|
Business and Summary of Significant Accounting Principles (Tables)
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12 Months Ended |
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Dec. 31, 2014
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| Accounting Policies [Abstract] |
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| Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
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Purchase price: |
|
Previously Reported |
Adjustments |
Final Purchase Price Allocation |
Cash consideration paid |
|
$ |
100,000 |
|
— |
|
100,000 |
|
Fair value of the one-third ownership interest of AWN |
|
267,642 |
|
(2,131 |
) |
265,511 |
|
Total purchase price |
|
$ |
367,642 |
|
(2,131 |
) |
365,511 |
|
|
|
|
|
|
Assets acquired and liabilities assumed: |
|
|
|
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Acquired assets |
|
|
|
|
Current assets |
|
$ |
16,952 |
|
11 |
|
16,963 |
|
Property and equipment, including construction in progress |
|
82,473 |
|
138 |
|
82,611 |
|
Goodwill |
|
140,081 |
|
8,867 |
|
148,948 |
|
Wireless licenses |
|
65,433 |
|
(5,053 |
) |
60,380 |
|
Rights to use capacity |
|
52,636 |
|
(7,298 |
) |
45,338 |
|
Other assets |
|
16,078 |
|
1,204 |
|
17,282 |
|
Fair value of liabilities assumed |
|
(6,011 |
) |
— |
|
(6,011 |
) |
Total fair value of assets acquired and liabilities assumed |
|
$ |
367,642 |
|
(2,131 |
) |
365,511 |
|
|
| Pro Forma Information |
The following unaudited pro forma financial information is presented as if the acquisition occurred on January 1, 2012 (amounts in thousands):
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|
|
|
|
|
|
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(unaudited) |
|
Years Ended
December 31, |
|
2013 |
|
2012 |
Pro forma consolidated revenue |
$ |
897,270 |
|
|
848,676 |
|
|
| Schedule of Calculation of Numerator and Denominator in Earnings Per Share |
Earnings per common share (“EPS”) and common shares used to calculate basic and diluted EPS consist of the following (amounts in thousands, except per share amounts):
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Year Ended December 31, 2014 |
|
Class A |
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Class B |
Basic net income per share: |
|
|
|
Numerator: |
|
|
|
Allocation of undistributed earnings |
$ |
6,980 |
|
|
577 |
|
|
|
|
|
Denominator: |
|
|
|
Weighted average common shares outstanding |
38,219 |
|
|
3,162 |
|
Basic net income attributable to GCI common stockholders per common share |
$ |
0.18 |
|
|
0.18 |
|
|
|
|
|
Diluted net income per share: |
|
|
|
Numerator: |
|
|
|
Allocation of undistributed earnings for basic computation |
$ |
6,980 |
|
|
577 |
|
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares |
577 |
|
|
— |
|
Effect of share based compensation that may be settled in cash or shares |
— |
|
|
(2 |
) |
Net income adjusted for allocation of undistributed earnings |
$ |
7,557 |
|
|
575 |
|
|
|
|
|
Denominator: |
|
|
|
Number of shares used in basic computation |
38,219 |
|
|
3,162 |
|
Conversion of Class B to Class A common shares outstanding |
3,162 |
|
|
— |
|
Unexercised stock options |
112 |
|
|
— |
|
Number of shares used in per share computation |
41,493 |
|
|
3,162 |
|
Diluted net income attributable to GCI common stockholders per common share |
$ |
0.18 |
|
|
0.18 |
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|
|
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|
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Years Ended December 31, |
|
2013 |
|
2012 |
|
Class A |
|
Class B |
|
Class A |
|
Class B |
Basic net income per share: |
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
Allocation of undistributed earnings |
$ |
8,678 |
|
|
728 |
|
|
8,938 |
|
|
735 |
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
Weighted average common shares outstanding |
37,732 |
|
|
3,166 |
|
|
38,560 |
|
|
3,170 |
|
Basic net income attributable to GCI common stockholders per common share |
$ |
0.23 |
|
|
0.23 |
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|
0.23 |
|
|
0.23 |
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|
|
|
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|
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Diluted net income per share: |
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
Allocation of undistributed earnings for basic computation |
$ |
8,678 |
|
|
728 |
|
|
8,938 |
|
|
735 |
|
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares |
728 |
|
|
— |
|
|
735 |
|
|
— |
|
Reallocation of undistributed earnings as a result of conversion of dilutive securities |
— |
|
|
(3 |
) |
|
— |
|
|
(8 |
) |
Effect of share based compensation that may be settled in cash or shares |
— |
|
|
— |
|
|
(13 |
) |
|
— |
|
Net income adjusted for allocation of undistributed earnings and effect of share based compensation that may be settled in cash or shares |
$ |
9,406 |
|
|
725 |
|
|
9,660 |
|
|
727 |
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
Number of shares used in basic computation |
37,732 |
|
|
3,166 |
|
|
38,560 |
|
|
3,170 |
|
Conversion of Class B to Class A common shares outstanding |
3,166 |
|
|
— |
|
|
3,170 |
|
|
— |
|
Unexercised stock options |
142 |
|
|
— |
|
|
158 |
|
|
— |
|
Effect of share based compensation that may be settled in cash or shares |
— |
|
|
— |
|
|
231 |
|
|
— |
|
Number of shares used in per share computation |
41,040 |
|
|
3,166 |
|
|
42,119 |
|
|
3,170 |
|
Diluted net income attributable to GCI common stockholders per common share |
$ |
0.23 |
|
|
0.23 |
|
|
0.23 |
|
|
0.23 |
|
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| Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
Weighted average shares associated with outstanding share awards for the years ended December 31, 2014, 2013 and 2012 which have been excluded from the computations of diluted EPS, because the effect of including these share awards would have been anti-dilutive, consist of the following (shares, in thousands):
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|
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|
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Years Ended December 31, |
|
2014 |
|
2013 |
|
2012 |
Shares associated with anti-dilutive unexercised stock options |
29 |
|
|
86 |
|
|
88 |
|
Share-based compensation that may be settled in cash or shares, the effect of which is anti-dilutive |
26 |
|
|
90 |
|
|
— |
|
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| Schedule of Contingent Awards |
Shares associated with contingent awards for the years ended December 31, 2014, 2013 and 2012, which have been excluded from the computations of diluted EPS because the contingencies of these awards have not been met at December 31, 2014, 2013 and 2012, consist of the following (shares in thousands):
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|
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Years Ended December 31, |
|
2014 |
|
2013 |
|
2012 |
Shares associated with contingent awards |
— |
|
|
— |
|
|
58 |
|
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| Schedule of Stock by Class |
Following are the changes in issued common stock for the years ended December 31, 2014, 2013 and 2012 (shares, in thousands):
|
|
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|
|
|
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Class A |
|
Class B |
Balances at January 1, 2012 |
39,296 |
|
|
3,171 |
|
Class B shares converted to Class A |
2 |
|
|
(2 |
) |
Shares issued upon stock option exercises |
320 |
|
|
— |
|
Share awards issued |
731 |
|
|
— |
|
Shares repurchased and retired |
(1,469 |
) |
|
— |
|
Shares acquired to settle minimum statutory tax withholding requirements and subsequently retired |
(337 |
) |
|
— |
|
Other |
(9 |
) |
|
— |
|
Balances at December 31, 2012 |
38,534 |
|
|
3,169 |
|
Class B shares converted to Class A |
4 |
|
|
(4 |
) |
Shares issued upon stock option exercises |
87 |
|
|
— |
|
Share awards issued |
680 |
|
|
— |
|
Shares repurchased and retired |
(1,822 |
) |
|
— |
|
Shares acquired to settle minimum statutory tax withholding requirements and subsequently retired |
(147 |
) |
|
— |
|
Other |
(37 |
) |
|
— |
|
Balances at December 31, 2013 |
37,299 |
|
|
3,165 |
|
Class B shares converted to Class A |
6 |
|
|
(6 |
) |
Shares issued upon stock option exercises |
51 |
|
|
— |
|
Share awards issued |
1,267 |
|
|
— |
|
Shares repurchased and retired |
(429 |
) |
|
— |
|
Shares acquired to settle minimum statutory tax withholding requirements and subsequently retired |
(196 |
) |
|
— |
|
Balances at December 31, 2014 |
37,998 |
|
|
3,159 |
|
|
| Property Plant and Equipment Useful Life |
Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable, in the following ranges:
|
|
|
Asset Category |
Asset Lives |
Telephony transmission equipment and distribution facilities |
5-20 years |
Fiber optic cable systems |
15-25 years |
Cable transmission equipment and distribution facilities |
5-30 years |
Support equipment and systems |
3-20 years |
Transportation equipment |
5-13 years |
Property and equipment under capital leases |
12-20 years |
Buildings |
25 years |
Customer premise equipment |
2-20 years |
Studio equipment |
10-15 years |
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| Schedule of Asset Retirement Obligations |
Following is a reconciliation of the beginning and ending aggregate carrying amounts of our liability for asset retirement obligations (amounts in thousands):
|
|
|
|
|
Balance at December 31, 2012 |
$ |
16,280 |
|
Liability incurred |
5,292 |
|
Additions upon the close of AWN |
5,218 |
|
Accretion expense |
77 |
|
Liability settled |
(65 |
) |
Balance at December 31, 2013 |
26,802 |
|
Liability incurred |
4,268 |
|
Accretion expense |
1,249 |
|
Revision in estimate |
(355 |
) |
Liability settled |
(24 |
) |
Balance at December 31 2014 |
$ |
31,940 |
|
|
| Excise and Sales Taxes |
The following are certain surcharges reported on a gross basis in our Consolidated Income Statements (amounts in thousands):
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Years Ended December 31, |
|
2014 |
|
2013 |
|
2012 |
Surcharges reported gross |
$ |
4,252 |
|
|
4,644 |
|
|
5,401 |
|
|