Document and Entity Information
Document and Entity Information - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Entity Registrant Name | GENERAL COMMUNICATION INC | |
Entity Central Index Key | 808,461 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock - Class A [Member] | ||
Entity Common Stock Shares Outstanding | 35,785 | |
Common Stock - Class B [Member] | ||
Entity Common Stock Shares Outstanding | 3,154 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 59,689 | $ 15,402 |
Receivables (including $0 and $27,944 from a related party at September 30, 2015 and December 31, 2014, respectively) | 189,039 | 212,441 |
Less allowance for doubtful receivables | 4,695 | 4,542 |
Net receivables | 184,344 | 207,899 |
Deferred income taxes | 49,075 | 56,120 |
Prepaid expenses | 13,068 | 12,179 |
Inventories | 10,075 | 17,032 |
Other current assets | 3,136 | 153 |
Total current assets | 319,387 | 308,785 |
Property and equipment | 2,435,768 | 2,341,511 |
Less accumulated depreciation | 1,350,470 | 1,229,029 |
Net property and equipment | 1,085,298 | 1,112,482 |
Goodwill | 239,098 | 229,560 |
Cable certificates | 191,635 | 191,635 |
Wireless licenses | 86,347 | 86,347 |
Other intangible assets, net of amortization | 65,053 | 66,015 |
Deferred loan and senior notes costs, net of amortization of $6,542 and $8,644 at September 30, 2015 and December 31, 2014, respectively | 16,969 | 10,949 |
Other assets | 27,791 | 52,725 |
Total other assets | 626,893 | 637,231 |
Total assets | 2,031,578 | 2,058,498 |
Current liabilities: | ||
Current maturities of obligations under long-term debt and capital leases | 11,902 | 8,722 |
Accounts payable (including $0 and $7,447 to a related party at September 30, 2015 and December 31, 2014, respectively) | 50,417 | 76,918 |
Deferred revenue | 33,917 | 29,314 |
Accrued payroll and payroll related obligations | 29,138 | 32,803 |
Accrued interest | 26,689 | 6,654 |
Accrued liabilities | 17,135 | 14,457 |
Subscriber deposits | 1,100 | 1,212 |
Total current liabilities | 170,298 | 170,080 |
Long-term debt, net | 1,345,098 | 1,036,056 |
Obligations under capital leases, excluding current maturities (including $1,832 and $1,857 due to a related party at September 30, 2015 and December 31, 2014, respectively) | 61,885 | 68,356 |
Deferred income taxes | 176,007 | 187,872 |
Long-term deferred revenue | 94,701 | 85,734 |
Other liabilities | 73,018 | 43,178 |
Total liabilities | $ 1,921,007 | $ 1,591,276 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Paid-in capital | $ (4,931) | $ 26,773 |
Retained earnings | 82,020 | 124,547 |
Total General Communication, Inc. stockholders' equity | 79,504 | 167,356 |
Non-controlling interests | 31,067 | 299,866 |
Total stockholders’ equity | 110,571 | 467,222 |
Total liabilities and stockholders’ equity | 2,031,578 | 2,058,498 |
Common Stock - Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 0 | 13,617 |
Less cost of 26 Class A common shares held in treasury at September 30, 2015 and December 31, 2014 | (249) | (249) |
Total stockholders’ equity | 0 | 13,617 |
Common Stock - Class B [Member] | ||
Stockholders' equity: | ||
Common stock | 2,664 | 2,668 |
Total stockholders’ equity | $ 2,664 | $ 2,668 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Related party receivable | $ 0 | $ 27,944 |
Deferred loan and senior notes costs, accumulated amortization | 6,542 | 8,644 |
Related party payable | 0 | 7,447 |
Capital lease obligations, excluding current maturities due to related party | $ 1,832 | $ 1,857 |
Common Stock - Class A [Member] | ||
Common Stock, no par (USD per share) | ||
Common stock authorized (shares) | 100,000,000 | 100,000,000 |
Common stock (shares) | 35,850,000 | 37,998,000 |
Common stock outstanding (shares) | 35,824,000 | 37,972,000 |
Treasury stock (shares) | 26,000 | 26,000 |
Common Stock - Class B [Member] | ||
Common Stock, no par (USD per share) | ||
Common stock authorized (shares) | 10,000,000 | 10,000,000 |
Common stock (shares) | 3,154,000 | 3,159,000 |
Common stock outstanding (shares) | 3,154,000 | 3,159,000 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Non-related party | $ 258,573 | $ 225,677 | $ 731,907 | $ 636,416 |
Related party | 0 | 15,048 | 5,283 | 44,991 |
Total revenues | 258,573 | 240,725 | 737,190 | 681,407 |
Cost of goods sold (exclusive of depreciation and amortization shown separately below): | ||||
Non-related party | 82,717 | 73,971 | 235,860 | 212,821 |
Related party | 0 | 2,930 | 881 | 8,236 |
Total cost of goods sold | 82,717 | 76,901 | 236,741 | 221,057 |
Selling, general and administrative expenses: | ||||
Non-related party | 82,655 | 71,717 | 249,090 | 211,144 |
Related party | 0 | 1,066 | 540 | 3,348 |
Total selling, general and administrative expenses | 82,655 | 72,783 | 249,630 | 214,492 |
Depreciation and amortization expense | 45,157 | 41,705 | 135,563 | 127,843 |
Software impairment charge | 2,571 | 0 | 29,839 | 0 |
Operating income | 45,473 | 49,336 | 85,417 | 118,015 |
Other income (expense): | ||||
Loss on extinguishment of debt | 0 | 0 | (27,700) | 0 |
Interest expense (including amortization of deferred loan fees) | (21,088) | (17,848) | (64,473) | (54,229) |
Impairment of equity method investment | 0 | 0 | (12,593) | 0 |
Derivative instrument unrealized income (loss) | 30 | 0 | (5,040) | 0 |
Other | 1,202 | (563) | 2,445 | (1,709) |
Other expense, net | (19,856) | (18,411) | (107,361) | (55,938) |
Income (loss) before income taxes | 25,617 | 30,925 | (21,944) | 62,077 |
Income tax (expense) benefit | (8,122) | (5,078) | 4,957 | (8,629) |
Net income (loss) | 17,495 | 25,847 | (16,987) | 53,448 |
Net income (loss) attributable to non-controlling interests | (136) | 15,932 | 278 | 36,466 |
Net income (loss) attributable to General Communication, Inc. | 17,631 | 9,915 | (17,265) | 16,982 |
Common Stock - Class A [Member] | ||||
Other income (expense): | ||||
Net income (loss) attributable to General Communication, Inc. | $ 16,213 | $ 9,161 | $ (15,838) | $ 15,686 |
Net income per common share | ||||
Basic net income attributable to General Communication, Inc. common stockholders (USD per share) | $ 0.45 | $ 0.24 | $ (0.45) | $ 0.41 |
Diluted net income attributable to General Communication, Inc. common stockholders (USD per share) | $ 0.44 | $ 0.24 | $ (0.45) | $ 0.41 |
Common Stock - Class B [Member] | ||||
Other income (expense): | ||||
Net income (loss) attributable to General Communication, Inc. | $ 1,418 | $ 754 | $ (1,427) | $ 1,296 |
Net income per common share | ||||
Basic net income attributable to General Communication, Inc. common stockholders (USD per share) | $ 0.45 | $ 0.24 | $ (0.45) | $ 0.41 |
Diluted net income attributable to General Communication, Inc. common stockholders (USD per share) | $ 0.44 | $ 0.24 | $ (0.45) | $ 0.41 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A Shares held in Treasury [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Common Stock - Class A [Member] | Common Stock - Class B [Member] |
Beginning balances, total stockholders' equity at Dec. 31, 2013 | $ 457,354 | $ (866) | $ 26,880 | $ 116,990 | $ 300,210 | $ 11,467 | $ 2,673 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 53,448 | 16,982 | 36,466 | ||||
Common stock repurchases and retirements | (1,972) | (1,972) | |||||
Shares issued under stock option plan | 344 | 344 | |||||
Issuance of restricted stock awards | 0 | (2,144) | 2,144 | ||||
Share-based compensation expense | 6,131 | 6,131 | |||||
Issuance of treasury shares related to deferred compensation payment | 715 | 617 | 98 | ||||
Distribution to non-controlling interest | (37,500) | (37,500) | |||||
Adjustment to investment by non-controlling interest | (2,131) | (2,131) | |||||
Other | 100 | 100 | 3 | (3) | |||
Ending balances, total stockholders' equity at Sep. 30, 2014 | 476,489 | (249) | 30,965 | 133,972 | 297,145 | 11,986 | 2,670 |
Beginning balances, total stockholders' equity at Dec. 31, 2014 | 467,222 | (249) | 26,773 | 124,547 | 299,866 | 13,617 | 2,668 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (16,987) | (17,265) | 278 | ||||
Common stock repurchases and retirements | (44,324) | (25,262) | (19,062) | ||||
Shares issued under stock option plan | 295 | 295 | |||||
Issuance of restricted stock awards | 0 | (5,146) | 5,146 | ||||
Share-based compensation expense | 7,982 | 7,982 | |||||
Distribution to non-controlling interest | (765) | (765) | |||||
Investment by non-controlling interest | 3,209 | 3,209 | |||||
Non-controlling interest acquisition | (305,831) | (34,310) | (271,521) | ||||
Other | (230) | (230) | 4 | (4) | |||
Ending balances, total stockholders' equity at Sep. 30, 2015 | $ 110,571 | $ (249) | $ (4,931) | $ 82,020 | $ 31,067 | $ 0 | $ 2,664 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (16,987) | $ 53,448 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization expense | 135,563 | 127,843 |
Loss on extinguishment of debt | 27,700 | 0 |
Software impairment charge | 29,839 | 0 |
Deferred income tax expense (benefit) | (5,006) | 8,629 |
Impairment of equity method investment | 12,593 | 0 |
Share-based compensation expense | 8,074 | 6,124 |
Other noncash income and expense items | 14,146 | 7,206 |
Change in operating assets and liabilities | 20,588 | 16,967 |
Net cash provided by operating activities | 226,510 | 220,217 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (134,562) | (124,871) |
Grant proceeds | 14,007 | 1,136 |
Purchase of businesses, net of cash received | (12,736) | (1,670) |
Proceeds from sale of investment | 7,551 | 0 |
Purchases of other assets and intangible assets | (7,191) | (7,735) |
Note receivable issued to an equity method investee | (3,000) | 0 |
Restricted cash | 49 | 5,871 |
Purchase of investments | 0 | (21,409) |
Other | (4,760) | 49 |
Net cash used for investing activities | (140,642) | (148,629) |
Cash flows from financing activities: | ||
Repayment of debt and capital lease obligations | (492,068) | (97,388) |
Issuance of 2025 Notes | 445,973 | 0 |
Borrowing on Amended Senior Credit Facility | 295,000 | 55,000 |
Purchase of noncontrolling interests | (282,505) | 0 |
Issuance of Searchlight note payable and derivative stock appreciation rights | 75,000 | 0 |
Purchase of treasury stock to be retired | (44,324) | (1,972) |
Payment of bond call premium | (20,244) | 0 |
Payment of debt issuance costs | (13,979) | 0 |
Distribution to non-controlling interest | (4,932) | (37,500) |
Proceeds from stock option exercises | 295 | 344 |
Borrowing on other long-term debt | 203 | 421 |
Net cash (used for) provided by financing activities | (41,581) | (81,095) |
Net increase (decrease) in cash and cash equivalents | 44,287 | (9,507) |
Cash and cash equivalents at beginning of period | 15,402 | 44,971 |
Cash and cash equivalents at end of period | $ 59,689 | $ 35,464 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Principles | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Summary of Significant Accounting Principles | Business and Summary of Significant Accounting Principles In the following discussion, GCI and its direct and indirect subsidiaries are referred to as “we,” “us” and “our.” (a) Business GCI, an Alaska corporation, was incorporated in 1979 . We provide a full range of wireless, data, video, and voice services to residential customers, businesses, governmental entities and educational institutions primarily in Alaska. (b) Principles of Consolidation Our consolidated financial statements include the consolidated accounts of GCI 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) 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 Statements of Operations for the nine months ended September 30, 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 transfered 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 carrying amount of the non-controlling interest has been recognized as additional paid-in capital in our Consolidated Statement of Stockholders' Equity. The impact of the AWN NCI Acquisition is summarized in the following table (amounts in thousands): Reduction of non-controlling interest $ 268,364 Additional paid-in capital 35,467 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 Sheets at their allocated cost on the day of acquisition. 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 Statements of Operations for the nine months ended September 30, 2015 . During the nine months ended September 30, 2015 , we completed three immaterial 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 new 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. The standard permits the use of either the retrospective or cumulative effect transition method. Early adoption is permitted for annual periods beginning December 15, 2016. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The update is in response to accounting complexity concerns, particularly from the asset management industry. ASU 2015-02 modifies the consolidation evaluation for reporting organizations that are required to determine whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The ASU is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including early adoption in an interim period. The adoption of this guidance is not expected to have a material effect on our financial position or results of operations. 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 - Imputed 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. For public business entities, this update is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. An entity should apply the new guidance on a retrospective basis. We expect to adopt this guidance when effective, and do not expect this guidance to have a material effect on our financial position or results of operation, although it will change the financial statement classification of our debt issuance costs. 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. The amendments are effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, but not required; at this time we are not early adopting. As the objectives of this standard are to clarify the codification, correct unintended application of guidance, eliminate inconsistencies, and, to improve the codification’s presentation of guidance, the adoption of this standard is not expected to have a material 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. The ASU is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations. (f) Regulatory Accounting We account for our regulated operations in accordance with the accounting principles for regulated enterprises. These accounting principles recognize 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. (g) Earnings (Loss) per Common Share We compute net income (loss) attributable to GCI per share of Class A and Class B common stock using the “two class” method. Therefore, basic net income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common and dilutive common equivalent shares outstanding during the period. The computation of the dilutive net income (loss) per share of Class A common stock assumes the conversion of Class B common stock to Class A common stock, while the dilutive net income (loss) per share of Class B common stock does not assume the conversion of those shares. Additionally, in applying the “two-class” method, undistributed earnings are allocated to both common shares and participating securities. Our restricted stock grants are entitled to dividends and meet the criteria of a participating security. We allocate undistributed earnings in periods of net income based on the contractual participation rights of Class A common shares, Class B common shares, and participating securities as if the earnings for the period had been distributed. We do not allocate undistributed earnings to participating securities in periods in which we have a net loss. In accordance with our Articles of Incorporation, if and when dividends are declared on our common stock in accordance with Alaska corporate law, equivalent dividends shall be paid with respect to the shares of Class A and Class B common stock, including participating securities. Both classes of common stock have identical dividend rights and would therefore share equally in our net assets in the event of liquidation. As such, we have allocated undistributed earnings on a proportionate basis. Earnings (loss) per common share (“EPS”) and common shares used to calculate basic and diluted EPS consist of the following (amounts in thousands, except per share amounts): Three Months Ended September 30, 2015 2014 Class A Class B Class A Class B Basic net income per share: Numerator: Net income available to common stockholders $ 16,213 1,418 $ 9,161 754 Less: Undistributed income allocable to participating securities (920 ) — (526 ) — Undistributed income allocable to common stockholders 15,293 1,418 8,635 754 Denominator: Weighted average common shares outstanding 34,031 3,155 36,220 3,162 Basic net income attributable to GCI common stockholders per common share $ 0.45 0.45 $ 0.24 0.24 Three Months Ended September 30, 2015 2014 Class A Class B Class A Class B Diluted net income per share: Numerator: Undistributed income allocable to common stockholders for basic computation $ 15,293 1,418 $ 8,635 754 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,418 — 754 — Reallocation of undistributed earnings as a result of conversion of dilutive securities 22 (34 ) 2 (3 ) Effect of derivative instruments that may be settled in cash or shares (18 ) — — — Effect of share based compensation that may be settled in cash or shares 4 — (3 ) — Net income adjusted for allocation of undistributed earnings and effect of contracts that may be settled in cash or shares $ 16,719 1,384 $ 9,388 751 Denominator: Number of shares used in basic computation 34,031 3,155 36,220 3,162 Conversion of Class B to Class A common shares outstanding 3,155 — 3,162 — Unexercised stock options 122 — 120 — Effect of derivative instruments that may be settled in cash or shares 781 — — — Effect of share based compensation that may be settled in cash or shares 26 — 26 — Number of shares used in per share computation 38,115 3,155 39,528 3,162 Diluted net income attributable to GCI common stockholders per common share $ 0.44 0.44 $ 0.24 0.24 Nine Months Ended September 30, 2015 2015 2014 Class A Class B Class A Class B Basic net income (loss) per share: Numerator: Net income (loss) available to common stockholders $ (15,838 ) (1,427 ) $ 15,686 1,296 Less: Undistributed income allocable to participating securities — — (868 ) — Undistributed income (loss) allocable to common stockholders (15,838 ) (1,427 ) 14,818 1,296 Denominator: Weighted average common shares outstanding 35,037 3,158 36,149 3,162 Basic net income (loss) attributable to GCI common stockholders per common share $ (0.45 ) (0.45 ) $ 0.41 0.41 Nine Months Ended September 30, 2015 2015 2014 Class A Class B Class A Class B Diluted net income (loss) per share: Numerator: Undistributed income (loss) allocable to common stockholders for basic computation $ (15,838 ) (1,427 ) $ 14,818 1,296 Reallocation of undistributed earnings (loss) as a result of conversion of Class B to Class A shares (1,427 ) — 1,296 — Reallocation of undistributed earnings as a result of conversion of dilutive securities — — 3 (5 ) Effect of share based compensation that may be settled in cash or shares — — (4 ) — Net income (loss) adjusted for allocation of undistributed earnings and effect of contracts that may be settled in cash or shares $ (17,265 ) (1,427 ) $ 16,113 1,291 Denominator: Number of shares used in basic computation 35,037 3,158 36,149 3,162 Conversion of Class B to Class A common shares outstanding 3,158 — 3,162 — Unexercised stock options — — 120 — Effect of share based compensation that may be settled in cash or shares — — 26 — Number of shares used in per share computation 38,195 3,158 39,457 3,162 Diluted net income (loss) attributable to GCI common stockholders per common share $ (0.45 ) (0.45 ) $ 0.41 0.41 Weighted average shares associated with outstanding securities for the three and nine months ended September 30, 2015 and 2014 , which have been excluded from the computations of diluted EPS, because the effect of including these securities would have been anti-dilutive, consist of the following (shares, in thousands): Three Months Ended Nine Months Ended September 30, 2015 2014 2015 2014 Derivative instruments that may be settled in cash or shares, the effect of which is anti-dilutive — — 595 — Shares associated with anti-dilutive unexercised stock options — 28 120 30 Share-based compensation that may be settled in cash or shares, the effect of which is anti-dilutive — — 26 — Total excluded — 28 741 30 (h) Common Stock Following are the changes in issued common stock for the nine months ended September 30, 2015 and 2014 (shares, in thousands): Class A Class B Balances at December 31, 2013 37,299 3,165 Class B shares converted to Class A 3 (3 ) Shares issued upon stock option exercises 40 — Share awards issued 1,186 — Shares retired (148 ) — Shares acquired to settle minimum statutory tax withholding requirements (37 ) — Balances at September 30, 2014 38,343 3,162 Balances at December 31, 2014 37,998 3,159 Class B shares converted to Class A 5 (5 ) Shares issued upon stock option exercises 38 — Share awards issued 647 — Shares retired (2,761 ) Shares acquired to settle minimum statutory tax withholding requirements (77 ) — Balances at September 30, 2015 35,850 3,154 GCI’s Board of Directors has authorized a common stock buyback program for the repurchase of GCI’s Class A and Class B common stock in order to reduce the outstanding shares of Class A and Class B common stock. We are authorized to increase our repurchase limit $5.0 million per quarter indefinitely and to use stock option exercise proceeds to repurchase additional shares. If stock repurchases are less than the total approved quarterly amount the difference may be carried forward and used to repurchase additional shares in future quarters. The cost of the repurchased common stock reduced Common Stock and Retained Earnings in our Consolidated Balance Sheets. During the three months ended September 30, 2015 and 2014 , we repurchased 0.4 million and 0.1 million shares, respectively, of our Class A common stock under the stock buyback program at a cost of $7.3 million and $1.3 million , respectively. During the nine months ended September 30, 2015 and 2014 , we repurchased 2.8 million and 0.1 million shares, respectively, of our Class A common stock under the stock buyback program at a cost of $43.2 million and $1.3 million , respectively. The stock was constructively retired as of September 30, 2015 . Under this program we are currently authorized to make up to $94.3 million of repurchases as of September 30, 2015 . We expect to continue the repurchases for an indefinite period dependent on leverage, liquidity, company performance, and market conditions and subject to continued oversight by GCI’s Board of Directors. (i) 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 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 believe it is probable the receivable will not be recovered. We do not have any off-balance-sheet credit exposure related to our customers. (j) Derivative Financial Instruments We account for our derivative instruments in accordance with ASC 815-10, Derivatives and Hedging. ASC 815-10 establishes accounting and reporting standards requiring that derivative instruments, including derivative instruments embedded in other contracts, be recorded on the balance sheet as either an asset or liability measured at its fair value. ASC 815-10 also requires that changes in the fair value of derivative instruments be recognized currently in results of operations unless specific hedge accounting criteria are met. We have not entered into any hedging activities to date. We recognize all derivative instruments as either assets or liabilities in our Consolidated Balance Sheets at their respective fair values. Our derivative instruments (as described in Note 5) includes stock appreciation rights, which have been recorded as a liability at fair value, and will be revalued at each reporting date, with changes in the fair value of the instrument included in our Consolidated Statements of Operations as Derivative Instrument Unrealized Income (Loss). (k) Guarantees 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 ("EIP") from us and have a qualifying monthly wireless service plan with us. 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 guarantees. The recognition of subsequent adjustments to the guarantees 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 guarantees. (l) Revenue Recognition Wireless We offer new and existing wireless customers the option to participate in Upgrade Now, a program that is described above in Note 1(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 the guarantee 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 Note 1(k) for more information on guarantees. Remote and Urban High Cost Support We recorded high cost support revenue under the Universal Service Fund (“USF”) program of $16.5 million and $16.5 million for the three months ended September 30, 2015 and 2014 , respectively, and $50.6 million and $50.0 million for the nine months ended September 30, 2015 and 2014 , respectively. At September 30, 2015 , we have $46.1 million in high cost support accounts receivable. (m) 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. Significant items subject to estimates and assumptions include the allowance for doubtful receivables, unbilled revenues, accrual of the USF high cost Remote area program support, share-based compensation, inventory at lower of cost or market, reserve for future customer credits, liability for incurred but not reported medical insurance claims, valuation allowances for deferred income tax assets, depreciable and amortizable lives of assets, the carrying value of long-lived assets including goodwill, cable certificates, wireless licenses,and broadcast licenses, the fair value of equity method investments evaluated for impairment, our effective tax rate, imputed interest rate, purchase price allocations, deferred lease expense, asset retirement obligations, the accrual of cost of goods sold (exclusive of depreciation and amortization expense), depreciation, the derivative stock appreciation rights liability, guarantees, and the accrual of contingencies and litigation. Actual results could differ from those estimates. (n) 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. The following are certain surcharges reported on a gross basis in our Consolidated Statements of Operations (amounts in thousands): Three Months Ended Nine Months Ended September 30, 2015 2014 2015 2014 Surcharges reported gross $ 1,426 990 3,960 3,224 (o) Reclassifications and Immaterial Error Correction Reclassifications have been made to the 2014 financial statements to make them comparable with the 2015 presentation. During the third quarter of 2015, we determined that the purchase of the noncontrolling interest from ACS in the Consolidated Statement of Cash Flows for the three months ended March 31, 2015 and the six months ended June 30, 2015 should have been reported as a financing outflow instead of an investing outflow as previously reported. The classification error had no effect on previously reported Consolidated Balance Sheets, Consolidated Statements of Operations, Adjusted EBITDA, or the Consolidated Statement of Stockholders' Equity. In order to assess materiality of this error we considered SAB 99, "Materiality" and SAB 108, "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements," and determined that the impact of this classification error on prior period interim consolidated financial statements was immaterial. The impact of the immaterial classification error for the prior periods is as follows (amounts in thousands): Consolidated Statements of Cash Flows for the three months ended March 31, 2015 As Previously Reported Adjustment As Revised Net cash used for investing activities $ (328,682 ) 280,505 (48,177 ) Net cash provided by financing activities 281,370 (280,505 ) 865 Consolidated Statements of Cash Flows for the six months ended June 30, 2015 Net cash used for investing activities $ (372,469 ) 280,505 (91,964 ) Net cash provided (used) by financing activities 251,698 (280,505 ) (28,807 ) |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows Supplemental Disclosures | 9 Months Ended |
Sep. 30, 2015 | |
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): Nine Months Ended September 30, 2015 2014 Decrease in accounts receivable, net $ 16,916 5,185 Increase in prepaid expenses (813 ) (3,278 ) Decrease in inventories 6,957 2,449 Decrease in other current assets 17 135 Increase in other assets (7,886 ) (511 ) Decrease in accounts payable (8,095 ) (2,365 ) Increase in deferred revenues 1,532 4,198 Decrease in accrued payroll and payroll related obligations (3,783 ) (246 ) Increase (decrease) in accrued liabilities 2,505 (722 ) Increase in accrued interest 20,035 14,205 Decrease in subscriber deposits (590 ) (160 ) Decrease in long-term deferred revenue (6,437 ) (3,108 ) Increase in components of other long-term liabilities 230 1,185 Total change in operating assets and liabilities $ 20,588 16,967 The following item is for the nine months ended September 30, 2015 and 2014 (amounts in thousands): Net cash paid or received: 2015 2014 Interest paid including capitalized interest $ 43,195 41,396 The following items are non-cash investing and financing activities for the nine months ended September 30, 2015 and 2014 (amounts in thousands): 2015 2014 Non-cash consideration for Wireless Acquisition $ 23,326 — Non-cash additions for purchases of property and equipment $ 17,683 36,805 Asset retirement obligation additions to property and equipment $ 1,730 382 Net capital lease obligation $ — 9,386 Distribution to non-controlling interest $ — 4,167 Deferred compensation distribution denominated in shares $ — 617 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Goodwill increased $9.5 million during the nine months ended September 30, 2015 as a result of business combinations. Amortization expense for amortizable intangible assets was as follows (amounts in thousands): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Amortization expense $ 2,701 2,382 $ 7,919 $ 6,981 Amortization expense for amortizable intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in thousands): Years Ending December 31, 2015 $ 10,636 2016 $ 8,957 2017 $ 6,653 2018 $ 4,733 2019 $ 3,660 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Amended Senior Credit Facility On February 2, 2015, GCI Holdings, Inc. ("Holdings"), our wholly owned subsidiary, entered into a Fourth Amended and Restated Credit and Guarantee Agreement with MUFG Union Bank, N.A., Suntrust Bank, Bank of America, N.A., as documentation agent, and Credit Agricole Corporate and Investment Bank, as administrative agent ("Amended Senior Credit Facility"). The Amended Senior Credit Facility added a $275.0 million Term B loan to the existing Senior Credit Facility described in Note 6(c) of our December 31, 2014 annual report on Form 10-K. The Amended Senior Credit Facility was subsequently amended on August 3, 2015 ("First Amendment"). Under the Amended Senior Credit Facility and First Amendment, the interest rate for the Term B loan is London Interbank Offered Rate ("LIBOR") plus 3.25% , with a 0.75% LIBOR floor. The Term B loan requires principal payments of 0.25% of the original principal amount on the last day of each calendar quarter with the full amount maturing on February 2, 2022 or December 3, 2020 if our Senior Notes due 2021 are not refinanced prior to such date. The interest rate, maturity, and other terms of the existing Senior Credit Facility as described in Note 6(c) of our December 31, 2014 annual report on Form 10-K did not change as a result of this amendment. In connection with the Amended Senior Credit Facility and First Amendment, we paid loan fees and other expenses of $6.2 million that were deferred and are being amortized over the life of the Amended Senior Credit Facility. Searchlight Note On February 2, 2015, we sold an unsecured promissory note to an affiliate of Searchlight Capital, L.P. ("Searchlight") in the principal amount of $75.0 million at an issue price of 100% that will mature on February 2, 2023 and bears interest at a rate of 7.5% per year ("Searchlight Note"). We may not prepay the Searchlight Note prior to February 2, 2019. On July 13, 2015, we amended the Searchlight transaction documents to permit Searchlight to pledge the Searchlight Note and related stock appreciation rights, subject to our right to redeem the Searchlight Note for 50% of its then current outstanding balance in the event a lender attempts to enforce its rights with respect to such pledged collateral. In conjunction with the Searchlight Note, we entered into a stock appreciation rights agreement pursuant to which we issued to Searchlight three million stock appreciation rights which entitles Searchlight to receive, upon exercise, an amount payable at our election in either cash or shares of GCI's Class A common stock equal in value to the excess of the fair market value of a share of GCI Class A common stock on the date of exercise over the price of $13.00 . We allocated the $75.0 million in total proceeds received to the stock appreciation rights based on the fair value of the stock appreciation rights on the day of issuance with the remainder allocated to the Searchlight Note. The allocation resulted in a $21.7 million discount for the Searchlight Note that will be amortized over the term of the note using the effective interest method. Please see note 5 for additional information on the stock appreciation rights. We have the option to pay the annual interest obligation on the Searchlight Note in cash or by capitalizing such interest and adding it to the outstanding principal amount of the note. If we elect to capitalize interest in a given year, we are also required to issue additional stock appreciation rights in the amount of four hundredths of a stock appreciation right for each dollar of interest being capitalized. Senior Notes On April 1, 2015 (“Closing Date”), GCI, Inc. our wholly owned subsidiary, completed an offering of $450.0 million in aggregate principal amount of 6.875% Senior Notes due 2025 (“2025 Notes”) at an issue price of 99.105% . We used the net proceeds from this offering to repay and retire all $425.0 million of our outstanding senior unsecured notes due 2019 (“2019 Notes”). At any time before April 15, 2020, the 2025 Notes are redeemable at our option, in whole or in part, on not less than thirty nor more than sixty days’ notice, at a redemption price equal to 100% of the principal amount of the 2025 Notes, plus a premium calculated as defined in the 2025 Notes agreement, and accrued and unpaid interest (if any) to the date of redemption. At any time on or after April 15, 2020, the 2025 Notes are redeemable at our option, in whole or in part, on not less than thirty nor more than sixty days’ notice, at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest (if any) to the date of redemption: If redeemed during the twelve month period commencing April 15 of the year indicated: Redemption Price 2020 103.438 % 2021 102.292 % 2022 101.146 % 2023 and thereafter 100.000 % The 2025 Notes mature on April 15, 2025. Semi-annual interest payments are payable on April 15 and October 15, beginning on October 15, 2015. The 2025 Notes were issued pursuant to an Indenture, dated as of April 1, 2015, between us and MUFG Union Bank, N.A., as trustee. We are not required to make mandatory sinking fund payments with respect to the 2025 Notes. Upon the occurrence of a change of control, each holder of the 2025 Notes will have the right to require us to purchase all or any part of such holder’s 2025 Notes at a purchase price equal to 101% of the principal amount of such 2019 Notes, plus accrued and unpaid interest on such 2025 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 2025 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. The 2025 Notes are senior unsecured obligations which rank equally in right of payment with our existing and future senior unsecured debt, including our 6.75% Senior Notes due 2021, and senior in right of payment to all future subordinated indebtedness. The covenants in the indenture restrict GCI, Inc. and certain of its 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. These covenants are subject to a number of limitations and exceptions, as further described in the 2025 Notes indenture. We paid closing costs totaling $7.9 million in connection with the offering, which were recorded as deferred loan costs and are being amortized over the term of the 2025 Notes. We recorded a $27.7 million loss on extinguishment of debt in our Consolidated Statements of Operations for the nine months ended September 30, 2015 . Included in the loss was $20.2 million in call premium payments to redeem our 2019 Notes, $5.4 million in unamortized 2019 Notes deferred loan costs, and $2.1 million for the unamortized portion of the 2019 Notes original issue discount. |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivative Instruments | Fair Value Measurements and Derivative Instruments Recurring Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 are as follows (amounts in thousands): September 30, 2015 Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Deferred compensation plan assets (mutual funds) $ 1,660 — — 1,660 Liabilities: Derivative stock appreciation rights $ — — 26,700 26,700 December 31, 2014 Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Deferred compensation plan assets (mutual funds) $ 2,068 — — 2,068 (1) Quoted prices in active markets for identical assets or liabilities (2) Observable inputs other than quoted prices in active markets for identical assets and liabilities (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. The fair value of our derivative stock appreciation rights was determined using a lattice-based valuation model (see the section "Derivative Financial Instruments" below for more information). Current and Long-Term Debt The carrying amounts and approximate fair values of our current and long-term debt, excluding capital leases, at September 30, 2015 and December 31, 2014 are as follows (amounts in thousands): September 30, December 31, Carrying Amount Fair Value Carrying Amount Fair Value Current and long-term debt $ 1,348,448 1,380,691 1,036,678 1,055,952 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 both issued by GCI, Inc., our wholly owned subsidiary, are based upon quoted market prices for the same or similar issues (Level 2). • The fair value of our Searchlight Note Payable is based on the current rates offered to us for similar remaining maturities plus an additional premium to reflect its subordination to our 2021 and 2025 Notes (Level 3). • The fair value of our Amended 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). Derivative Financial Instruments In connection with the $75.0 million unsecured promissory note issued to Searchlight on February 2, 2015, we entered into a stock appreciation rights agreement pursuant to which we issued to Searchlight three million stock appreciation rights. Each stock appreciation right entitles Searchlight to receive, upon exercise, an amount payable at our election in either cash or shares of GCI's Class A common stock equal in value to the excess of the fair market value of a share of GCI Class A common stock on the date of exercise over the price of $13.00 . The instruments are exercisable on the fourth anniversary of the grant date and will expire eight years from the date of grant. We have determined that the stock appreciation rights are required to be separately accounted for as derivative instruments and subject to fair value liability accounting under ASC 815-10. We use a lattice based valuation model to value the stock appreciation rights liability at each reporting date. The model incorporates transaction details such as our stock price, instrument term and settlement provisions, as well as highly complex and subjective assumptions about volatility, risk-free interest rates, issuer behavior and holder behavior. The lattice model uses highly subjective assumptions and the use of other reasonable assumptions could provide different results. We revalue our derivative liability at each reporting period and recognize gains or losses in our Consolidated Statements of Operations attributable to the change in the fair value of the instruments. The stock appreciation rights liability is included within Other Liabilities in our Consolidated Balance Sheets and are classified as Level 3 within the fair value hierarchy. The following table summarizes the changes in fair value of all financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2015 : Fair Value Measurement Using Level 3 Inputs Derivative Stock Appreciation Rights Balance at January 1, 2015 $ — Issuance 21,660 Fair value adjustment at end of period, included in Other Income (Expense) 5,040 Balance at September 30, 2015 $ 26,700 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Share-based Compensation Our Amended and Restated 1986 Stock Option Plan ("Stock Option Plan"), provides for the grant of options and restricted stock awards (collectively "award") 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. Substantially all options vest in equal installments over a period of five years and expire ten years from the date of grant. The requisite service period of our awards is generally the same as the vesting period. Options granted pursuant to the Stock Option Plan are only exercisable if at the time of exercise the option holder is our employee, non-employee director, or a consultant or advisor working on our behalf. New shares are issued when stock option agreements are exercised or restricted stock awards are granted. We have not issued any new options since 2010 when we transitioned to issuing restricted stock awards. We have 1.8 million shares available for grant under the Stock Option Plan at September 30, 2015 . A summary of option activity under the Stock Option Plan as of September 30, 2015 and changes during the period then ended is presented below: Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 308 $ 6.86 Exercised (38 ) $ 7.77 Expired (2 ) $ 7.63 Outstanding at September 30, 2015 268 $ 6.73 3.4 years $ 2,828 Exercisable at September 30, 2015 268 $ 6.73 3.4 years $ 2,828 A summary of nonvested restricted stock award activity under the Stock Option Plan as of September 30, 2015 and changes during the period then ended is presented below: Shares (in thousands) Weighted Average Grant Date Fair Value Nonvested at January 1, 2015 1,744 $ 9.11 Granted 647 $ 14.70 Vested (342 ) $ 10.27 Forfeited (7 ) $ 12.54 Nonvested at September 30, 2015 2,042 The weighted average grant date fair value of awards granted during the nine months ended September 30, 2015 and 2014 , were $14.70 and $9.89 , respectively. We have recorded share-based compensation expense of $8.0 million and $6.1 million for the nine months ended September 30, 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 was $10.8 million relating to 2.0 million restricted stock awards as of September 30, 2015 . We expect to recognize share-based compensation expense over a weighted average period of 1.6 years for restricted stock awards. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segments | Segments 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 offer a full range of retail wireless, data, video and voice services to residential customers, businesses, governmental entities and educational institutions; wholesale data and voice services to common carrier customers; data and managed services to rural schools and health organizations and regulated voice services to residential and commercial customers in rural communities primarily in Southwest Alaska. We evaluate performance and allocate resources based on earnings before net interest expense, income taxes, depreciation and amortization expense, loss on extinguishment of debt, software impairment charge, derivative instrument unrealized income (loss), share-based compensation expense, accretion expense, loss attributable to non-controlling interest resulting from New Markets Tax Credit ("NMTC") transactions, gains and impairment losses on equity and cost method investments, and other non-cash adjustments, plus imputed interest on financed devices (“Adjusted EBITDA”). Management believes that this measure is useful to investors and other users of our financial information in evaluating operating profitability as an analytical indicator of income generated to service debt and fund capital expenditures. In addition, multiples of current or projected earnings before depreciation and amortization, net interest expense, and income taxes (“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, “Business and Summary of Significant Accounting Policies” of this Form 10-Q. 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. Summarized financial information for our reportable segments for the three and nine months ended September 30, 2015 and 2014 follows (amounts in thousands): Three Months Ended Nine Months Ended Wireless Wireline Total Reportable Segments Wireless Wireline Total Reportable Segments September 30, 2015 Revenues $ 80,424 178,149 258,573 $ 207,568 529,622 737,190 Adjusted EBITDA $ 57,404 39,122 96,526 $ 140,518 119,312 259,830 September 30, 2014 Revenues $ 76,398 164,327 240,725 $ 208,312 473,095 681,407 Adjusted EBITDA $ 47,279 45,915 93,194 $ 125,475 126,987 252,462 A reconciliation of reportable segment Adjusted EBITDA to consolidated income (loss) before income taxes follows (amounts in thousands): Three Months Ended September 30, Nine Months Ended 2015 2014 2015 2014 Reportable segment Adjusted EBITDA $ 96,526 93,194 $ 259,830 252,462 Less depreciation and amortization expense (45,157 ) (41,705 ) (135,563 ) (127,843 ) Less software impairment charge (2,571 ) — (29,839 ) — Less share-based compensation expense (2,660 ) (2,153 ) (8,074 ) (6,124 ) Less accretion expense (191 ) (359 ) (992 ) (961 ) Other (474 ) 359 55 481 Consolidated operating income 45,473 49,336 85,417 118,015 Less other expense, net (19,856 ) (18,411 ) (107,361 ) (55,938 ) Consolidated income (loss) before income taxes $ 25,617 30,925 $ (21,944 ) 62,077 |
Related Party Transaction
Related Party Transaction | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Related Party Transaction 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 do 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 nine months ended September 30, 2014 , we paid $48.2 million and received $29.5 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 | 9 Months Ended |
Sep. 30, 2015 | |
Noncontrolling Interest [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 $59.3 million 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, 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. 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 September 30, 2015 . The value attributed to the puts/calls is nominal. We have determined that TIF, TIF 2, TIF 2-USB and TIF 3 are VIEs. The consolidated financial statement 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 September 30, 2015 and December 31, 2014 . Equity Method Investment We own a 40.8% interest in a next generation carrier-class communications services firm. We account for our investment using the equity method. Due to declining economic conditions in the sector that it operates, additional financing was needed for the company to maintain its business plan. In March 2015, the existing owners provided financial support in the form of a loan of which our portion is $3.0 million . We determined that the additional financing provided to the company was a reconsideration event under ASC 810 and have subsequently determined that the entity is a VIE due to insufficient equity to finance its operations as a result of the decline in economic conditions. We concluded that the company's board has the power to direct the significant activities of the entity. The board is comprised of five members of which we may choose two of the board members. As we do not control the board, we concluded that we do not have the power to direct the significant activities of the entity and are not the primary beneficiary. Our maximum exposure to loss related to the VIE is the combination of the investment and note receivable. We do not have a contractual obligation to provide additional financing. 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 nine months ended September 30, 2015 that is recorded in Other Income (Expense) in our Consolidated Statements 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. We have a note receivable with the entity of $3.0 million that is recorded in Other Current Assets in our Consolidated Balance Sheets as of September 30, 2015 . We believe we will recover the value of the note receivable, therefore, we have not recorded an impairment loss related to the note receivable as of September 30, 2015. We will continue to monitor the entity's financial performance and record an impairment to the note receivable if it becomes apparent that the full value is no longer recoverable. |
Software Impairment
Software Impairment | 9 Months Ended |
Sep. 30, 2015 | |
Research and Development [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 nine months ended September 30, 2015 , by recording an expense which is included in Software Impairment Charge in our Consolidated Statements of Operations. During the nine months ended September 30, 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 $0.5 million and $7.1 million during the three and nine months ended September 30, 2015 , respectively, by recording an expense which is included in Software Impairment Charge in our Consolidated Statements of Operations. During the third quarter of 2015, we evaluated user management software we purchased in 2014 and determined that we would not be able to use the software. Accordingly we recognized an impairment of $1.0 million during the three and nine months ended September 30, 2015 by recording an expense which is included in Software Impairment Charge in our Consolidated Statement of Operations. |
Business and Summary of Signi17
Business and Summary of Significant Accounting Principles (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the consolidated accounts of GCI 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 | 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 new 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. The standard permits the use of either the retrospective or cumulative effect transition method. Early adoption is permitted for annual periods beginning December 15, 2016. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The update is in response to accounting complexity concerns, particularly from the asset management industry. ASU 2015-02 modifies the consolidation evaluation for reporting organizations that are required to determine whether they should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The ASU is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including early adoption in an interim period. The adoption of this guidance is not expected to have a material effect on our financial position or results of operations. 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 - Imputed 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. For public business entities, this update is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. An entity should apply the new guidance on a retrospective basis. We expect to adopt this guidance when effective, and do not expect this guidance to have a material effect on our financial position or results of operation, although it will change the financial statement classification of our debt issuance costs. 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. The amendments are effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, but not required; at this time we are not early adopting. As the objectives of this standard are to clarify the codification, correct unintended application of guidance, eliminate inconsistencies, and, to improve the codification’s presentation of guidance, the adoption of this standard is not expected to have a material 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. The ASU is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations. |
Regulatory Accounting | Regulatory Accounting We account for our regulated operations in accordance with the accounting principles for regulated enterprises. These accounting principles recognize 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. |
Earnings per Common Share | Earnings (Loss) per Common Share We compute net income (loss) attributable to GCI per share of Class A and Class B common stock using the “two class” method. Therefore, basic net income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common and dilutive common equivalent shares outstanding during the period. The computation of the dilutive net income (loss) per share of Class A common stock assumes the conversion of Class B common stock to Class A common stock, while the dilutive net income (loss) per share of Class B common stock does not assume the conversion of those shares. Additionally, in applying the “two-class” method, undistributed earnings are allocated to both common shares and participating securities. Our restricted stock grants are entitled to dividends and meet the criteria of a participating security. We allocate undistributed earnings in periods of net income based on the contractual participation rights of Class A common shares, Class B common shares, and participating securities as if the earnings for the period had been distributed. We do not allocate undistributed earnings to participating securities in periods in which we have a net loss. In accordance with our Articles of Incorporation, if and when dividends are declared on our common stock in accordance with Alaska corporate law, equivalent dividends shall be paid with respect to the shares of Class A and Class B common stock, including participating securities. Both classes of common stock have identical dividend rights and would therefore share equally in our net assets in the event of liquidation. As such, we have allocated undistributed earnings on a proportionate basis. |
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 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 believe it is probable the receivable will not be recovered. We do not have any off-balance-sheet credit exposure related to our customers. |
Derivative Financial Instruments | Derivative Financial Instruments We account for our derivative instruments in accordance with ASC 815-10, Derivatives and Hedging. ASC 815-10 establishes accounting and reporting standards requiring that derivative instruments, including derivative instruments embedded in other contracts, be recorded on the balance sheet as either an asset or liability measured at its fair value. ASC 815-10 also requires that changes in the fair value of derivative instruments be recognized currently in results of operations unless specific hedge accounting criteria are met. We have not entered into any hedging activities to date. We recognize all derivative instruments as either assets or liabilities in our Consolidated Balance Sheets at their respective fair values. Our derivative instruments (as described in Note 5) includes stock appreciation rights, which have been recorded as a liability at fair value, and will be revalued at each reporting date, with changes in the fair value of the instrument included in our Consolidated Statements of Operations as Derivative Instrument Unrealized Income (Loss). |
Guarantee Liabilities | Guarantees 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 ("EIP") from us and have a qualifying monthly wireless service plan with us. 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 guarantees. The recognition of subsequent adjustments to the guarantees 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 guarantees. |
Revenue Recognition | Revenue Recognition Wireless We offer new and existing wireless customers the option to participate in Upgrade Now, a program that is described above in Note 1(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 the guarantee 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 Note 1(k) for more information on guarantees. |
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. Significant items subject to estimates and assumptions include the allowance for doubtful receivables, unbilled revenues, accrual of the USF high cost Remote area program support, share-based compensation, inventory at lower of cost or market, reserve for future customer credits, liability for incurred but not reported medical insurance claims, valuation allowances for deferred income tax assets, depreciable and amortizable lives of assets, the carrying value of long-lived assets including goodwill, cable certificates, wireless licenses,and broadcast licenses, the fair value of equity method investments evaluated for impairment, our effective tax rate, imputed interest rate, purchase price allocations, deferred lease expense, asset retirement obligations, the accrual of cost of goods sold (exclusive of depreciation and amortization expense), depreciation, the derivative stock appreciation rights liability, guarantees, and the accrual of contingencies and litigation. Actual results could differ from those estimates. |
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 and Immaterial Error Correction Reclassifications have been made to the 2014 financial statements to make them comparable with the 2015 presentation. |
Business and Summary of Signi18
Business and Summary of Significant Accounting Principles (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The impact of the immaterial classification error for the prior periods is as follows (amounts in thousands): Consolidated Statements of Cash Flows for the three months ended March 31, 2015 As Previously Reported Adjustment As Revised Net cash used for investing activities $ (328,682 ) 280,505 (48,177 ) Net cash provided by financing activities 281,370 (280,505 ) 865 Consolidated Statements of Cash Flows for the six months ended June 30, 2015 Net cash used for investing activities $ (372,469 ) 280,505 (91,964 ) Net cash provided (used) by financing activities 251,698 (280,505 ) (28,807 ) |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | 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 transfered 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 |
Schedule of Business Acquisitions, by Acquisition | The impact of the AWN NCI Acquisition is summarized in the following table (amounts in thousands): Reduction of non-controlling interest $ 268,364 Additional paid-in capital 35,467 Fair value of consideration paid for acquisition of equity interest $ 303,831 |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Earnings (loss) per common share (“EPS”) and common shares used to calculate basic and diluted EPS consist of the following (amounts in thousands, except per share amounts): Three Months Ended September 30, 2015 2014 Class A Class B Class A Class B Basic net income per share: Numerator: Net income available to common stockholders $ 16,213 1,418 $ 9,161 754 Less: Undistributed income allocable to participating securities (920 ) — (526 ) — Undistributed income allocable to common stockholders 15,293 1,418 8,635 754 Denominator: Weighted average common shares outstanding 34,031 3,155 36,220 3,162 Basic net income attributable to GCI common stockholders per common share $ 0.45 0.45 $ 0.24 0.24 Three Months Ended September 30, 2015 2014 Class A Class B Class A Class B Diluted net income per share: Numerator: Undistributed income allocable to common stockholders for basic computation $ 15,293 1,418 $ 8,635 754 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,418 — 754 — Reallocation of undistributed earnings as a result of conversion of dilutive securities 22 (34 ) 2 (3 ) Effect of derivative instruments that may be settled in cash or shares (18 ) — — — Effect of share based compensation that may be settled in cash or shares 4 — (3 ) — Net income adjusted for allocation of undistributed earnings and effect of contracts that may be settled in cash or shares $ 16,719 1,384 $ 9,388 751 Denominator: Number of shares used in basic computation 34,031 3,155 36,220 3,162 Conversion of Class B to Class A common shares outstanding 3,155 — 3,162 — Unexercised stock options 122 — 120 — Effect of derivative instruments that may be settled in cash or shares 781 — — — Effect of share based compensation that may be settled in cash or shares 26 — 26 — Number of shares used in per share computation 38,115 3,155 39,528 3,162 Diluted net income attributable to GCI common stockholders per common share $ 0.44 0.44 $ 0.24 0.24 Nine Months Ended September 30, 2015 2015 2014 Class A Class B Class A Class B Basic net income (loss) per share: Numerator: Net income (loss) available to common stockholders $ (15,838 ) (1,427 ) $ 15,686 1,296 Less: Undistributed income allocable to participating securities — — (868 ) — Undistributed income (loss) allocable to common stockholders (15,838 ) (1,427 ) 14,818 1,296 Denominator: Weighted average common shares outstanding 35,037 3,158 36,149 3,162 Basic net income (loss) attributable to GCI common stockholders per common share $ (0.45 ) (0.45 ) $ 0.41 0.41 Nine Months Ended September 30, 2015 2015 2014 Class A Class B Class A Class B Diluted net income (loss) per share: Numerator: Undistributed income (loss) allocable to common stockholders for basic computation $ (15,838 ) (1,427 ) $ 14,818 1,296 Reallocation of undistributed earnings (loss) as a result of conversion of Class B to Class A shares (1,427 ) — 1,296 — Reallocation of undistributed earnings as a result of conversion of dilutive securities — — 3 (5 ) Effect of share based compensation that may be settled in cash or shares — — (4 ) — Net income (loss) adjusted for allocation of undistributed earnings and effect of contracts that may be settled in cash or shares $ (17,265 ) (1,427 ) $ 16,113 1,291 Denominator: Number of shares used in basic computation 35,037 3,158 36,149 3,162 Conversion of Class B to Class A common shares outstanding 3,158 — 3,162 — Unexercised stock options — — 120 — Effect of share based compensation that may be settled in cash or shares — — 26 — Number of shares used in per share computation 38,195 3,158 39,457 3,162 Diluted net income (loss) attributable to GCI common stockholders per common share $ (0.45 ) (0.45 ) $ 0.41 0.41 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Weighted average shares associated with outstanding securities for the three and nine months ended September 30, 2015 and 2014 , which have been excluded from the computations of diluted EPS, because the effect of including these securities would have been anti-dilutive, consist of the following (shares, in thousands): Three Months Ended Nine Months Ended September 30, 2015 2014 2015 2014 Derivative instruments that may be settled in cash or shares, the effect of which is anti-dilutive — — 595 — Shares associated with anti-dilutive unexercised stock options — 28 120 30 Share-based compensation that may be settled in cash or shares, the effect of which is anti-dilutive — — 26 — Total excluded — 28 741 30 |
Schedule of Stock by Class | Following are the changes in issued common stock for the nine months ended September 30, 2015 and 2014 (shares, in thousands): Class A Class B Balances at December 31, 2013 37,299 3,165 Class B shares converted to Class A 3 (3 ) Shares issued upon stock option exercises 40 — Share awards issued 1,186 — Shares retired (148 ) — Shares acquired to settle minimum statutory tax withholding requirements (37 ) — Balances at September 30, 2014 38,343 3,162 Balances at December 31, 2014 37,998 3,159 Class B shares converted to Class A 5 (5 ) Shares issued upon stock option exercises 38 — Share awards issued 647 — Shares retired (2,761 ) Shares acquired to settle minimum statutory tax withholding requirements (77 ) — Balances at September 30, 2015 35,850 3,154 |
Excise And Sales Taxes | The following are certain surcharges reported on a gross basis in our Consolidated Statements of Operations (amounts in thousands): Three Months Ended Nine Months Ended September 30, 2015 2014 2015 2014 Surcharges reported gross $ 1,426 990 3,960 3,224 |
Consolidated Statements of Ca19
Consolidated Statements of Cash Flows Supplemental Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Operating Capital | Changes in operating assets and liabilities consist of (amounts in thousands): Nine Months Ended September 30, 2015 2014 Decrease in accounts receivable, net $ 16,916 5,185 Increase in prepaid expenses (813 ) (3,278 ) Decrease in inventories 6,957 2,449 Decrease in other current assets 17 135 Increase in other assets (7,886 ) (511 ) Decrease in accounts payable (8,095 ) (2,365 ) Increase in deferred revenues 1,532 4,198 Decrease in accrued payroll and payroll related obligations (3,783 ) (246 ) Increase (decrease) in accrued liabilities 2,505 (722 ) Increase in accrued interest 20,035 14,205 Decrease in subscriber deposits (590 ) (160 ) Decrease in long-term deferred revenue (6,437 ) (3,108 ) Increase in components of other long-term liabilities 230 1,185 Total change in operating assets and liabilities $ 20,588 16,967 |
Cash Payments for Interest | The following item is for the nine months ended September 30, 2015 and 2014 (amounts in thousands): Net cash paid or received: 2015 2014 Interest paid including capitalized interest $ 43,195 41,396 |
Schedule of Other Significant Noncash Transactions | The following items are non-cash investing and financing activities for the nine months ended September 30, 2015 and 2014 (amounts in thousands): 2015 2014 Non-cash consideration for Wireless Acquisition $ 23,326 — Non-cash additions for purchases of property and equipment $ 17,683 36,805 Asset retirement obligation additions to property and equipment $ 1,730 382 Net capital lease obligation $ — 9,386 Distribution to non-controlling interest $ — 4,167 Deferred compensation distribution denominated in shares $ — 617 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Amortization Expense | Amortization expense for amortizable intangible assets was as follows (amounts in thousands): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Amortization expense $ 2,701 2,382 $ 7,919 $ 6,981 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense for amortizable intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in thousands): Years Ending December 31, 2015 $ 10,636 2016 $ 8,957 2017 $ 6,653 2018 $ 4,733 2019 $ 3,660 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Instrument Redemption | At any time on or after April 15, 2020, the 2025 Notes are redeemable at our option, in whole or in part, on not less than thirty nor more than sixty days’ notice, at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest (if any) to the date of redemption: If redeemed during the twelve month period commencing April 15 of the year indicated: Redemption Price 2020 103.438 % 2021 102.292 % 2022 101.146 % 2023 and thereafter 100.000 % |
Fair Value Measurements and D22
Fair Value Measurements and Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets And Liabilities Measured On Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 are as follows (amounts in thousands): September 30, 2015 Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Deferred compensation plan assets (mutual funds) $ 1,660 — — 1,660 Liabilities: Derivative stock appreciation rights $ — — 26,700 26,700 December 31, 2014 Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Deferred compensation plan assets (mutual funds) $ 2,068 — — 2,068 (1) Quoted prices in active markets for identical assets or liabilities (2) Observable inputs other than quoted prices in active markets for identical assets and liabilities (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 September 30, 2015 and December 31, 2014 are as follows (amounts in thousands): September 30, December 31, Carrying Amount Fair Value Carrying Amount Fair Value Current and long-term debt $ 1,348,448 1,380,691 1,036,678 1,055,952 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in fair value of all financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2015 : Fair Value Measurement Using Level 3 Inputs Derivative Stock Appreciation Rights Balance at January 1, 2015 $ — Issuance 21,660 Fair value adjustment at end of period, included in Other Income (Expense) 5,040 Balance at September 30, 2015 $ 26,700 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Option Activity | A summary of option activity under the Stock Option Plan as of September 30, 2015 and changes during the period then ended is presented below: Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 308 $ 6.86 Exercised (38 ) $ 7.77 Expired (2 ) $ 7.63 Outstanding at September 30, 2015 268 $ 6.73 3.4 years $ 2,828 Exercisable at September 30, 2015 268 $ 6.73 3.4 years $ 2,828 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of nonvested restricted stock award activity under the Stock Option Plan as of September 30, 2015 and changes during the period then ended is presented below: Shares (in thousands) Weighted Average Grant Date Fair Value Nonvested at January 1, 2015 1,744 $ 9.11 Granted 647 $ 14.70 Vested (342 ) $ 10.27 Forfeited (7 ) $ 12.54 Nonvested at September 30, 2015 2,042 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summarized financial information for our reportable segments for the three and nine months ended September 30, 2015 and 2014 follows (amounts in thousands): Three Months Ended Nine Months Ended Wireless Wireline Total Reportable Segments Wireless Wireline Total Reportable Segments September 30, 2015 Revenues $ 80,424 178,149 258,573 $ 207,568 529,622 737,190 Adjusted EBITDA $ 57,404 39,122 96,526 $ 140,518 119,312 259,830 September 30, 2014 Revenues $ 76,398 164,327 240,725 $ 208,312 473,095 681,407 Adjusted EBITDA $ 47,279 45,915 93,194 $ 125,475 126,987 252,462 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of reportable segment Adjusted EBITDA to consolidated income (loss) before income taxes follows (amounts in thousands): Three Months Ended September 30, Nine Months Ended 2015 2014 2015 2014 Reportable segment Adjusted EBITDA $ 96,526 93,194 $ 259,830 252,462 Less depreciation and amortization expense (45,157 ) (41,705 ) (135,563 ) (127,843 ) Less software impairment charge (2,571 ) — (29,839 ) — Less share-based compensation expense (2,660 ) (2,153 ) (8,074 ) (6,124 ) Less accretion expense (191 ) (359 ) (992 ) (961 ) Other (474 ) 359 55 481 Consolidated operating income 45,473 49,336 85,417 118,015 Less other expense, net (19,856 ) (18,411 ) (107,361 ) (55,938 ) Consolidated income (loss) before income taxes $ 25,617 30,925 $ (21,944 ) 62,077 |
Business and Summary of Signi25
Business and Summary of Significant Accounting Principles (Narratives) (Details) shares in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($)shares | Sep. 30, 2015USD ($)entityshares | Sep. 30, 2014USD ($)shares | Feb. 02, 2015 | Dec. 31, 2014USD ($) | |
Business | ||||||
Year founded | 1,979 | |||||
Principles of Consolidation | ||||||
Number of VIEs | entity | 4 | |||||
Common Stock | ||||||
Stock repurchased during period, value | $ 44,324,000 | $ 1,972,000 | ||||
Accounts Receivable and Allowance for Doubtful Receivables | ||||||
Period past due for write-off of trade accounts receivable | 120 days | |||||
Revenue Recognition | ||||||
Revenues | $ 258,573,000 | $ 240,725,000 | $ 737,190,000 | 681,407,000 | ||
Receivables | 189,039,000 | 189,039,000 | $ 212,441,000 | |||
Total High Cost Support Program [Member] | ||||||
Revenue Recognition | ||||||
Revenues | 16,500,000 | $ 16,500,000 | 50,600,000 | $ 50,000,000 | ||
Receivables | 46,100,000 | $ 46,100,000 | ||||
Common Stock - Class A [Member] | ||||||
Common Stock | ||||||
Stock repurchased during period, shares | shares | 2,761 | 148 | ||||
Stock repurchased during period, value | $ 19,062,000 | $ 1,972,000 | ||||
Stock Buyback Program [Member] | ||||||
Common Stock | ||||||
Authorized amount, repurchase of stock | 5,000,000 | |||||
Stock repurchase program, remaining value authorized to be repurchased | $ 94,300,000 | $ 94,300,000 | ||||
Stock Buyback Program [Member] | Common Stock - Class A [Member] | ||||||
Common Stock | ||||||
Stock repurchased during period, shares | shares | 400 | 100 | 2,800 | 100 | ||
Stock repurchased during period, value | $ 7,300,000 | $ 1,300,000 | $ 43,200,000 | $ 1,300,000 | ||
ACS Wireless [Member] | ||||||
Principles of Consolidation | ||||||
Voting interests acquired | 33.33% | |||||
Interests acquired from noncontrolling interest | 66.67% |
Business and Summary of Signi26
Business and Summary of Significant Accounting Principles (Business Acquisition) (Details) $ in Thousands | Feb. 02, 2015USD ($) | Sep. 30, 2015USD ($)entity |
Noncontrolling Interest [Line Items] | ||
Total consideration transfered to ACS | $ 304,838 | |
Non-controlling interest acquisition | 303,831 | $ 305,831 |
Property and equipment | 746 | |
Other intangible assets | 261 | |
Noncontrolling Interest [Member] | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interest acquisition | 271,521 | |
Additional Paid-in Capital [Member] | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interest acquisition | 34,310 | |
Rights to Receive Future Capacity [Member] | ||
Noncontrolling Interest [Line Items] | ||
Fair value adjustment to assets | 1,200 | |
Rights to Use Capacity [Member] | ||
Noncontrolling Interest [Line Items] | ||
Impairment of intangible assets | $ 3,800 | |
ACS Wireless [Member] | ||
Noncontrolling Interest [Line Items] | ||
Consideration paid | 293,200 | |
Non-controlling interest acquisition | 303,831 | |
ACS Wireless [Member] | Noncontrolling Interest [Member] | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interest acquisition | 268,364 | |
ACS Wireless [Member] | Additional Paid-in Capital [Member] | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interest acquisition | $ 35,467 | |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Noncontrolling Interest [Line Items] | ||
Number of immaterial business acquisitions | entity | 3 | |
Cash consideration for immaterial business acquisitions | $ 12,700 |
Business and Summary of Signi27
Business and Summary of Significant Accounting Principles (Basic EPS calculations) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Class of Stock [Line Items] | ||||
Net income (loss) available to common stockholders | $ 17,631 | $ 9,915 | $ (17,265) | $ 16,982 |
Common Stock - Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Net income (loss) available to common stockholders | 16,213 | 9,161 | (15,838) | 15,686 |
Less: Undistributed income allocable to participating securities | (920) | (526) | 0 | (868) |
Undistributed income (loss) allocable to common stockholders | $ 15,293 | $ 8,635 | $ (15,838) | $ 14,818 |
Weighted average common shares outstanding | 34,031 | 36,220 | 35,037 | 36,149 |
Basic net income (loss) attributable to GCI common stockholders per common share | $ 0.45 | $ 0.24 | $ (0.45) | $ 0.41 |
Common Stock - Class B [Member] | ||||
Class of Stock [Line Items] | ||||
Net income (loss) available to common stockholders | $ 1,418 | $ 754 | $ (1,427) | $ 1,296 |
Less: Undistributed income allocable to participating securities | 0 | 0 | 0 | 0 |
Undistributed income (loss) allocable to common stockholders | $ 1,418 | $ 754 | $ (1,427) | $ 1,296 |
Weighted average common shares outstanding | 3,155 | 3,162 | 3,158 | 3,162 |
Basic net income (loss) attributable to GCI common stockholders per common share | $ 0.45 | $ 0.24 | $ (0.45) | $ 0.41 |
Business and Summary of Signi28
Business and Summary of Significant Accounting Principles (Diluted EPS calculations) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Common Stock - Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Undistributed income (loss) allocable to common stockholders for basic computation | $ 15,293 | $ 8,635 | $ (15,838) | $ 14,818 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 1,418 | 754 | (1,427) | 1,296 |
Reallocation of undistributed earnings as a result of conversion of dilutive securities | 22 | 2 | 0 | 3 |
Effect of derivative instruments that may be settled in cash or shares | (18) | 0 | ||
Effect of share based compensation that may be settled in cash or shares | 4 | (3) | 0 | (4) |
Net income (loss) adjusted for allocation of undistributed earnings and effect of contracts that may be settled in cash or shares | $ 16,719 | $ 9,388 | $ (17,265) | $ 16,113 |
Number of shares used in basic computation | 34,031 | 36,220 | 35,037 | 36,149 |
Conversion of Class B to Class A common shares outstanding | 3,155 | 3,162 | 3,158 | 3,162 |
Unexercised stock options | 122 | 120 | 0 | 120 |
Effect of derivative instruments that may be settled in cash or shares | 781 | 0 | ||
Effect of share based compensation that may be settled in cash or shares | 26 | 26 | 0 | 26 |
Number of shares used in per share computation | 38,115 | 39,528 | 38,195 | 39,457 |
Diluted net income (loss) attributable to GCI common stockholders per common share | $ 0.44 | $ 0.24 | $ (0.45) | $ 0.41 |
Common Stock - Class B [Member] | ||||
Class of Stock [Line Items] | ||||
Undistributed income (loss) allocable to common stockholders for basic computation | $ 1,418 | $ 754 | $ (1,427) | $ 1,296 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 | 0 |
Reallocation of undistributed earnings as a result of conversion of dilutive securities | (34) | (3) | 0 | (5) |
Effect of derivative instruments that may be settled in cash or shares | 0 | 0 | ||
Effect of share based compensation that may be settled in cash or shares | 0 | 0 | 0 | 0 |
Net income (loss) adjusted for allocation of undistributed earnings and effect of contracts that may be settled in cash or shares | $ 1,384 | $ 751 | $ (1,427) | $ 1,291 |
Number of shares used in basic computation | 3,155 | 3,162 | 3,158 | 3,162 |
Conversion of Class B to Class A common shares outstanding | 0 | 0 | 0 | 0 |
Unexercised stock options | 0 | 0 | 0 | 0 |
Effect of derivative instruments that may be settled in cash or shares | 0 | 0 | ||
Effect of share based compensation that may be settled in cash or shares | 0 | 0 | 0 | 0 |
Number of shares used in per share computation | 3,155 | 3,162 | 3,158 | 3,162 |
Diluted net income (loss) attributable to GCI common stockholders per common share | $ 0.44 | $ 0.24 | $ (0.45) | $ 0.41 |
Business and Summary of Signi29
Business and Summary of Significant Accounting Principles (Weighted Average Shares outstanding which are anti-dilutive) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Class of Stock [Line Items] | ||||
Shares associated with anti-dilutive securities | 0 | 28 | 741 | 30 |
Derivative instruments that may be settled in cash or shares, the effect of which is anti-dilutive | ||||
Class of Stock [Line Items] | ||||
Shares associated with anti-dilutive securities | 0 | 0 | 595 | 0 |
Shares associated with anti-dilutive unexercised stock options | ||||
Class of Stock [Line Items] | ||||
Shares associated with anti-dilutive securities | 0 | 28 | 120 | 30 |
Share-based compensation that may be settled in cash or shares, the effect of which is anti-dilutive | ||||
Class of Stock [Line Items] | ||||
Shares associated with anti-dilutive securities | 0 | 0 | 26 | 0 |
Business and Summary of Signi30
Business and Summary of Significant Accounting Principles (Changes in issued Common Stock) (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Common Stock [Roll Forward] | ||
Shares issued upon stock option exercises | 38 | |
Common Stock - Class A [Member] | ||
Common Stock [Roll Forward] | ||
Balance, Beginning | 37,998 | 37,299 |
Class B shares converted to Class A | 5 | 3 |
Shares issued upon stock option exercises | 38 | 40 |
Share awards issued | 647 | 1,186 |
Shares retired | (2,761) | (148) |
Shares acquired to settle minimum statutory tax withholding requirements | (77) | (37) |
Balance, Ending | 35,850 | 38,343 |
Common Stock - Class B [Member] | ||
Common Stock [Roll Forward] | ||
Balance, Beginning | 3,159 | 3,165 |
Class B shares converted to Class A | (5) | (3) |
Shares issued upon stock option exercises | 0 | 0 |
Share awards issued | 0 | 0 |
Shares retired | 0 | |
Shares acquired to settle minimum statutory tax withholding requirements | 0 | 0 |
Balance, Ending | 3,154 | 3,162 |
Business and Summary of Signi31
Business and Summary of Significant Accounting Principles (Surcharges reported gross) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Surcharges reported gross | $ 1,426 | $ 990 | $ 3,960 | $ 3,224 |
Business and Summary of Signi32
Business and Summary of Significant Accounting Principles (Immaterial Error Correction) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net cash used for investing activities | $ (48,177) | $ (91,964) | $ (140,642) | $ (148,629) |
Net cash provided (used) by financing activities | 865 | (28,807) | $ (41,581) | $ (81,095) |
Scenario, Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net cash used for investing activities | (328,682) | (372,469) | ||
Net cash provided (used) by financing activities | 281,370 | 251,698 | ||
Restatement Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net cash used for investing activities | 280,505 | 280,505 | ||
Net cash provided (used) by financing activities | $ (280,505) | $ (280,505) |
Consolidated Statements of Ca33
Consolidated Statements of Cash Flows Supplemental Disclosures (Changes in operating assets and liabilities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
Decrease in accounts receivable, net | $ 16,916 | $ 5,185 |
Increase in prepaid expenses | (813) | (3,278) |
Decrease in inventories | 6,957 | 2,449 |
Decrease in other current assets | 17 | 135 |
Increase in other assets | (7,886) | (511) |
Decrease in accounts payable | (8,095) | (2,365) |
Increase in deferred revenues | 1,532 | 4,198 |
Decrease in accrued payroll and payroll related obligations | (3,783) | (246) |
Increase (decrease) in accrued liabilities | 2,505 | (722) |
Increase in accrued interest | 20,035 | 14,205 |
Decrease in subscriber deposits | (590) | (160) |
Decrease in long-term deferred revenue | (6,437) | (3,108) |
Increase in components of other long-term liabilities | 230 | 1,185 |
Total change in operating assets and liabilities | $ 20,588 | $ 16,967 |
Consolidated Statements of Ca34
Consolidated Statements of Cash Flows Supplemental Disclosures (Net cash paid or received) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid including capitalized interest | $ 43,195 | $ 41,396 |
Consolidated Statements of Ca35
Consolidated Statements of Cash Flows Supplemental Disclosures (Non-cash investing and financing activities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
Non-cash consideration for Wireless Acquisition | $ 23,326 | $ 0 |
Non-cash additions for purchases of property and equipment | 17,683 | 36,805 |
Asset retirement obligation additions to property and equipment | 1,730 | 382 |
Net capital lease obligation | 0 | 9,386 |
Distribution to non-controlling interest | 0 | 4,167 |
Deferred compensation distribution denominated in shares | $ 0 | $ 617 |
Intangible Assets (Amortization
Intangible Assets (Amortization expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 2,701 | $ 2,382 | $ 7,919 | $ 6,981 |
Intangible Assets (5 year Futur
Intangible Assets (5 year Future Amortization ) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
2,015 | $ 10,636 |
2,016 | 8,957 |
2,017 | 6,653 |
2,018 | 4,733 |
2,019 | $ 3,660 |
Intangible Assets and Goodwil38
Intangible Assets and Goodwill Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Increase in goodwill | $ 9.5 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Apr. 01, 2015 | Feb. 02, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Debt Instrument [Line Items] | ||||||
Loan fees and other expenses | $ 13,979,000 | $ 0 | ||||
Loss on extinguishment of debt | $ 0 | $ 0 | 27,700,000 | 0 | ||
Payment of debt call premiums | $ 20,244,000 | $ 0 | ||||
Medium-term Notes [Member] | Amended Senior Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt face amount | $ 275,000,000 | |||||
Percentage of principal payable | 0.25% | |||||
Loan fees and other expenses | $ 6,200,000 | |||||
Medium-term Notes [Member] | Amended Senior Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Spread on variable rate | 3.25% | |||||
Interest rate floor | 0.75% | |||||
Unsecured Debt [Member] | Searchlight ALX, LP Promissory Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt face amount | $ 75,000,000 | |||||
Debt stated percentage | 7.50% | |||||
Redemption price (percentage) | 50.00% | |||||
Debt issuance price, percent | 100.00% | |||||
Unamortized discount | $ 21,700,000 | |||||
Senior Notes [Member] | Senior Notes 6.875 Percent due 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt face amount | $ 450,000,000 | |||||
Debt stated percentage | 6.875% | |||||
Debt issuance price, percent | 99.105% | |||||
Repayments of debt | $ 425,000,000 | |||||
Purchase price of debt in occurance of change of control, percentage of principal amount | 101.00% | |||||
Purchase price in event of an asset sale, percentage of principal | 100.00% | |||||
Issuance cost | $ 7,900,000 | |||||
Senior Notes [Member] | Senior Notes Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt stated percentage | 6.75% | |||||
Senior Notes [Member] | Senior Notes Due 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 27,700,000 | |||||
Payment of debt call premiums | 20,200,000 | |||||
Write off of deferred debt issuance costs | 5,400,000 | |||||
Write off of debt discount | $ 2,100,000 | |||||
Common Stock - Class A [Member] | Stock Appreciation Rights (SARs) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stock Appreciation Rights | 3,000,000 | |||||
Stock Appreciation Rights issued for interest capitalization (percent) | 4.00% | |||||
Exercise price of stock appreciation rights (per share) | $ 13 | |||||
Common Stock - Class A [Member] | Stock Appreciation Rights (SARs) [Member] | Searchlight ALX, LP Promissory Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stock Appreciation Rights | 3,000,000 | |||||
Exercise price of stock appreciation rights (per share) | $ 13 |
Long-Term Debt (Schedule of Red
Long-Term Debt (Schedule of Redemption Price) (Details) - Senior Notes [Member] - Senior Notes 6.875 Percent due 2025 [Member] | 9 Months Ended |
Sep. 30, 2015 | |
Debt Instrument, Redemption, Period One [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price (percentage) | 103.438% |
Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price (percentage) | 102.292% |
Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price (percentage) | 101.146% |
Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price (percentage) | 100.00% |
Fair Value Measurements and D41
Fair Value Measurements and Derivative Instruments (Assets measured at fair value on a recurring basics) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (mutual funds) | $ 1,660 | $ 2,068 |
Derivative stock appreciation rights | 26,700 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (mutual funds) | 1,660 | 2,068 |
Derivative stock appreciation rights | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (mutual funds) | 0 | 0 |
Derivative stock appreciation rights | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (mutual funds) | 0 | $ 0 |
Derivative stock appreciation rights | $ 26,700 |
Fair Value Measurements and D42
Fair Value Measurements and Derivative Instruments (Carrying amounts and fair value of the financial instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Senior Notes Due 2021 | Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt stated percentage | 6.75% | |
Senior Notes Due 2025 | Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt stated percentage | 6.875% | |
Fair Value [Member] | ||
Debt Instrument [Line Items] | ||
Current and long-term debt | $ 1,380,691 | $ 1,055,952 |
Carrying Value [Member] | ||
Debt Instrument [Line Items] | ||
Current and long-term debt | $ 1,348,448 | $ 1,036,678 |
Fair Value Measurements and D43
Fair Value Measurements and Derivative Instruments Fair Value Measurements and Derivative Instruments (Derivative Financial Instruments) (Details) - USD ($) | Feb. 02, 2015 | Sep. 30, 2015 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Stock Appreciation Rights, Expiration Date | 8 years | |
Unsecured Debt [Member] | Searchlight ALX, LP Promissory Note [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt face amount | $ 75,000,000 | |
Stock Appreciation Rights (SARs) [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value measurement with unobservable inputs, beginning balance | $ 0 | |
Issuance | 21,660,000 | |
Fair value adjustment at end of period, included in Other Income (Expense) | 5,040,000 | |
Fair value measurement with unobservable inputs, ending balance | $ 26,700,000 | |
Stock Appreciation Rights (SARs) [Member] | Common Stock - Class A [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Stock Appreciation Rights | 3,000,000 | |
Exercise price of stock appreciation rights (per share) | $ 13 | |
Stock Appreciation Rights (SARs) [Member] | Common Stock - Class A [Member] | Searchlight ALX, LP Promissory Note [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Stock Appreciation Rights | 3,000,000 | |
Exercise price of stock appreciation rights (per share) | $ 13 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narratives) (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 1,800,000 | |
Weighted average grant date fair value (USD per share) | $ 14.70 | $ 9.89 |
Share-based compensation expense | $ 8 | $ 6.1 |
Unexercised Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years | |
Expiration period | 10 years | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Unrecognized share-based compensation expense | $ 10.8 | |
Unvested restricted stock awards | 2,000,000 | |
Weighted average period for recognition of unvested shares | 1 year 7 months | |
Common Stock - Class A [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 15,700,000 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Shares | |
Beginning balance (shares) | 308 |
Exercised (shares) | (38) |
Expired (USD per share) | (2) |
Ending balance (shares) | 268 |
Exercisable (shares) | 268 |
Weighted Average Exercise Price | |
Beginning balance (USD per share) | $ / shares | $ 6.86 |
Exercised (USD per share) | $ / shares | 7.77 |
Expired (USD per share) | $ / shares | 7.63 |
Ending balance (USD per share) | $ / shares | 6.73 |
Exercisable (USD per share) | $ / shares | $ 6.73 |
Weighted average remaining contractual term, outstanding | 3 years 5 months 10 days |
Weighted average remaining contractual term, exercisable | 3 years 5 months 10 days |
Aggregate intrinsic value, outstanding | $ | $ 2,828 |
Aggregate intrinsic value, exercisable | $ | $ 2,828 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of nonvested restricted stock award activity) (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Shares (in thousands) | |
Nonvested beginning balance (shares) | 1,744 |
Granted (shares) | 647 |
Vested (shares) | (342) |
Forfeited (shares) | (7) |
Nonvested ending balance (shares) | 2,042 |
Weighted Average Grant Date Fair Value | |
Nonvested, Beginning (USD per share) | $ / shares | $ 9.11 |
Granted (USD per share) | $ / shares | 14.70 |
Vested (USD per share) | $ / shares | 10.27 |
Forfeited (USD per share) | $ / shares | $ 12.54 |
Segments Narrative (Details)
Segments Narrative (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Fiber optic cable systems [Member] | |
Segment Reporting Information [Line Items] | |
Percentage of long-lived assets not in USA | 82.00% |
Segments (Reportable segment re
Segments (Reportable segment revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 258,573 | $ 240,725 | $ 737,190 | $ 681,407 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 258,573 | 240,725 | 737,190 | 681,407 |
Adjusted EBITDA | 96,526 | 93,194 | 259,830 | 252,462 |
Operating Segments [Member] | Wireless [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 80,424 | 76,398 | 207,568 | 208,312 |
Adjusted EBITDA | 57,404 | 47,279 | 140,518 | 125,475 |
Operating Segments [Member] | Wireline [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 178,149 | 164,327 | 529,622 | 473,095 |
Adjusted EBITDA | $ 39,122 | $ 45,915 | $ 119,312 | $ 126,987 |
Segments (Reconciliation of rep
Segments (Reconciliation of reportable segment adjusted EBITDA) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Less depreciation and amortization expense | $ (45,157) | $ (41,705) | $ (135,563) | $ (127,843) |
Less software impairment charge | (2,571) | 0 | (29,839) | 0 |
Less share-based compensation expense | (8,074) | (6,124) | ||
Consolidated operating income | 45,473 | 49,336 | 85,417 | 118,015 |
Less other expense, net | (19,856) | (18,411) | (107,361) | (55,938) |
Consolidated income (loss) before income taxes | 25,617 | 30,925 | (21,944) | 62,077 |
Segment Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment Adjusted EBITDA | 96,526 | 93,194 | 259,830 | 252,462 |
Less depreciation and amortization expense | (45,157) | (41,705) | (135,563) | (127,843) |
Less software impairment charge | (2,571) | 0 | (29,839) | 0 |
Less share-based compensation expense | (2,660) | (2,153) | (8,074) | (6,124) |
Less accretion expense | (191) | (359) | (992) | (961) |
Other | $ (474) | $ 359 | $ 55 | $ 481 |
Related Party Transaction (Deta
Related Party Transaction (Details) - ACS [Member] - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Feb. 02, 2015 | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | ||
Payments to related party | $ 6.2 | $ 48.2 |
Receipts from Related Parties | $ 8.1 | $ 29.5 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) | Dec. 11, 2012 | Oct. 03, 2012 | Aug. 30, 2011 | Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | |||||||||
Impairment of equity method investment | $ 0 | $ 0 | $ 12,593,000 | $ 0 | |||||
Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Project fund | $ 59,300,000 | ||||||||
Tax credit percentage | 39.00% | ||||||||
Percentage of recapture | 100.00% | ||||||||
Recapture period | 7 years | ||||||||
Assets | 140,900,000 | $ 140,900,000 | $ 140,900,000 | ||||||
Liabilities | $ 104,200,000 | $ 104,200,000 | $ 104,200,000 | ||||||
NMTC 1 [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Project fund | $ 58,300,000 | ||||||||
Interest rate percentage | 1.00% | ||||||||
NMTC 1 [Member] | Minimum [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Interest rate percentage | 1.00% | ||||||||
NMTC 1 [Member] | Maximum [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Interest rate percentage | 3.96% | ||||||||
NMTC 2 [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Project fund | $ 37,700,000 | ||||||||
Interest rate percentage | 1.00% | ||||||||
NMTC 2 [Member] | Minimum [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Interest rate percentage | 0.7099% | ||||||||
NMTC 2 [Member] | Maximum [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Interest rate percentage | 0.7693% | ||||||||
NMTC 3 [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Project fund | $ 8,200,000 | ||||||||
Interest rate percentage | 1.00% | ||||||||
NMTC 3 [Member] | Maximum [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Interest rate percentage | 1.35% | ||||||||
US Bancorp [Member] | NMTC 1 [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Amount to other entity | $ 22,400,000 | ||||||||
US Bancorp [Member] | NMTC 2 [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Amount to other entity | $ 17,500,000 | ||||||||
US Bancorp [Member] | NMTC 3 [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Amount to other entity | $ 3,800,000 | ||||||||
Community Development Entities [Member] | NMTC 1 [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Amount to other entity | $ 76,800,000 | ||||||||
Community Development Entities [Member] | NMTC 2 [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Amount to other entity | $ 55,200,000 | ||||||||
Community Development Entities [Member] | NMTC 3 [Member] | Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Amount to other entity | $ 12,000,000 | ||||||||
Next Generation Carrier-Class Communications Services Firm [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Ownership percentage | 40.80% | 40.80% | |||||||
Fair value of equity method investment | $ 0 | $ 0 | |||||||
Impairment of equity method investment | 12,600,000 | 12,600,000 | |||||||
Next Generation Carrier-Class Communications Services Firm [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Project fund | $ 3,000,000 | ||||||||
Other Current Assets [Member] | Next Generation Carrier-Class Communications Services Firm [Member] | |||||||||
Variable Interest Entity [Line Items] | |||||||||
Notes receivable | $ 3,000,000 | $ 3,000,000 |
Software Impairment (Details)
Software Impairment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Software impairment charge | $ 2,571,000 | $ 0 | $ 29,839,000 | $ 0 |
Wireless, Internet, Video, Local Service, and Long Distance Customer Billing Systems [Member] | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Fair Value of Future Capital Expenditures | 0 | 0 | ||
Software impairment charge | 20,700,000 | |||
Internally Developed Machine-To-Machine Billing System [Member] | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Software impairment charge | 500,000 | 7,100,000 | ||
User Management Software [Member] | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Software impairment charge | $ 1,000,000 | $ 1,000,000 |