Annual report pursuant to Section 13 and 15(d)

Net Property and Equipment

v3.8.0.1
Net Property and Equipment
 12 Months Ended
Dec. 31, 2017
Property, Plant and Equipment [Abstract]  
Net Property and Equipment
Net Property and Equipment
Net property and equipment consists of the following at December 31, 2017 and 2016 (amounts in thousands):
 
2017
 
2016
Land and buildings
$
119,553

 
114,966

Telephony transmission equipment and distribution facilities
1,402,610

 
1,271,425

Cable transmission equipment and distribution facilities
285,665

 
231,539

Studio equipment
14,825

 
15,456

Support equipment and systems
299,511

 
290,209

Transportation equipment
23,468

 
23,674

Customer premise equipment
152,731

 
158,513

Fiber optic cable systems
353,291

 
351,460

Construction in progress
103,013

 
157,633

 
2,754,667

 
2,614,875

Less accumulated depreciation
1,541,264

 
1,385,620

Less accumulated amortization on property and equipment under capital leases
58,692

 
67,337

Net property and equipment
$
1,154,711

 
1,161,918

 
 
 
 
Gross property and equipment under capital leases
$
112,495

 
112,495



KKCC Asset Acquisition
In November 2016, we acquired Kodiak-Kenai Cable Company, LLC ("KKCC") which through its wholly owned subsidiary owns the only low latency redundant fiber link between Anchorage, the Kenai Peninsula and Kodiak. We adopted ASU 2017-01, which allows us to treat the acquisition of KKCC as an asset acquisition.

Total consideration transferred to the previous owners of KKCC consisted of a cash payment of $19.7 million and the fair market value of $14.1 million for indefeasible right-to-use capacity that we owned on the KKCC fiber system ("IRU Capacity") that was terminated as a result of the acquisition. The IRU Capacity included as consideration was adjusted to fair value as of the acquisition date resulting in a $3.1 million gain recorded in Other Income (Expense) in our Consolidated Statement of Operations for the year ended December 31, 2016.

We allocated the total consideration transferred to the acquired assets and liabilities assumed based on the relative fair value. The following table summarizes the allocation of total consideration (amounts in thousands):
Allocation of consideration to assets acquired and liabilities assumed:
 
Property and equipment
$
49,794

Deferred taxes
(12,211
)
Deferred revenue
(3,815
)
Total consideration
$
33,768