Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 50,048,651 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.7 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to its 2022 annual meeting of shareholders (the “2022 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2022 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Entity Central Index Key | 0000354963 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | McLean, Virginia |
Auditor Firm ID | 185 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 84,344 | $ 195,397 |
Accounts receivable, net of allowance for doubtful accounts of $352 and $614, respectively | 22,005 | 70,393 |
Income taxes receivable | 30,188 | 0 |
Prepaid expenses and other | 29,830 | 7,522 |
Current assets held for sale | 0 | 1,133,294 |
Total current assets | 166,367 | 1,406,606 |
Investments | 13,661 | 13,769 |
Property, plant and equipment, net | 554,162 | 440,427 |
Goodwill and Intangible assets, net | 89,831 | 106,759 |
Operating lease right-of-use assets | 56,414 | 50,387 |
Deferred charges and other assets | 10,298 | 6,448 |
Total assets | 890,733 | 2,024,396 |
Current liabilities: | ||
Current maturities of long-term debt, net of unamortized loan fees | 0 | 688,463 |
Accounts payable | 28,542 | 19,599 |
Advanced billings and customer deposits | 11,128 | 8,594 |
Accrued compensation | 9,653 | 16,413 |
Income taxes payable | 0 | 6,951 |
Current operating lease liabilities | 3,318 | 1,970 |
Accrued liabilities and other | 14,649 | 13,869 |
Current liabilities held for sale | 0 | 452,202 |
Total current liabilities | 67,290 | 1,208,061 |
Other long-term liabilities: | ||
Deferred income taxes | 86,014 | 148,684 |
Asset retirement obligations | 9,615 | 4,955 |
Benefit plan obligations | 8,216 | 14,645 |
Non-current operating lease liabilities | 51,692 | 46,095 |
Other liabilities | 25,631 | 24,905 |
Total other long-term liabilities | 181,168 | 239,284 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, no par value, authorized 96,000; 49,965 and 49,868 issued and outstanding at December 31, 2021 and 2020, respectively | 0 | 0 |
Additional paid in capital | 49,351 | 47,317 |
Retained earnings | 592,924 | 534,440 |
Accumulated other comprehensive loss, net of taxes | 0 | (4,706) |
Total shareholders’ equity | 642,275 | 577,051 |
Total liabilities and shareholders’ equity | $ 890,733 | $ 2,024,396 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 352 | $ 614 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 96,000,000 | 96,000,000 |
Common stock, shares issued (in shares) | 49,965,000 | 49,868,000 |
Common stock, shares outstanding (in shares) | 49,965,000 | 49,868,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | |||
Service revenue and other | $ 245,239 | $ 220,775 | $ 206,862 |
Operating expenses | |||
Cost of services | 102,299 | 89,657 | 83,572 |
Selling, general and administrative | 82,451 | 85,016 | 77,846 |
Restructuring expense | 1,727 | 0 | 0 |
Impairment expense | 5,986 | 0 | 0 |
Depreciation and amortization | 55,206 | 48,703 | 46,786 |
Total operating expenses | 247,669 | 223,376 | 208,204 |
Operating loss | (2,430) | (2,601) | (1,342) |
Other income, net | 8,665 | 3,187 | 3,280 |
Income before income taxes | 6,235 | 586 | 1,938 |
Income tax (benefit) expense | (1,694) | (990) | 6 |
Income from continuing operations | 7,929 | 1,576 | 1,932 |
Discontinued operations: | |||
Income from discontinued operations, net of tax | 94,667 | 124,097 | 53,568 |
Gain on the sale of discontinued operations, net of tax | 896,235 | 0 | 0 |
Total income from discontinued operations, net of tax | 990,902 | 124,097 | 53,568 |
Net income | 998,831 | 125,673 | 55,500 |
Other comprehensive income: | |||
Net gains (losses) on interest rate swaps, net of tax | 4,706 | (5,014) | (7,972) |
Comprehensive income | $ 1,003,537 | $ 120,659 | $ 47,528 |
Net income per share, basic and diluted: | |||
Basic - Income from continuing operations (in dollars per share) | $ 0.16 | $ 0.03 | $ 0.04 |
Basic - Income from discontinued operations, net of tax (in dollars per share) | 19.81 | 2.49 | 1.07 |
Basic net income per share (in dollars per share) | 19.97 | 2.52 | 1.11 |
Diluted - Income from continuing operations (in dollars per share) | 0.16 | 0.03 | 0.04 |
Diluted - Income from discontinued operations, net of tax (in dollars per share) | 19.76 | 2.48 | 1.07 |
Diluted net income per share (in dollars per share) | $ 19.92 | $ 2.51 | $ 1.11 |
Weighted average shares outstanding, basic (in shares) | 50,026 | 49,901 | 49,811 |
Weighted average shares outstanding, diluted (in shares) | 50,149 | 50,024 | 50,101 |
Cash dividend declared per share (in dollars per share) | $ 18.82 | $ 0.34 | $ 0.29 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Pre-Adjustment | Error Correction | Shares of Common Stock (no par value) | Shares of Common Stock (no par value)Pre-Adjustment | Additional Paid in Capital | Additional Paid in CapitalPre-Adjustment | Retained Earnings | Retained EarningsPre-Adjustment | Retained EarningsError Correction | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Pre-Adjustment |
Beginning balance (in shares) at Dec. 31, 2018 | 49,630,000 | 49,630,000 | ||||||||||
Beginning balance at Dec. 31, 2018 | $ 440,394 | $ 444,232 | $ (3,838) | $ 47,456 | $ 47,456 | $ 384,658 | $ 388,496 | $ (3,838) | $ 8,280 | $ 8,280 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 55,500 | 55,956 | (456) | 55,500 | ||||||||
Net gain on interest rate swaps, net of tax | (7,972) | (7,972) | ||||||||||
Dividends declared | (14,442) | (14,442) | ||||||||||
Dividends reinvested in common stock (in shares) | 14,000 | |||||||||||
Dividends reinvested in common stock | 499 | 499 | ||||||||||
Share repurchases (in shares) | (200,000) | |||||||||||
Share repurchases | (7,231) | (7,231) | ||||||||||
Stock based compensation (in shares) | 184,000 | |||||||||||
Stock based compensation | 4,182 | 4,182 | ||||||||||
Stock options exercised (in shares) | 29,000 | |||||||||||
Stock options exercised | 81 | 81 | ||||||||||
Common stock issued | 34 | 34 | ||||||||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (62,000) | |||||||||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | (2,911) | (2,911) | ||||||||||
Common stock issued to acquire a non-controlling interests of nTelos (in shares) | 76,000 | |||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 49,671,000 | |||||||||||
Ending balance at Dec. 31, 2019 | 468,134 | 42,110 | 425,716 | 308 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 125,673 | $ 126,723 | $ (1,050) | 125,673 | ||||||||
Net gain on interest rate swaps, net of tax | (5,014) | (5,014) | ||||||||||
Dividends declared | (16,950) | (16,950) | ||||||||||
Dividends reinvested in common stock | (2) | (2) | ||||||||||
Stock based compensation (in shares) | 156,000 | |||||||||||
Stock based compensation | 6,833 | 6,833 | ||||||||||
Stock options exercised | 36 | 36 | ||||||||||
Common stock issued (in shares) | 1,000 | |||||||||||
Common stock issued | 31 | 31 | ||||||||||
Annual dividend reinvestment (in shares) | 12,000 | |||||||||||
Annual dividend reinvestment | 526 | 526 | ||||||||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (48,000) | |||||||||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | $ (2,217) | (2,217) | ||||||||||
Common stock issued to acquire a non-controlling interests of nTelos (in shares) | 76,000 | |||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 49,868,000 | 49,868,000 | ||||||||||
Ending balance at Dec. 31, 2020 | $ 577,051 | 47,317 | 534,440 | (4,706) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 998,831 | 998,831 | ||||||||||
Net gain on interest rate swaps, net of tax | 4,706 | 4,706 | ||||||||||
Dividends declared | (940,347) | (940,347) | ||||||||||
Stock based compensation (in shares) | 133,000 | |||||||||||
Stock based compensation | 3,661 | 3,661 | ||||||||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (36,000) | |||||||||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | $ (1,627) | (1,627) | ||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 49,965,000 | 49,965,000 | ||||||||||
Ending balance at Dec. 31, 2021 | $ 642,275 | $ 49,351 | $ 592,924 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 998,831 | $ 125,673 | $ 55,500 |
Income from discontinued operations, net of tax | 990,902 | 124,097 | 53,568 |
Income from continuing operations | 7,929 | 1,576 | 1,932 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 54,389 | 47,964 | 46,313 |
Amortization | 817 | 739 | 473 |
Accretion of asset retirement obligations | 421 | 333 | 410 |
Bad debt expense | 1,028 | 1,220 | 1,743 |
Stock based compensation expense, net of amount capitalized | 3,408 | 5,907 | 3,367 |
Deferred income taxes | 22,263 | 14,906 | 16,681 |
Restructuring expense | 1,727 | 0 | 0 |
Impairment expense | 5,986 | 0 | 0 |
Gain from patronage and investments and other | 481 | (1,311) | (4,769) |
Changes in assets and liabilities: | |||
Accounts receivable | 163 | (7,318) | (74) |
Current income taxes | (25,149) | (15,896) | (16,675) |
Operating lease right-of-use assets | 4,779 | 3,980 | 7,593 |
Other assets | (7,005) | (2,505) | 785 |
Accounts payable | 2,976 | (663) | (8,426) |
Lease liabilities | (4,333) | (3,067) | (4,987) |
Other deferrals and accruals | (6,427) | 7,494 | (2,037) |
Net cash provided by operating activities - continuing operations | 63,453 | 53,359 | 42,329 |
Net cash (used) provided by operating activities - discontinued operations | (314,387) | 249,508 | 216,816 |
Net cash (used) provided by operating activities | (250,934) | 302,867 | 259,145 |
Cash flows from investing activities: | |||
Capital expenditures | (160,101) | (120,450) | (67,048) |
Cash disbursed for acquisitions | 0 | (1,890) | (10,000) |
Cash disbursed for deposit on FCC spectrum leases | 0 | (16,118) | (16,742) |
Proceeds from sale of assets and other | 366 | 370 | 112 |
Net cash used in investing activities - continuing operations | (159,735) | (138,088) | (93,678) |
Net cash provided (used) in investing activities - discontinued operations | 1,944,089 | (17,500) | (71,656) |
Net cash provided (used) in investing activities | 1,784,354 | (155,588) | (165,334) |
Cash flows from financing activities: | |||
Payments for debt issuance costs | (841) | 0 | 0 |
Dividends paid, net of dividends reinvested | (940,256) | (16,424) | (13,943) |
Share repurchases | 0 | 0 | (7,231) |
Taxes paid for equity award issuances | (1,627) | (2,217) | (2,910) |
Payments for financing arrangements and other | (1,193) | (769) | 36 |
Net cash used in financing activities - continuing operations | (943,917) | (19,410) | (24,048) |
Net cash used in financing activities - discontinued operations | (700,556) | (34,123) | (53,198) |
Net cash used in financing activities | (1,644,473) | (53,533) | (77,246) |
Net (decrease) increase in cash and cash equivalents | (111,053) | 93,746 | 16,565 |
Cash and cash equivalents, beginning of period | 195,397 | 101,651 | 85,086 |
Cash and cash equivalents, end of period | $ 84,344 | $ 195,397 | $ 101,651 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Shenandoah Telecommunications Company and its subsidiaries (collectively, the “Company”) provide 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. We also lease dark fiber and provide Ethernet and Wavelength fiber optic services to enterprise and wholesale customers throughout the entirety of our service area. 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 integrated networks are connected by a fiber network. All of these operations are contained within our Broadband reporting segment. Our Tower segment owns 223 cell towers and leases colocation space on those towers to wireless communications providers, refer to Note 15, Segment Reporting , for additional information. Revision of Prior Period Financial Statements Immaterial correction of accumulated error During 2021, the Company determined that an error existed in our previously issued financial statements related to the capitalization of labor costs associated with customer installation activities at existing service locations for the Broadband segment. These activities were incorrectly recognized as capitalized contract fulfillment costs since the adoption of Accounting Standards Codification 606, Revenue from contracts with customers, (“ASC 606”) on January 1, 2018. The costs should have been expensed according to application of historical accounting policy in place prior to the adoption of ASC 606, and pursuant to industry specific guidance ASC 922 Entertainment – Cable Television. The error was evaluated under the U.S. Securities and Exchange Commission's ("SEC's") authoritative guidance on materiality and the quantification of the effect of prior period misstatements on the Company’s financial statements. Although the Company has determined such error to be immaterial to its prior annual and interim financial statements, the cumulative effect of the error would be material if corrected in the current year. Therefore, the Company revised its historical financial statements to properly reflect the historical accounting policy elected pursuant to ASC 922. The cumulative impact of such error, relative to earnings, for the period prior to 2019 was insignificant. As of and for the Year Ended ($ in thousands) Pre-Adjustment Error Correction Post-Adjustment Consolidated Balance Sheet: Prepaid expenses and other $ 9,631 $ (2,109) $ 7,522 Deferred charges and other assets 11,650 (5,202) 6,448 Deferred income taxes 150,652 (1,968) 148,684 Retained earnings 539,783 (5,343) 534,440 Consolidated Statement of Comprehensive Income: Cost of services 88,203 1,454 89,657 Income before income taxes 2,040 (1,454) 586 Income tax (benefit) expense (586) (404) (990) Income from continuing operations 2,626 (1,050) 1,576 Net income 126,723 (1,050) 125,673 Comprehensive income 121,709 (1,050) 120,659 Net income per share, basic and diluted: Basic - Income from continuing operations $ 0.05 $ (0.02) $ 0.03 Basic - Net income per share $ 2.54 $ (0.02) $ 2.52 Diluted - Income from continuing operations $ 0.05 $ (0.02) $ 0.03 Diluted - Net income per share $ 2.53 $ (0.02) $ 2.51 As of and for the Year Ended ($ in thousands) Pre-Adjustment Error Correction Post-Adjustment Consolidated Balance Sheet: Prepaid expenses and other $ 11,178 $ (2,510) $ 8,668 Deferred charges and other assets 9,267 (3,349) 5,918 Deferred income taxes 137,567 (1,565) 136,002 Retained earnings, beginning of year 388,496 (3,838) 384,658 Retained earnings, end of year 430,010 (4,294) 425,716 Consolidated Statement of Comprehensive Income: Cost of services 82,949 623 83,572 Income before income taxes 2,561 (623) 1,938 Income tax (benefit) expense 173 (167) 6 Income from continuing operations 2,388 (456) 1,932 Net income 55,956 (456) 55,500 Comprehensive income 47,984 (456) 47,528 Net income per share, basic and diluted: Basic - Income from continuing operations $ 0.05 $ (0.01) $ 0.04 Basic - Net income per share $ 1.12 $ (0.01) $ 1.11 Diluted - Income from continuing operations $ 0.05 $ (0.01) $ 0.04 Diluted - Net income per share $ 1.12 $ (0.01) $ 1.11 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of consolidation: The accompanying consolidated financial statements include the accounts of Shenandoah Telecommunications Company and all of its wholly owned subsidiaries. All intercompany accounts and transactions for continuing operations have been eliminated in consolidation. Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or the U.S., requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results to be reported in future periods could differ from our estimates. Cash and cash equivalents: Cash equivalents include all investments with an original maturity of three months or less. The Company places its temporary cash investments with high credit quality financial institutions. Generally, such investments are in excess of FDIC or SIPC insurance limits. Property, plant and equipment: Property, plant and equipment is stated at cost less accumulated depreciation. The Company capitalizes all costs associated with the purchase, deployment and installation of property, plant and equipment, including interest costs and internal labor costs on major capital projects during the period of their construction. Maintenance expense is recognized as incurred when repairs are performed that do not extend the life of property, plant and equipment. Expenses for major renewals and improvements, which significantly extend the useful lives of existing property and equipment, are capitalized and depreciated. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Labor costs associated with customer installation activities at existing service locations are expensed as incurred under industry specific guidance. Leasehold improvements are depreciated over the lesser of their useful lives or respective lease terms. Land is not depreciated. Refer to Note 6, Property, Plant and Equipment, for additional information. Indefinite-lived Intangible Assets: Goodwill represents the excess of acquisition costs over the fair value of tangible net assets and identifiable intangible assets of the businesses acquired. Cable franchise rights provide us with the non-exclusive right to provide video services in a specified area. Spectrum licenses are issued by the Federal Communications Commission (“FCC”) and provide us with either an exclusive or priority access right to utilize designated radio frequency spectrum within specific geographic service areas to provide wireless communication services. While some cable franchises and spectrum licenses are issued for a fixed time (generally ten years and up to fifteen years, respectively), renewals have been granted routinely and at nominal costs. The Company believes it will be able to meet all requirements necessary to secure renewal of its cable franchise rights and spectrum licenses. Moreover, the Company has determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of our cable franchises or spectrum licenses and as a result, we account for cable franchise rights and spectrum licenses as indefinite-lived intangible assets. Indefinite-lived intangible assets are not amortized, but rather, are subject to impairment testing annually, in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. These assets are evaluated for impairment based on the identification of reporting units. Our reporting units align with our reporting segments. We evaluated our reporting units for impairment during the fourth quarter of 2021, 2020 and 2019, respectively, on the basis of qualitative factors. Our consideration of qualitative factors included but was not limited to macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances, after tax cash flows and market capitalization trends. We concluded that there were no indicators that a reporting unit impairment was more likely than not during the years ended December 31, 2021, 2020, or 2019. Long-lived Assets: Finite-lived intangible assets, property, plant, and equipment, and other long-lived assets are amortized or depreciated over their estimated useful lives, as summarized in the respective notes below. These assets are evaluated for impairment based on the identification of asset groups. Our asset groups align with our reportable segments. We evaluated our asset groups for impairment during the fourth quarter of 2021. We concluded that there were no indicators that an asset group impairment was more likely than not during the years ended December 31, 2021, 2020, or 2019. Advertising Costs: The Company expenses advertising costs and marketing production costs as incurred and includes such costs within selling, general and administrative expenses in the consolidated statements of operations. Advertising expense for the years ended December 31, 2021, 2020 and 2019 was $4.4 million, $2.7 million and $3.5 million, respectively. Benefit Plan Obligations: The Benefit Plan Obligations caption includes the following: ($ in thousands) December 31, 2021 December 31, 2020 Pension Plan $ 2,393 $ 7,961 Postretirement Medical Benefits Plan 3,506 3,997 Supplemental executive retirement plan ("SERP") 2,317 2,687 Total $ 8,216 $ 14,645 The pension plan is a frozen defined benefit plan. Benefits under the plan vested after five years of plan service and were based on years of service and an average of the five highest consecutive years of compensation subject to certain reductions if the employee elects to receive the benefit prior to age 65. This plan was amended on December 31, 2012, to freeze future benefit plan accruals for participants. As of December 31, 2021 and 2020, the fair value of our Pension Plan assets were $31.1 million and $27.0 million, respectively. These investments are held in mutual funds, and are valued based on the net asset value per share. Our Pension Plan's projected benefit obligation was $33.5 million and $34.9 million, at December 31, 2021 and 2020, respectively. The Pension Plan liability was discounted at 2.74% and 2.41% at December 31, 2021 and 2020, respectively. 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 expects to complete the termination of the plan, and settle all obligations thereunder, in 2022. The postretirement medical benefits plan is a frozen, unfunded, defined benefit plan. The postretirement plan liability was discounted at 2.70% and 2.32% at December 31, 2021 and 2020, respectively. Following our adoption of ASU 2017-17, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, on January 1, 2018, all components of benefit plan expense are presented in Other income, net and our policy is to immediately recognize actuarial gains and losses into earnings. The SERP is a benefit plan that provides deferred compensation to certain employees. The Company holds 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, net, while the reciprocal changes in the liability representative of compensatory expense, are presented in selling, general and administrative expense. New Accounting Standards In March 2020, the FASB issued ASU 2020-04 “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ” This accounting update provides optional accounting relief to entities with contracts, hedge accounting relationships or other transactions that reference London Interbank Offering Rate (LIBOR) or other interest rate benchmarks for which the referenced rate is expected to be discontinued or replaced. This optional relief generally allows for contract modifications solely related to the replacement of the reference rate to be accounted for as a continuation of the existing contract instead of as an extinguishment of the contract, and therefore would not require reassessment of a previous accounting determination. The Company's Credit Agreement has LIBOR as a reference rate. We plan to apply the accounting relief as any relevant contract modifications are made to our Credit Agreement during the course of the reference rate reform transition period. The optional relief can be applied beginning January 1, 2020, and ending December 31, 2022. We adopted ASU No. 2018-02- Income Statement - Reporting Comprehensive Income, ("ASC 220"), as of January 1, 2019. We elected not to reclassify stranded income tax effects from accumulated other comprehensive income (OCI) to retained earnings. We utilize the portfolio approach as our policy to release the income tax effects from accumulated OCI as the entire portfolio is liquidated, sold, or extinguished. In November 2021, the FASB issued ASU 2021-10, “ Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, ” which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information about the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard is effective for the Corporation on January 1, 2022 and only impacts annual financial statement disclosures. The adoption is not expected to have a material effect on our consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 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 consolidated balance sheets, and discontinued operations within our historical 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 the Company’s long-term debt did not transfer in the sale, its provisions required full repayment of all outstanding amounts, concurrent with the consummation of the sale. Accordingly, all debt balances and related interest rate swap liabilities were therefore presented outside of the disposal group as a current liability as of December 31, 2020, and. 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 for the years ended December 31, 2021, 2020 and 2019: (in thousands) Revenue: 2021 2020 2019 Service revenue and other $ 201,076 $ 401,035 $ 375,730 Equipment revenue 12,253 41,338 67,659 Total revenue 213,329 442,373 443,389 Operating expenses: Cost of services 38,144 116,394 128,482 Cost of goods sold 11,964 40,642 65,148 Selling, general and administrative 17,514 34,011 39,128 Severance expense 465 — — Depreciation and amortization — 62,930 111,467 Total operating expenses 68,087 253,977 344,225 Operating income 145,242 188,396 99,164 Other (expense) income: Debt extinguishment (11,032) — — Interest expense and other, net (9,178) (20,455) (29,286) Gain on sale of disposition of Wireless assets and operations 1,227,531 — — Income before income taxes 1,352,563 167,941 69,878 Income tax expense 361,661 43,844 16,310 Income from discontinued operations, net of tax $ 990,902 $ 124,097 $ 53,568 Consummation of the sale triggered the recognition of approximately $21.2 million of incremental selling costs during 2021, for contingent deal advisory fees and severance expenses, which are netted against the gain on sale of disposition of Wireless assets and operations. In addition, 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 in connection with the Wireless sale. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 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 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. Below is a summary of the Broadband segment's capitalized contract acquisition costs: (in thousands) 2021 2020 Beginning Balance $ 7,358 $ 5,147 Commission payments 3,229 4,399 Contract amortization (2,440) (2,188) Ending Balance $ 8,147 $ 7,358 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 $3.5 million at December 31, 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 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 15, Segment Reporting , for a summary of these revenue streams. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Abstract] | |
Investments | Investments Investments consist of the following: (in thousands) December 31, December 31, SERP Investments at fair value $ 2,317 $ 2,687 Cost method investments 11,004 10,536 Equity method investments 340 546 Total investments $ 13,661 $ 13,769 SERP Investments at fair value: The Company holds the SERP 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 six months after retirement. The benefit obligation to participants is always equal to the value of the SERP assets under ASC 710, Compensation . Cost Method Investments : Our investment in CoBank’s Class A common stock, derived from the CoBank patronage program, represented substantially all of our cost method investments with a balance of $10.3 million and $9.8 million at December 31, 2021 and 2020, respectively. We recognized approximately $2.0 million, $4.2 million and $4.2 million of patronage income in Other income (expense) in 2021, 2020 and 2019, respectively. Historically, approximately 75% of the patronage distributions were collected in cash and 25% in equity. Equity Method Investments: At December 31, 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 $0.7 million, $0.9 million, and $1.0 million from providing service to ValleyNet during 2021, 2020, and 2019, respectively. We recognized cost of service of $1.2 million, $2.7 million, and $3.0 million for the use of ValleyNet’s network during 2021, 2020, and 2019, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following: ($ in thousands) Estimated Useful Lives December 31, December 31, Land $ 3,771 $ 3,909 Land improvements 10 years 3,478 2,910 Buildings and structures 10 - 45 years 96,323 91,335 Cable and fiber 15 - 30 years 453,405 390,209 Equipment and software 4 - 8 years 391,293 331,047 Plant in service 948,270 819,410 Plant under construction 79,963 49,417 Total property, plant and equipment 1,028,233 868,827 Less: accumulated amortization and depreciation 474,071 428,400 Property, plant and equipment, net $ 554,162 $ 440,427 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company's intangible assets consisted of the following: December 31, 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 13,839 — 13,839 29,958 — 29,958 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 78,314 — 78,314 94,433 — 94,433 Finite-lived intangibles: FCC spectrum licenses 6,811 (672) 6,139 6,811 (340) 6,471 Subscriber relationships 28,425 (26,451) 1,974 28,425 (26,000) 2,425 Other intangibles 463 (303) 160 463 (277) 186 Total finite-lived intangibles 35,699 (27,426) 8,273 35,699 (26,617) 9,082 Total goodwill and intangible assets $ 117,257 $ (27,426) $ 89,831 $ 133,376 $ (26,617) $ 106,759 During the third quarter of 2020, the Company was awarded certain indefinite-lived Citizens Broadband Radio Service ("CBRS") spectrum licenses to be used within the Broadband segment. The Company paid an aggregate deposit of $16.1 million with the licenses subject to final approval and issuance by the Federal Communications Commission (“FCC”). The licenses will provide us priority access rights over general access users other than incumbents, in that specific band, in accordance with the FCC’s three-tier CBRS band spectrum sharing framework to utilize designated radio frequency spectrum within specific geographic service areas to provide wireless communication services. The FCC has delayed the issuance of the licenses because the allowable spectrum ownership levels for certain of our investors would be exceeded should the licenses be issued. The Company is currently in discussions with the FCC and is considering to forego the issuance of certain licenses included in this transaction covering 15 markets with a cost basis of approximately $4.5 million in exchange for a refund and expects resolution in early 2022. The entire deposit of $16.1 million is classified within prepaid expenses and other in the Company's consolidated balance sheet as of December 31, 2021. For the years ended December 31, 2021, 2020 and 2019, amortization expense was approximately $0.8 million, $0.7 million and $0.5 million, respectively. Our finite-lived intangible assets are amortized over the following estimated useful lives: Estimated Useful Life FCC spectrum licenses 18 - 30 years Subscriber relationships 3 - 10 years Other intangibles 15 - 20 years The following table summarizes expected amortization of intangible assets at December 31, 2021: (in thousands) Amortization of Intangible Assets 2022 $ 772 2023 772 2024 772 2025 768 2026 427 Thereafter 4,762 Total $ 8,273 |
Other Assets and Accrued Liabil
Other Assets and Accrued Liabilities | 12 Months Ended |
Dec. 31, 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) December 31, December 31, Deposit for FCC spectrum licenses $ 16,118 $ — Prepaid maintenance expenses 8,391 4,018 Broadband contract acquisition costs 2,502 2,308 SERP investments 801 — Other 2,018 1,196 Prepaid expenses and other $ 29,830 $ 7,522 Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) December 31, December 31, 2020 Broadband contract acquisition costs $ 5,645 $ 5,050 Prepaid expenses and other 4,653 1,398 Deferred charges and other assets $ 10,298 $ 6,448 Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) December 31, 2021 December 31, 2020 Interest rate swaps $ — $ 4,048 Accrued programming costs 3,084 2,868 Sales and property taxes payable 1,065 1,072 Restructuring accrual 1,761 — Other current liabilities 8,739 5,881 Accrued liabilities and other $ 14,649 $ 13,869 Other liabilities, classified as long-term liabilities, included the following: (in thousands) December 31, December 31, 2020 Noncurrent portion of deferred lease revenue $ 19,749 $ 18,687 FCC spectrum license obligations 3,807 3,845 Noncurrent portion of financing leases 1,614 1,492 Other 461 881 Other liabilities $ 25,631 $ 24,905 Restructuring activities During 2021, in connection with the disposition of our Wireless segment, we implemented a restructuring plan whereby certain employees were notified of their pending dismissal under the workforce reduction program. The following table identifies severance activity that has occurred as a result of the plan: (in thousands) Year Ended Beginning Balance January 1, 2021 $ — Expense (1) 3,862 Payments (2) (2,101) Ending Balance - December 31, 2021 $ 1,761 _______________________________________________________ (1) For the year ended December 31, 2021, approximately $2.2 million of expense was recognized within discontinued operations and $1.7 million in continuing operations. (2) For the year ended December 31, 2021, approximately $1.4 million of payments were attributable to discontinued operations and $0.7 million in continued operations. Asset Retirement Obligations: Our asset retirement obligations ("ARO") arise from certain of our leases and generally require us to remove our towers from ground leases. The Company's estimates related to ARO were revised during 2021 resulting in recognition of an additional obligation of $4.3 million. Below is a summary of our current and non-current asset retirement obligations: Years Ended December 31, (in thousands) 2021 2020 2019 Balance at beginning of year $ 5,113 $ 6,152 $ 8,808 Additional liabilities accrued 4,334 262 593 Changes to prior estimates (44) (1,633) (3,659) Payments — — — Accretion expense 421 332 410 Balance at end of year $ 9,824 $ 5,113 $ 6,152 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases We adopted ASC 842 on January 1, 2019 using the modified retrospective method. We applied the package of practical expedients and, as a result, did not reassess prior conclusions regarding lease identification, lease classification and initial direct costs under the new standard. In those circumstances where the Company is the lessee, we elected to account for non-lease components associated with our leases (e.g., maintenance costs) and lease components as a single lease component for substantially all of our asset classes. We lease various telecommunications sites, 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 ROU 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 December 31, 2021, our operating leases had a weighted average remaining lease term of twenty years and a weighted average discount rate of 4.4%. Our finance leases had a weighted average remaining lease term of fourteen years and a weighted average discount rate of 5.2%. During 2021, we recognized $7.1 million of operating lease expense and $0.6 million of interest and depreciation expense on finance leases. 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 $5.6 million of operating lease payments during 2021. We also obtained $11.1 million and $6.8 million of leased assets in exchange for new operating lease liabilities recognized during 2021 and 2020, respectively. The following table summarizes the expected maturity of lease liabilities at December 31, 2021: (in thousands) Operating Leases Finance Leases Total 2022 $ 5,546 $ 180 $ 5,726 2023 5,159 182 5,341 2024 4,815 184 4,999 2025 4,636 186 4,822 2026 4,150 159 4,309 2027 and thereafter 65,909 1,503 67,412 Total lease payments 90,215 2,394 92,609 Less: Interest 35,205 696 35,901 Present value of lease liabilities $ 55,010 $ 1,698 $ 56,708 We recognized $11.1 million of operating lease revenue during 2021 related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in service and other revenue in the consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our contractual minimum rental receipts expected under the lease agreements in place at December 31, 2021: (in thousands) Operating Leases 2022 $ 14,460 2023 12,947 2024 12,083 2025 11,134 2026 8,198 2027 and thereafter 28,915 Total $ 87,737 |
Leases | Leases We adopted ASC 842 on January 1, 2019 using the modified retrospective method. We applied the package of practical expedients and, as a result, did not reassess prior conclusions regarding lease identification, lease classification and initial direct costs under the new standard. In those circumstances where the Company is the lessee, we elected to account for non-lease components associated with our leases (e.g., maintenance costs) and lease components as a single lease component for substantially all of our asset classes. We lease various telecommunications sites, 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 ROU 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 December 31, 2021, our operating leases had a weighted average remaining lease term of twenty years and a weighted average discount rate of 4.4%. Our finance leases had a weighted average remaining lease term of fourteen years and a weighted average discount rate of 5.2%. During 2021, we recognized $7.1 million of operating lease expense and $0.6 million of interest and depreciation expense on finance leases. 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 $5.6 million of operating lease payments during 2021. We also obtained $11.1 million and $6.8 million of leased assets in exchange for new operating lease liabilities recognized during 2021 and 2020, respectively. The following table summarizes the expected maturity of lease liabilities at December 31, 2021: (in thousands) Operating Leases Finance Leases Total 2022 $ 5,546 $ 180 $ 5,726 2023 5,159 182 5,341 2024 4,815 184 4,999 2025 4,636 186 4,822 2026 4,150 159 4,309 2027 and thereafter 65,909 1,503 67,412 Total lease payments 90,215 2,394 92,609 Less: Interest 35,205 696 35,901 Present value of lease liabilities $ 55,010 $ 1,698 $ 56,708 We recognized $11.1 million of operating lease revenue during 2021 related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in service and other revenue in the consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our contractual minimum rental receipts expected under the lease agreements in place at December 31, 2021: (in thousands) Operating Leases 2022 $ 14,460 2023 12,947 2024 12,083 2025 11,134 2026 8,198 2027 and thereafter 28,915 Total $ 87,737 |
Leases | Leases We adopted ASC 842 on January 1, 2019 using the modified retrospective method. We applied the package of practical expedients and, as a result, did not reassess prior conclusions regarding lease identification, lease classification and initial direct costs under the new standard. In those circumstances where the Company is the lessee, we elected to account for non-lease components associated with our leases (e.g., maintenance costs) and lease components as a single lease component for substantially all of our asset classes. We lease various telecommunications sites, 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 ROU 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 December 31, 2021, our operating leases had a weighted average remaining lease term of twenty years and a weighted average discount rate of 4.4%. Our finance leases had a weighted average remaining lease term of fourteen years and a weighted average discount rate of 5.2%. During 2021, we recognized $7.1 million of operating lease expense and $0.6 million of interest and depreciation expense on finance leases. 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 $5.6 million of operating lease payments during 2021. We also obtained $11.1 million and $6.8 million of leased assets in exchange for new operating lease liabilities recognized during 2021 and 2020, respectively. The following table summarizes the expected maturity of lease liabilities at December 31, 2021: (in thousands) Operating Leases Finance Leases Total 2022 $ 5,546 $ 180 $ 5,726 2023 5,159 182 5,341 2024 4,815 184 4,999 2025 4,636 186 4,822 2026 4,150 159 4,309 2027 and thereafter 65,909 1,503 67,412 Total lease payments 90,215 2,394 92,609 Less: Interest 35,205 696 35,901 Present value of lease liabilities $ 55,010 $ 1,698 $ 56,708 We recognized $11.1 million of operating lease revenue during 2021 related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in service and other revenue in the consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our contractual minimum rental receipts expected under the lease agreements in place at December 31, 2021: (in thousands) Operating Leases 2022 $ 14,460 2023 12,947 2024 12,083 2025 11,134 2026 8,198 2027 and thereafter 28,915 Total $ 87,737 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our cash payments for interest were $10.4 million and $18.6 million during 2021 and 2020, respectively. As discussed in Note 3, 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 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, when drawn upon, are to 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. Interest payments on outstanding loans are required monthly, beginning in the period of the initial and any subsequent draws. 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 December 31, 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. |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging As discussed in Note 3, Discontinued Operations , upon consummation of the Transaction, the Company used approximately $2.6 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) (Losses) Gains on Income Tax Accumulated Balance as of December 31, 2020 $ (4,048) $ (658) $ (4,706) Other comprehensive income (loss) before reclassifications 1,447 (361) 1,086 Amounts reclassified from accumulated other comprehensive income (loss) to interest expense 2,601 1,019 3,620 Net current period other comprehensive (loss) income 4,048 658 4,706 Balance as of December 31, 2021 $ — $ — $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files a consolidated U.S. federal income tax return and various state income tax returns. The provision for the federal and state income taxes attributable to income (loss) consists of the following components: Years Ended December 31, (in thousands) 2021 2020 2019 Current (benefit) expense Federal taxes $ (21,392) $ (13,748) $ (16,393) State taxes (2,565) (2,148) (282) Total current provision (23,957) (15,896) (16,675) Deferred expense (benefit) Federal taxes 25,518 13,325 16,286 State taxes (3,255) 1,581 395 Total deferred provision 22,263 14,906 16,681 Income tax (benefit) expense $ (1,694) $ (990) $ 6 Effective tax rate (27.2) % (168.9) % 0.3 % A reconciliation of income tax expense (benefit) determined by applying the federal and state tax rates to income before income taxes is as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Expected tax expense at federal statutory $ 1,310 $ 24 $ 371 State income taxes, net of federal tax effect 438 54 15 Revaluation of deferred tax liabilities (5,206) — — Stranded tax effects reclassified from other comprehensive income 1,620 — — Excess tax benefit from share based compensation and other expense, net 144 (1,068) (380) Income tax (benefit) expense $ (1,694) $ (990) $ 6 The effective tax rate in 2021 decreased from 2020, primarily as a result of recognition of non-cash deferred tax benefits triggered by the disposition of Wireless assets and operations, (see Note 3 – Discontinued Operations ), which drove 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 during the year ended December 31, 2021. The Company's net cash payments for income taxes were $459.1 million in the year ended December 31, 2021, which included $434.3 million of payments related to the taxable gain from the sale of the Wireless business. The Company's cash payments for income taxes were $11.2 million in the year ended December 31, 2020. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply in the year of reversal or settlement and arise from temporary differences between the US GAAP and tax bases of the following assets and liabilities: (in thousands) December 31, December 31, Deferred tax assets: Leases $ 15,483 $ 123,129 Asset retirement obligations 2,581 10,403 Net operating loss carry-forwards 5,878 7,723 Pension liabilities 2,148 3,868 Accruals and stock based compensation 2,572 3,093 Other 6,300 5,002 Total gross deferred tax assets 34,962 153,218 Less valuation allowance — — Net deferred tax assets 34,962 153,218 Deferred tax liabilities: Property, plant and equipment 92,449 127,602 Leases 15,410 126,458 Intangible assets 10,710 25,722 Prepaid assets and other 2,407 22,120 Total gross deferred tax liabilities 120,976 301,902 Net deferred tax liabilities $ 86,014 $ 148,684 In assessing the ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generating future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, taxable income in prior carryback years if available and tax planning strategies in making this assessment. Based upon the level of historical taxable income, projections for future taxable income over the periods for which the deferred tax assets are deductible, and the option to elect out of bonus depreciation on in-serviced fixed assets, the Company believes it more likely than not that the net deferred tax assets will be realized. The Company has a deferred tax asset of $5.9 million related to federal and various state net operating losses. As of December 31, 2021, the Company had approximately $27.8 million of federal net operating losses expiring through 2027. The Company also had approximately $0.3 million of state net operating losses expiring through 2036. As of December 31, 2021 and 2020, the Company had no unrecognized tax benefits. |
Stock Compensation, Earnings pe
Stock Compensation, Earnings per Share, and Dividends | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation, Earnings per Share, and Dividends | Stock Compensation, Earnings per Share, and Dividends The Company's 2014 Stock Incentive Plan ("the Plan") allows for the grant of equity based incentive compensation to all employees. The Plan authorizes grants of up to an additional 3,000,000 shares over a ten-year period beginning in 2014. Under the Plan, grants may take the form of stock awards, awards of options to acquire stock, stock appreciation rights, and other forms of equity based compensation; both options to acquire stock and stock awards were granted. The Company granted approximately 200 thousand restricted stock units (RSUs) to employees and directors during 2021 at an average market price of $28.99. The Company also granted, approximately 59 thousand performance-based Relative Total Shareholder Return (“RTSR”) awards to employees at an average value of $34.05 during 2020. 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”). On August 4, 2021, in accordance with the Plan, the Company's Board of Directors adopted a resolution to modify the outstanding equity awards to offset the grantees’ loss in intrinsic value caused by the disposition of wireless and the decline in the Company's share price following the Special Dividend. Approximately 81 thousand awards were issued, split between RSUs and RTSRs, as a result of this modification. 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. The Company's RSUs generally have service requirements only or performance and service requirements with vesting periods ranging from one year for directors to four years for employees. RTSR awards generally vest over an approximate three The cost of employee services received in exchange for share-based awards classified as equity is measured using the estimated fair value of the award on the date of the grant, and the related expense is recorded using the straight-line method consistent with the recipient's respective service period. Stock-based compensation expense was as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Stock compensation expense $ 3,552 $ 6,227 $ 3,732 Capitalized stock compensation 144 320 365 Stock compensation expense, net $ 3,408 $ 5,907 $ 3,367 As of December 31, 2021, there was $5.9 million of total unrecognized compensation cost related to non-vested incentive awards that are expected to be recognized over weighted average period of 1.8 years. 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: Years Ended December 31, (in thousands, except per share amounts) 2021 2020 2019 Calculation of net income per share: Income from continuing operations $ 7,929 $ 1,576 $ 1,932 Income from discontinued operations, net of tax $ 990,902 $ 124,097 $ 53,568 Net income $ 998,831 $ 125,673 $ 55,500 Basic weighted average shares outstanding 50,026 49,901 49,811 Basic net income per share - continuing operations $ 0.16 $ 0.03 $ 0.04 Basic net income per share - discontinued operations $ 19.81 $ 2.49 $ 1.07 Basic net income per share $ 19.97 $ 2.52 $ 1.11 Effect of stock-based compensation awards outstanding: Basic weighted average shares outstanding 50,026 49,901 49,811 Effect from dilutive shares and options outstanding 123 123 290 Diluted weighted average shares outstanding 50,149 50,024 50,101 Diluted net income per share - continuing operations $ 0.16 $ 0.03 $ 0.04 Diluted net income per share - discontinued operations $ 19.76 $ 2.48 $ 1.07 Diluted net income per share $ 19.92 $ 2.51 $ 1.11 There were approximately 259 thousand anti-dilutive awards outstanding during 2021 and fewer than 110 thousand anti-dilutive awards outstanding during 2020 and 2019. 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. In addition to the Special Dividend, on October 27, 2021, the Company Board of Directors declared the annual dividend of $0.07 per share on the |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 9, Leases. We also have outstanding unconditional purchase commitments to procure marketing services and IT software licenses through 2026 and commitments for licenses to access Educational Broadband Service (“EBS”) spectrum channels through 2039. For the years ended December 31, 2021, 2020 and 2019 we paid $3.4 million, $1.4 million and $0.5 million, respectively, for the marketing services and IT software license purchase commitments. For each of the years ended December 31, 2021, 2020 and 2019, we paid approximately $0.1 million for access to certain EBS spectrum channels. The Company is obligated to make the following future minimum payments under the non-cancelable terms of these commitments as of December 31, 2021: (in thousands) Purchase Commitments 2022 $ 3,658 2023 2,410 2024 1,385 2025 840 2026 190 2027 and thereafter 109 Total $ 8,592 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 | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The divestiture of our Wireless operations on July 1, 2021 represented a strategic shift in the Company’s business which therefore qualified the segment 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 a discontinued operation in our Consolidated Statements of Comprehensive Income and the 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. Intercompany revenue is primarily derived from services provided to the discontinued operation, for periods prior to the divestiture. Year ended December 31, 2021: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 177,530 $ — $ — $ 177,530 Commercial Fiber 30,842 — — 30,842 RLEC & Other 15,249 — — 15,249 Tower lease — 12,393 — 12,393 Service revenue and other 223,621 12,393 — 236,014 Revenue for service provided to the discontinued Wireless operations 4,459 5,311 (545) 9,225 Total revenue 228,080 17,704 (545) 245,239 Operating expenses Cost of services 97,283 5,438 (422) 102,299 Selling, general and administrative 47,840 1,197 33,414 82,451 Restructuring expense 202 — 1,525 1,727 Impairment expense 5,986 — — 5,986 Depreciation and amortization 47,937 2,053 5,216 55,206 Total operating expenses 199,248 8,688 39,733 247,669 Operating income (loss) $ 28,832 $ 9,016 $ (40,278) $ (2,430) Capital expenditures $ 156,131 $ 977 $ 2,993 $ 160,101 Year ended December 31, 2020: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 154,956 $ — $ — $ 154,956 Commercial Fiber 24,431 — — 24,431 RLEC & Other 15,971 — — 15,971 Tower lease — 7,402 — 7,402 Service revenue and other 195,358 7,402 — 202,760 Revenue for service provided to the discontinued Wireless operations 8,989 9,653 (627) 18,015 Total revenue 204,347 17,055 (627) 220,775 Operating expenses Cost of services 84,893 4,896 (132) 89,657 Selling, general and administrative 39,472 1,430 44,114 85,016 Depreciation and amortization 41,076 1,906 5,721 48,703 Total operating expenses 165,441 8,232 49,703 223,376 Operating income (loss) $ 38,906 $ 8,823 $ (50,330) $ (2,601) Capital expenditures $ 117,246 $ 2,001 $ 1,203 $ 120,450 Year ended December 31, 2019: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 142,290 $ — $ — $ 142,290 Commercial Fiber 23,004 — — 23,004 RLEC & Other 18,257 — — 18,257 Tower lease — 6,965 — 6,965 Service revenue and other 183,551 6,965 — 190,516 Revenue for service provided to the discontinued Wireless operations 10,392 6,020 (66) 16,346 Total revenue 193,943 12,985 (66) 206,862 Operating expenses Cost of services 79,858 3,777 (63) 83,572 Selling, general and administrative 33,545 937 43,364 77,846 Depreciation and amortization 38,566 1,976 6,244 46,786 Total operating expenses 151,969 6,690 49,545 208,204 Operating income (loss) $ 41,974 $ 6,295 $ (49,611) $ (1,342) Capital expenditures $ 60,627 $ 921 $ 5,500 $ 67,048 A reconciliation of the total of the reportable segments’ operating income to consolidated income before taxes is as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Total consolidated operating loss $ (2,430) $ (2,601) $ (1,342) Other income, net 8,665 3,187 3,280 Income from continuing operations before income taxes $ 6,235 $ 586 $ 1,938 The Company’s CODM does not currently review total assets by segment since the assets are centrally managed and some of the assets are shared by the segments, accordingly total assets by segment are not applicable. |
Quarterly Results (unaudited)
Quarterly Results (unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (unaudited) | Quarterly Results (unaudited) The following table reflects selected quarterly results for the Company. Amounts were adjusted from their previous presentation as a result of the error correction discussed in Note 1. Three Months Ended (in thousands, except per share data) March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 Revenue $ 59,691 $ 60,700 $ 62,244 $ 62,604 Operating income (loss) 2,230 2,390 851 (7,901) Income (loss) from continuing operations 2,945 1,626 6,495 (3,137) Income (loss) from discontinued operations, net of tax 48,472 51,566 (406) (4,965) Gain on the sale of discontinued operations, net of tax — — 886,732 9,503 Net income 51,417 53,192 892,821 1,401 Basic - Income (loss) from continuing operations $ 0.06 $ 0.03 $ 0.13 $ (0.06) Basic - Income from discontinued operations, net of tax $ 0.97 $ 1.04 $ 17.73 $ 0.09 Basic net income per share $ 1.03 $ 1.07 $ 17.86 $ 0.03 Diluted - Income (loss) from continuing operations $ 0.06 $ 0.03 $ 0.13 $ (0.06) Diluted - Income from discontinued operations, net of tax $ 0.97 $ 1.03 $ 17.68 $ 0.09 Diluted net income per share $ 1.03 $ 1.06 $ 17.81 $ 0.03 Three Months Ended (in thousands except per share data) March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Revenue $ 53,134 $ 54,336 $ 55,173 $ 58,132 Operating income (loss) (1,648) (2,361) (121) 1,529 Income (loss) from continuing operations (55) (893) 985 1,539 Income from discontinued operations, net of tax 13,129 29,784 33,509 47,675 Net income 13,074 28,891 34,494 49,214 Basic - Income (loss) from continuing operations $ — $ (0.02) $ 0.02 $ 0.03 Basic - Income from discontinued operations, net of tax $ 0.26 $ 0.60 $ 0.67 $ 0.96 Basic net income per share $ 0.26 $ 0.58 $ 0.69 $ 0.99 Diluted - Income (loss) from continuing operations $ — $ (0.02) $ 0.02 $ 0.03 Diluted - Income from discontinued operations, net of tax $ 0.26 $ 0.60 $ 0.67 $ 0.95 Diluted net income per share $ 0.26 $ 0.58 $ 0.69 $ 0.98 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts Changes in the Company’s allowance for doubtful accounts for accounts receivable for the years ended December 31, 2021, 2020 and 2019 are summarized below: (in thousands) Balance at Beginning of Year Recoveries added to allowance Bad debt expense Write-offs Balance at End of Year Year Ended December 31, 2021 Allowance for doubtful accounts $ 614 $ 530 $ 1,028 $ (1,820) $ 352 Year Ended December 31, 2020 Allowance for doubtful accounts $ 533 $ 758 $ 1,220 $ (1,897) $ 614 Year Ended December 31, 2019 Allowance for doubtful accounts $ 534 $ 649 $ 1,743 $ (2,393) $ 533 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of consolidation | The accompanying consolidated financial statements include the accounts of Shenandoah Telecommunications Company and all of its wholly owned subsidiaries. All intercompany accounts and transactions for continuing operations have been eliminated in consolidation. |
Use of estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or the U.S., requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results to be reported in future periods could differ from our estimates. |
Cash and cash equivalents | Cash equivalents include all investments with an original maturity of three months or less. The Company places its temporary cash investments with high credit quality financial institutions. Generally, such investments are in excess of FDIC or SIPC insurance limits. |
Property, plant and equipment | Property, plant and equipment is stated at cost less accumulated depreciation. The Company capitalizes all costs associated with the purchase, deployment and installation of property, plant and equipment, including interest costs and internal labor costs on major capital projects during the period of their construction. Maintenance expense is recognized as incurred when repairs are performed that do not extend the life of property, plant and equipment. Expenses for major renewals and improvements, which significantly extend the useful lives of existing property and equipment, are capitalized and depreciated. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Labor costs associated with customer installation activities at existing service locations are expensed as incurred under industry specific guidance. Leasehold improvements are depreciated over the lesser of their useful lives or respective lease terms. Land is not depreciated. Refer to Note 6, Property, Plant and Equipment, for additional information. |
Indefinite-lived Intangible Assets | Goodwill represents the excess of acquisition costs over the fair value of tangible net assets and identifiable intangible assets of the businesses acquired. Cable franchise rights provide us with the non-exclusive right to provide video services in a specified area. Spectrum licenses are issued by the Federal Communications Commission (“FCC”) and provide us with either an exclusive or priority access right to utilize designated radio frequency spectrum within specific geographic service areas to provide wireless communication services. While some cable franchises and spectrum licenses are issued for a fixed time (generally ten years and up to fifteen years, respectively), renewals have been granted routinely and at nominal costs. The Company believes it will be able to meet all requirements necessary to secure renewal of its cable franchise rights and spectrum licenses. Moreover, the Company has determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of our cable franchises or spectrum licenses and as a result, we account for cable franchise rights and spectrum licenses as indefinite-lived intangible assets.Indefinite-lived intangible assets are not amortized, but rather, are subject to impairment testing annually, in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. These assets are evaluated for impairment based on the identification of reporting units. Our reporting units align with our reporting segments. We evaluated our reporting units for impairment during the fourth quarter of 2021, 2020 and 2019, respectively, on the basis of qualitative factors. Our consideration of qualitative factors included but was not limited to macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances, after tax cash flows and market capitalization trends. |
Long-lived Assets | Finite-lived intangible assets, property, plant, and equipment, and other long-lived assets are amortized or depreciated over their estimated useful lives, as summarized in the respective notes below. These assets are evaluated for impairment based on the identification of asset groups. Our asset groups align with our reportable segments. We evaluated our asset groups for impairment during the fourth quarter of 2021. |
Advertising Costs | Advertising Costs: The Company expenses advertising costs and marketing production costs as incurred and includes such costs within selling, general and administrative expenses in the consolidated statements of operations. |
Retirement plans | The pension plan is a frozen defined benefit plan. Benefits under the plan vested after five years of plan service and were based on years of service and an average of the five highest consecutive years of compensation subject to certain reductions if the employee elects to receive the benefit prior to age 65. This plan was amended on December 31, 2012, to freeze future benefit plan accruals for participants. |
New Accounting Standards | New Accounting Standards In March 2020, the FASB issued ASU 2020-04 “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ” This accounting update provides optional accounting relief to entities with contracts, hedge accounting relationships or other transactions that reference London Interbank Offering Rate (LIBOR) or other interest rate benchmarks for which the referenced rate is expected to be discontinued or replaced. This optional relief generally allows for contract modifications solely related to the replacement of the reference rate to be accounted for as a continuation of the existing contract instead of as an extinguishment of the contract, and therefore would not require reassessment of a previous accounting determination. The Company's Credit Agreement has LIBOR as a reference rate. We plan to apply the accounting relief as any relevant contract modifications are made to our Credit Agreement during the course of the reference rate reform transition period. The optional relief can be applied beginning January 1, 2020, and ending December 31, 2022. We adopted ASU No. 2018-02- Income Statement - Reporting Comprehensive Income, ("ASC 220"), as of January 1, 2019. We elected not to reclassify stranded income tax effects from accumulated other comprehensive income (OCI) to retained earnings. We utilize the portfolio approach as our policy to release the income tax effects from accumulated OCI as the entire portfolio is liquidated, sold, or extinguished. In November 2021, the FASB issued ASU 2021-10, “ Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, ” which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information about the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard is effective for the Corporation on January 1, 2022 and only impacts annual financial statement disclosures. The adoption is not expected to have a material effect on our consolidated financial statements. |
Investment | SERP Investments at fair value: The Company holds the SERP 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 six months after retirement. The benefit obligation to participants is always equal to the value of the SERP assets under ASC 710, Compensation . Cost Method Investments : Our investment in CoBank’s Class A common stock, derived from the CoBank patronage program, represented substantially all of our cost method investments with a balance of $10.3 million and $9.8 million at December 31, 2021 and 2020, respectively. We recognized approximately $2.0 million, $4.2 million and $4.2 million of patronage income in Other income (expense) in 2021, 2020 and 2019, respectively. Historically, approximately 75% of the patronage distributions were collected in cash and 25% in equity. Equity Method Investments: At December 31, 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 $0.7 million, $0.9 million, and $1.0 million from providing service to ValleyNet during 2021, 2020, and 2019, respectively. We recognized cost of service of $1.2 million, $2.7 million, and $3.0 million for the use of ValleyNet’s network during 2021, 2020, and 2019, respectively. |
Nature of Operations (Tables)
Nature of Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revision of historical financial statements | As of and for the Year Ended ($ in thousands) Pre-Adjustment Error Correction Post-Adjustment Consolidated Balance Sheet: Prepaid expenses and other $ 9,631 $ (2,109) $ 7,522 Deferred charges and other assets 11,650 (5,202) 6,448 Deferred income taxes 150,652 (1,968) 148,684 Retained earnings 539,783 (5,343) 534,440 Consolidated Statement of Comprehensive Income: Cost of services 88,203 1,454 89,657 Income before income taxes 2,040 (1,454) 586 Income tax (benefit) expense (586) (404) (990) Income from continuing operations 2,626 (1,050) 1,576 Net income 126,723 (1,050) 125,673 Comprehensive income 121,709 (1,050) 120,659 Net income per share, basic and diluted: Basic - Income from continuing operations $ 0.05 $ (0.02) $ 0.03 Basic - Net income per share $ 2.54 $ (0.02) $ 2.52 Diluted - Income from continuing operations $ 0.05 $ (0.02) $ 0.03 Diluted - Net income per share $ 2.53 $ (0.02) $ 2.51 As of and for the Year Ended ($ in thousands) Pre-Adjustment Error Correction Post-Adjustment Consolidated Balance Sheet: Prepaid expenses and other $ 11,178 $ (2,510) $ 8,668 Deferred charges and other assets 9,267 (3,349) 5,918 Deferred income taxes 137,567 (1,565) 136,002 Retained earnings, beginning of year 388,496 (3,838) 384,658 Retained earnings, end of year 430,010 (4,294) 425,716 Consolidated Statement of Comprehensive Income: Cost of services 82,949 623 83,572 Income before income taxes 2,561 (623) 1,938 Income tax (benefit) expense 173 (167) 6 Income from continuing operations 2,388 (456) 1,932 Net income 55,956 (456) 55,500 Comprehensive income 47,984 (456) 47,528 Net income per share, basic and diluted: Basic - Income from continuing operations $ 0.05 $ (0.01) $ 0.04 Basic - Net income per share $ 1.12 $ (0.01) $ 1.11 Diluted - Income from continuing operations $ 0.05 $ (0.01) $ 0.04 Diluted - Net income per share $ 1.12 $ (0.01) $ 1.11 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | Benefit Plan Obligations: The Benefit Plan Obligations caption includes the following: ($ in thousands) December 31, 2021 December 31, 2020 Pension Plan $ 2,393 $ 7,961 Postretirement Medical Benefits Plan 3,506 3,997 Supplemental executive retirement plan ("SERP") 2,317 2,687 Total $ 8,216 $ 14,645 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 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 for the years ended December 31, 2021, 2020 and 2019: (in thousands) Revenue: 2021 2020 2019 Service revenue and other $ 201,076 $ 401,035 $ 375,730 Equipment revenue 12,253 41,338 67,659 Total revenue 213,329 442,373 443,389 Operating expenses: Cost of services 38,144 116,394 128,482 Cost of goods sold 11,964 40,642 65,148 Selling, general and administrative 17,514 34,011 39,128 Severance expense 465 — — Depreciation and amortization — 62,930 111,467 Total operating expenses 68,087 253,977 344,225 Operating income 145,242 188,396 99,164 Other (expense) income: Debt extinguishment (11,032) — — Interest expense and other, net (9,178) (20,455) (29,286) Gain on sale of disposition of Wireless assets and operations 1,227,531 — — Income before income taxes 1,352,563 167,941 69,878 Income tax expense 361,661 43,844 16,310 Income from discontinued operations, net of tax $ 990,902 $ 124,097 $ 53,568 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Amortized and Capitalized Contract Cost | Below is a summary of the Broadband segment's capitalized contract acquisition costs: (in thousands) 2021 2020 Beginning Balance $ 7,358 $ 5,147 Commission payments 3,229 4,399 Contract amortization (2,440) (2,188) Ending Balance $ 8,147 $ 7,358 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Abstract] | |
Other Investments | Investments consist of the following: (in thousands) December 31, December 31, SERP Investments at fair value $ 2,317 $ 2,687 Cost method investments 11,004 10,536 Equity method investments 340 546 Total investments $ 13,661 $ 13,769 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following: ($ in thousands) Estimated Useful Lives December 31, December 31, Land $ 3,771 $ 3,909 Land improvements 10 years 3,478 2,910 Buildings and structures 10 - 45 years 96,323 91,335 Cable and fiber 15 - 30 years 453,405 390,209 Equipment and software 4 - 8 years 391,293 331,047 Plant in service 948,270 819,410 Plant under construction 79,963 49,417 Total property, plant and equipment 1,028,233 868,827 Less: accumulated amortization and depreciation 474,071 428,400 Property, plant and equipment, net $ 554,162 $ 440,427 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Resulting from Acquisition | The Company's intangible assets consisted of the following: December 31, 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 13,839 — 13,839 29,958 — 29,958 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 78,314 — 78,314 94,433 — 94,433 Finite-lived intangibles: FCC spectrum licenses 6,811 (672) 6,139 6,811 (340) 6,471 Subscriber relationships 28,425 (26,451) 1,974 28,425 (26,000) 2,425 Other intangibles 463 (303) 160 463 (277) 186 Total finite-lived intangibles 35,699 (27,426) 8,273 35,699 (26,617) 9,082 Total goodwill and intangible assets $ 117,257 $ (27,426) $ 89,831 $ 133,376 $ (26,617) $ 106,759 |
Schedule of Finite-Lived Intangible Assets | The Company's intangible assets consisted of the following: December 31, 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 13,839 — 13,839 29,958 — 29,958 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 78,314 — 78,314 94,433 — 94,433 Finite-lived intangibles: FCC spectrum licenses 6,811 (672) 6,139 6,811 (340) 6,471 Subscriber relationships 28,425 (26,451) 1,974 28,425 (26,000) 2,425 Other intangibles 463 (303) 160 463 (277) 186 Total finite-lived intangibles 35,699 (27,426) 8,273 35,699 (26,617) 9,082 Total goodwill and intangible assets $ 117,257 $ (27,426) $ 89,831 $ 133,376 $ (26,617) $ 106,759 |
Schedule of Finite Lived Intangible Assets, Amortization, Estimated Useful Lives | Our finite-lived intangible assets are amortized over the following estimated useful lives: Estimated Useful Life FCC spectrum licenses 18 - 30 years Subscriber relationships 3 - 10 years Other intangibles 15 - 20 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes expected amortization of intangible assets at December 31, 2021: (in thousands) Amortization of Intangible Assets 2022 $ 772 2023 772 2024 772 2025 768 2026 427 Thereafter 4,762 Total $ 8,273 |
Other Assets and Accrued Liab_2
Other Assets and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Assets | Prepaid expenses and other, classified as current assets, included the following: (in thousands) December 31, December 31, Deposit for FCC spectrum licenses $ 16,118 $ — Prepaid maintenance expenses 8,391 4,018 Broadband contract acquisition costs 2,502 2,308 SERP investments 801 — Other 2,018 1,196 Prepaid expenses and other $ 29,830 $ 7,522 |
Schedule of Other Assets, Noncurrent | Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) December 31, December 31, 2020 Broadband contract acquisition costs $ 5,645 $ 5,050 Prepaid expenses and other 4,653 1,398 Deferred charges and other assets $ 10,298 $ 6,448 |
Summary of Accrued Liabilities and Other | Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) December 31, 2021 December 31, 2020 Interest rate swaps $ — $ 4,048 Accrued programming costs 3,084 2,868 Sales and property taxes payable 1,065 1,072 Restructuring accrual 1,761 — Other current liabilities 8,739 5,881 Accrued liabilities and other $ 14,649 $ 13,869 |
Other Noncurrent Liabilities | Other liabilities, classified as long-term liabilities, included the following: (in thousands) December 31, December 31, 2020 Noncurrent portion of deferred lease revenue $ 19,749 $ 18,687 FCC spectrum license obligations 3,807 3,845 Noncurrent portion of financing leases 1,614 1,492 Other 461 881 Other liabilities $ 25,631 $ 24,905 |
Restructuring and Related Costs | The following table identifies severance activity that has occurred as a result of the plan: (in thousands) Year Ended Beginning Balance January 1, 2021 $ — Expense (1) 3,862 Payments (2) (2,101) Ending Balance - December 31, 2021 $ 1,761 _______________________________________________________ (1) For the year ended December 31, 2021, approximately $2.2 million of expense was recognized within discontinued operations and $1.7 million in continuing operations. (2) For the year ended December 31, 2021, approximately $1.4 million of payments were attributable to discontinued operations and $0.7 million in continued operations. |
Schedule of Change in Asset Retirement Obligation | Our asset retirement obligations ("ARO") arise from certain of our leases and generally require us to remove our towers from ground leases. The Company's estimates related to ARO were revised during 2021 resulting in recognition of an additional obligation of $4.3 million. Below is a summary of our current and non-current asset retirement obligations: Years Ended December 31, (in thousands) 2021 2020 2019 Balance at beginning of year $ 5,113 $ 6,152 $ 8,808 Additional liabilities accrued 4,334 262 593 Changes to prior estimates (44) (1,633) (3,659) Payments — — — Accretion expense 421 332 410 Balance at end of year $ 9,824 $ 5,113 $ 6,152 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Expected Maturity of Lease Liabilities, Operating | The following table summarizes the expected maturity of lease liabilities at December 31, 2021: (in thousands) Operating Leases Finance Leases Total 2022 $ 5,546 $ 180 $ 5,726 2023 5,159 182 5,341 2024 4,815 184 4,999 2025 4,636 186 4,822 2026 4,150 159 4,309 2027 and thereafter 65,909 1,503 67,412 Total lease payments 90,215 2,394 92,609 Less: Interest 35,205 696 35,901 Present value of lease liabilities $ 55,010 $ 1,698 $ 56,708 |
Expected Maturity of Lease Liabilities, Financing | The following table summarizes the expected maturity of lease liabilities at December 31, 2021: (in thousands) Operating Leases Finance Leases Total 2022 $ 5,546 $ 180 $ 5,726 2023 5,159 182 5,341 2024 4,815 184 4,999 2025 4,636 186 4,822 2026 4,150 159 4,309 2027 and thereafter 65,909 1,503 67,412 Total lease payments 90,215 2,394 92,609 Less: Interest 35,205 696 35,901 Present value of lease liabilities $ 55,010 $ 1,698 $ 56,708 |
Minimum Rental Receipts Under Lease Agreement Lessor, Operating Leases | Below is a summary of our contractual minimum rental receipts expected under the lease agreements in place at December 31, 2021: (in thousands) Operating Leases 2022 $ 14,460 2023 12,947 2024 12,083 2025 11,134 2026 8,198 2027 and thereafter 28,915 Total $ 87,737 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 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) (Losses) Gains on Income Tax Accumulated Balance as of December 31, 2020 $ (4,048) $ (658) $ (4,706) Other comprehensive income (loss) before reclassifications 1,447 (361) 1,086 Amounts reclassified from accumulated other comprehensive income (loss) to interest expense 2,601 1,019 3,620 Net current period other comprehensive (loss) income 4,048 658 4,706 Balance as of December 31, 2021 $ — $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Federal and State Income Taxes | The provision for the federal and state income taxes attributable to income (loss) consists of the following components: Years Ended December 31, (in thousands) 2021 2020 2019 Current (benefit) expense Federal taxes $ (21,392) $ (13,748) $ (16,393) State taxes (2,565) (2,148) (282) Total current provision (23,957) (15,896) (16,675) Deferred expense (benefit) Federal taxes 25,518 13,325 16,286 State taxes (3,255) 1,581 395 Total deferred provision 22,263 14,906 16,681 Income tax (benefit) expense $ (1,694) $ (990) $ 6 Effective tax rate (27.2) % (168.9) % 0.3 % |
Reconciliation of Income Taxes | A reconciliation of income tax expense (benefit) determined by applying the federal and state tax rates to income before income taxes is as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Expected tax expense at federal statutory $ 1,310 $ 24 $ 371 State income taxes, net of federal tax effect 438 54 15 Revaluation of deferred tax liabilities (5,206) — — Stranded tax effects reclassified from other comprehensive income 1,620 — — Excess tax benefit from share based compensation and other expense, net 144 (1,068) (380) Income tax (benefit) expense $ (1,694) $ (990) $ 6 |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply in the year of reversal or settlement and arise from temporary differences between the US GAAP and tax bases of the following assets and liabilities: (in thousands) December 31, December 31, Deferred tax assets: Leases $ 15,483 $ 123,129 Asset retirement obligations 2,581 10,403 Net operating loss carry-forwards 5,878 7,723 Pension liabilities 2,148 3,868 Accruals and stock based compensation 2,572 3,093 Other 6,300 5,002 Total gross deferred tax assets 34,962 153,218 Less valuation allowance — — Net deferred tax assets 34,962 153,218 Deferred tax liabilities: Property, plant and equipment 92,449 127,602 Leases 15,410 126,458 Intangible assets 10,710 25,722 Prepaid assets and other 2,407 22,120 Total gross deferred tax liabilities 120,976 301,902 Net deferred tax liabilities $ 86,014 $ 148,684 |
Stock Compensation, Earnings _2
Stock Compensation, Earnings per Share, and Dividends (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock compensation expense | Stock-based compensation expense was as follows: Years Ended December 31, (in thousands) 2021 2020 2019 Stock compensation expense $ 3,552 $ 6,227 $ 3,732 Capitalized stock compensation 144 320 365 Stock compensation expense, net $ 3,408 $ 5,907 $ 3,367 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table indicates the computation of basic and diluted earnings per share: Years Ended December 31, (in thousands, except per share amounts) 2021 2020 2019 Calculation of net income per share: Income from continuing operations $ 7,929 $ 1,576 $ 1,932 Income from discontinued operations, net of tax $ 990,902 $ 124,097 $ 53,568 Net income $ 998,831 $ 125,673 $ 55,500 Basic weighted average shares outstanding 50,026 49,901 49,811 Basic net income per share - continuing operations $ 0.16 $ 0.03 $ 0.04 Basic net income per share - discontinued operations $ 19.81 $ 2.49 $ 1.07 Basic net income per share $ 19.97 $ 2.52 $ 1.11 Effect of stock-based compensation awards outstanding: Basic weighted average shares outstanding 50,026 49,901 49,811 Effect from dilutive shares and options outstanding 123 123 290 Diluted weighted average shares outstanding 50,149 50,024 50,101 Diluted net income per share - continuing operations $ 0.16 $ 0.03 $ 0.04 Diluted net income per share - discontinued operations $ 19.76 $ 2.48 $ 1.07 Diluted net income per share $ 19.92 $ 2.51 $ 1.11 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | The Company is obligated to make the following future minimum payments under the non-cancelable terms of these commitments as of December 31, 2021: (in thousands) Purchase Commitments 2022 $ 3,658 2023 2,410 2024 1,385 2025 840 2026 190 2027 and thereafter 109 Total $ 8,592 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 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. Intercompany revenue is primarily derived from services provided to the discontinued operation, for periods prior to the divestiture. Year ended December 31, 2021: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 177,530 $ — $ — $ 177,530 Commercial Fiber 30,842 — — 30,842 RLEC & Other 15,249 — — 15,249 Tower lease — 12,393 — 12,393 Service revenue and other 223,621 12,393 — 236,014 Revenue for service provided to the discontinued Wireless operations 4,459 5,311 (545) 9,225 Total revenue 228,080 17,704 (545) 245,239 Operating expenses Cost of services 97,283 5,438 (422) 102,299 Selling, general and administrative 47,840 1,197 33,414 82,451 Restructuring expense 202 — 1,525 1,727 Impairment expense 5,986 — — 5,986 Depreciation and amortization 47,937 2,053 5,216 55,206 Total operating expenses 199,248 8,688 39,733 247,669 Operating income (loss) $ 28,832 $ 9,016 $ (40,278) $ (2,430) Capital expenditures $ 156,131 $ 977 $ 2,993 $ 160,101 Year ended December 31, 2020: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 154,956 $ — $ — $ 154,956 Commercial Fiber 24,431 — — 24,431 RLEC & Other 15,971 — — 15,971 Tower lease — 7,402 — 7,402 Service revenue and other 195,358 7,402 — 202,760 Revenue for service provided to the discontinued Wireless operations 8,989 9,653 (627) 18,015 Total revenue 204,347 17,055 (627) 220,775 Operating expenses Cost of services 84,893 4,896 (132) 89,657 Selling, general and administrative 39,472 1,430 44,114 85,016 Depreciation and amortization 41,076 1,906 5,721 48,703 Total operating expenses 165,441 8,232 49,703 223,376 Operating income (loss) $ 38,906 $ 8,823 $ (50,330) $ (2,601) Capital expenditures $ 117,246 $ 2,001 $ 1,203 $ 120,450 Year ended December 31, 2019: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 142,290 $ — $ — $ 142,290 Commercial Fiber 23,004 — — 23,004 RLEC & Other 18,257 — — 18,257 Tower lease — 6,965 — 6,965 Service revenue and other 183,551 6,965 — 190,516 Revenue for service provided to the discontinued Wireless operations 10,392 6,020 (66) 16,346 Total revenue 193,943 12,985 (66) 206,862 Operating expenses Cost of services 79,858 3,777 (63) 83,572 Selling, general and administrative 33,545 937 43,364 77,846 Depreciation and amortization 38,566 1,976 6,244 46,786 Total operating expenses 151,969 6,690 49,545 208,204 Operating income (loss) $ 41,974 $ 6,295 $ (49,611) $ (1,342) Capital expenditures $ 60,627 $ 921 $ 5,500 $ 67,048 |
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: Years Ended December 31, (in thousands) 2021 2020 2019 Total consolidated operating loss $ (2,430) $ (2,601) $ (1,342) Other income, net 8,665 3,187 3,280 Income from continuing operations before income taxes $ 6,235 $ 586 $ 1,938 |
Quarterly Results (unaudited) (
Quarterly Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table reflects selected quarterly results for the Company. Amounts were adjusted from their previous presentation as a result of the error correction discussed in Note 1. Three Months Ended (in thousands, except per share data) March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 Revenue $ 59,691 $ 60,700 $ 62,244 $ 62,604 Operating income (loss) 2,230 2,390 851 (7,901) Income (loss) from continuing operations 2,945 1,626 6,495 (3,137) Income (loss) from discontinued operations, net of tax 48,472 51,566 (406) (4,965) Gain on the sale of discontinued operations, net of tax — — 886,732 9,503 Net income 51,417 53,192 892,821 1,401 Basic - Income (loss) from continuing operations $ 0.06 $ 0.03 $ 0.13 $ (0.06) Basic - Income from discontinued operations, net of tax $ 0.97 $ 1.04 $ 17.73 $ 0.09 Basic net income per share $ 1.03 $ 1.07 $ 17.86 $ 0.03 Diluted - Income (loss) from continuing operations $ 0.06 $ 0.03 $ 0.13 $ (0.06) Diluted - Income from discontinued operations, net of tax $ 0.97 $ 1.03 $ 17.68 $ 0.09 Diluted net income per share $ 1.03 $ 1.06 $ 17.81 $ 0.03 Three Months Ended (in thousands except per share data) March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Revenue $ 53,134 $ 54,336 $ 55,173 $ 58,132 Operating income (loss) (1,648) (2,361) (121) 1,529 Income (loss) from continuing operations (55) (893) 985 1,539 Income from discontinued operations, net of tax 13,129 29,784 33,509 47,675 Net income 13,074 28,891 34,494 49,214 Basic - Income (loss) from continuing operations $ — $ (0.02) $ 0.02 $ 0.03 Basic - Income from discontinued operations, net of tax $ 0.26 $ 0.60 $ 0.67 $ 0.96 Basic net income per share $ 0.26 $ 0.58 $ 0.69 $ 0.99 Diluted - Income (loss) from continuing operations $ — $ (0.02) $ 0.02 $ 0.03 Diluted - Income from discontinued operations, net of tax $ 0.26 $ 0.60 $ 0.67 $ 0.95 Diluted net income per share $ 0.26 $ 0.58 $ 0.69 $ 0.98 |
Nature of Operations - Narrativ
Nature of Operations - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021cell_site | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of cell towers built | 223 |
Nature of Operations - Revision
Nature of Operations - Revision of Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Prepaid expenses and other | $ 29,830 | $ 7,522 | $ 29,830 | $ 7,522 | $ 8,668 | |||||||
Deferred charges and other assets | 10,298 | 6,448 | 10,298 | 6,448 | 5,918 | |||||||
Deferred income taxes | 86,014 | 148,684 | 86,014 | 148,684 | 136,002 | |||||||
Retained earnings | 592,924 | 534,440 | 592,924 | 534,440 | 425,716 | $ 384,658 | ||||||
Cost of services | 102,299 | 89,657 | 83,572 | |||||||||
Income from continuing operations before income taxes | 6,235 | 586 | 1,938 | |||||||||
Income tax (benefit) expense | (1,694) | (990) | 6 | |||||||||
Income from continuing operations | (3,137) | $ 6,495 | $ 1,626 | $ 2,945 | 1,539 | $ 985 | $ (893) | $ (55) | 7,929 | 1,576 | 1,932 | |
Net income | $ 1,401 | $ 892,821 | $ 53,192 | $ 51,417 | $ 49,214 | $ 34,494 | $ 28,891 | $ 13,074 | 998,831 | 125,673 | 55,500 | |
Comprehensive income | $ 1,003,537 | $ 120,659 | $ 47,528 | |||||||||
Basic - Income from continuing operations (in dollars per share) | $ (0.06) | $ 0.13 | $ 0.03 | $ 0.06 | $ 0.03 | $ 0.02 | $ (0.02) | $ 0 | $ 0.16 | $ 0.03 | $ 0.04 | |
Basic - Net income from continuing operations (in dollars per share) | 0.03 | 17.86 | 1.07 | 1.03 | 0.99 | 0.69 | 0.58 | 0.26 | 19.97 | 2.52 | 1.11 | |
Diluted - Income from continuing operations (in dollars per share) | (0.06) | 0.13 | 0.03 | 0.06 | 0.03 | 0.02 | (0.02) | 0 | 0.16 | 0.03 | 0.04 | |
Diluted income per share (in dollars per share) | $ 0.03 | $ 17.81 | $ 1.06 | $ 1.03 | $ 0.98 | $ 0.69 | $ 0.58 | $ 0.26 | $ 19.92 | $ 2.51 | $ 1.11 | |
Pre-Adjustment | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Prepaid expenses and other | $ 9,631 | $ 9,631 | $ 11,178 | |||||||||
Deferred charges and other assets | 11,650 | 11,650 | 9,267 | |||||||||
Deferred income taxes | 150,652 | 150,652 | 137,567 | |||||||||
Retained earnings | 539,783 | 539,783 | 430,010 | 388,496 | ||||||||
Cost of services | 88,203 | 82,949 | ||||||||||
Income from continuing operations before income taxes | 2,040 | 2,561 | ||||||||||
Income tax (benefit) expense | (586) | 173 | ||||||||||
Income from continuing operations | 2,626 | 2,388 | ||||||||||
Net income | 126,723 | 55,956 | ||||||||||
Comprehensive income | $ 121,709 | $ 47,984 | ||||||||||
Basic - Income from continuing operations (in dollars per share) | $ 0.05 | $ 0.05 | ||||||||||
Basic - Net income from continuing operations (in dollars per share) | 2.54 | 1.12 | ||||||||||
Diluted - Income from continuing operations (in dollars per share) | 0.05 | 0.05 | ||||||||||
Diluted income per share (in dollars per share) | $ 2.53 | $ 1.12 | ||||||||||
Error Correction | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Prepaid expenses and other | (2,109) | $ (2,109) | $ (2,510) | |||||||||
Deferred charges and other assets | (5,202) | (5,202) | (3,349) | |||||||||
Deferred income taxes | (1,968) | (1,968) | (1,565) | |||||||||
Retained earnings | $ (5,343) | (5,343) | (4,294) | $ (3,838) | ||||||||
Cost of services | 1,454 | 623 | ||||||||||
Income from continuing operations before income taxes | (1,454) | (623) | ||||||||||
Income tax (benefit) expense | (404) | (167) | ||||||||||
Income from continuing operations | (1,050) | (456) | ||||||||||
Net income | (1,050) | (456) | ||||||||||
Comprehensive income | $ (1,050) | $ (456) | ||||||||||
Basic - Income from continuing operations (in dollars per share) | $ (0.02) | $ (0.01) | ||||||||||
Basic - Net income from continuing operations (in dollars per share) | (0.02) | (0.01) | ||||||||||
Diluted - Income from continuing operations (in dollars per share) | (0.02) | (0.01) | ||||||||||
Diluted income per share (in dollars per share) | $ (0.02) | $ (0.01) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Advertising expense | $ 4,400 | $ 2,700 | $ 3,500 |
Fair value of projected benefit obligations | 8,216 | 14,645 | |
Pension Plan | |||
Finite-Lived Intangible Assets [Line Items] | |||
Fair value of projected benefit obligations | 2,393 | 7,961 | |
Ntelos Holding, Corp | Pension Plan | |||
Finite-Lived Intangible Assets [Line Items] | |||
Fair value of pension plan assets | 31,100 | 27,000 | |
Fair value of projected benefit obligations | $ 33,500 | $ 34,900 | |
Discount rate (as a percent) | 2.74% | 2.41% | |
Ntelos Pension Plan | |||
Finite-Lived Intangible Assets [Line Items] | |||
Pension benefits, vesting period | 5 years | ||
Vesting reductions, threshold age of recipient | 65 years | ||
Postretirement Medical Benefits Plan | |||
Finite-Lived Intangible Assets [Line Items] | |||
Fair value of projected benefit obligations | $ 3,506 | $ 3,997 | |
Discount rate (as a percent) | 2.70% | 2.32% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Benefit Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of projected benefit obligations | $ 8,216 | $ 14,645 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of projected benefit obligations | 2,393 | 7,961 |
Postretirement Medical Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of projected benefit obligations | 3,506 | 3,997 |
Supplemental executive retirement plan ("SERP") | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of projected benefit obligations | $ 2,317 | $ 2,687 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | Aug. 26, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | 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 | $ 21,200 | ||||
Debt extinguishment | 11,000 | ||||
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 | $ 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 | Dec. 31, 2021 | Dec. 31, 2020 |
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 | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other (expense) income: | ||||||||
Debt extinguishment | $ (11,000) | |||||||
Income from discontinued operations, net of tax | $ (4,965) | $ (406) | $ 51,566 | $ 48,472 | ||||
Discontinued Operations, Held-for-sale | ||||||||
Revenue: | ||||||||
Revenue | $ 10,200 | 213,329 | $ 442,373 | $ 443,389 | ||||
Operating expenses | ||||||||
Selling, general and administrative | 17,514 | 34,011 | 39,128 | |||||
Severance expense | 465 | 0 | 0 | |||||
Depreciation and amortization | 0 | 62,930 | 111,467 | |||||
Total operating expenses | 68,087 | 253,977 | 344,225 | |||||
Operating income | 145,242 | 188,396 | 99,164 | |||||
Other (expense) income: | ||||||||
Debt extinguishment | (11,032) | 0 | 0 | |||||
Interest expense and other, net | (9,178) | (20,455) | (29,286) | |||||
Income before income taxes | 1,352,563 | 167,941 | 69,878 | |||||
Income tax expense | 361,661 | 43,844 | 16,310 | |||||
Income from discontinued operations, net of tax | 990,902 | 124,097 | 53,568 | |||||
Discontinued Operations, Held-for-sale | Service revenue and other | ||||||||
Revenue: | ||||||||
Revenue | 201,076 | 401,035 | 375,730 | |||||
Discontinued Operations, Held-for-sale | Equipment revenue | ||||||||
Revenue: | ||||||||
Revenue | 12,253 | 41,338 | 67,659 | |||||
Discontinued Operations, Held-for-sale | Cost of services | ||||||||
Operating expenses | ||||||||
Cost of services and cost of goods sold | 38,144 | 116,394 | 128,482 | |||||
Discontinued Operations, Held-for-sale | Cost of goods sold | ||||||||
Operating expenses | ||||||||
Cost of services and cost of goods sold | 11,964 | 40,642 | 65,148 | |||||
Discontinued Operations, Disposed of by Sale | ||||||||
Other (expense) income: | ||||||||
Gain on sale of disposition of Wireless assets and operations | $ 1,227,531 | $ 0 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Weighted average customer life | 6 years |
Remaining performance obligations | $ 3.5 |
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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Capitalized Contract Cost [Roll Forward] | ||
Beginning Balance | $ 7,358 | $ 5,147 |
Commission payments | 3,229 | 4,399 |
Contract amortization | (2,440) | (2,188) |
Ending Balance | $ 8,147 | $ 7,358 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments [Abstract] | ||
SERP Investments at fair value | $ 2,317 | $ 2,687 |
Cost method investments | 11,004 | 10,536 |
Equity method investments | 340 | 546 |
Total investments | $ 13,661 | $ 13,769 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
SERP Investments at fair value | $ 2,317 | $ 2,687 | |
CoBank | |||
Schedule of Equity Method Investments [Line Items] | |||
SERP Investments at fair value | 10,300 | 9,800 | |
Other nonoperating income (expense) | $ 2,000 | 4,200 | $ 4,200 |
Percentage of patronage credit paid in cash | 75.00% | ||
Percentage of patronage credit paid in share | 25.00% | ||
Valley Network Partnership | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest, percentage | 20.00% | ||
Equity Method Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue from related parties | $ 700 | 900 | 1,000 |
Related party costs | $ 1,200 | $ 2,700 | $ 3,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 1,028,233 | $ 1,028,233 | $ 868,827 |
Less: accumulated amortization and depreciation | 474,071 | 474,071 | 428,400 |
Property, plant and equipment, net | 554,162 | 554,162 | 440,427 |
Property, plant and equipment impairment charges | 6,000 | ||
Land | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 3,771 | $ 3,771 | 3,909 |
Land improvements | |||
Property, plant and equipment [Abstract] | |||
Estimated useful lives | 10 years | ||
Total property, plant and equipment | 3,478 | $ 3,478 | 2,910 |
Buildings and structures | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 96,323 | $ 96,323 | 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 | 45 years | ||
Cable and fiber | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | 453,405 | $ 453,405 | 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 | 391,293 | $ 391,293 | 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 | 948,270 | $ 948,270 | 819,410 |
Plant under construction | |||
Property, plant and equipment [Abstract] | |||
Total property, plant and equipment | $ 79,963 | $ 79,963 | $ 49,417 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | $ 78,314 | $ 94,433 |
Gross carrying amount | 35,699 | 35,699 |
Accumulated amortization and other | (27,426) | (26,617) |
Total | 8,273 | 9,082 |
Total intangible assets, gross carrying amount | 117,257 | 133,376 |
Intangible assets, net | 89,831 | 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 | (672) | (340) |
Total | 6,139 | 6,471 |
Subscriber relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 28,425 | 28,425 |
Accumulated amortization and other | (26,451) | (26,000) |
Total | 1,974 | 2,425 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 463 | 463 |
Accumulated amortization and other | (303) | (277) |
Total | 160 | 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 | 13,839 | 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) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Dec. 31, 2021USD ($)market | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Business Acquisition [Line Items] | ||||
Amortization expense | $ 0.8 | $ 0.7 | $ 0.5 | |
FCC spectrum licenses | ||||
Business Acquisition [Line Items] | ||||
Indefinite-lived intangible assets acquired | $ 16.1 | $ 16.1 | ||
Number of markets included in transaction | market | 15 | |||
Indefinite-lived intangible assets, cost basis of assets included in transaction | $ 4.5 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Useful Life (Details) | 12 Months Ended |
Dec. 31, 2021 | |
FCC spectrum licenses | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 18 years |
FCC spectrum licenses | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 30 years |
Subscriber relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 3 years |
Subscriber relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 10 years |
Other intangibles | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 15 years |
Other intangibles | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 20 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets Goodwill and Intangible Assets - Amortization Expense for Intangible Assets (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 772 |
2023 | 772 |
2024 | 772 |
2025 | 768 |
2026 | 427 |
Thereafter | 4,762 |
Total | $ 8,273 |
Other Assets and Accrued Liab_3
Other Assets and Accrued Liabilities - Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | |||
FCC spectrum license obligations | $ 16,118 | $ 0 | |
Prepaid maintenance expenses | 8,391 | 4,018 | |
Broadband contract acquisition costs | 2,502 | 2,308 | |
SERP Investments, Current | 801 | 0 | |
Other | 2,018 | 1,196 | |
Prepaid expenses and other | $ 29,830 | $ 7,522 | $ 8,668 |
Other Assets and Accrued Liab_4
Other Assets and Accrued Liabilities - Long-Term Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | |||
Broadband contract acquisition costs | $ 5,645 | $ 5,050 | |
Prepaid expenses and other | 4,653 | 1,398 | |
Deferred charges and other assets | $ 10,298 | $ 6,448 | $ 5,918 |
Other Assets and Accrued Liab_5
Other Assets and Accrued Liabilities - Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Interest rate swaps | $ 0 | $ 4,048 |
Accrued programming costs | 3,084 | 2,868 |
Sales and property taxes payable | 1,065 | 1,072 |
Restructuring Reserve, Current | 1,761 | 0 |
Other current liabilities | 8,739 | 5,881 |
Accrued liabilities and other | $ 14,649 | $ 13,869 |
Other Assets and Accrued Liab_6
Other Assets and Accrued Liabilities - Long Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Noncurrent portion of deferred lease revenue | $ 19,749 | $ 18,687 |
FCC spectrum license obligations | $ 3,807 | $ 3,845 |
Finance lease, liability, noncurrent, statement of financial position [extensible enumeration] | Other liabilities | Other liabilities |
Noncurrent portion of financing leases | $ 1,614 | $ 1,492 |
Other | 461 | 881 |
Other liabilities | $ 25,631 | $ 24,905 |
Other Assets and Accrued Liab_7
Other Assets and Accrued Liabilities - Restructuring Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Expense | $ 1,727 | $ 0 | $ 0 |
Workforce Reduction Program | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Expense | 3,862 | ||
Payments | (2,101) | ||
Ending balance | 1,761 | $ 0 | |
Workforce Reduction Program | Discontinued Operations | |||
Restructuring Reserve [Roll Forward] | |||
Expense | 2,200 | ||
Payments | (1,400) | ||
Workforce Reduction Program | Continuing Operations | |||
Restructuring Reserve [Roll Forward] | |||
Expense | 1,700 | ||
Payments | $ (700) |
Other Assets and Accrued Liab_8
Other Assets and Accrued Liabilities - Asset Removal Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Balance at beginning of year | $ 5,113 | $ 6,152 | $ 8,808 |
Additional liabilities accrued | 4,334 | 262 | 593 |
Changes to prior estimates | (44) | (1,633) | (3,659) |
Payments | 0 | 0 | 0 |
Accretion expense | 421 | 332 | 410 |
Balance at end of year | $ 9,824 | $ 5,113 | $ 6,152 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term | 20 years | |
Operating lease, weighted average discount rate, percent | 4.40% | |
Finance lease, weighted average remaining lease term | 14 years | |
Finance lease, weighted average discount rate, percent | 5.20% | |
Operating lease, cost | $ 7.1 | |
Finance lease, cost | 0.6 | |
Operating lease, payments | 5.6 | |
Right-of-use asset obtained in exchange for operating lease liability | 11.1 | $ 6.8 |
Sublease income | $ 11.1 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liability - Lessee (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Leases | |
2022 | $ 5,546 |
2023 | 5,159 |
2024 | 4,815 |
2025 | 4,636 |
2026 | 4,150 |
2027 and thereafter | 65,909 |
Total lease payments | 90,215 |
Less: Interest | 35,205 |
Present value of lease liabilities | 55,010 |
Finance Leases | |
2022 | 180 |
2023 | 182 |
2024 | 184 |
2025 | 186 |
2026 | 159 |
2027 and thereafter | 1,503 |
Total lease payments | 2,394 |
Less: Interest | 696 |
Present value of lease liabilities | 1,698 |
Total | |
2022 | 5,726 |
2023 | 5,341 |
2024 | 4,999 |
2025 | 4,822 |
2026 | 4,309 |
2027 and thereafter | 67,412 |
Total lease payments | 92,609 |
Less: Interest | 35,901 |
Present value of lease liabilities | $ 56,708 |
Leases - Maturity of Lease Li_2
Leases - Maturity of Lease Liability - Lessor (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 14,460 |
2023 | 12,947 |
2024 | 12,083 |
2025 | 11,134 |
2026 | 8,198 |
2027 and thereafter | 28,915 |
Total | $ 87,737 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jul. 01, 2021USD ($)facility | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |||
Interest payments | $ 10,400,000 | $ 18,600,000 | |
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] | |||
Number of credit facilities | facility | 3 | ||
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 | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Payments for Derivative Instrument, Financing Activities | $ 2.6 |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
(Losses) Gains on Cash Flow Hedges | |||
Balance as of December 31, 2020 | $ (4,048) | ||
Other comprehensive income (loss) before reclassifications | 1,447 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense | 2,601 | ||
Net current period other comprehensive (loss) income | 4,048 | ||
Balance as of December 31, 2021 | 0 | $ (4,048) | |
Income Tax (Expense) Benefit | |||
Balance as of December 31, 2020 | 658 | ||
Other comprehensive income (loss) before reclassifications | (361) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense | (1,019) | ||
Net current period other comprehensive (loss) income | 658 | ||
Balance as of December 31, 2021 | 0 | 658 | |
Accumulated Other Comprehensive (Loss) Income, net of taxes | |||
Balance as of December 31, 2020 | (4,706) | ||
Other comprehensive income (loss) before reclassifications | 1,086 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense | 3,620 | ||
Net current period other comprehensive (loss) income | 4,706 | (5,014) | $ (7,972) |
Balance as of December 31, 2021 | $ 0 | $ (4,706) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Cash paid for income taxes | $ 459,100,000 | |
Disposal Group, Including Discontinued Operation, Liabilities | 434,300,000 | |
Proceeds from income tax refunds | $ 11,200,000 | |
Deferred tax assets, operating loss carryforwards, state and local | 5,878,000 | 7,723,000 |
Unrecognized tax benefits | 0 | $ 0 |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 27,800,000 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 300,000 |
Income Taxes - Components of Fe
Income Taxes - Components of Federal and State Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current (benefit) expense | |||
Federal taxes | $ (21,392) | $ (13,748) | $ (16,393) |
State taxes | (2,565) | (2,148) | (282) |
Total current provision | (23,957) | (15,896) | (16,675) |
Deferred expense (benefit) | |||
Federal taxes | 25,518 | 13,325 | 16,286 |
State taxes | (3,255) | 1,581 | 395 |
Total deferred provision | 22,263 | 14,906 | 16,681 |
Income tax (benefit) expense | $ (1,694) | $ (990) | $ 6 |
Effective tax rate | (27.20%) | (168.90%) | 0.30% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Expected tax expense at federal statutory | $ 1,310 | $ 24 | $ 371 |
State income taxes, net of federal tax effect | 438 | 54 | 15 |
Revaluation of deferred tax liabilities | (5,206) | 0 | 0 |
Stranded tax effects reclassified from other comprehensive income | 1,620 | 0 | 0 |
Excess tax benefit from share based compensation and other expense, net | 144 | (1,068) | (380) |
Income tax (benefit) expense | $ (1,694) | $ (990) | $ 6 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Leases | $ 15,483 | $ 123,129 |
Asset retirement obligations | 2,581 | 10,403 |
Net operating loss carry-forwards | 5,878 | 7,723 |
Pension liabilities | 2,148 | 3,868 |
Accruals and stock based compensation | 2,572 | 3,093 |
Other | 6,300 | 5,002 |
Total gross deferred tax assets | 34,962 | 153,218 |
Less valuation allowance | 0 | 0 |
Net deferred tax assets | 34,962 | 153,218 |
Deferred tax liabilities: | ||
Property, plant and equipment | 92,449 | 127,602 |
Leases | 15,410 | 126,458 |
Intangible assets | 10,710 | 25,722 |
Prepaid assets and other | 2,407 | 22,120 |
Total gross deferred tax liabilities | 120,976 | 301,902 |
Net deferred tax liabilities | $ 86,014 | $ 148,684 |
Stock Compensation, Earnings _3
Stock Compensation, Earnings per Share, and Dividends- Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 01, 2021 | Oct. 27, 2021 | Aug. 04, 2021 | Aug. 02, 2021 | Jul. 02, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Cash dividend declared per share (in dollars per share) | $ 0.07 | $ 18.75 | $ 18.82 | $ 0.34 | $ 0.29 | |||
Compensation, nonvested awards, compensation cost not yet recognized | $ 5.9 | |||||||
Compensation, nonvested awards, cost not yet recognized, period for recognition | 1 year 9 months 18 days | |||||||
Anti-dilutive awards outstanding (fewer than) (in shares) | 259,000 | 110,000 | 110,000 | |||||
Dividends payout | $ 3 | $ 937 | ||||||
The 2014 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Additional number of shares authorized for issuance (in shares) | 3,000,000 | |||||||
Restricted Stock Units (RSUs) | The 2014 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expiration period | 10 years | |||||||
Restricted Stock Units (RSUs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 1 year | |||||||
Restricted Stock Units (RSUs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 4 years | |||||||
Restricted Stock Units (RSUs) | Employees And Directors | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 200,000 | |||||||
Granted (in dollars per share) | $ 28.99 | |||||||
Relative Total Shareholder Return Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Relative Total Shareholder Return Awards | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares issued (as a percent) | 0.00% | |||||||
Relative Total Shareholder Return Awards | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares issued (as a percent) | 150.00% | |||||||
Relative Total Shareholder Return Awards | Employees And Directors | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 59,000 | |||||||
Granted (in dollars per share) | $ 34.05 | |||||||
RSUs and RTSRs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares, issued (in shares) | 81,000 |
Earnings per Share & Stock Comp
Earnings per Share & Stock Compensation - Schedule of Stock Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Stock compensation expense | $ 3,552 | $ 6,227 | $ 3,732 |
Capitalized stock compensation | 144 | 320 | 365 |
Stock compensation expense, net | $ 3,408 | $ 5,907 | $ 3,367 |
Stock Compensation, Earnings _4
Stock Compensation, Earnings per Share, and Dividends - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||||||||||
Income from continuing operations | $ (3,137) | $ 6,495 | $ 1,626 | $ 2,945 | $ 1,539 | $ 985 | $ (893) | $ (55) | $ 7,929 | $ 1,576 | $ 1,932 |
Total income from discontinued operations, net of tax | 47,675 | 33,509 | 29,784 | 13,129 | 990,902 | 124,097 | 53,568 | ||||
Net income | $ 1,401 | $ 892,821 | $ 53,192 | $ 51,417 | $ 49,214 | $ 34,494 | $ 28,891 | $ 13,074 | $ 998,831 | $ 125,673 | $ 55,500 |
Basic weighted average shares outstanding (in shares) | 50,026 | 49,901 | 49,811 | ||||||||
Basic net income per share - continuing operations (in dollars per share) | $ (0.06) | $ 0.13 | $ 0.03 | $ 0.06 | $ 0.03 | $ 0.02 | $ (0.02) | $ 0 | $ 0.16 | $ 0.03 | $ 0.04 |
Basic net income per share - discontinued operations (in dollars per share) | 0.09 | 17.73 | 1.04 | 0.97 | 0.96 | 0.67 | 0.60 | 0.26 | 19.81 | 2.49 | 1.07 |
Basic net income per share (in dollars per share) | 0.03 | 17.86 | 1.07 | 1.03 | 0.99 | 0.69 | 0.58 | 0.26 | $ 19.97 | $ 2.52 | $ 1.11 |
Effect from dilutive shares and options outstanding (in shares) | 123 | 123 | 290 | ||||||||
Weighted average shares outstanding, diluted (in shares) | 50,149 | 50,024 | 50,101 | ||||||||
Diluted net income per share - continuing operations (in dollars per share) | (0.06) | 0.13 | 0.03 | 0.06 | 0.03 | 0.02 | (0.02) | 0 | $ 0.16 | $ 0.03 | $ 0.04 |
Diluted net income per share - discontinued operations (in dollars per share) | 0.09 | 17.68 | 1.03 | 0.97 | 0.95 | 0.67 | 0.60 | 0.26 | 19.76 | 2.48 | 1.07 |
Diluted net income per share (in dollars per share) | $ 0.03 | $ 17.81 | $ 1.06 | $ 1.03 | $ 0.98 | $ 0.69 | $ 0.58 | $ 0.26 | $ 19.92 | $ 2.51 | $ 1.11 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Marketing Services and IT Softeware Licences | |||
Other Commitments [Line Items] | |||
Payments For Long-Term Purchase Commitment | $ 3.4 | $ 1.4 | $ 0.5 |
FCC spectrum licenses | |||
Other Commitments [Line Items] | |||
Payments For Long-Term Purchase Commitment | $ 0.1 | $ 0.1 | $ 0.1 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Purchase Commitments | |
2022 | $ 3,658 |
2023 | 2,410 |
2024 | 1,385 |
2025 | 840 |
2026 | 190 |
2027 and thereafter | 109 |
Total | $ 8,592 |
Segment Reporting - Selected Fi
Segment Reporting - Selected Financial Data for Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
External revenue | |||||||||||
Service revenue and other | $ 62,604 | $ 62,244 | $ 60,700 | $ 59,691 | $ 58,132 | $ 55,173 | $ 54,336 | $ 53,134 | $ 245,239 | $ 220,775 | $ 206,862 |
Operating expenses | |||||||||||
Cost of services | 102,299 | 89,657 | 83,572 | ||||||||
Selling, general and administrative | 82,451 | 85,016 | 77,846 | ||||||||
Restructuring expense | 1,727 | 0 | 0 | ||||||||
Impairment expense | 5,986 | 0 | 0 | ||||||||
Depreciation and amortization | 55,206 | 48,703 | 46,786 | ||||||||
Operating loss | $ (7,901) | $ 851 | $ 2,390 | $ 2,230 | $ 1,529 | $ (121) | $ (2,361) | $ (1,648) | (2,430) | (2,601) | (1,342) |
Capital expenditures | 160,101 | 120,450 | 67,048 | ||||||||
Operating Segments | |||||||||||
Operating expenses | |||||||||||
Selling, general and administrative | 82,451 | 85,016 | 77,846 | ||||||||
Restructuring expense | 1,727 | ||||||||||
Impairment expense | 5,986 | ||||||||||
Depreciation and amortization | 55,206 | 48,703 | 46,786 | ||||||||
Total operating expenses | 247,669 | 223,376 | 208,204 | ||||||||
Operating loss | (2,430) | (2,601) | (1,342) | ||||||||
Capital expenditures | 160,101 | 120,450 | 67,048 | ||||||||
Operating Segments | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 228,080 | 204,347 | 193,943 | ||||||||
Operating expenses | |||||||||||
Selling, general and administrative | 47,840 | 39,472 | 33,545 | ||||||||
Restructuring expense | 202 | ||||||||||
Impairment expense | 5,986 | ||||||||||
Depreciation and amortization | 47,937 | 41,076 | 38,566 | ||||||||
Total operating expenses | 199,248 | 165,441 | 151,969 | ||||||||
Operating loss | 28,832 | 38,906 | 41,974 | ||||||||
Capital expenditures | 156,131 | 117,246 | 60,627 | ||||||||
Operating Segments | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 17,704 | 17,055 | 12,985 | ||||||||
Operating expenses | |||||||||||
Selling, general and administrative | 1,197 | 1,430 | 937 | ||||||||
Restructuring expense | 0 | ||||||||||
Impairment expense | 0 | ||||||||||
Depreciation and amortization | 2,053 | 1,906 | 1,976 | ||||||||
Total operating expenses | 8,688 | 8,232 | 6,690 | ||||||||
Operating loss | 9,016 | 8,823 | 6,295 | ||||||||
Capital expenditures | 977 | 2,001 | 921 | ||||||||
Intersegment Eliminations | |||||||||||
External revenue | |||||||||||
Service revenue and other | 9,225 | 18,015 | 16,346 | ||||||||
Intersegment Eliminations | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 4,459 | 8,989 | 10,392 | ||||||||
Intersegment Eliminations | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 5,311 | 9,653 | 6,020 | ||||||||
Intersegment Eliminations | Corporate & Eliminations | |||||||||||
External revenue | |||||||||||
Service revenue and other | (545) | (627) | (66) | ||||||||
Corporate, Non-Segment | |||||||||||
Operating expenses | |||||||||||
Selling, general and administrative | 33,414 | 44,114 | 43,364 | ||||||||
Restructuring expense | 1,525 | ||||||||||
Impairment expense | 0 | ||||||||||
Depreciation and amortization | 5,216 | 5,721 | 6,244 | ||||||||
Total operating expenses | 39,733 | 49,703 | 49,545 | ||||||||
Operating loss | (40,278) | (50,330) | (49,611) | ||||||||
Capital expenditures | 2,993 | 1,203 | 5,500 | ||||||||
Residential & SMB | Operating Segments | |||||||||||
External revenue | |||||||||||
Service revenue and other | 177,530 | 154,956 | 142,290 | ||||||||
Residential & SMB | Operating Segments | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 177,530 | 154,956 | 142,290 | ||||||||
Residential & SMB | Operating Segments | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 0 | 0 | 0 | ||||||||
Commercial Fiber | Operating Segments | |||||||||||
External revenue | |||||||||||
Service revenue and other | 30,842 | 24,431 | 23,004 | ||||||||
Commercial Fiber | Operating Segments | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 30,842 | 24,431 | 23,004 | ||||||||
Commercial Fiber | Operating Segments | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 0 | 0 | 0 | ||||||||
RLEC & Other | Operating Segments | |||||||||||
External revenue | |||||||||||
Service revenue and other | 15,249 | 15,971 | 18,257 | ||||||||
RLEC & Other | Operating Segments | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 15,249 | 15,971 | 18,257 | ||||||||
RLEC & Other | Operating Segments | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 0 | 0 | 0 | ||||||||
Tower lease | Operating Segments | |||||||||||
External revenue | |||||||||||
Service revenue and other | 12,393 | 7,402 | 6,965 | ||||||||
Tower lease | Operating Segments | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 0 | 0 | 0 | ||||||||
Tower lease | Operating Segments | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 12,393 | 7,402 | 6,965 | ||||||||
Service revenue and other | Operating Segments | |||||||||||
External revenue | |||||||||||
Service revenue and other | 236,014 | 202,760 | 190,516 | ||||||||
Service revenue and other | Operating Segments | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 223,621 | 195,358 | 183,551 | ||||||||
Service revenue and other | Operating Segments | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 12,393 | 7,402 | 6,965 | ||||||||
Cost of services | Operating Segments | |||||||||||
Operating expenses | |||||||||||
Cost of services | 102,299 | 89,657 | 83,572 | ||||||||
Cost of services | Operating Segments | Broadband | |||||||||||
Operating expenses | |||||||||||
Cost of services | 97,283 | 84,893 | 79,858 | ||||||||
Cost of services | Operating Segments | Tower | |||||||||||
Operating expenses | |||||||||||
Cost of services | 5,438 | 4,896 | 3,777 | ||||||||
Cost of services | Corporate, Non-Segment | |||||||||||
Operating expenses | |||||||||||
Cost of services | $ (422) | $ (132) | $ (63) |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||||||
Total consolidated operating loss | $ (7,901) | $ 851 | $ 2,390 | $ 2,230 | $ 1,529 | $ (121) | $ (2,361) | $ (1,648) | $ (2,430) | $ (2,601) | $ (1,342) |
Other income, net | 8,665 | 3,187 | 3,280 | ||||||||
Income from continuing operations before income taxes | $ 6,235 | $ 586 | $ 1,938 |
Quarterly Results (unaudited)_2
Quarterly Results (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 62,604 | $ 62,244 | $ 60,700 | $ 59,691 | $ 58,132 | $ 55,173 | $ 54,336 | $ 53,134 | $ 245,239 | $ 220,775 | $ 206,862 |
Operating income (loss) | (7,901) | 851 | 2,390 | 2,230 | 1,529 | (121) | (2,361) | (1,648) | (2,430) | (2,601) | (1,342) |
Income from continuing operations | (3,137) | 6,495 | 1,626 | 2,945 | 1,539 | 985 | (893) | (55) | 7,929 | 1,576 | 1,932 |
Income (loss) from discontinued operations, net of tax | (4,965) | (406) | 51,566 | 48,472 | |||||||
Income from discontinued operations, net of tax | 47,675 | 33,509 | 29,784 | 13,129 | 990,902 | 124,097 | 53,568 | ||||
Gain on the sale of discontinued operations, net of tax | 9,503 | 886,732 | 0 | 0 | 896,235 | 0 | 0 | ||||
Net income | $ 1,401 | $ 892,821 | $ 53,192 | $ 51,417 | $ 49,214 | $ 34,494 | $ 28,891 | $ 13,074 | $ 998,831 | $ 125,673 | $ 55,500 |
Basic - Income from continuing operations (in dollars per share) | $ (0.06) | $ 0.13 | $ 0.03 | $ 0.06 | $ 0.03 | $ 0.02 | $ (0.02) | $ 0 | $ 0.16 | $ 0.03 | $ 0.04 |
Basic - Income from discontinued operations, net of tax (in dollars per share) | 0.09 | 17.73 | 1.04 | 0.97 | 0.96 | 0.67 | 0.60 | 0.26 | 19.81 | 2.49 | 1.07 |
Basic net income per share (in dollars per share) | 0.03 | 17.86 | 1.07 | 1.03 | 0.99 | 0.69 | 0.58 | 0.26 | 19.97 | 2.52 | 1.11 |
Diluted - Income from continuing operations (in dollars per share) | (0.06) | 0.13 | 0.03 | 0.06 | 0.03 | 0.02 | (0.02) | 0 | 0.16 | 0.03 | 0.04 |
Diluted - Income from discontinued operations, net of tax (in dollars per share) | 0.09 | 17.68 | 1.03 | 0.97 | 0.95 | 0.67 | 0.60 | 0.26 | 19.76 | 2.48 | 1.07 |
Diluted net income per share (in dollars per share) | $ 0.03 | $ 17.81 | $ 1.06 | $ 1.03 | $ 0.98 | $ 0.69 | $ 0.58 | $ 0.26 | $ 19.92 | $ 2.51 | $ 1.11 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts and Reserves (Details) - SEC Schedule, 12-09, Allowance, Credit Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 614 | $ 533 | $ 534 |
Recoveries added to allowance | 530 | 758 | 649 |
Bad debt expense | 1,028 | 1,220 | 1,743 |
Write-offs | (1,820) | (1,897) | (2,393) |
Balance at End of Year | $ 352 | $ 614 | $ 533 |