Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 06, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | WideOpenWest, Inc. | |
Entity Central Index Key | 1,701,051 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 82,694,850 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 27.3 | $ 69.4 |
Accounts receivable—trade, net of allowance for doubtful accounts of $6.0 and $5.8, respectively | 83.8 | 81.5 |
Accounts receivable—other | 5.9 | 2.1 |
Prepaid expenses and other | 19.1 | 12.2 |
Total current assets | 136.1 | 165.2 |
Plant, property and equipment, net | 997.7 | 924.7 |
Franchise operating rights | 809.2 | 952.4 |
Goodwill | 270.9 | 384.1 |
Intangible assets subject to amortization, net | 4 | 5.5 |
Other noncurrent assets | 32.9 | 9.7 |
Total assets | 2,250.8 | 2,441.6 |
Current liabilities | ||
Accounts payable—trade | 34.6 | 26.1 |
Accrued interest | 4.8 | 3.6 |
Accrued liabilities and other | 90.9 | 94.5 |
Current portion of debt and capital lease obligations | 24.2 | 24 |
Current portion of unearned service revenue | 50.1 | 43.2 |
Total current liabilities | 204.6 | 191.4 |
Long-term debt and capital lease obligations—less current portion and debt issuance costs | 2,275 | 2,227.2 |
Deferred income taxes, net | 161.6 | 220.4 |
Other noncurrent liabilities | 8.9 | 7 |
Total liabilities | 2,650.1 | 2,646 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, $0.01 par value, 100,000,000 shares authorized; 0 shares issued and outstanding | ||
Common stock, $0.01 par value, 700,000,000 shares authorized; 90,573,690 and 88,887,915 issued as of September 30, 2018 and December 31, 2017, respectively; 82,694,850 and 88,426,742 outstanding as of September 30, 2018 and December 31, 2017, respectively | 0.9 | 0.9 |
Additional paid-in capital | 310.7 | 299.9 |
Accumulated other comprehensive income | 5.4 | |
Accumulated deficit | (638.3) | (500.4) |
Treasury stock at cost, 7,878,840 and 461,173 shares as of September 30, 2018 and December 31, 2017, respectively | (78) | (4.8) |
Total stockholders' deficit | (399.3) | (204.4) |
Total liabilities and stockholders’ deficit | $ 2,250.8 | $ 2,441.6 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable-trade, allowance for doubtful accounts | $ 6 | $ 5.8 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding ( in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, shares issued (in shares) | 90,573,690 | 88,887,915 |
Common stock, shares outstanding ( in shares) | 82,694,850 | 88,426,742 |
Common shares held in treasury, (in shares) | 7,878,840 | 461,173 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Revenue | $ 291.6 | $ 297.8 | $ 868.4 | $ 895.3 |
Costs and expenses: | ||||
Operating (excluding depreciation and amortization) | 152.7 | 153.2 | 467.9 | 470.4 |
Selling, general and administrative | 37 | 38.1 | 116.4 | 100.9 |
Depreciation and amortization | 46.3 | 49 | 139 | 150.1 |
Impairment losses on intangibles and goodwill | 256.4 | |||
Gain on sale of assets | (1.5) | (1.5) | ||
Management fee to related party | 1 | |||
Total costs and expenses | 234.5 | 240.3 | 978.2 | 722.4 |
Income (loss) from operations | 57.1 | 57.5 | (109.8) | 172.9 |
Other income (expense): | ||||
Interest expense | (35) | (32.2) | (96.8) | (122) |
Gain on sale of Lawrence, Kansas system | 38.4 | |||
Loss on early extinguishment of debt | (26.1) | (32.1) | ||
Other income, net | 0.5 | 0.3 | 1.7 | 1.7 |
Income (loss) before provision for income tax | 22.6 | (0.5) | (204.9) | 58.9 |
Income tax benefit (expense) | 7.9 | (1.6) | 57.9 | 16.4 |
Net income (loss) | $ 30.5 | $ (2.1) | $ (147) | $ 75.3 |
Basic and diluted earnings (loss) per common shares | ||||
Basic (in dollars per share) | $ 0.38 | $ (0.02) | $ (1.79) | $ 0.99 |
Diluted (in dollars per share) | $ 0.37 | $ (0.02) | $ (1.79) | $ 0.99 |
Weighted-average common shares outstanding | ||||
Basic (in shares) | 80,663,128 | 86,973,345 | 82,319,223 | 76,014,568 |
Diluted (in shares) | 81,569,173 | 86,973,345 | 82,319,223 | 76,096,401 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (INCOME) LOSS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | $ 30.5 | $ (2.1) | $ (147) | $ 75.3 |
Unrealized gain on interest rate derivative instrument | 6 | 5.4 | ||
Comprehensive income (loss) | $ 36.5 | $ (2.1) | $ (141.6) | $ 75.3 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT - 9 months ended Sep. 30, 2018 - USD ($) $ in Millions | Common Stock | Treasury Stock at Cost | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total |
Balances at beginning of period (in shares) at Dec. 31, 2017 | 88,426,742 | 88,426,742 | ||||
Balances at beginning of period at Dec. 31, 2017 | $ 0.9 | $ (4.8) | $ 299.9 | $ (500.4) | $ (204.4) | |
Increase (Decrease) in Stockholders' Deficit | ||||||
Impact of change in accounting policy | 9.1 | 9.1 | ||||
Changes in accumulated other comprehensive income | $ 5.4 | 5.4 | ||||
Stock-based compensation | 11 | $ 11 | ||||
Issuance of restricted stock (in shares) | 1,685,775 | |||||
Purchase of shares (in shares) | (7,417,667) | (7,417,667) | ||||
Purchase of shares | (73.2) | $ (73.2) | ||||
Other | (0.2) | (0.2) | ||||
Net loss | (147) | $ (147) | ||||
Balances at end of period (in shares) at Sep. 30, 2018 | 82,694,850 | 82,694,850 | ||||
Balances at end of period at Sep. 30, 2018 | $ 0.9 | $ (78) | $ 310.7 | $ 5.4 | $ (638.3) | $ (399.3) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIT (Parenthetical) - shares | Sep. 30, 2018 | Dec. 31, 2017 |
Restricted stock awards | ||
Number of shares granted to employees and directors | 2,403,512 | 1,914,570 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (147) | $ 75.3 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 139 | 150.1 |
Deferred income taxes | (59) | (25) |
Provision for doubtful accounts | 14.2 | 14.3 |
Gain on sale of Chicago fiber assets | (1.5) | |
Amortization of debt issuance costs and discount, net | 3.6 | 3.8 |
Gain on sale of Lawrence, Kansas system | (38.4) | |
Loss on early extinguishment of debt | 7.1 | |
Impairment losses on intangibles and goodwill | 256.4 | |
Non-cash compensation | 11 | 8.3 |
Other non-cash items | 0.3 | |
Changes in operating assets and liabilities: | ||
Receivables and other operating assets | (23.4) | (23.4) |
Payables and accruals | 6.5 | (56) |
Net cash provided by operating activities | 199.8 | 116.4 |
Cash flows from investing activities: | ||
Capital expenditures | (213.8) | (224.3) |
Proceeds from sale of Chicago fiber assets | 3.4 | |
Proceeds from sale of Lawrence, Kansas system | 213 | |
Other investing activities | 0.4 | |
Net cash used in investing activities | (210.4) | (10.9) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 60 | 2,454.3 |
Payments on debt and capital lease obligations | (18.1) | (2,896.2) |
Proceeds from issuance of common stock, net of issuance costs | 334.7 | |
Contribution from former Parent | 20.3 | |
Payment of debt issuance costs | (3.7) | |
Repurchase of old management units | (8.8) | |
Purchase of treasury stock | (73.2) | |
Other | (0.2) | (0.5) |
Net cash used in financing activities | (31.5) | (99.9) |
(Decrease) increase in cash and cash equivalents | (42.1) | 5.6 |
Cash and cash equivalents, beginning of period | 69.4 | 30.8 |
Cash and cash equivalents, end of period | 27.3 | 36.4 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the periods for interest | 92 | 161.6 |
Cash paid during the periods for income taxes | 12 | 4.4 |
Non-cash financing activities: | ||
Capital lease additions | 2.5 | |
Capital expenditure accounts payable and accruals | $ 11.3 | $ 15 |
General Information
General Information | 9 Months Ended |
Sep. 30, 2018 | |
General Information | |
General Information | Note 1. General Information WideOpenWest, Inc. (“WOW” or the “Company”) was organized in Delaware in July 2012 as WideOpenWest Kite, Inc. WideOpenWest Kite, Inc. subsequently changed its name to WideOpenWest, Inc. in March 2017. On April 1, 2016, the Company consummated a restructuring (“Restructuring”) whereby WideOpenWest Finance, LLC (“WOW Finance”) became a wholly owned subsidiary of WOW. Previously, WOW Finance was owned by WOW, WideOpenWest Illinois, Inc., WideOpenWest Ohio, Inc. and Sigecom, Inc. (collectively, the “Members”, or WOW and “Affiliates”). Prior to the Restructuring, the Members were wholly owned subsidiaries of Racecar Acquisition, LLC (“Racecar Acquisition”). As a result of the Restructuring, the Affiliates merged with and into WOW, WOW became the sole subsidiary of Racecar Acquisition and WOW Finance became a wholly owned subsidiary of WOW. On May 25, 2017, the Company completed an initial public offering (“IPO”) of shares of its common stock, which are listed on the New York Stock Exchange (“NYSE”) under the ticker symbol “WOW”. Prior to its IPO, WOW was wholly owned by Racecar Acquisition, which is a wholly owned subsidiary of WideOpenWest Holdings, LLC (“Parent”). Subsequent to the IPO, Racecar Acquisition and former Parent were liquidated and the shares distributed to their respective owners. In the following context, the terms we, us, WOW, or the Company may refer, as the context requires, to WOW or, collectively, WOW and its subsidiaries. The Company is a fully integrated provider of high-speed data (“HSD”), cable television (“Video”), and digital telephony (“Telephony”) services. The Company serves customers in nineteen Midwestern and Southeastern markets in the United States. The Company manages and operates its Midwestern systems in Detroit and Lansing, Michigan; Chicago, Illinois; Cleveland and Columbus, Ohio; Evansville, Indiana and Baltimore, Maryland. The Southeastern systems are located in Augusta, Columbus, Newnan and West Point, Georgia; Charleston, South Carolina; Dothan, Auburn, Huntsville and Montgomery, Alabama; Knoxville, Tennessee; and Panama City and Pinellas County, Florida. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation Subsequent to the Restructuring, the financial statements and notes to financial statements presented herein include the consolidated accounts of WOW and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company operates as one operating segment. Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation with no effect on the Company’s previously reported results of operations, financial position, or cash flows. Certain employees of WOW participated in equity plans administered by the Company’s former Parent. Because the management units from the equity plan were issued from the former Parent’s ownership structure, the management units’ value directly correlated to the results of WOW, as the primary asset of the former Parent’s investment in WOW. The management units for the equity plan have been “pushed down” to the Company, as the management units had been utilized as equity-based compensation for WOW management. Immediately prior to the Company’s IPO, these management units were cancelled. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”); however, in our opinion, the disclosures made are adequate to make the information presented not misleading. The year-end consolidated balance sheet was derived from audited financial statements. In the opinion of management, all normally recurring adjustments considered necessary for the fair presentation of the financial statements have been included, and the financial statements present fairly the financial position and results of operations for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results expected for the full year or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the 2017 Annual Report filed with the SEC on March 14, 2018. Use of Estimates The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP. These accounting principles require management to make assumptions and estimates that affect the reported amounts and disclosures of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts and disclosures of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances. To the extent there are differences between those estimates and actual results, the unaudited condensed consolidated financial statements may be materially affected. Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”). Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018 (January 1, 2019 for the Company). ASU 2016-02 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, ASU 2018-10, Codification Improvements to Topic 842, Leases, and ASU 2018-11, Targeted Improvements (“ASU 2018-11”). The Company will adopt the new guidance on the effective date of January 1, 2019 and use the adoption date as the date of initial application as allowed under ASU 2018-11. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the ‘package of practical expedients’, which permits the Company not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs, and the practical expedient pertaining to land easements, which allows the Company to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under current Topic 840. The Company does not expect to elect the use-of-hindsight transition practical expedient. The Company’s adoption process of ASU 2016-02 is ongoing, including evaluating and quantifying the impact on the financial statements, identifying the population of leases, implementing a selected technology solution and collecting and validating lease data. While the Company continues to assess all of the effects of adoption, the Company currently believes the most significant effects relate to the recognition of new right-of-use assets and lease liabilities on the balance sheet for real estate operating leases, and providing significant new disclosures about the Company’s leasing activities. The new standard also provides practical expedients for the Company’s ongoing accounting. The Company expects to elect the short-term lease recognition exemption for all leases that qualify, meaning the Company will not recognize right-of-use assets or lease liabilities for existing and new lease agreements that qualify. The Company also expects to elect the practical expedient to not separate lease and non-lease components for all of its leases, including those for which the Company is a lessee and those for which it is a lessor. ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (“ASU 2018-15”), which requires a customer in a hosting arrangement that is a service contract to apply the guidance on internal-use software to determine which implementation costs to recognize as an asset and which costs to expense. Costs to develop or obtain internal-use software that cannot be capitalized under Subtopic 350-40, Internal-Use Software, such as training costs and certain data conversion costs, also cannot be capitalized for a hosting arrangement that is a service contract. The amendments require a customer in a hosting arrangement that is a service contract to determine whether an implementation activity relates to the preliminary project stage, the application development stage, or the post-implementation stage. Costs for implementation activities in the application development stage will be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages will be expensed immediately. ASU 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the timing of adopting this guidance and the impact of adoption on its financial position, results of operations and cash flows. Recently Adopted Accounting Pronouncements ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). ASC 606 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity is required to follow five steps which are comprised of (a) identifying the contract(s) with a customer; (b) identifying the performance obligations in the contract; (c) determining the transaction price; (d) allocating the transaction price to the performance obligations in the contract and (e) recognizing revenue when (or as) the entity satisfies a performance obligation. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective transition method and recorded the cumulative effect to the Company’s opening accumulated deficit of $9.1 million, net of tax, representing: (i) the recognition of a contract liability associated with “open” or “non-completed” month-to-month and fixed term service contracts containing fees for installation related activities, (ii) the recognition of an asset for costs of obtaining contracts with customers, associated with “open” or “non-completed” month-to-month and fixed term service contracts, and (iii) the income tax impacts of items (i) and (ii) above. A completed contract is defined in ASC 606 as a contract for which the Company has recognized all or substantially all of the revenue under the previous revenue recognition rules. In addition to applying the new revenue recognition rules under ASC 606 only to open or non-completed contracts, the Company has elected to apply the practical expedient related to contract modifications and have not separately evaluated the effects of contract modifications prior to January 1, 2018 in determining the adjustment to the Company’s opening accumulated deficit. Prior to the adoption of ASC 606, the Company recognized revenue related to installation activities upfront to the extent of direct selling costs, which generally resulted in recognition of revenue when the installation related activities had been provided to the customer. Under ASC 606, the majority of the Company’s installation related activities are not considered to be separate performance obligations and non-refundable upfront fees related to installations are assessed to determine whether they provide the customer with a material right. Following the adoption of ASC 606, the Company began recognizing upfront fees for installation related activities as revenue (i) over the period which the customer is expected to benefit from the ability to avoid paying an additional fee upon renewal for month-to-month residential subscription service contracts and (ii) over the term of the contract for business subscription service contracts. In addition, the Company began recognizing an asset for costs associated with obtaining contracts with customers, including sales commissions, and amortizing these costs over the expected period of benefit. The following tables summarize the impacts of adopting ASC 606 on the Company’s condensed consolidated balance sheet and statements of operations as of and for the three and nine months ended September 30, 2018. Condensed Consolidated Balance Sheet As of September 30, 2018 Without adoption of As reported Adjustments Topic 606 (in millions) Assets Current assets: Prepaid expenses and other $ 19.1 $ (5.0) $ 14.1 Total current assets 136.1 (5.0) 131.1 Other noncurrent assets 32.9 (18.1) 14.8 Total assets $ 2,250.8 $ (23.1) $ 2,227.7 Liabilities and Stockholders’ Deficit Current liabilities: Current portion of unearned service revenue $ 50.1 $ (3.5) $ 46.6 Total current liabilities 204.6 (3.5) 201.1 Deferred income taxes, net 161.6 (0.2) 161.4 Other noncurrent liabilities 8.9 (0.6) 8.3 Total liabilities 2,650.1 (4.3) 2,645.8 Accumulated deficit (638.3) (18.8) (657.1) Total stockholders’ deficit (399.3) (18.8) (418.1) Total liabilities and stockholders’ deficit $ 2,250.8 $ (23.1) $ 2,227.7 Condensed Consolidated Statements of Operations Three months ended September 30, 2018 Nine months ended September 30, 2018 Without Without adoption of adoption of As reported Adjustments Topic 606 As reported Adjustments Topic 606 (in millions) Revenue $ 291.6 $ — $ 291.6 $ 868.4 $ (2.0) $ 866.4 Costs and expenses: Selling, general and administrative 37.0 (4.3) 32.7 116.4 (11.7) 104.7 234.5 (4.3) 230.2 978.2 (11.7) 966.5 Income (loss) from operations 57.1 4.3 61.4 (109.8) 9.7 (100.1) Income (loss) before provision for income taxes 22.6 4.3 26.9 (204.9) 9.7 (195.2) Net income (loss) $ 30.5 $ 4.3 $ 34.8 $ (147.0) $ 9.7 $ (137.3) ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which changes the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. ASU 2017-12 eliminates the concept of separately recognizing periodic hedge ineffectiveness for cash flow and net investment hedges. ASU 2017-12 is effective for public companies for fiscal years beginning after December 15, 2018; however, the Company elected to early adopt this ASU in the second quarter of 2018 in conjunction with entering into an interest rate derivative instrument. The adoption of this pronouncement did not have a material impact on the Company’s financial position, results of operations or cash flows. ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The Company early adopted this standard in the fourth quarter of 2017 in conjunction with its annual goodwill impairment assessment. ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 eliminates the current prohibition on the recognition of the income tax effects on the transfer of assets among subsidiaries. After adoption of this ASU, the income tax effects associated with these transfers, except for the transfer of inventory, will be recognized in the period the asset is transferred versus the current deferral and recognition upon either the sale of the asset to a third party or the remaining useful life of the asset. The standard became effective for the Company beginning January 1, 2018, and requires any deferred taxes not yet recognized on intra-entity transfers to be recorded to retained earnings under a modified retrospective approach. The adoption of this pronouncement did not have a material impact on the Company’s financial position, results of operations or cash flows. ASU 2016-15, Statement of Cash Flows (Topic 230) In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) (“ASU 2016-15”), making changes to the classification of certain cash receipts and cash payments in order to reduce diversity in presentation. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The update addresses eight specific cash flow issues, of which only one is applicable to the Company's financial statements. The adoption of this pronouncement did not have a material impact on the Company’s financial position, results of operations or cash flows. ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which amends the recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 contains several amendments of which only the amendment to present financial assets and financial liabilities by measurement category and form of financial asset applies to the Company. The adoption of this pronouncement did not have a material impact on the Company’s financial position, results of operations or cash flows. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | Note 3. Revenue from Contracts with Customers Residential and Business Subscription Services Residential and business subscription services revenue consists primarily of monthly recurring charges for HSD, Video, and Telephony services, including charges for equipment rentals and other regulatory fees, and non-recurring charges for optional services, such as pay-per-view, video-on-demand, and other events provided to the customer. Monthly charges for residential and business subscription services are billed in advance and recognized as revenue over the period of time the associated services are provided to the customer. Charges for optional services are generally billed in arrears and are recognized at the point in time when the services are provided to the customer. · HSD revenue consists primarily of fixed monthly fees for data service, including charges for rentals of modems, and revenue recognized related to non-recurring upfront fees associated with installation and other administrative activities provided to HSD customers. · Video revenue consists of fixed monthly fees for basic, premium and digital cable television services, including charges for rentals of video converter equipment and other regulatory fees, and revenue recognized related to non-recurring upfront fees associated with installation and other administrative activities provided to video customers, as well as non-recurring charges for optional services, such as pay-per-view, video-on-demand and other events provided to the customer. · Telephony revenue consists of fixed monthly fees for local services, including certain regulatory and ancillary customer fees, and enhanced services, such as call waiting and voice mail, revenue recognized related to non-recurring upfront fees associated with installation and other administrative activities provided to telephony customers as well as charges for measured and flat rate long-distance service. The vast majority of the Company’s residential customers can cancel their subscription services at any time without paying a termination penalty. While a portion of residential customers have entered into contracts for subscription services ranging from 12 months to 24 months in length, the Company recognizes revenue for these customers on a basis that is consistent with customers that have entered into month-to-month contracts as the early termination fees within these contracts are not considered to be substantive. The Company’s business customers have entered into non-cancellable contracts for subscription services averaging 30 months. The Company is required to pay certain cable franchising authorities an amount based on the percentage of gross revenue derived from video services. The Company generally passes these fees and other similar regulatory and ancillary fees on to the customer. Revenues from regulatory and other ancillary fees passed on to the customer are reported with the associated service revenue and the corresponding costs are reported as an operating expense. Bundled Subscription Services The Company often markets multiple subscription services as part of a bundled arrangement that may include a discount. When customers have entered into a bundled service arrangement, the total transaction price for the bundled arrangement is allocated between the separate services included in the bundle based on their relative stand-alone selling prices. The allocation of the transaction price in bundled services requires judgment, particularly in determining the stand-alone selling prices for the separate services included in the bundle. The stand-alone selling price for the majority of services are determined based on the prices at which the Company separately sells the service. For services sold on an infrequent basis and for a wide range of prices, the Company estimates stand-alone selling prices using the adjusted market assessment approach, which considers the prices of competitors for similar services. Other Business Services Revenue Other business services revenue consists primarily of monthly recurring charges for session initiated protocol, web hosting, metro Ethernet, wireless backhaul, broadband carrier, and cloud infrastructure services provided to business customers. Monthly charges for other business services are generally billed in advance and recognized as revenue when the associated services are provided to the customer. Other Revenue Other revenue consists primarily of revenue from line assurance warranty services provided to residential and business customers and revenue from advertising placement. Monthly charges for line assurance warranty services are generally billed in advance and recognized as revenue over the period of time the warranty services are provided to the customer. Charges for advertising placement are generally billed in arrears and recognized as revenue at the point in time when the advertising is distributed. Revenue by Service Offering Revenue by service offering is set forth in the table below: Three months ended September 30, 2018 Nine months ended September 30, 2018 (in millions) Residential Business Total Residential Business Total Subscription Subscription Revenue Subscription Subscription Revenue HSD $ 100.2 $ 18.8 $ 119.0 $ 293.5 $ 54.7 $ 348.2 Video 115.8 3.5 119.3 353.6 10.6 364.2 Telephony 18.3 10.7 29.0 56.5 31.7 88.2 Total subscription services revenue $ 234.3 $ 33.0 $ 267.3 $ 703.6 $ 97.0 $ 800.6 Other business services revenue (a) — — 6.6 — — 20.6 Other revenue — — 17.7 — — 47.2 Total revenue $ 234.3 $ 33.0 $ 291.6 $ 703.6 $ 97.0 $ 868.4 (a) Includes wholesale and collocation revenue of $5.0 million and $16.0 million for the three and nine months ended September 30, 2018, respectively. Costs of Obtaining Contracts with Customers The Company recognizes an asset for incremental costs of obtaining contracts with customers when it expects to recover those costs. Costs which would be incurred regardless of whether a contract is obtained are expensed as they are incurred. Costs of obtaining contracts with customers are amortized over the expected period of benefit, which generally ranges from three to four years for residential customers and six to seven years for business customers. As of September 30, 2018, the current portion of costs of obtaining contracts with customers of $5.0 million and non-current portion of costs of obtaining contracts with customers of $18.1 million are included in prepaid expenses and other noncurrent assets, respectively, in the Company’s condensed consolidated balance sheet. Amortization of costs of obtaining contracts with customers is included in selling, general and administrative expense in the Company’s condensed consolidated statement of operations. Contract Liabilities Monthly charges for residential and business subscription services are billed in advance and recorded as unearned service revenue. Residential and business customers may be charged non-recurring upfront fees associated with installation and other administrative activities. Charges for upfront fees associated with installation and other administrative activities are initially recorded as unearned services revenue and recognized as revenue over the expected period of benefit for residential customers, which has been estimated as five months, and over the contract term for business customers, which has been estimated as 30 months. The Company has estimated the expected period of benefit for residential customers based on consideration of quantitative and qualitative factors including the average installation fee charged, the average monthly revenue per customer, and customer behavior. As of September 30, 2018, the current portion of $3.5 million and the non-current portion of $0.6 million are included in current portion of unearned service revenue and other noncurrent liabilities, respectively, in the Company’s condensed consolidated balance sheet. Unsatisfied Performance Obligations Revenue from month-to-month residential subscription service contracts have historically represented a significant portion of the Company’s revenue and the Company expects that this will continue to be the case in future periods. The Company has elected to apply the practical expedient in paragraph 606-10-50-14(a) and has not disclosed revenue expected to be recognized in the future related to month-to-month residential subscription services. A summary of expected commercial revenue to be recognized in future periods related to performance obligations which have not been satisfied or are partially unsatisfied as of September 30, 2018 is set forth in the table below: 2018 2019 2020 Thereafter Total (in millions) Subscription services $ 22.6 $ 64.7 $ 33.6 $ 14.8 $ 135.7 Other business services 1.3 4.3 1.1 0.7 7.4 Total expected revenue $ 23.9 $ 69.0 $ 34.7 $ 15.5 $ 143.1 |
Plant, Property and Equipment,
Plant, Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2018 | |
Plant, Property and Equipment, Net | |
Plant, Property and Equipment, Net | Note 4. Plant, Property and Equipment, Net Plant, property and equipment consists of the following: September 30, December 31, 2018 2017 (in millions) Distribution facilities $ 1,489.2 $ 1,373.6 Customer premise equipment 439.5 414.5 Head-end equipment 320.2 320.4 Telephony infrastructure 90.7 92.4 Computer equipment and software 124.1 107.6 Vehicles 35.7 36.0 Buildings and leasehold improvements 46.0 44.6 Office and technical equipment 32.9 32.8 Land 6.2 6.2 Construction in progress (including material inventory and other) 138.8 95.2 Total plant, property and equipment 2,723.3 2,523.3 Less accumulated depreciation (1,725.6) (1,598.6) $ 997.7 $ 924.7 Depreciation expense for the three months ended September 30, 2018 and 2017 was $46.1 million and $48.4 million, respectively. Depreciation expense for the nine months ended September 30, 2018 and 2017 was $137.8 million and $148.6 million, respectively. Included in depreciation expense were gains (losses) on write-offs or sales of head-end and customer premise equipment totaling $0.3 million and $nil for the three months ended September 30, 2018 and 2017, respectively; and $0.5 million and $0.3 million for the nine months ended September 30, 2018 and 2017, respectively. |
Asset Sales
Asset Sales | 9 Months Ended |
Sep. 30, 2018 | |
Asset Sales | |
Asset Sales | Note 5. Asset Sales Sale of Chicago Fiber Network On August 1, 2017, the Company entered into a definitive agreement to sell a portion of its fiber network in the Company’s Chicago market to a subsidiary of Verizon for $225.0 million in cash. On December 14, 2017, the Company finalized the sale by entering into an Asset Purchase Agreement (“APA”) with a subsidiary of Verizon. In addition to the APA, the Company and a subsidiary of Verizon entered into a Construction Services Agreement pursuant to which the Company will complete the build-out of the network in exchange for $50.0 million, which represents the estimated remaining build-out costs to complete the network. The $50.0 million will be recognized over time as such network elements are completed and accepted. The Company anticipates such network will be completed in the first half of 2019. As a result of entering into the Construction Services Agreement, the Company concluded that the assets and liabilities associated with the build-out of the network met the criteria to be classified as held for sale. As of September 30, 2018, the Chicago fiber network has $23.5 million in total assets held for sale that are included in the Company’s condensed consolidated balance sheet which represents what the Company has spent on construction subsequent to the signing of the definitive agreement, less the costs of sites completed. Sale of Lawrence, Kansas System On January 12, 2017, the Company and Midcontinent Communications (“MidCo”) consummated an asset purchase agreement under which MidCo acquired the Company’s Lawrence, Kansas system for net proceeds of approximately $213.0 million in cash, subject to certain normal and customary purchase price adjustments set forth in the agreement. As a result of the asset purchase agreement, the Company recorded a gain on sale of assets of $38.4 million. The results of the Company’s Lawrence, Kansas system for the first 12 days of fiscal 2017 are included in the condensed consolidated financial statements for the nine months ended September 30, 2017, but not included in the three and nine months ended September 30, 2018 condensed consolidated financial statements. The Company and MidCo also entered into a transition services agreement under which the Company provided certain services to MidCo on a transitional basis. The transition services agreement, originally expiring on July 1, 2017, was extended to September 28, 2017. Charges for the transition services generally allowed the Company to fully recover all allowed costs and allocated expenses incurred in connection with providing these services, generally without profit. |
Franchise Operating Rights & Go
Franchise Operating Rights & Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Franchise Operating Rights & Goodwill | |
Franchise Operating Rights & Goodwill | Note 6. Franchise Operating Rights & Goodwill Changes in the carrying amounts of the Company’s franchise operating rights and goodwill during the nine months ended September 30, 2018 are set forth below: December 31, September 30, 2017 Acquisitions Sales Impairment 2018 (in millions) Franchise operating rights $ 952.4 $ — $ — $ 143.2 $ 809.2 Goodwill 384.1 — — 113.2 270.9 $ 1,336.5 $ — $ — $ 256.4 $ 1,080.1 Due to the decline in the Company’s stock price during the first quarter of 2018, the Company performed an evaluation of recoverability of its franchise operating rights and goodwill. Impaired Franchise Operating Rights Franchise operating rights are evaluated for impairment by comparing the carrying value of the intangible asset to its estimated fair value, utilizing both quantitative and qualitative methods, at the reporting unit level. Qualitative analysis is performed for franchise assets in the event the previous analysis indicates that there is a significant margin between the carrying value of franchise operating rights and the estimated fair value of those rights, and that it is more likely than not that the estimated fair value equals or exceeds carrying value. For franchise operating rights that were evaluated using quantitative analysis, the Company calculates the estimated fair value of franchise operating rights using the multi-period excess earnings method, an income approach, which calculates the estimated fair value of an intangible asset by discounting its future cash flows. The estimated fair value is determined based on discrete discounted future cash flows attributable to each franchise operating right intangible asset using assumptions consistent with internal forecasts. Key assumptions in estimating fair value under this method include, but are not limited to, revenue and subscriber growth rates (less anticipated customer churn), operating expenditures, capital expenditures (including any build out), market share achieved or market multiples, contributory asset charge rates, tax rates and a discount rate. The discount rate used in the model represents a weighted average cost of capital and the perceived risk associated with an intangible asset such as the Company’s franchise operating rights. Any excess of the carrying value of franchise operating rights over the estimated fair value is expensed as an impairment loss. During the first quarter of 2018, as a result of the quantitative analysis, the carrying value of franchise operating rights exceeded the estimated fair value in four of the Company’s reporting units resulting in non-cash impairment charges of $3.2 million, $47.5 million, $77.5 million and $15.0 million in the Panama City, FL, Montgomery, AL, Huntsville, AL and Dothan, AL reporting units, respectively. The primary driver of the impairment charges was a decline in the price of the Company’s common stock, which reduced the market multiples utilized to determine estimated fair market values of indefinite-lived intangible assets in certain reporting units. The impairment charge does not have an impact on the Company’s intent and/or ability to renew or extend existing franchise operating rights. Impaired Goodwill Goodwill is evaluated for impairment at the reporting unit level utilizing both quantitative and qualitative methods. Qualitative analysis is performed for goodwill assets in the event the previous analysis indicates that there is a significant margin between carrying value of goodwill and estimated fair value, and that it is more likely than not that the estimated fair value equals or exceeds carrying value. For the quantitative evaluation of the Company’s goodwill, the Company utilizes both an income approach as well as a market approach. The income approach utilizes a discounted cash flow analysis to estimate the fair value of each reporting unit, while the market approach utilizes multiples derived from actual precedent transactions of similar businesses, the market value of the Company and market valuations of guideline public companies. Any excess of the carrying value of goodwill over the estimated fair value of goodwill is expensed as an impairment loss. During the first quarter 2018, as a result of the quantitative analysis, the carrying value of goodwill exceeded the estimated fair value in four of the Company’s reporting units resulting in non-cash impairment charges of $23.7 million, $16.7 million, $20.2 million and $52.6 million in the Panama City, FL, Huntsville, AL, Augusta, GA and Chicago, IL reporting units, respectively. The primary driver of the impairment charges was a decline in the price of the Company’s common stock, which reduced the market multiples utilized to determine estimated fair market values of goodwill in certain reporting units. |
Accrued Liabilities and Other
Accrued Liabilities and Other | 9 Months Ended |
Sep. 30, 2018 | |
Accrued Liabilities and Other | |
Accrued Liabilities and Other | Note 7. Accrued Liabilities and Other Accrued liabilities and other consists of the following: September 30, December 31, 2018 2017 (in millions) Programming costs $ 34.5 $ 32.2 Franchise and revenue sharing fees 11.4 12.2 Payroll and employee benefits 15.5 11.5 Property, income, sales and use taxes 8.0 18.9 Utility pole rentals 3.5 1.5 Other accrued liabilities 18.0 18.2 $ 90.9 $ 94.5 |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Leases | 9 Months Ended |
Sep. 30, 2018 | |
Long-Term Debt and Capital Leases | |
Long-Term Debt and Capital Leases | Note 8. Long‑Term Debt and Capital Leases The following table summarizes the Company’s long‑term debt and capital leases: December 31, September 30, 2018 2017 Available borrowing Effective Outstanding Outstanding capacity interest rate (1) balance balance (in millions) Long-term debt: Term B Loans, net(2) $ — 5.5 % $ 2,246.0 $ 2,261.4 Revolving Credit Facility(3) 234.6 5.2 % 60.0 — Total long-term debt $ 234.6 2,306.0 2,261.4 Capital lease obligations 4.3 2.8 Total long-term debt and capital lease obligations 2,310.3 2,264.2 Debt issuance costs, net(4) (11.1) (13.0) Sub-total 2,299.2 2,251.2 Less current portion (24.2) (24.0) Long-term portion $ 2,275.0 $ 2,227.2 (1) Represents the effective interest rate in effect for all borrowings outstanding as of September 30, 2018 pursuant to each debt instrument including the applicable margin. (2) At September 30, 2018 includes $11.2 million of net discounts. (3) Available borrowing capacity at September 30, 2018 represents $ 300.0 million of total availability less borrowing of $60.0 million on the Revolving Credit Facility and outstanding letters of credit of $ 5.4 million. Letters of credit are used in the ordinary course of business and are released when the respective contractual obligations have been fulfilled by the Company. (4) At September 30, 2018, debt issuance costs include $ 8.1 million related to Term B Loans and $ 3.0 million related to the Revolving Credit Facility. Refinancing of the Term B Loans and Revolving Credit Facility On July 17, 2017, the Company entered into an eighth amendment (“Eighth Amendment”) to its Credit Agreement, with JPMorgan Chase Bank, N.A., as the administrative agent and revolver agent. Under the Eighth Amendment, (i) the Company borrowed new Term B loans in an aggregate principal amount of $230.5 million, for a total outstanding Term B loan principal amount of $2.28 billion and (ii) the revolving credit commitments were increased by an aggregate principal amount of $100.0 million, for a total outstanding revolving credit commitment of $300.0 million available to the Company under the revolving credit facility. The new Term B loans will mature on August 19, 2023 and bear interest, at the Company’s option, at a rate equal to ABR plus 2.25% or LIBOR plus 3.25%. Loans under the revolving credit facility will mature on May 31, 2022 and bear interest, at the Company's option, at a rate equal to ABR plus 2.00% or LIBOR plus 3.00%. The guarantees, collateral and covenants in the Eighth Amendment remain unchanged from those contained in the credit agreement prior to the Eighth Amendment. As of September 30, 2018, the Company was in compliance with all debt covenants. On May 31, 2017, the Company entered into a seventh amendment (“Seventh Amendment”) to its Credit Agreement. The Seventh Amendment (i) refinanced the then-existing $200.0 million of borrowings available to the Company under the revolving credit facility and (ii) extended the maturity date of the revolving credit facility to May 31, 2022, unless an earlier date was triggered under certain circumstances. The interest rate margins applicable to the revolving credit facility bore interest at a rate equal to ABR plus 2.00% or LIBOR plus 3.00%. Additionally, the Company entered into an Incremental Commitment Letter to its revolving credit facility that increased the available borrowings to $300.0 million that became available upon compliance by the Company with certain conditions (see redemption of 10.25% senior notes whereby such conditionality was subsequently achieved as a result of the Eighth Amendment). The guarantees, collateral and covenants in the Seventh Amendment remained unchanged from those contained in the credit agreement prior to the Seventh Amendment. Redemption of 10.25% Senior Notes On March 20, 2017, the Company utilized cash on hand to redeem $95.1 million in aggregate principal amount outstanding of the 10.25% Senior Notes due 2019 (“Senior Notes”). In addition to the partial redemption, the Company paid accrued interest on the Senior Notes of $1.7 million and a call premium of $4.9 million. The Company recorded a loss on early extinguishment of debt of $5.0 million, primarily representing the cash call premium paid. On July 17, 2017, the Company used the proceeds of the new Term B loans under the Eighth Amendment, and borrowed $180.0 million under its revolving credit facility and cash on hand to fully redeem all of the Company’s remaining outstanding Senior Notes and to pay certain fees and expenses. In connection with the redemption of the Senior Notes, the Company satisfied and discharged the indenture governing the Senior Notes. The Company paid $729.9 million in principal amount, incurred prepayment fees of $18.7 million and paid accrued interest of $37.6 million. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity | |
Equity | Note 9. Equity Initial Public Offering On May 25, 2017, the Company completed an IPO of shares of its common stock, which are listed on the NYSE under the ticker symbol “WOW”. The Company sold 20,970,589 shares of its common stock at a price of $17 per share (including the underwriters’ exercise of the overallotment option) for $356.5 million in gross proceeds. The Company incurred costs directly associated with the IPO of $22.5 million, resulting in proceeds from the IPO (net of issuance costs) of $334.0 million. Outstanding shares and per-share amounts disclosed as of September 30, 2018 and for all other comparative periods presented have been retroactively adjusted to reflect the effects of the May 25, 2017, 66,498.762 to 1 stock-split. Common Stock The following represents the Company’s purchase of WOW common stock during the three and nine months ended September 30, 2018. The following shares are reflected as treasury stock in the Company’s condensed consolidated balance sheet. Three months ended Nine months ended September 30, 2018 September 30, 2018 Share buybacks 1,447,600 7,098,637 Income tax withholding 11,265 319,030 1,458,865 7,417,667 On December 14, 2017, the Company’s Board of Directors authorized the Company to purchase up to $50.0 million of its outstanding common stock. The Company completed the buyback program on March 26, 2018, with total common stock shares repurchased of 5.1 million. On May 10, 2018, the Board of Directors authorized the Company to repurchase up to $25.0 million of its outstanding common stock. The Company completed the buyback program on August 8, 2018, with total common stock shares repurchased of 2.5 million. The Company has the authority to reissue shares repurchased under the buyback programs. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 10. Stock-Based Compensation WOW’s 2017 Omnibus Incentive Plan provides for grants of stock options, restricted stock and performance awards. The Company’s directors, officers and other employees and persons who engage in services for the Company are eligible for grants under the 2017 Omnibus Incentive Plan. The 2017 Omnibus Incentive Plan has authorized 6,355,054 shares of common stock to be available for issuance, subject to adjustment in the event of a reorganization, stock split, merger or similar change in the Company’s corporate structure of the outstanding shares of common stock. The following table summarizes the restricted stock activity during the nine months ended September 30, 2018. Number of Restricted Stock Shares Outstanding January 1, 2018 1,914,570 Granted 2,074,469 Cancelled — Vested (1,196,833) Forfeited (388,694) Outstanding September 30, 2018 (1) 2,403,512 (1) The total outstanding non-vested shares of restricted stock awards granted to employees and directors are included in total outstanding shares as of September 30, 2018. For restricted stock awards that contain only service conditions for vesting, the Company calculates the award fair value based on the closing stock price on the accounting grant date. Restricted stock generally vests ratably over a three or four year period based on the date of grant. Included in the vested grants are 791,280 short term grants that replaced the 2017 Management Bonus Plan, which provided for incentive cash bonuses for the majority of the Company’s employees based upon the achievement of certain business and individual or department objectives, including most prominently adjusted consolidated earnings before interest, tax, depreciation and amortization. These short term grants fully vested on June 30, 2018. The Company recorded $2.1 million and $5.2 million for the three months ended September 30, 2018 and 2017, respectively, and recorded $11.0 million and $8.3 million f or the nine months ended September 30, 2018 and 2017, respectively, of non-cash stock-based compensation expense which is reflected in selling, general and administrative expense and operating expenses (excluding depreciation and amortization), depending on the recipients’ duties, in the Company’s condensed consolidated statements of operations. |
Earnings (Loss) per Common Shar
Earnings (Loss) per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings (Loss) per Common Share | |
Earnings (Loss) per Common Share | Note 11. Earnings (Loss) per Common Share Basic earnings or loss per share attributable to the Company’s common stockholders is computed by dividing net earnings or loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings or loss per share attributable to common stockholders presents the dilutive effect, if any, on a per share basis of potential common shares (such as restricted stock units) as if they had been vested or converted during the periods presented. No such items were included in the computation of diluted loss per share for the nine months ended September 30, 2018 because the Company incurred a net loss in the period and the effect of inclusion would have been anti-dilutive. All of the shares outstanding and per share amounts have been retroactively adjusted to reflect the stock-split in the Company’s condensed consolidated financial statements. Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 (in millions, except for per share data) Net income (loss) $ 30.5 $ (2.1) $ (147.0) $ 75.3 Basic weighted-average shares 80,663,128 86,973,345 82,319,223 76,014,568 Effect of dilutive securities: Restricted stock awards 906,045 — — 81,833 Diluted weighted-average shares 81,569,173 86,973,345 82,319,223 76,096,401 Basic net income (loss) per share $ 0.38 $ (0.02) $ (1.79) $ 0.99 Diluted net income (loss) per share $ 0.37 $ (0.02) $ (1.79) $ 0.99 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | Note 12. Fair Value Measurements The fair values of cash and cash equivalents, receivables, trade payables and the current portions of long-term debt approximate carrying values due to the short-term nature of these instruments. For assets and liabilities of a long-term nature, the Company determines fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. The Company applies the following hierarchy in determining fair value: · Level 1, defined as observable inputs being quoted prices in active markets for identical assets; · Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model‑derived valuations in which significant inputs and significant value drivers are observable in active markets; and · Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2018. Level 1 Level 2 Level 3 Total Financial Assets (in millions) Interest rate swaps (1) $ — $ $ — $ Total $ — $ $ — $ Financial Liabilities Interest rate swaps (1) $ — $ 2.0 $ — $ 2.0 Long-term debt (2) — 2,206.4 — 2,206.4 Total $ — $ 2,208.4 $ — $ 2,208.4 (1) Measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curves as of September 30, 2018. The present value calculation uses discount rates that have been adjusted to reflect the credit quality of the Company and its counterparties. (2) Measured based on dealer quotes considering current market rates for the Company’s credit facility. The ratio of the Company’s aggregate debt balance has trended from quoted market prices in active markets to quoted prices in non-active markets. Debt fair value does not include debt issuance costs and discount. There were no transfers into or out of Level 1, 2 or 3 during the three or nine months ended September 30, 2018. |
Interest Rate Hedge
Interest Rate Hedge | 9 Months Ended |
Sep. 30, 2018 | |
Interest Rate Hedge | |
Interest Rate Hedge | Note 13. Interest Rate Hedge The Company is exposed to certain market risks during the normal course of its business arising from adverse changes in interest rates. The Company selectively uses derivative financial instruments (“derivatives”), including interest rate swaps, to manage interest rate risk. The Company does not hold or issue derivative instruments for speculative purposes. Fluctuations in interest rates can be volatile, and the Company’s risk management activities do not totally eliminate these risks. Consequently, these fluctuations could have a significant effect on the Company’s financial results. The Company’s exposure to interest rate risk results primarily from its variable rate borrowings. On May 9, 2018, the Company entered into variable to fixed interest rate swap agreements for a notional amount of $1,361.2 million to hedge the outstanding principal balance of its variable rate term loan debt. As of September 30, 2018, the Company is the fixed rate payor on two interest rate swap contracts that effectively fix the LIBOR-based index used to determine the interest rates charged on a total of $2,257.2 million, not including debt issuance costs and discount, of the Company’s LIBOR-based variable rate borrowings. These contracts carry fixed rates of 2.7% and have an expiration date of May 2021. These swap agreements qualify as hedging instruments and have been designated as cash flow hedges of forecasted LIBOR-based interest payments. As all of the critical terms of each of the derivative instruments matched the underlying terms of the hedged debt and related forecasted interest payments, these hedges were considered highly effective. Based on LIBOR-based swap yield curves as of September 30, 2018, the Company expects to reclassify losses of $2.0 million out of accumulated other comprehensive income (“AOCI”) into earnings within the next 12 months. The following table summarizes the notional amounts, fair values and classification of the Company’s outstanding derivatives by risk category and instrument type within the condensed consolidated balance sheet as of September 30, 2018. The Company did not have any derivative instruments as of December 31, 2017. September 30, 2018 Fair Value Fair Value Accrued Derivative Notional Non-Current Liabilities Classification Amount Other Assets and Other Derivatives Designated as Hedging Instruments (in millions) Interest rate swap contracts Cash Flow $ 1,354.3 $ 7.2 $ 2.0 Losses recognized in the condensed consolidated statements of operations for the three and nine months ended September 30, 2018 total $2.1 million and $3.4 million, respectively. Gains and losses on derivatives designated as cash flow hedges included in the condensed consolidated statements of comprehensive income (loss) for the three and nine months ended September 30, 2018 are shown in the table below. The Company did not have any derivative instruments for the three months or nine months ended September 30, 2017. Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Interest rate swap contracts(1) (in millions) Gain recorded in AOCI on derivatives $ 6.0 $ — $ 5.4 $ — Gain (loss) reclassified from AOCI into income — — — — (1) Losses on derivatives reclassified from AOCI into income will be included in “Interest expense” in the condensed consolidated statements of operations, the same income statement line item as the earnings effect of the hedged item. For the periods presented, all cash flows associated with derivatives are classified as operating cash flows in the condensed consolidated statements of cash flows. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Taxes | |
Income Taxes | Note 14. Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the difference is expected to reverse. Additionally, the impact of changes in the tax rates and laws on deferred taxes, if any, is reflected in the condensed consolidated financial statements in the period of enactment. The Company assesses the available positive and negative evidence to estimate whether sufficient taxable income will be generated to permit the utilization of existing deferred tax assets. On the basis of this evaluation, as of September 30, 2018, a valuation allowance of $36.4 million remains recorded to recognize only the portion of the deferred tax asset that is more likely than not to be realized. The valuation allowance is based on the Company’s existing positive and negative evidence. The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased based on the Company’s future operating results. The Company reported total income tax benefit of $7.9 million and expense of $1.6 million for the three months ended September 30, 2018 and 2017, respectively and reported total income tax benefit of $57.9 million and $16.4 million for the nine months ended September 30, 2018 and 2017, respectively. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. For federal tax purposes, the Company’s 2014 through 2017 tax years remain open for examination by the tax authorities under the normal three year statute of limitations. Generally, for state tax purposes, the Company’s 2014 through 2017 tax years remain open for examination by the tax authorities under a three year statute of limitations. Should the Company utilize any of its U.S. or state loss carryforwards, their carryforward losses, which date back to 1995, would be subject to examination. As of September 30, 2018, the Company recorded gross unrecognized tax benefits of $30.1 million, all of which, if recognized, would affect the Company’s effective tax rate. Interest and penalties related to income tax liabilities, if incurred, are included in income tax benefit (expense) in the condensed consolidated statement of operations. The Company has accrued gross interest and penalties of $1.8 million. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues are addressed in the Company’s tax audits in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. Unrecognized tax benefits consist primarily of tax positions related to issues associated with the Restructuring of WOW Finance and the acquisition of Knology, Inc. Depending on the resolution with certain state taxing authorities that is expected to occur within the next twelve months, there could be an adjustment to the Company’s unrecognized tax benefits for certain state tax matters. The Company is not currently under examination for U.S. federal income tax purposes, but does have various open tax controversy matters with various state taxing authorities. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 15. Commitments and Contingencies In June and July of 2018, putative class action complaints were filed in the Supreme Court of the State of New York and Colorado State Court against WideOpenWest, Inc. and certain of the Company’s current and former officers and directors, as well as Crestview Advisors, LLC (“Crestview”), Avista Capital Partners (“Avista”), and each of the underwriter banks involved with the Company’s IPO. The complaints allege violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 in connection with the IPO. The plaintiffs seek to represent a class of stockholders who purchased stock pursuant to or traceable to the IPO. The complaint seeks unspecified monetary damages and other relief. The Company believes the complaint and allegations to be without merit and intends to vigorously defend itself against these actions. The Company is unable at this time to determine whether the outcome of the litigation would have a material impact on our results of operations, financial condition, or cash flows. On March 7, 2018, Sprint Communications Company L.P (“Sprint”) filed complaints in the U.S. District Court for the District of Delaware alleging that the Company (and other industry participants) infringe patents purportedly relating to Sprint’s Voice over Internet Protocol (“VoIP”) services. The lawsuit is part of a pattern of litigation that was initiated as far back as 2007 by Sprint against numerous broadband and telecommunications providers. The Company has multiple legal and contractual defenses and will vigorously defend against the claims. Although the outcome of the matter cannot be predicted and the impact of the final resolution of this matter on the Company’s results of operations in any particular subsequent reporting period is not known at this time, management does not believe that the ultimate resolution of the matter will have a material adverse effect on the operations or financial position of the Company or the ability of the Company to meet its financial obligations as they become due. The Company is also party to various legal proceedings (including individual, class and putative class actions) arising in the normal course of its business covering a wide range of matters and types of claims including, but not limited to, general contracts, billing disputes, rights of access, programming, taxes, fees and surcharges, consumer protection, trademark and patent infringement, employment, regulatory, tort, claims of competitors and disputes with other carriers. In accordance with GAAP, the Company accrues an expense for pending litigation when it determines that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. Legal defense costs are expensed as incurred. None of the Company’s existing accruals for pending matters are material. The Company regularly monitors its pending litigation for the purpose of adjusting its accruals and revising its disclosures accordingly, in accordance with GAAP, when required. Litigation is, however, subject to uncertainty, and the outcome of any particular matter is not predictable. The Company vigorously defends its interests in pending litigation, and as of this date, the Company believes that the ultimate resolution of all such matters, after considering insurance coverage or other indemnities to which it is entitled, will not have a material adverse effect on its condensed consolidated financial position, results of operations, or cash flows. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions | |
Related Party Transactions | Note 16. Related Party Transactions Prior to the Company’s IPO, the Company paid a quarterly management fee of $0.4 million plus travel and miscellaneous expenses, if any, to Avista and Crestview, majority owners of the Company’s former Parent. In addition, pursuant to a consulting agreement dated as of December 18, 2015 by and among former Parent, Avista and Crestview, Crestview is entitled to 50% of any management fee actually received by Avista. The obligation to pay such fees terminated in connection with the IPO. The management fee paid by the Company for the nine months ended September 30, 2018 and 2017 amounted to $nil and $1.0 million, respectively. As of September 30, 2018, approximately 66% of the Company’s outstanding common shares were held by Avista and Crestview. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events | |
Subsequent Events | Note 17. Subsequent Event On October 10, 2018, the Company’s network infrastructure in the Panama City, FL market was impacted by Hurricane Michael. The Company is currently directing its resources toward remediation efforts to restore services to approximately 30,000 affected customers, which may take some time. It is not possible at this time to estimate the impact that the storm and the required remediation may have on the Company’s operating results for the fourth quarter of 2018. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation Subsequent to the Restructuring, the financial statements and notes to financial statements presented herein include the consolidated accounts of WOW and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company operates as one operating segment. Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation with no effect on the Company’s previously reported results of operations, financial position, or cash flows. Certain employees of WOW participated in equity plans administered by the Company’s former Parent. Because the management units from the equity plan were issued from the former Parent’s ownership structure, the management units’ value directly correlated to the results of WOW, as the primary asset of the former Parent’s investment in WOW. The management units for the equity plan have been “pushed down” to the Company, as the management units had been utilized as equity-based compensation for WOW management. Immediately prior to the Company’s IPO, these management units were cancelled. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”); however, in our opinion, the disclosures made are adequate to make the information presented not misleading. The year-end consolidated balance sheet was derived from audited financial statements. In the opinion of management, all normally recurring adjustments considered necessary for the fair presentation of the financial statements have been included, and the financial statements present fairly the financial position and results of operations for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results expected for the full year or any future period. These unaudited condensed consolidated financial statements should be read in conjunction with the 2017 Annual Report filed with the SEC on March 14, 2018. |
Use of Estimates | Use of Estimates The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP. These accounting principles require management to make assumptions and estimates that affect the reported amounts and disclosures of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts and disclosures of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances. To the extent there are differences between those estimates and actual results, the unaudited condensed consolidated financial statements may be materially affected. |
Recently Issued Accounting Standards and Recently Adopted Accounting Pronouncements | Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”). Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018 (January 1, 2019 for the Company). ASU 2016-02 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, ASU 2018-10, Codification Improvements to Topic 842, Leases, and ASU 2018-11, Targeted Improvements (“ASU 2018-11”). The Company will adopt the new guidance on the effective date of January 1, 2019 and use the adoption date as the date of initial application as allowed under ASU 2018-11. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the ‘package of practical expedients’, which permits the Company not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs, and the practical expedient pertaining to land easements, which allows the Company to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under current Topic 840. The Company does not expect to elect the use-of-hindsight transition practical expedient. The Company’s adoption process of ASU 2016-02 is ongoing, including evaluating and quantifying the impact on the financial statements, identifying the population of leases, implementing a selected technology solution and collecting and validating lease data. While the Company continues to assess all of the effects of adoption, the Company currently believes the most significant effects relate to the recognition of new right-of-use assets and lease liabilities on the balance sheet for real estate operating leases, and providing significant new disclosures about the Company’s leasing activities. The new standard also provides practical expedients for the Company’s ongoing accounting. The Company expects to elect the short-term lease recognition exemption for all leases that qualify, meaning the Company will not recognize right-of-use assets or lease liabilities for existing and new lease agreements that qualify. The Company also expects to elect the practical expedient to not separate lease and non-lease components for all of its leases, including those for which the Company is a lessee and those for which it is a lessor. ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (“ASU 2018-15”), which requires a customer in a hosting arrangement that is a service contract to apply the guidance on internal-use software to determine which implementation costs to recognize as an asset and which costs to expense. Costs to develop or obtain internal-use software that cannot be capitalized under Subtopic 350-40, Internal-Use Software, such as training costs and certain data conversion costs, also cannot be capitalized for a hosting arrangement that is a service contract. The amendments require a customer in a hosting arrangement that is a service contract to determine whether an implementation activity relates to the preliminary project stage, the application development stage, or the post-implementation stage. Costs for implementation activities in the application development stage will be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages will be expensed immediately. ASU 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the timing of adopting this guidance and the impact of adoption on its financial position, results of operations and cash flows. Recently Adopted Accounting Pronouncements ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). ASC 606 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity is required to follow five steps which are comprised of (a) identifying the contract(s) with a customer; (b) identifying the performance obligations in the contract; (c) determining the transaction price; (d) allocating the transaction price to the performance obligations in the contract and (e) recognizing revenue when (or as) the entity satisfies a performance obligation. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective transition method and recorded the cumulative effect to the Company’s opening accumulated deficit of $9.1 million, net of tax, representing: (i) the recognition of a contract liability associated with “open” or “non-completed” month-to-month and fixed term service contracts containing fees for installation related activities, (ii) the recognition of an asset for costs of obtaining contracts with customers, associated with “open” or “non-completed” month-to-month and fixed term service contracts, and (iii) the income tax impacts of items (i) and (ii) above. A completed contract is defined in ASC 606 as a contract for which the Company has recognized all or substantially all of the revenue under the previous revenue recognition rules. In addition to applying the new revenue recognition rules under ASC 606 only to open or non-completed contracts, the Company has elected to apply the practical expedient related to contract modifications and have not separately evaluated the effects of contract modifications prior to January 1, 2018 in determining the adjustment to the Company’s opening accumulated deficit. Prior to the adoption of ASC 606, the Company recognized revenue related to installation activities upfront to the extent of direct selling costs, which generally resulted in recognition of revenue when the installation related activities had been provided to the customer. Under ASC 606, the majority of the Company’s installation related activities are not considered to be separate performance obligations and non-refundable upfront fees related to installations are assessed to determine whether they provide the customer with a material right. Following the adoption of ASC 606, the Company began recognizing upfront fees for installation related activities as revenue (i) over the period which the customer is expected to benefit from the ability to avoid paying an additional fee upon renewal for month-to-month residential subscription service contracts and (ii) over the term of the contract for business subscription service contracts. In addition, the Company began recognizing an asset for costs associated with obtaining contracts with customers, including sales commissions, and amortizing these costs over the expected period of benefit. The following tables summarize the impacts of adopting ASC 606 on the Company’s condensed consolidated balance sheet and statements of operations as of and for the three and nine months ended September 30, 2018. Condensed Consolidated Balance Sheet As of September 30, 2018 Without adoption of As reported Adjustments Topic 606 (in millions) Assets Current assets: Prepaid expenses and other $ 19.1 $ (5.0) $ 14.1 Total current assets 136.1 (5.0) 131.1 Other noncurrent assets 32.9 (18.1) 14.8 Total assets $ 2,250.8 $ (23.1) $ 2,227.7 Liabilities and Stockholders’ Deficit Current liabilities: Current portion of unearned service revenue $ 50.1 $ (3.5) $ 46.6 Total current liabilities 204.6 (3.5) 201.1 Deferred income taxes, net 161.6 (0.2) 161.4 Other noncurrent liabilities 8.9 (0.6) 8.3 Total liabilities 2,650.1 (4.3) 2,645.8 Accumulated deficit (638.3) (18.8) (657.1) Total stockholders’ deficit (399.3) (18.8) (418.1) Total liabilities and stockholders’ deficit $ 2,250.8 $ (23.1) $ 2,227.7 Condensed Consolidated Statements of Operations Three months ended September 30, 2018 Nine months ended September 30, 2018 Without Without adoption of adoption of As reported Adjustments Topic 606 As reported Adjustments Topic 606 (in millions) Revenue $ 291.6 $ — $ 291.6 $ 868.4 $ (2.0) $ 866.4 Costs and expenses: Selling, general and administrative 37.0 (4.3) 32.7 116.4 (11.7) 104.7 234.5 (4.3) 230.2 978.2 (11.7) 966.5 Income (loss) from operations 57.1 4.3 61.4 (109.8) 9.7 (100.1) Income (loss) before provision for income taxes 22.6 4.3 26.9 (204.9) 9.7 (195.2) Net income (loss) $ 30.5 $ 4.3 $ 34.8 $ (147.0) $ 9.7 $ (137.3) ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which changes the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. ASU 2017-12 eliminates the concept of separately recognizing periodic hedge ineffectiveness for cash flow and net investment hedges. ASU 2017-12 is effective for public companies for fiscal years beginning after December 15, 2018; however, the Company elected to early adopt this ASU in the second quarter of 2018 in conjunction with entering into an interest rate derivative instrument. The adoption of this pronouncement did not have a material impact on the Company’s financial position, results of operations or cash flows. ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The Company early adopted this standard in the fourth quarter of 2017 in conjunction with its annual goodwill impairment assessment. ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 eliminates the current prohibition on the recognition of the income tax effects on the transfer of assets among subsidiaries. After adoption of this ASU, the income tax effects associated with these transfers, except for the transfer of inventory, will be recognized in the period the asset is transferred versus the current deferral and recognition upon either the sale of the asset to a third party or the remaining useful life of the asset. The standard became effective for the Company beginning January 1, 2018, and requires any deferred taxes not yet recognized on intra-entity transfers to be recorded to retained earnings under a modified retrospective approach. The adoption of this pronouncement did not have a material impact on the Company’s financial position, results of operations or cash flows. ASU 2016-15, Statement of Cash Flows (Topic 230) In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) (“ASU 2016-15”), making changes to the classification of certain cash receipts and cash payments in order to reduce diversity in presentation. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The update addresses eight specific cash flow issues, of which only one is applicable to the Company's financial statements. The adoption of this pronouncement did not have a material impact on the Company’s financial position, results of operations or cash flows. ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which amends the recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 contains several amendments of which only the amendment to present financial assets and financial liabilities by measurement category and form of financial asset applies to the Company. The adoption of this pronouncement did not have a material impact on the Company’s financial position, results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Significant Accounting Policies | |
Summary of impacts of adopting ASC 606 on condensed consolidated balance sheet and statements of operations | Condensed Consolidated Balance Sheet As of September 30, 2018 Without adoption of As reported Adjustments Topic 606 (in millions) Assets Current assets: Prepaid expenses and other $ 19.1 $ (5.0) $ 14.1 Total current assets 136.1 (5.0) 131.1 Other noncurrent assets 32.9 (18.1) 14.8 Total assets $ 2,250.8 $ (23.1) $ 2,227.7 Liabilities and Stockholders’ Deficit Current liabilities: Current portion of unearned service revenue $ 50.1 $ (3.5) $ 46.6 Total current liabilities 204.6 (3.5) 201.1 Deferred income taxes, net 161.6 (0.2) 161.4 Other noncurrent liabilities 8.9 (0.6) 8.3 Total liabilities 2,650.1 (4.3) 2,645.8 Accumulated deficit (638.3) (18.8) (657.1) Total stockholders’ deficit (399.3) (18.8) (418.1) Total liabilities and stockholders’ deficit $ 2,250.8 $ (23.1) $ 2,227.7 Condensed Consolidated Statements of Operations Three months ended September 30, 2018 Nine months ended September 30, 2018 Without Without adoption of adoption of As reported Adjustments Topic 606 As reported Adjustments Topic 606 (in millions) Revenue $ 291.6 $ — $ 291.6 $ 868.4 $ (2.0) $ 866.4 Costs and expenses: Selling, general and administrative 37.0 (4.3) 32.7 116.4 (11.7) 104.7 234.5 (4.3) 230.2 978.2 (11.7) 966.5 Income (loss) from operations 57.1 4.3 61.4 (109.8) 9.7 (100.1) Income (loss) before provision for income taxes 22.6 4.3 26.9 (204.9) 9.7 (195.2) Net income (loss) $ 30.5 $ 4.3 $ 34.8 $ (147.0) $ 9.7 $ (137.3) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contracts with Customers | |
Schedule of revenue by service offering | Three months ended September 30, 2018 Nine months ended September 30, 2018 (in millions) Residential Business Total Residential Business Total Subscription Subscription Revenue Subscription Subscription Revenue HSD $ 100.2 $ 18.8 $ 119.0 $ 293.5 $ 54.7 $ 348.2 Video 115.8 3.5 119.3 353.6 10.6 364.2 Telephony 18.3 10.7 29.0 56.5 31.7 88.2 Total subscription services revenue $ 234.3 $ 33.0 $ 267.3 $ 703.6 $ 97.0 $ 800.6 Other business services revenue (a) — — 6.6 — — 20.6 Other revenue — — 17.7 — — 47.2 Total revenue $ 234.3 $ 33.0 $ 291.6 $ 703.6 $ 97.0 $ 868.4 (a) Includes wholesale and collocation revenue of $5.0 million and $16.0 million for the three and nine months ended September 30, 2018, respectively. |
Summary of expected revenue to be recognized in future periods related to performance obligations which have not been satisfied or are partially unsatisfied | A summary of expected commercial revenue to be recognized in future periods related to performance obligations which have not been satisfied or are partially unsatisfied as of September 30, 2018 is set forth in the table below: 2018 2019 2020 Thereafter Total (in millions) Subscription services $ 22.6 $ 64.7 $ 33.6 $ 14.8 $ 135.7 Other business services 1.3 4.3 1.1 0.7 7.4 Total expected revenue $ 23.9 $ 69.0 $ 34.7 $ 15.5 $ 143.1 |
Plant, Property and Equipment_2
Plant, Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Plant, Property and Equipment, Net | |
Schedule of plant, property and equipment | September 30, December 31, 2018 2017 (in millions) Distribution facilities $ 1,489.2 $ 1,373.6 Customer premise equipment 439.5 414.5 Head-end equipment 320.2 320.4 Telephony infrastructure 90.7 92.4 Computer equipment and software 124.1 107.6 Vehicles 35.7 36.0 Buildings and leasehold improvements 46.0 44.6 Office and technical equipment 32.9 32.8 Land 6.2 6.2 Construction in progress (including material inventory and other) 138.8 95.2 Total plant, property and equipment 2,723.3 2,523.3 Less accumulated depreciation (1,725.6) (1,598.6) $ 997.7 $ 924.7 |
Franchise Operating Rights & _2
Franchise Operating Rights & Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Franchise Operating Rights & Goodwill | |
Schedule of changes in the carrying amounts of franchise operating rights and goodwill | December 31, September 30, 2017 Acquisitions Sales Impairment 2018 (in millions) Franchise operating rights $ 952.4 $ — $ — $ 143.2 $ 809.2 Goodwill 384.1 — — 113.2 270.9 $ 1,336.5 $ — $ — $ 256.4 $ 1,080.1 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accrued Liabilities and Other | |
Schedule of accrued liabilities and other | September 30, December 31, 2018 2017 (in millions) Programming costs $ 34.5 $ 32.2 Franchise and revenue sharing fees 11.4 12.2 Payroll and employee benefits 15.5 11.5 Property, income, sales and use taxes 8.0 18.9 Utility pole rentals 3.5 1.5 Other accrued liabilities 18.0 18.2 $ 90.9 $ 94.5 |
Long-Term Debt and Capital Le_2
Long-Term Debt and Capital Leases (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Long-Term Debt and Capital Leases | |
Summary of long-term debt and capital leases | December 31, September 30, 2018 2017 Available borrowing Effective Outstanding Outstanding capacity interest rate (1) balance balance (in millions) Long-term debt: Term B Loans, net(2) $ — 5.5 % $ 2,246.0 $ 2,261.4 Revolving Credit Facility(3) 234.6 5.2 % 60.0 — Total long-term debt $ 234.6 2,306.0 2,261.4 Capital lease obligations 4.3 2.8 Total long-term debt and capital lease obligations 2,310.3 2,264.2 Debt issuance costs, net(4) (11.1) (13.0) Sub-total 2,299.2 2,251.2 Less current portion (24.2) (24.0) Long-term portion $ 2,275.0 $ 2,227.2 (1) Represents the effective interest rate in effect for all borrowings outstanding as of September 30, 2018 pursuant to each debt instrument including the applicable margin. (2) At September 30, 2018 includes $11.2 million of net discounts. (3) Available borrowing capacity at September 30, 2018 represents $ 300.0 million of total availability less borrowing of $60.0 million on the Revolving Credit Facility and outstanding letters of credit of $ 5.4 million. Letters of credit are used in the ordinary course of business and are released when the respective contractual obligations have been fulfilled by the Company. (4) At September 30, 2018, debt issuance costs include $ 8.1 million related to Term B Loans and $ 3.0 million related to the Revolving Credit Facility. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity | |
Schedule of purchase of common stock | Three months ended Nine months ended September 30, 2018 September 30, 2018 Share buybacks 1,447,600 7,098,637 Income tax withholding 11,265 319,030 1,458,865 7,417,667 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stock-Based Compensation | |
Summary of the restricted stock awards activity | The following table summarizes the restricted stock activity during the nine months ended September 30, 2018. Number of Restricted Stock Shares Outstanding January 1, 2018 1,914,570 Granted 2,074,469 Cancelled — Vested (1,196,833) Forfeited (388,694) Outstanding September 30, 2018 (1) 2,403,512 (1) The total outstanding non-vested shares of restricted stock awards granted to employees and directors are included in total outstanding shares as of September 30, 2018. |
Earnings (Loss) per Common Sh_2
Earnings (Loss) per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings (Loss) per Common Share | |
Schedule of computation of income per share | Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 (in millions, except for per share data) Net income (loss) $ 30.5 $ (2.1) $ (147.0) $ 75.3 Basic weighted-average shares 80,663,128 86,973,345 82,319,223 76,014,568 Effect of dilutive securities: Restricted stock awards 906,045 — — 81,833 Diluted weighted-average shares 81,569,173 86,973,345 82,319,223 76,096,401 Basic net income (loss) per share $ 0.38 $ (0.02) $ (1.79) $ 0.99 Diluted net income (loss) per share $ 0.37 $ (0.02) $ (1.79) $ 0.99 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements | |
Summary of financial assets and liabilities measured at fair value on a recurring basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2018. Level 1 Level 2 Level 3 Total Financial Assets (in millions) Interest rate swaps (1) $ — $ $ — $ Total $ — $ $ — $ Financial Liabilities Interest rate swaps (1) $ — $ 2.0 $ — $ 2.0 Long-term debt (2) — 2,206.4 — 2,206.4 Total $ — $ 2,208.4 $ — $ 2,208.4 (1) Measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curves as of September 30, 2018. The present value calculation uses discount rates that have been adjusted to reflect the credit quality of the Company and its counterparties. (2) Measured based on dealer quotes considering current market rates for the Company’s credit facility. The ratio of the Company’s aggregate debt balance has trended from quoted market prices in active markets to quoted prices in non-active markets. Debt fair value does not include debt issuance costs and discount. |
Interest Rate Hedge (Tables)
Interest Rate Hedge (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Interest Rate Hedge | |
Schedule of notional amounts, fair values and classification of outstanding derivatives | September 30, 2018 Fair Value Fair Value Accrued Derivative Notional Non-Current Liabilities Classification Amount Other Assets and Other Derivatives Designated as Hedging Instruments (in millions) Interest rate swap contracts Cash Flow $ 1,354.3 $ 7.2 $ 2.0 |
Schedule of gains and losses on derivatives | Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Interest rate swap contracts(1) (in millions) Gain recorded in AOCI on derivatives $ 6.0 $ — $ 5.4 $ — Gain (loss) reclassified from AOCI into income — — — — (1) Losses on derivatives reclassified from AOCI into income will be included in “Interest expense” in the condensed consolidated statements of operations, the same income statement line item as the earnings effect of the hedged item. |
General Information (Details)
General Information (Details) | 9 Months Ended |
Sep. 30, 2018item | |
General Information | |
Number of markets in which high-speed data, video, and telephony services are provided | 19 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Consolidation and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2018segment | |
Principles of Consolidation and Basis of Presentation | |
Number of operating segments | 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - ASC 606 Practical Expedient (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue from Contracts with Customers | |||
Accumulated deficit | $ (638.3) | $ (500.4) | |
Revenue, Practical Expedient, Initial Application and Transition, Nonrestatement of Modified Contract | true | ||
ASU 2014-09 | Adjustments | |||
Revenue from Contracts with Customers | |||
Accumulated deficit | $ 18.8 | $ 9.1 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - ASC 606 Impact on Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Current assets: | |||
Prepaid expenses and other | $ 19.1 | $ 12.2 | |
Total current assets | 136.1 | 165.2 | |
Other noncurrent assets | 32.9 | 9.7 | |
Total assets | 2,250.8 | 2,441.6 | |
Current liabilities | |||
Current portion of unearned service revenue | 50.1 | 43.2 | |
Total current liabilities | 204.6 | 191.4 | |
Deferred income taxes, net | 161.6 | 220.4 | |
Other noncurrent liabilities | 8.9 | 7 | |
Total liabilities | 2,650.1 | 2,646 | |
Accumulated deficit | (638.3) | (500.4) | |
Total stockholders' deficit | (399.3) | (204.4) | |
Total liabilities and stockholders’ deficit | 2,250.8 | $ 2,441.6 | |
ASU 2014-09 | Adjustments | |||
Current assets: | |||
Prepaid expenses and other | 5 | ||
Total current assets | 5 | ||
Other noncurrent assets | 18.1 | ||
Deferred contract costs | 23.1 | ||
Current liabilities | |||
Current portion of unearned service revenue | 3.5 | ||
Total current liabilities | 3.5 | ||
Deferred income taxes, net | 0.2 | ||
Other noncurrent liabilities | 0.6 | ||
Total liabilities | 4.3 | ||
Accumulated deficit | 18.8 | $ 9.1 | |
Total stockholders' deficit | 18.8 | ||
Total liabilities and stockholders’ deficit | 23.1 | ||
ASU 2014-09 | Without adoption of Topic 606 | |||
Current assets: | |||
Prepaid expenses and other | 14.1 | ||
Total current assets | 131.1 | ||
Other noncurrent assets | 14.8 | ||
Total assets | 2,227.7 | ||
Current liabilities | |||
Current portion of unearned service revenue | 46.6 | ||
Total current liabilities | 201.1 | ||
Deferred income taxes, net | 161.4 | ||
Other noncurrent liabilities | 8.3 | ||
Total liabilities | 2,645.8 | ||
Accumulated deficit | (657.1) | ||
Total stockholders' deficit | (418.1) | ||
Total liabilities and stockholders’ deficit | $ 2,227.7 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - ASC 606 Impact on Statement Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue | ||||
Revenue | $ 291.6 | $ 297.8 | $ 868.4 | $ 895.3 |
Costs and expenses: | ||||
Selling, general and administrative | 37 | 38.1 | 116.4 | 100.9 |
Total costs and expenses | 234.5 | 240.3 | 978.2 | 722.4 |
Income (loss) from operations | 57.1 | 57.5 | (109.8) | 172.9 |
Income (loss) before provision for income taxes | 22.6 | (0.5) | (204.9) | 58.9 |
Net income (loss) | 30.5 | $ (2.1) | (147) | $ 75.3 |
ASU 2014-09 | Adjustments | ||||
Revenue | ||||
Revenue | 2 | |||
Costs and expenses: | ||||
Selling, general and administrative | 4.3 | 11.7 | ||
Total costs and expenses | 4.3 | 11.7 | ||
Income (loss) from operations | (4.3) | (9.7) | ||
Income (loss) before provision for income taxes | (4.3) | (9.7) | ||
Net income (loss) | (4.3) | (9.7) | ||
ASU 2014-09 | Without adoption of Topic 606 | ||||
Revenue | ||||
Revenue | 291.6 | 866.4 | ||
Costs and expenses: | ||||
Selling, general and administrative | 32.7 | 104.7 | ||
Total costs and expenses | 230.2 | 966.5 | ||
Income (loss) from operations | 61.4 | (100.1) | ||
Income (loss) before provision for income taxes | 26.9 | (195.2) | ||
Net income (loss) | $ 34.8 | $ (137.3) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Services Length (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Business Subscription | |
Revenue from Contracts with Customers | |
Subscription services, contract term | 30 months |
Minimum | Residential Subscription | |
Revenue from Contracts with Customers | |
Subscription services, contract term | 12 months |
Maximum | Residential Subscription | |
Revenue from Contracts with Customers | |
Subscription services, contract term | 24 months |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Revenue by Service Offering (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue from Contracts with Customers | ||||
Total revenue | $ 291.6 | $ 297.8 | $ 868.4 | $ 895.3 |
Subscription services | ||||
Revenue from Contracts with Customers | ||||
Revenue | 267.3 | 800.6 | ||
HSD | ||||
Revenue from Contracts with Customers | ||||
Revenue | 119 | 348.2 | ||
Video | ||||
Revenue from Contracts with Customers | ||||
Revenue | 119.3 | 364.2 | ||
Telephony | ||||
Revenue from Contracts with Customers | ||||
Revenue | 29 | 88.2 | ||
Other business services | ||||
Revenue from Contracts with Customers | ||||
Revenue | 6.6 | 20.6 | ||
Other business services - Wholesale and collocation revenue | ||||
Revenue from Contracts with Customers | ||||
Revenue | 5 | 16 | ||
Other services | ||||
Revenue from Contracts with Customers | ||||
Other revenue | 17.7 | 47.2 | ||
Residential Subscription | ||||
Revenue from Contracts with Customers | ||||
Total revenue | 234.3 | 703.6 | ||
Residential Subscription | Subscription services | ||||
Revenue from Contracts with Customers | ||||
Revenue | 234.3 | 703.6 | ||
Residential Subscription | HSD | ||||
Revenue from Contracts with Customers | ||||
Revenue | 100.2 | 293.5 | ||
Residential Subscription | Video | ||||
Revenue from Contracts with Customers | ||||
Revenue | 115.8 | 353.6 | ||
Residential Subscription | Telephony | ||||
Revenue from Contracts with Customers | ||||
Revenue | 18.3 | 56.5 | ||
Business Subscription | ||||
Revenue from Contracts with Customers | ||||
Total revenue | 33 | 97 | ||
Business Subscription | Subscription services | ||||
Revenue from Contracts with Customers | ||||
Revenue | 33 | 97 | ||
Business Subscription | HSD | ||||
Revenue from Contracts with Customers | ||||
Revenue | 18.8 | 54.7 | ||
Business Subscription | Video | ||||
Revenue from Contracts with Customers | ||||
Revenue | 3.5 | 10.6 | ||
Business Subscription | Telephony | ||||
Revenue from Contracts with Customers | ||||
Revenue | $ 10.7 | $ 31.7 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Costs of Obtaining Contracts (Details) $ in Millions | Sep. 30, 2018USD ($) |
Prepaid expenses and other | |
Costs of Obtaining Contracts with Customers | |
Current portion of costs of obtaining contracts with customers | $ 5 |
Other noncurrent assets | |
Costs of Obtaining Contracts with Customers | |
Non-current portion of costs of obtaining contracts with customers | $ 18.1 |
Residential Subscription | Minimum | |
Costs of Obtaining Contracts with Customers | |
Costs of contracts with customers, amortization period | 3 years |
Residential Subscription | Maximum | |
Costs of Obtaining Contracts with Customers | |
Costs of contracts with customers, amortization period | 4 years |
Business Subscription | Minimum | |
Costs of Obtaining Contracts with Customers | |
Costs of contracts with customers, amortization period | 6 years |
Business Subscription | Maximum | |
Costs of Obtaining Contracts with Customers | |
Costs of contracts with customers, amortization period | 7 years |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Contract Liabilities (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Unearned service revenue | |
Costs of Obtaining Contracts with Customers | |
Current portion of unearned service revenue | $ 3.5 |
Other noncurrent liabilities | |
Costs of Obtaining Contracts with Customers | |
Non-current portion of contract liabilities | $ 0.6 |
Residential Subscription | |
Costs of Obtaining Contracts with Customers | |
Contract liability, term of contract | 5 months |
Business Subscription | |
Costs of Obtaining Contracts with Customers | |
Contract liability, term of contract | 30 days |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Unsatisfied Performance Obligations Amount (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Unsatisfied Performance Obligations | |
Revenue, Practical Expedient, Remaining Performance Obligation | true |
Expected revenue to be recognized in future periods | $ 143.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 23.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 69 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 34.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 15.5 |
Subscription services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 135.7 |
Subscription services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 22.6 |
Subscription services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 64.7 |
Subscription services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 33.6 |
Subscription services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 14.8 |
Other business services | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 7.4 |
Other business services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 1.3 |
Other business services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 4.3 |
Other business services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | 1.1 |
Other business services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Unsatisfied Performance Obligations | |
Expected revenue to be recognized in future periods | $ 0.7 |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Unsatisfied Performance Obligations Period (Details) | Sep. 30, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | |
Subscription services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | 3 months |
Subscription services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Subscription services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Subscription services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | |
Other business services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | 3 months |
Other business services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Other business services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations | 1 year |
Other business services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Unsatisfied Performance Obligations | |
Expected period to recognize revenue of remaining performance obligations |
Plant, Property and Equipment_3
Plant, Property and Equipment, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Plant, Property and Equipment, Net | |||||
Total plant, property and equipment | $ 2,723.3 | $ 2,723.3 | $ 2,523.3 | ||
Less accumulated depreciation | (1,725.6) | (1,725.6) | (1,598.6) | ||
Plant, Property and Equipment, Net | 997.7 | 997.7 | 924.7 | ||
Depreciation expense | 46.1 | $ 48.4 | 137.8 | $ 148.6 | |
Gains (losses) on write offs or sales of head-end and customer premise equipment | 0.3 | $ 0 | 0.5 | $ 0.3 | |
Distribution facilities | |||||
Plant, Property and Equipment, Net | |||||
Total plant, property and equipment | 1,489.2 | 1,489.2 | 1,373.6 | ||
Customer premise equipment | |||||
Plant, Property and Equipment, Net | |||||
Total plant, property and equipment | 439.5 | 439.5 | 414.5 | ||
Head-end equipment | |||||
Plant, Property and Equipment, Net | |||||
Total plant, property and equipment | 320.2 | 320.2 | 320.4 | ||
Telephony infrastructure | |||||
Plant, Property and Equipment, Net | |||||
Total plant, property and equipment | 90.7 | 90.7 | 92.4 | ||
Computer equipment and software | |||||
Plant, Property and Equipment, Net | |||||
Total plant, property and equipment | 124.1 | 124.1 | 107.6 | ||
Vehicles | |||||
Plant, Property and Equipment, Net | |||||
Total plant, property and equipment | 35.7 | 35.7 | 36 | ||
Buildings and leasehold improvements | |||||
Plant, Property and Equipment, Net | |||||
Total plant, property and equipment | 46 | 46 | 44.6 | ||
Office and technical equipment | |||||
Plant, Property and Equipment, Net | |||||
Total plant, property and equipment | 32.9 | 32.9 | 32.8 | ||
Land | |||||
Plant, Property and Equipment, Net | |||||
Total plant, property and equipment | 6.2 | 6.2 | 6.2 | ||
Construction in progress (including material inventory and other) | |||||
Plant, Property and Equipment, Net | |||||
Total plant, property and equipment | $ 138.8 | $ 138.8 | $ 95.2 |
Asset Sales (Details)
Asset Sales (Details) - USD ($) $ in Millions | Aug. 01, 2017 | Jan. 12, 2017 | Sep. 30, 2017 | Sep. 30, 2018 |
Asset Sales | ||||
Net proceeds from sale of assets | $ 213 | |||
Gain on sale of assets | $ 38.4 | |||
Chicago Fiber Network | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Asset Sales | ||||
Total assets | $ 23.5 | |||
MidCo | Lawrence, Kansas System | Disposal Group Disposed of by Sale, Not Discontinued Operations | ||||
Asset Sales | ||||
Net proceeds from sale of assets | $ 213 | |||
Gain on sale of assets | $ 38.4 | |||
Period of time in which results are included in financial statements | 12 days | |||
Verizon | Chicago Fiber Network | Disposal Group Disposed of by Sale, Not Discontinued Operations | ||||
Asset Sales | ||||
Proceeds from agreement | $ 225 | |||
Agreement amount for build-out of network | $ 50 |
Franchise Operating Rights & _3
Franchise Operating Rights & Goodwill - Franchise Operating Rights and Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Franchise operating rights | |
Balance at the beginning of the period | $ 952.4 |
Impairment | 143.2 |
Balance at the end of the period | 809.2 |
Goodwill | |
Balance at the beginning of the period | 384.1 |
Impairment | 113.2 |
Balance at the end of the period | 270.9 |
Franchise operating rights and goodwill | |
Balance at the beginning of the period | 1,336.5 |
Impairment | 256.4 |
Balance at the end of the period | $ 1,080.1 |
Franchise Operating Rights & _4
Franchise Operating Rights & Goodwill - Impairment (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2018USD ($)segment | Sep. 30, 2018USD ($) | |
Franchise operating rights | ||
Number of reporting units which franchise operating rights were impaired | segment | 4 | |
Impairment of franchise operating rights | $ 143.2 | |
Goodwill | ||
Number of reporting units which goodwill were impaired | segment | 4 | |
Impairment of goodwill | $ 113.2 | |
Panama City, FL | ||
Franchise operating rights | ||
Impairment of franchise operating rights | $ 3.2 | |
Goodwill | ||
Impairment of goodwill | 23.7 | |
Montgomery, AL | ||
Franchise operating rights | ||
Impairment of franchise operating rights | 47.5 | |
Huntsville, AL | ||
Franchise operating rights | ||
Impairment of franchise operating rights | 77.5 | |
Goodwill | ||
Impairment of goodwill | 16.7 | |
Dothan, AL | ||
Franchise operating rights | ||
Impairment of franchise operating rights | 15 | |
Augusta, GA | ||
Goodwill | ||
Impairment of goodwill | 20.2 | |
Chicago, IL | ||
Goodwill | ||
Impairment of goodwill | $ 52.6 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accrued Liabilities and Other | ||
Programming costs | $ 34.5 | $ 32.2 |
Franchise and revenue sharing fees | 11.4 | 12.2 |
Payroll and employee benefits | 15.5 | 11.5 |
Property, income, sales and use taxes | 8 | 18.9 |
Utility pole rentals | 3.5 | 1.5 |
Other accrued liabilities | 18 | 18.2 |
Accrued Liabilities and Other | $ 90.9 | $ 94.5 |
Long-Term Debt and Capital Le_3
Long-Term Debt and Capital Leases - Summary (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Jul. 17, 2017 | May 31, 2017 |
Long-Term Debt and Capital Leases | ||||
Available borrowing capacity | $ 234.6 | |||
Long-term debt | 2,306 | $ 2,261.4 | ||
Capital lease obligations | 4.3 | 2.8 | ||
Total long-term debt and capital lease obligations | 2,310.3 | 2,264.2 | ||
Debt issuance costs, net | (11.1) | (13) | ||
Sub-total | 2,299.2 | 2,251.2 | ||
Less current portion | (24.2) | (24) | ||
Long-term portion | $ 2,275 | 2,227.2 | ||
Term B Loans | ||||
Long-Term Debt and Capital Leases | ||||
Effective interest rate (as a percent) | 5.50% | |||
Long-term debt | $ 2,246 | $ 2,261.4 | ||
Debt issuance costs, net | (8.1) | |||
Net discount | 11.2 | |||
Revolving Credit Facility | ||||
Long-Term Debt and Capital Leases | ||||
Available borrowing capacity | $ 234.6 | |||
Effective interest rate (as a percent) | 5.20% | |||
Long-term debt | $ 60 | |||
Debt issuance costs, net | (3) | |||
Maximum borrowing capacity | 300 | $ 300 | $ 200 | |
Outstanding letters of credit | $ 5.4 |
Long-Term Debt and Capital Le_4
Long-Term Debt and Capital Leases - Term B Loans and Revolving Credit Facility (Details) - USD ($) $ in Millions | Jul. 17, 2017 | May 31, 2017 | Mar. 20, 2017 | Sep. 30, 2018 |
Term B Loans | ||||
Long-Term Debt and Capital Leases | ||||
Debt issued | $ 230.5 | |||
Outstanding balance | $ 2,280 | |||
Term B Loans | Alternate base rate | ||||
Long-Term Debt and Capital Leases | ||||
Basis spread on variable rate (as a percent) | 2.25% | |||
Term B Loans | LIBOR rate | ||||
Long-Term Debt and Capital Leases | ||||
Basis spread on variable rate (as a percent) | 3.25% | |||
Revolving Credit Facility | ||||
Long-Term Debt and Capital Leases | ||||
Additional borrowing capacity | $ 100 | |||
Borrowings available | $ 300 | $ 200 | $ 300 | |
Borrowing capacity upon compliance with conditions | $ 300 | |||
Revolving Credit Facility | Alternate base rate | ||||
Long-Term Debt and Capital Leases | ||||
Basis spread on variable rate (as a percent) | 2.00% | 2.00% | ||
Revolving Credit Facility | LIBOR rate | ||||
Long-Term Debt and Capital Leases | ||||
Basis spread on variable rate (as a percent) | 3.00% | 3.00% | ||
10.25 % Senior Notes | ||||
Long-Term Debt and Capital Leases | ||||
Repayments of long-term debt | $ 729.9 | $ 95.1 |
Long-Term Debt and Capital Le_5
Long-Term Debt and Capital Leases - Senior Notes (Details) - USD ($) $ in Millions | Jul. 17, 2017 | Mar. 20, 2017 | Sep. 30, 2017 | Sep. 30, 2017 |
Long-Term Debt and Capital Leases | ||||
Loss on early extinguishment of debt | $ 26.1 | $ 32.1 | ||
10.25 % Senior Notes | ||||
Long-Term Debt and Capital Leases | ||||
Repayments of long-term debt | $ 729.9 | $ 95.1 | ||
Interest rate (as a percent) | 10.25% | |||
Accrued interest paid | 37.6 | $ 1.7 | ||
Payment of call premium | 4.9 | |||
Loss on early extinguishment of debt | $ 5 | |||
Prepayment fees | 18.7 | |||
Revolving Credit Facility | ||||
Long-Term Debt and Capital Leases | ||||
Proceeds from credit facility used to pay senior note | $ 180 |
Equity - IPO (Details)
Equity - IPO (Details) $ / shares in Units, $ in Millions | May 25, 2017USD ($)$ / sharesshares |
Initial Public Offering | |
Conversion ratio of stock-split | 66,498.762 |
IPO | |
Initial Public Offering | |
Shares issued | shares | 20,970,589 |
Share price (in dollars per share) | $ / shares | $ 17 |
Gross proceeds | $ 356.5 |
Issuance costs | 22.5 |
Proceeds from issuance of common stock, net of issuance costs | $ 334 |
Equity - Common Stock (Details)
Equity - Common Stock (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Aug. 08, 2018 | Mar. 26, 2018 | Sep. 30, 2018 | May 10, 2018 | Dec. 31, 2017 | Dec. 14, 2017 | |
Common Stock | |||||||
Share buybacks | 1,447,600 | 7,098,637 | |||||
Income tax withholding | 11,265 | 319,030 | |||||
Number of shares purchased (in shares) | 1,458,865 | 2,500,000 | 5,100,000 | 7,417,667 | |||
Common stock shares repurchased | 7,878,840 | 7,878,840 | 461,173 | ||||
Purchase of shares | $ 73.2 | ||||||
Maximum | |||||||
Common Stock | |||||||
Common stock repurchase authorized amount | $ 25 | $ 50 |
Stock-Based Compensation - 2017
Stock-Based Compensation - 2017 Plan and Activity (Details) | 9 Months Ended |
Sep. 30, 2018shares | |
Restricted stock awards | |
Restricted Stock Awards | |
Outstanding at the beginning (in shares) | 1,914,570 |
Granted (in shares) | 2,074,469 |
Vested (in shares) | (1,196,833) |
Forfeited (in shares) | (388,694) |
Outstanding at the ending (in shares) | 2,403,512 |
Additional information | |
Replacement awards of 2017 Management Bonus Plan cancelled awards (in shares) | 791,280 |
2017 Plan | |
Plan | |
Number of common stock shares authorized | 6,355,054 |
Minimum | Restricted stock awards | |
Additional information | |
Vesting period | 3 years |
Maximum | Restricted stock awards | |
Additional information | |
Vesting period | 4 years |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Selling, general and administrative expense and operating expenses (excluding depreciation and amortization) | ||||
Stock-Based Compensation | ||||
Non-cash compensation expense | $ 2.1 | $ 5.2 | $ 11 | $ 8.3 |
Earnings (Loss) per Common Sh_3
Earnings (Loss) per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings (Loss) per Common Share | ||||
Net income (loss) | $ 30.5 | $ (2.1) | $ (147) | $ 75.3 |
Basic weighted-average shares | 80,663,128 | 86,973,345 | 82,319,223 | 76,014,568 |
Effect of dilutive securities: | ||||
Restricted stock awards | 906,045 | 81,833 | ||
Diluted weighted-average shares | 81,569,173 | 86,973,345 | 82,319,223 | 76,096,401 |
Basic net income (loss) per share | $ 0.38 | $ (0.02) | $ (1.79) | $ 0.99 |
Diluted net income (loss) per share | $ 0.37 | $ (0.02) | $ (1.79) | $ 0.99 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Financial Liabilities | ||
Transfer of assets from level 1 to level 2 | $ 0 | $ 0 |
Transfer of assets from level 2 to level 1 | 0 | 0 |
Transfer of liabilities from level 1 to level 2 | 0 | 0 |
Transfer of liabilities from level 2 to level 1 | 0 | 0 |
Transfer of assets into level 3 | 0 | 0 |
Transfer of assets out of level 3 | 0 | 0 |
Transfer of liabilities into level 3 | 0 | 0 |
Transfer of liabilities out of level 3 | 0 | 0 |
Recurring | ||
Financial Assets | ||
Total | 7.2 | 7.2 |
Financial Liabilities | ||
Long-term debt | 2,206.4 | 2,206.4 |
Total | 2,208.4 | 2,208.4 |
Recurring | Interest rate swaps | ||
Financial Assets | ||
Financial Assets | 7.2 | 7.2 |
Financial Liabilities | ||
Financial Liabilities | 2 | 2 |
Level 2 | Recurring | ||
Financial Assets | ||
Total | 7.2 | 7.2 |
Financial Liabilities | ||
Long-term debt | 2,206.4 | 2,206.4 |
Total | 2,208.4 | 2,208.4 |
Level 2 | Recurring | Interest rate swaps | ||
Financial Assets | ||
Financial Assets | 7.2 | 7.2 |
Financial Liabilities | ||
Financial Liabilities | $ 2 | $ 2 |
Interest Rate Hedge - Summary (
Interest Rate Hedge - Summary (Details) - Interest rate swaps - Hedging $ in Millions | 9 Months Ended | |
Sep. 30, 2018USD ($)item | May 09, 2018USD ($) | |
Interest Rate Hedge | ||
Notional amount | $ 1,361.2 | |
Number of interest rate swaps | item | 2 | |
Fixed rate (as a percent) | 2.70% | |
Reclassification of losses out of accumulated other comprehensive loss into earnings within next 12 months | $ 2 | |
Term B Loans | ||
Interest Rate Hedge | ||
Fair value of debt | $ 2,257.2 |
Interest Rate Hedge - Notional
Interest Rate Hedge - Notional amounts, fair values and classification (Details) - Interest rate swaps - Hedging - USD ($) $ in Millions | Sep. 30, 2018 | May 09, 2018 |
Derivatives | ||
Notional amount | $ 1,361.2 | |
Cash flow hedging | ||
Derivatives | ||
Notional amount | $ 1,354.3 | |
Cash flow hedging | Other noncurrent assets | ||
Derivatives | ||
Derivative asset, fair value | 7.2 | |
Cash flow hedging | Accrued liabilities and other | ||
Derivatives | ||
Derivative liability, fair value | $ 2 |
Interest Rate Hedge - Gains and
Interest Rate Hedge - Gains and losses on derivatives (Details) - Interest rate swaps - Hedging - Cash flow hedging - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Gains and losses on derivatives | ||
Losses on derivative | $ 2.1 | $ 3.4 |
Gain recorded in AOCI on derivatives | $ 6 | $ 5.4 |
Income Taxes - Income Tax Items
Income Taxes - Income Tax Items (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Taxes | ||||
Valuation allowance | $ 36.4 | $ 36.4 | ||
Income tax benefit (expense) | $ 7.9 | $ (1.6) | $ 57.9 | $ 16.4 |
Income Taxes - Statute of Limit
Income Taxes - Statute of Limitations (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Federal | |
Income Taxes | |
Number of tax years open for examination | 3 years |
State | |
Income Taxes | |
Number of tax years open for examination | 3 years |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) $ in Millions | Sep. 30, 2018USD ($) |
Income Taxes | |
Unrecognized tax benefits, if recognized, would affect effective tax rate | $ 30.1 |
Accrued gross interest and penalties | $ 1.8 |
Related Party Transactions (Det
Related Party Transactions (Details) - Avista and Crestview, majority unit holders of the Parent of the reporting unit - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 18, 2015 | |
Related Party Transactions | |||
Quarterly management fees base rate | $ 0.4 | ||
Percentage of management fees | 50.00% | ||
Payment of management fees | $ 0 | $ 1 | |
Percentage of common shares outstanding held by related party | 66.00% |
Subsequent Events (Details)
Subsequent Events (Details) | Oct. 11, 2018customer |
Subsequent Events. | Hurricane Michael | |
Subsequent Events | |
Number of affected customers | 30,000 |