Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Cover [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Trading Symbol | CK0001689382 |
Entity Registrant Name | Trilogy International Partners Inc. |
Entity Central Index Key | 0001689382 |
Entity Filer Category | Non-accelerated Filer |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
Document Shell Company Report | false |
Entity Interactive Data Current | Yes |
Entity Address, State or Province | WA |
Entity File Number | 000-55716 |
Entity Incorporation, State or Country Code | A1 |
Entity Address, Address Line One | 155 108th Avenue NE |
Entity Address, Address Line Two | Suite 400 |
Entity Address, City or Town | Bellevue |
Entity Address, Postal Zip Code | 98004 |
Document Annual Report | true |
Document Transition Report | false |
Document Registration Statement | false |
Entity Common Stock, Shares Outstanding | 58,451,931 |
Title of 12(g) Security | Common Shares, no par value |
Security Exchange Name | NONE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 76,729 | $ 43,942 |
Short-term investments | 1,986 | |
Accounts receivable, net | 60,881 | 71,917 |
Equipment Installment Plan ("EIP") receivables, net | 31,750 | 22,165 |
Inventory | 19,477 | 45,957 |
Prepaid expenses and other current assets | 25,569 | 12,609 |
Total current assets | 214,406 | 198,576 |
Property and equipment, net | 378,861 | 394,841 |
License costs and other intangible assets, net | 95,792 | 80,987 |
Goodwill | 9,046 | 9,014 |
Long-term EIP receivables | 35,760 | 21,216 |
Deferred income taxes | 73,216 | 10,746 |
Other assets | 31,546 | 23,648 |
Total assets | 838,627 | 739,028 |
Current liabilities: | ||
Accounts payable | 28,500 | 36,717 |
Construction accounts payable | 28,753 | 26,834 |
Current portion of debt | 32,428 | 8,293 |
Customer deposits and unearned revenue | 20,237 | 16,995 |
Other current liabilities and accrued expenses | 123,612 | 143,435 |
Total current liabilities | 233,530 | 232,274 |
Long-term debt | 528,738 | 498,532 |
Deferred gain | 49,114 | |
Deferred income taxes | 9,737 | 11,439 |
Other non-current liabilities | 25,300 | 30,399 |
Total liabilities | 846,419 | 772,644 |
Commitments and contingencies | ||
Shareholders' deficit: | ||
Common shares and additional paid-in capital; no par value, unlimited authorized, 58,451,931 and 57,713,836 shares issued and outstanding | 3,439 | 286 |
Accumulated deficit | (71,134) | (75,309) |
Accumulated other comprehensive income | 4,415 | 3,428 |
Total Trilogy International Partners Inc. shareholders' deficit | (63,280) | (71,595) |
Noncontrolling interests | 55,488 | 37,979 |
Total shareholders' deficit | (7,792) | (33,616) |
Total liabilities and shareholders' deficit | $ 838,627 | $ 739,028 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | ||
Common stock, no par value | ||
Common stock, shares, issued | 58,451,931 | 57,713,836 |
Common stock, shares, outstanding | 58,451,931 | 57,713,836 |
Common stock, shares authorized | Unlimited | Unlimited |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues | ||||
Total revenues | $ 693,927 | $ 798,175 | $ 778,900 | |
Operating expenses | ||||
Cost of equipment sales | 164,543 | 233,781 | 197,685 | |
Sales and marketing | 83,142 | 100,623 | 103,348 | |
General and administrative | 121,692 | 126,610 | 121,410 | |
Depreciation, amortization and accretion | 109,845 | 111,889 | 106,909 | |
(Gain) loss on disposal of assets and sale-leaseback transaction | (11,169) | 1,346 | 682 | |
Total operating expenses | 665,269 | 776,590 | 744,716 | |
Operating income | 28,658 | 21,585 | 34,184 | |
Other (expenses) income | ||||
Interest expense | (45,988) | (45,913) | (59,754) | |
Change in fair value of warrant liability | 1 | 6,361 | 9,053 | |
Debt modification and extinguishment costs | (4,192) | (6,689) | ||
Other, net | 555 | (4,682) | 1,329 | |
Total other expenses, net | (45,432) | (48,426) | (56,061) | |
Loss before income taxes | (16,774) | (26,841) | (21,877) | |
Income tax benefit (expense) | 40,796 | (4,889) | (8,181) | |
Net income (loss) | 24,022 | (31,730) | (30,058) | |
Less: Net (income) loss attributable to noncontrolling interests and prior controlling interest | (21,144) | 11,525 | 14,721 | |
Net income (loss) attributable to Trilogy International Partners Inc. | 2,878 | (20,205) | (15,337) | |
Comprehensive income (loss) | ||||
Net income (loss) | 24,022 | (31,730) | (30,058) | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 1,954 | (6,335) | 3,198 | |
Net gain (loss) on derivatives and short-term investments | 1 | (3) | 106 | |
Other comprehensive income (loss) | 1,955 | (6,338) | 3,304 | |
Comprehensive income (loss) | 25,977 | (38,068) | (26,754) | |
Comprehensive (income) loss attributable to noncontrolling interests and prior controlling interest | (22,112) | 14,957 | 9,928 | |
Comprehensive income (loss) attributable to Trilogy International Partners Inc. | $ 3,865 | $ (23,111) | $ (16,826) | |
Net income (loss) attributable to Trilogy International Partners Inc. per share: | ||||
Basic (see Note 13 - Earnings per Share) | $ 0.05 | $ (0.38) | $ (0.34) | [1] |
Diluted (see Note 13 - Earnings per Share) | $ 0.05 | $ (0.39) | $ (0.41) | [1] |
Weighted average common shares: | ||||
Basic | 56,629,405 | 53,678,914 | 44,692,369 | |
Diluted | 56,787,345 | 82,193,501 | 81,750,658 | |
Wireless Service | ||||
Revenues | ||||
Total revenues | $ 457,192 | $ 500,327 | $ 526,199 | |
Wireline Service | ||||
Revenues | ||||
Total revenues | 69,317 | 61,804 | 57,131 | |
Equipment Sales | ||||
Revenues | ||||
Total revenues | 157,506 | 221,610 | 178,836 | |
Non-subscriber ILD and other Revenues | ||||
Revenues | ||||
Total revenues | 9,912 | 14,434 | 16,734 | |
Service | ||||
Operating expenses | ||||
Cost of service, exclusive of depreciation, amortization and accretion shown separately | $ 197,216 | $ 202,341 | $ 214,682 | |
[1] | For the period from February 7, 2017 through December 31, 2017 |
Consolidated Statement of Mezza
Consolidated Statement of Mezzanine Equity and Shareholders' (Deficit) Equity/Members' Deficit - USD ($) $ in Thousands | Total | Members' Investment and Mezzanine EquityTrilogy International Partners LLC | Accumulated Deficit | Accumulated DeficitTrilogy International Partners LLC | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Trilogy International Partners LLC | Noncontrolling Interests | Noncontrolling InterestsTrilogy International Partners LLC | Common Stock | Additional Paid-in Capital |
Balance at Dec. 31, 2016 | $ (148,885) | $ 372,558 | $ (598,141) | $ 6,151 | $ 70,547 | |||||
Trilogy LLC loan conversion | (4,528) | 98 | 4,430 | |||||||
Net income (loss) | (1,066) | (2,703) | 1,637 | |||||||
Other comprehensive income (loss) | 6,395 | 4,126 | 2,269 | |||||||
Member contribution | 1,400 | 1,400 | ||||||||
Changes in noncontrolling interests | 143 | 143 | ||||||||
Balance at Feb. 06, 2017 | (142,013) | 369,430 | (600,844) | 10,375 | 79,026 | |||||
Balance at Dec. 31, 2016 | $ (148,885) | 372,558 | (598,141) | 6,151 | 70,547 | |||||
Dividend declared, shares | 17,416 | |||||||||
Net income (loss) | $ (30,058) | |||||||||
Other comprehensive income (loss) | 3,304 | |||||||||
Balance at Dec. 31, 2017 | 6,190 | $ (53,259) | $ 6,059 | $ 53,390 | ||||||
Balance ( in shares) at Dec. 31, 2017 | 53,815,631 | |||||||||
Balance at Feb. 06, 2017 | (142,013) | 369,430 | (600,844) | 10,375 | 79,026 | |||||
Share exchange with 2degrees noncontrolling interests | (1,400) | 4,785 | 1,528 | (7,713) | ||||||
Sale of common shares, value | 202,159 | $ 202,159 | ||||||||
Sale of common shares | 44,177,149 | |||||||||
Purchase of Trilogy LLC units by TIP Inc., net of issuance costs | (7,838) | 191,449 | (199,287) | |||||||
Initial allocation of noncontrolling interest of Trilogy LLC Class C units (redeemable units) | $ (565,664) | (15,780) | $ 600,844 | 6,311 | $ (11,903) | 60,377 | $ (71,313) | (2,872) | ||
Share purchase warrants reclassified to liability | (15,298) | (15,298) | ||||||||
Dividends declared and paid | (537) | (662) | 125 | |||||||
Dividend declared, shares | 17,416 | |||||||||
Equity-based compensation | 3,475 | 1,764 | 1,711 | |||||||
Net income (loss) | (28,992) | (15,337) | (13,655) | |||||||
Other comprehensive income (loss) | (3,091) | (1,489) | (1,602) | |||||||
Redemption of Trilogy LLC Class C units and other | (275) | (6,182) | 1,237 | 6,506 | (1,836) | |||||
Redemption of Trilogy LLC Class C units and other | 9,621,066 | |||||||||
Balance at Dec. 31, 2017 | 6,190 | (53,259) | 6,059 | 53,390 | ||||||
Balance ( in shares) at Dec. 31, 2017 | 53,815,631 | |||||||||
Dividends declared and paid | $ (7,573) | (851) | (6,837) | 115 | ||||||
Dividend declared, shares | 34,734 | 34,734 | ||||||||
Equity-based compensation | $ 5,985 | 2,635 | 3,350 | |||||||
Net income (loss) | (31,730) | (20,205) | (11,525) | |||||||
Other comprehensive income (loss) | (6,338) | (2,906) | (3,432) | |||||||
Issuance of shares related to RSUs, redemption of Trilogy LLC Class C units and other | (150) | (994) | 275 | 3,748 | (3,179) | |||||
Issuance of shares related to RSUs, redemption of Trilogy LLC Class C units and other | 3,863,471 | |||||||||
Balance at Dec. 31, 2018 | $ (33,616) | (75,309) | 3,428 | 37,979 | 286 | |||||
Balance ( in shares) at Dec. 31, 2018 | 57,713,836 | 57,713,836 | ||||||||
Cumulative effect of accounting changes | $ 4,385 | 2,158 | 2,227 | |||||||
Dividends declared and paid | $ (8,437) | (861) | (7,685) | 109 | ||||||
Dividend declared, shares | 72,557 | 72,557 | ||||||||
Equity-based compensation | $ 4,042 | 567 | 3,475 | |||||||
Net income (loss) | 24,022 | 2,878 | 21,144 | |||||||
Other comprehensive income (loss) | 1,955 | 987 | 968 | |||||||
Issuance of shares related to RSUs, redemption of Trilogy LLC Class C units and other | (143) | 288 | (431) | |||||||
Issuance of shares related to RSUs, redemption of Trilogy LLC Class C units and other | 665,538 | |||||||||
Balance at Dec. 31, 2019 | $ (7,792) | $ (71,134) | $ 4,415 | $ 55,488 | $ 3,439 | |||||
Balance ( in shares) at Dec. 31, 2019 | 58,451,931 | 58,451,931 |
Consolidated Statement of Mez_2
Consolidated Statement of Mezzanine Equity and Shareholders' (Deficit) Equity/Members' Deficit (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends payable, date Declared | Apr. 2, 2019 | Apr. 2, 2018 | Mar. 21, 2017 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net income (loss) | $ 24,022 | $ (31,730) | $ (30,058) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Provision for doubtful accounts | 11,811 | 12,790 | 15,911 |
Depreciation, amortization and accretion | 109,845 | 111,889 | 106,909 |
Equity-based compensation | 4,041 | 5,856 | 2,853 |
(Gain) loss on disposal of assets and sale-leaseback transaction | (11,169) | 1,346 | 682 |
Non-cash interest expense, net | 2,877 | 3,257 | 3,468 |
Settlement of cash flow hedges | (1,064) | (1,371) | (1,602) |
Change in fair value of warrant liability | (1) | (6,361) | (9,053) |
Debt modification and extinguishment costs | 4,192 | 6,689 | |
Non-cash loss from change in fair value on cash flow hedges | 1,538 | 1,362 | 1,621 |
Unrealized loss on foreign exchange transactions | 1,223 | 1,404 | 982 |
Deferred income taxes | (64,652) | (2,612) | 529 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,262 | (10,292) | (18,747) |
EIP receivables | (24,797) | (14,687) | 1,356 |
Inventory | 26,909 | (25,783) | (105) |
Prepaid expenses and other current assets | (5,268) | 2,400 | 3,782 |
Other assets | (4,529) | (4,339) | (3,432) |
Accounts payable | (8,133) | 3,857 | (8,987) |
Other current liabilities and accrued expenses | (19,468) | 26,564 | (5,512) |
Customer deposits and unearned revenue | 1,224 | (3,140) | (2,273) |
Net cash provided by operating activities | 45,671 | 74,602 | 65,013 |
Investing activities: | |||
Purchase of property and equipment | (85,212) | (82,924) | (92,352) |
Proceeds from sale-leaseback transaction | 70,586 | ||
Purchase of spectrum licenses and other additions to license costs | (30,693) | (714) | (3,279) |
Maturities and sales of short-term investments | 1,987 | 33,157 | 23,931 |
Purchase of short-term investments | (10,935) | (48,088) | |
Other, net | (2,934) | (119) | 582 |
Net cash used in investing activities | (46,266) | (61,535) | (119,206) |
Financing activities: | |||
Proceeds from debt | 214,471 | 343,723 | 514,485 |
Payments of debt, including sale-leaseback and EIP receivables financing obligations | (201,480) | (338,769) | (613,487) |
Proceeds from sale-leaseback financing obligation | 18,945 | ||
Proceeds from EIP receivables financing obligation | 17,452 | ||
Dividends to shareholders and noncontrolling interest | (8,437) | (7,573) | (537) |
Payments of financed license obligation | (6,390) | (6,233) | (10,393) |
Debt issuance, modification and extinguishment costs | (447) | (6,892) | (9,151) |
Proceeds from equity issuance, net of issuance costs | 199,267 | ||
Purchase of shares from noncontrolling interest | (1,675) | ||
Capital contributions from equity holders | 1,400 | ||
Other, net | (1,362) | (150) | |
Net cash provided by (used in) financing activities | 32,752 | (15,894) | 79,909 |
Net increase (decrease) in cash and cash equivalents | 32,157 | (2,827) | 25,716 |
Cash and cash equivalents, beginning of period | 43,942 | 47,093 | 21,154 |
Effect of exchange rate changes | 630 | (324) | 223 |
Cash and cash equivalents, end of period | $ 76,729 | $ 43,942 | $ 47,093 |
DESCRIPTION OF BUSINESS, BASIS
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business On February 7, 2017, Trilogy International Partners LLC (“Trilogy LLC”), a Washington limited liability company, and Alignvest Acquisition Corporation (“Alignvest”), completed a court approved plan of arrangement (the “Arrangement”) pursuant to an arrangement agreement dated November 1, 2016 (as amended December 20, 2016, the “Arrangement Agreement”). Alignvest, a special purpose acquisition corporation, was incorporated under the Business Corporations Act of Ontario (“OBCA”) on May 11, 2015 for the purpose of effecting an acquisition of one or more businesses or assets, referred to as Alignvest’s “qualifying acquisition”. The consummation of the Arrangement with Trilogy LLC represented Alignvest’s qualifying acquisition. At the effective time of the Arrangement, Alignvest’s name was changed to Trilogy International Partners Inc. (“TIP Inc.” and together with its consolidated subsidiaries, the “Company”). Immediately following the completion of the Arrangement, TIP Inc. was continued out of the jurisdiction of Ontario under the OBCA and into the jurisdiction of British Columbia under the Business Corporation Act For accounting purposes, the Arrangement was treated as a “reverse acquisition” and recapitalization; therefore, Trilogy LLC was considered the accounting acquirer of TIP Inc. Accordingly, Trilogy LLC’s historical financial statements as of the period ended and for the periods ended prior to the acquisition are presented as the historical financial statements of TIP Inc. prior to the date of the acquisition. As a result of the Arrangement, TIP Inc., through a wholly owned subsidiary, obtained a controlling interest in and thus consolidates Trilogy LLC. To effect the Arrangement, the following organizational transactions occurred prior to or concurrent with the consummation of the Arrangement: • On January 9, 2017, Trilogy LLC converted an outstanding intercompany loan to its New Zealand subsidiary, Two Degrees Mobile Limited (“2degrees”), into 10,920,280 shares of 2degrees in full repayment of the outstanding $13.9 million loan balance. The conversion increased Trilogy LLC’s ownership in 2degrees by 1% from 62.9% to 63.9%. The carrying amounts of the noncontrolling interest attributable to 2degrees were adjusted to reflect the change in ownership interests. • On February 7, 2017, Trilogy LLC indirectly acquired noncontrolling interests in 2degrees in exchange for common shares of TIP Inc. (the “Common Shares”) and $1.4 million in cash. The transaction increased Trilogy LLC’s ownership in 2degrees from 63.9% to 73.3%. The carrying amounts of the noncontrolling interests attributable to 2degrees were adjusted to reflect the change in ownership interests. • Trilogy LLC’s equity structure was recapitalized into 157,339,668 Trilogy LLC Class A Units (the “Class A Units”), 44,177,149 Trilogy LLC Class B Units (the “Class B Units”) and 39,142,787 Trilogy LLC Class C Units (the “Class C Units”). The Class A Units have nominal economic value, represent 100% of the voting rights in Trilogy LLC and do not participate in any appreciation in the value of Trilogy LLC. The Class B U • Trilogy LLC issued the new Class A Units and Class B Units to wholly owned subsidiaries of TIP Inc. in exchange for $199.3 million of cash, representing the remaining proceeds from TIP Inc.’s 2015 initial public offering along with private placements that closed concurrently with the Arrangement, net of certain redemptions and expenses of TIP Inc. As a result of the exchange, TIP Inc. acquired, directly or indirectly, all the voting interests and a 53.0% equity interest in Trilogy LLC. The number of Class B Units issued and outstanding is equal to, and at all times is required to be equal to, the number of outstanding Common Shares of TIP Inc. See Note 11 – Equity. • The Class C Units were issued to the legacy equity holders of Trilogy LLC and can be redeemed by the holders thereof for, at Trilogy LLC’s option, Common Shares on a one-for-one lock-up • TIP Inc.’s authorized capital was amended to create one special voting share (the “Special Voting Share”) and an unlimited number of Common Shares. The Special Voting Share was issued to the trustee under a voting trust agreement and entitles the Class C Unit holders to exercise their voting rights in TIP Inc. on an as converted basis. Holders of Common Shares and the Special Voting Share vote together as a single class of shares. • The 13,402,685 share purchase warrants of Alignvest were deemed to be amended to be share purchase warrants to acquire Common Shares. Additionally, the warrants were reclassified from equity to a liability, as the warrants were determined to be written options not indexed to Common Shares. See Note 11 – Equity. • As a result of the transaction, TIP Inc. is subject to income tax in both the U.S. and Canada. The losses generated by TIP Inc. from the date of the Arrangement are offset by a full valuation allowance. As a result of these organizational transactions and the consummation of the Arrangement, TIP Inc. owns and controls a majority stake in Trilogy LLC. Through subsidiaries, Trilogy LLC provides wireless voice and data communications in New Zealand and Bolivia including local, international long distance (“ILD”) and roaming services, for both customers and international visitors roaming on its networks. GSM-based Below is a brief summary of each of the Company’s operations: New Zealand: 2degrees was formed under the laws of New Zealand on February 15, 2001. 2degrees holds spectrum licenses to provide nationwide wireless communication services. 2degrees launched commercial operations in 2009 as the third operator in New Zealand. 2degrees provides voice, data and long distance services to its customers over 3G and 4G networks. 2degrees maintains inbound visitor roaming and international outbound roaming agreements with various international carriers. 2degrees offers its mobile communications services through both prepaid and postpaid payment plans. Commencing in 2015, 2degrees also began offering fixed broadband communications services to residential and enterprise customers . As of December 31, 2019, through its consolidated subsidiaries, Trilogy LLC’s ownership interest in 2degrees was 73.2%. Bolivia: Empresa de Telecomunicaciones NuevaTel (PCS de Bolivia), S.A. (“NuevaTel”) was formed under the laws of Bolivia in November, 1999 to engage in Personal Communication Systems (“PCS”) operations. NuevaTel was awarded its first PCS license in 1999 and commenced commercial service in November 2000 under the brand name Viva. NuevaTel operates a GSM network along with 3G and 4G networks. These networks provide voice and data services, including high-speed Internet, messaging services and application and content downloads. NuevaTel offers its services through both prepaid and postpaid payment plans, although the majority of NuevaTel’s subscribers pay on a prepaid basis. In addition to mobile voice and data services, NuevaTel offers fixed LTE wireless services and public telephony services. NuevaTel’s public telephony service utilizes wireless pay telephones located in stores and call centers that are owned and managed by NuevaTel resellers. As of December 31, 2019, through its consolidated subsidiaries, Trilogy LLC’s ownership interest in NuevaTel was 71.5%. Basis of Presentation and Principles of Consolidation The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company consolidates majority-owned subsidiaries over which it exercises control, as well as variable interest entities (“VIEs”) where it is deemed to be the primary beneficiary and thus VIEs are required to be consolidated in our financial statements. All significant intercompany transactions and accounts have been eliminated in consolidation for all periods presented. Certain amounts in the prior period Consolidated Balance Sheet related to certain deferred tax liabilities and the tax paying components to which they apply have been reclassified to conform to the current presentation. The Company has two reportable segments, New Zealand and Bolivia. Unallocated corporate operating expenses, which pertain primarily to corporate administrative functions that support the segments, but are not specifically attributable to or managed by any segment, are presented as a reconciling item between total segment results and consolidated financial results. Additional details on our reportable segments are included in Note 18 – Segment Information. Significant Accounting Policies Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and the amounts of revenues and expenses reported for the periods presented. Certain estimates require difficult, subjective or complex judgments about matters that are inherently uncertain. Actual results could differ from those estimates. Examples of significant estimates include the allowance for doubtful accounts, the useful lives of property and equipment, amortization periods for intangible assets, fair value of financial instruments and equity-based compensation, imputed discount on equipment installment receivables, cost estimates for asset retirement obligations, realizability of deferred income taxes, fair value measurements related to goodwill, spectrum licenses and intangibles, projections used in impairment analysis, evaluation of minimum operating lease terms, the allocation of purchase price in connection with business combinations and the period for recognizing prepaid and postpaid revenues based on breakage. Cash and Cash Equivalents: Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less at the acquisition date or with a variable rate which can be liquidated on demand. The balance of cash and cash equivalents held by our consolidated subsidiaries was $67.8 million and $39.3 million as of December 31, 2019 and 2018, respectively. Of these balances , $16.4 million and $12.1 million was held by 2degrees and $51.3 million and $27.0 million was held by NuevaTel, as of December 31, 2019 and 2018, respectively. Short-term Investments: The Company’s short-term investments, consisting primarily of U.S. Treasury securities and commercial paper with original maturities of more than three months from the date of purchase, are considered available-for-sale Restricted Cash: The Company classifies cash as restricted when the cash is unavailable for use in general operations. The Company had $1.7 million and $0.5 million of restricted cash as of December 31, 2019 and 2018, respectively, primarily held to offset the current installment due under the Bolivian 2021 Syndicated Loan agreement (see Note 7 – Debt) or held as collateral for performance obligations under certain contracts with suppliers. Accounts Receivable, net: Accounts receivable consist primarily of amounts billed and due from customers, other wireless service providers, and dealers and are generally unsecured. Local interconnection and telecom cooperative receivables due from other wireless service providers represented $17.4 million and $28.9 million of Accounts receivable, net at December 31, 2019 and 2018, respectively. Interconnection receivables and payables are reported on a gross basis i i i I ) Management makes estimates of the uncollectability of its accounts receivable. In determining the adequacy of the allowance for doubtful accounts, management analyzes historical experience and current collection trends, known troubled accounts, receivable aging and current economic trends. The Company writes off account balances against the allowance for doubtful billed accounts when collection efforts are unsuccessful. Provisions for uncollectible receivables are included in General and administrative expenses. The allowance for doubtful accounts was $5.3 million and $6.3 million as of December 31, 2019 and 2018, respectively. EIP Receivables: In New Zealand, 2degrees offers certain wireless customers the option to pay for their handsets in installments over a period of up to 36 months using an EIP. In Bolivia, in 2018, NuevaTel began offering , , 2degrees initially assesses the credit quality of each EIP applicant . At the time of sale of handsets under installment plans, we impute risk adjusted interest on certain receivables associated with EIPs. We record any deferral of this imputed discount as a reduction in EIP receivables, net in our Consolidated Balance Sheets and amortize the deferred amount over the financed device payment term in Non-subscriber The Company establishes an al l In August 2019, 2degrees entered into an EIP receivables secured borrowing arrangement with an intermediary purchasing entity (the “Purchaser”) and financial institutions that lend capital to the Purchaser. The transfer of receivables through this arrangement does not qualify as a sale of financial assets under GAAP and as such is recorded as a secured borrowing. Upon transfer to the Purchaser, the Company does not derecognize the receivables or related allowance for doubtful accounts and unamortized imputed discount. The above summary of EIP receivables accounting policy remains applicable for unbilled EIP receivables sold through this arrangement. For further information, see Note 4 – EIP Receivables. Inventories: Inventory consists primarily of wireless devices and accessories. Cost is determined by the first-in, first-out the , Handset costs in excess of the revenues generated from handset sales, or handset subsidies, are expensed at the time of sale. The Company does not recognize the expected handset subsidies prior to the time of sale because the promotional discount decision is made at the point of sale and/or because the Company expects to recover the handset subsidies through service revenues. For certain inventories held by a third-party distribution and logistics company located in New Zealand, the Company records inventories i Property and Equipment: Property and equipment is recorded at cost or fair value for assets acquired as part of business combinations , 40 pre-construction Interest expense incurred during the construction phase of the Company’s wireless networks is capitalized as part of property and equipment until assets are placed into service. Capitalized interest costs are amortized over the estimated useful lives of the related assets. Capitalized interest for the years ended December 31, 2019, 2018 and 2017 was $1.1 million, $1.2 million and $1.1 million, respectively. In July 2018, 2degrees updated the terms and conditions of the fixed broadband agreements with residential customers. The agreements with new subscribers, starting on July 1, 2018, state that 2degrees will assume ownership of customer premises equipment, i.e., modems, and lease such equipment to these subscribers. As such, in accordance with the applicable accounting guidance for leases, the Company has reclassified its customer premises equipment from Inventory to Equipment i i Income ( ) The Company capitalizes certain costs incurred in connection with developing or acquiring internal use software. Capitalization of software costs commences once selection of a specific software project has been made and the Company approves and commits to funding the project. Capitalized costs include direct development costs associated with internal use software, including internal direct labor costs and external costs of materials and services. Capitalized software costs are included in Property and equipment, net and amortized on a straight-line basis over the estimated useful life of the asset. Costs incurred during the preliminary project stage, as well as maintenance and training costs, are expensed as incurred. The Company records an asset retirement obligation (“ARO”) for the fair value of legal obligations associated with the retirement of tangible long-lived assets and rec ords a Income ( ) The significant assumptions used in estimating the ARO include the following: a probability that the Company’s leases with ARO will be remediated at the lessor’s directive; expected settlement dates that coincide with lease expiration dates plus estimated lease extensions; remediation costs that are indicative of what third party vendors would charge the Company to remediate the sites; expected inflation rates that are consistent with historical inflation rates; and credit-adjusted risk-free interest rates which approximate the Company’s incremental borrowing rates. License Costs and Other Intangible Assets: Intangible assets consist primarily of wireless spectrum licenses in foreign markets, tradenames and subscriber relationships. License costs primarily represent costs incurred to acquire wireless spectrum licenses in foreign markets, which are recorded at cost, and the value attributed to wireless spectrum licenses acquired in business combinations. Amortization begins with the commencement of service to customers . using the straight-line method corresponding to the expiration dates of the licenses as issued by the regulators. Licenses, subject to certain conditions, are usually renewable and are generally non-exclusive. Subscriber relationships were acquired as part of the acquisition in New Zealand of our fixed broadband communications services provider, Snap Limited, in 2015 and relate to established relationships with residential and enterprise customers through contracts for fixed broadband services. Subscriber relationships are amortized over the estimated useful life of 7 years using an accelerated method, which we believe best reflects the estimated pattern in which the economic benefits of the assets will be consumed. Impairment of Long-Lived Assets: The Company evaluates its long-lived assets, including intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Asset groups are determined at the lowest level for which identifiable cash flows are largely independent of cash flows of other groups of assets and liabilities. When the carrying amount of a long-lived asset group is not fully recoverable and exceeds its fair value, an impairment loss is recognized equal to the excess of the asset group’s carrying value over the estimated fair value. We determine fair value by using a combination of comparable market values, estimated future discounted cash flows and appraisals, as appropriate. There were no events or changes in circumstances that indicated impairment would be recorded for long-lived assets for the fiscal years ended December 31, 2019, 2018 and 2017. Goodwill: Goodwill is the excess of the cost of an acquisition of businesses over the fair value of the net identifiable assets acquired as of the acquisition date. The Company reviews goodwill for impairment annually and also during interim periods if events or changes in circumstances indicate the occurrence of a triggering event. During the fourth quarter of fiscal year 2018, we changed the date of our annual impairment test from December 31 to November 30 to align more effectively with the timing of our annual reporting requirements and other administrative processes. We believe the change did not delay, accelerate, or avoid an impairment charge and does not result in adjustments to our financial statements when applied retrospectively. Effective December 31, 2017, we prospectively adopted accounting guidance that simplifies our goodwill impairment testing by eliminating the requirement to calculate the implied fair value of goodwill (formerly “step two”) in the event that an impairment is identified. Instead, an impairment charge is recorded based on the excess of the reporting unit’s carrying amount over its fair value. We may first elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment test. If we do not perform this we will test on Derivative Instruments and Hedging Activities: We employ risk management strategies, which may include the use of interest rate swaps, cross-currency swaps and forward exchange contracts. We do not hold or enter into derivative instruments for trading or speculative purposes. Derivatives are recognized in the Consolidated Balance Sheets at fair value. Changes in the fair values of derivative instruments designated as “cash flow” hedges, to the extent the hedges are highly effective, are recorded in Other comprehensive (loss) income. Derivative instruments not qualifying for hedge accounting or ineffective portions of cash flow hedges, if any, are recognized in current period earnings. The Company assesses, both at inception of the hedge and on an ongoing basis, whether derivatives used as hedging instruments are highly effective in offsetting the changes in the fair value or cash flow of the hedged items. If it is determined that a derivative is not highly effective as a hedge or ceases to be highly effective, the Company discontinues hedge accounting prospectively. As of December 31, 2019 and 2018, no derivative instruments were designated for hedge accounting. Fair Value Measurements: The Company applies fair value accounting for all financial assets and liabilities and non-financial Warrant Liability: TIP Inc.’s outstanding warrants are recorded as a liability, as the warrants are written options that are not indexed to Common Shares. The warrant liability is recorded in Other current liabilities and accrued expenses i in i Income ( ) non-cash was record ed between the Canadian dollar (the currency in which the warrants are denominated) and United States dollar. Mezzanine Equity: Three pre-Arrangement Required Distributions: Trilogy LLC is required to make quarterly distributions to its members on a pro rata basis in accordance with each member’s ownership interest in amounts sufficient to permit members to pay the tax liabilities resulting from allocations of income tax items from Trilogy LLC. Trilogy LLC was in a net taxable loss position for the years ended December 31, 2019, 2018 and 2017; therefore, no tax distributions were made to its members related to these tax years. Revenue Recognition (effective January 1, 2019): The Company derives its revenues primarily from wireless services, wireline services and equipment sales. Revenues are recognized when control of the services and equipment is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The Company’s revenue recognition policy follows guidance from Revenue from Contracts with Customers (“Topic 606”). The Company determines revenue recognition through the following five-step framework: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in each contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in each contract • Recognition of revenue when, or as, we satisfy a performance obligation Significant Judgments The most significant judgments affecting the amount and timing of revenue from contracts with our customers include the following items: • The assessment of legally enforceable rights and obligations involves judgment and impacts our determination of contractual term, transaction price and related disclosures. • Our products are generally sold with a right of return, which is accounted for as variable consideration when estimating the amount of revenue to recognize. Expected device returns are estimated based on historical experience. • Identifying distinct performance obligations within our service plans may require significant judgment. • For contracts that involve more than one product or service (or multiple performance obligations), determining the standalone selling price for each product or service (or performance obligation) may require significant judgment. • Determining costs that we incur to obtain or fulfill a contract may require significant judgment. • For capitalized contract costs, determining the amortization period as well as assessing the indicators of impairment may require significant judgment. Wireless Services and Related Equipment The Company enters into contracts with consumer and business customers for postpaid wireless services, prepaid wireless services and wireless equipment. Customers may elect to purchase wireless services or equipment separately or together. For wireless service and wireless equipment contracts entered into within a short period of time, we follow the contract combination guidance and assess the contracts as a single arrangement. The Company generates wireless services revenues from providing access to, and usage of, our wireless communications network. Performance obligations included in a typical wireless service contract with a customer include data, voice and text message services. We recognize revenue using an output method, either as the services are used or as time elapses if doing so reflects the pattern by which we satisfy our performance obligation through the transfer of the service to the customer. Wireless monthly service contracts are billed monthly either in advance or arrears based on a fixed fee. Prepaid wireless services sold to customers are recorded as deferred revenue prior to the services being provided to the customer or expiration of the obligation to provide the services . When prepaid service credits are not subject to expiration or have not yet expired, the Company estimates breakage (cash consideration received for prepaid services but never expected to be redeemed by customers) based upon historical usage trends. The Company’s policy is to recognize revenue for estimated breakage in proportion to the pattern s Postpaid monthly wireless services sold to customers are billed monthly in arrears. Postpaid wireless customer contracts are generally either month-to-month ( s an month-to-month We also generate revenues from the sale of wireless equipment to consumer and business subscribers. Performance obligations associated with a typical wireless equipment contract with a customer include handset and accessory equipment. We recognize revenue at a point in time when the device or accessory is delivered to the customer. We offer certain postpaid customers the option to pay for devices and accessories in installments using an EIP. We assessed this payment structure and concluded that there is a financing component related to the EIP. However, we have determined that the financing component for certain direct channel customer classes in the postpaid wireless plans is not significant and therefore we have not recorded interest income over the repayment period for these customer transactions. Wireline Services and Related Equipment We enter into wireline or broadband arrangements with consumer and business subscribers. Wireline service performance obligations include broadband internet services and voice services. We recognize revenue using an output method, as time elapses, because it reflects the pattern by which we satisfy our performance obligation through the transfer of service to the customer. Broadband arrangements are billed monthly. Performance obligations included in a typical wireline broadband contract, as defined by Topic 606, include modem equipment, when sold, and telephone equipment. For these sales, we recognize revenue when the device or accessory is delivered to the customer. During 2018, 2degrees updated the terms and conditions of its own Income ( ) We enter into managed service arrangements with large enterprises and governments. Wireline service performance obligations associated with managed service arrangements include managed network services, internet services and voice services. We recognize revenue using an output method, as time elapses, because it reflects the pattern by which we satisfy our performance obligation through the transfer of s In the context of our our business , used by Wireline customer contracts are generally either month-to-month s that Equipment In addition to selling equipment in connection with wireless and wireline service contracts, as discussed above, we also sell equipment on a standalone basis to dealers and resellers for a fixed fee. The performance obligations include handset and accessory equipment. We recognize revenue when the handset or accessory is delivered to the dealer or reseller as the dealer and reseller is our customer. At the time of delivery, the customer acquires legal title, as physical possession and risks and rewards of ownership have transferred to the customer with no additional conditions to customer acceptance. Interconnection Interconnection revenues are generated when calls from other operators terminate in the Company’s networks and are recognized in the period the termination occurs . Transaction Price and Allocations We have elected to utilize a practical expedient and account for shipping and handling activities that occur after control of the related good transfers as fulfillment activities instead of assessing such activities as performance obligations. We establish provisions for estimated device returns based on historical experience. We assess whether the amounts due under our contracts are probable of collection. For those not probable of collection, we do not recognize revenue until the contract is completed and cash is received. Collectability is re-assessed Consideration payable to a customer is treated as a reduction of the total transaction price, unless the payment is in exchange for a distinct good or service, such as certain commissions paid to dealers. As an accounting policy election, we exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer (for example, sales, use, value added and some excise taxes). We may offer a right of return on our products for a short time period after a sale. These rights are accounted for as variable consideration when determining the transaction price and, accordingly, we recognize revenue based on the estimated amount to which we expect to be entitled net of expected returns. Returns and credits are estimated at contract inception based on historical experience with similar classes of customers and updated at the end of each reporting period as additional information becomes available. Transaction price is allocated to each performance obligation based on its relative standalone selling price (“SSP”). SSP is the price for which we would sell the good or service on a standalone basis without a promotional discount. Judgment is required to determine the SSP for each distinct performance obligation. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions, costs plus a margin and other observable inputs. Warranties and Indemnifications The Company’s equipment is typically provided with an assurance-type warranty that it will perform in accordance with the Company’s on-line Contract Modifications Our s e c See Note 1 – Description of business, basis of presentation and summary of significant accounting policies included in our consolidated financial statements and accompanying notes for the year ended December 31, 2018 for additional discussion regarding the accounting policies that governed revenue recognition prior to January 1, 2019. Advertising Costs: The Company expenses the cost of advertising as incurred. Advertising expense for the years ended December 31, 2019, 2018 and 2017 were $18.6 million, $20.9 million and $19.5 million, respectively. Operating Leases: Our subsidiaries’ cell sites are typically situated on leased property including land, towers and rooftop locations. R s their non-cancelable non-cancelable Defined Contribution Plan: The Company has a defined contribution plan whereby participants may contribute a portion of their eligible pay to the plan through payroll withholdings. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 2 – PROPERTY AND EQUIPMENT As of December 31, 2019 As of December 31, 2018 Land, buildings and improvements $ 9,391 $ 9,187 Wireless communication systems 811,344 785,548 Furniture, equipment, vehicles and software 196,215 176,267 Construction in progress 51,814 44,806 1,068,764 1,015,808 Less: accumulated depreciation (689,903 ) (620,967 ) Property and equipment, net $ 378,861 $ 394,841 Depreciation expense was $92.6 million, $93.1 million and $88.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. Advances to equipment vendors are included in Other assets and totaled $4.0 million and $4.9 million as of December 31, 2019 and 2018, respectively. In February 2019, NuevaTel entered into an agreement ( as amended) up to of $89.5 million. - - - Income ( ) ; non-cancellable tower Income ( ) in The assets and liabilities for the remaining towers were classified as held for sale in the first quarter of 2019 as it is the Company’s intention to complete the sale of these towers within the next 12 months. The net book value of the remaining towers of $0.7 million was included in Property and equipment, net and the associated asset retirement obligation of $0.3 million was included in Other non-current The tower sites have an initial lease term of 10 years with up to three five year renewal terms at NuevaTel’s option. NuevaTel’s initial gross towers its are all increases. As a result of the towers that qualified as a sale-leaseback, NuevaTel incurred $6.0 million in gross rent expense during the year ended December 31, 2019. The initial, second and third closings of the tower sale-leaseback transaction generated a taxable gain which is expected to result in $18.2 million of Bolivian income tax. This gave rise to a deferred tax asset and taxes payable which are included in in Income ( ) for AROs are primarily recorded for the Company’s legal obligations to remediate leased property on which the Company’s network infrastructure and related assets are located. The AROs are recorded in Other non-current Years Ended December 31, 2019 2018 Beginning balance $ 21,689 $ 19,878 Revisions in estimated cash flows 17 296 Additional accruals 1,026 799 Foreign currency translation 119 (799 ) Accretion 1,420 1,623 Disposals (3,300 ) (108 ) Ending balance $ 20,971 $ 21,689 The Company performs reviews of its ARO liability annually, which may result in revisions in estimated cash flows. During the years ended December 31, 2019 and 2018, the revisions in estimated cash flows were not significant. The corresponding assets, net of accumulated depreciation, related to AROs were $6.0 million and $6.9 million as of December 31, 2019 and 2018, respectively. Supplemental Cash Flow Disclosure: The Company acquired $2.8 million, $1.6 million and $1.9 million of property and equipment through current and long-term debt during the years ended December 31, 2019, 2018 and 2017, respectively. The Company also acquires property and equipment through current and long-term construction accounts payable. The net change in current and long-term construction accounts payable resulted in additions or (adjustments) to Purchase of property and equipment in the Consolidated Statements of Cash Flows of $4.8 million, ($1.4) million and ($12.8) million for the years ended December 31, 2019, 2018 and 2017, respectively. |
GOODWILL, LICENSE COSTS AND OTH
GOODWILL, LICENSE COSTS AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, LICENSE COSTS AND OTHER INTANGIBLE ASSETS | NOTE 3 – GOODWILL, LICENSE COSTS AND OTHER INTANGIBLE ASSETS The following table summarizes the changes in the Company’s goodwill balance: December 31, 2019 December 31, 2018 Beginning balance $ 9,014 $ 9,539 Foreign currency adjustment 32 (525 ) Balance at the end of the year $ 9,046 $ 9,014 There are no accumulated goodwill impairments for the years ended December 31, 2019 and 2018. The Company’s license costs and other intangible assets consisted of the following: As of December 31, 2019 As of December 31, 2018 Estimated Gross Accumulated Net Gross Accumulated Net License costs 7 - 20 years $ 218,473 $ (124,105 ) $ 94,368 $ 187,415 $ (109,402 ) $ 78,013 Subscriber relationships 7 years 12,589 (11,165 ) 1,424 12,546 (9,670 ) 2,876 Other 6 - 3,542 (3,542 ) — 3,537 (3,439 ) 98 Total $ 234,604 $ (138,812 ) $ 95,792 $ 203,498 $ (122,511 ) $ 80,987 Amortization expense was $15.8 million, $17.2 million and $17.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. Estimated future amortization expense associated with the net carrying amount of license costs and other intangible assets, based on the exchange rate as of December 31, 2019, is as follows: Years E 2020 $ 12,053 2021 8,732 2022 7,596 2023 7,297 2024 7,297 Thereafter 52,817 Total $ 95,792 New Zealand: On October 29, 2013, Trilogy International Radio Spectrum LLC, a Delaware limited liability company and indirect wholly owned subsidiary of TIP Inc. (“TIRS”), entered into an agreement with the government of New Zealand for the acquisition of a 10 MHz paired license of 700 MHz spectrum (the “700 MHz License”) for $44.0 million New Zealand dollars (“NZD”) ($29.6 million based on the exchange rate at December 31, 2019). The 700 MHz License expires in 2031. TIRS made the management rights to this spectrum available to 2degrees, and 2degrees uses such spectrum in connection with its provision of 4G services. The acquisition of the 700 MHz License was funded through a long-term payable from TIRS to the government of New Zealand. TIRS was obligated to make annual installment payments along with accrued interest. Interest on the unpaid purchase price accrued at the rate of 5.8% per annum. During the year ended December 31, 2019, 2degrees In March 2020, the management rights to this spectrum were transferred to 2degrees. Bolivia: In November 2019, Nuevatel renewed the license for its 30 MHz of 1900 MHz spectrum holdings for $30.2 million. The payment in November 2019 was funded by reinvesting a portion of proceeds from the sale-leaseback of NuevaTel’s towers . The license expires November 2034. |
EIP RECEIVABLES
EIP RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
EIP RECEIVABLES | NOTE 4 – EIP RECEIVABLES In New Zealand, 2degrees offers certain wireless subscribers the option to pay for their handsets in installments over a period of up to 36 months using an EIP. In Bolivia, in 2018, NuevaTel began offering to certain wireless subscribers the option to pay for their handsets in installments over a period of 18 months using an EIP. The following table summarizes the unbilled EIP receivables: As of December 31, 2019 As of December 31, 2018 EIP receivables, gross $ 76,697 $ 50,072 Unamortized imputed discount (4,335 ) (3,784 ) EIP receivables, net of unamortized imputed discount $ 72,362 $ 46,288 Allowance for doubtful accounts (4,852 ) (2,907 ) EIP receivables, net $ 67,510 $ 43,381 As of December 31, 2019 As of December 31, 2018 Classified on the balance sheet as: EIP receivables, net $ 31,750 $ 22,165 Long-term EIP receivables 35,760 21,216 EIP receivables, net $ 67,510 $ 43,381 Of the EIP receivables gross amount of $76.7 million as of December 31, 2019, $4.2 million related to NuevaTel and the remaining related to 2degrees. Of the EIP receivables gross amount of $50.1 million as of December 31, 2018, $2.1 million related to NuevaTel and the remaining related to 2degrees. 2degrees categorizes unbilled EIP receivables as prime or subprime based on subscriber credit profiles. Upon initiation of a subscriber’s installment plan, 2degrees uses a proprietary scoring system that measures the credit quality of EIP receivables using several factors, such as credit bureau information, subscriber credit risk scores and EIP characteristics. 2degrees periodically assesses the proprietary scoring system. Prime subscribers are those with lower risk of delinquency and whose receivables are eligible for sale to a third party. Subprime subscribers are those with higher delinquency risk. Based on subscribers’ credit quality, subscribers may be denied an EIP option or be required to participate in a risk mitigation program which includes paying a deposit and allowing for automatic payments. NuevaTel offers installment plans only to subscribers with a low delinquency risk based on NuevaTel’s credit analysis and the subscriber’s income level. As of the periods presented, all of NuevaTel’s unbilled EIP receivables were categorized as prime. The balances of EIP receivables on a gross basis by credit category as of the periods presented were as follows: As of December 31, 2019 As of December 31, 2018 Prime $ 55,764 $ 33,161 Subprime 20,933 16,911 Total EIP receivables, gross $ 76,697 $ 50,072 The EIP receivables had weighted average imputed discount rates of 7.44% and 6.63% as of December 31, 2019 and December 31, 2018, respectively. The following table shows changes in the aggregate net carrying amount of the unbilled EIP receivables: December 31, 2019 December 31, 2018 Beginning balance of EIP receivables, net $ 43,381 $ 31,989 Additions 99,394 111,028 Billings and payments (50,579 ) (42,671 ) Sales of EIP receivables (23,276 ) (52,308 ) Foreign currency translation 1,086 (2,288 ) Change in allowance for doubtful accounts and imputed discount (2,496 ) (2,369 ) Total EIP receivables, net $ 67,510 $ 43,381 Sales of EIP Receivables: 2degrees has a mobile handset receivables sales agreement (the “EIP Sale Agreement”) with a third party New Zealand financial institution (the “EIP Buyer”). The EIP Sale Agreement provides an arrangement for 2degrees to accelerate realization of receivables from wireless subscribers who purchase mobile phones from 2degrees on installment plans. Under the agreement and on a monthly basis, 2degrees may offer to sell specified receivables to the EIP Buyer and the EIP Buyer may propose a price at which to purchase the receivables. Neither party is obligated to conclude a purchase, except on mutually agreeable terms. The EIP Sale Agreement specifies certain criteria for mobile phone receivables to be eligible for purchase by the EIP Buyer. The Company evaluated the structure and terms of the arrangement and determined 2degrees has no variable interest with the EIP Buyer and thus we are not required to consolidate the entity in our financial statements. The Company determined that the sales of receivables through the arrangement should be treated as sales of financial assets. As such, upon sale, the Company derecognizes the receivables, as well as any related allowance for doubtful accounts, and the loss on sale is recognized in General and administrative expenses. The Company also reverses unamortized imputed discount related to sold receivables included in EIP receivables, net, i 2degrees has continuing involvement with the EIP receivables sold to the EIP Buyer through a servicing agreement. However, the servicing rights do not provide 2degrees with any direct economic benefit, or means of effective control. Further, the EIP Buyer assumes all risks associated with the purchased receivables and has no recourse against 2degrees except in the case of fraud or misrepresentation. The following table summarizes the impact of the sales of the EIP receivables in the years ended December 31, 2019 and 2018: December 31, 2019 December 31, 2018 EIP receivables derecognized $ 23,276 $ 52,308 Cash proceeds (20,313 ) (44,792 ) Reversal of unamortized imputed discount (1,773 ) (3,941 ) Reversal of allowance for doubtful accounts (1,397 ) (2,396 ) Pre-tax $ (207 ) $ 1,179 EIP Receivables Financing: In August 2019, 2degrees entered into an EIP receivables secured borrowing arrangement with the Purchaser and financial institutions that lend capital to the Purchaser. Under the arrangement, 2degrees may sell EIP receivables to the Purchaser at a price reflecting interest rates and fees established in the arrangement. The Company evaluated the structure and terms of the arrangement and determined that the Purchaser is a VIE because it lacks sufficient equity to finance its activities and its equity holder, which is one of the financial lending institutions, lack the attributes of a controlling financial interest. The Company’s interest in the EIP receivables transferred to the Purchaser is a variable interest as 2degrees will in substance absorb all potential losses associated with the transferred EIP receivables. In addition, 2degrees has the control to direct the Purchaser’s most significant activities, which are the collection and management of EIP receivables that have been purchased. As such, 2degrees is the primary beneficiary of the Purchaser and thus the Purchaser is required to be consolidated in our financial statements. 2degrees has continuing involvement with the EIP receivables transferred to the Purchaser through a servicing agreement and maintains effective control by having the right to repurchase the EIP receivables or acquire the shares of the Purchaser at any time. The transfer of receivables through this arrangement does not qualify as a sale of financial assets under GAAP and as such is recorded as a secured borrowing. Upon transfer to the Purchaser, the Company does not derecognize the receivables or related allowance for doubtful accounts and unamortized imputed discount. The outstanding balances of the current and long-term portion of unbilled EIP receivables pledged through this arrangement in EIP receivables, net and Long-term EIP receivables in the Consolidated Balance Sheets was $10.7 million and $11.0 million, respectively, as of December 31, 2019. These EIP receivables serve as collateral for the outstanding financing obligation of $16.4 million related to this secured borrowing arrangement with the Purchaser in Current portion of long-term debt in the Consolidated Balance Sheet as of December 31, 2019. For further information, see Note 7 – Debt. |
OTHER CURRENT LIABILITIES AND A
OTHER CURRENT LIABILITIES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
OTHER CURRENT LIABILITIES AND ACCRUED EXPENSES | NOTE 5 – OTHER CURRENT LIABILITIES AND ACCRUED EXPENSES December 31, 2019 December 31, 2018 Payroll and employee benefits $ 17,538 $ 16,587 Income and withholding taxes 17,169 3,087 Handset purchases 16,746 37,405 Value-added tax and other business taxes 12,452 13,990 Dealer commissions and subsidies 11,484 13,411 Interconnection and roaming charges payable 8,798 13,017 Other 39,425 45,938 Other current liabilities and accrued expenses $ 123,612 $ 143,435 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 6 – FAIR VALUE MEASUREMENTS The accounting guidance for fair value establishes a framework for measuring fair value that uses a three-level valuation hierarchy for disclosure of fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability at the measurement date. The three levels are defined as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; • Level 3 – Unobservable inputs in which little or no market activity exists, requiring an entity to develop its own assumptions that market participants would use to value the asset or liability. The following table presents liabilities measured at fair value on a recurring basis as of December 31, 2019. There were no assets measured at fair value on a recurring basis as of December 31, 2019. Fair Value Measurement as of December 31, 2019 Total Level 1 Level 2 Level 3 Liabilities: Forward exchange contracts $ 336 $ — $ 336 $ — Warrant liability 107 107 — — Interest rate swaps 2,296 — 2,296 — Total liabilities $ 2,739 $ 107 $ 2,632 $ — The following table presents assets and liabilities measured at fair value on a recurring basis as of December 31, 2018: Fair Value Measurement as of December 31, 2018 Total Level 1 Level 2 Level 3 Assets: Short-term investments $ 1,986 $ — $ 1,986 $ — Forward exchange contracts 717 — 717 — Total assets $ 2,703 $ — $ 2,703 $ — Liabilities: Warrant liability $ 99 $ 99 $ — $ — Interest rate swaps 1,829 — 1,829 — Total liabilities $ 1,928 $ 99 $ 1,829 $ — The fair value of the short-term investments is based on historical trading prices, or model-driven valuations which are observable in the market or can be derived principally from or corroborated by observable market data. The fair value of forward exchange contracts is based on the differential between the contract price and the foreign currency exchange rate as of the balance sheet date. The fair value of the warrant liability is based on the public market price of the warrants as of the balance sheet date. The fair value of interest rate swaps is measured using quotes obtained from a financial institution for similar financial instruments. There were no transfers between levels within the fair value hierarchy during the years ended December 31, 2019 and 2018. Cash and cash equivalents, accounts receivable, deposits, accounts payable and accrued expenses are carried at cost, which approximates fair value given their short-term nature. The carrying values of EIP receivables approximate fair value as the receivables are recorded at their present value, net of unamortized imputed discount and allowance for doubtful accounts. The estimated fair value of the Company’s debt, including current maturities, was based on Level 2 inputs, being market quotes or values for similar instruments, such as the interest rates currently available to the Company for the issuance of debt with similar terms and remaining maturities, used to discount the remaining principal payments. The carrying amounts and estimated fair values of our total debt as of December 31, 2019 and 2018 were as follows: As of December 31, 2019 As of December 31, 2018 Carrying amount, excluding unamortized discount and deferred financing costs $ 568,419 $ 516,490 Fair value $ 546,301 $ 503,748 For fiscal year 2019 and 2018, we did not record any material other-than-temporary impairments on financial assets required to be measured at fair value on a nonrecurring basis. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 7 – DEBT The Company’s long-term and other debt as of December 31, 2019 and 2018 consisted of the following: As of December 31, 2019 As of December 31, 2018 Trilogy LLC 2022 Notes $ 350,000 $ 350,000 New Zealand 2021 Senior Facilities Agreement 154,887 137,554 Bolivian Tower Transaction Financing Obligation 16,757 — New Zealand EIP Receivables Financing Obligation 16,372 — Bolivian 2021 Syndicated Loan 10,015 15,022 Bolivian 2023 Bank Loan 7,112 4,000 Bolivian 2022 Bank Loan 5,249 7,000 Other 8,027 2,914 568,419 516,490 Less: deferred financing costs (5,189 ) (6,848 ) Less: unamortized discount (2,064 ) (2,817 ) Total debt 561,166 506,825 Less: current portion of debt (32,428 ) (8,293 ) Total long-term debt $ 528,738 $ 498,532 As of December 31, 2019, the future maturities of long-term and other debt, excluding deferred financing costs and unamortized debt discounts, consisted of the following: Years E 2020 $ 32,428 2021 164,086 2022 355,491 2023 3,452 2024 1,809 Thereafter 11,153 Total $ 568,419 Trilogy LLC 2022 Notes: On May 2, 2017, Trilogy LLC closed a private offering of $350 million aggregate principal amount of its senior secured notes due 2022 (the “Trilogy LLC 2022 Notes”). The Trilogy LLC 2022 Notes were offered to qualified institutional buyers pursuant non-U.S. Trilogy LLC applied the proceeds of this offering together with cash on hand to redeem and discharge all of its then outstanding $450 million senior secured notes due 2019 (the “Trilogy LLC 2019 Notes”) and pay fees and expenses of $9.1 million related to the offering. The refinancing of the Trilogy LLC 2019 Notes was analyzed and accounted for on a lender-by-lender in i Additionally, as a result of the refinancing, $2.4 million of unamortized deferred financing costs and unamortized discount previously outstanding was expensed to Debt modification and extinguishment costs in the Consolidated Statements of Operations during the second quarter of 2017. The Trilogy LLC 2022 Notes bear interest at a rate of 8.875% per annum and were issued at 99.506%. Interest on the Trilogy LLC 2022 Notes is payable semi-annually in arrears on May 1 and November 1. No principal payments are due until maturity on May 1, 2022. Trilogy LLC has the option of redeeming the Trilogy LLC 2022 Notes, in whole or in part, upon not less than 30 days’ and not more than 60 days’ prior notice as follows: • On or after May 1, 2019 but prior to May 1, 2020, at 104.438% • On or after May 1, 2020 but prior to May 1, 2021, at 102.219% • On or after May 1, 2021, at 100% The Trilogy LLC 2022 Notes are subject to an indenture which includes restrictive covenants, including a covenant by Trilogy LLC not to incur additional indebtedness, subject to certain exceptions, such as exceptions that permit NuevaTel and 2degrees to incur certain additional indebtedness. The Trilogy LLC 2022 Notes are guaranteed by certain of Trilogy LLC’s domestic subsidiaries and are secured by a first-priority lien on the equity interests of such guarantors and a pledge of any intercompany indebtedness owed to Trilogy LLC or any such guarantor by 2degrees or any of 2degrees’ subsidiaries and certain third-party indebtedness owed to Trilogy LLC by any minority shareholder in 2degrees. As of the issue date of the Trilogy LLC 2022 Notes and as of December 31, 2019, there was no such indebtedness outstanding. New Zealand 2021 Senior Facilities Agreement: In July 2018, 2degrees completed a bank loan syndication in which ING Bank N.V. acted as the lead arranger and underwriter. This debt facility (the “New Zealand 2021 Senior Facilities Agreement”) has a total available commitment of $250 million NZD ($168.4 million based on the exchange rate at December 31, 2019). Separate facilities are provided under this agreement to (i) repay the then outstanding balance of the prior $200 million NZD senior facilities agreement (the “New Zealand 2019 Senior Facilities Agreement”) and pay fees and expenses associated with the refinancing ($195 million NZD), (ii) provide funds for further investments in 2degrees’ business ($35 million NZD), and (iii) fund 2degrees’ working capital requirements ($20 million NZD). As of December 31, 2019, the $195 million NZD facility ($131.3 million based on the exchange rate at December 31, 2019) and the in The New Zealand 2021 Senior Facilities Agreement also provides for an uncommitted $35 million NZD accordion facility which, after commitments are obtained, can be utilized in the future to fund capital expenditures. The New Zealand 2021 Senior Facilities Agreement matures on July 31, 2021. The outstanding debt drawn under the New Zealand 2021 Senior Facilities Agreement accrues interest quarterly at the New Zealand Bank Bill Reference Rate (“BKBM”) plus a margin ranging from 2.40% to 3.80% (the “Margin”) depending upon 2degrees’ net leverage ratio at that time. The weighted average interest rate on the outstanding balance of all drawn facilities was 3.63% as of December 31, 2019. Additionally, a commitment fee at the rate of 40% of the applicable Margin is payable quarterly on all undrawn and available commitments. As of December 31, 2019, the commitment fee rate was 0.96%. Distributions from 2degrees are subject to free cash flow tests under the New Zealand 2021 Senior Facilities Agreement, calculated at half year and full year intervals. There is no requirement to make prepayments of principal from 2degrees’ free cash flow. The outstanding debt may be prepaid without penalty at any time. Once a year, at least six months apart, 2degrees must reduce the outstanding balance of the working capital facility to zero for a period of not less than five consecutive business days. The New Zealand 2021 Senior Facilities Agreement contains certain financial covenants requiring 2degrees to: • maintain a total interest coverage ratio (as defined in the New Zealand 2021 Senior Facilities Agreement) of not less than 3.0; • maintain a net leverage ratio (as defined in the New Zealand 2021 Senior Facilities Agreement) of not greater than 2.75 from July 1, 2019 to June 30, 2020; and 2.50 thereafter; and • not exceed 110% of the agreed to annual capital expenditures (as defined in the New Zealand 2021 Senior Facilities Agreement) in any financial year. The New Zealand 2021 Senior Facilities Agreement also contains other customary representations, warranties, covenants and events of default and is secured (in favor of an independent security trustee) by substantially all of the assets of 2degrees. The refinancing of the New Zealand 2019 Senior Facilities Agreement was analyzed and accounted for on a lender-by-lender in in Incom e ( ) Additionally, as a result of the refinancing, $0.7 million NZD ($0.5 million based on the average exchange rate in the month of refinancing) of unamortized deferred financing costs previously outstanding was expensed to Debt modification and extinguishment costs in the Consolidated Statements of Operations and Comprehensive Income ( ) In February 2020, the New Zealand 2021 Senior Facilities Agreement was refinanced by an amended and restated facility (see Note 20 – Subsequent Events). Bolivian Tower Transaction Financing Obligation: In February 2019, NuevaTel entered into an agreement (as amended) to sell and leaseback up to 651 network towers. As of December 31, 2019, NuevaTel had completed the sale of 574 towers for total consideration of $89.5 million . The Company recorded proceeds from financing obligations of $18.9 million during the year ended December 31, 2019 for towers that did not meet the criteria for sale-leaseback accounting due to NuevaTel’s continuing involvement in the operation of those towers (the “Bolivian Tower Transaction Financing Obligation”). The outstanding balance of the current and long-term portion of the Bolivian Tower Transaction Financing Obligation million, respectively, as of December 31, 2019. Of the $16.8 million financing obligation outstanding as of December 31, 2019 , $12.1 million is not considered indebtedness under the indenture for the Trilogy LLC 2022 Notes as this amount is treated as debt for accounting purposes (due to our continuing involvement in the management of the towers and certain other factors), but does not constitute indebtedness as defined in the indenture. For further information, see Note 2 – Property and Equipment. New Zealand EIP Receivables Financing Obligation: In August 2019, 2degrees entered into the EIP receivables secured borrowing arrangement that enables 2degrees to sell specified EIP receivables to the Purchaser. The Company evaluated the structure and terms of this arrangement and determined we are required to consolidate the Purchaser in our financial statements. See Note 4 – EIP Receivables for further information. While 2degrees can, in part, determine the amount of cash it will receive from each sale of EIP receivables under the arrangement, the amount of cash available to 2degrees varies based on a number of factors and is limited to a predetermined portion of the total amount of the eligible EIP receivables sold to the Purchaser. Under the arrangement, the Purchaser has access to funding of $35.5 million NZD ($23.9 million based on the exchange rate at December 31, 2019) , million based on the exchange rate at December 31, 2019), and the total amount available of the unused commitment was $11.2 million NZD ($7.5 million based on the exchange rate at December 31, 2019). All proceeds received and repayments under this arrangement are included separately as Proceeds from EIP receivables financing obligation and Payments of debt, including sale-leaseback and EIP receivables financing obligations in financing activities in the Consolidated Statements of Cash Flows. This transaction was analyzed and accounted for in accordance with the applicable accounting guidance for consolidations and transfers and servicing arrangements. Accordingly, the $0.7 million NZD ($0.4 million based on the exchange rate in the month of payment) of incremental fees and expenses directly related to entering into the EIP receivables financing obligation was recorded as a deferred financing cost and is included as a reduction in debt in the Consolidated Balance Sheets. The unamortized balance of the deferred financing costs associated with the EIP receivables financing obligation is amortized ratably to Interest expense over the term of the EIP receivables financing obligation. The Company determined the Purchaser’s obligation to its lenders under the EIP receivables financing arrangement to have similar characteristics as a revolving secured borrowing debt arrangement and has classified the total amount of the outstanding obligation between the Purchaser and its lenders as current in the Consolidated Balance Sheets. The obligation of the Purchaser is presented as a component of debt due to the accounting consolidation of the Purchaser with the Company; however, the obligation does not constitute indebtedness under the indenture for the Trilogy LLC 2022 Notes because the Purchaser is a separate entity none of whose equity is held by the Company or its subsidiaries. The Purchaser pays principal and interest to its lenders on a monthly basis from proceeds that it receives from 2degrees, which collects EIP repayments from the 2degrees subscribers whose EIP receivables were sold to the Purchaser and remits such amounts to the Purchaser. The EIP receivables financing obligation matures August 2022. The outstanding obligation drawn under this arrangement accrues interest monthly at the BKBM plus a margin of 3.50%. The interest rate on the outstanding balance of the drawn facility was approximately 4.84% as of December 31, 2019. Additionally, a line fee of payable by the Purchaser annually on the total available commitment, which the Purchaser likewise pays from proceeds that it receives from 2degrees. The EIP receivables financing obligation contains no financial covenants. The EIP receivables financing obligation contains customary representations, warranties, and events of default for an arrangement of this nature. Bolivian 2021 Syndicated Loan: In April 2016, NuevaTel entered into a $25 million debt facility (the “Bolivian 2021 Syndicated Loan”) with a consortium of Bolivian banks. The net proceeds were used to fully repay the then outstanding balance of a previously outstanding loan agreement and the remaining proceeds were used for capital expenditures. The Bolivian 2021 Syndicated Loan is required to be repaid in quarterly installments which commenced in 2016 and will end in 2021, with 10% of the principal amount to be repaid during each of the first two years of the Bolivian 2021 Syndicated Loan and 26.67% of the principal amount to be repaid during each of the final three years. Interest on the Bolivian 2021 Syndicated Loan currently accrues at a variable rate of 5.5% plus the rate established by the Central Bank in Bolivia (“Tasa de Referencia”) and is payable on a quarterly basis. At December 31, 2019, the interest rate was 8.12%. The outstanding balance of the current and long-term portion of the Bolivian 2021 Syndicated Loan was $6.7 million and $3.3 million, respectively, as of December 31, 2019. The Bolivian 2021 Syndicated Loan agreement contains certain financial covenants requiring NuevaTel to maintain: • an indebtedness ratio (as defined in the Bolivian 2021 Syndicated Loan agreement) of not greater than 2.15; • a debt coverage ratio (as defined in the Bolivian 2021 Syndicated Loan agreement) of not less than 1.25; • a current ratio (as defined in the Bolivian 2021 Syndicated Loan agreement) of not less than 0.65; and • a structural debt ratio (as defined in the Bolivian 2021 Syndicated Loan agreement) of not higher than 3.0. Three switches are specifically pledged as collateral to secure the Bolivian 2021 Syndicated Loan with a general pledge against the remainder of NuevaTel’s assets in an event of default. In February 2020, the outstanding balance of the Bolivian 2021 Syndicated Loan was repaid primarily with proceeds from a new loan (see Note 20 – Subsequent Events). Bolivian 2023 Bank Loan: In December 2018, NuevaTel entered into an $8.0 million debt facility (the “Bolivian 2023 Bank Loan”) with Banco Nacional de Bolivia S.A., a Bolivian bank and a lender in the Bolivian 2021 Syndicated Loan, to fund capital expenditures. NuevaTel drew down the Bolivian 2023 Bank Loan in two $4.0 million advances that occurred in December 2018 and January 2019. The Bolivian 2023 Bank Loan is required to be repaid in quarterly installments which commenced The Bolivian 2023 Bank Loan agreement contains no financial covenants and is unsecured. Bolivian 2022 Bank Loan: In December 2017, NuevaTel entered into a $7.0 million debt facility (the “Bolivian 2022 Bank Loan”) with Banco BISA S.A., a Bolivian bank and a lender in the Bolivian 2021 Syndicated Loan, to fund capital expenditures. The Bolivian 2022 Bank Loan is required to be repaid in quarterly installments which commenced in 2019 through 2022, with 25% of the principal amount to be repaid each year. Interest on the Bolivian 2022 Bank Loan accrues at a fixed rate of 6.0% and is payable quarterly. The outstanding balance of the current and long-term portion of the Bolivian 2022 Bank Loan was $1.8 million and $3.5 million, respectively, as of December 31, 2019. The Bolivian 2022 Bank Loan agreement contains no financial covenants and is unsecured. Interest Cost Incurred: Consolidated interest cost incurred and expensed, prior to capitalization of interest, was $47.1 million, $47.1 million and $60.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. Supplemental Cash Flow Disclosure: Years Ended December 31, 2019 2018 2017 Interest paid, net of capitalized interest $ 42,623 $ 43,650 $ 61,598 Deferred Financing Costs: Deferred financing costs represent incremental direct costs of debt financing and are included in Long-term debt. As of December 31, 2019 and 2018, the balances were $5.2 million and $6.8 million, respectively. These costs are amortized using the effective interest method over the term of the related credit facilities. Amortization of deferred financing costs is included in interest expense and totaled $2.1 million, $2.5 million and $2.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. Covenants: As of December 31, 2019, the Company was in compliance with all of its debt covenants. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 8 – DERIVATIVE FINANCIAL INSTRUMENTS Interest Rate Swaps: 2degrees enters into various interest rate swap agreements to fix its future interest payments under the New Zealand 2021 Senior Facilities Agreement. Under these agreements, 2degrees principally receives a variable amount based on the BKBM and pays a fixed amount based on fixed rates ranging from 1.385% to 3.740%. Settlement in cash occurs quarterly until termination and the variable interest rate is reset on the first day of each calendar quarter. These derivative instruments have not been designated for hedge accounting; thus changes in the fair value are recognized in earnings in the period incurred. The fair value of these contracts, included in Other non-current On April 5, 2011, the Company entered into a domestic interest rate swap originally designated as a cash flow hedge to fix future interest payments on the NZD-denominated de-designation – Accumulated Other Comprehensive Income) was amortized to Other, net over the remaining life of the interest rate swap agreement. Summarized financial information for all of the aforementioned derivative financial instruments is shown below: Years Ended December 31, 2019 2018 2017 Non-cash $ (1,538 ) $ (1,362 ) $ (1,503 ) Loss reclassified from comprehensive loss to Other, net $ — $ — $ (118 ) Net cash settlement $ (1,054 ) $ (1,371 ) $ (1,602 ) Under the terms of the interest rate swaps, we are exposed to credit risk in the event of non-performance non-performance non-performance; Forward Exchange Contracts: At December 31, 2019, 2degrees had short-term forward exchange contracts to sell an aggregate of $22.0 million NZD and buy an aggregate of $14.5 million USD to manage exposure to fluctuations in foreign currency exchange rates. During the year ended December 31, 2019, short-term forward exchange contracts to (i) sell an aggregate of $78.4 million NZD and buy an aggregate of $53.5 million USD, and (ii) sell an aggregate of $2.0 million USD and buy an aggregate of $3.0 million NZD matured. These derivative instruments are not designated for hedge accounting, thus changes in the fair value are recognized in earnings in the period incurred. A foreign exchange (loss) or gain of ($1.0) million, $0.8 million and ($1.1) million was recognized in Other, net during the years ended December 31, 2019, 2018 and 2017, respectively. The estimated settlements under these forward exchange contracts were not material as of December 31, 2019 and 2018. |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY-BASED COMPENSATION | NOTE 9 – EQUITY-BASED COMPENSATION TIP Inc. Restricted Share Units: The Company awards restricted share units (“RSUs” or “Awards”) to certain officers and employees under TIP Inc.’s restricted share unit plan (“RSU Plan”) pursuant to which vesting is subject to meeting certain performance or time-based criteria. RSUs entitle the grantee to receive Common Shares. Time-based RSUs granted to officers and employees vest annually on a straight-line basis generally over a four-year service period, subject to continued service through the applicable vesting dates. Portions of the RSU grants to certain officers consist of Awards that combine time-based elements with performance-based elements, which entitle the recipient to receive a number of Common Shares that varies based on the Company’s performance against revenue or EBITDA performance goals for the fiscal year in which they were granted. The estimated equity-based compensation expense attributable to the performance-based RSUs is updated quarterly. The total number of RSUs granted includes these performance-based Awards and assumes that the performance goals will be achieved. The number of RSUs is updated upon the completion of each applicable fiscal year, when a final determination is made as to whether the performance goals have been achieved. These performance-based RSUs vest on a straight-line basis over a four-year period, subject to continued service through the applicable vesting dates. The maximum number of Common Shares that may be issued under the RSU Plan the aggregate number of issued and outstanding Common Shares and Trilogy LLC Class C Units . The following table provides the outstanding RSUs as of December 31, 2019 and the changes in the period: RSUs Outstanding at December 31, 2018 1,385,255 Granted 1,500,000 Vested (446,728 ) Performance-based RSU adjustment 51,750 Outstanding at December 31, 2019 2,490,277 The Awards had a grant date fair value of $2.4 million, $4.2 million and $9.8 million based on a price per Common Share of $1.57, $4.20 and $6.94 on the date of the grant in 2019, 2018 and 2017, respectively. On January 1, 2019 and June 30, 2019, 171,727 and 275,001 time-based RSU awards vested, respectively , respectively, RSUs. June 30, 2018, 403,118 time-based RSU awards vested and in July 2018, 357,684 shares, net of the monetary equivalent of shares necessary for the payment of related taxes, were issued in settlement of such vested RSUs. As of December 31, 2019, 2,490,277 RSUs were unvested, and unrecognized compensation expense relating to RSUs was approximately $5.1 million, including $1.8 million relating to grants made in 2019. These amounts reflect time-based vesting. The Company expects to recognize the cost for unvested RSUs over a weighted-average period of 2.2 years. Equity-based compensation expense is generally recognized on a straight-line basis over the requisite service period; however, exceptions include awards with an accelerated vesting schedule and updated estimates of achievement against performance goals for performance-based awards. During 2019, 2018 and 2017, the Company recorded $3.2 million, $3.4 million and $1.6 million in compensation expense related to RSUs in General and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income ( ) , respectively . Restricted Class C Units: At December 31, 2016, the Company granted the equivalent of 192,130 Class C Units to an employee of the Company (the “Restricted Class C Units”), of which 96,065 were outstanding and unvested as of December 31, 2019. The value of the Restricted Class C Units was estimated to be $1.5 million based on the fair value on the grant date. The Restricted Class C Units vest over 4 years, with one-fourth During each of 2019, 2018 and 2017, the Company recorded $0.4 million in compensation expense related to the Restricted Class C Units recognized in General and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income ( ) 2degrees Option Plans: 2degrees awards service-based share options (the “Options”) to employees under various Option plans whose vesting is subject to meeting a required service period of up to three years. Approximately 26.6 million Options were outstanding as of December 31, 2019. The Options enable the holders to acquire non-voting During the third quarter of 2019, 2degrees granted a total of 1.3 million Options to employees under a plan whose vesting is subject to meeting a required service period of approximately three years. Equity-based compensation expense is recognized on a straight-line basis over the service period for these grants. The following table summarizes the range of assumptions used in the Black-Scholes model for Options granted in the years ended December 31, 2019 and 2018. There were no Options granted in the year ended December 31, 2017. 2019 2018 Expected volatility 27.5 % 25.0 % Expected term (in years) 4.80 2.75 - 3.94 Risk free interest rate 1.03 % 1.99% - 2.09 % Expected dividend yield 0 % 0 % T During the second quarter of 2018, 2degrees modified approximately 9.8 million of its outstanding Options and extended the expiration date of those Options to May 31, 2021. The Options previously had expiration dates ranging from 2018 to 2020. No other terms of the Options were modified. As a result of this modification, 2degrees recognized approximately $0.7 million of additional equity-based compensation expense, included in General and administrative expenses in accordance with the guidance for modifications of equity awards within Accounting Standards Codification 718 “Stock Compensation”. The following table provides the outstanding Options as of December 31, 2019 and the changes in the period: Options Weighted- Weighted- Aggregate Outstanding at December 31, 2018 26,475,000 $ 1.45 Granted (1) 1,300,000 1.65 Forfeited (1) (250,000 ) 1.90 Redeemed (950,000 ) 1.18 Outstanding at December 31, 2019 26,575,000 1.46 2.5 $ 15,990 Exercisable at December 31, 2019 25,275,000 $ 1.45 2.2 $ 15,675 (1) Exercise price of the options granted and forfeited are denominated in NZD and were translated into USD at the exchange rate on the grant date of the related options. The weighted-average grant date fair value of Options granted during the years 2019 and 2018 were $0.42 and $0.24, respectively. There were no Options granted during the year ended December 31, 2017. The total intrinsic value of Options redeemed or exercised during the years ended December 31, 2019, 2018 and 2017 was $0.5 million, $0.2 million and $3.2 million, respectively. Total equity-based compensation under the 2degrees Option plans, net of forfeitures, of $0.2 million, $2.1 million and $0.8 million was recognized in General and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income ( ) As of December 31, 2019, the Company had total unrecognized compensation costs related to the 2degrees Option plans of $0.5 million. The Company expects to recognize this cost over a period of 2.4 years. |
MEZZANINE EQUITY
MEZZANINE EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
MEZZANINE EQUITY | NOTE 10 – MEZZANINE EQUITY Prior to the Arrangement, three holders of Trilogy LLC’s then Class A Units (“Former Class A Unit Holders”) with a combined unit holding of 73,590 units were as follows: • The Former Class A Unit Holders had the right, prior to the occurr e The Former Class A Unit redemption rights were set forth in the Fifth Amended and Restated LLC Agreement among Trilogy LLC and its members. As of December , , the Company recorded these Former Class A Units in the mezzanine section of the balance sheets and not members’ equity (deficit) because the redemption of these units was not exclusively in Trilogy LLC’s control. Former Class A Units Date when redemption right became exercisable July 30, 2014 48,590 December 24, 2015 25,000 Total redeemable units 73,590 The Former Class A Units included within mezzanine equity were recorded at fair value on the date of issuance and were adjusted to the greater of their carrying amount or redemption value as of December 31, 2016. To give effect to the consummation of the Arrangement on February 7, 2017, the Trilogy LLC Agreement |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
EQUITY | NOTE 11 – EQUITY TIP Inc. Capital Structure TIP Inc.’s authorized share structure consists of two classes of shares, namely Common Shares and one Special Voting Share as follows: TIP Inc. Common Shares: TIP Inc. is authorized to issue an unlimited number of Common Shares with no par value. As of December 31, 2019, TIP Inc. had 58,451,931 Common Shares outstanding, reflecting an increase of 738,095 Common Shares issued during the year ended December 31, 2019 as a result of the issuances of Common Shares in January and July 2019 for vested RSUs, the issuance of Common Shares in May 2019 pursuant to TIP Inc.’s dividend reinvestment plan, and Class C Units being redeemed for Common Shares. Holders of Common Shares are entitled to one vote for each share held on matters submitted to a vote of shareholders. Holders of Common Shares and the Special Voting Share, described below, vote together as a single class, except as provided in the BCBCA, by law or by stock exchange rules. Holders of Common Shares are entitled to receive dividends as and when declared by the board of directors of TIP Inc. In the event of the dissolution, liquidation or winding-up In connection with the Arrangement Agreement, certain holders of Common Shares and Class C Units entered into lock-up “Lock-Up Lock-Up locked-up As of December 31, 2018, 5,748,383 Common Shares were locked-up, Lock-Up lock-up As of December 31, 2019, TIP Inc. holds a 68.9% economic ownership interest in Trilogy LLC through its wholly owned subsidiary, Trilogy International Partners Intermediate Holdings Inc. (“Trilogy Intermediate Holdings”). The 0.2% increase in TIP Inc.’s economic ownership interest in Trilogy LLC during the year ended December 31, 2019 is primarily attributable to the issuance of Common Shares in January and July 2019 for vested RSUs. Forfeitable Founders Shares: At December 31, 2019, the Company had 1,675,336 Common Shares (“Forfeitable Founders Shares”) issued and outstanding that are subject to forfeiture on February 7, 2022, unless the closing price of Common Shares exceeds C$13.00 (as adjusted for stock splits or combinations, stock dividends, reorganizations, or recapitalizations) for any 20 trading days within a 30 trading-day Special Voting Share of TIP Inc.: TIP Inc. has one issued and outstanding Special Voting Share held by a trustee. Holders of Class C Units, as described below, are entitled to exercise voting rights in TIP Inc. through the Special Voting Share on a basis of one vote per Class C Unit held. At such time as there are no Class C Units outstanding, the Special Voting Share shall be redeemed and cancelled for C$1.00 to be paid to the holder thereof. The holder of the Special Voting Share is not entitled to receive dividends. In the event of the dissolution, liquidation or winding-up Warrants: At December 31, 2019, TIP Inc. had 13,402,685 warrants outstanding. Each warrant entitles the holder to purchase one Common Share at an exercise price of C$11.50, subject to normal anti-dilution adjustments. The warrants expire on February 7, 2022. As of February 7, 2017, the date of consummation of the Arrangement, TIP Inc.’s issued and outstanding warrants were reclassified from equity to liability, as the warrants are written options that are not indexed to Common Shares. The fair value of the warrants is based on the number of warrants and the closing quoted public market prices of the warrants. The offsetting impact is reflected in marked-to-market In come ( ) Dividend Paid: In 2019, 2018 and 2017, TIP Inc. paid dividends of C$0.02 per Common Share. The dividend paid in May Concurrently with the issuance of the TIP Inc. dividend, in accordance with the Trilogy LLC Agreement, a as Trilogy LLC Capital Structure The equity interests in Trilogy LLC consist of three classes of units as follows: Class A Units: The Class A Units possess all the voting rights under the Trilogy LLC Agreement, but only Class B Units: TIP Inc. indirectly holds the Class B Units through Trilogy Intermediate Holdings. The Class B Units represent TIP Inc.’s indirect economic interest in Trilogy LLC under the Trilogy LLC Agreement and are required at all times to be equal to the number of outstanding Common Shares. As of December 31, 2019 and December 31, 2018, there were 58,451,931 and 57,713,836 Class B Units outstanding, respectively, reflecting an increase of 738,095 and 3,898,205 Class B Units issued during the year ended December 31, 2019 and December 31, 2018, respectively, as a result of Class C Unit redemptions for Common Shares, the issuance of Common Shares for vested RSUs and issuances pursuant to TIP Inc.’s dividend reinvestment plan. The economic interests of the Class B Units are pro rata with the Class C Units. Class C Units: The Class C Units are held by persons who were members of Trilogy LLC immediately prior to consummation of the Arrangement. The economic interests of the Class C Units are pro rata with the Class B Units. Holders of Class C Units have the right to require Trilogy LLC to redeem any or all Class C Units held by such holder for either Common Shares or a cash amount equal to the fair market value of such Common Shares, the form of consideration to be determined by Trilogy LLC. As of December 31, 2019, redemptions have been settled primarily , partially offset by the issuance of Class C Units in May 2018 pursuant to a dividend declared and paid to holders of Class C Units. one-fourth As of December 31, 2018, 8,677,753 Class C Units were locked-up, Lock-Up lock-up |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | NOTE 12 – REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue: We operate and manage our business in two reportable segments based on geographic region: New Zealand and Bolivia. We disaggregate revenue into categories to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors, including the type of product offering provided, the type of customer and the expected timing of payment for goods and services. See Note The following table presents the disaggregated reported revenue by category: Year Ended December 31, 2019 New Zealand Bolivia Other Total Postpaid wireless service revenues $ 170,371 $ 81,383 $ — $ 251,754 Prepaid wireless service revenues 88,771 102,830 — 191,601 Wireline service revenues 69,317 — — 69,317 Equipment sales 149,103 8,403 — 157,506 Other wireless service and other revenues 8,818 14,188 743 23,749 Total revenues $ 486,380 $ 206,804 $ 743 $ 693,927 Contract Balances: The timing of revenue recognition may differ from the time of billing to our customers. Receivables presented in our Consolidated Balance Sheet represent an unconditional right to consideration. Contract balances represent amounts from an arrangement when either the Company has performed, by providing goods or services to the customer in advance of receiving all or partial consideration for such goods and services from the customer, or the customer has made payment to us in advance of obtaining control of the goods and/or services promised to the customer in the contract. Contract assets primarily relate to our rights to consideration for goods or services provided to the customers but for which we do not have an unconditional right at the reporting date. Under a fixed-term plan, the total contract revenue is allocated between wireless services and equipment revenues . The following table represents changes in the contract assets balance: Contract Assets Balance at January 1, 2019 $ 5,231 Increase resulting from new contracts 3,957 Contract assets reclassified to a receivable or collected in cash (6,145 ) Foreign currency translation 1 Balance at December 31, 2019 $ 3,044 Deferred revenue arises when we bill our customers and receive consideration in advance of providing the goods or services promised in the contract. For prepaid wireless services and wireline services, we typically receive consideration in advance of providing the services, which is the most significant component of the contract liability deferred revenue balance. Deferred revenue is recognized as revenue when services are provided to the customer. The following table represents changes in the contract liabilities deferred revenue balance: Deferred Revenue Balance at January 1, 2019 $ 18,966 Net increase in deferred revenue 19,489 Revenue recognized related to the balance existing at January 1, 2019 (18,100 ) Foreign currency translation (118 ) Balance at December 31, 2019 $ 20,237 Remaining Performance Obligations: As of December 31, 2019, the aggregate amount of transaction price allocated to remaining performance obligations was approximately $12.1 million, which is primarily composed of expected revenues allocated to service performance obligations related to our fixed-term wireless plans. We expect to recognize approximately 91% of the revenue related to these remaining performance obligations over the next 12 months and the remainder thereafter. We have elected to apply the practical expedient option available under Topic 606 that permits us to exclude the expected revenues arising from unsatisfied performance obligations related to contracts that have an original expected duration of one year or less. Contract Costs: Topic 606 requires the recognition of an asset for incremental costs to obtain a customer contract. These costs are then amortized to expense over the respective periods of expected benefit. We recognize an asset for direct and Contract costs balances are presented in our Consolidated Balance Sheet as Prepaid expenses and other current assets and Other assets. Capitalized contract costs are assessed for impairment on a periodic basis. There were no impairment losses recognized on capitalized contract costs for the year ended December 31, 2019. The following table represents changes in the contract costs balance: Contract Costs Balance at January 1, 2019 $ 3,050 Incremental costs of obtaining and contract fulfilment costs 19,519 Amortization included in operating costs (6,930 ) Foreign currency translation 159 Balance at December 31, 2019 $ 15,798 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 13 – EARNINGS PER SHARE Basic and diluted earnings per share are computed using the two-class . For the years ended December 31, 2019, 2018 and for the period from February 7, 2017 to December 31, 2017, the warrants were out of the money and no adjustment was made to exclude the gain recognized by TIP Inc. for the change in fair value of the warrant liability. There was an insignificant impact of the change in the warrant liability for the year ended December 31, 2019, and a gain of $6.4 million and $9.1 million resulted from the change in fair value of the warrant liability for the year ended December 31, 2018 and period from February 7, 2017 through December 31, 2017, respectively. For the year ended December 31, 2019, the Class C units were anti-dilutive. For the year ended December 31, 2018 and period from February 7, 2017 through December 31, 2017, the gains resulting from the change in fair value of the warrant liability reduced the net loss attributable to TIP Inc. along with the resulting basic loss per share and, therefore, resulted in the Class C Units being dilutive when included as if redeemed for those periods. The components of basic and diluted earnings per share were as follows: Years Ended December 31, Period February 7, 2019 2018 (in thousands, except per share amounts) Basic EPS: Numerator: Net income (loss) attributable to TIP Inc. $ 2,878 $ (20,205 ) $ (15,337 ) Denominator: Basic weighted average Common Shares outstanding 56,629,405 53,678,914 44,692,369 Net income (loss) per share: Basic $ 0.05 $ (0.38 ) $ (0.34 ) Diluted EPS: Numerator: Net income (loss) attributable to TIP Inc. $ 2,878 $ (20,205 ) $ (15,337 ) Add back: Net loss attributable to Class C Units – Redeemable for Common Shares — (11,996 ) (18,444 ) Net income (loss) attributable to TIP Inc. and Class C Units $ 2,878 $ (32,201 ) $ (33,781 ) Denominator: Basic weighted average Common Shares outstanding 56,629,405 53,678,914 44,692,369 Effect of dilutive securities: Unvested RSUs 157,940 — — Weighted average Class C Units – Redeemable for Common Shares — 28,514,587 37,058,289 Diluted weighted average Common Shares outstanding 56,787,345 82,193,501 81,750,658 Net income (loss) per share: Diluted $ 0.05 $ (0.39 ) $ (0.41 ) The following table indicates the weighted average dilutive effect of Common Shares that may be issued in the future. These Common Shares were not included in the computation of diluted earnings per share for the year ended December 31, 2019 and 2018, and the period from February 7, 2017 through December 31, 2017, because the effect was either anti-dilutive or the conditions for vesting were not met: Years Ended December 31, Period February 7, 2019 2018 Class C Units 26,439,817 — — Warrants 13,402,685 13,402,685 13,402,685 Forfeitable Founders shares 1,675,336 1,675,336 1,675,336 Unvested RSUs 1,074,144 1,674,684 704,360 Unvested Class C Units 96,065 144,098 192,130 Common Shares excluded from calculation of diluted net income (loss) per share 42,688,047 16,896,803 15,974,511 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | NOTE 14 – ACCUMULATED OTHER COMPREHENSIVE INCOME A summary of the components of Accumulated other comprehensive income is presented below: Total Cumulative Unrealized December 31, 2017 $ 6,059 $ 6,058 $ 1 Other comprehensive loss (2,629 ) (2,629 ) — Unrealized net loss related to short-term investments (2 ) — (2 ) Net current period other comprehensive loss (2,631 ) (2,629 ) (2 ) December 31, 2018 $ 3,428 $ 3,429 $ (1 ) Other comprehensive income 986 986 — Unrealized net gain related to short-term investments 1 — 1 Net current period other comprehensive income 987 986 1 December 31, 2019 $ 4,415 $ 4,415 $ — |
NONCONTROLLING INTERESTS IN CON
NONCONTROLLING INTERESTS IN CONSOLIDATED SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS IN CONSOLIDATED SUBSIDIARIES | NOTE 15 – NONCONTROLLING INTERESTS IN CONSOLIDATED SUBSIDIARIES Noncontrolling interests represent the equity ownership interests in consolidated subsidiaries not owned by the Company. Noncontrolling interests are adjusted for contributions, distributions, and income and loss attributable to the noncontrolling interest partners of the consolidated entities. Income and losses are allocated to the noncontrolling interests based on the respective governing documents. There are noncontrolling interests in certain of the Company’s consolidated subsidiaries. The noncontrolling interests are summarized as follows: As of December 31, 2019 As of December 31, 2018 2degrees $ 39,223 $ 20,426 NuevaTel 45,122 51,165 Trilogy International Partners LLC (28,159 ) (32,874 ) Salamanca Solutions International LLC (698 ) (738 ) Noncontrolling interests $ 55,488 $ 37,979 As a result of the consummation of the Arrangement, there are noncontrolling interests in Trilogy LLC presented in the table above for the period beginning February 7, 2017. See Note 1 – Description of Business, Basis of Presentation and Summary of Significant Accounting Policies. Supplemental Cash Flow Disclosure: During the year s and 2018 and $6.8 million, respectively years ended December 31, 2019 and 2018. There were no dividends declared by NuevaTel during the 7 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 – COMMITMENTS AND CONTINGENCIES Leases: Estimated future minimum lease payments, utilizing current exchange rates at December 31, 2019, over the estimated lease terms are summarized below: Years Ending December 31, 2020 $ 25,148 2021 24,245 2022 21,861 2023 20,796 2024 20,126 Thereafter 88,361 Total $ 200,537 Aggregate rental expense for all operating leases was $25.6 million, $22.1 million and $21.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. Commitments: New Zealand In November 2019, 2degrees entered into a Radio Access Network (“RAN”) sharing agreement with a New Zealand telecommunications provider (the “RAN Sharing Partner”) under which the RAN Sharing Partner will supply 2degrees with managed capacity service for a specified number of network sites under an indefeasible right to use arrangement. This arrangement will allow 2degrees to utilize the third party’s network equipment to serve 2degrees customers on 2degrees’ own spectrum and will replace certain roaming arrangements with the RAN Sharing Partner. The agreement expires in January 2030 and specifies a series of payments over the term of the agreement. The payment amounts vary with more significant amounts due in the earlier years. In March 2020, 2degrees paid an initial amount due under this agreement upon completion of certain proof of concept activities. Upon the completion and availability of a specified number of sites, additional payments will be due and will begin a series of ongoing quarterly payments to be made over the remainder of the agreement term. 2degrees will pay the ongoing quarterly payments commencing in 2022 through 2024. On or prior to August 1, 2023, 2degrees may terminate this agreement effective on February 1, 2025. 2degrees has an outstanding commitment with Huawei through 2022 for technical support and spare parts maintenance, software upgrades, products, professional services, other equipment and services. The significant majority of the commitment relates to existing network technology and includes amounts that will be reflected within both capital expenditures and operating expenses. A portion of this total commitment is based upon cell sites on air as of December 31, 2019 and will be updated quarterly to reflect new site additions. This portion of the commitment also assumes that in 2020, upon termination of the related agreement, 2degrees will purchase the existing software license from Huawei. In August 2017, the New Zealand government signed an agreement with a New Zealand wireless carriers’ joint venture group, consisting of 2degrees, Vodafone, and Spark New Zealand Limited, to fund a portion of the country’s rural broadband infrastructure project (the “RBI2 Agreement”). 2degrees’ estimated outstanding obligation for investments under the RBI2 Agreement does not include potential operating expenses or capital expenditure upgrades associated with the RBI2 Agreement. In October 2016, 2degrees signed a three-year purchase agreement, effective as of August 1, 2016, with a handset manufacturer. 2degrees has extended this agreement through April 30, 2020. 2degrees has submitted purchase orders under this agreement which 2degrees expects to be fulfilled during 2020. In November 2011, 2degrees accepted an offer from the New Zealand Ministry of Economic Development (now part of the Ministry of Business, Innovation and Employment, the “MBIE”) to renew its 800/900 MHz spectrum licenses effective November 25, 2022 through November 28, 2031. The price will be calculated at the time payment is due in 2022 based on changes to the Consumer Price Index and other variables. In September 2019, the MBIE offered to renew spectrum licenses used by 2degrees in the 1800 MHz and 2100 MHz spectrum bands. The renewal offers apply to 2x20 MHz in the 1800 MHz band and 2x15 MHz in the 2100 MHz band. The cost of the renewals may be paid in six annual installments beginning from January 2021. Preliminary acceptance of the offers was delivered in November 2019. No legal obligation will arise in connection with the renewal of the spectrum licenses until the New Zealand government issues final terms, including the interest rate, security terms and specific frequency allocations. These terms are expected to be available in August 2020, at which time 2degrees will have the right to advise final acceptance of the government’s offers. Although the purchase amounts are not legally committed until final terms are accepted, we have included the expected amounts of the installment payments (inclusive of estimated interest) in the total purchase commitments table below as we expect these payments will be made. As of December 31, 2019, 2degrees had other purchase commitments through 2024 with various vendors to acquire hardware and software related to ongoing network and Information Technology (“IT”) projects, as well as for IT support services, IT development, retail store fit-outs, Total purchase commitments for each of the next five years for New Zealand as of December 31, 2019, based on exchange rates as of that date, are as follows: Years Ending December 31, 2020 $ 47,439 2021 27,630 2022 28,737 2023 11,106 2024 11,106 Bolivia In December 2016, NuevaTel signed an agreement with Telefónica Celular de Bolivia S.A. (“Telecel”) pursuant to which Telecel provides NuevaTel an Indefeasible Right to Use of its existing and future capacity to transport national telecommunications data. This purchase commitment expires in 2031 . NuevaTel also has purchase commitments through 2027 with various vendors primarily to acquire telecommunications equipment, capacity to transport telecommunications data, support services and advertising costs which are not significant individually. Total purchase commitments for each of the next five years for Bolivia as of December 31, 2019 are as follows: Years Ending December 31, 2020 $ 27,123 2021 5,275 2022 2,110 2023 2,110 2024 2,110 The Bolivian regulatory authority, the Autoridad de Regulación y Fiscalización de Telecomunicaciones y Transportes of Bolivia (“ATT”) has conditioned the 4G license awarded to NuevaTel on meeting service deployment standards, requiring that the availability of 4G service expand over a 96-month 339 municipalities of Bolivia by May 2022. NuevaTel expects to meet this requirement. Contingencies: General The financial statements reflect certain assumptions based on telecommunications laws, regulations and customary practices currently in effect in the countries in which the Company’s subsidiaries operate. These laws and regulations can have a significant influence on the Company’s results of operations and are subject to change by the responsible governmental agencies. The Company assesses the impact of significant changes in laws, regulations and political stability on a regular basis and updates the assumptions and estimates used to prepare its financial statements when deemed necessary. However, the Company cannot predict what future laws and regulations might be passed or what other events might occur that could have a material effect on its investments or results of operations. In particular, Bolivia has experienced, or may experience, political and social instability. In addition to issues specifically discussed elsewhere in this Note to our Consolidated Financial Statements, the Company is a party to various lawsuits, regulatory proceedings and other matters arising in the ordinary course of business. Management believes that although the outcomes of these proceedings are uncertain, any liability ultimately arising from these actions should not have a material adverse impact on the Company’s financial condition, results of operations or cash flows. The Company has accrued for any material contingencies where the Company’s management believes the loss is probable and estimable. Bolivian Regulatory Matters Under the Bolivian Telecommunications Law, carriers must negotiate new licenses (to replace their existing concessions) with the Bolivian government. In February 2019, NuevaTel signed a new license agreement. The agreement governs (but does not replace) NuevaTel’s existing spectrum grants and its concessions to provide mobile voice services and data services. NuevaTel’s 1900 MHz spectrum grant and its mobile and data services concessions expired on November 25, 2019. NuevaTel paid $30.2 million for its 1900 MHz spectrum renewal in the fourth quarter of 2019. The payment was funded by reinvesting a portion of proceeds from the sale-leaseback of NuevaTel’s towers. The renewed 1900 MHz spectrum will expire in the fourth quarter of 2034. NuevaTel’s network has experienced several network outages affecting voice and 3G and 4G data services both locally and nationally over the past several years, and outages continue to occur from time to time due to a variety of causes; some of these outages relate to equipment failures or malfunctions within NuevaTel’s network and some outages are the result of failures or service interruptions on communications facilities (e.g. fiber optics lines) leased by NuevaTel from other carriers. As to many of these outages, the ATT is investigating if the outages were unforeseen or were events that could have been avoided by NuevaTel, and, if avoidable, whether penalties should be imposed. The ATT investigated an August 2015 outage (in the town of San José de Chiquitos) and imposed a fine of $4.5 million against NuevaTel in 2016. NuevaTel appealed the ATT’s decision on the basis that the interruption was attributable to a force majeure event. The fine was rescinded by the ATT and then reimposed on different grounds. In June 2017, the Ministry of Public Works, Services and Housing (the “Ministry”) vacated the fine, but allowed the ATT to reinstate the penalty provided it could establish that NuevaTel was responsible for the service interruption. The ATT reinstated the penalty, although it noted in its findings that the outage was a force majeure event, and NuevaTel filed another appeal to the Ministry. In September 2018, the Ministry notified NuevaTel that it rejected the appeal and that NuevaTel would be required to pay the $4.5 million fine plus interest. NuevaTel accrued $4.5 million in the third quarter of 2018 in Other current liabilities and accrued expenses as presented in the Consolidated Balance Sheets as of December 31, 2019 and 2018. The expense was recorded in Other, Net in the Consolidated Statement of Operations and Comprehensive Income (Loss). NuevaTel continues to contest the matter vigorously and has appealed the Ministry’s decision to the Supreme Tribunal of Justice. On May 22, 2019, the ATT ordered NuevaTel to pay the fine it had imposed. NuevaTel has responded that it is not obligated to pay until the Supreme Tribunal rules on its appeal. The ATT has initiated a separate court proceeding against NuevaTel to collect the fine. Should the ATT prevail in this proceeding, NuevaTel expects that it will be required to deposit the fine amount in a restricted account pending resolution of NuevaTel’s appeal before the Supreme Tribunal. In April 2013, the ATT notified NuevaTel that it proposed to assess a fine of $2.2 million against NuevaTel for delays in making repairs to public telephone equipment in several Bolivian cities in 2010. NuevaTel accrued the full amount of the fine plus interest of approximately $0.1 million but also filed an appeal with the Supreme Tribunal of Justice in regard to the manner in which the fine was calculated. In December 2017, the court rescinded the fine on procedural grounds but permitted the ATT to impose a new fine. If the ATT does so, NuevaTel will have the right to discharge the fine by paying half of the stated amount of the penalty on condition that NuevaTel foregoes any right of appeal. NuevaTel has not decided what action it may take in such event. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 17 – INCOME TAXES For financial reporting purposes, loss before income taxes includes the following components: Years Ended December 31, 2019 2018 2017 Canada $ (578 ) $ 5,934 $ 8,602 United States (42,578 ) (42,461 ) (65,071 ) Foreign 26,382 9,686 34,592 Loss before income taxes $ (16,774 ) $ (26,841 ) $ (21,877 ) Income tax ( benefit ) Years Ended December 31, Current: Canada $ — $ — $ — United States 125 350 — Foreign 23,734 7,148 7,652 23,859 7,498 7,652 Deferred: Canada $ — $ — $ — United States — — — Foreign (64,655 ) (2,609 ) 529 (64,655 ) (2,609 ) 529 Total income tax ( benefit $ (40,796 ) $ 4,889 $ 8,181 TIP Inc.’s portion of taxable income or loss is subject to corporate taxation in both the U.S. and Canada as a result of the structure of the Arrangement. The federal statutory rates applicable for the U.S. and Canada for the year ended December 31, 201 9 9 The reconciliation between income tax expense (benefit) from continuing operations and the income tax expense (benefit) that results from applying the Canadian federal statutory rate of 25% to consolidated pre-tax earnings is as follows: Years Ended December 31, 2019 2018 2017 Income tax benefit at Canadian federal rate $ (4,194 ) $ (6,710 ) $ (5,469 ) Earnings attributable to non-tax 3,502 3,815 8,597 Foreign rate differential 1,878 714 (1,996 ) Change in valuation allowance (45,037 ) 19,398 (21,586 ) Effect of intercompany asset transfer — (23,484 ) 25,987 Impact of tax law changes — 7,237 5,068 Foreign withholding tax incurred 1,316 2,259 692 Withholding taxes on unrepatriated foreign earnings (2,281 ) (1,212 ) 2,215 Inflation adjustment (1,824 ) (2,235 ) (1,333 ) Permanent adjustments 3,322 503 (3,001 ) Foreign exchange translation 30 2,668 (1,464 ) Other – net 2,492 1,936 471 Total $ (40,796 ) $ 4,889 $ 8,181 The components of deferred tax assets and liabilities are as follows: December 31, 2019 December 31, 2018 Intangible assets $ 9,457 $ 10,100 Fixed assets 18,503 20,445 Bad debt allowance 5,332 4,471 NOL and foreign tax credit carryforwards 23,920 24,759 Accrued liabilities 9,106 8,317 Inventory valuation 716 763 Excess business interest expense 9,489 4,625 Equity based compensation 2,678 2,885 Transaction costs 777 1,364 Tower sale deferred gain 13,758 — Tower sale financing obligation 4,198 — Other 6,293 4,211 Subtotal $ 104,227 $ 81,940 Less: valuation allowance (25,348 ) (70,279 ) Total net deferred tax assets $ 78,879 $ 11,661 Fixed assets $ (963 ) $ (915 ) NRS contract asset (4,914 ) — Withholding taxes on unrepatriated foreign earnings (9,523 ) (11,439 ) Total deferred tax liabilities $ (15,400 ) $ (12,354 ) Net deferred tax asset (liability) $ 63,479 $ (693 ) Classified on the balance sheet as: Deferred tax asset $ 73,216 $ 10,746 Deferred tax liability $ (9,737 ) $ (11,439 ) $ 63,479 $ (693 ) As of December 31, 2019, the Company had NOL carryforwards related to our operations in New Zealand of approximately $36 million. Such tax losses carry forward indefinitely provided that 2degrees shareholder continuity requirements are met. The Arrangement completed on February 7, 2017 resulted in a recapitalization of the Trilogy LLC’s members’ units. Additionally, as discussed in Note 11 – Equity, certain Trilogy LLC Class C Units were redeemed for Common Shares through December 31, 2019 and additional redemptions occurred subsequent to the year end and through the date of issuance of these financial statements. The impact of the redemptions through December 31, 2019 did not result in loss of NOL carryforwards. The redemptions subsequent to year end are not expected to materially impact continuity for the remaining NOL carryforwards. Common Shares held by historical equity holders in Trilogy LLC and 2degrees will continue to be assessed in connection with shareholder continuity requirements. Additionally, as of December 31, 2019, TIP Inc. (and its wholly owned U.S. subsidiary) had NOL carryforwards of $45 million and $10 million in the U.S. and Canada, respectively. The U.S. NOL carryforwards generated prior to December 31, 2017 carry forward for a period of 20 years while the U.S. NOL carryforwards generated after December 31, 2018 carry forward indefinitely. The Canadian NOL carries forward for a period of 20 years. The future utilization of all loss carryforwards are contingent upon certain shareholder continuity and other requirements being met. As of December 31, 2019, these NOL carryforwards continue to be retained. Management assesses the need for a valuation allowance in each tax paying component or jurisdiction based upon the available positive and negative evidence to estimate whether sufficient taxable income will exist to permit realization of the deferred tax assets. On the basis of this evaluation, as of December 31, 2019 our valuation allowance was $25 million. The change from December 31, 2018 to December 31, 2019 primarily related to a $45 million reduction in the valuation allowance against the Company’s net deferred tax assets in New Zealand as these deferred tax assets are expected to be realizable. This benefit was recorded within Income tax benefit (expense) in our Consolidated Statements of Operations and Comprehensive Income (Loss). The remaining valuation allowance relates to deferred tax assets for TIP Inc. and its U.S. corporate subsidiaries. The amount of the Company’s deferred tax assets considered realizable could be adjusted if estimates of future taxable income during the carryforward periods are reduced or increased. We are subject to taxation in Bolivia, New Zealand, the United States and Canada. As of December 31, 2019, the following are the open tax years by jurisdiction: New Zealand 2014 – 2019 Bolivia 2014 – 2019 United States 2016 – 2019 Canada 2015 – 2019 Supplemental Cash Flow Disclosure: Years Ended December 31, 2019 2018 2017 Income and withholding tax paid $ 11,874 $ 15,217 $ 11,628 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 18 – SEGMENT INFORMATION We determine our reportable segments based on the manner in which our Chief Executive Officer, considered to be the chief operating decision maker (“CODM”), regularly reviews our operations and performance. Segment information is prepared on the same basis that our CODM manages the segments, evaluates financial results, allocates resources, and makes key operating decisions. We operate two reportable segments identified by their geographic regions: • New Zealand – 2degrees offers wireless voice and data communication services through both prepaid and postpaid payment plans. 2degrees also provides fixed broadband communications services to business and residential customers in New Zealand. • Bolivia – NuevaTel offers voice and data services through both prepaid cards and postpaid payment plans to its mobile customers in Bolivia. In addition, NuevaTel offers fixed LTE wireless services and public telephony services. Our CODM evaluates and measures segment performance primarily based on revenues and Adjusted EBITDA. Adjusted EBITDA represents income (loss) before income taxes excluding amounts for (1) interest expense; (2) depreciation, amortization and accretion; (3) equity-based compensation (recorded as a component of General and administrative expenses); (4) (gain) loss on disposal of assets and sale-leaseback transaction; and (5) all other non-operating non-operational Revenue is attributed to regions based on where services are provided. Segment results do not include any intercompany revenues. The identifiable assets by segment disclosed in this note are those assets specifically identifiable within each segment and include cash and cash equivalents, net property and equipment, goodwill, and other intangible assets. Assets and capital expenditures not identified by reportable segment below are associated with corporate assets. Corporate assets consist primarily of cash and cash equivalents available for general corporate purposes, investments and assets of the corporate headquarters. Expense and income items excluded from segment earnings are managed at the corporate level. The accounting policies of the reportable segments are the same as those described in Note 1 – Description of Business, Basis of Presentation and Summary of Significant Accounting Policies. No customer accounted for more than 10% of the Company’s consolidated total revenues in 2019. Historically, the Company’s largest customer was a New Zealand retail reseller of wireless devices and accessories and represented approximately 12% of the Company’s consolidated total revenues in 2018 and 11% of the Company’s consolidated total revenues in 2017. The revenue from this customer is primarily from equipment sales of handsets. No other customer accounted for more than 10% of the Company’s consolidated total revenues for the years ended December 31, 2018 and 2017. The table below presents financial information for our reportable segments and reconciles total segment Adjusted EBITDA to Loss before income taxes: Year ended December 31, 2019 2018 2017 Revenues New Zealand $ 486,380 $ 556,410 $ 520,042 Bolivia 206,804 240,941 258,438 Unallocated Corporate & Eliminations 743 824 420 Total revenues $ 693,927 $ 798,175 $ 778,900 Adjusted EBITDA New Zealand $ 106,308 $ 90,396 $ 85,307 Bolivia 42,475 65,531 76,522 Equity-based compensation (4,041 ) (5,856 ) (2,853 ) Acquisition and other nonrecurring costs (6,946 ) (4,002 ) (5,765 ) Depreciation, amortization and accretion (109,845 ) (111,889 ) (106,909 ) Gain (loss) on disposal of assets and sale-leaseback transaction 11,169 (1,346 ) (682 ) Interest expense (45,988 ) (45,913 ) (59,754 ) Change in fair value of warrant liability 1 6,361 9,053 Debt modification and extinguishment costs — (4,192 ) (6,689 ) Other, net 555 (4,682 ) 1,329 Unallocated Corporate & Eliminations (10,462 ) (11,249 ) (11,436 ) Loss before income taxes $ (16,774 ) $ (26,841 ) $ (21,877 ) Depreciation, amortization and accretion New Zealand $ 64,197 $ 66,160 $ 60,805 Bolivia 44,944 45,107 45,925 Unallocated Corporate & Eliminations 704 622 179 Total depreciation, amortization and accretion $ 109,845 $ 111,889 $ 106,909 Capital expenditures New Zealand $ 59,555 $ 53,085 $ 53,904 Bolivia 25,636 29,659 37,215 Unallocated Corporate & Eliminations 21 180 1,233 Total capital expenditures $ 85,212 $ 82,924 $ 92,352 Total assets New Zealand $ 496,270 $ 440,385 Bolivia 331,538 289,402 Unallocated Corporate & Eliminations 10,819 9,241 Total assets $ 838,627 $ 739,028 The table below presents total revenues by product or service type for the years ended December 31, 2019, 2018 and 2017: New Zealand Bolivia Unallocated Total Year ended December 31, 2019 Wireless service revenues $ 261,218 $ 195,974 $ — $ 457,192 Wireline service revenues 69,317 — — 69,317 Equipment sales 149,103 8,403 — 157,506 Non-subscriber 6,742 2,427 743 9,912 Total revenues $ 486,380 $ 206,804 $ 743 $ 693,927 Year ended December 31, 2018 Wireless service revenues $ 265,947 $ 234,380 $ — $ 500,327 Wireline service revenues 61,804 — — 61,804 Equipment sales 217,015 4,595 — 221,610 Non-subscriber 11,644 1,966 824 14,434 Total revenues $ 556,410 $ 240,941 $ 824 $ 798,175 Year ended December 31, 2017 Wireless service revenues $ 274,168 $ 252,031 $ — $ 526,199 Wireline service revenues 57,131 — — 57,131 Equipment sales 175,096 3,740 — 178,836 Non-subscriber 13,647 2,667 420 16,734 Total revenues $ 520,042 $ 258,438 $ 420 $ 778,900 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 19 – RELATED PARTY TRANSACTIONS In August 2019, 2degrees entered into an EIP receivables secured borrowing arrangement with the Purchaser and financial institutions that lend capital to the Purchaser. The Company evaluated the structure and terms of the arrangement and determined that the Purchaser is a VIE because it lacks sufficient equity to finance its activities and its equity holder, which is one of the financial lending institutions, lack the attributes of a controlling financial interest. The Company determined 2degrees is the primary beneficiary of the Purchaser and thus the Purchaser is required to be consolidated in our financial statements. For further information, see Note 4 – EIP Receivables. On July 31, 2013, Trilogy LLC entered into an agreement (the “Agreement”) with Salamanca Holding Company (“SHC”), a Delaware limited liability company, and three former Trilogy LLC executives. Pursuant to the Agreement, Trilogy LLC transferred to SHC 80% of Trilogy LLC’s interest in its wholly owned subsidiary, Salamanca Solutions International LLC (“SSI”), in exchange for 2,140 Class C Units held by the three individuals. Pursuant to a subsequent agreement among the owners of SHC, one of these individuals transferred his ownership interest to the other two owners of SHC. Since 2008, SSI has licensed billing and customer relations management intellectual property that it owned, known as Omega (the “Omega IP”), and associated software support and development services, to the Company’s subsidiary in Bolivia, NuevaTel. NuevaTel paid maintenance fees to SSI that covered most of the operating costs of SSI. The Company believes that SHC, as the majority owner of SSI, intends to concentrate on locating new sources of revenue from third party customers for the software services that SSI can provide. Trilogy LLC, through a wholly owned subsidiary, holds an option to acquire the Omega IP at nominal cost if SSI ceases business operations in the future. Trilogy LLC has the right to appoint one of four members of the SSI board of directors and has certain veto rights over significant SSI business decisions. The impact on our consolidated results related to SSI was an increase to net income by $49 thousand and an increase to net loss by $150 thousand and $382 thousand for the years ended December 31, 2019, 2018 and 2017, respectively. The Company and its officers have used, and may continue to use, jet airplanes owned by certain of the Trilogy LLC founders. The Company reimburses the Trilogy LLC founders at fair market value and on terms no less favorable to the Company than the Company believes it could obtain in comparable transactions with a third party for the use of these airplanes. For the years ended December 31, 2019, 2018 and 2017, the Company reimbursed the Trilogy LLC founders approximately $49 thousand, $23 thousand and $197 thousand, respectively, for the use of their airplanes. Trilogy LLC has a non-interest bearing loan outstanding to New Island Cellular, LLC (“New Island”), an entity with which one of Trilogy LLC’s members and former managers is affiliated, in an aggregate principal amount of approximately $6.2 million (the “New Island Loan”), the proceeds of which were used to cover additional taxes owed by New Island as a result of Trilogy LLC’s 2006 election to treat its former subsidiary, ComCEL, as a U.S. partnership for tax purposes. The New Island Loan is secured by New Island’s Trilogy LLC Units but is otherwise non-recourse to New Island. The New Island Loan will be repaid when and if (i) distributions (other than tax distributions) are made to the members of Trilogy LLC, with the amounts of any such distributions to New Island being allocated first to the payment of the outstanding amounts of the New Island Loan, or (ii) New Island transfers its Units to any person or entity (other than an affiliate that assumes the New Island Loan). The outstanding receivable balance is offset against additional paid in capital in our Consolidated Balance Sheets. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 20 – SUBSEQUENT EVENTS Refinance of New Zealand 2021 Senior Facilities Agreement: In February 2020, 2degrees entered into a new loan facility with aggregate commitments of $285 million NZD ($191.9 million based on the exchange rate at December 31, 2019). The new facility refinanced the $250 million NZD New Zealand 2021 Senior Facilities Agreement and provides additional borrowing capacity for further investments in our New Zealand business. The new facility has a three-year from 2degrees to its shareholders, including Trilogy LLC, will c The Company will evaluate the agreement in accordance with applicable accounting guidance for evaluating modifications, extinguishments and new issuances of debt during the first quarter of 2020, when the refinance was executed. NuevaTel Dividend Distribution: In January 2020, the Board of Directors of NuevaTel approved an aggregate dividend of $18.0 million for distribution to NuevaTel shareholders. NuevaTel paid those dividends, net of withholding taxes, to its shareholders in accordance with their respective ownership interest percentages. NuevaTel Debt Repayment and New Bank Loan: In February 2020, NuevaTel repaid the Bolivian 2021 Syndicated Loan which had an outstanding balance of $10.0 million as of December 31, 2019. The Bolivian 2021 Syndicated Loan was repaid primarily with the proceeds from a loan of $8.3 million (the “Bolivian 2021 Bank Loan”) which was entered into with Banco Nacional de Bolivia S.A. in February 2020. The Bolivian 2021 Bank Loan is required to be repaid in full in July 2021. Interest on the Bolivian 2021 Bank Loan accrues at a fixed rate of 7.0% and is payable on a biannual basis. The new loan agreement contains no financial covenants. Three switches are pledged as collateral to secure the Bolivian 2021 Bank Loan. Coronavirus Pandemic: In December 2019, a novel strain of coronavirus (SARS-CoV-2), which causes COVID-19, was reported to have surfaced. The spread of this virus has impacted the activities and performance of certain businesses beginning in January 2020 with varying level of effect depending on the nature and geography of business activities. In March 2020, the World Health Organization declared the outbreak of COVID-19 to be a pandemic, and certain global economies began to experience pronounced effects. Although this pandemic is likely to affect business activities for 2degrees and NuevaTel over the course of 2020, the impact is in the early stages. The duration and level of effect on supply chain for handset and network equipment, influence on telecommunications customer behaviors, and overall impact on global economies is not currently knowable. Therefore, although related financial impacts on our business have not been material to-date, future effects cannot be reasonably estimated at this time. |
DESCRIPTION OF BUSINESS, BASI_2
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates: | Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and the amounts of revenues and expenses reported for the periods presented. Certain estimates require difficult, subjective or complex judgments about matters that are inherently uncertain. Actual results could differ from those estimates. Examples of significant estimates include the allowance for doubtful accounts, the useful lives of property and equipment, amortization periods for intangible assets, fair value of financial instruments and equity-based compensation, imputed discount on equipment installment receivables, cost estimates for asset retirement obligations, realizability of deferred income taxes, fair value measurements related to goodwill, spectrum licenses and intangibles, projections used in impairment analysis, evaluation of minimum operating lease terms, the allocation of purchase price in connection with business combinations and the period for recognizing prepaid and postpaid revenues based on breakage. |
Cash and Cash Equivalents: | Cash and Cash Equivalents: Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less at the acquisition date or with a variable rate which can be liquidated on demand. The balance of cash and cash equivalents held by our consolidated subsidiaries was $67.8 million and $39.3 million as of December 31, 2019 and 2018, respectively. Of these balances , $16.4 million and $12.1 million was held by 2degrees and $51.3 million and $27.0 million was held by NuevaTel, as of December 31, 2019 and 2018, respectively. |
Short-term Investments: | Short-term Investments: The Company’s short-term investments, consisting primarily of U.S. Treasury securities and commercial paper with original maturities of more than three months from the date of purchase, are considered available-for-sale |
Restricted Cash: | Restricted Cash: The Company classifies cash as restricted when the cash is unavailable for use in general operations. The Company had $1.7 million and $0.5 million of restricted cash as of December 31, 2019 and 2018, respectively, primarily held to offset the current installment due under the Bolivian 2021 Syndicated Loan agreement (see Note 7 – Debt) or held as collateral for performance obligations under certain contracts with suppliers. |
Accounts Receivable, net: | Accounts Receivable, net: Accounts receivable consist primarily of amounts billed and due from customers, other wireless service providers, and dealers and are generally unsecured. Local interconnection and telecom cooperative receivables due from other wireless service providers represented $17.4 million and $28.9 million of Accounts receivable, net at December 31, 2019 and 2018, respectively. Interconnection receivables and payables are reported on a gross basis i i i I ) Management makes estimates of the uncollectability of its accounts receivable. In determining the adequacy of the allowance for doubtful accounts, management analyzes historical experience and current collection trends, known troubled accounts, receivable aging and current economic trends. The Company writes off account balances against the allowance for doubtful billed accounts when collection efforts are unsuccessful. Provisions for uncollectible receivables are included in General and administrative expenses. The allowance for doubtful accounts was $5.3 million and $6.3 million as of December 31, 2019 and 2018, respectively. |
EIP Receivables: | EIP Receivables: In New Zealand, 2degrees offers certain wireless customers the option to pay for their handsets in installments over a period of up to 36 months using an EIP. In Bolivia, in 2018, NuevaTel began offering , , 2degrees initially assesses the credit quality of each EIP applicant . At the time of sale of handsets under installment plans, we impute risk adjusted interest on certain receivables associated with EIPs. We record any deferral of this imputed discount as a reduction in EIP receivables, net in our Consolidated Balance Sheets and amortize the deferred amount over the financed device payment term in Non-subscriber The Company establishes an al l In August 2019, 2degrees entered into an EIP receivables secured borrowing arrangement with an intermediary purchasing entity (the “Purchaser”) and financial institutions that lend capital to the Purchaser. The transfer of receivables through this arrangement does not qualify as a sale of financial assets under GAAP and as such is recorded as a secured borrowing. Upon transfer to the Purchaser, the Company does not derecognize the receivables or related allowance for doubtful accounts and unamortized imputed discount. The above summary of EIP receivables accounting policy remains applicable for unbilled EIP receivables sold through this arrangement. For further information, see Note 4 – EIP Receivables. |
Inventories: | Inventories: Inventory consists primarily of wireless devices and accessories. Cost is determined by the first-in, first-out the , Handset costs in excess of the revenues generated from handset sales, or handset subsidies, are expensed at the time of sale. The Company does not recognize the expected handset subsidies prior to the time of sale because the promotional discount decision is made at the point of sale and/or because the Company expects to recover the handset subsidies through service revenues. For certain inventories held by a third-party distribution and logistics company located in New Zealand, the Company records inventories i |
Property and Equipment: | Property and Equipment: Property and equipment is recorded at cost or fair value for assets acquired as part of business combinations , 40 pre-construction Interest expense incurred during the construction phase of the Company’s wireless networks is capitalized as part of property and equipment until assets are placed into service. Capitalized interest costs are amortized over the estimated useful lives of the related assets. Capitalized interest for the years ended December 31, 2019, 2018 and 2017 was $1.1 million, $1.2 million and $1.1 million, respectively. In July 2018, 2degrees updated the terms and conditions of the fixed broadband agreements with residential customers. The agreements with new subscribers, starting on July 1, 2018, state that 2degrees will assume ownership of customer premises equipment, i.e., modems, and lease such equipment to these subscribers. As such, in accordance with the applicable accounting guidance for leases, the Company has reclassified its customer premises equipment from Inventory to Equipment i i Income ( ) The Company capitalizes certain costs incurred in connection with developing or acquiring internal use software. Capitalization of software costs commences once selection of a specific software project has been made and the Company approves and commits to funding the project. Capitalized costs include direct development costs associated with internal use software, including internal direct labor costs and external costs of materials and services. Capitalized software costs are included in Property and equipment, net and amortized on a straight-line basis over the estimated useful life of the asset. Costs incurred during the preliminary project stage, as well as maintenance and training costs, are expensed as incurred. The Company records an asset retirement obligation (“ARO”) for the fair value of legal obligations associated with the retirement of tangible long-lived assets and rec ords a Income ( ) The significant assumptions used in estimating the ARO include the following: a probability that the Company’s leases with ARO will be remediated at the lessor’s directive; expected settlement dates that coincide with lease expiration dates plus estimated lease extensions; remediation costs that are indicative of what third party vendors would charge the Company to remediate the sites; expected inflation rates that are consistent with historical inflation rates; and credit-adjusted risk-free interest rates which approximate the Company’s incremental borrowing rates. |
License Costs and Other Intangible Assets: | License Costs and Other Intangible Assets: Intangible assets consist primarily of wireless spectrum licenses in foreign markets, tradenames and subscriber relationships. License costs primarily represent costs incurred to acquire wireless spectrum licenses in foreign markets, which are recorded at cost, and the value attributed to wireless spectrum licenses acquired in business combinations. Amortization begins with the commencement of service to customers . using the straight-line method corresponding to the expiration dates of the licenses as issued by the regulators. Licenses, subject to certain conditions, are usually renewable and are generally non-exclusive. Subscriber relationships were acquired as part of the acquisition in New Zealand of our fixed broadband communications services provider, Snap Limited, in 2015 and relate to established relationships with residential and enterprise customers through contracts for fixed broadband services. Subscriber relationships are amortized over the estimated useful life of 7 years using an accelerated method, which we believe best reflects the estimated pattern in which the economic benefits of the assets will be consumed. |
Impairment of Long-Lived Assets: | Impairment of Long-Lived Assets: The Company evaluates its long-lived assets, including intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Asset groups are determined at the lowest level for which identifiable cash flows are largely independent of cash flows of other groups of assets and liabilities. When the carrying amount of a long-lived asset group is not fully recoverable and exceeds its fair value, an impairment loss is recognized equal to the excess of the asset group’s carrying value over the estimated fair value. We determine fair value by using a combination of comparable market values, estimated future discounted cash flows and appraisals, as appropriate. There were no events or changes in circumstances that indicated impairment would be recorded for long-lived assets for the fiscal years ended December 31, 2019, 2018 and 2017. |
Goodwill: | Goodwill: Goodwill is the excess of the cost of an acquisition of businesses over the fair value of the net identifiable assets acquired as of the acquisition date. The Company reviews goodwill for impairment annually and also during interim periods if events or changes in circumstances indicate the occurrence of a triggering event. During the fourth quarter of fiscal year 2018, we changed the date of our annual impairment test from December 31 to November 30 to align more effectively with the timing of our annual reporting requirements and other administrative processes. We believe the change did not delay, accelerate, or avoid an impairment charge and does not result in adjustments to our financial statements when applied retrospectively. Effective December 31, 2017, we prospectively adopted accounting guidance that simplifies our goodwill impairment testing by eliminating the requirement to calculate the implied fair value of goodwill (formerly “step two”) in the event that an impairment is identified. Instead, an impairment charge is recorded based on the excess of the reporting unit’s carrying amount over its fair value. We may first elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment test. If we do not perform this we will test on |
Derivative Instruments and Hedging Activities: | Derivative Instruments and Hedging Activities: We employ risk management strategies, which may include the use of interest rate swaps, cross-currency swaps and forward exchange contracts. We do not hold or enter into derivative instruments for trading or speculative purposes. Derivatives are recognized in the Consolidated Balance Sheets at fair value. Changes in the fair values of derivative instruments designated as “cash flow” hedges, to the extent the hedges are highly effective, are recorded in Other comprehensive (loss) income. Derivative instruments not qualifying for hedge accounting or ineffective portions of cash flow hedges, if any, are recognized in current period earnings. The Company assesses, both at inception of the hedge and on an ongoing basis, whether derivatives used as hedging instruments are highly effective in offsetting the changes in the fair value or cash flow of the hedged items. If it is determined that a derivative is not highly effective as a hedge or ceases to be highly effective, the Company discontinues hedge accounting prospectively. As of December 31, 2019 and 2018, no derivative instruments were designated for hedge accounting. |
Fair Value Measurements: | Fair Value Measurements: The Company applies fair value accounting for all financial assets and liabilities and non-financial |
Warrant Liability: | Warrant Liability: TIP Inc.’s outstanding warrants are recorded as a liability, as the warrants are written options that are not indexed to Common Shares. The warrant liability is recorded in Other current liabilities and accrued expenses i in i Income ( ) non-cash was record ed between the Canadian dollar (the currency in which the warrants are denominated) and United States dollar. |
Mezzanine Equity: | Mezzanine Equity: Three pre-Arrangement |
Required Distributions: | Required Distributions: Trilogy LLC is required to make quarterly distributions to its members on a pro rata basis in accordance with each member’s ownership interest in amounts sufficient to permit members to pay the tax liabilities resulting from allocations of income tax items from Trilogy LLC. Trilogy LLC was in a net taxable loss position for the years ended December 31, 2019, 2018 and 2017; therefore, no tax distributions were made to its members related to these tax years. |
Revenue Recognition: | Revenue Recognition (effective January 1, 2019): The Company derives its revenues primarily from wireless services, wireline services and equipment sales. Revenues are recognized when control of the services and equipment is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The Company’s revenue recognition policy follows guidance from Revenue from Contracts with Customers (“Topic 606”). The Company determines revenue recognition through the following five-step framework: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in each contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in each contract • Recognition of revenue when, or as, we satisfy a performance obligation Significant Judgments The most significant judgments affecting the amount and timing of revenue from contracts with our customers include the following items: • The assessment of legally enforceable rights and obligations involves judgment and impacts our determination of contractual term, transaction price and related disclosures. • Our products are generally sold with a right of return, which is accounted for as variable consideration when estimating the amount of revenue to recognize. Expected device returns are estimated based on historical experience. • Identifying distinct performance obligations within our service plans may require significant judgment. • For contracts that involve more than one product or service (or multiple performance obligations), determining the standalone selling price for each product or service (or performance obligation) may require significant judgment. • Determining costs that we incur to obtain or fulfill a contract may require significant judgment. • For capitalized contract costs, determining the amortization period as well as assessing the indicators of impairment may require significant judgment. Wireless Services and Related Equipment The Company enters into contracts with consumer and business customers for postpaid wireless services, prepaid wireless services and wireless equipment. Customers may elect to purchase wireless services or equipment separately or together. For wireless service and wireless equipment contracts entered into within a short period of time, we follow the contract combination guidance and assess the contracts as a single arrangement. The Company generates wireless services revenues from providing access to, and usage of, our wireless communications network. Performance obligations included in a typical wireless service contract with a customer include data, voice and text message services. We recognize revenue using an output method, either as the services are used or as time elapses if doing so reflects the pattern by which we satisfy our performance obligation through the transfer of the service to the customer. Wireless monthly service contracts are billed monthly either in advance or arrears based on a fixed fee. Prepaid wireless services sold to customers are recorded as deferred revenue prior to the services being provided to the customer or expiration of the obligation to provide the services . When prepaid service credits are not subject to expiration or have not yet expired, the Company estimates breakage (cash consideration received for prepaid services but never expected to be redeemed by customers) based upon historical usage trends. The Company’s policy is to recognize revenue for estimated breakage in proportion to the pattern s Postpaid monthly wireless services sold to customers are billed monthly in arrears. Postpaid wireless customer contracts are generally either month-to-month ( s an month-to-month We also generate revenues from the sale of wireless equipment to consumer and business subscribers. Performance obligations associated with a typical wireless equipment contract with a customer include handset and accessory equipment. We recognize revenue at a point in time when the device or accessory is delivered to the customer. We offer certain postpaid customers the option to pay for devices and accessories in installments using an EIP. We assessed this payment structure and concluded that there is a financing component related to the EIP. However, we have determined that the financing component for certain direct channel customer classes in the postpaid wireless plans is not significant and therefore we have not recorded interest income over the repayment period for these customer transactions. Wireline Services and Related Equipment We enter into wireline or broadband arrangements with consumer and business subscribers. Wireline service performance obligations include broadband internet services and voice services. We recognize revenue using an output method, as time elapses, because it reflects the pattern by which we satisfy our performance obligation through the transfer of service to the customer. Broadband arrangements are billed monthly. Performance obligations included in a typical wireline broadband contract, as defined by Topic 606, include modem equipment, when sold, and telephone equipment. For these sales, we recognize revenue when the device or accessory is delivered to the customer. During 2018, 2degrees updated the terms and conditions of its own Income ( ) We enter into managed service arrangements with large enterprises and governments. Wireline service performance obligations associated with managed service arrangements include managed network services, internet services and voice services. We recognize revenue using an output method, as time elapses, because it reflects the pattern by which we satisfy our performance obligation through the transfer of s In the context of our our business , used by Wireline customer contracts are generally either month-to-month s that Equipment In addition to selling equipment in connection with wireless and wireline service contracts, as discussed above, we also sell equipment on a standalone basis to dealers and resellers for a fixed fee. The performance obligations include handset and accessory equipment. We recognize revenue when the handset or accessory is delivered to the dealer or reseller as the dealer and reseller is our customer. At the time of delivery, the customer acquires legal title, as physical possession and risks and rewards of ownership have transferred to the customer with no additional conditions to customer acceptance. Interconnection Interconnection revenues are generated when calls from other operators terminate in the Company’s networks and are recognized in the period the termination occurs . Transaction Price and Allocations We have elected to utilize a practical expedient and account for shipping and handling activities that occur after control of the related good transfers as fulfillment activities instead of assessing such activities as performance obligations. We establish provisions for estimated device returns based on historical experience. We assess whether the amounts due under our contracts are probable of collection. For those not probable of collection, we do not recognize revenue until the contract is completed and cash is received. Collectability is re-assessed Consideration payable to a customer is treated as a reduction of the total transaction price, unless the payment is in exchange for a distinct good or service, such as certain commissions paid to dealers. As an accounting policy election, we exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer (for example, sales, use, value added and some excise taxes). We may offer a right of return on our products for a short time period after a sale. These rights are accounted for as variable consideration when determining the transaction price and, accordingly, we recognize revenue based on the estimated amount to which we expect to be entitled net of expected returns. Returns and credits are estimated at contract inception based on historical experience with similar classes of customers and updated at the end of each reporting period as additional information becomes available. Transaction price is allocated to each performance obligation based on its relative standalone selling price (“SSP”). SSP is the price for which we would sell the good or service on a standalone basis without a promotional discount. Judgment is required to determine the SSP for each distinct performance obligation. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions, costs plus a margin and other observable inputs. Warranties and Indemnifications The Company’s equipment is typically provided with an assurance-type warranty that it will perform in accordance with the Company’s on-line Contract Modifications Our s e c See Note 1 – Description of business, basis of presentation and summary of significant accounting policies included in our consolidated financial statements and accompanying notes for the year ended December 31, 2018 for additional discussion regarding the accounting policies that governed revenue recognition prior to January 1, 2019. |
Advertising Costs: | Advertising Costs: The Company expenses the cost of advertising as incurred. Advertising expense for the years ended December 31, 2019, 2018 and 2017 were $18.6 million, $20.9 million and $19.5 million, respectively. |
Operating Leases: | Operating Leases: Our subsidiaries’ cell sites are typically situated on leased property including land, towers and rooftop locations. R s their non-cancelable non-cancelable |
Defined Contribution Plan: | Defined Contribution Plan: The Company has a defined contribution plan whereby participants may contribute a portion of their eligible pay to the plan through payroll withholdings. The Company provides matching contributions based on the amount of eligible compensation contributed by the employees. Total contributions by the Company were $0.1 million for each of the years ended December 31, 2019, 2018 and 2017. |
Equity-Based Compensation: | Equity-Based Compensation: The Company measures compensation costs for all equity-based payment awards made to employees based on the estimated fair values at the either the grant date for equity classified awards or quarterly for liability classified awards. During 2018, we early adopted the Accounting Standards Update (“ASU”) 2016-09 i |
Net Earnings (Loss) Per Share ("EPS"): | Net Earnings (Loss) Per Share (“EPS”): EPS is calculated using the two-class two-class pro-rata Basic income/(loss) per share (“Basic EPS”) is computed by dividing net income/(loss), less net income/(loss) available to participating securities, by the basic weighted average Common Shares outstanding. Diluted income/(loss) per share (“Diluted EPS”) is calculated by dividing attributable net income/(loss) by the weighted average number of Common Shares plus the effect of potential dilutive Common Shares outstanding during the period. Diluted EPS excludes all potentially dilutive units if the effect of their inclusion is anti-dilutive, the attributable service condition was not met, or if the underlying potentially dilutive units are out-of-the-money. |
Foreign Currency Remeasurement and Translation: | Foreign Currency Remeasurement and Translation: The functional currency for our Bolivian operation is the U.S. dollar and for our New Zealand operation is the New Zealand dollar, since the majority of the revenues and expenses in those operations are denominated in those currencies. However, portions of the revenues earned and expenses incurred by our subsidiaries are denominated in currencies other than their functional currency. Transactions that involve such other currencies are remeasured into the functional currency based on a combination of both current and historical exchange rates. All foreign currency asset and liability amounts are remeasured at end-of-period Our reporting currency is the U.S. dollar. Thus, assets and liabilities from our New Zealand operation are translated from the New Zealand dollar into the U.S. dollar at the exchange rate on the balance sheet date while revenues and expenses are translated at the average exchange rate in the month they occurred. Gains and losses from the translation of our New Zealand operation’s financial statements into U.S. dollars are included in Accumulated other comprehensive income i |
Income Taxes: | Income Taxes: For our taxable subsidiaries, we account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning We record uncertain tax positions on the basis of a two-step more-likely-than-not We recognize interest and penalties related to unrecognized tax benefits i Income ( ) i |
Concentrations: | Concentrations: The Company’s revenues are attributable to our international operations. The Company’s operations are subject to various political, economic, and other risks and uncertainties inherent in the countries in which the Company operates. Among other risks, the Company’s operations are subject to the risks of restrictions on transfer of funds; export duties, quotas and embargoes; domestic and international customs and tariffs; changing taxation policies; foreign exchange restrictions; and political conditions and governmental regulations. For key financial information of our subsidiaries in New Zealand and Bolivia, see Note 18 – Segment Information. |
Recently Issued Accounting Standards: | Accounting Pronouncements Adopted During the Current Year: As an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) the Company may defer adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company intends to elect to use the extended transition period. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who have adopted these new or revised accounting standards that are applicable to public companies. Revenue In May 2014, the Financial Accounting Standards Board (“FASB”) issued Topic 606, and has since modified the standard with several ASUs (collectively, the “new revenue standard”). The new revenue standard requires entities to recognize revenue through the application of a five-step model, which includes: identification of the contract; identification of the performance obligations; determination of the transaction price; allocation of the transaction price to the performance obligations; and recognition of revenue as the entity satisfies the performance obligations. The new revenue standard also amends current guidance for the recognition of costs to obtain and fulfill contracts with customers such that incremental costs of obtaining, and direct costs of fulfilling, contracts with customers will be deferred and amortized consistent with the transfer of the related good or service. Under the JOBS Act, we adopted the new revenue standard beginning on January 1, 2019 using the modified retrospective method. This method requires the cumulative effect of initially applying the new revenue standard to be recognized at the date of adoption. Financial information prior to our adoption date has not been adjusted. The new revenue standard allows certain practical expedients to be elected upon implementation. We elected to apply the new revenue standard to contracts not completed as of our adoption date, referred to as open contracts. We have additionally elected the practical expedient that permits an entity to reflect the aggregate effect of all of the modifications (on a contract-by-contract id The cumulative effect of initially applying the new revenue standard to all open contracts as of January 1, 2019 is as follows: January 1, 2019 Beginning Impact of Beginning Assets EIP receivables, net $ 22,165 $ 256 $ 22,421 Prepaid expenses and other current assets 12,609 7,661 20,270 Deferred income taxes 10,746 (1,431 ) 9,315 Other assets 23,648 620 24,268 Liabilities and Shareholders’ Deficit Customer deposits and unearned revenue $ 16,995 $ 1,971 $ 18,966 Other current liabilities and accrued expenses 143,435 750 144,185 Total shareholders’ deficit (33,616 ) 4,385 (29,231 ) Additionally, financial statement results as reported under the new revenue standard as c o i Year Ended December 31, 2019 Previous Impact of New Revenue Revenues Wireless service revenues $ 461,734 $ (4,542 ) $ 457,192 Wireline service revenues 69,481 (164 ) 69,317 Equipment sales 153,256 4,250 157,506 Non-subscriber ILD and other revenues 10,389 (477 ) 9,912 Total revenues 694,860 (933 ) 693,927 Operating expenses Cost of equipment sales 164,508 35 164,543 Sales and marketing 95,744 (12,602 ) 83,142 Other operating expenses 417,584 — 417,584 Total operating expenses 677,836 (12,567 ) 665,269 Operating income 17,024 11,634 28,658 Other expenses, net (45,432 ) — (45,432 ) Income tax benefit 44,120 (3,324 ) 40,796 Net income 15,712 8,310 24,022 Less: Net income attributable to noncontrolling interests (17,002 ) (4,142 ) (21,144 ) Net (loss) income attributable to Trilogy International Partners Inc. $ (1,290 ) $ 4,168 $ 2,878 Net (loss) income attributable to Trilogy International Partners Inc. per share: Basic $ (0.02 ) $ 0.07 $ 0.05 Diluted $ (0.02 ) $ 0.07 $ 0.05 As of December 31, 2019 Previous Impact of New Revenue Assets EIP receivables, net $ 29,128 $ 2,622 $ 31,750 Prepaid expenses and other current assets 13,219 12,350 25,569 Deferred income taxes 78,032 (4,816 ) 73,216 Other assets 25,054 6,492 31,546 Liabilities and Shareholders’ Deficit Customer deposits and unearned revenue $ 17,262 $ 2,975 $ 20,237 Other current liabilities and accrued expenses 122,753 859 123,612 Total shareholders’ deficit (20,606 ) 12,814 (7,792 ) The primary impact on our financial statements upon adoption of the new revenue standard, both as of January 1, 2019 and on the current period financial statement results, as compared to the previous revenue standard, is as follows: • Prior to the adoption of Topic 606, the amount of revenue recognized when equipment was sold was limited to the amount of consideration that was not contingent on the provision of future services, which was typically limited to the amount of consideration received or receivable from the customer at the time of sale. Under Topic 606, the total consideration in the contract is allocated between wireless equipment and service based on their relative standalone selling prices. This change primarily impacts our arrangements that include sales of wireless devices and wireline equipment at subsidized prices in conjunction with a fixed-term plan for service, also known as the subsidy model. Accordingly, under Topic 606, generally more revenue is recognized initially upon sale of the equipment to the customer and less revenue is recognized as • Prior to the adoption of Topic 606, we expensed contract acquisition costs, including commissions, as they were incurred. Under Topic 606, we defer and capitalize incremental contract acquisition costs, including commissions paid to acquire postpaid and prepaid service contracts, and recognize them over the period of the benefit to which the costs relate. Deferred contract costs have an average amortization period ranging between 1 to 3 years , subject to periodic adjustment to reflect any significant change in assumptions. In addition, the deferred contract cost asset will be assessed for impairment on a periodic basis. Contract costs capitalized for new contracts will accumulate during the initial years under Topic 606, which will generally result in lower sales and marketing expense in our Consolidated Statement of Operations and Comprehensive Income (Loss) in those years as compared to results under the prior revenue standard. As capitalized costs are amortized, the accretive impact to operating income anticipated in the initial year of Topic 606 adoption is expected to moderate in the second and third years and become insignificant in the fourth year as the timing impact of deferring these costs is offset by related amortization. • Under Topic 605, at the time of the sale of a device to a customer under an EIP, we imputed risk adjusted interest on the device payment plan agreement receivables. We recorded the imputed interest as a reduction to the related accounts receivable and amorti ze the de ferred amount See disclosures related to Contracts with Customers under the new revenue standard in Note 12 – Revenue from Contracts with Customers. Recently Issued Accounting Standards: In August 2018, the FASB issued ASU 2018-15 internal-use In June 2016, the FASB issued ASU 2016-13 2018-19, In February 2016, the FASB issued ASU 2016-02, right-of-use non-lease right-of-use Upon adoption of the new lease standard, we currently estimate that we will recognize a right-of-use $160 million million. We also expect to recognize a pre-tax $55 million to Accumulated deficit as of the effective date of adoption to eliminate deferred gains on sale-leaseback transactions which would have been recognized to income over an average period of ten years (see Note 2 – Property and Equipment for further information on the NuevaTel tower sale-leaseback transaction). At the transition date, we are required to reassess any previous sale-leaseback transactions that did not meet the sale-recognition accounting requirements to determine if sale has occurred and leaseback accounting is achieved under the new lease standard. Under the new lease standard, a sale is assessed using the transfer of control criteria in the new revenue standard. We expect certain of our previously unrecognized sale-leaseback transactions will be considered valid sales and leasebacks that will result in the removal of the tower-related assets and financing obligations, and the recognition of a pre-tax right-of-use Aside from the aforementioned impacts, we do not expect the adoption of the new lease standard to have a material impact in the Consolidated Statements of Operations and Comprehensive Income (Loss) or the Consolidated Statement of Cash Flows. The preparation for the adoption is continuing and the estimated impact of the adoption is preliminary. |
DESCRIPTION OF BUSINESS, BASI_3
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Schedule of cumulative effect of adoption of revenue standard | The cumulative effect of initially applying the new revenue standard to all open contracts as of January 1, 2019 is as follows: January 1, 2019 Beginning Impact of Beginning Assets EIP receivables, net $ 22,165 $ 256 $ 22,421 Prepaid expenses and other current assets 12,609 7,661 20,270 Deferred income taxes 10,746 (1,431 ) 9,315 Other assets 23,648 620 24,268 Liabilities and Shareholders’ Deficit Customer deposits and unearned revenue $ 16,995 $ 1,971 $ 18,966 Other current liabilities and accrued expenses 143,435 750 144,185 Total shareholders’ deficit (33,616 ) 4,385 (29,231 ) Additionally, financial statement results as reported under the new revenue standard as c o i Year Ended December 31, 2019 Previous Impact of New Revenue Revenues Wireless service revenues $ 461,734 $ (4,542 ) $ 457,192 Wireline service revenues 69,481 (164 ) 69,317 Equipment sales 153,256 4,250 157,506 Non-subscriber ILD and other revenues 10,389 (477 ) 9,912 Total revenues 694,860 (933 ) 693,927 Operating expenses Cost of equipment sales 164,508 35 164,543 Sales and marketing 95,744 (12,602 ) 83,142 Other operating expenses 417,584 — 417,584 Total operating expenses 677,836 (12,567 ) 665,269 Operating income 17,024 11,634 28,658 Other expenses, net (45,432 ) — (45,432 ) Income tax benefit 44,120 (3,324 ) 40,796 Net income 15,712 8,310 24,022 Less: Net income attributable to noncontrolling interests (17,002 ) (4,142 ) (21,144 ) Net (loss) income attributable to Trilogy International Partners Inc. $ (1,290 ) $ 4,168 $ 2,878 Net (loss) income attributable to Trilogy International Partners Inc. per share: Basic $ (0.02 ) $ 0.07 $ 0.05 Diluted $ (0.02 ) $ 0.07 $ 0.05 As of December 31, 2019 Previous Impact of New Revenue Assets EIP receivables, net $ 29,128 $ 2,622 $ 31,750 Prepaid expenses and other current assets 13,219 12,350 25,569 Deferred income taxes 78,032 (4,816 ) 73,216 Other assets 25,054 6,492 31,546 Liabilities and Shareholders’ Deficit Customer deposits and unearned revenue $ 17,262 $ 2,975 $ 20,237 Other current liabilities and accrued expenses 122,753 859 123,612 Total shareholders’ deficit (20,606 ) 12,814 (7,792 ) |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Plant, Property and Equipment | As of December 31, 2019 As of December 31, 2018 Land, buildings and improvements $ 9,391 $ 9,187 Wireless communication systems 811,344 785,548 Furniture, equipment, vehicles and software 196,215 176,267 Construction in progress 51,814 44,806 1,068,764 1,015,808 Less: accumulated depreciation (689,903 ) (620,967 ) Property and equipment, net $ 378,861 $ 394,841 |
Activity in AROs | The activity in the AROs was as follows: Years Ended December 31, 2019 2018 Beginning balance $ 21,689 $ 19,878 Revisions in estimated cash flows 17 296 Additional accruals 1,026 799 Foreign currency translation 119 (799 ) Accretion 1,420 1,623 Disposals (3,300 ) (108 ) Ending balance $ 20,971 $ 21,689 |
GOODWILL, LICENSE COSTS AND O_2
GOODWILL, LICENSE COSTS AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes Company's Goodwill Balance | The following table summarizes the changes in the Company’s goodwill balance: December 31, 2019 December 31, 2018 Beginning balance $ 9,014 $ 9,539 Foreign currency adjustment 32 (525 ) Balance at the end of the year $ 9,046 $ 9,014 |
License Costs and Other Intangible Assets | The Company’s license costs and other intangible assets consisted of the following: As of December 31, 2019 As of December 31, 2018 Estimated Gross Accumulated Net Gross Accumulated Net License costs 7 - 20 years $ 218,473 $ (124,105 ) $ 94,368 $ 187,415 $ (109,402 ) $ 78,013 Subscriber relationships 7 years 12,589 (11,165 ) 1,424 12,546 (9,670 ) 2,876 Other 6 - 3,542 (3,542 ) — 3,537 (3,439 ) 98 Total $ 234,604 $ (138,812 ) $ 95,792 $ 203,498 $ (122,511 ) $ 80,987 |
Estimated Future Amortization Expense | Estimated future amortization expense associated with the net carrying amount of license costs and other intangible assets, based on the exchange rate as of December 31, 2019, is as follows: Years E 2020 $ 12,053 2021 8,732 2022 7,596 2023 7,297 2024 7,297 Thereafter 52,817 Total $ 95,792 |
EIP RECEIVABLES (Tables)
EIP RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Equipment Installment Plan Receivables | The following table summarizes the unbilled EIP receivables: As of December 31, 2019 As of December 31, 2018 EIP receivables, gross $ 76,697 $ 50,072 Unamortized imputed discount (4,335 ) (3,784 ) EIP receivables, net of unamortized imputed discount $ 72,362 $ 46,288 Allowance for doubtful accounts (4,852 ) (2,907 ) EIP receivables, net $ 67,510 $ 43,381 As of December 31, 2019 As of December 31, 2018 Classified on the balance sheet as: EIP receivables, net $ 31,750 $ 22,165 Long-term EIP receivables 35,760 21,216 EIP receivables, net $ 67,510 $ 43,381 |
Equipment Installment Plan Receivables Credit Categories | The balances of EIP receivables on a gross basis by credit category as of the periods presented were as follows: As of December 31, 2019 As of December 31, 2018 Prime $ 55,764 $ 33,161 Subprime 20,933 16,911 Total EIP receivables, gross $ 76,697 $ 50,072 |
Changes in Carrying Amount of Unbilled EIP Receivables | The following table shows changes in the aggregate net carrying amount of the unbilled EIP receivables: December 31, 2019 December 31, 2018 Beginning balance of EIP receivables, net $ 43,381 $ 31,989 Additions 99,394 111,028 Billings and payments (50,579 ) (42,671 ) Sales of EIP receivables (23,276 ) (52,308 ) Foreign currency translation 1,086 (2,288 ) Change in allowance for doubtful accounts and imputed discount (2,496 ) (2,369 ) Total EIP receivables, net $ 67,510 $ 43,381 |
Summary of Impact of Sales of EIP receivables | The following table summarizes the impact of the sales of the EIP receivables in the years ended December 31, 2019 and 2018: December 31, 2019 December 31, 2018 EIP receivables derecognized $ 23,276 $ 52,308 Cash proceeds (20,313 ) (44,792 ) Reversal of unamortized imputed discount (1,773 ) (3,941 ) Reversal of allowance for doubtful accounts (1,397 ) (2,396 ) Pre-tax $ (207 ) $ 1,179 |
OTHER CURRENT LIABILITIES AND_2
OTHER CURRENT LIABILITIES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
OTHER CURRENT LIABILITIES AND ACCRUED EXPENSES | December 31, 2019 December 31, 2018 Payroll and employee benefits $ 17,538 $ 16,587 Income and withholding taxes 17,169 3,087 Handset purchases 16,746 37,405 Value-added tax and other business taxes 12,452 13,990 Dealer commissions and subsidies 11,484 13,411 Interconnection and roaming charges payable 8,798 13,017 Other 39,425 45,938 Other current liabilities and accrued expenses $ 123,612 $ 143,435 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents liabilities measured at fair value on a recurring basis as of December 31, 2019. There were no assets measured at fair value on a recurring basis as of December 31, 2019. Fair Value Measurement as of December 31, 2019 Total Level 1 Level 2 Level 3 Liabilities: Forward exchange contracts $ 336 $ — $ 336 $ — Warrant liability 107 107 — — Interest rate swaps 2,296 — 2,296 — Total liabilities $ 2,739 $ 107 $ 2,632 $ — The following table presents assets and liabilities measured at fair value on a recurring basis as of December 31, 2018: Fair Value Measurement as of December 31, 2018 Total Level 1 Level 2 Level 3 Assets: Short-term investments $ 1,986 $ — $ 1,986 $ — Forward exchange contracts 717 — 717 — Total assets $ 2,703 $ — $ 2,703 $ — Liabilities: Warrant liability $ 99 $ 99 $ — $ — Interest rate swaps 1,829 — 1,829 — Total liabilities $ 1,928 $ 99 $ 1,829 $ — |
Summary of Carrying Amounts and Estimated Values of Total Debt | The carrying amounts and estimated fair values of our total debt as of December 31, 2019 and 2018 were as follows: As of December 31, 2019 As of December 31, 2018 Carrying amount, excluding unamortized discount and deferred financing costs $ 568,419 $ 516,490 Fair value $ 546,301 $ 503,748 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Long-Term and Other Debt | The Company’s long-term and other debt as of December 31, 2019 and 2018 consisted of the following: As of December 31, 2019 As of December 31, 2018 Trilogy LLC 2022 Notes $ 350,000 $ 350,000 New Zealand 2021 Senior Facilities Agreement 154,887 137,554 Bolivian Tower Transaction Financing Obligation 16,757 — New Zealand EIP Receivables Financing Obligation 16,372 — Bolivian 2021 Syndicated Loan 10,015 15,022 Bolivian 2023 Bank Loan 7,112 4,000 Bolivian 2022 Bank Loan 5,249 7,000 Other 8,027 2,914 568,419 516,490 Less: deferred financing costs (5,189 ) (6,848 ) Less: unamortized discount (2,064 ) (2,817 ) Total debt 561,166 506,825 Less: current portion of debt (32,428 ) (8,293 ) Total long-term debt $ 528,738 $ 498,532 |
Schedule of Future Maturities of Long-term and Other debt, Excluding Unamortized Debt Discounts and Deferred Financing Costs | As of December 31, 2019, the future maturities of long-term and other debt, excluding deferred financing costs and unamortized debt discounts, consisted of the following: Years E 2020 $ 32,428 2021 164,086 2022 355,491 2023 3,452 2024 1,809 Thereafter 11,153 Total $ 568,419 |
Income and Withholding Tax Paid [Member] | |
Supplemental Cash Flow Disclosure | Supplemental Cash Flow Disclosure: Years Ended December 31, 2019 2018 2017 Income and withholding tax paid $ 11,874 $ 15,217 $ 11,628 |
Interest Paid [Member] | |
Supplemental Cash Flow Disclosure | Supplemental Cash Flow Disclosure: Years Ended December 31, 2019 2018 2017 Interest paid, net of capitalized interest $ 42,623 $ 43,650 $ 61,598 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summarized Financial Information for Aforementioned Derivative Financial Instruments | Summarized financial information for all of the aforementioned derivative financial instruments is shown below: Years Ended December 31, 2019 2018 2017 Non-cash $ (1,538 ) $ (1,362 ) $ (1,503 ) Loss reclassified from comprehensive loss to Other, net $ — $ — $ (118 ) Net cash settlement $ (1,054 ) $ (1,371 ) $ (1,602 ) |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Units Activity | The following table provides the outstanding RSUs as of December 31, 2019 and the changes in the period: RSUs Outstanding at December 31, 2018 1,385,255 Granted 1,500,000 Vested (446,728 ) Performance-based RSU adjustment 51,750 Outstanding at December 31, 2019 2,490,277 |
Schedule of Assumptions Used | The following table summarizes the range of assumptions used in the Black-Scholes model for Options granted in the years ended December 31, 2019 and 2018. There were no Options granted in the year ended December 31, 2017. 2019 2018 Expected volatility 27.5 % 25.0 % Expected term (in years) 4.80 2.75 - 3.94 Risk free interest rate 1.03 % 1.99% - 2.09 % Expected dividend yield 0 % 0 % |
Summary of Outstanding Options | The following table provides the outstanding Options as of December 31, 2019 and the changes in the period: Options Weighted- Weighted- Aggregate Outstanding at December 31, 2018 26,475,000 $ 1.45 Granted (1) 1,300,000 1.65 Forfeited (1) (250,000 ) 1.90 Redeemed (950,000 ) 1.18 Outstanding at December 31, 2019 26,575,000 1.46 2.5 $ 15,990 Exercisable at December 31, 2019 25,275,000 $ 1.45 2.2 $ 15,675 (1) Exercise price of the options granted and forfeited are denominated in NZD and were translated into USD at the exchange rate on the grant date of the related options. |
MEZZANINE EQUITY (Tables)
MEZZANINE EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Class A Unit Rights Redemption Term | The Former Class A Unit rights became redeemable based on the following schedule: Former Class A Units Date when redemption right became exercisable July 30, 2014 48,590 December 24, 2015 25,000 Total redeemable units 73,590 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the disaggregated reported revenue by category: Year Ended December 31, 2019 New Zealand Bolivia Other Total Postpaid wireless service revenues $ 170,371 $ 81,383 $ — $ 251,754 Prepaid wireless service revenues 88,771 102,830 — 191,601 Wireline service revenues 69,317 — — 69,317 Equipment sales 149,103 8,403 — 157,506 Other wireless service and other revenues 8,818 14,188 743 23,749 Total revenues $ 486,380 $ 206,804 $ 743 $ 693,927 |
Contract With Customer Asset | The following table represents changes in the contract assets balance: Contract Assets Balance at January 1, 2019 $ 5,231 Increase resulting from new contracts 3,957 Contract assets reclassified to a receivable or collected in cash (6,145 ) Foreign currency translation 1 Balance at December 31, 2019 $ 3,044 |
Contract With Customer Liability | The following table represents changes in the contract liabilities deferred revenue balance: Deferred Revenue Balance at January 1, 2019 $ 18,966 Net increase in deferred revenue 19,489 Revenue recognized related to the balance existing at January 1, 2019 (18,100 ) Foreign currency translation (118 ) Balance at December 31, 2019 $ 20,237 |
Capitalized Contract Cost | The following table represents changes in the contract costs balance: Contract Costs Balance at January 1, 2019 $ 3,050 Incremental costs of obtaining and contract fulfilment costs 19,519 Amortization included in operating costs (6,930 ) Foreign currency translation 159 Balance at December 31, 2019 $ 15,798 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | The components of basic and diluted earnings per share were as follows: Years Ended December 31, Period February 7, 2019 2018 (in thousands, except per share amounts) Basic EPS: Numerator: Net income (loss) attributable to TIP Inc. $ 2,878 $ (20,205 ) $ (15,337 ) Denominator: Basic weighted average Common Shares outstanding 56,629,405 53,678,914 44,692,369 Net income (loss) per share: Basic $ 0.05 $ (0.38 ) $ (0.34 ) Diluted EPS: Numerator: Net income (loss) attributable to TIP Inc. $ 2,878 $ (20,205 ) $ (15,337 ) Add back: Net loss attributable to Class C Units – Redeemable for Common Shares — (11,996 ) (18,444 ) Net income (loss) attributable to TIP Inc. and Class C Units $ 2,878 $ (32,201 ) $ (33,781 ) Denominator: Basic weighted average Common Shares outstanding 56,629,405 53,678,914 44,692,369 Effect of dilutive securities: Unvested RSUs 157,940 — — Weighted average Class C Units – Redeemable for Common Shares — 28,514,587 37,058,289 Diluted weighted average Common Shares outstanding 56,787,345 82,193,501 81,750,658 Net income (loss) per share: Diluted $ 0.05 $ (0.39 ) $ (0.41 ) |
Weighted Average Dilutive Effect of Common Shares Not Included in Computation of Diluted Earnings Per Share | The following table indicates the weighted average dilutive effect of Common Shares that may be issued in the future. These Common Shares were not included in the computation of diluted earnings per share for the year ended December 31, 2019 and 2018, and the period from February 7, 2017 through December 31, 2017, because the effect was either anti-dilutive or the conditions for vesting were not met: Years Ended December 31, Period February 7, 2019 2018 Class C Units 26,439,817 — — Warrants 13,402,685 13,402,685 13,402,685 Forfeitable Founders shares 1,675,336 1,675,336 1,675,336 Unvested RSUs 1,074,144 1,674,684 704,360 Unvested Class C Units 96,065 144,098 192,130 Common Shares excluded from calculation of diluted net income (loss) per share 42,688,047 16,896,803 15,974,511 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of the Components of Accumulated Other Comprehensive Income | A summary of the components of Accumulated other comprehensive income is presented below: Total Cumulative Unrealized December 31, 2017 $ 6,059 $ 6,058 $ 1 Other comprehensive loss (2,629 ) (2,629 ) — Unrealized net loss related to short-term investments (2 ) — (2 ) Net current period other comprehensive loss (2,631 ) (2,629 ) (2 ) December 31, 2018 $ 3,428 $ 3,429 $ (1 ) Other comprehensive income 986 986 — Unrealized net gain related to short-term investments 1 — 1 Net current period other comprehensive income 987 986 1 December 31, 2019 $ 4,415 $ 4,415 $ — |
NONCONTROLLING INTERESTS IN C_2
NONCONTROLLING INTERESTS IN CONSOLIDATED SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | There are noncontrolling interests in certain of the Company’s consolidated subsidiaries. The noncontrolling interests are summarized as follows: As of December 31, 2019 As of December 31, 2018 2degrees $ 39,223 $ 20,426 NuevaTel 45,122 51,165 Trilogy International Partners LLC (28,159 ) (32,874 ) Salamanca Solutions International LLC (698 ) (738 ) Noncontrolling interests $ 55,488 $ 37,979 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Line Items] | |
Schedule of Estimated Future Minimum Lease Payments | Estimated future minimum lease payments, utilizing current exchange rates at December 31, 2019, over the estimated lease terms are summarized below: Years Ending December 31, 2020 $ 25,148 2021 24,245 2022 21,861 2023 20,796 2024 20,126 Thereafter 88,361 Total $ 200,537 |
New Zealand | |
Commitments and Contingencies [Line Items] | |
Schedule of Minimum Purchase Commitments | Total purchase commitments for each of the next five years for New Zealand as of December 31, 2019, based on exchange rates as of that date, are as follows: Years Ending December 31, 2020 $ 47,439 2021 27,630 2022 28,737 2023 11,106 2024 11,106 |
Bolivia | |
Commitments and Contingencies [Line Items] | |
Other Commitments | Total purchase commitments for each of the next five years for Bolivia as of December 31, 2019 are as follows: Years Ending December 31, 2020 $ 27,123 2021 5,275 2022 2,110 2023 2,110 2024 2,110 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of (Loss) Income from Continuing Operations before Income Taxes | For financial reporting purposes, loss before income taxes includes the following components: Years Ended December 31, 2019 2018 2017 Canada $ (578 ) $ 5,934 $ 8,602 United States (42,578 ) (42,461 ) (65,071 ) Foreign 26,382 9,686 34,592 Loss before income taxes $ (16,774 ) $ (26,841 ) $ (21,877 ) |
Components of Income Tax Expense | Income tax ( benefit ) Years Ended December 31, Current: Canada $ — $ — $ — United States 125 350 — Foreign 23,734 7,148 7,652 23,859 7,498 7,652 Deferred: Canada $ — $ — $ — United States — — — Foreign (64,655 ) (2,609 ) 529 (64,655 ) (2,609 ) 529 Total income tax ( benefit $ (40,796 ) $ 4,889 $ 8,181 |
Schedule of Effective Income Tax Reconciliation | The reconciliation between income tax expense (benefit) from continuing operations and the income tax expense (benefit) that results from applying the Canadian federal statutory rate of 25% to consolidated pre-tax earnings is as follows: Years Ended December 31, 2019 2018 2017 Income tax benefit at Canadian federal rate $ (4,194 ) $ (6,710 ) $ (5,469 ) Earnings attributable to non-tax 3,502 3,815 8,597 Foreign rate differential 1,878 714 (1,996 ) Change in valuation allowance (45,037 ) 19,398 (21,586 ) Effect of intercompany asset transfer — (23,484 ) 25,987 Impact of tax law changes — 7,237 5,068 Foreign withholding tax incurred 1,316 2,259 692 Withholding taxes on unrepatriated foreign earnings (2,281 ) (1,212 ) 2,215 Inflation adjustment (1,824 ) (2,235 ) (1,333 ) Permanent adjustments 3,322 503 (3,001 ) Foreign exchange translation 30 2,668 (1,464 ) Other – net 2,492 1,936 471 Total $ (40,796 ) $ 4,889 $ 8,181 |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows: December 31, 2019 December 31, 2018 Intangible assets $ 9,457 $ 10,100 Fixed assets 18,503 20,445 Bad debt allowance 5,332 4,471 NOL and foreign tax credit carryforwards 23,920 24,759 Accrued liabilities 9,106 8,317 Inventory valuation 716 763 Excess business interest expense 9,489 4,625 Equity based compensation 2,678 2,885 Transaction costs 777 1,364 Tower sale deferred gain 13,758 — Tower sale financing obligation 4,198 — Other 6,293 4,211 Subtotal $ 104,227 $ 81,940 Less: valuation allowance (25,348 ) (70,279 ) Total net deferred tax assets $ 78,879 $ 11,661 Fixed assets $ (963 ) $ (915 ) NRS contract asset (4,914 ) — Withholding taxes on unrepatriated foreign earnings (9,523 ) (11,439 ) Total deferred tax liabilities $ (15,400 ) $ (12,354 ) Net deferred tax asset (liability) $ 63,479 $ (693 ) Classified on the balance sheet as: Deferred tax asset $ 73,216 $ 10,746 Deferred tax liability $ (9,737 ) $ (11,439 ) $ 63,479 $ (693 ) |
Open Tax Years by Jurisdiction | As of December 31, 2019, the following are the open tax years by jurisdiction: New Zealand 2014 – 2019 Bolivia 2014 – 2019 United States 2016 – 2019 Canada 2015 – 2019 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | The table below presents financial information for our reportable segments and reconciles total segment Adjusted EBITDA to Loss before income taxes: Year ended December 31, 2019 2018 2017 Revenues New Zealand $ 486,380 $ 556,410 $ 520,042 Bolivia 206,804 240,941 258,438 Unallocated Corporate & Eliminations 743 824 420 Total revenues $ 693,927 $ 798,175 $ 778,900 Adjusted EBITDA New Zealand $ 106,308 $ 90,396 $ 85,307 Bolivia 42,475 65,531 76,522 Equity-based compensation (4,041 ) (5,856 ) (2,853 ) Acquisition and other nonrecurring costs (6,946 ) (4,002 ) (5,765 ) Depreciation, amortization and accretion (109,845 ) (111,889 ) (106,909 ) Gain (loss) on disposal of assets and sale-leaseback transaction 11,169 (1,346 ) (682 ) Interest expense (45,988 ) (45,913 ) (59,754 ) Change in fair value of warrant liability 1 6,361 9,053 Debt modification and extinguishment costs — (4,192 ) (6,689 ) Other, net 555 (4,682 ) 1,329 Unallocated Corporate & Eliminations (10,462 ) (11,249 ) (11,436 ) Loss before income taxes $ (16,774 ) $ (26,841 ) $ (21,877 ) Depreciation, amortization and accretion New Zealand $ 64,197 $ 66,160 $ 60,805 Bolivia 44,944 45,107 45,925 Unallocated Corporate & Eliminations 704 622 179 Total depreciation, amortization and accretion $ 109,845 $ 111,889 $ 106,909 Capital expenditures New Zealand $ 59,555 $ 53,085 $ 53,904 Bolivia 25,636 29,659 37,215 Unallocated Corporate & Eliminations 21 180 1,233 Total capital expenditures $ 85,212 $ 82,924 $ 92,352 Total assets New Zealand $ 496,270 $ 440,385 Bolivia 331,538 289,402 Unallocated Corporate & Eliminations 10,819 9,241 Total assets $ 838,627 $ 739,028 |
Schedule of Revenues By Product or Service | The table below presents total revenues by product or service type for the years ended December 31, 2019, 2018 and 2017: New Zealand Bolivia Unallocated Total Year ended December 31, 2019 Wireless service revenues $ 261,218 $ 195,974 $ — $ 457,192 Wireline service revenues 69,317 — — 69,317 Equipment sales 149,103 8,403 — 157,506 Non-subscriber 6,742 2,427 743 9,912 Total revenues $ 486,380 $ 206,804 $ 743 $ 693,927 Year ended December 31, 2018 Wireless service revenues $ 265,947 $ 234,380 $ — $ 500,327 Wireline service revenues 61,804 — — 61,804 Equipment sales 217,015 4,595 — 221,610 Non-subscriber 11,644 1,966 824 14,434 Total revenues $ 556,410 $ 240,941 $ 824 $ 798,175 Year ended December 31, 2017 Wireless service revenues $ 274,168 $ 252,031 $ — $ 526,199 Wireline service revenues 57,131 — — 57,131 Equipment sales 175,096 3,740 — 178,836 Non-subscriber 13,647 2,667 420 16,734 Total revenues $ 520,042 $ 258,438 $ 420 $ 778,900 |
Description of Business, Basi_4
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | Jan. 01, 2020USD ($) | Feb. 07, 2017USD ($)shares | Jan. 09, 2017USD ($)shares | Dec. 31, 2019USD ($)Segmentshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Proceeds from issuance of Common Stock | $ 199,267 | |||||
Warrants outstanding | shares | 13,402,685 | 13,402,685 | ||||
Number of reportable segment | Segment | 2 | |||||
Cash and cash equivalents | $ 76,729 | $ 43,942 | ||||
Restricted cash | 1,700 | 500 | ||||
Accounts receivable | 60,881 | 71,917 | ||||
Allowance for doubtful accounts | 5,300 | 6,300 | ||||
Interest costs capitalized | 1,100 | 1,200 | 1,100 | |||
Non-cash gain due to change in fair value of warrant liabilities | (1) | (6,361) | (9,053) | |||
Advertising costs | $ 18,600 | 20,900 | 19,500 | |||
Lease contracts, term | Lease contracts expire on various dates through 2053 and generally provide for renewal options of up to an additional ten years exercisable at our discretion. | |||||
Defined contribution plan by the company | $ 100 | 100 | $ 100 | |||
Buildings | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, useful life | 40 years | |||||
Customer Premise Equipment | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, useful life | 3 years | |||||
Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Year through which lease contracts expire on various dates | Dec. 31, 2069 | |||||
Lease contracts, additional renewal, term | 10 years | |||||
Maximum | Wireless communication systems | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, useful life | 20 years | |||||
Maximum | Furniture, equipment, vehicles and software | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, useful life | 17 years | |||||
Minimum | Wireless communication systems | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, useful life | 2 years | |||||
Minimum | Furniture, equipment, vehicles and software | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, useful life | 2 years | |||||
Class A Units | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Recapitalized stock units, shares | shares | 157,339,668 | |||||
Class B Units | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Recapitalized stock units, shares | shares | 44,177,149 | |||||
Class C Units | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Recapitalized stock units, shares | shares | 39,142,787 | |||||
Common Stock Class A and Class B [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Proceeds from issuance of Common Stock | $ 199,300 | |||||
2degrees | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | $ 16,400 | 12,100 | ||||
Trilogy LLC | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage increase in ownership due to conversion | 0.20% | |||||
Percentage of equity interest held | 53.00% | |||||
Consolidated Subsidiaries | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | $ 67,800 | 39,300 | ||||
Nueva Tel | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | $ 51,300 | 27,000 | ||||
Class A Unit Holders | Trilogy LLC | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of voting right held | 100.00% | |||||
Class C Unit Holders | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Lock-up provisions for redemption rights | 24 months | |||||
Class C Unit Holders | Trilogy LLC | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Equity interest in Trilogy LLC | 47.00% | |||||
2degrees | Trilogy LLC | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Converted outstanding intercompany loan | $ 13,900 | |||||
Debt conversion, shares issued | shares | 10,920,280 | |||||
Percentage increase in ownership due to conversion | 1.00% | |||||
Percentage of ownership before conversion | 63.90% | 62.90% | ||||
Percentage of ownership after conversion | 73.30% | 63.90% | ||||
Purchase price in the form of cash | $ 1,400 | |||||
Ownership percentage | 73.20% | |||||
Nueva Tel | Trilogy LLC | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Ownership percentage | 71.50% | |||||
Other current liabilities and accrued expenses | Warrants | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Warrant liability | $ 100 | 100 | ||||
Accounting Standards Update 2014-09 | Deferred Contract Costs | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Deferred contract cost average amortization period | 3 years | |||||
Accounting Standards Update 2014-09 | Deferred Contract Costs | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Deferred contract cost average amortization period | 1 year | |||||
Accounting Standards Update 2016-02 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Cumulative effect of applying new standard on accumulated deficit on pre-tax basis | $ 10,000 | |||||
Cumulative effect on retained earnings | $ 55,000 | |||||
Accounting Standards Update 2016-02 | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Lease assets | 170,000 | |||||
Lease liability | 170,000 | |||||
Accounting Standards Update 2016-02 | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Lease assets | 160,000 | |||||
Lease liability | $ 160,000 | |||||
License costs | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated Useful Life | 20 years | |||||
License costs | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated Useful Life | 7 years | |||||
Spectrum licenses group one | 2degrees | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Spectrum licenses, expiration year | 2021 | |||||
Spectrum licenses group two | 2degrees | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Spectrum licenses, expiration year | 2031 | |||||
Subscriber relationships | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated Useful Life | 7 years | |||||
Local Interconnection And Telecom Cooperative | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Accounts receivable | $ 17,400 | $ 28,900 | ||||
Equipment Installment Plan Receivables | Bolivia | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Installment period for handsets bought using an EIP | 18 months | |||||
Equipment Installment Plan Receivables | Maximum | New Zealand | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Installment period for handsets bought using an EIP | 36 months |
Description of Business, Basi_5
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of cumulative effect of adoption of revenue standard (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||||
Feb. 06, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | ||
Assets | |||||||
EIP receivables, net | $ 31,750 | $ 22,165 | $ 22,421 | ||||
Prepaid expenses and other current assets | 25,569 | 12,609 | 20,270 | ||||
Deferred income taxes | 73,216 | 10,746 | 9,315 | ||||
Other assets | 31,546 | 23,648 | 24,268 | ||||
Liabilities and Shareholders' Deficit | |||||||
Customer deposits and unearned revenue | 20,237 | 16,995 | 18,966 | ||||
Other current liabilities and accrued expenses | 123,612 | 143,435 | 144,185 | ||||
Total shareholders' deficit | $ 6,190 | (7,792) | (33,616) | $ 6,190 | (29,231) | ||
Revenues | |||||||
Total revenues | 693,927 | 798,175 | 778,900 | ||||
Operating expenses | |||||||
Cost of equipment sales | 164,543 | 233,781 | 197,685 | ||||
Sales and marketing | 83,142 | 100,623 | 103,348 | ||||
Other operating expenses | 417,584 | ||||||
Total operating expenses | 665,269 | ||||||
Operating income | 28,658 | 21,585 | 34,184 | ||||
Other Income and Expenses [Abstract] | |||||||
Other expenses, net | (45,432) | (48,426) | (56,061) | ||||
Income tax benefit | 40,796 | (4,889) | (8,181) | ||||
Net income (loss) | $ (1,066) | (28,992) | 24,022 | (31,730) | (30,058) | ||
Less: Net income attributable to noncontrolling interests | (21,144) | 11,525 | 14,721 | ||||
Net income (loss) attributable to Trilogy International Partners Inc. | $ (15,337) | $ 2,878 | $ (20,205) | $ (15,337) | |||
Net (loss) income attributable to Trilogy International Partners Inc. per share: | |||||||
Basic | $ (0.34) | $ 0.05 | $ (0.38) | $ (0.34) | [1] | ||
Diluted | $ (0.41) | $ 0.05 | $ (0.39) | $ (0.41) | [1] | ||
Wireless Service | |||||||
Revenues | |||||||
Total revenues | $ 457,192 | $ 500,327 | $ 526,199 | ||||
Wireline Service | |||||||
Revenues | |||||||
Total revenues | 69,317 | 61,804 | 57,131 | ||||
Equipment Sales | |||||||
Revenues | |||||||
Total revenues | 157,506 | 221,610 | 178,836 | ||||
Non-subscriber ILD and other Revenues | |||||||
Revenues | |||||||
Total revenues | 9,912 | $ 14,434 | $ 16,734 | ||||
Previous Revenue Standard | |||||||
Assets | |||||||
EIP receivables, net | 29,128 | 22,165 | |||||
Prepaid expenses and other current assets | 13,219 | 12,609 | |||||
Deferred income taxes | 78,032 | 10,746 | |||||
Other assets | 25,054 | 23,648 | |||||
Liabilities and Shareholders' Deficit | |||||||
Customer deposits and unearned revenue | 17,262 | 16,995 | |||||
Other current liabilities and accrued expenses | 122,753 | 143,435 | |||||
Total shareholders' deficit | (20,606) | (33,616) | |||||
Revenues | |||||||
Total revenues | 694,860 | ||||||
Operating expenses | |||||||
Cost of equipment sales | 164,508 | ||||||
Sales and marketing | 95,744 | ||||||
Other operating expenses | 417,584 | ||||||
Total operating expenses | 677,836 | ||||||
Operating income | 17,024 | ||||||
Other Income and Expenses [Abstract] | |||||||
Other expenses, net | (45,432) | ||||||
Income tax benefit | 44,120 | ||||||
Net income (loss) | 15,712 | ||||||
Less: Net income attributable to noncontrolling interests | (17,002) | ||||||
Net income (loss) attributable to Trilogy International Partners Inc. | $ (1,290) | ||||||
Net (loss) income attributable to Trilogy International Partners Inc. per share: | |||||||
Basic | $ (0.02) | ||||||
Diluted | $ (0.02) | ||||||
Previous Revenue Standard | Wireless Service | |||||||
Revenues | |||||||
Total revenues | $ 461,734 | ||||||
Previous Revenue Standard | Wireline Service | |||||||
Revenues | |||||||
Total revenues | 69,481 | ||||||
Previous Revenue Standard | Equipment Sales | |||||||
Revenues | |||||||
Total revenues | 153,256 | ||||||
Previous Revenue Standard | Non-subscriber ILD and other Revenues | |||||||
Revenues | |||||||
Total revenues | 10,389 | ||||||
Impact of Adoption | |||||||
Assets | |||||||
EIP receivables, net | 2,622 | 256 | |||||
Prepaid expenses and other current assets | 12,350 | 7,661 | |||||
Deferred income taxes | (4,816) | (1,431) | |||||
Other assets | 6,492 | 620 | |||||
Liabilities and Shareholders' Deficit | |||||||
Customer deposits and unearned revenue | 2,975 | 1,971 | |||||
Other current liabilities and accrued expenses | 859 | 750 | |||||
Total shareholders' deficit | 12,814 | $ 4,385 | |||||
Revenues | |||||||
Total revenues | (933) | ||||||
Operating expenses | |||||||
Cost of equipment sales | 35 | ||||||
Sales and marketing | (12,602) | ||||||
Total operating expenses | (12,567) | ||||||
Operating income | 11,634 | ||||||
Other Income and Expenses [Abstract] | |||||||
Income tax benefit | (3,324) | ||||||
Net income (loss) | 8,310 | ||||||
Less: Net income attributable to noncontrolling interests | (4,142) | ||||||
Net income (loss) attributable to Trilogy International Partners Inc. | $ 4,168 | ||||||
Net (loss) income attributable to Trilogy International Partners Inc. per share: | |||||||
Basic | $ 0.07 | ||||||
Diluted | $ 0.07 | ||||||
Impact of Adoption | Wireless Service | |||||||
Revenues | |||||||
Total revenues | $ (4,542) | ||||||
Impact of Adoption | Wireline Service | |||||||
Revenues | |||||||
Total revenues | (164) | ||||||
Impact of Adoption | Equipment Sales | |||||||
Revenues | |||||||
Total revenues | 4,250 | ||||||
Impact of Adoption | Non-subscriber ILD and other Revenues | |||||||
Revenues | |||||||
Total revenues | $ (477) | ||||||
[1] | For the period from February 7, 2017 through December 31, 2017 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,068,764 | $ 1,015,808 |
Less: accumulated depreciation | (689,903) | (620,967) |
Property and equipment, net | 378,861 | 394,841 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,391 | 9,187 |
Wireless communication systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 811,344 | 785,548 |
Furniture, equipment, vehicles and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 196,215 | 176,267 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 51,814 | $ 44,806 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019USD ($)Tower | Aug. 31, 2019USD ($)Tower | Feb. 28, 2019USD ($)Tower | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)Tower | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |||||||
Depreciation expense | $ 92,600 | $ 93,100 | $ 88,100 | ||||
Assets, net of accumulated depreciation, related to AROs | $ 6,000 | 6,000 | 6,900 | ||||
Property and equipment acquired through current and long-term debt | 2,800 | 1,600 | 1,900 | ||||
Net change in current and long-term construction accounts payable resulted in additions or (adjustments) to Purchase of property and equipment | 4,800 | (1,400) | (12,800) | ||||
Proceeds from sale lease back transaction | 70,586 | ||||||
Proceeds from sale-leaseback financing obligation | 18,945 | ||||||
Gain loss on disposal of assets and sale-leaseback transaction | 11,169 | $ (1,346) | $ (682) | ||||
Deferred gain | 49,114 | 49,114 | |||||
Nueva Tel | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from sale lease back transaction | 89,500 | ||||||
Sale lease back transaction estimated net cash proceeds | $ 100,000 | ||||||
Proceeds from sale-leaseback financing obligation | 18,900 | ||||||
Deferred gain gross | $ 58,900 | 58,900 | |||||
Deferred gain current portion | $ 3,900 | ||||||
Lease term | 10 years | 10 years | |||||
Lease term description | The tower sites have an initial lease term of 10 years with up to three five year renewal terms at NuevaTel's option. | ||||||
Annual base operating lease rental obligation | $ 8,500 | $ 8,500 | |||||
Annual base capital lease rental obligation | 200 | 200 | |||||
Annual base payments for tower financing obligations not qualified for sale-leaseback accounting | 2,200 | $ 2,200 | |||||
Percenatge Increase Of Annual Lease Rental | 3.00% | ||||||
Gross rent expense | $ 6,000 | ||||||
Nueva Tel | Up to three | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Maximum number of lease renewal periods | 3 years | ||||||
Nueva Tel | Maximum | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of network towers available for sale under sale and lease back transaction | Tower | 651 | ||||||
Nueva Tel | Bolivian | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Income tax on Deferred gain | 18,200 | $ 18,200 | |||||
Nueva Tel | General and Administrative Expenses | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Bank fees | $ 1,300 | ||||||
Sale lease back transaction tax | 3,100 | ||||||
Nueva Tel | Other Current Liabilities | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Deferred gain | 5,900 | 5,900 | |||||
Nueva Tel | Property, Plant and Equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Assets classified as held for sale | 700 | 700 | |||||
Nueva Tel | Other non-current liabilities | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Asset retirement obligations | 300 | 300 | |||||
Nueva Tel | Capital Lease | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Deferred gain gross | 1,000 | $ 1,000 | |||||
Nueva Tel | Tranche One | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from sale lease back transaction | $ 64,300 | ||||||
Number of network towers covered under sale and lease back transaction | Tower | 400 | ||||||
Gain loss on disposal of assets and sale-leaseback transaction | $ 7,000 | ||||||
Nueva Tel | Tranche Two | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from sale lease back transaction | $ 20,200 | ||||||
Number of network towers covered under sale and lease back transaction | Tower | 143 | ||||||
Gain loss on disposal of assets and sale-leaseback transaction | $ 2,600 | ||||||
Nueva Tel | Tranche Three | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Proceeds from sale lease back transaction | $ 5,000 | ||||||
Number of network towers covered under sale and lease back transaction | Tower | 31 | 31 | |||||
Gain loss on disposal of assets and sale-leaseback transaction | $ 500 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Other Assets - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets | ||
Property, Plant and Equipment [Line Items] | ||
Advances to equipment vendors | $ 4 | $ 4.9 |
Property, Plant and Equipment_4
Property, Plant and Equipment - Activity in AROs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Beginning balance | $ 21,689 | $ 19,878 |
Revisions in estimated cash flows | 17 | 296 |
Additional accruals | 1,026 | 799 |
Foreign currency translation | 119 | (799) |
Accretion | 1,420 | 1,623 |
Disposals | (3,300) | (108) |
Ending balance | $ 20,971 | $ 21,689 |
Summary of Changes in Goodwill
Summary of Changes in Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 9,014 | $ 9,539 |
Foreign currency adjustment | 32 | (525) |
Balance at the end of the year | $ 9,046 | $ 9,014 |
Goodwill, License Cost and Othe
Goodwill, License Cost and Other Intangible Assets - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019NZD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018NZD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017NZD ($) | Oct. 29, 2013NZD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Accumulated goodwill impairments | $ 0 | $ 0 | ||||||
Amortization expense | 15,800,000 | $ 17,200,000 | 17,800,000 | |||||
Trilogy International Radio Spectrum , LLC | 700 MHz License | New Zealand | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
License purchase price on agreement date | 29,600,000 | $ 44 | ||||||
Trilogy International Radio Spectrum , LLC | 700 MHz License | New Zealand | License Obligation | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Payment of debt | $ 6,800,000 | $ 10.3 | 7,000,000 | $ 10.3 | 14,500,000 | $ 20.8 | ||
Stated interest rate | 5.80% | |||||||
Payment of interest | $ 400,000 | $ 700,000 | $ 4,100,000 | |||||
Nueva Tel | 1900 MHz [Member] | Bolivia | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Payment for license fee | $ 30,200,000 | |||||||
License agreement expiration year | 2034 |
License costs and other intangi
License costs and other intangible assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 234,604 | $ 203,498 |
Accumulated Amortization | (138,812) | (122,511) |
Total | 95,792 | 80,987 |
License costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 218,473 | 187,415 |
Accumulated Amortization | (124,105) | (109,402) |
Total | $ 94,368 | 78,013 |
Subscriber relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 7 years | |
Gross Amount | $ 12,589 | 12,546 |
Accumulated Amortization | (11,165) | (9,670) |
Total | 1,424 | 2,876 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,542 | 3,537 |
Accumulated Amortization | (3,542) | (3,439) |
Total | $ 0 | $ 98 |
Minimum | License costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 7 years | |
Minimum | Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 6 years | |
Maximum | License costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 20 years | |
Maximum | Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 14 years |
Estimated Future Amortization E
Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 12,053 | |
2021 | 8,732 | |
2022 | 7,596 | |
2023 | 7,297 | |
2024 | 7,297 | |
Thereafter | 52,817 | |
Total | $ 95,792 | $ 80,987 |
EIP Receivables - Additional In
EIP Receivables - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
EIP receivables, gross amount | $ 76,697 | $ 50,072 | |
Unbilled EIP receivables | 31,750 | 22,165 | $ 22,421 |
Unbilled EIP receivables long term | 35,760 | 21,216 | |
Nueva Tel | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
EIP receivables, gross amount | $ 4,200 | $ 2,100 | |
Nueva Tel | Bolivia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment period for certain wireless subscribers | 18 months | ||
2degrees | Securitized receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unbilled EIP receivables | $ 10,700 | ||
Unbilled EIP receivables long term | 11,000 | ||
2degrees | Collateral Pledged [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Outstanding financing obligation | $ 16,400 | ||
Weighted Average | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
EIP receivables weighted average imputed interest rates | 7.44% | 6.63% | |
Maximum [Member] | 2degrees | New Zealand | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment period for certain wireless subscribers | 36 months |
EIP Receivables - Summary of EI
EIP Receivables - Summary of EIP Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Receivable Financing [Abstract] | ||||
EIP receivables, gross | $ 76,697 | $ 50,072 | ||
Unamortized imputed discount | (4,335) | (3,784) | ||
EIP receivables, net of unamortized imputed discount | 72,362 | 46,288 | ||
Allowance for doubtful accounts | (4,852) | (2,907) | ||
EIP receivables, net | 67,510 | 43,381 | $ 31,989 | |
EIP receivables, current net | 31,750 | $ 22,421 | 22,165 | |
Long-term EIP receivables | 35,760 | 21,216 | ||
EIP receivables, net | $ 67,510 | $ 43,381 | $ 31,989 |
EIP Receivables - Gross EIP Rec
EIP Receivables - Gross EIP Receivables by Credit Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total EIP receivables, gross | $ 76,697 | $ 50,072 |
Prime | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total EIP receivables, gross | 55,764 | 33,161 |
Subprime | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total EIP receivables, gross | $ 20,933 | $ 16,911 |
EIP Receivables - Changes in Ag
EIP Receivables - Changes in Aggregate Net Carrying Amount of Unbilled EIP Receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, after Allowance for Credit Loss [Abstract] | ||
Beginning balance | $ 43,381 | $ 31,989 |
Additions | 99,394 | 111,028 |
Billings and payments | (50,579) | (42,671) |
Sales of EIP receivables | (23,276) | (52,308) |
Foreign currency translation | 1,086 | (2,288) |
Change in allowance for doubtful accounts and imputed discount | (2,496) | (2,369) |
Ending balance | $ 67,510 | $ 43,381 |
EIP Receivables - Summary of Im
EIP Receivables - Summary of Impact of Sales of EIP receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivable [Line Items] | ||
EIP receivables derecognized | $ 23,276 | $ 52,308 |
Cash proceeds | (20,313) | (44,792) |
Reversal of unamortized imputed discount | (1,773) | (3,941) |
Reversal of allowance for doubtful accounts | (1,397) | (2,396) |
Pre-tax (gain) loss on sales of EIP receivables | $ (207) | $ 1,179 |
Other Current Liabilities and_3
Other Current Liabilities and Accrued Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other Current Liabilities and Accrued Expense [Line Items] | |||
Payroll and employee benefits | $ 17,538 | $ 16,587 | |
Income and withholding taxes | 17,169 | 3,087 | |
Handset purchases | 16,746 | 37,405 | |
Value-added tax and other business taxes | 12,452 | 13,990 | |
Dealer commissions and subsidies | 11,484 | 13,411 | |
Interconnection and roaming charges payable | 8,798 | 13,017 | |
Other | 39,425 | 45,938 | |
Other current liabilities and accrued expenses | $ 123,612 | $ 144,185 | $ 143,435 |
Schedule of Assets and Liabilit
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 2,703 | |
Total liabilities | $ 2,739 | 1,928 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,986 | |
Forward exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 717 | |
Total liabilities | 336 | |
Warrant Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 107 | 99 |
Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 2,296 | 1,829 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 107 | 99 |
Fair Value, Inputs, Level 1 | Warrant Liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | 107 | 99 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 2,703 | |
Total liabilities | 2,632 | 1,829 |
Fair Value, Inputs, Level 2 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,986 | |
Fair Value, Inputs, Level 2 | Forward exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 717 | |
Total liabilities | 336 | |
Fair Value, Inputs, Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities | $ 2,296 | $ 1,829 |
Summary of Carrying Amounts and
Summary of Carrying Amounts and Estimated Fair Values of Total Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Carrying amount, excluding unamortized discount and deferred financing costs | $ 568,419 | $ 516,490 |
Fair value | $ 546,301 | $ 503,748 |
Schedule of Long-Term and Other
Schedule of Long-Term and Other Debt (Detail) $ in Thousands, $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019NZD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||
Carrying amount, excluding unamortized discount and deferred financing costs | $ 568,419 | $ 516,490 | |
Less: deferred financing costs | (5,189) | (6,848) | |
Less: unamortized discount | (2,064) | (2,817) | |
Total debt | 561,166 | 506,825 | |
Less: current portion of debt | (32,428) | (8,293) | |
Total long-term debt | 528,738 | 498,532 | |
Triology LLC Due 2022 Notes | Trilogy LLC | |||
Debt Instrument [Line Items] | |||
Carrying amount, excluding unamortized discount and deferred financing costs | 350,000 | 350,000 | |
Other | |||
Debt Instrument [Line Items] | |||
Carrying amount, excluding unamortized discount and deferred financing costs | 8,027 | 2,914 | |
New Zealand | 2021 Senior Facilities Agreement | |||
Debt Instrument [Line Items] | |||
Carrying amount, excluding unamortized discount and deferred financing costs | 154,887 | 137,554 | |
New Zealand | 2021 Senior Facilities Agreement | 2degrees | |||
Debt Instrument [Line Items] | |||
Less: deferred financing costs | (2,100) | $ (2.8) | |
New Zealand | EIP Receivables Financing Obligation | 2degrees | |||
Debt Instrument [Line Items] | |||
Carrying amount, excluding unamortized discount and deferred financing costs | 16,372 | 24.3 | |
Less: deferred financing costs | (400) | $ (0.7) | |
Bolivia | Tower Transaction Financing Obligation | Nueva Tel | |||
Debt Instrument [Line Items] | |||
Carrying amount, excluding unamortized discount and deferred financing costs | 16,757 | ||
Less: current portion of debt | (1,000) | ||
Total long-term debt | 15,800 | ||
Bolivia | Syndicated Loan 2021 | |||
Debt Instrument [Line Items] | |||
Carrying amount, excluding unamortized discount and deferred financing costs | 10,015 | 15,022 | |
Bolivia | Syndicated Loan 2021 | Nueva Tel | |||
Debt Instrument [Line Items] | |||
Less: current portion of debt | (6,700) | ||
Total long-term debt | 3,300 | ||
Bolivia | Bank Loan 2022 | Nueva Tel | |||
Debt Instrument [Line Items] | |||
Carrying amount, excluding unamortized discount and deferred financing costs | 5,249 | 7,000 | |
Less: current portion of debt | (1,800) | ||
Total long-term debt | 3,500 | ||
Bolivia | Bank Loan 2023 | Nueva Tel | |||
Debt Instrument [Line Items] | |||
Carrying amount, excluding unamortized discount and deferred financing costs | 7,112 | $ 4,000 | |
Less: current portion of debt | (1,800) | ||
Total long-term debt | $ 5,300 |
Future maturities of Long-term
Future maturities of Long-term and other debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2020 | $ 32,428 | |
2021 | 164,086 | |
2022 | 355,491 | |
2023 | 3,452 | |
2024 | 1,809 | |
Thereafter | 11,153 | |
Total | $ 568,419 | $ 516,490 |
Debt - Additional Information (
Debt - Additional Information (Detail) | May 02, 2017USD ($) | Jan. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2019USD ($)Tower | Dec. 31, 2019NZD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019NZD ($)Tower | Feb. 28, 2019Tower | Sep. 30, 2018USD ($) | Sep. 30, 2018NZD ($) | Apr. 30, 2016USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Repayment of debt | $ 201,480,000 | $ 338,769,000 | $ 613,487,000 | ||||||||||
Debt modification and extinguishment costs | (4,192,000) | (6,689,000) | |||||||||||
Deferred financing costs | $ 6,848,000 | 5,189,000 | 6,848,000 | ||||||||||
Debt, current | 8,293,000 | 32,428,000 | 8,293,000 | ||||||||||
Debt, noncurrent | 498,532,000 | 528,738,000 | 498,532,000 | ||||||||||
Proceeds from debt | 214,471,000 | 343,723,000 | 514,485,000 | ||||||||||
Interest cost incurred and expensed | $ 47,100,000 | 47,100,000 | 60,800,000 | ||||||||||
Debt covenant compliance | the Company was in compliance with all of its debt covenants. | the Company was in compliance with all of its debt covenants. | |||||||||||
Proceeds from sale-leaseback financing obligation | $ 18,945,000 | ||||||||||||
Long-term Debt | 516,490,000 | 568,419,000 | 516,490,000 | ||||||||||
Interest Expense | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of deferred financing costs | 2,100,000 | 2,500,000 | $ 2,600,000 | ||||||||||
Nueva Tel | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from sale-leaseback financing obligation | $ 18,900,000 | ||||||||||||
Maximum | Nueva Tel | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of network towers available for sale under sale and lease back transaction | Tower | 651 | ||||||||||||
Triology LLC Due 2022 Notes | Trilogy LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount of notes | $ 350,000,000 | ||||||||||||
Deferred financing cost | 4,800,000 | ||||||||||||
Financing expenses | 4,300,000 | ||||||||||||
Debt modification and extinguishment costs | $ 2,400,000 | ||||||||||||
Debt stated interest rate | 8.875% | 8.875% | |||||||||||
Notes issued, percentage of face value | 99.506% | 99.506% | |||||||||||
Interest payment | semi-annually in arrears on May 1 and November 1 | semi-annually in arrears on May 1 and November 1 | |||||||||||
Maturity date | May 1, 2022 | May 1, 2022 | |||||||||||
Redemption option, description | Trilogy LLC has the option of redeeming the Trilogy LLC 2022 Notes, in whole or in part, upon not less than 30 days’ and not more than 60 days’ prior notice | Trilogy LLC has the option of redeeming the Trilogy LLC 2022 Notes, in whole or in part, upon not less than 30 days’ and not more than 60 days’ prior notice | |||||||||||
Long-term Debt | 350,000,000 | $ 350,000,000 | 350,000,000 | ||||||||||
Triology LLC Due 2022 Notes | On or after May 1, 2019 but prior to May 1, 2020 | Trilogy LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Redemption Price, Percentage | 104.438% | 104.438% | |||||||||||
Triology LLC Due 2022 Notes | On or after May 1, 2020 but prior to May 1, 2021 | Trilogy LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Redemption Price, Percentage | 102.219% | 102.219% | |||||||||||
Triology LLC Due 2022 Notes | On or after May 1, 2021 | Trilogy LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | 100.00% | |||||||||||
Syndicated Loan 2021 | Bolivia | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | 15,022,000 | $ 10,015,000 | 15,022,000 | ||||||||||
Syndicated Loan 2021 | Bolivia | Nueva Tel | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount of notes | $ 25,000,000 | ||||||||||||
Debt stated interest rate | 8.12% | 8.12% | |||||||||||
Debt, current | $ 6,700,000 | ||||||||||||
Debt, noncurrent | $ 3,300,000 | ||||||||||||
Financial covenant requirement | Maintain an indebtedness ratio (as defined in the Bolivian 2021 Syndicated Loan agreement) of not greater than 2.15; a debt coverage ratio (as defined in the Bolivian 2021 Syndicated Loan agreement) of not less than 1.25; a current ratio (as defined in the Bolivian 2021 Syndicated Loan agreement) of not less than 0.65; and a structural debt ratio (as defined in the Bolivian 2021 Syndicated Loan agreement) of not higher than 3.0. | Maintain an indebtedness ratio (as defined in the Bolivian 2021 Syndicated Loan agreement) of not greater than 2.15; a debt coverage ratio (as defined in the Bolivian 2021 Syndicated Loan agreement) of not less than 1.25; a current ratio (as defined in the Bolivian 2021 Syndicated Loan agreement) of not less than 0.65; and a structural debt ratio (as defined in the Bolivian 2021 Syndicated Loan agreement) of not higher than 3.0. | |||||||||||
Maximum net indebteness ratio | 215.00% | 215.00% | |||||||||||
Minimum net debt coverage ratio | 125.00% | 125.00% | |||||||||||
Minimum net current ratio | 65.00% | 65.00% | |||||||||||
Maximum net structural debt ratio | 300.00% | 300.00% | |||||||||||
Syndicated Loan 2021 | Bolivia | Nueva Tel | Each of the first two years of the loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt repayment percentage | 10.00% | 10.00% | |||||||||||
Syndicated Loan 2021 | Bolivia | Nueva Tel | Each of the final three years of the loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt repayment percentage | 26.67% | 26.67% | |||||||||||
Syndicated Loan 2021 | Bolivia | Nueva Tel | Tasa De Referencia | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable interest rate | 5.50% | 5.50% | |||||||||||
Triology LLC Due 2019 Notes | Trilogy LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of debt | 450,000,000 | ||||||||||||
Payment of fees and expenses | $ 9,100,000 | ||||||||||||
2021 Senior Facilities Agreement | New Zealand | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt | 137,554,000 | $ 154,887,000 | 137,554,000 | ||||||||||
2021 Senior Facilities Agreement | New Zealand | 2degrees | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Deferred financing cost | 5,700,000 | $ 8,400,000 | |||||||||||
Debt modification and extinguishment costs | 3,700,000 | $ 5,600,000 | |||||||||||
Borrowing capacity | $ 168,400,000 | $ 250,000,000 | |||||||||||
Credit facilities agreement maturity date | Jul. 31, 2021 | Jul. 31, 2021 | |||||||||||
Debt weighted average interest rate | 3.63% | 3.63% | |||||||||||
Commitment fee rate | 0.96% | 0.96% | |||||||||||
Commitment fee as a rate of the applicable margin on all undrawn and available commitments | 40.00% | 40.00% | |||||||||||
Financial covenant requirement | maintain a total interest coverage ratio (as defined in the New Zealand 2021 Senior Facilities Agreement) of not less than 3.0; maintain a net leverage ratio (as defined in the New Zealand 2021 Senior Facilities Agreement) of not greater than 2.75 from July 1, 2019 to June 30, 2020; and 2.50 thereafter; and not exceed 110% of the agreed to annual capital expenditures (as defined in the New Zealand 2021 Senior Facilities Agreement) in any financial year. | maintain a total interest coverage ratio (as defined in the New Zealand 2021 Senior Facilities Agreement) of not less than 3.0; maintain a net leverage ratio (as defined in the New Zealand 2021 Senior Facilities Agreement) of not greater than 2.75 from July 1, 2019 to June 30, 2020; and 2.50 thereafter; and not exceed 110% of the agreed to annual capital expenditures (as defined in the New Zealand 2021 Senior Facilities Agreement) in any financial year. | |||||||||||
Deferred financing costs | $ 2,100,000 | $ 2,800,000 | |||||||||||
2021 Senior Facilities Agreement | New Zealand | 2degrees | On or after July, 2018 but prior to June, 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest coverage ratio, minimum | 300.00% | 300.00% | |||||||||||
2021 Senior Facilities Agreement | New Zealand | 2degrees | On or after July 1, 2019 but prior to June 30, 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum net leverage ratio | 275.00% | 275.00% | |||||||||||
2021 Senior Facilities Agreement | New Zealand | 2degrees | On July 1, 2020 and Thereafter | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum net leverage ratio | 250.00% | 250.00% | |||||||||||
2021 Senior Facilities Agreement | New Zealand | 2degrees | Working Capital Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowing capacity | $ 20,000,000 | ||||||||||||
2021 Senior Facilities Agreement | New Zealand | 2degrees | Further investments | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowing capacity | 35,000,000 | ||||||||||||
Credit facility drawn | $ 23,600,000 | 35,000,000 | |||||||||||
2021 Senior Facilities Agreement | New Zealand | 2degrees | Line Of Credit Available For Refinancing An Older Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowing capacity | 195,000,000 | ||||||||||||
Credit facility drawn | $ 131,300,000 | 195,000,000 | |||||||||||
2021 Senior Facilities Agreement | New Zealand | Trilogy LLC | Line Of Credit Available For Refinancing An Older Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Deferred financing costs | $ 500,000 | $ 700,000 | |||||||||||
2021 Senior Facilities Agreement | New Zealand | Trilogy LLC | Capital Expenditures | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowing capacity | $ 35,000,000 | ||||||||||||
2021 Senior Facilities Agreement | New Zealand | Maximum | 2degrees | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amount by which annual capital expenditures may not exceed the agreed upon amount | 110.00% | 110.00% | |||||||||||
2021 Senior Facilities Agreement | New Zealand | Maximum | 2degrees | New Zealand Bank Bill Reference Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable interest rate | 3.80% | 3.80% | |||||||||||
2021 Senior Facilities Agreement | New Zealand | Minimum | 2degrees | New Zealand Bank Bill Reference Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable interest rate | 2.40% | 2.40% | |||||||||||
2019 Senior Facilities Agreement | New Zealand | 2degrees | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowing capacity | $ 200,000,000 | ||||||||||||
Bank Loan 2022 | Bolivia | Nueva Tel | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount of notes | $ 7,000,000 | ||||||||||||
Debt stated interest rate | 6.00% | 6.00% | |||||||||||
Debt, current | $ 1,800,000 | ||||||||||||
Debt, noncurrent | $ 3,500,000 | ||||||||||||
Debt repayment terms | The Bolivian 2022 Bank Loan is required to be repaid in quarterly installments which commenced in 2019 through 2022, with 25% of the principal amount to be repaid each year. | The Bolivian 2022 Bank Loan is required to be repaid in quarterly installments which commenced in 2019 through 2022, with 25% of the principal amount to be repaid each year. | |||||||||||
Long-term Debt | 7,000,000 | $ 5,249,000 | 7,000,000 | ||||||||||
Bank Loan 2022 | Bolivia | Nueva Tel | Annual payment required during the last four years | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt repayment percentage | 25.00% | 25.00% | |||||||||||
Bank Loan 2023 | Bolivia | Nueva Tel | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount of notes | $ 8,000,000 | ||||||||||||
Debt, current | 1,800,000 | ||||||||||||
Debt, noncurrent | $ 5,300,000 | ||||||||||||
Debt repayment terms | The Bolivian 2023 Bank Loan is required to be repaid in quarterly installments which commenced in September 2019 through 2023, with 11% of the principal amount to be repaid during the first year and 22.25% of the principal amount to be repaid during each of the final four years. | The Bolivian 2023 Bank Loan is required to be repaid in quarterly installments which commenced in September 2019 through 2023, with 11% of the principal amount to be repaid during the first year and 22.25% of the principal amount to be repaid during each of the final four years. | |||||||||||
Proceeds from debt | $ 4,000,000 | 4,000,000 | |||||||||||
Long-term Debt | $ 4,000,000 | $ 7,112,000 | $ 4,000,000 | ||||||||||
Bank Loan 2023 | Bolivia | Nueva Tel | Each of the final four years | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt repayment percentage | 22.25% | 22.25% | |||||||||||
Bank Loan 2023 | Bolivia | Nueva Tel | The First Year | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt repayment percentage | 11.00% | 11.00% | |||||||||||
Bank Loan 2023 | Bolivia | Nueva Tel | First 24 Months | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fixed rate on debt | 7.00% | 7.00% | |||||||||||
Bank Loan 2023 | Bolivia | Nueva Tel | Tasa De Referencia | After First 24 Months | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable interest rate | 5.00% | 5.00% | |||||||||||
Tower Transaction Financing Obligation | Bolivia | Nueva Tel | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, current | $ 1,000,000 | ||||||||||||
Debt, noncurrent | $ 15,800,000 | ||||||||||||
Number of network towers covered under sale and lease back transaction | Tower | 574 | 574 | |||||||||||
Proceeds from sale-leaseback financing obligation | $ 18,900,000 | ||||||||||||
Net consideration in sale lease back transaction | 89,500,000 | ||||||||||||
Long-term Debt | 16,757,000 | ||||||||||||
Debt instrument excluded for debt covenant | 12,100,000 | ||||||||||||
Tower Transaction Financing Obligation | Bolivia | Maximum | Nueva Tel | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of network towers available for sale under sale and lease back transaction | Tower | 651 | ||||||||||||
EIP Receivables Financing Obligation | New Zealand | 2degrees | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowing capacity | $ 23,900,000 | $ 35,500,000 | |||||||||||
Variable interest rate | 3.50% | 3.50% | |||||||||||
Debt weighted average interest rate | 4.84% | 4.84% | |||||||||||
Commitment fee rate | 0.65% | 0.65% | |||||||||||
Deferred financing costs | $ 400,000 | $ 700,000 | |||||||||||
Long-term Debt | 16,372,000 | 24,300,000 | |||||||||||
Unused capacity | $ 7,500,000 | $ 11,200,000 | |||||||||||
Description of variable rate | BKBM plus a margin of 3.50% | BKBM plus a margin of 3.50% |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosure (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid, net of capitalized interest | $ 42,623 | $ 43,650 | $ 61,598 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - 2degrees | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019NZD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019NZD ($) | |
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Matured derivative notional amount | $ 26,900,000 | $ 40,000,000 | |||
Derivative description | The agreements have effective dates from June 30, 2017 through June 30, 2021 and termination dates from March 31, 2020 to June 28, 2024 | The agreements have effective dates from June 30, 2017 through June 30, 2021 and termination dates from March 31, 2020 to June 28, 2024 | |||
Derivative, notional amount | $ 133,000,000 | $ 197,500,000 | |||
Interest Rate Swap | Other non-current liabilities | |||||
Derivative [Line Items] | |||||
Derivative liability, interest rate, fair value | $ 2.3 | $ 1.8 | |||
Interest Rate Swap | Minimum | |||||
Derivative [Line Items] | |||||
Derivative, fixed interest rate | 1.385% | 1.385% | |||
Interest Rate Swap | Maximum | |||||
Derivative [Line Items] | |||||
Derivative, fixed interest rate | 3.74% | 3.74% | |||
Foreign Exchange Contract | Other, net | |||||
Derivative [Line Items] | |||||
Foreign exchange gain (loss) recognized in other, net | $ (1,000,000) | $ 800,000 | $ (1,100,000) | ||
Foreign Exchange Contract | Sell NZD | |||||
Derivative [Line Items] | |||||
Matured derivative notional amount | $ 78,400,000 | ||||
Short-term forward exchange contracts to sell and buy currencies | $ 22,000,000 | ||||
Foreign Exchange Contract | Sell US Dollar | |||||
Derivative [Line Items] | |||||
Matured derivative notional amount | 2,000,000 | ||||
Foreign Exchange Contract | Buy US Dollar | |||||
Derivative [Line Items] | |||||
Matured derivative notional amount | 53,500,000 | ||||
Short-term forward exchange contracts to sell and buy currencies | $ 14,500,000 | ||||
Foreign Exchange Contract | Buy NZD | |||||
Derivative [Line Items] | |||||
Matured derivative notional amount | $ 3,000,000 |
Summarized Financial Informatio
Summarized Financial Information of Derivative Financial Instruments (Detail) - Interest Rate Swap - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Non-cash loss from change in fair value recorded in Other, net | $ (1,538) | $ (1,362) | $ (1,503) |
Loss reclassified from comprehensive loss to Other, net | (118) | ||
Net cash settlement | $ (1,054) | $ (1,371) | $ (1,602) |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Jun. 30, 2018 | Jul. 31, 2019 | Jan. 31, 2019 | Jul. 31, 2018 | Sep. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Equity-based compensation | $ 0.2 | $ 2.1 | $ 0.8 | |||||||||||
Class C Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share based compensation expense | $ 0.4 | $ 0.4 | 0.4 | |||||||||||
2degrees | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Weighted-average period to recognize award | 2 years 4 months 24 days | |||||||||||||
Options outstanding | 26,575,000 | 26,475,000 | ||||||||||||
Service-based share options, granted | 1,300,000 | 1,300,000 | [1] | |||||||||||
Weighted-average grant date fair value of option granted | $ 0.42 | $ 0.24 | ||||||||||||
Total intrinsic value of options redeemed or exercised | $ 0.5 | $ 0.2 | 3.2 | |||||||||||
Unrecognized compensation costs, option | $ 0.5 | |||||||||||||
Employee Stock Option | 2degrees | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share based payment award, vesting period | 3 years | |||||||||||||
Share based payment award, requisite service period | 3 years | |||||||||||||
Options with terms modified during the period, number | 9,800,000 | 9,800,000 | ||||||||||||
Expiration date after modification | May 31, 2021 | |||||||||||||
Earliest expiration date before modification | 2018 | |||||||||||||
Latest expiration date before modification | 2020 | |||||||||||||
Employee Stock Option | General and administrative | 2degrees | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Additional equity based compensation expense | $ 0.7 | |||||||||||||
Restricted Stock Units (RSUs) | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Percentage of Common Shares and Class C Units authorized for issuance as RSUs | 7.50% | |||||||||||||
Maximum number of Common Shares that may be issued under the plan | 6,362,485 | |||||||||||||
Share based payment award, restricted stock grant date fair value | $ 2.4 | $ 4.2 | $ 9.8 | |||||||||||
Share based payment award, restricted stock grant date price per common share | $ 1.57 | $ 4.20 | $ 6.94 | |||||||||||
Restricted stock units vested | 446,728 | |||||||||||||
Outstanding unvested RSUs | 2,490,277 | 1,385,255 | ||||||||||||
Unrecognized compensation costs, RSUs | $ 5.1 | |||||||||||||
Weighted-average period to recognize award | 2 years 2 months 12 days | |||||||||||||
Share based payment award, restricted stock unit granted | 1,500,000 | |||||||||||||
Restricted Stock Units (RSUs) | Grants Made in 2019 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Unrecognized compensation costs, RSUs | $ 1.8 | |||||||||||||
Restricted Stock Units (RSUs) | Time Based Restricted Stock | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Restricted stock units vested | 275,001 | 171,727 | 403,118 | |||||||||||
Issuance of shares related to RSUs, net of employee tax withholding | 241,645 | 133,021 | 357,684 | |||||||||||
Restricted Stock Units (RSUs) | Performance Based Restricted Stock | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share based payment award, vesting period description | These performance-based RSUs vest on a straight-line basis over a four-year period, subject to continued service through the applicable vesting dates. | |||||||||||||
Restricted Stock Units (RSUs) | Class C Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share based payment award, vesting period | 4 years | |||||||||||||
Share based payment award, vesting period description | The Restricted Class C Units vest over 4 years, with one-fourth of the award vesting on the day following each anniversary date of the award based on the employee's continued service. There are no voting rights or rights to receive distributions prior to vesting for unvested Restricted Class C Units. | |||||||||||||
Share based payment award, restricted stock grant date fair value | $ 1.5 | |||||||||||||
Outstanding unvested RSUs | 96,065 | |||||||||||||
Unrecognized compensation costs, RSUs | $ 0.4 | |||||||||||||
Weighted-average period to recognize award | 1 year | |||||||||||||
Share based payment award, restricted stock unit granted | 192,130 | |||||||||||||
Restricted Stock Units (RSUs) | General and administrative | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share based compensation expense | $ 3.2 | $ 3.4 | $ 1.6 | |||||||||||
[1] | Exercise price of the options granted and forfeited are denominated in NZD and were translated into USD at the exchange rate on the grant date of the related options. |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at December 31, 2018 | 1,385,255 |
Granted | 1,500,000 |
Vested | (446,728) |
Outstanding at December 31, 2019 | 2,490,277 |
Performance Based Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance-based RSU adjustment | 51,750 |
Range of Assumptions Used to Va
Range of Assumptions Used to Value Options Granted (Detail) - 2degrees - Employee Stock Option | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 27.50% | 25.00% |
Expected term (in years) | 4 years 9 months 18 days | |
Risk free interest rate | 1.03% | |
Risk free interest rate, minimum | 1.99% | |
Risk free interest rate, maximum | 2.09% | |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 2 years 9 months | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 3 years 11 months 8 days |
Summary of Changes in Outstandi
Summary of Changes in Outstanding Options (Detail) - 2degrees - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, Outstanding at December 31, 2018 | 26,475,000 | |||
Options, Granted | 1,300,000 | 1,300,000 | [1] | |
Options, Forfeited | [1] | (250,000) | ||
Options, Redeemed | (950,000) | |||
Options, Outstanding at December 31, 2019 | 26,575,000 | |||
Options, Exercisable at December 31, 2019 | 25,275,000 | |||
Weighted- Average Exercise Price per Unit, Outstanding at December 31, 2018 | $ 1.45 | |||
Weighted- Average Exercise Price per Unit, Granted | [1] | 1.65 | ||
Weighted- Average Exercise Price per Unit, Forfeited | [1] | 1.90 | ||
Weighted- Average Exercise Price per Unit, Redeemed | 1.18 | |||
Weighted- Average Exercise Price per Unit, Outstanding at December 31, 2019 | 1.46 | |||
Weighted- Average Exercise Price per Unit, Exercisable at December 31, 2019 | $ 1.45 | |||
Weighted-Average Remaining Contractual Term (in Years), Outstanding at December 31, 2019 | 2 years 6 months | |||
Weighted-Average Remaining Contractual Term (in Years), Exercisable at December 31, 2019 | 2 years 2 months 12 days | |||
Aggregate Intrinsic Value, Outstanding at December 31, 2019 | $ 15,990 | |||
Aggregate Intrinsic Value, Exercisable at December 31, 2019 | $ 15,675 | |||
[1] | Exercise price of the options granted and forfeited are denominated in NZD and were translated into USD at the exchange rate on the grant date of the related options. |
Mezzanine Equity - Additional I
Mezzanine Equity - Additional Information (Detail) | Dec. 31, 2016shares |
Redeemable Class A Units | |
Temporary Equity [Line Items] | |
Total mezzanine equity, number of shares outstanding | 73,590 |
Summary of Redeemable Class A U
Summary of Redeemable Class A Units (Detail) - Redeemable Class A Units | Dec. 31, 2016shares |
Temporary Equity [Line Items] | |
Former Class A Units | 73,590 |
Redeemable Units Exercisable on July 30, 2014 | |
Temporary Equity [Line Items] | |
Former Class A Units | 48,590 |
Redeemable Units Exercisable on December 24, 2015 | |
Temporary Equity [Line Items] | |
Former Class A Units | 25,000 |
Equity - Additional Information
Equity - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2019USD ($)shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017$ / shares | Dec. 31, 2019$ / shares | Feb. 07, 2017shares | |
Class of Stock [Line Items] | ||||||||
Common Stock shares authorized, unlimited | Unlimited | Unlimited | ||||||
Common stock shares, outstanding | 58,451,931 | 58,451,931 | 57,713,836 | 57,713,836 | ||||
Increase (decrease) in issued common shares | 738,095 | |||||||
Common stock, voting rights | One vote for each share | |||||||
Number of shares under lock-up agreements | 0 | 5,748,383 | ||||||
Lock Up agreement expiration date | Feb. 7, 2019 | |||||||
Number of shares with expired lock-up period | 0 | 5,748,383 | ||||||
Special voting Share, voting right | One vote per Class C Unit held | |||||||
Special voting Share outstanding | 1 | 1 | ||||||
Special voting Share issued | 1 | 1 | ||||||
Special voting per share, dissolution right | $ / shares | $ 1 | |||||||
Warrants outstanding | 13,402,685 | 13,402,685 | 13,402,685 | |||||
Warrant exercise price | $ / shares | $ 11.50 | |||||||
Forfeiture date of common shares subject to forfeiture | Feb. 7, 2022 | |||||||
Common shares subject to forfeiture | 1,675,336 | 1,675,336 | ||||||
Minimum closing price of common shares subject to forfeiture | $ / shares | $ 13 | |||||||
Dividend paid per common share | $ / shares | $ 0.02 | $ 0.02 | $ 0.02 | |||||
Dividends payable, date to be Paid, Year | 2019 | 2019 | 2018 | 2018 | 2017 | 2017 | ||
Dividends payable, date Declared | Apr. 2, 2019 | Apr. 2, 2018 | Mar. 21, 2017 | |||||
Dividends payable, date of Record | Apr. 16, 2019 | Apr. 16, 2018 | Apr. 28, 2017 | |||||
Common Share issued through dividend reinvestment plan | 72,557 | 34,734 | 17,416 | |||||
Purchase price as a percentage of market price | 95.00% | |||||||
Cash dividend | $ | $ 8,437 | $ 7,573 | $ 537 | |||||
Restricted Stock Units (RSUs) | ||||||||
Class of Stock [Line Items] | ||||||||
Outstanding unvested RSUs | 2,490,277 | 2,490,277 | 1,385,255 | 1,385,255 | ||||
Trilogy LLC | ||||||||
Class of Stock [Line Items] | ||||||||
Increase in ownership percentage | 0.20% | |||||||
Trilogy LLC | Trilogy International Partners LLC | ||||||||
Class of Stock [Line Items] | ||||||||
Equity ownership percentage by parent | 68.90% | 68.90% | ||||||
Class C Units | Trilogy LLC | ||||||||
Class of Stock [Line Items] | ||||||||
Increase (decrease) in issued common shares | 37,298 | (3,320,504) | ||||||
Number of shares under lock-up agreements | 0 | |||||||
Lock Up agreement expiration date | Feb. 7, 2019 | |||||||
Number of shares with expired lock-up period | 8,677,753 | |||||||
Distribution in units | 259,760 | 137,256 | 85,663 | |||||
Common units outstanding | 26,381,206 | 26,381,206 | 26,343,909 | 26,343,909 | ||||
Class C Units | Trilogy LLC | Restricted Stock Units (RSUs) | ||||||||
Class of Stock [Line Items] | ||||||||
Outstanding unvested RSUs | 96,065 | 96,065 | 144,098 | 144,098 | ||||
Vesting period | 4 years | |||||||
Class A Units | Trilogy LLC | ||||||||
Class of Stock [Line Items] | ||||||||
Common units outstanding | 157,682,319 | 157,682,319 | ||||||
Class B Units | Trilogy LLC | ||||||||
Class of Stock [Line Items] | ||||||||
Increase (decrease) in issued common shares | 738,095 | 3,898,205 | ||||||
Common units outstanding | 58,451,931 | 58,451,931 | 57,713,836 | 57,713,836 | ||||
Shareholders that did not participate in the dividend reinvestment plan | ||||||||
Class of Stock [Line Items] | ||||||||
Cash dividend | $ | $ 800 | $ 700 | $ 500 | |||||
Other current liabilities and accrued expenses | Warrants | ||||||||
Class of Stock [Line Items] | ||||||||
Warrant liability | $ | $ 100 | $ 100 | $ 100 | $ 100 |
Revenue From Contract With Cust
Revenue From Contract With Customer - Summary of disaggregation of revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 693,927 | $ 798,175 | $ 778,900 |
Postpaid Wireless | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 251,754 | ||
Prepaid Wireless | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 191,601 | ||
Wireline Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 69,317 | 61,804 | 57,131 |
Equipment Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 157,506 | $ 221,610 | $ 178,836 |
Other Wireless Service And Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 23,749 | ||
New Zealand | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 486,380 | ||
New Zealand | Postpaid Wireless | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 170,371 | ||
New Zealand | Prepaid Wireless | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 88,771 | ||
New Zealand | Wireline Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 69,317 | ||
New Zealand | Equipment Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 149,103 | ||
New Zealand | Other Wireless Service And Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 8,818 | ||
Bolivia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 206,804 | ||
Bolivia | Postpaid Wireless | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 81,383 | ||
Bolivia | Prepaid Wireless | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 102,830 | ||
Bolivia | Equipment Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 8,403 | ||
Bolivia | Other Wireless Service And Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 14,188 | ||
Other Country | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 743 | ||
Other Country | Other Wireless Service And Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 743 |
Revenue From Contract With Cu_2
Revenue From Contract With Customer - Summary of changes in contract with customer assets (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Change in Contract with Customer, Asset [Abstract] | |
Beginning balance | $ 5,231 |
Increase resulting from new contracts | 3,957 |
Contract assets reclassified to a receivable or collected in cash | (6,145) |
Foreign currency translation | 1 |
Ending balance | $ 3,044 |
Revenue From Contract With Cu_3
Revenue From Contract With Customer - Summary of changes in the contract with customer liabilities (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Balance | $ 18,966 |
Net increase in deferred revenue | 19,489 |
Revenue recognized related to the balance existing at January 1, 2019 | (18,100) |
Foreign currency translation | (118) |
Balance | $ 20,237 |
Revenue From Contract With Cu_4
Revenue From Contract With Customer - Summary of contract costs (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Balance | $ 3,050 |
Incremental costs of obtaining and contract fulfilment costs | 19,519 |
Amortization included in operating costs | (6,930) |
Foreign currency translation | 159 |
Balance | $ 15,798 |
Revenue From Contract With Cu_5
Revenue From Contract With Customer - Additional information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Revenue remaining performance obligations | $ 12.1 |
Portion of the remaining performance obligations that is current | 91.00% |
Impairment losses recognized on capitalized contract | $ 0 |
Minimum | Accounting Standards Update 2014-09 [Member] | Deferred Contract Costs [Member] | |
Capitalized contract cost amortization period | 1 year |
Maximum | Accounting Standards Update 2014-09 [Member] | Deferred Contract Costs [Member] | |
Capitalized contract cost amortization period | 3 years |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Gain from change in fair value of warrant liability | $ (1) | $ (6,361) | $ (9,053) |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Unit (Detail) - USD ($) $ / shares in Units, $ in Thousands | 11 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Earnings Per Share [Abstract] | |||||
Net income (loss) attributable to TIP Inc. | $ (15,337) | $ 2,878 | $ (20,205) | $ (15,337) | |
Basic weighted average Common Shares outstanding | 44,692,369 | 56,629,405 | 53,678,914 | 44,692,369 | |
Basic net income (loss) per share | $ (0.34) | $ 0.05 | $ (0.38) | $ (0.34) | [1] |
Net income (loss) attributable to TIP Inc. | $ (15,337) | $ 2,878 | $ (20,205) | $ (15,337) | |
Add back: Net loss attributable to Class C Units - Redeemable for Common Shares | (18,444) | (11,996) | |||
Net income (loss) attributable to TIP Inc. and Class C Units | $ (33,781) | $ 2,878 | $ (32,201) | ||
Basic weighted average Common Shares outstanding | 44,692,369 | 56,629,405 | 53,678,914 | 44,692,369 | |
Unvested RSUs | 157,940 | ||||
Weighted average Class C Units - Redeemable for Common Shares | 37,058,289 | 28,514,587 | |||
Diluted weighted average Common Shares outstanding | 81,750,658 | 56,787,345 | 82,193,501 | 81,750,658 | |
Diluted net income (loss) per share | $ (0.41) | $ 0.05 | $ (0.39) | $ (0.41) | [1] |
[1] | For the period from February 7, 2017 through December 31, 2017 |
Schedule of Weighted Average Di
Schedule of Weighted Average Dilutive Effect of Common Shares (Detail) - shares | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common Shares excluded from calculation of diluted net income (loss) per share | 15,974,511 | 42,688,047 | 16,896,803 |
Class C Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common Shares excluded from calculation of diluted net income (loss) per share | 26,439,817 | ||
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common Shares excluded from calculation of diluted net income (loss) per share | 13,402,685 | 13,402,685 | 13,402,685 |
Forfeitable Founders shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common Shares excluded from calculation of diluted net income (loss) per share | 1,675,336 | 1,675,336 | 1,675,336 |
Unvested RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common Shares excluded from calculation of diluted net income (loss) per share | 704,360 | 1,074,144 | 1,674,684 |
Unvested Class C Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common Shares excluded from calculation of diluted net income (loss) per share | 192,130 | 96,065 | 144,098 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 3,428 | $ 6,059 |
Other comprehensive income (loss) | 986 | (2,629) |
Unrealized net gain (loss) related to short-term investments | 1 | (2) |
Net current period other comprehensive income (loss) | 987 | (2,631) |
Balance | 4,415 | 3,428 |
Cumulative Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 3,429 | 6,058 |
Other comprehensive income (loss) | 986 | (2,629) |
Net current period other comprehensive income (loss) | 986 | (2,629) |
Balance | 4,415 | 3,429 |
Unrealized Gains and Losses on Derivative Instruments and Short-term Investments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (1) | 1 |
Unrealized net gain (loss) related to short-term investments | 1 | (2) |
Net current period other comprehensive income (loss) | $ 1 | (2) |
Balance | $ (1) |
Non-controlling interests (Deta
Non-controlling interests (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Noncontrolling Interest [Line Items] | ||
Non-controlling interest | $ 55,488 | $ 37,979 |
2degrees | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interest | 39,223 | 20,426 |
Nueva Tel | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interest | 45,122 | 51,165 |
Trilogy LLC | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interest | (28,159) | (32,874) |
Salamanca Solutions International LLC | ||
Noncontrolling Interest [Line Items] | ||
Non-controlling interest | $ (698) | $ (738) |
Non-controlling interests - Add
Non-controlling interests - Additional Information (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Noncontrolling Interest [Line Items] | ||||
Dividends declared and paid | $ 537 | $ 8,437 | $ 7,573 | |
Nueva Tel | ||||
Noncontrolling Interest [Line Items] | ||||
Dividends declared and paid | $ 7,700 | $ 6,800 | $ 0 |
Schedule of Estimated Future Mi
Schedule of Estimated Future Minimum Lease Payment (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 25,148 |
2021 | 24,245 |
2022 | 21,861 |
2023 | 20,796 |
2024 | 20,126 |
Thereafter | 88,361 |
Total | $ 200,537 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2016 | Apr. 30, 2013 | |
Commitments and Contingencies [Line Items] | |||||||
Aggregate rental expense for operating leases | $ 25.6 | $ 22.1 | $ 21.1 | ||||
Nueva Tel | Bolivian | |||||||
Commitments and Contingencies [Line Items] | |||||||
Payment for license fee | $ 30.2 | ||||||
Nueva Tel | Bolivia | ATT | |||||||
Commitments and Contingencies [Line Items] | |||||||
Fine imposed | $ 4.5 | $ 4.5 | $ 2.2 | ||||
Interest and fine on accrued liability | $ 0.1 |
New Zealand Purchase Commitment
New Zealand Purchase Commitments (Detail) - New Zealand $ in Thousands | Dec. 31, 2019USD ($) |
Long-term Purchase Commitment [Line Items] | |
2020 | $ 47,439 |
2021 | 27,630 |
2022 | 28,737 |
2023 | 11,106 |
2024 | $ 11,106 |
Bolivia Purchase Commitments (D
Bolivia Purchase Commitments (Detail) - Bolivia $ in Thousands | Dec. 31, 2019USD ($) |
Long-term Purchase Commitment [Line Items] | |
2020 | $ 27,123 |
2021 | 5,275 |
2022 | 2,110 |
2023 | 2,110 |
2024 | $ 2,110 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) From Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Loss From Operations Before Provision Benefit For Income Taxes [Line Items] | |||
United States | $ (42,578) | $ (42,461) | $ (65,071) |
Loss before income taxes | (16,774) | (26,841) | (21,877) |
CANADA | |||
Income Loss From Operations Before Provision Benefit For Income Taxes [Line Items] | |||
Foreign | (578) | 5,934 | 8,602 |
All Other Foreign | |||
Income Loss From Operations Before Provision Benefit For Income Taxes [Line Items] | |||
Foreign | $ 26,382 | $ 9,686 | $ 34,592 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
United States | $ 125 | $ 350 | |
Current Income Tax Expense Total | 23,859 | 7,498 | $ 7,652 |
Deferred: | |||
Deferred Income Tax Expense (Benefit) | (64,655) | (2,609) | 529 |
Total | (40,796) | 4,889 | 8,181 |
All Other Foreign | |||
Current: | |||
Foreign | 23,734 | 7,148 | 7,652 |
Deferred: | |||
Foreign | $ (64,655) | $ (2,609) | $ 529 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | ||
Valuation allowance | $ 25,348 | $ 70,279 |
Reduction in valuation allowance | $ 45,000 | |
US NOL Carryforwards Generated Prior to December 31 2017 [Member] | ||
Income Taxes [Line Items] | ||
Tax credit carryforward, limitations on use | 20 years | |
US NOL Carryforwards Generated After December 31 2018 [Member] | ||
Income Taxes [Line Items] | ||
Tax credit carryforward, limitations on use | indefinitely | |
UNITED STATES | ||
Income Taxes [Line Items] | ||
Statutory income tax rate | 21.00% | |
Net operating loss carryforward | $ 45,000 | |
CANADA | ||
Income Taxes [Line Items] | ||
Statutory income tax rate | 25.00% | |
Net operating loss carryforward | $ 10,000 | |
Tax credit carryforward, limitations on use | 20 years | |
New Zealand | ||
Income Taxes [Line Items] | ||
Net operating loss carryforward | $ 36,000 | |
Valuation allowance | $ 25,000 | |
2degrees | ||
Income Taxes [Line Items] | ||
Statutory income tax rate | 28.00% | |
Nueva Tel | ||
Income Taxes [Line Items] | ||
Statutory income tax rate | 25.00% |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Provision of Income Taxes [Line Items] | |||
Earnings attributable to non-tax paying entities | $ 3,502 | $ 3,815 | $ 8,597 |
Foreign rate differential | 1,878 | 714 | (1,996) |
Change in valuation allowance | (45,037) | 19,398 | (21,586) |
Effect of intercompany asset transfer | (23,484) | 25,987 | |
Impact of tax law changes | 7,237 | 5,068 | |
Foreign withholding tax incurred | 1,316 | 2,259 | 692 |
Withholding taxes on unrepatriated foreign earnings | (2,281) | (1,212) | 2,215 |
Inflation adjustment | (1,824) | (2,235) | (1,333) |
Permanent adjustments | 3,322 | 503 | (3,001) |
Foreign exchange translation | 30 | 2,668 | (1,464) |
Other - net | 2,492 | 1,936 | 471 |
Total | (40,796) | 4,889 | 8,181 |
CANADA | |||
Reconciliation of Provision of Income Taxes [Line Items] | |||
Income tax benefit at Canadian federal rate | $ (4,194) | $ (6,710) | $ (5,469) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets And Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | |||
Intangible assets | $ 9,457 | $ 10,100 | |
Fixed assets | 18,503 | 20,445 | |
Bad debt allowance | 5,332 | 4,471 | |
NOL and foreign tax credit carryforwards | 23,920 | 24,759 | |
Accrued liabilities | 9,106 | 8,317 | |
Inventory valuation | 716 | 763 | |
Excess business interest expense | 9,489 | 4,625 | |
Equity based compensation | 2,678 | 2,885 | |
Transaction costs | 777 | 1,364 | |
Tower sale deferred gain | 13,758 | ||
Tower sale financing obligation | 4,198 | ||
Other | 6,293 | 4,211 | |
Subtotal | 104,227 | 81,940 | |
Less: valuation allowance | (25,348) | (70,279) | |
Total net deferred tax assets | 78,879 | 11,661 | |
Fixed assets | (963) | (915) | |
NRS contract asset | (4,914) | ||
Withholding taxes on unrepatriated foreign earnings | (9,523) | (11,439) | |
Total deferred tax liabilities | (15,400) | (12,354) | |
Net deferred tax asset | 63,479 | ||
Net deferred tax liability | (693) | ||
Classified on the balance sheet as: | |||
Deferred tax asset | 73,216 | $ 9,315 | 10,746 |
Deferred tax liability | $ (9,737) | $ (11,439) |
Income Taxes - Schedule of Open
Income Taxes - Schedule of Open Tax Year for Examination By Jurisdiction (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
New Zealand | Earliest Tax Year | |
Income Tax Contingency [Line Items] | |
Open tax year by jurisdiction | 2014 |
New Zealand | Latest Tax Year | |
Income Tax Contingency [Line Items] | |
Open tax year by jurisdiction | 2019 |
Bolivia | Earliest Tax Year | |
Income Tax Contingency [Line Items] | |
Open tax year by jurisdiction | 2014 |
Bolivia | Latest Tax Year | |
Income Tax Contingency [Line Items] | |
Open tax year by jurisdiction | 2019 |
UNITED STATES | Earliest Tax Year | |
Income Tax Contingency [Line Items] | |
Open tax year by jurisdiction | 2016 |
UNITED STATES | Latest Tax Year | |
Income Tax Contingency [Line Items] | |
Open tax year by jurisdiction | 2019 |
CANADA | Earliest Tax Year | |
Income Tax Contingency [Line Items] | |
Open tax year by jurisdiction | 2015 |
CANADA | Latest Tax Year | |
Income Tax Contingency [Line Items] | |
Open tax year by jurisdiction | 2019 |
Income Taxes - Schedule of Supp
Income Taxes - Schedule of Supplemental Cash Flow Disclosure (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income and withholding tax paid | $ 11,874 | $ 15,217 | $ 11,628 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 2 | ||
Minimum | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage of total revenues | 10.00% | 10.00% | 10.00% |
Equipment Sales | New Zealand | Sales Revenue, Net [Member] | New Zealand Retail Reseller | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage of total revenues | 12.00% | 11.00% |
Financial Information of Report
Financial Information of Reportable Operating Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 693,927 | $ 798,175 | $ 778,900 |
Loss before income taxes | (16,774) | (26,841) | (21,877) |
Equity-based compensation | (4,041) | (5,856) | (2,853) |
Acquisition and other nonrecurring costs | (6,946) | (4,002) | (5,765) |
Depreciation, amortization and accretion | 109,845 | 111,889 | 106,909 |
Gain (loss) on disposal of assets and sale-leaseback transaction | 11,169 | (1,346) | (682) |
Capital expenditures | 85,212 | 82,924 | 92,352 |
Interest expense | (45,988) | (45,913) | (59,754) |
Assets | 838,627 | 739,028 | |
Change in fair value of warrant liability | 1 | 6,361 | 9,053 |
Debt modification and extinguishment costs | (4,192) | (6,689) | |
Other, net | 555 | (4,682) | 1,329 |
New Zealand | |||
Segment Reporting Information [Line Items] | |||
Revenues | 486,380 | ||
Bolivia | |||
Segment Reporting Information [Line Items] | |||
Revenues | 206,804 | ||
Operating Segments | New Zealand | |||
Segment Reporting Information [Line Items] | |||
Revenues | 486,380 | 556,410 | 520,042 |
Adjusted EBITDA | 106,308 | 90,396 | 85,307 |
Depreciation, amortization and accretion | 64,197 | 66,160 | 60,805 |
Capital expenditures | 59,555 | 53,085 | 53,904 |
Assets | 496,270 | 440,385 | |
Operating Segments | Bolivia | |||
Segment Reporting Information [Line Items] | |||
Revenues | 206,804 | 240,941 | 258,438 |
Adjusted EBITDA | 42,475 | 65,531 | 76,522 |
Depreciation, amortization and accretion | 44,944 | 45,107 | 45,925 |
Capital expenditures | 25,636 | 29,659 | 37,215 |
Assets | 331,538 | 289,402 | |
Corporate, Reconciling Items and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 743 | 824 | 420 |
Loss before income taxes | (10,462) | (11,249) | (11,436) |
Depreciation, amortization and accretion | 704 | 622 | 179 |
Capital expenditures | 21 | 180 | $ 1,233 |
Assets | $ 10,819 | $ 9,241 |
Revenues by Product or Service
Revenues by Product or Service (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 693,927 | $ 798,175 | $ 778,900 |
Wireless Service | |||
Segment Reporting Information [Line Items] | |||
Revenues | 457,192 | 500,327 | 526,199 |
Wireline Service | |||
Segment Reporting Information [Line Items] | |||
Revenues | 69,317 | 61,804 | 57,131 |
Equipment And Supplies Sales | |||
Segment Reporting Information [Line Items] | |||
Revenues | 157,506 | 221,610 | 178,836 |
Non-subscriber ILD and other Revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9,912 | 14,434 | 16,734 |
New Zealand | |||
Segment Reporting Information [Line Items] | |||
Revenues | 486,380 | ||
New Zealand | Wireline Service | |||
Segment Reporting Information [Line Items] | |||
Revenues | 69,317 | ||
Bolivia | |||
Segment Reporting Information [Line Items] | |||
Revenues | 206,804 | ||
Operating Segments | New Zealand | |||
Segment Reporting Information [Line Items] | |||
Revenues | 486,380 | 556,410 | 520,042 |
Operating Segments | New Zealand | Wireless Service | |||
Segment Reporting Information [Line Items] | |||
Revenues | 261,218 | 265,947 | 274,168 |
Operating Segments | New Zealand | Wireline Service | |||
Segment Reporting Information [Line Items] | |||
Revenues | 69,317 | 61,804 | 57,131 |
Operating Segments | New Zealand | Equipment And Supplies Sales | |||
Segment Reporting Information [Line Items] | |||
Revenues | 149,103 | 217,015 | 175,096 |
Operating Segments | New Zealand | Non-subscriber ILD and other Revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6,742 | 11,644 | 13,647 |
Operating Segments | Bolivia | |||
Segment Reporting Information [Line Items] | |||
Revenues | 206,804 | 240,941 | 258,438 |
Operating Segments | Bolivia | Wireless Service | |||
Segment Reporting Information [Line Items] | |||
Revenues | 195,974 | 234,380 | 252,031 |
Operating Segments | Bolivia | Equipment And Supplies Sales | |||
Segment Reporting Information [Line Items] | |||
Revenues | 8,403 | 4,595 | 3,740 |
Operating Segments | Bolivia | Non-subscriber ILD and other Revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,427 | 1,966 | 2,667 |
Corporate, Reconciling Items and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 743 | 824 | 420 |
Corporate, Reconciling Items and Eliminations | Non-subscriber ILD and other Revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 743 | $ 824 | $ 420 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 31, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Salamanca Solutions | ||||
Related Party Transaction [Line Items] | ||||
Change in net loss | $ 49 | $ (150) | $ (382) | |
Salamanca Solutions | Class C Units | Trilogy LLC | SHC and Three former Trilogy LLC Executives | ||||
Related Party Transaction [Line Items] | ||||
Stock repurchased | 2,140 | |||
Percentage of Equity Interest in Subsidiary Transferred | 80.00% | |||
Trilogy LLC Founders | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, amounts of transaction | 49 | $ 23 | $ 197 | |
New Island Cellular LLC | Trilogy LLC | ||||
Related Party Transaction [Line Items] | ||||
Aggregate principal amount | $ 6,200 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) $ in Thousands, $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||||
Feb. 29, 2020USD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 29, 2020NZD ($) | Dec. 31, 2019NZD ($) | |
Subsequent Event [Line Items] | ||||||||
Repayment of debt | $ 201,480 | $ 338,769 | $ 613,487 | |||||
Dividends declared and paid | $ 537 | 8,437 | 7,573 | |||||
Cash drawn under the facility during the period | 214,471 | 343,723 | 514,485 | |||||
Nueva Tel | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividends declared and paid | $ 7,700 | $ 6,800 | $ 0 | |||||
Nueva Tel | Syndicated Loan 2021 | BOLIVIA | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt stated interest rate | 8.12% | 8.12% | ||||||
2degrees | 2021 Senior Facilities Agreement | New Zealand | ||||||||
Subsequent Event [Line Items] | ||||||||
Borrowing capacity | $ 168,400 | $ 250 | ||||||
Subsequent Event | Nueva Tel | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividends declared and paid | $ 18,000 | |||||||
Subsequent Event | Nueva Tel | Syndicated Loan 2021 | BOLIVIA | ||||||||
Subsequent Event [Line Items] | ||||||||
Repayment of debt | $ 10,000 | |||||||
Subsequent Event | Nueva Tel | Bolivian 2021 Bank Loan | BOLIVIA | ||||||||
Subsequent Event [Line Items] | ||||||||
Cash drawn under the facility during the period | $ 8,300 | |||||||
Debt stated interest rate | 7.00% | 7.00% | ||||||
Subsequent Event | 2degrees | 285 Million NZD Facility | ||||||||
Subsequent Event [Line Items] | ||||||||
Borrowing capacity | $ 191,900 | $ 285 | ||||||
Debt Instrument, Term | 3 years | |||||||
Subsequent Event | 2degrees | NZD Accordion Facility | ||||||||
Subsequent Event [Line Items] | ||||||||
Borrowing capacity | $ 35 |