Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 2017 | |
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Entity Registrant Name | GCI LIBERTY, INC. | ||
Entity Central Index Key | 808,461 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 533,981,114 | ||
Class A-1 Common Stock | |||
Entity Common Stock Shares Outstanding | 32,848,000 | ||
Class B-1 Common Stock | |||
Entity Common Stock Shares Outstanding | 3,047,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 15,622 | $ 19,297 |
Receivables | 188,580 | 184,296 |
Less allowance for doubtful receivables | 3,992 | 4,407 |
Net receivables | 184,588 | 179,889 |
Prepaid expenses | 21,206 | 18,599 |
Inventories | 12,996 | 11,945 |
Other current assets | 71 | 167 |
Total current assets | 234,483 | 229,897 |
Property and equipment | 2,754,667 | 2,614,875 |
Less accumulated depreciation | 1,599,956 | 1,452,957 |
Net property and equipment | 1,154,711 | 1,161,918 |
Goodwill | 242,264 | 239,263 |
Cable certificates | 191,635 | 191,635 |
Wireless licenses | 93,753 | 92,347 |
Other intangible assets, net of amortization | 75,697 | 74,444 |
Other assets | 100,957 | 76,435 |
Total other assets | 704,306 | 674,124 |
Total assets | 2,093,500 | 2,065,939 |
Current liabilities: | ||
Current maturities of obligations under long-term debt, capital leases, and tower obligations | 13,972 | 13,229 |
Accounts payable | 54,073 | 72,937 |
Deferred revenue | 38,047 | 37,618 |
Accrued payroll and payroll related obligations | 32,044 | 30,305 |
Accrued liabilities | 14,147 | 14,729 |
Accrued interest (including $5,132 to a related party at December 31, 2017 and 2016) | 13,975 | 13,926 |
Subscriber deposits | 1,271 | 917 |
Total current liabilities | 167,529 | 183,661 |
Long-term debt, net (including $58,731 and $56,640 due to a related party at December 31, 2017 and 2016, respectively) | 1,379,059 | 1,333,446 |
Obligations under capital leases, excluding current maturities (including $1,702 and $1,769 due to a related party at December 31, 2017 and 2016, respectively) | 40,288 | 50,316 |
Long-term deferred revenue | 138,022 | 135,877 |
Tower obligations | 93,606 | 87,653 |
Deferred income taxes | 90,571 | 137,982 |
Derivative stock appreciation rights with related party | 78,330 | 29,700 |
Other liabilities | 60,093 | 54,056 |
Total liabilities | 2,047,498 | 2,012,691 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Paid-in capital | 19,133 | 3,237 |
Retained earnings (deficit) | (12,296) | 17,068 |
Total GCI Liberty, Inc. stockholders' equity | 9,166 | 22,719 |
Non-controlling interests | 36,836 | 30,529 |
Total stockholders’ equity | 46,002 | 53,248 |
Total liabilities and stockholders’ equity | 2,093,500 | 2,065,939 |
Class A-1 Common Stock | ||
Stockholders’ equity: | ||
Common stock (no par) | 0 | 0 |
Less cost of 26 Class A-1 common shares held in treasury at December 31, 2017 and 2016 | (249) | (249) |
Class B-1 Common Stock | ||
Stockholders’ equity: | ||
Common stock (no par) | $ 2,578 | $ 2,663 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related party accrued interest | $ 5,132 | $ 5,132 |
Related party long-term debt | 58,731 | 56,640 |
Related party capital lease obligations, excluding current maturities | $ 1,702 | $ 1,769 |
Class A-1 Common Stock | ||
Common stock, no par value (USD per share) | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,924,000 | 32,668,000 |
Common stock, shares outstanding | 32,898,000 | 32,642,000 |
Treasury stock, shares | 26,000 | 26,000 |
Class B-1 Common Stock | ||
Common stock, no par value (USD per share) | ||
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 3,052,000 | 3,153,000 |
Common stock, shares outstanding | 3,052,000 | 3,153,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Non-related party | $ 919,204,000 | $ 933,812,000 | $ 973,251,000 |
Related party | 0 | 0 | 5,283,000 |
Total revenues | 919,204,000 | 933,812,000 | 978,534,000 |
Cost of goods sold (exclusive of depreciation and amortization shown separately below): | |||
Non-related party | 280,200,000 | 302,578,000 | 321,457,000 |
Related party | 0 | 0 | 881,000 |
Total cost of goods sold | 280,200,000 | 302,578,000 | 322,338,000 |
Selling, general and administrative expenses | |||
Non-related party | 370,639,000 | 358,356,000 | 337,839,000 |
Related party | 0 | 0 | 540,000 |
Total selling, general and administrative expenses | 370,639,000 | 358,356,000 | 338,379,000 |
Depreciation and amortization expense | 197,115,000 | 193,775,000 | 181,767,000 |
Software impairment charge | 0 | 0 | 29,839,000 |
Operating income | 71,250,000 | 79,103,000 | 106,211,000 |
Other income (expense): | |||
Interest expense (including amortization of deferred loan fees) | (83,341,000) | (78,628,000) | (78,786,000) |
Related party interest expense | (7,716,000) | (7,455,000) | (6,602,000) |
Derivative instrument unrealized income (loss) with related party | (48,630,000) | 3,120,000 | (11,160,000) |
Loss on extinguishment of debt | (649,000) | (640,000) | (27,700,000) |
Impairment of equity method investment | 0 | 0 | (12,593,000) |
Other | 2,938,000 | 5,569,000 | 2,917,000 |
Other expense, net | (137,398,000) | (78,034,000) | (133,924,000) |
Income (loss) before income taxes | (66,148,000) | 1,069,000 | (27,713,000) |
Income tax (expense) benefit | 41,426,000 | (5,205,000) | 1,847,000 |
Net loss | (24,722,000) | (4,136,000) | (25,866,000) |
Net income (loss) attributable to non-controlling interests | (476,000) | (469,000) | 159,000 |
Net loss attributable to GCI Liberty, Inc. | $ (24,246,000) | $ (3,667,000) | $ (26,025,000) |
Class A-1 Common Stock | |||
Basic net loss attributable to GCI Liberty, Inc. common stockholders per common share (USD per share) | $ (0.70) | $ (0.10) | $ (0.69) |
Diluted net loss attributable to GCI Liberty, Inc. common stockholders per common share (USD per share) | (0.70) | (0.15) | (0.69) |
Class B-1 Common Stock | |||
Basic net loss attributable to GCI Liberty, Inc. common stockholders per common share (USD per share) | (0.70) | (0.10) | (0.69) |
Diluted net loss attributable to GCI Liberty, Inc. common stockholders per common share (USD per share) | $ (0.70) | $ (0.15) | $ (0.69) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Class A-1 Common Stock | Class B-1 Common Stock | Common Stock | Common StockClass A-1 Common Stock | Common StockClass B-1 Common Stock | Class A-1 and B-1 Shares Held in Treasury | Paid-in Capital | Retained Earnings (Deficit) | Non- controlling Interests |
Beginning balances, common stock, shares at Dec. 31, 2014 | 41,157 | |||||||||
Beginning balances, total stockholders' equity at Dec. 31, 2014 | $ 467,222 | $ 13,617 | $ 2,668 | $ (249) | $ 26,773 | $ 124,547 | $ 299,866 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (25,866) | (26,025) | 159 | |||||||
Common stock repurchases and retirements, shares | (3,317) | |||||||||
Common stock repurchases and retirements | (53,774) | (34,469) | (19,305) | |||||||
Shares issued under stock option plan, shares | 219 | |||||||||
Shares issued under stock option plan | 474 | 474 | ||||||||
Issuance of restricted stock awards, shares | 688 | |||||||||
Issuance of restricted stock awards | 0 | 20,374 | (20,374) | |||||||
Share-based compensation expense | 10,744 | 10,744 | ||||||||
Distribution to non-controlling interest | (765) | (765) | ||||||||
Investment by non-controlling interest | 3,209 | 3,209 | ||||||||
Non-controlling interest acquisition | (281,803) | (10,282) | (271,521) | |||||||
Other | (180) | 4 | (4) | (230) | 50 | |||||
Ending balances, common stock, shares at Dec. 31, 2015 | 38,747 | |||||||||
Ending balances, total stockholders' equity at Dec. 31, 2015 | 119,261 | 0 | 2,664 | (249) | 6,631 | 79,217 | 30,998 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (4,136) | (3,667) | (469) | |||||||
Common stock repurchases and retirements, shares | (3,733) | |||||||||
Common stock repurchases and retirements | (58,679) | (196) | (58,483) | |||||||
Issuance of restricted stock awards, shares | 790 | |||||||||
Issuance of restricted stock awards | 0 | |||||||||
Share-based compensation expense | 11,051 | 11,051 | ||||||||
Non-controlling interest acquisition | (14,445) | (14,445) | ||||||||
Other, shares | 17 | |||||||||
Other | 196 | 196 | (1) | 1 | ||||||
Ending balances, common stock, shares at Dec. 31, 2016 | 32,668 | 3,153 | 35,821 | |||||||
Ending balances, total stockholders' equity at Dec. 31, 2016 | 53,248 | 0 | 2,663 | (249) | 3,237 | 17,068 | 30,529 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect of ASU 2016-09 adoption | 7,095 | 18 | 7,077 | |||||||
Net income (loss) | (24,722) | (24,246) | (476) | |||||||
Common stock repurchases and retirements, shares | (456) | |||||||||
Common stock repurchases and retirements | (12,293) | (13) | (12,280) | |||||||
Issuance of restricted stock awards, shares | 609 | |||||||||
Issuance of restricted stock awards | 0 | |||||||||
Share-based compensation expense | 16,939 | 16,939 | ||||||||
Conversion of Class B-1 to Class A-1 shares | 0 | (85) | 85 | |||||||
Investment by non-controlling interest | 6,783 | 6,783 | ||||||||
Non-controlling interest acquisition | (1,138) | (1,138) | ||||||||
Other, shares | 2 | |||||||||
Other | 90 | 13 | 77 | 0 | ||||||
Ending balances, common stock, shares at Dec. 31, 2017 | 32,924 | 3,052 | 35,976 | |||||||
Ending balances, total stockholders' equity at Dec. 31, 2017 | $ 46,002 | $ 0 | $ 2,578 | $ (249) | $ 19,133 | $ (12,296) | $ 36,836 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (24,722,000) | $ (4,136,000) | $ (25,866,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization expense | 197,115,000 | 193,775,000 | 181,767,000 |
Unrealized (gain) loss on derivative instrument with related party | 48,630,000 | (3,120,000) | 11,160,000 |
Deferred income tax expense (benefit) | (41,426,000) | 5,205,000 | (1,847,000) |
Share-based compensation expense | 17,453,000 | 11,043,000 | 10,902,000 |
Loss on extinguishment of debt | 649,000 | 640,000 | 27,700,000 |
Software impairment charge | 0 | 0 | 29,839,000 |
Impairment of equity method investment | 0 | 0 | 12,593,000 |
Other noncash income and expense items | 13,112,000 | 11,696,000 | 16,142,000 |
Change in operating assets and liabilities | (24,270,000) | (14,827,000) | (8,435,000) |
Net cash provided by operating activities | 186,541,000 | 200,276,000 | 253,955,000 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (189,366,000) | (194,478,000) | (176,235,000) |
Restricted cash, net | (14,532,000) | 175,000 | 65,000 |
Purchases of other assets and intangible assets | (12,952,000) | (17,486,000) | (13,955,000) |
Grant proceeds | 2,188,000 | 1,527,000 | 14,007,000 |
Proceeds from the sale of investment | 591,000 | 0 | 7,551,000 |
Purchase of businesses, net of cash received | (6,802,000) | 0 | (12,736,000) |
Purchase of KKCC assets | 0 | (19,700,000) | 0 |
Purchase of investments | 0 | (1,800,000) | 0 |
Note receivable issued to an equity method investee | 0 | 0 | (3,000,000) |
Other | 0 | 4,599,000 | (4,760,000) |
Net cash used for investing activities | (220,873,000) | (227,163,000) | (189,063,000) |
Cash flows from financing activities: | |||
Borrowing on Senior Credit Facility | 127,000,000 | 125,000,000 | 295,000,000 |
Repayment of debt, capital lease, and tower obligations | (95,122,000) | (132,205,000) | (494,982,000) |
Purchase of treasury stock to be retired | (12,293,000) | (58,679,000) | (53,774,000) |
Proceeds from Tower Transactions | 6,839,000 | 90,795,000 | 0 |
Investment by non-controlling interest | 6,783,000 | 0 | 0 |
Payment of debt issuance costs | (2,563,000) | (5,451,000) | (13,979,000) |
Issuance of 2025 Notes | 0 | 0 | 445,973,000 |
Purchase of non-controlling interests | 0 | 0 | (282,505,000) |
Issuance of Searchlight note payable and derivative stock appreciation rights with related party | 0 | 0 | 75,000,000 |
Payment of bond call premium | 0 | 0 | (20,244,000) |
Distribution to non-controlling interest | 0 | 0 | (4,932,000) |
Other | 13,000 | 196,000 | 677,000 |
Net cash provided by (used for) financing activities | 30,657,000 | 19,656,000 | (53,766,000) |
Net increase (decrease) in cash and cash equivalents | (3,675,000) | (7,231,000) | 11,126,000 |
Cash and cash equivalents at beginning of period | 19,297,000 | 26,528,000 | 15,402,000 |
Cash and cash equivalents at end of period | $ 15,622,000 | $ 19,297,000 | $ 26,528,000 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Principles | Business and Summary of Significant Accounting Principles In the following discussion, GCI Liberty, Inc. (“GCI”) and its direct and indirect subsidiaries are referred to as “we,” “us” and “our.” Prior to February 20, 2018, we were known as General Communication, Inc. On February 20, 2018, the Commissioner of the Department of Commerce, Community and Economic Development of the State of Alaska accepted for filing the amended and restated Articles of Incorporation that were approved by our shareholders at a special meeting held on February 2, 2018. The name change is a result of the Transactions described in Note 15 of this Form 10-K. Additionally, as of February 20, 2018, our Class A common stock and Class B common stock were reclassified into Class A-1 common stock and Class B-1 common stock, respectively. (a) Business GCI, an Alaska corporation, was incorporated in 1979 . We provide a full range of wireless, data, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions primarily in Alaska. (b) Basis of Presentation and Principles of Consolidation Our consolidated financial statements include the consolidated accounts of GCI 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 seven variable interest entities (“VIEs”) for which we are the primary beneficiary after providing certain loans and guarantees. These VIEs are as follows: • Terra GCI Investment Fund, LLC (“TIF”) • Terra GCI 2 Investment Fund, LLC (“TIF 2”) • Terra GCI 2-USB Investment Fund, LLC (“TIF 2-USB”) • Terra GCI 3 Investment Fund, LLC (“TIF 3”) • Twain Investment Fund 210, LLC ("TIF 4") • Terra GCI 5 Investment Fund 1, LLC ("TIF 5-1") • Terra GCI 5 Investment Fund 2, LLC ("TIF 5-2") We also include in our consolidated financial statements non-controlling interests in consolidated subsidiaries for which our ownership is less than 100 percent. All significant intercompany transactions between non-regulated affiliates of our company are eliminated. Intercompany transactions generated between regulated and non-regulated affiliates of our company are not eliminated in consolidation. (c) Non-controlling Interests Non-controlling interests represent the equity ownership interests in consolidated subsidiaries not owned by us. Non-controlling interests are adjusted for contributions, distributions, and income and loss attributable to the non-controlling interest partners of the consolidated entities. Income and loss is allocated to the non-controlling interests based on the respective governing documents. (d) Acquisitions Wireless Acquisition On February 2, 2015, we purchased Alaska Communications Systems Group, Inc.'s (“ACS”) interest in AWN ("AWN NCI Acquisition") and substantially all the assets of ACS and its affiliates related to ACS’s wireless operations (“Acquired ACS Assets”) (collectively the "Wireless Acquisition"). Under the terms of the agreement, we paid ACS $293.2 million , excluding working capital adjustments and agreed to terminate certain agreements related to the use of ACS network assets that were included as part of the original transaction that closed in July 2013. The Acquired ACS Assets included 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 accounted for the AWN NCI Acquisition as the acquisition of a non-controlling interest in accordance with Accounting Standards Codification ("ASC") 810, Consolidation, and the Acquired ACS Assets as the acquisition of assets that do not constitute a business in accordance with ASC 805-50, Business Combinations - Related Issues. Total consideration transferred to ACS in the transaction consisted of the cash payment, settlement of working capital, and the fair market value of certain rights to receive future capacity terminated as part of the Wireless Acquisition agreement. The future capacity receivable assets transferred as consideration were adjusted to fair value as of the acquisition date resulting in a gain of $1.2 million recorded in Other Income (Expense) in our Consolidated Statement of Operations for the year ended December 31, 2015. We allocated the total consideration transferred to ACS between the AWN NCI Acquisition and the Acquired ACS Assets based on the relative fair values of the assets and non-controlling interest received. The following table summarizes the allocation of total consideration transferred to ACS between the AWN NCI Acquisition and the Acquired ACS Assets excluding working capital adjustments (amounts in thousands): Total consideration transferred to ACS $ 304,838 Allocation of consideration between wireless assets and non-controlling interest acquired: AWN non-controlling interest $ 303,831 Property and equipment 746 Other intangible assets 261 Total consideration $ 304,838 We accounted for the AWN NCI Acquisition as an equity transaction, with the carrying amount of the non-controlling interest adjusted to reflect the change in ownership of AWN. The difference between the fair value of consideration paid and the total of the additional deferred taxes incurred as a result of the transaction and the carrying amount of the non-controlling interest was 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 Increase in deferred tax assets 8,445 Additional paid-in capital 27,022 Fair value of consideration paid for acquisition of equity interest $ 303,831 Pursuant to the accounting guidance in ASC 805-50, we determined that the Acquired ACS Assets did not meet the criteria necessary to constitute a business combination and was therefore accounted for as an asset purchase. We recognized the assets acquired in our Consolidated Balance Sheet at their allocated cost on the day of acquisition. The deferred tax assets and additional paid-in capital were adjusted in 2016 as a result of the reallocation of partnership tax basis as determined when preparing the 2015 federal tax return. In conjunction with the Wireless Acquisition, we amended certain agreements related to the right to use ACS network assets. We adjusted the related right to use asset to fair value as of the acquisition date resulting in a loss of $3.8 million recorded in Other Income (Expense) in our Consolidated Statement of Operations for the year ended December 31, 2015. Other Acquisitions During the year ended December 31, 2015, we completed three additional business acquisitions for total cash consideration of $12.7 million , net of cash received. We accounted for the transactions using the acquisition method of accounting under ASC 805, Business Combinations. Accordingly, the assets received, liabilities assumed and any non-controlling interests were recorded at their estimated fair value as of the acquisition date. We determined the estimated fair values using a combination of the discounted cash flows method and estimates made by management. (e) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. This standard provides guidance for the recognition, measurement and disclosure of revenue resulting from contracts with customers and will supersede virtually all of the current revenue recognition guidance under GAAP. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. In March 2016, the FASB issued ASU 2016-08, which amended the guidance in the new standard in order to clarify the principal versus agent assessment and is intended to make the guidance more operable and lead to more consistent application. In April 2016, the FASB issued ASU 2016-10, which clarifies the identification of performance obligations and the licensing implementation guidance in ASU 2014-09. In May 2016, the FASB issued ASU 2016-11, which rescinds SEC paragraphs pursuant to SEC staff announcements regarding ASU 2014-09. These rescissions include changes to topics pertaining to accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer. In May 2016, the FASB issued ASU 2016-12, which provides clarifying guidance in certain narrow areas and adds some practical expedients to ASU 2014-09. In December 2016, the FASB issued ASU 2016-20 which makes minor corrections or improvements to ASU 2014-09 that are not expected to have a significant effect on accounting practices under ASU 2014-09. In September 2017, the FASB issued ASU 2017-13 which allows certain public business entities to use the non-public business entities effective dates to adopt ASU 2014-09. In November 2017, the FASB issued ASU 2017-14 which supersedes ASC 605-10-S25-1 (Staff Accounting Bulletin ("SAB") Topic 13) as a result of SEC SAB No. 116 and adding ASC 606-10-S25-1 as a result of SEC Release No. 33-10403. The standard permits the use of either the retrospective or cumulative effect transition method. We will use the modified retrospective method to adopt this standard. We have completed our assessment of revenues earned with the exception of our roaming contracts. We are still completing our quantitative assessment of costs to obtain contracts. Upon adoption, we may recognize a cumulative increase to retained earnings of up to $33.3 million as of January 1, 2018 to adjust revenue for roaming contracts and costs to obtain contracts. We will have additional revenue recognition disclosures upon adoption of the new standard. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lease accounting by the lessor remains largely unchanged by the new standard. In January 2018, the FASB issued ASU 2018-01 which amends Topic 842 to include a practical expedient for transitioning land easements that were not previously accounted for as leases to Topic 842. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and is required to be adopted using the modified retrospective approach. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations, but we expect that adoption will have a material impact on our long-term assets and liabilities. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The update introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate consideration of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and is required to be adopted using the modified retrospective approach. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update addresses eight specific cash flow issues with the objective of reducing diversity in practice. The issues identified within the ASU include: debt prepayments or extinguishment costs; contingent consideration made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identified cash flows and application of the predominance principle. ASU 2016-15 is effective for annual and interim reporting periods beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of this guidance is not expected to have a material effect on our statement of cash flows. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This update provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. ASU 2016-08 is effective for annual and interim preporting periods beginning after December 15, 2017, and interim periods within those fiscal years. Upon adoption of this standard, we will include restricted cash with total cash in our Consolidated Statements of Cash Flows. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The update eliminates step 2 of the goodwill impairment test. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the maximum impairment being the total value of goodwill allocated to the reporting unit. ASU 2017-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The adoption of this guidance is not expected to have a material effect on our financial position or results of operations. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718) — Scope of Modification Accounting. ASU 2017-09 applies to entities that change the terms or conditions of a share-based payment award. The FASB adopted ASU 2017-09 to provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to the modification of the terms and conditions of a share-based payment award. The amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. Effective for all entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. The adoption of this guidance is not expected to have a material effect on our financial position or results of operations. (f) Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC 718, Compensation - Stock Compensation. The update includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. ASU 2016-09 requires all excess tax benefits to be recorded in income even if they have not yet been realized. ASU 2016-09 also provides an election to account for forfeitures as they occur as opposed to estimating the amount of forfeitures. We adopted ASU 2016-09 as of January 1, 2017 on a modified retrospective basis. We have elected to account for forfeitures as they occur. As a result of adoption of this standard, we have recorded a $7.1 million adjustment to Retained Earnings (Deficit) as of January 1, 2017. (g) Regulatory Accounting We account for the regulated operations of our incumbent local exchange carriers in accordance with the accounting principles for regulated enterprises. This accounting recognizes the economic effects of rate regulation by recording cost and a return on investment as such amounts are recovered through rates authorized by regulatory authorities. Accordingly, plant and equipment is depreciated over lives approved by regulators and certain costs and obligations are deferred based upon approvals received from regulators to permit recovery of such amounts in future years. Our cost studies and depreciation rates for our regulated operations are subject to periodic audits that could result in a change to recorded revenues. (h) Earnings per Common Share We compute net loss attributable to GCI per share of Class A-1 and Class B-1 common stock using the “two class” method. Therefore, basic net loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of common and dilutive common equivalent shares outstanding during the period. The computation of the dilutive net loss per share of Class A-1 common stock assumes the conversion of Class B-1 common stock to Class A-1 common stock, while the dilutive net loss per share of Class B-1 common stock does not assume the conversion of those shares. The computation of the dilutive net loss per share of Class A-1 common stock also assumes the conversion of our derivative financial instrument that may be settled in cash or shares (as described in Note 11 of this Form 10-K), shares associated with unexercised stock options and deferred compensation that may be settled in cash or shares if the effect of conversion is dilutive. 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-1 common shares, Class B-1 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-1 and Class B-1 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. (i) Common Stock We have a common stock buyback program to repurchase GCI's common stock. The cost of the repurchased common stock reduces Retained Earnings (Deficit) in our Consolidated Balance Sheets and is constructively retired when purchased. (j) Redeemable Preferred Stock We have 1,000,000 shares of preferred stock authorized with no shares issued and outstanding at years ended December 31, 2017 , 2016 and 2015 . (k) Treasury Stock We account for treasury stock purchased for general corporate purposes under the cost method and include treasury stock as a component of Stockholders’ Equity. (l) Cash Equivalents Cash equivalents consist of certificates of deposit which have an original maturity of three months or less at the date acquired and are readily convertible into cash. (m) Accounts Receivable and Allowance for Doubtful Receivables Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful receivables is our best estimate of the amount of probable credit losses in our existing accounts receivable. We base our estimates on the aging of our accounts receivable balances, financial health of specific customers, regional economic data, changes in our collections process, regulatory requirements and our customers’ compliance with Universal Service Administrative Company rules. We review our allowance for doubtful receivables methodology at least annually. Depending upon the type of account receivable our allowance is calculated using a pooled basis with an allowance for all accounts greater than 120 days past due, a pooled basis using a percentage of related accounts, or a specific identification method. When a specific identification method is used, potentially uncollectible accounts due to bankruptcy or other issues are reviewed individually for collectability. Account balances are charged off against the allowance when we feel it is probable the receivable will not be recovered. We do not have any off-balance-sheet credit exposure related to our customers. Wireless Equipment Installment Plan ("EIP") Receivables We offer new and existing wireless customers the option to participate in Upgrade Now, a program that provides eligible customers with the ability to purchase certain wireless devices in installments over a period of up to 24 months. Participating customers have the right to trade-in the original equipment for a new device after making the equivalent of 12 monthly installment payments, provided their handset is in good working condition. Upon upgrade, the outstanding balance of the EIP is exchanged for the used handset. At the time of sale, we impute interest on the receivables associated with Upgrade Now. We record the imputed interest as a reduction to the related accounts receivable. Interest income, which is included in Other Income and (Expense) in our Consolidated Statements of Operations, is recognized over the financed installment term. We assess the collectability of our EIP receivables based upon a variety of factors, including payment trends and other qualitative factors. Customers with a credit profile which carries a higher risk are required to make a down payment for equipment financed through Upgrade Now. (n) Inventories Wireless handset inventories are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. Handset costs in excess of the revenues generated from handset sales, or handset subsidies, are expensed at the time of sale. We do not recognize the expected handset subsidies prior to the time of sale because the promotional discount decision is made at the point of sale and/or because we expect to recover the handset subsidies through service revenue. Inventories of other merchandise for resale and parts are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. (o) Property and Equipment Property and equipment is stated at cost. Construction costs of facilities are capitalized. Equipment financed under a capital lease is recorded at the lower of fair market value or the present value of future minimum lease payments at inception of the lease. Construction in progress represents transmission equipment and support equipment and systems not placed in service on December 31, 2017 , that management intends to place in service during 2018. Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable, in the following ranges: Asset Category Asset Lives Telephony transmission equipment and distribution facilities 5-20 years Fiber optic cable systems 15-25 years Cable transmission equipment and distribution facilities 5-30 years Support equipment and systems 3-20 years Transportation equipment 5-13 years Property and equipment under capital leases 12-20 years Buildings 25 years Customer premise equipment 2-20 years Studio equipment 10-15 years Amortization of property and equipment under capital leases is included in Depreciation and Amortization Expense in our Consolidated Statements of Operations. Repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments are capitalized. Accumulated depreciation is removed and gains or losses are recognized at the time of sales or other dispositions of property and equipment. (p) Intangible Assets and Goodwill Goodwill, cable certificates (certificates of convenience and public necessity), wireless licenses and broadcast licenses are not amortized. Cable certificates represent certain perpetual operating rights to provide cable services. Wireless licenses represent the right to utilize certain radio frequency spectrum to provide wireless communications services. Broadcast licenses represent the right to broadcast television stations in certain areas. Goodwill represents the excess of cost over fair value of net assets acquired in connection with a business acquisition. All other amortizable intangible assets are being amortized over 2 to 20 year periods using the straight-line method. (q) Impairment of Intangibles, Goodwill, and Long-lived Assets Cable certificates, wireless licenses and broadcast licenses are treated as indefinite-lived intangible assets and are tested annually for impairment or more frequently if events and circumstances indicate that the asset might be impaired. We assessed qualitative factors (“Step Zero”) in our annual test over our cable certificate, wireless license and broadcast license assets as of October 31, 2017 and 2016 to determine if it is more likely than not that those intangible assets are impaired and require further analysis. As part of our Step Zero analysis, we considered our own economic position, estimated future growth, and geographic and industry economic outlooks. These estimates and assumptions have a significant impact on our analysis. The quantitative impairment test ("Step One") for identifiable indefinite-lived intangible assets other than goodwill consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. After an impairment loss is recognized, the adjusted carrying amount of the asset becomes its new accounting basis. This approach requires us to make estimates and assumptions including projected cash flows and discount rates. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such impairment charge. Our goodwill is tested annually for impairment, and is tested for impairment more frequently if events and circumstances indicate that the assets might be impaired. We used a Step Zero analysis for goodwill impairment as of October 31, 2017 and 2016 to determine whether it is more likely than not that goodwill is impaired. We considered qualitative factors such as our economic position, estimated future growth, geographic and industry economic outlooks, and the margin by which our fair value exceeded the book value in 2015 as a result of our Step One impairment test in 2015. These estimates and assumptions have a significant impact on our analysis. If it is determined that a goodwill impairment is more likely than not, we use the quantitative two-step process. We completed our annual goodwill and intangibles review and no impairment charge was recorded for the years ended December 31, 2017 , 2016 and 2015 . Long-lived assets, such as property, plant, and equipment, and purchased or developed intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of an asset group to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. During the year ended December 31, 2015, we recorded impairment charges related to our long-lived software assets (see Note 16 of this Form 10-K for detailed information). We recorded no impairment charges related to our long lived assets for the years ended December 31, 2017 and 2016 . (r) Amortization and Write-off of Loan Fees Debt issuance costs are deferred and amortized using the effective interest method. If a refinancing or amendment of a debt instrument is a substantial modification, all or a portion of the applicable debt issuance costs are written off. If a debt instrument is repaid prior to the maturity date we will write-off the related unamortized amount of debt issuance costs. (s) Other Assets Other Assets primarily include broadcast licenses, equity investments that are accounted for using the equity or cost method, restricted cash, long-term deposits, prepayments, long-term EIP receivables, Universal Service Fund ("USF") high cost receivables, and other long-term non-trade accounts receivable. (t) Investments We hold investments in equity method and cost method investees. Investments in equity method investees are those for which we have the ability to exercise significant influence but do not control and are not the primary beneficiary. Significant influence typically exists if we have a 20% to 50% ownership interest in the venture unless persuasive evidence to the contrary exists. Under this method of accounting, we record our proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Cash payments to equity method investees such as additional investments, loans and advances and expenses incurred on behalf of investees, as well as payments from equity method investees such as dividends, distributions and repayments of loans and advances are recorded as adjustments to investment balances. Investments in entities in which we have no control or significant influence are accounted for under the cost method. We review our investment portfolio each reporting period to determine whether there are events or circumstances that would indicate there is a decline in the fair value that would be considered other than temporary. We recorded an impairment loss of $12.6 million related to one of our equity investments during the year ended December 31, 2015 (see "Equity Method Investment" section of Note 14 of this Form 10-K for additional information). We recorded no impairment charges to equity method or cost method investments for the years ended December 31, 2017 and 2016 . (u) Asset Retirement Obligations We record the fair value of a liability for an asset retirement obligation in the period in which it is incurred in Other Liabilities on the Consolidated Balance Sheets. When the liability is initially recorded, we capitalize a cost by increasing the carrying amount of the related long-lived asset. In periods subsequent to initial measurement, changes in the liability for an asset retirement obligation resulting from revisions to either the timing or the amount of the original estimate of undiscounted cash flows are recognized. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, we either settle the obligation for its recorded amount or incur a gain or loss upon settlement. The majority of our asset retirement obligations are the estimated cost to remove telephony transmission equipment and support equipment from leased property. Following is a reconciliation of th |
Tower Sale and Leaseback
Tower Sale and Leaseback | 12 Months Ended |
Dec. 31, 2017 | |
Tower Sale and Leaseback [Abstract] | |
Tower Sale and Leaseback | Tower Sale and Leaseback In August 2016, March 2017, and July 2017, we sold to Vertical Bridge Towers II, LLC (“Vertical Bridge”) tower sites in exchange for net proceeds of $90.8 million , $3.7 million , and $3.1 million (“Tower Transaction”). The sale included, where applicable, the towers, the land on which the towers were situated if owned by us, the obligation to pay land leases, and other executory costs. We entered into a master lease agreement in which we lease back space at the tower sites for an initial term of ten years, followed by the option to renew for eight additional five year periods, for a total possible lease term of 50 years. Each lease is subject to a 2% annual increase in lease payments throughout the life of the initial lease and all subsequent lease renewals. Prior to the Tower Transaction, we had the legal obligation to remove the towers upon termination of the land lease agreements. The obligation is now reduced to the removal of our equipment from the towers. Therefore, we reduced our asset retirement obligation related to the Tower Sites by $ 3.4 million as of December 31, 2016. Per the master lease agreement, we have the right to cure land lease defaults on behalf of Vertical Bridge and have negotiated fixed rate lease renewals as described above. Due to this continuing involvement with the Tower Sites, we determined we were precluded from applying sale-leaseback accounting. We recorded long-term financial obligations (“Tower Obligations”) in the amount of the net proceeds received and recognize interest on the Tower Obligations at a rate of 7.1% using the effective interest method. The Tower Obligations are increased by interest expense and amortized through contractual leaseback payments made by us to Vertical Bridge. Our historical tower site asset costs continue to be depreciated and reported in Net Property and Equipment. The following table summarizes the impacts to the Consolidated Balance Sheets (amounts in thousands): December 31, 2017 December 31, 2016 Property and equipment, net (1) $ 19,094 $ 18,792 Tower obligations (2) $ 93,606 $ 87,653 (1) Property conveyed to Vertical Bridge as part of the Tower Transaction, but remains on our Consolidated Balance Sheets. (2) Excluding current portion and net of deferred transaction costs. Future minimum payments related to the Tower Obligations, including expected renewals and excluding deferred transaction costs, are summarized below (amounts in thousands): Years ending December 31, Total 2018 $ 7,465 2019 7,615 2020 7,767 2021 7,922 2022 8,081 2023 and thereafter 149,300 Total minimum payments 188,150 Less amount representing interest 91,978 Tower obligations $ 96,172 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows Supplemental Disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Consolidated Statements of Cash Flows Supplemental Disclosures | Consolidated Statements of Cash Flows Supplemental Disclosures Changes in operating assets and liabilities consist of (amounts in thousands): Year ended December 31, 2017 2016 2015 (Increase) decrease in accounts receivable, net $ (4,277 ) 27,453 (4,230 ) Increase in prepaid expenses (2,590 ) (6,180 ) (632 ) (Increase) decrease in inventories (1,051 ) (623 ) 5,710 (Increase) decrease in other current assets 109 (38 ) 24 Increase in other assets (10,419 ) (47,105 ) (11,491 ) Decrease in accounts payable (1,735 ) (135 ) (5,579 ) Increase in deferred revenues 429 2,446 1,743 Increase (decrease) in accrued payroll and payroll related obligations 1,579 (979 ) (1,469 ) Increase (decrease) in accrued liabilities (583 ) (8,031 ) 8,192 Increase in accrued interest 49 271 7,001 Increase (decrease) in subscriber deposits 354 (325 ) (448 ) Increase (decrease) in long-term deferred revenue (5,355 ) 18,649 (8,561 ) Increase (decrease) in components of other long-term liabilities (780 ) (230 ) 1,305 Total change in operating assets and liabilities $ (24,270 ) (14,827 ) (8,435 ) The following items are for the years ended December 31, 2017 , 2016 and 2015 (amounts in thousands): Net cash paid or received: 2017 2016 2015 Interest paid, net of amounts capitalized $ 90,998 84,546 76,796 The following items are non-cash investing and financing activities for the years ended December 31, 2017 , 2016 and 2015 (amounts in thousands): 2017 2016 2015 Non-cash additions for purchases of property and equipment $ 20,630 36,854 26,799 Asset retirement obligation additions to property and equipment $ 4,655 4,948 2,048 Non-cash consideration for KKCC assets $ — 13,993 — Non-cash consideration for Wireless Acquisition $ — — 23,326 |
Receivables and Allowance for D
Receivables and Allowance for Doubtful Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Receivables and Allowance for Doubtful Receivables | Receivables and Allowance for Doubtful Receivables Receivables consist of the following at December 31, 2017 and 2016 (amounts in thousands): 2017 2016 Trade $ 187,000 182,993 Other 1,580 1,303 Total receivables $ 188,580 184,296 As described in Note 1 of this Form 10-K we receive support from each of the various USF programs: high cost, low income, rural health care, and schools and libraries. This support was 26% , 24% , and 19% of our revenue for the years ended December 31, 2017 , 2016 and 2015 , respectively. We had USF net receivables of $131.8 million and $100.5 million at December 31, 2017 and 2016 , respectively. Changes in the allowance for doubtful receivables during the years ended December 31, 2017 , 2016 and 2015 are summarized below (amounts in thousands): Additions Deductions Description Balance at beginning of year Charged to costs and expenses Charged to other accounts Write-offs net of recoveries Balance at end of year December 31, 2017 $ 4,407 5,800 — 6,215 3,992 December 31, 2016 $ 3,630 8,516 — 7,739 4,407 December 31, 2015 $ 4,542 6,359 — 7,271 3,630 |
Net Property and Equipment
Net Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Net Property and Equipment | Net Property and Equipment Net property and equipment consists of the following at December 31, 2017 and 2016 (amounts in thousands): 2017 2016 Land and buildings $ 119,553 114,966 Telephony transmission equipment and distribution facilities 1,402,610 1,271,425 Cable transmission equipment and distribution facilities 285,665 231,539 Studio equipment 14,825 15,456 Support equipment and systems 299,511 290,209 Transportation equipment 23,468 23,674 Customer premise equipment 152,731 158,513 Fiber optic cable systems 353,291 351,460 Construction in progress 103,013 157,633 2,754,667 2,614,875 Less accumulated depreciation 1,541,264 1,385,620 Less accumulated amortization on property and equipment under capital leases 58,692 67,337 Net property and equipment $ 1,154,711 1,161,918 Gross property and equipment under capital leases $ 112,495 112,495 KKCC Asset Acquisition In November 2016, we acquired Kodiak-Kenai Cable Company, LLC ("KKCC") which through its wholly owned subsidiary owns the only low latency redundant fiber link between Anchorage, the Kenai Peninsula and Kodiak. We adopted ASU 2017-01, which allows us to treat the acquisition of KKCC as an asset acquisition. Total consideration transferred to the previous owners of KKCC consisted of a cash payment of $19.7 million and the fair market value of $14.1 million for indefeasible right-to-use capacity that we owned on the KKCC fiber system ("IRU Capacity") that was terminated as a result of the acquisition. The IRU Capacity included as consideration was adjusted to fair value as of the acquisition date resulting in a $3.1 million gain recorded in Other Income (Expense) in our Consolidated Statement of Operations for the year ended December 31, 2016. We allocated the total consideration transferred to the acquired assets and liabilities assumed based on the relative fair value. The following table summarizes the allocation of total consideration (amounts in thousands): Allocation of consideration to assets acquired and liabilities assumed: Property and equipment $ 49,794 Deferred taxes (12,211 ) Deferred revenue (3,815 ) Total consideration $ 33,768 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill As of October 31, 2017 , cable certificates, wireless licenses, broadcast licenses and goodwill were tested for impairment and we determined that these intangible assets were no t impaired at December 31, 2017 . The remaining useful lives of our cable certificates, wireless licenses, broadcast licenses and goodwill were evaluated as of October 31, 2017 , and events and circumstances continue to support an indefinite useful life. There are no indicators of impairment of our intangible assets subject to amortization as of December 31, 2017 . Other Intangible Assets subject to amortization include the following at December 31, 2017 and 2016 (amounts in thousands): 2017 2016 Software license fees $ 87,989 80,839 Rights to use 45,114 45,114 Customer relationships 4,221 1,530 Right-of-way 784 784 Trade name 252 — 138,360 128,267 Less accumulated amortization 62,663 53,823 Net other intangible assets $ 75,697 74,444 Changes in Goodwill and Other Intangible Assets are as follows (amounts in thousands): Goodwill Other Intangible Assets Balance at December 31, 2015 $ 239,263 69,290 Asset additions — 17,601 Amortization expense — (12,447 ) Balance at December 31, 2016 239,263 74,444 Additions from acquisitions 3,001 2,943 Asset additions — 11,546 Amortization expense — (13,164 ) Asset deletions — (72 ) Balance at December 31, 2017 $ 242,264 75,697 Amortization expense for definite-life intangible assets for the years ended December 31, 2017 , 2016 and 2015 follow (amounts in thousands): Years Ended December 31, 2017 2016 2015 Amortization expense $ 13,164 12,447 10,442 Amortized intangible assets are definite-life assets, and as such, we record amortization expense based on a method that most appropriately reflects our expected cash flows from these assets. Intangible assets that have finite useful lives are amortized over their useful lives using the straight-line method with a weighted-average life of 12.8 years. Amortization expense for definite-life intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in thousands): Years Ending December 31, 2018 $ 12,695 2019 $ 10,234 2020 $ 8,188 2021 $ 5,855 2022 $ 3,829 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (amounts in thousands): December 31, Issue Date Interest Rate Principal Payments Maturity Date 2017 2016 Senior Credit Facility - Term Loan B November 17, 2016 LIBOR plus 2.25% 0.25% of the original principal due quarterly February 2, 2022 1 $ 242,583 245,187 Senior Credit Facility - Term Loan A November 17, 2016 LIBOR plus applicable margin 2 Due at maturity November 17, 2021 1 215,000 215,000 Senior Credit Facility - Revolver November 17, 2016 LIBOR plus applicable margin 2 Due at maturity November 17, 2021 1 100,000 55,000 2025 Notes April 1, 2015 6.875% Due at maturity April 15, 2025 3 450,000 450,000 2021 Notes May 20, 2011 6.75% Due at maturity June 1, 2021 4 325,000 325,000 Searchlight note February 2, 2015 7.5% Due at maturity February 2, 2023 5 75,000 75,000 Wells Fargo note June 30, 2014 LIBOR plus 2.25% Monthly installments July 15, 2029 8,048 8,596 Total Debt 1,415,631 1,373,783 Less unamortized discount 19,466 21,878 Less unamortized deferred loan fees 14,117 15,133 Less current portion of long-term debt 2,989 3,326 Long-term debt, net $ 1,379,059 1,333,446 1 The Senior Credit Facility will mature on December 3, 2020 if our 2021 Notes are not refinanced prior to such date. 2 Applicable margin is based on the company’s leverage ratio and ranges from 2.00% to 3.00%. Our Senior Credit Facility Total Leverage Ratio (as defined) may not exceed 5.95 to one; the Senior Leverage Ratio (as defined) may not exceed 3.00 to one; and our Interest Coverage Ratio (as defined) must not be less than 2.50 to one at any time. 3 The notes are redeemable at our option, in whole or in part, at a redemption price defined in the 2025 Notes agreement, and accrued and unpaid interest (if any) to the date of redemption. 4 The notes are redeemable at our option, in whole or in part, at a redemption price defined in the 2021 Notes agreement, and accrued and unpaid interest (if any) to the date of redemption. 5 We may repay the Searchlight note beginning February 2, 2019. (a) Senior Credit Facility During 2017, we amended our Senior Credit Facility. We paid loan fees and other expenses of $0.5 million that were expensed immediately in our Consolidated Statements of Operations for the year ended December 31, 2017 and $0.4 million that were deferred and are being amortized over the life of the Senior Credit Facility. We recorded a $0.6 million loss on extinguishment of debt in our Consolidated Statement of Operations for the year ended December 31, 2017 as part of this amendment. In November 2016, we amended our Senior Credit Facility. We paid loan fees and other expenses of $0.2 million that were expensed immediately in our Consolidated Statement of Operations for the year ended December 31, 2016 and $3.9 million that were deferred and are being amortized over the life of the Senior Credit Facility. We recorded a $0.6 million loss on extinguishment of debt in our Consolidated Statement of Operations for the year ended December 31, 2016 as part of this amendment. We had a $100.0 million outstanding balance and $21.0 million in letters of credit under the $200.0 million Senior Credit Facility Revolver at December 31, 2017 , which leaves $79.0 million available for borrowing as of December 31, 2017 . (b) 2025 Notes and 2021 Notes Interest on the notes is payable semi-annually in arrears. In April 2017, we amended our 2025 Notes and 2021 Notes (the "Notes") due to the Reorganization Agreement that we entered into with Liberty (see Note 15 ). We paid $1.9 million in fees in connection with the amendment to the Notes that were deferred and are being amortized over the remaining life of the Notes. Upon the occurrence of a change of control, each holder of the 2025 and 2021 Notes will have the right to require us to purchase all or any part of such holder’s 2025 or 2021 Notes at a purchase price equal to 101% of the principal amount of such notes, plus accrued and unpaid interest on such notes, if any. If we or certain of our subsidiaries engage in asset sales, we must generally either invest the net cash proceeds from such sales in our business within a period of time, prepay debt under any outstanding credit facility, or make an offer to purchase a principal amount of the notes equal to the excess net cash proceeds, with the purchase price equal to 100% of their principal amount, plus accrued and unpaid interest, if any. In conjunction with the issuance of our 2025 Notes and the repayment of our 2019 Notes, we recorded a $27.7 million loss on extinguishment of debt in our Consolidated Statement of Operations for the year ended December 31, 2015. (c) Searchlight Note 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-1 common stock equal in value to the excess of the fair market value of a share of GCI Class A-1 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 is being amortized over the term of the note using the effective interest method. See Note 9 of this Form 10-K for additional information on the stock appreciation rights. Searchlight became a related party as of February 2, 2015, see Note 13 of this Form 10-K for additional information. 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. (d) Covenants The terms of the Senior Credit Facility include customary representations and warranties, customary affirmative and negative covenants and customary events of default. At any time after the occurrence of an event of default under the Senior Credit Facility, the lenders may, among other options, declare any amounts outstanding under the Senior Credit Facility immediately due and payable and terminate any commitment to make further loans under the Senior Credit Facility. The obligations under the Senior Credit Facility are secured by a security interest on substantially all of the assets of our wholly owned subsidiary, GCI Holdings, Inc. and the subsidiary guarantors, as defined in the Senior Credit Facility, and on the stock of GCI Holdings, Inc. The Wells Fargo note is subject to similar affirmative and negative covenants as the Senior Credit Facility and is secured by a security interest and lien on the building purchased with the funds. The Notes' covenants restrict our wholly owned subsidiary, 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. Limitations and exceptions to note covenants and events of default are described in the Notes' indentures. We were in compliance with all covenants required by our notes and Senior Credit Facility as of December 31, 2017 . Maturities of long-term debt as of December 31, 2017 are as follows (amounts in thousands): Years ending December 31, 2018 $ 2,989 2019 3,010 2020 3,030 2021 643,053 2022 233,365 2023 and thereafter 530,184 Total debt 1,415,631 Less unamortized discount 19,466 Less unamortized deferred loan fees 14,117 Less current portion of long-term debt 2,989 Long-term debt, net $ 1,379,059 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax (expense) benefit consists of the following (amounts in thousands): Years Ended December 31, 2017 2016 2015 Deferred tax (expense) benefit: Federal taxes $ 41,531 (4,452 ) 1,360 State taxes (105 ) (753 ) 487 $ 41,426 (5,205 ) 1,847 Income tax benefit for the year ending December 31, 2017 was recognized primarily as a result of the enactment of the Tax Cuts & Jobs Act (“Tax Reform”) in December 2017. The primary provisions of Tax Reform affecting us are the reduction to the U.S. corporate income tax rate from 35% to 21% and temporary 100% bonus depreciation for certain assets. The change in the tax law required us to remeasure existing net deferred tax liabilities using the lower rate in the year of enactment resulting in an income tax benefit of $41.6 million to reflect these changes in the year ending December 31, 2017. There were no specific impacts of Tax Reform that could not be reasonably estimated which we accounted for under prior law. Total income tax (expense) benefit differed from the “expected” income tax (expense) benefit determined by applying the statutory federal income tax rate of 35% as follows (amounts in thousands): Years Ended December 31, 2017 2016 2015 “Expected” statutory tax (expense) benefit $ 23,152 (374 ) 9,699 Tax reform rate change 41,626 — — Nondeductible unrealized loss on derivative instrument with related party (17,021 ) 1,092 (3,906 ) Employee's excess tax benefit for stock based compensation 3,397 — — Nondeductible officer compensation (3,074 ) (1,424 ) (1,906 ) Nondeductible transaction costs (2,760 ) — — Nondeductible entertainment expenses (1,141 ) (1,029 ) (1,059 ) Nondeductible original issue discount (850 ) (773 ) (660 ) Nondeductible lobbying expenses (345 ) (1,192 ) (442 ) State income taxes, net of federal (expense) benefit (105 ) (753 ) 487 Impact of non-controlling interest attributable to non-tax paying entity — — 220 Other, net (1,453 ) (752 ) (586 ) $ 41,426 (5,205 ) 1,847 The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities at December 31, 2017 and 2016 are summarized below (amounts in thousands): 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 104,617 111,236 Deferred revenue for financial reporting purposes 44,853 59,993 Asset retirement obligations in excess of amounts recognized for tax purposes 13,328 16,808 Compensated absences accrued for financial reporting purposes 2,825 3,505 Share-based compensation expense for financial reporting purposes in excess of amounts recognized for tax purposes 2,629 3,393 Accounts receivable, principally due to allowance for doubtful receivables 1,023 1,965 Workers compensation and self-insurance health reserves, principally due to accrual for financial reporting purposes 1,523 1,705 Alternative minimum tax credits 1,735 1,735 Deferred compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes 1,370 1,687 Other 5,671 11,515 Total deferred tax assets $ 179,574 213,542 Deferred tax liabilities: Plant and equipment, principally due to differences in depreciation $ 192,413 245,118 Intangible assets 77,455 106,061 Other 277 345 Total deferred tax liabilities 270,145 351,524 Net deferred tax liabilities $ 90,571 137,982 At December 31, 2017 , we have tax net operating loss carryforwards of $371.2 million that will begin expiring in 2020 if not utilized. Our utilization of remaining acquired net operating loss carryforwards is subject to annual limitations pursuant to Internal Revenue Code section 382 which could reduce or defer the utilization of these losses. Our tax net operating loss carryforwards are summarized below by year of expiration (amounts in thousands): Years ending December 31, Federal State 2020 $ 1,530 1,505 2021 29,615 27,814 2022 14,081 13,850 2023 3,968 3,903 2024 722 710 2025 1,536 1,511 2026 663 652 2027 1,010 993 2028 39,879 39,226 2029 46,537 45,756 2031 104,101 102,639 2033 5,073 4,968 2034 38,561 37,312 2035 13,415 12,743 2036 282 268 2037 70,195 66,850 Total tax net operating loss carryforwards $ 371,168 360,700 Tax benefits associated with recorded deferred tax assets are considered to be more likely than not realizable through taxable income earned in carryback years, future reversals of existing taxable temporary differences, and future taxable income exclusive of reversing temporary differences and carryforwards. The amount of deferred tax assets considered realizable, however, could be reduced if estimates of future taxable income during the carryforward period are reduced. We file federal income tax returns in the U.S. and in various state jurisdictions. We are not subject to U.S. or state tax examinations by tax authorities for years 2013 and earlier except that certain U.S. federal income tax returns for years after 2001 are not closed by relevant statutes of limitations due to unused net operating losses reported on those income tax returns. We recognize accrued interest on unrecognized tax benefits in interest expense and penalties in selling, general and administrative expenses. We did no t have any unrecognized tax benefits as of December 31, 2017 , 2016 and 2015 , and accordingly, we did no t recognize any interest expense. Additionally, we recorded no penalties during the years ended December 31, 2017 , 2016 and 2015 . We adopted ASU 2016-09 as of January 1, 2017 on a modified retrospective basis. As a result of this adoption, we have recorded a $7.1 million adjustment to Retained Earnings (Deficit) as of January 1, 2017. We recorded an excess tax benefit generated from stock based compensation during the year ended December 31, 2017 of $3.4 million . We did no t record any excess tax benefit generated from stock based compensation during the years ended December 31, 2016 and 2015 , since we were in a net operating loss carryforward position and the income tax deduction would not yet reduce income taxes payable. |
Fair Value Measurements and Der
Fair Value Measurements and Derivative Instrument | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Derivative Instrument | Fair Value Measurements and Derivative Instrument Recurring Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016 are as follows (amounts in thousands): December 31, 2017 Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Deferred compensation plan assets (mutual funds) $ 1,323 — — 1,323 Liabilities: Derivative stock appreciation rights $ — — 78,330 78,330 December 31, 2016 Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Deferred compensation plan assets (mutual funds) $ 1,477 — — 1,477 Liabilities: Derivative stock appreciation rights $ — — 29,700 29,700 (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 Instrument" 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 December 31, 2017 and 2016 are as follows (amounts in thousands): December 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Current and long-term debt $ 1,382,048 1,458,106 1,336,772 1,393,865 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. are based upon quoted market prices for the same or similar issues (Level 2). • The fair value of our Searchlight Note 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 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 Instrument 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-1 common stock equal in value to the excess of the fair market value of a share of GCI Class A-1 common stock on the date of exercise over the price of $13.00 . The instrument is 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 a derivative instrument and are 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, and the impact of a change of control (please see Note 15 for additional information regarding a change of control contingency). The lattice model uses highly subjective assumptions and the use of other reasonable assumptions could provide different results. The following table shows our significant assumptions and inputs used in the lattice-based valuation model to value the stock appreciation right liability at December 31, 2017 and 2016 : 2017 2016 Contractual term (in years) 1.1 - 5.1 2.1 - 6.1 Volatility 25% to 37.5% 37.5 % Risk-free interest rate 1.3 to 2.2% 2.1 % Stock Price $ 39.02 $ 19.45 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 instrument. The derivative liability is included within Other Liabilities in our Consolidated Balance Sheets and is 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 years ended December 31, 2017 , 2016, and 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) 11,160 Balance at December 31, 2015 $ 32,820 Fair value adjustment at end of period, included in Other Income (Expense) (3,120 ) Balance at December 31, 2016 $ 29,700 Fair value adjustment at end of period, included in Other Income (Expense) 48,630 Balance at December 31, 2017 $ 78,330 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock GCI’s Class A-1 and Class B-1 common stock are identical in all respects, except that each share of Class A-1 common stock has one vote per share and each share of Class B-1 common stock has ten votes per share. Each share of Class B-1 common stock outstanding is convertible, at the option of the holder, into one share of Class A-1 common stock. GCI’s Board of Directors has authorized a common stock buyback program for the repurchase of GCI’s Class A-1 and Class B-1 common stock in order to reduce the outstanding shares of Class A-1 and Class B-1 common stock. We have temporarily suspended the buyback program due to the Reorganization Agreement that we entered into with Liberty (see Note 15 ) During the years ended December 31, 2017 , 2016 and 2015 we repurchased 0.2 million , 3.5 million , and 3.0 million shares, respectively, of our Class A-1 common stock under the stock buyback program at a cost of $4.0 million , $55.2 million and $47.4 million , respectively. Under this program we are currently authorized to make up to $61.2 million of repurchases as of December 31, 2017 . Shared-Based Compensation Our Amended and Restated 1986 Stock Option Plan ("Stock Option Plan"), provides for the grant of restricted stock awards for a maximum of 15.7 million shares of GCI Class A-1 common stock, subject to adjustment upon the occurrence of stock dividends, stock splits, mergers, consolidations or certain other changes in corporate structure or capitalization. If an award expires or terminates, the shares subject to the award will be available for further grants of awards under the Stock Option Plan. The Compensation Committee of GCI’s Board of Directors administers the Stock Option Plan. Substantially all restricted stock awards granted vest over periods of up to three years. The requisite service period of our awards is generally the same as the vesting period. New shares are issued when restricted stock awards are granted. We have 1.2 million shares available for grant under the Stock Option Plan at December 31, 2017 . A summary of nonvested restricted stock award activity under the Stock Option Plan for the year ended December 31, 2017 , follows (share amounts in thousands): Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2016 1,465 $ 14.41 Granted 607 $ 23.24 Vested (894 ) $ 16.22 Forfeited (5 ) $ 18.48 Nonvested at December 31, 2016 1,173 $ 17.58 The weighted average grant date fair value of awards granted during the years ended December 31, 2017 , 2016 , and 2015 were $23.24 , $17.87 and $15.06 , respectively. The total fair value of awards vesting during the years ended December 31, 2017 , 2016 , and 2015 were $29.9 million , $13.5 million and $17.0 million , respectively. We have recorded share-based compensation expense of $17.5 million , $11.0 million , and $10.9 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Share-based compensation expense is classified as Selling, General and Administrative Expense in our Consolidated Statements of Operations. Unrecognized share-based compensation expense is $11.3 million as of December 31, 2017 . We expect to recognize share-based compensation expense over a weighted average period of 1.6 years for restricted stock awards. GCI 401(k) Plan In 1986, we adopted an Employee Stock Purchase Plan (“GCI 401(k) Plan”) qualified under Section 401 of the Internal Revenue Code of 1986. The GCI 401(k) Plan provides for acquisition of GCI’s Class A-1 common stock at market value as well as various mutual funds. We may match a percentage of the employees' contributions up to certain limits, decided by GCI’s Board of Directors each year. Our matching contributions allocated to participant accounts totaled $11.0 million , $11.0 million and $9.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. We used cash to fund all of our employer-matching contributions during the years ended December 31, 2017 , 2016 and 2015 . |
Earnings (Loss) per Common Shar
Earnings (Loss) per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Common Share | Earnings (Loss) per Common Share Earnings 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): Year Ended December 31, 2017 Class A-1 Class B-1 Basic net loss per share: Numerator: Undistributed loss allocable to common stockholders (22,074 ) (2,172 ) Denominator: Weighted average common shares outstanding 31,344 3,083 Basic net loss attributable to GCI common stockholders per common share $ (0.70 ) (0.70 ) Diluted net loss per share: Numerator: Undistributed loss allocable to common stockholders for basic computation $ (22,074 ) (2,172 ) Reallocation of undistributed loss as a result of conversion of Class B-1 to Class A-1 shares (2,172 ) — Net loss adjusted for allocation of undistributed earnings and effect of contracts that may be settled in cash or shares $ (24,246 ) (2,172 ) Denominator: Number of shares used in basic computation 31,344 3,083 Conversion of Class B-1 to Class A-1 common shares outstanding 3,083 — Number of shares used in per share computation 34,427 3,083 Diluted net loss attributable to GCI common stockholders per common share $ (0.70 ) (0.70 ) Years Ended December 31, 2016 2015 Class A-1 Class B-1 Class A-1 Class B-1 Basic net loss per share: Numerator: Undistributed loss allocable to common stockholders $ (3,343 ) (324 ) (23,858 ) (2,167 ) Denominator: Weighted average common shares outstanding 32,526 3,154 34,764 3,157 Basic net loss attributable to GCI common stockholders per common share $ (0.10 ) (0.10 ) (0.69 ) (0.69 ) Diluted net loss per share: Numerator: Undistributed loss allocable to common stockholders for basic computation $ (3,343 ) (324 ) (23,858 ) (2,167 ) Reallocation of undistributed loss as a result of conversion of Class B-1 to Class A-1 shares (324 ) — (2,167 ) — Reallocation of undistributed loss as a result of conversion of dilutive securities — (154 ) — — Effect of derivative instrument that may be settled in cash or shares (1,837 ) — — — Effect of share based compensation that may be settled in cash or shares (5 ) — — — Net loss adjusted for allocation of undistributed loss and effect of contracts that may be settled in cash or shares $ (5,509 ) (478 ) (26,025 ) (2,167 ) Denominator: Number of shares used in basic computation 32,526 3,154 34,764 3,157 Conversion of Class B-1 to Class A-1 common shares outstanding 3,154 — 3,157 — Effect of derivative instrument that may settled in cash or shares 612 — — — Effect of share based compensation that may be settled in cash or shares 26 — — — Number of shares used in per share computation 36,318 3,154 37,921 3,157 Diluted net loss attributable to GCI common stockholders per common share $ (0.15 ) (0.15 ) (0.69 ) (0.69 ) Weighted average shares associated with outstanding securities for the years ended December 31, 2017 , 2016 and 2015 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): Years Ended December 31, 2017 2016 2015 Derivative instrument that may be settled in cash or shares 1,870 — 724 Shares associated with unexercised stock options 1 3 108 Share-based compensation that may be settled in cash or shares 26 — 26 Total excluded 1,897 3 858 |
Industry Segments Data
Industry Segments Data | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Industry Segments Data | Industry Segments Data We operate our business under a single reportable segment. Effective in the first quarter of 2017, we reassessed and reorganized our management and internal reporting structures in order to make our operations more efficient, which triggered an analysis of our reportable segments. As a result of our assessment, we merged our former Wireless and Wireline segments into one operating segment. We realigned our external financial reporting to support this change. Our chief operating decision maker assesses our financial performance as follows: • Capital expenditure decisions are based on the support they provide to all revenue streams • Revenues are managed on the basis of specific customers and customer groups • Costs are generally managed and assessed by function and generally support the organization across all customer groups or revenue streams • Profitability is assessed at the consolidated level Prior to 2017, we operated our business under two reportable segments - Wireline and Wireless. As a result of the reorganization of our reporting structure, assets, including goodwill, and liabilities were reassigned to a single reporting unit. Revenues summarized by customer and service type for the years ended December 31, 2017, 2016, and 2015 follows (amounts in thousands): 2017 2016 2015 Consumer Business Total Consumer Business Total Consumer Business Total Revenues Wireless 167,733 104,614 272,347 177,801 105,355 283,156 199,862 151,710 351,572 Data 145,757 308,480 454,237 140,196 296,202 436,398 130,213 269,472 399,685 Video 99,609 18,039 117,648 107,305 20,102 127,407 115,074 18,819 133,893 Voice 23,783 51,189 74,972 26,734 60,117 86,851 30,110 63,274 93,384 Total 436,882 482,322 919,204 452,036 481,776 933,812 475,259 503,275 978,534 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. We had no major customers for the years ended December 31, 2017 and 2016. We earned revenues from a major customer, net of discounts, of $130.8 million or 13% of total consolidated revenues for the year ended December 31, 2015 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On July 11, 2016, we repurchased 1,000,000 shares of our Class A-1 common stock for $16.1 million from John W. Stanton and Theresa E. Gillespie, husband and wife, who continue to be significant shareholders of our Class B-1 common stock. As disclosed in Note 7 and Note 9 of this Form 10-K, we have an unsecured promissory note and stock appreciation rights with Searchlight. Searchlight received the right to nominate one person for appointment or election as a member of our Board of Directors pursuant to a Securityholder Agreement dated as of December 4, 2014. Searchlight became a related party on February 2, 2015 when we closed the Wireless Acquisition. Searchlight's nominee was appointed as a member of our Board of Directors on March 4, 2015. We entered into a long-term capital lease agreement in 1991 with the wife of GCI’s CEO for property occupied by us. The leased asset was capitalized in 1991 at the owner’s cost of $0.9 million and the related obligation was recorded. The lease agreement was amended in April 2008 and our existing capital lease asset and liability increased by $1.3 million to record the extension of this capital lease. The amended lease terminates on September 30, 2026. In January 2001 we entered into an aircraft operating lease agreement with a company owned by GCI’s CEO. The lease was amended several times, most recently in May 2011. The lease term of the aircraft may be terminated at any time by us upon 12 months’ written notice. The monthly lease rate of the aircraft is $132,000 . In 2001, we paid a deposit of $1.5 million in connection with the lease. The deposit will be repaid to us no later than six months after the agreement terminates. ACS was a related party for financial statement reporting purposes through the date of the Wireless Acquisition on February 2, 2015. Included in our related party disclosures were ACS' provision to us of local service lines and network capacity in locations where we did not have our own facilities, our provision to ACS of wholesale wireless services for their use of our network to sell services to their respective retail customers, and our receipt of ACS' high cost support from USF for its wireless customers. For the period January 1, 2015 to February 2, 2015, we paid ACS $6.2 million and received $8.1 million in payments from ACS. We also have long-term capacity exchange agreements with ACS for which no money is exchanged. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [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 various projects that extended terrestrial broadband service for the first time to rural Northwestern Alaska communities via a high capacity hybrid fiber optic and microwave network. 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. Each of the transactions has an investment fund, which is a special purpose entity created to effect the financing arrangement. In each of the transactions, we loaned money to the investment fund and US Bancorp invested money in the investment fund. The investment fund would then contribute the funds from our loan and US Bancorp's investment to a CDE. The CDE, in turn, would loan the funds to our wholly owned subsidiary, Unicom, Inc. ("Unicom") as partial financing for the projects. US Bancorp 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 the projects. Restricted cash of $15.4 million and $0.9 million was held by Unicom at December 31, 2017 , and 2016 , respectively, and is included in our Consolidated Balance Sheets. We completed construction of the projects partially funded by these transactions. These transactions include put/call provisions whereby we may be obligated or entitled to repurchase US Bancorp’s interests in the investment funds. We believe that US Bancorp will exercise the put options at the end of the compliance periods for each of the transactions. The NMTCs are subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code. We are required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangements. Non-compliance with applicable requirements could result in projected tax benefits not being realized by US Bancorp. We have agreed to indemnify US Bancorp for any loss or recapture of NMTCs until such time as our obligation to deliver tax benefits is relieved. There have been no credit recaptures as of December 31, 2017 . The value attributed to the put/calls is nominal. We have determined that each of the investment funds are VIEs. The consolidated financial statements of each of the investment funds include the CDEs. 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 $165.9 million and $121.2 million , respectively, as of December 31, 2017 , and $140.9 million and $104.2 million , respectively as of December 31, 2016 . The assets of the VIEs serve as the sole source of repayment for the debt issued by these entities. US Bank does not have recourse to us or our other assets, with the exception of customary representations and indemnities we have provided. We are not required and do not currently intend to provide additional financial support to these VIEs. While these subsidiaries are included in our consolidated financial statements, these subsidiaries are separate legal entities and their assets are legally owned by them and not available to our creditors. The following table summarizes the key terms of each of the NMTC transactions: Financing Arrangement Investment Funds Transaction Date Loan Amount Interest Rate on Loan to Investment Fund Maturity Date US Bancorp Investment Loan to Unicom Interest Rate on Loan(s) to Unicom Expected Put Option Exercise NMTC #1 TIF August 30, 2011 $58.3 million 1% August 30, 2041 $22.4 million $76.8 million 1% to 3.96% August 2018 NMTC #2 TIF 2 & TIF 2-USB October 3, 2012 $37.7 million 1% October 2, 2042 $17.5 million $55.2 million 0.71% to 0.77% October 2019 NMTC #3 TIF 3 December 11, 2012 $8.2 million 1% December 10, 2042 $3.8 million $12.0 million 1.35% December 2019 NMTC #4 TIF 4 March 21, 2017 $6.7 million 1% March 21, 2040 $3.3 million $9.8 million 0.73% March 2024 NMTC #5 TIF 5-1 and TIF 5-2 December 22, 2017 $10.4 million 1% December 22, 2047 $5.1 million $14.7 million 0.67% to 1.24% December 2024 Equity Method Investment We owned a 40.8% interest in a next generation carrier-class communications services firm that we accounted for using the equity method and due to a reconsideration event determined that the entity was a VIE. During the second quarter of 2015, it became apparent that we would not recover the carrying value of our investment. We determined that the fair value of the equity investment was $ 0 and subsequently wrote-off the entire value of our investment resulting in an impairment loss of $12.6 million for the year ended December 31, 2015 that is recorded in Other Income (Expense) in our Consolidated Statement of Operations. The fair value determination was based upon market information obtained during the second quarter of 2015, the estimated liquidation value of the entity's assets and the amount of senior secured debt at the valuation date. The entity has subsequently closed its operations. We do not have a contractual obligation to provide additional financing and we have no exposure to loss related to our involvement with the VIE. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On April 4, 2017, General Communication, Inc., Liberty Interactive Corporation, a Delaware corporation (“Liberty”) and Liberty Interactive LLC, a Delaware limited liability company and a direct wholly-owned subsidiary of Liberty (“Liberty LLC”), entered into an Agreement and Plan of Reorganization (as may be amended from time to time, the “Reorganization Agreement” and the transactions contemplated thereby, the “Transactions”). Pursuant to the Reorganization Agreement, General Communication, Inc. amended and restated its articles of incorporation resulting in General Communication, Inc. being renamed GCI Liberty, Inc. and a reclassification and auto conversion of its common stock. Following these events, Liberty will acquire GCI through a reorganization in which certain interests, assets and liabilities of the Liberty Ventures Group (“Liberty Ventures”) will be contributed to GCI Liberty in exchange for a controlling interest in GCI Liberty. The assets to be contributed to GCI Liberty are expected to include Liberty’s equity interests in Liberty Broadband and Charter Communications, Inc. along with certain other equity interests, together with the operating business of Evite, Inc. and certain other assets and liabilities, in exchange for (a) the issuance to Liberty LLC of (i) a number of shares of GCI Liberty Class A Common Stock and a number of shares of GCI Liberty Class B Common Stock equal to the number of outstanding shares of Series A Liberty Ventures common stock and Series B Liberty Ventures common stock outstanding on the closing date of the contribution, respectively, and (ii) cash, and (b) the assumption by GCI Liberty of certain liabilities attributed to Liberty Ventures. Following the contribution and acquisition of GCI Liberty, Liberty will then effect a tax-free separation of its controlling interest in GCI Liberty to the holders of Liberty Ventures common stock in full redemption of all outstanding shares of such stock. As a result of the Transactions, holders of GCI common stock (regardless of class) each will receive (i) 0.63 of a share of GCI Liberty Class A common stock and (ii) 0.20 of a share of new GCI Liberty Series A Cumulative Redeemable preferred stock in exchange for each share of their existing GCI stock. The exchange ratios were determined based on total consideration of $32.50 per share in respect of each share of existing GCI common stock, comprised of $27.50 per share in GCI Liberty Class A common stock and $5.00 per share in newly issued GCI Liberty Series A Cumulative Redeemable preferred stock, based upon a Liberty Ventures reference price of $43.65 (with no premium paid for shares of GCI Class B common stock) and an initial liquidation price of $25.00 per share of GCI Liberty Series A Cumulative Redeemable preferred stock. The GCI Liberty Series A Cumulative Redeemable preferred stock will accrue dividends at an initial rate of 5% per annum (which would increase to 7% in connection with a future reincorporation of GCI Liberty in Delaware) and will be redeemable upon the 21st anniversary of the closing. The closing of the Transactions are expected to be consummated on March 9, 2018, subject to the satisfaction of customary closing conditions. On April 12, 2017, we announced that our wholly owned subsidiary, GCI, Inc., was soliciting consents from the holders of its outstanding Notes to effect certain amendments to the indentures governing the Notes (the “Indentures”) to facilitate the Transactions, upon the terms and subject to the conditions set forth in the Consent Solicitation Statement, dated April 12, 2017, and the related Letter of Consent. The consent solicitation expired on April 24, 2017 and we received consents from holders of: (a) $312,418,000 in aggregate principal amount of the 2021 Notes, representing 96.13% of the total principal amount outstanding of the 2021 Notes, and (b) $443,538,000 in aggregate principal amount of the 2025 Notes, representing 98.56% of the total principal amount outstanding of the 2025 Notes. The consent of holders of at least a majority in aggregate principal amount of a series of Notes then outstanding was required to approve the proposed amendment with respect to that series of Notes. On April 26, 2017, we paid to the tabulation agent for the benefit of registered holders of Notes as of the record date for the Consent Solicitation that validly delivered (and did not validly revoke) a properly completed letter of consent (a “Consent”) on or prior to the expiration date (x) with respect to the proposed amendment relating to the 2021 Notes, an aggregate consent fee of $812,500 payable to the holders of 2021 Notes, on a pro rata basis, who validly delivered (and did not validly revoke) a properly completed Consent and (y) with respect to the proposed amendment relating to the 2025 Notes, an aggregate consent fee of $1,125,000 payable to the holders of 2025 Notes, on a pro rata basis, who validly delivered (and did not validly revoke) a properly completed Consent. The proposed amendments will be effected by supplemental indentures to the Indentures. We believe the Transactions will result in a change of control for the Searchlight stock appreciation rights that will result in us settling that instrument in cash. Operating Leases as Lessee We lease business offices, have entered into site lease agreements, and use satellite transponder and fiber capacity and certain equipment pursuant to operating lease arrangements. Many of our leases are for multiple years and contain renewal options. Rental costs under such arrangements amounted to $58.8 million , $58.9 million and $51.5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Capital Leases as Lessee We entered into a long-term capital lease agreement in 1991 with the wife of GCI’s President for property occupied by us as further described in Note 13 of this Form 10-K. We have a capital lease agreement for transponder capacity on Intelsat, Ltd.’s (“Intelsat”) Galaxy 18 spacecraft. The Intelsat Galaxy 18 C-band and Ku-Band transponders are being leased over an expected term of 14 years. At lease inception the present value of the lease payments, excluding telemetry, tracking and command services and back-up protection, was $98.6 million . A summary of future minimum lease payments follows (amounts in thousands): Years ending December 31: Operating Capital 2018 $ 48,409 13,440 2019 38,293 13,450 2020 27,566 13,459 2021 19,806 12,044 2022 11,715 5,293 2023 and thereafter 28,298 2,411 Total minimum lease payments $ 174,087 60,097 Less amount representing interest 9,781 Less current maturity of obligations under capital leases 10,028 Long-term obligations under capital leases, excluding current maturity $ 40,288 The leases generally provide that we pay the taxes, insurance and maintenance expenses related to the leased assets. Several of our leases include renewal options, escalation clauses and immaterial amounts of contingent rent expense. We expect that in the normal course of business leases that expire will be renewed or replaced by leases on other properties. Guaranteed Service Levels Certain customers have guaranteed levels of service with varying terms. In the event we are unable to provide the minimum service levels we may incur penalties or issue credits to customers. Self-Insurance Through December 31, 2017 , we were self-insured for losses and liabilities related to health and welfare claims up to $750,000 per incident per year above which third party insurance applied. A reserve of $4.8 million and $4.0 million are recorded at December 31, 2017 and 2016 , respectively, to cover estimated reported losses, estimated unreported losses based on past experience modified for current trends, and estimated expenses for settling claims. We are self-insured for all losses and liabilities related to workers’ compensation claims in Alaska and have a workers compensation excess insurance policy to make claims for any losses in excess of $500,000 per incident. A reserve of $3.2 million and $2.9 million are recorded at December 31, 2017 and 2016 , respectively, to cover estimated reported losses and estimated expenses for open and active claims. Actual losses will vary from the recorded reserves. While we use what we believe are pertinent information and factors in determining the amount of reserves, future additions or reductions to the reserves may be necessary due to changes in the information and factors used. We are self-insured for damage or loss to certain of our transmission facilities, including our buried, undersea, and above-ground transmission lines. If we become subject to substantial uninsured liabilities due to damage or loss to such facilities, our financial position, results of operations or liquidity may be adversely affected. Litigation, Disputes, and Regulatory Matters We are involved in various lawsuits, billing disputes, legal proceedings, and regulatory matters that have arisen from time to time in the normal course of business. Management believes there are no proceedings from asserted and unasserted claims which if determined adversely would have a material adverse effect on our financial position, results of operations or liquidity. Tribal Mobility Fund I Grant In February 2014, the FCC announced our winning bids in the Tribal Mobility Fund I auction for a $41.4 million grant to partially fund expansion of our 3G wireless network, or better, to locations in Alaska where we would not otherwise be able to construct within our return-on-investment requirements. We received $16.8 million , $0 million and $13.8 million in 2017 , 2016 , and 2015 , respectively, and expect to receive $10.8 million in additional grant fund disbursements in the future depending on the timing of upgrades completed and test results submitted to and approved by the FCC. |
Software Impairment
Software Impairment | 12 Months Ended |
Dec. 31, 2017 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Software Impairment | Software Impairment During the years ended December 31, 2013 and 2014, we internally developed computer software to replace our wireless, Internet, video, local service, and long distance customer billing systems. In early 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 in early 2015, that may be applicable to our replacement customer billing solution, future internally developed software, and other system needs and therefore should remain capital assets. We considered the remaining capital expenditures for this billing system to have a fair value of $0 and recorded an impairment charge of $20.7 million during the year ended December 31, 2015 by recording an expense which is included in Software Impairment Charge in our Consolidated Statement of Operations. In early 2015, we reassessed our plans for our internally developed machine-to-machine billing system and decided to no longer market this system to third parties. Accordingly, we recognized an impairment of $7.1 million during the year ended December 31, 2015 by recording an expense which is included in Software Impairment Charge in our Consolidated Statement of Operations. In late 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 year ended December 31, 2015 by recording an expense which is included in Software Impairment Charge in our Consolidated Statement of Operations. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2017 and 2016 (amounts in thousands, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2017 Total revenues $ 228,115 224,346 231,214 235,529 Operating income $ 15,346 11,031 24,174 20,699 Net income (loss) $ (55,246 ) (9,000 ) (8,849 ) 48,373 Net income (loss) attributable to GCI $ (55,129 ) (8,882 ) (8,731 ) 48,496 Basic net income (loss) attributable to GCI per common share $ (1.60 ) (0.26 ) (0.25 ) 1.35 Diluted net income (loss) attributable to GCI per common share $ (1.60 ) (0.26 ) (0.25 ) 1.19 2016 Total revenues $ 231,098 233,766 236,655 232,293 Operating income $ 20,019 19,531 26,368 13,185 Net income (loss) $ 982 3,298 7,827 (16,243 ) Net income (loss) attributable to GCI $ 1,099 3,415 7,943 (16,124 ) Basic net income (loss) attributable to GCI per common share $ 0.03 0.09 0.21 (0.47 ) Diluted net income (loss) attributable to GCI per common share $ (0.04 ) (0.01 ) 0.14 (0.47 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 2, 2018, we held a special shareholder meeting where our shareholders approved the Transactions with Liberty. On February 20, 2018, the Commissioner of the Department of Commerce, Community and Economic Development of the State of Alaska accepted for filing the amended and restated Articles of Incorporation that were approved by our shareholders at the special meeting held on February 2, 2018. On February 28, 2018, we amended our Senior Credit Facility to increase the revolving credit facility from $200.0 million to $300.0 million . Additionally, we increased the maximum secured leverage ratio permitted under the Senior Credit Facility from 3.00 :1.00 to 3.50 :1.00. |
Business and Summary of Signi25
Business and Summary of Significant Accounting Principles (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Our consolidated financial statements include the consolidated accounts of GCI 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 seven variable interest entities (“VIEs”) for which we are the primary beneficiary after providing certain loans and guarantees. These VIEs are as follows: • Terra GCI Investment Fund, LLC (“TIF”) • Terra GCI 2 Investment Fund, LLC (“TIF 2”) • Terra GCI 2-USB Investment Fund, LLC (“TIF 2-USB”) • Terra GCI 3 Investment Fund, LLC (“TIF 3”) • Twain Investment Fund 210, LLC ("TIF 4") • Terra GCI 5 Investment Fund 1, LLC ("TIF 5-1") • Terra GCI 5 Investment Fund 2, LLC ("TIF 5-2") 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 | Acquisitions Wireless Acquisition On February 2, 2015, we purchased Alaska Communications Systems Group, Inc.'s (“ACS”) interest in AWN ("AWN NCI Acquisition") and substantially all the assets of ACS and its affiliates related to ACS’s wireless operations (“Acquired ACS Assets”) (collectively the "Wireless Acquisition"). Under the terms of the agreement, we paid ACS $293.2 million , excluding working capital adjustments and agreed to terminate certain agreements related to the use of ACS network assets that were included as part of the original transaction that closed in July 2013. The Acquired ACS Assets included 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 accounted for the AWN NCI Acquisition as the acquisition of a non-controlling interest in accordance with Accounting Standards Codification ("ASC") 810, Consolidation, and the Acquired ACS Assets as the acquisition of assets that do not constitute a business in accordance with ASC 805-50, Business Combinations - Related Issues. Total consideration transferred to ACS in the transaction consisted of the cash payment, settlement of working capital, and the fair market value of certain rights to receive future capacity terminated as part of the Wireless Acquisition agreement. The future capacity receivable assets transferred as consideration were adjusted to fair value as of the acquisition date resulting in a gain of $1.2 million recorded in Other Income (Expense) in our Consolidated Statement of Operations for the year ended December 31, 2015. We allocated the total consideration transferred to ACS between the AWN NCI Acquisition and the Acquired ACS Assets based on the relative fair values of the assets and non-controlling interest received. The following table summarizes the allocation of total consideration transferred to ACS between the AWN NCI Acquisition and the Acquired ACS Assets excluding working capital adjustments (amounts in thousands): Total consideration transferred to ACS $ 304,838 Allocation of consideration between wireless assets and non-controlling interest acquired: AWN non-controlling interest $ 303,831 Property and equipment 746 Other intangible assets 261 Total consideration $ 304,838 We accounted for the AWN NCI Acquisition as an equity transaction, with the carrying amount of the non-controlling interest adjusted to reflect the change in ownership of AWN. The difference between the fair value of consideration paid and the total of the additional deferred taxes incurred as a result of the transaction and the carrying amount of the non-controlling interest was 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 Increase in deferred tax assets 8,445 Additional paid-in capital 27,022 Fair value of consideration paid for acquisition of equity interest $ 303,831 Pursuant to the accounting guidance in ASC 805-50, we determined that the Acquired ACS Assets did not meet the criteria necessary to constitute a business combination and was therefore accounted for as an asset purchase. We recognized the assets acquired in our Consolidated Balance Sheet at their allocated cost on the day of acquisition. The deferred tax assets and additional paid-in capital were adjusted in 2016 as a result of the reallocation of partnership tax basis as determined when preparing the 2015 federal tax return. In conjunction with the Wireless Acquisition, we amended certain agreements related to the right to use ACS network assets. We adjusted the related right to use asset to fair value as of the acquisition date resulting in a loss of $3.8 million recorded in Other Income (Expense) in our Consolidated Statement of Operations for the year ended December 31, 2015. Other Acquisitions During the year ended December 31, 2015, we completed three additional business acquisitions for total cash consideration of $12.7 million , net of cash received. We accounted for the transactions using the acquisition method of accounting under ASC 805, Business Combinations. Accordingly, the assets received, liabilities assumed and any non-controlling interests were recorded at their estimated fair value as of the acquisition date. We determined the estimated fair values using a combination of the discounted cash flows method and estimates made by management. |
Recently Issued Accounting Pronouncements and Recently Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. This standard provides guidance for the recognition, measurement and disclosure of revenue resulting from contracts with customers and will supersede virtually all of the current revenue recognition guidance under GAAP. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date to fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. In March 2016, the FASB issued ASU 2016-08, which amended the guidance in the new standard in order to clarify the principal versus agent assessment and is intended to make the guidance more operable and lead to more consistent application. In April 2016, the FASB issued ASU 2016-10, which clarifies the identification of performance obligations and the licensing implementation guidance in ASU 2014-09. In May 2016, the FASB issued ASU 2016-11, which rescinds SEC paragraphs pursuant to SEC staff announcements regarding ASU 2014-09. These rescissions include changes to topics pertaining to accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer. In May 2016, the FASB issued ASU 2016-12, which provides clarifying guidance in certain narrow areas and adds some practical expedients to ASU 2014-09. In December 2016, the FASB issued ASU 2016-20 which makes minor corrections or improvements to ASU 2014-09 that are not expected to have a significant effect on accounting practices under ASU 2014-09. In September 2017, the FASB issued ASU 2017-13 which allows certain public business entities to use the non-public business entities effective dates to adopt ASU 2014-09. In November 2017, the FASB issued ASU 2017-14 which supersedes ASC 605-10-S25-1 (Staff Accounting Bulletin ("SAB") Topic 13) as a result of SEC SAB No. 116 and adding ASC 606-10-S25-1 as a result of SEC Release No. 33-10403. The standard permits the use of either the retrospective or cumulative effect transition method. We will use the modified retrospective method to adopt this standard. We have completed our assessment of revenues earned with the exception of our roaming contracts. We are still completing our quantitative assessment of costs to obtain contracts. Upon adoption, we may recognize a cumulative increase to retained earnings of up to $33.3 million as of January 1, 2018 to adjust revenue for roaming contracts and costs to obtain contracts. We will have additional revenue recognition disclosures upon adoption of the new standard. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Lease accounting by the lessor remains largely unchanged by the new standard. In January 2018, the FASB issued ASU 2018-01 which amends Topic 842 to include a practical expedient for transitioning land easements that were not previously accounted for as leases to Topic 842. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and is required to be adopted using the modified retrospective approach. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations, but we expect that adoption will have a material impact on our long-term assets and liabilities. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The update introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate consideration of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. ASU 2016-13 is effective for annual and interim reporting periods beginning after December 15, 2019, and is required to be adopted using the modified retrospective approach. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2018. We are currently evaluating the impact of the provisions of this new standard on our financial position and results of operations. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update addresses eight specific cash flow issues with the objective of reducing diversity in practice. The issues identified within the ASU include: debt prepayments or extinguishment costs; contingent consideration made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identified cash flows and application of the predominance principle. ASU 2016-15 is effective for annual and interim reporting periods beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of this guidance is not expected to have a material effect on our statement of cash flows. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This update provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. ASU 2016-08 is effective for annual and interim preporting periods beginning after December 15, 2017, and interim periods within those fiscal years. Upon adoption of this standard, we will include restricted cash with total cash in our Consolidated Statements of Cash Flows. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The update eliminates step 2 of the goodwill impairment test. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the maximum impairment being the total value of goodwill allocated to the reporting unit. ASU 2017-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The adoption of this guidance is not expected to have a material effect on our financial position or results of operations. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718) — Scope of Modification Accounting. ASU 2017-09 applies to entities that change the terms or conditions of a share-based payment award. The FASB adopted ASU 2017-09 to provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to the modification of the terms and conditions of a share-based payment award. The amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. Effective for all entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. The adoption of this guidance is not expected to have a material effect on our financial position or results of operations. (f) Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC 718, Compensation - Stock Compensation. The update includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. ASU 2016-09 requires all excess tax benefits to be recorded in income even if they have not yet been realized. ASU 2016-09 also provides an election to account for forfeitures as they occur as opposed to estimating the amount of forfeitures. We adopted ASU 2016-09 as of January 1, 2017 on a modified retrospective basis. We have elected to account for forfeitures as they occur. |
Regulatory Accounting | Regulatory Accounting We account for the regulated operations of our incumbent local exchange carriers in accordance with the accounting principles for regulated enterprises. This accounting recognizes the economic effects of rate regulation by recording cost and a return on investment as such amounts are recovered through rates authorized by regulatory authorities. Accordingly, plant and equipment is depreciated over lives approved by regulators and certain costs and obligations are deferred based upon approvals received from regulators to permit recovery of such amounts in future years. Our cost studies and depreciation rates for our regulated operations are subject to periodic audits that could result in a change to recorded revenues. |
Earnings per Common Share | Earnings per Common Share We compute net loss attributable to GCI per share of Class A-1 and Class B-1 common stock using the “two class” method. Therefore, basic net loss per share is computed by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of common and dilutive common equivalent shares outstanding during the period. The computation of the dilutive net loss per share of Class A-1 common stock assumes the conversion of Class B-1 common stock to Class A-1 common stock, while the dilutive net loss per share of Class B-1 common stock does not assume the conversion of those shares. The computation of the dilutive net loss per share of Class A-1 common stock also assumes the conversion of our derivative financial instrument that may be settled in cash or shares (as described in Note 11 of this Form 10-K), shares associated with unexercised stock options and deferred compensation that may be settled in cash or shares if the effect of conversion is dilutive. 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-1 common shares, Class B-1 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-1 and Class B-1 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. |
Common Stock and Treasury Stock | Common Stock We have a common stock buyback program to repurchase GCI's common stock. The cost of the repurchased common stock reduces Retained Earnings (Deficit) in our Consolidated Balance Sheets and is constructively retired when purchased. Treasury Stock We account for treasury stock purchased for general corporate purposes under the cost method and include treasury stock as a component of Stockholders’ Equity. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of certificates of deposit which have an original maturity of three months or less at the date acquired and are readily convertible into cash. |
Accounts Receivable and Allowance for Doubtful Receivables | Accounts Receivable and Allowance for Doubtful Receivables Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful receivables is our best estimate of the amount of probable credit losses in our existing accounts receivable. We base our estimates on the aging of our accounts receivable balances, financial health of specific customers, regional economic data, changes in our collections process, regulatory requirements and our customers’ compliance with Universal Service Administrative Company rules. We review our allowance for doubtful receivables methodology at least annually. Depending upon the type of account receivable our allowance is calculated using a pooled basis with an allowance for all accounts greater than 120 days past due, a pooled basis using a percentage of related accounts, or a specific identification method. When a specific identification method is used, potentially uncollectible accounts due to bankruptcy or other issues are reviewed individually for collectability. Account balances are charged off against the allowance when we feel it is probable the receivable will not be recovered. We do not have any off-balance-sheet credit exposure related to our customers. Wireless Equipment Installment Plan ("EIP") Receivables We offer new and existing wireless customers the option to participate in Upgrade Now, a program that provides eligible customers with the ability to purchase certain wireless devices in installments over a period of up to 24 months. Participating customers have the right to trade-in the original equipment for a new device after making the equivalent of 12 monthly installment payments, provided their handset is in good working condition. Upon upgrade, the outstanding balance of the EIP is exchanged for the used handset. At the time of sale, we impute interest on the receivables associated with Upgrade Now. We record the imputed interest as a reduction to the related accounts receivable. Interest income, which is included in Other Income and (Expense) in our Consolidated Statements of Operations, is recognized over the financed installment term. We assess the collectability of our EIP receivables based upon a variety of factors, including payment trends and other qualitative factors. Customers with a credit profile which carries a higher risk are required to make a down payment for equipment financed through Upgrade Now. |
Inventories | Inventories Wireless handset inventories are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. Handset costs in excess of the revenues generated from handset sales, or handset subsidies, are expensed at the time of sale. We do not recognize the expected handset subsidies prior to the time of sale because the promotional discount decision is made at the point of sale and/or because we expect to recover the handset subsidies through service revenue. Inventories of other merchandise for resale and parts are stated at the lower of cost or net realizable value. Cost is determined using the average cost method. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost. Construction costs of facilities are capitalized. Equipment financed under a capital lease is recorded at the lower of fair market value or the present value of future minimum lease payments at inception of the lease. Construction in progress represents transmission equipment and support equipment and systems not placed in service on December 31, 2017 , that management intends to place in service during 2018. Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable, in the following ranges: Asset Category Asset Lives Telephony transmission equipment and distribution facilities 5-20 years Fiber optic cable systems 15-25 years Cable transmission equipment and distribution facilities 5-30 years Support equipment and systems 3-20 years Transportation equipment 5-13 years Property and equipment under capital leases 12-20 years Buildings 25 years Customer premise equipment 2-20 years Studio equipment 10-15 years Amortization of property and equipment under capital leases is included in Depreciation and Amortization Expense in our Consolidated Statements of Operations. Repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments are capitalized. Accumulated depreciation is removed and gains or losses are recognized at the time of sales or other dispositions of property and equipment. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Goodwill, cable certificates (certificates of convenience and public necessity), wireless licenses and broadcast licenses are not amortized. Cable certificates represent certain perpetual operating rights to provide cable services. Wireless licenses represent the right to utilize certain radio frequency spectrum to provide wireless communications services. Broadcast licenses represent the right to broadcast television stations in certain areas. Goodwill represents the excess of cost over fair value of net assets acquired in connection with a business acquisition. All other amortizable intangible assets are being amortized over 2 to 20 year periods using the straight-line method. |
Impairment of Intangibles, Goodwill, and Long-lived Assets | Impairment of Intangibles, Goodwill, and Long-lived Assets Cable certificates, wireless licenses and broadcast licenses are treated as indefinite-lived intangible assets and are tested annually for impairment or more frequently if events and circumstances indicate that the asset might be impaired. We assessed qualitative factors (“Step Zero”) in our annual test over our cable certificate, wireless license and broadcast license assets as of October 31, 2017 and 2016 to determine if it is more likely than not that those intangible assets are impaired and require further analysis. As part of our Step Zero analysis, we considered our own economic position, estimated future growth, and geographic and industry economic outlooks. These estimates and assumptions have a significant impact on our analysis. The quantitative impairment test ("Step One") for identifiable indefinite-lived intangible assets other than goodwill consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. After an impairment loss is recognized, the adjusted carrying amount of the asset becomes its new accounting basis. This approach requires us to make estimates and assumptions including projected cash flows and discount rates. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such impairment charge. Our goodwill is tested annually for impairment, and is tested for impairment more frequently if events and circumstances indicate that the assets might be impaired. We used a Step Zero analysis for goodwill impairment as of October 31, 2017 and 2016 to determine whether it is more likely than not that goodwill is impaired. We considered qualitative factors such as our economic position, estimated future growth, geographic and industry economic outlooks, and the margin by which our fair value exceeded the book value in 2015 as a result of our Step One impairment test in 2015. These estimates and assumptions have a significant impact on our analysis. If it is determined that a goodwill impairment is more likely than not, we use the quantitative two-step process. We completed our annual goodwill and intangibles review and no impairment charge was recorded for the years ended December 31, 2017 , 2016 and 2015 . Long-lived assets, such as property, plant, and equipment, and purchased or developed intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of an asset group to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. |
Amortization and Write-off of Loan Fees and Interest Expense | Amortization and Write-off of Loan Fees Debt issuance costs are deferred and amortized using the effective interest method. If a refinancing or amendment of a debt instrument is a substantial modification, all or a portion of the applicable debt issuance costs are written off. If a debt instrument is repaid prior to the maturity date we will write-off the related unamortized amount of debt issuance costs. Interest Expense Material interest costs incurred during the construction period of non-software capital projects are capitalized. Interest costs incurred during the development period of a software capital project are capitalized. Interest is capitalized in the period commencing with the first expenditure for a qualifying capital project and ending when the capital project is substantially complete and ready for its intended use. |
Other Assets | Other Assets Other Assets primarily include broadcast licenses, equity investments that are accounted for using the equity or cost method, restricted cash, long-term deposits, prepayments, long-term EIP receivables, Universal Service Fund ("USF") high cost receivables, and other long-term non-trade accounts receivable. |
Investments | Investments We hold investments in equity method and cost method investees. Investments in equity method investees are those for which we have the ability to exercise significant influence but do not control and are not the primary beneficiary. Significant influence typically exists if we have a 20% to 50% ownership interest in the venture unless persuasive evidence to the contrary exists. Under this method of accounting, we record our proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Cash payments to equity method investees such as additional investments, loans and advances and expenses incurred on behalf of investees, as well as payments from equity method investees such as dividends, distributions and repayments of loans and advances are recorded as adjustments to investment balances. Investments in entities in which we have no control or significant influence are accounted for under the cost method. We review our investment portfolio each reporting period to determine whether there are events or circumstances that would indicate there is a decline in the fair value that would be considered other than temporary. |
Asset Retirement Obligations | Asset Retirement Obligations We record the fair value of a liability for an asset retirement obligation in the period in which it is incurred in Other Liabilities on the Consolidated Balance Sheets. When the liability is initially recorded, we capitalize a cost by increasing the carrying amount of the related long-lived asset. In periods subsequent to initial measurement, changes in the liability for an asset retirement obligation resulting from revisions to either the timing or the amount of the original estimate of undiscounted cash flows are recognized. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, we either settle the obligation for its recorded amount or incur a gain or loss upon settlement. The majority of our asset retirement obligations are the estimated cost to remove telephony transmission equipment and support equipment from leased property. |
Derivative Financial Instrument | Derivative Financial Instrument We account for our derivative instrument 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 instrument (as described in Note 9 of this Form 10-K) 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) with Related Party. |
Revenue Recognition | Revenue Recognition All revenues are recognized when the earnings process is complete. Revenue recognition is as follows: • Revenues generated from long-distance service usage and plan fees, Internet service excess usage, and managed services are recognized when the services are provided, • We recognize unbilled revenues when the service is provided based upon minutes of use processed, and/or established rates, net of credits and adjustments, • Video service package fees, local access and Internet service plan fees, and data network revenues are billed in advance, recorded as Deferred Revenue on the balance sheet, and are recognized as the associated service is provided, • Certain of our wireless services offerings have been determined to be revenue arrangements with multiple deliverables. Revenues are recognized as each element is earned based on objective evidence regarding the relative fair value of each element and when there are no undelivered elements that are essential to the functionality of the delivered elements. Revenues generated from wireless service usage and plan fees are recognized when the services are provided. Revenues generated from the sale of wireless handsets and accessories are recognized when the amount is known and title to the handset and accessories passes to the customer. As the non-refundable, up-front activation fee charged to the customer does not meet the criteria as a separate unit of accounting, we allocate the additional arrangement consideration received from the activation fee to the handset (the delivered item) to the extent that the aggregate handset and activation fee proceeds do not exceed the fair value of the handset. Any activation fees not allocated to the handset would be deferred upon activation and recognized as service revenue on a straight-line basis over the expected customer relationship period, • We offer new and existing wireless customers the option to participate in Upgrade Now, a program that is described above in Note 1(m) of this Form 10-K. Upgrade Now is a multiple-element arrangement typically consisting of the trade-in right, handset, and one month of wireless service. At the inception of the arrangement, revenue is allocated between the separate units of accounting based upon each components' relative selling price on a standalone basis. This is subject to the requirement that revenue recognized is limited to the amounts already received from the customer that are not contingent on the delivery of additional products or services to the customer in the future. We recognize the full amount of the fair value of the trade-in right (not an allocated value) as a guarantee liability and the remaining allocable consideration is allocated to the handset and wireless service. We recognize revenue for the entire amount of the EIP receivable at the time of sale, net of the fair value of the trade-in right guarantee and imputed interest. See also in Note 1(ag) of this Form 10-K additional information on guarantee liabilities and EIP receivables. • The majority of our non-wireless equipment sale transactions involve the sale of communications equipment with no other services involved. Such equipment is subject to standard manufacturer warranties and we do not manufacture any of the equipment we sell. In such instances, the customer takes title to the equipment generally upon delivery. We recognize revenue for such transactions when title passes to the customer and the revenue is earned and realizable. On certain occasions we enter into agreements to sell and satisfactorily install or integrate telecommunications equipment for a fixed fee. Customers may have refund rights if the installed equipment does not meet certain performance criteria. We defer revenue recognition until we have received customer acceptance per the contract or agreement, and all other required revenue recognition elements have been achieved. Revenues from contracts with multiple element arrangements, such as those including installation and integration services, are recognized as each element is earned based on objective evidence regarding the relative fair value of each element and when there are no undelivered elements that are essential to the functionality of the delivered elements, • Technical services revenues are derived primarily from maintenance contracts on equipment and are recognized on a prorated basis over the term of the contracts, • We account for fiber capacity Indefeasible Right to Use ("IRU") agreements as an operating lease or service arrangement and we defer the revenue and recognize it ratably over the life of the IRU or as service is rendered, • Access revenue is recognized when earned. We participate in an intrastate access revenue pool with other telephone companies. The pool is funded by access charges regulated by the Regulatory Commission of Alaska ("RCA") within the intrastate jurisdiction These revenues are subject to adjustment in future accounting periods as based upon adjustments made by all pool participants and Interexchange carrier customers. To the extent that a dispute arises over revenue settlements, our policy is to defer revenue recognition until the dispute is resolved, • We receive grant revenue for the purpose of building or operating communication infrastructure in rural areas. We defer the revenue and recognize it over the life of the asset that was constructed using grant funds or the period of grant compliance, • We offer sales incentives to new and existing customers as motivation to purchase our products and services. Cash incentives are recorded as an offset to revenue while noncash incentives are recorded as an operating expense. Sales incentives that relate to a customer contract over a specific period of time are recognized using the straight-line method over the contract term. For sales incentives that are earned by the customer over a specific period of time, we accrue an estimated offset to revenue or expense amount over the period that the incentive is earned by the customer, • Other revenues are recognized when the service is provided. Universal Service Fund As an Eligible Telecommunications Carrier ("ETC"), we receive support from the USF to support the provision of wireline local access and wireless service in high cost areas. On August 31, 2016, the FCC published a Report and Order to reform the methodology for distributing USF high cost support for both wireline and wireless voice and broadband service (“Alaska High Cost Order”). The Alaska High Cost Order was a significant program change that required a reassessment of our high cost support revenue recognition. Remote High Cost Support Prior to the Alaska High Cost Order, we accrued estimated program revenue based on current line counts and the frozen per-line rates, reduced as needed by our estimate of the impact of a statewide support cap. Additionally, we also considered our assessment of the impact of current FCC regulations and of the potential outcome of FCC proceedings. As of January 1, 2017, Remote high cost support payments to Alaska High Cost participants are frozen on a per-company basis at adjusted December 2014 levels for a ten-year term in exchange for meeting individualized performance obligations to offer voice and broadband services meeting the service obligations at specified minimum speeds by five-year and ten-year service milestones to a specified number of locations. Remote high cost support is no longer dependent upon line counts and line count filings are no longer required. As a result of the Alaska High Cost Order, we applied the proportional performance revenue recognition method to account for the transition from accruals based on line counts to a fixed payment stream while our level of service provided and associated costs remain constant. Included in the calculation are the scheduled Remote high cost support payments from September 2016 through January 2027 net of our Remote accounts receivable balance at August 31, 2016. An equal amount of this result is recognized as Remote support revenue each period. In 2022, the FCC may redistribute support in areas with duplicative LTE service. We will account for any changes made by the FCC to redistribute support prospectively. Urban High Cost Support Prior to the Alaska High Cost Order, Urban high cost support payments were frozen and had phased down to 60% of the monthly average of the 2011 annual support. The Alaska High Cost Order mandated that as of January 1, 2017, Urban high cost support for 2017 and 2018 would be two-thirds and one-third of the December 2014 level of support received, respectively, with Urban high cost support ending effective December 31, 2018. We applied the proportional performance revenue recognition method to account for the impact of the declining payments while our level of service provided and associated costs remain constant. Included in the calculation are the scheduled Urban high cost support payments from September 2016 through January 2019 net of our Urban accounts receivable balance at August 31, 2016. An equal amount of this result is recognized as Urban support revenue each period. For both Remote and Urban high cost support revenue, our ability to collect our accrued USF support is contingent upon continuation of the USF program and upon our eligibility to participate in that program, which are subject to change by future regulatory, legislative or judicial actions. We adjust revenue and the account receivable in the period the FCC makes a program change or we assess the likelihood that such a change has increased or decreased revenue. We do not recognize revenue related to a particular service area until our ETC status has been approved by the RCA. We recorded high cost support revenue under the USF program of $62.9 million , $64.1 million and $66.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. At December 31, 2017 , we have $41.0 million in high cost accounts receivable. Rural Health Care (“RHC”) Program For the funding year that ran from July 1, 2016 through June 30, 2017, USAC received requests for funds that exceeded the funding available for the RHC Program. USAC allocated the funding on a pro-rata basis to rural health care providers who submitted their funding requests during a certain period. We provide services to rural health care providers who were impacted by the pro-rata allocation and as a result certain of our customers did not receive the full subsidy that was expected under the program. Under the program rules, we are forbidden from lowering our rates for services previously provided, however, the Federal Communications Commission ("FCC") published an order on June 30, 2017 to assist eligible remote Alaska rural health care providers by allowing Alaska service providers, such as us, to retroactively lower their rates, or effectively giving a credit against amounts owed, for services provided. Based on these specific circumstances, we decided to retroactively lower our rates to these customers pursuant to the FCC waiver, and as a result we reduced revenue by $5.5 million during the year ended December 31, 2017, to aid our rural health care provider customers who were impacted by the pro-rata allocation. |
Advertising Expense | Advertising Expense We expense advertising costs in the period during which the first advertisement appears. |
Leases | Leases Scheduled operating lease rent increases are amortized over the expected lease term on a straight-line basis. Rent holidays are recognized on a straight-line basis over the operating lease term (including any rent holiday period). Leasehold improvements are amortized over the shorter of their economic lives or the lease term. We may amortize a leasehold improvement over a term that includes assumption of a lease renewal if the renewal is reasonably assured. Leasehold improvements acquired in a business combination are amortized over the shorter of the useful life of the assets or a term that includes required lease periods and renewals that are deemed to be reasonably assured at the date of acquisition. Leasehold improvements that are placed in service significantly after and are not contemplated at or near the beginning of the lease term are amortized over the shorter of the useful life of the assets or a term that includes required lease periods and renewals that are deemed to be reasonably assured at the date the leasehold improvements are purchased. Leasehold improvements made by us and funded by landlord incentives or allowances under an operating lease are recorded as deferred rent and amortized as reductions to lease expense over the lease term. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for their future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable earnings in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recognized if it is more likely than not that some portion or the entire deferred tax asset will not be realized. |
Share-based Payment Arrangements | Share-based Payment Arrangements Compensation expense is recognized in the financial statements for share-based awards based on the grant date fair value of those awards. The fair value of restricted stock awards is determined based on the number of shares granted and the quoted price of GCI's common stock. Share-based compensation expense is recognized over the requisite service periods of the awards on a straight-line basis, which is generally commensurate with the vesting term. We are required to report the benefits associated with tax deductions in excess of recognized compensation cost as an operating cash flow. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. By their nature, these judgments are subject to an inherent degree of uncertainty. These judgments are based on our historical experience, terms of existing contracts, observance of trends, and other factors, as appropriate. Additionally, changes in accounting estimates are reasonably likely to occur from period to period. These factors could have a material impact on our financial statements. Significant estimates include, but are not limited to, the following: revenue recognition, the valuation of the derivative stock appreciation rights, impairment and useful lives of intangible assets, and the valuation allowance for net operating loss deferred tax assets. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and accounts receivable. Excess cash is invested in high quality short-term liquid money instruments. At December 31, 2017 , and 2016 , substantially all of our cash and cash equivalents were invested in short-term liquid money instruments and the balances were in excess of Federal Deposit Insurance Corporation insured limits. Our customers are located primarily throughout Alaska. Because of this geographic concentration, our growth and operations depend upon economic conditions in Alaska. |
Software Capitalization Policy | Software Capitalization Policy Internally used software, whether developed or purchased and installed as is, is capitalized and amortized using the straight-line method over an estimated useful life of three to five years . We capitalize certain costs associated with internally developed software such as payroll costs of employees devoting time to the projects and external direct costs for materials and services. Costs associated with internally developed software to be used internally are expensed until the point the project has reached the development stage. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed in the period in which they are incurred. The capitalization of software requires judgment in determining when a project has reached the development stage. We have Software as a Service ("SaaS") arrangements which are accounted for as service agreements, and are not capitalized. Internal and other third party costs for SaaS arrangements are expensed as incurred. Data migration costs for such arrangements are expensed consistent with the same type of costs for internally developed and modified software. Additionally, configuration costs paid to the vendor are recorded as a prepaid expense and expensed over the term of the SaaS arrangement. |
Guarantees | Guarantees Certain of our customers have guaranteed levels of service. If an interruption in service occurs, we do not recognize revenue for any portion of the monthly service fee that will be refunded to the customer or not billed to the customer due to these service level agreements. Additionally, we have provided certain guarantees to U.S. Bancorp Community Development Corporation (“US Bancorp”), our tax credit investor in our seven VIEs. We have guaranteed the delivery of $65.8 million of New Markets Tax Credits (“NMTC”) to US Bancorp, as well as certain loan and management fee payments between our subsidiaries and the VIEs, for which we are the primary beneficiary. In the event that the tax credits are not delivered or certain payments not made, we are obligated to provide prompt and complete payment of these obligations. See Note 14 of this Form 10-K for more information about our NMTC transactions. EIP Trade-in Right We offer a device trade-in program, "Upgrade Now", which provides eligible customers a specified-price trade-in right to upgrade their device. Participating customers must have purchased a financed device using an equipment installment plan from us and have a qualifying monthly wireless service plan. Upon qualifying for an Upgrade Now device trade-in, the customer's remaining EIP balance is settled provided they trade in their eligible used device in good working condition and purchase a new device from us on a new EIP. For customers who enroll in Upgrade Now, we defer the portion of equipment sales revenue which represents the estimated value of the trade-in right guarantee. The estimated value of the guarantees are based on various economic and customer behavioral assumptions, including the customer's estimated remaining EIP balance at trade-in, the expected fair value of the used handset at trade-in and the probability and timing of a trade-in. We assess facts and circumstances at each reporting date to determine if we need to adjust the guarantee liability. The recognition of subsequent adjustments to the guarantee liability as a result of these assessments are recorded as adjustments to revenue. When customers upgrade their devices, the difference between the trade-in credit to the customer and the fair value of the returned devices is recorded against the guarantee liabilities. Guarantee liabilities are included in Accrued Liabilities in our Consolidated Balance Sheets. |
Classification of Taxes Collected from Customers | Classification of Taxes Collected from Customers We report sales, use, excise, and value added taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction between us and a customer on a net basis in our Consolidated Statements of Operations. |
Reclassifications | Reclassifications Reclassifications have been made to the prior years' consolidated financial statements to conform to classifications used in the current year. |
Business and Summary of Signi26
Business and Summary of Significant Accounting Principles (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Consideration Transferred to Acquire Assets and Interest | The following table summarizes the allocation of total consideration transferred to ACS between the AWN NCI Acquisition and the Acquired ACS Assets excluding working capital adjustments (amounts in thousands): Total consideration transferred to ACS $ 304,838 Allocation of consideration between wireless assets and non-controlling interest acquired: AWN non-controlling interest $ 303,831 Property and equipment 746 Other intangible assets 261 Total consideration $ 304,838 |
Summary of Impact of AWN NCI Acquisition | The impact of the AWN NCI Acquisition is summarized in the following table (amounts in thousands): Reduction of non-controlling interest $ 268,364 Increase in deferred tax assets 8,445 Additional paid-in capital 27,022 Fair value of consideration paid for acquisition of equity interest $ 303,831 |
Schedule of Property Plant And Equipment Useful Life | Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable, in the following ranges: Asset Category Asset Lives Telephony transmission equipment and distribution facilities 5-20 years Fiber optic cable systems 15-25 years Cable transmission equipment and distribution facilities 5-30 years Support equipment and systems 3-20 years Transportation equipment 5-13 years Property and equipment under capital leases 12-20 years Buildings 25 years Customer premise equipment 2-20 years Studio equipment 10-15 years |
Reconciliation of Asset Retirement Obligations | Following is a reconciliation of the beginning and ending aggregate carrying amounts of our liability for asset retirement obligations (amounts in thousands): Balance at December 31, 2015 $ 35,060 Liability incurred 1,580 Revisions in estimated cash flows, including adjustment from Tower Transaction (Note 2) 3,368 Accretion expense 1,229 Liability settled (82 ) Balance at December 31, 2016 41,155 Liability incurred 4,655 Revisions in estimated cash flows (85 ) Accretion expense 1,772 Liability settled (163 ) Balance at December 31, 2017 $ 47,334 |
Surcharges Reported on Gross Basis | The following are certain surcharges reported on a gross basis in our Consolidated Statements of Operations (amounts in thousands): Years Ended December 31, 2017 2016 2015 Surcharges reported gross $ 3,226 3,849 5,058 |
Tower Sale and Leaseback (Table
Tower Sale and Leaseback (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Tower Sale and Leaseback [Abstract] | |
Summary of Impact of Sale Leaseback Transactions | The following table summarizes the impacts to the Consolidated Balance Sheets (amounts in thousands): December 31, 2017 December 31, 2016 Property and equipment, net (1) $ 19,094 $ 18,792 Tower obligations (2) $ 93,606 $ 87,653 (1) Property conveyed to Vertical Bridge as part of the Tower Transaction, but remains on our Consolidated Balance Sheets. (2) Excluding current portion and net of deferred transaction costs. |
Schedule of Future Minimum Lease Payments for Tower Obligation | Future minimum payments related to the Tower Obligations, including expected renewals and excluding deferred transaction costs, are summarized below (amounts in thousands): Years ending December 31, Total 2018 $ 7,465 2019 7,615 2020 7,767 2021 7,922 2022 8,081 2023 and thereafter 149,300 Total minimum payments 188,150 Less amount representing interest 91,978 Tower obligations $ 96,172 A summary of future minimum lease payments follows (amounts in thousands): Years ending December 31: Operating Capital 2018 $ 48,409 13,440 2019 38,293 13,450 2020 27,566 13,459 2021 19,806 12,044 2022 11,715 5,293 2023 and thereafter 28,298 2,411 Total minimum lease payments $ 174,087 60,097 Less amount representing interest 9,781 Less current maturity of obligations under capital leases 10,028 Long-term obligations under capital leases, excluding current maturity $ 40,288 |
Consolidated Statements of Ca28
Consolidated Statements of Cash Flows Supplemental Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Changes in Operating Assets and Liabilities | Changes in operating assets and liabilities consist of (amounts in thousands): Year ended December 31, 2017 2016 2015 (Increase) decrease in accounts receivable, net $ (4,277 ) 27,453 (4,230 ) Increase in prepaid expenses (2,590 ) (6,180 ) (632 ) (Increase) decrease in inventories (1,051 ) (623 ) 5,710 (Increase) decrease in other current assets 109 (38 ) 24 Increase in other assets (10,419 ) (47,105 ) (11,491 ) Decrease in accounts payable (1,735 ) (135 ) (5,579 ) Increase in deferred revenues 429 2,446 1,743 Increase (decrease) in accrued payroll and payroll related obligations 1,579 (979 ) (1,469 ) Increase (decrease) in accrued liabilities (583 ) (8,031 ) 8,192 Increase in accrued interest 49 271 7,001 Increase (decrease) in subscriber deposits 354 (325 ) (448 ) Increase (decrease) in long-term deferred revenue (5,355 ) 18,649 (8,561 ) Increase (decrease) in components of other long-term liabilities (780 ) (230 ) 1,305 Total change in operating assets and liabilities $ (24,270 ) (14,827 ) (8,435 ) |
Cash Payments for Interest | The following items are for the years ended December 31, 2017 , 2016 and 2015 (amounts in thousands): Net cash paid or received: 2017 2016 2015 Interest paid, net of amounts capitalized $ 90,998 84,546 76,796 |
Non-cash Investing and Financing Activities | The following items are non-cash investing and financing activities for the years ended December 31, 2017 , 2016 and 2015 (amounts in thousands): 2017 2016 2015 Non-cash additions for purchases of property and equipment $ 20,630 36,854 26,799 Asset retirement obligation additions to property and equipment $ 4,655 4,948 2,048 Non-cash consideration for KKCC assets $ — 13,993 — Non-cash consideration for Wireless Acquisition $ — — 23,326 |
Receivables and Allowance for29
Receivables and Allowance for Doubtful Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Receivables by Type | Receivables consist of the following at December 31, 2017 and 2016 (amounts in thousands): 2017 2016 Trade $ 187,000 182,993 Other 1,580 1,303 Total receivables $ 188,580 184,296 |
Changes in the Allowance for Doubtful Receivables | Changes in the allowance for doubtful receivables during the years ended December 31, 2017 , 2016 and 2015 are summarized below (amounts in thousands): Additions Deductions Description Balance at beginning of year Charged to costs and expenses Charged to other accounts Write-offs net of recoveries Balance at end of year December 31, 2017 $ 4,407 5,800 — 6,215 3,992 December 31, 2016 $ 3,630 8,516 — 7,739 4,407 December 31, 2015 $ 4,542 6,359 — 7,271 3,630 |
Net Property and Equipment (Tab
Net Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Net Property and Equipment in Service | Net property and equipment consists of the following at December 31, 2017 and 2016 (amounts in thousands): 2017 2016 Land and buildings $ 119,553 114,966 Telephony transmission equipment and distribution facilities 1,402,610 1,271,425 Cable transmission equipment and distribution facilities 285,665 231,539 Studio equipment 14,825 15,456 Support equipment and systems 299,511 290,209 Transportation equipment 23,468 23,674 Customer premise equipment 152,731 158,513 Fiber optic cable systems 353,291 351,460 Construction in progress 103,013 157,633 2,754,667 2,614,875 Less accumulated depreciation 1,541,264 1,385,620 Less accumulated amortization on property and equipment under capital leases 58,692 67,337 Net property and equipment $ 1,154,711 1,161,918 Gross property and equipment under capital leases $ 112,495 112,495 |
Schedule of Consideration Transferred to Acquire Assets and Liabilities | The following table summarizes the allocation of total consideration (amounts in thousands): Allocation of consideration to assets acquired and liabilities assumed: Property and equipment $ 49,794 Deferred taxes (12,211 ) Deferred revenue (3,815 ) Total consideration $ 33,768 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization | Other Intangible Assets subject to amortization include the following at December 31, 2017 and 2016 (amounts in thousands): 2017 2016 Software license fees $ 87,989 80,839 Rights to use 45,114 45,114 Customer relationships 4,221 1,530 Right-of-way 784 784 Trade name 252 — 138,360 128,267 Less accumulated amortization 62,663 53,823 Net other intangible assets $ 75,697 74,444 |
Changes in Goodwill and Other Intangible Assets | Changes in Goodwill and Other Intangible Assets are as follows (amounts in thousands): Goodwill Other Intangible Assets Balance at December 31, 2015 $ 239,263 69,290 Asset additions — 17,601 Amortization expense — (12,447 ) Balance at December 31, 2016 239,263 74,444 Additions from acquisitions 3,001 2,943 Asset additions — 11,546 Amortization expense — (13,164 ) Asset deletions — (72 ) Balance at December 31, 2017 $ 242,264 75,697 |
Schedule of Amortization Expense | Amortization expense for definite-life intangible assets for the years ended December 31, 2017 , 2016 and 2015 follow (amounts in thousands): Years Ended December 31, 2017 2016 2015 Amortization expense $ 13,164 12,447 10,442 |
Amortization Expense for Definite-Life Intangible Assets | Amortization expense for definite-life intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in thousands): Years Ending December 31, 2018 $ 12,695 2019 $ 10,234 2020 $ 8,188 2021 $ 5,855 2022 $ 3,829 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following (amounts in thousands): December 31, Issue Date Interest Rate Principal Payments Maturity Date 2017 2016 Senior Credit Facility - Term Loan B November 17, 2016 LIBOR plus 2.25% 0.25% of the original principal due quarterly February 2, 2022 1 $ 242,583 245,187 Senior Credit Facility - Term Loan A November 17, 2016 LIBOR plus applicable margin 2 Due at maturity November 17, 2021 1 215,000 215,000 Senior Credit Facility - Revolver November 17, 2016 LIBOR plus applicable margin 2 Due at maturity November 17, 2021 1 100,000 55,000 2025 Notes April 1, 2015 6.875% Due at maturity April 15, 2025 3 450,000 450,000 2021 Notes May 20, 2011 6.75% Due at maturity June 1, 2021 4 325,000 325,000 Searchlight note February 2, 2015 7.5% Due at maturity February 2, 2023 5 75,000 75,000 Wells Fargo note June 30, 2014 LIBOR plus 2.25% Monthly installments July 15, 2029 8,048 8,596 Total Debt 1,415,631 1,373,783 Less unamortized discount 19,466 21,878 Less unamortized deferred loan fees 14,117 15,133 Less current portion of long-term debt 2,989 3,326 Long-term debt, net $ 1,379,059 1,333,446 1 The Senior Credit Facility will mature on December 3, 2020 if our 2021 Notes are not refinanced prior to such date. 2 Applicable margin is based on the company’s leverage ratio and ranges from 2.00% to 3.00%. Our Senior Credit Facility Total Leverage Ratio (as defined) may not exceed 5.95 to one; the Senior Leverage Ratio (as defined) may not exceed 3.00 to one; and our Interest Coverage Ratio (as defined) must not be less than 2.50 to one at any time. 3 The notes are redeemable at our option, in whole or in part, at a redemption price defined in the 2025 Notes agreement, and accrued and unpaid interest (if any) to the date of redemption. 4 The notes are redeemable at our option, in whole or in part, at a redemption price defined in the 2021 Notes agreement, and accrued and unpaid interest (if any) to the date of redemption. 5 We may repay the Searchlight note beginning February 2, 2019. |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt as of December 31, 2017 are as follows (amounts in thousands): Years ending December 31, 2018 $ 2,989 2019 3,010 2020 3,030 2021 643,053 2022 233,365 2023 and thereafter 530,184 Total debt 1,415,631 Less unamortized discount 19,466 Less unamortized deferred loan fees 14,117 Less current portion of long-term debt 2,989 Long-term debt, net $ 1,379,059 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax (Expense) Benefit | Income tax (expense) benefit consists of the following (amounts in thousands): Years Ended December 31, 2017 2016 2015 Deferred tax (expense) benefit: Federal taxes $ 41,531 (4,452 ) 1,360 State taxes (105 ) (753 ) 487 $ 41,426 (5,205 ) 1,847 |
Schedule of Effective Income Tax Rate Reconciliation | Total income tax (expense) benefit differed from the “expected” income tax (expense) benefit determined by applying the statutory federal income tax rate of 35% as follows (amounts in thousands): Years Ended December 31, 2017 2016 2015 “Expected” statutory tax (expense) benefit $ 23,152 (374 ) 9,699 Tax reform rate change 41,626 — — Nondeductible unrealized loss on derivative instrument with related party (17,021 ) 1,092 (3,906 ) Employee's excess tax benefit for stock based compensation 3,397 — — Nondeductible officer compensation (3,074 ) (1,424 ) (1,906 ) Nondeductible transaction costs (2,760 ) — — Nondeductible entertainment expenses (1,141 ) (1,029 ) (1,059 ) Nondeductible original issue discount (850 ) (773 ) (660 ) Nondeductible lobbying expenses (345 ) (1,192 ) (442 ) State income taxes, net of federal (expense) benefit (105 ) (753 ) 487 Impact of non-controlling interest attributable to non-tax paying entity — — 220 Other, net (1,453 ) (752 ) (586 ) $ 41,426 (5,205 ) 1,847 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities at December 31, 2017 and 2016 are summarized below (amounts in thousands): 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 104,617 111,236 Deferred revenue for financial reporting purposes 44,853 59,993 Asset retirement obligations in excess of amounts recognized for tax purposes 13,328 16,808 Compensated absences accrued for financial reporting purposes 2,825 3,505 Share-based compensation expense for financial reporting purposes in excess of amounts recognized for tax purposes 2,629 3,393 Accounts receivable, principally due to allowance for doubtful receivables 1,023 1,965 Workers compensation and self-insurance health reserves, principally due to accrual for financial reporting purposes 1,523 1,705 Alternative minimum tax credits 1,735 1,735 Deferred compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes 1,370 1,687 Other 5,671 11,515 Total deferred tax assets $ 179,574 213,542 Deferred tax liabilities: Plant and equipment, principally due to differences in depreciation $ 192,413 245,118 Intangible assets 77,455 106,061 Other 277 345 Total deferred tax liabilities 270,145 351,524 Net deferred tax liabilities $ 90,571 137,982 |
Summary of Operating Loss Carryforwards | Our tax net operating loss carryforwards are summarized below by year of expiration (amounts in thousands): Years ending December 31, Federal State 2020 $ 1,530 1,505 2021 29,615 27,814 2022 14,081 13,850 2023 3,968 3,903 2024 722 710 2025 1,536 1,511 2026 663 652 2027 1,010 993 2028 39,879 39,226 2029 46,537 45,756 2031 104,101 102,639 2033 5,073 4,968 2034 38,561 37,312 2035 13,415 12,743 2036 282 268 2037 70,195 66,850 Total tax net operating loss carryforwards $ 371,168 360,700 |
Fair Value Measurements and D34
Fair Value Measurements and Derivative Instrument (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 December 31, 2017 and 2016 are as follows (amounts in thousands): December 31, 2017 Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Deferred compensation plan assets (mutual funds) $ 1,323 — — 1,323 Liabilities: Derivative stock appreciation rights $ — — 78,330 78,330 December 31, 2016 Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Deferred compensation plan assets (mutual funds) $ 1,477 — — 1,477 Liabilities: Derivative stock appreciation rights $ — — 29,700 29,700 (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 December 31, 2017 and 2016 are as follows (amounts in thousands): December 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Current and long-term debt $ 1,382,048 1,458,106 1,336,772 1,393,865 |
Significant Assumptions and Inputs on Stock Appreciation Right Liability | The following table shows our significant assumptions and inputs used in the lattice-based valuation model to value the stock appreciation right liability at December 31, 2017 and 2016 : 2017 2016 Contractual term (in years) 1.1 - 5.1 2.1 - 6.1 Volatility 25% to 37.5% 37.5 % Risk-free interest rate 1.3 to 2.2% 2.1 % Stock Price $ 39.02 $ 19.45 |
Changes in Fair Value of Financial Instruments on Recurring Basis | 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 years ended December 31, 2017 , 2016, and 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) 11,160 Balance at December 31, 2015 $ 32,820 Fair value adjustment at end of period, included in Other Income (Expense) (3,120 ) Balance at December 31, 2016 $ 29,700 Fair value adjustment at end of period, included in Other Income (Expense) 48,630 Balance at December 31, 2017 $ 78,330 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Restricted Stock Award Activity | A summary of nonvested restricted stock award activity under the Stock Option Plan for the year ended December 31, 2017 , follows (share amounts in thousands): Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2016 1,465 $ 14.41 Granted 607 $ 23.24 Vested (894 ) $ 16.22 Forfeited (5 ) $ 18.48 Nonvested at December 31, 2016 1,173 $ 17.58 |
Earnings (Loss) per Common Sh36
Earnings (Loss) per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted EPS | Earnings 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): Year Ended December 31, 2017 Class A-1 Class B-1 Basic net loss per share: Numerator: Undistributed loss allocable to common stockholders (22,074 ) (2,172 ) Denominator: Weighted average common shares outstanding 31,344 3,083 Basic net loss attributable to GCI common stockholders per common share $ (0.70 ) (0.70 ) Diluted net loss per share: Numerator: Undistributed loss allocable to common stockholders for basic computation $ (22,074 ) (2,172 ) Reallocation of undistributed loss as a result of conversion of Class B-1 to Class A-1 shares (2,172 ) — Net loss adjusted for allocation of undistributed earnings and effect of contracts that may be settled in cash or shares $ (24,246 ) (2,172 ) Denominator: Number of shares used in basic computation 31,344 3,083 Conversion of Class B-1 to Class A-1 common shares outstanding 3,083 — Number of shares used in per share computation 34,427 3,083 Diluted net loss attributable to GCI common stockholders per common share $ (0.70 ) (0.70 ) Years Ended December 31, 2016 2015 Class A-1 Class B-1 Class A-1 Class B-1 Basic net loss per share: Numerator: Undistributed loss allocable to common stockholders $ (3,343 ) (324 ) (23,858 ) (2,167 ) Denominator: Weighted average common shares outstanding 32,526 3,154 34,764 3,157 Basic net loss attributable to GCI common stockholders per common share $ (0.10 ) (0.10 ) (0.69 ) (0.69 ) Diluted net loss per share: Numerator: Undistributed loss allocable to common stockholders for basic computation $ (3,343 ) (324 ) (23,858 ) (2,167 ) Reallocation of undistributed loss as a result of conversion of Class B-1 to Class A-1 shares (324 ) — (2,167 ) — Reallocation of undistributed loss as a result of conversion of dilutive securities — (154 ) — — Effect of derivative instrument that may be settled in cash or shares (1,837 ) — — — Effect of share based compensation that may be settled in cash or shares (5 ) — — — Net loss adjusted for allocation of undistributed loss and effect of contracts that may be settled in cash or shares $ (5,509 ) (478 ) (26,025 ) (2,167 ) Denominator: Number of shares used in basic computation 32,526 3,154 34,764 3,157 Conversion of Class B-1 to Class A-1 common shares outstanding 3,154 — 3,157 — Effect of derivative instrument that may settled in cash or shares 612 — — — Effect of share based compensation that may be settled in cash or shares 26 — — — Number of shares used in per share computation 36,318 3,154 37,921 3,157 Diluted net loss attributable to GCI common stockholders per common share $ (0.15 ) (0.15 ) (0.69 ) (0.69 ) |
Schedule of Antidilutive Securities Excluded from Computation of EPS | Weighted average shares associated with outstanding securities for the years ended December 31, 2017 , 2016 and 2015 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): Years Ended December 31, 2017 2016 2015 Derivative instrument that may be settled in cash or shares 1,870 — 724 Shares associated with unexercised stock options 1 3 108 Share-based compensation that may be settled in cash or shares 26 — 26 Total excluded 1,897 3 858 |
Industry Segments Data (Tables)
Industry Segments Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Revenues by Customer and Service Type | Revenues summarized by customer and service type for the years ended December 31, 2017, 2016, and 2015 follows (amounts in thousands): 2017 2016 2015 Consumer Business Total Consumer Business Total Consumer Business Total Revenues Wireless 167,733 104,614 272,347 177,801 105,355 283,156 199,862 151,710 351,572 Data 145,757 308,480 454,237 140,196 296,202 436,398 130,213 269,472 399,685 Video 99,609 18,039 117,648 107,305 20,102 127,407 115,074 18,819 133,893 Voice 23,783 51,189 74,972 26,734 60,117 86,851 30,110 63,274 93,384 Total 436,882 482,322 919,204 452,036 481,776 933,812 475,259 503,275 978,534 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Key Terms of NMTC Transactions | The following table summarizes the key terms of each of the NMTC transactions: Financing Arrangement Investment Funds Transaction Date Loan Amount Interest Rate on Loan to Investment Fund Maturity Date US Bancorp Investment Loan to Unicom Interest Rate on Loan(s) to Unicom Expected Put Option Exercise NMTC #1 TIF August 30, 2011 $58.3 million 1% August 30, 2041 $22.4 million $76.8 million 1% to 3.96% August 2018 NMTC #2 TIF 2 & TIF 2-USB October 3, 2012 $37.7 million 1% October 2, 2042 $17.5 million $55.2 million 0.71% to 0.77% October 2019 NMTC #3 TIF 3 December 11, 2012 $8.2 million 1% December 10, 2042 $3.8 million $12.0 million 1.35% December 2019 NMTC #4 TIF 4 March 21, 2017 $6.7 million 1% March 21, 2040 $3.3 million $9.8 million 0.73% March 2024 NMTC #5 TIF 5-1 and TIF 5-2 December 22, 2017 $10.4 million 1% December 22, 2047 $5.1 million $14.7 million 0.67% to 1.24% December 2024 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum payments related to the Tower Obligations, including expected renewals and excluding deferred transaction costs, are summarized below (amounts in thousands): Years ending December 31, Total 2018 $ 7,465 2019 7,615 2020 7,767 2021 7,922 2022 8,081 2023 and thereafter 149,300 Total minimum payments 188,150 Less amount representing interest 91,978 Tower obligations $ 96,172 A summary of future minimum lease payments follows (amounts in thousands): Years ending December 31: Operating Capital 2018 $ 48,409 13,440 2019 38,293 13,450 2020 27,566 13,459 2021 19,806 12,044 2022 11,715 5,293 2023 and thereafter 28,298 2,411 Total minimum lease payments $ 174,087 60,097 Less amount representing interest 9,781 Less current maturity of obligations under capital leases 10,028 Long-term obligations under capital leases, excluding current maturity $ 40,288 |
Selected Quarterly Financial 40
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2017 and 2016 (amounts in thousands, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2017 Total revenues $ 228,115 224,346 231,214 235,529 Operating income $ 15,346 11,031 24,174 20,699 Net income (loss) $ (55,246 ) (9,000 ) (8,849 ) 48,373 Net income (loss) attributable to GCI $ (55,129 ) (8,882 ) (8,731 ) 48,496 Basic net income (loss) attributable to GCI per common share $ (1.60 ) (0.26 ) (0.25 ) 1.35 Diluted net income (loss) attributable to GCI per common share $ (1.60 ) (0.26 ) (0.25 ) 1.19 2016 Total revenues $ 231,098 233,766 236,655 232,293 Operating income $ 20,019 19,531 26,368 13,185 Net income (loss) $ 982 3,298 7,827 (16,243 ) Net income (loss) attributable to GCI $ 1,099 3,415 7,943 (16,124 ) Basic net income (loss) attributable to GCI per common share $ 0.03 0.09 0.21 (0.47 ) Diluted net income (loss) attributable to GCI per common share $ (0.04 ) (0.01 ) 0.14 (0.47 ) |
Business and Summary of Signi41
Business and Summary of Significant Accounting Principles (Basis of Presentation and Principles of Consolidation) (Details) - entity | 12 Months Ended | |
Dec. 31, 2017 | Feb. 02, 2015 | |
Business Acquisition [Line Items] | ||
Number of VIEs | 7 | |
AWN | ||
Business Acquisition [Line Items] | ||
Percentage of voting interests acquired | 33.33% | |
AWN | ||
Business Acquisition [Line Items] | ||
Ownership percentage | 66.67% |
Business and Summary of Signi42
Business and Summary of Significant Accounting Principles (Wireless Acquisition Narrative) (Details) - USD ($) $ in Millions | Feb. 02, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Noncontrolling Interest [Line Items] | |||
Payments to acquire assets and interest | $ 293.2 | ||
Other Income (Expense) | |||
Noncontrolling Interest [Line Items] | |||
Gain from adjustment to fair value | $ 3.1 | ||
Other Income (Expense) | Rights to Receive Future Capacity | |||
Noncontrolling Interest [Line Items] | |||
Gain from adjustment to fair value | $ 1.2 | ||
Other Income (Expense) | Rights to Use Capacity | |||
Noncontrolling Interest [Line Items] | |||
Impairment of intangible assets | $ 3.8 |
Business and Summary of Signi43
Business and Summary of Significant Accounting Principles (Allocation of Total Consideration Transferred to ACS) (Details) $ in Thousands | Feb. 02, 2015USD ($) |
Accounting Policies [Abstract] | |
Total consideration transferred to ACS | $ 304,838 |
Allocation of consideration between wireless assets and non-controlling interest acquired: | |
AWN non-controlling interest | 303,831 |
Property and equipment | 746 |
Other intangible assets | 261 |
Total consideration | $ 304,838 |
Business and Summary of Signi44
Business and Summary of Significant Accounting Principles (Impact of AWN NCI Acquisition) (Details) - USD ($) $ in Thousands | Feb. 02, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Noncontrolling Interest [Line Items] | ||||
Reduction of non-controlling interest | $ 1,138 | $ 14,445 | $ 281,803 | |
Increase in deferred tax assets | $ 8,445 | |||
Fair value of consideration paid for acquisition of equity interest | 303,831 | |||
Non-controlling Interests | ||||
Noncontrolling Interest [Line Items] | ||||
Reduction of non-controlling interest | 268,364 | 271,521 | ||
Additional paid-in capital | ||||
Noncontrolling Interest [Line Items] | ||||
Reduction of non-controlling interest | $ 27,022 | $ 1,138 | $ 14,445 | $ 10,282 |
Business and Summary of Signi45
Business and Summary of Significant Accounting Principles (Other Acquisitions) (Details) - Series of Individually Immaterial Business Acquisitions $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)entity | |
Business Acquisition [Line Items] | |
Number of businesses acquired | entity | 3 |
Consideration transferred | $ | $ 12.7 |
Business and Summary of Signi46
Business and Summary of Significant Accounting Principles (Recently Issued and Recently Adopted Accounting Pronouncements) (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (12,296) | $ 17,068 | |
Cumulative effect of ASU 2016-09 adoption | 7,095 | ||
Retained Earnings (Deficit) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of ASU 2016-09 adoption | $ 7,077 | ||
ASU 2014-09 | Subsequent Event | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 33,300 |
Business and Summary of Signi47
Business and Summary of Significant Accounting Principles (Redeemable Preferred Stock) (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | |||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Business and Summary of Signi48
Business and Summary of Significant Accounting Principles (Accounts Receivable and Allowance for Doubtful Receivables) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Past due period | 120 days |
Business and Summary of Signi49
Business and Summary of Significant Accounting Principles (Wireless Equipment Installment Plan (EIP) Receivables) (Details) | 12 Months Ended |
Dec. 31, 2017payment | |
Loans and Leases Receivable Disclosure [Line Items] | |
Number of installment plan payments | 12 |
Maximum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Installment period to purchase wireless devices | 24 months |
Business and Summary of Signi50
Business and Summary of Significant Accounting Principles (Depreciation Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Telephony transmission equipment and distribution facilities | Minimum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 5 years |
Telephony transmission equipment and distribution facilities | Maximum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 20 years |
Fiber optic cable systems | Minimum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 15 years |
Fiber optic cable systems | Maximum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 25 years |
Cable transmission equipment and distribution facilities | Minimum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 5 years |
Cable transmission equipment and distribution facilities | Maximum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 30 years |
Support equipment and systems | Minimum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 3 years |
Support equipment and systems | Maximum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 20 years |
Transportation equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 5 years |
Transportation equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 13 years |
Property and equipment under capital leases | Minimum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 12 years |
Property and equipment under capital leases | Maximum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 20 years |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 25 years |
Customer premise equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 2 years |
Customer premise equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 20 years |
Studio equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 10 years |
Studio equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Asset Lives | 15 years |
Business and Summary of Signi51
Business and Summary of Significant Accounting Principles (Intangible Assets and Goodwill) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 12 years 10 months 3 days |
Other Intangible Assets | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 2 years |
Other Intangible Assets | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 20 years |
Business and Summary of Signi52
Business and Summary of Significant Accounting Principles (Impairment of Intangibles, Goodwill, and Long-lived Assets) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Impairment of long-lived assets | $ 0 | $ 0 |
Business and Summary of Signi53
Business and Summary of Significant Accounting Principles (Investments) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Impairment of equity method investment | $ 0 | $ 0 | $ 12,593,000 |
Impairment of cost-method investments | $ 0 | $ 0 |
Business and Summary of Signi54
Business and Summary of Significant Accounting Principles (Reconciliation of Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at beginning of period | $ 41,155 | $ 35,060 |
Liability incurred | 4,655 | 1,580 |
Revisions in estimated cash flows | (85) | 3,368 |
Accretion expense | 1,772 | 1,229 |
Liability settled | (163) | (82) |
Balance at end of period | $ 47,334 | $ 41,155 |
Business and Summary of Signi55
Business and Summary of Significant Accounting Principles (Asset Retirement Obligations Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Additional capitalized costs | $ 4.7 | $ 4.9 |
Business and Summary of Signi56
Business and Summary of Significant Accounting Principles (Urban High Cost Support) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Regulatory Assets [Line Items] | |||||||||||
Revenues | $ 235,529 | $ 231,214 | $ 224,346 | $ 228,115 | $ 232,293 | $ 236,655 | $ 233,766 | $ 231,098 | $ 919,204 | $ 933,812 | $ 978,534 |
Receivables | 188,580 | $ 184,296 | $ 188,580 | 184,296 | |||||||
Urban High Cost Support Program | |||||||||||
Regulatory Assets [Line Items] | |||||||||||
Phased down percentage of monthly average annual support | 60.00% | ||||||||||
High Cost Support Program | |||||||||||
Regulatory Assets [Line Items] | |||||||||||
Revenues | $ 62,900 | $ 64,100 | $ 66,200 | ||||||||
Receivables | $ 41,000 | $ 41,000 |
Business and Summary of Signi57
Business and Summary of Significant Accounting Principles (Rural Health Care (RHC) Program) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
USAC | |
Public Utilities, General Disclosures [Line Items] | |
Reduction in revenues | $ 5.5 |
Business and Summary of Signi58
Business and Summary of Significant Accounting Principles (Advertising Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 5.5 | $ 7 | $ 5.7 |
Business and Summary of Signi59
Business and Summary of Significant Accounting Principles (Interest Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Interest costs capitalized | $ 5.7 | $ 3.7 | $ 3 |
Business and Summary of Signi60
Business and Summary of Significant Accounting Principles (Software Capitalization) (Details) - Internally Used Software | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Business and Summary of Signi61
Business and Summary of Significant Accounting Principles (Guarantees) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)entity | |
Accounting Policies [Abstract] | |
Number of VIEs | entity | 7 |
Guarantor liabilities | $ | $ 65.8 |
Business and Summary of Signi62
Business and Summary of Significant Accounting Principles (Classification of Taxes Collected from Customers) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Surcharges reported gross | $ 3,226 | $ 3,849 | $ 5,058 |
Tower Sale and Leaseback (Narra
Tower Sale and Leaseback (Narrative) (Details) - Tower Sale $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Aug. 31, 2016USD ($) | Dec. 31, 2017renewal_option | Dec. 31, 2016USD ($) | |
Sale Leaseback Transaction [Line Items] | |||||
Net proceeds from sale of cell sites | $ 3.1 | $ 3.7 | $ 90.8 | ||
Number of renewal options | renewal_option | 8 | ||||
Renewal period (in years) | 5 years | ||||
Annual increase in lease payments, percentage | 2.00% | ||||
Decrease in asset retirement obligation | $ 3.4 | ||||
Interest rate on the Tower Obligation | 7.10% | ||||
Minimum | |||||
Sale Leaseback Transaction [Line Items] | |||||
Lease term (in years) | 10 years | ||||
Maximum | |||||
Sale Leaseback Transaction [Line Items] | |||||
Lease term (in years) | 50 years |
Tower Sale and Leaseback (Balan
Tower Sale and Leaseback (Balance Sheet Impact) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Tower Sale and Leaseback [Abstract] | ||
Property and equipment, net | $ 19,094 | $ 18,792 |
Tower obligations | $ 93,606 | $ 87,653 |
Tower Sale and Leaseback (Futur
Tower Sale and Leaseback (Future Minimum Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Years ending December 31, | |
2,018 | $ 7,465 |
2,019 | 7,615 |
2,020 | 7,767 |
2,021 | 7,922 |
2,022 | 8,081 |
2023 and thereafter | 149,300 |
Total minimum payments | 188,150 |
Less amount representing interest | 91,978 |
Tower obligations | $ 96,172 |
Consolidated Statements of Ca66
Consolidated Statements of Cash Flows Supplemental Disclosures (Changes in Operating Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |||
(Increase) decrease in accounts receivable, net | $ (4,277) | $ 27,453 | $ (4,230) |
Increase in prepaid expenses | (2,590) | (6,180) | (632) |
(Increase) decrease in inventories | (1,051) | (623) | 5,710 |
(Increase) decrease in other current assets | 109 | (38) | 24 |
Increase in other assets | (10,419) | (47,105) | (11,491) |
Decrease in accounts payable | (1,735) | (135) | (5,579) |
Increase in deferred revenues | 429 | 2,446 | 1,743 |
Increase (decrease) in accrued payroll and payroll related obligations | 1,579 | (979) | (1,469) |
Increase (decrease) in accrued liabilities | (583) | (8,031) | 8,192 |
Increase in accrued interest | 49 | 271 | 7,001 |
Increase (decrease) in subscriber deposits | 354 | (325) | (448) |
Increase (decrease) in long-term deferred revenue | (5,355) | 18,649 | (8,561) |
Increase (decrease) in components of other long-term liabilities | (780) | (230) | 1,305 |
Total change in operating assets and liabilities | $ (24,270) | $ (14,827) | $ (8,435) |
Consolidated Statements of Ca67
Consolidated Statements of Cash Flows Supplemental Disclosures (Net Cash Paid or Received) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest paid, net of amounts capitalized | $ 90,998 | $ 84,546 | $ 76,796 |
Consolidated Statements of Ca68
Consolidated Statements of Cash Flows Supplemental Disclosures (Non-cash Investing and Financing Activities) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Non-cash additions for purchases of property and equipment | $ 20,630 | $ 36,854 | $ 26,799 | |
Asset retirement obligation additions to property and equipment | 4,655 | 4,948 | 2,048 | |
Non-cash consideration for KKCC assets | $ 14,100 | |||
KKCC Assets | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Non-cash consideration for KKCC assets | 0 | 13,993 | 0 | |
Wireless Acquisition | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Non-cash consideration for Wireless Acquisition | $ 0 | $ 0 | $ 23,326 |
Receivables and Allowance for69
Receivables and Allowance for Doubtful Receivables (Receivables by Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 188,580 | $ 184,296 |
Trade | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 187,000 | 182,993 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 1,580 | $ 1,303 |
Receivables and Allowance for70
Receivables and Allowance for Doubtful Receivables (Narrative) (Details) - USF Program - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenue support from regulatory agency, percentage | 26.00% | 24.00% | 19.00% |
Receivables net current | $ 131.8 | $ 100.5 |
Receivables and Allowance for71
Receivables and Allowance for Doubtful Receivables (Allowance for Doubtful Receivables Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of year | $ 4,407 | $ 3,630 | $ 4,542 |
Charged to costs and expenses | 5,800 | 8,516 | 6,359 |
Charged to other accounts | 0 | 0 | 0 |
Write-offs net of recoveries | 6,215 | 7,739 | 7,271 |
Balance at end of year | $ 3,992 | $ 4,407 | $ 3,630 |
Net Property and Equipment (PPE
Net Property and Equipment (PPE by Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 2,754,667 | $ 2,614,875 |
Less accumulated depreciation | 1,541,264 | 1,385,620 |
Less accumulated amortization on property and equipment under capital leases | 58,692 | 67,337 |
Net property and equipment | 1,154,711 | 1,161,918 |
Gross property and equipment under capital leases | 112,495 | 112,495 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 119,553 | 114,966 |
Telephony transmission equipment and distribution facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,402,610 | 1,271,425 |
Cable transmission equipment and distribution facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 285,665 | 231,539 |
Studio equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 14,825 | 15,456 |
Support equipment and systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 299,511 | 290,209 |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 23,468 | 23,674 |
Customer premise equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 152,731 | 158,513 |
Fiber optic cable systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 353,291 | 351,460 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 103,013 | $ 157,633 |
Net Property and Equipment (Nar
Net Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Cash payment | $ 19,700 | $ 0 | $ 19,700 | $ 0 |
Fair market value of IRU capacity | $ 14,100 | |||
Other Income (Expense) | ||||
Property, Plant and Equipment [Line Items] | ||||
Gain from adjustment to fair value | $ 3,100 |
Net Property and Equipment (Con
Net Property and Equipment (Consideration Transferred) (Details) $ in Thousands | Nov. 30, 2016USD ($) |
Allocation of consideration to assets acquired and liabilities assumed: | |
Property and equipment | $ 49,794 |
Deferred taxes | (12,211) |
Deferred revenue | (3,815) |
Total consideration | $ 33,768 |
Intangible Assets and Goodwil75
Intangible Assets and Goodwill (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Finite-lived intangible asset, weighted average useful life | 12 years 10 months 3 days |
Intangible Assets and Goodwil76
Intangible Assets and Goodwill (Finite Lived) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | $ 138,360 | $ 128,267 | |
Less accumulated amortization | 62,663 | 53,823 | |
Net other intangible assets | 75,697 | 74,444 | $ 69,290 |
Software license fees | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 87,989 | 80,839 | |
Rights to use | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 45,114 | 45,114 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 4,221 | 1,530 | |
Right-of-way | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 784 | 784 | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | $ 252 | $ 0 |
Intangible Assets and Goodwil77
Intangible Assets and Goodwill (Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill | |||
Balance at beginning of period | $ 239,263 | $ 239,263 | |
Additions from acquisitions | 3,001 | ||
Balance at end of period | 242,264 | 239,263 | $ 239,263 |
Other Intangible Assets | |||
Balance at beginning of period | 74,444 | 69,290 | |
Additions from acquisitions | 2,943 | ||
Asset additions | 11,546 | 17,601 | |
Amortization expense | (13,164) | (12,447) | (10,442) |
Asset deletions | (72) | ||
Balance at end of period | $ 75,697 | $ 74,444 | $ 69,290 |
Intangible Assets and Goodwil78
Intangible Assets and Goodwill (Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 13,164 | $ 12,447 | $ 10,442 |
Intangible Assets and Goodwil79
Intangible Assets and Goodwill (5 Year Future Amortization) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Years Ending December 31, | |
2,018 | $ 12,695 |
2,019 | 10,234 |
2,020 | 8,188 |
2,021 | 5,855 |
2,022 | $ 3,829 |
Long Term Debt (Schedule of Lon
Long Term Debt (Schedule of Long Term Debt) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Feb. 02, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,415,631 | $ 1,373,783 | |
Less unamortized discount | 19,466 | 21,878 | |
Less unamortized deferred loan fees | 14,117 | 15,133 | |
Less current portion of long-term debt | 2,989 | 3,326 | |
Long-term debt, net | $ 1,379,059 | 1,333,446 | |
Minimum | |||
Debt Instrument [Line Items] | |||
Interest coverage ratio | 2.50 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Total leverage ratio | 5.95 | ||
Senior leverage ratio | 3 | ||
Medium-term Notes | Senior Credit Facility | Term Loan B | |||
Debt Instrument [Line Items] | |||
Principal payments (as a percent) | 0.25% | ||
Long-term debt, gross | $ 242,583 | 245,187 | |
Medium-term Notes | Senior Credit Facility | Term Loan B | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.25% | ||
Medium-term Notes | Senior Credit Facility | Term Loan A | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 215,000 | 215,000 | |
Medium-term Notes | Senior Credit Facility | Term Loan A | Minimum | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.00% | ||
Medium-term Notes | Senior Credit Facility | Term Loan A | Maximum | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.00% | ||
Line of Credit | Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Senior leverage ratio | 3 | ||
Line of Credit | Senior Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 100,000 | 55,000 | |
Line of Credit | Senior Credit Facility | Revolving Credit Facility | Minimum | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.00% | ||
Line of Credit | Senior Credit Facility | Revolving Credit Facility | Maximum | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 3.00% | ||
Senior Notes | 2025 Notes | |||
Debt Instrument [Line Items] | |||
Stated percentage | 6.875% | ||
Long-term debt, gross | $ 450,000 | 450,000 | |
Senior Notes | 2021 Notes | |||
Debt Instrument [Line Items] | |||
Stated percentage | 6.75% | ||
Long-term debt, gross | $ 325,000 | 325,000 | |
Unsecured Debt | Searchlight Note | |||
Debt Instrument [Line Items] | |||
Stated percentage | 7.50% | ||
Long-term debt, gross | $ 75,000 | 75,000 | |
Less unamortized discount | $ 21,700 | ||
Notes Payable to Banks | Wells Fargo Note | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 8,048 | $ 8,596 | |
Notes Payable to Banks | Wells Fargo Note | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.25% |
Long Term Debt (Senior Credit F
Long Term Debt (Senior Credit Facility) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 2,563,000 | $ 5,451,000 | $ 13,979,000 | |
Loss on extinguishment of debt | 649,000 | 640,000 | $ 27,700,000 | |
Long-term debt, gross | 1,415,631,000 | 1,373,783,000 | ||
Letters of credit outstanding | 21,000,000 | |||
Medium-term Notes | Senior Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Loan fees and other expenses | $ 200,000 | 500,000 | ||
Debt issuance costs | 400,000 | 3,900,000 | ||
Loss on extinguishment of debt | 600,000 | 600,000 | ||
Line of Credit | Senior Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 100,000,000 | $ 55,000,000 | ||
Maximum borrowing capacity | 200,000,000 | |||
Remaining borrowing capacity | $ 79,000,000 |
Long Term Debt (2025 Notes and
Long Term Debt (2025 Notes and 2021 Notes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 30, 2017 | |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 649 | $ 640 | $ 27,700 | |
Senior Notes | 2025 Notes and 2021 Notes | ||||
Debt Instrument [Line Items] | ||||
Deferred debt fees | $ 1,900 | |||
Senior Notes | 2025 Notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Percentage of principal | 101.00% | |||
Senior Notes | 2025 Notes | Minimum | ||||
Debt Instrument [Line Items] | ||||
Percentage of principal | 100.00% | |||
Senior Notes | 2021 Notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Percentage of principal | 101.00% | |||
Senior Notes | 2021 Notes | Minimum | ||||
Debt Instrument [Line Items] | ||||
Percentage of principal | 100.00% | |||
Senior Notes | 2019 Notes | ||||
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 27,700 |
Long Term Debt (Searchlight Not
Long Term Debt (Searchlight Note) (Details) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Feb. 02, 2015USD ($)$ / sharesshares |
Debt Instrument [Line Items] | |||
Unamortized discount | $ 19,466,000 | $ 21,878,000 | |
Accrued interest to stock appreciation right rate | 0.04 | ||
Stock Appreciation Rights (SARs) | Class A-1 Common Stock | |||
Debt Instrument [Line Items] | |||
Stock appreciation rights (in shares) | shares | 3,000,000 | ||
Exercise price of rights (USD per share) | $ / shares | $ 13 | ||
Searchlight Promissory Note | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 75,000,000 | ||
Unamortized discount | $ 21,700,000 | ||
Searchlight Promissory Note | Stock Appreciation Rights (SARs) | Class A-1 Common Stock | |||
Debt Instrument [Line Items] | |||
Stock appreciation rights (in shares) | shares | 3,000,000 | ||
Exercise price of rights (USD per share) | $ / shares | $ 13 |
Long Term Debt (Maturities of L
Long Term Debt (Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 2,989 | |
2,019 | 3,010 | |
2,020 | 3,030 | |
2,021 | 643,053 | |
2,022 | 233,365 | |
2023 and thereafter | 530,184 | |
Total debt | 1,415,631 | $ 1,373,783 |
Less unamortized discount | 19,466 | 21,878 |
Less unamortized deferred loan fees | 14,117 | 15,133 |
Less current portion of long-term debt | 2,989 | 3,326 |
Long-term debt, net | $ 1,379,059 | $ 1,333,446 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax (expense) benefit: | |||
Federal taxes | $ 41,531 | $ (4,452) | $ 1,360 |
State taxes | (105) | (753) | 487 |
Deferred tax (expense) benefit | $ 41,426 | $ (5,205) | $ 1,847 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit resulting from change in tax law | $ 41,626,000 | $ 0 | $ 0 |
Unrecognized tax benefits | 0 | 0 | 0 |
Income tax interest expense | 0 | 0 | 0 |
Income tax penalties expense | 0 | 0 | 0 |
Employee's excess tax benefit for stock based compensation | 3,397,000 | 0 | $ 0 |
Operating Loss Carryforwards [Line Items] | |||
Cumulative effect of ASU 2016-09 adoption | 7,095,000 | ||
Retained Earnings (Deficit) | |||
Operating Loss Carryforwards [Line Items] | |||
Cumulative effect of ASU 2016-09 adoption | $ 7,077,000 | ||
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 371,168,000 |
Income Taxes (Statutory Tax Rat
Income Taxes (Statutory Tax Rate Impact on Income Tax Expense) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
“Expected” statutory tax (expense) benefit | $ 23,152,000 | $ (374,000) | $ 9,699,000 |
Tax reform rate change | 41,626,000 | 0 | 0 |
Nondeductible unrealized loss on derivative instrument with related party | (17,021,000) | 1,092,000 | (3,906,000) |
Employee's excess tax benefit for stock based compensation | 3,397,000 | 0 | 0 |
Nondeductible officer compensation | (3,074,000) | (1,424,000) | (1,906,000) |
Nondeductible transaction costs | (2,760,000) | 0 | 0 |
Nondeductible entertainment expenses | (1,141,000) | (1,029,000) | (1,059,000) |
Nondeductible original issue discount | (850,000) | (773,000) | (660,000) |
Nondeductible lobbying expenses | (345,000) | (1,192,000) | (442,000) |
State income taxes, net of federal (expense) benefit | (105,000) | (753,000) | 487,000 |
Impact of non-controlling interest attributable to non-tax paying entity | 0 | 0 | 220,000 |
Other, net | (1,453,000) | (752,000) | (586,000) |
Income tax (expense) benefit | $ 41,426,000 | $ (5,205,000) | $ 1,847,000 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 104,617 | $ 111,236 |
Deferred revenue for financial reporting purposes | 44,853 | 59,993 |
Asset retirement obligations in excess of amounts recognized for tax purposes | 13,328 | 16,808 |
Compensated absences accrued for financial reporting purposes | 2,825 | 3,505 |
Share-based compensation expense for financial reporting purposes in excess of amounts recognized for tax purposes | 2,629 | 3,393 |
Accounts receivable, principally due to allowance for doubtful receivables | 1,023 | 1,965 |
Workers compensation and self-insurance health reserves, principally due to accrual for financial reporting purposes | 1,523 | 1,705 |
Alternative minimum tax credits | 1,735 | 1,735 |
Deferred compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes | 1,370 | 1,687 |
Other | 5,671 | 11,515 |
Total deferred tax assets | 179,574 | 213,542 |
Deferred tax liabilities: | ||
Plant and equipment, principally due to differences in depreciation | 192,413 | 245,118 |
Intangible assets | 77,455 | 106,061 |
Other | 277 | 345 |
Total deferred tax liabilities | 270,145 | 351,524 |
Net deferred tax liabilities | $ 90,571 | $ 137,982 |
Income Taxes (Summary of Tax Ne
Income Taxes (Summary of Tax Net Operating Loss Carryforwards) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Federal | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | $ 371,168 |
Federal | 2020 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 1,530 |
Federal | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 29,615 |
Federal | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 14,081 |
Federal | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 3,968 |
Federal | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 722 |
Federal | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 1,536 |
Federal | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 663 |
Federal | 2027 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 1,010 |
Federal | 2028 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 39,879 |
Federal | 2029 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 46,537 |
Federal | 2031 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 104,101 |
Federal | 2033 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 5,073 |
Federal | 2034 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 38,561 |
Federal | 2035 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 13,415 |
Federal | 2036 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 282 |
Federal | 2037 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 70,195 |
State | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 360,700 |
State | 2020 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 1,505 |
State | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 27,814 |
State | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 13,850 |
State | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 3,903 |
State | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 710 |
State | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 1,511 |
State | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 652 |
State | 2027 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 993 |
State | 2028 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 39,226 |
State | 2029 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 45,756 |
State | 2031 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 102,639 |
State | 2033 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 4,968 |
State | 2034 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 37,312 |
State | 2035 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 12,743 |
State | 2036 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | 268 |
State | 2037 | |
Operating Loss Carryforwards [Line Items] | |
Total tax net operating loss carryforwards | $ 66,850 |
Fair Value Measurements and D90
Fair Value Measurements and Derivative Instrument (Assets Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (mutual funds) | $ 1,323 | $ 1,477 |
Derivative stock appreciation rights | 78,330 | 29,700 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets (mutual funds) | 1,323 | 1,477 |
Derivative stock appreciation rights | 0 | 0 |
Level 2 | ||
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 | 0 |
Level 3 | ||
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 | $ 78,330 | $ 29,700 |
Fair Value Measurements and D91
Fair Value Measurements and Derivative Instrument (Carrying Amounts and Fair Value of Current and Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current and long-term debt | $ 1,382,048 | $ 1,336,772 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Current and long-term debt | $ 1,458,106 | $ 1,393,865 |
Senior Notes | 2021 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated percentage | 6.75% | |
Senior Notes | 2025 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated percentage | 6.875% |
Fair Value Measurements and D92
Fair Value Measurements and Derivative Instrument (Derivative Financial Instrument) (Details) | Feb. 02, 2015USD ($)$ / sharesshares |
Stock Appreciation Rights (SARs) | |
Derivative [Line Items] | |
Expiration period | 8 years |
Stock Appreciation Rights (SARs) | Class A-1 Common Stock | |
Derivative [Line Items] | |
Rights outstanding (in shares) | shares | 3,000,000 |
Exercise price of rights (USD per share) | $ / shares | $ 13 |
Searchlight Promissory Note | Stock Appreciation Rights (SARs) | Class A-1 Common Stock | |
Derivative [Line Items] | |
Rights outstanding (in shares) | shares | 3,000,000 |
Exercise price of rights (USD per share) | $ / shares | $ 13 |
Unsecured Debt | Searchlight Promissory Note | |
Derivative [Line Items] | |
Face amount of debt | $ | $ 75,000,000 |
Fair Value Measurements and D93
Fair Value Measurements and Derivative Instrument (Significant Assumptions and Inputs on Stock Appreciation Right Liability) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Volatility (as a percent) | 37.50% | |
Risk-free interest rate | 2.10% | |
Stock Appreciation Rights (SARs) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Stock Price (USD per share) | $ 39.02 | $ 19.45 |
Stock Appreciation Rights (SARs) | Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Contractual term (in years) | 1 year 1 month | 2 years 1 month |
Volatility (as a percent) | 25.00% | |
Risk-free interest rate | 1.30% | |
Stock Appreciation Rights (SARs) | Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Contractual term (in years) | 5 years 1 month | 6 years 1 month |
Volatility (as a percent) | 37.50% | |
Risk-free interest rate | 2.20% |
Fair Value Measurements and D94
Fair Value Measurements and Derivative Instrument (Fair Value Measurement Using Level 3 Inputs) (Details) - Derivative Stock Appreciation Rights - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance at beginning of period | $ 29,700 | $ 32,820 | $ 0 |
Issuance | 21,660 | ||
Fair value adjustment at end of period, included in Other Income (Expense) | 48,630 | (3,120) | 11,160 |
Balance at end of period | $ 78,330 | $ 29,700 | $ 32,820 |
Stockholders' Equity (Common St
Stockholders' Equity (Common Stock) (Details) $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)voteshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | |
Class of Stock [Line Items] | |||
Value of stock repurchased | $ 12,293 | $ 58,679 | $ 53,774 |
Class A-1 Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, voting rights, number of votes | vote | 1 | ||
Stock conversion ratio | 1 | ||
Class B-1 Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, voting rights, number of votes | vote | 10 | ||
Stock Buyback Program | |||
Class of Stock [Line Items] | |||
Number of shares repurchased | shares | 0.2 | 3.5 | 3 |
Number of shares authorized to be repurchased | $ 61,200 | ||
Stock Buyback Program | Class A-1 Common Stock | |||
Class of Stock [Line Items] | |||
Value of stock repurchased | $ 4,000 | $ 55,200 | $ 47,400 |
Stockholders' Equity (Share-Bas
Stockholders' Equity (Share-Based Compensation) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 17.5 | $ 11 | $ 10.9 |
Unrecognized share-based compensation expense | $ 11.3 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period for recognition of unvested shares | 1 year 7 months 23 days | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock Option Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (USD per share) | $ 23.24 | $ 17.87 | $ 15.06 |
Fair value of awards vesting | $ 29.9 | $ 13.5 | $ 17 |
Class A-1 Common Stock | Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 15,700,000 | ||
Number of shares available for grant | 1,200,000 |
Stockholders' Equity (Summary o
Stockholders' Equity (Summary of Nonvested Restricted Stock Award Activity) (Details) - Stock Option Plan - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | |||
Nonvested at beginning of period (in shares) | 1,465 | ||
Granted (in shares) | 607 | ||
Vested (in shares) | (894) | ||
Forfeited (in shares) | (5) | ||
Nonvested at end of period (in shares) | 1,173 | 1,465 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at beginning of period (USD per share) | $ 14.41 | ||
Granted (USD per share) | 23.24 | $ 17.87 | $ 15.06 |
Vested (USD per share) | 16.22 | ||
Forfeited (USD per share) | 18.48 | ||
Nonvested at end of period (USD per share) | $ 17.58 | $ 14.41 |
Stockholders' Equity (GCI 401(k
Stockholders' Equity (GCI 401(k) Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Matching contributions | $ 11 | $ 11 | $ 9.8 |
Earnings (Loss) per Common Sh99
Earnings (Loss) per Common Share (EPS Calculation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Denominator: | |||||||||||
Basic net loss attributable to GCI common stockholders per common share (USD per share) | $ 1.35 | $ (0.25) | $ (0.26) | $ (1.60) | $ (0.47) | $ 0.21 | $ 0.09 | $ 0.03 | |||
Denominator: | |||||||||||
Diluted net loss attributable to GCI common stockholders per common share (USD per share) | $ 1.19 | $ (0.25) | $ (0.26) | $ (1.60) | $ (0.47) | $ 0.14 | $ (0.01) | $ (0.04) | |||
Class A-1 | |||||||||||
Numerator: | |||||||||||
Undistributed loss allocable to common stockholders | $ (22,074) | $ (3,343) | $ (23,858) | ||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding | 31,344 | 32,526 | 34,764 | ||||||||
Basic net loss attributable to GCI common stockholders per common share (USD per share) | $ (0.70) | $ (0.10) | $ (0.69) | ||||||||
Numerator: | |||||||||||
Undistributed loss allocable to common stockholders for basic computation | $ (22,074) | $ (3,343) | $ (23,858) | ||||||||
Reallocation of undistributed loss as a result of conversion of Class B-1 to Class A-1 shares | (2,172) | (324) | (2,167) | ||||||||
Reallocation of undistributed loss as a result of conversion of dilutive securities | 0 | 0 | |||||||||
Effect of derivative instrument that may be settled in cash or shares | (1,837) | 0 | |||||||||
Effect of share based compensation that may be settled in cash or shares | (5) | 0 | |||||||||
Net loss adjusted for allocation of undistributed earnings and effect of contracts that may be settled in cash or shares | $ (24,246) | $ (5,509) | $ (26,025) | ||||||||
Denominator: | |||||||||||
Number of shares used in basic computation | 31,344 | 32,526 | 34,764 | ||||||||
Conversion of Class B-1 to Class A-1 common shares outstanding (in shares) | 3,083 | 3,154 | 3,157 | ||||||||
Effect of derivative instrument that may settled in cash or shares (in shares) | 612 | 0 | |||||||||
Effect of share based compensation that may be settled in cash or shares (in shares) | 26 | 0 | |||||||||
Number of shares used in per share computation | 34,427 | 36,318 | 37,921 | ||||||||
Diluted net loss attributable to GCI common stockholders per common share (USD per share) | $ (0.70) | $ (0.15) | $ (0.69) | ||||||||
Class B-1 | |||||||||||
Numerator: | |||||||||||
Undistributed loss allocable to common stockholders | $ (2,172) | $ (324) | $ (2,167) | ||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding | 3,083 | 3,154 | 3,157 | ||||||||
Basic net loss attributable to GCI common stockholders per common share (USD per share) | $ (0.70) | $ (0.10) | $ (0.69) | ||||||||
Numerator: | |||||||||||
Undistributed loss allocable to common stockholders for basic computation | $ (2,172) | $ (324) | $ (2,167) | ||||||||
Reallocation of undistributed loss as a result of conversion of Class B-1 to Class A-1 shares | 0 | 0 | 0 | ||||||||
Reallocation of undistributed loss as a result of conversion of dilutive securities | (154) | 0 | |||||||||
Effect of derivative instrument 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 | |||||||||
Net loss adjusted for allocation of undistributed earnings and effect of contracts that may be settled in cash or shares | $ (2,172) | $ (478) | $ (2,167) | ||||||||
Denominator: | |||||||||||
Number of shares used in basic computation | 3,083 | 3,154 | 3,157 | ||||||||
Conversion of Class B-1 to Class A-1 common shares outstanding (in shares) | 0 | 0 | 0 | ||||||||
Effect of derivative instrument that may settled in cash or shares (in shares) | 0 | 0 | |||||||||
Effect of share based compensation that may be settled in cash or shares (in shares) | 0 | 0 | |||||||||
Number of shares used in per share computation | 3,083 | 3,154 | 3,157 | ||||||||
Diluted net loss attributable to GCI common stockholders per common share (USD per share) | $ (0.70) | $ (0.15) | $ (0.69) |
Earnings (Loss) per Common S100
Earnings (Loss) per Common Share (Anti-Dilutive Weighted Average Shares Outstanding) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded | 1,897 | 3 | 858 |
Derivative instrument that may be settled in cash or shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded | 1,870 | 0 | 724 |
Shares associated with unexercised stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded | 1 | 3 | 108 |
Share-based compensation that may be settled in cash or shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded | 26 | 0 | 26 |
Industry Segments Data (Narrati
Industry Segments Data (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)customersegment | Dec. 31, 2016USD ($)customersegment | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | segment | 1 | ||||||||||
Number of reportable segments | segment | 1 | 2 | |||||||||
Percentage of long-lived assets not in US | 82.00% | ||||||||||
Number of major customers | customer | 0 | 0 | |||||||||
Revenues | $ | $ 235,529 | $ 231,214 | $ 224,346 | $ 228,115 | $ 232,293 | $ 236,655 | $ 233,766 | $ 231,098 | $ 919,204 | $ 933,812 | $ 978,534 |
Customer Concentration Risk | Sales Revenue, Net | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ | $ 130,800 | ||||||||||
Concentration risk, percentage | 13.00% |
Industry Segments Data (Revenue
Industry Segments Data (Revenue by Customer and Service Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 235,529 | $ 231,214 | $ 224,346 | $ 228,115 | $ 232,293 | $ 236,655 | $ 233,766 | $ 231,098 | $ 919,204 | $ 933,812 | $ 978,534 |
Wireless | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 272,347 | 283,156 | 351,572 | ||||||||
Data | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 454,237 | 436,398 | 399,685 | ||||||||
Video | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 117,648 | 127,407 | 133,893 | ||||||||
Voice | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 74,972 | 86,851 | 93,384 | ||||||||
Consumer | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 436,882 | 452,036 | 475,259 | ||||||||
Consumer | Wireless | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 167,733 | 177,801 | 199,862 | ||||||||
Consumer | Data | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 145,757 | 140,196 | 130,213 | ||||||||
Consumer | Video | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 99,609 | 107,305 | 115,074 | ||||||||
Consumer | Voice | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 23,783 | 26,734 | 30,110 | ||||||||
Business | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 482,322 | 481,776 | 503,275 | ||||||||
Business | Wireless | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 104,614 | 105,355 | 151,710 | ||||||||
Business | Data | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 308,480 | 296,202 | 269,472 | ||||||||
Business | Video | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 18,039 | 20,102 | 18,819 | ||||||||
Business | Voice | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 51,189 | $ 60,117 | $ 63,274 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Jul. 11, 2016 | Feb. 02, 2015 | Jan. 31, 2001 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2001 | Apr. 30, 2008 | Dec. 31, 1991 |
Related Party Transaction [Line Items] | |||||||||
Value of stock repurchased | $ 12,293,000 | $ 58,679,000 | $ 53,774,000 | ||||||
Immediate Family Member of Management or Principal Owner | Property | |||||||||
Related Party Transaction [Line Items] | |||||||||
Capital lease obligations | $ 900,000 | ||||||||
Immediate Family Member of Management or Principal Owner | Capital Lease Obligation Addition | |||||||||
Related Party Transaction [Line Items] | |||||||||
Capital lease obligations | $ 1,300,000 | ||||||||
Chief Executive Officer | Second Aircraft | |||||||||
Related Party Transaction [Line Items] | |||||||||
Termination period on lease | 12 months | ||||||||
Monthly lease payment | $ 132,000 | ||||||||
Capital lease deposit | $ 1,500,000 | ||||||||
Deposit termination period | 6 months | ||||||||
ACS | |||||||||
Related Party Transaction [Line Items] | |||||||||
Payments to related party | $ 6,200,000 | ||||||||
Receipts from related parties | $ 8,100,000 | ||||||||
Class A-1 Common Stock | Investor | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of shares repurchased | 1,000,000 | ||||||||
Value of stock repurchased | $ 16,100,000 |
Variable Interest Entities (New
Variable Interest Entities (New Markets Tax Credit Entities) (Details) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | ||
Tax credit percentage | 39.00% | |
Restricted cash | $ 15.4 | $ 0.9 |
Percentage of recapture | 100.00% | |
Recapture period | 7 years | |
Assets | $ 165.9 | 140.9 |
Liabilities | $ 121.2 | $ 104.2 |
Variable Interest Entities (Key
Variable Interest Entities (Key Terms of NMTC Transaction) (Details) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Millions | Dec. 22, 2017 | Mar. 21, 2017 | Dec. 11, 2012 | Oct. 03, 2012 | Aug. 30, 2011 |
NMTC 1 | |||||
Variable Interest Entity [Line Items] | |||||
Loan Amount | $ 58.3 | ||||
Interest Rate on Loan to Investment Fund | 1.00% | ||||
NMTC 1 | Minimum | |||||
Variable Interest Entity [Line Items] | |||||
Interest Rate on Loan to Investment Fund | 1.00% | ||||
NMTC 1 | Maximum | |||||
Variable Interest Entity [Line Items] | |||||
Interest Rate on Loan to Investment Fund | 3.96% | ||||
NMTC 1 | US Bancorp Investment | |||||
Variable Interest Entity [Line Items] | |||||
Financial Support to Other Entity | $ 22.4 | ||||
NMTC 1 | Loan to Unicom | |||||
Variable Interest Entity [Line Items] | |||||
Financial Support to Other Entity | $ 76.8 | ||||
NMTC 2 | |||||
Variable Interest Entity [Line Items] | |||||
Loan Amount | $ 37.7 | ||||
Interest Rate on Loan to Investment Fund | 1.00% | ||||
NMTC 2 | Minimum | |||||
Variable Interest Entity [Line Items] | |||||
Interest Rate on Loan to Investment Fund | 0.71% | ||||
NMTC 2 | Maximum | |||||
Variable Interest Entity [Line Items] | |||||
Interest Rate on Loan to Investment Fund | 0.77% | ||||
NMTC 2 | US Bancorp Investment | |||||
Variable Interest Entity [Line Items] | |||||
Financial Support to Other Entity | $ 17.5 | ||||
NMTC 2 | Loan to Unicom | |||||
Variable Interest Entity [Line Items] | |||||
Financial Support to Other Entity | $ 55.2 | ||||
NMTC 3 | |||||
Variable Interest Entity [Line Items] | |||||
Loan Amount | $ 8.2 | ||||
Interest Rate on Loan to Investment Fund | 1.00% | ||||
NMTC 3 | US Bancorp Investment | |||||
Variable Interest Entity [Line Items] | |||||
Financial Support to Other Entity | $ 3.8 | ||||
NMTC 3 | Loan to Unicom | |||||
Variable Interest Entity [Line Items] | |||||
Interest Rate on Loan to Investment Fund | 1.35% | ||||
Financial Support to Other Entity | $ 12 | ||||
NMTC 4 | |||||
Variable Interest Entity [Line Items] | |||||
Loan Amount | $ 6.7 | ||||
Interest Rate on Loan to Investment Fund | 1.00% | ||||
NMTC 4 | US Bancorp Investment | |||||
Variable Interest Entity [Line Items] | |||||
Financial Support to Other Entity | $ 3.3 | ||||
NMTC 4 | Loan to Unicom | |||||
Variable Interest Entity [Line Items] | |||||
Interest Rate on Loan to Investment Fund | 0.73% | ||||
Financial Support to Other Entity | $ 9.8 | ||||
NMTC 5 | |||||
Variable Interest Entity [Line Items] | |||||
Loan Amount | $ 10.4 | ||||
Interest Rate on Loan to Investment Fund | 1.00% | ||||
NMTC 5 | Minimum | |||||
Variable Interest Entity [Line Items] | |||||
Interest Rate on Loan to Investment Fund | 0.67% | ||||
NMTC 5 | Maximum | |||||
Variable Interest Entity [Line Items] | |||||
Interest Rate on Loan to Investment Fund | 1.24% | ||||
NMTC 5 | US Bancorp Investment | |||||
Variable Interest Entity [Line Items] | |||||
Financial Support to Other Entity | $ 5.1 | ||||
NMTC 5 | Loan to Unicom | |||||
Variable Interest Entity [Line Items] | |||||
Financial Support to Other Entity | $ 14.7 |
Variable Interest Entities (Equ
Variable Interest Entities (Equity Method Investment) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Impairment of equity method investment | $ 0 | $ 0 | $ 12,593,000 | |
Exposure to loss related with VIE | $ 0 | |||
Next Generation Carrier-Class Communications Services Firm | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 40.80% | |||
Fair value of equity investment | $ 0 |
Commitments and Contingencie107
Commitments and Contingencies (Narrative) (Details) | Apr. 26, 2017USD ($) | Apr. 04, 2017year$ / shares | Apr. 12, 2017USD ($) |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Consideration per share (USD per share) | $ 32.50 | ||
Liberty Ventures reference price (USD per share) | $ 43.65 | ||
Years to redemption date | year | 21 | ||
Senior Notes | Senior Notes Due 2021 | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Aggregate principal amount of consent received | $ | $ 312,418,000 | ||
Percent of total consent received | 96.13% | ||
Aggregate consent fee | $ | $ 812,500 | ||
Senior Notes | Senior Notes Due 2025 | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Aggregate principal amount of consent received | $ | $ 443,538,000 | ||
Percent of total consent received | 98.56% | ||
Aggregate consent fee | $ | $ 1,125,000 | ||
Minimum | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Series A preferred shares dividend rate | 5.00% | ||
Maximum | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Series A preferred shares dividend rate | 7.00% | ||
Series A Cumulative Redeemable Preferred Stock | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Initial liquidation price (USD per share) | $ 25 | ||
Common Stock | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Ratio of new stock received | 0.63 | ||
Consideration per share (USD per share) | $ 27.50 | ||
Preferred Stock | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Ratio of new stock received | 0.20 | ||
Consideration per share (USD per share) | $ 5 |
Commitments and Contingencie108
Commitments and Contingencies (Operating Leases as Lessee) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental costs | $ 58.8 | $ 58.9 | $ 51.5 |
Commitments and Contingencie109
Commitments and Contingencies (Capital Leases as Lessee) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Capital lease term | 14 years |
Capital lease obligations | $ 98.6 |
Commitments and Contingencie110
Commitments and Contingencies (Summary of Minimum Future Lease Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Operating | ||
2,018 | $ 48,409 | |
2,019 | 38,293 | |
2,020 | 27,566 | |
2,021 | 19,806 | |
2,022 | 11,715 | |
2023 and thereafter | 28,298 | |
Total minimum lease payments | 174,087 | |
Capital | ||
2,018 | 13,440 | |
2,019 | 13,450 | |
2,020 | 13,459 | |
2,021 | 12,044 | |
2,022 | 5,293 | |
2023 and thereafter | 2,411 | |
Total minimum lease payments | 60,097 | |
Less amount representing interest | 9,781 | |
Less current maturity of obligations under capital leases | 10,028 | |
Long-term obligations under capital leases, excluding current maturity | $ 40,288 | $ 50,316 |
Commitments and Contingencie111
Commitments and Contingencies (Self-Insurance) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Coverage limit per incident | $ 750,000 | |
Self insurance reserve | 4,800,000 | $ 4,000,000 |
Workers compensation self insurance coverage limit per incident | 500,000 | |
Workers compensation self insurance reserve | $ 3,200,000 | $ 2,900,000 |
Commitments and Contingencie112
Commitments and Contingencies (Tribal Mobility Fund I Grant) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 28, 2014 | |
Other Commitments [Line Items] | ||||
Grant proceeds | $ 2,188 | $ 1,527 | $ 14,007 | |
FCC | ||||
Other Commitments [Line Items] | ||||
Federal grant award | $ 41,400 | |||
Grant proceeds | 16,800 | $ 0 | $ 13,800 | |
Grant awards | $ 10,800 |
Software Impairment (Details)
Software Impairment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Software impairment charge | $ 0 | $ 0 | $ 29,839,000 |
Wireless, Internet, Video, Local Service, and Long Distance Customer Billing Systems | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Fair value of remaining capital expenditures | 0 | ||
Software impairment charge | 20,700,000 | ||
Internally Developed Machine-to-Machine Billing System | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Software impairment charge | 7,100,000 | ||
User Management Software | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Software impairment charge | $ 1,000,000 |
Selected Quarterly Financial114
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 235,529 | $ 231,214 | $ 224,346 | $ 228,115 | $ 232,293 | $ 236,655 | $ 233,766 | $ 231,098 | $ 919,204 | $ 933,812 | $ 978,534 |
Operating income | 20,699 | 24,174 | 11,031 | 15,346 | 13,185 | 26,368 | 19,531 | 20,019 | 71,250 | 79,103 | 106,211 |
Net income (loss) | 48,373 | (8,849) | (9,000) | (55,246) | (16,243) | 7,827 | 3,298 | 982 | (24,722) | (4,136) | (25,866) |
Net income (loss) attributable to GCI | $ 48,496 | $ (8,731) | $ (8,882) | $ (55,129) | $ (16,124) | $ 7,943 | $ 3,415 | $ 1,099 | $ (24,246) | $ (3,667) | $ (26,025) |
Basic net income (loss) attributable to GCI per common share (USD per share) | $ 1.35 | $ (0.25) | $ (0.26) | $ (1.60) | $ (0.47) | $ 0.21 | $ 0.09 | $ 0.03 | |||
Diluted net income (loss) attributable to GCI per common share (USD per share) | $ 1.19 | $ (0.25) | $ (0.26) | $ (1.60) | $ (0.47) | $ 0.14 | $ (0.01) | $ (0.04) |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 28, 2018USD ($) | Dec. 31, 2017USD ($) |
Maximum | ||
Subsequent Event [Line Items] | ||
Senior leverage ratio | 3 | |
Revolving Credit Facility | Line of Credit | Maximum | ||
Subsequent Event [Line Items] | ||
Senior leverage ratio | 3 | |
Revolving Credit Facility | Line of Credit | Subsequent Event | Maximum | ||
Subsequent Event [Line Items] | ||
Senior leverage ratio | 3.50 | |
Revolving Credit Facility | Line of Credit | Senior Credit Facility | ||
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | $ 200,000,000 | |
Revolving Credit Facility | Line of Credit | Senior Credit Facility | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Maximum borrowing capacity | $ 300,000,000 |