Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 07, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 320,661,412 | ||
Entity Registrant Name | NII HOLDINGS INC | ||
Entity Central Index Key | 1,037,016 | ||
Entity Tax Identification Number | 911,671,412 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 100,778,744 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Successor [Member] | ||
Current assets | ||
Cash and cash equivalents | $ 257,380 | $ 342,184 |
Short-term investments | 73,859 | 84,317 |
Accounts receivable, net of allowance for doubtful accounts of $54,221 and $39,033 | 153,806 | 144,629 |
Handset and accessory inventory | 8,295 | 24,358 |
Prepaid expenses and other | 280,145 | 132,534 |
Total current assets | 773,485 | 728,022 |
Property, plant and equipment, net | 129,475 | 555,023 |
Intangible assets, net | 243,681 | 892,622 |
Other assets | 271,868 | 554,241 |
Total assets | 1,418,509 | 2,729,908 |
Current liabilities | ||
Accounts payable | 69,186 | 43,765 |
Accrued expenses and other | 271,899 | 268,858 |
Deferred revenues | 11,614 | 10,386 |
Current portion of long-term debt | 540,474 | 582,420 |
Total current liabilities | 893,173 | 905,429 |
Long-term debt | 215,842 | 82,647 |
Other long-term liabilities | 143,472 | 197,837 |
Total liabilities | 1,252,487 | 1,185,913 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity | ||
Undesignated preferred stock, par value $0.001, 10,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, par value $0.001, 140,000 shares authorized, 100,258 shares issued and outstanding — 2016, 100,001 shares issued and outstanding — 2015 | 100 | 100 |
Paid-in capital | 2,076,612 | 2,070,497 |
Accumulated deficit | (1,834,756) | (280,883) |
Accumulated other comprehensive loss | (75,934) | (245,719) |
Total stockholders’ equity | 166,022 | 1,543,995 |
Total liabilities and stockholders’ equity | $ 1,418,509 | $ 2,729,908 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Preferred stock, shares issued (in shares) | 0 | |
Successor [Member] | ||
Allowance for doubtful accounts receivable | $ 54,221 | $ 39,033 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common stock shares issued (in shares) | 100,258,000 | 100,001,000 |
Common stock shares outstanding (in shares) | 100,258,000 | 100,001,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Successor [Member] | ||||
Operating revenues | ||||
Service and other revenues | $ 501,130 | $ 963,209 | ||
Handset and accessory revenues | 28,304 | 21,837 | ||
Total operating revenues | 529,434 | 985,046 | ||
Operating expenses | ||||
Cost of service (exclusive of depreciation and amortization included below) | 212,852 | 364,648 | ||
Cost of handsets and accessories | 46,904 | 29,273 | ||
Selling, general and administrative | 311,703 | 560,760 | ||
Impairment, restructuring and other charges | 32,308 | 1,384,811 | ||
Depreciation | 64,108 | 135,429 | ||
Amortization | 21,256 | 36,954 | ||
Total operating expenses | 689,131 | 2,511,875 | ||
Operating loss | (159,697) | (1,526,829) | ||
Other (expense) income | ||||
Interest expense, net | (55,563) | (113,732) | ||
Interest income | 17,200 | 37,689 | ||
Foreign currency transaction gains (losses), net | (99,737) | 76,615 | ||
Other expense, net | (1,176) | (9,711) | ||
Total other expense | (139,276) | (9,139) | ||
Loss from continuing operations before reorganization items and income tax benefit (provision) | (298,973) | (1,535,968) | ||
Reorganization items (Note 3) | 1,467 | (803) | ||
Income tax benefit (provision) (Note 11) | 5,015 | 2,892 | ||
Net (loss) income from continuing operations | (292,491) | (1,533,879) | ||
(Loss) income from discontinued operations, net of income taxes (Note 6) | 11,608 | (19,994) | ||
Net (loss) income | $ (280,883) | $ (1,553,873) | ||
Net (loss) income from continuing operations per common share, basic | $ (2.93) | $ (15.32) | ||
Net (loss) income from discontinued operations per common share, basic | 0.12 | (0.20) | ||
Net (loss) income per common share, basic | (2.81) | (15.52) | ||
Net (loss) income from continuing operations per common share, diluted | (2.93) | (15.32) | ||
Net (loss) income from discontinued operations per common share, diluted | 0.12 | (0.20) | ||
Net (loss) income per common share, diluted | $ (2.81) | $ (15.52) | ||
Weighted average number of common shares outstanding, basic | 100,000 | 100,098 | ||
Weighted average number of common shares outstanding, diluted | 100,000 | 100,098 | ||
Comprehensive (loss) income, net of income taxes | ||||
Foreign currency translation adjustment | $ (248,781) | $ 169,785 | ||
Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Chile (Note 6) | (1,672) | 0 | ||
Other | 4,734 | 0 | ||
Other comprehensive income (loss) | (245,719) | 169,785 | ||
Net (loss) income | (280,883) | (1,553,873) | ||
Total comprehensive (loss) income | $ (526,602) | $ (1,384,088) | ||
Predecessor [Member] | ||||
Operating revenues | ||||
Service and other revenues | $ 643,904 | $ 1,691,849 | ||
Handset and accessory revenues | 39,807 | 157,105 | ||
Total operating revenues | 683,711 | 1,848,954 | ||
Operating expenses | ||||
Cost of service (exclusive of depreciation and amortization included below) | 256,085 | 692,601 | ||
Cost of handsets and accessories | 121,143 | 415,450 | ||
Selling, general and administrative | 419,699 | 997,735 | ||
Impairment, restructuring and other charges | 36,792 | 105,664 | ||
Depreciation | 126,789 | 340,159 | ||
Amortization | 27,089 | 53,902 | ||
Total operating expenses | 987,597 | 2,605,511 | ||
Operating loss | (303,886) | (756,557) | ||
Other (expense) income | ||||
Interest expense, net | (82,820) | (372,904) | ||
Interest income | 15,327 | 38,345 | ||
Foreign currency transaction gains (losses), net | (63,948) | (51,149) | ||
Other expense, net | (137) | (5,829) | ||
Total other expense | (131,578) | (391,537) | ||
Loss from continuing operations before reorganization items and income tax benefit (provision) | (435,464) | (1,148,094) | ||
Reorganization items (Note 3) | 1,956,874 | (71,601) | ||
Income tax benefit (provision) (Note 11) | (2,009) | (4,976) | ||
Net (loss) income from continuing operations | 1,519,401 | (1,224,671) | ||
(Loss) income from discontinued operations, net of income taxes (Note 6) | 221,114 | (733,027) | ||
Net (loss) income | $ 1,740,515 | $ (1,957,698) | ||
Net (loss) income from continuing operations per common share, basic | $ 8.73 | $ (7.11) | ||
Net (loss) income from discontinued operations per common share, basic | 1.27 | (4.25) | ||
Net (loss) income per common share, basic | 10 | (11.36) | ||
Net (loss) income from continuing operations per common share, diluted | 8.71 | (7.11) | ||
Net (loss) income from discontinued operations per common share, diluted | 1.27 | (4.25) | ||
Net (loss) income per common share, diluted | $ 9.98 | $ (11.36) | ||
Weighted average number of common shares outstanding, basic | 172,363 | 172,283 | ||
Weighted average number of common shares outstanding, diluted | 172,691 | 172,283 | ||
Comprehensive (loss) income, net of income taxes | ||||
Foreign currency translation adjustment | $ (205,899) | $ (340,847) | ||
Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Chile (Note 6) | 421,953 | (33,885) | ||
Other | 2,956 | (544) | ||
Other comprehensive income (loss) | 219,010 | (375,276) | ||
Net (loss) income | 1,740,515 | (1,957,698) | ||
Total comprehensive (loss) income | $ 1,959,525 | $ (2,332,974) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning Balance, Shares (Predecessor [Member]) at Dec. 31, 2013 | 172,105 | ||||
Beginning Balance, Value (Predecessor [Member]) at Dec. 31, 2013 | $ 355,387 | $ 172 | $ 1,504,258 | $ (192,966) | $ (956,077) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | Predecessor [Member] | (1,957,698) | (1,957,698) | |||
Other comprehensive (loss) income | Predecessor [Member] | (375,276) | (375,276) | |||
Share-based compensation activity, Shares | Predecessor [Member] | 258 | ||||
Share-based compensation activity | Predecessor [Member] | 12,823 | 12,823 | |||
Ending Balance, Shares (Predecessor [Member]) at Dec. 31, 2014 | 172,363 | ||||
Ending Balance, Value (Predecessor [Member]) at Dec. 31, 2014 | (1,964,764) | $ 172 | 1,517,081 | (2,150,664) | (1,331,353) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | Predecessor [Member] | 1,740,515 | 1,740,515 | |||
Other comprehensive (loss) income | Predecessor [Member] | 219,010 | 219,010 | |||
Share-based compensation activity | Predecessor [Member] | 5,239 | 5,239 | |||
Ending Balance, Shares (Predecessor [Member]) at Jun. 30, 2015 | 172,363 | ||||
Ending Balance, Value (Predecessor [Member]) at Jun. 30, 2015 | $ 172 | 1,522,320 | (410,149) | (1,112,343) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Elimination of Predecessor Company's equity, Shares | Predecessor [Member] | (172,363) | ||||
Elimination of Predecessor Company's equity | Predecessor [Member] | $ (172) | (1,522,320) | 410,149 | 1,112,343 | |
Issuance of Successor Company's common stock, Shares | Successor [Member] | 100,000 | ||||
Issuance of Successor Company's common stock | Successor [Member] | 2,067,665 | $ 100 | 2,067,565 | ||
Ending Balance, Shares (Successor [Member]) at Jul. 01, 2015 | 100,000 | ||||
Ending Balance, Value (Successor [Member]) at Jul. 01, 2015 | 2,067,665 | $ 100 | 2,067,565 | ||
Beginning Balance, Shares (Predecessor [Member]) at Jun. 30, 2015 | 172,363 | ||||
Beginning Balance, Value (Predecessor [Member]) at Jun. 30, 2015 | $ 172 | 1,522,320 | (410,149) | (1,112,343) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | Successor [Member] | (280,883) | ||||
Other comprehensive (loss) income | Successor [Member] | (245,719) | ||||
Ending Balance, Shares (Successor [Member]) at Dec. 31, 2015 | 100,001 | ||||
Ending Balance, Value (Successor [Member]) at Dec. 31, 2015 | 1,543,995 | $ 100 | 2,070,497 | (280,883) | (245,719) |
Beginning Balance, Shares (Successor [Member]) at Jul. 01, 2015 | 100,000 | ||||
Beginning Balance, Value (Successor [Member]) at Jul. 01, 2015 | 2,067,665 | $ 100 | 2,067,565 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | Successor [Member] | (280,883) | (280,883) | |||
Other comprehensive (loss) income | Successor [Member] | (245,719) | (245,719) | |||
Share-based compensation activity, Shares | Successor [Member] | 1 | ||||
Share-based compensation activity | Successor [Member] | 2,932 | 2,932 | |||
Ending Balance, Shares (Successor [Member]) at Dec. 31, 2015 | 100,001 | ||||
Ending Balance, Value (Successor [Member]) at Dec. 31, 2015 | 1,543,995 | $ 100 | 2,070,497 | (280,883) | (245,719) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net (loss) income | Successor [Member] | (1,553,873) | (1,553,873) | |||
Other comprehensive (loss) income | Successor [Member] | 169,785 | 169,785 | |||
Share-based compensation activity, Shares | Successor [Member] | 257 | ||||
Share-based compensation activity | Successor [Member] | 6,115 | 6,115 | |||
Ending Balance, Shares (Successor [Member]) at Dec. 31, 2016 | 100,258 | ||||
Ending Balance, Value (Successor [Member]) at Dec. 31, 2016 | $ 166,022 | $ 100 | $ 2,076,612 | $ (1,834,756) | $ (75,934) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||
Provision for inventory obsolescence | $ 2,200,000 | $ 0 | $ 1,700,000 | $ 29,300,000 |
Successor [Member] | ||||
Cash flows from operating activities: | ||||
Net (loss) income | (280,883,000) | (1,553,873,000) | ||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||
Loss (income) from discontinued operations | (11,608,000) | 19,994,000 | ||
Amortization of debt (premiums) discounts and financing costs | 181,000 | (4,570,000) | ||
Depreciation and amortization | 85,364,000 | 172,383,000 | ||
Provision for losses on accounts receivable | 32,279,000 | 77,883,000 | ||
Provision for inventory obsolescence | 2,156,000 | 1,731,000 | ||
Foreign currency transaction (gains) losses, net | 99,737,000 | (76,615,000) | ||
Impairment charges, restructuring charges and losses on disposal of fixed assets | 13,354,000 | 1,352,667,000 | ||
Deferred income tax (benefit) provision | (2,513,000) | (3,183,000) | ||
Share-based compensation expense | 2,923,000 | 6,076,000 | ||
Reorganization items in connection with emergence from Chapter 11 | 0 | 0 | ||
Fresh start adjustments, net | 0 | 0 | ||
Other, net | (3,829,000) | 1,898,000 | ||
Changes in assets and liabilities: | ||||
Accounts receivable | (38,756,000) | (58,951,000) | ||
Prepaid value-added taxes | 9,311,000 | 15,894,000 | ||
Handset and accessory inventory | 13,940,000 | 17,273,000 | ||
Prepaid expenses and other | (21,027,000) | 8,903,000 | ||
Other long-term assets | 20,981,000 | (41,447,000) | ||
Accrued value-added taxes | (285,000) | (7,565,000) | ||
Other long-term liabilities | 23,876,000 | 41,851,000 | ||
Accounts payable, accrued expenses and other | (46,674,000) | (15,554,000) | ||
Total operating cash used in continuing operations | (101,473,000) | (45,205,000) | ||
Total operating cash provided by (used in) discontinued operations | 22,988,000 | 0 | ||
Net cash used in operating activities | (78,485,000) | (45,205,000) | ||
Cash flows from investing activities: | ||||
Capital expenditures | (76,630,000) | (61,291,000) | ||
Purchases of investments | (558,883,000) | (1,075,119,000) | ||
Proceeds from sales of investments | 575,838,000 | 1,102,492,000 | ||
Purchase of licenses | (4,018,000) | (16,936,000) | ||
Costs related to sale of towers, net | 0 | 0 | ||
Change in restricted cash and other deposits | (51,235,000) | 67,894,000 | ||
Proceeds from sale of corporate aircraft | 0 | 0 | ||
Other, net | 4,697,000 | (2,243,000) | ||
Total investing cash provided by (used in) continuing operations | (110,231,000) | 14,797,000 | ||
Total investing cash provided by (used in) discontinued operations | 109,255,000 | 39,653,000 | ||
Net cash provided by (used in) investing activities | (976,000) | 54,450,000 | ||
Cash flows from financing activities: | ||||
Repayments under equipment financing facility and local bank loans | (24,452,000) | (90,843,000) | ||
Repayments under capital leases and other | (616,000) | (2,161,000) | ||
Claims paid to senior noteholders | 0 | 0 | ||
Net proceeds from debtor-in-possession loan | 0 | 0 | ||
Repayment of debtor-in-possession loan | 0 | 0 | ||
Borrowings under equipment financing facilities and other | 0 | 0 | ||
Other, net | 0 | 0 | ||
Total financing cash used in continuing operations | (25,068,000) | (93,004,000) | ||
Total financing cash used in discontinued operations | 0 | 0 | ||
Net cash used in financing activities | (25,068,000) | (93,004,000) | ||
Effect of exchange rate changes on cash and cash equivalents | 916,000 | (1,045,000) | ||
Change in cash and cash equivalents related to discontinued operations | 22,662,000 | 0 | ||
Net (decrease) increase in cash and cash equivalents | (80,951,000) | (84,804,000) | ||
Cash and cash equivalents, beginning of period | 423,135,000 | 342,184,000 | ||
Cash and cash equivalents, end of period | 342,184,000 | 423,135,000 | $ 257,380,000 | |
Predecessor [Member] | ||||
Cash flows from operating activities: | ||||
Net (loss) income | 1,740,515,000 | (1,957,698,000) | ||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||
Loss (income) from discontinued operations | (221,114,000) | 733,027,000 | ||
Amortization of debt (premiums) discounts and financing costs | 18,753,000 | 14,889,000 | ||
Depreciation and amortization | 153,878,000 | 394,061,000 | ||
Provision for losses on accounts receivable | 65,396,000 | 57,418,000 | ||
Provision for inventory obsolescence | 0 | 29,308,000 | ||
Foreign currency transaction (gains) losses, net | 63,948,000 | 51,149,000 | ||
Impairment charges, restructuring charges and losses on disposal of fixed assets | 31,471,000 | 79,929,000 | ||
Deferred income tax (benefit) provision | 905,000 | 2,052,000 | ||
Share-based compensation expense | 5,239,000 | 10,041,000 | ||
Reorganization items in connection with emergence from Chapter 11 | (1,775,787,000) | 54,851,000 | ||
Fresh start adjustments, net | (248,709,000) | 0 | ||
Other, net | (11,083,000) | (9,560,000) | ||
Changes in assets and liabilities: | ||||
Accounts receivable | (35,013,000) | (73,430,000) | ||
Prepaid value-added taxes | 50,564,000 | (72,657,000) | ||
Handset and accessory inventory | 7,513,000 | (32,963,000) | ||
Prepaid expenses and other | (26,688,000) | (18,426,000) | ||
Other long-term assets | 47,253,000 | (136,056,000) | ||
Accrued value-added taxes | (7,941,000) | (1,772,000) | ||
Other long-term liabilities | (32,819,000) | (534,000) | ||
Accounts payable, accrued expenses and other | 18,565,000 | 281,919,000 | ||
Total operating cash used in continuing operations | (155,154,000) | (594,452,000) | ||
Total operating cash provided by (used in) discontinued operations | (99,603,000) | (34,264,000) | ||
Net cash used in operating activities | (254,757,000) | (628,716,000) | ||
Cash flows from investing activities: | ||||
Capital expenditures | (88,485,000) | (326,246,000) | ||
Purchases of investments | (757,714,000) | (1,593,250,000) | ||
Proceeds from sales of investments | 756,546,000 | 2,092,459,000 | ||
Purchase of licenses | (5,391,000) | (31,861,000) | ||
Costs related to sale of towers, net | 0 | (15,517,000) | ||
Change in restricted cash and other deposits | (57,074,000) | (132,080,000) | ||
Proceeds from sale of corporate aircraft | 0 | 32,390,000 | ||
Other, net | 3,501,000 | (782,000) | ||
Total investing cash provided by (used in) continuing operations | (148,617,000) | 25,113,000 | ||
Total investing cash provided by (used in) discontinued operations | 1,176,438,000 | (372,651,000) | ||
Net cash provided by (used in) investing activities | 1,027,821,000 | (347,538,000) | ||
Cash flows from financing activities: | ||||
Repayments under equipment financing facility and local bank loans | (124,000) | (54,067,000) | ||
Repayments under capital leases and other | (1,884,000) | (53,032,000) | ||
Claims paid to senior noteholders | (745,221,000) | 0 | ||
Net proceeds from debtor-in-possession loan | 340,375,000 | 0 | ||
Repayment of debtor-in-possession loan | (340,375,000) | 0 | ||
Borrowings under equipment financing facilities and other | 0 | 14,590,000 | ||
Other, net | (4,291,000) | (396,000) | ||
Total financing cash used in continuing operations | (751,520,000) | (92,905,000) | ||
Total financing cash used in discontinued operations | (26,711,000) | (35,367,000) | ||
Net cash used in financing activities | (778,231,000) | (128,272,000) | ||
Effect of exchange rate changes on cash and cash equivalents | (9,152,000) | (55,657,000) | ||
Change in cash and cash equivalents related to discontinued operations | 103,260,000 | 346,695,000 | ||
Net (decrease) increase in cash and cash equivalents | 88,941,000 | (813,488,000) | ||
Cash and cash equivalents, beginning of period | $ 423,135,000 | 334,194,000 | 1,147,682,000 | |
Cash and cash equivalents, end of period | $ 423,135,000 | $ 334,194,000 |
Summary of Operations
Summary of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Operations | Summary of Operations Unless the context requires otherwise, “NII Holdings, Inc.,” “NII Holdings,” “we,” “our,” “us” and “the Company” refer to the combined businesses of NII Holdings, Inc. and its consolidated subsidiaries. We refer to our wholly-owned Brazilian operating company, Nextel Telecomunicações Ltda., as Nextel Brazil. Our consolidated results from continuing operations in this annual report on Form 10-K include the results of operations of Nextel Brazil and our corporate headquarters. We provide wireless communication services under the Nextel TM brand in Brazil with our principal operations located in major urban and suburban centers with high population densities and related transportation corridors of that country where we believe there is a concentration of Brazil's business users and economic activity, including primarily Rio de Janeiro and São Paulo. In the second half of 2013, Nextel Brazil commercially launched services on its wideband code division multiple access, or WCDMA, network in São Paulo, Rio de Janeiro and surrounding areas and extended those services to other areas in Brazil by expanding the coverage of its network and utilizing roaming services and network sharing arrangements pursuant to agreements that it reached with another network operator in Brazil. Our WCDMA network enables us to offer a wide range of products and services supported by that technology, including data services provided at substantially higher speeds than can be delivered on our legacy integrated digital enhanced network, or iDEN. Prior to the deployment of our WCDMA network, our services were primarily targeted to meet the needs of business customers. With the deployment of our WCDMA network in Brazil, our target market has shifted to individual consumers who use our services to meet both professional and personal needs. Our target subscribers generally exhibit above average usage, revenue and loyalty characteristics. We believe our target market is attracted to the services and pricing plans we offer, as well as the quality of and data speeds provided by our WCDMA network. We also offer long-term evolution, or LTE, services in Rio de Janeiro, and starting in December 2016, in São Paulo, and we continue to provide services on our legacy iDEN network throughout various regions in Brazil. Our transition to standards-based technologies such as WCDMA also gives us more flexibility to offer customers the option of purchasing services by acquiring the subscriber identity module, or SIM, cards from us separately, and by providing the customer with the option to use the SIM cards in one or more devices that they acquire from us or from other sources. The services we currently offer include: • mobile telephone voice service; • wireless data services, including text messaging services, mobile internet services and email services; • push-to-talk services, including Direct Connect ® , Prip and International Direct Connect ® services, which allow subscribers to talk to each other instantly; • other value-added services, including location-based services, which include the use of Global Positioning System, or GPS, technologies; digital media services; and a wide ranging set of applications available via our content management system, as well as the Android TM open application market; • business solutions, such as security, work force management, logistics support and other applications that help our business subscribers improve their productivity; and • voice and data roaming services outside of our coverage areas. Revision of Prior Period Financial Statements. In connection with the preparation of our condensed consolidated financial statements for the three months ended March 31, 2016, we determined that an error existed in our previously issued financial statements. Specifically, selling, general and administrative expenses for the six months ended December 31, 2015 were understated by $6.9 million as the result of a failure to properly accrue expenses for services Nextel Brazil received under a management consulting services arrangement. We evaluated this error under the SEC's authoritative guidance on materiality and the quantification of the effect of prior period misstatements on financial statements, and we determined that the impact of this error on our prior period consolidated financial statements is immaterial. However, since the correction of this error in the first quarter of 2016 would have been material to our results of operations for the three months ended March 31, 2016, we revised our prior period financial statements herein to correct this error. As a result of the correction of this error, as of December 31, 2015, accrued expenses and other increased by $6.8 million , accumulated deficit increased by $6.9 million and accumulated other comprehensive loss decreased by $0.1 million . For the six months ended December 31, 2015, this error resulted in a $6.9 million increase to selling, general and administrative expenses, operating loss, loss from continuing operations before reorganization items and income tax benefit, net loss from continuing operations and net loss. In addition, for the six months ended December 31, 2015, the correction of this error resulted in a $0.07 increase in both net loss from continuing operations per basic and diluted common share and net loss per basic and diluted common share. This error did not relate to any periods prior to the six months ended December 31, 2015. Going Concern. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These consolidated financial statements do not include any adjustments that might result from the occurrence of the uncertainties described below. Over the course of the last year, we have implemented changes in our business to better align our organization and costs with our available sources of funding, as well as to respond to the impact of the current and expected economic and competitive conditions in Brazil. These changes have included changes to our leadership team; improvements to our operations; and the implementation of cost savings measures, spending reductions and headcount reductions. As a result of these changes, we reduced the amount of cash used in our operating activities for the year ended December 31, 2016 compared to the combined period ended December 31, 2015. Our current sources of funding include $331.2 million of cash and short-term investments, $163.4 million in cash held in escrow to secure our indemnification obligations in connection with the sale of Nextel Mexico, and $87.4 million in cash pledged as collateral to secure certain performance bonds relating to our obligations to deploy our WCDMA spectrum in Brazil. Based on the weak economy and challenging competitive environment in Brazil that we anticipate will continue, as well as the continued decline of our iDEN business, we expect that our cash flow from operations will be negative in 2017. In addition, we expect that our capital expenditures for 2017 will be at a similar level as 2016. During 2017, we are also required to pay an estimated $225.0 million for principal and interest in connection with our debt service obligations, including capital leases. As a result, we believe our current sources of funding may not be adequate to fund our business beyond the first quarter of 2018, and that we will need to obtain debt service relief from our lenders or to raise incremental capital to fund our business plan. Furthermore, if the ultimate amount recovered from our cash held in escrow or our cash pledged to secure performance bonds is not fully available to us or is delayed for a significant amount of time, we would need to obtain additional funding within the next six to twelve months and significantly reduce our planned spending to further preserve our liquidity. If we cannot reach an agreement with our lenders to modify the terms of our loans, obtain suitable financing if and when it is required, or obtain access to a significant portion of the escrowed funds as anticipated in our business plan, our results of operations and liquidity would be negatively impacted, and we may be unable to settle our obligations as they come due. In connection with the agreements governing Nextel Brazil's local bank loans, we are required to meet a net debt financial covenant semiannually. In August 2016, Nextel Brazil secured waivers from the lenders of its local bank loans related to this financial covenant for the June 30, 2016 measurement date. In February 2017, Nextel Brazil secured additional waivers from the lenders of these loans related to this financial covenant as of December 31, 2016. The waivers also provide for a "covenant holiday" inclusive of the June 30, 2017 testing period, during which time no compliance will be required with respect to the net debt financial covenant. The next measurement date for this financial covenant will be December 31, 2017. Likewise, in connection with the agreement and related amendments governing Nextel Brazil's equipment financing facility, we are required to meet certain financial covenants semiannually beginning on December 31, 2017. Based on our current outlook, which reflects significant uncertainty about the economic and competitive conditions in Brazil that are currently impacting our ability to increase our revenues and generate profitability, we believe it is unlikely that we will satisfy the applicable financial covenants included in both of Nextel Brazil's local bank loans and in its equipment financing facility as of the next measurement date at December 31, 2017. If we are unable to negotiate amendments to the existing loan agreements or secure waivers from the lenders, we could be in default. If a default occurs, the lenders could require us to repay the amounts outstanding under these arrangements. In addition, these loan agreements contain cross-acceleration provisions. As of December 31, 2016, we had $237.4 million principal amount outstanding under Nextel Brazil's local bank loans and $293.6 million principal amount outstanding under Nextel Brazil's equipment financing facility. See Note 7 for more information. In addition, in December 2015, Nextel Brazil participated in a spectrum auction and was the successful bidder for 30 MHz of spectrum in the 1.8 GHz band for 455 million Brazilian reais, or approximately $116.7 million based on foreign currency exchange rates at the time. In July 2016, Nextel Brazil paid 45.5 million Brazilian reais, or approximately $14.0 million based on foreign currency exchange rates at the time, in connection with the signing of this license agreement. Nextel Brazil elected to accept the government-provided spectrum financing for the remaining amount due under this spectrum financing. In connection with the foregoing, we are in the process of securing waivers from the lender of Nextel Brazil's equipment financing facility to permit Nextel Brazil to incur and maintain this spectrum financing. In addition, we have requested waivers of an event of default that resulted from a failure to timely notify this lender of a permitted merger that occurred between two guarantors in Brazil. As a result of either of these events of default, the lender of Nextel Brazil's equipment financing facility could provide notice to declare the amounts outstanding under this facility due and payable. If we cannot obtain waivers for the existing events of default under Nextel Brazil's equipment financing facility and for the applicable financial covenants we are required to meet as of the December 31, 2017 measurement date, modify the repayment terms of our loans, obtain suitable financing if and when it is required, or obtain access to a significant portion of the escrowed funds as anticipated in our business plan, our results of operations and liquidity would be negatively impacted, and we may be unable to settle our obligations as they come due. The combination of these conditions continues to raise substantial doubt about our ability to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Reorganization Accounting. In accordance with the requirements of reorganization accounting, NII Holdings adopted the provisions of fresh start accounting as of June 30, 2015 and became a new entity for financial reporting purposes. References to the "Successor Company" relate to NII Holdings on or subsequent to June 30, 2015. References to the "Predecessor Company" relate to NII Holdings prior to June 30, 2015. See Note 3 for more information regarding the implementation of fresh start accounting. Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or the U.S., requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results to be reported in future periods could differ from our estimates. Principles of Consolidation. The consolidated financial statements include the accounts of NII Holdings and our subsidiaries. Our decision to consolidate an entity is based on our control of the entity through direct and indirect majority interest in the entity. We eliminate all significant intercompany transactions, including intercompany profits and losses, in consolidation. Concentrations of Risk. Substantially all of our revenues are generated from our operations located in Brazil. Political, financial and economic developments in Brazil could impact the recoverability of our assets. Regulatory entities in Brazil regulate the licensing, construction, acquisition, ownership and operation of our networks, and certain other aspects of our business, including some of the rates we charge our subscribers. Changes in the current telecommunications statutes or regulations in Brazil could adversely affect our business. In addition, as of December 31, 2016, 71% of our total assets were owned by Nextel Brazil. Political, financial and economic developments in Brazil could impact the recoverability of our assets. Financial instruments that potentially subject us to significant amounts of credit risk consist of cash, cash equivalents, short-term investments and accounts receivable. Our cash and cash equivalents are deposited with high-quality financial institutions. At times, we maintain cash balances in excess of Federal Deposit Insurance Corporation (or the foreign country equivalent institution) limits. Our short-term investments are composed of investments in U.S. treasury securities, investments in corporate bonds and certain investments made by Nextel Brazil. See Note 8 for further information. Our accounts receivable are generally unsecured. We routinely assess the credit worthiness of our subscribers and maintain allowances for probable losses, where necessary. Foreign Currency. We translate Nextel Brazil's results of operations from Brazilian reais to U.S. dollars using average exchange rates during the relevant period, while we translate assets and liabilities at the exchange rate in effect at the reporting date. We translate equity balances at historical rates. We report the resulting gains or losses from translating foreign currency financial statements as other comprehensive income or loss. In general, monetary assets and liabilities held by Nextel Brazil that are denominated in U.S. dollars give rise to realized and unrealized foreign currency transaction gains and losses, which we record in our consolidated statement of comprehensive (loss) income as foreign currency transaction losses, net. We report the effects of changes in exchange rates associated with certain U.S. dollar-denominated intercompany loans and advances to our foreign subsidiaries that are of a long-term investment nature as other comprehensive income or loss in our consolidated financial statements. We have determined that certain U.S. dollar-denominated intercompany loans and advances to Nextel Brazil are of a long-term investment nature. Cash and Cash Equivalents. We consider all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents, except for certain certificates of deposit in Brazil that are redeemable on demand. We classify these certificates of deposit as short-term investments. Cash equivalents primarily consist of money market funds and other similarly structured funds. Short-Term Investments. We classify investments in debt securities as available-for-sale as of the balance sheet date and report them at fair value. We record unrealized gains and losses, net of income tax, as other comprehensive income or loss. We report realized gains or losses, as determined on a specific identification basis, and other-than-temporary declines in value, if any, in net other expense in our consolidated statement of comprehensive (loss) income. We assess declines in the value of individual investments to determine whether the decline is other-than-temporary and thus the investment is impaired. We make these assessments by considering available evidence, including changes in general market conditions, specific industry and individual company data, the length of time and the extent to which the market value has been less than cost, the financial condition and near-term prospects of the individual company and our intent and ability to hold the investment. As of December 31, 2016, the time deposits we held were not material. As of December 31, 2015, we had $9.3 million in time deposits. See Note 8 for additional information. Handset and Accessory Inventory. We record handsets and accessories at the lower of cost or their net realizable value. We determine cost by the weighted average costing method. We expense handset costs at the time of sale and classify such costs in cost of handsets and accessories. Inventory cost includes amounts associated with non-income based taxes. We analyze the net realizable value of handset and accessory inventory on a periodic basis. This analysis includes an assessment of the obsolescence of individual devices, our sales forecasts and other factors. For the year ended December 31, 2016, we recorded losses related to inventory obsolescence of $1.7 million . In addition, for the six months ended December 31, 2015 and for the year ended December 31, 2014, we recorded losses related to inventory obsolescence of $2.2 million and $29.3 million , respectively. We did not record any losses related to inventory obsolescence during the six months ended June 30, 2015. Property, Plant and Equipment. We record property, plant and equipment, including improvements that extend useful lives or enhance functionality, at cost, while we charge maintenance and repairs to expense as incurred. We capitalize internal and external costs incurred to develop internal-use software, which consist primarily of costs related to configuration, interfaces, installation and testing. We also capitalize internal and external costs incurred to develop specified upgrades and enhancements if they result in significant additional functionalities for our existing software. We expense all costs related to evaluation of software needs, data conversion, training, maintenance and other post-implementation operating activities. We calculate depreciation using the straight-line method based on estimated useful lives ranging from 3 to 30 years for network equipment, communication towers and network software and 3 to 10 years for software, office equipment, furniture and fixtures, and other, which includes non-network internal use software. We include depreciation expense on our capital leases in accumulated depreciation. We amortize leasehold improvements over the shorter of the lease terms or the useful lives of the improvements. Construction in progress includes internal and external labor, materials, transmission and related equipment, engineering, site development, interest and other costs relating to the construction and development of our wireless network. We do not depreciate assets under construction until they are ready for their intended use. We capitalize interest and other costs, including labor and software upgrades, which are applicable to the construction of, and significant improvements that enhance functionality to, our network equipment. As of June 30, 2015, in connection with the implementation of fresh start accounting, we adjusted our property, plant and equipment to its estimated fair value and revised the depreciable lives. We will continue to periodically review the depreciation method, useful lives and estimated salvage value of our property, plant and equipment and revise those estimates if current estimates are significantly different from previous estimates. Asset Retirement Obligations. We record an asset retirement obligation, or ARO, and an associated asset retirement cost, or ARC, when we have a legal obligation in connection with the retirement of tangible long-lived assets. Our obligations arise from certain of our leases and relate primarily to the cost of removing our communication towers and network equipment from leased sites. We recognize an ARO, and the associated ARC, in the period in which it is incurred at fair value computed using discounted cash flow techniques. The liability is then accreted over time until the obligation is settled and the ARC is depreciated over the useful life of the related assets. We make adjustments for changes to either the timing or amount of the estimated future settlement obligation in the period incurred. We recognize increases in the present value of the AROs as an additional liability and add this amount to the carrying amount of the associated ARC. We record decreases as a reduction in both the recorded liability and the carrying amount of the associated ARC. As of June 30, 2015, in connection with the implementation of fresh start accounting, we adjusted our AROs to their estimated fair value. As of December 31, 2016 and 2015 , our asset retirement obligations were as follows (in thousands): Balance, January 1, 2015 — Predecessor Company 19,177 New asset retirement obligations 350 Accretion 1,321 Settlement of asset retirement obligations (168 ) Foreign currency translation and other (2,011 ) Balance, June 30, 2015 — Predecessor Company 18,669 Fresh start adjustments 5,024 Balance, July 1, 2015 — Successor Company 23,693 New asset retirement obligations 547 Accretion 1,688 Settlement of asset retirement obligations (1,337 ) Foreign currency translation and other (4,949 ) Balance, December 31, 2015 — Successor Company 19,642 New asset retirement obligations 198 Change in assumptions (1,619 ) Accretion 2,552 Settlement of asset retirement obligations (441 ) Foreign currency translation and other 7,274 Balance, December 31, 2016 — Successor Company $ 27,606 Derivative Financial Instruments. We occasionally enter into derivative transactions for hedging or risk management purposes. We have not and will not enter into any derivative transactions for speculative or profit generating purposes. See Note 8 for additional information. Valuation of Long-Lived Assets. We review long-lived assets such as property, plant and equipment and identifiable intangible assets with definite useful lives, which include our telecommunications licenses, for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the total of the expected undiscounted future cash flows of the asset or asset group is less than the carrying amount of the asset, we recognize a loss, if any, for the difference between the fair value and carrying value of the asset. Intangible Assets. Prior to our emergence from Chapter 11, intangible assets primarily consisted of our telecommunications licenses. We amortize our intangible assets using the straight-line method over the estimated benefit period. As a result of the implementation of fresh start accounting in connection with our emergence from Chapter 11, we recorded our intangible assets, which consisted of our telecommunications licenses, our exclusive right to use the Nextel tradename in Brazil and our customer relationships, at their estimated fair values. We calculate amortization on our licenses using the straight-line method based on an estimated useful life of 26 to 30 years. We calculate amortization on our customer relationships using the straight-line method based on an estimated useful life of 4 years. In Brazil, licenses are customarily issued conditionally for specified periods of time ranging from 10 to 40 years, including renewals. In addition, the wireless telecommunications industry is experiencing significant technological change, and the commercial life of any particular technology is difficult to predict. In light of these uncertainties, we classify our licenses as definite lived intangible assets. In connection with the implementation of fresh start accounting, we revised the remaining estimated useful lives of our licenses to include renewal periods in cases where it is probable that a renewal will occur. Revenue Recognition. Operating revenues primarily consist of wireless service revenues and revenues generated from the sale of handsets and accessories. We present our operating revenues net of value-added taxes, but we include certain revenue-based taxes that are our primary obligation. Service revenues primarily consist of fixed monthly access charges. Other components of service revenue include revenues from calling party pays programs, where applicable, variable charges for airtime usage in excess of plan minutes, long-distance charges, international roaming revenues derived from calls placed by our subscribers on other carriers’ networks and revenues generated from broadband data services we provide on our WCDMA network, net of credits and adjustments for service discounts and value-added taxes. We recognize excess usage, local, long distance and calling party pays revenue at contractual rates per minute as minutes are used. We record cash received in excess of revenues earned as deferred revenues. We recognize service revenue as service is provided. We recognize handset revenue when title and risk of loss passes to the customer. Other revenues primarily include amounts generated from our handset maintenance programs, roaming revenues generated from other companies’ subscribers that roam on our networks and co-location rental revenues from third party tenants that rent space on our towers. We recognize revenue generated from our handset maintenance programs on a monthly basis at fixed amounts over the service period. We recognize roaming revenues at contractual rates per minute as minutes are used. We recognize co-location revenues from third party tenants on a monthly basis based on the terms set by the underlying agreements. Revenue-Based Taxes. We record revenue-based taxes and other excise taxes on a gross basis as a component of both service and other revenues and selling, general and administrative expenses in our consolidated financial statements. For the year ended December 31, 2016 , we recognized $46.9 million in revenue-based taxes and other excise taxes. For the six months ended December 31, 2015 and the six months ended June 30, 2015, we recognized $30.9 million and $39.0 million in revenue-based taxes and other excise taxes, respectively. For the year ended December 31, 2014, we recognized $101.0 million in revenue-based taxes and other excise taxes. Accounts Receivable. Accounts receivable represents amounts due from subscribers, net of an allowance for doubtful accounts, and includes amounts that have been billed to customers and amounts that have not yet been billed. Trade accounts receivable consists of fixed monthly charges, as well as charges for excess and roaming minutes used in arrears. Allowance for Doubtful Accounts. We establish an allowance for doubtful accounts receivable sufficient to cover probable and reasonably estimated losses. We estimate this allowance based on historical experience, aging of accounts receivable and recent collections trends. While we believe that the estimates we use are reasonable, actual results could differ from those estimates. Subscriber Related Direct Costs. We recognize all costs of handset sales when title and risk of loss passes upon delivery of the handset to the subscriber. Advertising Costs. We expense costs related to advertising and other promotional expenditures as incurred. Advertising costs totaled $30.9 million for the year ended December 31, 2016. We recognized $21.6 million in advertising costs during the six months ended December 31, 2015 and $28.7 million during the six months ended June 30, 2015, respectively. We recognized $88.7 million in advertising costs during the year ended December 31, 2014. Share-Based Compensation. We measure and recognize compensation expense for all share-based compensation awards based on estimated fair values. We account for share-based awards exchanged for employee services in accordance with the authoritative guidance for stock compensation. Under that guidance, share-based compensation expense is measured at the grant date, based on the estimated fair value of the award when settled in shares, and is recognized over the employee's requisite service period. Compensation expense is amortized on a straight-line basis over the requisite service period for the entire award, which is generally the maximum vesting period of the award. See Note 12 for more information. Net (Loss) Income Per Common Share, Basic and Diluted. Basic net (loss) income per common share is computed by dividing adjusted net (loss) income attributable to common shares by the weighted average number of common shares outstanding for the period. Diluted net (loss) income per common share reflects the potential dilution of securities that could participate in our earnings, but not securities that are antidilutive, including stock options with an exercise price greater than the average market price of our common stock. Our unvested restricted stock awards, or RSAs, contain non-forfeitable rights to dividends, whether paid or unpaid. As a result, our RSAs are considered participating securities because their holders have the right to participate in earnings with common stockholders. We use the two-class method to allocate net income between common shares and other participating securities. As presented for the year ended December 31, 2016, we did not include 3.5 million stock options and 0.8 million in restricted common shares in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. As presented for the six months ended December 31, 2015 and the six months ended June 30, 2015, we did not include 2.2 million and 4.8 million stock options, respectively, in our calculation of diluted net (loss) income from continuing operations per common share because their effect would have been antidilutive. In addition, for the six months ended December 31, 2015, we did not include an immaterial amount of restricted common shares in our calculation of diluted net (loss) income from continuing operations per common share because their effect would have been antidilutive. As presented for the year ended December 31, 2014, we did not include 5.4 million stock options and 0.9 million in restricted common shares in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive to our net loss from continuing operations per common share for that period. Income Taxes. We account for income taxes using the asset and liability method, under which we recognize deferred income taxes for the tax consequences attributable to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities, as well as for tax loss carryforwards and tax credit carryforwards. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. We recognize the effect on deferred taxes of a change in tax rates in income in the period that includes the enactment date. We recognize a valuation allowance on deferred tax assets unless it is determined that it is “more-likely-than-not” that the asset will be realized. Reclassifications. We have reclassified some prior period amounts in our consolidated financial statements to conform to our current presentation. New Accounting Pronouncements. In November 2016, the Financial Accounting Standards Board, or the FASB, issued Accounting Standard Update, or ASU, No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which provides guidance regarding cash flow statement classification and presentation of changes in restricted cash. The new standard will be effective for interim and annual reporting periods beginning on January 1, 2018, with early adoption permitted. The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile this total to amounts on the consolidated balance sheet and disclose the nature of the restrictions. We are currently evaluating the timing of adoption, as well as the effect ASU No. 2016-18 will have on our consolidated statement of cash flows. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," which replaces existing leasing rules with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. ASU No. 2016-02 will require lessees to recognize most leases on their balance sheet as liabilities, with corresponding "right-of-use" assets, and is effective for interim and annual reporting periods beginning after December 15, 2018, subject to early adoption. The new standard allows us to make an accounting policy election not to recognize lease assets and liabilities on the balance sheet for leases with a term of 12 months or less. The accounting applied by a lessor is largely unchanged from previous guidance. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply. We are currently evaluating the timing of adoption, as well as the effect ASU No. 2016-02 will have on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers," which will provide us with a single revenue recognition model for recognizing revenue from contracts with customers and significantly expand the disclosure requirements for revenue arrangements. The new standard, as amended, will be effective for interim and annual reporting periods beginning on January 1, 2018, at which point we plan to adopt the standard. The two permitted transition methods under the new standard are the full retrospective method, in which the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application, with disclosure of results under the new and old standards for the first year of adoption. We are in the process of evaluating the available adoption methods. |
Emergence From Chapter 11 Proce
Emergence From Chapter 11 Proceedings and Fresh Start Accounting | 12 Months Ended |
Dec. 31, 2016 | |
Reorganizations [Abstract] | |
Emergence From Chapter 11 Proceedings and Fresh Start Accounting | Emergence from Chapter 11 Proceedings and Fresh Start Accounting On September 15, 2014, we and eight of our U.S. and Luxembourg-domiciled subsidiaries, including NII Capital Corp. and NII International Telecom, S.C.A., or NIIT, filed voluntary petitions seeking relief under Chapter 11 of Title 11 of the United States Bankruptcy Code, which we refer to as Chapter 11, in the United States Bankruptcy Court for the Southern District of New York, which we refer to as the Bankruptcy Court. In addition, subsequent to September 15, 2014, five additional subsidiaries of NII Holdings, Inc. filed voluntary petitions seeking relief under Chapter 11 in the Bankruptcy Court. We refer to the companies that filed voluntary petitions seeking relief under Chapter 11 collectively as the Debtors. Nextel Brazil and our previous other operating subsidiaries in Latin America were not Debtors in these Chapter 11 cases. On June 19, 2015, the Bankruptcy Court entered an order approving and confirming the First Amended Joint Plan of Reorganization Proposed by the Plan Debtors and the Official Committee of Unsecured Creditors, dated April 20, 2015. We refer to this plan, as amended, as the Plan of Reorganization. On June 26, 2015, the conditions of the Bankruptcy Court's order and the Plan of Reorganization were satisfied, the Plan of Reorganization became effective, and we and the other Debtors emerged from the Chapter 11 proceedings. We refer to June 26, 2015 as the Emergence Date. The significant transactions that occurred on the Emergence Date in connection with the effectiveness of our Plan of Reorganization included the following: • NII Holdings canceled all shares of its common stock, preferred stock and other equity interests that existed prior to June 26, 2015; • NII Holdings amended and restated its Bylaws and filed an Amended and Restated Certificate of Incorporation authorizing the Company to issue up to 140,000,000 shares of common stock, par value $0.001 per share, and up to 10,000,000 shares of undesignated preferred stock, par value $0.001 per share; • NII Holdings issued 99,999,992 shares of new common stock, with a per share value of $20.68 , and distributed cash of $776.3 million to the holders of claims and service providers in comprehensive settlement of numerous integrated claims and disputes approved by the Bankruptcy Court in connection with the confirmation of the Plan of Reorganization; • In accordance with the Plan of Reorganization, all of the obligations of the Debtors with respect to the following indebtedness were canceled: • $700.0 million aggregate principal amount of 7.875% senior notes due 2019 issued by NIIT pursuant to an indenture, dated as of May 23, 2013, among NIIT (as issuer), the Company (as guarantor), and Wilmington Trust National Association (as trustee) and all amendments, supplements or modifications thereto and extensions thereof; • $900.0 million aggregate principal amount of 11.375% senior notes due 2019 issued by NIIT pursuant to an indenture, dated as of February 19, 2013, among NIIT (as issuer), the Company (as guarantor), and Wilmington Trust National Association (as trustee) and all amendments, supplements or modifications thereto and extensions thereof; • $1.45 billion aggregate principal amount of 7.625% senior notes due 2021 issued by NII Capital Corp. pursuant to an indenture, dated as of March 29, 2011, among NII Capital Corp. (as issuer), each of the guarantors party thereto and Wilmington Savings Fund Society, FSB (as successor trustee) and all amendments, supplements or modifications thereto and extensions thereof; • $500.0 million aggregate principal amount of 8.875% senior notes due 2019 issued by NII Capital Corp. pursuant to an indenture, dated as of December 15, 2009, among NII Capital Corp. (as issuer), each of the guarantors party thereto and U.S. Bank National Association (as successor trustee) and all amendments, supplements or modifications thereto and extensions thereof; and • $800.0 million aggregate principal amount of 10.0% senior notes due 2016 issued by NII Capital Corp. pursuant to an indenture, dated as of August 18, 2009, among NII Capital Corp. (as issuer), each of the guarantors party thereto and Wilmington Savings Fund Society, FSB (as successor trustee) and all amendments, supplements or modifications thereto and extensions thereof. Pursuant to our Plan of Reorganization, we entered into a registration rights agreement to provide registration rights to parties that, together with their affiliates, received upon emergence 10% or more of the issued and outstanding common stock of NII Holdings in connection with the Plan of Reorganization. In satisfaction of this registration rights agreement, on July 14, 2015, we filed a Registration Statement on Form S-1 under the Securities Act of 1933 to register our common stock that may be offered for sale from time to time by certain selling stockholders. On July 21, 2015, this Form S-1 was declared effective. We are not selling any common stock under the related prospectus and will not receive any proceeds from the sale of common stock by the selling stockholders. In connection with our emergence from Chapter 11, we were required to apply the provisions of fresh start accounting to our financial statements because: (i) the holders of existing voting shares of NII Holdings prior to its emergence from the Chapter 11 proceedings received less than 50% of the voting shares of NII Holdings outstanding following its emergence from the Chapter 11 proceedings; and (ii) the reorganization value of our assets immediately prior to confirmation of the Plan of Reorganization was less than the post-petition liabilities and allowed claims. Because our results of operations during the period from June 26, 2015 to June 30, 2015 were not material, we applied fresh start accounting to our consolidated financial statements as of the close of business on June 30, 2015. Under the principles of fresh start accounting, a new reporting entity is considered to be created, and as a result, we allocated the reorganization value of NII Holdings as of June 30, 2015 to our individual assets based on their estimated fair values at the date we applied fresh start accounting. The total value of the cash and shares of common stock distributed under the Plan of Reorganization was $2.813 billion . We refer to this value as the Plan Distributable Value. The Plan Distributable Value was comprised of $745.2 million of cash paid to the holders of our NIIT and NII Capital Corp. senior notes and $2,067.7 million of new common stock. We also distributed an additional $2.8 million to other creditors. We determined the equity value of the Successor Company to be approximately $2,067.7 million , which represents the $2.813 billion Plan Distributable Value less $745.2 million in cash distributions. The following condensed consolidated balance sheet reconciles the balance sheet of the Predecessor Company immediately prior to our emergence from Chapter 11 to the balance sheet of the Successor Company immediately subsequent to our emergence from Chapter 11. The adjustments set forth in the condensed consolidated balance sheet presented below reflect the consummation of the Plan of Reorganization, which are reflected in the "Reorganization Adjustments" column, and the fair value adjustments required by the implementation of fresh start accounting, which are reflected in the "Fresh Start Adjustments" column. The information presented below reflects changes in the estimated fair values of certain assets and liabilities that occurred in the second half of 2015 as we finalized fresh start accounting. This condensed consolidated balance sheet should be read in conjunction with the explanatory notes following the table. The following is a reconciliation of the Successor Company's equity value to its reorganization value as of June 30, 2015 (in thousands): Fair value of Successor Company's common stock $ 2,067,665 Fair value of debt 774,616 Fair value of other liabilities 638,916 Reorganization value of Successor Company's assets $ 3,481,197 Predecessor Company Reorganization Adjustments Fresh Start Adjustments Successor Company June 30, 2015 July 1, 2015 (in thousands) ASSETS Current assets Cash and cash equivalents $ 1,199,441 $ (776,306 ) (a) $ — $ 423,135 Short-term investments 97,395 — — 97,395 Accounts receivable, net 174,649 — — 174,649 Handset and accessory inventory 49,835 — — 49,835 Prepaid expenses and other 159,346 — (19,494 ) (d) 139,852 Assets related to discontinued operations 242,487 — — 242,487 Total current assets 1,923,153 (776,306 ) (19,494 ) 1,127,353 Property, plant and equipment, net 1,079,947 — (376,519 ) (e) 703,428 Intangible assets, net 571,076 — 562,702 (f) 1,133,778 Other assets 516,235 — (18,739 ) (g) 497,496 Assets related to discontinued operations 32,246 — (13,104 ) (h) 19,142 Total assets $ 4,122,657 $ (776,306 ) $ 134,846 $ 3,481,197 LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY Liabilities not subject to compromise Current liabilities Accounts payable $ 102,317 $ — $ — $ 102,317 Accrued expenses and other 323,480 — (2,677 ) (i) 320,803 Deferred revenues 17,908 — (1,805 ) (j) 16,103 Current portion of long-term debt 667,617 — 2,616 (k) 670,233 Liabilities related to discontinued operations 96,161 — (1,727 ) (h) 94,434 Total current liabilities 1,207,483 — (3,593 ) 1,203,890 Long-term debt 176,738 — (72,355 ) (k) 104,383 Other long-term liabilities 149,632 — (56,541 ) (l) 93,091 Liabilities related to discontinued operations 5,763 — 6,405 (h) 12,168 Total liabilities not subject to compromise 1,539,616 — (126,084 ) 1,413,532 Liabilities subject to compromise 4,591,452 (4,591,452 ) (b) — — Stockholders’ (deficit) equity Undesignated preferred stock - Successor Company — — — — Undesignated preferred stock - Predecessor Company — — — — Common stock - Successor Company — 100 (b) — 100 Common stock - Predecessor Company 172 (172 ) (c) — — Paid-in capital - Successor Company — 2,067,565 (b) — 2,067,565 Paid-in capital - Predecessor Company 1,522,320 (1,522,320 ) (c) — — Accumulated deficit (2,418,560 ) 3,269,973 (c) (851,413 ) (m) — Accumulated other comprehensive loss (1,112,343 ) — 1,112,343 (m) — Total stockholders’ (deficit) equity (2,008,411 ) 3,815,146 260,930 2,067,665 Total liabilities and stockholders’ (deficit) equity $ 4,122,657 $ (776,306 ) $ 134,846 $ 3,481,197 Our condensed consolidated balance sheet as of July 1, 2015 presented above reflects the effect of the following adjustments: (a) Reflects cash payments made in connection with the implementation of the Plan of Reorganization (in thousands): Claims paid to senior noteholders $ 745,221 Payments to other creditors 2,779 Total claims paid 748,000 Reorganization-related professional fees 28,306 Total cash payments $ 776,306 (b) Represents the cancellation of debt and related transactions in connection with the implementation of the Plan of Reorganization on the Emergence Date. In accordance with the Plan of Reorganization, we distributed cash and shares of new common stock to holders of claims. The following table reflects the calculation of the total gain on the settlement of our liabilities subject to compromise (in thousands): Total Predecessor Company liabilities subject to compromise $ 4,591,452 Less: Common stock, Successor (at par) (100 ) Paid-in-capital, Successor (2,067,565 ) Total claims paid (748,000 ) Gain on settlement of liabilities subject to compromise $ 1,775,787 (c) Reflects the cumulative impact of the reorganization adjustments discussed above. Additionally, these adjustments reflect the cancellation of the Predecessor Company's common stock and paid-in capital to accumulated deficit (in thousands): Gain on settlement of liabilities subject to compromise $ 1,775,787 Reorganization-related professional fees (28,306 ) Net gain on reorganization adjustments 1,747,481 Cancellation of Predecessor Company equity 1,522,492 Net impact to accumulated deficit $ 3,269,973 (d) Represents the write-off of unamortized debt issuance costs primarily related to Nextel Brazil's equipment financing facility and local bank loans. (e) Reflects the impact of fresh start adjustments on property, plant and equipment in Nextel Brazil and our corporate segment. We measured the fair value of property, plant and equipment using the cost approach as the primary method. The cost approach is based on the premise that a prudent investor would pay no more for an asset than its replacement or reproduction cost. The cost to replace the asset would include the cost of constructing a similar asset of equivalent utility at prices applicable at the time of the valuation analysis. The replacement or reproduction cost estimates were adjusted by losses in value attributable to physical deterioration, as well as functional and economic obsolescence. The following reflects the impact of fresh start adjustments (in thousands): Consolidated Predecessor Company Fresh Start Adjustments Successor Company Land $ 3,341 $ — $ 3,341 Leasehold improvements 35,515 (20,188 ) 15,327 Network equipment, communication towers and network software 1,819,759 (1,291,712 ) 528,047 Software, office equipment, furniture and fixtures and other 342,210 (261,342 ) 80,868 Less: Accumulated depreciation and amortization (1,207,834 ) 1,207,834 — 992,991 (365,408 ) 627,583 Construction in progress 86,956 (11,111 ) 75,845 $ 1,079,947 $ (376,519 ) $ 703,428 (f) Reflects the impact of fresh start adjustments on our intangible assets (in thousands): Nextel Brazil Predecessor Company Fresh Start Adjustments Successor Company Licenses $ 553,076 $ 513,002 $ 1,066,078 Customer relationships — 29,000 29,000 In Brazil, our spectrum holdings include 20 megahertz, or MHz, of 1.9 gigahertz, or GHz,/2.1 GHz spectrum and 20 MHz of 1.8 GHz spectrum that support our WCDMA network and, in Rio de Janeiro, our LTE network. We also have spectrum holdings in the 800 MHz specialized mobile radio, or SMR, spectrum band that currently can only be used to support our iDEN network. We valued Nextel Brazil's spectrum licenses using both the income approach and the market approach. The resulting value of these licenses was similar to the prices observed for comparable licenses in Brazil in recent guideline transactions. Our income approach used the Greenfield method specifically, whereby we estimated the discounted future cash flows of a hypothetical start-up business, based on certain assumptions, including: (i) forecasted revenues, profit margins, capital expenditures and cash flows attributable to the spectrum for the period from July 1, 2015 to June 1, 2041. This date represents the end of the current term of our spectrum licenses, including renewals solely at our option; and (ii) a discount rate of 16.5% , which is based on an after-tax weighted average cost of capital. We valued our customer relationships using the excess earnings method, which is a form of the income approach, by estimating the discounted future cash flows attributable to existing subscribers. This estimation was based on certain assumptions, including: (i) forecasted revenues and cash flows attributable to the current subscriber base beginning on July 1, 2015; (ii) a churn rate ranging from 1.9% to 2.6% ; and (iii) a discount rate of 16.5% , based on an after-tax weighted average cost of capital. Corporate Predecessor Company Fresh Start Adjustments Successor Company Trade name 18,000 20,700 38,700 Our trade name represents the right to use the Nextel name exclusively in our markets. We valued our trade name using the relief from royalty method, a form of the income approach that estimates the amount a market participant would pay to utilize that trade name, based on certain assumptions, including (i) forecasted revenues attributable to the trade name from July 1, 2015 to June 1, 2041; (ii) a royalty rate of 0.25% of expected revenues determined with regard to comparable market transactions; and (iii) a discount rate of 16.5% , which was based on an after-tax weighted average cost of capital. (g) Represents a $13.5 million decrease in non-income based tax assets to reduce their values to their estimated fair values based on discounted cash flows to reflect the timing of their anticipated realization and a $5.2 million write-off of prepaid rent. (h) Represents the net change in assets and liabilities related to Nextel Argentina as a result of remeasurement to their respective fair values. (i) Represents the write-off of unamortized deferred gains related to the 2013 tower transactions. (j) Represents the revaluation of deferred revenues to the fair value of related future performance obligations. (k) Adjustments to Nextel Brazil's debt balances related to the remeasurement of its equipment financing facility, local bank loans, tower financings and capital lease obligations to their fair values were as follows (in thousands): Nextel Brazil Predecessor Company Fresh Start Adjustments Successor Company Brazil equipment financing $ 366,937 $ (2,989 ) $ 363,948 Brazil bank loans 294,322 9,987 304,309 Brazil capital lease and tower financing obligations 182,108 (76,737 ) 105,371 Other 988 — 988 Total debt 844,355 (69,739 ) 774,616 Less: current portion (667,617 ) (2,616 ) (670,233 ) $ 176,738 $ (72,355 ) $ 104,383 (l) Primarily represents the $61.3 million write-off of unamortized deferred gains related to the 2013 tower transactions and a $5.4 million increase related to the remeasurement of asset retirement obligations to their fair values. (m) Reflects the cumulative impact of all fresh start adjustments and the elimination of the Predecessor Company’s accumulated other comprehensive loss as follows (in thousands): Intangible asset fair value adjustment $ 562,702 Property, plant and equipment fair value adjustment (376,519 ) Debt fair value adjustment 69,739 Write-off of unamortized deferred gains on 2013 tower transactions 63,940 Other (58,090 ) Net gain on fresh start fair value adjustments 261,772 Tax impact of fresh start adjustments (842 ) Elimination of Predecessor Company's accumulated other comprehensive loss (1,112,343 ) Net impact on accumulated deficit $ (851,413 ) Reorganization Items. The components of our reorganization items were as follows (in thousands): Successor Company Predecessor Company Year Ended Six Months Ended Six Months Ended Year Ended December 31, 2016 December 31, 2015 June 30, 2015 December 31, 2014 Gain on settlement of liabilities subject to compromise $ — $ — $ 1,775,787 $ — Net gain on fresh start fair value adjustments — — 261,772 — Reorganization-related professional fees and other costs (803 ) 1,467 (80,685 ) (71,601 ) Total reorganization items $ (803 ) $ 1,467 $ 1,956,874 $ (71,601 ) |
Impairments, Restructuring and
Impairments, Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Impairment, Restructuring and Other Charges | Impairment, Restructuring and Other Charges Long-Lived Asset Impairment. During 2016, we reviewed our Nextel Brazil segment for potential impairment. While we are focused on effectively managing our business in Brazil, we are also considering potential strategic alternatives with third parties. Taking into consideration the current macroeconomic conditions in Brazil, our history of operating losses and the available sources of capital to fund our business plan, we currently believe that the most likely outcome for the future of our business is the sale of Nextel Brazil. We compared the carrying value of Nextel Brazil's long-lived assets to our estimate of undiscounted future cash flows. Our estimate of undiscounted future cash flows was probability-weighted and took into consideration our ability to obtain capital necessary to fund our business plan. In addition, we assumed that the proceeds from any potential sale of Nextel Brazil would be significantly less than its carrying value. Based on our estimates, we determined that the carrying value of our Nextel Brazil segment was not fully recoverable. As a result, we recorded a non-cash asset impairment charge of $1.34 billion to reduce the carrying values of Nextel Brazil's long-lived assets to their respective fair values. We estimated the fair value of our Nextel Brazil segment using a market approach. While we may ultimately complete a sale with a third party that is valued at more or less than our current market value, we estimated the fair value of our equity based on our market capitalization and combined it with the fair value of our outstanding debt obligations to determine the impairment charge. See Note 8 for more information on our estimate of the fair value of our debt obligations. We allocated the non-cash asset impairment charge first to reduce the $36.8 million carrying value of our trademark intangible asset to zero, and the remainder between property, plant and equipment and spectrum licenses on a pro rata basis. Other Asset Impairments. During 2016, Nextel Brazil recognized $11.0 million , in non-cash asset impairment charges primarily related to the abandonment of certain transmitter and receiver sites that are no longer required in its business. During the six months ended December 31, 2015 and the six months ended June 30, 2015, we recognized $12.6 million and $31.1 million in non-cash asset impairment charges, the majority of which related to the shutdown or abandonment of transmitter and receiver sites that are no longer required in Nextel Brazil's business, retail store closures related to the realignment of distribution channels in Brazil and the discontinuation of certain information technology projects in Brazil and at the corporate level. In 2014, we evaluated strategic options for the next generation of our push-to-talk services and determined that, for one of these options, further development was no longer probable. As a result, we recognized a $42.8 million asset impairment charge which was recognized at the corporate level. We also recognized a $6.4 million asset impairment charge at the corporate level related to the sale of our corporate aircraft in 2014. During 2014, Nextel Brazil recognized $21.9 million in non-cash asset impairment charges, the majority of which related to the shutdown or abandonment of transmitter and receiver sites and retail store closures related to the realignment of its distribution channels. Restructuring Charges. During the fourth quarter of 2016, in connection with the radio access network, or RAN, sharing agreement Nextel Brazil entered into in May 2016, we negotiated the early termination of certain leases with one of Nextel Brazil's tower operators. As a result, we recorded $21.4 million in restructuring costs in the fourth quarter of 2016 related to the early termination of leases for approximately 600 transmitter and receiver sites. We expect these costs to be disbursed over the next eight years. See Note 9 for more information related to this RAN sharing agreement. During 2016, we recognized $3.2 million in severance and other related costs at the corporate level. In addition, during 2016, Nextel Brazil recognized $10.8 million in restructuring charges primarily related to future lease costs for certain transmitter and receiver sites that are no longer required in its business and certain office closures. During the six months ended December 31, 2015, Nextel Brazil recognized $8.4 million in restructuring charges related to future lease costs for certain transmitter and receiver sites that are no longer necessary in our business plan. In addition, during the six months ended December 31, 2015, we recognized $9.9 million in severance and other related costs in Brazil and at the corporate level as a result of the separation of employees. These actions included the termination of: • approximately 45 employees at the corporate level, all of whom were notified in the fourth quarter of 2015 of their severance date; and • approximately 700 employees in Brazil, all of whom were severed in the second half of 2015. We also recognized $5.4 million in severance and other related costs at the corporate level during the six months ended June 30, 2015 related to the separation of approximately 30 employees. During 2014, we recognized $27.7 million in severance and related costs as a result of the termination of employees at the corporate level and in Brazil. These actions included the separation of: • approximately 85 employees at the corporate level, all of whom were severed in the second quarter of 2014; and • approximately 800 employees in Brazil, all of whom were severed in the third quarter of 2014. During 2013, we restructured and amended an existing network outsourcing agreement. In 2014, we settled certain refund claims related to this outsourcing agreement, which resulted in a restructuring benefit of $3.2 million . During 2014, we recognized a $4.5 million charge related to the cessation of our utilization of certain network services in Brazil. Total impairment, restructuring and other charges were as follows (in thousands): Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 Brazil $ 1,340,610 $ 23,968 $ 28,072 $ 42,271 Corporate 44,201 8,340 8,720 63,393 Total impairment, restructuring and other charges $ 1,384,811 $ 32,308 $ 36,792 $ 105,664 In addition, as of December 31, 2016, the total of our accrued restructuring charges was as follows (in thousands): Balance, January 1, 2016 — Successor Company $ 16,859 Restructuring and other charges 35,358 Cash payments (30,569 ) Foreign currency translation adjustment 2,455 Balance, December 31, 2016 — Successor Company $ 24,103 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Prepaid Expenses and Other. The components of our prepaid expenses and other are as follows: Successor Company December 31, 2016 2015 (in thousands) Cash in escrow $ 163,435 $ 6,000 Cash collateral related to performance bonds 30,928 47,450 Value-added taxes 29,829 33,467 Prepayment for roaming and RAN sharing agreements 27,731 20,556 Other prepaid assets 23,020 11,934 Other current assets 5,202 13,127 $ 280,145 $ 132,534 Property, Plant and Equipment, Net. The components of our property, plant and equipment, net are as follows: Successor Company December 31, 2016 2015 (in thousands) Land $ 675 $ 2,655 Building and leasehold improvements 1,489 11,765 Network equipment, communication towers and network software 95,298 492,814 Software, office equipment, furniture and fixtures and other 10,952 65,747 Less: Accumulated depreciation and amortization — (59,987 ) 108,414 512,994 Construction in progress 21,061 42,029 $ 129,475 $ 555,023 See Note 4 for more information regarding the impairment of property, plant and equipment. Intangible Assets, Net. Our intangible assets, net include the following: Successor Company December 31, 2016 December 31, 2015 Average Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Amortizable intangible assets: Licenses 26 $ 226,426 $ — $ 226,426 $ 850,818 $ (16,314 ) $ 834,504 Tradename 26 — — — 38,700 (744 ) 37,956 Customer relationships 4 17,255 — 17,255 23,042 (2,880 ) 20,162 $ 243,681 $ — $ 243,681 $ 912,560 $ (19,938 ) $ 892,622 See Note 4 for more information regarding the impairment of intangible assets. In addition, the weighted average useful lives of the intangible assets we acquired during the year ended December 31, 2016 was 30 years. Based on the carrying amount of our intangible assets as of December 31, 2016 and current exchange rates, we estimate amortization expense for each of the next five years to be as follows (in thousands): Y ears Estimated Amortization Expense 2017 $ 15,922 2018 15,922 2019 12,471 2020 9,020 2021 9,020 Actual amortization expense to be reported in future periods could differ from these estimates as a result of additional acquisitions of intangibles, as well as changes in foreign currency exchange rates and other relevant factors. Accrued Expenses and Other. The components of our accrued expenses and other are as follows: Successor Company December 31, 2016 2015 (in thousands) Contingencies $ 54,260 $ 49,507 Network system and information technology 50,286 32,079 Payroll related items and commissions 45,187 31,734 Non-income based taxes 28,158 33,097 Capital expenditures 17,514 25,182 Other 76,494 97,259 $ 271,899 $ 268,858 Other Assets. The components of our other long-term assets are as follows: Successor Company December 31, 2016 2015 (in thousands) Restricted cash $ 85,123 $ 275,235 Cash collateral related to performance bonds 56,523 94,236 Prepayment for roaming and RAN sharing agreements 37,433 — Equity interest in Nextel Argentina — 108,148 Other 92,789 76,622 $ 271,868 $ 554,241 Restricted Cash. The components of our restricted cash are as follows: Successor Company December 31, 2016 2015 (in thousands) Cash in escrow — Nextel Mexico sale $ 163,435 $ 186,593 Brazil judicial deposits 85,123 54,289 Cash in escrow — Nextel Peru sale — 34,353 Cash in escrow — Nextel Argentina sale — 6,000 $ 248,558 $ 281,235 Accumulated Other Comprehensive Loss. As of December 31, 2016 and 2015, the tax impact on our accumulated other comprehensive loss was not material. In addition, as of December 31, 2016 and 2015, all of our accumulated other comprehensive loss represented cumulative foreign currency translation adjustment. Supplemental Cash Flow Information. Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 (in thousands) Capital expenditures Cash paid for capital expenditures, including capitalized interest $ 61,291 $ 76,630 $ 88,485 $ 326,246 Change in capital expenditures accrued and unpaid or financed, including accreted interest capitalized (9,984 ) (4,018 ) (19,282 ) (92,884 ) $ 51,307 $ 72,612 $ 69,203 $ 233,362 Interest costs Interest expense, net $ 113,732 $ 55,563 $ 82,820 $ 372,904 Interest capitalized 283 2,142 2,556 27,712 $ 114,015 $ 57,705 $ 85,376 $ 400,616 Cash paid for interest, net of amounts capitalized $ 105,636 $ 59,914 $ 65,598 $ 261,161 In connection with the completion of the sale of Nextel Argentina to Grupo Clarin in January 2016, the promissory note that was initially issued in connection with this transaction was canceled. See Note 6 for more information. In addition, as of December 31, 2016, we recorded $125.7 million as a component of long-term debt on our consolidated balance sheet in connection with the signing of the license agreement related to our acquisition of 30MHz of spectrum in the 1.8 GHz band in July 2016. Other than these two transactions, we did not have any significant non-cash investing or financing activities during the year ended December 31, 2016. For the six months ended December 31, 2015, we had $25.0 million in non-cash investing activities, representing U.S. treasury notes that we received and cash placed in escrow to secure our indemnification obligations in connection with the sale of Nextel Argentina. For the six months ended June 30, 2015, we had the following non-cash investing and financing activities: • $2,067.7 million in Successor Company common stock that we issued in partial satisfaction of certain claims that were settled in connection with our emergence from Chapter 11 (see Note 3 for more information); and • $187.5 million in restricted cash that we received, which represents cash placed in escrow to secure our indemnification obligations in connection with the sale of Nextel Mexico. For the year ended December 31, 2014, we had $170.9 million , in non-cash financing activities, primarily related to the short-term financing of imported handsets and infrastructure in Brazil and co-location capital lease obligations on our communication towers in Brazil. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Sale of Nextel Argentina. On September 11, 2015, NII Mercosur Telecom, S.L.U. and NII Mercosur Moviles, S.L.U., both of which are indirect subsidiaries of NII Holdings, entered into a binding agreement with Grupo Clarin relating to the sale of all of the outstanding equity interests of Nextel Communications Argentina, S.R.L., or Nextel Argentina. This agreement provided for aggregate cash consideration of $178.0 million , of which $159.0 million was paid at signing in connection with the transfer of a 49% equity interest in Nextel Argentina and the grant of a call option that allowed Grupo Clarin or any of its affiliates to acquire the remaining 51% equity interest in Nextel Argentina upon receipt of required approvals from the regulatory authorities in Argentina. We received the remaining cash consideration in October 2015, including $6.0 million deposited in escrow to satisfy potential indemnification claims. On January 27, 2016, the agreement was amended to permit Grupo Clarin or any of its affiliates to exercise the right to acquire the remaining 51% equity interest prior to receiving regulatory approval, and Grupo Clarin and its affiliates immediately acquired the remaining 51% of Nextel Argentina for no additional proceeds. In the second half of 2016, $5.4 million in escrow was released to us, and we entered into a mutual release agreement with Grupo Clarin for all current and future claims. As a result, we have no further obligations in connection with this transaction. Sale of Nextel Mexico. On April 30, 2015, we, together with our wholly-owned subsidiary NIU Holdings LLC, completed the sale of our Mexican operations to New Cingular Wireless, an indirect subsidiary of AT&T. The transaction was structured as a sale of all of the outstanding stock of the parent company of Comunicaciones Nextel de Mexico, S.A. de C.V., or Nextel Mexico, for a purchase price of $1.875 billion , including $187.5 million deposited in escrow to satisfy potential indemnification claims. The net proceeds from this sale were $1.448 billion after deducting Nextel Mexico's outstanding indebtedness and applying other specified purchase price adjustments. As of December 31, 2016, we paid $4.2 million out of escrow to settle an indemnification claim, and in exchange, New Cingular Wireless released $20.0 million of the escrow to us. As of December 31, 2016, $163.4 million remained in escrow. To the extent there are no outstanding claims, we expect the remaining amount held in escrow will be released to us in early May 2017. If any new claims are submitted in the future, the amount and timing of the release of the remaining funds in escrow could be impacted. We are currently subject to various ongoing tax audits by the federal tax authorities in Mexico related to certain years prior to the sale of Nextel Mexico for which we have indemnified New Cingular Wireless. To date, we have received one assessment in the amount of $10.0 million that we are vigorously disputing through an administrative appeals process. In addition, as of December 31, 2016, we accrued $2.9 million related to certain of the preliminary findings by the federal tax authorities in Mexico. We currently estimate the range of reasonably possible losses, excluding penalties and interest, related to these preliminary findings, for which we have not accrued liabilities as they are not deemed probable, to be between zero and approximately $60.0 million . Sale of Nextel Chile. In August 2014, our wholly-owned subsidiaries NII Mercosur Telecom, S.L., NII Mercosur Moviles, S.L. and NII International Telecom S.C.A. completed the sale of all of the outstanding equity interests of our wholly-owned subsidiary, Nextel Chile S.A., or Nextel Chile, to Fucata, S.A., a venture comprised of Grupo Veintitres and Optimum Advisors, for a de minimus amount. Sale of Nextel Peru. In August 2013, our wholly-owned subsidiaries NII Mercosur Telecom, S.L. and NII Mercosur Moviles, S.L., completed the sale of all of the outstanding equity interests of our wholly-owned subsidiary, Nextel del Peru, S.A., or Nextel Peru, to Empresa Nacional de Telecomunicaciones S.A. and one of its subsidiaries, Entel Inversiones, S.A., which we refer to collectively as Entel. In connection with this sale, $50.0 million was placed in escrow. Through December 31, 2015, we paid $15.6 million in response to certain claims. In December 2016, we paid $17.3 million out of the escrow account to settle all outstanding claims with Entel, and the remaining $17.1 million in escrow was released to us. As a result, Entel released us from all current and future indemnification obligations, and we have no further obligations in connection with this transaction. In connection with the sale of Nextel Argentina, Nextel Mexico, Nextel Chile and Nextel Peru, we have reported the results of these operating companies as discontinued operations in this annual report on Form 10-K. Accordingly, we reclassified the results of operations for these former operating companies as discontinued operations for all periods presented. Unless otherwise noted, amounts included in these notes to our consolidated financial statements exclude amounts attributable to discontinued operations. The major components of income (loss) from discontinued operations related to Nextel Argentina, Nextel Mexico, Nextel Chile and Nextel Peru were as follows (in thousands): Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 Operating revenues $ — $ 75,450 $ 599,038 $ 1,878,362 Operating expenses — (60,863 ) (675,245 ) (2,423,218 ) Other income (expense), net — 1,159 (49,974 ) (148,641 ) Income (loss) before income tax provision — 15,746 (126,181 ) (693,497 ) Income tax provision — (4,770 ) (8,065 ) (69,115 ) — 10,976 (134,246 ) (762,612 ) (Loss) income on disposal of Nextel Argentina, Nextel Mexico, Nextel Chile and Nextel Peru (19,994 ) 632 355,360 29,585 (Loss) income from discontinued operations, net of income taxes $ (19,994 ) $ 11,608 $ 221,114 $ (733,027 ) |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt In connection with the implementation of fresh start accounting in connection with our emergence from Chapter 11, we remeasured the components of our debt to their fair values as of June 30, 2015. As a result, the carrying values of our bank loans do not represent the outstanding principal balances. See Note 3 for more information. The components of our debt are as follows: Successor Company December 31, 2016 2015 (in thousands) Brazil equipment financing $ 291,597 $ 339,850 Brazil bank loans 242,076 240,396 Brazil spectrum financing 125,684 — Brazil capital lease and tower financing obligations 96,722 84,295 Other 237 526 Total debt 756,316 665,067 Less: current portion (540,474 ) (582,420 ) $ 215,842 $ 82,647 Brazil Equipment Financing Facility. In April 2012, Nextel Brazil entered into a U.S. dollar-denominated loan agreement with the China Development Bank, under which Nextel Brazil was able to borrow up to $500.0 million to finance infrastructure equipment and certain other costs related to the deployment of its WCDMA network. A portion of this financing has a floating interest rate based on LIBOR plus 2.90% ( 4.22% and 3.75% as of December 31, 2016 and 2015, respectively), and the remainder has a floating interest rate based on LIBOR plus 1.80% ( 3.12% and 2.65% as of December 31, 2016 and 2015, respectively). This financing is guaranteed by NII Holdings. In addition, the terms of this financing may limit Nextel Brazil's ability to pay dividends and other upstream payments. Loans under this agreement have a three -year borrowing period, a seven -year repayment term that began in August 2015 and a final maturity of June 2022. Assets purchased using the amounts borrowed under Nextel Brazil's equipment financing facility are pledged as collateral. In December 2014, Nextel Brazil and the lender under the equipment financing facility agreed to amend this facility to remove all financial covenants beginning with the December 31, 2014 measurement date through the June 30, 2017 measurement date so that the first measurement date under the amended facility will be December 31, 2017. In exchange for that covenant relief, Nextel Brazil granted the lender preferential rights to the amounts held in certain bank accounts. Based on our current outlook, which reflects significant uncertainty about the economic and competitive conditions in Brazil that are currently impacting our ability to increase our revenues and generate profitability, we believe it is unlikely that we will satisfy the applicable financial covenants included in Nextel Brazil's equipment financing facility as of the next measurement date at December 31, 2017. In connection with our acceptance of the government-provided spectrum financing discussed below, we are in the process of securing waivers from the lender of Nextel Brazil's equipment financing facility to permit Nextel Brazil to incur and maintain this spectrum financing. In addition, we have requested waivers of an event of default that resulted from a failure to timely notify this lender of a permitted merger that occurred between two guarantors in Brazil. As a result of either of these events of default, the lender of Nextel Brazil's equipment financing facility could provide notice to declare the amounts outstanding under this facility due and payable. Because of these events of default, we have continued to classify the amount outstanding under this facility as a current liability in our consolidated balance sheet as of December 31, 2016. As of December 31, 2016, we had $293.6 million in principal amount outstanding under Nextel Brazil's equipment financing facility. We do not have the ability to borrow additional amounts under this facility. Brazil Bank Loans. In December 2011, Nextel Brazil borrowed the equivalent of $341.2 million from a Brazilian bank and utilized the proceeds of this borrowing to repay a portion of the unpaid purchase price relating to the spectrum it acquired in June 2011. Because this loan is denominated in Brazilian reais, the payments for principal and interest will fluctuate in U.S. dollars based on changes in the exchange rate of the Brazilian real relative to the U.S. dollar. In October 2012, Nextel Brazil entered into an additional Brazilian real-denominated bank loan agreement, under which Nextel Brazil borrowed the equivalent of approximately $196.9 million . In February 2015, Nextel Brazil and the lenders providing the local bank loans entered into standstill agreements under which the lenders agreed that they would not seek remedies under the provisions of the agreements related to Nextel Brazil's failure to satisfy the financial covenants in the loan agreements in the period before September 15, 2015 and that further principal repayment obligations due between the signing date and September 15, 2015 would be suspended. In addition, the standstill agreements formally committed the lenders to sign further amendments to the terms of the local bank loans. Among other things, the amendments revised the financial covenants and principal repayment schedule for the loans, granted the lenders a security interest over amounts held in certain collection accounts maintained with each lender and increased the interest margin on the loans from approximately 115% of the local Brazilian borrowing rate to approximately 140% of this local rate. Certain of these amendments were implemented in connection with the standstill agreements and the remainder became effective in connection with our emergence from Chapter 11 proceedings. Subsequent to the amendments, both of these loan agreements have floating interest rates equal to 139.54% of the local Brazilian borrowing rate ( 19.05% and 19.74% as of December 31, 2016 and 2015, respectively), have monthly repayment terms that began in June 2016 and a final maturity of October 2019. The amendments provided for a "covenant holiday" through December 31, 2015, during which time we were not required to comply with the financial covenants outlined in Nextel Brazil's local bank loan agreements. In August 2016, Nextel Brazil secured waivers from the lenders of its local bank loans related to this financial covenant for the June 30, 2016 measurement date. In February 2017, Nextel Brazil secured additional waivers from the lenders of these loans related to this financial covenant as of December 31, 2016. The waivers also provide for a "covenant holiday" inclusive of the June 30, 2017 testing period, during which time no compliance will be required with respect to the net debt financial covenant. Starting on December 31, 2017, and on each six -month anniversary thereafter, Nextel Brazil must maintain a net debt to earnings before interest, taxes, depreciation and amortization, or EBITDA, ratio over the trailing 12 months of no greater than 2.5 . In February 2017, Nextel Brazil and the lenders of our local bank loans entered into amendments to these loan agreements. The amendments provide, among other things, a 120 -day standstill period, effective March 2, 2017, during which time no amortization payments will be required with respect to the related loans while Nextel Brazil seeks to negotiate long-term modifications of the financing arrangements, including potential further extensions of the existing amortization relief. To the extent Nextel Brazil is unable to agree on long-term amendments by July 2017, we will be required to make catch-up principal payments totaling 84.4 million Brazilian reais, or approximately $25.2 million based on current foreign currency exchange rates, followed by the resumption of the amortization schedule contained in the amended agreements. Based on our current outlook, we believe it is unlikely that we will satisfy one of the applicable financial covenants included in both of Nextel Brazil's local bank loan agreements as of the next measurement date at December 31, 2017. If we are unable to negotiate amendments to the existing loan agreements or secure waivers from the lenders, we could be in default. If a default occurs, the lenders could require us to repay the amounts outstanding under these arrangements. As a result of this uncertainty, we have continued to classify the amounts outstanding under Nextel Brazil's local bank loans as current liabilities in our consolidated balance sheet as of December 31, 2016. As of December 31, 2016, we had $237.4 million principal amount outstanding under Nextel Brazil's local bank loans. Brazil Spectrum Financing. In December 2015, Nextel Brazil participated in a spectrum auction and was the successful bidder for 30 MHz of spectrum in the 1.8 GHz band for 455 million Brazilian reais, or approximately $116.7 million based on foreign currency exchange rates at the time. The spectrum license has an initial term of 15 years with an optional 15 -year renewal period. In July 2016, Nextel Brazil paid 45.5 million Brazilian reais, or approximately $14.0 million based on foreign currency exchange rates at the time, in connection with the signing of this license agreement. The remaining 409.5 million Brazilian reais, or approximately $122.2 million based on current foreign currency exchange rates, plus accrued interest of 1% per month and annual inflationary adjustments, is due in six annual installments, beginning in July 2019. Nextel Brazil elected to accept the government-provided spectrum financing for the remaining amount due under this spectrum financing. Capital Leases and Tower Financing Obligations. 2013 Tower Transactions. In December 2013, Nextel Brazil sold 1,940 communication towers for proceeds based on foreign currency exchange rates at the time of $348.0 million , subject to purchase price adjustments and guaranteed by NIIT, which is a wholly-owned subsidiary of NII Holdings. Nextel Brazil also sold 103 towers for proceeds of $18.6 million in June 2014, subject to purchase price adjustments and guaranteed by NIIT. In October 2014, upon the finalization of the purchase price adjustments, Nextel Brazil completed the sale of all of these towers and began accounting for this transaction as a sale-leaseback. As a result, Nextel Brazil recognized an immaterial loss on the sale of the towers as a component of operating income in the fourth quarter of 2014. Site-Related Capital Lease Obligations. We have entered into various agreements under which we are entitled to lease space on towers or other structures owned by third parties and to install our transmitter and receiver equipment in that space. Tower Financing Obligations. From 2002 to 2008, we sold and subsequently leased back space on certain transmitter and receiver sites in Brazil. Due to our continuing involvement with these properties, we account for these transactions as financing arrangements. As a result, we did not recognize any gains from the sales of these towers under these arrangements, and we maintain the tower assets on our consolidated balance sheets. In addition, we recognized the proceeds received as financing obligations. We recognize ground rent payments as operating expenses in cost of service and tower base rent payments as interest expense and a reduction in the financing obligation using the effective interest method. In addition, we recognize co-location rent payments made by the third party lessees to the owner of the site as other operating revenues because of our continuing involvement with the tower assets. During the years ended December 31, 2016 and 2014, we recognized $7.7 million and $19.8 million , respectively, in other operating revenues related to these co-location lease arrangements. During the six months ended December 31, 2015 and the six months ended June 30, 2015, we recognized $3.6 million and $7.8 million in other operating revenues, respectively, related to these arrangements. Debt Maturities. Because it is unlikely that we will be able to satisfy one of the applicable financial covenants in Nextel Brazil's local bank loans as of the next measurement date at December 31, 2017, and as a result of certain events of default related to Nextel Brazil's equipment financing facility, we classified the principal amounts outstanding under these facilities as due in 2017 for purposes of the table below. For the years subsequent to December 31, 2016 , scheduled annual maturities of all debt outstanding are as follows (in thousands): Year Principal Repayments 2017 $ 535,972 2018 4,129 2019 21,961 2020 22,836 2021 23,833 Thereafter 144,843 Total $ 753,574 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Nextel Argentina. On September 11, 2015, two of our indirect subsidiaries entered into a binding agreement with Grupo Clarin relating to the sale of all of the outstanding equity interests of Nextel Argentina. In connection with the initial agreement, we issued a non-recourse promissory note in the amount of $85.0 million and pledged the remaining 51% of the equity interests in Nextel Argentina to Grupo Clarin. We recorded our retained 51% interest in Nextel Argentina as an equity method investment under the fair value option, which is included as a component of other assets in our consolidated balance sheet. As of December 31, 2015, we estimated the fair value of this investment to be $108.1 million . In addition, as of December 31, 2015, we recorded the non-recourse promissory note as a component of other long-term liabilities in our consolidated balance sheet at its estimated fair value of $108.1 million . This fair value estimate was based on the $178.0 million purchase price paid by Grupo Clarin, as adjusted for changes in excess cash from September 11, 2015 through December 31, 2015. On January 27, 2016, the agreement was amended to permit Grupo Clarin or any of its affiliates to exercise the right to acquire the remaining 51% equity interest prior to receiving regulatory approval, and Grupo Clarin and its affiliate immediately acquired the remaining 51% of Nextel Argentina for no additional proceeds. In connection with the completion of this transaction, the promissory note was canceled on January 27, 2016. Available-for-Sale Securities. As of December 31, 2016 and 2015 , available-for-sale securities held by Nextel Brazil included $73.8 million and $56.2 million , respectively, in investment funds. As of December 31, 2015, available-for-sale securities held by Brazil also included $9.3 million in certificates of deposit with a Brazilian bank. These funds invest primarily in Brazilian government bonds, long-term, low-risk bank certificates of deposit and Brazilian corporate debentures. During the year ended December 31, 2016, the six months ended December 31, 2015 and the six months ended June 30, 2015, as well as during the year ended December 31, 2014, we did not have any material unrealized gains or losses associated with these investments. We account for our available-for-sale securities at fair value. The fair value of our Brazilian certificates of deposit is based on their current redemption amount and we classify these certificates of deposit within Level 2 of the fair value hierarchy. The fair value of Nextel Brazil's investment funds is measured based on the funds' net asset value as a practical expedient, which is excluded from the fair value hierarchy. Held-to-Maturity Investments. We periodically invest some of our cash holdings in certain securities that we intend to hold to maturity. As of December 31, 2015, held-to-maturity investments included $18.1 million in short-term investments at NIIT in U.S. treasury notes. We account for held-to-maturity securities at amortized cost, which approximates the fair value observed in the market. These securities matured in February 2016. As of December 31, 2015, the fair value of our held-to-maturity investments was $18.0 million . Debt Instruments. The carrying amounts and estimated fair values of our debt instruments are as follows: December 31, 2016 2015 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (in thousands) Brazil equipment financing $ 291,597 $ 280,893 $ 339,850 $ 340,189 Bank loans and other 242,313 221,458 240,922 229,366 Brazil spectrum financing 125,684 117,059 — — $ 659,594 $ 619,410 $ 580,772 $ 569,555 Bank loans and other consists primarily of loans with certain banks in Brazil. We estimated the fair value of these bank loans, as well as the fair value of our equipment financing facility and spectrum financing in Brazil, utilizing inputs such as U.S. Treasury security yield curves, prices of comparable bonds, LIBOR, U.S. Treasury bond rates and credit spreads on comparable publicly traded bonds. We consider Nextel Brazil's equipment financing facility, spectrum financing and its bank loans and other to be Level 3 in the fair value hierarchy. Derivative Instruments. We occasionally enter into derivative transactions for risk management purposes. We have not and will not enter into any derivative transactions for speculative or profit generating purposes. We record all derivative instruments as either assets or liabilities on our consolidated balance sheet at their fair value. As of December 31, 2016 and 2015, Nextel Brazil had an immaterial amount of derivative instruments that we classified as short-term investments in our consolidated balance sheets. We consider this measurement to be Level 3 in the fair value hierarchy. Nextel Brazil entered into foreign currency option agreements to manage the foreign currency exposures associated with the forecasted purchase of handsets and other U.S. dollar-denominated payments. We do not apply hedge accounting to these derivative instruments. As a result, we have included all changes in the fair value of these instruments as a component of other expense, net in our consolidated statement of comprehensive (loss) income. For the year ended December 31, 2016, Nextel Brazil recognized $3.3 million in net realized losses, resulting from the changes in estimated fair value of these derivative instruments. Unrealized losses recognized during 2016 were not material. For the six months ended December 31, 2015 and June 30, 2015, Nextel Brazil recognized $5.2 million and $6.3 million in net realized gains, respectively, resulting from the changes in the estimated fair value of these derivative instruments. The gains and losses we recognized in the year ended December 31, 2014 were not material. In addition, for the six months ended December 31, 2015 and June 30, 2015, Nextel Brazil recorded an immaterial amount of unrealized losses resulting from the changes in the estimated fair value of these derivative instruments. Other Financial Instruments. The carrying values of cash and cash equivalents, accounts receivable and accounts payable contained in our consolidated balance sheets approximate their fair values due to the short-term nature of these instruments. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Capital and Operating Lease Commitments. We have co-location capital lease obligations on some of our transmitter and receiver sites in Brazil. See Note 7 for further information regarding these agreements. We lease various cell sites, office facilities and other assets under operating leases. Some of these leases provide for annual increases in our rent payments based on changes in locally-based consumer price indices. The remaining terms of our cell site leases range from less than one to fifteen years and are generally renewable for additional terms. The remaining terms of our office leases range from less than one to ten years. For the year ended December 31, 2016, total rent expense under operating leases was $164.6 million . In addition, during the six months ended December 31, 2015, the six months ended June 30, 2015 and the year ended December 31, 2014, total rent expense under operating leases was $76.4 million , $93.4 million and $229.7 million , respectively. For years subsequent to December 31, 2016 , future minimum payments for all capital and operating lease obligations that have initial or remaining noncancelable lease terms exceeding one year, net of rental income, are as follows (in thousands): Capital Leases Operating Leases Total 2017 $ 55,708 $ 126,011 $ 181,719 2018 47,269 112,167 159,436 2019 41,397 103,531 144,928 2020 41,613 94,241 135,854 2021 41,519 85,644 127,163 Thereafter 631,216 203,718 834,934 Total minimum lease payments 858,722 725,312 1,584,034 Less: imputed interest (762,000 ) — (762,000 ) Total $ 96,722 $ 725,312 $ 822,034 Brazil RAN Sharing Commitment. In May 2016, Nextel Brazil entered into an amendment to a nationwide roaming voice and data services agreement with Telefonica Brazil, S.A., or Telefonica, to reduce the usage rates for roaming traffic. Concurrently, Nextel Brazil entered into a 10 -year RAN sharing agreement with Telefonica, under which Telefonica will permit Nextel Brazil to use some of its tower and equipment infrastructure to transmit telecommunications signals on Nextel Brazil's spectrum. Nextel Brazil expects to use this agreement to fulfill the regulatory coverage obligations under its spectrum licenses rather than utilizing its own network. These agreements require Nextel Brazil to meet certain minimum annual commitments over a five -year period totaling 800 million Brazilian reais, or approximately $246.2 million based on foreign currency exchange rates at the time, which replaced the remaining commitments under the original roaming agreement. Nextel Brazil was required to prepay 250 million Brazilian reais, or approximately $76.9 million based on foreign currency exchange rates at the time, shortly after the agreements became effective with receipt of regulatory approvals, which occurred in August 2016. We are allocating the aggregate 800 million Brazilian reais in minimum payments on a relative fair value basis to the services being received. We are recognizing approximately 318 million Brazilian reais on a ratable basis over a period of five years for the amended roaming agreement, which began in August 2016, and approximately 482 million Brazilian reais over a period of approximately eight years for the RAN sharing agreement, which began in October 2016. In the fourth quarter of 2016, Nextel Brazil negotiated the early termination of leases for approximately 600 transmitter and receiver sites in connection with this RAN sharing agreement and recognized restructuring costs related to these terminations. See Note 4 for more information. We expect to incur restructuring costs of approximately $30.0 million in 2017 in connection with the termination of an additional 1,400 transmitter and receiver sites in low-usage areas. Equipment, Handsets and Other Commitments. We are a party to purchase agreements with various suppliers, under which we have committed to purchase equipment, network services and handsets that will be used or sold in the ordinary course of business. As of December 31, 2016, we are committed to purchase $439.1 million in total under these arrangements, which includes amounts related to the RAN sharing agreement discussed above, $276.2 million of which we are committed to pay in 2017, $87.9 million of which we are committed to pay in 2018 and 2019, and the remaining $75.0 million of which we are committed to pay in 2020 and 2021. These amounts do not represent our entire anticipated purchases in the future, but represent only those items that are the subject of contractual obligations. Our commitments are generally determined based on noncancelable quantities or termination amounts. We also purchase products and services as needed with no firm commitment. Amounts actually paid under some of these agreements will likely be higher due to variable components of these agreements. The more significant variable components that determine the ultimate obligation owed include such items as hours contracted, subscribers and other factors. In addition, we are a party to various arrangements that are conditional in nature and obligate us to make payments only upon the occurrence of certain events, such as the delivery of functioning software or a product. Contingencies. Nextel Brazil has received various assessment notices from state and federal Brazilian authorities asserting deficiencies in payments related primarily to value-added taxes, excise taxes on imported equipment and other non-income based taxes. Nextel Brazil has filed various administrative and legal petitions disputing these assessments. In some cases, Nextel Brazil has received favorable decisions, which are currently being appealed by the respective governmental authority. In other cases, Nextel Brazil's petitions have been denied, and Nextel Brazil is currently appealing those decisions. Nextel Brazil also had contingencies related to certain regulatory, civil and labor-related matters as of December 31, 2016 and 2015. As of December 31, 2016 and 2015 , Nextel Brazil had accrued liabilities of $76.8 million and $57.7 million , respectively, related to contingencies, of which $1.4 million and $5.4 million related to unasserted claims, respectively. We currently estimate the reasonably possible losses related to matters for which Nextel Brazil has not accrued liabilities, as they are not deemed probable, to be approximately $520.0 million as of December 31, 2016 . We are continuing to evaluate the likelihood of probable and reasonably possible losses, if any, related to all known contingencies. As a result, future increases or decreases to our accrued liabilities may be necessary and will be recorded in the period when such amounts are determined to be probable and reasonably estimable. Legal Proceedings. We are subject to claims and legal actions that may arise in the ordinary course of business. We do not believe that any of these pending claims or legal actions will have a material effect on our business, financial condition, results of operations or cash flows. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Common Stock. Holders of our common stock are entitled to one vote per share on all matters submitted for action by the stockholders and share equally, share for share, if dividends are declared on the common stock. If our Company is partially or completely liquidated, dissolved or wound up, whether voluntarily or involuntarily, the holders of the common stock are entitled to share ratably in the net assets remaining after payment of all liquidation preferences, if any, applicable to any outstanding preferred stock. There are no redemption or sinking fund provisions applicable to the common stock. Undesignated Preferred Stock. Our Board of Directors has the authority to issue undesignated preferred stock of one or more series and in connection with the creation of such series, to fix by resolution the designation, voting powers, preferences and relative, participating, optional and other special rights of such series, and the qualifications, limitations and restrictions thereof. As of December 31, 2016 , we had not issued any shares of undesignated preferred stock. Common Stock Reserved for Issuance. In connection with our emergence from Chapter 11, our Board of Directors adopted an incentive compensation plan, which contemplates grants of up to 5,263,158 shares of our common stock to directors and employees of the reorganized company, including potential grants of restricted stock, restricted stock units and options to purchase shares of our common stock. Under the 2015 Incentive Compensation Plan, we had 809,613 shares of our common stock reserved for future issuance as of December 31, 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of (loss) income from continuing operations before income taxes and the related income tax benefit (provision) are as follows (in thousands): Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 U.S. $ (53,843 ) $ (1,820 ) $ 1,745,628 $ (340,545 ) Non-U.S. (1,482,928 ) (295,686 ) (224,218 ) (879,150 ) Total $ (1,536,771 ) $ (297,506 ) $ 1,521,410 $ (1,219,695 ) Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 Current: Federal $ — $ — $ — $ — Foreign (291 ) 2,502 (1,104 ) (2,924 ) Total current income tax (provision) benefit (291 ) 2,502 (1,104 ) (2,924 ) Deferred: Federal 2,864 (403 ) (814 ) (1,846 ) State, net of Federal tax benefit (provision) 319 (45 ) (91 ) (206 ) Foreign — 2,961 — — Total deferred income tax benefit (provision) 3,183 2,513 (905 ) (2,052 ) Total income tax benefit (provision) $ 2,892 $ 5,015 $ (2,009 ) $ (4,976 ) A reconciliation of the U.S. statutory Federal income tax rate to our effective tax rate as a percentage of (loss) income from continuing operations before income tax benefit (provision) is as follows: Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 Statutory Federal tax rate 35% 35% 35% 35% Reorganization items — — (46) — Effect of foreign operations (2) (12) — (2) Change in deferred tax asset valuation allowance (32) (20) 9 (35) Other, net (1) (1) 2 2 Effective tax rate — 2% — — The components of our deferred tax assets and liabilities consist of the following: Successor Company December 31, 2016 2015 (in thousands) Deferred tax assets: Net operating losses and capital loss carryforwards $ 6,363,915 $ 5,094,306 Allowance for doubtful accounts 17,867 13,644 Accrued expenses 54,263 54,823 Accrual for contingent liabilities 24,669 18,413 Intangible assets 130,983 — Property, plant and equipment 253,882 147,774 Leasing related activity 25,822 3,543 Equity compensation 1,182 701 Long term debt 53,159 68,159 Inventory reserve 1,729 1,982 Other 17,573 34,033 6,945,044 5,437,378 Valuation allowance (6,945,044 ) (5,290,813 ) Total deferred tax asset — 146,565 Deferred tax liabilities: Intangible assets — 149,749 Total deferred tax liability — 149,749 Net deferred tax liability $ — $ (3,184 ) As of December 31, 2016, we had $1.4 billion of net operating loss carryforwards for U.S. Federal and state income tax purposes, which expire in various amounts beginning in 2027 through 2036. Due to our emergence from bankruptcy on June 26, 2015, the timing and manner in which we will utilize the net operating loss carryforwards in any year will be limited relating to changes in our ownership. The annual limitation is $40.2 million , and some of our net operating loss carryforwards will expire before use in the future due to this limitation. As a result of this limitation, our net operating loss carryforwards for U.S. Federal and state income tax purposes are $888.1 million . As of December 31, 2016 , our Brazilian subsidiaries had $1.6 billion of net operating loss carryforwards that can be carried forward indefinitely, but the amount that we can utilize annually is limited to 30% of Brazilian taxable income before the net operating loss deduction. Our foreign subsidiaries' ability to utilize the foreign tax net operating losses in any single year ultimately depends upon their ability to generate sufficient taxable income. As of December 31, 2016, our holding companies in Luxembourg each had net operating losses ranging from $1.2 billion to $8.5 billion that can be carried forward indefinitely. Our holding companies in Spain had $847.9 million of net operating loss carryforwards that can be carried forward 18 years, and our holding company in the Netherlands had an immaterial amount of net operating loss carryforwards that can be carried forward nine years. Given the nature of activities that are considered taxable in these jurisdictions and the activities engaged in by the holding companies, these net operating loss carryforwards will never be utilized by our holding companies. The deferred tax asset valuation allowances that our subsidiaries and holding companies had as of December 31, 2016 and 2015 are as follows: Successor Company 2016 2015 (in millions) Brazil $ 1,089.9 $ 500.8 U.S. 367.2 359.8 Luxembourg 5,275.9 4,216.0 Spain 212.0 214.2 Total $ 6,945.0 $ 5,290.8 The realization of deferred tax assets is dependent on the generation of future taxable income sufficient to realize our tax loss carryforwards and other tax deductions. Valuation allowances are required to be recognized on deferred tax assets unless it is determined that it is “more-likely-than-not” that the asset will be realized. As of December 31, 2016 , w e continued to record full valuation allowances on the deferred tax assets of our foreign operating companies, our U.S. parent company and subsidiaries and our foreign holding companies due to substantial negative evidence, including the recent history of cumulative losses and the projected losses for 2017 and subsequent years. We are subject to income taxes in both the U.S. and the non-U.S. jurisdictions in which we operate and to potential examination by the relevant tax authorities. The earliest years that remain subject to examination by jurisdiction are: U.S. - 2007; Brazil - 2011, and Luxembourg, Netherlands and Spain - 2009. We regularly assess the potential outcome of future examinations in each of the taxing jurisdictions when determining the adequacy of our provision for income taxes. We have only recorded financial statement benefits for tax positions which we believe reflect the “more-likely-than-not” criteria incorporated in the FASB’s authoritative guidance on accounting for uncertainty in income taxes, and we have established income tax accruals in accordance with this authoritative guidance where necessary. Once a financial statement benefit for a tax position is recorded or a tax accrual is established, we adjust it only when there is more information available or when an event occurs necessitating a change. While we believe that the amounts of the recorded financial statement benefits and tax accruals reflect the more-likely-than-not criteria, it is possible that the ultimate outcome of current or future examinations may result in a reduction to the tax benefits previously recorded on the financial statements or may exceed the current income tax reserves in amounts that could be material. As of December 31, 2016, our unrecognized tax benefits are not material, and there are no unrecognized tax benefits that could potentially affect our future effective tax rate. |
Employee Stock and Benefit Plan
Employee Stock and Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Employee Stock and Benefit Plans | Employee Stock and Benefit Plans In connection with our emergence from Chapter 11, NII Holdings canceled all shares of its common stock, preferred stock and other equity interests that existed prior to June 26, 2015. Our Board of Directors subsequently adopted an incentive compensation plan, which we refer to as the 2015 Incentive Compensation Plan. The 2015 Incentive Compensation Plan provides us with the ability to award stock options, restricted stock, restricted stock units, and cash-based incentives to our employees, directors and officers. The 2015 Incentive Compensation Plan contemplates grants of up to 5,263,158 shares of our common stock to directors and employees of the reorganized company, including potential grants of restricted stock, restricted stock units and options to purchase shares of our common stock. All grants or awards made under the 2015 Incentive Compensation Plan are governed by written agreements between us and the participants and have a maximum term of ten years. On the date of our emergence from Chapter 11, we made grants of 564,311 shares of restricted stock, 41,721 restricted stock units and 1,580,208 options to purchase shares of common stock. Subsequent to this date, we made grants of an additional 468,069 shares of restricted stock and 2,821,457 options to purchase shares of common stock. Stock options, restricted stock awards and restricted stock units are also granted to certain new employees on the later of the date of hire or the date that the grant is approved. In addition, under the provisions outlined in the 2015 Incentive Compensation Plan, our chief executive officer may grant, under authority delegated to him by the Compensation Committee of our Board of Directors, a limited number of stock options (not to exceed 40,000 shares in the aggregate for the plan year) and restricted stock/restricted stock unit awards (not to exceed 20,000 shares in aggregate for the plan year) to employees who are not executive officers. Stock Option Awards For the year ended December 31, 2016 , the six months ended December 31, 2015, the six months ended June 30, 2015 and the year ended December 31, 2014 , we recognized $2.8 million , $1.0 million , $1.5 million and $4.0 million , respectively, in share-based compensation expense related to stock options. The amounts recognized in our consolidated statement of comprehensive (loss) income for tax benefits related to share-based payment arrangements in 2016, 2015 and 2014 were not material. We include substantially all share-based compensation expense as a component of selling, general and administrative expenses. As of December 31, 2016 , there was $4.1 million in unrecognized compensation cost related to non-vested employee stock option awards. We expect this cost to be recognized over a weighted average period of 1.72 years. The amount of cash paid for exercises under all share-based payment arrangements was immaterial for the year ended December 31, 2016, the six months ended December 31, 2015, the six months ended June 30, 2015 and the year ended December 31, 2014. As a result of the Company's emergence from Chapter 11 proceedings, all prior stock option awards granted under the 2012 Incentive Compensation Plan were canceled. Our stock options generally vest thirty-three percent per year over a three -year period. The following table summarizes stock option activity under the 2015 Incentive Compensation Plan: Number of Options Weighted Average Exercise Price per Option Weighted Average Remaining Life Aggregate Intrinsic Value Outstanding, December 31, 2015 3,627,489 $ 11.53 Granted 553,280 $ 3.83 Exercised — — Forfeited (904,664 ) $ 11.86 Outstanding, December 31, 2016 3,276,105 $ 10.14 7.74 — Exercisable, December 31, 2016 997,926 $ 10.80 6.94 — There were no options exercised during the year ended December 31, 2016. As of December 31, 2016, our vested stock options had an intrinsic value of zero . Generally, our stock options are non-transferable, except by will or laws of descent or distribution, and the actual value of the stock options that a recipient may realize, if any, will depend on the excess of the market price on the date of exercise over the exercise price. If a participant's employment is terminated without cause prior to the date options are available to be exercised, the participant shall receive stock options on a pro-rata basis based on the fraction of the performance period that has elapsed from the beginning of the performance period until the participant's termination. If the participant does not exercise the pro-rata shares within 90 days of the employee's termination, the options are considered forfeited and are available for reissuance under the terms of the 2015 Incentive Compensation Plan. The weighted average fair value of the stock option awards on their grant dates using the Black-Scholes-Merton option-pricing model was $1.48 for each option granted during the year ended December 31, 2016 and $2.98 for the period from June 26, 2015 to December 31, 2015, based on the following assumptions: Successor Company Year Ended Period from June 26, 2015 December 31, 2016 to December 31, 2015 Risk free interest rate 1.53% - 1.90% 1.71% - 2.05% Expected stock price volatility 40.71% - 40.87% 31.73% - 41.92% Expected term in years 5.16 5.16 - 6.00 Expected dividend yield — — The expected term of stock option awards granted represents the period that we expect our stock option awards will be outstanding and was determined based on a Monte Carlo model of stock prices and option disposition intensity. The intensity is based on models of stock price path, time dependent suboptimal voluntary exercise and post-vest termination. The risk free interest rate for the grant date of options granted is consistent with the zero-coupon U.S. Treasury rate curve. Expected volatility takes into consideration a blended historical and implied volatility of comparable companies' option contracts. Restricted Stock and Restricted Stock Unit Awards For the year ended December 31, 2016 , the six months ended December 31, 2015, the six months ended June 30, 2015 and the year ended December 31, 2014, we recognized $3.4 million , $1.9 million , $2.3 million and $10.4 million , respectively, in share-based compensation expense related to restricted stock and restricted stock units. The amounts recognized in our consolidated statement of comprehensive (loss) income for tax benefits related to share-based payment arrangements for the year ended December 31, 2016, the six months ended December 31, 2015, the six months ended June 30, 2015 and the year ended December 31, 2014 were not material. We include substantially all share-based compensation expense as a component of selling, general and administrative expenses. As a result of the Company's emergence from Chapter 11 proceedings, all prior restricted stock awards and restricted stock units granted under the 2012 Incentive Compensation Plan were canceled. As of December 31, 2016, restricted stock represented both non-vested restricted stock awards and restricted stock units. Our restricted stock awards generally vest thirty-three percent per year over a three -year period. The following table summarizes restricted stock activity under the 2015 Incentive Compensation Plan, for the year ended December 31, 2016: Number of Shares Weighted Average Grant Date Fair Value Per Share Restricted stock awards as of December 31, 2015 997,444 $11.71 Granted — — Vested (347,618 ) $11.73 Forfeited (127,384 ) $12.88 Restricted stock awards as of December 31, 2016 522,442 $10.65 If a participant's employment is terminated without cause prior to the vesting dates, the participant shall receive restricted stock on a pro-rata basis based on the fraction of the performance period that has elapsed from the beginning of the performance period until the participant's termination. Any unvested shares are forfeited and available for reissuance under the terms of the 2015 Incentive Compensation Plan. The fair value of our restricted stock is determined based on the quoted price of our common stock at the grant date. As of December 31, 2016 , there was $3.1 million in unrecognized compensation cost related to restricted stock. We expect this cost to be recognized over a weighted average period of 1.49 years. For the year ended December 31, 2016, the value of our vested restricted stock awards was immaterial. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have determined our reportable segment based on our method of internal reporting, which disaggregates our business by geographic location. We evaluate performance and provide resources to it based on operating income before depreciation, amortization and impairment, restructuring and other charges, which we refer to as segment earnings. Nextel Brazil is our only reportable segment. Brazil Corporate and Eliminations Consolidated (in thousands) Year Ended December 31, 2016 - Successor Company Operating revenues $ 984,878 $ 168 $ 985,046 Segment earnings (losses) $ 67,186 $ (36,821 ) $ 30,365 Less: Impairment, restructuring and other charges (1,384,811 ) Depreciation and amortization (172,383 ) Foreign currency transaction gains, net 76,615 Interest expense and other, net (85,754 ) Loss from continuing operations before reorganization items and income tax provision $ (1,535,968 ) Capital expenditures $ 51,307 $ — $ 51,307 Six Months Ended December 31, 2015 - Successor Company Operating revenues $ 529,332 $ 102 $ 529,434 Segment losses $ (15,925 ) $ (26,100 ) $ (42,025 ) Less: Impairment, restructuring and other charges (32,308 ) Depreciation and amortization (85,364 ) Foreign currency transaction losses, net (99,737 ) Interest expense and other, net (39,539 ) Loss from continuing operations before reorganization items and income tax provision $ (298,973 ) Capital expenditures $ 72,112 $ 500 $ 72,612 Six Months Ended June 30, 2015 - Predecessor Company Operating revenues $ 683,611 $ 100 $ 683,711 Segment losses $ (75,234 ) $ (37,982 ) $ (113,216 ) Less: Impairment, restructuring and other charges (36,792 ) Depreciation and amortization (153,878 ) Foreign currency transaction losses, net (63,948 ) Interest expense and other, net (67,630 ) Loss from continuing operations before reorganization items and income tax provision $ (435,464 ) Capital expenditures $ 68,385 $ 818 $ 69,203 Year Ended December 31, 2014 - Predecessor Company Operating revenues $ 1,848,918 $ 36 $ 1,848,954 Segment losses $ (133,691 ) $ (123,141 ) $ (256,832 ) Less: Impairment, restructuring and other charges (105,664 ) Depreciation and amortization (394,061 ) Foreign currency transaction losses, net (51,149 ) Interest expense and other, net (340,388 ) Loss from continuing operations before reorganization items and income tax provision $ (1,148,094 ) Capital expenditures $ 218,855 $ 14,507 $ 233,362 December 31, 2016 - Successor Company Identifiable assets $ 1,000,098 $ 418,411 $ 1,418,509 December 31, 2015 - Successor Company Identifiable assets $ 1,989,753 $ 740,155 $ 2,729,908 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (Unaudited) Successor Company First Second Third Fourth (in thousands, except per share amounts) 2016 Operating revenues $ 226,557 $ 249,213 $ 260,836 $ 248,440 Operating loss (54,064 ) (28,751 ) (1,386,696 ) (57,318 ) Net loss from continuing operations (32,807 ) (4,796 ) (1,411,554 ) (84,722 ) Net loss from discontinued operations (3,781 ) (5,075 ) (7,389 ) (3,749 ) Net loss from continuing operations, per common share, basic $ (0.33 ) $ (0.05 ) $ (14.10 ) $ (0.84 ) Net loss from discontinued operations, per common share, basic $ (0.04 ) $ (0.05 ) $ (0.07 ) $ (0.04 ) Net loss from continuing operations, per common share, diluted $ (0.33 ) $ (0.05 ) $ (14.10 ) $ (0.84 ) Net loss from discontinued operations, per common share, diluted $ (0.04 ) $ (0.05 ) $ (0.07 ) $ (0.04 ) Predecessor Company Successor Company First Second Third Fourth (in thousands, except per share amounts) 2015 Operating revenues $ 363,409 $ 320,302 $ 284,652 $ 244,782 Operating loss (105,811 ) (198,075 ) (77,652 ) (82,045 ) Net (loss) income from continuing operations (218,407 ) 1,737,808 (201,949 ) (90,542 ) Net (loss) income from discontinued operations (91,111 ) 312,225 12,528 (920 ) Net (loss) income from continuing operations, per common share, basic $ (1.27 ) $ 10.04 $ (2.02 ) $ (0.90 ) Net (loss) income from discontinued operations, per common share, basic $ (0.53 ) $ 1.80 $ 0.12 $ (0.01 ) Net (loss) income from continuing operations, per common share, diluted $ (1.27 ) $ 10.03 $ (2.02 ) $ (0.90 ) Net (loss) income from discontinued operations, per common share, diluted $ (0.53 ) $ 1.80 $ 0.12 $ (0.01 ) During 2016, we recorded a non-cash asset impairment charge of $1.34 billion to reduce the carrying values of Nextel Brazil's long-lived assets to their respective fair values. See Note 4 for more information on this impairment charge. In connection with the preparation of our condensed consolidated financial statements for the three months ended March 31, 2016, we determined that an error existed in our previously issued financial statements. Specifically, selling, general and administrative expenses for the fourth quarter of 2015 were understated by $6.9 million as the result of a failure to properly accrue expenses for services Nextel Brazil received under a management consulting services arrangement. As a result of the correction of this error, for the fourth quarter of 2015, operating loss and net loss from continuing operations increased by $6.9 million . In addition, for the fourth quarter of 2015, the correction of this error resulted in a $0.07 increase in both net loss from continuing operations per basic and diluted common share. The sum of the per share amounts do not equal the annual amounts due to changes in the number of weighted average common shares outstanding during the year. In September 2015, two of our indirect subsidiaries entered into a binding agreement with Grupo Clarin relating to the sale of all of the outstanding equity interests of Nextel Argentina. In April 2015, we completed the sale of our Mexican operations to New Cingular Wireless, Inc., an indirect subsidiary of AT&T, Inc. As a result of the sale of Nextel Argentina and Nextel Mexico, the quarterly amounts included above differ from the amounts originally included in our quarterly reports on Form 10-Q for each of the quarterly periods in 2015. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of the Registrant | NII HOLDINGS, INC. CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY) (in thousands) Successor Company December 31, December 31, ASSETS Current assets Cash and cash equivalents $ 54,101 $ 56,011 Short-term intercompany receivables 1,242 1,202 Prepaid expenses and other — 61 Total current assets 55,343 57,274 Intangible assets, net — 37,956 Long-term intercompany receivables 3,146 281 Investment in subsidiaries 112,503 4,752,755 Total assets $ 170,992 $ 4,848,266 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Short-term intercompany payables $ 4,570 $ 4,570 Total current liabilities 4,570 4,570 Long-term intercompany payables — 3,296,117 Other long-term liabilities 400 3,584 Total liabilities 4,970 3,304,271 Total stockholders’ equity 166,022 1,543,995 Total liabilities and stockholders’ equity $ 170,992 $ 4,848,266 NII HOLDINGS, INC. CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (PARENT COMPANY ONLY) (in thousands) Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 Operating revenues $ — $ — $ — $ — Operating expenses Selling, general and administrative — — 429 2,145 Impairment, restructuring and other charges 36,839 — — — Depreciation and amortization 1,116 744 — — 37,955 744 429 2,145 Operating loss (37,955 ) (744 ) (429 ) (2,145 ) Other (expense) income Interest expense, net — — (119 ) (570 ) Intercompany interest expense (117,078 ) (118,365 ) (159,117 ) (165,324 ) Interest income — — 37 691 Intercompany interest income 197 97 125 — Equity in (loss) income of affiliates (1,401,998 ) (167,324 ) 1,793,151 (1,805,438 ) Other (expense) income, net (206 ) (3 ) 995 8,212 (1,519,085 ) (285,595 ) 1,635,072 (1,962,429 ) (Loss) income before reorganization items and income tax benefit (1,557,040 ) (286,339 ) 1,634,643 (1,964,574 ) Reorganization items — (373 ) 68,355 (291 ) Income tax benefit (provision) 3,183 (448 ) (1,002 ) 7,167 Net (loss) income from continuing operations (1,553,857 ) (287,160 ) 1,701,996 (1,957,698 ) (Loss) income from discontinued operations, net of income taxes (16 ) 6,277 38,519 — Net (loss) income $ (1,553,873 ) $ (280,883 ) $ 1,740,515 $ (1,957,698 ) Comprehensive (loss) income, net of income taxes Foreign currency translation adjustment $ 169,785 $ (248,781 ) $ (205,899 ) $ (340,847 ) Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Chile — (1,672 ) 421,953 (33,885 ) Other — 4,734 2,956 (544 ) Other comprehensive income (loss) 169,785 (245,719 ) 219,010 (375,276 ) Net (loss) income (1,553,873 ) (280,883 ) 1,740,515 (1,957,698 ) Total comprehensive (loss) income $ (1,384,088 ) $ (526,602 ) $ 1,959,525 $ (2,332,974 ) NII HOLDINGS, INC. CONDENSED STATEMENTS OF CASH FLOWS (PARENT COMPANY ONLY) (in thousands) Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 Cash flows from operating activities: Net (loss) income $ (1,553,873 ) $ (280,883 ) $ 1,740,515 $ (1,957,698 ) Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities 1,554,075 280,910 (1,735,521 ) 1,861,773 Net cash provided by (used in) operating activities 202 27 4,994 (95,925 ) Cash flows from investing activities: Changes in restricted cash and escrow accounts — — — 25,300 Investments in subsidiaries (36,356 ) (29,690 ) (61,405 ) (180,712 ) Return of investments in subsidiaries 34,260 35,315 23 — Other, net (16 ) — — 1,856 Net cash (used in) provided by investing activities (2,112 ) 5,625 (61,382 ) (153,556 ) Cash flows from financing activities: Other, net — — — (86 ) Net cash used in financing activities — — — (86 ) Net (decrease) increase in cash and cash equivalents (1,910 ) 5,652 (56,388 ) (249,567 ) Cash and cash equivalents, beginning of period 56,011 50,359 106,747 356,314 Cash and cash equivalents, end of period $ 54,101 $ 56,011 $ 50,359 $ 106,747 1. Basis of Presentation NII Holdings, Inc., or NII Holdings, our parent company, is a holding company that conducts substantially all of its business operations through Nextel Brazil. See Note 1 to our consolidated financial statements for more information. As specified in Nextel Brazil's local financing agreements, there are restrictions on the parent company's ability to obtain funds from certain of its subsidiaries through dividends, loans or advances. These condensed financial statements have been presented on a "parent company only" basis. In accordance with this parent company only presentation, we have presented our parent company's investments in consolidated subsidiaries under the equity method. These condensed parent company only financial statements should be read in conjunction with our consolidated financial statements included elsewhere herein. 2. Dividends From Subsidiaries For the year ended December 31, 2016, NII Holdings' consolidated subsidiaries declared and paid $33.9 million in cash dividends to the parent company. NII Holdings' consolidated subsidiaries did not declare any dividends to the parent company during the six months ended December 31, 2015, the six months ended June 30, 2015 or during the year ended December 31, 2014. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | NII HOLDINGS, INC. AND SUBSIDIARIES SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Period Charged to Costs and Expenses Deductions and Other Adjustments (1) Balance at End of Period Year Ended December 31, 2016 — Successor Company Allowance for doubtful accounts $ 39,033 $ 77,883 $ (62,695 ) $ 54,221 Valuation allowance for deferred tax assets $ 5,290,813 $ 1,555,006 $ 99,225 $ 6,945,044 Six Months Ended December 31, 2015 — Successor Company Allowance for doubtful accounts $ — $ 32,279 $ 6,754 (2) $ 39,033 Valuation allowance for deferred tax assets $ 4,388,792 $ 1,010,438 $ (108,417 ) $ 5,290,813 Six Months Ended June 30, 2015 — Predecessor Company Allowance for doubtful accounts $ 30,749 $ 65,396 $ (96,145 ) (3) $ — Valuation allowance for deferred tax assets $ 4,447,133 $ 22,828 $ (81,169 ) $ 4,388,792 Year Ended December 31, 2014 — Predecessor Company Allowance for doubtful accounts $ 35,458 $ 57,418 $ (62,127 ) $ 30,749 Valuation allowance for deferred tax assets $ 4,145,002 $ 340,425 $ (38,294 ) $ 4,447,133 _______________________________________ (1) Includes the impact of foreign currency translation adjustments. (2) Includes the impact of cash collections subsequent to the implementation of fresh start accounting. (3) Includes the impact of a $50.6 million reduction to allowance for doubtful accounts resulting from the application of fresh start accounting. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Reorganization Accounting | Reorganization Accounting. In accordance with the requirements of reorganization accounting, NII Holdings adopted the provisions of fresh start accounting as of June 30, 2015 and became a new entity for financial reporting purposes. References to the "Successor Company" relate to NII Holdings on or subsequent to June 30, 2015. References to the "Predecessor Company" relate to NII Holdings prior to June 30, 2015. See Note 3 for more information regarding the implementation of fresh start accounting. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or the U.S., requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results to be reported in future periods could differ from our estimates. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of NII Holdings and our subsidiaries. Our decision to consolidate an entity is based on our control of the entity through direct and indirect majority interest in the entity. We eliminate all significant intercompany transactions, including intercompany profits and losses, in consolidation. |
Concentrations of Risk | Concentrations of Risk. Substantially all of our revenues are generated from our operations located in Brazil. Political, financial and economic developments in Brazil could impact the recoverability of our assets. Regulatory entities in Brazil regulate the licensing, construction, acquisition, ownership and operation of our networks, and certain other aspects of our business, including some of the rates we charge our subscribers. Changes in the current telecommunications statutes or regulations in Brazil could adversely affect our business. In addition, as of December 31, 2016, 71% of our total assets were owned by Nextel Brazil. Political, financial and economic developments in Brazil could impact the recoverability of our assets. Financial instruments that potentially subject us to significant amounts of credit risk consist of cash, cash equivalents, short-term investments and accounts receivable. Our cash and cash equivalents are deposited with high-quality financial institutions. At times, we maintain cash balances in excess of Federal Deposit Insurance Corporation (or the foreign country equivalent institution) limits. Our short-term investments are composed of investments in U.S. treasury securities, investments in corporate bonds and certain investments made by Nextel Brazil. See Note 8 for further information. Our accounts receivable are generally unsecured. We routinely assess the credit worthiness of our subscribers and maintain allowances for probable losses, where necessary. |
Foreign Currency | Foreign Currency. We translate Nextel Brazil's results of operations from Brazilian reais to U.S. dollars using average exchange rates during the relevant period, while we translate assets and liabilities at the exchange rate in effect at the reporting date. We translate equity balances at historical rates. We report the resulting gains or losses from translating foreign currency financial statements as other comprehensive income or loss. In general, monetary assets and liabilities held by Nextel Brazil that are denominated in U.S. dollars give rise to realized and unrealized foreign currency transaction gains and losses, which we record in our consolidated statement of comprehensive (loss) income as foreign currency transaction losses, net. We report the effects of changes in exchange rates associated with certain U.S. dollar-denominated intercompany loans and advances to our foreign subsidiaries that are of a long-term investment nature as other comprehensive income or loss in our consolidated financial statements. We have determined that certain U.S. dollar-denominated intercompany loans and advances to Nextel Brazil are of a long-term investment nature. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents, except for certain certificates of deposit in Brazil that are redeemable on demand. We classify these certificates of deposit as short-term investments. Cash equivalents primarily consist of money market funds and other similarly structured funds. |
Short-Term Investments | Short-Term Investments. We classify investments in debt securities as available-for-sale as of the balance sheet date and report them at fair value. We record unrealized gains and losses, net of income tax, as other comprehensive income or loss. We report realized gains or losses, as determined on a specific identification basis, and other-than-temporary declines in value, if any, in net other expense in our consolidated statement of comprehensive (loss) income. We assess declines in the value of individual investments to determine whether the decline is other-than-temporary and thus the investment is impaired. We make these assessments by considering available evidence, including changes in general market conditions, specific industry and individual company data, the length of time and the extent to which the market value has been less than cost, the financial condition and near-term prospects of the individual company and our intent and ability to hold the investment. As of December 31, 2016, the time deposits we held were not material. As of December 31, 2015, we had $9.3 million in time deposits. See Note 8 for additional information. |
Handset and Accessory Inventory | Handset and Accessory Inventory. We record handsets and accessories at the lower of cost or their net realizable value. We determine cost by the weighted average costing method. We expense handset costs at the time of sale and classify such costs in cost of handsets and accessories. Inventory cost includes amounts associated with non-income based taxes. We analyze the net realizable value of handset and accessory inventory on a periodic basis. This analysis includes an assessment of the obsolescence of individual devices, our sales forecasts and other factors. |
Property, Plant and Equipment | Property, Plant and Equipment. We record property, plant and equipment, including improvements that extend useful lives or enhance functionality, at cost, while we charge maintenance and repairs to expense as incurred. We capitalize internal and external costs incurred to develop internal-use software, which consist primarily of costs related to configuration, interfaces, installation and testing. We also capitalize internal and external costs incurred to develop specified upgrades and enhancements if they result in significant additional functionalities for our existing software. We expense all costs related to evaluation of software needs, data conversion, training, maintenance and other post-implementation operating activities. We calculate depreciation using the straight-line method based on estimated useful lives ranging from 3 to 30 years for network equipment, communication towers and network software and 3 to 10 years for software, office equipment, furniture and fixtures, and other, which includes non-network internal use software. We include depreciation expense on our capital leases in accumulated depreciation. We amortize leasehold improvements over the shorter of the lease terms or the useful lives of the improvements. Construction in progress includes internal and external labor, materials, transmission and related equipment, engineering, site development, interest and other costs relating to the construction and development of our wireless network. We do not depreciate assets under construction until they are ready for their intended use. We capitalize interest and other costs, including labor and software upgrades, which are applicable to the construction of, and significant improvements that enhance functionality to, our network equipment. As of June 30, 2015, in connection with the implementation of fresh start accounting, we adjusted our property, plant and equipment to its estimated fair value and revised the depreciable lives. We will continue to periodically review the depreciation method, useful lives and estimated salvage value of our property, plant and equipment and revise those estimates if current estimates are significantly different from previous estimates. |
Asset Retirement Obligations | Asset Retirement Obligations. We record an asset retirement obligation, or ARO, and an associated asset retirement cost, or ARC, when we have a legal obligation in connection with the retirement of tangible long-lived assets. Our obligations arise from certain of our leases and relate primarily to the cost of removing our communication towers and network equipment from leased sites. We recognize an ARO, and the associated ARC, in the period in which it is incurred at fair value computed using discounted cash flow techniques. The liability is then accreted over time until the obligation is settled and the ARC is depreciated over the useful life of the related assets. We make adjustments for changes to either the timing or amount of the estimated future settlement obligation in the period incurred. We recognize increases in the present value of the AROs as an additional liability and add this amount to the carrying amount of the associated ARC. We record decreases as a reduction in both the recorded liability and the carrying amount of the associated ARC. As of June 30, 2015, in connection with the implementation of fresh start accounting, we adjusted our AROs to their estimated fair value. |
Derivative Financial Instruments | Derivative Financial Instruments. We occasionally enter into derivative transactions for hedging or risk management purposes. We have not and will not enter into any derivative transactions for speculative or profit generating purposes. See Note 8 for additional information. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets. We review long-lived assets such as property, plant and equipment and identifiable intangible assets with definite useful lives, which include our telecommunications licenses, for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the total of the expected undiscounted future cash flows of the asset or asset group is less than the carrying amount of the asset, we recognize a loss, if any, for the difference between the fair value and carrying value of the asset. |
Intangible Assets | Intangible Assets. Prior to our emergence from Chapter 11, intangible assets primarily consisted of our telecommunications licenses. We amortize our intangible assets using the straight-line method over the estimated benefit period. As a result of the implementation of fresh start accounting in connection with our emergence from Chapter 11, we recorded our intangible assets, which consisted of our telecommunications licenses, our exclusive right to use the Nextel tradename in Brazil and our customer relationships, at their estimated fair values. We calculate amortization on our licenses using the straight-line method based on an estimated useful life of 26 to 30 years. We calculate amortization on our customer relationships using the straight-line method based on an estimated useful life of 4 years. In Brazil, licenses are customarily issued conditionally for specified periods of time ranging from 10 to 40 years, including renewals. In addition, the wireless telecommunications industry is experiencing significant technological change, and the commercial life of any particular technology is difficult to predict. In light of these uncertainties, we classify our licenses as definite lived intangible assets. In connection with the implementation of fresh start accounting, we revised the remaining estimated useful lives of our licenses to include renewal periods in cases where it is probable that a renewal will occur. |
Revenue Recognition | Revenue Recognition. Operating revenues primarily consist of wireless service revenues and revenues generated from the sale of handsets and accessories. We present our operating revenues net of value-added taxes, but we include certain revenue-based taxes that are our primary obligation. Service revenues primarily consist of fixed monthly access charges. Other components of service revenue include revenues from calling party pays programs, where applicable, variable charges for airtime usage in excess of plan minutes, long-distance charges, international roaming revenues derived from calls placed by our subscribers on other carriers’ networks and revenues generated from broadband data services we provide on our WCDMA network, net of credits and adjustments for service discounts and value-added taxes. We recognize excess usage, local, long distance and calling party pays revenue at contractual rates per minute as minutes are used. We record cash received in excess of revenues earned as deferred revenues. We recognize service revenue as service is provided. We recognize handset revenue when title and risk of loss passes to the customer. Other revenues primarily include amounts generated from our handset maintenance programs, roaming revenues generated from other companies’ subscribers that roam on our networks and co-location rental revenues from third party tenants that rent space on our towers. We recognize revenue generated from our handset maintenance programs on a monthly basis at fixed amounts over the service period. We recognize roaming revenues at contractual rates per minute as minutes are used. We recognize co-location revenues from third party tenants on a monthly basis based on the terms set by the underlying agreements. |
Revenue-Based Taxes | Revenue-Based Taxes. We record revenue-based taxes and other excise taxes on a gross basis as a component of both service and other revenues and selling, general and administrative expenses in our consolidated financial statements. |
Accounts Receivable | Accounts Receivable. Accounts receivable represents amounts due from subscribers, net of an allowance for doubtful accounts, and includes amounts that have been billed to customers and amounts that have not yet been billed. Trade accounts receivable consists of fixed monthly charges, as well as charges for excess and roaming minutes used in arrears. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts. We establish an allowance for doubtful accounts receivable sufficient to cover probable and reasonably estimated losses. We estimate this allowance based on historical experience, aging of accounts receivable and recent collections trends. While we believe that the estimates we use are reasonable, actual results could differ from those estimates. |
Subscriber Related Costs | Subscriber Related Direct Costs. We recognize all costs of handset sales when title and risk of loss passes upon delivery of the handset to the subscriber. |
Advertising Costs | Advertising Costs. We expense costs related to advertising and other promotional expenditures as incurred. |
Share-based Compensation | Share-Based Compensation. We measure and recognize compensation expense for all share-based compensation awards based on estimated fair values. We account for share-based awards exchanged for employee services in accordance with the authoritative guidance for stock compensation. Under that guidance, share-based compensation expense is measured at the grant date, based on the estimated fair value of the award when settled in shares, and is recognized over the employee's requisite service period. Compensation expense is amortized on a straight-line basis over the requisite service period for the entire award, which is generally the maximum vesting period of the award. See Note 12 for more information. |
Net (Loss) Income Per Common Share, Basic and Diluted | Net (Loss) Income Per Common Share, Basic and Diluted. Basic net (loss) income per common share is computed by dividing adjusted net (loss) income attributable to common shares by the weighted average number of common shares outstanding for the period. Diluted net (loss) income per common share reflects the potential dilution of securities that could participate in our earnings, but not securities that are antidilutive, including stock options with an exercise price greater than the average market price of our common stock. Our unvested restricted stock awards, or RSAs, contain non-forfeitable rights to dividends, whether paid or unpaid. As a result, our RSAs are considered participating securities because their holders have the right to participate in earnings with common stockholders. We use the two-class method to allocate net income between common shares and other participating securities. |
Income Taxes | Income Taxes. We account for income taxes using the asset and liability method, under which we recognize deferred income taxes for the tax consequences attributable to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities, as well as for tax loss carryforwards and tax credit carryforwards. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. We recognize the effect on deferred taxes of a change in tax rates in income in the period that includes the enactment date. We recognize a valuation allowance on deferred tax assets unless it is determined that it is “more-likely-than-not” that the asset will be realized. |
Reclassifications | Reclassifications. We have reclassified some prior period amounts in our consolidated financial statements to conform to our current presentation. |
New Accounting Pronouncements | New Accounting Pronouncements. In November 2016, the Financial Accounting Standards Board, or the FASB, issued Accounting Standard Update, or ASU, No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which provides guidance regarding cash flow statement classification and presentation of changes in restricted cash. The new standard will be effective for interim and annual reporting periods beginning on January 1, 2018, with early adoption permitted. The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile this total to amounts on the consolidated balance sheet and disclose the nature of the restrictions. We are currently evaluating the timing of adoption, as well as the effect ASU No. 2016-18 will have on our consolidated statement of cash flows. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," which replaces existing leasing rules with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. ASU No. 2016-02 will require lessees to recognize most leases on their balance sheet as liabilities, with corresponding "right-of-use" assets, and is effective for interim and annual reporting periods beginning after December 15, 2018, subject to early adoption. The new standard allows us to make an accounting policy election not to recognize lease assets and liabilities on the balance sheet for leases with a term of 12 months or less. The accounting applied by a lessor is largely unchanged from previous guidance. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply. We are currently evaluating the timing of adoption, as well as the effect ASU No. 2016-02 will have on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers," which will provide us with a single revenue recognition model for recognizing revenue from contracts with customers and significantly expand the disclosure requirements for revenue arrangements. The new standard, as amended, will be effective for interim and annual reporting periods beginning on January 1, 2018, at which point we plan to adopt the standard. The two permitted transition methods under the new standard are the full retrospective method, in which the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application, with disclosure of results under the new and old standards for the first year of adoption. We are in the process of evaluating the available adoption methods. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Asset Retirement Obligations | As of December 31, 2016 and 2015 , our asset retirement obligations were as follows (in thousands): Balance, January 1, 2015 — Predecessor Company 19,177 New asset retirement obligations 350 Accretion 1,321 Settlement of asset retirement obligations (168 ) Foreign currency translation and other (2,011 ) Balance, June 30, 2015 — Predecessor Company 18,669 Fresh start adjustments 5,024 Balance, July 1, 2015 — Successor Company 23,693 New asset retirement obligations 547 Accretion 1,688 Settlement of asset retirement obligations (1,337 ) Foreign currency translation and other (4,949 ) Balance, December 31, 2015 — Successor Company 19,642 New asset retirement obligations 198 Change in assumptions (1,619 ) Accretion 2,552 Settlement of asset retirement obligations (441 ) Foreign currency translation and other 7,274 Balance, December 31, 2016 — Successor Company $ 27,606 |
Emergence From Chapter 11 Pro25
Emergence From Chapter 11 Proceedings and Fresh Start Accounting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reorganizations [Abstract] | |
Schedule of Fresh-Start Adjustments | The following is a reconciliation of the Successor Company's equity value to its reorganization value as of June 30, 2015 (in thousands): Fair value of Successor Company's common stock $ 2,067,665 Fair value of debt 774,616 Fair value of other liabilities 638,916 Reorganization value of Successor Company's assets $ 3,481,197 Predecessor Company Reorganization Adjustments Fresh Start Adjustments Successor Company June 30, 2015 July 1, 2015 (in thousands) ASSETS Current assets Cash and cash equivalents $ 1,199,441 $ (776,306 ) (a) $ — $ 423,135 Short-term investments 97,395 — — 97,395 Accounts receivable, net 174,649 — — 174,649 Handset and accessory inventory 49,835 — — 49,835 Prepaid expenses and other 159,346 — (19,494 ) (d) 139,852 Assets related to discontinued operations 242,487 — — 242,487 Total current assets 1,923,153 (776,306 ) (19,494 ) 1,127,353 Property, plant and equipment, net 1,079,947 — (376,519 ) (e) 703,428 Intangible assets, net 571,076 — 562,702 (f) 1,133,778 Other assets 516,235 — (18,739 ) (g) 497,496 Assets related to discontinued operations 32,246 — (13,104 ) (h) 19,142 Total assets $ 4,122,657 $ (776,306 ) $ 134,846 $ 3,481,197 LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY Liabilities not subject to compromise Current liabilities Accounts payable $ 102,317 $ — $ — $ 102,317 Accrued expenses and other 323,480 — (2,677 ) (i) 320,803 Deferred revenues 17,908 — (1,805 ) (j) 16,103 Current portion of long-term debt 667,617 — 2,616 (k) 670,233 Liabilities related to discontinued operations 96,161 — (1,727 ) (h) 94,434 Total current liabilities 1,207,483 — (3,593 ) 1,203,890 Long-term debt 176,738 — (72,355 ) (k) 104,383 Other long-term liabilities 149,632 — (56,541 ) (l) 93,091 Liabilities related to discontinued operations 5,763 — 6,405 (h) 12,168 Total liabilities not subject to compromise 1,539,616 — (126,084 ) 1,413,532 Liabilities subject to compromise 4,591,452 (4,591,452 ) (b) — — Stockholders’ (deficit) equity Undesignated preferred stock - Successor Company — — — — Undesignated preferred stock - Predecessor Company — — — — Common stock - Successor Company — 100 (b) — 100 Common stock - Predecessor Company 172 (172 ) (c) — — Paid-in capital - Successor Company — 2,067,565 (b) — 2,067,565 Paid-in capital - Predecessor Company 1,522,320 (1,522,320 ) (c) — — Accumulated deficit (2,418,560 ) 3,269,973 (c) (851,413 ) (m) — Accumulated other comprehensive loss (1,112,343 ) — 1,112,343 (m) — Total stockholders’ (deficit) equity (2,008,411 ) 3,815,146 260,930 2,067,665 Total liabilities and stockholders’ (deficit) equity $ 4,122,657 $ (776,306 ) $ 134,846 $ 3,481,197 Our condensed consolidated balance sheet as of July 1, 2015 presented above reflects the effect of the following adjustments: (a) Reflects cash payments made in connection with the implementation of the Plan of Reorganization (in thousands): Claims paid to senior noteholders $ 745,221 Payments to other creditors 2,779 Total claims paid 748,000 Reorganization-related professional fees 28,306 Total cash payments $ 776,306 (b) Represents the cancellation of debt and related transactions in connection with the implementation of the Plan of Reorganization on the Emergence Date. In accordance with the Plan of Reorganization, we distributed cash and shares of new common stock to holders of claims. The following table reflects the calculation of the total gain on the settlement of our liabilities subject to compromise (in thousands): Total Predecessor Company liabilities subject to compromise $ 4,591,452 Less: Common stock, Successor (at par) (100 ) Paid-in-capital, Successor (2,067,565 ) Total claims paid (748,000 ) Gain on settlement of liabilities subject to compromise $ 1,775,787 (c) Reflects the cumulative impact of the reorganization adjustments discussed above. Additionally, these adjustments reflect the cancellation of the Predecessor Company's common stock and paid-in capital to accumulated deficit (in thousands): Gain on settlement of liabilities subject to compromise $ 1,775,787 Reorganization-related professional fees (28,306 ) Net gain on reorganization adjustments 1,747,481 Cancellation of Predecessor Company equity 1,522,492 Net impact to accumulated deficit $ 3,269,973 (d) Represents the write-off of unamortized debt issuance costs primarily related to Nextel Brazil's equipment financing facility and local bank loans. (e) Reflects the impact of fresh start adjustments on property, plant and equipment in Nextel Brazil and our corporate segment. We measured the fair value of property, plant and equipment using the cost approach as the primary method. The cost approach is based on the premise that a prudent investor would pay no more for an asset than its replacement or reproduction cost. The cost to replace the asset would include the cost of constructing a similar asset of equivalent utility at prices applicable at the time of the valuation analysis. The replacement or reproduction cost estimates were adjusted by losses in value attributable to physical deterioration, as well as functional and economic obsolescence. The following reflects the impact of fresh start adjustments (in thousands): Consolidated Predecessor Company Fresh Start Adjustments Successor Company Land $ 3,341 $ — $ 3,341 Leasehold improvements 35,515 (20,188 ) 15,327 Network equipment, communication towers and network software 1,819,759 (1,291,712 ) 528,047 Software, office equipment, furniture and fixtures and other 342,210 (261,342 ) 80,868 Less: Accumulated depreciation and amortization (1,207,834 ) 1,207,834 — 992,991 (365,408 ) 627,583 Construction in progress 86,956 (11,111 ) 75,845 $ 1,079,947 $ (376,519 ) $ 703,428 (f) Reflects the impact of fresh start adjustments on our intangible assets (in thousands): Nextel Brazil Predecessor Company Fresh Start Adjustments Successor Company Licenses $ 553,076 $ 513,002 $ 1,066,078 Customer relationships — 29,000 29,000 In Brazil, our spectrum holdings include 20 megahertz, or MHz, of 1.9 gigahertz, or GHz,/2.1 GHz spectrum and 20 MHz of 1.8 GHz spectrum that support our WCDMA network and, in Rio de Janeiro, our LTE network. We also have spectrum holdings in the 800 MHz specialized mobile radio, or SMR, spectrum band that currently can only be used to support our iDEN network. We valued Nextel Brazil's spectrum licenses using both the income approach and the market approach. The resulting value of these licenses was similar to the prices observed for comparable licenses in Brazil in recent guideline transactions. Our income approach used the Greenfield method specifically, whereby we estimated the discounted future cash flows of a hypothetical start-up business, based on certain assumptions, including: (i) forecasted revenues, profit margins, capital expenditures and cash flows attributable to the spectrum for the period from July 1, 2015 to June 1, 2041. This date represents the end of the current term of our spectrum licenses, including renewals solely at our option; and (ii) a discount rate of 16.5% , which is based on an after-tax weighted average cost of capital. We valued our customer relationships using the excess earnings method, which is a form of the income approach, by estimating the discounted future cash flows attributable to existing subscribers. This estimation was based on certain assumptions, including: (i) forecasted revenues and cash flows attributable to the current subscriber base beginning on July 1, 2015; (ii) a churn rate ranging from 1.9% to 2.6% ; and (iii) a discount rate of 16.5% , based on an after-tax weighted average cost of capital. Corporate Predecessor Company Fresh Start Adjustments Successor Company Trade name 18,000 20,700 38,700 Our trade name represents the right to use the Nextel name exclusively in our markets. We valued our trade name using the relief from royalty method, a form of the income approach that estimates the amount a market participant would pay to utilize that trade name, based on certain assumptions, including (i) forecasted revenues attributable to the trade name from July 1, 2015 to June 1, 2041; (ii) a royalty rate of 0.25% of expected revenues determined with regard to comparable market transactions; and (iii) a discount rate of 16.5% , which was based on an after-tax weighted average cost of capital. (g) Represents a $13.5 million decrease in non-income based tax assets to reduce their values to their estimated fair values based on discounted cash flows to reflect the timing of their anticipated realization and a $5.2 million write-off of prepaid rent. (h) Represents the net change in assets and liabilities related to Nextel Argentina as a result of remeasurement to their respective fair values. (i) Represents the write-off of unamortized deferred gains related to the 2013 tower transactions. (j) Represents the revaluation of deferred revenues to the fair value of related future performance obligations. (k) Adjustments to Nextel Brazil's debt balances related to the remeasurement of its equipment financing facility, local bank loans, tower financings and capital lease obligations to their fair values were as follows (in thousands): Nextel Brazil Predecessor Company Fresh Start Adjustments Successor Company Brazil equipment financing $ 366,937 $ (2,989 ) $ 363,948 Brazil bank loans 294,322 9,987 304,309 Brazil capital lease and tower financing obligations 182,108 (76,737 ) 105,371 Other 988 — 988 Total debt 844,355 (69,739 ) 774,616 Less: current portion (667,617 ) (2,616 ) (670,233 ) $ 176,738 $ (72,355 ) $ 104,383 (l) Primarily represents the $61.3 million write-off of unamortized deferred gains related to the 2013 tower transactions and a $5.4 million increase related to the remeasurement of asset retirement obligations to their fair values. (m) Reflects the cumulative impact of all fresh start adjustments and the elimination of the Predecessor Company’s accumulated other comprehensive loss as follows (in thousands): Intangible asset fair value adjustment $ 562,702 Property, plant and equipment fair value adjustment (376,519 ) Debt fair value adjustment 69,739 Write-off of unamortized deferred gains on 2013 tower transactions 63,940 Other (58,090 ) Net gain on fresh start fair value adjustments 261,772 Tax impact of fresh start adjustments (842 ) Elimination of Predecessor Company's accumulated other comprehensive loss (1,112,343 ) Net impact on accumulated deficit $ (851,413 ) |
Cash Payments Related to Reorganization | Reflects cash payments made in connection with the implementation of the Plan of Reorganization (in thousands): Claims paid to senior noteholders $ 745,221 Payments to other creditors 2,779 Total claims paid 748,000 Reorganization-related professional fees 28,306 Total cash payments $ 776,306 |
Gain on Settlement of Liabilities Subject to Compromise | The following table reflects the calculation of the total gain on the settlement of our liabilities subject to compromise (in thousands): Total Predecessor Company liabilities subject to compromise $ 4,591,452 Less: Common stock, Successor (at par) (100 ) Paid-in-capital, Successor (2,067,565 ) Total claims paid (748,000 ) Gain on settlement of liabilities subject to compromise $ 1,775,787 |
Cumulative Impact of Reorganization Adjustments | Additionally, these adjustments reflect the cancellation of the Predecessor Company's common stock and paid-in capital to accumulated deficit (in thousands): Gain on settlement of liabilities subject to compromise $ 1,775,787 Reorganization-related professional fees (28,306 ) Net gain on reorganization adjustments 1,747,481 Cancellation of Predecessor Company equity 1,522,492 Net impact to accumulated deficit $ 3,269,973 |
Impact of Fresh Start Adjustments on Property, Plant and Equipment | The following reflects the impact of fresh start adjustments (in thousands): Consolidated Predecessor Company Fresh Start Adjustments Successor Company Land $ 3,341 $ — $ 3,341 Leasehold improvements 35,515 (20,188 ) 15,327 Network equipment, communication towers and network software 1,819,759 (1,291,712 ) 528,047 Software, office equipment, furniture and fixtures and other 342,210 (261,342 ) 80,868 Less: Accumulated depreciation and amortization (1,207,834 ) 1,207,834 — 992,991 (365,408 ) 627,583 Construction in progress 86,956 (11,111 ) 75,845 $ 1,079,947 $ (376,519 ) $ 703,428 |
Impact of Fresh Start Adjustments on Intangibles | Corporate Predecessor Company Fresh Start Adjustments Successor Company Trade name 18,000 20,700 38,700 Reflects the impact of fresh start adjustments on our intangible assets (in thousands): Nextel Brazil Predecessor Company Fresh Start Adjustments Successor Company Licenses $ 553,076 $ 513,002 $ 1,066,078 Customer relationships — 29,000 29,000 |
Impact of Adjustments on Nextel Brazil Debt [Table Text Block] | Adjustments to Nextel Brazil's debt balances related to the remeasurement of its equipment financing facility, local bank loans, tower financings and capital lease obligations to their fair values were as follows (in thousands): Nextel Brazil Predecessor Company Fresh Start Adjustments Successor Company Brazil equipment financing $ 366,937 $ (2,989 ) $ 363,948 Brazil bank loans 294,322 9,987 304,309 Brazil capital lease and tower financing obligations 182,108 (76,737 ) 105,371 Other 988 — 988 Total debt 844,355 (69,739 ) 774,616 Less: current portion (667,617 ) (2,616 ) (670,233 ) $ 176,738 $ (72,355 ) $ 104,383 |
Impact of Adjustments on Accumulated Comprehensive Other Income (Loss) | Reflects the cumulative impact of all fresh start adjustments and the elimination of the Predecessor Company’s accumulated other comprehensive loss as follows (in thousands): Intangible asset fair value adjustment $ 562,702 Property, plant and equipment fair value adjustment (376,519 ) Debt fair value adjustment 69,739 Write-off of unamortized deferred gains on 2013 tower transactions 63,940 Other (58,090 ) Net gain on fresh start fair value adjustments 261,772 Tax impact of fresh start adjustments (842 ) Elimination of Predecessor Company's accumulated other comprehensive loss (1,112,343 ) Net impact on accumulated deficit $ (851,413 ) |
Components of Reorganization Items | The components of our reorganization items were as follows (in thousands): Successor Company Predecessor Company Year Ended Six Months Ended Six Months Ended Year Ended December 31, 2016 December 31, 2015 June 30, 2015 December 31, 2014 Gain on settlement of liabilities subject to compromise $ — $ — $ 1,775,787 $ — Net gain on fresh start fair value adjustments — — 261,772 — Reorganization-related professional fees and other costs (803 ) 1,467 (80,685 ) (71,601 ) Total reorganization items $ (803 ) $ 1,467 $ 1,956,874 $ (71,601 ) |
Impairments, Restructuring an26
Impairments, Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Charges | Total impairment, restructuring and other charges were as follows (in thousands): Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 Brazil $ 1,340,610 $ 23,968 $ 28,072 $ 42,271 Corporate 44,201 8,340 8,720 63,393 Total impairment, restructuring and other charges $ 1,384,811 $ 32,308 $ 36,792 $ 105,664 |
Restructuring and Related Costs | In addition, as of December 31, 2016, the total of our accrued restructuring charges was as follows (in thousands): Balance, January 1, 2016 — Successor Company $ 16,859 Restructuring and other charges 35,358 Cash payments (30,569 ) Foreign currency translation adjustment 2,455 Balance, December 31, 2016 — Successor Company $ 24,103 |
Supplemental Financial Statem27
Supplemental Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Components of Prepaid Expenses and Other | The components of our prepaid expenses and other are as follows: Successor Company December 31, 2016 2015 (in thousands) Cash in escrow $ 163,435 $ 6,000 Cash collateral related to performance bonds 30,928 47,450 Value-added taxes 29,829 33,467 Prepayment for roaming and RAN sharing agreements 27,731 20,556 Other prepaid assets 23,020 11,934 Other current assets 5,202 13,127 $ 280,145 $ 132,534 |
Components of Property, Plant and Equipment | The components of our property, plant and equipment, net are as follows: Successor Company December 31, 2016 2015 (in thousands) Land $ 675 $ 2,655 Building and leasehold improvements 1,489 11,765 Network equipment, communication towers and network software 95,298 492,814 Software, office equipment, furniture and fixtures and other 10,952 65,747 Less: Accumulated depreciation and amortization — (59,987 ) 108,414 512,994 Construction in progress 21,061 42,029 $ 129,475 $ 555,023 |
Schedule of Finite-Lived Intangible Assets | Our intangible assets, net include the following: Successor Company December 31, 2016 December 31, 2015 Average Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Amortizable intangible assets: Licenses 26 $ 226,426 $ — $ 226,426 $ 850,818 $ (16,314 ) $ 834,504 Tradename 26 — — — 38,700 (744 ) 37,956 Customer relationships 4 17,255 — 17,255 23,042 (2,880 ) 20,162 $ 243,681 $ — $ 243,681 $ 912,560 $ (19,938 ) $ 892,622 |
Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the carrying amount of our intangible assets as of December 31, 2016 and current exchange rates, we estimate amortization expense for each of the next five years to be as follows (in thousands): Y ears Estimated Amortization Expense 2017 $ 15,922 2018 15,922 2019 12,471 2020 9,020 2021 9,020 |
Components of Accrued Expenses and Other | The components of our accrued expenses and other are as follows: Successor Company December 31, 2016 2015 (in thousands) Contingencies $ 54,260 $ 49,507 Network system and information technology 50,286 32,079 Payroll related items and commissions 45,187 31,734 Non-income based taxes 28,158 33,097 Capital expenditures 17,514 25,182 Other 76,494 97,259 $ 271,899 $ 268,858 |
Schedule of Other Assets | The components of our other long-term assets are as follows: Successor Company December 31, 2016 2015 (in thousands) Restricted cash $ 85,123 $ 275,235 Cash collateral related to performance bonds 56,523 94,236 Prepayment for roaming and RAN sharing agreements 37,433 — Equity interest in Nextel Argentina — 108,148 Other 92,789 76,622 $ 271,868 $ 554,241 |
Schedule of Restricted Cash and Cash Equivalents | The components of our restricted cash are as follows: Successor Company December 31, 2016 2015 (in thousands) Cash in escrow — Nextel Mexico sale $ 163,435 $ 186,593 Brazil judicial deposits 85,123 54,289 Cash in escrow — Nextel Peru sale — 34,353 Cash in escrow — Nextel Argentina sale — 6,000 $ 248,558 $ 281,235 |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Information. Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 (in thousands) Capital expenditures Cash paid for capital expenditures, including capitalized interest $ 61,291 $ 76,630 $ 88,485 $ 326,246 Change in capital expenditures accrued and unpaid or financed, including accreted interest capitalized (9,984 ) (4,018 ) (19,282 ) (92,884 ) $ 51,307 $ 72,612 $ 69,203 $ 233,362 Interest costs Interest expense, net $ 113,732 $ 55,563 $ 82,820 $ 372,904 Interest capitalized 283 2,142 2,556 27,712 $ 114,015 $ 57,705 $ 85,376 $ 400,616 Cash paid for interest, net of amounts capitalized $ 105,636 $ 59,914 $ 65,598 $ 261,161 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Major Components of Loss from Discontinued Operations, Assets and Liabilities Classified as Held for Sale | The major components of income (loss) from discontinued operations related to Nextel Argentina, Nextel Mexico, Nextel Chile and Nextel Peru were as follows (in thousands): Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 Operating revenues $ — $ 75,450 $ 599,038 $ 1,878,362 Operating expenses — (60,863 ) (675,245 ) (2,423,218 ) Other income (expense), net — 1,159 (49,974 ) (148,641 ) Income (loss) before income tax provision — 15,746 (126,181 ) (693,497 ) Income tax provision — (4,770 ) (8,065 ) (69,115 ) — 10,976 (134,246 ) (762,612 ) (Loss) income on disposal of Nextel Argentina, Nextel Mexico, Nextel Chile and Nextel Peru (19,994 ) 632 355,360 29,585 (Loss) income from discontinued operations, net of income taxes $ (19,994 ) $ 11,608 $ 221,114 $ (733,027 ) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | The components of our debt are as follows: Successor Company December 31, 2016 2015 (in thousands) Brazil equipment financing $ 291,597 $ 339,850 Brazil bank loans 242,076 240,396 Brazil spectrum financing 125,684 — Brazil capital lease and tower financing obligations 96,722 84,295 Other 237 526 Total debt 756,316 665,067 Less: current portion (540,474 ) (582,420 ) $ 215,842 $ 82,647 |
Annual Maturities of Long Term Debt Outstanding | For the years subsequent to December 31, 2016 , scheduled annual maturities of all debt outstanding are as follows (in thousands): Year Principal Repayments 2017 $ 535,972 2018 4,129 2019 21,961 2020 22,836 2021 23,833 Thereafter 144,843 Total $ 753,574 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Debt | The carrying amounts and estimated fair values of our debt instruments are as follows: December 31, 2016 2015 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (in thousands) Brazil equipment financing $ 291,597 $ 280,893 $ 339,850 $ 340,189 Bank loans and other 242,313 221,458 240,922 229,366 Brazil spectrum financing 125,684 117,059 — — $ 659,594 $ 619,410 $ 580,772 $ 569,555 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments for Capital and Operating Lease Obligations | For years subsequent to December 31, 2016 , future minimum payments for all capital and operating lease obligations that have initial or remaining noncancelable lease terms exceeding one year, net of rental income, are as follows (in thousands): Capital Leases Operating Leases Total 2017 $ 55,708 $ 126,011 $ 181,719 2018 47,269 112,167 159,436 2019 41,397 103,531 144,928 2020 41,613 94,241 135,854 2021 41,519 85,644 127,163 Thereafter 631,216 203,718 834,934 Total minimum lease payments 858,722 725,312 1,584,034 Less: imputed interest (762,000 ) — (762,000 ) Total $ 96,722 $ 725,312 $ 822,034 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Income From Continuing Operations Before Income Taxes | The components of (loss) income from continuing operations before income taxes and the related income tax benefit (provision) are as follows (in thousands): Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 U.S. $ (53,843 ) $ (1,820 ) $ 1,745,628 $ (340,545 ) Non-U.S. (1,482,928 ) (295,686 ) (224,218 ) (879,150 ) Total $ (1,536,771 ) $ (297,506 ) $ 1,521,410 $ (1,219,695 ) |
Income Tax Provision | Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 Current: Federal $ — $ — $ — $ — Foreign (291 ) 2,502 (1,104 ) (2,924 ) Total current income tax (provision) benefit (291 ) 2,502 (1,104 ) (2,924 ) Deferred: Federal 2,864 (403 ) (814 ) (1,846 ) State, net of Federal tax benefit (provision) 319 (45 ) (91 ) (206 ) Foreign — 2,961 — — Total deferred income tax benefit (provision) 3,183 2,513 (905 ) (2,052 ) Total income tax benefit (provision) $ 2,892 $ 5,015 $ (2,009 ) $ (4,976 ) |
Reconciliation of the U.S. Statutory Federal Income Tax Rate to Effective Tax Rate | A reconciliation of the U.S. statutory Federal income tax rate to our effective tax rate as a percentage of (loss) income from continuing operations before income tax benefit (provision) is as follows: Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 Statutory Federal tax rate 35% 35% 35% 35% Reorganization items — — (46) — Effect of foreign operations (2) (12) — (2) Change in deferred tax asset valuation allowance (32) (20) 9 (35) Other, net (1) (1) 2 2 Effective tax rate — 2% — — |
Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities consist of the following: Successor Company December 31, 2016 2015 (in thousands) Deferred tax assets: Net operating losses and capital loss carryforwards $ 6,363,915 $ 5,094,306 Allowance for doubtful accounts 17,867 13,644 Accrued expenses 54,263 54,823 Accrual for contingent liabilities 24,669 18,413 Intangible assets 130,983 — Property, plant and equipment 253,882 147,774 Leasing related activity 25,822 3,543 Equity compensation 1,182 701 Long term debt 53,159 68,159 Inventory reserve 1,729 1,982 Other 17,573 34,033 6,945,044 5,437,378 Valuation allowance (6,945,044 ) (5,290,813 ) Total deferred tax asset — 146,565 Deferred tax liabilities: Intangible assets — 149,749 Total deferred tax liability — 149,749 Net deferred tax liability $ — $ (3,184 ) |
Deferred Tax Asset Valuation Allowance | The deferred tax asset valuation allowances that our subsidiaries and holding companies had as of December 31, 2016 and 2015 are as follows: Successor Company 2016 2015 (in millions) Brazil $ 1,089.9 $ 500.8 U.S. 367.2 359.8 Luxembourg 5,275.9 4,216.0 Spain 212.0 214.2 Total $ 6,945.0 $ 5,290.8 |
Employee Stock and Benefit Pl33
Employee Stock and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Summary of Stock Option Activity Under All Plans | The following table summarizes stock option activity under the 2015 Incentive Compensation Plan: Number of Options Weighted Average Exercise Price per Option Weighted Average Remaining Life Aggregate Intrinsic Value Outstanding, December 31, 2015 3,627,489 $ 11.53 Granted 553,280 $ 3.83 Exercised — — Forfeited (904,664 ) $ 11.86 Outstanding, December 31, 2016 3,276,105 $ 10.14 7.74 — Exercisable, December 31, 2016 997,926 $ 10.80 6.94 — |
Assumptions in Option Pricing Model | The weighted average fair value of the stock option awards on their grant dates using the Black-Scholes-Merton option-pricing model was $1.48 for each option granted during the year ended December 31, 2016 and $2.98 for the period from June 26, 2015 to December 31, 2015, based on the following assumptions: Successor Company Year Ended Period from June 26, 2015 December 31, 2016 to December 31, 2015 Risk free interest rate 1.53% - 1.90% 1.71% - 2.05% Expected stock price volatility 40.71% - 40.87% 31.73% - 41.92% Expected term in years 5.16 5.16 - 6.00 Expected dividend yield — — |
Summary of the Status of Non-Vested Restricted Stock Awards | The following table summarizes restricted stock activity under the 2015 Incentive Compensation Plan, for the year ended December 31, 2016: Number of Shares Weighted Average Grant Date Fair Value Per Share Restricted stock awards as of December 31, 2015 997,444 $11.71 Granted — — Vested (347,618 ) $11.73 Forfeited (127,384 ) $12.88 Restricted stock awards as of December 31, 2016 522,442 $10.65 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Brazil Corporate and Eliminations Consolidated (in thousands) Year Ended December 31, 2016 - Successor Company Operating revenues $ 984,878 $ 168 $ 985,046 Segment earnings (losses) $ 67,186 $ (36,821 ) $ 30,365 Less: Impairment, restructuring and other charges (1,384,811 ) Depreciation and amortization (172,383 ) Foreign currency transaction gains, net 76,615 Interest expense and other, net (85,754 ) Loss from continuing operations before reorganization items and income tax provision $ (1,535,968 ) Capital expenditures $ 51,307 $ — $ 51,307 Six Months Ended December 31, 2015 - Successor Company Operating revenues $ 529,332 $ 102 $ 529,434 Segment losses $ (15,925 ) $ (26,100 ) $ (42,025 ) Less: Impairment, restructuring and other charges (32,308 ) Depreciation and amortization (85,364 ) Foreign currency transaction losses, net (99,737 ) Interest expense and other, net (39,539 ) Loss from continuing operations before reorganization items and income tax provision $ (298,973 ) Capital expenditures $ 72,112 $ 500 $ 72,612 Six Months Ended June 30, 2015 - Predecessor Company Operating revenues $ 683,611 $ 100 $ 683,711 Segment losses $ (75,234 ) $ (37,982 ) $ (113,216 ) Less: Impairment, restructuring and other charges (36,792 ) Depreciation and amortization (153,878 ) Foreign currency transaction losses, net (63,948 ) Interest expense and other, net (67,630 ) Loss from continuing operations before reorganization items and income tax provision $ (435,464 ) Capital expenditures $ 68,385 $ 818 $ 69,203 Year Ended December 31, 2014 - Predecessor Company Operating revenues $ 1,848,918 $ 36 $ 1,848,954 Segment losses $ (133,691 ) $ (123,141 ) $ (256,832 ) Less: Impairment, restructuring and other charges (105,664 ) Depreciation and amortization (394,061 ) Foreign currency transaction losses, net (51,149 ) Interest expense and other, net (340,388 ) Loss from continuing operations before reorganization items and income tax provision $ (1,148,094 ) Capital expenditures $ 218,855 $ 14,507 $ 233,362 December 31, 2016 - Successor Company Identifiable assets $ 1,000,098 $ 418,411 $ 1,418,509 December 31, 2015 - Successor Company Identifiable assets $ 1,989,753 $ 740,155 $ 2,729,908 |
Quarterly Financial Data (Una35
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Successor Company First Second Third Fourth (in thousands, except per share amounts) 2016 Operating revenues $ 226,557 $ 249,213 $ 260,836 $ 248,440 Operating loss (54,064 ) (28,751 ) (1,386,696 ) (57,318 ) Net loss from continuing operations (32,807 ) (4,796 ) (1,411,554 ) (84,722 ) Net loss from discontinued operations (3,781 ) (5,075 ) (7,389 ) (3,749 ) Net loss from continuing operations, per common share, basic $ (0.33 ) $ (0.05 ) $ (14.10 ) $ (0.84 ) Net loss from discontinued operations, per common share, basic $ (0.04 ) $ (0.05 ) $ (0.07 ) $ (0.04 ) Net loss from continuing operations, per common share, diluted $ (0.33 ) $ (0.05 ) $ (14.10 ) $ (0.84 ) Net loss from discontinued operations, per common share, diluted $ (0.04 ) $ (0.05 ) $ (0.07 ) $ (0.04 ) Predecessor Company Successor Company First Second Third Fourth (in thousands, except per share amounts) 2015 Operating revenues $ 363,409 $ 320,302 $ 284,652 $ 244,782 Operating loss (105,811 ) (198,075 ) (77,652 ) (82,045 ) Net (loss) income from continuing operations (218,407 ) 1,737,808 (201,949 ) (90,542 ) Net (loss) income from discontinued operations (91,111 ) 312,225 12,528 (920 ) Net (loss) income from continuing operations, per common share, basic $ (1.27 ) $ 10.04 $ (2.02 ) $ (0.90 ) Net (loss) income from discontinued operations, per common share, basic $ (0.53 ) $ 1.80 $ 0.12 $ (0.01 ) Net (loss) income from continuing operations, per common share, diluted $ (1.27 ) $ 10.03 $ (2.02 ) $ (0.90 ) Net (loss) income from discontinued operations, per common share, diluted $ (0.53 ) $ 1.80 $ 0.12 $ (0.01 ) |
Schedule I - Condensed Financ36
Schedule I - Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | NII HOLDINGS, INC. CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY) (in thousands) Successor Company December 31, December 31, ASSETS Current assets Cash and cash equivalents $ 54,101 $ 56,011 Short-term intercompany receivables 1,242 1,202 Prepaid expenses and other — 61 Total current assets 55,343 57,274 Intangible assets, net — 37,956 Long-term intercompany receivables 3,146 281 Investment in subsidiaries 112,503 4,752,755 Total assets $ 170,992 $ 4,848,266 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Short-term intercompany payables $ 4,570 $ 4,570 Total current liabilities 4,570 4,570 Long-term intercompany payables — 3,296,117 Other long-term liabilities 400 3,584 Total liabilities 4,970 3,304,271 Total stockholders’ equity 166,022 1,543,995 Total liabilities and stockholders’ equity $ 170,992 $ 4,848,266 |
Condensed Statements of Comprehensive (Loss) Income | NII HOLDINGS, INC. CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (PARENT COMPANY ONLY) (in thousands) Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 Operating revenues $ — $ — $ — $ — Operating expenses Selling, general and administrative — — 429 2,145 Impairment, restructuring and other charges 36,839 — — — Depreciation and amortization 1,116 744 — — 37,955 744 429 2,145 Operating loss (37,955 ) (744 ) (429 ) (2,145 ) Other (expense) income Interest expense, net — — (119 ) (570 ) Intercompany interest expense (117,078 ) (118,365 ) (159,117 ) (165,324 ) Interest income — — 37 691 Intercompany interest income 197 97 125 — Equity in (loss) income of affiliates (1,401,998 ) (167,324 ) 1,793,151 (1,805,438 ) Other (expense) income, net (206 ) (3 ) 995 8,212 (1,519,085 ) (285,595 ) 1,635,072 (1,962,429 ) (Loss) income before reorganization items and income tax benefit (1,557,040 ) (286,339 ) 1,634,643 (1,964,574 ) Reorganization items — (373 ) 68,355 (291 ) Income tax benefit (provision) 3,183 (448 ) (1,002 ) 7,167 Net (loss) income from continuing operations (1,553,857 ) (287,160 ) 1,701,996 (1,957,698 ) (Loss) income from discontinued operations, net of income taxes (16 ) 6,277 38,519 — Net (loss) income $ (1,553,873 ) $ (280,883 ) $ 1,740,515 $ (1,957,698 ) Comprehensive (loss) income, net of income taxes Foreign currency translation adjustment $ 169,785 $ (248,781 ) $ (205,899 ) $ (340,847 ) Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Chile — (1,672 ) 421,953 (33,885 ) Other — 4,734 2,956 (544 ) Other comprehensive income (loss) 169,785 (245,719 ) 219,010 (375,276 ) Net (loss) income (1,553,873 ) (280,883 ) 1,740,515 (1,957,698 ) Total comprehensive (loss) income $ (1,384,088 ) $ (526,602 ) $ 1,959,525 $ (2,332,974 ) |
Condensed Statements of Cash Flows | NII HOLDINGS, INC. CONDENSED STATEMENTS OF CASH FLOWS (PARENT COMPANY ONLY) (in thousands) Successor Company Predecessor Company Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, Year Ended December 31, 2016 2015 2015 2014 Cash flows from operating activities: Net (loss) income $ (1,553,873 ) $ (280,883 ) $ 1,740,515 $ (1,957,698 ) Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities 1,554,075 280,910 (1,735,521 ) 1,861,773 Net cash provided by (used in) operating activities 202 27 4,994 (95,925 ) Cash flows from investing activities: Changes in restricted cash and escrow accounts — — — 25,300 Investments in subsidiaries (36,356 ) (29,690 ) (61,405 ) (180,712 ) Return of investments in subsidiaries 34,260 35,315 23 — Other, net (16 ) — — 1,856 Net cash (used in) provided by investing activities (2,112 ) 5,625 (61,382 ) (153,556 ) Cash flows from financing activities: Other, net — — — (86 ) Net cash used in financing activities — — — (86 ) Net (decrease) increase in cash and cash equivalents (1,910 ) 5,652 (56,388 ) (249,567 ) Cash and cash equivalents, beginning of period 56,011 50,359 106,747 356,314 Cash and cash equivalents, end of period $ 54,101 $ 56,011 $ 50,359 $ 106,747 |
Schedule II - Valuation and Q37
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Balance at Beginning of Period Charged to Costs and Expenses Deductions and Other Adjustments (1) Balance at End of Period Year Ended December 31, 2016 — Successor Company Allowance for doubtful accounts $ 39,033 $ 77,883 $ (62,695 ) $ 54,221 Valuation allowance for deferred tax assets $ 5,290,813 $ 1,555,006 $ 99,225 $ 6,945,044 Six Months Ended December 31, 2015 — Successor Company Allowance for doubtful accounts $ — $ 32,279 $ 6,754 (2) $ 39,033 Valuation allowance for deferred tax assets $ 4,388,792 $ 1,010,438 $ (108,417 ) $ 5,290,813 Six Months Ended June 30, 2015 — Predecessor Company Allowance for doubtful accounts $ 30,749 $ 65,396 $ (96,145 ) (3) $ — Valuation allowance for deferred tax assets $ 4,447,133 $ 22,828 $ (81,169 ) $ 4,388,792 Year Ended December 31, 2014 — Predecessor Company Allowance for doubtful accounts $ 35,458 $ 57,418 $ (62,127 ) $ 30,749 Valuation allowance for deferred tax assets $ 4,145,002 $ 340,425 $ (38,294 ) $ 4,447,133 _______________________________________ (1) Includes the impact of foreign currency translation adjustments. (2) Includes the impact of cash collections subsequent to the implementation of fresh start accounting. (3) Includes the impact of a $50.6 million reduction to allowance for doubtful accounts resulting from the application of fresh start accounting. |
Summary of Operations Revision
Summary of Operations Revision of Prior Period Amounts (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Dec. 31, 2015USD ($)$ / shares | |
Prior period reclassification adjustment | $ 6.9 |
Successor [Member] | |
Prior period reclassification adjustment | 6.9 |
Accumulated deficit | 6.8 |
Accumulated other comprehensive loss | $ 0.1 |
Change in prior period earnings per share (in dollars per share) | $ / shares | $ 0.07 |
Summary of Operations Going Con
Summary of Operations Going Concern (Details) $ in Thousands, BRL in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2016BRL | Dec. 31, 2015USD ($) | Dec. 31, 2015BRL | |
Cash and short-term investments | $ 331,200 | ||||
Cash pledged as collateral | $ 87,400 | ||||
Minimum [Member] | |||||
Period need to obtain additional funding to preserve liquidity | 6 months | ||||
Maximum [Member] | |||||
Period need to obtain additional funding to preserve liquidity | 12 months | ||||
Nextel Brazil [Member] | |||||
Debt and capital lease obligations | $ 225,000 | ||||
Loans payable to bank | 237,400 | ||||
Equipment financing facility | 293,600 | ||||
Spectrum purchase price | $ 116,700 | BRL 455 | |||
License agreement payment | $ 14,000 | BRL 45.5 | |||
Successor [Member] | |||||
Cash held in escrow | 163,435 | 6,000 | |||
Debt and capital lease obligations | $ 756,316 | $ 665,067 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details) - USD ($) shares in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Time deposits | $ 9,300,000 | |||
Provision for inventory obsolescence | $ 2,200,000 | $ 0 | $ 1,700,000 | $ 29,300,000 |
Acquired finite-lived intangible assets, weighted average useful life | 30 years | |||
Amortization of intangible assets including renewals, useful life, minimum | 10 years | |||
Amortization of intangible assets including renewals, useful life, maximum | 40 years | |||
Revenue based taxes And other excise taxes | $ 30,900,000 | 39,000,000 | $ 46,900,000 | 101,000,000 |
Advertising expense | $ 21,600,000 | $ 28,700,000 | $ 30,900,000 | $ 88,700,000 |
Stock Options [Member] | ||||
Antidilutive securities excluded from computation of net (loss) income per share (in shares) | 2.2 | 4.8 | 3.5 | 5.4 |
Restricted Stock [Member] | ||||
Antidilutive securities excluded from computation of net (loss) income per share (in shares) | 0.8 | 0.9 | ||
Customer relationships [Member] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 4 years | |||
Minimum [Member] | Licensing Agreements [Member] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 26 years | |||
Maximum [Member] | Licensing Agreements [Member] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 30 years | |||
Mobile Network Equipment and Network Software [Member] | Minimum [Member] | ||||
Useful life | 3 years | |||
Mobile Network Equipment and Network Software [Member] | Maximum [Member] | ||||
Useful life | 30 years | |||
Office Equipment [Member] | Minimum [Member] | ||||
Useful life | 3 years | |||
Office Equipment [Member] | Maximum [Member] | ||||
Useful life | 10 years | |||
Nextel Brazil And Nextel Mexico | ||||
Assets owned by subsidiaries (as percent) | 71.00% |
Summary of Significant Accoun41
Summary of Significant Accounting Policies Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Fresh start adjustments | $ 5,400 | ||
Predecessor [Member] | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligation, beginning balance | $ 18,669 | 19,177 | |
Fresh start adjustments | 5,024 | ||
New asset retirement obligations | 547 | 350 | |
Accretion | 1,688 | 1,321 | |
Settlement of asset retirement obligations | (1,337) | (168) | |
Foreign currency translation and other | (4,949) | (2,011) | |
Asset retirement obligation, ending balance | 18,669 | ||
Successor [Member] | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligation, beginning balance | 23,693 | $ 19,642 | |
New asset retirement obligations | 198 | ||
Change in assumptions | (1,619) | ||
Accretion | 2,552 | ||
Settlement of asset retirement obligations | (441) | ||
Foreign currency translation and other | 7,274 | ||
Asset retirement obligation, ending balance | $ 19,642 | $ 23,693 | $ 27,606 |
Emergence From Chapter 11 Pro42
Emergence From Chapter 11 Proceedings and Fresh Start Accounting (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2015USD ($) | Dec. 31, 2016$ / sharesshares | Dec. 31, 2015$ / sharesshares | Jun. 26, 2015USD ($)$ / sharesshares | Sep. 16, 2014subsidiary | Sep. 15, 2014subsidiary | |
Number of subsidiaries that filed voluntary petitions under Chapter 11 | subsidiary | 5 | 8 | ||||
Total claims paid | $ 748,000 | |||||
Voting rights of shareholders prior to emergence (as percent) | 50.00% | |||||
Amount of claims settled | 2,813,000 | |||||
Claims paid to senior noteholders | 745,221 | |||||
Issuance of common stock to settle claims | 2,067,700 | |||||
Intangible assets, net | (562,702) | |||||
Decrease in non-income based tax assets | (13,500) | |||||
Prepaid rent write-off | 5,200 | |||||
Write-off of unamortized deferred gains | 61,300 | |||||
Fresh start adjustments | $ 5,400 | |||||
Corporate [Member] | Trade name [Member] | ||||||
Discount rate (as percent) | 16.50% | |||||
Royalty rate (as percent) | 0.25% | |||||
Nextel Brazil [Member] | Licensing Agreements [Member] | ||||||
Discount rate (as percent) | 16.50% | |||||
Nextel Brazil [Member] | Minimum [Member] | Customer relationships [Member] | ||||||
Churn rate (as percent) | 1.90% | |||||
Nextel Brazil [Member] | Maximum [Member] | Customer relationships [Member] | ||||||
Churn rate (as percent) | 2.60% | |||||
Senior Notes [Member] | 7.875% Senior Notes Due 2019 [Member] | ||||||
Senior notes | $ 700,000 | |||||
Notes interest rate (as percent) | 7.875% | |||||
Senior Notes [Member] | 11.375% Senior Notes Due 2019 [Member] | ||||||
Senior notes | $ 900,000 | |||||
Notes interest rate (as percent) | 11.375% | |||||
Senior Notes [Member] | 7.625% Senior Notes Due 2021 [Member] | ||||||
Senior notes | $ 1,450,000 | |||||
Notes interest rate (as percent) | 7.625% | |||||
Senior Notes [Member] | 8.875% Senior Notes Due 2019 [Member] | ||||||
Senior notes | $ 500,000 | |||||
Notes interest rate (as percent) | 8.875% | |||||
Senior Notes [Member] | 10.0% Senior Notes Due 2016 [Member] | ||||||
Senior notes | $ 800,000 | |||||
Notes interest rate (as percent) | 10.00% | |||||
Successor [Member] | ||||||
Common stock, shares authorized (in shares) | shares | 140,000,000 | 140,000,000 | 140,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Common stock shares issued (in shares) | shares | 100,258,000 | 100,001,000 | 99,999,992 | |||
Price per share | $ / shares | $ 20.68 | |||||
Total claims paid | $ 776,300 | |||||
Preferred stock, shares authorized (in shares) | shares | 10,000,000 | 10,000,000 | 10,000,000 | |||
Percent of common stock issued and outstanding to be issued upon emergence (as percent) | 10.00% | |||||
Intangible assets, net | $ 1,133,778 | |||||
Successor [Member] | Corporate [Member] | Trade name [Member] | ||||||
Intangible assets, net | 38,700 | |||||
Successor [Member] | Nextel Brazil [Member] | Licensing Agreements [Member] | ||||||
Intangible assets, net | 1,066,078 | |||||
Successor [Member] | Nextel Brazil [Member] | Customer relationships [Member] | ||||||
Intangible assets, net | $ 29,000 |
Emergence From Chapter 11 Pro43
Emergence From Chapter 11 Proceedings and Fresh Start Accounting Reconciliation of the Successor Company's Equity Value to Reorganization Value (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of Successor Company's common stock | $ 2,067,565 | ||
Fair value of debt | 774,616 | ||
Fair value of other liabilities | 638,916 | ||
Successor [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of Successor Company's common stock | $ 166,022 | $ 1,543,995 | 2,067,665 |
Total assets | $ 1,418,509 | $ 2,729,908 | $ 3,481,197 |
Emergence From Chapter 11 Pro44
Emergence From Chapter 11 Proceedings and Fresh Start Accounting Fresh Start Balance Sheet (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Current assets | |
Intangible assets, net | $ (562,702) |
Current liabilities | |
Liabilities subject to compromise | 4,591,452 |
Stockholders’ (deficit) equity | |
Accumulated deficit | (851,413) |
Accumulated other comprehensive loss | (1,112,343) |
Total stockholders’ (deficit) equity | 261,772 |
Reorganization adjustments [Member] | |
Current assets | |
Cash and cash equivalents | (776,306) |
Short-term investments | 0 |
Accounts receivable, net | 0 |
Handset and accessory inventory | 0 |
Prepaid expenses and other | 0 |
Assets related to discontinued operations | 0 |
Total current assets | (776,306) |
Property, plant and equipment, net | 0 |
Intangible assets, net | 0 |
Other assets | 0 |
Assets related to discontinued operations | 0 |
Total assets | (776,306) |
Current liabilities | |
Accounts payable | 0 |
Accrued expenses and other | 0 |
Deferred revenues | 0 |
Current portion of long-term debt | 0 |
Liabilities related to discontinued operations | 0 |
Total current liabilities | 0 |
Long-term debt | 0 |
Other long-term liabilities | 0 |
Liabilities related to discontinued operations | 0 |
Total liabilities not subject to compromise | 0 |
Liabilities subject to compromise | (4,591,452) |
Stockholders’ (deficit) equity | |
Undesignated preferred stock | 0 |
Paid-in capital | 1,522,492 |
Accumulated deficit | 3,269,973 |
Accumulated other comprehensive loss | 0 |
Total stockholders’ (deficit) equity | 3,815,146 |
Total liabilities and stockholders’ (deficit) equity | (776,306) |
Fresh start adjustments [Member] | |
Current assets | |
Cash and cash equivalents | 0 |
Short-term investments | 0 |
Accounts receivable, net | 0 |
Handset and accessory inventory | 0 |
Prepaid expenses and other | (19,494) |
Assets related to discontinued operations | 0 |
Total current assets | (19,494) |
Property, plant and equipment, net | (376,519) |
Intangible assets, net | 562,702 |
Other assets | (18,739) |
Assets related to discontinued operations | (13,104) |
Total assets | 134,846 |
Current liabilities | |
Accounts payable | 0 |
Accrued expenses and other | (2,677) |
Deferred revenues | (1,805) |
Current portion of long-term debt | 2,616 |
Liabilities related to discontinued operations | (1,727) |
Total current liabilities | (3,593) |
Long-term debt | (72,355) |
Other long-term liabilities | (56,541) |
Liabilities related to discontinued operations | 6,405 |
Total liabilities not subject to compromise | (126,084) |
Liabilities subject to compromise | 0 |
Stockholders’ (deficit) equity | |
Undesignated preferred stock | 0 |
Accumulated deficit | (851,413) |
Accumulated other comprehensive loss | 1,112,343 |
Total stockholders’ (deficit) equity | 260,930 |
Total liabilities and stockholders’ (deficit) equity | 134,846 |
Predecessor [Member] | |
Current assets | |
Cash and cash equivalents | 1,199,441 |
Short-term investments | 97,395 |
Accounts receivable, net | 174,649 |
Handset and accessory inventory | 49,835 |
Prepaid expenses and other | 159,346 |
Assets related to discontinued operations | 242,487 |
Total current assets | 1,923,153 |
Property, plant and equipment, net | 1,079,947 |
Intangible assets, net | 571,076 |
Other assets | 516,235 |
Assets related to discontinued operations | 32,246 |
Total assets | 4,122,657 |
Current liabilities | |
Accounts payable | 102,317 |
Accrued expenses and other | 323,480 |
Deferred revenues | 17,908 |
Current portion of long-term debt | 667,617 |
Liabilities related to discontinued operations | 96,161 |
Total current liabilities | 1,207,483 |
Long-term debt | 176,738 |
Other long-term liabilities | 149,632 |
Liabilities related to discontinued operations | 5,763 |
Total liabilities not subject to compromise | 1,539,616 |
Liabilities subject to compromise | 4,591,452 |
Stockholders’ (deficit) equity | |
Undesignated preferred stock | 0 |
Common stock | 172 |
Paid-in capital | 1,522,320 |
Accumulated deficit | (2,418,560) |
Accumulated other comprehensive loss | (1,112,343) |
Total stockholders’ (deficit) equity | (2,008,411) |
Total liabilities and stockholders’ (deficit) equity | 4,122,657 |
Predecessor [Member] | Reorganization adjustments [Member] | |
Stockholders’ (deficit) equity | |
Common stock | (172) |
Paid-in capital | (1,522,320) |
Predecessor [Member] | Fresh start adjustments [Member] | |
Stockholders’ (deficit) equity | |
Common stock | 0 |
Paid-in capital | 0 |
Successor [Member] | |
Current assets | |
Cash and cash equivalents | 423,135 |
Short-term investments | 97,395 |
Accounts receivable, net | 174,649 |
Handset and accessory inventory | 49,835 |
Prepaid expenses and other | 139,852 |
Assets related to discontinued operations | 242,487 |
Total current assets | 1,127,353 |
Property, plant and equipment, net | 703,428 |
Intangible assets, net | 1,133,778 |
Other assets | 497,496 |
Assets related to discontinued operations | 19,142 |
Total assets | 3,481,197 |
Current liabilities | |
Accounts payable | 102,317 |
Accrued expenses and other | 320,803 |
Deferred revenues | 16,103 |
Current portion of long-term debt | 670,233 |
Liabilities related to discontinued operations | 94,434 |
Total current liabilities | 1,203,890 |
Long-term debt | 104,383 |
Other long-term liabilities | 93,091 |
Liabilities related to discontinued operations | 12,168 |
Total liabilities not subject to compromise | 1,413,532 |
Liabilities subject to compromise | 0 |
Stockholders’ (deficit) equity | |
Undesignated preferred stock | 0 |
Common stock | 100 |
Paid-in capital | 2,067,565 |
Accumulated deficit | 0 |
Accumulated other comprehensive loss | 0 |
Total stockholders’ (deficit) equity | 2,067,665 |
Total liabilities and stockholders’ (deficit) equity | 3,481,197 |
Successor [Member] | Reorganization adjustments [Member] | |
Stockholders’ (deficit) equity | |
Common stock | 100 |
Paid-in capital | 2,067,565 |
Successor [Member] | Fresh start adjustments [Member] | |
Stockholders’ (deficit) equity | |
Common stock | 0 |
Paid-in capital | $ 0 |
Emergence From Chapter 11 Pro45
Emergence From Chapter 11 Proceedings and Fresh Start Accounting Cash Payments Made in Connection with the Implementation of the Plan of Reorganization (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Reorganizations [Abstract] | |
Claims paid to senior noteholders | $ 745,221 |
Claims paid to senior noteholders | 2,779 |
Total claims paid | 748,000 |
Reorganization-related professional fees | 28,306 |
Total cash payments | $ 776,306 |
Emergence From Chapter 11 Pro46
Emergence From Chapter 11 Proceedings and Fresh Start Accounting Cancellation of Debt and Related Transactions (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Reorganizations [Abstract] | |
Total Predecessor Company liabilities subject to compromise | $ 4,591,452 |
Less: Common stock, Successor (at par) | 100 |
Paid-in-capital, Successor | (2,067,565) |
Total claims paid | 748,000 |
Gain on settlement of liabilities subject to compromise | $ 1,775,787 |
Emergence From Chapter 11 Pro47
Emergence From Chapter 11 Proceedings and Fresh Start Accounting Adjustments for the Cancellation of the Predecessor Company's Common Stock and Paid-In Capital to Accumulated Deficit (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Gain on settlement of liabilities subject to compromise | $ 1,775,787 |
Reorganization-related professional fees | 28,306 |
Net impact to accumulated deficit | (851,413) |
Reorganization adjustments [Member] | |
Gain on settlement of liabilities subject to compromise | 1,775,787 |
Reorganization-related professional fees | (28,306) |
Net gain on reorganization adjustments | 1,747,481 |
Cancellation of Predecessor Company equity | 1,522,492 |
Net impact to accumulated deficit | $ 3,269,973 |
Emergence From Chapter 11 Pro48
Emergence From Chapter 11 Proceedings and Fresh Start Accounting Impact of Fresh Start Adjustments on Property, Plant and Equipment (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Property, Plant and Equipment [Line Items] | |
Property and equipment, net | $ 376,519 |
Intangible assets, net | (562,702) |
Fresh start adjustments [Member] | |
Property, Plant and Equipment [Line Items] | |
Land | 0 |
Leasehold improvements | (20,188) |
Network equipment, communication towers and network software | (1,291,712) |
Software, office equipment, furniture and fixtures and other | (261,342) |
Less: Accumulated depreciation and amortization | 1,207,834 |
Property and equipment, net | (365,408) |
Construction in progress | (11,111) |
Property and equipment net, including construction in progress | (376,519) |
Intangible assets, net | 562,702 |
Fresh start adjustments [Member] | Nextel Brazil [Member] | Licenses [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, net | 513,002 |
Fresh start adjustments [Member] | Nextel Brazil [Member] | Customer relationships [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, net | 29,000 |
Fresh start adjustments [Member] | Corporate [Member] | Trade name [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, net | 20,700 |
Predecessor [Member] | |
Property, Plant and Equipment [Line Items] | |
Land | 3,341 |
Leasehold improvements | 35,515 |
Network equipment, communication towers and network software | 1,819,759 |
Software, office equipment, furniture and fixtures and other | 342,210 |
Less: Accumulated depreciation and amortization | (1,207,834) |
Property and equipment, net | 992,991 |
Construction in progress | 86,956 |
Property and equipment net, including construction in progress | 1,079,947 |
Intangible assets, net | 571,076 |
Predecessor [Member] | Nextel Brazil [Member] | Licenses [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, net | 553,076 |
Predecessor [Member] | Nextel Brazil [Member] | Customer relationships [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, net | 0 |
Predecessor [Member] | Corporate [Member] | Trade name [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, net | 18,000 |
Successor [Member] | |
Property, Plant and Equipment [Line Items] | |
Land | 3,341 |
Leasehold improvements | 15,327 |
Network equipment, communication towers and network software | 528,047 |
Software, office equipment, furniture and fixtures and other | 80,868 |
Less: Accumulated depreciation and amortization | 0 |
Property and equipment, net | 627,583 |
Construction in progress | 75,845 |
Property and equipment net, including construction in progress | 703,428 |
Intangible assets, net | 1,133,778 |
Successor [Member] | Nextel Brazil [Member] | Licenses [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, net | 1,066,078 |
Successor [Member] | Nextel Brazil [Member] | Customer relationships [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, net | 29,000 |
Successor [Member] | Corporate [Member] | Trade name [Member] | |
Property, Plant and Equipment [Line Items] | |
Intangible assets, net | $ 38,700 |
Emergence From Chapter 11 Pro49
Emergence From Chapter 11 Proceedings and Fresh Start Accounting Adjustments Related to Equipment Financing Facility (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Debt Instrument [Line Items] | |
Total debt | $ 69,739 |
Successor [Member] | |
Debt Instrument [Line Items] | |
Other | 93,091 |
Less: current portion | 1,203,890 |
Long-term debt | 104,383 |
Predecessor [Member] | |
Debt Instrument [Line Items] | |
Other | 149,632 |
Less: current portion | 1,207,483 |
Long-term debt | 176,738 |
Nextel Brazil [Member] | Successor [Member] | |
Debt Instrument [Line Items] | |
Brazil equipment financing | 363,948 |
Brazil bank loans | 304,309 |
Brazil capital lease and tower financing obligations | 105,371 |
Other | 988 |
Total debt | 774,616 |
Less: current portion | 670,233 |
Long-term debt | 104,383 |
Nextel Brazil [Member] | Predecessor [Member] | |
Debt Instrument [Line Items] | |
Brazil equipment financing | 366,937 |
Brazil bank loans | 294,322 |
Brazil capital lease and tower financing obligations | 182,108 |
Other | 988 |
Total debt | 844,355 |
Less: current portion | 667,617 |
Long-term debt | 176,738 |
Fresh start adjustments [Member] | |
Debt Instrument [Line Items] | |
Other | (56,541) |
Less: current portion | (3,593) |
Long-term debt | (72,355) |
Fresh start adjustments [Member] | Nextel Brazil [Member] | |
Debt Instrument [Line Items] | |
Brazil equipment financing | (2,989) |
Brazil bank loans | 9,987 |
Brazil capital lease and tower financing obligations | (76,737) |
Other | 0 |
Total debt | (69,739) |
Less: current portion | 2,616 |
Long-term debt | $ (72,355) |
Emergence From Chapter 11 Pro50
Emergence From Chapter 11 Proceedings and Fresh Start Accounting Impact of Fresh Start Adjustments and Elimination of Predecessor Company's Accumulated Other Comprehensive Loss (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Reorganizations [Abstract] | |
Intangible asset fair value adjustment | $ 562,702 |
Property, plant and equipment fair value adjustment | (376,519) |
Debt fair value adjustment | 69,739 |
Write-off of unamortized deferred gains on 2013 tower transactions | 63,940 |
Other | (58,090) |
Total stockholders’ (deficit) equity | 261,772 |
Tax impact of fresh start adjustments | (842) |
Elimination of Predecessor Company's accumulated other comprehensive loss | (1,112,343) |
Net impact to accumulated deficit | $ (851,413) |
Emergence From Chapter 11 Pro51
Emergence From Chapter 11 Proceedings and Fresh Start Accounting Reorganization Items (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Successor [Member] | ||||
Gain on settlement of liabilities subject to compromise | $ 0 | $ 0 | ||
Net gain on fresh start fair value adjustments | 0 | 0 | ||
Reorganization-related professional fees and other costs | 1,467 | (803) | ||
Total reorganization items | $ (1,467) | $ 803 | ||
Predecessor [Member] | ||||
Gain on settlement of liabilities subject to compromise | $ 1,775,787 | $ 0 | ||
Net gain on fresh start fair value adjustments | 261,772 | 0 | ||
Reorganization-related professional fees and other costs | (80,685) | (71,601) | ||
Total reorganization items | $ (1,956,874) | $ 71,601 |
Impairments, Restructuring an52
Impairments, Restructuring and Other Charges (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016USD ($)site | Dec. 31, 2015employee | Sep. 30, 2014employee | Jun. 30, 2014employee | Dec. 31, 2015USD ($)employee | Jun. 30, 2015USD ($)employee | Dec. 31, 2016USD ($)site | Dec. 31, 2014USD ($) | |
Impairments and Restructuring Charges [Line Items] | ||||||||
Restructuring and other charges | $ 9,900 | $ 27,700 | ||||||
Disbursement period for restructuring costs | 8 years | |||||||
Restructuring benefit | 3,200 | |||||||
Successor [Member] | ||||||||
Impairments and Restructuring Charges [Line Items] | ||||||||
Restructuring and other charges | $ 35,358 | |||||||
Nextel Brazil [Member] | ||||||||
Impairments and Restructuring Charges [Line Items] | ||||||||
Long-lived assets | $ 1,700,000 | 1,700,000 | ||||||
Asset impairment charges | 1,340,000 | |||||||
Impairment of long-lived assets | 36,800 | |||||||
Restructuring and other charges | $ 10,800 | |||||||
Nextel Brazil [Member] | Contract Termination [Member] | ||||||||
Impairments and Restructuring Charges [Line Items] | ||||||||
Restructuring and other charges | $ 21,400 | |||||||
Number of transmitter and receiver sites expected to be terminated | site | 600 | 600 | ||||||
Brazil [Member] | ||||||||
Impairments and Restructuring Charges [Line Items] | ||||||||
Asset impairment charges | 12,600 | $ 31,100 | $ 11,000 | 21,900 | ||||
Restructuring and other charges | $ 8,400 | 4,500 | ||||||
Number of employees severed | employee | 800 | 700 | ||||||
Corporate [Member] | ||||||||
Impairments and Restructuring Charges [Line Items] | ||||||||
Restructuring and other charges | $ 5,400 | $ 3,200 | ||||||
Number of employees severed | employee | 45 | 85 | 30 | |||||
Corporate [Member] | Construction in Progress [Member] | ||||||||
Impairments and Restructuring Charges [Line Items] | ||||||||
Asset impairment charges | 42,800 | |||||||
Corporate [Member] | Corporate Aircraft [Member] | ||||||||
Impairments and Restructuring Charges [Line Items] | ||||||||
Asset impairment charges | $ 6,400 |
Impairments, Restructuring an53
Impairments, Restructuring and Other Charges Restructuring Charges (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | $ 9,900 | $ 27,700 | ||
Successor [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | 32,308 | $ 1,384,811 | ||
Restructuring Reserve [Roll Forward] | ||||
Accrued restructuring charges, beginning balance | 16,859 | |||
Restructuring and other charges | 35,358 | |||
Cash payments | (30,569) | |||
Foreign currency translation adjustment | 2,455 | |||
Accrued restructuring charges, ending balance | 16,859 | 24,103 | ||
Predecessor [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | $ 36,792 | 105,664 | ||
Brazil [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 8,400 | 4,500 | ||
Brazil [Member] | Successor [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | 23,968 | 1,340,610 | ||
Brazil [Member] | Predecessor [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | 28,072 | 42,271 | ||
Corporate [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 5,400 | 3,200 | ||
Corporate [Member] | Successor [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | $ 8,340 | $ 44,201 | ||
Corporate [Member] | Predecessor [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | $ 8,720 | $ 63,393 |
Supplemental Financial Statem54
Supplemental Financial Statement Information Prepaid Expenses and Other (Details) - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Cash in escrow | $ 163,435 | $ 6,000 |
Cash collateral related to performance bonds | 30,928 | 47,450 |
Value-added taxes | 29,829 | 33,467 |
Prepayment for roaming and RAN sharing agreements | 27,731 | 20,556 |
Other prepaid assets | 23,020 | 11,934 |
Other current assets | 5,202 | 13,127 |
Prepaid expenses and others | $ 280,145 | $ 132,534 |
Supplemental Financial Statem55
Supplemental Financial Statement Information Property, Plant and Equipment (Details) - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 675 | $ 2,655 |
Building and leasehold improvements | 1,489 | 11,765 |
Network equipment, communication towers and network software | 95,298 | 492,814 |
Software, office equipment, furniture and fixtures and other | 10,952 | 65,747 |
Less: Accumulated depreciation and amortization | 0 | (59,987) |
Property, plant and equipment, gross | 108,414 | 512,994 |
Construction in progress | 21,061 | 42,029 |
Property, plant and equipment, net | $ 129,475 | $ 555,023 |
Supplemental Financial Statem56
Supplemental Financial Statement Information Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired finite-lived intangible assets, weighted average useful life | 30 years | |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired finite-lived intangible assets, weighted average useful life | 4 years | |
Successor [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 912,560 | $ 243,681 |
Accumulated Amortization | (19,938) | 0 |
Net Carrying Value | 892,622 | $ 243,681 |
Successor [Member] | Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 26 years | |
Gross Carrying Value | 850,818 | $ 226,426 |
Accumulated Amortization | (16,314) | 0 |
Net Carrying Value | 834,504 | $ 226,426 |
Successor [Member] | Tradename [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 26 years | |
Gross Carrying Value | 38,700 | $ 0 |
Accumulated Amortization | (744) | 0 |
Net Carrying Value | 37,956 | $ 0 |
Successor [Member] | Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 4 years | |
Gross Carrying Value | 23,042 | $ 17,255 |
Accumulated Amortization | (2,880) | 0 |
Net Carrying Value | $ 20,162 | $ 17,255 |
Supplemental Financial Statem57
Supplemental Financial Statement Information Intangible Amortization Expense (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 15,922 |
2,018 | 15,922 |
2,019 | 12,471 |
2,020 | 9,020 |
2,021 | $ 9,020 |
Supplemental Financial Statem58
Supplemental Financial Statement Information (Accrued Expenses and Other) (Details) - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Contingencies | $ 54,260 | $ 49,507 |
Network system and information technology | 50,286 | 32,079 |
Payroll related items and commissions | 45,187 | 31,734 |
Non-income based taxes | 28,158 | 33,097 |
Capital expenditures | 17,514 | 25,182 |
Other | 76,494 | 97,259 |
Accrued expenses and other | $ 271,899 | $ 268,858 |
Supplemental Financial Statem59
Supplemental Financial Statement Information Other Assets (Details) - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted cash | $ 85,123 | $ 275,235 |
Cash collateral related to performance bonds | 56,523 | 94,236 |
Prepayment for roaming and RAN sharing agreements | 37,433 | 0 |
Equity interest in Nextel Argentina | 0 | 108,148 |
Other | 92,789 | 76,622 |
Other assets | $ 271,868 | $ 554,241 |
Supplemental Financial Statem60
Supplemental Financial Statement Information Restricted Cash (Details) - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Brazil judicial deposits | $ 85,123 | $ 54,289 | |
Restricted cash | 248,558 | 281,235 | |
Nextel Mexico [Member] | |||
Cash in escrow | 163,435 | 186,593 | $ 187,500 |
Nextel Peru [Member] | |||
Cash in escrow | 0 | 34,353 | |
Nextel Argentina [Member] | |||
Cash in escrow | $ 0 | $ 6,000 |
Supplemental Financial Statem61
Supplemental Financial Statement Information Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Non-cash investing and financing activities | $ 170,900 | |||
Nextel Argentina [Member] | ||||
Non-cash investing activities | $ 25,000 | |||
Licenses [Member] | ||||
Current liabilities | $ 125,700 | |||
Successor [Member] | ||||
Cash paid for capital expenditures, including capitalized interest | 76,630 | 61,291 | ||
Change in capital expenditures accrued and unpaid or financed, including accreted interest capitalized | (4,018) | (9,984) | ||
Capital expenditures | 72,612 | 51,307 | ||
Interest expense, net | 55,563 | 113,732 | ||
Interest capitalized | 2,142 | 283 | ||
Interest Expense Including Capitalized Interest | 57,705 | 114,015 | ||
Cash paid for interest, net of amounts capitalized | 59,914 | 105,636 | ||
Current liabilities | 905,429 | 893,173 | ||
Value of stock issued | $ 2,067,700 | |||
Successor [Member] | Nextel Argentina [Member] | ||||
Cash in escrow | 6,000 | 0 | ||
Successor [Member] | Nextel Mexico [Member] | ||||
Cash in escrow | $ 186,593 | 187,500 | $ 163,435 | |
Predecessor [Member] | ||||
Cash paid for capital expenditures, including capitalized interest | 88,485 | 326,246 | ||
Change in capital expenditures accrued and unpaid or financed, including accreted interest capitalized | (19,282) | (92,884) | ||
Capital expenditures | 69,203 | 233,362 | ||
Interest expense, net | 82,820 | 372,904 | ||
Interest capitalized | 2,556 | 27,712 | ||
Interest Expense Including Capitalized Interest | 85,376 | 400,616 | ||
Cash paid for interest, net of amounts capitalized | $ 65,598 | $ 261,161 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | Jan. 27, 2016 | Sep. 11, 2015 | Apr. 30, 2015 | Aug. 31, 2013 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Minimum [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Estimated range of possible loss of accrued liabilities minimum | $ 0 | ||||||||
Maximum [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Estimated range of possible loss of accrued liabilities minimum | 60,000,000 | ||||||||
Successor [Member] | Nextel Mexico, Nextel Argentina, Nextel Chile and Nextel Peru [Member] | |||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||
Operating revenues | $ 75,450,000 | 0 | |||||||
Operating expenses | (60,863,000) | 0 | |||||||
Other income (expense), net | 1,159,000 | 0 | |||||||
Income (loss) before income tax provision | 15,746,000 | 0 | |||||||
Income tax provision | (4,770,000) | 0 | |||||||
Loss from discontinued operations, before (loss) income on disposal, net of income taxes | 10,976,000 | 0 | |||||||
(Loss) income on disposal of Nextel Argentina, Nextel Mexico, Nextel Chile and Nextel Peru | 632,000 | (19,994,000) | |||||||
(Loss) income from discontinued operations, net of income taxes | 11,608,000 | (19,994,000) | |||||||
Predecessor [Member] | Nextel Mexico, Nextel Argentina, Nextel Chile and Nextel Peru [Member] | |||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||
Operating revenues | $ 599,038,000 | $ 1,878,362,000 | |||||||
Operating expenses | (675,245,000) | (2,423,218,000) | |||||||
Other income (expense), net | (49,974,000) | (148,641,000) | |||||||
Income (loss) before income tax provision | (126,181,000) | (693,497,000) | |||||||
Income tax provision | (8,065,000) | (69,115,000) | |||||||
Loss from discontinued operations, before (loss) income on disposal, net of income taxes | (134,246,000) | (762,612,000) | |||||||
(Loss) income on disposal of Nextel Argentina, Nextel Mexico, Nextel Chile and Nextel Peru | 355,360,000 | 29,585,000 | |||||||
(Loss) income from discontinued operations, net of income taxes | $ 221,114,000 | $ (733,027,000) | |||||||
Argentina [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Equity interest transferred (as percent) | 49.00% | ||||||||
Remaining equity interest held as a percent (as percent) | 51.00% | 51.00% | |||||||
Proceeds from sale of business deposited into escrow | $ 0 | $ 6,000,000 | |||||||
Release of escrow | 5,400,000 | ||||||||
Argentina [Member] | Successor [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Aggregate cash consideration | $ 178,000,000 | $ 178,000,000 | |||||||
Cash paid upon transfer of equity | $ 159,000,000 | ||||||||
Mexico [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Aggregate cash consideration | 1,875,000,000 | ||||||||
Proceeds from sale of business deposited into escrow | 187,500,000 | ||||||||
Release of escrow | 20,000,000 | ||||||||
Proceeds from divestiture of businesses | $ 1,448,000,000 | ||||||||
Payment for settlement of an indemnification claim | 4,200,000 | ||||||||
Amount remaining in escrow | 163,400,000 | ||||||||
Amount of assessment under appeal | 10,000,000 | ||||||||
Accrued tax contingencies | 2,900,000 | ||||||||
Peru [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Proceeds from sale of business deposited into escrow | $ 50,000,000 | ||||||||
Release of escrow | 17,100,000 | ||||||||
Payment for settlement of an indemnification claim | $ 15,600,000 | $ 17,300,000 | $ 15,600,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) BRL in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
Feb. 28, 2017USD ($) | Feb. 28, 2017BRL | Jun. 30, 2014USD ($)tower | Dec. 31, 2013USD ($)tower | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2016USD ($)installment | Dec. 31, 2014USD ($) | Dec. 31, 2017 | Dec. 31, 2016BRL | Jul. 31, 2016USD ($) | Jul. 31, 2016BRL | Dec. 31, 2015BRL | Sep. 30, 2015 | Oct. 31, 2012USD ($) | Apr. 30, 2012USD ($) | Dec. 31, 2011USD ($) | |
Other operating revenues | $ 3,600,000 | $ 7,800,000 | $ 7,700,000 | $ 19,800,000 | |||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Period required to maintain EBITDA | 6 months | 6 months | |||||||||||||||
Subsequent Event [Member] | Scenario, Forecast [Member] | |||||||||||||||||
Net debt to earnings ratio, minimum | 2.5 | ||||||||||||||||
Nextel Brazil [Member] | |||||||||||||||||
Equipment financing facility | 293,600,000 | ||||||||||||||||
Principal amount outstanding of bank loans | $ 237,400,000 | ||||||||||||||||
Initial term of license | 15 years | ||||||||||||||||
License agreement payment | $ 14,000,000 | BRL 45.5 | |||||||||||||||
Spectrum purchase price | $ 116,700,000 | BRL 455 | |||||||||||||||
Optional renewal period | 15 years | ||||||||||||||||
Remaining financing | $ 122,200,000 | BRL 409.5 | |||||||||||||||
Accrued interest (as percent) | 1.00% | ||||||||||||||||
Number of annual installments | installment | 6 | ||||||||||||||||
Brazil [Member] | |||||||||||||||||
Amount borrowed | $ 196,900,000 | $ 341,200,000 | |||||||||||||||
Amount over borrowing rate (as percent) | 115.00% | 140.00% | |||||||||||||||
Floating interest rate based on local Brazilian borrowing rate (as percent) | 139.54% | 139.54% | |||||||||||||||
Brazilian borrowing rate (as percent) | 19.74% | 19.05% | 19.05% | 19.74% | |||||||||||||
Principal amount outstanding of bank loans | $ 237,400,000 | ||||||||||||||||
Number of towers sold | tower | 103 | 1,940 | |||||||||||||||
Proceeds related to sale of towers | $ 18,600,000 | $ 348,000,000 | |||||||||||||||
Brazil [Member] | Subsequent Event [Member] | |||||||||||||||||
Standstill period | 120 days | 120 days | |||||||||||||||
Catch-up principal payments required if unable to agree on long-term amendments | $ 25,200,000 | BRL 84.4 | |||||||||||||||
Brazil Vendor Financing [Domain] | |||||||||||||||||
Loan agreement, maximum borrowing capacity | $ 500,000,000 | ||||||||||||||||
Borrowing period of loan | 3 years | ||||||||||||||||
Repayment term | 7 years | ||||||||||||||||
Brazil Vendor Financing [Domain] | Maximum [Member] | |||||||||||||||||
Brazil CDB loan floating interest rate (as percent) | 2.90% | 2.90% | |||||||||||||||
Effective interest rate on convertible notes (as percent) | 3.75% | 4.22% | 4.22% | 3.75% | |||||||||||||
Brazil Vendor Financing [Domain] | Minimum [Member] | |||||||||||||||||
Brazil CDB loan floating interest rate (as percent) | 1.80% | 1.80% | |||||||||||||||
Effective interest rate on convertible notes (as percent) | 2.65% | 3.12% | 3.12% | 2.65% |
Debt (Debt) (Details)
Debt (Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2012 | Dec. 31, 2011 |
Brazil [Member] | ||||
Debt Instrument [Line Items] | ||||
Brazil bank loans | $ 196,900 | $ 341,200 | ||
Successor [Member] | ||||
Debt Instrument [Line Items] | ||||
Brazil bank loans | $ 242,076 | $ 240,396 | ||
Brazil spectrum financing | 125,684 | 0 | ||
Other | 237 | 526 | ||
Total debt | 756,316 | 665,067 | ||
Less: current portion | (540,474) | (582,420) | ||
Debt, non-current portion | 215,842 | 82,647 | ||
Successor [Member] | Brazil [Member] | ||||
Debt Instrument [Line Items] | ||||
Equipment financing facility | 291,597 | 339,850 | ||
Brazil capital lease and tower financing obligations | $ 96,722 | $ 84,295 |
Debt (Annual Maturities of Long
Debt (Annual Maturities of Long-Term Debt Outstanding) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 535,972 |
2,018 | 4,129 |
2,019 | 21,961 |
2,020 | 22,836 |
2,021 | 23,833 |
Thereafter | 144,843 |
Total | $ 753,574 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Millions | Sep. 11, 2015USD ($)subsidiary | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 27, 2016 | Sep. 30, 2015subsidiary |
Number of indirect subsidiaries in binding agreement | subsidiary | 2 | 2 | |||||
Fair value of equity method investment | $ 108.1 | $ 108.1 | |||||
Held-to-maturity investments | 18 | 18 | |||||
Net realized gains resulting from the change in the estimated fair value of derivative instruments | 5.2 | $ 6.3 | $ (3.3) | ||||
Short-term Investments [Member] | Nextel Brazil [Member] | |||||||
Available for sale securities | 56.2 | $ 73.8 | 56.2 | ||||
Carrying value of certificates of deposit | 9.3 | 9.3 | |||||
Argentina [Member] | |||||||
Remaining equity interest held as a percent (as percent) | 51.00% | 51.00% | |||||
NIIT [Member] | |||||||
Held-to-maturity investments | $ 18.1 | 18.1 | |||||
Successor [Member] | Argentina [Member] | |||||||
Notes issued | $ 85 | ||||||
Aggregate cash consideration | $ 178 | $ 178 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values of Long-Term Debt Instrument) (Details) - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Principal Amount Outstanding | $ 671,035 | $ 576,795 |
Carrying Amount | 659,594 | 580,772 |
Estimated Fair Value | 619,410 | 569,555 |
Equipment Financing [Member] | ||
Principal Amount Outstanding | 293,550 | 342,475 |
Carrying Amount | 291,597 | 339,850 |
Estimated Fair Value | 280,893 | 340,189 |
Convertible Notes [Member] | ||
Principal Amount Outstanding | 237,618 | 234,320 |
Carrying Amount | 242,313 | 240,922 |
Estimated Fair Value | 221,458 | 229,366 |
Spectrum Financing [Member] | ||
Principal Amount Outstanding | 139,867 | 0 |
Carrying Amount | 125,684 | 0 |
Estimated Fair Value | $ 117,059 | $ 0 |
Commitments and Contingencies68
Commitments and Contingencies (Narrative) (Details) BRL in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
May 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2016USD ($)site | Dec. 31, 2014USD ($) | Aug. 31, 2016USD ($) | Aug. 31, 2016BRL | May 31, 2016BRL | |
Remaining operating lease terms of agreements minimum | 1 year | |||||||
Remaining operating lease terms of agreements maximum | 15 years | |||||||
Remaining operating office lease terms of agreements minimum | 1 year | |||||||
Remaining operating office lease terms of agreements maximum | 10 years | |||||||
Total rent expenses under operating lease | $ 76.4 | $ 93.4 | $ 164.6 | $ 229.7 | ||||
Purchase obligation | 439.1 | |||||||
Nextel Brazil [Member] | ||||||||
Accrued liabilities | 57.7 | 76.8 | ||||||
Unasserted claims | $ 5.4 | 1.4 | ||||||
Estimated range of possible loss of accrued liabilities minimum | 520 | |||||||
2017 [Member] | ||||||||
Purchase obligation | 276.2 | |||||||
2018 and 2019 [Member] | ||||||||
Purchase obligation | 87.9 | |||||||
2020 and 2021 [Member] | ||||||||
Purchase obligation | 75 | |||||||
Nextel Brazil [Member] | ||||||||
Length of service agreement | 10 years | |||||||
Disbursement period for restructuring costs | 5 years | |||||||
Minimum annual commitment | $ 246.2 | BRL 800 | ||||||
Payment due upon regulatory approval | $ 76.9 | BRL 250 | ||||||
Restructuring and related cost, expected cost | $ 30 | |||||||
Number of transmitter and receiver sites expected to be terminated | 1,400 | |||||||
Nextel Brazil [Member] | Contract Termination [Member] | ||||||||
Number of transmitter and receiver sites expected to be terminated | site | 600 | |||||||
Nextel Brazil [Member] | Five Years [Member] | ||||||||
Minimum annual commitment | BRL | 318 | |||||||
Nextel Brazil [Member] | Eight Years [Member] | ||||||||
Minimum annual commitment | BRL | BRL 482 |
Commitments and Contingencies69
Commitments and Contingencies (Future Minimum Payments for Capital and Operating Lease Obligations) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Capital Leases | |
2,017 | $ 55,708 |
2,018 | 47,269 |
2,019 | 41,397 |
2,020 | 41,613 |
2,021 | 41,519 |
Thereafter | 631,216 |
Total minimum lease payments | 858,722 |
Less: imputed interest | (762,000) |
Total | 96,722 |
Operating Leases | |
2,017 | 126,011 |
2,018 | 112,167 |
2,019 | 103,531 |
2,020 | 94,241 |
2,021 | 85,644 |
Thereafter | 203,718 |
Total minimum lease payments | 725,312 |
Less: imputed interest | 0 |
Total | 725,312 |
Total | |
2,017 | 181,719 |
2,018 | 159,436 |
2,019 | 144,928 |
2,020 | 135,854 |
2,021 | 127,163 |
Thereafter | 834,934 |
Total minimum lease payments | 1,584,034 |
Less: imputed interest | (762,000) |
Total | $ 822,034 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Preferred stock, shares issued (in shares) | 0 | |
Reserved for future issuance | 809,613 | |
Successor [Member] | ||
Preferred stock, shares issued (in shares) | 0 | 0 |
Reserved for future issuance | 5,263,158 |
Income Taxes (Income from Conti
Income Taxes (Income from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Successor [Member] | ||||
U.S. | $ (1,820) | $ (53,843) | ||
Non-U.S. | (295,686) | (1,482,928) | ||
Total | $ (297,506) | $ (1,536,771) | ||
Predecessor [Member] | ||||
U.S. | $ 1,745,628 | $ (340,545) | ||
Non-U.S. | (224,218) | (879,150) | ||
Total | $ 1,521,410 | $ (1,219,695) |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Successor [Member] | ||||
Federal | $ 0 | $ 0 | ||
Foreign | 2,502 | (291) | ||
Total current income tax (provision) benefit | 2,502 | (291) | ||
Federal | (403) | 2,864 | ||
State, net of Federal tax benefit (provision) | (45) | 319 | ||
Foreign | 2,961 | 0 | ||
Total deferred income tax benefit (provision) | 2,513 | 3,183 | ||
Total income tax benefit (provision) | $ 5,015 | $ 2,892 | ||
Predecessor [Member] | ||||
Federal | $ 0 | $ 0 | ||
Foreign | (1,104) | (2,924) | ||
Total current income tax (provision) benefit | (1,104) | (2,924) | ||
Federal | (814) | (1,846) | ||
State, net of Federal tax benefit (provision) | (91) | (206) | ||
Foreign | 0 | 0 | ||
Total deferred income tax benefit (provision) | (905) | (2,052) | ||
Total income tax benefit (provision) | $ (2,009) | $ (4,976) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the U.S. Statutory Federal Income Tax Rate to Effective Tax Rate) (Details) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Successor [Member] | ||||
Statutory Federal tax rate | 35.00% | 35.00% | ||
Reorganization items | 0.00% | 0.00% | ||
Effect of foreign operations | (12.00%) | (2.00%) | ||
Change in deferred tax asset valuation allowance | (20.00%) | (32.00%) | ||
Other, net | (1.00%) | (1.00%) | ||
Effective tax rate | 2.00% | 0.00% | ||
Predecessor [Member] | ||||
Statutory Federal tax rate | 35.00% | 35.00% | ||
Reorganization items | (46.00%) | 0.00% | ||
Effect of foreign operations | 0.00% | (2.00%) | ||
Change in deferred tax asset valuation allowance | 9.00% | (35.00%) | ||
Other, net | 2.00% | 2.00% | ||
Effective tax rate | 0.00% | 0.00% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Net operating losses and capital loss carryforwards | $ 6,363,915 | $ 5,094,306 |
Allowance for doubtful accounts | 17,867 | 13,644 |
Accrued expenses | 54,263 | 54,823 |
Accrual for contingent liabilities | 24,669 | 18,413 |
Intangible assets | 130,983 | 0 |
Property, plant and equipment | 253,882 | 147,774 |
Leasing related activity | 25,822 | 3,543 |
Equity compensation | 1,182 | 701 |
Long term debt | 53,159 | 68,159 |
Inventory reserve | 1,729 | 1,982 |
Other | 17,573 | 34,033 |
Total deferred tax asset before allowances | 6,945,044 | 5,437,378 |
Valuation allowance | (6,945,044) | (5,290,813) |
Total deferred tax asset | 0 | 146,565 |
Intangible assets | 0 | 149,749 |
Total deferred tax liability | 0 | 149,749 |
Net deferred tax liability | $ 0 | $ (3,184) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Taxable income before net operating loss deduction (as percent) | 30.00% |
Spain [Member] | |
Net operating loss carryforwards | $ 847.9 |
Net operating loss carryforwards, expiration period | 18 years |
Netherlands [Member] | |
Net operating loss carryforwards, expiration period | 9 years |
Minimum [Member] | |
Net operating loss carryforwards | $ 1,200 |
Maximum [Member] | |
Net operating loss carryforwards | 8,500 |
Domestic, State, And Local Jurisdiction [Member] | |
Net operating loss carryforwards | 1,400 |
Operating loss carryfowards, annual limitation | 40.2 |
Operating loss carryforwards | 888.1 |
Nextel Brazil [Member] | |
Net operating loss carryforwards | $ 1,600 |
Income Taxes (Deferred Tax As76
Income Taxes (Deferred Tax Asset Valuation Allowance) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Successor [Member] | ||
Deferred tax assets, valuation allowance | $ 6,945,044 | $ 5,290,813 |
Successor [Member] | Brazil [Member] | ||
Deferred tax assets, valuation allowance | 1,089,900 | |
Successor [Member] | U.S. [Member] | ||
Deferred tax assets, valuation allowance | 367,200 | |
Successor [Member] | Luxembourg [Member] | ||
Deferred tax assets, valuation allowance | 5,275,900 | |
Successor [Member] | Spain [Member] | ||
Deferred tax assets, valuation allowance | $ 212,000 | |
Predecessor [Member] | ||
Deferred tax assets, valuation allowance | 5,290,800 | |
Predecessor [Member] | Brazil [Member] | ||
Deferred tax assets, valuation allowance | 500,800 | |
Predecessor [Member] | U.S. [Member] | ||
Deferred tax assets, valuation allowance | 359,800 | |
Predecessor [Member] | Luxembourg [Member] | ||
Deferred tax assets, valuation allowance | 4,216,000 | |
Predecessor [Member] | Spain [Member] | ||
Deferred tax assets, valuation allowance | $ 214,200 |
Employee Stock and Benefit Pl77
Employee Stock and Benefit Plans (Narrative) (Details) - USD ($) | Jun. 30, 2015 | Jun. 27, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | Jun. 26, 2015 |
Number of shares available for grant (in shares) | 5,263,158 | |||||||
Expiration period of awards granted | 10 years | |||||||
Restricted stock units granted (in shares) | 41,721 | 2,821,457 | ||||||
Number of shares limit in aggregate shares made by chief executive officer (in shares) | 40,000 | |||||||
Number of restricted stock shares limit in aggregate made by chief executive officer (in shares) | 20,000 | |||||||
Share-based payment expense related to stock options | $ 1,000,000 | $ 1,500,000 | $ 2,800,000 | $ 4,000,000 | ||||
Vesting rights (as percent) | 33.00% | |||||||
Award vesting period | 3 years | |||||||
Weighted average fair value of the stock option awards on their grant dates (in dollars per share) | $ 2.98 | $ 1.48 | ||||||
Share-based payment expense related to restricted stock | $ 1,900,000 | $ 2,300,000 | $ 3,400,000 | $ 10,400,000 | ||||
Pro-rata Options [Member] | ||||||||
Expiration period of awards granted | 90 days | |||||||
Restricted Stock [Member] | ||||||||
Restricted stock, granted (in shares) | 564,311 | 0 | ||||||
Unrecognized compensation cost | $ 3,100,000 | |||||||
Recognized over a weighted average period | 1 year 5 months 28 days | |||||||
Stock Options [Member] | ||||||||
Stock options, granted (in shares) | 1,580,208 | 468,069 | 553,280 | |||||
Unrecognized compensation cost | $ 4,100,000 | |||||||
Recognized over a weighted average period | 1 year 8 months 20 days | |||||||
Number of options, exercised (in shares) | 0 | |||||||
Aggregate intrinsic value of options, outstanding | $ 0 |
Employee Stock and Benefit Pl78
Employee Stock and Benefit Plans (Summary of Stock Option Activity Under All Plans) (Details) - Stock Options [Member] - USD ($) | Jun. 30, 2015 | Jun. 27, 2015 | Dec. 31, 2016 |
Number of Options | |||
Number of Options Outstanding, ending balance (in shares) | 3,276,105 | ||
Number of Options, Granted (in shares) | 1,580,208 | 468,069 | 553,280 |
Number of Options, Exercised (in shares) | 0 | ||
Number of Options, Forfeited (in shares) | (904,664) | ||
Number of Options Outstanding, beginning balance (in shares) | 3,627,489 | ||
Number of Options, Exercisable (in shares) | 997,926 | ||
Weighted Average Exercise Price per Option | |||
Weighted Average Exercise Price per Option, Outstanding, beginning balance (in dollars per share) | $ 11.53 | ||
Weighted Average Exercise Price per Option, Granted (in dollars per share) | 3.83 | ||
Weighted Average Exercise Price per Option, Exercised (in dollars per share) | 0 | ||
Weighted Average Exercise Price per Option, Forfeited (in dollars per share) | 11.86 | ||
Weighted Average Exercise Price per Option, Outstanding, ending balance (in dollars per share) | 10.14 | ||
Weighted Average Exercise Price per Option, ending balance, Exercisable (in dollars per share) | $ 10.80 | ||
Weighted Average Remaining Life | |||
Weighted Average Remaining Life of Options, Outstanding | 7 years 8 months 26 days | ||
Weighted Average Remaining Life, Exercisable | 6 years 11 months 8 days | ||
Aggregate Intrinsic Value of Options, Outstanding | $ 0 | ||
Aggregate Intrinsic Value of Options, Exercisable | $ 0 |
Employee Stock and Benefit Pl79
Employee Stock and Benefit Plans (Assumptions in Option Pricing Model) (Details) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Dec. 31, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Risk free interest rate, minimum | 1.71% | 1.53% |
Risk free interest rate, maximum | 2.05% | 1.90% |
Expected stock price volatility, minimum | 31.73% | 40.71% |
Expected stock price volatility, maximum | 41.92% | 40.87% |
Expected term in years | 5 years 1 month 28 days | |
Expected term in years, minimum | 5 years 1 month 28 days | |
Expected term in years, maximum | 6 years | |
Expected dividend yield | 0.00% | 0.00% |
Employee Stock and Benefit Pl80
Employee Stock and Benefit Plans (Summary of the Status of Non-Vested Restricted Stock Awards) (Details) - Restricted Stock [Member] - $ / shares | Jun. 30, 2015 | Dec. 31, 2016 |
Number of Shares | ||
Restricted stock awards as of December 31, 2015 | 997,444 | |
Granted | 564,311 | 0 |
Vested | (347,618) | |
Forfeited | (127,384) | |
Restricted stock awards as of December 31, 2016 | 522,442 | |
Weighted Average Grant Date Fair Value Per Share | ||
Weighted Average Grant Date Fair Value Per Share, Restricted Stock Awards (in dollars per share) | $ 11.71 | |
Weighted Average Grant Date Fair Value Per Share, Granted (in dollars per share) | 0 | |
Weighted Average Grant Date Fair Value Per Share, Vested (in dollars per share) | 11.73 | |
Weighted Average Grant Date Fair Value Per Share, Forfeited (in dollars per share) | 12.88 | |
Weighted Average Grant Date Fair Value Per Share, Restricted Stock Awards (in dollars per share) | $ 10.65 |
Segment Information (Segment Re
Segment Information (Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Predecessor [Member] | ||||||||||||
Operating revenues | $ 683,711 | $ 1,848,954 | ||||||||||
Segment earnings (losses) | (113,216) | (256,832) | ||||||||||
Impairment, restructuring and other charges | 36,792 | 105,664 | ||||||||||
Depreciation and amortization | (153,878) | (394,061) | ||||||||||
Foreign currency transaction gains (losses), net | (63,948) | (51,149) | ||||||||||
Interest expense and other, net | (67,630) | (340,388) | ||||||||||
Loss from continuing operations before reorganization items and income tax provision | (435,464) | (1,148,094) | ||||||||||
Capital expenditures | 69,203 | 233,362 | ||||||||||
Predecessor [Member] | Brazil [Member] | ||||||||||||
Operating revenues | 683,611 | 1,848,918 | ||||||||||
Segment earnings (losses) | (75,234) | (133,691) | ||||||||||
Capital expenditures | 68,385 | 218,855 | ||||||||||
Predecessor [Member] | Corporate and Eliminations [Member] | ||||||||||||
Operating revenues | 100 | 36 | ||||||||||
Segment earnings (losses) | (37,982) | (123,141) | ||||||||||
Capital expenditures | 818 | $ 14,507 | ||||||||||
Successor [Member] | ||||||||||||
Operating revenues | $ 248,440 | $ 260,836 | $ 249,213 | $ 226,557 | $ 244,782 | $ 284,652 | $ 320,302 | $ 363,409 | $ 529,434 | $ 985,046 | ||
Segment earnings (losses) | (42,025) | 30,365 | ||||||||||
Impairment, restructuring and other charges | 32,308 | 1,384,811 | ||||||||||
Depreciation and amortization | (85,364) | (172,383) | ||||||||||
Foreign currency transaction gains (losses), net | (99,737) | 76,615 | ||||||||||
Interest expense and other, net | (39,539) | (85,754) | ||||||||||
Loss from continuing operations before reorganization items and income tax provision | (298,973) | (1,535,968) | ||||||||||
Capital expenditures | 72,612 | 51,307 | ||||||||||
Identifiable assets | 1,418,509 | 2,729,908 | $ 3,481,197 | 2,729,908 | $ 3,481,197 | 1,418,509 | ||||||
Successor [Member] | Brazil [Member] | ||||||||||||
Operating revenues | 529,332 | 984,878 | ||||||||||
Segment earnings (losses) | (15,925) | 67,186 | ||||||||||
Capital expenditures | 72,112 | 51,307 | ||||||||||
Identifiable assets | 1,000,098 | 1,989,753 | 1,989,753 | 1,000,098 | ||||||||
Successor [Member] | Corporate and Eliminations [Member] | ||||||||||||
Operating revenues | 102 | 168 | ||||||||||
Segment earnings (losses) | (26,100) | (36,821) | ||||||||||
Capital expenditures | 500 | 0 | ||||||||||
Identifiable assets | $ 418,411 | $ 740,155 | $ 740,155 | $ 418,411 |
Quarterly Financial Data (Una82
Quarterly Financial Data (Unaudited) (Quarterly Financial Data) (Details) - Successor [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2016 | |
Operating revenues | $ 248,440 | $ 260,836 | $ 249,213 | $ 226,557 | $ 244,782 | $ 284,652 | $ 320,302 | $ 363,409 | $ 529,434 | $ 985,046 |
Operating loss | (57,318) | (1,386,696) | (28,751) | (54,064) | (82,045) | (77,652) | (198,075) | (105,811) | (159,697) | (1,526,829) |
Net loss from continuing operations | (84,722) | (1,411,554) | (4,796) | (32,807) | (90,542) | (201,949) | 1,737,808 | (218,407) | (292,491) | (1,533,879) |
Net loss from discontinued operations | $ (3,749) | $ (7,389) | $ (5,075) | $ (3,781) | $ (920) | $ 12,528 | $ 312,225 | $ (91,111) | $ 11,608 | $ (19,994) |
Net (loss) income from continuing operations, per common share, basic (in dollars per share) | $ (0.84) | $ (14.10) | $ (0.05) | $ (0.33) | $ (0.90) | $ (2.02) | $ 10.04 | $ (1.27) | $ (2.93) | $ (15.32) |
Net (loss) income from continuing operations, per common share, basic (in dollars per share) | (0.04) | (0.07) | (0.05) | (0.04) | (0.01) | 0.12 | 1.80 | (0.53) | 0.12 | (0.20) |
Net (loss) income from discontinued operations, per common share, basic (in dollars per share) | (0.84) | (14.10) | (0.05) | (0.33) | (0.90) | (2.02) | 10.03 | (1.27) | (2.93) | (15.32) |
Net income (loss) from discontinued operations per common share, diluted (in dollars per share) | $ (0.04) | $ (0.07) | $ (0.05) | $ (0.04) | $ (0.01) | $ 0.12 | $ 1.80 | $ (0.53) | $ 0.12 | $ (0.20) |
Quarterly Financial Data (Una83
Quarterly Financial Data (Unaudited) Quarterly Financial Data (Unaudited) (Narrative) (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2015subsidiary | Sep. 11, 2015subsidiary | |
Segment Reporting Information [Line Items] | ||||
Prior period reclassification adjustment | $ 6.9 | |||
Number of indirect subsidiaries in binding agreement | subsidiary | 2 | 2 | ||
Nextel Brazil [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Non-cash impairment charge | $ 1,340 |
Schedule I - Condensed Financ84
Schedule I - Condensed Financial Information of Registrant (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Current liabilities | |||
Total stockholders’ equity | $ 2,067,565 | ||
Successor [Member] | |||
Current assets | |||
Cash and cash equivalents | $ 257,380 | $ 342,184 | 423,135 |
Short-term investments | 73,859 | 84,317 | |
Prepaid expenses and other | 280,145 | 132,534 | |
Total current assets | 773,485 | 728,022 | |
Intangible assets, net | 243,681 | 892,622 | |
Total assets | 1,418,509 | 2,729,908 | 3,481,197 |
Current liabilities | |||
Total current liabilities | 893,173 | 905,429 | |
Other long-term liabilities | 143,472 | 197,837 | |
Total stockholders’ equity | 166,022 | 1,543,995 | $ 2,067,665 |
Total liabilities and stockholders’ equity | 1,418,509 | 2,729,908 | |
Successor [Member] | NII Holdings Inc. (Parent) [Member] | |||
Current assets | |||
Cash and cash equivalents | 54,101 | 56,011 | |
Short-term investments | 1,242 | 1,202 | |
Prepaid expenses and other | 0 | 61 | |
Total current assets | 55,343 | 57,274 | |
Intangible assets, net | 0 | 37,956 | |
Long-term intercompany receivables | 3,146 | 281 | |
Investment in subsidiaries | 112,503 | 4,752,755 | |
Total assets | 170,992 | 4,848,266 | |
Current liabilities | |||
Short-term intercompany payables | 4,570 | 4,570 | |
Total current liabilities | 4,570 | 4,570 | |
Total current liabilities | 0 | 3,296,117 | |
Other long-term liabilities | 400 | 3,584 | |
Total liabilities | 4,970 | 3,304,271 | |
Total stockholders’ equity | 166,022 | 1,543,995 | |
Total liabilities and stockholders’ equity | $ 170,992 | $ 4,848,266 |
Schedule I - Condensed Financ85
Schedule I - Condensed Financial Information of Registrant (Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Successor [Member] | |||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||
Operating revenues | $ 248,440 | $ 260,836 | $ 249,213 | $ 226,557 | $ 244,782 | $ 284,652 | $ 320,302 | $ 363,409 | $ 529,434 | $ 985,046 | |||
Selling, general and administrative | 311,703 | 560,760 | |||||||||||
Impairment, restructuring and other charges | 32,308 | 1,384,811 | |||||||||||
Total operating expenses | 689,131 | 2,511,875 | |||||||||||
Operating loss | (57,318) | (1,386,696) | (28,751) | (54,064) | (82,045) | (77,652) | (198,075) | (105,811) | (159,697) | (1,526,829) | |||
Interest expense, net | (55,563) | (113,732) | |||||||||||
Other (expense) income, net | (1,176) | (9,711) | |||||||||||
Total other expense | (139,276) | (9,139) | |||||||||||
Loss from continuing operations before reorganization items and income tax benefit (provision) | (298,973) | (1,535,968) | |||||||||||
Total reorganization items | 1,467 | (803) | |||||||||||
Income tax benefit (provision) (Note 11) | 5,015 | 2,892 | |||||||||||
Net (loss) income from continuing operations | (84,722) | (1,411,554) | (4,796) | (32,807) | (90,542) | (201,949) | 1,737,808 | (218,407) | (292,491) | (1,533,879) | |||
(Loss) income from discontinued operations, net of income taxes | $ 3,749 | $ 7,389 | $ 5,075 | $ 3,781 | $ 920 | $ (12,528) | $ (312,225) | $ 91,111 | (11,608) | 19,994 | |||
Net (loss) income | $ (280,883) | (280,883) | (1,553,873) | ||||||||||
Comprehensive (loss) income, net of income taxes | |||||||||||||
Foreign currency translation adjustment | (248,781) | 169,785 | |||||||||||
Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Chile | (1,672) | 0 | |||||||||||
Other | 4,734 | 0 | |||||||||||
Other comprehensive income (loss) | (245,719) | (245,719) | 169,785 | ||||||||||
Net (loss) income | $ (280,883) | (280,883) | (1,553,873) | ||||||||||
Total comprehensive (loss) income | (526,602) | (1,384,088) | |||||||||||
Successor [Member] | NII Holdings Inc. (Parent) [Member] | |||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||
Operating revenues | 0 | 0 | |||||||||||
Selling, general and administrative | 0 | 0 | |||||||||||
Impairment, restructuring and other charges | 0 | 36,839 | |||||||||||
Depreciation and amortization | 744 | 1,116 | |||||||||||
Total operating expenses | 744 | 37,955 | |||||||||||
Operating loss | (744) | (37,955) | |||||||||||
Interest expense, net | 0 | 0 | |||||||||||
Intercompany interest expense | (118,365) | (117,078) | |||||||||||
Interest income | 0 | 0 | |||||||||||
Intercompany interest income | 97 | 197 | |||||||||||
Equity in (loss) income of affiliates | (167,324) | (1,401,998) | |||||||||||
Other (expense) income, net | (3) | (206) | |||||||||||
Total other expense | (285,595) | (1,519,085) | |||||||||||
Loss from continuing operations before reorganization items and income tax benefit (provision) | (286,339) | (1,557,040) | |||||||||||
Total reorganization items | (373) | 0 | |||||||||||
Income tax benefit (provision) (Note 11) | (448) | 3,183 | |||||||||||
Net (loss) income from continuing operations | (287,160) | (1,553,857) | |||||||||||
(Loss) income from discontinued operations, net of income taxes | (6,277) | 16 | |||||||||||
Net (loss) income | (280,883) | (1,553,873) | |||||||||||
Comprehensive (loss) income, net of income taxes | |||||||||||||
Foreign currency translation adjustment | (248,781) | 169,785 | |||||||||||
Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Chile | (1,672) | 0 | |||||||||||
Other | 4,734 | 0 | |||||||||||
Other comprehensive income (loss) | (245,719) | 169,785 | |||||||||||
Net (loss) income | (280,883) | (1,553,873) | |||||||||||
Total comprehensive (loss) income | (526,602) | $ (1,384,088) | |||||||||||
Predecessor [Member] | |||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||
Operating revenues | $ 683,711 | $ 1,848,954 | |||||||||||
Selling, general and administrative | 419,699 | 997,735 | |||||||||||
Impairment, restructuring and other charges | 36,792 | 105,664 | |||||||||||
Total operating expenses | 987,597 | 2,605,511 | |||||||||||
Operating loss | (303,886) | (756,557) | |||||||||||
Interest expense, net | (82,820) | (372,904) | |||||||||||
Other (expense) income, net | (137) | (5,829) | |||||||||||
Total other expense | (131,578) | (391,537) | |||||||||||
Loss from continuing operations before reorganization items and income tax benefit (provision) | (435,464) | (1,148,094) | |||||||||||
Total reorganization items | 1,956,874 | (71,601) | |||||||||||
Income tax benefit (provision) (Note 11) | (2,009) | (4,976) | |||||||||||
Net (loss) income from continuing operations | 1,519,401 | (1,224,671) | |||||||||||
(Loss) income from discontinued operations, net of income taxes | (221,114) | 733,027 | |||||||||||
Net (loss) income | 1,740,515 | (1,957,698) | |||||||||||
Comprehensive (loss) income, net of income taxes | |||||||||||||
Foreign currency translation adjustment | (205,899) | (340,847) | |||||||||||
Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Chile | 421,953 | (33,885) | |||||||||||
Other | 2,956 | (544) | |||||||||||
Other comprehensive income (loss) | 219,010 | (375,276) | |||||||||||
Net (loss) income | 1,740,515 | (1,957,698) | |||||||||||
Total comprehensive (loss) income | 1,959,525 | (2,332,974) | |||||||||||
Predecessor [Member] | NII Holdings Inc. (Parent) [Member] | |||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||
Operating revenues | 0 | 0 | |||||||||||
Selling, general and administrative | 429 | 2,145 | |||||||||||
Impairment, restructuring and other charges | 0 | 0 | |||||||||||
Depreciation and amortization | 0 | 0 | |||||||||||
Total operating expenses | 429 | 2,145 | |||||||||||
Operating loss | (429) | (2,145) | |||||||||||
Interest expense, net | (119) | (570) | |||||||||||
Intercompany interest expense | (159,117) | (165,324) | |||||||||||
Interest income | 37 | 691 | |||||||||||
Intercompany interest income | 125 | 0 | |||||||||||
Equity in (loss) income of affiliates | 1,793,151 | (1,805,438) | |||||||||||
Other (expense) income, net | 995 | 8,212 | |||||||||||
Total other expense | 1,635,072 | (1,962,429) | |||||||||||
Loss from continuing operations before reorganization items and income tax benefit (provision) | 1,634,643 | (1,964,574) | |||||||||||
Total reorganization items | 68,355 | (291) | |||||||||||
Income tax benefit (provision) (Note 11) | (1,002) | 7,167 | |||||||||||
Net (loss) income from continuing operations | 1,701,996 | (1,957,698) | |||||||||||
(Loss) income from discontinued operations, net of income taxes | (38,519) | 0 | |||||||||||
Net (loss) income | (280,883) | 1,740,515 | (1,957,698) | ||||||||||
Comprehensive (loss) income, net of income taxes | |||||||||||||
Foreign currency translation adjustment | (205,899) | (340,847) | |||||||||||
Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Chile | 421,953 | (33,885) | |||||||||||
Other | 2,956 | (544) | |||||||||||
Other comprehensive income (loss) | 219,010 | (375,276) | |||||||||||
Net (loss) income | $ (280,883) | 1,740,515 | (1,957,698) | ||||||||||
Total comprehensive (loss) income | $ 1,959,525 | $ (2,332,974) |
Schedule I - Condensed Financ86
Schedule I - Condensed Financial Information of Registrant (Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Successor [Member] | |||||
Cash flows from operating activities: | |||||
Net (loss) income | $ (280,883) | $ (280,883) | $ (1,553,873) | ||
Net cash used in operating activities | (78,485) | (45,205) | |||
Cash flows from investing activities: | |||||
Changes in restricted cash and escrow accounts | (51,235) | 67,894 | |||
Other, net | 4,697 | (2,243) | |||
Net cash provided by (used in) investing activities | (976) | 54,450 | |||
Cash flows from financing activities: | |||||
Net cash used in financing activities | (25,068) | (93,004) | |||
Net (decrease) increase in cash and cash equivalents | (80,951) | (84,804) | |||
Cash and cash equivalents, beginning of period | 423,135 | 342,184 | |||
Cash and cash equivalents, end of period | 342,184 | 342,184 | $ 423,135 | 257,380 | |
Successor [Member] | NII Holdings Inc. (Parent) [Member] | |||||
Cash flows from operating activities: | |||||
Net (loss) income | (280,883) | (1,553,873) | |||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | 1,554,075 | ||||
Net cash used in operating activities | 202 | ||||
Cash flows from investing activities: | |||||
Changes in restricted cash and escrow accounts | 0 | ||||
Investments in subsidiaries | (36,356) | ||||
Return of investments in subsidiaries | 34,260 | ||||
Other, net | (16) | ||||
Net cash provided by (used in) investing activities | (2,112) | ||||
Cash flows from financing activities: | |||||
Other, net | 0 | ||||
Net cash used in financing activities | 0 | ||||
Net (decrease) increase in cash and cash equivalents | (1,910) | ||||
Cash and cash equivalents, beginning of period | 56,011 | ||||
Cash and cash equivalents, end of period | 56,011 | 56,011 | 54,101 | ||
Predecessor [Member] | |||||
Cash flows from operating activities: | |||||
Net (loss) income | 1,740,515 | $ (1,957,698) | |||
Net cash used in operating activities | (254,757) | (628,716) | |||
Cash flows from investing activities: | |||||
Changes in restricted cash and escrow accounts | (57,074) | (132,080) | |||
Other, net | 3,501 | (782) | |||
Net cash provided by (used in) investing activities | 1,027,821 | (347,538) | |||
Cash flows from financing activities: | |||||
Net cash used in financing activities | (778,231) | (128,272) | |||
Net (decrease) increase in cash and cash equivalents | 88,941 | (813,488) | |||
Cash and cash equivalents, beginning of period | 423,135 | 334,194 | 1,147,682 | ||
Cash and cash equivalents, end of period | 423,135 | 334,194 | |||
Predecessor [Member] | NII Holdings Inc. (Parent) [Member] | |||||
Cash flows from operating activities: | |||||
Net (loss) income | (280,883) | 1,740,515 | (1,957,698) | ||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | 280,910 | (1,735,521) | 1,861,773 | ||
Net cash used in operating activities | 27 | 4,994 | (95,925) | ||
Cash flows from investing activities: | |||||
Changes in restricted cash and escrow accounts | 0 | 0 | 25,300 | ||
Investments in subsidiaries | (29,690) | (61,405) | (180,712) | ||
Return of investments in subsidiaries | 35,315 | 23 | 0 | ||
Other, net | 0 | 0 | 1,856 | ||
Net cash provided by (used in) investing activities | 5,625 | (61,382) | (153,556) | ||
Cash flows from financing activities: | |||||
Other, net | 0 | 0 | (86) | ||
Net cash used in financing activities | 0 | 0 | (86) | ||
Net (decrease) increase in cash and cash equivalents | 5,652 | (56,388) | (249,567) | ||
Cash and cash equivalents, beginning of period | 50,359 | 106,747 | $ 56,011 | 356,314 | |
Cash and cash equivalents, end of period | $ 56,011 | $ 56,011 | $ 50,359 | $ 106,747 |
Schedule I - Condensed Financ87
Schedule I - Condensed Financial Information of Registrant (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||
Cash Dividends Paid to Parent Company | $ 0 | $ 0 | $ 33,900,000 | $ 0 |
Schedule II - Valuation and Q88
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Reduction of Allowance for Doubtful Accounts Resulting From Fresh Start Accounting | $ 50,600 | ||||
Allowance for doubtful accounts | |||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Balance at Beginning of Period | 0 | $ 30,749 | $ 39,033 | $ 35,458 | |
Charged to Costs and Expenses | 32,279 | 65,396 | 77,883 | 57,418 | |
Deductions and Other Adjustments | [1] | 6,754 | (96,145) | (62,695) | (62,127) |
Balance at End of Period | 39,033 | 0 | 54,221 | 30,749 | |
Allowance for doubtful accounts | |||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Balance at Beginning of Period | 4,388,792 | 4,447,133 | 5,290,813 | 4,145,002 | |
Charged to Costs and Expenses | 1,010,438 | 22,828 | 1,555,006 | 340,425 | |
Deductions and Other Adjustments | [1] | (108,417) | (81,169) | 99,225 | (38,294) |
Balance at End of Period | $ 5,290,813 | $ 4,388,792 | $ 6,945,044 | $ 4,447,133 | |
[1] | Balance atBeginning ofPeriod Charged toCosts andExpenses Deductionsand OtherAdjustments (1) Balance atEnd ofPeriodYear Ended December 31, 2016 — Successor Company Allowance for doubtful accounts$39,033 $77,883 $(62,695) $54,221Valuation allowance for deferred tax assets$5,290,813 $1,555,006 $99,225 $6,945,044Six Months Ended December 31, 2015 — Successor Company Allowance for doubtful accounts$— $32,279 $6,754(2)$39,033Valuation allowance for deferred tax assets$4,388,792 $1,010,438 $(108,417) $5,290,813Six Months Ended June 30, 2015 — Predecessor Company Allowance for doubtful accounts$30,749 $65,396 $(96,145)(3)$—Valuation allowance for deferred tax assets$4,447,133 $22,828 $(81,169) $4,388,792Year Ended December 31, 2014 — Predecessor Company Allowance for doubtful accounts$35,458 $57,418 $(62,127) $30,749Valuation allowance for deferred tax assets$4,145,002 $340,425 $(38,294) $4,447,133_______________________________________(1)Includes the impact of foreign currency translation adjustments.(2)Includes the impact of cash collections subsequent to the implementation of fresh start accounting.(3)Includes the impact of a $50.6 million reduction to allowance for doubtful accounts resulting from the application of fresh start accounting. |