending litigation, for which the parties executed a binding term sheet on April 19, 2023, and a Confidential Settlement and License Agreement on April 28, 2023. The terms of the settlement are confidential, but the agreement does obligate the Company to make payments to Sprint over the course of three years in exchange for a full release of all liability. The Company intends to pursue funding contributions for that settlement from third parties implicated by Sprint’s claims and the Company’s defense, including indemnification claims against the Company’s various affected equipment providers. As a result of the settlement, the Company accrued $46.8 million as of March 31, 2023, and the associated expense is included in selling, general and administrative expenses. The Company does not believe that the settlement will have a material impact on the Company’s capital expenditures. 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 Company’s existing accruals for pending matters are 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 interests in 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. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations | |
Discontinued Operations | 18. Discontinued Operations Sale of Five Service Areas On June 30, 2021, WOW entered into two separate asset sales with two different buyers. On September 1, 2021, WOW completed the sale of its Cleveland and Columbus, Ohio markets and on November 1, 2021, WOW completed the sale of its Chicago, Illinois, Evansville, Indiana and Baltimore, Maryland markets. The Company presented these markets as discontinued operations in the consolidated statements of operations and excluded from continuing operations for all periods in which such discontinued operations are presented. Results of discontinued operations include all revenues and direct expenses of these markets. General corporate overhead is not allocated to discontinued operations. The following table presents information regarding certain components of income from discontinued operations: Year ended December 31, 2021 (in millions) Revenue $ 308.3 Costs and expenses: Operating (excluding depreciation and amortization) 112.0 Selling, general and administrative 11.8 Depreciation and amortization 41.0 164.8 Income from operations 143.5 Other income (expense): Interest income (expense) 0.4 Gain on sale of assets, net 1,001.8 Other income, net 0.1 Income from discontinued operations before provision for income tax 1,145.8 Income tax expense (306.7) Income from discontinued operations $ 839.1 The following table presents revenue by service offering from discontinued operations: Year ended December 31, 2021 (in millions) Residential subscription HSD $ 150.1 Video 103.2 Telephony 11.5 Total residential subscription $ 264.8 Business subscription HSD $ 17.8 Video 2.7 Telephony 8.4 Total business subscription $ 28.9 Total subscription services revenue 293.7 Other business services revenue 1.6 Other revenue 13.0 Total revenue $ 308.3 The following table presents specified items of cash flow and significant non-cash items of discontinued operations: Year ended December 31, 2021 (in millions) Specified items of cash flow: Capital expenditures $ 45.4 Non-cash operating activities: Operating lease additions $ 0.7 Non-cash investing activities: Capital expenditure accounts payable and accruals $ — In connection with the asset sales, the Company entered into two separate transition services agreements under which WOW continued to provide certain services to each of the buyers. Under the transition services agreements, the buyers elected a variety of services, including but not limited to: information technology, network, business support services, etc. The term of the transition services agreements were for 12 months following each closing date, respectively, with two optional three-month extensions. As of December 31, 2023, the transition services agreements with both buyers have been completed. None of the costs related to the employees, processes or systems utilized to provide the services under the transition services agreements were allocated to discontinued operations. Income earned under these agreements is presented in other income, net in the consolidated statement of operations and associated receivables are presented in accounts receivable – other, net in the consolidated balance sheet. The Company recognized $1.0 million, $15.6 million and $8.5 million of income related to the transition service agreements for the years ended December 31, 2023, 2022 and 2021, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | 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. |
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 the aging of the individual receivables, historical trends and current and anticipated future economic conditions. The Company’s 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 100 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. See Note 3 – Revenue from Contracts with Customers for a discussion of changes in the allowance for doubtful accounts for the periods presented. |
Prepaid Expenses and Other | Prepaid Expenses and Other Prepaid expenses and other primarily consists of short-term deferred contract costs, short-term deferred promotional costs, and prepaid software and insurance costs. Prepayments are recognized as operating expenses or selling, general, and administrative expense over the life of the underlying agreements. |
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: Estimated Useful Asset Category Lives (Years) Office and technical equipment 3 - 10 Computer equipment and software 3 Customer premise equipment 5 Vehicles 5 Telephony infrastructure 5 - 7 Headend equipment 7 Distribution facilities 10 Building and leasehold improvements 5 - 20 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 Company’s franchise operating rights were acquired through business combinations. The Company does not amortize franchise operating rights as it has been 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 was determined to be 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 6 – Franchise Operating Rights & Goodwill for discussion of impairment charges recognized for the periods presented. 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 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 determined it had one reporting unit as part of its annual goodwill analysis on October 1. See Note 6 – Franchise Operating Rights & Goodwill for a discussion of impairment charges recognized for the periods presented. |
Other Noncurrent Assets | Other Noncurrent Assets Other noncurrent assets are comprised primarily of long-term deferred contract costs and long-term deferred promotional costs. These amounts are recognized as operating expenses, selling, general, and administrative expense or deduction to revenue 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 debt’s variable rate of interest and the Company’s own credit risk and risk of nonperformance. 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. |
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. The amortization of debt issuance costs is included in interest expense on the accompanying consolidated statements of operations. |
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 Company’s 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 Company’s 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 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. The Company’s trade receivables are subject to credit risk, as customer deposits are generally not required. The Company’s 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 customer’s service. |
Costs and Expenses | Costs and Expenses The Company’s expenses consist of operating, selling, general and administrative expenses, depreciation and amortization expense and interest expense. Business interruption insurance proceeds are recorded to operating expense in the statements of operations. |
Programming Costs | Programming Costs 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. |
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, 2023, 2022 and 2021 was $36.6 million, $36.5 million and $39.5 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. 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 Company’s 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 Company’s 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 10 – Derivative Instruments and Hedging Activities for a discussion of hedging activities for the periods presented. |
Stock-based Compensation | Stock-based Compensation The Company’s stock-based compensation consists of liability and equity based restricted stock awards with service, performance and market conditions. Restricted stock awards are measured at the grant date fair value and amortized to stock compensation expense over the requisite service period. The fair value of restricted stock awards with market conditions are measured utilizing Monte Carlo simulations. Awards with performance or market conditions will vest based on the Company’s achievement level relative to specific requirements. For all restricted stock awards, the Company accounts for forfeitures as they occur. Refer to Note 13 – Stock-Based Compensation for a discussion of the Company’s stock-based compensation for the periods presented. |
Segments | Segments The Company’s chief operating decision maker (“CODM”) regularly reviews the Company’s results to assess the Company’s performance and allocates resources at a consolidated level. Although the consolidated results include the Company’s 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 Company’s 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 | Recently Issued Accounting Pronouncements ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280), Improvement to Reportable Segment Disclosures. ASU 2023-07 will require public business entities (“PBEs”) to disclose, on an annual and interim basis, significant segment expenses provided to the chief operating decision maker (“CODM”) including a profit and loss; an amount for other segment items by reportable segment, including a description of composition; annual disclosures about a reportable segment’s profit or loss; if a CODM uses more than one measure of a segment’s profit or loss the PBE may report one or more of those additional measures; and requires that a PBE disclose the title and position of the CODM. The updated disclosure requirements are to be adopted for annual periods beginning after December 15, 2023. The Company does not anticipate adoption will have a material impact on the financial position, results of operations or cash flows. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures In October 2023, FASB issued Accounting Standard Update (“ASU”) 2023-09, Income Taxes (Topic 740), Improvement to Income Tax Disclosures. ASU 2023-09 will require all entities to disclose more detailed information in their reconciliation of their statutory tax rate to their effective tax rate. This requires PBEs to include incremental detail in a numerical, tabular format, while all other entities will do so through enhanced qualitative disclosures. The ASU also requires entities to disclose more detailed information about income taxes paid, including by jurisdiction; pretax income (or loss) from continuing operations; and income tax expense (or benefit). The updated disclosure requirements are to be adopted for annual periods beginning after December 15, 2023. The Company does not anticipate adoption will have a material impact on the financial position, results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Schedule of estimated useful lives of property, plant and equipment | Estimated Useful Asset Category Lives (Years) Office and technical equipment 3 - 10 Computer equipment and software 3 Customer premise equipment 5 Vehicles 5 Telephony infrastructure 5 - 7 Headend equipment 7 Distribution facilities 10 Building and leasehold improvements 5 - 20 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Contract assets | |
Schedule of revenue by service offering | Year ended December 31, 2023 2022 2021 (in millions) Residential subscription HSD(1) $ 355.2 $ 339.9 $ 329.0 Video 146.3 173.5 204.1 Telephony 21.7 24.3 28.5 Total Residential subscription $ 523.2 $ 537.7 $ 561.6 Business subscription HSD $ 75.2 $ 72.2 $ 70.1 Video 11.3 11.7 11.4 Telephony 25.9 27.1 28.9 Total business subscription $ 112.4 $ 111.0 $ 110.4 Total subscription services revenue 635.6 648.7 672.0 Other business services revenue(2) 21.0 21.2 22.3 Other revenue 30.1 35.0 31.4 Total revenue $ 686.7 $ 704.9 $ 725.7 (1) Includes revenue recognized of $2.3 million, $3.4 million and $3.3 million related to the CAF BLS for the years ended December 31, 2023, 2022 and 2021, respectively. (2) Includes wholesale and colocation lease revenue of $19.4 million, $19.1 million, and $19.4 million for the years ended December 31, 2023, 2022, and 2021, respectively. |
Schedule of activity of contract liabilities and current and non-current portion of contract liabilities | Year ended December 31, 2023 2022 2021 (in millions) Balance at beginning of period $ 2.7 $ 3.3 $ 2.9 Deferral 10.7 11.9 12.4 Revenue recognized (10.9) (12.5) (12.0) Deferral $ 2.5 $ 2.7 $ 3.3 December 31, 2023 December 31, 2022 (in millions) Current contract liabilities $ 2.2 $ 2.4 Non-current contract liabilities 0.3 0.3 Total contract liabilities $ 2.5 $ 2.7 |
Summary of expected revenue to be recognized in future periods related to performance obligations which have not been satisfied or are partially unsatisfied | 2024 2025 2026 Thereafter Total (in millions) Subscription services $ 49.4 $ 26.9 $ 8.7 $ 3.1 $ 88.1 Other business services 3.1 1.5 0.6 0.1 5.3 Total expected revenue $ 52.5 $ 28.4 $ 9.3 $ 3.2 $ 93.4 |
Schedule of change in the allowance for doubtful accounts for trade accounts receivable | Year ended December 31, 2023 2022 2021 (in millions) Accounts receivable - trade $ 45.5 $ 44.2 $ 45.2 Allowance for doubtful accounts: Balance at beginning of period $ 4.3 $ 4.3 $ 6.7 Provision charged to expense(1) 12.7 6.0 8.3 Accounts written off, net of recoveries (10.3) (6.0) (10.7) Balance at end of period $ 6.7 $ 4.3 $ 4.3 Accounts receivable - trade, net of allowance for doubtful accounts $ 38.8 $ 39.9 $ 40.9 (1) During 2022, the Company released $1.6 million of reserves established in 2020 related to COVID-19. The Company did no t release such reserves during the years ended December 31, 2023 and 2021. |
Promotional costs | |
Contract assets | |
Schedule of activity of capitalized contract costs and current and non-current portion of capitalized contract costs | The following table summarizes the activity of promotional costs: Year ended December 31, 2023 2022 2021 (in millions) Balance at beginning of period $ 18.0 $ 9.5 $ 3.4 Deferral 9.8 13.3 8.2 Amortization (7.4) (4.8) (2.1) Balance at end of period $ 20.4 $ 18.0 $ 9.5 The following table presents the current and non-current portion of promotional costs for the periods presented: December 31, 2023 December 31, 2022 (in millions) Current promotional costs 8.0 6.1 Non-current promotional costs 12.4 11.9 Total promotional costs $ 20.4 $ 18.0 |
Costs of obtaining contracts with customers | |
Contract assets | |
Schedule of activity of capitalized contract costs and current and non-current portion of capitalized contract costs | The following table summarizes the activity of costs of obtaining contracts with customers: Year ended December 31, 2023 2022 2021 (in millions) Balance at beginning of period $ 39.5 $ 37.3 $ 31.8 Deferral 19.2 16.6 15.5 Amortization (16.3) (14.4) (10.0) Balance at end of period $ 42.4 $ 39.5 $ 37.3 The following table presents the current and non-current portion of costs of obtaining contracts with customers for the periods presented: December 31, 2023 December 31, 2022 (in millions) Current costs of obtaining contracts with customers $ 16.5 $ 15.6 Non-current costs of obtaining contracts with customers 25.9 23.9 Total costs of obtaining contracts with customers $ 42.4 $ 39.5 |
Plant, Property and Equipment_2
Plant, Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Plant, Property and Equipment, Net | |
Schedule of plant, property and equipment | December 31, December 31, 2023 2022 (in millions) Distribution facilities $ 1,510.6 $ 1,341.1 Customer premise equipment 274.9 272.3 Head-end equipment 296.5 256.7 Computer equipment and software 182.0 156.4 Telephony infrastructure 48.0 52.4 Buildings and leasehold improvements 33.4 33.4 Vehicles 28.1 22.9 Office and technical equipment 19.1 19.1 Land 4.4 4.4 Construction in progress (including material inventory and other) 76.6 43.5 Total property, plant and equipment 2,473.6 2,202.2 Less accumulated depreciation (1,643.2) (1,476.4) $ 830.4 $ 725.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of lease costs | Year ended December 31, Classification 2023 2022 (in millions) Finance lease cost Amortization of leased asset Depreciation $ 9.3 $ 8.9 Interest on lease liabilities Interest expense 1.1 0.9 Operating lease cost(1) Operating expense 7.5 6.2 Sublease income(2) Other income (0.9) (0.8) Net lease cost $ 17.0 $ 15.2 (1) Includes short-term lease and variable costs of $1.5 and $0.7 million for the years ended December 31, 2023 and 2022, respectively. (2) The Company has four total sublease agreements of which three expire in 2024 and one expires in 2029. The subleases are for office and warehouse space. |
Schedule of lease maturities, Finance Leases, | The following table presents aggregate lease maturities as of December 31, 2023: Finance Leases Operating Leases Total (in millions) 2024 $ 12.2 $ 5.5 $ 17.7 2025 7.7 5.2 12.9 2026 4.5 4.2 8.7 2027 1.8 3.2 5.0 2028 0.6 2.9 3.5 Thereafter — 5.9 5.9 Total lease payments 26.8 26.9 53.7 Less: interest 2.2 4.6 6.8 Present value of lease liabilities $ 24.6 $ 22.3 $ 46.9 The following table presents aggregate lease maturities as of December 31, 2022: Finance Leases Operating Leases Total (in millions) 2023 $ 11.1 $ 5.7 $ 16.8 2024 7.2 4.8 12.0 2025 2.7 3.4 6.1 2026 0.6 2.2 2.8 2027 0.1 1.2 1.3 Thereafter — 1.3 1.3 Total lease payments 21.7 18.6 40.3 Less: interest 1.1 2.1 3.2 Total lease payments $ 20.6 $ 16.5 $ 37.1 |
Schedule of lease maturities, Operating Leases | The following table presents aggregate lease maturities as of December 31, 2023: Finance Leases Operating Leases Total (in millions) 2024 $ 12.2 $ 5.5 $ 17.7 2025 7.7 5.2 12.9 2026 4.5 4.2 8.7 2027 1.8 3.2 5.0 2028 0.6 2.9 3.5 Thereafter — 5.9 5.9 Total lease payments 26.8 26.9 53.7 Less: interest 2.2 4.6 6.8 Present value of lease liabilities $ 24.6 $ 22.3 $ 46.9 The following table presents aggregate lease maturities as of December 31, 2022: Finance Leases Operating Leases Total (in millions) 2023 $ 11.1 $ 5.7 $ 16.8 2024 7.2 4.8 12.0 2025 2.7 3.4 6.1 2026 0.6 2.2 2.8 2027 0.1 1.2 1.3 Thereafter — 1.3 1.3 Total lease payments 21.7 18.6 40.3 Less: interest 1.1 2.1 3.2 Total lease payments $ 20.6 $ 16.5 $ 37.1 |
Schedule of weighted average remaining lease term and discount rate | Year ended December 31, 2023 2022 Weighted-average remaining lease term (in years) Finance Leases 2.7 2.2 Operating Leases 5.8 4.0 Weighted-average discount rate Finance Leases 6.06 % 4.59 % Operating Leases 6.41 % 5.88 % |
Schedule of other information related to operating and finance leases | Year ended December 31, 2023 2022 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5.4 $ 5.3 Operating cash flows from finance leases 1.1 0.9 Financing cash flows from finance leases 12.2 12.1 Right-of-use assets obtained in exchange for lease obligations: Finance leases 16.3 10.3 Operating leases 11.0 2.7 |
Franchising Operating Rights _2
Franchising Operating Rights and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Franchising Operating Rights and Goodwill | |
Schedule of changes in the carrying amounts of franchise operating rights | January 1, December 31, 2023 Impairment 2023 (in millions) Franchise operating rights $ 585.1 $ (306.8) $ 278.3 Goodwill 225.1 — 225.1 $ 810.2 $ (306.8) $ 503.4 January 1, December 31, 2022 Impairment 2022 (in millions) Franchise operating rights $ 620.1 $ (35.0) $ 585.1 Goodwill 225.1 — 225.1 $ 845.2 $ (35.0) $ 810.2 |
Schedule of changes in the carrying amounts of goodwill | January 1, December 31, 2023 Impairment 2023 (in millions) Franchise operating rights $ 585.1 $ (306.8) $ 278.3 Goodwill 225.1 — 225.1 $ 810.2 $ (306.8) $ 503.4 January 1, December 31, 2022 Impairment 2022 (in millions) Franchise operating rights $ 620.1 $ (35.0) $ 585.1 Goodwill 225.1 — 225.1 $ 845.2 $ (35.0) $ 810.2 |
Schedule of total impairment charges recognized in each market | Year Ended December 31, 2023 2022 (in millions) Columbus, GA $ 48.1 $ — Huntsville, AL 88.0 28.5 Augusta, GA 50.4 — Montgomery, AL 40.0 — Charleston, SC 17.0 — Panama City, FL 30.5 6.5 Valley, AL 12.5 — Knoxville, TN 7.8 — Newnan, GA 12.0 — Dothan, AL 0.5 — Total $ 306.8 $ 35.0 |
Intangible Assets Subject to _2
Intangible Assets Subject to Amortization (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets Subject to Amortization | |
Schedule of intangible assets subject to amortization consist primarily of customer relationships and changes in the carrying amounts | January 1, December 31, 2023 Acquisitions Amortization 2023 (in millions) Other $ 1.3 $ — $ (0.3) $ 1.0 January 1, December 31, 2022 Acquisitions Amortization 2022 (in millions) Other $ 1.7 $ — $ (0.4) $ 1.3 |
Schedule of amortization expenses of the intangible assets | Amortization (in millions) 2024 $ 0.3 2025 0.2 2026 0.2 2027 0.1 2028 0.1 Thereafter 0.1 $ 1.0 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities and Other | |
Schedule of accrued liabilities and other | December 31, December 31, 2023 2022 (in millions) Payroll and employee benefits $ 15.5 $ 22.2 Programming costs 11.4 15.9 Patent litigation settlement 10.0 1.3 Other accrued liabilities 6.8 3.6 Restructuring related to employee severance 5.4 4.1 Franchise and revenue sharing fees 4.9 5.6 Utility pole costs 2.4 1.6 Professional fees 2.1 5.0 Property, income, sales and use taxes 1.5 5.8 Customer cash collections (Transition Services Agreements) — 3.6 $ 60.0 $ 68.7 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Debt and Finance Leases | |
Summary of long-term debt and finance lease obligations | December 31, December 31, 2023 2022 Available borrowing Effective Outstanding Outstanding capacity interest rate(1) balance balance (in millions) Long-term debt: Term B Loans, net(2) $ — 8.35 % $ 711.3 $ 717.7 Revolving Credit Facility(3) 44.3 8.12 % 201.0 9.0 Total long-term debt $ 44.3 912.3 726.7 Other Financing 1.4 — Finance lease obligations 24.6 20.6 Total long-term debt, finance lease obligations and other 938.3 747.3 Debt issuance costs, net(4) (3.8) (4.6) Sub-total 934.5 742.7 Less current portion (18.8) (17.7) Long-term portion $ 915.7 $ 725.0 (1) Represents the effective interest rate in effect for all borrowings outstanding as of the year ended December 31, 2023 pursuant to each debt instrument including the applicable margin. (2) At December 31, 2023 and 2022 includes $4.1 million and $5.0 million of net unamortized discounts, respectively. (3) Available borrowing capacity at December 31, 2023 represents $250.0 million of total availability less borrowings of $201.0 million on the Revolving Credit Facility, and outstanding letters of credit of $4.7 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, 2023 and 2022 debt issuance costs include $3.0 million and $3.5 million related to Term B Loans and $0.8 million and $1.1 million related to the Revolving Credit Facility, respectively. |
Schedule of amortization of debt issuance costs and debt discount, | Amortization of debt issuance costs and debt discount, all of which are included in interest expense in the accompanying consolidated statements of operations, for the years ended December 31, 2023, 2022 and 2021 are as follows: December 31, 2023 2022 2021 (in millions) Amortization of deferred issuance costs $ 0.9 $ 0.9 $ 2.4 Amortization of debt discount 0.8 0.8 2.3 |
Schedule of principal maturities of our long-term debt, inclusive of debt discount | Principal maturities of our long-term debt, excluding finance lease obligations, as of December 31, 2023 are as follows: Long-term Debt (in millions) 2024 $ 7.3 2025 7.3 2026 208.3 2027 7.3 2028 686.2 $ 916.4 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities | |
Schedule of gains and losses on derivatives | Year ended December 31, 2021 (in millions) Interest rate swap contracts(1) Gain recorded in AOCI on derivatives, before tax $ 8.5 Tax impact (2.0) Gain recorded in AOCI on derivatives, net $ 6.5 (1) Gains (losses) on derivatives reclassified from AOCI into income are included in “ Interest expense ” in the consolidated statements of operations, the same income statement line item as the earnings effect of the hedged item. Losses recognized in the consolidated statements of operations for the year ended December 31, 2021 were $9.5 million. The Company did no t hold such instruments during the years ended December 31, 2023 and 2022. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity | |
Summary of repurchases of common stock | Year ended December 31, 2023 2022 2021 (shares) Share buybacks 3,751,803 1,183,151 — Income tax withholding(1) 872,461 395,606 494,458 4,624,264 1,578,757 494,458 (1) Generally, the Company withholds shares to cover the income tax withholding of the employee upon vesting. The total fair value of restricted shares vested was $8.4 million, $30.4 million, and $28.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation | |
Summary of the restricted stock awards activity | Year ended December 31, 2023 2022 2021 Weighted Average Weighted Average Weighted Average Shares Grant Price Shares Grant Price Shares Grant Price Outstanding, beginning of period 3,223,995 $ 11.29 4,325,124 $ 9.10 4,990,971 $ 5.71 Granted 2,112,770 8.15 867,064 17.26 1,422,358 17.17 Vested (2,537,286) 8.86 (1,705,531) 8.55 (1,704,596) 6.23 Forfeited (348,453) 12.56 (262,662) 12.66 (383,609) 7.71 Outstanding, end of period(1) 2,451,026 $ 10.89 3,223,995 $ 11.29 4,325,124 $ 9.10 (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, 2023, 2022 and 2021. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of income tax benefit (expense) | Year ended December 31, 2023 2022 2021 (in millions) Current tax (expense) benefit Federal $ (1.7) $ (16.1) $ — State (1.8) 4.2 (1.6) Total current tax (3.5) (11.9) (1.6) Deferred tax benefit (expense) Federal 72.8 23.7 22.2 State 26.8 8.5 (6.8) Total deferred tax 99.6 32.2 15.4 Income tax benefit $ 96.1 $ 20.3 $ 13.8 |
Schedule of reconciliation of income tax provision computed at statutory tax rates to effective tax rate | Year ended December 31, 2023 2022 2021 (in millions) Statutory federal income taxes $ 80.8 $ 4.8 $ 17.3 State income taxes 23.3 (0.3) 0.6 Tax status & tax rate change 0.3 (0.3) 0.1 Other true-ups (0.4) 0.5 0.3 Equity compensation 0.9 2.9 3.8 Other permanent differences (2.9) (2.6) (2.4) Research and development tax credits 2.9 3.4 2.5 Uncertain tax positions (1.7) 2.9 (0.1) Change in valuation allowance (7.1) 9.0 (8.3) Income tax benefit $ 96.1 $ 20.3 $ 13.8 |
Schedule of components of deferred tax assets and deferred tax liabilities | December 31, 2023 2022 (1) (in millions) Deferred tax assets Business interest limitation $ 13.6 $ 0.2 Net operating loss carryforwards 77.8 76.7 Capitalized research expenses 35.3 24.7 Bad debt allowance 3.1 2.2 Stock compensation 3.6 5.4 SUT accruals 5.5 0.4 Lease liability 5.7 4.2 Other 5.6 8.0 Total deferred tax assets 150.2 121.8 Less: valuation allowance (33.7) (26.6) Deferred tax asset $ 116.5 $ 95.2 Deferred tax liabilities Depreciation and amortization $ (155.0) $ (149.1) Franchise operating rights (66.2) (151.8) Deferred promotional costs (5.3) (4.7) Deferred contract costs (10.1) (9.4) Right-of-use asset (5.2) (3.8) Other (0.4) (1.7) Total deferred tax liabilities (242.2) (320.5) Net deferred tax liabilities $ (125.7) $ (225.3) (1) Certain reclassifications have been made to conform with current period presentation. There was no change in the prior year net deferred tax liability as presented. |
Summary of changes in valuation allowance for deferred tax assets | 2023 2022 2021 (in millions) Balance at beginning of period $ 26.6 $ 35.5 $ 30.8 Additions charged to income tax expense and other accounts 8.7 0.3 6.6 Deductions from reserves (1.6) (9.2) (1.9) Balance at end of period $ 33.7 $ 26.6 $ 35.5 |
Schedule of reconciliation of unrecognized tax benefits | Year ended December 31, 2023 2022 2021 (in millions) Unrecognized tax benefits—January 1st $ 12.2 $ 14.2 $ 13.7 Gross increases—tax positions in prior period — 0.1 — Gross decreases—tax positions in prior period — (0.4) (0.7) Gross increases—tax positions in current period 0.8 1.0 1.2 Settlements — (2.7) — Unrecognized tax benefits—December 31st $ 13.0 $ 12.2 $ 14.2 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per Common Share | |
Schedule of computation of income per share | Year ended December 31, 2023 2022 2021 (in millions, except share data) Loss from continuing operations $ (287.7) $ (2.5) $ (68.6) Income from discontinued operations $ — $ — $ 839.1 Net (loss) income $ (287.7) $ (2.5) $ 770.5 Basic weighted-average shares 81,595,766 83,930,984 82,720,934 Effect of dilutive securities: Restricted stock awards — — — Diluted weighted-average shares 81,595,766 83,930,984 82,720,934 Basic and diluted (loss) earnings per common share - continuing operations Basic $ (3.53) $ (0.03) $ (0.83) Diluted $ (3.53) $ (0.03) $ (0.83) Basic and diluted earnings per common share - Basic $ — $ — $ 10.14 Diluted $ — $ — $ 10.14 Basic and diluted (loss) earnings per common share Basic $ (3.53) $ (0.03) $ 9.31 Diluted $ (3.53) $ (0.03) $ 9.31 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefits | |
Schedule of assets and liabilities of the plan included in the accompanying combined consolidated balance sheets | December 31, 2023 2022 (in millions) Prepaid expenses and other (current assets) $ 2.3 $ 1.9 Accrued liabilities and other (current liabilities) $ 2.3 $ 1.9 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations | |
Schedule of discontinued operations - assets and liabilities, components of income, revenue by service offering and non-cash items and capital expenditure | The following table presents information regarding certain components of income from discontinued operations: Year ended December 31, 2021 (in millions) Revenue $ 308.3 Costs and expenses: Operating (excluding depreciation and amortization) 112.0 Selling, general and administrative 11.8 Depreciation and amortization 41.0 164.8 Income from operations 143.5 Other income (expense): Interest income (expense) 0.4 Gain on sale of assets, net 1,001.8 Other income, net 0.1 Income from discontinued operations before provision for income tax 1,145.8 Income tax expense (306.7) Income from discontinued operations $ 839.1 The following table presents revenue by service offering from discontinued operations: Year ended December 31, 2021 (in millions) Residential subscription HSD $ 150.1 Video 103.2 Telephony 11.5 Total residential subscription $ 264.8 Business subscription HSD $ 17.8 Video 2.7 Telephony 8.4 Total business subscription $ 28.9 Total subscription services revenue 293.7 Other business services revenue 1.6 Other revenue 13.0 Total revenue $ 308.3 The following table presents specified items of cash flow and significant non-cash items of discontinued operations: Year ended December 31, 2021 (in millions) Specified items of cash flow: Capital expenditures $ 45.4 Non-cash operating activities: Operating lease additions $ 0.7 Non-cash investing activities: Capital expenditure accounts payable and accruals $ — |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Markets (Details) | 12 Months Ended |
Dec. 31, 2023 item | |
Organization and Basis of Presentation | |
Number of markets | 16 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Provision for Doubtful Accounts (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Bad Debt | |
Period of delinquency after which Company disconnects services to customers | 100 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | Dec. 31, 2023 |
Office and technical equipment | Minimum | |
Plant, Property and Equipment, Net | |
Useful life | 3 years |
Office and technical equipment | Maximum | |
Plant, Property and Equipment, Net | |
Useful life | 10 years |
Computer equipment and software | |
Plant, Property and Equipment, Net | |
Useful life | 3 years |
Customer premise equipment | |
Plant, Property and Equipment, Net | |
Useful life | 5 years |
Vehicles | |
Plant, Property and Equipment, Net | |
Useful life | 5 years |
Telephony infrastructure | Minimum | |
Plant, Property and Equipment, Net | |
Useful life | 5 years |
Telephony infrastructure | Maximum | |
Plant, Property and Equipment, Net | |
Useful life | 7 years |
Head-end equipment | |
Plant, Property and Equipment, Net | |
Useful life | 7 years |
Distribution facilities | |
Plant, Property and Equipment, Net | |
Useful life | 10 years |
Buildings and leasehold improvements | Minimum | |
Plant, Property and Equipment, Net | |
Useful life | 5 years |
Buildings and leasehold improvements | Maximum | |
Plant, Property and Equipment, Net | |
Useful life | 20 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Intangible Assets and Goodwill (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
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 |
Number of reporting units | segment | 1 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Advertising Costs | |||
Advertising expense | $ 36.6 | $ 36.5 | $ 39.5 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Segments (Details) | 12 Months Ended |
Dec. 31, 2023 segment product | |
Segments | |
Number of products | product | 3 |
Number of reportable segments | segment | 1 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Services Length (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Business subscription | Subscription services | |
Revenue from Contracts with Customers | |
Average contract term of non-cancellable contracts | 30 months |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Government Assistance (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
ASU | ||||
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected | us-gaap:AccountingStandardsUpdate202110ProspectiveMember | |||
Government assistance, revenue | $ 2.3 | $ 3.4 | $ 3.3 | |
ASU 2021-10, Government Assistance (Topic 832) | ||||
ASU | ||||
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Revenue by Service Offering (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contracts with Customers | |||
Other revenue | $ 30.1 | $ 35 | $ 31.4 |
Total revenue | 686.7 | 704.9 | 725.7 |
Government assistance, revenue | 2.3 | 3.4 | 3.3 |
Subscription services | |||
Revenue from Contracts with Customers | |||
Revenue | 635.6 | 648.7 | 672 |
Other business services | |||
Revenue from Contracts with Customers | |||
Revenue | 21 | 21.2 | 22.3 |
Other business services - Wholesale and colocation lease revenue | |||
Revenue from Contracts with Customers | |||
Revenue | 19.4 | 19.1 | 19.4 |
Residential subscription | Subscription services | |||
Revenue from Contracts with Customers | |||
Revenue | 523.2 | 537.7 | 561.6 |
Residential subscription | HSD | |||
Revenue from Contracts with Customers | |||
Revenue | 355.2 | 339.9 | 329 |
Government assistance, revenue | $ 2.3 | $ 3.4 | $ 3.3 |
Government Assistance, Statement of Income or Comprehensive Income | Total revenue | Total revenue | Total revenue |
Residential subscription | Video | |||
Revenue from Contracts with Customers | |||
Revenue | $ 146.3 | $ 173.5 | $ 204.1 |
Residential subscription | Telephony | |||
Revenue from Contracts with Customers | |||
Revenue | 21.7 | 24.3 | 28.5 |
Business subscription | Subscription services | |||
Revenue from Contracts with Customers | |||
Revenue | 112.4 | 111 | 110.4 |
Business subscription | HSD | |||
Revenue from Contracts with Customers | |||
Revenue | 75.2 | 72.2 | 70.1 |
Business subscription | Video | |||
Revenue from Contracts with Customers | |||
Revenue | 11.3 | 11.7 | 11.4 |
Business subscription | Telephony | |||
Revenue from Contracts with Customers | |||
Revenue | $ 25.9 | $ 27.1 | $ 28.9 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Promotional Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capitalized contract costs | |||
Capitalized contract cost, Beginning of period | $ 39.5 | ||
Capitalized contract cost, End of period | 42.4 | $ 39.5 | |
Capitalized contract costs, Current and non-current portion | |||
Total capitalized contract cost | 42.4 | 39.5 | |
Promotional costs | |||
Capitalized contract costs | |||
Capitalized contract cost, Beginning of period | 18 | 9.5 | $ 3.4 |
Deferral | 9.8 | 13.3 | 8.2 |
Amortization | (7.4) | (4.8) | (2.1) |
Capitalized contract cost, End of period | 20.4 | 18 | 9.5 |
Capitalized contract costs, Current and non-current portion | |||
Capitalized contract cost, Current | 8 | 6.1 | |
Capitalized contract cost, Non-current | 12.4 | 11.9 | |
Total capitalized contract cost | $ 20.4 | $ 18 | $ 9.5 |
Promotional costs | Residential subscription | Minimum | |||
Contract assets | |||
Costs of contracts with customers, amortization period | 3 years | ||
Promotional costs | Residential subscription | Maximum | |||
Contract assets | |||
Costs of contracts with customers, amortization period | 4 years | ||
Promotional costs | Business subscription | Minimum | |||
Contract assets | |||
Costs of contracts with customers, amortization period | 5 years | ||
Promotional costs | Business subscription | Maximum | |||
Contract assets | |||
Costs of contracts with customers, amortization period | 6 years |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Costs of Obtaining Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capitalized contract costs | |||
Capitalized contract cost, Beginning of period | $ 39.5 | ||
Capitalized contract cost, End of period | 42.4 | $ 39.5 | |
Capitalized contract costs, Current and non-current portion | |||
Total capitalized contract cost | 42.4 | 39.5 | |
Costs of obtaining contracts with customers | |||
Capitalized contract costs | |||
Capitalized contract cost, Beginning of period | 39.5 | 37.3 | $ 31.8 |
Deferral | 19.2 | 16.6 | 15.5 |
Amortization | (16.3) | (14.4) | (10) |
Capitalized contract cost, End of period | 42.4 | 39.5 | 37.3 |
Capitalized contract costs, Current and non-current portion | |||
Capitalized contract cost, Current | 16.5 | 15.6 | |
Capitalized contract cost, Non-current | 25.9 | 23.9 | |
Total capitalized contract cost | $ 42.4 | $ 39.5 | $ 37.3 |
Costs of obtaining contracts with customers | Residential subscription | Minimum | |||
Contract assets | |||
Costs of contracts with customers, amortization period | 3 years | ||
Costs of obtaining contracts with customers | Residential subscription | Maximum | |||
Contract assets | |||
Costs of contracts with customers, amortization period | 4 years | ||
Costs of obtaining contracts with customers | Business subscription | Minimum | |||
Contract assets | |||
Costs of contracts with customers, amortization period | 5 years | ||
Costs of obtaining contracts with customers | Business subscription | Maximum | |||
Contract assets | |||
Costs of contracts with customers, amortization period | 6 years |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contract assets | |||
Contract liability, Beginning of period | $ 2.7 | $ 3.3 | $ 2.9 |
Deferral | 10.7 | 11.9 | 12.4 |
Revenue recognized | (10.9) | (12.5) | (12) |
Contract liability, End of period | 2.5 | 2.7 | 3.3 |
Current contract liabilities | 2.2 | 2.4 | |
Non-current contract liabilities | 0.3 | 0.3 | |
Total contract liabilities | $ 2.5 | $ 2.7 | $ 3.3 |
Residential subscription | |||
Contract assets | |||
Contract liability, term of contract | 5 months | ||
Business subscription | |||
Contract assets | |||
Contract liability, term of contract | 30 months |
Revenue from Contracts with C_9
Revenue from Contracts with Customers - Unsatisfied Performance Obligations Amount (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Business subscription services and other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 93.4 |
Business subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 88.1 |
Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 5.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | 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]: 2024-01-01 | Business subscription services and other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 52.5 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Business subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 49.4 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 3.1 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Business subscription services and other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 28.4 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Business subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 26.9 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 1.5 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Business subscription services and other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 9.3 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Business subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 8.7 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 0.6 |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Business subscription services and other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 3.2 |
Expected period to recognize revenue of remaining performance obligations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Business subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 3.1 |
Expected period to recognize revenue of remaining performance obligations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 0.1 |
Expected period to recognize revenue of remaining performance obligations |
Revenue from Contracts with _10
Revenue from Contracts with Customers - Provision for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contracts with Customers | |||
Period of delinquency after which Company disconnects services to customers | 100 days | ||
Accounts receivable - trade, net of allowance for doubtful accounts | |||
Accounts receivable - trade | $ 45.5 | $ 44.2 | $ 45.2 |
Allowance for doubtful accounts | |||
Balance at beginning of period | 4.3 | 4.3 | 6.7 |
Provision charged to expense | 12.7 | 6 | 8.3 |
Accounts written off, net of recoveries | (10.3) | (6) | (10.7) |
Balance at end of period | 6.7 | 4.3 | 4.3 |
Amount released from reserve related to COVID-19 | 0 | 1.6 | 0 |
Accounts receivable-trade, net of allowance for doubtful accounts | 38.8 | 39.9 | 40.9 |
Amount released from reserve related to COVID-19 | $ 0 | $ 1.6 | $ 0 |
Plant, Property and Equipment_3
Plant, Property and Equipment, Net - Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Plant, Property and Equipment, Net | |||
Total property, plant and equipment | $ 2,473.6 | $ 2,202.2 | |
Less accumulated depreciation | (1,643.2) | (1,476.4) | |
Plant, Property and Equipment, Net | 830.4 | 725.8 | |
Depreciation expense | 192.8 | 178.9 | $ 168.9 |
Losses (gains) on sale of operating assets, net | 0.4 | (1.1) | $ 0 |
Distribution facilities | |||
Plant, Property and Equipment, Net | |||
Total property, plant and equipment | 1,510.6 | 1,341.1 | |
Customer premise equipment | |||
Plant, Property and Equipment, Net | |||
Total property, plant and equipment | 274.9 | 272.3 | |
Head-end equipment | |||
Plant, Property and Equipment, Net | |||
Total property, plant and equipment | 296.5 | 256.7 | |
Computer equipment and software | |||
Plant, Property and Equipment, Net | |||
Total property, plant and equipment | 182 | 156.4 | |
Telephony infrastructure | |||
Plant, Property and Equipment, Net | |||
Total property, plant and equipment | 48 | 52.4 | |
Buildings and leasehold improvements | |||
Plant, Property and Equipment, Net | |||
Total property, plant and equipment | 33.4 | 33.4 | |
Vehicles | |||
Plant, Property and Equipment, Net | |||
Total property, plant and equipment | 28.1 | 22.9 | |
Office and technical equipment | |||
Plant, Property and Equipment, Net | |||
Total property, plant and equipment | 19.1 | 19.1 | |
Land | |||
Plant, Property and Equipment, Net | |||
Total property, plant and equipment | 4.4 | 4.4 | |
Construction in progress (including material inventory and other) | |||
Plant, Property and Equipment, Net | |||
Total property, plant and equipment | $ 76.6 | $ 43.5 |
Leases - Financing leases (Deta
Leases - Financing leases (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Leases | |
Financing lease assets | $ 31.2 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position | Property, plant and equipment, net |
Finance lease obligations, Current | $ 11 |
Finance Lease, Liability, Current, Statement of Financial Position | Long-term Debt and Capital Lease Obligations, Current |
Finance lease obligations, Noncurrent | $ 13.6 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position | Long-term Debt and Capital Lease Obligations. |
Leases - Lease cost components
Leases - Lease cost components (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) lease | Dec. 31, 2022 USD ($) | |
Finance lease cost | ||
Amortization of leased asset | $ 9.3 | $ 8.9 |
Interest on lease liabilities | 1.1 | 0.9 |
Operating lease cost | 7.5 | 6.2 |
Sublease Income | (0.9) | (0.8) |
Net lease cost | 17 | 15.2 |
Short-term lease and variable lease costs | $ 1.5 | $ 0.7 |
Number of sublease agreements | lease | 4 | |
Number of sublease agreements expiring in 2024 | lease | 3 | |
Number of sublease agreements expiring in 2029 | lease | 1 |
Leases - Aggregate lease maturi
Leases - Aggregate lease maturities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finance Leases | ||
First year | $ 12.2 | $ 11.1 |
Second year | 7.7 | 7.2 |
Third year | 4.5 | 2.7 |
Fourth year | 1.8 | 0.6 |
Fifth year | 0.6 | 0.1 |
Total lease payments, Finance leases | 26.8 | 21.7 |
Less: Interest | 2.2 | 1.1 |
Present value of lease liabilities | $ 24.6 | $ 20.6 |
Finance Lease, Liability, Statement of Financial Position | Long-term debt and finance lease obligations, net of debt issuance costs -less current portion, Current portion of long-term debt and finance lease obligations | Long-term debt and finance lease obligations, net of debt issuance costs -less current portion, Current portion of long-term debt and finance lease obligations |
Operating Leases | ||
First year | $ 5.5 | $ 5.7 |
Second year | 5.2 | 4.8 |
Third year | 4.2 | 3.4 |
Fourth year | 3.2 | 2.2 |
Fifth year | 2.9 | 1.2 |
Thereafter | 5.9 | 1.3 |
Total lease payments, Operating leases | 26.9 | 18.6 |
Less: Interest | 4.6 | 2.1 |
Present value of lease liabilities | $ 22.3 | $ 16.5 |
Operating Lease, Liability, Statement of Financial Position | Current portion of long-term lease liability-operating, Long-term lease liability-operating | Current portion of long-term lease liability-operating, Long-term lease liability-operating |
Total Finance and Operating Leases | ||
First year | $ 17.7 | $ 16.8 |
Second year | 12.9 | 12 |
Third year | 8.7 | 6.1 |
Fourth year | 5 | 2.8 |
Fifth year | 3.5 | 1.3 |
Thereafter | 5.9 | 1.3 |
Total lease payments | 53.7 | 40.3 |
Less: Interest | 6.8 | 3.2 |
Present value of lease liabilities | $ 46.9 | $ 37.1 |
Leases - Weighted average remai
Leases - Weighted average remaining lease term and discount (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases | ||
Weighted-average remaining lease term - Finance Leases | 2 years 8 months 12 days | 2 years 2 months 12 days |
Weighted-average remaining lease term - Operating Leases | 5 years 9 months 18 days | 4 years |
Weighted-average discount rate - Finance Leases | 6.06% | 4.59% |
Weighted-average discount rate - Operating Leases | 6.41% | 5.88% |
Leases - Other information (Det
Leases - Other information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 5.4 | $ 5.3 |
Operating cash flows from finance leases | 1.1 | 0.9 |
Financing cash flows from finance leases | 12.2 | 12.1 |
Right-of-use assets obtained in exchange for lease obligations: Finance leases | 16.3 | 10.3 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | $ 11 | $ 2.7 |
Franchising Operating Rights _3
Franchising Operating Rights and Goodwill - Roll forward (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Franchise Operating Rights | ||||||
Balance at beginning of period | $ 585.1 | $ 620.1 | ||||
Impairment charge | (306.8) | (35) | $ 0 | |||
Balance at end of period | $ 278.3 | 278.3 | 585.1 | 620.1 | ||
Goodwill | ||||||
Balance at beginning of period | 225.1 | 225.1 | ||||
Impairment charge | 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Balance at end of period | 225.1 | 225.1 | 225.1 | 225.1 | ||
Franchise operating rights and goodwill | ||||||
Balance at beginning of the period | 810.2 | 845.2 | ||||
Balance at end of the period | $ 503.4 | $ 503.4 | $ 810.2 | $ 845.2 |
Franchising Operating Rights _4
Franchising Operating Rights and Goodwill - Impairment (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Franchise operating rights | ||||||
Impairment of franchise operating rights | $ 306.8 | $ 35 | $ 0 | |||
Goodwill | ||||||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | 0 | 0 | $ 0 |
Accumulated impairment | $ 193.9 | $ 193.9 | 193.9 | |||
Measurement input, Revenue growth rate | Minimum | ||||||
Franchise Operating Rights & Goodwill | ||||||
Indefinite-lived franchise rights, measurement input | (0.690) | (0.690) | (0.690) | (0.690) | ||
Measurement input, Revenue growth rate | Maximum | ||||||
Franchise Operating Rights & Goodwill | ||||||
Indefinite-lived franchise rights, measurement input | 0.170 | 0.170 | 0.170 | 0.170 | ||
Measurement input, Customer attrition rate | Minimum | ||||||
Franchise Operating Rights & Goodwill | ||||||
Indefinite-lived franchise rights, measurement input | 0.170 | 0.170 | 0.170 | 0.170 | ||
Measurement input, Customer attrition rate | Maximum | ||||||
Franchise Operating Rights & Goodwill | ||||||
Indefinite-lived franchise rights, measurement input | 0.420 | 0.420 | 0.420 | 0.420 | ||
Measurement input, Discount rate | Maximum | ||||||
Franchise Operating Rights & Goodwill | ||||||
Indefinite-lived franchise rights, measurement input | 0.155 | 0.155 | 0.155 | 0.155 | ||
Columbus, GA | ||||||
Franchise operating rights | ||||||
Impairment of franchise operating rights | $ 48.1 | |||||
Huntsville, AL | ||||||
Franchise operating rights | ||||||
Impairment of franchise operating rights | 88 | 28.5 | ||||
Augusta, GA | ||||||
Franchise operating rights | ||||||
Impairment of franchise operating rights | 50.4 | |||||
Montgomery, AL | ||||||
Franchise operating rights | ||||||
Impairment of franchise operating rights | 40 | |||||
Charleston, SC | ||||||
Franchise operating rights | ||||||
Impairment of franchise operating rights | 17 | |||||
Panama City, FL | ||||||
Franchise operating rights | ||||||
Impairment of franchise operating rights | 30.5 | $ 6.5 | ||||
Valley, AL | ||||||
Franchise operating rights | ||||||
Impairment of franchise operating rights | 12.5 | |||||
Knoxville, TN | ||||||
Franchise operating rights | ||||||
Impairment of franchise operating rights | 7.8 | |||||
Newnan, GA | ||||||
Franchise operating rights | ||||||
Impairment of franchise operating rights | 12 | |||||
Dothan, GA | ||||||
Franchise operating rights | ||||||
Impairment of franchise operating rights | $ 0.5 |
Intangible Assets Subject to _3
Intangible Assets Subject to Amortization - Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets Subject to Amortization | |||
Balance at the beginning of the period | $ 1.3 | $ 1.7 | |
Amortization | (0.3) | (0.4) | $ (0.4) |
Balance at the end of the period | $ 1 | $ 1.3 | $ 1.7 |
Intangible Assets Subject to _4
Intangible Assets Subject to Amortization - Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets Subject to Amortization | |||
Amortization expense | $ 0.3 | $ 0.4 | $ 0.4 |
Amortization of the intangible assets | |||
2024 | 0.3 | ||
2025 | 0.2 | ||
2026 | 0.2 | ||
2027 | 0.1 | ||
2028 | 0.1 | ||
Thereafter | 0.1 | ||
Total | $ 1 | $ 1.3 | $ 1.7 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities and Other | ||
Payroll and employee benefits | $ 15.5 | $ 22.2 |
Programming costs | 11.4 | 15.9 |
Patent litigation settlement | 10 | 1.3 |
Other accrued liabilities | 6.8 | 3.6 |
Restructuring related to employee severance | 5.4 | 4.1 |
Franchise and revenue sharing fees | 4.9 | 5.6 |
Utility pole costs | 2.4 | 1.6 |
Professional fees | 2.1 | 5 |
Property, income, sales and use taxes | 1.5 | 5.8 |
Customer cash collections (Transition Services Agreements) | 3.6 | |
Accrued liabilities and other | $ 60 | $ 68.7 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Leases - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 20, 2021 |
Long-Term Debt and Capital Leases | |||
Available borrowing capacity | $ 44.3 | ||
Long-term debt | 912.3 | $ 726.7 | |
Other Financing | 1.4 | ||
Finance lease obligations | $ 24.6 | $ 20.6 | |
Finance Lease, Liability, Statement of Financial Position | Long-term portion, Less current portion | Long-term portion, Less current portion | |
Total long-term debt, finance lease obligations and other | $ 938.3 | $ 747.3 | |
Debt issuance costs, net | (3.8) | (4.6) | |
Sub-total | 934.5 | 742.7 | |
Less current portion | (18.8) | (17.7) | |
Long-term portion | $ 915.7 | 725 | |
Term B Loans | |||
Long-Term Debt and Capital Leases | |||
Effective interest rate (as a percent) | 8.35% | ||
Long-term debt | $ 711.3 | 717.7 | |
Debt issuance costs, net | (3) | (3.5) | |
Net discount | 4.1 | 5 | |
Revolving Credit Facility | |||
Long-Term Debt and Capital Leases | |||
Available borrowing capacity | $ 44.3 | ||
Effective interest rate (as a percent) | 8.12% | ||
Long-term debt | $ 201 | 9 | |
Debt issuance costs, net | (0.8) | $ (1.1) | |
Maximum borrowing capacity | 250 | $ 250 | |
Outstanding letters of credit | 4.7 | ||
Revolving Credit Facility | Line of credit | |||
Long-Term Debt and Capital Leases | |||
Amount outstanding | 201 | ||
Revolving Credit Facility | Letters of credit | |||
Long-Term Debt and Capital Leases | |||
Maximum borrowing capacity | $ 20 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Leases - Term B Loans and Revolving Credit Facility (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 20, 2021 | Jul. 17, 2017 | Dec. 31, 2021 | Dec. 31, 2023 | |
Long-Term Debt and Capital Leases | ||||
Loss on debt extinguishment | $ 3.2 | |||
Term B Loans | ||||
Long-Term Debt and Capital Leases | ||||
Debt issued | $ 730 | |||
Term B Loans | SOFR | ||||
Long-Term Debt and Capital Leases | ||||
Spread on variable rate (as a percent) | 3% | |||
Floor rate (as a percent) | 0.50% | |||
Term B Loans | Alternate base rate | ||||
Long-Term Debt and Capital Leases | ||||
Spread on variable rate (as a percent) | 2.25% | |||
Term B Loans | LIBOR | ||||
Long-Term Debt and Capital Leases | ||||
Spread on variable rate (as a percent) | 3.25% | |||
Revolving Credit Facility | ||||
Long-Term Debt and Capital Leases | ||||
Maximum borrowing capacity | $ 250 | $ 250 | ||
Revolving Credit Facility | SOFR | ||||
Long-Term Debt and Capital Leases | ||||
Spread on variable rate (as a percent) | 2.75% | |||
Commitment fee rate for unused commitments (as a percent) | 0.50% | |||
Revolving Credit Facility | Alternate base rate | ||||
Long-Term Debt and Capital Leases | ||||
Spread on variable rate (as a percent) | 2% | |||
Revolving Credit Facility | LIBOR | ||||
Long-Term Debt and Capital Leases | ||||
Spread on variable rate (as a percent) | 3% | |||
Revolving Credit Facility | Letters of credit | ||||
Long-Term Debt and Capital Leases | ||||
Maximum borrowing capacity | $ 20 |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Obligations - Amortization of Debt Issuance Costs and Debt Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amortization of debt issue costs and accretion of debt discount | |||
Amortization of deferred issuance costs | $ 0.9 | $ 0.9 | $ 2.4 |
Amortization of debt discount | 0.8 | $ 0.8 | $ 2.3 |
Maturities of long-term debt, excluding finance lease obligations | |||
2024 | 7.3 | ||
2025 | 7.3 | ||
2026 | 208.3 | ||
2027 | 7.3 | ||
2028 | 686.2 | ||
Total principal maturities of long-term debt | $ 916.4 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Notional amounts and fair value (Details) - USD ($) $ in Millions | Dec. 31, 2020 | May 09, 2018 |
Derivatives | ||
Derivative Liability, Current, Statement of Financial Position | Accrued liabilities and other | |
Interest rate swaps | Cash flow hedging | ||
Derivatives | ||
Notional amount | $ 1,323.5 | $ 1,361.2 |
Derivative current liabilities, fair value | $ 9.4 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Gains and losses on derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Gains and losses on derivatives | |||
Gain recorded in AOCI on derivatives, net | $ 6.5 | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income | Interest Expense. | Interest Expense. | Interest Expense. |
Cash flow hedging | Interest rate swaps | |||
Gains and losses on derivatives | |||
Gain recorded in AOCI on derivatives, before tax | $ 8.5 | ||
Tax impact | (2) | ||
Gain recorded in AOCI on derivatives, net | 6.5 | ||
Gain (loss) on derivatives | $ 0 | $ 0 | $ (9.5) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financial instruments and 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 |
Recurring | ||
Financial instruments and financial liabilities | ||
Long-Term Debt, Fair Value by Fair Value Hierarchy Level | us-gaap:FairValueInputsLevel2Member | us-gaap:FairValueInputsLevel2Member |
Long-term debt | $ 661.7 | $ 699.2 |
Equity - Share Repurchase Plan
Equity - Share Repurchase Plan (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 04, 2022 | |
Common Stock | |||||
Share buybacks (in shares) | 3,751,803 | 1,183,151 | |||
Income tax withholding (in shares) | 872,461 | 395,606 | 494,458 | ||
Share buybacks and income tax withholding (in shares) | 4,624,264 | 1,578,757 | 494,458 | ||
Restricted stock awards | |||||
Common Stock | |||||
Fair value of restricted shares vested (in dollars) | $ 8.4 | $ 30.4 | $ 28.9 | ||
Share Repurchase Program | |||||
Common Stock | |||||
Common stock repurchase authorized amount (in dollars) | $ 50 | ||||
Share buybacks (in shares) | 4,900,000 | ||||
Purchase of shares (in dollars) | $ 50.4 |
Stock-Based Compensation - 2017
Stock-Based Compensation - 2017 Plan (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Stock Based Compensation | |
Number of authorized shares | 15,924,128 |
Restricted stock awards | |
Stock Based Compensation | |
Vesting period | 4 years |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation | |||
Non-cash compensation expense | $ 16.8 | $ 25.8 | $ 15.3 |
Unrecognized non-cash compensation expense | $ 20 | ||
Weighted-average period | 2 years 3 months 18 days | ||
Modified awards classified as liabilities | |||
Stock-Based Compensation | |||
Non-cash compensation expense | $ 0 | $ 0.5 | |
Amount of liability settled with shares of stock | $ 0.3 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted stock awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Awards | |||
Outstanding, beginning of period (in shares) | 3,223,995 | 4,325,124 | 4,990,971 |
Granted (in shares) | 2,112,770 | 867,064 | 1,422,358 |
Vested (in shares) | (2,537,286) | (1,705,531) | (1,704,596) |
Forfeited (in shares) | (348,453) | (262,662) | (383,609) |
Outstanding, end of period (in shares) | 2,451,026 | 3,223,995 | 4,325,124 |
Weighted Average Grant Price | |||
Outstanding, beginning of period (in dollars per share) | $ 11.29 | $ 9.10 | $ 5.71 |
Granted (in dollars per share) | 8.15 | 17.26 | 17.17 |
Vested ( in dollars per share ) | 8.86 | 8.55 | 6.23 |
Forfeited ( in dollars per share ) | 12.56 | 12.66 | 7.71 |
Outstanding, end of period (in dollars per share) | $ 10.89 | $ 11.29 | $ 9.10 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Mar. 03, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair value assumptions | |||||
Compensation expense (reversal) | $ 16.8 | $ 25.8 | $ 15.3 | ||
Performance shares | |||||
Fair value assumptions | |||||
Compensation expense (reversal) | $ (0.6) | ||||
Performance shares | Award Date, 2023 | |||||
Stock Based Compensation | |||||
Granted (in shares) | 264,028 | ||||
Performance shares | Share-based Payment Arrangement, Tranche One, TSR | Award Date, 2023 | |||||
Stock Based Compensation | |||||
Vesting (as a percent) | 50% | ||||
Grant date fair value (in dollars per share) | $ 16.19 | ||||
Fair value assumptions | |||||
Risk-free interest rate (as a percent) | 4.62% | ||||
Expected volatility (as a percent) | 51.61% | ||||
Expected life | 3 years | ||||
Performance shares | Share-based Payment Arrangement, Tranche One, TSR | Award Date, Prior to 2023 | |||||
Stock Based Compensation | |||||
Vesting (as a percent) | 50% | ||||
Vesting period | 3 years | ||||
Performance shares | Share-based Payment Arrangement, Tranche Two, EBITDA metric | Award Date, 2023 | |||||
Stock Based Compensation | |||||
Vesting (as a percent) | 50% | ||||
Vesting period | 3 years | ||||
Performance shares | Share-based Payment Arrangement, Tranche Two, EBITDA metric | Award Date, Prior to 2023 | |||||
Stock Based Compensation | |||||
Vesting (as a percent) | 50% | ||||
Vesting period | 3 years | 3 years | |||
Performance shares | Minimum | Award Date, 2023 | |||||
Stock Based Compensation | |||||
Percentage of target shares that may be earned upon achievement of threshold performance metric | 50% | ||||
Performance shares | Maximum | Award Date, 2023 | |||||
Stock Based Compensation | |||||
Percentage of target shares that may be earned upon achievement of threshold performance metric | 200% |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax (expense) benefit | |||
Federal | $ (1.7) | $ (16.1) | |
State | (1.8) | 4.2 | $ (1.6) |
Total current tax | (3.5) | (11.9) | (1.6) |
Deferred tax benefit (expense) | |||
Federal | 72.8 | 23.7 | 22.2 |
State | 26.8 | 8.5 | (6.8) |
Total deferred tax | 99.6 | 32.2 | 15.4 |
Income tax benefit | 96.1 | 20.3 | 13.8 |
Income tax benefit (expense) inclusive of discontinued operations | $ 96.1 | $ 20.3 | $ (292.9) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of the income tax provision computed at statutory tax rates to the income tax provision | |||
Statutory federal income taxes | $ 80.8 | $ 4.8 | $ 17.3 |
State income taxes | 23.3 | (0.3) | 0.6 |
Tax status & tax rate change | 0.3 | (0.3) | 0.1 |
Other true-ups | (0.4) | 0.5 | 0.3 |
Equity compensation | 0.9 | 2.9 | 3.8 |
Other permanent differences | (2.9) | (2.6) | (2.4) |
Research and development tax credits | 2.9 | 3.4 | 2.5 |
Uncertain tax positions | (1.7) | 2.9 | (0.1) |
Change in valuation allowance | (7.1) | 9 | (8.3) |
Income tax benefit | $ 96.1 | $ 20.3 | $ 13.8 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes, Net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2023 |
Deferred tax assets | ||
Business interest limitation | $ 0.2 | $ 13.6 |
Net operating loss carryforwards | 76.7 | 77.8 |
Capitalized research expenses | 24.7 | 35.3 |
Bad debt allowance | 2.2 | 3.1 |
Stock compensation | 5.4 | 3.6 |
SUT accruals | 0.4 | 5.5 |
Lease liability | 4.2 | 5.7 |
Other | 8 | 5.6 |
Total deferred tax assets | 121.8 | 150.2 |
Less: valuation allowance | (26.6) | (33.7) |
Deferred tax asset | 95.2 | 116.5 |
Deferred tax liabilities | ||
Depreciation and amortization | (149.1) | (155) |
Franchise operating rights | (151.8) | (66.2) |
Deferred promotional costs | (4.7) | (5.3) |
Deferred contract costs | (9.4) | (10.1) |
Right-of-use asset | (3.8) | (5.2) |
Other | (1.7) | (0.4) |
Total deferred tax liabilities | (320.5) | (242.2) |
Net deferred tax liabilities | (225.3) | $ (125.7) |
Net deferred tax liabilities | ||
Deferred tax liabilities | ||
Change due to reclassifications to conform with current period presentation | $ 0 |
Income Taxes - Valuation allowa
Income Taxes - Valuation allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Valuation Allowance | |||
Valuation allowance, Balance at beginning of period | $ 26.6 | ||
Valuation allowance, Balance at end of period | 33.7 | $ 26.6 | |
Deferred tax assets related primarily to state net operating loss carryforwards | |||
Valuation Allowance | |||
Valuation allowance, Balance at beginning of period | 26.6 | 35.5 | $ 30.8 |
Additions charged to income tax expense and other accounts | 8.7 | 0.3 | 6.6 |
Deductions from reserves | (1.6) | (9.2) | (1.9) |
Valuation allowance, Balance at end of period | $ 33.7 | $ 26.6 | $ 35.5 |
Income Taxes - NOLs (Details)
Income Taxes - NOLs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Income Taxes | |
Net operating losses subject to Section 382 and other restrictions | $ 197.7 |
Federal | |
Income Taxes | |
Net operating loss carryforwards | 197.7 |
State | |
Income Taxes | |
Net operating loss carryforwards | 796.3 |
Net operating loss carryforward, Indefinite lived | 279.9 |
Net operating loss carryforward subject to expiration | $ 516.4 |
Income Taxes - Uncertain tax po
Income Taxes - Uncertain tax positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
Unrecognized tax benefits at the beginning of year | $ 12.2 | $ 14.2 | $ 13.7 |
Gross increases - tax positions in prior period | 0.1 | ||
Gross decreases - tax positions in prior period | (0.4) | (0.7) | |
Gross increases - tax positions in current period | 0.8 | 1 | 1.2 |
Settlements | (2.7) | ||
Unrecognized tax benefits | 13 | 12.2 | 14.2 |
Unrecognized tax benefits, if recognized, would affect effective tax rate | 13 | ||
Accrued gross interest and penalties | $ 1.3 | $ 0.4 | $ 1.4 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per Common Share | |||
Loss from continuing operations, basic | $ (287.7) | $ (2.5) | $ (68.6) |
Loss from continuing operations, diluted | (287.7) | (2.5) | (68.6) |
Income from discontinued operations, basic | 839.1 | ||
Income from discontinued operations, diluted | 839.1 | ||
Net (loss) income, basic | (287.7) | (2.5) | 770.5 |
Net (loss) income, diluted | $ (287.7) | $ (2.5) | $ 770.5 |
Basic weighted-average shares | 81,595,766 | 83,930,984 | 82,720,934 |
Diluted weighted-average shares | 81,595,766 | 83,930,984 | 82,720,934 |
Basic and diluted (loss) earnings per common share - continuing operations | |||
Basic (in dollars per share) | $ (3.53) | $ (0.03) | $ (0.83) |
Diluted (in dollars per share) | (3.53) | (0.03) | (0.83) |
Basic and diluted earnings per common share - discontinued operations | |||
Basic (in dollars per share) | 10.14 | ||
Diluted (in dollars per share) | 10.14 | ||
Basic and diluted (loss) earnings per common share | |||
Basic (in dollars per share) | (3.53) | (0.03) | 9.31 |
Diluted (in dollars per share) | $ (3.53) | $ (0.03) | $ 9.31 |
Employee Benefits - 401(k) (Det
Employee Benefits - 401(k) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
401(k) Savings Plan | |||
Annual vesting percentage of Company matching contribution | 25% | ||
Vesting period | 4 years | ||
Expense related to the matching contributions to the 401(k) plan | $ 3.4 | $ 3.2 | $ 3.2 |
First 3% of employee contributions | |||
401(k) Savings Plan | |||
Employer contribution subject to first 4% of the participant's compensation (as a percent) | 100% | ||
Percentage of participant's gross pay for which the employer contributes a matching contribution (as a percent) | 3% | ||
Next 2% of employee contributions | |||
401(k) Savings Plan | |||
Employer contribution subject to first 4% of the participant's compensation (as a percent) | 50% | ||
Percentage of participant's gross pay for which the employer contributes a matching contribution (as a percent) | 2% | ||
Next 2% of employee contributions | Maximum | |||
401(k) Savings Plan | |||
Percentage of participant's gross pay for which the employer contributes a matching contribution (as a percent) | 4% |
Employee Benefits - Deferred Co
Employee Benefits - Deferred Compensation Plan (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets and liabilities of the plan included in the Consolidated Balance Sheets | ||
Prepaid expenses and other (current assets) | $ 2.3 | $ 1.9 |
Accrued liabilities and other (current liabilities) | $ 2.3 | $ 1.9 |
Commitments and Contingencies -
Commitments and Contingencies - PP&E Capital Leases and Rental Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and contingencies | |||
Rent expense for pole rental | $ 7.1 | $ 5.5 | $ 6.1 |
Franchise fees and other franchise related costs | $ 8.2 | $ 10 | $ 11.8 |
Minimum | |||
Commitments and contingencies | |||
Term of contract for licensing programming content | 3 years | ||
Maximum | |||
Commitments and contingencies | |||
Term of contract for licensing programming content | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies - Legal (Details) - Sprint Patent Infringement Claim - USD ($) $ in Millions | Apr. 28, 2023 | Mar. 31, 2023 |
Commitments and contingencies | ||
Settlement payment period | 3 years | |
Amount accrued as result of settlement | $ 46.8 |
Discontinued Operations - Compo
Discontinued Operations - Components of Income (Details) $ in Millions | 12 Months Ended | |
Jun. 30, 2021 agreement Counterparty | Dec. 31, 2021 USD ($) | |
Discontinued Operations | ||
Number of separate asset sales | agreement | 2 | |
Number of different buyers in asset sales | Counterparty | 2 | |
Other income (expense): | ||
Income from discontinued operations | $ 839.1 | |
Atlantic and Astound broadband markets | Discontinued Operations, Disposed of by sale | ||
Discontinued operations - Components of income | ||
Revenue | 308.3 | |
Costs and expenses | ||
Operating (excluding depreciation and amortization) | 112 | |
Selling, general and administrative | 11.8 | |
Depreciation and amortization | 41 | |
Total costs and expenses | 164.8 | |
Income from operations | 143.5 | |
Other income (expense): | ||
Interest income (expense) | 0.4 | |
Gain on sale of assets, net | 1,001.8 | |
Other income, net | 0.1 | |
Income from discontinued operations before provision for income tax | 1,145.8 | |
Income tax expense | (306.7) | |
Income from discontinued operations | $ 839.1 |
Discontinued Operations - Reven
Discontinued Operations - Revenue by Service Offering (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Discontinued Operations | |||
Other revenue | $ 30.1 | $ 35 | $ 31.4 |
Total revenue | 686.7 | 704.9 | 725.7 |
Subscription services | |||
Discontinued Operations | |||
Revenue | 635.6 | 648.7 | 672 |
Other business services | |||
Discontinued Operations | |||
Revenue | 21 | 21.2 | 22.3 |
Other business services - Wholesale and colocation lease revenue | |||
Discontinued Operations | |||
Revenue | 19.4 | 19.1 | 19.4 |
Residential subscription | Subscription services | |||
Discontinued Operations | |||
Revenue | 523.2 | 537.7 | 561.6 |
Residential subscription | HSD | |||
Discontinued Operations | |||
Revenue | 355.2 | 339.9 | 329 |
Residential subscription | Video | |||
Discontinued Operations | |||
Revenue | 146.3 | 173.5 | 204.1 |
Residential subscription | Telephony | |||
Discontinued Operations | |||
Revenue | 21.7 | 24.3 | 28.5 |
Business subscription | Subscription services | |||
Discontinued Operations | |||
Revenue | 112.4 | 111 | 110.4 |
Business subscription | HSD | |||
Discontinued Operations | |||
Revenue | 75.2 | 72.2 | 70.1 |
Business subscription | Video | |||
Discontinued Operations | |||
Revenue | 11.3 | 11.7 | 11.4 |
Business subscription | Telephony | |||
Discontinued Operations | |||
Revenue | $ 25.9 | $ 27.1 | 28.9 |
Atlantic and Astound broadband markets | Discontinued Operations, Disposed of by sale | |||
Discontinued Operations | |||
Other revenue | 13 | ||
Total revenue | 308.3 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Disposed of by sale | Subscription services | |||
Discontinued Operations | |||
Revenue | 293.7 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Disposed of by sale | Other business services | |||
Discontinued Operations | |||
Revenue | 1.6 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Disposed of by sale | Residential subscription | |||
Discontinued Operations | |||
Revenue | 264.8 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Disposed of by sale | Residential subscription | HSD | |||
Discontinued Operations | |||
Revenue | 150.1 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Disposed of by sale | Residential subscription | Video | |||
Discontinued Operations | |||
Revenue | 103.2 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Disposed of by sale | Residential subscription | Telephony | |||
Discontinued Operations | |||
Revenue | 11.5 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Disposed of by sale | Business subscription | |||
Discontinued Operations | |||
Revenue | 28.9 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Disposed of by sale | Business subscription | HSD | |||
Discontinued Operations | |||
Revenue | 17.8 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Disposed of by sale | Business subscription | Video | |||
Discontinued Operations | |||
Revenue | 2.7 | ||
Atlantic and Astound broadband markets | Discontinued Operations, Disposed of by sale | Business subscription | Telephony | |||
Discontinued Operations | |||
Revenue | $ 8.4 |
Discontinued Operations - Cash
Discontinued Operations - Cash Flow and Significant Non-Cash Items (Details) - Atlantic and Astound broadband markets - Discontinued Operations, Disposed of by sale $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Specified items of cash flow | |
Capital expenditures | $ 45.4 |
Non-cash operating activities | |
Operating lease additions | $ 0.7 |
Discontinued Operations - Trans
Discontinued Operations - Transition Services Agreement (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) item agreement | |
Discontinued Operations | |||
Other income, net | $ 2.3 | $ 16.6 | $ 9.5 |
Transition Services Agreement | |||
Discontinued Operations | |||
Number of separate agreements | agreement | 2 | ||
Agreement term | 12 months | ||
Number of optional term extensions | item | 2 | ||
Period of optional term extension | 3 months | ||
Amount of employee service, processes or systems expense allocated to discontinued operations | $ 0 | ||
Other income, net | $ 1 | $ 15.6 | $ 8.5 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (287.7) | $ (2.5) | $ 770.5 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 shares | |
Donald P. Schena | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Trading Arrangement Rule Non-Rule Total Shares Expiration Name and Title Action Date 10b5-1(1) 10b5-1(2) to be Sold Date Don Schena Adopted November 11, 2023 X 100,000 3/31/2025 Teresa Elder, Chief Executive Officer Adopted December 13, 2023 X 260,000 3/13/2025 On November 11, 2023, Donald Schena, the Company’s Chief Customer Experience Officer, entered into a prearranged stock selling plan for the sale of up to 100,000 shares of the Company’s common stock between March 1, 2024 and March 31, 2025. Mr. Schena’s trading plan was entered into during an open insider trading window and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act of 1934, as amended, and the Company's policies regarding insider transactions. |
Name | Donald Schena |
Title | Chief Customer Experience Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | November 11, 2023 |
Aggregate Available | 100,000 |
Teresa Elder | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Trading Arrangement Rule Non-Rule Total Shares Expiration Name and Title Action Date 10b5-1(1) 10b5-1(2) to be Sold Date Don Schena Adopted November 11, 2023 X 100,000 3/31/2025 Teresa Elder, Chief Executive Officer Adopted December 13, 2023 X 260,000 3/13/2025 On December 13, 2023, Teresa Elder, the Company’s Chief Executive Officer and a member of our Board of Directors, entered into a prearranged stock selling plan for the sale of up to 260,000 shares of the Company’s common stock between March 13, 2024 and March 13, 2025. Ms. Elder’s trading plan was entered into during an open insider trading window and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act of 1934, as amended, and the Company's policies regarding insider transactions. |
Name | Teresa Elder |
Title | Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | December 13, 2023 |
Aggregate Available | 260,000 |