Document and Entity Information
Document and Entity Information Statement - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NII HOLDINGS INC | |
Central Index Key | 1,037,016 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 100,873,423 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 152,712 | $ 193,888 |
Short-term investments | 48,407 | 16,711 |
Accounts receivable, net of allowance for doubtful accounts of $22,105 and $42,011 | 97,415 | 106,715 |
Handset and accessory inventory | 2,295 | 3,163 |
Prepaid expenses and other | 234,765 | 264,017 |
Total current assets | 535,594 | 584,494 |
Property, plant and equipment, net | 121,593 | 117,262 |
Intangible assets, net | 158,342 | 191,757 |
Other assets | 224,059 | 220,009 |
Total assets | 1,039,588 | 1,113,522 |
Current liabilities | ||
Accounts payable | 45,103 | 42,284 |
Accrued expenses and other | 265,217 | 308,129 |
Current portion of long-term debt | 21,755 | 7,990 |
Total current liabilities | 332,075 | 358,403 |
Long-term debt | 623,332 | 647,717 |
Other long-term liabilities | 271,192 | 218,590 |
Total liabilities | 1,226,599 | 1,224,710 |
Commitments and contingencies (Note 8) | ||
Stockholders’ deficit | ||
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, 100,744 shares issued and outstanding — 2018, 100,384 shares issued and outstanding — 2017 | 101 | 100 |
Paid-in capital | 2,141,079 | 2,139,299 |
Accumulated deficit | (2,237,135) | (2,127,876) |
Accumulated other comprehensive loss | (1,813) | (47,266) |
Total NII Holdings stockholders’ deficit | (97,768) | (35,743) |
Noncontrolling interest | (89,243) | (75,445) |
Total deficit | (187,011) | (111,188) |
Total liabilities and stockholders’ deficit | $ 1,039,588 | $ 1,113,522 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful Accounts | $ 22,105 | $ 42,011 |
Undesignated preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Undesignated preferred stock, shares authorized (shares) | 10,000,000 | 10,000,000 |
Undesignated preferred stock, shares issued (shares) | 0 | 0 |
Undesignated preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 140,000,000 | 140,000,000 |
Common stock, shares issued (shares) | 100,744,000 | 100,384,000 |
Common stock, shares outstanding (shares) | 100,744,000 | 100,384,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating revenues | ||||
Operating revenues | $ 141,737 | $ 205,423 | $ 478,986 | $ 681,512 |
Operating expenses | ||||
Cost of service (exclusive of depreciation and amortization included below) | 61,634 | 91,230 | 220,295 | 281,780 |
Cost of handsets and accessories | 3,452 | 8,736 | 19,532 | 30,443 |
Selling, general and administrative | 68,503 | 139,004 | 235,474 | 403,082 |
Impairment and restructuring charges | (2) | 34,794 | 14,070 | 160,968 |
Depreciation | 3,614 | 2,428 | 11,626 | 17,031 |
Amortization | 3,191 | 3,663 | 10,229 | 11,420 |
Operating expenses | 140,392 | 279,855 | 511,226 | 904,724 |
Operating loss | 1,345 | (74,432) | (32,240) | (223,212) |
Other (expense) income | ||||
Interest expense, net | (24,324) | (33,278) | (78,940) | (91,245) |
Interest income | 1,887 | 19,012 | 8,866 | 35,956 |
Foreign currency transaction (losses) gains, net | (12,238) | 14,174 | (60,092) | 12,197 |
Other expense, net | (16,391) | (10,964) | (25,972) | (5,104) |
Other (expense) income | (51,066) | (11,056) | (156,138) | (48,196) |
Loss from continuing operations before reorganization items and income tax provision | (49,721) | (85,488) | (188,378) | (271,408) |
Income tax benefit | 0 | 0 | 0 | 5,778 |
Net loss from continuing operations | (49,721) | (85,488) | (188,378) | (265,630) |
(Loss) income from discontinued operations, net of income taxes | (163) | (92) | (2,946) | 2,567 |
Net loss | (49,884) | (85,580) | (191,324) | (263,063) |
Net loss attributable to noncontrolling interest | (8,866) | (24,622) | (47,965) | (24,622) |
Net loss attributable to NII Holdings | $ (41,018) | $ (60,958) | $ (143,359) | $ (238,441) |
Net loss from continuing operations per common share, basic and diluted (in dollars per share) | $ (0.50) | $ (0.85) | $ (1.88) | $ (2.65) |
Net (loss) income from discontinued operations per common share, basic and diluted (in dollars per share) | 0 | 0 | (0.03) | 0.03 |
Net loss attributable to NII Holdings per common share, basic and diluted (in dollars per share) | $ (0.50) | $ (0.85) | $ (1.91) | $ (2.62) |
Weighted average number of common shares outstanding, basic and diluted (in shares) | 100,592 | 100,383 | 100,458 | 100,314 |
Comprehensive loss, net of income taxes | ||||
Foreign currency translation adjustment | $ 7,386 | $ (9,516) | $ 45,453 | $ (4,698) |
Other comprehensive income (loss) | 7,386 | (9,516) | 45,453 | (4,698) |
Net loss attributable to NII Holdings | (41,018) | (60,958) | (143,359) | (238,441) |
Total comprehensive loss | (33,632) | (70,474) | (97,906) | (243,139) |
Service and other revenues | ||||
Operating revenues | ||||
Operating revenues | 138,596 | 200,874 | 465,603 | 664,446 |
Handset and accessory revenues | ||||
Operating revenues | ||||
Operating revenues | $ 3,141 | $ 4,549 | $ 13,383 | $ 17,066 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total NII Holdings Stockholders’ Deficit | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Implementation of revenue recognition accounting standard | $ 48,703 | $ 34,100 | $ 34,100 | $ 14,603 | |||
Beginning balance (shares) at Dec. 31, 2017 | 100,384 | ||||||
Beginning balance at Dec. 31, 2017 | (111,188) | $ 100 | $ 2,139,299 | (2,127,876) | $ (47,266) | (35,743) | (75,445) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (191,324) | (143,359) | (143,359) | (47,965) | |||
Other comprehensive income | 64,731 | 45,453 | 45,453 | 19,278 | |||
Share-based compensation activity (shares) | 360 | ||||||
Share-based compensation activity | 2,067 | $ 1 | 1,780 | 1,781 | 286 | ||
Ending balance (shares) at Sep. 30, 2018 | 100,744 | ||||||
Ending balance at Sep. 30, 2018 | $ (187,011) | $ 101 | $ 2,141,079 | $ (2,237,135) | $ (1,813) | $ (97,768) | $ (89,243) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (191,324) | $ (263,063) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Loss (income) from discontinued operations | 2,946 | (2,567) |
Amortization of debt discounts (premiums) and financing costs | 1,788 | (1,139) |
Depreciation and amortization | 21,855 | 28,451 |
Provision for losses on accounts receivable | 27,256 | 63,527 |
Foreign currency transaction losses (gains), net | 60,092 | (12,197) |
Impairment charges and losses on disposals of fixed assets | 1,610 | 63,274 |
Share-based payment expense | 2,775 | 3,951 |
Loss on derivative instruments | 11,739 | 16 |
Other, net | (2,086) | (2,181) |
Change in assets and liabilities: | ||
Accounts receivable | (37,350) | (31,859) |
Prepaid value-added taxes | 1,092 | 13,985 |
Handset and accessory inventory | 36 | 4,554 |
Prepaid expenses and other | (29,494) | 8,709 |
Other long-term assets | (12,348) | (27,894) |
Accrued value-added taxes | 13,745 | 7,642 |
Other long-term liabilities | 23,510 | 92,273 |
Accounts payable, accrued expenses, deferred revenues and other | 7,273 | (8,139) |
Net cash used in operating activities | (96,885) | (62,657) |
Cash flows from investing activities: | ||
Capital expenditures | (45,357) | (52,068) |
Purchases of investments | (641,082) | (494,975) |
Proceeds from sales of investments | 604,320 | 548,265 |
Change in deposits, net | 43,341 | 28,127 |
Other, net | (3,689) | (1,089) |
Total investing cash (used in) provided by continuing operations | (42,467) | 28,260 |
Total investing cash used in discontinued operations | (3,953) | (117) |
Net cash (used in) provided by investing activities | (46,420) | 28,143 |
Cash flows from financing activities: | ||
Gross proceeds from issuance of convertible notes | 115,000 | 0 |
Proceeds from minority interest investment | 0 | 50,000 |
Repayments under equipment financing facility and local bank loans | (1,421) | (85,915) |
Repayments under capital leases and other | (4,413) | (5,334) |
Payments of debt financing costs | (9,299) | 0 |
Net cash provided by (used in) financing activities | 99,867 | (41,249) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,536) | 543 |
Net decrease in cash, cash equivalents and restricted cash | (44,974) | (75,220) |
Cash, cash equivalents and restricted cash, beginning of period | 305,778 | 422,232 |
Cash, cash equivalents and restricted cash, end of period | $ 260,804 | $ 347,012 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation 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. Our unaudited condensed consolidated financial statements have been prepared under the rules and regulations of the Securities and Exchange Commission, or the SEC. While these financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements, they reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of the results for interim periods. In addition, the year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. We refer to our majority-owned Brazilian operating company, Nextel Telecomunicações Ltda., as Nextel Brazil. You should read these condensed consolidated financial statements in conjunction with the consolidated financial statements and notes contained in our annual report on Form 10-K for the year ended December 31, 2017 and the condensed consolidated financial statements and notes contained in our quarterly reports on Form 10-Q for the periods ended March 31, 2018 and June 30, 2018. You should not expect results of operations for interim periods to be an indication of the results for a full year. Our consolidated results from continuing operations in this quarterly report on Form 10-Q include the results of operations of Nextel Brazil and our corporate headquarters. Revision of Prior Period Financial Statements. In connection with the preparation of our condensed consolidated financial statements for the three months ended September 30, 2018, we determined that two errors existed in our previously filed financial statements. Specifically, for both the three and nine months ended September 30, 2017, service and other revenues were understated by $0.6 million , cost of handsets and accessories was overstated by $2.8 million , impairment, restructuring and other charges, net was overstated by $4.3 million and depreciation was overstated by $1.2 million . These errors were the result of improperly recording expenses for certain non-income based tax credits and restructuring charges for certain transmitter and receiver sites. We evaluated these errors in accordance with the Securities and Exchange Commission's, or the SEC's, authoritative guidance on materiality and the quantification of the effect of prior period misstatements on financial statements, and we determined that the impact of these errors on our prior period consolidated financial statements is immaterial. However, since the correction of these errors in the third quarter of 2018 could have been considered material to our results of operations for the three months ended September 30, 2018 and may be material to our results of operations for the year ending December 31, 2018, we revised our prior period financial statements to correct these errors herein. As a result of the correction of these errors, as of December 31, 2017, prepaid expenses and other increased $9.6 million , intangible assets, net decreased $2.9 million , other assets increased $1.8 million , other long-term liabilities decreased $2.3 million , accumulated deficit decreased $7.9 million , accumulated other comprehensive loss increased $0.3 million and noncontrolling interest increased $3.2 million . For both the three and nine months ended September 30, 2017, the correction of these errors resulted in an $8.9 million decrease in operating loss, loss from continuing operations and net loss, a $2.7 million decrease in net loss attributable to noncontrolling interest and a $6.2 million decrease in net loss attributable to NII Holdings. In addition, for both the three and nine months ended September 30, 2017, the correction of these errors resulted in a $0.09 decrease in both net loss from continuing operations per basic and diluted common share and net loss attributable to NII Holdings per basic and diluted common share. The impact of the correction of these errors on each of these line items in our condensed consolidated financial statements for the three months ended March 31, 2018 and for the three and six months ended June 30, 2018 was immaterial. Minority Investment. 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. In September 2018, ice group completed the sale of its 30% ownership interest in Nextel Holdings by selling the shares of its intermediary holding company, AI Brazil Holdings B.V., to AI Media Holdings (NMT) LLC ( 90% ), or Access Industries, and Bridford Music Holdings B.V. ( 10% ). Since we continue to have a controlling interest in Nextel Brazil, we have consolidated this entity and its subsidiaries. New Accounting Pronouncements. In February 2016, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update, or ASU, No. 2016-02, "Leases," or Accounting Standards Codification 842, which we refer to as ASC 842. ASC 842 replaces existing leasing rules with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. ASC 842 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. In transition, lessees 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. We expect to adopt ASC 842 on January 1, 2019 utilizing the modified retrospective approach. The modified retrospective approach includes a package of optional practical expedients that we plan to elect to apply. Upon adoption, we currently expect to record a material amount of lease liabilities and provide significant new disclosures regarding our leasing activities as required. We are continuing to evaluate the additional effects this standard will have on our consolidated financial statements. Recently Adopted Accounting Pronouncements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which we refer to as ASC 606. This new pronouncement 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. We did not retroactively adjust prior periods. 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 continue to disclose the results under both the new and old standards for the remainder of the first year after adoption. See Note 2 for more information regarding the adoption of ASC 606. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” or ASU 2016-18, which provides guidance regarding cash flow statement classification and presentation of changes in restricted cash. We implemented this new standard on January 1, 2018. As required, we provided a reconciliation of cash and cash equivalents as presented in our condensed consolidated balance sheets to cash, cash equivalents and restricted cash as presented in our condensed consolidated statements of cash flows for all periods presented in Note 4. Reclassifications. We have reclassified some prior period amounts in our condensed consolidated financial statements to conform to our current presentation. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, we implemented ASC 606 using the modified retrospective method. The primary change to our revenue recognition policies relates to contracts with customers where the customer purchases a discounted handset in connection with entering into a contract for telecommunications services. In accordance with ASC 606, we allocate revenue between the handset and the service based on relative standalone selling price, or SSP. We recognize revenue when we satisfy a performance obligation by providing services or transferring control of promised handsets and accessories, which are distinct to a customer. We recognize revenue in an amount that reflects the consideration to which we expect to be entitled for those performance obligations. A description of the principal activities from which Nextel Brazil generates its revenue, as well as the associated policies that govern the way in which we recognize these revenues, is as follows: Service and Other Revenues. Nextel Brazil's wireless service revenues primarily consist of access charges for providing customers with voice, data or messaging services over the contract period. We recognize revenue related to access charges ratably over the contract period. The typical length of our service contracts is 12 months for individual customers and 24 months for corporate customers. We elected the practical expedient to record all revenue net of taxes collected from customers, which are subsequently remitted to governmental authorities. Handset and Accessory Revenues. We recognize handset and accessory revenue when a subscriber takes possession of a device. The transaction price of the handset sold, if any, is billed at the time of sale. Although more than 90% of our subscribers typically purchase services only and acquire a handset separately, the remainder of our subscriber base purchases a handset offered at a discounted price bundled with services. In these types of bundled sales, we allocate a portion of our future service billings to the handset and recognize revenue upon handset delivery at the inception of the contract, which results in a contract asset. We determined that contracts with terms longer than one year that involve the sale of both a handset and related services generally do not include a significant financing component. Significant Judgments and Estimates. Nextel Brazil's subscribers generally enter into service contracts with a commitment period in exchange for discounts on handsets and/or service fees. The penalty applied upon early termination of a contract declines over time in proportion to the remaining commitment period. We concluded that the commitment period should be identical to the contract period since, at any point, the early termination penalty is significant relative to the remaining monthly service fees under the contract. In cases where a contract includes both a handset and accessories, for which we recognize handset and accessory revenue at a point in time, and services, for which we recognize revenue ratably over time, judgment is required to determine the SSP for each distinct performance obligation in order to allocate consideration properly. We use a range of amounts to estimate SSP when we sell each of the products and services separately. Remaining Performance Obligations. As of September 30, 2018, we have $270.6 million of remaining performance obligations under open service contracts. For these service contracts, we expect to recognize $259.8 million in operating revenues in the period from October 1, 2018 through September 30, 2019 and $10.8 million thereafter. Contract Assets and Liabilities. Contract assets primarily relate to the remaining portion of Nextel Brazil's future service billings allocated to handsets and recognized into revenue upon handset delivery at the inception of the contract. As of September 30, 2018 and January 1, 2018, Nextel Brazil had $4.4 million and $5.5 million in total contract assets, respectively, $3.8 million and $4.5 million of which we classified as a component of prepaid expenses and other in our condensed consolidated balance sheets for these periods. We transfer contract assets to receivables when Nextel Brazil's right to bill becomes unconditional. Contract liabilities primarily relate to upfront fees for wireless services for which the services have not yet been provided. As of September 30, 2018 and January 1, 2018, Nextel Brazil had $2.3 million and $1.7 million in total contract liabilities, respectively, substantially all of which we classified as a component of accrued expenses and other in our condensed consolidated balance sheet. The changes to both the contract asset and contract liability balances during the period, which include opening balances amortized into revenue, were not significant. Cost to Obtain Contracts with Customers. We recognize an asset for the incremental costs of obtaining a contract with a customer. These costs include commissions and related costs for sales employees of Nextel Brazil, and commissions payable to our third party distribution channel partners. We amortize these types of costs ratably using the portfolio approach over the estimated customer relationship period, which includes expected future contract renewals. Under the previous accounting standard, we expensed commissions as incurred. As of September 30, 2018 and January 1, 2018, Nextel Brazil had $36.6 million and $42.8 million of deferred costs, respectively, related to expenses required to obtain a contract. Of these total deferred costs, as of September 30, 2018 and January 1, 2018, we recorded $20.7 million and $16.3 million , respectively, as a component of prepaid expenses and other and the remaining $15.9 million and $26.5 million , respectively, as a component of other assets in our condensed consolidated balance sheet. In addition, Nextel Brazil recorded $3.3 million and $11.7 million , respectively, in total commissions expense during the three and nine months ended September 30, 2018 as a component of selling, general and administrative expenses in our condensed consolidated statement of comprehensive loss. Adoption Impact. Following is a comparison of our reported results of operations for the three and nine months ended September 30, 2018 compared to amounts that we would have reported had we not adopted ASC 606 (in thousands): Three Months Ended September 30, 2018 As Reported With ASC 606 Without ASC 606 Impact Operating revenues Service and other revenues $ 138,596 $ 142,753 $ (4,157 ) Handset and accessory revenues 3,141 4,268 (1,127 ) 141,737 147,021 (5,284 ) Operating expenses Cost of service (exclusive of depreciation and amortization included below) 61,634 61,634 — Cost of handsets and accessories 3,452 3,452 — Selling, general and administrative 68,503 72,568 (4,065 ) Impairment, restructuring and other benefits, net (2 ) (2 ) — Depreciation 3,614 3,614 — Amortization 3,191 3,191 — 140,392 144,457 (4,065 ) Operating income $ 1,345 $ 2,564 $ (1,219 ) Net loss $ (49,884 ) $ (48,665 ) $ (1,219 ) Nine Months Ended September 30, 2018 As Reported With ASC 606 Without ASC 606 Impact Operating revenues Service and other revenues $ 465,603 $ 479,541 $ (13,938 ) Handset and accessory revenues 13,383 12,130 1,253 478,986 491,671 (12,685 ) Operating expenses Cost of service (exclusive of depreciation and amortization included below) 220,295 220,295 — Cost of handsets and accessories 19,532 19,532 — Selling, general and administrative 235,474 249,942 (14,468 ) Impairment, restructuring and other charges, net 14,070 14,070 — Depreciation 11,626 11,626 — Amortization 10,229 10,229 — 511,226 525,694 (14,468 ) Operating loss $ (32,240 ) $ (34,023 ) $ 1,783 Net loss $ (191,324 ) $ (193,107 ) $ 1,783 Without the adoption of ASC 606 on January 1, 2018, our basic and diluted net loss from continuing operations per common share would have improved by $0.01 for the three months ended September 30, 2018 and would have been $0.02 lower for the nine months ended September 30, 2018. Components of Transition Adjustment. As of January 1, 2018, the cumulative impact of the implementation of ASC 606 included the recognition of contract assets and liabilities, as well as the capitalization of costs to obtain contracts with customers. In total, these effects resulted in a cumulative adjustment on January 1, 2018 that was comprised of a $21.2 million increase to prepaid expenses and other, a $26.8 million increase to other assets, a $1.1 million increase to accrued expenses and other and a $1.8 million decrease to other long-term liabilities. |
Impairment, Restructuring and O
Impairment, Restructuring and Other Charges | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Impairment, Restructuring and Other Charges | Impairment, Restructuring and Other Charges Long-Lived Asset Impairment. During the first quarter of 2017, we reviewed our Nextel Brazil segment for potential impairment and determined that the carrying value of this segment was not fully recoverable. As a result, during the nine months ended September 30, 2017, we recorded non-cash asset impairment charges of $56.5 million to reduce the carrying values of Nextel Brazil's long-lived assets to their respective fair values and allocated these impairment charges on a pro rata basis between property, plant and equipment and spectrum licenses. Other Asset Impairments. During the three and nine months ended September 30, 2017, Nextel Brazil recognized $3.1 million and $7.0 million in other non-cash asset impairment charges, respectively. The charges recognized in all periods primarily related to the abandonment of certain transmitter and receiver sites that were no longer required in Nextel Brazil's business. Restructuring Charges. During the three and nine months ended September 30, 2018, Nextel Brazil recognized $11.9 million and $37.1 million in restructuring costs, respectively, the majority of which related to future lease costs for approximately 500 iDEN-related transmitter and receiver sites. In addition, during the three months ended September 30, 2018, Nextel Brazil reversed $9.4 million in previously accrued restructuring charges in connection with the determination that approximately 400 transmitter and receiver sites related to Nextel Brazil's radio access network, or RAN, sharing project will continue to be utilized. 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 right to exchange approximately 600 unused transmitter and receiver sites for other sites. During the first quarter of 2018, we identified approximately 250 transmitter and receiver sites that we plan to exchange pursuant to these arrangements, 200 of which were completed during the second quarter of 2018. As a result, Nextel Brazil reversed $ 13.7 million in previously accrued restructuring charges in the first quarter of 2018. During the third quarter of 2018, we identified approximately 110 additional transmitter and receiver sites that we plan to exchange pursuant to these arrangements and reversed $3.6 million in previously accrued restructuring charges in the third quarter of 2018. During the three and nine months ended September 30, 2017, Nextel Brazil recognized $9.2 million and $61.8 million in restructuring costs, respectively, the majority of which related to future lease costs for approximately 1,350 transmitter and receiver sites in low-usage areas in connection with Nextel Brazil's RAN sharing agreement. In addition, during the nine months ended September 30, 2017, Nextel Brazil recognized $4.9 million in severance and other related costs resulting from the separation of certain executive level employees. During the third quarter of 2017, as a result of a change in the scope of Nextel Brazil's RAN sharing implementation, Nextel Brazil determined that RAN sharing would no longer be utilized for approximately 700 transmitter and receiver sites. As a result, Nextel Brazil recognized $29.9 million in restructuring costs, of which $15.0 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. Total impairment, restructuring and other (benefits) charges, net for the three and nine months ended September 30, 2018 and 2017 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Brazil $ (2 ) $ 34,512 $ 13,718 $ 160,143 Corporate — 282 352 825 Total impairment, restructuring and other (benefits) charges, net $ (2 ) $ 34,794 $ 14,070 $ 160,968 As of September 30, 2018, total accrued restructuring charges were as follows (in thousands): Balance, December 31, 2017 $ 107,306 Restructuring charges, net 10,021 Cash payments and other (29,379 ) Foreign currency translation adjustment (16,805 ) Balance, September 30, 2018 $ 71,143 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Financial Statement Information [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Restricted Cash. In November 2016, the FASB issued ASU 2016-18, which requires condensed consolidated statements of cash flows to explain the change in restricted cash and restricted cash equivalents, in addition to the change in cash and cash equivalents as previously required. We adopted this ASU on January 1, 2018. As a result of this adoption, the cash and cash equivalents balances in our condensed consolidated statements of cash flows now include restricted cash of $108.1 million as of September 30, 2018, $111.9 million as of December 31, 2017, $112.3 million as of September 30, 2017 and $164.9 million as of December 31, 2016. Our restricted cash relates to cash held in escrow in connection with the sale of Nextel Mexico and certain judicial deposits of cash in Brazil related to litigation involving tax and other matters. A reconciliation from cash and cash equivalents as presented in our condensed consolidated balance sheets to cash, cash equivalents and restricted cash as reported in our condensed consolidated statements of cash flows is as follows: September 30, December 31, (in thousands) Cash and cash equivalents $ 152,712 $ 193,888 Cash in escrow (included in prepaid expenses and other) 106,071 110,024 Other (included in other assets) 2,021 1,866 Cash, cash equivalents and restricted cash $ 260,804 $ 305,778 Prepaid Expenses and Other. The components of our prepaid expenses and other current assets are as follows: September 30, December 31, (in thousands) Cash in escrow $ 106,071 $ 110,024 Brazil judicial deposits 52,755 43,648 Value-added taxes 22,941 37,191 Cash collateral related to performance bonds 578 50,340 Other prepaid expenses 31,270 14,231 Other current assets 21,150 8,583 $ 234,765 $ 264,017 Property, Plant and Equipment, Net. During the three and nine months ended September 30, 2018 and 2017, we capitalized immaterial amounts of interest. The components of our property, plant and equipment, net are as follows: September 30, December 31, (in thousands) Land $ 404 $ 489 Building and leasehold improvements 629 935 Network equipment, communication towers and network software 95,307 82,493 Software, office equipment, furniture and fixtures and other 26,806 22,498 Less: Accumulated depreciation and amortization (21,497 ) (11,461 ) 101,649 94,954 Construction in progress 19,944 22,308 $ 121,593 $ 117,262 Intangible Assets, Net. Our intangible assets include the following: September 30, 2018 December 31, 2017 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 $ 163,444 $ (9,316 ) $ 154,128 $ 186,983 $ (5,426 ) $ 181,557 Customer relationships 4 12,641 (8,427 ) 4,214 15,300 (5,100 ) 10,200 $ 176,085 $ (17,743 ) $ 158,342 $ 202,283 $ (10,526 ) $ 191,757 Based on the carrying amount of our intangible assets as of September 30, 2018 and current exchange rates, we estimate amortization expense for each of the next five years ending December 31 to be as follows (in thousands): Y ears Estimated Amortization Expense 2018 $ 13,287 2019 9,424 2020 6,615 2021 6,615 2022 6,615 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: September 30, December 31, (in thousands) Brazil judicial deposits $ 99,590 $ 110,758 Cash collateral related to contingencies 49,576 55,027 Other 74,893 54,224 $ 224,059 $ 220,009 Accrued Expenses and Other. The components of our accrued expenses and other are as follows: September 30, December 31, (in thousands) Contingencies $ 64,554 $ 78,006 Network system and information technology expenses 49,077 48,702 Non-income based taxes 36,700 30,044 Payroll related items and commissions 24,016 32,613 License fees 18,013 17,501 Other 72,857 101,263 $ 265,217 $ 308,129 Other Long-Term Liabilities. The components of our other long-term liabilities are as follows: September 30, December 31, (in thousands) Non-current withholding taxes $ 77,870 $ 67,356 Accrued lease terminations and other restructuring charges 61,799 90,128 Conversion option for convertible senior notes 53,503 — Other 78,020 61,106 $ 271,192 $ 218,590 In connection with the issuance of our convertible senior notes in August 2018, we have accounted for the embedded conversion feature separately from the notes and recorded a non-current derivative liability at its fair value on our condensed consolidated balance sheet. See Note 6 for more information regarding our convertible senior notes. Accumulated Other Comprehensive Income (Loss). As of September 30, 2018 and December 31, 2017 , the tax impact on our accumulated other comprehensive loss was not material. In addition, as of September 30, 2018 and December 31, 2017, all of our accumulated other comprehensive loss represented cumulative foreign currency translation adjustment. Supplemental Cash Flow Information. Nine Months Ended September 30, 2018 2017 (in thousands) Capital expenditures Cash paid for capital expenditures, including capitalized interest on property, plant and equipment $ 45,357 $ 52,068 Change in capital expenditures accrued and unpaid or financed, including interest capitalized (4,669 ) (21,968 ) $ 40,688 $ 30,100 We did not have any significant non-cash investing or financing activities during the nine months ended September 30, 2018 and 2017. Revenue-Based Taxes. Prior to the implementation of ASC 606, we recorded certain revenue-based taxes on a gross basis. For the three and nine months ended September 30, 2017, we recognized $6.0 million and $23.1 million , respectively, in revenue-based taxes as a component of both service and other revenues and selling, general and administrative expenses in our condensed consolidated statement of comprehensive loss. As a result of the adoption of ASC 606, we now record all revenue net of taxes collected from customers. If we had not implemented ASC 606 on January 1, 2018, we would have recognized an additional $3.4 million and $12.1 million , respectively, in revenue-based taxes as a component of both service and other revenues and selling, general and administrative expenses in our condensed consolidated statement of comprehensive loss during the three and nine months ended September 30, 2018. Diluted Net Loss Per Common Share. As presented for the three and nine months ended September 30, 2018 and 2017, our calculation of diluted net loss from continuing operations per common share is based on the weighted average number of common shares outstanding during those periods and does not include other potential common shares, including common shares resulting from the potential conversion of our convertible senior notes, common shares issuable upon the potential exercise of stock options under our stock-based employee compensation plans or restricted common shares issued under those plans since their effect would have been antidilutive. For the three and nine months ended September 30, 2018, we did not include 18.5 million common shares related to the potential conversion of our convertible senior notes because their effect would have been antidilutive. For the same periods, we did not include 3.5 million and 3.4 million stock options, respectively, in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. In addition, for the three and nine months ended September 30, 2018, we did not include 1.4 million and 0.7 million restricted common shares, respectively, in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. For the three and nine months ended September 30, 2017, we did not include 3.7 million and 3.5 million stock options, respectively, in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. In addition, for the three and nine months ended September 30, 2017, we did not include 0.1 million and 0.3 million restricted common shares, respectively, in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations 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. In 2016, we paid $4.0 million , plus interest, out of escrow to settle an indemnification claim, and in July 2018, we utilized $4.0 million of cash held in escrow to settle tax audits for the years 2010 and 2011 discussed below. As of September 30, 2018, $73.5 million of the cash held in escrow has been released to us and $106.1 million , which includes interest, 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. 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 tax audit of Nextel Mexico’s income tax return for 2010 and $36.9 million related to the tax 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. During July 2018, the tax audits related to Nextel Mexico's income tax returns for the years 2010 and 2011 were finalized, and we filed amended tax returns. We settled the tax liabilities associated with these tax audits utilizing existing tax credits, with the exception of $4.0 million that we paid utilizing cash held in escrow. As a result, of the $72.4 million in combined claims relating to the tax audits of the years 2010 and 2011, we have requested that New Cingular Wireless agree to the release of $68.3 million from escrow. New Cingular Wireless has disagreed with our interpretation of the escrow and purchase agreements related to the timing of release requirements for escrowed funds. This difference of interpretation could result in a delay of the release of the remaining amount of cash in escrow. 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. In addition, New Cingular Wireless has indicated that it may continue to make additional claims for indemnification related to these open audits in the future. There can be no assurance as to the outcome of the foregoing tax audits or indemnity claims. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt [Abstract] | |
Debt | Debt The components of our debt are as follows: September 30, 2018 December 31, 2017 (in thousands) Brazil equipment financing facility $ 238,669 $ 242,883 Brazil bank loans 164,597 200,567 Brazil spectrum financing 100,794 122,044 Convertible senior notes 70,702 — Brazil capital lease and tower financing obligations 70,325 90,213 Total debt 645,087 655,707 Less: current portion (21,755 ) (7,990 ) $ 623,332 $ 647,717 Convertible Senior Notes. In August 2018, we privately placed $100.0 million aggregate principal amount of 4.25% convertible senior notes due 2023, which we refer to as the convertible senior notes. We also granted the initial purchaser an option to purchase up to an additional $15.0 million principal amount of convertible senior notes, which was exercised in full. As a result, we issued a total of $115.0 million principal amount of convertible senior notes at par for total gross proceeds of $115.0 million . In connection with this issuance, we incurred total issuance costs of $5.2 million , $1.9 million of which we allocated to the conversion option and expensed immediately and the remainder of which we recorded as deferred financing costs. We are amortizing the $3.3 million in deferred financing costs into interest expense over the term of the convertible senior notes. Our convertible senior notes are senior unsecured obligations, will rank equal in right of payment with all of our existing and future unsecured and unsubordinated debt and will be effectively junior in right of payment to all of our existing and future secured debt to the extent of the assets securing that debt. With certain exceptions, none of our subsidiaries will guarantee the convertible senior notes. As a result, the convertible senior notes will be structurally subordinated to all existing and future liabilities and obligations of our subsidiaries, except to the extent of any such guarantee. The convertible senior notes bear interest at a rate of 4.25% per year on the principal amount of the notes, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on February 15, 2019. The convertible senior notes mature on August 15, 2023, unless earlier converted or repurchased, when the entire principal balance of $115.0 million will be due. In addition, and subject to specified exceptions, upon the occurrence of a fundamental change, the noteholders have the right to require us to repurchase the notes for cash at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. The convertible senior notes are convertible into shares of our common stock at an initial conversion rate of 160.9658 shares per $1,000 principal amount of notes, or 18,511,067 aggregate common shares, representing an initial conversion price of $6.21 per share, subject to adjustment in certain situations. The convertible senior notes are convertible, subject to adjustment, prior to the close of business on the business day immediately preceding February 15, 2023 only under the following circumstances: • during any calendar quarter commencing after September 30, 2018 if the last reported sale price of our common stock is greater than or equal to 130% of the conversion price of $6.21 per share for at least 20 trading days during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; or • upon the occurrence of specified corporate events. On or after February 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, noteholders may convert their notes at any time, regardless of the aforementioned circumstances. We have the option to satisfy the conversion of the convertible senior notes in shares of our common stock, in cash or a combination of both. If certain corporate events occur prior to August 15, 2023, or if we deliver a notice of redemption, we will increase the conversion rate for a noteholder who elects to convert its notes in connection with such a corporate event. The conversion feature embedded in the convertible senior notes meets the criteria of an embedded derivative in accordance with the FASB's authoritative guidance for derivatives. As a result, as of September 30, 2018, we have separated the value of the conversion feature from the notes and recorded the derivative liability at its fair value on our condensed consolidated balance sheet. As of September 30, 2018, we recorded the $53.5 million fair value of the derivative liability as a component of other long-term liabilities in our condensed consolidated balance sheet. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial Instruments. Available-for-Sale Securities. As of September 30, 2018 and December 31, 2017 , available-for-sale securities held by Nextel Brazil included $48.4 million and $16.7 million , respectively, in investment funds. These funds invest primarily in Brazilian government bonds and long-term bank certificates of deposit. During the three and nine months ended September 30, 2018 and 2017, 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 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: September 30, 2018 December 31, 2017 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (in thousands) Brazil equipment financing $ 238,669 $ 233,533 $ 242,883 $ 237,958 Brazil bank loans and other 164,597 100,358 200,567 144,312 Brazil spectrum financing 100,794 114,247 122,044 128,225 Convertible senior notes 70,702 73,296 — — $ 574,762 $ 521,434 $ 565,494 $ 510,495 We estimated the fair value of our convertible senior notes, as well as Nextel Brazil's bank loans, equipment financing and spectrum financing 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 these fair value measurements to be Level 3 in the fair value hierarchy. Conversion Option for Convertible Senior Notes. We estimated the fair value of the conversion option embedded in the convertible senior notes using a binomial lattice model with daily nodes from the valuation date to the maturity date of the convertible senior notes. This model considered stock price, risk-free rates, credit spreads, dividend yields and expected volatility. We record gains or losses related to changes in the fair value of the conversion option derivative liability during the period. During the three months ended September 30, 2018, we recorded $11.7 million as a component of other expense, net, in our condensed consolidated statement of comprehensive loss related to the change in the fair value of the conversion option. We consider this fair value measurement to be Level 3 in the fair value hierarchy. Other Financial Instruments. The carrying values of cash and cash equivalents, accounts receivable and accounts payable contained in our condensed consolidated balance sheets approximate their fair values due to the short-term nature of these instruments. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Brazil Roaming and RAN Sharing Commitments. 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 its roaming traffic. Concurrently, Nextel Brazil entered into a 10 -year radio access network, or 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. These agreements require Nextel Brazil to meet certain 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. As of September 30, 2018, Nextel Brazil had 218 million Brazilian reais, or $54.5 million based on current foreign currency exchange rates, in remaining commitments related to its roaming agreement and 271 million Brazilian reais, or $67.6 million based on current foreign currency exchange rates, in remaining commitments related to its RAN sharing agreement. 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. In connection with these petitions, Nextel Brazil is regularly required to make a judicial guarantee through a deposit of cash to cover the amount in dispute in order to file and/or appeal claims. As of September 30, 2018 and December 31, 2017, Nextel Brazil also had contingencies related to certain consumer, contract and labor-related matters, some of which are secured by judicial guarantees. Even in cases where there is no probable loss, Nextel Brazil may in the future be subject to litigation involving tax and other matters requiring material judicial deposits of cash that will not be released until the pending matter is resolved. As of September 30, 2018 and December 31, 2017 , Nextel Brazil had accrued liabilities of $78.3 million and $81.2 million , respectively, related to contingencies, of which $7.5 million and $7.4 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 $730.0 million as of September 30, 2018 . 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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. In 2017, w e maintained 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 such as the recent history of cumulative losses and the projected losses for the remainder of 2018 and subsequent years. We maintained this same valuation allowance position through the third quarter of 2018 . |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting 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 operating segment. Nextel Brazil Corporate Consolidated (in thousands) Three Months Ended September 30, 2018 Operating revenues $ 141,737 $ — $ 141,737 Segment earnings (losses) $ 12,749 $ (4,601 ) $ 8,148 Less: Impairment, restructuring and other benefits, net 2 Depreciation and amortization (6,805 ) Foreign currency transaction losses, net (12,238 ) Interest expense and other, net (38,828 ) Loss from continuing operations before income tax benefit $ (49,721 ) Capital expenditures $ 17,583 $ — $ 17,583 Three Months Ended September 30, 2017 Operating revenues $ 205,399 $ 24 $ 205,423 Segment losses $ (27,266 ) $ (6,281 ) $ (33,547 ) Less: Impairment, restructuring and other charges, net (34,794 ) Depreciation and amortization (6,091 ) Foreign currency transaction gains, net 14,174 Interest expense and other, net (25,230 ) Loss from continuing operations before income tax benefit $ (85,488 ) Capital expenditures $ 11,661 $ — $ 11,661 Nine Months Ended September 30, 2018 Operating revenues $ 478,964 $ 22 $ 478,986 Segment earnings (losses) $ 16,436 $ (12,751 ) $ 3,685 Less: Impairment, restructuring and other charges, net (14,070 ) Depreciation and amortization (21,855 ) Foreign currency transaction losses, net (60,092 ) Interest expense and other, net (96,046 ) Loss from continuing operations before income tax benefit $ (188,378 ) Capital expenditures $ 40,688 $ — $ 40,688 Nine Months Ended September 30, 2017 Operating revenues $ 681,429 $ 83 $ 681,512 Segment losses $ (11,813 ) $ (21,980 ) $ (33,793 ) Less: Impairment, restructuring and other charges, net (160,968 ) Depreciation and amortization (28,451 ) Foreign currency transaction gains, net 12,197 Interest expense and other, net (60,393 ) Loss from continuing operations before income tax benefit $ (271,408 ) Capital expenditures $ 30,100 $ — $ 30,100 September 30, 2018 Identifiable assets $ 799,167 $ 240,421 $ 1,039,588 December 31, 2017 Identifiable assets $ 965,919 $ 147,603 $ 1,113,522 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New and Recently Adopted Accounting Pronouncements | New Accounting Pronouncements. In February 2016, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update, or ASU, No. 2016-02, "Leases," or Accounting Standards Codification 842, which we refer to as ASC 842. ASC 842 replaces existing leasing rules with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. ASC 842 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. In transition, lessees 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. We expect to adopt ASC 842 on January 1, 2019 utilizing the modified retrospective approach. The modified retrospective approach includes a package of optional practical expedients that we plan to elect to apply. Upon adoption, we currently expect to record a material amount of lease liabilities and provide significant new disclosures regarding our leasing activities as required. We are continuing to evaluate the additional effects this standard will have on our consolidated financial statements. Recently Adopted Accounting Pronouncements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which we refer to as ASC 606. This new pronouncement 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. We did not retroactively adjust prior periods. 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 continue to disclose the results under both the new and old standards for the remainder of the first year after adoption. See Note 2 for more information regarding the adoption of ASC 606. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” or ASU 2016-18, which provides guidance regarding cash flow statement classification and presentation of changes in restricted cash. We implemented this new standard on January 1, 2018. As required, we provided a reconciliation of cash and cash equivalents as presented in our condensed consolidated balance sheets to cash, cash equivalents and restricted cash as presented in our condensed consolidated statements of cash flows for all periods presented in Note 4. Reclassifications. We have reclassified some prior period amounts in our condensed consolidated financial statements to conform to our current presentation. |
Reclassifications | Reclassifications. We have reclassified some prior period amounts in our condensed consolidated financial statements to conform to our current presentation. |
Revenue Recognition | Revenue Recognition On January 1, 2018, we implemented ASC 606 using the modified retrospective method. The primary change to our revenue recognition policies relates to contracts with customers where the customer purchases a discounted handset in connection with entering into a contract for telecommunications services. In accordance with ASC 606, we allocate revenue between the handset and the service based on relative standalone selling price, or SSP. We recognize revenue when we satisfy a performance obligation by providing services or transferring control of promised handsets and accessories, which are distinct to a customer. We recognize revenue in an amount that reflects the consideration to which we expect to be entitled for those performance obligations. A description of the principal activities from which Nextel Brazil generates its revenue, as well as the associated policies that govern the way in which we recognize these revenues, is as follows: Service and Other Revenues. Nextel Brazil's wireless service revenues primarily consist of access charges for providing customers with voice, data or messaging services over the contract period. We recognize revenue related to access charges ratably over the contract period. The typical length of our service contracts is 12 months for individual customers and 24 months for corporate customers. We elected the practical expedient to record all revenue net of taxes collected from customers, which are subsequently remitted to governmental authorities. Handset and Accessory Revenues. We recognize handset and accessory revenue when a subscriber takes possession of a device. The transaction price of the handset sold, if any, is billed at the time of sale. Although more than 90% of our subscribers typically purchase services only and acquire a handset separately, the remainder of our subscriber base purchases a handset offered at a discounted price bundled with services. In these types of bundled sales, we allocate a portion of our future service billings to the handset and recognize revenue upon handset delivery at the inception of the contract, which results in a contract asset. We determined that contracts with terms longer than one year that involve the sale of both a handset and related services generally do not include a significant financing component. Significant Judgments and Estimates. Nextel Brazil's subscribers generally enter into service contracts with a commitment period in exchange for discounts on handsets and/or service fees. The penalty applied upon early termination of a contract declines over time in proportion to the remaining commitment period. We concluded that the commitment period should be identical to the contract period since, at any point, the early termination penalty is significant relative to the remaining monthly service fees under the contract. In cases where a contract includes both a handset and accessories, for which we recognize handset and accessory revenue at a point in time, and services, for which we recognize revenue ratably over time, judgment is required to determine the SSP for each distinct performance obligation in order to allocate consideration properly. We use a range of amounts to estimate SSP when we sell each of the products and services separately. Remaining Performance Obligations. As of September 30, 2018, we have $270.6 million of remaining performance obligations under open service contracts. For these service contracts, we expect to recognize $259.8 million in operating revenues in the period from October 1, 2018 through September 30, 2019 and $10.8 million thereafter. Contract Assets and Liabilities. Contract assets primarily relate to the remaining portion of Nextel Brazil's future service billings allocated to handsets and recognized into revenue upon handset delivery at the inception of the contract. As of September 30, 2018 and January 1, 2018, Nextel Brazil had $4.4 million and $5.5 million in total contract assets, respectively, $3.8 million and $4.5 million of which we classified as a component of prepaid expenses and other in our condensed consolidated balance sheets for these periods. We transfer contract assets to receivables when Nextel Brazil's right to bill becomes unconditional. Contract liabilities primarily relate to upfront fees for wireless services for which the services have not yet been provided. As of September 30, 2018 and January 1, 2018, Nextel Brazil had $2.3 million and $1.7 million in total contract liabilities, respectively, substantially all of which we classified as a component of accrued expenses and other in our condensed consolidated balance sheet. The changes to both the contract asset and contract liability balances during the period, which include opening balances amortized into revenue, were not significant. Cost to Obtain Contracts with Customers. We recognize an asset for the incremental costs of obtaining a contract with a customer. These costs include commissions and related costs for sales employees of Nextel Brazil, and commissions payable to our third party distribution channel partners. We amortize these types of costs ratably using the portfolio approach over the estimated customer relationship period, which includes expected future contract renewals. Under the previous accounting standard, we expensed commissions as incurred. As of September 30, 2018 and January 1, 2018, Nextel Brazil had $36.6 million and $42.8 million of deferred costs, respectively, related to expenses required to obtain a contract. Of these total deferred costs, as of September 30, 2018 and January 1, 2018, we recorded $20.7 million and $16.3 million , respectively, as a component of prepaid expenses and other and the remaining $15.9 million and $26.5 million , respectively, as a component of other assets in our condensed consolidated balance sheet. In addition, Nextel Brazil recorded $3.3 million and $11.7 million , respectively, in total commissions expense during the three and nine months ended September 30, 2018 as a component of selling, general and administrative expenses in our condensed consolidated statement of comprehensive loss. Adoption Impact. Following is a comparison of our reported results of operations for the three and nine months ended September 30, 2018 compared to amounts that we would have reported had we not adopted ASC 606 (in thousands): Three Months Ended September 30, 2018 As Reported With ASC 606 Without ASC 606 Impact Operating revenues Service and other revenues $ 138,596 $ 142,753 $ (4,157 ) Handset and accessory revenues 3,141 4,268 (1,127 ) 141,737 147,021 (5,284 ) Operating expenses Cost of service (exclusive of depreciation and amortization included below) 61,634 61,634 — Cost of handsets and accessories 3,452 3,452 — Selling, general and administrative 68,503 72,568 (4,065 ) Impairment, restructuring and other benefits, net (2 ) (2 ) — Depreciation 3,614 3,614 — Amortization 3,191 3,191 — 140,392 144,457 (4,065 ) Operating income $ 1,345 $ 2,564 $ (1,219 ) Net loss $ (49,884 ) $ (48,665 ) $ (1,219 ) Nine Months Ended September 30, 2018 As Reported With ASC 606 Without ASC 606 Impact Operating revenues Service and other revenues $ 465,603 $ 479,541 $ (13,938 ) Handset and accessory revenues 13,383 12,130 1,253 478,986 491,671 (12,685 ) Operating expenses Cost of service (exclusive of depreciation and amortization included below) 220,295 220,295 — Cost of handsets and accessories 19,532 19,532 — Selling, general and administrative 235,474 249,942 (14,468 ) Impairment, restructuring and other charges, net 14,070 14,070 — Depreciation 11,626 11,626 — Amortization 10,229 10,229 — 511,226 525,694 (14,468 ) Operating loss $ (32,240 ) $ (34,023 ) $ 1,783 Net loss $ (191,324 ) $ (193,107 ) $ 1,783 Without the adoption of ASC 606 on January 1, 2018, our basic and diluted net loss from continuing operations per common share would have improved by $0.01 for the three months ended September 30, 2018 and would have been $0.02 lower for the nine months ended September 30, 2018. Components of Transition Adjustment. As of January 1, 2018, the cumulative impact of the implementation of ASC 606 included the recognition of contract assets and liabilities, as well as the capitalization of costs to obtain contracts with customers. In total, these effects resulted in a cumulative adjustment on January 1, 2018 that was comprised of a $21.2 million increase to prepaid expenses and other, a $26.8 million increase to other assets, a $1.1 million increase to accrued expenses and other and a $1.8 million decrease to other long-term liabilities. |
Revenue-Based Taxes | Revenue-Based Taxes. Prior to the implementation of ASC 606, we recorded certain revenue-based taxes on a gross basis. |
Diluted Net Loss Per Common Share | Diluted Net Loss Per Common Share. As presented for the three and nine months ended September 30, 2018 and 2017, our calculation of diluted net loss from continuing operations per common share is based on the weighted average number of common shares outstanding during those periods and does not include other potential common shares, including common shares resulting from the potential conversion of our convertible senior notes, common shares issuable upon the potential exercise of stock options under our stock-based employee compensation plans or restricted common shares issued under those plans since their effect would have been antidilutive. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Adoption Impact | Following is a comparison of our reported results of operations for the three and nine months ended September 30, 2018 compared to amounts that we would have reported had we not adopted ASC 606 (in thousands): Three Months Ended September 30, 2018 As Reported With ASC 606 Without ASC 606 Impact Operating revenues Service and other revenues $ 138,596 $ 142,753 $ (4,157 ) Handset and accessory revenues 3,141 4,268 (1,127 ) 141,737 147,021 (5,284 ) Operating expenses Cost of service (exclusive of depreciation and amortization included below) 61,634 61,634 — Cost of handsets and accessories 3,452 3,452 — Selling, general and administrative 68,503 72,568 (4,065 ) Impairment, restructuring and other benefits, net (2 ) (2 ) — Depreciation 3,614 3,614 — Amortization 3,191 3,191 — 140,392 144,457 (4,065 ) Operating income $ 1,345 $ 2,564 $ (1,219 ) Net loss $ (49,884 ) $ (48,665 ) $ (1,219 ) Nine Months Ended September 30, 2018 As Reported With ASC 606 Without ASC 606 Impact Operating revenues Service and other revenues $ 465,603 $ 479,541 $ (13,938 ) Handset and accessory revenues 13,383 12,130 1,253 478,986 491,671 (12,685 ) Operating expenses Cost of service (exclusive of depreciation and amortization included below) 220,295 220,295 — Cost of handsets and accessories 19,532 19,532 — Selling, general and administrative 235,474 249,942 (14,468 ) Impairment, restructuring and other charges, net 14,070 14,070 — Depreciation 11,626 11,626 — Amortization 10,229 10,229 — 511,226 525,694 (14,468 ) Operating loss $ (32,240 ) $ (34,023 ) $ 1,783 Net loss $ (191,324 ) $ (193,107 ) $ 1,783 |
Impairment, Restructuring and_2
Impairment, Restructuring and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Total Impairment and Restructuring Charges | Total impairment, restructuring and other (benefits) charges, net for the three and nine months ended September 30, 2018 and 2017 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Brazil $ (2 ) $ 34,512 $ 13,718 $ 160,143 Corporate — 282 352 825 Total impairment, restructuring and other (benefits) charges, net $ (2 ) $ 34,794 $ 14,070 $ 160,968 |
Schedule of Total Accrued Restructuring Charges | As of September 30, 2018, total accrued restructuring charges were as follows (in thousands): Balance, December 31, 2017 $ 107,306 Restructuring charges, net 10,021 Cash payments and other (29,379 ) Foreign currency translation adjustment (16,805 ) Balance, September 30, 2018 $ 71,143 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Financial Statement Information [Abstract] | |
Cash and Cash Equivalents | A reconciliation from cash and cash equivalents as presented in our condensed consolidated balance sheets to cash, cash equivalents and restricted cash as reported in our condensed consolidated statements of cash flows is as follows: September 30, December 31, (in thousands) Cash and cash equivalents $ 152,712 $ 193,888 Cash in escrow (included in prepaid expenses and other) 106,071 110,024 Other (included in other assets) 2,021 1,866 Cash, cash equivalents and restricted cash $ 260,804 $ 305,778 |
Restricted Cash | A reconciliation from cash and cash equivalents as presented in our condensed consolidated balance sheets to cash, cash equivalents and restricted cash as reported in our condensed consolidated statements of cash flows is as follows: September 30, December 31, (in thousands) Cash and cash equivalents $ 152,712 $ 193,888 Cash in escrow (included in prepaid expenses and other) 106,071 110,024 Other (included in other assets) 2,021 1,866 Cash, cash equivalents and restricted cash $ 260,804 $ 305,778 |
Schedule of Prepaid Expenses and Other | The components of our prepaid expenses and other current assets are as follows: September 30, December 31, (in thousands) Cash in escrow $ 106,071 $ 110,024 Brazil judicial deposits 52,755 43,648 Value-added taxes 22,941 37,191 Cash collateral related to performance bonds 578 50,340 Other prepaid expenses 31,270 14,231 Other current assets 21,150 8,583 $ 234,765 $ 264,017 |
Schedule of Property, Plant and Equipment, Net | The components of our property, plant and equipment, net are as follows: September 30, December 31, (in thousands) Land $ 404 $ 489 Building and leasehold improvements 629 935 Network equipment, communication towers and network software 95,307 82,493 Software, office equipment, furniture and fixtures and other 26,806 22,498 Less: Accumulated depreciation and amortization (21,497 ) (11,461 ) 101,649 94,954 Construction in progress 19,944 22,308 $ 121,593 $ 117,262 |
Schedule of Intangible Assets, Net | Our intangible assets include the following: September 30, 2018 December 31, 2017 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 $ 163,444 $ (9,316 ) $ 154,128 $ 186,983 $ (5,426 ) $ 181,557 Customer relationships 4 12,641 (8,427 ) 4,214 15,300 (5,100 ) 10,200 $ 176,085 $ (17,743 ) $ 158,342 $ 202,283 $ (10,526 ) $ 191,757 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the carrying amount of our intangible assets as of September 30, 2018 and current exchange rates, we estimate amortization expense for each of the next five years ending December 31 to be as follows (in thousands): Y ears Estimated Amortization Expense 2018 $ 13,287 2019 9,424 2020 6,615 2021 6,615 2022 6,615 |
Schedule of Other Assets | The components of our other long-term assets are as follows: September 30, December 31, (in thousands) Brazil judicial deposits $ 99,590 $ 110,758 Cash collateral related to contingencies 49,576 55,027 Other 74,893 54,224 $ 224,059 $ 220,009 |
Schedule of Accrued Expenses and Other | The components of our accrued expenses and other are as follows: September 30, December 31, (in thousands) Contingencies $ 64,554 $ 78,006 Network system and information technology expenses 49,077 48,702 Non-income based taxes 36,700 30,044 Payroll related items and commissions 24,016 32,613 License fees 18,013 17,501 Other 72,857 101,263 $ 265,217 $ 308,129 |
Schedule of Other Long-term Liabilities | The components of our other long-term liabilities are as follows: September 30, December 31, (in thousands) Non-current withholding taxes $ 77,870 $ 67,356 Accrued lease terminations and other restructuring charges 61,799 90,128 Conversion option for convertible senior notes 53,503 — Other 78,020 61,106 $ 271,192 $ 218,590 |
Schedule of Supplemental Cash Flow Information | Nine Months Ended September 30, 2018 2017 (in thousands) Capital expenditures Cash paid for capital expenditures, including capitalized interest on property, plant and equipment $ 45,357 $ 52,068 Change in capital expenditures accrued and unpaid or financed, including interest capitalized (4,669 ) (21,968 ) $ 40,688 $ 30,100 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt [Abstract] | |
Summary of Debt | The components of our debt are as follows: September 30, 2018 December 31, 2017 (in thousands) Brazil equipment financing facility $ 238,669 $ 242,883 Brazil bank loans 164,597 200,567 Brazil spectrum financing 100,794 122,044 Convertible senior notes 70,702 — Brazil capital lease and tower financing obligations 70,325 90,213 Total debt 645,087 655,707 Less: current portion (21,755 ) (7,990 ) $ 623,332 $ 647,717 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amounts and estimated fair values of debt | The carrying amounts and estimated fair values of our debt instruments are as follows: September 30, 2018 December 31, 2017 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (in thousands) Brazil equipment financing $ 238,669 $ 233,533 $ 242,883 $ 237,958 Brazil bank loans and other 164,597 100,358 200,567 144,312 Brazil spectrum financing 100,794 114,247 122,044 128,225 Convertible senior notes 70,702 73,296 — — $ 574,762 $ 521,434 $ 565,494 $ 510,495 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Nextel Brazil Corporate Consolidated (in thousands) Three Months Ended September 30, 2018 Operating revenues $ 141,737 $ — $ 141,737 Segment earnings (losses) $ 12,749 $ (4,601 ) $ 8,148 Less: Impairment, restructuring and other benefits, net 2 Depreciation and amortization (6,805 ) Foreign currency transaction losses, net (12,238 ) Interest expense and other, net (38,828 ) Loss from continuing operations before income tax benefit $ (49,721 ) Capital expenditures $ 17,583 $ — $ 17,583 Three Months Ended September 30, 2017 Operating revenues $ 205,399 $ 24 $ 205,423 Segment losses $ (27,266 ) $ (6,281 ) $ (33,547 ) Less: Impairment, restructuring and other charges, net (34,794 ) Depreciation and amortization (6,091 ) Foreign currency transaction gains, net 14,174 Interest expense and other, net (25,230 ) Loss from continuing operations before income tax benefit $ (85,488 ) Capital expenditures $ 11,661 $ — $ 11,661 Nine Months Ended September 30, 2018 Operating revenues $ 478,964 $ 22 $ 478,986 Segment earnings (losses) $ 16,436 $ (12,751 ) $ 3,685 Less: Impairment, restructuring and other charges, net (14,070 ) Depreciation and amortization (21,855 ) Foreign currency transaction losses, net (60,092 ) Interest expense and other, net (96,046 ) Loss from continuing operations before income tax benefit $ (188,378 ) Capital expenditures $ 40,688 $ — $ 40,688 Nine Months Ended September 30, 2017 Operating revenues $ 681,429 $ 83 $ 681,512 Segment losses $ (11,813 ) $ (21,980 ) $ (33,793 ) Less: Impairment, restructuring and other charges, net (160,968 ) Depreciation and amortization (28,451 ) Foreign currency transaction gains, net 12,197 Interest expense and other, net (60,393 ) Loss from continuing operations before income tax benefit $ (271,408 ) Capital expenditures $ 30,100 $ — $ 30,100 September 30, 2018 Identifiable assets $ 799,167 $ 240,421 $ 1,039,588 December 31, 2017 Identifiable assets $ 965,919 $ 147,603 $ 1,113,522 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Jul. 20, 2017 | Jun. 05, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Operating revenues | $ 141,737 | $ 205,423 | $ 478,986 | $ 681,512 | ||||
Cost of handsets and accessories | 3,452 | 8,736 | 19,532 | 30,443 | ||||
Impairment and restructuring charges | (2) | 34,794 | 14,070 | 160,968 | ||||
Depreciation | 3,614 | 2,428 | 11,626 | 17,031 | ||||
Prepaid expenses and other | $ 234,765 | 234,765 | 234,765 | $ 264,017 | ||||
Intangible assets, net | 158,342 | 158,342 | 158,342 | 191,757 | ||||
Other assets | 224,059 | 224,059 | 224,059 | 220,009 | ||||
Other long-term liabilities | 271,192 | 271,192 | 271,192 | 218,590 | ||||
Accumulated deficit | 2,237,135 | 2,237,135 | 2,237,135 | 2,127,876 | ||||
Accumulated other comprehensive loss | 1,813 | 1,813 | 1,813 | 47,266 | ||||
Noncontrolling interest | $ (89,243) | (89,243) | (89,243) | (75,445) | ||||
Operating loss | (1,345) | 74,432 | 32,240 | 223,212 | ||||
Net loss from continuing operations | 49,721 | 85,488 | 188,378 | 265,630 | ||||
Net loss | 49,884 | 85,580 | 191,324 | 263,063 | ||||
Net loss attributable to noncontrolling interest | 8,866 | 24,622 | 47,965 | 24,622 | ||||
Net loss attributable to NII Holdings | $ 41,018 | $ 60,958 | $ 143,359 | $ 238,441 | ||||
Net loss from continuing operations per common share, basic and diluted (in dollars per share) | $ (0.50) | $ (0.85) | $ (1.88) | $ (2.65) | ||||
Net loss attributable to NII Holdings per common share, basic and diluted (in dollars per share) | $ (0.50) | $ (0.85) | $ (1.91) | $ (2.62) | ||||
AINMT | Plan | ||||||||
Additional interests (as percent) | 30.00% | |||||||
AINMT | Nextel Holdings | ||||||||
Ownership percentage (as percent) | 30.00% | |||||||
Ownership sold (as percent) | 30.00% | |||||||
Nextel Holdings | ||||||||
Consideration received for investment | $ 50,000 | |||||||
Number of shares issued (in shares) | 116.6 | |||||||
Nextel Holdings | Plan | ||||||||
Additional consideration received on investment | $ 150,000 | |||||||
Nextel Holdings | AINMT | ||||||||
Number of shares issued (in shares) | 50 | |||||||
AI Media Holdings (NMT) LLC | AI Brazil Holdings B.V. | ||||||||
Ownership by parent (as percent) | 90.00% | 90.00% | 90.00% | |||||
Bridford Music Holdings B.V. | AI Brazil Holdings B.V. | ||||||||
Ownership by noncontrolling interest (as percent) | 10.00% | 10.00% | 10.00% | |||||
Service and other revenues | ||||||||
Operating revenues | $ 138,596 | $ 200,874 | $ 465,603 | $ 664,446 | ||||
Restatement Adjustment | ||||||||
Cost of handsets and accessories | (2,800) | (2,800) | ||||||
Impairment and restructuring charges | (4,300) | (4,300) | ||||||
Depreciation | (1,200) | (1,200) | ||||||
Prepaid expenses and other | 9,600 | |||||||
Intangible assets, net | (2,900) | |||||||
Other assets | 1,800 | |||||||
Other long-term liabilities | (2,300) | |||||||
Accumulated deficit | (7,900) | |||||||
Accumulated other comprehensive loss | 300 | |||||||
Noncontrolling interest | $ 3,200 | |||||||
Operating loss | (8,900) | (8,900) | ||||||
Net loss from continuing operations | (8,900) | (8,900) | ||||||
Net loss | (8,900) | (8,900) | ||||||
Net loss attributable to noncontrolling interest | (2,700) | (2,700) | ||||||
Net loss attributable to NII Holdings | $ (6,200) | $ (6,200) | ||||||
Net loss from continuing operations per common share, basic and diluted (in dollars per share) | $ (0.09) | $ (0.09) | ||||||
Net loss attributable to NII Holdings per common share, basic and diluted (in dollars per share) | $ (0.09) | $ (0.09) | ||||||
Restatement Adjustment | Service and other revenues | ||||||||
Operating revenues | $ 600 | $ 600 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Contract period | 12 months for individual customers and 24 months for corporate customers | |||||
Percent of customers with services contract only (as percent) | 90.00% | |||||
Basic and diluted (in dollars per share) | $ (0.50) | $ (0.85) | $ (1.91) | $ (2.62) | ||
Prepaid expenses | $ 234,765 | $ 234,765 | $ 264,017 | |||
Other assets | 224,059 | 224,059 | 220,009 | |||
Accrued expenses and other | 265,217 | 265,217 | 308,129 | |||
Other long-term liabilities | $ (271,192) | $ (271,192) | $ (218,590) | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Basic and diluted (in dollars per share) | $ 0.01 | $ 0.02 | ||||
Prepaid expenses | $ 21,200 | |||||
Other assets | 26,800 | |||||
Accrued expenses and other | 1,100 | |||||
Other long-term liabilities | 1,800 | |||||
Nextel Brazil | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Contract assets | $ 4,400 | $ 4,400 | 5,500 | |||
Contract liabilities | 2,300 | 2,300 | 1,700 | |||
Capitalized contract cost | 36,600 | 36,600 | 42,800 | |||
Nextel Brazil | Prepaid Expenses and Other Current Assets | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Contract assets | 3,800 | 3,800 | 4,500 | |||
Capitalized contract cost | 20,700 | 20,700 | 16,300 | |||
Nextel Brazil | Other Assets | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Capitalized contract cost | 15,900 | 15,900 | $ 26,500 | |||
Nextel Brazil | Selling, General and Administrative Expenses | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Commissions expense | $ 3,300 | $ 11,700 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (Details) $ in Millions | Sep. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2010-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 259.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 10.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 270.6 |
Revenue Recognition - Adoption
Revenue Recognition - Adoption Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Operating revenues | $ 141,737 | $ 205,423 | $ 478,986 | $ 681,512 |
Operating expenses | ||||
Cost of service (exclusive of depreciation and amortization included below) | 61,634 | 91,230 | 220,295 | 281,780 |
Cost of handsets and accessories | 3,452 | 8,736 | 19,532 | 30,443 |
Selling, general and administrative | 68,503 | 139,004 | 235,474 | 403,082 |
Impairment and restructuring charges | (2) | 34,794 | 14,070 | 160,968 |
Depreciation | 3,614 | 2,428 | 11,626 | 17,031 |
Amortization | 3,191 | 3,663 | 10,229 | 11,420 |
Operating expenses | 140,392 | 279,855 | 511,226 | 904,724 |
Operating loss | 1,345 | (74,432) | (32,240) | (223,212) |
Net loss | (49,884) | (85,580) | (191,324) | (263,063) |
Without ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Operating revenues | 147,021 | 491,671 | ||
Operating expenses | ||||
Cost of service (exclusive of depreciation and amortization included below) | 61,634 | 220,295 | ||
Cost of handsets and accessories | 3,452 | 19,532 | ||
Selling, general and administrative | 72,568 | 249,942 | ||
Impairment and restructuring charges | (2) | 14,070 | ||
Depreciation | 3,614 | 11,626 | ||
Amortization | 3,191 | 10,229 | ||
Operating expenses | 144,457 | 525,694 | ||
Operating loss | 2,564 | (34,023) | ||
Net loss | (48,665) | (193,107) | ||
Impact | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Operating revenues | 5,284 | 12,685 | ||
Operating expenses | ||||
Cost of service (exclusive of depreciation and amortization included below) | 0 | 0 | ||
Cost of handsets and accessories | 0 | 0 | ||
Selling, general and administrative | 4,065 | 14,468 | ||
Impairment and restructuring charges | 0 | 0 | ||
Depreciation | 0 | 0 | ||
Amortization | 0 | 0 | ||
Operating expenses | 4,065 | 14,468 | ||
Operating loss | 1,219 | (1,783) | ||
Net loss | 1,219 | (1,783) | ||
Service and other revenues | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Operating revenues | 138,596 | 200,874 | 465,603 | 664,446 |
Service and other revenues | Without ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Operating revenues | 142,753 | 479,541 | ||
Service and other revenues | Impact | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Operating revenues | 4,157 | 13,938 | ||
Handset and accessory revenues | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Operating revenues | 3,141 | $ 4,549 | 13,383 | $ 17,066 |
Handset and accessory revenues | Without ASC 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Operating revenues | 4,268 | 12,130 | ||
Handset and accessory revenues | Impact | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Operating revenues | $ 1,127 | $ (1,253) |
Impairment, Restructuring and_3
Impairment, Restructuring and Other Charges - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($)site | Jun. 30, 2018USD ($)site | Sep. 30, 2017USD ($)site | Sep. 30, 2018USD ($)site | Sep. 30, 2017USD ($)site | Mar. 31, 2018site | |
Impairment of Long-Lived Assets [Line Items] | ||||||
Impairment of long-lived assets abandoned | $ 3,100 | $ 7,000 | ||||
Restructuring charges, net | $ 10,021 | |||||
Number of transmitter and receiver sites terminated | site | 1,350 | |||||
Restructuring reserve, accrual adjustment | $ (3,600) | $ (13,700) | ||||
Number of transmitters expected to be terminated | site | 110 | 110 | 600 | |||
Nextel Brazil | ||||||
Impairment of Long-Lived Assets [Line Items] | ||||||
Impairment of long-lived assets used | $ 56,500 | |||||
Restructuring reserve, accrual adjustment | $ (9,400) | |||||
Number of transmitter and receiver sites that will continued to be utilized | site | 400 | |||||
Nextel Brazil | RAN Sharing Agreement Scope Change | ||||||
Impairment of Long-Lived Assets [Line Items] | ||||||
Restructuring charges, net | $ 29,900 | |||||
Nextel Brazil | Contract termination | ||||||
Impairment of Long-Lived Assets [Line Items] | ||||||
Restructuring charges, net | $ 11,900 | 9,200 | $ 37,100 | $ 61,800 | ||
Number of transmitter and receiver sites terminated | site | 200 | |||||
Number of transmitters expected to be terminated | site | 250 | |||||
Nextel Brazil | Contract termination | RAN Sharing Agreement Scope Change | ||||||
Impairment of Long-Lived Assets [Line Items] | ||||||
Restructuring charges, net | $ 15,000 | |||||
Number of transmitter and receiver sites terminated | site | 700 | |||||
Nextel Brazil | Option to Exchange Sites | ||||||
Impairment of Long-Lived Assets [Line Items] | ||||||
Number of transmitter and receiver sites terminated | site | 500 | |||||
Nextel Brazil | Employee severance | ||||||
Impairment of Long-Lived Assets [Line Items] | ||||||
Restructuring charges, net | $ 4,900 |
Impairment, Restructuring and_4
Impairment, Restructuring and Other Charges - Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total impairment, restructuring and other (benefits) charges, net | $ (2) | $ 34,794 | $ 14,070 | $ 160,968 |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 107,306 | |||
Restructuring charges, net | 10,021 | |||
Cash payments and other | (29,379) | |||
Foreign currency translation adjustment | (16,805) | |||
Ending balance | 71,143 | 71,143 | ||
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total impairment, restructuring and other (benefits) charges, net | 0 | 282 | 352 | 825 |
Brazil | Operating segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total impairment, restructuring and other (benefits) charges, net | $ (2) | $ 34,512 | $ 13,718 | $ 160,143 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Supplemental Financial Statement Information [Abstract] | ||||
Restricted cash | $ 108,100 | $ 111,900 | $ 112,300 | $ 164,900 |
Cash and cash equivalents | 152,712 | 193,888 | ||
Cash in escrow (included in prepaid expenses and other) | 106,071 | 110,024 | ||
Other (included in other assets) | 2,021 | 1,866 | ||
Cash, cash equivalents and restricted cash | $ 260,804 | $ 305,778 | $ 347,012 | $ 422,232 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Prepaid and Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Supplemental Financial Statement Information [Abstract] | ||
Cash in escrow | $ 106,071 | $ 110,024 |
Brazil judicial deposits | 52,755 | 43,648 |
Value-added taxes | 22,941 | 37,191 |
Cash collateral related to performance bonds | 578 | 50,340 |
Other prepaid expenses | 31,270 | 14,231 |
Other current assets | 21,150 | 8,583 |
Other Assets, Current | $ 234,765 | $ 264,017 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Supplemental Financial Statement Information [Abstract] | ||
Land | $ 404 | $ 489 |
Building and leasehold improvements | 629 | 935 |
Network equipment, communication towers and network software | 95,307 | 82,493 |
Software, office equipment, furniture and fixtures and other | 26,806 | 22,498 |
Less: Accumulated depreciation and amortization | (21,497) | (11,461) |
Property, plant and equipment, gross | 101,649 | 94,954 |
Construction in progress | 19,944 | 22,308 |
Property, plant and equipment, net | $ 121,593 | $ 117,262 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information - Intangible Assets, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 176,085 | $ 202,283 |
Accumulated Amortization | (17,743) | (10,526) |
Net Carrying Value | $ 158,342 | 191,757 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 26 years | |
Gross Carrying Value | $ 163,444 | 186,983 |
Accumulated Amortization | (9,316) | (5,426) |
Net Carrying Value | $ 154,128 | 181,557 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 4 years | |
Gross Carrying Value | $ 12,641 | 15,300 |
Accumulated Amortization | (8,427) | (5,100) |
Net Carrying Value | $ 4,214 | $ 10,200 |
Supplemental Financial Statem_7
Supplemental Financial Statement Information - Future Estimated Amortization Expense (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 13,287 |
2,019 | 9,424 |
2,020 | 6,615 |
2,021 | 6,615 |
2,022 | $ 6,615 |
Supplemental Financial Statem_8
Supplemental Financial Statement Information - Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Brazil judicial deposits | $ 99,590 | $ 110,758 |
Cash collateral related to contingencies | 49,576 | 55,027 |
Other | 74,893 | 54,224 |
Other assets | $ 224,059 | $ 220,009 |
Supplemental Financial Statem_9
Supplemental Financial Statement Information - Accrued Expenses and Other (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Supplemental Financial Statement Information [Abstract] | ||
Contingencies | $ 64,554 | $ 78,006 |
Network system and information technology expenses | 49,077 | 48,702 |
Non-income based taxes | 36,700 | 30,044 |
Payroll related items and commissions | 24,016 | 32,613 |
License fees | 18,013 | 17,501 |
Other | 72,857 | 101,263 |
Accrued expenses and other | $ 265,217 | $ 308,129 |
Supplemental Financial State_10
Supplemental Financial Statement Information - Other Long-term Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Supplemental Financial Statement Information [Abstract] | ||
Non-current withholding taxes | $ 77,870 | $ 67,356 |
Accrued lease terminations and other restructuring charges | 61,799 | 90,128 |
Conversion option for convertible senior notes | 53,503 | 0 |
Other | 78,020 | 61,106 |
Other long-term liabilities | $ 271,192 | $ 218,590 |
Supplemental Financial State_11
Supplemental Financial Statement Information - Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Supplemental Financial Statement Information [Abstract] | ||||
Cash paid for capital expenditures, including capitalized interest on property, plant and equipment | $ 45,357 | $ 52,068 | ||
Change in capital expenditures accrued and unpaid or financed, including interest capitalized | (4,669) | (21,968) | ||
Capital expenditures | $ 17,583 | $ 11,661 | $ 40,688 | $ 30,100 |
Supplemental Financial State_12
Supplemental Financial Statement Information - Revenue Based Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Revenue Recognition [Abstract] | ||
Revenue-based taxes and other excise taxes | $ 6 | $ 23.1 |
Supplemental Financial State_13
Supplemental Financial Statement Information - Diluted Net (Loss) Income Per Common Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Revenue-based taxes and other excise taxes | $ 6 | $ 23.1 | ||
Convertible Common Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 18.5 | 18.5 | ||
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 3.5 | 3.7 | 3.4 | 3.5 |
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 1.4 | 0.1 | 0.7 | 0.3 |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Revenue-based taxes and other excise taxes | $ 3.4 | $ 12.1 |
Discontinued Operations (Detail
Discontinued Operations (Details) - Nextel Mexico - USD ($) $ in Millions | Apr. 30, 2015 | Dec. 31, 2010 | Sep. 30, 2018 | Jul. 31, 2018 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Purchase price | $ 1,875 | ||||
Deposited in escrow | $ 187.5 | ||||
Payment for settlement of an indemnification claim | $ 4 | $ 4 | |||
Release of escrow | $ 73.5 | ||||
Amount remaining in escrow | 106.1 | ||||
Income tax settlement | $ 12.2 | ||||
Tax Year 2010 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Potential claims against escrow | 35.5 | ||||
Tax Year 2011 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Potential claims against escrow | 36.9 | ||||
Tax Years 2011 through 2014 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Potential claims against escrow | $ 37.6 | ||||
Tax Years 2010 and 2011 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Release of escrow | 68.3 | ||||
Potential claims against escrow | $ 72.4 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt [Abstract] | ||
Brazil equipment financing facility | $ 238,669 | $ 242,883 |
Brazil bank loans | 164,597 | 200,567 |
Brazil spectrum financing | 100,794 | 122,044 |
Convertible senior notes | 70,702 | 0 |
Brazil capital lease and tower financing obligations | 70,325 | 90,213 |
Total debt | 645,087 | 655,707 |
Less: current portion | (21,755) | (7,990) |
Total debt, excluding current portion | $ 623,332 | $ 647,717 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 9 Months Ended | ||
Aug. 31, 2018USD ($)dshares$ / shares | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Gross proceeds from issuance of convertible notes | $ 115,000,000 | $ 0 | ||
Conversion option for convertible senior notes | 53,503,000 | $ 0 | ||
Convertible senior notes | ||||
Debt issued | $ 115,000,000 | |||
Interest rate (as percent) | 4.25% | |||
Gross proceeds from issuance of convertible notes | $ 115,000,000 | |||
Debt issuance costs | $ 5,200,000 | |||
Repurchase price,as percent of notes to be repurchased (as percent) | 100.00% | |||
Consecutive trading days | d | 30 | |||
Convertible senior notes | Debt Conversion One | ||||
Conversion ratio | 0.1609658 | |||
Aggregate common shares (in shares) | shares | 18,511,067 | |||
Conversion price (in dollars per share) | $ / shares | $ 6.21 | |||
Threshold percentage of stock price trigger (as percent) | 130.00% | |||
Trading days | d | 20 | |||
Convertible senior notes | Debt Conversion Two | ||||
Threshold percentage of stock price trigger (as percent) | 98.00% | |||
Trading days | d | 5 | |||
Consecutive trading days | d | 5 | |||
Principal amount | $ 1,000 | |||
Convertible senior notes | Convertible Senior Notes Due, Initially Placement | ||||
Debt issued | 100,000,000 | |||
Debt issuance costs | 3,300,000 | |||
Convertible senior notes | Convertible Senior Notes Due, Additional Option Exercised | ||||
Debt issued | 15,000,000 | |||
Debt issuance costs | $ 1,900,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Short-term investments | $ 48,407 | $ 16,711 |
Loss related conversion option embedded in convertible senior note | 11,700 | |
Brazil | ||
Short-term investments | $ 48,400 | $ 16,700 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Long-Term Debt Instrument (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Aug. 31, 2018 | Dec. 31, 2017 |
Carrying Amount | $ 574,762 | $ 565,494 | |
Estimated Fair Value | 521,434 | 510,495 | |
Brazil equipment financing | |||
Carrying Amount | 238,669 | 242,883 | |
Estimated Fair Value | 233,533 | 237,958 | |
Brazil bank loans and other | |||
Carrying Amount | 164,597 | 200,567 | |
Estimated Fair Value | 100,358 | 144,312 | |
Brazil spectrum financing | |||
Carrying Amount | 100,794 | 122,044 | |
Estimated Fair Value | 114,247 | 128,225 | |
Convertible senior notes | |||
Carrying Amount | 70,702 | 0 | |
Estimated Fair Value | $ 73,296 | $ 0 | |
Interest rate (as percent) | 4.25% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) R$ in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | |||
May 31, 2016USD ($) | May 31, 2016BRL (R$) | Sep. 30, 2018USD ($) | Sep. 30, 2018BRL (R$) | Dec. 31, 2017USD ($) | |
Estimate of reasonably possible losses, not deemed probable | $ 730 | ||||
Nextel Brazil | |||||
Accrued liabilities | 78.3 | $ 81.2 | |||
Accrued liabilities related to unasserted claims | 7.5 | $ 7.4 | |||
Roaming and RAN Sharing Commitment | Nextel Brazil | |||||
Contract period | 10 years | 10 years | |||
Milestone period | 5 years | 5 years | |||
Minimum amount required under agreement | $ 246.2 | R$ 800 | |||
Roaming Sharing Commitment | Nextel Brazil | |||||
Minimum amount required under agreement | 54.5 | R$ 218 | |||
RAN Sharing Commitment | Nextel Brazil | |||||
Minimum amount required under agreement | $ 67.6 | R$ 271 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Operating revenues | $ 141,737 | $ 205,423 | $ 478,986 | $ 681,512 | |
Segment earnings (losses) | 8,148 | (33,547) | 3,685 | (33,793) | |
Less: | |||||
Impairment, restructuring and other benefits, net | 2 | (34,794) | (14,070) | (160,968) | |
Depreciation and amortization | (6,805) | (6,091) | (21,855) | (28,451) | |
Foreign currency transaction (losses) gains, net | (12,238) | 14,174 | (60,092) | 12,197 | |
Interest expense and other, net | (38,828) | (25,230) | (96,046) | (60,393) | |
Loss from continuing operations before income tax benefit | (49,721) | (85,488) | (188,378) | (271,408) | |
Capital expenditures | 17,583 | 11,661 | 40,688 | 30,100 | |
Identifiable assets | 1,039,588 | 1,039,588 | $ 1,113,522 | ||
Corporate | |||||
Operating revenues | 0 | 24 | 22 | 83 | |
Segment earnings (losses) | (4,601) | (6,281) | (12,751) | (21,980) | |
Less: | |||||
Impairment, restructuring and other benefits, net | 0 | (282) | (352) | (825) | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Identifiable assets | 240,421 | 240,421 | 147,603 | ||
Nextel Brazil | Operating segment | |||||
Operating revenues | 141,737 | 205,399 | 478,964 | 681,429 | |
Segment earnings (losses) | 12,749 | (27,266) | 16,436 | (11,813) | |
Less: | |||||
Impairment, restructuring and other benefits, net | 2 | (34,512) | (13,718) | (160,143) | |
Capital expenditures | 17,583 | $ 11,661 | 40,688 | $ 30,100 | |
Identifiable assets | $ 799,167 | $ 799,167 | $ 965,919 |