Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 11, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 287,996,358 | ||
Entity Registrant Name | NII HOLDINGS INC | ||
Entity Central Index Key | 0001037016 | ||
Entity Tax Identification Number | 911671412 | ||
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 Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 101,377,968 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 142,486 | $ 193,888 |
Short-term investments | 32,329 | 16,711 |
Accounts receivable, net of allowance for doubtful accounts of $19,637 and $42,011 | 99,885 | 106,715 |
Handset and accessory inventory | 1,949 | 3,163 |
Prepaid expenses and other | 245,916 | 264,017 |
Total current assets | 522,565 | 584,494 |
Property, plant and equipment, net | 143,930 | 117,262 |
Intangible assets, net | 162,156 | 191,757 |
Other assets | 231,179 | 220,009 |
Total assets | 1,059,830 | 1,113,522 |
Current liabilities | ||
Accounts payable | 39,147 | 42,284 |
Accrued expenses and other | 298,990 | 308,129 |
Current portion of long-term debt | 21,350 | 7,990 |
Total current liabilities | 359,487 | 358,403 |
Long-term debt | 632,857 | 647,717 |
Other long-term liabilities | 249,055 | 218,590 |
Total liabilities | 1,241,399 | 1,224,710 |
Commitments and contingencies (Note 9) | ||
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, 101,323 shares issued and outstanding — 2018, 100,384 shares issued and outstanding — 2017 | 101 | 100 |
Paid-in capital | 2,143,240 | 2,139,299 |
Accumulated deficit | (2,236,883) | (2,127,903) |
Accumulated other comprehensive loss | (8,435) | (47,239) |
Total NII Holdings stockholders’ deficit | (101,977) | (35,743) |
Noncontrolling interest | (79,592) | (75,445) |
Total deficit | (181,569) | (111,188) |
Total liabilities and stockholders’ deficit | $ 1,059,830 | $ 1,113,522 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 19,637 | $ 42,011 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common stock shares issued (in shares) | 101,323,000 | 100,384,000 |
Common stock shares outstanding (in shares) | 101,323,000 | 100,384,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating revenues | |||
Operating revenues | $ 620,697 | $ 870,694 | $ 985,046 |
Operating expenses | |||
Cost of service (exclusive of depreciation and amortization included below) | 287,598 | 370,435 | 364,648 |
Cost of handsets and accessories | 18,571 | 40,207 | 29,273 |
Selling, general and administrative | 308,828 | 510,168 | 560,760 |
Impairment, restructuring and other charges, net | 18,949 | 175,358 | 1,384,811 |
Depreciation | 15,119 | 20,451 | 135,429 |
Amortization | 13,497 | 14,995 | 36,954 |
Operating expenses | 662,562 | 1,131,614 | 2,511,875 |
Operating loss | (41,865) | (260,920) | (1,526,829) |
Other (expense) income | |||
Interest expense, net | (100,513) | (118,605) | (113,732) |
Interest income | 12,357 | 41,507 | 37,689 |
Foreign currency transaction (losses) gains, net | (49,008) | (1,271) | 76,615 |
Other expense, net | (7,217) | (7,485) | (10,514) |
Other (expense) income | (144,381) | (85,854) | (9,942) |
Loss from continuing operations before income taxes | (186,246) | (346,774) | (1,536,771) |
Income tax benefit (Note 10) | 0 | 6,347 | 2,892 |
Loss from continuing operations | (186,246) | (340,427) | (1,533,879) |
(Loss) income from discontinued operations, net of income taxes (Note 6) | (8,414) | 1,005 | (19,994) |
Net loss | (194,660) | (339,422) | (1,553,873) |
Net loss attributable to noncontrolling interest | (51,580) | (46,275) | 0 |
Net loss attributable to NII Holdings | $ (143,080) | $ (293,147) | $ (1,553,873) |
Net loss from continuing operations per common share, basic and diluted (in dollars per share) | $ (1.86) | $ (3.40) | $ (15.32) |
Net (loss) income from discontinued operations per common share, basic and diluted (in dollars per share) | (0.08) | 0.01 | (0.20) |
Net loss attributable to NII Holdings per common share, basic and diluted (in dollars per share) | $ (1.94) | $ (3.39) | $ (15.52) |
Weighted average number of common shares outstanding, basic and diluted (shares) | 100,675 | 100,332 | 100,098 |
Comprehensive loss, net of income taxes | |||
Foreign currency translation adjustment | $ 38,804 | $ 7,360 | $ 169,785 |
Other comprehensive income | 38,804 | 7,360 | 169,785 |
Net loss attributable to NII Holdings | (143,080) | (293,147) | (1,553,873) |
Total comprehensive loss attributable to NII Holdings | (104,276) | (285,787) | (1,384,088) |
Service and other revenues | |||
Operating revenues | |||
Operating revenues | 605,492 | 848,806 | 963,209 |
Handset and accessory revenues | |||
Operating revenues | |||
Operating revenues | $ 15,205 | $ 21,888 | $ 21,837 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total NII Holdings Stockholders’ Equity (Deficit) | Noncontrolling Interest |
Beginning Balance, Shares at Dec. 31, 2015 | 100,001 | ||||||
Beginning Balance, Value at Dec. 31, 2015 | $ 1,543,995 | $ 100 | $ 2,070,497 | $ (280,883) | $ (245,719) | $ 1,543,995 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (1,553,873) | (1,553,873) | (1,553,873) | ||||
Other comprehensive income | 169,785 | 169,785 | 169,785 | ||||
Share-based compensation activity, Shares | 257 | ||||||
Share-based compensation activity | 6,115 | 6,115 | 6,115 | ||||
Ending Balance, Shares at Dec. 31, 2016 | 100,258 | ||||||
Ending Balance, Value at Dec. 31, 2016 | 166,022 | $ 100 | 2,076,612 | (1,834,756) | (75,934) | 166,022 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (339,422) | (293,147) | (293,147) | (46,275) | |||
Other comprehensive income | 8,820 | 7,360 | 7,360 | 1,460 | |||
Share-based compensation activity, Shares | 126 | ||||||
Share-based compensation activity | 4,967 | 4,797 | 4,797 | 170 | |||
Implementation of revenue recognition accounting standard | 48,425 | 57,890 | 21,335 | 79,225 | (30,800) | ||
Ending Balance, Shares at Dec. 31, 2017 | 100,384 | ||||||
Ending Balance, Value at Dec. 31, 2017 | (111,188) | $ 100 | 2,139,299 | (2,127,903) | (47,239) | (35,743) | (75,445) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Implementation of accounting standard | Implementation of revenue recognition accounting standard | 48,703 | 34,100 | 34,100 | 14,603 | |||
Net loss | (194,660) | (143,080) | (143,080) | (51,580) | |||
Other comprehensive income | 55,446 | 38,804 | 38,804 | 16,642 | |||
Share-based compensation activity, Shares | 939 | ||||||
Share-based compensation activity | 4,230 | $ 1 | 3,941 | 3,942 | 288 | ||
Noncontrolling interest investment | 15,900 | 15,900 | |||||
Ending Balance, Shares at Dec. 31, 2018 | 101,323 | ||||||
Ending Balance, Value at Dec. 31, 2018 | $ (181,569) | $ 101 | $ 2,143,240 | $ (2,236,883) | $ (8,435) | $ (101,977) | $ (79,592) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (194,660,000) | $ (339,422,000) | $ (1,553,873,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Loss (income) from discontinued operations | 8,414,000 | (1,005,000) | 19,994,000 |
Amortization of debt discounts (premiums) and financing costs | 3,791,000 | (3,297,000) | (4,570,000) |
Depreciation and amortization | 28,616,000 | 35,446,000 | 172,383,000 |
Provision for losses on accounts receivable | 36,042,000 | 76,518,000 | 77,883,000 |
Provision for inventory obsolescence | 0 | 1,033,000 | 1,731,000 |
Foreign currency transaction losses (gains), net | 49,008,000 | 1,271,000 | (76,615,000) |
Impairment charges and (gains) losses on disposal of fixed assets | (1,315,000) | 68,529,000 | 1,352,667,000 |
Deferred income tax benefit | 0 | (568,000) | (3,183,000) |
Share-based compensation expense | 3,990,000 | 4,967,000 | 6,076,000 |
(Gain) loss on derivative instruments | (8,187,000) | 0 | 3,478,000 |
Other, net | (1,338,000) | 2,636,000 | (1,580,000) |
Changes in assets and liabilities: | |||
Accounts receivable | (45,475,000) | (30,534,000) | (58,951,000) |
Prepaid value-added taxes | (10,358,000) | 8,749,000 | 15,894,000 |
Handset and accessory inventory | 460,000 | 4,139,000 | 17,273,000 |
Prepaid expenses and other | (24,555,000) | (13,358,000) | 8,903,000 |
Other long-term assets | (21,095,000) | (7,244,000) | (41,447,000) |
Accrued value-added taxes | 14,297,000 | 19,211,000 | (7,565,000) |
Other long-term liabilities | 23,279,000 | 85,995,000 | 41,851,000 |
Accounts payable, accrued expenses and other | 13,459,000 | (204,000) | (15,554,000) |
Net cash used in operating activities | (125,627,000) | (87,138,000) | (45,205,000) |
Cash flows from investing activities: | |||
Capital expenditures | (60,942,000) | (66,536,000) | (61,291,000) |
Purchases of investments | (817,507,000) | (629,364,000) | (1,075,119,000) |
Proceeds from sales of investments | 799,106,000 | 688,714,000 | 1,102,492,000 |
Purchase of licenses | (4,615,000) | (2,289,000) | (16,936,000) |
Change in deposits, net | 43,644,000 | 27,965,000 | 68,366,000 |
Other, net | 31,000 | 275,000 | (2,243,000) |
Total investing cash (used in) provided by continuing operations | (40,283,000) | 18,765,000 | 15,269,000 |
Total investing cash (used in) provided by discontinued operations | (3,953,000) | 68,000 | (23,858,000) |
Net cash (used in) provided by investing activities | (44,236,000) | 18,833,000 | (8,589,000) |
Cash flows from financing activities: | |||
Gross proceeds from issuance of convertible notes | 115,000,000 | 0 | 0 |
Proceeds from noncontrolling interest investment | 15,900,000 | 50,000,000 | 0 |
Repayments under equipment financing and local bank loans | (2,028,000) | (85,949,000) | (90,843,000) |
Repayments under capital leases and other | (5,282,000) | (9,522,000) | (2,161,000) |
Payments of debt financing costs | (9,299,000) | (2,026,000) | 0 |
Other, net | 2,206,000 | (1,193,000) | 0 |
Net cash provided by (used in) financing activities | 116,497,000 | (48,690,000) | (93,004,000) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,673,000) | 541,000 | (1,045,000) |
Net decrease in cash, cash equivalents and restricted cash | (55,039,000) | (116,454,000) | (147,843,000) |
Cash, cash equivalents and restricted cash, beginning of year | 305,778,000 | 422,232,000 | 570,075,000 |
Cash, cash equivalents and restricted cash, end of year | $ 250,739,000 | $ 305,778,000 | $ 422,232,000 |
Summary of Operations
Summary of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Operations | Summary of Operations Overview. Unless the context requires otherwise, “NII Holdings, Inc.,” “NII Holdings,” “NII,” “we,” “our,” “us” and “the Company” refer to the combined businesses of NII Holdings, Inc. and its consolidated subsidiaries. We refer to our majority-owned Brazilian operating company, Nextel Telecomunicações Ltda., as Nextel Brazil. Our consolidated results from continuing operations in this annual report on Form 10-K include the results of operations of Nextel Brazil and our corporate headquarters. We provide wireless communication services under the Nextel TM brand in Brazil with our principal operations located in major urban and suburban centers with high population densities and related transportation corridors where there is a concentration of Brazil’s population and economic activity, including primarily Rio de Janeiro and São Paulo. Nextel Brazil operates a wideband code division multiple access, or WCDMA, network, which has been upgraded to offer long-term evolution, or LTE, services in certain areas. We are also a party to a roaming agreement that allows us to offer our subscribers nationwide voice and data services outside of our network's footprint. Our target market is individual consumers who use our services to meet both professional and personal needs. Our target subscribers generally exhibit above average usage, revenue and loyalty characteristics. We believe our subscribers are attracted to the services and pricing plans we offer, the quality of and data speeds provided by our network and our dedicated customer service. The services we currently offer include: • mobile telephone voice and wireless data services; • international voice and data roaming services; and • value-added services, including sports, music and entertainment streaming capabilities; online education; and access to national and international WiFi hotspot networks. Our original network utilized integrated digital enhanced network, or iDEN, technology to provide mobile services on our 800 megahertz, or MHz, spectrum holdings. During the last several years, Nextel Brazil experienced iDEN subscriber losses and overall declines in its iDEN service revenue. In response to continued subscriber losses on its iDEN network, in September 2017, Nextel Brazil decided to wind down its iDEN operations. After migrating some subscribers to its WCDMA network, Nextel Brazil disconnected all of its remaining iDEN subscribers at the end of the second quarter of 2018. Proposed Sale of Nextel Brazil. On March 18, 2019, NII Holdings, Inc. and NII International Holdings S.à r.l., or NIIH, a wholly-owned subsidiary of NII, entered into a purchase agreement with América Móvil, S.A.B. de C.V., or AMX, and AI Brazil Holdings B.V., or AI Brazil Holdings, pursuant to which NII and AI Brazil Holdings will sell their jointly-owned wireless operations in Brazil. Specifically, NIIH will sell all of the issued and outstanding shares of NII Brazil Holdings S.à r.l., or NIIBH, and such shares, together with any shares of NIIBH issued after the date of the purchase agreement, or the acquired equity interests, to AMX. We refer to this transaction as the Nextel Brazil transaction. Also pursuant to the purchase agreement, concurrent to, and as a condition of, the consummation of the Nextel Brazil transaction, AI Brazil Holdings will sell all of its interests in Nextel Holdings S.à r.l., or Nextel Holdings, to NIIBH. We refer to this transaction as the AI Brazil Holdings transaction. At the closing of the Nextel Brazil transaction and the AI Brazil Holdings transaction, AMX will indirectly own all of the issued and outstanding shares of Nextel Brazil. Under the terms of the purchase agreement, AMX will acquire the acquired equity interests for an aggregate purchase price of $905.0 million on a debt free and cash free basis, subject to certain adjustments at closing, including reimbursement for capital expenditures and working capital investments made from March 1, 2019 to closing. AI Brazil Holdings will receive its pro rata share of the net purchase price plus the preferred return contemplated in the Amended and Restated Articles of Association of Nextel Holdings. AMX will place $30.0 million of the purchase price into an 18 -month escrow account to secure NII’s indemnification obligations under the purchase agreement. In addition, in connection with the Nextel Brazil transaction, NII and AI Brazil Holdings have entered into an agreement relating to the Nextel Brazil transaction that includes the resolution of a dispute regarding the investment of funds into Nextel Holdings from an escrow related to NII’s sale of its operations in Mexico, or the Mexico escrow, pursuant to which the parties have agreed that AI Brazil Holdings will receive, after the closing of the Nextel Brazil transaction, the first $10.0 million recovered from the Mexico escrow followed by 6% of the value of additional funds recovered from the Mexico escrow, in both cases, if and when funds are released. NII has also agreed to indemnify AI Brazil Holdings for damages that may arise from certain tax contingencies, transaction expenses, transaction-related litigation and other matters in connection with its participation in the Nextel Brazil transaction. The closing of the transactions contemplated by the purchase agreement are subject to the satisfaction of customary conditions, including approval of the stockholders of NII, receipt of required regulatory and antitrust approvals, and either an amendment eliminating the obligations contemplated under, or an escrow agreement providing for a deposit in accordance with, NII’s indenture with respect to our 4.25% convertible senior notes due 2023. The purchase agreement includes certain termination rights for each party and provides that, in specified circumstances, NII is required to pay a termination fee of $25.0 million . In the event that the purchase agreement is terminated because NII’s stockholders fail to approve the Nextel Brazil transaction, NII is obligated to reimburse AMX for its documented out-of-pocket expenses incurred in connection with the purchase agreement and the transactions contemplated thereby, up to $2.0 million . The purchase agreement contains customary representations, warranties and covenants made by NII, NIIH, AMX and AI Brazil Holdings. Among other things, NIIH has agreed to conduct NIIBH’s, and each of its subsidiaries’, business in the ordinary course, use reasonable best efforts to operate its business in accordance with its budget for the year 2019 and use commercially reasonable efforts to maintain and preserve its business organization and preserve certain business relations. In connection with the proposed sale of Nextel Brazil, NII’s Board of Directors has approved a plan to dissolve and wind up its headquarters upon the completion of this transaction, which is also subject to approval by NII’s stockholders. Minority Investment. On June 5, 2017, the Company 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 the Company and ice group, entered into an investment agreement and a shareholders 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 the Company 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, to AI Media Holdings (NMT) LLC ( 90% ) and Bridford Music B.V. ( 10% ). During 2018, AI Brazil Holdings made an additional $15.9 million investment in Nextel Holdings to maintain its current ownership level. Since we continue to have a controlling interest in Nextel Brazil, we have consolidated this entity and its subsidiaries. The investment agreement provided for, after ice group’s initial investment, the Company's contribution of proceeds arising from the release of funds deposited in escrow in connection with the sale of our Mexican operations through a 115 account, which is a contribution without the issuance of additional equity. See Note 6 for more information regarding escrowed funds. Management does not believe that this requirement survives the termination of the investment agreement and intends for all future contributions by the Company to Nextel Holdings to be made through capital contributions with additional equity being issued to us. ice group and AI Brazil Holdings have notified the Company that they believe future escrow proceeds received by the Company from the escrow account must be contributed to Nextel Holdings through the 115 account without the issuance of equity, which would result in 30% of the disputed escrow being subject to AI Brazil Holdings' non-controlling interest. To the extent the Nextel Brazil transaction is not completed and the related settlement between us and AI Brazil Holdings is not consummated, AI Brazil Holdings’ non-controlling interest in future escrow proceeds received by the Company would remain in dispute. Sources of Funding. As of December 31, 2018, our consolidated sources of funding included $174.8 million in cash and short-term investments and $106.1 million in cash held in escrow to secure our indemnification obligations in connection with the sale of Nextel Mexico. In addition, AI Brazil Holdings B.V., or AI Brazil Holdings, our minority investor in Nextel Holdings S. à r.l., or Nextel Holdings, may fund up to 30% of the cash needs that arise at Nextel Holdings and its subsidiaries in order to maintain its current ownership in Nextel Holdings. If we are able to recover a significant amount of the remaining cash held in escrow in 2019, we believe our current sources of funding described above will provide us with sufficient liquidity to fund our current business plan for the next few years. However, our business plan is based on a number of assumptions, including assumptions regarding the recovery of the escrow, our ability to maintain subscriber turnover levels similar to those we experienced in 2018 and continued investments from AI Brazil Holdings. If the ultimate amount recovered from our cash held in escrow does not meet our current forecasted amount, or if we do not recover substantially all of our previously requested escrowed funds in 2019, we may need to alter our business plan or obtain additional funding. In addition, if our actual results of operations differ from our business plan or AI Brazil Holdings decides not to provide additional capital, our business may be negatively affected, which would require us to alter our business plan or obtain additional funding. 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 certain errors existed in our previously filed financial statements. Specifically, for the year ended December 31, 2017, service and other revenues was understated by $0.9 million , cost of service was overstated by $4.2 million , impairment, restructuring and other charges, net was overstated by $4.4 million and depreciation was overstated by $1.7 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, we revised our prior period financial statements to correct these errors. 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 the year ended December 31, 2017, the correction of these errors resulted in an $11.2 million decrease in operating loss, loss from continuing operations and net loss, a $3.4 million decrease in net loss attributable to noncontrolling interest and a $7.9 million decrease in net loss attributable to NII Holdings. In addition, for the year ended December 31, 2017, the correction of these errors resulted in a $0.11 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or the U.S., requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results to be reported in future periods could differ from our estimates. Principles of Consolidation. The consolidated financial statements include the accounts of NII Holdings and our subsidiaries. Our decision to consolidate an entity is based on our control of the entity through direct and indirect majority interest in the entity. We eliminate all intercompany transactions, including intercompany profits and losses, in consolidation. Concentrations of Risk. Substantially all of our revenues are generated from our operations located in Brazil. Regulatory entities in Brazil regulate the licensing, construction, acquisition, ownership and operation of our networks, and certain other aspects of our business, including some of the rates we charge our subscribers. Changes in the current telecommunications statutes or regulations in Brazil could adversely affect our business. In addition, as of December 31, 2018, 81% of our total assets were owned by Nextel Brazil. Political, financial and economic developments in Brazil could impact the recoverability of our assets. Financial instruments that potentially subject us to significant amounts of credit risk consist of cash, cash equivalents, short-term investments and accounts receivable. Our cash and cash equivalents are deposited with high-quality financial institutions. At times, we maintain cash balances in excess of Federal Deposit Insurance Corporation (or the foreign country equivalent institution) limits. Our short-term investments are composed of certain investments made by Nextel Brazil. See Note 8 for further information. Our accounts receivable are generally unsecured. We routinely assess the credit worthiness of our subscribers and maintain allowances for probable losses, where necessary. Foreign Currency. We translate Nextel Brazil's results of operations from Brazilian reais to U.S. dollars using average exchange rates during the relevant period, while we translate assets and liabilities at the exchange rate in effect at the reporting date. We translate equity balances at historical rates. We report the resulting gains or losses from translating foreign currency financial statements as other comprehensive income or loss. In general, monetary assets and liabilities held by Nextel Brazil that are denominated in U.S. dollars give rise to realized and unrealized foreign currency transaction gains and losses, which we record in our consolidated statement of comprehensive loss as foreign currency transaction gains or losses. We report the effects of changes in exchange rates associated with certain U.S. dollar-denominated intercompany loans and advances to our foreign subsidiaries that are of a long-term investment nature as other comprehensive income or loss in our consolidated financial statements. We have determined that certain U.S. dollar-denominated intercompany loans and advances to Nextel Brazil are of a long-term investment nature. Cash and Cash Equivalents. We consider all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents, except for certain certificates of deposit in Brazil that are redeemable on demand. We classify these certificates of deposit as short-term investments. Cash equivalents primarily consist of money market funds and other similarly structured funds. Short-Term Investments. We classify investments in debt securities as available-for-sale as of the balance sheet date and report them at fair value. We record unrealized gains and losses, net of income tax, as other comprehensive income or loss. We report realized gains or losses, as determined on a specific identification basis, and other-than-temporary declines in value, if any, in net other expense in our consolidated statement of comprehensive loss. See Note 8 for additional information. Handset and Accessory Inventory. We record handsets and accessories at the lower of cost or their net realizable value. We determine cost by the weighted average costing method. We expense handset costs at the time of sale and classify such costs in cost of handsets and accessories. Inventory cost includes amounts associated with non-income based taxes. We analyze the net realizable value of handset and accessory inventory on a periodic basis. This analysis includes an assessment of the obsolescence of individual devices, our sales forecasts and other factors. We did no t record any losses related to inventory obsolescence in 2018. For the years ended December 31, 2017 and 2016, we recorded losses related to inventory obsolescence of $1.0 million and $ 1.7 million , respectively. Property, Plant and Equipment. We record property, plant and equipment, including improvements that extend useful lives or enhance functionality, at cost, while we charge maintenance and repairs to expense as incurred. We capitalize internal and external costs incurred to develop internal-use software, which consist primarily of costs related to configuration, interfaces, installation and testing. We also capitalize internal and external costs incurred to develop specified upgrades and enhancements if they result in significant additional functionalities for our existing software. We expense all costs related to evaluation of software needs, data conversion, training, maintenance and other post-implementation operating activities. We calculate depreciation using the straight-line method based on estimated useful lives ranging from 3 to 30 years for network equipment, communication towers and network software and 3 to 10 years for software, office equipment, furniture and fixtures, and other, which includes non-network internal use software. We include depreciation expense on our capital leases in accumulated depreciation. We amortize leasehold improvements over the shorter of the lease terms or the useful lives of the improvements. Construction in progress includes internal and external labor, materials, transmission and related equipment, engineering, site development, interest and other costs relating to the construction and development of our wireless network. We do not depreciate assets under construction until they are ready for their intended use. We capitalize interest and other costs, including labor and software upgrades, which are applicable to the construction of, and significant improvements that enhance functionality to, our network equipment. Asset Retirement Obligations. We record an asset retirement obligation, or ARO, and an associated asset retirement cost, or ARC, when we have a legal obligation in connection with the retirement of tangible long-lived assets. Our obligations arise from certain of our leases and relate primarily to the cost of removing our communication towers and network equipment from leased sites. We recognize an ARO, and the associated ARC, in the period in which it is incurred at fair value computed using discounted cash flow techniques. The liability is then accreted over time until the obligation is settled and the ARC is depreciated over the useful life of the related assets. We make adjustments for changes to either the timing or amount of the estimated future settlement obligation in the period incurred. We recognize increases in the present value of the AROs as an additional liability and add this amount to the carrying amount of the associated ARC. We record decreases as a reduction in both the recorded liability and the carrying amount of the associated ARC. As of December 31, 2018 and 2017 , our asset retirement obligations were included as a component of other long-term liabilities in our consolidated balance sheet and are as follows (in thousands): Balance, January 1, 2017 $ 27,606 New asset retirement obligations 486 Change in assumptions (9,181 ) Accretion 1,677 Settlement of asset retirement obligations (9,375 ) Foreign currency translation and other 112 Balance, December 31, 2017 11,325 New asset retirement obligations 282 Change in assumptions 753 Accretion 492 Settlement of asset retirement obligations (1,319 ) Foreign currency translation and other (2,038 ) Balance, December 31, 2018 $ 9,495 Derivative Financial Instruments. We occasionally enter into derivative transactions for hedging or risk management purposes. We record all derivative instruments as either assets or liabilities on our consolidated balance sheet at their fair value. We have not and do not intend to enter into any derivative transactions for speculative or profit generating purposes. See Note 8 for additional information. Valuation of Long-Lived Assets. We review long-lived assets such as property, plant and equipment and identifiable intangible assets with definite useful lives, which include our telecommunications licenses, for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the total of the expected undiscounted future cash flows of the asset or asset group is less than the carrying amount of the asset, we recognize a loss, if any, for the difference between the fair value and carrying value of the asset. Intangible Assets. Our intangible assets consist of our telecommunications licenses and our customer relationships. We calculate amortization on our licenses using the straight-line method based on an estimated useful life of 26 to 30 years. We calculate amortization on our customer relationships using the straight-line method based on an estimated useful life of 4 years. In Brazil, licenses are customarily issued conditionally for specified periods of time ranging from 15 to 30 years, including renewals. In addition, the wireless telecommunications industry is experiencing significant technological change, and the commercial life of any particular technology is difficult to predict. In light of these uncertainties, we classify our licenses as definite lived intangible assets. In connection with the implementation of fresh start accounting, we revised the remaining estimated useful lives of our licenses to include renewal periods in cases where it is probable that a renewal will occur. Revenue Recognition. Operating revenues primarily consist of wireless service revenues and revenues generated from the sale of handsets and accessories. Wireless service revenues primarily consist of access charges for providing customers with voice, data or messaging services over the contract period. As a result of the implementation of Accounting Standards Update, or ASU, No. 2014-09, “Revenue from Contracts with Customers,” and several related amendments, which we refer to as Accounting Standards Codification, or ASC, 606, beginning January 1, 2018, 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. We recognize revenue related to access charges ratably over the contract period and net of taxes collected from customers. We recognize handset and accessory revenue when a subscriber takes possession of the 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. Other revenues primarily include amounts generated from our handset maintenance programs, roaming revenues generated from other companies’ subscribers that roam on our networks and rental revenues from third party tenants that rent space on our transmitter and receiver sites. We recognize roaming revenues at contractual rates per minute as minutes are used. We recognize revenues from third party tenants on a monthly basis based on the terms set by the underlying agreements. Revenue-Based Taxes. Prior to the implementation of ASC 606, we recorded certain revenue-based taxes on a gross basis. For the years ended December 31, 2017 and 2016, we recognized $28.2 million and $46.9 million , respectively, in revenue-based taxes as a component of both service and other revenues and selling, general and administrative expenses in our 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 $15.2 million in revenue-based taxes as a component of both service and other revenues and selling, general and administrative expenses in our consolidated statement of comprehensive loss during the year ended December 31, 2018. Accounts Receivable. Accounts receivable represents amounts due from subscribers, net of an allowance for doubtful accounts, and includes amounts that have been billed to customers and amounts that have not yet been billed. Allowance for Doubtful Accounts. We establish an allowance for doubtful accounts receivable sufficient to cover probable and reasonably estimated losses. We estimate this allowance based on historical experience, aging of accounts receivable and recent collections trends. While we believe that the estimates we use are reasonable, actual results could differ from those estimates. Advertising Costs. We expense costs related to advertising and other promotional expenditures as incurred. Advertising costs totaled $26.6 million , $26.9 million and $30.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. Share-Based Compensation. We measure and recognize compensation expense for all share-based compensation awards based on estimated fair values. We account for share-based awards exchanged for employee services in accordance with the authoritative guidance for stock compensation. Under that guidance, share-based compensation expense is measured at the grant date, based on the estimated fair value of the award when settled in shares, and is recognized over the employee's requisite service period. Compensation expense is amortized on a straight-line basis over the requisite service period for the entire award, which is generally the vesting period of the award. See Note 12 for more information. Net (Loss) Income Per Common Share, Basic and Diluted. Basic net loss per common share is computed by dividing adjusted net (loss) income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net (loss) income per common share reflects the potential dilution of securities that could participate in our earnings, but not securities that are antidilutive, including stock options with an exercise price greater than the average market price of our common stock. Our unvested restricted stock awards, or RSAs, contain non-forfeitable rights to dividends, whether paid or unpaid. As a result, our RSAs are considered participating securities because their holders have the right to participate in earnings with common stockholders. We use the two-class method to allocate net income between common shares and other participating securities. AI Brazil Holdings' investment in Nextel Holdings was made in the form of cumulative preferred shares. Under the terms of this agreement, liquidation proceeds or distributions of Nextel Brazil's future earnings will be allocated first to AI Brazil Holdings until its cumulative dividends and original investment have been recouped. Earnings will then be allocated to us to the extent of our investment and pro rata thereafter. AI Brazil Holdings is entitled to receive a 2% annual dividend on its cumulative preferred voting stock in Nextel Holdings. AI Brazil Holdings' preferred shares are considered participating securities. As presented for the years ended December 31, 2018 and 2017, our calculations of basic net loss from continuing operations per common share include $51.6 million and $46.3 million , respectively, in net loss attributable to noncontrolling interest and $1.0 million and $0.5 million , respectively, related to undeclared dividends on AI Brazil Holdings' preferred stock. For the year ended December 31, 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. In addition, for the years ended December 31, 2018, 2017 and 2016, we did not include 3.4 million , 3.4 million and 3.5 million stock options, respectively, and 1.0 million , 0.3 million and 0.8 million in restricted common shares, respectively, in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. Income Taxes. We account for income taxes using the asset and liability method, under which we recognize deferred income taxes for the tax consequences attributable to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities, as well as for tax loss carryforwards and tax credit carryforwards. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. We recognize the effect on deferred taxes of a change in tax rates in income in the period that includes the enactment date. We recognize a valuation allowance on deferred tax assets unless it is determined that it is “more-likely-than-not” that the asset will be realized. Recently Adopted Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board, or the FASB, issued 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. We have disclosed the results under both the new and old standards for this first year after adoption. See Note 3 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 consolidated balance sheets to cash, cash equivalents and restricted cash as presented in our consolidated statements of cash flows for all periods presented in Note 5. New Accounting Pronouncements. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” 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, or ROU, assets, and is effective for interim and annual reporting periods beginning after December 15, 2018, subject to early adoption. 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 adopted ASC 842 on January 1, 2019 utilizing the modified retrospective approach and selected this adoption date as our date of initial application. As a result, we do not plan to update financial information related to periods prior to January 1, 2019 nor do we plan to provide the disclosures required under ASC 842 for periods prior to January 1, 2019. The modified retrospective approach includes a package of optional practical expedients that we elected to apply. Among other things, these expedients permit us not to reassess prior conclusions regarding lease identification, lease classification and initial direct costs under the new standard. We also elected the allowable practical expedient that will permit us to use hindsight while performing evaluations of our leases. We expect that the adoption of this new standard will have a material effect on our consolidated financial statements. In addition to providing significant new disclosures regarding our leasing activities as required, we believe that the most significant impacts of the adoption of ASC 842 relate to: (i) our lease liabilities will increase by a range of approximately $385.0 million to $430.0 million primarily related to transmitter and receiver sites based on the present value of the remaining minimum rental payments utilizing the application of hindsight; and (ii) our ROU assets will increase by a range of approximately $325.0 million to $365.0 million ; and (iii) the derecognition of approximately $40.0 million in accrued liabilities related to lease exit costs that we previously recorded under ASC 420, "Exit Disposal Cost Obligations," in connection with the abandonment of certain transmitter and receiver sites. ASC 842 also provides practical expedients for certain ongoing accounting situations. We elected the short-term lease recognition and measurement exemption, which allows us not to recognize ROU assets or lease liabilities for all leases with a term of 12 months or less, including existing short-term leases of those assets in transition. We also elected the non-separation practical expedient that allows us not to separate lease and non-lease components for substantially all of our leases. We are continuing to evaluate each of the remaining additional effects the adoption of ASC 842 will have on our consolidated financial statements. Reclassifications. We have reclassified some prior period amounts in our consolidated financial statements to conform to our current presentation. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [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 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 December 31, 2018, we have $333.7 million of remaining performance obligations under open service contracts. For these service contracts, we expect to recognize $324.3 million in operating revenues in the period from January 1, 2019 through December 31, 2019 and $9.4 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 December 31, 2018 and January 1, 2018, Nextel Brazil had $2.5 million and $5.5 million in total contract assets, respectively, $2.0 million and $4.5 million of which we classified as a component of prepaid expenses and other in our consolidated balance sheet. 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 December 31, 2018 and January 1, 2018, Nextel Brazil had $2.0 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 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 December 31, 2018 and January 1, 2018, Nextel Brazil had $37.5 million and $42.8 million of deferred commissions, respectively, related to expenses required to obtain a contract. Of these total deferred commissions, as of December 31, 2018 and January 1, 2018, we recorded $21.5 million and $16.3 million , respectively, as a component of prepaid expenses and other and the remaining $16.0 million and $26.5 million , respectively, as a component of other assets in our consolidated balance sheet. In addition, Nextel Brazil recorded $17.3 million in total commissions expense during the year ended December 31, 2018 as a component of selling, general and administrative expenses in our consolidated statement of comprehensive loss. Adoption Impact. Following is a comparison of our reported results of operations for the year ended December 31, 2018 compared to amounts that we would have reported had we not adopted ASC 606 (in thousands): Year Ended December 31, 2018 As Reported With ASC 606 Without ASC 606 Impact Operating revenues Service and other revenues $ 605,492 $ 623,993 $ (18,501 ) Handset and accessory revenues 15,205 13,977 1,228 620,697 637,970 (17,273 ) Operating expenses Cost of service (exclusive of depreciation and amortization included below) 287,598 287,598 — Cost of handsets and accessories 18,571 18,571 — Selling, general and administrative 308,828 326,530 (17,702 ) Impairment, restructuring and other benefits, net 18,949 18,949 — Depreciation 15,119 15,119 — Amortization 13,497 13,497 — 662,562 680,264 (17,702 ) Operating loss $ (41,865 ) $ (42,294 ) $ 429 Net loss $ (194,660 ) $ (195,089 ) $ 429 Our basic and diluted net loss from continuing operations per common share would have remained the same without the adoption of ASC 606 on January 1, 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. |
Impairments, Restructuring and
Impairments, Restructuring and Other Charges, Net | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Impairments, Restructuring and Other Charges, Net | Impairment, Restructuring and Other Charges, Net Total impairment, restructuring and other charges, net for 2018, 2017 and 2016 were as follows (in thousands): Year Ended December 31, 2018 2017 2016 Brazil: Transmitter and receiver site lease restructuring costs (1) $ 40,004 $ 70,500 $ 10,804 Reversal of previously accrued restructuring charges - site swaps (2) (15,570 ) — — Radio access network, or RAN, sharing-related restructuring (reversals) charges, net (3) (9,434 ) 29,873 21,362 Severance 879 6,507 — Long-lived asset impairments (4) — 57,902 1,297,479 Other asset impairments (5) 2,718 9,316 10,965 $ 18,597 $ 174,098 $ 1,340,610 Corporate: Long-lived asset impairments (4) $ — $ — $ 41,040 Severance 352 1,148 2,792 Other restructuring charges — 112 369 $ 352 $ 1,260 $ 44,201 Total impairment, restructuring and other charges, net $ 18,949 $ 175,358 $ 1,384,811 _______________________________________ (1) These amounts primarily represented future lease costs for certain transmitter and receiver sites that were no longer required in Nextel Brazil's business. (2) 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 2018, Nextel Brazil identified approximately 360 transmitter and receiver sites that it plans to exchange pursuant to these arrangements, approximately 300 of which were completed in 2018. As a result, in 2018, we reversed $15.6 million of previously accrued restructuring charges related to these site exchanges. (3) The amount for 2018 represents the reversal of previously accrued restructuring charges in connection with the determination that, based on revised plans in 2018, approximately 400 transmitter and receiver sites related to Nextel Brazil's RAN sharing project will continue to be utilized. The amounts for 2017 and 2016 represent restructuring costs related to the determination that RAN sharing would no longer be utilized for approximately 700 and 600 transmitter and receiver sites, respectively. (4) During 2016, we reviewed our Nextel Brazil segment for potential impairment and compared the carrying value of Nextel Brazil's long-lived assets to our estimate of undiscounted future cash flows. Our estimate of undiscounted future cash flows was probability weighted and took into consideration our ability to obtain capital necessary to fund our business plan. In addition, we assumed that the proceeds from any potential sale of Nextel Brazil would be significantly less than its carrying value. Based on our estimates, we determined that the carrying value of our Nextel Brazil segment was not fully recoverable. As a result, we recorded a non-cash asset impairment charge of $1.34 billion to reduce the carrying values of Nextel Brazil's long-lived assets to their respective fair values. We estimated the fair value of our Nextel Brazil segment using a market approach based on our market capitalization and combined it with the fair value of our outstanding debt obligations to determine the impairment charge. See Note 8 for more information on our estimate of the fair value of our debt obligations. We allocated the non-cash asset impairment charge first to reduce the $36.8 million carrying value of our trademark intangible asset to zero, and the remainder between property, plant and equipment and spectrum licenses on a pro rata basis. In addition, during 2017, we reviewed our Nextel Brazil segment for potential impairment and determined that, as a result of the continued decline in share price, the carrying value of this segment was not fully recoverable. As a result, we recorded non-cash asset impairment charges of $57.9 million in 2017 to reduce the carrying values of Nextel Brazil's long-lived assets to their respective fair values. We estimated the fair value of our Nextel Brazil segment using the same approach applied in 2016 and allocated these impairment charges on a pro rata basis between property, plant and equipment and spectrum licenses. During 2018, we reviewed our Nextel Brazil segment for potential impairment and determined that its carrying value was recoverable. (5) These amounts primarily represent charges we recorded in connection with the abandonment of certain transmitter and receiver sites that are no longer required in Nextel Brazil's business. As of December 31, 2018, total accrued restructuring charges were as follows (in thousands): Balance, January 1, 2018 $ 107,306 Restructuring charges, net 16,231 Cash payments and other (32,455 ) Foreign currency translation adjustment (16,450 ) Balance, December 31, 2018 $ 74,632 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 12 Months Ended |
Dec. 31, 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 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 consolidated statements of cash flows now include restricted cash of $108.3 million , $111.9 million and $164.9 million as of December 31, 2018, 2017 and 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 consolidated balance sheets to cash, cash equivalents and restricted cash as reported in our consolidated statements of cash flows is as follows: December 31, 2018 2017 (in thousands) Cash and cash equivalents $ 142,486 $ 193,888 Cash in escrow (included in prepaid expenses and other) 106,089 110,024 Other (included in other assets) 2,164 1,866 Cash, cash equivalents and restricted cash $ 250,739 $ 305,778 Prepaid Expenses and Other. The components of our prepaid expenses and other are as follows: December 31, 2018 2017 (in thousands) Cash in escrow $ 106,089 $ 110,024 Judicial deposits 57,175 43,648 Value-added taxes 43,803 37,191 Deferred commissions (see Note 3) 21,460 — Cash collateral related to performance bonds 618 50,340 Other prepaid assets 9,381 14,231 Other current assets 7,390 8,583 $ 245,916 $ 264,017 Property, Plant and Equipment, Net. The components of our property, plant and equipment, net are as follows: December 31, 2018 2017 (in thousands) Land $ 417 $ 489 Building and leasehold improvements 650 935 Network equipment, communication towers and network software 108,876 82,493 Software, office equipment, furniture and fixtures and other 31,482 22,498 Less: Accumulated depreciation and amortization (26,858 ) (11,461 ) 114,567 94,954 Construction in progress 29,363 22,308 $ 143,930 $ 117,262 Intangible Assets, Net. Our intangible assets, net include the following: December 31, 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 $ 170,640 $ (11,387 ) $ 159,253 $ 186,983 $ (5,426 ) $ 181,557 Customer relationships 4 13,062 (10,159 ) 2,903 15,300 (5,100 ) 10,200 $ 183,702 $ (21,546 ) $ 162,156 $ 202,283 $ (10,526 ) $ 191,757 Based on the carrying amount of our intangible assets as of December 31, 2018 and current exchange rates, we estimate amortization expense for each of the next five years to be as follows (in thousands): Y ears Estimated Amortization Expense 2019 $ 9,814 2020 6,911 2021 6,911 2022 6,911 2023 6,911 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: December 31, 2018 2017 (in thousands) Judicial deposits $ 116,220 $ 110,758 Cash collateral related to contingencies 47,899 55,027 Deferred commissions (see Note 3) 16,037 — Other 51,023 54,224 $ 231,179 $ 220,009 Accrued Expenses and Other. The components of our accrued expenses and other are as follows: December 31, 2018 2017 (in thousands) Contingencies $ 74,111 $ 78,006 Network system and information technology 52,207 48,702 Non-income based taxes 37,817 30,044 Payroll related items and commissions 27,100 32,613 License fees 20,706 17,501 Other 87,049 101,263 $ 298,990 $ 308,129 Other Long-Term Liabilities. The components of our other long-term liabilities are as follows: December 31, 2018 2017 (in thousands) Non-current withholding taxes $ 78,440 $ 67,356 Accrued lease termination and other restructuring charges 67,125 90,128 Conversion option for convertible senior notes 33,577 — Accrued interest on Brazil spectrum financing 30,864 17,261 Other 39,049 43,845 $ 249,055 $ 218,590 Accumulated Other Comprehensive Loss. As of December 31, 2018 and 2017, the tax impact on our accumulated other comprehensive loss was not material. In addition, as of December 31, 2018 and 2017, all of our accumulated other comprehensive loss represented cumulative foreign currency translation adjustment. Supplemental Cash Flow Information. Year Ended December 31, 2018 2017 2016 (in thousands) Capital expenditures Cash paid for capital expenditures, including capitalized interest $ 60,942 $ 66,536 $ 61,291 Change in capital expenditures accrued and unpaid or financed, including accreted interest capitalized 3,284 (15,433 ) (9,984 ) $ 64,226 $ 51,103 $ 51,307 Interest costs Interest expense, net $ 100,513 $ 118,605 $ 113,732 Interest capitalized 1,669 1,669 283 $ 102,182 $ 120,274 $ 114,015 Cash paid for interest, net of amounts capitalized $ 67,361 $ 91,297 $ 105,636 In connection with the completion of the sale of Nextel Argentina to Grupo Clarin in January 2016, the $85.0 million promissory note that was initially issued in connection with this transaction was canceled. In addition, in 2016, we recorded $125.7 million as a component of long-term debt on our consolidated balance sheet in connection with our acquisition of 30MHz of spectrum in the 1.8 GHz band. Other than these two transactions, we did not have any significant non-cash investing or financing activities during the years ended December 31, 2018, 2017 and 2016. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In connection with the sale of Nextel Argentina and Nextel Mexico in 2015, as well as the sale of Nextel Peru in 2013, we have reported all activity related to these operating companies as discontinued operations. Unless otherwise noted, amounts included in these notes to our consolidated financial statements exclude amounts attributable to 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 December 31, 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, which are subject to an appeal. 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. As of December 31, 2018, we had accrued $5.3 million for probable losses associated with the audits. 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, and on February 11, 2019, our subsidiary NIU Holdings initiated review of this matter by the United States Bankruptcy Court for the Southern District of New York, which we refer to as the Bankruptcy Court, that approved the transaction with New Cingular Wireless in connection with our emergence from Chapter 11 bankruptcy. This difference of interpretation has been delaying and will continue to delay 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 remaining tax audits or indemnity claims. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The components of our debt are as follows: December 31, 2018 2017 (in thousands) Brazil equipment financing $ 238,380 $ 242,883 Brazil bank loans 169,946 200,567 Brazil spectrum financing 104,344 122,044 Convertible senior notes 72,264 — Brazil capital lease and tower financing obligations 69,273 90,213 Total debt 654,207 655,707 Less: current portion (21,350 ) (7,990 ) $ 632,857 $ 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, NII Holdings 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 the subsidiaries of NII Holdings, 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. For the fiscal quarter ended December 31, 2018, the closing sale price of our common stock did not exceed 130% of the conversion price of $6.21 per share for at least 20 trading days in the 30 consecutive trading days ending on December 31, 2018. As a result, the conversion contingency was not met as of December 31, 2018. 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 December 31, 2018, we have separated the value of the conversion feature from the notes and recorded the derivative liability at its fair value on our consolidated balance sheet. As of December 31, 2018, we recorded the $33.6 million fair value of the derivative liability as a component of other long-term liabilities in our consolidated balance sheet. Amendments to Brazil Equipment Financing and Brazil Bank Loans. In October 2017, Nextel Brazil entered into an amended and restated equipment financing and sixth amendments to its two bank loans with Brazilian lenders. In January 2018, we received final approval for the amended and restated equipment financing, at which point all of these amendments became effective. We accounted for these amendments as a non-substantial modification of debt and capitalized $6.1 million of financing costs that will be amortized over the new term of the loans. As a result of the amendments, the material financing terms in all three facilities were aligned. Among other changes, loans under these agreements have a 48 -month grace period from January 2018 for material repayments, a 50 -month material repayment term that begins in January 2022 and a final maturity of January 2026 for Nextel Brazil's bank loans and February 2026 for Nextel Brazil's equipment financing. These amendments also provide for a holiday for certain financial covenant compliance, including the net debt financial covenant, until June 30, 2020. In connection with these amendments, Nextel Brazil granted additional security interests to each of its lenders in the form of preferential rights to amounts held in certain of Nextel Brazil's bank accounts and pledged incremental equipment and property to these lenders. In addition, Nextel Brazil will be subject to monthly minimum cash and minimum receivable requirements. Nextel Holdings and certain of its subsidiaries agreed to make equity contributions to Nextel Brazil for 48 months from the effectiveness of the amendments in January 2018. Brazil Equipment Financing. In April 2012, Nextel Brazil entered into a U.S. dollar-denominated loan agreement with the China Development Bank, under which Nextel Brazil was able to borrow up to $500.0 million to finance infrastructure equipment and certain other costs related to the deployment of its WCDMA network. A portion of this financing has a floating interest rate based on LIBOR plus 2.90% (an all-in interest rate of 5.78% and 4.46% as of December 31, 2018 and 2017, respectively), and the remainder has a floating interest rate based on LIBOR plus 1.80% (an all-in interest rate of 4.68% and 3.36% as of December 31, 2018 and 2017, respectively). This financing is guaranteed by Nextel Holdings. In addition, the terms of this financing limit Nextel Brazil's ability to pay dividends and other upstream payments. Assets purchased using the amounts borrowed under Nextel Brazil's equipment financing are pledged as collateral. A portion of Nextel Brazil's accounts receivable is also pledged as collateral under its equipment financing. As of December 31, 2018, we had $243.4 million in principal amount outstanding under Nextel Brazil's equipment financing. Nextel Brazil does not have the ability to borrow additional amounts under this facility. Brazil Bank Loans. In December 2011, Nextel Brazil borrowed the equivalent of $341.2 million from a Brazilian bank. Because this loan is denominated in Brazilian reais, the payments for principal and interest will fluctuate in U.S. dollars based on changes in the exchange rate of the Brazilian real relative to the U.S. dollar. In October 2012, Nextel Brazil entered into an additional Brazilian real-denominated bank loan agreement, under which Nextel Brazil borrowed the equivalent of approximately $196.9 million . Prior to the effectiveness of the sixth amendments to these bank loans discussed above, both of these loan agreements had floating interest rates equal to 139.54% of the local Brazilian borrowing rate (an all-in interest rate of 9.63% as of December 31, 2017). As a result of the effectiveness of the loan amendments, both of the loan agreements have floating interest rates equal to 127.00% of the local Brazilian borrowing rate for 48 months from January 2018 (an all-in interest rate of 8.13% as of December 31, 2018). After this period elapses, the interest rates will return to 139.54% of the local Brazilian borrowing rate for the remainder of the loan period. A portion of Nextel Brazil's accounts receivable is pledged as collateral under these bank loans. As of December 31, 2018, we had $169.2 million in principal amount outstanding under Nextel Brazil's bank loans. Brazil Spectrum Financing. In December 2015, Nextel Brazil participated in a spectrum auction and was the successful bidder for 30 MHz of spectrum in the 1.8 GHz band for 455 million Brazilian reais, or approximately $116.7 million based on foreign currency exchange rates at the time. The spectrum license has an initial term of 15 years with an optional 15 -year renewal period. In July 2016, Nextel Brazil paid 45.5 million Brazilian reais, or approximately $14.0 million based on foreign currency exchange rates in effect at the time, in connection with the signing of this license agreement. The remaining 409.5 million Brazilian reais, or approximately $122.2 million based on foreign currency exchange rates at the time, plus accrued interest of 1% per month and annual inflationary adjustments, is due in six annual installments, beginning in July 2019. We are required to pay approximately $25.8 million in principal and interest related to the first annual payment under this financing in July 2019. Capital Leases and Tower Financing Obligations. Site-Related Capital Lease Obligations. We have entered into various agreements under which we are entitled to lease space on towers or other structures owned by third parties and to install our transmitter and receiver equipment in that space. Tower Financing Obligations. From 2002 to 2008, we sold and subsequently leased back space on certain transmitter and receiver sites in Brazil. Due to our continuing involvement with these properties, we account for these transactions as financing arrangements. As a result, we did not recognize any gains from the sales of these towers under these arrangements, and we maintain the tower assets on our consolidated balance sheets. In addition, we recognized the proceeds received as financing obligations. We recognize ground rent payments as operating expenses in cost of service and tower base rent payments as interest expense and a reduction in the financing obligation using the effective interest method. In addition, we recognize co-location rent payments made by the third party lessees to the owner of the site as other operating revenues because of our continuing involvement with the tower assets. During the years ended December 31, 2018 , 2017 and 2016, we recognized $4.6 million , $8.1 million and $7.7 million , respectively, in other operating revenues related to these co-location lease arrangements. Debt Maturities. For the years subsequent to December 31, 2018 , scheduled annual maturities of all debt outstanding are as follows (in thousands): Year Principal Repayments 2019 $ 22,007 2020 22,717 2021 22,800 2022 117,553 2023 233,108 Thereafter 296,323 Total $ 714,508 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Available-for-Sale Securities. As of December 31, 2018 and 2017 , available-for-sale securities held by Nextel Brazil included $32.3 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 years ended December 31, 2018, 2017 and 2016, 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: December 31, 2018 2017 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (in thousands) Brazil equipment financing $ 238,380 $ 233,581 $ 242,883 $ 237,958 Bank bank loans 169,946 119,218 200,567 144,312 Brazil spectrum financing 104,344 123,531 122,044 128,225 Convertible senior notes 72,264 80,704 — — $ 584,934 $ 557,034 $ 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 2018, we recorded a gain of $8.2 million as a component of other expense, net in our 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 consolidated balance sheets approximate their fair values due to the short-term nature of these instruments. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Capital and Operating Lease Commitments. We have co-location capital lease obligations on some of our transmitter and receiver sites in Brazil. See Note 7 for further information regarding these agreements. We lease various cell sites, office facilities and other assets under operating leases. Some of these leases provide for annual increases in our rent payments based on changes in locally-based consumer price indices. The remaining terms of our cell site leases range from less than one to fifteen years and are generally renewable for additional terms. The remaining terms of our office leases range from less than one to ten years. For the years ended December 31, 2018 and 2017, total rent expense under operating leases was $137.4 million and $178.5 million , respectively, of which approximately $47.3 million and $63.2 million , related to rent payments for certain transmitter and receiver sites that Nextel Brazil is not fully utilizing. In addition, for the year ended December 31, 2016, total rent expense under operating leases was $164.6 million . For years subsequent to December 31, 2018 , future minimum payments for all capital and operating lease obligations that have initial or remaining noncancelable lease terms exceeding one year, net of rental income, are as follows (in thousands): Capital Leases Operating Leases Total 2019 $ 34,400 $ 106,922 $ 141,322 2020 33,959 101,228 135,187 2021 33,294 96,719 130,013 2022 31,644 86,120 117,764 2023 30,589 72,808 103,397 Thereafter 453,634 628,449 1,082,083 Total minimum lease payments 617,520 1,092,246 1,709,766 Less: imputed interest (551,535 ) — (551,535 ) Total $ 65,985 $ 1,092,246 $ 1,158,231 The amounts included in the table above are presented net of taxes of approximately 10% for all periods. Brazil RAN Sharing Commitment. In May 2016, Nextel Brazil entered into an amendment to a nationwide roaming voice and data services agreement with Telefonica Brazil, S.A., or Telefonica, to reduce the usage rates for roaming traffic. Concurrently, Nextel Brazil entered into a 10 -year RAN sharing agreement with Telefonica, under which Telefonica will permit Nextel Brazil to use some of its tower and equipment infrastructure to transmit telecommunications signals on Nextel Brazil's spectrum. 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. Nextel Brazil was required to prepay 250 million Brazilian reais, or approximately $76.9 million based on foreign currency exchange rates at the time, shortly after the agreements became effective with receipt of regulatory approvals, which occurred in August 2016. We are allocating the aggregate 800 million Brazilian reais in minimum payments on a relative fair value basis to the services being received. We are recognizing approximately 318 million Brazilian reais on a ratable basis over a period of five years for the amended roaming agreement, which began in August 2016, and approximately 482 million Brazilian reais over a period of approximately seven years for the RAN sharing agreement, which began in October 2016. In 2017, Nextel Brazil recorded approximately 116 million Brazilian reais, or approximately $36.9 million based on foreign currency exchange rates at the time, of the total 482 million Brazilian reais related to the RAN sharing agreement as a component of restructuring costs as a result of a change in the scope of this arrangement. As of December 31, 2018, Nextel Brazil had 199 million Brazilian reais, or $51.3 million based on current foreign currency exchange rates, in remaining commitments related to its roaming agreement and 247 million Brazilian reais, or $63.7 million based on current foreign currency exchange rates, in remaining commitments related to its RAN sharing agreement. Equipment, Handsets and Other Commitments. We are a party to purchase agreements with various suppliers, under which we have committed to purchase equipment, network services and handsets that will be used or sold in the ordinary course of business. As of December 31, 2018, we are committed to purchase $89.3 million in total under these arrangements, which includes amounts related to the RAN sharing agreement discussed above, $48.8 million of which we are committed to pay in 2019 and $40.5 million of which we are committed to pay in 2020 and 2021 combined. These amounts do not represent our entire anticipated purchases in the future, but represent only those items that are the subject of contractual obligations. Our commitments are generally determined based on noncancelable quantities or termination amounts. We also purchase products and services as needed with no firm commitment. Amounts actually paid under some of these agreements will likely be higher due to variable components of these agreements. The more significant variable components that determine the ultimate obligation owed include such items as hours contracted, subscribers and other factors. In addition, we are a party to various arrangements that are conditional in nature and obligate us to make payments only upon the occurrence of certain events, such as the delivery of functioning software or a product. Contingencies. Nextel Brazil has received various assessment notices from municipal, state and federal Brazilian authorities asserting deficiencies in payments related primarily to value-added taxes and other non-income based taxes. Nextel Brazil has filed various administrative and legal petitions disputing these assessments. In some cases, Nextel Brazil has received favorable decisions, which are currently being appealed by the respective governmental authority. In other cases, Nextel Brazil's petitions have been denied, and Nextel Brazil is currently appealing those decisions. 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 December 31, 2018 and 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 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 December 31, 2018 and 2017 , Nextel Brazil had accrued liabilities of $76.3 million and $81.2 million , respectively, related to contingencies, of which $6.7 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 $890.0 million as of December 31, 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 | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss from continuing operations before income taxes and the related income tax benefit are as follows (in thousands): Year Ended December 31, 2018 2017 2016 U.S. $ (13,706 ) $ (41,143 ) $ (53,843 ) Non-U.S. (172,540 ) (305,631 ) (1,482,928 ) Total $ (186,246 ) $ (346,774 ) $ (1,536,771 ) Year Ended December 31, 2018 2017 2016 Current: Federal $ — $ — $ — Foreign — 5,779 (291 ) Total current income tax benefit (provision) — 5,779 (291 ) Deferred: Federal — — 2,864 State, net of Federal tax benefit — — 319 Foreign — 568 — Total deferred income tax benefit — 568 3,183 Total income tax benefit $ — $ 6,347 $ 2,892 A reconciliation of the U.S. statutory Federal income tax rate to our effective tax rate as a percentage of loss from continuing operations before income tax benefit is as follows: Year Ended December 31, 2018 2017 2016 Statutory Federal tax rate 21% 35% 35% Effect of foreign operations 7 — (2) Effect of statutory Federal tax rate change on deferred tax asset — (37) — Change in deferred tax asset valuation allowance (20) 16 (32) Effect of permanent differences (6) (12) — Other, net (2) — (1) Effective tax rate — 2% — The components of our deferred tax assets and liabilities consist of the following: December 31, 2018 2017 (in thousands) Deferred tax assets: Net operating losses and capital loss carryforwards $ 6,296,017 $ 6,509,165 Allowance for doubtful accounts 8,248 20,122 Accrued expenses 78,786 53,867 Accrual for contingent liabilities 25,753 27,016 Intangible assets 88,603 121,122 Property, plant and equipment 82,760 143,701 Leasing related activity 21,851 27,519 Equity compensation 1,333 1,151 Long term debt 46,722 55,146 Inventory reserve 440 717 Other 352 1,004 6,650,865 6,960,530 Valuation allowance (6,622,915 ) (6,957,569 ) Total deferred tax asset 27,950 2,961 Deferred tax liabilities: Other 13,505 2,432 Deferred commissions 13,993 — Total deferred tax liability 27,498 2,432 Net deferred tax asset $ 452 $ 529 As of December 31, 2018, we had $1.4 billion of net operating loss carryforwards for U.S. Federal and state income tax purposes, most of which expire in various amounts beginning in 2027 through 2037. Of the amount generated in 2018, $28.0 million has no expiration as a result of the Tax Cuts and Jobs Act, or the Tax Act, enacted in December 2017 and described below. Due to our emergence from bankruptcy on June 26, 2015, the timing and manner in which we will utilize our net operating loss carryforwards in any year will be limited based on changes in our ownership. The annual limitation is $40.2 million . As a result, some of our net operating loss carryforwards will expire before we are able to use them in the future. Also as a result of this limitation, our net operating loss carryforwards for U.S. Federal and state income tax purposes are $926.6 million . Further, we identified a risk that an ownership change may have occurred in 2018 and are currently evaluating this situation. As part of this evaluation, we will seek information concerning our 5% shareholders pertaining to their economic ownership. To the extent an ownership change is ultimately determined to have occurred, the annual utilization of our net operating losses may be subject to additional limitations. Any reduction to our net operating loss deferred tax asset due to an increased limitation is expected to result in an offsetting reduction in valuation allowance. Therefore, at this time, we anticipate that any limitation will not have a material impact on our consolidated results of operations. However, as we are still evaluating this potential ownership change and are seeking additional information from shareholders, the final impact of any additional limitation has not been determined. As of December 31, 2018 , our Brazilian subsidiaries had $2.1 billion of net operating loss carryforwards that can be carried forward indefinitely, but the amount that we can utilize annually is limited to 30% of Brazilian taxable income before the net operating loss deduction. Our foreign subsidiaries' ability to utilize the foreign tax net operating losses in any single year ultimately depends upon their ability to generate sufficient taxable income. As of December 31, 2018, our holding companies in Luxembourg each had net operating losses ranging from $3.4 billion to $8.7 billion . The net operating losses incurred prior to 2017 can be carried forward indefinitely and those incurred in 2017 and 2018 can be carried forward 17 years. Our holding companies in Spain had $923.2 million of net operating loss carryforwards that can be carried forward indefinitely. Given the nature of activities that are considered taxable in these jurisdictions and the activities engaged in by the holding companies, these net operating loss carryforwards will never be utilized by our holding companies. The deferred tax asset valuation allowances that our subsidiaries and holding companies had as of December 31, 2018 and 2017 are as follows: 2018 2017 (in millions) Brazil $ 1,020.4 $ 1,162.5 U.S. 243.1 240.4 Luxembourg 5,128.6 5,313.7 Spain 230.8 241.0 Total $ 6,622.9 $ 6,957.6 The realization of deferred tax assets is dependent on the generation of future taxable income sufficient to realize our tax loss carryforwards and other tax deductions. Valuation allowances are required to be recognized on deferred tax assets unless it is determined that it is “more-likely-than-not” that the asset will be realized. As of December 31, 2018 , w e continued to record full valuation allowances on the deferred tax assets of our foreign operating companies, our U.S. parent company and subsidiaries and our foreign holding companies due to substantial negative evidence, including the recent history of cumulative losses and the projected losses for 2019 and subsequent years. We are subject to income taxes in both the U.S. and the non-U.S. jurisdictions in which we operate and to potential examination by the relevant tax authorities. The earliest years that remain subject to examination by jurisdiction are: U.S. - 2007; Brazil - 2013, and Luxembourg, Netherlands and Spain - 2009. We regularly assess the potential outcome of future examinations in each of the taxing jurisdictions when determining the adequacy of our provision for income taxes. We have only recorded financial statement benefits for tax positions which we believe reflect the “more-likely-than-not” criteria incorporated in the authoritative guidance on accounting for uncertainty in income taxes, and we have established income tax accruals in accordance with this authoritative guidance where necessary. Once a financial statement benefit for a tax position is recorded or a tax accrual is established, we adjust it only when there is more information available or when an event occurs necessitating a change. While we believe that the amounts of the recorded financial statement benefits and tax accruals reflect the more-likely-than-not criteria, it is possible that the ultimate outcome of current or future examinations may result in a reduction to the tax benefits previously recorded on the financial statements or may exceed the current income tax accruals in amounts that could be material. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to: (1) reducing the U.S. Federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; and (3) requiring a current inclusion in U.S. Federal taxable income of certain earnings of controlled foreign corporations, known as global intangible low-taxed income. As a result of the reduction in the U.S. Federal tax rate to 21%, which was effective January 1, 2018, we adjusted our net deferred tax assets and corresponding valuation allowance as of December 31, 2017 at the 21% tax rate with no impact to income tax expense. In addition, we determined that no tax liability needed to be recorded for the one-time transition tax as our international subsidiaries have negative cumulative foreign earnings, and we elected to treat the tax on global intangible low-taxed income as an expense in the period in which we become liable for this tax and are not currently recording a deferred tax liability for this item. In accordance with Staff Accounting Bulletin, or SAB No. 118, “ Income Tax Accounting Implications of the Tax Cuts and Jobs Act, ” our measurement period is now closed with respect to the above items and there were no changes to our preliminary conclusions regarding the treatment of these items in our consolidated financial statements. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Common Stock. Holders of our common stock are entitled to one vote per share on all matters submitted for action by the stockholders and share equally, share for share, if dividends are declared on the common stock. If our Company is partially or completely liquidated, dissolved or wound up, whether voluntarily or involuntarily, the holders of the common stock are entitled to share ratably in the net assets remaining after payment of all liquidation preferences, if any, applicable to any outstanding preferred stock. There are no redemption or sinking fund provisions applicable to the common stock. Undesignated Preferred Stock. Our Board of Directors has the authority to issue undesignated preferred stock of one or more series and in connection with the creation of such series, to fix by resolution the designation, voting powers, preferences and relative, participating, optional and other special rights of such series, and the qualifications, limitations and restrictions thereof. As of December 31, 2018 , we had not issued any shares of undesignated preferred stock. Common Stock Reserved for Issuance. In connection with our emergence from Chapter 11, our Board of Directors adopted an incentive compensation plan, which contemplates grants of up to 5,263,158 shares of our common stock to directors and employees of the reorganized company, including potential grants of restricted stock, restricted stock units and options to purchase shares of our common stock. Under the 2015 Incentive Compensation Plan, we had 582,277 shares of our common stock reserved for future issuance as of December 31, 2018. |
Employee Stock and Benefit Plan
Employee Stock and Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Employee Stock and Benefit Plans | Employee Stock and Benefit Plans Our existing incentive compensation plan, which we refer to as the 2015 Incentive Compensation Plan, provides us with the ability to award stock options, restricted stock, restricted stock units, and cash-based incentives to our employees, directors and officers. In addition, the 2015 Incentive Compensation Plan contemplates grants of up to 5,263,158 shares of our common stock to directors and employees of the reorganized company, including potential grants of restricted stock, restricted stock units and options to purchase shares of our common stock. All grants or awards made under the 2015 Incentive Compensation Plan are governed by written agreements between us and the participants and have a maximum term of ten years. On June 26, 2015, which was the date of our emergence from Chapter 11, we made grants of 564,311 shares of restricted stock, 41,721 restricted stock units and 1,580,208 options to purchase shares of common stock. Subsequent to this date, we made grants of an additional 2,951,875 shares of restricted stock and 6,071,457 options to purchase shares of common stock. Stock options, restricted stock awards and restricted stock units are also granted to certain new employees on the later of the date of hire or the date that the grant is approved. Stock Option Awards For the years ended December 31, 2018 , 2017 and 2016, we recognized $0.8 million , $2.6 million and $2.8 million , respectively, in share-based compensation expense related to stock options. The amounts recognized in our consolidated statements of comprehensive loss for tax benefits related to share-based payment arrangements in 2018, 2017 and 2016 were not material. We include substantially all share-based compensation expense as a component of selling, general and administrative expenses. As of December 31, 2018 , there was $0.9 million in unrecognized compensation cost related to non-vested employee stock option awards. We expect this cost to be recognized over a weighted average period of 2.17 years. In 2018, we had $2.2 million in cash paid for exercises under all share-based payment arrangements. The amount of cash paid for exercises under all share-based payment arrangements was immaterial for 2017 and 2016. As a result of our emergence from Chapter 11 proceedings, all prior stock option awards granted under the 2012 Incentive Compensation Plan were canceled. Our stock options generally vest thirty-three percent per year over a three -year period. The following table summarizes stock option activity under the 2015 Incentive Compensation Plan: Number of Options Weighted Average Exercise Price per Option Weighted Average Remaining Life Aggregate Intrinsic Value Outstanding, December 31, 2017 3,357,698 $ 3.16 8.83 Granted 1,000,000 $ 2.19 Exercised (552,363 ) $ 4.00 Forfeited (832,702 ) $ 3.14 Outstanding, December 31, 2018 2,972,633 $ 2.69 8.41 $ 823,695 Exercisable, December 31, 2018 818,634 $ 6.01 7.22 $ 207,454 As of December 31, 2018, our vested stock options had an intrinsic value of $823,695 . Generally, our stock options are non-transferable, except by will or laws of descent or distribution, and the actual value of the stock options that a recipient may realize, if any, will depend on the excess of the market price on the date of exercise over the exercise price. If a participant's employment is terminated without cause prior to the date options are available to be exercised, the participant will receive stock options on a pro-rata basis based on the fraction of the performance period that has elapsed from the beginning of the performance period until the participant's termination. If the participant does not exercise the pro-rata shares within 90 days of the employee's termination, the options are considered forfeited and are available for reissuance under the terms of the 2015 Incentive Compensation Plan. The weighted average fair value of the stock option awards on their grant dates using the Black-Scholes-Merton option-pricing model were $0.84 , $0.22 and $1.48 for each option granted during the years ended December 31, 2018 , 2017 and 2016, based on the following assumptions: Year Ended December 31, 2018 2017 2016 Risk free interest rate 1.53% 1.53% 1.53% - 1.90% Expected stock price volatility 40.87% 40.87% 40.71% - 40.87% Expected term in years 5.16 5.16 5.16 Expected dividend yield — — — The expected term of stock option awards granted represents the period that we expect our stock option awards will be outstanding and was determined based on a Monte Carlo model of stock prices and option disposition intensity. The intensity is based on models of stock price path, time dependent suboptimal voluntary exercise and post-vest termination. The risk free interest rate for the grant date of options granted is consistent with the zero-coupon U.S. Treasury rate curve. Expected volatility takes into consideration a blended historical and implied volatility of comparable companies' option contracts. Restricted Stock and Restricted Stock Unit Awards For the years ended December 31, 2018 , 2017 and 2016, we recognized $3.2 million , $2.0 million and $3.4 million , respectively, in share-based compensation expense related to restricted stock and restricted stock units. The amounts recognized in our consolidated statements of comprehensive loss for tax benefits related to share-based payment arrangements for the years ended December 31, 2018, 2017 and 2016 were not material. We include substantially all share-based compensation expense as a component of selling, general and administrative expenses. As of December 31, 2018, restricted stock represented both non-vested restricted stock awards and restricted stock units. Our restricted stock awards generally vest thirty-three percent per year over a three -year period. The following table summarizes restricted stock activity under the 2015 Incentive Compensation Plan, for the year ended December 31, 2018: Number of Shares Weighted Average Grant Date Fair Value Per Share Restricted stock awards as of December 31, 2017 97,350 $ 15.99 Granted 2,483,806 $ 4.15 Vested (524,282 ) $ 4.69 Forfeited (2,447 ) $ 16.00 Restricted stock awards as of December 31, 2018 2,054,427 $ 4.56 If a participant's employment is terminated without cause prior to the vesting dates, the participant will receive restricted stock on a pro-rata basis based on the fraction of the performance period that has elapsed from the beginning of the performance period until the participant's termination. Any unvested shares are forfeited and available for reissuance under the terms of the 2015 Incentive Compensation Plan. The fair value of our restricted stock is determined based on the quoted price of our common stock at the grant date. As of December 31, 2018 , there was $7.7 million in unrecognized compensation cost related to restricted stock. We expect this cost to be recognized over a weighted average period of 2.48 years. For the year ended December 31, 2018, the value of our vested restricted stock awards was immaterial. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have determined our reportable segment based on our method of internal reporting, which disaggregates our business by geographic location. We evaluate performance and provide resources to it based on operating income before depreciation, amortization and impairment, restructuring and other charges, net, which we refer to as segment earnings. Nextel Brazil is our only reportable segment. Brazil Corporate and Eliminations Consolidated (in thousands) Year Ended December 31, 2018 Operating revenues $ 620,675 $ 22 $ 620,697 Segment earnings (losses) $ 23,004 $ (17,304 ) $ 5,700 Less: Impairment, restructuring and other charges, net (18,949 ) Depreciation and amortization (28,616 ) Foreign currency transaction losses, net (49,008 ) Interest expense and other, net (95,373 ) Loss from continuing operations before income tax benefit $ (186,246 ) Capital expenditures $ 64,226 $ — $ 64,226 Year Ended December 31, 2017 Operating revenues $ 870,588 $ 106 $ 870,694 Segment losses $ (25,942 ) $ (24,174 ) $ (50,116 ) Less: Impairment, restructuring and other charges, net (175,358 ) Depreciation and amortization (35,446 ) Foreign currency transaction losses, net (1,271 ) Interest expense and other, net (84,583 ) Loss from continuing operations before income tax benefit $ (346,774 ) Capital expenditures $ 51,103 $ — $ 51,103 Year Ended December 31, 2016 Operating revenues $ 984,878 $ 168 $ 985,046 Segment earnings (losses) $ 67,186 $ (36,821 ) $ 30,365 Less: Impairment, restructuring and other charges, net (1,384,811 ) Depreciation and amortization (172,383 ) Foreign currency transaction gains, net 76,615 Interest expense and other, net (86,557 ) Loss from continuing operations before income tax benefit $ (1,536,771 ) Capital expenditures $ 51,307 $ — $ 51,307 December 31, 2018 Identifiable assets $ 857,385 $ 202,445 $ 1,059,830 December 31, 2017 Identifiable assets $ 965,919 $ 147,603 $ 1,113,522 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (Unaudited) First Second Third Fourth (in thousands, except per share amounts) 2018 Operating revenues $ 181,241 $ 156,008 $ 141,737 $ 141,711 Operating (loss) income (13,293 ) (20,292 ) 1,345 (9,625 ) Net (loss) income from continuing operations (42,031 ) (96,626 ) (49,721 ) 2,132 Net loss from discontinued operations (121 ) (2,662 ) (163 ) (5,468 ) Net (loss) income from continuing operations, per common share, basic $ (0.42 ) $ (0.96 ) $ (0.50 ) $ 0.02 Net loss from discontinued operations, per common share, basic $ — $ (0.03 ) $ — $ (0.06 ) Net (loss) income from continuing operations, per common share, diluted $ (0.42 ) $ (0.96 ) $ (0.50 ) $ 0.02 Net loss from discontinued operations, per common share, diluted $ — $ (0.03 ) $ — $ (0.06 ) First Second Third Fourth (in thousands, except per share amounts) 2017 Operating revenues $ 250,955 $ 225,134 $ 205,423 $ 189,182 Operating loss (79,849 ) (68,931 ) (74,432 ) (37,708 ) Net loss from continuing operations (92,675 ) (87,467 ) (85,488 ) (74,797 ) Net (loss) income from discontinued operations (38 ) 2,697 (92 ) (1,562 ) Net loss from continuing operations, per common share, basic $ (0.92 ) $ (0.87 ) $ (0.85 ) $ (0.75 ) Net income (loss) from discontinued operations, per common share, basic $ — $ 0.02 $ — $ (0.02 ) Net loss from continuing operations, per common share, diluted $ (0.92 ) $ (0.87 ) $ (0.85 ) $ (0.75 ) Net income (loss) from discontinued operations, per common share, diluted $ — $ 0.02 $ — $ (0.02 ) The sum of the per share amounts do not equal the annual amounts due to changes in the number of weighted average common shares outstanding during the year. As a result of the revision of prior period financial statements, we corrected certain errors by making immaterial corrections to the unaudited interim financial information presented above for the first and second quarters of 2018, as well as to the third and fourth quarters of 2017. See Note 1 for more information regarding this revision of prior period financial statements. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of the Registrant | NII HOLDINGS, INC. CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY) (in thousands) December 31, December 31, ASSETS Current assets Cash and cash equivalents $ 91,046 $ 28,167 Prepaid expenses and other 334 104 Total current assets 91,380 28,271 Long-term intercompany receivables 15 15 Other assets 2 2 Total assets $ 91,397 $ 28,288 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities Short-term intercompany payables $ 1,439 $ 1,439 Accrued expenses and other 1,887 — Total current liabilities 3,326 1,439 Long-term debt 72,264 — Other long-term liabilities 197,376 138,037 Total liabilities 272,966 139,476 Total deficit (181,569 ) (111,188 ) Total liabilities and stockholders’ deficit $ 91,397 $ 28,288 NII HOLDINGS, INC. CONDENSED STATEMENTS OF COMPREHENSIVE LOSS (PARENT COMPANY ONLY) (in thousands) Year Ended December 31, 2018 2017 2016 Operating revenues $ — $ — $ — Operating expenses Selling, general and administrative 54 — — Impairment, restructuring and other charges, net — — 36,839 Depreciation and amortization — — 1,116 54 — 37,955 Operating loss (54 ) — (37,955 ) Other (expense) income Interest expense, net (4,207 ) — — Intercompany interest expense — — (117,078 ) Intercompany interest income 1,101 231 197 Equity in loss of affiliates (146,344 ) (292,240 ) (1,401,998 ) Other income (expense), net 6,424 (1,138 ) (206 ) (143,026 ) (293,147 ) (1,519,085 ) Loss before income tax benefit (143,080 ) (293,147 ) (1,557,040 ) Income tax benefit — — 3,183 Net loss from continuing operations (143,080 ) (293,147 ) (1,553,857 ) Loss from discontinued operations, net of income taxes — — (16 ) Net loss $ (143,080 ) $ (293,147 ) $ (1,553,873 ) Comprehensive loss, net of income taxes Foreign currency translation adjustment $ 38,804 $ 7,360 $ 169,785 Other comprehensive income 38,804 7,360 169,785 Net loss (143,080 ) (293,147 ) (1,553,873 ) Total comprehensive loss $ (104,276 ) $ (285,787 ) $ (1,384,088 ) NII HOLDINGS, INC. CONDENSED STATEMENTS OF CASH FLOWS (PARENT COMPANY ONLY) (in thousands) Year Ended December 31, 2018 2017 2016 Cash flows from operating activities: Net loss $ (143,080 ) $ (293,147 ) $ (1,553,873 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities 104,103 277,065 1,554,075 Net cash (used in) provided by operating activities (38,977 ) (16,082 ) 202 Cash flows from investing activities: Investments in subsidiaries (10,043 ) (10,043 ) (36,356 ) Return of investments in subsidiaries 162 162 34,260 Other, net — — (16 ) Net cash used in investing activities (9,881 ) (9,881 ) (2,112 ) Cash flows from financing activities: Gross proceeds from issuance of convertible notes 115,000 — — Payments of debt financing costs (3,292 ) — — Other, net 29 29 — Net cash provided by financing activities 111,737 29 — Net increase (decrease) in cash, cash equivalents and restricted cash 62,879 (25,934 ) (1,910 ) Cash, cash equivalents and restricted cash, beginning of year 28,167 54,101 56,011 Cash, cash equivalents and restricted cash, end of year $ 91,046 $ 28,167 $ 54,101 1. Basis of Presentation NII Holdings, our parent company, is a holding company that conducts substantially all of its business operations through Nextel Brazil. See Note 1 to our consolidated financial statements for more information. As specified in Nextel Brazil's local financing agreements, there are restrictions on the parent company's ability to obtain funds from certain of its subsidiaries through dividends, loans or advances. These condensed financial statements have been presented on a “parent company only” basis. In accordance with this parent company only presentation, we have presented our parent company's investments in consolidated subsidiaries under the equity method. These condensed parent company only financial statements should be read in conjunction with our consolidated financial statements included elsewhere herein. 2. Dividends From Subsidiaries For the year ended December 31, 2016, NII Holdings' consolidated subsidiaries declared and paid $33.9 million in cash dividends to the parent company. NII Holdings' consolidated subsidiaries did not declare any dividends to the parent company during the years ended December 31, 2018 and 2017. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Year Charged to Costs and Expenses Deductions and Other Adjustments (1) Balance at End of Year Year Ended December 31, 2018 Allowance for doubtful accounts $ 42,011 $ 36,042 $ (58,416 ) $ 19,637 Valuation allowance for deferred tax assets $ 6,957,569 $ (164,607 ) $ (170,047 ) $ 6,622,915 Year Ended December 31, 2017 Allowance for doubtful accounts $ 54,221 $ 76,518 $ (88,728 ) $ 42,011 Valuation allowance for deferred tax assets $ 6,945,044 $ 28,637 $ (16,112 ) $ 6,957,569 Year Ended December 31, 2016 Allowance for doubtful accounts $ 39,033 $ 77,883 $ (62,695 ) $ 54,221 Valuation allowance for deferred tax assets $ 5,290,813 $ 1,555,006 $ 99,225 $ 6,945,044 _______________________________________ (1) Includes the impact of foreign currency translation adjustments. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or the U.S., requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results to be reported in future periods could differ from our estimates. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of NII Holdings and our subsidiaries. Our decision to consolidate an entity is based on our control of the entity through direct and indirect majority interest in the entity. We eliminate all intercompany transactions, including intercompany profits and losses, in consolidation. |
Concentrations of Risk | Concentrations of Risk. Substantially all of our revenues are generated from our operations located in Brazil. Regulatory entities in Brazil regulate the licensing, construction, acquisition, ownership and operation of our networks, and certain other aspects of our business, including some of the rates we charge our subscribers. Changes in the current telecommunications statutes or regulations in Brazil could adversely affect our business. In addition, as of December 31, 2018, 81% of our total assets were owned by Nextel Brazil. Political, financial and economic developments in Brazil could impact the recoverability of our assets. Financial instruments that potentially subject us to significant amounts of credit risk consist of cash, cash equivalents, short-term investments and accounts receivable. Our cash and cash equivalents are deposited with high-quality financial institutions. At times, we maintain cash balances in excess of Federal Deposit Insurance Corporation (or the foreign country equivalent institution) limits. Our short-term investments are composed of certain investments made by Nextel Brazil. See Note 8 for further information. Our accounts receivable are generally unsecured. We routinely assess the credit worthiness of our subscribers and maintain allowances for probable losses, where necessary. |
Foreign Currency | Foreign Currency. We translate Nextel Brazil's results of operations from Brazilian reais to U.S. dollars using average exchange rates during the relevant period, while we translate assets and liabilities at the exchange rate in effect at the reporting date. We translate equity balances at historical rates. We report the resulting gains or losses from translating foreign currency financial statements as other comprehensive income or loss. In general, monetary assets and liabilities held by Nextel Brazil that are denominated in U.S. dollars give rise to realized and unrealized foreign currency transaction gains and losses, which we record in our consolidated statement of comprehensive loss as foreign currency transaction gains or losses. We report the effects of changes in exchange rates associated with certain U.S. dollar-denominated intercompany loans and advances to our foreign subsidiaries that are of a long-term investment nature as other comprehensive income or loss in our consolidated financial statements. We have determined that certain U.S. dollar-denominated intercompany loans and advances to Nextel Brazil are of a long-term investment nature. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents, except for certain certificates of deposit in Brazil that are redeemable on demand. We classify these certificates of deposit as short-term investments. Cash equivalents primarily consist of money market funds and other similarly structured funds. |
Short-Term Investments | Short-Term Investments. We classify investments in debt securities as available-for-sale as of the balance sheet date and report them at fair value. We record unrealized gains and losses, net of income tax, as other comprehensive income or loss. We report realized gains or losses, as determined on a specific identification basis, and other-than-temporary declines in value, if any, in net other expense in our consolidated statement of comprehensive loss. See Note 8 for additional information. |
Handset and Accessory Inventory | Handset and Accessory Inventory. We record handsets and accessories at the lower of cost or their net realizable value. We determine cost by the weighted average costing method. We expense handset costs at the time of sale and classify such costs in cost of handsets and accessories. Inventory cost includes amounts associated with non-income based taxes. We analyze the net realizable value of handset and accessory inventory on a periodic basis. This analysis includes an assessment of the obsolescence of individual devices, our sales forecasts and other factors. |
Property, Plant and Equipment | Property, Plant and Equipment. We record property, plant and equipment, including improvements that extend useful lives or enhance functionality, at cost, while we charge maintenance and repairs to expense as incurred. We capitalize internal and external costs incurred to develop internal-use software, which consist primarily of costs related to configuration, interfaces, installation and testing. We also capitalize internal and external costs incurred to develop specified upgrades and enhancements if they result in significant additional functionalities for our existing software. We expense all costs related to evaluation of software needs, data conversion, training, maintenance and other post-implementation operating activities. We calculate depreciation using the straight-line method based on estimated useful lives ranging from 3 to 30 years for network equipment, communication towers and network software and 3 to 10 years for software, office equipment, furniture and fixtures, and other, which includes non-network internal use software. We include depreciation expense on our capital leases in accumulated depreciation. We amortize leasehold improvements over the shorter of the lease terms or the useful lives of the improvements. Construction in progress includes internal and external labor, materials, transmission and related equipment, engineering, site development, interest and other costs relating to the construction and development of our wireless network. We do not depreciate assets under construction until they are ready for their intended use. We capitalize interest and other costs, including labor and software upgrades, which are applicable to the construction of, and significant improvements that enhance functionality to, our network equipment. |
Asset Retirement Obligations | Asset Retirement Obligations. We record an asset retirement obligation, or ARO, and an associated asset retirement cost, or ARC, when we have a legal obligation in connection with the retirement of tangible long-lived assets. Our obligations arise from certain of our leases and relate primarily to the cost of removing our communication towers and network equipment from leased sites. We recognize an ARO, and the associated ARC, in the period in which it is incurred at fair value computed using discounted cash flow techniques. The liability is then accreted over time until the obligation is settled and the ARC is depreciated over the useful life of the related assets. We make adjustments for changes to either the timing or amount of the estimated future settlement obligation in the period incurred. We recognize increases in the present value of the AROs as an additional liability and add this amount to the carrying amount of the associated ARC. We record decreases as a reduction in both the recorded liability and the carrying amount of the associated ARC. |
Derivative Financial Instruments | Derivative Financial Instruments. We occasionally enter into derivative transactions for hedging or risk management purposes. We record all derivative instruments as either assets or liabilities on our consolidated balance sheet at their fair value. We have not and do not intend to enter into any derivative transactions for speculative or profit generating purposes. See Note 8 for additional information. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets. We review long-lived assets such as property, plant and equipment and identifiable intangible assets with definite useful lives, which include our telecommunications licenses, for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the total of the expected undiscounted future cash flows of the asset or asset group is less than the carrying amount of the asset, we recognize a loss, if any, for the difference between the fair value and carrying value of the asset. |
Intangible Assets | Intangible Assets. Our intangible assets consist of our telecommunications licenses and our customer relationships. We calculate amortization on our licenses using the straight-line method based on an estimated useful life of 26 to 30 years. We calculate amortization on our customer relationships using the straight-line method based on an estimated useful life of 4 years. In Brazil, licenses are customarily issued conditionally for specified periods of time ranging from 15 to 30 years, including renewals. In addition, the wireless telecommunications industry is experiencing significant technological change, and the commercial life of any particular technology is difficult to predict. In light of these uncertainties, we classify our licenses as definite lived intangible assets. In connection with the implementation of fresh start accounting, we revised the remaining estimated useful lives of our licenses to include renewal periods in cases where it is probable that a renewal will occur. |
Revenue Recognition | Revenue Recognition. Operating revenues primarily consist of wireless service revenues and revenues generated from the sale of handsets and accessories. Wireless service revenues primarily consist of access charges for providing customers with voice, data or messaging services over the contract period. As a result of the implementation of Accounting Standards Update, or ASU, No. 2014-09, “Revenue from Contracts with Customers,” and several related amendments, which we refer to as Accounting Standards Codification, or ASC, 606, beginning January 1, 2018, 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. We recognize revenue related to access charges ratably over the contract period and net of taxes collected from customers. We recognize handset and accessory revenue when a subscriber takes possession of the 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. Other revenues primarily include amounts generated from our handset maintenance programs, roaming revenues generated from other companies’ subscribers that roam on our networks and rental revenues from third party tenants that rent space on our transmitter and receiver sites. We recognize roaming revenues at contractual rates per minute as minutes are used. We recognize revenues from third party tenants on a monthly basis based on the terms set by the underlying agreements. Revenue-Based Taxes. Prior to the implementation of ASC 606, we recorded certain revenue-based taxes on a gross basis. For the years ended December 31, 2017 and 2016, we recognized $28.2 million and $46.9 million , respectively, in revenue-based taxes as a component of both service and other revenues and selling, general and administrative expenses in our 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 $15.2 million in revenue-based taxes as a component of both service and other revenues and selling, general and administrative expenses in our consolidated statement of comprehensive loss during the year ended December 31, 2018. 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 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. |
Accounts Receivable | Accounts Receivable. Accounts receivable represents amounts due from subscribers, net of an allowance for doubtful accounts, and includes amounts that have been billed to customers and amounts that have not yet been billed. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts. We establish an allowance for doubtful accounts receivable sufficient to cover probable and reasonably estimated losses. We estimate this allowance based on historical experience, aging of accounts receivable and recent collections trends. While we believe that the estimates we use are reasonable, actual results could differ from those estimates. |
Advertising Costs | Advertising Costs. We expense costs related to advertising and other promotional expenditures as incurred. |
Share-based Compensation | Share-Based Compensation. We measure and recognize compensation expense for all share-based compensation awards based on estimated fair values. We account for share-based awards exchanged for employee services in accordance with the authoritative guidance for stock compensation. Under that guidance, share-based compensation expense is measured at the grant date, based on the estimated fair value of the award when settled in shares, and is recognized over the employee's requisite service period. Compensation expense is amortized on a straight-line basis over the requisite service period for the entire award, which is generally the vesting period of the award. See Note 12 for more information. |
Net (Loss) Income Per Common Share, Basic and Diluted | Net (Loss) Income Per Common Share, Basic and Diluted. Basic net loss per common share is computed by dividing adjusted net (loss) income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net (loss) income per common share reflects the potential dilution of securities that could participate in our earnings, but not securities that are antidilutive, including stock options with an exercise price greater than the average market price of our common stock. Our unvested restricted stock awards, or RSAs, contain non-forfeitable rights to dividends, whether paid or unpaid. As a result, our RSAs are considered participating securities because their holders have the right to participate in earnings with common stockholders. We use the two-class method to allocate net income between common shares and other participating securities. |
Income Taxes | Income Taxes. We account for income taxes using the asset and liability method, under which we recognize deferred income taxes for the tax consequences attributable to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities, as well as for tax loss carryforwards and tax credit carryforwards. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. We recognize the effect on deferred taxes of a change in tax rates in income in the period that includes the enactment date. We recognize a valuation allowance on deferred tax assets unless it is determined that it is “more-likely-than-not” that the asset will be realized. |
Recently Adopted and New Accounting Pronouncements | Recently Adopted Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board, or the FASB, issued 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. We have disclosed the results under both the new and old standards for this first year after adoption. See Note 3 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 consolidated balance sheets to cash, cash equivalents and restricted cash as presented in our consolidated statements of cash flows for all periods presented in Note 5. New Accounting Pronouncements. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” 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, or ROU, assets, and is effective for interim and annual reporting periods beginning after December 15, 2018, subject to early adoption. 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 adopted ASC 842 on January 1, 2019 utilizing the modified retrospective approach and selected this adoption date as our date of initial application. As a result, we do not plan to update financial information related to periods prior to January 1, 2019 nor do we plan to provide the disclosures required under ASC 842 for periods prior to January 1, 2019. The modified retrospective approach includes a package of optional practical expedients that we elected to apply. Among other things, these expedients permit us not to reassess prior conclusions regarding lease identification, lease classification and initial direct costs under the new standard. We also elected the allowable practical expedient that will permit us to use hindsight while performing evaluations of our leases. We expect that the adoption of this new standard will have a material effect on our consolidated financial statements. In addition to providing significant new disclosures regarding our leasing activities as required, we believe that the most significant impacts of the adoption of ASC 842 relate to: (i) our lease liabilities will increase by a range of approximately $385.0 million to $430.0 million primarily related to transmitter and receiver sites based on the present value of the remaining minimum rental payments utilizing the application of hindsight; and (ii) our ROU assets will increase by a range of approximately $325.0 million to $365.0 million ; and (iii) the derecognition of approximately $40.0 million in accrued liabilities related to lease exit costs that we previously recorded under ASC 420, "Exit Disposal Cost Obligations," in connection with the abandonment of certain transmitter and receiver sites. ASC 842 also provides practical expedients for certain ongoing accounting situations. We elected the short-term lease recognition and measurement exemption, which allows us not to recognize ROU assets or lease liabilities for all leases with a term of 12 months or less, including existing short-term leases of those assets in transition. We also elected the non-separation practical expedient that allows us not to separate lease and non-lease components for substantially all of our leases. We are continuing to evaluate each of the remaining additional effects the adoption of ASC 842 will have on our consolidated financial statements. |
Reclassifications | Reclassifications. We have reclassified some prior period amounts in our consolidated financial statements to conform to our current presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Asset Retirement Obligations | As of December 31, 2018 and 2017 , our asset retirement obligations were included as a component of other long-term liabilities in our consolidated balance sheet and are as follows (in thousands): Balance, January 1, 2017 $ 27,606 New asset retirement obligations 486 Change in assumptions (9,181 ) Accretion 1,677 Settlement of asset retirement obligations (9,375 ) Foreign currency translation and other 112 Balance, December 31, 2017 11,325 New asset retirement obligations 282 Change in assumptions 753 Accretion 492 Settlement of asset retirement obligations (1,319 ) Foreign currency translation and other (2,038 ) Balance, December 31, 2018 $ 9,495 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Adoption Impact | Following is a comparison of our reported results of operations for the year ended December 31, 2018 compared to amounts that we would have reported had we not adopted ASC 606 (in thousands): Year Ended December 31, 2018 As Reported With ASC 606 Without ASC 606 Impact Operating revenues Service and other revenues $ 605,492 $ 623,993 $ (18,501 ) Handset and accessory revenues 15,205 13,977 1,228 620,697 637,970 (17,273 ) Operating expenses Cost of service (exclusive of depreciation and amortization included below) 287,598 287,598 — Cost of handsets and accessories 18,571 18,571 — Selling, general and administrative 308,828 326,530 (17,702 ) Impairment, restructuring and other benefits, net 18,949 18,949 — Depreciation 15,119 15,119 — Amortization 13,497 13,497 — 662,562 680,264 (17,702 ) Operating loss $ (41,865 ) $ (42,294 ) $ 429 Net loss $ (194,660 ) $ (195,089 ) $ 429 |
Impairments, Restructuring an_2
Impairments, Restructuring and Other Charges, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Charges | Total impairment, restructuring and other charges, net for 2018, 2017 and 2016 were as follows (in thousands): Year Ended December 31, 2018 2017 2016 Brazil: Transmitter and receiver site lease restructuring costs (1) $ 40,004 $ 70,500 $ 10,804 Reversal of previously accrued restructuring charges - site swaps (2) (15,570 ) — — Radio access network, or RAN, sharing-related restructuring (reversals) charges, net (3) (9,434 ) 29,873 21,362 Severance 879 6,507 — Long-lived asset impairments (4) — 57,902 1,297,479 Other asset impairments (5) 2,718 9,316 10,965 $ 18,597 $ 174,098 $ 1,340,610 Corporate: Long-lived asset impairments (4) $ — $ — $ 41,040 Severance 352 1,148 2,792 Other restructuring charges — 112 369 $ 352 $ 1,260 $ 44,201 Total impairment, restructuring and other charges, net $ 18,949 $ 175,358 $ 1,384,811 _______________________________________ (1) These amounts primarily represented future lease costs for certain transmitter and receiver sites that were no longer required in Nextel Brazil's business. (2) 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 2018, Nextel Brazil identified approximately 360 transmitter and receiver sites that it plans to exchange pursuant to these arrangements, approximately 300 of which were completed in 2018. As a result, in 2018, we reversed $15.6 million of previously accrued restructuring charges related to these site exchanges. (3) The amount for 2018 represents the reversal of previously accrued restructuring charges in connection with the determination that, based on revised plans in 2018, approximately 400 transmitter and receiver sites related to Nextel Brazil's RAN sharing project will continue to be utilized. The amounts for 2017 and 2016 represent restructuring costs related to the determination that RAN sharing would no longer be utilized for approximately 700 and 600 transmitter and receiver sites, respectively. (4) During 2016, we reviewed our Nextel Brazil segment for potential impairment and compared the carrying value of Nextel Brazil's long-lived assets to our estimate of undiscounted future cash flows. Our estimate of undiscounted future cash flows was probability weighted and took into consideration our ability to obtain capital necessary to fund our business plan. In addition, we assumed that the proceeds from any potential sale of Nextel Brazil would be significantly less than its carrying value. Based on our estimates, we determined that the carrying value of our Nextel Brazil segment was not fully recoverable. As a result, we recorded a non-cash asset impairment charge of $1.34 billion to reduce the carrying values of Nextel Brazil's long-lived assets to their respective fair values. We estimated the fair value of our Nextel Brazil segment using a market approach based on our market capitalization and combined it with the fair value of our outstanding debt obligations to determine the impairment charge. See Note 8 for more information on our estimate of the fair value of our debt obligations. We allocated the non-cash asset impairment charge first to reduce the $36.8 million carrying value of our trademark intangible asset to zero, and the remainder between property, plant and equipment and spectrum licenses on a pro rata basis. In addition, during 2017, we reviewed our Nextel Brazil segment for potential impairment and determined that, as a result of the continued decline in share price, the carrying value of this segment was not fully recoverable. As a result, we recorded non-cash asset impairment charges of $57.9 million in 2017 to reduce the carrying values of Nextel Brazil's long-lived assets to their respective fair values. We estimated the fair value of our Nextel Brazil segment using the same approach applied in 2016 and allocated these impairment charges on a pro rata basis between property, plant and equipment and spectrum licenses. During 2018, we reviewed our Nextel Brazil segment for potential impairment and determined that its carrying value was recoverable. (5) These amounts primarily represent charges we recorded in connection with the abandonment of certain transmitter and receiver sites that are no longer required in Nextel Brazil's business. |
Restructuring and Related Costs | As of December 31, 2018, total accrued restructuring charges were as follows (in thousands): Balance, January 1, 2018 $ 107,306 Restructuring charges, net 16,231 Cash payments and other (32,455 ) Foreign currency translation adjustment (16,450 ) Balance, December 31, 2018 $ 74,632 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Financial Statement Information [Abstract] | |
Schedule of Reconciliation from Cash, Cash Equivalents and Restricted Cash | A reconciliation from cash and cash equivalents as presented in our consolidated balance sheets to cash, cash equivalents and restricted cash as reported in our consolidated statements of cash flows is as follows: December 31, 2018 2017 (in thousands) Cash and cash equivalents $ 142,486 $ 193,888 Cash in escrow (included in prepaid expenses and other) 106,089 110,024 Other (included in other assets) 2,164 1,866 Cash, cash equivalents and restricted cash $ 250,739 $ 305,778 |
Schedule of Reconciliation from Cash and Cash Equivalents | A reconciliation from cash and cash equivalents as presented in our consolidated balance sheets to cash, cash equivalents and restricted cash as reported in our consolidated statements of cash flows is as follows: December 31, 2018 2017 (in thousands) Cash and cash equivalents $ 142,486 $ 193,888 Cash in escrow (included in prepaid expenses and other) 106,089 110,024 Other (included in other assets) 2,164 1,866 Cash, cash equivalents and restricted cash $ 250,739 $ 305,778 |
Schedule of Components of Prepaid Expenses and Other | The components of our prepaid expenses and other are as follows: December 31, 2018 2017 (in thousands) Cash in escrow $ 106,089 $ 110,024 Judicial deposits 57,175 43,648 Value-added taxes 43,803 37,191 Deferred commissions (see Note 3) 21,460 — Cash collateral related to performance bonds 618 50,340 Other prepaid assets 9,381 14,231 Other current assets 7,390 8,583 $ 245,916 $ 264,017 |
Schedule of Components of Property, Plant and Equipment | The components of our property, plant and equipment, net are as follows: December 31, 2018 2017 (in thousands) Land $ 417 $ 489 Building and leasehold improvements 650 935 Network equipment, communication towers and network software 108,876 82,493 Software, office equipment, furniture and fixtures and other 31,482 22,498 Less: Accumulated depreciation and amortization (26,858 ) (11,461 ) 114,567 94,954 Construction in progress 29,363 22,308 $ 143,930 $ 117,262 |
Schedule of Finite-Lived Intangible Assets | Our intangible assets, net include the following: December 31, 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 $ 170,640 $ (11,387 ) $ 159,253 $ 186,983 $ (5,426 ) $ 181,557 Customer relationships 4 13,062 (10,159 ) 2,903 15,300 (5,100 ) 10,200 $ 183,702 $ (21,546 ) $ 162,156 $ 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 December 31, 2018 and current exchange rates, we estimate amortization expense for each of the next five years to be as follows (in thousands): Y ears Estimated Amortization Expense 2019 $ 9,814 2020 6,911 2021 6,911 2022 6,911 2023 6,911 |
Schedule of Other Assets | The components of our other long-term assets are as follows: December 31, 2018 2017 (in thousands) Judicial deposits $ 116,220 $ 110,758 Cash collateral related to contingencies 47,899 55,027 Deferred commissions (see Note 3) 16,037 — Other 51,023 54,224 $ 231,179 $ 220,009 |
Schedule of Components of Accrued Expenses and Other | The components of our accrued expenses and other are as follows: December 31, 2018 2017 (in thousands) Contingencies $ 74,111 $ 78,006 Network system and information technology 52,207 48,702 Non-income based taxes 37,817 30,044 Payroll related items and commissions 27,100 32,613 License fees 20,706 17,501 Other 87,049 101,263 $ 298,990 $ 308,129 |
Schedule of Components of Other Long-term Liabilities | The components of our other long-term liabilities are as follows: December 31, 2018 2017 (in thousands) Non-current withholding taxes $ 78,440 $ 67,356 Accrued lease termination and other restructuring charges 67,125 90,128 Conversion option for convertible senior notes 33,577 — Accrued interest on Brazil spectrum financing 30,864 17,261 Other 39,049 43,845 $ 249,055 $ 218,590 |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Information. Year Ended December 31, 2018 2017 2016 (in thousands) Capital expenditures Cash paid for capital expenditures, including capitalized interest $ 60,942 $ 66,536 $ 61,291 Change in capital expenditures accrued and unpaid or financed, including accreted interest capitalized 3,284 (15,433 ) (9,984 ) $ 64,226 $ 51,103 $ 51,307 Interest costs Interest expense, net $ 100,513 $ 118,605 $ 113,732 Interest capitalized 1,669 1,669 283 $ 102,182 $ 120,274 $ 114,015 Cash paid for interest, net of amounts capitalized $ 67,361 $ 91,297 $ 105,636 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | The components of our debt are as follows: December 31, 2018 2017 (in thousands) Brazil equipment financing $ 238,380 $ 242,883 Brazil bank loans 169,946 200,567 Brazil spectrum financing 104,344 122,044 Convertible senior notes 72,264 — Brazil capital lease and tower financing obligations 69,273 90,213 Total debt 654,207 655,707 Less: current portion (21,350 ) (7,990 ) $ 632,857 $ 647,717 |
Annual Maturities of Long Term Debt Outstanding | For the years subsequent to December 31, 2018 , scheduled annual maturities of all debt outstanding are as follows (in thousands): Year Principal Repayments 2019 $ 22,007 2020 22,717 2021 22,800 2022 117,553 2023 233,108 Thereafter 296,323 Total $ 714,508 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Debt | The carrying amounts and estimated fair values of our debt instruments are as follows: December 31, 2018 2017 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (in thousands) Brazil equipment financing $ 238,380 $ 233,581 $ 242,883 $ 237,958 Bank bank loans 169,946 119,218 200,567 144,312 Brazil spectrum financing 104,344 123,531 122,044 128,225 Convertible senior notes 72,264 80,704 — — $ 584,934 $ 557,034 $ 565,494 $ 510,495 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments for Capital and Operating Lease Obligations | For years subsequent to December 31, 2018 , future minimum payments for all capital and operating lease obligations that have initial or remaining noncancelable lease terms exceeding one year, net of rental income, are as follows (in thousands): Capital Leases Operating Leases Total 2019 $ 34,400 $ 106,922 $ 141,322 2020 33,959 101,228 135,187 2021 33,294 96,719 130,013 2022 31,644 86,120 117,764 2023 30,589 72,808 103,397 Thereafter 453,634 628,449 1,082,083 Total minimum lease payments 617,520 1,092,246 1,709,766 Less: imputed interest (551,535 ) — (551,535 ) Total $ 65,985 $ 1,092,246 $ 1,158,231 The amounts included in the table above are presented net of taxes of approximately 10% for all periods. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Income From Continuing Operations Before Income Taxes | The components of loss from continuing operations before income taxes and the related income tax benefit are as follows (in thousands): Year Ended December 31, 2018 2017 2016 U.S. $ (13,706 ) $ (41,143 ) $ (53,843 ) Non-U.S. (172,540 ) (305,631 ) (1,482,928 ) Total $ (186,246 ) $ (346,774 ) $ (1,536,771 ) |
Income Tax Provision | Year Ended December 31, 2018 2017 2016 Current: Federal $ — $ — $ — Foreign — 5,779 (291 ) Total current income tax benefit (provision) — 5,779 (291 ) Deferred: Federal — — 2,864 State, net of Federal tax benefit — — 319 Foreign — 568 — Total deferred income tax benefit — 568 3,183 Total income tax benefit $ — $ 6,347 $ 2,892 |
Reconciliation of the U.S. Statutory Federal Income Tax Rate to Effective Tax Rate | A reconciliation of the U.S. statutory Federal income tax rate to our effective tax rate as a percentage of loss from continuing operations before income tax benefit is as follows: Year Ended December 31, 2018 2017 2016 Statutory Federal tax rate 21% 35% 35% Effect of foreign operations 7 — (2) Effect of statutory Federal tax rate change on deferred tax asset — (37) — Change in deferred tax asset valuation allowance (20) 16 (32) Effect of permanent differences (6) (12) — Other, net (2) — (1) Effective tax rate — 2% — |
Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities consist of the following: December 31, 2018 2017 (in thousands) Deferred tax assets: Net operating losses and capital loss carryforwards $ 6,296,017 $ 6,509,165 Allowance for doubtful accounts 8,248 20,122 Accrued expenses 78,786 53,867 Accrual for contingent liabilities 25,753 27,016 Intangible assets 88,603 121,122 Property, plant and equipment 82,760 143,701 Leasing related activity 21,851 27,519 Equity compensation 1,333 1,151 Long term debt 46,722 55,146 Inventory reserve 440 717 Other 352 1,004 6,650,865 6,960,530 Valuation allowance (6,622,915 ) (6,957,569 ) Total deferred tax asset 27,950 2,961 Deferred tax liabilities: Other 13,505 2,432 Deferred commissions 13,993 — Total deferred tax liability 27,498 2,432 Net deferred tax asset $ 452 $ 529 |
Deferred Tax Asset Valuation Allowance | The deferred tax asset valuation allowances that our subsidiaries and holding companies had as of December 31, 2018 and 2017 are as follows: 2018 2017 (in millions) Brazil $ 1,020.4 $ 1,162.5 U.S. 243.1 240.4 Luxembourg 5,128.6 5,313.7 Spain 230.8 241.0 Total $ 6,622.9 $ 6,957.6 |
Employee Stock and Benefit Pl_2
Employee Stock and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |
Summary of Stock Option Activity Under All Plans | The following table summarizes stock option activity under the 2015 Incentive Compensation Plan: Number of Options Weighted Average Exercise Price per Option Weighted Average Remaining Life Aggregate Intrinsic Value Outstanding, December 31, 2017 3,357,698 $ 3.16 8.83 Granted 1,000,000 $ 2.19 Exercised (552,363 ) $ 4.00 Forfeited (832,702 ) $ 3.14 Outstanding, December 31, 2018 2,972,633 $ 2.69 8.41 $ 823,695 Exercisable, December 31, 2018 818,634 $ 6.01 7.22 $ 207,454 |
Assumptions in Option Pricing Model | The weighted average fair value of the stock option awards on their grant dates using the Black-Scholes-Merton option-pricing model were $0.84 , $0.22 and $1.48 for each option granted during the years ended December 31, 2018 , 2017 and 2016, based on the following assumptions: Year Ended December 31, 2018 2017 2016 Risk free interest rate 1.53% 1.53% 1.53% - 1.90% Expected stock price volatility 40.87% 40.87% 40.71% - 40.87% Expected term in years 5.16 5.16 5.16 Expected dividend yield — — — |
Summary of the Status of Non-Vested Restricted Stock Awards | The following table summarizes restricted stock activity under the 2015 Incentive Compensation Plan, for the year ended December 31, 2018: Number of Shares Weighted Average Grant Date Fair Value Per Share Restricted stock awards as of December 31, 2017 97,350 $ 15.99 Granted 2,483,806 $ 4.15 Vested (524,282 ) $ 4.69 Forfeited (2,447 ) $ 16.00 Restricted stock awards as of December 31, 2018 2,054,427 $ 4.56 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Information | Brazil Corporate and Eliminations Consolidated (in thousands) Year Ended December 31, 2018 Operating revenues $ 620,675 $ 22 $ 620,697 Segment earnings (losses) $ 23,004 $ (17,304 ) $ 5,700 Less: Impairment, restructuring and other charges, net (18,949 ) Depreciation and amortization (28,616 ) Foreign currency transaction losses, net (49,008 ) Interest expense and other, net (95,373 ) Loss from continuing operations before income tax benefit $ (186,246 ) Capital expenditures $ 64,226 $ — $ 64,226 Year Ended December 31, 2017 Operating revenues $ 870,588 $ 106 $ 870,694 Segment losses $ (25,942 ) $ (24,174 ) $ (50,116 ) Less: Impairment, restructuring and other charges, net (175,358 ) Depreciation and amortization (35,446 ) Foreign currency transaction losses, net (1,271 ) Interest expense and other, net (84,583 ) Loss from continuing operations before income tax benefit $ (346,774 ) Capital expenditures $ 51,103 $ — $ 51,103 Year Ended December 31, 2016 Operating revenues $ 984,878 $ 168 $ 985,046 Segment earnings (losses) $ 67,186 $ (36,821 ) $ 30,365 Less: Impairment, restructuring and other charges, net (1,384,811 ) Depreciation and amortization (172,383 ) Foreign currency transaction gains, net 76,615 Interest expense and other, net (86,557 ) Loss from continuing operations before income tax benefit $ (1,536,771 ) Capital expenditures $ 51,307 $ — $ 51,307 December 31, 2018 Identifiable assets $ 857,385 $ 202,445 $ 1,059,830 December 31, 2017 Identifiable assets $ 965,919 $ 147,603 $ 1,113,522 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | First Second Third Fourth (in thousands, except per share amounts) 2018 Operating revenues $ 181,241 $ 156,008 $ 141,737 $ 141,711 Operating (loss) income (13,293 ) (20,292 ) 1,345 (9,625 ) Net (loss) income from continuing operations (42,031 ) (96,626 ) (49,721 ) 2,132 Net loss from discontinued operations (121 ) (2,662 ) (163 ) (5,468 ) Net (loss) income from continuing operations, per common share, basic $ (0.42 ) $ (0.96 ) $ (0.50 ) $ 0.02 Net loss from discontinued operations, per common share, basic $ — $ (0.03 ) $ — $ (0.06 ) Net (loss) income from continuing operations, per common share, diluted $ (0.42 ) $ (0.96 ) $ (0.50 ) $ 0.02 Net loss from discontinued operations, per common share, diluted $ — $ (0.03 ) $ — $ (0.06 ) First Second Third Fourth (in thousands, except per share amounts) 2017 Operating revenues $ 250,955 $ 225,134 $ 205,423 $ 189,182 Operating loss (79,849 ) (68,931 ) (74,432 ) (37,708 ) Net loss from continuing operations (92,675 ) (87,467 ) (85,488 ) (74,797 ) Net (loss) income from discontinued operations (38 ) 2,697 (92 ) (1,562 ) Net loss from continuing operations, per common share, basic $ (0.92 ) $ (0.87 ) $ (0.85 ) $ (0.75 ) Net income (loss) from discontinued operations, per common share, basic $ — $ 0.02 $ — $ (0.02 ) Net loss from continuing operations, per common share, diluted $ (0.92 ) $ (0.87 ) $ (0.85 ) $ (0.75 ) Net income (loss) from discontinued operations, per common share, diluted $ — $ 0.02 $ — $ (0.02 ) |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | NII HOLDINGS, INC. CONDENSED BALANCE SHEETS (PARENT COMPANY ONLY) (in thousands) December 31, December 31, ASSETS Current assets Cash and cash equivalents $ 91,046 $ 28,167 Prepaid expenses and other 334 104 Total current assets 91,380 28,271 Long-term intercompany receivables 15 15 Other assets 2 2 Total assets $ 91,397 $ 28,288 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities Short-term intercompany payables $ 1,439 $ 1,439 Accrued expenses and other 1,887 — Total current liabilities 3,326 1,439 Long-term debt 72,264 — Other long-term liabilities 197,376 138,037 Total liabilities 272,966 139,476 Total deficit (181,569 ) (111,188 ) Total liabilities and stockholders’ deficit $ 91,397 $ 28,288 |
Condensed Statements of Comprehensive Loss | NII HOLDINGS, INC. CONDENSED STATEMENTS OF COMPREHENSIVE LOSS (PARENT COMPANY ONLY) (in thousands) Year Ended December 31, 2018 2017 2016 Operating revenues $ — $ — $ — Operating expenses Selling, general and administrative 54 — — Impairment, restructuring and other charges, net — — 36,839 Depreciation and amortization — — 1,116 54 — 37,955 Operating loss (54 ) — (37,955 ) Other (expense) income Interest expense, net (4,207 ) — — Intercompany interest expense — — (117,078 ) Intercompany interest income 1,101 231 197 Equity in loss of affiliates (146,344 ) (292,240 ) (1,401,998 ) Other income (expense), net 6,424 (1,138 ) (206 ) (143,026 ) (293,147 ) (1,519,085 ) Loss before income tax benefit (143,080 ) (293,147 ) (1,557,040 ) Income tax benefit — — 3,183 Net loss from continuing operations (143,080 ) (293,147 ) (1,553,857 ) Loss from discontinued operations, net of income taxes — — (16 ) Net loss $ (143,080 ) $ (293,147 ) $ (1,553,873 ) Comprehensive loss, net of income taxes Foreign currency translation adjustment $ 38,804 $ 7,360 $ 169,785 Other comprehensive income 38,804 7,360 169,785 Net loss (143,080 ) (293,147 ) (1,553,873 ) Total comprehensive loss $ (104,276 ) $ (285,787 ) $ (1,384,088 ) |
Condensed Statements of Cash Flows | NII HOLDINGS, INC. CONDENSED STATEMENTS OF CASH FLOWS (PARENT COMPANY ONLY) (in thousands) Year Ended December 31, 2018 2017 2016 Cash flows from operating activities: Net loss $ (143,080 ) $ (293,147 ) $ (1,553,873 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities 104,103 277,065 1,554,075 Net cash (used in) provided by operating activities (38,977 ) (16,082 ) 202 Cash flows from investing activities: Investments in subsidiaries (10,043 ) (10,043 ) (36,356 ) Return of investments in subsidiaries 162 162 34,260 Other, net — — (16 ) Net cash used in investing activities (9,881 ) (9,881 ) (2,112 ) Cash flows from financing activities: Gross proceeds from issuance of convertible notes 115,000 — — Payments of debt financing costs (3,292 ) — — Other, net 29 29 — Net cash provided by financing activities 111,737 29 — Net increase (decrease) in cash, cash equivalents and restricted cash 62,879 (25,934 ) (1,910 ) Cash, cash equivalents and restricted cash, beginning of year 28,167 54,101 56,011 Cash, cash equivalents and restricted cash, end of year $ 91,046 $ 28,167 $ 54,101 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Balance at Beginning of Year Charged to Costs and Expenses Deductions and Other Adjustments (1) Balance at End of Year Year Ended December 31, 2018 Allowance for doubtful accounts $ 42,011 $ 36,042 $ (58,416 ) $ 19,637 Valuation allowance for deferred tax assets $ 6,957,569 $ (164,607 ) $ (170,047 ) $ 6,622,915 Year Ended December 31, 2017 Allowance for doubtful accounts $ 54,221 $ 76,518 $ (88,728 ) $ 42,011 Valuation allowance for deferred tax assets $ 6,945,044 $ 28,637 $ (16,112 ) $ 6,957,569 Year Ended December 31, 2016 Allowance for doubtful accounts $ 39,033 $ 77,883 $ (62,695 ) $ 54,221 Valuation allowance for deferred tax assets $ 5,290,813 $ 1,555,006 $ 99,225 $ 6,945,044 _______________________________________ (1) Includes the impact of foreign currency translation adjustments. |
Summary of Operations (Partners
Summary of Operations (Partnership Agreement) (Details) - USD ($) $ / shares in Units, shares in Millions | Mar. 18, 2019 | Jul. 20, 2017 | Jun. 05, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and short-term Investments | $ 174,800,000 | $ 174,800,000 | |||||||||||||
Cash in escrow | $ 106,089,000 | $ 110,024,000 | $ 106,089,000 | $ 110,024,000 | |||||||||||
Percent of escrow disputed (as percent) | 30.00% | 30.00% | |||||||||||||
Revenue | $ 141,711,000 | $ 141,737,000 | $ 156,008,000 | $ 181,241,000 | 189,182,000 | $ 205,423,000 | $ 225,134,000 | $ 250,955,000 | $ 620,697,000 | 870,694,000 | $ 985,046,000 | ||||
Cost of services | (287,598,000) | (370,435,000) | (364,648,000) | ||||||||||||
Impairment, restructuring and other charges | (18,949,000) | (175,358,000) | (1,384,811,000) | ||||||||||||
Depreciation | (15,119,000) | (20,451,000) | (135,429,000) | ||||||||||||
Prepaid expenses and other | 245,916,000 | 264,017,000 | 245,916,000 | 264,017,000 | |||||||||||
Intangible assets, net | (162,156,000) | (191,757,000) | (162,156,000) | (191,757,000) | |||||||||||
Other assets | 231,179,000 | 220,009,000 | 231,179,000 | 220,009,000 | |||||||||||
Other long-term liabilities | (249,055,000) | (218,590,000) | (249,055,000) | (218,590,000) | |||||||||||
Accumulated deficit | 2,236,883,000 | 2,127,903,000 | 2,236,883,000 | 2,127,903,000 | |||||||||||
Accumulated other comprehensive loss | 8,435,000 | 47,239,000 | 8,435,000 | 47,239,000 | |||||||||||
Noncontrolling interest | (79,592,000) | (75,445,000) | (79,592,000) | (75,445,000) | |||||||||||
Operating (loss) income | $ (9,625,000) | $ 1,345,000 | $ (20,292,000) | $ (13,293,000) | (37,708,000) | $ (74,432,000) | $ (68,931,000) | $ (79,849,000) | (41,865,000) | (260,920,000) | (1,526,829,000) | ||||
Net loss attributable to noncontrolling interest | (51,580,000) | (46,275,000) | 0 | ||||||||||||
Net loss | $ (143,080,000) | $ (293,147,000) | $ (1,553,873,000) | ||||||||||||
Net loss from continuing operations per basic and diluted common share (in dollars per share) | $ 1.86 | $ 3.40 | $ 15.32 | ||||||||||||
Net loss attributable to NII Holdings per basic and diluted common share (in dollars per share) | $ 1.94 | $ 3.39 | $ 15.52 | ||||||||||||
Nextel Holdings | |||||||||||||||
Consideration transfered sale of stock | $ 50,000,000 | ||||||||||||||
Shares issued in transaction (in shares) | 116.6 | ||||||||||||||
Additional consideration transfered in sale of stock | $ 15,900,000 | ||||||||||||||
Nextel Holdings | AINMT Holdings AB | |||||||||||||||
Shares issued in transaction (in shares) | 50 | ||||||||||||||
AINMT Holdings AB | Nextel Holdings | |||||||||||||||
Percent ownership after sale of stock (as percent) | 30.00% | ||||||||||||||
Percent of ownership sold (as percent) | 30.00% | ||||||||||||||
AI Media Holdings (NMT) LLC | AI Brazil Holdings B.V. [Member] | |||||||||||||||
Ownership interest by parent (as percent) | 90.00% | 90.00% | |||||||||||||
Bridford Music Holdings B.V. | AI Brazil Holdings B.V. [Member] | |||||||||||||||
Ownership interest by noncontrolling owner (as percent) | 10.00% | 10.00% | |||||||||||||
Restatement adjustment | |||||||||||||||
Cost of services | $ 4,200,000 | ||||||||||||||
Impairment, restructuring and other charges | 4,400,000 | ||||||||||||||
Depreciation | 1,700,000 | ||||||||||||||
Prepaid expenses and other | 9,600,000 | 9,600,000 | |||||||||||||
Intangible assets, net | 2,900,000 | 2,900,000 | |||||||||||||
Other assets | 1,800,000 | 1,800,000 | |||||||||||||
Other long-term liabilities | 2,300,000 | 2,300,000 | |||||||||||||
Accumulated deficit | 7,900,000 | 7,900,000 | |||||||||||||
Accumulated other comprehensive loss | 300,000 | 300,000 | |||||||||||||
Noncontrolling interest | $ 3,200,000 | 3,200,000 | |||||||||||||
Operating (loss) income | 11,200,000 | ||||||||||||||
Net loss attributable to noncontrolling interest | 3,400,000 | ||||||||||||||
Net loss | $ 7,900,000 | ||||||||||||||
Net loss from continuing operations per basic and diluted common share (in dollars per share) | $ 0.11 | ||||||||||||||
Net loss attributable to NII Holdings per basic and diluted common share (in dollars per share) | $ 0.11 | ||||||||||||||
Service and other revenues | |||||||||||||||
Revenue | $ 605,492,000 | $ 848,806,000 | $ 963,209,000 | ||||||||||||
Service and other revenues | Restatement adjustment | |||||||||||||||
Revenue | $ 900,000 | ||||||||||||||
Scenario, plan | Nextel Holdings | |||||||||||||||
Additional consideration transfered in sale of stock | $ 150,000,000 | ||||||||||||||
Scenario, plan | AINMT Holdings AB | |||||||||||||||
Additional percentage of ownership received after transaction (as percent) | 30.00% | ||||||||||||||
Subsequent Event | Nextel Brazil | Disposed of by Sale | |||||||||||||||
Aggregate purchase price | $ 905,000,000 | ||||||||||||||
Amount in escrow | $ 30,000,000 | ||||||||||||||
Escrow period | 18 months | ||||||||||||||
Subsequent Event | Nextel Brazil | Disposed of by Sale | Minimum | |||||||||||||||
Termination fee | $ 25,000,000 | ||||||||||||||
Subsequent Event | Nextel Brazil | Disposed of by Sale | Maximum | |||||||||||||||
Termination fee | 2,000,000 | ||||||||||||||
Subsequent Event | Nextel Mexico | Disposed of by Sale | Scenario, plan | |||||||||||||||
Recovery of escrow | $ 10,000,000 | ||||||||||||||
Value of additional funds recovered from escrow (as percent) | 6.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) shares in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets owned by subsidiaries (as percent) | 81.00% | |||
Provision for inventory obsolescence | $ 0 | $ 1,033,000 | $ 1,731,000 | |
Percent of customers with services only (as percent) | 90.00% | |||
Revenue based taxes and other excise taxes | 28,200,000 | 46,900,000 | ||
Advertising costs | $ 26,600,000 | 26,900,000 | 30,900,000 | |
Net loss attributable to noncontrolling interest | 51,580,000 | 46,275,000 | $ 0 | |
Undeclared dividends | $ 1,000,000 | 500,000 | ||
Antidilutive securities excluded from computation of net (loss) income per share (in shares) | 18.5 | |||
Derecognition of restructuring charges | $ (16,231,000) | |||
Access Industries | Nextel Holdings | ||||
Dividend rate (as percent) | 2.00% | |||
Stock Options | ||||
Antidilutive securities excluded from computation of net (loss) income per share (in shares) | 3.4 | 3.4 | 3.5 | |
Restricted Stock | ||||
Antidilutive securities excluded from computation of net (loss) income per share (in shares) | 1 | 0.3 | 0.8 | |
Accounting Standards Update 204-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Revenue based taxes and other excise taxes | $ 15,200,000 | |||
Accounting Standards Update 2016-02 | Scenario, forecast | ||||
Derecognition of restructuring charges | $ 40,000,000 | |||
Minimum | ||||
Useful life | 3 years | |||
Minimum | Accounting Standards Update 2016-02 | Scenario, forecast | ||||
Operating lease, liability | 385,000,000 | |||
Operating lease, ROU asset | 325,000,000 | |||
Maximum | ||||
Useful life | 10 years | |||
Maximum | Accounting Standards Update 2016-02 | Scenario, forecast | ||||
Operating lease, liability | 430,000,000 | |||
Operating lease, ROU asset | $ 365,000,000 | |||
Licensing Agreements | Brazil | ||||
Amortization of intangible assets including renewals, useful life, minimum | 15 years | |||
Amortization of intangible assets including renewals, useful life, maximum | 30 years | |||
Licensing Agreements | Minimum | ||||
Acquired finite-lived intangible assets, weighted average useful life | 26 years | |||
Licensing Agreements | Maximum | ||||
Acquired finite-lived intangible assets, weighted average useful life | 30 years | |||
Customer relationships | ||||
Acquired finite-lived intangible assets, weighted average useful life | 4 years | |||
Network equipment, communication towers and network software | Minimum | ||||
Useful life | 3 years | |||
Network equipment, communication towers and network software | Maximum | ||||
Useful life | 30 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation, beginning balance | $ 11,325 | $ 27,606 |
New asset retirement obligations | 282 | 486 |
Change in assumptions | 753 | (9,181) |
Accretion | 492 | 1,677 |
Settlement of asset retirement obligations | (1,319) | (9,375) |
Foreign currency translation and other | (2,038) | 112 |
Asset retirement obligation, ending balance | $ 9,495 | $ 11,325 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Description of timing of revenue recognition | The typical length of our service contracts is 12 months for individual customers and 24 months for corporate customers. | ||
Percent of customers with services only (as percent) | 90.00% | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expenses and other | $ 245,916 | $ 264,017 | |
Other assets | 231,179 | 220,009 | |
Accrued expenses and other | 298,990 | 308,129 | |
Other long-term liabilities | (249,055) | $ (218,590) | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 204-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expenses and other | $ 21,200 | ||
Other assets | 26,800 | ||
Accrued expenses and other | 1,100 | ||
Other long-term liabilities | 1,800 | ||
Brazil | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract assets | 2,500 | ||
Contract liabilities | 2,000 | ||
Capitalized contract cost | 37,500 | 42,800 | |
Brazil | Prepaid Expenses and Other Current Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract assets | 2,000 | ||
Capitalized contract cost | 21,500 | ||
Brazil | Other Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Capitalized contract cost | 16,000 | ||
Brazil | Selling, General and Administrative Expenses | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Commission expense | $ 17,300 | ||
Brazil | Accounting Standards Update 204-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract assets | 5,500 | ||
Contract liabilities | 1,700 | ||
Brazil | Accounting Standards Update 204-09 | Prepaid Expenses and Other Current Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract assets | 4,500 | ||
Capitalized contract cost | 16,300 | ||
Brazil | Accounting Standards Update 204-09 | Other Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Capitalized contract cost | $ 26,500 |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Remaining performance obligation amount | $ 324.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Remaining performance obligation amount | $ 333.7 |
Revenue Recognition (Adoption I
Revenue Recognition (Adoption Impact) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Operating revenues | $ 141,711 | $ 141,737 | $ 156,008 | $ 181,241 | $ 189,182 | $ 205,423 | $ 225,134 | $ 250,955 | $ 620,697 | $ 870,694 | $ 985,046 |
Cost of service (exclusive of depreciation and amortization included below) | 287,598 | 370,435 | 364,648 | ||||||||
Cost of handsets and accessories | 18,571 | 40,207 | 29,273 | ||||||||
Selling, general and administrative | 308,828 | 510,168 | 560,760 | ||||||||
Impairment, restructuring and other charges, net | 18,949 | 175,358 | 1,384,811 | ||||||||
Depreciation | 15,119 | 20,451 | 135,429 | ||||||||
Amortization | 13,497 | 14,995 | 36,954 | ||||||||
Operating expenses | 662,562 | 1,131,614 | 2,511,875 | ||||||||
Operating loss | $ (9,625) | $ 1,345 | $ (20,292) | $ (13,293) | $ (37,708) | $ (74,432) | $ (68,931) | $ (79,849) | (41,865) | (260,920) | (1,526,829) |
Net loss | (194,660) | (339,422) | (1,553,873) | ||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Operating revenues | 637,970 | ||||||||||
Cost of service (exclusive of depreciation and amortization included below) | 287,598 | ||||||||||
Cost of handsets and accessories | 18,571 | ||||||||||
Selling, general and administrative | 326,530 | ||||||||||
Impairment, restructuring and other charges, net | 18,949 | ||||||||||
Depreciation | 15,119 | ||||||||||
Amortization | 13,497 | ||||||||||
Operating expenses | 680,264 | ||||||||||
Operating loss | (42,294) | ||||||||||
Net loss | (195,089) | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 204-09 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Operating revenues | 17,273 | ||||||||||
Cost of service (exclusive of depreciation and amortization included below) | 0 | ||||||||||
Cost of handsets and accessories | 0 | ||||||||||
Selling, general and administrative | 17,702 | ||||||||||
Impairment, restructuring and other charges, net | 0 | ||||||||||
Depreciation | 0 | ||||||||||
Amortization | 0 | ||||||||||
Operating expenses | 17,702 | ||||||||||
Operating loss | (429) | ||||||||||
Net loss | (429) | ||||||||||
Service and other revenues | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Operating revenues | 605,492 | 848,806 | 963,209 | ||||||||
Service and other revenues | Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Operating revenues | 623,993 | ||||||||||
Service and other revenues | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 204-09 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Operating revenues | 18,501 | ||||||||||
Handset and accessory revenues | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Operating revenues | 15,205 | $ 21,888 | $ 21,837 | ||||||||
Handset and accessory revenues | Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Operating revenues | 13,977 | ||||||||||
Handset and accessory revenues | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 204-09 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Operating revenues | $ (1,228) |
Impairments, Restructuring an_3
Impairments, Restructuring and Other Charges, Net (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)site | Dec. 31, 2017USD ($)site | Dec. 31, 2016USD ($)site | Mar. 31, 2018site | |
Impairments and Restructuring Charges [Line Items] | ||||
Restructuring charges, net | $ 16,231 | |||
Long-lived asset impairments | $ 1,340,000 | |||
Total impairment, restructuring and other charges, net | $ 18,949 | $ 175,358 | $ 1,384,811 | |
Number of transmitter and receivers sites expected to be terminated | site | 600 | |||
Reversal of previously accrued restructuring charge | $ 15,600 | |||
Number of transmitter and receiver sites no longer utilizing RAN sharing | site | 700 | 600 | ||
Trademarks | ||||
Impairments and Restructuring Charges [Line Items] | ||||
Intangible asset | $ 36,800 | |||
Brazil | ||||
Impairments and Restructuring Charges [Line Items] | ||||
Number of transmitter and receiver sites that will continue to be utilized | site | 400 | |||
Brazil | Contract termination | ||||
Impairments and Restructuring Charges [Line Items] | ||||
Number of transmitter and receivers sites expected to be terminated | site | 360 | |||
Number of transmitter and receiver sites terminated | site | 300 | |||
Operating Segments | Brazil | ||||
Impairments and Restructuring Charges [Line Items] | ||||
Long-lived asset impairments | $ 0 | $ 57,902 | 1,297,479 | |
Other asset impairments | 2,718 | 9,316 | 10,965 | |
Total impairment, restructuring and other charges, net | 18,597 | 174,098 | 1,340,610 | |
Operating Segments | Brazil | Contract termination | Transmitter and receiver site lease | ||||
Impairments and Restructuring Charges [Line Items] | ||||
Restructuring charges, net | 40,004 | 70,500 | 10,804 | |
Operating Segments | Brazil | Contract termination | Site swaps | ||||
Impairments and Restructuring Charges [Line Items] | ||||
Restructuring charges, net | (15,570) | 0 | 0 | |
Operating Segments | Brazil | Contract termination | Radio access network, or RAN, sharing-related restructuring (reversals) charges, net | ||||
Impairments and Restructuring Charges [Line Items] | ||||
Restructuring charges, net | (9,434) | 29,873 | 21,362 | |
Operating Segments | Brazil | Severance | ||||
Impairments and Restructuring Charges [Line Items] | ||||
Restructuring charges, net | 879 | 6,507 | 0 | |
Corporate and Eliminations | ||||
Impairments and Restructuring Charges [Line Items] | ||||
Long-lived asset impairments | 0 | 0 | 41,040 | |
Total impairment, restructuring and other charges, net | 352 | 1,260 | 44,201 | |
Corporate and Eliminations | Severance | ||||
Impairments and Restructuring Charges [Line Items] | ||||
Restructuring charges, net | 352 | 1,148 | 2,792 | |
Corporate and Eliminations | Other restructuring charges | ||||
Impairments and Restructuring Charges [Line Items] | ||||
Restructuring charges, net | $ 0 | $ 112 | $ 369 |
Impairments, Restructuring an_4
Impairments, Restructuring and Other Charges, Net (Restructuring Charges) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Accrued restructuring charges, beginning balance | $ 107,306 | |
Restructuring charges, net | $ 16,231 | |
Cash payments and other | (32,455) | |
Foreign currency translation adjustment | (16,450) | |
Accrued restructuring charges, ending balance | $ 74,632 | $ 107,306 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information (Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Supplemental Financial Statement Information [Abstract] | ||||
Restricted cash | $ 108,300 | $ 111,900 | $ 164,900 | |
Cash and cash equivalents | 142,486 | 193,888 | ||
Cash in escrow (included in prepaid expenses and other) | 106,089 | 110,024 | ||
Other (included in other assets) | 2,164 | 1,866 | ||
Cash, cash equivalents and restricted cash | $ 250,739 | $ 305,778 | $ 422,232 | $ 570,075 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information (Prepaid Expenses and Other) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental Financial Statement Information [Abstract] | ||
Cash in escrow | $ 106,089 | $ 110,024 |
Judicial deposits | 57,175 | 43,648 |
Value-added taxes | 43,803 | 37,191 |
Deferred commissions (see Note 3) | 21,460 | 0 |
Cash collateral related to performance bonds | 618 | 50,340 |
Other prepaid assets | 9,381 | 14,231 |
Other current assets | 7,390 | 8,583 |
Prepaid expenses and others | $ 245,916 | $ 264,017 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental Financial Statement Information [Abstract] | ||
Land | $ 417 | $ 489 |
Building and leasehold improvements | 650 | 935 |
Network equipment, communication towers and network software | 108,876 | 82,493 |
Software, office equipment, furniture and fixtures and other | 31,482 | 22,498 |
Less: Accumulated depreciation and amortization | (26,858) | (11,461) |
Property, plant and equipment, gross | 114,567 | 94,954 |
Construction in progress | 29,363 | 22,308 |
Property, plant and equipment, net | $ 143,930 | $ 117,262 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information (Intangible Assets, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 183,702 | $ 202,283 |
Accumulated Amortization | (21,546) | (10,526) |
Net Carrying Value | $ 162,156 | 191,757 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 26 years | |
Gross Carrying Value | $ 170,640 | 186,983 |
Accumulated Amortization | (11,387) | (5,426) |
Net Carrying Value | $ 159,253 | 181,557 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 4 years | |
Gross Carrying Value | $ 13,062 | 15,300 |
Accumulated Amortization | (10,159) | (5,100) |
Net Carrying Value | $ 2,903 | $ 10,200 |
Supplemental Financial Statem_7
Supplemental Financial Statement Information (Intangible Amortization Expense) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Supplemental Financial Statement Information [Abstract] | |
2019 | $ 9,814 |
2020 | 6,911 |
2021 | 6,911 |
2022 | 6,911 |
2023 | $ 6,911 |
Supplemental Financial Statem_8
Supplemental Financial Statement Information (Other Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental Financial Statement Information [Abstract] | ||
Judicial deposits | $ 116,220 | $ 110,758 |
Cash collateral related to contingencies | 47,899 | 55,027 |
Deferred commissions (see Note 3) | 16,037 | 0 |
Other | 51,023 | 54,224 |
Other assets | $ 231,179 | $ 220,009 |
Supplemental Financial Statem_9
Supplemental Financial Statement Information (Accrued Expenses and Other) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental Financial Statement Information [Abstract] | ||
Contingencies | $ 74,111 | $ 78,006 |
Network system and information technology | 52,207 | 48,702 |
Non-income based taxes | 37,817 | 30,044 |
Payroll related items and commissions | 27,100 | 32,613 |
License fees | 20,706 | 17,501 |
Other | 87,049 | 101,263 |
Accrued expenses and other | $ 298,990 | $ 308,129 |
Supplemental Financial State_10
Supplemental Financial Statement Information (Other Long-term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental Financial Statement Information [Abstract] | ||
Non-current withholding taxes | $ 78,440 | $ 67,356 |
Accrued lease termination and other restructuring charges | 67,125 | 90,128 |
Conversion option for convertible senior notes | 33,577 | 0 |
Accrued interest on Brazil spectrum financing | 30,864 | 17,261 |
Other | 39,049 | 43,845 |
Other long-term liabilities | $ 249,055 | $ 218,590 |
Supplemental Financial State_11
Supplemental Financial Statement Information (Supplemental Cash Flow Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash paid for capital expenditures, including capitalized interest | $ 60,942 | $ 66,536 | $ 61,291 |
Change in capital expenditures accrued and unpaid or financed, including accreted interest capitalized | 3,284 | (15,433) | (9,984) |
Capital expenditures | 64,226 | 51,103 | 51,307 |
Interest expense, net | 100,513 | 118,605 | 113,732 |
Interest capitalized | 1,669 | 1,669 | 283 |
Interest costs | 102,182 | 120,274 | 114,015 |
Cash paid for interest, net of amounts capitalized | 67,361 | 91,297 | 105,636 |
Current liabilities | $ 359,487 | $ 358,403 | |
Licenses | |||
Current liabilities | 125,700 | ||
Disposed of by Sale | Nextel Argentina | |||
Promissory note issued | $ 85,000 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | Apr. 30, 2015 | Dec. 31, 2010 | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income tax examination penalties accrued | $ 5.3 | ||||
Nextel Mexico | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Aggregate cash consideration | $ 1,875 | ||||
Proceeds from sale of business deposited into 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 | Nextel Mexico | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Potential claims against escrow | 35.5 | ||||
Tax Year 2011 | Nextel Mexico | |||||
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 | Nextel Mexico | |||||
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 | Nextel Mexico | |||||
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 (Debt) (Details)
Debt (Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Brazil equipment financing | $ 238,380 | $ 242,883 |
Brazil bank loans | 169,946 | 200,567 |
Brazil spectrum financing | 104,344 | 122,044 |
Convertible senior notes | 72,264 | 0 |
Brazil capital lease and tower financing obligations | 69,273 | 90,213 |
Total debt | 654,207 | 655,707 |
Less: current portion | (21,350) | (7,990) |
Debt, non-current portion | $ 632,857 | $ 647,717 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) $ / shares in Units, R$ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||
Aug. 31, 2018USD ($)dshares$ / shares | Jan. 31, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)installment | Dec. 31, 2016USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2016BRL (R$) | Jul. 31, 2016USD ($) | Jul. 31, 2016BRL (R$) | Oct. 31, 2012USD ($) | Apr. 30, 2012USD ($) | Dec. 31, 2011USD ($) | |
Gross proceeds from issuance of convertible notes | $ 115,000,000 | $ 0 | $ 0 | ||||||||||
Conversion option for convertible senior notes | 33,577,000 | 0 | |||||||||||
Brazil equipment financing | 238,380,000 | 242,883,000 | |||||||||||
Debt outstanding | 714,508,000 | ||||||||||||
Amount borrowed | 169,946,000 | 200,567,000 | |||||||||||
Remaining financing | 104,344,000 | 122,044,000 | |||||||||||
Accrued interest | 30,864,000 | 17,261,000 | |||||||||||
Other operating revenues | 4,600,000 | $ 8,100,000 | 7,700,000 | ||||||||||
Brazil | |||||||||||||
Brazil equipment financing | $ 243,400,000 | ||||||||||||
Brazilian borrowing rate (as percent) | 8.13% | 9.63% | 9.63% | ||||||||||
Amount borrowed | $ 196,900,000 | $ 341,200,000 | |||||||||||
Spectrum purchase price | $ 116,700,000 | R$ 455.0 | |||||||||||
Initial term of license | 15 years | ||||||||||||
Optional renewal period | 15 years | ||||||||||||
License agreement payment | $ 14,000,000 | R$ 45.5 | |||||||||||
Remaining financing | $ 122,200,000 | R$ 409.5 | |||||||||||
Accrued interest (as percent) | 1.00% | ||||||||||||
Number of annual installments | installment | 6 | ||||||||||||
Principal and interest payment due | $ 25,800,000 | ||||||||||||
Brazil Equipment Financing and Brazil Bank Loans | |||||||||||||
Capitalized debt costs | $ 6,100,000 | ||||||||||||
Grace period | 48 months | ||||||||||||
Repayment term after grace period | 50 months | ||||||||||||
Brazil equipment financing | |||||||||||||
Loan agreement, maximum borrowing capacity | $ 500,000,000 | ||||||||||||
Brazil equipment financing | Maximum | |||||||||||||
Effective interest rate on convertible notes (as percent) | 5.78% | 4.46% | 4.46% | ||||||||||
Brazil CDB loan floating interest rate (as percent) | 2.90% | ||||||||||||
Brazil equipment financing | Minimum | |||||||||||||
Effective interest rate on convertible notes (as percent) | 4.68% | 3.36% | 3.36% | ||||||||||
Brazil CDB loan floating interest rate (as percent) | 1.80% | ||||||||||||
Brazil Local Loans | |||||||||||||
Debt outstanding | $ 169,200,000 | ||||||||||||
Brazil Local Loans | Brazil | |||||||||||||
Brazilian borrowing rate (as percent) | 139.54% | ||||||||||||
Floating interest rate based on local Brazilian borrowing rate (as percent) | 127.00% | ||||||||||||
Convertible senior notes | |||||||||||||
Face amount of debt | $ 115,000,000 | ||||||||||||
Interest rate (as percent) | 4.25% | ||||||||||||
Debt issuance costs | $ 5,200,000 | ||||||||||||
Gross proceeds from issuance of convertible notes | $ 115,000,000 | ||||||||||||
Redemption price, percentage of principal amount redeemed (as percent) | 100.00% | ||||||||||||
Threshold consecutive trading days | d | 30 | ||||||||||||
Convertible senior notes | Debt Conversion One | |||||||||||||
Conversion ratio | 0.1609658 | ||||||||||||
Number of equity instruments | shares | 18,511,067 | ||||||||||||
Threshold percentage of stock price trigger (as percent) | 130.00% | ||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 6.21 | ||||||||||||
Threshold trading days | d | 20 | ||||||||||||
Convertible senior notes | Debt Conversion Two | |||||||||||||
Threshold percentage of stock price trigger (as percent) | 98.00% | ||||||||||||
Threshold trading days | d | 5 | ||||||||||||
Threshold consecutive trading days | d | 5 | ||||||||||||
Principal amount | $ 1,000 | ||||||||||||
Convertible senior notes | Convertible Senior Notes Due, Initially Placement | |||||||||||||
Face amount of debt | 100,000,000 | ||||||||||||
Debt issuance costs | 3,300,000 | ||||||||||||
Convertible senior notes | Convertible Senior Notes Due, Additional Option Exercised | |||||||||||||
Face amount of debt | 15,000,000 | ||||||||||||
Debt issuance costs | $ 1,900,000 |
Debt (Annual Maturities of Long
Debt (Annual Maturities of Long-Term Debt Outstanding) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2019 | $ 22,007 |
2020 | 22,717 |
2021 | 22,800 |
2022 | 117,553 |
2023 | 233,108 |
Thereafter | 296,323 |
Total | $ 714,508 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Gain on conversion option derivative | $ 8.2 | |
Short-term Investments | Brazil | ||
Available for sale securities | $ 32.3 | $ 16.7 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values of Long-Term Debt Instrument) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Amount | $ 584,934 | $ 565,494 |
Estimated Fair Value | 557,034 | 510,495 |
Brazil equipment financing | ||
Carrying Amount | 238,380 | 242,883 |
Estimated Fair Value | 233,581 | 237,958 |
Bank bank loans | ||
Carrying Amount | 169,946 | 200,567 |
Estimated Fair Value | 119,218 | 144,312 |
Brazil spectrum financing | ||
Carrying Amount | 104,344 | 122,044 |
Estimated Fair Value | 123,531 | 128,225 |
Convertible senior notes | ||
Carrying Amount | 72,264 | 0 |
Estimated Fair Value | $ 80,704 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) R$ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2016 | Aug. 31, 2016BRL (R$) | May 31, 2016USD ($) | May 31, 2016BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017USD ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2016USD ($) | Dec. 31, 2016BRL (R$) | |
Remaining operating lease terms of agreements minimum | 1 year | 1 year | ||||||||
Remaining operating lease terms of agreements maximum | 15 years | 15 years | ||||||||
Remaining operating office lease terms of agreements minimum | 1 year | 1 year | ||||||||
Remaining operating office lease terms of agreements maximum | 10 years | 10 years | ||||||||
Total rent expenses under operating lease | $ 137.4 | $ 178.5 | $ 164.6 | |||||||
Effective income tax rate on leases (as percent) | 10.00% | 10.00% | ||||||||
Purchase obligation | $ 89.3 | |||||||||
Estimate of possible loss | 890 | |||||||||
Period One | ||||||||||
Purchase obligation | 48.8 | |||||||||
Period Two | ||||||||||
Purchase obligation | 40.5 | |||||||||
Brazil | ||||||||||
Total rent expenses under operating lease | 47.3 | 63.2 | ||||||||
Length of service agreement | 10 years | 10 years | ||||||||
Accrued liabilities | 76.3 | 81.2 | ||||||||
Unasserted claims | 6.7 | 7.4 | ||||||||
Brazil | Roaming and RAN Sharing Commitment | ||||||||||
Commitment, milestone period | 5 years | 5 years | ||||||||
Commitment amount | $ 246.2 | R$ 800 | R$ 482 | |||||||
Brazil | Amended Roaming Sharing Commitment | ||||||||||
Commitment, milestone period | 5 years | |||||||||
Commitment amount | R$ | R$ 318 | |||||||||
Brazil | Roaming Sharing Commitment | ||||||||||
Commitment amount | 51.3 | R$ 199 | $ 77 | R$ 250 | ||||||
Brazil | RAN Sharing Commitment | ||||||||||
Commitment, milestone period | 7 years | |||||||||
Commitment amount | R$ 482 | $ 63.7 | R$ 247 | $ 36.9 | R$ 116 |
Commitments and Contingencies_3
Commitments and Contingencies (Future Minimum Payments for Capital and Operating Lease Obligations) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Capital Leases | |
2017 | $ 34,400 |
2018 | 33,959 |
2019 | 33,294 |
2020 | 31,644 |
2021 | 30,589 |
Thereafter | 453,634 |
Total minimum lease payments | 617,520 |
Less: imputed interest | (551,535) |
Total | 65,985 |
Operating Leases | |
2017 | 106,922 |
2018 | 101,228 |
2019 | 96,719 |
2020 | 86,120 |
2021 | 72,808 |
Thereafter | 628,449 |
Total minimum lease payments | 1,092,246 |
Less: imputed interest | 0 |
Total | 1,092,246 |
Total | |
2017 | 141,322 |
2018 | 135,187 |
2019 | 130,013 |
2020 | 117,764 |
2021 | 103,397 |
Thereafter | 1,082,083 |
Total minimum lease payments | 1,709,766 |
Less: imputed interest | (551,535) |
Total | $ 1,158,231 |
Income Taxes (Income from Conti
Income Taxes (Income from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (13,706) | $ (41,143) | $ (53,843) |
Non-U.S. | (172,540) | (305,631) | (1,482,928) |
Total | $ (186,246) | $ (346,774) | $ (1,536,771) |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 0 | $ 0 | $ 0 |
Foreign | 0 | 5,779 | (291) |
Total current income tax benefit (provision) | 0 | 5,779 | (291) |
Federal | 0 | 0 | 2,864 |
State, net of Federal tax benefit | 0 | 0 | 319 |
Foreign | 0 | 568 | 0 |
Total deferred income tax benefit | 0 | 568 | 3,183 |
Total income tax benefit | $ 0 | $ 6,347 | $ 2,892 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of the U.S. Statutory Federal Income Tax Rate to Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory Federal tax rate | 21.00% | 35.00% | 35.00% |
Effect of foreign operations | 7.00% | 0.00% | (2.00%) |
Effect of statutory Federal tax rate change on deferred tax asset | 0.00% | (37.00%) | 0.00% |
Change in deferred tax asset valuation allowance | (20.00%) | 16.00% | (32.00%) |
Effect of permanent differences | (6.00%) | (12.00%) | 0.00% |
Other, net | (2.00%) | 0.00% | (1.00%) |
Effective tax rate | 0.00% | 2.00% | 0.00% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Net operating losses and capital loss carryforwards | $ 6,296,017 | $ 6,509,165 |
Allowance for doubtful accounts | 8,248 | 20,122 |
Accrued expenses | 78,786 | 53,867 |
Accrual for contingent liabilities | 25,753 | 27,016 |
Intangible assets | 88,603 | 121,122 |
Property, plant and equipment | 82,760 | 143,701 |
Leasing related activity | 21,851 | 27,519 |
Equity compensation | 1,333 | 1,151 |
Long term debt | 46,722 | 55,146 |
Inventory reserve | 440 | 717 |
Other | 352 | 1,004 |
Total deferred tax asset before allowances | 6,650,865 | 6,960,530 |
Valuation allowance | (6,622,915) | (6,957,569) |
Total deferred tax asset | 27,950 | 2,961 |
Other | 13,505 | 2,432 |
Deferred commissions | 13,993 | 0 |
Total deferred tax liability | 27,498 | 2,432 |
Net deferred tax asset | $ 452 | $ 529 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Operating loss carryforwards with no expiration | $ 28 |
Net operating loss carryforwards for U.S. Federal and state income tax | $ 926.6 |
Taxable income before net operating loss deduction (as percent) | 30.00% |
Domestic tax authority | |
Net operating loss carryforwards | $ 1,400 |
Operating loss carryfowards, annual limitation | 40.2 |
Foreign tax authority | Brazil | |
Net operating loss carryforwards | $ 2,100 |
Foreign tax authority | Luxembourg | |
Net operating loss carryforwards, expiration period | 17 years |
Foreign tax authority | Luxembourg | Minimum | |
Net operating loss carryforwards | $ 3,400 |
Foreign tax authority | Luxembourg | Maximum | |
Net operating loss carryforwards | 8,700 |
Foreign tax authority | Spain | |
Net operating loss carryforwards | $ 923.2 |
Income Taxes (Deferred Tax As_2
Income Taxes (Deferred Tax Asset Valuation Allowance) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets, valuation allowance | $ 6,622,915 | $ 6,957,569 |
Brazil | ||
Deferred tax assets, valuation allowance | 1,020,400 | 1,162,500 |
U.S. | ||
Deferred tax assets, valuation allowance | 243,100 | 240,400 |
Luxembourg | ||
Deferred tax assets, valuation allowance | 5,128,600 | 5,313,700 |
Spain | ||
Deferred tax assets, valuation allowance | $ 230,800 | $ 241,000 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||
Preferred stock, shares issued (in shares) | 0 | 0 |
Class of Stock [Line Items] | ||
Reserved for future issuance | 5,263,158 | |
2015 Incentive Compensation Plan | ||
Class of Stock [Line Items] | ||
Reserved for future issuance | 582,277 |
Employee Stock and Benefit Pl_3
Employee Stock and Benefit Plans (Narrative) (Details) - USD ($) | Jun. 30, 2015 | Jun. 27, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 26, 2015 |
Number of shares available for grant (in shares) | 5,263,158 | |||||
Expiration period of awards granted | 10 years | |||||
Restricted stock units granted (in shares) | 41,721 | 6,071,457 | ||||
Share-based payment expense related to stock options | $ 800,000 | $ 2,600,000 | $ 2,800,000 | |||
Cash paid for exercises of stock options | $ 2,200,000 | |||||
Vesting rights (as percent) | 33.00% | |||||
Award vesting period | 3 years | |||||
Weighted average fair value of the stock option awards on their grant dates (in dollars per share) | $ 0.84 | $ 0.22 | $ 1.48 | |||
Share-based payment expense related to restricted stock | $ 3,200,000 | $ 2,000,000 | $ 3,400,000 | |||
Pro-rata Options | ||||||
Expiration period of awards granted | 90 days | |||||
Restricted Stock | ||||||
Restricted stock, granted (in shares) | 564,311 | 2,483,806 | ||||
Unrecognized compensation cost | $ 7,700,000 | |||||
Recognized over a weighted average period | 2 years 5 months 23 days | |||||
Stock Options | ||||||
Stock options, granted (in shares) | 1,580,208 | 2,951,875 | 1,000,000 | |||
Unrecognized compensation cost | $ 900,000 | |||||
Recognized over a weighted average period | 2 years 2 months 1 day | |||||
Aggregate intrinsic value of options, outstanding | $ 823,695 |
Employee Stock and Benefit Pl_4
Employee Stock and Benefit Plans (Summary of Stock Option Activity Under All Plans) (Details) - Stock Options - USD ($) | Jun. 30, 2015 | Jun. 27, 2015 | Dec. 31, 2018 | Dec. 31, 2017 |
Number of Options | ||||
Number of Options Outstanding, beginning balance (in shares) | 3,357,698 | |||
Number of Options, Granted (in shares) | 1,580,208 | 2,951,875 | 1,000,000 | |
Number of Options, Exercised (in shares) | (552,363) | |||
Number of Options, Forfeited (in shares) | (832,702) | |||
Number of Options Outstanding, ending balance (in shares) | 2,972,633 | 3,357,698 | ||
Number of Options, Exercisable (in shares) | 818,634 | |||
Weighted Average Exercise Price per Option | ||||
Weighted Average Exercise Price per Option, Outstanding, beginning balance (in dollars per share) | $ 3.16 | |||
Weighted Average Exercise Price per Option, Granted (in dollars per share) | 2.19 | |||
Weighted Average Exercise Price per Option, Exercised (in dollars per share) | 4 | |||
Weighted Average Exercise Price per Option, Forfeited (in dollars per share) | 3.14 | |||
Weighted Average Exercise Price per Option, Outstanding, ending balance (in dollars per share) | 2.69 | $ 3.16 | ||
Weighted Average Exercise Price per Option, ending balance, Exercisable (in dollars per share) | $ 6.01 | |||
Weighted Average Remaining Life | ||||
Weighted Average Remaining Life of Options, Outstanding | 8 years 4 months 28 days | 8 years 9 months 29 days | ||
Weighted Average Remaining Life, Exercisable | 7 years 2 months 19 days | |||
Aggregate Intrinsic Value of Options, Outstanding | $ 823,695 | |||
Aggregate Intrinsic Value of Options, Exercisable | $ 207,454 |
Employee Stock and Benefit Pl_5
Employee Stock and Benefit Plans (Assumptions in Option Pricing Model) (Details) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Risk free interest rate | 1.53% | 1.53% | ||
Risk free interest rate, minimum | 1.53% | |||
Risk free interest rate, maximum | 1.90% | |||
Expected stock price volatility | 40.87% | 40.87% | ||
Expected stock price volatility, minimum | 40.71% | |||
Expected stock price volatility, maximum | 40.87% | |||
Expected term in years | 5 years 1 month 28 days | 5 years 1 month 28 days | 5 years 1 month 28 days | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Employee Stock and Benefit Pl_6
Employee Stock and Benefit Plans (Summary of the Status of Non-Vested Restricted Stock Awards) (Details) - Restricted Stock - $ / shares | Jun. 30, 2015 | Dec. 31, 2018 |
Number of Shares | ||
Restricted stock awards as of December 31, 2017 | 97,350 | |
Granted | 564,311 | 2,483,806 |
Vested | (524,282) | |
Forfeited | (2,447) | |
Restricted stock awards as of December 31, 2018 | 2,054,427 | |
Weighted Average Grant Date Fair Value Per Share | ||
Weighted Average Grant Date Fair Value Per Share, Restricted Stock Awards (in dollars per share) | $ 15.99 | |
Weighted Average Grant Date Fair Value Per Share, Granted (in dollars per share) | 4.15 | |
Weighted Average Grant Date Fair Value Per Share, Vested (in dollars per share) | 4.69 | |
Weighted Average Grant Date Fair Value Per Share, Forfeited (in dollars per share) | 16 | |
Weighted Average Grant Date Fair Value Per Share, Restricted Stock Awards (in dollars per share) | $ 4.56 |
Segment Information (Segment Re
Segment Information (Segment Reporting Information) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Number of reportable segments | segment | 1 | ||||||||||
Operating revenues | $ 141,711 | $ 141,737 | $ 156,008 | $ 181,241 | $ 189,182 | $ 205,423 | $ 225,134 | $ 250,955 | $ 620,697 | $ 870,694 | $ 985,046 |
Segment earnings (losses) | 5,700 | (50,116) | 30,365 | ||||||||
Impairment, restructuring and other charges, net | (18,949) | (175,358) | (1,384,811) | ||||||||
Depreciation and amortization | (28,616) | (35,446) | (172,383) | ||||||||
Foreign currency transaction (losses) gains, net | (49,008) | (1,271) | 76,615 | ||||||||
Interest expense and other, net | (95,373) | (84,583) | (86,557) | ||||||||
Loss from continuing operations before income tax benefit | (186,246) | (346,774) | (1,536,771) | ||||||||
Capital expenditures | 64,226 | 51,103 | 51,307 | ||||||||
Identifiable assets | 1,059,830 | 1,113,522 | 1,059,830 | 1,113,522 | |||||||
Operating Segments | Brazil | |||||||||||
Operating revenues | 620,675 | 870,588 | 984,878 | ||||||||
Segment earnings (losses) | 23,004 | (25,942) | 67,186 | ||||||||
Impairment, restructuring and other charges, net | (18,597) | (174,098) | (1,340,610) | ||||||||
Capital expenditures | 64,226 | 51,103 | 51,307 | ||||||||
Identifiable assets | 857,385 | 965,919 | 857,385 | 965,919 | |||||||
Corporate and Eliminations | |||||||||||
Operating revenues | 22 | 106 | 168 | ||||||||
Segment earnings (losses) | (17,304) | (24,174) | (36,821) | ||||||||
Impairment, restructuring and other charges, net | (352) | (1,260) | (44,201) | ||||||||
Capital expenditures | 0 | 0 | $ 0 | ||||||||
Identifiable assets | $ 202,445 | $ 147,603 | $ 202,445 | $ 147,603 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $ 141,711 | $ 141,737 | $ 156,008 | $ 181,241 | $ 189,182 | $ 205,423 | $ 225,134 | $ 250,955 | $ 620,697 | $ 870,694 | $ 985,046 |
Operating (loss) income | (9,625) | 1,345 | (20,292) | (13,293) | (37,708) | (74,432) | (68,931) | (79,849) | (41,865) | (260,920) | (1,526,829) |
Net (loss) income from continuing operations | 2,132 | (49,721) | (96,626) | (42,031) | (74,797) | (85,488) | (87,467) | (92,675) | (186,246) | (340,427) | (1,533,879) |
Net (loss) income from discontinued operations | $ (5,468) | $ (163) | $ (2,662) | $ (121) | $ (1,562) | $ (92) | $ 2,697 | $ (38) | $ (8,414) | $ 1,005 | $ (19,994) |
Net loss (income) from continuing operations per common share, basic (in dollars per share) | $ 0.02 | $ (0.50) | $ (0.96) | $ (0.42) | $ (0.75) | $ (0.85) | $ (0.87) | $ (0.92) | |||
Net income (loss) from discontinued operations per common share, basic (in dollars per share) | (0.06) | 0 | (0.03) | 0 | (0.02) | 0 | 0.02 | 0 | |||
Net (loss) income from discontinued operations, per common share, diluted (in dollars per share) | 0.02 | (0.50) | (0.96) | (0.42) | (0.75) | (0.85) | (0.87) | (0.92) | |||
Net income (loss) from discontinued operations per common share, diluted (in dollars per share) | $ (0.06) | $ 0 | $ (0.03) | $ 0 | $ (0.02) | $ 0 | $ 0.02 | $ 0 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Registrant (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 142,486 | $ 193,888 |
Short-term investments | 32,329 | 16,711 |
Prepaid expenses and other | 245,916 | 264,017 |
Total current assets | 522,565 | 584,494 |
Total assets | 1,059,830 | 1,113,522 |
Current liabilities | ||
Accrued expenses and other | 298,990 | 308,129 |
Total current liabilities | 359,487 | 358,403 |
Long-term debt | 632,857 | 647,717 |
Other long-term liabilities | 249,055 | 218,590 |
Total NII Holdings stockholders’ deficit | (101,977) | (35,743) |
Total liabilities and stockholders’ deficit | 1,059,830 | 1,113,522 |
NII Holdings Inc. (Parent) [Member] | ||
Current assets | ||
Cash and cash equivalents | 91,046 | 28,167 |
Prepaid expenses and other | 334 | 104 |
Total current assets | 91,380 | 28,271 |
Long-term intercompany receivables | 15 | 15 |
Other assets | 2 | 2 |
Total assets | 91,397 | 28,288 |
Current liabilities | ||
Short-term intercompany payables | 1,439 | 1,439 |
Accrued expenses and other | 1,887 | 0 |
Total current liabilities | 3,326 | 1,439 |
Long-term debt | 72,264 | 0 |
Other long-term liabilities | 197,376 | 138,037 |
Total liabilities | 272,966 | 139,476 |
Total NII Holdings stockholders’ deficit | (181,569) | (111,188) |
Total liabilities and stockholders’ deficit | $ 91,397 | $ 28,288 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of Registrant (Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Operating revenues | $ 141,711 | $ 141,737 | $ 156,008 | $ 181,241 | $ 189,182 | $ 205,423 | $ 225,134 | $ 250,955 | $ 620,697 | $ 870,694 | $ 985,046 |
Selling, general and administrative | 308,828 | 510,168 | 560,760 | ||||||||
Impairment, restructuring and other charges, net | 18,949 | 175,358 | 1,384,811 | ||||||||
Operating expenses | 662,562 | 1,131,614 | 2,511,875 | ||||||||
Operating loss | (9,625) | 1,345 | (20,292) | (13,293) | (37,708) | (74,432) | (68,931) | (79,849) | (41,865) | (260,920) | (1,526,829) |
Interest expense, net | (100,513) | (118,605) | (113,732) | ||||||||
Other income (expense), net | (7,217) | (7,485) | (10,514) | ||||||||
Other (expense) income | (144,381) | (85,854) | (9,942) | ||||||||
Loss from continuing operations before income taxes | (186,246) | (346,774) | (1,536,771) | ||||||||
Income tax benefit | 0 | 6,347 | 2,892 | ||||||||
Loss from continuing operations | 2,132 | (49,721) | (96,626) | (42,031) | (74,797) | (85,488) | (87,467) | (92,675) | (186,246) | (340,427) | (1,533,879) |
Loss from discontinued operations, net of income taxes | $ 5,468 | $ 163 | $ 2,662 | $ 121 | $ 1,562 | $ 92 | $ (2,697) | $ 38 | 8,414 | (1,005) | 19,994 |
Net loss attributable to NII Holdings | (143,080) | (293,147) | (1,553,873) | ||||||||
Comprehensive loss, net of income taxes | |||||||||||
Foreign currency translation adjustment | 38,804 | 7,360 | 169,785 | ||||||||
Other comprehensive income | 55,446 | 8,820 | 169,785 | ||||||||
Net loss attributable to NII Holdings | (143,080) | (293,147) | (1,553,873) | ||||||||
Total comprehensive loss attributable to NII Holdings | (104,276) | (285,787) | (1,384,088) | ||||||||
NII Holdings Inc. (Parent) [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Operating revenues | 0 | 0 | 0 | ||||||||
Selling, general and administrative | 54 | 0 | 0 | ||||||||
Impairment, restructuring and other charges, net | 0 | 0 | 36,839 | ||||||||
Depreciation and amortization | 0 | 0 | 1,116 | ||||||||
Operating expenses | 54 | 0 | 37,955 | ||||||||
Operating loss | (54) | 0 | (37,955) | ||||||||
Interest expense, net | (4,207) | 0 | 0 | ||||||||
Intercompany interest expense | 0 | 0 | (117,078) | ||||||||
Intercompany interest income | 1,101 | 231 | 197 | ||||||||
Equity in loss of affiliates | (146,344) | (292,240) | (1,401,998) | ||||||||
Other income (expense), net | 6,424 | (1,138) | (206) | ||||||||
Other (expense) income | (143,026) | (293,147) | (1,519,085) | ||||||||
Loss from continuing operations before income taxes | (143,080) | (293,147) | (1,557,040) | ||||||||
Income tax benefit | 0 | 0 | 3,183 | ||||||||
Loss from continuing operations | (143,080) | (293,147) | (1,553,857) | ||||||||
Loss from discontinued operations, net of income taxes | 0 | 0 | 16 | ||||||||
Net loss attributable to NII Holdings | (143,080) | (293,147) | (1,553,873) | ||||||||
Comprehensive loss, net of income taxes | |||||||||||
Foreign currency translation adjustment | 38,804 | 7,360 | 169,785 | ||||||||
Other comprehensive income | 38,804 | 7,360 | 169,785 | ||||||||
Net loss attributable to NII Holdings | (143,080) | (293,147) | (1,553,873) | ||||||||
Total comprehensive loss attributable to NII Holdings | $ (104,276) | $ (285,787) | $ (1,384,088) |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of Registrant (Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (143,080) | $ (293,147) | $ (1,553,873) |
Net cash used in operating activities | (125,627) | (87,138) | (45,205) |
Cash flows from investing activities: | |||
Other, net | 31 | 275 | (2,243) |
Net cash (used in) provided by investing activities | (44,236) | 18,833 | (8,589) |
Cash flows from financing activities: | |||
Gross proceeds from issuance of convertible notes | 115,000 | 0 | 0 |
Payments of debt financing costs | (9,299) | (2,026) | 0 |
Other, net | 2,206 | (1,193) | 0 |
Net cash provided by (used in) financing activities | 116,497 | (48,690) | (93,004) |
Net decrease in cash, cash equivalents and restricted cash | (55,039) | (116,454) | (147,843) |
Cash, cash equivalents and restricted cash, beginning of year | 305,778 | 422,232 | 570,075 |
Cash, cash equivalents and restricted cash, end of year | 250,739 | 305,778 | 422,232 |
NII Holdings Inc. (Parent) [Member] | |||
Cash flows from operating activities: | |||
Net loss | (143,080) | (293,147) | (1,553,873) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | 104,103 | 277,065 | 1,554,075 |
Net cash used in operating activities | (38,977) | (16,082) | 202 |
Cash flows from investing activities: | |||
Investments in subsidiaries | (10,043) | (10,043) | (36,356) |
Return of investments in subsidiaries | 162 | 162 | 34,260 |
Other, net | 0 | 0 | (16) |
Net cash (used in) provided by investing activities | (9,881) | (9,881) | (2,112) |
Cash flows from financing activities: | |||
Gross proceeds from issuance of convertible notes | 115,000 | 0 | 0 |
Payments of debt financing costs | (3,292) | 0 | 0 |
Other, net | 29 | 29 | 0 |
Net cash provided by (used in) financing activities | 111,737 | 29 | 0 |
Net decrease in cash, cash equivalents and restricted cash | 62,879 | (25,934) | (1,910) |
Cash, cash equivalents and restricted cash, beginning of year | 28,167 | 54,101 | 56,011 |
Cash, cash equivalents and restricted cash, end of year | $ 91,046 | $ 28,167 | $ 54,101 |
Schedule I - Condensed Financ_6
Schedule I - Condensed Financial Information of Registrant (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Information Disclosure [Abstract] | |||
Cash dividends | $ 0 | $ 0 | $ 33,900,000 |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Allowance for doubtful accounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Year | $ 42,011 | $ 54,221 | $ 39,033 | |
Charged to Costs and Expenses | 36,042 | 76,518 | 77,883 | |
Deductions and Other Adjustments | [1] | (58,416) | (88,728) | (62,695) |
Balance at End of Year | 19,637 | 42,011 | 54,221 | |
Valuation allowance for deferred tax assets | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Year | 6,957,569 | 6,945,044 | 5,290,813 | |
Charged to Costs and Expenses | (164,607) | 28,637 | 1,555,006 | |
Deductions and Other Adjustments | [1] | (170,047) | (16,112) | 99,225 |
Balance at End of Year | $ 6,622,915 | $ 6,957,569 | $ 6,945,044 | |
[1] | Balance atBeginning ofYear Charged toCosts andExpenses Deductionsand OtherAdjustments (1) Balance atEnd ofYearYear Ended December 31, 2018 Allowance for doubtful accounts$42,011 $36,042 $(58,416) $19,637Valuation allowance for deferred tax assets$6,957,569 $(164,607) $(170,047) $6,622,915Year Ended December 31, 2017 Allowance for doubtful accounts$54,221 $76,518 $(88,728) $42,011Valuation allowance for deferred tax assets$6,945,044 $28,637 $(16,112) $6,957,569Year Ended December 31, 2016 Allowance for doubtful accounts$39,033 $77,883 $(62,695) $54,221Valuation allowance for deferred tax assets$5,290,813 $1,555,006 $99,225 $6,945,044_______________________________________(1)Includes the impact of foreign currency translation adjustments. |