þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the quarterly period ended September 30, 2016 | ||
or | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the transition period from to | ||
Commission file number 001-37488 |
Delaware | 91-1671412 | |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) | |
incorporation or organization) | ||
1875 Explorer Street, Suite 800 Reston, Virginia (Address of principal executive offices) | 20190 (Zip Code) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
Number of Shares Outstanding | |
Title of Class | on November 11, 2016 |
Common Stock, $0.001 par value per share | 100,783,074 |
Page | ||
NII HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par values) Unaudited | |||||||
Successor Company | |||||||
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 289,749 | $ | 342,184 | |||
Short-term investments | 21,985 | 84,317 | |||||
Accounts receivable, net of allowance for doubtful accounts of $55,021 and $39,033 | 162,907 | 144,629 | |||||
Handset and accessory inventory | 12,351 | 24,358 | |||||
Prepaid expenses and other | 294,094 | 132,534 | |||||
Total current assets | 781,086 | 728,022 | |||||
Property, plant and equipment, net | 121,051 | 555,023 | |||||
Intangible assets, net | 269,398 | 892,622 | |||||
Other assets | 305,331 | 554,241 | |||||
Total assets | $ | 1,476,866 | $ | 2,729,908 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities | |||||||
Accounts payable | $ | 49,081 | $ | 43,765 | |||
Accrued expenses and other | 390,763 | 268,858 | |||||
Deferred revenues | 8,381 | 10,386 | |||||
Current portion of long-term debt | 560,123 | 582,420 | |||||
Total current liabilities | 1,008,348 | 905,429 | |||||
Long-term debt | 96,741 | 82,647 | |||||
Other long-term liabilities | 117,608 | 197,837 | |||||
Total liabilities | 1,222,697 | 1,185,913 | |||||
Commitments and contingencies (Note 8) | |||||||
Stockholders’ equity | |||||||
Undesignated preferred stock, par value $0.001, 10,000 shares authorized, no shares issued or outstanding | — | — | |||||
Common stock, par value $0.001, 140,000 shares authorized, 100,150 shares issued and outstanding — 2016, 100,001 shares issued and outstanding — 2015 | 100 | 100 | |||||
Paid-in capital | 2,075,111 | 2,070,497 | |||||
Accumulated deficit | (1,746,285 | ) | (280,883 | ) | |||
Accumulated other comprehensive loss | (74,757 | ) | (245,719 | ) | |||
Total stockholders’ equity | 254,169 | 1,543,995 | |||||
Total liabilities and stockholders’ equity | $ | 1,476,866 | $ | 2,729,908 |
NII HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (in thousands, except per share amounts) Unaudited | ||||||||||||||||
Successor Company | Predecessor Company | |||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||
September 30, 2016 | September 30, 2016 | September 30, 2015 | June 30, 2015 | |||||||||||||
Operating revenues | ||||||||||||||||
Service and other revenues | $ | 255,663 | $ | 719,387 | $ | 266,487 | $ | 643,904 | ||||||||
Handset and accessory revenues | 5,173 | 17,219 | 18,165 | 39,807 | ||||||||||||
260,836 | 736,606 | 284,652 | 683,711 | |||||||||||||
Operating expenses | ||||||||||||||||
Cost of service (exclusive of depreciation and amortization included below) | 96,526 | 268,460 | 112,179 | 256,085 | ||||||||||||
Cost of handsets and accessories | 5,780 | 25,807 | 28,307 | 121,143 | ||||||||||||
Selling, general and administrative | 142,816 | 412,149 | 168,804 | 419,699 | ||||||||||||
Impairment, restructuring and other charges | 1,324,205 | 1,340,677 | 4,715 | 36,792 | ||||||||||||
Depreciation | 66,293 | 126,063 | 36,353 | 126,789 | ||||||||||||
Amortization | 11,912 | 32,961 | 11,946 | 27,089 | ||||||||||||
1,647,532 | 2,206,117 | 362,304 | 987,597 | |||||||||||||
Operating loss | (1,386,696 | ) | (1,469,511 | ) | (77,652 | ) | (303,886 | ) | ||||||||
Other (expense) income | ||||||||||||||||
Interest expense, net | (29,451 | ) | (81,854 | ) | (28,878 | ) | (82,820 | ) | ||||||||
Interest income | 9,199 | 29,725 | 8,597 | 15,327 | ||||||||||||
Foreign currency transaction (losses) gains, net | (5,221 | ) | 77,777 | (106,617 | ) | (63,948 | ) | |||||||||
Other (expense) income, net | (2,073 | ) | (7,015 | ) | 927 | (137 | ) | |||||||||
(27,546 | ) | 18,633 | (125,971 | ) | (131,578 | ) | ||||||||||
Loss from continuing operations before reorganization items and income tax provision | (1,414,242 | ) | (1,450,878 | ) | (203,623 | ) | (435,464 | ) | ||||||||
Reorganization items (Note 2) | (150 | ) | (748 | ) | 2,144 | 1,956,874 | ||||||||||
Income tax benefit (provision) | 2,838 | 2,469 | (470 | ) | (2,009 | ) | ||||||||||
Net (loss) income from continuing operations | (1,411,554 | ) | (1,449,157 | ) | (201,949 | ) | 1,519,401 | |||||||||
(Loss) income from discontinued operations, net of income taxes | (7,389 | ) | (16,245 | ) | 12,528 | 221,114 | ||||||||||
Net (loss) income | $ | (1,418,943 | ) | $ | (1,465,402 | ) | $ | (189,421 | ) | $ | 1,740,515 | |||||
Net (loss) income from continuing operations per common share, basic | $ | (14.10 | ) | $ | (14.49 | ) | $ | (2.02 | ) | $ | 8.73 | |||||
Net (loss) income from discontinued operations per common share, basic | (0.07 | ) | (0.16 | ) | 0.12 | 1.27 | ||||||||||
Net (loss) income per common share, basic | $ | (14.17 | ) | $ | (14.65 | ) | $ | (1.89 | ) | $ | 10.00 | |||||
Net (loss) income from continuing operations per common share, diluted | $ | (14.10 | ) | $ | (14.49 | ) | $ | (2.02 | ) | $ | 8.71 | |||||
Net (loss) income from discontinued operations per common share, diluted | (0.07 | ) | (0.16 | ) | 0.12 | 1.27 | ||||||||||
Net (loss) income per common share, diluted | $ | (14.17 | ) | $ | (14.65 | ) | $ | (1.89 | ) | $ | 9.98 | |||||
Weighted average number of common shares outstanding, basic | 100,143 | 100,054 | 100,000 | 172,363 | ||||||||||||
Weighted average number of common shares outstanding, diluted | 100,143 | 100,054 | 100,000 | 172,691 | ||||||||||||
Comprehensive (loss) income, net of income taxes | ||||||||||||||||
Foreign currency translation adjustment | $ | (18,031 | ) | $ | 170,962 | $ | (264,932 | ) | $ | (205,899 | ) | |||||
Reclassification adjustment for sales of Nextel Mexico and Nextel Argentina | — | — | (1,672 | ) | 421,953 | |||||||||||
Other | — | — | 4,734 | 2,956 | ||||||||||||
Other comprehensive (loss) income | (18,031 | ) | 170,962 | (261,870 | ) | 219,010 | ||||||||||
Net (loss) income | (1,418,943 | ) | (1,465,402 | ) | (189,421 | ) | 1,740,515 | |||||||||
Total comprehensive (loss) income | $ | (1,436,974 | ) | $ | (1,294,440 | ) | $ | (451,291 | ) | $ | 1,959,525 |
NII HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (in thousands) Unaudited | ||||||||||||||||||||||
Common Stock | Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
Balance, December 31, 2015 — Successor Company | 100,001 | $ | 100 | $ | 2,070,497 | $ | (280,883 | ) | $ | (245,719 | ) | $ | 1,543,995 | |||||||||
Net loss | — | — | (1,465,402 | ) | — | (1,465,402 | ) | |||||||||||||||
Other comprehensive income | — | — | — | 170,962 | 170,962 | |||||||||||||||||
Share-based compensation activity | 149 | — | 4,614 | — | — | 4,614 | ||||||||||||||||
Balance, September 30, 2016 — Successor Company | 100,150 | $ | 100 | $ | 2,075,111 | $ | (1,746,285 | ) | $ | (74,757 | ) | $ | 254,169 |
NII HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Unaudited | ||||||||||||
Successor Company | Predecessor Company | |||||||||||
Nine Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | Six Months Ended June 30, 2015 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net (loss) income | $ | (1,465,402 | ) | $ | (189,421 | ) | $ | 1,740,515 | ||||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||||||
Loss (gain) from discontinued operations | 16,245 | (12,528 | ) | (221,114 | ) | |||||||
Amortization of debt (premiums) discounts and financing costs | (152 | ) | (337 | ) | 18,753 | |||||||
Depreciation and amortization | 159,024 | 48,299 | 153,878 | |||||||||
Provision for losses on accounts receivable | 58,616 | 15,383 | 65,396 | |||||||||
Foreign currency transaction (gains) losses, net | (77,777 | ) | 106,617 | 63,948 | ||||||||
Impairment charges, restructuring charges and losses on disposals of fixed assets | 1,329,140 | 4,162 | 31,471 | |||||||||
Share-based payment expense | 4,576 | 2,210 | 5,239 | |||||||||
Reorganization gain in connection with emergence from Chapter 11 | — | — | (1,775,787 | ) | ||||||||
Fresh start adjustments, net | — | — | (248,709 | ) | ||||||||
Other, net | (342 | ) | (7,459 | ) | (10,178 | ) | ||||||
Change in assets and liabilities: | ||||||||||||
Accounts receivable | (47,962 | ) | (30,652 | ) | (35,013 | ) | ||||||
Prepaid value-added taxes | 22,805 | 643 | 50,564 | |||||||||
Handset and accessory inventory | 13,714 | 6,463 | 7,513 | |||||||||
Prepaid expenses and other | (4,254 | ) | (8,855 | ) | (26,688 | ) | ||||||
Other long-term assets | (62,563 | ) | 9,836 | 47,253 | ||||||||
Accrued value-added taxes | (10,360 | ) | (565 | ) | (7,941 | ) | ||||||
Other long-term liabilities | 14,817 | 9,967 | (32,819 | ) | ||||||||
Accounts payable, accrued expenses, deferred revenues and other | (25,033 | ) | (41,642 | ) | 18,565 | |||||||
Total operating cash used in continuing operations | (74,908 | ) | (87,879 | ) | (155,154 | ) | ||||||
Total operating cash provided by (used in) discontinued operations | — | 22,988 | (99,603 | ) | ||||||||
Net cash used in operating activities | (74,908 | ) | (64,891 | ) | (254,757 | ) | ||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (47,541 | ) | (60,062 | ) | (88,485 | ) | ||||||
Purchases of investments | (810,838 | ) | (256,467 | ) | (757,714 | ) | ||||||
Proceeds from sales of investments | 888,509 | 306,014 | 756,546 | |||||||||
Purchase of licenses | (15,936 | ) | (2,143 | ) | (5,391 | ) | ||||||
Change in restricted cash and other deposits | 67,049 | (49,329 | ) | (57,074 | ) | |||||||
Other, net | (2,312 | ) | 2,842 | 3,501 | ||||||||
Total investing cash provided by (used in) continuing operations | 78,931 | (59,145 | ) | (148,617 | ) | |||||||
Total investing cash provided by discontinued operations | 17,957 | 96,377 | 1,176,438 | |||||||||
Net cash provided by investing activities | 96,888 | 37,232 | 1,027,821 | |||||||||
Cash flows from financing activities: | ||||||||||||
Net proceeds from debtor-in-possession loan | — | — | 340,375 | |||||||||
Repayment of debtor-in-possession loan | — | — | (340,375 | ) | ||||||||
Claims paid to senior noteholders | — | — | (745,221 | ) | ||||||||
Repayments under equipment financing facility | (48,385 | ) | (24,423 | ) | — | |||||||
Repayments under bank loans, capital leases and other | (24,472 | ) | (779 | ) | (6,299 | ) | ||||||
Total financing cash used in continuing operations | (72,857 | ) | (25,202 | ) | (751,520 | ) | ||||||
Total financing cash used in discontinued operations | — | — | (26,711 | ) | ||||||||
Net cash used in financing activities | (72,857 | ) | (25,202 | ) | (778,231 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,558 | ) | 560 | (9,152 | ) | |||||||
Change in cash and cash equivalents related to discontinued operations | — | 22,662 | 103,260 | |||||||||
Net (decrease) increase in cash and cash equivalents | (52,435 | ) | (29,639 | ) | 88,941 | |||||||
Cash and cash equivalents, beginning of period | 342,184 | 423,135 | 334,194 | |||||||||
Cash and cash equivalents, end of period | $ | 289,749 | $ | 393,496 | $ | 423,135 |
Note 1. | Basis of Presentation |
Note 2. | Emergence from Chapter 11 Proceedings and Fresh Start Accounting |
• | NII Holdings canceled all shares of its common stock, preferred stock and other equity interests that existed prior to June 26, 2015; |
• | NII Holdings amended and restated its Bylaws and filed an Amended and Restated Certificate of Incorporation authorizing the Company to issue up to 140,000,000 shares of common stock, par value $0.001 per share, and up to 10,000,000 shares of undesignated preferred stock, par value $0.001 per share; |
• | NII Holdings issued 99,999,992 shares of new common stock, with a per share value of $20.68, and distributed cash of $776.3 million to the holders of claims and service providers in comprehensive settlement of numerous integrated claims and disputes approved by the Bankruptcy Court in connection with the confirmation of the Plan of Reorganization; |
• | In accordance with the Plan of Reorganization, all of the obligations of the Debtors with respect to the following indebtedness were canceled: |
• | $700.0 million aggregate principal amount of 7.875% senior notes due 2019 issued by NIIT pursuant to an indenture, dated as of May 23, 2013, among NIIT (as issuer), the Company (as guarantor), and Wilmington Trust National Association (as trustee) and all amendments, supplements or modifications thereto and extensions thereof; |
• | $900.0 million aggregate principal amount of 11.375% senior notes due 2019 issued by NIIT pursuant to an indenture, dated as of February 19, 2013, among NIIT (as issuer), the Company (as guarantor), and Wilmington Trust National Association (as trustee) and all amendments, supplements or modifications thereto and extensions thereof; |
• | $1.45 billion aggregate principal amount of 7.625% senior notes due 2021 issued by NII Capital Corp. pursuant to an indenture, dated as of March 29, 2011, among NII Capital Corp. (as issuer), each of the guarantors party thereto and Wilmington Savings Fund Society, FSB (as successor trustee) and all amendments, supplements or modifications thereto and extensions thereof; |
• | $500.0 million aggregate principal amount of 8.875% senior notes due 2019 issued by NII Capital Corp. pursuant to an indenture, dated as of December 15, 2009, among NII Capital Corp. (as issuer), each of the guarantors party thereto and U.S. Bank National Association (as successor trustee) and all amendments, supplements or modifications thereto and extensions thereof; and |
• | $800.0 million aggregate principal amount of 10.0% senior notes due 2016 issued by NII Capital Corp. pursuant to an indenture, dated as of August 18, 2009, among NII Capital Corp. (as issuer), each of the guarantors party thereto and Wilmington Savings Fund Society, FSB (as successor trustee) and all amendments, supplements or modifications thereto and extensions thereof. |
Successor Company | Predecessor Company | |||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||||
September 30, 2016 | September 30, 2015 | June 30, 2015 | ||||||||||||||
Gain on settlement of liabilities subject to compromise | $ | — | $ | — | $ | — | $ | 1,775,787 | ||||||||
Net gain on fresh start fair value adjustments | — | — | — | 261,772 | ||||||||||||
Reorganization-related professional fees and other costs | (150 | ) | (748 | ) | 2,144 | (80,685 | ) | |||||||||
Total reorganization items | $ | (150 | ) | $ | (748 | ) | $ | 2,144 | $ | 1,956,874 |
Note 3. | Impairment, Restructuring and Other Charges |
Successor Company | Predecessor Company | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Six Months Ended June 30, | |||||||||||||
2016 | 2016 | 2015 | 2015 | |||||||||||||
Brazil | $ | 1,282,764 | $ | 1,296,273 | $ | 4,845 | $ | 28,072 | ||||||||
Corporate | 41,441 | 44,404 | (130 | ) | 8,720 | |||||||||||
Total impairment, restructuring and other charges | $ | 1,324,205 | $ | 1,340,677 | $ | 4,715 | $ | 36,792 |
Balance, December 31, 2015 — Successor Company | $ | 16,859 | |
Restructuring charges | 14,872 | ||
Cash payments | (5,394 | ) | |
Foreign currency translation adjustment | 1,455 | ||
Balance, September 30, 2016 — Successor Company | $ | 27,792 |
Note 4. | Supplemental Financial Statement Information |
Successor Company | |||||||
September 30, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Cash in escrow | $ | 168,914 | $ | 6,000 | |||
Value-added taxes | 29,147 | 33,467 | |||||
Cash collateral related to performance bonds | 28,465 | 47,450 | |||||
Other prepaid expenses | 22,702 | 11,934 | |||||
Other current assets | 44,866 | 33,683 | |||||
$ | 294,094 | $ | 132,534 |
Successor Company | |||||||
September 30, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Land | $ | 3,194 | $ | 2,655 | |||
Building and leasehold improvements | 1,744 | 11,765 | |||||
Network equipment, communication towers and network software | 103,023 | 492,814 | |||||
Software, office equipment, furniture and fixtures and other | 7,654 | 65,747 | |||||
Less: Accumulated depreciation | — | (59,987 | ) | ||||
115,615 | 512,994 | ||||||
Construction in progress | 5,436 | 42,029 | |||||
$ | 121,051 | $ | 555,023 |
Successor Company | |||||||||||||||||||||||||
September 30, 2016 | December 31, 2015 | ||||||||||||||||||||||||
Average Useful Life (Years) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Amortizable intangible assets: | |||||||||||||||||||||||||
Licenses | 26 | $ | 250,343 | $ | — | $ | 250,343 | $ | 850,818 | $ | (16,314 | ) | $ | 834,504 | |||||||||||
Tradename | 26 | — | — | — | 38,700 | (744 | ) | 37,956 | |||||||||||||||||
Customer relationships | 4 | 27,717 | (8,662 | ) | 19,055 | 23,042 | (2,880 | ) | 20,162 | ||||||||||||||||
$ | 278,060 | $ | (8,662 | ) | $ | 269,398 | $ | 912,560 | $ | (19,938 | ) | $ | 892,622 |
Years | Estimated Amortization Expense | ||
2016 | $ | 37,101 | |
2017 | 16,558 | ||
2018 | 16,558 | ||
2019 | 13,093 | ||
2020 | 9,629 |
Successor Company | |||||||
September 30, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Cash in escrow — Nextel Mexico sale | $ | 167,414 | $ | 186,593 | |||
Brazil judicial deposits | 84,211 | 54,289 | |||||
Cash in escrow — Nextel Peru sale | 34,363 | 34,353 | |||||
Cash in escrow — Nextel Argentina sale | 1,500 | 6,000 | |||||
$ | 287,488 | $ | 281,235 |
Successor Company | |||||||
September 30, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Restricted cash | $ | 118,574 | $ | 275,235 | |||
Cash collateral related to performance bonds | 56,747 | 94,236 | |||||
Equity interest in Nextel Argentina | — | 108,148 | |||||
Other | 130,010 | 76,622 | |||||
$ | 305,331 | $ | 554,241 |
Successor Company | |||||||
September 30, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Brazil spectrum license payable | $ | 126,000 | $ | — | |||
Contingencies | 67,222 | 49,507 | |||||
Network system and information technology | 46,798 | 32,079 | |||||
Payroll related items and commissions | 46,339 | 31,734 | |||||
Non-income based taxes | 26,569 | 33,097 | |||||
Capital expenditures | 9,131 | 25,182 | |||||
Other | 68,704 | 97,259 | |||||
$ | 390,763 | $ | 268,858 |
Successor Company | Predecessor Company | |||||||||||
Nine Months Ended September 30, | Three Months Ended September 30, | Six Months Ended June 30, | ||||||||||
2016 | 2015 | 2015 | ||||||||||
(in thousands) | ||||||||||||
Capital expenditures | ||||||||||||
Cash paid for capital expenditures, including capitalized interest on property, plant and equipment | $ | 47,541 | $ | 60,062 | $ | 88,485 | ||||||
Change in capital expenditures accrued and unpaid or financed, including interest capitalized | (21,971 | ) | (11,672 | ) | (19,282 | ) | ||||||
$ | 25,570 | $ | 48,390 | $ | 69,203 |
• | $2,067.7 million in Successor Company common stock that we issued in partial satisfaction of certain claims that were settled in connection with our emergence from Chapter 11 (see Note 2 for more information); and |
• | a $187.5 million increase in restricted cash, which represented cash placed in escrow to secure our indemnification obligations in connection with the sale of Nextel Mexico (see Note 5 for more information). |
Note 5. | Discontinued Operations |
Successor Company | Predecessor Company | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Six Months Ended June 30, | |||||||||||||
2016 | 2016 | 2015 | 2015 | |||||||||||||
Operating revenues | $ | — | $ | — | $ | 75,450 | $ | 599,038 | ||||||||
Operating expenses | — | — | (60,863 | ) | (675,245 | ) | ||||||||||
Other income (expense), net | — | — | 1,159 | (49,974 | ) | |||||||||||
Income (loss) before income tax provision | — | — | 15,746 | (126,181 | ) | |||||||||||
Income tax provision | — | — | (4,770 | ) | (8,065 | ) | ||||||||||
— | — | 10,976 | (134,246 | ) | ||||||||||||
(Loss) income on sales of Nextel Argentina, Nextel Mexico, Nextel Chile and Nextel Peru | (7,389 | ) | (16,245 | ) | 1,552 | 355,360 | ||||||||||
(Loss) income from discontinued operations, net of income taxes | $ | (7,389 | ) | $ | (16,245 | ) | $ | 12,528 | $ | 221,114 |
Note 6. | Debt |
Successor Company | |||||||
September 30, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Brazil equipment financing facility | $ | 291,438 | $ | 339,850 | |||
Brazil bank loans | 263,366 | 240,396 | |||||
Brazil capital lease and tower financing obligations | 101,749 | 84,295 | |||||
Other | 311 | 526 | |||||
Total debt | 656,864 | 665,067 | |||||
Less: current portion | (560,123 | ) | (582,420 | ) | |||
$ | 96,741 | $ | 82,647 |
Note 7. | Fair Value Measurements |
Successor Company | |||||||||||||||||||||||
September 30, 2016 | December 31, 2015 | ||||||||||||||||||||||
Principal Amount Outstanding | Carrying Amount | Estimated Fair Value | Principal Amount Outstanding | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Brazil equipment financing | $ | 293,550 | $ | 291,438 | $ | 274,993 | $ | 342,475 | $ | 339,850 | $ | 340,189 | |||||||||||
Brazil bank loans and other | 255,421 | 263,677 | 237,792 | 234,320 | 240,922 | 229,366 | |||||||||||||||||
$ | 548,971 | $ | 555,115 | $ | 512,785 | $ | 576,795 | $ | 580,772 | $ | 569,555 |
Note 8. | Commitments and Contingencies |
Note 9. | Income Taxes |
Note 10. | Segment Reporting |
Nextel Brazil | Corporate and Eliminations | Consolidated | |||||||||
(in thousands) | |||||||||||
Three Months Ended September 30, 2016 — Successor Company | |||||||||||
Operating revenues | $ | 260,798 | $ | 38 | $ | 260,836 | |||||
Segment earnings (losses) | $ | 23,636 | $ | (7,922 | ) | $ | 15,714 | ||||
Less: | |||||||||||
Impairment, restructuring and other charges | (1,324,205 | ) | |||||||||
Depreciation and amortization | (78,205 | ) | |||||||||
Foreign currency transaction losses, net | (5,221 | ) | |||||||||
Interest expense and other, net | (22,325 | ) | |||||||||
Loss from continuing operations before reorganization items and income tax provision | $ | (1,414,242 | ) | ||||||||
Capital expenditures | $ | 14,439 | $ | — | $ | 14,439 | |||||
Three Months Ended September 30, 2015 — Successor Company | |||||||||||
Operating revenues | $ | 284,606 | $ | 46 | $ | 284,652 | |||||
Segment losses | $ | (10,808 | ) | $ | (13,830 | ) | $ | (24,638 | ) | ||
Less: | |||||||||||
Impairment, restructuring and other charges | (4,715 | ) | |||||||||
Depreciation and amortization | (48,299 | ) | |||||||||
Foreign currency transaction losses, net | (106,617 | ) | |||||||||
Interest expense and other, net | (19,354 | ) | |||||||||
Loss from continuing operations before reorganization items and income tax provision | $ | (203,623 | ) | ||||||||
Capital expenditures | $ | 48,115 | $ | 275 | $ | 48,390 | |||||
Nine Months Ended September 30, 2016 — Successor Company | |||||||||||
Operating revenues | $ | 736,469 | $ | 137 | $ | 736,606 | |||||
Segment earnings (losses) | $ | 59,652 | $ | (29,462 | ) | $ | 30,190 | ||||
Less: | |||||||||||
Impairment, restructuring and other charges | (1,340,677 | ) | |||||||||
Depreciation and amortization | (159,024 | ) | |||||||||
Foreign currency transaction gains, net | 77,777 | ||||||||||
Interest expense and other, net | (59,144 | ) | |||||||||
Loss from continuing operations before reorganization items and income tax provision | $ | (1,450,878 | ) | ||||||||
Capital expenditures | $ | 25,570 | $ | — | $ | 25,570 | |||||
Six Months Ended June 30, 2015 — Predecessor Company | |||||||||||
Operating revenues | $ | 683,611 | $ | 100 | $ | 683,711 | |||||
Segment losses | $ | (75,234 | ) | $ | (37,982 | ) | $ | (113,216 | ) | ||
Less: | |||||||||||
Impairment, restructuring and other charges | (36,792 | ) | |||||||||
Depreciation and amortization | (153,878 | ) | |||||||||
Foreign currency transaction losses, net | (63,948 | ) | |||||||||
Interest expense and other, net | (67,630 | ) | |||||||||
Loss from continuing operations before reorganization items and income tax provision | $ | (435,464 | ) | ||||||||
Capital expenditures | $ | 68,385 | $ | 818 | $ | 69,203 | |||||
September 30, 2016 — Successor Company | |||||||||||
Identifiable assets | $ | 983,125 | $ | 493,741 | $ | 1,476,866 | |||||
December 31, 2015 — Successor Company | |||||||||||
Identifiable assets | $ | 1,989,753 | $ | 740,155 | $ | 2,729,908 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
INDEX TO MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | |
• | our consolidated financial condition as of September 30, 2016 and December 31, 2015 and our consolidated results of operations for the three-month periods ended September 30, 2016 and 2015, for the nine-month period ended September 30, 2016 and for the six-month period ended June 30, 2015; and |
• | significant factors that we believe could affect our prospective financial condition and results of operations. |
• | mobile telephone voice service; |
• | wireless data services, including mobile internet services, text messaging services and email services; |
• | push-to-talk services, including Direct Connect®, Prip and International Direct Connect® services, which allow subscribers to talk to each other instantly; |
• | other value-added services, including location-based services, which include the use of Global Positioning System, or GPS, technologies; digital media services; and a wide ranging set of applications available via our content management system, as well as the AndroidTM open application market; |
• | business solutions, such as security, work force management, logistics support and other applications that help our business subscribers improve their productivity; and |
• | voice and data roaming services outside of our coverage areas. |
• | aligning our costs with our current business through continuous evaluation and streamlining of all capital and operating expenditures; |
• | focusing on higher value customer segments that generate higher average monthly revenue per subscriber, or ARPU, and lower subscriber turnover; |
• | utilizing the most profitable sales channels; |
• | offering a superior customer experience, including a reliable and high quality wireless network; and |
• | building on the strength of the unique positioning of the Nextel brand. |
• | revenue recognition; |
• | allowance for doubtful accounts; |
• | depreciation of property, plant and equipment; |
• | amortization of intangible assets; |
• | valuation of long-lived assets; |
• | foreign currency; |
• | loss contingencies; and |
• | income taxes. |
Successor Company | Actual Percent Change From Prior Year | ||||||||
Three Months Ended September 30, | |||||||||
2016 | 2015 | ||||||||
Brazilian real | 3.25 | 3.55 | 8 | % |
Successor Company | Predecessor Company | Combined | Actual Percent Change From Prior Year | ||||||||||||
Nine Months Ended September 30, | Three Months Ended September 30, | Six Months Ended June 30, | Nine Months Ended September 30, | ||||||||||||
2016 | 2015 | 2015 | 2015 | ||||||||||||
Brazilian real | 3.56 | 3.55 | 2.97 | 3.16 | (13 | )% |
Predecessor Company | Successor Company | ||||||||||||||||||||
2015 | 2016 | ||||||||||||||||||||
March | June | September | December | March | June | September | |||||||||||||||
Brazilian real | 3.21 | 3.10 | 3.97 | 3.90 | 3.56 | 3.21 | 3.25 |
Successor Company | |||||||||||||||||
Three Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | Actual Change from Previous Year | Constant Currency Change from Previous Year | ||||||||||||||
Dollars | Percent | Percent | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Brazil segment earnings (losses) | 23,636 | (10,808 | ) | 34,444 | NM | NM | |||||||||||
Corporate segment losses and eliminations | (7,922 | ) | (13,830 | ) | 5,908 | (43 | )% | (43 | )% | ||||||||
Consolidated segment earnings (losses) | 15,714 | (24,638 | ) | 40,352 | (164 | )% | (233 | )% | |||||||||
Impairment, restructuring and other charges | (1,324,205 | ) | (4,715 | ) | (1,319,490 | ) | NM | NM | |||||||||
Depreciation and amortization | (78,205 | ) | (48,299 | ) | (29,906 | ) | 62 | % | 49 | % | |||||||
Operating loss | (1,386,696 | ) | (77,652 | ) | (1,309,044 | ) | NM | NM | |||||||||
Interest expense, net | (29,451 | ) | (28,878 | ) | (573 | ) | 2 | % | (10 | )% | |||||||
Interest income | 9,199 | 8,597 | 602 | 7 | % | (2 | )% | ||||||||||
Foreign currency transaction losses, net | (5,221 | ) | (106,617 | ) | 101,396 | (95 | )% | (96 | )% | ||||||||
Other (expense) income, net | (2,073 | ) | 927 | (3,000 | ) | NM | NM | ||||||||||
Loss from continuing operations before reorganization items and income tax provision | (1,414,242 | ) | (203,623 | ) | (1,210,619 | ) | NM | NM | |||||||||
Reorganization items | (150 | ) | 2,144 | (2,294 | ) | (107 | )% | (107 | )% | ||||||||
Income tax benefit (provision) | 2,838 | (470 | ) | 3,308 | NM | NM | |||||||||||
Net loss from continuing operations | (1,411,554 | ) | (201,949 | ) | (1,209,605 | ) | NM | NM | |||||||||
(Loss) income from discontinued operations, net of income taxes | (7,389 | ) | 12,528 | (19,917 | ) | (159 | )% | (159 | )% | ||||||||
Net loss | $ | (1,418,943 | ) | $ | (189,421 | ) | $ | (1,229,522 | ) | NM | NM |
Successor Company | Predecessor Company | Combined | ||||||||||||||||||||||||
Nine Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | Six Months Ended June 30, 2015 | Nine Months Ended September 30, 2015 | Actual Change from Previous Year | Constant Currency Change from Previous Year | |||||||||||||||||||||
Dollars | Percent | Percent | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Brazil segment earnings (losses) | 59,652 | (10,808 | ) | (75,234 | ) | (86,042 | ) | 145,694 | (169 | )% | (178 | )% | ||||||||||||||
Corporate and eliminations segment losses | (29,462 | ) | (13,830 | ) | (37,982 | ) | (51,812 | ) | 22,350 | (43 | )% | (43 | )% | |||||||||||||
Consolidated segment earnings (losses) | 30,190 | (24,638 | ) | (113,216 | ) | (137,854 | ) | 168,044 | (122 | )% | (140 | )% | ||||||||||||||
Impairment, restructuring and other charges | (1,340,677 | ) | (4,715 | ) | (36,792 | ) | (41,507 | ) | (1,299,170 | ) | NM | NM | ||||||||||||||
Depreciation and amortization | (159,024 | ) | (48,299 | ) | (153,878 | ) | (202,177 | ) | 43,153 | (21 | )% | (12 | )% | |||||||||||||
Operating loss | (1,469,511 | ) | (77,652 | ) | (303,886 | ) | (381,538 | ) | (1,087,973 | ) | 285 | % | NM | |||||||||||||
Interest expense, net | (81,854 | ) | (28,878 | ) | (82,820 | ) | (111,698 | ) | 29,844 | (27 | )% | (16 | )% | |||||||||||||
Interest income | 29,725 | 8,597 | 15,327 | 23,924 | 5,801 | 24 | % | 40 | % | |||||||||||||||||
Foreign currency transaction gains (losses), net | 77,777 | (106,617 | ) | (63,948 | ) | (170,565 | ) | 248,342 | (146 | )% | (151 | )% | ||||||||||||||
Other (expense) income, net | (7,015 | ) | 927 | (137 | ) | 790 | (7,805 | ) | NM | NM | ||||||||||||||||
Loss from continuing operations before reorganization items and income tax provision | (1,450,878 | ) | (203,623 | ) | (435,464 | ) | (639,087 | ) | (811,791 | ) | 127 | % | 154 | % | ||||||||||||
Reorganization items | (748 | ) | 2,144 | 1,956,874 | 1,959,018 | (1,959,766 | ) | (100 | )% | (100 | )% | |||||||||||||||
Income tax benefit (provision) | 2,469 | (470 | ) | (2,009 | ) | (2,479 | ) | 4,948 | (200 | )% | (200 | )% | ||||||||||||||
Net (loss) income from continuing operations | (1,449,157 | ) | (201,949 | ) | 1,519,401 | 1,317,452 | (2,766,609 | ) | (210 | )% | (205 | )% | ||||||||||||||
(Loss) income from discontinued operations, net of income taxes | (16,245 | ) | 12,528 | 221,114 | 233,642 | (249,887 | ) | (107 | )% | (107 | )% | |||||||||||||||
Net (loss) income | $ | (1,465,402 | ) | $ | (189,421 | ) | $ | 1,740,515 | $ | 1,551,094 | $ | (3,016,496 | ) | (194 | )% | (191 | )% |
1. | Impairment, restructuring and other charges |
2. | Depreciation and amortization |
3. | Interest expense, net |
4. | Foreign currency transaction (losses) gains, net |
5. | Reorganization items |
Successor Company | |||||||||||||||||||||||
Three Months Ended September 30, 2016 | % of Nextel Brazil’s Operating Revenues | Three Months Ended September 30, 2015 | % of Nextel Brazil’s Operating Revenues | Actual Change from Previous Year | Constant Currency Change from Previous Year | ||||||||||||||||||
Dollars | Percent | Percent | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Service and other revenues | $ | 255,625 | 98 | % | $ | 266,441 | 94 | % | $ | (10,816 | ) | (4 | )% | (12 | )% | ||||||||
Handset and accessory revenues | 5,173 | 2 | % | 18,165 | 6 | % | (12,992 | ) | (72 | )% | (74 | )% | |||||||||||
Cost of handsets and accessories | (5,780 | ) | (2 | )% | (28,307 | ) | (10 | )% | 22,527 | (80 | )% | (81 | )% | ||||||||||
Handset and accessory net subsidy | (607 | ) | — | (10,142 | ) | (4 | )% | 9,535 | (94 | )% | (95 | )% | |||||||||||
Cost of service (exclusive of depreciation and amortization) | (96,526 | ) | (37 | )% | (112,193 | ) | (39 | )% | 15,667 | (14 | )% | (21 | )% | ||||||||||
Selling and marketing expenses | (30,439 | ) | (12 | )% | (44,209 | ) | (16 | )% | 13,770 | (31 | )% | (37 | )% | ||||||||||
General and administrative expenses | (104,417 | ) | (40 | )% | (110,705 | ) | (39 | )% | 6,288 | (6 | )% | (14 | )% | ||||||||||
Segment earnings (losses) | $ | 23,636 | 9 | % | $ | (10,808 | ) | (4 | )% | $ | 34,444 | NM | NM |
Successor Company | Predecessor Company | Combined | ||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2016 | % of Nextel Brazil’s Operating Revenues | Three Months Ended September 30, 2015 | Six Months Ended June 30, 2015 | Nine Months Ended September 30, 2015 | % of Nextel Brazil’s Operating Revenues | Actual Change from Previous Year | Constant Currency Change from Previous Year | |||||||||||||||||||||||||
Dollars | Percent | Percent | ||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Service and other revenues | $ | 719,250 | 98 | % | $ | 266,441 | $ | 643,804 | $ | 910,245 | 94 | % | $ | (190,995 | ) | (21 | )% | (11 | )% | |||||||||||||
Handset and accessory revenues | 17,219 | 2 | % | 18,165 | 39,807 | 57,972 | 6 | % | (40,753 | ) | (70 | )% | (67 | )% | ||||||||||||||||||
Cost of handsets and accessories | (25,807 | ) | (3 | )% | (28,307 | ) | (121,143 | ) | (149,450 | ) | (15 | )% | 123,643 | (83 | )% | (81 | )% | |||||||||||||||
Handset and accessory net subsidy | (8,588 | ) | (1 | )% | (10,142 | ) | (81,336 | ) | (91,478 | ) | (9 | )% | 82,890 | (91 | )% | (89 | )% | |||||||||||||||
Cost of service (exclusive of depreciation and amortization) | (268,460 | ) | (37 | )% | (112,193 | ) | (256,153 | ) | (368,346 | ) | (38 | )% | 99,886 | (27 | )% | (18 | )% | |||||||||||||||
Selling and marketing expenses | (80,491 | ) | (11 | )% | (44,209 | ) | (105,357 | ) | (149,566 | ) | (16 | )% | 69,075 | (46 | )% | (39 | )% | |||||||||||||||
General and administrative expenses | (302,059 | ) | (41 | )% | (110,705 | ) | (276,192 | ) | (386,897 | ) | (40 | )% | 84,838 | (22 | )% | (12 | )% | |||||||||||||||
Segment earnings (losses) | $ | 59,652 | 8 | % | $ | (10,808 | ) | $ | (75,234 | ) | $ | (86,042 | ) | (9 | )% | $ | 145,694 | (169 | )% | (178 | )% |
Predecessor Company | Successor Company | ||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
March 31, 2015 | June 30, 2015 | September 30, 2015 | December 31, 2015 | March 31, 2016 | June 30, 2016 | September 30, 2016 | |||||||||||||||
(subscribers in thousands) | |||||||||||||||||||||
iDEN subscriber units | 2,667.5 | 2,414.5 | 2,166.2 | 1,842.0 | 1,552.0 | 1,315.1 | 1,127.8 | ||||||||||||||
WCDMA subscriber units | 1,672.2 | 1,970.4 | 2,254.2 | 2,597.7 | 2,744.7 | 2,708.7 | 2,717.1 | ||||||||||||||
Total subscriber units in commercial service — beginning of period | 4,339.7 | 4,384.9 | 4,420.4 | 4,439.7 | 4,296.7 | 4,023.8 | 3,844.9 | ||||||||||||||
iDEN net subscriber losses | (194.7 | ) | (189.0 | ) | (208.1 | ) | (211.5 | ) | (195.2 | ) | (149.7 | ) | (130.8 | ) | |||||||
WCDMA net subscriber additions (losses) | 239.9 | 224.5 | 227.3 | 68.5 | (77.7 | ) | (29.2 | ) | (5.7 | ) | |||||||||||
Total net subscriber additions (losses) | 45.2 | 35.5 | 19.2 | (143.0 | ) | (272.9 | ) | (178.9 | ) | (136.5 | ) | ||||||||||
Migrations from iDEN to WCDMA | 58.3 | 59.3 | 116.2 (1) | 78.5 | 41.7 | 37.6 | 34.9 | ||||||||||||||
iDEN subscriber units | 2,414.5 | 2,166.2 | 1,842.0 | 1,552.0 | 1,315.1 | 1,127.8 | 962.1 | ||||||||||||||
WCDMA subscriber units | 1,970.4 | 2,254.2 | 2,597.7 | 2,744.7 | 2,708.7 | 2,717.1 | 2,746.3 | ||||||||||||||
Total subscriber units in commercial service — end of period | 4,384.9 | 4,420.4 | 4,439.7 | 4,296.7 | 4,023.8 | 3,844.9 | 3,708.4 | ||||||||||||||
Total subscriber turnover | 3.15 | % | 3.34 | % | 3.54 | % | 3.74 | % | 4.34 | % | 3.99 | % | 3.99 | % | |||||||
iDEN subscriber turnover | 3.25 | % | 3.54 | % | 3.94 | % | 4.48 | % | 4.80 | % | 4.46 | % | 4.65 | % | |||||||
WCDMA subscriber turnover | 2.99 | % | 3.13 | % | 3.21 | % | 3.27 | % | 4.10 | % | 3.78 | % | 3.73 | % |
Predecessor Company | Successor Company | ||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
March 31, 2015 | June 30, 2015 | September 30, 2015 | December 31, 2015 | March 31, 2016 | June 30, 2016 | September 30, 2016 | |||||||||||||||
Total service ARPU (US$) | 23 | 20 | 18 | 16 | 16 | 19 | 21 | ||||||||||||||
WCDMA service ARPU (US$) | 25 | 22 | 19 | 17 | 16 | 20 | 21 | ||||||||||||||
iDEN service ARPU (US$) | 22 | 19 | 17 | 15 | 15 | 16 | 19 | ||||||||||||||
Total service ARPU (BR) | 66 | 62 | 62 | 62 | 62 | 66 | 67 | ||||||||||||||
WCDMA service ARPU (BR) | 70 | 66 | 66 | 65 | 64 | 70 | 69 | ||||||||||||||
iDEN service ARPU (BR) | 62 | 59 | 58 | 58 | 57 | 56 | 60 |
1. | Service and other revenues |
2. | Handset and accessory net subsidy |
3. | Cost of service |
4. | Selling and marketing expenses |
5. | General and administrative expenses |
Successor Company | ||||||||||||||
Three Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | Change from Previous Year | ||||||||||||
Dollars | Percent | |||||||||||||
(dollars in thousands) | ||||||||||||||
Service and other revenues | $ | 38 | $ | 60 | $ | (22 | ) | (37 | )% | |||||
General and administrative expenses | (7,960 | ) | (13,890 | ) | 5,930 | (43 | )% | |||||||
Segment losses | $ | (7,922 | ) | $ | (13,830 | ) | $ | 5,908 | (43 | )% |
Successor Company | Predecessor Company | Combined | |||||||||||||||||||||
Nine Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | Six Months Ended June 30, 2015 | Nine Months Ended September 30, 2015 | Actual Change from Previous Year | |||||||||||||||||||
Dollars | Percent | ||||||||||||||||||||||
Service and other revenues | $ | 137 | $ | 60 | $ | 168 | $ | 228 | $ | (91 | ) | (40 | )% | ||||||||||
General and administrative expenses | (29,599 | ) | (13,890 | ) | (39,071 | ) | (52,961 | ) | 23,362 | (44 | )% | ||||||||||||
Segment losses | $ | (29,462 | ) | $ | (13,830 | ) | $ | (38,903 | ) | $ | (52,733 | ) | 23,271 | (44 | )% |
Successor Company | Predecessor Company | |||||||||||
Nine Months Ended September 30, 2016 | Three Months Ended September 30, 2015 | Six Months Ended June 30, 2015 | ||||||||||
Cash and cash equivalents, beginning of period | $ | 342,184 | $ | 423,135 | $ | 334,194 | ||||||
Net cash used in operating activities | (74,908 | ) | (64,891 | ) | (254,757 | ) | ||||||
Net cash provided by investing activities | 96,888 | 37,232 | 1,027,821 | |||||||||
Net cash used in financing activities | (72,857 | ) | (25,202 | ) | (778,231 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,558 | ) | 560 | (9,152 | ) | |||||||
Change in cash and cash equivalents related to discontinued operations | — | 22,662 | 103,260 | |||||||||
Cash and cash equivalents, end of period | $ | 289,749 | $ | 393,496 | $ | 423,135 |
• | the amount of revenue we are able to generate and collect from our subscribers, including our ability to increase the size of our subscriber base; |
• | the amount of operating expenses required to provide our services; |
• | the cost of acquiring and retaining subscribers, including the subsidies we incur to provide handsets to both our new and existing subscribers; and |
• | changes in foreign currency exchange rates. |
• | operating expenses and capital expenditures relating to our existing network and the deployment of LTE in other commercial areas in Brazil; |
• | payments in connection with spectrum purchases and ongoing spectrum license fees; |
• | debt service requirements; |
• | obligations relating to our tower financing arrangements and capital lease obligations; |
• | cash taxes; and |
• | other general corporate expenditures. |
• | the amount we spend to enhance our WCDMA network in Brazil and deploy LTE; |
• | the extent to which we expand the coverage of our network in new or existing market areas; |
• | the number of additional transmitter and receiver sites we build in order to increase system capacity, maintain system quality and meet our regulatory requirements, as well as the costs associated with the installation of network infrastructure and switching equipment; and |
• | the costs we incur in connection with non-network related information technology projects. |
• | cash and cash equivalents on hand and short-term investments available to fund our operations; |
• | restricted cash currently held in escrow to secure our indemnification obligations in connection with the sales of Nextel Argentina, Nextel Mexico and Nextel Peru; |
• | the future return of cash pledged as collateral to secure certain performance bonds relating to our obligations to deploy our spectrum in Brazil; |
• | cash proceeds from sales of assets, including the potential sale of additional transmitter and receiver sites in Brazil; |
• | expected cash flows from our operation in Brazil; |
• | the cost of purchasing spectrum, the financing available to fund such purchases, and timing of spectrum payments, including ongoing fees for spectrum use; |
• | the anticipated level of capital expenditures required to meet both minimum build-out requirements and our planned deployment of the WCDMA network in Brazil, as well as our planned deployment of LTE in other commercial areas in Brazil; |
• | our scheduled debt service obligations; |
• | our other contractual obligations; and |
• | cash income and other taxes. |
• | based on the continued development of our business plans and strategy; |
• | if we decide to expand into new markets or expand our geographic coverage or network capacity in our existing markets beyond our current plans, as a result of the construction of additional portions of our network or the acquisition of competitors or others; |
• | if currency values in Brazil depreciate or appreciate relative to the U.S. dollar in a manner that is more significant than we currently expect and assume as part of our plans; |
• | if economic conditions in Brazil do not improve or worsen; |
• | if competitive practices in the mobile wireless telecommunications industry in Brazil change materially from those currently prevailing or from those now anticipated; or |
• | if other presently unexpected circumstances arise that have a material effect on the cash flow or profitability of our business. |
• | our ability to attract and retain subscribers; |
• | our ability to satisfy the requirements of our debt obligations; |
• | our ability to access sufficient debt or equity capital to meet any future operating and financial needs; |
• | our ability to meet established operating goals and generate cash flow; |
• | the availability of other funding sources, including the proceeds from the sales of Nextel Argentina, Nextel Mexico and Nextel Peru held in escrow and proceeds derived from other asset sales; |
• | general economic conditions in Brazil and in the market segments that we are targeting for our services; |
• | the political and social conditions in Brazil, including political instability, which may affect Brazil's economy and the regulatory scheme there; |
• | the impact of foreign currency exchange rate volatility in the local currency in Brazil when compared to the U.S. dollar and the impact of related currency depreciation in Brazil; |
• | our having reasonable access to and the successful performance of the technology being deployed in our service areas, and improvements thereon, including technology deployed in connection with the introduction of digital two-way mobile data or internet connectivity services in our markets; |
• | the availability of adequate quantities of system infrastructure and subscriber equipment and components at reasonable pricing to meet our service deployment and marketing plans and customer demand; |
• | risks related to the operation and expansion of our WCDMA network in Brazil, including the potential need for additional funding to support enhanced coverage and capacity, and the risk that new services supported by the WCDMA network will not attract enough subscribers to support the related costs of deploying or operating the network; |
• | our ability to successfully scale our billing, collection, customer care and similar back-office operations to keep pace with customer growth as necessary, increased system usage rates and growth or to successfully deploy new systems that support those functions; |
• | future legislation or regulatory actions relating to our services, other wireless communications services or telecommunications generally and the costs and/or potential customer impacts of compliance with regulatory mandates; |
• | the ability to achieve and maintain market penetration and average subscriber revenue levels sufficient to provide financial viability to our network business; |
• | the quality and price of similar or comparable wireless communications services offered or to be offered by our competitors, including providers of cellular services and personal communications services; |
• | market acceptance of our new service offerings; |
• | our ability to successfully manage and support our legacy iDEN network in Brazil; |
• | equipment failure, natural disasters, terrorist acts or other breaches of network or information technology security; and |
• | other risks and uncertainties described in Part I, Item 1A. "Risk Factors," in our annual report on Form 10-K for the year ended December 31, 2015 and, from time to time, in our other reports filed with the SEC. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
• | replacing Nextel Brazil's controller during the second quarter of 2016; |
• | improving the number and quality of other key individuals within Nextel Brazil's accounting function; |
• | providing supplemental training on U.S. generally accepted accounting principles throughout Nextel Brazil's finance organization; |
• | redesigning our risk assessment process and, during the first half of 2016, reviewing significant accounting processes for risk points and control gaps; |
• | improving account reconciliation preparation and review procedures; |
• | developing a controlled repository for key lease data with adequate supporting evidence; and |
• | implementing controls over the completeness and accuracy of inputs to the allowance for doubtful accounts calculation. |
• | making changes to modify the reporting structure between Nextel Brazil and our corporate headquarters; |
• | providing training to senior leadership in Nextel Brazil related to Sarbanes-Oxley and other SEC rules and regulations; and |
• | implementing new contract and purchase order review and approval processes. |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Issuer Purchases of Equity Securities |
Period | Total Number of Shares Purchased | Average Price Per Share | Total Number of Shares Purchased as Part of Program | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program | ||||||||||
July 1, 2016 - July 31, 2016 | 4 | (1) | $ | 3.04 | 4 | |||||||||
August 1, 2016 - August 31, 2016 | 190 | (1) | 3.02 | 190 | ||||||||||
September 1, 2016 - September 30, 2016 | 65 | (1) | 3.34 | 65 | ||||||||||
Total | 259 | (1) | 3.10 | 259 | $ | — |
Exhibit Number | Exhibit Description | Form | Exhibit | Incorporated by Reference Filing Date | ||||
31.1 | Statement of Chief Executive Officer Pursuant to Rule 13a-14(a). | |||||||
31.2 | Statement of Chief Financial Officer Pursuant to Rule 13a-14(a). | |||||||
32.1 | Statement of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350. | |||||||
32.2 | Statement of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350. | |||||||
101 | The following materials from the NII Holdings, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 formatted in eXtensible Business Reporting Language (XBRL): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Comprehensive (Loss) Income, (iii) Condensed Consolidated Statement of Changes in Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows and (v) Notes to Condensed Consolidated Financial Statements. |
By: | /s/ TIMOTHY M. MULIERI | |
Timothy M. Mulieri | ||
Vice President, Corporate Controller | ||
(on behalf of the registrant and as Principal Accounting Officer) |
Exhibit Number | Exhibit Description | Form | Exhibit | Incorporated by Reference Filing Date | ||||
31.1 | Statement of Chief Executive Officer Pursuant to Rule 13a-14(a). | |||||||
31.2 | Statement of Chief Financial Officer Pursuant to Rule 13a-14(a). | |||||||
32.1 | Statement of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350. | |||||||
32.2 | Statement of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350. | |||||||
101 | The following materials from the NII Holdings, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 formatted in eXtensible Business Reporting Language (XBRL): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Comprehensive (Loss) Income, (iii) Condensed Consolidated Statement of Changes in Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows and (v) Notes to Condensed Consolidated Financial Statements. |
1. | I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2016 of NII Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ STEVEN M. SHINDLER | ||
Steven M. Shindler | ||
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2016 of NII Holdings, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ DANIEL E. FREIMAN | ||
Daniel E. Freiman | ||
Chief Financial Officer |
1. | The Report fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ STEVEN M. SHINDLER | ||
Steven M. Shindler | ||
Chief Executive Officer |
1. | The Report fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ DANIEL E. FREIMAN | ||
Daniel E. Freiman | ||
Chief Financial Officer |
Document and Entity Information Statement - shares |
9 Months Ended | |
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Sep. 30, 2016 |
Nov. 11, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NII HOLDINGS INC | |
Central Index Key | 0001037016 | |
Entity Well-Known Seasoned issuer | No | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting status | Yes | |
Entity Volunteer Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 100,783,074 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - Successor Company - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Allowance for doubtful Accounts | $ 55,021 | $ 39,033 |
Preferred Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized (shares) | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued (shares) | 0 | 0 |
Preferred Stock, shares outstanding (shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (shares) | 140,000,000 | 140,000,000 |
Common Stock, shares issued (shares) | 100,150,000 | 100,001,000 |
Common Stock, shares outstanding (shares) | 100,150,000 | 100,001,000 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2016 - Successor Company - USD ($) shares in Thousands, $ in Thousands |
Total |
Common Stock |
Paid-in Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
---|---|---|---|---|---|
Beginning Balance (shares) at Dec. 31, 2015 | 100,001 | ||||
Beginning Balance at Dec. 31, 2015 | $ 1,543,995 | $ 100 | $ 2,070,497 | $ (280,883) | $ (245,719) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (1,465,402) | (1,465,402) | |||
Other comprehensive income | 170,962 | 170,962 | |||
Share-based compensation activity (shares) | 149 | ||||
Share-based compensation activity | 4,614 | 4,614 | |||
Ending Balance (shares) at Sep. 30, 2016 | 100,150 | ||||
Ending Balance at Sep. 30, 2016 | $ 254,169 | $ 100 | $ 2,075,111 | $ (1,746,285) | $ (74,757) |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Unless the context requires otherwise, "NII Holdings, Inc.," "NII Holdings," "we," "our," "us" and "the Company" refer to the combined businesses of NII Holdings, Inc. and its consolidated subsidiaries. Our unaudited condensed consolidated financial statements have been prepared under the rules and regulations of the Securities and Exchange Commission, or the SEC. While these financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements, they reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of the results for interim periods. In addition, the year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. We refer to our wholly-owned Brazilian operating company, Nextel Telecomunicações Ltda., as Nextel Brazil. You should read these condensed consolidated financial statements in conjunction with the consolidated financial statements and notes contained in our annual report on Form 10-K for the year ended December 31, 2015 and the condensed consolidated financial statements contained in our quarterly reports on Form 10-Q for the three months ended March 31, 2016 and for the three months ended June 30, 2016. You should not expect results of operations for interim periods to be an indication of the results for a full year. Our consolidated results from continuing operations in this quarterly report on Form 10-Q include the results of operations of Nextel Brazil and our corporate headquarters. Revision of Prior Period Financial Statements. In connection with the preparation of our condensed consolidated financial statements for the three months ended March 31, 2016, we determined that an error existed in our previously issued financial statements. Specifically, selling, general and administrative expenses for the six months ended December 31, 2015 were understated by $6.9 million as the result of a failure to properly accrue expenses for services Nextel Brazil received under a management consulting services arrangement. We evaluated this error under the SEC's authoritative guidance on materiality and the quantification of the effect of prior period misstatements on financial statements, and we determined that the impact of this error on our prior period consolidated financial statements is immaterial. However, since the correction of this error in the first quarter of 2016 would have been material to our results of operations for the three months ended March 31, 2016 and may be material to our results of operations for the year ending December 31, 2016, we revised our prior period financial statements to correct this error. As a result of the correction of this error, as of December 31, 2015, accrued expenses and other increased by $6.8 million, accumulated deficit increased by $6.9 million and accumulated other comprehensive loss decreased by $0.1 million. Although not presented herein, for the six months ended December 31, 2015, this error resulted in a $6.9 million increase to selling, general and administrative expenses, operating loss, loss from continuing operations before reorganization items and income tax benefit, net loss from continuing operations and net loss. In addition, for the six months ended December 31, 2015, the correction of this error resulted in a $0.07 increase in both net loss from continuing operations per basic and diluted common share and net loss per basic and diluted common share. This error did not relate to any periods prior to the six months ended December 31, 2015. Reorganization Accounting. In accordance with the requirements of reorganization accounting, NII Holdings adopted the provisions of fresh start accounting as of June 30, 2015 and became a new entity for financial reporting purposes. References to the "Successor Company" relate to NII Holdings on or subsequent to June 30, 2015. References to the "Predecessor Company" relate to NII Holdings prior to June 30, 2015. See Note 2 for more information regarding the implementation of fresh start accounting. Going Concern. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These condensed consolidated financial statements do not include any adjustments that might result from the occurrence of the uncertainties described below. Over the last year, we have implemented changes in our business to better align our organization and costs with our available sources of funding, as well as to respond to the impact of the current and expected economic and competitive conditions in Brazil. These changes have included changes to our leadership team; improvements to our operations; and the implementation of cost savings measures, spending reductions and headcount reductions. As a result of these changes, we have reduced the amount of cash used in our operating activities for the nine months ended September 30, 2016 compared to the combined nine-month period ended September 30, 2015. Our current sources of funding primarily include $311.7 million of cash and investments on hand; the ultimate amount recovered from the $203.3 million of cash currently held in escrow to secure our indemnification obligations in connection with the sales of Nextel Argentina, Nextel Mexico and Nextel Peru; and the return of $85.2 million of cash pledged as collateral to secure certain performance bonds relating to our obligations to deploy our spectrum in Brazil. Our current sources of funding may not be adequate to fund our business beyond early 2018 even if our results of operations are consistent with our current projections. In addition, if anticipated funding sources are not available to us, including the release of cash held in escrow, it is likely that we would need to obtain additional funding within the next six to twelve months based on our current projections. We believe that the uncertainties relating to our business, together with the restrictions in our current financing arrangements and general conditions in the financial and credit markets, will make it difficult for us to obtain new capital. If we cannot obtain suitable financing, if and when it is required for these or other reasons, it could, among other things, negatively impact our results of operations and liquidity and our ability to settle our obligations as they come due. In connection with the agreements governing Nextel Brazil's local bank loans, we are required to meet a net debt financial covenant semiannually. In August 2016, Nextel Brazil secured waivers from the lenders of its local bank loans related to this financial covenant for the June 30, 2016 measurement date. The next measurement date for this financial covenant will be December 31, 2016. Based on our current outlook, we believe it is unlikely that we will satisfy the applicable financial covenant included in both of Nextel Brazil's local bank loan agreements as of the December 31, 2016 measurement date. As a result, we have requested waivers from the lenders in order to avoid a potential default under the loan agreements. If a default under these local bank loans occurs, the lenders could require us to repay the amounts outstanding under these arrangements, and if they were to do so, the lender of Nextel Brazil's equipment financing facility could accelerate the amount outstanding under that obligation as well. As of September 30, 2016, we had $255.1 million principal amount outstanding under Nextel Brazil's local bank loans and $293.6 million principal amount outstanding under Nextel Brazil’s equipment financing facility. See Note 6 for more information. These conditions continue to raise substantial doubt about our ability to continue as a going concern. Reclassifications. We have reclassified some prior period amounts in our condensed consolidated financial statements to conform to our current year presentation. New Accounting Pronouncements. There were no new accounting standards issued during the three months ended September 30, 2016 that materially impacted our condensed consolidated financial statements or could materially impact our financial statements or related disclosures in a future period. |
Emergence From Chapter 11 Proceedings and Fresh Start Accounting |
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Reorganizations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Emergence from Chapter 11 Proceedings and Fresh Start Accounting | Emergence from Chapter 11 Proceedings and Fresh Start Accounting On September 15, 2014, we and eight of our U.S. and Luxembourg-domiciled subsidiaries, including NII Capital Corp. and NII International Telecom, S.C.A., or NIIT, filed voluntary petitions seeking relief under Chapter 11 of Title 11 of the United States Bankruptcy Code, which we refer to as Chapter 11, in the United States Bankruptcy Court for the Southern District of New York, which we refer to as the Bankruptcy Court. In addition, subsequent to September 15, 2014, five additional subsidiaries of NII Holdings, Inc. filed voluntary petitions seeking relief under Chapter 11 in the Bankruptcy Court. We refer to the companies that filed voluntary petitions seeking relief under Chapter 11 collectively as the Debtors. Nextel Brazil and our previous other operating subsidiaries in Latin America were not Debtors in these Chapter 11 cases. On June 19, 2015, the Bankruptcy Court entered an order approving and confirming the First Amended Joint Plan of Reorganization Proposed by the Plan Debtors and the Official Committee of Unsecured Creditors, dated April 20, 2015. We refer to this plan, as amended, as the Plan of Reorganization. On June 26, 2015, the conditions of the Bankruptcy Court's order and the Plan of Reorganization were satisfied, the Plan of Reorganization became effective, and we and the other Debtors emerged from the Chapter 11 proceedings. We refer to June 26, 2015 as the Emergence Date. The significant transactions that occurred on the Emergence Date in connection with the effectiveness of our Plan of Reorganization included the following:
In connection with our emergence from Chapter 11, we were required to apply the provisions of fresh start accounting to our financial statements. Because our results of operations during the period from June 26, 2015 to June 30, 2015 were not material, we applied fresh start accounting to our consolidated financial statements as of the close of business on June 30, 2015. Under the principles of fresh start accounting, a new reporting entity is considered to be created, and as a result, we allocated the reorganization value of NII Holdings as of June 30, 2015 to our individual assets based on their estimated fair values at the date we applied fresh start accounting. The components of our reorganization items were as follows (in thousands):
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Impairment, Restructuring and Other Charges |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment, Restructuring and Other Charges | Impairment, Restructuring and Other Charges Asset Impairments. Long-Lived Asset Impairment. During the third quarter of 2016, we reviewed our Nextel Brazil segment for potential impairment. While we are focused on effectively managing our business in Brazil, we are also considering potential strategic alternatives with third parties. Taking into consideration the current macroeconomic conditions in Brazil, our history of operating losses and the available sources of capital to fund our business plan, we currently believe that the most likely outcome for the future of our business is the sale of Nextel Brazil. We compared the then $1.7 billion carrying value of Nextel Brazil's long-lived assets to our estimate of undiscounted future cash flows. Our estimate of undiscounted future cash flows was probability-weighted and took into consideration our ability to obtain capital necessary to fund our business plan. In addition, we assumed that the proceeds from any potential sale of Nextel Brazil would be significantly less than its carrying value as of September 30, 2016. Based on our current estimates, we determined that the carrying value of our Nextel Brazil segment is not fully recoverable. As a result, in the third quarter of 2016, we recorded a non-cash asset impairment charge of $1.31 billion to reduce the carrying values of Nextel Brazil's long-lived assets to their respective fair values. We estimated the fair value of our Nextel Brazil segment using a market approach. While we may ultimately complete a sale with a third party that is valued at more or less than our current market value, we estimated the fair value of our equity based on our market capitalization as of September 30, 2016 and combined it with the fair value of our outstanding debt obligations to determine the impairment charge. See Note 7 for more information on our estimate of the fair value of our debt obligations. We allocated the non-cash asset impairment charge first to reduce the $36.8 million carrying value of our trademark intangible asset to zero, and the remainder between property, plant and equipment, and spectrum licenses on a pro rata basis. We expect to finalize this allocation in the fourth quarter of 2016. Other Asset Impairments. During the three and nine months ended September 30, 2016, Nextel Brazil recognized $5.2 million and $13.4 million, in non-cash impairment charges, respectively, primarily related to the abandonment of certain transmitter and receiver sites that are no longer required in its business. Similarly, during the three months ended September 30, 2015 and the six months ended June 30, 2015, Nextel Brazil recognized $4.0 million and $27.8 million in non-cash asset impairment charges, respectively, the majority of which related to the abandonment of certain transmitter and receiver sites that are no longer required in its business. Restructuring Charges. During the three and nine months ended September 30, 2016, we recognized $0.4 million and $3.4 million, respectively, in severance and other related costs at the corporate level as a result of the separation of employees in an effort to streamline our organizational structure and reduce general and administrative expenses. During the three and nine months ended September 30, 2016, Nextel Brazil recognized $6.2 million and $11.4 million in restructuring charges primarily related to future lease costs for certain transmitter and receiver sites that are no longer required in its business and certain office closures. During the six months ended June 30, 2015, we recognized $5.4 million in severance and other related costs at the corporate level as a result of the separation of employees in an effort to streamline our organizational structure and reduce general and administrative expenses. Total impairment, restructuring and other charges for the three and nine months ended September 30, 2016, for the three months ended September 30, 2015 and for the six months ended June 30, 2015 were as follows (in thousands):
As of September 30, 2016, total accrued restructuring charges were as follows (in thousands):
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Supplemental Financial Statement Information |
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Supplemental Financial Statement Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Statement Information | Supplemental Financial Statement Information Prepaid Expenses and Other. The components of our prepaid expenses and other current assets are as follows:
Property, Plant and Equipment, Net. During the three and nine months ended September 30, 2016, the three months ended September 30, 2015 and the six months ended June 30, 2015, we capitalized immaterial amounts of interest. The components of our property, plant and equipment, net are as follows:
Intangible Assets, Net. Our intangible assets include the following:
Based on the carrying amount of our intangible assets as of September 30, 2016 and current exchange rates, we estimate amortization expense for each of the next five years ending December 31 to be as follows (in thousands):
Actual amortization expense to be reported in future periods could differ from these estimates as a result of additional acquisitions of intangibles, as well as changes in foreign currency exchange rates and other relevant factors. Restricted Cash. As of September 30, 2016, we classified $168.9 million of our restricted cash as prepaid expenses and other in our condensed consolidated balance sheet, and we classified the remainder as other assets. As of December 31, 2015, almost all of our restricted cash was classified as other assets in our consolidated balance sheet. The components of our restricted cash are as follows:
Other Assets. The components of our other long-term assets are as follows:
Accrued Expenses and Other. The components of our accrued expenses and other are as follows:
Brazil Spectrum Payable. In December 2015, Nextel Brazil participated in a spectrum auction and was the successful bidder for 30 megahertz, or MHz, of spectrum in the 1.8 gigahertz, or GHz, band for 455 million Brazilian reais, or approximately $116.7 million based on foreign currency exchange rates at the time. The spectrum license has an initial term of 15 years with an optional 15-year renewal period. In July 2016, Nextel Brazil paid 45.5 million Brazilian reais, or approximately $14.0 million based on foreign currency exchange rates at the time, in connection with the signing of this license agreement. The remaining 409.5 million Brazilian reais, plus accrued interest of 1% per month and annual inflationary adjustments, is due in six annual installments, beginning in July 2019. If we elect to pay or refinance the full amount of the remaining 409.5 million Brazilian reais by December 9, 2016, the Brazilian telecommunciations regulator will waive interest. If we elect not to pay the remaining amount prior to December 9, 2016, we will have accepted the financing option discussed above, and we will accrue interest retroactively. Should we decide to accept the financing option, we would need to obtain a waiver from one of our existing lenders due to limitations on incremental indebtedness. Because this amount is not currently considered indebtedness, as of September 30, 2016, we did not record $2.7 million in accrued interest related to this spectrum payable. Accumulated Other Comprehensive Loss. As of September 30, 2016 and December 31, 2015, the tax impact on our accumulated other comprehensive loss was not material. In addition, as of September 30, 2016 and December 31, 2015, all of our accumulated other comprehensive loss represented cumulative foreign currency translation adjustment. Supplemental Cash Flow Information.
In connection with the completion of the sale of Nextel Argentina to Grupo Clarin in January 2016, the promissory note that was initially issued in connection with this transaction was canceled. See Note 5 for more information. In addition, as of September 30, 2016, we recorded $126.0 million as a component of current liabilities on our condensed consolidated balance sheet in connection with the signing of the license agreement related to our acquisition of 30 MHz of spectrum in the 1.8 GHz band in July 2016. Other than these two transactions, we did not have any significant non-cash investing or financing activities during the nine months ended September 30, 2016. For the three months ended September 30, 2015, we had $19.0 million in non-cash investing and financing activities, the majority of which related to U.S. treasury bills that we received in connection with the sale of Nextel Argentina. For the six months ended June 30, 2015, we had the following non-cash investing and financing activities:
Revenue-Based Taxes. We record certain revenue-based taxes and other excise taxes on a gross basis as a component of both service and other revenues and selling, general and administrative expenses in our condensed consolidated financial statements. For the three and nine months ended September 30, 2016, we recognized $11.5 million and $36.8 million, respectively, in revenue-based taxes and other excise taxes. For the three months ended September 30, 2015 and six months ended June 30, 2015, we recognized $9.3 million and $39.0 million, respectively, in revenue-based taxes and other excise taxes. Diluted Net (Loss) Income Per Common Share. As presented for the three and nine months ended September 30, 2016, our calculation of diluted net loss from continuing operations per common share is based on the weighted average number of common shares outstanding during those periods and does not include other potential common shares, including shares issuable upon the potential exercise of stock options under our stock-based employee compensation plans or restricted common shares issued under those plans since their effect would have been antidilutive. As presented for the three months ended September 30, 2015, our calculation of diluted net loss from continuing operations per common share did not include 0.6 million restricted common shares because their effect would have been antidilutive. As presented for the six months ended June 30, 2015, our calculation of diluted net income from continuing operations per common share includes 0.3 million restricted common shares. Our calculations of diluted net loss from continuing operations per common share for the three months ended September 30, 2015 and diluted net income from continuing operations per common share for the six months ended June 30, 2015 do not include any other potential common shares, including shares issuable upon the potential exercise of stock options issued under our stock-based employee compensation plans since their effect would have been antidilutive. For both the three and nine months ended September 30, 2016, we did not include 3.3 million and 3.5 million stock options, respectively, in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. For the three and nine months ended September 30, 2016, we did not include 0.7 million and 0.8 million restricted common shares, respectively, in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. In addition, for the three months ended September 30, 2015 and the six months ended June 30, 2015, we did not include 1.6 million and 4.8 million stock options, respectively, in our calculation of diluted net income from continuing operations per common share because their effect would have been antidilutive. |
Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations Sale of Nextel Argentina. On September 11, 2015, NII Mercosur Telecom, S.L.U. and NII Mercosur Moviles, S.L.U., both of which are indirect subsidiaries of NII Holdings, entered into a binding agreement with Grupo Clarin relating to the sale of all of the outstanding equity interests of Nextel Argentina. This agreement provided for aggregate cash consideration of $178.0 million, of which $159.0 million was paid at signing in connection with the transfer of a 49% equity interest in Nextel Argentina and the grant of a call option that allowed Grupo Clarin or any of its affiliates to acquire the remaining 51% equity interest in Nextel Argentina upon receipt of required approvals from the regulatory authorities in Argentina. We received the remaining cash consideration in October 2015, including $6.0 million deposited in escrow to satisfy potential indemnification claims. On January 27, 2016, the agreement was amended to permit Grupo Clarin or any of it affiliates to exercise the right to acquire the remaining 51% equity interest prior to receiving regulatory approval, and Grupo Clarin and its affiliates immediately acquired the remaining 51% of Nextel Argentina for no additional proceeds. In September 2016, Grupo Clarin released $4.5 million of the escrow to us. Sale of Nextel Mexico. On April 30, 2015, we, together with our wholly-owned subsidiary NIU Holdings LLC, completed the sale of our Mexican operations to New Cingular Wireless, an indirect subsidiary of AT&T. The transaction was structured as a sale of all of the outstanding stock of the parent company of Comunicaciones Nextel de Mexico, S.A. de C.V., or Nextel Mexico, for a purchase price of $1.875 billion, including $187.5 million deposited in escrow to satisfy potential indemnification claims. The net proceeds from this sale were $1.448 billion after deducting Nextel Mexico's outstanding indebtedness and applying other specified price adjustments. As of September 30, 2016, we paid $4.2 million out of escrow to settle an indemnification claim, and in exchange, New Cingular Wireless released $16.0 million of the escrow to us in June 2016 and an additional $4.0 million in October 2016. As of September 30, 2016, $167.4 million remained in escrow. To the extent there are no outstanding claims, the remaining amount held in escrow is scheduled to be released to us on April 30, 2017. If any new claims are submitted in the future, the amount and timing of the release of the remaining funds in escrow could be impacted. We are currently subject to various ongoing tax audits by the federal Mexican authorities related to certain years prior to the sale of Nextel Mexico for which we have indemnified New Cingular Wireless. To date, we have received one assessment in the amount of $10.0 million, which we are vigorously contesting through an administrative appeals process. Sale of Nextel Chile. In August 2014, our wholly-owned subsidiaries NII Mercosur Telecom, S.L.U., NII Mercosur Moviles, S.L.U. and NII International Telecom S.C.A. completed the sale of all of the outstanding equity interests in our wholly-owned subsidiary, Nextel Chile, S.A., or Nextel Chile, to Fucata, S.A., a venture comprised of Grupo Veintitres and Optimum Advisors, for a de minimus amount. Sale of Nextel Peru. In August 2013, our wholly-owned subsidiaries NII Mercosur Telecom, S.L.U. and NII Mercosur Moviles, S.L.U., completed the sale of all of the outstanding equity interests of our wholly-owned subsidiary, Nextel del Peru, S.A., or Nextel Peru, to Empresa Nacional de Telecomunicaciones S.A. and one of its subsidiaries, Entel Inversiones, S.A., which we refer to collectively as Entel. Entel has provided notice of potential claims for amounts greater than the $34.4 million that remained in escrow as of September 30, 2016 to satisfy these claims. We believe that the requirements for payment of certain indemnification claims have not been met at this time, and we intend to vigorously contest these claims. As of September 30, 2016, we accrued $17.3 million related to the potential settlement of these claims. The time period for additional claims against the amount held in escrow lapsed in February 2015. In connection with the sales of Nextel Argentina and Nextel Mexico, we have reported the results of these operating companies as discontinued operations in this quarterly report on Form 10-Q. Accordingly, we reclassified Nextel Argentina's and Nextel Mexico's results of operations for all periods presented to reflect these former operating companies as discontinued operations. Unless otherwise noted, amounts included in these notes to our condensed consolidated financial statements exclude amounts attributable to discontinued operations. The major components of (loss) income from discontinued operations related to Nextel Argentina and Nextel Mexico were as follows (in thousands):
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Debt |
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Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt As a result of the implementation of fresh start accounting in connection with our emergence from Chapter 11, we remeasured the components of our debt to their fair values as of June 30, 2015. As a result, the carrying values of our bank loans and equipment financing facility do not represent their respective outstanding principal balances. The components of our debt are as follows:
Brazil Bank Loans. In connection with the agreements governing Nextel Brazil's local bank loans, we are required to meet a net debt financial covenant semiannually. In August 2016, Nextel Brazil secured waivers from the lenders of its local bank loans related to this financial covenant for the June 30, 2016 measurement date. The next measurement date for this financial covenant will be December 31, 2016, at which point Nextel Brazil must maintain a net debt to earnings before interest, taxes, depreciation and amortization, or EBITDA, ratio over the trailing 12 months of no greater than 3.5. Starting on June 30, 2017, and on each six-month anniversary thereafter, Nextel Brazil must maintain a net debt to EBITDA ratio of no greater than 2.5. Based on our current outlook, which reflects significant uncertainly about the economic and competitive conditions in Brazil that are currently impacting our ability to increase our revenues and generate profitability, we believe it is unlikely that we will satisfy the applicable financial covenant included in both of Nextel Brazil's local bank loan agreements as of the December 31, 2016 measurement date. As a result, we have requested waivers from the lenders in order to avoid a potential default under the loan agreements. If a default under these local bank loans occurs, the lenders could require us to repay the amounts outstanding under these arrangements. As a result of this uncertainty, we have continued to classify the amounts outstanding under Nextel Brazil's local bank loans as current liabilities in our condensed consolidated balance sheet as of September 30, 2016. As of September 30, 2016, we had $255.1 million principal amount outstanding under Nextel Brazil's local bank loans. Brazil Equipment Financing Facility. In December 2014, Nextel Brazil and the lender under its equipment financing facility agreed to amend this facility to remove all financial covenants beginning with the December 31, 2014 measurement date through the June 30, 2017 measurement date so that the first measurement date under the amended facility will be December 31, 2017. Because of the uncertainty regarding our ability to meet the financial covenant contained in Nextel Brazil's local bank loans discussed above and certain cross-default provisions that are included in the loan agreement under Nextel Brazil's equipment financing facility, we have continued to classify the amount outstanding under this facility as a current liability in our condensed consolidated balance sheet as of September 30, 2016. As of September 30, 2016, we had $293.6 million principal amount outstanding under Nextel Brazil's equipment financing facility. We do not have the ability to borrow additional amounts under this facility. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Nextel Argentina. On September 11, 2015, two of our indirect subsidiaries entered into a binding agreement with Grupo Clarin relating to the sale of all of the outstanding equity interests of Nextel Argentina. In connection with the initial agreement, we issued a non-recourse promissory note in the amount of $85.0 million and pledged the remaining 51% of the equity interests in Nextel Argentina to Grupo Clarin. As of December 31, 2015, we recorded our retained 51% interest in Nextel Argentina as an equity method investment under the fair value option, which was included as a component of other assets in our consolidated balance sheet. As of December 31, 2015, we estimated the fair value of this investment to be $108.1 million. In addition, as of December 31, 2015, we recorded the non-recourse promissory note as a component of other long-term liabilities in our consolidated balance sheet at its estimated fair value of $108.1 million. This fair value estimate was based on the $178.0 million purchase price paid by Grupo Clarin, as adjusted for changes in excess cash from September 11, 2015 through December 31, 2015. On January 27, 2016, the agreement was amended to permit Grupo Clarin or any of its affiliates to exercise the right to acquire the remaining 51% equity interest prior to receiving regulatory approval, and Grupo Clarin and its affiliate immediately acquired the remaining 51% of Nextel Argentina for no additional proceeds. In connection with the completion of this transaction, the promissory note was canceled on January 27, 2016. Financial Instruments. Available-for-Sale Securities. As of September 30, 2016 and December 31, 2015, available-for-sale securities held by Nextel Brazil included $15.2 million and $56.2 million, respectively, in investment funds and $6.6 million and $9.3 million, respectively, in certificates of deposit with a Brazilian bank. These funds invest primarily in Brazilian government bonds, long-term, low-risk bank certificates of deposit and Brazilian corporate debentures. During the three and nine months ended September 30, 2016, the three months ended September 30, 2015 and the six months ended June 30, 2015, we did not have any material unrealized gains or losses associated with these investments. We account for our available-for-sale securities at fair value. The fair value of our Brazilian certificates of deposit is based on their current redemption amount, and we classify these certificates of deposit within Level 2 of the fair value hierarchy. The fair value of Nextel Brazil's investment funds is measured based on the funds' net asset value as a practical expedient, which is excluded from the fair value hierarchy. Held-to-Maturity Investments. We periodically invest some of our cash holdings in certain securities that we intend to hold to maturity. As of December 31, 2015, held-to-maturity investments included $18.1 million in short-term investments held by NIIT in U.S. treasury notes. We account for held-to-maturity securities at amortized cost, which approximates the fair value observed in the market. As of December 31, 2015, the fair value of our held-to-maturity investments was $18.0 million. These securities matured in February 2016. Debt Instruments. The carrying amounts and estimated fair values of our debt instruments are as follows:
Bank loans and other consists primarily of loans with certain banks in Brazil. We estimated the fair value of these bank loans, as well as the fair value of our equipment financing facility in Brazil, utilizing inputs such as U.S. Treasury security yield curves, prices of comparable bonds, LIBOR, U.S. Treasury bond rates and credit spreads on comparable publicly traded bonds. We consider both Nextel Brazil's equipment financing facility and its bank loans and other to be Level 3 in the fair value hierarchy. Derivative Instruments. We occasionally enter into derivative transactions for risk management purposes. We have not and will not enter into any derivative transactions for speculative or profit generating purposes. We record all derivative instruments as either assets or liabilities in our condensed consolidated balance sheet at their fair value. As of September 30, 2016 and December 31, 2015, Nextel Brazil had an immaterial amount of derivative instruments that were classified as short-term investments in our condensed consolidated balance sheets. We consider this measurement to be Level 3 in the fair value hierarchy. Nextel Brazil entered into foreign currency option agreements to manage the foreign currency exposures associated with the forecasted purchase of handsets and other U.S. dollar-denominated payments. We do not apply hedge accounting to these derivative instruments. As a result, we have included all changes in the fair value of these instruments as a component of other (expense) income, net in our condensed consolidated statement of comprehensive (loss) income. For the three months ended September 30, 2016, Nextel Brazil recognized an immaterial amount of realized and unrealized losses resulting from changes in the estimated fair value of its derivative instruments. For the nine months ended September 30, 2016, Nextel Brazil recognized $3.0 million in realized losses resulting from changes in the estimated fair value of its derivative instruments. Unrealized losses recognized during the nine months ended September 30, 2016 were not material. For the three months ended September 30, 2015 and the six months ended June 30, 2015, Nextel Brazil recognized $3.1 million and $6.3 million in realized gains, respectively, resulting from the changes in the estimated fair value of these derivative instruments. In addition, for the three months ended September 30, 2015 and the six months ended June 30, 2015, Nextel Brazil recorded $3.2 million in unrealized gains and $1.3 million in unrealized losses, respectively, resulting from the changes in the estimated fair value of these derivative instruments. Other Financial Instruments. The carrying values of cash and cash equivalents, accounts receivable and accounts payable contained in our condensed consolidated balance sheets approximate their fair values due to the short-term nature of these instruments. |
Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Brazil RAN Sharing Commitment. In May 2016, Nextel Brazil entered into an amendment to a nationwide roaming voice and data services agreement with Telefonica Brazil, S.A., or Telefonica, to reduce the usage rates for roaming traffic. Concurrently, Nextel Brazil entered into a 10-year radio access network, or RAN, sharing agreement with Telefonica, under which Telefonica will permit Nextel Brazil to use its tower and equipment infrastructure to transmit telecommunications signals on Nextel Brazil's spectrum. These agreements require Nextel Brazil to meet certain minimum annual commitments over a five-year period totaling 800 million Brazilian reais, or approximately $246.2 million based on foreign currency exchange rates at the time, which replaced the remaining commitments under the original roaming agreement. Nextel Brazil was required to prepay 250 million Brazilian reais shortly after the agreements became effective with receipt of regulatory approvals, which occurred in August 2016. We are allocating the aggregate 800 million Brazilian reais in minimum payments on a relative fair value basis to the services being received. We are recognizing approximately 318 million Brazilian reais on a ratable basis over a period of five years for the amended roaming agreement, which began in August 2016, and approximately 482 million Brazilian reais on a ratable basis over a period of eight years for the RAN sharing agreement, which will begin in the fourth quarter of 2016. In addition, in order to reduce future operating expenses, we intend to cease the use of approximately 2,000 of our transmitter and receiver sites, which we expect will result in restructuring charges related to the termination of the leases governing these sites of approximately $50.0 million. We expect to recognize these restructuring charges over the course of the next three quarters. Contingencies. Nextel Brazil has received various assessment notices from state and federal Brazilian authorities asserting deficiencies in payments related primarily to value-added taxes, excise taxes on imported equipment and other non-income based taxes. Nextel Brazil has filed various administrative and legal petitions disputing these assessments. In some cases, Nextel Brazil has received favorable decisions, which are currently being appealed by the respective governmental authority. In other cases, Nextel Brazil's petitions have been denied, and Nextel Brazil is currently appealing those decisions. Nextel Brazil also had contingencies related to certain regulatory, civil and labor-related matters as of September 30, 2016 and December 31, 2015. As of September 30, 2016 and December 31, 2015, Nextel Brazil had accrued liabilities of $70.9 million and $57.7 million, respectively, related to contingencies, of which $1.5 million and $5.4 million related to unasserted claims, respectively. We currently estimate the reasonably possible losses related to matters for which Nextel Brazil has not accrued liabilities, as they are not deemed probable, to be approximately $480.0 million as of September 30, 2016. We continue to evaluate the likelihood of probable and reasonably possible losses, if any, related to all known contingencies. As a result, future increases or decreases to our accrued liabilities may be necessary and will be recorded in the period when such amounts are determined to be probable and reasonably estimable. In addition, as of September 30, 2016, we estimated the reasonably possible losses related to potential indemnification claims in connection with the sales of Nextel Mexico and Nextel Peru for which we have not accrued liabilities, as they are not deemed probable, to be approximately $27.0 million. Legal Proceedings. We are subject to claims and legal actions that may arise in the ordinary course of business. We do not believe that any of these pending claims or legal actions will have a material effect on our business, financial condition, results of operations or cash flows. |
Income Taxes |
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Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The realization of deferred tax assets is dependent on the generation of future taxable income sufficient to realize our tax loss carryforwards and other tax deductions. Valuation allowances are required to be recognized on deferred tax assets unless it is determined that it is “more-likely-than-not” that the asset will be realized. In 2015, we recorded full valuation allowances on the deferred tax assets of our foreign operating companies, our U.S. parent company and subsidiaries and our foreign holding companies due to substantial negative evidence such as the recent history of cumulative losses and the projected losses for 2016 and subsequent years. We maintained this same valuation allowance position through the first nine months of 2016. |
Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting We have determined our reportable segment based on our method of internal reporting, which disaggregates our business by geographic location. We evaluate performance and provide resources to it based on operating income before depreciation, amortization and impairment, restructuring and other charges, which we refer to as segment earnings. Nextel Brazil is our only reportable operating segment.
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Basis of Presentation Basis of Presentation (Policies) |
9 Months Ended |
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Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue-Based Taxes | Revenue-Based Taxes. We record certain revenue-based taxes and other excise taxes on a gross basis as a component of both service and other revenues and selling, general and administrative expenses in our condensed consolidated financial statements. For the three and nine months ended September 30, 2016, we recognized $11.5 million and $36.8 million, respectively, in revenue-based taxes and other excise taxes. For the three months ended September 30, 2015 and six months ended June 30, 2015, we recognized $9.3 million and $39.0 million, respectively, in revenue-based taxes and other excise taxes. |
Diluted Net (Loss) Income Per Common Share | Diluted Net (Loss) Income Per Common Share. As presented for the three and nine months ended September 30, 2016, our calculation of diluted net loss from continuing operations per common share is based on the weighted average number of common shares outstanding during those periods and does not include other potential common shares, including shares issuable upon the potential exercise of stock options under our stock-based employee compensation plans or restricted common shares issued under those plans since their effect would have been antidilutive. As presented for the three months ended September 30, 2015, our calculation of diluted net loss from continuing operations per common share did not include 0.6 million restricted common shares because their effect would have been antidilutive. As presented for the six months ended June 30, 2015, our calculation of diluted net income from continuing operations per common share includes 0.3 million restricted common shares. Our calculations of diluted net loss from continuing operations per common share for the three months ended September 30, 2015 and diluted net income from continuing operations per common share for the six months ended June 30, 2015 do not include any other potential common shares, including shares issuable upon the potential exercise of stock options issued under our stock-based employee compensation plans since their effect would have been antidilutive. For both the three and nine months ended September 30, 2016, we did not include 3.3 million and 3.5 million stock options, respectively, in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. For the three and nine months ended September 30, 2016, we did not include 0.7 million and 0.8 million restricted common shares, respectively, in our calculation of diluted net loss from continuing operations per common share because their effect would have been antidilutive. In addition, for the three months ended September 30, 2015 and the six months ended June 30, 2015, we did not include 1.6 million and 4.8 million stock options, respectively, in our calculation of diluted net income from continuing operations per common share because their effect would have been antidilutive. |
Emergence from Chapter 11 Proceedings and Fresh Start Accounting (Tables) |
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Reorganizations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Reorganization Items | The components of our reorganization items were as follows (in thousands):
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Impairment, Restructuring and Other Charges (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Impairment and Restructuring Charges | Total impairment, restructuring and other charges for the three and nine months ended September 30, 2016, for the three months ended September 30, 2015 and for the six months ended June 30, 2015 were as follows (in thousands):
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Schedule of Total Accrued Restructuring Charges | As of September 30, 2016, total accrued restructuring charges were as follows (in thousands):
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Supplemental Financial Statement Information (Tables) |
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Supplemental Financial Statement Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prepaid Expenses and Other | The components of our prepaid expenses and other current assets are as follows:
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Schedule of Property, Plant and Equipment, Net | The components of our property, plant and equipment, net are as follows:
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Schedule of Intangible Assets, Net | Our intangible assets include the following:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Based on the carrying amount of our intangible assets as of September 30, 2016 and current exchange rates, we estimate amortization expense for each of the next five years ending December 31 to be as follows (in thousands):
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Schedule of Restricted Cash | The components of our restricted cash are as follows:
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Schedule of Other Assets | The components of our other long-term assets are as follows:
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Schedule of Accrued Expenses and Other | The components of our accrued expenses and other are as follows:
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Schedule of Supplemental Cash Flow Information | Supplemental Cash Flow Information.
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Discontinued Operations (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Major Components of Income (Loss) from Discontinued Operations | The major components of (loss) income from discontinued operations related to Nextel Argentina and Nextel Mexico were as follows (in thousands):
|
Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Debt | The components of our debt are as follows:
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of carrying amounts and estimated fair values of debt | The carrying amounts and estimated fair values of our debt instruments are as follows:
|
Segment Reporting (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information |
|
Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Sep. 30, 2016 |
|
Prior period reclassification adjustment | $ 6,900 | |
Cash and investments on hand | $ 311,700 | |
Brazil | ||
Cash pledged as collateral | 85,200 | |
Principal amount outstanding | 255,100 | |
Brazil equipment financing facility | 293,600 | |
Nextel Argentina, Nextel Mexico, and Nextel Peru | ||
Cash in escrow | 203,300 | |
Successor Company | ||
Prior period reclassification adjustment | 6,900 | |
Accumulated deficit adjustment | 6,800 | |
Accumulated other comprehensive loss adjustment | $ 100 | |
Change in prior period earnings per share | $ 0.07 | |
Successor Company | Brazil | ||
Brazil equipment financing facility | $ 339,850 | $ 291,438 |
Emergence From Chapter 11 Proceedings and Fresh Start Accounting - Components of Reorganization (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Sep. 30, 2016 |
|
Successor Company | ||||
Gain on settlement of liabilities subject to compromise | $ 0 | $ 0 | $ 0 | |
Net gain on fresh start fair value adjustments | 0 | 0 | 0 | |
Reorganization-related professional fees and other costs | (150) | 2,144 | (748) | |
Total reorganization items | $ (150) | $ 2,144 | (748) | |
Predecessor Company | ||||
Gain on settlement of liabilities subject to compromise | $ 1,775,787 | |||
Net gain on fresh start fair value adjustments | 261,772 | |||
Reorganization-related professional fees and other costs | (80,685) | |||
Total reorganization items | $ 1,956,874 | $ (748) |
Impairment, Restructuring and Other Charges - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Sep. 30, 2016 |
|
Nextel Brazil | ||||
Impairment of Long-Lived Assets [Line Items] | ||||
Carrying value of long-lived assets | $ 1,700.0 | $ 1,700.0 | ||
Asset impairment charges | 1,310.0 | $ 4.0 | $ 27.8 | |
Impairment charge | 36.8 | |||
Restructuring charges | 6.2 | 11.4 | ||
Nextel Brazil | Transmitter and Receiver Sites Abandoned | ||||
Impairment of Long-Lived Assets [Line Items] | ||||
Asset impairment charges | 5.2 | 13.4 | ||
Corporate | ||||
Impairment of Long-Lived Assets [Line Items] | ||||
Restructuring charges | $ 0.4 | $ 5.4 | $ 3.4 |
Supplemental Financial Statement Information - Prepaid and Other Assets (Details) - Successor Company - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash in escrow | $ 168,914 | $ 6,000 |
Value-added taxes | 29,147 | 33,467 |
Cash collateral related to performance bonds | 28,465 | 47,450 |
Other prepaid expenses | 22,702 | 11,934 |
Other current assets | 44,866 | 33,683 |
Other Assets, Current | $ 294,094 | $ 132,534 |
Supplemental Financial Statement Information - Property, Plant and Equipment (Details) - Successor Company - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Land | $ 3,194 | $ 2,655 |
Building and leasehold improvements | 1,744 | 11,765 |
Network equipment, communication towers and network software | 103,023 | 492,814 |
Software, office equipment, furniture and fixtures and other | 7,654 | 65,747 |
Less: Accumulated depreciation | 0 | (59,987) |
Property, plant and equipment, gross | 115,615 | 512,994 |
Construction in progress | 5,436 | 42,029 |
Property, plant and equipment, net | $ 121,051 | $ 555,023 |
Supplemental Financial Statement Information - Intangible Assets, Net (Details) - Successor Company - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 278,060 | $ 912,560 |
Accumulated Amortization | (8,662) | (19,938) |
Net Carrying Value | $ 269,398 | 892,622 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 26 years | |
Gross Carrying Value | $ 250,343 | 850,818 |
Accumulated Amortization | 0 | (16,314) |
Net Carrying Value | $ 250,343 | 834,504 |
Tradename | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 26 years | |
Gross Carrying Value | $ 0 | 38,700 |
Accumulated Amortization | 0 | (744) |
Net Carrying Value | $ 0 | 37,956 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Average Useful Life (Years) | 4 years | |
Gross Carrying Value | $ 27,717 | 23,042 |
Accumulated Amortization | (8,662) | (2,880) |
Net Carrying Value | $ 19,055 | $ 20,162 |
Supplemental Financial Statement Information - Future Estimated Amortization Expense (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2016 | $ 37,101 |
2017 | 16,558 |
2018 | 16,558 |
2019 | 13,093 |
2020 | $ 9,629 |
Supplemental Financial Statement Information - Restricted Cash (Details) - Successor Company - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 168,900 | |
Brazil judicial deposits | 84,211 | $ 54,289 |
Restricted Cash and Cash Equivalents | 287,488 | 281,235 |
Nextel Mexico | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash in escrow | 167,414 | 186,593 |
Nextel Peru | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash in escrow | 34,363 | 34,353 |
Argentina | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash in escrow | $ 1,500 | $ 6,000 |
Supplemental Financial Statement Information - Other Assets (Details) - Successor Company - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Restricted cash | $ 118,574 | $ 275,235 |
Cash collateral related to performance bonds | 56,747 | 94,236 |
Equity interest in Nextel Argentina | 0 | 108,148 |
Other | 130,010 | 76,622 |
Other assets | $ 305,331 | $ 554,241 |
Supplemental Financial Statement Information - Accrued Expenses and Other (Details) - Successor Company - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Accrued Liabilities [Line Items] | ||
Brazil spectrum license payable | $ 126,000 | $ 0 |
Contingencies | 67,222 | 49,507 |
Payroll related items and commissions | 46,339 | 31,734 |
Network system and information technology | 46,798 | 32,079 |
Non-income based taxes | 26,569 | 33,097 |
Capital expenditures | 9,131 | 25,182 |
Other | 68,704 | 97,259 |
Accrued expenses and other | $ 390,763 | $ 268,858 |
Supplemental Financial Statement Information - Brazil Spectrum Payable (Narrative) (Details) - Nextel Brazil BRL in Millions, $ in Millions |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
installment
|
Sep. 30, 2016
BRL
|
Jul. 31, 2016
BRL
|
Jul. 31, 2016
USD ($)
|
Dec. 31, 2015
BRL
|
Dec. 31, 2015
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||||
Spectrum purchase price | BRL 455.0 | $ 116.7 | ||||
Spectrum license initial term | 15 years | |||||
Spectrum license optional renewal period | 15 years | |||||
License agreement payment | BRL 45.5 | $ 14.0 | ||||
Remaining spectrum commitment | BRL | BRL 409.5 | |||||
Spectrum license accrued interest rate | 1.00% | |||||
Spectrum license annual installments | installment | 6 | |||||
Spectrum license accrued interest not recorded | $ | $ 2.7 |
Supplemental Financial Statement Information - Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Increase (decrease) in restricted cash | $ 187,500 | ||||
Licenses | |||||
License agreement current liabilities | $ 126,000 | $ 126,000 | |||
Nextel Argentina | |||||
Non-cash investing and financing activities, U.S. treasury bills received | 19,000 | ||||
Successor Company | |||||
Cash paid for capital expenditures, including capitalized interest on property, plant and equipment | $ 60,062 | 88,485 | 47,541 | ||
Change in capital expenditures accrued and unpaid or financed, including interest capitalized | (11,672) | (19,282) | (21,971) | ||
Capital expenditures plus accrued unpaid including accreted interest capitalized | 14,439 | 48,390 | 69,203 | 25,570 | |
License agreement current liabilities | $ 1,008,348 | 1,008,348 | $ 905,429 | ||
Successor company common stock value | $ 2,067,700 | ||||
Increase (decrease) in restricted cash | $ 49,329 | $ (67,049) |
Supplemental Financial Statement Information - Revenue Based Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Sep. 30, 2016 |
|
Revenue Recognition [Abstract] | ||||
Revenue Based Taxes And Other Excise Taxes | $ 11.5 | $ 9.3 | $ 39.0 | $ 36.8 |
Supplemental Financial Statement Information - Diluted Net (Loss) Income Per Common Share (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Sep. 30, 2016 |
|
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 0.7 | 0.6 | 0.3 | 0.8 |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 3.3 | 1.6 | 4.8 | 3.5 |
Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Nextel Brazil | ||
Debt Instrument [Line Items] | ||
Brazil equipment financing facility | $ 293,600 | |
Successor Company | ||
Debt Instrument [Line Items] | ||
Brazil bank loans | 263,366 | $ 240,396 |
Other | 311 | 526 |
Total debt | 656,864 | 665,067 |
Less: current portion | (560,123) | (582,420) |
Total debt, excluding current portion | 96,741 | 82,647 |
Successor Company | Nextel Brazil | ||
Debt Instrument [Line Items] | ||
Brazil equipment financing facility | 291,438 | 339,850 |
Brazil capital lease and tower financing obligations | $ 101,749 | $ 84,295 |
Debt - Narrative (Details) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016
USD ($)
|
---|---|---|---|
Nextel Brazil | |||
Principal amount outstanding | $ 255.1 | ||
Principal amount outstanding | $ 293.6 | ||
Forecast | |||
Net debt to EBITDA ratio (no greater than) | 2.5 | 3.5 | |
Net debt to EBITDA ratio requirement, anniversary period | 6 months |
Fair Value Measurements - Nextel Argentina Sale (Details) - Argentina $ in Millions |
Sep. 11, 2015
USD ($)
subsidiary
|
Jan. 27, 2016 |
Dec. 31, 2015
USD ($)
|
---|---|---|---|
Remaining equity interests | 51.00% | 51.00% | 51.00% |
Purchase price | $ 178.0 | ||
Successor Company | |||
Number of indirect subsidiaries entered into binding agreement | subsidiary | 2 | ||
Notes issued | $ 85.0 | ||
Fair value of investment | $ 108.1 | ||
Purchase price | $ 178.0 |
Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Sep. 30, 2015 |
Jun. 30, 2015 |
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Held-to-maturity investments | $ 18.0 | |||
Realized gains (losses) | $ 3.1 | $ 6.3 | $ 3.0 | |
Unrealized gains (losses) | $ 3.2 | $ 1.3 | ||
Brazil | ||||
Short-term investments | 15.2 | 56.2 | ||
Certificates of deposit | $ 6.6 | 9.3 | ||
NIIT | ||||
Held-to-maturity investments | $ 18.1 |
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Long-Term Debt Instrument (Details) - Successor Company - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Principal Amount Outstanding | $ 548,971 | $ 576,795 |
Carrying Amount | 555,115 | 580,772 |
Estimated Fair Value | 512,785 | 569,555 |
Brazil equipment financing | ||
Principal Amount Outstanding | 293,550 | 342,475 |
Carrying Amount | 291,438 | 339,850 |
Estimated Fair Value | 274,993 | 340,189 |
Brazil bank loans and other | ||
Principal Amount Outstanding | 255,421 | 234,320 |
Carrying Amount | 263,677 | 240,922 |
Estimated Fair Value | $ 237,792 | $ 229,366 |
Commitments and Contingencies - Narrative (Details) site in Thousands, BRL in Millions, $ in Millions |
1 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
May 31, 2016
BRL
|
Sep. 30, 2016
BRL
site
|
Sep. 30, 2016
USD ($)
|
Aug. 31, 2016
USD ($)
|
May 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Estimate of reasonably possible losses, not deemed probable | $ 480.0 | |||||
Estimate of reasonably possible losses, not deemed probable | 27.0 | |||||
Nextel Brazil | ||||||
Minimum annual commitment period | 5 years | |||||
Minimum annual commitment | BRL 800 | $ 246.2 | ||||
Amount required to repay | $ 250.0 | |||||
Minimum annual commitment recognized over period of 5 years | BRL | BRL 318 | |||||
Minimum annual commitment recognized over period of 8 years | BRL | BRL 482 | |||||
Number of transmitter and receiver sites to cease use | site | 2 | |||||
Expected restructuring charges | 50.0 | |||||
Expected period to recognize restructuring charges | 9 months | |||||
Accrued liabilities | 70.9 | $ 57.7 | ||||
Accrued liabilities related to unasserted claims | $ 1.5 | $ 5.4 |
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