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Asset Sales
12 Months Ended
Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Asset Sales

Note 5. Asset Sales

Sale of Five Service Areas

On June 30, 2021, the Company entered into the Atlantic Purchase Agreement and the Astound Purchase Agreement for approximately $1.125 billion and $661.0 million, respectively. Refer to Note 1 – Organization and Basis of Presentation for a discussion of the Company’s discontinued operations.

The Atlantic Purchase Agreement closed on September 1, 2021, as a result of which the Company received net proceeds of $1.1 billion and recorded a gain of $689.8 million. Additionally, the Astound Purchase Agreement was completed on November 1, 2021, as a result of which the Company received net proceeds of $653.2 million and recorded a gain of $311.5 million. The gains are reported within discontinued operations in the consolidated statement of operations for the year ended December 31, 2021. The Company retained certain estimated construction related liabilities presented in accounts payable – trade in the Company’s consolidated balance sheet as of December 31, 2021.

As of December 31, 2021, the Company utilized the net proceeds from the sales to repay and refinance its long-term debt. Refer to Note 10 – Long-Term Debt and Finance Lease Obligations for additional information.

In connection with the closing of the Atlantic Purchase Agreement and the Astound Purchase Agreement, the Company entered into a one year Transition Services Agreement with each buyer in which the Company will provide certain transition services to both buyers. The services to be provided under each Transition Services Agreement relate primarily to information technology, network, sales and business support.

Income earned under these agreements is presented in other income, net in the consolidated statement of operations and associated receivables are presented in accounts receivable – other, net in the Company’s consolidated balance sheet as of December 31, 2021. The Company recognized $8.5 million of income related to the Transition Services Agreements for the year ended December 31, 2021.