Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SHENANDOAH TELECOMMUNICATIONS CO/VA/ | |
Entity Central Index Key | 354,963 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 49,558,663 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 75,207 | $ 78,585 |
Accounts receivable, net | 59,968 | 54,184 |
Income taxes receivable | 2,545 | 17,311 |
Inventory, net | 4,962 | 5,704 |
Prepaid expenses and other | 63,383 | 17,111 |
Total current assets | 206,065 | 172,895 |
Investments | 12,296 | 11,472 |
Property, plant and equipment, net | 669,709 | 686,327 |
Other assets: | ||
Intangible assets, net | 381,537 | 380,979 |
Goodwill | 146,497 | 146,497 |
Deferred charges and other assets, net | 53,723 | 13,690 |
Total assets | 1,469,827 | 1,411,860 |
Current Liabilities | ||
Current maturities of long-term debt, net of unamortized loan fees | 84,743 | 64,397 |
Accounts payable | 23,868 | 28,953 |
Advanced billings and customer deposits | 7,415 | 21,153 |
Accrued compensation | 6,833 | 9,167 |
Accrued liabilities and other | 14,756 | 13,914 |
Total current liabilities | 137,615 | 137,584 |
Long-term debt, less current maturities, net of unamortized loan fees | 694,045 | 757,561 |
Other Long-Term Liabilities | ||
Deferred income taxes | 120,846 | 100,879 |
Deferred lease | 22,162 | 15,782 |
Asset retirement obligations | 22,372 | 21,211 |
Retirement plan obligations | 13,235 | 13,328 |
Other liabilities | 14,567 | 15,293 |
Total other long-term liabilities | 193,182 | 166,493 |
Shareholders’ Equity | ||
Common stock, no par value, authorized 96,000; 49,559 and 49,328 issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 0 | 0 |
Additional paid in capital | 47,350 | 44,787 |
Retained earnings | 385,045 | 297,205 |
Accumulated other comprehensive income (loss), net of taxes | 12,590 | 8,230 |
Total shareholders’ equity | 444,985 | 350,222 |
Total liabilities and shareholders’ equity | $ 1,469,827 | $ 1,411,860 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 96,000,000 | 96,000,000 |
Common stock, shares issued (in shares) | 49,559,000 | 49,328,000 |
Common stock, shares outstanding (in shares) | 49,559,000 | 49,328,000 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating revenue: | ||||
Operating revenues | $ 158,731 | $ 151,782 | $ 469,370 | $ 458,920 |
Operating expenses: | ||||
Selling, general and administrative | 27,452 | 42,199 | 86,117 | 125,374 |
Acquisition, integration and migration expenses | 0 | 1,706 | 0 | 9,873 |
Depreciation and amortization | 40,028 | 42,568 | 124,632 | 132,297 |
Total operating expenses | 130,402 | 142,307 | 403,118 | 430,520 |
Operating income (loss) | 28,329 | 9,475 | 66,252 | 28,400 |
Other income (expense): | ||||
Interest expense | (9,001) | (9,823) | (27,184) | (28,312) |
Gain (loss) on investments, net | 88 | 202 | 112 | 395 |
Non-operating income (loss), net | 966 | 1,003 | 2,770 | 3,482 |
Income (loss) before income taxes | 20,382 | 857 | 41,950 | 3,965 |
Income tax expense (benefit) | 4,848 | (2,677) | 10,207 | (1,830) |
Net income (loss) | 15,534 | 3,534 | 31,743 | 5,795 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on interest rate hedge, net of tax | 465 | 6 | 4,360 | (770) |
Comprehensive income (loss) | $ 15,999 | $ 3,540 | $ 36,103 | $ 5,025 |
Net income (loss) per share, basic and diluted: | ||||
Basic net income (loss) per share (in dollars per share) | $ 0.31 | $ 0.07 | $ 0.64 | $ 0.12 |
Diluted net income (loss) per share (in dollars per share) | $ 0.31 | $ 0.07 | $ 0.63 | $ 0.12 |
Weighted average shares outstanding, basic (in shares) | 49,559 | 49,133 | 49,527 | 49,100 |
Weighted average shares outstanding, diluted (in shares) | 50,117 | 49,959 | 50,044 | 49,869 |
Service revenue and other | ||||
Operating revenue: | ||||
Operating revenues | $ 142,768 | $ 149,788 | $ 419,819 | $ 450,617 |
Equipment revenue | ||||
Operating revenue: | ||||
Operating revenues | 15,963 | 1,994 | 49,551 | 8,303 |
Cost of services | ||||
Operating expenses: | ||||
Cost of services | 47,886 | 48,552 | 146,362 | 145,744 |
Cost of goods sold | ||||
Operating expenses: | ||||
Cost of services | $ 15,036 | $ 7,282 | $ 46,007 | $ 17,232 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands | Total | Shares of Common Stock (no par value) | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2017 | 49,328,000 | 49,328 | |||
Beginning balance at Dec. 31, 2017 | $ 350,222 | $ 44,787 | $ 297,205 | $ 8,230 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 31,743 | 31,743 | |||
Other comprehensive gain (loss), net of tax of $1,441 | 4,360 | 4,360 | |||
Stock based compensation (in shares) | 206 | ||||
Stock based compensation | 4,578 | 4,578 | |||
Stock options exercised (in shares) | 15 | ||||
Stock options exercised | 104 | 104 | |||
Common stock issued | 18 | 18 | |||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (66) | ||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | (2,137) | (2,137) | |||
Common stock issued to acquire non-controlling interests of nTelos (in shares) | 76 | ||||
Common stock issued to acquire non-controlling interest in nTelos | $ 0 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 49,559,000 | 49,559 | |||
Ending balance at Sep. 30, 2018 | $ 444,985 | $ 47,350 | 385,045 | $ 12,590 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Change in accounting principle - adoption of accounting standard (Note 2) | $ 56,097 | $ 56,097 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Other comprehensive gain (loss), tax | $ 1,441 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 31,743 | $ 5,795 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 106,002 | 113,437 |
Amortization | 18,630 | 18,860 |
Amortization reflected as rent expense in cost of services | 372 | 2,173 |
Bad debt expense | 1,362 | 1,479 |
Stock based compensation expense, net of amount capitalized | 4,578 | 3,053 |
Waived management fee | 28,164 | 27,068 |
Deferred income taxes | (1,989) | (12,251) |
(Gain) loss on investments | (112) | (308) |
Net (gain) loss from patronage and equity investments | (2,300) | (2,315) |
Amortization of long-term debt issuance costs | 3,472 | 3,572 |
Accrued interest and other | 205 | 1,633 |
Changes in assets and liabilities: | ||
Accounts receivable | (5,492) | 6,418 |
Inventory, net | 741 | 31,604 |
Income taxes receivable | 14,932 | (8,704) |
Other assets | (13,393) | (162) |
Accounts payable | (1,913) | (30,795) |
Income taxes payable | 0 | (435) |
Deferred lease | 4,159 | 3,729 |
Other deferrals and accruals | (361) | (5,146) |
Net cash provided by (used in) operating activities | 188,800 | 158,705 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (92,309) | (109,435) |
Proceeds from sale of assets | 540 | 356 |
Cash distributions (contributions) from investments and other | (1) | 4 |
Sprint expansion | (52,000) | (6,000) |
Net cash provided by (used in) investing activities | (143,770) | (115,075) |
Cash Flows From Financing Activities | ||
Principal payments on long-term debt | (46,375) | (24,250) |
Proceeds from revolving credit facility borrowings | 15,000 | 0 |
Proceeds from credit facility borrowings | 0 | 25,000 |
Principal payments on revolving credit facility | (15,000) | 0 |
Taxes paid for equity award issuances | (2,033) | (5,106) |
Net cash provided by (used in) financing activities | (48,408) | (4,356) |
Net increase (decrease) in cash and cash equivalents | (3,378) | 39,274 |
Cash and cash equivalents, beginning of period | 78,585 | 36,193 |
Cash and cash equivalents, end of period | 75,207 | 75,467 |
Cash payments for: | ||
Interest, net of capitalized interest of $1,187 and $1,266, respectively | 25,067 | 25,934 |
Income tax (refunds received) payments, net | (2,736) | 19,567 |
Capital expenditures payable | $ 11,919 | $ 3,800 |
UNAUDITED CONDENSED CONSOLIDA_7
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Other cash flow information: | ||
Capitalized interest | $ 1,187 | $ 1,266 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The interim condensed consolidated financial statements of Shenandoah Telecommunications Company and Subsidiaries (collectively, the “Company”) are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the interim results have been reflected therein in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial reporting and as required by Rule 10-01 of Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements may not include all of the information and notes required by GAAP for audited financial statements. The information contained herein should be read in conjunction with the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 . Immaterial Prior Period Adjustment . During the three months ended September 30, 2018, the Company determined that the unaudited condensed consolidated financial statements for the three months ended March 31, 2018, and the three and six months ended June 30, 2018, contained an immaterial misstatement. Excess amortization of deferred contract costs that are recognized as a reduction of revenue, as described in Note 2, resulted in an understatement of revenue for the three months ended March 31, 2018, and the three and six months ended June 30, 2018. Additionally, amounts recorded upon the adoption of ASU No. 2014-09, Revenue from Contracts with Customers ("Topic 606", or "the new revenue recognition standard"), on January 1, 2018 were misstated. The Company evaluated the materiality of the prior period adjustment quantitatively and qualitatively, under the SEC’s authoritative guidance on materiality, and concluded that the prior period adjustment was not material to the financial statements of any of the impacted unaudited 2018 periods. The Company elected to correct the prior period adjustment by revising the prior period financial statements. The cumulative effect of the adjustment made to the consolidated January 1, 2018 balance sheet for the adoption of the new revenue recognition standard was as follows: As of January 1, 2018 (in thousands) As Reported Correction of Error As Adjusted Prepaid expenses and other $ 53,688 $ (6,701 ) $ 46,987 Deferred charges and other assets, net 29,797 14,964 44,761 Deferred income taxes 119,030 2,201 121,231 Retained earnings 347,240 6,062 353,302 The following table presents the effects of the immaterial prior period adjustment on the unaudited condensed consolidated balance sheet as of March 31, 2018 and June 30, 2018: As of March 31, 2018 (in thousands) As Reported Correction of Error As Adjusted Prepaid expenses and other $ 64,200 $ (5,741 ) $ 58,459 Deferred charges and other assets, net 33,934 16,410 50,344 Deferred income taxes 115,809 2,853 118,662 Retained earnings 352,069 7,816 359,885 As of June 30, 2018 (in thousands) As Reported Correction of Error As Adjusted Prepaid expenses and other $ 64,163 $ (4,756 ) $ 59,407 Deferred charges and other assets, net 34,021 17,896 51,917 Deferred income taxes 111,125 3,522 114,647 Retained earnings 359,893 9,618 369,511 The following tables present the effects of the immaterial prior period adjustment on the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2018 and the three and six months ended June 30, 2018: For the Three Months Ended March 31, 2018 (in thousands) As Reported Correction of Error As Adjusted Service revenue and other $ 134,153 $ 2,406 $ 136,559 Income tax expense (benefit) 1,176 652 1,828 Net income (loss) 4,829 1,754 6,583 Earnings per share - basic $ 0.10 $ 0.03 $ 0.13 Earnings per share - diluted $ 0.10 $ 0.03 $ 0.13 For the Three Months Ended June 30, 2018 (in thousands) As Reported Correction of Error As Adjusted Service revenue and other $ 138,021 $ 2,471 $ 140,492 Income tax expense (benefit) 2,862 669 3,531 Net income (loss) 7,824 1,802 9,626 Earnings per share - basic $ 0.16 $ 0.03 $ 0.19 Earnings per share - diluted $ 0.16 $ 0.03 $ 0.19 For the Six Months Ended June 30, 2018 (in thousands) As Reported Correction of Error As Adjusted Service revenue and other $ 272,174 $ 4,877 $ 277,051 Income tax expense (benefit) 4,038 1,321 5,359 Net income (loss) 12,653 3,556 16,209 Earnings per share - basic $ 0.26 $ 0.07 $ 0.33 Earnings per share - diluted $ 0.25 $ 0.07 $ 0.32 Adoption of New Accounting Principles There have been no developments related to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company's unaudited condensed consolidated financial statements and note disclosures, from those disclosed in the Company's 2017 Annual Report on Form 10-K, that would be expected to impact the Company except for the topics discussed below. The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (" Topic 606", or "the new revenue recognition standard" ), and all related amendments, effective January 1, 2018, using the modified retrospective method as discussed in Note 2 , Revenue from Contracts with Customers. The Company recognized the cumulative effect of applying the new revenue recognition standard as an adjustment to the opening balance of retained earnings. The comparative information has not been retrospectively modified and continues to be reported under the accounting standards in effect for those periods. In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases ( Topic 842 ), which requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than 12 months. The standard also requires disclosures by lessees and lessors about the amount, timing and uncertainty of cash flows arising from leases, as well as changes in the categorization of rental costs, from rent expense to interest and depreciation expense. Other effects may occur depending on the types of leases and the specific terms of them utilized by particular lessees. The ASU is effective for the Company on January 1, 2019, and early application is permitted. Modified retrospective application is required. The Company expects that the most notable impact to its financial statements upon the adoption of this ASU will be the recognition of a material right-of-use asset and a lease liability for its real estate and equipment leases. The Company is continuing to assess potential impacts that the standard may have on our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . Under existing U.S. GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU No. 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act. The amendments in this ASU also require certain disclosures about stranded tax effects. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption in any period is permitted. The Company is currently evaluating the impact of adopting ASU No. 2018-02. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company earns revenue primarily through the sale of our wireless telecommunications services, wireless equipment, and business, residential, and enterprise cable and wireline services that include video, internet, voice, and data services. Revenue earned for the three months ended September 30, 2018 was as follows: (in thousands) Wireless Cable Wireline Consolidated Wireless service $ 96,299 $ — $ — $ 96,299 Equipment 15,666 234 63 15,963 Business, residential and enterprise — 29,334 10,702 40,036 Tower and other 4,134 2,614 8,857 15,605 Total revenue 116,099 32,182 19,622 167,903 Internal revenue (1,263 ) (1,266 ) (6,643 ) (9,172 ) Total operating revenue $ 114,836 $ 30,916 $ 12,979 $ 158,731 Revenue earned for the nine months ended September 30, 2018 was as follows: (in thousands) Wireless Cable Wireline Consolidated Wireless service $ 284,154 $ — $ — $ 284,154 Equipment 48,859 537 155 49,551 Business, residential and enterprise — 87,931 31,906 119,837 Tower and other 10,643 7,536 26,380 44,559 Total revenue 343,656 96,004 58,441 498,101 Internal revenue (3,746 ) (3,394 ) (21,591 ) (28,731 ) Total operating revenue $ 339,910 $ 92,610 $ 36,850 $ 469,370 Wireless service The majority of the Company's revenue is earned through providing network access to Sprint under the affiliate agreement, which represents approximately 61% of consolidated revenues for the nine months ended September 30, 2018 . Wireless service revenue is variable based on billed revenue to Sprint’s subscribers in the Company's affiliate area, less applicable fees retained by Sprint. The Company's revenue related to Sprint’s postpaid customers is the amount that Sprint bills its postpaid subscribers, reduced by customer credits, write-offs of receivables, and 8% management and 8.6% service fees. The Company is also charged for the costs of subsidized handsets sold through Sprint’s national channels as well as commissions paid by Sprint to third-party resellers in the Company's service territory. The Company's revenue related to Sprint’s prepaid customers is the amount that Sprint bills its prepaid subscribers, reduced by costs to acquire and support the customers, based on national averages for Sprint’s prepaid programs, and a 6% management fee. The Company considers Sprint, rather than Sprint's subscribers, to be the customer under the new revenue recognition standard and the Company's performance obligation is to provide Sprint a series of continuous network access services. The reimbursement to Sprint for the costs of handsets sold through Sprint’s national channels, as well as commissions paid by Sprint to third-party resellers in our service territory represent consideration payable to a customer. These reimbursements are initially recorded as a contract asset and are subsequently recognized as a reduction of revenue over the expected benefit period between 21 and 53 months. Historically, under ASC 605 the customer was considered the subscriber rather than Sprint and as a result, reimbursement payments to Sprint for costs of handsets and commissions were recorded as operating expenses in the period incurred. During 2017 , these costs totaled $63.5 million recorded in cost of goods and services, and $16.9 million recorded in selling, general and administrative costs. On January 1, 2018, upon adoption, the Company recorded a wireless contract asset of approximately $51.1 million . During the three months ended September 30, 2018 , payments that increased the wireless contract asset balance totaled $16.4 million and amortization reflected as a reduction of revenue totaled approximately $11.9 million . During the nine months ended September 30, 2018 , payments that increased the wireless contract asset balance totaled $44.8 million and amortization reflected as a reduction of revenue totaled approximately $34.1 million . The wireless contract asset balance as of September 30, 2018 was approximately $61.8 million . Wireless equipment The Company owns and operates Sprint-branded retail stores within their geographic territory from which the Company sells equipment, primarily wireless handsets, and service to Sprint subscribers. The Company's equipment is predominantly sold to subscribers through Sprint's equipment financing plans. Under the equipment financing plans, Sprint purchases the equipment from the Company and resells the equipment to their subscribers. Historically, under ASC 605, the Company concluded that it was the agent in these equipment financing transactions and recorded revenues net of related handset costs which were approximately $63.8 million in 2017 . Under Topic 606 the Company concluded that it is the principal in these equipment financing transactions, as the Company controls and bears the risk of ownership of the inventory prior to sale, and accordingly, revenues and handset costs are recorded on a gross basis, the corresponding cost of the equipment is recorded separately to cost of goods sold. Business, residential and enterprise The Company earns revenue in the Cable and Wireline segments from business, residential, and enterprise customers where the performance obligations are to provide cable and telephone network services, sell and lease equipment and wiring services, and lease fiber-optic cable capacity. The Company's arrangements are generally composed of contracts that are cancellable at the customer’s discretion without penalty at any time. As there are multiple performance obligations in these arrangements, the Company recognizes revenue based on the standalone selling price of each distinct good or service. The Company generally recognizes these revenues over time as customers simultaneously receive and consume the benefits of the service, with the exception of equipment sales and home wiring which are recognized as revenue at a point in time when control transfers and when installation is complete, respectively. Under the new revenue recognition standard, the Company concluded that installation services do not represent a separate performance obligation. Accordingly, installation fees are allocated to services and are recognized ratably over the longer of the contract term or the period the unrecognized portion of the fee remains material to the contract, typically 10 and 11 months for cable and wireline customers, respectively. Historically, the Company deferred these fees over the estimated customer life of 42 months. Additionally, the Company incurs commission and installation costs related to in-house and third-party vendors that were previously expensed as incurred. Under Topic 606, the Company capitalizes and amortizes these commission and installation costs over the expected benefit period which is approximately 44 months, 72 months, and 46 months, for cable, wireline, and enterprise business, respectively. Tower / Other Tower revenues consist primarily of tower space leases accounted for under Topic 840, Leases , and Other revenues include network access-related charges for service provided to customers across the segments. The cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet for the adoption of the new revenue recognition standard were as follows: (in thousands) Balance at December 31, 2017 Adjustments due to Topic 606 Balance at January 1, 2018 Assets Prepaid expenses and other $ 17,111 $ 29,876 $ 46,987 Deferred charges and other assets, net 13,690 31,071 44,761 Liabilities Advanced billing and customer deposits 21,153 (14,302 ) 6,851 Deferred income taxes 100,879 20,352 121,231 Other long-term liabilities 15,293 (1,200 ) 14,093 Retained earnings 297,205 56,097 353,302 The impact of the adoption of the new revenue recognition standard on the condensed consolidated statements of operations and comprehensive income (loss) and condensed consolidated balance sheets was as follows: Three Months Ended September 30, 2018 (in thousands) As Reported Balances without Adoption of Topic 606 Effect of Change Higher/(Lower) Operating revenue: Service revenue and other $ 142,768 $ 161,076 $ (18,308 ) Equipment revenue 15,963 2,178 13,785 Operating expenses: Cost of services 47,886 48,001 (115 ) Cost of goods sold 15,036 7,870 7,166 Selling, general and administrative 27,452 44,164 (16,712 ) Nine Months Ended September 30, 2018 (in thousands) As Reported Balances without Adoption of Topic 606 Effect of Change Higher/(Lower) Operating revenue: Service revenue and other $ 419,819 $ 471,155 $ (51,336 ) Equipment revenue 49,551 6,036 43,515 Operating expenses: Cost of services 146,362 146,199 163 Cost of goods sold 46,007 20,316 25,691 Selling, general and administrative 86,117 132,711 (46,594 ) As of September 30, 2018 (in thousands) As Reported Balances without Adoption of Topic 606 Effect of Change Higher/(Lower) Assets Prepaid expenses and other $ 63,383 $ 27,765 $ 35,618 Deferred charges and other assets, net 53,723 17,496 36,227 Liabilities Advanced billing and customer deposits 7,415 23,744 (16,329 ) Deferred income taxes 120,846 97,029 23,817 Other long-term liabilities 14,567 15,759 (1,192 ) Retained earnings 385,045 319,496 65,549 Future performance obligations On September 30, 2018 , the Company had approximately $3.1 million of transaction price allocated to unsatisfied performance obligations, which is exclusive of contracts with original expected duration of one year or less. The Company expects to recognize approximately $0.2 million of this amount as revenue during the remainder of 2018, $0.6 million in 2019, an additional $0.6 million by 2020, and the balance thereafter. Contract acquisition costs and costs to fulfill contracts Capitalized contract costs represent contract fulfillment costs and contract acquisition costs which include commissions and installation costs in our Cable and Wireline segments. Capitalized contract costs are amortized on a straight line basis over the contract term plus expected renewals. The Company elected to apply the practical expedient to expense contract acquisition costs when incurred, if the amortization period would be twelve months or less. The amortization of these costs is included in cost of services, and selling, general and administrative expenses. Amounts capitalized were approximately $10.0 million as of September 30, 2018 of which $4.6 million is presented as prepaid expenses and other and $5.4 million is presented as deferred charges and other assets, net. Amortization recognized during the nine months ended September 30, 2018 was approximately $4.1 million . |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition Sprint Territory Expansion: Effective February 1, 2018, the Company signed an expansion agreement with Sprint to expand its wireless service coverage area to include certain areas in Kentucky, Pennsylvania, Virginia and West Virginia, (the “Expansion Area”). The agreement includes certain network build out requirements in the Expansion Area, and the ability to utilize Sprint’s spectrum in the Expansion Area. Pursuant to the expansion agreement, Sprint agreed to, among other things, transition the provision of network coverage in the Expansion Area from Sprint to the Company. The expansion agreement required a payment of $52.0 million for the right to service the Expansion Area pursuant to the Affiliate Agreements plus an additional payment of up to $5.0 million after acceptance of certain equipment at the Sprint cell sites in the Expansion Area. The transaction was accounted for as an asset acquisition. The Company recorded the following in the wireless segment: ($ in thousands) Estimated Useful Life (in years) February 1, 2018 Affiliate contract expansion 12 $ 45,148 Prepayment of tangible assets 0 6,497 Off-market leases - favorable 16.5 3,665 Off-market leases - unfavorable 4.2 (3,310 ) Total $ 52,000 Estimated useful lives are approximate and represent the average of the remaining useful lives as of the acquisition date. The Company allocated the purchase price to the components identified in the table above based on the relative fair value of each component. The fair value of the components was determined using an income and cost approach. The affiliate contract expansion asset is classified as "Intangible assets, net". The prepayment of tangible assets are classified as "Prepaid expenses and other" within current assets on the Company's balance sheet. The off-market leases - favorable and off-market leases - unfavorable, are classified as "Intangible assets, net" and "Deferred lease", respectively, on the Company's balance sheet. |
Customer Concentration
Customer Concentration | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Customer Concentration | Customer Concentration Significant Contractual Relationship: In 1999, the Company executed a Management Agreement (the “Agreement”) with Sprint whereby the Company committed to construct and operate a personal communications service (PCS) network using CDMA air interface technology. The Agreement has been amended numerous times. Under the amended Agreement, the Company is the exclusive PCS Affiliate of Sprint providing wireless mobility communications network products and services on the 800 MHz, 1900 MHz and 2.5 GHz spectrum ranges in its territory across a multi-state area covering large portions of central and western Virginia, south-central Pennsylvania, West Virginia, and portions of Maryland, North Carolina, Kentucky, and Ohio. The Company is authorized to use the Sprint brand in its territory, and operate its network under Sprint’s radio spectrum licenses. As an exclusive PCS Affiliate of Sprint, the Company has the exclusive right to build, own and maintain its portion of Sprint’s nationwide PCS network, in the aforementioned areas, to Sprint’s specifications. The initial term of the Agreement extends through November 2029 , with two successive 10 -year renewal periods, unless terminated by either party under provisions outlined in the Agreement. Upon non-renewal, the Company may cause Sprint to buy or Sprint may cause the Company to sell, the business at 90% of “Entire Business Value” (EBV) as defined in the Agreement. EBV is defined as i) the fair market value of a going concern paid by a willing buyer to a willing seller; ii) valued as if the business will continue to utilize existing brands and operate under existing agreements; and, iii) valued as if Manager (Shentel) owns the spectrum. Determination of EBV is made by an independent appraisal process. Amendment to the Affiliate agreement related to the acquisition of the Expansion Area : Effective with the acquisition of the Expansion Area on February 1, 2018, the Company amended its Agreement with Sprint to expand its wireless service area to include certain areas in Kentucky, Pennsylvania, Virginia and West Virginia. The agreement includes certain network build out requirements in the Expansion Area, and the ability to utilize Sprint’s spectrum in the Expansion Area along with certain other amendments to the Affiliate Agreements. Pursuant to the Expansion Agreement, Sprint agreed to, among other things, transition the provision of network coverage in the Expansion Area from Sprint to the Company. |
Earnings (Loss) Per Share (EPS)
Earnings (Loss) Per Share (EPS) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share (EPS) | Earnings (Loss) Per Share (EPS) Basic EPS was computed by dividing net income or loss by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share was computed under the treasury stock method, assuming the conversion as of the beginning of the period, for all dilutive stock options. Diluted EPS was computed by dividing net income by the sum of the weighted average number of shares of common stock outstanding and potentially dilutive securities outstanding during the period under the treasury stock method. Potentially dilutive securities include stock options and restricted stock units and shares that the Company is contractually obligated to issue in the future. The following table indicates the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2018 2017 2018 2017 Calculation of net income (loss) per share: Net income (loss) $ 15,534 $ 3,534 $ 31,743 $ 5,795 Weighted average shares outstanding 49,559 49,133 49,527 49,100 Basic income (loss) per share $ 0.31 $ 0.07 $ 0.64 $ 0.12 Effect of stock options outstanding: Basic weighted average shares outstanding 49,559 49,133 49,527 49,100 Effect from dilutive shares and options outstanding 558 826 517 769 Diluted weighted average shares outstanding 50,117 49,959 50,044 49,869 Diluted income (loss) per share $ 0.31 $ 0.07 $ 0.63 $ 0.12 The computation of diluted EPS does not include certain unvested awards, on a weighted average basis, because their inclusion would have an anti-dilutive effect on EPS. The awards excluded because of their anti-dilutive effect were as follows: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Awards excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive 13 — 60 94 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Investments | Investments Other investments, comprised of equity securities which do not have readily determinable fair values, consist of the following: (in thousands) 9/30/2018 12/31/2017 Cost method: CoBank $ 7,441 $ 6,818 Other – equity in other telecommunications partners 784 811 8,225 7,629 Equity method: Other 575 564 575 564 Total other investments $ 8,800 $ 8,193 The CoBank investment is primarily related to patronage distributions of restricted equity and is a required investment related to the Credit Facility. Refer to Note 12, Long-Term Debt , for additional information. The Company's investments carried at fair value consisted of: (in thousands) 9/30/2018 12/31/2017 Cash and Equivalents $ 1,408 $ — Domestic equity funds 1,675 2,856 International equity funds 413 423 Total investments carried at fair value $ 3,496 $ 3,279 Investments carried at fair value were acquired under a rabbi trust arrangement related to the Company’s Supplemental Executive Retirement Plan (SERP). The Company purchases investments in the trust to mirror the investment elections of participants in the SERP. The Company recorded net gains of $0.1 million in both the three months ended September 30, 2018 and 2017 . The Company recorded net gains of $0.1 million and $0.3 million in the nine months ended September 30, 2018 and September 30, 2017 , respectively. Fair values for these investments are determined using net asset value per share and are not classified in the fair value hierarchy. Gains and losses on the investments in the trust are reflected as increases or decreases in the liability owed to the participants. The increases or decreases to the liability are recorded as pension expense included within "Non-operating income (loss), net" in the Company's consolidated statements of operations. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present the hierarchy for financial assets and liabilities measured at fair value on a recurring basis: (in thousands) September 30, 2018 Balance sheet location: Level 1 Level 2 Level 3 Total Prepaid expenses and other: Interest rate swaps $ — $ 5,447 $ — $ 5,447 Deferred charges and other assets, net: Interest rate swaps — 13,541 — 13,541 Total $ — $ 18,988 $ — $ 18,988 (in thousands) December 31, 2017 Balance sheet location: Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 150 $ — $ — $ 150 Prepaid expenses and other: Interest rate swaps — 2,411 — 2,411 Deferred charges and other assets, net: Interest rate swaps — 10,776 — 10,776 Total $ 150 $ 13,187 $ — $ 13,337 Level 1- Financial assets and liabilities whose values are based on unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 - Financial assets and liabilities whose values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Financial assets and liabilities whose values are based on unobservable inputs for the asset or liability. Financial instruments are defined as cash, or other financial instruments to a third party. The carrying amounts of cash and cash equivalents, accounts receivable, other current assets, investments carried at fair value, accounts payable and accrued liabilities approximate fair value due to their short-term nature. The Company's long-term debt and interest rate swaps approximate fair value because of their floating rate structure. Derivative financial instruments are recognized as assets or liabilities in the financial statements and measured at fair value on a recurring basis. See Note 10, Derivatives and Hedging , for additional information. The Company measures its interest rate swaps at fair value and recognizes such derivative instruments as either assets or liabilities on the Company’s consolidated balance sheet. Changes in the fair value of swaps are recognized in other comprehensive income, as the Company has designated these swaps as cash flow hedges for accounting purposes. The Company entered into these swaps to manage a portion of its exposure to interest rate movements by converting a portion of its variable rate long-term debt to fixed rate debt. The Company determines the fair value of its security holdings based on pricing from its vendors. The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs). The Company has certain non-marketable long-term investments for which it is not practicable to estimate fair value, refer to Note 6, Investments , for additional information. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following: (in thousands) Estimated Useful Lives September 30, 2018 December 31, 2017 Land $ 6,568 $ 6,418 Buildings and structures 10 - 40 years 207,647 195,540 Cable and wire 4 - 40 years 302,592 286,999 Equipment and software 2 - 17 years 763,089 730,228 Plant in service 1,279,896 1,219,185 Plant under construction 74,422 62,202 Total property, plant and equipment 1,354,318 1,281,387 Less accumulated amortization and depreciation 684,609 595,060 Property, plant and equipment, net $ 669,709 $ 686,327 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Goodwill - wireless $ 146,383 $ 146,383 Goodwill - cable 104 104 Goodwill - wireline 10 10 Goodwill $ 146,497 $ 146,497 Intangible assets consisted of the following: September 30, 2018 December 31, 2017 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Non-amortizing intangibles: Cable franchise rights $ 64,334 $ — $ 64,334 $ 64,334 $ — $ 64,334 Railroad crossing rights 141 — 141 141 — 141 Total non-amortizing intangibles 64,475 — 64,475 64,475 — 64,475 Finite-lived intangibles: Affiliate contract expansion - wireless 455,305 (152,603 ) 302,702 410,157 (105,964 ) 304,193 Favorable leases - wireless 15,816 (1,754 ) 14,062 13,103 (1,222 ) 11,881 Acquired subscribers - cable 25,265 (25,213 ) 52 25,265 (25,100 ) 165 Other intangibles 464 (218 ) 246 463 (198 ) 265 Total finite-lived intangibles 496,850 (179,788 ) 317,062 448,988 (132,484 ) 316,504 Total intangible assets $ 561,325 $ (179,788 ) $ 381,537 $ 513,463 $ (132,484 ) $ 380,979 Affiliate contract expansion is amortized over the expected benefit period and is further reduced by the amount of waived management fees received from Sprint which were $9.6 million and $28.2 million for the three and nine months ended September 30, 2018 , respectively. Since May 6, 2016, the date of the non-monetary exchange, waived management fees received from Sprint totaled $88.8 million . The gross carrying amount of certain intangibles was affected by the expansion of the Company's wireless service coverage area with Sprint. See Note 3, Acquisition for additional information. |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheet: (in thousands) September 30, December 31, Balance sheet location of derivative financial instruments: Prepaid expenses and other $ 5,447 $ 2,411 Deferred charges and other assets, net 13,541 10,776 Total derivatives designated as hedging instruments $ 18,988 $ 13,187 The table below summarizes changes in accumulated other comprehensive income (loss) by component: Nine Months Ended September 30, 2018 (in thousands) Gains (Losses) on Income Tax Accumulated Balance as of December 31, 2017 $ 13,187 $ (4,957 ) $ 8,230 Net change in unrealized gain (loss) 5,801 (1,441 ) 4,360 Net current period other comprehensive income (loss) 5,801 (1,441 ) 4,360 Balance as of September 30, 2018 $ 18,988 $ (6,398 ) $ 12,590 The outstanding notional amounts of the cash flow hedge were $395.1 million and $418.3 million as of September 30, 2018 and December 31, 2017 , respectively. See Note 7, Fair Value Measurements , for additional information. |
Other Assets and Accrued Liabil
Other Assets and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Assets and Accrued Liabilities | Other Assets and Accrued Liabilities Prepaid expenses and other, classified as current assets, included the following: (in thousands) September 30, 2018 December 31, 2017 Prepaid rent $ 10,058 $ 10,519 Prepaid maintenance expenses 3,546 3,062 Interest rate swaps 5,447 2,411 Deferred contract asset 35,617 — Other 8,715 1,119 Prepaid expenses and other $ 63,383 $ 17,111 Deferred contract and other costs include amounts reimbursed to Sprint for commissions and device costs, and commissions and installation costs in the Company’s Cable and Wireline segments. The deferred contract and other costs increased due to the adoption of Topic 606. Refer to Note 2, Revenue from Contracts with Customers , for additional information. Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) September 30, 2018 December 31, 2017 Interest rate swaps $ 13,541 $ 10,776 Deferred contract asset 36,260 — Other 3,922 2,914 Deferred charges and other assets, net $ 53,723 $ 13,690 Deferred contract and other costs include amounts reimbursed to Sprint for commissions and device costs, and commissions and installation costs in the Company’s Cable and Wireline segments. The deferred contract and other costs increased due to the adoption of Topic 606. Refer to Note 2, Revenue from Contracts with Customers , for additional information. Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) September 30, 2018 December 31, 2017 Sales and property taxes payable $ 3,513 $ 3,872 Severance accrual — 1,028 Asset retirement obligations 582 492 Accrued programming costs 2,927 2,805 Other current liabilities 7,734 5,717 Accrued liabilities and other $ 14,756 $ 13,914 Other liabilities, classified as long-term liabilities, included the following: (in thousands) September 30, 2018 December 31, 2017 Non-current portion of deferred revenues $ 12,659 $ 14,030 Other 1,908 1,263 Other liabilities $ 14,567 $ 15,293 The Company's asset retirement obligations are included in the balance sheet captions "Asset retirement obligations" and "Accrued liabilities and other". The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement and removal of leasehold improvements or equipment. The Company also records a corresponding asset, which is depreciated over the life of the leasehold improvement or equipment. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time and changes in the estimated future cash flows underlying the obligation. The terms associated with its operating leases, and applicable zoning ordinances of certain jurisdictions, define the Company’s obligations which are estimated and vary based on the size and types of the towers. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Total debt as of September 30, 2018 and December 31, 2017 consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Term loan A-1 $ 400,125 $ 436,500 Term loan A-2 390,000 400,000 790,125 836,500 Less: unamortized loan fees 11,337 14,542 Total debt, net of unamortized loan fees $ 778,788 $ 821,958 Current maturities of long-term debt, net of current unamortized loan fees $ 84,743 $ 64,397 Long-term debt, less current maturities, net of unamortized loan fees $ 694,045 $ 757,561 As of September 30, 2018 , the Company's indebtedness totaled approximately $778.8 million , net of unamortized loan fees of $11.3 million , with an annualized overall weighted average interest rate of approximately 4.11% . As of September 30, 2018 , the Term Loan A-1 bears interest at one-month LIBOR plus a margin of 2.25% , while the Term Loan A-2 bears interest at one-month LIBOR plus a margin of 2.50% . For September 2018 , one-month LIBOR was 2.08% . LIBOR resets monthly. The Term Loan A-1 required quarterly principal repayments of $6.1 million , which began on September 30, 2016 and continued through June 30, 2017, increased to $12.1 million quarterly from September 30, 2017 through June 30, 2020; then increases to $18.2 million quarterly from September 30, 2020 through March 31, 2021, with the remaining balance due June 30, 2021. The Term Loan A-2 requires quarterly principal repayments of $10.0 million which began on September 30, 2018 and continue through March 31, 2023 , with the remaining balance due June 30, 2023 . The 2016 credit agreement also requires the Company to enter into one or more hedge agreements to manage its exposure to interest rate movements. The Company elected to hedge the minimum required under the 2016 credit agreement, and entered into a pay-fixed, receive-variable swap on 50% of the aggregate expected principal balance of the term loans outstanding. The Company will receive one month LIBOR and pay a fixed rate of 1.16% , in addition to the 2.25% initial spread on Term Loan A-1 and the 2.50% initial spread on Term Loan A-2. The 2016 credit agreement contains affirmative and negative covenants customary to secured credit facilities, including covenants restricting the ability of the Company and its subsidiaries, subject to negotiated exceptions, to incur additional indebtedness and additional liens on their assets, engage in mergers or acquisitions or dispose of assets, pay dividends or make other distributions, voluntarily prepay other indebtedness, enter into transactions with affiliated persons, make investments, and change the nature of the Company’s and its subsidiaries’ businesses. Indebtedness outstanding under any of the facilities may be accelerated by an Event of Default, as defined in the 2016 credit agreement. The Facilities are secured by a pledge by the Company of its stock and membership interests in its subsidiaries, a guarantee by the Company’s subsidiaries other than Shenandoah Telephone Company, and a security interest in substantially all of the assets of the Company and the guarantors. The Company is subject to certain financial covenants to be measured on a trailing twelve month basis each calendar quarter unless otherwise specified. These covenants include: • a limitation on the Company’s total leverage ratio, defined as indebtedness divided by earnings before interest, taxes, depreciation and amortization, or EBITDA, of less than or equal to 3.75 to 1.00 from the closing date through December 30, 2018, then 3.25 to 1.00 through December 30, 2019, and 3.00 to 1.00 thereafter; • a minimum debt service coverage ratio, defined as EBITDA minus certain cash taxes divided by the sum of all scheduled principal payments on the Term Loans and scheduled principal payments on other indebtedness plus cash interest expense, greater than 2.00 to 1.00; and • maintain a minimum liquidity balance of greater than $25 million . The balance includes amounts available under the revolver facility plus unrestricted cash and cash equivalents on deposit in a deposit account for which a control agreement has been delivered to the administrative agent under the 2016 credit agreement. As shown below, as of September 30, 2018 , the Company was in compliance with the covenants in its credit agreements. Actual Covenant Requirement Total leverage ratio 2.61 3.75 or Lower Debt service coverage ratio 3.25 2.00 or Higher Minimum liquidity balance (in millions) $ 149.1 $25.0 or Higher Credit Facility Modification: On February 16, 2018, the Company, entered into a Second Amendment to Credit Agreement (the “Second Amendment”) with CoBank, ACB, as administrative agent of its Credit Agreement and the various financial institutions party thereto (the “Lenders”), which modifies the Credit Agreement by (i) reducing the interest rate paid by the Company by 50 basis points with respect to certain loans made by the Lenders to the Company under the Credit Agreement, and (ii) allowing the Company to make charitable contributions to the Shentel Foundation, a Virginia nonstock corporation, of up to $1.5 million in any fiscal year. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files U.S. federal income tax returns and various state and local income tax returns. The net operating losses acquired in the nTelos acquisition are open to examination from 2002 forward. Income tax filings prior to 2014, excluding the acquired net operating losses, are no longer subject to examination. The Company is not subject to any state or federal income tax audits as of September 30, 2018 . The effective tax rate has fluctuated in recent periods due to the minimal base of pre-tax earnings or losses and has been further impacted by share based compensation tax benefits which are recognized as incurred under the provisions of ASC 740, " Income Taxes ". On December 22, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted, substantially changing the U.S. tax system. The 2017 Tax Act includes a number of changes to existing U.S. tax laws that impact the Company, most notably a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent for tax years beginning after December 31, 2017. The 2017 Tax Act also provides immediate expensing for certain qualified assets acquired and placed into service after September 27, 2017 as well as prospective changes beginning in 2018, including acceleration of tax revenue recognition, additional limitations on deductibility of executive compensation and limitations on the deductibility of interest. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Act. The Company recognized the income tax effects of the 2017 Tax Act in its 2017 consolidated financial statements in accordance with SAB No. 118. As of September 30, 2018 , the Company is continuing to evaluate the provisional amounts recorded related to the 2017 Tax Act at December 31, 2017 , for related state and local municipality tax matters. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Three Months Ended September 30, 2018 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated External revenue Service revenue $ 96,299 $ 28,578 $ 5,443 $ — $ — $ 130,320 Equipment revenue 15,666 234 63 — — 15,963 Other 2,871 2,104 7,473 — — 12,448 Total external revenue 114,836 30,916 12,979 — — 158,731 Internal revenue 1,263 1,266 6,643 — (9,172 ) — Total operating revenue 116,099 32,182 19,622 — (9,172 ) 158,731 Operating expenses Cost of services 32,253 14,837 9,266 (12 ) (8,458 ) 47,886 Cost of goods sold 14,940 78 19 (1 ) — 15,036 Selling, general and administrative 11,191 5,331 1,780 9,864 (714 ) 27,452 Depreciation and amortization 30,363 6,102 3,435 128 — 40,028 Total operating expenses 88,747 26,348 14,500 9,979 (9,172 ) 130,402 Operating income (loss) $ 27,352 $ 5,834 $ 5,122 $ (9,979 ) $ — $ 28,329 Three Months Ended September 30, 2017 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated External revenue Service revenue $ 107,395 $ 26,934 $ 5,126 $ — $ — $ 139,455 Equipment revenue 1,742 219 33 — — 1,994 Other 2,129 1,937 6,267 — — 10,333 Total external revenue 111,266 29,090 11,426 — — 151,782 Internal revenue 1,239 999 8,425 — (10,663 ) — Total operating revenue 112,505 30,089 19,851 — (10,663 ) 151,782 Operating expenses Cost of services 33,825 14,858 9,796 — (9,927 ) 48,552 Cost of goods sold 7,216 55 11 — — 7,282 Selling, general and administrative 30,099 5,358 1,706 5,772 (736 ) 42,199 Acquisition, integration and migration expenses 1,691 — — 15 — 1,706 Depreciation and amortization 32,929 6,192 3,249 198 — 42,568 Total operating expenses 105,760 26,463 14,762 5,985 (10,663 ) 142,307 Operating income (loss) $ 6,745 $ 3,626 $ 5,089 $ (5,985 ) $ — $ 9,475 Nine Months Ended September 30, 2018 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated External revenue Service revenue $ 284,154 $ 85,797 $ 16,052 $ — $ — $ 386,003 Equipment revenue 48,859 537 155 — — 49,551 Other 6,897 6,276 20,643 — — 33,816 Total external revenue 339,910 92,610 36,850 — — 469,370 Internal revenue 3,746 3,394 21,591 — (28,731 ) — Total operating revenue 343,656 96,004 58,441 — (28,731 ) 469,370 Operating expenses Cost of services 99,491 45,118 28,441 — (26,688 ) 146,362 Cost of goods sold 45,749 197 61 — — 46,007 Selling, general and administrative 35,693 14,940 5,183 32,344 (2,043 ) 86,117 Depreciation and amortization 95,853 18,305 10,069 405 — 124,632 Total operating expenses 276,786 78,560 43,754 32,749 (28,731 ) 403,118 Operating income (loss) $ 66,870 $ 17,444 $ 14,687 $ (32,749 ) $ — $ 66,252 Nine Months Ended September 30, 2017 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated External revenue Service revenue $ 323,262 $ 80,229 $ 15,301 $ — $ — $ 418,792 Equipment revenue 7,666 547 90 — — 8,303 Other 7,467 5,736 18,622 — — 31,825 Total external revenue 338,395 86,512 34,013 — — 458,920 Internal revenue 3,707 2,153 24,568 — (30,428 ) — Total operating revenue 342,102 88,665 58,581 — (30,428 ) 458,920 Operating expenses Cost of services 100,745 44,956 28,357 — (28,314 ) 145,744 Cost of goods sold 17,084 96 52 — — 17,232 Selling, general and administrative 88,201 15,083 5,065 19,139 (2,114 ) 125,374 Acquisition, integration and migration expenses 9,607 — — 266 — 9,873 Depreciation and amortization 104,231 18,070 9,536 460 — 132,297 Total operating expenses 319,868 78,205 43,010 19,865 (30,428 ) 430,520 Operating income (loss) $ 22,234 $ 10,460 $ 15,571 $ (19,865 ) $ — $ 28,400 A reconciliation of the total of the reportable segments’ operating income (loss) to consolidated income (loss) before taxes is as follows: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Total consolidated operating income (loss) $ 28,329 $ 9,475 $ 66,252 $ 28,400 Interest expense (9,001 ) (9,823 ) (27,184 ) (28,312 ) Gain (loss) on investments, net 88 202 112 395 Non-operating income (loss), net 966 1,003 2,770 3,482 Income (loss) before income taxes $ 20,382 $ 857 $ 41,950 $ 3,965 As of January 1, 2018, the Company records stock compensation expense to the Other segment. Previously, stock compensation expense was allocated among all of the segments. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 30, 2018, the Company's Board of Directors approved a dividend of $0.27 per common share to be paid on November 30, 2018 to shareholders of record as of the close of business on November 12, 2018. Before dividend reinvestments, the total payout is expected to be approximately $13.4 million . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of New Accounting Principles Policy | Adoption of New Accounting Principles There have been no developments related to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company's unaudited condensed consolidated financial statements and note disclosures, from those disclosed in the Company's 2017 Annual Report on Form 10-K, that would be expected to impact the Company except for the topics discussed below. The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (" Topic 606", or "the new revenue recognition standard" ), and all related amendments, effective January 1, 2018, using the modified retrospective method as discussed in Note 2 , Revenue from Contracts with Customers. The Company recognized the cumulative effect of applying the new revenue recognition standard as an adjustment to the opening balance of retained earnings. The comparative information has not been retrospectively modified and continues to be reported under the accounting standards in effect for those periods. In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases ( Topic 842 ), which requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms greater than 12 months. The standard also requires disclosures by lessees and lessors about the amount, timing and uncertainty of cash flows arising from leases, as well as changes in the categorization of rental costs, from rent expense to interest and depreciation expense. Other effects may occur depending on the types of leases and the specific terms of them utilized by particular lessees. The ASU is effective for the Company on January 1, 2019, and early application is permitted. Modified retrospective application is required. The Company expects that the most notable impact to its financial statements upon the adoption of this ASU will be the recognition of a material right-of-use asset and a lease liability for its real estate and equipment leases. The Company is continuing to assess potential impacts that the standard may have on our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . Under existing U.S. GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU No. 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act. The amendments in this ASU also require certain disclosures about stranded tax effects. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption in any period is permitted. The Company is currently evaluating the impact of adopting ASU No. 2018-02. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Effects of Immaterial Error Correction | As of January 1, 2018 (in thousands) As Reported Correction of Error As Adjusted Prepaid expenses and other $ 53,688 $ (6,701 ) $ 46,987 Deferred charges and other assets, net 29,797 14,964 44,761 Deferred income taxes 119,030 2,201 121,231 Retained earnings 347,240 6,062 353,302 The following table presents the effects of the immaterial prior period adjustment on the unaudited condensed consolidated balance sheet as of March 31, 2018 and June 30, 2018: As of March 31, 2018 (in thousands) As Reported Correction of Error As Adjusted Prepaid expenses and other $ 64,200 $ (5,741 ) $ 58,459 Deferred charges and other assets, net 33,934 16,410 50,344 Deferred income taxes 115,809 2,853 118,662 Retained earnings 352,069 7,816 359,885 As of June 30, 2018 (in thousands) As Reported Correction of Error As Adjusted Prepaid expenses and other $ 64,163 $ (4,756 ) $ 59,407 Deferred charges and other assets, net 34,021 17,896 51,917 Deferred income taxes 111,125 3,522 114,647 Retained earnings 359,893 9,618 369,511 The following tables present the effects of the immaterial prior period adjustment on the unaudited condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2018 and the three and six months ended June 30, 2018: For the Three Months Ended March 31, 2018 (in thousands) As Reported Correction of Error As Adjusted Service revenue and other $ 134,153 $ 2,406 $ 136,559 Income tax expense (benefit) 1,176 652 1,828 Net income (loss) 4,829 1,754 6,583 Earnings per share - basic $ 0.10 $ 0.03 $ 0.13 Earnings per share - diluted $ 0.10 $ 0.03 $ 0.13 For the Three Months Ended June 30, 2018 (in thousands) As Reported Correction of Error As Adjusted Service revenue and other $ 138,021 $ 2,471 $ 140,492 Income tax expense (benefit) 2,862 669 3,531 Net income (loss) 7,824 1,802 9,626 Earnings per share - basic $ 0.16 $ 0.03 $ 0.19 Earnings per share - diluted $ 0.16 $ 0.03 $ 0.19 For the Six Months Ended June 30, 2018 (in thousands) As Reported Correction of Error As Adjusted Service revenue and other $ 272,174 $ 4,877 $ 277,051 Income tax expense (benefit) 4,038 1,321 5,359 Net income (loss) 12,653 3,556 16,209 Earnings per share - basic $ 0.26 $ 0.07 $ 0.33 Earnings per share - diluted $ 0.25 $ 0.07 $ 0.32 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company earns revenue primarily through the sale of our wireless telecommunications services, wireless equipment, and business, residential, and enterprise cable and wireline services that include video, internet, voice, and data services. Revenue earned for the three months ended September 30, 2018 was as follows: (in thousands) Wireless Cable Wireline Consolidated Wireless service $ 96,299 $ — $ — $ 96,299 Equipment 15,666 234 63 15,963 Business, residential and enterprise — 29,334 10,702 40,036 Tower and other 4,134 2,614 8,857 15,605 Total revenue 116,099 32,182 19,622 167,903 Internal revenue (1,263 ) (1,266 ) (6,643 ) (9,172 ) Total operating revenue $ 114,836 $ 30,916 $ 12,979 $ 158,731 Revenue earned for the nine months ended September 30, 2018 was as follows: (in thousands) Wireless Cable Wireline Consolidated Wireless service $ 284,154 $ — $ — $ 284,154 Equipment 48,859 537 155 49,551 Business, residential and enterprise — 87,931 31,906 119,837 Tower and other 10,643 7,536 26,380 44,559 Total revenue 343,656 96,004 58,441 498,101 Internal revenue (3,746 ) (3,394 ) (21,591 ) (28,731 ) Total operating revenue $ 339,910 $ 92,610 $ 36,850 $ 469,370 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet for the adoption of the new revenue recognition standard were as follows: (in thousands) Balance at December 31, 2017 Adjustments due to Topic 606 Balance at January 1, 2018 Assets Prepaid expenses and other $ 17,111 $ 29,876 $ 46,987 Deferred charges and other assets, net 13,690 31,071 44,761 Liabilities Advanced billing and customer deposits 21,153 (14,302 ) 6,851 Deferred income taxes 100,879 20,352 121,231 Other long-term liabilities 15,293 (1,200 ) 14,093 Retained earnings 297,205 56,097 353,302 The impact of the adoption of the new revenue recognition standard on the condensed consolidated statements of operations and comprehensive income (loss) and condensed consolidated balance sheets was as follows: Three Months Ended September 30, 2018 (in thousands) As Reported Balances without Adoption of Topic 606 Effect of Change Higher/(Lower) Operating revenue: Service revenue and other $ 142,768 $ 161,076 $ (18,308 ) Equipment revenue 15,963 2,178 13,785 Operating expenses: Cost of services 47,886 48,001 (115 ) Cost of goods sold 15,036 7,870 7,166 Selling, general and administrative 27,452 44,164 (16,712 ) Nine Months Ended September 30, 2018 (in thousands) As Reported Balances without Adoption of Topic 606 Effect of Change Higher/(Lower) Operating revenue: Service revenue and other $ 419,819 $ 471,155 $ (51,336 ) Equipment revenue 49,551 6,036 43,515 Operating expenses: Cost of services 146,362 146,199 163 Cost of goods sold 46,007 20,316 25,691 Selling, general and administrative 86,117 132,711 (46,594 ) As of September 30, 2018 (in thousands) As Reported Balances without Adoption of Topic 606 Effect of Change Higher/(Lower) Assets Prepaid expenses and other $ 63,383 $ 27,765 $ 35,618 Deferred charges and other assets, net 53,723 17,496 36,227 Liabilities Advanced billing and customer deposits 7,415 23,744 (16,329 ) Deferred income taxes 120,846 97,029 23,817 Other long-term liabilities 14,567 15,759 (1,192 ) Retained earnings 385,045 319,496 65,549 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The Company recorded the following in the wireless segment: ($ in thousands) Estimated Useful Life (in years) February 1, 2018 Affiliate contract expansion 12 $ 45,148 Prepayment of tangible assets 0 6,497 Off-market leases - favorable 16.5 3,665 Off-market leases - unfavorable 4.2 (3,310 ) Total $ 52,000 |
Earnings (Loss) Per Share (EP_2
Earnings (Loss) Per Share (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table indicates the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2018 2017 2018 2017 Calculation of net income (loss) per share: Net income (loss) $ 15,534 $ 3,534 $ 31,743 $ 5,795 Weighted average shares outstanding 49,559 49,133 49,527 49,100 Basic income (loss) per share $ 0.31 $ 0.07 $ 0.64 $ 0.12 Effect of stock options outstanding: Basic weighted average shares outstanding 49,559 49,133 49,527 49,100 Effect from dilutive shares and options outstanding 558 826 517 769 Diluted weighted average shares outstanding 50,117 49,959 50,044 49,869 Diluted income (loss) per share $ 0.31 $ 0.07 $ 0.63 $ 0.12 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The awards excluded because of their anti-dilutive effect were as follows: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Awards excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive 13 — 60 94 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Schedule of other investments which do not have readily determinable fair values | Other investments, comprised of equity securities which do not have readily determinable fair values, consist of the following: (in thousands) 9/30/2018 12/31/2017 Cost method: CoBank $ 7,441 $ 6,818 Other – equity in other telecommunications partners 784 811 8,225 7,629 Equity method: Other 575 564 575 564 Total other investments $ 8,800 $ 8,193 |
Schedule Of Investments Carried At Fair Value | The Company's investments carried at fair value consisted of: (in thousands) 9/30/2018 12/31/2017 Cash and Equivalents $ 1,408 $ — Domestic equity funds 1,675 2,856 International equity funds 413 423 Total investments carried at fair value $ 3,496 $ 3,279 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy, Assets and Liabilities Measured on Recurring Basis | The following tables present the hierarchy for financial assets and liabilities measured at fair value on a recurring basis: (in thousands) September 30, 2018 Balance sheet location: Level 1 Level 2 Level 3 Total Prepaid expenses and other: Interest rate swaps $ — $ 5,447 $ — $ 5,447 Deferred charges and other assets, net: Interest rate swaps — 13,541 — 13,541 Total $ — $ 18,988 $ — $ 18,988 (in thousands) December 31, 2017 Balance sheet location: Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 150 $ — $ — $ 150 Prepaid expenses and other: Interest rate swaps — 2,411 — 2,411 Deferred charges and other assets, net: Interest rate swaps — 10,776 — 10,776 Total $ 150 $ 13,187 $ — $ 13,337 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present the hierarchy for financial assets and liabilities measured at fair value on a recurring basis: (in thousands) September 30, 2018 Balance sheet location: Level 1 Level 2 Level 3 Total Prepaid expenses and other: Interest rate swaps $ — $ 5,447 $ — $ 5,447 Deferred charges and other assets, net: Interest rate swaps — 13,541 — 13,541 Total $ — $ 18,988 $ — $ 18,988 (in thousands) December 31, 2017 Balance sheet location: Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 150 $ — $ — $ 150 Prepaid expenses and other: Interest rate swaps — 2,411 — 2,411 Deferred charges and other assets, net: Interest rate swaps — 10,776 — 10,776 Total $ 150 $ 13,187 $ — $ 13,337 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following: (in thousands) Estimated Useful Lives September 30, 2018 December 31, 2017 Land $ 6,568 $ 6,418 Buildings and structures 10 - 40 years 207,647 195,540 Cable and wire 4 - 40 years 302,592 286,999 Equipment and software 2 - 17 years 763,089 730,228 Plant in service 1,279,896 1,219,185 Plant under construction 74,422 62,202 Total property, plant and equipment 1,354,318 1,281,387 Less accumulated amortization and depreciation 684,609 595,060 Property, plant and equipment, net $ 669,709 $ 686,327 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | Goodwill consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Goodwill - wireless $ 146,383 $ 146,383 Goodwill - cable 104 104 Goodwill - wireline 10 10 Goodwill $ 146,497 $ 146,497 |
Schedule of Intangible Assets | Intangible assets consisted of the following: September 30, 2018 December 31, 2017 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Non-amortizing intangibles: Cable franchise rights $ 64,334 $ — $ 64,334 $ 64,334 $ — $ 64,334 Railroad crossing rights 141 — 141 141 — 141 Total non-amortizing intangibles 64,475 — 64,475 64,475 — 64,475 Finite-lived intangibles: Affiliate contract expansion - wireless 455,305 (152,603 ) 302,702 410,157 (105,964 ) 304,193 Favorable leases - wireless 15,816 (1,754 ) 14,062 13,103 (1,222 ) 11,881 Acquired subscribers - cable 25,265 (25,213 ) 52 25,265 (25,100 ) 165 Other intangibles 464 (218 ) 246 463 (198 ) 265 Total finite-lived intangibles 496,850 (179,788 ) 317,062 448,988 (132,484 ) 316,504 Total intangible assets $ 561,325 $ (179,788 ) $ 381,537 $ 513,463 $ (132,484 ) $ 380,979 |
Derivative and Hedging (Tables)
Derivative and Hedging (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instrument as Well as its Classification on the Consolidated Balance Sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheet: (in thousands) September 30, December 31, Balance sheet location of derivative financial instruments: Prepaid expenses and other $ 5,447 $ 2,411 Deferred charges and other assets, net 13,541 10,776 Total derivatives designated as hedging instruments $ 18,988 $ 13,187 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below summarizes changes in accumulated other comprehensive income (loss) by component: Nine Months Ended September 30, 2018 (in thousands) Gains (Losses) on Income Tax Accumulated Balance as of December 31, 2017 $ 13,187 $ (4,957 ) $ 8,230 Net change in unrealized gain (loss) 5,801 (1,441 ) 4,360 Net current period other comprehensive income (loss) 5,801 (1,441 ) 4,360 Balance as of September 30, 2018 $ 18,988 $ (6,398 ) $ 12,590 |
Other Assets and Accrued Liab_2
Other Assets and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Assets | Prepaid expenses and other, classified as current assets, included the following: (in thousands) September 30, 2018 December 31, 2017 Prepaid rent $ 10,058 $ 10,519 Prepaid maintenance expenses 3,546 3,062 Interest rate swaps 5,447 2,411 Deferred contract asset 35,617 — Other 8,715 1,119 Prepaid expenses and other $ 63,383 $ 17,111 |
Schedule of Other Assets, Noncurrent | Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) September 30, 2018 December 31, 2017 Interest rate swaps $ 13,541 $ 10,776 Deferred contract asset 36,260 — Other 3,922 2,914 Deferred charges and other assets, net $ 53,723 $ 13,690 |
Summary of Accrued Liabilities and Other | Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) September 30, 2018 December 31, 2017 Sales and property taxes payable $ 3,513 $ 3,872 Severance accrual — 1,028 Asset retirement obligations 582 492 Accrued programming costs 2,927 2,805 Other current liabilities 7,734 5,717 Accrued liabilities and other $ 14,756 $ 13,914 |
Summary of Other Liabilities | Other liabilities, classified as long-term liabilities, included the following: (in thousands) September 30, 2018 December 31, 2017 Non-current portion of deferred revenues $ 12,659 $ 14,030 Other 1,908 1,263 Other liabilities $ 14,567 $ 15,293 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt | Total debt as of September 30, 2018 and December 31, 2017 consisted of the following: (in thousands) September 30, 2018 December 31, 2017 Term loan A-1 $ 400,125 $ 436,500 Term loan A-2 390,000 400,000 790,125 836,500 Less: unamortized loan fees 11,337 14,542 Total debt, net of unamortized loan fees $ 778,788 $ 821,958 Current maturities of long-term debt, net of current unamortized loan fees $ 84,743 $ 64,397 Long-term debt, less current maturities, net of unamortized loan fees $ 694,045 $ 757,561 |
Financial covenants in credit agreements | As shown below, as of September 30, 2018 , the Company was in compliance with the covenants in its credit agreements. Actual Covenant Requirement Total leverage ratio 2.61 3.75 or Lower Debt service coverage ratio 3.25 2.00 or Higher Minimum liquidity balance (in millions) $ 149.1 $25.0 or Higher |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Selected Financial Data for Segments | Three Months Ended September 30, 2018 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated External revenue Service revenue $ 96,299 $ 28,578 $ 5,443 $ — $ — $ 130,320 Equipment revenue 15,666 234 63 — — 15,963 Other 2,871 2,104 7,473 — — 12,448 Total external revenue 114,836 30,916 12,979 — — 158,731 Internal revenue 1,263 1,266 6,643 — (9,172 ) — Total operating revenue 116,099 32,182 19,622 — (9,172 ) 158,731 Operating expenses Cost of services 32,253 14,837 9,266 (12 ) (8,458 ) 47,886 Cost of goods sold 14,940 78 19 (1 ) — 15,036 Selling, general and administrative 11,191 5,331 1,780 9,864 (714 ) 27,452 Depreciation and amortization 30,363 6,102 3,435 128 — 40,028 Total operating expenses 88,747 26,348 14,500 9,979 (9,172 ) 130,402 Operating income (loss) $ 27,352 $ 5,834 $ 5,122 $ (9,979 ) $ — $ 28,329 Three Months Ended September 30, 2017 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated External revenue Service revenue $ 107,395 $ 26,934 $ 5,126 $ — $ — $ 139,455 Equipment revenue 1,742 219 33 — — 1,994 Other 2,129 1,937 6,267 — — 10,333 Total external revenue 111,266 29,090 11,426 — — 151,782 Internal revenue 1,239 999 8,425 — (10,663 ) — Total operating revenue 112,505 30,089 19,851 — (10,663 ) 151,782 Operating expenses Cost of services 33,825 14,858 9,796 — (9,927 ) 48,552 Cost of goods sold 7,216 55 11 — — 7,282 Selling, general and administrative 30,099 5,358 1,706 5,772 (736 ) 42,199 Acquisition, integration and migration expenses 1,691 — — 15 — 1,706 Depreciation and amortization 32,929 6,192 3,249 198 — 42,568 Total operating expenses 105,760 26,463 14,762 5,985 (10,663 ) 142,307 Operating income (loss) $ 6,745 $ 3,626 $ 5,089 $ (5,985 ) $ — $ 9,475 Nine Months Ended September 30, 2018 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated External revenue Service revenue $ 284,154 $ 85,797 $ 16,052 $ — $ — $ 386,003 Equipment revenue 48,859 537 155 — — 49,551 Other 6,897 6,276 20,643 — — 33,816 Total external revenue 339,910 92,610 36,850 — — 469,370 Internal revenue 3,746 3,394 21,591 — (28,731 ) — Total operating revenue 343,656 96,004 58,441 — (28,731 ) 469,370 Operating expenses Cost of services 99,491 45,118 28,441 — (26,688 ) 146,362 Cost of goods sold 45,749 197 61 — — 46,007 Selling, general and administrative 35,693 14,940 5,183 32,344 (2,043 ) 86,117 Depreciation and amortization 95,853 18,305 10,069 405 — 124,632 Total operating expenses 276,786 78,560 43,754 32,749 (28,731 ) 403,118 Operating income (loss) $ 66,870 $ 17,444 $ 14,687 $ (32,749 ) $ — $ 66,252 Nine Months Ended September 30, 2017 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated External revenue Service revenue $ 323,262 $ 80,229 $ 15,301 $ — $ — $ 418,792 Equipment revenue 7,666 547 90 — — 8,303 Other 7,467 5,736 18,622 — — 31,825 Total external revenue 338,395 86,512 34,013 — — 458,920 Internal revenue 3,707 2,153 24,568 — (30,428 ) — Total operating revenue 342,102 88,665 58,581 — (30,428 ) 458,920 Operating expenses Cost of services 100,745 44,956 28,357 — (28,314 ) 145,744 Cost of goods sold 17,084 96 52 — — 17,232 Selling, general and administrative 88,201 15,083 5,065 19,139 (2,114 ) 125,374 Acquisition, integration and migration expenses 9,607 — — 266 — 9,873 Depreciation and amortization 104,231 18,070 9,536 460 — 132,297 Total operating expenses 319,868 78,205 43,010 19,865 (30,428 ) 430,520 Operating income (loss) $ 22,234 $ 10,460 $ 15,571 $ (19,865 ) $ — $ 28,400 |
Reconciliation of Income (Loss) from Continuing Operations from Segments to Consolidated | A reconciliation of the total of the reportable segments’ operating income (loss) to consolidated income (loss) before taxes is as follows: Three Months Ended Nine Months Ended (in thousands) 2018 2017 2018 2017 Total consolidated operating income (loss) $ 28,329 $ 9,475 $ 66,252 $ 28,400 Interest expense (9,001 ) (9,823 ) (27,184 ) (28,312 ) Gain (loss) on investments, net 88 202 112 395 Non-operating income (loss), net 966 1,003 2,770 3,482 Income (loss) before income taxes $ 20,382 $ 857 $ 41,950 $ 3,965 |
Basis of Presentation - Immater
Basis of Presentation - Immaterial Prior Period Adjustment (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Prepaid expenses and other | $ 63,383 | $ 59,407 | $ 58,459 | $ 59,407 | $ 63,383 | $ 46,987 | $ 17,111 | ||
Deferred charges and other assets, net | 53,723 | 51,917 | 50,344 | 51,917 | 53,723 | 44,761 | 13,690 | ||
Deferred income taxes | 120,846 | 114,647 | 118,662 | 114,647 | 120,846 | 121,231 | 100,879 | ||
Retained earnings | 385,045 | 369,511 | 359,885 | 369,511 | 385,045 | 353,302 | $ 297,205 | ||
Service revenue and other | 158,731 | $ 151,782 | 469,370 | $ 458,920 | |||||
Income tax expense (benefit) | 4,848 | 3,531 | 1,828 | (2,677) | 5,359 | 10,207 | (1,830) | ||
Net income (loss) | $ 15,534 | $ 9,626 | $ 6,583 | $ 3,534 | $ 16,209 | $ 31,743 | $ 5,795 | ||
Earnings per share - basic (in usd per share) | $ 0.31 | $ 0.19 | $ 0.13 | $ 0.07 | $ 0.33 | $ 0.64 | $ 0.12 | ||
Earnings per share - diluted (in usd per share) | $ 0.31 | $ 0.19 | $ 0.13 | $ 0.07 | $ 0.32 | $ 0.63 | $ 0.12 | ||
As Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Prepaid expenses and other | $ 64,163 | $ 64,200 | $ 64,163 | 53,688 | |||||
Deferred charges and other assets, net | 34,021 | 33,934 | 34,021 | 29,797 | |||||
Deferred income taxes | 111,125 | 115,809 | 111,125 | 119,030 | |||||
Retained earnings | 359,893 | 352,069 | 359,893 | 347,240 | |||||
Income tax expense (benefit) | 2,862 | 1,176 | 4,038 | ||||||
Net income (loss) | $ 7,824 | $ 4,829 | $ 12,653 | ||||||
Earnings per share - basic (in usd per share) | $ 0.16 | $ 0.10 | $ 0.26 | ||||||
Earnings per share - diluted (in usd per share) | $ 0.16 | $ 0.10 | $ 0.25 | ||||||
Service revenue and other | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Service revenue and other | $ 142,768 | $ 140,492 | $ 136,559 | $ 149,788 | $ 277,051 | $ 419,819 | $ 450,617 | ||
Service revenue and other | As Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Service revenue and other | 138,021 | 134,153 | 272,174 | ||||||
Immaterial Error Correction | Correction of Error | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Prepaid expenses and other | (4,756) | (5,741) | (4,756) | (6,701) | |||||
Deferred charges and other assets, net | 17,896 | 16,410 | 17,896 | 14,964 | |||||
Deferred income taxes | 3,522 | 2,853 | 3,522 | 2,201 | |||||
Retained earnings | 9,618 | 7,816 | 9,618 | $ 6,062 | |||||
Income tax expense (benefit) | 669 | 652 | 1,321 | ||||||
Net income (loss) | $ 1,802 | $ 1,754 | $ 3,556 | ||||||
Earnings per share - basic (in usd per share) | $ 0.03 | $ 0.03 | $ 0.07 | ||||||
Earnings per share - diluted (in usd per share) | $ 0.03 | $ 0.03 | $ 0.07 | ||||||
Immaterial Error Correction | Service revenue and other | Correction of Error | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Service revenue and other | $ 2,471 | $ 2,406 | $ 4,877 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue by Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 158,731 | $ 151,782 | $ 469,370 | $ 458,920 |
Wireless | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 114,836 | 111,266 | 339,910 | 338,395 |
Cable | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 30,916 | 29,090 | 92,610 | 86,512 |
Wireline | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 12,979 | 11,426 | 36,850 | 34,013 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 167,903 | 498,101 | ||
Operating Segments | Wireless service | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 96,299 | 284,154 | ||
Operating Segments | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 15,963 | 49,551 | ||
Operating Segments | Business, residential and enterprise | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 40,036 | 119,837 | ||
Operating Segments | Tower and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 15,605 | 44,559 | ||
Operating Segments | Wireless | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 116,099 | 112,505 | 343,656 | 342,102 |
Operating Segments | Wireless | Wireless service | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 96,299 | 284,154 | ||
Operating Segments | Wireless | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 15,666 | 48,859 | ||
Operating Segments | Wireless | Business, residential and enterprise | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Operating Segments | Wireless | Tower and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 4,134 | 10,643 | ||
Operating Segments | Cable | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 32,182 | 30,089 | 96,004 | 88,665 |
Operating Segments | Cable | Wireless service | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Operating Segments | Cable | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 234 | 537 | ||
Operating Segments | Cable | Business, residential and enterprise | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 29,334 | 87,931 | ||
Operating Segments | Cable | Tower and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 2,614 | 7,536 | ||
Operating Segments | Wireline | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 19,622 | 19,851 | 58,441 | 58,581 |
Operating Segments | Wireline | Wireless service | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Operating Segments | Wireline | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 63 | 155 | ||
Operating Segments | Wireline | Business, residential and enterprise | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 10,702 | 31,906 | ||
Operating Segments | Wireline | Tower and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 8,857 | 26,380 | ||
Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | (9,172) | (10,663) | (28,731) | (30,428) |
Intersegment Eliminations | Wireless | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | (1,263) | (1,239) | (3,746) | (3,707) |
Intersegment Eliminations | Cable | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | (1,266) | (999) | (3,394) | (2,153) |
Intersegment Eliminations | Wireline | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ (6,643) | $ (8,425) | $ (21,591) | $ (24,568) |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Percentage of consolidated revenue | 61.00% | |||
Management fee, percentage | 8.00% | |||
Service fee retained by Sprint | 8.60% | |||
Management fee on prepaid wireless revenues and costs | 6.00% | |||
Wireless contract asset balance | $ 61.8 | $ 61.8 | $ 51.1 | |
Payments to increase wireless contract asset balance | 16.4 | 44.8 | ||
Amortization to reduce revenue | 11.9 | $ 34.1 | ||
Revenue recorded from equipment financing transactions | $ 63.8 | |||
Estimated customer life (in months) | 42 months | |||
Cost to fulfill contract | 10 | $ 10 | ||
Amortization of capitalized costs to fulfill contracts | 4.1 | $ 4.1 | ||
Cable | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Installation revenue, recognition period | 10 months | |||
Commissions and other costs, recognition period (in months) | 44 months | |||
Wireline | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Installation revenue, recognition period | 11 months | |||
Commissions and other costs, recognition period (in months) | 72 months | |||
Enterprise | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Commissions and other costs, recognition period (in months) | 46 months | |||
Prepaid expenses and other | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost to fulfill contract | 4.6 | $ 4.6 | ||
Deferred charges and other assets, net | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost to fulfill contract | $ 5.4 | $ 5.4 | ||
Cost of Goods and Services Sold | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reimbursement payments, cost of equipment and commissions | 63.5 | |||
Selling, General and Administrative Expenses | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reimbursement payments, cost of equipment and commissions | $ 16.9 | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reimbursement payment, cost of equipment and commissions, benefit period for recognition | 21 months | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reimbursement payment, cost of equipment and commissions, benefit period for recognition | 53 months |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Adjustments to Previously Reported Consolidated Financial Statements from the Adoption of Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Assets | |||||||||
Prepaid expenses and other | $ 63,383 | $ 59,407 | $ 58,459 | $ 59,407 | $ 63,383 | $ 46,987 | $ 17,111 | ||
Deferred charges and other assets, net | 53,723 | 51,917 | 50,344 | 51,917 | 53,723 | 44,761 | 13,690 | ||
Liabilities | |||||||||
Advanced billings and customer deposits | 7,415 | 7,415 | 6,851 | ||||||
Deferred income taxes | 120,846 | 114,647 | 118,662 | 114,647 | 120,846 | 121,231 | 100,879 | ||
Other long-term liabilities | 14,567 | 14,567 | 14,093 | 15,293 | |||||
Retained earnings | 385,045 | 369,511 | 359,885 | 369,511 | 385,045 | 353,302 | 297,205 | ||
Operating revenues | 158,731 | $ 151,782 | 469,370 | $ 458,920 | |||||
Selling, general and administrative | 27,452 | 42,199 | 86,117 | 125,374 | |||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||
Assets | |||||||||
Prepaid expenses and other | 27,765 | 27,765 | 17,111 | ||||||
Deferred charges and other assets, net | 17,496 | 17,496 | 13,690 | ||||||
Liabilities | |||||||||
Advanced billings and customer deposits | 23,744 | 23,744 | 21,153 | ||||||
Deferred income taxes | 97,029 | 97,029 | 100,879 | ||||||
Other long-term liabilities | 15,759 | 15,759 | 15,293 | ||||||
Retained earnings | 319,496 | 319,496 | $ 297,205 | ||||||
Selling, general and administrative | 44,164 | 132,711 | |||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||||
Assets | |||||||||
Prepaid expenses and other | 35,618 | 35,618 | 29,876 | ||||||
Deferred charges and other assets, net | 36,227 | 36,227 | 31,071 | ||||||
Liabilities | |||||||||
Advanced billings and customer deposits | (16,329) | (16,329) | (14,302) | ||||||
Deferred income taxes | 23,817 | 23,817 | 20,352 | ||||||
Other long-term liabilities | (1,192) | (1,192) | (1,200) | ||||||
Retained earnings | 65,549 | 65,549 | $ 56,097 | ||||||
Selling, general and administrative | (16,712) | (46,594) | |||||||
Service revenue and other | |||||||||
Liabilities | |||||||||
Operating revenues | 142,768 | $ 140,492 | $ 136,559 | 149,788 | $ 277,051 | 419,819 | 450,617 | ||
Service revenue and other | Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||
Liabilities | |||||||||
Operating revenues | 161,076 | 471,155 | |||||||
Service revenue and other | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||||
Liabilities | |||||||||
Operating revenues | (18,308) | (51,336) | |||||||
Equipment revenue | |||||||||
Liabilities | |||||||||
Operating revenues | 15,963 | 1,994 | 49,551 | 8,303 | |||||
Equipment revenue | Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||
Liabilities | |||||||||
Operating revenues | 2,178 | 6,036 | |||||||
Equipment revenue | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||||
Liabilities | |||||||||
Operating revenues | 13,785 | 43,515 | |||||||
Cost of services | |||||||||
Liabilities | |||||||||
Cost of services | 47,886 | 48,552 | 146,362 | 145,744 | |||||
Cost of services | Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||
Liabilities | |||||||||
Cost of services | 48,001 | 146,199 | |||||||
Cost of services | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||||
Liabilities | |||||||||
Cost of services | (115) | 163 | |||||||
Cost of goods sold | |||||||||
Liabilities | |||||||||
Cost of services | 15,036 | $ 7,282 | 46,007 | $ 17,232 | |||||
Cost of goods sold | Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||
Liabilities | |||||||||
Cost of services | 7,870 | 20,316 | |||||||
Cost of goods sold | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||||
Liabilities | |||||||||
Cost of services | $ 7,166 | $ 25,691 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Remaining Performance Obligations (Details) $ in Millions | Sep. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 0.2 |
Remaining performance obligations, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 0.6 |
Remaining performance obligations, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 3.1 |
Remaining performance obligations, period | 12 months |
Acquisition - Sprint Territory
Acquisition - Sprint Territory Expansion (Details) - USD ($) $ in Thousands | Feb. 01, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
One-time payment for expansion of service area | $ 52,000 | ||
Finite-lived intangible assets | 52,000 | $ 317,062 | $ 316,504 |
Maximum | |||
Business Acquisition [Line Items] | |||
One-time payment for expansion of service area, additional payment | $ 5,000 | ||
Affiliate contract expansion | |||
Business Acquisition [Line Items] | |||
Estimated useful life, finite lived intangible assets | 12 years | ||
Finite-lived intangible assets | $ 45,148 | 302,702 | 304,193 |
Prepayment of tangible assets | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 6,497 | ||
Off-market leases - favorable | |||
Business Acquisition [Line Items] | |||
Estimated useful life, finite lived intangible assets | 16 years 6 months | ||
Finite-lived intangible assets | $ 3,665 | $ 14,062 | $ 11,881 |
Off-market leases - unfavorable | |||
Business Acquisition [Line Items] | |||
Estimated useful life, finite lived intangible assets | 4 years 2 months 12 days | ||
Finite-lived intangible assets | $ 3,310 |
Customer Concentration (Details
Customer Concentration (Details) | 12 Months Ended |
Dec. 31, 1999renewalmegahertz | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Megahertz spectrum used | 1,900 |
Initial term of contract | 2029 years |
Number of contract renewals | renewal | 2 |
Length of renewals | 10 years |
Right or obligation to sell business, percentage of EBV | 90.00% |
Minimum | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Megahertz spectrum used | 800 |
Maximum | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Megahertz spectrum used | 2,500 |
Earnings (Loss) Per Share (EP_3
Earnings (Loss) Per Share (EPS) - Schedule of Diluted Earnings Per Shares Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Calculation of net income (loss) per share: | |||||||
Net income (loss) | $ 15,534 | $ 9,626 | $ 6,583 | $ 3,534 | $ 16,209 | $ 31,743 | $ 5,795 |
Basic weighted average shares outstanding (in shares) | 49,559 | 49,133 | 49,527 | 49,100 | |||
Basic income (loss) per share (in dollars per share) | $ 0.31 | $ 0.19 | $ 0.13 | $ 0.07 | $ 0.33 | $ 0.64 | $ 0.12 |
Effect of stock options outstanding: | |||||||
Basic weighted average shares outstanding (in shares) | 49,559 | 49,133 | 49,527 | 49,100 | |||
Effect from dilutive shares and options outstanding (in shares) | 558 | 826 | 517 | 769 | |||
Diluted weighted average shares (in shares) | 50,117 | 49,959 | 50,044 | 49,869 | |||
Diluted income (loss) per share (in dollars per share) | $ 0.31 | $ 0.19 | $ 0.13 | $ 0.07 | $ 0.32 | $ 0.63 | $ 0.12 |
Earnings (Loss) Per Share (EP_4
Earnings (Loss) Per Share (EPS) - Schedule of Antidilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Awards excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive (in shares) | 13 | 0 | 60 | 94 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Cost method: | $ 8,225 | $ 7,629 |
Equity method: | 575 | 564 |
Total other investments | 8,800 | 8,193 |
CoBank | ||
Investment [Line Items] | ||
Cost method: | 7,441 | 6,818 |
Other | ||
Investment [Line Items] | ||
Cost method: | 784 | 811 |
Equity method: | $ 575 | $ 564 |
Investments - Investments Carri
Investments - Investments Carried at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Investments carried at fair value | $ 3,496 | $ 3,279 |
Cash and Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments carried at fair value | 1,408 | 0 |
Domestic equity funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments carried at fair value | 1,675 | 2,856 |
International equity funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments carried at fair value | $ 413 | $ 423 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments [Abstract] | ||||
Realized gains, available for sale | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.3 |
Fair Value Measurements - Hiera
Fair Value Measurements - Hierarchy (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | $ 18,988 | $ 13,337 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 0 | 150 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 18,988 | 13,187 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 0 | 0 |
Interest rate swap | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate swaps | 13,541 | 10,776 |
Prepaid expenses and other | Interest rate swap | Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate swaps | 5,447 | 2,411 |
Prepaid expenses and other | Interest rate swap | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate swaps | 0 | 0 |
Prepaid expenses and other | Interest rate swap | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate swaps | 5,447 | 2,411 |
Prepaid expenses and other | Interest rate swap | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate swaps | 0 | 0 |
Deferred charges and other assets, net | Interest rate swap | Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate swaps | 13,541 | 10,776 |
Deferred charges and other assets, net | Interest rate swap | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate swaps | 0 | 0 |
Deferred charges and other assets, net | Interest rate swap | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate swaps | 13,541 | 10,776 |
Deferred charges and other assets, net | Interest rate swap | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate swaps | $ 0 | 0 |
Money market funds | Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 150 | |
Money market funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 150 | |
Money market funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 0 | |
Money market funds | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | $ 0 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 1,354,318 | $ 1,281,387 |
Less accumulated amortization and depreciation | 684,609 | 595,060 |
Property, plant and equipment, net | 669,709 | 686,327 |
Land | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | 6,568 | 6,418 |
Buildings and structures | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | 207,647 | 195,540 |
Cable and wire | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | 302,592 | 286,999 |
Equipment and software | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | 763,089 | 730,228 |
Plant in service | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | 1,279,896 | 1,219,185 |
Plant under construction | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 74,422 | $ 62,202 |
Minimum | Buildings and structures | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 10 years | |
Minimum | Cable and wire | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 4 years | |
Minimum | Equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 2 years | |
Maximum | Buildings and structures | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 40 years | |
Maximum | Cable and wire | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 40 years | |
Maximum | Equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 17 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||
Goodwill | $ 146,497 | $ 146,497 |
Wireless | ||
Goodwill [Line Items] | ||
Goodwill | 146,383 | 146,383 |
Cable | ||
Goodwill [Line Items] | ||
Goodwill | 104 | 104 |
Wireline | ||
Goodwill [Line Items] | ||
Goodwill | $ 10 | $ 10 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 29 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Feb. 01, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Total non-amortizing intangibles | $ 64,475 | $ 64,475 | $ 64,475 | $ 64,475 | |
Gross Carrying Amount | 496,850 | 496,850 | 496,850 | 448,988 | |
Accumulated Amortization and Other | (179,788) | (179,788) | (179,788) | (132,484) | |
Net | 317,062 | 317,062 | 317,062 | $ 52,000 | 316,504 |
Total intangible assets, gross | 561,325 | 561,325 | 561,325 | 513,463 | |
Total intangible assets, net | 381,537 | 381,537 | 381,537 | 380,979 | |
Waived management fees under affiliate agreement | 9,600 | 28,200 | 88,800 | ||
Affiliate contract expansion - wireless | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 455,305 | 455,305 | 455,305 | 410,157 | |
Accumulated Amortization and Other | (152,603) | (152,603) | (152,603) | (105,964) | |
Net | 302,702 | 302,702 | 302,702 | 45,148 | 304,193 |
Favorable leases - wireless | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 15,816 | 15,816 | 15,816 | 13,103 | |
Accumulated Amortization and Other | (1,754) | (1,754) | (1,754) | (1,222) | |
Net | 14,062 | 14,062 | 14,062 | $ 3,665 | 11,881 |
Acquired subscribers - cable | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 25,265 | 25,265 | 25,265 | 25,265 | |
Accumulated Amortization and Other | (25,213) | (25,213) | (25,213) | (25,100) | |
Net | 52 | 52 | 52 | 165 | |
Other intangibles | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 464 | 464 | 464 | 463 | |
Accumulated Amortization and Other | (218) | (218) | (218) | (198) | |
Net | 246 | 246 | 246 | 265 | |
Cable franchise rights | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Total non-amortizing intangibles | 64,334 | 64,334 | 64,334 | 64,334 | |
Railroad crossing rights | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Total non-amortizing intangibles | $ 141 | $ 141 | $ 141 | $ 141 |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Derivative Financial Instrument as Well as its Classification on the Consolidated Balance Sheet (Details) - Interest rate swap - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative assets | $ 13,541 | $ 10,776 |
Derivatives designated as hedging instruments | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Total derivatives designated as hedging instruments | 18,988 | 13,187 |
Derivatives designated as hedging instruments | Prepaid expenses and other | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative assets | 5,447 | 2,411 |
Derivatives designated as hedging instruments | Deferred charges and other assets, net | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | ||
Derivative assets | $ 13,541 | $ 10,776 |
Derivatives and Hedging - Sch_2
Derivatives and Hedging - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Gains (Losses) on Cash Flow Hedges | |
Balance as of December 31, 2017 | $ 13,187 |
Balance as of September 30, 2018 | 18,988 |
Income Tax Expense | |
Balance as of December 31, 2017 | (4,957) |
Net current period accumulated other comprehensive income (loss) | (1,441) |
Balance as of September 30, 2018 | (6,398) |
Accumulated Other Comprehensive Income (Loss), net of taxes | |
Balance as of December 31, 2017 | 8,230 |
Balance as of September 30, 2018 | 12,590 |
Gains (Losses) on Cash Flow Hedges | |
Gains (Losses) on Cash Flow Hedges | |
Net change in unrealized gain (loss) | 5,801 |
Net current period accumulated other comprehensive income (loss) | 5,801 |
Income Tax Expense | |
Net change in unrealized gain (loss) | (1,441) |
Net current period accumulated other comprehensive income (loss) | (1,441) |
Accumulated Other Comprehensive Income (Loss), net of taxes | |
Net change in unrealized gain (loss) | 4,360 |
Net current period accumulated other comprehensive income (loss) | $ 4,360 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Not Designated as Hedging Instrument | Cash Flow Hedge | ||
Derivative [Line Items] | ||
Notional amount of cash flow hedges | $ 395.1 | $ 418.3 |
Other Assets and Accrued Liab_3
Other Assets and Accrued Liabilities - Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | |||||
Prepaid rent | $ 10,058 | $ 10,519 | |||
Prepaid maintenance expenses | 3,546 | 3,062 | |||
Interest rate swaps | 5,447 | 2,411 | |||
Deferred contract asset | 35,617 | 0 | |||
Other | 8,715 | 1,119 | |||
Prepaid expenses and other | $ 63,383 | $ 59,407 | $ 58,459 | $ 46,987 | $ 17,111 |
Other Assets and Accrued Liab_4
Other Assets and Accrued Liabilities - Long-Term Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | |||||
Deferred contract asset | $ 36,260 | $ 0 | |||
Other | 3,922 | 2,914 | |||
Deferred charges and other assets, net | 53,723 | $ 51,917 | $ 50,344 | $ 44,761 | 13,690 |
Interest rate swap | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest rate swaps | $ 13,541 | $ 10,776 |
Other Assets and Accrued Liab_5
Other Assets and Accrued Liabilities - Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Sales and property taxes payable | $ 3,513 | $ 3,872 |
Severance accrual | 0 | 1,028 |
Asset retirement obligations | 582 | 492 |
Accrued programming costs | 2,927 | 2,805 |
Other current liabilities | 7,734 | 5,717 |
Accrued liabilities and other | $ 14,756 | $ 13,914 |
Other Assets and Accrued Liab_6
Other Assets and Accrued Liabilities - Long-Term Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | |||
Non-current portion of deferred revenues | $ 12,659 | $ 14,030 | |
Other | 1,908 | 1,263 | |
Other liabilities | $ 14,567 | $ 14,093 | $ 15,293 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 790,125 | $ 836,500 |
Less: unamortized loan fees | 11,337 | 14,542 |
Total debt, net of unamortized loan fees | 778,788 | 821,958 |
Current maturities of long-term debt, net of current unamortized loan fees | 84,743 | 64,397 |
Long-term debt, less current maturities, net of unamortized loan fees | 694,045 | 757,561 |
Term loan A-1 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 400,125 | 436,500 |
Term loan A-2 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 390,000 | $ 400,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Feb. 16, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||
Total debt, net of unamortized loan fees | $ 778,788,000 | $ 821,958,000 | |
Unamortized loan fees | $ 11,337,000 | $ 14,542,000 | |
Effective rate | 4.11% | ||
Principal balance of term loans outstanding, percentage | 50.00% | ||
Fixed rate to pay | 1.16% | ||
Leverage ratio two | 3.25 | ||
Leverage ratio three | 3 | ||
Debt service coverage ratio, actual | 3.25 | ||
Debt instrument covenants minimum liquidity amount | $ 25,000,000 | ||
Interest rate reduction, basis points | 0.05% | ||
Credit facility modification, charitable contributions | $ 1,500,000 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Leverage ratio one | 3.75 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Debt service coverage ratio, actual | 2 | ||
Term loan A-1 | |||
Debt Instrument [Line Items] | |||
Periodic payment of principal | $ 6,100,000 | ||
Periodic payment principal, period two | 12,100,000 | ||
Periodic payment principal, period three | $ 18,200,000 | ||
Term loan A-1 | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 2.25% | ||
Term loan A-2 | |||
Debt Instrument [Line Items] | |||
Periodic payment of principal | $ 10,000,000 | ||
Term loan A-2 | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Variable interest rate | 2.50% |
Long-Term Debt - Schedule of Fi
Long-Term Debt - Schedule of Financial Covenants (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Debt Disclosure [Abstract] | |
Leverage ratio, actual | 2.61 |
Covenant requirement, total leverage ratio | 3.75 |
Debt service coverage ratio, actual | 3.25 |
Minimum debt service coverage ratio | 2 |
Covenant, liquidity balance, actual | $ 149,100,000 |
Debt instrument covenants minimum liquidity amount | $ 25,000,000 |
Segment Reporting - Selected Fi
Segment Reporting - Selected Financial Data for Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
External revenue | ||||
Operating revenues | $ 158,731 | $ 151,782 | $ 469,370 | $ 458,920 |
Operating expenses: | ||||
Selling, general and administrative | 27,452 | 42,199 | 86,117 | 125,374 |
Acquisition, integration and migration expenses | 0 | 1,706 | 0 | 9,873 |
Depreciation and amortization | 40,028 | 42,568 | 124,632 | 132,297 |
Total operating expenses | 130,402 | 142,307 | 403,118 | 430,520 |
Operating income (loss) | 28,329 | 9,475 | 66,252 | 28,400 |
Wireless | ||||
External revenue | ||||
Operating revenues | 114,836 | 111,266 | 339,910 | 338,395 |
Cable | ||||
External revenue | ||||
Operating revenues | 30,916 | 29,090 | 92,610 | 86,512 |
Wireline | ||||
External revenue | ||||
Operating revenues | 12,979 | 11,426 | 36,850 | 34,013 |
Other | ||||
External revenue | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Intersegment Eliminations | ||||
External revenue | ||||
Operating revenues | (9,172) | (10,663) | (28,731) | (30,428) |
Operating expenses: | ||||
Selling, general and administrative | (714) | (736) | (2,043) | (2,114) |
Acquisition, integration and migration expenses | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total operating expenses | (9,172) | (10,663) | (28,731) | (30,428) |
Operating income (loss) | 0 | 0 | 0 | 0 |
Intersegment Eliminations | Wireless | ||||
External revenue | ||||
Operating revenues | (1,263) | (1,239) | (3,746) | (3,707) |
Intersegment Eliminations | Cable | ||||
External revenue | ||||
Operating revenues | (1,266) | (999) | (3,394) | (2,153) |
Intersegment Eliminations | Wireline | ||||
External revenue | ||||
Operating revenues | (6,643) | (8,425) | (21,591) | (24,568) |
Intersegment Eliminations | Other | ||||
External revenue | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Operating Segments | ||||
External revenue | ||||
Operating revenues | 167,903 | 498,101 | ||
Operating Segments | Wireless | ||||
External revenue | ||||
Operating revenues | 116,099 | 112,505 | 343,656 | 342,102 |
Operating expenses: | ||||
Selling, general and administrative | 11,191 | 30,099 | 35,693 | 88,201 |
Acquisition, integration and migration expenses | 1,691 | 9,607 | ||
Depreciation and amortization | 30,363 | 32,929 | 95,853 | 104,231 |
Total operating expenses | 88,747 | 105,760 | 276,786 | 319,868 |
Operating income (loss) | 27,352 | 6,745 | 66,870 | 22,234 |
Operating Segments | Cable | ||||
External revenue | ||||
Operating revenues | 32,182 | 30,089 | 96,004 | 88,665 |
Operating expenses: | ||||
Selling, general and administrative | 5,331 | 5,358 | 14,940 | 15,083 |
Acquisition, integration and migration expenses | 0 | 0 | ||
Depreciation and amortization | 6,102 | 6,192 | 18,305 | 18,070 |
Total operating expenses | 26,348 | 26,463 | 78,560 | 78,205 |
Operating income (loss) | 5,834 | 3,626 | 17,444 | 10,460 |
Operating Segments | Wireline | ||||
External revenue | ||||
Operating revenues | 19,622 | 19,851 | 58,441 | 58,581 |
Operating expenses: | ||||
Selling, general and administrative | 1,780 | 1,706 | 5,183 | 5,065 |
Acquisition, integration and migration expenses | 0 | 0 | ||
Depreciation and amortization | 3,435 | 3,249 | 10,069 | 9,536 |
Total operating expenses | 14,500 | 14,762 | 43,754 | 43,010 |
Operating income (loss) | 5,122 | 5,089 | 14,687 | 15,571 |
Operating Segments | Other | ||||
External revenue | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Operating expenses: | ||||
Selling, general and administrative | 9,864 | 5,772 | 32,344 | 19,139 |
Acquisition, integration and migration expenses | 15 | 266 | ||
Depreciation and amortization | 128 | 198 | 405 | 460 |
Total operating expenses | 9,979 | 5,985 | 32,749 | 19,865 |
Operating income (loss) | (9,979) | (5,985) | (32,749) | (19,865) |
Service revenue | ||||
External revenue | ||||
Operating revenues | 130,320 | 139,455 | 386,003 | 418,792 |
Service revenue | Wireless | ||||
External revenue | ||||
Operating revenues | 96,299 | 107,395 | 284,154 | 323,262 |
Service revenue | Cable | ||||
External revenue | ||||
Operating revenues | 28,578 | 26,934 | 85,797 | 80,229 |
Service revenue | Wireline | ||||
External revenue | ||||
Operating revenues | 5,443 | 5,126 | 16,052 | 15,301 |
Service revenue | Other | ||||
External revenue | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Equipment revenue | ||||
External revenue | ||||
Operating revenues | 15,963 | 1,994 | 49,551 | 8,303 |
Equipment revenue | Wireless | ||||
External revenue | ||||
Operating revenues | 15,666 | 1,742 | 48,859 | 7,666 |
Equipment revenue | Cable | ||||
External revenue | ||||
Operating revenues | 234 | 219 | 537 | 547 |
Equipment revenue | Wireline | ||||
External revenue | ||||
Operating revenues | 63 | 33 | 155 | 90 |
Equipment revenue | Other | ||||
External revenue | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Other | ||||
External revenue | ||||
Operating revenues | 12,448 | 10,333 | 33,816 | 31,825 |
Other | Wireless | ||||
External revenue | ||||
Operating revenues | 2,871 | 2,129 | 6,897 | 7,467 |
Other | Cable | ||||
External revenue | ||||
Operating revenues | 2,104 | 1,937 | 6,276 | 5,736 |
Other | Wireline | ||||
External revenue | ||||
Operating revenues | 7,473 | 6,267 | 20,643 | 18,622 |
Other | Other | ||||
External revenue | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Cost of services | ||||
Operating expenses: | ||||
Cost of services | 47,886 | 48,552 | 146,362 | 145,744 |
Cost of services | Intersegment Eliminations | ||||
Operating expenses: | ||||
Cost of services | (8,458) | (9,927) | (26,688) | (28,314) |
Cost of services | Operating Segments | Wireless | ||||
Operating expenses: | ||||
Cost of services | 32,253 | 33,825 | 99,491 | 100,745 |
Cost of services | Operating Segments | Cable | ||||
Operating expenses: | ||||
Cost of services | 14,837 | 14,858 | 45,118 | 44,956 |
Cost of services | Operating Segments | Wireline | ||||
Operating expenses: | ||||
Cost of services | 9,266 | 9,796 | 28,441 | 28,357 |
Cost of services | Operating Segments | Other | ||||
Operating expenses: | ||||
Cost of services | (12) | 0 | 0 | 0 |
Cost of goods sold | ||||
Operating expenses: | ||||
Cost of services | 15,036 | 7,282 | 46,007 | 17,232 |
Cost of goods sold | Intersegment Eliminations | ||||
Operating expenses: | ||||
Cost of services | 0 | 0 | 0 | 0 |
Cost of goods sold | Operating Segments | Wireless | ||||
Operating expenses: | ||||
Cost of services | 14,940 | 7,216 | 45,749 | 17,084 |
Cost of goods sold | Operating Segments | Cable | ||||
Operating expenses: | ||||
Cost of services | 78 | 55 | 197 | 96 |
Cost of goods sold | Operating Segments | Wireline | ||||
Operating expenses: | ||||
Cost of services | 19 | 11 | 61 | 52 |
Cost of goods sold | Operating Segments | Other | ||||
Operating expenses: | ||||
Cost of services | $ (1) | $ 0 | $ 0 | $ 0 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | ||||
Total consolidated operating income (loss) | $ 28,329 | $ 9,475 | $ 66,252 | $ 28,400 |
Interest expense | (9,001) | (9,823) | (27,184) | (28,312) |
Gain (loss) on investments, net | 88 | 202 | 112 | 395 |
Non-operating income (loss), net | 966 | 1,003 | 2,770 | 3,482 |
Income (loss) before income taxes | $ 20,382 | $ 857 | $ 41,950 | $ 3,965 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | Nov. 30, 2018 | Oct. 30, 2018 |
Subsequent Event [Line Items] | ||
Dividends declared (in usd per share) | $ 0.27 | |
Scenario, Forecast | ||
Subsequent Event [Line Items] | ||
Dividends payable (in usd per share) | $ 0.27 | |
Dividend payout | $ 13.4 |