DIVESTITURES

12 Months Ended

Dec. 31, 2021

DIVESTITURES

DIVESTITURES

5.DIVESTITURES

On September 22, 2021, we entered into a definitive agreement to sell substantially all of the assets of our non-core, rural ILEC business located in Ohio, Consolidated Communications of Ohio Company (“CCOC”), for approximately $26.0 million in cash, subject to a customary working capital adjustment.  CCOC provides telecommunications and data services to residential and business customers in 11 rural communities in Ohio and surrounding areas and includes approximately 4,000 access lines and 3,900 data connections. Subsequent to December 31, 2021, the parties received all required regulatory approvals and the transaction closed on February 1, 2022. The asset sale aligns with our strategic asset review and focus on our core broadband regions.

At December 31, 2021, the major classes of assets and liabilities to be sold were classified as held for sale in the consolidated balance sheet and consisted of the following:

(In thousands)
Current assets	$	196
Property, plant and equipment		9,529
Goodwill		16,327
Total assets	$	26,052
Current liabilities	$	91
Other long-term liabilities		6
Total liabilities	$	97

In connection with the classification as assets held for sale, the carrying value of the net assets were reduced to their estimated fair value of approximately $25.9 million, which was determined based on the estimated selling price less costs to sell and were classified as Level 2 within the fair value hierarchy.  As a result, we recognized an impairment loss of $5.7 million during the year ended December 31, 2021.  

Subsequent to December 31, 2021, we entered into a definitive agreement on March 2, 2022 to sell substantially all the assets of our business located in the Kansas City market (the “Kansas City operations”). The Kansas City operations provides data, voice and video services to customers within the Kansas City metropolitan area and surrounding counties and includes approximately 19,000 consumer customers and 1,900 commercial customers. The transaction is expected to close in the second half of 2022 and is subject to the receipt of all customary regulatory approvals and the satisfaction of other closing conditions. We estimate that the pre-tax impairment loss to be recognized during the quarter ended March 31, 2022 will range from $125.0 million to $130.0 million, which includes approximately $90.0 million in allocated goodwill.