Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 24, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Entity Registrant Name | GCI Inc | ||
Entity Central Index Key | 75,679 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Common Stock Shares Outstanding | 100 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 19,297 | $ 26,528 |
Receivables | 219,794 | 208,384 |
Less allowance for doubtful receivables | 4,407 | 3,630 |
Net receivables | 215,387 | 204,754 |
Prepaid expenses | 18,599 | 12,862 |
Inventories | 11,945 | 11,322 |
Other current assets | 167 | 3,129 |
Total current assets | 265,395 | 258,595 |
Property and equipment | 2,614,875 | 2,384,530 |
Less accumulated depreciation | 1,452,957 | 1,290,149 |
Net property and equipment | 1,161,918 | 1,094,381 |
Goodwill | 239,263 | 239,263 |
Cable certificates | 191,635 | 191,635 |
Wireless licenses | 92,347 | 86,347 |
Other intangible assets, net of amortization | 74,444 | 69,290 |
Other assets | 40,937 | 27,429 |
Total other assets | 638,626 | 613,964 |
Total assets | 2,065,939 | 1,966,940 |
Current liabilities: | ||
Current maturities of obligations under long-term debt, capital leases, and tower obligations | 13,229 | 12,050 |
Accounts payable | 72,937 | 63,014 |
Deferred revenue | 37,618 | 34,128 |
Accrued payroll and payroll related obligations | 30,305 | 31,337 |
Accrued liabilities | 14,729 | 22,822 |
Accrued interest | 8,794 | 8,523 |
Subscriber deposits | 917 | 1,242 |
Total current liabilities | 178,529 | 173,116 |
Long-term debt, net | 1,276,806 | 1,274,586 |
Obligations under capital leases, excluding current maturities (including $1,769 and $1,824 due to a related party at December 31, 2016 and 2015, respectively) | 50,316 | 59,651 |
Deferred income taxes | 141,785 | 108,073 |
Long-term deferred revenue | 135,877 | 93,427 |
Tower obligation | 87,653 | 0 |
Other liabilities | 54,056 | 47,992 |
Total liabilities | 1,925,022 | 1,756,845 |
Commitments and contingencies | ||
Stockholder's equity: | ||
Paid-in capital | 161,310 | 164,508 |
Retained deficit | (257,544) | (192,033) |
Total GCI, Inc. stockholder's equity | 110,388 | 179,097 |
Non-controlling interests | 30,529 | 30,998 |
Total stockholder's equity | 140,917 | 210,095 |
Total liabilities and stockholder's equity | 2,065,939 | 1,966,940 |
Class A Common Stock | ||
Stockholder's equity: | ||
Class A common stock (no par). Authorized 10 shares; issued and outstanding 0.1 shares at December 31, 2016 and 2015 | $ 206,622 | $ 206,622 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
LIABILITIES AND STOCKHOLDER'S EQUITY | ||
Related party capital lease obligations, excluding current maturities | $ 1,769 | $ 1,824 |
Class A Common Stock | ||
LIABILITIES AND STOCKHOLDER'S EQUITY | ||
Common Stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 10,000 | 10,000 |
Common stock, shares issued | 100 | 100 |
Common stock, shares outstanding | 100 | 100 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Non-related party | $ 933,812,000 | $ 973,251,000 | $ 850,656,000 |
Related party | 0 | 5,283,000 | 59,542,000 |
Total revenues | 933,812,000 | 978,534,000 | 910,198,000 |
Cost of goods sold (exclusive of depreciation and amortization shown separately below): | |||
Non-related party | 302,578,000 | 321,457,000 | 291,770,000 |
Related party | 0 | 881,000 | 10,934,000 |
Total cost of goods sold | 302,578,000 | 322,338,000 | 302,704,000 |
Selling, general and administrative expenses | |||
Non-related party | 358,356,000 | 337,839,000 | 289,674,000 |
Related party | 0 | 540,000 | 3,973,000 |
Total selling, general and administrative expenses | 358,356,000 | 338,379,000 | 293,647,000 |
Depreciation and amortization expense | 193,775,000 | 181,767,000 | 170,285,000 |
Software impairment charge | 0 | 29,839,000 | 0 |
Operating income | 79,103,000 | 106,211,000 | 143,562,000 |
Other income (expense): | |||
Interest expense (including amortization of deferred loan fees) | (78,628,000) | (78,786,000) | (72,496,000) |
Loss on extinguishment of debt | (640,000) | (27,700,000) | 0 |
Impairment of equity method investment | 0 | (12,593,000) | 0 |
Other | 5,569,000 | 2,917,000 | (1,793,000) |
Other expense, net | (73,699,000) | (116,162,000) | (74,289,000) |
Income (loss) before income taxes | 5,404,000 | (9,951,000) | 69,273,000 |
Income tax expense | (7,080,000) | (81,000) | (10,029,000) |
Net income (loss) | (1,676,000) | (10,032,000) | 59,244,000 |
Net income attributable to non-controlling interests | (469,000) | 159,000 | 51,687,000 |
Net income (loss) attributable to GCI, Inc. | $ (1,207,000) | $ (10,191,000) | $ 7,557,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY - USD ($) $ in Thousands | Total | Class A Common Stock | Common StockClass A Common Stock | Paid-in Capital | Retained Deficit | Non-controlling Interests |
Common stock, shares issued, Beginning at Dec. 31, 2013 | 100 | |||||
Beginning balances, total stockholder's equity at Dec. 31, 2013 | $ 457,354 | $ 206,622 | $ 79,297 | $ (128,775) | $ 300,210 | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | ||||||
Net income (loss) | 59,244 | 7,557 | 51,687 | |||
Distribution to General Communication, Inc. | (6,850) | (6,850) | ||||
Contribution from General Communication, Inc. | 9,505 | 9,505 | ||||
Distribution to non-controlling interest | (50,000) | (50,000) | ||||
Adjustment to investment by non-controlling interest | (2,131) | (2,131) | ||||
Other | 100 | 100 | ||||
Common stock, shares issued, Ending Balance at Dec. 31, 2014 | 100 | |||||
Ending balances, total stockholder's equity at Dec. 31, 2014 | 467,222 | $ 206,622 | 88,802 | (128,068) | 299,866 | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | ||||||
Net income (loss) | (10,032) | (10,191) | 159 | |||
Distribution to General Communication, Inc. | (53,774) | (53,774) | ||||
Contribution from General Communication, Inc. | 86,218 | 86,218 | ||||
Distribution to non-controlling interest | (765) | (765) | ||||
Investment by non-controlling interest | 3,209 | 3,209 | ||||
Non-controlling interest acquisition | (281,803) | (10,282) | (271,521) | |||
Other | (180) | (230) | 50 | |||
Common stock, shares issued, Ending Balance at Dec. 31, 2015 | 100 | 100 | ||||
Ending balances, total stockholder's equity at Dec. 31, 2015 | 210,095 | $ 206,622 | 164,508 | (192,033) | 30,998 | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | ||||||
Net income (loss) | (1,676) | (1,207) | (469) | |||
Distribution to General Communication, Inc. | (64,304) | (64,304) | ||||
Contribution from General Communication, Inc. | 11,247 | 11,247 | ||||
Non-controlling interest acquisition | (14,445) | (14,445) | ||||
Common stock, shares issued, Ending Balance at Dec. 31, 2016 | 100 | 100 | ||||
Ending balances, total stockholder's equity at Dec. 31, 2016 | $ 140,917 | $ 206,622 | $ 161,310 | $ (257,544) | $ 30,529 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (1,676,000) | $ (10,032,000) | $ 59,244,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization expense | 193,775,000 | 181,767,000 | 170,285,000 |
Share-based compensation expense | 11,043,000 | 10,902,000 | 8,392,000 |
Deferred income tax expense | 7,080,000 | 81,000 | 10,029,000 |
Loss on extinguishment of debt | 640,000 | 27,700,000 | 0 |
Software impairment charge | 0 | 29,839,000 | 0 |
Impairment of equity method investment | 0 | 12,593,000 | 0 |
Other noncash income and expense items | 9,866,000 | 14,672,000 | 9,933,000 |
Change in operating assets and liabilities | (14,827,000) | (13,567,000) | 320,000 |
Net cash provided by operating activities | 205,901,000 | 253,955,000 | 258,203,000 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (194,478,000) | (176,235,000) | (176,109,000) |
Purchase of KKCC assets | (19,700,000) | 0 | 0 |
Purchases of other assets and intangible assets | (17,486,000) | (13,955,000) | (11,018,000) |
Note receivable payment from an equity method investee | 3,000,000 | 0 | 0 |
Purchase of investments | (1,800,000) | 0 | (25,735,000) |
Grant proceeds | 1,527,000 | 14,007,000 | 1,136,000 |
Restricted cash | 175,000 | 65,000 | 5,871,000 |
Proceeds from the sale of investment | 0 | 7,551,000 | 6,180,000 |
Purchase of businesses, net of cash received | 0 | (12,736,000) | (2,514,000) |
Note receivable issued to an equity method investee | 0 | (3,000,000) | 0 |
Other | 1,599,000 | (4,760,000) | 49,000 |
Net cash used for investing activities | (227,163,000) | (189,063,000) | (202,140,000) |
Cash flows from financing activities: | |||
Repayment of debt, capital lease, and tower obligations | (132,205,000) | (494,982,000) | (118,585,000) |
Borrowing on Senior Credit Facility | 125,000,000 | 295,000,000 | 89,000,000 |
Proceeds from tower transaction | 90,795,000 | 0 | 0 |
Net contribution from (distribution to) General Communication, Inc. | (64,108,000) | 21,700,000 | (6,384,000) |
Payment of debt issuance costs | (5,451,000) | (13,979,000) | (84,000) |
Issuance of 2025 Notes | 0 | 445,973,000 | 0 |
Purchase of non-controlling interests | 0 | (282,505,000) | 0 |
Payment of bond call premium | 0 | (20,244,000) | 0 |
Distribution to non-controlling interest | 0 | (4,932,000) | (50,000,000) |
Other | 0 | 203,000 | 421,000 |
Net cash provided by (used for) financing activities | 14,031,000 | (53,766,000) | (85,632,000) |
Net increase (decrease) in cash and cash equivalents | (7,231,000) | 11,126,000 | (29,569,000) |
Cash and cash equivalents at beginning of period | 26,528,000 | 15,402,000 | 44,971,000 |
Cash and cash equivalents at end of period | $ 19,297,000 | $ 26,528,000 | $ 15,402,000 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Principles | Business and Summary of Significant Accounting Principles In the following discussion, GCI, Inc. and its direct and indirect subsidiaries are referred to as “we,” “us” and “our.” Basis of Presentation We were incorporated in Alaska in 1997 to affect the issuance of Senior Notes. As a wholly owned subsidiary of General Communication, Inc. ("GCI"), we received through our initial capitalization all ownership interests in subsidiaries previously held by GCI. The GCI and GCI, Inc. consolidated financial statements include substantially the same operating activities. (a) Business We provide a full range of wireless, data, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions primarily in Alaska. (b) Basis of Presentation and Principles of Consolidation Our consolidated financial statements include the consolidated accounts of GCI, Inc. and its wholly owned subsidiaries, The Alaska Wireless Network, LLC ("AWN") of which we owned a two-third interest through February 2, 2015 when we purchased the remaining one-third interest, and four variable interest entities (“VIEs”) for which we are the primary beneficiary after providing certain loans and guarantees. These VIEs are Terra GCI Investment Fund, LLC (“TIF”), Terra GCI 2 Investment Fund, LLC (“TIF 2”), Terra GCI 2-USB Investment Fund, LLC (“TIF 2-USB”) and Terra GCI 3 Investment Fund, LLC (“TIF 3”). We also include in our consolidated financial statements non-controlling interests in consolidated subsidiaries for which our ownership is less than 100 percent. All significant intercompany transactions between non-regulated affiliates of our company are eliminated. Intercompany transactions generated between regulated and non-regulated affiliates of our company are not eliminated in consolidation. (c) Non-controlling Interests Non-controlling interests represent the equity ownership interests in consolidated subsidiaries not owned by us. Non-controlling interests are adjusted for contributions, distributions, and income and loss attributable to the non-controlling interest partners of the consolidated entities. Income and loss is allocated to the non-controlling interests based on the respective governing documents. (d) Acquisitions Wireless Acquisition On February 2, 2015, we purchased Alaska Communications Systems Group, Inc.'s (“ACS”) interest in AWN ("AWN NCI Acquisition") and substantially all the assets of ACS and its affiliates related to ACS’s wireless operations (“Acquired ACS Assets”) (collectively the "Wireless Acquisition"). Under the terms of the agreement, we paid ACS $293.2 million , excluding working capital adjustments and agreed to terminate certain agreements related to the use of ACS network assets that were included as part of the original transaction that closed in July 2013. The Acquired ACS Assets include substantially all of ACS’s wireless subscriber assets, including subscriber contracts, and certain of ACS’s CDMA network assets, including fiber strands and associated cell site electronics and microwave facilities and associated electronics. We assumed from ACS post-closing liabilities of ACS and its affiliates under contracts assumed by us and liabilities with respect to the ownership by ACS of its equity interest in AWN to the extent accruing and related to the period after closing. All other liabilities were retained by ACS and its affiliates. We have accounted for the AWN NCI Acquisition as the acquisition of a non-controlling interest in accordance with Accounting Standards Codification ("ASC") 810, Consolidation, and the Acquired ACS Assets as the acquisition of assets that do not constitute a business in accordance with ASC 805-50, Business Combinations - Related Issues. Total consideration transferred to ACS in the transaction consisted of the cash payment, settlement of working capital, and the fair market value of certain rights to receive future capacity terminated as part of the Wireless Acquisition agreement. The future capacity receivable assets transferred as consideration were adjusted to fair value as of the acquisition date resulting in a gain of $1.2 million recorded in Other Income (Expense) in our Consolidated Statement of Operations for the year ended December 31, 2015. We allocated the total consideration transferred to ACS between the AWN NCI Acquisition and the Acquired ACS Assets based on the relative fair values of the assets and non-controlling interest received. The following table summarizes the allocation of total consideration transferred to ACS between the AWN NCI Acquisition and the Acquired ACS Assets excluding working capital adjustments (amounts in thousands): Total consideration transferred to ACS $ 304,838 Allocation of consideration between wireless assets and non-controlling interest acquired: AWN non-controlling interest $ 303,831 Property and equipment 746 Other intangible assets 261 Total consideration $ 304,838 We have accounted for the AWN NCI Acquisition as an equity transaction, with the carrying amount of the non-controlling interest adjusted to reflect the change in ownership of AWN. The difference between the fair value of consideration paid and the total of the additional deferred taxes incurred as a result of the transaction and the carrying amount of the non-controlling interest has been recognized as additional paid-in capital in our Consolidated Statement of Stockholder's Equity. The impact of the AWN NCI Acquisition is summarized in the following table (amounts in thousands): Reduction of non-controlling interest $ 268,364 Increase in deferred tax assets 9,583 Additional paid-in capital 25,884 Fair value of consideration paid for acquisition of equity interest $ 303,831 Pursuant to the accounting guidance in ASC 805-50, we determined that the Acquired ACS Assets did not meet the criteria necessary to constitute a business combination and was therefore accounted for as an asset purchase. We recognized the assets acquired in our Consolidated Balance Sheet at their allocated cost on the day of acquisition. The deferred tax assets and additional paid-in capital were adjusted in 2016 as a result of the reallocation of partnership tax basis as determined when preparing the 2015 federal tax return. In conjunction with the Wireless Acquisition, we amended certain agreements related to the right to use ACS network assets. We adjusted the related right to use asset to fair value as of the acquisition date resulting in a loss of $3.8 million recorded in Other Income (Expense) in our Consolidated Statement of Operations for the year ended December 31, 2015. Other Acquisitions During the year ended December 31, 2015, we completed three additional business acquisitions for total cash consideration of $12.7 million , net of cash received. We accounted for the transactions using the acquisition method of accounting under ASC 805, Business Combinations. Accordingly, the assets received, liabilities assumed and any non-controlling interests were recorded at their estimated fair value as of the acquisition date. We determined the estimated fair values using a combination of the discounted cash flows method and estimates made by management. (e) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. This standard provides guidance for the recognition, measurement and disclosure of revenue resulting from contracts with customers and will supersede virtually all of the current revenue recognition guidance under GAAP. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. In March 2016, the FASB issued ASU 2016-08, which amended the guidance in the new standard in order to clarify the principal versus agent assessment and is intended to make the guidance more operable and lead to more consistent application. In April 2016, the FASB issued ASU 2016-10, which clarifies the identification of performance obligations and the licensing implementation guidance in ASU 2014-09. In May 2016, the FASB issued ASU 2016-11, which rescinds SEC paragraphs pursuant to SEC staff announcements regarding ASU 2014-09. These rescissions include changes to topics pertaining to accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer. In May 2016, the FASB issued ASU 2016-12, which provides clarifying guidance in certain narrow areas and adds some practical expedients to ASU 2014-09. Finally, ASU 2016-20 makes minor corrections or improvements to ASU 2014-09 that are not expected to have a significant effect on accounting practices under ASU 2014-09. The standard permits the use of either the retrospective or cumulative effect transition method. We anticipate using the retrospective method to adopt this standard. Early adoption is permitted for annual periods beginning after December 15, 2016, however, we do not plan to early adopt this standard. We have assessed our material revenue streams and we do not anticipate significant changes to our revenue recognition as a result of this new standard. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lease accounting by the lessor remains largely unchanged by the new standard. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and is required to be adopted using the modified retrospective approach. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations, but we expect that adoption will have a material impact on our long-term assets and liabilities. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC 718, Compensation - Stock Compensation. The update includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted with any adjustments reflected as of the beginning of the fiscal year of adoption. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The update introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate consideration of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and is required to be adopted using the modified retrospective approach. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update addresses eight specific cash flow issues with the objective of reducing diversity in practice. The issues identified within the ASU include: debt prepayments or extinguishment costs; contingent consideration made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identified cash flows and application of the predominance principle. ASU 2016-15 is effective for annual and interim reporting periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for annual and interim reporting periods. The adoption of this guidance is not expected to have a material effect on our statement of cash flows. (f) Recently Adopted Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 requires an entity to present debt issuance costs related to a recognized debt liability in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. In August 2015, the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements which clarifies that the guidance in ASU 2015-03 does not apply to line-of-credit arrangements. According to ASU 2015-15, line-of-credit arrangements will continue to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issue costs ratably over the term of the arrangement. We adopted ASU 2015-03 retrospectively as of January 1, 2016, and have reclassified $15.4 million of the December 31, 2015, Deferred Loan and Senior Note Costs, Net of Amortization balance included in Total Other Assets to Long-Term Debt, Net included in Total Liabilities. In April 2015, the FASB issued ASU 2015-05, Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. The ASU provides guidance in evaluating whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for as an acquisition of a software license. If the arrangement does not contain a software license, it should be accounted for as a service contract. We adopted ASU 2015-05 prospectively as of January 1, 2016. The adoption of this standard did not have a significant effect on our financial position or results of operations. In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Updates. The amendments in this update cover a wide range of topics in the codification and are generally categorized as follows: Amendments Related to Differences between Original Guidance and the Codification; Guidance Clarification and Reference Corrections; Simplification; and, Minor Improvements. We adopted ASU 2015-10 as of January 1, 2016. The adoption of this standard did not have a significant effect on our financial position or results of operations. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. Under ASU 2015-11, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. We adopted ASU 2015-11 prospectively as of April 1, 2016. The adoption of this standard did not have a significant effect on our financial position or results of operations. In January 2017, the FASB issued an ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. We adopted and applied ASU 2017-01 to a transaction that we closed in November 2016 (see Note 5 of this Form 10-K for information on the transaction). (g) Regulatory Accounting We account for the regulated operations of our incumbent local exchange carriers in accordance with the accounting principles for regulated enterprises. This accounting recognizes the economic effects of rate regulation by recording cost and a return on investment as such amounts are recovered through rates authorized by regulatory authorities. Accordingly, plant and equipment is depreciated over lives approved by regulators and certain costs and obligations are deferred based upon approvals received from regulators to permit recovery of such amounts in future years. Our cost studies and depreciation rates for our regulated operations are subject to periodic audits that could result in a change to recorded revenues. (h) Earnings per Common Share We are a wholly owned subsidiary of GCI and, accordingly, are not required to present earnings per share. Our common stock is not publicly traded. (i) Cash Equivalents Cash equivalents consist of certificates of deposit which have an original maturity of three months or less at the date acquired and are readily convertible into cash. (j) Accounts Receivable and Allowance for Doubtful Receivables Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful receivables is our best estimate of the amount of probable credit losses in our existing accounts receivable. We base our estimates on the aging of our accounts receivable balances, financial health of specific customers, regional economic data, changes in our collections process, regulatory requirements and our customers’ compliance with Universal Service Administrative Company rules. We review our allowance for doubtful receivables methodology at least annually. Depending upon the type of account receivable our allowance is calculated using a pooled basis with an allowance for all accounts greater than 120 days past due, a pooled basis using a percentage of related accounts, or a specific identification method. When a specific identification method is used, potentially uncollectible accounts due to bankruptcy or other issues are reviewed individually for collectability. Account balances are charged off against the allowance when we feel it is probable the receivable will not be recovered. We do not have any off-balance-sheet credit exposure related to our customers. Wireless Equipment Installment Plan ("EIP") Receivables We offer new and existing wireless customers the option to participate in Upgrade Now, a program that provides eligible customers with the ability to purchase certain wireless devices in installments over a period of up to 24 months. Participating customers have the right to trade-in the original equipment for a new device after making the equivalent of 12 monthly installment payments, provided their handset is in good working condition. Upon upgrade, the outstanding balance of the EIP is exchanged for the used handset. At the time of sale, we impute interest on the receivables associated with Upgrade Now. We record the imputed interest as a reduction to the related accounts receivable. Interest income, which is included in Other Income and (Expense) in our Consolidated Statements of Operations, is recognized over the financed installment term. We assess the collectability of our EIP receivables based upon a variety of factors, including payment trends and other qualitative factors. The credit profiles of our customers with a Upgrade Now plan are similar to those of our customers with a traditional subsidized plan. Customers with a credit profile which carries a higher risk are required to make a down payment for equipment financed through Upgrade Now. (k) Inventories Wireless handset inventories are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. Handset costs in excess of the revenues generated from handset sales, or handset subsidies, are expensed at the time of sale. We do not recognize the expected handset subsidies prior to the time of sale because the promotional discount decision is made at the point of sale and/or because we expect to recover the handset subsidies through service revenue. Inventories of other merchandise for resale and parts are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. (l) Property and Equipment Property and equipment is stated at cost. Construction costs of facilities are capitalized. Equipment financed under capital leases is recorded at the lower of fair market value or the present value of future minimum lease payments at inception of the lease. Construction in progress represents transmission equipment and support equipment and systems not placed in service on December 31, 2016 , that management intends to place in service during 2017 and 2018. Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable, in the following ranges: Asset Category Asset Lives Telephony transmission equipment and distribution facilities 5-20 years Fiber optic cable systems 15-25 years Cable transmission equipment and distribution facilities 5-30 years Support equipment and systems 3-20 years Transportation equipment 5-13 years Property and equipment under capital leases 12-20 years Buildings 25 years Customer premise equipment 2-20 years Studio equipment 10-15 years Amortization of property and equipment under capital leases is included in Depreciation and Amortization Expense in our Consolidated Statements of Operations. Repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments are capitalized. Accumulated depreciation is removed and gains or losses are recognized at the time of sales or other dispositions of property and equipment. (m) Intangible Assets and Goodwill Goodwill, cable certificates (certificates of convenience and public necessity), wireless licenses and broadcast licenses are not amortized. Cable certificates represent certain perpetual operating rights to provide cable services. Wireless licenses represent the right to utilize certain radio frequency spectrum to provide wireless communications services. Broadcast licenses represent the right to broadcast television stations in certain areas. Goodwill represents the excess of cost over fair value of net assets acquired in connection with a business acquisition. All other amortizable intangible assets are being amortized over 2 to 20 year periods using the straight-line method. (n) Impairment of Intangibles, Goodwill, and Long-lived Assets Cable certificates, wireless licenses and broadcast licenses are treated as indefinite-lived intangible assets and are tested annually for impairment or more frequently if events and circumstances indicate that the asset might be impaired. We assessed qualitative factors (“Step Zero”) in our annual test over our cable certificate, wireless license and broadcast license assets as of October 31, 2016 to determine if it is more likely than not that those intangible assets are impaired and require further analysis. As part of our Step Zero analysis, we considered our own economic position, estimated future growth, and geographic and industry economic outlooks. These estimates and assumptions have a significant impact on our analysis. The quantitative impairment test ("Step One") for identifiable indefinite-lived intangible assets other than goodwill consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. After an impairment loss is recognized, the adjusted carrying amount of the asset becomes its new accounting basis. Impairment testing of our cable certificate, wireless license and broadcast license assets as of October 31, 2015 , used a direct discounted cash flow method. This approach requires us to make estimates and assumptions including projected cash flows and discount rates. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such impairment charge. Our goodwill is tested annually for impairment, and is tested for impairment more frequently if events and circumstances indicate that the assets might be impaired. We used a Step Zero analysis for goodwill impairment as of October 31, 2016 to determine whether it is more likely than not that goodwill is impaired. We considered qualitative factors such as our economic position, estimated future growth, geographic and industry economic outlooks, and the margin by which our fair value exceeded the book value in 2015. These estimates and assumptions have a significant impact on our analysis. For goodwill impairment testing as of October 31, 2015, we used the quantitative two-step process. The first step of the quantitative goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount. To determine our reporting units, we evaluated the components one level below the segment level and we aggregated the components if they had similar economic characteristics. As a result of this assessment, our reporting units were the same as our two reportable segments. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill that would be recognized in a business combination. We used an income approach to determine the fair value of our reporting units for purposes of our goodwill impairment test. In addition, a market-based approach is used where possible to corroborate the fair values determined by the income approach. The income approach requires us to make estimates and assumptions including projected cash flows and discount rates. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such impairment charge. We completed our annual goodwill and intangibles review and no impairment charge was recorded for the years ended December 31, 2016 , 2015 and 2014 . Long-lived assets, such as property, plant, and equipment, and purchased or developed intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of an asset group to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. During the year ended December 31, 2015, we recorded impairment charges related to our long-lived software assets (see Note 15 of this Form 10-K for detailed information). We recorded no impairment charges related to our long lived assets for the years ended December 31, 2016 and 2014 . (o) Amortization and Write-off of Loan Fees Debt issuance costs are deferred and amortized using the effective interest method. If a refinancing or amendment of a debt instrument is a substantial modification, all or a portion of the applicable debt issuance costs are written off. If a debt instrument is repaid prior to the maturity date we will write-off the related unamortized amount of debt issuance costs. (p) Other Assets Other Assets primarily include broadcast licenses, equity investments that are accounted for using the equity or cost method, restricted cash, long-term deposits, prepayments, long-term EIP receivables and long-term non-trade accounts receivable. (q) Investments We hold investments in equity method and cost method investees. Investments in equity method investees are those for which we have the ability to exercise significant influence but do not control and are not the primary beneficiary. Significant influence typically exists if we have a 20% to 50% ownership interest in the venture unless persuasive evidence to the contrary exists. Under this method of accounting, we record our proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Cash payments to equity method investees such as additional investments, loans and advances and expenses incurred on behalf of investees, as well as payments from equity method investees such as dividends, distributions and repayments of loans and advances are recorded as adjustments to investment balances. Investments in entities in which we have no control or significant influence are accounted for under the cost method. We review our investment portfolio each reporting period to determine whether there are events or circumstances that would indicate there is a decline in the fair value that would be considered other than temporary. We recorded an impairment loss of $12.6 million related to one of our equity investments during the year ended December 31, 2015 (see "Equity Method Investment" section of Note 13 of this Form 10-K for additional information). We recorded no impairment charges to equity method or cost method investments for the years ended December 31, 2016 and 2014 . (r) Asset Retirement Obligations We record the fair value of a liability for an asset retirement obligation in the period in which it is incurred in Other Liabilities on the Consolidated Balance Sheets. When the liability is initially recorded, we capitalize a cost by increasing the carrying amount of the related long-lived asset. In periods subsequent to initial measurement, changes in the liability for an asset retirement obligation resulting from revisions to either the timing or the amount of the original estimate of undiscounted cash flows are recognized. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, we either settle the obligation for its recorded amount or incur a gain or loss upon settlement. The majority of our asset retirement obligations are the estimated cost to remove telephony transmission equipment and support equipment from leased property. Following is a reconciliation of the beginning and ending aggregate carrying amounts of our liability for asset retirement obligations (amounts in thousands): Balance at December 31, 2014 $ 31,940 Liability incurred 2,048 Accretion expense 1,121 Liability settled (49 ) Balance at December 31, 2015 35,060 Liability incurred 1,580 Revisions in estimated cash flows, including adjustment from tower transaction (Note 2) 3,368 Accretion expense 1,229 Liability settled (82 ) Balance at December 31, 2016 $ 41,155 During the years ended December 31, 2016 and 2015 , we recorded additional capitalized costs of $4.9 million and $2.0 million , respectively, in Property and Equipment. Certain of our network facilities are on property th |
Tower Sale and Leaseback
Tower Sale and Leaseback | 12 Months Ended |
Dec. 31, 2016 | |
Tower Sale and Leaseback [Abstract] | |
Tower Sale and Leaseback | Tower Sale and Leaseback In August 2016, we sold to Vertical Bridge Towers II, LLC (“Vertical Bridge”) 276 cell sites (“Tower Sites”) in exchange for net proceeds of $90.8 million (“Tower Transaction”). The sale included, where applicable, the towers, the land on which the towers were situated if owned by us, the obligation to pay land leases, and other executory costs. We entered into a master lease agreement in which we lease back space at the Tower Sites for an initial term of ten years, followed by the option to renew for eight additional five year periods, for a total possible lease term of 50 years. Each lease is subject to a 2% annual increase in lease payments throughout the life of the initial lease and all subsequent lease renewals. Prior to the Tower Transaction, we had the legal obligation to remove the towers upon termination of the land lease agreements. The obligation is now reduced to the removal of our equipment from the towers. Therefore, we have reduced our asset retirement obligation related to the Tower Sites by $ 3.4 million . Per the master lease agreement, we have the right to cure land lease defaults on behalf of Vertical Bridge and have negotiated fixed rate lease renewals as described above. Due to this continuing involvement with the Tower Sites, we determined we were precluded from applying sale-leaseback accounting. We recorded a long-term financial obligation (“Tower Obligation”) in the amount of the net proceeds received and recognize interest on the Tower Obligation at a rate of 7.1% using the effective interest method. The Tower Obligation is increased by interest expense and amortized through contractual leaseback payments made by us to Vertical Bridge. Our historical tower site asset costs continue to be depreciated and reported in Net Property and Equipment. The following table summarizes the impacts to the Consolidated Balance Sheets (amounts in thousands): December 31, 2016 Property and equipment (1) $ 18,792 Tower obligation (2) $ 87,653 (1) Property conveyed to Vertical Bridge as part of the Tower Transaction, but remains on our Consolidated Balance Sheets. (2) Excluding current portion and net of deferred transaction costs. Future minimum payments related to the Tower Obligation, including expected renewals and excluding deferred transaction costs, are summarized below (amounts in thousands): Years ending December 31, Total 2017 $ 6,996 2018 7,136 2019 7,279 2020 7,425 2021 7,573 2022 and thereafter 150,117 Total minimum payments 186,526 Less amount representing interest 96,722 Tower obligation $ 89,804 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows Supplemental Disclosures | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Consolidated Statements of Cash Flows Supplemental Disclosures | Consolidated Statements of Cash Flows Supplemental Disclosures Changes in operating assets and liabilities consist of (amounts in thousands): Year ended December 31, 2016 2015 2014 (Increase) decrease in accounts receivable, net $ (8,045 ) (4,230 ) 15,357 Increase in prepaid expenses (6,180 ) (632 ) (4,454 ) (Increase) decrease in inventories (623 ) 5,710 (6,631 ) (Increase) decrease in other current assets (38 ) 24 88 Increase in other assets (11,607 ) (11,491 ) (878 ) Decrease in accounts payable (135 ) (5,579 ) (4,648 ) Increase in deferred revenues 2,446 1,743 1,728 Increase (decrease) in accrued payroll and payroll related obligations (979 ) (1,469 ) 2,997 Increase (decrease) in accrued liabilities (8,031 ) 8,192 (242 ) Increase (decrease) in accrued interest 271 1,869 (434 ) Decrease in subscriber deposits (325 ) (448 ) (114 ) Increase (decrease) in long-term deferred revenue 18,649 (8,561 ) (4,163 ) Increase (decrease) in components of other long-term liabilities (230 ) 1,305 1,714 Total change in operating assets and liabilities $ (14,827 ) (13,567 ) 320 The following items are for the years ended December 31, 2016 , 2015 and 2014 (amounts in thousands): Net cash paid or received: 2016 2015 2014 Interest paid, net of amounts capitalized $ 78,921 76,696 74,618 The following items are non-cash investing and financing activities for the years ended December 31, 2016 , 2015 and 2014 (amounts in thousands): 2016 2015 2014 Non-cash additions for purchases of property and equipment $ 36,854 26,799 42,958 Non-cash consideration for KKCC assets $ 13,993 — — Asset retirement obligation additions to property and equipment $ 4,948 2,048 4,268 Non-cash consideration for Wireless Acquisition $ — 23,326 — Net capital lease obligation $ — — 9,386 Distribution to non-controlling interest $ — — 4,167 Deferred compensation distribution denominated in shares $ — — 617 |
Receivables and Allowance for D
Receivables and Allowance for Doubtful Receivables | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Receivables and Allowance for Doubtful Receivables | Receivables and Allowance for Doubtful Receivables Receivables consist of the following at December 31, 2016 and 2015 (amounts in thousands): 2016 2015 Trade $ 218,491 205,645 Other 1,303 2,739 Total receivables $ 219,794 208,384 As described in Note 1 of this Form 10-K we receive support from each of the various USF programs: high cost, low income, rural health care, and schools and libraries. This support was 24% , 19% , and 19% of our revenue for the years ended December 31, 2016 , 2015 and 2014 , respectively. We had USF net receivables of $92.0 million and $98.1 million at December 31, 2016 and 2015 , respectively. Changes in the allowance for doubtful receivables during the years ended December 31, 2016 , 2015 and 2014 are summarized below (amounts in thousands): Additions Deductions Description Balance at beginning of year Charged to costs and expenses Charged to other accounts Write-offs net of recoveries Balance at end of year December 31, 2016 $ 3,630 8,516 — 7,739 4,407 December 31, 2015 $ 4,542 6,359 — 7,271 3,630 December 31, 2014 $ 2,346 3,994 — 1,798 4,542 |
Net Property and Equipment
Net Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Net Property and Equipment | Net Property and Equipment Net property and equipment consists of the following at December 31, 2016 and 2015 (amounts in thousands): 2016 2015 Land and buildings $ 114,966 108,145 Telephony transmission equipment and distribution facilities 1,271,425 1,215,796 Cable transmission equipment and distribution facilities 231,539 218,259 Studio equipment 15,456 15,171 Support equipment and systems 290,209 251,302 Transportation equipment 23,674 17,398 Customer premise equipment 158,513 155,971 Fiber optic cable systems 351,460 309,217 Construction in progress 157,633 93,271 2,614,875 2,384,530 Less accumulated depreciation 1,385,620 1,231,457 Less accumulated amortization on property and equipment under capital leases 67,337 58,692 Net property and equipment $ 1,161,918 1,094,381 Gross property and equipment under capital leases $ 112,495 112,495 KKCC Asset Acquisition In November 2016, we acquired Kodiak-Kenai Cable Company, LLC ("KKCC") which through its wholly owned subsidiary owns the only low latency redundant fiber link between Anchorage, the Kenai Peninsula and Kodiak. We adopted ASU 2017-01, which allows us to treat the acquisition of KKCC as an asset acquisition. Total consideration transferred to the previous owners of KKCC consisted of a cash payment of $19.7 million and the fair market value of $14.0 million for indefeasible right-to-use capacity that we owned on the KKCC fiber system ("IRU Capacity") that was terminated as a result of the acquisition. The IRU Capacity included as consideration was adjusted to fair value as of the acquisition date resulting in a $3.1 million gain recorded in Other Income (Expense) in our Consolidated Statement of Operations for the year ended December 31, 2016. We allocated the total consideration transferred to the acquired assets and liabilities assumed based on the relative fair value. The following table summarizes the allocation of total consideration (amounts in thousands): Allocation of consideration to assets acquired and liabilities assumed: Property and equipment $ 49,794 Deferred taxes (12,211 ) Deferred revenue (3,815 ) Total consideration $ 33,768 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill As of October 31, 2016 , cable certificates, wireless licenses, broadcast licenses and goodwill were tested for impairment and we determined that these intangible assets were not impaired at December 31, 2016 . The remaining useful lives of our cable certificates, wireless licenses, broadcast licenses and goodwill were evaluated as of October 31, 2016 , and events and circumstances continue to support an indefinite useful life. There are no indicators of impairment of our intangible assets subject to amortization as of December 31, 2016 . Other Intangible Assets subject to amortization include the following at December 31, 2016 and 2015 (amounts in thousands): 2016 2015 Software license fees $ 80,839 63,760 Rights to use 45,114 44,937 Customer relationships 1,530 1,530 Right-of-way 784 784 128,267 111,011 Less accumulated amortization 53,823 41,721 Net other intangible assets $ 74,444 69,290 Changes in Goodwill and Other Intangible Assets are as follows (amounts in thousands): Goodwill Other Intangible Assets Balance at December 31, 2014 $ 229,560 66,015 Goodwill addition from acquisitions - Wireline Segment 9,703 — Asset additions — 15,023 Software impairment — (1,306 ) Amortization expense — (10,442 ) Balance at December 31, 2015 239,263 69,290 Asset additions — 17,601 Amortization expense — (12,447 ) Balance at December 31, 2016 $ 239,263 74,444 Amortization expense for definite-life intangible assets for the years ended December 31, 2016 , 2015 and 2014 follow (amounts in thousands): Years Ended December 31, 2016 2015 2014 Amortization expense $ 12,447 10,442 9,715 Amortized intangible assets are definite-life assets, and as such, we record amortization expense based on a method that most appropriately reflects our expected cash flows from these assets. Intangible assets that have finite useful lives are amortized over their useful lives using the straight-line method with a weighted-average life of 13.3 years. Amortization expense for definite-life intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in thousands): Years Ending December 31, 2017 $ 11,213 2018 $ 9,191 2019 $ 6,686 2020 $ 4,904 2021 $ 3,150 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (amounts in thousands): December 31, Issue Date Interest Rate Principal Payments Maturity Date 2016 2015 Senior Credit Facility - Term Loan B November 17, 2016 LIBOR plus 3.00% 0.25% of the original principal due quarterly February 2, 2022 1 $ 245,187 272,937 Senior Credit Facility - Term Loan A November 17, 2016 LIBOR plus applicable margin 2 Due at maturity November 17, 2021 1 215,000 240,000 Senior Credit Facility - Revolver November 17, 2016 LIBOR plus applicable margin 2 Due at maturity November 17, 2021 1 55,000 — 2025 Notes April 1, 2015 6.875% Due at maturity April 15, 2025 3 450,000 450,000 2021 Notes May 20, 2011 6.75% Due at maturity June 1, 2021 4 325,000 325,000 Wells Fargo note June 30, 2014 LIBOR plus 2.25% Monthly installments July 15, 2029 8,596 9,176 Total Debt 1,298,783 1,297,113 Less unamortized discount 3,518 3,817 Less unamortized deferred loan fees 15,133 15,368 Less current portion of long-term debt 3,326 3,342 Long-term debt, net $ 1,276,806 1,274,586 1 The Senior Credit Facility will mature on December 3, 2020 if our 2021 Notes are not refinanced prior to such date. 2 Applicable margin is based on the company’s leverage ratio and ranges from 2.00% to 3.00%. Our Senior Credit Facility Total Leverage Ratio (as defined) may not exceed 5.95 to one; the Senior Leverage Ratio (as defined) may not exceed 3.00 to one; and our Interest Coverage Ratio (as defined) must not be less than 2.50 to one at any time. 3 The notes are redeemable at our option, in whole or in part, at a redemption price defined in the 2025 Notes agreement, and accrued and unpaid interest (if any) to the date of redemption. 4 The notes are redeemable at our option, in whole or in part, at a redemption price defined in the 2021 Notes agreement, and accrued and unpaid interest (if any) to the date of redemption. (a) Senior Credit Facility In November 2016, we amended our Senior Credit Facility. We paid loan fees and other expenses of $0.2 million that were expensed immediately in our Consolidated Statement of Operations for the year ended December 31, 2016 and $3.9 million that were deferred and are being amortized over the life of the Senior Credit Facility. We recorded a $0.6 million loss on extinguishment of debt in our Consolidated Statement of Operations for the year ended December 31, 2016 as part of this amendment. We had a $55.0 million outstanding balance and $21.0 million in letters of credit under the $200.0 million Senior Credit Facility Revolver at December 31, 2016 , which leaves $124.0 million available for borrowing as of December 31, 2016 . (b) 2025 Notes and 2021 Notes Interest on the notes is payable semi-annually in arrears. Upon the occurrence of a change of control, each holder of the 2025 and 2021 Notes will have the right to require us to purchase all or any part of such holder’s 2025 or 2021 Notes at a purchase price equal to 101% of the principal amount of such notes, plus accrued and unpaid interest on such notes, if any. If we or certain of our subsidiaries engage in asset sales, we must generally either invest the net cash proceeds from such sales in our business within a period of time, prepay debt under any outstanding credit facility, or make an offer to purchase a principal amount of the notes equal to the excess net cash proceeds, with the purchase price equal to 100% of their principal amount, plus accrued and unpaid interest, if any. In conjunction with the issuance of our 2025 Notes and the repayment of our 2019 Notes, we recorded a $27.7 million loss on extinguishment of debt in our Consolidated Statement of Operations for the year ended December 31, 2015. (c) Covenants The terms of the Senior Credit Facility include customary representations and warranties, customary affirmative and negative covenants and customary events of default. At any time after the occurrence of an event of default under the Senior Credit Facility, the lenders may, among other options, declare any amounts outstanding under the Senior Credit Facility immediately due and payable and terminate any commitment to make further loans under the Senior Credit Facility. The obligations under the Senior Credit Facility are secured by a security interest on substantially all of the assets of our wholly owned subsidiary, GCI Holdings, Inc. and the subsidiary guarantors, as defined in the Senior Credit Facility, and on the stock of GCI Holdings, Inc. The Wells Fargo note is subject to similar affirmative and negative covenants as the Senior Credit Facility and is secured by a security interest and lien on the building purchased with the funds. The 2025 and 2021 Note covenants restrict us and certain of our subsidiaries from incurring additional debt or entering into sale and leaseback transactions; paying dividends or distributions on capital stock or repurchase capital stock; issuing stock of subsidiaries; making certain investments; creating liens on assets to secure debt; entering into transactions with affiliates; merging or consolidating with another company; and transferring and selling assets. Limitations and exceptions to note covenants and events of default are described in the 2025 Notes and 2021 Notes indentures. We were in compliance with all covenants required by our notes and Senior Credit Facility as of December 31, 2016 . Maturities of long-term debt as of December 31, 2016 are as follows (amounts in thousands): Years ending December 31, 2017 $ 3,326 2018 3,344 2019 3,362 2020 3,380 2021 598,399 2022 and thereafter 686,972 Total debt 1,298,783 Less unamortized discount 3,518 Less unamortized deferred loan fees 15,133 Less current portion of long-term debt 3,326 Long-term debt, net $ 1,276,806 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Total income tax expense of $7.1 million , $0.1 million and $10.0 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, was allocated to income (loss) in each year. Income tax expense consists of the following (amounts in thousands): Years Ended December 31, 2016 2015 2014 Deferred tax expense (benefit): Federal taxes $ 6,058 290 9,081 State taxes 1,022 (209 ) 948 $ 7,080 81 10,029 Total income tax expense differed from the “expected” income tax expense (benefit) determined by applying the statutory federal income tax rate of 35% as follows (amounts in thousands): Years Ended December 31, 2016 2015 2014 “Expected” statutory tax expense (benefit) $ 1,891 (3,482 ) 24,246 Nondeductible officer compensation 1,424 1,906 1,351 Nondeductible lobbying expenses 1,192 442 425 Nondeductible entertainment expenses 1,029 1,059 1,125 State income tax expense (benefit), net of federal expense (benefit) 1,022 (209 ) 948 Impact of non-controlling interest attributable to non-tax paying entity — (220 ) (18,255 ) Other, net 522 585 189 $ 7,080 $ 81 $ 10,029 The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities at December 31, 2016 and 2015 are summarized below (amounts in thousands): 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 109,577 139,238 Deferred revenue for financial reporting purposes 59,993 41,151 Asset retirement obligations in excess of amounts recognized for tax purposes 16,808 14,338 Compensated absences accrued for financial reporting purposes 3,505 3,339 Share-based compensation expense for financial reporting purposes in excess of amounts recognized for tax purposes 3,393 2,773 Accounts receivable, principally due to allowance for doubtful receivables 1,965 1,912 Alternative minimum tax credits 1,735 1,735 Workers compensation and self-insurance health reserves, principally due to accrual for financial reporting purposes 1,705 1,795 Deferred compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes 1,687 1,603 Other 9,371 11,216 Total deferred tax assets $ 209,739 219,100 Deferred tax liabilities: Plant and equipment, principally due to differences in depreciation $ 245,118 246,172 Intangible assets 106,061 79,255 Other 345 1,746 Total deferred tax liabilities 351,524 327,173 Net deferred tax liabilities $ 141,785 108,073 At December 31, 2016 , we have tax net operating loss carryforwards of $268.0 million that will begin expiring in 2022 if not utilized, and alternative minimum tax credit carryforwards of $1.7 million available to offset regular income taxes payable in future years. Our utilization of remaining acquired net operating loss carryforwards is subject to annual limitations pursuant to Internal Revenue Code section 382 which could reduce or defer the utilization of these losses. Our tax net operating loss carryforwards are summarized below by year of expiration (amounts in thousands): Years ending December 31, Federal State 2022 6,178 7,474 2023 3,968 3,903 2024 722 — 2025 737 — 2026 150 — 2027 1,010 — 2028 39,879 39,715 2029 48,370 47,558 2031 110,933 109,376 2033 5,031 4,927 2034 39,133 37,866 2035 11,885 11,290 Total tax net operating loss carryforwards $ 267,996 262,109 Tax benefits associated with recorded deferred tax assets are considered to be more likely than not realizable through taxable income earned in carryback years, future reversals of existing taxable temporary differences, and future taxable income exclusive of reversing temporary differences and carryforwards. The amount of deferred tax assets considered realizable, however, could be reduced if estimates of future taxable income during the carryforward period are reduced. We file federal income tax returns in the U.S. and in various state jurisdictions. We are not subject to U.S. or state tax examinations by tax authorities for years 2012 and earlier except that certain U.S. federal income tax returns for years after 2001 are not closed by relevant statutes of limitations due to unused net operating losses reported on those income tax returns. We recognize accrued interest on unrecognized tax benefits in interest expense and penalties in selling, general and administrative expenses. We did not have any unrecognized tax benefits as of December 31, 2016 , 2015 and 2014 , and accordingly, we did not recognize any interest expense. Additionally, we recorded no penalties during the years ended December 31, 2016 , 2015 and 2014 . We did not record any excess tax benefit generated from stock options exercised during the years ended December 31, 2016 , 2015 and 2014 , since we are in a net operating loss carryforward position and the income tax deduction will not yet reduce income taxes payable. The cumulative excess tax benefits generated for stock options exercised that have not been recognized is $7.4 million at December 31, 2016 . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements Assets measured at fair value on a recurring basis as of December 31, 2016 and 2015 are as follows (amounts in thousands): December 31, 2016 Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Deferred compensation plan assets (mutual funds) $ 1,477 — — 1,477 December 31, 2015 Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Deferred compensation plan assets (mutual funds) $ 1,728 — — 1,728 (1) Quoted prices in active markets for identical assets (2) Observable inputs other than quoted prices in active markets for identical assets (3) Inputs that are generally unobservable and not corroborated by market data The fair value of our mutual funds is determined using quoted market prices in active markets utilizing market observable inputs. Current and Long-Term Debt The carrying amounts and approximate fair values of our current and long-term debt, excluding capital leases at December 31, 2016 and 2015 are as follows (amounts in thousands): December 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Current and long-term debt $ 1,280,133 1,317,222 1,293,296 1,314,864 The following methods and assumptions were used to estimate fair values: • The fair values of the 6.75% Senior Notes due 2021 and the 6.875% Senior Notes due 2025 are based upon quoted market prices for the same or similar issues (Level 2). • The fair value of our Senior Credit Facility and Wells Fargo note payable are estimated to approximate their carrying value because the instruments are subject to variable interest rates (Level 2). |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholder's Equity | Stockholder's Equity Common Stock We were incorporated in 1997 and issued 100 shares of our no par Class A common stock to GCI in our initial capitalization. We received all ownership interests in subsidiaries previously held by GCI and proceeds from GCI’s August 1, 1997 common stock offering. We recorded $206.6 million associated with our initial capitalization. All of our issued and outstanding Class A common stock is owned by GCI. Shared-Based Compensation GCI's Amended and Restated 1986 Stock Option Plan ("Stock Option Plan"), provides for the grant of restricted stock awards for a maximum of 15.7 million shares of GCI Class A common stock, subject to adjustment upon the occurrence of stock dividends, stock splits, mergers, consolidations or certain other changes in corporate structure or capitalization. If an award expires or terminates, the shares subject to the award will be available for further grants of awards under the Stock Option Plan. The Compensation Committee of GCI’s Board of Directors administers the Stock Option Plan. Substantially all restricted stock awards granted vest over periods of up to three years. The requisite service period of our awards is generally the same as the vesting period. New shares of GCI Class A common stock are issued when restricted stock awards are granted. We have 1.5 million shares available for grant under the Stock Option Plan at December 31, 2016 . The fair value of restricted stock awards is determined based on the number of shares granted and the quoted price of GCI's common stock. We record share-based compensation expense only for those awards expected to vest using an estimated forfeiture rate based on our historical pre-vesting forfeiture data. We review our forfeiture estimates annually and adjust our share-based compensation expense in the period our estimate changes. A summary of nonvested restricted stock award activity under the Stock Option Plan for the year ended December 31, 2016 , follows (share amounts in thousands): Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2016 1,495 $ 11.08 Granted 790 $ 17.87 Vested (817 ) $ 11.65 Forfeited (3 ) $ 16.09 Nonvested at December 31, 2016 1,465 $ 14.41 The weighted average grant date fair value of awards granted during the years ended December 31, 2016 , 2015 , and 2014 were $17.87 , $15.06 and $10.04 , respectively. The total fair value of awards vesting during the years ended December 31, 2016 , 2015 , and 2014 were $13.5 million , $17.0 million and $8.5 million , respectively. We have recorded share-based compensation expense of $11.0 million , $10.9 million , and $8.4 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Share-based compensation expense is classified as Selling, General and Administrative Expense in our Consolidated Statements of Operations. Unrecognized share-based compensation expense is $12.5 million as of December 31, 2016 . We expect to recognize share-based compensation expense over a weighted average period of 2.0 years for restricted stock awards. GCI 401(k) Plan In 1986, GCI adopted an Employee Stock Purchase Plan (“GCI 401(k) Plan”) qualified under Section 401 of the Internal Revenue Code of 1986. The GCI 401(k) Plan provides for acquisition of GCI’s Class A common stock at market value as well as various mutual funds. We may match a percentage of the employees' contributions up to certain limits, decided by GCI’s Board of Directors each year. Our matching contributions allocated to participant accounts totaled $11.0 million , $9.8 million and $9.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. We used cash to fund all of our employer-matching contributions during the years ended December 31, 2016 , 2015 and 2014 . |
Industry Segments Data
Industry Segments Data | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Industry Segments Data | Industry Segments Data We have two reportable segments, Wireless and Wireline. Our reportable segments are business units that offer different products and are each managed separately. A description of our reportable segments follows: Wireless - We offer wholesale wireless services. Wireline - We provide a full range of wireless, data, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions primarily in Alaska. We evaluate performance and allocate resources based on Adjusted EBITDA, which is defined as earnings plus imputed interest on financed devices before: • Net interest expense, • Income taxes, • Depreciation and amortization expense, • Loss on extinguishment of debt, • Software impairment charge, • Share-based compensation expense, • Accretion expense, • Loss attributable to non-controlling interest resulting from NMTC transactions, • Gains and impairment losses on equity and cost method investments, • Gain recorded for adjusting to fair value assets that were included as consideration paid to acquire a fiber system, and • Other non-cash adjustments. Management believes that this measure is useful to investors and other users of our financial information in understanding and evaluating operating performance as an analytical indicator of income generated to service debt and fund capital expenditures. In addition, multiples of current or projected Adjusted EBITDA are used to estimate current or prospective enterprise value. The accounting policies of the reportable segments are the same as those described in Note 1 of this Form 10-K. We have no intersegment sales. We earn all revenues through sales of services and products within the United States. All of our long-lived assets are located within the United States of America, except approximately 82% of our undersea fiber optic cable systems which transit international waters and all of our satellite transponders. Wireless plan fee and usage revenues from external customers are allocated between our Wireless and Wireline segments. The Wireless segment recorded subsidies to the Wireline segment related to wireless equipment sales based upon equipment sales and agreed-upon subsidy rates through the AWN transaction close on July 23, 2013. Subsequent to the transaction close and through March 31, 2014, although permitted, the Wireline segment was unable to meet the requirements in order to request a wireless equipment subsidy from the Wireless segment in accordance with the AWN agreements. These subsidies, which eliminate in consolidation, increase the Wireline segment Adjusted EBITDA and reduce the Wireless segment Adjusted EBITDA. The wireless equipment subsidy recorded by the Wireless segment was $0 million , $7.7 million , and $17.3 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Selling, general and administrative expenses are charged to the Wireless segment based upon a shared services agreement. The remaining selling, general and administrative expenses are charged to the Wireline segment. Summarized financial information for our reportable segments for the years ended December 31, 2016 , 2015 and 2014 follows (amounts in thousands): Wireless Wireline Total Reportable Segments 2016 Revenues Wholesale $ 208,109 — 208,109 Consumer — 340,460 340,460 Business services — 385,243 385,243 Total 208,109 725,703 933,812 Cost of Goods Sold 62,487 240,091 302,578 Contribution 145,622 485,612 631,234 Less SG&A (16,439 ) (341,917 ) (358,356 ) Plus share-based compensation expense — 11,043 11,043 Plus imputed interest on financed devices — 2,557 2,557 Plus accretion expense 252 977 1,229 Other — 337 337 Adjusted EBITDA $ 129,435 158,609 288,044 Capital expenditures $ 34,555 159,923 194,478 Goodwill $ 164,312 74,951 239,263 Total assets $ 601,796 1,464,143 2,065,939 Wireless Wireline Total Reportable Segments 2015 Revenues Wholesale $ 267,676 — 267,676 Consumer — 351,196 351,196 Business services — 359,662 359,662 Total 267,676 710,858 978,534 Cost of Good Sold 70,899 251,439 322,338 Contribution 196,777 459,419 656,196 Less SG&A (18,137 ) (320,242 ) (338,379 ) Plus share-based compensation expense — 10,902 10,902 Plus imputed interest on financed devices — 751 751 Plus accretion expense 559 562 1,121 Other expense — (240 ) (240 ) Adjusted EBITDA $ 179,199 151,152 330,351 Capital expenditures $ 47,892 128,343 176,235 Goodwill $ 164,312 74,951 239,263 Total assets $ 594,250 1,372,690 1,966,940 2014 Revenues Wholesale $ 269,977 — 269,977 Consumer — 288,014 288,014 Business Services — 352,207 352,207 Total 269,977 640,221 910,198 Cost of Good Sold 90,920 211,784 302,704 Contribution 179,057 428,437 607,494 Less SG&A (21,631 ) (272,016 ) (293,647 ) Plus share-based compensation expense — 8,392 8,392 Plus accretion expense 733 516 1,249 Other expense — (372 ) (372 ) Adjusted EBITDA $ 158,159 164,957 323,116 Capital expenditures $ 30,243 145,866 176,109 Goodwill $ 164,312 65,248 229,560 Total assets $ 625,417 1,367,344 1,992,761 A reconciliation of consolidated income (loss) before income taxes to reportable segment Adjusted EBITDA follows (amounts in thousands): Years Ended December 31, 2016 2015 2014 Consolidated income (loss) before income taxes $ 5,404 (9,951 ) 69,273 Plus other expense, net 73,699 116,162 74,289 Consolidated operating income 79,103 106,211 143,562 Plus depreciation and amortization expense 193,775 181,767 170,285 Plus share-based compensation expense 11,043 10,902 8,392 Plus imputed interest on financed devices 2,557 751 — Plus accretion expense 1,229 1,121 1,249 Plus software impairment charge — 29,839 — Other 337 (240 ) (372 ) Reportable segment Adjusted EBITDA $ 288,044 330,351 323,116 We earn revenues included in both the Wireless and Wireline segment from a major customer. We had no major customers for the year ended December 31, 2016. We earned revenues from a major customer, net of discounts, of $130.8 million or 13% , and $108.3 million or 12% of total consolidated revenues for the years ended December 31, 2015 , and 2014 respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We entered into a long-term capital lease agreement in 1991 with the wife of GCI’s President and CEO for property occupied by us. The leased asset was capitalized in 1991 at the owner’s cost of $0.9 million and the related obligation was recorded. The lease agreement was amended in April 2008 and our existing capital lease asset and liability increased by $1.3 million to record the extension of this capital lease. The amended lease terminates on September 30, 2026. In January 2001 we entered into an aircraft operating lease agreement with a company owned by GCI’s President and CEO. The lease was amended several times, most recently in May 2011. The lease term of the aircraft may be terminated at any time by us upon 12 months’ written notice. The monthly lease rate of the aircraft is $132,000 . In 2001, we paid a deposit of $1.5 million in connection with the lease. The deposit will be repaid to us no later than six months after the agreement terminates. ACS was a related party for financial statement reporting purposes through the date of the Wireless Acquisition on February 2, 2015. Included in our related party disclosures were ACS' provision to us of local service lines and network capacity in locations where we did not have our own facilities, our provision to ACS of wholesale wireless services for their use of our network to sell services to their respective retail customers, and our receipt of ACS' high cost support from USF for its wireless customers. For the period January 1, 2015 to February 2, 2015, we paid ACS $6.2 million and received $8.1 million in payments from ACS. For the year ended December 31, 2014 , we paid ACS $62.9 million and received $50.9 million in payments from ACS. We also have long-term capacity exchange agreements with ACS for which no money is exchanged. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Variable Interest Entities | Variable Interest Entities New Markets Tax Credit Entities We have entered into several arrangements under the NMTC program with US Bancorp to help fund a project that extended terrestrial broadband service for the first time to rural Northwestern Alaska communities via a high capacity hybrid fiber optic and microwave network (“TERRA-NW”). The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the “Act”) to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their federal income taxes for up to 39% of qualified investments in the equity of community development entities (“CDEs”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments. On August 30, 2011, we entered into the first arrangement (“NMTC #1”). In connection with the NMTC #1 transaction, we loaned $58.3 million to TIF, a special purpose entity created to effect the financing arrangement, at 1% interest due August 30, 2041. Simultaneously, US Bancorp invested $22.4 million in TIF. TIF then contributed US Bancorp’s contribution and the loan proceeds to certain CDEs. The CDEs, in turn, loaned the $76.8 million in funds less payment of placement fees, at interest rates varying from 1% to 3.96% , to our wholly owned subsidiary, Unicom, Inc. ("Unicom") as partial financing for TERRA-NW. On October 3, 2012, we entered into the second arrangement (“NMTC #2”). In connection with the NMTC #2 transaction we loaned $37.7 million to TIF 2 and TIF 2-USB, special purpose entities created to effect the financing arrangement, at 1% interest due October 2, 2042. Simultaneously, US Bancorp invested $17.5 million in TIF 2 and TIF 2-USB. TIF 2 and TIF 2-USB then contributed US Bancorp’s contributions and the loan proceeds to certain CDEs. The CDEs, in turn, loaned the $55.2 million in funds less payment of placement fees, at interest rates varying from 0.7099% to 0.7693% , to Unicom, as partial financing for TERRA-NW. On December 11, 2012, we entered into the third arrangement (“NMTC #3”). In connection with the NMTC #3 transaction we loaned $8.2 million to TIF 3, a special purpose entity created to effect the financing arrangement, at 1% interest due December 10, 2042. Simultaneously, US Bancorp invested $3.8 million in TIF 3. TIF 3 then contributed US Bancorp’s contributions and the loan proceeds to a CDE. The CDE, in turn, loaned the $12.0 million in funds less payment of placement fees, at an interest rate of 1.35% , to Unicom, as partial financing for TERRA-NW. US Bancorp is the sole investor in TIF, TIF 2, TIF 2-USB and TIF 3, and as such, is entitled to substantially all of the benefits derived from the NMTCs. All of the loan proceeds to Unicom, net of syndication and arrangement fees, were restricted for use on TERRA-NW. Restricted cash of $0.9 million and $1.1 million was held by Unicom at December 31, 2016 and 2015 , respectively, and is included in our Consolidated Balance Sheets. We completed construction of TERRA-NW and placed the final phase into service in 2014. These transactions include put/call provisions whereby we may be obligated or entitled to repurchase US Bancorp’s interests in TIF, TIF 2, TIF 2-USB and/or TIF 3. We believe that US Bancorp will exercise the put options in August 2018, October 2019 and December 2019, at the end of the compliance periods for NMTC #1, NMTC #2 and NMTC #3, respectively. The NMTCs are subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code. We are required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangements. Non-compliance with applicable requirements could result in projected tax benefits not being realized by US Bancorp. We have agreed to indemnify US Bancorp for any loss or recapture of NMTCs until such time as our obligation to deliver tax benefits is relieved. There have been no credit recaptures as of December 31, 2016 . The value attributed to the put/calls is nominal. We have determined that TIF, TIF 2, TIF 2-USB and TIF 3 are VIEs. The consolidated financial statements of TIF, TIF 2, TIF 2-USB and TIF 3 include the CDEs discussed above. The ongoing activities of the VIEs – collecting and remitting interest and fees and NMTC compliance – were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the VIEs. Management considered the contractual arrangements that obligate us to deliver tax benefits and provide various other guarantees to US Bancorp; US Bancorp’s lack of a material interest in the underlying economics of the project; and the fact that we are obligated to absorb losses of the VIEs. We concluded that we are the primary beneficiary of each and consolidated the VIEs in accordance with the accounting standard for consolidation. US Bancorp’s contributions, net of syndication fees and other direct costs incurred in structuring the NMTC arrangements, are included in Non-controlling Interests on the Consolidated Balance Sheets. Incremental costs to maintain the structure during the compliance period are recognized as incurred to selling, general and administrative expense. The assets and liabilities of our consolidated VIEs were $140.9 million and $104.2 million , respectively, as of December 31, 2016 and 2015 . The assets of the VIEs serve as the sole source of repayment for the debt issued by these entities. US Bank does not have recourse to us or our other assets, with the exception of customary representations and indemnities we have provided. We are not required and do not currently intend to provide additional financial support to these VIEs. While these subsidiaries are included in our consolidated financial statements, these subsidiaries are separate legal entities and their assets are legally owned by them and not available to our creditors. Equity Method Investment We owned a 40.8% interest in a next generation carrier-class communications services firm that we accounted for using the equity method and due to a reconsideration event determined that the entity was a VIE. During the second quarter of 2015, it became apparent that we would not recover the carrying value of our investment. We determined that the fair value of the equity investment was $ 0 and subsequently wrote-off the entire value of our investment resulting in an impairment loss of $12.6 million for the year ended December 31, 2015 that is recorded in Other Income (Expense) in our Consolidated Statement of Operations. The fair value determination was based upon market information obtained during the second quarter of 2015, the estimated liquidation value of the entity's assets and the amount of senior secured debt at the valuation date. The entity has subsequently closed its operations and is in the process of selling its assets. We do not have a contractual obligation to provide additional financing and we have no exposure to loss related to our involvement with the VIE. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases as Lessee We lease business offices, have entered into site lease agreements, and use satellite transponder and fiber capacity and certain equipment pursuant to operating lease arrangements. Many of our leases are for multiple years and contain renewal options. Rental costs under such arrangements amounted to $58.9 million , $51.5 million and $43.8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Capital Leases as Lessee We entered into a long-term capital lease agreement in 1991 with the wife of GCI’s President and CEO for property occupied by us as further described in Note 12 of this Form 10-K. We have a capital lease agreement for transponder capacity on Intelsat, Ltd.’s (“Intelsat”) Galaxy 18 spacecraft. The Intelsat Galaxy 18 C-band and Ku-Band transponders are being leased over an expected term of 14 years. At lease inception the present value of the lease payments, excluding telemetry, tracking and command services and back-up protection, was $98.6 million . A summary of future minimum lease payments follows (amounts in thousands): Years ending December 31: Operating Capital 2017 $ 46,249 13,433 2018 35,822 13,440 2019 27,525 13,450 2020 22,047 13,459 2021 16,797 12,044 2022 and thereafter 37,063 7,705 Total minimum lease payments $ 185,503 73,531 Less amount representing interest 13,884 Less current maturity of obligations under capital leases 9,331 Long-term obligations under capital leases, excluding current maturity $ 50,316 The leases generally provide that we pay the taxes, insurance and maintenance expenses related to the leased assets. Several of our leases include renewal options, escalation clauses and immaterial amounts of contingent rent expense. We expect that in the normal course of business leases that expire will be renewed or replaced by leases on other properties. Guaranteed Service Levels Certain customers have guaranteed levels of service with varying terms. In the event we are unable to provide the minimum service levels we may incur penalties or issue credits to customers. Self-Insurance Through December 31, 2016 , we were self-insured for losses and liabilities related to health and welfare claims up to $700,000 per incident per year above which third party insurance applied. A reserve of $4.0 million and $4.1 million are recorded at December 31, 2016 and 2015 , respectively, to cover estimated reported losses, estimated unreported losses based on past experience modified for current trends, and estimated expenses for settling claims. We are self-insured for all losses and liabilities related to workers’ compensation claims in Alaska and have a workers compensation excess insurance policy to make claims for any losses in excess of $500,000 per incident. A reserve of $2.9 million and $3.6 million are recorded at December 31, 2016 and 2015 , respectively, to cover estimated reported losses and estimated expenses for open and active claims. Actual losses will vary from the recorded reserves. While we use what we believe are pertinent information and factors in determining the amount of reserves, future additions or reductions to the reserves may be necessary due to changes in the information and factors used. We are self-insured for damage or loss to certain of our transmission facilities, including our buried, undersea, and above-ground transmission lines. If we become subject to substantial uninsured liabilities due to damage or loss to such facilities, our financial position, results of operations or liquidity may be adversely affected. Litigation, Disputes, and Regulatory Matters We are involved in various lawsuits, billing disputes, legal proceedings, and regulatory matters that have arisen from time to time in the normal course of business. Management believes there are no proceedings from asserted and unasserted claims which if determined adversely would have a material adverse effect on our financial position, results of operations or liquidity. Universal Service As an ETC, we receive support from the USF for the provision of wireline local access and wireless service in Remote and Urban high cost areas as further described in Note 1 of this Form 10-K. For both Remote and Urban high cost support revenue, our ability to collect our accrued USF support is contingent upon continuation of the USF program and upon our eligibility to participate in that program, which are subject to change by future regulatory, legislative or judicial actions. We adjust revenue and the account receivable in the period the FCC makes a program change or we assess the likelihood that such a change has increased or decreased revenue. Our revenue for providing local and wireless services in these areas would be materially adversely affected by a substantial reduction of USF support. Tribal Mobility Fund I Grant In February 2014, the FCC announced our winning bids in the Tribal Mobility Fund I auction for a $41.4 million grant to partially fund expansion of our 3G wireless network, or better, to locations in Alaska where we would not otherwise be able to construct within our return-on-investment requirements. We received $0 million and $13.8 million in 2016 and 2015 , respectively, and expect to receive $27.6 million in additional grant fund disbursements in the future depending on the timing of upgrades completed and test results submitted to and approved by the FCC. |
Software Impairment
Software Impairment | 12 Months Ended |
Dec. 31, 2016 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Software Impairment | Software Impairment During the years ended December 31, 2013 and 2014, we internally developed computer software in our Wireline segment to replace our wireless, Internet, video, local service, and long distance customer billing systems. During the first quarter of 2015, we completed a detailed assessment of our progress to date and determined it was no longer probable that the computer software being developed would be completed and placed in service. Our assessment concluded that the cost of continuing the development would be much higher than originally estimated, and the timing and scope risks were substantial. We identified development work, hardware, and software recorded as Construction in Progress through the first quarter of 2015, that may be applicable to our replacement customer billing solution, future internally developed software, and other system needs and therefore should remain capital assets. We considered the remaining capital expenditures for this billing system to have a fair value of $0 and recorded an impairment charge of $20.7 million during the year ended December 31, 2015 by recording an expense which is included in Software Impairment Charge in our Consolidated Statement of Operations. During the year ended December 31, 2015 , we reassessed our plans for our internally developed machine-to-machine billing system in our Wireline segment, and decided to no longer market this system to third parties. Accordingly, we recognized an impairment of $7.1 million during the year ended December 31, 2015 by recording an expense which is included in Software Impairment Charge in our Consolidated Statement of Operations. During the year ended December 31, 2015 , we evaluated user management software we purchased in 2014 in our Wireline segment and determined that we would not be able to use the software. Accordingly we recognized an impairment of $1.0 million during the year ended December 31, 2015 by recording an expense which is included in Software Impairment Charge in our Consolidated Statement of Operations. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2016 and 2015 (amounts in thousands): First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Total revenues $ 231,098 233,766 236,655 232,293 Operating income $ 20,019 19,531 26,368 13,185 Net income (loss) $ 326 (422 ) (973 ) (607 ) Net income (loss) attributable to GCI, Inc. $ 443 (305 ) (857 ) (488 ) 2015 Total revenues $ 231,089 247,528 258,573 241,344 Operating income $ 816 39,257 45,549 20,589 Net income (loss) $ (17,721 ) (14,701 ) 19,802 2,588 Net income (loss) attributable to GCI, Inc. $ (18,246 ) (14,622 ) 19,918 2,759 |
Business and Summary of Signi23
Business and Summary of Significant Accounting Principles (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Our consolidated financial statements include the consolidated accounts of GCI, Inc. and its wholly owned subsidiaries, The Alaska Wireless Network, LLC ("AWN") of which we owned a two-third interest through February 2, 2015 when we purchased the remaining one-third interest, and four variable interest entities (“VIEs”) for which we are the primary beneficiary after providing certain loans and guarantees. These VIEs are Terra GCI Investment Fund, LLC (“TIF”), Terra GCI 2 Investment Fund, LLC (“TIF 2”), Terra GCI 2-USB Investment Fund, LLC (“TIF 2-USB”) and Terra GCI 3 Investment Fund, LLC (“TIF 3”). We also include in our consolidated financial statements non-controlling interests in consolidated subsidiaries for which our ownership is less than 100 percent. All significant intercompany transactions between non-regulated affiliates of our company are eliminated. Intercompany transactions generated between regulated and non-regulated affiliates of our company are not eliminated in consolidation. |
Non-controlling Interests | Non-controlling Interests Non-controlling interests represent the equity ownership interests in consolidated subsidiaries not owned by us. Non-controlling interests are adjusted for contributions, distributions, and income and loss attributable to the non-controlling interest partners of the consolidated entities. Income and loss is allocated to the non-controlling interests based on the respective governing documents. |
Acquisitions | We have accounted for the AWN NCI Acquisition as the acquisition of a non-controlling interest in accordance with Accounting Standards Codification ("ASC") 810, Consolidation, and the Acquired ACS Assets as the acquisition of assets that do not constitute a business in accordance with ASC 805-50, Business Combinations - Related Issues. |
Recently Issued Accounting Pronouncements and Recently Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. This standard provides guidance for the recognition, measurement and disclosure of revenue resulting from contracts with customers and will supersede virtually all of the current revenue recognition guidance under GAAP. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. In March 2016, the FASB issued ASU 2016-08, which amended the guidance in the new standard in order to clarify the principal versus agent assessment and is intended to make the guidance more operable and lead to more consistent application. In April 2016, the FASB issued ASU 2016-10, which clarifies the identification of performance obligations and the licensing implementation guidance in ASU 2014-09. In May 2016, the FASB issued ASU 2016-11, which rescinds SEC paragraphs pursuant to SEC staff announcements regarding ASU 2014-09. These rescissions include changes to topics pertaining to accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer. In May 2016, the FASB issued ASU 2016-12, which provides clarifying guidance in certain narrow areas and adds some practical expedients to ASU 2014-09. Finally, ASU 2016-20 makes minor corrections or improvements to ASU 2014-09 that are not expected to have a significant effect on accounting practices under ASU 2014-09. The standard permits the use of either the retrospective or cumulative effect transition method. We anticipate using the retrospective method to adopt this standard. Early adoption is permitted for annual periods beginning after December 15, 2016, however, we do not plan to early adopt this standard. We have assessed our material revenue streams and we do not anticipate significant changes to our revenue recognition as a result of this new standard. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lease accounting by the lessor remains largely unchanged by the new standard. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and is required to be adopted using the modified retrospective approach. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations, but we expect that adoption will have a material impact on our long-term assets and liabilities. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC 718, Compensation - Stock Compensation. The update includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted with any adjustments reflected as of the beginning of the fiscal year of adoption. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The update introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate consideration of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and is required to be adopted using the modified retrospective approach. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update addresses eight specific cash flow issues with the objective of reducing diversity in practice. The issues identified within the ASU include: debt prepayments or extinguishment costs; contingent consideration made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identified cash flows and application of the predominance principle. ASU 2016-15 is effective for annual and interim reporting periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for annual and interim reporting periods. The adoption of this guidance is not expected to have a material effect on our statement of cash flows. (f) Recently Adopted Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 requires an entity to present debt issuance costs related to a recognized debt liability in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. In August 2015, the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements which clarifies that the guidance in ASU 2015-03 does not apply to line-of-credit arrangements. According to ASU 2015-15, line-of-credit arrangements will continue to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issue costs ratably over the term of the arrangement. We adopted ASU 2015-03 retrospectively as of January 1, 2016, and have reclassified $15.4 million of the December 31, 2015, Deferred Loan and Senior Note Costs, Net of Amortization balance included in Total Other Assets to Long-Term Debt, Net included in Total Liabilities. In April 2015, the FASB issued ASU 2015-05, Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. The ASU provides guidance in evaluating whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for as an acquisition of a software license. If the arrangement does not contain a software license, it should be accounted for as a service contract. We adopted ASU 2015-05 prospectively as of January 1, 2016. The adoption of this standard did not have a significant effect on our financial position or results of operations. In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Updates. The amendments in this update cover a wide range of topics in the codification and are generally categorized as follows: Amendments Related to Differences between Original Guidance and the Codification; Guidance Clarification and Reference Corrections; Simplification; and, Minor Improvements. We adopted ASU 2015-10 as of January 1, 2016. The adoption of this standard did not have a significant effect on our financial position or results of operations. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. Under ASU 2015-11, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. We adopted ASU 2015-11 prospectively as of April 1, 2016. The adoption of this standard did not have a significant effect on our financial position or results of operations. In January 2017, the FASB issued an ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. We adopted and applied ASU 2017-01 to a transaction that we closed in November 2016 (see Note 5 of this Form 10-K for information on the transaction). |
Regulatory Accounting | Regulatory Accounting We account for the regulated operations of our incumbent local exchange carriers in accordance with the accounting principles for regulated enterprises. This accounting recognizes the economic effects of rate regulation by recording cost and a return on investment as such amounts are recovered through rates authorized by regulatory authorities. Accordingly, plant and equipment is depreciated over lives approved by regulators and certain costs and obligations are deferred based upon approvals received from regulators to permit recovery of such amounts in future years. Our cost studies and depreciation rates for our regulated operations are subject to periodic audits that could result in a change to recorded revenues. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of certificates of deposit which have an original maturity of three months or less at the date acquired and are readily convertible into cash. |
Accounts Receivable and Allowance for Doubtful Receivables | Accounts Receivable and Allowance for Doubtful Receivables Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful receivables is our best estimate of the amount of probable credit losses in our existing accounts receivable. We base our estimates on the aging of our accounts receivable balances, financial health of specific customers, regional economic data, changes in our collections process, regulatory requirements and our customers’ compliance with Universal Service Administrative Company rules. We review our allowance for doubtful receivables methodology at least annually. Depending upon the type of account receivable our allowance is calculated using a pooled basis with an allowance for all accounts greater than 120 days past due, a pooled basis using a percentage of related accounts, or a specific identification method. When a specific identification method is used, potentially uncollectible accounts due to bankruptcy or other issues are reviewed individually for collectability. Account balances are charged off against the allowance when we feel it is probable the receivable will not be recovered. We do not have any off-balance-sheet credit exposure related to our customers. Wireless Equipment Installment Plan ("EIP") Receivables We offer new and existing wireless customers the option to participate in Upgrade Now, a program that provides eligible customers with the ability to purchase certain wireless devices in installments over a period of up to 24 months. Participating customers have the right to trade-in the original equipment for a new device after making the equivalent of 12 monthly installment payments, provided their handset is in good working condition. Upon upgrade, the outstanding balance of the EIP is exchanged for the used handset. At the time of sale, we impute interest on the receivables associated with Upgrade Now. We record the imputed interest as a reduction to the related accounts receivable. Interest income, which is included in Other Income and (Expense) in our Consolidated Statements of Operations, is recognized over the financed installment term. We assess the collectability of our EIP receivables based upon a variety of factors, including payment trends and other qualitative factors. The credit profiles of our customers with a Upgrade Now plan are similar to those of our customers with a traditional subsidized plan. Customers with a credit profile which carries a higher risk are required to make a down payment for equipment financed through Upgrade Now. |
Inventories | Inventories Wireless handset inventories are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. Handset costs in excess of the revenues generated from handset sales, or handset subsidies, are expensed at the time of sale. We do not recognize the expected handset subsidies prior to the time of sale because the promotional discount decision is made at the point of sale and/or because we expect to recover the handset subsidies through service revenue. Inventories of other merchandise for resale and parts are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost. Construction costs of facilities are capitalized. Equipment financed under capital leases is recorded at the lower of fair market value or the present value of future minimum lease payments at inception of the lease. Construction in progress represents transmission equipment and support equipment and systems not placed in service on December 31, 2016 , that management intends to place in service during 2017 and 2018. Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable, in the following ranges: Asset Category Asset Lives Telephony transmission equipment and distribution facilities 5-20 years Fiber optic cable systems 15-25 years Cable transmission equipment and distribution facilities 5-30 years Support equipment and systems 3-20 years Transportation equipment 5-13 years Property and equipment under capital leases 12-20 years Buildings 25 years Customer premise equipment 2-20 years Studio equipment 10-15 years Amortization of property and equipment under capital leases is included in Depreciation and Amortization Expense in our Consolidated Statements of Operations. Repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments are capitalized. Accumulated depreciation is removed and gains or losses are recognized at the time of sales or other dispositions of property and equipment. |
Depreciation | Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable, in the following ranges: Asset Category Asset Lives Telephony transmission equipment and distribution facilities 5-20 years Fiber optic cable systems 15-25 years Cable transmission equipment and distribution facilities 5-30 years Support equipment and systems 3-20 years Transportation equipment 5-13 years Property and equipment under capital leases 12-20 years Buildings 25 years Customer premise equipment 2-20 years Studio equipment 10-15 years |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Goodwill, cable certificates (certificates of convenience and public necessity), wireless licenses and broadcast licenses are not amortized. Cable certificates represent certain perpetual operating rights to provide cable services. Wireless licenses represent the right to utilize certain radio frequency spectrum to provide wireless communications services. Broadcast licenses represent the right to broadcast television stations in certain areas. Goodwill represents the excess of cost over fair value of net assets acquired in connection with a business acquisition. All other amortizable intangible assets are being amortized over 2 to 20 year periods using the straight-line method. |
Impairment of Intangibles, Goodwill, and Long-lived Assets | Impairment of Intangibles, Goodwill, and Long-lived Assets Cable certificates, wireless licenses and broadcast licenses are treated as indefinite-lived intangible assets and are tested annually for impairment or more frequently if events and circumstances indicate that the asset might be impaired. We assessed qualitative factors (“Step Zero”) in our annual test over our cable certificate, wireless license and broadcast license assets as of October 31, 2016 to determine if it is more likely than not that those intangible assets are impaired and require further analysis. As part of our Step Zero analysis, we considered our own economic position, estimated future growth, and geographic and industry economic outlooks. These estimates and assumptions have a significant impact on our analysis. The quantitative impairment test ("Step One") for identifiable indefinite-lived intangible assets other than goodwill consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. After an impairment loss is recognized, the adjusted carrying amount of the asset becomes its new accounting basis. Impairment testing of our cable certificate, wireless license and broadcast license assets as of October 31, 2015 , used a direct discounted cash flow method. This approach requires us to make estimates and assumptions including projected cash flows and discount rates. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such impairment charge. Our goodwill is tested annually for impairment, and is tested for impairment more frequently if events and circumstances indicate that the assets might be impaired. We used a Step Zero analysis for goodwill impairment as of October 31, 2016 to determine whether it is more likely than not that goodwill is impaired. We considered qualitative factors such as our economic position, estimated future growth, geographic and industry economic outlooks, and the margin by which our fair value exceeded the book value in 2015. These estimates and assumptions have a significant impact on our analysis. For goodwill impairment testing as of October 31, 2015, we used the quantitative two-step process. The first step of the quantitative goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount. To determine our reporting units, we evaluated the components one level below the segment level and we aggregated the components if they had similar economic characteristics. As a result of this assessment, our reporting units were the same as our two reportable segments. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill that would be recognized in a business combination. We used an income approach to determine the fair value of our reporting units for purposes of our goodwill impairment test. In addition, a market-based approach is used where possible to corroborate the fair values determined by the income approach. The income approach requires us to make estimates and assumptions including projected cash flows and discount rates. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such impairment charge. We completed our annual goodwill and intangibles review and no impairment charge was recorded for the years ended December 31, 2016 , 2015 and 2014 . Long-lived assets, such as property, plant, and equipment, and purchased or developed intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of an asset group to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. During the year ended December 31, 2015, we recorded impairment charges related to our long-lived software assets (see Note 15 of this Form 10-K for detailed information). We recorded no impairment charges related to our long lived assets for the years ended December 31, 2016 and 2014 . |
Amortization and Write-off of Loan Fees and Interest Expense | Interest Expense Material interest costs incurred during the construction period of non-software capital projects are capitalized. Interest costs incurred during the development period of a software capital project are capitalized. Interest is capitalized in the period commencing with the first expenditure for a qualifying capital project and ending when the capital project is substantially complete and ready for its intended use. Amortization and Write-off of Loan Fees Debt issuance costs are deferred and amortized using the effective interest method. If a refinancing or amendment of a debt instrument is a substantial modification, all or a portion of the applicable debt issuance costs are written off. If a debt instrument is repaid prior to the maturity date we will write-off the related unamortized amount of debt issuance costs. |
Investments | Investments We hold investments in equity method and cost method investees. Investments in equity method investees are those for which we have the ability to exercise significant influence but do not control and are not the primary beneficiary. Significant influence typically exists if we have a 20% to 50% ownership interest in the venture unless persuasive evidence to the contrary exists. Under this method of accounting, we record our proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Cash payments to equity method investees such as additional investments, loans and advances and expenses incurred on behalf of investees, as well as payments from equity method investees such as dividends, distributions and repayments of loans and advances are recorded as adjustments to investment balances. Investments in entities in which we have no control or significant influence are accounted for under the cost method. We review our investment portfolio each reporting period to determine whether there are events or circumstances that would indicate there is a decline in the fair value that would be considered other than temporary. |
Asset Retirement Obligations | Asset Retirement Obligations We record the fair value of a liability for an asset retirement obligation in the period in which it is incurred in Other Liabilities on the Consolidated Balance Sheets. When the liability is initially recorded, we capitalize a cost by increasing the carrying amount of the related long-lived asset. In periods subsequent to initial measurement, changes in the liability for an asset retirement obligation resulting from revisions to either the timing or the amount of the original estimate of undiscounted cash flows are recognized. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, we either settle the obligation for its recorded amount or incur a gain or loss upon settlement. The majority of our asset retirement obligations are the estimated cost to remove telephony transmission equipment and support equipment from leased property. |
Revenue Recognition | Revenue Recognition All revenues are recognized when the earnings process is complete. Revenue recognition is as follows: • Revenues generated from long-distance service usage and plan fees, Internet service excess usage, and managed services are recognized when the services are provided, • We recognize unbilled revenues when the service is provided based upon minutes of use processed, and/or established rates, net of credits and adjustments, • Video service package fees, local access and Internet service plan fees, and data network revenues are billed in advance, recorded as Deferred Revenue on the balance sheet, and are recognized as the associated service is provided, • Certain of our wireless services offerings have been determined to be revenue arrangements with multiple deliverables. Revenues are recognized as each element is earned based on objective evidence regarding the relative fair value of each element and when there are no undelivered elements that are essential to the functionality of the delivered elements. Revenues generated from wireless service usage and plan fees are recognized when the services are provided. Revenues generated from the sale of wireless handsets and accessories are recognized when the amount is known and title to the handset and accessories passes to the customer. As the non-refundable, up-front activation fee charged to the customer does not meet the criteria as a separate unit of accounting, we allocate the additional arrangement consideration received from the activation fee to the handset (the delivered item) to the extent that the aggregate handset and activation fee proceeds do not exceed the fair value of the handset. Any activation fees not allocated to the handset would be deferred upon activation and recognized as service revenue on a straight-line basis over the expected customer relationship period, • We offer new and existing wireless customers the option to participate in Upgrade Now, a program that is described above in Note 1 of this Form 10-K. Upgrade Now is a multiple-element arrangement typically consisting of the trade-in right, handset, and one month of wireless service. At the inception of the arrangement, revenue is allocated between the separate units of accounting based upon each components' relative selling price on a standalone basis. This is subject to the requirement that revenue recognized is limited to the amounts already received from the customer that are not contingent on the delivery of additional products or services to the customer in the future. We recognize the full amount of the fair value of the trade-in right (not an allocated value) as a guarantee liability and the remaining allocable consideration is allocated to the handset and wireless service. We recognize revenue for the entire amount of the EIP receivable at the time of sale, net of the fair value of the trade-in right guarantee and imputed interest. See also in Note 1 of this Form 10-K additional information on guarantee liabilities and EIP receivables. • The majority of our non-wireless equipment sale transactions involve the sale of communications equipment with no other services involved. Such equipment is subject to standard manufacturer warranties and we do not manufacture any of the equipment we sell. In such instances, the customer takes title to the equipment generally upon delivery. We recognize revenue for such transactions when title passes to the customer and the revenue is earned and realizable. On certain occasions we enter into agreements to sell and satisfactorily install or integrate telecommunications equipment for a fixed fee. Customers may have refund rights if the installed equipment does not meet certain performance criteria. We defer revenue recognition until we have received customer acceptance per the contract or agreement, and all other required revenue recognition elements have been achieved. Revenues from contracts with multiple element arrangements, such as those including installation and integration services, are recognized as each element is earned based on objective evidence regarding the relative fair value of each element and when there are no undelivered elements that are essential to the functionality of the delivered elements, • Technical services revenues are derived primarily from maintenance contracts on equipment and are recognized on a prorated basis over the term of the contracts, • We account for fiber capacity Indefeasible Right to Use ("IRU") agreements as an operating lease or service arrangement and we defer the revenue and recognize it ratably over the life of the IRU or as service is rendered, • Access revenue is recognized when earned. We participate in an intrastate access revenue pool with other telephone companies. The pool is funded by access charges regulated by the Regulatory Commission of Alaska ("RCA") within the intrastate jurisdiction These revenues are subject to adjustment in future accounting periods as based upon adjustments made by all pool participants and Interexchange carrier customers. To the extent that a dispute arises over revenue settlements, our policy is to defer revenue recognition until the dispute is resolved, • We receive grant revenue for the purpose of building or operating communication infrastructure in rural areas. We defer the revenue and recognize it over the life of the asset that was constructed using grant funds or the period of grant compliance, • We offer sales incentives to new and existing customers as motivation to purchase our products and services. Cash incentives are recorded as an offset to revenue while noncash incentives are recorded as an operating expense. Sales incentives that relate to a customer contract over a specific period of time are recognized using the straight-line method over the contract term. For sales incentives that are earned by the customer over a specific period of time, we accrue an estimated offset to revenue or expense amount over the period that the incentive is earned by the customer, • Other revenues are recognized when the service is provided. Universal Service Fund As an Eligible Telecommunications Carrier ("ETC"), we receive support from the Universal Service Fund ("USF") to support the provision of wireline local access and wireless service in high cost areas. On August 31, 2016, the FCC published a Report and Order to reform the methodology for distributing USF high cost support for both wireline and wireless voice and broadband service (“Alaska High Cost Order”). The Alaska High Cost Order was a significant program change that required a reassessment of our high cost support revenue recognition. Remote High Cost Support Prior to the Alaska High Cost Order, we accrued estimated program revenue based on current line counts and the frozen per-line rates, reduced as needed by our estimate of the impact of the Statewide Support Cap. Additionally, we also considered our assessment of the impact of current FCC regulations and of the potential outcome of FCC proceedings. As of January 1, 2017, Remote high cost support payments to Alaska High Cost participants will be frozen on a per-company basis at adjusted December 2014 levels for a ten-year term in exchange for meeting individualized performance obligations to offer voice and broadband services meeting the service obligations at specified minimum speeds by five-year and ten-year service milestones to a specified number of locations. Remote high cost support is no longer dependent upon line counts and line count filings are no longer required. As a result of the Alaska High Cost Order, we apply the proportional performance revenue recognition method to account for the transition from accruals based on line counts to a fixed payment stream while our level of service provided and associated costs remain constant. Included in the calculation are the scheduled Remote high cost support payments from September 2016 through January 2027 net of our Remote accounts receivable balance at August 31, 2016. An equal amount of this result is recognized as Remote support revenue each period. In 2022, the FCC may redistribute support in areas with duplicative LTE service. We will account for any changes made by the FCC to redistribute support prospectively. Urban High Cost Support Prior to the Alaska High Cost Order, Urban high cost support payments were frozen and had phased down to 60% of the monthly average of the 2011 annual support. The Alaska High Cost Order mandates that as of January 1, 2017, Urban high cost support for 2017 and 2018 will be two-thirds and one-third of the December 2014 level of support received, respectively, with Urban high cost support ending effective December 31, 2018. We apply the proportional performance revenue recognition method to account for the impact of the declining payments while our level of service provided and associated costs remain constant. Included in the calculation are the scheduled Urban high cost support payments from September 2016 through January 2018 net of our Urban accounts receivable balance at August 31, 2016. An equal amount of this result is recognized as Urban support revenue each period. For both Remote and Urban high cost support revenue, our ability to collect our accrued USF support is contingent upon continuation of the USF program and upon our eligibility to participate in that program, which are subject to change by future regulatory, legislative or judicial actions. We adjust revenue and the account receivable in the period the FCC makes a program change or we assess the likelihood that such a change has increased or decreased revenue. We do not recognize revenue related to a particular service area until our ETC status has been approved by the RCA. |
Advertising Expense | Advertising Expense We expense advertising costs in the period during which the first advertisement appears. |
Leases | Leases Scheduled operating lease rent increases are amortized over the expected lease term on a straight-line basis. Rent holidays are recognized on a straight-line basis over the operating lease term (including any rent holiday period). Leasehold improvements are amortized over the shorter of their economic lives or the lease term. We may amortize a leasehold improvement over a term that includes assumption of a lease renewal if the renewal is reasonably assured. Leasehold improvements acquired in a business combination are amortized over the shorter of the useful life of the assets or a term that includes required lease periods and renewals that are deemed to be reasonably assured at the date of acquisition. Leasehold improvements that are placed in service significantly after and are not contemplated at or near the beginning of the lease term are amortized over the shorter of the useful life of the assets or a term that includes required lease periods and renewals that are deemed to be reasonably assured at the date the leasehold improvements are purchased. Leasehold improvements made by us and funded by landlord incentives or allowances under an operating lease are recorded as deferred rent and amortized as reductions to lease expense over the lease term. |
Income Taxes | Income Taxes GCI, Inc., as a wholly owned subsidiary and member of the GCI controlled group of corporations, files its income tax returns as part of the consolidated group of corporations under GCI. Accordingly, all discussions regarding income taxes reflect the consolidated group's activity. Our income tax expense and deferred income tax assets and liabilities are presented herein using the separate-entity method. Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for their future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable earnings in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recognized if it is more likely than not that some portion or the entire deferred tax asset will not be realized. |
Share-based Payment Arrangements | Share-based Payment Arrangements Compensation expense is recognized in the financial statements for share-based awards based on the grant date fair value of those awards. Share-based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis, which is generally commensurate with the vesting term. We are required to report the benefits associated with tax deductions in excess of recognized compensation cost as a financing cash flow rather than as an operating cash flow. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP 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. By their nature, these judgments are subject to an inherent degree of uncertainty. These judgments are based on our historical experience, terms of existing contracts, observance of trends, and other factors, as appropriate. Additionally, changes in accounting estimates are reasonably likely to occur from period to period. These factors could have a material impact on our financial statements. Significant estimates include, but are not limited to, the following: revenue recognition, impairment and useful lives of intangible assets, and the valuation allowance for net operating loss deferred tax assets. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and accounts receivable. Excess cash is invested in high quality short-term liquid money instruments. At December 31, 2016 , and 2015 , substantially all of our cash and cash equivalents were invested in short-term liquid money instruments and the balances were in excess of Federal Deposit Insurance Corporation insured limits. Our customers are located primarily throughout Alaska. Because of this geographic concentration, our growth and operations depend upon economic conditions in Alaska. |
Software Capitalization Policy | Software Capitalization Policy Internally used software, whether purchased or developed, is capitalized and amortized using the straight-line method over an estimated useful life of three to five years. We capitalize certain costs associated with internally developed software such as payroll costs of employees devoting time to the projects and external direct costs for materials and services. Costs associated with internally developed software to be used internally are expensed until the point the project has reached the development stage. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed in the period in which they are incurred. The capitalization of software requires judgment in determining when a project has reached the development stage. |
Guarantees | Guarantees Certain of our customers have guaranteed levels of service. If an interruption in service occurs, we do not recognize revenue for any portion of the monthly service fee that will be refunded to the customer or not billed to the customer due to these service level agreements. Additionally, we have provided certain guarantees to U.S. Bancorp Community Development Corporation (“US Bancorp”), our tax credit investor in our four VIEs. We have guaranteed the delivery of $56.0 million of New Markets Tax Credits (“NMTC”) to US Bancorp, as well as certain loan and management fee payments between our subsidiaries and the VIEs, for which we are the primary beneficiary. In the event that the tax credits are not delivered or certain payments not made, we are obligated to provide prompt and complete payment of these obligations. See Note 13 of this Form 10-K for more information about our NMTC transactions. EIP Trade-in Right We offer a device trade-in program, "Upgrade Now", which provides eligible customers a specified-price trade-in right to upgrade their device. Participating customers must have purchased a financed device using an equipment installment plan from us and have a qualifying monthly wireless service plan. Upon qualifying for an Upgrade Now device trade-in, the customer's remaining EIP balance is settled provided they trade in their eligible used device in good working condition and purchase a new device from us on a new EIP. For customers who enroll in Upgrade Now, we defer the portion of equipment sales revenue which represents the estimated value of the trade-in right guarantee. The estimated value of the guarantees are based on various economic and customer behavioral assumptions, including the customer's estimated remaining EIP balance at trade-in, the expected fair value of the used handset at trade-in and the probability and timing of a trade-in. We assess facts and circumstances at each reporting date to determine if we need to adjust the guarantee liability. The recognition of subsequent adjustments to the guarantee liability as a result of these assessments are recorded as adjustments to revenue. When customers upgrade their devices, the difference between the trade-in credit to the customer and the fair value of the returned devices is recorded against the guarantee liabilities. Guarantee liabilities are included in Accrued Liabilities in our Consolidated Balance Sheets. |
Classification of Taxes Collected from Customers | Classification of Taxes Collected from Customers We report sales, use, excise, and value added taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction between us and a customer on a net basis in our Consolidated Statements of Operations. |
Reclassifications | Reclassifications Reclassifications have been made to the prior years' consolidated financial statements to conform to classifications used in the current year. |
Business and Summary of Signi24
Business and Summary of Significant Accounting Principles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Consideration Transferred to Acquire Assets and Interest | The following table summarizes the allocation of total consideration transferred to ACS between the AWN NCI Acquisition and the Acquired ACS Assets excluding working capital adjustments (amounts in thousands): Total consideration transferred to ACS $ 304,838 Allocation of consideration between wireless assets and non-controlling interest acquired: AWN non-controlling interest $ 303,831 Property and equipment 746 Other intangible assets 261 Total consideration $ 304,838 |
Changes in Noncontrolling Interest | The impact of the AWN NCI Acquisition is summarized in the following table (amounts in thousands): Reduction of non-controlling interest $ 268,364 Increase in deferred tax assets 9,583 Additional paid-in capital 25,884 Fair value of consideration paid for acquisition of equity interest $ 303,831 |
Schedule of Property Plant and Equipment Useful Life | Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable, in the following ranges: Asset Category Asset Lives Telephony transmission equipment and distribution facilities 5-20 years Fiber optic cable systems 15-25 years Cable transmission equipment and distribution facilities 5-30 years Support equipment and systems 3-20 years Transportation equipment 5-13 years Property and equipment under capital leases 12-20 years Buildings 25 years Customer premise equipment 2-20 years Studio equipment 10-15 years |
Schedule of Asset Retirement Obligations | Following is a reconciliation of the beginning and ending aggregate carrying amounts of our liability for asset retirement obligations (amounts in thousands): Balance at December 31, 2014 $ 31,940 Liability incurred 2,048 Accretion expense 1,121 Liability settled (49 ) Balance at December 31, 2015 35,060 Liability incurred 1,580 Revisions in estimated cash flows, including adjustment from tower transaction (Note 2) 3,368 Accretion expense 1,229 Liability settled (82 ) Balance at December 31, 2016 $ 41,155 |
Excise and Sales Taxes | The following are certain surcharges reported on a gross basis in our Consolidated Statements of Operations (amounts in thousands): Years Ended December 31, 2016 2015 2014 Surcharges reported gross $ 3,849 5,058 4,252 |
Tower Sale and Leaseback (Table
Tower Sale and Leaseback (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tower Sale and Leaseback [Abstract] | |
Schedule of Sale Leaseback Transactions | The following table summarizes the impacts to the Consolidated Balance Sheets (amounts in thousands): December 31, 2016 Property and equipment (1) $ 18,792 Tower obligation (2) $ 87,653 (1) Property conveyed to Vertical Bridge as part of the Tower Transaction, but remains on our Consolidated Balance Sheets. (2) Excluding current portion and net of deferred transaction costs. |
Schedule of Future Minimum Lease Payments for Tower Obligation | Future minimum payments related to the Tower Obligation, including expected renewals and excluding deferred transaction costs, are summarized below (amounts in thousands): Years ending December 31, Total 2017 $ 6,996 2018 7,136 2019 7,279 2020 7,425 2021 7,573 2022 and thereafter 150,117 Total minimum payments 186,526 Less amount representing interest 96,722 Tower obligation $ 89,804 A summary of future minimum lease payments follows (amounts in thousands): Years ending December 31: Operating Capital 2017 $ 46,249 13,433 2018 35,822 13,440 2019 27,525 13,450 2020 22,047 13,459 2021 16,797 12,044 2022 and thereafter 37,063 7,705 Total minimum lease payments $ 185,503 73,531 Less amount representing interest 13,884 Less current maturity of obligations under capital leases 9,331 Long-term obligations under capital leases, excluding current maturity $ 50,316 |
Consolidated Statements of Ca26
Consolidated Statements of Cash Flows Supplemental Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Operating Capital | Changes in operating assets and liabilities consist of (amounts in thousands): Year ended December 31, 2016 2015 2014 (Increase) decrease in accounts receivable, net $ (8,045 ) (4,230 ) 15,357 Increase in prepaid expenses (6,180 ) (632 ) (4,454 ) (Increase) decrease in inventories (623 ) 5,710 (6,631 ) (Increase) decrease in other current assets (38 ) 24 88 Increase in other assets (11,607 ) (11,491 ) (878 ) Decrease in accounts payable (135 ) (5,579 ) (4,648 ) Increase in deferred revenues 2,446 1,743 1,728 Increase (decrease) in accrued payroll and payroll related obligations (979 ) (1,469 ) 2,997 Increase (decrease) in accrued liabilities (8,031 ) 8,192 (242 ) Increase (decrease) in accrued interest 271 1,869 (434 ) Decrease in subscriber deposits (325 ) (448 ) (114 ) Increase (decrease) in long-term deferred revenue 18,649 (8,561 ) (4,163 ) Increase (decrease) in components of other long-term liabilities (230 ) 1,305 1,714 Total change in operating assets and liabilities $ (14,827 ) (13,567 ) 320 |
Cash Payments for Interest | The following items are for the years ended December 31, 2016 , 2015 and 2014 (amounts in thousands): Net cash paid or received: 2016 2015 2014 Interest paid, net of amounts capitalized $ 78,921 76,696 74,618 |
Schedule of Other Significant Noncash Transactions | The following items are non-cash investing and financing activities for the years ended December 31, 2016 , 2015 and 2014 (amounts in thousands): 2016 2015 2014 Non-cash additions for purchases of property and equipment $ 36,854 26,799 42,958 Non-cash consideration for KKCC assets $ 13,993 — — Asset retirement obligation additions to property and equipment $ 4,948 2,048 4,268 Non-cash consideration for Wireless Acquisition $ — 23,326 — Net capital lease obligation $ — — 9,386 Distribution to non-controlling interest $ — — 4,167 Deferred compensation distribution denominated in shares $ — — 617 |
Receivables and Allowance for27
Receivables and Allowance for Doubtful Receivables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Receivables by Type | Receivables consist of the following at December 31, 2016 and 2015 (amounts in thousands): 2016 2015 Trade $ 218,491 205,645 Other 1,303 2,739 Total receivables $ 219,794 208,384 |
Changes in the Allowance for Doubtful Receivables | Changes in the allowance for doubtful receivables during the years ended December 31, 2016 , 2015 and 2014 are summarized below (amounts in thousands): Additions Deductions Description Balance at beginning of year Charged to costs and expenses Charged to other accounts Write-offs net of recoveries Balance at end of year December 31, 2016 $ 3,630 8,516 — 7,739 4,407 December 31, 2015 $ 4,542 6,359 — 7,271 3,630 December 31, 2014 $ 2,346 3,994 — 1,798 4,542 |
Net Property and Equipment (Tab
Net Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Net Property and Equipment in Service | Net property and equipment consists of the following at December 31, 2016 and 2015 (amounts in thousands): 2016 2015 Land and buildings $ 114,966 108,145 Telephony transmission equipment and distribution facilities 1,271,425 1,215,796 Cable transmission equipment and distribution facilities 231,539 218,259 Studio equipment 15,456 15,171 Support equipment and systems 290,209 251,302 Transportation equipment 23,674 17,398 Customer premise equipment 158,513 155,971 Fiber optic cable systems 351,460 309,217 Construction in progress 157,633 93,271 2,614,875 2,384,530 Less accumulated depreciation 1,385,620 1,231,457 Less accumulated amortization on property and equipment under capital leases 67,337 58,692 Net property and equipment $ 1,161,918 1,094,381 Gross property and equipment under capital leases $ 112,495 112,495 |
Schedule of Consideration Transferred to Acquire Assets and Liabilities | The following table summarizes the allocation of total consideration (amounts in thousands): Allocation of consideration to assets acquired and liabilities assumed: Property and equipment $ 49,794 Deferred taxes (12,211 ) Deferred revenue (3,815 ) Total consideration $ 33,768 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization | Other Intangible Assets subject to amortization include the following at December 31, 2016 and 2015 (amounts in thousands): 2016 2015 Software license fees $ 80,839 63,760 Rights to use 45,114 44,937 Customer relationships 1,530 1,530 Right-of-way 784 784 128,267 111,011 Less accumulated amortization 53,823 41,721 Net other intangible assets $ 74,444 69,290 |
Changes in Goodwill and Other Intangible Assets | Changes in Goodwill and Other Intangible Assets are as follows (amounts in thousands): Goodwill Other Intangible Assets Balance at December 31, 2014 $ 229,560 66,015 Goodwill addition from acquisitions - Wireline Segment 9,703 — Asset additions — 15,023 Software impairment — (1,306 ) Amortization expense — (10,442 ) Balance at December 31, 2015 239,263 69,290 Asset additions — 17,601 Amortization expense — (12,447 ) Balance at December 31, 2016 $ 239,263 74,444 |
Schedule of Amortization Expense | Amortization expense for definite-life intangible assets for the years ended December 31, 2016 , 2015 and 2014 follow (amounts in thousands): Years Ended December 31, 2016 2015 2014 Amortization expense $ 12,447 10,442 9,715 |
Amortization Expense for Definite-Life Intangible Assets | Amortization expense for definite-life intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in thousands): Years Ending December 31, 2017 $ 11,213 2018 $ 9,191 2019 $ 6,686 2020 $ 4,904 2021 $ 3,150 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following (amounts in thousands): December 31, Issue Date Interest Rate Principal Payments Maturity Date 2016 2015 Senior Credit Facility - Term Loan B November 17, 2016 LIBOR plus 3.00% 0.25% of the original principal due quarterly February 2, 2022 1 $ 245,187 272,937 Senior Credit Facility - Term Loan A November 17, 2016 LIBOR plus applicable margin 2 Due at maturity November 17, 2021 1 215,000 240,000 Senior Credit Facility - Revolver November 17, 2016 LIBOR plus applicable margin 2 Due at maturity November 17, 2021 1 55,000 — 2025 Notes April 1, 2015 6.875% Due at maturity April 15, 2025 3 450,000 450,000 2021 Notes May 20, 2011 6.75% Due at maturity June 1, 2021 4 325,000 325,000 Wells Fargo note June 30, 2014 LIBOR plus 2.25% Monthly installments July 15, 2029 8,596 9,176 Total Debt 1,298,783 1,297,113 Less unamortized discount 3,518 3,817 Less unamortized deferred loan fees 15,133 15,368 Less current portion of long-term debt 3,326 3,342 Long-term debt, net $ 1,276,806 1,274,586 1 The Senior Credit Facility will mature on December 3, 2020 if our 2021 Notes are not refinanced prior to such date. 2 Applicable margin is based on the company’s leverage ratio and ranges from 2.00% to 3.00%. Our Senior Credit Facility Total Leverage Ratio (as defined) may not exceed 5.95 to one; the Senior Leverage Ratio (as defined) may not exceed 3.00 to one; and our Interest Coverage Ratio (as defined) must not be less than 2.50 to one at any time. 3 The notes are redeemable at our option, in whole or in part, at a redemption price defined in the 2025 Notes agreement, and accrued and unpaid interest (if any) to the date of redemption. 4 The notes are redeemable at our option, in whole or in part, at a redemption price defined in the 2021 Notes agreement, and accrued and unpaid interest (if any) to the date of redemption. |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt as of December 31, 2016 are as follows (amounts in thousands): Years ending December 31, 2017 $ 3,326 2018 3,344 2019 3,362 2020 3,380 2021 598,399 2022 and thereafter 686,972 Total debt 1,298,783 Less unamortized discount 3,518 Less unamortized deferred loan fees 15,133 Less current portion of long-term debt 3,326 Long-term debt, net $ 1,276,806 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consists of the following (amounts in thousands): Years Ended December 31, 2016 2015 2014 Deferred tax expense (benefit): Federal taxes $ 6,058 290 9,081 State taxes 1,022 (209 ) 948 $ 7,080 81 10,029 |
Schedule of Effective Income Tax Rate Reconciliation | Total income tax expense differed from the “expected” income tax expense (benefit) determined by applying the statutory federal income tax rate of 35% as follows (amounts in thousands): Years Ended December 31, 2016 2015 2014 “Expected” statutory tax expense (benefit) $ 1,891 (3,482 ) 24,246 Nondeductible officer compensation 1,424 1,906 1,351 Nondeductible lobbying expenses 1,192 442 425 Nondeductible entertainment expenses 1,029 1,059 1,125 State income tax expense (benefit), net of federal expense (benefit) 1,022 (209 ) 948 Impact of non-controlling interest attributable to non-tax paying entity — (220 ) (18,255 ) Other, net 522 585 189 $ 7,080 $ 81 $ 10,029 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities at December 31, 2016 and 2015 are summarized below (amounts in thousands): 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 109,577 139,238 Deferred revenue for financial reporting purposes 59,993 41,151 Asset retirement obligations in excess of amounts recognized for tax purposes 16,808 14,338 Compensated absences accrued for financial reporting purposes 3,505 3,339 Share-based compensation expense for financial reporting purposes in excess of amounts recognized for tax purposes 3,393 2,773 Accounts receivable, principally due to allowance for doubtful receivables 1,965 1,912 Alternative minimum tax credits 1,735 1,735 Workers compensation and self-insurance health reserves, principally due to accrual for financial reporting purposes 1,705 1,795 Deferred compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes 1,687 1,603 Other 9,371 11,216 Total deferred tax assets $ 209,739 219,100 Deferred tax liabilities: Plant and equipment, principally due to differences in depreciation $ 245,118 246,172 Intangible assets 106,061 79,255 Other 345 1,746 Total deferred tax liabilities 351,524 327,173 Net deferred tax liabilities $ 141,785 108,073 |
Summary of Operating Loss Carryforwards | Our tax net operating loss carryforwards are summarized below by year of expiration (amounts in thousands): Years ending December 31, Federal State 2022 6,178 7,474 2023 3,968 3,903 2024 722 — 2025 737 — 2026 150 — 2027 1,010 — 2028 39,879 39,715 2029 48,370 47,558 2031 110,933 109,376 2033 5,031 4,927 2034 39,133 37,866 2035 11,885 11,290 Total tax net operating loss carryforwards $ 267,996 262,109 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets Measured on Recurring Basis | Assets measured at fair value on a recurring basis as of December 31, 2016 and 2015 are as follows (amounts in thousands): December 31, 2016 Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Deferred compensation plan assets (mutual funds) $ 1,477 — — 1,477 December 31, 2015 Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Deferred compensation plan assets (mutual funds) $ 1,728 — — 1,728 (1) Quoted prices in active markets for identical assets (2) Observable inputs other than quoted prices in active markets for identical assets (3) Inputs that are generally unobservable and not corroborated by market data |
Fair Value, by Balance Sheet Grouping | The carrying amounts and approximate fair values of our current and long-term debt, excluding capital leases at December 31, 2016 and 2015 are as follows (amounts in thousands): December 31, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Current and long-term debt $ 1,280,133 1,317,222 1,293,296 1,314,864 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Restricted Stock Activity | A summary of nonvested restricted stock award activity under the Stock Option Plan for the year ended December 31, 2016 , follows (share amounts in thousands): Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2016 1,495 $ 11.08 Granted 790 $ 17.87 Vested (817 ) $ 11.65 Forfeited (3 ) $ 16.09 Nonvested at December 31, 2016 1,465 $ 14.41 |
Industry Segments Data (Tables)
Industry Segments Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summarized financial information for our reportable segments for the years ended December 31, 2016 , 2015 and 2014 follows (amounts in thousands): Wireless Wireline Total Reportable Segments 2016 Revenues Wholesale $ 208,109 — 208,109 Consumer — 340,460 340,460 Business services — 385,243 385,243 Total 208,109 725,703 933,812 Cost of Goods Sold 62,487 240,091 302,578 Contribution 145,622 485,612 631,234 Less SG&A (16,439 ) (341,917 ) (358,356 ) Plus share-based compensation expense — 11,043 11,043 Plus imputed interest on financed devices — 2,557 2,557 Plus accretion expense 252 977 1,229 Other — 337 337 Adjusted EBITDA $ 129,435 158,609 288,044 Capital expenditures $ 34,555 159,923 194,478 Goodwill $ 164,312 74,951 239,263 Total assets $ 601,796 1,464,143 2,065,939 Wireless Wireline Total Reportable Segments 2015 Revenues Wholesale $ 267,676 — 267,676 Consumer — 351,196 351,196 Business services — 359,662 359,662 Total 267,676 710,858 978,534 Cost of Good Sold 70,899 251,439 322,338 Contribution 196,777 459,419 656,196 Less SG&A (18,137 ) (320,242 ) (338,379 ) Plus share-based compensation expense — 10,902 10,902 Plus imputed interest on financed devices — 751 751 Plus accretion expense 559 562 1,121 Other expense — (240 ) (240 ) Adjusted EBITDA $ 179,199 151,152 330,351 Capital expenditures $ 47,892 128,343 176,235 Goodwill $ 164,312 74,951 239,263 Total assets $ 594,250 1,372,690 1,966,940 2014 Revenues Wholesale $ 269,977 — 269,977 Consumer — 288,014 288,014 Business Services — 352,207 352,207 Total 269,977 640,221 910,198 Cost of Good Sold 90,920 211,784 302,704 Contribution 179,057 428,437 607,494 Less SG&A (21,631 ) (272,016 ) (293,647 ) Plus share-based compensation expense — 8,392 8,392 Plus accretion expense 733 516 1,249 Other expense — (372 ) (372 ) Adjusted EBITDA $ 158,159 164,957 323,116 Capital expenditures $ 30,243 145,866 176,109 Goodwill $ 164,312 65,248 229,560 Total assets $ 625,417 1,367,344 1,992,761 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of consolidated income (loss) before income taxes to reportable segment Adjusted EBITDA follows (amounts in thousands): Years Ended December 31, 2016 2015 2014 Consolidated income (loss) before income taxes $ 5,404 (9,951 ) 69,273 Plus other expense, net 73,699 116,162 74,289 Consolidated operating income 79,103 106,211 143,562 Plus depreciation and amortization expense 193,775 181,767 170,285 Plus share-based compensation expense 11,043 10,902 8,392 Plus imputed interest on financed devices 2,557 751 — Plus accretion expense 1,229 1,121 1,249 Plus software impairment charge — 29,839 — Other 337 (240 ) (372 ) Reportable segment Adjusted EBITDA $ 288,044 330,351 323,116 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum payments related to the Tower Obligation, including expected renewals and excluding deferred transaction costs, are summarized below (amounts in thousands): Years ending December 31, Total 2017 $ 6,996 2018 7,136 2019 7,279 2020 7,425 2021 7,573 2022 and thereafter 150,117 Total minimum payments 186,526 Less amount representing interest 96,722 Tower obligation $ 89,804 A summary of future minimum lease payments follows (amounts in thousands): Years ending December 31: Operating Capital 2017 $ 46,249 13,433 2018 35,822 13,440 2019 27,525 13,450 2020 22,047 13,459 2021 16,797 12,044 2022 and thereafter 37,063 7,705 Total minimum lease payments $ 185,503 73,531 Less amount representing interest 13,884 Less current maturity of obligations under capital leases 9,331 Long-term obligations under capital leases, excluding current maturity $ 50,316 |
Selected Quarterly Financial 36
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2016 and 2015 (amounts in thousands): First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Total revenues $ 231,098 233,766 236,655 232,293 Operating income $ 20,019 19,531 26,368 13,185 Net income (loss) $ 326 (422 ) (973 ) (607 ) Net income (loss) attributable to GCI, Inc. $ 443 (305 ) (857 ) (488 ) 2015 Total revenues $ 231,089 247,528 258,573 241,344 Operating income $ 816 39,257 45,549 20,589 Net income (loss) $ (17,721 ) (14,701 ) 19,802 2,588 Net income (loss) attributable to GCI, Inc. $ (18,246 ) (14,622 ) 19,918 2,759 |
Business and Summary of Signi37
Business and Summary of Significant Accounting Principles (Narratives) (Details) | 12 Months Ended | ||||
Dec. 31, 2016USD ($)paymententity | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 01, 2016USD ($) | Jul. 22, 2013 | |
Business | |||||
Year founded | 1,997 | ||||
Principles of Consolidation [Abstract] | |||||
Percentage of voting interests acquired | 33.30% | ||||
Percentage of voting interests acquired from noncontrolling interest | 66.60% | ||||
Number of entities | entity | 4 | ||||
Accounts Receivable and Allowance for Doubtful Receivables | |||||
Past due period | 120 days | ||||
Number of installment plan payments | payment | 12 | ||||
Intangible Assets | |||||
Finite-lived intangible asset, useful life | 13 years 4 months 3 days | ||||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 | ||
Impairment of long-lived assets | 0 | 0 | |||
Investments | |||||
Impairment of equity method investment | 0 | 12,593,000 | 0 | ||
Impairment of cost-method investments | 0 | 0 | |||
Asset Retirement Obligation | |||||
Additional capitalized costs | 4,900,000 | 2,000,000 | |||
Advertising Expense | |||||
Advertising expense | 7,000,000 | 5,700,000 | 5,700,000 | ||
Interest Expense | |||||
Interest costs capitalized | 3,700,000 | $ 3,000,000 | $ 3,600,000 | ||
Guarantees | |||||
Guarantor liabilities | $ 56,000,000 | ||||
Minimum | Other Intangible Assets | |||||
Intangible Assets | |||||
Finite-lived intangible asset, useful life | 2 years | ||||
Maximum | |||||
Accounts Receivable and Allowance for Doubtful Receivables | |||||
Equipment Installment Plan Payment term | 24 months | ||||
Maximum | Other Intangible Assets | |||||
Intangible Assets | |||||
Finite-lived intangible asset, useful life | 20 years | ||||
Accounting Standards Update 2015-03 | |||||
Accounting Pronouncements | |||||
Debt issuance costs, noncurrent, net | $ 15,400,000 |
Business and Summary of Signi38
Business and Summary of Significant Accounting Principles (Wireless Acquisition) (Details) - USD ($) $ in Thousands | Feb. 02, 2015 | Nov. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Noncontrolling Interest [Line Items] | |||||
Payments to acquire assets and interest | $ 293,200 | ||||
Impairment of intangible assets | $ 1,306 | ||||
Total consideration transferred to ACS | 304,838 | ||||
Non-controlling interest acquisitions | 303,831 | ||||
Property and equipment | 746 | $ 49,794 | $ 194,478 | 176,235 | $ 176,109 |
Other intangible assets | 261 | ||||
Non-controlling interest acquisition | 14,445 | 281,803 | |||
Increase in deferred tax assets | 9,583 | ||||
Non-controlling Interests | |||||
Noncontrolling Interest [Line Items] | |||||
Non-controlling interest acquisition | 268,364 | 271,521 | |||
Paid-in Capital | |||||
Noncontrolling Interest [Line Items] | |||||
Non-controlling interest acquisition | 25,884 | 14,445 | 10,282 | ||
Other Income (Expense) | |||||
Noncontrolling Interest [Line Items] | |||||
Gain from adjustment to fair value | $ 3,100 | ||||
Other Income (Expense) | Rights to Receive Future Capacity | |||||
Noncontrolling Interest [Line Items] | |||||
Gain from adjustment to fair value | $ 1,200 | ||||
Other Income (Expense) | Rights to Use Capacity | |||||
Noncontrolling Interest [Line Items] | |||||
Impairment of intangible assets | $ 3,800 |
Business and Summary of Signi39
Business and Summary of Significant Accounting Principles (Business Acquisition) (Details) - Series of Individually Immaterial Business Acquisitions $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)entity | |
Business Acquisition [Line Items] | |
Number of businesses acquired | entity | 3 |
Consideration transferred | $ | $ 12.7 |
Business and Summary of Signi40
Business and Summary of Significant Accounting Principles (Depreciation) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Telephony transmission equipment and distribution facilities | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Telephony transmission equipment and distribution facilities | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 20 years |
Fiber optic cable systems | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 15 years |
Fiber optic cable systems | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 25 years |
Cable transmission equipment and distribution facilities | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Cable transmission equipment and distribution facilities | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 30 years |
Support equipment and systems | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Support equipment and systems | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 20 years |
Transportation equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Transportation equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 13 years |
Property and equipment under capital leases | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 12 years |
Property and equipment under capital leases | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 20 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 25 years |
Customer premise equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 2 years |
Customer premise equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 20 years |
Studio equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 10 years |
Studio equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 15 years |
Business and Summary of Signi41
Business and Summary of Significant Accounting Principles (Asset Retirement Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Balance, beginning | $ 35,060 | $ 31,940 | |
Liability incurred | 1,580 | 2,048 | |
Revisions in estimated cash flows, including adjustment from tower transaction (Note 2) | 3,368 | ||
Accretion expense | 1,229 | 1,121 | $ 1,249 |
Liability settled | (82) | (49) | |
Balance, ending | $ 41,155 | $ 35,060 | $ 31,940 |
Business and Summary of Signi42
Business and Summary of Significant Accounting Principles (Revenue Recognition) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Public Utilities, General Disclosures [Line Items] | |||||||||||
Revenues | $ 232,293 | $ 236,655 | $ 233,766 | $ 231,098 | $ 241,344 | $ 258,573 | $ 247,528 | $ 231,089 | $ 933,812 | $ 978,534 | $ 910,198 |
Receivables | 219,794 | $ 208,384 | $ 219,794 | 208,384 | |||||||
Urban High Cost Support Program | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Percentage phase down, decrease in support payments, maximum | 60.00% | ||||||||||
High Cost Support Program | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Revenues | $ 64,100 | $ 66,200 | $ 66,700 | ||||||||
Receivables | $ 43,900 | $ 43,900 |
Business and Summary of Signi43
Business and Summary of Significant Accounting Principles (Surcharges Reported Gross) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Surcharges reported gross | $ 3,849 | $ 5,058 | $ 4,252 |
Tower Sale and Leaseback (Narra
Tower Sale and Leaseback (Narratives) (Details) - Tower Sale $ in Millions | 1 Months Ended |
Aug. 31, 2016USD ($)renewal_optioncell_site | |
Sale Leaseback Transaction [Line Items] | |
Number of cell sites sold | cell_site | 276 |
Net proceeds from sale of cell sites | $ 90.8 |
Number of renewal options | renewal_option | 8 |
Renewal period (in years) | 5 years |
Annual increase in lease payments, percentage | 2.00% |
Decrease in asset retirement obligation | $ (3.4) |
Interest rate on the Tower Obligation | 7.10% |
Minimum | |
Sale Leaseback Transaction [Line Items] | |
Lease term (in years) | 10 years |
Maximum | |
Sale Leaseback Transaction [Line Items] | |
Lease term (in years) | 50 years |
Tower Sale and Leaseback (Balan
Tower Sale and Leaseback (Balance Sheet Impacts) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Tower Sale and Leaseback [Abstract] | ||
Property and equipment | $ 18,792 | |
Tower obligation | $ 87,653 | $ 0 |
Tower Sale and Leaseback (Futur
Tower Sale and Leaseback (Future Minimum Payments) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Tower Sale and Leaseback [Abstract] | |
2,017 | $ 6,996 |
2,018 | 7,136 |
2,019 | 7,279 |
2,020 | 7,425 |
2,021 | 7,573 |
2022 and thereafter | 150,117 |
Total minimum payments | 186,526 |
Less amount representing interest | 96,722 |
Tower obligation | $ 89,804 |
Consolidated Statements of Ca47
Consolidated Statements of Cash Flows Supplemental Disclosures (Changes in Operating Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | |||
(Increase) decrease in accounts receivable, net | $ (8,045) | $ (4,230) | $ 15,357 |
Increase in prepaid expenses | (6,180) | (632) | (4,454) |
(Increase) decrease in inventories | (623) | 5,710 | (6,631) |
(Increase) decrease in other current assets | (38) | 24 | 88 |
Increase in other assets | (11,607) | (11,491) | (878) |
Decrease in accounts payable | (135) | (5,579) | (4,648) |
Increase in deferred revenues | 2,446 | 1,743 | 1,728 |
Increase (decrease) in accrued payroll and payroll related obligations | (979) | (1,469) | 2,997 |
Increase (decrease) in accrued liabilities | (8,031) | 8,192 | (242) |
Increase (decrease) in accrued interest | 271 | 1,869 | (434) |
Decrease in subscriber deposits | (325) | (448) | (114) |
Increase (decrease) in long-term deferred revenue | 18,649 | (8,561) | (4,163) |
Increase (decrease) in components of other long-term liabilities | (230) | 1,305 | 1,714 |
Total change in operating assets and liabilities | $ (14,827) | $ (13,567) | $ 320 |
Consolidated Statements of Ca48
Consolidated Statements of Cash Flows Supplemental Disclosures (Net Cash Paid or Received) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest paid, net of amounts capitalized | $ 78,921 | $ 76,696 | $ 74,618 |
Consolidated Statements of Ca49
Consolidated Statements of Cash Flows Supplemental Disclosures ( Non-cash Investing and Financing Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Noncash or Part Noncash Acquisitions [Line Items] | |||
Non-cash additions for purchases of property and equipment | $ 36,854 | $ 26,799 | $ 42,958 |
Non-cash consideration for KKCC assets | 14,000 | ||
Asset retirement obligation additions to property and equipment | 4,948 | 2,048 | 4,268 |
Net capital lease obligation | 0 | 0 | 9,386 |
Distribution to non-controlling interest | 0 | 0 | 4,167 |
Deferred compensation distribution denominated in shares | 0 | 0 | 617 |
KKCC Assets | |||
Noncash or Part Noncash Acquisitions [Line Items] | |||
Non-cash consideration for KKCC assets | 13,993 | 0 | 0 |
Wireless Assets | |||
Noncash or Part Noncash Acquisitions [Line Items] | |||
Non-cash consideration for Wireless Acquisition | $ 0 | $ 23,326 | $ 0 |
Receivables and Allowance for50
Receivables and Allowance for Doubtful Receivables (Narrative) (Details) - USF Program - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenue support from regulatory agency, percentage | 24.00% | 19.00% | 19.00% |
Receivables net current | $ 92 | $ 98.1 |
Receivables and Allowance for51
Receivables and Allowance for Doubtful Receivables (Receivables by Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 219,794 | $ 208,384 |
Trade Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | 218,491 | 205,645 |
Other Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables | $ 1,303 | $ 2,739 |
Receivables and Allowance for52
Receivables and Allowance for Doubtful Receivables (Allowance for Doubtful Receivables Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of year | $ 3,630 | $ 4,542 | $ 2,346 |
Charged to costs and expenses | 8,516 | 6,359 | 3,994 |
Charged to other accounts | 0 | 0 | 0 |
Write-offs net of recoveries | 7,739 | 7,271 | 1,798 |
Balance at end of year | $ 4,407 | $ 3,630 | $ 4,542 |
Net Property and Equipment (Nar
Net Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Cash payment | $ 19,700 | $ 0 | $ 0 |
Fair market value of indefeasible right-to-use capacity | 14,000 | ||
Other Income (Expense) | |||
Property, Plant and Equipment [Line Items] | |||
Gain from adjustment to fair value | $ 3,100 |
Net Property and Equipment (PPE
Net Property and Equipment (PPE by Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 2,614,875 | $ 2,384,530 |
Less accumulated depreciation | 1,385,620 | 1,231,457 |
Less accumulated amortization on property and equipment under capital leases | 67,337 | 58,692 |
Net property and equipment | 1,161,918 | 1,094,381 |
Gross property and equipment under capital leases | 112,495 | 112,495 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 114,966 | 108,145 |
Telephony transmission equipment and distribution facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,271,425 | 1,215,796 |
Cable transmission equipment and distribution facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 231,539 | 218,259 |
Studio equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 15,456 | 15,171 |
Support equipment and systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 290,209 | 251,302 |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 23,674 | 17,398 |
Customer premise equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 158,513 | 155,971 |
Fiber optic cable systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 351,460 | 309,217 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 157,633 | $ 93,271 |
Net Property and Equipment (Con
Net Property and Equipment (Consideration Transferred) (Details) - USD ($) $ in Thousands | Feb. 02, 2015 | Nov. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | |||||
Property and equipment | $ 746 | $ 49,794 | $ 194,478 | $ 176,235 | $ 176,109 |
Deferred taxes | (12,211) | $ (141,785) | $ (108,073) | ||
Deferred revenue | (3,815) | ||||
Total consideration | $ 33,768 |
Intangible Assets and Goodwil56
Intangible Assets and Goodwill (Narratives) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-lived intangible asset, useful life | 13 years 4 months 3 days |
Intangible Assets and Goodwil57
Intangible Assets and Goodwill (Finite Lived) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | $ 128,267 | $ 111,011 | |
Less accumulated amortization | 53,823 | 41,721 | |
Net other intangible assets | 74,444 | 69,290 | $ 66,015 |
Software License Fee | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 80,839 | 63,760 | |
Rights to Use | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 45,114 | 44,937 | |
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 1,530 | 1,530 | |
Right of Way | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | $ 784 | $ 784 |
Intangible Assets and Goodwil58
Intangible Assets and Goodwill (Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | |||
Goodwill beginning balance | $ 239,263 | $ 229,560 | |
Goodwill ending balance | 239,263 | 239,263 | $ 229,560 |
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning Balance | 69,290 | 66,015 | |
Asset additions | 17,601 | 15,023 | |
Software impairment | (1,306) | ||
Amortization expense | (12,447) | (10,442) | (9,715) |
Ending Balance | 74,444 | 69,290 | 66,015 |
Wireline | |||
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 74,951 | 65,248 | |
Goodwill acquired during period | 9,703 | ||
Goodwill ending balance | $ 74,951 | $ 74,951 | $ 65,248 |
Intangible Assets and Goodwil59
Intangible Assets and Goodwill (Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 12,447 | $ 10,442 | $ 9,715 |
Intangible Assets and Goodwil60
Intangible Assets and Goodwill (5 Year Future Amortization ) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,017 | $ 11,213 |
2,018 | 9,191 |
2,019 | 6,686 |
2,020 | 4,904 |
2,021 | $ 3,150 |
Long Term Debt (Schedule of Lon
Long Term Debt (Schedule of Long Term Debt) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,298,783 | $ 1,297,113 |
Less unamortized discount | 3,518 | 3,817 |
Less unamortized deferred loan fees | 15,133 | 15,368 |
Less current portion of long-term debt | 3,326 | 3,342 |
Long-term debt, net | $ 1,276,806 | 1,274,586 |
Minimum | ||
Debt Instrument [Line Items] | ||
Interest coverage ratio | 2.50 | |
Maximum | ||
Debt Instrument [Line Items] | ||
Total leverage ratio | 5.95 | |
Senior leverage ratio | 3 | |
Senior Notes | 2025 Notes | ||
Debt Instrument [Line Items] | ||
Stated percentage | 6.875% | |
Long-term debt, gross | $ 450,000 | 450,000 |
Senior Notes | 2021 Notes | ||
Debt Instrument [Line Items] | ||
Stated percentage | 6.75% | |
Long-term debt, gross | $ 325,000 | 325,000 |
Notes Payable to Banks | Wells Fargo Note | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 8,596 | 9,176 |
Term Loan B | Medium-term Notes | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Principal payments (as a percent) | 0.25% | |
Long-term debt, gross | $ 245,187 | 272,937 |
Term Loan A | Medium-term Notes | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 215,000 | 240,000 |
Revolving Credit Facility | Line of Credit | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 55,000 | $ 0 |
LIBOR | Notes Payable to Banks | Wells Fargo Note | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.25% | |
LIBOR | Term Loan B | Medium-term Notes | Senior Credit Facility | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.00% | |
LIBOR | Term Loan A | Medium-term Notes | Senior Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.00% | |
LIBOR | Term Loan A | Medium-term Notes | Senior Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.00% | |
LIBOR | Revolving Credit Facility | Line of Credit | Senior Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.00% | |
LIBOR | Revolving Credit Facility | Line of Credit | Senior Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.00% |
Long Term Debt (Narratives) (De
Long Term Debt (Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 5,451 | $ 13,979 | $ 84 |
Loss on extinguishment of debt | 640 | 27,700 | $ 0 |
Long-term debt, gross | 1,298,783 | 1,297,113 | |
Letters of credit outstanding | 21,000 | ||
Medium-term Notes | Senior Credit Facility | |||
Debt Instrument [Line Items] | |||
Loan fees and other expenses | 200 | ||
Debt issuance costs | 3,900 | ||
Loss on extinguishment of debt | 600 | ||
Line of Credit | Senior Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 55,000 | 0 | |
Maximum borrowing capacity | 200,000 | ||
Remaining borrowing capacity | 124,000 | ||
Senior Notes | 2025 Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 450,000 | 450,000 | |
Frequency of periodic payment | semi-annually | ||
Senior Notes | 2025 Notes | Maximum | |||
Debt Instrument [Line Items] | |||
Percentage of principal | 101.00% | ||
Senior Notes | 2025 Notes | Minimum | |||
Debt Instrument [Line Items] | |||
Percentage of principal | 100.00% | ||
Senior Notes | 2021 Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 325,000 | 325,000 | |
Frequency of periodic payment | Semi-annually | ||
Senior Notes | 2021 Notes | Maximum | |||
Debt Instrument [Line Items] | |||
Percentage of principal | 101.00% | ||
Senior Notes | 2021 Notes | Minimum | |||
Debt Instrument [Line Items] | |||
Percentage of principal | 100.00% | ||
Senior Notes | 2019 Notes | |||
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 27,700 |
Long Term Debt (Schedule of L63
Long Term Debt (Schedule of Long Term Debt Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
2,017 | $ 3,326 | |
2,018 | 3,344 | |
2,019 | 3,362 | |
2,020 | 3,380 | |
2,021 | 598,399 | |
2022 and thereafter | 686,972 | |
Total debt | 1,298,783 | $ 1,297,113 |
Less unamortized discount | 3,518 | 3,817 |
Less unamortized deferred loan fees | 15,133 | 15,368 |
Less current portion of long-term debt | 3,326 | 3,342 |
Long-term debt, net | $ 1,276,806 | $ 1,274,586 |
Income Taxes (Narratives) (Deta
Income Taxes (Narratives) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax expense | $ 7,080,000 | $ 81,000 | $ 10,029,000 |
Federal statutory income tax rate | 35.00% | ||
Unrecognized tax benefits | $ 0 | 0 | 0 |
Income tax interest expense | 0 | 0 | 0 |
Income tax penalties expense | 0 | $ 0 | $ 0 |
Cumulative excess tax benefits, share based compensation expense, not recognize | 7,400,000 | ||
Alternative Minimum Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Alternative minimum tax credit carryforwards | 1,700,000 | ||
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 267,996,000 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax expense (benefit): | |||
Federal taxes | $ 6,058 | $ 290 | $ 9,081 |
State taxes | 1,022 | (209) | 948 |
Deferred tax expense (benefit) | $ 7,080 | $ 81 | $ 10,029 |
Income Taxes (Statutory Tax Rat
Income Taxes (Statutory Tax Rate Impact on Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
“Expected” statutory tax expense (benefit) | $ 1,891 | $ (3,482) | $ 24,246 |
Nondeductible officer compensation | 1,424 | 1,906 | 1,351 |
Nondeductible lobbying expenses | 1,192 | 442 | 425 |
Nondeductible entertainment expenses | (1,029) | (1,059) | (1,125) |
State income tax expense (benefit), net of federal expense (benefit) | 1,022 | (209) | 948 |
Impact of non-controlling interest attributable to non-tax paying entity | 0 | (220) | (18,255) |
Other, net | 522 | 585 | 189 |
Income Tax Expense (Benefit), Total | $ 7,080 | $ 81 | $ 10,029 |
Income Taxes (Tax Effects of Te
Income Taxes (Tax Effects of Temporary Differences) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 109,577 | $ 139,238 |
Deferred revenue for financial reporting purposes | 59,993 | 41,151 |
Asset retirement obligations in excess of amounts recognized for tax purposes | 16,808 | 14,338 |
Compensated absences accrued for financial reporting purposes | 3,505 | 3,339 |
Share-based compensation expense for financial reporting purposes in excess of amounts recognized for tax purposes | 3,393 | 2,773 |
Accounts receivable, principally due to allowance for doubtful receivables | 1,965 | 1,912 |
Alternative minimum tax credits | 1,735 | 1,735 |
Workers compensation and self-insurance health reserves, principally due to accrual for financial reporting purposes | 1,705 | 1,795 |
Deferred compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes | 1,687 | 1,603 |
Other | 9,371 | 11,216 |
Total deferred tax assets | 209,739 | 219,100 |
Deferred tax liabilities: | ||
Plant and equipment, principally due to differences in depreciation | 245,118 | 246,172 |
Intangible assets | 106,061 | 79,255 |
Other | 345 | 1,746 |
Total deferred tax liabilities | 351,524 | 327,173 |
Net deferred tax liabilities | $ 141,785 | $ 108,073 |
Income Taxes (Summary of Tax Ne
Income Taxes (Summary of Tax Net Operating Loss Carryforwards) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 267,996 |
State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 262,109 |
2022 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 6,178 |
2022 | State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 7,474 |
2023 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 3,968 |
2023 | State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 3,903 |
2024 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 722 |
2024 | State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
2025 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 737 |
2025 | State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
2026 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 150 |
2026 | State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
2027 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1,010 |
2027 | State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
2028 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 39,879 |
2028 | State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 39,715 |
2029 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 48,370 |
2029 | State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 47,558 |
2031 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 110,933 |
2031 | State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 109,376 |
2033 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,031 |
2033 | State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 4,927 |
2034 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 39,133 |
2034 | State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 37,866 |
2035 | Federal | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 11,885 |
2035 | State | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 11,290 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (mutual funds) | $ 1,477 | $ 1,728 |
Level 1 | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (mutual funds) | 1,477 | 1,728 |
Level 2 | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (mutual funds) | 0 | 0 |
Level 3 | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (mutual funds) | $ 0 | $ 0 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Fair Value of the Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current and long-term debt | $ 1,280,133 | $ 1,293,296 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current and long-term debt | $ 1,317,222 | $ 1,314,864 |
Senior Notes | 2021 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated percentage | 6.75% | |
Senior Notes | 2025 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated percentage | 6.875% |
Stockholder's Equity (Narrative
Stockholder's Equity (Narratives) (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 01, 1997 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Common Stock | ||||
Proceeds from Issuance Initial Public Offering | $ 206.6 | |||
Share-Based Compensation | ||||
Fair value assumptions, method used | The fair value of restricted stock awards is determined based on the number of shares granted and the quoted price of GCI's common stock. | |||
Share-based compensation expense | $ 11 | $ 10.9 | $ 8.4 | |
Unrecognized share-based compensation expense | 12.5 | |||
GCI 401(k) Plan | ||||
Matching contributions | $ 11 | $ 9.8 | $ 9.1 | |
Restricted Stock | ||||
Share-Based Compensation | ||||
Weighted average period for recognition of unvested shares | 2 years | |||
Maximum | Restricted Stock | ||||
Share-Based Compensation | ||||
Vesting period | 3 years | |||
Stock Option Plan | Restricted Stock | ||||
Share-Based Compensation | ||||
Granted (USD per share) | $ 17.87 | $ 15.06 | $ 10.04 | |
Fair value of awards vesting | $ 13.5 | $ 17 | $ 8.5 | |
Class A Common Stock | ||||
Common Stock | ||||
Common stock, shares issued | 100 | 100 | 100 | |
Common Stock, no par value | $ 0 | $ 0 | $ 0 | |
Parent Class A Common | Stock Option Plan | ||||
Share-Based Compensation | ||||
Number of shares authorized | 15,700,000 | |||
Number of shares available for grant | 1,500,000 |
Stockholder's Equity (Summary o
Stockholder's Equity (Summary of Nonvested Restricted Stock Award Activity) (Details) - Stock Option Plan - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | |||
Nonvested, Beginning (shares) | 1,495 | ||
Granted (shares) | 790 | ||
Vested (shares) | (817) | ||
Forfeited (shares) | (3) | ||
Nonvested, Ending (shares) | 1,465 | 1,495 | |
Weighted Average Grant Date Fair Value | |||
Nonvested, Beginning (USD per share) | $ 11.08 | ||
Granted (USD per share) | 17.87 | $ 15.06 | $ 10.04 |
Vested (USD per share) | 11.65 | ||
Forfeited (USD per share) | 16.09 | ||
Nonvested, Ending (USD per share) | $ 14.41 | $ 11.08 |
Industry Segments Data (Narrati
Industry Segments Data (Narratives) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Percentage of long-lived assets not in US | 82.00% | ||||||||||
Number of major customers | 0 | ||||||||||
Revenues | $ 232,293 | $ 236,655 | $ 233,766 | $ 231,098 | $ 241,344 | $ 258,573 | $ 247,528 | $ 231,089 | $ 933,812 | $ 978,534 | $ 910,198 |
Customer Concentration Risk | Sales Revenue, Net | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 130,800 | $ 108,300 | |||||||||
Concentration risk, percentage | 13.00% | 12.00% | |||||||||
Wireless | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equipment subsidy | 0 | $ 7,700 | $ 17,300 | ||||||||
Revenues | $ 208,109 | $ 267,676 | $ 269,977 |
Industry Segments Data (Reporta
Industry Segments Data (Reportable Segment) (Details) - USD ($) $ in Thousands | Feb. 02, 2015 | Nov. 30, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | $ 232,293 | $ 236,655 | $ 233,766 | $ 231,098 | $ 241,344 | $ 258,573 | $ 247,528 | $ 231,089 | $ 933,812 | $ 978,534 | $ 910,198 | ||
Cost of Goods Sold | 302,578 | 322,338 | 302,704 | ||||||||||
Contribution | 631,234 | 656,196 | 607,494 | ||||||||||
Less SG&A | (358,356) | (338,379) | (293,647) | ||||||||||
Plus share-based compensation expense | 11,043 | 10,902 | 8,392 | ||||||||||
Plus imputed interest on financed devices | 2,557 | 751 | 0 | ||||||||||
Plus accretion expense | 1,229 | 1,121 | 1,249 | ||||||||||
Other | 337 | (240) | (372) | ||||||||||
Adjusted EBITDA | 288,044 | 330,351 | 323,116 | ||||||||||
Capital expenditures | $ 746 | $ 49,794 | 194,478 | 176,235 | 176,109 | ||||||||
Goodwill | 239,263 | 239,263 | 239,263 | 239,263 | 229,560 | ||||||||
Total assets | 2,065,939 | 1,966,940 | 2,065,939 | 1,966,940 | 1,992,761 | ||||||||
Wholesale | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 208,109 | 267,676 | 269,977 | ||||||||||
Consumer | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 340,460 | 351,196 | 288,014 | ||||||||||
Business services | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 385,243 | 359,662 | 352,207 | ||||||||||
Wireless | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 208,109 | 267,676 | 269,977 | ||||||||||
Cost of Goods Sold | 62,487 | 70,899 | 90,920 | ||||||||||
Contribution | 145,622 | 196,777 | 179,057 | ||||||||||
Less SG&A | (16,439) | (18,137) | (21,631) | ||||||||||
Plus share-based compensation expense | 0 | 0 | 0 | ||||||||||
Plus imputed interest on financed devices | 0 | 0 | |||||||||||
Plus accretion expense | 252 | 559 | 733 | ||||||||||
Other | 0 | 0 | 0 | ||||||||||
Adjusted EBITDA | 129,435 | 179,199 | 158,159 | ||||||||||
Capital expenditures | 34,555 | 47,892 | 30,243 | ||||||||||
Goodwill | 164,312 | 164,312 | 164,312 | 164,312 | 164,312 | ||||||||
Total assets | 601,796 | 594,250 | 601,796 | 594,250 | 625,417 | ||||||||
Wireless | Wholesale | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 208,109 | 267,676 | 269,977 | ||||||||||
Wireless | Consumer | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||
Wireless | Business services | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||
Wireline | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 725,703 | 710,858 | 640,221 | ||||||||||
Cost of Goods Sold | 240,091 | 251,439 | 211,784 | ||||||||||
Contribution | 485,612 | 459,419 | 428,437 | ||||||||||
Less SG&A | (341,917) | (320,242) | (272,016) | ||||||||||
Plus share-based compensation expense | 11,043 | 10,902 | 8,392 | ||||||||||
Plus imputed interest on financed devices | 2,557 | 751 | |||||||||||
Plus accretion expense | 977 | 562 | 516 | ||||||||||
Other | 337 | (240) | (372) | ||||||||||
Adjusted EBITDA | 158,609 | 151,152 | 164,957 | ||||||||||
Capital expenditures | 159,923 | 128,343 | 145,866 | ||||||||||
Goodwill | 74,951 | 74,951 | 74,951 | 74,951 | 65,248 | ||||||||
Total assets | $ 1,464,143 | $ 1,372,690 | 1,464,143 | 1,372,690 | 1,367,344 | ||||||||
Wireline | Wholesale | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 0 | 0 | 0 | ||||||||||
Wireline | Consumer | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | 340,460 | 351,196 | 288,014 | ||||||||||
Wireline | Business services | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Revenues | $ 385,243 | $ 359,662 | $ 352,207 |
Industry Segments Data (Reconci
Industry Segments Data (Reconciliation of Reportable Segment Adjusted EBITDA) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | |||||||||||
Consolidated income (loss) before income taxes | $ 5,404 | $ (9,951) | $ 69,273 | ||||||||
Plus other expense, net | 73,699 | 116,162 | 74,289 | ||||||||
Consolidated operating income | $ 13,185 | $ 26,368 | $ 19,531 | $ 20,019 | $ 20,589 | $ 45,549 | $ 39,257 | $ 816 | 79,103 | 106,211 | 143,562 |
Plus depreciation and amortization expense | 193,775 | 181,767 | 170,285 | ||||||||
Plus share-based compensation expense | 11,043 | 10,902 | 8,392 | ||||||||
Plus imputed interest on financed devices | 2,557 | 751 | 0 | ||||||||
Plus accretion expense | 1,229 | 1,121 | 1,249 | ||||||||
Plus software impairment charge | 0 | 29,839 | 0 | ||||||||
Other | 337 | (240) | (372) | ||||||||
Reportable segment Adjusted EBITDA | $ 288,044 | $ 330,351 | $ 323,116 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Feb. 02, 2015 | Jan. 31, 2001 | Dec. 31, 2014 | Dec. 31, 2001 | Apr. 30, 2008 | Dec. 31, 1991 | |
Immediate Family Member of Management or Principal Owner | Property | ||||||
Related Party Transaction [Line Items] | ||||||
Capital lease obligations | $ 900,000 | |||||
Immediate Family Member of Management or Principal Owner | Capital Lease Obligation Addition | ||||||
Related Party Transaction [Line Items] | ||||||
Capital lease obligations | $ 1,300,000 | |||||
Chief Executive Officer | Second Aircraft | ||||||
Related Party Transaction [Line Items] | ||||||
Termination period on lease | 12 months | |||||
Monthly lease payment | $ 132,000 | |||||
Capital lease deposit | $ 1,500,000 | |||||
Deposit termination period | 6 months | |||||
ACS | ||||||
Related Party Transaction [Line Items] | ||||||
Payments to related party | $ 6,200,000 | $ 62,900,000 | ||||
Receipts from Related Parties | $ 8,100,000 | $ 50,900,000 |
Variable Interest Entities (New
Variable Interest Entities (New Markets Tax Credit Entities) (Details) - Primary Beneficiary - USD ($) $ in Millions | Dec. 11, 2012 | Oct. 03, 2012 | Aug. 30, 2011 | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | |||||
Tax credit percentage | 39.00% | ||||
Restricted cash | $ 0.9 | $ 1.1 | |||
Percentage of recapture | 100.00% | ||||
Recapture period | 7 years | ||||
Assets | $ 140.9 | 140.9 | |||
Liabilities | $ 104.2 | $ 104.2 | |||
NMTC 1 | |||||
Variable Interest Entity [Line Items] | |||||
Financial support | $ 58.3 | ||||
Interest rate percent on financial support | 1.00% | ||||
NMTC 1 | Minimum | |||||
Variable Interest Entity [Line Items] | |||||
Interest rate percent on financial support | 1.00% | ||||
NMTC 1 | Maximum | |||||
Variable Interest Entity [Line Items] | |||||
Interest rate percent on financial support | 3.96% | ||||
NMTC 1 | US Bancorp | |||||
Variable Interest Entity [Line Items] | |||||
Financial support to other entity | $ 22.4 | ||||
NMTC 1 | CDE's | |||||
Variable Interest Entity [Line Items] | |||||
Financial support to other entity | $ 76.8 | ||||
NMTC 2 | |||||
Variable Interest Entity [Line Items] | |||||
Financial support | $ 37.7 | ||||
Interest rate percent on financial support | 1.00% | ||||
NMTC 2 | Minimum | |||||
Variable Interest Entity [Line Items] | |||||
Interest rate percent on financial support | 0.7099% | ||||
NMTC 2 | Maximum | |||||
Variable Interest Entity [Line Items] | |||||
Interest rate percent on financial support | 0.7693% | ||||
NMTC 2 | US Bancorp | |||||
Variable Interest Entity [Line Items] | |||||
Financial support to other entity | $ 17.5 | ||||
NMTC 2 | CDE's | |||||
Variable Interest Entity [Line Items] | |||||
Financial support to other entity | $ 55.2 | ||||
NMTC 3 | |||||
Variable Interest Entity [Line Items] | |||||
Financial support | $ 8.2 | ||||
Interest rate percent on financial support | 1.00% | ||||
NMTC 3 | Maximum | |||||
Variable Interest Entity [Line Items] | |||||
Interest rate percent on financial support | 1.35% | ||||
NMTC 3 | US Bancorp | |||||
Variable Interest Entity [Line Items] | |||||
Financial support to other entity | $ 3.8 | ||||
NMTC 3 | CDE's | |||||
Variable Interest Entity [Line Items] | |||||
Financial support to other entity | $ 12 |
Variable Interest Entities (Equ
Variable Interest Entities (Equity Method Investment) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Impairment of equity method investment | $ 0 | $ 12,593,000 | $ 0 | |
Next Generation Carrier-Class Communications Services Firm | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 40.80% | |||
Fair value of equity investment | $ 0 |
Commitments and Contingencies79
Commitments and Contingencies (Narratives) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2014 | |
Operating Leases as Lessee | ||||
Rental costs | $ 58,900,000 | $ 51,500,000 | $ 43,800,000 | |
Capital Leases as Lessee | ||||
Capital lease term | 14 years | |||
Capital lease obligations | $ 98,600,000 | |||
Self-Insurance | ||||
Coverage limit per incident | 700,000 | |||
Self insurance reserve | 4,000,000 | 4,100,000 | ||
Workers compensation self insurance coverage limit per incident | 500,000 | |||
Workers compensation self insurance reserve | 2,900,000 | 3,600,000 | ||
Tribal Mobility Fund I Grant | ||||
Grant proceeds | 1,527,000 | 14,007,000 | $ 1,136,000 | |
FCC | ||||
Tribal Mobility Fund I Grant | ||||
Federal grant award | $ 41,400,000 | |||
Grant proceeds | 0 | $ 13,800,000 | ||
Grant awards | $ 27,600,000 |
Commitments and Contingencies80
Commitments and Contingencies (Summary of Minimum Future Lease Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Operating | ||
2,017 | $ 46,249 | |
2,018 | 35,822 | |
2,019 | 27,525 | |
2,020 | 22,047 | |
2,021 | 16,797 | |
2022 and thereafter | 37,063 | |
Total minimum lease payments | 185,503 | |
Capital | ||
2,017 | 13,433 | |
2,018 | 13,440 | |
2,019 | 13,450 | |
2,020 | 13,459 | |
2,021 | 12,044 | |
2022 and thereafter | 7,705 | |
Total minimum lease payments | 73,531 | |
Less amount representing interest | 13,884 | |
Less current maturity of obligations under capital leases | 9,331 | |
Long-term obligations under capital leases, excluding current maturity | $ 50,316 | $ 59,651 |
Software Impairment (Details)
Software Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Plus software impairment charge | $ 0 | $ 29,839 | $ 0 |
Wireless, Internet, Video, Local Service, and Long Distance Customer Billing Systems | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Fair value of remaining capital expenditures | 0 | ||
Plus software impairment charge | 20,700 | ||
Internally Developed Machine-To-Machine Billing System | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Plus software impairment charge | 7,100 | ||
User Management Software | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Plus software impairment charge | $ 1,000 |
Selected Quarterly Financial 82
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 232,293 | $ 236,655 | $ 233,766 | $ 231,098 | $ 241,344 | $ 258,573 | $ 247,528 | $ 231,089 | $ 933,812 | $ 978,534 | $ 910,198 |
Operating income | 13,185 | 26,368 | 19,531 | 20,019 | 20,589 | 45,549 | 39,257 | 816 | 79,103 | 106,211 | 143,562 |
Net income (loss) | (607) | (973) | (422) | 326 | 2,588 | 19,802 | (14,701) | (17,721) | (1,676) | (10,032) | 59,244 |
Net income (loss) attributable to GCI, Inc. | $ (488) | $ (857) | $ (305) | $ 443 | $ 2,759 | $ 19,918 | $ (14,622) | $ (18,246) | $ (1,207) | $ (10,191) | $ 7,557 |