Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-09881 | |
Entity Registrant Name | SHENANDOAH TELECOMMUNICATIONS COMPANY | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1162807 | |
Entity Address, Address Line One | 500 Shentel Way | |
Entity Address, City or Town | Edinburg | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22824 | |
City Area Code | 540 | |
Local Phone Number | 984-4141 | |
Title of 12(b) Security | Common Stock (No Par Value) | |
Trading Symbol | SHEN | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 49,965,379 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000354963 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 532,544 | $ 195,397 |
Accounts receivable, net of allowance for doubtful accounts of $565 and $614, respectively | 25,026 | 70,393 |
Prepaid expenses and other | 16,463 | 9,631 |
Current assets held for sale | 0 | 1,133,294 |
Total current assets | 574,033 | 1,408,715 |
Investments | 13,410 | 13,769 |
Property, plant and equipment, net | 525,799 | 440,427 |
Goodwill and Intangible assets, net | 106,146 | 106,759 |
Operating lease right-of-use assets | 56,952 | 50,387 |
Deferred charges and other assets | 16,750 | 11,650 |
Total assets | 1,293,090 | 2,031,707 |
Current liabilities: | ||
Current maturities of long-term debt, net of unamortized loan fees | 0 | 688,463 |
Accounts payable | 17,433 | 19,599 |
Advanced billings and customer deposits | 9,510 | 8,594 |
Accrued compensation | 9,482 | 16,413 |
Income taxes payable | 432,760 | 6,951 |
Current operating lease liabilities | 2,648 | 1,970 |
Accrued liabilities and other | 13,590 | 13,869 |
Current liabilities held for sale | 0 | 452,202 |
Total current liabilities | 485,423 | 1,208,061 |
Other long-term liabilities: | ||
Deferred income taxes | 60,231 | 150,652 |
Asset retirement obligations | 9,364 | 4,955 |
Benefit plan obligations | 12,490 | 14,645 |
Non-current operating lease liabilities | 51,786 | 46,095 |
Other liabilities | 25,030 | 24,905 |
Total other long-term liabilities | 158,901 | 241,252 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, no par value, authorized 96,000; 49,965 and 49,868 issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 0 | 0 |
Additional paid in capital | 47,832 | 47,317 |
Retained earnings | 600,934 | 539,783 |
Accumulated other comprehensive loss, net of taxes | 0 | (4,706) |
Total shareholders’ equity | 648,766 | 582,394 |
Total liabilities and shareholders’ equity | $ 1,293,090 | $ 2,031,707 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 565 | $ 614 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 96,000 | 96,000 |
Common stock, shares issued (in shares) | 49,965 | 49,868 |
Common stock, shares, outstanding (in shares) | 49,965 | 49,868 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||||
Service revenue and other | $ 62,244 | $ 55,173 | $ 182,635 | $ 162,643 |
Operating expenses | ||||
Cost of services | 25,426 | 22,669 | 73,044 | 65,167 |
Selling, general and administrative | 20,238 | 20,039 | 60,711 | 64,227 |
Restructuring expense | 1,160 | 0 | 1,821 | 0 |
Depreciation and amortization | 14,248 | 11,995 | 40,813 | 36,010 |
Total operating expenses | 61,072 | 54,703 | 176,389 | 165,404 |
Operating income (loss) | 1,172 | 470 | 6,246 | (2,761) |
Other (expense) income: | ||||
Other income, net | 138 | 1,083 | 3,076 | 3,103 |
Income before income taxes | 1,310 | 1,553 | 9,322 | 342 |
Income tax expense (benefit) | (5,422) | 141 | (2,315) | (684) |
Income from continuing operations | 6,732 | 1,412 | 11,637 | 1,026 |
Discontinued operations: | ||||
(Loss) income from discontinued operations, net of tax | (406) | 33,509 | 99,632 | 76,422 |
Gain on the sale of discontinued operations, net of tax | 886,732 | 0 | 886,732 | 0 |
Total income from discontinued operations, net of tax | 886,326 | 33,509 | 986,364 | 76,422 |
Net income | 893,058 | 34,921 | 998,001 | 77,448 |
Other comprehensive income: | ||||
Net gains/(losses) on interest rate swaps, net of tax | 3,620 | 539 | 4,706 | (5,509) |
Comprehensive income | $ 896,678 | $ 35,460 | $ 1,002,707 | $ 71,939 |
Net income per share, basic and diluted: | ||||
Basic - Income from continuing operations (in dollars per share) | $ 0.13 | $ 0.03 | $ 0.23 | $ 0.02 |
Basic - Income from discontinued operations, net of tax (in dollars per share) | 17.73 | 0.67 | 19.73 | 1.53 |
Basic net income per share (in dollars per share) | 17.86 | 0.70 | 19.96 | 1.55 |
Diluted - Income from continuing operations (in dollars per share) | 0.13 | 0.03 | 0.23 | 0.02 |
Diluted - Income from discontinued operations, net of tax (in dollars per share) | 17.68 | 0.67 | 19.67 | 1.53 |
Diluted net income per share (in dollars per share) | $ 17.81 | $ 0.70 | $ 19.90 | $ 1.55 |
Weighted average shares outstanding, basic (in shares) | 49,984 | 49,911 | 49,984 | 49,889 |
Weighted average shares outstanding, diluted (in shares) | 50,120 | 50,105 | 50,136 | 50,049 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Shares of Common Stock (no par value) | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Beginning balance (in shares) at Dec. 31, 2019 | 49,671 | ||||
Beginning balance at Dec. 31, 2019 | $ 472,428 | $ 42,110 | $ 430,010 | $ 308 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 77,448 | 77,448 | |||
Other comprehensive gain, net of tax (Note 10) | (5,509) | (5,509) | |||
Stock based compensation (in shares) | 152 | ||||
Stock based compensation | 5,974 | 5,974 | |||
Common stock issued | 23 | 23 | |||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (47) | ||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | (2,182) | (2,182) | |||
Common stock issued to acquire a non-controlling interests of nTelos (in shares) | 76 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 49,852 | ||||
Ending balance at Sep. 30, 2020 | 548,182 | 45,925 | 507,458 | (5,201) | |
Beginning balance (in shares) at Jun. 30, 2020 | 49,852 | ||||
Beginning balance at Jun. 30, 2020 | 511,457 | 44,659 | 472,537 | (5,739) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 34,921 | 34,921 | |||
Other comprehensive gain, net of tax (Note 10) | 538 | 538 | |||
Stock based compensation | 1,259 | 1,259 | |||
Common stock issued | 7 | 7 | |||
Ending balance (in shares) at Sep. 30, 2020 | 49,852 | ||||
Ending balance at Sep. 30, 2020 | $ 548,182 | 45,925 | 507,458 | (5,201) | |
Beginning balance (in shares) at Dec. 31, 2020 | 49,868 | 49,868 | |||
Beginning balance at Dec. 31, 2020 | $ 582,394 | 47,317 | 539,783 | (4,706) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 998,001 | 998,001 | |||
Other comprehensive gain, net of tax (Note 10) | 4,706 | 4,706 | |||
Dividends declared | (936,850) | (936,850) | |||
Stock based compensation (in shares) | 118 | ||||
Stock based compensation | 2,041 | 2,041 | |||
Stock options exercised (in shares) | 15 | ||||
Stock options exercised | 85 | 85 | |||
Common stock issued | 16 | 16 | |||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (36) | ||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | $ (1,627) | (1,627) | |||
Ending balance (in shares) at Sep. 30, 2021 | 49,965 | 49,965 | |||
Ending balance at Sep. 30, 2021 | $ 648,766 | 47,832 | 600,934 | 0 | |
Beginning balance (in shares) at Jun. 30, 2021 | 49,950 | ||||
Beginning balance at Jun. 30, 2021 | 687,787 | 46,681 | 644,726 | (3,620) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 893,058 | 893,058 | |||
Other comprehensive gain, net of tax (Note 10) | 3,620 | 3,620 | |||
Dividends declared | (936,850) | (936,850) | |||
Stock based compensation | 1,061 | 1,061 | |||
Stock options exercised (in shares) | 15 | ||||
Stock options exercised | 85 | 85 | |||
Common stock issued | $ 5 | 5 | |||
Ending balance (in shares) at Sep. 30, 2021 | 49,965 | 49,965 | |||
Ending balance at Sep. 30, 2021 | $ 648,766 | $ 47,832 | $ 600,934 | $ 0 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Jul. 02, 2021 | Sep. 30, 2021 | Sep. 30, 2021 |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividend declared per share (in dollars per share) | $ 18.75 | $ 18.75 | $ 18.75 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 998,001 | $ 77,448 |
Total income from discontinued operations, net of tax | 986,364 | 76,422 |
Income from continuing operations | 11,637 | 1,026 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 40,193 | 35,522 |
Amortization | 620 | 488 |
Accretion of asset retirement obligations | 298 | 247 |
Bad debt expense | 755 | 514 |
Stock based compensation expense, net of amount capitalized | 1,953 | 5,306 |
Deferred income taxes | 4,384 | (279) |
Gain from patronage and investments | (438) | (596) |
Amortization of long-term debt issuance costs | 109 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (1,195) | (1,189) |
Current income taxes | (6,870) | (261) |
Operating lease right-of-use assets | 2,631 | 2,966 |
Other assets | (8,841) | (4,122) |
Accounts payable | (5,626) | (276) |
Lease liabilities | (2,845) | (1,890) |
Other deferrals and accruals | (5,193) | 7,344 |
Net cash provided by operating activities - continuing operations | 31,572 | 44,800 |
Net cash provided by operating activities - discontinued operations | 121,067 | 182,499 |
Net cash provided by operating activities | 152,639 | 227,299 |
Cash flows from investing activities: | ||
Capital expenditures | (118,800) | (82,740) |
Cash disbursed for deposit on FCC spectrum leases | 0 | (16,118) |
Proceeds from sale of assets and other | 200 | 252 |
Net cash used in investing activities - continuing operations | (118,600) | (98,606) |
Net cash provided by investing activities - discontinued operations | 1,944,063 | (17,794) |
Net cash provided by (used in) investing activities | 1,825,463 | (116,400) |
Cash flows from financing activities: | ||
Payments for debt issuance costs | (841) | 0 |
Dividends paid, net of dividends reinvested | (936,850) | 0 |
Taxes paid for equity award issuances | (1,627) | (2,182) |
Payments for financing arrangements and other | (1,081) | (727) |
Net cash used in financing activities - continuing operations | (940,399) | (2,909) |
Net cash used in financing activities - discontinued operations | (700,556) | (25,591) |
Net cash used in financing activities | (1,640,955) | (28,500) |
Net increase in cash and cash equivalents | 337,147 | 82,399 |
Cash and cash equivalents, beginning of period | 195,397 | 101,651 |
Cash and cash equivalents, end of period | $ 532,544 | $ 184,050 |
Basis of Presentation and Other
Basis of Presentation and Other Information | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Other Information | Basis of Presentation and Other Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. All normal recurring adjustments considered necessary for a fair presentation have been included. Certain disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) have been omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2020. The preparation of the unaudited interim consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingencies at the date of the unaudited interim condensed consolidated financial statements. These estimates are inherently subject to judgment and actual results could differ. Adoption of New Accounting Principles There have been no material 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 2020 Annual Report on Form 10-K, that would be expected to impact the Company. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On August 26, 2020, Sprint Corporation ("Sprint"), an indirect subsidiary of T-Mobile US, Inc., ("T-Mobile"), on behalf of and as the direct or indirect owner of Sprint PCS, delivered notice to the Company exercising its option to purchase the assets and operations of our Wireless operations for 90% of the “Entire Business Value” (as defined under our affiliate agreement and determined pursuant to the appraisal process set forth therein). Shortly thereafter, the Company committed to a plan to sell the discontinued Wireless operations. On July 1, 2021, pursuant to the previously announced Asset Purchase Agreement (the “Purchase Agreement”), dated May 28, 2021, between Shentel and T-Mobile, Shentel completed the sale to T-Mobile of its Wireless assets and operations for cash consideration of approximately $1.94 billion, inclusive of the approximately $60 million settlement of the waived management fees by Sprint, and net of certain transaction expenses (the “Transaction”). The assets and liabilities that transferred in the sale (the "disposal group") were presented as held for sale within our historical unaudited condensed consolidated balance sheets, and discontinued operations within our historical unaudited condensed consolidated statements of comprehensive income. The transaction was structured as an asset sale for income tax purposes. As a result, no current or deferred tax assets or liabilities were included within the disposal group. While our long-term debt did not transfer in the sale, its provisions required us to fully repay all of the debt concurrent with the consummation of the sale. Our debt was therefore presented outside of the disposal group as a current liability as of December 31, 2020. Our related interest rate swap liabilities were also presented outside of the disposal group as a current liability as of December 31, 2020, because management terminated them at consummation. Because repayment of the debt is contractually triggered by the sale, the related interest expense and debt extinguishment costs were presented within discontinued operations under the relevant authoritative guidance. The carrying amounts of the major classes of assets and liabilities, classified as held for sale in the consolidated balance sheets, were as follows: (in thousands) December 31, ASSETS Inventory $ 5,746 Prepaid expenses and other 47,003 Property, plant and equipment, net 299,647 Intangible assets, net 176,459 Goodwill 146,383 Operating lease right-of-use assets 421,586 Deferred charges and other assets 36,470 Current assets held for sale $ 1,133,294 LIABILITIES Current operating lease liabilities $ 409,887 Accrued liabilities and other 8,770 Asset retirement obligations 33,545 Current liabilities held for sale $ 452,202 Income from discontinued operations, net of tax in the consolidated statements of comprehensive income consist of the following: (in thousands) Three Months Ended Nine Months Ended Revenue: 2021 2020 2021 2020 Service revenue and other $ — $ 100,963 $ 201,076 $ 302,488 Equipment revenue — 9,862 12,253 32,222 Total revenue — 110,825 213,329 334,710 Operating expenses: Cost of services — 28,567 38,144 95,242 Cost of goods sold — 9,600 11,964 31,565 Selling, general and administrative — 7,696 17,514 25,931 Severance expense — — 465 — Depreciation and amortization — 15,077 — 62,804 Total operating expenses — 60,940 68,087 215,542 Operating income — 49,885 145,242 119,168 Other (expense) income: Debt extinguishment (11,032) — (11,032) — Interest expense and other, net (733) (4,508) (9,434) (15,477) Gain on sale of disposition of Wireless assets and operations 1,224,815 — 1,224,815 — Income before income taxes 1,213,050 45,377 1,349,591 103,691 Income tax expense 326,724 11,868 363,227 27,269 Income from discontinued operations, net of tax $ 886,326 $ 33,509 $ 986,364 $ 76,422 Consummation of the sale triggered the recognition of approximately $21 million of incremental selling costs during the three months ended September 30, 2021, for contingent deal advisory fees and severance expenses, which are netted against the gain on sale of disposition of Wireless assets and operations. Additionally, also triggered by the disposition event, we recognized an $11.0 million loss on debt extinguishment and incurred interest expense of approximately $2.6 million on the termination of our interest rate swaps. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Our Broadband segment provides broadband data, video and voice services to residential and commercial customers in portions of Virginia, West Virginia, Maryland, Pennsylvania and Kentucky, via fiber optic, hybrid fiber coaxial cable, and fixed wireless networks. The Broadband segment also provides voice and DSL telephone services to customers in Virginia’s Shenandoah County and portions of adjacent counties as a Rural Local Exchange Carrier (“RLEC”). These contracts are generally cancellable at the customer’s discretion without penalty at any time. We allocate the total transaction price in these transactions based upon the standalone selling price of each distinct good or service. We generally recognize 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. Installation fees, charged upfront without transfer of commensurate goods or services to the customer, are allocated to services and are recognized ratably over the longer of the contract term or the period in which the unrecognized fee remains material to the contract, which we estimate to be about one year. Additionally, the Company incurs commission and installation costs related to in-house and third-party vendors which are capitalized and amortized over the expected weighted average customer life which is approximately six years. Our Broadband segment also provides Ethernet and Wavelength fiber optic services to commercial fiber customers under capacity agreements, and the related revenue is recognized over time. In some cases, non-refundable upfront fees are charged for connecting commercial fiber customers to our fiber network. Those amounts are recognized ratably over the longer of the contract term or the period in which the unrecognized fee remains material to the respective contract. A related contract liability of $3.8 million at September 30, 2021, is expected to be recognized into revenue at the rate of approximately $0.2 million per year. The Broadband segment also leases dedicated fiber optic strands to customers as part of “dark fiber” agreements, which are accounted for as leases under Accounting Standards Codification 842, Leases, ("ASC 842"). Our Tower segment leases space on owned cell towers to our Broadband segment, and to other wireless carriers. Revenue from these leases is accounted for under ASC 842. Refer to Note 14, Segment Reporting , for a summary of these revenue streams. Below is a summary of the Broadband segment's capitalized contract acquisition and fulfillment costs: Three Months Ended Nine Months Ended (in thousands) 2021 2020 2021 2020 Beginning Balance $ 15,290 $ 12,780 $ 14,669 $ 11,005 Contract payments 1,532 2,195 4,747 6,128 Contract amortization (724) (1,013) (3,318) (3,171) Ending Balance $ 16,098 $ 13,962 $ 16,098 $ 13,962 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Investments | Investments Investments consist of the following: (in thousands) September 30, December 31, SERP Investments at fair value $ 2,165 $ 2,687 Cost method investments 10,905 10,536 Equity method investments 340 546 Total investments $ 13,410 $ 13,769 SERP Investments at Fair Value: The Supplemental Executive Retirement Plan (“SERP”) is a benefit plan that provides deferred compensation to certain employees. The Company holds the related investments in a rabbi trust as a source of funding for future payments under the plan. The SERP’s investments were designated as trading securities and will be liquidated and paid out to the participants upon retirement. The benefit obligation to participants is always equal to the value of the SERP assets under ASC 710, Compensation . Changes to the investments' fair value are presented in Other income (expense), while the reciprocal changes in the liability are presented in selling, general and administrative expense. At September 30, 2021, an additional $0.9 million of SERP investments were presented as prepaid expenses and other (current assets) as we intend to liquidate certain investments to pay the current portion of our SERP obligation. Cost Method Investments : Our investment in CoBank ACB’s Class A common stock represented substantially all of our cost method investments with a balance of $10.1 million and $9.8 million at September 30, 2021 and December 31, 2020, respectively. We recognized approximately $0.5 million and $1.0 million of patronage income in Other income (expense) during the three months ended September 30, 2021 and 2020, respectively, and approximately $1.5 million and $3.0 million during the nine months ended September 30, 2021 and 2020, respectively. Historically, approximately 75% of the patronage distributions were collected in cash and 25% in equity. Equity Method Investments: At September 30, 2021, the Company had a 20.0% ownership interest in Valley Network Partnership (“ValleyNet”). The Company and ValleyNet purchase capacity on one another’s fiber network. We recognized revenue of $0.2 million from providing service to ValleyNet during each of the three months ended September 30, 2021, and 2020, respectively, and $0.5 million and $0.7 million during the nine months ended September 30, 2021, and 2020, respectively. We recognized cost of service of $30 thousand and $0.7 million for the use of ValleyNet’s network during the three months ended September 30, 2021, and 2020, respectively, and $1.1 million and $2.2 million during the nine months ended September 30, 2021 and 2020, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following: ($ in thousands) Estimated Useful Lives September 30, December 31, Land $ 3,771 $ 3,909 Land improvements 10 years 3,141 2,910 Buildings and structures 10 - 40 years 94,539 91,335 Cable and fiber 15 - 30 years 428,055 390,209 Equipment and software 4 - 8 years 374,019 331,047 Plant in service 903,525 819,410 Plant under construction 84,731 49,417 Total property, plant and equipment 988,256 868,827 Less: accumulated amortization and depreciation 462,457 428,400 Property, plant and equipment, net $ 525,799 $ 440,427 Property, plant and equipment net, increased due primarily to capital expenditures in the Broadband segment driven by our Glo Fiber and Beam market expansions. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Other intangible assets consisted of the following: September 30, 2021 December 31, 2020 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Goodwill - Broadband $ 3,244 $ — $ 3,244 $ 3,244 $ — $ 3,244 Indefinite-lived intangibles: Cable franchise rights $ 64,334 $ — $ 64,334 $ 64,334 $ — $ 64,334 FCC spectrum licenses 29,958 — 29,958 29,958 — 29,958 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 94,433 — 94,433 94,433 — 94,433 Finite-lived intangibles: FCC spectrum licenses 6,811 (594) 6,217 6,811 (340) 6,471 Subscriber relationships 28,425 (26,338) 2,087 28,425 (26,000) 2,425 Other intangibles 463 (298) 165 463 (277) 186 Total finite-lived intangibles 35,699 (27,230) 8,469 35,699 (26,617) 9,082 Total goodwill and intangible assets $ 133,376 $ (27,230) $ 106,146 $ 133,376 $ (26,617) $ 106,759 Amortization expense was $0.2 million during both of the three months ended September 30, 2021 and 2020, and $0.6 million and $0.5 million for the nine months ended September 30, 2021 and 2020, respectively. The Federal Communications Commission ("FCC") has delayed the issuance of Citizen Broadband Radio Service (CBRS) Priority Access Licenses acquired by the Company for $16.2 million in September 2020. The delay stems from a FCC review of the aggregate ownership of CBRS spectrum by certain shareholders of the Company. The Company is in the process of resolving this issue. The Company does not believe that it is probable or reasonably possible of a material loss. |
Other Assets and Accrued Liabil
Other Assets and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
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, December 31, Prepaid maintenance expenses $ 8,665 $ 4,018 Broadband contract acquisition and fulfillment costs 4,426 4,417 SERP investments 862 — Other 2,510 1,196 Prepaid expenses and other $ 16,463 $ 9,631 Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) September 30, December 31, Broadband contract acquisition and fulfillment costs $ 11,672 $ 10,252 Prepaid expenses and other 5,078 1,398 Deferred charges and other assets $ 16,750 $ 11,650 Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) September 30, December 31, Interest rate swaps $ — $ 4,048 Accrued programming costs 3,180 2,868 Sales and property taxes payable 1,769 1,072 Restructuring accrual 2,388 — Other current liabilities 6,253 5,881 Accrued liabilities and other $ 13,590 $ 13,869 Other liabilities, classified as long-term liabilities, included the following: (in thousands) September 30, December 31, Noncurrent portion of deferred lease revenue $ 19,066 $ 18,687 FCC spectrum license obligations 3,817 3,845 Noncurrent portion of financing leases 1,575 1,492 Other 572 881 Other liabilities $ 25,030 $ 24,905 During 2021, we implemented a restructuring plan whereby certain employees were notified of their pending dismissal under the workforce reduction program. The following table identifies the activity that has occurred as a result of the plan: (in thousands) Three Months Ended Nine Months Ended Beginning Balance June 30, 2021 and January 1, 2021, respectively $ 608 $ — Expense (1) 3,213 4,340 Payments (2) (1,433) (1,952) Ending Balance - September 30, 2021 $ 2,388 $ 2,388 _______________________________________________________ (1) For the three and nine months ended September 30, 2021, respectively, approximately $2.2 million and $2.5 million of expense was recognized within discontinued operations. (2) For the three and nine months ended September 30, 2021, respectively, approximately $1.1 million and $1.2 million of payments were attributable to discontinued operations. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. These agreements include fixed rental payments as well as variable rental payments, such as those based on relevant inflation indices. The accounting lease term includes optional renewal periods that we are reasonably certain to exercise based on our assessment of relevant contractual and economic factors. The related lease payments are discounted at lease commencement using the Company's incremental borrowing rate in order to measure the lease liability and right of use asset. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the observable unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate. At September 30, 2021, our operating leases had a weighted average remaining lease term of 20.2 years and a weighted average discount rate of 4.4%. Our finance leases had a weighted average remaining lease term of 13.5 years and a weighted average discount rate of 5.2%. During each of the three months ended September 30, 2021 and 2020, we recognized $2.3 million and $2.3 million of operating lease expense, respectively. We recognized $0.1 million and $0.1 million of interest and depreciation expense on finance leases during the three months ended September 30, 2021 and 2020, respectively. Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Variable lease payments and short-term lease expense were both immaterial. We remitted $1.4 million and $1.2 million of operating lease payments during the three months ended September 30, 2021 and 2020, respectively. We also obtained $2.2 million and $2.4 million of leased assets in exchange for new operating lease liabilities recognized during the three months ended September 30, 2021 and 2020, respectively. The following table summarizes the expected maturity of lease liabilities at September 30, 2021: (in thousands) Operating Leases Finance Leases Total 2021 $ 1,487 $ 63 $ 1,550 2022 5,562 175 5,737 2023 5,014 177 5,191 2024 4,661 179 4,840 2025 4,457 181 4,638 2026 and thereafter 68,634 1,551 70,185 Total lease payments 89,815 2,326 92,141 Less: Interest 35,381 654 36,035 Present value of lease liabilities $ 54,434 $ 1,672 $ 56,106 We recognized $2.4 million and $2.7 million of operating lease revenue during the three months ended September 30, 2021 and 2020, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place at September 30, 2021: (in thousands) Operating Leases 2021 $ 3,474 2022 13,749 2023 12,363 2024 11,614 2025 10,659 2026 and thereafter 36,957 Total $ 88,816 |
Leases | Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. These agreements include fixed rental payments as well as variable rental payments, such as those based on relevant inflation indices. The accounting lease term includes optional renewal periods that we are reasonably certain to exercise based on our assessment of relevant contractual and economic factors. The related lease payments are discounted at lease commencement using the Company's incremental borrowing rate in order to measure the lease liability and right of use asset. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the observable unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate. At September 30, 2021, our operating leases had a weighted average remaining lease term of 20.2 years and a weighted average discount rate of 4.4%. Our finance leases had a weighted average remaining lease term of 13.5 years and a weighted average discount rate of 5.2%. During each of the three months ended September 30, 2021 and 2020, we recognized $2.3 million and $2.3 million of operating lease expense, respectively. We recognized $0.1 million and $0.1 million of interest and depreciation expense on finance leases during the three months ended September 30, 2021 and 2020, respectively. Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Variable lease payments and short-term lease expense were both immaterial. We remitted $1.4 million and $1.2 million of operating lease payments during the three months ended September 30, 2021 and 2020, respectively. We also obtained $2.2 million and $2.4 million of leased assets in exchange for new operating lease liabilities recognized during the three months ended September 30, 2021 and 2020, respectively. The following table summarizes the expected maturity of lease liabilities at September 30, 2021: (in thousands) Operating Leases Finance Leases Total 2021 $ 1,487 $ 63 $ 1,550 2022 5,562 175 5,737 2023 5,014 177 5,191 2024 4,661 179 4,840 2025 4,457 181 4,638 2026 and thereafter 68,634 1,551 70,185 Total lease payments 89,815 2,326 92,141 Less: Interest 35,381 654 36,035 Present value of lease liabilities $ 54,434 $ 1,672 $ 56,106 We recognized $2.4 million and $2.7 million of operating lease revenue during the three months ended September 30, 2021 and 2020, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place at September 30, 2021: (in thousands) Operating Leases 2021 $ 3,474 2022 13,749 2023 12,363 2024 11,614 2025 10,659 2026 and thereafter 36,957 Total $ 88,816 |
Leases | Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. These agreements include fixed rental payments as well as variable rental payments, such as those based on relevant inflation indices. The accounting lease term includes optional renewal periods that we are reasonably certain to exercise based on our assessment of relevant contractual and economic factors. The related lease payments are discounted at lease commencement using the Company's incremental borrowing rate in order to measure the lease liability and right of use asset. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the observable unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate. At September 30, 2021, our operating leases had a weighted average remaining lease term of 20.2 years and a weighted average discount rate of 4.4%. Our finance leases had a weighted average remaining lease term of 13.5 years and a weighted average discount rate of 5.2%. During each of the three months ended September 30, 2021 and 2020, we recognized $2.3 million and $2.3 million of operating lease expense, respectively. We recognized $0.1 million and $0.1 million of interest and depreciation expense on finance leases during the three months ended September 30, 2021 and 2020, respectively. Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Variable lease payments and short-term lease expense were both immaterial. We remitted $1.4 million and $1.2 million of operating lease payments during the three months ended September 30, 2021 and 2020, respectively. We also obtained $2.2 million and $2.4 million of leased assets in exchange for new operating lease liabilities recognized during the three months ended September 30, 2021 and 2020, respectively. The following table summarizes the expected maturity of lease liabilities at September 30, 2021: (in thousands) Operating Leases Finance Leases Total 2021 $ 1,487 $ 63 $ 1,550 2022 5,562 175 5,737 2023 5,014 177 5,191 2024 4,661 179 4,840 2025 4,457 181 4,638 2026 and thereafter 68,634 1,551 70,185 Total lease payments 89,815 2,326 92,141 Less: Interest 35,381 654 36,035 Present value of lease liabilities $ 54,434 $ 1,672 $ 56,106 We recognized $2.4 million and $2.7 million of operating lease revenue during the three months ended September 30, 2021 and 2020, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place at September 30, 2021: (in thousands) Operating Leases 2021 $ 3,474 2022 13,749 2023 12,363 2024 11,614 2025 10,659 2026 and thereafter 36,957 Total $ 88,816 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our cash payments for interest were $10.4 million and $14.5 million during the nine months ended September 30, 2021 and 2020, respectively. As discussed in Note 2, Discontinued Operations , upon consummation of the Transaction, the Company used approximately $681 million of the proceeds received from the sale to fully repay all outstanding principal amounts under, and terminate, the Credit Agreement existing as of June 30, 2021 ("Prior Credit Agreement"). On July 1, 2021, the Company entered into a Credit Agreement (the “Credit Agreement”) with various financial institutions thereto (the “Lenders”) and CoBank, ACB, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). The Credit Agreement provides for three credit facilities (collectively, the “Facilities”), in an aggregate amount equal to $400 million: (i) a $100 million five-year revolving credit facility (the “Revolver”), (ii) a $150 million five-year delay draw amortizing term loan (the “Term Loan A-1”) and (iii) a $150 million seven-year delay draw amortizing term loan (the “Term Loan A-2” and, together with the Term Loan A-1, the “Term Loans”). The Credit Agreement includes a provision under which the Company may request that additional term loans be made to it in an amount not to exceed the sum of (1) the greater of (a) $75 million and (b) 100% of Consolidated EBIDTA (as defined in the Credit Agreement), calculated on a pro forma basis in accordance with the Credit Agreement, plus (2) an additional unlimited amount subject to a maximum Total Net Leverage Ratio (as defined in the Credit Agreement) of 4.00:1.00, calculated on a pro forma basis in accordance with the Credit Agreement, subject to the receipt of commitments from one or more lenders for any such additional term loans and other customary conditions. The availability of the Facilities to the Company is subject to the satisfaction or waiver of certain customary conditions set forth in the Credit Agreement. The Company may use the proceeds from the Revolver and the Term Loans to finance capital expenditures, provide working capital, and for other general corporate purposes of the Company and its subsidiaries, including the payment of fees and expenses in connection with the foregoing. The Term Loans will be repaid in quarterly principal installments commencing on September 30, 2023, with the unpaid balance of the Term Loans due at maturity, as set forth in the Credit Agreement. Rates for borrowing under the Credit Agreement are based, at the Company’s election, upon whether the borrowing is a LIBOR loan or a base rate loan. LIBOR loans will bear interest at an adjusted LIBOR rate (which shall be no less than 0.00%) plus an applicable margin ranging from 1.50% to 2.75% for the Term Loan A-1 and the Revolver and from 1.50% to 3.00% for the Term Loan A-2, depending on the Company’s Total Net Leverage Ratio. Base rate loans will bear interest at a base rate plus an applicable margin ranging from 0.50% to 1.75% for the Term Loan A-1 and the Revolver and from 0.50% to 2.00% for the Term Loan A-2, depending on the Company’s Total Net Leverage Ratio. In addition, under the terms of the Credit Agreement, the Company agrees to pay the Lenders a fee on undrawn portions of the Term Loans and Revolver from time to time. This fee rate is dependent on the Company’s Total Net Leverage Ratio and ranges from a rate per annum equal to 0.200% to 0.375%. The Credit Agreement contains representations and warranties, and affirmative and negative financial covenants usual and customary for similar secured credit facilities, each of which are applicable to the Company and its subsidiaries, including covenants governing 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, enter into transactions with affiliated persons, make investments or change the nature of the Company’s and its subsidiaries’ businesses. The Company is also subject to certain financial covenants to be measured on a trailing twelve month basis on the last day of each calendar quarter. These covenants include: • maintaining a Total Net Leverage Ratio (as defined in the Credit Agreement) not greater than 4.25 to 1.00 (subject to customary increased leverage periods following certain qualifying acquisitions); and • maintaining a Debt Service Coverage Ratio (as defined in the Credit Agreement) not less than 2.00 to 1.00. Indebtedness outstanding under any of the Facilities may be accelerated upon the occurrence of an Event of Default (as defined in the Credit Agreement). As of September 30, 2021, the Company had not drawn on the Term Loans or the Revolver and was in compliance with the financial covenants in its credit agreements. Rate quotations provided by a group of banks that sustain LIBOR will no longer be required after 2021. As a result, it is uncertain whether LIBOR will continue to be quoted after 2021. Our term loans and revolver identify LIBOR as a reference rate and mature after 2021. Alternative reference rates that replace LIBOR may not yield the same or similar economic results over the terms of the financial instruments. The transition from LIBOR could result in us paying higher or lower interest rates on our current LIBOR-indexed term loans. Our Credit Agreement includes provisions that provide for the identification of a LIBOR replacement rate. Due to the uncertainty regarding the transition from LIBOR-indexed financial instruments, including when it will happen, and the manner in which an alternative reference rate will apply, we cannot yet reasonably estimate the expected financial impact of the LIBOR transition. |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging As discussed in Note 2, Discontinued Operations , upon consummation of the Transaction, the Company used approximately $3 million of the proceeds received from the sale to fully satisfy its obligations under, and terminate, the interest rate swaps. Amounts reclassified from accumulated other comprehensive income (loss) are presented as part of income from discontinued operations. The table below summarizes changes in accumulated other comprehensive income (loss) by component, including the reclassification from accumulated other comprehensive income (loss) into earnings following the swap termination: (in thousands) Gains (Losses) on Income Tax Accumulated Balance as of December 31, 2020 $ (4,048) $ (658) $ (4,706) Amounts reclassified from accumulated other comprehensive income (loss) to earnings as a result of swap termination 4,048 658 4,706 Net current period other comprehensive (loss) income 4,048 658 4,706 Balance as of September 30, 2021 $ — $ — $ — |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files U.S. federal income tax returns and various state income tax returns. The Company is not subject to any state or federal income tax audits as of September 30, 2021. The Company's returns are generally open to examination from 2017 forward and the net operating losses acquired in the acquisition of nTelos are open to examination from 2002 forward. The effective tax rates for the three months ended September 30, 2021 and 2020, differ from the statutory U.S. federal income tax rate of 21% primarily due to the state income taxes, excess tax benefits and other discrete items. Three Months Ended Nine Months Ended (in thousands) 2021 2020 2021 2020 Expected tax expense (benefit) at federal statutory $ 275 $ 326 $ 1,958 $ 72 State income taxes, net of federal tax effect 82 70 551 15 Revaluation of deferred tax liabilities (7,675) — (6,629) — Stranded tax effects reclassified from other comprehensive income 1,620 — 1,620 — Excess tax benefit from share based compensation and other expense, net 276 (255) 185 (771) Income tax (benefit) expense $ (5,422) $ 141 $ (2,315) $ (684) The Company's cash payments for income taxes were approximately $24.9 million and $5.4 million for the nine months ended September 30, 2021 and 2020. The disposition of Wireless assets and operations, (see Note 2 – Discontinued Operations ), triggered a reduction in the Company’s future estimated tax rate as apportionable income and expenses for higher tax rate jurisdictions was reduced, resulting in a revaluation of deferred tax liabilities with a $7.7 million benefit recognized during the three months ended September 30, 2021. The disposition of Wireless assets and operations triggered the recognition of an estimated current tax liability of $428 million scheduled to be paid during the remainder of 2021. |
Earnings per Share and Dividend
Earnings per Share and Dividends | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Earnings per Share and Dividends | Earnings per Share and Dividends We utilize the treasury stock method to calculate the impact on diluted earnings per share that potentially dilutive stock-based compensation awards have. 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) 2021 2020 2021 2020 Calculation of net income per share: Income from continuing operations $ 6,732 $ 1,412 $ 11,637 $ 1,026 Total income from discontinued operations, net of tax $ 886,326 $ 33,509 $ 986,364 $ 76,422 Net income $ 893,058 $ 34,921 $ 998,001 $ 77,448 Basic weighted average shares outstanding 49,984 49,911 49,984 49,889 Basic net income per share - continuing operations $ 0.13 $ 0.03 $ 0.23 $ 0.02 Basic net income per share - discontinued operations $ 17.73 $ 0.67 $ 19.73 $ 1.53 Basic net income per share $ 17.86 $ 0.70 $ 19.96 $ 1.55 Effect of stock-based compensation awards outstanding: Basic weighted average shares outstanding 49,984 49,911 49,984 49,889 Effect from dilutive shares and options outstanding 136 194 152 160 Diluted weighted average shares outstanding 50,120 50,105 50,136 50,049 Diluted net income per share - continuing operations $ 0.13 $ 0.03 $ 0.23 $ 0.02 Diluted net income per share - discontinued operations $ 17.68 $ 0.67 $ 19.67 $ 1.53 Diluted net income per share $ 17.81 $ 0.70 $ 19.90 $ 1.55 On July 2, 2021, the Company’s Board of Directors declared a special dividend of $18.75 per share on the issued and outstanding shares of the Company’s common stock (the “Special Dividend”). The Special Dividend was paid on August 2, 2021. The total payout to Shentel shareholders, including amounts reinvested in the Company’s stock via the Company’s Dividend Reinvestment Plan, was approximately $937 million. On August 4, 2021, in accordance with the 2014 Equity Incentive Plan, the Company's Board of Directors adopted a resolution to modify the outstanding equity awards to offset the loss in intrinsic value caused by the disposition of wireless and the decline in the Company's share price following the special dividend. No other terms or conditions of the outstanding equity awards were modified, no incremental expense was required to be recognized, and there was no significant impact to dilutive securities. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are committed to make payments to satisfy our lease liabilities. The scheduled payments under those obligations are summarized in Note 8, Leases . We are also committed to make annual payments of approximately $108.0 thousand on our FCC spectrum license obligation through 2039. The Company is subject to claims and legal actions that may arise in the ordinary course of business. The Company does not believe that any of these pending claims or legal actions are either probable or reasonably possible of a material loss. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The divestiture of our Wireless operations represents a strategic shift in the Company’s business and qualifies as a discontinued operation. As a result, for all periods presented, the operating results and cash flows related to the Wireless segment were reflected as discontinued operations in our Unaudited Condensed Consolidated Statements of Comprehensive Income and the Unaudited Condensed Consolidated Statements of Cash Flows. The tables below reflect the results of operations of the Company's reportable segments in continuing operations, consistent with internal reporting used by the Company. Three Months Ended September 30, 2021: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 44,783 $ — $ — $ 44,783 Commercial Fiber 9,059 — — 9,059 RLEC & Other 3,972 — — 3,972 Tower lease — 4,356 — 4,356 Service revenue and other 57,814 4,356 — 62,170 Revenue for service provided to the discontinued Wireless operations 99 93 (118) 74 Total revenue 57,913 4,449 (118) 62,244 Operating expenses Cost of services 24,012 1,504 (90) 25,426 Selling, general and administrative 11,898 314 8,026 20,238 Restructuring expense 71 — 1,089 1,160 Depreciation and amortization 12,211 468 1,569 14,248 Total operating expenses 48,192 2,286 10,594 61,072 Operating income (loss) $ 9,721 $ 2,163 $ (10,712) $ 1,172 Three Months Ended September 30, 2020: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 39,477 $ — $ — $ 39,477 Commercial Fiber 5,280 — — 5,280 RLEC & Other 3,853 — — 3,853 Tower lease — 1,864 — 1,864 Service revenue and other 48,610 1,864 — 50,474 Revenue for service provided to the discontinued Wireless operations 2,100 2,637 (38) 4,699 Total revenue 50,710 4,501 (38) 55,173 Operating expenses Cost of services 21,326 1,283 60 22,669 Selling, general and administrative 9,792 330 9,917 20,039 Depreciation and amortization 10,106 467 1,422 11,995 Total operating expenses 41,224 2,080 11,399 54,703 Operating income (loss) $ 9,486 $ 2,421 $ (11,437) $ 470 Nine Months Ended September 30, 2021: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 131,702 $ — $ — $ 131,702 Commercial Fiber 21,975 — — 21,975 RLEC & Other 11,208 — — 11,208 Tower lease — 8,525 — 8,525 Service revenue and other 164,885 8,525 — 173,410 Revenue for service provided to the discontinued Wireless operations 4,409 5,203 (387) 9,225 Total revenue 169,294 13,728 (387) 182,635 Operating expenses Cost of services 69,275 4,070 (301) 73,044 Selling, general and administrative 35,429 886 24,396 60,711 Restructuring expense 203 — 1,618 1,821 Depreciation and amortization 35,747 1,398 3,668 40,813 Total operating expenses 140,654 6,354 29,381 176,389 Operating income (loss) $ 28,640 $ 7,374 $ (29,768) $ 6,246 Nine Months Ended September 30, 2020: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 114,170 $ — $ — $ 114,170 Commercial Fiber 17,762 — — 17,762 RLEC & Other 11,880 — — 11,880 Tower lease — 5,490 — 5,490 Service revenue and other 143,812 5,490 — 149,302 Revenue for service provided to the discontinued Wireless operations 6,818 7,000 (477) 13,341 Total revenue 150,630 12,490 (477) 162,643 Operating expenses Cost of services 61,572 3,537 58 65,167 Selling, general and administrative 28,960 1,095 34,172 64,227 Depreciation and amortization 30,448 1,414 4,148 36,010 Total operating expenses 120,980 6,046 38,378 165,404 Operating income (loss) $ 29,650 $ 6,444 $ (38,855) $ (2,761) A reconciliation of the total of the reportable segments’ operating income to consolidated income before taxes is as follows: Three Months Ended Nine Months Ended (in thousands) 2021 2020 2021 2020 Total consolidated operating income (loss) $ 1,172 $ 470 $ 6,246 $ (2,761) Other income, net 138 1,083 3,076 3,103 Income (loss) from continuing operations before income taxes $ 1,310 $ 1,553 $ 9,322 $ 342 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declaration On October 26, 2021, the Company's Board of Directors approved a dividend of $0.07 per common share. The dividend will be payable on December 1, 2021 to shareholders of record as of the close of business on November 8, 2021. Pension Plan Termination The Company assumed a non-contributory defined benefit pension plan in the 2016 acquisition of nTelos, which was fully integrated into the former Wireless segment, and covered all employees who met eligibility requirements and were employed by nTelos prior to October 1, 2003. This pension plan was closed to nTelos employees hired on or after October 1, 2003 and frozen. As of September 30, 2021, the plan obligation was approximately $6.2 million . On October 13, 2021, the Company adopted a resolution to terminate its pension plan effective December 31, 2021. Following adoption of the resolution, on October 28, 2021, the Company provided notice of intent to terminate the pension plan to participants. The Company is currently in the process of determining the impacts of the plan termination. |
Basis of Presentation and Oth_2
Basis of Presentation and Other Information (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of New Accounting Principles | There have been no material 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 2020 Annual Report on Form 10-K, that would be expected to impact the Company. |
Investment | SERP Investments at Fair Value: The Supplemental Executive Retirement Plan (“SERP”) is a benefit plan that provides deferred compensation to certain employees. The Company holds the related investments in a rabbi trust as a source of funding for future payments under the plan. The SERP’s investments were designated as trading securities and will be liquidated and paid out to the participants upon retirement. The benefit obligation to participants is always equal to the value of the SERP assets under ASC 710, Compensation . Changes to the investments' fair value are presented in Other income (expense), while the reciprocal changes in the liability are presented in selling, general and administrative expense. At September 30, 2021, an additional $0.9 million of SERP investments were presented as prepaid expenses and other (current assets) as we intend to liquidate certain investments to pay the current portion of our SERP obligation. Cost Method Investments : Our investment in CoBank ACB’s Class A common stock represented substantially all of our cost method investments with a balance of $10.1 million and $9.8 million at September 30, 2021 and December 31, 2020, respectively. We recognized approximately $0.5 million and $1.0 million of patronage income in Other income (expense) during the three months ended September 30, 2021 and 2020, respectively, and approximately $1.5 million and $3.0 million during the nine months ended September 30, 2021 and 2020, respectively. Historically, approximately 75% of the patronage distributions were collected in cash and 25% in equity. Equity Method Investments: At September 30, 2021, the Company had a 20.0% ownership interest in Valley Network Partnership (“ValleyNet”). The Company and ValleyNet purchase capacity on one another’s fiber network. We recognized revenue of $0.2 million from providing service to ValleyNet during each of the three months ended September 30, 2021, and 2020, respectively, and $0.5 million and $0.7 million during the nine months ended September 30, 2021, and 2020, respectively. We recognized cost of service of $30 thousand and $0.7 million for the use of ValleyNet’s network during the three months ended September 30, 2021, and 2020, respectively, and $1.1 million and $2.2 million during the nine months ended September 30, 2021 and 2020, respectively. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The carrying amounts of the major classes of assets and liabilities, classified as held for sale in the consolidated balance sheets, were as follows: (in thousands) December 31, ASSETS Inventory $ 5,746 Prepaid expenses and other 47,003 Property, plant and equipment, net 299,647 Intangible assets, net 176,459 Goodwill 146,383 Operating lease right-of-use assets 421,586 Deferred charges and other assets 36,470 Current assets held for sale $ 1,133,294 LIABILITIES Current operating lease liabilities $ 409,887 Accrued liabilities and other 8,770 Asset retirement obligations 33,545 Current liabilities held for sale $ 452,202 Income from discontinued operations, net of tax in the consolidated statements of comprehensive income consist of the following: (in thousands) Three Months Ended Nine Months Ended Revenue: 2021 2020 2021 2020 Service revenue and other $ — $ 100,963 $ 201,076 $ 302,488 Equipment revenue — 9,862 12,253 32,222 Total revenue — 110,825 213,329 334,710 Operating expenses: Cost of services — 28,567 38,144 95,242 Cost of goods sold — 9,600 11,964 31,565 Selling, general and administrative — 7,696 17,514 25,931 Severance expense — — 465 — Depreciation and amortization — 15,077 — 62,804 Total operating expenses — 60,940 68,087 215,542 Operating income — 49,885 145,242 119,168 Other (expense) income: Debt extinguishment (11,032) — (11,032) — Interest expense and other, net (733) (4,508) (9,434) (15,477) Gain on sale of disposition of Wireless assets and operations 1,224,815 — 1,224,815 — Income before income taxes 1,213,050 45,377 1,349,591 103,691 Income tax expense 326,724 11,868 363,227 27,269 Income from discontinued operations, net of tax $ 886,326 $ 33,509 $ 986,364 $ 76,422 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Amortized and Capitalized Contract Cost | Below is a summary of the Broadband segment's capitalized contract acquisition and fulfillment costs: Three Months Ended Nine Months Ended (in thousands) 2021 2020 2021 2020 Beginning Balance $ 15,290 $ 12,780 $ 14,669 $ 11,005 Contract payments 1,532 2,195 4,747 6,128 Contract amortization (724) (1,013) (3,318) (3,171) Ending Balance $ 16,098 $ 13,962 $ 16,098 $ 13,962 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Other Investments | Investments consist of the following: (in thousands) September 30, December 31, SERP Investments at fair value $ 2,165 $ 2,687 Cost method investments 10,905 10,536 Equity method investments 340 546 Total investments $ 13,410 $ 13,769 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following: ($ in thousands) Estimated Useful Lives September 30, December 31, Land $ 3,771 $ 3,909 Land improvements 10 years 3,141 2,910 Buildings and structures 10 - 40 years 94,539 91,335 Cable and fiber 15 - 30 years 428,055 390,209 Equipment and software 4 - 8 years 374,019 331,047 Plant in service 903,525 819,410 Plant under construction 84,731 49,417 Total property, plant and equipment 988,256 868,827 Less: accumulated amortization and depreciation 462,457 428,400 Property, plant and equipment, net $ 525,799 $ 440,427 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Resulting from Acquisition | Other intangible assets consisted of the following: September 30, 2021 December 31, 2020 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Goodwill - Broadband $ 3,244 $ — $ 3,244 $ 3,244 $ — $ 3,244 Indefinite-lived intangibles: Cable franchise rights $ 64,334 $ — $ 64,334 $ 64,334 $ — $ 64,334 FCC spectrum licenses 29,958 — 29,958 29,958 — 29,958 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 94,433 — 94,433 94,433 — 94,433 Finite-lived intangibles: FCC spectrum licenses 6,811 (594) 6,217 6,811 (340) 6,471 Subscriber relationships 28,425 (26,338) 2,087 28,425 (26,000) 2,425 Other intangibles 463 (298) 165 463 (277) 186 Total finite-lived intangibles 35,699 (27,230) 8,469 35,699 (26,617) 9,082 Total goodwill and intangible assets $ 133,376 $ (27,230) $ 106,146 $ 133,376 $ (26,617) $ 106,759 |
Schedule of Finite-Lived Intangible Assets | Other intangible assets consisted of the following: September 30, 2021 December 31, 2020 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Goodwill - Broadband $ 3,244 $ — $ 3,244 $ 3,244 $ — $ 3,244 Indefinite-lived intangibles: Cable franchise rights $ 64,334 $ — $ 64,334 $ 64,334 $ — $ 64,334 FCC spectrum licenses 29,958 — 29,958 29,958 — 29,958 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 94,433 — 94,433 94,433 — 94,433 Finite-lived intangibles: FCC spectrum licenses 6,811 (594) 6,217 6,811 (340) 6,471 Subscriber relationships 28,425 (26,338) 2,087 28,425 (26,000) 2,425 Other intangibles 463 (298) 165 463 (277) 186 Total finite-lived intangibles 35,699 (27,230) 8,469 35,699 (26,617) 9,082 Total goodwill and intangible assets $ 133,376 $ (27,230) $ 106,146 $ 133,376 $ (26,617) $ 106,759 |
Other Assets and Accrued Liab_2
Other Assets and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Assets | Prepaid expenses and other, classified as current assets, included the following: (in thousands) September 30, December 31, Prepaid maintenance expenses $ 8,665 $ 4,018 Broadband contract acquisition and fulfillment costs 4,426 4,417 SERP investments 862 — Other 2,510 1,196 Prepaid expenses and other $ 16,463 $ 9,631 |
Schedule of Other Assets, Noncurrent | Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) September 30, December 31, Broadband contract acquisition and fulfillment costs $ 11,672 $ 10,252 Prepaid expenses and other 5,078 1,398 Deferred charges and other assets $ 16,750 $ 11,650 |
Summary of Accrued Liabilities and Other | Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) September 30, December 31, Interest rate swaps $ — $ 4,048 Accrued programming costs 3,180 2,868 Sales and property taxes payable 1,769 1,072 Restructuring accrual 2,388 — Other current liabilities 6,253 5,881 Accrued liabilities and other $ 13,590 $ 13,869 |
Other Noncurrent Liabilities | Other liabilities, classified as long-term liabilities, included the following: (in thousands) September 30, December 31, Noncurrent portion of deferred lease revenue $ 19,066 $ 18,687 FCC spectrum license obligations 3,817 3,845 Noncurrent portion of financing leases 1,575 1,492 Other 572 881 Other liabilities $ 25,030 $ 24,905 |
Restructuring and Related Costs | The following table identifies the activity that has occurred as a result of the plan: (in thousands) Three Months Ended Nine Months Ended Beginning Balance June 30, 2021 and January 1, 2021, respectively $ 608 $ — Expense (1) 3,213 4,340 Payments (2) (1,433) (1,952) Ending Balance - September 30, 2021 $ 2,388 $ 2,388 _______________________________________________________ (1) For the three and nine months ended September 30, 2021, respectively, approximately $2.2 million and $2.5 million of expense was recognized within discontinued operations. (2) For the three and nine months ended September 30, 2021, respectively, approximately $1.1 million and $1.2 million of payments were attributable to discontinued operations. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Expected Maturity of Lease Liabilities, Operating | The following table summarizes the expected maturity of lease liabilities at September 30, 2021: (in thousands) Operating Leases Finance Leases Total 2021 $ 1,487 $ 63 $ 1,550 2022 5,562 175 5,737 2023 5,014 177 5,191 2024 4,661 179 4,840 2025 4,457 181 4,638 2026 and thereafter 68,634 1,551 70,185 Total lease payments 89,815 2,326 92,141 Less: Interest 35,381 654 36,035 Present value of lease liabilities $ 54,434 $ 1,672 $ 56,106 |
Expected Maturity of Lease Liabilities, Financing | The following table summarizes the expected maturity of lease liabilities at September 30, 2021: (in thousands) Operating Leases Finance Leases Total 2021 $ 1,487 $ 63 $ 1,550 2022 5,562 175 5,737 2023 5,014 177 5,191 2024 4,661 179 4,840 2025 4,457 181 4,638 2026 and thereafter 68,634 1,551 70,185 Total lease payments 89,815 2,326 92,141 Less: Interest 35,381 654 36,035 Present value of lease liabilities $ 54,434 $ 1,672 $ 56,106 |
Minimum Rental Receipts Under Lease Agreement Lessor, Operating Leases | Below is a summary of our minimum rental receipts under the lease agreements in place at September 30, 2021: (in thousands) Operating Leases 2021 $ 3,474 2022 13,749 2023 12,363 2024 11,614 2025 10,659 2026 and thereafter 36,957 Total $ 88,816 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below summarizes changes in accumulated other comprehensive income (loss) by component, including the reclassification from accumulated other comprehensive income (loss) into earnings following the swap termination: (in thousands) Gains (Losses) on Income Tax Accumulated Balance as of December 31, 2020 $ (4,048) $ (658) $ (4,706) Amounts reclassified from accumulated other comprehensive income (loss) to earnings as a result of swap termination 4,048 658 4,706 Net current period other comprehensive (loss) income 4,048 658 4,706 Balance as of September 30, 2021 $ — $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Income Taxes | Three Months Ended Nine Months Ended (in thousands) 2021 2020 2021 2020 Expected tax expense (benefit) at federal statutory $ 275 $ 326 $ 1,958 $ 72 State income taxes, net of federal tax effect 82 70 551 15 Revaluation of deferred tax liabilities (7,675) — (6,629) — Stranded tax effects reclassified from other comprehensive income 1,620 — 1,620 — Excess tax benefit from share based compensation and other expense, net 276 (255) 185 (771) Income tax (benefit) expense $ (5,422) $ 141 $ (2,315) $ (684) |
Earnings per Share and Divide_2
Earnings per Share and Dividends (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | 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) 2021 2020 2021 2020 Calculation of net income per share: Income from continuing operations $ 6,732 $ 1,412 $ 11,637 $ 1,026 Total income from discontinued operations, net of tax $ 886,326 $ 33,509 $ 986,364 $ 76,422 Net income $ 893,058 $ 34,921 $ 998,001 $ 77,448 Basic weighted average shares outstanding 49,984 49,911 49,984 49,889 Basic net income per share - continuing operations $ 0.13 $ 0.03 $ 0.23 $ 0.02 Basic net income per share - discontinued operations $ 17.73 $ 0.67 $ 19.73 $ 1.53 Basic net income per share $ 17.86 $ 0.70 $ 19.96 $ 1.55 Effect of stock-based compensation awards outstanding: Basic weighted average shares outstanding 49,984 49,911 49,984 49,889 Effect from dilutive shares and options outstanding 136 194 152 160 Diluted weighted average shares outstanding 50,120 50,105 50,136 50,049 Diluted net income per share - continuing operations $ 0.13 $ 0.03 $ 0.23 $ 0.02 Diluted net income per share - discontinued operations $ 17.68 $ 0.67 $ 19.67 $ 1.53 Diluted net income per share $ 17.81 $ 0.70 $ 19.90 $ 1.55 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Selected Financial Data for Segments | The tables below reflect the results of operations of the Company's reportable segments in continuing operations, consistent with internal reporting used by the Company. Three Months Ended September 30, 2021: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 44,783 $ — $ — $ 44,783 Commercial Fiber 9,059 — — 9,059 RLEC & Other 3,972 — — 3,972 Tower lease — 4,356 — 4,356 Service revenue and other 57,814 4,356 — 62,170 Revenue for service provided to the discontinued Wireless operations 99 93 (118) 74 Total revenue 57,913 4,449 (118) 62,244 Operating expenses Cost of services 24,012 1,504 (90) 25,426 Selling, general and administrative 11,898 314 8,026 20,238 Restructuring expense 71 — 1,089 1,160 Depreciation and amortization 12,211 468 1,569 14,248 Total operating expenses 48,192 2,286 10,594 61,072 Operating income (loss) $ 9,721 $ 2,163 $ (10,712) $ 1,172 Three Months Ended September 30, 2020: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 39,477 $ — $ — $ 39,477 Commercial Fiber 5,280 — — 5,280 RLEC & Other 3,853 — — 3,853 Tower lease — 1,864 — 1,864 Service revenue and other 48,610 1,864 — 50,474 Revenue for service provided to the discontinued Wireless operations 2,100 2,637 (38) 4,699 Total revenue 50,710 4,501 (38) 55,173 Operating expenses Cost of services 21,326 1,283 60 22,669 Selling, general and administrative 9,792 330 9,917 20,039 Depreciation and amortization 10,106 467 1,422 11,995 Total operating expenses 41,224 2,080 11,399 54,703 Operating income (loss) $ 9,486 $ 2,421 $ (11,437) $ 470 Nine Months Ended September 30, 2021: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 131,702 $ — $ — $ 131,702 Commercial Fiber 21,975 — — 21,975 RLEC & Other 11,208 — — 11,208 Tower lease — 8,525 — 8,525 Service revenue and other 164,885 8,525 — 173,410 Revenue for service provided to the discontinued Wireless operations 4,409 5,203 (387) 9,225 Total revenue 169,294 13,728 (387) 182,635 Operating expenses Cost of services 69,275 4,070 (301) 73,044 Selling, general and administrative 35,429 886 24,396 60,711 Restructuring expense 203 — 1,618 1,821 Depreciation and amortization 35,747 1,398 3,668 40,813 Total operating expenses 140,654 6,354 29,381 176,389 Operating income (loss) $ 28,640 $ 7,374 $ (29,768) $ 6,246 Nine Months Ended September 30, 2020: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 114,170 $ — $ — $ 114,170 Commercial Fiber 17,762 — — 17,762 RLEC & Other 11,880 — — 11,880 Tower lease — 5,490 — 5,490 Service revenue and other 143,812 5,490 — 149,302 Revenue for service provided to the discontinued Wireless operations 6,818 7,000 (477) 13,341 Total revenue 150,630 12,490 (477) 162,643 Operating expenses Cost of services 61,572 3,537 58 65,167 Selling, general and administrative 28,960 1,095 34,172 64,227 Depreciation and amortization 30,448 1,414 4,148 36,010 Total operating expenses 120,980 6,046 38,378 165,404 Operating income (loss) $ 29,650 $ 6,444 $ (38,855) $ (2,761) |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of the total of the reportable segments’ operating income to consolidated income before taxes is as follows: Three Months Ended Nine Months Ended (in thousands) 2021 2020 2021 2020 Total consolidated operating income (loss) $ 1,172 $ 470 $ 6,246 $ (2,761) Other income, net 138 1,083 3,076 3,103 Income (loss) from continuing operations before income taxes $ 1,310 $ 1,553 $ 9,322 $ 342 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | Aug. 26, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jul. 01, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Waived management fees | $ 60,000 | |||||
Incremental selling costs | $ 21,000 | |||||
Interest expense | 2,600 | |||||
Discontinued Operations, Held-for-sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale proceeds | $ 1,940,000 | |||||
Debt extinguishment | $ (11,032) | $ 0 | $ (11,032) | $ 0 | ||
Affiliated Entity | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Value of business percentage | 90.00% |
Discontinued Operations - Carry
Discontinued Operations - Carrying Amounts of the Major Classes of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Current assets held for sale | $ 0 | $ 1,133,294 |
LIABILITIES | ||
Current liabilities held for sale | $ 0 | 452,202 |
Discontinued Operations, Held-for-sale | ||
ASSETS | ||
Inventory | 5,746 | |
Prepaid expenses and other | 47,003 | |
Property, plant and equipment, net | 299,647 | |
Intangible assets, net | 176,459 | |
Goodwill | 146,383 | |
Operating lease right-of-use assets | 421,586 | |
Deferred charges and other assets | 36,470 | |
Current assets held for sale | 1,133,294 | |
LIABILITIES | ||
Current operating lease liabilities | 409,887 | |
Accrued liabilities and other | 8,770 | |
Asset retirement obligations | 33,545 | |
Current liabilities held for sale | $ 452,202 |
Discontinued Operations - Incom
Discontinued Operations - Income (Loss) From Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Discontinued Operations, Held-for-sale | ||||
Revenue: | ||||
Revenue | $ 0 | $ 110,825 | $ 213,329 | $ 334,710 |
Operating expenses | ||||
Selling, general and administrative | 0 | 7,696 | 17,514 | 25,931 |
Severance expense | 0 | 0 | 465 | 0 |
Depreciation and amortization | 0 | 15,077 | 0 | 62,804 |
Total operating expenses | 0 | 60,940 | 68,087 | 215,542 |
Operating income | 0 | 49,885 | 145,242 | 119,168 |
Other (expense) income: | ||||
Debt extinguishment | (11,032) | 0 | (11,032) | 0 |
Interest expense and other, net | (733) | (4,508) | (9,434) | (15,477) |
Income before income taxes | 1,213,050 | 45,377 | 1,349,591 | 103,691 |
Income tax expense | 326,724 | 11,868 | 363,227 | 27,269 |
Income from discontinued operations, net of tax | 886,326 | 33,509 | 986,364 | 76,422 |
Discontinued Operations, Held-for-sale | Service revenue and other | ||||
Revenue: | ||||
Revenue | 0 | 100,963 | 201,076 | 302,488 |
Discontinued Operations, Held-for-sale | Equipment revenue | ||||
Revenue: | ||||
Revenue | 0 | 9,862 | 12,253 | 32,222 |
Discontinued Operations, Held-for-sale | Cost of services | ||||
Operating expenses | ||||
Cost of services and cost of goods sold | 0 | 28,567 | 38,144 | 95,242 |
Discontinued Operations, Held-for-sale | Cost of goods sold | ||||
Operating expenses | ||||
Cost of services and cost of goods sold | 0 | 9,600 | 11,964 | 31,565 |
Discontinued Operations, Disposed of by Sale | ||||
Other (expense) income: | ||||
Gain on sale of disposition of Wireless assets and operations | $ 1,224,815 | $ 0 | $ 1,224,815 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Weighted average customer life | 6 years |
Remaining performance obligations | $ 3.8 |
Revenue remaining performance obligation, per year | $ 0.2 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Revenue from Contracts with Customers - Amortized and Capitalized Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Capitalized Contract Cost [Roll Forward] | ||||
Beginning Balance | $ 15,290 | $ 12,780 | $ 14,669 | $ 11,005 |
Contract payments | 1,532 | 2,195 | 4,747 | 6,128 |
Contract amortization | (724) | (1,013) | (3,318) | (3,171) |
Ending Balance | $ 16,098 | $ 13,962 | $ 16,098 | $ 13,962 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Investments [Abstract] | ||
SERP Investments at fair value | $ 2,165 | $ 2,687 |
Cost method investments | 10,905 | 10,536 |
Equity method investments | 340 | 546 |
Total investments | $ 13,410 | $ 13,769 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
SERP investments | $ 862 | $ 862 | $ 0 | ||
SERP Investments at fair value | 2,165 | 2,165 | 2,687 | ||
CoBank | |||||
Schedule of Equity Method Investments [Line Items] | |||||
SERP Investments at fair value | 10,100 | 10,100 | $ 9,800 | ||
Other nonoperating income (expense) | $ 500 | $ 1,000 | $ 1,500 | $ 3,000 | |
Percentage of patronage credit paid in cash | 75.00% | 75.00% | |||
Percentage of patronage credit paid in share | 25.00% | 25.00% | |||
Valley Network Partnership | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest, percentage | 20.00% | 20.00% | |||
Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenue from related parties | $ 200 | $ 500 | 700 | ||
Related party costs | $ 30 | $ 700 | $ 1,100 | $ 2,200 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 988,256 | $ 868,827 |
Less: accumulated amortization and depreciation | 462,457 | 428,400 |
Property, plant and equipment, net | 525,799 | 440,427 |
Land | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 3,771 | 3,909 |
Land improvements | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 10 years | |
Total property, plant and equipment | $ 3,141 | 2,910 |
Buildings and structures | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 94,539 | 91,335 |
Buildings and structures | Minimum | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 10 years | |
Buildings and structures | Maximum | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 40 years | |
Cable and fiber | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 428,055 | 390,209 |
Cable and fiber | Minimum | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 15 years | |
Cable and fiber | Maximum | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 30 years | |
Equipment and software | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 374,019 | 331,047 |
Equipment and software | Minimum | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 4 years | |
Equipment and software | Maximum | ||
Property, plant and equipment [Abstract] | ||
Estimated Useful Lives | 8 years | |
Plant in service | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 903,525 | 819,410 |
Plant under construction | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 84,731 | $ 49,417 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | $ 94,433 | $ 94,433 |
Gross carrying amount | 35,699 | 35,699 |
Accumulated amortization and other | (27,230) | (26,617) |
Total | 8,469 | 9,082 |
Total intangible assets, gross carrying amount | 133,376 | 133,376 |
Intangible assets, net | 106,146 | 106,759 |
Broadband | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, gross | 3,244 | 3,244 |
Goodwill | 3,244 | 3,244 |
FCC spectrum licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 6,811 | 6,811 |
Accumulated amortization and other | (594) | (340) |
Total | 6,217 | 6,471 |
Subscriber relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 28,425 | 28,425 |
Accumulated amortization and other | (26,338) | (26,000) |
Total | 2,087 | 2,425 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 463 | 463 |
Accumulated amortization and other | (298) | (277) |
Total | 165 | 186 |
Cable franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | 64,334 | 64,334 |
FCC spectrum licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | 29,958 | 29,958 |
Railroad crossing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | $ 141 | $ 141 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | $ 0.2 | $ 0.2 | $ 0.6 | $ 0.5 | |
FCC spectrum licenses | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets acquired | $ 16.2 |
Other Assets and Accrued Liab_3
Other Assets and Accrued Liabilities - Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Prepaid maintenance expenses | $ 8,665 | $ 4,018 |
Broadband contract acquisition and fulfillment costs | 4,426 | 4,417 |
SERP investments | 862 | 0 |
Other | 2,510 | 1,196 |
Prepaid expenses and other | $ 16,463 | $ 9,631 |
Other Assets and Accrued Liab_4
Other Assets and Accrued Liabilities - Long-Term Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Broadband contract acquisition and fulfillment costs | $ 11,672 | $ 10,252 |
Prepaid expenses and other | 5,078 | 1,398 |
Deferred charges and other assets | $ 16,750 | $ 11,650 |
Other Assets and Accrued Liab_5
Other Assets and Accrued Liabilities - Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Interest rate swaps | $ 0 | $ 4,048 |
Accrued programming costs | 3,180 | 2,868 |
Sales and property taxes payable | 1,769 | 1,072 |
Restructuring accrual | 2,388 | 0 |
Other current liabilities | 6,253 | 5,881 |
Accrued liabilities and other | $ 13,590 | $ 13,869 |
Other Assets and Accrued Liab_6
Other Assets and Accrued Liabilities - Long Term Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Noncurrent portion of deferred lease revenue | $ 19,066 | $ 18,687 |
FCC spectrum license obligations | 3,817 | 3,845 |
Noncurrent portion of financing leases | 1,575 | 1,492 |
Other | 572 | 881 |
Other liabilities | $ 25,030 | $ 24,905 |
Other Assets and Accrued Liab_7
Other Assets and Accrued Liabilities - Restructuring Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Expense | $ 1,160 | $ 0 | $ 1,821 | $ 0 |
Workforce Reduction Program | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 608 | 0 | ||
Expense | 3,213 | 4,340 | ||
Payments | (1,433) | (1,952) | ||
Ending balance | 2,388 | 2,388 | ||
Workforce Reduction Program | Discontinued Operations | ||||
Restructuring Reserve [Roll Forward] | ||||
Expense | 2,200 | 2,500 | ||
Payments | $ (1,100) | $ (1,200) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term | 20 years 2 months 12 days | |
Operating lease, weighted average discount rate, percent | 4.40% | |
Finance lease, weighted average remaining lease term | 13 years 6 months | |
Finance lease, weighted average discount rate, percent | 5.20% | |
Operating lease, cost | $ 2.3 | $ 2.3 |
Finance lease, cost | 0.1 | 0.1 |
Operating lease, payments | 1.4 | 1.2 |
Right-of-use asset obtained in exchange for operating lease liability | 2.2 | 2.4 |
Sublease income | $ 2.4 | $ 2.7 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liability - Lessee (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Operating Leases | |
2021 | $ 1,487 |
2022 | 5,562 |
2023 | 5,014 |
2024 | 4,661 |
2025 | 4,457 |
2026 and thereafter | 68,634 |
Total lease payments | 89,815 |
Less: Interest | 35,381 |
Present value of lease liabilities | 54,434 |
Finance Leases | |
2021 | 63 |
2022 | 175 |
2023 | 177 |
2024 | 179 |
2025 | 181 |
2026 and thereafter | 1,551 |
Total lease payments | 2,326 |
Less: Interest | 654 |
Present value of lease liabilities | 1,672 |
Total | |
2021 | 1,550 |
2022 | 5,737 |
2023 | 5,191 |
2024 | 4,840 |
2025 | 4,638 |
2026 and thereafter | 70,185 |
Total lease payments | 92,141 |
Less: Interest | 36,035 |
Present value of lease liabilities | $ 56,106 |
Leases - Maturity of Lease Li_2
Leases - Maturity of Lease Liability - Lessor (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 3,474 |
2022 | 13,749 |
2023 | 12,363 |
2024 | 11,614 |
2025 | 10,659 |
2026 and thereafter | 36,957 |
Total | $ 88,816 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jul. 01, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
Debt Instrument [Line Items] | |||
Interest payments | $ 10,400,000 | $ 14,500,000 | |
Repayments of debt | $ 681,000,000 | ||
New Credit Agreement | |||
Debt Instrument [Line Items] | |||
Total net leverage ratio | 4.25 | ||
Debt service coverage ratio | 2 | ||
New Credit Agreement | Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 400,000,000 | ||
New Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.00% | ||
Term loan A-1 | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 150,000,000 | ||
Term of credit facility | 5 years | ||
Term loan A-1 | London Interbank Offered Rate (LIBOR) | Minimum | Variable Rate Component One | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Term loan A-1 | London Interbank Offered Rate (LIBOR) | Maximum | Variable Rate Component One | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.75% | ||
Term loan A-1 | Base Rate | Minimum | Variable Rate Component Two | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Term loan A-1 | Base Rate | Maximum | Variable Rate Component Two | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Term loan A-2 | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 150,000,000 | ||
Term of credit facility | 7 years | ||
Term loan A-2 | London Interbank Offered Rate (LIBOR) | Minimum | Variable Rate Component One | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Term loan A-2 | London Interbank Offered Rate (LIBOR) | Maximum | Variable Rate Component One | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
Term loan A-2 | Base Rate | Minimum | Variable Rate Component Two | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Term loan A-2 | Base Rate | Maximum | Variable Rate Component Two | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Term Loans | |||
Debt Instrument [Line Items] | |||
Additional borrowing capacity available upon request | $ 75,000,000 | ||
Total net leverage ratio | 4 | ||
Revolving Credit Facility | Minimum | Variable Rate Component Three | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.20% | ||
Revolving Credit Facility | Maximum | Variable Rate Component Three | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.375% | ||
Revolving Credit Facility | New Credit Agreement | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 100,000,000 | ||
Term of credit facility | 5 years |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Payments for derivative instruments | $ 3 |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax (Expense) Benefit | ||||
Balance as of December 31, 2020 | $ (658) | |||
Net current period other comprehensive (loss) income | 658 | |||
Balance as of September 30, 2021 | $ 0 | 0 | ||
Accumulated Other Comprehensive Income (Loss), net of taxes | ||||
Balance as of December 31, 2020 | (4,706) | |||
Net current period other comprehensive (loss) income | 3,620 | $ 538 | 4,706 | $ (5,509) |
Balance as of September 30, 2021 | 0 | 0 | ||
Interest Expense | ||||
Income Tax (Expense) Benefit | ||||
Amounts reclassified from accumulated other comprehensive income (loss) to earnings as a result of swap termination | 658 | |||
Accumulated Other Comprehensive Income (Loss), net of taxes | ||||
Amounts reclassified from accumulated other comprehensive income (loss) to earnings as a result of swap termination | 4,706 | |||
Gains (Losses) on Cash Flow Hedges | ||||
Gains (Losses) on Cash Flow Hedges | ||||
Balance as of December 31, 2020 | (4,048) | |||
Net current period other comprehensive (loss) income | 4,048 | |||
Balance as of September 30, 2021 | $ 0 | 0 | ||
Gains (Losses) on Cash Flow Hedges | Interest Expense | ||||
Gains (Losses) on Cash Flow Hedges | ||||
Amounts reclassified from accumulated other comprehensive income (loss) to earnings as a result of swap termination | $ 4,048 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Expected tax expense (benefit) at federal statutory | $ 275 | $ 326 | $ 1,958 | $ 72 |
State income taxes, net of federal tax effect | 82 | 70 | 551 | 15 |
Revaluation of deferred tax liabilities | (7,675) | 0 | (6,629) | 0 |
Stranded tax effects reclassified from other comprehensive income | 1,620 | 0 | 1,620 | 0 |
Excess tax benefit from share based compensation and other expense, net | 276 | (255) | 185 | (771) |
Income tax (benefit) expense | $ (5,422) | $ 141 | $ (2,315) | $ (684) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Proceeds from income tax refunds | $ 24,900 | $ 5,400 | ||
Revaluation of deferred tax liabilities | $ (7,675) | $ 0 | (6,629) | $ 0 |
Current tax liability | $ 428,000 | $ 428,000 |
Earnings per Share and Divide_3
Earnings per Share and Dividends - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Income from continuing operations | $ 6,732 | $ 1,412 | $ 11,637 | $ 1,026 |
Total income from discontinued operations, net of tax | 886,326 | 33,509 | 986,364 | 76,422 |
Net income | $ 893,058 | $ 34,921 | $ 998,001 | $ 77,448 |
Basic weighted average shares outstanding (in shares) | 49,984 | 49,911 | 49,984 | 49,889 |
Basic - Income from continuing operations (in dollars per share) | $ 0.13 | $ 0.03 | $ 0.23 | $ 0.02 |
Basic - Income from discontinued operations, net of tax (in dollars per share) | 17.73 | 0.67 | 19.73 | 1.53 |
Basic net income per share (in dollars per share) | $ 17.86 | $ 0.70 | $ 19.96 | $ 1.55 |
Effect from dilutive shares and options outstanding (in shares) | 136 | 194 | 152 | 160 |
Diluted weighted average shares outstanding (in shares) | 50,120 | 50,105 | 50,136 | 50,049 |
Diluted - Income from continuing operations (in dollars per share) | $ 0.13 | $ 0.03 | $ 0.23 | $ 0.02 |
Diluted - Income from discontinued operations, net of tax (in dollars per share) | 17.68 | 0.67 | 19.67 | 1.53 |
Diluted net income per share (in dollars per share) | $ 17.81 | $ 0.70 | $ 19.90 | $ 1.55 |
Earnings per Share and Divide_4
Earnings per Share and Dividends - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 02, 2021 | Jul. 02, 2021 | Sep. 30, 2021 | Sep. 30, 2021 |
Share-based Payment Arrangement [Abstract] | ||||
Cash dividend declared per share (in dollars per share) | $ 18.75 | $ 18.75 | $ 18.75 | |
Dividends payout | $ 937 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) | Sep. 30, 2021USD ($) |
FCC spectrum licenses | |
Other Commitments [Line Items] | |
Other commitment, annual payments | $ 108,000 |
Segment Reporting - Selected Fi
Segment Reporting - Selected Financial Data for Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
External revenue | ||||
Service revenue and other | $ 62,244 | $ 55,173 | $ 182,635 | $ 162,643 |
Operating expenses | ||||
Cost of services | 25,426 | 22,669 | 73,044 | 65,167 |
Selling, general and administrative | 20,238 | 20,039 | 60,711 | 64,227 |
Restructuring expense | 1,160 | 0 | 1,821 | 0 |
Depreciation and amortization | 14,248 | 11,995 | 40,813 | 36,010 |
Operating income (loss) | 1,172 | 470 | 6,246 | (2,761) |
Operating Segments | ||||
Operating expenses | ||||
Selling, general and administrative | 20,238 | 20,039 | 60,711 | 64,227 |
Restructuring expense | 1,160 | 1,821 | ||
Depreciation and amortization | 14,248 | 11,995 | 40,813 | 36,010 |
Total operating expenses | 61,072 | 54,703 | 176,389 | 165,404 |
Operating income (loss) | 1,172 | 470 | 6,246 | (2,761) |
Operating Segments | Broadband | ||||
External revenue | ||||
Service revenue and other | 57,913 | 50,710 | 169,294 | 150,630 |
Operating expenses | ||||
Selling, general and administrative | 11,898 | 9,792 | 35,429 | 28,960 |
Restructuring expense | 71 | 203 | ||
Depreciation and amortization | 12,211 | 10,106 | 35,747 | 30,448 |
Total operating expenses | 48,192 | 41,224 | 140,654 | 120,980 |
Operating income (loss) | 9,721 | 9,486 | 28,640 | 29,650 |
Operating Segments | Tower | ||||
External revenue | ||||
Service revenue and other | 4,449 | 4,501 | 13,728 | 12,490 |
Operating expenses | ||||
Selling, general and administrative | 314 | 330 | 886 | 1,095 |
Restructuring expense | 0 | 0 | ||
Depreciation and amortization | 468 | 467 | 1,398 | 1,414 |
Total operating expenses | 2,286 | 2,080 | 6,354 | 6,046 |
Operating income (loss) | 2,163 | 2,421 | 7,374 | 6,444 |
Intersegment Eliminations | ||||
External revenue | ||||
Service revenue and other | 74 | 4,699 | 9,225 | 13,341 |
Intersegment Eliminations | Broadband | ||||
External revenue | ||||
Service revenue and other | 99 | 2,100 | 4,409 | 6,818 |
Intersegment Eliminations | Tower | ||||
External revenue | ||||
Service revenue and other | 93 | 2,637 | 5,203 | 7,000 |
Intersegment Eliminations | Corporate & Eliminations | ||||
External revenue | ||||
Service revenue and other | (118) | (38) | (387) | (477) |
Corporate, Non-Segment | ||||
Operating expenses | ||||
Selling, general and administrative | 8,026 | 9,917 | 24,396 | 34,172 |
Restructuring expense | 1,089 | 1,618 | ||
Depreciation and amortization | 1,569 | 1,422 | 3,668 | 4,148 |
Total operating expenses | 10,594 | 11,399 | 29,381 | 38,378 |
Operating income (loss) | (10,712) | (11,437) | (29,768) | (38,855) |
Residential & SMB | Operating Segments | ||||
External revenue | ||||
Service revenue and other | 44,783 | 39,477 | 131,702 | 114,170 |
Residential & SMB | Operating Segments | Broadband | ||||
External revenue | ||||
Service revenue and other | 44,783 | 39,477 | 131,702 | 114,170 |
Residential & SMB | Operating Segments | Tower | ||||
External revenue | ||||
Service revenue and other | 0 | 0 | 0 | 0 |
Commercial Fiber | Operating Segments | ||||
External revenue | ||||
Service revenue and other | 9,059 | 5,280 | 21,975 | 17,762 |
Commercial Fiber | Operating Segments | Broadband | ||||
External revenue | ||||
Service revenue and other | 9,059 | 5,280 | 21,975 | 17,762 |
Commercial Fiber | Operating Segments | Tower | ||||
External revenue | ||||
Service revenue and other | 0 | 0 | 0 | 0 |
RLEC & Other | Operating Segments | ||||
External revenue | ||||
Service revenue and other | 3,972 | 3,853 | 11,208 | 11,880 |
RLEC & Other | Operating Segments | Broadband | ||||
External revenue | ||||
Service revenue and other | 3,972 | 3,853 | 11,208 | 11,880 |
RLEC & Other | Operating Segments | Tower | ||||
External revenue | ||||
Service revenue and other | 0 | 0 | 0 | 0 |
Tower lease | Operating Segments | ||||
External revenue | ||||
Service revenue and other | 4,356 | 1,864 | 8,525 | 5,490 |
Tower lease | Operating Segments | Broadband | ||||
External revenue | ||||
Service revenue and other | 0 | 0 | 0 | 0 |
Tower lease | Operating Segments | Tower | ||||
External revenue | ||||
Service revenue and other | 4,356 | 1,864 | 8,525 | 5,490 |
Service revenue and other | Operating Segments | ||||
External revenue | ||||
Service revenue and other | 62,170 | 50,474 | 173,410 | 149,302 |
Service revenue and other | Operating Segments | Broadband | ||||
External revenue | ||||
Service revenue and other | 57,814 | 48,610 | 164,885 | 143,812 |
Service revenue and other | Operating Segments | Tower | ||||
External revenue | ||||
Service revenue and other | 4,356 | 1,864 | 8,525 | 5,490 |
Cost of services | Operating Segments | ||||
Operating expenses | ||||
Cost of services | 25,426 | 22,669 | 73,044 | 65,167 |
Cost of services | Operating Segments | Broadband | ||||
Operating expenses | ||||
Cost of services | 24,012 | 21,326 | 69,275 | 61,572 |
Cost of services | Operating Segments | Tower | ||||
Operating expenses | ||||
Cost of services | 1,504 | 1,283 | 4,070 | 3,537 |
Cost of services | Corporate, Non-Segment | ||||
Operating expenses | ||||
Cost of services | $ (90) | $ 60 | $ (301) | $ 58 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | ||||
Operating income (loss) | $ 1,172 | $ 470 | $ 6,246 | $ (2,761) |
Other income, net | 138 | 1,083 | 3,076 | 3,103 |
Income (loss) from continuing operations before income taxes | $ 1,310 | $ 1,553 | $ 9,322 | $ 342 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 26, 2021 | Sep. 30, 2021 |
Ntelos Holding, Corp | Ntelos Pension Plan | ||
Subsequent Event [Line Items] | ||
Benefit obligations, at acquisition | $ 6.2 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Dividends payable (in dollars per share) | $ 0.07 |