Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 23, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-09881 | ||
Entity Registrant Name | SHENANDOAH TELECOMMUNICATIONS COMPANY | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 54-1162807 | ||
Entity Address, Address Line One | 500 Shentel Way | ||
Entity Address, City or Town | Edinburg | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22824 | ||
City Area Code | 540 | ||
Local Phone Number | 984-4141 | ||
Title of 12(b) Security | Common Stock (No Par Value) | ||
Trading Symbol | SHEN | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 49,932,073 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.4 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to its 2021 annual meeting of shareholders (the “2021 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2021 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Entity Central Index Key | 0000354963 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 195,397 | $ 101,651 |
Accounts receivable, net of allowance for doubtful accounts of $614 and $533, respectively | 70,393 | 63,641 |
Income taxes receivable | 0 | 10,306 |
Prepaid expenses and other | 9,631 | 11,178 |
Current assets held for sale | 1,133,294 | 55,077 |
Total current assets | 1,408,715 | 241,853 |
Investments | 13,769 | 12,388 |
Property, plant and equipment, net | 440,427 | 363,087 |
Goodwill and Intangible assets, net | 106,759 | 88,241 |
Operating lease right-of-use assets | 50,387 | 42,568 |
Deferred charges and other assets | 11,650 | 9,267 |
Non-current assets held for sale | 0 | 1,141,498 |
Total assets | 2,031,707 | 1,898,902 |
Current liabilities: | ||
Current maturities of long-term debt, net of unamortized loan fees | 688,463 | 31,650 |
Accounts payable | 19,599 | 40,295 |
Advanced billings and customer deposits | 8,594 | 8,358 |
Accrued compensation | 16,413 | 10,075 |
Income taxes payable | 6,951 | 0 |
Current operating lease liabilities | 1,970 | 1,731 |
Accrued liabilities and other | 13,869 | 7,556 |
Current liabilities held for sale | 452,202 | 53,912 |
Total current liabilities | 1,208,061 | 153,577 |
Long-term debt, less current maturities, net of unamortized loan fees | 0 | 688,464 |
Other long-term liabilities: | ||
Deferred income taxes | 150,652 | 137,567 |
Asset retirement obligations | 4,955 | 6,152 |
Benefit plan obligations | 14,645 | 12,675 |
Non-current operating lease liabilities | 46,095 | 42,625 |
Other liabilities | 24,905 | 16,991 |
Total other long-term liabilities | 241,252 | 584,433 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, no par value, authorized 96,000; 49,868 and 49,671 issued and outstanding at December 31, 2020 and 2019, respectively | 0 | 0 |
Additional paid in capital | 47,317 | 42,110 |
Retained earnings | 539,783 | 430,010 |
Accumulated other comprehensive (loss) income, net of taxes | (4,706) | 308 |
Total shareholders’ equity | 582,394 | 472,428 |
Total liabilities and shareholders’ equity | 2,031,707 | 1,898,902 |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | $ 0 | $ 368,423 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 614 | $ 533 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 96,000,000 | 96,000,000 |
Common stock, shares issued (in shares) | 49,868,000 | 49,671,000 |
Common stock, shares outstanding (in shares) | 49,868,000 | 49,671,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues [Abstract] | |||
Service revenue and other | $ 220,775 | $ 206,862 | $ 192,683 |
Operating expenses | |||
Cost of services | 88,203 | 82,949 | 80,418 |
Selling, general and administrative | 85,016 | 77,846 | 70,844 |
Depreciation and amortization | 48,703 | 46,786 | 44,390 |
Total operating expenses | 221,922 | 207,581 | 195,652 |
Operating loss | (1,147) | (719) | (2,969) |
Other income: | |||
Other income, net | 3,187 | 3,280 | 3,703 |
Income before income taxes | 2,040 | 2,561 | 734 |
Income tax (benefit) expense | (586) | 173 | (1,343) |
Income from continuing operations | 2,626 | 2,388 | 2,077 |
Income from discontinued operations, net of tax | 124,097 | 53,568 | 44,518 |
Net income | 126,723 | 55,956 | 46,595 |
Other comprehensive income: | |||
Unrealized (loss) income on interest rate hedge, net of tax | (5,014) | (7,972) | 50 |
Comprehensive income | $ 121,709 | $ 47,984 | $ 46,645 |
Net income per share, basic and diluted: | |||
Basic - Income from continuing operations (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.04 |
Basic - Income from discontinued operations, net of tax (in dollars per share) | 2.49 | 1.07 | 0.90 |
Basic net income per share (in dollars per share) | 2.54 | 1.12 | 0.94 |
Diluted - Income from continuing operations (in dollars per share) | 0.05 | 0.05 | 0.04 |
Diluted - Income from discontinued operations, net of tax (in dollars per share) | 2.48 | 1.07 | 0.89 |
Diluted net income per share (in dollars per share) | $ 2.53 | $ 1.12 | $ 0.93 |
Weighted average shares outstanding, basic (in shares) | 49,901 | 49,811 | 49,542 |
Weighted average shares outstanding, diluted (in shares) | 50,024 | 50,101 | 50,063 |
Cash dividend declared per share (in dollars per share) | $ 0.34 | $ 0.29 | $ 0.27 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Shares of Common Stock (no par value) | Additional Paid in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Dec. 31, 2017 | 49,328,000 | ||||||
Balance at Dec. 31, 2017 | $ 352,207 | $ 44,787 | $ 299,190 | $ 8,230 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 46,595 | 46,595 | |||||
Other comprehensive gain (loss), net of tax | 50 | 50 | |||||
Dividends declared | (13,386) | (13,386) | |||||
Dividends reinvested in common stock (in shares) | 520 | 520 | |||||
Dividends reinvested in common stock | 11,000 | ||||||
Stock based compensation (in shares) | 206,000 | ||||||
Stock based compensation | 5,367 | 5,367 | |||||
Stock options exercised (in shares) | 113,000 | ||||||
Stock options exercised | 787 | 787 | |||||
Common stock issued (in shares) | 1,000 | ||||||
Common stock issued | 26 | 26 | |||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (105,000) | ||||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | (4,031) | (4,031) | |||||
Common stock issued to acquire a non-controlling interests of nTelos (in shares) | 76,000 | ||||||
Balance (in shares) at Dec. 31, 2018 | 49,630,000 | ||||||
Balance at Dec. 31, 2018 | 444,232 | $ 56,097 | 47,456 | 388,496 | $ 56,097 | 8,280 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 55,956 | 55,956 | |||||
Other comprehensive gain (loss), net of tax | (7,972) | (7,972) | |||||
Dividends declared | (14,442) | (14,442) | |||||
Dividends reinvested in common stock (in shares) | 499 | 499 | |||||
Dividends reinvested in common stock | 14,000 | ||||||
Share repurchases (in shares) | (200,000) | ||||||
Share repurchases | (7,231) | (7,231) | |||||
Stock based compensation (in shares) | 184,000 | ||||||
Stock based compensation | 4,182 | 4,182 | |||||
Stock options exercised (in shares) | 29,000 | ||||||
Stock options exercised | 81 | 81 | |||||
Common stock issued | 34 | 34 | |||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (62,000) | ||||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | $ (2,911) | (2,911) | |||||
Common stock issued to acquire a non-controlling interests of nTelos (in shares) | 76,000 | ||||||
Balance (in shares) at Dec. 31, 2019 | 49,671,000 | 49,671,000 | |||||
Balance at Dec. 31, 2019 | $ 472,428 | 42,110 | 430,010 | 308 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 126,723 | 126,723 | |||||
Other comprehensive gain (loss), net of tax | (5,014) | (5,014) | |||||
Dividends declared | (16,950) | (16,950) | |||||
Dividends reinvested in common stock (in shares) | (2) | (2) | |||||
Stock based compensation (in shares) | 156,000 | ||||||
Stock based compensation | 6,833 | 6,833 | |||||
Stock options exercised | 36 | 36 | |||||
Common stock issued (in shares) | 1,000 | ||||||
Common stock issued | 31 | 31 | |||||
Annual dividend reinvestment (in shares) | 12,000 | ||||||
Annual dividend reinvestment | 526 | 526 | |||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards (in shares) | (48,000) | ||||||
Shares retired for settlement of employee taxes upon issuance of vested equity awards | $ (2,217) | (2,217) | |||||
Common stock issued to acquire a non-controlling interests of nTelos (in shares) | 76,000 | ||||||
Balance (in shares) at Dec. 31, 2020 | 49,868,000 | 49,868,000 | |||||
Balance at Dec. 31, 2020 | $ 582,394 | $ 47,317 | $ 539,783 | $ (4,706) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividend declared per share (in dollars per share) | $ 0.34 | $ 0.29 | $ 0.27 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 126,723 | $ 55,956 | $ 46,595 |
Income from discontinued operations, net of tax | 124,097 | 53,568 | 44,518 |
Income from continuing operations | 2,626 | 2,388 | 2,077 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 47,964 | 46,313 | 44,213 |
Amortization | 739 | 473 | 176 |
Accretion of asset retirement obligations | 333 | 410 | 319 |
Bad debt expense | 1,220 | 1,743 | 1,983 |
Stock based compensation expense, net of amount capitalized | 5,907 | 3,367 | 4,745 |
Deferred income taxes | 15,310 | 16,848 | 3,857 |
Gain from patronage and investments | (1,311) | (4,769) | (3,112) |
Changes in assets and liabilities: | |||
Accounts receivable | (7,318) | (74) | 8 |
Current income taxes | (15,896) | (16,675) | (5,200) |
Operating lease right-of-use assets | 3,980 | 7,593 | 0 |
Other assets | (3,959) | 162 | (6,576) |
Accounts payable | (663) | (8,426) | 12,203 |
Lease liabilities | (3,067) | (4,987) | 0 |
Other deferrals and accruals | 7,494 | (2,037) | (494) |
Net cash provided by operating activities - continuing operations | 53,359 | 42,329 | 54,199 |
Net cash provided by operating activities - discontinued operations | 249,508 | 216,816 | 211,448 |
Net cash provided by operating activities | 302,867 | 259,145 | 265,647 |
Cash flows from investing activities: | |||
Capital expenditures | (120,450) | (67,048) | (56,631) |
Cash disbursed for acquisitions | (1,890) | (10,000) | 0 |
Cash disbursed for deposit on FCC spectrum leases | (16,118) | (16,742) | 0 |
Proceeds from sale of assets and other | 370 | 112 | 541 |
Net cash used in investing activities - continuing operations | (138,088) | (93,678) | (56,090) |
Net cash used in investing activities - discontinued operations | (17,500) | (71,656) | (131,710) |
Net cash used in investing activities | (155,588) | (165,334) | (187,800) |
Cash flows from financing activities: | |||
Dividends paid, net of dividends reinvested | (16,424) | (13,943) | (12,863) |
Share repurchases | 0 | (7,231) | 0 |
Taxes paid for equity award issuances | (2,217) | (2,910) | (3,245) |
Payments for financing arrangements and other | (769) | 36 | (2) |
Net cash used in financing activities - continuing operations | (19,410) | (24,048) | (16,110) |
Net cash used in financing activities - discontinued operations | (34,123) | (53,198) | (55,236) |
Net cash used in financing activities | (53,533) | (77,246) | (71,346) |
Net increase in cash and cash equivalents | 93,746 | 16,565 | 6,501 |
Cash and cash equivalents, beginning of period | 101,651 | 85,086 | 78,585 |
Cash and cash equivalents, end of period | $ 195,397 | $ 101,651 | $ 85,086 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Shenandoah Telecommunications Company and its subsidiaries (collectively, the “Company”) provide broadband data, video and voice services to residential and commercial customers in portions of Virginia, West Virginia, Maryland, Pennsylvania and Kentucky, via fiber optic, hybrid fiber coaxial cable, and fixed wireless networks. We also lease dark fiber and provide Ethernet and Wavelength fiber optic services to enterprise and wholesale customers throughout the entirety of our service area. The Broadband segment also provides voice and DSL telephone services to customers in Virginia’s Shenandoah County and portions of adjacent counties as a Rural Local Exchange Carrier (“RLEC”). These integrated networks are connected by a fiber network. All of these operations are contained within our Broadband reporting segment. Our Tower segment owns 223 cell towers and leases colocation space on those towers to wireless communications providers, including our discontinued wireless operation, refer to Note 3, Discontinued Operations , and Note 15, Segment Reporting , for additional information. Revision of Prior Period Financial Statements In connection with the preparation of our unaudited condensed consolidated financial statements for the three months ended March 31, 2020, we determined that certain errors existed in our previously issued financial statements. Specifically: • Prepaid and other assets, a component of current assets held for sale, as of December 31, 2019, were understated by $2.7 million, deferred tax liabilities were understated by $0.7 million, and retained earnings were understated by $2.0 million as the result of a failure to properly account for handsets that were utilized as demo phones in certain wireless retail stores within our area of operation. All of the impact to retained earnings is attributable to 2017 and prior years. • Property, plant and equipment, net, classified as held for sale, and deferred income tax liabilities, as of December 31, 2019 were understated by $1.4 million and $0.4 million, respectively. Depreciation, contained within discontinued operations, was overstated by $1.4 million for the year and quarter ended December 31, 2019. Income tax expense and net income were understated by $0.4 million and $1.0 million, respectively, for the year and quarter ended December 31, 2019. We evaluated these errors under the U.S. Securities and Exchange Commission's ("SEC's") authoritative guidance on materiality and the quantification of the effect of prior period misstatements on financial statements, and we have determined that the impact of these errors on our prior period consolidated financial statements is immaterial. However, since the correction of these errors in the first quarter of 2020 could have become material to our results of operations for the year ending December 31, 2020, we revised our prior period financial statements to correct these errors herein. For the year and quarter ended December 31, 2019, the correction of these errors resulted in a $0.02 increase in both basic and diluted earnings per share from discontinued operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of consolidation: The accompanying consolidated financial statements include the accounts of Shenandoah Telecommunications Company and all of its wholly owned subsidiaries. All intercompany accounts and transactions for continuing operations have been eliminated in consolidation. Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or the U.S., requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results to be reported in future periods could differ from our estimates. Cash and cash equivalents: Cash equivalents include all investments with an original maturity of three months or less. The Company places its temporary cash investments with high credit quality financial institutions. Generally, such investments are in excess of FDIC or SIPC insurance limits. Property, plant and equipment: Property, plant and equipment is stated at cost less accumulated depreciation. The Company capitalizes all costs associated with the purchase, deployment and installation of property, plant and equipment, including interest costs and internal labor costs on major capital projects during the period of their construction. Maintenance expense is recognized as incurred when repairs are performed that do not extend the life of property, plant and equipment. Expenses for major renewals and improvements, which significantly extend the useful lives of existing property and equipment, are capitalized and depreciated. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the lesser of their useful lives or respective lease terms. Land is not depreciated. Refer to Note 6, Property, Plant and Equipment , for additional information. Indefinite-lived Intangible Assets: Goodwill represents the excess of acquisition costs over the fair value of tangible net assets and identifiable intangible assets of the businesses acquired. Cable franchise rights provide us with the non-exclusive right to provide video services in a specified area. Spectrum licenses are issued by the Federal Communications Commission (“FCC”) and provide us with either an exclusive or priority access right to utilize designated radio frequency spectrum within specific geographic service areas to provide wireless communication services. While some cable franchises and spectrum licenses are issued for a fixed time (generally ten years and up to fifteen years, respectively), renewals have been granted routinely and at nominal costs. The Company believes it will be able to meet all requirements necessary to secure renewal of its cable franchise rights and spectrum licenses. Moreover, the Company has determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of our cable franchises or spectrum licenses and as a result, we account for cable franchise rights and spectrum licenses as indefinite-lived intangible assets. Indefinite-lived intangible assets are not amortized, but rather, are subject to impairment testing annually, in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. These assets are evaluated for impairment based on the identification of reporting units. Our reporting units align with our reporting segments. We evaluated our reporting units for impairment during the fourth quarter of 2020, 2019 and 2018, respectively, on the basis of qualitative factors. Our consideration of qualitative factors included but was not limited to macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances, after tax cash flows and market capitalization trends. We concluded that there were no indicators that a reporting unit impairment was more likely than not during the years ended December 31, 2020, 2019, or 2018. Long-lived Assets: Finite-lived intangible assets, property, plant, and equipment, and other long-lived assets are amortized or depreciated over their estimated useful lives, as summarized in the respective footnotes below. These assets are evaluated for impairment based on the identification of asset groups. Our asset groups align with our reporting segments. We evaluated our asset groups for impairment during the fourth quarter of 2020. We concluded that there were no indicators that an asset group impairment had been triggered during the years ended December 31, 2020, 2019, or 2018. Advertising Costs: The Company expenses advertising costs and marketing production costs as incurred and includes such costs within selling, general and administrative expenses in the consolidated statements of operations. Advertising expense for the years ended December 31, 2020, 2019 and 2018 was $2.7 million, $3.5 million and $2.6 million, respectively. Benefit Obligations: The Benefit obligations caption includes the following plans: ($ in thousands) December 31, 2020 December 31, 2019 Pension Plan $ 7,961 $ 6,824 Postretirement Plan 3,997 3,573 SERP Plan 2,687 2,278 Total $ 14,645 $ 12,675 The pension plan is frozen and covers certain employees who were employed by nTelos prior to October 1, 2003. Benefits under the plan vested after five years of plan service and were based on years of service and an average of the five highest consecutive years of compensation subject to certain reductions if the employee elects to receive the benefit prior to age 65. This plan was amended on December 31, 2012, to freeze future benefit plan accruals for participants. As of December 31, 2020 and 2019, the fair value of our Pension Plan assets were $27.0 million and $24.1 million, respectively. These investments are held in index funds, and are valued based on the net asset value per share. Our Pension Plan's projected benefit obligation was $34.9 million and $30.9 million, at December 31, 2020 and 2019, respectively. The Pension Plan liability was discounted at 2.41% and 3.16% at December 31, 2020 and 2019, respectively. The postretirement benefit plan is a frozen, unfunded, defined benefit plan. It covers certain health care benefits for certain retirees who were employed by an acquiree and meet eligibility requirements. The postretirement plan liability was discounted at 2.32% and 3.12% at December 31, 2020 and 2019, respectively. The service component of defined benefit plan expense is immaterial and is included in selling, general, and administrative expense. Following our adoption of ASU 2017-17, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, on January 1, 2018, all other components of benefit plan expense are presented in Other income (expense) and our policy is to immediately recognize actuarial gains and losses into earnings. The Supplemental Executive Retirement Plan ("SERP") is a benefit plan that provides deferred compensation to certain employees. The Company holds investments in a rabbi trust as a source of funding for future payments under the plan. The SERP’s investments were designated as trading securities and will be liquidated and paid out to the participants upon retirement. The benefit obligation to participants is always equal to the value of the SERP assets under ASC 710 Compensation. Changes to the investments’ fair value are presented in Other income (expense), while the reciprocal changes in the liability are presented in selling, general and administrative expense. Share Repurchase Program : On November 4, 2019, our program to repurchase up to $80 million of common stock became effective and expired on the 2020 anniversary. During the fourth quarter of 2019, we repurchased 200,410 shares under the program at an average price of $36.08; there were no repurchases made during the year ended December 31, 2020. Our common shares have zero par value and our policy is to record the entire repurchase as a reduction of additional paid-in capital. Repurchased shares are canceled and revert to a status of “authorized and unissued” under Virginia law. New Accounting Standards The Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses ("ASC 326"): Measurement of Credit Losses on Financial Instruments , as of January 1, 2020 using the modified retrospective transition method. ASC 326 requires the application of a current expected credit loss (“CECL”) impairment model to financial assets measured at amortized cost including trade accounts receivable, net investments in leases, and certain off-balance-sheet credit exposures. Under the CECL model, lifetime expected credit losses on such financial assets are measured and recognized at each reporting date based on historical, current, and forecasted information. Furthermore, the CECL model requires financial assets with similar risk characteristics to be analyzed on a collective basis. There was no significant impact to consolidated financial statements upon adoption. The Company adopted ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software ("ASC 350"): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, as of January 1, 2020. This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Upon adoption of the standard, implementation costs were capitalized in the period incurred and will be amortized over the term of the hosting arrangement. There was no significant impact to consolidated financial statements upon adoption. In March 2020, the FASB issued ASU 2020-04 “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ” This accounting update provides optional accounting relief to entities with contracts, hedge accounting relationships or other transactions that reference London Interbank Offering Rate (LIBOR) or other interest rate benchmarks for which the referenced rate is expected to be discontinued or replaced. This optional relief generally allows for contract modifications solely related to the replacement of the reference rate to be accounted for as a continuation of the existing contract instead of as an extinguishment of the contract, and therefore would not require reassessment of a previous accounting determination. The Company's Credit Agreement and interest rate swaps have LIBOR as a reference rate. We plan to apply the accounting relief as relevant contract modifications are made to our Credit Agreement and interest rate swap contracts during the course of the reference rate reform transition period. The optional relief can be applied beginning January 1, 2020, and ending December 31, 2022. We implemented Accounting Standards Codification ("ASC") 842- Leases, ("ASC 842"), on January 1, 2019 using the modified retrospective method and thus did not retroactively adjust prior periods. ASC 842 replaced previous leasing guidance with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. The new standard required lessees to recognize most leases on their balance sheet as liabilities, along with the corresponding right-of-use, or ROU, assets. See Note 9, Leases for more information. We adopted ASU No. 2018-02- Income Statement - Reporting Comprehensive Income, ("ASC 220"), as of January 1, 2019. We elected not to reclassify stranded income tax effects from accumulated other comprehensive income (OCI) to retained earnings. We utilize the portfolio approach as our policy to release the income tax effects from accumulated OCI as the entire portfolio is liquidated, sold, or extinguished. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On August 26, 2020, Sprint Corporation ("Sprint"), an indirect subsidiary of T-Mobile US, Inc., ("T-Mobile"), on behalf of and as the direct or indirect owner of Sprint PCS, delivered notice to the Company exercising its option to purchase the assets and operations of our Wireless operations for 90% of the “Entire Business Value” (as defined under our affiliate agreement and determined pursuant to the appraisal process set forth therein). Shortly thereafter, the Company committed to a plan to sell the discontinued Wireless operations. The final and binding appraisal process was completed on February 1, 2021. Expected sale proceeds are $1.95 billion based upon the appraisal process and other agreements between the parties. We expect to enter into a definitive asset purchase agreement with T-Mobile during the first quarter 2021 and expect that the transaction will close during the second quarter 2021, subject to customary closing conditions and required regulatory approvals. The assets and liabilities that are expected to transfer in the sale are presented as held for sale within our Consolidated Balance Sheets. This disposal group excludes the accounts receivable and certain current liabilities generated by our Wireless operations because they are expected to be settled separately from the sale. Such accounts receivable totaled $51.7 million and $51.0 million at December 31, 2020 and December 31, 2019, respectively, and such current liabilities totaled $6.1 million and $27.7 million at December 31, 2020 and December 31, 2019, respectively. During the fourth quarter of 2020 and subsequent thereto, the parties agreed that our pension and postretirement plan liabilities due to certain current and former Wireless employees would not transfer in the sale. Our identification of assets and liabilities held for sale as of December 31, 2020 and 2019 has been updated accordingly, and could change again based on the terms of the final asset purchase agreement. The transaction is structured as an asset sale for income tax purposes. As a result, no current or deferred tax assets or liabilities are included within the disposal group. While our long-term debt does not transfer in the sale, its provisions require us to repay all of the debt upon consummation of the sale. Our debt is therefore presented outside of the disposal group as a current liability at December 31, 2020. Our related interest rate swap liabilities are also presented outside of the disposal group as a current liability at December 31, 2020 because management intends to settle it at consummation. The expected divestiture of our Wireless operations represents a strategic shift in the Company’s business and qualifies as a discontinued operation. Accordingly, the operating results and cash flows from our Wireless operations have been reflected as discontinued operations in our Consolidated Statements of Comprehensive Income and the Consolidated Statements of Cash Flows. Similarly, the results of our Wireless operations are no longer presented as a reporting segment. Because repayment of the debt is contractually triggered by the sale, the related interest expense is presented within discontinued operations under the relevant authoritative guidance. Consistent with the internal reporting provided to our chief operating decision maker, we previously allocated certain corporate management overhead costs to the former Wireless segment which may no longer be allocated to discontinued operations under the relevant authoritative guidance. Accordingly, we elected to recast our segment reporting note, to reflect the reattribution of these expenses in all presented periods in a manner that is also consistent with our updated internal reporting. The carrying amounts of the major classes of assets and liabilities, which are classified as held for sale in the consolidated balance sheets, are as follows: (in thousands) December 31, December 31, ASSETS Inventory $ 5,746 $ 5,728 Prepaid expenses and other 47,003 49,349 Property, plant and equipment, net 299,647 — Intangible assets, net 176,459 — Goodwill 146,383 — Operating lease right-of-use assets 421,586 — Deferred charges and other assets 36,470 — Current assets held for sale $ 1,133,294 $ 55,077 Property, plant and equipment, net $ — $ 338,427 Intangible assets, net — 228,593 Goodwill — 146,383 Operating lease right-of-use assets — 384,010 Deferred charges and other assets — 44,085 Non-current assets held for sale $ — $ 1,141,498 Total assets held for sale $ 1,133,294 $ 1,196,575 LIABILITIES Current operating lease liabilities $ 409,887 $ 47,077 Accrued liabilities and other 8,770 6,835 Asset retirement obligations 33,545 — Current liabilities held for sale $ 452,202 $ 53,912 Non-current operating lease liabilities $ — $ 337,661 Asset retirement obligations — 30,762 Non-current liabilities held for sale $ — $ 368,423 Total liabilities held for sale $ 452,202 $ 422,335 Income from discontinued operations, net of tax in the consolidated statements of comprehensive income consist of the following for the years ended December 31, 2020, 2019 and 2018: (in thousands) Revenue: 2020 2019 2018 Service revenue and other $ 401,035 $ 375,730 $ 382,948 Equipment revenue 41,338 67,659 67,510 Total revenue 442,373 443,389 450,458 Operating expenses: Cost of services 116,394 128,482 125,082 Cost of goods sold 40,642 65,148 63,583 Selling, general and administrative 34,011 39,128 43,563 Depreciation and amortization 62,930 111,467 122,014 Total operating expenses 253,977 344,225 354,242 Operating income 188,396 99,164 96,216 Other (expense) income: Interest expense (20,455) (29,286) (34,838) Income before income taxes 167,941 69,878 61,378 Income tax expense 43,844 16,310 16,860 Income from discontinued operations, net of tax $ 124,097 $ 53,568 $ 44,518 Our Broadband and Tower segments recognize revenue for their respective provision of cell site backhaul service and leased colocation space to the discontinued Wireless operations. That revenue is earned under contracts executed at our estimate of fair market value, which will transfer upon consummation of the sale. Accordingly, we expect to have a level of continuing involvement with the discontinued operations via these pre-existing contractual arrangements. Revenue recognized within continuing operations pursuant to these agreements is disclosed in Note 15, Segment Reporting . Because the right to use space on our owned cell towers and the related lease liability will be transferred in the sale, they have been included in our disposal group under the relevant authoritative guidance. These right of use assets and lease liabilities were previously eliminated within our consolidated financial statements. Total assets and total liabilities as of December 31, 2019 therefore increased by $34 million as a result. Under the relevant authoritative guidance, consummation of the sale will trigger or accelerate the recognition of certain expense related to contingent deal advisory fees, severance costs, recognition of our interest rate swap losses in net income, and loss on debt extinguishment. Our estimate of the related range of reasonably possible expense extends from $0 if the sale is not consummated to $35.9 million. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Our Broadband segment provides broadband data, video and voice services to residential and commercial customers in portions of Virginia, West Virginia, Maryland, Pennsylvania and Kentucky, via fiber optic, hybrid fiber coaxial cable, and fixed wireless networks. The Broadband segment also provides voice and DSL telephone services to customers in Virginia’s Shenandoah County and portions of adjacent counties as a Rural Local Exchange Carrier (“RLEC”). These contracts are generally cancellable at the customer’s discretion without penalty at any time. We allocate the total transaction price in these transactions based upon the standalone selling price of each distinct good or service. We generally recognize these revenues over time as customers simultaneously receive and consume the benefits of the service, with the exception of equipment sales and home wiring, which are recognized as revenue at a point in time when control transfers and when installation is complete, respectively. Installation fees, charged upfront without transfer of commensurate goods or services to the customer, are allocated to services and are recognized ratably over the longer of the contract term or the period in which the unrecognized fee remains material to the contract, which we estimate to be about one year. Additionally, the Company incurs commission and installation costs related to in-house and third-party vendors which are capitalized and amortized over the expected weighted average customer life which is approximately five years. Our Broadband segment also provides Ethernet and Wavelength fiber optic services to commercial fiber customers under capacity agreements, and the related revenue is recognized over time. In some cases, non-refundable upfront fees are charged for connecting commercial fiber customers to our fiber network. Those amounts are recognized ratably over the longer of the contract term or the period in which the unrecognized fee remains material to the respective contract. A related contract liability of $2.8 million was recognized at December 31, 2020, which we expect to recognize into revenue at the rate of approximately $0.8 million per year. The Broadband segment also leases dedicated fiber optic strands to customers as part of “dark fiber” agreements, which are accounted for as leases under ASC 842. Our Tower segment leases space on owned cell towers to our Wireless and Broadband segments, and to other wireless carriers. Revenue from these leases is accounted for under ASC 842. Refer to Note 15, Segment Reporting , for a summary of these revenue streams. Below is a summary of the Broadband segment's capitalized contract acquisition and fulfillment costs: (in thousands) 2020 2019 Beginning Balance $ 11,005 $ 10,091 Contract payments 8,154 6,518 Contract amortization (4,490) (5,604) Ending Balance $ 14,669 $ 11,005 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Investments | Investments Investments consist of the following: (in thousands) December 31, December 31, SERP Investments at fair value $ 2,687 $ 2,278 Cost method investments 10,536 9,497 Equity method investments 546 613 Total investments $ 13,769 $ 12,388 SERP Investments at Fair Value: The Supplemental Executive Retirement Plan (“SERP”) is a benefit plan that provides deferred compensation to certain employees. The Company holds the related investments in a rabbi trust as a source of funding for future payments under the plan. The SERP’s investments were designated as trading securities and will be liquidated and paid out to the participants upon retirement. The benefit obligation to participants is always equal to the value of the SERP assets under ASC 710, Compensation . Changes to the investments' fair value are presented in Other income (expense), while the reciprocal changes in the liability are presented in selling, general and administrative expense. Cost Method Investments : Our investment in CoBank’s Class A common stock represented substantially all of our cost method investments with a balance of $9.8 million and $8.7 million at December 31, 2020 and 2019, respectively. We recognized approximately $4.2 million, $4.2 million and $2.8 million of patronage income in Other income (expense) in 2020, 2019 and 2018, respectively. Historically, approximately 75% of the patronage distributions were collected in cash and 25% in equity. Equity Method Investments: At December 31, 2020, the Company had a 20.0% ownership interest in Valley Network Partnership (“ValleyNet”). The Company and ValleyNet purchase capacity on one another’s fiber network. We recognized revenue of $0.9 million, $1.0 million, and $1.7 million from providing service to ValleyNet during 2020, 2019, and 2018, respectively. We recognized Cost of service of $2.7 million, $3.0 million, and $3.4 million for the use of ValleyNet’s network during 2020, 2019, and 2018, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following: ($ in thousands) Estimated Useful Lives December 31, December 31, Land $ 3,909 $ 3,677 Land improvements 10 years 2,910 2,620 Buildings and structures 10 - 40 years 91,335 85,835 Cable and fiber 15 - 30 years 390,209 334,260 Equipment and software 4 - 8 years 331,047 278,873 Plant in service 819,410 705,265 Plant under construction 49,417 31,226 Total property, plant and equipment 868,827 736,491 Less: accumulated amortization and depreciation 428,400 373,404 Property, plant and equipment, net $ 440,427 $ 363,087 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Other intangible assets consisted of the following: December 31, 2020 December 31, 2019 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Goodwill - Broadband $ 3,244 $ — $ 3,244 $ 2,687 $ — $ 2,687 Indefinite-lived intangibles: Cable franchise rights $ 64,334 $ — $ 64,334 $ 64,334 $ — $ 64,334 FCC spectrum licenses 29,958 — 29,958 13,839 — 13,839 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 94,433 — 94,433 78,314 — 78,314 Finite-lived intangibles: FCC spectrum licenses 6,811 (340) 6,471 4,659 (97) 4,562 Subscriber relationships 28,425 (26,000) 2,425 28,065 (25,600) 2,465 Other intangibles 463 (277) 186 463 (250) 213 Total finite-lived intangibles 35,699 (26,617) 9,082 33,187 (25,947) 7,240 Total goodwill and intangible assets $ 133,376 $ (26,617) $ 106,759 $ 114,188 $ (25,947) $ 88,241 We acquired Canaan Cable ("Canaan") on December 31, 2020. The $2.1 million acquisition price was allocated as follows: $1.1 million of property, plant and equipment; $0.4 million to subscriber relationships; and $0.6 million of goodwill. We remitted $1.89 million of the acquisition price at closing. The remaining $210 thousand was accrued and represents a non-cash investing and financing activity. During the third quarter of 2020, the Company completed the purchase of certain indefinite-lived CBRS spectrum licenses for an aggregate cost of $16.1 million, within our Broadband segment. Spectrum licenses in the CBRS band are issued by the Federal Communications Commission (“FCC”) and provide us priority access rights over general access users other than incumbents, in that specific band, in accordance with the FCC’s three-tier CBRS band spectrum sharing framework to utilize designated radio frequency spectrum within specific geographic service areas to provide wireless communication services. During the third quarter of 2019, the Company purchased certain indefinite-lived spectrum licenses for $13.8 million and finite-lived spectrum licenses for $4.7 million. We acquired Big Sandy Broadband, Inc. (“Big Sandy”) on February 28, 2019. The $10 million acquisition price was allocated as follows: $4.6 million of property, plant and equipment; $2.8 million of subscriber relationships; and $2.6 million of goodwill. For the years ended December 31, 2020, 2019 and 2018, amortization expense was approximately $0.7 million, $0.5 million and $0.2 million, respectively. Our finite-lived intangible assets are amortized over the following estimated useful lives: Estimated Useful Life FCC spectrum licenses 18 - 30 years Subscriber relationships 3 - 10 years Other intangibles 15 - 20 years The following table summarizes expected amortization of intangible assets at December 31, 2020: (in thousands) Amortization of Intangible Assets 2021 $ 782 2022 782 2023 782 2024 782 2025 778 Thereafter 5,176 Total $ 9,082 |
Other Assets and Accrued Liabil
Other Assets and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Assets and Accrued Liabilities | Other Assets and Accrued Liabilities Prepaid expenses and other, classified as current assets, included the following: (in thousands) December 31, December 31, Prepaid maintenance expenses $ 4,018 $ 3,065 Broadband contract acquisition and fulfillment costs 4,417 4,898 Interest rate swaps — 1,382 Other 1,196 1,833 Prepaid expenses and other $ 9,631 $ 11,178 Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) December 31, December 31, 2019 Broadband contract acquisition and fulfillment costs $ 10,252 $ 6,107 Prepaid expenses and other 1,398 1,908 Interest rate swaps — 1,252 Deferred charges and other assets $ 11,650 $ 9,267 Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) December 31, 2020 December 31, 2019 Interest rate swaps $ 4,048 $ — Accrued programming costs 2,868 3,023 Sales and property taxes payable 1,072 919 Other current liabilities 5,881 3,614 Accrued liabilities and other $ 13,869 $ 7,556 Other liabilities, classified as long-term liabilities, included the following: (in thousands) December 31, December 31, 2019 Noncurrent portion of deferred lease revenue $ 18,687 $ 12,449 FCC spectrum license obligations 3,845 1,699 Noncurrent portion of financing leases 1,492 1,591 Other 881 1,252 Other liabilities $ 24,905 $ 16,991 Asset Retirement Obligations: Our asset retirement obligations arise from certain of our leases and generally require us to remove our towers from ground leases. Below is a summary: Years Ended December 31, (in thousands) 2020 2019 2018 Balance at beginning of year $ 6,152 $ 8,808 $ 4,619 Additional liabilities accrued 262 593 1,273 Changes to prior estimates (1,633) (3,659) 2,568 Payments — — — Accretion expense 332 410 348 Balance at end of year $ 5,113 $ 6,152 $ 8,808 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We adopted ASC 842 on January 1, 2019 using the modified retrospective method. We applied the package of practical expedients and, as a result, did not reassess prior conclusions regarding lease identification, lease classification and initial direct costs under the new standard. In those circumstances where the Company is the lessee, we elected to account for non-lease components associated with our leases (e.g., maintenance costs) and lease components as a single lease component for substantially all of our asset classes. We lease various telecommunications sites, warehouses, retail stores, and office facilities for use in our business. These agreements include fixed rental payments as well as variable rental payments, such as those based on relevant inflation indices. The accounting lease term includes optional renewal periods that we are reasonably certain to exercise based on our assessment of relevant contractual and economic factors. The related lease payments are discounted at lease commencement using the Company's incremental borrowing rate in order to measure the lease liability and ROU asset. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the observable unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate. At December 31, 2020, our operating leases had a weighted average remaining lease term of twenty-three years and a weighted average discount rate of 4.7%. Our finance leases had a weighted average remaining lease term of fourteen years and a weighted average discount rate of 5.2%. During 2020, we recognized $6.6 million of operating lease expense and $0.6 million of interest and depreciation expense on finance leases. Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Variable lease payments and short-term lease expense were both immaterial. We remitted $4.4 million of operating lease payments during 2020. We also obtained $6.8 million of leased assets in exchange for new operating lease liabilities recognized during 2020. The following table summarizes the expected maturity of lease liabilities at December 31, 2020: (in thousands) Operating Leases Finance Leases Total 2021 $ 4,046 $ 174 $ 4,220 2022 4,282 174 4,456 2023 3,826 174 4,000 2024 3,477 174 3,651 2025 3,250 174 3,424 2026 and thereafter 64,739 1,354 66,093 Total lease payments 83,620 2,224 85,844 Less: Interest 35,555 636 36,191 Present value of lease liabilities $ 48,065 $ 1,588 $ 49,653 We recognized $9.1 million of operating lease revenue during 2020 related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service and other revenue in the consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place at December 31, 2020: (in thousands) Operating Leases 2021 $ 6,292 2022 5,236 2023 3,618 2024 2,410 2025 1,320 2026 and thereafter 3,805 Total $ 22,681 |
Leases | Leases We adopted ASC 842 on January 1, 2019 using the modified retrospective method. We applied the package of practical expedients and, as a result, did not reassess prior conclusions regarding lease identification, lease classification and initial direct costs under the new standard. In those circumstances where the Company is the lessee, we elected to account for non-lease components associated with our leases (e.g., maintenance costs) and lease components as a single lease component for substantially all of our asset classes. We lease various telecommunications sites, warehouses, retail stores, and office facilities for use in our business. These agreements include fixed rental payments as well as variable rental payments, such as those based on relevant inflation indices. The accounting lease term includes optional renewal periods that we are reasonably certain to exercise based on our assessment of relevant contractual and economic factors. The related lease payments are discounted at lease commencement using the Company's incremental borrowing rate in order to measure the lease liability and ROU asset. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the observable unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate. At December 31, 2020, our operating leases had a weighted average remaining lease term of twenty-three years and a weighted average discount rate of 4.7%. Our finance leases had a weighted average remaining lease term of fourteen years and a weighted average discount rate of 5.2%. During 2020, we recognized $6.6 million of operating lease expense and $0.6 million of interest and depreciation expense on finance leases. Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Variable lease payments and short-term lease expense were both immaterial. We remitted $4.4 million of operating lease payments during 2020. We also obtained $6.8 million of leased assets in exchange for new operating lease liabilities recognized during 2020. The following table summarizes the expected maturity of lease liabilities at December 31, 2020: (in thousands) Operating Leases Finance Leases Total 2021 $ 4,046 $ 174 $ 4,220 2022 4,282 174 4,456 2023 3,826 174 4,000 2024 3,477 174 3,651 2025 3,250 174 3,424 2026 and thereafter 64,739 1,354 66,093 Total lease payments 83,620 2,224 85,844 Less: Interest 35,555 636 36,191 Present value of lease liabilities $ 48,065 $ 1,588 $ 49,653 We recognized $9.1 million of operating lease revenue during 2020 related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service and other revenue in the consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place at December 31, 2020: (in thousands) Operating Leases 2021 $ 6,292 2022 5,236 2023 3,618 2024 2,410 2025 1,320 2026 and thereafter 3,805 Total $ 22,681 |
Leases | Leases We adopted ASC 842 on January 1, 2019 using the modified retrospective method. We applied the package of practical expedients and, as a result, did not reassess prior conclusions regarding lease identification, lease classification and initial direct costs under the new standard. In those circumstances where the Company is the lessee, we elected to account for non-lease components associated with our leases (e.g., maintenance costs) and lease components as a single lease component for substantially all of our asset classes. We lease various telecommunications sites, warehouses, retail stores, and office facilities for use in our business. These agreements include fixed rental payments as well as variable rental payments, such as those based on relevant inflation indices. The accounting lease term includes optional renewal periods that we are reasonably certain to exercise based on our assessment of relevant contractual and economic factors. The related lease payments are discounted at lease commencement using the Company's incremental borrowing rate in order to measure the lease liability and ROU asset. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the observable unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate. At December 31, 2020, our operating leases had a weighted average remaining lease term of twenty-three years and a weighted average discount rate of 4.7%. Our finance leases had a weighted average remaining lease term of fourteen years and a weighted average discount rate of 5.2%. During 2020, we recognized $6.6 million of operating lease expense and $0.6 million of interest and depreciation expense on finance leases. Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Variable lease payments and short-term lease expense were both immaterial. We remitted $4.4 million of operating lease payments during 2020. We also obtained $6.8 million of leased assets in exchange for new operating lease liabilities recognized during 2020. The following table summarizes the expected maturity of lease liabilities at December 31, 2020: (in thousands) Operating Leases Finance Leases Total 2021 $ 4,046 $ 174 $ 4,220 2022 4,282 174 4,456 2023 3,826 174 4,000 2024 3,477 174 3,651 2025 3,250 174 3,424 2026 and thereafter 64,739 1,354 66,093 Total lease payments 83,620 2,224 85,844 Less: Interest 35,555 636 36,191 Present value of lease liabilities $ 48,065 $ 1,588 $ 49,653 We recognized $9.1 million of operating lease revenue during 2020 related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service and other revenue in the consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place at December 31, 2020: (in thousands) Operating Leases 2021 $ 6,292 2022 5,236 2023 3,618 2024 2,410 2025 1,320 2026 and thereafter 3,805 Total $ 22,681 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our syndicated Credit Agreement includes a $75 million, five-year undrawn revolving credit facility, as well as the following term loans: (in thousands) December 31, December 31, Term loan A-1 $ 229,437 $ 258,571 Term loan A-2 468,481 473,469 697,918 732,040 Less: unamortized loan fees 9,455 11,926 Total debt, net of unamortized loan fees $ 688,463 $ 720,114 Term Loan A-1 bears interest at one-month LIBOR plus a margin of 1.50%, while Term Loan A-2 bears interest at one-month LIBOR plus a margin of 1.75%. LIBOR resets monthly. Our cash payments for interest were $18.6 million and $27.6 million during 2020 and 2019, respectively. The Credit Agreement is fully secured by a pledge and unconditional guarantee from the Company and all of its subsidiaries, except Shenandoah Telephone Company. This provides the lenders a security interest in substantially all of the assets of the Company. The Credit Agreement contains affirmative and negative covenants customary to secured credit facilities, including restrictions on our ability to incur additional indebtedness and additional liens on their assets, engage in mergers or acquisitions or dispose of assets, pay dividends or make other distributions, voluntarily prepay other indebtedness, enter into transactions with affiliated persons, make investments, and change the nature of the Company’s businesses. Total dividends, distributions, and redemptions of capital stock generally cannot exceed the sum of $25 million plus 60% of the Company's consolidated net income from January 1, 2016 to the date of declaration of such dividends, distributions or redemptions. The financial covenants of the Credit Facility include: • a limitation on the Company’s total leverage ratio, calculated as Consolidated EBITDA, as defined by the Credit Facility agreement, of less than or equal to 3.50 to 1.00 from December 31, 2018 through December 31, 2019, then 3.25 to 1.00 through December 31, 2021, and 3.00 to 1.00 thereafter; • a minimum debt service coverage ratio, calculated as Consolidated EBITDA minus certain cash tax payments divided by the sum of all scheduled principal payments on the Credit Facility plus cash payments for interest, greater than or equal to 2.00 to 1.00; • the Company must maintain a minimum liquidity balance, calculated as availability under the Revolver Facility plus unrestricted cash and cash equivalents, of greater than $25 million at all times. As shown below, as of December 31, 2020, the Company was in compliance with the financial covenants in its credit agreements. Actual Covenant Requirement Total leverage ratio 2.0 3.25 or Lower Debt service coverage ratio 6.6 2.0 or Higher Minimum liquidity balance (in millions) $ 270.4 $25.0 or Higher Rate quotations provided by a group of banks that sustain LIBOR will no longer be required after 2021. As a result, it is uncertain whether LIBOR will continue to be quoted after 2021. Our term loans and interest rate swaps identify LIBOR as a reference rate and mature after 2021. Alternative reference rates that replace LIBOR may not yield the same or similar economic results over the terms of the financial instruments. The transition from LIBOR could result in us paying higher or lower interest rates on our current LIBOR-indexed term loans, affect the fair value of the derivative instruments we hold, or affect our ability to effectively use interest rate swaps to manage interest rate risk. Our Credit Agreement includes provisions that provide for the identification of a LIBOR replacement rate. Due to the uncertainty regarding the transition from LIBOR-indexed financial instruments, including when it will happen, and the manner in which an alternative reference rate will apply, we cannot yet reasonably estimate the expected financial impact of the LIBOR transition. As discussed in Note 3, Discontinued Operations , the terms of our long term debt agreements require us to repay all of our debt upon consummation of the sale of our Wireless operations, which is expected to occur during the first half of 2021. Management also intends to settle the related interest rate swaps upon consummation. Both are therefore presented outside of the disposal group as a current liability at December 31, 2020. |
Derivative and Hedging
Derivative and Hedging | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging | Derivatives and Hedging The Company's interest rate swaps are pay-fixed (1.16%), receive-variable (one month LIBOR) that hedged approximately 41% of outstanding debt with outstanding notional amounts totaling $289.4 million and $339.8 million December 31, 2020 and 2019, respectively. The fair value of these instruments was estimated using an income approach and observable market inputs. The hedge was determined to be highly effective and therefore all of the change in its fair value was recognized through other comprehensive income. Derivative balances are presented as follows in our consolidated balance sheet: (in thousands) December 31, December 31, Balance sheet location of derivative financial instruments: Prepaid expenses and other $ — $ 1,382 Deferred charges and other assets — 1,252 Accrued liabilities and other 4,048 — Total derivatives designated as hedging instruments $ 4,048 $ 2,634 Market expectations of the projected LIBOR decreased significantly during 2020, which drove the fair value of our interest rate swaps to a liability. The table below summarizes changes in accumulated other comprehensive income (loss) by component: (in thousands) Gains (Losses) on Income Tax Accumulated Balance as of December 31, 2019 $ 2,634 $ (2,326) $ 308 Net change in unrealized (loss) gain (8,444) 2,806 (5,638) Amounts reclassified from accumulated other comprehensive income (loss) to interest expense 1,762 (1,138) 624 Net current period other comprehensive (loss) income (6,682) 1,668 (5,014) Balance as of December 31, 2020 $ (4,048) $ (658) $ (4,706) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files a consolidated U.S. federal income tax return and various state income tax returns. The provision for the federal and state income taxes attributable to income (loss) consists of the following components: Years Ended December 31, (in thousands) 2020 2019 2018 Current (benefit) expense Federal taxes $ (13,748) $ (16,393) $ (6,033) State taxes (2,148) (282) 833 Total current provision (15,896) (16,675) (5,200) Deferred expense (benefit) Federal taxes 13,729 16,453 4,433 State taxes 1,581 395 (576) Total deferred provision 15,310 16,848 3,857 Income tax (benefit) expense $ (586) $ 173 $ (1,343) Effective tax rate (28.7) % 6.8 % (183.0) % A reconciliation of income taxes determined by applying the federal and state tax rates to income (loss) is as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Expected tax expense at federal statutory $ 428 $ 538 $ 154 State income taxes, net of federal tax effect 54 15 (202) Revaluation of U.S. deferred income taxes — — (760) Excess tax benefit from share based compensation and other, net (1,068) (380) (535) Income tax (benefit) expense $ (586) $ 173 $ (1,343) The effective tax rate in 2020 decreased from 2019, primarily as a result of higher excess tax benefits from share based compensation. The Company's cash payments for income taxes were $11.2 million in the year ended December 31, 2020. The Company received cash refunds for income taxes of $9.5 million in the year ended December 31, 2019. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply in the year of reversal or settlement and arise from temporary differences between the US GAAP and tax bases of the following assets and liabilities: (in thousands) December 31, December 31, Deferred tax assets: Leases $ 123,129 $ 106,564 Asset retirement obligations 10,403 9,957 Net operating loss carry-forwards 7,723 10,071 Pension liabilities 3,868 3,161 Accruals and stock based compensation 3,093 1,935 Other 5,002 1,408 Total gross deferred tax assets 153,218 133,096 Less valuation allowance — — Net deferred tax assets 153,218 133,096 Deferred tax liabilities: Property, plant and equipment 127,602 110,676 Leases 126,458 105,475 Intangible assets 25,722 27,201 Prepaid assets and other 24,088 27,311 Total gross deferred tax liabilities 303,870 270,663 Net deferred tax liabilities $ 150,652 $ 137,567 In assessing the ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generating future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, taxable income in prior carryback years if available and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods for which the deferred tax assets are deductible, the Company believes it more likely than not that the net deferred tax assets will be realized. The Company has a deferred tax asset of $7.7 million related to federal and various state net operating losses. As of December 31, 2020, the Company had approximately $36.7 million of federal net operating losses expiring through 2027. The Company also had approximately $0.1 million of state net operating losses expiring through 2036. As of December 31, 2020 and 2019, the Company had no unrecognized tax benefits. |
Earnings per Share & Stock Comp
Earnings per Share & Stock Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Earnings per Share & Stock Compensation | Earnings per Share & Stock Compensation The Company maintains two shareholder-approved Company Stock Incentive Plans allowing for the grant of equity based incentive compensation to essentially all employees. The 2005 Plan authorized grants of up to 2,880,000 shares over a ten-year period beginning in 2005. The term of the 2005 Plan expired in February 2014; outstanding awards will continue to vest and options may continue to be exercised, but no additional awards will be granted under the 2005 Plan. The 2014 Plan authorizes grants of up to an additional 3,000,000 shares over a ten-year period beginning in 2014. Under these Plans, grants may take the form of stock awards, awards of options to acquire stock, stock appreciation rights, and other forms of equity based compensation; both options to acquire stock and stock awards were granted. The Company granted approximately 96 thousand restricted stock units (RSUs) to employees and directors during 2020 at an average market price of $49.02. The Company also granted, approximately 40 thousand Relative Total Shareholder Return (“RTSR”) awards to employees at an average value of $56.32 during 2020. Restricted stock units generally have service requirements only or performance and service requirements with vesting periods ranging from one year for directors to four years for employees. RTSR awards vest over three years. The performance factor applied to the RTSR awards is based upon the Company's stock performance compared to a group of peer companies. The actual number of shares to be issued and can range from 0% to 150% of the awards granted. The cost of employee services received in exchange for share-based awards classified as equity is measured using the estimated fair value of the award on the date of the grant, and the related expense is recorded using the straight-line method consistent with the recipient's respective service period. Stock-based compensation expense was as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Stock compensation expense $ 6,227 $ 3,732 $ 5,153 Capitalized stock compensation 320 365 408 Stock compensation expense, net $ 5,907 $ 3,367 $ 4,745 As of both December 31, 2020 and 2019, there was $3.7 million of total unrecognized compensation cost related to non-vested incentive awards that are expected to be recognized over a weighted average period of 2.6 years. We utilize the treasury stock method to calculate the impact on diluted earnings per share that potentially dilutive stock-based compensation awards have. The following table indicates the computation of basic and diluted earnings per share: Years Ended December 31, (in thousands, except per share amounts) 2020 2019 2018 Calculation of net income per share: Income from continuing operations $ 2,626 $ 2,388 $ 2,077 Income from discontinued operations, net of tax $ 124,097 $ 53,568 $ 44,518 Net income $ 126,723 $ 55,956 $ 46,595 Basic weighted average shares outstanding 49,901 49,811 49,542 Basic net income per share - continuing operations $ 0.05 $ 0.05 $ 0.04 Basic net income per share - discontinued operations $ 2.49 $ 1.07 $ 0.90 Basic net income per share $ 2.54 $ 1.12 $ 0.94 Effect of stock-based compensation awards outstanding: Basic weighted average shares outstanding 49,901 49,811 49,542 Effect from dilutive shares and options outstanding 123 290 521 Diluted weighted average shares outstanding 50,024 50,101 50,063 Diluted net income per share - continuing operations $ 0.05 $ 0.05 $ 0.04 Diluted net income per share - discontinued operations $ 2.48 $ 1.07 $ 0.89 Diluted net income per share $ 2.53 $ 1.12 $ 0.93 There were fewer than 110 thousand anti-dilutive awards outstanding during 2020, 2019, and 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are committed to make payments to satisfy our lease liabilities and long-term debt. The scheduled payments under those obligations are summarized in the respective notes above. We are also committed to make annual payments of approximately $108.0 thousand on our FCC spectrum license obligation through 2039. The Company is subject to claims and legal actions that may arise in the ordinary course of business. The Company does not believe that any of these pending claims or legal actions are either probable or reasonably possible of a material loss. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The expected divestiture of our Wireless operations represents a strategic shift in the Company’s business and qualifies as a discontinued operation. As a result, the operating results and cash flows related to the Wireless segment have been reflected as discontinued operations in our Consolidated Statements of Comprehensive Income and the Consolidated Statements of Cash Flows. Similarly, the results of our Wireless operations are no longer presented as a reporting segment. Consistent with the internal reporting provided to our chief operating decision maker, we previously allocated certain corporate management overhead costs to the former Wireless segment which may no longer be allocated to discontinued operations under the relevant authoritative guidance. Accordingly, we have recast our reporting of the remaining segments to reflect the reattribution of these expenses in all presented periods in a manner consistent with our updated internal reporting. The tables below reflect the results of operations of the Company's reportable segments in continuing operations, consistent with internal reporting used by the Company. Year ended December 31, 2020: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 154,956 $ — $ — $ 154,956 Commercial Fiber 24,431 — — 24,431 RLEC & Other 15,971 — — 15,971 Tower lease — 7,402 — 7,402 Service revenue and other 195,358 7,402 — 202,760 Revenue for service provided to the discontinued Wireless operations 8,989 9,653 (627) 18,015 Total revenue 204,347 17,055 (627) 220,775 Operating expenses Cost of services 83,439 4,896 (132) 88,203 Selling, general and administrative 39,472 1,430 44,114 85,016 Depreciation and amortization 41,076 1,906 5,721 48,703 Total operating expenses 163,987 8,232 49,703 221,922 Operating income (loss) $ 40,360 $ 8,823 $ (50,330) $ (1,147) Capital expenditures $ 117,246 $ 2,001 $ 1,203 $ 120,450 Year ended December 31, 2019: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 142,290 $ — $ — $ 142,290 Commercial Fiber 23,004 — — 23,004 RLEC & Other 18,257 — — 18,257 Tower lease — 6,965 — 6,965 Service revenue and other 183,551 6,965 — 190,516 Revenue for service provided to the discontinued Wireless operations 10,392 6,020 (66) 16,346 Total revenue 193,943 12,985 (66) 206,862 Operating expenses Cost of services 79,235 3,777 (63) 82,949 Selling, general and administrative 33,545 937 43,364 77,846 Depreciation and amortization 38,566 1,976 6,244 46,786 Total operating expenses 151,346 6,690 49,545 207,581 Operating income (loss) $ 42,597 $ 6,295 $ (49,611) $ (719) Capital expenditures $ 60,627 $ 921 $ 5,500 $ 67,048 Year ended December 31, 2018: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 131,512 $ — $ — $ 131,512 Commercial Fiber 22,090 — — 22,090 RLEC & Other 19,612 — — 19,612 Tower lease — 7,180 — 7,180 Service revenue and other 173,214 7,180 — 180,394 Revenue for service provided to the discontinued Wireless operations 9,906 5,016 (2,633) 12,289 Total revenue 183,120 12,196 (2,633) 192,683 Operating expenses Cost of services 76,731 3,687 — 80,418 Selling, general and administrative 28,103 704 42,037 70,844 Depreciation and amortization 35,992 2,406 5,992 44,390 Total operating expenses 140,826 6,797 48,029 195,652 Operating income (loss) $ 42,294 $ 5,399 $ (50,662) $ (2,969) Capital expenditures $ 43,197 $ 6,145 $ 7,289 $ 56,631 A reconciliation of the total of the reportable segments’ operating income to consolidated income before taxes is as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Total consolidated operating loss $ (1,147) $ (719) $ (2,969) Other income, net 3,187 3,280 3,703 Income from continuing operations before income taxes $ 2,040 $ 2,561 $ 734 The Company’s CODM does not currently review total assets by segment since the assets are centrally managed and some of the assets are shared by the segments, accordingly total assets by segment are not provided. |
Quarterly Results (unaudited)
Quarterly Results (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (unaudited) | Quarterly Results (unaudited) The following table reflects selected quarterly results for the Company. Three Months Ended (in thousands, except per share data) March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Revenue $ 53,134 $ 54,336 $ 55,173 $ 58,132 Operating (loss) income (1,364) (1,867) 470 1,614 Income (loss) from continuing operations 150 (536) 1,412 1,600 Income from discontinued operations, net of tax 13,129 29,784 33,509 47,675 Net income 13,279 29,248 34,921 49,275 Basic - (Loss) income from continuing operations $ — $ (0.01) $ 0.03 $ 0.03 Basic - Income from discontinued operations, net of tax $ 0.27 $ 0.59 $ 0.67 $ 0.96 Basic net income per share $ 0.27 $ 0.58 $ 0.70 $ 0.99 Diluted - (Loss) income from continuing operations $ — $ (0.01) $ 0.03 $ 0.03 Diluted - Income from discontinued operations, net of tax $ 0.27 $ 0.59 $ 0.67 $ 0.95 Diluted net income per share $ 0.27 $ 0.58 $ 0.70 $ 0.98 Three Months Ended (in thousands except per share data) March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Revenue $ 49,895 $ 51,551 $ 51,814 $ 53,602 Operating (loss) income (1,765) 915 681 (550) Income (loss) from continuing operations 607 1,509 1,168 (896) Income from discontinued operations, net of tax 13,303 11,640 13,186 15,439 Net income 13,910 13,149 14,354 14,543 Basic - Income (loss) from continuing operations $ 0.01 $ 0.03 $ 0.02 $ (0.01) Basic - Income from discontinued operations, net of tax $ 0.27 $ 0.23 $ 0.27 $ 0.30 Basic net income per share $ 0.28 $ 0.26 $ 0.29 $ 0.29 Diluted - Income (loss) from continuing operations $ 0.01 $ 0.03 $ 0.02 $ (0.01) Diluted - Income from discontinued operations, net of tax $ 0.27 $ 0.23 $ 0.27 $ 0.30 Diluted net income per share $ 0.28 $ 0.26 $ 0.29 $ 0.29 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts Changes in the Company’s allowance for doubtful accounts for accounts receivable for the years ended December 31, 2020, 2019 and 2018 are summarized below: (in thousands) Balance at Beginning of Year Recoveries added to allowance Bad debt expense Write-offs Balance at End of Year Year Ended December 31, 2020 Allowance for doubtful accounts $ 533 $ 758 $ 1,220 $ (1,897) $ 614 Year Ended December 31, 2019 Allowance for doubtful accounts $ 534 $ 649 $ 1,743 $ (2,393) $ 533 Year Ended December 31, 2018 Allowance for doubtful accounts $ 466 $ 631 $ 1,983 $ (2,546) $ 534 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of consolidation | The accompanying consolidated financial statements include the accounts of Shenandoah Telecommunications Company and all of its wholly owned subsidiaries. All intercompany accounts and transactions for continuing operations have been eliminated in consolidation. |
Use of estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States, or the U.S., requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Due to the inherent uncertainty involved in making estimates, actual results to be reported in future periods could differ from our estimates. |
Cash and cash equivalents | Cash equivalents include all investments with an original maturity of three months or less. The Company places its temporary cash investments with high credit quality financial institutions. Generally, such investments are in excess of FDIC or SIPC insurance limits. |
Property, plant and equipment | Property, plant and equipment is stated at cost less accumulated depreciation. The Company capitalizes all costs associated with the purchase, deployment and installation of property, plant and equipment, including interest costs and internal labor costs on major capital projects during the period of their construction. Maintenance expense is recognized as incurred when repairs are performed that do not extend the life of property, plant and equipment. Expenses for major renewals and improvements, which significantly extend the useful lives of existing property and equipment, are capitalized and depreciated. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the lesser of their useful lives or respective lease terms. Land is not depreciated. |
Indefinite-lived Intangible Assets | Goodwill represents the excess of acquisition costs over the fair value of tangible net assets and identifiable intangible assets of the businesses acquired. Cable franchise rights provide us with the non-exclusive right to provide video services in a specified area. Spectrum licenses are issued by the Federal Communications Commission (“FCC”) and provide us with either an exclusive or priority access right to utilize designated radio frequency spectrum within specific geographic service areas to provide wireless communication services. While some cable franchises and spectrum licenses are issued for a fixed time (generally ten years and up to fifteen years, respectively), renewals have been granted routinely and at nominal costs. The Company believes it will be able to meet all requirements necessary to secure renewal of its cable franchise rights and spectrum licenses. Moreover, the Company has determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of our cable franchises or spectrum licenses and as a result, we account for cable franchise rights and spectrum licenses as indefinite-lived intangible assets. Indefinite-lived intangible assets are not amortized, but rather, are subject to impairment testing annually, in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. These assets are evaluated for impairment based on the identification of reporting units. Our reporting units align with our reporting segments. We evaluated our reporting units for impairment during the fourth quarter of 2020, 2019 and 2018, respectively, on the basis of qualitative factors. Our consideration of qualitative factors included but was not limited to macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances, after tax cash flows and market capitalization trends. |
Long-lived Assets | Finite-lived intangible assets, property, plant, and equipment, and other long-lived assets are amortized or depreciated over their estimated useful lives, as summarized in the respective footnotes below. These assets are evaluated for impairment based on the identification of asset groups. Our asset groups align with our reporting segments. We evaluated our asset groups for impairment during the fourth quarter of 2020. |
Advertising Costs | Advertising Costs: The Company expenses advertising costs and marketing production costs as incurred and includes such costs within selling, general and administrative expenses in the consolidated statements of operations. |
Retirement plans | The pension plan is frozen and covers certain employees who were employed by nTelos prior to October 1, 2003. Benefits under the plan vested after five years of plan service and were based on years of service and an average of the five highest consecutive years of compensation subject to certain reductions if the employee elects to receive the benefit prior to age 65. This plan was amended on December 31, 2012, to freeze future benefit plan accruals for participants. |
New Accounting Standards | New Accounting Standards The Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses ("ASC 326"): Measurement of Credit Losses on Financial Instruments , as of January 1, 2020 using the modified retrospective transition method. ASC 326 requires the application of a current expected credit loss (“CECL”) impairment model to financial assets measured at amortized cost including trade accounts receivable, net investments in leases, and certain off-balance-sheet credit exposures. Under the CECL model, lifetime expected credit losses on such financial assets are measured and recognized at each reporting date based on historical, current, and forecasted information. Furthermore, the CECL model requires financial assets with similar risk characteristics to be analyzed on a collective basis. There was no significant impact to consolidated financial statements upon adoption. The Company adopted ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software ("ASC 350"): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, as of January 1, 2020. This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Upon adoption of the standard, implementation costs were capitalized in the period incurred and will be amortized over the term of the hosting arrangement. There was no significant impact to consolidated financial statements upon adoption. In March 2020, the FASB issued ASU 2020-04 “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ” This accounting update provides optional accounting relief to entities with contracts, hedge accounting relationships or other transactions that reference London Interbank Offering Rate (LIBOR) or other interest rate benchmarks for which the referenced rate is expected to be discontinued or replaced. This optional relief generally allows for contract modifications solely related to the replacement of the reference rate to be accounted for as a continuation of the existing contract instead of as an extinguishment of the contract, and therefore would not require reassessment of a previous accounting determination. The Company's Credit Agreement and interest rate swaps have LIBOR as a reference rate. We plan to apply the accounting relief as relevant contract modifications are made to our Credit Agreement and interest rate swap contracts during the course of the reference rate reform transition period. The optional relief can be applied beginning January 1, 2020, and ending December 31, 2022. We implemented Accounting Standards Codification ("ASC") 842- Leases, ("ASC 842"), on January 1, 2019 using the modified retrospective method and thus did not retroactively adjust prior periods. ASC 842 replaced previous leasing guidance with a comprehensive lease measurement and recognition standard and expanded disclosure requirements. The new standard required lessees to recognize most leases on their balance sheet as liabilities, along with the corresponding right-of-use, or ROU, assets. See Note 9, Leases for more information. We adopted ASU No. 2018-02- Income Statement - Reporting Comprehensive Income, ("ASC 220"), as of January 1, 2019. We elected not to reclassify stranded income tax effects from accumulated other comprehensive income (OCI) to retained earnings. We utilize the portfolio approach as our policy to release the income tax effects from accumulated OCI as the entire portfolio is liquidated, sold, or extinguished. |
Investment | SERP Investments at Fair Value: The Supplemental Executive Retirement Plan (“SERP”) is a benefit plan that provides deferred compensation to certain employees. The Company holds the related investments in a rabbi trust as a source of funding for future payments under the plan. The SERP’s investments were designated as trading securities and will be liquidated and paid out to the participants upon retirement. The benefit obligation to participants is always equal to the value of the SERP assets under ASC 710, Compensation . Changes to the investments' fair value are presented in Other income (expense), while the reciprocal changes in the liability are presented in selling, general and administrative expense. Cost Method Investments : Our investment in CoBank’s Class A common stock represented substantially all of our cost method investments with a balance of $9.8 million and $8.7 million at December 31, 2020 and 2019, respectively. We recognized approximately $4.2 million, $4.2 million and $2.8 million of patronage income in Other income (expense) in 2020, 2019 and 2018, respectively. Historically, approximately 75% of the patronage distributions were collected in cash and 25% in equity. Equity Method Investments: At December 31, 2020, the Company had a 20.0% ownership interest in Valley Network Partnership (“ValleyNet”). The Company and ValleyNet purchase capacity on one another’s fiber network. We recognized revenue of $0.9 million, $1.0 million, and $1.7 million from providing service to ValleyNet during 2020, 2019, and 2018, respectively. We recognized Cost of service of $2.7 million, $3.0 million, and $3.4 million for the use of ValleyNet’s network during 2020, 2019, and 2018, respectively. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | Benefit Obligations: The Benefit obligations caption includes the following plans: ($ in thousands) December 31, 2020 December 31, 2019 Pension Plan $ 7,961 $ 6,824 Postretirement Plan 3,997 3,573 SERP Plan 2,687 2,278 Total $ 14,645 $ 12,675 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The carrying amounts of the major classes of assets and liabilities, which are classified as held for sale in the consolidated balance sheets, are as follows: (in thousands) December 31, December 31, ASSETS Inventory $ 5,746 $ 5,728 Prepaid expenses and other 47,003 49,349 Property, plant and equipment, net 299,647 — Intangible assets, net 176,459 — Goodwill 146,383 — Operating lease right-of-use assets 421,586 — Deferred charges and other assets 36,470 — Current assets held for sale $ 1,133,294 $ 55,077 Property, plant and equipment, net $ — $ 338,427 Intangible assets, net — 228,593 Goodwill — 146,383 Operating lease right-of-use assets — 384,010 Deferred charges and other assets — 44,085 Non-current assets held for sale $ — $ 1,141,498 Total assets held for sale $ 1,133,294 $ 1,196,575 LIABILITIES Current operating lease liabilities $ 409,887 $ 47,077 Accrued liabilities and other 8,770 6,835 Asset retirement obligations 33,545 — Current liabilities held for sale $ 452,202 $ 53,912 Non-current operating lease liabilities $ — $ 337,661 Asset retirement obligations — 30,762 Non-current liabilities held for sale $ — $ 368,423 Total liabilities held for sale $ 452,202 $ 422,335 Income from discontinued operations, net of tax in the consolidated statements of comprehensive income consist of the following for the years ended December 31, 2020, 2019 and 2018: (in thousands) Revenue: 2020 2019 2018 Service revenue and other $ 401,035 $ 375,730 $ 382,948 Equipment revenue 41,338 67,659 67,510 Total revenue 442,373 443,389 450,458 Operating expenses: Cost of services 116,394 128,482 125,082 Cost of goods sold 40,642 65,148 63,583 Selling, general and administrative 34,011 39,128 43,563 Depreciation and amortization 62,930 111,467 122,014 Total operating expenses 253,977 344,225 354,242 Operating income 188,396 99,164 96,216 Other (expense) income: Interest expense (20,455) (29,286) (34,838) Income before income taxes 167,941 69,878 61,378 Income tax expense 43,844 16,310 16,860 Income from discontinued operations, net of tax $ 124,097 $ 53,568 $ 44,518 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Amortized and Capitalized Contract Cost | Below is a summary of the Broadband segment's capitalized contract acquisition and fulfillment costs: (in thousands) 2020 2019 Beginning Balance $ 11,005 $ 10,091 Contract payments 8,154 6,518 Contract amortization (4,490) (5,604) Ending Balance $ 14,669 $ 11,005 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments [Abstract] | |
Other Investments | Investments consist of the following: (in thousands) December 31, December 31, SERP Investments at fair value $ 2,687 $ 2,278 Cost method investments 10,536 9,497 Equity method investments 546 613 Total investments $ 13,769 $ 12,388 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following: ($ in thousands) Estimated Useful Lives December 31, December 31, Land $ 3,909 $ 3,677 Land improvements 10 years 2,910 2,620 Buildings and structures 10 - 40 years 91,335 85,835 Cable and fiber 15 - 30 years 390,209 334,260 Equipment and software 4 - 8 years 331,047 278,873 Plant in service 819,410 705,265 Plant under construction 49,417 31,226 Total property, plant and equipment 868,827 736,491 Less: accumulated amortization and depreciation 428,400 373,404 Property, plant and equipment, net $ 440,427 $ 363,087 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Resulting from Acquisition | Other intangible assets consisted of the following: December 31, 2020 December 31, 2019 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Goodwill - Broadband $ 3,244 $ — $ 3,244 $ 2,687 $ — $ 2,687 Indefinite-lived intangibles: Cable franchise rights $ 64,334 $ — $ 64,334 $ 64,334 $ — $ 64,334 FCC spectrum licenses 29,958 — 29,958 13,839 — 13,839 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 94,433 — 94,433 78,314 — 78,314 Finite-lived intangibles: FCC spectrum licenses 6,811 (340) 6,471 4,659 (97) 4,562 Subscriber relationships 28,425 (26,000) 2,425 28,065 (25,600) 2,465 Other intangibles 463 (277) 186 463 (250) 213 Total finite-lived intangibles 35,699 (26,617) 9,082 33,187 (25,947) 7,240 Total goodwill and intangible assets $ 133,376 $ (26,617) $ 106,759 $ 114,188 $ (25,947) $ 88,241 |
Schedule of Finite-Lived Intangible Assets | Other intangible assets consisted of the following: December 31, 2020 December 31, 2019 (in thousands) Gross Accumulated Amortization and Other Net Gross Accumulated Amortization and Other Net Goodwill - Broadband $ 3,244 $ — $ 3,244 $ 2,687 $ — $ 2,687 Indefinite-lived intangibles: Cable franchise rights $ 64,334 $ — $ 64,334 $ 64,334 $ — $ 64,334 FCC spectrum licenses 29,958 — 29,958 13,839 — 13,839 Railroad crossing rights 141 — 141 141 — 141 Total indefinite-lived intangibles 94,433 — 94,433 78,314 — 78,314 Finite-lived intangibles: FCC spectrum licenses 6,811 (340) 6,471 4,659 (97) 4,562 Subscriber relationships 28,425 (26,000) 2,425 28,065 (25,600) 2,465 Other intangibles 463 (277) 186 463 (250) 213 Total finite-lived intangibles 35,699 (26,617) 9,082 33,187 (25,947) 7,240 Total goodwill and intangible assets $ 133,376 $ (26,617) $ 106,759 $ 114,188 $ (25,947) $ 88,241 |
Schedule of Finite Lived Intangible Assets, Amortization, Estimated Useful Lives | Our finite-lived intangible assets are amortized over the following estimated useful lives: Estimated Useful Life FCC spectrum licenses 18 - 30 years Subscriber relationships 3 - 10 years Other intangibles 15 - 20 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes expected amortization of intangible assets at December 31, 2020: (in thousands) Amortization of Intangible Assets 2021 $ 782 2022 782 2023 782 2024 782 2025 778 Thereafter 5,176 Total $ 9,082 |
Other Assets and Accrued Liab_2
Other Assets and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Assets | Prepaid expenses and other, classified as current assets, included the following: (in thousands) December 31, December 31, Prepaid maintenance expenses $ 4,018 $ 3,065 Broadband contract acquisition and fulfillment costs 4,417 4,898 Interest rate swaps — 1,382 Other 1,196 1,833 Prepaid expenses and other $ 9,631 $ 11,178 |
Schedule of Other Assets, Noncurrent | Deferred charges and other assets, classified as long-term assets, included the following: (in thousands) December 31, December 31, 2019 Broadband contract acquisition and fulfillment costs $ 10,252 $ 6,107 Prepaid expenses and other 1,398 1,908 Interest rate swaps — 1,252 Deferred charges and other assets $ 11,650 $ 9,267 |
Summary of Accrued Liabilities and Other | Accrued liabilities and other, classified as current liabilities, included the following: (in thousands) December 31, 2020 December 31, 2019 Interest rate swaps $ 4,048 $ — Accrued programming costs 2,868 3,023 Sales and property taxes payable 1,072 919 Other current liabilities 5,881 3,614 Accrued liabilities and other $ 13,869 $ 7,556 |
Other Noncurrent Liabilities | Other liabilities, classified as long-term liabilities, included the following: (in thousands) December 31, December 31, 2019 Noncurrent portion of deferred lease revenue $ 18,687 $ 12,449 FCC spectrum license obligations 3,845 1,699 Noncurrent portion of financing leases 1,492 1,591 Other 881 1,252 Other liabilities $ 24,905 $ 16,991 |
Schedule of Change in Asset Retirement Obligation | Our asset retirement obligations arise from certain of our leases and generally require us to remove our towers from ground leases. Below is a summary: Years Ended December 31, (in thousands) 2020 2019 2018 Balance at beginning of year $ 6,152 $ 8,808 $ 4,619 Additional liabilities accrued 262 593 1,273 Changes to prior estimates (1,633) (3,659) 2,568 Payments — — — Accretion expense 332 410 348 Balance at end of year $ 5,113 $ 6,152 $ 8,808 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Expected Maturity of Lease Liabilities, Operating | The following table summarizes the expected maturity of lease liabilities at December 31, 2020: (in thousands) Operating Leases Finance Leases Total 2021 $ 4,046 $ 174 $ 4,220 2022 4,282 174 4,456 2023 3,826 174 4,000 2024 3,477 174 3,651 2025 3,250 174 3,424 2026 and thereafter 64,739 1,354 66,093 Total lease payments 83,620 2,224 85,844 Less: Interest 35,555 636 36,191 Present value of lease liabilities $ 48,065 $ 1,588 $ 49,653 |
Expected Maturity of Lease Liabilities, Financing | The following table summarizes the expected maturity of lease liabilities at December 31, 2020: (in thousands) Operating Leases Finance Leases Total 2021 $ 4,046 $ 174 $ 4,220 2022 4,282 174 4,456 2023 3,826 174 4,000 2024 3,477 174 3,651 2025 3,250 174 3,424 2026 and thereafter 64,739 1,354 66,093 Total lease payments 83,620 2,224 85,844 Less: Interest 35,555 636 36,191 Present value of lease liabilities $ 48,065 $ 1,588 $ 49,653 |
Minimum Rental Receipts Under Lease Agreement Lessor, Operating Leases | minimum rental receipts under the lease agreements in place at December 31, 2020: (in thousands) Operating Leases 2021 $ 6,292 2022 5,236 2023 3,618 2024 2,410 2025 1,320 2026 and thereafter 3,805 Total $ 22,681 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Our syndicated Credit Agreement includes a $75 million, five-year undrawn revolving credit facility, as well as the following term loans: (in thousands) December 31, December 31, Term loan A-1 $ 229,437 $ 258,571 Term loan A-2 468,481 473,469 697,918 732,040 Less: unamortized loan fees 9,455 11,926 Total debt, net of unamortized loan fees $ 688,463 $ 720,114 |
Financial Covenants in Credit Agreements | As shown below, as of December 31, 2020, the Company was in compliance with the financial covenants in its credit agreements. Actual Covenant Requirement Total leverage ratio 2.0 3.25 or Lower Debt service coverage ratio 6.6 2.0 or Higher Minimum liquidity balance (in millions) $ 270.4 $25.0 or Higher |
Derivative and Hedging (Tables)
Derivative and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Derivative balances are presented as follows in our consolidated balance sheet: (in thousands) December 31, December 31, Balance sheet location of derivative financial instruments: Prepaid expenses and other $ — $ 1,382 Deferred charges and other assets — 1,252 Accrued liabilities and other 4,048 — Total derivatives designated as hedging instruments $ 4,048 $ 2,634 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below summarizes changes in accumulated other comprehensive income (loss) by component: (in thousands) Gains (Losses) on Income Tax Accumulated Balance as of December 31, 2019 $ 2,634 $ (2,326) $ 308 Net change in unrealized (loss) gain (8,444) 2,806 (5,638) Amounts reclassified from accumulated other comprehensive income (loss) to interest expense 1,762 (1,138) 624 Net current period other comprehensive (loss) income (6,682) 1,668 (5,014) Balance as of December 31, 2020 $ (4,048) $ (658) $ (4,706) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Federal and State Income Taxes | The provision for the federal and state income taxes attributable to income (loss) consists of the following components: Years Ended December 31, (in thousands) 2020 2019 2018 Current (benefit) expense Federal taxes $ (13,748) $ (16,393) $ (6,033) State taxes (2,148) (282) 833 Total current provision (15,896) (16,675) (5,200) Deferred expense (benefit) Federal taxes 13,729 16,453 4,433 State taxes 1,581 395 (576) Total deferred provision 15,310 16,848 3,857 Income tax (benefit) expense $ (586) $ 173 $ (1,343) Effective tax rate (28.7) % 6.8 % (183.0) % |
Reconciliation of Income Taxes | A reconciliation of income taxes determined by applying the federal and state tax rates to income (loss) is as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Expected tax expense at federal statutory $ 428 $ 538 $ 154 State income taxes, net of federal tax effect 54 15 (202) Revaluation of U.S. deferred income taxes — — (760) Excess tax benefit from share based compensation and other, net (1,068) (380) (535) Income tax (benefit) expense $ (586) $ 173 $ (1,343) |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply in the year of reversal or settlement and arise from temporary differences between the US GAAP and tax bases of the following assets and liabilities: (in thousands) December 31, December 31, Deferred tax assets: Leases $ 123,129 $ 106,564 Asset retirement obligations 10,403 9,957 Net operating loss carry-forwards 7,723 10,071 Pension liabilities 3,868 3,161 Accruals and stock based compensation 3,093 1,935 Other 5,002 1,408 Total gross deferred tax assets 153,218 133,096 Less valuation allowance — — Net deferred tax assets 153,218 133,096 Deferred tax liabilities: Property, plant and equipment 127,602 110,676 Leases 126,458 105,475 Intangible assets 25,722 27,201 Prepaid assets and other 24,088 27,311 Total gross deferred tax liabilities 303,870 270,663 Net deferred tax liabilities $ 150,652 $ 137,567 |
Earnings per Share & Stock Co_2
Earnings per Share & Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock compensation expense | Stock-based compensation expense was as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Stock compensation expense $ 6,227 $ 3,732 $ 5,153 Capitalized stock compensation 320 365 408 Stock compensation expense, net $ 5,907 $ 3,367 $ 4,745 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table indicates the computation of basic and diluted earnings per share: Years Ended December 31, (in thousands, except per share amounts) 2020 2019 2018 Calculation of net income per share: Income from continuing operations $ 2,626 $ 2,388 $ 2,077 Income from discontinued operations, net of tax $ 124,097 $ 53,568 $ 44,518 Net income $ 126,723 $ 55,956 $ 46,595 Basic weighted average shares outstanding 49,901 49,811 49,542 Basic net income per share - continuing operations $ 0.05 $ 0.05 $ 0.04 Basic net income per share - discontinued operations $ 2.49 $ 1.07 $ 0.90 Basic net income per share $ 2.54 $ 1.12 $ 0.94 Effect of stock-based compensation awards outstanding: Basic weighted average shares outstanding 49,901 49,811 49,542 Effect from dilutive shares and options outstanding 123 290 521 Diluted weighted average shares outstanding 50,024 50,101 50,063 Diluted net income per share - continuing operations $ 0.05 $ 0.05 $ 0.04 Diluted net income per share - discontinued operations $ 2.48 $ 1.07 $ 0.89 Diluted net income per share $ 2.53 $ 1.12 $ 0.93 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Selected Financial Data for Segments | The tables below reflect the results of operations of the Company's reportable segments in continuing operations, consistent with internal reporting used by the Company. Year ended December 31, 2020: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 154,956 $ — $ — $ 154,956 Commercial Fiber 24,431 — — 24,431 RLEC & Other 15,971 — — 15,971 Tower lease — 7,402 — 7,402 Service revenue and other 195,358 7,402 — 202,760 Revenue for service provided to the discontinued Wireless operations 8,989 9,653 (627) 18,015 Total revenue 204,347 17,055 (627) 220,775 Operating expenses Cost of services 83,439 4,896 (132) 88,203 Selling, general and administrative 39,472 1,430 44,114 85,016 Depreciation and amortization 41,076 1,906 5,721 48,703 Total operating expenses 163,987 8,232 49,703 221,922 Operating income (loss) $ 40,360 $ 8,823 $ (50,330) $ (1,147) Capital expenditures $ 117,246 $ 2,001 $ 1,203 $ 120,450 Year ended December 31, 2019: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 142,290 $ — $ — $ 142,290 Commercial Fiber 23,004 — — 23,004 RLEC & Other 18,257 — — 18,257 Tower lease — 6,965 — 6,965 Service revenue and other 183,551 6,965 — 190,516 Revenue for service provided to the discontinued Wireless operations 10,392 6,020 (66) 16,346 Total revenue 193,943 12,985 (66) 206,862 Operating expenses Cost of services 79,235 3,777 (63) 82,949 Selling, general and administrative 33,545 937 43,364 77,846 Depreciation and amortization 38,566 1,976 6,244 46,786 Total operating expenses 151,346 6,690 49,545 207,581 Operating income (loss) $ 42,597 $ 6,295 $ (49,611) $ (719) Capital expenditures $ 60,627 $ 921 $ 5,500 $ 67,048 Year ended December 31, 2018: (in thousands) Broadband Tower Corporate & Eliminations Consolidated External revenue Residential & SMB $ 131,512 $ — $ — $ 131,512 Commercial Fiber 22,090 — — 22,090 RLEC & Other 19,612 — — 19,612 Tower lease — 7,180 — 7,180 Service revenue and other 173,214 7,180 — 180,394 Revenue for service provided to the discontinued Wireless operations 9,906 5,016 (2,633) 12,289 Total revenue 183,120 12,196 (2,633) 192,683 Operating expenses Cost of services 76,731 3,687 — 80,418 Selling, general and administrative 28,103 704 42,037 70,844 Depreciation and amortization 35,992 2,406 5,992 44,390 Total operating expenses 140,826 6,797 48,029 195,652 Operating income (loss) $ 42,294 $ 5,399 $ (50,662) $ (2,969) Capital expenditures $ 43,197 $ 6,145 $ 7,289 $ 56,631 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of the total of the reportable segments’ operating income to consolidated income before taxes is as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Total consolidated operating loss $ (1,147) $ (719) $ (2,969) Other income, net 3,187 3,280 3,703 Income from continuing operations before income taxes $ 2,040 $ 2,561 $ 734 |
Quarterly Results (unaudited) (
Quarterly Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table reflects selected quarterly results for the Company. Three Months Ended (in thousands, except per share data) March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Revenue $ 53,134 $ 54,336 $ 55,173 $ 58,132 Operating (loss) income (1,364) (1,867) 470 1,614 Income (loss) from continuing operations 150 (536) 1,412 1,600 Income from discontinued operations, net of tax 13,129 29,784 33,509 47,675 Net income 13,279 29,248 34,921 49,275 Basic - (Loss) income from continuing operations $ — $ (0.01) $ 0.03 $ 0.03 Basic - Income from discontinued operations, net of tax $ 0.27 $ 0.59 $ 0.67 $ 0.96 Basic net income per share $ 0.27 $ 0.58 $ 0.70 $ 0.99 Diluted - (Loss) income from continuing operations $ — $ (0.01) $ 0.03 $ 0.03 Diluted - Income from discontinued operations, net of tax $ 0.27 $ 0.59 $ 0.67 $ 0.95 Diluted net income per share $ 0.27 $ 0.58 $ 0.70 $ 0.98 Three Months Ended (in thousands except per share data) March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Revenue $ 49,895 $ 51,551 $ 51,814 $ 53,602 Operating (loss) income (1,765) 915 681 (550) Income (loss) from continuing operations 607 1,509 1,168 (896) Income from discontinued operations, net of tax 13,303 11,640 13,186 15,439 Net income 13,910 13,149 14,354 14,543 Basic - Income (loss) from continuing operations $ 0.01 $ 0.03 $ 0.02 $ (0.01) Basic - Income from discontinued operations, net of tax $ 0.27 $ 0.23 $ 0.27 $ 0.30 Basic net income per share $ 0.28 $ 0.26 $ 0.29 $ 0.29 Diluted - Income (loss) from continuing operations $ 0.01 $ 0.03 $ 0.02 $ (0.01) Diluted - Income from discontinued operations, net of tax $ 0.27 $ 0.23 $ 0.27 $ 0.30 Diluted net income per share $ 0.28 $ 0.26 $ 0.29 $ 0.29 |
Nature of Operations (Details)
Nature of Operations (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($)$ / shares | Sep. 30, 2020USD ($)$ / shares | Jun. 30, 2020USD ($)$ / shares | Mar. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Sep. 30, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Mar. 31, 2019USD ($)$ / shares | Dec. 31, 2020USD ($)cell_site$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Number of cell towers built | cell_site | 223 | ||||||||||
Prepaid expenses and other | $ 9,631 | $ 11,178 | $ 9,631 | $ 11,178 | |||||||
Deferred tax liabilities | 24,088 | 27,311 | 24,088 | 27,311 | |||||||
Retained earnings | 539,783 | 430,010 | 539,783 | 430,010 | |||||||
Property, plant and equipment, net | 440,427 | 363,087 | 440,427 | 363,087 | |||||||
Property, plant and equipment | 127,602 | 110,676 | 127,602 | 110,676 | |||||||
Depreciation and amortization | 48,703 | 46,786 | $ 44,390 | ||||||||
Income tax (benefit) expense | (586) | 173 | (1,343) | ||||||||
Net Income (Loss) Attributable to Parent | $ 49,275 | $ 34,921 | $ 29,248 | $ 13,279 | $ 14,543 | $ 14,354 | $ 13,149 | $ 13,910 | $ 126,723 | $ 55,956 | $ 46,595 |
Basic - Income from discontinued operations, net of tax (in dollars per share) | $ / shares | $ 0.96 | $ 0.67 | $ 0.59 | $ 0.27 | $ 0.30 | $ 0.27 | $ 0.23 | $ 0.27 | $ 2.49 | $ 1.07 | $ 0.90 |
Diluted - Income from discontinued operations, net of tax (in dollars per share) | $ / shares | $ 0.95 | $ 0.67 | $ 0.59 | $ 0.27 | $ 0.30 | $ 0.27 | $ 0.23 | $ 0.27 | $ 2.48 | $ 1.07 | $ 0.89 |
Correction of Error | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Prepaid expenses and other | $ 2,700 | $ 2,700 | |||||||||
Deferred tax liabilities | 700 | 700 | |||||||||
Retained earnings | 2,000 | 2,000 | |||||||||
Property, plant and equipment, net | 1,400 | 1,400 | |||||||||
Property, plant and equipment | 400 | 400 | |||||||||
Depreciation and amortization | 1,400 | 1,400 | |||||||||
Income tax (benefit) expense | 400 | 400 | |||||||||
Net Income (Loss) Attributable to Parent | $ 1,000 | $ 1,000 | |||||||||
Basic - Income from discontinued operations, net of tax (in dollars per share) | $ / shares | $ 0.02 | $ 0.02 | |||||||||
Diluted - Income from discontinued operations, net of tax (in dollars per share) | $ / shares | $ 0.02 | $ 0.02 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 04, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Advertising expense | $ 2,700,000 | $ 3,500,000 | $ 2,600,000 | ||
Fair value of projected benefit obligations | $ 12,675,000 | $ 14,645,000 | $ 12,675,000 | ||
Stock repurchase amount authorized | $ 80,000,000 | ||||
Share repurchases (in shares) | 200,410 | ||||
Stock repurchased during period (in dollars per share) | $ 36.08 | ||||
Common stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0 | ||
Pension Plan | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Fair value of projected benefit obligations | $ 6,824,000 | $ 7,961,000 | $ 6,824,000 | ||
Ntelos Holding, Corp | Pension Plan | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Fair value of pension plan assets | 24,100,000 | 27,000,000 | 24,100,000 | ||
Fair value of projected benefit obligations | $ 30,900,000 | $ 34,900,000 | $ 30,900,000 | ||
Discount rate | 3.16% | 2.41% | 3.16% | ||
Ntelos Pension Plan | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Pension benefits, vesting period | 5 years | ||||
Vesting reductions, threshold age of recipient | 65 years | ||||
Postretirement Plan | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Fair value of projected benefit obligations | $ 3,573,000 | $ 3,997,000 | $ 3,573,000 | ||
Discount rate | 3.12% | 2.32% | 3.12% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Benefit Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of projected benefit obligations | $ 14,645 | $ 12,675 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of projected benefit obligations | 7,961 | 6,824 |
Postretirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of projected benefit obligations | 3,997 | 3,573 |
SERP Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of projected benefit obligations | $ 2,687 | $ 2,278 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) | Aug. 26, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Feb. 01, 2021 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Current liabilities held for sale | $ 452,202,000 | $ 53,912,000 | |||
Current liabilities | 1,208,061,000 | 153,577,000 | |||
Increase in assets | $ 34,000,000 | ||||
Increase in liabilities | $ 34,000,000 | ||||
Wireless Segment | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Accounts receivable | 51,000,000 | ||||
Current liabilities | 27,700,000 | ||||
Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Current liabilities held for sale | 452,202,000 | $ 53,912,000 | |||
Discontinued Operations, Held-for-sale | Wireless Segment | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal group, accounts receivable | 51,700,000 | ||||
Current liabilities held for sale | 6,100,000 | ||||
Subsequent Event | Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Sale proceeds | $ 1,950,000,000 | ||||
Minimum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Accelerated expenses | 0 | ||||
Maximum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Accelerated expenses | $ 35,900,000 | ||||
Affiliated Entity | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Value of business percentage | 90.00% |
Discontinued Operations - Carry
Discontinued Operations - Carrying Amounts of the Major Classes of Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Current assets held for sale | $ 1,133,294 | $ 55,077 |
Non-current assets held for sale | 0 | 1,141,498 |
LIABILITIES | ||
Current liabilities held for sale | 452,202 | 53,912 |
Non-current liabilities held for sale | 0 | 368,423 |
Discontinued Operations, Held-for-sale | ||
ASSETS | ||
Inventory | 5,746 | 5,728 |
Prepaid expenses and other | 47,003 | 49,349 |
Property, plant and equipment, net | 299,647 | 0 |
Intangible assets, net | 176,459 | 0 |
Goodwill | 146,383 | 0 |
Operating lease right-of-use assets | 421,586 | 0 |
Deferred charges and other assets | 36,470 | 0 |
Current assets held for sale | 1,133,294 | 55,077 |
Property, plant and equipment, net | 0 | 338,427 |
Intangible assets, net | 0 | 228,593 |
Goodwill | 0 | 146,383 |
Operating lease right-of-use assets | 0 | 384,010 |
Deferred charges and other assets | 0 | 44,085 |
Non-current assets held for sale | 0 | 1,141,498 |
Total assets held for sale | 1,133,294 | 1,196,575 |
LIABILITIES | ||
Current operating lease liabilities | 409,887 | 47,077 |
Accrued liabilities and other | 8,770 | 6,835 |
Asset retirement obligations | 33,545 | 0 |
Current liabilities held for sale | 452,202 | 53,912 |
Non-current operating lease liabilities | 0 | 337,661 |
Asset retirement obligations | 0 | 30,762 |
Non-current liabilities held for sale | 0 | 368,423 |
Total liabilities held for sale | $ 452,202 | $ 422,335 |
Discontinued Operations - Incom
Discontinued Operations - Income (Loss) From Discontinued Operations (Details) - Discontinued Operations, Held-for-sale - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues [Abstract] | |||
Total revenue | $ 442,373 | $ 443,389 | $ 450,458 |
Operating expenses | |||
Selling, general and administrative | 34,011 | 39,128 | 43,563 |
Depreciation and amortization | 62,930 | 111,467 | 122,014 |
Total operating expenses | 253,977 | 344,225 | 354,242 |
Operating income | 188,396 | 99,164 | 96,216 |
Other income: | |||
Interest expense | (20,455) | (29,286) | (34,838) |
Income before income taxes | 167,941 | 69,878 | 61,378 |
Income tax expense | 43,844 | 16,310 | 16,860 |
Income from discontinued operations, net of tax | 124,097 | 53,568 | 44,518 |
Service revenue and other | |||
Revenues [Abstract] | |||
Total revenue | 401,035 | 375,730 | 382,948 |
Equipment revenue | |||
Revenues [Abstract] | |||
Total revenue | 41,338 | 67,659 | 67,510 |
Cost of services | |||
Operating expenses | |||
Cost of services and cost of goods sold | 116,394 | 128,482 | 125,082 |
Cost of goods sold | |||
Operating expenses | |||
Cost of services and cost of goods sold | $ 40,642 | $ 65,148 | $ 63,583 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Weighted average customer life | 5 years |
Remaining performance obligations | $ 2.8 |
Revenue remaining performance obligation, per year | $ 0.8 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Revenue from Contracts with Customers - Amortized and Capitalized Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Capitalized Contract Cost [Roll Forward] | ||
Beginning Balance | $ 11,005 | $ 10,091 |
Contract payments | 8,154 | 6,518 |
Contract amortization | (4,490) | (5,604) |
Ending Balance | $ 14,669 | $ 11,005 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investments [Abstract] | ||
SERP Investments at fair value | $ 2,687 | $ 2,278 |
Cost method investments | 10,536 | 9,497 |
Equity method investments | 546 | 613 |
Total investments | $ 13,769 | $ 12,388 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
SERP Investments at fair value | $ 2,687 | $ 2,278 | |
CoBank | |||
Schedule of Equity Method Investments [Line Items] | |||
SERP Investments at fair value | 9,800 | 8,700 | |
Other nonoperating income (expense) | $ 4,200 | 4,200 | $ 2,800 |
Percentage of patronage credit paid in cash | 75.00% | ||
Percentage of patronage credit paid in share | 25.00% | ||
Valley Network Partnership | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest, percentage | 20.00% | ||
Equity Method Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue from related parties | $ 900 | 1,000 | 1,700 |
Related party costs | $ 2,700 | $ 3,000 | $ 3,400 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 868,827 | $ 736,491 |
Less: accumulated amortization and depreciation | 428,400 | 373,404 |
Property, plant and equipment, net | 440,427 | 363,087 |
Land | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 3,909 | 3,677 |
Land improvements | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 10 years | |
Total property, plant and equipment | $ 2,910 | 2,620 |
Buildings and structures | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 91,335 | 85,835 |
Buildings and structures | Minimum | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 10 years | |
Buildings and structures | Maximum | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 40 years | |
Cable and fiber | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 390,209 | 334,260 |
Cable and fiber | Minimum | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 15 years | |
Cable and fiber | Maximum | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 30 years | |
Equipment and software | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 331,047 | 278,873 |
Equipment and software | Minimum | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 4 years | |
Equipment and software | Maximum | ||
Property, plant and equipment [Abstract] | ||
Estimated useful lives | 8 years | |
Plant in service | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 819,410 | 705,265 |
Plant under construction | ||
Property, plant and equipment [Abstract] | ||
Total property, plant and equipment | $ 49,417 | $ 31,226 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | $ 94,433 | $ 78,314 |
Gross carrying amount | 35,699 | 33,187 |
Accumulated amortization and other | (26,617) | (25,947) |
Total | 9,082 | 7,240 |
Total intangible assets, gross carrying amount | 133,376 | 114,188 |
Intangible assets, net | 106,759 | 88,241 |
Broadband | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, gross | 3,244 | 2,687 |
Goodwill | 3,244 | 2,687 |
FCC spectrum licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 6,811 | 4,659 |
Accumulated amortization and other | (340) | (97) |
Total | 6,471 | 4,562 |
Subscriber relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 28,425 | 28,065 |
Accumulated amortization and other | (26,000) | (25,600) |
Total | 2,425 | 2,465 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 463 | 463 |
Accumulated amortization and other | (277) | (250) |
Total | 186 | 213 |
Cable franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | 64,334 | 64,334 |
FCC spectrum licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | 29,958 | 13,839 |
Railroad crossing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Non-amortizing intangibles | $ 141 | $ 141 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Feb. 28, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Amortization expense | $ 700 | $ 500 | $ 200 | ||||
FCC spectrum licenses | |||||||
Business Acquisition [Line Items] | |||||||
Indefinite-lived intangible assets acquired | $ 16,100 | ||||||
Canaan Cable | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate purchase price | $ 2,100 | ||||||
Property, plant and equipment acquired | 1,100 | 1,100 | |||||
Goodwill | 600 | 600 | |||||
Remitted portion of acquisition price | 1,890 | ||||||
Accrued portion of acquisition price | 210 | ||||||
Big sandy acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate purchase price | $ 10,000 | ||||||
Property, plant and equipment acquired | 4,600 | ||||||
Goodwill | 2,600 | ||||||
Subscriber relationships | Canaan Cable | |||||||
Business Acquisition [Line Items] | |||||||
Subscriber relationship acquired | $ 400 | $ 400 | |||||
Subscriber relationships | Big sandy acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Subscriber relationship acquired | $ 2,800 | ||||||
FCC spectrum licenses | |||||||
Business Acquisition [Line Items] | |||||||
Indefinite-lived intangible assets acquired | $ 13,800 | ||||||
Finite-lived intangible assets acquired | $ 4,700 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Useful Life (Details) | 12 Months Ended |
Dec. 31, 2020 | |
FCC spectrum licenses | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 18 years |
FCC spectrum licenses | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 30 years |
Subscriber relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 3 years |
Subscriber relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 10 years |
Other intangibles | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 15 years |
Other intangibles | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 20 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets Goodwill and Intangible Assets - Amortization Expense for Intangible Assets (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 782 |
2022 | 782 |
2023 | 782 |
2024 | 782 |
2025 | 778 |
Thereafter | 5,176 |
Total | $ 9,082 |
Other Assets and Accrued Liab_3
Other Assets and Accrued Liabilities - Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Prepaid maintenance expenses | $ 4,018 | $ 3,065 |
Broadband contract acquisition and fulfillment costs | 4,417 | 4,898 |
Interest rate swaps | 0 | 1,382 |
Other | 1,196 | 1,833 |
Prepaid expenses and other | $ 9,631 | $ 11,178 |
Other Assets and Accrued Liab_4
Other Assets and Accrued Liabilities - Long-Term Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Broadband contract acquisition and fulfillment costs | $ 10,252 | $ 6,107 |
Prepaid expenses and other | 1,398 | 1,908 |
Interest rate swaps | 0 | 1,252 |
Deferred charges and other assets | $ 11,650 | $ 9,267 |
Other Assets and Accrued Liab_5
Other Assets and Accrued Liabilities - Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Interest rate swaps | $ 4,048 | $ 0 |
Accrued programming costs | 2,868 | 3,023 |
Sales and property taxes payable | 1,072 | 919 |
Other current liabilities | 5,881 | 3,614 |
Accrued liabilities and other | $ 13,869 | $ 7,556 |
Other Assets and Accrued Liab_6
Other Assets and Accrued Liabilities - Long Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Noncurrent portion of deferred lease revenue | $ 18,687 | $ 12,449 |
FCC spectrum license obligations | 3,845 | 1,699 |
Noncurrent portion of financing leases | 1,492 | 1,591 |
Other | 881 | 1,252 |
Other liabilities | $ 24,905 | $ 16,991 |
Other Assets and Accrued Liab_7
Other Assets and Accrued Liabilities - Asset Removal Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Balance at beginning of year | $ 6,152 | $ 8,808 | $ 4,619 |
Additional liabilities accrued | 262 | 593 | 1,273 |
Changes to prior estimates | (1,633) | (3,659) | 2,568 |
Payments | 0 | 0 | 0 |
Accretion expense | 332 | 410 | 348 |
Balance at end of year | $ 5,113 | $ 6,152 | $ 8,808 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term | 23 years |
Operating lease, weighted average discount rate, percent | 4.70% |
Finance lease, weighted average remaining lease term | 14 years |
Finance lease, weighted average discount rate, percent | 5.20% |
Operating lease, cost | $ 6.6 |
Finance lease, cost | 0.6 |
Operating lease, payments | 4.4 |
Right-of-use asset obtained in exchange for operating lease liability | 6.8 |
Sublease income | $ 9.1 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liability - Lessee (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Leases | |
2021 | $ 4,046 |
2022 | 4,282 |
2023 | 3,826 |
2024 | 3,477 |
2025 | 3,250 |
2026 and thereafter | 64,739 |
Total lease payments | 83,620 |
Less: Interest | 35,555 |
Present value of lease liabilities | 48,065 |
Finance Leases | |
2021 | 174 |
2022 | 174 |
2023 | 174 |
2024 | 174 |
2025 | 174 |
2026 and thereafter | 1,354 |
Total lease payments | 2,224 |
Less: Interest | 636 |
Present value of lease liabilities | 1,588 |
Total | |
2021 | 4,220 |
2022 | 4,456 |
2023 | 4,000 |
2024 | 3,651 |
2025 | 3,424 |
2026 and thereafter | 66,093 |
Total lease payments | 85,844 |
Less: Interest | 36,191 |
Present value of lease liabilities | $ 49,653 |
Leases - Maturity of Lease Li_2
Leases - Maturity of Lease Liability - Lessor (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 6,292 |
2022 | 5,236 |
2023 | 3,618 |
2024 | 2,410 |
2025 | 1,320 |
2026 and thereafter | 3,805 |
Total | $ 22,681 |
Debt (Details)
Debt (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 18,600,000 | $ 27,600,000 |
Total leverage ratio through December 31, 2019 | 3.25 | |
Total leverage ratio thereafter | 3 | |
Debt service coverage ratio, actual | 6.6 | |
Covenants minimum liquidity amount | $ 25,000,000 | |
Maximum | ||
Debt Instrument [Line Items] | ||
Amended 2016 credit agreement, limit of dividends paid, distributions and redemption of capital stock | $ 25,000,000 | |
Amended 2016 credit agreement, limit of consolidated net income (as a percent) | 60.00% | |
Total leverage ratio from closing date through December 31, 2018 | 3.50 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Debt service coverage ratio, actual | 2 | |
Term loan A-1 | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Term loan A-2 | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 75,000,000 | |
Term of credit facility | 5 years |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total | $ 697,918 | $ 732,040 |
Less: unamortized loan fees | 9,455 | 11,926 |
Total debt, net of unamortized loan fees | 688,463 | 720,114 |
Term loan A-1 | ||
Debt Instrument [Line Items] | ||
Total | 229,437 | 258,571 |
Term loan A-2 | ||
Debt Instrument [Line Items] | ||
Total | $ 468,481 | $ 473,469 |
Debt - Financial Covenants in C
Debt - Financial Covenants in Credit Agreements (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Disclosure [Abstract] | |
Total leverage ratio, actual | 2 |
Debt service coverage ratio, actual | 6.6 |
Minimum liquidity balance, actual | $ 270,400,000 |
Ratio of indebtedness to EBITDA | 3.25 |
Minimum debt service coverage ratio | 2 |
Covenants minimum liquidity amount | $ 25,000,000 |
Derivative and Hedging - Narrat
Derivative and Hedging - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 3.2 | |
Not Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Percentage hedged | 41.00% | |
Notional amount of interest rate swaps | $ 289.4 | $ 339.8 |
Interest Rate Swap, May 2016 | Not Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Interest rate | 1.16% |
Derivative and Hedging - Schedu
Derivative and Hedging - Schedule of Derivative Instruments (Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 0 | $ 1,252 |
Interest rate swaps | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 4,048 | 2,634 |
Interest rate swaps | Designated as Hedging Instrument | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 1,382 |
Interest rate swaps | Designated as Hedging Instrument | Deferred charges and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 1,252 |
Interest rate swaps | Designated as Hedging Instrument | Accrued liabilities and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 4,048 | $ 0 |
Derivative and Hedging - Sche_2
Derivative and Hedging - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax (Expense) Benefit | |||
Balance as of December 31, 2019 | $ (2,326) | ||
Net change in unrealized (loss) gain | 2,806 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense | (1,138) | ||
Net current period other comprehensive (loss) income | 1,668 | ||
Balance as of December 31, 2020 | (658) | $ (2,326) | |
Accumulated Other Comprehensive Income (Loss), net of taxes | |||
Balance as of December 31, 2019 | 308 | ||
Net change in unrealized (loss) gain | (5,638) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense | 624 | ||
Net current period other comprehensive (loss) income | (5,014) | (7,972) | $ 50 |
Balance as of December 31, 2020 | (4,706) | 308 | |
Gains (Losses) on Cash Flow Hedges | |||
Gains (Losses) on Cash Flow Hedges | |||
Balance as of December 31, 2019 | 2,634 | ||
Net change in unrealized (loss) gain | (8,444) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense | 1,762 | ||
Net current period other comprehensive (loss) income | (6,682) | ||
Balance as of December 31, 2020 | $ (4,048) | $ 2,634 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||
Cash paid for income taxes | $ 11,200,000 | |
Proceeds from income tax refunds | $ 9,500,000 | |
Deferred tax assets, operating loss carryforwards, state and local | 7,723,000 | 10,071,000 |
Unrecognized tax benefits | 0 | $ 0 |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 36,700,000 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 100,000 |
Income Taxes - Components of Fe
Income Taxes - Components of Federal and State Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current (benefit) expense | |||
Federal taxes | $ (13,748) | $ (16,393) | $ (6,033) |
State taxes | (2,148) | (282) | 833 |
Total current provision | (15,896) | (16,675) | (5,200) |
Deferred expense (benefit) | |||
Federal taxes | 13,729 | 16,453 | 4,433 |
State taxes | 1,581 | 395 | (576) |
Total deferred provision | 15,310 | 16,848 | 3,857 |
Income tax (benefit) expense | $ (586) | $ 173 | $ (1,343) |
Effective tax rate | (28.70%) | 6.80% | (183.00%) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Expected tax expense at federal statutory | $ 428 | $ 538 | $ 154 |
State income taxes, net of federal tax effect | 54 | 15 | (202) |
Revaluation of U.S. deferred income taxes | 0 | 0 | (760) |
Excess tax benefit from share based compensation and other, net | (1,068) | (380) | (535) |
Income tax (benefit) expense | $ (586) | $ 173 | $ (1,343) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Leases | $ 123,129 | $ 106,564 |
Asset retirement obligations | 10,403 | 9,957 |
Net operating loss carry-forwards | 7,723 | 10,071 |
Pension liabilities | 3,868 | 3,161 |
Accruals and stock based compensation | 3,093 | 1,935 |
Other | 5,002 | 1,408 |
Total gross deferred tax assets | 153,218 | 133,096 |
Less valuation allowance | 0 | 0 |
Net deferred tax assets | 153,218 | 133,096 |
Deferred tax liabilities: | ||
Property, plant and equipment | 127,602 | 110,676 |
Leases | 126,458 | 105,475 |
Intangible assets | 25,722 | 27,201 |
Prepaid assets and other | 24,088 | 27,311 |
Total gross deferred tax liabilities | 303,870 | 270,663 |
Net deferred tax liabilities | $ 150,652 | $ 137,567 |
Earnings per Share & Stock Co_3
Earnings per Share & Stock Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)plan$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock incentive plans | plan | 2 | ||
Compensation, nonvested awards, compensation cost not yet recognized | $ | $ 3.7 | $ 3.7 | |
Compensation, nonvested awards, cost not yet recognized, period for recognition | 2 years 7 months 6 days | 2 years 7 months 6 days | |
Anti-dilutive awards outstanding (fewer than)(in shares) | 110,000 | 110,000 | 110,000 |
The 2005 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance (in shares) | 2,880,000 | ||
The 2014 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional number of shares authorized for issuance (in shares) | 3,000,000 | ||
Restricted Stock Units (RSUs) | The 2005 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Restricted Stock Units (RSUs) | The 2014 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Restricted Stock Units (RSUs) | Employees And Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 96,000 | ||
Granted (in dollars per share) | $ / shares | $ 49.02 | ||
Relative Total Shareholder Return Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Relative Total Shareholder Return Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued (as a percent) | 0.00% | ||
Relative Total Shareholder Return Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued (as a percent) | 150.00% | ||
Relative Total Shareholder Return Awards | Employees And Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 40,000 | ||
Granted (in dollars per share) | $ / shares | $ 56.32 |
Earnings per Share & Stock Co_4
Earnings per Share & Stock Compensation - Schedule of Stock Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Stock compensation expense | $ 6,227 | $ 3,732 | $ 5,153 |
Capitalized stock compensation | 320 | 365 | 408 |
Stock compensation expense, net | $ 5,907 | $ 3,367 | $ 4,745 |
Earnings per Share & Stock Co_5
Earnings per Share & Stock Compensation - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||||||||||
Income from continuing operations | $ 1,600 | $ 1,412 | $ (536) | $ 150 | $ (896) | $ 1,168 | $ 1,509 | $ 607 | $ 2,626 | $ 2,388 | $ 2,077 |
Income from discontinued operations, net of tax | 47,675 | 33,509 | 29,784 | 13,129 | 15,439 | 13,186 | 11,640 | 13,303 | 124,097 | 53,568 | 44,518 |
Net income | $ 49,275 | $ 34,921 | $ 29,248 | $ 13,279 | $ 14,543 | $ 14,354 | $ 13,149 | $ 13,910 | $ 126,723 | $ 55,956 | $ 46,595 |
Basic weighted average shares outstanding (in shares) | 49,901 | 49,811 | 49,542 | ||||||||
Basic - Income from continuing operations (in dollars per share) | $ 0.03 | $ 0.03 | $ (0.01) | $ 0 | $ (0.01) | $ 0.02 | $ 0.03 | $ 0.01 | $ 0.05 | $ 0.05 | $ 0.04 |
Basic - Income from discontinued operations, net of tax (in dollars per share) | 0.96 | 0.67 | 0.59 | 0.27 | 0.30 | 0.27 | 0.23 | 0.27 | 2.49 | 1.07 | 0.90 |
Basic net income per share (in dollars per share) | 0.99 | 0.70 | 0.58 | 0.27 | 0.29 | 0.29 | 0.26 | 0.28 | $ 2.54 | $ 1.12 | $ 0.94 |
Effect from dilutive shares and options outstanding (in shares) | 123 | 290 | 521 | ||||||||
Weighted average shares outstanding, diluted (in shares) | 50,024 | 50,101 | 50,063 | ||||||||
Diluted - Income from continuing operations (in dollars per share) | 0.03 | 0.03 | (0.01) | 0 | (0.01) | 0.02 | 0.03 | 0.01 | $ 0.05 | $ 0.05 | $ 0.04 |
Diluted - Income from discontinued operations, net of tax (in dollars per share) | 0.95 | 0.67 | 0.59 | 0.27 | 0.30 | 0.27 | 0.23 | 0.27 | 2.48 | 1.07 | 0.89 |
Diluted net income per share (in dollars per share) | $ 0.98 | $ 0.70 | $ 0.58 | $ 0.27 | $ 0.29 | $ 0.29 | $ 0.26 | $ 0.28 | $ 2.53 | $ 1.12 | $ 0.93 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) | Dec. 31, 2020USD ($) |
FCC spectrum licenses | |
Other Commitments [Line Items] | |
Other commitment, annual payments | $ 108,000 |
Segment Reporting - Selected Fi
Segment Reporting - Selected Financial Data for Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
External revenue | |||||||||||
Service revenue and other | $ 58,132 | $ 55,173 | $ 54,336 | $ 53,134 | $ 53,602 | $ 51,814 | $ 51,551 | $ 49,895 | $ 220,775 | $ 206,862 | $ 192,683 |
Operating expenses | |||||||||||
Cost of services | 88,203 | 82,949 | 80,418 | ||||||||
Selling, general and administrative | 85,016 | 77,846 | 70,844 | ||||||||
Depreciation and amortization | 48,703 | 46,786 | 44,390 | ||||||||
Total operating expenses | 221,922 | 207,581 | 195,652 | ||||||||
Operating loss | $ 1,614 | $ 470 | $ (1,867) | $ (1,364) | $ (550) | $ 681 | $ 915 | $ (1,765) | (1,147) | (719) | (2,969) |
Capital expenditures | 120,450 | 67,048 | 56,631 | ||||||||
Operating Segments | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 204,347 | 193,943 | 183,120 | ||||||||
Operating expenses | |||||||||||
Selling, general and administrative | 39,472 | 33,545 | 28,103 | ||||||||
Depreciation and amortization | 41,076 | 38,566 | 35,992 | ||||||||
Total operating expenses | 163,987 | 151,346 | 140,826 | ||||||||
Operating loss | 40,360 | 42,597 | 42,294 | ||||||||
Capital expenditures | 117,246 | 60,627 | 43,197 | ||||||||
Operating Segments | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 17,055 | 12,985 | 12,196 | ||||||||
Operating expenses | |||||||||||
Selling, general and administrative | 1,430 | 937 | 704 | ||||||||
Depreciation and amortization | 1,906 | 1,976 | 2,406 | ||||||||
Total operating expenses | 8,232 | 6,690 | 6,797 | ||||||||
Operating loss | 8,823 | 6,295 | 5,399 | ||||||||
Capital expenditures | 2,001 | 921 | 6,145 | ||||||||
Intersegment Eliminations | |||||||||||
External revenue | |||||||||||
Service revenue and other | 18,015 | 16,346 | 12,289 | ||||||||
Intersegment Eliminations | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 8,989 | 10,392 | 9,906 | ||||||||
Intersegment Eliminations | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 9,653 | 6,020 | 5,016 | ||||||||
Intersegment Eliminations | Corporate & Eliminations | |||||||||||
External revenue | |||||||||||
Service revenue and other | (627) | (66) | (2,633) | ||||||||
Corporate, Non-Segment | |||||||||||
Operating expenses | |||||||||||
Selling, general and administrative | 44,114 | 43,364 | 42,037 | ||||||||
Depreciation and amortization | 5,721 | 6,244 | 5,992 | ||||||||
Total operating expenses | 49,703 | 49,545 | 48,029 | ||||||||
Operating loss | (50,330) | (49,611) | (50,662) | ||||||||
Capital expenditures | 1,203 | 5,500 | 7,289 | ||||||||
Residential & SMB | Operating Segments | |||||||||||
External revenue | |||||||||||
Service revenue and other | 154,956 | 142,290 | 131,512 | ||||||||
Residential & SMB | Operating Segments | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 154,956 | 142,290 | 131,512 | ||||||||
Residential & SMB | Operating Segments | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 0 | 0 | 0 | ||||||||
Commercial Fiber | Operating Segments | |||||||||||
External revenue | |||||||||||
Service revenue and other | 24,431 | 23,004 | 22,090 | ||||||||
Commercial Fiber | Operating Segments | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 24,431 | 23,004 | 22,090 | ||||||||
Commercial Fiber | Operating Segments | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 0 | 0 | 0 | ||||||||
RLEC & Other | Operating Segments | |||||||||||
External revenue | |||||||||||
Service revenue and other | 15,971 | 18,257 | 19,612 | ||||||||
RLEC & Other | Operating Segments | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 15,971 | 18,257 | 19,612 | ||||||||
RLEC & Other | Operating Segments | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 0 | 0 | 0 | ||||||||
Tower lease | Operating Segments | |||||||||||
External revenue | |||||||||||
Service revenue and other | 7,402 | 6,965 | 7,180 | ||||||||
Tower lease | Operating Segments | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 0 | 0 | 0 | ||||||||
Tower lease | Operating Segments | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 7,402 | 6,965 | 7,180 | ||||||||
Service revenue and other | Operating Segments | |||||||||||
External revenue | |||||||||||
Service revenue and other | 202,760 | 190,516 | 180,394 | ||||||||
Service revenue and other | Operating Segments | Broadband | |||||||||||
External revenue | |||||||||||
Service revenue and other | 195,358 | 183,551 | 173,214 | ||||||||
Service revenue and other | Operating Segments | Tower | |||||||||||
External revenue | |||||||||||
Service revenue and other | 7,402 | 6,965 | 7,180 | ||||||||
Cost of services | |||||||||||
Operating expenses | |||||||||||
Cost of services | 88,203 | 82,949 | 80,418 | ||||||||
Cost of services | Operating Segments | Broadband | |||||||||||
Operating expenses | |||||||||||
Cost of services | 83,439 | 79,235 | 76,731 | ||||||||
Cost of services | Operating Segments | Tower | |||||||||||
Operating expenses | |||||||||||
Cost of services | 4,896 | 3,777 | 3,687 | ||||||||
Cost of services | Corporate, Non-Segment | |||||||||||
Operating expenses | |||||||||||
Cost of services | $ (132) | $ (63) | $ 0 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of income from continuing operations from segments to consolidated [Abstract] | |||||||||||
Total consolidated operating loss | $ 1,614 | $ 470 | $ (1,867) | $ (1,364) | $ (550) | $ 681 | $ 915 | $ (1,765) | $ (1,147) | $ (719) | $ (2,969) |
Other income, net | 3,187 | 3,280 | 3,703 | ||||||||
Income from continuing operations before income taxes | $ 2,040 | $ 2,561 | $ 734 |
Quarterly Results (unaudited)_2
Quarterly Results (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 58,132 | $ 55,173 | $ 54,336 | $ 53,134 | $ 53,602 | $ 51,814 | $ 51,551 | $ 49,895 | $ 220,775 | $ 206,862 | $ 192,683 |
Operating (loss) income | 1,614 | 470 | (1,867) | (1,364) | (550) | 681 | 915 | (1,765) | (1,147) | (719) | (2,969) |
Income from continuing operations | 1,600 | 1,412 | (536) | 150 | (896) | 1,168 | 1,509 | 607 | 2,626 | 2,388 | 2,077 |
Income from discontinued operations, net of tax | 47,675 | 33,509 | 29,784 | 13,129 | 15,439 | 13,186 | 11,640 | 13,303 | 124,097 | 53,568 | 44,518 |
Net income | $ 49,275 | $ 34,921 | $ 29,248 | $ 13,279 | $ 14,543 | $ 14,354 | $ 13,149 | $ 13,910 | $ 126,723 | $ 55,956 | $ 46,595 |
Basic - Income from continuing operations (in dollars per share) | $ 0.03 | $ 0.03 | $ (0.01) | $ 0 | $ (0.01) | $ 0.02 | $ 0.03 | $ 0.01 | $ 0.05 | $ 0.05 | $ 0.04 |
Basic - Income from discontinued operations, net of tax (in dollars per share) | 0.96 | 0.67 | 0.59 | 0.27 | 0.30 | 0.27 | 0.23 | 0.27 | 2.49 | 1.07 | 0.90 |
Net income per share - basic (in dollars per share) | 0.99 | 0.70 | 0.58 | 0.27 | 0.29 | 0.29 | 0.26 | 0.28 | 2.54 | 1.12 | 0.94 |
Diluted - Income from continuing operations (in dollars per share) | 0.03 | 0.03 | (0.01) | 0 | (0.01) | 0.02 | 0.03 | 0.01 | 0.05 | 0.05 | 0.04 |
Diluted - Income from discontinued operations, net of tax (in dollars per share) | 0.95 | 0.67 | 0.59 | 0.27 | 0.30 | 0.27 | 0.23 | 0.27 | 2.48 | 1.07 | 0.89 |
Net income per share - diluted (in dollars per share) | $ 0.98 | $ 0.70 | $ 0.58 | $ 0.27 | $ 0.29 | $ 0.29 | $ 0.26 | $ 0.28 | $ 2.53 | $ 1.12 | $ 0.93 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts and Reserves (Details) - SEC Schedule, 12-09, Allowance, Credit Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 533 | $ 534 | $ 466 |
Recoveries added to allowance | 758 | 649 | 631 |
Bad debt expense | 1,220 | 1,743 | 1,983 |
Write-offs | (1,897) | (2,393) | (2,546) |
Balance at End of Year | $ 614 | $ 533 | $ 534 |