Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | ATLANTIC TELE NETWORK INC /DE | ||
Entity Central Index Key | 879,585 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 748 | ||
Entity Common Stock, Shares Outstanding | 16,076,094 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 392,045 | $ 326,216 |
Restricted cash | 824 | 39,703 |
Accounts receivable, net of allowances of $11.3 million and $9.2 million, respectively | 39,020 | 52,873 |
Materials and supplies | 8,220 | 10,546 |
Deferred income taxes | 2,588 | |
Prepayments and other current assets | 28,383 | 19,273 |
Assets of discontinued operations | 175 | |
Total current assets | 468,492 | 451,374 |
Fixed Assets: | ||
Property, plant and equipment | 807,247 | 763,417 |
Less: accumulated depreciation | (433,744) | (393,835) |
Net fixed assets | 373,503 | 369,582 |
Telecommunication licenses, net | 43,468 | 44,090 |
Goodwill | 45,077 | 45,077 |
Trade name license, net | 417 | 417 |
Customer relationships, net | 1,081 | 1,496 |
Restricted cash | 5,477 | 5,475 |
Other assets | 7,489 | 7,519 |
Total assets | 945,004 | 925,030 |
Current Liabilities: | ||
Current portion of long-term debt | 6,284 | 6,083 |
Accounts payable and accrued liabilities | 44,137 | 61,737 |
Dividends payable | 5,142 | 4,631 |
Accrued taxes | 9,181 | 5,667 |
Advance payments and deposits | 9,459 | 7,898 |
Deferred income taxes | 213 | |
Other current liabilities | 10,152 | 16,593 |
Liabilities of discontinued operations | 1,247 | |
Total current liabilities | 84,355 | 104,069 |
Deferred income taxes | 45,406 | 30,366 |
Other long -term liabilities | 26,944 | 19,619 |
Long-term debt, excluding current portion | 26,575 | 32,794 |
Total liabilities | $ 183,280 | $ 186,848 |
Commitments and contingencies (Note 15) | ||
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; 16,647,334 and 16,828,576 shares issued, respectively, and 15,925,748 and 16,068,295 shares outstanding, respectively | $ 168 | $ 166 |
Treasury stock, at cost; 721,586 and 760,840 shares, respectively | (18,254) | (15,549) |
Additional paid-in capital | 154,768 | 145,563 |
Retained earnings | 547,321 | 549,963 |
Accumulated other comprehensive loss | (3,704) | (2,921) |
Total Atlantic Tele-Network, Inc. stockholders' equity | 680,299 | 677,222 |
Non-controlling interests | 81,425 | 60,960 |
Total equity | 761,724 | 738,182 |
Total liabilities and equity | $ 945,004 | $ 925,030 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowances (in dollars) | $ 9,294 | $ 11,344 |
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 | 16,828,576 | 16,647,334 |
Common stock, shares outstanding | 16,067,736 | 15,925,748 |
Treasury stock, shares | 760,840 | 721,586 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUE: | |||
Total revenue | $ 355,369 | $ 336,347 | $ 292,835 |
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | |||
Termination and access fees | 81,928 | 77,888 | 70,159 |
Engineering and operations | 37,244 | 30,954 | 27,913 |
Sales and marketing | 21,466 | 21,664 | 18,226 |
Equipment expense | 14,997 | 13,338 | 13,013 |
General and administrative | 59,890 | 52,734 | 49,066 |
Transaction-related charges | 7,182 | 2,959 | 2,712 |
Depreciation and amortization | 56,890 | 51,234 | 48,737 |
Gain on disposition of long-lived assets | (2,823) | (1,076) | |
Total operating expenses | 276,774 | 250,771 | 228,750 |
Income from operations | 78,595 | 85,576 | 64,085 |
OTHER INCOME (EXPENSE): | |||
Interest income | 588 | 788 | 852 |
Interest expense | (3,180) | (1,208) | (12,785) |
Loss on interest rate derivative contracts | (5,408) | ||
Loss on deconsolidation of subsidiary | (19,937) | ||
Other income, net | 135 | 1,012 | (271) |
Other income (expense), net | (22,394) | 592 | (17,612) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 56,201 | 86,168 | 46,473 |
Income taxes | 24,137 | 28,148 | 9,536 |
INCOME FROM CONTINUING OPERATIONS | 32,064 | 58,020 | 36,937 |
Gain on sale of discontinued operations, net of tax | 1,092 | 1,102 | 307,102 |
Income from discontinued operations, net of tax | 1,092 | 1,102 | 312,268 |
NET INCOME | 33,156 | 59,122 | 349,205 |
Net loss attributable to non-controlling interests, net of tax: | |||
Continuing operations | (16,216) | (10,970) | (7,989) |
Discontinued operations | (601) | ||
Disposal of discontinued operations | (28,899) | ||
Net income attributable to non-controlling interests, net of tax | (16,216) | (10,970) | (37,489) |
NET INCOME (LOSS) ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS | $ 16,940 | $ 48,152 | $ 311,716 |
NET INCOME PER WEIGHTED AVERAGE BASIC SHARE ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS: | |||
Continuing operations (in dollars per share) | $ 0.99 | $ 2.96 | $ 1.84 |
Discontinued operations (in dollars per share) | 0.29 | ||
Total (in dollars per share) | 1.06 | 3.03 | 19.85 |
Discontinued operations: | |||
Gain on sale of discontinued operations (in dollars per share) | 0.07 | 0.07 | 17.72 |
Total discontinued operations (in dollars per share) | 0.07 | 0.07 | 18.01 |
NET INCOME PER WEIGHTED AVERAGE DILUTED SHARE ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS: | |||
Continuing operations (in dollars per share) | 0.98 | 2.94 | 1.83 |
Discontinued operations (in dollars per share) | 0.29 | ||
Total (in dollars per share) | 1.05 | 3.01 | 19.71 |
Discontinued operations: | |||
Gain on sale of discontinued operations (in dollars per share) | 0.07 | 0.07 | 17.59 |
Total discontinued operations (in dollars per share) | $ 0.07 | $ 0.07 | $ 17.88 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||
Basic (in shares) | 16,022 | 15,898 | 15,704 |
Diluted (in shares) | 16,142 | 16,013 | 15,817 |
DIVIDENDS PER SHARE APPLICABLE TO COMMON STOCK (in dollars per share) | $ 1.22 | $ 1.12 | $ 1.04 |
U.S. Wireless | |||
REVENUE: | |||
Total revenue | $ 155,390 | $ 153,040 | $ 107,930 |
International wireless | |||
REVENUE: | |||
Total revenue | 81,652 | 88,650 | 91,432 |
Wireline | |||
REVENUE: | |||
Total revenue | 86,485 | 85,284 | 84,585 |
Renewable energy | |||
REVENUE: | |||
Total revenue | 21,040 | ||
Equipment and other | |||
REVENUE: | |||
Total revenue | $ 10,802 | $ 9,373 | $ 8,888 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income (loss) | $ 33,156 | $ 59,122 | $ 349,205 |
Other comprehensive income: | |||
Foreign currency translation adjustment | 26 | 4 | (259) |
Projected pension benefit obligation, net of tax expense (benefit) of $0.2 million, $0.6 million and $0.7 million | (809) | (724) | (631) |
Unrealized gain on interest rate swap, net of tax expense (benefit) of $(3.6) million | 6,985 | ||
Other comprehensive income (loss), net of tax | (783) | (720) | 6,095 |
Total comprehensive income | 32,373 | 58,402 | 355,300 |
Less: Comprehensive income attributable to non-controlling interests | (16,216) | (10,970) | (37,489) |
Comprehensive income attributable to Atlantic Tele-Network, Inc. | $ 16,157 | $ 47,432 | $ 317,811 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Projected pension benefit obligation, tax expense (benefit) | $ 0.7 | $ 0.6 | $ 0.2 |
Unrealized gain on interest rate swap, tax expense (benefit) | $ (3.6) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | 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 |
Equity, beginning 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 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 treasury stock | (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 | |||||
Non-controlling interest in equity acquired | 407 | 407 | ||||||
Investments made by minority shareholders | (13,633) | (13,633) | ||||||
Comprehensive income: | ||||||||
Net income | 311,716 | 311,716 | 37,489 | 349,205 | ||||
Other comprehensive income (loss), 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 | |||||
Total 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 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 treasury stock | (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 | 512 | 513 | |||||
Investments made by minority shareholders | 9,796 | 9,796 | ||||||
Comprehensive income: | ||||||||
Net income | 48,152 | 48,152 | 10,970 | 59,122 | ||||
Other comprehensive income (loss), net of tax expense (benefit) of $641, $2,316, and $1,315 for the years ended December 31, 2014, 2013 and 2012, respectively | (720) | (719) | (720) | |||||
Total 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 |
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 | 1 | 1 | 1 | |||||
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 | 2,809 | 1 | 2,808 | 2,809 | ||||
Purchase of treasury stock | (2,705) | (2,705) | (2,705) | |||||
Stock-based compensation | 4,974 | 4,974 | 4,974 | |||||
Dividends declared on common stock | (19,582) | (19,582) | (16,715) | (36,297) | ||||
Excess tax benefits from share-based compensation | 1,423 | 1,423 | 1,423 | |||||
Investments made by minority shareholders | 951 | 951 | ||||||
Deconsolidation of subsidiary | 20,013 | 20,013 | ||||||
Comprehensive income: | ||||||||
Net income | 16,940 | 16,940 | 16,216 | 33,156 | ||||
Other comprehensive income (loss), net of tax expense (benefit) of $641, $2,316, and $1,315 for the years ended December 31, 2014, 2013 and 2012, respectively | (783) | (783) | (783) | |||||
Total comprehensive income | 16,157 | 16,216 | 32,373 | |||||
Equity, end of period at Dec. 31, 2015 | $ 680,299 | $ 168 | $ (18,254) | $ 154,768 | $ 547,321 | $ (3,704) | $ 81,425 | $ 761,724 |
CONSOLIDATED STATEMENTS OF EQU8
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF EQUITY | |||
Issuance of restricted shares of common stock | 93,864 | 109,318 | 100,902 |
Issuance of shares of common stock upon exercise of stock options | 87,378 | 43,034 | 303,536 |
Purchase of shares of common stock | 37,567 | 34,293 | 163,222 |
Other comprehensive income before reclassifications, tax | $ 717 | $ 641 | $ 2,316 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 33,156 | $ 59,122 | $ 349,205 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Depreciation and amortization | 56,890 | 51,234 | 48,737 |
Provision for doubtful accounts | 1,199 | 1,676 | 1,163 |
Amortization of debt discount and debt issuance costs | 458 | 114 | 6,681 |
Stock-based compensation | 4,975 | 4,323 | 4,454 |
Loss on interest rate derivative contracts | 5,408 | ||
Deferred income taxes | 17,869 | (113) | (4,849) |
Income from discontinued operations, net of tax | (5,166) | ||
Gain on disposition of long-lived assets | (2,823) | (1,076) | |
Gain on sale of discontinued operations | (1,092) | (1,102) | (307,102) |
Loss on deconsolidation of subsidiary | 19,937 | ||
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||
Accounts receivable, net | 11,744 | (15,264) | 2,233 |
Materials and supplies, prepayments, and other current assets | (1,094) | (4,817) | (17,117) |
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities | (2,385) | 7,629 | 10,472 |
Accrued taxes | 9,740 | (15,650) | (242,696) |
Other | (9,494) | (1,833) | 4,006 |
Income tax receivable | (2,620) | 14,251 | |
Net cash provided by (used in) operating activities of continuing operations | 139,080 | 82,699 | (131,396) |
Net cash provided by (used in) operating activities of discontinued operations | 158 | (4,719) | 19,394 |
Net cash provided by (used in) operating activities | 139,238 | 77,980 | (112,002) |
Cash flows from investing activities: | |||
Capital expenditures | (64,753) | (58,300) | (69,316) |
Acquisition of business | (11,968) | (50,361) | |
Restricted cash acquired from acquisition of businesses | (5,884) | ||
Net proceeds from sale of assets | 1,371 | ||
Change in restricted cash | 38,877 | 38,707 | |
Proceeds from disposition of long-lived assets | 5,873 | 1,500 | |
Net cash used in investing activities of continuing operations | (31,971) | (74,467) | (67,816) |
Net cash used in investing activities of discontinued operations, net | 710,934 | ||
Net cash provided by (used in) investing activities | (31,971) | (74,467) | 643,118 |
Cash flows from financing activities: | |||
Dividends paid on common stock | (19,070) | (17,488) | (12,096) |
Distribution to minority stockholders | (16,514) | (16,331) | (26,155) |
Payment of debt issuance costs | (892) | (1,945) | (12) |
Proceeds from stock option exercises | 1,998 | 1,129 | 2,669 |
Principal repayments of term loan | (6,017) | (272,137) | |
Purchase of common stock | (1,893) | (1,665) | (1,473) |
Investments made by minority shareholders in consolidated affiliates | 950 | 2,500 | 408 |
Repurchase of non-controlling interests | (104) | ||
Net cash provided by financing activities of continuing operations | (41,438) | (33,904) | (308,796) |
Net cash provided by financing activities of discontinued operations, net | (1,678) | ||
Net cash used in financing activities | (41,438) | (33,904) | (310,474) |
Effect of foreign currency exchange rates on cash and cash equivalents | (682) | ||
Net change in cash and cash equivalents | 65,829 | (30,391) | 219,960 |
Cash and cash equivalents, beginning of period | 326,216 | 356,607 | 136,647 |
Cash and cash equivalents, end of period | 392,045 | 326,216 | 356,607 |
Supplemental cash flow information: | |||
Interest paid | 2,724 | 2,930 | 4,857 |
Taxes paid | 9,636 | 48,349 | 256,819 |
Dividends declared, not paid | $ 5,141 | $ 4,618 | $ 4,285 |
ORGANIZATION AND BUSINESS OPERA
ORGANIZATION AND BUSINESS OPERATIONS | 12 Months Ended |
Dec. 31, 2015 | |
ORGANIZATION AND BUSINESS OPERATIONS | |
ORGANIZATION AND BUSINESS OPERATIONS | 1. ORGANIZATION AND BUSINESS OPERATION S 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 Bermuda, Guyana, 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 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, 2015: Services Segment Markets Tradenames Wireless U.S. Wireless United States (rural markets) Commnet, Choice Island Wireless Aruba, Bermuda, U.S. Virgin Islands Mio, CellOne, Islandcom (through March 23, 2015), 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 17 to the Consolidated Financial Statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
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. Certain reclassifications have been made in the prior period financial statements to conform the Company’s consolidated income statements to how management analyzes its operations in the current period. These changes did not impact operating income. For the year ended December 31, 2013 the aggregate impact of the changes included an increase to termination and access fees of $14.4 million, a decrease to engineering and operations expenses of $11.0 million, an increase to sales and marketing expenses of $0.5 million, an increase to equipment expense of $0.1 million, and a decrease to general and administrative expenses of $4.0 million. For the year ended December 31, 2014 the aggregate impact of the changes included an increase to termination and access fees of $13.7 million, a decrease to engineering and operations expenses of $9.3 million, an increase to sales and marketing expenses of $0.7 million and a decrease to general and administrative expenses of $5.1 million. 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. During the years ended December 31, 2014 and 2015, the Company recorded additional gains of $1.1 million relating to changes in certain estimates. 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, 2015, the Company had deposits with banks in excess of FDIC insured limits and $50.7 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 9). As of December 31, 2014 and 2015, the Company held $1.8 million and $3.8 million, respectively, of its cash in Guyana 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. Restricted Cash Substantially all of the Company’s restricted cash balances were acquired as a part of the acquisition of Ahana Renewables as described in Note 3. The restricted cash is held in escrow and serves as collateral for Ahana Renewables’ debt in order to meet future debt service obligations and other operating obligations of the solar facilities. 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 $2.7 million and $3.0 million as of December 31, 2014 and 2015, 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 ended December 31, 2015. 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, 2014 and 2015, 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 8 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 sheet 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): Projected Pension Benefit Translation Obligation Adjustment Total Balance at December 31, 2013 $ $ $ Adjust funded status of pension plan, net of tax of $0.6 million — Foreign currency translation adjustment — Balance at December 31, 2014 Adjust funded status of pension plan, net of tax of $0.7 million — Foreign currency translation adjustment — Balance at December 31, 2015 $ $ $ 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 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, 2015, the Company has spent $99.3 million in capital expenditures of which $73.9 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, 2014 and December 31, 2015 the Company received approximately $3.9 million and $7.9 million, respectively, from the Universal Service Fund programs. Of these amounts, $ 1.3 million for the years ended December 31, 2014 and December 31, 2015 were to support our U.S. Wireless business relating to high ‑cost areas. Funding received from the Mobility Fund, as further described in Note 11, 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. As of December 31, 2014, the Company had deferred taxes that were classified as current and noncurrent assets and liabilities. The Company elected to prospectively adopt ASU 2015-17 as of December 31, 2015, thus reclassifying $3.9 million of current deferred tax assets and $0.2 million of current deferred tax liabilities to noncurrent on the accompanying consolidated December 31, 2015 balance sheet. The prior reporting period was not retrospectively adjusted. The adoption of this guidance had no impact on the Company’s consolidated results of income and comprehensive income. 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 2013 2014 2015 Verizon % % % AT&T % % % 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, 2014 and 2015: Customer 2014 2015 AT&T % % Verizon % % Foreign Currency Gains and Losses With regard to the Company’s Guyana operations, for which the Guyana 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. Beginning in 2013, the value of the Guyana Dollar increased from approximately G$205 to one U.S. Dollar 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, 2015 the exchange rate remained at 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, 2014 and 2015 are summarized as follows: December 31, 2014 Significant Other Quoted Prices in Observable Active Markets Inputs Description (Level 1) (Level 2) Total Certificates of deposit $ — $ $ Money market funds $ $ — $ Total assets measured at fair value $ $ $ December 31, 2015 Significant Other Quoted Prices in Observable Active Markets Inputs Description (Level 1) (Level 2) Total Certificates of deposit $ — $ $ Money market funds $ $ — $ Total assets measured at fair value $ $ $ Certificate of Deposit As of December 31, 2014 and December 31, 2015, 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, 2014 and December 31, 2015, 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 is 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. As a result of the repayment of its variable rate debt on September 20, 2013, the Company terminated its interest rate derivatives. Other Fair Value Disclosures The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate their fair values because of the relatively short-term maturities of these financial instruments. The fair value of long-term debt is estimated using Level 2 inputs. At December 31, 2015, the fair value of long-term debt, including the current portion, was equal to its carrying amount of $32,860 . At December 31, 2014, the fair value of the long-term debt, including the current portion, was equal to its carrying amount of $38,877 . Net Income Per Share Basic net income per share is computed by dividing net income attributable to the Company’s sto |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2015 | |
ACQUISITIONS | |
ACQUISITIONS | 3. ACQUISITIONS Pending Acquisitions Caribbean Asset Holdings LLC On September 30, 2015, the Company entered into an agreement to acquire all of the membership interests of Caribbean Asset Holdings LLC, the holding company for the Innovative group of companies operating cable TV, Internet and landline services primarily in the U.S. Virgin Islands (“Innovative”), from the National Rural Utilities Cooperative Finance Corporation (“CFC”). The Company will purchase the Innovative operations for a purchase price of approximately $145 million, subject to certain purchase price adjustments (the “Innovative Transaction”). In connection with the purchase, we have the option to finance up to $60 million of the purchase price with a loan from an affiliate of CFC, the Rural Telephone Finance Cooperative (“RTFC”) on the terms and conditions set forth in a commitment letter and rate lock option letter executed by RTFC filed herewith as Exhibits 99.1 and 99.2, respectively. We expect to fund the remaining $85.0 million of the purchase price, plus any amounts not financed, in cash. With the purchase, the Company’s current operations in the U.S. Virgin Islands under the “Choice” name will be combined with Innovative to deliver residential and business subscribers a full range of telecommunications and media services. The Innovative Transaction is subject to customary closing terms and conditions and the receipt of approvals from the Federal Communications Commission and regulatory authorities in the U.S. and British Virgin Islands and St. Maarten. The Company currently expects to complete the proposed transaction in mid-2016. KeyTech Limited On October 5, 2015, the Company entered into an agreement with KeyTech Limited (“KeyTech”), a publicly held Bermuda company listed on the Bermuda Stock Exchange (“BSX”) that provides broadband and cable television services and other telecommunications services to residential and enterprise customers under the “Logic” name in Bermuda and the Cayman Islands, in which the Company will acquire a controlling interest in KeyTech as part of a proposed business combination of KeyTech with the Company’s subsidiary providing wireless services under the “CellOne” name in Bermuda. As part of the proposed transaction, the Company will contribute its current ownership interest of approximately 43% in CellOne and approximately $42 million in cash in exchange for a 51% ownership interest in KeyTech. On a combined basis, the Company and KeyTech currently own approximately 85% of CellOne. As part of the proposed transaction, CellOne will be merged with and into a company within the KeyTech group and the approximate 15% interest in CellOne held, in the aggregate, by CellOne’s minority shareholders will be converted into the right to receive common shares in KeyTech. Following the transaction, CellOne will be indirectly wholly owned by KeyTech and KeyTech will continue to be listed on the BSX. A portion of the cash proceeds that KeyTech will receive upon closing will be used to fund a one-time special dividend to KeyTech's existing shareholders and to retire KeyTech's subordinated debt. The Company currently consolidates the operations of CellOne and, upon closing of the proposed transaction, will consolidate the results of KeyTech, in its financial statements. The proposed transaction is subject to customary closing terms and conditions, including, among others, the receipt of approval from the Bermuda Regulatory Authority, the Federal Communications Commission, and the Information and Communications Technology Authority of the Cayman Islands and the consent of the Bermuda Stock Exchange to certain transaction matters. KeyTech shareholders approved the proposed transaction by affirmative vote on October 20, 2015. The Company is working towards completing the proposed transaction by the end of the first quarter 2016. Completed Acquisition 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 $66.3 million of cash consideration a $12.5 million reimbursement of cash and restricted cash held by Green Lake on the date of acquisition 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 who maintains a non-controlling interest in these subsidiaries. The tax equity investor’s interest in these subsidiaries changes at 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. These dates typically occur at approximately 2 - 4 years from the Ahana Acquisition date. The profits and losses of these subsidiaries will be allocated to the tax equity investors and to the Company using the Hypothetical Liquidation Book Value method. The Hypothetical Liquidation Book Value Method is used to calculate the non-controlling interests' share of income for each period by measuring the difference in funds that would flow to the non-controlling interests in a hypothetical liquidation event at the beginning of the period compared to the end of a period (adjusted for capital distributions). The method assumes that the proceeds on liquidation approximate book value and then the proceeds are allocated to the Company and non-controlling interests based on the liquidation provisions of the solar facility operating agreement. A positive difference during the period represents non-controlling interests' share of income and a decrease represents a loss. Ahana Renewables has the option to buy-out the non-controlling interests. 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 17. 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 $ Purchase price allocation: Cash $ 6,571 Other current assets Property, plant and equipment Restricted cash Current liabilities Long-Term debt Non-controlling interests Net assets acquired $ 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 property, 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 forecasted production and the related sale of energy and solar renewable energy credits, forecasted 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 property, plant and equipment acquisition date fair value. For the years ended December 31, 2014 and 2015, the Ahana Acquisition accounted for $0.4 million and $21.0 million of the Company's revenue, respectively, and $2.5 million and $4.0 million of the Company's transaction-related charges pertaining to legal, accounting and consulting services. |
DISCONTINUED OPERATIONS - SALE
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS | 12 Months Ended |
Dec. 31, 2015 | |
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 $ Escrowed Working capital Adjusted proceeds Less: Net assets sold or impaired: Assets sold or impaired: Current assets Property, plant and equipment, net Telecommunications licenses Other intangible assets Other assets Liabilities sold: Current liabilities Other liabilities Net assets sold or impaired Less: Transaction related costs Pre-tax gain Less: Income taxes at effective rate Net gain on sale $ During 2014 and 2015, the Company recognized an additional $1.1 million 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 $39.0 million of the indemnity escrow as restricted cash within current assets in its consolidated balance sheet as of December 31, 2014. In March 2015, the $39.0 million indemnity escrow was released to the Company. 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, 2014 and 2015, $18.9 million, $5.8 million and $4.1 million, respectively, was distributed to minority shareholders. The Company has included $4.5 million and $0.4 million in non ‑controlling interests on its December 31, 2014 and 2015 balance sheets, 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, 2014 balance sheets. Revenues and income from discontinued operations related to the Alltel business for the years ended December 31, 2013 was as follows (in thousands): Year Ended December 31, 2013 Revenue from discontinued operations $ Income from discontinued operations, net of tax expense of $2,512 |
LOSS ON DECONSOLIDATION OF SUBS
LOSS ON DECONSOLIDATION OF SUBSIDIARY | 12 Months Ended |
Dec. 31, 2015 | |
LOSS ON DECONSOLIDATION OF SUBSIDIARY | |
LOSS ON DECONSOLIDATION OF SUBSIDIARY | 5. LOSS ON DECONSOLIDATION OF SUBSIDIARY During March 2015, the Company sold, to an unrelated party, certain assets and liabilities of its Turks and Caicos business in its Island Wireless segment. As a result, the Company recorded a loss of approximately $19.9 million arising from the deconsolidation of non-controlling interests of $20.0 million and a gain of $0.1 million arising from an excess of sales proceeds over the carrying value of net assets disposed of. The disposition is included within other income (expense) and does not relate to a strategic shift in the Company’s operations. As a result, the subsidiary’s historical results and financial position are presented within continuing operations. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2015 | |
ACCOUNTS RECEIVABLE: | |
ACCOUNTS RECEIVABLE: | 6. ACCOUNTS RECEIVABLE: As of December 31, 2014 and 2015, accounts receivable consist of the following (in thousands): 2014 2015 Retail $ $ Wholesale Other Accounts receivable Less: allowance for doubtful accounts Total accounts receivable, net $ $ |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
FIXED ASSETS: | |
FIXED ASSETS: | 7. FIXED ASSETS: As of December 31, 2014 and 2015, property, plant and equipment consisted of the following (in thousands): Useful Life (in Years) 2014 2015 Telecommunications equipment and towers 5 - 15 $ $ Solar assets 20 - 23 Office and computer equipment 3 - 10 Buildings 15 - 39 Transportation vehicles 3 - 10 Leasehold improvements Shorter of useful life or lease term Land — Furniture and fixtures 5 - 10 Total property, plant and equipment Construction in progress Total property, plant and equipment Less: Accumulated depreciation Net fixed assets $ Depreciation and amortization of fixed assets, using the straight ‑line method over the assets’ estimated useful life, for the years ended December 31, 2013, 2014 and 2015 was $48.3 million, $50.3 million and $55. 9 million, respectively. For the years ended December 31, 2013, 2014 and 2015, amounts of capital expenditures were offset by grants of $31.6 million, $2.3 million and $2.6 million, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 8. 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. During 2015, 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. In 2014, the Company performed a qualitative assessment for some of the Company’s reporting units and determined there were no indicators of impairment. For the other reporting units in 2014, goodwill was evaluate d 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, 2014 and December 31, 2015 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. 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 st 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. The Company performed a qualitative assessment for its annual impairment assessment of substantially all of its indefinite lived telecommunications licenses as of December 31, 2014 and 2015 and determined that there were no indications of potential impairments. The changes in the carrying amount of the Company’s telecommunications licenses, by operating segment, for the three years ended December 31, 2015 were as follows (in thousands): U.S. U.S. Island Wireless Wireline Wireless Consolidated Balance at December 31, 2013 $ $ $ $ Acquired licenses — — Amortization — — Balance at December 31, 2014 $ $ $ $ Amortization — — Balance at December 31, 2015 $ $ $ $ The licenses acquired during 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, 2015. Future amortization of customer relationships, in our Island Wireless segment, is as follows (in thousands): Future Amortization 2016 $ 2017 2018 2019 2020 Thereafter Total $ |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2015 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 9. LONG ‑TERM DEBT On September 20, 2013, the Company repaid, in full, all of its then outstanding term loans under its Credit Facility. The Company incurred nominal fees for the breakage of the term loans and recorded approximately $4.7 million in interest expense during the year ended December 31, 2013 related to the 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 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 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 its credit facility with CoBank, ACB and a syndicate of other lenders 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 Amended Credit Facility ) plus 0.50% per annum; and (iii) the prime rate (as defined in the Amended Credit Facility ). The applicable margin is determined based on the ratio (as further defined in the Amended Credit Facility) of the Company’s indebtedness to EBITDA. Under the terms of the Amended Credit Facility, 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 ratio 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, 2015, the Company was in compliance with all of the financial covenants of the Amended Credit Facility. As of December 31, 2015, 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 fixed at the time of the loan’s closing. As of December 31, 2015, $32.9 million of the Ahana Debt remained outstanding. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2015 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 10. 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 “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): Amount of Gain or Amount of Gain or (Loss) Reclassified (Loss) Recognized Location of Gain or from Accumulated in Other (Loss) Reclassified Other Comprehensive from Accumulated Comprehensive Income on Other Income into Derivative in Cash Flow Derivative Comprehensive Income Year ended December 31, Hedging Relationships (Effective Portion) Income into Income (Effective Portion) (Effective Portion) 2013 Interest Rate Swap $ Interest expense $ |
GOVERNMENT GRANTS
GOVERNMENT GRANTS | 12 Months Ended |
Dec. 31, 2015 | |
GOVERNMENT GRANTS | |
GOVERNMENT GRANTS | 11 . GOVERNMENT GRANTS The Company has received funding from the U.S. Government and its agencies under Stimulus and Universal Services Fund programs. These are generally designed to fund telecommunications infrastructure expansion into rural or underserved areas of the United States. The fund programs are evaluated to determine if they represent funding related to capital expenditures (capital grants) or operating activities (income grants). Stimulus Grants We were awarded several federal stimulus grants in 2009 and 2010 by the U.S. Government under provisions of the American Recovery and Reinvestment Act of 2009 intended to stimulate the deployment of broadband infrastructure and services to rural, unserved and underserved areas. As of December 31, 2015, we have spent (i) $35.8 million in capital expenditures (of which $27.5 million has been funded by the federal stimulus grant) in connection with our build of ten new segments of fiber-optic, middle-mile broadband infrastructure in upstate New York and parts of Pennsylvania and Vermont; (ii) $7.6 million in capital expenditures (of which $5.3 million has been funded by the federal stimulus grant) in connection with our last-mile broadband infrastructure buildout in the Navajo Nation across Arizona, New Mexico and Utah; and (iii) $47.9 million in capital expenditures (of which $33.0 million has been funded by the federal stimulus grant) in connection with our fiber-optic middle mile network buildout to provide broadband and transport services to over 340 community anchor institutions in Vermont. The results of our New York and Vermont stimulus projects are included in our “U.S. Wireline” segment and the results of our Navajo stimulus project are included in our “U.S. Wireless” segment. The New York and Navajo stimulus projects were completed during 2013. The Vermont stimulus project was completed during 2014. Mobility Fund 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 and October 2014, the Company received FCC final approvals for $21.7 million and $2.4 million, respectively, of Mobility Fund support to its wholesale wireless business (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 from award date. In connection with the Company’s application for the Mobility Funds, the Company has issued approximately $10.6 million in letters of credit to the Universal Service Administrative Company (“USAC”) 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. The Company began the construction of its Mobility Funds projects during the third quarter of 2013 and their results are included in the Company’s “U.S. Wireless” segment. As of December 31, 2015, the Company has received approximately $8.1 million in Mobility Funds. Of these funds, $1.0 million was recorded as an offset to operating expenses, $3.4 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 $4.6 million is recorded within other current liabilities while the remaining $0.1 million of future operating costs is recorded within other long-term liabilities in the Company’s consolidated balance sheet as of December 31, 2015. 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, 2015 | |
EQUITY | |
EQUITY | 12. EQUITY Common Stock The Company has paid quarterly dividends on its common stock since January 1999. Treasury Stock During the years ended December 31, 2013, 2014 and 2015, 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: Aggregate Shares Cost Average Year ended December 31, Repurchased (in thousands) Repurchase Price 2013 $ $ 2014 2015 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, 2014 and 2015: Year Ended December 31, 2014 Weighted Average Remaining Number of Weighted Avg. Contractual Aggregate Options Exercise Price Term (Years) Intrinsic Value Outstanding at January 1, 2014 $ Exercised Forfeited—Unvested Outstanding at December 31, 2014 $ Vested and expected to vest at December 31, 2014 $ Exercisable at December 31, 2014 $ Year Ended December 31, 2015 Weighted Average Weighted Avg. Remaining Number of Exercise Contractual Aggregate Options Price Term (Years) Intrinsic Value Outstanding at January 1, 2015 $ Granted Exercised Forfeited—Unvested — — Outstanding at December 31, 2015 $ Vested and expected to vest at December 31, 2015 $ Exercisable at December 31, 2015 $ The unvested options as of December 31, 2015 represent $0.2 million in unamortized stock ‑based compensation which will be recognized over a weighted average term of 2.61 years. The following table summarizes information relating to options granted and exercised during the years ended December 31, 2013, 2014 and 2015 (in thousands, except fair value of options granted data): 2013 2014 2015 Weighted-average fair value of options granted $ N/A $ N/A $ Aggregate intrinsic value of options exercised Cash proceeds received upon exercise of options Excess tax benefits from share-based compensation 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 Company did not grant any options during 2013 or 2014. The estimated fair value of the options granted during 2015 were determined using a Black Scholes option pricing model, based on the following weighted average assumptions: Options Granted in 2015 Risk-free interest rate % Expected dividend yield % Expected life years Expected volatility % The Company recognized $1.4 million, $0.9 million and $0.4 million, respectively, of stock compensation expense relating to the granted options during 2013, 2014 and 2015, respectively. Restricted Stock Restricted stock issued under the 2008 Equity Investment Plan vest ratably over four years. The following table summarizes restricted stock activity during the year ended December 31, 2014: Weighted Avg. Shares Fair Value Unvested as of January 1, 2014 $ Granted Forfeited Vested and issued Unvested as of December 31, 2014 $ The following table summarizes restricted stock activity during the year ended December 31, 2015: Weighted Avg. Shares Fair Value Unvested as of January 1, 2015 $ Granted Forfeited Vested and issued Unvested as of December 31, 2015 $ In connection with the grant of restricted shares, the Company recognized $3.1 million, $3.4 million and $4.3 million of compensation expense within its income statements for the years ended December 31, 2013, 2014 and 2015, respectively. The unvested shares as of December 31, 2015 represent $9.4 million in unamortized stock based compensation which will be recognized over a weighted average period of 2.6 years. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES | |
INCOME TAXES | 13. INCOME TAXES The components of income before income taxes for the years ended December 31, 2013, 2014 and 2015 are as follows (in thousands): 2013 2014 2015 Domestic $ $ $ Foreign Total $ $ $ 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, 2013, 2014, and 2015 (in thousands): 2013 2014 2015 Tax computed at statutory U.S. federal income tax rates $ $ $ Non-controlling interest Income taxes in excess (below) statutory U.S. tax rates: Guyana Bermuda and Turks & Caicos Turks & Caicos intercompany note receivable write-down — — Foreign tax reserve State taxes Change in valuation allowance Foreign tax credit expiration Other, net Income tax expense $ $ $ The components of income tax expense (benefit) for the years ended December 31, 2013, 2014 and 2015 are as follows (in thousands): \ 2013 2014 2015 Current: United States—Federal $ $ $ United States—State Foreign Total current income tax expense $ $ $ Deferred: United States—Federal $ $ $ United States—State Foreign Total deferred income tax expense (benefit) Consolidated: United States—Federal $ $ $ United States—State Foreign Total income tax expense $ $ $ The significant components of deferred tax assets and liabilities are as follows as of December 31, 2014 and 2015 (in thousands): 2014 2015 Deferred tax assets: Receivables reserve $ $ Temporary differences not currently deductible for tax Deferred compensation Foreign tax credit carryforwards Pension Net operating losses Valuation allowance Total deferred tax asset Deferred tax liabilities: Property, plant and equipment, net $ $ Intangible assets, net Tax on foreign earnings — Total deferred tax liabilities Net deferred tax liabilities $ $ Deferred tax assets and liabilities are reflected in the accompanying consolidated balance sheets as follows (in thousands): 2014 2015 Deferred tax assets: Current $ $ — Long term — — Total deferred tax asset $ $ — Deferred tax liabilities: Current $ $ — Long term Total deferred tax liabilities $ $ Net deferred tax liabilities $ $ As of December 31, 2015, the Company adopted ASU 2015-17 which requires deferred tax liabilities and assets to be classified as non- current in a classified balance sheet. As of December 31, 2015, the Company estimated that it had gross state and foreign net operating loss (“NOL”) carryforwards of $40.7 million and $ 8.6 million respectively. The state NOL’s will expire at various dates between 2016 and 2036. The foreign NOL consists of $ 5.5 million from Aruba, which will expire between 2016 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 by certain state and foreign reporting jurisdictions over the three -year period ended December 31, 2014. On the basis of this evaluation, the Company believed it was more likely than not that the benefit from these state and foreign NOL carryforwards would 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, 2015 our state and foreign NOL carryforward valuation allowance was $ 2.0 million and $1.7 million, respectively. As of December 31, 2014, the Company had $ 10.5 million of foreign tax credits. During the year ended December 31, 2015, $6.3 million of foreign tax credit carryforwards expired. The remaining amount will expire in 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 sufficient 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, 2015. The Company has approximately $ 156.9 million of undistributed earnings of its foreign subsidiaries that as of December 31, 2015 are considered to be indefinitely reinvested and accordingly, no U.S. federal or 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 (including interest and penalty) of $14.0 million as of December 31, 2013, $16.5 million as of December 31, 2014 and $ 18.9 million as of December 31, 2015. The net increase of the reserve during the year ended December 31, 2015 was attributable to additions to uncertain tax positions taken in the current and prior years. The following shows the activity related to unrecognized tax benefits during the three years ended December 31, 2015 (in thousands): Gross unrecognized tax benefits at December 31, 2012 Increase in uncertain tax positions Lapse in statute of limitations — Gross unrecognized tax benefits at December 31, 2013 Increase in uncertain tax positions Lapse in statute of limitations Settlements — Gross unrecognized uncertain tax benefits at December 31, 2014 Increase in uncertain tax positions Lapse in statute of limitations — Settlements — Gross unrecognized uncertain tax benefits at December 31, 2015 $ 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 $ 1.7 million as of December 31, 2015, and $1.0 million as of December 31, 2014, and $0.4 million as of December 31, 2013. All $ 18.9 million of unrecognized tax benefits (including interest and penalty) would affect the effective tax rate if recognized. 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 2011. 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 15 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, 2015 | |
RETIREMENT PLANS | |
RETIREMENT PLANS | 14. 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, 2013, 2014 and 2015: 2013 2014 2015 Discount rate % % % Annual salary increase % % % Expected long-term return on plan assets % % % 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 2014 and 2015 (in thousands): 2014 2015 Projected benefit obligations: Balance at beginning of year: $ $ Service cost Interest cost Benefits and settlements paid Actuarial gain Exchange rate adjustment - Balance at end of year $ $ Plan net assets: Balance at beginning of year: $ $ Actual return on plan assets Company contributions - Benefits and settlements paid Exchange rate adjustment - Balance at end of year $ $ Under funded status of plan $ $ 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, 2015 are as follows (in thousands): Asset Category Total Level 1 Level 2 Level 3 Cash, cash equivalents, money markets and other $ $ $ $ — Equity securities — — Fixed income securities — — Total $ $ $ $ — The plan’s weighted ‑average asset allocations at December 31, 2014 and 2015, by asset category are as follows: 2014 2015 Cash, cash equivalents, money markets and other % % Equity securities Fixed income securities Total % % Amounts recognized on the Company’s consolidated balance sheets consist of (in thousands): As of December 31, 2014 2015 Other Liabilities $ $ Accumulated other comprehensive loss, net of tax Amounts recognized in accumulated other comprehensive loss consist of (in thousands): 2014 2015 Net actuarial loss $ $ Accumulated other comprehensive loss, pre-tax $ $ Accumulated other comprehensive loss, net of tax $ $ Components of the plan’s net periodic pension cost are as follows for the years ended December 31, 2013, 2014 and 2015 (in thousands): 2013 2014 2015 Service cost $ $ $ Interest cost Expected return on plan assets Amortization of unrecognized net actuarial loss Net periodic pension cost $ $ $ For the year ended December 31, 2016, the Company expects to contribute approximately $586 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): Pension Fiscal Year Benefits 2016 $ 2017 2018 2019 2020 2021 - 2025 $ |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 15. 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 11 for further information about the Mobility Fund. 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. The letters of credit accrue a fee at a rate of 1.75% per annum on the outstanding amounts. 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. 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 $32.4 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. The Company believes that some adverse outcome is probable and has accordingly accrued $5.0 million as of December 31, 2015 for these matters 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 2.6 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, 2015 (in thousands): 2016 2017 2018 2019 2020 Thereafter Total obligations under operating leases $ Rent expense for the years ended December 31, 2013, 2014 and 2015 was $12.7 million, $15.0 million and $ 17.0 million, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 16. 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, 2015 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 17. SEGMENT REPORTING For the year ended 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 presentation for 2013 was not impacted by the change in segments in 2014. The segment presentation in 2015 is unchanged from 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, 2013 International U.S. Integrated Island U.S. Renewable Reconciling Wireless Telephony Wireless Wireline Energy Items Consolidated Revenue U.S. Wireless $ $ — $ — $ — $ — $ — $ International Wireless — — — — Wireline — — — Equipment and Other — — Total Revenue — — Depreciation and amortization — Non-cash stock-based compensation — — — — — Operating income (loss) — For the Year Ended December 31, 2014 International U.S. Integrated Island U.S. Renewable Reconciling Wireless Telephony Wireless Wireline Energy Items Consolidated Revenue U.S. Wireless $ $ — $ — $ — $ — $ — $ International Wireless — — — — Wireline — — — Equipment and Other — Total Revenue — Depreciation and amortization Non-cash stock-based compensation — — — — — Operating income (loss) For the Year Ended December 31, 2015 International U.S. Integrated Island U.S. Renewable Reconciling Wireless Telephony Wireless Wireline Energy Items Consolidated Revenue U.S. Wireless $ $ — $ — $ — $ — $ — $ International Wireless — — — — Wireline — — — Renewable energy — — — — — Equipment and Other — — Total Revenue — Depreciation and amortization Non-cash stock-based compensation — — — — Operating income (loss) International U.S. Integrated Island U.S. Renewable Reconciling Wireless Telephony Wireless Wireline Energy Items Consolidated December 31, 2014 Net fixed assets $ $ $ $ $ $ $ Goodwill — — — Total assets (1) December 31, 2015 Net fixed assets $ $ $ $ $ $ $ Goodwill — — — Total assets (1) Includes $175 of assets associated with our discontinued operations as of December 31, 2014. Capital Expenditures International U.S. Integrated Island U.S. Renewable Reconciling Year ended December 31, Wireless Telephony Wireless Wireline Energy Items Consolidated 2014 $ $ $ $ $ — $ $ 2015 Reconciling items refer to corporate overhead matters and consolidating adjustments. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 18. QUARTERLY FINANCIAL DATA (UNAUDITED) Following is a summary of the Company’s quarterly results of operations for the years ended December 31, 2014 and 2015 (in thousands): 2014 Consolidated for the Three Months Ended March 31 June 30 September 30 December 31 Total revenue $ $ $ $ Operating expenses Income from operations Other income (expense), net Income from continuing operations before income taxes Income taxes Income from continuing operations Income from discontinued operations: Income (loss) from discontinued operations, net of tax — — — — Gain on sale of discontinued operations, net of tax — — — Income from discontinued operations, net of tax — — — Net income Net income attributable to non-controlling interests, net of tax: Continuing operations Discontinued operations — — — — Disposal of discontinued operations — — — — Net income attributable to Atlantic Tele-Network, Inc. stockholders Net income per weighted average basic share attributable to Atlantic Tele-Network, Inc. stockholders Continuing operations Discontinued operations: Discontinued operations — — — — Gain on sale of discontinued operations — — — Total discontinued operations — — — Total Net income per weighted average diluted share attributable to Atlantic Tele-Network, Inc. stockholders Continuing operations Discontinued operations: Discontinued operations — — — Gain on Sale of discontinued operations — — — Total discontinued operations — — — Total 2015 Consolidated for the Three Months Ended March 31 June 30 September 30 December 31 Total revenue $ $ $ $ Operating expenses Income from operations Other income (expense), net Income (Loss)from continuing operations before income taxes Income taxes Income (Loss) from continuing operations Income from discontinued operations: Gain on sale of discontinued operations, net of tax — — Income from discontinued operations, net of tax — — Net income Net income attributable to non-controlling interests, net of tax: Continuing operations Discontinued operations — — — — Disposal of discontinued operations — — — — Net income attributable to Atlantic Tele-Network, Inc. stockholders Net income per weighted average basic share attributable to Atlantic Tele-Network, Inc. stockholders Continuing operations Discontinued operations: Discontinued operations — — — Gain on sale of discontinued operations — — — — Total discontinued operations — — — Total Net income per weighted average diluted share attributable to Atlantic Tele-Network, Inc. stockholders Continuing operations Discontinued operations: Discontinued operations — — — Gain on Sale of discontinued operations — — — — Total discontinued operations — — — Total During the year ended December 31, 2014, the Company recognized approximately $0.8 million in general and administrative expenses to correct for an understatement of transactional tax liabilities generated primarily in the three months ended March 31, 2014 and $1.1 million in other income to correct for an understatement of foreign exchange gains generated in period during 2013. During the three months ended December 31, 2015, the Company recognized an approximate $0.7 million benefit to correct for tax basis differences and expense recognition related to prior periods. Of these errors, $0.7 million primarily related to the three months ended September 30, 2015 and $0.1 million related to the year ended December 31, 2014. T he Company determined that the impact of the correction of these errors was not material to the current or any prior period financial statements. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2015 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENT | 19. SUBSEQUENT EVENTS On January 11, 2016, the Company entered into an Amendment, Consent and Confirmation Agreement (the “Amendment”) to its Amended Credit Facility, providing for lender consent to, among other actions, (i) the contribution by the Company of all of its equity interests in ATN Bermuda Holdings, Ltd. to ATN Overseas Holdings, Ltd. in connection with the KeyTech Transaction, and subject to the closing of the KeyTech Transaction, a one-time, non-pro rata cash distribution by KeyTech Limited in an aggregate amount not to exceed $13.0 million to certain of KeyTech Limited’s shareholders; and (ii) the incurrence by certain subsidiaries of the Company of secured debt in an aggregate principal amount not to exceed $60.0 million in connection with the Innovative Transaction. The Amendment also increases the amount the Company is permitted to invest in “unrestricted” subsidiaries of the Company, which are not subject to the covenants of the Amended Credit Facility, from $275.0 million to $400.0 million (as such increased amount shall be reduced from time to time by the aggregate amount of certain dividend payments to the Company’s stockholders).The Amendment also provides for the incurrence by the Company of incremental term loan facilities, when combined with increases to revolving loan commitments under the Amended Credit Facility, in an aggregate amount not to exceed $200.0 million which facilities shall be subject to certain conditions, including pro forma compliance with the total net leverage ratio financial covenant under the Amended Credit Facility. |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE I I ATLANTIC TELE ‑NETWORK, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS (Amounts in Thousands) Balance at Charged to Balance Beginning Costs and at End of Year Expenses Deductions of Year YEAR ENDED, December 31, 2013 Description: Valuation allowance on foreign tax credit carryforwards $ $ — $ $ Valuation allowance on foreign net operating losses — Valuation allowance on state net operating losses — Allowance for doubtful accounts $ $ $ $ YEAR ENDED, December 31, 2014 Description: Valuation allowance on foreign tax credit carryforwards $ $ — $ $ Valuation allowance on foreign net operating losses — Valuation allowance on state net operating losses — Allowance for doubtful accounts $ $ $ $ YEAR ENDED, December 31, 2015 Description: Valuation allowance on foreign tax credit carryforwards $ $ — $ $ Valuation allowance on foreign net operating losses — Valuation allowance on state net operating losses — Allowance for doubtful accounts $ $ $ $ |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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. Certain reclassifications have been made in the prior period financial statements to conform the Company’s consolidated income statements to how management analyzes its operations in the current period. These changes did not impact operating income. For the year ended December 31, 2013 the aggregate impact of the changes included an increase to termination and access fees of $14.4 million, a decrease to engineering and operations expenses of $11.0 million, an increase to sales and marketing expenses of $0.5 million, an increase to equipment expense of $0.1 million, and a decrease to general and administrative expenses of $4.0 million. For the year ended December 31, 2014 the aggregate impact of the changes included an increase to termination and access fees of $13.7 million, a decrease to engineering and operations expenses of $9.3 million, an increase to sales and marketing expenses of $0.7 million and a decrease to general and administrative expenses of $5.1 million. 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. During the years ended December 31, 2014 and 2015, the Company recorded additional gains of $1.1 million relating to changes in certain estimates. 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, 2015, the Company had deposits with banks in excess of FDIC insured limits and $50.7 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 9). As of December 31, 2014 and 2015, the Company held $1.8 million and $3.8 million, respectively, of its cash in Guyana 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. |
Restricted Cash | Restricted Cash Substantially all of the Company’s restricted cash balances were acquired as a part of the acquisition of Ahana Renewables as described in Note 3. The restricted cash is held in escrow and serves as collateral for Ahana Renewables’ debt in order to meet future debt service obligations and other operating obligations of the solar facilities. |
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 $2.7 million and $3.0 million as of December 31, 2014 and 2015, 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 ended December 31, 2015. |
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, 2014 and 2015, 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 8 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 sheet 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): Projected Pension Benefit Translation Obligation Adjustment Total Balance at December 31, 2013 $ $ $ Adjust funded status of pension plan, net of tax of $0.6 million — Foreign currency translation adjustment — Balance at December 31, 2014 Adjust funded status of pension plan, net of tax of $0.7 million — Foreign currency translation adjustment — Balance at December 31, 2015 $ $ $ |
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 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, 2015, the Company has spent $99.3 million in capital expenditures of which $73.9 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, 2014 and December 31, 2015 the Company received approximately $3.9 million and $7.9 million, respectively, from the Universal Service Fund programs. Of these amounts, $ 1.3 million for the years ended December 31, 2014 and December 31, 2015 were to support our U.S. Wireless business relating to high ‑cost areas. Funding received from the Mobility Fund, as further described in Note 11, 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. As of December 31, 2014, the Company had deferred taxes that were classified as current and noncurrent assets and liabilities. The Company elected to prospectively adopt ASU 2015-17 as of December 31, 2015, thus reclassifying $3.9 million of current deferred tax assets and $0.2 million of current deferred tax liabilities to noncurrent on the accompanying consolidated December 31, 2015 balance sheet. The prior reporting period was not retrospectively adjusted. The adoption of this guidance had no impact on the Company’s consolidated results of income and comprehensive income. |
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 2013 2014 2015 Verizon % % % AT&T % % % 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, 2014 and 2015: Customer 2014 2015 AT&T % % Verizon % % |
Foreign Currency Gains and Losses | Foreign Currency Gains and Losses With regard to the Company’s Guyana operations, for which the Guyana 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. Beginning in 2013, the value of the Guyana Dollar increased from approximately G$205 to one U.S. Dollar 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, 2015 the exchange rate remained at 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, 2014 and 2015 are summarized as follows: December 31, 2014 Significant Other Quoted Prices in Observable Active Markets Inputs Description (Level 1) (Level 2) Total Certificates of deposit $ — $ $ Money market funds $ $ — $ Total assets measured at fair value $ $ $ December 31, 2015 Significant Other Quoted Prices in Observable Active Markets Inputs Description (Level 1) (Level 2) Total Certificates of deposit $ — $ $ Money market funds $ $ — $ Total assets measured at fair value $ $ $ Certificate of Deposit As of December 31, 2014 and December 31, 2015, 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, 2014 and December 31, 2015, 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 is 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. As a result of the repayment of its variable rate debt on September 20, 2013, the Company terminated its interest rate derivatives. |
Other Fair Value Disclosures | Other Fair Value Disclosures The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate their fair values because of the relatively short-term maturities of these financial instruments. The fair value of long-term debt is estimated using Level 2 inputs. At December 31, 2015, the fair value of long-term debt, including the current portion, was equal to its carrying amount of $32,860 . At December 31, 2014, the fair value of the long-term debt, including the current portion, was equal to its carrying amount of $38,877 . |
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): Year ended December 31, 2013 2014 2015 Basic weighted-average common shares outstanding Stock options Diluted weighted-average common 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, 2013 2014 2015 Stock options — Total — |
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. Relating to grants of options, the Company recognized $1. 4 million, $ 0.9 million and $0.4 million of non ‑cash, share ‑based compensation expense during 2013, 2014 and 2015, respectively. See Note 12 for assumptions used to calculate the fair value of the options granted. The Company also issued 100,902 restricted shares of common stock in 2013; 109, 318 restricted shares of common stock in 2014 and 93,864 restricted shares of common stock in 2015. 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 $3.1 million, $3.4 million and $4.3 million in 2013, 2014 and 2015, respectively. In connection with the Ahana Acquisition, the Company issued shares of Ahana Renewables to Ahana Renewables' management and recorded $0.3 million of stock based compensation during 2015. Stock ‑based compensation expense is recognized within general and administrative expenses within the consolidated income statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“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 was effective prospectively for reporting periods beginning after December 15, 2014. See note 5 for a discussion of the Company’s sale of certain assets and liabilities of its Turks and Caicos business. In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers”, which provides 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 may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. On July 9, 2015, the FASB approved the deferral of the new standard's effective date by one year. The new standard is now effective for annual reporting periods beginning after December 15, 2017. The FASB will permit companies to adopt the new standard early, but not before the original effective date of annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the adoption method options and the impact of the new guidance on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”, which amends the presentation of debt issuance costs on the consolidated balance sheet. Under the new guidance, debt issuance costs are presented as a direct deduction from the carrying amount of the debt liability rather than as an asset. The new guidance is effective retrospectively for fiscal periods starting after December 15, 2015 and early adoption is permitted. The Company expect to adopt ASU 2015-03 on January 1, 2016 and have determined that its adoption will not have a material impact on its consolidated financial statements and related disclosures at that time. In April 2015, the FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement”, which provides guidance about whether a cloud computing arrangement includes software and how to account for that software license. The new guidance does not change the accounting for a customer’s accounting for service contracts. The standard is effective beginning January 1, 2017, with early adoption permitted, and may be applied prospectively or retrospectively. The Company does not expect ASU 2015-05 to have a material impact on its consolidated financial position, results of operations or cash flows. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments”, which provides updated guidance related to simplifying the accounting for measurement period adjustments related to business combinations. The amended guidance eliminates the requirement to retrospectively account for adjustments made during the measurement period. The standard is effective beginning January 1, 2016, with early adoption permitted. We do not expect ASU 2015-16 to have a material impact on our consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-2, “Leases (Topic 842)”, which provides comprehensive lease accounting guidance. The standard requires entities to recognize lease assets and liabilities on the balance sheet as well as disclosure of key information about leasing arrangements. ASU 2016-2 will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the new guidance on our consolidated financial statements. |
ORGANIZATION AND BUSINESS OPE31
ORGANIZATION AND BUSINESS OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 | 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, 2015: Services Segment Markets Tradenames Wireless U.S. Wireless United States (rural markets) Commnet, Choice Island Wireless Aruba, Bermuda, U.S. Virgin Islands Mio, CellOne, Islandcom (through March 23, 2015), 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 ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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): Projected Pension Benefit Translation Obligation Adjustment Total Balance at December 31, 2013 $ $ $ Adjust funded status of pension plan, net of tax of $0.6 million — Foreign currency translation adjustment — Balance at December 31, 2014 Adjust funded status of pension plan, net of tax of $0.7 million — Foreign currency translation adjustment — Balance at December 31, 2015 $ $ $ |
Schedule of percentage of revenues generated from a single customer that exceeds 10% of the Company's consolidated revenue | Customer 2013 2014 2015 Verizon % % % AT&T % % % |
Schedule of percentage of accounts receivable, from customers that exceed 10% of the Company's consolidated accounts receivable, net of allowances | Customer 2014 2015 AT&T % % Verizon % % |
Schedule of assets and liabilities of the Company measured at fair value on a recurring basis | December 31, 2014 Significant Other Quoted Prices in Observable Active Markets Inputs Description (Level 1) (Level 2) Total Certificates of deposit $ — $ $ Money market funds $ $ — $ Total assets measured at fair value $ $ $ December 31, 2015 Significant Other Quoted Prices in Observable Active Markets Inputs Description (Level 1) (Level 2) Total Certificates of deposit $ — $ $ Money market funds $ $ — $ Total assets measured at fair value $ $ $ |
Schedule of reconciliation from basic to diluted weighted average common shares outstanding (in thousands) | The reconciliation from basic to diluted weighted average common shares outstanding is as follows (in thousands): Year ended December 31, 2013 2014 2015 Basic weighted-average common shares outstanding Stock options Diluted weighted-average common shares outstanding |
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, 2013 2014 2015 Stock options — Total — |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Ahana Renewables | |
Acquisitions | |
Schedule of assessment of total acquisition costs to net assets based on acquisition date fair values | Total consideration $ Purchase price allocation: Cash $ 6,571 Other current assets Property, plant and equipment Restricted cash Current liabilities Long-Term debt Non-controlling interests Net assets acquired $ |
DISCONTINUED OPERATIONS - SAL34
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 $ Escrowed Working capital Adjusted proceeds Less: Net assets sold or impaired: Assets sold or impaired: Current assets Property, plant and equipment, net Telecommunications licenses Other intangible assets Other assets Liabilities sold: Current liabilities Other liabilities Net assets sold or impaired Less: Transaction related costs Pre-tax gain Less: Income taxes at effective rate Net gain on sale $ |
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, 2013 was as follows (in thousands): Year Ended December 31, 2013 Revenue from discontinued operations $ Income from discontinued operations, net of tax expense of $2,512 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ACCOUNTS RECEIVABLE: | |
Schedule of accounts receivable | As of December 31, 2014 and 2015, accounts receivable consist of the following (in thousands): 2014 2015 Retail $ $ Wholesale Other Accounts receivable Less: allowance for doubtful accounts Total accounts receivable, net $ $ |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
FIXED ASSETS: | |
Schedule of property, plant and equipment | As of December 31, 2014 and 2015, property, plant and equipment consisted of the following (in thousands): Useful Life (in Years) 2014 2015 Telecommunications equipment and towers 5 - 15 $ $ Solar assets 20 - 23 Office and computer equipment 3 - 10 Buildings 15 - 39 Transportation vehicles 3 - 10 Leasehold improvements Shorter of useful life or lease term Land — Furniture and fixtures 5 - 10 Total property, plant and equipment Construction in progress Total property, plant and equipment Less: Accumulated depreciation Net fixed assets $ |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 were as follows (in thousands): U.S. U.S. Island Wireless Wireline Wireless Consolidated Balance at December 31, 2013 $ $ $ $ Acquired licenses — — Amortization — — Balance at December 31, 2014 $ $ $ $ Amortization — — Balance at December 31, 2015 $ $ $ $ |
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 2016 $ 2017 2018 2019 2020 Thereafter Total $ |
DERIVATIVE INSTRUMENTS AND HE38
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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): Amount of Gain or Amount of Gain or (Loss) Reclassified (Loss) Recognized Location of Gain or from Accumulated in Other (Loss) Reclassified Other Comprehensive from Accumulated Comprehensive Income on Other Income into Derivative in Cash Flow Derivative Comprehensive Income Year ended December 31, Hedging Relationships (Effective Portion) Income into Income (Effective Portion) (Effective Portion) 2013 Interest Rate Swap $ Interest expense $ |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 | Aggregate Shares Cost Average Year ended December 31, Repurchased (in thousands) Repurchase Price 2013 $ $ 2014 2015 |
Summary of stock option activity | Year Ended December 31, 2014 Weighted Average Remaining Number of Weighted Avg. Contractual Aggregate Options Exercise Price Term (Years) Intrinsic Value Outstanding at January 1, 2014 $ Exercised Forfeited—Unvested Outstanding at December 31, 2014 $ Vested and expected to vest at December 31, 2014 $ Exercisable at December 31, 2014 $ Year Ended December 31, 2015 Weighted Average Weighted Avg. Remaining Number of Exercise Contractual Aggregate Options Price Term (Years) Intrinsic Value Outstanding at January 1, 2015 $ Granted Exercised Forfeited—Unvested — — Outstanding at December 31, 2015 $ Vested and expected to vest at December 31, 2015 $ Exercisable at December 31, 2015 $ |
Summary of information relating to options granted and exercised | The following table summarizes information relating to options granted and exercised during the years ended December 31, 2013, 2014 and 2015 (in thousands, except fair value of options granted data): 2013 2014 2015 Weighted-average fair value of options granted $ N/A $ N/A $ Aggregate intrinsic value of options exercised Cash proceeds received upon exercise of options Excess tax benefits from share-based compensation |
Schedule of weighted-average assumptions using Black-Scholes option-pricing model for estimating fair value of each option granted | Options Granted in 2015 Risk-free interest rate % Expected dividend yield % Expected life years Expected volatility % |
Summary of restricted stock activity | The following table summarizes restricted stock activity during the year ended December 31, 2014: Weighted Avg. Shares Fair Value Unvested as of January 1, 2014 $ Granted Forfeited Vested and issued Unvested as of December 31, 2014 $ The following table summarizes restricted stock activity during the year ended December 31, 2015: Weighted Avg. Shares Fair Value Unvested as of January 1, 2015 $ Granted Forfeited Vested and issued Unvested as of December 31, 2015 $ |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES | |
Schedule of components of income before income taxes | The components of income before income taxes for the years ended December 31, 2013, 2014 and 2015 are as follows (in thousands): 2013 2014 2015 Domestic $ $ $ Foreign Total $ $ $ |
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, 2013, 2014, and 2015 (in thousands): 2013 2014 2015 Tax computed at statutory U.S. federal income tax rates $ $ $ Non-controlling interest Income taxes in excess (below) statutory U.S. tax rates: Guyana Bermuda and Turks & Caicos Turks & Caicos intercompany note receivable write-down — — Foreign tax reserve State taxes Change in valuation allowance Foreign tax credit expiration Other, net Income tax expense $ $ $ |
Schedule of components of income tax expense (benefit) | The components of income tax expense (benefit) for the years ended December 31, 2013, 2014 and 2015 are as follows (in thousands): \ 2013 2014 2015 Current: United States—Federal $ $ $ United States—State Foreign Total current income tax expense $ $ $ Deferred: United States—Federal $ $ $ United States—State Foreign Total deferred income tax expense (benefit) Consolidated: United States—Federal $ $ $ United States—State Foreign Total income tax expense $ $ $ |
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, 2014 and 2015 (in thousands): 2014 2015 Deferred tax assets: Receivables reserve $ $ Temporary differences not currently deductible for tax Deferred compensation Foreign tax credit carryforwards Pension Net operating losses Valuation allowance Total deferred tax asset Deferred tax liabilities: Property, plant and equipment, net $ $ Intangible assets, net Tax on foreign earnings — Total deferred tax liabilities Net deferred tax liabilities $ $ |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities are reflected in the accompanying consolidated balance sheets as follows (in thousands): 2014 2015 Deferred tax assets: Current $ $ — Long term — — Total deferred tax asset $ $ — Deferred tax liabilities: Current $ $ — Long term Total deferred tax liabilities $ $ Net deferred tax liabilities $ $ |
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, 2015 (in thousands): Gross unrecognized tax benefits at December 31, 2012 Increase in uncertain tax positions Lapse in statute of limitations — Gross unrecognized tax benefits at December 31, 2013 Increase in uncertain tax positions Lapse in statute of limitations Settlements — Gross unrecognized uncertain tax benefits at December 31, 2014 Increase in uncertain tax positions Lapse in statute of limitations — Settlements — Gross unrecognized uncertain tax benefits at December 31, 2015 $ |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
RETIREMENT PLANS | |
Schedule of weighted-average rates assumed in the actuarial calculations for the pension plan | 2013 2014 2015 Discount rate % % % Annual salary increase % % % Expected long-term return on plan assets % % % |
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 2014 and 2015 (in thousands): 2014 2015 Projected benefit obligations: Balance at beginning of year: $ $ Service cost Interest cost Benefits and settlements paid Actuarial gain Exchange rate adjustment - Balance at end of year $ $ Plan net assets: Balance at beginning of year: $ $ Actual return on plan assets Company contributions - Benefits and settlements paid Exchange rate adjustment - Balance at end of year $ $ Under funded status of plan $ $ |
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, 2015 are as follows (in thousands): Asset Category Total Level 1 Level 2 Level 3 Cash, cash equivalents, money markets and other $ $ $ $ — Equity securities — — Fixed income securities — — Total $ $ $ $ — |
Schedule of weighted-average asset allocations, by asset category | 2014 2015 Cash, cash equivalents, money markets and other % % Equity securities Fixed income securities Total % % |
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, 2014 2015 Other Liabilities $ $ Accumulated other comprehensive loss, net of tax |
Schedule of amounts recognized in accumulated other comprehensive loss | Amounts recognized in accumulated other comprehensive loss consist of (in thousands): 2014 2015 Net actuarial loss $ $ Accumulated other comprehensive loss, pre-tax $ $ Accumulated other comprehensive loss, net of tax $ $ |
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, 2013, 2014 and 2015 (in thousands): 2013 2014 2015 Service cost $ $ $ Interest cost Expected return on plan assets Amortization of unrecognized net actuarial loss Net periodic pension cost $ $ $ |
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): Pension Fiscal Year Benefits 2016 $ 2017 2018 2019 2020 2021 - 2025 $ |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 (in thousands): 2016 2017 2018 2019 2020 Thereafter Total obligations under operating leases $ |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SEGMENT REPORTING | |
Schedule of information for each operating segment (in thousands) | The following tables provide information for each operating segment (in thousands): For the Year Ended December 31, 2013 International U.S. Integrated Island U.S. Renewable Reconciling Wireless Telephony Wireless Wireline Energy Items Consolidated Revenue U.S. Wireless $ $ — $ — $ — $ — $ — $ International Wireless — — — — Wireline — — — Equipment and Other — — Total Revenue — — Depreciation and amortization — Non-cash stock-based compensation — — — — — Operating income (loss) — For the Year Ended December 31, 2014 International U.S. Integrated Island U.S. Renewable Reconciling Wireless Telephony Wireless Wireline Energy Items Consolidated Revenue U.S. Wireless $ $ — $ — $ — $ — $ — $ International Wireless — — — — Wireline — — — Equipment and Other — Total Revenue — Depreciation and amortization Non-cash stock-based compensation — — — — — Operating income (loss) For the Year Ended December 31, 2015 International U.S. Integrated Island U.S. Renewable Reconciling Wireless Telephony Wireless Wireline Energy Items Consolidated Revenue U.S. Wireless $ $ — $ — $ — $ — $ — $ International Wireless — — — — Wireline — — — Renewable energy — — — — — Equipment and Other — — Total Revenue — Depreciation and amortization Non-cash stock-based compensation — — — — Operating income (loss) International U.S. Integrated Island U.S. Renewable Reconciling Wireless Telephony Wireless Wireline Energy Items Consolidated December 31, 2014 Net fixed assets $ $ $ $ $ $ $ Goodwill — — — Total assets (1) December 31, 2015 Net fixed assets $ $ $ $ $ $ $ Goodwill — — — Total assets (1) Includes $175 of assets associated with our discontinued operations as of December 31, 2014. Capital Expenditures International U.S. Integrated Island U.S. Renewable Reconciling Year ended December 31, Wireless Telephony Wireless Wireline Energy Items Consolidated 2014 $ $ $ $ $ — $ $ 2015 |
QUARTERLY FINANCIAL DATA (UNA44
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2014 and 2015 (in thousands): 2014 Consolidated for the Three Months Ended March 31 June 30 September 30 December 31 Total revenue $ $ $ $ Operating expenses Income from operations Other income (expense), net Income from continuing operations before income taxes Income taxes Income from continuing operations Income from discontinued operations: Income (loss) from discontinued operations, net of tax — — — — Gain on sale of discontinued operations, net of tax — — — Income from discontinued operations, net of tax — — — Net income Net income attributable to non-controlling interests, net of tax: Continuing operations Discontinued operations — — — — Disposal of discontinued operations — — — — Net income attributable to Atlantic Tele-Network, Inc. stockholders Net income per weighted average basic share attributable to Atlantic Tele-Network, Inc. stockholders Continuing operations Discontinued operations: Discontinued operations — — — — Gain on sale of discontinued operations — — — Total discontinued operations — — — Total Net income per weighted average diluted share attributable to Atlantic Tele-Network, Inc. stockholders Continuing operations Discontinued operations: Discontinued operations — — — Gain on Sale of discontinued operations — — — Total discontinued operations — — — Total 2015 Consolidated for the Three Months Ended March 31 June 30 September 30 December 31 Total revenue $ $ $ $ Operating expenses Income from operations Other income (expense), net Income (Loss)from continuing operations before income taxes Income taxes Income (Loss) from continuing operations Income from discontinued operations: Gain on sale of discontinued operations, net of tax — — Income from discontinued operations, net of tax — — Net income Net income attributable to non-controlling interests, net of tax: Continuing operations Discontinued operations — — — — Disposal of discontinued operations — — — — Net income attributable to Atlantic Tele-Network, Inc. stockholders Net income per weighted average basic share attributable to Atlantic Tele-Network, Inc. stockholders Continuing operations Discontinued operations: Discontinued operations — — — Gain on sale of discontinued operations — — — — Total discontinued operations — — — Total Net income per weighted average diluted share attributable to Atlantic Tele-Network, Inc. stockholders Continuing operations Discontinued operations: Discontinued operations — — — Gain on Sale of discontinued operations — — — — Total discontinued operations — — — Total |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Termination and Access Fees [Member] | |||
Prior period corrections | |||
Reclassification, decrease (increase) to expense | $ 14.4 | $ 13.7 | |
Engineering and Operations Expenses [Member] | |||
Prior period corrections | |||
Reclassification, decrease (increase) to expense | (11) | (9.3) | |
Equipment Expense [Member] | |||
Prior period corrections | |||
Reclassification, decrease (increase) to expense | $ (0.1) | ||
Selling and Marketing Expense [Member] | |||
Prior period corrections | |||
Reclassification, decrease (increase) to expense | 0.5 | 0.7 | |
General and administrative expense | |||
Prior period corrections | |||
Reclassification, decrease (increase) to expense | $ (4) | $ (5.1) |
SUMMARY OF SIGNIFICANT ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disposal (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 20, 2013 | |
Pending Sale Of U.S. Retail Wireless Business | |||||||
Gain (loss) on sale of assets | $ 702 | $ 389 | $ 1,102 | $ 1,092 | $ 1,102 | $ 307,102 | |
Alltel Sale | AT&T Mobility | |||||||
Pending Sale Of U.S. Retail Wireless Business | |||||||
Consideration for sale of operations in all-cash transaction | $ 780,000 | ||||||
Working capital | 16,828 | ||||||
Gain (loss) on sale of assets | 307,102 | ||||||
Additional gain (loss) on sale of assets | $ 1,100 | $ 1,100 |
SUMMARY OF SIGNIFICANT ACCOUN47
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deposits (Details) GYD in Millions, $ in Millions | Dec. 31, 2015GYD | Dec. 31, 2015USD ($) | Dec. 31, 2014GYD |
Cash | |||
Deposit with non-insured institutions | $ | $ 50.7 | ||
Guyanese dollars | |||
Cash | |||
Cash (in GYD) | GYD | GYD 3.8 | GYD 1.8 |
SUMMARY OF SIGNIFICANT ACCOUN48
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fixed Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fixed assets | |||
Accrued asset retirement obligations | $ 3 | $ 2.7 | |
Impairment of fixed assets | $ 0 | $ 0 | $ 0 |
Minimum | |||
Fixed assets | |||
Useful life | 3 years | ||
Maximum | |||
Fixed assets | |||
Useful life | 39 years |
SUMMARY OF SIGNIFICANT ACCOUN49
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Acquired Intangibles (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible assets | ||
Telecommunications license impairment | $ 0 | $ 0 |
Goodwill impairment | $ 0 | $ 0 |
Customer relationships | Maximum | ||
Intangible assets | ||
Estimated life | 12 years |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated other comprehensive income (loss) | |||
Stockholders' Equity Attributable to Parent, Beginning Balance | $ 677,222 | ||
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 | (809) | $ (724) | $ (631) |
Foreign currency translation adjustment | 26 | 4 | (259) |
Stockholders' Equity Attributable to Parent, Ending Balance | 680,299 | 677,222 | |
Adjust funded status of pension plan, tax | 700 | 600 | |
Accumulated Other Comprehensive Income/(Loss) | |||
Accumulated other comprehensive income (loss) | |||
Stockholders' Equity Attributable to Parent, Beginning Balance | (2,921) | (2,202) | |
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 | (809) | (723) | |
Foreign currency translation adjustment | 26 | 4 | |
Stockholders' Equity Attributable to Parent, Ending Balance | (3,704) | (2,921) | (2,202) |
Projected Pension Benefit Obligation | |||
Accumulated other comprehensive income (loss) | |||
Stockholders' Equity Attributable to Parent, Beginning Balance | (2,672) | (1,949) | |
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 | (809) | (723) | |
Stockholders' Equity Attributable to Parent, Ending Balance | (3,481) | (2,672) | (1,949) |
Translation Adjustment | |||
Accumulated other comprehensive income (loss) | |||
Stockholders' Equity Attributable to Parent, Beginning Balance | (249) | (253) | |
Foreign currency translation adjustment | 26 | 4 | |
Stockholders' Equity Attributable to Parent, Ending Balance | $ (223) | $ (249) | $ (253) |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Grants (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting for grants | |||
Amount spent in capital expenditures | $ 64,753 | $ 58,300 | $ 69,316 |
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 | $ 99,300 | ||
Amount that has been funded or will be funded | 73,900 | ||
Universal Service Fund programs | |||
Accounting for grants | |||
Amount received | 7,900 | 3,900 | |
Amount available to support U.S wireless business relating to high-cost areas | $ 1,300 | $ 1,300 |
SUMMARY OF SIGNIFICANT ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Risk (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | Customer concentration | AT&T | |||
Credit concentrations and significant customers | |||
Percentage of concentration risk | 17.00% | 26.00% | 18.00% |
Revenues | Customer concentration | Verizon | |||
Credit concentrations and significant customers | |||
Percentage of concentration risk | 19.00% | 16.00% | 13.00% |
Accounts receivable | Credit concentration | AT&T | |||
Credit concentrations and significant customers | |||
Percentage of concentration risk | 17.00% | 47.00% | |
Accounts receivable | Credit concentration | Verizon | |||
Credit concentrations and significant customers | |||
Percentage of concentration risk | 13.00% | 7.00% |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - FV Instruments (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)GYD / $ | Dec. 31, 2013GYD / $ | Dec. 31, 2012GYD / $ | |
Fair value of financial instruments | ||||
Value of a Guyana dollar to one U.S. dollar | GYD / $ | 210 | 210 | 205 | |
Foreign currency gain (loss) | $ 1,100 | |||
Recurring basis | Total | ||||
Fair value of financial instruments | ||||
Certificates of deposit | 363 | $ 377 | ||
Money market funds | 1,493 | 76,263 | ||
Total assets measured at fair value | 1,856 | 76,640 | ||
Recurring basis | Level 1 | ||||
Fair value of financial instruments | ||||
Money market funds | 1,493 | 76,263 | ||
Total assets measured at fair value | 1,493 | 76,263 | ||
Recurring basis | Level 2 | ||||
Fair value of financial instruments | ||||
Certificates of deposit | 363 | 377 | ||
Total assets measured at fair value | $ 363 | $ 377 |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Fair Value Disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Long-term debt, fair value | $ 32,860 | $ 38,877 |
SUMMARY OF SIGNIFICANT ACCOUN55
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Antidilution (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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) | 2 | 61 | |
Basic weighted-average common shares outstanding | 16,022 | 15,898 | 15,704 |
Stock options (in shares) | 120 | 115 | 113 |
Diluted weighted-average common shares outstanding | 16,142 | 16,013 | 15,817 |
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) | 2 | 61 |
SUMMARY OF SIGNIFICANT ACCOUN56
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based compensation | |||
Non-cash stock-based compensation | $ 4,975 | $ 4,323 | $ 4,454 |
Stock options | |||
Stock-based compensation | |||
Options granted (in shares) | 5,000 | ||
Non-cash stock-based compensation | $ 400 | 900 | $ 1,400 |
Vesting period | 4 years | ||
Restricted Stock | |||
Stock-based compensation | |||
Options granted (in shares) | 93,864 | 100,902 | |
Non-cash stock-based compensation | $ 4,300 | $ 3,400 | $ 3,100 |
Restricted shares of common stock issued (in shares) | 93,864 | 109,318 | |
Vesting period | 4 years | ||
Ahana Renewables | |||
Stock-based compensation | |||
Non-cash stock-based compensation | $ 300 |
SUMMARY OF SIGNIFICANT ACCOUN57
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current deferred tax assets | $ 2,588 | |
Current deferred tax liabilities | $ 213 | |
Accounting Standards Update 2015-17 [Member] | Reclassification to Noncurrent [Member] | ||
Current deferred tax assets | $ 3,900 | |
Current deferred tax liabilities | $ 200 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | Oct. 06, 2015 | Sep. 30, 2015 | Dec. 24, 2014 | Dec. 31, 2015 |
CellOne [Member] | ||||
Acquisitions | ||||
Ownership percentage | 43.00% | |||
Ownership interest held by minority shareholders | 15.00% | |||
Innovative [Member] | ||||
Acquisitions | ||||
Purchase price | $ 145,000 | |||
Loan amount | 60,000 | |||
Remaining purchase price | $ 85,000 | |||
KeyTech [Member] | ||||
Acquisitions | ||||
Ownership percentage | 51.00% | |||
Cash consideration | $ 42,000 | |||
KeyTech [Member] | CellOne [Member] | ||||
Acquisitions | ||||
Ownership percentage | 85.00% | |||
Ahana Renewables | ||||
Acquisitions | ||||
Purchase price | $ 78,782 | |||
Period of placed in service date for solar assets | 5 years | |||
Ahana Renewables | Minimum | ||||
Acquisitions | ||||
Period to receive return on investment | 2 years | |||
Ahana Renewables | Maximum | ||||
Acquisitions | ||||
Period to receive return on investment | 4 years | |||
Green Lake | ||||
Acquisitions | ||||
Purchase price | 117,700 | |||
Cash consideration | 66,300 | |||
Cash and restricted cash reimbursed and applied against total consideration due | 12,500 | |||
Assumed debt | $ 38,900 |
ACQUISITIONS - Purchase Price A
ACQUISITIONS - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 24, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Purchase price allocation: | ||||||||||||
Revenue | $ 82,916 | $ 96,782 | $ 90,326 | $ 85,345 | $ 88,511 | $ 89,393 | $ 83,269 | $ 75,174 | $ 355,369 | $ 336,347 | $ 292,835 | |
Ahana Renewables | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
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 | |||||||||||
Weighted average tax rate percentage | 40.00% | |||||||||||
Discounted rate used for cash flows | 11.75% | |||||||||||
Revenue | 21,000 | 400 | ||||||||||
External acquisition related charges relating to legal, accounting and consulting services. | $ 4,000 | $ 2,500 | $ 4,000 | $ 2,500 | ||||||||
Solar assets | Ahana Renewables | ||||||||||||
Purchase price allocation: | ||||||||||||
Useful life | 25 years | |||||||||||
Discounted rate used for solar assets | 8.00% |
DISCONTINUED OPERATIONS - SAL60
DISCONTINUED OPERATIONS - SALE OF U.S. RETAIL WIRELESS BUSINESS (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 20, 2013 | |
Proceeds: | |||||||||
Current assets | $ 468,492 | $ 451,374 | $ 468,492 | $ 451,374 | |||||
Property, plant and equipment, net | 373,503 | 369,582 | 373,503 | 369,582 | |||||
Telecommunication licenses, net | 43,468 | 44,090 | 43,468 | 44,090 | |||||
Other assets | 7,489 | 7,519 | 7,489 | 7,519 | |||||
Liabilities sold: | |||||||||
Current liabilities | (84,355) | (104,069) | (84,355) | (104,069) | |||||
Other liabilities | (26,944) | (19,619) | (26,944) | (19,619) | |||||
Net gain on sale | 702 | $ 389 | 1,102 | 1,092 | 1,102 | $ 307,102 | |||
Restricted cash, current | 824 | 39,703 | 824 | 39,703 | |||||
Restricted cash, long-term | 5,477 | 5,475 | 5,477 | 5,475 | |||||
Impairment of intangible assets | 0 | 0 | |||||||
Minority shareholders' interests in sale of operations | 28,899 | ||||||||
Amount distributed to minority shareholders | 16,514 | 16,331 | 26,155 | ||||||
Amount included in non-controlling interests | 81,425 | 60,960 | 81,425 | 60,960 | |||||
Revenues and income from discontinued operations | |||||||||
Revenue from discontinued operations | $ 299,519 | ||||||||
Income from discontinued operations, net of tax expense of $2,512 | 5,166 | $ 5,166 | |||||||
AT&T Mobility | Trade names | Alltel Wireless | |||||||||
Liabilities sold: | |||||||||
Impairment of intangible assets | 11,900 | ||||||||
Alltel Sale | AT&T Mobility | |||||||||
SALE OF U.S. RETAIL WIRELESS BUSINESS | |||||||||
Consideration for sale of operations in all-cash transaction | $ 780,000 | ||||||||
Proceeds: | |||||||||
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | 780,000 | ||||||||
Received | 702,000 | ||||||||
Escrowed | 78,000 | ||||||||
Working capital | 16,828 | ||||||||
Adjusted proceeds | 796,828 | ||||||||
Current assets | 51,597 | 51,597 | |||||||
Property, plant and equipment, net | 190,970 | 190,970 | |||||||
Telecommunication licenses, net | 50,553 | 50,553 | |||||||
Other intangible assets | 37,434 | 37,434 | |||||||
Other assets | 13,202 | 13,202 | |||||||
Liabilities sold: | |||||||||
Current liabilities | (40,674) | (40,674) | |||||||
Other liabilities | (22,796) | (22,796) | |||||||
Net assets sold or impaired | 280,286 | 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 | ||||||||
Additional gain (loss) on sale of assets | 1,100 | 1,100 | |||||||
Restricted cash, current | 39,000 | 39,000 | |||||||
Indemnity escrow released | $ 39,000 | ||||||||
Minority shareholders' interests in sale of operations | 28,900 | ||||||||
Amount distributed to minority shareholders | 4,100 | 5,800 | $ 18,900 | ||||||
Amount included in non-controlling interests | $ 400 | $ 4,500 | $ 400 | 4,500 | |||||
Revenues and income from discontinued operations | |||||||||
Income from discontinued operations, tax expense (benefit) | $ 2,512 | ||||||||
Alltel Sale | AT&T Mobility | Alltel Wireless | |||||||||
SALE OF U.S. RETAIL WIRELESS BUSINESS | |||||||||
Consideration for sale of operations in all-cash transaction | 780,000 | ||||||||
Proceeds: | |||||||||
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | $ 780,000 |
LOSS ON DECONSOLIDATION OF SU61
LOSS ON DECONSOLIDATION OF SUBSIDIARY (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2015 | |
Loss on deconsolidation of subsidiary | $ 19,937 | |
Deconsolidation of non-controlling interests | $ (20,013) | |
Island Wireless | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||
Deconsolidation of non-controlling interests | $ 20,000 | |
Gain arising from excess of proceeds over the carrying value of net assets | $ 100 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ACCOUNTS RECEIVABLE | ||
Accounts receivable | $ 48,314 | $ 64,217 |
Less: allowance for doubtful accounts | (9,294) | (11,344) |
Total accounts receivable, net | 39,020 | 52,873 |
U.S. wireless, Retail | ||
ACCOUNTS RECEIVABLE | ||
Accounts receivable | 23,805 | 21,367 |
U.S. wireless, Wholesale | ||
ACCOUNTS RECEIVABLE | ||
Accounts receivable | 24,341 | 41,245 |
Other | ||
ACCOUNTS RECEIVABLE | ||
Accounts receivable | $ 168 | $ 1,605 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fixed Assets | |||
Total plant in service | $ 766,144 | $ 719,435 | |
Total property, plant, and equipment | 807,247 | 763,417 | |
Less: Accumulated depreciation | (433,744) | (393,835) | |
Net fixed assets | 373,503 | 369,582 | |
Depreciation and amortization | 55,900 | 50,300 | $ 48,300 |
Capital expenditures offset by grants | $ 2,600 | 2,300 | $ 31,600 |
Minimum | |||
Fixed Assets | |||
Useful Life | 3 years | ||
Maximum | |||
Fixed Assets | |||
Useful Life | 39 years | ||
Telecommunications equipment and towers | |||
Fixed Assets | |||
Total plant in service | $ 553,237 | $ 514,814 | |
Telecommunications equipment and towers | Minimum | |||
Fixed Assets | |||
Useful Life | 5 years | 5 years | |
Telecommunications equipment and towers | Maximum | |||
Fixed Assets | |||
Useful Life | 15 years | 15 years | |
Solar assets | |||
Fixed Assets | |||
Total plant in service | $ 111,446 | $ 111,446 | |
Solar assets | Minimum | |||
Fixed Assets | |||
Useful Life | 20 years | 20 years | |
Solar assets | Maximum | |||
Fixed Assets | |||
Useful Life | 23 years | 23 years | |
Office and computer equipment | |||
Fixed Assets | |||
Total plant in service | $ 54,665 | $ 46,757 | |
Office and computer equipment | Minimum | |||
Fixed Assets | |||
Useful Life | 3 years | 3 years | |
Office and computer equipment | Maximum | |||
Fixed Assets | |||
Useful Life | 10 years | 10 years | |
Buildings | |||
Fixed Assets | |||
Total plant in service | $ 18,540 | $ 18,079 | |
Buildings | Minimum | |||
Fixed Assets | |||
Useful Life | 15 years | 15 years | |
Buildings | Maximum | |||
Fixed Assets | |||
Useful Life | 39 years | 39 years | |
Transportation vehicles | |||
Fixed Assets | |||
Total plant in service | $ 8,882 | $ 7,589 | |
Transportation vehicles | Minimum | |||
Fixed Assets | |||
Useful Life | 3 years | 3 years | |
Transportation vehicles | Maximum | |||
Fixed Assets | |||
Useful Life | 10 years | 10 years | |
Leasehold improvements | |||
Fixed Assets | |||
Total plant in service | $ 11,592 | $ 11,494 | |
Land | |||
Fixed Assets | |||
Total plant in service | 1,198 | 1,146 | |
Furniture and fixtures | |||
Fixed Assets | |||
Total plant in service | $ 6,584 | $ 8,110 | |
Furniture and fixtures | Minimum | |||
Fixed Assets | |||
Useful Life | 5 years | 5 years | |
Furniture and fixtures | Maximum | |||
Fixed Assets | |||
Useful Life | 10 years | 10 years | |
Construction in progress | |||
Fixed Assets | |||
Total property, plant, and equipment | $ 41,103 | $ 43,982 |
GOODWILL AND INTANGIBLE ASSET64
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
GOODWILL AND INTANGIBLE ASSETS | ||
Impairment charge | $ 0 | $ 0 |
Changes in the carrying amounts of goodwill | 0 | 0 |
Goodwill balance | $ 45,077 | $ 45,077 |
GOODWILL AND INTANGIBLE ASSET65
GOODWILL AND INTANGIBLE ASSETS - Change In Carrying Amount Of Telecommunications Licenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 44,090 | |
Balance at the end of the period | 43,468 | 44,090 |
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 | 44,090 | 39,687 |
Acquired licenses | 5,025 | |
Amortization | (622) | (622) |
Balance at the end of the period | 43,468 | 44,090 |
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 | 24,913 | 19,888 |
Acquired licenses | 5,025 | |
Balance at the end of the period | 24,913 | 24,913 |
Telecommunications Licenses | U.S. Wireline | ||
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | ||
Balance at the beginning of the period | 31 | 31 |
Balance at the end of the period | 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 | 19,146 | 19,768 |
Amortization | (622) | (622) |
Balance at the end of the period | $ 18,524 | $ 19,146 |
GOODWILL AND INTANGIBLE ASSET66
GOODWILL AND INTANGIBLE ASSETS - Customer Relationships (Details) - Customer relationships - Island Wireless - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-lived intangible assets | |||
Amortization | $ 400 | $ 400 | $ 400 |
Future Amortization | |||
2,016 | 309 | ||
2,017 | 276 | ||
2,018 | 200 | ||
2,019 | 145 | ||
2,020 | 111 | ||
Thereafter | 40 | ||
Total | $ 1,081 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Nov. 14, 2013 | Jun. 17, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 20, 2013 | Dec. 19, 2014 | Aug. 31, 2013 |
Long-term debt | ||||||||
Total long-term debt | $ 26,575 | $ 32,794 | ||||||
Amended Credit Facility [Member] | ||||||||
Long-term debt | ||||||||
Borrowings | 0 | |||||||
Amended Credit Facility [Member] | Universal Service Administrative Company | ||||||||
Long-term debt | ||||||||
Outstanding letters of credit | $ 29,800 | |||||||
Ahana Debt | ||||||||
Long-term debt | ||||||||
Outstanding debt | $ 32,900 | |||||||
Term loans | ||||||||
Long-term debt | ||||||||
Interest expenses | $ 4,700 | |||||||
Term loans | Credit facility | One-week LIBOR | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||||
Term loans | Credit facility | One-month LIBOR | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||||
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 | 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 [Member] | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | $ 225,000 | |||||||
Revolving credit facility | Amended Credit Facility [Member] | Minimum | ||||||||
Long-term debt | ||||||||
Commitment fee (as a percent) | 0.175% | |||||||
Revolving credit facility | Amended Credit Facility [Member] | Minimum | LIBOR | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||||
Revolving credit facility | Amended Credit Facility [Member] | Minimum | Base rate | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||||
Revolving credit facility | Amended Credit Facility [Member] | Maximum | ||||||||
Long-term debt | ||||||||
Commitment fee (as a percent) | 0.25% | |||||||
Revolving credit facility | Amended Credit Facility [Member] | Maximum | LIBOR | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 1.75% | |||||||
Revolving credit facility | Amended Credit Facility [Member] | Maximum | Base rate | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 0.75% | |||||||
Swingline sub-facility | Minimum | Base rate | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||||
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 [Member] | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | 10,000 | |||||||
Swingline sub-facility | Amended Credit Facility [Member] | 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 | $ 10,600 | $ 10,600 | ||||||
Letter of credit sub-facility | Alltel Mobility Funds | ||||||||
Long-term debt | ||||||||
Termination of facility | $ 19,900 | |||||||
Letter of credit sub-facility | Amended Credit Facility [Member] | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | 55,000 | |||||||
Commitment fee (as a percent) | 1.75% | |||||||
Letter of credit sub-facility | Amended Credit Facility [Member] | Universal Service Administrative Company | ||||||||
Long-term debt | ||||||||
Outstanding letters of credit | $ 9,900 | |||||||
Letter of credit sub-facility | Amended Credit Facility [Member] | Alltel Mobility Funds | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | $ 25,000 | |||||||
Amount of pending awards of mobility fund grants | $ 68,800 | |||||||
Ahana Renewables | ||||||||
Long-term debt | ||||||||
Long-term debt | $ 38,900 | |||||||
Ahana Renewables | Public Service Electric & Gas | ||||||||
Long-term debt | ||||||||
Effective interest rate (as a percent) | 11.30% | |||||||
Ahana Renewables | Minimum | ||||||||
Long-term debt | ||||||||
Effective interest rate (as a percent) | 4.50% | |||||||
Ahana Renewables | Maximum | ||||||||
Long-term debt | ||||||||
Effective interest rate (as a percent) | 6.00% |
DERIVATIVE INSTRUMENTS AND HE68
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) $ in Millions | Sep. 20, 2013USD ($) |
Interest rate derivative | |
Derivative instruments and hedging activities | |
Payment made to counterparties for termination of derivatives | $ 5.4 |
DERIVATIVE INSTRUMENTS AND HE69
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Financial Instruments (Details) - Interest rate derivative - Designated as cash flow hedges $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
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 |
GOVERNMENT GRANTS (Details)
GOVERNMENT GRANTS (Details) $ in Millions | Nov. 14, 2013USD ($) | Oct. 31, 2014USD ($) | Aug. 31, 2013USD ($) | Dec. 31, 2015USD ($)item |
MOBILITY FUND GRANTS | ||||
Number of new funds created by FCC | item | 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 | $ 10.6 | ||
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 | $ 2.4 | $ 21.7 | ||
Wholesale Mobility Funds | U.S. Wireless | ||||
MOBILITY FUND GRANTS | ||||
Mobility Funds received | 8.1 | |||
Wholesale Mobility Funds | U.S. Wireless | Operating Expenses [Member] | ||||
MOBILITY FUND GRANTS | ||||
Grant funds used to offset fixed asset related costs | 1 | |||
Wholesale Mobility Funds | U.S. Wireless | Property, Plant and Equipment [Member] | ||||
MOBILITY FUND GRANTS | ||||
Grant funds used to offset fixed asset related costs | 3.4 | |||
Wholesale Mobility Funds | U.S. Wireless | Other current liabilities | ||||
MOBILITY FUND GRANTS | ||||
Mobility Funds received | 4.6 | |||
Wholesale Mobility Funds | U.S. Wireless | Other long-term liabilities | ||||
MOBILITY FUND GRANTS | ||||
Mobility Funds received | 0.1 | |||
Stimulus Grants [Member] | New York, Parts of Pennsylvania and Vermont | ||||
MOBILITY FUND GRANTS | ||||
Capital expenditures | 35.8 | |||
Expenditures funded by stimulus grants | 27.5 | |||
Stimulus Grants [Member] | Navajo Nation | ||||
MOBILITY FUND GRANTS | ||||
Capital expenditures | 7.6 | |||
Expenditures funded by stimulus grants | 5.3 | |||
Stimulus Grants [Member] | Vermont | ||||
MOBILITY FUND GRANTS | ||||
Capital expenditures | 47.9 | |||
Expenditures funded by stimulus grants | $ 33 |
EQUITY (Details)
EQUITY (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based compensation | |||
Number of shares reserved to be granted under the plan | 2,000,000 | ||
Number of Options | |||
Exercised (in shares) | (87,378) | (43,034) | (303,536) |
Treasury Stock | |||
Shares Repurchased | 37,567 | 34,293 | 163,222 |
Aggregate Cost | $ 2,705,000 | $ 2,160,000 | $ 8,103,000 |
Average Repurchase Price (in dollars per share) | $ 72.01 | $ 63.01 | $ 49.64 |
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) | 351,253 | 401,287 | |
Granted (in shares) | 5,000 | ||
Exercised (in shares) | (87,378) | (43,034) | |
Forfeited- Unvested (in shares) | (7,000) | ||
Outstanding at the end of the period (in shares) | 268,875 | 351,253 | 401,287 |
Vested and expected to vest at the end of the period (in shares) | 268,011 | 351,142 | |
Exercisable at the end of the period (in shares) | 248,875 | 290,128 | |
Weighted Avg. Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 36.55 | $ 36.63 | |
Granted (in dollars per share) | 71.43 | ||
Exercised (in dollars per share) | 32.14 | 37.68 | |
Forfeited- Unvested (in dollars per share) | 34.22 | ||
Outstanding at the end of the period (in dollars per share) | 38.64 | 36.55 | $ 36.63 |
Vested and expected to vest at the end of the period (in dollars per share) | 38.53 | 36.56 | |
Exercisable at the end of the period (in dollars per share) | $ 38.05 | $ 36.81 | |
Weighted Average Remaining Contractual Term | |||
Outstanding | 4 years 8 months 12 days | 5 years | |
Vested and expected to vest | 4 years 8 months 12 days | 5 years | |
Exercisable | 4 years 6 months | 4 years 7 months 6 days | |
Aggregate Intrinsic Value | |||
Outstanding | $ 10,646,006 | $ 10,901,529 | |
Vested and expected to vest | 10,640,134 | 10,987,590 | |
Exercisable | 9,998,956 | 8,929,815 | |
Unamortized stock based compensation | |||
Unamortized stock based compensation | $ 200,000 | ||
Weighted-average period for recognition of unamortized stock-based compensation cost | 2 years 7 months 10 days | ||
Stock-based compensation, additional disclosures | |||
Weighted-average fair value of options granted (in dollars per share) | $ 30.70 | ||
Aggregate intrinsic value of options exercised | $ 3,488,000 | 1,098,000 | $ 6,111,000 |
Cash proceeds received upon exercise of options | 1,999,000 | 1,621,000 | 2,669,000 |
Excess tax benefits from share-based compensation | $ 1,423,000 | 513,000 | 2,101,000 |
Weighted-average assumptions using Black-Scholes option-pricing model for estimating fair value of each option granted | |||
Risk-free interest rate (as a percent) | 1.55% | ||
Expected dividend yield (as a percent) | 1.76% | ||
Expected life | 6 years 3 months | ||
Expected volatility (as a percent) | 51.85% | ||
Stock compensation expense | |||
Stock compensation expense | $ 400,000 | 900,000 | $ 1,400,000 |
Restricted Stock | |||
Stock-based compensation | |||
Vesting period | 4 years | ||
Number of Options | |||
Granted (in shares) | 93,864 | 100,902 | |
Unamortized stock based compensation | |||
Unamortized stock based compensation | $ 9,400,000 | ||
Weighted-average period for recognition of unamortized stock-based compensation cost | 2 years 7 months 6 days | ||
Stock compensation expense | |||
Stock compensation expense | $ 4,300,000 | $ 3,400,000 | $ 3,100,000 |
Shares | |||
Unvested at the beginning of the period (in shares) | 195,143 | 154,519 | |
Granted (in shares) | 93,864 | 109,318 | |
Forfeited (in shares) | (1,687) | (8,500) | |
Vested and issued (in shares) | (68,919) | (60,194) | |
Unvested at the end of the period (in shares) | 218,401 | 195,143 | 154,519 |
Weighted Avg. Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 55.13 | $ 44.04 | |
Granted (in dollars per share) | 66.26 | 64.73 | |
Forfeited (in dollars per share) | 65.18 | 51.44 | |
Vested and issued (in dollars per share) | 52.70 | 44.61 | |
Unvested at the end of the period (in dollars per share) | $ 60.60 | $ 55.13 | $ 44.04 |
2008 Equity Incentive Plan | Restricted Stock | |||
Stock-based compensation | |||
Vesting period | 4 years |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of income before income taxes | |||||||||||
Domestic | $ 50,563 | $ 57,767 | $ 13,697 | ||||||||
Foreign | 5,638 | 28,401 | 32,776 | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | $ 7,763 | $ 21,782 | $ 28,026 | $ (1,370) | $ 20,072 | $ 28,483 | $ 21,660 | $ 15,953 | $ 56,201 | $ 86,168 | $ 46,473 |
INCOME TAXES - Income Tax Recon
INCOME TAXES - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 19,652 | $ 30,160 | $ 16,270 | ||||||||
Non-controlling interest | (2,807) | (1,229) | (2,750) | ||||||||
Foreign tax reserve | 2,468 | 2,095 | 2,081 | ||||||||
State taxes | 935 | 1,252 | 400 | ||||||||
Change in valuation allowance | (5,949) | (2,548) | (476) | ||||||||
Foreign tax credit expiration | 6,396 | 2,999 | 1,820 | ||||||||
Other, net | 1,359 | 415 | 3,265 | ||||||||
Income tax expense | $ 1,482 | $ 10,134 | $ 13,008 | $ (487) | $ 5,689 | $ 9,569 | $ 7,338 | $ 5,552 | 24,137 | 28,148 | 9,536 |
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 | 379 | (284) | 701 | ||||||||
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 | $ 1,704 | $ (4,712) | (3,203) | ||||||||
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 - Components Of 74
INCOME TAXES - Components Of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||||||||||
United States-Federal | $ (1,308) | $ 14,761 | $ 1,703 | ||||||||
United States-State | (383) | 1,347 | 895 | ||||||||
Foreign | 7,959 | 12,153 | 11,787 | ||||||||
Total current income tax expense | 6,268 | 28,261 | 14,385 | ||||||||
Deferred: | |||||||||||
United States-Federal | 16,760 | 5,205 | (5,273) | ||||||||
United States-State | 1,636 | 466 | 169 | ||||||||
Foreign | (527) | (5,784) | 255 | ||||||||
Total deferred income tax expense (benefit) | 17,869 | (113) | (4,849) | ||||||||
Consolidated: | |||||||||||
United States-Federal | 15,452 | 19,966 | (3,570) | ||||||||
United States-State | 1,253 | 1,813 | 1,064 | ||||||||
Foreign | 7,432 | 6,369 | 12,042 | ||||||||
Income tax expense | $ 1,482 | $ 10,134 | $ 13,008 | $ (487) | $ 5,689 | $ 9,569 | $ 7,338 | $ 5,552 | 24,137 | 28,148 | $ 9,536 |
Deferred tax assets: | |||||||||||
Receivables reserve | 702 | 1,321 | 702 | 1,321 | |||||||
Temporary differences not currently deductible for tax | 7,236 | 8,001 | 7,236 | 8,001 | |||||||
Deferred compensation | 2,135 | 2,019 | 2,135 | 2,019 | |||||||
Foreign tax credit carryforwards | 4,180 | 10,576 | 4,180 | 10,576 | |||||||
Pension | 1,153 | 436 | 1,153 | 436 | |||||||
Net operating losses | 4,463 | 4,171 | 4,463 | 4,171 | |||||||
Valuation allowance | (7,814) | (13,763) | (7,814) | (13,763) | |||||||
Total deferred tax asset | 12,055 | 12,761 | 12,055 | 12,761 | |||||||
Deferred tax liabilities: | |||||||||||
Property, plant and equipment, net | 43,718 | 27,681 | 43,718 | 27,681 | |||||||
Intangible assets, net | 13,743 | 12,021 | 13,743 | 12,021 | |||||||
Tax on foreign earnings | 1,050 | 1,050 | |||||||||
Total deferred tax liabilities | 57,461 | 40,752 | 57,461 | 40,752 | |||||||
Net deferred tax liabilities | 45,406 | 27,991 | 45,406 | 27,991 | |||||||
Deferred tax assets: | |||||||||||
Current | 2,588 | 2,588 | |||||||||
Total deferred tax asset | 2,588 | 2,588 | |||||||||
Deferred tax liabilities: | |||||||||||
Current | 213 | 213 | |||||||||
Long term | 45,406 | 30,366 | 45,406 | 30,366 | |||||||
Total deferred tax liability | 45,406 | 30,579 | 45,406 | 30,579 | |||||||
Net deferred tax liabilities | 45,406 | 27,991 | 45,406 | $ 27,991 | |||||||
Period of cumulative loss | 3 years | ||||||||||
State | |||||||||||
Deferred tax liabilities: | |||||||||||
Net operating loss carryforwards | 40,700 | 40,700 | |||||||||
NOL carryforward valuation allowance | 2,000 | 1,700 | 2,000 | $ 1,700 | |||||||
Foreign | |||||||||||
Deferred tax liabilities: | |||||||||||
Net operating loss carryforwards | 8,600 | 8,600 | |||||||||
NOL carryforward valuation allowance | 1,700 | $ 1,400 | 1,700 | $ 1,400 | |||||||
Tax credit carryforwards that expired during the period | 6,300 | 6,300 | |||||||||
Undistributed earnings of foreign subsidiaries considered indefinitely reinvested | 156,900 | 156,900 | |||||||||
Foreign | Aruba | |||||||||||
Deferred tax liabilities: | |||||||||||
Net operating loss carryforwards | $ 5,500 | $ 5,500 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Activity related to unrecognized tax benefits | |||
Gross unrecognized tax benefits at the beginning of the period | $ 15,499 | $ 14,050 | $ 10,336 |
Increase in uncertain tax positions | 1,717 | 1,675 | 4,137 |
Lapse in statute of limitations | (226) | ||
Gross unrecognized tax benefits at the end of the period | $ 17,216 | $ 15,499 | $ 14,050 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - Pension plans for GT&T employees - USD ($) | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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% | 5.75% | |||
Annual salary increase (as a percent) | 6.50% | 6.50% | 7.50% | |||
Expected long-term return on plan assets (as a percent) | 6.50% | 7.00% | 7.00% | |||
Projected benefit obligations: | ||||||
Balance at beginning of year | $ 14,093,000 | $ 12,237,000 | ||||
Service cost | 652,000 | 612,000 | $ 543,000 | |||
Interest cost | 766,000 | 720,000 | 665,000 | |||
Benefits and settlements paid | (1,329,000) | (623,000) | ||||
Actuarial gain | 218,000 | 1,129,000 | ||||
Exchange rate adjustment | 18,000 | |||||
Balance at end of year | 14,400,000 | 14,093,000 | 12,237,000 | |||
Plan net assets: | ||||||
Balance at beginning of year | 13,165,000 | 12,673,000 | ||||
Actual return on plan assets | 110,000 | 267,000 | ||||
Company contributions | 832,000 | |||||
Benefits and settlements paid | (1,329,000) | (623,000) | ||||
Exchange rate adjustment | 16,000 | |||||
Balance at end of year | 11,946,000 | 13,165,000 | 12,673,000 | |||
Funded status of plan | ||||||
Under funded status of plan | $ (2,454,000) | $ (928,000) | ||||
Pension plan assets | ||||||
Fair value of plan assets | 13,165,000 | 12,673,000 | 12,673,000 | $ 11,946,000 | $ 13,165,000 | $ 12,673,000 |
Weighted-average asset allocations (as a percent) | 100.00% | 100.00% | ||||
Amounts recognized on the consolidated balance sheets | ||||||
Other Liabilities | $ 2,454,000 | $ 928,000 | ||||
Accumulated other comprehensive loss, net of tax | (3,481,000) | (2,672,000) | ||||
Amounts recognized in accumulated other comprehensive loss | ||||||
Net actuarial loss | (5,836,000) | (3,148,000) | ||||
Accumulated Other Comprehensive Income (Loss), before Tax, Total | (5,836,000) | (3,148,000) | ||||
Accumulated other comprehensive loss, net of tax | (3,481,000) | $ (2,672,000) | ||||
Components of the plan's net periodic pension cost | ||||||
Service cost | 652,000 | 612,000 | 543,000 | |||
Interest cost | 766,000 | 720,000 | 665,000 | |||
Expected return on plan assets | (813,000) | (848,000) | (949,000) | |||
Amortization of unrecognized net actuarial loss | 245,000 | 218,000 | 150,000 | |||
Net periodic pension cost | 850,000 | $ 702,000 | $ 409,000 | |||
Additional disclosure | ||||||
Expected contribution in 2016 | $ 586 | |||||
Estimated Pension Benefits | ||||||
2,016 | 643,000 | |||||
2,017 | 667,000 | |||||
2,018 | 757,000 | |||||
2,019 | 614,000 | |||||
2,020 | 800,000 | |||||
2021-2025 | 5,286,000 | |||||
Total | 8,767,000 | |||||
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 | $ 10,166,000 | |||||
Pension plan assets | ||||||
Fair value of plan assets | 10,166,000 | 10,166,000 | ||||
Level 2 | ||||||
Plan net assets: | ||||||
Balance at end of year | 1,780,000 | |||||
Pension plan assets | ||||||
Fair value of plan assets | 1,780,000 | 1,780,000 | ||||
Cash, cash equivalents, money markets and other | ||||||
Plan net assets: | ||||||
Balance at end of year | 9,730,000 | |||||
Pension plan assets | ||||||
Fair value of plan assets | 9,730,000 | $ 9,730,000 | ||||
Weighted-average asset allocations (as a percent) | 81.50% | 80.00% | ||||
Cash, cash equivalents, money markets and other | Level 1 | ||||||
Plan net assets: | ||||||
Balance at end of year | 7,950,000 | |||||
Pension plan assets | ||||||
Fair value of plan assets | 7,950,000 | $ 7,950,000 | ||||
Cash, cash equivalents, money markets and other | Level 2 | ||||||
Plan net assets: | ||||||
Balance at end of year | 1,780,000 | |||||
Pension plan assets | ||||||
Fair value of plan assets | 1,780,000 | 1,780,000 | ||||
Equity securities | ||||||
Plan net assets: | ||||||
Balance at end of year | 1,760,000 | |||||
Pension plan assets | ||||||
Fair value of plan assets | 1,760,000 | $ 1,760,000 | ||||
Weighted-average asset allocations (as a percent) | 14.70% | 13.00% | ||||
Equity securities | Level 1 | ||||||
Plan net assets: | ||||||
Balance at end of year | 1,760,000 | |||||
Pension plan assets | ||||||
Fair value of plan assets | 1,760,000 | $ 1,760,000 | ||||
Fixed income securities | ||||||
Plan net assets: | ||||||
Balance at end of year | 456,000 | |||||
Pension plan assets | ||||||
Fair value of plan assets | 456,000 | $ 456,000 | ||||
Weighted-average asset allocations (as a percent) | 3.80% | 7.00% | ||||
Fixed income securities | Level 1 | ||||||
Plan net assets: | ||||||
Balance at end of year | 456,000 | |||||
Pension plan assets | ||||||
Fair value of plan assets | $ 456,000 | $ 456,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) AWG in Millions, $ in Millions | Nov. 14, 2013USD ($) | Jun. 17, 2013USD ($) | Feb. 17, 2010USD ($) | Oct. 31, 2014USD ($) | Jan. 31, 2014AWG | Jan. 31, 2014USD ($) | Aug. 31, 2013USD ($) | Nov. 30, 2007USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2013USD ($) | Dec. 31, 2011USD ($) | Jan. 11, 2016USD ($) | Jan. 10, 2016USD ($) | Dec. 19, 2014USD ($) |
Commitments and contingencies | ||||||||||||||
Number of new funds created by FCC | item | 2 | |||||||||||||
Period over which a portion of the Mobility Funds is used to offset the costs of supporting the networks | 5 years | |||||||||||||
Renewal fee of telecommunications license | AWG 7.2 | $ 4 | ||||||||||||
Contingency related to spectrum fees | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Spectrum fees paid | $ 2.6 | |||||||||||||
Amended Credit Facility [Member] | Subsequent Event [Member] | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Maximum borrowing capacity | $ 400 | $ 275 | ||||||||||||
Letter of credit sub-facility | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Letters of credit posted to USAC | $ 10.6 | $ 10.6 | ||||||||||||
Outstanding letters of credit | 10.6 | 10.6 | ||||||||||||
Letter of credit sub-facility | Amended Credit Facility [Member] | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Maximum borrowing capacity | $ 55 | |||||||||||||
Commitment fee (as a percent) | 1.75% | |||||||||||||
Alltel Mobility Funds | Letter of credit sub-facility | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Termination of facility | $ 19.9 | |||||||||||||
Alltel Mobility Funds | Letter of credit sub-facility | Amended Credit Facility [Member] | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Maximum borrowing capacity | $ 25 | |||||||||||||
Amount of pending awards of mobility fund grants | $ 68.8 | |||||||||||||
Wholesale Mobility Funds | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Mobility Funds approved by FCC | $ 2.4 | $ 21.7 | ||||||||||||
Universal Service Administrative Company | Amended Credit Facility [Member] | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Letters of credit posted to USAC | 29.8 | |||||||||||||
Outstanding letters of credit | $ 29.8 | |||||||||||||
Universal Service Administrative Company | Letter of credit sub-facility | Amended Credit Facility [Member] | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Letters of credit posted to USAC | $ 9.9 | |||||||||||||
Outstanding letters of credit | $ 9.9 | |||||||||||||
Lawsuit filed by CTL | Minimum | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Damages asserted | $ 200 | |||||||||||||
Litigation proceedings and disputes in Guyana | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Period for which litigation proceedings and other disputes have not been the subject of discussions or other significant activity | 5 years | |||||||||||||
Lawsuit filed by GT&T against Digicel | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Punitive damages | $ 5 | |||||||||||||
Lawsuit filed by GT&T against Digicel | Minimum | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Damages asserted | $ 9 | |||||||||||||
Legal claims regarding tax filings with the Guyana Revenue Authority | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Future payments related to disputed tax assessments | $ 32.4 | |||||||||||||
Accrued contingent liability | $ 5 | |||||||||||||
Legal claims regarding tax filings with the Guyana Revenue Authority | Minimum | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Percentage of return on investment ensured by the government of Guyana | 15.00% |
COMMITMENTS AND CONTINGENCIES78
COMMITMENTS AND CONTINGENCIES - Lease Commitments (Details) $ in Thousands, ft² in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)ft² | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
COMMITMENTS AND CONTINGENCIES | |||
Area of lease (in square feet) | ft² | 2.6 | ||
Obligation for payments under leases | |||
2,016 | $ 25,046 | ||
2,017 | 21,919 | ||
2,018 | 16,754 | ||
2,019 | 10,080 | ||
2,020 | 6,999 | ||
Thereafter | 13,560 | ||
Total obligations under operating leases | 94,358 | ||
Rent expense | |||
Rent expense | $ 17,000 | $ 15,000 | $ 12,700 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2014USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Related Party Transaction | ||||
Rent payments | $ 17,000,000 | $ 15,000,000 | $ 12,700,000 | |
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 | item | 2 | |||
Renewal period | 5 years | |||
Percentage of increase in rent | 5.00% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($)item | Dec. 31, 2013USD ($)item | |
Segment reporting | |||||||||||
Number of reportable segments | item | 5 | 4 | 4 | ||||||||
Revenue | |||||||||||
Revenue | $ 82,916 | $ 96,782 | $ 90,326 | $ 85,345 | $ 88,511 | $ 89,393 | $ 83,269 | $ 75,174 | $ 355,369 | $ 336,347 | $ 292,835 |
Depreciation and amortization | 56,890 | 51,234 | 48,737 | ||||||||
Non-cash stock-based compensation | 4,975 | 4,323 | 4,454 | ||||||||
Operating income (loss) | 8,181 | $ 22,524 | $ 28,732 | $ 19,158 | 19,563 | $ 28,158 | $ 21,607 | $ 16,248 | 78,595 | 85,576 | 64,085 |
Segment Assets | |||||||||||
Net fixed assets | 373,503 | 369,582 | 373,503 | 369,582 | |||||||
Goodwill | 45,077 | 45,077 | 45,077 | 45,077 | |||||||
Total assets | 945,004 | 925,030 | 945,004 | 925,030 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 64,753 | 58,300 | 69,316 | ||||||||
U.S. Wireless | |||||||||||
Revenue | |||||||||||
Revenue | 155,390 | 153,040 | 107,930 | ||||||||
International wireless | |||||||||||
Revenue | |||||||||||
Revenue | 81,652 | 88,650 | 91,432 | ||||||||
Wireline | |||||||||||
Revenue | |||||||||||
Revenue | 86,485 | 85,284 | 84,585 | ||||||||
Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 10,802 | 9,373 | 8,888 | ||||||||
Renewable energy | |||||||||||
Revenue | |||||||||||
Revenue | 21,040 | ||||||||||
Reconciling Items | |||||||||||
Revenue | |||||||||||
Depreciation and amortization | 4,947 | 3,980 | 2,967 | ||||||||
Non-cash stock-based compensation | 4,708 | 4,323 | 4,454 | ||||||||
Operating income (loss) | (30,784) | (26,399) | (25,978) | ||||||||
Segment Assets | |||||||||||
Net fixed assets | 14,085 | 14,655 | 14,085 | 14,655 | |||||||
Total assets | 315,740 | 287,349 | 315,740 | 287,349 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 4,323 | 3,464 | |||||||||
Reconciling Items | Discontinued operations | |||||||||||
Segment Assets | |||||||||||
Total assets | 175 | 175 | |||||||||
U.S. Wireless | |||||||||||
Revenue | |||||||||||
Revenue | 154,592 | 109,005 | |||||||||
Depreciation and amortization | 14,345 | 14,308 | |||||||||
Operating income (loss) | 89,187 | 54,867 | |||||||||
Segment Assets | |||||||||||
Net fixed assets | 89,466 | 79,910 | 89,466 | 79,910 | |||||||
Goodwill | 32,148 | 32,148 | 32,148 | 32,148 | |||||||
Total assets | 182,669 | 188,377 | 182,669 | 188,377 | |||||||
U.S. Wireless | U.S. Wireless | |||||||||||
Revenue | |||||||||||
Revenue | 153,040 | 107,930 | |||||||||
U.S. Wireless | Wireline | |||||||||||
Revenue | |||||||||||
Revenue | 609 | 610 | |||||||||
U.S. Wireless | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 943 | 465 | |||||||||
U.S. Wireless | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 158,128 | ||||||||||
Depreciation and amortization | 17,605 | ||||||||||
Operating income (loss) | 78,357 | ||||||||||
Capital Expenditures | |||||||||||
Capital expenditures | 29,741 | 33,446 | |||||||||
U.S. Wireless | Operating segments | U.S. Wireless | |||||||||||
Revenue | |||||||||||
Revenue | 155,390 | ||||||||||
U.S. Wireless | Operating segments | Wireline | |||||||||||
Revenue | |||||||||||
Revenue | 613 | ||||||||||
U.S. Wireless | Operating segments | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 2,125 | ||||||||||
International Integrated Telephony | |||||||||||
Revenue | |||||||||||
Revenue | 86,932 | 93,446 | |||||||||
Depreciation and amortization | 17,408 | 17,975 | |||||||||
Operating income (loss) | 19,628 | 27,662 | |||||||||
Segment Assets | |||||||||||
Net fixed assets | 110,063 | 108,972 | 110,063 | 108,972 | |||||||
Total assets | 207,023 | 202,171 | 207,023 | 202,171 | |||||||
International Integrated Telephony | International wireless | |||||||||||
Revenue | |||||||||||
Revenue | 26,819 | 30,334 | |||||||||
International Integrated Telephony | Wireline | |||||||||||
Revenue | |||||||||||
Revenue | 59,129 | 61,475 | |||||||||
International Integrated Telephony | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 984 | 1,637 | |||||||||
International Integrated Telephony | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 88,893 | ||||||||||
Depreciation and amortization | 16,470 | ||||||||||
Operating income (loss) | 15,738 | ||||||||||
Capital Expenditures | |||||||||||
Capital expenditures | 14,549 | 10,646 | |||||||||
International Integrated Telephony | Operating segments | International wireless | |||||||||||
Revenue | |||||||||||
Revenue | 25,706 | ||||||||||
International Integrated Telephony | Operating segments | Wireline | |||||||||||
Revenue | |||||||||||
Revenue | 61,244 | ||||||||||
International Integrated Telephony | Operating segments | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 1,943 | ||||||||||
Island Wireless | |||||||||||
Revenue | |||||||||||
Revenue | 68,575 | 67,653 | |||||||||
Depreciation and amortization | 10,671 | 10,305 | |||||||||
Operating income (loss) | 9,046 | 8,610 | |||||||||
Segment Assets | |||||||||||
Net fixed assets | 23,199 | 26,590 | 23,199 | 26,590 | |||||||
Goodwill | 5,438 | 5,438 | 5,438 | 5,438 | |||||||
Total assets | 71,747 | 74,563 | 71,747 | 74,563 | |||||||
Island Wireless | International wireless | |||||||||||
Revenue | |||||||||||
Revenue | 61,831 | 61,098 | |||||||||
Island Wireless | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 6,744 | 6,555 | |||||||||
Island Wireless | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 62,450 | ||||||||||
Depreciation and amortization | 8,413 | ||||||||||
Operating income (loss) | 12,462 | ||||||||||
Capital Expenditures | |||||||||||
Capital expenditures | 8,255 | 6,064 | |||||||||
Island Wireless | Operating segments | International wireless | |||||||||||
Revenue | |||||||||||
Revenue | 55,946 | ||||||||||
Island Wireless | Operating segments | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 6,504 | ||||||||||
U.S. Wireline | |||||||||||
Revenue | |||||||||||
Revenue | 25,799 | 22,731 | |||||||||
Depreciation and amortization | 4,725 | 3,182 | |||||||||
Operating income (loss) | (3,668) | (1,076) | |||||||||
Segment Assets | |||||||||||
Net fixed assets | 30,130 | 28,113 | 30,130 | 28,113 | |||||||
Goodwill | 7,491 | 7,491 | 7,491 | 7,491 | |||||||
Total assets | 45,038 | 42,446 | 45,038 | 42,446 | |||||||
U.S. Wireline | Wireline | |||||||||||
Revenue | |||||||||||
Revenue | 25,546 | 22,500 | |||||||||
U.S. Wireline | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 253 | $ 231 | |||||||||
U.S. Wireline | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 24,858 | ||||||||||
Depreciation and amortization | 4,635 | ||||||||||
Operating income (loss) | (3,898) | ||||||||||
Capital Expenditures | |||||||||||
Capital expenditures | 7,847 | 4,680 | |||||||||
U.S. Wireline | Operating segments | Wireline | |||||||||||
Revenue | |||||||||||
Revenue | 24,628 | ||||||||||
U.S. Wireline | Operating segments | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | 230 | ||||||||||
Renewable energy | |||||||||||
Revenue | |||||||||||
Revenue | 449 | ||||||||||
Depreciation and amortization | 105 | ||||||||||
Operating income (loss) | (2,218) | ||||||||||
Segment Assets | |||||||||||
Net fixed assets | 106,560 | 111,342 | 106,560 | 111,342 | |||||||
Total assets | $ 122,788 | $ 130,124 | 122,788 | 130,124 | |||||||
Renewable energy | Equipment and other | |||||||||||
Revenue | |||||||||||
Revenue | $ 449 | ||||||||||
Renewable energy | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 21,040 | ||||||||||
Depreciation and amortization | 4,820 | ||||||||||
Non-cash stock-based compensation | 267 | ||||||||||
Operating income (loss) | 6,720 | ||||||||||
Capital Expenditures | |||||||||||
Capital expenditures | 38 | ||||||||||
Renewable energy | Operating segments | Renewable energy | |||||||||||
Revenue | |||||||||||
Revenue | $ 21,040 |
QUARTERLY FINANCIAL DATA (UNA81
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quarterly financial data | ||||||||||||
Total revenue | $ 82,916 | $ 96,782 | $ 90,326 | $ 85,345 | $ 88,511 | $ 89,393 | $ 83,269 | $ 75,174 | $ 355,369 | $ 336,347 | $ 292,835 | |
Operating expenses | 74,735 | 74,258 | 61,594 | 66,187 | 68,948 | 61,235 | 61,662 | 58,926 | 276,774 | 250,771 | 228,750 | |
Income from operations | 8,181 | 22,524 | 28,732 | 19,158 | 19,563 | 28,158 | 21,607 | 16,248 | 78,595 | 85,576 | 64,085 | |
Other income (expense), net | (418) | (742) | (706) | (20,528) | 509 | 325 | 53 | (295) | (22,394) | 592 | (17,612) | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 7,763 | 21,782 | 28,026 | (1,370) | 20,072 | 28,483 | 21,660 | 15,953 | 56,201 | 86,168 | 46,473 | |
Income tax | 1,482 | 10,134 | 13,008 | (487) | 5,689 | 9,569 | 7,338 | 5,552 | 24,137 | 28,148 | 9,536 | |
INCOME FROM CONTINUING OPERATIONS | 6,281 | 11,648 | 15,018 | (883) | 14,383 | 18,914 | 14,322 | 10,401 | 32,064 | 58,020 | 36,937 | |
Income from discontinued operations: | ||||||||||||
Income from discontinued operations, net of tax | 5,166 | $ 5,166 | ||||||||||
Gain on sale of discontinued operations, net of tax | 702 | 389 | 1,102 | 1,092 | 1,102 | 307,102 | ||||||
Income from discontinued operations, net of tax | 702 | 390 | 1,102 | 1,092 | 1,102 | 312,268 | ||||||
NET INCOME | 6,983 | 11,648 | 15,018 | (493) | 15,485 | 18,914 | 14,322 | 10,401 | 33,156 | 59,122 | 349,205 | |
Net loss attributable to non-controlling interests, net of tax: | ||||||||||||
Continuing operations | (2,799) | (5,072) | (5,568) | (2,777) | (2,854) | (2,747) | (2,809) | (2,560) | (16,216) | (10,970) | (7,989) | |
Discontinued operations | (601) | |||||||||||
Disposal of discontinued operations | (28,899) | |||||||||||
Net income attributable to non-controlling interests, net of tax | $ 4,184 | $ 6,576 | $ 9,450 | $ (3,270) | (2,854) | (2,747) | (2,809) | (2,560) | (16,216) | (10,970) | (37,489) | |
NET INCOME (LOSS) ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS | $ 12,631 | $ 16,167 | $ 11,513 | $ 7,841 | $ 16,940 | $ 48,152 | $ 311,716 | |||||
NET INCOME PER WEIGHTED AVERAGE BASIC SHARE ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS: | ||||||||||||
Continuing operations (in dollars per share) | $ 0.17 | $ 0.41 | $ 0.59 | $ (0.18) | $ 0.72 | $ 1.02 | $ 0.72 | $ 0.50 | $ 0.99 | $ 2.96 | $ 1.84 | |
Discontinued operations: | ||||||||||||
Discontinued operations (in dollars per share) | 0.07 | 0.29 | ||||||||||
Gain on sale of discontinued operations (in dollars per share) | 0.07 | 0.07 | 0.07 | 17.72 | ||||||||
Total discontinued operations (in dollars per share) | 0.07 | 0.07 | 0.07 | 0.07 | 18.01 | |||||||
Total (in dollars per share) | 0.17 | 0.41 | 0.59 | (0.11) | 0.79 | 1.02 | 0.72 | 0.50 | 1.06 | 3.03 | 19.85 | |
NET INCOME PER WEIGHTED AVERAGE DILUTED SHARE ATTRIBUTABLE TO ATLANTIC TELE-NETWORK, INC. STOCKHOLDERS: | ||||||||||||
Continuing operations (in dollars per share) | 0.16 | 0.41 | 0.59 | (0.18) | 0.72 | 1.01 | 0.72 | 0.49 | 0.98 | 2.94 | 1.83 | |
Discontinued operations: | ||||||||||||
Discontinued operations (in dollars per share) | 0.07 | 0.29 | ||||||||||
Gain on sale of discontinued operations (in dollars per share) | 0.07 | 0.07 | 0.07 | 17.59 | ||||||||
Total discontinued operations (in dollars per share) | 0.07 | 0.07 | 0.07 | 0.07 | 17.88 | |||||||
Total (in dollars per share) | $ 0.16 | $ 0.41 | $ 0.59 | $ (0.11) | $ 0.79 | $ 1.01 | $ 0.72 | $ 0.49 | $ 1.05 | $ 3.01 | $ 19.71 | |
Understatement of Transactional Tax Liabilities | General and administrative expense | ||||||||||||
Additional information: | ||||||||||||
Correction of immaterial prior period errors in current period | $ 800 | |||||||||||
Understatement of Foreign Exchange Gains | Selling and Marketing Expense [Member] | ||||||||||||
Additional information: | ||||||||||||
Correction of immaterial prior period errors in current period | 1,100 | |||||||||||
Tax Basis Differences and Expense Recognition | ||||||||||||
Additional information: | ||||||||||||
Correction of immaterial prior period errors in current period | $ 700 | $ 700 | $ 100 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - USD ($) $ in Millions | Jan. 11, 2016 | Jan. 10, 2016 | Dec. 19, 2014 |
KeyTech [Member] | Maximum | Subsequent Event [Member] | |||
SUBSEQUENT EVENT | |||
Potential cash dividend | $ 13 | ||
Innovative [Member] | Subsequent Event [Member] | Secured Debt | |||
SUBSEQUENT EVENT | |||
Secured debt principal amount | 60 | ||
Amended Credit Facility [Member] | Revolving credit facility | |||
SUBSEQUENT EVENT | |||
Maximum borrowing capacity | $ 225 | ||
Amended Credit Facility [Member] | Subsequent Event [Member] | |||
SUBSEQUENT EVENT | |||
Maximum borrowing capacity | 400 | $ 275 | |
Amended Credit Facility [Member] | Subsequent Event [Member] | Revolving credit facility | |||
SUBSEQUENT EVENT | |||
Maximum borrowing capacity | $ 200 |
SCHEDULE II VALUATION AND QUA83
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 25,106 | $ 25,317 | $ 24,692 |
Charged to Costs and Expenses | 1,304 | 2,978 | 2,806 |
Deductions | 9,303 | 3,189 | 2,181 |
Balance at End of Year | 17,107 | 25,106 | 25,317 |
Valuation allowance on foreign tax credit carryforwards | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 10,577 | 13,576 | 15,396 |
Deductions | 6,397 | 2,999 | 1,820 |
Balance at End of Year | 4,180 | 10,577 | 13,576 |
Valuation allowance on foreign net operating losses | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 1,500 | 1,610 | 898 |
Charged to Costs and Expenses | 172 | 712 | |
Deductions | 110 | ||
Balance at End of Year | 1,672 | 1,500 | 1,610 |
Valuation allowance on state net operating losses | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 1,687 | 1,126 | 494 |
Charged to Costs and Expenses | 275 | 561 | 632 |
Balance at End of Year | 1,962 | 1,687 | 1,126 |
Allowance for doubtful accounts | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 11,342 | 9,005 | 7,904 |
Charged to Costs and Expenses | 857 | 2,417 | 1,462 |
Deductions | 2,906 | 80 | 361 |
Balance at End of Year | $ 9,293 | $ 11,342 | $ 9,005 |