Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 15, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Entity File Number | 001-12593 | ||
Entity Registrant Name | ATN INTERNATIONAL, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-0728886 | ||
Entity Address, Address Line One | 500 Cummings Center | ||
Entity Address, City or Town | Beverly | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01915 | ||
City Area Code | 978 | ||
Local Phone Number | 619-1300 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | ATNI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 394 | ||
Entity Common Stock, Shares Outstanding | 15,481,207 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 238 | ||
Auditor Location | Boston, Massachusetts | ||
Entity Central Index Key | 0000879585 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 49,225 | $ 54,660 |
Restricted cash | 12,942 | 5,068 |
Short-term investments | 300 | 300 |
Accounts receivable, net of allowances for credit losses of $16.4 million and $15.2 million, respectively | 138,616 | 86,816 |
Customer receivable | 7,249 | 5,803 |
Inventory, materials and supplies | 19,133 | 17,902 |
Prepayments and other current assets | 53,807 | 59,139 |
Total current assets | 281,272 | 229,688 |
Fixed Assets, net | 1,080,659 | 1,055,954 |
Telecommunication licenses, net | 113,319 | 113,698 |
Goodwill | 40,104 | 40,104 |
Intangible assets, net | 19,585 | 31,992 |
Operating lease right-of-use assets | 99,335 | 108,702 |
Customer receivable - long term | 45,676 | 46,706 |
Other assets | 103,764 | 81,025 |
Total assets | 1,783,714 | 1,707,869 |
Current Liabilities: | ||
Current portion of long-term debt | 24,290 | 6,173 |
Current portion of customer receivable credit facility | 7,110 | 6,073 |
Accounts payable and accrued liabilities | 182,069 | 155,224 |
Dividends payable | 3,701 | 3,310 |
Accrued taxes | 10,876 | 7,335 |
Current portion of lease liabilities | 15,164 | 15,457 |
Advance payments and deposits | 49,984 | 39,608 |
Total current liabilities | 293,194 | 233,180 |
Deferred income taxes | 19,775 | 28,650 |
Lease liabilities, excluding current portion | 76,936 | 83,319 |
Deferred revenue, long-term | 64,035 | 72,543 |
Other liabilities | 74,531 | 65,877 |
Customer receivable credit facility, net of current portion | 38,943 | 39,275 |
Long-term debt, excluding current portion | 492,580 | 415,727 |
Total liabilities | 1,059,994 | 938,571 |
Total redeemable noncontrolling interests | 85,917 | 92,469 |
ATN International, 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; 17,702,476 and 17,584,057 shares issued, respectively, 15,421,481 and 15,763,341 shares outstanding, respectively | 173 | 173 |
Treasury stock, at cost; 2,280,995 and 1,820,716 shares, respectively | (90,447) | (73,825) |
Additional paid-in capital | 205,797 | 198,449 |
Retained earnings | 417,282 | 449,806 |
Accumulated other comprehensive income | 8,268 | 6,210 |
Total ATN International, Inc. stockholders' equity | 541,073 | 580,813 |
Noncontrolling interests | 96,730 | 96,016 |
Total equity | 637,803 | 676,829 |
Total liabilities, redeemable noncontrolling interests and equity | 1,783,714 | 1,707,869 |
Redeemable preferred units | ||
Current Liabilities: | ||
Total redeemable noncontrolling interests | 60,094 | 55,152 |
Redeemable common units | ||
Current Liabilities: | ||
Total redeemable noncontrolling interests | $ 25,823 | $ 37,317 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowances | $ 16.4 | $ 15.2 |
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 | 17,702,476 | 17,584,057 |
Common stock, shares outstanding | 15,421,481 | 15,763,341 |
Treasury stock, shares | 2,280,995 | 1,820,716 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUE: | |||
Total revenue | $ 762,216 | $ 725,745 | $ 602,707 |
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | |||
Selling, general and administrative | 242,697 | 224,399 | 181,702 |
Stock-based compensation | 8,535 | 7,406 | 6,581 |
Transaction-related charges | 551 | 4,798 | 10,221 |
Restructuring expenses | 11,228 | ||
Depreciation and amortization | 141,627 | 135,137 | 102,731 |
Amortization of intangibles from acquisitions | 12,636 | 13,016 | 7,775 |
Goodwill impairment | 0 | 0 | 20,587 |
(Gain) loss on disposition of assets and contingent consideration | 1,699 | 4,389 | 2,759 |
Total operating expenses | 749,041 | 717,803 | 617,733 |
Income from operations | 13,175 | 7,942 | (15,026) |
OTHER INCOME (EXPENSE) | |||
Interest income | 476 | 174 | 132 |
Interest expense | (42,686) | (20,417) | (9,614) |
Other income | 1,496 | 4,245 | 1,821 |
Other income (expense) | (40,714) | (15,998) | (7,661) |
LOSS BEFORE INCOME TAXES | (27,539) | (8,056) | (22,687) |
Income tax benefit | (8,785) | (473) | (1,878) |
NET LOSS | (18,754) | (7,583) | (20,809) |
Net (income) loss attributable to noncontrolling interests, net of tax (benefit) expense of $(2.3) million, $(0.8) million and $(0.4) million respectively | 4,216 | 1,938 | (1,299) |
NET LOSS ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS | $ (14,538) | $ (5,645) | $ (22,108) |
Basic (in dollars per share) | $ (1.25) | $ (0.67) | $ (1.52) |
Diluted (in dollars per share) | $ (1.25) | $ (0.67) | $ (1.52) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||
Basic (in shares) | 15,595 | 15,751 | 15,867 |
Diluted (in shares) | 15,595 | 15,751 | 15,867 |
DIVIDENDS PER SHARE APPLICABLE TO COMMON STOCK | $ 0.87 | $ 0.72 | $ 0.68 |
Communication services | |||
REVENUE: | |||
Total revenue | $ 735,082 | $ 692,221 | $ 549,620 |
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | |||
Cost of services | 319,723 | 312,895 | 249,322 |
Construction | |||
REVENUE: | |||
Total revenue | 10,629 | 15,762 | 35,889 |
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | |||
Cost of services | 10,345 | 15,763 | 36,055 |
Other | |||
REVENUE: | |||
Total revenue | $ 16,505 | $ 17,762 | $ 17,198 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED INCOME STATEMENTS | |||
Non-controlling interest, net of tax (benefit) expense | $ (2.3) | $ (0.8) | $ (0.4) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net loss | $ (18,754) | $ (7,583) | $ (20,809) |
Other comprehensive income: | |||
Foreign currency translation adjustment net of tax expense of $0, $(0.2) million, and $0.4 million | 229 | (1,385) | (689) |
Projected pension and postretirement benefit obligations, net of tax expense of $0 million, $(0.2) million and $(0.1) million, respectively | 2,035 | 2,428 | 5,014 |
Reclassification of loss on pension settlement, net of $(0.2) and $(0.8) million of tax | 195 | 915 | |
Reclassification of foreign currency (gains) losses on assets, net of tax expense of $0, $0.2 million, and $0 | 1,348 | (500) | |
Unrealized gain on derivatives net of tax expense of $0.6 million, $0, and $0 | (1,749) | (21) | 170 |
Other comprehensive income (loss), net of tax | 2,058 | 1,437 | 4,495 |
Comprehensive loss | (16,696) | (6,146) | (16,314) |
Less: Comprehensive (income) loss attributable to noncontrolling interests | 4,216 | 1,938 | (1,299) |
Comprehensive loss attributable to ATN International, Inc. | $ (12,480) | $ (4,208) | $ (17,613) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Foreign currency translation adjustment, tax expense | $ 0 | $ (0.2) | $ 0.4 |
Projected pension benefit obligation, tax expense (benefit) | 0 | (0.2) | (0.1) |
Reclassification of loss on pension settlement, net of tax | (0.2) | (0.8) | |
Reclassification of foreign currency losses, net of tax expense | 0 | 0.2 | 0 |
Unrealized gain on derivatives net of tax expense | $ 0.6 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total ATNI Stockholders' Equity | Common Stock | Treasury Stock, at cost | Additional Paid In Capital | Retained Earnings | Other Comprehensive Income/(Loss) | Non-Controlling Interests | Total |
Balance, beginning of period at Dec. 31, 2020 | $ 645,649 | $ 172 | $ (59,456) | $ 187,754 | $ 516,901 | $ 278 | $ 108,687 | $ 754,336 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Purchase of shares of common stock | (12,258) | (12,258) | (12,258) | |||||
Stock-based compensation | 6,182 | 6,182 | 334 | 6,516 | ||||
Exercise of stock options | 383 | 383 | 383 | |||||
Noncontrolling interest in equity acquired | 796 | 796 | ||||||
Dividends declared on common stock | (10,780) | (10,780) | (5,468) | (16,248) | ||||
Repurchase of non-controlling interests | (2,187) | (2,187) | (10,809) | (12,996) | ||||
Accrued dividend - redeemable preferred units | (1,962) | (1,962) | (1,962) | |||||
Deemed dividend - redeemable common units | (6,164) | (6,164) | 6,164 | |||||
Comprehensive income: | ||||||||
Net income (loss) | (22,108) | (22,108) | 1,299 | (20,809) | ||||
Other comprehensive income (loss) | 4,495 | 4,495 | 4,495 | |||||
Total comprehensive income (loss) | (17,613) | (22,108) | 4,495 | 1,299 | (16,314) | |||
Balance, end of period at Dec. 31, 2021 | 601,250 | 172 | (71,714) | 192,132 | 475,887 | 4,773 | 101,003 | 702,253 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Issuance of common units | 1 | 1 | 1 | |||||
Purchase of shares of common stock | (2,111) | (2,111) | (2,111) | |||||
Stock-based compensation | 6,779 | 6,779 | 572 | 7,351 | ||||
Dividends declared on common stock | (11,346) | (11,346) | (3,531) | (14,877) | ||||
Investments made by minority shareholders in consolidated affiliates | 22 | 22 | ||||||
Repurchase of non-controlling interests | (462) | (462) | (4,429) | (4,891) | ||||
Accrued dividend - redeemable preferred units | (4,856) | (4,856) | (4,856) | |||||
Deemed dividend - redeemable common units | (4,234) | (4,234) | 4,317 | 83 | ||||
Comprehensive income: | ||||||||
Net income (loss) | (5,645) | (5,645) | (1,938) | (7,583) | ||||
Other comprehensive income (loss) | 1,437 | 1,437 | 1,437 | |||||
Total comprehensive income (loss) | (4,208) | (5,645) | 1,437 | (1,938) | (6,146) | |||
Balance, end of period at Dec. 31, 2022 | 580,813 | 173 | (73,825) | 198,449 | 449,806 | 6,210 | 96,016 | 676,829 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Purchase of shares of common stock | (16,622) | (16,622) | (16,622) | |||||
Stock-based compensation | 7,857 | 7,857 | 678 | 8,535 | ||||
Dividends declared on common stock | (13,566) | (13,566) | (4,039) | (17,605) | ||||
Repurchase of non-controlling interests | (509) | (509) | (2,681) | (3,190) | ||||
Accrued dividend - redeemable preferred units | (4,942) | (4,942) | (4,942) | |||||
Deemed dividend - redeemable common units | 522 | 522 | 10,972 | 11,494 | ||||
Comprehensive income: | ||||||||
Net income (loss) | (14,538) | (14,538) | (4,216) | (18,754) | ||||
Other comprehensive income (loss) | 2,058 | 2,058 | 2,058 | |||||
Total comprehensive income (loss) | (12,480) | (14,538) | 2,058 | (4,216) | (16,696) | |||
Balance, end of period at Dec. 31, 2023 | $ 541,073 | $ 173 | $ (90,447) | $ 205,797 | $ 417,282 | $ 8,268 | $ 96,730 | $ 637,803 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
CONSOLIDATED STATEMENTS OF EQUITY | |
Issuance of common units (in shares) | 107,515 |
Purchase of shares of common stock | 57,115 |
Dividends declared on common stock (in dollars per share) | $ / shares | $ 0.72 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (18,754) | $ (7,583) | $ (20,809) |
Adjustments to reconcile net loss to net cash flows provided by operating activities: | |||
Depreciation and amortization | 141,627 | 135,137 | 102,731 |
Amortization of intangibles | 12,636 | 13,016 | 7,775 |
Provision for doubtful accounts | 5,012 | 6,693 | 4,850 |
Amortization of debt discount and debt issuance costs | 2,431 | 2,014 | 1,275 |
(Gain) loss on disposition of assets and contingent consideration | 1,699 | 4,387 | 2,759 |
Stock-based compensation | 8,535 | 7,406 | 6,581 |
Deferred income taxes | (16,756) | (7,452) | (6,612) |
Loss on pension settlement | 369 | 1,725 | |
(Gain) loss on investments | (4,201) | (5,656) | 86 |
Goodwill impairment | 0 | 0 | 20,587 |
Unrealized gain on foreign currency | (81) | ||
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions: | |||
Accounts receivable | (19,785) | (10,385) | (4,900) |
Customer receivable | (416) | (8,713) | (32,955) |
Prepaid income taxes | 739 | 6,206 | 84 |
Accrued taxes | 7,062 | 2,981 | (3,953) |
Materials and supplies, prepayments, and other current assets | 7,666 | (15,525) | (5,297) |
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities | 2,430 | (125) | 11,681 |
Other assets | (10,079) | (9,979) | (226) |
Other liabilities | (8,583) | (11,235) | (3,028) |
Net cash provided by operating activities | 111,632 | 102,912 | 80,548 |
Cash flows from investing activities: | |||
Capital expenditures | (163,297) | (160,114) | (96,442) |
Government capital programs - Amounts disbursed | (32,871) | (7,905) | (9,700) |
Government capital programs - Amounts received | 31,873 | 2,853 | 7,517 |
Purchases of strategic investments | (1,055) | (2,750) | (6,399) |
Sale of businesses, net of transferred cash of $0 | 1,835 | 18,597 | |
Spectrum sales and deposits refunded | 576 | 1,136 | |
Proceeds from strategic investments | 15,745 | ||
Purchase of spectrum; including deposits | (1,068) | ||
Acquisition of businesses | 1,314 | (18,044) | (340,152) |
Purchase of investments - employee benefit plan | (2,124) | ||
Proceeds from investments - employee benefit plan | 472 | ||
Proceeds from sale of assets | 1,067 | ||
Net cash used in investing activities | (165,112) | (167,245) | (426,579) |
Cash flows from financing activities: | |||
Dividends paid on common stock | (13,178) | (10,708) | (10,813) |
Distributions to noncontrolling interests | (4,039) | (3,531) | (7,468) |
Payment of debt issuance costs | (3,906) | (873) | (6,568) |
Finance lease payments | (1,375) | (1,069) | |
Term loan - repayments | (6,959) | (5,222) | (8,758) |
Term loan - borrowings | 130,000 | 20,000 | 210,000 |
Revolving credit facility - borrowings | 159,414 | 115,250 | 97,000 |
Revolving credit facility - repayments | (185,293) | (72,250) | (33,500) |
Proceeds from mezzanine equity | 71,533 | ||
Proceeds from customer receivable credit facility | 7,300 | 15,425 | 37,321 |
Repayment of customer receivable credit facility | (6,712) | (4,960) | (1,828) |
Purchases of common stock - stock- based compensation | (1,473) | (1,169) | (1,713) |
Purchases of common stock - share repurchase plan | (14,999) | (942) | (10,546) |
Proceeds from exercise of stock options | 383 | ||
Investments made by minority shareholders in consolidated affiliates | 22 | ||
Repurchases of noncontrolling interests | (2,861) | (4,891) | (13,312) |
Contingent consideration paid for business acquisition | (1,718) | ||
Net cash provided by financing activities | 55,919 | 43,364 | 321,731 |
Net change in cash, cash equivalents, and restricted cash | 2,439 | (20,969) | (24,300) |
Total cash, cash equivalents, and restricted cash, beginning of period | 59,728 | 80,697 | 104,997 |
Total cash, cash equivalents, and restricted cash, end of period | 62,167 | 59,728 | 80,697 |
Supplemental cash flow information: | |||
Interest paid | 39,251 | 19,924 | 8,231 |
Taxes paid | 2,898 | 3,241 | 3,969 |
Dividends declared, not paid | 3,701 | 3,310 | 2,672 |
Noncash investing activity: | |||
Amounts accrued for reimbursable capital expenditures from government capital programs | 31,769 | ||
Amounts accrued for non-reimbursable capital expenditures | $ 25,521 | $ 27,811 | $ 22,093 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
Net of transferred cash | $ 0 | $ 0 |
ORGANIZATION AND BUSINESS OPERA
ORGANIZATION AND BUSINESS OPERATIONS | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION AND BUSINESS OPERATIONS | |
ORGANIZATION AND BUSINESS OPERATIONS | 1. ORGANIZATION AND BUSINESS OPERATIONS The Company is a leading provider of digital infrastructure and communications services with a focus on rural and remote markets in the United States, and internationally, including Bermuda and the Caribbean region. The Company has developed significant operational expertise and resources that it uses to augment its capabilities in its local markets. With this support, the Company’s operating subsidiaries are able to improve their quality of service with greater economies of scale and expertise than would typically be available in the size markets they operate in. The Company provides management, technical, financial, regulatory, and marketing services to its operating subsidiaries and typically receives a management fee calculated as a percentage of their revenues, which is eliminated in consolidation. The Company also actively evaluates investment opportunities and other strategic transactions, both domestic and international, and generally looks for those that it believes fit the Company’s profile of telecommunications businesses and have the potential to complement the Company’s “First-to-Fiber” and “Glass & Steel™” approach in markets while keeping a focus on generating excess operating cash flows over extended periods of time. The Company uses the cash generated from its operations to maintain an appropriate ratio of debt and cash on hand and to re-invest in organic growth, to fund capital expenditures, to return cash to its stockholders through dividends or stock repurchases, and make strategic investments or acquisitions. As of December 31, 2023, the Company offered the following types of services to its customers: ● Mobile Telecommunications Services . The Company offers mobile communications services over its wireless networks and related equipment (such as handsets) to both business and consumer customers . ● Fixed Telecommunications Services . The Company provides fixed data and voice telecommunications services to business and consumer customers. These services include consumer broadband and high-speed data solutions for businesses. For some markets, fixed services also include video services and revenue derived from support under certain government programs. ● Carrier Telecommunication Services . The Company delivers services to other telecommunications providers including the leasing of critical network infrastructure such as tower and transport facilities, wholesale roaming and long distance voice services, site maintenance and international long-distance services . ● Managed Services . The Company provides information technology services such as network, application, infrastructure and hosting services to both its business and consumer customers to complement its fixed services in its existing markets. Through December 31, 2023, the Company identified two operating segments to manage and review its operations and to facilitate investor presentations of its results. These operating segments are as follows: ● International Telecom. In the Company’s international markets, it offers fixed services, mobility services, carrier services and managed services to customers in Bermuda, the Cayman Islands, Guyana and the US Virgin Islands. ● US Telecom. In the United States, the Company offers fixed services, carrier services, and managed services to business customers and consumers in Alaska and the western United States. As of December 31, 2023 the Company provided mobility services to retail customers in the western United States. 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 during 2023: International Telecom US Telecom Services Markets Tradenames Services Markets Tradenames Mobility Services Bermuda, Guyana, US Virgin Islands One, GTT, Viya Mobility Services United States (rural markets) Choice, Choice NTUA Wireless Fixed Services Bermuda, Cayman Islands, Guyana, US Virgin Islands One, Logic, GTT, Viya Fixed Services United States Alaska Communications, Commnet, Choice, Choice NTUA Wireless, Sacred Wind Communications, Ethos, Deploycom Carrier Services Bermuda, Guyana, US Virgin Islands One, GTT, Viya Carrier Services United States Alaska Communications, Commnet, Essextel, Sacred Wind Communications Managed Services Bermuda, Cayman Islands, US Virgin Islands, Guyana Fireminds, One, Logic, GTT, Viya, Brava Managed Services United States Alaska Communications, Choice |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
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’s (“FASB”) authoritative guidance on the consolidation of variable interest entities since it is determined that the Company is the primary beneficiary of these entities. 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 credit losses on trade receivables, useful lives of the Company’s fixed and finite-lived intangible assets, allocation of purchase price to assets acquired and liabilities assumed in business combinations, fair value of indefinite-lived intangible assets, goodwill 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, 2023, the Company had $21.8 million of its cash on deposit with noninsured institutions such as corporate money market issuers and cash held in foreign banks. The Company’s cash and cash equivalents are not subject to any restrictions (see Note 8). As of December 31, 2023 and 2022, the Company held $5.7 million and $4.9 million, respectively, of its cash in Guyana dollars. While there are risks associated with the conversion of Guyana dollars to US dollars due to limited liquidity in the Guyana foreign currency markets, to date it has not prevented the Company from converting Guyana dollars into US dollars within a given three month period or from converting at a price that reasonably approximates the reported exchange rate. Restricted Cash The Company classifies cash that is legally restricted as to withdrawal or usage as restricted cash. Restricted cash as of December 31, 2023 and December 31, 2022 primarily relates to cash that is restricted for regulatory purposes. Short Term Investments The Company's short-term investments consist of corporate bonds, which have remaining maturities of more than three months at the date of purchase, and equity securities classified as available for sale, which are stated at fair value. Unrealized gains and losses are recorded in other income. The estimated fair values of investments are based on quoted market prices as of the end of the reporting period. Allowance for Credit Losses The Company records an estimate of future credit losses in conjunction with the revenue transactions based on information available including historical experience, credit worthiness of customers, the Company’s historical experience with customers, current market and economic conditions, and management’s expectations of future conditions. That estimate is updated as additional information becomes available. Uncollectible amounts are charged against the allowance account. The Company’s allowance for uncollectible accounts receivable is based on management’s assessment of the collectability of assets pooled together with similar risk characteristics. Inventory, Materials and Supplies Inventory, materials and supplies primarily include handsets and other equipment held for sale to customers. These balances are recorded at the lower of cost, determined on the basis of specific identification, or market, determined using replacement value. 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 to fixed assets. Repairs and replacements of minor items of property are charged to period operating expense as incurred. The cost of fixed assets in service and under construction includes internal and external costs necessary to bring an asset to the condition and location necessary for its intended use. Grants received for the construction of assets are recognized as a reduction of the cost of fixed assets, a subsequent reduction of depreciation expense over the useful lives of those assets within the income statement and as an investing cash flow in the statements of cash flows. The Company capitalizes certain costs of developing and purchasing new information systems in accordance with internal use software guidance. These costs are depreciated over the useful life of the information system. The Company also incurs implementation costs associated with cloud computing arrangements. If these implementation costs do not meet internal use software capitalization guidance, the implementation costs are recorded as prepaid assets and expensed through operating expense over the life of the arrangement. 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. Other liabilities within the consolidated balance sheets include accruals of $ 11.4 million and $10.3 million as of December 31, 2023 and 2022, respectively, for estimated costs associated with asset retirement obligations. In accordance with the authoritative guidance for 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 asset’s carrying value in excess of 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 did not record any fixed asset impairments for the years ended December 31, 2023, 2022 or 2021. Goodwill and Indefinite-Lived Intangible Assets Goodwill is recognized in business combinations equal to 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. The assessment begins with a qualitative analysis to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the reporting unit passes this analysis, the impairment assessment is complete and no impairment is recorded. If the reporting unit does not pass the analysis, or if a quantitative analysis is elected to be applied, the Company performs additional quantitative analysis by calculating the fair value of the reporting unit. If the fair value exceeds the carrying value, the test is complete and no impairment is recorded. If the carrying value of the reporting unit, including goodwill, exceeds the fair value of the reporting unit an impairment charge is recorded equal to the excess, but not more than the total amount of goodwill allocated to the reporting unit. 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. The assessment begins with a qualitative analysis to determine whether it is more likely than not that the license fair value exceeds its carrying value. If the reporting unit passes this analysis, the impairment assessment is complete and no impairment is recorded. If the reporting unit does not pass the analysis, the Company performs additional quantitative analysis to calculate the fair value of the license. If the carrying value of the license exceeds the license fair value an impairment charge is recorded. As a part of the impairment test the Company assesses the appropriateness of the application of the indefinite-lived assertion. 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 Company performed its annual impairment assessment of its goodwill and indefinite-lived intangible assets (telecommunications licenses) for the years ended December 31, 2023 and 2022 and no impairment were identified . See Note 7 for a discussion of the Company’s impairment of a portion of its goodwill within its International Telecom segment during the year ended December 31, 2021. Other 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 the assets acquired. These include acquired customer relationships and trade names. The process for estimating the fair values of identifiable intangible assets requires the use of significant estimates and assumptions by management, including revenue growth rates, customer attrition rates, royalty rates, discount rates and projected future cash flows. Customer relationships and trade names are amortized over their estimated lives ranging from 5-13 years and 6-15 years, respectively, based on the pattern in which economic benefit of the customer relationship is estimated to be realized. The Company evaluates intangible assets subject to amortization annually for impairment. Debt Debt is measured at amortized cost. Debt issuance costs are recorded as a reduction to the carrying value of the debt and are amortized as interest expense in the consolidated income statements over the period of the debt. 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. Redeemable Noncontrolling Interests The redeemable noncontrolling interests in the accompanying consolidated balance sheets reflect common and preferred units issued in conjunction with the Company’s acquisition of Alaska Communication and common units issued in conjunction with the Company’s acquisition of Sacred Wind. (Refer to Note 5). Generally, the holders of these instruments have the ability to sell the instrument to a subsidiary of the Company in a future period. The common redeemable noncontrolling interests are recorded at the greater of historical cost or fair value. Historical cost is calculated as the original investment adjusted for subsequent capital contributions and distributions as well as the applicable share of earnings or losses. The fair value is calculated using a market approach and level 3 inputs. If the historical cost is more than the fair value at the end of the reporting period no adjustment is recorded, if the fair value is greater than the historical cost the value of the instrument is adjusted to the fair value with the offsetting amount recorded to retained earnings. The preferred redeemable noncontrolling interests are recorded at cost plus accrued dividends. Noncontrolling Interests The noncontrolling interests in the accompanying consolidated balance sheets reflect the original investments made by minority stockholders in certain subsidiaries of the Company. Noncontrolling interests acquired in a business combination are initially recorded at fair value. Subsequently, noncontrolling interests are adjusted for additional capital contributions, the minority stockholder’s proportional share of the earnings or losses, distributions to the minority stockholders and repurchases, by the Company, of such interests. Changes in Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss), by component, were as follows (in thousands): Projected Pension and Postretirement Benefit Translation Obligations Adjustment Other Total Balance at December 31, 2020 $ (570) $ 997 $ (149) $ 278 Unrecognized actuarial gain, net of tax of $(0.1) million 5,014 — — 5,014 Foreign currency translation adjustment — (689) — (689) Interest rate swap — — 170 170 Balance at December 31, 2021 4,444 308 21 4,773 Unrecognized actuarial gain, net of tax of $(0.2) million 2,428 — — 2,428 Pension settlement, net of tax of $(0.8) million 915 — — 915 Reclassification of foreign currency losses on investments sold, net of tax of $0.2 million — (500) — (500) Foreign currency translation adjustment — (1,385) — (1,385) Interest rate swap — — (21) (21) Balance at December 31, 2022 7,787 (1,577) — 6,210 Unrecognized actuarial gain, net of tax of $0 2,035 — — 2,035 Pension settlement, net of tax of $(0.2) million 195 — — 195 Reclassification of foreign currency losses on investments, net of tax of $0 — 1,348 — 1,348 Foreign currency translation adjustment — 229 — 229 Interest rate swap, net of tax of $0.6 million — — (1,749) (1,749) Balance at December 31, 2023 $ 10,017 $ — $ (1,749) $ 8,268 Amounts reclassified from accumulated other comprehensive income to net income for pension and other postretirement benefits plans were $0.2 million, $0.9 million, and $(34) thousand for the years ended December 31, 2023, 2022, and 2021, respectively. Additionally, Revenue Recognition The Company earns revenue from its telecommunication operations. The Company recognizes revenue through the following steps: - Identification of the contract with a customer - Identification of the performance obligations in the contract - Determination of the transaction price - Allocation of the transaction price to the performance obligations in the contract - Recognize revenue when, or as, the Company satisfies performance obligations Revenue Recognition- Communications Services Communication services consists of Mobility, Fixed, and Carrier Services revenue. Mobility revenue consists of revenue generated from providing mobile communication services to consumer and business subscribers over the Company’s wireless networks and the sale of related equipment to its subscribers. The service revenue generated is recognized over time as the service is rendered and revenues from equipment are recognized when the equipment is delivered to the customer. Fixed Communications revenue is primarily generated by fixed data and voice telecommunications services to both business and consumer subscribers. The service includes consumer broadband and high speed data solutions for businesses, as well as video services. Revenue from these contracts is recognized over time as the service is rendered to the customer. Fixed revenue also includes revenue from government grants and is recognized in accordance with the grant terms and conditions. For both Fixed and Mobility revenue contracts, management considers transactions where customers purchase subsidized or discounted equipment and services to be a single contract. For these contracts, the transaction price is allocated to the equipment and service based on their standalone selling prices. The standalone selling price is based on the amount the Company charges for the equipment and service to similar customers. Equipment revenue is recognized when the equipment is delivered to customers and service revenue is recognized as service is rendered. Carrier Services revenue is generated from providing services to other telecommunications providers such as wholesale roaming, the leasing of critical network infrastructure such as tower and transport facilities, site maintenance, and international long-distance services. Revenue is recognized over time as the service is rendered to the customer. In July 2019 the Company entered into a Network Build and Maintenance Agreement (the “FirstNet Agreement”) with AT&T Mobility, LLC (“AT&T”) to build a portion of AT&T’s network for the First Responder Network Authority (“FirstNet”) as well as a commercial wireless network in or near the Company’s current operating area in the western United States (the “FirstNet Transaction”). The FirstNet transaction includes construction and service performance obligations. The Company allocated the transaction price of the FirstNet Agreement to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. The construction revenue is recognized when the assets are delivered and the service revenue is recognized over time as the service is rendered to the customer. The current portion of receivables under this agreement is recorded in customer receivable and the long-term portion is recorded in customer receivable long-term on the Company’s balance sheet In May 2023, the Company amended its current roaming agreement and entered into a carrier management services agreement with Verizon Wireless (“Verizon CMS Agreement”). The transaction includes service performance obligations under which revenue is recognized over time. The Company allocates the transaction price of these agreements to each performance obligation based on the relative standalone selling price of each performance obligation in the contracts. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. The Company’s Mobility, Carrier Services, and Fixed communications contracts occasionally include promotional discounts such as free service periods or discounted products. If a contract contains a substantive termination penalty, the transaction price is allocated to the performance obligations based on a standalone selling price resulting in accelerated revenue recognition and the establishment of a contract asset that will be recognized over the life of the contract. If a contract includes a promotional discount but no substantive termination penalty, the discount is recorded in the promotional period and no contract asset is established. The Company’s customers also have the option to purchase additional telecommunication services. Generally, these options are not performance obligations and are excluded from the transaction price because they do not provide the customers with a material right. The Company may charge upfront fees for activation and installation of some of its products and services. These fees are reviewed to determine if they represent a separate performance obligation. If they do not represent a separate performance obligation, the transaction price associated with them is recognized over the life of the customer. If the fees represent a performance obligation they are recognized when delivered to the customer based on the standalone selling price. The Company has certain wholesale roaming agreements that contain stand ready performance obligations and management allocates transaction value to performance obligations based on the standalone selling price. The standalone selling price is the estimated price the Company would charge for the good or service with similar customers in similar circumstances. Management determined the performance obligations were obligations to make the service continuously available and will recognize revenue evenly over the service period. The Company also enters into build and maintenance agreements with its customers. The agreements include construction and service performance obligations. The Company allocates the transaction price to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. 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- Construction Construction revenue is generated from construction services provided to telecommunications customers. The Company recognizes revenue at a point in time when the product is delivered to the customer. Revenue Recognition-Other Revenue Other revenue consists of Managed Services revenue. Managed services revenue is generated from information technology services such as network, application, infrastructure, and hosting services to both business and consumer customers. The revenue is recognized as the service is delivered to customers. Contract Assets and Liabilities The Company recognizes contract assets and liabilities on its balance sheet. Contract assets represent unbilled amounts typically resulting from consumer mobility contracts with both a multiyear service period and a promotional discount. In these contracts the revenue recognized exceeds the amount billed to the customer. The current portion of the contract asset is recorded in prepayments and other current assets and the noncurrent portion is included in other assets on the Company’s balance sheet. Contract liabilities consist of advance payments and billings in excess of revenue recognized. Retail revenue for postpaid customers is generally billed in advance and recognized over the period that the corresponding service is rendered to customers. To the extent the service is not provided by the reporting date the amount is recognized as a contract liability. Prepaid service, including mobile voice and data services, sold to customers is recorded as deferred revenue prior to the commencement of services. The Company also records deferred revenue associated with prepaid service agreements to provide data capacity to customers. For these service agreements, a contract liability is established and recognized as revenue on a straight-line basis over the life of the agreement. The current portion of contract liabilities is recorded in advanced payments and deposits and the noncurrent portion is included in other liabilities on the Company’s balance sheets. The Company acquired $92.7 million of contract liabilities in its acquisition of Alaska Communications. This balance is being amortized into revenue over the remaining life of the revenue contracts. At December 31, 2023, million of this balance remains as a contract liability. Contract Acquisition Costs The Company pays sales commissions to its employees and agents for obtaining customer contracts. These costs are incremental because they would not have been incurred if the contract was not obtained. The Company recognizes an asset for these costs and subsequently amortizes the asset on a systematic basis consistent with the pattern of the transfer of the services to the customer. The amortization period, which is between , considers both the original contract period as well as anticipated contract renewals as appropriate. The amortization period also includes contract renewals when renewal commissions are not commensurate with new commissions. The Company estimates contract renewals based on its actual renewals in recent periods. When the expected amortization period is Leases The Company determines if an agreement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities in the Company’s consolidated balance sheets. Finance leases are included in property and equipment in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The present value is calculated using the Company’s incremental borrowing rate based on the information available at the commencement date, as the Company’s leases do not contain an implicit rate. The Company utilizes assumptions based on its existing borrowing facilities and other market specific data to determine its incremental borrowing rate. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include renewal options to extend the lease. The Company includes renewal options that are reasonably certain to be exercised in the initial lease term. When determining whether a renewal option is reasonably certain to be exercised, the Company considers several factors, including the present and anticipated future needs of its customers being serviced by the asset. Lease expense is recognized on a straight-line basis over the lease term. The Company does not separate non-lease components from lease components. The Company assists third parties in the government grant funding application process. Under these arrangements the Company is identified as a sub-recipient of the grant. The Company evaluates these agreements under lease accounting guidance. Generally, the Company provides construction and network operation services to the grant recipient. During the construction phase the Company records cash receipts and disbursements on its balance sheet and will not record a gain or loss on construction. Upon construction completion, the Company will record a finance lease asset which will include payments made to the lessor and exclude lease incentives. Operating Expenses Cost of communication services and other . Cost of communication services and other are charges that the Company incurs for voice and data transport circuits (in particular, the circuits between its Mobility sites) and its switches, internet capacity, video programming costs, access fees it pays to terminate its calls, telecommunication spectrum fees and direct costs associated within its Managed Services business. Cost of communication services also include expenses associated with developing, operating, upgrading and supporting the Company’s telecommunications networks, including the salaries and benefits paid to employees directly involved in the development and operation of those businesses, as well as credit loss allowances and the cost of handsets and customer resale equipment incurred by its retail businesses. Cost of construction revenue. Selling, general and administrative. Selling, general and administrative expenses include salaries and benefits we pay to sales personnel, customer service expenses and the costs associated with the development and implementation of our promotional and marketing campaigns. Selling, general and administrative expenses also include salaries, benefits and related costs for general corporate functions including executive management, finance and administration, legal and regulatory, facilities, information technology and human resources as well as internal costs associated with our performance of due-diligence and integration related costs associated with acquisition activities. Transaction-related charges. Restructuring expenses US International Telecom Telecom Total Employee termination benefits $ 1,960 $ 3,491 $ 5,451 Contract termination costs 5,777 — 5,777 Total $ 7,737 $ 3,491 $ 11,228 The charge is recorded in Restructuring Expenses on the Company’s Consolidated Income Statements. During the year ended December 31, 2023, the Company paid $5.7 million, recorded a gain of $0.3 million on lease termination, and accrued $5.8 million of the restructuring expenses. In conjunction with the restructuring, the Company terminated $5.6 million of lease right of use assets and $5.9 million of lease liabilities from its balance sheet. Depreciation and amortization expenses. Amortization of intangibles from acquisitions. Goodwill impairment. The Company assesses goodwill for impairment on an annual basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. (Gain) loss on disposition of assets and contingent consideration. The Company sells or disposes assets from time to time. A gain or loss is recorded by comparing the carrying amount of the assets to the proceeds received. The Company also records losses on assets held for sale if the expected sale price exceeds the carrying value of the assets. A gain or loss is also recorded on changes in the fair value of asset or liability classified contingent consideration from business combinations in the postcombination period. Accounting for Grants In 2021, the Company adopted Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, which required entities to make specific annual disclosures about transactions with a government. The Company receives funding from the US Government and its agencies under stimulus, the Universal Service Fund (“USF”), the Secure and Trusted Communications Networks Reimbursement Program, and other programs. These funding programs are generally designed to fund telecommunications operations and infrastructure expansion into rural or underserved areas. The funding programs are evaluated to determine if they represent funding related to revenue, capital expenditures or operating activities. Funding for revenue and operating activities are recorded as revenue or contra expense in the Company’s consolidated income statement as the services are provided. Funding for capital expenditures is recorded as a reduction to property, plant and equipment on the Company’s consolidated balance sheets and a future reduction in depreciation expense in the consolidated income statements. Government funding related to revenue and operations are recorded as operating cash inflows and grants for capital expenditures are recorded as investing cash inflows. The Company monitors governme |
REVENUE AND RECEIVABLES
REVENUE AND RECEIVABLES | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE AND RECEIVABLES | |
REVENUE AND RECEIVABLES | 3. REVENUE AND RECEIVABLES Revenue Accounted for in Accordance with Other Guidance The Company records revenue in accordance with ASC 606 from contracts with customers and ASC 842 from lease agreements, as well as government grants. Lease revenue recognized under ASC 842 is disclosed in Note 4 and government grant revenue is disclosed in Note 9. Timing of Revenue Recognition Revenue accounted for in accordance with ASC 606 consisted of the following for the periods presented below . Year Ended 2023 2022 2021 Services transferred over time US Telecom $ 326,966 $ 301,309 $ 188,405 International Telecom 347,769 332,507 319,357 Solar - - 418 Total 674,735 633,816 508,180 Goods and services transferred at a point in time US Telecom 18,059 29,203 46,433 International Telecom 17,086 14,934 10,928 Total 35,145 44,137 57,361 Total revenue accounted for under ASC 606 709,880 677,953 565,541 Contract Assets and Liabilities Contract assets and liabilities consisted of the following (amounts in thousands): December 31, 2023 December 31, 2022 $ Change % Change Contract asset – current $ 3,616 $ 2,932 $ 684 23.3 % Contract asset – noncurrent 5,509 3,775 1,734 45.9 % Contract liability – current (30,990) (27,284) (3,706) 13.6 % Contract liability – noncurrent (64,035) (72,543) 8,508 (11.7) % Net contract liability $ (85,900) $ (93,120) $ 7,220 (7.8) % The contract asset-current is included in prepayments and other current assets, the contract asset-noncurrent is included in other assets, the contract liability-current is included in advance payments and deposits, and the contract liability-noncurrent is included in deferred revenue, long-term on the Company’s balance sheet. The decrease in the Company’s net contract liability was due to the recognition of contract liabilities as revenue during the year ended December 31, 2023. During the year ended December 31, 2023, the Company recognized revenue of million of the December 31, 2022 contract asset into revenue. During the year ended December 31, 2022, the Company recognized revenue of million of the December 31, 2021 contract asset into revenue. The Company did t recognize any revenue in the years ended December 31, 2022 and 2021 related to performance obligations that were satisfied or partially satisfied in previous periods. Contract Acquisition Costs The December 31, 2023 balance sheet includes contract acquisition costs of $11.3 million in other assets. The December 31, 2022 balance sheet includes contract acquisition costs of million. During the years ended December 31, 2023, 2022 and 2021 the Company amortized Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to unsatisfied performance obligations of certain multiyear mobility contracts, which include a promotional discount, and the Company’s construction and service contracts. The transaction price allocated to unsatisfied performance obligations was million at December 31, 2023 and December 31, 2022, respectively. The Company expects to satisfy approximately p p r o x i m a t e l million annually from 2026 through 2031. The Company has certain mobility and carrier services contracts where transaction price is allocated to remaining performance obligations. However, the Company omits these contracts from the disclosure by applying the right to invoice, one year or less, any wholly unsatisfied performance obligation practical expedients. Disaggregation The Company's revenue is presented on a disaggregated basis in Note 14 based on an evaluation of disclosures outside the financial statements, information regularly reviewed by the chief operating decision maker for evaluating the financial performance of operating segments and other information that is used for performance evaluation and resource allocations. This includes revenue from Communication Services revenue, Construction revenue and Other revenue. Communication Services is further disaggregated into Mobility, Fixed, Carrier Services, and Other revenue. Construction revenue represents revenue generated within our US Telecom segment for the construction of network cell sites related to the FirstNet Agreement. Other revenue is further disaggregated Managed Services. Each of the revenue streams is presented for the Company’s International Telecom and US Telecom segments. This disaggregation of revenue depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Receivables At December 31, 2023, the Company had gross accounts receivable of $207.9 million and an allowance for credit losses of $16.4 million. The receivable under the FirstNet Agreement totaled million was long-term. The December 31, 2023 accounts receivable also includes million related to participation in certain government funded programs. (Refer to Note 9). At December 31, 2022, the Company had gross accounts receivable of million was long-term. The Company monitors receivables through the use of historical operating data adjusted for expectation of future performance as appropriate. The December 31, 2022 accounts receivable also includes million related to participation in certain government funded programs. Activity in the allowance for credit losses is below: Year ended December 31, 2023 December 31, 2022 Balance at beginning of period $ 15,171 $ 13,885 Current period provision for expected losses 5,012 6,695 Write-offs charged against the allowance (4,340) (5,518) Recoveries collected 519 109 Balance at end of period $ 16,362 $ 15,171 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
LEASES | 4. LEASES The Company has operating and financing leases for towers, land, corporate offices, retail facilities, and data transport capacity. The terms of the leases vary and some include additional renewal options. Supplemental lease information The components of lease expense were as follows (in thousands): Year ended December 31, 2023 December 31, 2022 December 31, 2021 Operating lease cost: Operating lease cost $ 23,232 $ 24,531 $ 20,386 Short-term lease cost 2,866 2,575 2,402 Variable lease cost 4,896 3,186 3,874 Total operating lease cost $ 30,994 $ 30,292 $ 26,662 Finance lease cost: Amortization of right-of-use asset $ 2,930 $ 3,060 $ 2,561 Variable costs 814 838 792 Interest costs 372 381 — Total finance lease cost $ 4,116 $ 4,279 $ 3,353 During the year ended December 31, 2023 and 2022, the Company paid $19.8 million and million, respectively, related to operating lease liabilities. Also during the years ended December 31, 2023 and 2022, the Company recorded million, respectively, of lease liabilities arising from ROU assets. In addition, during the year ended December 31, 2022, the Company acquired million of operating lease assets and million of lease liabilities in acquisitions. During the year ended December 31, 2021, the Company acquired million of lease liabilities in acquisitions. Refer to Note 5. At December 31, 2023, finance leases with a cost of $31.7 million and accumulated amortization of $16.4 million were included in property, plant and equipment. During the year ended December 31, 2023, the Company paid million was classified as an investing cash outflow. At December 31, 2023, finance leases had a lease liability of million was current. At December 31, 2022, finance leases with a cost of million. At December 31, 2022, finance leases had a lease liability of The weighted average remaining lease terms and discount rates as of December 31, 2023 and December 31, 2022 are noted in the table below: December 31, 2023 December 31, 2022 Weighted-average remaining lease term Operating leases 13.3 years 12.4 years Financing leases 9.2 years 9.3 years Weighted-average discount rate Operating leases 6.3% 6.0% Financing leases 6.6% 6.7% Maturities of lease liabilities as of December 31, 2023 were as follows (in thousands): Operating Leases Financing Leases 2024 18,048 2,030 2025 16,022 1,488 2026 11,755 601 2027 9,327 534 2028 7,807 505 Thereafter 80,637 2,145 Total lease payments 143,596 7,303 Less imputed interest (57,133) (1,662) Total $ 86,463 $ 5,641 Maturities of lease liabilities as of December 31, 2022 were as follows (in thousands): Operating Leases Financing Leases 2023 $ 19,417 $ 1,403 2024 17,836 1,342 2025 14,805 978 2026 10,505 504 2027 8,096 495 Thereafter 76,452 2,651 Total lease payments 147,111 7,373 Less imputed interest (53,794) (1,914) Total $ 93,317 $ 5,459 As of December 31, 2023, the Company entered into a finance lease for an undersea fiber optic cable in its International Telecom segment. The Company will make total lease payments of million was paid at December 31, 2023. The lease will commence in the second quarter of 2024. Lessor Disclosure The Company is the lessor in agreements to lease the use of its network assets including its cell sites and buildings. For the years ended December 31, 2023, 2022, and 2021 the Company recorded and $4.5 million, respectively, of lease income from agreements in which the Company is the lessor. The following table presents the maturities of future undiscounted lease payments for the periods indicated: 2024 $ 7,039 2025 6,760 2026 6,398 2027 5,212 2028 4,865 Thereafter 12,510 Total future lease payments $ 42,784 |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2023 | |
ACQUISITIONS AND DISPOSITIONS | |
ACQUISITIONS AND DISPOSITIONS | 5. ACQUISITIONS AND DISPOSITIONS US Telecom Acquisition of Sacred Wind Enterprises On November 7, 2022, the Company’s wholly owned subsidiary Alloy acquired all of the issued and outstanding stock of Sacred Wind Enterprises, Inc. (“Sacred Wind”), Inc., a rural telecommunications provider in New Mexico for $44.6 million of consideration (“Sacred Wind Transaction”). The purchase price allocation was finalized during the year ended December 31, 2023. As part of the Sacred Wind Transaction, the Company transferred consideration of million of contingent consideration. During the year ended December 31, 2023, the Company received million as final settlement of working capital amounts. The Company funded the acquisition with borrowings under its CoBank Credit Facility and assumed million of Sacred Wind debt, to the United States of America administered through the Rural Utilities Service. Upon completion of the Sacred Wind Transaction, the former Sacred Wind shareholders will own of the Alloy equity. This equity is classified as redeemable noncontrolling interests in the Company’s financial statements because the holders have an option, beginning in 2026, to put the equity interest to a subsidiary of the Company at the then fair market value. The redeemable noncontrolling interests do not have preference relative to other equity units and participate in gains and losses in Alloy. The contingent consideration is earned based on certain operating metrics of Sacred Wind beginning in 2025 through 2027. During the year ended December 31, 2023, Sacred Wind made substantial progress toward achieving the relevant operating metrics and, as a result, the contingent consideration increased by million. Such increase in the contingent consideration is included in the Loss on Disposition of Assets and Contingent Consideration on the Company’s Consolidated Income Statement. The fair value of the contingent consideration was calculated using discounted cash flow analysis based on a range of probability weighted outcomes. The table below represents the purchase price allocation of the total consideration transferred to the acquired assets and assumed liabilities based on management’s estimate of their acquisition date fair values (amounts in thousands): Consideration Transferred $ 44,560 Purchase price allocation: Cash and cash equivalents 2,619 Restricted cash 6,747 Current assets 4,888 Operating lease right of use assets 989 Fixed assets 85,255 Intangible assets 1,232 Current liabilities (10,176) Lease liabilities (967) Deferred taxes (14,388) Debt (31,639) Net assets acquired $ 44,560 The acquired fixed assets are comprised of telecommunication equipment located in the Southwest United States. The fixed assets were valued using the income and cost approaches. Cash flows were discounted between 7% and 12% based on the risk associated with the cash flows to determine fair value under the income approach. The fixed assets have useful lives ranging from 1 to 25 years. The intangible assets include a $0.6 million trade name. The estimated fair value of the trade name was determined using the relief from royalty method. The useful life of the trade name is 5 years. The acquired receivables consist of trade receivables incurred in the ordinary course of business. The Company expects to collect the full amount of the receivables. Other liabilities includes $6.5 million of deposits received under government grant programs and will be used to construct fixed assets in future periods. The Company’s statement of operations for the year ended December 31, 2022 includes $3.3 million of revenue and $0.2 million of losses before taxes attributable to the Sacred Wind Transaction. The Company incurred $0.8 million of transaction related charges pertaining to legal, accounting, consulting services, and employee related costs associated with the transaction during the year ended December 31, 2022. Acquisition of Alaska Communications On July 22, 2021 (“Closing Date”), the Company completed the acquisition of Alaska Communications pursuant to the terms of the Merger Agreement whereby Alaska Communications became a consolidated subsidiary of the Company. At completion of the Merger, each Alaska Communications common share was converted into the right to receive $3.40 per share in cash representing a total value of $353.3 million of cash and consideration payable, (“Merger Consideration”). The consideration transferred consists of $339.5 million of cash, net of $11.9 million of cash and restricted cash acquired and $1.9 million of accrued consideration representing amounts payable related to stock compensation payable within one year of the close date. The cash consideration was used to purchase $186.8 million of Alaska Communications equity and repay $164.6 million of existing Alaska Communications debt. The Company funded the acquisition with cash on hand, debt, and a contribution from the Freedom 3 Investors. The Company borrowed, through multiple financing transactions a net of $283 million. On the Closing Date, the lenders advanced to Merger Sub (a) the full $210 million aggregate amount of the Alaska Term Loan (as defined below) in a single borrowing and (b) $10 million of the Alaska Revolving Facility (as defined below). The Company incurred $6.6 million of debt issuance and debt discount costs. Also, to fund the Merger Consideration in part, the Company drew a net $63.0 million under its revolving credit facility under the 2019 CoBank Credit Facility (as defined below). Lastly, the Freedom 3 Investors contributed $71.5 million in conjunction with the Merger. The Company has accounted for the Freedom 3 Investment as redeemable noncontrolling interests in its consolidated financial statements. The redeemable noncontrolling interests consists of $22.6 million of redeemable common units and $48.3 million of redeemable preferred units. The common units contain a put option allowing the holder to sell the common units to a subsidiary of the Company at the then fair market value. The put option begins at the earlier of a future initial public offering of the Alaska Communications operations or July 2028. The redeemable preferred units carry a 9% preferred dividend which compounds quarterly. The preferred units contain a put option allowing the holder to sell the preferred units to a subsidiary of the Company at the unpaid issue price plus unpaid dividends. The put option begins at the earlier of a future initial public offering of the Alaska Communications operations or July 2028. Lastly, the Company issued warrants in the Alaska Communications operations allowing the holders to purchase an additional 3% of the common units at a fixed price. As a result of the Alaska Transaction, the Company owns 52% of the common equity of Alaska Communications and controls its operations and management. The table below represents the allocation of the total consideration transferred to the acquired assets and assumed liabilities based on management’s estimate of their acquisition date fair values (amounts in thousands): Consideration Transferred $ 353,280 Noncontrolling interests 470 Total value to allocate 353,750 Purchase price allocation: Cash and cash equivalents 10,553 Restricted cash 1,326 Short-term investments 434 Accounts receivable 30,453 Inventory, materials and supplies 1,374 Prepayments and other current assets 8,038 Fixed assets 408,694 Telecommunication licenses 683 Intangible assets 44,333 Operating lease right-of-use assets 60,402 Other assets 2,387 Accounts payable and accrued liabilities (39,188) Accrued taxes (3,766) Advance payments and deposits (15,842) Current portion of lease liabilities (2,425) Deferred income taxes (17,040) Lease liabilities, excluding current portion (44,234) Other liabilities (92,432) Net assets acquired $ 353,750 The acquired fixed assets are comprised of telecommunication equipment located in the Alaska and the Western United States. The fixed assets were valued using the income and cost approaches. Cash flows were discounted between 4% and 14% based on the risk associated with the cash flows to determine fair value under the income approach. The fixed assets have useful lives ranging from 2 to 30 years. The intangible assets consist of $34.9 million of customer relationships and $9.5 million of trade name. The intangibles were valued using an income approach based on data specific to Alaska Communications as well as market participant assumptions where appropriate. The estimated fair value of the customer relationships was determined using the multi-period excess earnings method. The estimated fair value of the trade name was determined using the relief from royalty method. The useful lives of the customer relationships and trade name are 5 and 15 years, respectively. The acquired receivables consist of trade receivables incurred in the ordinary course of business. The Company expects to collect the full amount of the receivables. Other liabilities includes $81.5 million of deferred revenue from long term customer contracts. The Company adopted ASU 2021-08 in 2021, which requires contract liabilities to be accounted for consistently with how they were recognized and measured in the acquiree’s financial statements. As a result, the acquired deferred revenue was recorded at Alaska Communications’ book value as of the Closing Date. The Company’s statement of operations for the year ended December 31, 2021 includes $110.5 million of revenue and $4.7 million of losses before taxes attributable to the Alaska Transaction, excluding transaction fees. The Company incurred $10.5 million of transaction related charges pertaining to legal, accounting, consulting services, and employee related costs associated with the transaction, of which $9.6 million and $0.9 million were incurred during the year ended December 31, 2021 and 2020, respectively. The following table reflects unaudited pro forma operating results of the Company for the year ended December 31, 2021 assuming that the Alaska Transaction occurred on January 1, 2020. The unaudited pro forma amounts adjust Alaska Communications’ results to reflect the depreciation and amortization that would have been recorded assuming the fair value adjustments to fixed assets and intangible assets had been applied from January 1, 2020. Additionally, all transaction costs associated with the Alaska Transaction were recorded on January 1, 2020 in the unaudited pro forma results. Lastly, the unaudited pro forma results were adjusted to reflect changes to the acquired entities’ financial structure related to the transaction. Specifically, the pre-Close debt of $164.6 million, and associated interest, was removed and $283.0 million of transaction debt, and associated interest, was included in the unaudited pro forma results. In addition, the pro forma results included the allocation of income and accrual of preferred dividends to the redeemable noncontrolling interest. (unaudited) Year ended December 31, 2021 As Pro- Reported Forma Revenue $ 602,707 $ 738,472 Net loss attributable to ATN International, Inc. Stockholders (22,108) (20,022) Earnings per share: Basic (1.52) (1.26) Diluted (1.52) (1.26) The unaudited pro forma adjustments increased net loss attributable to ATN International, Inc. Stockholders by $2.1 million for the year ended December 31, 2021. The increase was due to an increase from the net income of the Alaska Communications operations excluding transaction costs less increased acquisition related depreciation and amortization expenses. The unaudited pro forma data is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have occurred if the acquisitions had been consummated on these dates or of future operating results of the combined company following this transaction. Renewable Energy Disposition of International Solar Business In January 2021, the Company completed the sale of of the outstanding equity in its business that owns and operates distributed generation solar power projects operated under the Vibrant name in India (the “Vibrant Transaction”). Consideration Received $ 35,218 Assets and liabilities disposed Current assets 4,899 Property, plant and equipment 45,891 Other assets 439 Current liabilities (759) Net assets disposed $ 50,470 Consideration less net assets disposed (15,252) Foreign currency losses reclassified from accumulated other comprehensive income (6,258) Loss on sale (21,510) Transaction costs (1,283) Loss on sale including transaction costs $ (22,793) The Company reported a loss on sale of $21.5 million during the year ended December 31, 2020 due to the Vibrant Transaction and the assets and liabilities subject to the Vibrant Transaction were reported as held for sale at December 31, 2020. The Company recorded transaction costs of $1.3 million on the Vibrant Transaction, of which $0.7 million was recorded during the year ended December 31, 2020 and $0.6 million was recorded during the year ended December 31, 2021. The consideration received includes $19.5 million of cash and $3.9 million of receivables related to the amounts held in escrow and earn out consideration. The Company has recorded $11.8 million pursuant to an equity method investment with respect to its remaining ownership interest in Vibrant. The Company completed its assessment of earn out and escrow amounts in 2023. During the year ended December 31, 2023, the Company recorded a gain of $2.6 million related to contingent consideration. During the years ended December 31, 2022 and 2021, the Company recorded losses of million related to the contingent consideration assessment. During 2022, the Company received The Vibrant Transaction does not qualify as discontinued operations because the disposition was not a strategic shift which will have a major effect on the Company’s operations, and as a result, the historical results and financial position of the operations are presented within continuing operations. |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
FIXED ASSETS: | |
FIXED ASSETS: | 6. FIXED ASSETS: As of December 31, 2023 and 2022, property, plant and equipment consisted of the following (in thousands): Useful Life (in Years) 2023 2022 Telecommunications equipment and towers 5 -15 $ 1,539,533 $ 1,479,633 Office and computer equipment 3 -10 148,693 151,804 Buildings 15-39 138,243 136,145 Transportation vehicles 3 -10 27,480 27,879 Leasehold improvements Shorter 22,424 22,934 Land — 11,652 11,308 Furniture and fixtures 5 -10 11,438 11,592 Total property, plant and equipment 1,899,463 1,841,295 Construction in progress 192,815 136,683 Total property, plant and equipment 2,092,278 1,977,978 Less: Accumulated depreciation (1,011,619) (922,024) Net fixed assets $ 1,080,659 $ 1,055,954 Depreciation and amortization of fixed assets, using the straight-line method over the assets’ estimated useful life, for the years ended December 31, 2023, 2022 and 2021 was $141.6 million, $135.1 million and $102.7 million, respectively. Included within telecommunication equipment and towers are certain right to use assets under capital lease with a cost of million, as of December 31, 2023 and 2022, respectively. For the years ended December 31, 2023 and 2022, the Company received capital expenditure grants of $31.9 million and $2.9 million, respectively, which are reflected in the balance sheet as a reduction to property, plant and equipment. The Company had $8.1 million and $5.6 million of capitalized implementation costs at December 31, 2023 and 2022, respectively. The Company amortized |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 7. GOODWILL AND INTANGIBLE ASSETS Goodwill The Company tests goodwill for impairment at each of its reporting units on an annual basis, which has been determined to be as of October 1st. The Company’s reporting units are one level below its operating segments. 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’s qualitative goodwill impairment test includes, but is not limited to, assessing macroeconomic conditions, industry and market considerations, technological changes and trends, and overall financial performance of the reporting unit. The Company’s quantitative test for goodwill impairment involves a comparison of the estimated fair value of a reporting unit to its carrying amount, including goodwill. The Company determines the fair value of a reporting unit using the income approach. The income approach is based on a discounted cash flow (“DCF”) model. The DCF model requires the exercise of significant judgment, including judgments and assumptions about appropriate discount rates and revenue growth. 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 revenue growth and cash flows employed in the DCF model were derived from internal earnings and forecasts and external market forecasts. For its annual impairment analysis, as of October 1, 2023, the Company performed a quantitative analysis for the goodwill held in its US Telecom and International Telecom segments. The US Telecom segment holds . The Company’s analysis noted that its US Telecom segment continues to shift away from wholesale roaming and retail operations towards carrier managed services and fixed broadband services. Additionally, the reporting unit is executing several significant network upgrade projects concurrently. The success of these initiatives may materially impact the results of the reporting unit valuation. The inability to meet forecasts may result in an impairment loss. For the International Telecom segment the quantitative analysis was completed using a DCF model and determined that the fair value of each reporting unit significantly exceeded its carrying value, including goodwill. The impairment analysis concluded that For its annual impairment analysis, as of October 1, 2022, the Company performed a quantitative analysis for the goodwill held in its US Telecom and a qualitative analysis for the goodwill held in its International Telecom segment. The Company’s analysis concluded that During the year ended December 31, 2021, the Company recorded an impairment of $20.6 million in its International Telecom segment. The Company’s impairment analysis for its remaining reporting units determined that no impairment was necessary in 2021. The table below discloses goodwill recorded in each of the Company’s segments and accumulated impairment changes (in thousands): International US Telecom Telecom Consolidated Balance at December 31, 2022 Gross $ 25,423 $ 35,268 $ 60,691 Accumulated Impairment (20,587) — (20,587) Net 4,836 35,268 40,104 Balance at December 31, 2023 Gross 25,423 35,268 60,691 Accumulated Impairment (20,587) — (20,587) Net $ 4,836 $ 35,268 $ 40,104 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 October 1st. 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’s qualitative impairment test includes, but is not limited to, assessing macroeconomic conditions, industry and market considerations, technological changes and trends, overall financial performance, and legal and regulatory changes. The Company’s quantitative test for impairment involves a comparison of the estimated fair value of an asset to its carrying amount. The Company determines the fair value using either a market or income approach. The market approach uses prices generated by market transactions involving comparable assets. The income approach uses a DCF model. The DCF requires the exercise of significant judgement including Level 3 valuation inputs. The Company performed a quantitative assessment for certain International Telecom reporting units and qualitative assessments for its remaining reporting units during its annual impairment assessment of its indefinite lived telecommunication licenses in 2023. The quantitative assessment was performed using a Greenfield Approach. The Greenfield Approach assumes a company initially owns only the telecommunication licenses, and then makes investments required to build an operation comparable to the one that currently utilizes the licenses. The projected cash flows are based on certain factors, including revenue growth rates, margins, subscriber churn rates, and other operational data. The Company used a WACC of in the analysis. The Company determined that there were no indications of potential impairment. The Company performed qualitative assessments for its annual impairment assessment of its indefinite lived telecommunications licenses for 2022 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, were as follows (in thousands): International US Telecom Telecom Consolidated Balance at December 31, 2021 $ 34,798 $ 78,968 $ 113,766 Acquired licenses — 1,068 1,068 Dispositions — (1,136) (1,136) Balance at December 31, 2022 $ 34,798 $ 78,900 $ 113,698 Acquired licenses — — — Dispositions — (379) (379) Balance at December 31, 2023 $ 34,798 $ 78,521 $ 113,319 The licenses acquired during 2022 are expected to be available for use into perpetuity. The Company recognized a gain of Customer Relationships The customer relationships are being amortized on an accelerated basis, over the expected period during which their economic benefits are to be realized. The Company recorded $11.1 million, $11.6 million, and $7.0 million of amortization related to customer relationships during the years ended December 31, 2023, 2022, and 2021, respectively. Future amortization of customer relationships is as follows (in thousands): International Telecom US Telecom 2024 $ 576 $ 5,748 2025 576 2,779 2026 576 — 2027 576 — 2028 275 — Thereafter 62 — Total $ 2,641 $ 8,527 Other Intangible Assets Other intangible assets includes $8.4 million and $9.7 million of trade names on the Company’s balance sheet as of December 31, 2023 and 2022, respectively. The Company recorded The tradenames have definite lives and future amortization of the tradenames are as follows: International Telecom US Telecom 2024 $ 307 $ 964 2025 307 879 2026 209 769 2027 37 718 2028 — 657 Thereafter — 3,570 Total $ 860 $ 7,557 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2023 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 8. LONG-TERM DEBT 2023 CoBank Credit Facility On July 13, 2023, the Company, along with certain of its subsidiaries as guarantors, entered into a new Credit Agreement with CoBank, ACB and a syndicate of other lenders (as may be amended from time to time, the “2023 CoBank Credit Facility”). The 2023 CoBank Credit Facility provides for a five-year $170 million revolving credit facility (the “2023 CoBank Revolving Loan”) and a six-year $130 million term loan facility (the “2023 CoBank Term Loan”). The Company may use (i) up to $25 million under the 2023 CoBank Credit Facility for letters of credit, and (ii) up to $20 million under a swingline sub-facility. Upon the closing of the 2023 CoBank Credit Facility, the Company drew all of the 2023 CoBank Term Loan and approximately $13.6 million of the 2023 CoBank Revolving Loan. These borrowings were used to repay $139.5 million of debt outstanding under the 2019 CoBank Credit Facility at close. The 2023 CoBank Term Loan must be repaid in quarterly principal payments in the amounts set forth below, with the outstanding principal balance maturing on July 13, 2029. The 2023 CoBank Revolving Loan may be repaid at any time on or prior to its maturity on July 13, 2028. All amounts outstanding under the 2023 CoBank Credit Facility will be due and payable upon the earlier of the maturity date or the acceleration of the loans and commitments upon an event of default. 2023 CoBank Term Loan Quarterly Payment Dates 2023 CoBank Term Loan Quarterly Repayments December 31, 2023 – June 30, 2025 $812,500 (2.5% per annum) December 31, 2025 – June 30, 2026 $1,625,000 (5% per annum) December 31, 2026 – June 30, 2029 $2,437,500 (7.5% per annum) Amounts borrowed under the 2023 CoBank Credit Facility bear interest at a rate equal to, at the Company’s option, either (i) the secured overnight financing rate as administered by the Federal Reserve Bank of New York (SOFR) plus an applicable margin ranging between 2.00% to 3.75% for the 2023 CoBank Term Loan or 1.75% to 3.50% for Revolving Loans or (ii) a base rate plus an applicable margin ranging from 1.00% to 2.75% for the Term Loan or 0.75% to 2.50% for the 2023 CoBank Revolving Loans. 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 one-month SOFR rate (ii) the federal funds effective rate (as defined in the 2023 CoBank Credit Agreement) plus 0.50% per annum; and (iii) the prime rate (as defined in the 2023 CoBank Credit Agreement). The applicable margin is determined based on the ratio (as further defined in the 2023 CoBank Credit Agreement) of the Company’s indebtedness to EBITDA. Under the terms of the 2023 CoBank Credit Agreement, the Company must also pay a fee ranging from 0.25% to 0.50% on the average daily unused portion of the 2023 CoBank Credit Facility over each calendar quarter. The 2023 CoBank Credit Agreement contains a financial covenant (as further defined in the 2023 CoBank Credit Agreement) that imposes a maximum ratio of indebtedness to EBITDA, as well as customary representations, warranties and covenants, including covenants limiting additional indebtedness, liens, guaranties, mergers and consolidations, substantial asset sales, investments and loans, sale and leasebacks, transactions with affiliates and fundamental changes. The Total Net Leverage Ratio is measured each fiscal quarter and is required to be less than or equal to The 2023 CoBank Credit Agreement provides for events of default customary for credit facilities of this type, including but not limited to non-payment, defaults on other debt, misrepresentation, breach of covenants, representations and warranties, insolvency and bankruptcy. The Company capitalized $4.2 million of fees associated with the 2023 CoBank Credit Facility which are being amortized over the life of the debt and $3.8 million were unamortized as of December 31, 2023. The Company had $129.2 million outstanding under the 2023 CoBank Term Loan as of December 31, 2023. Under the 2023 CoBank Revolving Loan, the Company had $33.6 million outstanding and $136.4 million of availability as of December 31, 2023. The Company was in compliance with all financial covenants as of December 31, 2023. In October 2023, the Company entered a two year , forward starting 1-month floating to fixed SOFR interest rate swap agreement. The swap was effective November 13, 2023 in a non-amortizing notional amount of 2019 CoBank Credit Facility On April 10, 2019, the Company entered into a credit facility, with CoBank, ACB and a syndicate of other lenders (as amended, the “2019 CoBank Credit Facility”). The 2019 CoBank Credit Facility provided for a million under a swingline sub-facility. In connection with the execution of the 2023 CoBank Credit Facility, as defined above, outstanding borrowings under the 2019 CoBank Credit Facility were repaid in full. Amounts borrowed under the 2019 CoBank Credit Facility bore interest at a rate equal to, at the Company’s option, either (i) the London Interbank Offered Rate (“LIBOR”) plus an applicable margin ranging between 1.25% to 2.25% or (ii) a base rate plus an applicable margin ranging from 0.25% to 1.25% . Swingline loans bore interest at the base rate plus the applicable margin for base rate loans. The base rate was equal to the higher of (i) of the average daily unused portion of the 2019 CoBank Credit Facility over each calendar quarter. Letter of Credit Facility On November 14, 2022, the Company entered into a General Agreement of Indemnity to issue performance Standby Letters of Credit on behalf of the Company and its subsidiaries. As of December 31, 2023, Alaska Credit Facility On July 22, 2021, Alaska Communications entered into a Credit Agreement (the “Alaska Credit Facility”) with Fifth Third Bank, National Association, as Administrative Agent, and a syndicate of lenders to provide a $35.0 million revolving facility (the “Alaska Revolving Facility”) and a $210.0 million initial term loan facility (the “Alaska Term Loan”). On December 23, 2022, Alaska Communications entered into a First Amendment Agreement (the “ACS Amendment”). The ACS Amendment amends the Alaska Credit Facility to increase its Revolving Credit Commitment from $35.0 million to $75.0 million and Term Loan Commitment from $210.0 million to $230.0 million. As a part of the transaction, the Term Loan commitment was fully funded as the outstanding Revolving Credit Commitment balance was transferred. As of December 31, 2023, Alaska Communications had drawn $35.0 million on its Revolving Credit Commitment and had $40.0 million available to draw. The Term Loan balance was In addition to the above changes, the ACS Amendment replaced the calculation of interest from an applicable margin applied to LIBOR with the same applicable margin applied to the Secured Overnight Financing Rate (“SOFR”) plus a 10-basis point adjustment. The Company capitalized $7.3 million of fees associated with the Alaska Credit Facility which are being amortized over the life of the debt and $3.9 million were unamortized as of December 31, 2023. The Alaska Credit Facility also provides for incremental facilities up to an aggregate principal amount of the greater of $70.0 million and Alaska Communications’ trailing twelve-month Consolidated EBITDA (as defined in the Alaska Credit Facility). The key terms and conditions of the Alaska Credit Facility include the following: ● Amounts outstanding bear an interest rate of the forward-looking SOFR rate with a one-month interest period, plus the SOFR Spread Adjustment of 10 basis points, plus a margin ranging from 3.00% to 4.00% based on Alaska Communications’ Consolidated Total Net Leverage Ratio (as defined in the Credit Agreement) or an alternate base rate may be selected at a margin that is 1% lower than the counterpart SOFR margin; ● Principal repayments are due quarterly and commenced in the fourth quarter of 2023 in quarterly amounts as follows: from the fourth quarter of 2023 through the third quarter of 2024, $1.4 million; and from the fourth quarter of 2024 through the third quarter of 2026, $2.9 million. The remaining unpaid balance is due on the final maturity date; ● Alaska Communications is required to maintain financial ratios as defined in the Alaska Credit Facility, including (a) a maximum Consolidated Net Total Leverage Ratio of 4.00 to 1, stepping down to 3.75 to 1 beginning with the second quarter of 2024; and (b) a minimum Consolidated Fixed Charge Coverage Ratio of not less than 1.25 to 1; and ● The Alaska Credit Facility is non-recourse to the Company and is secured by substantially all of the personal property and certain material real property owned by Alaska Communications. Alaska Communication’s interest rate swap, which had been designated as a cash flow hedge with an interest rate of 1.6735% , expired on June 30, 2022. In November 2023, Alaska Communications entered Alaska Term Facility On June 15, 2022, Alaska Communications Systems Holdings, the parent company of Alaska Communications, entered into a secured lending arrangement with Bristol Bay Industrial, LLC (the “Alaska Term Facility”). The Alaska Term Facility provides for a secured delayed draw term loan in an aggregate principal amount of up to $7.5 million and the proceeds may be used to pay certain invoices from a contractor for work performed in connection with a fiber build. Interest on the Alaska Term Facility accrues at a fixed rate of 4.0% and is payable commencing on March 31, 2023. Scheduled quarterly payments of principal commenced on March 31, 2023. The Alaska Term Facility matures on June 30, 2024. The Alaska Term Facility contains events of default customary for facilities of this type. As of December 31, 2023, the Company had $6.0 million outstanding and no available borrowings under the Alaska Term Facility. FirstNet Receivables Credit Facility On March 26, 2020, Commnet Finance, a wholly owned subsidiary of Commnet Wireless, entered into a receivables credit facility with the Company, Commnet Wireless, and CoBank, ACB (the “Receivables Credit Facility”). The Receivables Credit Facility provides for a senior secured delayed draw term loan in an aggregate principal amount of up to $75.0 million and the proceeds may be used to acquire certain receivables from Commnet Wireless. The receivables to be financed and sold under the Receivables Credit Facility, which provide the loan security, relate to the obligations of AT&T under the FirstNet Agreement. On December 19, 2023, CoBank amended the Receivables Credit Facility and extended the delayed draw period to December 31, 2024. The maturity date for each loan will be set by CoBank and will match the weighted average maturity of the certain receivables financed. Interest on the loans accrue at a fixed annual interest rate to be quoted by CoBank. The Receivables Credit Facility contains customary events of termination, representations and warranties, affirmative and negative covenants and events of default customary for facilities of this type. As of December 31, 2023, Commnet Wireless had $46.5 million outstanding, of which $7.1 million was current, and $15.0 million of availability under the Receivables Credit Facility. Commnet Wireless capitalized GTT Credit Facilities On October 12, 2022, GTT received approval from Republic Bank (Guyana) Limited for a $2.9 million term facility and a $5.7 million overdraft facility (the “GTT Credit Facilities”) subject to the approval from the Minister of Finance at the Bank of Guyana, which was received on March 31, 2023. The GTT Credit Facilities are secured by real estate assets and carry a fixed interest rate of 7.5% which will be reviewed by the bank from time to time and subject to change at the bank’s discretion. The term facility is repayable over five years in equal monthly installments of principal and interest, commencing one month after funds are advanced. The overdraft facility will expire on October 31, 2024. As of December 31, 2023, $4.5 million was outstanding under the overdraft facility and there were no outstanding amounts under the term facility. Sacred Wind Term Debt In connection with the Sacred Wind acquisition completed on November 7, 2022, the Company assumed $31.6 million of term debt (the “Sacred Wind Term Debt”) with the United States of America acting through the Administrator of the Rural Utilities Service (“RUS”). The loan agreements are dated as of October 23, 2006 and March 17, 2016. RUS provides financial assistance in the form of loans under the Rural Electrification Act of 1936 to furnish or improve telecommunications and/or broadband services in rural areas. The Sacred Wind Term Debt is secured by substantially all assets of Sacred Wind and an underlying mortgage to the United States of America. These mortgage notes are to be repaid in equal monthly installments covering principal and interest beginning after date of issue and expiring by 2035. The Sacred Wind Term Debt contains certain restrictions on the declaration or payment of dividends, redemption of capital stock or investment in affiliated companies without the consent by the RUS noteholders. The agreements also contain a financial covenant which Sacred Wind was not in compliance with as of December 31, 2021. Sacred Wind submitted a corrective action plan to comply with the financial covenant as of December 31, 2025. On May 5, 2022, Sacred Wind’s corrective action plan was accepted by the RUS. As of December 31, 2023, the Company was in compliance with that corrective action plan. As of December 31, 2023, $28.2 million was outstanding under the Sacred Wind Term Debt. Of that amount, The mortgage notes carry fixed interest rates ranging from 0.88% to 5.0%. Viya Debt The Company, and certain of its subsidiaries, have entered into a $60.0 million loan agreement (the “Viya Debt”) with Rural Telephone Finance Cooperative (“RTFC”). The Viya Debt agreement contains customary representations, warranties, and affirmative and negative covenants (including limitations on additional debt, guaranties, sale of assets and liens) and a financial covenant that limits the maximum ratio of indebtedness to annual operating cash flow to to 1.0 (the “Net Leverage Ratio”). This covenant is tested on an annual basis at the end of each fiscal year. Interest is paid quarterly at a fixed rate of per annum and principal repayment is not required until maturity on July 1, 2026. Prepayment of the Viya Debt may be subject to a fee under certain circumstances. The debt is secured by certain assets of the Viya subsidiaries and is guaranteed by us. The Company paid a fee of $0.9 million in 2016 to lock the interest rate at 4% per annum over the term of the Viya Debt. The fee was recorded as a reduction to the Viya Debt carrying amount and is being amortized over the life of the loan. As of December 31, 2023, $60.0 million of the Viya Debt remained outstanding and $0.2 million of the rate lock fee was unamortized. On May 5, 2022, RTFC agreed to amend the Net Leverage Ratio to 7.0 to 1.0 through the maturity date of July 1, 2026. The Ratio is tested annually, and the Company was in compliance with the Net Leverage Ratio as of December 31, 2023. One Communications Debt The Company had an outstanding loan from HSBC Bank Bermuda Limited (the “One Communications Debt”) which matured and was repaid in full on December 22, 2022. This loan bore interest at the one-month LIBOR plus a margin ranging between 2.5% to 2.75% per annum paid quarterly. Debt Maturity The table below summarizes the annual maturities of the Company’s debt instruments (amounts in thousands). Customer US International Corporate and Total Receivable Telecom Telecom Other Debt Credit Facility 2024 $ 16,538 $ 4,502 $ 3,250 $ 24,290 $ 7,110 2025 14,969 — 4,875 19,844 7,428 2026 248,469 60,000 8,125 316,594 7,761 2027 3,723 — 9,750 13,473 8,111 2028 3,858 — 136,807 140,665 8,478 Thereafter 10,191 — — 10,191 7,650 Total 297,748 64,502 162,807 525,057 46,538 Debt Discounts (4,142) (247) (3,798) (8,187) (485) Book Value $ 293,606 $ 64,255 $ 159,009 $ 516,870 $ 46,053 |
GOVERNMENT SUPPORT AND SPECTRUM
GOVERNMENT SUPPORT AND SPECTRUM PROGRAMS | 12 Months Ended |
Dec. 31, 2023 | |
GOVERNMENT SUPPORT AND SPECTRUM PROGRAMS | |
GOVERNMENT SUPPORT AND SPECTRUM PROGRAMS | 9. GOVERNMENT SUPPORT AND SPECTRUM PROGRAMS Universal Service Fund and Connect America Fund Phase II Programs The Company recognizes revenue from several government funded programs including the Universal Service Fund (“USF”), a subsidy program managed by the Federal Communications Commission (“FCC”), and the Alaska Universal Service Fund (“AUSF”), a similar program managed by the Regulatory Commission of Alaska (the “RCA”). USF funds are disbursed to telecommunication providers through four programs: the High Cost Program; the Low Income Program (“Lifeline Program”); the Schools and Libraries Program (“E-Rate Program”); and the Rural Health Care Support Program (“RHC”). The Company also recognizes revenue from the Connect America Fund Phase II program (“CAF II”) which offers subsidies to carriers to expand broadband coverage in designated areas. Under CAF II, the Company’s US Telecom segment will receive an aggregate of $27.7 million annually through December 2025 and an aggregate of $8.0 million annually from January 2026 through July 2028. Both the USF and CAF II programs are subject to certain operational and reporting compliance requirements. The Company believes it is in compliance with these requirements as of December 31, 2023. The Company also recognizes revenue from the FCC’s Affordable Connectivity Program (“ACP”) and the Emergency Connectivity Fund (“ECF”). The ACP provides eligible low-income consumers with a monthly subsidy for broadband connectivity and the ECF provides schools and libraries with subsidies for broadband connectivity. In January 2024, the FCC announced that, unless Congress authorizes additional funding, the ACP program will end in the second quarter of 2024. The Company recorded the amounts below as communication services revenue for the reported periods: Year ended December 31, 2023 US Telecom International Telecom Total High cost support $ 9,260 $ 5,571 $ 14,831 CAF II 27,260 — 27,260 RDOF 2,432 — 2,432 ECF 26,346 — 26,346 RHC 11,995 — 11,995 Other 23,478 1,250 24,728 Total $ 100,771 $ 6,821 $ 107,592 Year ended December 31, 2022 US Telecom International Telecom Total High cost support $ 4,459 $ 7,862 $ 12,321 CAF II 27,264 — 27,264 RDOF 1,954 — 1,954 RHC 11,018 — 11,018 Other 15,638 52 15,690 Total $ 60,333 $ 7,914 $ 68,247 Year ended December 31, 2021 US Telecom International Telecom Total High cost support $ 2,449 $ 13,907 $ 16,356 CAF II 16,330 — 16,330 RHC 5,778 — 5,778 Other 8,185 — 8,185 Total $ 32,742 $ 13,907 $ 46,649 In 2018, the FCC initiated a proceeding to replace the High Cost Program support received by Viya in the US Virgin Islands with a new Connect USVI Fund. On November 16, 2020, the FCC announced that Viya was not the recipient of the Connect USVI Fund award and authorized funding to be issued to the new awardee in June 2021. Pursuant to the terms of the program and effective in July 2021, Viya’s annual USF support was reduced from $16.4 million to $10.9 million. In July 2022, this support was reduced again to $5.5 million for the annual period through June 2023. In April of 2023, the FCC issued an order extending the high cost support in the US Virgin Islands at the current $5.5 million per year received from July 2023 through December 31, 2025. In connection with this order, the FCC requires that the Company maintain its current footprint for voice and broadband services in the US Virgin Islands. RDOF (“Rural Digital Opportunities Fund”) The Company expects to receive approximately $22.7 million over 10 years to provide broadband and voice coverage to over 10,000 households in the United States (not including Alaska) under the 2020 Rural Digital Opportunity Fund Phase I Auction (“RDOF”). Construction Grants The Company has also been awarded construction grants to build network connectivity for eligible communities. The funding of these grants, used to reimburse the Company for its construction costs, is generally distributed upon completion of a project. Completion deadlines begin in 2024 and once these projects are constructed, the Company is obligated to provide service to the participants. The Company expects to meet all requirements associated with these grants. A roll forward of the Company’s grant awards is below (in thousands). Amount Grants awarded, December 31, 2022 $ 80,197 New grants 34,526 Construction complete (8,305) Transferred grants (6,269) Grants awarded, December 31, 2023 $ 100,149 In addition, the Company partners with tribal governments to obtain grants under various government grant programs including, but not limited to, the Tribal Broadband Connectivity Program ("TBCP") and the Rural Development Broadband ReConnect Program (“ReConnect”). These programs are administered by United States government agencies to deploy broadband connectivity in certain underserved areas. The Company was identified as a sub recipient of grants under these programs totaling $192.6 million as of December 31, 2023. Under these grants the Company expects to enter into agreements to construct and operate the networks for the grant recipient. Once construction is complete the Company will hold a long-term lease to operate the network. The operating agreement will require the Company to meet certain minimum service requirements. Replace and Remove Program On July 15, 2022, the Company was notified that it was an approved participant in the Federal Communication Commission’s Secure and Trusted Communications Networks Reimbursement Program (the “Replace and Remove Program”), designed to reimburse providers of communications services for reasonable costs incurred in the required removal, replacement, and disposal of covered communications equipment or services, that have been deemed to pose a national security risk, from their networks. Pursuant to the Replace and Remove Program, the Company was allocated up to approximately million in reimbursement amounts to cover documented and approved costs to remove and securely destroy all prohibited communications equipment and services in its U.S. networks and replace such equipment. The Replace and Remove Program requires that the Company complete the project no later than from submitting our initial reimbursement request, or by July 2024. At this time, the Company anticipates that it will be able to meet the deadlines and requirements of the program. The Company has incurred capital expenditures of million were incurred in 2023. At December 31, 2023, million, including operation costs and capital expenditures, which is expected to be reimbursed within the next twelve months. During the year ended December 31, 2023, the Company has received |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
EQUITY | |
EQUITY | 10. EQUITY Common Stock The Company has paid quarterly dividends on its Common Stock since January 1999. Treasury Stock On December 14, 2023, the Company’s Board of Directors authorized the repurchase of up to $25.0 million of its Common Stock, from time to time, on the open market or in privately negotiated transactions (the “2023 Repurchase Plan”). The 2023 Repurchase Plan replaced the previously approved 2016 Repurchase Plan and, as of December 31, 2023, had all During the years ended December 31, 2023, 2022 and 2021 (and prior to the effectiveness of the 2023 Repurchase Plan), the Company repurchased the following shares under the 2016 Repurchase Plan: Shares Aggregate Cost Average Year ended December 31, Repurchased (in thousands) Repurchase Price 2023 423,328 $ 14,999 $ 35.43 2022 23,714 942 39.70 2021 244,798 10,546 43.08 During the years ended December 31, 2023, 2022 and 2021, 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: Shares Aggregate Cost Average Year ended December 31, Repurchased (in thousands) Repurchase Price 2023 36,951 $ 1,473 $ 39.86 2022 33,401 1,169 35.01 2021 33,271 1,713 51.49 Stock-Based Compensation On June 6, 2023, the Company established the ATN International, Inc. 2023 Equity Incentive Plan (the “2023 Equity Incentive Plan”) and reserved 1,432,070 shares for the grant of restricted stock units, performance stock units and stock options and awards of shares of Common Stock that are not subject to restrictions or forfeiture. The 2023 Equity Incentive Plan replaces the previously approved ATN International, Inc. 2008 Equity Incentive Plan (the “2008 Equity Incentive Plan”). additional grants shall be made under the 2008 Equity Incentive Plan on or after the effective date of the 2023 Equity Incentive Plan. Outstanding grants under the 2008 Equity Incentive Plan shall continue in effect according to their terms. As of December 31, 2023, the Company has Restricted Stock Restricted stock, previously granted under the 2008 Equity Incentive Plan and to be granted under the 2023 Equity Incentive Plan, vests over four years. The following table summarizes restricted stock activity during the years ended December 31, 2023 and 2022: Weighted Avg. Shares Fair Value Unvested as of January 1, 2023 260,497 $ 43.86 Granted 151,560 38.08 Forfeited (9,354) 41.95 Vested and issued (118,419) 44.99 Unvested as of December 31, 2023 284,284 $ 40.37 Weighted Avg. Shares Fair Value Unvested as of January 1, 2022 228,068 $ 51.05 Granted 152,430 38.59 Forfeited (12,486) 46.52 Vested and issued (107,515) 51.33 Unvested as of December 31, 2022 260,497 $ 43.86 In connection with the grant of restricted stock, the Company recognized $5.4 million, $6.8 million and $5.4 million of compensation expense within its income statements for the years ended December 31, 2023, 2022, and 2021, respectively. The Company also recognized The unvested shares as of December 31, 2023 represent $7.9 million in unamortized stock-based compensation which will be recognized over a weighted average period of 2.4 years. Performance-Based Stock Performance-based stock, previously granted under the 2008 Equity Incentive Plan and to be granted under the 2023 Equity Incentive Plan, vests on the third anniversary of the grant date. The following table summarizes performance stock activity during the years ended December 31, 2023 and 2022: Weighted Avg. Shares Fair Value Unvested as of January 1, 2023 99,450 $ 52.54 Granted 59,100 45.10 Forfeited — — Vested and issued — — Unvested as of December 31, 2023 158,550 $ 49.77 Weighted Avg. Shares Fair Value Unvested as of January 1, 2022 43,000 $ 59.77 Granted 56,450 47.03 Forfeited — — Vested and issued — — Unvested as of December 31, 2022 99,450 $ 52.54 In connection with the grant of performance-based stock, the Company recognized $2.5 million, $1.5 million and $0.7 million of compensation expense, during the years ended December 31, 2023, 2022 and 2021, respectively. All Stock Options Stock options have a term of 10 years and vest annually and ratably over a period of four years. There was no stock option activity during the year ended December 31, 2023. The following table summarizes stock option activity for the year ended December 31, 2022: Year Ended December 31, 2022 Weighted Average Remaining Number of Weighted Avg. Contractual Aggregate Options Exercise Price Term (Years) Intrinsic Value Outstanding at January 1, 2022 5,000 $ 71.43 Granted — — Forfeited — — Expired (5,000) — Exercised — — Outstanding at December 31, 2022 — — — $ — Vested and expected to vest as of December 31, 2022 — — — $ — Exercisable at December 31, 2022 — — — $ — The Company has not granted any options since 2017. The Company did not recognize any compensation expense, related to granted stock options, during the three years ended December 31, 2023. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | 11. INCOME TAXES The components of income before income taxes for the years ended December 31, 2023, 2022 and 2020 are as follows (in thousands): 2023 2022 2021 Domestic $ (57,289) $ (37,777) $ (38,407) Foreign 29,750 29,721 15,720 Total $ (27,539) $ (8,056) $ (22,687) 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, 2023, 2022 and 2021 (in thousands): 2023 2022 2021 Tax computed at statutory US federal income tax rates $ (5,783) $ (1,681) $ (4,760) Noncontrolling interest (62) 844 (158) Foreign tax rate differential (8,853) (6,525) (4,520) Over (under) provided in prior periods (179) (437) (78) Nondeductible expenses 1,806 2,111 1,429 Capitalized transactions costs 56 134 898 Change in tax reserves 2,783 4,052 2,524 State Taxes, net of federal benefit (1,776) (1,126) (1,399) Change in valuation allowance 2,467 2,117 3,575 Investment Tax Credit 84 84 101 Stock-based compensation 812 696 510 Deferred income tax revaluation (140) (742) - Total Income Tax Expense $ (8,785) $ (473) $ (1,878) The components of income tax expense (benefit) for the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands): \ 2023 2022 2021 Current: United States—Federal $ 921 $ 302 $ 460 United States—State 404 20 2 Foreign 6,646 6,657 4,272 Total current income tax expense $ 7,971 $ 6,979 $ 4,734 Deferred: United States—Federal $ (7,786) $ (4,527) $ (5,800) United States—State (2,781) (1,895) (1,402) Foreign (6,189) (1,030) 590 Total deferred income tax expense (benefit) $ (16,756) $ (7,452) $ (6,612) Consolidated: United States—Federal $ (6,865) $ (4,225) $ (5,340) United States—State (2,377) (1,875) (1,400) Foreign 457 5,627 4,862 Total income tax expense (benefit) $ (8,785) $ (473) $ (1,878) The significant components of deferred tax assets and liabilities are as follows as of December 31, 2023 and 2022 (in thousands): 2023 2022 Deferred tax assets: Accounts receivable and inventory allowances $ 2,552 $ 2,567 Basis in investments 3,795 4,387 Accrued expenses 7,331 7,063 Deferred revenue 26,768 27,526 Employee benefits 4,515 6,690 Other, net 14,764 6,892 Net operating losses 78,876 63,713 Tax Credits 5,659 2,995 Operating lease liability 23,370 24,451 Total deferred tax asset 167,630 146,284 Deferred tax liabilities: Acquired intangible assets, property and equipment 105,729 106,529 Right-of-use asset 27,099 27,796 Prepaid expense 250 197 Total deferred tax liabilities 133,078 134,522 Valuation allowance (43,118) (35,759) Net deferred tax liabilities $ (8,566) $ (23,997) Deferred tax assets and liabilities are reflected in the accompanying consolidated balance sheets as follows (in thousands): 2023 2022 Deferred tax assets: Long term $ 11,209 $ 4,653 Total deferred tax asset $ 11,209 $ 4,653 Deferred tax liabilities: Long term $ (19,775) $ (28,650) Total deferred tax liabilities $ (19,775) $ (28,650) Net deferred tax liabilities $ (8,566) $ (23,997) The Company’s effective tax rate for the years ended December 31, 2023 and 2022 was 31.9% and 5.9% , respectively. The effective tax rate for the year ended December 31, 2023 was primarily impacted by the following items: (i) a The effective tax rate for the year ended December 31, 2022 was primarily impacted by the following items: (i) a As of December 31, 2023, the Company estimated that it had gross federal, state and foreign net operating loss (“NOL”) carryforwards of $155.4 million, $152.7 million and $165.8 million respectively. Of these, The Company assesses available positive and negative evidence to estimate if sufficient future taxable income will be generated to realize the existing deferred tax assets. A significant piece of negative evidence evaluated is cumulative losses incurred in certain reporting jurisdictions over the three-year period ended December 31, 2023. Other negative evidence examined includes, but is not limited to, losses expected in early future years, a history of tax benefits expiring unused, uncertainties whose unfavorable resolution would adversely affect future results, and brief carryback, carry forward periods. On the basis of this evaluation, the Company believed it was more likely than not that the benefit from some of these federal, state, and foreign deferred taxes would not be realized. In recognition of this risk at December 31, 2023 the Company has provided a valuation allowance against certain domestic and foreign deferred tax assets of $43.1 million. The valuation allowance primarily relates to net operating losses, with the remaining amount applicable to other net deferred tax assets which the Company does not expect to be able to realize. As of December 31, 2023 The Company had an estimated $185.3 million of undistributed earnings attributable to foreign subsidiaries for which no provision for state income taxes or foreign withholding taxes have been made because it is expected that such earnings will be reinvested outside the U.S. indefinitely unless repatriation can be done substantially tax-free. The Company will generally be free of additional U.S. federal tax consequences on distributed foreign subsidiary earnings due to a dividends received deduction implemented as part of the Tax Act for earnings distributed after January 1, 2018. Additionally, due to the one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiary earnings, the majority of previously unremitted earnings have already been subjected to U.S. federal income tax. The Company continues to assert indefinite reinvestment on outside basis differences in our non-U.S. subsidiaries, additionally any determination of the amount of the unrecognized deferred tax liability on outside basis differences is not practicable because of the complexity of laws and regulations, the varying tax treatment of alternative repatriation scenarios and the variation due to multiple potential assumptions relating to the timing of any future repatriation. The Company had unrecognized tax benefits (including interest and penalty) of $49.9 million as of December 31, 2023, $48.6 million as of December 31, 2022 and, $51.3 million as of December 31, 2021. The net increase of the reserve during the year ended December 31, 2023 was attributable to an increase in tax positions for prior periods of $2.7 million, a net increase in tax positions for the current period of $2.6 million, partially offset by a lapse in statute of a prior year position of $4.0 million. The following shows the activity related to unrecognized tax benefits (not including interest and penalty) during the three years ended December 31, 2023 (in thousands): Gross unrecognized uncertain tax benefits at December 31, 2020 $ 33,878 Increase in unrecognized tax benefits taken during a prior period (216) Increase in unrecognized tax benefits taken during the current period 3,880 Increase in unrecognized tax benefits acquired as part of a business combination 8,275 Lapse in statute of limitations (2,103) Settlements — Gross unrecognized uncertain tax benefits at December 31, 2021 $ 43,714 Increase in unrecognized tax benefits taken during a prior period — Increase in unrecognized tax benefits taken during the current period 5,080 Increase in unrecognized tax benefits acquired as part of a business combination (6,825) Lapse in statute of limitations (2,050) Settlements — Gross unrecognized uncertain tax benefits at December 31, 2022 $ 39,919 Increase in unrecognized tax benefits taken during a prior period — Increase in unrecognized tax benefits taken during the current period 2,598 Increase in unrecognized tax benefits acquired as part of a business combination — Lapse in statute of limitations (2,449) Settlements — Gross unrecognized uncertain tax benefits at December 31, 2023 $ 40,068 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 $9.8 million as of December 31, 2023, $8.7 million as of December 31, 2022, and $7.6 million as of December 31, 2021. The majority of unrecognized uncertain tax benefits (including interest and penalty) would impact the effective tax rate if recognized. The Company believes it is reasonably possible that its gross unrecognized tax benefits could decrease in the next 12 months, primarily due to the lapse of a statute of limitations applicable to a tax position taken on a prior year tax return. The Company and its subsidiaries file income tax returns in the US and in various, state and local and foreign jurisdictions. The statute of limitations related to the consolidated US federal income tax return is closed for all tax years up to and including 2016. The expiration of the statute of limitations related to the various state and foreign income tax returns that the Company and subsidiaries file varies by jurisdiction. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
RETIREMENT PLANS | |
RETIREMENT PLANS | 12. RETIREMENT PLANS The Company has noncontributory defined benefit pension plans as well as noncontributory postretirement benefit plans offering defined medical, dental, vision, and life benefits for certain of its employees. The Company’s pension and other postretirement benefit plans are closed to new participants and only grandfathered participants continue to accrue additional benefits. Also, in 2020 the Company began the process of winding up one of its benefit plans. The Company reviews the funded status of its pension plans and makes contributions based on that analysis. The benefits are based on the participants’ compensation during their employment and the credited service years earned by participants. The Company funds the other postretirement benefit plans as benefits are paid. The weighted-average rates assumed in the actuarial calculations for the pension and other postretirement benefit plans are as follows as of December 31, 2023, 2022 and 2021: 2023 2022 2021 Discount Rate – Pension Benefit Obligation 4.3 % 5.4 % 2.9 % Discount Rate – Pension Benefit Cost 5.4 % 2.9 % 2.6 % Discount Rate – Postretirement Benefit Obligation 5.2 % 5.4 % 2.8 % Discount Rate – Postretirement Benefit Cost 5.2 % 2.8 % 2.5 % Expected long-term return on plan assets 5.3 % 5.2 % 5.3 % The expected long-term rate of return on plan assets was determined based on several factors including input from pension investment consultants, projected long-term returns of equity and bond indices, 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. The annual salary increase assumption is no longer applicable as the plan participants no longer accrue additional service. The discount rate was determined based on a review of market data including yields on high quality corporate bonds with maturities approximating the remaining life of the project benefit obligations. The other postretirement benefit plans healthcare cost trend assumptions is based on health care trend rates. The 2023 assumed medical health care cost trend rate is in 2074. The assumed dental care cost trend rate is in 2023 and remains at this rate until 2074. Changes during the year in the projected benefit obligations and in the fair value of plan assets are as follows for 2023 and 2022 (in thousands): 2023 2022 Pension Benefits Postretirement Benefits Pension Benefits Postretirement Benefits Projected benefit obligations: Balance at beginning of year: $ 66,175 $ 3,624 $ 100,624 $ 5,343 Service cost 90 65 151 124 Interest cost 3,323 182 2,373 139 Benefits and settlements paid (6,899) (309) (18,490) (396) Actuarial (gain) loss 1,460 63 (16,758) (1,586) Settlement - — (1,725) - Balance at end of year $ 64,149 $ 3,625 $ 66,175 $ 3,624 Plan net assets: Balance at beginning of year: $ 71,552 $ — $ 103,718 $ — Actual return on plan assets 7,142 — (13,188) — Company contributions 207 309 — 396 Benefits and settlements paid (7,397) (309) (18,978) (396) Balance at end of year $ 71,504 $ — $ 71,552 $ — Over/ (Under) funded status of plan $ 7,355 $ (3,625) $ 5,377 $ (3,624) The Company reports an asset or liability on its balance sheet equal to the funded status of its pension and other postretirement benefit plans. Plans in an overfunded status are aggregated and recorded as a net pension benefit asset in other assets. Plans in an underfunded status are aggregated and recorded as a net postretirement benefit liability in other liabilities. 2023 Viya Pension Benefit Alaska Pension Benefit Viya Postretirement Benefits Alaska Postretirement Benefits Projected benefit obligation $ 53,075 $ 11,074 $ 3,341 $ 284 Plan Net Assets 62,142 9,362 — — Over/ (Under) funded status of plan $ 9,067 $ (1,712) $ (3,341) $ (284) 2022 GTT Pension Benefit Viya Pension Benefit Alaska Pension Benefit Viya Postretirement Benefits Alaska Postretirement Benefits Projected benefit obligation $ 2,038 $ 52,832 $ 11,305 $ 3,337 $ 287 Plan Net Assets 2,038 60,132 9,382 — — Over/ (Under) funded status of plan $ — $ 7,300 $ (1,923) $ (3,337) $ (287) 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 to achieve long-term returns without significant risk to principal. The pension fund has limitations 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. The fair values for the pension plan’s net assets, by asset category, at December 31, 2023 are as follows (in thousands): Asset Category Total Level 1 Level 2 Cash, cash equivalents, money markets and other $ 2,642 $ 2,642 $ — Common stock 12,680 12,680 — Mutual funds - fixed income 8,836 8,836 — Mutual funds - equities 9,527 9,527 — Fixed income securities 33,728 — 33,728 Other 4,091 4,091 — Total $ 71,504 $ 37,776 $ 33,728 The fair values for the pension plan’s net assets, by asset category, at December 31, 2022 are as follows (in thousands): Asset Category Total Level 1 Level 2 Cash, cash equivalents, money markets and other $ 7,572 $ 7,572 $ — Common stock 17,974 17,974 — Mutual funds - fixed income 10,732 10,732 — Mutual funds - equities 5,228 5,228 — Fixed income securities 22,913 — 22,913 Other 7,133 7,133 — Total $ 71,552 $ 48,639 $ 22,913 The plan’s weighted-average asset allocations at December 31, 2023 and 2022, by asset category are as follows: 2023 2022 Cash, cash equivalents, money markets and other 4 % 11 % Common stock 18 25 Mutual funds - fixed income 12 15 Mutual funds - equities 13 7 Fixed income securities 47 32 Other 6 10 Total 100 % 100 % Amounts recognized on the Company’s consolidated balance sheets consist of (in thousands): As of December 31, 2023 2022 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Accrued and current liabilities $ — $ 310 $ — $ 294 Other Liabilities 1,712 3,318 1,923 3,068 Other Assets 9,070 — 7,303 — Accumulated other comprehensive income, net of tax 8,592 1,415 6,191 1,589 Amounts recognized in accumulated other comprehensive income consist of (in thousands): As of December 31, 2023 2022 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Unrecognized net actuarial gain $ 8,842 $ 1,614 $ 6,268 $ 1,614 Accumulated other comprehensive income, pre-tax 8,842 1,614 6,268 1,614 Accumulated other comprehensive income, net of tax 8,592 1,415 6,191 1,589 Components of the plan’s net periodic pension cost are as follows for the years ended December 31, 2023, 2022 and 2021 (in thousands): 2023 2022 2021 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Pension benefits Postretirement benefits Operating expense Service cost $ 90 $ 65 $ 151 $ 124 $ 229 $ 143 Non-operating expense Interest cost 3,323 182 2,373 139 2,043 127 Expected return on plan assets (2,936) — (3,814) — (3,366) — Amortization of actuarial (gain) loss (43) (113) — — — — Settlement — — 1,725 — 34 — Net periodic pension cost $ 434 $ 134 $ 435 $ 263 $ (1,060) $ 270 The Company is currently evaluating whether it will make any contributions to its pension and postretirement benefit plans during the year ending December 31, 2024. The following estimated benefits, which reflect expected future service, as appropriate, are expected to be paid over the next 10 years as indicated below (in thousands): Pension Postretirement Fiscal Year Benefits Benefits 2024 $ 5,365 $ 317 2025 4,899 333 2026 4,969 238 2027 5,026 265 2028 4,775 265 2029-2033 23,351 1,483 Total $ 48,385 $ 2,901 Multi-employer Defined Benefit Plan Certain employees of the Company’s US Telecom participate in the Alaska Electrical Pension Plan (“AEPF”). The Company pays the AEPF a contractual hourly amount based on employee classification or base compensation. As a multi-employer defined benefit plan, the accumulated benefits and plan assets are not determined for, or allocated separately to, the individual employer. The following table provides additional information about the AEPF multi-employer pension plan. Plan name Alaska Electrical Pension Plan Number of employees covered 541 Pension Protection Act zone status at the plan's year-end: December 31, 2022 Green December 31, 2021 Green Plan subject to funding improvement plan No Plan subject to rehabilitation plan No Employer subject to contribution surcharge No Company contributions to the plan for the year ended: December 31, 2023 $ 6.2 million December 31, 2022 $ 6.6 million December 31, 2021 $ 3.1 million Name and expiration date of collective bargaining agreements requiring contributions to the plan: Collective Bargaining Agreement Between Alaska Communications Systems and Local Union 1547 IBEW June 30, 2025 Outside Agreement Alaska Electrical Construction between Local Union 1547 IBEW and Alaska Chapter National Electrical Contractors Association Inc. June 30, 2026 Inside Agreement Alaska Electrical Construction between Local Union 1547 IBEW and Alaska Chapter National Electrical Contractors Association Inc. April 30, 2026 The Company’s contributions to the plan in 2023 and 2022 represent greater than 5% of the total contributions to the plan. The Company cannot accurately project any change in the plan status in future years given the uncertainty of economic conditions or the effect of actuarial valuations versus actual performance in the market. Minimum required future contributions to the AEPF are subject to the number of employees in each classification and base compensation of employees in future years. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES Regulatory and Litigation Matters 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. Historically, the Company’s subsidiary, GTT, has been subject to other long-standing litigation proceedings and disputes in Guyana that have not yet been resolved. 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 matters currently pending will not have a material adverse effect on the Company’s financial position or results of operations. Beginning in 2006, the National Frequency Management Unit (now the Telecommunications Agency , or the “NFMU/TA”) and GTT have been engaged in discussions regarding the amount of and methodology for calculation of spectrum fees payable by GTT in Guyana. Since that time, GTT has made payments of, undisputed spectrum fees as amounts invoiced by the NFMU/TA. There have been limited further discussions on the subject of a revised spectrum fee methodology with the Telecommunications Agency and GTT awaits the determination of such fees. GTT has filed several lawsuits in the High Court of Guyana asserting that, despite its denials, Digicel is engaged in international bypass in violation of GTT’s exclusive license rights, the interconnection agreement between the parties, and the laws of Guyana. Digicel filed counterclaims alleging that GTT has violated the terms of the interconnection agreement and Guyana laws. These suits, filed in 2010 and 2012, have been consolidated, however, the Company cannot accurately predict at this time when the consolidated suit will reach a court of final determination. GTT is also involved in several legal claims regarding its tax filings with the Guyana Revenue Authority (the “GRA”) dating back to 1991 regarding the deductibility of intercompany advisory fees as well as other tax assessments. GTT’s position has been upheld by various High Court rulings with respect to all outstanding matters. Several High Court rulings in the favor of GTT have been appealed by the GRA and the Company believes that some adverse outcome in these or pending unheard matters could occur. In February 2020, the Company’s Alaska Communications subsidiary received a draft audit report from USAC in connection with USAC’s inquiry into Alaska Communications’ funding requests under the Rural Health Care Support Program for certain customers for the time period of July 2012 through June 2017. The draft audit report alleges violations of the FCC’s rules for establishing rural rates and urban rates, the provisioning and billing of ineligible services and products, and violations of the FCC’s competitive bidding rules. Alaska Communications has provided USAC with extensive comments in response to its draft audit report seeking correction of numerous factual and legal errors that it believed it had identified. As a result of these conversations and comments being submitted by Alaska Communications, USAC’s auditors may revise their findings, including the amounts they recommend USAC seek to recover. USAC’s auditors are expected to issue a final audit report incorporating Alaska Communications’ responses that will be sent to USAC’s Rural Health Care Division to review and determine if corrective action would be appropriate. In the event that the Company disagrees with USAC’s final audit report, the Company can appeal that decision to USAC’s Rural Health Care Division and/or the FCC. At this time, the Company cannot predict the contents or timing of the final USAC audit report, the outcome of the audit or the impact on the Company’s business, financial condition, results of operations, or liquidity. Alaska Communications also received a Letter of Inquiry on March 18, 2018, and subsequent follow up information requests, from the FCC Enforcement Bureau requesting historical information regarding Alaska Communications’ participation in the FCC’s Rural Health Care Support Program. The Company is engaged in discussions with the FCC’s Enforcement Bureau and will continue to work constructively to provide it the information it is seeking. Any adverse outcome with respect to the FCC Enforcement Bureau’s inquiry may have an adverse impact on the Company’s business, financial condition, results of operations, or liquidity. With respect to all of the foregoing matters, the Company believes that some adverse outcome is probable and has accordingly accrued $16.3 million as of December 31, 2023 for these and other potential liabilities arising in various claims, legal actions and regulatory proceedings arising in the ordinary course of business. The Company also faces contingencies that are reasonably possible to occur that cannot currently be estimated. It is the Company’s policy to expense costs associated with loss contingencies, including any related legal fees, as they are incurred. Other Obligations The Company has obligations under non-cancellable contracts for network facilities and transport services, agreements for software licensing, as well as certain agreements to purchase goods or services. Future minimum payments required under these commitments are as follows at December 31, 2023 (in thousands): 2024 $ 121,989 2025 74,457 2026 32,220 2027 19,005 2028 13,816 Thereafter 106,373 Total obligations $ 367,860 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 14. SEGMENT REPORTING Through December 31, 2023, the Company has the following two reportable and operating segments: i) International Telecom and ii) US Telecom. The following tables provide information for each operating segment (in thousands): For the Year Ended December 31, 2023 International US Corporate and Telecom Telecom Other (1) Consolidated Revenue Communication Services Mobility - Business $ 16,333 $ 527 $ — $ 16,860 Mobility - Consumer 92,153 3,510 — 95,663 Total Mobility 108,486 4,037 — 112,523 Fixed - Business 71,215 143,322 — 214,537 Fixed - Consumer 167,953 90,283 — 258,236 Total Fixed 239,168 233,605 — 472,773 Carrier Services 14,686 128,195 — 142,881 Other 3,066 3,839 — 6,905 Total Communication Services Revenue 365,406 369,676 — 735,082 Construction — 10,629 — 10,629 Other Managed Services 5,327 11,178 — 16,505 Total Other Revenue 5,327 11,178 — 16,505 Total Revenue 370,733 391,483 — 762,216 Depreciation 57,420 81,594 2,613 141,627 Amortization of intangibles from acquisitions 1,253 11,383 — 12,636 Non-cash stock-based compensation 431 247 7,857 8,535 Operating income (loss) 53,420 (5,522) (34,723) 13,175 For the Year Ended December 31, 2022 International US Corporate and Telecom Telecom Other (1) Consolidated Revenue Communication Services Mobility - Business $ 14,830 $ 1,228 $ — $ 16,058 Mobility - Consumer 87,601 6,359 — 93,960 Total Mobility 102,431 7,587 — 110,018 Fixed - Business 69,903 126,735 — 196,638 Fixed - Consumer 163,408 78,338 — 241,746 Total Fixed 233,311 205,073 — 438,384 Carrier Services 13,459 128,864 — 142,323 Other 1,450 46 — 1,496 Total Communication Services Revenue 350,651 341,570 — 692,221 Construction — 15,762 — 15,762 Other Managed Services 4,930 12,832 — 17,762 Total other revenue 4,930 12,832 — 17,762 Total Revenue 355,581 370,164 — 725,745 Depreciation and amortization 56,568 75,020 3,549 135,137 Amortization of intangibles from acquisitions 1,572 11,444 — 13,016 Non-cash stock-based compensation 240 387 6,779 7,406 Operating income (loss) 52,011 (5,655) (38,414) 7,942 For the Year Ended December 31, 2021 International US Corporate and Telecom Telecom Other (1) Consolidated Revenue Communication Services Mobility - Business $ 6,983 $ 1,402 $ — $ 8,385 Mobility - Consumer 86,384 7,532 — 93,916 Total Mobility 93,367 8,934 — 102,301 Fixed - Business 67,458 53,283 — 120,741 Fixed - Consumer 166,005 41,897 — 207,902 Total Fixed 233,463 95,180 — 328,643 Carrier Services 9,937 107,793 — 117,730 Other 946 — — 946 Total Communication Services Revenue 337,713 211,907 — 549,620 Construction — 35,889 — 35,889 Other Renewable Energy — — 417 417 Managed Services 5,146 11,635 — 16,781 Total Other Revenue 5,146 11,635 417 17,198 Total Revenue 342,859 259,431 417 602,707 Depreciation 53,858 43,604 5,269 102,731 Amortization of intangibles from acquisitions 1,648 6,127 — 7,775 Non-cash stock-based compensation 128 271 6,182 6,581 Operating income (loss) 33,899 (14,016) (34,909) (15,026) International US Corporate and Telecom Telecom Other Consolidated December 31, 2023 Cash, cash equivalents, and restricted cash $ 26,354 $ 33,574 $ 2,239 $ 62,167 Total current assets 107,469 162,768 11,035 281,272 Fixed assets, net 481,911 593,833 4,915 1,080,659 Goodwill 4,836 35,268 — 40,104 Total assets 672,171 1,019,924 91,619 1,783,714 Total current liabilities 86,540 169,297 37,357 293,194 Total debt, including current portion 64,254 293,607 159,009 516,870 December 31, 2022 Cash, cash equivalents, and restricted cash $ 26,418 $ 26,375 $ 6,935 $ 59,728 Total current assets 105,324 116,038 8,326 229,688 Fixed assets, net 462,447 585,969 7,538 1,055,954 Goodwill 4,835 35,269 — 40,104 Total assets 643,664 980,543 83,662 1,707,869 Total current liabilities 86,738 119,755 26,687 233,180 Total debt, including current portion 59,659 263,241 99,000 421,900 Capital Expenditures International US Corporate and Year ended December 31, Telecom Telecom Other (1) Consolidated 2023 $ 76,379 $ 119,789 $ — $ 196,168 2022 70,385 96,589 1,045 168,019 (1) Corporate and other refers to corporate overhead expenses and consolidating adjustments. See Note 5 for a discussion of the Company’s disposition of its International Solar Business. The table below identifies the Company’s revenues and long-lived assets by geographic location. The Company attributes revenue to geographic location based on location of the customer (in thousands): 2023 2022 2021 Long-Lived Long-Lived Long-Lived Revenues Assets Revenues Assets Revenues Assets US $ 391,870 $ 938,650 $ 370,204 $ 927,177 $ 259,430 $ 840,251 Guyana 119,915 195,030 113,816 174,719 108,338 152,627 US Virgin Islands 95,129 213,553 93,264 209,101 94,310 210,448 Bermuda 114,096 102,227 110,337 100,125 104,671 107,885 Other Foreign Countries 41,206 52,982 38,124 67,058 35,958 64,775 $ 762,216 $ 1,502,442 $ 725,745 $ 1,478,180 $ 602,707 $ 1,375,986 |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2023 | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II ATN INTERNATIONAL, 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, 2021 Description: Valuation allowance on net operating losses and other deferred taxes $ 31,014 $ 2,628 $ — $ 33,642 Allowance for credit losses 12,121 4,850 3,086 13,885 $ 43,135 $ 7,478 $ 3,086 $ 47,527 YEAR ENDED, December 31, 2022 Description: Valuation allowance on net operating losses and other deferred taxes $ 33,642 $ 2,653 $ 536 $ 35,759 Allowance for credit losses 13,885 6,695 5,409 15,171 $ 47,527 $ 9,348 $ 5,945 $ 50,930 YEAR ENDED, December 31, 2023 Description: Valuation allowance on net operating losses and other deferred taxes $ 35,759 $ 8,327 $ 968 $ 43,118 Allowance for credit losses 15,171 5,012 3,821 16,362 $ 50,930 $ 13,339 $ 4,789 $ 59,480 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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’s (“FASB”) authoritative guidance on the consolidation of variable interest entities since it is determined that the Company is the primary beneficiary of these entities. |
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 credit losses on trade receivables, useful lives of the Company’s fixed and finite-lived intangible assets, allocation of purchase price to assets acquired and liabilities assumed in business combinations, fair value of indefinite-lived intangible assets, goodwill 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, 2023, the Company had $21.8 million of its cash on deposit with noninsured institutions such as corporate money market issuers and cash held in foreign banks. The Company’s cash and cash equivalents are not subject to any restrictions (see Note 8). As of December 31, 2023 and 2022, the Company held $5.7 million and $4.9 million, respectively, of its cash in Guyana dollars. While there are risks associated with the conversion of Guyana dollars to US dollars due to limited liquidity in the Guyana foreign currency markets, to date it has not prevented the Company from converting Guyana dollars into US dollars within a given three month period or from converting at a price that reasonably approximates the reported exchange rate. |
Restricted Cash | Restricted Cash The Company classifies cash that is legally restricted as to withdrawal or usage as restricted cash. Restricted cash as of December 31, 2023 and December 31, 2022 primarily relates to cash that is restricted for regulatory purposes. |
Short Term Investments | Short Term Investments The Company's short-term investments consist of corporate bonds, which have remaining maturities of more than three months at the date of purchase, and equity securities classified as available for sale, which are stated at fair value. Unrealized gains and losses are recorded in other income. The estimated fair values of investments are based on quoted market prices as of the end of the reporting period. |
Allowance for Credit Losses | Allowance for Credit Losses The Company records an estimate of future credit losses in conjunction with the revenue transactions based on information available including historical experience, credit worthiness of customers, the Company’s historical experience with customers, current market and economic conditions, and management’s expectations of future conditions. That estimate is updated as additional information becomes available. Uncollectible amounts are charged against the allowance account. The Company’s allowance for uncollectible accounts receivable is based on management’s assessment of the collectability of assets pooled together with similar risk characteristics. |
Inventory, Materials and Supplies | Inventory, Materials and Supplies Inventory, materials and supplies primarily include handsets and other equipment held for sale to customers. These balances are recorded at the lower of cost, determined on the basis of specific identification, or market, determined using replacement value. |
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 to fixed assets. Repairs and replacements of minor items of property are charged to period operating expense as incurred. The cost of fixed assets in service and under construction includes internal and external costs necessary to bring an asset to the condition and location necessary for its intended use. Grants received for the construction of assets are recognized as a reduction of the cost of fixed assets, a subsequent reduction of depreciation expense over the useful lives of those assets within the income statement and as an investing cash flow in the statements of cash flows. The Company capitalizes certain costs of developing and purchasing new information systems in accordance with internal use software guidance. These costs are depreciated over the useful life of the information system. The Company also incurs implementation costs associated with cloud computing arrangements. If these implementation costs do not meet internal use software capitalization guidance, the implementation costs are recorded as prepaid assets and expensed through operating expense over the life of the arrangement. 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. Other liabilities within the consolidated balance sheets include accruals of $ 11.4 million and $10.3 million as of December 31, 2023 and 2022, respectively, for estimated costs associated with asset retirement obligations. In accordance with the authoritative guidance for 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 asset’s carrying value in excess of 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 did not record any fixed asset impairments for the years ended December 31, 2023, 2022 or 2021. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill is recognized in business combinations equal to 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. The assessment begins with a qualitative analysis to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the reporting unit passes this analysis, the impairment assessment is complete and no impairment is recorded. If the reporting unit does not pass the analysis, or if a quantitative analysis is elected to be applied, the Company performs additional quantitative analysis by calculating the fair value of the reporting unit. If the fair value exceeds the carrying value, the test is complete and no impairment is recorded. If the carrying value of the reporting unit, including goodwill, exceeds the fair value of the reporting unit an impairment charge is recorded equal to the excess, but not more than the total amount of goodwill allocated to the reporting unit. 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. The assessment begins with a qualitative analysis to determine whether it is more likely than not that the license fair value exceeds its carrying value. If the reporting unit passes this analysis, the impairment assessment is complete and no impairment is recorded. If the reporting unit does not pass the analysis, the Company performs additional quantitative analysis to calculate the fair value of the license. If the carrying value of the license exceeds the license fair value an impairment charge is recorded. As a part of the impairment test the Company assesses the appropriateness of the application of the indefinite-lived assertion. 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 Company performed its annual impairment assessment of its goodwill and indefinite-lived intangible assets (telecommunications licenses) for the years ended December 31, 2023 and 2022 and no impairment were identified . See Note 7 for a discussion of the Company’s impairment of a portion of its goodwill within its International Telecom segment during the year ended December 31, 2021. |
Other Intangible Assets | Other 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 the assets acquired. These include acquired customer relationships and trade names. The process for estimating the fair values of identifiable intangible assets requires the use of significant estimates and assumptions by management, including revenue growth rates, customer attrition rates, royalty rates, discount rates and projected future cash flows. Customer relationships and trade names are amortized over their estimated lives ranging from 5-13 years and 6-15 years, respectively, based on the pattern in which economic benefit of the customer relationship is estimated to be realized. The Company evaluates intangible assets subject to amortization annually for impairment. |
Debt | Debt Debt is measured at amortized cost. Debt issuance costs are recorded as a reduction to the carrying value of the debt and are amortized as interest expense in the consolidated income statements over the period of the debt. 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. |
Noncontrolling Interests | Noncontrolling Interests The noncontrolling interests in the accompanying consolidated balance sheets reflect the original investments made by minority stockholders in certain subsidiaries of the Company. Noncontrolling interests acquired in a business combination are initially recorded at fair value. Subsequently, noncontrolling interests are adjusted for additional capital contributions, the minority stockholder’s proportional share of the earnings or losses, distributions to the minority stockholders and repurchases, by the Company, of such interests. |
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 and Postretirement Benefit Translation Obligations Adjustment Other Total Balance at December 31, 2020 $ (570) $ 997 $ (149) $ 278 Unrecognized actuarial gain, net of tax of $(0.1) million 5,014 — — 5,014 Foreign currency translation adjustment — (689) — (689) Interest rate swap — — 170 170 Balance at December 31, 2021 4,444 308 21 4,773 Unrecognized actuarial gain, net of tax of $(0.2) million 2,428 — — 2,428 Pension settlement, net of tax of $(0.8) million 915 — — 915 Reclassification of foreign currency losses on investments sold, net of tax of $0.2 million — (500) — (500) Foreign currency translation adjustment — (1,385) — (1,385) Interest rate swap — — (21) (21) Balance at December 31, 2022 7,787 (1,577) — 6,210 Unrecognized actuarial gain, net of tax of $0 2,035 — — 2,035 Pension settlement, net of tax of $(0.2) million 195 — — 195 Reclassification of foreign currency losses on investments, net of tax of $0 — 1,348 — 1,348 Foreign currency translation adjustment — 229 — 229 Interest rate swap, net of tax of $0.6 million — — (1,749) (1,749) Balance at December 31, 2023 $ 10,017 $ — $ (1,749) $ 8,268 Amounts reclassified from accumulated other comprehensive income to net income for pension and other postretirement benefits plans were $0.2 million, $0.9 million, and $(34) thousand for the years ended December 31, 2023, 2022, and 2021, respectively. Additionally, |
Revenue Recognition | Revenue Recognition The Company earns revenue from its telecommunication operations. The Company recognizes revenue through the following steps: - Identification of the contract with a customer - Identification of the performance obligations in the contract - Determination of the transaction price - Allocation of the transaction price to the performance obligations in the contract - Recognize revenue when, or as, the Company satisfies performance obligations Revenue Recognition- Communications Services Communication services consists of Mobility, Fixed, and Carrier Services revenue. Mobility revenue consists of revenue generated from providing mobile communication services to consumer and business subscribers over the Company’s wireless networks and the sale of related equipment to its subscribers. The service revenue generated is recognized over time as the service is rendered and revenues from equipment are recognized when the equipment is delivered to the customer. Fixed Communications revenue is primarily generated by fixed data and voice telecommunications services to both business and consumer subscribers. The service includes consumer broadband and high speed data solutions for businesses, as well as video services. Revenue from these contracts is recognized over time as the service is rendered to the customer. Fixed revenue also includes revenue from government grants and is recognized in accordance with the grant terms and conditions. For both Fixed and Mobility revenue contracts, management considers transactions where customers purchase subsidized or discounted equipment and services to be a single contract. For these contracts, the transaction price is allocated to the equipment and service based on their standalone selling prices. The standalone selling price is based on the amount the Company charges for the equipment and service to similar customers. Equipment revenue is recognized when the equipment is delivered to customers and service revenue is recognized as service is rendered. Carrier Services revenue is generated from providing services to other telecommunications providers such as wholesale roaming, the leasing of critical network infrastructure such as tower and transport facilities, site maintenance, and international long-distance services. Revenue is recognized over time as the service is rendered to the customer. In July 2019 the Company entered into a Network Build and Maintenance Agreement (the “FirstNet Agreement”) with AT&T Mobility, LLC (“AT&T”) to build a portion of AT&T’s network for the First Responder Network Authority (“FirstNet”) as well as a commercial wireless network in or near the Company’s current operating area in the western United States (the “FirstNet Transaction”). The FirstNet transaction includes construction and service performance obligations. The Company allocated the transaction price of the FirstNet Agreement to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. The construction revenue is recognized when the assets are delivered and the service revenue is recognized over time as the service is rendered to the customer. The current portion of receivables under this agreement is recorded in customer receivable and the long-term portion is recorded in customer receivable long-term on the Company’s balance sheet In May 2023, the Company amended its current roaming agreement and entered into a carrier management services agreement with Verizon Wireless (“Verizon CMS Agreement”). The transaction includes service performance obligations under which revenue is recognized over time. The Company allocates the transaction price of these agreements to each performance obligation based on the relative standalone selling price of each performance obligation in the contracts. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. The Company’s Mobility, Carrier Services, and Fixed communications contracts occasionally include promotional discounts such as free service periods or discounted products. If a contract contains a substantive termination penalty, the transaction price is allocated to the performance obligations based on a standalone selling price resulting in accelerated revenue recognition and the establishment of a contract asset that will be recognized over the life of the contract. If a contract includes a promotional discount but no substantive termination penalty, the discount is recorded in the promotional period and no contract asset is established. The Company’s customers also have the option to purchase additional telecommunication services. Generally, these options are not performance obligations and are excluded from the transaction price because they do not provide the customers with a material right. The Company may charge upfront fees for activation and installation of some of its products and services. These fees are reviewed to determine if they represent a separate performance obligation. If they do not represent a separate performance obligation, the transaction price associated with them is recognized over the life of the customer. If the fees represent a performance obligation they are recognized when delivered to the customer based on the standalone selling price. The Company has certain wholesale roaming agreements that contain stand ready performance obligations and management allocates transaction value to performance obligations based on the standalone selling price. The standalone selling price is the estimated price the Company would charge for the good or service with similar customers in similar circumstances. Management determined the performance obligations were obligations to make the service continuously available and will recognize revenue evenly over the service period. The Company also enters into build and maintenance agreements with its customers. The agreements include construction and service performance obligations. The Company allocates the transaction price to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. 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- Construction Construction revenue is generated from construction services provided to telecommunications customers. The Company recognizes revenue at a point in time when the product is delivered to the customer. Revenue Recognition-Other Revenue Other revenue consists of Managed Services revenue. Managed services revenue is generated from information technology services such as network, application, infrastructure, and hosting services to both business and consumer customers. The revenue is recognized as the service is delivered to customers. Contract Assets and Liabilities The Company recognizes contract assets and liabilities on its balance sheet. Contract assets represent unbilled amounts typically resulting from consumer mobility contracts with both a multiyear service period and a promotional discount. In these contracts the revenue recognized exceeds the amount billed to the customer. The current portion of the contract asset is recorded in prepayments and other current assets and the noncurrent portion is included in other assets on the Company’s balance sheet. Contract liabilities consist of advance payments and billings in excess of revenue recognized. Retail revenue for postpaid customers is generally billed in advance and recognized over the period that the corresponding service is rendered to customers. To the extent the service is not provided by the reporting date the amount is recognized as a contract liability. Prepaid service, including mobile voice and data services, sold to customers is recorded as deferred revenue prior to the commencement of services. The Company also records deferred revenue associated with prepaid service agreements to provide data capacity to customers. For these service agreements, a contract liability is established and recognized as revenue on a straight-line basis over the life of the agreement. The current portion of contract liabilities is recorded in advanced payments and deposits and the noncurrent portion is included in other liabilities on the Company’s balance sheets. The Company acquired $92.7 million of contract liabilities in its acquisition of Alaska Communications. This balance is being amortized into revenue over the remaining life of the revenue contracts. At December 31, 2023, million of this balance remains as a contract liability. |
Contract Acquisition Costs | Contract Acquisition Costs The Company pays sales commissions to its employees and agents for obtaining customer contracts. These costs are incremental because they would not have been incurred if the contract was not obtained. The Company recognizes an asset for these costs and subsequently amortizes the asset on a systematic basis consistent with the pattern of the transfer of the services to the customer. The amortization period, which is between , considers both the original contract period as well as anticipated contract renewals as appropriate. The amortization period also includes contract renewals when renewal commissions are not commensurate with new commissions. The Company estimates contract renewals based on its actual renewals in recent periods. When the expected amortization period is |
Leases | Leases The Company determines if an agreement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities in the Company’s consolidated balance sheets. Finance leases are included in property and equipment in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The present value is calculated using the Company’s incremental borrowing rate based on the information available at the commencement date, as the Company’s leases do not contain an implicit rate. The Company utilizes assumptions based on its existing borrowing facilities and other market specific data to determine its incremental borrowing rate. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include renewal options to extend the lease. The Company includes renewal options that are reasonably certain to be exercised in the initial lease term. When determining whether a renewal option is reasonably certain to be exercised, the Company considers several factors, including the present and anticipated future needs of its customers being serviced by the asset. Lease expense is recognized on a straight-line basis over the lease term. The Company does not separate non-lease components from lease components. |
Operating Expenses | Operating Expenses Cost of communication services and other . Cost of communication services and other are charges that the Company incurs for voice and data transport circuits (in particular, the circuits between its Mobility sites) and its switches, internet capacity, video programming costs, access fees it pays to terminate its calls, telecommunication spectrum fees and direct costs associated within its Managed Services business. Cost of communication services also include expenses associated with developing, operating, upgrading and supporting the Company’s telecommunications networks, including the salaries and benefits paid to employees directly involved in the development and operation of those businesses, as well as credit loss allowances and the cost of handsets and customer resale equipment incurred by its retail businesses. Cost of construction revenue. Selling, general and administrative. Selling, general and administrative expenses include salaries and benefits we pay to sales personnel, customer service expenses and the costs associated with the development and implementation of our promotional and marketing campaigns. Selling, general and administrative expenses also include salaries, benefits and related costs for general corporate functions including executive management, finance and administration, legal and regulatory, facilities, information technology and human resources as well as internal costs associated with our performance of due-diligence and integration related costs associated with acquisition activities. Transaction-related charges. Restructuring expenses US International Telecom Telecom Total Employee termination benefits $ 1,960 $ 3,491 $ 5,451 Contract termination costs 5,777 — 5,777 Total $ 7,737 $ 3,491 $ 11,228 The charge is recorded in Restructuring Expenses on the Company’s Consolidated Income Statements. During the year ended December 31, 2023, the Company paid $5.7 million, recorded a gain of $0.3 million on lease termination, and accrued $5.8 million of the restructuring expenses. In conjunction with the restructuring, the Company terminated $5.6 million of lease right of use assets and $5.9 million of lease liabilities from its balance sheet. Depreciation and amortization expenses. Amortization of intangibles from acquisitions. Goodwill impairment. The Company assesses goodwill for impairment on an annual basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. (Gain) loss on disposition of assets and contingent consideration. The Company sells or disposes assets from time to time. A gain or loss is recorded by comparing the carrying amount of the assets to the proceeds received. The Company also records losses on assets held for sale if the expected sale price exceeds the carrying value of the assets. A gain or loss is also recorded on changes in the fair value of asset or liability classified contingent consideration from business combinations in the postcombination period. |
Accounting for Grants | Accounting for Grants In 2021, the Company adopted Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, which required entities to make specific annual disclosures about transactions with a government. The Company receives funding from the US Government and its agencies under stimulus, the Universal Service Fund (“USF”), the Secure and Trusted Communications Networks Reimbursement Program, and other programs. These funding programs are generally designed to fund telecommunications operations and infrastructure expansion into rural or underserved areas. The funding programs are evaluated to determine if they represent funding related to revenue, capital expenditures or operating activities. Funding for revenue and operating activities are recorded as revenue or contra expense in the Company’s consolidated income statement as the services are provided. Funding for capital expenditures is recorded as a reduction to property, plant and equipment on the Company’s consolidated balance sheets and a future reduction in depreciation expense in the consolidated income statements. Government funding related to revenue and operations are recorded as operating cash inflows and grants for capital expenditures are recorded as investing cash inflows. The Company monitors government funding for grant requirements 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. See Note 9, Government Support and Spectrum Programs |
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 its 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. |
Credit Concentrations and Significant Customers | Credit Concentrations and Significant Customers Historically, the Company has been dependent on a limited number of customers for its wholesale roaming business. For the years ended December 31, 2023 and 2022, no individual customer accounted for more than 10% of consolidated revenue in that year. For the years ended December 31, 2023, and 2022, no customers accounted for more than 10% of the Company’s consolidated accounts receivable. In addition, at December 31, 2023, the Company recorded |
Foreign Currency Gains and Losses | Foreign Currency Gains and Losses The Company translate the assets and liabilities of its foreign subsidiaries from their respective functional currencies, primarily the Guyana Dollar, to US dollars at the appropriate spot rates as of the balance sheet date. Changes in the carrying values of these assets and liabilities attributable to fluctuations in spot rates are recognized in foreign currency translation adjustment, a component of accumulated other comprehensive income. Income statement accounts are translated using the monthly average exchange rates during the year. Monetary assets and liabilities denominated in a currency that is different from a reporting entity’s functional currency must first be remeasured from the applicable currency to the legal entity’s functional currency. The effect of this remeasurement process is reported in other income on the income statement. |
Employee Benefit Plans | Employee Benefit Plans Pension and Postretirement Benefit Plans The Company sponsors pension and other postretirement benefit plans for employees of certain subsidiaries. Net periodic pension expense is recognized in the Company’s income statement. The service cost component of net periodic pension expense is presented with other employee compensation within income from operations. Other components of net periodic pension expense, such as interest cost, expected return on plan assets, and amortization of actuarial gains and losses are presented in other income. The Company recognizes a pension or other postretirement benefit plan’s funded status as either an asset or liability in its consolidated balance sheet. Actuarial gains and losses are deferred, reported as a component of other comprehensive income, and amortized through net periodic pension expense in subsequent periods. Multi-employer Defined Benefit Plan Certain of the Company’s employees in the US Telecom segment participate in a multi-employer defined pension plan. The Company pays and expenses a contractual hourly amount based on employee classification or base compensation. The accumulated benefits and plan assets are not determined for, or allocated separately to, individual employers. |
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, 2023 and 2022 are summarized as follows: December 31, 2023 Significant Other Quoted Prices in Unobservable Active Markets Inputs Description (Level 1) (Level 3) Total Short term investments $ 300 $ — $ 300 Other investments — 1,197 1,197 Employee benefit plan investments 3,014 — 3,014 Alaska Communications redeemable common units — (11,063) (11,063) Alloy redeemable common units — (14,760) (14,760) Warrants on Alaska Communications redeemable common units — (249) (249) Total assets and liabilities measured at fair value $ 3,314 $ (24,875) $ (21,561) December 31, 2022 Significant Other Quoted Prices in Unobservable Active Markets Inputs Description (Level 1) (Level 3) Total Short term investments $ 300 $ — $ 300 Other investments — 1,616 1,616 Alaska Communications redeemable common units — (22,557) (22,557) Alloy redeemable common units — (14,760) (14,760) Warrants on Alaska Communications redeemable common units — (654) (654) Total assets and liabilities measured at fair value $ 300 $ (36,355) $ (36,055) Money Market Funds As of December 31, 2021, this asset class consisted of a money market portfolio that comprises Federal government and US 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. Other Investments The Company holds investments in equity securities consisting of noncontrolling investments in privately held companies. The investments are accounted for using equity method accounting, the measurement alternative for investments without a readily determinable fair value, or fair value. In the first quarter of 2021, the Company began to account for its former India solar operations under the equity method of accounting. The fair value investments are valued using level 3 inputs and the Company used the income approach to fair value the investment. The inputs consisted of a discount rate and future cash flows calculated based on the investment attributes. A roll forward of the investments is below: Investments Without a Readily Determinable Fair Value Fair Value Investments Equity Investments Total Balance, December 31, 2021 $ 17,820 $ 1,925 $ 28,699 $ 48,444 Sale of Investments(1) — — (13,212) (13,212) Income (Loss) recognized — 435 (2,234) (1,799) Contributions / (distributions) — (744) 2,750 2,006 Foreign currency loss — — (2,040) (2,040) Gain recognized 4,770 — — 4,770 Balance, December 31, 2022 $ 22,590 $ 1,616 $ 13,963 $ 38,169 Income (Loss) recognized 2,431 316 93 2,840 Contributions / (distributions) 425 (735) 630 320 Foreign currency loss — — 1,578 1,578 Transfers 16,264 — (16,264) — Balance, December 31, 2023 $ 41,710 $ 1,197 $ - $ 42,907 (1) During 2022, the Company sold an investment previously accounted for using the equity method for $15.7 million of cash. The investment had a book value of $13.2 and the Company recognized a gain of $2.5 million on the transaction. During the year ended December 31, 2023, the Company lost the ability to exert significant influence over its India solar investment. As a result, the Company transferred $16.3 million from equity method investments to investments without a readily determinable fair value and the accounting for the investment changed to the cost method from the equity method of accounting. Before transitioning to the cost method, the Company recorded income of $0.1 million and reclassified $1.3 million from accumulated other comprehensive income into income. These investments are included with other assets on the consolidated balance sheets. Employee benefit plan investments The Company has deferred compensation arrangements available to covered employees. The obligations of the plans will be settled in cash and the assets are recorded in other current assets on the consolidated balance sheets. Redeemable Common Units and Warrants The Company issued redeemable common units, and warrants to purchase additional common units, in a subsidiary of the Company in conjunction with its acquisition of Alaska Communications. The Company also issued redeemable common units in a subsidiary in conjunction with its acquisition of Sacred Wind. (Refer to Note 5). The instruments are redeemable at the option of the holder. Both the common units and warrants to purchase common units are recorded at fair value in the Company’s financial statements. The Sacred Wind put option begins in November 2026 and the Alaska Communications put options begin at the earlier of a qualifying initial public offering of Alaska Communications or July 2028. The Company calculates the fair value of the instruments using a discounted cash flows and market approach with level 3 inputs. 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 the interest rate swap is measured using Level 2 inputs. The fair value of long-term debt is estimated using Level 2 inputs. At December 31, 2023, the fair value of long-term debt, including the current portion, was $571.6 million and its book value was $562.9 million. At December 31, 2022, the fair value of long-term debt, including the current portion, was $473.7 million and its book value was $467.2 million.z |
Net Loss Per Share | Net Loss Per Share The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share (in thousands): Year ended December 31, 2023 2022 2021 Numerator: Net loss attributable to ATN International, Inc. stockholders- Basic (14,538) (5,645) (22,108) Less: Preferred dividends (4,942) (4,856) (1,962) Net Loss attributable to ATN International, Inc. common stockholders- Diluted $ (19,480) $ (10,501) $ (24,070) Denominator: Weighted-average shares outstanding- Basic 15,595 15,751 15,867 Weighted-average shares outstanding- Diluted 15,595 15,751 15,867 |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests The redeemable noncontrolling interests in the accompanying consolidated balance sheets reflect common and preferred units issued in conjunction with the Company’s acquisition of Alaska Communication and common units issued in conjunction with the Company’s acquisition of Sacred Wind. (Refer to Note 5). Generally, the holders of these instruments have the ability to sell the instrument to a subsidiary of the Company in a future period. The common redeemable noncontrolling interests are recorded at the greater of historical cost or fair value. Historical cost is calculated as the original investment adjusted for subsequent capital contributions and distributions as well as the applicable share of earnings or losses. The fair value is calculated using a market approach and level 3 inputs. If the historical cost is more than the fair value at the end of the reporting period no adjustment is recorded, if the fair value is greater than the historical cost the value of the instrument is adjusted to the fair value with the offsetting amount recorded to retained earnings. The preferred redeemable noncontrolling interests are recorded at cost plus accrued dividends. Redeemable Noncontrolling Interests Sacred Wind Enterprises In connection with the Sacred Wind Transaction (see Note 5), the Company has accounted for equity consideration issued as redeemable noncontrolling interests in its consolidated financial statements. The redeemable noncontrolling interests consists of $14.8 million of redeemable common units. The common units contain a put option allowing the holder to sell the common units to a subsidiary of the Company at the then fair market value. The fair value of the common units is Alaska Communications In connection with the Alaska Transaction (see Note 5), the Company has accounted for the Freedom 3 Investment as redeemable noncontrolling interests in its consolidated financial statements. The redeemable noncontrolling interests consists of redeemable common units and redeemable preferred units. The common units contain a put option allowing the holder to sell the common units to a subsidiary of the Company at the then fair market value. The put option begins at the earlier of a future initial public offering of the Alaska Communications operations or July 2028. The fair value of the common units was $11.1 million and $22.5 million as of December 31, 2023 and 2022, respectively. The redeemable preferred equity carries a 9% preferred dividend which compounds quarterly. The preferred units contain a put option allowing the holder to sell the preferred units to a subsidiary of the Company at the unpaid issuance price plus unpaid dividends. The put option begins at the earlier of a future initial public offering of the Alaska Communications operations or July 2028. The preferred units had a book value of $60.1 million and $55.2 million as of December 31, 2023 and 2022, respectively. The preferred units book value includes an unpaid preferred dividend of million as of December 31, 2023 and 2022, respectively. Lastly, the Company issued warrants in the Alaska Communications operations allowing the holders to purchase an additional For the year ended December 31, 2023 and 2022 the Company allocated losses of $11.0 million and $4.3 million, respectively, to the redeemable common units representing their proportionate share of operating losses. The Company then compared the book value of the common units to the fair value and the fair value exceeded the book value. As a result, the book value was decreased by The following table provides a roll forward of the activity related to the Company’s redeemable noncontrolling interests for year ended December 31, 2023 and 2022: Redeemable Preferred Units Redeemable Common Units Total Redeemable Noncontrolling Interests Balance, December 31, 2022 $ 55,152 $ 37,317 $ 92,469 Accrued preferred dividend 4,942 — 4,942 Allocated net loss — (10,972) (10,972) Change in fair value — (522) (522) Balance, December 31, 2023 $ 60,094 $ 25,823 $ 85,917 Redeemable Preferred Units Redeemable Common Units Total Redeemable Noncontrolling Interests Balance, December 31, 2021 $ 50,296 $ 22,640 $ 72,936 Issuance of 591 common units — 14,760 14,760 Accrued preferred dividend 4,856 — 4,856 Allocated net loss — (4,317) (4,317) Change in fair value — 4,234 4,234 Balance, December 31, 2022 $ 55,152 $ 37,317 $ 92,469 |
Stock-Based Compensation | Stock-Based Compensation The Company applies the fair value recognition provision of ASU 2018-07, “ Compensation—Stock Compensation (Topic 718) |
Business combinations | Business Combinations The Company accounts for business combinations using the acquisition method of accounting, under which the purchase price of the acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. Contingent consideration obligations that are elements of the consideration transferred are recognized as of the acquisition date as part of the fair value transferred in exchange for the acquired business. Postcombination changes in the fair value of asset or liability classified contingent consideration are recorded in operating income. Acquisition-related costs incurred in connection with a business combination are expensed as incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes,” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The Company adopted ASU 2019-12 effective January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In October 2021, the FASB issued ASC 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” (ASU 2021-08). ASU 2021-08 provides guidance for recognizing and measuring contract assets and contract liabilities acquired in a business combination. Under the standard, revenue contracts are accounted for consistent with how they were recognized and measured in the acquiree’s financial statements. This is a change from previous standards which require contract asset and liabilities to be recognized at fair value. The Company prospectively adopted this standard in the fourth quarter of 2021 and will apply it to all acquisitions during the year ended December 31, 2021 and thereafter. The adoption will generally result in the Company recognizing larger contract liabilities in business combinations. Refer to Note 5. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, which required entities to make specific annual disclosures about transactions with a government. The new standard is effective for fiscal years beginning after December 15, 2021. The Company adopted the standard in the fourth quarter of 2021 and it did not have a material impact on the Company’s disclosures. Going forward the Company will evaluate the disclosure requirements based on its participation in government programs. In December 2023, the FASB released ASU 2023-09, titled "Enhancements to Income Tax Disclosures," with the aim of improving the clarity and usefulness of income tax disclosures. The update focuses primarily on enhancing disclosures related to rate reconciliation and income taxes paid. ASU 2023-09 becomes effective for annual reporting periods starting after December 15, 2024, with early adoption permitted. While the changes prescribed by ASU 2023-09 are implemented prospectively, retrospective application is also allowed. The Company has chosen not to early adopt this standard and is currently assessing its potential impact on our consolidated financial statements and accompanying disclosures. |
ORGANIZATION AND BUSINESS OPE_2
ORGANIZATION AND BUSINESS OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 | International Telecom US Telecom Services Markets Tradenames Services Markets Tradenames Mobility Services Bermuda, Guyana, US Virgin Islands One, GTT, Viya Mobility Services United States (rural markets) Choice, Choice NTUA Wireless Fixed Services Bermuda, Cayman Islands, Guyana, US Virgin Islands One, Logic, GTT, Viya Fixed Services United States Alaska Communications, Commnet, Choice, Choice NTUA Wireless, Sacred Wind Communications, Ethos, Deploycom Carrier Services Bermuda, Guyana, US Virgin Islands One, GTT, Viya Carrier Services United States Alaska Communications, Commnet, Essextel, Sacred Wind Communications Managed Services Bermuda, Cayman Islands, US Virgin Islands, Guyana Fireminds, One, Logic, GTT, Viya, Brava Managed Services United States Alaska Communications, Choice |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 and Postretirement Benefit Translation Obligations Adjustment Other Total Balance at December 31, 2020 $ (570) $ 997 $ (149) $ 278 Unrecognized actuarial gain, net of tax of $(0.1) million 5,014 — — 5,014 Foreign currency translation adjustment — (689) — (689) Interest rate swap — — 170 170 Balance at December 31, 2021 4,444 308 21 4,773 Unrecognized actuarial gain, net of tax of $(0.2) million 2,428 — — 2,428 Pension settlement, net of tax of $(0.8) million 915 — — 915 Reclassification of foreign currency losses on investments sold, net of tax of $0.2 million — (500) — (500) Foreign currency translation adjustment — (1,385) — (1,385) Interest rate swap — — (21) (21) Balance at December 31, 2022 7,787 (1,577) — 6,210 Unrecognized actuarial gain, net of tax of $0 2,035 — — 2,035 Pension settlement, net of tax of $(0.2) million 195 — — 195 Reclassification of foreign currency losses on investments, net of tax of $0 — 1,348 — 1,348 Foreign currency translation adjustment — 229 — 229 Interest rate swap, net of tax of $0.6 million — — (1,749) (1,749) Balance at December 31, 2023 $ 10,017 $ — $ (1,749) $ 8,268 |
Schedule of assets and liabilities of the Company measured at fair value on a recurring basis | December 31, 2023 Significant Other Quoted Prices in Unobservable Active Markets Inputs Description (Level 1) (Level 3) Total Short term investments $ 300 $ — $ 300 Other investments — 1,197 1,197 Employee benefit plan investments 3,014 — 3,014 Alaska Communications redeemable common units — (11,063) (11,063) Alloy redeemable common units — (14,760) (14,760) Warrants on Alaska Communications redeemable common units — (249) (249) Total assets and liabilities measured at fair value $ 3,314 $ (24,875) $ (21,561) December 31, 2022 Significant Other Quoted Prices in Unobservable Active Markets Inputs Description (Level 1) (Level 3) Total Short term investments $ 300 $ — $ 300 Other investments — 1,616 1,616 Alaska Communications redeemable common units — (22,557) (22,557) Alloy redeemable common units — (14,760) (14,760) Warrants on Alaska Communications redeemable common units — (654) (654) Total assets and liabilities measured at fair value $ 300 $ (36,355) $ (36,055) |
Schedule of investments | Investments Without a Readily Determinable Fair Value Fair Value Investments Equity Investments Total Balance, December 31, 2021 $ 17,820 $ 1,925 $ 28,699 $ 48,444 Sale of Investments(1) — — (13,212) (13,212) Income (Loss) recognized — 435 (2,234) (1,799) Contributions / (distributions) — (744) 2,750 2,006 Foreign currency loss — — (2,040) (2,040) Gain recognized 4,770 — — 4,770 Balance, December 31, 2022 $ 22,590 $ 1,616 $ 13,963 $ 38,169 Income (Loss) recognized 2,431 316 93 2,840 Contributions / (distributions) 425 (735) 630 320 Foreign currency loss — — 1,578 1,578 Transfers 16,264 — (16,264) — Balance, December 31, 2023 $ 41,710 $ 1,197 $ - $ 42,907 |
Schedule of computation of basic and diluted earnings per share | The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share (in thousands): Year ended December 31, 2023 2022 2021 Numerator: Net loss attributable to ATN International, Inc. stockholders- Basic (14,538) (5,645) (22,108) Less: Preferred dividends (4,942) (4,856) (1,962) Net Loss attributable to ATN International, Inc. common stockholders- Diluted $ (19,480) $ (10,501) $ (24,070) Denominator: Weighted-average shares outstanding- Basic 15,595 15,751 15,867 Weighted-average shares outstanding- Diluted 15,595 15,751 15,867 |
Schedule of Restructuring expenses | US International Telecom Telecom Total Employee termination benefits $ 1,960 $ 3,491 $ 5,451 Contract termination costs 5,777 — 5,777 Total $ 7,737 $ 3,491 $ 11,228 |
Schedule of rollforward activity related to the Company's redeemable noncontrolling interests | Redeemable Preferred Units Redeemable Common Units Total Redeemable Noncontrolling Interests Balance, December 31, 2022 $ 55,152 $ 37,317 $ 92,469 Accrued preferred dividend 4,942 — 4,942 Allocated net loss — (10,972) (10,972) Change in fair value — (522) (522) Balance, December 31, 2023 $ 60,094 $ 25,823 $ 85,917 Redeemable Preferred Units Redeemable Common Units Total Redeemable Noncontrolling Interests Balance, December 31, 2021 $ 50,296 $ 22,640 $ 72,936 Issuance of 591 common units — 14,760 14,760 Accrued preferred dividend 4,856 — 4,856 Allocated net loss — (4,317) (4,317) Change in fair value — 4,234 4,234 Balance, December 31, 2022 $ 55,152 $ 37,317 $ 92,469 |
REVENUE AND RECEIVABLES (Tables
REVENUE AND RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE AND RECEIVABLES | |
Summary of revenues | Year Ended 2023 2022 2021 Services transferred over time US Telecom $ 326,966 $ 301,309 $ 188,405 International Telecom 347,769 332,507 319,357 Solar - - 418 Total 674,735 633,816 508,180 Goods and services transferred at a point in time US Telecom 18,059 29,203 46,433 International Telecom 17,086 14,934 10,928 Total 35,145 44,137 57,361 Total revenue accounted for under ASC 606 709,880 677,953 565,541 |
Summary of contracts asset and liabilities | Contract assets and liabilities consisted of the following (amounts in thousands): December 31, 2023 December 31, 2022 $ Change % Change Contract asset – current $ 3,616 $ 2,932 $ 684 23.3 % Contract asset – noncurrent 5,509 3,775 1,734 45.9 % Contract liability – current (30,990) (27,284) (3,706) 13.6 % Contract liability – noncurrent (64,035) (72,543) 8,508 (11.7) % Net contract liability $ (85,900) $ (93,120) $ 7,220 (7.8) % |
Schedule of activity in allowances for credit losses | Year ended December 31, 2023 December 31, 2022 Balance at beginning of period $ 15,171 $ 13,885 Current period provision for expected losses 5,012 6,695 Write-offs charged against the allowance (4,340) (5,518) Recoveries collected 519 109 Balance at end of period $ 16,362 $ 15,171 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
Summary of components of lease expense | The components of lease expense were as follows (in thousands): Year ended December 31, 2023 December 31, 2022 December 31, 2021 Operating lease cost: Operating lease cost $ 23,232 $ 24,531 $ 20,386 Short-term lease cost 2,866 2,575 2,402 Variable lease cost 4,896 3,186 3,874 Total operating lease cost $ 30,994 $ 30,292 $ 26,662 Finance lease cost: Amortization of right-of-use asset $ 2,930 $ 3,060 $ 2,561 Variable costs 814 838 792 Interest costs 372 381 — Total finance lease cost $ 4,116 $ 4,279 $ 3,353 |
Summary of weighted-average remaining lease term and discount rate | December 31, 2023 December 31, 2022 Weighted-average remaining lease term Operating leases 13.3 years 12.4 years Financing leases 9.2 years 9.3 years Weighted-average discount rate Operating leases 6.3% 6.0% Financing leases 6.6% 6.7% |
Summary of maturities of operating lease liabilities | Maturities of lease liabilities as of December 31, 2023 were as follows (in thousands): Operating Leases Financing Leases 2024 18,048 2,030 2025 16,022 1,488 2026 11,755 601 2027 9,327 534 2028 7,807 505 Thereafter 80,637 2,145 Total lease payments 143,596 7,303 Less imputed interest (57,133) (1,662) Total $ 86,463 $ 5,641 Maturities of lease liabilities as of December 31, 2022 were as follows (in thousands): Operating Leases Financing Leases 2023 $ 19,417 $ 1,403 2024 17,836 1,342 2025 14,805 978 2026 10,505 504 2027 8,096 495 Thereafter 76,452 2,651 Total lease payments 147,111 7,373 Less imputed interest (53,794) (1,914) Total $ 93,317 $ 5,459 |
Summary of maturities of finance lease liabilities | Maturities of lease liabilities as of December 31, 2023 were as follows (in thousands): Operating Leases Financing Leases 2024 18,048 2,030 2025 16,022 1,488 2026 11,755 601 2027 9,327 534 2028 7,807 505 Thereafter 80,637 2,145 Total lease payments 143,596 7,303 Less imputed interest (57,133) (1,662) Total $ 86,463 $ 5,641 Maturities of lease liabilities as of December 31, 2022 were as follows (in thousands): Operating Leases Financing Leases 2023 $ 19,417 $ 1,403 2024 17,836 1,342 2025 14,805 978 2026 10,505 504 2027 8,096 495 Thereafter 76,452 2,651 Total lease payments 147,111 7,373 Less imputed interest (53,794) (1,914) Total $ 93,317 $ 5,459 |
Schedule of maturities of future undiscounted lease payments | 2024 $ 7,039 2025 6,760 2026 6,398 2027 5,212 2028 4,865 Thereafter 12,510 Total future lease payments $ 42,784 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions and Dispositions | |
Schedule of pro forma results of operations | (unaudited) Year ended December 31, 2021 As Pro- Reported Forma Revenue $ 602,707 $ 738,472 Net loss attributable to ATN International, Inc. Stockholders (22,108) (20,022) Earnings per share: Basic (1.52) (1.26) Diluted (1.52) (1.26) |
Schedule of assets and liabilities transferred | Consideration Received $ 35,218 Assets and liabilities disposed Current assets 4,899 Property, plant and equipment 45,891 Other assets 439 Current liabilities (759) Net assets disposed $ 50,470 Consideration less net assets disposed (15,252) Foreign currency losses reclassified from accumulated other comprehensive income (6,258) Loss on sale (21,510) Transaction costs (1,283) Loss on sale including transaction costs $ (22,793) |
Sacred Wind Enterprises | |
Acquisitions and Dispositions | |
Schedule of preliminary allocation of the total consideration transferred to the acquired assets and assumed liabilities | The table below represents the purchase price allocation of the total consideration transferred to the acquired assets and assumed liabilities based on management’s estimate of their acquisition date fair values (amounts in thousands): Consideration Transferred $ 44,560 Purchase price allocation: Cash and cash equivalents 2,619 Restricted cash 6,747 Current assets 4,888 Operating lease right of use assets 989 Fixed assets 85,255 Intangible assets 1,232 Current liabilities (10,176) Lease liabilities (967) Deferred taxes (14,388) Debt (31,639) Net assets acquired $ 44,560 |
Alaska communications | |
Acquisitions and Dispositions | |
Schedule of preliminary allocation of the total consideration transferred to the acquired assets and assumed liabilities | The table below represents the allocation of the total consideration transferred to the acquired assets and assumed liabilities based on management’s estimate of their acquisition date fair values (amounts in thousands): Consideration Transferred $ 353,280 Noncontrolling interests 470 Total value to allocate 353,750 Purchase price allocation: Cash and cash equivalents 10,553 Restricted cash 1,326 Short-term investments 434 Accounts receivable 30,453 Inventory, materials and supplies 1,374 Prepayments and other current assets 8,038 Fixed assets 408,694 Telecommunication licenses 683 Intangible assets 44,333 Operating lease right-of-use assets 60,402 Other assets 2,387 Accounts payable and accrued liabilities (39,188) Accrued taxes (3,766) Advance payments and deposits (15,842) Current portion of lease liabilities (2,425) Deferred income taxes (17,040) Lease liabilities, excluding current portion (44,234) Other liabilities (92,432) Net assets acquired $ 353,750 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FIXED ASSETS: | |
Schedule of property, plant and equipment | As of December 31, 2023 and 2022, property, plant and equipment consisted of the following (in thousands): Useful Life (in Years) 2023 2022 Telecommunications equipment and towers 5 -15 $ 1,539,533 $ 1,479,633 Office and computer equipment 3 -10 148,693 151,804 Buildings 15-39 138,243 136,145 Transportation vehicles 3 -10 27,480 27,879 Leasehold improvements Shorter 22,424 22,934 Land — 11,652 11,308 Furniture and fixtures 5 -10 11,438 11,592 Total property, plant and equipment 1,899,463 1,841,295 Construction in progress 192,815 136,683 Total property, plant and equipment 2,092,278 1,977,978 Less: Accumulated depreciation (1,011,619) (922,024) Net fixed assets $ 1,080,659 $ 1,055,954 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Finite-lived intangible assets | |
Schedule of changes in the carrying amount of goodwill, by operating segment | The table below discloses goodwill recorded in each of the Company’s segments and accumulated impairment changes (in thousands): International US Telecom Telecom Consolidated Balance at December 31, 2022 Gross $ 25,423 $ 35,268 $ 60,691 Accumulated Impairment (20,587) — (20,587) Net 4,836 35,268 40,104 Balance at December 31, 2023 Gross 25,423 35,268 60,691 Accumulated Impairment (20,587) — (20,587) Net $ 4,836 $ 35,268 $ 40,104 |
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, were as follows (in thousands): International US Telecom Telecom Consolidated Balance at December 31, 2021 $ 34,798 $ 78,968 $ 113,766 Acquired licenses — 1,068 1,068 Dispositions — (1,136) (1,136) Balance at December 31, 2022 $ 34,798 $ 78,900 $ 113,698 Acquired licenses — — — Dispositions — (379) (379) Balance at December 31, 2023 $ 34,798 $ 78,521 $ 113,319 |
Customer relationships | |
Finite-lived intangible assets | |
Schedule of future amortization of intangible assets | Future amortization of customer relationships is as follows (in thousands): International Telecom US Telecom 2024 $ 576 $ 5,748 2025 576 2,779 2026 576 — 2027 576 — 2028 275 — Thereafter 62 — Total $ 2,641 $ 8,527 |
Trade name licenses | |
Finite-lived intangible assets | |
Schedule of future amortization of intangible assets | International Telecom US Telecom 2024 $ 307 $ 964 2025 307 879 2026 209 769 2027 37 718 2028 — 657 Thereafter — 3,570 Total $ 860 $ 7,557 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LONG-TERM DEBT | |
Schedule of quarterly repayments | 2023 CoBank Term Loan Quarterly Payment Dates 2023 CoBank Term Loan Quarterly Repayments December 31, 2023 – June 30, 2025 $812,500 (2.5% per annum) December 31, 2025 – June 30, 2026 $1,625,000 (5% per annum) December 31, 2026 – June 30, 2029 $2,437,500 (7.5% per annum) |
Schedule of future principal repayments annual maturities of the Company's debt instruments | The table below summarizes the annual maturities of the Company’s debt instruments (amounts in thousands). Customer US International Corporate and Total Receivable Telecom Telecom Other Debt Credit Facility 2024 $ 16,538 $ 4,502 $ 3,250 $ 24,290 $ 7,110 2025 14,969 — 4,875 19,844 7,428 2026 248,469 60,000 8,125 316,594 7,761 2027 3,723 — 9,750 13,473 8,111 2028 3,858 — 136,807 140,665 8,478 Thereafter 10,191 — — 10,191 7,650 Total 297,748 64,502 162,807 525,057 46,538 Debt Discounts (4,142) (247) (3,798) (8,187) (485) Book Value $ 293,606 $ 64,255 $ 159,009 $ 516,870 $ 46,053 |
GOVERNMENT SUPPORT AND SPECTR_2
GOVERNMENT SUPPORT AND SPECTRUM PROGRAMS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |
Summary of revenues | Year Ended 2023 2022 2021 Services transferred over time US Telecom $ 326,966 $ 301,309 $ 188,405 International Telecom 347,769 332,507 319,357 Solar - - 418 Total 674,735 633,816 508,180 Goods and services transferred at a point in time US Telecom 18,059 29,203 46,433 International Telecom 17,086 14,934 10,928 Total 35,145 44,137 57,361 Total revenue accounted for under ASC 606 709,880 677,953 565,541 |
Network Connectivity for Eligible Communities | |
Disaggregation of Revenue [Line Items] | |
Schedule of grant funds | Amount Grants awarded, December 31, 2022 $ 80,197 New grants 34,526 Construction complete (8,305) Transferred grants (6,269) Grants awarded, December 31, 2023 $ 100,149 |
Communication services | |
Disaggregation of Revenue [Line Items] | |
Summary of revenues | Year ended December 31, 2023 US Telecom International Telecom Total High cost support $ 9,260 $ 5,571 $ 14,831 CAF II 27,260 — 27,260 RDOF 2,432 — 2,432 ECF 26,346 — 26,346 RHC 11,995 — 11,995 Other 23,478 1,250 24,728 Total $ 100,771 $ 6,821 $ 107,592 Year ended December 31, 2022 US Telecom International Telecom Total High cost support $ 4,459 $ 7,862 $ 12,321 CAF II 27,264 — 27,264 RDOF 1,954 — 1,954 RHC 11,018 — 11,018 Other 15,638 52 15,690 Total $ 60,333 $ 7,914 $ 68,247 Year ended December 31, 2021 US Telecom International Telecom Total High cost support $ 2,449 $ 13,907 $ 16,356 CAF II 16,330 — 16,330 RHC 5,778 — 5,778 Other 8,185 — 8,185 Total $ 32,742 $ 13,907 $ 46,649 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EQUITY | |
Schedule of shares repurchased | Shares Aggregate Cost Average Year ended December 31, Repurchased (in thousands) Repurchase Price 2023 423,328 $ 14,999 $ 35.43 2022 23,714 942 39.70 2021 244,798 10,546 43.08 |
Schedule of repurchases of shares from employees to satisfy tax withholding and stock exercise obligations | Shares Aggregate Cost Average Year ended December 31, Repurchased (in thousands) Repurchase Price 2023 36,951 $ 1,473 $ 39.86 2022 33,401 1,169 35.01 2021 33,271 1,713 51.49 |
Summary of restricted stock activity | Weighted Avg. Shares Fair Value Unvested as of January 1, 2023 260,497 $ 43.86 Granted 151,560 38.08 Forfeited (9,354) 41.95 Vested and issued (118,419) 44.99 Unvested as of December 31, 2023 284,284 $ 40.37 Weighted Avg. Shares Fair Value Unvested as of January 1, 2022 228,068 $ 51.05 Granted 152,430 38.59 Forfeited (12,486) 46.52 Vested and issued (107,515) 51.33 Unvested as of December 31, 2022 260,497 $ 43.86 |
Schedule of performance stock activity | Weighted Avg. Shares Fair Value Unvested as of January 1, 2023 99,450 $ 52.54 Granted 59,100 45.10 Forfeited — — Vested and issued — — Unvested as of December 31, 2023 158,550 $ 49.77 Weighted Avg. Shares Fair Value Unvested as of January 1, 2022 43,000 $ 59.77 Granted 56,450 47.03 Forfeited — — Vested and issued — — Unvested as of December 31, 2022 99,450 $ 52.54 |
Summary of stock option activity | Year Ended December 31, 2022 Weighted Average Remaining Number of Weighted Avg. Contractual Aggregate Options Exercise Price Term (Years) Intrinsic Value Outstanding at January 1, 2022 5,000 $ 71.43 Granted — — Forfeited — — Expired (5,000) — Exercised — — Outstanding at December 31, 2022 — — — $ — Vested and expected to vest as of December 31, 2022 — — — $ — Exercisable at December 31, 2022 — — — $ — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of components of income before income taxes | The components of income before income taxes for the years ended December 31, 2023, 2022 and 2020 are as follows (in thousands): 2023 2022 2021 Domestic $ (57,289) $ (37,777) $ (38,407) Foreign 29,750 29,721 15,720 Total $ (27,539) $ (8,056) $ (22,687) |
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, 2023, 2022 and 2021 (in thousands): 2023 2022 2021 Tax computed at statutory US federal income tax rates $ (5,783) $ (1,681) $ (4,760) Noncontrolling interest (62) 844 (158) Foreign tax rate differential (8,853) (6,525) (4,520) Over (under) provided in prior periods (179) (437) (78) Nondeductible expenses 1,806 2,111 1,429 Capitalized transactions costs 56 134 898 Change in tax reserves 2,783 4,052 2,524 State Taxes, net of federal benefit (1,776) (1,126) (1,399) Change in valuation allowance 2,467 2,117 3,575 Investment Tax Credit 84 84 101 Stock-based compensation 812 696 510 Deferred income tax revaluation (140) (742) - Total Income Tax Expense $ (8,785) $ (473) $ (1,878) |
Schedule of components of income tax expense (benefit) | The components of income tax expense (benefit) for the years ended December 31, 2023, 2022 and 2021 are as follows (in thousands): \ 2023 2022 2021 Current: United States—Federal $ 921 $ 302 $ 460 United States—State 404 20 2 Foreign 6,646 6,657 4,272 Total current income tax expense $ 7,971 $ 6,979 $ 4,734 Deferred: United States—Federal $ (7,786) $ (4,527) $ (5,800) United States—State (2,781) (1,895) (1,402) Foreign (6,189) (1,030) 590 Total deferred income tax expense (benefit) $ (16,756) $ (7,452) $ (6,612) Consolidated: United States—Federal $ (6,865) $ (4,225) $ (5,340) United States—State (2,377) (1,875) (1,400) Foreign 457 5,627 4,862 Total income tax expense (benefit) $ (8,785) $ (473) $ (1,878) |
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, 2023 and 2022 (in thousands): 2023 2022 Deferred tax assets: Accounts receivable and inventory allowances $ 2,552 $ 2,567 Basis in investments 3,795 4,387 Accrued expenses 7,331 7,063 Deferred revenue 26,768 27,526 Employee benefits 4,515 6,690 Other, net 14,764 6,892 Net operating losses 78,876 63,713 Tax Credits 5,659 2,995 Operating lease liability 23,370 24,451 Total deferred tax asset 167,630 146,284 Deferred tax liabilities: Acquired intangible assets, property and equipment 105,729 106,529 Right-of-use asset 27,099 27,796 Prepaid expense 250 197 Total deferred tax liabilities 133,078 134,522 Valuation allowance (43,118) (35,759) Net deferred tax liabilities $ (8,566) $ (23,997) |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities are reflected in the accompanying consolidated balance sheets as follows (in thousands): 2023 2022 Deferred tax assets: Long term $ 11,209 $ 4,653 Total deferred tax asset $ 11,209 $ 4,653 Deferred tax liabilities: Long term $ (19,775) $ (28,650) Total deferred tax liabilities $ (19,775) $ (28,650) Net deferred tax liabilities $ (8,566) $ (23,997) |
Schedule of activity related to unrecognized tax benefits | The following shows the activity related to unrecognized tax benefits (not including interest and penalty) during the three years ended December 31, 2023 (in thousands): Gross unrecognized uncertain tax benefits at December 31, 2020 $ 33,878 Increase in unrecognized tax benefits taken during a prior period (216) Increase in unrecognized tax benefits taken during the current period 3,880 Increase in unrecognized tax benefits acquired as part of a business combination 8,275 Lapse in statute of limitations (2,103) Settlements — Gross unrecognized uncertain tax benefits at December 31, 2021 $ 43,714 Increase in unrecognized tax benefits taken during a prior period — Increase in unrecognized tax benefits taken during the current period 5,080 Increase in unrecognized tax benefits acquired as part of a business combination (6,825) Lapse in statute of limitations (2,050) Settlements — Gross unrecognized uncertain tax benefits at December 31, 2022 $ 39,919 Increase in unrecognized tax benefits taken during a prior period — Increase in unrecognized tax benefits taken during the current period 2,598 Increase in unrecognized tax benefits acquired as part of a business combination — Lapse in statute of limitations (2,449) Settlements — Gross unrecognized uncertain tax benefits at December 31, 2023 $ 40,068 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RETIREMENT PLANS | |
Schedule of weighted-average rates assumed in the actuarial calculations for the pension plan and other postretirement benefit plans | 2023 2022 2021 Discount Rate – Pension Benefit Obligation 4.3 % 5.4 % 2.9 % Discount Rate – Pension Benefit Cost 5.4 % 2.9 % 2.6 % Discount Rate – Postretirement Benefit Obligation 5.2 % 5.4 % 2.8 % Discount Rate – Postretirement Benefit Cost 5.2 % 2.8 % 2.5 % Expected long-term return on plan assets 5.3 % 5.2 % 5.3 % |
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 2023 and 2022 (in thousands): 2023 2022 Pension Benefits Postretirement Benefits Pension Benefits Postretirement Benefits Projected benefit obligations: Balance at beginning of year: $ 66,175 $ 3,624 $ 100,624 $ 5,343 Service cost 90 65 151 124 Interest cost 3,323 182 2,373 139 Benefits and settlements paid (6,899) (309) (18,490) (396) Actuarial (gain) loss 1,460 63 (16,758) (1,586) Settlement - — (1,725) - Balance at end of year $ 64,149 $ 3,625 $ 66,175 $ 3,624 Plan net assets: Balance at beginning of year: $ 71,552 $ — $ 103,718 $ — Actual return on plan assets 7,142 — (13,188) — Company contributions 207 309 — 396 Benefits and settlements paid (7,397) (309) (18,978) (396) Balance at end of year $ 71,504 $ — $ 71,552 $ — Over/ (Under) funded status of plan $ 7,355 $ (3,625) $ 5,377 $ (3,624) |
Schedule of funded status of the Company's pension and other retirement benefit plans | 2023 Viya Pension Benefit Alaska Pension Benefit Viya Postretirement Benefits Alaska Postretirement Benefits Projected benefit obligation $ 53,075 $ 11,074 $ 3,341 $ 284 Plan Net Assets 62,142 9,362 — — Over/ (Under) funded status of plan $ 9,067 $ (1,712) $ (3,341) $ (284) 2022 GTT Pension Benefit Viya Pension Benefit Alaska Pension Benefit Viya Postretirement Benefits Alaska Postretirement Benefits Projected benefit obligation $ 2,038 $ 52,832 $ 11,305 $ 3,337 $ 287 Plan Net Assets 2,038 60,132 9,382 — — Over/ (Under) funded status of plan $ — $ 7,300 $ (1,923) $ (3,337) $ (287) |
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, 2023 are as follows (in thousands): Asset Category Total Level 1 Level 2 Cash, cash equivalents, money markets and other $ 2,642 $ 2,642 $ — Common stock 12,680 12,680 — Mutual funds - fixed income 8,836 8,836 — Mutual funds - equities 9,527 9,527 — Fixed income securities 33,728 — 33,728 Other 4,091 4,091 — Total $ 71,504 $ 37,776 $ 33,728 The fair values for the pension plan’s net assets, by asset category, at December 31, 2022 are as follows (in thousands): Asset Category Total Level 1 Level 2 Cash, cash equivalents, money markets and other $ 7,572 $ 7,572 $ — Common stock 17,974 17,974 — Mutual funds - fixed income 10,732 10,732 — Mutual funds - equities 5,228 5,228 — Fixed income securities 22,913 — 22,913 Other 7,133 7,133 — Total $ 71,552 $ 48,639 $ 22,913 |
Schedule of weighted-average asset allocations, by asset category | 2023 2022 Cash, cash equivalents, money markets and other 4 % 11 % Common stock 18 25 Mutual funds - fixed income 12 15 Mutual funds - equities 13 7 Fixed income securities 47 32 Other 6 10 Total 100 % 100 % |
Schedule of amounts recognized on the Company's consolidated balance sheets | Amounts recognized on the Company’s consolidated balance sheets consist of (in thousands): As of December 31, 2023 2022 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Accrued and current liabilities $ — $ 310 $ — $ 294 Other Liabilities 1,712 3,318 1,923 3,068 Other Assets 9,070 — 7,303 — Accumulated other comprehensive income, net of tax 8,592 1,415 6,191 1,589 |
Schedule of amounts recognized in accumulated other comprehensive income | As of December 31, 2023 2022 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Accrued and current liabilities $ — $ 310 $ — $ 294 Other Liabilities 1,712 3,318 1,923 3,068 Other Assets 9,070 — 7,303 — Accumulated other comprehensive income, net of tax 8,592 1,415 6,191 1,589 |
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, 2023, 2022 and 2021 (in thousands): 2023 2022 2021 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Pension benefits Postretirement benefits Operating expense Service cost $ 90 $ 65 $ 151 $ 124 $ 229 $ 143 Non-operating expense Interest cost 3,323 182 2,373 139 2,043 127 Expected return on plan assets (2,936) — (3,814) — (3,366) — Amortization of actuarial (gain) loss (43) (113) — — — — Settlement — — 1,725 — 34 — Net periodic pension cost $ 434 $ 134 $ 435 $ 263 $ (1,060) $ 270 |
Schedule of estimated benefits | The following estimated benefits, which reflect expected future service, as appropriate, are expected to be paid over the next 10 years as indicated below (in thousands): Pension Postretirement Fiscal Year Benefits Benefits 2024 $ 5,365 $ 317 2025 4,899 333 2026 4,969 238 2027 5,026 265 2028 4,775 265 2029-2033 23,351 1,483 Total $ 48,385 $ 2,901 |
Schedule of Multi-employer pension plan | Plan name Alaska Electrical Pension Plan Number of employees covered 541 Pension Protection Act zone status at the plan's year-end: December 31, 2022 Green December 31, 2021 Green Plan subject to funding improvement plan No Plan subject to rehabilitation plan No Employer subject to contribution surcharge No Company contributions to the plan for the year ended: December 31, 2023 $ 6.2 million December 31, 2022 $ 6.6 million December 31, 2021 $ 3.1 million Name and expiration date of collective bargaining agreements requiring contributions to the plan: Collective Bargaining Agreement Between Alaska Communications Systems and Local Union 1547 IBEW June 30, 2025 Outside Agreement Alaska Electrical Construction between Local Union 1547 IBEW and Alaska Chapter National Electrical Contractors Association Inc. June 30, 2026 Inside Agreement Alaska Electrical Construction between Local Union 1547 IBEW and Alaska Chapter National Electrical Contractors Association Inc. April 30, 2026 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of contractual commitments | 2024 $ 121,989 2025 74,457 2026 32,220 2027 19,005 2028 13,816 Thereafter 106,373 Total obligations $ 367,860 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT REPORTING | |
Schedule of information for each operating segment | The following tables provide information for each operating segment (in thousands): For the Year Ended December 31, 2023 International US Corporate and Telecom Telecom Other (1) Consolidated Revenue Communication Services Mobility - Business $ 16,333 $ 527 $ — $ 16,860 Mobility - Consumer 92,153 3,510 — 95,663 Total Mobility 108,486 4,037 — 112,523 Fixed - Business 71,215 143,322 — 214,537 Fixed - Consumer 167,953 90,283 — 258,236 Total Fixed 239,168 233,605 — 472,773 Carrier Services 14,686 128,195 — 142,881 Other 3,066 3,839 — 6,905 Total Communication Services Revenue 365,406 369,676 — 735,082 Construction — 10,629 — 10,629 Other Managed Services 5,327 11,178 — 16,505 Total Other Revenue 5,327 11,178 — 16,505 Total Revenue 370,733 391,483 — 762,216 Depreciation 57,420 81,594 2,613 141,627 Amortization of intangibles from acquisitions 1,253 11,383 — 12,636 Non-cash stock-based compensation 431 247 7,857 8,535 Operating income (loss) 53,420 (5,522) (34,723) 13,175 For the Year Ended December 31, 2022 International US Corporate and Telecom Telecom Other (1) Consolidated Revenue Communication Services Mobility - Business $ 14,830 $ 1,228 $ — $ 16,058 Mobility - Consumer 87,601 6,359 — 93,960 Total Mobility 102,431 7,587 — 110,018 Fixed - Business 69,903 126,735 — 196,638 Fixed - Consumer 163,408 78,338 — 241,746 Total Fixed 233,311 205,073 — 438,384 Carrier Services 13,459 128,864 — 142,323 Other 1,450 46 — 1,496 Total Communication Services Revenue 350,651 341,570 — 692,221 Construction — 15,762 — 15,762 Other Managed Services 4,930 12,832 — 17,762 Total other revenue 4,930 12,832 — 17,762 Total Revenue 355,581 370,164 — 725,745 Depreciation and amortization 56,568 75,020 3,549 135,137 Amortization of intangibles from acquisitions 1,572 11,444 — 13,016 Non-cash stock-based compensation 240 387 6,779 7,406 Operating income (loss) 52,011 (5,655) (38,414) 7,942 For the Year Ended December 31, 2021 International US Corporate and Telecom Telecom Other (1) Consolidated Revenue Communication Services Mobility - Business $ 6,983 $ 1,402 $ — $ 8,385 Mobility - Consumer 86,384 7,532 — 93,916 Total Mobility 93,367 8,934 — 102,301 Fixed - Business 67,458 53,283 — 120,741 Fixed - Consumer 166,005 41,897 — 207,902 Total Fixed 233,463 95,180 — 328,643 Carrier Services 9,937 107,793 — 117,730 Other 946 — — 946 Total Communication Services Revenue 337,713 211,907 — 549,620 Construction — 35,889 — 35,889 Other Renewable Energy — — 417 417 Managed Services 5,146 11,635 — 16,781 Total Other Revenue 5,146 11,635 417 17,198 Total Revenue 342,859 259,431 417 602,707 Depreciation 53,858 43,604 5,269 102,731 Amortization of intangibles from acquisitions 1,648 6,127 — 7,775 Non-cash stock-based compensation 128 271 6,182 6,581 Operating income (loss) 33,899 (14,016) (34,909) (15,026) (1) Corporate and other refers to corporate overhead expenses and consolidating adjustments. See Note 5 for a discussion of the Company’s disposition of its International Solar Business. |
Schedule of selected balance sheet data for each segment | International US Corporate and Telecom Telecom Other Consolidated December 31, 2023 Cash, cash equivalents, and restricted cash $ 26,354 $ 33,574 $ 2,239 $ 62,167 Total current assets 107,469 162,768 11,035 281,272 Fixed assets, net 481,911 593,833 4,915 1,080,659 Goodwill 4,836 35,268 — 40,104 Total assets 672,171 1,019,924 91,619 1,783,714 Total current liabilities 86,540 169,297 37,357 293,194 Total debt, including current portion 64,254 293,607 159,009 516,870 December 31, 2022 Cash, cash equivalents, and restricted cash $ 26,418 $ 26,375 $ 6,935 $ 59,728 Total current assets 105,324 116,038 8,326 229,688 Fixed assets, net 462,447 585,969 7,538 1,055,954 Goodwill 4,835 35,269 — 40,104 Total assets 643,664 980,543 83,662 1,707,869 Total current liabilities 86,738 119,755 26,687 233,180 Total debt, including current portion 59,659 263,241 99,000 421,900 |
Schedule of segment capital expenditures | Capital Expenditures International US Corporate and Year ended December 31, Telecom Telecom Other (1) Consolidated 2023 $ 76,379 $ 119,789 $ — $ 196,168 2022 70,385 96,589 1,045 168,019 (1) Corporate and other refers to corporate overhead expenses and consolidating adjustments. See Note 5 for a discussion of the Company’s disposition of its International Solar Business. |
Schedule of revenues and long lived assets by geographic location | The table below identifies the Company’s revenues and long-lived assets by geographic location. The Company attributes revenue to geographic location based on location of the customer (in thousands): 2023 2022 2021 Long-Lived Long-Lived Long-Lived Revenues Assets Revenues Assets Revenues Assets US $ 391,870 $ 938,650 $ 370,204 $ 927,177 $ 259,430 $ 840,251 Guyana 119,915 195,030 113,816 174,719 108,338 152,627 US Virgin Islands 95,129 213,553 93,264 209,101 94,310 210,448 Bermuda 114,096 102,227 110,337 100,125 104,671 107,885 Other Foreign Countries 41,206 52,982 38,124 67,058 35,958 64,775 $ 762,216 $ 1,502,442 $ 725,745 $ 1,478,180 $ 602,707 $ 1,375,986 |
ORGANIZATION AND BUSINESS OPE_3
ORGANIZATION AND BUSINESS OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
ORGANIZATION AND BUSINESS OPERATIONS | |
Number of operating segments | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Cash | ||
Deposit with non-insured institutions | $ 21.8 | |
Guyanese dollars | ||
Cash | ||
Cash (in GYD) | $ 5.7 | $ 4.9 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fixed Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fixed assets | ||
Accrued asset retirement obligations | $ 11.4 | $ 10.3 |
Minimum | ||
Fixed assets | ||
Useful life | 3 years | |
Maximum | ||
Fixed assets | ||
Useful life | 39 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Customer relationships | Minimum | |
Intangible assets | |
Intangible assets useful lives | 5 years |
Customer relationships | Maximum | |
Intangible assets | |
Intangible assets useful lives | 13 years |
Trade name licenses | Minimum | |
Intangible assets | |
Intangible assets useful lives | 6 years |
Trade name licenses | Maximum | |
Intangible assets | |
Intangible assets useful lives | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated other comprehensive income (loss) | |||
Beginning Balance | $ 580,813 | ||
Unrecognized actuarial gain, net of tax | 2,035 | $ 2,428 | $ 5,014 |
Pension settlement, net of tax | 195 | 915 | |
Reclassification of foreign currency (gains) losses on assets, net of tax expense of $0, $0.2 million, and $0 | 1,348 | (500) | |
Foreign currency translation adjustment | 229 | (1,385) | (689) |
Interest rate swap | (1,749) | (21) | 170 |
Ending Balance | 541,073 | 580,813 | |
Projected pension benefit obligation, tax expense (benefit) | 0 | (200) | (100) |
Reclassification of loss on pension settlement, net of tax | (200) | (800) | |
Reclassification of foreign currency losses, net of tax expense | 0 | 200 | 0 |
Unrealized gain on derivatives net of tax expense | 600 | 0 | 0 |
Other Comprehensive Income/(Loss) | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | 6,210 | 4,773 | 278 |
Unrecognized actuarial gain, net of tax | 2,035 | 2,428 | 5,014 |
Pension settlement, net of tax | 195 | 915 | |
Reclassification of foreign currency (gains) losses on assets, net of tax expense of $0, $0.2 million, and $0 | 1,348 | (500) | |
Foreign currency translation adjustment | 229 | (1,385) | (689) |
Interest rate swap | (1,749) | (21) | 170 |
Ending Balance | 8,268 | 6,210 | 4,773 |
Projected Pension and Postretirement Benefit Obligations | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | 7,787 | 4,444 | (570) |
Unrecognized actuarial gain, net of tax | 2,035 | 2,428 | 5,014 |
Pension settlement, net of tax | 195 | 915 | |
Ending Balance | 10,017 | 7,787 | 4,444 |
Translation Adjustment | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | (1,577) | 308 | 997 |
Reclassification of foreign currency (gains) losses on assets, net of tax expense of $0, $0.2 million, and $0 | 1,348 | (500) | |
Foreign currency translation adjustment | 229 | (1,385) | (689) |
Ending Balance | (1,577) | 308 | |
Other | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | 21 | (149) | |
Interest rate swap | (1,749) | $ (21) | 170 |
Ending Balance | $ (1,749) | $ 21 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - AOCI reclassifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI reclassifications | |||
Reclassification of foreign currency, net income | $ 1,348 | $ (500) | |
Projected Pension and Postretirement Benefit Obligations | |||
AOCI reclassifications | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | $ 200 | $ 900 | $ (34) |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Contract Acquisition Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Retail revenue period for billing postpaid customers in advance | 1 month |
Contract liability | $ 68.7 |
Expected amortization period, when the Company utilizes the practical expedient and expenses the costs as incurred | true |
Alaska communications | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Contract liabilities in its acquisitions | $ 92.7 |
Renewable Energy | Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Amortization period | 2 years |
Renewable Energy | Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Amortization period | 6 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restructuring expenses (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Employee termination benefits | $ 5,451 |
Contract termination costs | 5,777 |
Restructuring Charges, Total | 11,228 |
Restructuring paid | 5,700 |
Gain on lease termination | 300 |
Restructuring expenses accrued | 5,800 |
Right of use assets terminated | 5,600 |
Lease liabilities terminated | 5,900 |
US Telecom | |
Employee termination benefits | 1,960 |
Contract termination costs | 5,777 |
Restructuring Charges, Total | 7,737 |
International Telecom | |
Employee termination benefits | 3,491 |
Restructuring Charges, Total | $ 3,491 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Risk (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) customer | Dec. 31, 2022 customer | |
Replace and Remove Program | ||
Credit concentrations and significant customers | ||
Grants receivable | $ | $ 47.3 | |
Revenues. | Customer concentration | ||
Credit concentrations and significant customers | ||
Number of customers | 0 | 0 |
Accounts receivable | Customer concentration | ||
Credit concentrations and significant customers | ||
Number of customers | 0 | 0 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair value Instruments - Recurring (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Redeemable common units | ||
Fair value measurements | ||
Investment, Type [Extensible Enumeration] | Alaska communications | Alaska communications |
Warrant | ||
Fair value measurements | ||
Investment, Type [Extensible Enumeration] | Alaska communications | Alaska communications |
Recurring basis | ||
Fair value measurements | ||
Total assets and liabilities measured at fair value | $ (21,561) | $ (36,055) |
Recurring basis | Short Term Investments | ||
Fair value measurements | ||
Investments | 300 | 300 |
Recurring basis | Other investments | ||
Fair value measurements | ||
Investments | 1,197 | 1,616 |
Recurring basis | Employee Benefit Investments | ||
Fair value measurements | ||
Investments | 3,014 | |
Recurring basis | Redeemable common units | ||
Fair value measurements | ||
Derivative liabilities | (11,063) | (22,557) |
Recurring basis | Redeemable common units | Alloy Inc | ||
Fair value measurements | ||
Derivative liabilities | (14,760) | (14,760) |
Recurring basis | Warrant | ||
Fair value measurements | ||
Derivative liabilities | (249) | (654) |
Recurring basis | Level 1 | ||
Fair value measurements | ||
Total assets and liabilities measured at fair value | 3,314 | 300 |
Recurring basis | Level 1 | Short Term Investments | ||
Fair value measurements | ||
Investments | 300 | 300 |
Recurring basis | Level 1 | Employee Benefit Investments | ||
Fair value measurements | ||
Investments | 3,014 | |
Recurring basis | Level 3 | ||
Fair value measurements | ||
Total assets and liabilities measured at fair value | (24,875) | (36,355) |
Recurring basis | Level 3 | Other investments | ||
Fair value measurements | ||
Investments | 1,197 | 1,616 |
Recurring basis | Level 3 | Redeemable common units | ||
Fair value measurements | ||
Derivative liabilities | (11,063) | (22,557) |
Recurring basis | Level 3 | Redeemable common units | Alloy Inc | ||
Fair value measurements | ||
Derivative liabilities | (14,760) | (14,760) |
Recurring basis | Level 3 | Warrant | ||
Fair value measurements | ||
Derivative liabilities | $ (249) | $ (654) |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Roll forward of investments | ||
Beginning balance | $ 38,169 | $ 48,444 |
Sale of Investments(1) | (13,212) | |
Income (loss) recognized | 2,840 | (1,799) |
Contributions / (distributions) | 320 | 2,006 |
Foreign currency loss | 1,578 | (2,040) |
Gain recognized | 4,770 | |
Ending balance | 42,907 | 38,169 |
Investments without a readily determinable fair value | ||
Roll forward of investments | ||
Beginning balance | 22,590 | 17,820 |
Income (loss) recognized | 2,431 | |
Contributions / (distributions) | 425 | |
Transfers | 16,264 | |
Gain recognized | 4,770 | |
Ending balance | 41,710 | 22,590 |
Fair value investments | ||
Roll forward of investments | ||
Beginning balance | 1,616 | 1,925 |
Income (loss) recognized | 316 | 435 |
Contributions / (distributions) | (735) | (744) |
Ending balance | 1,197 | 1,616 |
Equity investments | ||
Roll forward of investments | ||
Beginning balance | 13,963 | 28,699 |
Sale of Investments(1) | (13,212) | |
Income (loss) recognized | 93 | (2,234) |
Contributions / (distributions) | 630 | 2,750 |
Foreign currency loss | 1,578 | (2,040) |
Transfers | $ (16,264) | |
Ending balance | $ 13,963 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Investments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair value measurements | ||
Sale of a portion of the business | $ 15,700 | |
Equity method investments without a readily determinable fair value transferred to the cost method | $ 16,300 | |
Investment book value | 13,200 | |
Equity method investment, realized gain (loss) | 2,500 | |
Reclassification of foreign currency (gains) losses on assets, net of tax expense of $0, $0.2 million, and $0 | 1,348 | $ (500) |
Equity investments | ||
Fair value measurements | ||
Income recorded from equity method investments | $ 100 |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Fair value Instruments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Fair value measurements | ||
Long-term debt | $ 562.9 | $ 467.2 |
Level 2 | Total | ||
Fair value measurements | ||
Long-term debt | $ 571.6 | $ 473.7 |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Computation of basic and diluted earnings per share (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net loss attributable to ATN International, Inc. stockholders- Basic | $ (14,538) | $ (5,645) | $ (22,108) |
Less: Preferred dividends | (4,942) | (4,856) | (1,962) |
Net Loss attributable to ATN International, Inc. common stockholders- Diluted | $ (19,480) | $ (10,501) | $ (24,070) |
Denominator: | |||
Weighted-average shares outstanding- Basic | 15,595 | 15,751 | 15,867 |
Weighted-average shares outstanding- Diluted | 15,595 | 15,751 | 15,867 |
SUMMARY OF SIGNIFICANT ACCOU_17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Redeemable Noncontrolling Interests - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 22, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation from basic to diluted weighted average common shares outstanding | ||||
Redeemable units | $ 85,917 | $ 92,469 | $ 72,936 | |
Warrants value | 300 | 700 | ||
Redeemable common units | ||||
Reconciliation from basic to diluted weighted average common shares outstanding | ||||
Redeemable units | 25,823 | 37,317 | 22,640 | |
Fair value of common units | 11,100 | 22,500 | ||
Allocated losses | 11,000 | 4,300 | ||
(Decrease) increase in book value | (500) | 4,200 | ||
Redeemable preferred units | ||||
Reconciliation from basic to diluted weighted average common shares outstanding | ||||
Redeemable units | $ 60,094 | 55,152 | $ 50,296 | |
Percentage of preferred dividend | 9% | |||
Unpaid dividend | $ 11,800 | 6,800 | ||
Alaska communications | ||||
Reconciliation from basic to diluted weighted average common shares outstanding | ||||
Percentage of additional equity interest | 3% | |||
Alaska communications | Redeemable common units | ||||
Reconciliation from basic to diluted weighted average common shares outstanding | ||||
Redeemable units | $ 22,600 | |||
Alaska communications | Redeemable preferred units | ||||
Reconciliation from basic to diluted weighted average common shares outstanding | ||||
Redeemable units | $ 48,300 | |||
Percentage of preferred dividend | 9% | |||
Sacred Wind Enterprises | Redeemable common units | ||||
Reconciliation from basic to diluted weighted average common shares outstanding | ||||
Redeemable units | 14,800 | |||
Fair value of common units | $ 14,800 | $ 14,800 |
SUMMARY OF SIGNIFICANT ACCOU_18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Redeemable Noncontrolling Interests - Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Increase (decrease) in temporary equity | ||
Beginning balance | $ 92,469 | $ 72,936 |
Issuance of 591 common units | 14,760 | |
Accrued preferred dividend | 4,942 | 4,856 |
Allocated net loss | (10,972) | (4,317) |
Change in fair value | (522) | 4,234 |
Ending balance | 85,917 | 92,469 |
Redeemable common units | ||
Increase (decrease) in temporary equity | ||
Beginning balance | 37,317 | 22,640 |
Issuance of 591 common units | 14,760 | |
Allocated net loss | (10,972) | (4,317) |
Change in fair value | (522) | 4,234 |
Ending balance | 25,823 | $ 37,317 |
Issuance of redeemable units (in shares) | 591 | |
Redeemable preferred units | ||
Increase (decrease) in temporary equity | ||
Beginning balance | 55,152 | $ 50,296 |
Accrued preferred dividend | 4,942 | 4,856 |
Ending balance | $ 60,094 | $ 55,152 |
REVENUE AND RECEIVABLES - Timin
REVENUE AND RECEIVABLES - Timing of Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 709,880 | $ 677,953 | $ 565,541 |
Services transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 674,735 | 633,816 | 508,180 |
Goods and services transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 35,145 | 44,137 | 57,361 |
US Telecom | Services transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 326,966 | 301,309 | 188,405 |
US Telecom | Goods and services transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 18,059 | 29,203 | 46,433 |
International Telecom | Services transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 347,769 | 332,507 | 319,357 |
International Telecom | Goods and services transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 17,086 | $ 14,934 | 10,928 |
Solar | Services transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 418 |
REVENUE AND RECEIVABLES - Contr
REVENUE AND RECEIVABLES - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contract Assets and Liabilities | |||
Contract Asset - current | $ 3,616 | $ 2,932 | |
Change in contract asset - current | $ 684 | ||
% of change in contract asset - current | 23.30% | ||
Contract Asset - noncurrent | $ 5,509 | 3,775 | |
Change in contract asset - noncurrent | $ 1,734 | ||
% of change in contract asset - noncurrent | 45.90% | ||
Contract liability- current | $ (30,990) | (27,284) | |
Change in contract liabilities - current | $ (3,706) | ||
% of change in contract liabilities - current | 13.60% | ||
Contract liability- noncurrent | $ (64,035) | (72,543) | |
Change in contract liabilities - noncurrent | $ 8,508 | ||
% of change in contract liabilities - Noncurrent | (11.70%) | ||
Net contract liability | $ (85,900) | (93,120) | |
Change in net contract liability | $ 7,220 | ||
% of change in net contract liability | (7.80%) | ||
Revenue recognized related to contract liability | $ 27,600 | 25,100 | |
Amortization of contract assets | $ 3,000 | 3,600 | |
Revenue recognized in the period related to performance obligations that were satisfied or partially satisfied in previous periods | $ 0 | $ 0 |
REVENUE AND RECEIVABLES - Con_2
REVENUE AND RECEIVABLES - Contract Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contract Acquisition Costs | |||
Amortization of contract acquisition cost | $ 5.6 | $ 3.5 | $ 2.8 |
Prepayments and other current assets | |||
Contract Acquisition Costs | |||
Short-term contract acquisition costs | $ 11.3 | $ 8.3 |
REVENUE AND RECEIVABLES - Remai
REVENUE AND RECEIVABLES - Remaining Performance Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 312 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 494 | |
Percentage of performance obligations to be satisfied | 35% | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 24 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 53 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 50 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 50 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 50 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 50 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2031-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 50 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 12 months |
REVENUE AND RECEIVABLES - Accou
REVENUE AND RECEIVABLES - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts Receivable | ||
Gross accounts receivable | $ 207,900 | $ 154,500 |
Customer receivable, current | 7,249 | 5,803 |
Customer receivable - long term | 45,676 | 46,706 |
Allowance for credit loss | 16,400 | 15,200 |
Receivable for government funded programs | 49,300 | 5,700 |
FirstNet agreement | ||
Accounts Receivable | ||
Customer receivable | 52,900 | 52,500 |
Customer receivable, current | 7,200 | 5,800 |
Customer receivable - long term | $ 45,700 | $ 46,700 |
REVENUE AND RECEIVABLES - Allow
REVENUE AND RECEIVABLES - Allowance for Credit Losses Rollforward - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUE AND RECEIVABLES | |||
Beginning Balance | $ 15,171 | $ 13,885 | |
Current period provision for expected losses | 5,012 | 6,693 | $ 4,850 |
Write-offs charged against the allowance | (4,340) | (5,518) | |
Recoveries collected | 519 | 109 | |
Ending Balance | $ 16,362 | $ 15,171 | $ 13,885 |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense and Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
LEASES | |||
Operating lease cost | $ 23,232 | $ 24,531 | $ 20,386 |
Short-term lease cost | 2,866 | 2,575 | 2,402 |
Variable lease cost | 4,896 | 3,186 | 3,874 |
Total operating lease cost | 30,994 | 30,292 | 26,662 |
Lease liabilities arising from ROU | 16,700 | 7,100 | |
Finance lease cost: | |||
Amortization of right-of-use asset | 2,930 | 3,060 | 2,561 |
Variable costs | 814 | 838 | 792 |
Interest costs | 372 | 381 | |
Total finance lease cost | 4,116 | 4,279 | 3,353 |
Payments for lease liabilities | 19,800 | 22,600 | |
Gain on lease termination | 300 | ||
Finance leases cost included in property, plant and equipment | 31,700 | 26,600 | |
Accumulated amortization related to finance leases | 16,400 | 13,500 | |
Operating lease right-of-use assets | 1,000 | 60,400 | |
Lease liabilities | 1,000 | $ 46,700 | |
Principal payments, finance lease liabilities | 1,375 | 1,069 | |
Payments for finance leases | 4,800 | ||
Investing cash flows for finance lease liabilities | 3,400 | ||
Finance lease, disposed | 2,300 | ||
Loss on sale of finance lease | 1,000 | ||
Finance lease liability | 5,641 | 5,459 | |
Finance lease liability, current | $ 1,800 | 1,100 | |
Additional finance lease liability | $ 400 |
LEASES - Weighted average remai
LEASES - Weighted average remaining lease terms and discount rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
LEASES | ||
Operating leases, weighted average remaining lease term | 13 years 3 months 18 days | 12 years 4 months 24 days |
Financing leases, weighted average remaining lease term | 9 years 2 months 12 days | 9 years 3 months 18 days |
Operating leases, weighted average discount rate | 6.30% | 6% |
Financing leases, weighted average discount rate | 6.60% | 6.70% |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessor, Lease, Description [Line Items] | |||
Year 1 | $ 18,048 | $ 19,417 | |
Year 2 | 16,022 | 17,836 | |
Year 3 | 11,755 | 14,805 | |
Year 4 | 9,327 | 10,505 | |
Year 5 | 7,807 | 8,096 | |
Thereafter | 80,637 | 76,452 | |
Total lease payments | 143,596 | 147,111 | |
Less imputed interest | (57,133) | (53,794) | |
Total | $ 86,463 | $ 93,317 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Lease Liability, Current, Lease Liability, Noncurrent | Lease Liability, Current, Lease Liability, Noncurrent | |
Finance lease liability | |||
Year 1 | $ 2,030 | $ 1,403 | |
Year 2 | 1,488 | 1,342 | |
Year 3 | 601 | 978 | |
Year 4 | 534 | 504 | |
Year 5 | 505 | 495 | |
Thereafter | 2,145 | 2,651 | |
Total lease payments | 7,303 | 7,373 | |
Less imputed interest | (1,662) | (1,914) | |
Total | $ 5,641 | $ 5,459 | |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Lease Liability, Current, Lease Liability, Noncurrent | Lease Liability, Current, Lease Liability, Noncurrent | |
Finance Lease, Principal Payments | $ 1,375 | $ 1,069 | |
Maturities of future undiscounted lease payments | |||
2024 | 7,039 | ||
2025 | 6,760 | ||
2026 | 6,398 | ||
2027 | 5,212 | ||
2028 | 4,865 | ||
Thereafter | 12,510 | ||
Total future lease payments | 42,784 | ||
International Telecom | |||
Finance lease liability | |||
Total lease payments | 14,400 | ||
Finance Lease, Principal Payments | 10,200 | ||
Network asset | |||
Finance lease liability | |||
Lease income | $ 7,800 | $ 6,300 | $ 4,500 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues | Revenues |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - Acquisition of Sacred Wind Enterprises (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 07, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Cash transferred, net of cash acquired and other | $ (1,314) | $ 18,044 | $ 340,152 | |
Revenue | 762,216 | 725,745 | 602,707 | |
Pre-tax income (loss) | 27,539 | 8,056 | 22,687 | |
Transaction-related charges | $ 551 | 4,798 | $ 10,221 | |
Minimum | ||||
Business Acquisition [Line Items] | ||||
Useful life | 3 years | |||
Minimum | Trade name licenses | ||||
Business Acquisition [Line Items] | ||||
Intangible assets useful lives | 6 years | |||
Maximum | ||||
Business Acquisition [Line Items] | ||||
Useful life | 39 years | |||
Maximum | Trade name licenses | ||||
Business Acquisition [Line Items] | ||||
Intangible assets useful lives | 15 years | |||
Sacred Wind Enterprises | ||||
Business Acquisition [Line Items] | ||||
Consideration Transferred | $ 44,560 | |||
Cash transferred, net of cash acquired and other | 16,700 | |||
Cash acquired from acquisition | 9,400 | |||
Redeemable non-controlling interest | 14,800 | |||
Contingent consideration | $ 3,700 | |||
Working capital adjustments received | $ 1,300 | |||
Business combination equity interest | 6% | |||
Earn-out consideration | 7,900 | |||
Deferred revenue from long term customer contracts | $ 6,500 | |||
Revenue | 3,300 | |||
Pre-tax income (loss) | 200 | |||
Transaction-related charges | $ 800 | |||
Change in amount of contingent consideration | $ 4,200 | |||
Assumed debt | 31,639 | |||
Sacred Wind Enterprises | Trade name licenses | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 600 | |||
Intangible assets useful lives | 5 years | |||
Sacred Wind Enterprises | Minimum | Telecommunication Equipment | ||||
Business Acquisition [Line Items] | ||||
Discounted rate used for cash flows (as a percent) | 7% | |||
Useful life | 1 year | |||
Sacred Wind Enterprises | Maximum | Telecommunication Equipment | ||||
Business Acquisition [Line Items] | ||||
Discounted rate used for cash flows (as a percent) | 12% | |||
Useful life | 25 years |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - Preliminary allocation (Details) - USD ($) $ in Thousands | Nov. 07, 2022 | Jul. 22, 2021 | Dec. 31, 2022 | Dec. 31, 2021 |
Purchase price allocation: | ||||
Operating lease right-of-use assets | $ 1,000 | $ 60,400 | ||
Lease liabilities | $ (1,000) | $ (46,700) | ||
Sacred Wind Enterprises | ||||
Business Acquisition [Line Items] | ||||
Consideration Transferred | $ 44,560 | |||
Purchase price allocation: | ||||
Cash and cash equivalents | 2,619 | |||
Restricted cash | 6,747 | |||
Current assets | 4,888 | |||
Operating lease right-of-use assets | 989 | |||
Fixed assets | 85,255 | |||
Intangible assets | 1,232 | |||
Current liabilities | (10,176) | |||
Lease liabilities | (967) | |||
Deferred taxes | (14,388) | |||
Debt | (31,639) | |||
Net assets acquired | $ 44,560 | |||
Alaska communications | ||||
Business Acquisition [Line Items] | ||||
Consideration Transferred | $ 353,280 | |||
Noncontrolling interests | 470 | |||
Total value to allocate | 353,750 | |||
Purchase price allocation: | ||||
Cash and cash equivalents | 10,553 | |||
Restricted cash | 1,326 | |||
Short-term investments | 434 | |||
Accounts receivable | 30,453 | |||
Inventory, materials and supplies | 1,374 | |||
Prepayments and other current assets | 8,038 | |||
Operating lease right-of-use assets | 60,402 | |||
Fixed assets | 408,694 | |||
Telecommunication licenses | 683 | |||
Intangible assets | 44,333 | |||
Other assets | 2,387 | |||
Accounts payable and accrued liabilities | (39,188) | |||
Accrued taxes | (3,766) | |||
Advance payments and deposits | (15,842) | |||
Current portion of lease liabilities | (2,425) | |||
Deferred taxes | (17,040) | |||
Lease liabilities, excluding current portion | (44,234) | |||
Other liabilities | (92,432) | |||
Net assets acquired | $ 353,750 |
ACQUISITIONS AND DISPOSITIONS_3
ACQUISITIONS AND DISPOSITIONS - Acquisition of Alaska Communications (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jul. 22, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Redeemable units | $ 85,917 | $ 92,469 | $ 72,936 | ||
Amount drawn from revolving credit facility | 7,300 | 15,425 | 37,321 | ||
Revenue | 762,216 | 725,745 | 602,707 | ||
Pre-tax income (loss) | 27,539 | 8,056 | 22,687 | ||
Transaction-related charges | $ 551 | 4,798 | 10,221 | ||
Minimum | |||||
Business Acquisition [Line Items] | |||||
Useful life | 3 years | ||||
Maximum | |||||
Business Acquisition [Line Items] | |||||
Useful life | 39 years | ||||
Customer relationships | Minimum | |||||
Business Acquisition [Line Items] | |||||
Intangible assets useful lives | 5 years | ||||
Customer relationships | Maximum | |||||
Business Acquisition [Line Items] | |||||
Intangible assets useful lives | 13 years | ||||
Trade name licenses | Minimum | |||||
Business Acquisition [Line Items] | |||||
Intangible assets useful lives | 6 years | ||||
Trade name licenses | Maximum | |||||
Business Acquisition [Line Items] | |||||
Intangible assets useful lives | 15 years | ||||
Redeemable common units | |||||
Business Acquisition [Line Items] | |||||
Redeemable units | $ 25,823 | 37,317 | 22,640 | ||
Fair value of units | 11,100 | 22,500 | |||
Redeemable preferred units | |||||
Business Acquisition [Line Items] | |||||
Redeemable units | $ 60,094 | $ 55,152 | 50,296 | ||
Percentage of preferred dividend | 9% | ||||
Alaska communications | |||||
Business Acquisition [Line Items] | |||||
Price of common share | $ 3.40 | ||||
Consideration Transferred | $ 353,280 | ||||
Cash consideration | 339,500 | ||||
Cash acquired from acquisition | $ 11,900 | ||||
Percentage of additional equity interest | 3% | ||||
Accrued consideration | $ 1,900 | ||||
Payment for purchase of Alaska Communications equity | 186,800 | ||||
Repayment of Alaska Communications debt | 164,600 | ||||
Mezzanine equity contribution received from Freedom 3 Investors | $ 71,500 | ||||
Percentage of voting interest | 52% | ||||
Deferred revenue from long term customer contracts | $ 81,500 | ||||
Revenue | 110,500 | ||||
Pre-tax income (loss) | 4,700 | ||||
Transaction-related charges | 10,500 | $ 9,600 | $ 900 | ||
Alaska communications | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 34,900 | ||||
Alaska communications | Trade name licenses | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 9,500 | ||||
Alaska communications | Trade name licenses | Minimum | |||||
Business Acquisition [Line Items] | |||||
Intangible assets useful lives | 5 years | ||||
Alaska communications | Trade name licenses | Maximum | |||||
Business Acquisition [Line Items] | |||||
Intangible assets useful lives | 15 years | ||||
Alaska communications | Telecommunication Equipment | Minimum | |||||
Business Acquisition [Line Items] | |||||
Useful life | 2 years | ||||
Alaska communications | Telecommunication Equipment | Maximum | |||||
Business Acquisition [Line Items] | |||||
Useful life | 30 years | ||||
Alaska communications | Valuation income and cost approach | Telecommunication Equipment | Minimum | |||||
Business Acquisition [Line Items] | |||||
Discounted rate used for cash flows (as a percent) | 4% | ||||
Alaska communications | Valuation income and cost approach | Telecommunication Equipment | Maximum | |||||
Business Acquisition [Line Items] | |||||
Discounted rate used for cash flows (as a percent) | 14% | ||||
Alaska communications | Redeemable common units | |||||
Business Acquisition [Line Items] | |||||
Redeemable units | $ 22,600 | ||||
Alaska communications | Redeemable preferred units | |||||
Business Acquisition [Line Items] | |||||
Redeemable units | $ 48,300 | ||||
Percentage of preferred dividend | 9% | ||||
Alaska credit facility | Alaska communications | |||||
Business Acquisition [Line Items] | |||||
Face amount of debt | $ 283,000 | ||||
Debt issuance and debt discount costs | 6,600 | ||||
Alaska revolving facility | Alaska communications | |||||
Business Acquisition [Line Items] | |||||
Face amount of debt | 10,000 | ||||
Amount drawn from revolving credit facility | 63,000 | ||||
Alaska Term Facility | Alaska communications | |||||
Business Acquisition [Line Items] | |||||
Face amount of debt | $ 210,000 |
ACQUISITIONS AND DISPOSITIONS_4
ACQUISITIONS AND DISPOSITIONS - Unaudited pro forma operating results (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
ACQUISITIONS AND DISPOSITIONS | |||
Amount of pre-Close debt, and associated interest removed from pro forma results | $ 164,600 | ||
Transaction debt included in pro forma results | 283,000 | ||
Revenue | $ 762,216 | $ 725,745 | 602,707 |
Net loss attributable to ATN International, Inc. Stockholders | $ (14,538) | $ (5,645) | $ (22,108) |
Net income (loss) per weighted average basic share attributable to ATN International, Inc. stockholders | |||
Basic (in dollars per share) | $ (1.25) | $ (0.67) | $ (1.52) |
Diluted (in dollars per share) | $ (1.25) | $ (0.67) | $ (1.52) |
Pro Forma | |||
Revenue | $ 738,472 | ||
Net loss attributable to ATN International, Inc. Stockholders | $ (20,022) | ||
Earnings Per Share | |||
Basic (in dollars per share) | $ (1.26) | ||
Diluted (in dollars per share) | $ (1.26) | ||
Unaudited pro forma adjustments increased net loss | $ 2,100 |
ACQUISITIONS AND DISPOSITIONS_5
ACQUISITIONS AND DISPOSITIONS - Disposition - Vibrant Energy (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | 24 Months Ended | |||
Jan. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Assets and liabilities disposed | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | |||||
Vibrant | ||||||
Disposition | ||||||
Equity Method Investments | $ 11,800 | |||||
Vibrant | Disposal group, disposed of by sale, not discontinued operations | ||||||
Disposition | ||||||
Percentage of equity interest sold | 67% | |||||
Consideration received | $ 35,218 | |||||
Assets and liabilities disposed | ||||||
Current assets | 4,899 | |||||
Property, plant and equipment | 45,891 | |||||
Other assets | 439 | |||||
Current liabilities | (759) | |||||
Net assets disposed | 50,470 | |||||
Consideration less net assets disposed | (15,252) | |||||
Foreign currency losses reclassified from accumulated other comprehensive income | (6,258) | |||||
(Loss) gain on sale | (21,510) | $ 2,600 | $ (700) | $ (1,600) | $ (21,500) | |
Transaction costs | (1,283) | $ (600) | $ (700) | $ (1,300) | ||
Loss on sale including transaction costs | (22,793) | |||||
Cash | 19,500 | |||||
Accounts receivable | $ 3,900 | |||||
Amount received previously held in escrow | $ 1,800 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fixed Assets | |||
Total plant in service | $ 1,899,463 | $ 1,841,295 | |
Total property, plant, and equipment | 2,092,278 | 1,977,978 | |
Less: Accumulated depreciation | (1,011,619) | (922,024) | |
Net fixed assets | 1,080,659 | 1,055,954 | |
Depreciation and amortization | 141,600 | 135,100 | $ 102,700 |
Capital expenditure grants | 31,900 | 2,900 | |
Capitalized implementation costs | 8,100 | 5,600 | |
Amortization of implementation costs | $ 2,200 | 1,900 | |
Minimum | |||
Fixed Assets | |||
Useful Life | 3 years | ||
Maximum | |||
Fixed Assets | |||
Useful Life | 39 years | ||
Telecommunications equipment and towers | |||
Fixed Assets | |||
Total plant in service | $ 1,539,533 | 1,479,633 | |
Capital leased assets, cost | 36,100 | 26,600 | |
Capital leased assets, net | $ 8,700 | $ 13,700 | |
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 | |
Office and computer equipment | |||
Fixed Assets | |||
Total plant in service | $ 148,693 | $ 151,804 | |
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 | $ 138,243 | $ 136,145 | |
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 | $ 27,480 | $ 27,879 | |
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 | $ 22,424 | $ 22,934 | |
Land | |||
Fixed Assets | |||
Total plant in service | 11,652 | 11,308 | |
Furniture and fixtures | |||
Fixed Assets | |||
Total plant in service | $ 11,438 | $ 11,592 | |
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 | $ 192,815 | $ 136,683 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 01, 2023 | |
Goodwill | ||||
Goodwill | $ 40,104 | $ 40,104 | ||
Goodwill impairment | 0 | 0 | $ 20,587 | |
US Telecom | ||||
Goodwill | ||||
Goodwill | 35,268 | 35,268 | $ 35,300 | |
Amount by which fair value exceeded its carrying value | 16% | |||
International Telecom | ||||
Goodwill | ||||
Goodwill | $ 4,836 | $ 4,836 | ||
Goodwill impairment | $ 20,600 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Oct. 01, 2023 | Dec. 31, 2022 |
Changes in the carrying amount of goodwill, by operating segment | |||
Goodwill, Gross | $ 60,691 | $ 60,691 | |
Accumulated impairment | (20,587) | (20,587) | |
Goodwill, Total | 40,104 | 40,104 | |
International Telecom | |||
Changes in the carrying amount of goodwill, by operating segment | |||
Goodwill, Gross | 25,423 | 25,423 | |
Accumulated impairment | (20,587) | (20,587) | |
Goodwill, Total | 4,836 | 4,836 | |
US Telecom | |||
Changes in the carrying amount of goodwill, by operating segment | |||
Goodwill, Gross | 35,268 | 35,268 | |
Goodwill, Total | $ 35,268 | $ 35,300 | $ 35,268 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Change In Carrying Amount Of Telecommunications Licenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the beginning of the period | $ 113,698 | ||
Balance at the end of the period | $ 113,319 | $ 113,698 | |
US Telecom | |||
Telecommunications licenses | |||
Weighted Average Cost Of Capital Rate | 11.50% | ||
Telecommunications Licenses | |||
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the beginning of the period | $ 113,698 | 113,766 | |
Acquired licenses | 1,068 | ||
Dispositions | (379) | (1,136) | |
Balance at the end of the period | 113,319 | 113,698 | $ 113,766 |
Gain of license dispositions | 300 | 0 | |
Telecommunications Licenses | International Telecom | |||
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the beginning of the period | 34,798 | 34,798 | |
Balance at the end of the period | 34,798 | 34,798 | 34,798 |
Telecommunications Licenses | US Telecom | |||
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the beginning of the period | 78,900 | 78,968 | |
Acquired licenses | 1,068 | ||
Dispositions | (379) | (1,136) | |
Balance at the end of the period | $ 78,521 | $ 78,900 | $ 78,968 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Customer Relationships (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-lived intangible assets | |||
Amortization of intangibles | $ 12,636 | $ 13,016 | $ 7,775 |
Future Amortization | |||
Total | 19,585 | 31,992 | |
Customer relationships | International Telecom | |||
Finite-lived intangible assets | |||
Amortization of intangibles | 11,100 | 11,600 | 7,000 |
Future Amortization | |||
2024 | 576 | ||
2025 | 576 | ||
2026 | 576 | ||
2027 | 576 | ||
2028 | 275 | ||
Thereafter | 62 | ||
Total | 2,641 | ||
Customer relationships | US Telecom | |||
Future Amortization | |||
2024 | 5,748 | ||
2025 | 2,779 | ||
Total | 8,527 | ||
Trade name licenses | |||
Finite-lived intangible assets | |||
Other intangible assets | 8,400 | 9,700 | |
Amortization of intangibles | 1,300 | $ 1,300 | $ 800 |
Trade name licenses | International Telecom | |||
Future Amortization | |||
2024 | 307 | ||
2025 | 307 | ||
2026 | 209 | ||
2027 | 37 | ||
Total | 860 | ||
Trade name licenses | US Telecom | |||
Future Amortization | |||
2024 | 964 | ||
2025 | 879 | ||
2026 | 769 | ||
2027 | 718 | ||
2028 | 657 | ||
Thereafter | 3,570 | ||
Total | $ 7,557 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||||
Jul. 13, 2023 USD ($) | Dec. 23, 2022 USD ($) | Dec. 22, 2022 | Jun. 15, 2022 USD ($) | Jul. 22, 2021 USD ($) | Apr. 10, 2019 USD ($) | Oct. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 30, 2023 USD ($) derivative | Nov. 07, 2022 USD ($) | Oct. 12, 2022 USD ($) | May 05, 2022 | Mar. 26, 2020 USD ($) | Dec. 31, 2016 USD ($) | Jul. 01, 2016 USD ($) | |
Long-term debt | |||||||||||||||||
Outstanding borrowings | $ 516,870 | $ 421,900 | |||||||||||||||
Current portion of long-term debt | 24,290 | 6,173 | |||||||||||||||
Long-term debt, excluding current portion | 492,580 | 415,727 | |||||||||||||||
Current portion of customer receivable credit facility | 7,110 | 6,073 | |||||||||||||||
Revolving credit facility - borrowings | $ 159,414 | $ 115,250 | $ 97,000 | ||||||||||||||
Alaska credit facility | SOFR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 0.10% | ||||||||||||||||
One Communications Debt | Minimum | LIBOR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 2.50% | ||||||||||||||||
One Communications Debt | Maximum | LIBOR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 2.75% | ||||||||||||||||
GTT Credit Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Term of debt | 5 years | ||||||||||||||||
Fixed interest rate | 7.50% | ||||||||||||||||
GTT Term Loan Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Maximum borrowing capacity | $ 2,900 | ||||||||||||||||
Borrowings outstanding | $ 0 | ||||||||||||||||
GTT Overdraft Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Maximum borrowing capacity | $ 5,700 | ||||||||||||||||
Borrowings outstanding | 4,500 | ||||||||||||||||
Viya Debt | |||||||||||||||||
Long-term debt | |||||||||||||||||
Term loan assumed | $ 60,000 | ||||||||||||||||
Net leverage ratio | 7 | 3.5 | |||||||||||||||
Fixed interest rate | 4% | 4% | |||||||||||||||
Financing costs | $ 900 | ||||||||||||||||
Outstanding debt | 60,000 | ||||||||||||||||
Unamortized financing costs | 200 | ||||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Maximum borrowing capacity | $ 200,000 | ||||||||||||||||
Repayments of debt | $ 139,500 | ||||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | Minimum | |||||||||||||||||
Long-term debt | |||||||||||||||||
Commitment fee (as a percent) | 0.15% | ||||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | Minimum | LIBOR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 1.25% | ||||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | Minimum | Base rate | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 0.25% | ||||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | Maximum | |||||||||||||||||
Long-term debt | |||||||||||||||||
Commitment fee (as a percent) | 0.375% | ||||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | Maximum | LIBOR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 2.25% | ||||||||||||||||
Revolver loan | 2019 CoBank Credit Facility | Maximum | Base rate | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 1.25% | ||||||||||||||||
Letter of credit sub-facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Borrowings outstanding | 31,600 | ||||||||||||||||
Letter of credit sub-facility | 2019 CoBank Credit Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Maximum borrowing capacity | $ 75,000 | ||||||||||||||||
Letter of credit sub-facility | 2023 CoBank Credit Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Maximum borrowing capacity | 25,000 | ||||||||||||||||
Swingline sub-facility | 2019 CoBank Credit Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Maximum borrowing capacity | $ 10,000 | ||||||||||||||||
Base rate before one-week or one-month LIBOR (as a percent) | 1% | ||||||||||||||||
Swingline sub-facility | 2019 CoBank Credit Facility | Federal Funds Effective Rate | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||||||||||
Swingline sub-facility | 2023 CoBank Credit Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Maximum borrowing capacity | $ 20,000 | ||||||||||||||||
Base rate before one-week or one-month LIBOR (as a percent) | 1% | ||||||||||||||||
Swingline sub-facility | 2023 CoBank Credit Facility | Federal Funds Effective Rate | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||||||||||
2023 CoBank Credit Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Financing costs | 4,200 | ||||||||||||||||
Unamortized financing costs | 3,800 | ||||||||||||||||
2023 CoBank Credit Facility | 2023 CoBank Credit Facility | Minimum | |||||||||||||||||
Long-term debt | |||||||||||||||||
Commitment fee (as a percent) | 0.25% | ||||||||||||||||
2023 CoBank Credit Facility | 2023 CoBank Credit Facility | Maximum | |||||||||||||||||
Long-term debt | |||||||||||||||||
Commitment fee (as a percent) | 0.50% | ||||||||||||||||
2023 CoBank Revolving Loan | 2023 CoBank Credit Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Maximum borrowing capacity | $ 170,000 | ||||||||||||||||
Remaining borrowing capacity | 136,400 | ||||||||||||||||
Borrowings outstanding | 33,600 | ||||||||||||||||
Term of debt | 5 years | ||||||||||||||||
Revolving credit facility - borrowings | $ 13,600 | ||||||||||||||||
2023 CoBank Revolving Loan | 2023 CoBank Credit Facility | Minimum | SOFR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 1.75% | ||||||||||||||||
2023 CoBank Revolving Loan | 2023 CoBank Credit Facility | Minimum | Base rate | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 0.75% | ||||||||||||||||
2023 CoBank Revolving Loan | 2023 CoBank Credit Facility | Maximum | |||||||||||||||||
Long-term debt | |||||||||||||||||
Net leverage ratio | 3.25 | ||||||||||||||||
2023 CoBank Revolving Loan | 2023 CoBank Credit Facility | Maximum | SOFR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 3.50% | ||||||||||||||||
2023 CoBank Revolving Loan | 2023 CoBank Credit Facility | Maximum | Base rate | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 2.50% | ||||||||||||||||
2023 CoBank Term Loan | 2023 CoBank Credit Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Face amount of debt | $ 130,000 | ||||||||||||||||
Borrowings outstanding | 129,200 | ||||||||||||||||
Term of debt | 6 years | ||||||||||||||||
2023 CoBank Term Loan | 2023 CoBank Credit Facility | Minimum | SOFR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 2% | ||||||||||||||||
2023 CoBank Term Loan | 2023 CoBank Credit Facility | Minimum | Base rate | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 1% | ||||||||||||||||
2023 CoBank Term Loan | 2023 CoBank Credit Facility | Maximum | SOFR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 3.75% | ||||||||||||||||
2023 CoBank Term Loan | 2023 CoBank Credit Facility | Maximum | Base rate | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 2.75% | ||||||||||||||||
Senior secured delayed draw term loan | Receivable credit facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Maximum borrowing capacity | $ 75,000 | ||||||||||||||||
Remaining borrowing capacity | 15,000 | ||||||||||||||||
Current portion of customer receivable credit facility | 7,100 | ||||||||||||||||
Borrowings outstanding | 46,500 | ||||||||||||||||
Financing costs | $ 800 | ||||||||||||||||
Unamortized financing costs | 500 | ||||||||||||||||
Senior secured delayed draw term loan | Sacred Wind Term Debt | |||||||||||||||||
Long-term debt | |||||||||||||||||
Outstanding borrowings | 28,200 | $ 31,600 | |||||||||||||||
Current portion of long-term debt | 3,400 | ||||||||||||||||
Long-term debt, excluding current portion | $ 24,800 | ||||||||||||||||
Senior secured delayed draw term loan | Sacred Wind Term Debt | Minimum | |||||||||||||||||
Long-term debt | |||||||||||||||||
Fixed interest rate | 0.88% | ||||||||||||||||
Senior secured delayed draw term loan | Sacred Wind Term Debt | Maximum | |||||||||||||||||
Long-term debt | |||||||||||||||||
Fixed interest rate | 5% | ||||||||||||||||
Interest rate swap | Alaska credit facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Number of derivative instruments | derivative | 2 | ||||||||||||||||
Interest rate swap | Alaska credit facility | SOFR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Notional amount | $ 200,000 | ||||||||||||||||
Interest rate swap | 2023 CoBank Credit Facility | 2023 CoBank Credit Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Notional amount | $ 50,000 | ||||||||||||||||
Interest rate swap | 2023 CoBank Credit Facility | 2023 CoBank Credit Facility | SOFR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Derivative, Term of debt | 2 years | ||||||||||||||||
Interest rate (in percent) | 4.896% | ||||||||||||||||
Interest rate swap One | Alaska credit facility | SOFR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Interest rate (in percent) | 4.8695% | ||||||||||||||||
Interest rate swap Two | Alaska credit facility | SOFR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Interest rate (in percent) | 4.898% | ||||||||||||||||
Alaska communications | Alaska credit facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Face amount of debt | $ 283,000 | ||||||||||||||||
Fixed charge coverage ratio | 1.25 | ||||||||||||||||
Net total leverage ratio | 4 | ||||||||||||||||
Financing costs | $ 7,300 | ||||||||||||||||
Unamortized financing costs | 3,900 | ||||||||||||||||
Consolidated EBITDA | 12 months | ||||||||||||||||
Alaska communications | Alaska credit facility | SOFR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 0.10% | ||||||||||||||||
Alaska communications | Alaska credit facility | Base rate | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 1% | ||||||||||||||||
Alaska communications | Alaska credit facility | Minimum | SOFR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 3% | ||||||||||||||||
Alaska communications | Alaska credit facility | Maximum | SOFR | |||||||||||||||||
Long-term debt | |||||||||||||||||
Basis spread on variable rate (as a percent) | 4% | ||||||||||||||||
Alaska communications | Alaska Term Facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Face amount of debt | $ 210,000 | ||||||||||||||||
Alaska communications | Revolver loan | Alaska credit facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Maximum borrowing capacity | $ 75,000 | 35,000 | |||||||||||||||
Remaining borrowing capacity | 40,000 | ||||||||||||||||
Borrowings outstanding | 228,600 | ||||||||||||||||
Revolving credit facility - borrowings | 35,000 | ||||||||||||||||
Alaska communications | Term loans | Alaska credit facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Outstanding borrowings | $ 230,000 | 210,000 | |||||||||||||||
Alaska communications | Secured delayed draw term loan | Alaska credit facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Remaining borrowing capacity | 0 | ||||||||||||||||
Outstanding borrowings | $ 6,000 | ||||||||||||||||
Fixed charge coverage ratio | 4 | ||||||||||||||||
Maximum borrowing capacity | $ 7,500 | ||||||||||||||||
Alaska communications | Incremental term loans | Alaska credit facility | Minimum | |||||||||||||||||
Long-term debt | |||||||||||||||||
Maximum borrowing capacity | $ 70,000 | ||||||||||||||||
Alaska communications | Designated as cash flow hedges | Interest rate swap | |||||||||||||||||
Long-term debt | |||||||||||||||||
Interest rate (in percent) | 1.6735% | ||||||||||||||||
Period of fourth quarter of 2023 To third quarter 2024 | Alaska communications | Alaska credit facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Periodic payment, principal | $ 1,400 | ||||||||||||||||
Debt Instrument, From Fourth Quarter of 2024 To Third Quarter of 2026 | Alaska communications | Alaska credit facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Periodic payment, principal | $ 2,900 | ||||||||||||||||
Period of second quarter of 2024 | Alaska credit facility | |||||||||||||||||
Long-term debt | |||||||||||||||||
Net total leverage ratio | 3.75 |
LONG-TERM DEBT - Quarterly Paym
LONG-TERM DEBT - Quarterly Payments Dates (Details) - 2023 CoBank Term Loan - 2023 CoBank Credit Facility | Jul. 13, 2023 USD ($) |
Quarterly Payment, December 31, 2023 - June 30, 2025 | |
Debt Instrument [Line Items] | |
Quarterly repayments | $ 812,500 |
Interest rate | 2.50% |
Quarterly Payment, December 31, 2025 - June 30, 2026 | |
Debt Instrument [Line Items] | |
Quarterly repayments | $ 1,625,000 |
Interest rate | 5% |
Quarterly Payment, December 31, 2026 - June 30, 2029 | |
Debt Instrument [Line Items] | |
Quarterly repayments | $ 2,437,500 |
Interest rate | 7.50% |
LONG-TERM DEBT - Debt Maturity
LONG-TERM DEBT - Debt Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Book Value | $ 516,870 | $ 421,900 |
Total Debt | ||
Debt Instrument [Line Items] | ||
2024 | 24,290 | |
2025 | 19,844 | |
2026 | 316,594 | |
2027 | 13,473 | |
2028 | 140,665 | |
Thereafter | 10,191 | |
Total | 525,057 | |
Debt Discounts | (8,187) | |
Book Value | 516,870 | |
Customer receivable credit facility | ||
Debt Instrument [Line Items] | ||
2024 | 7,110 | |
2025 | 7,428 | |
2026 | 7,761 | |
2027 | 8,111 | |
2028 | 8,478 | |
Thereafter | 7,650 | |
Total | 46,538 | |
Debt Discounts | (485) | |
Book Value | 46,053 | |
Corporate and Other | ||
Debt Instrument [Line Items] | ||
2024 | 3,250 | |
2025 | 4,875 | |
2026 | 8,125 | |
2027 | 9,750 | |
2028 | 136,807 | |
Total | 162,807 | |
Debt Discounts | (3,798) | |
Book Value | 159,009 | 99,000 |
US Telecom | Operating segments | ||
Debt Instrument [Line Items] | ||
Book Value | 293,607 | 263,241 |
US Telecom | Operating segments | Total Debt | ||
Debt Instrument [Line Items] | ||
2024 | 16,538 | |
2025 | 14,969 | |
2026 | 248,469 | |
2027 | 3,723 | |
2028 | 3,858 | |
Thereafter | 10,191 | |
Total | 297,748 | |
Debt Discounts | (4,142) | |
Book Value | 293,606 | |
International Telecom | Operating segments | ||
Debt Instrument [Line Items] | ||
Book Value | 64,254 | $ 59,659 |
International Telecom | Operating segments | Total Debt | ||
Debt Instrument [Line Items] | ||
2024 | 4,502 | |
2026 | 60,000 | |
Total | 64,502 | |
Debt Discounts | (247) | |
Book Value | $ 64,255 |
GOVERNMENT SUPPORT AND SPECTR_3
GOVERNMENT SUPPORT AND SPECTRUM MATTERS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jul. 15, 2022 USD ($) | Apr. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | |
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | $ 709,880 | $ 677,953 | $ 565,541 | |||||
Reimbursable capital expenditures | 32,871 | 7,905 | 9,700 | |||||
Amounts accrued for reimbursable capital expenditures from government capital programs | 31,769 | |||||||
Government capital programs - Amounts received | 31,873 | 2,853 | 7,517 | |||||
Payment for PALs | 1,068 | |||||||
USF, CAF II, RDOF and Other Programs | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 107,592 | 68,247 | 46,649 | |||||
USF, CAF II, RDOF and Other Programs | US Telecom | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 100,771 | 60,333 | 32,742 | |||||
USF, CAF II, RDOF and Other Programs | International Telecom | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | $ 6,821 | 7,914 | 13,907 | |||||
Universal Service Fund programs | ||||||||
Mobility Fund [Line Items] | ||||||||
Number Of Fund Disbursement Programs | item | 4 | |||||||
Grant received per year | $ 5,500 | |||||||
High cost support program | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | $ 14,831 | 12,321 | 16,356 | |||||
High cost support program | US Telecom | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 9,260 | 4,459 | 2,449 | |||||
High cost support program | International Telecom | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 5,571 | 7,862 | 13,907 | |||||
CAF II | Grant receivable through December 2025 | ||||||||
Mobility Fund [Line Items] | ||||||||
Amount that has been funded or will be funded | 27,700 | |||||||
CAF II | Grant receivable from January 2026 through July 2028 | ||||||||
Mobility Fund [Line Items] | ||||||||
Amount that has been funded or will be funded | 8,000 | |||||||
CAF II | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 27,260 | 27,264 | 16,330 | |||||
CAF II | US Telecom | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 27,260 | 27,264 | 16,330 | |||||
TBCP | ||||||||
Mobility Fund [Line Items] | ||||||||
Grant funds awarded during the period | 192,600 | |||||||
Vija's annual USF support | ||||||||
Mobility Fund [Line Items] | ||||||||
Amount that has been funded or will be funded | $ 10,900 | $ 16,400 | ||||||
Vija's annual USF support | Grant Receivable July 2022 Through June 2023 | ||||||||
Mobility Fund [Line Items] | ||||||||
Amount that has been funded or will be funded | $ 5,500 | |||||||
RDOF | ||||||||
Mobility Fund [Line Items] | ||||||||
Grant Funds Expected To Be Awarded | $ 22,700 | |||||||
Grant Fund Term | 10 years | |||||||
Number Of Households To Receive Broadband Coverage | item | 10,000 | |||||||
RDOF | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | $ 2,432 | 1,954 | ||||||
RDOF | US Telecom | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 2,432 | 1,954 | ||||||
ECF | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 26,346 | |||||||
ECF | US Telecom | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 26,346 | |||||||
RHC | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 11,995 | 11,018 | 5,778 | |||||
RHC | US Telecom | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 11,995 | 11,018 | 5,778 | |||||
Other Programs | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 24,728 | 15,690 | 8,185 | |||||
Other Programs | US Telecom | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 23,478 | 15,638 | $ 8,185 | |||||
Other Programs | International Telecom | Communication services | ||||||||
Mobility Fund [Line Items] | ||||||||
Revenue from contract with customer | 1,250 | $ 52 | ||||||
Remove And Replace Program | ||||||||
Mobility Fund [Line Items] | ||||||||
Amount that has been funded or will be funded | 47,300 | |||||||
Amount of cost reimbursement allocated | $ 207,000 | |||||||
Reimbursement period | 1 year | |||||||
Capital expenditure incurred to date | $ 17,500 | |||||||
Capital expenditure incurred within twelve months | 15,700 | |||||||
Capital expenditure accrued | 31,800 | |||||||
Proceeds from grant funds awarded | 17,100 | |||||||
Proceeds from grant funds awarded classified as operating cash inflows | 4,300 | |||||||
Proceeds from grant funds awarded classified as investing cash inflows | 12,800 | |||||||
Network Connectivity for Eligible Communities | ||||||||
Mobility Fund [Line Items] | ||||||||
Grant funds awarded during the period | $ 34,526 |
GOVERNMENT SUPPORT AND SPECTR_4
GOVERNMENT SUPPORT AND SPECTRUM MATTERS - Construction (Details) - Network Connectivity for Eligible Communities $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Mobility Fund [Line Items] | |
Grants awarded | $ 80,197 |
New grants | 34,526 |
Construction complete | (8,305) |
Transferred grants | (6,269) |
Grants awarded | $ 100,149 |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 14, 2023 | Jun. 07, 2023 | Jun. 06, 2023 | |
Stock-based compensation | ||||||
Number of shares reserved to be granted under the plan | 1,432,070 | |||||
Number of shares available for grant | 1,411,190 | |||||
Treasury Stock | ||||||
Shares Repurchased | 460,279 | 57,115 | 139,784 | |||
Purchases of common stock | $ 14,999 | $ 942 | $ 10,546 | |||
Shares repurchased to satisfy tax withholdings and exercise obligations | 36,951 | 33,401 | 33,271 | |||
Aggregate cost to satisfy tax withholdings and exercise obligations | $ 1,473 | $ 1,169 | $ 1,713 | |||
Average Repurchase Price (in dollars per share) | $ 39.86 | $ 35.01 | $ 51.49 | |||
Stock-based compensation, additional disclosures | ||||||
Cash proceeds received upon exercise of options | $ 383 | |||||
2016 Repurchase Plan | ||||||
Treasury Stock | ||||||
Shares Repurchased | 423,328 | 23,714 | 244,798 | |||
Purchases of common stock | $ 14,999 | $ 942 | $ 10,546 | |||
Average Repurchase Price (in dollars per share) | $ 35.43 | $ 39.70 | $ 43.08 | |||
2023 Repurchase plan | ||||||
Treasury Stock | ||||||
Authorized amount | $ 25,000 | |||||
Value of shares available for repurchase | $ 25,000 | |||||
Employee Stock Option | ||||||
Stock-based compensation | ||||||
Expiration term | 10 years | |||||
Vesting period | 4 years | |||||
Number of Options | ||||||
Outstanding at the beginning of the period | 5,000 | |||||
Granted | 0 | |||||
Expired | (5,000) | |||||
Outstanding at the end of the period | 5,000 | |||||
Weighted Avg. Exercise Price | ||||||
Outstanding at the beginning of the period (in dollars per share) | $ 71.43 | |||||
Outstanding at the end of the period (in dollars per share) | $ 71.43 | |||||
Weighted Average Remaining Contractual Term | ||||||
Outstanding | 0 years | |||||
Vested and expected to vest | 0 years | |||||
Exercisable | 0 years | |||||
Restricted Stock | ||||||
Stock-based compensation | ||||||
Vesting period | 4 years | |||||
Unamortized stock based compensation | ||||||
Unamortized stock based compensation | $ 7,900 | |||||
Weighted-average period for recognition of unamortized stock-based compensation cost | 2 years 4 months 24 days | |||||
Stock compensation expense | ||||||
Stock compensation expense | $ 5,400 | $ 6,800 | $ 5,400 | |||
Shares | ||||||
Unvested at the beginning of the period (in shares) | 260,497 | 228,068 | ||||
Granted (in shares) | 151,560 | 152,430 | ||||
Forfeited (in shares) | (9,354) | (12,486) | ||||
Vested and issued (in shares) | (118,419) | (107,515) | ||||
Unvested at the end of the period (in shares) | 284,284 | 260,497 | 228,068 | |||
Weighted Avg. Fair Value | ||||||
Unvested at the beginning of the period (in dollars per share) | $ 43.86 | $ 51.05 | ||||
Granted (in dollars per share) | 38.08 | 38.59 | ||||
Forfeited (in dollars per share) | 41.95 | 46.52 | ||||
Vested and issued (in dollars per share) | 44.99 | 51.33 | ||||
Unvested at the end of the period (in dollars per share) | $ 40.37 | $ 43.86 | $ 51.05 | |||
Restricted Stock | Management | ||||||
Stock compensation expense | ||||||
Stock compensation expense | $ 700 | $ 600 | $ 400 | |||
Performance Stock | ||||||
Unamortized stock based compensation | ||||||
Unamortized stock based compensation | $ 3,200 | |||||
Weighted-average period for recognition of unamortized stock-based compensation cost | 1 year 9 months 18 days | |||||
Stock compensation expense | ||||||
Stock compensation expense | $ 2,500 | $ 1,500 | $ 700 | |||
Shares | ||||||
Unvested at the beginning of the period (in shares) | 99,450 | 43,000 | ||||
Granted (in shares) | 59,100 | 56,450 | ||||
Unvested at the end of the period (in shares) | 158,550 | 99,450 | 43,000 | |||
Weighted Avg. Fair Value | ||||||
Unvested at the beginning of the period (in dollars per share) | $ 52.54 | $ 59.77 | ||||
Granted (in dollars per share) | 45.10 | 47.03 | ||||
Unvested at the end of the period (in dollars per share) | $ 49.77 | $ 52.54 | $ 59.77 | |||
2008 Plan | ||||||
Stock-based compensation | ||||||
Number of shares reserved to be granted under the plan | 0 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of income before income taxes | |||
Domestic | $ (57,289) | $ (37,777) | $ (38,407) |
Foreign | 29,750 | 29,721 | 15,720 |
LOSS BEFORE INCOME TAXES | $ (27,539) | $ (8,056) | $ (22,687) |
INCOME TAXES - Income Tax Recon
INCOME TAXES - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
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 | $ (5,783) | $ (1,681) | $ (4,760) |
Non-controlling interest | (62) | 844 | (158) |
Foreign tax rate differential | (8,853) | (6,525) | (4,520) |
Over (under) provided in prior periods | (179) | (437) | (78) |
Nondeductible expenses | 1,806 | 2,111 | 1,429 |
Capitalized transactions costs | 56 | 134 | 898 |
Change in tax reserves | 2,783 | 4,052 | 2,524 |
State Taxes, net of federal benefit | (1,776) | (1,126) | (1,399) |
Change in valuation allowance | 2,467 | 2,117 | 3,575 |
Investment Tax Credit | 84 | 84 | 101 |
Stock-based compensation | 812 | 696 | 510 |
Deferred income tax revaluation | (140) | (742) | |
Total income tax expense (benefit) | $ (8,785) | $ (473) | $ (1,878) |
INCOME TAXES - Components of _2
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
United States-Federal | $ 921 | $ 302 | $ 460 |
United States-State | 404 | 20 | 2 |
Foreign | 6,646 | 6,657 | 4,272 |
Total current income tax expense | 7,971 | 6,979 | 4,734 |
Deferred: | |||
United States-Federal | (7,786) | (4,527) | (5,800) |
United States-State | (2,781) | (1,895) | (1,402) |
Foreign | (6,189) | (1,030) | 590 |
Total deferred income tax expense (benefit) | (16,756) | (7,452) | (6,612) |
Consolidated: | |||
United States-Federal | (6,865) | (4,225) | (5,340) |
United States-State | (2,377) | (1,875) | (1,400) |
Foreign | 457 | 5,627 | 4,862 |
Total income tax expense (benefit) | (8,785) | (473) | $ (1,878) |
Deferred tax assets: | |||
Accounts receivable and inventory allowances | 2,552 | 2,567 | |
Basis in investments | 3,795 | 4,387 | |
Accrued expenses | 7,331 | 7,063 | |
Deferred revenue | 26,768 | 27,526 | |
Employee benefits | 4,515 | 6,690 | |
Other, net | 14,764 | 6,892 | |
Net operating losses | 78,876 | 63,713 | |
Tax Credits | 5,659 | 2,995 | |
Operating lease liability | 23,370 | 24,451 | |
Total deferred tax asset | 167,630 | 146,284 | |
Deferred tax liabilities: | |||
Acquired intangible assets, property and equipment | 105,729 | 106,529 | |
Right-of-use asset | 27,099 | 27,796 | |
Prepaid expense | 250 | 197 | |
Total deferred tax liabilities | 133,078 | 134,522 | |
Valuation allowance | (43,118) | (35,759) | |
Net deferred tax liabilities | (8,566) | (23,997) | |
Deferred tax assets: | |||
Total deferred tax asset | 11,209 | 4,653 | |
Deferred tax liabilities: | |||
Total deferred tax liabilities | (19,775) | (28,650) | |
Net deferred tax liabilities | $ (8,566) | $ (23,997) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating loss carryforwards | |||
Effective tax rate (as a percent) | 31.90% | 5.90% | |
Increase unrecognized tax benefits | $ 2,800 | $ 4,100 | |
Net increase for permanently non-deductible expenses | 2,100 | ||
Income tax benefit to record a valuation allowance adjustment on an indefinite lived intangible asset | 2,467 | 2,117 | $ 3,575 |
Operating loss carryforward that will expire | 173,800 | ||
Operating loss carryforward with no expiration | 300,200 | ||
Valuation allowance | 43,118 | 35,759 | |
Undistributed earnings of foreign subsidiaries | 185,300 | ||
Unrecognized benefits, including interest and penalties | 49,900 | 48,600 | 51,300 |
Increase from prior period positions | 2,700 | ||
Lapse in statute of a prior year position | 4,000 | ||
Increase in unrecognized tax benefits taken during the current period | 2,598 | 5,080 | 3,880 |
Decrease in unrecognized tax benefits acquired as part of a business combination | 6,825 | ||
Interest and penalties accrued | 9,800 | $ 8,700 | $ 7,600 |
Federal | |||
Operating loss carryforwards | |||
Operating loss carryforwards | 155,400 | ||
State | |||
Operating loss carryforwards | |||
Operating loss carryforwards | 152,700 | ||
Foreign | |||
Operating loss carryforwards | |||
Operating loss carryforwards | $ 165,800 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Activity related to unrecognized tax benefits | |||
Gross unrecognized tax benefits at the beginning of the period | $ 39,919 | $ 43,714 | $ 33,878 |
Increase in unrecognized tax benefits taken during a prior period | (216) | ||
Increase in unrecognized tax benefits taken during the current period | 2,598 | 5,080 | 3,880 |
Increase in unrecognized tax benefits acquired as part of a business combination | 8,275 | ||
Increase in unrecognized tax benefits acquired as part of a business combination | (6,825) | ||
Lapse in statute of limitations | (2,449) | (2,050) | (2,103) |
Gross unrecognized tax benefits at the end of the period | $ 40,068 | $ 39,919 | $ 43,714 |
RETIREMENT PLANS - Rate Assumpt
RETIREMENT PLANS - Rate Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension benefits | |||
Weighted-average rates assumed in the actuarial calculations for the pension plan | |||
Discount rate for benefit obligation | 4.30% | 5.40% | 2.90% |
Discount rate for benefit cost | 5.40% | 2.90% | 2.60% |
Expected long-term return on plan assets | 5.30% | 5.20% | 5.30% |
Postretirement benefits | |||
Weighted-average rates assumed in the actuarial calculations for the pension plan | |||
Discount rate for benefit obligation | 5.20% | 5.40% | 2.80% |
Discount rate for benefit cost | 5.20% | 2.80% | 2.50% |
Postretirement benefits | Medical benefit plan | |||
Health care cost trend rates | |||
Trend rate | 12% | ||
Ultimate rate | 4% | ||
Postretirement benefits | Dental benefit plan | |||
Health care cost trend rates | |||
Trend rate | 4% |
RETIREMENT PLANS - Benefit Obli
RETIREMENT PLANS - Benefit Obligations and Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension benefits | |||
Projected benefit obligations: | |||
Balance at beginning of year | $ 66,175 | $ 100,624 | |
Service cost | 90 | 151 | $ 229 |
Interest cost | 3,323 | 2,373 | 2,043 |
Benefits and settlements paid | (6,899) | (18,490) | |
Actuarial (gain) loss | 1,460 | (16,758) | |
Settlement | (1,725) | ||
Balance at end of year | 64,149 | 66,175 | 100,624 |
Plan net assets: | |||
Balance at beginning of year | 71,552 | 103,718 | |
Actual return on plan assets | 7,142 | (13,188) | |
Company contributions | 207 | ||
Benefits and settlements paid | (7,397) | (18,978) | |
Balance at end of year | 71,504 | 71,552 | 103,718 |
Funded status of plan | |||
Projected benefit obligation | 64,149 | 66,175 | 100,624 |
Plan Net Assets | 71,504 | 71,552 | 103,718 |
Over/ (Under) funded status of plan | 7,355 | 5,377 | |
Pension benefits | GT&T Pension Benefit | |||
Projected benefit obligations: | |||
Balance at beginning of year | 2,038 | ||
Balance at end of year | 2,038 | ||
Plan net assets: | |||
Balance at beginning of year | 2,038 | ||
Balance at end of year | 2,038 | ||
Funded status of plan | |||
Projected benefit obligation | 2,038 | ||
Plan Net Assets | 2,038 | ||
Pension benefits | Viya Pension Benefit | |||
Projected benefit obligations: | |||
Balance at beginning of year | 52,832 | ||
Balance at end of year | 53,075 | 52,832 | |
Plan net assets: | |||
Balance at beginning of year | 60,132 | ||
Balance at end of year | 62,142 | 60,132 | |
Funded status of plan | |||
Projected benefit obligation | 53,075 | 52,832 | |
Plan Net Assets | 62,142 | 60,132 | |
Over/ (Under) funded status of plan | 9,067 | 7,300 | |
Pension benefits | Alaska Pension Benefit | |||
Projected benefit obligations: | |||
Balance at beginning of year | 11,305 | ||
Balance at end of year | 11,074 | 11,305 | |
Plan net assets: | |||
Balance at beginning of year | 9,382 | ||
Balance at end of year | 9,362 | 9,382 | |
Funded status of plan | |||
Projected benefit obligation | 11,074 | 11,305 | |
Plan Net Assets | 9,362 | 9,382 | |
Over/ (Under) funded status of plan | (1,712) | (1,923) | |
Postretirement benefits | |||
Projected benefit obligations: | |||
Balance at beginning of year | 3,624 | 5,343 | |
Service cost | 65 | 124 | 143 |
Interest cost | 182 | 139 | 127 |
Benefits and settlements paid | (309) | (396) | |
Actuarial (gain) loss | 63 | (1,586) | |
Balance at end of year | 3,625 | 3,624 | 5,343 |
Plan net assets: | |||
Company contributions | 309 | 396 | |
Benefits and settlements paid | (309) | (396) | |
Funded status of plan | |||
Projected benefit obligation | 3,625 | 3,624 | $ 5,343 |
Over/ (Under) funded status of plan | (3,625) | (3,624) | |
Postretirement benefits | Viya Pension Benefit | |||
Projected benefit obligations: | |||
Balance at beginning of year | 3,337 | ||
Balance at end of year | 3,341 | 3,337 | |
Funded status of plan | |||
Projected benefit obligation | 3,341 | 3,337 | |
Over/ (Under) funded status of plan | (3,341) | (3,337) | |
Postretirement benefits | Alaska Pension Benefit | |||
Projected benefit obligations: | |||
Balance at beginning of year | 287 | ||
Balance at end of year | 284 | 287 | |
Funded status of plan | |||
Projected benefit obligation | 284 | 287 | |
Over/ (Under) funded status of plan | $ (284) | $ (287) |
RETIREMENT PLANS - Net Assets a
RETIREMENT PLANS - Net Assets and Allocations (Details) - Pension benefits - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Pension plan assets | |||
Fair value of plan assets | $ 71,504 | $ 71,552 | $ 103,718 |
Weighted-average asset allocations (as a percent) | 100% | 100% | |
Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 37,776 | $ 48,639 | |
Level 2 | |||
Pension plan assets | |||
Fair value of plan assets | 33,728 | 22,913 | |
Cash, cash equivalents, money markets and other | |||
Pension plan assets | |||
Fair value of plan assets | $ 2,642 | $ 7,572 | |
Weighted-average asset allocations (as a percent) | 4% | 11% | |
Cash, cash equivalents, money markets and other | Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 2,642 | $ 7,572 | |
Common Stock | |||
Pension plan assets | |||
Fair value of plan assets | $ 12,680 | $ 17,974 | |
Weighted-average asset allocations (as a percent) | 18% | 25% | |
Common Stock | Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 12,680 | $ 17,974 | |
Mutual funds - fixed income | |||
Pension plan assets | |||
Fair value of plan assets | $ 8,836 | $ 10,732 | |
Weighted-average asset allocations (as a percent) | 12% | 15% | |
Mutual funds - fixed income | Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 8,836 | $ 10,732 | |
Mutual funds - equities | |||
Pension plan assets | |||
Fair value of plan assets | $ 9,527 | $ 5,228 | |
Weighted-average asset allocations (as a percent) | 13% | 7% | |
Mutual funds - equities | Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 9,527 | $ 5,228 | |
Fixed income securities | |||
Pension plan assets | |||
Fair value of plan assets | $ 33,728 | $ 22,913 | |
Weighted-average asset allocations (as a percent) | 47% | 32% | |
Fixed income securities | Level 2 | |||
Pension plan assets | |||
Fair value of plan assets | $ 33,728 | $ 22,913 | |
Other plan assets | |||
Pension plan assets | |||
Fair value of plan assets | $ 4,091 | $ 7,133 | |
Weighted-average asset allocations (as a percent) | 6% | 10% | |
Other plan assets | Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 4,091 | $ 7,133 |
RETIREMENT PLANS - Amounts in C
RETIREMENT PLANS - Amounts in Consolidated Financials (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Pension benefits | ||
Amounts recognized on the consolidated balance sheets | ||
Other Liabilities | $ 1,712 | $ 1,923 |
Other Assets | 9,070 | 7,303 |
Accumulated other comprehensive income, net of tax | 8,592 | 6,191 |
Amounts recognized in accumulated other comprehensive loss | ||
Unrecognized net actuarial gain | 8,842 | 6,268 |
Accumulated other comprehensive income, pre-tax | 8,842 | 6,268 |
Accumulated other comprehensive income, net of tax | 8,592 | 6,191 |
Postretirement benefits | ||
Amounts recognized on the consolidated balance sheets | ||
Accrued and current liabilities | 310 | 294 |
Other Liabilities | 3,318 | 3,068 |
Accumulated other comprehensive income, net of tax | 1,415 | 1,589 |
Amounts recognized in accumulated other comprehensive loss | ||
Unrecognized net actuarial gain | 1,614 | 1,614 |
Accumulated other comprehensive income, pre-tax | 1,614 | 1,614 |
Accumulated other comprehensive income, net of tax | $ 1,415 | $ 1,589 |
RETIREMENT PLANS - Net Periodic
RETIREMENT PLANS - Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of the plan's net periodic pension cost | |||
Settlements | $ 369 | $ 1,725 | |
Pension benefits | |||
Components of the plan's net periodic pension cost | |||
Service cost | 90 | 151 | $ 229 |
Interest cost | 3,323 | 2,373 | 2,043 |
Expected return on plan assets | (2,936) | (3,814) | (3,366) |
Amortization of actuarial (gain) loss | (43) | ||
Settlements | 1,725 | 34 | |
Net periodic pension cost | 434 | 435 | (1,060) |
Postretirement benefits | |||
Components of the plan's net periodic pension cost | |||
Service cost | 65 | 124 | 143 |
Interest cost | 182 | 139 | 127 |
Amortization of actuarial (gain) loss | (113) | ||
Net periodic pension cost | $ 134 | $ 263 | $ 270 |
RETIREMENT PLANS - Expected fut
RETIREMENT PLANS - Expected future service (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Pension benefits | |
Estimated Pension Benefits | |
2024 | $ 5,365 |
2025 | 4,899 |
2026 | 4,969 |
2027 | 5,026 |
2028 | 4,775 |
2029- 2033 | 23,351 |
Total | 48,385 |
Postretirement benefits | |
Estimated Pension Benefits | |
2024 | 317 |
2025 | 333 |
2026 | 238 |
2027 | 265 |
2028 | 265 |
2029- 2033 | 1,483 |
Total | $ 2,901 |
RETIREMENT PLANS - Multi-employ
RETIREMENT PLANS - Multi-employer pension plan (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) employee | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
RETIREMENT PLANS | |||
Number of employee covered | employee | 541 | ||
Contribution cost | $ | $ 6.2 | $ 6.6 | $ 3.1 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Pending litigation, adverse outcome | |
Commitments and contingencies | |
Accrued contingent liability | $ 16.3 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Other Obligations (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Contractual obligation | |
2024 | $ 121,989 |
2025 | 74,457 |
2026 | 32,220 |
2027 | 19,005 |
2028 | 13,816 |
Thereafter | 106,373 |
Total obligations | $ 367,860 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 01, 2023 USD ($) | Dec. 31, 2020 USD ($) | |
Segment reporting | |||||
Number of reportable segments | segment | 2 | ||||
Number of operating segments | segment | 2 | ||||
Revenue | |||||
Revenue | $ 762,216 | $ 725,745 | $ 602,707 | ||
Depreciation and amortization | 141,627 | 135,137 | 102,731 | ||
Amortization of intangibles from acquisitions | 12,636 | 13,016 | 7,775 | ||
Non-cash stock-based compensation | 8,535 | 7,406 | 6,581 | ||
Operating income (loss) | 13,175 | 7,942 | (15,026) | ||
Segment Assets | |||||
Cash, cash equivalents, and restricted cash | 62,167 | 59,728 | 80,697 | $ 104,997 | |
Total current assets | 281,272 | 229,688 | |||
Fixed Assets, net | 1,080,659 | 1,055,954 | |||
Goodwill | 40,104 | 40,104 | |||
Total assets | 1,783,714 | 1,707,869 | |||
Total current liabilities | 293,194 | 233,180 | |||
Total debt, including current portion | 516,870 | 421,900 | |||
Capital Expenditures | |||||
Capital expenditures | 196,168 | 168,019 | |||
Communication services | |||||
Revenue | |||||
Revenue | 735,082 | 692,221 | 549,620 | ||
Mobility | |||||
Revenue | |||||
Revenue | 112,523 | 110,018 | 102,301 | ||
Mobility - Business | |||||
Revenue | |||||
Revenue | 16,860 | 16,058 | 8,385 | ||
Mobility - Consumer | |||||
Revenue | |||||
Revenue | 95,663 | 93,960 | 93,916 | ||
Fixed | |||||
Revenue | |||||
Revenue | 472,773 | 438,384 | 328,643 | ||
Fixed - Business | |||||
Revenue | |||||
Revenue | 214,537 | 196,638 | 120,741 | ||
Fixed - Consumer | |||||
Revenue | |||||
Revenue | 258,236 | 241,746 | 207,902 | ||
Carrier services | |||||
Revenue | |||||
Revenue | 142,881 | 142,323 | 117,730 | ||
Other communication services | |||||
Revenue | |||||
Revenue | 6,905 | 1,496 | 946 | ||
Construction. | |||||
Revenue | |||||
Revenue | 10,629 | 15,762 | 35,889 | ||
Other revenue | |||||
Revenue | |||||
Revenue | 16,505 | 17,762 | 17,198 | ||
Renewable Energy | |||||
Revenue | |||||
Revenue | 417 | ||||
Managed Services | |||||
Revenue | |||||
Revenue | 16,505 | 17,762 | 16,781 | ||
Corporate and Other | |||||
Revenue | |||||
Revenue | 417 | ||||
Depreciation and amortization | 2,613 | 3,549 | 5,269 | ||
Non-cash stock-based compensation | 7,857 | 6,779 | 6,182 | ||
Operating income (loss) | (34,723) | (38,414) | (34,909) | ||
Segment Assets | |||||
Cash, cash equivalents, and restricted cash | 2,239 | 6,935 | |||
Total current assets | 11,035 | 8,326 | |||
Fixed Assets, net | 4,915 | 7,538 | |||
Total assets | 91,619 | 83,662 | |||
Total current liabilities | 37,357 | 26,687 | |||
Total debt, including current portion | 159,009 | 99,000 | |||
Capital Expenditures | |||||
Capital expenditures | 1,045 | ||||
Corporate and Other | Other revenue | |||||
Revenue | |||||
Revenue | 417 | ||||
Corporate and Other | Renewable Energy | |||||
Revenue | |||||
Revenue | 417 | ||||
International Telecom | |||||
Segment Assets | |||||
Goodwill | 4,836 | 4,836 | |||
International Telecom | Operating segments | |||||
Revenue | |||||
Revenue | 370,733 | 355,581 | 342,859 | ||
Depreciation and amortization | 57,420 | 56,568 | 53,858 | ||
Amortization of intangibles from acquisitions | 1,253 | 1,572 | 1,648 | ||
Non-cash stock-based compensation | 431 | 240 | 128 | ||
Operating income (loss) | 53,420 | 52,011 | 33,899 | ||
Segment Assets | |||||
Cash, cash equivalents, and restricted cash | 26,354 | 26,418 | |||
Total current assets | 107,469 | 105,324 | |||
Fixed Assets, net | 481,911 | 462,447 | |||
Goodwill | 4,836 | 4,835 | |||
Total assets | 672,171 | 643,664 | |||
Total current liabilities | 86,540 | 86,738 | |||
Total debt, including current portion | 64,254 | 59,659 | |||
Capital Expenditures | |||||
Capital expenditures | 76,379 | 70,385 | |||
International Telecom | Operating segments | Communication services | |||||
Revenue | |||||
Revenue | 365,406 | 350,651 | 337,713 | ||
International Telecom | Operating segments | Mobility | |||||
Revenue | |||||
Revenue | 108,486 | 102,431 | 93,367 | ||
International Telecom | Operating segments | Mobility - Business | |||||
Revenue | |||||
Revenue | 16,333 | 14,830 | 6,983 | ||
International Telecom | Operating segments | Mobility - Consumer | |||||
Revenue | |||||
Revenue | 92,153 | 87,601 | 86,384 | ||
International Telecom | Operating segments | Fixed | |||||
Revenue | |||||
Revenue | 239,168 | 233,311 | 233,463 | ||
International Telecom | Operating segments | Fixed - Business | |||||
Revenue | |||||
Revenue | 71,215 | 69,903 | 67,458 | ||
International Telecom | Operating segments | Fixed - Consumer | |||||
Revenue | |||||
Revenue | 167,953 | 163,408 | 166,005 | ||
International Telecom | Operating segments | Carrier services | |||||
Revenue | |||||
Revenue | 14,686 | 13,459 | 9,937 | ||
International Telecom | Operating segments | Other communication services | |||||
Revenue | |||||
Revenue | 3,066 | 1,450 | 946 | ||
International Telecom | Operating segments | Other revenue | |||||
Revenue | |||||
Revenue | 5,327 | 4,930 | 5,146 | ||
International Telecom | Operating segments | Managed Services | |||||
Revenue | |||||
Revenue | 5,327 | 4,930 | 5,146 | ||
US Telecom | |||||
Segment Assets | |||||
Goodwill | 35,268 | 35,268 | $ 35,300 | ||
US Telecom | Operating segments | |||||
Revenue | |||||
Revenue | 391,483 | 370,164 | 259,431 | ||
Depreciation and amortization | 81,594 | 75,020 | 43,604 | ||
Amortization of intangibles from acquisitions | 11,383 | 11,444 | 6,127 | ||
Non-cash stock-based compensation | 247 | 387 | 271 | ||
Operating income (loss) | (5,522) | (5,655) | (14,016) | ||
Segment Assets | |||||
Cash, cash equivalents, and restricted cash | 33,574 | 26,375 | |||
Total current assets | 162,768 | 116,038 | |||
Fixed Assets, net | 593,833 | 585,969 | |||
Goodwill | 35,268 | 35,269 | |||
Total assets | 1,019,924 | 980,543 | |||
Total current liabilities | 169,297 | 119,755 | |||
Total debt, including current portion | 293,607 | 263,241 | |||
Capital Expenditures | |||||
Capital expenditures | 119,789 | 96,589 | |||
US Telecom | Operating segments | Communication services | |||||
Revenue | |||||
Revenue | 369,676 | 341,570 | 211,907 | ||
US Telecom | Operating segments | Mobility | |||||
Revenue | |||||
Revenue | 4,037 | 7,587 | 8,934 | ||
US Telecom | Operating segments | Mobility - Business | |||||
Revenue | |||||
Revenue | 527 | 1,228 | 1,402 | ||
US Telecom | Operating segments | Mobility - Consumer | |||||
Revenue | |||||
Revenue | 3,510 | 6,359 | 7,532 | ||
US Telecom | Operating segments | Fixed | |||||
Revenue | |||||
Revenue | 233,605 | 205,073 | 95,180 | ||
US Telecom | Operating segments | Fixed - Business | |||||
Revenue | |||||
Revenue | 143,322 | 126,735 | 53,283 | ||
US Telecom | Operating segments | Fixed - Consumer | |||||
Revenue | |||||
Revenue | 90,283 | 78,338 | 41,897 | ||
US Telecom | Operating segments | Carrier services | |||||
Revenue | |||||
Revenue | 128,195 | 128,864 | 107,793 | ||
US Telecom | Operating segments | Other communication services | |||||
Revenue | |||||
Revenue | 3,839 | 46 | |||
US Telecom | Operating segments | Construction. | |||||
Revenue | |||||
Revenue | 10,629 | 15,762 | 35,889 | ||
US Telecom | Operating segments | Other revenue | |||||
Revenue | |||||
Revenue | 11,178 | 12,832 | 11,635 | ||
US Telecom | Operating segments | Managed Services | |||||
Revenue | |||||
Revenue | $ 11,178 | $ 12,832 | $ 11,635 |
SEGMENT REPORTING - Revenue and
SEGMENT REPORTING - Revenue and Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue and long lived assets | |||
Revenue | $ 762,216 | $ 725,745 | $ 602,707 |
Long-Lived Assets | 1,502,442 | 1,478,180 | 1,375,986 |
US | |||
Revenue and long lived assets | |||
Revenue | 391,870 | 370,204 | 259,430 |
Long-Lived Assets | 938,650 | 927,177 | 840,251 |
Guyana | |||
Revenue and long lived assets | |||
Revenue | 119,915 | 113,816 | 108,338 |
Long-Lived Assets | 195,030 | 174,719 | 152,627 |
US Virgin Islands | |||
Revenue and long lived assets | |||
Revenue | 95,129 | 93,264 | 94,310 |
Long-Lived Assets | 213,553 | 209,101 | 210,448 |
Bermuda | |||
Revenue and long lived assets | |||
Revenue | 114,096 | 110,337 | 104,671 |
Long-Lived Assets | 102,227 | 100,125 | 107,885 |
Other Foreign Countries | |||
Revenue and long lived assets | |||
Revenue | 41,206 | 38,124 | 35,958 |
Long-Lived Assets | $ 52,982 | $ 67,058 | $ 64,775 |
SCHEDULE II VALUATION AND QUA_2
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 50,930 | $ 47,527 | $ 43,135 |
Charged to Costs and Expenses | 13,339 | 9,348 | 7,478 |
Deductions | 4,789 | 5,945 | 3,086 |
Balance at End of Year | 59,480 | 50,930 | 47,527 |
Valuation allowance on net operating losses and other deferred taxes | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 35,759 | 33,642 | 31,014 |
Charged to Costs and Expenses | 8,327 | 2,653 | 2,628 |
Deductions | 968 | 536 | |
Balance at End of Year | 43,118 | 35,759 | 33,642 |
Allowance for credit losses | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 15,171 | 13,885 | 12,121 |
Charged to Costs and Expenses | 5,012 | 6,695 | 4,850 |
Deductions | 3,821 | 5,409 | 3,086 |
Balance at End of Year | $ 16,362 | $ 15,171 | $ 13,885 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |