Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 16, 2015 | Jun. 30, 2014 |
Document and Entity Information | |||
Entity Registrant Name | ATLANTIC TELE NETWORK INC /DE | ||
Entity Central Index Key | 879585 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $644 | ||
Entity Common Stock, Shares Outstanding | 15,931,498 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $326,216 | $356,607 |
Restricted cash | 39,703 | 39,000 |
Accounts receivable, net of allowances of $9.7 million and $11.3 million, respectively | 52,873 | 37,680 |
Materials and supplies | 10,546 | 7,269 |
Deferred income taxes | 2,588 | 1,994 |
Prepayments and other current assets | 19,273 | 24,705 |
Assets of discontinued operations | 175 | 4,748 |
Total current assets | 451,374 | 472,003 |
Fixed Assets: | ||
Property, plant and equipment | 763,417 | 606,912 |
Less: accumulated depreciation | -393,835 | -352,280 |
Net fixed assets | 369,582 | 254,632 |
Telecommunication licenses | 44,090 | 39,687 |
Goodwill | 45,077 | 45,077 |
Trade name license, net | 417 | 417 |
Customer relationships, net | 1,496 | 1,807 |
Restricted cash | 5,475 | 39,000 |
Other assets | 7,519 | 7,096 |
Total assets | 925,030 | 859,719 |
Current Liabilities: | ||
Current portion of long-term debt | 6,083 | |
Accounts payable and accrued liabilities | 61,737 | 41,709 |
Dividends payable | 4,631 | 4,279 |
Accrued taxes | 5,667 | 36,081 |
Advance payments and deposits | 7,898 | 8,327 |
Deferred income taxes | 213 | 1,601 |
Other current liabilities | 16,593 | 17,889 |
Liabilities of discontinued operations | 1,247 | 11,187 |
Total current liabilities | 104,069 | 121,073 |
Deferred income taxes | 30,366 | 26,007 |
Other liabilities | 19,619 | 12,784 |
Long-term debt, excluding current portion | 32,794 | |
Total liabilities | 186,848 | 159,864 |
Commitments and contingencies (Note 14) | ||
Atlantic Tele-Network, Inc. Stockholders' Equity: | ||
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value per share; 50,000,000 shares authorized; 16,494,982 and 16,647,334 shares issued, respectively, and 15,816,189 and 15,925,748 hares outstanding, respectively | 166 | 164 |
Treasury stock, at cost; 678,793 and 721,586 shares, respectively | -15,549 | -13,389 |
Additional paid-in capital | 145,563 | 139,106 |
Retained earnings | 549,963 | 519,651 |
Accumulated other comprehensive loss | -2,921 | -2,202 |
Total Atlantic Tele-Network, Inc. stockholders' equity | 677,222 | 643,330 |
Non-controlling interests | 60,960 | 56,525 |
Total equity | 738,182 | 699,855 |
Total liabilities and equity | $925,030 | $859,719 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowances (in dollars) | $11,344 | $9,746 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 16,647,334 | 16,494,982 |
Common stock, shares outstanding | 15,925,748 | 15,816,189 |
Treasury stock, shares | 721,586 | 678,793 |
CONSOLIDATED_INCOME_STATEMENTS
CONSOLIDATED INCOME STATEMENTS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUE: | |||
Total revenue | $336,347 | $292,835 | $277,796 |
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | |||
Termination and access fees | 64,177 | 55,747 | 56,814 |
Engineering and operations | 40,269 | 38,904 | 40,018 |
Sales and marketing | 20,994 | 17,757 | 18,981 |
Equipment expense | 13,290 | 12,876 | 13,381 |
General and administrative | 57,848 | 53,093 | 49,625 |
Transaction-related charges | 2,959 | 2,712 | 7 |
Depreciation and amortization | 51,234 | 48,737 | 50,587 |
Impairment of intangible assets | 3,350 | ||
Gain on disposition of long-lived assets | -1,076 | -11,605 | |
Total operating expenses | 250,771 | 228,750 | 221,158 |
Income from operations | 85,576 | 64,085 | 56,638 |
OTHER INCOME (EXPENSE) | |||
Interest expense, net | -420 | -11,933 | -13,709 |
Loss on interest rate derivative contracts | -5,408 | ||
Other income (expense), net | 1,012 | -271 | 1,867 |
Other income (expense), net | 592 | -17,612 | -11,842 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 86,168 | 46,473 | 44,796 |
Income taxes | 28,148 | 9,536 | 20,831 |
INCOME FROM CONTINUING OPERATIONS | 58,020 | 36,937 | 23,965 |
Income from discontinued operations, net of tax | 5,166 | 29,202 | |
Gain on sale of discontinued operations, net of tax | 1,102 | 307,102 | |
Income from discontinued operations, net of tax | 1,102 | 312,268 | 29,202 |
NET INCOME | 59,122 | 349,205 | 53,167 |
Net income attributable to non-controlling interests, net of tax: | |||
Continuing operations | -10,970 | -7,989 | -3,145 |
Discontinued operations | -601 | -1,090 | |
Disposal gain on sale of discontinued operations | -28,899 | ||
Net income attributable to non-controlling interests, net of tax | -10,970 | -37,489 | -4,235 |
NET INCOME ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS | 48,152 | 311,716 | 48,932 |
NET INCOME PER WEIGHTED AVERAGE BASIC SHARE ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS: | |||
Continuing operations (in dollars per share) | $2.96 | $1.84 | $1.34 |
Discontinued operations: | |||
Discontinued operations (in dollars per share) | $0.29 | $1.81 | |
Gain on sale of discontinued operations (in dollars per share) | $0.07 | $17.72 | |
Total discontinued operations (in dollars per share) | $0.07 | $18.01 | $1.81 |
Total (in dollars per share) | $3.03 | $19.85 | $3.15 |
NET INCOME PER WEIGHTED AVERAGE DILUTED SHARE ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS: | |||
Continued operations (in dollars per share) | $2.94 | $1.83 | $1.33 |
Discontinued operations: | |||
Discontinued operations (in dollars per share) | $0.29 | $1.80 | |
Gain on sale of discontinued operations (in dollars per share) | $0.07 | $17.59 | |
Total discontinued operations (in dollars per share) | $0.07 | $17.88 | $1.80 |
Total (in dollars per share) | $3.01 | $19.71 | $3.13 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||
Basic (in shares) | 15,898 | 15,704 | 15,531 |
Diluted (in shares) | 16,013 | 15,817 | 15,619 |
DIVIDENDS PER SHARE APPLICABLE TO COMMON STOCK (in dollars per share) | $1.12 | $1.04 | $0.96 |
U.S. Wireless | |||
REVENUE: | |||
Total revenue | 153,040 | 107,930 | 102,817 |
International wireless | |||
REVENUE: | |||
Total revenue | 88,650 | 91,432 | 81,463 |
Wireline | |||
REVENUE: | |||
Total revenue | 85,284 | 84,585 | 85,524 |
Equipment and other | |||
REVENUE: | |||
Total revenue | $9,373 | $8,888 | $7,992 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $59,122 | $349,205 | $53,167 |
Other comprehensive income: | |||
Foreign currency translation adjustment | 4 | -259 | |
Projected pension benefit obligation, net of tax expense (benefit) of $(1.2) million, $0.2 million and $0.6 million | -724 | -631 | 1,395 |
Unrealized gain on interest rate swap, net of tax expense (benefit) of (0.1) million and $(3.6) million | 6,985 | 207 | |
Other comprehensive (loss) income, net of tax | -720 | 6,095 | 1,602 |
Comprehensive income | 58,402 | 355,300 | 54,769 |
Less: Comprehensive income attributable to non-controlling interests | -10,970 | -37,489 | -4,235 |
Comprehensive income attributable to Atlantic Tele-Network, Inc. | $47,432 | $317,811 | $50,534 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Projected pension benefit obligation, tax expense (benefit) | $0.20 | ($1.20) |
Unrealized gain on interest rate swap, tax expense | ($3.60) | ($0.10) |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Atlantic Tele-Network, Inc. | Common Stock | Treasury Stock, at cost | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Non-Controlling Interests | Total |
In Thousands, unless otherwise specified | ||||||||
Equity, beginning of period at Dec. 31, 2011 | $294,266 | $160 | ($4,942) | $118,620 | $190,327 | ($9,899) | $58,264 | $352,530 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of 109,318, 100,902 and 72,083 restricted shares of common stock for the years ended December 31, 2014, 2013 and 2012, respectively | 0 | |||||||
Issuance of 43,034, 303,536 and 62,575 shares of common stock upon exercise of stock options for the years ended December 31, 2014, 2013 and 2012, respectively | 1,452 | 1,452 | 1,452 | |||||
Purchase of 34,293, 163,222 and 9,175 shares of common stock for the years ended December 31, 2014, 2013 and 2012, respectively | -344 | -344 | -344 | |||||
Stock-based compensation | 3,543 | 3,543 | 3,543 | |||||
Dividends declared on common stock | -14,943 | -14,943 | -3,389 | -18,332 | ||||
Excess tax benefits from share-based compensation | -362 | -362 | -362 | |||||
Non-controlling interest in equity acquired | -77 | -77 | ||||||
Investments made by minority shareholders | 1,061 | 1,061 | ||||||
Comprehensive income: | ||||||||
Net income (loss) | 48,932 | 48,932 | 4,235 | 53,167 | ||||
Other comprehensive income, net of tax expense (benefit) of $641, $2,316, and $1,315 for the years ended December 31, 2014, 2013 and 2012, respectively | 1,602 | 1,602 | 1,602 | |||||
Comprehensive income | 50,534 | 4,235 | 54,769 | |||||
Equity, end of period at Dec. 31, 2012 | 334,146 | 160 | -5,286 | 123,253 | 224,316 | -8,297 | 60,094 | 394,240 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of 109,318, 100,902 and 72,083 restricted shares of common stock for the years ended December 31, 2014, 2013 and 2012, respectively | 0 | |||||||
Issuance of 43,034, 303,536 and 62,575 shares of common stock upon exercise of stock options for the years ended December 31, 2014, 2013 and 2012, respectively | 9,302 | 4 | 9,298 | 9,302 | ||||
Purchase of 34,293, 163,222 and 9,175 shares of common stock for the years ended December 31, 2014, 2013 and 2012, respectively | -8,103 | -8,103 | -8,103 | |||||
Stock-based compensation | 4,454 | 4,454 | 4,454 | |||||
Dividends declared on common stock | -16,381 | -16,381 | -27,832 | -44,213 | ||||
Excess tax benefits from share-based compensation | 2,101 | 2,101 | 2,101 | |||||
Investments made by minority shareholders | 407 | 407 | ||||||
Sale of non-controlling interest | -13,633 | -13,633 | ||||||
Comprehensive income: | ||||||||
Net income (loss) | 311,716 | 311,716 | 37,489 | 349,205 | ||||
Other comprehensive income, net of tax expense (benefit) of $641, $2,316, and $1,315 for the years ended December 31, 2014, 2013 and 2012, respectively | 6,095 | 6,095 | 6,095 | |||||
Comprehensive income | 317,811 | 37,489 | 355,300 | |||||
Equity, end of period at Dec. 31, 2013 | 643,330 | 164 | -13,389 | 139,106 | 519,651 | -2,202 | 56,525 | 699,855 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of 109,318, 100,902 and 72,083 restricted shares of common stock for the years ended December 31, 2014, 2013 and 2012, respectively | 0 | |||||||
Issuance of 43,034, 303,536 and 62,575 shares of common stock upon exercise of stock options for the years ended December 31, 2014, 2013 and 2012, respectively | 1,623 | 2 | 1,621 | 1,623 | ||||
Purchase of 34,293, 163,222 and 9,175 shares of common stock for the years ended December 31, 2014, 2013 and 2012, respectively | -2,160 | -2,160 | -2,160 | |||||
Stock-based compensation | 4,324 | 4,324 | 4,324 | |||||
Dividends declared on common stock | -17,840 | -17,840 | -16,331 | -34,171 | ||||
Excess tax benefits from share-based compensation | 513 | 513 | 513 | |||||
Investments made by minority shareholders | 9,796 | 9,796 | ||||||
Comprehensive income: | ||||||||
Net income (loss) | 48,152 | 48,152 | 10,970 | 59,122 | ||||
Other comprehensive income, net of tax expense (benefit) of $641, $2,316, and $1,315 for the years ended December 31, 2014, 2013 and 2012, respectively | -720 | -720 | -720 | |||||
Comprehensive income | 47,432 | 10,970 | 58,402 | |||||
Equity, end of period at Dec. 31, 2014 | $677,222 | $166 | ($15,549) | $145,563 | $549,963 | ($2,921) | $60,960 | $738,182 |
CONSOLIDATED_STATEMENTS_OF_EQU1
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF EQUITY | |||
Issuance of restricted shares of common stock | 109,318 | 100,902 | 72,083 |
Issuance of shares of common stock upon exercise of stock options | 43,034 | 303,536 | 62,575 |
Purchase of shares of common stock | 34,293 | 163,222 | 9,175 |
Other comprehensive income before reclassifications, tax | $641 | $2,316 | $1,315 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $59,122 | $349,205 | $53,167 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Depreciation and amortization | 51,234 | 48,737 | 50,587 |
Provision for doubtful accounts | 1,676 | 1,163 | 1,494 |
Amortization and write off of debt discount and debt issuance costs | 114 | 6,681 | 2,388 |
Stock-based compensation | 4,323 | 4,454 | 3,323 |
Loss on interest rate derivative contracts | 5,408 | ||
Deferred income taxes | -113 | -4,849 | 2,502 |
Income from discontinued operations | -5,166 | -29,202 | |
Gain on disposition of long-lived assets | -1,076 | -11,605 | |
Impairment of intangibles | 3,350 | ||
Gain on sale of discontinued operations | -1,102 | -307,102 | |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||
Accounts receivable, net | -15,264 | 2,233 | -1,951 |
Materials and supplies, prepayments, and other current assets | -4,817 | -17,117 | -700 |
Income tax receivable | -2,620 | 14,251 | 11,545 |
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities | 7,629 | 10,472 | -4,404 |
Accrued taxes | -15,650 | -242,696 | 26,416 |
Other | -1,833 | 4,006 | 7,974 |
Net cash provided by (used in) operating activities of continuing operations | 82,699 | -131,396 | 114,884 |
Net cash provided by operating activities of discontinued operations | -4,719 | 19,394 | 72,587 |
Net cash provided by operating activities | 77,980 | -112,002 | 187,471 |
Cash flows from investing activities: | |||
Capital expenditures | -58,300 | -69,316 | -42,154 |
Acquisition of business, net of acquired cash of $6,571 | -50,361 | ||
Restricted cash acquired from acquisition of businesses | -5,884 | ||
Net proceeds from sale of assets | 1,371 | ||
Change in restricted cash | 38,707 | ||
Proceeds from disposition of long-lived assets | 1,500 | 15,163 | |
Net cash used in investing activities of continuing operations | -74,467 | -67,816 | -26,991 |
Net cash provided by (used in) investing activities of discontinued operations, net | 710,934 | -35,267 | |
Net cash provided by (used in) investing activities | -74,467 | 643,118 | -62,258 |
Cash flows from financing activities: | |||
Dividends paid on common stock | -17,488 | -12,096 | -18,491 |
Distribution to minority stockholders | -16,331 | -26,155 | -2,458 |
Payment of debt issuance costs | -1,945 | -12 | -3,564 |
Proceeds from stock option exercises | 1,129 | 2,669 | 1,452 |
Principal repayments of term loan | -272,137 | -260,793 | |
Principal repayments of revolver loan | -74,534 | ||
Purchases of common stock | -1,665 | -1,473 | -344 |
Investments made by minority shareholders in consolidated affiliates | 2,500 | 408 | 1,061 |
Proceeds from borrowings under term loan | 275,000 | ||
Proceeds from borrowings under revolver loan | 46,378 | ||
Repurchase of non-controlling interests | -104 | -77 | |
Net cash used in financing activities of continuing operations | -33,904 | -308,796 | -36,370 |
Net cash used in financing activities of discontinued operations, net | -1,678 | -931 | |
Net cash used in financing activities | -33,904 | -310,474 | -37,301 |
Effect of foreign currency exchange rates on cash and cash equivalents | -682 | ||
Net change in cash and cash equivalents | -30,391 | 219,960 | 87,912 |
Cash and cash equivalents, beginning of year | 356,607 | 136,647 | 48,735 |
Cash and cash equivalents, end of year | 326,216 | 356,607 | 136,647 |
Supplemental cash flow information: | |||
Interest paid | 2,930 | 4,857 | 14,388 |
Taxes paid, net | 48,349 | 256,819 | 8,841 |
Dividends declared, not paid | $4,618 | $4,285 | $3,548 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parantheticals) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Cash acquired from acquisition | $6,571 |
ORGANIZATION_AND_BUSINESS_OPER
ORGANIZATION AND BUSINESS OPERATIONS | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
ORGANIZATION AND BUSINESS OPERATIONS | |||||||
ORGANIZATION AND BUSINESS OPERATIONS | 1. ORGANIZATION AND BUSINESS OPERATIONS | ||||||
The Company is a holding company that, through its operating subsidiaries, (i) provides wireless and wireline telecommunications services in North America, Bermuda and the Caribbean, (ii) owns and operates commercial distributed generation solar power systems in the United States, and (iii) owns and operates terrestrial and submarine fiber optic transport systems in the United States and the Caribbean, respectively. | |||||||
The Company offers the following principal services: | |||||||
• | Wireless. In the United States, the Company offers wholesale wireless voice and data roaming services to national, regional, local and selected international wireless carriers in rural markets located principally in the Southwest and Midwest United States. The Company also offers wireless voice and data services to retail customers in Guyana, Bermuda, and in other smaller markets in the Caribbean and the United States. | ||||||
• | Wireline. The Company's local telephone and data services include its operations in Guyana and the mainland United States. The Company is the exclusive licensed provider of domestic wireline local and long-distance telephone services in Guyana and international voice and data communications into and out of Guyana. The Company also offers facilities-based integrated voice and data communications services and wholesale transport services to enterprise and residential customers in New England, primarily in Vermont, and in New York State. In addition, the Company offers wholesale long-distance voice services to telecommunications carriers. | ||||||
• | Renewable Energy. In the United States, the Company provides distributed generation solar power to corporate, utility and municipal customers in Massachusetts, California and New Jersey. | ||||||
The following chart summarizes the operating activities of the Company's principal subsidiaries, the segments in which it reports its revenue and the markets it served as of December 31, 2014: | |||||||
Services | Segment | Markets | Tradenames | ||||
Wireless | U.S. Wireless | United States (rural markets) | Commnet, Choice | ||||
Island Wireless | Aruba, Bermuda, Turks and Caicos, U.S. Virgin Islands | Mio, CellOne, Islandcom, Choice | |||||
International Integrated Telephony | Guyana | Cellink | |||||
Wireline | International Integrated Telephony | Guyana | GT&T | ||||
U.S. Wireline | United States (New England and New York State) | Sovernet, ION, Essextel | |||||
Renewable Energy | Renewable Energy | United States (Massachusetts, California and New Jersey) | Ahana Renewables | ||||
The Company is actively evaluating potential acquisitions, investment opportunities and other strategic transactions, both domestic and international, that meet its return-on-investment and other criteria. The Company provides management, technical, financial, regulatory, and marketing services to its subsidiaries and typically receives a management fee equal to a percentage of their respective revenue. Management fees from subsidiaries are eliminated in consolidation. For information about the Company's business segments and geographical information about its revenue, operating income and long-lived assets, see Note 16 to the Consolidated Financial Statements. | |||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
Basis of Presentation | ||||||||||||||
The consolidated financial statements include the accounts of the Company, its majority-owned subsidiaries and certain entities, which are consolidated in accordance with the provisions of the Financial Accounting Standards Board ("FASB") authoritative guidance on the consolidation of variable interest entities since it is determined that the Company is the primary beneficiary of these entities. | ||||||||||||||
During the year ended December 31, 2014, the Company recognized approximately $0.7 million in general and administrative expenses to correct for an understatement of transactional tax liabilities generated during 2013 and $1.1 million in other income to correct for an understatement of foreign exchange gains generated during 2013. The Company determined that the impact of these errors was not material, individually or in the aggregate, to the current or any prior period financial statements. | ||||||||||||||
On September 20, 2013, the Federal Communications Commission announced its approval of the previously announced proposed sale of the Company's U.S. retail wireless business operated under the Alltel name to AT&T for approximately $780.0 million in cash plus $16.8 million in working capital. The Company previously reported the operations of this business within its U.S. Wireless segment. As a result of that approval, the Company completed the sale of certain U.S. retail wireless assets on that date and recorded a gain of approximately $307.1 million during the year ended December 31, 2013 and $1.1 million during the year ended December 31, 2014. | ||||||||||||||
The operations of the Alltel business, which were previously included in the Company's U.S. Wireless segment, have been classified as discontinued operations in all periods presented. The gain on the sale of the Alltel business is also included in discontinued operations. See Note 4 for additional information. Unless indicated otherwise, the information in the Notes to the Consolidated Financial Statements relates only to our continuing operations. | ||||||||||||||
Use of Estimates | ||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates relate to the allowance for doubtful accounts, useful lives of the Company's fixed and finite-lived intangible assets, allocation of purchase price to assets acquired and liabilities assumed in purchase business combinations, fair value of indefinite-lived intangible assets, goodwill, the gain on sale of discontinued operations and income taxes. Actual results could differ significantly from those estimates. | ||||||||||||||
Cash and Cash Equivalents | ||||||||||||||
The Company considers all investments with an original maturity of three months or less at date of purchase to be cash equivalents. The Company places its cash and temporary investments with banks and other institutions that it believes have a high credit quality. At December 31, 2014, the Company had deposits with banks in excess of FDIC insured limits and $88.2 million of its cash is on deposit with non-insured institutions such as corporate money market issuers and cash held in foreign banks. The Company's cash and cash equivalents are not subject to any restrictions (see Note 8). As of December 31, 2013 and 2014, the Company held $36.9 million and $57.0 million, respectively, of its cash in Guyanese dollars. While there are risks associated with the conversion of Guyana dollars to U.S. dollars due to limited liquidity in the Guyana foreign currency markets, to date it has not prevented the Company from converting Guyana dollars into U.S. dollars within a given three month period or from converting at a price that reasonably approximates the reported exchange rate. | ||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||
The Company maintains an allowance for doubtful accounts for the estimated probable losses on uncollectible accounts receivable. The allowance is based upon a number of factors including the credit worthiness of customers, the Company's historical experience with customers, the age of the receivable and current market and economic conditions. Such factors are reviewed and updated by the Company on a quarterly basis. Uncollectible amounts are charged against the allowance account. | ||||||||||||||
Materials and Supplies | ||||||||||||||
Materials and supplies primarily include handsets, customer premise equipment, cables and poles and are recorded at the lower of cost or market cost being determined on the basis of specific identification and market determined using replacement cost. | ||||||||||||||
Fixed Assets | ||||||||||||||
The Company's fixed assets are recorded at cost and depreciated using the straight-line method generally between 3 and 39 years. Expenditures for major renewals and betterments that extend the useful lives of fixed assets are capitalized. Repairs and replacements of minor items of property are charged to maintenance expense as incurred. The cost of fixed assets in service and under construction includes an allocation of indirect costs applicable to construction. Grants received for the construction of assets are recognized as a reduction of the cost of fixed assets, a reduction of depreciation expense over the useful lives of the assets and as a reduction of capital expenditures in the statements of cash flows. | ||||||||||||||
The fair value of a liability for an asset retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made. In periods subsequent to initial measurement, period-to-period changes in the liability for an asset retirement obligation resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flows are recognized. The increase in the carrying value of the associated long-lived asset is depreciated over the corresponding estimated economic life. The consolidated balance sheets include accruals of $2.2 million and $2.7 million as of December 31, 2013 and 2014, respectively, for estimated costs associated with asset retirement obligations. | ||||||||||||||
In accordance with the authoritative guidance for the accounting for the impairment or disposal of long-lived assets, the Company evaluates the carrying value of long-lived assets, including property and equipment, in relation to the operating performance and future undiscounted cash flows of the underlying business whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss exists when estimated undiscounted cash flows attributable to an asset are less than its carrying amount. If an asset is deemed to be impaired, the amount of the impairment loss recognized represents the excess of the asset's carrying value as compared to its estimated fair value, based on management's assumptions and projections. | ||||||||||||||
Management's estimate of the future cash flows attributable to its long-lived assets and the fair value of its businesses involve significant uncertainty. Those estimates are based on management's assumptions of future results, growth trends and industry conditions. If those estimates are not met, the Company could have additional impairment charges in the future, and the amounts may be material. | ||||||||||||||
The Company determined that there was no impairment of its fixed assets in any of the three years ending December 31, 2014. | ||||||||||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||
Goodwill is the amount by which the cost of acquired net assets exceeded the fair value of those net assets on the date of acquisition. The Company allocates goodwill to reporting units at the time of acquisition and bases that allocation on which reporting units will benefit from the acquired assets and liabilities. Reporting units are defined as operating segments or one level below an operating segment, referred to as a component. The Company has determined that its reporting units are components of its multiple operating segments. The Company assesses goodwill for impairment on an annual basis in the fourth quarter or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. If the book value of a reporting unit exceeds its fair value, the implied fair value of goodwill is compared with the carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recorded equal to that excess. | ||||||||||||||
A significant majority of the Company's telecommunications licenses are not amortized and are carried at their historical costs. The Company believes that telecommunications licenses generally have an indefinite life based on the historical ability to renew such licenses, that such renewals may be obtained indefinitely and at little cost, and that the related technology used is not expected to be replaced in the foreseeable future. The Company has elected to perform its annual testing of its telecommunications licenses in the fourth quarter of each fiscal year, or more often if events or circumstances indicate that there may be impairment. If the value of these assets were impaired by some factor, such as an adverse change in the subsidiary's operating market, the Company may be required to record an impairment charge. The impairment test consists of a comparison of the fair value of telecommunications licenses with their carrying amount on a license by license basis and as a part of the test the Company assesses the appropriateness of the application of the indefinite-lived assertion. | ||||||||||||||
As of December 31, 2013 and 2014, the Company performed its annual impairment assessment of its goodwill and indefinite-lived intangible assets (telecommunications licenses) and determined that no impairment charge was required. See Note 7 for further details. | ||||||||||||||
Intangible Assets | ||||||||||||||
Intangible assets resulting from the acquisitions of entities accounted for using the purchase method of accounting are estimated by management based on the fair value of assets acquired. These include acquired customer relationships and trade names. Customer relationships are amortized over their estimated lives of 12 years, which are based on the pattern in which economic benefit of the customer relationship is estimated to be realized. | ||||||||||||||
Interest Rate Derivatives | ||||||||||||||
As required by the authoritative guidance on accounting for derivative instruments and hedging activities, the Company recorded all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. | ||||||||||||||
Risk Management Objective of Using Derivatives | ||||||||||||||
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company managed economic risks related to interest rates primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company entered into derivative financial instruments to manage exposures that arose from business activities that resulted in the payment of future known and uncertain cash amounts, the value of which were determined by interest rates. The Company's derivative financial instruments were used to manage differences in the amount, timing, and duration of its known or expected cash payments principally related to the Company's borrowings. As a result of the repayment of its variable rate debt on September 20, 2013, the Company terminated its derivative financial instruments during 2013. See Note 9 for further details. | ||||||||||||||
Debt | ||||||||||||||
Debt is measured at amortized cost. Debt discounts, representing the difference between the proceeds and the principal amount of debt, are amortized as interest expense in the consolidated income statements over the period of the debt on a straight-line basis, which approximates the effective interest method. Debt issuance costs are capitalized as part of other assets in the consolidated balance sheets and are amortized as interest expense in the consolidated income statements over the period of the debt on a straight-line basis, which approximates the effective interest method. Except for interest costs incurred for the construction of a qualifying asset which are capitalized during the period the assets are prepared for their intended use, interest costs are expensed. | ||||||||||||||
Non-Controlling Interests | ||||||||||||||
The non-controlling interests in the accompanying consolidated balance sheets reflect the original investments by the minority stockholders in GT&T, Commnet's consolidated subsidiaries, Bermuda Digital Communications, Islandcom, Sovernet and its consolidated subsidiaries and Ahana Renewables, along with their proportional share of the earnings or losses, net of any distributions. | ||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | ||||||||||||||
Changes in accumulated other comprehensive income (loss), by component, were as follows (in thousands): | ||||||||||||||
Interest | Projected | Translation | Total | |||||||||||
Rate Derivative | Pension | Adjustment | ||||||||||||
Agreements | Benefit | |||||||||||||
Obligation | ||||||||||||||
Balance at December 31, 2012 | $ | (6,985 | ) | $ | (1,318 | ) | $ | 6 | $ | (8,297 | ) | |||
Adjust funded status of pension plan, net of tax of $0.2 million | — | (631 | ) | — | (631 | ) | ||||||||
Foreign currency translation adjustment | — | — | (259 | ) | (259 | ) | ||||||||
Other comprehensive income before reclassifications, net of taxes of $2.3 million | 3,753 | — | — | 3,753 | ||||||||||
Amounts reclassified from accumulated other comprehensive income, net of taxes of $2.0 million | 3,232 | — | — | 3,232 | ||||||||||
| | | | | | | | | | | | | | |
Balance at December 31, 2013 | — | (1,949 | ) | (253 | ) | (2,202 | ) | |||||||
Adjust funded status of pension plan, net of tax of $0.6 million | — | (723 | ) | — | (723 | ) | ||||||||
Foreign currency translation adjustment | — | — | 4 | 4 | ||||||||||
| | | | | | | | | | | | | | |
Balance at December 31, 2014 | $ | — | $ | (2,672 | ) | $ | (249 | ) | $ | (2,921 | ) | |||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Revenue Recognition—Telecommunications | ||||||||||||||
Service revenues are primarily derived from providing access to and usage of the Company's networks and facilities. Access revenues from postpaid customers are generally billed one month in advance and are recognized over the period that the corresponding service is rendered to customers. Revenues derived from usage of the Company's networks, including airtime, roaming, long-distance and Universal Service Fund revenues, are recognized when the services are provided and are included in unbilled revenues until billed to the customer. Prepaid airtime sold to customers is recorded as deferred revenue prior to the commencement of services and is recognized when the airtime is used or expires. The Company offers enhanced services including caller identification, call waiting, call forwarding, three-way calling, voice mail, and text and picture messaging, as well as downloadable wireless data applications, including ringtones, music, games, and other informational content. Generally, these enhanced features generate additional service revenues through monthly subscription fees or increased usage through utilization of the features. Other optional services such as roadside assistance and other equipment protection plans may also be provided for a monthly fee and are either sold separately or bundled and included in packaged rate plans. Revenues from enhanced features and optional services are recognized when earned. Access and usage-based services are billed throughout the month based on the bill cycle assigned to a particular customer. As a result of billing cycle cut-off times, management must estimate service revenues earned but not yet billed at the end of each reporting period. | ||||||||||||||
Sales of communications products including wireless handsets and accessories represent a separate earnings process and are recognized when the products are delivered to and accepted by customers. The Company accounts for transactions involving both the activation of service and the sale of equipment in accordance with the authoritative guidance for the accounting for revenue arrangements with multiple deliverables. Fees assessed to communications customers to activate service are not a separate unit of accounting and are allocated to the delivered item (equipment) and recognized as product sales to the extent that the aggregate proceeds received from the customer for the equipment and activation fee do not exceed the relative fair value of the equipment. | ||||||||||||||
Wholesale revenues are those revenues generated from providing voice or data services to the customers of other wireless carriers principally through "roaming" agreements, and the revenue is recognized over the period that the service is rendered to customers. | ||||||||||||||
Sales and use and state excise taxes collected from customers that are remitted to the governmental authorities are reported on a net basis and excluded from the revenues and sales. | ||||||||||||||
Revenue Recognition—Renewable Energy | ||||||||||||||
Revenue from the Company's Renewable Energy segment is generated from the sale of electricity through long-term power purchase agreements ("PPA's") with various customers, or hosts, that range from 10 to 25 years. The Company, which is required to sell all generated power to the hosts, recognizes revenue from the PPA's as electricity is generated and sold at contractual rates as defined within the respective PPA. | ||||||||||||||
The Company's Renewable Energy segment also generates revenue from the sale of Solar Renewable Energy Credits ("SRECs"). Revenue is recognized as SRECs are sold through long-term purchase agreeements at the contractual rate specified in the agreement. | ||||||||||||||
Accounting for Grants | ||||||||||||||
The Company has received funding from the U.S. Government and its agencies under Stimulus and Universal Service Fund programs. These funding programs are generally designed to fund telecommunications infrastructure expansion into rural or underserved areas of the United States. The funding programs are evaluated to determine if they represent funding related to capital expenditures (capital grants) or operating activities (income grants). | ||||||||||||||
Funding received from Stimulus programs is on a cost-reimbursement basis for capital expenditures incurred by the Company to expand its network and is considered a capital grant. Accordingly, reimbursements for eligible expenditures under the Stimulus programs are recorded as a reduction to property, plant and equipment on the Company's consolidated balance sheets, an investing cash inflow and a future reduction in depreciation expense in the consolidated income statements. The depreciable period for the grant is commensurate with the related assets which typically range from 5 to 20 years. As of December 31, 2014, the Company has spent $92.5 million in capital expenditures of which $67.0 million has been or will be funded by the Stimulus programs. Accordingly, funding received for capital expenditures from the Stimulus Programs is recorded as a reduction to property, plant and equipment on the Company's consolidated balance sheets, an investing cash inflow within capital expenditures and a future reduction in depreciation expense in the consolidated income statements. Funding received for operating costs is recorded as a reduction to the Company's operating expenses in its consolidated statements of income and an operating cash inflow. | ||||||||||||||
Funding received from Universal Service Fund programs is received over time for operating the Company's network in certain rural geographical areas and is considered an income grant. Accordingly, such funding is recognized as operating cash inflows. Once services are provided, revenue is recognized in the Company's consolidated income statements. During the year ended December 31, 2013 and December 31, 2014 the Company received approximately $2.4 million and $3.9 million, respectively, from the Universal Service Fund programs. Of these amounts, $1.6 million and $1.3 million for the years ended December 31, 2013 and December 31, 2014, respectively, were to support our U.S. Wireless business relating to high cost areas. | ||||||||||||||
Funding received from the Mobility Fund, as further described in Note 10, is for the use of both capital expenditures and operating costs incurred by the Company. Accordingly, funding received for capital expenditures from the Mobility Fund is recorded as a reduction to property, plant and equipment on the Company's consolidated balance sheets, an investing cash inflow within capital expenditures and a future reduction in depreciation expense in the consolidated income statements. Funding received for operating costs is recorded as a reduction to the Company's operating expenses in its consolidated income statements and an operating cash inflow. | ||||||||||||||
Compliance with grant requirements is reviewed as of December 31 of each year to ensure that conditions related to grants have been met and there is reasonable assurance that the Company will be able to retain the grant proceeds and to ensure that any contingencies that may arise from not meeting the conditions are appropriately recognized. | ||||||||||||||
Income Taxes | ||||||||||||||
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||||||||||||||
The Company recognizes deferred tax assets to the extent that the Company believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize our deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. | ||||||||||||||
The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related authority. It is possible that the ultimate resolution of these uncertain matters may be greater or less than the amount that the Company estimated. If payment of these amounts proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period in which it is determined that the liabilities are no longer necessary. If the estimate of tax liabilities proves to be more than the ultimate assessment, a further charge to expense would result. | ||||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. | ||||||||||||||
The Company does not provide for United States income taxes on earnings of foreign subsidiaries as such earnings are considered to be indefinitely reinvested. | ||||||||||||||
In September 2013, the U.S. Department of the Treasury and the Internal Revenue Service released final regulations relating to guidance on applying tax rules to amounts paid to acquire, produce or improve tangible personal property as well as rules for materials and supplies effective for tax years beginning on or after January 1, 2014. The Company has reviewed the regulations and has determined that its current method of accounting is appropriate under the regulations with no change required. | ||||||||||||||
Credit Concentrations and Significant Customers | ||||||||||||||
The Company has been historically dependent on a limited amount of customers for its wholesale roaming business. The following table indicates the percentage of revenues generated from a single customer that exceeds 10% of the Company's consolidated revenue in any of the past three years: | ||||||||||||||
Customer | 2012 | 2013 | 2014 | |||||||||||
Verizon | 11 | % | 13 | % | 16 | % | ||||||||
AT&T | 20 | % | 18 | % | 26 | % | ||||||||
No other customer accounted for more than 10% of consolidated revenue in any of the past three years. | ||||||||||||||
The following table indicates the percentage of accounts receivable, from customers that exceed 10% of the Company's consolidated accounts receivable, net of allowances, as of December 31, 2013 and 2014: | ||||||||||||||
Customer | 2013 | 2014 | ||||||||||||
AT&T | 29 | % | 47 | % | ||||||||||
Verizon | 10 | % | 7 | % | ||||||||||
Foreign Currency Gains and Losses | ||||||||||||||
With regard to the Company's Guyana operations, for which the Guyanese dollar is the functional currency, foreign currency transaction gains and losses are included in determining net income. At each balance sheet date, balances denominated in foreign currencies are adjusted to reflect the current exchange rate. For 2012, the value of the Guyana dollar remained relatively constant at approximately G$205 to one U.S. dollar and, as a result, no foreign currency gains or losses were recorded. Beginning in 2013, the value increased to approximately G$210 to one U.S. Dollar. Accordingly, the Company recognized a nominal foreign currency loss during the year ended December 31, 2013 and $1.1 million gain on foreign currency exchanges during the year ended December 31, 2014. As of December 31, 2014, the exchange rate was G$210 to one U.S. Dollar. | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
In accordance with the provisions of fair value accounting, a fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model. | ||||||||||||||
The fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: | ||||||||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset and liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 assets and liabilities include money market funds, debt and equity securities and derivative contracts that are traded in an active exchange market. | |||||||||||||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes corporate obligations and non-exchange traded derivative contracts. | |||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments and intangible assets that have been impaired whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. | |||||||||||||
Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2013 and 2014 are summarized as follows: | ||||||||||||||
December 31, 2013 | ||||||||||||||
Description | Quoted Prices in | Significant Other | Total | |||||||||||
Active Markets | Observable | |||||||||||||
(Level 1) | Inputs | |||||||||||||
(Level 2) | ||||||||||||||
Certificates of deposit | $ | — | $ | 363 | $ | 363 | ||||||||
Money market funds | $ | 2,244 | $ | — | $ | 2,244 | ||||||||
| | | | | | | | | | | ||||
Total assets measured at fair value | $ | 2,244 | $ | 363 | $ | 2,607 | ||||||||
| | | | | | | | | | | ||||
December 31, 2014 | ||||||||||||||
Description | Quoted Prices in | Significant Other | Total | |||||||||||
Active Markets | Observable | |||||||||||||
(Level 1) | Inputs | |||||||||||||
(Level 2) | ||||||||||||||
Certificates of deposit | $ | — | $ | 363 | $ | 363 | ||||||||
Money market funds | $ | 1,493 | $ | — | $ | 1,493 | ||||||||
| | | | | | | | | | | ||||
Total assets measured at fair value | $ | 1,493 | $ | 363 | $ | 1,856 | ||||||||
| | | | | | | | | | | ||||
Debt (Note 8) | $ | — | $ | 38,877 | $ | 38,877 | ||||||||
| | | | | | | | | | | ||||
Total liabilities measured at fair value | $ | — | $ | 38,877 | $ | 38,877 | ||||||||
| | | | | | | | | | | ||||
Certificate of Deposit | ||||||||||||||
As of December 31, 2013 and December 31, 2014, this asset class consisted of a time deposit at a financial institution denominated in U.S. dollars. The asset class is classified within Level 2 of the fair value hierarchy because the fair value was based on observable market data. | ||||||||||||||
Money Market Funds | ||||||||||||||
As of December 31, 2013 and December 31, 2014, this asset class consisted of a money market portfolio that comprises Federal government and U.S. Treasury securities. The asset class is classified within Level 1 of the fair value hierarchy because its underlying investments are valued using quoted market prices in active markets for identical assets | ||||||||||||||
Derivatives | ||||||||||||||
The Company was exposed to certain risks arising from both its business operations and economic conditions. When deemed appropriate, the Company manages economic risks related to interest rates primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company entered into derivative financial instruments to manage exposures that arose from business activities that resulted in the payment of future known and uncertain cash amounts, the value of which were determined by interest rates. The Company's derivative financial instruments were used to manage differences in the amount, timing, and duration of its known or expected cash payments principally related to the Company's borrowings. The principal market in which the Company executes its foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large commercial banks. | ||||||||||||||
Net Income Per Share | ||||||||||||||
Basic net income per share is computed by dividing net income attributable to the Company's stockholders by the weighted-average number of common shares outstanding during the period and does not include any other potentially dilutive securities. Diluted net income per share gives effect to all potentially dilutive securities using the treasury stock method. | ||||||||||||||
The reconciliation from basic to diluted weighted average common shares outstanding is as follows (in thousands): | ||||||||||||||
For the Year Ended | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Basic weighted-average common shares outstanding | 15,531 | 15,704 | 15,898 | |||||||||||
Stock options | 88 | 113 | 115 | |||||||||||
| | | | | | | | | | | ||||
Diluted weighted-average common shares outstanding | 15,619 | 15,817 | 16,013 | |||||||||||
| | | | | | | | | | | ||||
The following notes the number of potential common shares not included in the above calculation because the effects of such were anti-dilutive (in thousands of shares): | ||||||||||||||
For the Year Ended | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Stock options | 367 | 61 | — | |||||||||||
| | | | | | | | | | | ||||
Total | 367 | 61 | — | |||||||||||
| | | | | | | | | | | ||||
Stock-Based Compensation | ||||||||||||||
The Company applies the fair value recognition provisions of the authoritative guidance for the accounting for stock-based compensation and is expensing the fair value of the grants of options to purchase common stock over their vesting period of four years. The Company has not granted options since 2012. Relating to grants of options, the Company recognized $1.8 million, $1.4 million and $0.9 million of non-cash, share-based compensation expense during 2012, 2013 and 2014, respectively. See Note 11 for assumptions used to calculate the fair value of the options granted. | ||||||||||||||
The Company also issued 72,083 restricted shares of common stock in 2012; 100,902 restricted shares of common stock in 2013 and 109,318 restricted shares of common stock in 2014. These shares are being charged to income based upon their fair values over their vesting period of four years. Non-cash equity-based compensation expense, related to the vesting of restricted shares issued was $1.8 million, $3.1 million and $3.4 million in 2012, 2013 and 2014, respectively. | ||||||||||||||
Stock-based compensation expense is recognized within general and administrative expenses within the consolidated income statements. | ||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern . ASU 2014-15 will explicitly require management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. Earlier adoption is permitted. The Company does not expect ASU No. 2014-15 to have a material impact on the consolidated financial position, results of operations, or cash flows. | ||||||||||||||
In June 2014, the FASB issued a standards update on accounting for share-based payments when the terms of the award provide that a performance target could be achieved after a requisite service period. The standard is effective beginning January 1, 2016, with early adoption permitted. The Company does not expect it to have a material impact on our consolidated financial position, results of operations or cash flows. | ||||||||||||||
In May 2014, the FASB issued a standard on revenue recognition providing a single, comprehensive revenue recognition model for all contracts with customers. The revenue standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for reporting periods beginning after December 15, 2016, with no early adoption permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the adoption method options and the impact of the new guidance on our consolidated financial statements. | ||||||||||||||
In April 2014, the FASB issued Accounting Standards Update ("ASU") 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 provides guidance on determining when disposals can be presented as discontinued operations. ASU 2014-08 requires that only disposals representing a strategic shift in operations should be presented as discontinued operations. A strategic shift may include a disposal of a major line of business, major equity method investment or a major part of an entity. Additionally, ASU 2014-08 requires expanded disclosures regarding discontinued operations. This standard is effective prospectively for reporting periods beginning after December 15, 2014. Early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company's consolidated financial statements. | ||||||||||||||
In March 2013, the FASB issued ASU 2013-05, "Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." ASU 2013-05 provides clarification regarding whether ASC 810-10, "Consolidation—Overall" or ASC 830-30, "Foreign Currency Matters—Translation of Financial Statements," applies to the release of cumulative translation adjustments into net income when a reporting entity either sells a part or all of its investment in a foreign entity or ceases to have a controlling financial interest in a subsidiary or group of assets that constitute a business within a foreign entity. The revised standard is effective for reporting periods beginning after December 15, 2013. The adoption of this amendment did not have a material impact on the Company's consolidated financial statements. | ||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the Emerging Issues Task Force)," which states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a company does not have: (i) a net operating loss carryforward; (ii) a similar tax loss; or (iii) a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The authoritative guidance is effective for fiscal years and the interim periods within those fiscal years beginning on or after December 15, 2013 and was applied on a prospective basis. The adoption of this authoritative guidance did not have a material impact on the Company's consolidated financial statements. | ||||||||||||||
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
ACQUISITIONS | |||||
ACQUISITIONS | |||||
3. ACQUISITIONS | |||||
On December 24, 2014, the Company acquired substantially all of the assets of Green Lake Capital, LLC and certain of its affiliates (collectively, "Green Lake"), an owner and operator of commercial distributed generation solar power systems in Massachusetts, California and New Jersey (the "Ahana Acquisition"). The Company acquired these assets as part of a total transaction valued at approximately $117.7 million which is comprised of approximately $78.8 million of cash consideration and the assumption of $38.9 million of debt. The acquisition was performed through the Company's newly formed subsidiary, Ahana Renewables, LLC ("Ahana Renewables"). Certain subsidiaries of Ahana Renewables have been partially capitalized by a third-party tax equity investor. Profits and losses of these subsidiaries will be allocated 99% to the tax equity investor and 1% to the Company up until a certain date (the "Flip Date"), which is the later of a) the five-year anniversary of the placed in service date for the solar assets owned by the subsidiary or, b) the date that the tax equity investor receives a certain return on their original investment in that subsidiary. This date occurs approximate 2 - 4 years from the acquisition date. After the Flip Date, profits and losses of these subsidiaries will be allocated 5% to the tax equity investor and 95% to the Company, and Ahana Renewables has the option to buy-out the non-controlling interests at 10 - 15% of their initial contribution to Green Lake. | |||||
The Ahana Acquisition was accounted for using the purchase method, and Ahana Renewables' results of operations since December 24, 2014 have been included in the Company's new Renewable Energy segment as reported in Note 16. The total purchase consideration of $78.8 million cash was allocated to the assets acquired and liabilities assumed at their estimated fair values as of the date of acquisition as determined by management. The table below represents the preliminary assessment of the total acquisition cost to the net assets of Ahana Renewables based on their acquisition date fair values: | |||||
Total consideration | $ | 78,782 | |||
| | | | | |
| | | | | |
Purchase price allocation: | |||||
Cash | 6,571 | ||||
Other current assets | 2,011 | ||||
Plant and equipment | 111,446 | ||||
Restricted Cash | 5,884 | ||||
Current liabilities | (853 | ) | |||
Long-Term debt | (38,877 | ) | |||
Non-controlling interests | (7,400 | ) | |||
| | | | | |
Net assets acquired | 78,782 | ||||
| | | | | |
The non-controlling interests were valued using an income approach which included the estimated cash flows to the non-controlling interests in the form of distributions and buy-outs. The cash flows were tax affected using a weighted average tax rate of 40% and were discounted at a rate of 11.75% to determine their acquisition date fair value. | |||||
The acquired plant and equipment is comprised of the commercial distributed solar power systems and was valued using an income approach. The assets were assigned an economic life of 25 years, and expected income from the assets was based forecast production and the related sale of energy and solar renewable energy credits, forecast operating expenses, net working capital requirements and tax expense from cash flows and benefits from depreciation of the acquired assets. Cash flows were discounted at an approximate 8% discount rate to determine the plant and equipment acquisition date fair value. | |||||
For the year ended December 31, 2014, the Ahana Acquisition accounted for $0.4 million of the Company's revenue and $2.5 million of the Company's transaction-related charges pertaining to legal, accounting and consulting services. If the acquisition had occurred at the beginning of the current financial reporting period, its impact on the historical revenue and earnings of the Company would not be material. | |||||
DISCONTINUED_OPERATIONS_SALE_O
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS | ||||||||
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS | ||||||||
4. DISCONTINUED OPERATIONS—SALE OF U.S. RETAIL WIRELESS BUSINESS | ||||||||
On September 20, 2013, the Federal Communications Commission announced its approval of the previously announced proposed sale of the Company's U.S. retail wireless business operated under the Alltel name to AT&T Mobility LLC for approximately $780.0 million in cash plus $16.8 million in working capital. The Company previously reported the operations of this business within its U.S. Wireless segment. As a result of that approval, the Company completed the sale of certain U.S. retail wireless assets on that date and recorded a gain in 2013 of approximately $307.1 million calculated as follows (in thousands): | ||||||||
Proceeds: | ||||||||
Received | $ | 702,000 | ||||||
Escrowed | 78,000 | |||||||
Working capital | 16,828 | |||||||
| | | | | | | | |
Adjusted proceeds | 796,828 | |||||||
Less: Net assets sold or impaired: | ||||||||
Assets sold or impaired: | ||||||||
Current assets | 51,597 | |||||||
Property, plant and equipment, net | 190,970 | |||||||
Telecommunications licenses | 50,553 | |||||||
Other intangible assets | 37,434 | |||||||
Other assets | 13,202 | |||||||
Liabilities sold: | ||||||||
Current liabilities | (40,674 | ) | ||||||
Other liabilities | (22,796 | ) | ||||||
| | | | | | | | |
Net assets sold or impaired | 280,286 | |||||||
Less: Transaction related costs | (13,517 | |||||||
) | ||||||||
| | | | | | | | |
Pre-tax gain | 503,025 | |||||||
Less: Income taxes at effective rate | 195,923 | |||||||
| | | | | | | | |
Net gain on sale | $ | 307,102 | ||||||
| | | | | | | | |
| | | | | | | | |
During 2014, the Company recognized an additional $1.1 of gain relating to changes in certain estimates. | ||||||||
The $796.8 million in cash proceeds included $78.0 million of cash held in a general indemnity escrow account. The Company recorded the $78.0 million as restricted cash on its December 31, 2013 balance sheet with $39.0 million classified as a current asset and the remaining $39.0 million classified as long-term based on the timing of the expected cash proceeds. Subject to the terms and conditions of the purchase agreement governing the sale between AT&T Mobility LLC and the Company, $39.0 million was released to the Company during 2014 with the remaining $39.0 million to be released in March 2015. As of December 31, 2014, the Company has recorded the $39.0 million of restricted cash, due to be released to the Company in 2015, as a current asset. | ||||||||
The Alltel trade name was not sold to AT&T Mobility LLC. Due to trade name assignment restrictions, and no planned use through continuing operations, the trade name was fully impaired. As a result, an impairment of $11.9 million was recorded as a part of the disposal and included in the 2013 net gain calculation. | ||||||||
Upon the sale, the Company recorded $28.9 million for the minority shareholders' interests in the sold operation which was based on the estimated final distribution to the minority shareholders. In 2013 and 2014, $18.9 million and $5.8 million, respectively, was distributed to minority shareholders. The Company has included $10.0 million and $4.5 million in non-controlling interests on its December 31, 2013 and 2014 balance sheet, respectively. | ||||||||
The Company has reclassified the assets, which include prepayments and other current assets, and liabilities, which include accounts payable and accrued liabilities, of its Alltel operations to assets of discontinued operations and liabilities of discontinued operations within its December 31, 2013 and December 31, 2014 balance sheets. | ||||||||
Revenues and income from discontinued operations related to the Alltel business for the years ended December 31, 2012 and 2013 were as follows (in thousands): | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
Revenue from discontinued operations | $ | 464,382 | $ | 299,519 | ||||
Income from discontinued operations, net of tax expense (benefit) of $13,816 and $2,512 respectively | 29,202 | 5,166 | ||||||
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
ACCOUNTS RECEIVABLE: | ||||||||
ACCOUNTS RECEIVABLE: | ||||||||
5. ACCOUNTS RECEIVABLE: | ||||||||
As of December 31, 2013 and 2014, accounts receivable consist of the following (in thousands): | ||||||||
2013 | 2014 | |||||||
Retail | $ | 19,833 | $ | 21,367 | ||||
Wholesale | 27,539 | 41,245 | ||||||
Other | 54 | 1,605 | ||||||
| | | | | | | | |
Accounts receivable | 47,426 | 64,217 | ||||||
Less: allowance for doubtful accounts | (9,746 | ) | (11,344 | ) | ||||
| | | | | | | | |
Total accounts receivable, net | $ | 37,680 | $ | 52,873 | ||||
| | | | | | | | |
FIXED_ASSETS
FIXED ASSETS | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
FIXED ASSETS: | |||||||||||
FIXED ASSETS: | |||||||||||
6. FIXED ASSETS: | |||||||||||
As of December 31, 2013 and 2014, property, plant and equipment consisted of the following (in thousands): | |||||||||||
Useful Life | 2013 | 2014 | |||||||||
(in Years) | |||||||||||
Telecommunications equipment and towers | 5 - 15 | $ | 471,265 | $ | 514,814 | ||||||
Solar assets | 20 - 23 | — | 111,446 | ||||||||
Office and computer equipment | 3 - 10 | 46,680 | 46,757 | ||||||||
Buildings | 15 - 39 | 18,002 | 18,079 | ||||||||
Transportation vehicles | 3 - 10 | 6,984 | 7,589 | ||||||||
Leasehold improvements | Shorter of useful life or lease term | 11,380 | 11,494 | ||||||||
Land | — | 1,162 | 1,146 | ||||||||
Furniture and fixtures | 5 - 10 | 5,778 | 8,110 | ||||||||
| | | | | | | | | | | |
Total plant in service | 561,251 | 719,435 | |||||||||
Construction in progress | 45,661 | 43,982 | |||||||||
| | | | | | | | | | | |
Total property, plant, and equipment in service | 606,912 | 763,417 | |||||||||
Less: Accumulated depreciation | (352,280 | ) | (393,835 | ) | |||||||
| | | | | | | | | | | |
Net fixed assets | $ | 254,632 | 369,582 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Depreciation and amortization of fixed assets, using the straight-line method over the assets' estimated useful life, for the years ended December 31, 2012, 2013 and 2014 was $50.0 million, $48.3 million and $50.3 million, respectively. | |||||||||||
For the years ended December 31, 2012, 2013 and 2014, amounts of capital expenditures were offset by grants of $30.6 million, $31.6 million and $2.3 million, respectively. | |||||||||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
7. GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
Goodwill | ||||||||||||||
The Company tests goodwill for impairment on an annual basis, which has been determined to be as of December 31 of each fiscal year. The Company also tests goodwill between annual tests if an event occurs or circumstances change that indicate that the fair value of a reporting unit may be below its carrying value. | ||||||||||||||
The Company employs both qualitative and quantitative tests of its goodwill. For some of the Company's reporting units, the Company performed a qualitative assessment on goodwill to determine whether a quantitative assessment was necessary and determined there were no indicators of potential impairment. For other reporting units the Company evaluated goodwill using a quantitative model. The quantitative test for goodwill impairment is determined using a two-step process. The first step involves a comparison of the estimated fair value of a reporting unit to its carrying amount, including goodwill. In performing the first step, the Company determines the fair value of a reporting unit using a discounted cash flow ("DCF") analysis. Determining fair value requires the exercise of significant judgment, including judgments about appropriate discount rates, perpetual growth rates, and the amount and timing of expected future cash flows. Discount rates are based on a weighted-average cost of capital ("WACC"), which represents the average rate a business must pay its providers of debt and equity. The cash flows employed in the DCF analysis were derived from internal earnings and forecasts and external market forecasts. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step of the impairment test is not necessary. If the carrying amount of a reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed. | ||||||||||||||
The second step of our quantitative test for goodwill impairment compares the implied fair value of the reporting unit's goodwill with its carrying amount of goodwill to measure the amount of impairment loss, if any. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, whereby the estimated fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. | ||||||||||||||
The Company performed its annual impairment assessments of its goodwill as of December 31, 2013 and December 31, 2014 and determined that no impairment charges were required, as the fair value of each reporting unit exceeded its book value. Accordingly, there were no changes in the carrying amounts of goodwill during these years. With the exception of one reporting unit which had fair value 24% higher than its carrying value, all tests yielded a significant cushion. For this reporting unit, key dependencies in the assessment include the timing of a fiber-optic network build-out and customer migration to the network. Variations in the future could result in an impairment of some portion of the reporting unit's goodwill balance which is $7.5 million. | ||||||||||||||
Telecommunications Licenses | ||||||||||||||
The Company tests those telecommunications licenses that are indefinite lived for impairment on an annual basis, which has been determined to be as of December 31 of each fiscal year. The Company also tests telecommunication licenses that are indefinite lived between annual tests if an event occurs or circumstances change that indicate that the fair value of a reporting unit may be below its carrying value. | ||||||||||||||
Indefinite lived telecommunications licenses are tested for impairment on a subsidiary by subsidiary basis using both quantitative and qualitative assessments. As of December 31, 2012 the Company performed a quantitative assessment using a discounted cash flow model (the Greenfield Approach). The Greenfield Approach assumes a company initially owns only the indefinite lived telecommunications licenses, and then makes investments required to build an operation comparable to the one that currently utilizes the licenses. The projected cash flows are based on certain financial factors, including revenue growth rates, margins, and churn rates. | ||||||||||||||
This model then incorporates cash flow assumptions regarding investment in the network, development of distribution channels and the subscriber base, and other inputs for making the business operational. The Company based the assumptions, which underlie the development of the network, subscriber base and other critical inputs of the discounted cash flow model on a combination of average marketplace participant data and our historical results, trends and business plans. The Company also used operating metrics such as capital investment per subscriber, acquisition costs per subscriber, minutes of use per subscriber, etc., to the indefinite lived telecommunications licenses. The terminal value of the subsidiary, which incorporates an assumed sustainable growth rate, is also discounted and is likewise attributed to the indefinite lived licenses. We used a discount rate based on the optimal long-term capital structure of a market participant and its associated cost of debt and equity, to calculate the present value of the projected cash flows. | ||||||||||||||
The Company performed its annual impairment assessment of its indefinite lived telecommunications licenses as of December 31, 2012, and it was determined that no impairment of any of the Company's telecommunications licenses existed during the year ended December 31, 2012 except for one of the Company's reporting units in the Island Wireless segment. The impairment arose from a culmination of factors arising from poor economic conditions in the geographic region which resulted in a fair value determination that was below the book value of the reporting unit's telecommunications license. As a result, the Company recorded a non-cash impairment charge of $3.4 million during the year ended December 31, 2012. | ||||||||||||||
The Company performed a qualitative assessment for its annual impairment assessment of substantially all of its indefinite lived telecommunications licenses as of December 31, 2013 and 2014 and determined that there were no indications of potential impairments, except for one which was tested on a basis in line with the 2012 tests described above. No impairment was identified. | ||||||||||||||
The changes in the carrying amount of the Company's telecommunications licenses, by operating segment, for the three years ended December 31, 2014 were as follows (in thousands): | ||||||||||||||
U.S. | U.S. | Island | Consolidated | |||||||||||
Wireless | Wireline | Wireless | ||||||||||||
Balance at December 31, 2012 | $ | 20,106 | $ | 31 | $ | 19,768 | $ | 39,905 | ||||||
Acquired licenses | 186 | — | — | 186 | ||||||||||
Licenses sold | (404 | ) | — | — | (404 | ) | ||||||||
| | | | | | | | | | | | | | |
Balance at December 31, 2013 | 19,888 | 31 | 19,768 | 39,687 | ||||||||||
Acquired licenses | 5,025 | — | — | 5,025 | ||||||||||
Amortization | — | — | (622 | ) | (622 | ) | ||||||||
| | | | | | | | | | | | | | |
Balance at December 31, 2014 | 24,913 | 31 | 19,146 | 44,090 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
The licenses acquired during 2013 and 2014 were acquired in all cash transactions from various parties and related to licenses expected to be available for use into perpetuity. The Company's Island Wireless segment is amortizing one of its telecommunications licenses through its expiration date of June 2020. | ||||||||||||||
Customer Relationships | ||||||||||||||
The customer relationships, all of which are included in the Island Wireless segment, are being amortized on an accelerated basis, over the expected period during which their economic benefits are to be realized. The Company recorded $0.4 million of amortization related to customer relationships during each of the three years ended December 31, 2014. | ||||||||||||||
Future amortization of customer relationships, in our Island Wireless segment, is as follows (in thousands): | ||||||||||||||
Future | ||||||||||||||
Amortization | ||||||||||||||
2015 | $ | 343 | ||||||||||||
2016 | 309 | |||||||||||||
2017 | 276 | |||||||||||||
2018 | 200 | |||||||||||||
2019 | 145 | |||||||||||||
Thereafter | 223 | |||||||||||||
| | | | | ||||||||||
Total | $ | 1,496 | ||||||||||||
| | | | | ||||||||||
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2014 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | |
8. LONG-TERM DEBT | |
On May 18, 2012, the Company amended and restated its existing credit facility with CoBank, ACB and a syndicate of other lenders (the "Credit Facility") providing for $275.0 million in two term loans and a revolver loan of up to $100.0 million (which includes a $10.0 million swingline sub-facility) and the capacity for additional term loans up to an aggregate of $100.0 million, subject to lender approval. | |
On June 17, 2013, the Company issued approximately $29.8 million in letters of credit to the Universal Service Administrative Company to secure a portion of the pending awards of approximately $68.8 million of Mobility Fund Grants to certain of its subsidiaries. In connection with the Company's Alltel Sale on September 20, 2013, it notified the FCC and USAC that it would no longer be eligible to perform under the terms and conditions of the Alltel Mobility Funds. At that time, USAC chose not to draw any amounts under the Company's letter of credit securing the Alltel Mobility Funds and the Company terminated $19.9 million in letters of credit on November 14, 2013. | |
On September 20, 2013, the Company repaid the two term loans under its Credit Facility in full. The Company incurred nominal fees for the breakage of the term loans that were incurring interest at the London Interbank Offered Rate (LIBOR). In addition, the Company recorded approximately $4.7 million in interest expense during the year ended December 31, 2013 related to accelerated amortization of deferred financing costs associated with the term loans. | |
Amounts the Company borrowed under the term loans bore interest through September 20, 2013 at a rate equal to, at its option, either (i) LIBOR plus an applicable margin ranging between 2.00% to 4.00% or (ii) a base rate plus an applicable margin ranging from 1.00% to 3.00%. The base rate was equal to the higher of (i) 1.50% plus the higher of (x) the one-week LIBOR and (y) the one-month LIBOR; or (ii) the prime rate (as defined in the Credit Facility). The applicable margin was determined based on the ratio of the Company's indebtedness (as defined in the Credit Facility) to its EBITDA (as defined in the Amended Credit Facility). | |
Amounts borrowed under the revolver loan bore interest at a rate equal to, at the Company's option, either (i) LIBOR plus an applicable margin ranging between 2.00% to 3.50% or (ii) a base rate plus an applicable margin ranging from 1.00% to 2.50% (or, in the case of amounts borrowed under the swing-line sub-facility, an applicable margin ranging from 0.50% to 2.00%). The Company also paid a fee ranging from 0.25% to 0.50% of the average daily unused portion of the revolver loan over each calendar quarter, which fee was payable in arrears on the last day of each calendar quarter. | |
On December 19, 2014, the Company amended and restated the Credit Facility to provide for a $225 million revolving credit facility (the "Amended Credit Facility") that includes (i) up to $10 million under the Amended Credit Facility for standby or trade letters of credit, (ii) up to $25 million under the Amended Credit Facility for letters of credit that are necessary or desirable to qualify for disbursements from the FCC's mobility fund and (iii) up to $10 million under a swingline sub-facility. | |
Amounts the Company may borrow under the Amended Credit Facility bear interest at a rate equal to, at its option, either (i) the London Interbank Offered Rate (LIBOR) plus an applicable margin ranging between 1.50% to 1.75% or (ii) a base rate plus an applicable margin ranging from 0.50% to 0.75%. Swingline loans will bear interest at the base rate plus the applicable margin for base rate loans. The base rate is equal to the higher of (i) 1.00% plus the higher of (x) the one-week LIBOR and (y) the one-month LIBOR; (ii) the federal funds effective rate (as defined in the Credit Agreement) plus 0.50% per annum; and (iii) the prime rate (as defined in the Credit Agreement). The applicable margin is determined based on the ratio (as further defined in the Amended Credit Agreement) of the Company's indebtedness to EBITDA. Under the terms of the Amended Credit Agreement, the Company must also pay a fee ranging from 0.175% to 0.250% of the average daily unused portion of the Amended Credit Facility over each calendar quarter. | |
The Amended Credit Facility contains customary representations, warranties and covenants, including a financial covenant that imposes a maximum ration of indebtedness to EBITDA as well as covenants by the Company limiting additional indebtedness, liens, guaranties, mergers and consolidations, substantial asset sales, investments and loans, sale and leasebacks, transactions with affiliates and fundamental changes. In addition, the Amended Credit Facility contains a financial covenant by us that imposes a maximum ratio of indebtedness to EBITDA. As of December 31, 2014, the Company was in compliance with all of the financial covenants of the Amended Credit Facility. | |
As of December 31, 2014, the Company had no borrowings under the Amended Credit Facility and approximately $10.6 million of outstanding letters of credit. | |
Acquisition of Green Lake Capital, LLC | |
In connection with the Ahana Acquisition on December 24, 2014, the Company assumed $38.9 million in long-term debt (the "Ahana Debt"). The Ahana Debt includes multiple loan agreements with banks that bear interest at rates between 4.5% and 6.0%, mature at various times between 2018 and 2023 and are secured by certain solar facilities. Repayment of the Ahana Debt with the banks is made on a monthly basis until maturity. | |
The Ahana Debt also includes a loan from Public Service Electric & Gas (PSE&G). The note payable to PSE&G bears interest at 11.3%, matures in 2027, and is secured by certain solar facilities. Repayment of the Ahana Debt with PSE&G can be made in either cash or SRECs, at the Company's discretion, with the value of the SRECs being the current market value as of the date of repayment. | |
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||
9. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||
The Company's objective in using interest rate derivatives was to add stability to interest expense and to manage its exposure to the interest rate movements of its variable-rate debt. To accomplish this objective, the Company primarily used interest rate derivatives as part of its interest rate risk management strategy. Interest rate derivatives designated as cash flow hedges involved the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. | ||||||||||||
The effective portion of changes in the fair value of interest rate derivatives designated and that qualified as cash flow hedges was recorded in accumulated other comprehensive income and was subsequently reclassified into earnings in the period that the hedged forecasted transaction affected earnings. | ||||||||||||
As a result of the repayment of its variable-rate debt on September 20, 2013, the Company terminated its interest rate derivatives and paid $5.4 million, the net fair value of those derivatives, to its counterparties. The Company recognized this amount as an expense during the year ended December 31, 2013 and as a separate line in the consolidated income statements. | ||||||||||||
Amounts previously reported in accumulated other comprehensive income related to the interest rate derivatives were reclassified to "Unrealized loss on interest rate derivative contracts" as of the date of the prepayment of the Company's outstanding term notes. | ||||||||||||
The table below presents the effect of the Company's derivative financial instruments on the consolidated income statements for the year ended December 31, 2013 (in thousands): | ||||||||||||
Year Ended December 31, | Derivative in Cash Flow | Amount of Gain or | Location of Gain or | Amount of Gain or | ||||||||
Hedging Relationships | (Loss) Recognized | (Loss) Reclassified | (Loss) Reclassified | |||||||||
in Other | from Accumulated | from Accumulated | ||||||||||
Comprehensive | Other | Other | ||||||||||
Income on | Comprehensive | Comprehensive | ||||||||||
Derivative | Income into Income | Income into | ||||||||||
(Effective Portion) | (Effective Portion) | Income | ||||||||||
(Effective Portion) | ||||||||||||
2013 | Interest Rate Swap | $ | 6,255 | Interest expense | $ | 764 | ||||||
MOBILITY_FUND_GRANTS
MOBILITY FUND GRANTS | 12 Months Ended |
Dec. 31, 2014 | |
MOBILITY FUND GRANTS | |
MOBILITY FUND GRANTS | |
10. MOBILITY FUND GRANTS | |
As part of the Federal Communications Commission's ("FCC") reform of its Universal Service Fund ("USF") program, which previously provided support to carriers seeking to offer telecommunications services in high-cost areas and to low-income households, the FCC created two new funds, including the Mobility Fund, a one-time award meant to support wireless coverage in underserved geographic areas in the United States. In August 2013, the Company received FCC final approval for approximately $47.0 million of Mobility Fund support to its Alltel business (the "Alltel Mobility Funds") and $21.7 million of Mobility Fund support to its wholesale wireless business (the "Wholesale Mobility Funds" and collectively with the Alltel Mobility Funds, the "Mobility Funds"), to expand voice and broadband networks in certain geographic areas in order to offer either 3G or 4G coverage. As part of the receipt of the Mobility Funds, the Company committed to comply with certain additional FCC construction and other requirements. A portion of these funds will be used to offset network capital costs and a portion is used to offset the costs of supporting the networks for a period of five years. In connection with the Company's application for the Mobility Funds, the Company issued approximately $29.8 million in letters of credit to the Universal Service Administrative Company ("USAC") in June 2013 to secure these obligations. If the Company fails to comply with any of the terms and conditions upon which the Mobility Funds were granted, or if it loses eligibility for the Mobility Funds, USAC will be entitled to draw the entire amount of the letter of credit applicable to the affected project plus penalties and may disqualify the Company from the receipt of additional Mobility Fund support. | |
In connection with the Company's sale of its Alltel business on September 20, 2013, it notified the FCC and USAC that it would no longer be eligible to perform under the terms and conditions of the Alltel Mobility Funds. At that time, USAC chose not to draw any amounts under our letter of credit securing the Alltel Mobility Funds and the Company made a cash payment of approximately $4.6 million in penalty fees to USAC. The Company was reimbursed for these penalty fees by AT&T Mobility in January 2014. The Company terminated $19.9 million of letters of credit securing the Alltel Mobility Funds on November 13, 2013. | |
The Company began the construction of its Wholesale Mobility Funds projects during the third quarter of 2013 and its results are included in the Company's "U.S. Wireless" segment. As of December 31, 2014, the Company has received approximately $7.3 million in Wholesale Mobility Funds. Of these funds, $1.2 million was recorded as an offset to the cost of the property, plant, and equipment associated with these projects and, consequentially, a reduction of future depreciation expense and $2.3 million is recorded within other current liabilities while the remaining $3.8 million is recorded within other long-term liabilities in the Company's consolidated balance sheet as of December 31, 2014. The balance sheet presentation is based on the timing of the expected usage of the funds which will reduce future operations expenses. | |
EQUITY
EQUITY | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
EQUITY | ||||||||||||||
EQUITY | ||||||||||||||
11. EQUITY | ||||||||||||||
Common Stock | ||||||||||||||
The Company has paid quarterly dividends on its common stock since January 1999. | ||||||||||||||
Treasury Stock | ||||||||||||||
During 2012, 2013 and 2014, the Company repurchased the following shares from employees to satisfy tax withholding and stock options exercise obligations incurred in connection with the vesting of restricted stock awards and the exercise of stock options: | ||||||||||||||
Year Ended December 31 | Shares | Aggregate | Average | |||||||||||
Repurchased | Cost | Repurchase | ||||||||||||
(in thousands) | Price | |||||||||||||
2012 | 9,175 | $ | 344 | $ | 37.51 | |||||||||
2013 | 163,222 | 8,103 | 49.64 | |||||||||||
2014 | 34,293 | 2,161 | 63.01 | |||||||||||
Stock-Based Compensation | ||||||||||||||
The Company has 2,000,000 shares reserved for the grant of stock options, restricted stock, restricted stock units, stock equivalents and awards of shares of common stock that are not subject to restrictions or forfeiture. | ||||||||||||||
Stock Options | ||||||||||||||
Stock options have a term of ten years and vest annually and ratably over a period of four years. | ||||||||||||||
The following table summarizes stock option activity for the years ended December 31, 2013 and 2014: | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||
Number of | Weighted Avg. | Weighted Average | Aggregate | |||||||||||
Options | Exercise | Remaining | Intrinsic Value | |||||||||||
Price | Contractual | |||||||||||||
Term (Years) | ||||||||||||||
Outstanding at January 1, 2013 | 720,448 | $ | 34.31 | |||||||||||
Exercised | (303,536 | ) | 30.64 | |||||||||||
Forfeited—Vested | (11,625 | ) | 46.01 | |||||||||||
Forfeited—Unvested | (4,000 | ) | 45.22 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 31, 2013 | 401,287 | 36.63 | 6 | $ | 8,000,149 | |||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Vested and expected to vest at December 31, 2013 | 398,036 | 35.86 | 6 | $ | 7,934,478 | |||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at December 31, 2013 | 241,662 | 35.86 | 5.2 | $ | 5,004,299 | |||||||||
| | | | | | | | | | | | | | |
Year Ended December 31, 2014 | ||||||||||||||
Number of | Weighted Avg. | Weighted Average | Aggregate | |||||||||||
Options | Exercise | Remaining | Intrinsic Value | |||||||||||
Price | Contractual | |||||||||||||
Term (Years) | ||||||||||||||
Outstanding at January 1, 2014 | 401,287 | $ | 36.63 | |||||||||||
Exercised | (43,034 | ) | 37.68 | |||||||||||
Forfeited—Unvested | (7,000 | ) | 34.22 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 31, 2014 | 351,253 | 36.55 | 5 | $ | 10,901,529 | |||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Vested and expected to vest at December 31, 2014 | 351,142 | 36.56 | 5 | $ | 10,987,590 | |||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at December 31, 2014 | 290,128 | 36.81 | 4.6 | $ | 8,929,815 | |||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
The unvested options as of December 31, 2014 represent $0.4 million in unamortized stock-based compensation which will be recognized over a weighted average term of 1.0 years. | ||||||||||||||
The following table summarizes information relating to options granted and exercised during 2012, 2013 and 2014 (in thousands, except fair value of options granted data): | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Weighted-average fair value of options granted | $ | 15.27 | $ | N/A | $ | N/A | ||||||||
Aggregate intrinsic value of options exercised | 938 | 6,111 | 1,098,336 | |||||||||||
Cash proceeds received upon exercise of options | 1,452 | 2,669 | 1,621 | |||||||||||
Excess tax benefits from share-based compensation | (362 | ) | 2,101 | 513 | ||||||||||
The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between our closing common stock price on December 31st and the exercise price, multiplied by the number of the in-the-money stock options) that would have been received by the stock option holders had all stock options holders exercised their stock options on December 31st. The amount of aggregate intrinsic value will change based on the fair market value of our common stock. The estimated fair value of the options granted were determined using a Black Scholes option pricing model, based on the following weighted average assumptions: | ||||||||||||||
Options Granted in | ||||||||||||||
2012 | ||||||||||||||
Risk-free interest rate | 1.40% | |||||||||||||
Expected dividend yield | 2.50% | |||||||||||||
Expected life | 6.25 years | |||||||||||||
Expected volatility | 53% | |||||||||||||
The Company recognized $1.8 million, $1.4 million and $0.9 million, respectively, of stock compensation expense relating to the granted options during 2012, 2013 and 2014, respectively. | ||||||||||||||
Restricted Stock | ||||||||||||||
Restricted stock issued under the 2008 Equity Investment Plan vests ratably over four years. | ||||||||||||||
The following table summarizes restricted stock activity during the year ended December 31, 2013: | ||||||||||||||
Shares | Weighted Avg. | |||||||||||||
Fair Value | ||||||||||||||
Unvested as of January 1, 2013 | 103,853 | $ | 39.63 | |||||||||||
Granted | 100,902 | 48.54 | ||||||||||||
Forfeited | (250 | ) | 46.85 | |||||||||||
Vested and issued | (49,986 | ) | 43.96 | |||||||||||
| | | | | | | | |||||||
Unvested as of December 31, 2013 | 154,519 | $ | 44.04 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
The following table summarizes restricted stock activity during the year ended December 31, 2014: | ||||||||||||||
Shares | Weighted Avg. | |||||||||||||
Fair Value | ||||||||||||||
Unvested as of January 1, 2014 | 154,519 | $ | 44.04 | |||||||||||
Granted | 109,318 | 64.73 | ||||||||||||
Forfeited | (8,500 | ) | 51.44 | |||||||||||
Vested and issued | (60,194 | ) | 44.61 | |||||||||||
| | | | | | | | |||||||
Unvested as of December 31, 2014 | 195,143 | $ | 55.13 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
In connection with the grant of restricted shares, the Company recognized $1.8 million, $3.1 million and $3.4 million of compensation expense within its income statements for 2012, 2013 and 2014, respectively. | ||||||||||||||
The unvested shares as of December 31, 2014 represent $8.1 million in unamortized stock based compensation which will be recognized over a weighted average period of 2.8 years. | ||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INCOME TAXES | |||||||||||
INCOME TAXES | |||||||||||
12. INCOME TAXES | |||||||||||
The components of income before income taxes for the years ended December 31, 2012, 2013 and 2014 are as follows (in thousands): | |||||||||||
2012 | 2013 | 2014 | |||||||||
Domestic | $ | 26,249 | $ | 13,697 | $ | 57,767 | |||||
Foreign | 18,547 | 32,776 | 28,401 | ||||||||
| | | | | | | | | | | |
Total | $ | 44,796 | $ | 46,473 | $ | 86,168 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The following is a reconciliation from the tax computed at statutory income tax rates to the Company's income tax expense for the years ended December 31, 2012, 2013, and 2014 (in thousands): | |||||||||||
2012 | 2013 | 2014 | |||||||||
Tax computed at statutory U.S. federal income tax rates | $ | 15,679 | $ | 16,270 | $ | 30,160 | |||||
Income taxes in excess (below) statutory U.S. tax rates: | |||||||||||
Guyana | 812 | 701 | (130 | ) | |||||||
Bermuda and Turks & Caicos | 503 | (3,203 | ) | (4,712 | ) | ||||||
Turks & Caicos intercompany note receivable write-down | — | (8,572 | ) | — | |||||||
Valuation allowance | 832 | 711 | (887 | ) | |||||||
Foreign tax reserve | 2,359 | 2,081 | 2,095 | ||||||||
State taxes | 906 | 1,032 | 1,813 | ||||||||
Research and development credit | (1,971 | ) | — | — | |||||||
Other, net | 1,711 | 516 | (191 | ) | |||||||
| | | | | | | | | | | |
Income tax expense | $ | 20,831 | $ | 9,536 | $ | 28,148 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The components of income tax expense (benefit) for the years ended December 31, 2012, 2013 and 2014 are as follows (in thousands): | |||||||||||
2012 | 2013 | 2014 | |||||||||
Current: | |||||||||||
United States—Federal | $ | 4,812 | $ | 1,703 | $ | 14,761 | |||||
United States—State | 2,418 | 895 | 1,347 | ||||||||
Foreign | 11,099 | 11,787 | 12,153 | ||||||||
| | | | | | | | | | | |
Total current income tax expense | $ | 18,329 | $ | 14,385 | $ | 28,261 | |||||
| | | | | | | | | | | |
Deferred: | |||||||||||
United States—Federal | $ | 4,050 | $ | (5,273 | ) | $ | 5,205 | ||||
United States—State | (1,011 | ) | 169 | 466 | |||||||
Foreign | (537 | ) | 255 | (5,784 | ) | ||||||
| | | | | | | | | | | |
Total deferred income tax expense (benefit) | 2,502 | (4,849 | ) | (113 | ) | ||||||
| | | | | | | | | | | |
Consolidated: | |||||||||||
United States—Federal | $ | 8,862 | $ | (3,570 | ) | $ | 19,966 | ||||
United States—State | 1,407 | 1,064 | 1,813 | ||||||||
Foreign | 10,562 | 12,042 | 6,369 | ||||||||
| | | | | | | | | | | |
Total income tax expense | $ | 20,831 | $ | 9,536 | $ | 28,148 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The significant components of deferred tax assets and liabilities are as follows as of December 31, 2013 and 2014 (in thousands): | |||||||||||
2013 | 2014 | ||||||||||
Deferred tax assets: | |||||||||||
Receivables reserve | $ | 1,225 | $ | 1,321 | |||||||
Temporary differences not currently deductible for tax | 6,690 | 8,001 | |||||||||
Deferred compensation | 1,702 | 2,019 | |||||||||
Foreign tax credit carryforwards | 13,575 | 10,576 | |||||||||
Pension | — | 436 | |||||||||
Net operating losses | 2,822 | 4,171 | |||||||||
Valuation allowance | (16,312 | ) | (13,763 | ) | |||||||
| | | | | | | | ||||
Total deferred tax asset | 9,702 | 12,761 | |||||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Property, plant and equipment, net | $ | 23,866 | $ | 27,681 | |||||||
Intangible assets, net | 11,245 | 12,021 | |||||||||
Tax on foreign earnings | — | 1,050 | |||||||||
Pension | 205 | — | |||||||||
| | | | | | | | ||||
Total deferred tax liabilities | 35,316 | 40,752 | |||||||||
| | | | | | | | ||||
Net deferred tax liabilities | $ | 25,614 | $ | 27,991 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Deferred tax assets and liabilities are reflected in the accompanying consolidated balance sheets as follows (in thousands): | |||||||||||
2013 | 2014 | ||||||||||
Deferred tax assets: | |||||||||||
Current | $ | 1,994 | $ | 2,588 | |||||||
Long term | — | — | |||||||||
| | | | | | | | ||||
Total deferred tax asset | $ | 1,994 | $ | 2,588 | |||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Current | $ | 1,601 | $ | 213 | |||||||
Long term | 26,007 | 30,366 | |||||||||
| | | | | | | | ||||
Total deferred tax liabilities | $ | 27,608 | $ | 30,579 | |||||||
| | | | | | | | ||||
Net deferred tax liabilities | $ | 25,614 | $ | 27,991 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
As of December 31, 2014, the Company estimated that it had gross state and foreign net operating loss ("NOL") carryforwards of $32.1 million and $8.7 million respectively. The state NOL's will expire at various dates between 2015 and 2028. The foreign NOL consists of $6.1 million from Aruba, which will expire between 2015 and 2019. The remaining foreign NOL is from Guyana, and has no expiration. The Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing NOL deferred tax assets. A significant piece of negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2014. On the basis of this evaluation, the Company believes it is more likely than not that the benefit from these state and foreign NOL carryforwards will not be realized. In recognition of this risk at December 31, 2014, the Company provided a valuation allowance of $1.7 million and $1.4 million for the state and foreign NOL carryforwards, respectively. At December 31, 2013 our state and foreign NOL carryforward valuation allowance was $1.1 million and $1.6 million, respectively. | |||||||||||
As of December 31, 2014 and 2013, the Company had $10.5 million and $13.6 million of foreign tax credits. During the years ended December 31, 2014 and 2013, $3.0 million and $1.8 million foreign tax credit carryforwards expired. The remaining amounts that will expire in 2015 and 2016. Similar to prior years, the Company examined its projected mix of foreign source and U.S.-source earnings and concluded it is more likely than not that it will not generate enough foreign source income to utilize its existing foreign tax credits prior to their expiration date. As a result, the Company has continued to maintain a full valuation allowance against these credits through December 31, 2014. | |||||||||||
The Company has approximately $131.6 million of undistributed earnings of its foreign subsidiaries that as of December 31, 2014 are considered to be indefinitely reinvested and, accordingly, no U.S. federal and state income taxes have been provided thereon. Determination of the amount of unrecognized deferred U.S. income tax liability is not practical because of the complexities associated with its hypothetical calculation. | |||||||||||
The Company had net unrecognized tax benefits of $10.3 million as of December 31, 2012, $14.0 million as of December 31, 2013 and $16.5 million as of December 31, 2014. The net increase of the reserve during the year ended December 31, 2014 was attributable to additions to uncertain tax positions taken in the current and prior years and reductions resulting from the lapse of statute of limitation in one jurisdiction and the settlement of interest related to a prior Internal Revenue Service audit. The following shows the activity related to unrecognized tax benefits during the three years ended December 31, 2014 (in thousands): | |||||||||||
Gross unrecognized tax benefits at December 31, 2011 | $ | 6,952 | |||||||||
Increase in uncertain tax positions | 3,384 | ||||||||||
Lapse in statute of limitations | — | ||||||||||
| | | | | |||||||
Gross unrecognized tax benefits at December 31, 2012 | 10,336 | ||||||||||
Increase in uncertain tax positions | 4,137 | ||||||||||
Lapse in statute of limitations | — | ||||||||||
Settlements | (423 | ) | |||||||||
| | | | | |||||||
Gross unrecognized uncertain tax benefits at December 31, 2013 | 14,050 | ||||||||||
Increase in uncertain tax positions | 1,675 | ||||||||||
Lapse in statute of limitations | (226 | ) | |||||||||
Settlements | — | ||||||||||
| | | | | |||||||
Gross unrecognized uncertain tax benefits at December 31, 2014 | $ | 15,499 | |||||||||
| | | | | |||||||
| | | | | |||||||
The Company's accounting policy is to classify interest and penalties related to income tax matters as part of income tax expense. The accrued amounts for interest and penalties are $1.0 million as of December 31, 2014, and $0.4 million as of December 31, 2013, and $0.5 million as of December 31, 2012. | |||||||||||
All $16.5 million of unrecognized tax benefits would affect the effective tax rate if recognized. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes, if material. | |||||||||||
The Company and its subsidiaries file income tax returns in the U.S. and in various state and local jurisdictions. The statute of limitations related to the consolidated U.S. federal income tax return is closed for all tax years up to and including 2010. The expiration of the statute of limitations related to the various state income tax returns that the Company and subsidiaries file varies by state. The Company does not expect that the amount of unrecognized tax benefits relating to U.S. tax matters will change significantly within the next 12 months. | |||||||||||
The Company also files an income tax return in Guyana. See Note 14 relating to certain tax matters pertaining to those filings. There is no expected settlement date of those matters and upon settlement, which might not occur in the near future, the payment may vary significantly from the amounts currently recorded. The Company will continue to update amounts recorded as new developments arise. | |||||||||||
RETIREMENT_PLANS
RETIREMENT PLANS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
RETIREMENT PLANS | ||||||||||||||
RETIREMENT PLANS | ||||||||||||||
13. RETIREMENT PLANS | ||||||||||||||
The Company has a noncontributory defined benefit pension plan for eligible employees of GT&T who meet certain age and employment criteria. Company contributions to fund the plan are intended to provide not only for benefits attributed for service to date but also for those expected to be earned in the future. The Company's funding policy is to contribute to the plan such amounts as are actuarially determined to meet funding requirements. The benefits are based on the participants' average salary or hourly wages during the last three years of employment and credited service years. | ||||||||||||||
The weighted-average rates assumed in the actuarial calculations for the pension plan are as follows as of December 31, 2012, 2013 and 2014: | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Discount rate | 6.00 | % | 5.75 | % | 5.75 | % | ||||||||
Annual salary increase | 7.50 | % | 7.50 | % | 6.50 | % | ||||||||
Expected long-term return on plan assets | 8.00 | % | 7.00 | % | 7.00 | % | ||||||||
The expected long-term rate of return on pension plan assets was determined based on several factors including input from pension investment consultants, projected long-term returns of equity and bond indices in Guyana and elsewhere, including the United States, and historical returns over the life of the related obligations of the fund. The Company, in conjunction with its pension investment consultants, reviews its asset allocation periodically and rebalances its investments when appropriate in an effort to earn the expected long-term returns. The Company will continue to evaluate its long-term rate of return assumptions at least annually and will adjust them as necessary. | ||||||||||||||
Changes during the year in the projected benefit obligations and in the fair value of plan assets are as follows for 2013 and 2014 (in thousands): | ||||||||||||||
2013 | 2014 | |||||||||||||
Projected benefit obligations: | ||||||||||||||
Balance at beginning of year: | $ | 11,660 | $ | 12,237 | ||||||||||
Service cost | 543 | 612 | ||||||||||||
Interest cost | 665 | 720 | ||||||||||||
Benefits and settlements paid | (1,444 | ) | (623 | ) | ||||||||||
Actuarial (loss) gain | 1,127 | 1,129 | ||||||||||||
Exchange rate adjustment | (314 | ) | 18 | |||||||||||
| | | | | | | | |||||||
Actuarial loss | $ | 12,237 | $ | 14,093 | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Plan net assets: | ||||||||||||||
Balance at beginning of year: | $ | 12,932 | $ | 12,673 | ||||||||||
Actual return on plan assets | 657 | 267 | ||||||||||||
Company contributions | 854 | 832 | ||||||||||||
Benefits and settlements paid | (1,444 | ) | (623 | ) | ||||||||||
Exchange rate adjustment | (326 | ) | 16 | |||||||||||
| | | | | | | | |||||||
Balance at end of year | $ | 12,673 | $ | 13,165 | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Over (under) funded status of plan | $ | 436 | $ | (928 | ) | |||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
The Company's investment policy for its pension assets is to have a reasonably balanced investment approach, with a long-term bias toward debt investments. The Company's strategy allocates plan assets among equity, debt and other assets in both Guyana and the United States to achieve long-term returns without significant risk to principal. The fund is prohibited under Guyana law from investing in the equity, debt or other securities of the employer, its subsidiaries or associates of the employer or any company of which the employer is a subsidiary or an associate. Furthermore, the plan must invest between 70%-80% of its total plan assets within Guyana. | ||||||||||||||
The fair values for the pension plan's net assets, by asset category, at December 31, 2014 are as follows (in thousands): | ||||||||||||||
Asset Category | Total | Level 1 | Level 2 | Level 3 | ||||||||||
Cash, cash equivalents, money markets and other | $ | 10,532 | $ | 9,784 | $ | 748 | $ | — | ||||||
Equity securities | 1,711 | 1,711 | — | — | ||||||||||
Fixed income securities | 922 | 922 | — | — | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 13,165 | $ | 12,417 | $ | 748 | $ | — | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
The plan's weighted-average asset allocations at December 31, 2013 and 2014, by asset category are as follows: | ||||||||||||||
2013 | 2014 | |||||||||||||
Cash, cash equivalents, money markets and other | 77.0 | % | 80.0 | % | ||||||||||
Equity securities | 11.1 | 13.0 | ||||||||||||
Fixed income securities | 11.9 | 7.0 | ||||||||||||
| | | | | | | | |||||||
Total | 100 | % | 100 | % | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Amounts recognized on the Company's consolidated balance sheets consist of (in thousands): | ||||||||||||||
As of December 31, | ||||||||||||||
2013 | 2014 | |||||||||||||
Other assets | $ | 436 | $ | — | ||||||||||
Other Liabilities | — | 928 | ||||||||||||
Accumulated other comprehensive loss, net of tax | (1,949 | ) | (2,672 | ) | ||||||||||
Amounts recognized in accumulated other comprehensive loss consist of (in thousands): | ||||||||||||||
2013 | 2014 | |||||||||||||
Net actuarial loss | $ | (2,154 | ) | $ | (3,148 | ) | ||||||||
Prior service cost | — | — | ||||||||||||
| | | | | | | | |||||||
Accumulated other comprehensive loss, pre-tax | $ | (2,154 | ) | $ | (3,148 | ) | ||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Accumulated other comprehensive loss, net of tax | $ | (1,949 | ) | $ | (2,672 | ) | ||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Components of the plan's net periodic pension cost are as follows for the years ended December 31, 2012, 2013 and 2014 (in thousands): | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Service cost | $ | 612 | $ | 543 | $ | 612 | ||||||||
Interest cost | 810 | 665 | 720 | |||||||||||
Expected return on plan assets | (972 | ) | (949 | ) | (848 | ) | ||||||||
Amortization of unrecognized net actuarial loss | 242 | 150 | 218 | |||||||||||
Amortization of prior service costs | — | — | — | |||||||||||
| | | | | | | | | | | ||||
Net periodic pension cost | $ | 692 | $ | 409 | $ | 702 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
For the year ended December 31, 2015, the Company expects to contribute approximately $543,000 to its pension plan. | ||||||||||||||
The following estimated pension benefits, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as indicated below (in thousands): | ||||||||||||||
Fiscal Year | Pension | |||||||||||||
Benefits | ||||||||||||||
2015 | 565 | |||||||||||||
2016 | 629 | |||||||||||||
2017 | 634 | |||||||||||||
2018 | 761 | |||||||||||||
2019 | 677 | |||||||||||||
2020 - 2024 | 4,865 | |||||||||||||
| | | | | ||||||||||
$ | 8,131 | |||||||||||||
| | | | | ||||||||||
| | | | | ||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES | |||||
COMMITMENTS AND CONTINGENCIES | |||||
14. COMMITMENTS AND CONTINGENCIES | |||||
The Company and its subsidiaries are subject to certain regulatory and legal proceedings and other claims arising in the ordinary course of business, some of which involve claims for damages and taxes that are substantial in amount. The Company believes that, except for the items discussed below, for which the Company is currently unable to predict the final outcome, the disposition of proceedings currently pending will not have a material adverse effect on the Company's financial position or results of operations. | |||||
The Company had previously amended its Amended Credit Facility to provide for an additional $55 million letter of credit sub-facility to its revolver loan to be available for issuance in connection with the Company's Mobility Fund Grant obligations. On June 17, 2013, the Company issued approximately $29.8 million in letters of credit to the Universal Service Administrative Company to secure a portion of the pending awards of approximately $68.8 million of Mobility Fund Grants to certain of its subsidiaries. In connection with the Company's sale of its Alltel business on September 20, 2013, it notified the FCC and USAC that it would no longer be eligible to perform under the terms and conditions of the Alltel Mobility Funds. At that time, USAC chose not to draw any amounts under our letter of credit securing the Alltel Mobility Funds and the Company terminated $19.9 million in letters of credit on November 14, 2013. See Note 10 for further information about the Mobility Fund. The letters of credit accrue a fee at a rate of 1.75% per annum on the outstanding amounts. As of December 31, 2013 the Company had approximately $9.9 million in letters of credit payable to USAC outstanding to cover its Mobility Fund obligations and there were no draw downs against these letters of credit. If the Company fails to comply with certain terms and conditions upon which the Mobility Fund Grants are to be granted, or if it loses eligibility for Mobility Fund support, USAC will be entitled to draw the entire amount of the letter of credit applicable to the affected project including penalties. The results of the Company's Mobility Fund projects, once initiated, will be included in the Company's "U.S. Wireless" segment. | |||||
Currently, the Company's Guyana subsidiary, GT&T, holds a license to provide domestic fixed services and international voice and data services in Guyana on an exclusive basis until December 2030. Since 2001, the Government of Guyana has stated its intention to introduce additional competition into Guyana's telecommunications sector. Since that time, the Company and GT&T have met on several occasions with officials of the Government of Guyana to discuss potential modifications of GT&T's exclusivity and other rights under the existing agreement and license. In 2012, the Government of Guyana introduced draft legislation in Parliament that, if enacted, would have the effect of terminating the Company's exclusive license rights by permitting other telecommunications carriers to receive licenses to provide domestic fixed services and international voice and data services in Guyana. Along with the draft legislation, the Government also released drafts of new regulations and licenses (collectively, the "Draft Laws"). These Draft Laws would also introduce material changes to many other features of Guyana's existing telecommunications regulatory regime. While little or no substantive actions were taken on the Draft Laws since 2012, the Company cannot predict when or if the proposed legislation will be adopted by Parliament or, if adopted and then signed into law by the President, the manner in which it would be implemented by the Minister of Telecommunications and the PUC. Although the Company believes that it would be entitled to damages or other compensation for any involuntary termination of its contractual exclusivity rights, it cannot guarantee that the Company would prevail in a proceeding to enforce its rights or that its actions would effectively halt any unilateral action by the Government. | |||||
Historically, GT&T has been subject to other litigation proceedings and disputes in Guyana that, while not conclusively resolved, to the Company's knowledge have not been the subject of discussions or other significant activity in the last five years. It is possible, but not likely, that these disputes, as discussed below, may be revived. The Company believes that none of these additional proceedings would, in the event of an adverse outcome, have a material impact on the Company's consolidated financial position, results of operation or liquidity. | |||||
In a letter dated September 8, 2006, the National Frequency Management Unit ("NFMU") agreed that total spectrum fees in Guyana should not increase for the years 2006 and 2007. However, that letter implied that spectrum fees in 2008 and onward may be increased beyond the amount GT&T agreed to with the Government. GT&T has objected to the NFMU's proposed action and reiterated its position that an increase in fees prior to development of an acceptable methodology would violate the Government's prior agreement. In 2011, GT&T paid the NFMU $2.6 million representing payments in full for 2008, 2009 and 2010. However, by letter dated November 23, 2011, the NFMU stated that it did not concur with GT&T's inference that the amount was payment in full for the specified years as it was their continued opinion that the final calculation for GSM spectrum fees was not agreed upon and was still an outstanding issue. By further letter dated November 24, 2011, the NFMU further rejected a proposal that was previously submitted jointly by GT&T and Digicel which outlined a recommended methodology for the calculation of these fees. The NFMU stated that it would prepare its own recommendation which it would send to the Minister of Telecoms for decision of the matter. GT&T paid additional spectrum fees in 2012 according to the methodology used for its 2011 payments, and have reserved amounts payable for 2013 and 2014 according to this methodology. There have been no further discussions on this subject and GT&T has not had the opportunity to review any recommendation made to the Minister. | |||||
In November 2007, Caribbean Telecommunications Limited ("CTL") filed a complaint in the U.S. District Court for the District of New Jersey against GT&T and ATN claiming breach of an interconnection agreement for domestic cellular services in Guyana and related claims. CTL asserted over $200 million in damages. GT&T and ATN moved to dismiss the complaint on procedural and jurisdictional grounds. On January 26, 2009, the court granted the motions to dismiss the complaint on the grounds asserted. On November 7, 2009 and again on April 4, 2013, CTL filed a similar claim against GT&T and the PUC in the High Court of Guyana. The Company believes these claims are without merit and are duplicative of a previous claim filed by CTL in Guyana that was dismissed. There has been no action on these matters since the April 2013 filing. | |||||
On May 8, 2009, Digicel filed a lawsuit in Guyana challenging the legality of GT&T's exclusive license rights under Guyana's constitution. Digicel initially filed this lawsuit against the Attorney General of Guyana in the High Court. On May 13, 2009, GT&T petitioned to intervene in the suit in order to oppose Digicel's claims and that petition was granted on May 18, 2009. GT&T filed an answer to the charge on June 22, 2009 and the case is pending. The Company believes that any legal challenge to GT&T's exclusive license rights granted in 1990 is without merit and the Company intends to vigorously defend against such a legal challenge. | |||||
On February 17, 2010, GT&T filed a lawsuit in the High Court of Guyana asserting that, despite its denials, Digicel is engaged in international bypass in violation of GT&T's exclusive license rights, the interconnection agreement between the parties, and the laws of Guyana. GT&T is seeking, among other things, injunctive relief to stop the illegal bypass activity, actual damages in excess of US$9 million and punitive damages of approximately US$5 million. Digicel filed counterclaims alleging that GT&T has violated the terms of the interconnection agreement and Guyana laws. GT&T intends to vigorously prosecute this suit. | |||||
On July 20, 2012 a trial court in Guyana made findings calling into question the validity of GT&T's exclusive license to provide international voice and data service in Guyana and the applicability of that license to telecommunications services using Voice over Internet Protocol ("VoIP"). The findings were made in a breach of contract case brought originally in 2007 against GT&T by a subscriber to its Internet service and are now temporarily stayed pending further court proceedings. Digicel, our main competitor in Guyana, in response to the trial court's findings, began connecting its own international traffic out of Guyana without receiving an international license and at rates which had not been approved by the Guyana Public Utilities Commission. In response, the Guyana Public Utilities Commission ordered Digicel to cease providing service at these rates and the government of Guyana notified us that they have undertaken to advise Digicel that its activities are in contravention of Guyana law. The Guyana courts also granted GT&T an interim injunction restraining Digicel from bypassing GT&T's network. GT&T has also appealed the case, not only with respect to the contract claim, but also as to the court's findings regarding the exclusivity of GT&T's license and its application to VoIP services. | |||||
GT&T is also involved in several legal claims regarding its tax filings with the Guyana Revenue Authority dating back to 1991 regarding the deductibility of intercompany advisory fees as well as other tax assessments. Should GT&T be held liable for any of the disputed tax assessments, totaling $33.2 million, the Company believes that the Government of Guyana would then be obligated to reimburse GT&T for any amounts necessary to ensure that GT&T's return on investment was no less than 15% per annum for the relevant periods. | |||||
In Bermuda, the Regulatory Authority continued its implementation of the Electronic Communications Act of 2011, which allows communications service providers to enter new lines of business and introduces competition in the sector. As the government of Bermuda reforms the local telecommunications market, it has adopted new and amended regulations that establish regulatory and other fees, additional regulation and result in other circumstances that could increase the regulatory costs incurred by or otherwise impact the Company's Bermuda operations. For instance, in December 2014, the Bermuda Regulatory Authority adopted a decision that, if implemented, would prevent the Company from using a portion of existing spectrum held in Bermuda reserved for the launch of next generation services in accordance with the Company's plans and demands of its customers in Bermuda. While the Company has appealed the decision, it if is implemented, it could damage the competitive position of the Compnay's Bermuda business and limit its ability to grow. | |||||
The term of the Company's telecommunications license to operate in Aruba expired on January 15, 2014. The government of Aruba informed the Company earlier in January 2014 that a renewed license would be issued only upon payment by the Company of a fee in the amount of Afl 7.2 million (or approximately US$4 million). The Company is continuing to operate as it is actively contesting the assessment of such fee. | |||||
Lease Commitments and Other Obligations | |||||
The Company leases approximately 2.3 million square feet for its operations centers, administrative offices and retail stores as well as certain tower sites under non-cancelable operating leases. The Company's obligations for payments under these leases are as follows at December 31, 2014 (in thousands): | |||||
2015 | $ | 13,810 | |||
2016 | 13,047 | ||||
2017 | 8,983 | ||||
2018 | 6,372 | ||||
2019 | 2,372 | ||||
Thereafter | 5,319 | ||||
| | | | | |
Total obligations under operating leases | $ | 49,903 | |||
| | | | | |
| | | | | |
Rent expense for the years ended December 31, 2012, 2013 and 2014 was $13.7 million, $12.7 million and $15.0 million, respectively. | |||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2014 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | |
15. RELATED-PARTY TRANSACTIONS | |
In October 2014, the Company's U.S. Virgin Islands business, Choice Communications, LLC ("Choice"), entered into a tower lease with Tropical Tower Ltd ("Tropical Tower"), an entity 90% owned by Cornelius B. Prior, Jr., the Chairman of the Company's Board of Directors. When aggregated with amounts that Choice currently pays to Tropical Tower for an existing tower lease entered into in April 2012, Choice will pay approximately $117,000 per year in rental payments to Tropical Tower. Each tower lease has an initial term of five years, with two additional five year renewal periods and has provisions for an increase in rent by 5% each year. Our Audit Committee reviewed the specific structure and terms of the October 2014 lease, as negotiated by Choice management, and unanimously approved the arrangement described above in accordance with the terms of our Related Person Transaction Policy. | |
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
SEGMENT REPORTING | |||||||||||||||||||||||
SEGMENT REPORTING | |||||||||||||||||||||||
16. SEGMENT REPORTING | |||||||||||||||||||||||
For the years ended December 31, 2012 and December 31, 2013, the Company had four reportable segments for separate disclosure in accordance with the FASB's authoritative guidance on disclosures about segments of an enterprise. Those four segments were: i) U.S. Wireless, which generates all of its revenues in and has all of its assets located in the United States, ii) International Integrated Telephony, which generates all of its revenues in and has all of its assets located in Guyana, iii) Island Wireless, which generates a majority of its revenues in, and has a majority of its assets located in, Bermuda and which also generates revenues in and has assets located in the U.S. Virgin Islands, Aruba and Turks and Caicos and iv) U.S. Wireline, which generates all of its revenues in and has all of its assets located in the United States. With the Ahana Acquisition on December 24, 2014, the Company added a fifth reportable segment, Renewable Energy, which generates all of its revenues in and has all of its assets located in the United States. Segment presentations for 2012 and 2013 were not impacted by the change in segments in 2014. The operating segments are managed separately because each offers different services and serves different markets. | |||||||||||||||||||||||
The following tables provide information for each operating segment (in thousands): | |||||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||
U.S. | International | Island | U.S. | Reconciling | Consolidated | ||||||||||||||||||
Wireless | Integrated | Wireless | Wireline | Items | |||||||||||||||||||
Telephony | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
U.S. Wireless | $ | 102,817 | $ | — | $ | — | $ | — | $ | — | $ | 102,817 | |||||||||||
International Wireless | — | 27,084 | 54,379 | — | — | 81,463 | |||||||||||||||||
Wireline | 603 | 65,313 | — | 19,608 | — | 85,524 | |||||||||||||||||
Equipment and Other | 348 | 1,738 | 5,717 | 189 | — | 7,992 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total Revenue | 103,768 | 94,135 | 60,096 | 19,797 | — | 277,796 | |||||||||||||||||
Depreciation and amortization | 16,072 | 17,963 | 11,067 | 2,860 | 2,625 | 50,587 | |||||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 3,323 | 3,323 | |||||||||||||||||
Operating income (loss) | 60,290 | 23,203 | (3,334 | ) | (2,481 | ) | (21,040 | ) | 56,638 | ||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||
U.S. | International | Island | U.S. | Reconciling | Consolidated | ||||||||||||||||||
Wireless | Integrated | Wireless | Wireline | Items | |||||||||||||||||||
Telephony | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
U.S. Wireless | $ | 107,930 | $ | — | $ | — | $ | — | $ | — | $ | 107,930 | |||||||||||
International Wireless | — | 30,334 | 61,098 | — | — | 91,432 | |||||||||||||||||
Wireline | 610 | 61,475 | — | 22,500 | — | 84,585 | |||||||||||||||||
Equipment and Other | 465 | 1,637 | 6,555 | 231 | — | 8,888 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total Revenue | 109,005 | 93,446 | 67,653 | 22,731 | — | 292,835 | |||||||||||||||||
Depreciation and amortization | 14,308 | 17,975 | 10,305 | 3,182 | 2,967 | 48,737 | |||||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 3,805 | 3,805 | |||||||||||||||||
Operating income (loss) | 54,867 | 28,212 | 8,610 | (1,076 | ) | (25,978 | ) | 64,085 | |||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||
U.S. | International | Island | U.S. | Renewable | Reconciling | Consolidated | |||||||||||||||||
Wireless | Integrated | Wireless | Wireline | Energy | Items | ||||||||||||||||||
Telephony | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
U.S. Wireless | $ | 153,040 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 153,040 | |||||||||
International Wireless | — | 26,819 | 61,831 | — | — | — | 88,650 | ||||||||||||||||
Wireline | 609 | 59,129 | — | 25,546 | — | — | 85,284 | ||||||||||||||||
Equipment and Other | 943 | 984 | 6,744 | 253 | 449 | — | 9,373 | ||||||||||||||||
Total Revenue | 154,592 | 86,932 | 68,575 | 25,799 | 449 | — | 336,347 | ||||||||||||||||
Depreciation and amortization | 14,345 | 17,408 | 10,671 | 4,725 | 105 | 3,980 | 51,234 | ||||||||||||||||
Non-cash stock-based compensation | — | — | — | — | — | 4,323 | 4,323 | ||||||||||||||||
Operating income (loss) | 89,187 | 19,628 | 9,046 | (3,668 | ) | (2,218 | ) | (26,399 | ) | 85,576 | |||||||||||||
U.S. | International | Island | U.S. | Renewable | Reconciling | Consolidated | |||||||||||||||||
Wireless | Integrated | Wireless | Wireline | Energy | Items | ||||||||||||||||||
Telephony | |||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||
Net fixed assets | $ | 73,592 | $ | 118,917 | $ | 29,310 | $ | 26,082 | $ | — | $ | 6,731 | $ | 254,632 | |||||||||
Goodwill | 32,148 | — | 5,438 | 7,491 | — | — | 45,077 | ||||||||||||||||
Total assets | 146,346 | 197,903 | 74,427 | 45,351 | — | 395,692 | -1 | 859,719 | |||||||||||||||
December 31, 2014: | |||||||||||||||||||||||
Net fixed assets | $ | 79,910 | $ | 108,972 | $ | 26,590 | $ | 28,113 | $ | 111,342 | $ | 14,655 | $ | 369,582 | |||||||||
Goodwill | 32,148 | — | 5,438 | 7,491 | — | — | 45,077 | ||||||||||||||||
Total assets | 188,377 | 201,335 | 74,563 | 42,446 | 130,124 | 288,162 | -1 | 925,030 | |||||||||||||||
-1 | Includes $4,748 and $175 of assets associated with our discontinued operations as of December 31, 2013 and 2014 respectively. | ||||||||||||||||||||||
Capital Expenditures | |||||||||||||||||||||||
Year Ended December 31, | U.S. | International | Island | U.S. | Renewable | Reconciling | Consolidated | ||||||||||||||||
Wireless | Integrated | Wireless | Wireline | Energy | Items | ||||||||||||||||||
Telephony | |||||||||||||||||||||||
2012 | 9,792 | 14,369 | 4,529 | 10,508 | — | 2,956 | 42,154 | ||||||||||||||||
2013 | 34,895 | 12,452 | 5,536 | 12,552 | — | 3,881 | 69,316 | ||||||||||||||||
2014 | 33,446 | 10,646 | 6,064 | 4,680 | — | 3,464 | 58,300 | ||||||||||||||||
Reconciling items refer to corporate overhead matters and consolidating adjustments. | |||||||||||||||||||||||
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||
17. QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||
Following is a summary of the Company's quarterly results of operations for the years ended December 31, 2013 and 2014 (in thousands): | ||||||||||||||
2013 Consolidated for the Three Months Ended | ||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||
Total revenue | $ | 64,832 | $ | 71,625 | $ | 79,350 | 77,028 | |||||||
Operating expenses | 52,754 | 55,719 | 59,312 | 60,965 | ||||||||||
| | | | | | | | | | | | | | |
Income from operations | 12,078 | 15,906 | 20,038 | 16,063 | ||||||||||
Other income (expense), net | (2,249 | ) | (2,707 | ) | (13,042 | ) | 386 | |||||||
| | | | | | | | | | | | | | |
Income from continuing operations before income taxes | 9,829 | 13,199 | 6,996 | 16,449 | ||||||||||
Income taxes | 3,945 | 4,868 | 2,481 | (1,758 | ) | |||||||||
| | | | | | | | | | | | | | |
Income from continuing operations | 5,884 | 8,331 | 4,515 | 18,207 | ||||||||||
Income from discontinued operations: | ||||||||||||||
Income (loss) from discontinued operations, net of tax | 4,034 | 3,092 | (1,960 | ) | — | |||||||||
Gain on sale of discontinued operations, net of tax | — | — | 305,197 | 1,905 | ||||||||||
Income from discontinued operations, net of tax | 4,034 | 3,092 | 303,237 | 1,905 | ||||||||||
| | | | | | | | | | | | | | |
Net income | 9,918 | 11,423 | 307,752 | 20,112 | ||||||||||
Net income attributable to non-controlling interests, net of tax: | ||||||||||||||
Continuing operations | (1,055 | ) | (1,934 | ) | (2,945 | ) | (2,055 | ) | ||||||
Discontinued operations | (87 | ) | (630 | ) | 116 | — | ||||||||
Disposal of discontinued operations | — | — | (28,699 | ) | (200 | ) | ||||||||
| | | | | | | | | | | | | | |
(1,142 | ) | (2,564 | ) | (31,528 | ) | (2,255 | ) | |||||||
Net income attributable to Atlantic Tele-Network, Inc. stockholders | 8,776 | 8,859 | 276,224 | 17,857 | ||||||||||
Net income per weighted average basic share attributable to Atlantic Tele-Network, Inc. stockholders | ||||||||||||||
Continuing operations | 0.31 | 0.41 | 0.1 | 1.02 | ||||||||||
Discontinued operations: | ||||||||||||||
Discontinued operations | 0.25 | 0.16 | (0.12 | ) | — | |||||||||
Gain on sale of discontinued operations | — | — | 17.57 | 0.15 | ||||||||||
| | | | | | | | | | | | | | |
Total discontinued operations | 0.25 | 0.16 | 17.45 | 0.15 | ||||||||||
| | | | | | | | | | | | | | |
Total | 0.56 | 0.57 | 17.55 | 1.17 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Net income per weighted average diluted share attributable to Atlantic Tele-Network, Inc. stockholders | ||||||||||||||
Continuing operations | 0.31 | 0.4 | 0.1 | 1.02 | ||||||||||
Discontinued operations: | ||||||||||||||
Discontinued operations | 0.25 | 0.16 | (0.12 | ) | — | |||||||||
Gain on Sale of discontinued operations | — | — | 17.45 | 0.14 | ||||||||||
| | | | | | | | | | | | | | |
Total discontinued operations | 0.25 | 0.16 | 17.33 | 0.14 | ||||||||||
| | | | | | | | | | | | | | |
Total | 0.56 | 0.56 | 17.43 | 1.16 | ||||||||||
| | | | | | | | | | | | | | |
2014 Consolidated for the Three Months Ended | ||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||
Total revenue | $ | 75,174 | $ | 83,269 | $ | 89,393 | 88,511 | |||||||
Operating expenses | 58,926 | 61,662 | 61,235 | 68,948 | ||||||||||
| | | | | | | | | | | | | | |
Income from operations | 16,248 | 21,607 | 28,158 | 19,563 | ||||||||||
Other income (expense), net | (295 | ) | 53 | 325 | 509 | |||||||||
| | | | | | | | | | | | | | |
Income from continuing operations before income taxes | 15,953 | 21,660 | 28,483 | 20,072 | ||||||||||
Income taxes | 5,552 | 7,338 | 9,569 | 5,689 | ||||||||||
| | | | | | | | | | | | | | |
Income from continuing operations | 10,401 | 14,322 | 18,914 | 14,383 | ||||||||||
Income from discontinued operations: | ||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | ||||||||||
Gain on sale of discontinued operations, net of tax | — | — | — | 1,102 | ||||||||||
| | | | | | | | | | | | | | |
Income from discontinued operations, net of tax | — | — | — | 1,102 | ||||||||||
| | | | | | | | | | | | | | |
Net income | 10,401 | 14,322 | 18,914 | 15,485 | ||||||||||
Net income attributable to non-controlling interests, net of tax: | ||||||||||||||
Continuing operations | (2,560 | ) | (2,809 | ) | (2,747 | ) | (2,854 | ) | ||||||
Discontinued operations | — | — | — | — | ||||||||||
Disposal of discontinued operations | — | — | — | — | ||||||||||
| | | | | | | | | | | | | | |
(2,560 | ) | (2,809 | ) | (2,747 | ) | (2,854 | ) | |||||||
Net income attributable to Atlantic Tele-Network, Inc. stockholders | 7,841 | 11,513 | 16,167 | 12,631 | ||||||||||
Net income per weighted average basic share attributable to Atlantic Tele-Network, Inc. stockholders | ||||||||||||||
Continuing operations | 0.5 | 0.72 | 1.02 | 0.72 | ||||||||||
Discontinued operations: | ||||||||||||||
Discontinued operations | — | — | — | — | ||||||||||
Gain on sale of discontinued operations | — | — | — | 0.07 | ||||||||||
| | | | | | | | | | | | | | |
Total discontinued operations | — | — | — | 0.07 | ||||||||||
| | | | | | | | | | | | | | |
Total | 0.5 | 0.72 | 1.02 | 0.79 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Net income per weighted average diluted share attributable to Atlantic Tele-Network, Inc. stockholders | ||||||||||||||
Continuing operations | 0.49 | 0.72 | 1.01 | 0.72 | ||||||||||
Discontinued operations: | ||||||||||||||
Discontinued operations | — | — | — | — | ||||||||||
Gain on Sale of discontinued operations | — | — | — | 0.07 | ||||||||||
| | | | | | | | | | | | | | |
Total discontinued operations | — | — | — | 0.07 | ||||||||||
| | | | | | | | | | | | | | |
Total | 0.49 | 0.72 | 1.01 | 0.79 | ||||||||||
| | | | | | | | | | | | | | |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENT | |
18. SUBSEQUENT EVENTS | |
On February 12, 2015, the Company signed an agreement to sell substantially all of the assets of its retail wireless business in the Turks and Caicos islands to Cable & Wireless (TCI) Limited. The transaction is subject to customary closing terms and conditions. The companies expect to complete the transaction in the first quarter of 2015 and the Company anticipates recording a loss on the sale of approximately $19 million at that time. | |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II | |||||||||||||
ATLANTIC TELE-NETWORK, INC. AND SUBSIDIARIES | ||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||
(Amounts in Thousands) | ||||||||||||||
Balance at | Charged to | Deductions | Balance | |||||||||||
Beginning | Costs and | at End | ||||||||||||
of Year | Expenses | of Year | ||||||||||||
YEAR ENDED, December 31, 2012 | ||||||||||||||
Description: | ||||||||||||||
Valuation allowance on foreign tax credit carryforwards | $ | 16,755 | $ | — | $ | 1,359 | $ | 15,396 | ||||||
Valuation allowance on foreign net operating losses | 560 | 338 | — | 898 | ||||||||||
Valuation allowance on state net operating losses | — | 494 | — | 494 | ||||||||||
Allowance for doubtful accounts | 7,060 | 1,490 | 646 | 7,904 | ||||||||||
| | | | | | | | | | | | | | |
$ | 24,375 | $ | 2,322 | $ | 2,005 | $ | 24,692 | |||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
YEAR ENDED, December 31, 2013 | ||||||||||||||
Description: | ||||||||||||||
Valuation allowance on foreign tax credit carryforwards | $ | 15,396 | $ | — | $ | 1,820 | $ | 13,576 | ||||||
Valuation allowance on foreign net operating losses | 898 | 712 | — | 1,610 | ||||||||||
Valuation allowance on state net operating losses | 494 | 632 | — | 1,126 | ||||||||||
Allowance for doubtful accounts | 7,904 | 1,462 | 361 | 9,005 | ||||||||||
| | | | | | | | | | | | | | |
$ | 24,692 | $ | 2,806 | $ | 2,181 | $ | 25,317 | |||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
YEAR ENDED, December 31, 2014 | ||||||||||||||
Description: | ||||||||||||||
Valuation allowance on foreign tax credit carryforwards | $ | 13,576 | $ | — | $ | 2,999 | $ | 10,577 | ||||||
Valuation allowance on foreign net operating losses | 1,610 | — | 110 | 1,500 | ||||||||||
Valuation allowance on state net operating losses | 1,126 | 561 | — | 1,687 | ||||||||||
Allowance for doubtful accounts | 9,005 | 2,417 | 80 | 11,342 | ||||||||||
| | | | | | | | | | | | | | |
$ | 25,317 | $ | 2,978 | $ | 3,189 | $ | 25,106 | |||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
Basis of Presentation | ||||||||||||||
Basis of Presentation | ||||||||||||||
The consolidated financial statements include the accounts of the Company, its majority-owned subsidiaries and certain entities, which are consolidated in accordance with the provisions of the Financial Accounting Standards Board ("FASB") authoritative guidance on the consolidation of variable interest entities since it is determined that the Company is the primary beneficiary of these entities. | ||||||||||||||
During the year ended December 31, 2014, the Company recognized approximately $0.7 million in general and administrative expenses to correct for an understatement of transactional tax liabilities generated during 2013 and $1.1 million in other income to correct for an understatement of foreign exchange gains generated during 2013. The Company determined that the impact of these errors was not material, individually or in the aggregate, to the current or any prior period financial statements. | ||||||||||||||
On September 20, 2013, the Federal Communications Commission announced its approval of the previously announced proposed sale of the Company's U.S. retail wireless business operated under the Alltel name to AT&T for approximately $780.0 million in cash plus $16.8 million in working capital. The Company previously reported the operations of this business within its U.S. Wireless segment. As a result of that approval, the Company completed the sale of certain U.S. retail wireless assets on that date and recorded a gain of approximately $307.1 million during the year ended December 31, 2013 and $1.1 million during the year ended December 31, 2014. | ||||||||||||||
The operations of the Alltel business, which were previously included in the Company's U.S. Wireless segment, have been classified as discontinued operations in all periods presented. The gain on the sale of the Alltel business is also included in discontinued operations. See Note 4 for additional information. Unless indicated otherwise, the information in the Notes to the Consolidated Financial Statements relates only to our continuing operations. | ||||||||||||||
Use of Estimates | ||||||||||||||
Use of Estimates | ||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates relate to the allowance for doubtful accounts, useful lives of the Company's fixed and finite-lived intangible assets, allocation of purchase price to assets acquired and liabilities assumed in purchase business combinations, fair value of indefinite-lived intangible assets, goodwill, the gain on sale of discontinued operations and income taxes. Actual results could differ significantly from those estimates. | ||||||||||||||
Cash and Cash Equivalents | ||||||||||||||
Cash and Cash Equivalents | ||||||||||||||
The Company considers all investments with an original maturity of three months or less at date of purchase to be cash equivalents. The Company places its cash and temporary investments with banks and other institutions that it believes have a high credit quality. At December 31, 2014, the Company had deposits with banks in excess of FDIC insured limits and $88.2 million of its cash is on deposit with non-insured institutions such as corporate money market issuers and cash held in foreign banks. The Company's cash and cash equivalents are not subject to any restrictions (see Note 8). As of December 31, 2013 and 2014, the Company held $36.9 million and $57.0 million, respectively, of its cash in Guyanese dollars. While there are risks associated with the conversion of Guyana dollars to U.S. dollars due to limited liquidity in the Guyana foreign currency markets, to date it has not prevented the Company from converting Guyana dollars into U.S. dollars within a given three month period or from converting at a price that reasonably approximates the reported exchange rate. | ||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||
The Company maintains an allowance for doubtful accounts for the estimated probable losses on uncollectible accounts receivable. The allowance is based upon a number of factors including the credit worthiness of customers, the Company's historical experience with customers, the age of the receivable and current market and economic conditions. Such factors are reviewed and updated by the Company on a quarterly basis. Uncollectible amounts are charged against the allowance account. | ||||||||||||||
Materials and Supplies | ||||||||||||||
Materials and Supplies | ||||||||||||||
Materials and supplies primarily include handsets, customer premise equipment, cables and poles and are recorded at the lower of cost or market cost being determined on the basis of specific identification and market determined using replacement cost. | ||||||||||||||
Fixed Assets | ||||||||||||||
Fixed Assets | ||||||||||||||
The Company's fixed assets are recorded at cost and depreciated using the straight-line method generally between 3 and 39 years. Expenditures for major renewals and betterments that extend the useful lives of fixed assets are capitalized. Repairs and replacements of minor items of property are charged to maintenance expense as incurred. The cost of fixed assets in service and under construction includes an allocation of indirect costs applicable to construction. Grants received for the construction of assets are recognized as a reduction of the cost of fixed assets, a reduction of depreciation expense over the useful lives of the assets and as a reduction of capital expenditures in the statements of cash flows. | ||||||||||||||
The fair value of a liability for an asset retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made. In periods subsequent to initial measurement, period-to-period changes in the liability for an asset retirement obligation resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flows are recognized. The increase in the carrying value of the associated long-lived asset is depreciated over the corresponding estimated economic life. The consolidated balance sheets include accruals of $2.2 million and $2.7 million as of December 31, 2013 and 2014, respectively, for estimated costs associated with asset retirement obligations. | ||||||||||||||
In accordance with the authoritative guidance for the accounting for the impairment or disposal of long-lived assets, the Company evaluates the carrying value of long-lived assets, including property and equipment, in relation to the operating performance and future undiscounted cash flows of the underlying business whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss exists when estimated undiscounted cash flows attributable to an asset are less than its carrying amount. If an asset is deemed to be impaired, the amount of the impairment loss recognized represents the excess of the asset's carrying value as compared to its estimated fair value, based on management's assumptions and projections. | ||||||||||||||
Management's estimate of the future cash flows attributable to its long-lived assets and the fair value of its businesses involve significant uncertainty. Those estimates are based on management's assumptions of future results, growth trends and industry conditions. If those estimates are not met, the Company could have additional impairment charges in the future, and the amounts may be material. | ||||||||||||||
The Company determined that there was no impairment of its fixed assets in any of the three years ending December 31, 2014. | ||||||||||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||
Goodwill is the amount by which the cost of acquired net assets exceeded the fair value of those net assets on the date of acquisition. The Company allocates goodwill to reporting units at the time of acquisition and bases that allocation on which reporting units will benefit from the acquired assets and liabilities. Reporting units are defined as operating segments or one level below an operating segment, referred to as a component. The Company has determined that its reporting units are components of its multiple operating segments. The Company assesses goodwill for impairment on an annual basis in the fourth quarter or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. If the book value of a reporting unit exceeds its fair value, the implied fair value of goodwill is compared with the carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recorded equal to that excess. | ||||||||||||||
A significant majority of the Company's telecommunications licenses are not amortized and are carried at their historical costs. The Company believes that telecommunications licenses generally have an indefinite life based on the historical ability to renew such licenses, that such renewals may be obtained indefinitely and at little cost, and that the related technology used is not expected to be replaced in the foreseeable future. The Company has elected to perform its annual testing of its telecommunications licenses in the fourth quarter of each fiscal year, or more often if events or circumstances indicate that there may be impairment. If the value of these assets were impaired by some factor, such as an adverse change in the subsidiary's operating market, the Company may be required to record an impairment charge. The impairment test consists of a comparison of the fair value of telecommunications licenses with their carrying amount on a license by license basis and as a part of the test the Company assesses the appropriateness of the application of the indefinite-lived assertion. | ||||||||||||||
As of December 31, 2013 and 2014, the Company performed its annual impairment assessment of its goodwill and indefinite-lived intangible assets (telecommunications licenses) and determined that no impairment charge was required. See Note 7 for further details. | ||||||||||||||
Intangible Assets | ||||||||||||||
Intangible Assets | ||||||||||||||
Intangible assets resulting from the acquisitions of entities accounted for using the purchase method of accounting are estimated by management based on the fair value of assets acquired. These include acquired customer relationships and trade names. Customer relationships are amortized over their estimated lives of 12 years, which are based on the pattern in which economic benefit of the customer relationship is estimated to be realized. | ||||||||||||||
Interest Rate Derivatives | ||||||||||||||
Interest Rate Derivatives | ||||||||||||||
As required by the authoritative guidance on accounting for derivative instruments and hedging activities, the Company recorded all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. | ||||||||||||||
Risk Management Objective of Using Derivatives | ||||||||||||||
Risk Management Objective of Using Derivatives | ||||||||||||||
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company managed economic risks related to interest rates primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company entered into derivative financial instruments to manage exposures that arose from business activities that resulted in the payment of future known and uncertain cash amounts, the value of which were determined by interest rates. The Company's derivative financial instruments were used to manage differences in the amount, timing, and duration of its known or expected cash payments principally related to the Company's borrowings. As a result of the repayment of its variable rate debt on September 20, 2013, the Company terminated its derivative financial instruments during 2013. See Note 9 for further details. | ||||||||||||||
Debt | ||||||||||||||
Debt | ||||||||||||||
Debt is measured at amortized cost. Debt discounts, representing the difference between the proceeds and the principal amount of debt, are amortized as interest expense in the consolidated income statements over the period of the debt on a straight-line basis, which approximates the effective interest method. Debt issuance costs are capitalized as part of other assets in the consolidated balance sheets and are amortized as interest expense in the consolidated income statements over the period of the debt on a straight-line basis, which approximates the effective interest method. Except for interest costs incurred for the construction of a qualifying asset which are capitalized during the period the assets are prepared for their intended use, interest costs are expensed. | ||||||||||||||
Non-Controlling Interests | ||||||||||||||
Non-Controlling Interests | ||||||||||||||
The non-controlling interests in the accompanying consolidated balance sheets reflect the original investments by the minority stockholders in GT&T, Commnet's consolidated subsidiaries, Bermuda Digital Communications, Islandcom, Sovernet and its consolidated subsidiaries and Ahana Renewables, along with their proportional share of the earnings or losses, net of any distributions. | ||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | ||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | ||||||||||||||
Changes in accumulated other comprehensive income (loss), by component, were as follows (in thousands): | ||||||||||||||
Interest | Projected | Translation | Total | |||||||||||
Rate Derivative | Pension | Adjustment | ||||||||||||
Agreements | Benefit | |||||||||||||
Obligation | ||||||||||||||
Balance at December 31, 2012 | $ | (6,985 | ) | $ | (1,318 | ) | $ | 6 | $ | (8,297 | ) | |||
Adjust funded status of pension plan, net of tax of $0.2 million | — | (631 | ) | — | (631 | ) | ||||||||
Foreign currency translation adjustment | — | — | (259 | ) | (259 | ) | ||||||||
Other comprehensive income before reclassifications, net of taxes of $2.3 million | 3,753 | — | — | 3,753 | ||||||||||
Amounts reclassified from accumulated other comprehensive income, net of taxes of $2.0 million | 3,232 | — | — | 3,232 | ||||||||||
| | | | | | | | | | | | | | |
Balance at December 31, 2013 | — | (1,949 | ) | (253 | ) | (2,202 | ) | |||||||
Adjust funded status of pension plan, net of tax of $0.6 million | — | (723 | ) | — | (723 | ) | ||||||||
Foreign currency translation adjustment | — | — | 4 | 4 | ||||||||||
| | | | | | | | | | | | | | |
Balance at December 31, 2014 | $ | — | $ | (2,672 | ) | $ | (249 | ) | $ | (2,921 | ) | |||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Revenue Recognition | ||||||||||||||
Revenue Recognition—Telecommunications | ||||||||||||||
Service revenues are primarily derived from providing access to and usage of the Company's networks and facilities. Access revenues from postpaid customers are generally billed one month in advance and are recognized over the period that the corresponding service is rendered to customers. Revenues derived from usage of the Company's networks, including airtime, roaming, long-distance and Universal Service Fund revenues, are recognized when the services are provided and are included in unbilled revenues until billed to the customer. Prepaid airtime sold to customers is recorded as deferred revenue prior to the commencement of services and is recognized when the airtime is used or expires. The Company offers enhanced services including caller identification, call waiting, call forwarding, three-way calling, voice mail, and text and picture messaging, as well as downloadable wireless data applications, including ringtones, music, games, and other informational content. Generally, these enhanced features generate additional service revenues through monthly subscription fees or increased usage through utilization of the features. Other optional services such as roadside assistance and other equipment protection plans may also be provided for a monthly fee and are either sold separately or bundled and included in packaged rate plans. Revenues from enhanced features and optional services are recognized when earned. Access and usage-based services are billed throughout the month based on the bill cycle assigned to a particular customer. As a result of billing cycle cut-off times, management must estimate service revenues earned but not yet billed at the end of each reporting period. | ||||||||||||||
Sales of communications products including wireless handsets and accessories represent a separate earnings process and are recognized when the products are delivered to and accepted by customers. The Company accounts for transactions involving both the activation of service and the sale of equipment in accordance with the authoritative guidance for the accounting for revenue arrangements with multiple deliverables. Fees assessed to communications customers to activate service are not a separate unit of accounting and are allocated to the delivered item (equipment) and recognized as product sales to the extent that the aggregate proceeds received from the customer for the equipment and activation fee do not exceed the relative fair value of the equipment. | ||||||||||||||
Wholesale revenues are those revenues generated from providing voice or data services to the customers of other wireless carriers principally through "roaming" agreements, and the revenue is recognized over the period that the service is rendered to customers. | ||||||||||||||
Sales and use and state excise taxes collected from customers that are remitted to the governmental authorities are reported on a net basis and excluded from the revenues and sales. | ||||||||||||||
Revenue Recognition—Renewable Energy | ||||||||||||||
Revenue from the Company's Renewable Energy segment is generated from the sale of electricity through long-term power purchase agreements ("PPA's") with various customers, or hosts, that range from 10 to 25 years. The Company, which is required to sell all generated power to the hosts, recognizes revenue from the PPA's as electricity is generated and sold at contractual rates as defined within the respective PPA. | ||||||||||||||
The Company's Renewable Energy segment also generates revenue from the sale of Solar Renewable Energy Credits ("SRECs"). Revenue is recognized as SRECs are sold through long-term purchase agreeements at the contractual rate specified in the agreement. | ||||||||||||||
Accounting for Grants | ||||||||||||||
Accounting for Grants | ||||||||||||||
The Company has received funding from the U.S. Government and its agencies under Stimulus and Universal Service Fund programs. These funding programs are generally designed to fund telecommunications infrastructure expansion into rural or underserved areas of the United States. The funding programs are evaluated to determine if they represent funding related to capital expenditures (capital grants) or operating activities (income grants). | ||||||||||||||
Funding received from Stimulus programs is on a cost-reimbursement basis for capital expenditures incurred by the Company to expand its network and is considered a capital grant. Accordingly, reimbursements for eligible expenditures under the Stimulus programs are recorded as a reduction to property, plant and equipment on the Company's consolidated balance sheets, an investing cash inflow and a future reduction in depreciation expense in the consolidated income statements. The depreciable period for the grant is commensurate with the related assets which typically range from 5 to 20 years. As of December 31, 2014, the Company has spent $92.5 million in capital expenditures of which $67.0 million has been or will be funded by the Stimulus programs. Accordingly, funding received for capital expenditures from the Stimulus Programs is recorded as a reduction to property, plant and equipment on the Company's consolidated balance sheets, an investing cash inflow within capital expenditures and a future reduction in depreciation expense in the consolidated income statements. Funding received for operating costs is recorded as a reduction to the Company's operating expenses in its consolidated statements of income and an operating cash inflow. | ||||||||||||||
Funding received from Universal Service Fund programs is received over time for operating the Company's network in certain rural geographical areas and is considered an income grant. Accordingly, such funding is recognized as operating cash inflows. Once services are provided, revenue is recognized in the Company's consolidated income statements. During the year ended December 31, 2013 and December 31, 2014 the Company received approximately $2.4 million and $3.9 million, respectively, from the Universal Service Fund programs. Of these amounts, $1.6 million and $1.3 million for the years ended December 31, 2013 and December 31, 2014, respectively, were to support our U.S. Wireless business relating to high cost areas. | ||||||||||||||
Funding received from the Mobility Fund, as further described in Note 10, is for the use of both capital expenditures and operating costs incurred by the Company. Accordingly, funding received for capital expenditures from the Mobility Fund is recorded as a reduction to property, plant and equipment on the Company's consolidated balance sheets, an investing cash inflow within capital expenditures and a future reduction in depreciation expense in the consolidated income statements. Funding received for operating costs is recorded as a reduction to the Company's operating expenses in its consolidated income statements and an operating cash inflow. | ||||||||||||||
Compliance with grant requirements is reviewed as of December 31 of each year to ensure that conditions related to grants have been met and there is reasonable assurance that the Company will be able to retain the grant proceeds and to ensure that any contingencies that may arise from not meeting the conditions are appropriately recognized. | ||||||||||||||
Income Taxes | ||||||||||||||
Income Taxes | ||||||||||||||
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||||||||||||||
The Company recognizes deferred tax assets to the extent that the Company believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize our deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. | ||||||||||||||
The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related authority. It is possible that the ultimate resolution of these uncertain matters may be greater or less than the amount that the Company estimated. If payment of these amounts proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period in which it is determined that the liabilities are no longer necessary. If the estimate of tax liabilities proves to be more than the ultimate assessment, a further charge to expense would result. | ||||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. | ||||||||||||||
The Company does not provide for United States income taxes on earnings of foreign subsidiaries as such earnings are considered to be indefinitely reinvested. | ||||||||||||||
In September 2013, the U.S. Department of the Treasury and the Internal Revenue Service released final regulations relating to guidance on applying tax rules to amounts paid to acquire, produce or improve tangible personal property as well as rules for materials and supplies effective for tax years beginning on or after January 1, 2014. The Company has reviewed the regulations and has determined that its current method of accounting is appropriate under the regulations with no change required. | ||||||||||||||
Credit Concentrations and Significant Customers | ||||||||||||||
Credit Concentrations and Significant Customers | ||||||||||||||
The Company has been historically dependent on a limited amount of customers for its wholesale roaming business. The following table indicates the percentage of revenues generated from a single customer that exceeds 10% of the Company's consolidated revenue in any of the past three years: | ||||||||||||||
Customer | 2012 | 2013 | 2014 | |||||||||||
Verizon | 11 | % | 13 | % | 16 | % | ||||||||
AT&T | 20 | % | 18 | % | 26 | % | ||||||||
No other customer accounted for more than 10% of consolidated revenue in any of the past three years. | ||||||||||||||
The following table indicates the percentage of accounts receivable, from customers that exceed 10% of the Company's consolidated accounts receivable, net of allowances, as of December 31, 2013 and 2014: | ||||||||||||||
Customer | 2013 | 2014 | ||||||||||||
AT&T | 29 | % | 47 | % | ||||||||||
Verizon | 10 | % | 7 | % | ||||||||||
Foreign Currency Gains and Losses | ||||||||||||||
Foreign Currency Gains and Losses | ||||||||||||||
With regard to the Company's Guyana operations, for which the Guyanese dollar is the functional currency, foreign currency transaction gains and losses are included in determining net income. At each balance sheet date, balances denominated in foreign currencies are adjusted to reflect the current exchange rate. For 2012, the value of the Guyana dollar remained relatively constant at approximately G$205 to one U.S. dollar and, as a result, no foreign currency gains or losses were recorded. Beginning in 2013, the value increased to approximately G$210 to one U.S. Dollar. Accordingly, the Company recognized a nominal foreign currency loss during the year ended December 31, 2013 and $1.1 million gain on foreign currency exchanges during the year ended December 31, 2014. As of December 31, 2014, the exchange rate was G$210 to one U.S. Dollar. | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
In accordance with the provisions of fair value accounting, a fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model. | ||||||||||||||
The fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: | ||||||||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset and liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 assets and liabilities include money market funds, debt and equity securities and derivative contracts that are traded in an active exchange market. | |||||||||||||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes corporate obligations and non-exchange traded derivative contracts. | |||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments and intangible assets that have been impaired whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. | |||||||||||||
Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2013 and 2014 are summarized as follows: | ||||||||||||||
December 31, 2013 | ||||||||||||||
Description | Quoted Prices in | Significant Other | Total | |||||||||||
Active Markets | Observable | |||||||||||||
(Level 1) | Inputs | |||||||||||||
(Level 2) | ||||||||||||||
Certificates of deposit | $ | — | $ | 363 | $ | 363 | ||||||||
Money market funds | $ | 2,244 | $ | — | $ | 2,244 | ||||||||
| | | | | | | | | | | ||||
Total assets measured at fair value | $ | 2,244 | $ | 363 | $ | 2,607 | ||||||||
| | | | | | | | | | | ||||
December 31, 2014 | ||||||||||||||
Description | Quoted Prices in | Significant Other | Total | |||||||||||
Active Markets | Observable | |||||||||||||
(Level 1) | Inputs | |||||||||||||
(Level 2) | ||||||||||||||
Certificates of deposit | $ | — | $ | 363 | $ | 363 | ||||||||
Money market funds | $ | 1,493 | $ | — | $ | 1,493 | ||||||||
| | | | | | | | | | | ||||
Total assets measured at fair value | $ | 1,493 | $ | 363 | $ | 1,856 | ||||||||
| | | | | | | | | | | ||||
Debt (Note 8) | $ | — | $ | 38,877 | $ | 38,877 | ||||||||
| | | | | | | | | | | ||||
Total liabilities measured at fair value | $ | — | $ | 38,877 | $ | 38,877 | ||||||||
| | | | | | | | | | | ||||
Certificate of Deposit | ||||||||||||||
As of December 31, 2013 and December 31, 2014, this asset class consisted of a time deposit at a financial institution denominated in U.S. dollars. The asset class is classified within Level 2 of the fair value hierarchy because the fair value was based on observable market data. | ||||||||||||||
Money Market Funds | ||||||||||||||
As of December 31, 2013 and December 31, 2014, this asset class consisted of a money market portfolio that comprises Federal government and U.S. Treasury securities. The asset class is classified within Level 1 of the fair value hierarchy because its underlying investments are valued using quoted market prices in active markets for identical assets | ||||||||||||||
Derivatives | ||||||||||||||
Derivatives | ||||||||||||||
The Company was exposed to certain risks arising from both its business operations and economic conditions. When deemed appropriate, the Company manages economic risks related to interest rates primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company entered into derivative financial instruments to manage exposures that arose from business activities that resulted in the payment of future known and uncertain cash amounts, the value of which were determined by interest rates. The Company's derivative financial instruments were used to manage differences in the amount, timing, and duration of its known or expected cash payments principally related to the Company's borrowings. The principal market in which the Company executes its foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large commercial banks. | ||||||||||||||
Net Income Per Share | ||||||||||||||
Net Income Per Share | ||||||||||||||
Basic net income per share is computed by dividing net income attributable to the Company's stockholders by the weighted-average number of common shares outstanding during the period and does not include any other potentially dilutive securities. Diluted net income per share gives effect to all potentially dilutive securities using the treasury stock method. | ||||||||||||||
The reconciliation from basic to diluted weighted average common shares outstanding is as follows (in thousands): | ||||||||||||||
For the Year Ended | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Basic weighted-average common shares outstanding | 15,531 | 15,704 | 15,898 | |||||||||||
Stock options | 88 | 113 | 115 | |||||||||||
| | | | | | | | | | | ||||
Diluted weighted-average common shares outstanding | 15,619 | 15,817 | 16,013 | |||||||||||
| | | | | | | | | | | ||||
The following notes the number of potential common shares not included in the above calculation because the effects of such were anti-dilutive (in thousands of shares): | ||||||||||||||
For the Year Ended | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Stock options | 367 | 61 | — | |||||||||||
| | | | | | | | | | | ||||
Total | 367 | 61 | — | |||||||||||
| | | | | | | | | | | ||||
Stock-Based Compensation | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
The Company applies the fair value recognition provisions of the authoritative guidance for the accounting for stock-based compensation and is expensing the fair value of the grants of options to purchase common stock over their vesting period of four years. The Company has not granted options since 2012. Relating to grants of options, the Company recognized $1.8 million, $1.4 million and $0.9 million of non-cash, share-based compensation expense during 2012, 2013 and 2014, respectively. See Note 11 for assumptions used to calculate the fair value of the options granted. | ||||||||||||||
The Company also issued 72,083 restricted shares of common stock in 2012; 100,902 restricted shares of common stock in 2013 and 109,318 restricted shares of common stock in 2014. These shares are being charged to income based upon their fair values over their vesting period of four years. Non-cash equity-based compensation expense, related to the vesting of restricted shares issued was $1.8 million, $3.1 million and $3.4 million in 2012, 2013 and 2014, respectively. | ||||||||||||||
Stock-based compensation expense is recognized within general and administrative expenses within the consolidated income statements. | ||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern . ASU 2014-15 will explicitly require management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. Earlier adoption is permitted. The Company does not expect ASU No. 2014-15 to have a material impact on the consolidated financial position, results of operations, or cash flows. | ||||||||||||||
In June 2014, the FASB issued a standards update on accounting for share-based payments when the terms of the award provide that a performance target could be achieved after a requisite service period. The standard is effective beginning January 1, 2016, with early adoption permitted. The Company does not expect it to have a material impact on our consolidated financial position, results of operations or cash flows. | ||||||||||||||
In May 2014, the FASB issued a standard on revenue recognition providing a single, comprehensive revenue recognition model for all contracts with customers. The revenue standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is effective for reporting periods beginning after December 15, 2016, with no early adoption permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the adoption method options and the impact of the new guidance on our consolidated financial statements. | ||||||||||||||
In April 2014, the FASB issued Accounting Standards Update ("ASU") 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 provides guidance on determining when disposals can be presented as discontinued operations. ASU 2014-08 requires that only disposals representing a strategic shift in operations should be presented as discontinued operations. A strategic shift may include a disposal of a major line of business, major equity method investment or a major part of an entity. Additionally, ASU 2014-08 requires expanded disclosures regarding discontinued operations. This standard is effective prospectively for reporting periods beginning after December 15, 2014. Early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company's consolidated financial statements. | ||||||||||||||
In March 2013, the FASB issued ASU 2013-05, "Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." ASU 2013-05 provides clarification regarding whether ASC 810-10, "Consolidation—Overall" or ASC 830-30, "Foreign Currency Matters—Translation of Financial Statements," applies to the release of cumulative translation adjustments into net income when a reporting entity either sells a part or all of its investment in a foreign entity or ceases to have a controlling financial interest in a subsidiary or group of assets that constitute a business within a foreign entity. The revised standard is effective for reporting periods beginning after December 15, 2013. The adoption of this amendment did not have a material impact on the Company's consolidated financial statements. | ||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the Emerging Issues Task Force)," which states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a company does not have: (i) a net operating loss carryforward; (ii) a similar tax loss; or (iii) a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The authoritative guidance is effective for fiscal years and the interim periods within those fiscal years beginning on or after December 15, 2013 and was applied on a prospective basis. The adoption of this authoritative guidance did not have a material impact on the Company's consolidated financial statements. | ||||||||||||||
ORGANIZATION_AND_BUSINESS_OPER1
ORGANIZATION AND BUSINESS OPERATIONS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
ORGANIZATION AND BUSINESS OPERATIONS | |||||||
Schedule of the operating activities of the Company's principal subsidiaries, the segments in which the Company reports its revenue and markets served | |||||||
Services | Segment | Markets | Tradenames | ||||
Wireless | U.S. Wireless | United States (rural markets) | Commnet, Choice | ||||
Island Wireless | Aruba, Bermuda, Turks and Caicos, U.S. Virgin Islands | Mio, CellOne, Islandcom, Choice | |||||
International Integrated Telephony | Guyana | Cellink | |||||
Wireline | International Integrated Telephony | Guyana | GT&T | ||||
U.S. Wireline | United States (New England and New York State) | Sovernet, ION, Essextel | |||||
Renewable Energy | Renewable Energy | United States (Massachusetts, California and New Jersey) | Ahana Renewables | ||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
Schedule of changes in accumulated other comprehensive income (loss), by component | ||||||||||||||
Changes in accumulated other comprehensive income (loss), by component, were as follows (in thousands): | ||||||||||||||
Interest | Projected | Translation | Total | |||||||||||
Rate Derivative | Pension | Adjustment | ||||||||||||
Agreements | Benefit | |||||||||||||
Obligation | ||||||||||||||
Balance at December 31, 2012 | $ | (6,985 | ) | $ | (1,318 | ) | $ | 6 | $ | (8,297 | ) | |||
Adjust funded status of pension plan, net of tax of $0.2 million | — | (631 | ) | — | (631 | ) | ||||||||
Foreign currency translation adjustment | — | — | (259 | ) | (259 | ) | ||||||||
Other comprehensive income before reclassifications, net of taxes of $2.3 million | 3,753 | — | — | 3,753 | ||||||||||
Amounts reclassified from accumulated other comprehensive income, net of taxes of $2.0 million | 3,232 | — | — | 3,232 | ||||||||||
| | | | | | | | | | | | | | |
Balance at December 31, 2013 | — | (1,949 | ) | (253 | ) | (2,202 | ) | |||||||
Adjust funded status of pension plan, net of tax of $0.6 million | — | (723 | ) | — | (723 | ) | ||||||||
Foreign currency translation adjustment | — | — | 4 | 4 | ||||||||||
| | | | | | | | | | | | | | |
Balance at December 31, 2014 | $ | — | $ | (2,672 | ) | $ | (249 | ) | $ | (2,921 | ) | |||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of percentage of revenues generated from a single customer that exceeds 10% of the Company's consolidated revenue | ||||||||||||||
Customer | 2012 | 2013 | 2014 | |||||||||||
Verizon | 11 | % | 13 | % | 16 | % | ||||||||
AT&T | 20 | % | 18 | % | 26 | % | ||||||||
Schedule of percentage of accounts receivable, from customers that exceed 10% of the Company's consolidated accounts receivable, net of allowances | ||||||||||||||
Customer | 2013 | 2014 | ||||||||||||
AT&T | 29 | % | 47 | % | ||||||||||
Verizon | 10 | % | 7 | % | ||||||||||
Schedule of assets and liabilities of the Company measured at fair value on a recurring basis | ||||||||||||||
December 31, 2013 | ||||||||||||||
Description | Quoted Prices in | Significant Other | Total | |||||||||||
Active Markets | Observable | |||||||||||||
(Level 1) | Inputs | |||||||||||||
(Level 2) | ||||||||||||||
Certificates of deposit | $ | — | $ | 363 | $ | 363 | ||||||||
Money market funds | $ | 2,244 | $ | — | $ | 2,244 | ||||||||
| | | | | | | | | | | ||||
Total assets measured at fair value | $ | 2,244 | $ | 363 | $ | 2,607 | ||||||||
| | | | | | | | | | | ||||
December 31, 2014 | ||||||||||||||
Description | Quoted Prices in | Significant Other | Total | |||||||||||
Active Markets | Observable | |||||||||||||
(Level 1) | Inputs | |||||||||||||
(Level 2) | ||||||||||||||
Certificates of deposit | $ | — | $ | 363 | $ | 363 | ||||||||
Money market funds | $ | 1,493 | $ | — | $ | 1,493 | ||||||||
| | | | | | | | | | | ||||
Total assets measured at fair value | $ | 1,493 | $ | 363 | $ | 1,856 | ||||||||
| | | | | | | | | | | ||||
Debt (Note 8) | $ | — | $ | 38,877 | $ | 38,877 | ||||||||
| | | | | | | | | | | ||||
Total liabilities measured at fair value | $ | — | $ | 38,877 | $ | 38,877 | ||||||||
| | | | | | | | | | | ||||
Schedule of reconciliation from basic to diluted weighted average common shares outstanding | ||||||||||||||
The reconciliation from basic to diluted weighted average common shares outstanding is as follows (in thousands): | ||||||||||||||
For the Year Ended | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Basic weighted-average common shares outstanding | 15,531 | 15,704 | 15,898 | |||||||||||
Stock options | 88 | 113 | 115 | |||||||||||
| | | | | | | | | | | ||||
Diluted weighted-average common shares outstanding | 15,619 | 15,817 | 16,013 | |||||||||||
| | | | | | | | | | | ||||
Schedule of anti-dilutive potential shares that were excluded from the computation of diluted weighted average shares outstanding | The following notes the number of potential common shares not included in the above calculation because the effects of such were anti-dilutive (in thousands of shares): | |||||||||||||
For the Year Ended | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Stock options | 367 | 61 | — | |||||||||||
| | | | | | | | | | | ||||
Total | 367 | 61 | — | |||||||||||
| | | | | | | | | | | ||||
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
ACQUISITIONS | |||||
Schedule of assessment of total acquisition costs to net assets based on acquisition date fair values | |||||
Total consideration | $ | 78,782 | |||
| | | | | |
| | | | | |
Purchase price allocation: | |||||
Cash | 6,571 | ||||
Other current assets | 2,011 | ||||
Plant and equipment | 111,446 | ||||
Restricted Cash | 5,884 | ||||
Current liabilities | (853 | ) | |||
Long-Term debt | (38,877 | ) | |||
Non-controlling interests | (7,400 | ) | |||
| | | | | |
Net assets acquired | 78,782 | ||||
| | | | | |
DISCONTINUED_OPERATIONS_SALE_O1
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS | ||||||||
Schedule of gain on sale of operations | As a result of that approval, the Company completed the sale of certain U.S. retail wireless assets on that date and recorded a gain in 2013 of approximately $307.1 million calculated as follows (in thousands): | |||||||
Proceeds: | ||||||||
Received | $ | 702,000 | ||||||
Escrowed | 78,000 | |||||||
Working capital | 16,828 | |||||||
| | | | | | | | |
Adjusted proceeds | 796,828 | |||||||
Less: Net assets sold or impaired: | ||||||||
Assets sold or impaired: | ||||||||
Current assets | 51,597 | |||||||
Property, plant and equipment, net | 190,970 | |||||||
Telecommunications licenses | 50,553 | |||||||
Other intangible assets | 37,434 | |||||||
Other assets | 13,202 | |||||||
Liabilities sold: | ||||||||
Current liabilities | (40,674 | ) | ||||||
Other liabilities | (22,796 | ) | ||||||
| | | | | | | | |
Net assets sold or impaired | 280,286 | |||||||
Less: Transaction related costs | (13,517 | |||||||
) | ||||||||
| | | | | | | | |
Pre-tax gain | 503,025 | |||||||
Less: Income taxes at effective rate | 195,923 | |||||||
| | | | | | | | |
Net gain on sale | $ | 307,102 | ||||||
| | | | | | | | |
| | | | | | | | |
Schedule of revenues and income from discontinued operations | ||||||||
Revenues and income from discontinued operations related to the Alltel business for the years ended December 31, 2012 and 2013 were as follows (in thousands): | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
Revenue from discontinued operations | $ | 464,382 | $ | 299,519 | ||||
Income from discontinued operations, net of tax expense (benefit) of $13,816 and $2,512 respectively | 29,202 | 5,166 | ||||||
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
ACCOUNTS RECEIVABLE: | ||||||||
Schedule of accounts receivable | As of December 31, 2013 and 2014, accounts receivable consist of the following (in thousands): | |||||||
2013 | 2014 | |||||||
Retail | $ | 19,833 | $ | 21,367 | ||||
Wholesale | 27,539 | 41,245 | ||||||
Other | 54 | 1,605 | ||||||
| | | | | | | | |
Accounts receivable | 47,426 | 64,217 | ||||||
Less: allowance for doubtful accounts | (9,746 | ) | (11,344 | ) | ||||
| | | | | | | | |
Total accounts receivable, net | $ | 37,680 | $ | 52,873 | ||||
| | | | | | | | |
FIXED_ASSETS_Tables
FIXED ASSETS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
FIXED ASSETS: | |||||||||||
Schedule of property, plant and equipment | As of December 31, 2013 and 2014, property, plant and equipment consisted of the following (in thousands): | ||||||||||
Useful Life | 2013 | 2014 | |||||||||
(in Years) | |||||||||||
Telecommunications equipment and towers | 5 - 15 | $ | 471,265 | $ | 514,814 | ||||||
Solar assets | 20 - 23 | — | 111,446 | ||||||||
Office and computer equipment | 3 - 10 | 46,680 | 46,757 | ||||||||
Buildings | 15 - 39 | 18,002 | 18,079 | ||||||||
Transportation vehicles | 3 - 10 | 6,984 | 7,589 | ||||||||
Leasehold improvements | Shorter of useful life or lease term | 11,380 | 11,494 | ||||||||
Land | — | 1,162 | 1,146 | ||||||||
Furniture and fixtures | 5 - 10 | 5,778 | 8,110 | ||||||||
| | | | | | | | | | | |
Total plant in service | 561,251 | 719,435 | |||||||||
Construction in progress | 45,661 | 43,982 | |||||||||
| | | | | | | | | | | |
Total property, plant, and equipment in service | 606,912 | 763,417 | |||||||||
Less: Accumulated depreciation | (352,280 | ) | (393,835 | ) | |||||||
| | | | | | | | | | | |
Net fixed assets | $ | 254,632 | 369,582 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
Schedule of changes in the carrying amount of the Company's telecommunications licenses, by operating segment | The changes in the carrying amount of the Company's telecommunications licenses, by operating segment, for the three years ended December 31, 2014 were as follows (in thousands): | |||||||||||||
U.S. | U.S. | Island | Consolidated | |||||||||||
Wireless | Wireline | Wireless | ||||||||||||
Balance at December 31, 2012 | $ | 20,106 | $ | 31 | $ | 19,768 | $ | 39,905 | ||||||
Acquired licenses | 186 | — | — | 186 | ||||||||||
Licenses sold | (404 | ) | — | — | (404 | ) | ||||||||
| | | | | | | | | | | | | | |
Balance at December 31, 2013 | 19,888 | 31 | 19,768 | 39,687 | ||||||||||
Acquired licenses | 5,025 | — | — | 5,025 | ||||||||||
Amortization | — | — | (622 | ) | (622 | ) | ||||||||
| | | | | | | | | | | | | | |
Balance at December 31, 2014 | 24,913 | 31 | 19,146 | 44,090 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of future amortization of customer relationships, in Island Wireless segment | Future amortization of customer relationships, in our Island Wireless segment, is as follows (in thousands): | |||||||||||||
Future | ||||||||||||||
Amortization | ||||||||||||||
2015 | $ | 343 | ||||||||||||
2016 | 309 | |||||||||||||
2017 | 276 | |||||||||||||
2018 | 200 | |||||||||||||
2019 | 145 | |||||||||||||
Thereafter | 223 | |||||||||||||
| | | | | ||||||||||
Total | $ | 1,496 | ||||||||||||
| | | | | ||||||||||
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||
Schedule of effect of the entity's derivative financial instruments on the consolidated income statements | The table below presents the effect of the Company's derivative financial instruments on the consolidated income statements for the year ended December 31, 2013 (in thousands): | |||||||||||
Year Ended December 31, | Derivative in Cash Flow | Amount of Gain or | Location of Gain or | Amount of Gain or | ||||||||
Hedging Relationships | (Loss) Recognized | (Loss) Reclassified | (Loss) Reclassified | |||||||||
in Other | from Accumulated | from Accumulated | ||||||||||
Comprehensive | Other | Other | ||||||||||
Income on | Comprehensive | Comprehensive | ||||||||||
Derivative | Income into Income | Income into | ||||||||||
(Effective Portion) | (Effective Portion) | Income | ||||||||||
(Effective Portion) | ||||||||||||
2013 | Interest Rate Swap | $ | 6,255 | Interest expense | $ | 764 | ||||||
EQUITY_Tables
EQUITY (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
EQUITY | ||||||||||||||
Schedule of shares repurchased from employees to satisfy tax obligations incurred in connection with the vesting of restricted stock awards and the exercise of stock options | Year Ended December 31 | Shares | Aggregate | Average | ||||||||||
Repurchased | Cost | Repurchase | ||||||||||||
(in thousands) | Price | |||||||||||||
2012 | 9,175 | $ | 344 | $ | 37.51 | |||||||||
2013 | 163,222 | 8,103 | 49.64 | |||||||||||
2014 | 34,293 | 2,161 | 63.01 | |||||||||||
Summary of stock option activity | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||
Number of | Weighted Avg. | Weighted Average | Aggregate | |||||||||||
Options | Exercise | Remaining | Intrinsic Value | |||||||||||
Price | Contractual | |||||||||||||
Term (Years) | ||||||||||||||
Outstanding at January 1, 2013 | 720,448 | $ | 34.31 | |||||||||||
Exercised | (303,536 | ) | 30.64 | |||||||||||
Forfeited—Vested | (11,625 | ) | 46.01 | |||||||||||
Forfeited—Unvested | (4,000 | ) | 45.22 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 31, 2013 | 401,287 | 36.63 | 6 | $ | 8,000,149 | |||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Vested and expected to vest at December 31, 2013 | 398,036 | 35.86 | 6 | $ | 7,934,478 | |||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at December 31, 2013 | 241,662 | 35.86 | 5.2 | $ | 5,004,299 | |||||||||
| | | | | | | | | | | | | | |
Year Ended December 31, 2014 | ||||||||||||||
Number of | Weighted Avg. | Weighted Average | Aggregate | |||||||||||
Options | Exercise | Remaining | Intrinsic Value | |||||||||||
Price | Contractual | |||||||||||||
Term (Years) | ||||||||||||||
Outstanding at January 1, 2014 | 401,287 | $ | 36.63 | |||||||||||
Exercised | (43,034 | ) | 37.68 | |||||||||||
Forfeited—Unvested | (7,000 | ) | 34.22 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at December 31, 2014 | 351,253 | 36.55 | 5 | $ | 10,901,529 | |||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Vested and expected to vest at December 31, 2014 | 351,142 | 36.56 | 5 | $ | 10,987,590 | |||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at December 31, 2014 | 290,128 | 36.81 | 4.6 | $ | 8,929,815 | |||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Summary of information relating to options granted and exercised | The following table summarizes information relating to options granted and exercised during 2012, 2013 and 2014 (in thousands, except fair value of options granted data): | |||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Weighted-average fair value of options granted | $ | 15.27 | $ | N/A | $ | N/A | ||||||||
Aggregate intrinsic value of options exercised | 938 | 6,111 | 1,098,336 | |||||||||||
Cash proceeds received upon exercise of options | 1,452 | 2,669 | 1,621 | |||||||||||
Excess tax benefits from share-based compensation | (362 | ) | 2,101 | 513 | ||||||||||
Schedule of weighted-average assumptions using Black-Scholes option-pricing model for estimating fair value of each option granted | ||||||||||||||
Options Granted in | ||||||||||||||
2012 | ||||||||||||||
Risk-free interest rate | 1.40% | |||||||||||||
Expected dividend yield | 2.50% | |||||||||||||
Expected life | 6.25 years | |||||||||||||
Expected volatility | 53% | |||||||||||||
Summary of restricted stock activity | Shares | Weighted Avg. | ||||||||||||
Fair Value | ||||||||||||||
Unvested as of January 1, 2013 | 103,853 | $ | 39.63 | |||||||||||
Granted | 100,902 | 48.54 | ||||||||||||
Forfeited | (250 | ) | 46.85 | |||||||||||
Vested and issued | (49,986 | ) | 43.96 | |||||||||||
| | | | | | | | |||||||
Unvested as of December 31, 2013 | 154,519 | $ | 44.04 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Shares | Weighted Avg. | |||||||||||||
Fair Value | ||||||||||||||
Unvested as of January 1, 2014 | 154,519 | $ | 44.04 | |||||||||||
Granted | 109,318 | 64.73 | ||||||||||||
Forfeited | (8,500 | ) | 51.44 | |||||||||||
Vested and issued | (60,194 | ) | 44.61 | |||||||||||
| | | | | | | | |||||||
Unvested as of December 31, 2014 | 195,143 | $ | 55.13 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INCOME TAXES | |||||||||||
Schedule of components of income before income taxes | The components of income before income taxes for the years ended December 31, 2012, 2013 and 2014 are as follows (in thousands): | ||||||||||
2012 | 2013 | 2014 | |||||||||
Domestic | $ | 26,249 | $ | 13,697 | $ | 57,767 | |||||
Foreign | 18,547 | 32,776 | 28,401 | ||||||||
| | | | | | | | | | | |
Total | $ | 44,796 | $ | 46,473 | $ | 86,168 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of reconciliation from the tax computed at statutory income tax rates to the Company's income tax expense | The following is a reconciliation from the tax computed at statutory income tax rates to the Company's income tax expense for the years ended December 31, 2012, 2013, and 2014 (in thousands): | ||||||||||
2012 | 2013 | 2014 | |||||||||
Tax computed at statutory U.S. federal income tax rates | $ | 15,679 | $ | 16,270 | $ | 30,160 | |||||
Income taxes in excess (below) statutory U.S. tax rates: | |||||||||||
Guyana | 812 | 701 | (130 | ) | |||||||
Bermuda and Turks & Caicos | 503 | (3,203 | ) | (4,712 | ) | ||||||
Turks & Caicos intercompany note receivable write-down | — | (8,572 | ) | — | |||||||
Valuation allowance | 832 | 711 | (887 | ) | |||||||
Foreign tax reserve | 2,359 | 2,081 | 2,095 | ||||||||
State taxes | 906 | 1,032 | 1,813 | ||||||||
Research and development credit | (1,971 | ) | — | — | |||||||
Other, net | 1,711 | 516 | (191 | ) | |||||||
| | | | | | | | | | | |
Income tax expense | $ | 20,831 | $ | 9,536 | $ | 28,148 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of components of income tax expense (benefit) | The components of income tax expense (benefit) for the years ended December 31, 2012, 2013 and 2014 are as follows (in thousands): | ||||||||||
2012 | 2013 | 2014 | |||||||||
Current: | |||||||||||
United States—Federal | $ | 4,812 | $ | 1,703 | $ | 14,761 | |||||
United States—State | 2,418 | 895 | 1,347 | ||||||||
Foreign | 11,099 | 11,787 | 12,153 | ||||||||
| | | | | | | | | | | |
Total current income tax expense | $ | 18,329 | $ | 14,385 | $ | 28,261 | |||||
| | | | | | | | | | | |
Deferred: | |||||||||||
United States—Federal | $ | 4,050 | $ | (5,273 | ) | $ | 5,205 | ||||
United States—State | (1,011 | ) | 169 | 466 | |||||||
Foreign | (537 | ) | 255 | (5,784 | ) | ||||||
| | | | | | | | | | | |
Total deferred income tax expense (benefit) | 2,502 | (4,849 | ) | (113 | ) | ||||||
| | | | | | | | | | | |
Consolidated: | |||||||||||
United States—Federal | $ | 8,862 | $ | (3,570 | ) | $ | 19,966 | ||||
United States—State | 1,407 | 1,064 | 1,813 | ||||||||
Foreign | 10,562 | 12,042 | 6,369 | ||||||||
| | | | | | | | | | | |
Total income tax expense | $ | 20,831 | $ | 9,536 | $ | 28,148 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of significant components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities are as follows as of December 31, 2013 and 2014 (in thousands): | ||||||||||
2013 | 2014 | ||||||||||
Deferred tax assets: | |||||||||||
Receivables reserve | $ | 1,225 | $ | 1,321 | |||||||
Temporary differences not currently deductible for tax | 6,690 | 8,001 | |||||||||
Deferred compensation | 1,702 | 2,019 | |||||||||
Foreign tax credit carryforwards | 13,575 | 10,576 | |||||||||
Pension | — | 436 | |||||||||
Net operating losses | 2,822 | 4,171 | |||||||||
Valuation allowance | (16,312 | ) | (13,763 | ) | |||||||
| | | | | | | | ||||
Total deferred tax asset | 9,702 | 12,761 | |||||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Property, plant and equipment, net | $ | 23,866 | $ | 27,681 | |||||||
Intangible assets, net | 11,245 | 12,021 | |||||||||
Tax on foreign earnings | — | 1,050 | |||||||||
Pension | 205 | — | |||||||||
| | | | | | | | ||||
Total deferred tax liabilities | 35,316 | 40,752 | |||||||||
| | | | | | | | ||||
Net deferred tax liabilities | $ | 25,614 | $ | 27,991 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities are reflected in the accompanying consolidated balance sheets as follows (in thousands): | ||||||||||
2013 | 2014 | ||||||||||
Deferred tax assets: | |||||||||||
Current | $ | 1,994 | $ | 2,588 | |||||||
Long term | — | — | |||||||||
| | | | | | | | ||||
Total deferred tax asset | $ | 1,994 | $ | 2,588 | |||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Current | $ | 1,601 | $ | 213 | |||||||
Long term | 26,007 | 30,366 | |||||||||
| | | | | | | | ||||
Total deferred tax liabilities | $ | 27,608 | $ | 30,579 | |||||||
| | | | | | | | ||||
Net deferred tax liabilities | $ | 25,614 | $ | 27,991 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of activity related to unrecognized tax benefits | The following shows the activity related to unrecognized tax benefits during the three years ended December 31, 2014 (in thousands): | ||||||||||
Gross unrecognized tax benefits at December 31, 2011 | $ | 6,952 | |||||||||
Increase in uncertain tax positions | 3,384 | ||||||||||
Lapse in statute of limitations | — | ||||||||||
| | | | | |||||||
Gross unrecognized tax benefits at December 31, 2012 | 10,336 | ||||||||||
Increase in uncertain tax positions | 4,137 | ||||||||||
Lapse in statute of limitations | — | ||||||||||
Settlements | (423 | ) | |||||||||
| | | | | |||||||
Gross unrecognized uncertain tax benefits at December 31, 2013 | 14,050 | ||||||||||
Increase in uncertain tax positions | 1,675 | ||||||||||
Lapse in statute of limitations | (226 | ) | |||||||||
Settlements | — | ||||||||||
| | | | | |||||||
Gross unrecognized uncertain tax benefits at December 31, 2014 | $ | 15,499 | |||||||||
| | | | | |||||||
| | | | | |||||||
RETIREMENT_PLANS_Tables
RETIREMENT PLANS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
RETIREMENT PLANS | ||||||||||||||
Schedule of weighted-average rates assumed in the actuarial calculations for the pension plan | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Discount rate | 6.00 | % | 5.75 | % | 5.75 | % | ||||||||
Annual salary increase | 7.50 | % | 7.50 | % | 6.50 | % | ||||||||
Expected long-term return on plan assets | 8.00 | % | 7.00 | % | 7.00 | % | ||||||||
Schedule of changes during the year in the projected benefit obligations and in the fair value of plan assets | Changes during the year in the projected benefit obligations and in the fair value of plan assets are as follows for 2013 and 2014 (in thousands): | |||||||||||||
2013 | 2014 | |||||||||||||
Projected benefit obligations: | ||||||||||||||
Balance at beginning of year: | $ | 11,660 | $ | 12,237 | ||||||||||
Service cost | 543 | 612 | ||||||||||||
Interest cost | 665 | 720 | ||||||||||||
Benefits and settlements paid | (1,444 | ) | (623 | ) | ||||||||||
Actuarial (loss) gain | 1,127 | 1,129 | ||||||||||||
Exchange rate adjustment | (314 | ) | 18 | |||||||||||
| | | | | | | | |||||||
Actuarial loss | $ | 12,237 | $ | 14,093 | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Plan net assets: | ||||||||||||||
Balance at beginning of year: | $ | 12,932 | $ | 12,673 | ||||||||||
Actual return on plan assets | 657 | 267 | ||||||||||||
Company contributions | 854 | 832 | ||||||||||||
Benefits and settlements paid | (1,444 | ) | (623 | ) | ||||||||||
Exchange rate adjustment | (326 | ) | 16 | |||||||||||
| | | | | | | | |||||||
Balance at end of year | $ | 12,673 | $ | 13,165 | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Over (under) funded status of plan | $ | 436 | $ | (928 | ) | |||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Schedule of fair values for the pension plan's net assets, by asset category | The fair values for the pension plan's net assets, by asset category, at December 31, 2014 are as follows (in thousands): | |||||||||||||
Asset Category | Total | Level 1 | Level 2 | Level 3 | ||||||||||
Cash, cash equivalents, money markets and other | $ | 10,532 | $ | 9,784 | $ | 748 | $ | — | ||||||
Equity securities | 1,711 | 1,711 | — | — | ||||||||||
Fixed income securities | 922 | 922 | — | — | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 13,165 | $ | 12,417 | $ | 748 | $ | — | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of weighted-average asset allocations, by asset category | ||||||||||||||
2013 | 2014 | |||||||||||||
Cash, cash equivalents, money markets and other | 77.0 | % | 80.0 | % | ||||||||||
Equity securities | 11.1 | 13.0 | ||||||||||||
Fixed income securities | 11.9 | 7.0 | ||||||||||||
| | | | | | | | |||||||
Total | 100 | % | 100 | % | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Schedule of amounts recognized on the Company's consolidated balance sheets | Amounts recognized on the Company's consolidated balance sheets consist of (in thousands): | |||||||||||||
As of December 31, | ||||||||||||||
2013 | 2014 | |||||||||||||
Other assets | $ | 436 | $ | — | ||||||||||
Other Liabilities | — | 928 | ||||||||||||
Accumulated other comprehensive loss, net of tax | (1,949 | ) | (2,672 | ) | ||||||||||
Schedule of amounts recognized in accumulated other comprehensive loss | Amounts recognized in accumulated other comprehensive loss consist of (in thousands): | |||||||||||||
2013 | 2014 | |||||||||||||
Net actuarial loss | $ | (2,154 | ) | $ | (3,148 | ) | ||||||||
Prior service cost | — | — | ||||||||||||
| | | | | | | | |||||||
Accumulated other comprehensive loss, pre-tax | $ | (2,154 | ) | $ | (3,148 | ) | ||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Accumulated other comprehensive loss, net of tax | $ | (1,949 | ) | $ | (2,672 | ) | ||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Schedule of components of the plan's net periodic pension cost | Components of the plan's net periodic pension cost are as follows for the years ended December 31, 2012, 2013 and 2014 (in thousands): | |||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Service cost | $ | 612 | $ | 543 | $ | 612 | ||||||||
Interest cost | 810 | 665 | 720 | |||||||||||
Expected return on plan assets | (972 | ) | (949 | ) | (848 | ) | ||||||||
Amortization of unrecognized net actuarial loss | 242 | 150 | 218 | |||||||||||
Amortization of prior service costs | — | — | — | |||||||||||
| | | | | | | | | | | ||||
Net periodic pension cost | $ | 692 | $ | 409 | $ | 702 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Schedule of estimated pension benefits | The following estimated pension benefits, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as indicated below (in thousands): | |||||||||||||
Fiscal Year | Pension | |||||||||||||
Benefits | ||||||||||||||
2015 | 565 | |||||||||||||
2016 | 629 | |||||||||||||
2017 | 634 | |||||||||||||
2018 | 761 | |||||||||||||
2019 | 677 | |||||||||||||
2020 - 2024 | 4,865 | |||||||||||||
| | | | | ||||||||||
$ | 8,131 | |||||||||||||
| | | | | ||||||||||
| | | | | ||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Schedule of the Company's obligation for payments under leases | The Company's obligations for payments under these leases are as follows at December 31, 2014 (in thousands): | ||||
2015 | $ | 13,810 | |||
2016 | 13,047 | ||||
2017 | 8,983 | ||||
2018 | 6,372 | ||||
2019 | 2,372 | ||||
Thereafter | 5,319 | ||||
| | | | | |
Total obligations under operating leases | $ | 49,903 | |||
| | | | | |
| | | | | |
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
SEGMENT REPORTING | |||||||||||||||||||||||
Schedule of information for each operating segment | The following tables provide information for each operating segment (in thousands): | ||||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||
U.S. | International | Island | U.S. | Reconciling | Consolidated | ||||||||||||||||||
Wireless | Integrated | Wireless | Wireline | Items | |||||||||||||||||||
Telephony | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
U.S. Wireless | $ | 102,817 | $ | — | $ | — | $ | — | $ | — | $ | 102,817 | |||||||||||
International Wireless | — | 27,084 | 54,379 | — | — | 81,463 | |||||||||||||||||
Wireline | 603 | 65,313 | — | 19,608 | — | 85,524 | |||||||||||||||||
Equipment and Other | 348 | 1,738 | 5,717 | 189 | — | 7,992 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total Revenue | 103,768 | 94,135 | 60,096 | 19,797 | — | 277,796 | |||||||||||||||||
Depreciation and amortization | 16,072 | 17,963 | 11,067 | 2,860 | 2,625 | 50,587 | |||||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 3,323 | 3,323 | |||||||||||||||||
Operating income (loss) | 60,290 | 23,203 | (3,334 | ) | (2,481 | ) | (21,040 | ) | 56,638 | ||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||
U.S. | International | Island | U.S. | Reconciling | Consolidated | ||||||||||||||||||
Wireless | Integrated | Wireless | Wireline | Items | |||||||||||||||||||
Telephony | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
U.S. Wireless | $ | 107,930 | $ | — | $ | — | $ | — | $ | — | $ | 107,930 | |||||||||||
International Wireless | — | 30,334 | 61,098 | — | — | 91,432 | |||||||||||||||||
Wireline | 610 | 61,475 | — | 22,500 | — | 84,585 | |||||||||||||||||
Equipment and Other | 465 | 1,637 | 6,555 | 231 | — | 8,888 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total Revenue | 109,005 | 93,446 | 67,653 | 22,731 | — | 292,835 | |||||||||||||||||
Depreciation and amortization | 14,308 | 17,975 | 10,305 | 3,182 | 2,967 | 48,737 | |||||||||||||||||
Non-cash stock-based compensation | — | — | — | — | 3,805 | 3,805 | |||||||||||||||||
Operating income (loss) | 54,867 | 28,212 | 8,610 | (1,076 | ) | (25,978 | ) | 64,085 | |||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||
U.S. | International | Island | U.S. | Renewable | Reconciling | Consolidated | |||||||||||||||||
Wireless | Integrated | Wireless | Wireline | Energy | Items | ||||||||||||||||||
Telephony | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
U.S. Wireless | $ | 153,040 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 153,040 | |||||||||
International Wireless | — | 26,819 | 61,831 | — | — | — | 88,650 | ||||||||||||||||
Wireline | 609 | 59,129 | — | 25,546 | — | — | 85,284 | ||||||||||||||||
Equipment and Other | 943 | 984 | 6,744 | 253 | 449 | — | 9,373 | ||||||||||||||||
Total Revenue | 154,592 | 86,932 | 68,575 | 25,799 | 449 | — | 336,347 | ||||||||||||||||
Depreciation and amortization | 14,345 | 17,408 | 10,671 | 4,725 | 105 | 3,980 | 51,234 | ||||||||||||||||
Non-cash stock-based compensation | — | — | — | — | — | 4,323 | 4,323 | ||||||||||||||||
Operating income (loss) | 89,187 | 19,628 | 9,046 | (3,668 | ) | (2,218 | ) | (26,399 | ) | 85,576 | |||||||||||||
U.S. | International | Island | U.S. | Renewable | Reconciling | Consolidated | |||||||||||||||||
Wireless | Integrated | Wireless | Wireline | Energy | Items | ||||||||||||||||||
Telephony | |||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||
Net fixed assets | $ | 73,592 | $ | 118,917 | $ | 29,310 | $ | 26,082 | $ | — | $ | 6,731 | $ | 254,632 | |||||||||
Goodwill | 32,148 | — | 5,438 | 7,491 | — | — | 45,077 | ||||||||||||||||
Total assets | 146,346 | 197,903 | 74,427 | 45,351 | — | 395,692 | -1 | 859,719 | |||||||||||||||
December 31, 2014: | |||||||||||||||||||||||
Net fixed assets | $ | 79,910 | $ | 108,972 | $ | 26,590 | $ | 28,113 | $ | 111,342 | $ | 14,655 | $ | 369,582 | |||||||||
Goodwill | 32,148 | — | 5,438 | 7,491 | — | — | 45,077 | ||||||||||||||||
Total assets | 188,377 | 201,335 | 74,563 | 42,446 | 130,124 | 288,162 | -1 | 925,030 | |||||||||||||||
-1 | Includes $4,748 and $175 of assets associated with our discontinued operations as of December 31, 2013 and 2014 respectively. | ||||||||||||||||||||||
Capital Expenditures | |||||||||||||||||||||||
Year Ended December 31, | U.S. | International | Island | U.S. | Renewable | Reconciling | Consolidated | ||||||||||||||||
Wireless | Integrated | Wireless | Wireline | Energy | Items | ||||||||||||||||||
Telephony | |||||||||||||||||||||||
2012 | 9,792 | 14,369 | 4,529 | 10,508 | — | 2,956 | 42,154 | ||||||||||||||||
2013 | 34,895 | 12,452 | 5,536 | 12,552 | — | 3,881 | 69,316 | ||||||||||||||||
2014 | 33,446 | 10,646 | 6,064 | 4,680 | — | 3,464 | 58,300 | ||||||||||||||||
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||
Summary of the Company's quarterly results of operations | Following is a summary of the Company's quarterly results of operations for the years ended December 31, 2013 and 2014 (in thousands): | |||||||||||||
2013 Consolidated for the Three Months Ended | ||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||
Total revenue | $ | 64,832 | $ | 71,625 | $ | 79,350 | 77,028 | |||||||
Operating expenses | 52,754 | 55,719 | 59,312 | 60,965 | ||||||||||
| | | | | | | | | | | | | | |
Income from operations | 12,078 | 15,906 | 20,038 | 16,063 | ||||||||||
Other income (expense), net | (2,249 | ) | (2,707 | ) | (13,042 | ) | 386 | |||||||
| | | | | | | | | | | | | | |
Income from continuing operations before income taxes | 9,829 | 13,199 | 6,996 | 16,449 | ||||||||||
Income taxes | 3,945 | 4,868 | 2,481 | (1,758 | ) | |||||||||
| | | | | | | | | | | | | | |
Income from continuing operations | 5,884 | 8,331 | 4,515 | 18,207 | ||||||||||
Income from discontinued operations: | ||||||||||||||
Income (loss) from discontinued operations, net of tax | 4,034 | 3,092 | (1,960 | ) | — | |||||||||
Gain on sale of discontinued operations, net of tax | — | — | 305,197 | 1,905 | ||||||||||
Income from discontinued operations, net of tax | 4,034 | 3,092 | 303,237 | 1,905 | ||||||||||
| | | | | | | | | | | | | | |
Net income | 9,918 | 11,423 | 307,752 | 20,112 | ||||||||||
Net income attributable to non-controlling interests, net of tax: | ||||||||||||||
Continuing operations | (1,055 | ) | (1,934 | ) | (2,945 | ) | (2,055 | ) | ||||||
Discontinued operations | (87 | ) | (630 | ) | 116 | — | ||||||||
Disposal of discontinued operations | — | — | (28,699 | ) | (200 | ) | ||||||||
| | | | | | | | | | | | | | |
(1,142 | ) | (2,564 | ) | (31,528 | ) | (2,255 | ) | |||||||
Net income attributable to Atlantic Tele-Network, Inc. stockholders | 8,776 | 8,859 | 276,224 | 17,857 | ||||||||||
Net income per weighted average basic share attributable to Atlantic Tele-Network, Inc. stockholders | ||||||||||||||
Continuing operations | 0.31 | 0.41 | 0.1 | 1.02 | ||||||||||
Discontinued operations: | ||||||||||||||
Discontinued operations | 0.25 | 0.16 | (0.12 | ) | — | |||||||||
Gain on sale of discontinued operations | — | — | 17.57 | 0.15 | ||||||||||
| | | | | | | | | | | | | | |
Total discontinued operations | 0.25 | 0.16 | 17.45 | 0.15 | ||||||||||
| | | | | | | | | | | | | | |
Total | 0.56 | 0.57 | 17.55 | 1.17 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Net income per weighted average diluted share attributable to Atlantic Tele-Network, Inc. stockholders | ||||||||||||||
Continuing operations | 0.31 | 0.4 | 0.1 | 1.02 | ||||||||||
Discontinued operations: | ||||||||||||||
Discontinued operations | 0.25 | 0.16 | (0.12 | ) | — | |||||||||
Gain on Sale of discontinued operations | — | — | 17.45 | 0.14 | ||||||||||
| | | | | | | | | | | | | | |
Total discontinued operations | 0.25 | 0.16 | 17.33 | 0.14 | ||||||||||
| | | | | | | | | | | | | | |
Total | 0.56 | 0.56 | 17.43 | 1.16 | ||||||||||
| | | | | | | | | | | | | | |
2014 Consolidated for the Three Months Ended | ||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||
Total revenue | $ | 75,174 | $ | 83,269 | $ | 89,393 | 88,511 | |||||||
Operating expenses | 58,926 | 61,662 | 61,235 | 68,948 | ||||||||||
| | | | | | | | | | | | | | |
Income from operations | 16,248 | 21,607 | 28,158 | 19,563 | ||||||||||
Other income (expense), net | (295 | ) | 53 | 325 | 509 | |||||||||
| | | | | | | | | | | | | | |
Income from continuing operations before income taxes | 15,953 | 21,660 | 28,483 | 20,072 | ||||||||||
Income taxes | 5,552 | 7,338 | 9,569 | 5,689 | ||||||||||
| | | | | | | | | | | | | | |
Income from continuing operations | 10,401 | 14,322 | 18,914 | 14,383 | ||||||||||
Income from discontinued operations: | ||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | — | — | ||||||||||
Gain on sale of discontinued operations, net of tax | — | — | — | 1,102 | ||||||||||
| | | | | | | | | | | | | | |
Income from discontinued operations, net of tax | — | — | — | 1,102 | ||||||||||
| | | | | | | | | | | | | | |
Net income | 10,401 | 14,322 | 18,914 | 15,485 | ||||||||||
Net income attributable to non-controlling interests, net of tax: | ||||||||||||||
Continuing operations | (2,560 | ) | (2,809 | ) | (2,747 | ) | (2,854 | ) | ||||||
Discontinued operations | — | — | — | — | ||||||||||
Disposal of discontinued operations | — | — | — | — | ||||||||||
| | | | | | | | | | | | | | |
(2,560 | ) | (2,809 | ) | (2,747 | ) | (2,854 | ) | |||||||
Net income attributable to Atlantic Tele-Network, Inc. stockholders | 7,841 | 11,513 | 16,167 | 12,631 | ||||||||||
Net income per weighted average basic share attributable to Atlantic Tele-Network, Inc. stockholders | ||||||||||||||
Continuing operations | 0.5 | 0.72 | 1.02 | 0.72 | ||||||||||
Discontinued operations: | ||||||||||||||
Discontinued operations | — | — | — | — | ||||||||||
Gain on sale of discontinued operations | — | — | — | 0.07 | ||||||||||
| | | | | | | | | | | | | | |
Total discontinued operations | — | — | — | 0.07 | ||||||||||
| | | | | | | | | | | | | | |
Total | 0.5 | 0.72 | 1.02 | 0.79 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Net income per weighted average diluted share attributable to Atlantic Tele-Network, Inc. stockholders | ||||||||||||||
Continuing operations | 0.49 | 0.72 | 1.01 | 0.72 | ||||||||||
Discontinued operations: | ||||||||||||||
Discontinued operations | — | — | — | — | ||||||||||
Gain on Sale of discontinued operations | — | — | — | 0.07 | ||||||||||
| | | | | | | | | | | | | | |
Total discontinued operations | — | — | — | 0.07 | ||||||||||
| | | | | | | | | | | | | | |
Total | 0.49 | 0.72 | 1.01 | 0.79 | ||||||||||
| | | | | | | | | | | | | | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Understatement of Transactional Tax Liabilities | General and administrative expense | |
Prior period corrections | |
Correction of immaterial prior period errors in current period | $0.70 |
Understatement of Foreign Exchange Gains | Other Income | |
Prior period corrections | |
Correction of immaterial prior period errors in current period | $1.10 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 20, 2013 | |
Pending Sale Of U.S. Retail Wireless Business | ||||||
Gain (loss) on sale of assets | $1,102,000 | $1,905,000 | $305,197,000 | $1,102,000 | $307,102,000 | |
Alltel Sale | AT&T Mobility | ||||||
Pending Sale Of U.S. Retail Wireless Business | ||||||
Consideration for sale of operations in all-cash transaction | 780,000,000 | |||||
Working capital | 16,828,000 | 16,800,000 | ||||
Gain (loss) on sale of assets | $1,100,000 | $307,102,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | USD ($) | Guyanese dollars | Guyanese dollars |
GYD | GYD | ||
Cash and Cash Equivalents | |||
Deposit with non-insured institutions | $88.20 | ||
Cash | |||
Cash (in GYD) | 57 | 36.9 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fixed assets | |||
Accrued asset retirement obligations | $2.70 | $2.20 | |
Impairment of fixed assets | $0 | $0 | $0 |
Minimum | |||
Fixed assets | |||
Useful life | 3 years | ||
Maximum | |||
Fixed assets | |||
Useful life | 39 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Indefinite Lived Intangible Assets | ||
Telecommunications license impairment | $0 | $0 |
Goodwill impairment | $0 | $0 |
Customer relationships | Maximum | ||
Intangible assets | ||
Estimated life | 12 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 7) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accumulated other comprehensive income (loss) | |||
Balance at beginning of period | ($2,202,000) | ($8,297,000) | |
Adjust funded status of pension plan, net of tax of $0.2 and $0.6 million for the years December 31, 2013 and 2014 respectively | -724,000 | -631,000 | 1,395,000 |
Foreign currency translation adjustment | 4,000 | -259,000 | |
Other comprehensive income before reclassifications, net of taxes of $2.3 million | 3,753,000 | ||
Amounts reclassified from accumulated other comprehensive income, net of taxes of $2.0 million | 3,232,000 | ||
Balance at end of period | -2,921,000 | -2,202,000 | -8,297,000 |
Adjust funded status of pension plan, tax | 600,000 | 200,000 | -1,200,000 |
Other comprehensive income before reclassifications, tax | 641,000 | 2,316,000 | 1,315,000 |
Amounts reclassified from accumulated other comprehensive income, tax | 2,000,000 | ||
Interest Rate Derivative Agreements | |||
Accumulated other comprehensive income (loss) | |||
Balance at beginning of period | -6,985,000 | ||
Other comprehensive income before reclassifications, net of taxes of $2.3 million | 3,753,000 | ||
Amounts reclassified from accumulated other comprehensive income, net of taxes of $2.0 million | 3,232,000 | ||
Projected Pension Benefit Obligation | |||
Accumulated other comprehensive income (loss) | |||
Balance at beginning of period | -1,949,000 | -1,318,000 | |
Adjust funded status of pension plan, net of tax of $0.2 and $0.6 million for the years December 31, 2013 and 2014 respectively | -723,000 | -631,000 | |
Balance at end of period | -2,672,000 | -1,949,000 | |
Translation Adjustment | |||
Accumulated other comprehensive income (loss) | |||
Balance at beginning of period | -253,000 | 6,000 | |
Foreign currency translation adjustment | 4,000 | -259,000 | |
Balance at end of period | ($249,000) | ($253,000) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 8) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting for grants | |||
Amount spent in capital expenditures | $58,300,000 | $69,316,000 | $42,154,000 |
Minimum | |||
Accounting for grants | |||
Long-term power purchase agreements term | 10 years | ||
Term of depreciation of grant | 5 years | ||
Maximum | |||
Accounting for grants | |||
Long-term power purchase agreements term | 25 years | ||
Term of depreciation of grant | 20 years | ||
Stimulus programs | |||
Accounting for grants | |||
Amount spent in capital expenditures | 92,500,000 | ||
Amount that has been funded or will be funded | 67,000,000 | ||
Universal Service Fund programs | |||
Accounting for grants | |||
Amount received | 3,900,000 | 2,400,000 | |
Amount available to support U.S wireless business relating to high-cost areas | $1,300,000 | $1,600,000 |
Recovered_Sheet1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 9) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues | Customer concentration | AT&T | |||
Credit concentrations and significant customers | |||
Percentage of concentration risk | 26.00% | 18.00% | 20.00% |
Revenues | Customer concentration | Verizon | |||
Credit concentrations and significant customers | |||
Percentage of concentration risk | 16.00% | 13.00% | 11.00% |
Accounts receivable | Credit concentration | AT&T | |||
Credit concentrations and significant customers | |||
Percentage of concentration risk | 47.00% | 29.00% | |
Accounts receivable | Credit concentration | Verizon | |||
Credit concentrations and significant customers | |||
Percentage of concentration risk | 7.00% | 10.00% |
Recovered_Sheet2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 10) | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
USD ($) | USD ($) | GYD | GYD | GYD | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | |
Level 1 | Level 1 | Level 2 | Level 2 | Total | Total | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||
Foreign Currency Gains and Losses | |||||||||||
Value of a Guyana dollar to one U.S. dollar | 210 | 210 | 205 | ||||||||
Foreign currency gain (loss) | $1,100 | $0 | |||||||||
Fair value of financial instruments | |||||||||||
Certificates of deposit | 363 | 363 | 363 | 363 | |||||||
Money market funds | 1,493 | 2,244 | 1,493 | 2,244 | |||||||
Total assets measured at fair value | 1,493 | 2,244 | 363 | 363 | 1,856 | 2,607 | |||||
Debt (Note 8) | 38,877 | 38,877 | |||||||||
Total liabilities measured at fair value | $38,877 | $38,877 |
Recovered_Sheet3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 11) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation from basic to diluted weighted average common shares outstanding | |||
Basic weighted-average common shares outstanding | 15,898 | 15,704 | 15,531 |
Stock options (in shares) | 115 | 113 | 88 |
Diluted weighted-average common shares outstanding | 16,013 | 15,817 | 15,619 |
Anti-dilutive common shares not included for computation of earnings per share | |||
Anti-dilutive potential shares excluded from the computation of diluted weighted average shares outstanding (in shares) | 61 | 367 | |
Stock options | |||
Anti-dilutive common shares not included for computation of earnings per share | |||
Anti-dilutive potential shares excluded from the computation of diluted weighted average shares outstanding (in shares) | 61 | 367 |
Recovered_Sheet4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 12) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-based compensation | |||
Non-cash stock-based compensation | $4,323 | $4,454 | $3,323 |
Stock options | |||
Stock-based compensation | |||
Non-cash stock-based compensation | 900 | 1,400 | 1,800 |
Vesting period | 4 years | ||
Restricted Stock | |||
Stock-based compensation | |||
Non-cash stock-based compensation | $3,400 | $3,100 | $1,800 |
Restricted shares of common stock issued (in shares) | 109,318 | 100,902 | 72,083 |
Vesting period | 4 years |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 24 Months Ended | 0 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 24, 2014 | Dec. 31, 2014 | |
Purchase price allocation: | ||||||||||||||
Revenue | $88,511,000 | $89,393,000 | $83,269,000 | $75,174,000 | $77,028,000 | $79,350,000 | $71,625,000 | $64,832,000 | $336,347,000 | $292,835,000 | $277,796,000 | |||
Minimum | ||||||||||||||
Purchase price allocation: | ||||||||||||||
Useful life | 3 years | |||||||||||||
Minimum | Solar assets | ||||||||||||||
Purchase price allocation: | ||||||||||||||
Useful life | 20 years | |||||||||||||
Maximum | ||||||||||||||
Purchase price allocation: | ||||||||||||||
Useful life | 39 years | |||||||||||||
Maximum | Solar assets | ||||||||||||||
Purchase price allocation: | ||||||||||||||
Useful life | 23 years | |||||||||||||
Ahana Renewables | ||||||||||||||
Acquisitions | ||||||||||||||
Total transaction value | 117,100,000 | |||||||||||||
Total consideration | 78,782,000 | |||||||||||||
Cash consideration paid | 78,800,000 | |||||||||||||
Assumed debt | 38,900,000 | |||||||||||||
Profit or loss allocation percentage | 1.00% | |||||||||||||
Period of placed in service date for solar assets | 5 years | |||||||||||||
Profit or loss allocation percentage after flip date | 95.00% | |||||||||||||
Purchase price allocation: | ||||||||||||||
Cash | 6,571,000 | |||||||||||||
Other current assets | 2,011,000 | |||||||||||||
Plant and equipment | 111,446,000 | |||||||||||||
Current liabilities | -853,000 | |||||||||||||
Long-term debt | -38,877,000 | |||||||||||||
Non-controlling interests | -7,400,000 | |||||||||||||
Net assets acquired | 78,782,000 | |||||||||||||
Weighted average tax rate percentage | 40.00% | |||||||||||||
Discounted rate used for cash flows | 11.75% | |||||||||||||
Revenue | 400,000 | |||||||||||||
External acquisition related charges relating to legal, accounting and consulting services. | 2,500,000 | |||||||||||||
Ahana Renewables | Solar assets | ||||||||||||||
Purchase price allocation: | ||||||||||||||
Useful life | 25 years | |||||||||||||
Discounted rate used for solar assets | 8.00% | |||||||||||||
Ahana Renewables | Minimum | ||||||||||||||
Acquisitions | ||||||||||||||
Percentage of noncontrolling interest initial contribution to be used as basis for buyout option | 10.00% | |||||||||||||
Ahana Renewables | Maximum | ||||||||||||||
Acquisitions | ||||||||||||||
Percentage of noncontrolling interest initial contribution to be used as basis for buyout option | 15.00% | |||||||||||||
Ahana Renewables | Restricted cash | ||||||||||||||
Purchase price allocation: | ||||||||||||||
Cash | $5,884,000 | |||||||||||||
Ahana Renewables | Tax Equity Investor | ||||||||||||||
Acquisitions | ||||||||||||||
Profit or loss allocation percentage | 99.00% | |||||||||||||
Profit or loss allocation percentage after flip date | 5.00% | |||||||||||||
Ahana Renewables | Tax Equity Investor | Minimum | ||||||||||||||
Acquisitions | ||||||||||||||
Period to receive return on investment | 2 years | |||||||||||||
Ahana Renewables | Tax Equity Investor | Maximum | ||||||||||||||
Acquisitions | ||||||||||||||
Period to receive return on investment | 4 years |
DISCONTINUED_OPERATIONS_SALE_O2
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS (Details) - 10K (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 20, 2013 | Mar. 31, 2015 | |
Proceeds: | ||||||||||
Current assets | $451,374,000 | $472,003,000 | $451,374,000 | $472,003,000 | ||||||
Property, plant and equipment, net | 369,582,000 | 254,632,000 | 369,582,000 | 254,632,000 | ||||||
Telecommunication licenses | 44,090,000 | 39,687,000 | 44,090,000 | 39,687,000 | ||||||
Other assets | 7,519,000 | 7,096,000 | 7,519,000 | 7,096,000 | ||||||
Liabilities sold: | ||||||||||
Current liabilities | -104,069,000 | -121,073,000 | -104,069,000 | -121,073,000 | ||||||
Other liabilities | -19,619,000 | -12,784,000 | -19,619,000 | -12,784,000 | ||||||
Net gain on sale | 1,102,000 | 1,905,000 | 305,197,000 | 1,102,000 | 307,102,000 | |||||
Restricted cash, current | 39,703,000 | 39,000,000 | 39,703,000 | 39,000,000 | ||||||
Restricted cash, long-term | 5,475,000 | 39,000,000 | 5,475,000 | 39,000,000 | ||||||
Impairment of intangible assets | 0 | 0 | ||||||||
Minority shareholders' interests in sale of operations | 200,000 | 28,699,000 | 28,899,000 | |||||||
Amount distributed to minority shareholders | 16,331,000 | 26,155,000 | 2,458,000 | |||||||
Amount included in non-controlling interests | 60,960,000 | 56,525,000 | 60,960,000 | 56,525,000 | ||||||
Revenues and income from discontinued operations | ||||||||||
Income from discontinued operations, net of tax expense (benefit) of $1,967, $13,816 and $2,512 respectively | -1,960,000 | 3,092,000 | 4,034,000 | 5,166,000 | 29,202,000 | |||||
AT&T Mobility | Alltel Wireless | ||||||||||
SALE OF U.S. RETAIL WIRELESS BUSINESS | ||||||||||
Consideration for sale of operations in all-cash transaction | 780,000,000 | |||||||||
AT&T Mobility | Trade names | Alltel Wireless | ||||||||||
Liabilities sold: | ||||||||||
Impairment of intangible assets | 11,900,000 | |||||||||
Alltel Sale | AT&T Mobility | ||||||||||
SALE OF U.S. RETAIL WIRELESS BUSINESS | ||||||||||
Consideration for sale of operations in all-cash transaction | 780,000,000 | |||||||||
Proceeds: | ||||||||||
Received | 702,000,000 | |||||||||
Escrowed | 78,000,000 | |||||||||
Working capital | 16,828,000 | 16,800,000 | ||||||||
Adjusted proceeds | 796,828,000 | |||||||||
Current assets | 51,597,000 | 51,597,000 | ||||||||
Property, plant and equipment, net | 190,970,000 | 190,970,000 | ||||||||
Telecommunication licenses | 50,553,000 | 50,553,000 | ||||||||
Other intangible assets | 37,434,000 | 37,434,000 | ||||||||
Other assets | 13,202,000 | 13,202,000 | ||||||||
Liabilities sold: | ||||||||||
Current liabilities | -40,674,000 | -40,674,000 | ||||||||
Other liabilities | -22,796,000 | -22,796,000 | ||||||||
Net assets sold or impaired | 280,286,000 | 280,286,000 | ||||||||
Less: Transaction related costs | -13,517,000 | |||||||||
Pre-tax gain | 503,025,000 | |||||||||
Less: Income taxes at effective rate | 195,923,000 | |||||||||
Net gain on sale | 1,100,000 | 307,102,000 | ||||||||
First release of amount of escrowed cash | 39,000,000 | |||||||||
Second release of amount of escrowed cash | 39,000,000 | |||||||||
Restricted cash | 78,000,000 | 78,000,000 | ||||||||
Restricted cash, current | 39,000,000 | 39,000,000 | 39,000,000 | 39,000,000 | ||||||
Restricted cash, long-term | 39,000,000 | 39,000,000 | ||||||||
Minority shareholders' interests in sale of operations | 28,900,000 | |||||||||
Amount distributed to minority shareholders | 5,800,000 | 18,900,000 | ||||||||
Amount included in non-controlling interests | 4,500,000 | 10,000,000 | 4,500,000 | 10,000,000 | ||||||
Revenues and income from discontinued operations | ||||||||||
Revenue from discontinued operations | 299,519,000 | 464,382,000 | ||||||||
Income from discontinued operations, net of tax expense (benefit) of $1,967, $13,816 and $2,512 respectively | 5,166,000 | 29,202,000 | ||||||||
Income from discontinued operations, tax expense (benefit) | $2,512,000 | $13,816,000 |
ACCOUNTS_RECEIVABLE_Details
ACCOUNTS RECEIVABLE (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ACCOUNTS RECEIVABLE | ||
Accounts receivable | $64,217 | $47,426 |
Less: allowance for doubtful accounts | -11,344 | -9,746 |
Total accounts receivable, net | 52,873 | 37,680 |
U.S. wireless, Retail | ||
ACCOUNTS RECEIVABLE | ||
Accounts receivable | 21,367 | 19,833 |
U.S. wireless, Wholesale | ||
ACCOUNTS RECEIVABLE | ||
Accounts receivable | 41,245 | 27,539 |
Other | ||
ACCOUNTS RECEIVABLE | ||
Accounts receivable | $1,605 | $54 |
FIXED_ASSETS_Details
FIXED ASSETS (Details) (USD $) | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Fixed Assets | ||||
Total plant in service | $719,435,000 | $561,251,000 | 719,435,000 | |
Total property, plant, and equipment in service | 763,417,000 | 606,912,000 | 763,417,000 | |
Less: Accumulated depreciation | -393,835,000 | -352,280,000 | -393,835,000 | |
Net fixed assets | 369,582,000 | 254,632,000 | 369,582,000 | |
Depreciation and amortization | 50,300,000 | 48,300,000 | 50,000,000 | |
Capital expenditures offset by grants | 2,300,000 | 31,600,000 | 30,600,000 | |
Minimum | ||||
Fixed Assets | ||||
Useful Life | 3 years | |||
Maximum | ||||
Fixed Assets | ||||
Useful Life | 39 years | |||
Telecommunications equipment and towers | ||||
Fixed Assets | ||||
Total plant in service | 514,814,000 | 471,265,000 | 514,814,000 | |
Telecommunications equipment and towers | Minimum | ||||
Fixed Assets | ||||
Useful Life | 5 years | |||
Telecommunications equipment and towers | Maximum | ||||
Fixed Assets | ||||
Useful Life | 15 years | |||
Solar assets | ||||
Fixed Assets | ||||
Total plant in service | 111,446,000 | 111,446,000 | ||
Solar assets | Minimum | ||||
Fixed Assets | ||||
Useful Life | 20 years | |||
Solar assets | Maximum | ||||
Fixed Assets | ||||
Useful Life | 23 years | |||
Office and computer equipment | ||||
Fixed Assets | ||||
Total plant in service | 46,757,000 | 46,680,000 | 46,757,000 | |
Office and computer equipment | Minimum | ||||
Fixed Assets | ||||
Useful Life | 3 years | |||
Office and computer equipment | Maximum | ||||
Fixed Assets | ||||
Useful Life | 10 years | |||
Buildings | ||||
Fixed Assets | ||||
Total plant in service | 18,079,000 | 18,002,000 | 18,079,000 | |
Buildings | Minimum | ||||
Fixed Assets | ||||
Useful Life | 15 years | |||
Buildings | Maximum | ||||
Fixed Assets | ||||
Useful Life | 39 years | |||
Transportation vehicles | ||||
Fixed Assets | ||||
Total plant in service | 7,589,000 | 6,984,000 | 7,589,000 | |
Transportation vehicles | Minimum | ||||
Fixed Assets | ||||
Useful Life | 3 years | |||
Transportation vehicles | Maximum | ||||
Fixed Assets | ||||
Useful Life | 10 years | |||
Leasehold improvements | ||||
Fixed Assets | ||||
Total plant in service | 11,494,000 | 11,380,000 | 11,494,000 | |
Land | ||||
Fixed Assets | ||||
Total plant in service | 1,146,000 | 1,162,000 | 1,146,000 | |
Furniture and fixtures | ||||
Fixed Assets | ||||
Total plant in service | 8,110,000 | 5,778,000 | 8,110,000 | |
Furniture and fixtures | Minimum | ||||
Fixed Assets | ||||
Useful Life | 5 years | |||
Furniture and fixtures | Maximum | ||||
Fixed Assets | ||||
Useful Life | 10 years | |||
Construction in progress | ||||
Fixed Assets | ||||
Total property, plant, and equipment in service | $43,982,000 | $45,661,000 | 43,982,000 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
item | ||
Goodwill | ||
Impairment charge | $0 | $0 |
Changes in the carrying amounts of goodwill | 0 | 0 |
Number of reporting units where fair value exceeded carrying value | 1 | |
Percentage by which fair value of one reporting unit exceeded carrying value | 24.00% | |
Goodwill balance | 45,077,000 | 45,077,000 |
Certain segment reporting unit | ||
Goodwill | ||
Goodwill balance | $7,500,000 | $7,500,000 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
item | |||
Telecommunications licenses | |||
Impairment of intangible assets | $0 | $0 | |
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the beginning of the period | 39,687 | ||
Balance at the end of the period | 44,090 | 39,687 | |
Certain Island Wireless Reporting Unit | |||
Telecommunications licenses | |||
Number of reporting units where book value exceeded fair value | 1 | ||
Telecommunications Licenses | |||
Telecommunications licenses | |||
Impairment of intangible assets | 0 | 0 | |
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the beginning of the period | 39,687 | 39,905 | |
Acquired licenses | 5,025 | 186 | |
Licenses sold | -404 | ||
Amortization | -622 | ||
Balance at the end of the period | 44,090 | 39,687 | |
Telecommunications Licenses | U.S. Wireless | |||
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the beginning of the period | 19,888 | 20,106 | |
Acquired licenses | 5,025 | 186 | |
Licenses sold | -404 | ||
Balance at the end of the period | 24,913 | 19,888 | |
Telecommunications Licenses | U.S. Wireline | |||
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the end of the period | 31 | 31 | 31 |
Telecommunications Licenses | Island Wireless | |||
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the beginning of the period | 19,768 | ||
Amortization | -622 | ||
Balance at the end of the period | 19,146 | 19,768 | |
Telecommunications Licenses | Certain Island Wireless Reporting Unit | |||
Telecommunications licenses | |||
Impairment of intangible assets | 3,400 |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS (Details 3) (Customer relationships, Island Wireless, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Customer relationships | Island Wireless | |||
Finite-lived intangible assets | |||
Amortization | $400 | $400 | $400 |
Future Amortization | |||
2015 | 343 | ||
2016 | 309 | ||
2017 | 276 | ||
2018 | 200 | ||
2019 | 145 | ||
Thereafter | 223 | ||
Total | $1,496 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 12 Months Ended | 0 Months Ended | 16 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | 18-May-12 | Sep. 20, 2013 | Nov. 14, 2013 | Jun. 17, 2013 | Dec. 19, 2014 | Jun. 30, 2013 |
item | ||||||||
Ahana Renewables | ||||||||
Long-term debt | ||||||||
Long-term debt | $38.90 | |||||||
Ahana Renewables | Public Service Electric & Gas | ||||||||
Long-term debt | ||||||||
Effective interest rate (as a percent) | 11.30% | |||||||
Minimum | Ahana Renewables | ||||||||
Long-term debt | ||||||||
Effective interest rate (as a percent) | 4.50% | |||||||
Maximum | Ahana Renewables | ||||||||
Long-term debt | ||||||||
Effective interest rate (as a percent) | 6.00% | |||||||
Amended Credit Facility | ||||||||
Long-term debt | ||||||||
Borrowings | 0 | |||||||
Term loans | ||||||||
Long-term debt | ||||||||
Number of loans repaid in full | 2 | |||||||
Interest expenses | 4.7 | |||||||
Term loans | Credit facility | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | 275 | |||||||
Number of term loans | 2 | |||||||
Maximum aggregate additional borrowings subject to lender approval | 100 | |||||||
Term loans | Credit facility | LIBOR | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | LIBOR | |||||||
Term loans | Credit facility | Base rate | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | Base Rate | |||||||
Term loans | Credit facility | One-week LIBOR | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | one-week LIBOR | |||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||||
Term loans | Credit facility | One-month LIBOR | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | one-month LIBOR | |||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||||
Term loans | Credit facility | Prime Rate | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | Prime Rate | |||||||
Term loans | Credit facility | Minimum | LIBOR | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 2.00% | |||||||
Term loans | Credit facility | Minimum | Base rate | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||||
Term loans | Credit facility | Maximum | LIBOR | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 4.00% | |||||||
Term loans | Credit facility | Maximum | Base rate | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 3.00% | |||||||
Revolving credit facility | Credit facility | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | 100 | |||||||
Revolving credit facility | Credit facility | LIBOR | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | LIBOR | |||||||
Revolving credit facility | Credit facility | Base rate | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | Base Rate | |||||||
Revolving credit facility | Credit facility | Minimum | ||||||||
Long-term debt | ||||||||
Commitment fee (as a percent) | 0.25% | |||||||
Revolving credit facility | Credit facility | Minimum | LIBOR | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 2.00% | |||||||
Revolving credit facility | Credit facility | Minimum | Base rate | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||||
Revolving credit facility | Credit facility | Maximum | ||||||||
Long-term debt | ||||||||
Commitment fee (as a percent) | 0.50% | |||||||
Revolving credit facility | Credit facility | Maximum | LIBOR | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 3.50% | |||||||
Revolving credit facility | Credit facility | Maximum | Base rate | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 2.50% | |||||||
Revolving credit facility | Amended Credit Facility | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | 225 | |||||||
Revolving credit facility | Amended Credit Facility | LIBOR | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | LIBOR | |||||||
Revolving credit facility | Amended Credit Facility | Base rate | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | base rate | |||||||
Revolving credit facility | Amended Credit Facility | Minimum | ||||||||
Long-term debt | ||||||||
Commitment fee (as a percent) | 0.18% | |||||||
Revolving credit facility | Amended Credit Facility | Minimum | LIBOR | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||||
Revolving credit facility | Amended Credit Facility | Minimum | Base rate | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||||
Revolving credit facility | Amended Credit Facility | Maximum | ||||||||
Long-term debt | ||||||||
Commitment fee (as a percent) | 0.25% | |||||||
Revolving credit facility | Amended Credit Facility | Maximum | LIBOR | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 1.75% | |||||||
Revolving credit facility | Amended Credit Facility | Maximum | Base rate | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 0.75% | |||||||
Swingline sub-facility | Credit facility | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | 10 | |||||||
Swingline sub-facility | Credit facility | Base rate | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | Base Rate | |||||||
Swingline sub-facility | Credit facility | Minimum | Base rate | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||||
Swingline sub-facility | Credit facility | Maximum | Base rate | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 2.00% | |||||||
Swingline sub-facility | Amended Credit Facility | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | 10 | |||||||
Swingline sub-facility | Amended Credit Facility | Base rate | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | base rate | |||||||
Swingline sub-facility | Amended Credit Facility | One-week LIBOR | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | one-week LIBOR | |||||||
Swingline sub-facility | Amended Credit Facility | One-month LIBOR | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | one-month LIBOR | |||||||
Swingline sub-facility | Amended Credit Facility | Prime Rate | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | prime rate | |||||||
Swingline sub-facility | Amended Credit Facility | Federal Funds Effective Rate | ||||||||
Long-term debt | ||||||||
Description of variable rate basis | federal funds effective rate | |||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||||
Swingline sub-facility | Amended Credit Facility | Minimum | Base rate | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||||
Letter of credit sub-facility | ||||||||
Long-term debt | ||||||||
Outstanding letters of credit | 10.6 | |||||||
Letter of credit sub-facility | Alltel Mobility Funds | ||||||||
Long-term debt | ||||||||
Termination of facility | 19.9 | |||||||
Letter of credit sub-facility | Universal Service Administrative Company | ||||||||
Long-term debt | ||||||||
Outstanding letters of credit | 29.8 | |||||||
Termination of facility | 19.9 | |||||||
Letter of credit sub-facility | Credit facility | ||||||||
Long-term debt | ||||||||
Amount of pending awards of mobility fund grants | 68.8 | |||||||
Letter of credit sub-facility | Credit facility | Universal Service Administrative Company | ||||||||
Long-term debt | ||||||||
Outstanding letters of credit | 29.8 | |||||||
Letter of credit sub-facility | Amended Credit Facility | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | 55 | 10 | ||||||
Commitment fee (as a percent) | 1.75% | |||||||
Letter of credit sub-facility | Amended Credit Facility | Alltel Mobility Funds | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | 25 | |||||||
Amount of pending awards of mobility fund grants | 68.8 | |||||||
Letter of credit sub-facility | Amended Credit Facility | Universal Service Administrative Company | ||||||||
Long-term debt | ||||||||
Outstanding letters of credit | $9.90 | $29.80 |
DERIVATIVE_INSTRUMENTS_AND_HED2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) (Interest rate derivative, USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Sep. 20, 2013 |
Interest rate derivative | |
Derivative instruments and hedging activities | |
Payment made to counterparties for termination of derivatives | $5.40 |
DERIVATIVE_INSTRUMENTS_AND_HED3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) (Interest rate derivative, Designated as cash flow hedges, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Interest rate derivative | Designated as cash flow hedges | |
Derivative instruments and hedging activities | |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | $6,255 |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) | $764 |
MOBILITY_FUND_GRANTS_Details
MOBILITY FUND GRANTS (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Aug. 31, 2013 | Nov. 14, 2013 | Sep. 20, 2013 | Jun. 30, 2013 |
item | |||||
MOBILITY FUND GRANTS | |||||
Number of new funds created by FCC | 2 | ||||
Period over which a portion of the Mobility Funds is used to offset the costs of supporting the networks | 5 years | ||||
Letter of credit sub-facility | |||||
MOBILITY FUND GRANTS | |||||
Letters of credit posted to USAC | 10.6 | ||||
Alltel Mobility Funds | |||||
MOBILITY FUND GRANTS | |||||
Mobility Funds approved by FCC | 47 | ||||
Alltel Mobility Funds | Letter of credit sub-facility | |||||
MOBILITY FUND GRANTS | |||||
Amount terminated | 19.9 | ||||
Wholesale Mobility Funds | |||||
MOBILITY FUND GRANTS | |||||
Mobility Funds approved by FCC | 21.7 | ||||
Wholesale Mobility Funds | U.S. Wireless | |||||
MOBILITY FUND GRANTS | |||||
Mobility Funds received | 7.3 | ||||
Grant funds used to offset fixed asset related costs | 1.2 | ||||
Wholesale Mobility Funds | U.S. Wireless | Other current liabilities | |||||
MOBILITY FUND GRANTS | |||||
Mobility Funds received | 2.3 | ||||
Wholesale Mobility Funds | U.S. Wireless | Other long-term liabilities | |||||
MOBILITY FUND GRANTS | |||||
Mobility Funds received | 3.8 | ||||
Universal Service Administrative Company | Letter of credit sub-facility | |||||
MOBILITY FUND GRANTS | |||||
Letters of credit posted to USAC | 29.8 | ||||
Cash payment of penalty fees for default | 4.6 | ||||
Amount terminated | $19.90 |
EQUITY_Details
EQUITY (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Treasury Stock | |||
Shares Repurchased | 34,293 | 163,222 | 9,175 |
Aggregate Cost | $2,160,000 | $8,103,000 | $344,000 |
Average Repurchase Price (in dollars per share) | $63.01 | $49.64 | $37.51 |
Stock-based compensation | |||
Number of shares reserved to be granted under the plan | 2,000,000 | ||
Number of Options | |||
Exercised (in shares) | -43,034 | -303,536 | -62,575 |
Stock options | |||
Stock-based compensation | |||
Expiration term | 10 years | ||
Vesting period | 4 years | ||
Number of Options | |||
Outstanding at the beginning of the period (in shares) | 401,287 | 720,448 | |
Exercised (in shares) | -43,034 | -303,536 | |
Forfeited- Vested (in shares) | -11,625 | ||
Forfeited- Unvested (in shares) | -7,000 | -4,000 | |
Outstanding at the end of the period (in shares) | 351,253 | 401,287 | 720,448 |
Vested and expected to vest at the end of the period (in shares) | 351,142 | 398,036 | |
Exercisable at the end of the period (in shares) | 290,128 | 241,662 | |
Weighted Avg. Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $36.63 | $34.31 | |
Exercised (in dollars per share) | $37.68 | $30.64 | |
Forfeited- Vested (in dollars per share) | $46.01 | ||
Forfeited- Unvested (in dollars per share) | $34.22 | $45.22 | |
Outstanding at the end of the period (in dollars per share) | $36.55 | $36.63 | $34.31 |
Vested and expected to vest at the end of the period (in dollars per share) | $36.56 | $35.86 | |
Exercisable at the end of the period (in dollars per share) | $36.81 | $35.86 | |
Weighted Average Remaining Contractual Term | |||
Outstanding | 5 years | 6 years | |
Vested and expected to vest | 5 years | 6 years | |
Exercisable | 4 years 7 months 6 days | 5 years 2 months 12 days | |
Aggregate Intrinsic Value | |||
Outstanding | 10,901,529 | 8,000,149 | |
Vested and expected to vest | 10,987,590 | 7,934,478 | |
Exercisable | 8,929,815 | 5,004,299 | |
Unamortized stock based compensation | |||
Unamortized stock based compensation | 400,000 | ||
Weighted-average period for recognition of unamortized stock-based compensation cost | 1 year | ||
Stock-based compensation, additional disclosures | |||
Weighted-average fair value of options granted (in dollars per share) | $15.27 | ||
Aggregate intrinsic value of options exercised | 1,098,336,000 | 6,111,000 | 938,000 |
Cash proceeds received upon exercise of options | 1,621,000 | 2,669,000 | 1,452,000 |
Excess tax benefits from share-based compensation | 513,000 | 2,101,000 | -362,000 |
Weighted-average assumptions using Black-Scholes option-pricing model for estimating fair value of each option granted | |||
Risk-free interest rate (as a percent) | 1.40% | ||
Expected dividend yield (as a percent) | 2.50% | ||
Expected life | 6 years 3 months | ||
Expected volatility (as a percent) | 53.00% | ||
Stock compensation expense | |||
Stock compensation expense | 900,000 | 1,400,000 | 1,800,000 |
Restricted Stock | |||
Stock-based compensation | |||
Vesting period | 4 years | ||
Unamortized stock based compensation | |||
Unamortized stock based compensation | 8,100,000 | ||
Weighted-average period for recognition of unamortized stock-based compensation cost | 2 years 9 months 18 days | ||
Stock compensation expense | |||
Stock compensation expense | $3,400,000 | $3,100,000 | $1,800,000 |
Shares | |||
Unvested at the beginning of the period (in shares) | 154,519 | 103,853 | |
Granted (in shares) | 109,318 | 100,902 | 72,083 |
Forfeited (in shares) | -8,500 | -250 | |
Vested and issued (in shares) | -60,194 | -49,986 | |
Unvested at the end of the period (in shares) | 195,143 | 154,519 | 103,853 |
Weighted Avg. Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $44.04 | $39.63 | |
Granted (in dollars per share) | $64.73 | $48.54 | |
Forfeited (in dollars per share) | $51.44 | $46.85 | |
Vested and issued (in dollars per share) | $44.61 | $43.96 | |
Unvested at the end of the period (in dollars per share) | $55.13 | $44.04 | $39.63 |
2008 Equity Incentive Plan | Restricted Stock | |||
Stock-based compensation | |||
Vesting period | 4 years |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of income before income taxes | |||||||||||
Domestic | $57,767 | $13,697 | $26,249 | ||||||||
Foreign | 28,401 | 32,776 | 18,547 | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | $20,072 | $28,483 | $21,660 | $15,953 | $16,449 | $6,996 | $13,199 | $9,829 | $86,168 | $46,473 | $44,796 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation from the tax computed at statutory income tax rates to the Company's income tax expense | |||||||||||
Tax computed at statutory U.S. federal income tax rates | $30,160 | $16,270 | $15,679 | ||||||||
Valuation allowance | -887 | 711 | 832 | ||||||||
Foreign tax reserve | 2,095 | 2,081 | 2,359 | ||||||||
State taxes | 1,813 | 1,032 | 906 | ||||||||
Research and development credit | -1,971 | ||||||||||
Other, net | -191 | 516 | 1,711 | ||||||||
Income tax expense | 5,689 | 9,569 | 7,338 | 5,552 | -1,758 | 2,481 | 4,868 | 3,945 | 28,148 | 9,536 | 20,831 |
Guyana | |||||||||||
Reconciliation from the tax computed at statutory income tax rates to the Company's income tax expense | |||||||||||
Income taxes in excess (below) of statutory U.S. tax rates | -130 | 701 | 812 | ||||||||
Bermuda and Turks & Caicos | |||||||||||
Reconciliation from the tax computed at statutory income tax rates to the Company's income tax expense | |||||||||||
Income taxes in excess (below) of statutory U.S. tax rates | -4,712 | -3,203 | 503 | ||||||||
Turks & Caicos intercompany note receivable write-down | |||||||||||
Reconciliation from the tax computed at statutory income tax rates to the Company's income tax expense | |||||||||||
Income taxes in excess (below) of statutory U.S. tax rates | ($8,572) |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current: | |||||||||||
United States-Federal | $14,761,000 | $1,703,000 | $4,812,000 | ||||||||
United States-State | 1,347,000 | 895,000 | 2,418,000 | ||||||||
Foreign | 12,153,000 | 11,787,000 | 11,099,000 | ||||||||
Total current income tax expense | 28,261,000 | 14,385,000 | 18,329,000 | ||||||||
Deferred: | |||||||||||
United States-Federal | 5,205,000 | -5,273,000 | 4,050,000 | ||||||||
United States-State | 466,000 | 169,000 | -1,011,000 | ||||||||
Foreign | -5,784,000 | 255,000 | -537,000 | ||||||||
Total deferred income tax expense (benefit) | -113,000 | -4,849,000 | 2,502,000 | ||||||||
Consolidated: | |||||||||||
United States-Federal | 19,966,000 | -3,570,000 | 8,862,000 | ||||||||
United States-State | 1,813,000 | 1,064,000 | 1,407,000 | ||||||||
Foreign | 6,369,000 | 12,042,000 | 10,562,000 | ||||||||
Income tax expense | 5,689,000 | 9,569,000 | 7,338,000 | 5,552,000 | -1,758,000 | 2,481,000 | 4,868,000 | 3,945,000 | 28,148,000 | 9,536,000 | 20,831,000 |
Deferred tax assets: | |||||||||||
Receivables reserve | 1,321,000 | 1,225,000 | 1,321,000 | 1,225,000 | |||||||
Temporary differences not currently deductible for tax | 8,001,000 | 6,690,000 | 8,001,000 | 6,690,000 | |||||||
Deferred compensation | 2,019,000 | 1,702,000 | 2,019,000 | 1,702,000 | |||||||
Foreign tax credit carryforwards | 10,576,000 | 13,575,000 | 10,576,000 | 13,575,000 | |||||||
Pension | 436,000 | 436,000 | |||||||||
Net operating losses | 4,171,000 | 2,822,000 | 4,171,000 | 2,822,000 | |||||||
Valuation allowance | -13,763,000 | -16,312,000 | -13,763,000 | -16,312,000 | |||||||
Total deferred tax asset | 12,761,000 | 9,702,000 | 12,761,000 | 9,702,000 | |||||||
Deferred tax liabilities: | |||||||||||
Property, plant and equipment, net | 27,681,000 | 23,866,000 | 27,681,000 | 23,866,000 | |||||||
Intangible assets, net | 12,021,000 | 11,245,000 | 12,021,000 | 11,245,000 | |||||||
Tax on foreign earnings | 1,050,000 | 1,050,000 | |||||||||
Pension | 205,000 | 205,000 | |||||||||
Total deferred tax liabilities | 40,752,000 | 35,316,000 | 40,752,000 | 35,316,000 | |||||||
Net deferred tax liabilities | 27,991,000 | 25,614,000 | 27,991,000 | 25,614,000 | |||||||
Deferred tax assets: | |||||||||||
Current | 2,588,000 | 1,994,000 | 2,588,000 | 1,994,000 | |||||||
Total deferred tax asset | 2,588,000 | 1,994,000 | 2,588,000 | 1,994,000 | |||||||
Deferred tax liabilities: | |||||||||||
Current | 213,000 | 1,601,000 | 213,000 | 1,601,000 | |||||||
Long term | 30,366,000 | 26,007,000 | 30,366,000 | 26,007,000 | |||||||
Total deferred tax liabilities | 30,579,000 | 27,608,000 | 30,579,000 | 27,608,000 | |||||||
Net deferred tax liabilities | 27,991,000 | 25,614,000 | 27,991,000 | 25,614,000 | |||||||
Operating loss carryforwards | |||||||||||
Period of cumulative loss | 3 years | ||||||||||
Undistributed earnings of foreign subsidiaries considered indefinitely reinvested | 131,600,000 | 131,600,000 | |||||||||
State | |||||||||||
Operating loss carryforwards | |||||||||||
Net operating loss carryforwards | 32,100,000 | 32,100,000 | |||||||||
NOL carryforward valuation allowance | 1,700,000 | 1,100,000 | 1,700,000 | 1,100,000 | |||||||
Foreign | |||||||||||
Operating loss carryforwards | |||||||||||
Net operating loss carryforwards | 8,700,000 | 8,700,000 | |||||||||
NOL carryforward valuation allowance | 1,400,000 | 1,600,000 | 1,400,000 | 1,600,000 | |||||||
Tax credit carryforwards that expired during the period | 3,000,000 | 1,800,000 | 3,000,000 | 1,800,000 | |||||||
Foreign | Aruba | |||||||||||
Operating loss carryforwards | |||||||||||
Net operating loss carryforwards | $6,100,000 | $6,100,000 |
INCOME_TAXES_Details_4
INCOME TAXES (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Activity related to unrecognized tax benefits | |||
Gross unrecognized tax benefits at the beginning of the period | $14,050,000 | $10,336,000 | $6,952,000 |
Increase in uncertain tax positions | 1,675,000 | 4,137,000 | 3,384,000 |
Lapse in statute of limitations | -226,000 | ||
Settlements | -423,000 | ||
Gross unrecognized tax benefits at the end of the period | 15,499,000 | 14,050,000 | 10,336,000 |
Interest and penalties accrued | 1,000,000 | 400,000 | 500,000 |
Unrecognized tax benefits that would affect the effective tax rate if recognized | $16,500,000 |
RETIREMENT_PLANS_Details
RETIREMENT PLANS (Details) (Pension plans for GT&T employees, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Retirement plans | |||
Employment period or credited service period for which participants' average salary or hourly wages is used as a base to calculate benefits | 3 years | ||
Weighted-average rates assumed in the actuarial calculations for the pension plan | |||
Discount rate (as a percent) | 5.75% | 5.75% | 6.00% |
Annual salary increase (as a percent) | 6.50% | 7.50% | 7.50% |
Expected long-term return on plan assets (as a percent) | 7.00% | 7.00% | 8.00% |
Projected benefit obligations: | |||
Balance at beginning of year | $12,237,000 | $11,660,000 | |
Service cost | 612,000 | 543,000 | 612,000 |
Interest cost | 720,000 | 665,000 | 810,000 |
Benefits and settlements paid | -623,000 | -1,444,000 | |
Actuarial (loss) gain | 1,129,000 | 1,127,000 | |
Exchange rate adjustment | 18,000 | -314,000 | |
Balance at end of year | 14,093,000 | 12,237,000 | 11,660,000 |
Plan net assets: | |||
Balance at beginning of year | 12,673,000 | 12,932,000 | |
Actual return on plan assets | 267,000 | 657,000 | |
Company contributions | 832,000 | 854,000 | |
Benefits and settlements paid | -623,000 | -1,444,000 | |
Exchange rate adjustment | 16,000 | -326,000 | |
Balance at end of year | 13,165,000 | 12,673,000 | 12,932,000 |
Funded status of plan | |||
Over (under) funded status of plan | -928,000 | 436,000 | |
Pension plan assets | |||
Fair value of plan assets | 13,165,000 | 12,673,000 | 12,932,000 |
Weighted-average asset allocations (as a percent) | 100.00% | 100.00% | |
Amounts recognized on the consolidated balance sheets | |||
Other assets | 436,000 | ||
Other Liabilities | 928,000 | ||
Accumulated other comprehensive loss, net of tax | -2,672,000 | -1,949,000 | |
Amounts recognized in accumulated other comprehensive loss | |||
Net actuarial loss | -3,148,000 | -2,154,000 | |
Accumulated Other Comprehensive Income (Loss), before Tax, Total | -3,148,000 | -2,154,000 | |
Accumulated other comprehensive loss, net of tax | -2,672,000 | -1,949,000 | |
Components of the plan's net periodic pension cost | |||
Service cost | 612,000 | 543,000 | 612,000 |
Interest cost | 720,000 | 665,000 | 810,000 |
Expected return on plan assets | -848,000 | -949,000 | -972,000 |
Amortization of unrecognized net actuarial loss | 218,000 | 150,000 | 242,000 |
Net periodic pension cost | 702,000 | 409,000 | 692,000 |
Additional disclosure | |||
Expected contribution in 2015 | 543,000 | ||
Estimated Pension Benefits | |||
2015 | 565,000 | ||
2016 | 629,000 | ||
2017 | 634,000 | ||
2018 | 761,000 | ||
2019 | 677,000 | ||
2020-2024 | 4,865,000 | ||
Total | 8,131,000 | ||
Minimum | |||
Funded status of plan | |||
Percentage of plan assets to be invested within Guyana | 70.00% | ||
Maximum | |||
Funded status of plan | |||
Percentage of plan assets to be invested within Guyana | 80.00% | ||
Level 1 | |||
Plan net assets: | |||
Balance at end of year | 12,417,000 | ||
Pension plan assets | |||
Fair value of plan assets | 12,417,000 | ||
Level 2 | |||
Plan net assets: | |||
Balance at end of year | 748,000 | ||
Pension plan assets | |||
Fair value of plan assets | 748,000 | ||
Cash, cash equivalents, money markets and other | |||
Plan net assets: | |||
Balance at end of year | 10,532,000 | ||
Pension plan assets | |||
Fair value of plan assets | 10,532,000 | ||
Weighted-average asset allocations (as a percent) | 80.00% | 77.00% | |
Cash, cash equivalents, money markets and other | Level 1 | |||
Plan net assets: | |||
Balance at end of year | 9,784,000 | ||
Pension plan assets | |||
Fair value of plan assets | 9,784,000 | ||
Cash, cash equivalents, money markets and other | Level 2 | |||
Plan net assets: | |||
Balance at end of year | 748,000 | ||
Pension plan assets | |||
Fair value of plan assets | 748,000 | ||
Equity securities | |||
Plan net assets: | |||
Balance at end of year | 1,711,000 | ||
Pension plan assets | |||
Fair value of plan assets | 1,711,000 | ||
Weighted-average asset allocations (as a percent) | 13.00% | 11.10% | |
Equity securities | Level 1 | |||
Plan net assets: | |||
Balance at end of year | 1,711,000 | ||
Pension plan assets | |||
Fair value of plan assets | 1,711,000 | ||
Fixed income securities | |||
Plan net assets: | |||
Balance at end of year | 922,000 | ||
Pension plan assets | |||
Fair value of plan assets | 922,000 | ||
Weighted-average asset allocations (as a percent) | 7.00% | 11.90% | |
Fixed income securities | Level 1 | |||
Plan net assets: | |||
Balance at end of year | 922,000 | ||
Pension plan assets | |||
Fair value of plan assets | $922,000 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2014 | Jun. 17, 2013 | Dec. 31, 2014 | Dec. 19, 2014 | Nov. 14, 2013 | Jun. 17, 2013 | Dec. 19, 2014 | Nov. 14, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 17, 2013 | Nov. 30, 2007 | Dec. 31, 2014 | Feb. 17, 2010 | Feb. 17, 2010 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | AWG | Contingency related to spectrum fees | Letter of credit sub-facility | Letter of credit sub-facility | Letter of credit sub-facility | Letter of credit sub-facility | Alltel Mobility Funds | Alltel Mobility Funds | Alltel Mobility Funds | Universal Service Administrative Company | Universal Service Administrative Company | Universal Service Administrative Company | Universal Service Administrative Company | Lawsuit filed by CTL | Litigation proceedings and disputes in Guyana | Lawsuit filed by GT&T against Digicel | Lawsuit filed by GT&T against Digicel | Legal claims regarding tax filings with the Guyana Revenue Authority | Legal claims regarding tax filings with the Guyana Revenue Authority | |
USD ($) | USD ($) | Amended Credit Facility | Amended Credit Facility | Amended Credit Facility | Letter of credit sub-facility | Letter of credit sub-facility | Letter of credit sub-facility | Letter of credit sub-facility | Letter of credit sub-facility | Letter of credit sub-facility | Letter of credit sub-facility | Minimum | USD ($) | Minimum | USD ($) | Minimum | ||||
USD ($) | USD ($) | USD ($) | Amended Credit Facility | Amended Credit Facility | USD ($) | USD ($) | Amended Credit Facility | Amended Credit Facility | USD ($) | USD ($) | ||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Maximum borrowing capacity | $55 | $10 | $25 | |||||||||||||||||
Amount of pending awards of mobility fund grants | 68.8 | |||||||||||||||||||
Termination of facility | 19.9 | 19.9 | ||||||||||||||||||
Letters of credit posted to USAC | 10.6 | 29.8 | 9.9 | 29.8 | ||||||||||||||||
Commitment fee (as a percent) | 1.75% | |||||||||||||||||||
Draw downs against issued letters of credit | 0 | |||||||||||||||||||
Period for which litigation proceedings and other disputes have not been the subject of discussions or other significant activity | 5 years | |||||||||||||||||||
Spectrum fees paid | 2.6 | |||||||||||||||||||
Damages asserted | 200 | |||||||||||||||||||
Actual damages | 9 | |||||||||||||||||||
Punitive damages | 5 | |||||||||||||||||||
Future payments related to disputed tax assessments | 33.2 | |||||||||||||||||||
Percentage of return on investment ensured by the government of Guyana | 15.00% | |||||||||||||||||||
Renewal fee of telecommunications license | $4 | 7.2 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
sqft | |||
COMMITMENTS AND CONTINGENCIES | |||
Area of lease (in square feet) | 2,300,000 | ||
Obligation for payments under leases | |||
2015 | $13,810,000 | ||
2016 | 13,047,000 | ||
2017 | 8,983,000 | ||
2018 | 6,372,000 | ||
2019 | 2,372,000 | ||
Thereafter | 5,319,000 | ||
Total obligations under operating leases | 49,903,000 | ||
Rent expense | |||
Rent expense | $15,000,000 | $12,700,000 | $13,700,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2014 | |
item | ||||
Related Party Transaction | ||||
Rent payments | $15,000,000 | $12,700,000 | $13,700,000 | |
Cornelius B. Prior Jr | Tropical Tower | ||||
Related Party Transaction | ||||
Ownership percentage | 90 | |||
Rent payments | $117,000 | |||
Initial Term | 5 years | |||
Number of additional renewal period | 2 | |||
Renewal period | 5 years | |||
Percentage of increase in rent | 5.00% |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
item | item | item | |||||||||
SEGMENT REPORTING | |||||||||||
Number of reportable segments | 5 | 4 | 4 | ||||||||
Revenue | |||||||||||
Revenue | $88,511 | $89,393 | $83,269 | $75,174 | $77,028 | $79,350 | $71,625 | $64,832 | $336,347 | $292,835 | $277,796 |
Depreciation and amortization | 51,234 | 48,737 | 50,587 | ||||||||
Non-cash stock-based compensation | 4,323 | 4,454 | 3,323 | ||||||||
Operating income (loss) | 19,563 | 28,158 | 21,607 | 16,248 | 16,063 | 20,038 | 15,906 | 12,078 | 85,576 | 64,085 | 56,638 |
Segment Assets | |||||||||||
Net fixed assets | 369,582 | 254,632 | 369,582 | 254,632 | |||||||
Goodwill | 45,077 | 45,077 | 45,077 | 45,077 | |||||||
Total assets | 925,030 | 859,719 | 925,030 | 859,719 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 58,300 | 69,316 | 42,154 | ||||||||
U.S. Wireless | |||||||||||
Revenue | |||||||||||
Revenue | 153,040 | 107,930 | 102,817 | ||||||||
International wireless | |||||||||||
Revenue | |||||||||||
Revenue | 88,650 | 91,432 | 81,463 | ||||||||
Wireline | |||||||||||
Revenue | |||||||||||
Revenue | 85,284 | 84,585 | 85,524 | ||||||||
Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 9,373 | 8,888 | 7,992 | ||||||||
Reconciling Items | |||||||||||
Revenue | |||||||||||
Depreciation and amortization | 3,980 | 2,967 | 2,625 | ||||||||
Non-cash stock-based compensation | 4,323 | 3,805 | 3,323 | ||||||||
Operating income (loss) | -26,399 | -25,978 | -21,040 | ||||||||
Segment Assets | |||||||||||
Net fixed assets | 14,655 | 6,731 | 14,655 | 6,731 | |||||||
Total assets | 288,162 | 395,692 | 288,162 | 395,692 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 3,464 | 3,881 | 2,956 | ||||||||
Reconciling Items | Discontinued operations | |||||||||||
Segment Assets | |||||||||||
Total assets | 175 | 4,748 | 175 | 4,748 | |||||||
U.S. Wireless | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 154,592 | 109,005 | 103,768 | ||||||||
Depreciation and amortization | 14,345 | 14,308 | 16,072 | ||||||||
Operating income (loss) | 89,187 | 54,867 | 60,290 | ||||||||
Segment Assets | |||||||||||
Net fixed assets | 79,910 | 73,592 | 79,910 | 73,592 | |||||||
Goodwill | 32,148 | 32,148 | 32,148 | 32,148 | |||||||
Total assets | 188,377 | 146,346 | 188,377 | 146,346 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 33,446 | 34,895 | 9,792 | ||||||||
U.S. Wireless | Operating segments | U.S. Wireless | |||||||||||
Revenue | |||||||||||
Revenue | 153,040 | 107,930 | 102,817 | ||||||||
U.S. Wireless | Operating segments | Wireline | |||||||||||
Revenue | |||||||||||
Revenue | 609 | 610 | 603 | ||||||||
U.S. Wireless | Operating segments | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 943 | 465 | 348 | ||||||||
International Integrated Telephony | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 86,932 | 93,446 | 94,135 | ||||||||
Depreciation and amortization | 17,408 | 17,975 | 17,963 | ||||||||
Operating income (loss) | 19,628 | 28,212 | 23,203 | ||||||||
Segment Assets | |||||||||||
Net fixed assets | 108,972 | 118,917 | 108,972 | 118,917 | |||||||
Total assets | 201,335 | 197,903 | 201,335 | 197,903 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 10,646 | 12,452 | 14,369 | ||||||||
International Integrated Telephony | Operating segments | International wireless | |||||||||||
Revenue | |||||||||||
Revenue | 26,819 | 30,334 | 27,084 | ||||||||
International Integrated Telephony | Operating segments | Wireline | |||||||||||
Revenue | |||||||||||
Revenue | 59,129 | 61,475 | 65,313 | ||||||||
International Integrated Telephony | Operating segments | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 984 | 1,637 | 1,738 | ||||||||
Island Wireless | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 68,575 | 67,653 | 60,096 | ||||||||
Depreciation and amortization | 10,671 | 10,305 | 11,067 | ||||||||
Operating income (loss) | 9,046 | 8,610 | -3,334 | ||||||||
Segment Assets | |||||||||||
Net fixed assets | 26,590 | 29,310 | 26,590 | 29,310 | |||||||
Goodwill | 5,438 | 5,438 | 5,438 | 5,438 | |||||||
Total assets | 74,563 | 74,427 | 74,563 | 74,427 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 6,064 | 5,536 | 4,529 | ||||||||
Island Wireless | Operating segments | International wireless | |||||||||||
Revenue | |||||||||||
Revenue | 61,831 | 61,098 | 54,379 | ||||||||
Island Wireless | Operating segments | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 6,744 | 6,555 | 5,717 | ||||||||
U.S. Wireline | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 25,799 | 22,731 | 19,797 | ||||||||
Depreciation and amortization | 4,725 | 3,182 | 2,860 | ||||||||
Operating income (loss) | -3,668 | -1,076 | -2,481 | ||||||||
Segment Assets | |||||||||||
Net fixed assets | 28,113 | 26,082 | 28,113 | 26,082 | |||||||
Goodwill | 7,491 | 7,491 | 7,491 | 7,491 | |||||||
Total assets | 42,446 | 45,351 | 42,446 | 45,351 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 4,680 | 12,552 | 10,508 | ||||||||
U.S. Wireline | Operating segments | Wireline | |||||||||||
Revenue | |||||||||||
Revenue | 25,546 | 22,500 | 19,608 | ||||||||
U.S. Wireline | Operating segments | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 253 | 231 | 189 | ||||||||
Energy | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 449 | ||||||||||
Depreciation and amortization | 105 | ||||||||||
Operating income (loss) | -2,218 | ||||||||||
Segment Assets | |||||||||||
Net fixed assets | 111,342 | 111,342 | |||||||||
Total assets | 130,124 | 130,124 | |||||||||
Energy | Operating segments | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | $449 |
QUARTERLY_FINANCIAL_DATA_UNAUD2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly financial data | |||||||||||
Total revenue | $88,511 | $89,393 | $83,269 | $75,174 | $77,028 | $79,350 | $71,625 | $64,832 | $336,347 | $292,835 | $277,796 |
Operating expenses | 68,948 | 61,235 | 61,662 | 58,926 | 60,965 | 59,312 | 55,719 | 52,754 | 250,771 | 228,750 | 221,158 |
Income from operations | 19,563 | 28,158 | 21,607 | 16,248 | 16,063 | 20,038 | 15,906 | 12,078 | 85,576 | 64,085 | 56,638 |
Other income (expense), net | 509 | 325 | 53 | -295 | 386 | -13,042 | -2,707 | -2,249 | 592 | -17,612 | -11,842 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 20,072 | 28,483 | 21,660 | 15,953 | 16,449 | 6,996 | 13,199 | 9,829 | 86,168 | 46,473 | 44,796 |
Income tax | 5,689 | 9,569 | 7,338 | 5,552 | -1,758 | 2,481 | 4,868 | 3,945 | 28,148 | 9,536 | 20,831 |
INCOME FROM CONTINUING OPERATIONS | 14,383 | 18,914 | 14,322 | 10,401 | 18,207 | 4,515 | 8,331 | 5,884 | 58,020 | 36,937 | 23,965 |
Income from discontinued operations: | |||||||||||
Income from discontinued operations, net of tax | -1,960 | 3,092 | 4,034 | 5,166 | 29,202 | ||||||
Gain on sale of discontinued operations, net of tax | 1,102 | 1,905 | 305,197 | 1,102 | 307,102 | ||||||
Income from discontinued operations, net of tax | 1,102 | 1,905 | 303,237 | 3,092 | 4,034 | 1,102 | 312,268 | 29,202 | |||
NET INCOME | 15,485 | 18,914 | 14,322 | 10,401 | 20,112 | 307,752 | 11,423 | 9,918 | 59,122 | 349,205 | 53,167 |
Net income attributable to non-controlling interests, net of tax: | |||||||||||
Continuing operations | -2,854 | -2,747 | -2,809 | -2,560 | -2,055 | -2,945 | -1,934 | -1,055 | -10,970 | -7,989 | -3,145 |
Discontinued operations | 116 | -630 | -87 | -601 | -1,090 | ||||||
Disposal of discontinued operations | -200 | -28,699 | -28,899 | ||||||||
Net income attributable to non-controlling interests, net of tax | -2,854 | -2,747 | -2,809 | -2,560 | -2,255 | -31,528 | -2,564 | -1,142 | -10,970 | -37,489 | -4,235 |
NET INCOME ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS | $12,631 | $16,167 | $11,513 | $7,841 | $17,857 | $276,224 | $8,859 | $8,776 | $48,152 | $311,716 | $48,932 |
NET INCOME PER WEIGHTED AVERAGE BASIC SHARE ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS: | |||||||||||
Continuing operations (in dollars per share) | $0.72 | $1.02 | $0.72 | $0.50 | $1.02 | $0.10 | $0.41 | $0.31 | $2.96 | $1.84 | $1.34 |
Discontinued operations: | |||||||||||
Discontinued operations (in dollars per share) | ($0.12) | $0.16 | $0.25 | $0.29 | $1.81 | ||||||
Gain on sale of discontinued operations (in dollars per share) | $0.07 | $0.15 | $17.57 | $0.07 | $17.72 | ||||||
Total discontinued operations (in dollars per share) | $0.07 | $0.15 | $17.45 | $0.16 | $0.25 | $0.07 | $18.01 | $1.81 | |||
Total (in dollars per share) | $0.79 | $1.02 | $0.72 | $0.50 | $1.17 | $17.55 | $0.57 | $0.56 | $3.03 | $19.85 | $3.15 |
NET INCOME PER WEIGHTED AVERAGE DILUTED SHARE ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS: | |||||||||||
Continued operations (in dollars per share) | $0.72 | $1.01 | $0.72 | $0.49 | $1.02 | $0.10 | $0.40 | $0.31 | $2.94 | $1.83 | $1.33 |
Discontinued operations: | |||||||||||
Discontinued operations (in dollars per share) | ($0.12) | $0.16 | $0.25 | $0.29 | $1.80 | ||||||
Gain on sale of discontinued operations (in dollars per share) | $0.07 | $0.14 | $17.45 | $0.07 | $17.59 | ||||||
Total discontinued operations (in dollars per share) | $0.07 | $0.14 | $17.33 | $0.16 | $0.25 | $0.07 | $17.88 | $1.80 | |||
Total (in dollars per share) | $0.79 | $1.01 | $0.72 | $0.49 | $1.16 | $17.43 | $0.56 | $0.56 | $3.01 | $19.71 | $3.13 |
SUBSEQUENT_EVENT_Details
SUBSEQUENT EVENT (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 |
SUBSEQUENT EVENT | ||||||
Gain (loss) on sale of assets | $1,102 | $1,905 | $305,197 | $1,102 | $307,102 | |
Subsequent event | Turks And Caicos Island Retail Wireless | Cable And Wireless Limited | ||||||
SUBSEQUENT EVENT | ||||||
Gain (loss) on sale of assets | $19,000 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | $25,317 | $24,692 | $24,375 |
Charged to Costs and Expenses | 2,978 | 2,806 | 2,322 |
Deductions | 3,189 | 2,181 | 2,005 |
Balance at End of Year | 25,106 | 25,317 | 24,692 |
Valuation allowance on foreign tax credit carryforwards | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 13,576 | 15,396 | 16,755 |
Deductions | 2,999 | 1,820 | 1,359 |
Balance at End of Year | 10,577 | 13,576 | 15,396 |
Valuation allowance on foreign net operating losses | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 1,610 | 898 | 560 |
Charged to Costs and Expenses | 712 | 338 | |
Deductions | 110 | ||
Balance at End of Year | 1,500 | 1,610 | 898 |
Valuation allowance on state net operating losses | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 1,126 | 494 | |
Charged to Costs and Expenses | 561 | 632 | 494 |
Balance at End of Year | 1,687 | 1,126 | 494 |
Allowance for doubtful accounts | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 9,005 | 7,904 | 7,060 |
Charged to Costs and Expenses | 2,417 | 1,462 | 1,490 |
Deductions | 80 | 361 | 646 |
Balance at End of Year | $11,342 | $9,005 | $7,904 |