Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 01, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity File Number | 001-12593 | ||
Entity Registrant Name | ATN INTERNATIONAL, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-0728886 | ||
Entity Address, Address Line One | 500 Cummings Center | ||
Entity Address, City or Town | Beverly | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01915 | ||
City Area Code | 978 | ||
Local Phone Number | 619-1300 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | ATNI | ||
Security Exchange Name | NASDAQ | ||
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 | $ 672 | ||
Entity Common Stock, Shares Outstanding | 15,898,477 | ||
Entity Central Index Key | 0000879585 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | $ 103,925 | $ 161,287 |
Restricted cash | 1,072 | 1,071 |
Short-term investments | 416 | |
Accounts receivable, net of allowances for credit losses of $12.1 million and $12.7 million, respectively | 45,379 | 35,904 |
Inventory, materials and supplies | 5,504 | 5,253 |
Prepayments and other current assets | 49,450 | 24,792 |
Assets held for sale | 34,735 | |
Total current assets | 240,065 | 228,723 |
Fixed Assets: | ||
Property, plant and equipment | 1,252,780 | 1,237,555 |
Less accumulated depreciation | (716,318) | (631,974) |
Net fixed assets | 536,462 | 605,581 |
Telecommunication licenses, net | 114,083 | 93,686 |
Goodwill | 60,691 | 60,691 |
Customer relationships, net | 5,913 | 7,441 |
Operating lease right-of-use assets | 63,235 | 68,763 |
Other assets | 63,262 | 65,841 |
Total assets | 1,083,711 | 1,130,726 |
Current Liabilities: | ||
Current portion of long-term debt | 3,750 | 3,750 |
Accounts payable and accrued liabilities | 96,205 | 74,093 |
Dividends payable | 2,703 | 2,721 |
Accrued taxes | 7,501 | 8,517 |
Current portion of lease liabilities | 12,371 | 11,406 |
Advance payments and deposits | 24,681 | 19,182 |
Liabilities held for sale | 717 | |
Total current liabilities | 147,928 | 119,669 |
Deferred income taxes | 10,675 | 8,680 |
Lease liabilities, excluding current portion | 51,082 | 56,164 |
Other liabilities | 50,617 | 57,454 |
Long-term debt, excluding current portion | 69,073 | 82,676 |
Total liabilities | 329,375 | 324,643 |
Commitments and contingencies (Note 14) | ||
ATN International, Inc. Stockholders' Equity: | ||
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value per share; 50,000,000 shares authorized; 17,383,898 and 17,324,858 shares issued, respectively, 15,898,477 and 16,001,937 shares outstanding, respectively | 172 | 172 |
Treasury stock, at cost; 1,485,421 and 1,322,921 shares, respectively | (59,456) | (51,129) |
Additional paid-in capital | 187,754 | 188,471 |
Retained earnings | 516,901 | 541,890 |
Accumulated other comprehensive income | 278 | (3,282) |
Total ATN International, Inc. stockholders' equity | 645,649 | 676,122 |
Non-controlling interests | 108,687 | 129,961 |
Total equity | 754,336 | 806,083 |
Total liabilities and equity | $ 1,083,711 | $ 1,130,726 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowances (in dollars) | $ 12,121 | $ 12,724 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 17,383,898 | 17,324,858 |
Common stock, shares outstanding | 15,898,477 | 16,001,937 |
Treasury stock, shares | 1,485,421 | 1,322,921 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUE: | |||
Total revenue | $ 455,444 | $ 438,722 | $ 451,207 |
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated): | |||
Termination and access fees | 111,763 | 112,943 | 114,478 |
Construction costs | 10,616 | ||
Engineering and operations | 73,350 | 77,649 | 73,031 |
Sales, marketing and customer service | 37,557 | 38,730 | 35,207 |
General and administrative | 101,454 | 100,534 | 104,267 |
Transaction-related charges | 1,641 | 244 | 2,642 |
Restructuring charges | 515 | ||
Depreciation and amortization | 88,311 | 89,125 | 85,719 |
Goodwill impairment | 0 | 3,279 | 0 |
Loss on disposition of long-lived assets | 21,572 | 2,841 | (26,425) |
Loss on damaged assets and other hurricane related charges, net of insurance recovery | 750 | ||
Total operating expenses | 446,264 | 425,345 | 390,184 |
Income from operations | 9,180 | 13,377 | 61,023 |
OTHER INCOME (EXPENSE) | |||
Interest income | 421 | 2,263 | 1,811 |
Interest expense | (5,347) | (5,010) | (7,973) |
Other income (expense) | (4,161) | (4,558) | (1,119) |
Other income (expense), net | (9,087) | (7,305) | (7,281) |
INCOME BEFORE INCOME TAXES | 93 | 6,072 | 53,742 |
Income tax provisions | 801 | 4,105 | 18,870 |
NET INCOME | (708) | 1,967 | 34,872 |
Net income attributable to non-controlling interests, net of tax expense of $1.1 million, $1.3 million, and $1.5 million, respectively. | (13,414) | (12,773) | (15,057) |
NET INCOME (LOSS) ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS | $ (14,122) | $ (10,806) | $ 19,815 |
NET INCOME (LOSS) PER WEIGHTED AVERAGE SHARE ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS: | |||
Basic (in dollars per share) | $ (0.89) | $ (0.68) | $ 1.24 |
Diluted (in dollars per share) | $ (0.89) | $ (0.68) | $ 1.24 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||
Basic (in shares) | 15,923 | 15,983 | 15,988 |
Diluted (in shares) | 15,923 | 15,983 | 16,042 |
DIVIDENDS PER SHARE APPLICABLE TO COMMON STOCK (in dollars per share) | $ 0.68 | $ 0.68 | $ 0.68 |
Communication services | |||
REVENUE: | |||
Total revenue | $ 433,509 | $ 428,108 | $ 425,323 |
Other | |||
REVENUE: | |||
Total revenue | $ 21,935 | $ 10,614 | $ 25,884 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Noncontrolling interest income tax expense | $ 1.1 | $ 1.3 | $ 1.5 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income | $ (708) | $ 1,967 | $ 34,872 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 37 | (1,041) | (4,390) |
Unrealized gain (loss) on derivatives | (101) | (187) | 78 |
Reclassification of foreign currency losses on assets held for sale | 6,036 | ||
Projected pension and postretirement benefit obligation, net of tax expense of $0.1 million, $0.1 million and $0.6 million, respectively | (2,412) | (445) | (840) |
Other comprehensive income (loss), net of tax | 3,560 | (1,673) | (5,152) |
Comprehensive income | 2,852 | 294 | 29,720 |
Less: Comprehensive income attributable to non-controlling interests | (13,414) | (12,773) | (15,057) |
Comprehensive income (loss) attributable to ATN International, Inc. | $ (10,562) | $ (12,479) | $ 14,663 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Projected pension benefit obligation, tax expense | $ 0.1 | $ 0.1 | $ 0.6 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total ATNI Stockholders' EquityCumulative Effect, Period of Adoption, Adjustment | Total ATNI Stockholders' Equity | Common Stock | Treasury Stock, at cost | Additional Paid In Capital | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accumulated Other Comprehensive Income/(Loss)Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income/(Loss) | Non-Controlling InterestsCumulative Effect, Period of Adoption, Adjustment | Non-Controlling Interests | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balance, beginning of period at Dec. 31, 2017 | $ 1,490 | $ 688,727 | $ 170 | $ (36,110) | $ 167,973 | $ 1,693 | $ 552,948 | $ (203) | $ 3,746 | $ 1,146 | $ 141,496 | $ 2,636 | $ 830,223 |
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Issuance of restricted shares of common stock | 2 | 2 | 2 | ||||||||||
Issuance of shares of common stock upon exercise of stock options | 6,319 | 6,319 | 6,319 | ||||||||||
Purchase of shares of common stock | (12,437) | (12,437) | (12,437) | ||||||||||
Stock-based compensation | 6,420 | 6,420 | 6,420 | ||||||||||
Dividends declared on common stock | (10,863) | (10,863) | (10,863) | ||||||||||
Distributions to non-controlling interests | (19,033) | (19,033) | |||||||||||
Repurchase of non-controlling interests | 1,066 | 1,066 | (10,729) | (9,663) | |||||||||
Comprehensive income: | |||||||||||||
Net income (loss) | 19,815 | 19,815 | 15,057 | 34,872 | |||||||||
Other comprehensive income (loss) | (5,152) | (5,152) | (5,152) | ||||||||||
Comprehensive income | 14,663 | 15,057 | 29,720 | ||||||||||
Balance, end of period at Dec. 31, 2018 | 695,387 | 172 | (48,547) | 181,778 | 563,593 | (1,609) | 127,937 | 823,324 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Issuance of shares of common stock upon exercise of stock options | 771 | 771 | 771 | ||||||||||
Purchase of shares of common stock | (2,582) | (2,582) | (2,582) | ||||||||||
Stock-based compensation | 5,922 | 5,922 | 462 | 6,384 | |||||||||
Dividends declared on common stock | (10,897) | (10,897) | (10,897) | ||||||||||
Distributions to non-controlling interests | (7,195) | (7,195) | |||||||||||
Repurchase of non-controlling interests | (4,504) | (4,504) | |||||||||||
Investments made by minority shareholders in consolidated affiliates | 488 | 488 | |||||||||||
Comprehensive income: | |||||||||||||
Net income (loss) | (10,806) | (10,806) | 12,773 | 1,967 | |||||||||
Other comprehensive income (loss) | (1,673) | (1,673) | (1,673) | ||||||||||
Comprehensive income | (12,479) | 12,773 | 294 | ||||||||||
Balance, end of period at Dec. 31, 2019 | 676,122 | 172 | (51,129) | 188,471 | 541,890 | (3,282) | 129,961 | 806,083 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Purchase of shares of common stock | (8,327) | (8,327) | (8,327) | ||||||||||
Stock-based compensation | 5,603 | 5,603 | 309 | 5,912 | |||||||||
Dividends declared on common stock | (10,867) | (10,867) | (10,867) | ||||||||||
Distributions to non-controlling interests | (12,378) | (12,378) | |||||||||||
Repurchase of non-controlling interests | (5,020) | (5,020) | (23,919) | (28,939) | |||||||||
Investments made by minority shareholders in consolidated affiliates | (1,300) | (1,300) | 1,300 | ||||||||||
Comprehensive income: | |||||||||||||
Net income (loss) | (14,122) | (14,122) | 13,414 | (708) | |||||||||
Other comprehensive income (loss) | 3,560 | 3,560 | 3,560 | ||||||||||
Comprehensive income | (10,562) | 13,414 | 2,852 | ||||||||||
Balance, end of period at Dec. 31, 2020 | $ 645,649 | $ 172 | $ (59,456) | $ 187,754 | $ 516,901 | $ 278 | $ 108,687 | $ 754,336 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF EQUITY | |||
Issuance of shares of common stock upon exercise of stock options | 17,000 | 158,021 | |
Purchase of shares of common stock | 161,500 | 45,807 | 171,907 |
Dividends declared on common stock (dollars per per share) | $ 0.68 | $ 0.68 | $ 0.68 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Cash flows from operating activities: | |||
Net income | $ (708) | $ 1,967 | $ 34,872 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Depreciation and amortization | 88,311 | 89,125 | 85,719 |
Provision for doubtful accounts | 5,010 | 5,816 | 5,134 |
Amortization of debt discount and debt issuance costs | 530 | 542 | 763 |
Stock-based compensation | 5,912 | 6,384 | 6,420 |
Deferred income taxes | (7,317) | (2,192) | (23,242) |
Loss on equity investments | 3,427 | 4,724 | |
(Gain) loss on disposition of long-lived assets | 21,572 | 2,841 | (26,425) |
Goodwill impairment | 0 | 3,279 | 0 |
Unrealized loss on foreign currency | 357 | 362 | 1,342 |
Other non-cash activity | (42) | 308 | |
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions: | |||
Accounts receivable | (17,774) | (3,511) | (1,682) |
Materials and supplies, prepayments, and other current assets | (18,624) | (1,613) | 5,924 |
Prepaid income taxes | 2,218 | 4,581 | 3,147 |
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities | 12,597 | (2,536) | (7,044) |
Accrued taxes | 799 | (19,053) | 29,089 |
Other assets | (8,790) | (5,711) | (238) |
Other liabilities | (1,236) | 2,940 | 1,778 |
Net cash provided by operating activities | 86,284 | 87,903 | 115,865 |
Cash flows from investing activities: | |||
Capital expenditures | (75,323) | (72,602) | (105,769) |
Hurricane rebuild capital expenditures | (123) | (80,152) | |
Hurricane insurance proceeds | 34,606 | ||
Receipt of government grants | 16,316 | 3,140 | 5,400 |
Divestiture of businesses, net of transferred cash of $0.0 million, $0.0 million, and $11.5 million, respectively | 6,572 | 48,270 | |
Purchase of spectrum; including deposits | (20,396) | ||
Purchases of strategic investments | (2,768) | (25,362) | (3,000) |
Proceeds from strategic investments | 11,969 | ||
Purchase of short-term investments | (116) | (8,028) | (138) |
Proceeds from disposition of long-lived assets | 6,900 | ||
Proceeds from sale of short-term investments | 120 | 8,141 | 6,564 |
Net cash used in investing activities | (70,198) | (88,262) | (87,319) |
Cash flows from financing activities: | |||
Dividends paid on common stock | (10,891) | (10,880) | (10,866) |
Distributions to non-controlling interests | (10,368) | (7,161) | (18,780) |
Payment of debt issuance costs | (1,096) | (1,340) | |
Principal repayments of term loan | (13,751) | (4,700) | (9,795) |
Proceeds from stock option exercises | 72 | ||
Purchases of common stock - stock-based compensation | (1,733) | (1,649) | (4,622) |
Purchases of common stock - share repurchase plan | (6,589) | (162) | (1,576) |
Repurchases of non-controlling interests | (28,939) | (4,504) | (9,663) |
Investments made by minority shareholders in consolidated affiliates | 488 | ||
Net cash used in financing activities | (73,367) | (29,908) | (55,230) |
Effect of foreign currency exchange rates on cash and cash equivalents | (80) | (282) | (299) |
Net change in cash, cash equivalents, and restricted cash | (57,361) | (30,549) | (26,983) |
Total cash, cash equivalents, and restricted cash, beginning of period | 162,358 | 192,907 | 219,890 |
Total cash, cash equivalents, and restricted cash, end of period | 104,997 | 162,358 | 192,907 |
Supplemental cash flow information: | |||
Interest paid | 4,829 | 4,554 | 7,235 |
Taxes paid | 6,117 | 30,411 | 12,486 |
Dividends declared, not paid | 2,703 | 2,721 | 2,720 |
Noncash investing activity: | |||
Transfer (to) from operating activities to property, plant and equipment | (1,219) | 6,708 | |
Purchases of property, plant and equipment included in accounts payable and accrued expenses | $ 21,746 | $ 11,668 | $ 12,877 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Net of transferred cash | $ 0 | $ 0 | $ 11.5 |
ORGANIZATION AND BUSINESS OPERA
ORGANIZATION AND BUSINESS OPERATIONS | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND BUSINESS OPERATIONS | |
ORGANIZATION AND BUSINESS OPERATIONS | 1. ORGANIZATION AND BUSINESS OPERATIONS The Company strives to be a leading platform for the operation of, and investment in, smaller and specialty market communications services and technology companies. The Company has a long track record of delivering critical infrastructure-based solutions to underserved markets. At the holding company level, the Company oversees the allocation of capital within and among its subsidiaries, affiliates, minority investments, and stockholders. The Company also has developed significant operational expertise and resources that it uses to augment the capabilities of its individual operating subsidiaries. Over the past ten years, the Company has built a platform of resources and expertise to support its operating subsidiaries and to improve their quality of service, and customer acquisition, retention, and satisfaction while maintaining optimal operating efficiencies. The Company has a number of shared service functions, including billing, network and engineering and customer service, and the parent company also employs personnel with specialized skills that provide greater economies of scale and expertise than would typically be available at the operating subsidiary level. The Company was incorporated in Delaware in 1987, began trading publicly in 1991 and spun off more than half of its operations to stockholders in 1998. The Company actively evaluates potential acquisitions, investment opportunities and other strategic transactions, both domestic and international, that it believes has the potential for generating steady excess cash flows over extended periods of time. In addition, the Company considers non-controlling investments in earlier stage businesses that it considers strategically relevant, and which may offer long-term growth potential for us, either individually, or as research and development businesses that can support the Company’s operating subsidiaries in new technology, product, and service development and offerings. The Company has used the cash generated from its established operating units, and any asset sales, to re-invest in its existing businesses, to make strategic investments in additional businesses, and to return cash to the Company’s investors. The Company provides management, technical, financial, regulatory, and marketing services to its subsidiaries and typically receive a management fee equal to a percentage of their revenues, which is eliminated in consolidation. For further information about the Company’s financial segments and geographical information about its operating revenues and assets, see Notes 1 and 15 to the Consolidated Financial Statements included in this Report. Through December 31, 2020, the Company had identified three operating segments to manage and review its operations and to facilitate investor presentations of its results. Those three operating segments are as follows: ● International Telecom. Businesses contained in the Company’s international telecom segment offer a mix of fixed data, internet and voice services (“Fixed”) as well as retail mobility (“Mobility”) services to customers in Bermuda, the Cayman Islands, Guyana and the US Virgin Islands. The Company offers fixed video services in Bermuda, the Cayman Islands, and the US Virgin Islands and managed information technology services (“Managed Services”) to enterprise customers in all its markets. The Company also offers services to other telecom providers (“Carrier Services”), such as international long-distance, transport and access services, and roaming from such telecom providers’ customers traveling in its network service areas. ● US Telecom. In the United States, primarily in the Southwest, the Company offers Carrier Services, including wholesale roaming services, the leasing of critical network infrastructure such as towers and transport facilities, and site maintenance. The Company also provides Fixed, Mobility, and Managed Services to its retail and enterprise customers, and private network services to enterprise customers, municipalities and other service providers. ● Renewable Energy . distributed generation solar power in the United States in Massachusetts, California and New Jersey. See Sale of Renewable Energy Operations The following chart summarizes the operating activities of the Company’s principal subsidiaries, the segments in which it reports its revenue and the markets it served as of December 31, 2020: Segment Services Markets Tradenames International Telecom Mobility Bermuda, Guyana, US Virgin Islands One, GTT+, Viya Fixed Bermuda, Cayman Islands, Guyana, US Virgin Islands One, Logic, GTT+, Viya Carrier Services Bermuda, Guyana, US Virgin Islands One, GTT+, Viya Managed Services Bermuda, Cayman Islands, US Virgin Islands, Guyana Fireminds, One, Logic, GTT+, Viya US Telecom Mobility United States (rural markets) Choice, Choice NTUA Wireless, Geoverse Fixed United States Commnet, Choice, Choice NTUA Wireless, Deploycom Carrier Services United States Commnet, Essextel Managed Services United States Choice Renewable Energy Solar India Vibrant Energy The Company actively evaluates potential acquisitions, investment opportunities and other strategic transactions, both domestic and international, that meet its return on investment and other criteria. In addition, the Company considers non-controlling investments in earlier stage businesses that it considers strategically relevant, and which may offer long-term growth potential for the Company, either individually, or as research and development businesses that can support the Company’s operating subsidiaries in new product and service development and offerings. The Company provides management, technical, financial, regulatory, and marketing services to its subsidiaries and typically receives a management fee equal to a percentage of their revenues which is eliminated in consolidation. For information about the Company’s financial segments and geographical information about its operating revenues and assets see Notes 1 and 15 to the Consolidated Financial Statements included in this Report. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements include the accounts of the Company, its majority-owned subsidiaries and certain entities, which are consolidated in accordance with the provisions of the Financial Accounting Standards Board’s (“FASB”) authoritative guidance on the consolidation of variable interest entities since it is determined that the Company is the primary beneficiary of these entities. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates relate to the allowance for credit losses on trade receivables, useful lives of the Company’s fixed and finite-lived intangible assets, allocation of purchase price to assets acquired and liabilities assumed in business combinations, fair value of indefinite-lived intangible assets, goodwill and income taxes. Actual results could differ significantly from those estimates. Cash and Cash Equivalents The Company considers all investments with an original maturity of three months or less at date of purchase to be cash equivalents. The Company places its cash and temporary investments with banks and other institutions that it believes have a high credit quality. At December 31, 2020, the Company had deposits with banks in excess of FDIC insured limits and $32.3 million of its cash is on deposit with noninsured institutions such as corporate money market issuers and cash held in foreign banks. The Company’s cash and cash equivalents are not subject to any restrictions (see Note 9). As of December 31, 2020 and 2019, the Company held $5.7 million and $6.6 million, respectively, of its cash in Guyana dollars. While there are risks associated with the conversion of Guyana dollars to US dollars due to limited liquidity in the Guyana foreign currency markets, to date it has not prevented the Company from converting Guyana dollars into US dollars within a given three month period or from converting at a price that reasonably approximates the reported exchange rate. Short Term Investments The Company's short-term investments consist of corporate bonds, which have remaining maturities of more than three months at the date of purchase, and equity securities classified as available for sale, which are stated at fair value. Unrealized gains and losses are recorded in other income. The estimated fair values of investments are based on quoted market prices as of the end of the reporting period. Restricted Cash The Company generally classifies cash that is legally restricted as to withdrawal or usage as restricted cash. Generally, the cash is restricted due to debt service obligations, acquisitions, or to support the Company’s telecommunications operations. In 2018, the Company disposed of million of restricted cash as a result of the US Solar Transaction described in Note 6. Allowance for Credit Losses The Company adopted ASU 2016-13 on January 1, 2020. The standard requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses is based on all relevant information including historical information, current conditions, and reasonable and supportable forecasts that affect the collectability of the amounts. The Company adopted ASU 2016-13 using the modified retrospective approach, however, there was no impact of adoption on retained earnings. The standard impacted the Company’s calculation of credit losses from trade receivables. Historically, the Company recorded credit losses subsequent to the initial revenue transaction. After adoption of ASU 2016-13, the Company will record an estimate of future credit losses in conjunction with the revenue transactions based on the information available including historical experience, credit worthiness of customers, the Company’s historical experience with customers, current market and economic conditions, and management’s expectations of future conditions. Those estimates will be updated as additional information becomes available. Uncollectible amounts are charged against the allowance account. The Company’s allowance for uncollectible accounts receivable is based on management’s assessment of the collectability of assets pooled together with similar risk characteristics. There is no significant impact to the Company’s operating results for the current period due to the adoption of this standard. Inventory, Materials and Supplies Inventory, materials and supplies primarily include handsets and other equipment held for sale to customers. These balances are recorded at the lower of cost or market cost being determined on the basis of specific identification and market determined using replacement. Fixed Assets The Company’s fixed assets are recorded at cost and depreciated using the straight-line method generally between 3 and 39 years . Expenditures for major renewals and betterments that extend the useful lives of fixed assets are capitalized. Repairs and replacements of minor items of property are charged to maintenance expense as incurred. The cost of fixed assets in service and under construction includes internal and external costs necessary to bring an asset to the condition and location necessary for its intended use. Grants received for the construction of assets are recognized as a reduction of the cost of fixed assets, a reduction of depreciation expense over the useful lives of the assets and as an investing cash flow in the statements of cash flows. The Company capitalizes certain costs of developing and purchasing new information systems in accordance with internal use software guidance. These costs are depreciated over the useful life of the information system. The Company also incurs implementation costs associated with cloud computing arrangements. If these costs do not meet internal use software capitalization guidance, the implementation costs are recorded as prepaid assets and expensed through operating expense over the life of the arrangement. The fair value of a liability for an asset retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made. In periods subsequent to initial measurement, period-to-period changes in the liability for an asset retirement obligation resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flows are recognized. The increase in the carrying value of the associated long-lived asset is depreciated over the corresponding estimated economic life. The consolidated balance sheets include accruals of $ 4.2 million and $4.0 million as of December 31, 2020 and 2019, respectively, for estimated costs associated with asset retirement obligations. In accordance with the authoritative guidance for accounting for the impairment or disposal of long-lived assets, the Company evaluates the carrying value of long-lived assets, including property and equipment, in relation to the operating performance and future undiscounted cash flows of the underlying business whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss exists when estimated undiscounted cash flows attributable to an asset are less than its carrying amount. If an asset is deemed to be impaired, the amount of the impairment loss recognized represents the excess of the asset’s carrying value as compared to its estimated fair value, based on management’s assumptions and projections. Management’s estimate of the future cash flows attributable to its long-lived assets and the fair value of its businesses involve significant uncertainty. Those estimates are based on management’s assumptions of future results, growth trends and industry conditions. If those estimates are not met, the Company could have additional impairment charges in the future, and the amounts may be material. The Company did not record any fixed asset impairments for the year ended December 31, 2020, 2019 or 2018. Goodwill and Indefinite-Lived Intangible Assets Goodwill is recognized in business combinations equal to the amount by which the cost of acquired net assets exceeded the fair value of those net assets on the date of acquisition. The Company allocates goodwill to reporting units at the time of acquisition and bases that allocation on which reporting units will benefit from the acquired assets and liabilities. Reporting units are defined as operating segments or one level below an operating segment, referred to as a component. The Company has determined that its reporting units are components of its multiple operating segments. The Company assesses goodwill for impairment on an annual basis in the fourth quarter or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The assessment begins with a qualitative analysis to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the reporting unit passes this analysis, the impairment assessment is complete and no impairment is recorded. If the reporting unit does not pass the analysis, the Company performs additional quantitative analysis by calculating the fair value of the reporting unit. If the fair value exceeds the carrying value, the test is complete and no impairment is recorded. If the carrying value of the reporting unit, including goodwill, exceeds the fair value of the reporting unit an impairment charge is recorded equal to the excess, but not more than the total amount of goodwill allocated to the reporting unit. A significant majority of the Company’s telecommunications licenses are not amortized and are carried at their historical costs. The Company believes that telecommunications licenses generally have an indefinite life based on the historical ability to renew such licenses, that such renewals may be obtained indefinitely and at little cost, and that the related technology used is not expected to be replaced in the foreseeable future. The Company has elected to perform its annual testing of its telecommunications licenses in the fourth quarter of each fiscal year, or more often if events or circumstances indicate that there may be impairment. The assessment begins with a qualitative analysis to determine whether it is more likely than not that the license fair value exceeds its carrying value. If the reporting unit passes this analysis, the impairment assessment is complete and no impairment is recorded. If the reporting unit does not pass the analysis, the Company performs additional quantitative analysis to calculate the fair value of the license. If the carrying value of the license exceeds the license fair value an impairment charge is recorded. As a part of the impairment test the Company assesses the appropriateness of the application of the indefinite-lived assertion. If the value of these assets were impaired by some factor, such as an adverse change in the subsidiary’s operating market, the Company may be required to record an impairment charge. The Company performed its annual impairment assessment of its goodwill and indefinite-lived intangible assets (telecommunications licenses) for the years ended December 31, 2020 and 2019. See Note 8 for a discussion of the Company’s impairment of a portion of its goodwill within its Renewable Energy segment during the year ended December 31, 2019. Other Intangible Assets Intangible assets resulting from the acquisitions of entities accounted for using the purchase method of accounting are estimated by management based on the fair value of assets acquired. These include acquired customer relationships, tradenames, and franchise rights. Customer relationships are amortized over their estimated lives ranging from 7-13 years, which are based on the pattern in which economic benefit of the customer relationship is estimated to be realized. Debt Non-Controlling Interests The non- controlling interests in the accompanying consolidated balance sheets reflect the original investments and subsequent capital contributions made by the minority stockholders in the Company’s subsidiaries which are less than wholly-owned. Non-controlling interests acquired in a business combination are initially recorded at fair value. Subsequently, all non-controlling interest is adjusted for the minority stockholder’s proportional share of the earnings or losses, net of any distributions. Changes in Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss), by component, were as follows (in thousands): Projected Pension and Postretirement Benefit Translation Obligations Adjustment Other Total Balance at December 31, 2017 $ 3,127 $ 355 $ 264 $ 3,746 Unrecognized actuarial gain (loss), net of tax of $0.6 million (840) — — (840) Foreign currency translation adjustment — (4,390) — (4,390) Adoption of ASU 2016-01 — — (203) (203) Interest rate swap — — 78 78 Balance at December 31, 2018 $ 2,287 $ (4,035) $ 139 $ (1,609) Unrecognized actuarial gain (loss), net of tax of $0.1 million (445) — — (445) Foreign currency translation adjustment — (1,041) — (1,041) Interest rate swap — — (187) (187) Balance at December 31, 2019 1,842 (5,076) (48) (3,282) Unrecognized actuarial gain (loss), net of tax of $0.1 million (2,412) — — (2,412) Foreign currency translation adjustment — 37 — 37 Interest rate swap — — (101) (101) Reclassification of foreign currency losses on assets held for sale — — 6,036 6,036 Balance at December 31, 2020 $ (570) $ (5,039) $ 5,887 $ 278 Amounts reclassified from accumulated other comprehensive income to net income for pension and other postretirement benefits plans were $(100.0) thousand, $(64.0) thousand, and $54.0 thousand for the year ended December 31, 2020, December 31, 2019, and December 31, 2018, respectively. Additionally, Revenue Recognition The Company earns revenue from its telecommunication and renewable energy operations. The Company recognizes revenue through the following steps: - Identification of the contract with a customer - Identification of the performance obligations in the contract - Determination of the transaction price - Allocation of the transaction price to the performance obligations in the contract - Recognize revenue when, or as, the Company satisfies performance obligations Revenue Recognition- Communications Services Communication services consists of Mobility, Fixed, and Carrier Services revenue. Mobility revenue consists of retail revenue generated from providing mobile voice and data services to subscribers over the Company’s wireless networks and the sale of related equipment such as handsets and other accessories to its subscribers. The service revenue generated is recognized over time as the service is rendered and revenues from equipment are recognized when the equipment is delivered to the customer. Management considers transactions where customers purchase subsidized or discounted equipment and mobile voice or data services to be a single contract. For these contracts, the transaction price is allocated to the equipment and mobile service based on their standalone selling prices. The standalone selling price is based on the amount the Company charges for the equipment and service to similar customers. Equipment revenue is recognized when the equipment is delivered to customers and service revenue is recognized as service is rendered. Fixed Communications revenue is primarily generated by internet, voice, and video service revenues provided to retail and enterprise customers over the Company’s wireline networks. Revenue from these contracts is recognized over time as the service is rendered to the customer. Fixed revenue also includes revenue from government grants and is recognized in accordance with the grant terms and conditions. In the Company’s International Telecom segment, Carrier Services revenue is generated from providing international long-distance services, roaming services to other carriers’ customers roaming into the Company’s retail markets, transport services, and access services provided to other telecommunication carriers. In the Company’s US Telecom segment, Carrier Services revenue includes services provided under the FirstNet Transaction, wholesale roaming revenues, the provision of network switching services, tower lease revenue and other services provided to carriers. The Company also has certain wholesale roaming agreements that contain stand ready performance obligations and management allocates transaction value to performance obligations based on the standalone selling price. The standalone selling price is the estimated price the Company would charge for the good or service with similar customers in similar circumstances. Management determined the performance obligations were obligations to make the service continuously available and will recognize revenue evenly over the service period. In July 2019 the Company entered into a Network Build and Maintenance Agreement (the “FirstNet Agreement”) with AT&T Mobility, LLC (“AT&T”) to build a portion of AT&T’s network for the First Responder Network Authority (“FirstNet”) as well as a commercial wireless network in or near the Company’s current operating area in the Southwestern United States (the “FirstNet Transaction”). The FirstNet transaction includes construction and service performance obligations. The Company allocated the transaction price of the FirstNet Agreement to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. The construction revenue is recognized when the assets are delivered and the service revenue is recognized over time as the service is rendered to the customer. The Company’s Mobility, Carrier Services, and Fixed communications contracts occasionally include promotional discounts such as free service periods or discounted products. If a contract contains a substantive termination penalty, the transaction price is allocated to the performance obligations based on a standalone selling price resulting in accelerated revenue recognition and the establishment of a contract asset that will be recognized over the life of the contract. If a contract includes a promotional discount but no substantive termination penalty the discount is recorded in the promotional period and no contract asset is established. The Company’s customers also have the option to purchase additional telecommunication services. Generally, these options are not performance obligations and are excluded from the transaction price because they do not provide the customers with a material right. The Company may charge upfront fees for activation and installation of some of its products and services. These fees are reviewed to determine if they represent a separate performance obligation. If they do not represent a separate performance obligation, the contract price associated with them is recognized over the life of the customer. If the fees represent a performance obligation they are recognized when delivered to the customer based on the standalone selling price. Sales and use and state excise taxes collected from customers that are remitted to the governmental authorities are reported on a net basis and excluded from the revenues and sales. The Company also enters into build and maintenance agreements with its customers. The agreements include construction and service performance obligations. The Company allocates the transaction price to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. Revenue Recognition-Other Revenue Other revenue consists of renewable energy revenue and Managed Services revenue. Renewable energy revenue includes the generation of power through Power Purchase Agreements (“PPAs”) from the Company’s solar plants in India, and prior to its sale in 2018, the United States. The Company recognizes revenue at contractual PPA rates over time as electricity is generated and simultaneously consumed by the customer. Managed services revenue is generated from network, application, infrastructure, and hosting services delivered to customers. The revenue is recognized as the service is delivered to customers. Contract Assets and Liabilities The Company recognizes contract assets and liabilities on its balance sheet. Contract assets represent unbilled amounts typically resulting from retail wireless contracts with both a multiyear service period and a promotional discount. In these contracts the revenue recognized exceeds the amount billed to the customer. The current portion of the contract asset is recorded in prepayments and other current assets and the noncurrent portion is included in other assets on the Company’s balance sheet. Contract liabilities consist of advance payments and billings in excess of revenue recognized. Retail revenue for postpaid customers is generally billed one month in advance and recognized over the period that the corresponding service is rendered to customers. To the extent the service is not provided by the reporting date the amount is recognized as a contract liability. Prepaid service, including mobile voice and data services, sold to customers is recorded as deferred revenue prior to the commencement of services. The current portion of contract liabilities are recorded in advanced payments and deposits and the noncurrent portion is included in other liabilities on the Company’s balance sheets. Contract Acquisition Costs The Company pays sales commissions to its employees and agents for obtaining customer contracts. These costs are incremental because they would not have been incurred if the contract was not obtained. The Company recognizes an asset for these costs and subsequently amortizes the asset on a systematic basis consistent with the pattern of the transfer of the services to the customer. The amortization period, which is between 2 and 6 years , considers both the original contract period as well as anticipated contract renewals as appropriate. The amortization period also includes renewal commissions when those commissions are not commensurate with new commissions. The Company estimates contract renewals based on its actual renewals in recent periods. When the expected amortization period is one year or less the Company utilizes the practical expedient and expenses the costs as incurred. Leases The Company determines if an agreement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities in the Company’s consolidated balance sheets. Finance leases are included in property and equipment in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The present value is calculated using the Company’s incremental borrowing rate based on the information available at the commencement date, as the Company’s leases do not contain an implicit rate. The Company utilizes assumptions based on its existing borrowing facilities and other market specific data to determine its incremental borrowing rate. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include renewal options to extend the lease. The Company includes renewal options that are reasonably certain to be exercised in the initial lease term. When determining whether a renewal option is reasonably certain to be exercised, the Company considers several factors, including the present and anticipated future needs of its customers being serviced by the asset. Lease expense is recognized on a straight-line basis over the lease term. The Company does not separate non-lease components from lease components. Operating Expenses Termination and access fee expenses. Construction costs. Engineering and operations expenses. Sales and marketing expenses. Sales and marketing expenses include salaries and benefits the Company pays to sales personnel, customer service expenses, sales commissions and the costs associated with the development and implementation of the Company’s promotion and marketing campaigns. General and administrative expenses. Transaction-related charges. Restructuring charges. Restructuring charges are costs incurred as a result of reorganizing the Company’s operations as a result of acquisition or disposition activities. Depreciation and amortization expenses. Impairment of goodwill or intangible assets. (Gain) loss on disposition of long-lived assets. The Company sells or disposes assets from time to time. A gain or loss is recorded by comparing the carrying amount of the assets to the proceeds received. The Company also records losses on assets held for sale if the expected sale price exceeds the carrying value of the assets. Loss on damaged assets and other Hurricane-related charges, net of insurance recovery. During September 2017, the Company’s operations and customers in the US Virgin Islands were severely impacted by Hurricanes Irma and Maria (the “Hurricanes”). Loss on damaged assets and other hurricane related charges, net of insurance recovery represents the write off of damaged assets, net of insurance recoveries and also includes additional operating expenses that were specifically incurred to address the impact of the Hurricanes. Accounting for Grants The Company receives funding from the US Government and its agencies under stimulus and USF and other programs. These funding programs are generally designed to fund telecommunications operations, and infrastructure expansion into rural or underserved areas. The funding programs are evaluated to determine if they represent funding related to revenue, capital expenditures, or operating activities. Funding for revenue and operating activities are recorded as revenue or contra expense in the Company’s consolidated income statement as the services are provided. Funding for capital expenditures is recorded as a reduction to property, plant and equipment on the Company’s consolidated balance sheets and a future reduction in depreciation expense in the consolidated income statements. Government funding related to revenue and operations are recorded as operating cash inflows and grants for capital expenditures are recorded as investing cash inflows. The Company monitors government funding for grant requirements to ensure that conditions related to grants have been met and there is reasonable assurance that the Company will be able to retain the grant proceeds and to ensure that any contingencies that may arise from not meeting the conditions are appropriately recognized. See Note 10, Government Grants Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that the Company believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax- planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely- than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related authority. It is possible that the ultimate resolution of these uncertain matters may be greater or less than the amount that the Company estimated. If payment of these amounts proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period in which it is determined that the liabilities are no longer necessary. If the estimate of tax liabilities proves to be more than the ultimate assessment, a further charge to expense would result. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. The Company does not provide for United States income taxes on earnings of foreign subsidiaries as such earnings are considered to be indefinitely reinvested. The Tax Cuts and Jobs Act of 2017 (the “Tax Act” also commonly referred to as US tax reform), Credit Concentrations and Significant Customers Foreign Currency Gains and Losses The Company translate the assets and liabilities of its foreign subsidiaries from their respective functional currencies, primarily the Indian Rupee and the Guyana Dollar, to US dollars at the appropriate spot rates as of the balance sheet date. Changes in the carrying values of these assets and liabilities attributable to fluctuations in spot rates are recognized in foreign currency translation adjustment, a component of accumulated other comprehensive income. Income statement accounts are translated using the monthly average exchange rates during the year. Monetary assets and liabilities denominated in a currency that is different from a reporting entity’s functional currency must first be remeasured from the applicable currency to the legal entity’s functional currency. The effect of this remeasurement process is reported in other income on the income statement. Employee Benefit Plans The Company sponsors pension and other postretirement benefit plans for employees of certain subsidiaries. Net periodic pension expense is recognized in the Company’s income statement. The service cost component of net periodic pension expense is presented with other employee compensation within income from operations. Other components of net periodic pension expense, such as interest cost, expected return on plan assets, and amortization of ac |
REVENUE RECOGNITION AND RECEIVA
REVENUE RECOGNITION AND RECEIVABLES | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE RECOGNITION AND RECEIVABLES | |
REVENUE RECOGNITION AND RECEIVABLES | 3. REVENUE RECOGNITION AND RECEIVABLES Impact of adoption The Company adopted ASC 606 on January 1, 2018 using the modified retrospective method. The Company elected the practical expedient to apply the new guidance only to contracts that were not substantially complete at the adoption date. The cumulative effect of adopting ASC 606 resulted in a contract asset of $1.6 million, of which $1.2 million was recorded in prepayments and other current assets and $0.4 million was recorded in other assets, a contract liability of $0.2 million recorded in advance payments and deposits, contract acquisition costs of $1.5 million of which $0.9 million was recorded in prepayments and other current assets and $0.6 million was recorded in other assets, and a deferred tax liability of $0.3 million with the offset of $1.5 million recorded to retained earnings and $1.1 million recorded to minority interest. Contract Assets and Liabilities The Company recognizes contract assets and liabilities on its balance sheet. Contract assets represent unbilled amounts typically resulting from retail wireless contracts with both a multiyear service period and a promotional discount. In these contracts the revenue recognized exceeds the amount billed to the customer. The current portion of the contract asset is recorded in prepayments and other current assets and the noncurrent portion is included in other assets on the Company’s balance sheets. Contract liabilities consist of advance payments and billings in excess of revenue recognized. Retail revenue for postpaid customers is generally billed one month in advance and recognized over the period that the corresponding service is rendered to customers. To the extent the service is not provided by the reporting date the amount is recognized as a contract liability. Prepaid service, including mobile voice and data services, sold to customers is recorded as deferred revenue prior to the commencement of services. Contract liabilities are recorded in advanced payments and deposits on the Company’s balance sheets. In July 2019 and August 2020, the Company entered into the FirstNet Agreement and a First Amendment to the FirstNet Agreement , respectively, in connection with the FirstNet Transaction. The FirstNet Transaction includes construction and service performance obligations. The Company allocated the transaction price of the FirstNet Agreement to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. The Company has certain wholesale roaming agreements that contain stand ready performance obligations and management allocates transaction value to performance obligations based on the standalone selling price. The standalone selling price is the estimated price the Company would charge for the good or service with similar customers in similar circumstances. Management determined the performance obligations were obligations to make the service continuously available and will recognize revenue evenly over the service period. Contract assets and liabilities consisted of the following (amounts in thousands): December 31, 2020 December 31, 2019 $ Change % Change Contract asset – current $ 2,478 $ 2,413 $ 65 3 % Contract asset – noncurrent 910 905 5 1 % Contract liability – current (18,544) (15,044) (3,500) (23) % Contract liability – noncurrent (2,193) (5,450) 3,257 60 % Net contract liability $ (17,349) $ (17,176) $ (173) (1) % The contract asset-current is included in prepayments and other current assets, the contract asset-noncurrent is included in other assets, the contract liability-current is included in advance payments and deposits, and the contract liability-noncurrent is included in other liabilities on the Company’s balance sheet. The increase in the Company’s net contract liability was due to the timing of customer prepayments and contract billings, and the FirstNet Transaction. During the year ended December 31, 2020, the Company recognized revenue of $16.9 million related to its December 31, 2019 contract liability and amortized $2.3 million of the December 31, 2019 contract asset into revenue. The Company did no t recognize any revenue in the years ended December 31, 2020 and 2019 related to performance obligations that were satisfied or partially satisfied in previous periods. Contract Acquisition Costs The December 31, 2020 balance sheet includes current contract acquisition costs of $1.9 million in prepayments and other current assets and long term contract acquisition costs of $1.2 million in other assets. The December 31, 2019 balance sheet includes current contract acquisition costs of $1.7 million in prepayments and other current assets and long term contract acquisition costs of $1.1 million in other assets. During the years ended December 31, 2020 and 2019 the Company amortized $2.1 million and $1.8 million, respectively, of contract acquisition cost. Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to unsatisfied performance obligations of certain multiyear retail wireless contracts, which include a promotional discount, and the Company’s construction and service contracts. The transaction price allocated to unsatisfied performance obligations was $299 million and $241 million at December 31, 2020 and December 31, 2019, respectively. The Company expects to satisfy the majority of the remaining performance obligations and recognize the transaction price within 24 months and the remainder thereafter . The Company has certain retail, wholesale, and renewable energy contracts where transaction price is allocated to remaining performance obligations. However, the Company omits these contracts from the disclosure by applying the right to invoice , one year or less, and wholly unsatisfied performance obligation practical expedients. Disaggregation The Company's revenue is presented on a disaggregated basis in Note 15 based on an evaluation of disclosures outside the financial statements, information regularly reviewed by the chief operating decision maker for evaluating the financial performance of operating segments and other information that is used for performance evaluation and resource allocations. This includes revenue from Communication Services and Other revenues. Communication Services is further disaggregated into Mobility, Fixed, Carrier Services, and Other revenue. Other revenue is further disaggregated into Renewable Energy, Managed Services, and Construction revenue. Each of the revenue streams is presented for the Company’s International Telecom and US Telecom segments. This disaggregation of revenue depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Receivables At December 31, 2020, the Company had gross accounts receivable of $67.1 million of which $57.5 million was recorded in accounts receivable and $9.6 million was long-term recorded in other assets on the Company’s balance sheet. The Company recorded an allowance for credit loss of $12.1 million. At January 1, 2020, the Company had gross accounts receivable of $48.6 million and an allowance for credit losses of $12.7 million. The Company monitors receivables through the use of historical operating data adjusted for expectation of future performance as appropriate. Activity in the allowance for credit losses is below: Year ended December 31, 2020 Balance at January 1, 2020 $ 12,724 Current period provision for expected losses 5,010 Write-offs charged against the allowance (6,351) Recoveries collected 738 Balance at December 31, 2020 $ 12,121 2020 2019 Retail $ 22,178 $ 13,659 Wholesale - current 35,322 34,969 Wholesale - long- term 9,614 — Accounts receivable 67,114 48,628 Less: allowance for doubtful accounts (12,121) (12,724) Total accounts receivable, net $ 54,993 $ 35,904 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
LEASES | 4. LEASES Impact of Adoption The Company adopted ASC 842 on January 1, 2019, utilizing the optional transition method with a cumulative adjustment on the date of adoption. Under this approach, the guidance was applied to leases that had commenced as of January 1, 2019 with a cumulative effect adjustment as of that date and prior periods were not adjusted. Upon adoption, the Company recognized an operating lease ROU asset of $70.8 million, a short-term lease liability of $8.2 million, and a long-term lease liability of $61.2 million. The adoption had no impact on retained earnings or other components of equity. The Company elected the package of practical expedients . Under the package of practical expedients, for existing leases, the Company does not reassess: i) whether the arrangement contains a lease; ii) lease classification and; iii) initial direct costs. The Company has operating and financing leases for towers, land, corporate offices, retail facilities, and data transport capacity. The lease terms are generally between 3 and 10 years , some of which include additional renewal options. Supplemental lease information The components of lease expense were as follows (in thousands): December 31, 2020 December 31, 2019 Operating lease cost: Operating lease cost $ 16,409 $ 15,194 Short-term lease cost 2,712 3,426 Variable lease cost 4,059 2,803 Total operating lease cost $ 23,180 $ 21,423 Finance lease cost: Amortization of right-of-use asset $ 2,181 $ 2,318 Variable costs 852 964 Total finance lease cost $ 3,033 $ 3,282 During the year ended December 31, 2020 and December 31, 2019, the Company paid $16.1 million and $15.1 million, respectively, related to operating lease liabilities. Also during the year ended December 31, 2020 and December 31, 2019, the Company recorded million, respectively, of lease liabilities arising from ROU assets. At December 31, 2020, finance leases with a cost of $25.4 million and accumulated amortization of $9.5 million were included in property, plant and equipment. During the year ended December 31, 2020, the Company paid $0.4 million for finance lease liabilities and recorded $1.6 million of additional finance lease liabilities. At December 31, 2020, finance leases had a lease liability of $1.2 million, of which $0.3 million was current. At December 31, 2019, finance leases with a cost of $25.9 million and accumulated amortization of $9.4 million were included in property, plant and equipment. The weighted average remaining lease terms and discount rates as of December 31, 2020 and December 31, 2019 are noted in the table below: December 31, 2020 December 31, 2019 Weighted-average remaining lease term Operating leases 5.9 years 6.5 years Financing leases 10.9 years 11.7 years Weighted-average discount rate Operating leases 5.0% 5.0% Financing leases 3.3% n/a Maturities of lease liabilities as of December 31, 2020 were as follows (in thousands): Operating Leases 2021 $ 15,211 2022 14,535 2023 12,132 2024 10,844 2025 7,816 Thereafter 13,094 Total lease payments 73,632 Less imputed interest (10,179) Total $ 63,453 Maturities of lease liabilities as of December 31, 2019 were as follows (in thousands): Operating Leases 2020 $ 14,526 2021 13,714 2022 12,787 2023 10,713 2024 9,671 Thereafter 18,355 Total lease payments 79,766 Less imputed interest (12,195) Total $ 67,571 As of December 31, 2020, the Company did not have any material operating or finance leases that have not yet commenced. |
IMPACT OF HURRICANES IRMA AND M
IMPACT OF HURRICANES IRMA AND MARIA | 12 Months Ended |
Dec. 31, 2020 | |
IMPACT OF HURRICANES IRMA AND MARIA | |
IMPACT OF HURRICANES IRMA AND MARIA | 5. IMPACT OF HURRICANES IRMA AND MARIA During September 2017, the US Virgin Islands economy, the Company’s customer base and its operations were severely impacted by the Hurricanes. The Company’s wireless and wireline networks and commercial operations were all severely damaged by these storms and as a result of the significant damage to the wireline network and the lack of consistent commercial power in the territory, the Company was unable to provide most of its wireline services, which comprise the majority of its revenue in this business, from mid-September 2017 and through most of 2018. During the year ended December 31, 2018, the Company received $15.5 million in one-time additional funding from the Federal Communications Commission’s (“FCC”) Universal Service Fund (“USF”) to further subsidize its operations in the US Virgin Islands. This amount was recorded as revenue during the year ended December 31, 2018. During the years ended December 31, 2019 and 2018, the Company spent $0.1 million and $80.2 million, respectively, for network restoration and resiliency enhancements that allowed the reconnection of a significant majority of affected US Virgin Islands households and businesses. |
DISPOSITIONS AND PLATFORM INVES
DISPOSITIONS AND PLATFORM INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
DISPOSITIONS AND PLATFORM INVESTMENTS | |
DISPOSITIONS AND PLATFORM INVESTMENTS | 6. DISPOSITIONS AND PLATFORM INVESTMENTS Renewable Energy Disposition of US Solar Business On November 6, 2018, the Company completed the sale of its US solar business that owned and managed distributed generation solar power projects operated under the Ahana name in Massachusetts, California and New Jersey (the “US Solar Operations”) to CleanCapital Holdco 4, LLC. The transaction had a total value of approximately $122.6 million, which includes a cash purchase price of $65.3 million and the assumption of approximately $57.3 million in debt (the “US Solar Transaction”). Approximately million of the purchase price was held in escrow for a period of twelve months after the closing to secure certain indemnification obligations. The Company received the escrow in November 2019. The table below identifies the assets and liabilities transferred (amounts in thousands): Consideration Received $ 65,286 Assets and liabilities disposed Cash 3,049 Accounts receivable 1,248 Prepayments and other current assets 801 Property, plant and equipment 94,678 Restricted cash 8,407 Other assets 38 Current portion of long-term debt (6,992) Accounts payable and accrued liabilities (938) Accrued taxes 586 Long-term debt, excluding current portion (48,038) Net assets disposed 52,839 Consideration less net assets disposed 12,447 Transaction costs (2,133) Gain $ 10,314 The Company allocated $1.1 million of the gain to non-controlling interests within the consolidated income statement. During the year ended December 31, 2018, the Company incurred million of transaction related charges pertaining to legal, accounting and consulting services associated with the transaction. The US Solar Operations did not qualify as a discontinued operation because the disposition did not represent a strategic shift that had a major effect on the Company’s operations and financial results. As a result, the historical results are included in continuing operations. Disposition of International Solar Business On November 19, 2020, the Company entered into a Sale and Purchase Agreement (the “Vibrant Sale Agreement”) pursuant to which the Company, through its subsidiaries, has agreed to sell 67% of the outstanding equity interests of Vibrant Energy Holdings Pte. Ltd. (“Vibrant”) for consideration of approximately $21 million at closing and the potential for up to $6.3 million of additional “earn out” consideration upon the satisfaction of certain conditions (the “Vibrant Transaction”). The Company will retain a 33% ownership interest in Vibrant. The Vibrant Sale Agreement contains representations, warranties and covenants of the parties that are customary for transactions of this type. The Company reported Vibrant’s million of liabilities as held for sale in its December 31, 2020 balance sheet. The assets held for sale include million of other assets. The liabilities held for sale includes million of current liabilities. The Company reported a loss of million on the held for sale transaction during the year ended December 31, 2020. In January 2021, the Company completed the sale of 67% of the outstanding equity in its business that owns and operates distributed generation solar power projects operated under the Vibrant name in India. The post-sale results of the Company’s ownership interest in Vibrant will be recorded through the equity method of accounting within the Corporate and Other operating segment. As such, the Company’s consolidated financial statements will not include revenue and operating expenses from Vibrant, but instead, “other income (expense)” within the Corporate and Other operating segment will include its share of Vibrant’s profits or losses. The Company will continue to present the historical results of its Renewable Energy segment for comparative purposes. The Vibrant Transaction does not qualify as discontinued operations because the dispositions was not a strategic shift which will have a major effect on the Company’s operations, the historical results and financial position of the operations are presented within continuing operations. US Telecom Platform Investments During the second quarter of 2018, the Company invested in a new platform, based in the United States, to develop private network technology to service enterprise customers, municipalities, and other service providers. Also during the second quarter of 2018, the Company provided funding for another new platform, based in the United States, seeking to “build to suit” large scale fiber networks to serve the telecommunications and content provider industries in need of lower latency long haul fiber transit services. On December 31, 2020, the Company announced that it entered into an Agreement and Plan of Merger (the “Alaska Merger Agreement”) with Freedom 3 Capital, LLC (“Freedom3”) to acquire all of the shares of Alaska Communications Systems Group, Inc. (“Alaska Communications”), a publicly listed company (Nasdaq:ALSK) for approximately $340 million, including the assumption of debt (the “Alaska Transaction”). Following the closing of the Alaska Transaction, the Company will, through its subsidiaries, own and control approximately . In February 2021, the required waiting period under the Hart Scott Rodino Antitrust Improvements Act of 1976 expired, however the Alaska Transaction remains subject to customary closing terms and conditions including (i) the approval of Alaska Communications’ stockholders, (ii) the absence of certain legal impediments, and (iii) obtaining the necessary consents from the Federal Communications Commissions and the Regulatory Commission of Alaska. |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
FIXED ASSETS: | |
FIXED ASSETS: | 7. FIXED ASSETS: As of December 31, 2020 and 2019, property, plant and equipment consisted of the following (in thousands): Useful Life (in Years) 2020 2019 Telecommunications equipment and towers 5 -15 $ 1,012,457 $ 979,028 Solar assets 20-23 - 40,043 Office and computer equipment 3 -10 87,427 82,630 Buildings 15-39 52,048 48,565 Transportation vehicles 3 -10 13,730 13,424 Leasehold improvements Shorter 16,709 2,316 Land — 8,180 15,503 Furniture and fixtures 5 -10 11,320 8,866 Total property, plant and equipment 1,201,871 1,190,375 Construction in progress 50,909 47,180 Total property, plant and equipment 1,252,780 1,237,555 Less: Accumulated depreciation (716,318) (631,974) Net fixed assets $ 536,462 $ 605,581 Depreciation and amortization of fixed assets, using the straight-line method over the assets’ estimated useful life, for the years ended December 31, 2020, 2019 and 2018 was $86.5 million, $86.9 million and $83.0 million, respectively. Included within telecommunication equipment and towers are certain right to use assets under capital lease with a cost of $25.4 million and $25.9 million and net book value of and $15.9 million and $16.5 million, as of December 31, 2020 and 2019, respectively. For the years ended December 31, 2020 and 2019, the Company received capital expenditure grants of $16.3 million and $3.1 million, respectively. The Company had $5.6 million and $3.6 million of capitalized implementation costs at December 31, 2020 and 2019, respectively. The Company amortized |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 8. GOODWILL AND INTANGIBLE ASSETS Goodwill The Company tests goodwill for impairment at each of its reporting units on an annual basis, which has been determined to be as of October 1st. The Company’s reporting units are one level below its operating segments. The Company also tests goodwill between annual tests if an event occurs or circumstances change that indicate that the fair value of a reporting unit may be below its carrying value. The Company’s qualitative goodwill impairment test includes, but is not limited to, assessing macroeconomic conditions, industry and market considerations, technological changes and trends, and overall financial performance of the reporting unit. The Company’s quantitative test for goodwill impairment involves a comparison of the estimated fair value of a reporting unit to its carrying amount, including goodwill. The Company determines the fair value of a reporting unit using either a market or income approach. The market approach uses prices generated by market transactions involving comparable businesses. The income approach is based on a discounted cash flow (“DCF”) model. The DCF model requires the exercise of significant judgment, including judgments and assumptions about appropriate discount rates and revenue growth. Discount rates are based on a weighted-average cost of capital (“WACC”), which represents the average rate a business must pay its providers of debt and equity. The revenue growth and cash flows employed in the DCF model were derived from internal earnings and forecasts and external market forecasts. For its annual impairment analysis, as of October 1, 2020, the Company performed a qualitative analysis for all reporting units other than its Viya reporting unit. The qualitative analysis was completed after the 2019 quantitative analysis using a DCF model determined that the fair value of each reporting unit significantly exceeded its carrying value, including goodwill. The qualitative analysis concluded that no impairment was necessary in 2020. For the Company’s Viya reporting unit, its 2019 impairment analysis determined that its fair value exceeded its carrying value, including goodwill, by 12 %. As a result the Company performed a quantitative analysis using a DCF model for this reporting unit during 2020. Based on the results of this test for Viya, the fair value of this reporting unit exceeded its carrying value by approximately 9%, and accordingly a relatively small change in the underlying assumptions, including the revenue growth and the discount rate, would likely cause a change in the results of the impairment assessment and, as such, could result in an impairment of the goodwill related to Viya, for which the carrying amount is $20.6 million. During 2019, the Company recorded a goodwill impairment of $3.3 million in the Renewable Energy segment. The impairment assessment was based on a market approach. The Company concluded that the fair value of the reporting unit exceeded its carrying amount by an amount in excess of the reporting unit’s goodwill. As a result, a goodwill impairment was recorded to reduce the value of the goodwill to zero . The assets in this reporting unit were reported as held for sale at December 31, 2020. Refer to Note 6. The Company’s impairment testing for 2018 concluded that no impairments were necessary for any reporting units. The table below discloses goodwill recorded in each of the Company’s segments and accumulated impairment changes (in thousands): International US Renewable Telecom Telecom Energy Consolidated Balance at December 31, 2018 $ 24,326 $ 35,268 $ 3,279 $ 63,970 Impairment — — (3,279) (3,279) Balance at December 31, 2019 24,326 35,268 — 60,691 Impairment — — — — Balance at December 31, 2020 $ 24,326 $ 35,268 $ — $ 60,691 International US Renewable Telecom Telecom Energy Consolidated Balance at December 31, 2019 Gross $ 24,326 $ 35,268 $ 3,279 $ 63,970 Accumulated Impairment — — (3,279) (3,279) Net 24,326 35,268 — 60,691 Balance at December 31, 2020 Gross 24,326 35,268 — 60,691 Accumulated Impairment — — — — Net $ 24,326 $ 35,268 $ — $ 60,691 Telecommunications Licenses The Company tests those telecommunications licenses that are indefinite lived for impairment on an annual basis, which has been determined to be as of October 1st. The Company also tests telecommunication licenses that are indefinite lived between annual tests if an event occurs or circumstances change that indicate that the fair value of a reporting unit may be below its carrying value. The Company’s qualitative impairment test includes, but is not limited to, assessing macroeconomic conditions, industry and market considerations, technological changes and trends, overall financial performance, and legal and regulatory changes. The Company’s quantitative test for impairment involves a comparison of the estimated fair value of an asset to its carrying amount. The Company determines the fair value using either a market or income approach. The market approach uses prices generated by market transactions involving comparable assets. The income approach uses a DCF model. The DCF requires the exercise of significant judgement including Level 3 valuation inputs. The Company performed qualitative assessments for its annual impairment assessment of its indefinite lived telecommunications licenses for 2020 and determined that there were no indications of potential impairments. The Company’s impairment testing for 2019 and 2018 also determined that no impairments were required for any telecommunication licenses. The changes in the carrying amount of the Company’s telecommunications licenses, by operating segment, were as follows (in thousands): International US Telecom Telecom Consolidated Balance at December 31, 2018 $ 23,347 $ 70,339 $ 93,686 Acquired licenses — — — Dispositions — — — Balance at December 31, 2019 $ 23,347 $ 70,339 $ 93,686 Acquired licenses 200 20,197 20,397 Dispositions — — — Transfers 11,251 (11,251) — Balance at December 31, 2020 $ 34,798 $ 79,285 $ 114,083 The licenses acquired during 2020 and 2019 are expected to be available for use into perpetuity. Customer Relationships The customer relationships, all of which are included in the International Telecom segment, are being amortized on an accelerated basis, over the expected period during which their economic benefits are to be realized. The Company recorded $1.5 million, $1.8 million, and $2.4 million of amortization related to customer relationships during year ended December 31, 2020, 2019, and 2018, respectively. Future amortization of customer relationships, in its International Telecom segment, is as follows (in thousands): Future Amortization 2021 $ 1,300 2022 1,143 2023 827 2024 576 2025 576 Thereafter 1,491 Total $ 5,913 Other Intangible Assets The Company has other intangible assets of $3.0 million consisting of franchise rights and $1.1 million of tradenames in its International Telecom segment. These assets are recorded in other assets on the Company’s balance sheet as of December 31, 2020 and 2019, respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2020 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 9. LONG-TERM DEBT On April 10, 2019, the Company entered into the 2019 Credit Facility, with CoBank, ACB and a syndicate of other lenders. The 2019 Credit Facility provides for a $200 million revolving credit facility that includes (i) up to $75 million for standby or trade letters of credit and (ii) up to $10 million under a swingline sub-facility. Approximately $16.0 million of performance letters of credit have been issued and remain outstanding and undrawn as of December 31, 2020. The 2019 Credit Facility matures on April 10, 2024. Amounts borrowed under the 2019 Credit Facility bear interest at a rate equal to, at the Company’s option, either (i) the London Interbank Offered Rate (“LIBOR”) plus an applicable margin ranging between 1.25% to 2.25% or (ii) a base rate plus an applicable margin ranging from 0.25% to 1.25%. Swingline loans bear interest at the base rate plus the applicable margin for base rate loans. The base rate is equal to the higher of (i) 1.00% plus the higher of (x) LIBOR for an interest period of one month and (y) LIBOR for an interest period of one week; (ii) the Federal Funds Effective Rate (as defined in the 2019 Credit Facility) plus 0.50% per annum; and (iii) the Prime Rate (as defined in the 2019 Credit Facility). The applicable margin is determined based on the Total Net Leverage Ratio (as defined in the 2019 Credit Facility). Under the terms of the 2019 Credit Facility, the Company must also pay a fee ranging from 0.150% to 0.375% of the average daily unused portion of the 2019 Credit Facility over each calendar quarter. The 2019 Credit Facility contains customary representations, warranties and covenants, including a financial covenant that imposes a maximum ratio of indebtedness to EBITDA as well as covenants limiting additional indebtedness, liens, guaranties, mergers and consolidations, substantial asset sales, investments and loans, sale and leasebacks, transactions with affiliates and fundamental changes. The Company’s investments in “unrestricted” subsidiaries and certain dividend payments to the Company’s stockholders are not limited unless the Total Net Leverage Ratio is equal to or greater than 1.75 to 1.0. The Total Net Leverage Ratio is measured each fiscal quarter and is required to be less than or equal to to 1.0. In the event of a Qualifying Acquisition (as defined in the 2019 Credit Facility), the Total Net Leverage Ratio increases to The 2019 Credit Facility also provides for the incurrence by the Company of incremental term loan facilities, when combined with increases to revolving loan commitments, in an aggregate amount not to exceed $200 million (the “Accordion”). Amounts borrowed under the Accordion are also subject to proforma compliance with a net leverage ratio financial covenant. As of December 31, 2020, the Company was in compliance with all of the financial covenants, had no outstanding borrowings and, net of the $16.0 million of outstanding performance letters of credit, had $184.0 million of availability under the 2019 Credit Facility. FirstNet Receivables Credit Facility On March 26, 2020, Commnet Finance, a wholly owned subsidiary of Commnet Wireless, entered into receivables credit facility with the Company, Commnet Wireless, and CoBank, ACB (the “Receivables Credit Facility”). The Receivables Credit Facility provides for a senior secured delayed draw term loan in an aggregate principal amount of up to $75 million and the proceeds may be used to acquire certain receivables from Commnet Wireless. The receivables to be financed and sold under the Receivables Credit Facility, which provide the loan security, relate to the obligations of AT&T under the FirstNet Agreement. The delayed draw period will expire on December 31, 2021. The maturity date for each loan will be set by CoBank and will match the weighted average maturity of the certain receivables financed. Interest on the loans accrues at a rate based on (i) LIBOR plus 2.50%, (ii) a base rate plus 1.50% or (iii) a fixed annual interest rate to be quoted by CoBank The Receivables Credit Facility contains customary events of termination, representations and warranties, affirmative and negative covenants and events of default customary for facilities of this type. As of December 31, 2020, the Company had no outstanding borrowings under the Receivables Credit Facility. Viya Debt The Company, and certain of its subsidiaries, have entered into a $60.0 million loan agreement (the “Viya Debt”) with Rural Telephone Finance Cooperative (“RTFC”). The Viya Debt agreement contains customary representations, warranties and affirmative and negative covenants (including limitations on additional debt, guaranties, sale of assets and liens) and a financial covenant that limits the maximum ratio of indebtedness to annual operating cash flow to 3.5 to 1.0 (the “Net Leverage Ratio”). This covenant is tested on an annual basis at the end of each fiscal year. Interest is paid quarterly at a fixed rate of 4.0% and principal repayment is not required until maturity on July 1, 2026. Prepayment of the Viya Debt may be subject to a fee under certain circumstances. The debt is secured by certain assets of the Company’s Viya subsidiaries and is guaranteed by the Company. With RTFC’s consent, the Company funded the restoration of Viya’s network, following the Hurricanes in 2017, through an intercompany loan arrangement with a The Company paid a fee of $0.9 million in 2016 to lock the interest rate at 4% per annum over the term of the Viya Debt. The fee was recorded as a reduction to the Viya Debt carrying amount and is being amortized over the life of the loan. As of December 31, 2020, $60.0 million of the Viya Debt remained outstanding and $0.5 million of the rate lock fee was unamortized. One Communications Debt The Company has an outstanding loan from HSBC Bank Bermuda Limited (the “One Communications Debt”) which is scheduled to mature on May 22, 2022 and bears interest at the one-month LIBOR plus a margin ranging between 2.5% to 2.75%, paid quarterly. The One Communications Debt contains customary representations, warranties and affirmative and negative covenants (including limitations on additional debt, guaranties, sale of assets and liens) and financial covenants, tested annually as of and for the twelve months ended December 31st, that limit the ratio of tangible net worth to long term debt and total net debt to EBITDA and require a minimum debt service coverage ratio (as defined in the One Communications Debt agreement). The Company was in compliance with its covenants as of December 31, 2020. As a condition of the One Communications Debt, the Company was required to enter into a hedging arrangement with a notional amount equal to at least 30% of the outstanding loan balance and a term corresponding to the term of the One Communications Debt. As such, the Company entered into an amortizing interest rate swap that has been designated as a cash flow hedge, which had an original notional amount of $11.0 million, has an interest rate of 1.874%, and expires in March 2022. As of December 31, 2020, the swap had an unamortized notional amount of $7.3 million. The Company capitalized $0.3 million of fees associated with the One Communications Debt which are being amortized over the life of the debt and are recorded as a reduction to the debt carrying amount. As of December 31, 2020, $13.4 million of the One Communications Debt was outstanding and $0.1 million of the capitalized fees remained unamortized. |
GOVERNMENT GRANTS
GOVERNMENT GRANTS | 12 Months Ended |
Dec. 31, 2020 | |
GOVERNMENT GRANTS | |
GOVERNMENT GRANTS | 10. GOVERNMENT GRANTS Universal Service Fund Program (“E-Rate Program”); and Rural Health Care Support Program. The Company participates in the High Cost Program, Lifeline Program, E-Rate Program, and Rural Health Care Support Program as further described below. All of these funding programs are subject to certain operational and reporting compliance requirements. The Company believes it is in compliance with all applicable requirements. During the years ended December 31, 2020, 2019 and 2018, the Company recorded $16.4 million, $16.4 million, and $16.5 million, respectively, of revenue from High Cost Support in its International Telecom segment for its US Virgin Islands operations under the “Viya” name. In addition, the Company recorded revenue of $15.5 million during the year ended December 31, 2018, from additional funding authorized by the FCC following the Hurricanes. In 2018, the FCC initiated a proceeding to reform the High Cost Program in the US Virgin Islands and Puerto Rico in which it proposed to allocate USF funding of up to $18.7 million per year (inclusive of the $16.4 million per year currently allocated to Viya) for 10 years to supplant the $16.4 million that Viya currently receives per year. While Viya applied for Connect USVI Fund support allocated for the US Virgin Islands, on November 16, 2020, the FCC announced that Viya was not the recipient of the provisional award and that the FCC had provisionally accepted a bid of approximately $8.6 million per year for a term of 10 years . Viya has challenged this decision and its challenge remains pending before the FCC. If Viya’s challenge is not granted, pursuant to the terms of the program, Viya’s USF support will be reduced, to two -thirds of the legacy total amount, or $10.9 million, during the first year following the finalization of the award and to one -third of the legacy total amount, or $5.5 million, during the second year. Thereafter, Viya will not receive high-cost USF support. Also, during each year ended December 31, 2020, 2019 and 2018, the Company recorded $1.2 million of High Cost Support revenue in its US Telecom segment. The Company is subject to certain operational, reporting and construction requirements as a result of this funding and the Company believes that it is in compliance with all of these requirements. In August 2018, the Company was awarded $79.9 million over 10 years under the Connect America Fund Phase II Auction. The Company is required to provide fixed broadband and voice services to certain eligible areas in the United States. The Company is subject to operational and reporting requirements under the program and the Company expects to incur additional capital expenditures to comply with these requirements. The Company determined the award is a revenue grant, and as a result the Company will record the funding as revenue upon receipt. The Company recorded $7.6 million and $5.3 million of revenue in the years ended December 31, 2020 and December 31, 2019, respectively, from the Connect America Fund Phase II program. The Company also receives construction grants to build network connectivity for eligible communities. The funding is used to reimburse construction costs and is distributed upon completion of a project. As of December 31, 2019, the Company was awarded approximately $15.8 million of grants. The Company was awarded million of construction grants in 2020. As of December 31, 2020, the Company has completed its construction obligations on Once these projects are constructed, the Company is obligated to provide service to the participants. The Company receives funds upon construction completion. During 2020, the Company received million, which was used to offset operating activities. During 2019, the Company received The Company also receives funding to provide discounted telecommunication services to eligible customers under the E-Rate, Lifeline, and Rural Health Care Support Programs. During the years ended December 31, 2020, 2019, and 2018 the Company recorded revenue of $10.0 million, $6.1 million, and $8.2 million, respectively, in the aggregate from these programs. The Company is subject to certain operational and reporting requirements under the above mentioned programs and it believes that it is in compliance with all of these requirements. CARES Act million of funding under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The funding was utilized to construct network infrastructure in the Company’s US Telecom segment. The construction was complete in the fourth quarter of 2020 and the funding was recorded as a reduction to property, plant and equipment and subsequent reduction to depreciation expense. Tribal Bidding Credit As part of the broadcast television spectrum incentive auction, the FCC implemented a tribal lands bidding credit to encourage deployment of wireless services utilizing 600 MHz spectrum on the lands of federally recognized tribes. The Company received a bidding credit of $7.4 million under this program in 2018. A portion of these funds will be used to offset network capital costs and a portion will be used to offset the costs of supporting the networks. The Company’s current estimate is that it will use $5.8 million to offset capital costs, consequently reducing future depreciation expense and $1.6 million to offset the cost of supporting the network which will reduce future operating expense. Through December 31, 2020, the Company has spent $5.8 million on capital expenditures and has recorded $0.2 million in offsets to the cost of supporting the network. The credits are subject to certain requirements, including deploying service by January 2021 and meeting minimum coverage metrics. If the requirements are not met the funds may be subject to claw back provisions. The Company currently expects to comply with all applicable requirements related to these funds. CBRS Auction During the third quarter of 2020, the Company participated in the FCC’s Citizens Broadband Radio Service (CBRS) auction for Priority Access Licenses (PALs) in the 3.5 GHz spectrum band. These PALs are licensed on a county-by-county basis and are awarded for a 10-year renewable term. The Company was a winning bidder for PALs located strategically throughout the United States at a total cost of approximately $20.4 million. In connection with the awarded licenses, the Company will have to achieve certain CBRS spectrum build out obligations. The Company currently expects to comply with all applicable requirements related to these licenses. RDOF In the 2020 Rural Digital Opportunity Fund Phase I Auction (“RDOF”), pending the FCC’s conclusion of the award process, the Company expects to receive approximately $20.1 million over 10 years to provide broadband coverage to over 10,000 households. Once confirmed, the Company will be obligated to provide broadband and voice services to certain eligible areas in the United States. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
EQUITY | |
EQUITY | 11. EQUITY Common Stock The Company has paid quarterly dividends on its Common Stock since January 1999. Treasury Stock On September 19, 2016, the Company’s Board of Directors authorized the repurchase of up to $50.0 million of its Common Stock, from time to time, on the open market or in privately negotiated transactions (the “2016 Repurchase Plan”). As of December 31, 2020, the Company has During the years ended December 31, 2020, 2019 and 2018, the Company repurchased the following shares under the 2016 Repurchase Plan: Shares Aggregate Cost Average Year ended December 31, Repurchased (in thousands) Repurchase Price 2020 129,273 $ 6,589 $ 50.97 2019 3,104 162 52.37 2018 30,427 1,576 51.82 During the years ended December 31, 2020, 2019 and 2018, the Company repurchased the following shares from employees to satisfy tax withholding and stock options exercise obligations incurred in connection with the vesting of restricted stock awards and the exercise of stock options: Aggregate Shares Cost Average Year ended December 31, Repurchased (in thousands) Repurchase Price 2020 32,227 $ 1,733 $ 53.78 2019 42,703 2,419 56.65 2018 141,180 10,859 76.76 Stock-Based Compensation The Company reserved 2,000,000 shares for the grant of stock options, restricted stock awards, restricted stock units, stock equivalents and awards of shares of Common Stock that are not subject to restrictions or forfeiture. As of December 31, 2020, the Company has approximately Stock Options Stock options have a term of 10 years and vest annually and ratably over a period of four years. The following table summarizes stock option activity for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 Weighted Average Remaining Number of Weighted Avg. Contractual Aggregate Options Exercise Price Term (Years) Intrinsic Value Outstanding at January 1, 2019 15,000 $ 49.34 Granted — — Forfeited — — Expired — — Exercised — — Outstanding at December 31, 2020 15,000 49.34 2.2 $ 34,600 Vested and expected to vest at December 31, 2020 15,000 49.34 2.2 $ 34,600 Exercisable at December 31, 2020 15,000 49.34 2.2 $ 34,600 Year Ended December 31, 2019 Weighted Average Remaining Number of Weighted Avg. Contractual Aggregate Options Exercise Price Term (Years) Intrinsic Value Outstanding at January 1, 2018 42,000 $ 48.61 Granted — — Forfeited (7,500) 52.97 Expired (2,500) 52.97 Exercised (17,000) 45.39 Outstanding at December 31, 2019 15,000 49.34 3.2 $ 170,900 Vested and expected to vest at December 31, 2019 15,000 49.34 3.2 $ 170,900 The following table summarizes information relating to options granted and exercised during the years ended December 31, 2020, 2019 and 2018 (in thousands, except fair value of options granted data): 2020 2019 2018 Aggregate intrinsic value of options exercised $ — $ 229 $ 5,927 Cash proceeds received upon exercise of options — — 72 The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s closing Common Stock price on December 31st and the exercise price, multiplied by the number of the in-the-money stock options) that would have been received by the stock option holders had all stock options holders exercised their stock options on December 31st. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s Common Stock. The Company has not granted any options since 2017. The Company did Restricted Stock Restricted stock issued under the 2008 Equity Investment Plan vests over four years. The following table summarizes restricted stock activity during the year ended December 31, 2020: Weighted Avg. Shares Fair Value Unvested as of January 1, 2020 204,146 $ 60.13 Granted 116,404 50.45 Forfeited (3,323) 59.99 Vested and issued (93,604) 61.75 Unvested as of December 31, 2020 223,623 $ 54.42 The following table summarizes restricted stock activity during the year ended December 31, 2019: Weighted Avg. Shares Fair Value Unvested as of January 1, 2019 200,653 $ 65.21 Granted 108,278 54.68 Forfeited (18,579) 57.04 Vested and issued (86,206) 65.77 Unvested as of December 31, 2019 204,146 $ 60.13 In connection with the grant of restricted shares, the Company recognized $5.6 million, $6.4 million and $6.1 million of compensation expense within its income statements for the years ended December 31, 2020, 2019, and 2018, respectively. The Company recognized The unvested shares as of December 31, 2020 represent $8.3 million in unamortized stock based compensation which will be recognized over a weighted average period of 2.4 years. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 12. INCOME TAXES The components of income before income taxes for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands): 2020 2019 2018 Domestic $ (17,689) $ (15,661) $ 28,917 Foreign 17,782 21,733 24,825 Total $ 93 $ 6,072 $ 53,742 The following is a reconciliation from the tax computed at statutory income tax rates to the Company’s income tax expense for the years ended December 31, 2020, 2019, and 2018 (in thousands): 2020 2019 2018 Tax computed at statutory US federal income tax rates $ 20 $ 1,275 $ 11,286 Non-controlling interest (851) (648) (1,114) Foreign tax rate differential 1,866 (1,769) (2,662) Over (under) provided in prior periods (520) (244) (4,683) Nondeductible expenses 1,504 3,781 1,610 Benefit Attributable CARES Act (3,064) — — Capitalized transactions costs — 19 62 Change in tax reserves 2,148 3,883 10,657 State Taxes, net of federal benefit (409) (429) 1,674 Change in valuation allowance 33 (35) 1,539 Investment Tax Credit 84 (1,215) — Refund Claim for Domestic Production Deduction — — 235 Tax Cuts and Jobs Act of 2017 — — (148) Capital loss — — 15 Deferred income tax revaluation (10) (513) — Other, net — — 399 Total Income Tax Expense $ 801 $ 4,105 $ 18,870 The components of income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands): \ 2020 2019 2018 Current: United States—Federal $ 504 $ (1,559) $ 24,546 United States—State 3 (336) 4,506 Foreign 7,611 8,192 13,060 Total current income tax expense $ 8,118 $ 6,297 $ 42,112 Deferred: United States—Federal $ (6,527) $ (1,805) $ (17,947) United States—State (413) (93) (2,832) Foreign (377) (294) (2,463) Total deferred income tax expense (benefit) $ (7,317) $ (2,192) $ (23,242) Consolidated: United States—Federal $ (6,023) $ (3,364) $ 6,599 United States—State (410) (429) 1,674 Foreign 7,234 7,898 10,597 Total income tax expense (benefit) $ 801 $ 4,105 $ 18,870 The significant components of deferred tax assets and liabilities are as follows as of December 31, 2020 and 2019 (in thousands): 2020 2019 Deferred tax assets: Accounts receivable and inventory allowances $ 1,972 $ 1,603 Basis in investments 7,512 6,937 Accrued expenses 4,701 5,923 Deferred revenue 3,141 2,864 Employee benefits 4,363 3,559 Other, net 744 — Net operating losses 26,582 40,491 Tax Credits 1,997 2,726 Operating lease liability 14,648 15,869 Total deferred tax asset 65,660 79,972 Deferred tax liabilities: Acquired intangible assets, property and equipment 26,736 30,419 Right-of-use asset 14,594 15,869 Prepaid expense 209 181 Other, net — 195 Total deferred tax liabilities 41,539 46,664 Valuation allowance (31,014) (39,406) Net deferred tax liabilities $ (6,893) $ (6,098) Deferred tax assets and liabilities are reflected in the accompanying consolidated balance sheets as follows (in thousands): 2020 2019 Deferred tax assets: Long term $ 3,782 $ 2,582 Total deferred tax asset $ 3,782 $ 2,582 Deferred tax liabilities: Long term $ (10,675) $ (8,680) Total deferred tax liabilities $ (10,675) $ (8,680) Net deferred tax liabilities $ (6,893) $ (6,098) , respectively. On March 27, 2020, the U.S. federal government enacted the CARES Act. The CARES Act, among other things, allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The effective tax rate for the year ended December 31, 2020 was primarily impacted by the following items: (i) a expenses, (iii) a $1.2 million deferred tax benefit related to an investment tax credit, and (iv) the mix of income generated among the jurisdictions in which we operate along with the exclusion of losses in jurisdictions where we cannot benefit from those losses as required by ASC 740-270-30-36(a), primarily in the US Virgin Islands and India. million respectively. Of these, The Company assesses available positive and negative evidence to estimate if sufficient future taxable income will be generated to realize the existing deferred tax assets. A significant piece of negative evidence evaluated is cumulative losses incurred in certain reporting jurisdictions over the three-year period ended December 31, 2020. Other negative evidence examined includes, but is not limited to, losses expected in early future years, a history of tax benefits expiring unused, uncertainties whose unfavorable resolution would adversely affect future results, and brief carryback, carry forward periods. On the basis of this evaluation, the Company believed it was more likely than not that the benefit from some of these federal, state, and foreign deferred taxes would not be realized. million. The valuation allowance primarily relates to foreign net operating losses, with the remaining amount applicable to other net deferred tax assets which the Company does not expect to be able to realize. As of December 31, 2020, the Company had an estimated $145.1 million of undistributed earnings attributable to foreign subsidiaries for which no provision for state income taxes or foreign withholding taxes have been made because it is expected that such earnings will be reinvested outside the U.S. indefinitely unless repatriation can be done substantially tax-free. The Company will generally be free of additional U.S. federal tax consequences on distributed foreign subsidiary earnings due to a dividends received deduction implemented as part of the Tax Act for earnings distributed after January 1, 2018. Additionally, due to the one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiary earnings, the majority of previously unremitted earnings have already been subjected to U.S. federal income tax. The Company continues to assert indefinite reinvestment on outside basis differences in its non-U.S. subsidiaries, with the exception of the Vibrant entities, which are held for sale as of December 31, 2020. Additionally any determination of the amount of the unrecognized deferred tax liability on outside basis differences is not practicable because of the complexity of laws and regulations, the varying tax treatment of alternative repatriation scenarios and the variation due to multiple potential assumptions relating to the timing of any future repatriation. The Company had unrecognized tax benefits (including interest and penalty) of $40.8 million as of December 31, 2020, $38.6 million as of December 31, 2019 and $34.7 million as of December 31, 2018. The net increase of the reserve during the year ended December 31, 2020 was attributable to an increase in tax positions for prior periods of $2.1 million, a net increase in tax positions for the current period of $3.0 million and partially offset by a lapse in statute of a prior year position of $2.9 million. The following shows the activity related to unrecognized tax benefits (not including interest and penalty) during the three years ended December 31, 2020 (in thousands): Gross unrecognized uncertain tax benefits at December 31, 2017 20,961 Increase in unrecognized tax benefits taken during a prior period 7,293 Increase in unrecognized tax benefits taken during the current period 3,408 Lapse in statute of limitations (1,430) Settlements — Gross unrecognized uncertain tax benefits at December 31, 2018 30,232 Increase in unrecognized tax benefits taken during a prior period — Increase in unrecognized tax benefits taken during the current period 3,383 Lapse in statute of limitations (933) Settlements — Gross unrecognized uncertain tax benefits at December 31, 2019 $ 32,682 Increase in unrecognized tax benefits taken during a prior period — Increase in unrecognized tax benefits taken during the current period 2,964 Lapse in statute of limitations (1,768) Settlements — Gross unrecognized uncertain tax benefits at December 31, 2020 $ 33,878 All $40.7 million of gross unrecognized uncertain tax benefits (including interest and penalty) would impact the effective tax rate if recognized. The Company and its subsidiaries file income tax returns in the US and in various, state and local and foreign jurisdictions. The statute of limitations related to the consolidated US federal income tax return is closed for all tax years up to and including 2013. The expiration of the statute of limitations related to the various state and foreign income tax returns that the Company and subsidiaries file varies by jurisdiction. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
RETIREMENT PLANS | |
RETIREMENT PLANS | 13. RETIREMENT PLANS The Company has noncontributory defined benefit pension plans as well as noncontributory postretirement benefit plans offering defined medical, dental, vision, and life benefits for certain employees of its International Telecom segment. The Company’s pension and other postretirement benefit plans are closed to new participants and only grandfathered participants continue to accrue additional benefits. Also, in 2020 the Company began the process of winding up one of its benefit plans. The Company reviews the funded status of its pension plans and makes contributions based on that analysis. The benefits are based on the participants’ compensation during their employment and the credited service years earned by participants. The Company funds the other postretirement benefit plans as benefits are paid. The weighted-average rates assumed in the actuarial calculations for the pension and other postretirement benefit plans are as follows as of December 31, 2020, 2019 and 2018: 2020 2019 2018 Discount Rate – Pension Benefit Obligation 2.6 % 4.2 % 4.7 % Discount Rate – Pension Benefit Cost 3.5 % 4.5 % 4.3 % Discount Rate – Postretirement Benefit Obligation 2.5 % 3.5 % 4.5 % Discount Rate – Postretirement Benefit Cost 3.5 % 4.5 % 3.9 % Annual salary increase n/a 6.5 % 6.5 % Expected long-term return on plan assets 5.1 % 6.1 % 6.1 % The expected long-term rate of return on plan assets was determined based on several factors including input from pension investment consultants, projected long-term returns of equity and bond indices, and historical returns over the life of the related obligations of the fund. The Company, in conjunction with its pension investment consultants, reviews its asset allocation periodically and rebalances its investments when appropriate in an effort to earn the expected long-term returns. The Company will continue to evaluate its long-term rate of return assumptions at least annually and will adjust them as necessary. The annual salary increase assumption is no longer applicable as the plan participants no longer accrue additional service. The discount rate was determined based on a review of market data including yields on high quality corporate bonds with maturities approximating the remaining life of the project benefit obligations. The other postretirement benefit plans healthcare cost trend assumptions is based on health care trend rates. The 2020 assumed medical health care cost trend rate is 6% trending to an ultimate rate of 4 % in 2074. The 2020 and ultimate assumed dental care cost trend rate is 4 %. 2020 2019 Pension Benefits Postretirement Benefits Pension Benefits Postretirement Benefits Projected benefit obligations: Balance at beginning of year: $ 81,977 $ 4,899 $ 76,900 $ 4,012 Service cost 439 139 1,709 126 Interest cost 2,585 163 3,472 182 Benefits and settlements paid (4,791) (450) (5,738) (354) Actuarial (gain) loss 8,651 759 5,739 933 Settlement (89) — (105) — Balance at end of year $ 88,772 $ 5,510 $ 81,977 $ 4,899 Plan net assets: Balance at beginning of year: $ 83,350 $ — $ 77,530 $ — Actual return on plan assets 10,398 — 10,678 — Company contributions 958 450 838 354 Benefits and settlements paid (5,354) (450) (5,696) (354) Balance at end of year $ 89,352 $ — $ 83,350 $ — Over/ (Under) funded status of plan $ 580 $ (5,510) $ 1,373 $ (4,899) The Company reports an asset or liability on its balance sheet equal to the funded status of its pension and other postretirement benefit plans. Plans in an overfunded status are aggregated and recorded as a net pension benefit asset in other assets. Plans in an underfunded status are aggregated and recorded as a net postretirement benefit liability in other liabilities. The funded status of the Company’s pension and other retirement benefit plans is below (in thousands): 2020 2019 GTT Pension Benefit Viya Pension Benefit Postretirement Benefits GTT Pension Benefit Viya Pension Benefit Postretirement Benefits Projected benefit obligation $ 15,609 $ 73,163 $ 5,510 $ 15,594 $ 66,383 $ 4,899 Plan Net Assets 15,609 73,743 — 15,054 68,296 — Over/ (Under) funded status of plan $ — $ 580 $ (5,510) $ (540) $ 1,913 $ (4,899) The Company’s investment policy for its pension assets is to have a reasonably balanced investment approach, with a long-term bias toward debt investments. The Company’s strategy allocates plan assets among equity, debt and other assets to achieve long-term returns without significant risk to principal. The pension fund has limitations from investing in the equity, debt or other securities of the employer, its subsidiaries or associates of the employer or any company of which the employer is a subsidiary or an associate. The fair values for the pension plan’s net assets, by asset category, at December 31, 2020 are as follows (in thousands): Asset Category Total Level 1 Level 2 Level 3 Cash, cash equivalents, money markets and other $ 5,037 $ 5,037 $ — $ — Common stock 27,785 24,781 3,004 — Mutual funds - fixed income 9,494 9,494 — — Mutual funds - equities 8,278 8,278 — — Fixed income securities 37,225 — 37,225 — Other 1,533 1,533 — — Total $ 89,352 $ 49,123 $ 40,229 $ — The fair values for the pension plan’s net assets, by asset category, at December 31, 2019 are as follows (in thousands): Asset Category Total Level 1 Level 2 Level 3 Cash, cash equivalents, money markets and other $ 4,982 $ 4,982 $ — $ — Common stock 26,702 22,451 4,251 — Mutual funds - fixed income 12,970 12,970 — — Mutual funds - equities 10,921 10,921 — — Fixed income securities 26,307 1,178 25,129 — Other 1,468 1,031 — 437 Total $ 83,350 $ 53,533 $ 29,380 $ 437 2020 2019 Cash, cash equivalents, money markets and other 6 % 6 % Common stock 31 32 Mutual funds - fixed income 11 16 Mutual funds - equities 9 13 Fixed income securities 41 32 Other 2 1 Total 100 % 100 % Amounts recognized on the Company’s consolidated balance sheets consist of (in thousands): As of December 31, 2020 2019 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Accrued and current liabilities $ — $ 381 $ — $ 340 Other Liabilities — 5,129 540 4,559 Other Assets 580 — 1,913 — Accumulated other comprehensive income, net of tax (158) (411) 1,484 359 Amounts recognized in accumulated other comprehensive income consist of (in thousands): As of December 31, 2020 2019 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Unrecognized net actuarial gain (loss) $ (1,159) $ (411) $ 540 $ 359 Accumulated other comprehensive income, pre-tax (1,159) (411) 540 359 Accumulated other comprehensive income (loss), net of tax (158) (411) 1,484 359 Components of the plan’s net periodic pension cost are as follows for the years ended December 31, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Pension benefits Postretirement benefits Operating expense Service cost $ 439 $ 139 $ 1,709 $ 126 $ 1,794 $ 147 Non-operating expense Interest cost 2,585 163 3,472 182 3,279 161 Expected return on plan assets (3,060) — (4,571) — (4,835) — Amortization of actuarial (gain) loss — (11) 29 (58) 121 (67) Settlement 89 — (35) — — — Net periodic pension cost $ 53 $ 291 $ 604 $ 250 $ 359 $ 241 The Company is currently evaluating whether it will make any contributions to its pension and postretirement benefit plans during the year ending December 31, 2021. The following estimated benefits, which reflect expected future service, as appropriate, are expected to be paid over the next 10 years as indicated below (in thousands): Pension Postretirement Fiscal Year Benefits Benefits 2021 $ 19,691 $ 386 2022 3,730 359 2023 3,703 276 2024 4,048 319 2025 3,706 356 2026-2030 19,058 1,679 Total $ 53,936 $ 3,375 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Regulatory and Litigation Matters The Company and its subsidiaries are subject to certain regulatory and legal proceedings and other claims arising in the ordinary course of business, some of which involve claims for damages and taxes that are substantial in amount. The Company believes that, except for the items discussed below, for which the Company is currently unable to predict the final outcome, the disposition of proceedings currently pending will not have a material adverse effect on the Company’s financial position or results of operations. In 1990, the Company’s Guyana subsidiary, GTT, was awarded a license to provide domestic and international voice and data services in Guyana on an exclusive basis until December 2030. Since 2001, the Government of Guyana has stated its intention to introduce additional competition into Guyana’s telecommunications sector. In connection therewith, the Company and GTT met on several occasions with officials of the Government of Guyana to discuss potential modifications of GTT’s exclusivity and other rights under the existing agreement and license. On October 5, 2020, the Prime Minister of Guyana formally implemented telecommunications legislation previously passed by the Guyana Parliament in 2016 that introduces material changes to many features of Guyana’s existing telecommunications regulatory regime with the intention of creating a more competitive market. At that time, the Company was issued a new license to provide domestic and international voice as well as data services and mobile services in Guyana. Two of the Company’s competitors were issued service licenses as well. While the Company has requested details of its competitors’ licenses, such information has not been made public by the Guyana Telecommunications Agency, and the Company is not yet able to ascertain whether the licenses issued to its competitors permit any competitors to provide services that have been subject to GTT’s exclusive rights contained in its 1990 license. On October 23, 2020, the Government of Guyana also brought into effect new telecommunications regulations called for by the telecommunications legislation. The regulations include new requirements for the market as a whole, which impact the Company’s operations, administrative reporting and services. There can be no assurance that these regulations will be effectively implemented, or that they will be administered in a fair and transparent manner. Historically, GTT has been subject to other long-standing litigation proceedings and disputes in Guyana that have not yet been resolved. The Company believes that none of these additional proceedings would, in the event of an adverse outcome, have a material impact on the Company’s consolidated financial position, results of operations or liquidity. In a letter dated September 8, 2006, the National Frequency Management Unit (“NFMU”) agreed that total spectrum fees in Guyana should not increase for the years 2006 and 2007. However, that letter implied that spectrum fees in 2008 and onward may be increased beyond the amount GTT agreed to with the Government of Guyana. GTT has objected to the NFMU’s proposed action and reiterated its position that an increase in fees prior to development of an acceptable methodology would violate the Government’s prior agreement. In 2011, GTT paid the NFMU $2.6 million representing payments in full for 2008, 2009 and 2010. However, by letter dated November 23, 2011, the NFMU stated that it did not concur with GTT’s inference that the amount was payment in full for the specified years as it was NFMU’s continued opinion that the final calculation for spectrum fees was not agreed upon and was still an outstanding issue. By further letter dated November 24, 2011, the NFMU further rejected a proposal that was previously submitted jointly by GTT and another communications provider that outlined a recommended methodology for the calculation of these fees. The NFMU stated that it would prepare its own recommendation for consideration by the Minister of Telecommunications, who would decide the matter. GTT has paid undisputed spectrum fees according to the methodology used for its 2011 payments, and has reserved amounts payable according to this methodology. There have been limited further discussions on this subject and GTT has not had the opportunity to review any recommendation made by the NFMU to the Minister. On May 8, 2009, a GTT competitor, Digicel, filed a lawsuit in Guyana challenging the legality of GTT’s exclusive license rights under Guyana’s constitution and GTT intervened in the suit in order to oppose Digicel’s claims. The case remains pending. The Company believes that any legal challenge to GTT’s exclusive license rights granted in 1990 is without merit and the Company intends to defend vigorously against such legal challenge. GTT has filed several lawsuits in the High Court of Guyana asserting that, despite its denials, Digicel is engaged in international bypass in violation of GTT’s exclusive license rights, the interconnection agreement between the parties, and the laws of Guyana. GTT is seeking injunctive relief to stop the illegal bypass activity and monetary damages. Digicel filed counterclaims alleging that GTT has violated the terms of the interconnection agreement and Guyana laws. These suits, filed in 2010 and 2012, have been consolidated with Digicel’s constitutional challenge described above. Prior to the declaration of COVID-19 related travel and business restrictions in Guyana, the consolidated cases were scheduled to proceed to trial in 2020. GTT expects to resume the litigation following the lifting of COVID-19 related restrictions and intends to prosecute these matters vigorously; however, the Company cannot accurately predict at this time when the consolidated suit will go to trial. GTT is also involved in several legal claims regarding its tax filings with the Guyana Revenue Authority dating back to 1991 regarding the deductibility of intercompany advisory fees as well as other tax assessments. The Company maintains that any liability GTT might be found to have with respect to the disputed tax assessments, totaling $44.1 million, would be offset in part by the amounts necessary to ensure that GTT’s return on investment was no less than 15% per annum for the relevant periods. The Company believes that some adverse outcome is probable and has accordingly accrued $5.0 million as of December 31, 2020 for these matters. Other Obligations The Company has obligations under non-cancellable contracts for network facilities and transport services, agreements for software licensing, as well as certain agreements to purchase goods or services. Future minimum payments required under these commitments are as follows at December 31, 2020 (in thousands): 2021 $ 22,771 2022 16,065 2023 11,463 2024 10,416 2025 1,143 Thereafter 1,838 Total obligations $ 63,696 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 15. SEGMENT REPORTING Through December 31, 2020, the Company has the following three reportable and operating segments: i) US Telecom, ii) International Telecom, and iii) Renewable Energy. The following tables provide information for each operating segment (in thousands): For the Year Ended December 31, 2020 International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated Revenue Communication Services Mobility $ 83,136 $ 9,626 $ — $ — $ 92,762 Fixed 230,375 22,269 — — 252,644 Carrier Services 7,120 79,448 — — 86,568 Other 1,535 — — — 1,535 Total Communication Services Revenue 322,166 111,343 — — 433,509 Other Renewable Energy — — 4,555 — 4,555 Managed Services 6,467 — — — 6,467 Construction — 10,913 — — 10,913 Total Other Revenue 6,467 10,913 4,555 — 21,935 Total Revenue 328,633 122,256 4,555 — 455,444 Depreciation and amortization 56,284 23,325 2,216 6,486 88,311 Non-cash stock-based compensation 49 15 262 5,586 5,912 Operating income (loss) 58,064 7,388 (23,749) (32,523) 9,180 For the Year Ended December 31, 2019 International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated Revenue Communication Services Mobility $ 84,560 $ 10,532 $ — $ — $ 95,092 Fixed 224,534 14,211 — — 238,745 Carrier Services 9,070 83,906 — — 92,976 Other 1,295 — — — 1,295 Total Communication Services Revenue 319,459 108,649 — — 428,108 Other Renewable Energy — — 5,534 — 5,534 Managed Services 5,080 — — 5,080 Total Other Revenue 5,080 — 5,534 — 10,614 Total Revenue 324,539 108,649 5,534 — 438,722 Depreciation and amortization 55,993 23,119 3,305 6,708 89,125 Non-cash stock-based compensation 405 — 87 5,892 6,384 Operating income (loss) 46,921 8,064 (7,243) (34,365) 13,377 For the Year Ended December 31, 2018 International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated Revenue Communication Services Mobility $ 85,152 $ 11,759 $ — $ — $ 96,911 Fixed 213,765 7,860 — — 221,625 Carrier Services 8,846 95,861 — — 104,707 Other 2,080 — — — 2,080 Total Communication Services Revenue 309,843 115,480 — — 425,323 Other Renewable Energy — — 22,158 — 22,158 Managed Services 3,726 — — — 3,726 Total Other Revenue 3,726 — 22,158 — 25,884 Total Revenue 313,569 115,480 22,158 — 451,207 Depreciation and amortization 48,889 24,615 6,589 5,626 85,719 Non-cash stock-based compensation 88 — 105 6,227 6,420 Operating income (loss) 45,022 36,813 13,440 (34,252) 61,023 International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated December 31, 2020 Cash, Cash equivalents, and Investments $ 45,848 $ 26,921 $ 4,311 $ 26,845 $ 103,925 Total current assets 107,315 65,806 39,057 27,887 240,065 Fixed assets, net 449,888 73,717 — 12,857 536,462 Goodwill 25,421 35,270 — — 60,691 Total assets 642,834 265,797 39,045 136,035 1,083,711 Total current liabilities 80,875 43,200 1,038 22,815 147,928 Total debt 72,823 — — — 72,823 December 31, 2019 Cash, Cash equivalents, and Investments $ 43,125 $ 38,240 $ 25,054 $ 55,284 $ 161,703 Total current assets 91,497 54,207 27,534 55,485 228,723 Fixed assets, net 466,523 69,184 48,421 21,453 605,581 Goodwill 25,421 35,270 — — 60,691 Total assets 647,228 222,356 76,723 184,419 1,130,726 Total current liabilities 77,644 24,905 2,745 14,375 119,669 Total debt 86,426 — — — 86,426 Capital Expenditures International US Renewable Corporate and Year ended December 31, Telecom Telecom Energy Other (1) Consolidated 2020 $ 38,895 $ 29,883 $ 2,932 $ 3,613 $ 75,323 2019 42,029 17,490 6,448 6,758 72,725 (1) Reconciling items refer to corporate overhead expenses and consolidating adjustments. The table below identifies the Company’s revenues and long-lived assets by geographic location. The Company attributes revenue to geographic location based on location of the customer (in thousands): 2020 2019 2018 Long-Lived Long-Lived Long-Lived Revenues Assets Revenues Assets Revenues Assets US $ 122,256 $ 308,138 $ 123,508 $ 297,084 $ 132,288 $ 234,514 Guyana 103,071 141,487 105,290 145,079 102,056 151,084 US Virgin Islands 90,368 230,630 83,795 235,384 79,785 216,173 Bermuda 103,471 116,346 104,760 128,208 103,281 137,992 Other Foreign Countries 36,278 47,045 21,369 96,247 33,797 91,775 $ 455,444 $ 843,647 $ 438,722 $ 902,002 $ 451,207 $ 831,538 |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2020 | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II ATN INTERNATIONAL, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS (Amounts in Thousands) Balance at Purchase Charged to Balance Beginning Price Costs and at End of Year Accounting Expenses Deductions of Year YEAR ENDED, December 31, 2018 Description: Valuation allowance on foreign tax credit carryforwards $ 8,226 $ — $ (8,226) $ — $ — Valuation allowance on capital loss carryforwards 1,881 — (1,881) — — Valuation allowance on foreign net operating losses and other deferred taxes 25,722 — 5,877 157 31,442 Allowance for credit losses 15,023 — 5,134 3,695 16,462 $ 50,852 $ — $ 904 $ 3,852 $ 47,904 YEAR ENDED, December 31, 2019 Description: Valuation allowance on foreign tax credit carryforwards $ — $ — $ — $ — $ — Valuation allowance on capital loss carryforwards — — — — — Valuation allowance on foreign net operating losses and other deferred taxes 31,442 — 10,811 2,847 39,406 Allowance for credit losses 16,462 — 5,816 9,554 12,724 $ 47,904 $ — $ 16,627 $ 12,401 $ 52,130 YEAR ENDED, December 31, 2020 Description: Valuation allowance on foreign tax credit carryforwards $ — $ — $ — $ — $ — Valuation allowance on capital loss carryforwards — — — — — Valuation allowance on foreign net operating losses and other deferred taxes 39,406 — 775 9,167 31,014 Allowance for credit losses 12,724 — 5,010 5,613 12,121 $ 52,130 $ — $ 5,785 $ 14,780 $ 43,135 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company, its majority-owned subsidiaries and certain entities, which are consolidated in accordance with the provisions of the Financial Accounting Standards Board’s (“FASB”) authoritative guidance on the consolidation of variable interest entities since it is determined that the Company is the primary beneficiary of these entities. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates relate to the allowance for credit losses on trade receivables, useful lives of the Company’s fixed and finite-lived intangible assets, allocation of purchase price to assets acquired and liabilities assumed in business combinations, fair value of indefinite-lived intangible assets, goodwill and income taxes. Actual results could differ significantly from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all investments with an original maturity of three months or less at date of purchase to be cash equivalents. The Company places its cash and temporary investments with banks and other institutions that it believes have a high credit quality. At December 31, 2020, the Company had deposits with banks in excess of FDIC insured limits and $32.3 million of its cash is on deposit with noninsured institutions such as corporate money market issuers and cash held in foreign banks. The Company’s cash and cash equivalents are not subject to any restrictions (see Note 9). As of December 31, 2020 and 2019, the Company held $5.7 million and $6.6 million, respectively, of its cash in Guyana dollars. While there are risks associated with the conversion of Guyana dollars to US dollars due to limited liquidity in the Guyana foreign currency markets, to date it has not prevented the Company from converting Guyana dollars into US dollars within a given three month period or from converting at a price that reasonably approximates the reported exchange rate. |
Short Term Investments | Short Term Investments The Company's short-term investments consist of corporate bonds, which have remaining maturities of more than three months at the date of purchase, and equity securities classified as available for sale, which are stated at fair value. Unrealized gains and losses are recorded in other income. The estimated fair values of investments are based on quoted market prices as of the end of the reporting period. |
Restricted Cash | Restricted Cash The Company generally classifies cash that is legally restricted as to withdrawal or usage as restricted cash. Generally, the cash is restricted due to debt service obligations, acquisitions, or to support the Company’s telecommunications operations. In 2018, the Company disposed of million of restricted cash as a result of the US Solar Transaction described in Note 6. |
Allowance for Credit Losses | Allowance for Credit Losses The Company adopted ASU 2016-13 on January 1, 2020. The standard requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses is based on all relevant information including historical information, current conditions, and reasonable and supportable forecasts that affect the collectability of the amounts. The Company adopted ASU 2016-13 using the modified retrospective approach, however, there was no impact of adoption on retained earnings. The standard impacted the Company’s calculation of credit losses from trade receivables. Historically, the Company recorded credit losses subsequent to the initial revenue transaction. After adoption of ASU 2016-13, the Company will record an estimate of future credit losses in conjunction with the revenue transactions based on the information available including historical experience, credit worthiness of customers, the Company’s historical experience with customers, current market and economic conditions, and management’s expectations of future conditions. Those estimates will be updated as additional information becomes available. Uncollectible amounts are charged against the allowance account. The Company’s allowance for uncollectible accounts receivable is based on management’s assessment of the collectability of assets pooled together with similar risk characteristics. There is no significant impact to the Company’s operating results for the current period due to the adoption of this standard. |
Inventory, Materials and Supplies | Inventory, Materials and Supplies Inventory, materials and supplies primarily include handsets and other equipment held for sale to customers. These balances are recorded at the lower of cost or market cost being determined on the basis of specific identification and market determined using replacement. |
Fixed Assets | Fixed Assets The Company’s fixed assets are recorded at cost and depreciated using the straight-line method generally between 3 and 39 years . Expenditures for major renewals and betterments that extend the useful lives of fixed assets are capitalized. Repairs and replacements of minor items of property are charged to maintenance expense as incurred. The cost of fixed assets in service and under construction includes internal and external costs necessary to bring an asset to the condition and location necessary for its intended use. Grants received for the construction of assets are recognized as a reduction of the cost of fixed assets, a reduction of depreciation expense over the useful lives of the assets and as an investing cash flow in the statements of cash flows. The Company capitalizes certain costs of developing and purchasing new information systems in accordance with internal use software guidance. These costs are depreciated over the useful life of the information system. The Company also incurs implementation costs associated with cloud computing arrangements. If these costs do not meet internal use software capitalization guidance, the implementation costs are recorded as prepaid assets and expensed through operating expense over the life of the arrangement. The fair value of a liability for an asset retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made. In periods subsequent to initial measurement, period-to-period changes in the liability for an asset retirement obligation resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flows are recognized. The increase in the carrying value of the associated long-lived asset is depreciated over the corresponding estimated economic life. The consolidated balance sheets include accruals of $ 4.2 million and $4.0 million as of December 31, 2020 and 2019, respectively, for estimated costs associated with asset retirement obligations. In accordance with the authoritative guidance for accounting for the impairment or disposal of long-lived assets, the Company evaluates the carrying value of long-lived assets, including property and equipment, in relation to the operating performance and future undiscounted cash flows of the underlying business whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss exists when estimated undiscounted cash flows attributable to an asset are less than its carrying amount. If an asset is deemed to be impaired, the amount of the impairment loss recognized represents the excess of the asset’s carrying value as compared to its estimated fair value, based on management’s assumptions and projections. Management’s estimate of the future cash flows attributable to its long-lived assets and the fair value of its businesses involve significant uncertainty. Those estimates are based on management’s assumptions of future results, growth trends and industry conditions. If those estimates are not met, the Company could have additional impairment charges in the future, and the amounts may be material. The Company did not record any fixed asset impairments for the year ended December 31, 2020, 2019 or 2018. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill is recognized in business combinations equal to the amount by which the cost of acquired net assets exceeded the fair value of those net assets on the date of acquisition. The Company allocates goodwill to reporting units at the time of acquisition and bases that allocation on which reporting units will benefit from the acquired assets and liabilities. Reporting units are defined as operating segments or one level below an operating segment, referred to as a component. The Company has determined that its reporting units are components of its multiple operating segments. The Company assesses goodwill for impairment on an annual basis in the fourth quarter or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The assessment begins with a qualitative analysis to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the reporting unit passes this analysis, the impairment assessment is complete and no impairment is recorded. If the reporting unit does not pass the analysis, the Company performs additional quantitative analysis by calculating the fair value of the reporting unit. If the fair value exceeds the carrying value, the test is complete and no impairment is recorded. If the carrying value of the reporting unit, including goodwill, exceeds the fair value of the reporting unit an impairment charge is recorded equal to the excess, but not more than the total amount of goodwill allocated to the reporting unit. A significant majority of the Company’s telecommunications licenses are not amortized and are carried at their historical costs. The Company believes that telecommunications licenses generally have an indefinite life based on the historical ability to renew such licenses, that such renewals may be obtained indefinitely and at little cost, and that the related technology used is not expected to be replaced in the foreseeable future. The Company has elected to perform its annual testing of its telecommunications licenses in the fourth quarter of each fiscal year, or more often if events or circumstances indicate that there may be impairment. The assessment begins with a qualitative analysis to determine whether it is more likely than not that the license fair value exceeds its carrying value. If the reporting unit passes this analysis, the impairment assessment is complete and no impairment is recorded. If the reporting unit does not pass the analysis, the Company performs additional quantitative analysis to calculate the fair value of the license. If the carrying value of the license exceeds the license fair value an impairment charge is recorded. As a part of the impairment test the Company assesses the appropriateness of the application of the indefinite-lived assertion. If the value of these assets were impaired by some factor, such as an adverse change in the subsidiary’s operating market, the Company may be required to record an impairment charge. The Company performed its annual impairment assessment of its goodwill and indefinite-lived intangible assets (telecommunications licenses) for the years ended December 31, 2020 and 2019. See Note 8 for a discussion of the Company’s impairment of a portion of its goodwill within its Renewable Energy segment during the year ended December 31, 2019. |
Other Intangible Assets | Other Intangible Assets Intangible assets resulting from the acquisitions of entities accounted for using the purchase method of accounting are estimated by management based on the fair value of assets acquired. These include acquired customer relationships, tradenames, and franchise rights. Customer relationships are amortized over their estimated lives ranging from 7-13 years, which are based on the pattern in which economic benefit of the customer relationship is estimated to be realized. |
Debt | Debt |
Non-Controlling Interests | Non-Controlling Interests The non- controlling interests in the accompanying consolidated balance sheets reflect the original investments and subsequent capital contributions made by the minority stockholders in the Company’s subsidiaries which are less than wholly-owned. Non-controlling interests acquired in a business combination are initially recorded at fair value. Subsequently, all non-controlling interest is adjusted for the minority stockholder’s proportional share of the earnings or losses, net of any distributions. |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss), by component, were as follows (in thousands): Projected Pension and Postretirement Benefit Translation Obligations Adjustment Other Total Balance at December 31, 2017 $ 3,127 $ 355 $ 264 $ 3,746 Unrecognized actuarial gain (loss), net of tax of $0.6 million (840) — — (840) Foreign currency translation adjustment — (4,390) — (4,390) Adoption of ASU 2016-01 — — (203) (203) Interest rate swap — — 78 78 Balance at December 31, 2018 $ 2,287 $ (4,035) $ 139 $ (1,609) Unrecognized actuarial gain (loss), net of tax of $0.1 million (445) — — (445) Foreign currency translation adjustment — (1,041) — (1,041) Interest rate swap — — (187) (187) Balance at December 31, 2019 1,842 (5,076) (48) (3,282) Unrecognized actuarial gain (loss), net of tax of $0.1 million (2,412) — — (2,412) Foreign currency translation adjustment — 37 — 37 Interest rate swap — — (101) (101) Reclassification of foreign currency losses on assets held for sale — — 6,036 6,036 Balance at December 31, 2020 $ (570) $ (5,039) $ 5,887 $ 278 Amounts reclassified from accumulated other comprehensive income to net income for pension and other postretirement benefits plans were $(100.0) thousand, $(64.0) thousand, and $54.0 thousand for the year ended December 31, 2020, December 31, 2019, and December 31, 2018, respectively. Additionally, |
Revenue Recognition | Revenue Recognition The Company earns revenue from its telecommunication and renewable energy operations. The Company recognizes revenue through the following steps: - Identification of the contract with a customer - Identification of the performance obligations in the contract - Determination of the transaction price - Allocation of the transaction price to the performance obligations in the contract - Recognize revenue when, or as, the Company satisfies performance obligations Revenue Recognition- Communications Services Communication services consists of Mobility, Fixed, and Carrier Services revenue. Mobility revenue consists of retail revenue generated from providing mobile voice and data services to subscribers over the Company’s wireless networks and the sale of related equipment such as handsets and other accessories to its subscribers. The service revenue generated is recognized over time as the service is rendered and revenues from equipment are recognized when the equipment is delivered to the customer. Management considers transactions where customers purchase subsidized or discounted equipment and mobile voice or data services to be a single contract. For these contracts, the transaction price is allocated to the equipment and mobile service based on their standalone selling prices. The standalone selling price is based on the amount the Company charges for the equipment and service to similar customers. Equipment revenue is recognized when the equipment is delivered to customers and service revenue is recognized as service is rendered. Fixed Communications revenue is primarily generated by internet, voice, and video service revenues provided to retail and enterprise customers over the Company’s wireline networks. Revenue from these contracts is recognized over time as the service is rendered to the customer. Fixed revenue also includes revenue from government grants and is recognized in accordance with the grant terms and conditions. In the Company’s International Telecom segment, Carrier Services revenue is generated from providing international long-distance services, roaming services to other carriers’ customers roaming into the Company’s retail markets, transport services, and access services provided to other telecommunication carriers. In the Company’s US Telecom segment, Carrier Services revenue includes services provided under the FirstNet Transaction, wholesale roaming revenues, the provision of network switching services, tower lease revenue and other services provided to carriers. The Company also has certain wholesale roaming agreements that contain stand ready performance obligations and management allocates transaction value to performance obligations based on the standalone selling price. The standalone selling price is the estimated price the Company would charge for the good or service with similar customers in similar circumstances. Management determined the performance obligations were obligations to make the service continuously available and will recognize revenue evenly over the service period. In July 2019 the Company entered into a Network Build and Maintenance Agreement (the “FirstNet Agreement”) with AT&T Mobility, LLC (“AT&T”) to build a portion of AT&T’s network for the First Responder Network Authority (“FirstNet”) as well as a commercial wireless network in or near the Company’s current operating area in the Southwestern United States (the “FirstNet Transaction”). The FirstNet transaction includes construction and service performance obligations. The Company allocated the transaction price of the FirstNet Agreement to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. The construction revenue is recognized when the assets are delivered and the service revenue is recognized over time as the service is rendered to the customer. The Company’s Mobility, Carrier Services, and Fixed communications contracts occasionally include promotional discounts such as free service periods or discounted products. If a contract contains a substantive termination penalty, the transaction price is allocated to the performance obligations based on a standalone selling price resulting in accelerated revenue recognition and the establishment of a contract asset that will be recognized over the life of the contract. If a contract includes a promotional discount but no substantive termination penalty the discount is recorded in the promotional period and no contract asset is established. The Company’s customers also have the option to purchase additional telecommunication services. Generally, these options are not performance obligations and are excluded from the transaction price because they do not provide the customers with a material right. The Company may charge upfront fees for activation and installation of some of its products and services. These fees are reviewed to determine if they represent a separate performance obligation. If they do not represent a separate performance obligation, the contract price associated with them is recognized over the life of the customer. If the fees represent a performance obligation they are recognized when delivered to the customer based on the standalone selling price. Sales and use and state excise taxes collected from customers that are remitted to the governmental authorities are reported on a net basis and excluded from the revenues and sales. The Company also enters into build and maintenance agreements with its customers. The agreements include construction and service performance obligations. The Company allocates the transaction price to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances. Revenue Recognition-Other Revenue Other revenue consists of renewable energy revenue and Managed Services revenue. Renewable energy revenue includes the generation of power through Power Purchase Agreements (“PPAs”) from the Company’s solar plants in India, and prior to its sale in 2018, the United States. The Company recognizes revenue at contractual PPA rates over time as electricity is generated and simultaneously consumed by the customer. Managed services revenue is generated from network, application, infrastructure, and hosting services delivered to customers. The revenue is recognized as the service is delivered to customers. Contract Assets and Liabilities The Company recognizes contract assets and liabilities on its balance sheet. Contract assets represent unbilled amounts typically resulting from retail wireless contracts with both a multiyear service period and a promotional discount. In these contracts the revenue recognized exceeds the amount billed to the customer. The current portion of the contract asset is recorded in prepayments and other current assets and the noncurrent portion is included in other assets on the Company’s balance sheet. Contract liabilities consist of advance payments and billings in excess of revenue recognized. Retail revenue for postpaid customers is generally billed one month in advance and recognized over the period that the corresponding service is rendered to customers. To the extent the service is not provided by the reporting date the amount is recognized as a contract liability. Prepaid service, including mobile voice and data services, sold to customers is recorded as deferred revenue prior to the commencement of services. The current portion of contract liabilities are recorded in advanced payments and deposits and the noncurrent portion is included in other liabilities on the Company’s balance sheets. |
Contract Acquisition Costs | Contract Acquisition Costs The Company pays sales commissions to its employees and agents for obtaining customer contracts. These costs are incremental because they would not have been incurred if the contract was not obtained. The Company recognizes an asset for these costs and subsequently amortizes the asset on a systematic basis consistent with the pattern of the transfer of the services to the customer. The amortization period, which is between 2 and 6 years , considers both the original contract period as well as anticipated contract renewals as appropriate. The amortization period also includes renewal commissions when those commissions are not commensurate with new commissions. The Company estimates contract renewals based on its actual renewals in recent periods. When the expected amortization period is one year or less the Company utilizes the practical expedient and expenses the costs as incurred. |
Leases | Leases The Company determines if an agreement is a lease at inception. Operating leases are included in right-of-use (“ROU”) assets, current portion of operating lease liabilities, and operating lease liabilities in the Company’s consolidated balance sheets. Finance leases are included in property and equipment in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The present value is calculated using the Company’s incremental borrowing rate based on the information available at the commencement date, as the Company’s leases do not contain an implicit rate. The Company utilizes assumptions based on its existing borrowing facilities and other market specific data to determine its incremental borrowing rate. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include renewal options to extend the lease. The Company includes renewal options that are reasonably certain to be exercised in the initial lease term. When determining whether a renewal option is reasonably certain to be exercised, the Company considers several factors, including the present and anticipated future needs of its customers being serviced by the asset. Lease expense is recognized on a straight-line basis over the lease term. The Company does not separate non-lease components from lease components. |
Operating Expenses | Operating Expenses Termination and access fee expenses. Construction costs. Engineering and operations expenses. Sales and marketing expenses. Sales and marketing expenses include salaries and benefits the Company pays to sales personnel, customer service expenses, sales commissions and the costs associated with the development and implementation of the Company’s promotion and marketing campaigns. General and administrative expenses. Transaction-related charges. Restructuring charges. Restructuring charges are costs incurred as a result of reorganizing the Company’s operations as a result of acquisition or disposition activities. Depreciation and amortization expenses. Impairment of goodwill or intangible assets. (Gain) loss on disposition of long-lived assets. The Company sells or disposes assets from time to time. A gain or loss is recorded by comparing the carrying amount of the assets to the proceeds received. The Company also records losses on assets held for sale if the expected sale price exceeds the carrying value of the assets. Loss on damaged assets and other Hurricane-related charges, net of insurance recovery. During September 2017, the Company’s operations and customers in the US Virgin Islands were severely impacted by Hurricanes Irma and Maria (the “Hurricanes”). Loss on damaged assets and other hurricane related charges, net of insurance recovery represents the write off of damaged assets, net of insurance recoveries and also includes additional operating expenses that were specifically incurred to address the impact of the Hurricanes. |
Accounting for Grants | Accounting for Grants The Company receives funding from the US Government and its agencies under stimulus and USF and other programs. These funding programs are generally designed to fund telecommunications operations, and infrastructure expansion into rural or underserved areas. The funding programs are evaluated to determine if they represent funding related to revenue, capital expenditures, or operating activities. Funding for revenue and operating activities are recorded as revenue or contra expense in the Company’s consolidated income statement as the services are provided. Funding for capital expenditures is recorded as a reduction to property, plant and equipment on the Company’s consolidated balance sheets and a future reduction in depreciation expense in the consolidated income statements. Government funding related to revenue and operations are recorded as operating cash inflows and grants for capital expenditures are recorded as investing cash inflows. The Company monitors government funding for grant requirements to ensure that conditions related to grants have been met and there is reasonable assurance that the Company will be able to retain the grant proceeds and to ensure that any contingencies that may arise from not meeting the conditions are appropriately recognized. See Note 10, Government Grants |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that the Company believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax- planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely- than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related authority. It is possible that the ultimate resolution of these uncertain matters may be greater or less than the amount that the Company estimated. If payment of these amounts proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period in which it is determined that the liabilities are no longer necessary. If the estimate of tax liabilities proves to be more than the ultimate assessment, a further charge to expense would result. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. The Company does not provide for United States income taxes on earnings of foreign subsidiaries as such earnings are considered to be indefinitely reinvested. The Tax Cuts and Jobs Act of 2017 (the “Tax Act” also commonly referred to as US tax reform), |
Credit Concentrations and Significant Customers | Credit Concentrations and Significant Customers |
Foreign Currency Gains and Losses | Foreign Currency Gains and Losses The Company translate the assets and liabilities of its foreign subsidiaries from their respective functional currencies, primarily the Indian Rupee and the Guyana Dollar, to US dollars at the appropriate spot rates as of the balance sheet date. Changes in the carrying values of these assets and liabilities attributable to fluctuations in spot rates are recognized in foreign currency translation adjustment, a component of accumulated other comprehensive income. Income statement accounts are translated using the monthly average exchange rates during the year. Monetary assets and liabilities denominated in a currency that is different from a reporting entity’s functional currency must first be remeasured from the applicable currency to the legal entity’s functional currency. The effect of this remeasurement process is reported in other income on the income statement. |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors pension and other postretirement benefit plans for employees of certain subsidiaries. Net periodic pension expense is recognized in the Company’s income statement. The service cost component of net periodic pension expense is presented with other employee compensation within income from operations. Other components of net periodic pension expense, such as interest cost, expected return on plan assets, and amortization of actuarial gains and losses are presented in other income. The Company recognizes a pension or other postretirement benefit plan’s funded status as either an asset or liability in its consolidated balance sheet. Actuarial gains and losses are deferred, reported as a component of other comprehensive income, and amortized through net periodic pension expense in subsequent periods. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments In accordance with the provisions of fair value accounting, a fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability, and defines fair value based upon an exit price model. The fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset and liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 assets and liabilities include money market funds, debt and equity securities and derivative contracts that are traded in an active exchange market. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes corporate obligations and non-exchange traded derivative contracts. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments and intangible assets that have been impaired whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Assets and liabilities of the Company measured at fair value on a recurring basis as of December 31, 2020 and 2019 are summarized as follows: December 31, 2020 Significant Other Quoted Prices in Observable Unobservable Active Markets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Certificates of deposit $ — $ 380 $ — $ 380 Money market funds 2,785 — — 2,785 Other investments — — 13,357 13,357 Interest rate swap — (157) — (157) Total assets and liabilities measured at fair value $ 2,785 $ 223 $ 13,357 $ 16,365 December 31, 2019 Significant Other Quoted Prices in Observable Unobservable Active Markets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Certificates of deposit $ — $ 380 $ — $ 380 Money market funds 2,329 — — 2,329 Short term investments 416 — — 416 Other investments — — 12,700 12,700 Interest rate swap — (56) — (56) Total assets and liabilities measured at fair value $ 2,745 $ 324 $ 12,700 $ 15,769 Certificates of Deposit As of December 31, 2020 and December 31, 2019 this asset class consisted of a time deposit at a financial institution denominated in US dollars. The asset class is classified within Level 2 of the fair value hierarchy because the fair value was based on observable market data. Money Market Funds As of December 31, 2020 and December 31, 2019, this asset class consisted of a money market portfolio that comprises Federal government and US Treasury securities. The asset class is classified within Level 1 of the fair value hierarchy because its underlying investments are valued using quoted market prices in active markets for identical assets. Short Term Investments and Commercial Paper As of December 31, 2020 and December 31, 2019, these asset classes consisted of short term foreign and US corporate bonds, equity securities, and commercial paper. Corporate bonds and commercial paper are classified within Level 2 of the fair value hierarchy because the fair value is based on observable market data. Equity securities are classified within Level 1 because fair value is based on quoted market prices in active markets for identical assets. The Company held equity securities with a fair value of $0.2 million as of December 31, 2019. Net income for the year ended December 31, 2020 and 2019 includes $0.2. million and $0.1 million of losses, respectively, on these securities. Other Investments In the first quarter of 2019, the Company made an investment in an early-stage venture through the acquisition of a convertible debt instrument. The Company elected to fair value the investment upon acquisition. At December 31, 2020, the fair value of the investment was $11.0 million. During the years ended December 31, 2020 and 2019, the Company recorded In the third quarter of 2019, the Company made a $14.4 million investment in a renewable energy partnership, as a tax equity investor. The Company received an investment tax credit of $12.0 million in the year ended December 31, 2020 and will receive future cash distributions from the partnership’s operations. The Company elected the deferral method to account for the credit and elected the fair value option to account for the equity investment. The Company’s investment had a fair value of $2.3 million at December 31, 2020, and $2.5 million at December 31, 2019. The asset is classified within Level 3 of the fair value hierarchy. The Company used the income approach to fair value the investment and the inputs consisted of a discount rate and future cash flows calculated based on the investment attributes. The Company also holds investments in equity securities consisting of non-controlling investments in privately held companies. These investments, over which the Company does not have the ability to exercise significant influence, are without readily determinable fair values. The investments are measured at cost, less any impairment, adjusted for observable price changes of similar investments of the same issuer. Fair value is not estimated for these investments if there are no identified events or changes in circumstances that may have an effect on the fair value of the investment. The carrying value of the investments was $1.3 million at December 31, 2020 and $2.1 million at December 31, 2019. During the year ended December 31, 2020 the Company recorded a loss of $0.8 million as the result of an observable price change in the investments. These investments are included with other assets on the consolidated balance sheets. Equity Method Investments In the first quarter of 2020, the Company increased its ownership in one investment of a privately held company to approximately 24% of the outstanding voting equity through an additional $2.8 million investment. With this investment, the Company obtained the ability to exercise significant influence over the investee and began accounting for the investment under the equity method of accounting including the recording of its share of the investee’s earnings or losses. The carrying value of the investment was $17.9 million and $15.5 million at December 31, 2020 and December 31, 2019, respectively. The value increased $2.4 million from the December 31, 2019 balance due to an additional investment of $2.8 million, and currency gains of $1.6 million offset partially by $2.0 million of the Company’s share of investee losses. The investment is included with other assets on the consolidated balance sheets. Other Fair Value Disclosures The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate their fair values because of the relatively short-term maturities of these financial instruments. The fair value of the interest rate swap is measured using Level 2 inputs. The fair value of long-term debt is estimated using Level 2 inputs. At December 31, 2020, the fair value of long-term debt, including the current portion, was $73.3 million and its book value was $72.8 million. At December 31, 2019, the fair value of long-term debt, including the current portion, was $86.9 million and its book value was $86.4 million. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income per share is computed by dividing net income attributable to the Company’s stockholders by the weighted-average number of common shares outstanding during the period and does not include any other potentially dilutive securities. Diluted net income per share gives effect to all potentially dilutive securities using the treasury stock method. The reconciliation from basic to diluted weighted average shares of Common Stock outstanding is as follows (in thousands): Year ended December 31, 2020 2019 2018 Basic weighted-average shares of common stock outstanding 15,923 15,983 15,988 Stock options — — 54 Diluted weighted-average shares of common stock outstanding 15,923 15,983 16,042 For the year ended December 31, 2020, 2019, and 2018 the calculation of basic and diluted weighted average shares of Common Stock outstanding does not include 5,000 shares, 8,800 shares and 5,000 shares, respectively, relating to stock options as the effects of those options were anti-dilutive. |
Stock-Based Compensation | Stock-Based Compensation The Company applies the fair value recognition provisions of the authoritative guidance for the accounting for stock-based compensation and is expensing the fair value of the grants of options to purchase Common Stock over their vesting period of four years . Relating to grants of options, the Company recognized $0.1 million of non-cash, share-based compensation expense during 2018. See Note 11 for assumptions used to calculate the fair value of the options granted. The Company also issued 116,404 restricted shares of Common Stock in 2020; 108,278 restricted shares of Common Stock in 2019; and 111,474 restricted shares of Common Stock in 2018. These shares issued to employees are being charged to income based upon their fair values over their vesting period of four years . Shares issued to Directors are being charged to income based upon their fair values upon their grant. The Company accounts for forfeitures as they occur. Non-cash equity-based compensation expense, related to the vesting of restricted shares issued was $5.6 million, $6.4 million and $6.1 million in 2020, 2019, and 2018, respectively. In connection with certain acquisitions, the Company issued shares of the acquired company to its local management and recorded $0.3 million, $0.5 million and $0.2 million of stock based compensation during 2020, 2019, and 2018, respectively. Stock-based compensation expense is recognized within general and administrative expenses within the consolidated income statements. |
Business combinations | Business Combinations The Company accounts for business combinations using the acquisition method of accounting, under which the purchase price of the acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. Contingent consideration obligations that are elements of the consideration transferred are recognized as of the acquisition date as part of the fair value transferred in exchange for the acquired business. Acquisition-related costs incurred in connection with a business combination are expensed as incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), and subsequently issued related updates, (collectively known as ASC 606), which provides a single, comprehensive revenue recognition model for all contracts with customers. The revenue standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this standard on January 1, 2018. Refer to Note 3 In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company adopted this standard on January 1, 2018 . Upon adoption the Company held $20.1 million of equity investments that did not have readily determinable fair values. As a result these investments are measured at cost less impairments, adjusted for observable price changes of similar investments of the same issuer. Upon adoption, the Company held $0.6 million of equity investments with readily determinable fair values and reclassified $0.2 million of unrealized gains on this investment to retained earnings. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” and subsequently issued related updates,” (“ASU 2016-02”) which provide comprehensive lease accounting guidance. The standard requires entities to recognize lease assets and liabilities on the balance sheet as well as disclosure of key information about leasing arrangements. ASU 2016-02 became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company adopted ASC 2016-02 on January 1, 2019 utilizing the optional transition method with a cumulative adjustment on the date of adoption and not adjusting prior periods. Refer to Note 4 of the Condensed Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” (“ASU 2016-15”) which provides further clarification on eight cash flow classification issues. The Company adopted this standard on January 1, 2018. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” (“ASU 2016-18”). The amendments in ASU 2016-18 are intended to reduce diversity in practice related to the classification and presentation of changes in restricted cash or restricted cash equivalents on the statement of cash flows. The amendments in ASU 2016-18 require that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this standard on January 1, 2018. In October 2016 the FASB issued ASU 2016-16, “Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory.” The new standard eliminates all intra-entity sales of assets other than inventory, the exception under current standards that permits the tax effects of intra-entity asset transfers to be deferred until the transferred asset is sold to a third party or otherwise recovered through use. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. The new standard was effective for the Company on January 1, 2018. There was not a material impact to the Company’s Consolidated Financial Statements upon adoption. In March 2017, the FASB issued ASU 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The new guidance requires the service cost component to be presented separately from the other components of net benefit costs. Service cost will be presented with other employee compensation cost within income from operations. The other components of net benefit cost, such as interest cost, expected return on plan assets, amortization of prior service cost and gains or losses are required to be presented in other income. The Company elected the practical expedient allowing the use of the amounts disclosed for the various components of net benefit cost in the pension and other postretirement benefit plans footnote as the basis for the retrospective application. The Company adopted this standard on January 1, 2018. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities,” (“ASU 2017-12”). The standard: (a) expands and refines hedge accounting for both financial and non-financial risk components, (b) aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and (c) includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted ASU 2017-12 on January 1, 2019. There was not a material impact to the Company’s Consolidated Financial Statements upon adoption. In February 2018, the FASB issued ASU 2018-02 “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The standard gives entities the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income that were impacted by the Tax Act. The guidance is effective for all entities for fiscal years beginning after December 31, 2018 The Company adopted this standard on January 1, 2018 and applied it to the period of adoption. The impact of the adoption results in a valuation In August 2018, the FASB issued ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” (“ASU 2018-15”). This standard requires entities that are customers in cloud computing arrangements to defer implementation costs if they would be capitalized by the entity in software licensing arrangements under the internal-use software guidance. The guidance may be applied retrospectively or prospectively to implementation costs incurred after the date of adoption. ASU 2018-15 is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted. The Company prospectively adopted this standard in the fourth quarter of 2018. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” (“ASU 2016-13”). ASU 2016-13 requires entities to use a new forward-looking, expected loss model to estimate credit losses. It also requires additional disclosure relating to the credit quality of trade and other receivables, including information relating to management’s estimate of credit allowances. The Company adopted ASU 2016-13 using the modified retrospective approach on its January 1, 2020 effective date. |
ORGANIZATION AND BUSINESS OPE_2
ORGANIZATION AND BUSINESS OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND BUSINESS OPERATIONS | |
Schedule of the operating activities of the Company's principal subsidiaries, the segments in which the Company reports its revenue and markets served | Segment Services Markets Tradenames International Telecom Mobility Bermuda, Guyana, US Virgin Islands One, GTT+, Viya Fixed Bermuda, Cayman Islands, Guyana, US Virgin Islands One, Logic, GTT+, Viya Carrier Services Bermuda, Guyana, US Virgin Islands One, GTT+, Viya Managed Services Bermuda, Cayman Islands, US Virgin Islands, Guyana Fireminds, One, Logic, GTT+, Viya US Telecom Mobility United States (rural markets) Choice, Choice NTUA Wireless, Geoverse Fixed United States Commnet, Choice, Choice NTUA Wireless, Deploycom Carrier Services United States Commnet, Essextel Managed Services United States Choice Renewable Energy Solar India Vibrant Energy |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of changes in accumulated other comprehensive income (loss), by component | Changes in accumulated other comprehensive income (loss), by component, were as follows (in thousands): Projected Pension and Postretirement Benefit Translation Obligations Adjustment Other Total Balance at December 31, 2017 $ 3,127 $ 355 $ 264 $ 3,746 Unrecognized actuarial gain (loss), net of tax of $0.6 million (840) — — (840) Foreign currency translation adjustment — (4,390) — (4,390) Adoption of ASU 2016-01 — — (203) (203) Interest rate swap — — 78 78 Balance at December 31, 2018 $ 2,287 $ (4,035) $ 139 $ (1,609) Unrecognized actuarial gain (loss), net of tax of $0.1 million (445) — — (445) Foreign currency translation adjustment — (1,041) — (1,041) Interest rate swap — — (187) (187) Balance at December 31, 2019 1,842 (5,076) (48) (3,282) Unrecognized actuarial gain (loss), net of tax of $0.1 million (2,412) — — (2,412) Foreign currency translation adjustment — 37 — 37 Interest rate swap — — (101) (101) Reclassification of foreign currency losses on assets held for sale — — 6,036 6,036 Balance at December 31, 2020 $ (570) $ (5,039) $ 5,887 $ 278 |
Schedule of assets and liabilities of the Company measured at fair value on a recurring basis | December 31, 2020 Significant Other Quoted Prices in Observable Unobservable Active Markets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Certificates of deposit $ — $ 380 $ — $ 380 Money market funds 2,785 — — 2,785 Other investments — — 13,357 13,357 Interest rate swap — (157) — (157) Total assets and liabilities measured at fair value $ 2,785 $ 223 $ 13,357 $ 16,365 December 31, 2019 Significant Other Quoted Prices in Observable Unobservable Active Markets Inputs Inputs Description (Level 1) (Level 2) (Level 3) Total Certificates of deposit $ — $ 380 $ — $ 380 Money market funds 2,329 — — 2,329 Short term investments 416 — — 416 Other investments — — 12,700 12,700 Interest rate swap — (56) — (56) Total assets and liabilities measured at fair value $ 2,745 $ 324 $ 12,700 $ 15,769 |
Schedule of reconciliation from basic to diluted weighted average common shares outstanding | The reconciliation from basic to diluted weighted average shares of Common Stock outstanding is as follows (in thousands): Year ended December 31, 2020 2019 2018 Basic weighted-average shares of common stock outstanding 15,923 15,983 15,988 Stock options — — 54 Diluted weighted-average shares of common stock outstanding 15,923 15,983 16,042 |
REVENUE RECOGNITION AND RECEI_2
REVENUE RECOGNITION AND RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REVENUE RECOGNITION AND RECEIVABLES | |
Summary of contracts asset and liabilities | Contract assets and liabilities consisted of the following (amounts in thousands): December 31, 2020 December 31, 2019 $ Change % Change Contract asset – current $ 2,478 $ 2,413 $ 65 3 % Contract asset – noncurrent 910 905 5 1 % Contract liability – current (18,544) (15,044) (3,500) (23) % Contract liability – noncurrent (2,193) (5,450) 3,257 60 % Net contract liability $ (17,349) $ (17,176) $ (173) (1) % |
Schedule of activity in allowances for credit losses | Year ended December 31, 2020 Balance at January 1, 2020 $ 12,724 Current period provision for expected losses 5,010 Write-offs charged against the allowance (6,351) Recoveries collected 738 Balance at December 31, 2020 $ 12,121 |
Schedule of accounts receivable | 2020 2019 Retail $ 22,178 $ 13,659 Wholesale - current 35,322 34,969 Wholesale - long- term 9,614 — Accounts receivable 67,114 48,628 Less: allowance for doubtful accounts (12,121) (12,724) Total accounts receivable, net $ 54,993 $ 35,904 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
Summary of components of lease expense | The components of lease expense were as follows (in thousands): December 31, 2020 December 31, 2019 Operating lease cost: Operating lease cost $ 16,409 $ 15,194 Short-term lease cost 2,712 3,426 Variable lease cost 4,059 2,803 Total operating lease cost $ 23,180 $ 21,423 Finance lease cost: Amortization of right-of-use asset $ 2,181 $ 2,318 Variable costs 852 964 Total finance lease cost $ 3,033 $ 3,282 |
Summary of weighted-average remaining lease term and discount rate | December 31, 2020 December 31, 2019 Weighted-average remaining lease term Operating leases 5.9 years 6.5 years Financing leases 10.9 years 11.7 years Weighted-average discount rate Operating leases 5.0% 5.0% Financing leases 3.3% n/a |
Summary of maturities of lease liabilities | Maturities of lease liabilities as of December 31, 2020 were as follows (in thousands): Operating Leases 2021 $ 15,211 2022 14,535 2023 12,132 2024 10,844 2025 7,816 Thereafter 13,094 Total lease payments 73,632 Less imputed interest (10,179) Total $ 63,453 Maturities of lease liabilities as of December 31, 2019 were as follows (in thousands): Operating Leases 2020 $ 14,526 2021 13,714 2022 12,787 2023 10,713 2024 9,671 Thereafter 18,355 Total lease payments 79,766 Less imputed interest (12,195) Total $ 67,571 |
DISPOSITIONS AND PLATFORM INV_2
DISPOSITIONS AND PLATFORM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
U.S. Solar Operations | |
Acquisitions and Dispositions | |
Schedule of assets and liabilities transferred | Consideration Received $ 65,286 Assets and liabilities disposed Cash 3,049 Accounts receivable 1,248 Prepayments and other current assets 801 Property, plant and equipment 94,678 Restricted cash 8,407 Other assets 38 Current portion of long-term debt (6,992) Accounts payable and accrued liabilities (938) Accrued taxes 586 Long-term debt, excluding current portion (48,038) Net assets disposed 52,839 Consideration less net assets disposed 12,447 Transaction costs (2,133) Gain $ 10,314 |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FIXED ASSETS: | |
Schedule of property, plant and equipment | As of December 31, 2020 and 2019, property, plant and equipment consisted of the following (in thousands): Useful Life (in Years) 2020 2019 Telecommunications equipment and towers 5 -15 $ 1,012,457 $ 979,028 Solar assets 20-23 - 40,043 Office and computer equipment 3 -10 87,427 82,630 Buildings 15-39 52,048 48,565 Transportation vehicles 3 -10 13,730 13,424 Leasehold improvements Shorter 16,709 2,316 Land — 8,180 15,503 Furniture and fixtures 5 -10 11,320 8,866 Total property, plant and equipment 1,201,871 1,190,375 Construction in progress 50,909 47,180 Total property, plant and equipment 1,252,780 1,237,555 Less: Accumulated depreciation (716,318) (631,974) Net fixed assets $ 536,462 $ 605,581 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND INTANGIBLE ASSETS | |
Schedule of changes in the carrying amount of goodwill, by operating segment | The table below discloses goodwill recorded in each of the Company’s segments and accumulated impairment changes (in thousands): International US Renewable Telecom Telecom Energy Consolidated Balance at December 31, 2018 $ 24,326 $ 35,268 $ 3,279 $ 63,970 Impairment — — (3,279) (3,279) Balance at December 31, 2019 24,326 35,268 — 60,691 Impairment — — — — Balance at December 31, 2020 $ 24,326 $ 35,268 $ — $ 60,691 International US Renewable Telecom Telecom Energy Consolidated Balance at December 31, 2019 Gross $ 24,326 $ 35,268 $ 3,279 $ 63,970 Accumulated Impairment — — (3,279) (3,279) Net 24,326 35,268 — 60,691 Balance at December 31, 2020 Gross 24,326 35,268 — 60,691 Accumulated Impairment — — — — Net $ 24,326 $ 35,268 $ — $ 60,691 |
Schedule of changes in the carrying amount of the Company's telecommunications licenses, by operating segment | The changes in the carrying amount of the Company’s telecommunications licenses, by operating segment, were as follows (in thousands): International US Telecom Telecom Consolidated Balance at December 31, 2018 $ 23,347 $ 70,339 $ 93,686 Acquired licenses — — — Dispositions — — — Balance at December 31, 2019 $ 23,347 $ 70,339 $ 93,686 Acquired licenses 200 20,197 20,397 Dispositions — — — Transfers 11,251 (11,251) — Balance at December 31, 2020 $ 34,798 $ 79,285 $ 114,083 |
Schedule of future amortization of customer relationships, in International Telcom segment | Future amortization of customer relationships, in its International Telecom segment, is as follows (in thousands): Future Amortization 2021 $ 1,300 2022 1,143 2023 827 2024 576 2025 576 Thereafter 1,491 Total $ 5,913 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EQUITY | |
Schedule of shares repurchased | Shares Aggregate Cost Average Year ended December 31, Repurchased (in thousands) Repurchase Price 2020 129,273 $ 6,589 $ 50.97 2019 3,104 162 52.37 2018 30,427 1,576 51.82 |
Schedule of repurchases of shares from employees to satisfy tax withholding and stock exercise obligations | Aggregate Shares Cost Average Year ended December 31, Repurchased (in thousands) Repurchase Price 2020 32,227 $ 1,733 $ 53.78 2019 42,703 2,419 56.65 2018 141,180 10,859 76.76 |
Summary of stock option activity | Year Ended December 31, 2020 Weighted Average Remaining Number of Weighted Avg. Contractual Aggregate Options Exercise Price Term (Years) Intrinsic Value Outstanding at January 1, 2019 15,000 $ 49.34 Granted — — Forfeited — — Expired — — Exercised — — Outstanding at December 31, 2020 15,000 49.34 2.2 $ 34,600 Vested and expected to vest at December 31, 2020 15,000 49.34 2.2 $ 34,600 Exercisable at December 31, 2020 15,000 49.34 2.2 $ 34,600 Year Ended December 31, 2019 Weighted Average Remaining Number of Weighted Avg. Contractual Aggregate Options Exercise Price Term (Years) Intrinsic Value Outstanding at January 1, 2018 42,000 $ 48.61 Granted — — Forfeited (7,500) 52.97 Expired (2,500) 52.97 Exercised (17,000) 45.39 Outstanding at December 31, 2019 15,000 49.34 3.2 $ 170,900 Vested and expected to vest at December 31, 2019 15,000 49.34 3.2 $ 170,900 |
Summary of information relating to options granted and exercised | The following table summarizes information relating to options granted and exercised during the years ended December 31, 2020, 2019 and 2018 (in thousands, except fair value of options granted data): 2020 2019 2018 Aggregate intrinsic value of options exercised $ — $ 229 $ 5,927 Cash proceeds received upon exercise of options — — 72 |
Summary of restricted stock activity | The following table summarizes restricted stock activity during the year ended December 31, 2020: Weighted Avg. Shares Fair Value Unvested as of January 1, 2020 204,146 $ 60.13 Granted 116,404 50.45 Forfeited (3,323) 59.99 Vested and issued (93,604) 61.75 Unvested as of December 31, 2020 223,623 $ 54.42 The following table summarizes restricted stock activity during the year ended December 31, 2019: Weighted Avg. Shares Fair Value Unvested as of January 1, 2019 200,653 $ 65.21 Granted 108,278 54.68 Forfeited (18,579) 57.04 Vested and issued (86,206) 65.77 Unvested as of December 31, 2019 204,146 $ 60.13 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of components of income before income taxes | The components of income before income taxes for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands): 2020 2019 2018 Domestic $ (17,689) $ (15,661) $ 28,917 Foreign 17,782 21,733 24,825 Total $ 93 $ 6,072 $ 53,742 |
Schedule of reconciliation from the tax computed at statutory income tax rates to the Company's income tax expense | The following is a reconciliation from the tax computed at statutory income tax rates to the Company’s income tax expense for the years ended December 31, 2020, 2019, and 2018 (in thousands): 2020 2019 2018 Tax computed at statutory US federal income tax rates $ 20 $ 1,275 $ 11,286 Non-controlling interest (851) (648) (1,114) Foreign tax rate differential 1,866 (1,769) (2,662) Over (under) provided in prior periods (520) (244) (4,683) Nondeductible expenses 1,504 3,781 1,610 Benefit Attributable CARES Act (3,064) — — Capitalized transactions costs — 19 62 Change in tax reserves 2,148 3,883 10,657 State Taxes, net of federal benefit (409) (429) 1,674 Change in valuation allowance 33 (35) 1,539 Investment Tax Credit 84 (1,215) — Refund Claim for Domestic Production Deduction — — 235 Tax Cuts and Jobs Act of 2017 — — (148) Capital loss — — 15 Deferred income tax revaluation (10) (513) — Other, net — — 399 Total Income Tax Expense $ 801 $ 4,105 $ 18,870 |
Schedule of components of income tax expense (benefit) | The components of income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands): \ 2020 2019 2018 Current: United States—Federal $ 504 $ (1,559) $ 24,546 United States—State 3 (336) 4,506 Foreign 7,611 8,192 13,060 Total current income tax expense $ 8,118 $ 6,297 $ 42,112 Deferred: United States—Federal $ (6,527) $ (1,805) $ (17,947) United States—State (413) (93) (2,832) Foreign (377) (294) (2,463) Total deferred income tax expense (benefit) $ (7,317) $ (2,192) $ (23,242) Consolidated: United States—Federal $ (6,023) $ (3,364) $ 6,599 United States—State (410) (429) 1,674 Foreign 7,234 7,898 10,597 Total income tax expense (benefit) $ 801 $ 4,105 $ 18,870 |
Schedule of significant components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities are as follows as of December 31, 2020 and 2019 (in thousands): 2020 2019 Deferred tax assets: Accounts receivable and inventory allowances $ 1,972 $ 1,603 Basis in investments 7,512 6,937 Accrued expenses 4,701 5,923 Deferred revenue 3,141 2,864 Employee benefits 4,363 3,559 Other, net 744 — Net operating losses 26,582 40,491 Tax Credits 1,997 2,726 Operating lease liability 14,648 15,869 Total deferred tax asset 65,660 79,972 Deferred tax liabilities: Acquired intangible assets, property and equipment 26,736 30,419 Right-of-use asset 14,594 15,869 Prepaid expense 209 181 Other, net — 195 Total deferred tax liabilities 41,539 46,664 Valuation allowance (31,014) (39,406) Net deferred tax liabilities $ (6,893) $ (6,098) |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities are reflected in the accompanying consolidated balance sheets as follows (in thousands): 2020 2019 Deferred tax assets: Long term $ 3,782 $ 2,582 Total deferred tax asset $ 3,782 $ 2,582 Deferred tax liabilities: Long term $ (10,675) $ (8,680) Total deferred tax liabilities $ (10,675) $ (8,680) Net deferred tax liabilities $ (6,893) $ (6,098) |
Schedule of activity related to unrecognized tax benefits | The following shows the activity related to unrecognized tax benefits (not including interest and penalty) during the three years ended December 31, 2020 (in thousands): Gross unrecognized uncertain tax benefits at December 31, 2017 20,961 Increase in unrecognized tax benefits taken during a prior period 7,293 Increase in unrecognized tax benefits taken during the current period 3,408 Lapse in statute of limitations (1,430) Settlements — Gross unrecognized uncertain tax benefits at December 31, 2018 30,232 Increase in unrecognized tax benefits taken during a prior period — Increase in unrecognized tax benefits taken during the current period 3,383 Lapse in statute of limitations (933) Settlements — Gross unrecognized uncertain tax benefits at December 31, 2019 $ 32,682 Increase in unrecognized tax benefits taken during a prior period — Increase in unrecognized tax benefits taken during the current period 2,964 Lapse in statute of limitations (1,768) Settlements — Gross unrecognized uncertain tax benefits at December 31, 2020 $ 33,878 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RETIREMENT PLANS | |
Schedule of weighted-average rates assumed in the actuarial calculations for the pension plan and other postretirement benefit plans | 2020 2019 2018 Discount Rate – Pension Benefit Obligation 2.6 % 4.2 % 4.7 % Discount Rate – Pension Benefit Cost 3.5 % 4.5 % 4.3 % Discount Rate – Postretirement Benefit Obligation 2.5 % 3.5 % 4.5 % Discount Rate – Postretirement Benefit Cost 3.5 % 4.5 % 3.9 % Annual salary increase n/a 6.5 % 6.5 % Expected long-term return on plan assets 5.1 % 6.1 % 6.1 % |
Schedule of changes during the year in the projected benefit obligations and in the fair value of plan assets | 2020 2019 Pension Benefits Postretirement Benefits Pension Benefits Postretirement Benefits Projected benefit obligations: Balance at beginning of year: $ 81,977 $ 4,899 $ 76,900 $ 4,012 Service cost 439 139 1,709 126 Interest cost 2,585 163 3,472 182 Benefits and settlements paid (4,791) (450) (5,738) (354) Actuarial (gain) loss 8,651 759 5,739 933 Settlement (89) — (105) — Balance at end of year $ 88,772 $ 5,510 $ 81,977 $ 4,899 Plan net assets: Balance at beginning of year: $ 83,350 $ — $ 77,530 $ — Actual return on plan assets 10,398 — 10,678 — Company contributions 958 450 838 354 Benefits and settlements paid (5,354) (450) (5,696) (354) Balance at end of year $ 89,352 $ — $ 83,350 $ — Over/ (Under) funded status of plan $ 580 $ (5,510) $ 1,373 $ (4,899) |
Schedule of funded status of the Company's pension and other retirement benefit plans | 2020 2019 GTT Pension Benefit Viya Pension Benefit Postretirement Benefits GTT Pension Benefit Viya Pension Benefit Postretirement Benefits Projected benefit obligation $ 15,609 $ 73,163 $ 5,510 $ 15,594 $ 66,383 $ 4,899 Plan Net Assets 15,609 73,743 — 15,054 68,296 — Over/ (Under) funded status of plan $ — $ 580 $ (5,510) $ (540) $ 1,913 $ (4,899) |
Schedule of fair values for the pension plan's net assets, by asset category | The fair values for the pension plan’s net assets, by asset category, at December 31, 2020 are as follows (in thousands): Asset Category Total Level 1 Level 2 Level 3 Cash, cash equivalents, money markets and other $ 5,037 $ 5,037 $ — $ — Common stock 27,785 24,781 3,004 — Mutual funds - fixed income 9,494 9,494 — — Mutual funds - equities 8,278 8,278 — — Fixed income securities 37,225 — 37,225 — Other 1,533 1,533 — — Total $ 89,352 $ 49,123 $ 40,229 $ — The fair values for the pension plan’s net assets, by asset category, at December 31, 2019 are as follows (in thousands): Asset Category Total Level 1 Level 2 Level 3 Cash, cash equivalents, money markets and other $ 4,982 $ 4,982 $ — $ — Common stock 26,702 22,451 4,251 — Mutual funds - fixed income 12,970 12,970 — — Mutual funds - equities 10,921 10,921 — — Fixed income securities 26,307 1,178 25,129 — Other 1,468 1,031 — 437 Total $ 83,350 $ 53,533 $ 29,380 $ 437 |
Schedule of weighted-average asset allocations, by asset category | 2020 2019 Cash, cash equivalents, money markets and other 6 % 6 % Common stock 31 32 Mutual funds - fixed income 11 16 Mutual funds - equities 9 13 Fixed income securities 41 32 Other 2 1 Total 100 % 100 % |
Schedule of amounts recognized on the Company's consolidated balance sheets | Amounts recognized on the Company’s consolidated balance sheets consist of (in thousands): As of December 31, 2020 2019 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Accrued and current liabilities $ — $ 381 $ — $ 340 Other Liabilities — 5,129 540 4,559 Other Assets 580 — 1,913 — Accumulated other comprehensive income, net of tax (158) (411) 1,484 359 |
Schedule of amounts recognized in accumulated other comprehensive income | Amounts recognized in accumulated other comprehensive income consist of (in thousands): As of December 31, 2020 2019 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Unrecognized net actuarial gain (loss) $ (1,159) $ (411) $ 540 $ 359 Accumulated other comprehensive income, pre-tax (1,159) (411) 540 359 Accumulated other comprehensive income (loss), net of tax (158) (411) 1,484 359 |
Schedule of components of the plan's net periodic pension cost | Components of the plan’s net periodic pension cost are as follows for the years ended December 31, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 Pension benefits Postretirement benefits Pension benefits Postretirement benefits Pension benefits Postretirement benefits Operating expense Service cost $ 439 $ 139 $ 1,709 $ 126 $ 1,794 $ 147 Non-operating expense Interest cost 2,585 163 3,472 182 3,279 161 Expected return on plan assets (3,060) — (4,571) — (4,835) — Amortization of actuarial (gain) loss — (11) 29 (58) 121 (67) Settlement 89 — (35) — — — Net periodic pension cost $ 53 $ 291 $ 604 $ 250 $ 359 $ 241 |
Schedule of estimated benefits | The following estimated benefits, which reflect expected future service, as appropriate, are expected to be paid over the next 10 years as indicated below (in thousands): Pension Postretirement Fiscal Year Benefits Benefits 2021 $ 19,691 $ 386 2022 3,730 359 2023 3,703 276 2024 4,048 319 2025 3,706 356 2026-2030 19,058 1,679 Total $ 53,936 $ 3,375 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of contractual commitments | Future minimum payments required under these commitments are as follows at December 31, 2020 (in thousands): 2021 $ 22,771 2022 16,065 2023 11,463 2024 10,416 2025 1,143 Thereafter 1,838 Total obligations $ 63,696 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT REPORTING | |
Schedule of information for each operating segment | The following tables provide information for each operating segment (in thousands): For the Year Ended December 31, 2020 International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated Revenue Communication Services Mobility $ 83,136 $ 9,626 $ — $ — $ 92,762 Fixed 230,375 22,269 — — 252,644 Carrier Services 7,120 79,448 — — 86,568 Other 1,535 — — — 1,535 Total Communication Services Revenue 322,166 111,343 — — 433,509 Other Renewable Energy — — 4,555 — 4,555 Managed Services 6,467 — — — 6,467 Construction — 10,913 — — 10,913 Total Other Revenue 6,467 10,913 4,555 — 21,935 Total Revenue 328,633 122,256 4,555 — 455,444 Depreciation and amortization 56,284 23,325 2,216 6,486 88,311 Non-cash stock-based compensation 49 15 262 5,586 5,912 Operating income (loss) 58,064 7,388 (23,749) (32,523) 9,180 For the Year Ended December 31, 2019 International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated Revenue Communication Services Mobility $ 84,560 $ 10,532 $ — $ — $ 95,092 Fixed 224,534 14,211 — — 238,745 Carrier Services 9,070 83,906 — — 92,976 Other 1,295 — — — 1,295 Total Communication Services Revenue 319,459 108,649 — — 428,108 Other Renewable Energy — — 5,534 — 5,534 Managed Services 5,080 — — 5,080 Total Other Revenue 5,080 — 5,534 — 10,614 Total Revenue 324,539 108,649 5,534 — 438,722 Depreciation and amortization 55,993 23,119 3,305 6,708 89,125 Non-cash stock-based compensation 405 — 87 5,892 6,384 Operating income (loss) 46,921 8,064 (7,243) (34,365) 13,377 For the Year Ended December 31, 2018 International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated Revenue Communication Services Mobility $ 85,152 $ 11,759 $ — $ — $ 96,911 Fixed 213,765 7,860 — — 221,625 Carrier Services 8,846 95,861 — — 104,707 Other 2,080 — — — 2,080 Total Communication Services Revenue 309,843 115,480 — — 425,323 Other Renewable Energy — — 22,158 — 22,158 Managed Services 3,726 — — — 3,726 Total Other Revenue 3,726 — 22,158 — 25,884 Total Revenue 313,569 115,480 22,158 — 451,207 Depreciation and amortization 48,889 24,615 6,589 5,626 85,719 Non-cash stock-based compensation 88 — 105 6,227 6,420 Operating income (loss) 45,022 36,813 13,440 (34,252) 61,023 International US Renewable Corporate and Telecom Telecom Energy Other (1) Consolidated December 31, 2020 Cash, Cash equivalents, and Investments $ 45,848 $ 26,921 $ 4,311 $ 26,845 $ 103,925 Total current assets 107,315 65,806 39,057 27,887 240,065 Fixed assets, net 449,888 73,717 — 12,857 536,462 Goodwill 25,421 35,270 — — 60,691 Total assets 642,834 265,797 39,045 136,035 1,083,711 Total current liabilities 80,875 43,200 1,038 22,815 147,928 Total debt 72,823 — — — 72,823 December 31, 2019 Cash, Cash equivalents, and Investments $ 43,125 $ 38,240 $ 25,054 $ 55,284 $ 161,703 Total current assets 91,497 54,207 27,534 55,485 228,723 Fixed assets, net 466,523 69,184 48,421 21,453 605,581 Goodwill 25,421 35,270 — — 60,691 Total assets 647,228 222,356 76,723 184,419 1,130,726 Total current liabilities 77,644 24,905 2,745 14,375 119,669 Total debt 86,426 — — — 86,426 Capital Expenditures International US Renewable Corporate and Year ended December 31, Telecom Telecom Energy Other (1) Consolidated 2020 $ 38,895 $ 29,883 $ 2,932 $ 3,613 $ 75,323 2019 42,029 17,490 6,448 6,758 72,725 (1) Reconciling items refer to corporate overhead expenses and consolidating adjustments. |
Schedule of revenues and long lived assets by geographic location | The table below identifies the Company’s revenues and long-lived assets by geographic location. The Company attributes revenue to geographic location based on location of the customer (in thousands): 2020 2019 2018 Long-Lived Long-Lived Long-Lived Revenues Assets Revenues Assets Revenues Assets US $ 122,256 $ 308,138 $ 123,508 $ 297,084 $ 132,288 $ 234,514 Guyana 103,071 141,487 105,290 145,079 102,056 151,084 US Virgin Islands 90,368 230,630 83,795 235,384 79,785 216,173 Bermuda 103,471 116,346 104,760 128,208 103,281 137,992 Other Foreign Countries 36,278 47,045 21,369 96,247 33,797 91,775 $ 455,444 $ 843,647 $ 438,722 $ 902,002 $ 451,207 $ 831,538 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | |
Summary of the Company's quarterly results of operations | Following is a summary of the Company’s quarterly results of operations for the years ended December 31, 2020 and 2019 (in thousands): 2020 Consolidated for the Three Months Ended March 31 June 30 September 30 December 31 Total revenue $ 110,905 $ 109,098 $ 111,739 $ 123,702 Operating expenses 103,606 102,074 102,182 138,402 Income (loss) from operations 7,299 7,024 9,557 (14,700) Other income (expense), net (3,814) (918) (3,274) (1,081) Income (loss) from continuing operations before income taxes 3,485 6,106 6,283 (15,781) Income taxes 1,109 (2,258) 92 1,858 Net income (loss) 2,376 8,364 6,191 (17,639) Net income attributable to non-controlling interests, net of tax (3,390) (3,618) (3,530) (2,876) Net income (loss) attributable to ATN International, Inc. stockholders $ (1,014) $ 4,746 $ 2,661 $ (20,515) Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders Basic $ (0.06) $ 0.30 $ 0.17 $ (1.30) Diluted $ (0.06) $ 0.30 $ 0.17 $ (1.30) 2019 Consolidated for the Three Months Ended March 31 June 30 September 30 December 31 Total revenue $ 103,300 $ 107,721 $ 115,616 $ 112,085 Operating expenses 101,186 104,967 105,368 113,824 Income from operations 2,114 2,754 10,248 (1,739) Other income (expense), net (166) (1,001) (3,570) (2,568) Income from continuing operations before income taxes 1,948 1,753 6,678 (4,307) Income taxes 1,213 (274) 1,834 1,332 Net income (loss) 735 2,027 4,844 (5,639) Net income attributable to non-controlling interests, net of tax (2,316) (2,883) (3,459) (4,115) Net income (loss) attributable to ATN International, Inc. stockholders $ (1,581) $ (856) $ 1,385 $ (9,754) Net income (loss) per weighted average share attributable to ATN International, Inc. stockholders Basic $ (0.10) $ (0.05) $ 0.09 $ (0.62) Diluted $ (0.10) $ (0.05) $ 0.09 $ (0.62) |
ORGANIZATION AND BUSINESS OPE_3
ORGANIZATION AND BUSINESS OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
ORGANIZATION AND BUSINESS OPERATIONS | |
Number of Operating Segments | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 06, 2018 |
Cash | ||||
Deposit with non-insured institutions | $ 32,300 | |||
Guyanese dollars | ||||
Cash | ||||
Cash (in GYD) | $ 5,700 | $ 6,600 | ||
U.S. Solar Operations | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Cash | ||||
Amount of restricted cash disposed | $ 8,400 | $ 8,407 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fixed Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fixed assets | ||
Accrued asset retirement obligations | $ 4.2 | $ 4 |
Minimum | ||
Fixed assets | ||
Useful life | 3 years | |
Maximum | ||
Fixed assets | ||
Useful life | 39 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Acquired Intangibles (Details) - Customer relationships | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Intangible assets | |
Estimated life | 7 years |
Maximum | |
Intangible assets | |
Estimated life | 13 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated other comprehensive income (loss) | |||
Beginning Balance | $ 676,122 | ||
Unrecognized actuarial gain (loss), net of tax of $0.1, $0.1 and $0.6 million for the years December 31, 2020, 2019 and 2018 respectively | (2,412) | $ (445) | $ (840) |
Foreign currency translation adjustment | 37 | (1,041) | (4,390) |
Interest rate swap | (101) | (187) | 78 |
Reclassification of foreign currency losses on assets held for sale | 6,036 | ||
Ending Balance | 645,649 | 676,122 | |
Adjust funded status of pension plan, tax | 100 | 100 | 600 |
Accumulated Other Comprehensive Income/(Loss) | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | (3,282) | (1,609) | 3,746 |
Unrecognized actuarial gain (loss), net of tax of $0.1, $0.1 and $0.6 million for the years December 31, 2020, 2019 and 2018 respectively | (2,412) | (445) | (840) |
Foreign currency translation adjustment | 37 | (1,041) | (4,390) |
Interest rate swap | (101) | (187) | 78 |
Reclassification of foreign currency losses on assets held for sale | 6,036 | ||
Ending Balance | 278 | (3,282) | (1,609) |
Pension and Postretirement benefit plans | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | 1,842 | 2,287 | 3,127 |
Unrecognized actuarial gain (loss), net of tax of $0.1, $0.1 and $0.6 million for the years December 31, 2020, 2019 and 2018 respectively | (2,412) | (445) | (840) |
Ending Balance | (570) | 1,842 | 2,287 |
Translation Adjustment | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | (5,076) | (4,035) | 355 |
Foreign currency translation adjustment | 37 | (1,041) | (4,390) |
Ending Balance | (5,039) | (5,076) | (4,035) |
Other | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | (48) | 139 | 264 |
Interest rate swap | (101) | (187) | 78 |
Reclassification of foreign currency losses on assets held for sale | 6,036 | ||
Ending Balance | $ 5,887 | $ (48) | 139 |
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income/(Loss) | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | (203) | ||
Cumulative Effect, Period of Adoption, Adjustment | Other | |||
Accumulated other comprehensive income (loss) | |||
Beginning Balance | $ (203) |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - AOCI reclassifications (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOIC reclassifications | |||
Reclassification of foreign currency losses on assets held for sale | $ 6,036,000 | ||
Pension and Postretirement benefit plans | |||
AOIC reclassifications | |||
Amounts reclassified from accumulated other comprehensive income, net of tax | $ (100,000) | $ (64,000) | $ 54,000 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Retail revenue period for billing postpaid customers in advance | 1 month |
Expected amortization period, when the Company utilizes the practical expedient and expenses the costs as incurred | true |
Renewable Energy | Minimum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Amortization period | 2 years |
Renewable Energy | Maximum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Amortization period | 6 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Risk (Details) - Customer concentration - customer | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Credit concentrations and significant customers | |||
Number of customers | 1 | 1 | 2 |
Percentage of concentration risk | 10.00% | 11.00% | 11.00% |
Accounts receivable | |||
Credit concentrations and significant customers | |||
Number of customers | 2 | 1 | |
Percentage of concentration risk | 10.00% | 10.00% |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair value Instruments - Recurring (Details) - Recurring basis - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair value measurements | ||
Total assets and liabilities measured at fair value | $ 16,365 | $ 15,769 |
Certificate of deposit | ||
Fair value measurements | ||
Cash and cash equivalents | 380 | 380 |
Money market funds | ||
Fair value measurements | ||
Cash and cash equivalents | 2,785 | 2,329 |
Short Term Investments | ||
Fair value measurements | ||
Investments | 416 | |
Other investments | ||
Fair value measurements | ||
Investments | 13,357 | 12,700 |
Interest rate swap | ||
Fair value measurements | ||
Derivative liabilities | (157) | (56) |
Level 1 | ||
Fair value measurements | ||
Total assets and liabilities measured at fair value | 2,785 | 2,745 |
Level 1 | Money market funds | ||
Fair value measurements | ||
Cash and cash equivalents | 2,785 | 2,329 |
Level 1 | Short Term Investments | ||
Fair value measurements | ||
Investments | 416 | |
Level 2 | ||
Fair value measurements | ||
Total assets and liabilities measured at fair value | 223 | 324 |
Level 2 | Certificate of deposit | ||
Fair value measurements | ||
Cash and cash equivalents | 380 | 380 |
Level 2 | Interest rate swap | ||
Fair value measurements | ||
Derivative liabilities | (157) | (56) |
Level 3 | ||
Fair value measurements | ||
Total assets and liabilities measured at fair value | 13,357 | 12,700 |
Level 3 | Other investments | ||
Fair value measurements | ||
Investments | $ 13,357 | $ 12,700 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair value Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Fair value measurements | ||||
Loss as a result of an observable price change in investment | $ 800 | |||
Loss on equity investments | 3,427 | $ 4,724 | ||
Privately Held Investment | ||||
Fair value measurements | ||||
Ownership percentage | 24.00% | |||
Payments to acquire equity method investment | $ 2,800 | 2,800 | ||
Increase in carrying value of equity method investment | 2,400 | |||
Currency gains | 1,600 | |||
Loss on equity investments | 2,000 | |||
Privately Held Investment | Other Assets | ||||
Fair value measurements | ||||
Carrying value | 17,900 | 15,500 | ||
Carrying Value | ||||
Fair value measurements | ||||
Long-term debt | 72,800 | 86,400 | ||
Carrying Value | Other Assets | ||||
Fair value measurements | ||||
Investments | 1,300 | 2,100 | ||
Short Term Investments | ||||
Fair value measurements | ||||
Equity investments | 200 | |||
Loss (gain) on equity securities | 200 | 100 | ||
Other investments | ||||
Fair value measurements | ||||
Equity investments | 11,000 | |||
Unrealized (loss) gain | 800 | 200 | ||
Other investments | Renewable energy partnership | ||||
Fair value measurements | ||||
Equity investments | 2,300 | 2,500 | ||
Investment cost | $ 14,400 | |||
Investment tax credit | 12,000 | |||
Level 2 | Estimated Fair Value | ||||
Fair value measurements | ||||
Long-term debt | $ 73,300 | $ 86,900 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Anti-dilution (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Anti-dilutive common shares not included for computation of earnings per share | |||
Basic weighted-average shares of common stock outstanding | 15,923,000 | 15,983,000 | 15,988,000 |
Stock options (in shares) | 54,000 | ||
Diluted weighted-average shares of common stock outstanding | 15,923,000 | 15,983,000 | 16,042,000 |
Stock options | |||
Anti-dilutive common shares not included for computation of earnings per share | |||
Anti-dilutive potential shares excluded from the computation of diluted weighted average shares outstanding (in shares) | 5,000 | 8,800 | 5,000 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock options | |||
Stock-based compensation | |||
Vesting period | 4 years | ||
Non-cash stock compensation expense | $ 0 | $ 0 | $ 0.1 |
Restricted Stock | |||
Stock-based compensation | |||
Restricted shares of common stock issued (in shares) | 116,404 | 108,278 | 111,474 |
Vesting period | 4 years | ||
Non-cash stock compensation expense | $ 5.6 | $ 6.4 | $ 6.1 |
Management | Restricted Stock | |||
Stock-based compensation | |||
Non-cash stock compensation expense | $ 0.3 | $ 0.5 | $ 0.2 |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 |
Recent accounting pronouncements | |||
Accumulated other comprehensive income | $ 278 | $ (3,282) | |
Retained earnings | 516,901 | 541,890 | |
Valuation allowance | $ 31,014 | 39,406 | |
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | |||
Recent accounting pronouncements | |||
Retained earnings | $ 0 | ||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-01 | |||
Recent accounting pronouncements | |||
Accumulated other comprehensive income | $ (200) | ||
Retained earnings | 200 | ||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2018-02 | Early Adoption | |||
Recent accounting pronouncements | |||
Accumulated other comprehensive income | (800) | ||
Retained earnings | 800 | ||
Valuation allowance | 800 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | ASU 2016-01 | |||
Recent accounting pronouncements | |||
Equity investments that do not have readily determinable fair values | 20,100 | ||
Equity investments | $ 600 |
REVENUE RECOGNITION AND RECEI_3
REVENUE RECOGNITION AND RECEIVABLES - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2018 |
Contracts | |||
Net deferred tax liabilities | $ 10,675 | $ 8,680 | |
Retained earnings | 516,901 | 541,890 | |
Minority interest | $ 108,687 | $ 129,961 | |
Change | ASU 2014-09 | |||
Contracts | |||
Contract asset | $ 1,600 | ||
Contract liability | 200 | ||
Contract acquisition costs | 1,500 | ||
Net deferred tax liabilities | 300 | ||
Retained earnings | 1,500 | ||
Minority interest | 1,100 | ||
Change | ASU 2014-09 | Prepayments and other current assets | |||
Contracts | |||
Contract asset | 1,200 | ||
Contract acquisition costs | 900 | ||
Change | ASU 2014-09 | Other non current assets | |||
Contracts | |||
Contract asset | 400 | ||
Contract acquisition costs | $ 600 |
REVENUE RECOGNITION AND RECEI_4
REVENUE RECOGNITION AND RECEIVABLES - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contract Assets and Liabilities | ||
Contract Asset - current | $ 2,413 | |
Change in contract asset - current | 65 | |
Contract Asset - current | $ 2,478 | $ 2,413 |
% of change in contract asset - current | 3.00% | |
Contract asset, noncurrent | $ 905 | |
Change in contract asset - noncurrent | 5 | |
Contract asset, noncurrent | $ 910 | 905 |
% of change in contract asset - noncurrent | 1.00% | |
Contract liability- current | $ (15,044) | |
Change in contract liabilities - current | (3,500) | |
Contract liability- current | $ (18,544) | (15,044) |
% of change in contract liabilities - current | (23.00%) | |
Contract liability- noncurrent | $ (5,450) | |
Change in contract liabilities - noncurrent | 3,257 | |
Contract liability- noncurrent | $ (2,193) | (5,450) |
% of change in contract liabilities - Noncurrent | 60.00% | |
Net contract liability | $ (17,176) | |
Change in net contract liability | (173) | |
Net contract liability | $ (17,349) | (17,176) |
% of change in net contract liability | (1.00%) | |
Revenue recognized related to contract liability | $ 16,900 | |
Amortization of contract assets | 2,300 | |
Revenue recognized in the period related to performance obligations that were satisfied or partially satisfied in previous periods | $ 0 | $ 0 |
Retail revenue period for billing postpaid customers in advance | 1 month |
REVENUE RECOGNITION AND RECEI_5
REVENUE RECOGNITION AND RECEIVABLES - Contract Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contract Acquisition Costs | ||
Amortization of contract acquisition cost | $ 2.1 | $ 1.8 |
Prepayments and other current assets | ||
Contract Acquisition Costs | ||
Short-term contract acquisition costs | 1.9 | 1.7 |
Other non current assets | ||
Contract Acquisition Costs | ||
Long-term contract acquisition costs | $ 1.2 | $ 1.1 |
REVENUE RECOGNITION AND RECEI_6
REVENUE RECOGNITION AND RECEIVABLES - Remaining Performance Obligations - (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 241 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 24 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue Recognition | ||
Transaction price allocated to unsatisfied performance obligations | $ 299 | |
Period to satisfy the remaining performance obligations and recognize the transaction price | 24 months | |
Right to invoice and wholly unsatisfied performance obligation practical expedients | true |
REVENUE RECOGNITION AND RECEI_7
REVENUE RECOGNITION AND RECEIVABLES - Allowance for Credit Losses - (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Allowance for Credit Loss | ||
Gross accounts receivable | $ 67,114 | $ 48,628 |
Current accounts receivable | 57,500 | 48,600 |
Allowance for credit loss | 12,121 | $ 12,724 |
Other Assets | ||
Allowance for Credit Loss | ||
Noncurrent accounts receivable | $ 9,600 |
REVENUE RECOGNITION AND RECEI_8
REVENUE RECOGNITION AND RECEIVABLES - Allowance for Credit Losses Rollforward - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUE RECOGNITION AND RECEIVABLES | |||
Beginning Balance | $ 12,724 | ||
Current period provision for expected losses | 5,010 | $ 5,816 | $ 5,134 |
Write-offs charged against the allowance | (6,351) | ||
Recoveries collected | 738 | ||
Ending Balance | $ 12,121 | $ 12,724 |
REVENUE RECOGNITION AND RECEI_9
REVENUE RECOGNITION AND RECEIVABLES - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable | ||
Current accounts receivable | $ 57,500 | $ 48,600 |
Gross accounts receivable | 67,114 | 48,628 |
Less: allowance for doubtful accounts | (12,121) | (12,724) |
Total accounts receivable, net | 54,993 | 35,904 |
Retail | ||
Accounts Receivable | ||
Current accounts receivable | 22,178 | 13,659 |
Wholesale | ||
Accounts Receivable | ||
Current accounts receivable | 35,322 | $ 34,969 |
Noncurrent accounts receivable | $ 9,614 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
LEASES | ||||
Operating lease right-of-use asset | $ 63,235 | $ 68,763 | ||
Short-term lease liability | 12,371 | 11,406 | ||
Long-term lease liability | 51,082 | 56,164 | ||
Total equity | $ 754,336 | $ 806,083 | $ 823,324 | $ 830,223 |
Package of practical expedients | true | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
LEASES | ||||
Total equity | $ 2,636 | |||
ASC 842 | Cumulative Effect, Period of Adoption, Adjustment | ||||
LEASES | ||||
Operating lease right-of-use asset | 70,800 | |||
Short-term lease liability | 8,200 | |||
Long-term lease liability | 61,200 | |||
Total equity | $ 0 | |||
Minimum | ||||
LEASES | ||||
Operating lease, lease term | 3 years | |||
Finance lease, lease term | 3 years | |||
Maximum | ||||
LEASES | ||||
Operating lease, lease term | 10 years | |||
Finance lease, lease term | 10 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense and Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
LEASES | ||
Operating lease cost | $ 16,409 | $ 15,194 |
Short-term lease cost | 2,712 | 3,426 |
Variable lease cost | 4,059 | 2,803 |
Total operating lease cost | 23,180 | 21,423 |
Payments for lease liabilities | 16,100 | 15,100 |
Lease liabilities arising from ROU | 7,800 | 9,700 |
Finance lease cost: | ||
Amortization of right-of-use asset | 2,181 | 2,318 |
Variable costs | 852 | 964 |
Total finance lease cost | 3,033 | 3,282 |
Finance leases cost included in property, plant and equipment | 25,400 | 25,900 |
Accumulated amortization related to finance leases | $ 9,500 | $ 9,400 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Principal payments, finance lease liabilities | $ 400 | |
Additional finance lease liabilities recognized | 1,600 | |
Finance lease liability | 1,200 | |
Finance lease liability, current | $ 300 |
LEASES - Weighted average remai
LEASES - Weighted average remaining lease terms and discount rates (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
LEASES | ||
Operating leases, weighted average remaining lease term | 5 years 10 months 24 days | 6 years 6 months |
Financing leases, weighted average remaining lease term | 10 years 10 months 24 days | 11 years 8 months 12 days |
Operating leases, weighted average discount rate | 5.00% | 5.00% |
Financing leases, weighted average discount rate | 3.30% |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
LEASES | ||
Next Twelve Months | $ 15,211 | $ 14,526 |
Year Two | 14,535 | 13,714 |
Year Three | 12,132 | 12,787 |
Year Four | 10,844 | 10,713 |
Year Five | 7,816 | 9,671 |
Thereafter | 13,094 | 18,355 |
Total lease payments | 73,632 | 79,766 |
Less imputed interest | (10,179) | (12,195) |
Total | $ 63,453 | $ 67,571 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent | us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent |
IMPACT OF HURRICANES IRMA AND_2
IMPACT OF HURRICANES IRMA AND MARIA (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 | |
IMPACT OF THE HURRICANES IRMA AND MARIA | |||||||||||
Revenue | $ 123,702 | $ 111,739 | $ 109,098 | $ 110,905 | $ 112,085 | $ 115,616 | $ 107,721 | $ 103,300 | $ 455,444 | $ 438,722 | $ 451,207 |
Payment for network repairs and resiliency enhancements | 123 | 80,152 | |||||||||
HURRICANES IRMA AND MARIA | |||||||||||
IMPACT OF THE HURRICANES IRMA AND MARIA | |||||||||||
Payment for network repairs and resiliency enhancements | $ 100 | 80,200 | |||||||||
HURRICANES IRMA AND MARIA | Universal Service Fund programs | |||||||||||
IMPACT OF THE HURRICANES IRMA AND MARIA | |||||||||||
Revenue | $ 15,500 |
DISPOSITIONS AND PLATFORM INV_3
DISPOSITIONS AND PLATFORM INVESTMENTS - Disposition - US Solar Business (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - U.S. Solar Operations - USD ($) $ in Thousands | Nov. 06, 2018 | Dec. 31, 2018 |
Disposition | ||
Cash proceeds | $ 65,286 | |
Debt assumption | 57,300 | |
Receivables, escrowed | 6,500 | |
Total value of disposal consideration | 122,600 | |
Assets and liabilities disposed | ||
Cash | 3,049 | |
Accounts receivable | 1,248 | |
Prepayments and other current assets | 801 | |
Property, plant and equipment | 94,678 | |
Restricted cash | 8,407 | $ 8,400 |
Other assets | 38 | |
Current portion of long-term debt | (6,992) | |
Accounts payable and accrued liabilities | (938) | |
Accrued taxes | 586 | |
Long-term debt, excluding current portion | (48,038) | |
Net assets disposed | 52,839 | |
Consideration less net assets disposed | 12,447 | |
Transaction costs | (2,133) | |
Gain | 10,314 | |
Gain to non-controlling interests | $ 1,100 | |
Transaction-related charges | $ 2,100 |
DISPOSITIONS AND PLATFORM INV_4
DISPOSITIONS AND PLATFORM INVESTMENTS - Disposition - Vibrant Energy (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Nov. 19, 2020 | |
Disposition | |||
Current assets | $ 34,735 | ||
Current liabilities | 717 | ||
Vibrant Energy Holdings Pte. Ltd | |||
Disposition | |||
Ownership percentage | 33.00% | ||
Vibrant Energy Holdings Pte. Ltd | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Disposition | |||
Percentage of equity interest sold | 67.00% | ||
Vibrant Energy Holdings Pte. Ltd | Held for sale | |||
Disposition | |||
Percentage of equity interest sold | 67.00% | ||
Total value of disposal consideration | $ 21,000 | ||
Amount of earn out consideration | $ 6,300 | ||
Percentage of equity interest retained | 33.00% | ||
Assets | 34,700 | ||
Liabilities | 700 | ||
Property, plant and equipment | 30,200 | ||
Current assets | 3,800 | ||
Other assets | 700 | ||
Current liabilities | 700 | ||
Loss on disposition | $ 21,500 |
DISPOSITIONS AND PLATFORM INV_5
DISPOSITIONS AND PLATFORM INVESTMENTS - Disposition - Platform Investments (Details) - Alaska Merger Agreement $ in Millions | Dec. 31, 2020USD ($) |
Acquisition | |
Purchase price | $ 340 |
Ownership interest acquired (as a percent) | 51.00% |
Freedom3 | |
Acquisition | |
Ownership interest acquired (as a percent) | 49.00% |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fixed Assets | |||
Total plant in service | $ 1,201,871 | $ 1,190,375 | |
Total property, plant, and equipment | 1,252,780 | 1,237,555 | |
Less: Accumulated depreciation | (716,318) | (631,974) | |
Net fixed assets | 536,462 | 605,581 | |
Depreciation and amortization | 86,500 | 86,900 | $ 83,000 |
Capital expenditure grants | 16,300 | 3,100 | |
Capitalized implementation costs | 5,600 | 3,600 | |
Amortization of implementation costs | $ 700 | 200 | |
Minimum | |||
Fixed Assets | |||
Useful Life | 3 years | ||
Maximum | |||
Fixed Assets | |||
Useful Life | 39 years | ||
Telecommunications equipment and towers | |||
Fixed Assets | |||
Total plant in service | $ 1,012,457 | 979,028 | |
Capital leased assets, cost | 25,400 | 25,900 | |
Capital leased assets, net | $ 15,900 | $ 16,500 | |
Telecommunications equipment and towers | Minimum | |||
Fixed Assets | |||
Useful Life | 5 years | 5 years | |
Telecommunications equipment and towers | Maximum | |||
Fixed Assets | |||
Useful Life | 15 years | 15 years | |
Solar assets | |||
Fixed Assets | |||
Total plant in service | $ 40,043 | ||
Solar assets | Minimum | |||
Fixed Assets | |||
Useful Life | 20 years | 20 years | |
Solar assets | Maximum | |||
Fixed Assets | |||
Useful Life | 23 years | 23 years | |
Office and computer equipment | |||
Fixed Assets | |||
Total plant in service | $ 87,427 | $ 82,630 | |
Office and computer equipment | Minimum | |||
Fixed Assets | |||
Useful Life | 3 years | 3 years | |
Office and computer equipment | Maximum | |||
Fixed Assets | |||
Useful Life | 10 years | 10 years | |
Buildings | |||
Fixed Assets | |||
Total plant in service | $ 52,048 | $ 48,565 | |
Buildings | Minimum | |||
Fixed Assets | |||
Useful Life | 15 years | 15 years | |
Buildings | Maximum | |||
Fixed Assets | |||
Useful Life | 39 years | 39 years | |
Transportation vehicles | |||
Fixed Assets | |||
Total plant in service | $ 13,730 | $ 13,424 | |
Transportation vehicles | Minimum | |||
Fixed Assets | |||
Useful Life | 3 years | 3 years | |
Transportation vehicles | Maximum | |||
Fixed Assets | |||
Useful Life | 10 years | 10 years | |
Leasehold improvements | |||
Fixed Assets | |||
Total plant in service | $ 16,709 | $ 2,316 | |
Land | |||
Fixed Assets | |||
Total plant in service | 8,180 | 15,503 | |
Furniture and fixtures | |||
Fixed Assets | |||
Total plant in service | $ 11,320 | $ 8,866 | |
Furniture and fixtures | Minimum | |||
Fixed Assets | |||
Useful Life | 5 years | 5 years | |
Furniture and fixtures | Maximum | |||
Fixed Assets | |||
Useful Life | 10 years | 10 years | |
Construction in progress | |||
Fixed Assets | |||
Total property, plant, and equipment | $ 50,909 | $ 47,180 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill | |||
Goodwill impairment | $ 0 | $ 3,279 | $ 0 |
Goodwill | 60,691 | $ 60,691 | 63,970 |
Viya | |||
Goodwill | |||
Goodwill | $ 20,600 | ||
Amount by which fair value exceeded its carrying value | 9.00% | 12.00% | |
Renewable Energy | |||
Goodwill | |||
Goodwill impairment | $ 0 | $ 3,279 | |
Goodwill | $ 0 | $ 0 | $ 3,279 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the carrying amount of goodwill, by operating segment | |||
Balance at the beginning of the period | $ 60,691 | $ 63,970 | |
Impairment | 0 | (3,279) | $ 0 |
Balance at the end of the period | 60,691 | 60,691 | 63,970 |
International Telecom | |||
Changes in the carrying amount of goodwill, by operating segment | |||
Balance at the beginning of the period | 24,326 | 24,326 | |
Impairment | 0 | 0 | |
Balance at the end of the period | 24,326 | 24,326 | 24,326 |
US Telecom | |||
Changes in the carrying amount of goodwill, by operating segment | |||
Balance at the beginning of the period | 35,268 | 35,268 | |
Impairment | 0 | 0 | |
Balance at the end of the period | 35,268 | 35,268 | 35,268 |
Renewable Energy | |||
Changes in the carrying amount of goodwill, by operating segment | |||
Balance at the beginning of the period | 0 | 3,279 | |
Impairment | 0 | (3,279) | |
Balance at the end of the period | $ 0 | $ 0 | $ 3,279 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Changes in the carrying amount of goodwill, by operating segment | |||
Goodwill, Gross | $ 60,691 | $ 63,970 | |
Accumulated impairment | 0 | (3,279) | |
Goodwill, Total | 60,691 | 60,691 | $ 63,970 |
International Telecom | |||
Changes in the carrying amount of goodwill, by operating segment | |||
Goodwill, Gross | 24,326 | 24,326 | |
Accumulated impairment | 0 | 0 | |
Goodwill, Total | 24,326 | 24,326 | 24,326 |
US Telecom | |||
Changes in the carrying amount of goodwill, by operating segment | |||
Goodwill, Gross | 35,268 | 35,268 | |
Accumulated impairment | 0 | 0 | |
Goodwill, Total | 35,268 | 35,268 | 35,268 |
Renewable Energy | |||
Changes in the carrying amount of goodwill, by operating segment | |||
Goodwill, Gross | 0 | 3,279 | |
Accumulated impairment | 0 | (3,279) | |
Goodwill, Total | $ 0 | $ 0 | $ 3,279 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Change In Carrying Amount Of Telecommunications Licenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the beginning of the period | $ 93,686 | ||
Balance at the end of the period | 114,083 | $ 93,686 | |
Telecommunications Licenses | |||
Telecommunications licenses | |||
Impairment of intangible assets | 0 | $ 0 | |
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the beginning of the period | 93,686 | 93,686 | |
Acquired licenses | 20,397 | 0 | |
Dispositions | 0 | 0 | |
Transfers | 0 | ||
Balance at the end of the period | 114,083 | 93,686 | 93,686 |
Telecommunications Licenses | International Telecom | |||
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the beginning of the period | 23,347 | 23,347 | |
Acquired licenses | 200 | 0 | |
Dispositions | 0 | 0 | |
Transfers | 11,251 | ||
Balance at the end of the period | 34,798 | 23,347 | 23,347 |
Telecommunications Licenses | US Telecom | |||
Changes in the carrying amount of the company's telecommunications licenses, by operating segment | |||
Balance at the beginning of the period | 70,339 | 70,339 | |
Acquired licenses | 20,197 | 0 | |
Dispositions | 0 | 0 | |
Transfers | (11,251) | ||
Balance at the end of the period | $ 79,285 | $ 70,339 | $ 70,339 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS - Customer Relationships (Details) - International Telecom - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Customer relationships | |||
Finite-lived intangible assets | |||
Amortization | $ 1,500 | $ 1,800 | $ 2,400 |
Future Amortization | |||
2021 | 1,300 | ||
2022 | 1,143 | ||
2023 | 827 | ||
2024 | 576 | ||
2025 | 576 | ||
Thereafter | 1,491 | ||
Total | 5,913 | ||
Franchise Rights | |||
Finite-lived intangible assets | |||
Other intangible assets | 3,000 | ||
Trade names | |||
Finite-lived intangible assets | |||
Other intangible assets | $ 1,100 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) $ in Thousands | Mar. 26, 2020USD ($) | Apr. 10, 2019USD ($) | May 22, 2017USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 01, 2016USD ($) |
Long-term debt | |||||||||
Outstanding borrowings | $ 72,823 | $ 86,426 | |||||||
One Communications Debt | |||||||||
Long-term debt | |||||||||
Financing costs | $ 300 | ||||||||
Outstanding debt | 13,400 | ||||||||
Unamortized financing costs | 100 | ||||||||
One Communications Debt | Minimum | |||||||||
Long-term debt | |||||||||
Percentage of notional amount required for hedging arrangement | 30.00% | ||||||||
One Communications Debt | Minimum | One-month LIBOR | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 2.50% | ||||||||
One Communications Debt | Maximum | One-month LIBOR | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 2.75% | ||||||||
Viya Debt | |||||||||
Long-term debt | |||||||||
Term loan assumed | $ 60,000 | ||||||||
Net leverage ratio | 3.5 | ||||||||
Stated interest rate | 4.00% | 4.00% | |||||||
Financing costs | $ 900 | ||||||||
Intercompany debt limit | $ 75,000 | ||||||||
Outstanding debt | 60,000 | ||||||||
Unamortized financing costs | 500 | ||||||||
Revolver loan | Credit facility | |||||||||
Long-term debt | |||||||||
Maximum borrowing capacity | $ 200,000 | ||||||||
Remaining borrowing capacity | 184,000 | ||||||||
Net leverage ratio | 1.75 | ||||||||
Net leverage ratio, if qualifying event | 3.25 | ||||||||
Borrowings outstanding | 0 | ||||||||
Revolver loan | Credit facility | Minimum | |||||||||
Long-term debt | |||||||||
Commitment fee (as a percent) | 0.15% | ||||||||
Revolver loan | Credit facility | Minimum | LIBOR | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 1.25% | ||||||||
Revolver loan | Credit facility | Minimum | Base rate | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 0.25% | ||||||||
Revolver loan | Credit facility | Maximum | |||||||||
Long-term debt | |||||||||
Commitment fee (as a percent) | 0.375% | ||||||||
Net leverage ratio | 2.75 | ||||||||
Revolver loan | Credit facility | Maximum | LIBOR | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 2.25% | ||||||||
Revolver loan | Credit facility | Maximum | Base rate | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 1.25% | ||||||||
Letter of credit sub-facility | Credit facility | |||||||||
Long-term debt | |||||||||
Maximum borrowing capacity | $ 75,000 | ||||||||
Performance letters of credit issued and outstanding | 16,000 | ||||||||
Swingline sub-facility | Credit facility | |||||||||
Long-term debt | |||||||||
Maximum borrowing capacity | $ 10,000 | ||||||||
Base rate before one-week or one-month LIBOR (as a percent) | 1.00% | ||||||||
Swingline sub-facility | Credit facility | Federal Funds Effective Rate | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||
Term loans | Credit facility | |||||||||
Long-term debt | |||||||||
Maximum borrowing capacity | $ 200,000 | ||||||||
Commnet Finance | Senior secured delayed draw term loan | Receivable credit facility | |||||||||
Long-term debt | |||||||||
Maximum borrowing capacity | $ 75,000 | ||||||||
Outstanding borrowings | 0 | ||||||||
Commnet Finance | Senior secured delayed draw term loan | Receivable credit facility | LIBOR | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 2.50% | ||||||||
Commnet Finance | Senior secured delayed draw term loan | Receivable credit facility | Base rate | |||||||||
Long-term debt | |||||||||
Basis spread on variable rate (as a percent) | 1.50% | ||||||||
Cash flow hedge | Interest rate swap | |||||||||
Long-term debt | |||||||||
Notional amount | $ 7,300 | $ 11,000 | |||||||
Interest rate (as a percent) | 1.874% |
GOVERNMENT GRANTS (Details)
GOVERNMENT GRANTS (Details) $ in Thousands | Nov. 16, 2020USD ($) | Aug. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)MWitem | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Government Grants | |||||||||||||
Revenue | $ 123,702 | $ 111,739 | $ 109,098 | $ 110,905 | $ 112,085 | $ 115,616 | $ 107,721 | $ 103,300 | $ 455,444 | $ 438,722 | $ 451,207 | ||
Payment for PALs | $ 20,396 | ||||||||||||
Universal Service Fund programs | |||||||||||||
Government Grants | |||||||||||||
Number of fund disbursement programs | item | 4 | ||||||||||||
Universal Service Fund programs | HURRICANES IRMA AND MARIA | |||||||||||||
Government Grants | |||||||||||||
Revenue | 15,500 | ||||||||||||
High-Cost Support Program | US Telecom | |||||||||||||
Government Grants | |||||||||||||
Revenue | $ 1,200 | 1,200 | 1,200 | ||||||||||
High-Cost Support Program | International Telecom | |||||||||||||
Government Grants | |||||||||||||
Revenue | 16,400 | 16,400 | 16,500 | ||||||||||
Grant Funds Awarded | $ 8,600 | $ 16,400 | |||||||||||
Grant fund term | 10 years | 10 years | |||||||||||
High-Cost Support Program | International Telecom | Grant Reduction During First Year | |||||||||||||
Government Grants | |||||||||||||
Ratio of reduction in grant amount | 0.67 | ||||||||||||
Amount of reduction in grant amount awarded | $ 10,900 | ||||||||||||
High-Cost Support Program | International Telecom | Grant Reduction During Second Year | |||||||||||||
Government Grants | |||||||||||||
Ratio of reduction in grant amount | 0.33 | ||||||||||||
Amount of reduction in grant amount awarded | $ 5,500 | ||||||||||||
High-Cost Support Program | International Telecom | HURRICANES IRMA AND MARIA | |||||||||||||
Government Grants | |||||||||||||
Revenue | $ 15,500 | ||||||||||||
High-Cost Support Program | International Telecom | Maximum | |||||||||||||
Government Grants | |||||||||||||
Proposed grant award | 18,700 | ||||||||||||
E-Rate, Lifeline and Rural Health Care Support Programs | |||||||||||||
Government Grants | |||||||||||||
Revenue | 10,000 | 6,100 | 8,200 | ||||||||||
Network Connectivity for Eligible Communities | |||||||||||||
Government Grants | |||||||||||||
Grant Funds Awarded | 1,000 | 15,800 | |||||||||||
Proceeds from completion of construction | 5,400 | ||||||||||||
Reimbursement of capital expenditures | 3,100 | ||||||||||||
Offsetting operating activities | 2,900 | 2,300 | |||||||||||
Construction obligation completed | 10,200 | ||||||||||||
Construction obligation yet to be completed | $ 6,600 | ||||||||||||
CARES Act | |||||||||||||
Government Grants | |||||||||||||
Grant Funds Awarded | 16,300 | ||||||||||||
Tribal Bidding Credit | |||||||||||||
Government Grants | |||||||||||||
Wireless service spectrum (in Mhz) | MW | 600 | ||||||||||||
Revenue | $ 7,400 | ||||||||||||
Grant funds used to offset fixed asset related costs | 5,800 | $ 5,800 | |||||||||||
Grant funds used to offset operating expenses | 1,600 | 1,600 | |||||||||||
Offsetting operating activities | 200 | ||||||||||||
Amount spent on capital expenditure | 5,800 | ||||||||||||
Connect America Fund Phase II Auction | |||||||||||||
Government Grants | |||||||||||||
Revenue | 7,600 | $ 5,300 | |||||||||||
Grant Funds Awarded | $ 79,900 | ||||||||||||
Grant fund term | 10 years | ||||||||||||
CBRS Auction | |||||||||||||
Government Grants | |||||||||||||
Initial term of licenses | 10 years | ||||||||||||
Payment for PALs | $ 20,400 | ||||||||||||
RDOF | |||||||||||||
Government Grants | |||||||||||||
Grant funds expected to be awarded | $ 20,100 | $ 20,100 | |||||||||||
Grant fund term | 10 years | ||||||||||||
Number of households to receive broadband coverage | item | 10,000 |
EQUITY (Details)
EQUITY (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 19, 2016 | |
Stock-based compensation | ||||
Number of shares reserved to be granted under the plan | 2,000,000 | |||
Number of shares available for grant | 610,000 | |||
Treasury Stock | ||||
Shares Repurchased | 161,500 | 45,807 | 171,907 | |
Aggregate Cost | $ 8,327,000 | $ 2,582,000 | $ 12,437,000 | |
Shares repurchased to satisfy tax withholdings and exercise obligations | 32,227 | 42,703 | 141,180 | |
Aggregate cost to satisfy tax withholdings and exercise obligations | $ 1,733,000 | $ 2,419,000 | $ 10,859,000 | |
Average Repurchase Price (in dollars per share) | $ 53.78 | $ 56.65 | $ 76.76 | |
Number of Options | ||||
Exercised (in shares) | (17,000) | (158,021) | ||
Stock-based compensation, additional disclosures | ||||
Cash proceeds received upon exercise of options | $ 72,000 | |||
2016 Repurchase Plan | ||||
Treasury Stock | ||||
Authorized amount | $ 50,000,000 | |||
Shares Repurchased | 129,273 | 3,104 | 30,427 | |
Aggregate Cost | $ 6,589,000 | $ 162,000 | $ 1,576,000 | |
Average Repurchase Price (in dollars per share) | $ 50.97 | $ 52.37 | $ 51.82 | |
Value of shares available for repurchase | $ 30,900,000 | |||
Stock options | ||||
Stock-based compensation | ||||
Expiration term | 10 years | |||
Vesting period | 4 years | |||
Number of Options | ||||
Outstanding at the beginning of the period (in shares) | 15,000 | 42,000 | ||
Granted (in shares) | 0 | 0 | 0 | |
Forfeited (in shares) | (7,500) | |||
Expired (in shares) | (2,500) | |||
Exercised (in shares) | (17,000) | |||
Outstanding at the end of the period (in shares) | 15,000 | 15,000 | 42,000 | |
Vested and expected to vest at the end of the period (in shares) | 15,000 | 15,000 | ||
Exercisable at the end of the period (in shares) | 15,000 | |||
Weighted Avg. Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 49.34 | $ 48.61 | ||
Forfeited (in dollars per share) | 52.97 | |||
Expired (in dollars per share) | 52.97 | |||
Exercised (in dollars per share) | 45.39 | |||
Outstanding at the end of the period (in dollars per share) | 49.34 | 49.34 | $ 48.61 | |
Vested and expected to vest at the end of the period (in dollars per share) | 49.34 | $ 49.34 | ||
Exercisable at the end of the period (in dollars per share) | $ 49.34 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding | 2 years 2 months 12 days | 3 years 2 months 12 days | ||
Vested and expected to vest | 2 years 2 months 12 days | 3 years 2 months 12 days | ||
Exercisable | 2 years 2 months 12 days | |||
Aggregate Intrinsic Value | ||||
Outstanding | $ 34,600 | $ 170,900 | ||
Vested and expected to vest | 34,600 | 170,900 | ||
Exercisable | 34,600 | |||
Stock-based compensation, additional disclosures | ||||
Aggregate intrinsic value of options exercised | 229,000 | $ 5,927,000 | ||
Cash proceeds received upon exercise of options | 72,000 | |||
Stock compensation expense | ||||
Stock compensation expense | $ 0 | 0 | 100,000 | |
Restricted Stock | ||||
Stock-based compensation | ||||
Vesting period | 4 years | |||
Unamortized stock based compensation | ||||
Unamortized stock based compensation | $ 8,300,000 | |||
Weighted-average period for recognition of unamortized stock-based compensation cost | 2 years 4 months 24 days | |||
Stock compensation expense | ||||
Stock compensation expense | $ 5,600,000 | $ 6,400,000 | $ 6,100,000 | |
Shares | ||||
Unvested at the beginning of the period (in shares) | 204,146 | 200,653 | ||
Granted (in shares) | 116,404 | 108,278 | 111,474 | |
Forfeited (in shares) | (3,323) | (18,579) | ||
Vested and issued (in shares) | (93,604) | (86,206) | ||
Unvested at the end of the period (in shares) | 223,623 | 204,146 | 200,653 | |
Weighted Avg. Fair Value | ||||
Unvested at the beginning of the period (in dollars per share) | $ 60.13 | $ 65.21 | ||
Granted (in dollars per share) | 50.45 | 54.68 | ||
Forfeited (in dollars per share) | 59.99 | 57.04 | ||
Vested and issued (in dollars per share) | 61.75 | 65.77 | ||
Unvested at the end of the period (in dollars per share) | $ 54.42 | $ 60.13 | $ 65.21 | |
Restricted Stock | Management | ||||
Stock compensation expense | ||||
Stock compensation expense | $ 300,000 | $ 500,000 | $ 200,000 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Before Income Taxes (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 | |
Components of income before income taxes | |||||||||||
Domestic | $ (17,689) | $ (15,661) | $ 28,917 | ||||||||
Foreign | 17,782 | 21,733 | 24,825 | ||||||||
INCOME BEFORE INCOME TAXES | $ (15,781) | $ 6,283 | $ 6,106 | $ 3,485 | $ (4,307) | $ 6,678 | $ 1,753 | $ 1,948 | $ 93 | $ 6,072 | $ 53,742 |
INCOME TAXES - Income Tax Recon
INCOME TAXES - Income Tax Reconciliation (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 from the tax computed at statutory income tax rates to the Company's income tax expense | |||||||||||
Tax computed at statutory U.S. federal income tax rates | $ 20 | $ 1,275 | $ 11,286 | ||||||||
Non-controlling interest | (851) | (648) | (1,114) | ||||||||
Foreign tax rate differential | 1,866 | (1,769) | (2,662) | ||||||||
Over (under) provided in prior periods | (520) | (244) | (4,683) | ||||||||
Nondeductible expenses | 1,504 | 3,781 | 1,610 | ||||||||
Benefit Attributable CARES Act | (3,064) | ||||||||||
Capitalized transactions costs | 19 | 62 | |||||||||
Change in tax reserves | 2,148 | 3,883 | 10,657 | ||||||||
State Taxes, net of federal benefit | (409) | (429) | 1,674 | ||||||||
Change in valuation allowance | 33 | (35) | 1,539 | ||||||||
Investment Tax Credit | 84 | (1,215) | |||||||||
Refund Claim for Domestic Production Deduction | 235 | ||||||||||
Tax Cuts and Jobs Act of 2017 | (148) | ||||||||||
Capital loss | 15 | ||||||||||
Deferred income tax revaluation | (10) | (513) | |||||||||
Other, net | 399 | ||||||||||
Total income tax expense (benefit) | $ 1,858 | $ 92 | $ (2,258) | $ 1,109 | $ 1,332 | $ 1,834 | $ (274) | $ 1,213 | $ 801 | $ 4,105 | $ 18,870 |
INCOME TAXES - Components of _2
INCOME TAXES - Components of Income Tax Expense (Benefit) (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 | |
Current: | |||||||||||
United States-Federal | $ 504 | $ (1,559) | $ 24,546 | ||||||||
United States-State | 3 | (336) | 4,506 | ||||||||
Foreign | 7,611 | 8,192 | 13,060 | ||||||||
Total current income tax expense | 8,118 | 6,297 | 42,112 | ||||||||
Deferred: | |||||||||||
United States-Federal | (6,527) | (1,805) | (17,947) | ||||||||
United States-State | (413) | (93) | (2,832) | ||||||||
Foreign | (377) | (294) | (2,463) | ||||||||
Total deferred income tax expense (benefit) | (7,317) | (2,192) | (23,242) | ||||||||
Consolidated: | |||||||||||
United States-Federal | (6,023) | (3,364) | 6,599 | ||||||||
United States-State | (410) | (429) | 1,674 | ||||||||
Foreign | 7,234 | 7,898 | 10,597 | ||||||||
Total income tax expense (benefit) | $ 1,858 | $ 92 | $ (2,258) | $ 1,109 | $ 1,332 | $ 1,834 | $ (274) | $ 1,213 | 801 | 4,105 | $ 18,870 |
Deferred tax assets: | |||||||||||
Accounts receivable and inventory allowances | 1,972 | 1,603 | 1,972 | 1,603 | |||||||
Basis in investments | 7,512 | 6,937 | 7,512 | 6,937 | |||||||
Accrued expenses | 4,701 | 5,923 | 4,701 | 5,923 | |||||||
Deferred revenue | 3,141 | 2,864 | 3,141 | 2,864 | |||||||
Employee benefits | 4,363 | 3,559 | 4,363 | 3,559 | |||||||
Other, net | 744 | 744 | |||||||||
Net operating losses | 26,582 | 40,491 | 26,582 | 40,491 | |||||||
Tax Credits | 1,997 | 2,726 | 1,997 | 2,726 | |||||||
Operating lease liability | 14,648 | 15,869 | 14,648 | 15,869 | |||||||
Total deferred tax asset | 65,660 | 79,972 | 65,660 | 79,972 | |||||||
Deferred tax liabilities: | |||||||||||
Acquired intangible assets, property and equipment | 26,736 | 30,419 | 26,736 | 30,419 | |||||||
Right-of-use asset | 14,594 | 15,869 | 14,594 | 15,869 | |||||||
Prepaid expense | 209 | 181 | 209 | 181 | |||||||
Other, net | 195 | 195 | |||||||||
Total deferred tax liabilities | 41,539 | 46,664 | 41,539 | 46,664 | |||||||
Valuation allowance | (31,014) | (39,406) | (31,014) | (39,406) | |||||||
Net deferred tax liabilities | (6,893) | (6,098) | (6,893) | (6,098) | |||||||
Deferred tax assets: | |||||||||||
Total deferred tax asset | 3,782 | 2,582 | 3,782 | 2,582 | |||||||
Deferred tax liabilities: | |||||||||||
Total deferred tax liabilities | (10,675) | (8,680) | (10,675) | (8,680) | |||||||
Net deferred tax liabilities | $ (6,893) | $ (6,098) | $ (6,893) | $ (6,098) |
INCOME TAXES - Components of _3
INCOME TAXES - Components of Income Tax - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating loss carryforwards | |||
Effective tax rate (as a percent) | 858.30% | 67.60% | |
Income Tax Benefit, Utilization of Losses at Higher Rate, Coronavirus Aid, Relief, and Economic Security Act | $ 3,100 | ||
Increase unrecognized tax benefits | 2,100 | $ 3,900 | |
Net increase for permanently non-deductible expenses | 1,500 | 3,800 | |
Income tax benefit from investment tax credit | 1,200 | ||
Loss on sale of Vibrant with no tax benefit | 21,500 | ||
Operating loss carryforward that will expire | 57,300 | ||
Operating loss carryforward with no expiration | 73,600 | ||
Valuation allowance | 31,014 | 39,406 | |
Undistributed earnings of foreign subsidiaries | 145,100 | ||
Unrecognized benefits, including interest and penalties | 40,800 | 38,600 | $ 34,700 |
Increase from prior period positions | 2,100 | ||
Increase in unrecognized tax benefits taken during the current period | 2,964 | $ 3,383 | $ 3,408 |
Settlement of prior year positions | 2,900 | ||
Federal | |||
Operating loss carryforwards | |||
Operating loss carryforwards | 1,100 | ||
State | |||
Operating loss carryforwards | |||
Operating loss carryforwards | 18,900 | ||
Foreign | |||
Operating loss carryforwards | |||
Operating loss carryforwards | $ 110,900 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Activity related to unrecognized tax benefits | |||
Gross unrecognized tax benefits at the beginning of the period | $ 32,682 | $ 30,232 | $ 20,961 |
Increase in unrecognized tax benefits taken during a prior period | 7,293 | ||
Increase in unrecognized tax benefits taken during the current period | 2,964 | 3,383 | 3,408 |
Lapse in statute of limitations | (1,768) | (933) | (1,430) |
Gross unrecognized tax benefits at the end of the period | 33,878 | 32,682 | 30,232 |
Interest and penalties accrued | 6,900 | $ 5,900 | $ 4,500 |
Unrecognized tax benefits that would affect the effective tax rate if recognized | $ 40,700 |
RETIREMENT PLANS - Rate Assumpt
RETIREMENT PLANS - Rate Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plans | |||
Weighted-average rates assumed in the actuarial calculations for the pension plan | |||
Discount rate for benefit obligation (as percent) | 2.60% | 4.20% | 4.70% |
Discount rate for benefit cost (as percent) | 3.50% | 4.50% | 4.30% |
Annual salary increase (as a percent) | 6.50% | 6.50% | |
Expected long-term return on plan assets (as a percent) | 5.10% | 6.10% | 6.10% |
Postretirement Benefits | |||
Weighted-average rates assumed in the actuarial calculations for the pension plan | |||
Discount rate for benefit obligation (as percent) | 2.50% | 3.50% | 4.50% |
Discount rate for benefit cost (as percent) | 3.50% | 4.50% | 3.90% |
Postretirement Benefits | Medical benefit plan | |||
Health care cost trend rates | |||
Trend rate | 6.00% | ||
Ultimate rate | 4.00% | ||
Postretirement Benefits | Dental benefit plan | |||
Health care cost trend rates | |||
Ultimate rate | 4.00% |
RETIREMENT PLANS - Benefit Obli
RETIREMENT PLANS - Benefit Obligations and Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans | |||||
Projected benefit obligations: | |||||
Balance at beginning of year | $ 81,977 | $ 76,900 | |||
Service cost | 439 | 1,709 | $ 1,794 | ||
Interest cost | 2,585 | 3,472 | 3,279 | ||
Benefits and settlements paid | (4,791) | (5,738) | |||
Actuarial (gain) loss | 8,651 | 5,739 | |||
Settlement | (89) | (105) | |||
Balance at end of year | 88,772 | 81,977 | 76,900 | ||
Plan net assets: | |||||
Balance at beginning of year | 83,350 | 77,530 | |||
Actual return on plan assets | 10,398 | 10,678 | |||
Company contributions | 958 | 838 | |||
Benefits and settlements paid | (5,354) | (5,696) | |||
Balance at end of year | 89,352 | 83,350 | 77,530 | ||
Funded status of plan | |||||
Projected benefit obligation | 88,772 | 76,900 | 76,900 | $ 88,772 | $ 81,977 |
Plan Net Assets | 83,350 | 83,350 | 77,530 | 89,352 | 83,350 |
Over/ (Under) funded status of plan | 580 | 1,373 | |||
Pension Plans | GT&T Pension Benefit | |||||
Projected benefit obligations: | |||||
Balance at beginning of year | 15,594 | ||||
Balance at end of year | 15,609 | 15,594 | |||
Plan net assets: | |||||
Balance at beginning of year | 15,054 | ||||
Balance at end of year | 15,609 | 15,054 | |||
Funded status of plan | |||||
Projected benefit obligation | 15,594 | 15,594 | 15,609 | 15,594 | |
Plan Net Assets | 15,054 | 15,054 | 15,609 | 15,054 | |
Over/ (Under) funded status of plan | (540) | ||||
Pension Plans | Viya Pension Benefit | |||||
Projected benefit obligations: | |||||
Balance at beginning of year | 66,383 | ||||
Balance at end of year | 73,163 | 66,383 | |||
Plan net assets: | |||||
Balance at beginning of year | 68,296 | ||||
Balance at end of year | 73,743 | 68,296 | |||
Funded status of plan | |||||
Projected benefit obligation | 66,383 | 66,383 | 73,163 | 66,383 | |
Plan Net Assets | 68,296 | 68,296 | 73,743 | 68,296 | |
Over/ (Under) funded status of plan | 580 | 1,913 | |||
Postretirement Benefits | |||||
Projected benefit obligations: | |||||
Balance at beginning of year | 4,899 | 4,012 | |||
Service cost | 139 | 126 | 147 | ||
Interest cost | 163 | 182 | 161 | ||
Benefits and settlements paid | (450) | (354) | |||
Actuarial (gain) loss | 759 | 933 | |||
Balance at end of year | 5,510 | 4,899 | 4,012 | ||
Plan net assets: | |||||
Company contributions | 450 | 354 | |||
Benefits and settlements paid | (450) | (354) | |||
Funded status of plan | |||||
Projected benefit obligation | $ 4,899 | $ 4,899 | $ 4,012 | 5,510 | 4,899 |
Over/ (Under) funded status of plan | $ (5,510) | $ (4,899) |
RETIREMENT PLANS - Net Assets a
RETIREMENT PLANS - Net Assets and Allocations (Details) - Pension Plans - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension plan assets | |||
Fair value of plan assets | $ 89,352 | $ 83,350 | $ 77,530 |
Weighted-average asset allocations (as a percent) | 100.00% | 100.00% | |
Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 49,123 | $ 53,533 | |
Level 2 | |||
Pension plan assets | |||
Fair value of plan assets | 40,229 | 29,380 | |
Level 3 | |||
Pension plan assets | |||
Fair value of plan assets | 437 | ||
Cash, cash equivalents, money markets and other | |||
Pension plan assets | |||
Fair value of plan assets | $ 5,037 | $ 4,982 | |
Weighted-average asset allocations (as a percent) | 6.00% | 6.00% | |
Cash, cash equivalents, money markets and other | Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 5,037 | $ 4,982 | |
Common Stock | |||
Pension plan assets | |||
Fair value of plan assets | $ 27,785 | $ 26,702 | |
Weighted-average asset allocations (as a percent) | 31.00% | 32.00% | |
Common Stock | Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 24,781 | $ 22,451 | |
Common Stock | Level 2 | |||
Pension plan assets | |||
Fair value of plan assets | 3,004 | 4,251 | |
Mutual funds - fixed income | |||
Pension plan assets | |||
Fair value of plan assets | $ 9,494 | $ 12,970 | |
Weighted-average asset allocations (as a percent) | 11.00% | 16.00% | |
Mutual funds - fixed income | Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 9,494 | $ 12,970 | |
Mutual funds - equities | |||
Pension plan assets | |||
Fair value of plan assets | $ 8,278 | $ 10,921 | |
Weighted-average asset allocations (as a percent) | 9.00% | 13.00% | |
Mutual funds - equities | Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 8,278 | $ 10,921 | |
Fixed income securities | |||
Pension plan assets | |||
Fair value of plan assets | $ 37,225 | $ 26,307 | |
Weighted-average asset allocations (as a percent) | 41.00% | 32.00% | |
Fixed income securities | Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 1,178 | ||
Fixed income securities | Level 2 | |||
Pension plan assets | |||
Fair value of plan assets | $ 37,225 | 25,129 | |
Other | |||
Pension plan assets | |||
Fair value of plan assets | $ 1,533 | $ 1,468 | |
Weighted-average asset allocations (as a percent) | 2.00% | 1.00% | |
Other | Level 1 | |||
Pension plan assets | |||
Fair value of plan assets | $ 1,533 | $ 1,031 | |
Other | Level 3 | |||
Pension plan assets | |||
Fair value of plan assets | $ 437 |
RETIREMENT PLANS - Amounts in C
RETIREMENT PLANS - Amounts in Consolidated Financials (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plans | ||
Amounts recognized on the consolidated balance sheets | ||
Other Liabilities | $ 540 | |
Other Assets | $ 580 | 1,913 |
Accumulated other comprehensive income (loss), net of tax | (158) | 1,484 |
Amounts recognized in accumulated other comprehensive loss | ||
Unrecognized net actuarial gain | (1,159) | 540 |
Accumulated other comprehensive income, pre-tax | (1,159) | 540 |
Accumulated other comprehensive income (loss), net of tax | (158) | 1,484 |
Postretirement Benefits | ||
Amounts recognized on the consolidated balance sheets | ||
Accrued and current liabilities | 381 | 340 |
Other Liabilities | 5,129 | 4,559 |
Accumulated other comprehensive income (loss), net of tax | (411) | 359 |
Amounts recognized in accumulated other comprehensive loss | ||
Unrecognized net actuarial gain | (411) | 359 |
Accumulated other comprehensive income, pre-tax | (411) | 359 |
Accumulated other comprehensive income (loss), net of tax | $ (411) | $ 359 |
RETIREMENT PLANS - Net Periodic
RETIREMENT PLANS - Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plans | |||
Components of the plan's net periodic pension cost | |||
Service cost | $ 439 | $ 1,709 | $ 1,794 |
Interest cost | 2,585 | 3,472 | 3,279 |
Expected return on plan assets | (3,060) | (4,571) | (4,835) |
Amortization of actuarial (gain) loss | 29 | 121 | |
Settlement | 89 | (35) | |
Net periodic pension expense | 53 | 604 | 359 |
Postretirement Benefits | |||
Components of the plan's net periodic pension cost | |||
Service cost | 139 | 126 | 147 |
Interest cost | 163 | 182 | 161 |
Amortization of actuarial (gain) loss | (11) | (58) | (67) |
Net periodic pension expense | $ 291 | $ 250 | $ 241 |
RETIREMENT PLANS - Expected fut
RETIREMENT PLANS - Expected future service (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Pension Plans | |
Estimated Pension Benefits | |
2021 | $ 19,691 |
2022 | 3,730 |
2023 | 3,703 |
2024 | 4,048 |
2025 | 3,706 |
2026- 2030 | 19,058 |
Total | 53,936 |
Postretirement Benefits | |
Estimated Pension Benefits | |
2021 | 386 |
2022 | 359 |
2023 | 276 |
2024 | 319 |
2025 | 356 |
2026- 2030 | 1,679 |
Total | $ 3,375 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Oct. 05, 2020item | Dec. 31, 2020USD ($) | Dec. 31, 2011USD ($) |
Contingency related to spectrum fees | |||
Commitments and contingencies | |||
Spectrum fees paid | $ 2.6 | ||
Litigation proceedings and disputes in Guyana | |||
Commitments and contingencies | |||
Number of competitors issued service licenses | item | 2 | ||
Legal claims regarding tax filings with the Guyana Revenue Authority | |||
Commitments and contingencies | |||
Future payments related to disputed tax assessments | $ 44.1 | ||
Accrued contingent liability | $ 5 | ||
Legal claims regarding tax filings with the Guyana Revenue Authority | Minimum | |||
Commitments and contingencies | |||
Percentage of return on investment ensured by the government of Guyana | 15.00% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Other Obligations (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Contractual obligation | |
2021 | $ 22,771 |
2022 | 16,065 |
2023 | 11,463 |
2024 | 10,416 |
2025 | 1,143 |
Thereafter | 1,838 |
Total obligations | $ 63,696 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment reporting | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Revenue | |||||||||||
Revenue | $ 123,702 | $ 111,739 | $ 109,098 | $ 110,905 | $ 112,085 | $ 115,616 | $ 107,721 | $ 103,300 | $ 455,444 | $ 438,722 | $ 451,207 |
Depreciation and amortization | 88,311 | 89,125 | 85,719 | ||||||||
Non-cash stock-based compensation | 5,912 | 6,384 | 6,420 | ||||||||
Operating income (loss) | (14,700) | $ 9,557 | $ 7,024 | $ 7,299 | (1,739) | $ 10,248 | $ 2,754 | $ 2,114 | 9,180 | 13,377 | 61,023 |
Segment Assets | |||||||||||
Cash, Cash equivalents, and Investments | 103,925 | 161,703 | 103,925 | 161,703 | |||||||
Total current assets | 240,065 | 228,723 | 240,065 | 228,723 | |||||||
Fixed assets, net | 536,462 | 605,581 | 536,462 | 605,581 | |||||||
Goodwill | 60,691 | 60,691 | 60,691 | 60,691 | 63,970 | ||||||
Total assets | 1,083,711 | 1,130,726 | 1,083,711 | 1,130,726 | |||||||
Total current liabilities | 147,928 | 119,669 | 147,928 | 119,669 | |||||||
Total debt | 72,823 | 86,426 | 72,823 | 86,426 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 75,323 | 72,725 | |||||||||
Communication services | |||||||||||
Revenue | |||||||||||
Revenue | 433,509 | 428,108 | 425,323 | ||||||||
Mobility | |||||||||||
Revenue | |||||||||||
Revenue | 92,762 | 95,092 | 96,911 | ||||||||
Fixed | |||||||||||
Revenue | |||||||||||
Revenue | 252,644 | 238,745 | 221,625 | ||||||||
Carrier services | |||||||||||
Revenue | |||||||||||
Revenue | 86,568 | 92,976 | 104,707 | ||||||||
Other | |||||||||||
Revenue | |||||||||||
Revenue | 1,535 | 1,295 | 2,080 | ||||||||
Other | |||||||||||
Revenue | |||||||||||
Revenue | 21,935 | 10,614 | 25,884 | ||||||||
Renewable Energy | |||||||||||
Revenue | |||||||||||
Revenue | 4,555 | 5,534 | 22,158 | ||||||||
Managed Services | |||||||||||
Revenue | |||||||||||
Revenue | 6,467 | 5,080 | 3,726 | ||||||||
Construction | |||||||||||
Revenue | |||||||||||
Revenue | 10,913 | ||||||||||
Corporate and Other | |||||||||||
Revenue | |||||||||||
Depreciation and amortization | 6,486 | 6,708 | 5,626 | ||||||||
Non-cash stock-based compensation | 5,586 | 5,892 | 6,227 | ||||||||
Operating income (loss) | (32,523) | (34,365) | (34,252) | ||||||||
Segment Assets | |||||||||||
Cash, Cash equivalents, and Investments | 26,845 | 55,284 | 26,845 | 55,284 | |||||||
Total current assets | 27,887 | 55,485 | 27,887 | 55,485 | |||||||
Fixed assets, net | 12,857 | 21,453 | 12,857 | 21,453 | |||||||
Total assets | 136,035 | 184,419 | 136,035 | 184,419 | |||||||
Total current liabilities | 22,815 | 14,375 | 22,815 | 14,375 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 3,613 | 6,758 | |||||||||
International Telecom | |||||||||||
Segment Assets | |||||||||||
Goodwill | 24,326 | 24,326 | 24,326 | 24,326 | 24,326 | ||||||
International Telecom | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 328,633 | 324,539 | 313,569 | ||||||||
Depreciation and amortization | 56,284 | 55,993 | 48,889 | ||||||||
Non-cash stock-based compensation | 49 | 405 | 88 | ||||||||
Operating income (loss) | 58,064 | 46,921 | 45,022 | ||||||||
Segment Assets | |||||||||||
Cash, Cash equivalents, and Investments | 45,848 | 43,125 | 45,848 | 43,125 | |||||||
Total current assets | 107,315 | 91,497 | 107,315 | 91,497 | |||||||
Fixed assets, net | 449,888 | 466,523 | 449,888 | 466,523 | |||||||
Goodwill | 25,421 | 25,421 | 25,421 | 25,421 | |||||||
Total assets | 642,834 | 647,228 | 642,834 | 647,228 | |||||||
Total current liabilities | 80,875 | 77,644 | 80,875 | 77,644 | |||||||
Total debt | 72,823 | 86,426 | 72,823 | 86,426 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 38,895 | 42,029 | |||||||||
International Telecom | Operating segments | Communication services | |||||||||||
Revenue | |||||||||||
Revenue | 322,166 | 319,459 | 309,843 | ||||||||
International Telecom | Operating segments | Mobility | |||||||||||
Revenue | |||||||||||
Revenue | 83,136 | 84,560 | 85,152 | ||||||||
International Telecom | Operating segments | Fixed | |||||||||||
Revenue | |||||||||||
Revenue | 230,375 | 224,534 | 213,765 | ||||||||
International Telecom | Operating segments | Carrier services | |||||||||||
Revenue | |||||||||||
Revenue | 7,120 | 9,070 | 8,846 | ||||||||
International Telecom | Operating segments | Other | |||||||||||
Revenue | |||||||||||
Revenue | 1,535 | 1,295 | 2,080 | ||||||||
International Telecom | Operating segments | Other | |||||||||||
Revenue | |||||||||||
Revenue | 6,467 | 5,080 | 3,726 | ||||||||
International Telecom | Operating segments | Managed Services | |||||||||||
Revenue | |||||||||||
Revenue | 6,467 | 5,080 | 3,726 | ||||||||
US Telecom | |||||||||||
Segment Assets | |||||||||||
Goodwill | 35,268 | 35,268 | 35,268 | 35,268 | 35,268 | ||||||
US Telecom | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 122,256 | 108,649 | 115,480 | ||||||||
Depreciation and amortization | 23,325 | 23,119 | 24,615 | ||||||||
Non-cash stock-based compensation | 15 | ||||||||||
Operating income (loss) | 7,388 | 8,064 | 36,813 | ||||||||
Segment Assets | |||||||||||
Cash, Cash equivalents, and Investments | 26,921 | 38,240 | 26,921 | 38,240 | |||||||
Total current assets | 65,806 | 54,207 | 65,806 | 54,207 | |||||||
Fixed assets, net | 73,717 | 69,184 | 73,717 | 69,184 | |||||||
Goodwill | 35,270 | 35,270 | 35,270 | 35,270 | |||||||
Total assets | 265,797 | 222,356 | 265,797 | 222,356 | |||||||
Total current liabilities | 43,200 | 24,905 | 43,200 | 24,905 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 29,883 | 17,490 | |||||||||
US Telecom | Operating segments | Communication services | |||||||||||
Revenue | |||||||||||
Revenue | 111,343 | 108,649 | 115,480 | ||||||||
US Telecom | Operating segments | Mobility | |||||||||||
Revenue | |||||||||||
Revenue | 9,626 | 10,532 | 11,759 | ||||||||
US Telecom | Operating segments | Fixed | |||||||||||
Revenue | |||||||||||
Revenue | 22,269 | 14,211 | 7,860 | ||||||||
US Telecom | Operating segments | Carrier services | |||||||||||
Revenue | |||||||||||
Revenue | 79,448 | 83,906 | 95,861 | ||||||||
US Telecom | Operating segments | Other | |||||||||||
Revenue | |||||||||||
Revenue | 10,913 | ||||||||||
US Telecom | Operating segments | Construction | |||||||||||
Revenue | |||||||||||
Revenue | 10,913 | ||||||||||
Renewable Energy | |||||||||||
Segment Assets | |||||||||||
Goodwill | 0 | 0 | 0 | 0 | 3,279 | ||||||
Renewable Energy | Operating segments | |||||||||||
Revenue | |||||||||||
Revenue | 4,555 | 5,534 | 22,158 | ||||||||
Depreciation and amortization | 2,216 | 3,305 | 6,589 | ||||||||
Non-cash stock-based compensation | 262 | 87 | 105 | ||||||||
Operating income (loss) | (23,749) | (7,243) | 13,440 | ||||||||
Segment Assets | |||||||||||
Cash, Cash equivalents, and Investments | 4,311 | 25,054 | 4,311 | 25,054 | |||||||
Total current assets | 39,057 | 27,534 | 39,057 | 27,534 | |||||||
Fixed assets, net | 48,421 | 48,421 | |||||||||
Total assets | 39,045 | 76,723 | 39,045 | 76,723 | |||||||
Total current liabilities | $ 1,038 | $ 2,745 | 1,038 | 2,745 | |||||||
Capital Expenditures | |||||||||||
Capital expenditures | 2,932 | 6,448 | |||||||||
Renewable Energy | Operating segments | Other | |||||||||||
Revenue | |||||||||||
Revenue | 4,555 | 5,534 | 22,158 | ||||||||
Renewable Energy | Operating segments | Renewable Energy | |||||||||||
Revenue | |||||||||||
Revenue | $ 4,555 | $ 5,534 | $ 22,158 |
SEGMENT REPORTING - Revenue and
SEGMENT REPORTING - Revenue and Assets (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 | |
Revenue and long lived assets | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 123,702 | $ 111,739 | $ 109,098 | $ 110,905 | $ 112,085 | $ 115,616 | $ 107,721 | $ 103,300 | $ 455,444 | $ 438,722 | $ 451,207 |
Long-Lived Assets | 843,647 | 902,002 | 843,647 | 902,002 | 831,538 | ||||||
U.S | |||||||||||
Revenue and long lived assets | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 122,256 | 123,508 | 132,288 | ||||||||
Long-Lived Assets | 308,138 | 297,084 | 308,138 | 297,084 | 234,514 | ||||||
Guyana | |||||||||||
Revenue and long lived assets | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 103,071 | 105,290 | 102,056 | ||||||||
Long-Lived Assets | 141,487 | 145,079 | 141,487 | 145,079 | 151,084 | ||||||
U.S. Virgin Islands | |||||||||||
Revenue and long lived assets | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 90,368 | 83,795 | 79,785 | ||||||||
Long-Lived Assets | 230,630 | 235,384 | 230,630 | 235,384 | 216,173 | ||||||
Bermuda | |||||||||||
Revenue and long lived assets | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 103,471 | 104,760 | 103,281 | ||||||||
Long-Lived Assets | 116,346 | 128,208 | 116,346 | 128,208 | 137,992 | ||||||
Other Foreign Countries | |||||||||||
Revenue and long lived assets | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 36,278 | 21,369 | 33,797 | ||||||||
Long-Lived Assets | $ 47,045 | $ 96,247 | $ 47,045 | $ 96,247 | $ 91,775 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (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 data | |||||||||||
Total revenue | $ 123,702 | $ 111,739 | $ 109,098 | $ 110,905 | $ 112,085 | $ 115,616 | $ 107,721 | $ 103,300 | $ 455,444 | $ 438,722 | $ 451,207 |
Operating expenses | 138,402 | 102,182 | 102,074 | 103,606 | 113,824 | 105,368 | 104,967 | 101,186 | 446,264 | 425,345 | 390,184 |
Income from operations | (14,700) | 9,557 | 7,024 | 7,299 | (1,739) | 10,248 | 2,754 | 2,114 | 9,180 | 13,377 | 61,023 |
Other income (expense), net | (1,081) | (3,274) | (918) | (3,814) | (2,568) | (3,570) | (1,001) | (166) | (9,087) | (7,305) | (7,281) |
INCOME BEFORE INCOME TAXES | (15,781) | 6,283 | 6,106 | 3,485 | (4,307) | 6,678 | 1,753 | 1,948 | 93 | 6,072 | 53,742 |
Income taxes | 1,858 | 92 | (2,258) | 1,109 | 1,332 | 1,834 | (274) | 1,213 | 801 | 4,105 | 18,870 |
NET INCOME | (17,639) | 6,191 | 8,364 | 2,376 | (5,639) | 4,844 | 2,027 | 735 | (708) | 1,967 | 34,872 |
Net income attributable to non-controlling interests, net of tax | (2,876) | (3,530) | (3,618) | (3,390) | (4,115) | (3,459) | (2,883) | (2,316) | (13,414) | (12,773) | (15,057) |
NET INCOME (LOSS) ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS | $ (20,515) | $ 2,661 | $ 4,746 | $ (1,014) | $ (9,754) | $ 1,385 | $ (856) | $ (1,581) | $ (14,122) | $ (10,806) | $ 19,815 |
NET INCOME (LOSS) PER WEIGHTED AVERAGE SHARE ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS: | |||||||||||
Basic (in dollars per share) | $ (1.30) | $ 0.17 | $ 0.30 | $ (0.06) | $ (0.62) | $ 0.09 | $ (0.05) | $ (0.10) | $ (0.89) | $ (0.68) | $ 1.24 |
Diluted (in dollars per share) | $ (1.30) | $ 0.17 | $ 0.30 | $ (0.06) | $ (0.62) | $ 0.09 | $ (0.05) | $ (0.10) | $ (0.89) | $ (0.68) | $ 1.24 |
SCHEDULE II VALUATION AND QUA_2
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 52,130 | $ 47,904 | $ 50,852 |
Charged to Costs and Expenses | 5,785 | 16,627 | 904 |
Deductions | 14,780 | 12,401 | 3,852 |
Balance at End of Year | 43,135 | 52,130 | 47,904 |
Valuation allowance on foreign tax credit carryforwards | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 8,226 | ||
Charged to Costs and Expenses | (8,226) | ||
Valuation allowance on capital loss carryforwards | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 1,881 | ||
Charged to Costs and Expenses | (1,881) | ||
Valuation allowance on foreign net operating losses and other deferred taxes | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 39,406 | 31,442 | 25,722 |
Charged to Costs and Expenses | 775 | 10,811 | 5,877 |
Deductions | 9,167 | 2,847 | 157 |
Balance at End of Year | 31,014 | 39,406 | 31,442 |
Allowance for credit losses | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | 12,724 | 16,462 | 15,023 |
Charged to Costs and Expenses | 5,010 | 5,816 | 5,134 |
Deductions | 5,613 | 9,554 | 3,695 |
Balance at End of Year | $ 12,121 | $ 12,724 | $ 16,462 |