Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 07, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 55,808,063 | ||
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 | 100,479,833 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 193,888 | $ 257,380 |
Short-term investments | 16,711 | 73,859 |
Accounts receivable, net of allowance for doubtful accounts of $42,011 and $54,221 | 106,715 | 153,806 |
Handset and accessory inventory | 3,163 | 8,295 |
Prepaid expenses and other | 254,461 | 280,145 |
Total current assets | 574,938 | 773,485 |
Property, plant and equipment, net | 117,262 | 129,475 |
Intangible assets, net | 194,694 | 243,681 |
Other assets | 218,204 | 271,868 |
Total assets | 1,105,098 | 1,418,509 |
Current liabilities | ||
Accounts payable | 42,284 | 69,186 |
Accrued expenses and other | 300,815 | 271,899 |
Deferred revenues | 7,314 | 11,614 |
Current portion of long-term debt | 7,990 | 540,474 |
Total current liabilities | 358,403 | 893,173 |
Long-term debt | 647,717 | 215,842 |
Other long-term liabilities | 220,925 | 143,472 |
Total liabilities | 1,227,045 | 1,252,487 |
Commitments and contingencies (Note 9) | ||
Stockholders’ (deficit) 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, 100,384 shares issued and outstanding — 2017, 100,258 shares issued and outstanding — 2016 | 100 | 100 |
Paid-in capital | 2,139,299 | 2,076,612 |
Accumulated deficit | (2,135,770) | (1,834,756) |
Accumulated other comprehensive loss | (46,903) | (75,934) |
Total NII Holdings stockholders’ (deficit) equity | (121,947) | 166,022 |
Noncontrolling interest | (78,673) | 0 |
Total (deficit) equity | (43,274) | 166,022 |
Total liabilities and stockholders’ (deficit) equity | $ 1,105,098 | $ 1,418,509 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
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) | 100,258,221 | 100,001,227 |
Common stock shares outstanding (in shares) | 100,258,221 | 100,001,227 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other (expense) income | ||||
Net loss attributable to noncontrolling interest | $ 49,600,000 | |||
Successor [Member] | ||||
Operating revenues | ||||
Service and other revenues | $ 501,130,000 | 847,879,000 | $ 963,209,000 | |
Handset and accessory revenues | 28,304,000 | 21,888,000 | 21,837,000 | |
Total operating revenues | 529,434,000 | 869,767,000 | 985,046,000 | |
Operating expenses | ||||
Cost of service (exclusive of depreciation and amortization included below) | 212,852,000 | 374,637,000 | 364,648,000 | |
Cost of handsets and accessories | 46,904,000 | 40,207,000 | 29,273,000 | |
Selling, general and administrative | 311,703,000 | 510,168,000 | 560,760,000 | |
Impairment, restructuring and other charges | 32,308,000 | 179,727,000 | 1,384,811,000 | |
Depreciation | 64,108,000 | 22,192,000 | 135,429,000 | |
Amortization | 21,256,000 | 14,995,000 | 36,954,000 | |
Total operating expenses | 689,131,000 | 1,141,926,000 | 2,511,875,000 | |
Operating loss | (159,697,000) | (272,159,000) | (1,526,829,000) | |
Other (expense) income | ||||
Interest expense, net | (55,563,000) | (118,605,000) | (113,732,000) | |
Interest income | 17,200,000 | 41,507,000 | 37,689,000 | |
Foreign currency transaction (losses) gains, net | (99,737,000) | (1,271,000) | 76,615,000 | |
Other expense, net | (1,176,000) | (7,930,000) | (9,711,000) | |
Total other expense | (139,276,000) | (86,299,000) | (9,139,000) | |
Loss from continuing operations before reorganization items and income tax benefit (provision) | (298,973,000) | (358,458,000) | (1,535,968,000) | |
Reorganization items (Note 3) | 1,467,000 | 445,000 | (803,000) | |
Income tax benefit (provision) (Note 11) | 5,015,000 | 6,347,000 | 2,892,000 | |
Net (loss) income from continuing operations | (292,491,000) | (351,666,000) | (1,533,879,000) | |
Income (loss) from discontinued operations, net of income taxes (Note 6) | 11,608,000 | 1,005,000 | (19,994,000) | |
Net (loss) income | (280,883,000) | (350,661,000) | (1,553,873,000) | |
Net loss attributable to noncontrolling interest | 0 | (49,647,000) | 0 | |
Net (loss) income attributable to NII Holdings | $ (280,883,000) | $ (301,014,000) | $ (1,553,873,000) | |
Net (loss) income from continuing operations per common share, basic | $ (2.93) | $ (3.51) | $ (15.32) | |
Net income (loss) from discontinued operations per common share, basic | 0.12 | 0.01 | (0.20) | |
Net (loss) income attributable to NII Holdings per common share, basic | (2.81) | (3.50) | (15.52) | |
Net (loss) income from continuing operations per common share, diluted | (2.93) | (3.51) | (15.32) | |
Net income (loss) from discontinued operations per common share, diluted | 0.12 | 0.01 | (0.20) | |
Net (loss) income attributable to NII Holdings per common share, diluted | $ (2.81) | $ (3.50) | $ (15.52) | |
Weighted average number of common shares outstanding, basic | 100,000 | 100,332 | 100,098 | |
Weighted average number of common shares outstanding, diluted | 100,000 | 100,332 | 100,098 | |
Comprehensive (loss) income, net of income taxes | ||||
Foreign currency translation adjustment | $ (248,781,000) | $ 7,696,000 | $ 169,785,000 | |
Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Chile (Note 6) | (1,672,000) | 0 | 0 | |
Other | 4,734,000 | 0 | 0 | |
Other comprehensive income (loss) | (245,719,000) | 7,696,000 | 169,785,000 | |
Net (loss) income attributable to NII Holdings | (280,883,000) | (301,014,000) | (1,553,873,000) | |
Total comprehensive (loss) income attributable to NII Holdings | $ (526,602,000) | $ (293,318,000) | $ (1,384,088,000) | |
Predecessor [Member] | ||||
Operating revenues | ||||
Service and other revenues | $ 643,904,000 | |||
Handset and accessory revenues | 39,807,000 | |||
Total operating revenues | 683,711,000 | |||
Operating expenses | ||||
Cost of service (exclusive of depreciation and amortization included below) | 256,085,000 | |||
Cost of handsets and accessories | 121,143,000 | |||
Selling, general and administrative | 419,699,000 | |||
Impairment, restructuring and other charges | 36,792,000 | |||
Depreciation | 126,789,000 | |||
Amortization | 27,089,000 | |||
Total operating expenses | 987,597,000 | |||
Operating loss | (303,886,000) | |||
Other (expense) income | ||||
Interest expense, net | (82,820,000) | |||
Interest income | 15,327,000 | |||
Foreign currency transaction (losses) gains, net | (63,948,000) | |||
Other expense, net | (137,000) | |||
Total other expense | (131,578,000) | |||
Loss from continuing operations before reorganization items and income tax benefit (provision) | (435,464,000) | |||
Reorganization items (Note 3) | 1,956,874,000 | |||
Income tax benefit (provision) (Note 11) | (2,009,000) | |||
Net (loss) income from continuing operations | 1,519,401,000 | |||
Income (loss) from discontinued operations, net of income taxes (Note 6) | 221,114,000 | |||
Net (loss) income | 1,740,515,000 | |||
Net loss attributable to noncontrolling interest | 0 | |||
Net (loss) income attributable to NII Holdings | $ 1,740,515,000 | |||
Net (loss) income from continuing operations per common share, basic | $ 8.73 | |||
Net income (loss) from discontinued operations per common share, basic | 1.27 | |||
Net (loss) income attributable to NII Holdings per common share, basic | 10 | |||
Net (loss) income from continuing operations per common share, diluted | 8.71 | |||
Net income (loss) from discontinued operations per common share, diluted | 1.27 | |||
Net (loss) income attributable to NII Holdings per common share, diluted | $ 9.98 | |||
Weighted average number of common shares outstanding, basic | 172,363 | |||
Weighted average number of common shares outstanding, diluted | 172,691 | |||
Comprehensive (loss) income, net of income taxes | ||||
Foreign currency translation adjustment | $ (205,899,000) | |||
Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Chile (Note 6) | 421,953,000 | |||
Other | 2,956,000 | |||
Other comprehensive income (loss) | 219,010,000 | |||
Net (loss) income attributable to NII Holdings | 1,740,515,000 | |||
Total comprehensive (loss) income attributable to NII Holdings | $ 1,959,525,000 |
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 | Noncontrolling Interest |
Stockholders' Equity Attributable to Parent | Predecessor [Member] | $ (1,964,764) | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | Predecessor [Member] | 1,740,515 | |||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Predecessor [Member] | 219,010 | |||||
Beginning Balance, Shares (Predecessor [Member]) at Dec. 31, 2014 | 172,363 | |||||
Beginning 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 attributable to NII Holdings | 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 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | Successor [Member] | (280,883) | |||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Successor [Member] | (245,719) | |||||
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 attributable to NII Holdings | Successor [Member] | (280,883) | |||||
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) | |
Stockholders' Equity Attributable to Parent | Successor [Member] | 2,067,665 | |||||
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 attributable to NII Holdings | 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) | |
Stockholders' Equity Attributable to Parent | Successor [Member] | 1,543,995 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | Successor [Member] | (1,553,873) | |||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Successor [Member] | 169,785 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income attributable to NII Holdings | 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) | |
Noncontrolling interest | Successor [Member] | 0 | |||||
Stockholders' Equity Attributable to Parent | Successor [Member] | 166,022 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | Successor [Member] | (301,014) | (301,014) | $ (49,647) | |||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | Successor [Member] | 7,696 | 7,696 | 1,604 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income attributable to NII Holdings | Successor [Member] | (350,661) | |||||
Other comprehensive (loss) income | Successor [Member] | 9,300 | |||||
Share-based compensation activity, Shares | Successor [Member] | 126 | |||||
Share-based compensation activity | Successor [Member] | 4,967 | 4,797 | 170 | |||
Share-based compensation activity | Successor [Member] | 4,797 | |||||
Sale of noncontrolling interest | Successor [Member] | 79,225 | 57,890 | 21,335 | (30,800) | ||
Sale of noncontrolling interest | 48,425 | |||||
Ending Balance, Shares (Successor [Member]) at Dec. 31, 2017 | 100,384 | |||||
Ending Balance, Value (Successor [Member]) at Dec. 31, 2017 | (121,947) | $ 100 | $ 2,139,299 | $ (2,135,770) | $ (46,903) | |
Noncontrolling interest | Successor [Member] | (78,673) | $ (78,673) | ||||
Stockholders' Equity Attributable to Parent | Successor [Member] | $ (43,274) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||
Provision for inventory obsolescence | $ 2,200,000 | $ 0 | $ 1,000,000 | $ 1,700,000 |
Cash flows from financing activities: | ||||
Proceeds from partnership agreement | 0 | |||
Successor [Member] | ||||
Cash flows from operating activities: | ||||
Net (loss) income attributable to NII Holdings | (280,883,000) | (350,661,000) | (1,553,873,000) | |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||
(Income) loss from discontinued operations | (11,608,000) | (1,005,000) | 19,994,000 | |
Amortization of debt (premiums) discounts and financing costs | 181,000 | (3,297,000) | (4,570,000) | |
Depreciation and amortization | 85,364,000 | 37,187,000 | 172,383,000 | |
Provision for losses on accounts receivable | 32,279,000 | 76,518,000 | 77,883,000 | |
Provision for inventory obsolescence | 2,156,000 | 1,033,000 | 1,731,000 | |
Foreign currency transaction losses (gains), net | 99,737,000 | 1,271,000 | (76,615,000) | |
Impairment charges, restructuring charges and losses on disposal of fixed assets | 13,354,000 | 68,529,000 | 1,352,667,000 | |
Deferred income tax (benefit) provision | (2,513,000) | (568,000) | (3,183,000) | |
Share-based compensation expense | 2,923,000 | 6,076,000 | ||
Reorganization items in connection with emergence from Chapter 11 | 0 | 0 | 0 | |
Fresh start adjustments, net | 0 | 4,967,000 | 0 | |
Other, net | (3,829,000) | 2,636,000 | 1,898,000 | |
Changes in assets and liabilities: | ||||
Accounts receivable | (38,756,000) | (30,534,000) | (58,951,000) | |
Prepaid value-added taxes | 9,311,000 | 13,879,000 | 15,894,000 | |
Handset and accessory inventory | 13,940,000 | 4,139,000 | 17,273,000 | |
Prepaid expenses and other | (21,027,000) | (13,358,000) | 8,903,000 | |
Other long-term assets | 20,981,000 | (5,341,000) | (41,447,000) | |
Accrued value-added taxes | (285,000) | 19,211,000 | (7,565,000) | |
Other long-term liabilities | 23,876,000 | 88,460,000 | 41,851,000 | |
Accounts payable, accrued expenses and other | (46,674,000) | (204,000) | (15,554,000) | |
Total operating cash used in continuing operations | (101,473,000) | (87,138,000) | (45,205,000) | |
Total operating cash provided by (used in) discontinued operations | 22,988,000 | 0 | 0 | |
Net cash used in operating activities | (78,485,000) | (87,138,000) | (45,205,000) | |
Cash flows from investing activities: | ||||
Capital expenditures | (76,630,000) | (66,536,000) | (61,291,000) | |
Purchases of investments | (558,883,000) | (629,364,000) | (1,075,119,000) | |
Proceeds from sales of investments | 575,838,000 | 688,714,000 | 1,102,492,000 | |
Purchase of licenses | (4,018,000) | (2,289,000) | (16,936,000) | |
Change in restricted cash and other deposits | (51,235,000) | 27,516,000 | 67,894,000 | |
Other, net | 4,697,000 | 275,000 | (2,243,000) | |
Total investing cash provided by (used in) continuing operations | (110,231,000) | 18,316,000 | 14,797,000 | |
Total investing cash provided by discontinued operations | 109,255,000 | 53,479,000 | 39,653,000 | |
Net cash provided by (used in) investing activities | (976,000) | 71,795,000 | 54,450,000 | |
Cash flows from financing activities: | ||||
Proceeds from partnership agreement | 0 | 50,000,000 | 0 | |
Repayments under equipment financing facility and bank loans | (24,452,000) | (85,949,000) | (90,843,000) | |
Repayments under capital leases and other | (616,000) | (9,522,000) | (2,161,000) | |
Claims paid to senior noteholders | 0 | 0 | 0 | |
Net proceeds from debtor-in-possession loan | 0 | 0 | 0 | |
Repayment of debtor-in-possession loan | 0 | 0 | 0 | |
Other, net | 0 | (3,219,000) | 0 | |
Total financing cash used in continuing operations | (25,068,000) | (48,690,000) | (93,004,000) | |
Total financing cash used in discontinued operations | 0 | 0 | 0 | |
Net cash used in financing activities | (25,068,000) | (48,690,000) | (93,004,000) | |
Effect of exchange rate changes on cash and cash equivalents | 916,000 | 541,000 | (1,045,000) | |
Change in cash and cash equivalents related to discontinued operations | 22,662,000 | 0 | 0 | |
Net (decrease) increase in cash and cash equivalents | (80,951,000) | (63,492,000) | (84,804,000) | |
Cash and cash equivalents, beginning of period | 423,135,000 | 257,380,000 | 342,184,000 | |
Cash and cash equivalents, end of period | 342,184,000 | 423,135,000 | $ 193,888,000 | $ 257,380,000 |
Predecessor [Member] | ||||
Cash flows from operating activities: | ||||
Net (loss) income attributable to NII Holdings | 1,740,515,000 | |||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||
(Income) loss from discontinued operations | (221,114,000) | |||
Amortization of debt (premiums) discounts and financing costs | 18,753,000 | |||
Depreciation and amortization | 153,878,000 | |||
Provision for losses on accounts receivable | 65,396,000 | |||
Provision for inventory obsolescence | 0 | |||
Foreign currency transaction losses (gains), net | 63,948,000 | |||
Impairment charges, restructuring charges and losses on disposal of fixed assets | 31,471,000 | |||
Deferred income tax (benefit) provision | 905,000 | |||
Share-based compensation expense | 5,239,000 | |||
Reorganization items in connection with emergence from Chapter 11 | (1,775,787,000) | |||
Fresh start adjustments, net | (248,709,000) | |||
Other, net | (11,083,000) | |||
Changes in assets and liabilities: | ||||
Accounts receivable | (35,013,000) | |||
Prepaid value-added taxes | 50,564,000 | |||
Handset and accessory inventory | 7,513,000 | |||
Prepaid expenses and other | (26,688,000) | |||
Other long-term assets | 47,253,000 | |||
Accrued value-added taxes | (7,941,000) | |||
Other long-term liabilities | (32,819,000) | |||
Accounts payable, accrued expenses and other | 18,565,000 | |||
Total operating cash used in continuing operations | (155,154,000) | |||
Total operating cash provided by (used in) discontinued operations | (99,603,000) | |||
Net cash used in operating activities | (254,757,000) | |||
Cash flows from investing activities: | ||||
Capital expenditures | (88,485,000) | |||
Purchases of investments | (757,714,000) | |||
Proceeds from sales of investments | 756,546,000 | |||
Purchase of licenses | (5,391,000) | |||
Change in restricted cash and other deposits | (57,074,000) | |||
Other, net | 3,501,000 | |||
Total investing cash provided by (used in) continuing operations | (148,617,000) | |||
Total investing cash provided by discontinued operations | 1,176,438,000 | |||
Net cash provided by (used in) investing activities | 1,027,821,000 | |||
Cash flows from financing activities: | ||||
Repayments under equipment financing facility and bank loans | (124,000) | |||
Repayments under capital leases and other | (1,884,000) | |||
Claims paid to senior noteholders | (745,221,000) | |||
Net proceeds from debtor-in-possession loan | 340,375,000 | |||
Repayment of debtor-in-possession loan | (340,375,000) | |||
Other, net | (4,291,000) | |||
Total financing cash used in continuing operations | (751,520,000) | |||
Total financing cash used in discontinued operations | (26,711,000) | |||
Net cash used in financing activities | (778,231,000) | |||
Effect of exchange rate changes on cash and cash equivalents | (9,152,000) | |||
Change in cash and cash equivalents related to discontinued operations | 103,260,000 | |||
Net (decrease) increase in cash and cash equivalents | 88,941,000 | |||
Cash and cash equivalents, beginning of period | $ 423,135,000 | 334,194,000 | ||
Cash and cash equivalents, end of period | $ 423,135,000 |
Summary of Operations
Summary of Operations | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Operations | Summary of Operations Overview. 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 majority-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 there is a concentration of Brazil’s population and economic activity, including primarily Rio de Janeiro and São Paulo. Nextel Brazil operates a wideband code division multiple access, or WCDMA, network, which has been upgraded to offer long-term evolution, or LTE, services in certain areas. Nextel Brazil's network enables us to offer a wide range of products and services supported by that technology. We are also a party to a roaming agreement that allows us to offer our subscribers nationwide voice and data services outside of our network's footprint. Our target market is 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 network. The services we currently offer include: • mobile telephone voice and wireless data services; • international voice and data roaming services; • application-based radio connection; and • value-added services, including sports, music and entertainment streaming capabilities; online education; and access to national and international WiFi hotspot networks. In September 2017, Nextel Brazil decided to wind down its integrated digital enhanced network, or iDEN, operations with a target to cease all iDEN services in mid-2018. As a result, Nextel Brazil has provided notice of the eventual shutdown to its remaining iDEN subscribers and is currently working to actively migrate the remainder of its legacy iDEN subscriber base to its WCDMA network by proactively promoting attractive service offerings. As of December 31, 2017, 11% of our subscribers were on Nextel Brazil's iDEN network. As of December 31, 2017 , Nextel Brazil had about 3.246 million total subscriber units in commercial service. Removal of 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. Prior to the fourth quarter of 2017, and as previously disclosed, there was substantial doubt about whether our results of operations would provide us with sufficient liquidity to settle our obligations as they became due, principally the amounts due under Nextel Brazil's equipment financing facility and its bank loans. Effective in January 2018, Nextel Brazil entered into an amended and restated equipment financing facility and sixth amendments to its bank loans with Brazilian lenders. Among other changes, these amendments provide for the deferral of substantially all principal payments for the first 48 months from the date of effectiveness, an extension of the loan maturity dates to 98 months from the date of effectiveness, and a holiday for certain financial covenant compliance, including the net debt financial covenant, until June 30, 2020. As of December 31, 2017, our consolidated sources of funding included $210.6 million in cash and short-term investments, $110.0 million in cash held in escrow to secure our indemnification obligations in connection with the sale of Nextel Mexico, and $50.3 million in cash pledged as collateral to secure certain performance bonds relating to our obligations to deploy our WCDMA spectrum in Brazil. In January 2018, we recovered substantially all of the cash securing these performance bonds. As a result of these amendments, our liquidity forecast has substantially improved, and based on our business plan, we believe our current sources of funding described above will provide us with sufficient liquidity to fund our business through 2019. As a result, we believe that there is no longer substantial doubt surrounding our ability to continue as a going concern. Our business plan is based on a number of assumptions, including lower subscriber turnover and a decrease in certain costs compared to 2017. In addition, it assumes that we will recover substantially all of the amount held in escrow. If our actual results of operations differ from our business plan and/or the ultimate amount recovered from our cash held in escrow does not meet our current forecasted amount or is delayed for a significant amount of time, our business could be negatively impacted, and we would need to obtain additional funding and/or significantly reduce our planned capital and operational spending to further preserve our liquidity. Partnership Agreement. On June 5, 2017, we and AINMT Holdings AB, or ice group, an international telecommunications company operating primarily in Norway under the “ice.net” brand, along with certain affiliates of ours and ice group, entered into an investment agreement to partner in the ownership of Nextel Brazil. On July 20, 2017, ice group completed its initial investment of $50.0 million in Nextel Holdings S. à r.l., or Nextel Holdings, a newly formed subsidiary of NII that indirectly owns Nextel Brazil, in exchange for 30% ownership in Nextel Holdings. In connection with the initial investment, ice group received 50.0 million shares of cumulative preferred voting stock in Nextel Holdings, and we received 116.6 million shares of common stock in this entity. The investment agreement also provided ice group with an option, exercisable on or before November 15, 2017, to invest an additional $150.0 million in Nextel Holdings for an additional 30% ownership. ice group did not exercise its option, and on February 27, 2018, we terminated the investment agreement. Since we continue to have a controlling interest in Nextel Brazil, we have consolidated this entity and its subsidiaries. Prior to the closing of the initial investment by ice group, we contributed $116.6 million in cash to Nextel Holdings. In connection with and subsequent to the closing of the initial investment, we contributed an additional $56.8 million to Nextel Holdings, representing all of our freely distributable cash outside of Nextel Brazil, including proceeds released from escrowed funds from the sale of Nextel Mexico received to date, less $50.0 million we retained for our expenses outside of the partnership. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 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. 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, 2017, 87% 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 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 gains or losses. 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. 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, 2017 and 2016, we recorded losses related to inventory obsolescence of $1.0 million and $1.7 million , respectively. In addition, for the six months ended December 31, 2015, we recorded losses related to inventory obsolescence of $2.2 million . 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 December 31, 2017 and 2016 , our asset retirement obligations were included as a component of other long-term liabilities in our consolidated balance sheet and are as follows (in thousands): Balance, January 1, 2016 — 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 New asset retirement obligations 486 Change in assumptions (9,181 ) Accretion 1,677 Settlement of asset retirement obligations (9,375 ) Foreign currency translation and other 112 Balance, December 31, 2017 — Successor Company $ 11,325 Derivative Financial Instruments. We occasionally enter into derivative transactions for hedging or risk management purposes. We record all derivative instruments as either assets or liabilities on our consolidated balance sheet at their fair value. 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. Our intangible assets consist of our telecommunications licenses and our customer relationships. 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 usage in excess of plan limits, 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. 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. We expect our revenue recognition policies to change in the first quarter of 2018 in connection with the implementation of Accounting Standards Update, or ASU, No. 2014-09, “Revenue from Contracts with Customers,” or ASC 606. 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 years ended December 31, 2017 and 2016, we recognized $28.2 million and $46.9 million in revenue-based taxes and other excise taxes, respectively. 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. 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. 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. Advertising Costs. We expense costs related to advertising and other promotional expenditures as incurred. Advertising costs totaled $26.9 million and $30.9 million for the years ended December 31, 2017 and 2016, respectively. 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. 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 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. ice group's investment in Nextel Holdings was made in the form of cumulative preferred shares. Under the terms of this agreement, liquidation proceeds or distributions of Nextel Brazil's future earnings will be allocated first to ice group until its cumulative dividends and original investment have been recouped. Earnings will then be allocated to us to the extent of our investment and pro rata thereafter. ice group is entitled to receive a 2% annual dividend on its cumulative preferred voting stock in Nextel Holdings. ice group's preferred shares are considered participating securities. As presented for the year ended December 31, 2017, our calculation of basic net loss from continuing operations per common share includes $49.6 million in net loss attributable to noncontrolling interest and $0.5 million related to undeclared dividends on ice group's preferred stock. As presented for the year ended December 31, 2017, we did not include 3.4 million stock options and 0.3 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. In addition, 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. 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. New Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Codification, or ASC, No. 2014-09, “Revenue from Contracts with Customers,” or ASC 606, which provides us with a single revenue recognition model for recognizing revenue from contracts with customers and significantly expands the disclosure requirements for revenue arrangements. We implemented ASC 606 on January 1, 2018, using the modified retrospective method for all contracts open at that date. Prior periods will not be retroactively adjusted. In utilizing the modified retrospective method, we are recognizing the cumulative effect of applying the standard at the date of initial application, and we will disclose the results under both the new and old standards for the first year after adoption, beginning in the first quarter of 2018. During the first quarter of 2018, we will record a cumulative adjustment to accumulated deficit that is primarily composed of the following: • a net contract asset related to the portion of our revenues associated with service plans that are sold concurrently with a subsidized handset; and • an asset related to costs incurred to acquire a contract, which primarily relates to the deferral of commission expenses. The future impact of ASC 606 on our revenues primarily relates to contracts with customers where the customer also purchases a subsidized handset from us, which comprises approximately 10% of our new subscribers. A portion of our revenues will be reallocated from service and other revenues to handset and accessory revenues, and these revenues will be recognized at an earlier point in time compared to our current accounting under the existing authoritative guidance. The earlier revenue recognition results in the creation of a contract asset for revenues recognized prior to contractual billing. Given current business trends, we do not expect a material change in total operating revenues. The timing of expense recognition related to certain of our contract acquisition costs, primarily sales commissions, will be impacted as these expenses will be capitalized and amortized under the new standard rather than being expensed as incurred under existing authoritative guidance. We expensed approximately $36.6 million of contract acquisition costs during the year ended December 31, 2017. While we have reached conclusions on the key accounting assessments related to adopting this standard, we are continuing to finalize our assessment of the resulting quantitative impacts. Based on currently available information, we estimate that our opening accumulated deficit balance on January 1, 2018 will decrease by between $20.0 million and $30.0 million , primarily related to the deferral of previously expensed contract acquisition costs. We do not expect to recognize a material net contract asset. 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 have the option to recognize and measure leases either at the beginning of the earliest period presented or at the beginning of the period of adoption using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply. We expect that we will record a material amount of lease liabilities as a result of implementing this standard. We are currently evaluating the adoption methods, as well as the additional effects ASU No. 2016-02 will have on our consolidated financial statements. In November 2016, the FASB issued 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. We implemented this new standard on January 1, 2018. 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 expect that the adoption of this ASU will reclassify changes in restricted cash and other deposits from cash provided by (used in) investing activities to a component of the reconciliation of the beginning of period to end of period change in cash and cash equivalents for all periods presented. |
Emergence From Chapter 11 Proce
Emergence From Chapter 11 Proceedings and Fresh Start Accounting | 12 Months Ended |
Dec. 31, 2017 | |
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. 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 December 31, 2017 December 31, 2016 December 31, 2015 June 30, 2015 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 445 (803 ) 1,467 (80,685 ) Total reorganization items $ 445 $ (803 ) $ 1,467 $ 1,956,874 |
Impairments, Restructuring and
Impairments, Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Impairment, Restructuring and Other Charges | Impairment, Restructuring and Other Charges Long-Lived Asset Impairments. During 2016, we reviewed our Nextel Brazil segment for potential impairment and 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 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. During the first quarter of 2017, we reviewed our Nextel Brazil segment for potential impairment and determined that, as a result of the continued decline in share price, the carrying value of this segment was not fully recoverable. As a result, we recorded non-cash asset impairment charges of $57.9 million in 2017 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 the same approach applied in 2016 and allocated these impairment charges on a pro rata basis between property, plant and equipment and spectrum licenses. During the fourth quarter of 2017, we reviewed our Nextel Brazil segment for potential impairment and determined that its carrying value was recoverable as of December 31, 2017. Other Asset Impairments. During 2017 and 2016, Nextel Brazil recognized $9.3 million and $11.0 million in non-cash asset impairment charges, respectively, 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. Restructuring Charges. In 2017, as a result of a change in the scope of Nextel Brazil's radio access network, or RAN, sharing implementation, Nextel Brazil determined that RAN sharing would no longer be utilized for approximately 800 transmitter and receiver sites. As a result, Nextel Brazil recognized $34.2 million in restructuring costs, of which $17.5 million relates to the present value of future payments to which Nextel Brazil was committed and the remainder relates to the impairment of certain prepayments and other deferred costs attributable to these transmitter and receiver sites. In 2017, Nextel Brazil recognized $70.5 million in restructuring costs, the majority of which related to future lease costs for approximately 1,200 transmitter and receiver sites in low-usage areas in connection with Nextel Brazil's RAN sharing agreement. In addition, Nextel Brazil recognized $6.5 million in severance and other related costs in 2017 related to the separation of approximately 200 employees, which included executive level employees. In an effort to further reduce costs, in the first quarter of 2018, Nextel Brazil entered into arrangements with certain of its tower lessors for the exchange of unused transmitter and receiver sites for other sites needed in its wireless network. As of December 31, 2017, Nextel Brazil had $27.6 million in accrued restructuring charges related to transmitter and receiver sites that could be exchanged, a portion of which may be reversed in the future. In 2016, Nextel Brazil recognized $21.4 million in restructuring costs related to the early termination of leases for approximately 600 transmitter and receiver sites in connection with Nextel Brazil's 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. 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, 2017 2016 2015 2015 Brazil $ 178,467 $ 1,340,610 $ 23,968 $ 28,072 Corporate 1,260 44,201 8,340 8,720 Total impairment, restructuring and other charges $ 179,727 $ 1,384,811 $ 32,308 $ 36,792 In addition, as of December 31, 2017, the total of our accrued restructuring charges was as follows (in thousands): Balance, January 1, 2017 — Successor Company $ 24,103 Restructuring charges 95,363 Cash payments and other (6,315 ) Foreign currency translation adjustment (3,380 ) Balance, December 31, 2017 — Successor Company $ 109,771 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 (in thousands) Cash in escrow $ 110,024 $ 163,435 Cash collateral related to performance bonds 50,340 30,928 Brazil judicial deposits 43,648 — Value-added taxes 27,635 29,829 Prepayment for roaming and RAN sharing agreements 4,586 27,731 Other prepaid assets 14,231 23,020 Other current assets 3,997 5,202 $ 254,461 $ 280,145 Property, Plant and Equipment, Net. The components of our property, plant and equipment, net are as follows: Successor Company December 31, 2017 2016 (in thousands) Land $ 489 $ 675 Building and leasehold improvements 935 1,489 Network equipment, communication towers and network software 82,493 95,298 Software, office equipment, furniture and fixtures and other 22,498 10,952 Less: Accumulated depreciation and amortization (11,461 ) — 94,954 108,414 Construction in progress 22,308 21,061 $ 117,262 $ 129,475 See Note 4 for information regarding the impairment of property, plant and equipment. Intangible Assets, Net. Our intangible assets, net include the following: Successor Company December 31, 2017 December 31, 2016 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 $ 189,920 $ (5,426 ) $ 184,494 $ 226,426 $ — $ 226,426 Customer relationships 4 15,300 (5,100 ) 10,200 17,255 — 17,255 $ 205,220 $ (10,526 ) $ 194,694 $ 243,681 $ — $ 243,681 See Note 4 for 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, 2017 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 2018 $ 14,464 2019 11,064 2020 7,664 2021 7,664 2022 7,664 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. Other Assets. The components of our other long-term assets are as follows: Successor Company December 31, 2017 2016 (in thousands) Brazil judicial deposits $ 110,758 $ 85,123 Prepayment for roaming and RAN sharing agreements 23,747 37,433 Cash collateral related to performance bonds — 56,523 Other 83,699 92,789 $ 218,204 $ 271,868 Accrued Expenses and Other. The components of our accrued expenses and other are as follows: Successor Company December 31, 2017 2016 (in thousands) Contingencies $ 78,006 $ 56,171 Network system and information technology 48,702 50,286 Payroll related items and commissions 32,613 45,187 Non-income based taxes 30,044 28,158 Capital expenditures 10,198 17,514 Other 101,252 74,583 $ 300,815 $ 271,899 Other Long-Term Liabilities. The components of our other long-term liabilities are as follows: Successor Company December 31, 2017 2016 (in thousands) Accrued lease termination and other restructuring charges $ 92,463 $ 31,365 Non-current withholding taxes 67,356 55,078 Other 61,106 57,029 $ 220,925 $ 143,472 Accumulated Other Comprehensive Loss. As of December 31, 2017 and 2016, the tax impact on our accumulated other comprehensive loss was not material. In addition, as of December 31, 2017 and 2016, 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, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 (in thousands) Capital expenditures Cash paid for capital expenditures, including capitalized interest $ 66,536 $ 61,291 $ 76,630 $ 88,485 Change in capital expenditures accrued and unpaid or financed, including accreted interest capitalized (15,433 ) (9,984 ) (4,018 ) (19,282 ) $ 51,103 $ 51,307 $ 72,612 $ 69,203 Interest costs Interest expense, net $ 118,605 $ 113,732 $ 55,563 $ 82,820 Interest capitalized 1,669 283 2,142 2,556 $ 120,274 $ 114,015 $ 57,705 $ 85,376 Cash paid for interest, net of amounts capitalized $ 91,297 $ 105,636 $ 59,914 $ 65,598 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 years ended December 31, 2017 and 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. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
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 were 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. In 2016, we paid $4.0 million , plus interest, out of escrow to settle an indemnification claim. As of December 31, 2017, $73.5 million of the cash held in escrow has been released to us and $110.0 million remains deposited in escrow related to certain potential tax indemnity claims made by New Cingular Wireless. While we are required to continue to indemnify New Cingular Wireless for any valid claims that arise in the future, New Cingular Wireless is not permitted to make any additional claims against the escrow account other than for claims relating to the 2012 tax year totaling not more than $3.8 million . The potential tax indemnity claims submitted by New Cingular Wireless purport to relate to various ongoing tax audits by the Mexican tax authorities for the years 2010 through 2014. Of the total potential tax claims, $12.2 million relates to actual assessments that Nextel Mexico has received. The remaining amounts relate to unassessed matters. New Cingular Wireless' claims include $35.5 million related to the audit of Nextel Mexico’s income tax return for 2010 and $36.9 million related to the audit of Nextel Mexico's income tax return for 2011. The remaining $37.6 million of potential tax claims relates primarily to non-income tax-based audits for the years 2011 through 2014. We recently reached an agreement with the Mexican tax authorities related to the audits of Nextel Mexico's income tax returns for the years 2010 and 2011. Specifically, we agreed to incremental tax liabilities of $36.9 million to settle all open issues related to these tax years. We expect to utilize existing tax credits to settle these liabilities, although it is possible that we may need to settle a portion of these liabilities using cash that is currently held in escrow. We expect to receive a release of some of the $72.4 million in previously escrowed funds related to the 2010 and 2011 income tax audits in the next few months. As of December 31, 2017, we had accrued $1.5 million related to the 2011 income tax audit. We are continuing to work with the Mexican tax authorities to settle the open non-income tax-based audits and accelerate the release of the remaining escrow. There can be no assurance as to the outcome of the foregoing remaining tax audits or indemnity claims. 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 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 and Nextel Peru were as follows (in thousands): Successor Company Predecessor Company Year Ended December 31, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 Operating revenues $ — $ — $ 75,450 $ 599,038 Operating expenses — — (60,863 ) (675,245 ) Other income (expense), net — — 1,159 (49,974 ) Income (loss) before income tax provision — — 15,746 (126,181 ) Income tax provision — — (4,770 ) (8,065 ) — — 10,976 (134,246 ) Income (loss) on disposal of Nextel Argentina, Nextel Mexico and Nextel Peru 1,005 (19,994 ) 632 355,360 Income (loss) from discontinued operations, net of income taxes $ 1,005 $ (19,994 ) $ 11,608 $ 221,114 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The components of our debt are as follows: Successor Company December 31, 2017 2016 (in thousands) Brazil equipment financing $ 242,883 $ 291,597 Brazil bank loans 200,567 242,076 Brazil spectrum financing 122,044 125,684 Brazil capital lease and tower financing obligations 90,213 96,722 Other — 237 Total debt 655,707 756,316 Less: current portion (7,990 ) (540,474 ) $ 647,717 $ 215,842 Amendments to Equipment Financing Facility and Bank Loans. In October 2017, Nextel Brazil entered into an amended and restated equipment financing facility and sixth amendments to its bank loans with Brazilian lenders. In January 2018, we received final approval for the amended and restated equipment financing facility, at which point all of these amendments became effective. We accounted for these amendments as a non-substantial modification of debt and capitalized $6.1 million in expenses related to creditors that will be amortized over the new term of the loans. As a result of the amendments, the material financing terms in all three facilities were aligned. Among other changes, these amendments provide for the deferral of substantially all principal payments for the first 48 months from the date of effectiveness, an extension of the loan maturity dates to 98 months from the date of effectiveness, and a holiday for certain financial covenant compliance, including the net debt financial covenant, until June 30, 2020. In connection with these amendments, Nextel Brazil granted additional security interests to each of its lenders in the form of preferential rights to amounts held in certain of Nextel Brazil's bank accounts and pledged incremental equipment and property to these lenders. In addition, Nextel Brazil will be subject to monthly minimum cash and minimum receivable requirements. Nextel Holdings and certain of its subsidiaries have agreed to make equity contributions to Nextel Brazil over the next 48 months. 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% (an all-in interest rate of 4.46% and 4.22% as of December 31, 2017 and 2016, respectively), and the remainder has a floating interest rate based on LIBOR plus 1.80% (an all-in interest rate of 3.36% and 3.12% as of December 31, 2017 and 2016, respectively). This financing is guaranteed by Nextel Holdings. In addition, the terms of this financing limit Nextel Brazil's ability to pay dividends and other upstream payments. Loans under this agreement have a 48 -month grace period from January 2018 for material repayments, a 50 -month material repayment term that begins in January 2022 and a final maturity of February 2026. Assets purchased using the amounts borrowed under Nextel Brazil's equipment financing facility are pledged as collateral. A portion of Nextel Brazil's accounts receivable is also pledged as collateral under its equipment financing facility. As of December 31, 2017, we had $244.6 million in principal amount outstanding under Nextel Brazil's equipment financing facility. Nextel Brazil does 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. 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 . Prior to the effectiveness of the sixth amendments to these bank loans discussed above, both of these loan agreements had floating interest rates equal to 139.54% of the local Brazilian borrowing rate (an all-in interest rate of 9.63% and 19.05% as of December 31, 2017 and 2016, respectively). As a result of the effectiveness of the loan amendments, both of the loan agreements have floating interest rates equal to 127.00% of the local Brazilian borrowing rate for 48 months from January 2018. After this period elapses, the interest rates will return to 139.54% of the local Brazilian borrowing rate for the remainder of the loan period. Loans under these agreements have a 48 -month grace period from January 2018 for material repayments, a 50 -month material repayment term that begins in January 2022 and a final maturity of January 2026. A portion of Nextel Brazil's accounts receivable is pledged as collateral under these bank loans. As of December 31, 2017, we had $199.1 million in principal amount outstanding under Nextel Brazil's 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 in effect 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 foreign currency exchange rates at the time, 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. 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, 2017 and 2016, we recognized $8.1 million and $7.7 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. For the years subsequent to December 31, 2017 , scheduled annual maturities of all debt outstanding are as follows (in thousands): Year Principal Repayments 2018 $ 6,655 2019 26,687 2020 27,799 2021 27,766 2022 129,311 Thereafter 453,561 Total $ 671,779 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Available-for-Sale Securities. As of December 31, 2017 and 2016 , available-for-sale securities held by Nextel Brazil included $16.7 million and $73.8 million , respectively, in investment funds. These funds invest primarily in Brazilian government bonds, long-term bank certificates of deposit and Brazilian corporate debentures. During the years ended December 31, 2017 and 2016, the six months ended December 31, 2015 and the six months ended June 30, 2015, 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. Debt Instruments. The carrying amounts and estimated fair values of our debt instruments are as follows: Successor Company December 31, 2017 2016 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (in thousands) Brazil equipment financing $ 242,883 $ 237,958 $ 291,597 $ 280,893 Bank loans and other 200,567 144,312 242,313 221,458 Brazil spectrum financing 122,044 128,225 125,684 117,059 $ 565,494 $ 510,495 $ 659,594 $ 619,410 We estimated the fair value of the Brazil bank loans, as well as the fair value of our equipment financing facility 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, bank loans and other and its spectrum financing 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. Nextel Brazil did not have any derivative instruments as of December 31, 2017. As of December 31, 2016, 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. 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, 2017 | |
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. We have not included reasonably assured renewal periods in our calculation of future minimum payments for operating lease obligations shown in the table below. For the year ended December 31, 2017, total rent expense under operating leases was $178.5 million , of which approximately $63.2 million related to rent payments for certain transmitter and receiver sites that Nextel Brazil is not fully utilizing. 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 and the six months ended June 30, 2015, total rent expense under operating leases was $76.4 million and $93.4 million , respectively. For years subsequent to December 31, 2017 , 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 2018 $ 48,354 $ 127,430 $ 175,784 2019 43,026 112,280 155,306 2020 42,890 101,591 144,481 2021 43,016 90,622 133,638 2022 41,298 77,425 118,723 Thereafter 621,495 151,364 772,859 Total minimum lease payments 840,079 660,712 1,500,791 Less: imputed interest (749,866 ) — (749,866 ) Total $ 90,213 $ 660,712 $ 750,925 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 seven years for the RAN sharing agreement, which began in October 2016. In 2017, Nextel Brazil recorded approximately 116 million Brazilian reais, or approximately $36.9 million based on foreign currency exchange rates at the time, of the total 482 million Brazilian reais related to the RAN sharing agreement as a component of restructuring costs as a result of a change in the scope of this arrangement. 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, 2017, we are committed to purchase $131.6 million in total under these arrangements, which includes amounts related to the RAN sharing agreement discussed above, $57.1 million of which we are committed to pay in 2018, $54.2 million of which we are committed to pay in 2019 and 2020 combined and $20.3 million of which we are committed to pay in 2021 and 2022 combined. 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 municipal, state and federal Brazilian authorities asserting deficiencies in payments related primarily to value-added taxes 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. As of December 31, 2017 and 2016, Nextel Brazil also had contingencies related to certain consumer, contract and labor-related matters, some of which are secured by judicial guarantees. Nextel Brazil may in the future be subject to litigation involving tax and other matters requiring judicial deposits of cash that will not be released until the pending matter is resolved. As of December 31, 2017 and 2016 , Nextel Brazil had accrued liabilities of $81.2 million and $76.8 million , respectively, related to contingencies, of which $7.4 million and $1.4 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 $760.0 million as of December 31, 2017 . We continue 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, 2017 | |
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, 2017 , 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 1,183,767 shares of our common stock reserved for future issuance as of December 31, 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
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, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 U.S. $ (41,143 ) $ (53,843 ) $ (1,820 ) $ 1,745,628 Non-U.S. (316,870 ) (1,482,928 ) (295,686 ) (224,218 ) Total $ (358,013 ) $ (1,536,771 ) $ (297,506 ) $ 1,521,410 Successor Company Predecessor Company Year Ended December 31, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 Current: Federal $ — $ — $ — $ — Foreign 5,779 (291 ) 2,502 (1,104 ) Total current income tax benefit (provision) 5,779 (291 ) 2,502 (1,104 ) Deferred: Federal — 2,864 (403 ) (814 ) State, net of Federal tax benefit (provision) — 319 (45 ) (91 ) Foreign 568 — 2,961 — Total deferred income tax benefit (provision) 568 3,183 2,513 (905 ) Total income tax benefit (provision) $ 6,347 $ 2,892 $ 5,015 $ (2,009 ) 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, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 Statutory Federal tax rate 35% 35% 35% 35% Reorganization items — — — (46) Effect of foreign operations — (2) (12) — Effect of statutory Federal tax rate change on deferred tax asset (37) — — — Change in deferred tax asset valuation allowance 16 (32) (20) 9 Effect of permanent differences (12) — — — Other, net — (1) (1) 2 Effective tax rate 2% — 2% — The components of our deferred tax assets and liabilities consist of the following: Successor Company December 31, 2017 2016 (in thousands) Deferred tax assets: Net operating losses and capital loss carryforwards $ 6,509,165 $ 6,363,915 Allowance for doubtful accounts 20,122 17,867 Accrued expenses 53,867 54,263 Accrual for contingent liabilities 27,016 24,669 Intangible assets 121,122 130,983 Property, plant and equipment 143,701 253,882 Leasing related activity 27,519 25,822 Equity compensation 1,151 1,182 Long term debt 55,146 53,159 Inventory reserve 717 1,729 Other 1,004 17,573 6,960,530 6,945,044 Valuation allowance (6,957,569 ) (6,945,044 ) Total deferred tax asset 2,961 — Deferred tax liabilities: Other 2,432 — Total deferred tax liability 2,432 — Net deferred tax asset $ 529 $ — As of December 31, 2017, 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 2037. 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 $898.9 million . As of December 31, 2017 , our Brazilian subsidiaries had $2.1 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, 2017, our holding companies in Luxembourg each had net operating losses ranging from $1.1 billion to $8.7 billion that can be carried forward indefinitely. An immaterial amount of losses generated in 2017 can be carried forward 17 years. Our holding companies in Spain had $964.2 million of net operating loss carryforwards that can be carried forward 18 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, 2017 and 2016 are as follows: Successor Company 2017 2016 (in millions) Brazil $ 1,162.5 $ 1,089.9 U.S. 240.4 367.2 Luxembourg 5,313.7 5,275.9 Spain 241.0 212.0 Total $ 6,957.6 $ 6,945.0 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, 2017 , 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 2018 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 - 2012, 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. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act, or the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to: (1) reducing the U.S. Federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; and (3) requiring a current inclusion in U.S. Federal taxable income of certain earnings of controlled foreign corporations, known as global intangible low-taxed income. We have prepared an analysis of the effect of the Tax Act on our U.S. income taxes and have formed the following conclusions: • In response to the reduction in the U.S. Federal tax rate to 21%, which was effective January 1, 2018, we have recorded our deferred tax asset and corresponding valuation allowance as of December 31, 2017 at the 21% tax rate with no impact to our income tax expense; • We have determined that no tax liability needs to be recorded for the one-time transition tax as our international subsidiaries have negative cumulative foreign earnings; and • We are electing to treat the tax on global intangible low-taxed income as an expense in the period in which we become liable for this tax and are not currently recording a deferred tax liability for this item. In accordance with Staff Accounting Bulletin, or SAB No. 118, “ Income Tax Accounting Implications of the Tax Cuts and Jobs Act, ” our measurement period remains open with respect to the above items in order to allow us to evaluate all possible impacts of evolving guidance to be issued by the Internal Revenue Service and the FASB. |
Employee Stock and Benefit Plan
Employee Stock and Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
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 5,071,457 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. Stock Option Awards For the years ended December 31, 2017 and 2016, the six months ended December 31, 2015 and the six months ended June 30, 2015, we recognized $2.6 million , $2.8 million , $1.0 million and $1.5 million , respectively, in share-based compensation expense related to stock options. The amounts recognized in our consolidated statements of comprehensive (loss) income for tax benefits related to share-based payment arrangements in 2017, 2016 and both periods in 2015 were not material. We include substantially all share-based compensation expense as a component of selling, general and administrative expenses. As of December 31, 2017 , there was $1.1 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 1.50 years . The amount of cash paid for exercises under all share-based payment arrangements was immaterial for 2017, 2016 and both periods in 2015. 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, 2016 3,276,105 $ 10.14 Granted 2,250,000 $ 0.58 Exercised — — Forfeited (2,168,407 ) $ 11.02 Outstanding, December 31, 2017 3,357,698 $ 3.16 8.83 — Exercisable, December 31, 2017 660,677 $ 9.02 7.48 — There were no options exercised during the year ended December 31, 2017. As of December 31, 2017, 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 will 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 were $0.22 and $1.48 for each option granted during the years ended December 31, 2017 and 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, 2017 December 31, 2016 to December 31, 2015 Risk free interest rate 1.53% 1.53% - 1.90% 1.71% - 2.05% Expected stock price volatility 40.87% 40.71% - 40.87% 31.73% - 41.92% Expected term in years 5.16 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 years ended December 31, 2017 and 2016, the six months ended December 31, 2015 and the six months ended June 30, 2015, we recognized $2.0 million , $3.4 million , $1.9 million and $2.3 million , respectively, in share-based compensation expense related to restricted stock and restricted stock units. The amounts recognized in our consolidated statements of comprehensive (loss) income for tax benefits related to share-based payment arrangements for the years ended December 31, 2017 and 2016, the six months ended December 31, 2015 and the six months ended June 30, 2015 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, 2017, 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, 2017: Number of Shares Weighted Average Grant Date Fair Value Per Share Restricted stock awards as of December 31, 2016 522,442 $10.65 Granted — — Vested (185,387 ) $12.06 Forfeited (239,705 ) $7.38 Restricted stock awards as of December 31, 2017 97,350 $15.99 If a participant's employment is terminated without cause prior to the vesting dates, the participant will 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, 2017 , there was $0.8 million in unrecognized compensation cost related to restricted stock. We expect this cost to be recognized over a weighted average period of 0.48 years . For the year ended December 31, 2017, the value of our vested restricted stock awards was immaterial. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 - Successor Company Operating revenues $ 869,661 $ 106 $ 869,767 Segment losses $ (31,071 ) $ (24,174 ) $ (55,245 ) Less: Impairment, restructuring and other charges (179,727 ) Depreciation and amortization (37,187 ) Foreign currency transaction losses, net (1,271 ) Interest expense and other, net (85,028 ) Loss from continuing operations before reorganization items and income tax provision $ (358,458 ) Capital expenditures $ 51,103 $ — $ 51,103 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 December 31, 2017 - Successor Company Identifiable assets $ 957,495 $ 147,603 $ 1,105,098 December 31, 2016 - Successor Company Identifiable assets $ 1,000,098 $ 418,411 $ 1,418,509 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (Unaudited) Successor Company First Second Third Fourth (in thousands, except per share amounts) 2017 Operating revenues $ 250,955 $ 225,134 $ 204,808 $ 188,870 Operating loss (79,849 ) (68,931 ) (83,372 ) (40,007 ) Net loss from continuing operations (92,675 ) (87,467 ) (94,428 ) (77,096 ) Net (loss) income from discontinued operations (38 ) 2,697 (92 ) (1,562 ) Net loss from continuing operations, per common share, basic $ (0.92 ) $ (0.87 ) $ (0.94 ) $ (0.77 ) Net income (loss) from discontinued operations, per common share, basic $ — $ 0.02 $ — $ (0.02 ) Net loss from continuing operations, per common share, diluted $ (0.92 ) $ (0.87 ) $ (0.94 ) $ (0.77 ) Net income (loss) from discontinued operations, per common share, diluted $ — $ 0.02 $ — $ (0.02 ) 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 ) 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 these impairment charges. 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. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2017 | |
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 $ 28,167 $ 54,101 Short-term intercompany receivables — 1,242 Prepaid expenses and other 104 — Total current assets 28,271 55,343 Long-term intercompany receivables 15 3,146 Other assets 2 112,503 Total assets $ 28,288 $ 170,992 LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY Current liabilities Short-term intercompany payables $ 1,439 $ 4,570 Total current liabilities 1,439 4,570 Other long-term liabilities 148,796 400 Total liabilities 150,235 4,970 Total (deficit) equity (121,947 ) 166,022 Total liabilities and stockholders’ (deficit) equity $ 28,288 $ 170,992 NII HOLDINGS, INC. CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (PARENT COMPANY ONLY) (in thousands) Successor Company Predecessor Company Year Ended December 31, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 Operating revenues $ — $ — $ — $ — Operating expenses Selling, general and administrative — — — 429 Impairment, restructuring and other charges — 36,839 — — Depreciation and amortization — 1,116 744 — — 37,955 744 429 Operating loss — (37,955 ) (744 ) (429 ) Other (expense) income Interest expense, net — — — (119 ) Intercompany interest expense — (117,078 ) (118,365 ) (159,117 ) Interest income — — — 37 Intercompany interest income 231 197 97 125 Equity in (loss) income of affiliates (300,107 ) (1,401,998 ) (167,324 ) 1,793,151 Other (expense) income, net (1,138 ) (206 ) (3 ) 995 (301,014 ) (1,519,085 ) (285,595 ) 1,635,072 (Loss) income before reorganization items and income tax benefit (301,014 ) (1,557,040 ) (286,339 ) 1,634,643 Reorganization items — — (373 ) 68,355 Income tax benefit (provision) — 3,183 (448 ) (1,002 ) Net (loss) income from continuing operations (301,014 ) (1,553,857 ) (287,160 ) 1,701,996 (Loss) income from discontinued operations, net of income taxes — (16 ) 6,277 38,519 Net (loss) income $ (301,014 ) $ (1,553,873 ) $ (280,883 ) $ 1,740,515 Comprehensive (loss) income, net of income taxes Foreign currency translation adjustment $ 7,696 $ 169,785 $ (248,781 ) $ (205,899 ) Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Peru — — (1,672 ) 421,953 Other — — 4,734 2,956 Other comprehensive income (loss) 7,696 169,785 (245,719 ) 219,010 Net (loss) income (301,014 ) (1,553,873 ) (280,883 ) 1,740,515 Total comprehensive (loss) income $ (293,318 ) $ (1,384,088 ) $ (526,602 ) $ 1,959,525 NII HOLDINGS, INC. CONDENSED STATEMENTS OF CASH FLOWS (PARENT COMPANY ONLY) (in thousands) Successor Company Predecessor Company Year Ended December 31, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 Cash flows from operating activities: Net (loss) income $ (301,014 ) $ (1,553,873 ) $ (280,883 ) $ 1,740,515 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities 284,932 1,554,075 280,910 (1,735,521 ) Net cash (used in) provided by operating activities (16,082 ) 202 27 4,994 Cash flows from investing activities: Investments in subsidiaries (10,043 ) (36,356 ) (29,690 ) (61,405 ) Return of investments in subsidiaries 162 34,260 35,315 23 Other, net — (16 ) — — Net cash (used in) provided by investing activities (9,881 ) (2,112 ) 5,625 (61,382 ) Cash flows from financing activities: Other, net 29 — — — Net cash provided by financing activities 29 — — — Net (decrease) increase in cash and cash equivalents (25,934 ) (1,910 ) 5,652 (56,388 ) Cash and cash equivalents, beginning of period 54,101 56,011 50,359 106,747 Cash and cash equivalents, end of period $ 28,167 $ 54,101 $ 56,011 $ 50,359 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 year ended December 31, 2017, the six months ended December 31, 2015 or the six months ended June 30, 2015. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 — Successor Company Allowance for doubtful accounts $ 54,221 $ 76,518 $ (88,728 ) $ 42,011 Valuation allowance for deferred tax assets $ 6,945,044 $ 28,637 $ (16,112 ) $ 6,957,569 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 _______________________________________ (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, 2017 | |
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 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. 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, 2017, 87% 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 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 gains or losses. 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. 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. |
Derivative Financial Instruments | Derivative Financial Instruments. We occasionally enter into derivative transactions for hedging or risk management purposes. We record all derivative instruments as either assets or liabilities on our consolidated balance sheet at their fair value. 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. Our intangible assets consist of our telecommunications licenses and our customer relationships. 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 usage in excess of plan limits, 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. 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. We expect our revenue recognition policies to change in the first quarter of 2018 in connection with the implementation of Accounting Standards Update, or ASU, No. 2014-09, “Revenue from Contracts with Customers,” or ASC 606. |
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. |
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. |
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 vesting period of the award. |
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. |
New Accounting Pronouncements | New Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Codification, or ASC, No. 2014-09, “Revenue from Contracts with Customers,” or ASC 606, which provides us with a single revenue recognition model for recognizing revenue from contracts with customers and significantly expands the disclosure requirements for revenue arrangements. We implemented ASC 606 on January 1, 2018, using the modified retrospective method for all contracts open at that date. Prior periods will not be retroactively adjusted. In utilizing the modified retrospective method, we are recognizing the cumulative effect of applying the standard at the date of initial application, and we will disclose the results under both the new and old standards for the first year after adoption, beginning in the first quarter of 2018. During the first quarter of 2018, we will record a cumulative adjustment to accumulated deficit that is primarily composed of the following: • a net contract asset related to the portion of our revenues associated with service plans that are sold concurrently with a subsidized handset; and • an asset related to costs incurred to acquire a contract, which primarily relates to the deferral of commission expenses. The future impact of ASC 606 on our revenues primarily relates to contracts with customers where the customer also purchases a subsidized handset from us, which comprises approximately 10% of our new subscribers. A portion of our revenues will be reallocated from service and other revenues to handset and accessory revenues, and these revenues will be recognized at an earlier point in time compared to our current accounting under the existing authoritative guidance. The earlier revenue recognition results in the creation of a contract asset for revenues recognized prior to contractual billing. Given current business trends, we do not expect a material change in total operating revenues. The timing of expense recognition related to certain of our contract acquisition costs, primarily sales commissions, will be impacted as these expenses will be capitalized and amortized under the new standard rather than being expensed as incurred under existing authoritative guidance. We expensed approximately $36.6 million of contract acquisition costs during the year ended December 31, 2017. While we have reached conclusions on the key accounting assessments related to adopting this standard, we are continuing to finalize our assessment of the resulting quantitative impacts. Based on currently available information, we estimate that our opening accumulated deficit balance on January 1, 2018 will decrease by between $20.0 million and $30.0 million , primarily related to the deferral of previously expensed contract acquisition costs. We do not expect to recognize a material net contract asset. 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 have the option to recognize and measure leases either at the beginning of the earliest period presented or at the beginning of the period of adoption using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply. We expect that we will record a material amount of lease liabilities as a result of implementing this standard. We are currently evaluating the adoption methods, as well as the additional effects ASU No. 2016-02 will have on our consolidated financial statements. In November 2016, the FASB issued 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. We implemented this new standard on January 1, 2018. 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 expect that the adoption of this ASU will reclassify changes in restricted cash and other deposits from cash provided by (used in) investing activities to a component of the reconciliation of the beginning of period to end of period change in cash and cash equivalents for all periods presented. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Asset Retirement Obligations | As of December 31, 2017 and 2016 , our asset retirement obligations were included as a component of other long-term liabilities in our consolidated balance sheet and are as follows (in thousands): Balance, January 1, 2016 — 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 New asset retirement obligations 486 Change in assumptions (9,181 ) Accretion 1,677 Settlement of asset retirement obligations (9,375 ) Foreign currency translation and other 112 Balance, December 31, 2017 — Successor Company $ 11,325 |
Emergence From Chapter 11 Pro25
Emergence From Chapter 11 Proceedings and Fresh Start Accounting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reorganizations [Abstract] | |
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 December 31, 2017 December 31, 2016 December 31, 2015 June 30, 2015 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 445 (803 ) 1,467 (80,685 ) Total reorganization items $ 445 $ (803 ) $ 1,467 $ 1,956,874 |
Impairments, Restructuring an26
Impairments, Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 2015 Brazil $ 178,467 $ 1,340,610 $ 23,968 $ 28,072 Corporate 1,260 44,201 8,340 8,720 Total impairment, restructuring and other charges $ 179,727 $ 1,384,811 $ 32,308 $ 36,792 |
Restructuring and Related Costs | In addition, as of December 31, 2017, the total of our accrued restructuring charges was as follows (in thousands): Balance, January 1, 2017 — Successor Company $ 24,103 Restructuring charges 95,363 Cash payments and other (6,315 ) Foreign currency translation adjustment (3,380 ) Balance, December 31, 2017 — Successor Company $ 109,771 |
Supplemental Financial Statem27
Supplemental Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 (in thousands) Cash in escrow $ 110,024 $ 163,435 Cash collateral related to performance bonds 50,340 30,928 Brazil judicial deposits 43,648 — Value-added taxes 27,635 29,829 Prepayment for roaming and RAN sharing agreements 4,586 27,731 Other prepaid assets 14,231 23,020 Other current assets 3,997 5,202 $ 254,461 $ 280,145 |
Components of Property, Plant and Equipment | The components of our property, plant and equipment, net are as follows: Successor Company December 31, 2017 2016 (in thousands) Land $ 489 $ 675 Building and leasehold improvements 935 1,489 Network equipment, communication towers and network software 82,493 95,298 Software, office equipment, furniture and fixtures and other 22,498 10,952 Less: Accumulated depreciation and amortization (11,461 ) — 94,954 108,414 Construction in progress 22,308 21,061 $ 117,262 $ 129,475 |
Schedule of Finite-Lived Intangible Assets | Our intangible assets, net include the following: Successor Company December 31, 2017 December 31, 2016 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 $ 189,920 $ (5,426 ) $ 184,494 $ 226,426 $ — $ 226,426 Customer relationships 4 15,300 (5,100 ) 10,200 17,255 — 17,255 $ 205,220 $ (10,526 ) $ 194,694 $ 243,681 $ — $ 243,681 |
Schedule Of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the carrying amount of our intangible assets as of December 31, 2017 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 2018 $ 14,464 2019 11,064 2020 7,664 2021 7,664 2022 7,664 |
Schedule of Other Assets | The components of our other long-term assets are as follows: Successor Company December 31, 2017 2016 (in thousands) Brazil judicial deposits $ 110,758 $ 85,123 Prepayment for roaming and RAN sharing agreements 23,747 37,433 Cash collateral related to performance bonds — 56,523 Other 83,699 92,789 $ 218,204 $ 271,868 |
Components of Accrued Expenses and Other | The components of our accrued expenses and other are as follows: Successor Company December 31, 2017 2016 (in thousands) Contingencies $ 78,006 $ 56,171 Network system and information technology 48,702 50,286 Payroll related items and commissions 32,613 45,187 Non-income based taxes 30,044 28,158 Capital expenditures 10,198 17,514 Other 101,252 74,583 $ 300,815 $ 271,899 |
Schedule of Restricted Cash and Cash Equivalents | The components of our other long-term liabilities are as follows: Successor Company December 31, 2017 2016 (in thousands) Accrued lease termination and other restructuring charges $ 92,463 $ 31,365 Non-current withholding taxes 67,356 55,078 Other 61,106 57,029 $ 220,925 $ 143,472 |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Information. Successor Company Predecessor Company Year Ended December 31, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 (in thousands) Capital expenditures Cash paid for capital expenditures, including capitalized interest $ 66,536 $ 61,291 $ 76,630 $ 88,485 Change in capital expenditures accrued and unpaid or financed, including accreted interest capitalized (15,433 ) (9,984 ) (4,018 ) (19,282 ) $ 51,103 $ 51,307 $ 72,612 $ 69,203 Interest costs Interest expense, net $ 118,605 $ 113,732 $ 55,563 $ 82,820 Interest capitalized 1,669 283 2,142 2,556 $ 120,274 $ 114,015 $ 57,705 $ 85,376 Cash paid for interest, net of amounts capitalized $ 91,297 $ 105,636 $ 59,914 $ 65,598 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 and Nextel Peru were as follows (in thousands): Successor Company Predecessor Company Year Ended December 31, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 Operating revenues $ — $ — $ 75,450 $ 599,038 Operating expenses — — (60,863 ) (675,245 ) Other income (expense), net — — 1,159 (49,974 ) Income (loss) before income tax provision — — 15,746 (126,181 ) Income tax provision — — (4,770 ) (8,065 ) — — 10,976 (134,246 ) Income (loss) on disposal of Nextel Argentina, Nextel Mexico and Nextel Peru 1,005 (19,994 ) 632 355,360 Income (loss) from discontinued operations, net of income taxes $ 1,005 $ (19,994 ) $ 11,608 $ 221,114 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | The components of our debt are as follows: Successor Company December 31, 2017 2016 (in thousands) Brazil equipment financing $ 242,883 $ 291,597 Brazil bank loans 200,567 242,076 Brazil spectrum financing 122,044 125,684 Brazil capital lease and tower financing obligations 90,213 96,722 Other — 237 Total debt 655,707 756,316 Less: current portion (7,990 ) (540,474 ) $ 647,717 $ 215,842 |
Annual Maturities of Long Term Debt Outstanding | For the years subsequent to December 31, 2017 , scheduled annual maturities of all debt outstanding are as follows (in thousands): Year Principal Repayments 2018 $ 6,655 2019 26,687 2020 27,799 2021 27,766 2022 129,311 Thereafter 453,561 Total $ 671,779 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Debt | The carrying amounts and estimated fair values of our debt instruments are as follows: Successor Company December 31, 2017 2016 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (in thousands) Brazil equipment financing $ 242,883 $ 237,958 $ 291,597 $ 280,893 Bank loans and other 200,567 144,312 242,313 221,458 Brazil spectrum financing 122,044 128,225 125,684 117,059 $ 565,494 $ 510,495 $ 659,594 $ 619,410 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments for Capital and Operating Lease Obligations | For years subsequent to December 31, 2017 , 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 2018 $ 48,354 $ 127,430 $ 175,784 2019 43,026 112,280 155,306 2020 42,890 101,591 144,481 2021 43,016 90,622 133,638 2022 41,298 77,425 118,723 Thereafter 621,495 151,364 772,859 Total minimum lease payments 840,079 660,712 1,500,791 Less: imputed interest (749,866 ) — (749,866 ) Total $ 90,213 $ 660,712 $ 750,925 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 U.S. $ (41,143 ) $ (53,843 ) $ (1,820 ) $ 1,745,628 Non-U.S. (316,870 ) (1,482,928 ) (295,686 ) (224,218 ) Total $ (358,013 ) $ (1,536,771 ) $ (297,506 ) $ 1,521,410 |
Income Tax Provision | Successor Company Predecessor Company Year Ended December 31, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 Current: Federal $ — $ — $ — $ — Foreign 5,779 (291 ) 2,502 (1,104 ) Total current income tax benefit (provision) 5,779 (291 ) 2,502 (1,104 ) Deferred: Federal — 2,864 (403 ) (814 ) State, net of Federal tax benefit (provision) — 319 (45 ) (91 ) Foreign 568 — 2,961 — Total deferred income tax benefit (provision) 568 3,183 2,513 (905 ) Total income tax benefit (provision) $ 6,347 $ 2,892 $ 5,015 $ (2,009 ) |
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, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 Statutory Federal tax rate 35% 35% 35% 35% Reorganization items — — — (46) Effect of foreign operations — (2) (12) — Effect of statutory Federal tax rate change on deferred tax asset (37) — — — Change in deferred tax asset valuation allowance 16 (32) (20) 9 Effect of permanent differences (12) — — — Other, net — (1) (1) 2 Effective tax rate 2% — 2% — |
Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities consist of the following: Successor Company December 31, 2017 2016 (in thousands) Deferred tax assets: Net operating losses and capital loss carryforwards $ 6,509,165 $ 6,363,915 Allowance for doubtful accounts 20,122 17,867 Accrued expenses 53,867 54,263 Accrual for contingent liabilities 27,016 24,669 Intangible assets 121,122 130,983 Property, plant and equipment 143,701 253,882 Leasing related activity 27,519 25,822 Equity compensation 1,151 1,182 Long term debt 55,146 53,159 Inventory reserve 717 1,729 Other 1,004 17,573 6,960,530 6,945,044 Valuation allowance (6,957,569 ) (6,945,044 ) Total deferred tax asset 2,961 — Deferred tax liabilities: Other 2,432 — Total deferred tax liability 2,432 — Net deferred tax asset $ 529 $ — |
Deferred Tax Asset Valuation Allowance | The deferred tax asset valuation allowances that our subsidiaries and holding companies had as of December 31, 2017 and 2016 are as follows: Successor Company 2017 2016 (in millions) Brazil $ 1,162.5 $ 1,089.9 U.S. 240.4 367.2 Luxembourg 5,313.7 5,275.9 Spain 241.0 212.0 Total $ 6,957.6 $ 6,945.0 |
Employee Stock and Benefit Pl33
Employee Stock and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2016 3,276,105 $ 10.14 Granted 2,250,000 $ 0.58 Exercised — — Forfeited (2,168,407 ) $ 11.02 Outstanding, December 31, 2017 3,357,698 $ 3.16 8.83 — Exercisable, December 31, 2017 660,677 $ 9.02 7.48 — |
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 were $0.22 and $1.48 for each option granted during the years ended December 31, 2017 and 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, 2017 December 31, 2016 to December 31, 2015 Risk free interest rate 1.53% 1.53% - 1.90% 1.71% - 2.05% Expected stock price volatility 40.87% 40.71% - 40.87% 31.73% - 41.92% Expected term in years 5.16 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, 2017: Number of Shares Weighted Average Grant Date Fair Value Per Share Restricted stock awards as of December 31, 2016 522,442 $10.65 Granted — — Vested (185,387 ) $12.06 Forfeited (239,705 ) $7.38 Restricted stock awards as of December 31, 2017 97,350 $15.99 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Brazil Corporate and Eliminations Consolidated (in thousands) Year Ended December 31, 2017 - Successor Company Operating revenues $ 869,661 $ 106 $ 869,767 Segment losses $ (31,071 ) $ (24,174 ) $ (55,245 ) Less: Impairment, restructuring and other charges (179,727 ) Depreciation and amortization (37,187 ) Foreign currency transaction losses, net (1,271 ) Interest expense and other, net (85,028 ) Loss from continuing operations before reorganization items and income tax provision $ (358,458 ) Capital expenditures $ 51,103 $ — $ 51,103 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 December 31, 2017 - Successor Company Identifiable assets $ 957,495 $ 147,603 $ 1,105,098 December 31, 2016 - Successor Company Identifiable assets $ 1,000,098 $ 418,411 $ 1,418,509 |
Quarterly Financial Data (Una35
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Successor Company First Second Third Fourth (in thousands, except per share amounts) 2017 Operating revenues $ 250,955 $ 225,134 $ 204,808 $ 188,870 Operating loss (79,849 ) (68,931 ) (83,372 ) (40,007 ) Net loss from continuing operations (92,675 ) (87,467 ) (94,428 ) (77,096 ) Net (loss) income from discontinued operations (38 ) 2,697 (92 ) (1,562 ) Net loss from continuing operations, per common share, basic $ (0.92 ) $ (0.87 ) $ (0.94 ) $ (0.77 ) Net income (loss) from discontinued operations, per common share, basic $ — $ 0.02 $ — $ (0.02 ) Net loss from continuing operations, per common share, diluted $ (0.92 ) $ (0.87 ) $ (0.94 ) $ (0.77 ) Net income (loss) from discontinued operations, per common share, diluted $ — $ 0.02 $ — $ (0.02 ) 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 ) |
Schedule I - Condensed Financ36
Schedule I - Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 $ 28,167 $ 54,101 Short-term intercompany receivables — 1,242 Prepaid expenses and other 104 — Total current assets 28,271 55,343 Long-term intercompany receivables 15 3,146 Other assets 2 112,503 Total assets $ 28,288 $ 170,992 LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY Current liabilities Short-term intercompany payables $ 1,439 $ 4,570 Total current liabilities 1,439 4,570 Other long-term liabilities 148,796 400 Total liabilities 150,235 4,970 Total (deficit) equity (121,947 ) 166,022 Total liabilities and stockholders’ (deficit) equity $ 28,288 $ 170,992 |
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, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 Operating revenues $ — $ — $ — $ — Operating expenses Selling, general and administrative — — — 429 Impairment, restructuring and other charges — 36,839 — — Depreciation and amortization — 1,116 744 — — 37,955 744 429 Operating loss — (37,955 ) (744 ) (429 ) Other (expense) income Interest expense, net — — — (119 ) Intercompany interest expense — (117,078 ) (118,365 ) (159,117 ) Interest income — — — 37 Intercompany interest income 231 197 97 125 Equity in (loss) income of affiliates (300,107 ) (1,401,998 ) (167,324 ) 1,793,151 Other (expense) income, net (1,138 ) (206 ) (3 ) 995 (301,014 ) (1,519,085 ) (285,595 ) 1,635,072 (Loss) income before reorganization items and income tax benefit (301,014 ) (1,557,040 ) (286,339 ) 1,634,643 Reorganization items — — (373 ) 68,355 Income tax benefit (provision) — 3,183 (448 ) (1,002 ) Net (loss) income from continuing operations (301,014 ) (1,553,857 ) (287,160 ) 1,701,996 (Loss) income from discontinued operations, net of income taxes — (16 ) 6,277 38,519 Net (loss) income $ (301,014 ) $ (1,553,873 ) $ (280,883 ) $ 1,740,515 Comprehensive (loss) income, net of income taxes Foreign currency translation adjustment $ 7,696 $ 169,785 $ (248,781 ) $ (205,899 ) Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Peru — — (1,672 ) 421,953 Other — — 4,734 2,956 Other comprehensive income (loss) 7,696 169,785 (245,719 ) 219,010 Net (loss) income (301,014 ) (1,553,873 ) (280,883 ) 1,740,515 Total comprehensive (loss) income $ (293,318 ) $ (1,384,088 ) $ (526,602 ) $ 1,959,525 |
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, Year Ended December 31, Six Months Ended December 31, Six Months Ended June 30, 2017 2016 2015 2015 Cash flows from operating activities: Net (loss) income $ (301,014 ) $ (1,553,873 ) $ (280,883 ) $ 1,740,515 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities 284,932 1,554,075 280,910 (1,735,521 ) Net cash (used in) provided by operating activities (16,082 ) 202 27 4,994 Cash flows from investing activities: Investments in subsidiaries (10,043 ) (36,356 ) (29,690 ) (61,405 ) Return of investments in subsidiaries 162 34,260 35,315 23 Other, net — (16 ) — — Net cash (used in) provided by investing activities (9,881 ) (2,112 ) 5,625 (61,382 ) Cash flows from financing activities: Other, net 29 — — — Net cash provided by financing activities 29 — — — Net (decrease) increase in cash and cash equivalents (25,934 ) (1,910 ) 5,652 (56,388 ) Cash and cash equivalents, beginning of period 54,101 56,011 50,359 106,747 Cash and cash equivalents, end of period $ 28,167 $ 54,101 $ 56,011 $ 50,359 |
Schedule II - Valuation and Q37
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 — Successor Company Allowance for doubtful accounts $ 54,221 $ 76,518 $ (88,728 ) $ 42,011 Valuation allowance for deferred tax assets $ 6,945,044 $ 28,637 $ (16,112 ) $ 6,957,569 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 _______________________________________ (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 $50.6 million reduction to allowance for doubtful accounts resulting from the application of fresh start accounting. |
Summary of Operations (Details)
Summary of Operations (Details) - Nextel Brazil [Member] subscriber in Thousands | 12 Months Ended |
Dec. 31, 2017subscriber | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of subscriber units | 3,246 |
Geographic Concentration Risk [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Concentration risk, percentage | 11.00% |
Summary of Operations Removal o
Summary of Operations Removal of Going Concern (Details) - USD ($) $ in Millions | 1 Months Ended | |
Oct. 31, 2017 | Dec. 31, 2017 | |
Cash and short-term investments | $ 210.6 | |
Cash held in escrow | 110 | |
Cash pledged as collateral | $ 50.3 | |
Anticipated proceeds from release of escrow | $ 72.4 | |
Brazil [Member] | ||
Standstill period | 48 months | |
Borrowing period of loan | 98 months |
Summary of Operations Partnerhi
Summary of Operations Partnerhisp Agreement (Details) - USD ($) shares in Millions, $ in Millions | Jul. 21, 2017 | Jul. 20, 2017 | Jun. 05, 2017 |
AINMT Holdings AB [Member] | Scenario, Plan [Member] | |||
Additional percentage of ownership received after transaction | 30.00% | ||
Nextel Holdings [Member] | |||
Consideration transfered sale of stock | $ 50 | ||
Shares issued in transaction (in shares) | 116.6 | ||
Nextel Holdings [Member] | Scenario, Plan [Member] | |||
Additional consideration transfered in sale of stock | $ 150 | ||
Nextel Holdings [Member] | |||
Payments to acquired interest in subsidiary and affiliates | $ 56.8 | $ 116.6 | |
Nextel Holdings [Member] | AINMT Holdings AB [Member] | |||
Percent ownership after sale of stock | 30.00% | ||
AINMT Holdings AB [Member] | Nextel Holdings [Member] | |||
Shares issued in transaction (in shares) | 50 | ||
Nextel Mexico [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||
Proceeds from divestiture of business, portion retained for expenses | $ 50 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details) - USD ($) shares in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Contract Acquisition Costs | $ 36,600,000 | |||
Provision for inventory obsolescence | $ 2,200,000 | $ 0 | 1,000,000 | $ 1,700,000 |
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 | 28,200,000 | $ 46,900,000 |
Advertising expense | $ 21,600,000 | $ 28,700,000 | 26,900,000 | $ 30,900,000 |
Net loss attributable to noncontrolling interest | 49,600,000 | |||
Undeclared dividends | $ 500,000 | |||
Stock Options [Member] | ||||
Antidilutive securities excluded from computation of net (loss) income per share (in shares) | 2.2 | 4.8 | 3.4 | 3.5 |
Restricted Stock [Member] | ||||
Antidilutive securities excluded from computation of net (loss) income per share (in shares) | 0.3 | 0.8 | ||
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) | 87.00% | |||
Pro Forma [Member] | Accounting Standards Update 2014-09 [Member] | Difference Between Revenue Guidance In Effect Before And After Topic 606 [Member] | Minimum [Member] | ||||
Accumulated deficit | $ 20,000,000 | |||
Pro Forma [Member] | Accounting Standards Update 2014-09 [Member] | Difference Between Revenue Guidance In Effect Before And After Topic 606 [Member] | Maximum [Member] | ||||
Accumulated deficit | $ 30,000,000 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Voting rights of shareholders prior to emergence (as percent) | 50.00% | |
Successor [Member] | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation, beginning balance | $ 27,606 | $ 19,642 |
New asset retirement obligations | 486 | 198 |
Change in assumptions | (9,181) | (1,619) |
Accretion | 1,677 | 2,552 |
Settlement of asset retirement obligations | (9,375) | (441) |
Foreign currency translation and other | 112 | 7,274 |
Asset retirement obligation, ending balance | $ 11,325 | $ 27,606 |
Emergence From Chapter 11 Pro43
Emergence From Chapter 11 Proceedings and Fresh Start Accounting (Details) $ / shares in Units, $ in Millions | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / sharesshares | Jun. 26, 2015USD ($)$ / sharesshares | Sep. 16, 2014subsidiary | Sep. 15, 2014subsidiary |
Number of subsidiaries that filed voluntary petitions under Chapter 11 | subsidiary | 5 | 8 | |||
Voting rights of shareholders prior to emergence (as percent) | 50.00% | ||||
Senior Notes [Member] | 7.875% Senior Notes Due 2019 [Member] | |||||
Senior notes | $ 700 | ||||
Notes interest rate (as percent) | 7.875% | ||||
Senior Notes [Member] | 11.375% Senior Notes Due 2019 [Member] | |||||
Senior notes | $ 900 | ||||
Notes interest rate (as percent) | 11.375% | ||||
Senior Notes [Member] | 7.625% Senior Notes Due 2021 [Member] | |||||
Senior notes | $ 1,450 | ||||
Notes interest rate (as percent) | 7.625% | ||||
Senior Notes [Member] | 8.875% Senior Notes Due 2019 [Member] | |||||
Senior notes | $ 500 | ||||
Notes interest rate (as percent) | 8.875% | ||||
Senior Notes [Member] | 10.0% Senior Notes Due 2016 [Member] | |||||
Senior notes | $ 800 | ||||
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 | 100,258,221 | 100,001,227 | 99,999,992 | ||
Price per share | $ / shares | $ 20.68 | ||||
Total claims paid | $ 776.3 | ||||
Preferred stock, shares authorized (in shares) | shares | 10,000,000 | 10,000,000 | 10,000,000 |
Emergence From Chapter 11 Pro44
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, 2017 | Dec. 31, 2016 | |
Successor [Member] | ||||
Gain on settlement of liabilities subject to compromise | $ 0 | $ 0 | $ 0 | |
Net gain on fresh start fair value adjustments | 0 | 0 | 0 | |
Reorganization-related professional fees and other costs | 1,467 | 445 | (803) | |
Total reorganization items | $ 1,467 | $ 445 | $ (803) | |
Predecessor [Member] | ||||
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 | (80,685) | |||
Total reorganization items | $ 1,956,874 |
Impairments, Restructuring an45
Impairments, Restructuring and Other Charges (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017USD ($)site | Dec. 31, 2016USD ($)site | Dec. 31, 2015employee | Dec. 31, 2015USD ($)employee | Jun. 30, 2015USD ($)employee | Dec. 31, 2017USD ($)site | Dec. 31, 2016USD ($)site | |
Impairments and Restructuring Charges [Line Items] | |||||||
Restructuring charges | $ 9,900,000 | ||||||
Successor [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Impairment, restructuring and other charges | 32,308,000 | $ 179,727,000 | $ 1,384,811,000 | ||||
Restructuring charges | 95,363,000 | ||||||
Predecessor [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Impairment, restructuring and other charges | $ 36,792,000 | ||||||
Nextel Brazil [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Asset impairment charges | 57,900,000 | 1,340,000,000 | |||||
Impairment of long-lived assets | 36,800,000 | ||||||
Restructuring charges | 27,600,000 | $ 10,800,000 | |||||
Nextel Brazil [Member] | Contract Termination [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Restructuring charges | $ 21,400,000 | $ 70,500,000 | |||||
Number of transmitter and receiver sites expected to be terminated | site | 600 | 1,200 | 600 | ||||
Nextel Brazil [Member] | Employee Severance [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Restructuring charges | $ 6,500,000 | ||||||
Number of employees severed | 0 | ||||||
Brazil [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Asset impairment charges | 12,600,000 | 31,100,000 | $ 9,300,000 | $ 11,000,000 | |||
Restructuring charges | $ 8,400,000 | ||||||
Number of employees severed | employee | 700 | ||||||
Brazil [Member] | Successor [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Impairment, restructuring and other charges | $ 23,968,000 | 178,467,000 | 1,340,610,000 | ||||
Brazil [Member] | Predecessor [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Impairment, restructuring and other charges | 28,072,000 | ||||||
Corporate [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Restructuring charges | $ 5,400,000 | 3,200,000 | |||||
Number of employees severed | employee | 45 | 30 | |||||
Corporate [Member] | Successor [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Impairment, restructuring and other charges | $ 8,340,000 | $ 1,260,000 | 44,201,000 | ||||
Corporate [Member] | Predecessor [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Impairment, restructuring and other charges | $ 8,720,000 | ||||||
Change in Scope of RAN Sharing Agreement [Member] | Nextel Brazil [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Restructuring charges | $ 34,200,000 | ||||||
Change in Scope of RAN Sharing Agreement [Member] | Nextel Brazil [Member] | Contract Termination [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Restructuring charges | $ 17,500,000 | ||||||
Number of transmitter and receiver sites expected to be terminated | site | 800 | ||||||
Trademarks [Member] | |||||||
Impairments and Restructuring Charges [Line Items] | |||||||
Intangible Assets, Gross (Excluding Goodwill) | $ 0 | $ 0 |
Impairments, Restructuring an46
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, 2017 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ 9,900 | |||
Successor [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | 32,308 | $ 179,727 | $ 1,384,811 | |
Restructuring Reserve [Roll Forward] | ||||
Accrued restructuring charges, beginning balance | 24,103 | |||
Restructuring charges | 95,363 | |||
Cash payments and other | (6,315) | |||
Foreign currency translation adjustment | (3,380) | |||
Accrued restructuring charges, ending balance | 109,771 | 24,103 | ||
Predecessor [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | $ 36,792 | |||
Brazil [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 8,400 | |||
Brazil [Member] | Successor [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | 23,968 | 178,467 | 1,340,610 | |
Brazil [Member] | Predecessor [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | 28,072 | |||
Corporate [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 5,400 | 3,200 | ||
Corporate [Member] | Successor [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | $ 8,340 | $ 1,260 | $ 44,201 | |
Corporate [Member] | Predecessor [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, restructuring and other charges | $ 8,720 |
Supplemental Financial Statem47
Supplemental Financial Statement Information Prepaid Expenses and Other (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash in escrow | $ 110,000 | |
Successor [Member] | ||
Cash in escrow | 110,024 | $ 163,435 |
Cash collateral related to performance bonds | 50,340 | 30,928 |
Brazil judicial deposits | 43,648 | 0 |
Value-added taxes | 27,635 | 29,829 |
Prepayment for roaming and RAN sharing agreements | 4,586 | 27,731 |
Other prepaid assets | 14,231 | 23,020 |
Other current assets | 3,997 | 5,202 |
Prepaid expenses and others | $ 254,461 | $ 280,145 |
Supplemental Financial Statem48
Supplemental Financial Statement Information Property, Plant and Equipment (Details) - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 489 | $ 675 |
Building and leasehold improvements | 935 | 1,489 |
Network equipment, communication towers and network software | 82,493 | 95,298 |
Software, office equipment, furniture and fixtures and other | 22,498 | 10,952 |
Less: Accumulated depreciation and amortization | (11,461) | 0 |
Property, plant and equipment, gross | 94,954 | 108,414 |
Construction in progress | 22,308 | 21,061 |
Property, plant and equipment, net | $ 117,262 | $ 129,475 |
Supplemental Financial Statem49
Supplemental Financial Statement Information Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
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 | $ 243,681 | $ 205,220 |
Accumulated Amortization | 0 | (10,526) |
Net Carrying Value | $ 243,681 | 194,694 |
Successor [Member] | Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 26 years | |
Gross Carrying Value | $ 226,426 | 189,920 |
Accumulated Amortization | 0 | (5,426) |
Net Carrying Value | $ 226,426 | 184,494 |
Successor [Member] | Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 4 years | |
Gross Carrying Value | $ 17,255 | 15,300 |
Accumulated Amortization | 0 | (5,100) |
Net Carrying Value | $ 17,255 | $ 10,200 |
Supplemental Financial Statem50
Supplemental Financial Statement Information Intangible Amortization Expense (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 14,464 |
2,019 | 11,064 |
2,020 | 7,664 |
2,021 | 7,664 |
2,022 | $ 7,664 |
Supplemental Financial Statem51
Supplemental Financial Statement Information Other Assets (Details) - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Brazil judicial deposits | $ 110,758 | $ 85,123 |
Prepayment for roaming and RAN sharing agreements | 23,747 | 37,433 |
Cash collateral related to performance bonds | 0 | 56,523 |
Other | 83,699 | 92,789 |
Other assets | $ 218,204 | $ 271,868 |
Supplemental Financial Statem52
Supplemental Financial Statement Information (Accrued Expenses and Other) (Details) - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Contingencies | $ 78,006 | $ 56,171 |
Network system and information technology | 48,702 | 50,286 |
Payroll related items and commissions | 32,613 | 45,187 |
Non-income based taxes | 30,044 | 28,158 |
Capital expenditures | 10,198 | 17,514 |
Other | 101,252 | 74,583 |
Accrued expenses and other | $ 300,815 | $ 271,899 |
Supplemental Financial Statem53
Supplemental Financial Statement Information Restricted Cash (Details) - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2015 |
Non-current withholding taxes | $ 67,356 | $ 55,078 | |
Restricted cash | 220,925 | 143,472 | |
Nextel Mexico [Member] | |||
Cash in escrow | 92,463 | 31,365 | $ 187,500 |
Nextel Peru [Member] | |||
Cash in escrow | $ 61,106 | $ 57,029 |
Supplemental Financial Statem54
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, 2017 | Dec. 31, 2016 | |
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 | $ 66,536 | 61,291 | |
Change in capital expenditures accrued and unpaid or financed, including accreted interest capitalized | (4,018) | (15,433) | (9,984) | |
Capital expenditures | 72,612 | 51,103 | 51,307 | |
Interest expense, net | 55,563 | 118,605 | 113,732 | |
Interest capitalized | 2,142 | 1,669 | 283 | |
Interest Expense Including Capitalized Interest | 57,705 | 120,274 | 114,015 | |
Cash paid for interest, net of amounts capitalized | $ 59,914 | 91,297 | 105,636 | |
Current liabilities | 358,403 | 893,173 | ||
Value of stock issued | $ 2,067,700 | |||
Successor [Member] | Nextel Mexico [Member] | ||||
Cash in escrow | 187,500 | $ 92,463 | $ 31,365 | |
Predecessor [Member] | ||||
Cash paid for capital expenditures, including capitalized interest | 88,485 | |||
Change in capital expenditures accrued and unpaid or financed, including accreted interest capitalized | (19,282) | |||
Capital expenditures | 69,203 | |||
Interest expense, net | 82,820 | |||
Interest capitalized | 2,556 | |||
Interest Expense Including Capitalized Interest | 85,376 | |||
Cash paid for interest, net of amounts capitalized | $ 65,598 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | Jan. 27, 2016 | Sep. 11, 2015 | Apr. 30, 2015 | Oct. 31, 2017 | Aug. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | Jul. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Accrued tax contingencies | $ 36,900,000 | |||||||||||
Anticipated proceeds from release of escrow | $ 72,400,000 | |||||||||||
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 | $ 0 | |||||||||
Operating expenses | (60,863,000) | 0 | 0 | |||||||||
Other income (expense), net | 1,159,000 | 0 | 0 | |||||||||
Income (loss) before income tax provision | 15,746,000 | 0 | 0 | |||||||||
Income tax provision | (4,770,000) | 0 | 0 | |||||||||
Loss from discontinued operations, before (loss) income on disposal, net of income taxes | 10,976,000 | 0 | 0 | |||||||||
Income (loss) on disposal of Nextel Argentina, Nextel Mexico and Nextel Peru | 632,000 | 1,005,000 | (19,994,000) | |||||||||
Income (loss) from discontinued operations, net of income taxes | 11,608,000 | 1,005,000 | (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 | |||||||||||
Operating expenses | (675,245,000) | |||||||||||
Other income (expense), net | (49,974,000) | |||||||||||
Income (loss) before income tax provision | (126,181,000) | |||||||||||
Income tax provision | (8,065,000) | |||||||||||
Loss from discontinued operations, before (loss) income on disposal, net of income taxes | (134,246,000) | |||||||||||
Income (loss) on disposal of Nextel Argentina, Nextel Mexico and Nextel Peru | 355,360,000 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | $ 221,114,000 | |||||||||||
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 | |||||||||||
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 | $ 73,500,000 | $ 3,800,000 | ||||||||||
Proceeds from divestiture of businesses | $ 1,448,000,000 | |||||||||||
Payment for settlement of an indemnification claim | 4,000,000 | |||||||||||
Amount remaining in escrow | 110,000,000 | |||||||||||
Income tax settlement | $ 12,200,000 | |||||||||||
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 | ||||||||||
Tax Year 2010 [Member] | Mexico [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Potential claims against escrow | 35,500,000 | |||||||||||
Tax Year 2011 [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Accrued tax contingencies | $ 1,500,000 | |||||||||||
Tax Year 2011 [Member] | Mexico [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Potential claims against escrow | 36,900,000 | |||||||||||
Tax Years 2011 through 2014 [Member] | Mexico [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Potential claims against escrow | $ 37,600,000 |
Debt (Debt) (Details)
Debt (Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | 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 | $ 200,567 | $ 242,076 | ||
Brazil spectrum financing | 122,044 | 125,684 | ||
Other | 0 | 237 | ||
Total debt | 655,707 | 756,316 | ||
Less: current portion | (7,990) | (540,474) | ||
Debt, non-current portion | 647,717 | 215,842 | ||
Successor [Member] | Brazil [Member] | ||||
Debt Instrument [Line Items] | ||||
Equipment financing facility | 242,883 | 291,597 | ||
Brazil capital lease and tower financing obligations | $ 90,213 | $ 96,722 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) R$ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)installment | Dec. 31, 2016BRL (R$) | Jul. 31, 2016USD ($) | Jul. 31, 2016BRL (R$) | Dec. 31, 2015BRL (R$) | Oct. 31, 2012USD ($) | Apr. 30, 2012USD ($) | Dec. 31, 2011USD ($) | |
Long-term Debt | $ 671,779,000 | |||||||||||
Other operating revenues | $ 3,600,000 | $ 7,800,000 | 8,100,000 | $ 7,700,000 | ||||||||
Brazil [Member] | ||||||||||||
Borrowing period of loan | 98 months | |||||||||||
Standstill period | 48 months | |||||||||||
Nextel Brazil [Member] | ||||||||||||
Equipment financing facility | $ 244,600,000 | |||||||||||
Initial term of license | 15 years | |||||||||||
License agreement payment | $ 14,000,000 | R$ 45.5 | ||||||||||
Spectrum purchase price | $ 116,700,000 | R$ 455.0 | ||||||||||
Optional renewal period | 15 years | |||||||||||
Remaining financing | $ 122,200,000 | R$ 409.5 | ||||||||||
Accrued interest (as percent) | 1.00% | |||||||||||
Number of annual installments | installment | 6 | |||||||||||
Brazil [Member] | ||||||||||||
Capitalized debt costs | $ 6,100,000 | |||||||||||
Amount borrowed | $ 196,900,000 | $ 341,200,000 | ||||||||||
Brazilian borrowing rate (as percent) | 9.63% | 19.05% | 19.05% | |||||||||
Brazil Vendor Financing [Domain] | ||||||||||||
Loan agreement, maximum borrowing capacity | $ 500,000,000 | |||||||||||
Brazil Vendor Financing [Domain] | Maximum [Member] | ||||||||||||
Brazil CDB loan floating interest rate (as percent) | 2.90% | |||||||||||
Effective interest rate on convertible notes (as percent) | 4.46% | 4.22% | 4.22% | |||||||||
Brazil Vendor Financing [Domain] | Minimum [Member] | ||||||||||||
Brazil CDB loan floating interest rate (as percent) | 1.80% | |||||||||||
Effective interest rate on convertible notes (as percent) | 3.36% | 3.12% | 3.12% | |||||||||
Brazil Local Loans [Member] | ||||||||||||
Long-term Debt | $ 199,100,000 | |||||||||||
Brazil Local Loans [Member] | Brazil [Member] | ||||||||||||
Floating interest rate based on local Brazilian borrowing rate (as percent) | 127.00% | |||||||||||
Brazilian borrowing rate (as percent) | 139.54% |
Debt (Annual Maturities of Long
Debt (Annual Maturities of Long-Term Debt Outstanding) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 6,655 |
2,018 | 26,687 |
2,019 | 27,799 |
2,020 | 27,766 |
2,021 | 129,311 |
Thereafter | 453,561 |
Total | $ 671,779 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2017 | |
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 | $ 73.8 | $ 16.7 |
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, 2017 | Dec. 31, 2016 |
Carrying Amount | $ 565,494 | $ 659,594 |
Estimated Fair Value | 510,495 | 619,410 |
Equipment Financing [Member] | ||
Carrying Amount | 242,883 | 291,597 |
Estimated Fair Value | 237,958 | 280,893 |
Convertible Notes [Member] | ||
Carrying Amount | 200,567 | 242,313 |
Estimated Fair Value | 144,312 | 221,458 |
Spectrum Financing [Member] | ||
Carrying Amount | 122,044 | 125,684 |
Estimated Fair Value | $ 128,225 | $ 117,059 |
Commitments and Contingencies61
Commitments and Contingencies (Narrative) (Details) R$ in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
May 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017BRL (R$) | Aug. 31, 2016USD ($) | Aug. 31, 2016BRL (R$) | May 31, 2016BRL (R$) | |
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 | $ 178.5 | $ 164.6 | |||||
Purchase obligation | 131.6 | ||||||||
Estimate of possible loss | 760 | ||||||||
Nextel Brazil [Member] | |||||||||
Accrued liabilities | 81.2 | 76.8 | |||||||
Unasserted claims | 7.4 | $ 1.4 | |||||||
2018 [Member] | |||||||||
Purchase obligation | 57.1 | ||||||||
2019 and 2020 [Member] | |||||||||
Purchase obligation | 54.2 | ||||||||
2021 and 2022[Member] | |||||||||
Purchase obligation | 20.3 | ||||||||
Nextel Brazil [Member] | |||||||||
Total rent expenses under operating lease | 63.2 | ||||||||
Length of service agreement | 10 years | ||||||||
Disbursement period for restructuring costs | 5 years | ||||||||
Minimum annual commitment | $ 246.2 | R$ 800 | |||||||
Payment due upon regulatory approval | $ 76.9 | R$ 250 | |||||||
Nextel Brazil [Member] | Five Years [Member] | |||||||||
Minimum annual commitment | $ 36.9 | R$ 116 | 318 | ||||||
Nextel Brazil [Member] | Eight Years [Member] | |||||||||
Minimum annual commitment | R$ | R$ 482 | R$ 482 |
Commitments and Contingencies62
Commitments and Contingencies (Future Minimum Payments for Capital and Operating Lease Obligations) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Capital Leases | |
2,017 | $ 48,354 |
2,018 | 43,026 |
2,019 | 42,890 |
2,020 | 43,016 |
2,021 | 41,298 |
Thereafter | 621,495 |
Total minimum lease payments | 840,079 |
Less: imputed interest | (749,866) |
Total | 90,213 |
Operating Leases | |
2,017 | 127,430 |
2,018 | 112,280 |
2,019 | 101,591 |
2,020 | 90,622 |
2,021 | 77,425 |
Thereafter | 151,364 |
Total minimum lease payments | 660,712 |
Less: imputed interest | 0 |
Total | 660,712 |
Total | |
2,017 | 175,784 |
2,018 | 155,306 |
2,019 | 144,481 |
2,020 | 133,638 |
2,021 | 118,723 |
Thereafter | 772,859 |
Total minimum lease payments | 1,500,791 |
Less: imputed interest | (749,866) |
Total | $ 750,925 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Preferred stock, shares issued (in shares) | 0 | |
Reserved for future issuance | 1,183,767 | |
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, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | |
Successor [Member] | ||||
U.S. | $ (1,820) | $ (41,143) | $ (53,843) | |
Non-U.S. | (295,686) | (316,870) | (1,482,928) | |
Total | $ (297,506) | $ (358,013) | $ (1,536,771) | |
Predecessor [Member] | ||||
U.S. | $ 1,745,628 | |||
Non-U.S. | (224,218) | |||
Total | $ 1,521,410 |
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 | Jun. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | |
Successor [Member] | |||||
Federal | $ 0 | $ 0 | $ 0 | ||
Foreign | 2,502 | 5,779 | (291) | ||
Total current income tax benefit (provision) | 2,502 | 5,779 | (291) | ||
Federal | (403) | 0 | 2,864 | ||
State, net of Federal tax benefit (provision) | (45) | 0 | 319 | ||
Foreign | 2,961 | 568 | 0 | ||
Total deferred income tax benefit (provision) | 2,513 | 568 | 3,183 | ||
Total income tax benefit (provision) | $ 5,015 | $ 6,347 | $ 2,892 | ||
Predecessor [Member] | |||||
Federal | $ 0 | ||||
Foreign | (1,104) | ||||
Total current income tax benefit (provision) | (1,104) | ||||
Federal | (814) | ||||
State, net of Federal tax benefit (provision) | (91) | ||||
Foreign | 0 | ||||
Total deferred income tax benefit (provision) | $ (905) | (905) | |||
Total income tax benefit (provision) | $ (2,009) | $ (2,009) |
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, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | |
Successor [Member] | ||||
Statutory Federal tax rate | 35.00% | 35.00% | 35.00% | |
Reorganization items | 0.00% | 0.00% | 0.00% | |
Effect of foreign operations | (12.00%) | 0.00% | (2.00%) | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.00% | (37.00%) | 0.00% | |
Change in deferred tax asset valuation allowance | (20.00%) | 16.00% | (32.00%) | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent | 0.00% | (12.00%) | 0.00% | |
Other, net | (1.00%) | 0.00% | (1.00%) | |
Effective tax rate | 2.00% | 2.00% | 0.00% | |
Predecessor [Member] | ||||
Statutory Federal tax rate | 35.00% | |||
Reorganization items | (46.00%) | |||
Effect of foreign operations | 0.00% | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.00% | |||
Change in deferred tax asset valuation allowance | 9.00% | |||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent | 0.00% | |||
Other, net | 2.00% | |||
Effective tax rate | 0.00% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other | $ 0 | |
Total deferred tax liability | $ 2,432 | 0 |
Net deferred tax asset | 529 | 0 |
Successor [Member] | ||
Net operating losses and capital loss carryforwards | 6,509,165 | 6,363,915 |
Allowance for doubtful accounts | 20,122 | 17,867 |
Accrued expenses | 53,867 | 54,263 |
Accrual for contingent liabilities | 27,016 | 24,669 |
Intangible assets | 121,122 | 130,983 |
Property, plant and equipment | 143,701 | 253,882 |
Leasing related activity | 27,519 | 25,822 |
Equity compensation | 1,151 | 1,182 |
Long term debt | 55,146 | 53,159 |
Inventory reserve | 717 | 1,729 |
Other | 1,004 | 17,573 |
Total deferred tax asset before allowances | 6,960,530 | 6,945,044 |
Valuation allowance | (6,957,569) | (6,945,044) |
Total deferred tax asset | 2,961 | $ 0 |
Other | $ 2,432 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Taxable income before net operating loss deduction (as percent) | 30.00% |
Spain [Member] | |
Net operating loss carryforwards | $ 964.2 |
Net operating loss carryforwards, expiration period | 18 years |
Minimum [Member] | |
Net operating loss carryforwards | $ 1,100 |
Maximum [Member] | |
Net operating loss carryforwards | 8,700 |
Domestic, State, And Local Jurisdiction [Member] | |
Net operating loss carryforwards | 1,400 |
Operating loss carryfowards, annual limitation | 40.2 |
Operating loss carryforwards | 898.9 |
Nextel Brazil [Member] | |
Net operating loss carryforwards | $ 2,100 |
Income Taxes (Deferred Tax As69
Income Taxes (Deferred Tax Asset Valuation Allowance) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Successor [Member] | ||
Deferred tax assets, valuation allowance | $ 6,957,569 | $ 6,945,044 |
Successor [Member] | Brazil [Member] | ||
Deferred tax assets, valuation allowance | 1,162,500 | |
Successor [Member] | U.S. [Member] | ||
Deferred tax assets, valuation allowance | 240,400 | |
Successor [Member] | Luxembourg [Member] | ||
Deferred tax assets, valuation allowance | 5,313,700 | |
Successor [Member] | Spain [Member] | ||
Deferred tax assets, valuation allowance | $ 241,000 | |
Predecessor [Member] | ||
Deferred tax assets, valuation allowance | 6,945,000 | |
Predecessor [Member] | Brazil [Member] | ||
Deferred tax assets, valuation allowance | 1,089,900 | |
Predecessor [Member] | U.S. [Member] | ||
Deferred tax assets, valuation allowance | 367,200 | |
Predecessor [Member] | Luxembourg [Member] | ||
Deferred tax assets, valuation allowance | 5,275,900 | |
Predecessor [Member] | Spain [Member] | ||
Deferred tax assets, valuation allowance | $ 212,000 |
Employee Stock and Benefit Pl70
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, 2017 | Dec. 31, 2016 | 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 | 5,071,457 | ||||||
Share-based payment expense related to stock options | $ 1,000,000 | $ 1,500,000 | $ 2,600,000 | $ 2,800,000 | ||||
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 | $ 0.22 | $ 1.48 | |||||
Share-based payment expense related to restricted stock | $ 1,900,000 | $ 2,300,000 | $ 2,000,000 | $ 3,400,000 | ||||
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 | $ 800,000 | |||||||
Recognized over a weighted average period | 5 months 23 days | |||||||
Stock Options [Member] | ||||||||
Stock options, granted (in shares) | 1,580,208 | 468,069 | 2,250,000 | |||||
Unrecognized compensation cost | $ 1,100,000 | |||||||
Recognized over a weighted average period | 1 year 6 months | |||||||
Number of options, exercised (in shares) | 0 | |||||||
Aggregate intrinsic value of options, outstanding | $ 0 | $ 0 |
Employee Stock and Benefit Pl71
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, 2017 | Dec. 31, 2016 |
Number of Options | ||||
Number of Options Outstanding, ending balance (in shares) | 3,357,698 | 3,276,105 | ||
Number of Options, Granted (in shares) | 1,580,208 | 468,069 | 2,250,000 | |
Number of Options, Exercised (in shares) | 0 | |||
Number of Options, Forfeited (in shares) | (2,168,407) | |||
Number of Options Outstanding, beginning balance (in shares) | 3,276,105 | |||
Number of Options, Exercisable (in shares) | 660,677 | |||
Weighted Average Exercise Price per Option | ||||
Weighted Average Exercise Price per Option, Outstanding, beginning balance (in dollars per share) | $ 10.14 | |||
Weighted Average Exercise Price per Option, Granted (in dollars per share) | 0.58 | |||
Weighted Average Exercise Price per Option, Exercised (in dollars per share) | 0 | |||
Weighted Average Exercise Price per Option, Forfeited (in dollars per share) | 11.02 | |||
Weighted Average Exercise Price per Option, Outstanding, ending balance (in dollars per share) | 3.16 | $ 10.14 | ||
Weighted Average Exercise Price per Option, ending balance, Exercisable (in dollars per share) | $ 9.02 | |||
Weighted Average Remaining Life | ||||
Weighted Average Remaining Life of Options, Outstanding | 8 years 9 months 29 days | |||
Weighted Average Remaining Life, Exercisable | 7.48 | |||
Aggregate Intrinsic Value of Options, Outstanding | $ 0 | $ 0 | ||
Aggregate Intrinsic Value of Options, Exercisable | $ 0 |
Employee Stock and Benefit Pl72
Employee Stock and Benefit Plans (Assumptions in Option Pricing Model) (Details) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||
Risk free interest rate, minimum | 1.71% | 1.53% | 1.53% |
Risk free interest rate, maximum | 2.05% | 1.53% | 1.90% |
Expected stock price volatility, minimum | 31.73% | 40.87% | 40.71% |
Expected stock price volatility, maximum | 41.92% | 40.87% | 40.87% |
Expected term in years | 5 years 1 month 28 days | 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% | 0.00% |
Employee Stock and Benefit Pl73
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, 2017 |
Number of Shares | ||
Restricted stock awards as of December 31, 2016 | 522,442 | |
Granted | 564,311 | 0 |
Vested | (185,387) | |
Forfeited | (239,705) | |
Restricted stock awards as of December 31, 2017 | 97,350 | |
Weighted Average Grant Date Fair Value Per Share | ||
Weighted Average Grant Date Fair Value Per Share, Restricted Stock Awards (in dollars per share) | $ 10.65 | |
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) | 12.06 | |
Weighted Average Grant Date Fair Value Per Share, Forfeited (in dollars per share) | 7.38 | |
Weighted Average Grant Date Fair Value Per Share, Restricted Stock Awards (in dollars per share) | $ 15.99 |
Segment Information (Segment Re
Segment Information (Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Predecessor [Member] | ||||||||||||
Operating revenues | $ 683,711 | |||||||||||
Segment earnings (losses) | (113,216) | |||||||||||
Impairment, restructuring and other charges | (36,792) | |||||||||||
Depreciation and amortization | (153,878) | |||||||||||
Foreign currency transaction (losses) gains, 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 | 69,203 | |||||||||||
Predecessor [Member] | Brazil [Member] | ||||||||||||
Operating revenues | 683,611 | |||||||||||
Segment earnings (losses) | (75,234) | |||||||||||
Capital expenditures | 68,385 | |||||||||||
Predecessor [Member] | Corporate and Eliminations [Member] | ||||||||||||
Operating revenues | 100 | |||||||||||
Segment earnings (losses) | (37,982) | |||||||||||
Capital expenditures | $ 818 | |||||||||||
Successor [Member] | ||||||||||||
Operating revenues | $ 188,870 | $ 204,808 | $ 225,134 | $ 250,955 | $ 248,440 | $ 260,836 | $ 249,213 | $ 226,557 | $ 529,434 | $ 869,767 | $ 985,046 | |
Segment earnings (losses) | (42,025) | (55,245) | 30,365 | |||||||||
Impairment, restructuring and other charges | (32,308) | (179,727) | (1,384,811) | |||||||||
Depreciation and amortization | (85,364) | (37,187) | (172,383) | |||||||||
Foreign currency transaction (losses) gains, net | (99,737) | (1,271) | 76,615 | |||||||||
Interest expense and other, net | (39,539) | (85,028) | (85,754) | |||||||||
Loss from continuing operations before reorganization items and income tax provision | (298,973) | (358,458) | (1,535,968) | |||||||||
Capital expenditures | 72,612 | 51,103 | 51,307 | |||||||||
Identifiable assets | 1,105,098 | 1,418,509 | 1,105,098 | 1,418,509 | ||||||||
Successor [Member] | Brazil [Member] | ||||||||||||
Operating revenues | 529,332 | 869,661 | 984,878 | |||||||||
Segment earnings (losses) | (15,925) | (31,071) | 67,186 | |||||||||
Capital expenditures | 72,112 | 51,103 | 51,307 | |||||||||
Identifiable assets | 957,495 | 1,000,098 | 957,495 | 1,000,098 | ||||||||
Successor [Member] | Corporate and Eliminations [Member] | ||||||||||||
Operating revenues | 102 | 106 | 168 | |||||||||
Segment earnings (losses) | (26,100) | (24,174) | (36,821) | |||||||||
Capital expenditures | $ 500 | 0 | 0 | |||||||||
Identifiable assets | $ 147,603 | $ 418,411 | $ 147,603 | $ 418,411 |
Quarterly Financial Data (Una75
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating revenues | $ 188,870 | $ 204,808 | $ 225,134 | $ 250,955 | $ 248,440 | $ 260,836 | $ 249,213 | $ 226,557 | $ 529,434 | $ 869,767 | $ 985,046 |
Operating loss | (40,007) | (83,372) | (68,931) | (79,849) | (57,318) | (1,386,696) | (28,751) | (54,064) | (159,697) | (272,159) | (1,526,829) |
Net loss from continuing operations | (77,096) | (94,428) | (87,467) | (92,675) | (84,722) | (1,411,554) | (4,796) | (32,807) | (292,491) | (351,666) | (1,533,879) |
Net (loss) income from discontinued operations | $ (1,562) | $ (92) | $ 2,697 | $ (38) | $ (3,749) | $ (7,389) | $ (5,075) | $ (3,781) | $ 11,608 | $ 1,005 | $ (19,994) |
Net (loss) income from continuing operations, per common share, basic (in dollars per share) | $ (0.77) | $ (0.94) | $ (0.87) | $ (0.92) | $ (0.84) | $ (14.10) | $ (0.05) | $ (0.33) | $ (2.93) | $ (3.51) | $ (15.32) |
Net (loss) income from continuing operations, per common share, basic (in dollars per share) | (0.02) | 0 | 0.02 | 0 | (0.04) | (0.07) | (0.05) | (0.04) | 0.12 | 0.01 | (0.20) |
Net (loss) income from discontinued operations, per common share, basic (in dollars per share) | (0.77) | (0.94) | (0.87) | (0.92) | (0.84) | (14.10) | (0.05) | (0.33) | (2.93) | (3.51) | (15.32) |
Net income (loss) from discontinued operations per common share, diluted (in dollars per share) | $ (0.02) | $ 0 | $ 0.02 | $ 0 | $ (0.04) | $ (0.07) | $ (0.05) | $ (0.04) | $ 0.12 | $ 0.01 | $ (0.20) |
Quarterly Financial Data (Una76
Quarterly Financial Data (Unaudited) Quarterly Financial Data (Unaudited) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Nextel Brazil [Member] | ||
Segment Reporting Information [Line Items] | ||
Non-cash impairment charge | $ 57.9 | $ 1,340 |
Schedule I - Condensed Financ77
Schedule I - Condensed Financial Information of Registrant (Balance Sheet) (Details) - Successor [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 01, 2015 | Jun. 30, 2015 |
Current assets | |||||
Cash and cash equivalents | $ 193,888 | $ 257,380 | $ 342,184 | $ 423,135 | |
Short-term investments | 16,711 | 73,859 | |||
Prepaid expenses and other | 254,461 | 280,145 | |||
Total current assets | 574,938 | 773,485 | |||
Total assets | 1,105,098 | 1,418,509 | |||
Current liabilities | |||||
Total current liabilities | 358,403 | 893,173 | |||
Other long-term liabilities | 220,925 | 143,472 | |||
Total (deficit) equity | (43,274) | 166,022 | 1,543,995 | $ 2,067,665 | |
Total liabilities and stockholders’ (deficit) equity | 1,105,098 | 1,418,509 | |||
NII Holdings Inc. (Parent) [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 28,167 | 54,101 | $ 56,011 | ||
Short-term investments | 0 | 1,242 | |||
Prepaid expenses and other | 104 | 0 | |||
Total current assets | 28,271 | 55,343 | |||
Long-term intercompany receivables | 15 | 3,146 | |||
Other assets | 2 | 112,503 | |||
Total assets | 28,288 | 170,992 | |||
Current liabilities | |||||
Short-term intercompany payables | 1,439 | 4,570 | |||
Total current liabilities | 1,439 | 4,570 | |||
Other long-term liabilities | 148,796 | 400 | |||
Total liabilities | 150,235 | 4,970 | |||
Total (deficit) equity | (121,947) | 166,022 | |||
Total liabilities and stockholders’ (deficit) equity | $ 28,288 | $ 170,992 |
Schedule I - Condensed Financ78
Schedule I - Condensed Financial Information of Registrant (Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | |
Successor [Member] | ||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Operating revenues | $ 188,870 | $ 204,808 | $ 225,134 | $ 250,955 | $ 248,440 | $ 260,836 | $ 249,213 | $ 226,557 | $ 529,434 | $ 869,767 | $ 985,046 | |||
Selling, general and administrative | 311,703 | 510,168 | 560,760 | |||||||||||
Impairment, restructuring and other charges | 32,308 | 179,727 | 1,384,811 | |||||||||||
Total operating expenses | 689,131 | 1,141,926 | 2,511,875 | |||||||||||
Operating loss | (40,007) | (83,372) | (68,931) | (79,849) | (57,318) | (1,386,696) | (28,751) | (54,064) | (159,697) | (272,159) | (1,526,829) | |||
Interest expense, net | (55,563) | (118,605) | (113,732) | |||||||||||
Other (expense) income, net | (1,176) | (7,930) | (9,711) | |||||||||||
Total other expense | (139,276) | (86,299) | (9,139) | |||||||||||
Loss from continuing operations before reorganization items and income tax benefit (provision) | (298,973) | (358,458) | (1,535,968) | |||||||||||
Total reorganization items | 1,467 | 445 | (803) | |||||||||||
Income tax benefit (provision) (Note 11) | 5,015 | 6,347 | 2,892 | |||||||||||
Net (loss) income from continuing operations | (77,096) | (94,428) | (87,467) | (92,675) | (84,722) | (1,411,554) | (4,796) | (32,807) | (292,491) | (351,666) | (1,533,879) | |||
(Loss) income from discontinued operations, net of income taxes | $ 1,562 | $ 92 | $ (2,697) | $ 38 | $ 3,749 | $ 7,389 | $ 5,075 | $ 3,781 | (11,608) | (1,005) | 19,994 | |||
Net (loss) income attributable to NII Holdings | $ (280,883) | (280,883) | (350,661) | (1,553,873) | ||||||||||
Comprehensive (loss) income, net of income taxes | ||||||||||||||
Foreign currency translation adjustment | (248,781) | 7,696 | 169,785 | |||||||||||
Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Peru | (1,672) | 0 | 0 | |||||||||||
Other | 4,734 | 0 | 0 | |||||||||||
Other comprehensive income (loss) | (245,719) | 9,300 | 169,785 | |||||||||||
Net (loss) income attributable to NII Holdings | $ (280,883) | (280,883) | (350,661) | (1,553,873) | ||||||||||
Total comprehensive (loss) income attributable to NII Holdings | (526,602) | (293,318) | (1,384,088) | |||||||||||
Successor [Member] | NII Holdings Inc. (Parent) [Member] | ||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Operating revenues | 0 | 0 | 0 | |||||||||||
Selling, general and administrative | 0 | 0 | 0 | |||||||||||
Impairment, restructuring and other charges | 0 | 0 | 36,839 | |||||||||||
Depreciation and amortization | 744 | 0 | 1,116 | |||||||||||
Total operating expenses | 744 | 0 | 37,955 | |||||||||||
Operating loss | (744) | 0 | (37,955) | |||||||||||
Interest expense, net | 0 | 0 | 0 | |||||||||||
Intercompany interest expense | (118,365) | 0 | (117,078) | |||||||||||
Interest income | 0 | 0 | 0 | |||||||||||
Intercompany interest income | 97 | 231 | 197 | |||||||||||
Equity in (loss) income of affiliates | (167,324) | (300,107) | (1,401,998) | |||||||||||
Other (expense) income, net | (3) | (1,138) | (206) | |||||||||||
Total other expense | (285,595) | (301,014) | (1,519,085) | |||||||||||
Loss from continuing operations before reorganization items and income tax benefit (provision) | (286,339) | (301,014) | (1,557,040) | |||||||||||
Total reorganization items | (373) | 0 | 0 | |||||||||||
Income tax benefit (provision) (Note 11) | (448) | 0 | 3,183 | |||||||||||
Net (loss) income from continuing operations | (287,160) | (301,014) | (1,553,857) | |||||||||||
(Loss) income from discontinued operations, net of income taxes | (6,277) | 0 | 16 | |||||||||||
Net (loss) income attributable to NII Holdings | (280,883) | (301,014) | (1,553,873) | |||||||||||
Comprehensive (loss) income, net of income taxes | ||||||||||||||
Foreign currency translation adjustment | (248,781) | 7,696 | 169,785 | |||||||||||
Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Peru | (1,672) | 0 | 0 | |||||||||||
Other | 4,734 | 0 | 0 | |||||||||||
Other comprehensive income (loss) | (245,719) | 7,696 | 169,785 | |||||||||||
Net (loss) income attributable to NII Holdings | (280,883) | (301,014) | (1,553,873) | |||||||||||
Total comprehensive (loss) income attributable to NII Holdings | (526,602) | $ (293,318) | $ (1,384,088) | |||||||||||
Predecessor [Member] | ||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Operating revenues | $ 683,711 | |||||||||||||
Selling, general and administrative | 419,699 | |||||||||||||
Impairment, restructuring and other charges | 36,792 | |||||||||||||
Total operating expenses | 987,597 | |||||||||||||
Operating loss | (303,886) | |||||||||||||
Interest expense, net | (82,820) | |||||||||||||
Other (expense) income, net | (137) | |||||||||||||
Total other expense | (131,578) | |||||||||||||
Loss from continuing operations before reorganization items and income tax benefit (provision) | (435,464) | |||||||||||||
Total reorganization items | 1,956,874 | |||||||||||||
Income tax benefit (provision) (Note 11) | (2,009) | $ (2,009) | ||||||||||||
Net (loss) income from continuing operations | 1,519,401 | |||||||||||||
(Loss) income from discontinued operations, net of income taxes | (221,114) | |||||||||||||
Net (loss) income attributable to NII Holdings | 1,740,515 | |||||||||||||
Comprehensive (loss) income, net of income taxes | ||||||||||||||
Foreign currency translation adjustment | (205,899) | |||||||||||||
Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Peru | 421,953 | |||||||||||||
Other | 2,956 | |||||||||||||
Other comprehensive income (loss) | 219,010 | |||||||||||||
Net (loss) income attributable to NII Holdings | 1,740,515 | |||||||||||||
Total comprehensive (loss) income attributable to NII Holdings | 1,959,525 | |||||||||||||
Predecessor [Member] | NII Holdings Inc. (Parent) [Member] | ||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Operating revenues | 0 | |||||||||||||
Selling, general and administrative | 429 | |||||||||||||
Impairment, restructuring and other charges | 0 | |||||||||||||
Depreciation and amortization | 0 | |||||||||||||
Total operating expenses | 429 | |||||||||||||
Operating loss | (429) | |||||||||||||
Interest expense, net | (119) | |||||||||||||
Intercompany interest expense | (159,117) | |||||||||||||
Interest income | 37 | |||||||||||||
Intercompany interest income | 125 | |||||||||||||
Equity in (loss) income of affiliates | 1,793,151 | |||||||||||||
Other (expense) income, net | 995 | |||||||||||||
Total other expense | 1,635,072 | |||||||||||||
Loss from continuing operations before reorganization items and income tax benefit (provision) | 1,634,643 | |||||||||||||
Total reorganization items | 68,355 | |||||||||||||
Income tax benefit (provision) (Note 11) | (1,002) | |||||||||||||
Net (loss) income from continuing operations | 1,701,996 | |||||||||||||
(Loss) income from discontinued operations, net of income taxes | (38,519) | |||||||||||||
Net (loss) income attributable to NII Holdings | (280,883) | 1,740,515 | ||||||||||||
Comprehensive (loss) income, net of income taxes | ||||||||||||||
Foreign currency translation adjustment | (205,899) | |||||||||||||
Reclassification adjustment for sale of Nextel Argentina, Nextel Mexico and Nextel Peru | 421,953 | |||||||||||||
Other | 2,956 | |||||||||||||
Other comprehensive income (loss) | 219,010 | |||||||||||||
Net (loss) income attributable to NII Holdings | $ (280,883) | 1,740,515 | ||||||||||||
Total comprehensive (loss) income attributable to NII Holdings | $ 1,959,525 |
Schedule I - Condensed Financ79
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, 2017 | Dec. 31, 2016 | |
Successor [Member] | |||||
Cash flows from operating activities: | |||||
Net (loss) income attributable to NII Holdings | $ (280,883) | $ (280,883) | $ (350,661) | $ (1,553,873) | |
Net cash used in operating activities | (78,485) | (87,138) | (45,205) | ||
Cash flows from investing activities: | |||||
Other, net | 4,697 | 275 | (2,243) | ||
Net cash provided by (used in) investing activities | (976) | 71,795 | 54,450 | ||
Cash flows from financing activities: | |||||
Net cash used in financing activities | (25,068) | (48,690) | (93,004) | ||
Net (decrease) increase in cash and cash equivalents | (80,951) | (63,492) | (84,804) | ||
Cash and cash equivalents, beginning of period | 423,135 | 257,380 | 342,184 | ||
Cash and cash equivalents, end of period | 342,184 | 342,184 | $ 423,135 | 193,888 | 257,380 |
Successor [Member] | NII Holdings Inc. (Parent) [Member] | |||||
Cash flows from operating activities: | |||||
Net (loss) income attributable to NII Holdings | (280,883) | (301,014) | (1,553,873) | ||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities | 284,932 | 1,554,075 | |||
Net cash used in operating activities | (16,082) | 202 | |||
Cash flows from investing activities: | |||||
Investments in subsidiaries | (10,043) | (36,356) | |||
Return of investments in subsidiaries | 162 | 34,260 | |||
Other, net | 0 | (16) | |||
Net cash provided by (used in) investing activities | (9,881) | (2,112) | |||
Cash flows from financing activities: | |||||
Other, net | 29 | 0 | |||
Net cash used in financing activities | 29 | 0 | |||
Net (decrease) increase in cash and cash equivalents | (25,934) | (1,910) | |||
Cash and cash equivalents, beginning of period | 54,101 | 56,011 | |||
Cash and cash equivalents, end of period | 56,011 | 56,011 | $ 28,167 | 54,101 | |
Predecessor [Member] | |||||
Cash flows from operating activities: | |||||
Net (loss) income attributable to NII Holdings | 1,740,515 | ||||
Net cash used in operating activities | (254,757) | ||||
Cash flows from investing activities: | |||||
Other, net | 3,501 | ||||
Net cash provided by (used in) investing activities | 1,027,821 | ||||
Cash flows from financing activities: | |||||
Net cash used in financing activities | (778,231) | ||||
Net (decrease) increase in cash and cash equivalents | 88,941 | ||||
Cash and cash equivalents, beginning of period | 423,135 | 334,194 | |||
Cash and cash equivalents, end of period | 423,135 | ||||
Predecessor [Member] | NII Holdings Inc. (Parent) [Member] | |||||
Cash flows from operating activities: | |||||
Net (loss) income attributable to NII Holdings | (280,883) | 1,740,515 | |||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities | 280,910 | (1,735,521) | |||
Net cash used in operating activities | 27 | 4,994 | |||
Cash flows from investing activities: | |||||
Investments in subsidiaries | (29,690) | (61,405) | |||
Return of investments in subsidiaries | 35,315 | 23 | |||
Other, net | 0 | 0 | |||
Net cash provided by (used in) investing activities | 5,625 | (61,382) | |||
Cash flows from financing activities: | |||||
Other, net | 0 | 0 | |||
Net cash used in financing activities | 0 | 0 | |||
Net (decrease) increase in cash and cash equivalents | 5,652 | (56,388) | |||
Cash and cash equivalents, beginning of period | 50,359 | 106,747 | $ 56,011 | ||
Cash and cash equivalents, end of period | $ 56,011 | $ 56,011 | $ 50,359 |
Schedule I - Condensed Financ80
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 Q81
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | ||
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 | $ 54,221 | $ 39,033 | |
Charged to Costs and Expenses | 32,279 | 65,396 | 76,518 | 77,883 | |
Deductions and Other Adjustments | [1] | 6,754 | (96,145) | (88,728) | (62,695) |
Balance at End of Period | 39,033 | 0 | 42,011 | 54,221 | |
Allowance for doubtful accounts | |||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Balance at Beginning of Period | 4,388,792 | 4,447,133 | 6,945,044 | 5,290,813 | |
Charged to Costs and Expenses | 1,010,438 | 22,828 | 28,637 | 1,555,006 | |
Deductions and Other Adjustments | [1] | (108,417) | (81,169) | (16,112) | 99,225 |
Balance at End of Period | $ 5,290,813 | $ 4,388,792 | $ 6,957,569 | $ 6,945,044 | |
[1] | Balance atBeginning ofPeriod Charged toCosts andExpenses Deductionsand OtherAdjustments (1) Balance atEnd ofPeriodYear Ended December 31, 2017 — Successor Company Allowance for doubtful accounts$54,221 $76,518 $(88,728) $42,011Valuation allowance for deferred tax assets$6,945,044 $28,637 $(16,112) $6,957,569Year 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) $4,388,792_______________________________________(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. |