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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2017	Mar. 09, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	SHENANDOAH TELECOMMUNICATIONS CO/VA/
Entity Central Index Key	0000354963
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		49,527,087
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 1.5

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 78,585	$ 36,193
Accounts receivable, net	54,184	69,789
Income taxes receivable	17,311	0
Inventory, net	5,704	39,043
Prepaid expenses	17,111	16,440
Total current assets	172,895	161,465
Investments, including $3,279 and $2,907 carried at fair value	11,472	10,276
Property, plant and equipment, net	686,327	698,122
Other Assets:
Intangible assets, net	380,979	454,532
Goodwill	146,497	145,256
Deferred charges and other assets, net	13,690	14,756
Total assets	1,411,860	1,484,407
Current Liabilities:
Current maturities of long-term debt, net of unamortized loan fees	64,397	32,041
Accounts payable	28,953	72,810
Advanced billings and customer deposits	21,153	20,427
Accrued compensation	9,167	9,465
Income taxes payable	0	435
Accrued liabilities and other	13,914	29,085
Total current liabilities	137,584	164,263
Long-term debt, less current maturities, net of unamortized loan fees	757,561	797,224
Other Long-Term Liabilities:
Deferred income taxes	100,879	151,837
Deferred lease	15,782	18,042
Asset retirement obligations	21,211	15,666
Retirement plan obligations	13,328	17,738
Other liabilities	15,293	23,743
Total other liabilities	166,493	227,026
Commitments and Contingencies (Note 12)
Shareholders’ Equity:
Common stock, no par value, authorized 96,000 shares; issued and outstanding 49,328 shares in 2017 and 48,935 shares in 2016	44,787	45,482
Retained earnings	297,205	243,624
Accumulated other comprehensive income (loss), net of taxes	8,230	6,788
Total shareholders’ equity	350,222	295,894
Total liabilities and shareholders’ equity	$ 1,411,860	$ 1,484,407

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current Assets:
Investments at fair value	$ 3,279	$ 2,907
Shareholders' Equity
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	96,000,000	96,000,000
Common stock, shares issued (in shares)	49,328,000	48,935,000
Common stock, shares outstanding (in shares)	49,328,000	48,935,000

- Definition

Fair value portion of investment securities, including, but not limited to, marketable securities, derivative financial instruments, and investments accounted for under the equity method.

+ References + Details

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Operating revenues	$ 611,991	$ 535,288	$ 342,485
Operating expenses:
Cost of goods and services	211,507	193,520	121,330
Selling, general and administrative	165,937	133,325	72,821
Acquisition, integration and migration expenses	11,030	42,232	3,546
Depreciation and amortization	177,007	143,685	70,702
Total operating expenses	565,481	512,762	268,399
Operating income (loss)	46,510	22,526	74,086
Other income (expense):
Interest expense	(38,237)	(25,102)	(7,355)
Gain (loss) on investments, net	564	271	105
Non-operating income (loss), net	4,420	4,250	1,754
Income (loss) before income taxes	13,257	1,945	68,590
Income tax expense (benefit)	(53,133)	2,840	27,726
Net income (loss)	66,390	(895)	40,864
Other comprehensive income (loss):
Unrealized gain (loss) on interest rate hedge, net of tax	1,442	6,373	(707)
Comprehensive income (loss)	$ 67,832	$ 5,478	$ 40,157
Net Income (loss) per share:
Basic (in dollars per share)	$ 1.35	$ (0.02)	$ 0.84
Diluted (in dollars per share)	$ 1.33	$ (0.02)	$ 0.83
Weighted average shares outstanding, basic (in shares)	49,150	48,807	48,388
Weighted average shares outstanding, diluted (in shares)	50,026	48,807	49,024

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Dec. 31, 2014	$ 258,346		$ 29,712	$ 227,512	$ 1,122
Balance (in shares) at Dec. 31, 2014		48,265
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	40,864			40,864
Other comprehensive income (loss), net of tax	(707)				(707)
Dividends declared	(11,629)			(11,629)
Dividends reinvested in common stock	544		544
Dividends reinvested in common stock (in shares)		22
Stock based compensation	2,719		2,719
Common stock issued through exercise of incentive stock options	996		996
Common stock issued through exercise of incentive stock options (in shares)		87
Common stock issued for share awards (in shares)		212
Common stock issued	11		11
Common stock issued (in shares)		1
Shares retired for settlement of employee taxes upon issuance of vested equity awards	(1,885)		(1,885)
Common stock withheld for taxes (in shares)		(111)
Net excess tax benefit from stock options exercised	679		679
Balance at Dec. 31, 2015	289,938		32,776	256,747	415
Balance (in shares) at Dec. 31, 2015		48,475
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(895)			(895)
Other comprehensive income (loss), net of tax	6,373				6,373
Dividends declared	(12,228)			(12,228)
Dividends reinvested in common stock	524		524
Dividends reinvested in common stock (in shares)		19
Stock based compensation	3,506		3,506
Common stock issued through exercise of incentive stock options	3,359		3,359
Common stock issued through exercise of incentive stock options (in shares)		371
Common stock issued for share awards (in shares)		190
Common stock issued	14		14
Common stock issued (in shares)		2
Shares retired for settlement of employee taxes upon issuance of vested equity awards	(5,097)		(5,097)
Common stock withheld for taxes (in shares)		(198)
Common stock issued to acquire non-controlling interests of nTelos	10,400		10,400
Common stock issued to acquire a non-controlling interests of nTelos (in shares)		76
Balance at Dec. 31, 2016	$ 295,894		45,482	243,624	6,788
Balance (in shares) at Dec. 31, 2016	48,935	48,935
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 66,390			66,390
Other comprehensive income (loss), net of tax	1,442				1,442
Dividends declared	(12,809)			(12,809)
Dividends reinvested in common stock	552		552	0
Dividends reinvested in common stock (in shares)		15
Stock based compensation	4,184		4,184
Common stock issued through exercise of incentive stock options	2,394		2,394
Common stock issued through exercise of incentive stock options (in shares)		363
Common stock issued for share awards (in shares)		(216)
Common stock issued	21		21
Common stock issued (in shares)		1
Shares retired for settlement of employee taxes upon issuance of vested equity awards	(7,846)		(7,846)
Common stock issued to acquire non-controlling interests of nTelos	0		0
Common stock issued to acquire a non-controlling interests of nTelos (in shares)		76
Balance at Dec. 31, 2017	$ 350,222		$ 44,787	$ 297,205	$ 8,230
Balance (in shares) at Dec. 31, 2017	49,328	49,328

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Stockholders' Equity [Abstract]
Dividends declared per share (in dollars per share)	$ 0.26	$ 0.25	$ 0.24

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash Flows from Operating Activities
Net income (loss)	$ 66,390	$ (895)	$ 40,864
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	151,063	123,995	69,287
Amortization reflected as operating expense	25,944	19,690	1,415
Amortization reflected as rent expense	1,528	728	0
Bad debt expense	2,179	2,456	1,640
Waived management fee	36,056	24,596	0
Stock based compensation expense, net of amount capitalized	3,580	3,021	2,333
Deferred income taxes	(54,055)	(52,875)	(451)
Net (gain) loss on disposal of equipment	118	(23)	235
(Gain) loss on investments	(450)	(143)	141
Net (gain) loss from patronage and equity investments	(3,008)	(795)	(805)
Amortization of long term debt issuance costs	4,741	3,914	567
Net benefit from retirement plans	(1,388)	(4,396)	0
Other	298	1,437	(566)
(Increase) decrease in:
Accounts receivable	16,451	14,581	(1,047)
Inventory, net	33,339	(30,288)	492
Income taxes receivable	(19,138)	7,694	7,058
Other assets	1,439	5,273	(6,368)
Increase (decrease) in:
Accounts payable	(36,725)	42,496	2,753
Income taxes payable	0	435	0
Deferred lease	327	4,273	962
Other deferrals and accruals	(5,759)	(3,648)	811
Net cash provided by (used in) operating activities	222,930	161,526	119,321
Cash Flows From Investing Activities
Acquisition of property, plant and equipment	(146,489)	(173,231)	(69,679)
Proceeds from sale of assets	980	5,510	363
Cash disbursed for acquisition, net of cash acquired	(6,000)	(657,354)	0
Release of restricted cash	0	2,167	0
Cash distributions from investments, net of contributions	14	2,895	54
Net cash provided by (used in) investing activities	(151,495)	(820,013)	(69,262)
Cash Flows From Financing Activities
Principal payments on long-term debt	(36,375)	(213,793)	(23,000)
Proceeds from credit facility borrowings	25,000	860,000	0
Payments for debt issuance costs	0	(14,910)	(7,880)
Dividends paid, net of dividends reinvested	(12,257)	(11,705)	(11,085)
Excess tax benefits from stock compensation	0	0	679
Taxes paid for equity award issuances	(5,411)	(5,097)	(1,885)
Proceeds from issuances of common stock	0	3,373	1,007
Net cash provided by (used in) financing activities	(29,043)	617,868	(42,164)
Net increase (decrease) in cash and cash equivalents	42,392	(40,619)	7,895
Cash and cash equivalents:
Beginning	36,193	76,812	68,917
Ending	78,585	36,193	76,812
Supplemental Cash Flow Information
Cash paid for interest, net of capitalized interest of $1,559 in 2017, $1,374 in 2016, and $436 in 2015	33,495	21,187	6,784
Income taxes paid, net	20,066	44,983	21,119
Accounts payable for purchases and investment in property, plant and equipment	7,254	$ 14,386	$ 5,597
Increase in deferred tax liabilities	$ 500

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Supplemental Disclosures of Cash Flow Information Cash payments for:
Capitalized interest	$ 1,559	$ 1,374	$ 436
Other cash flow information:
Common stock issued to acquire non-controlling interests of nTelos	0	10,400
Unamortized loan allocation to long term debt, current maturities		5,200
Increase in fair value of interest rate swaps	2,000
Increase in deferred tax liabilities	500
Increase in accumulated other comprehensive income	$ 1,442	$ 6,373	$ (707)

Nature of Operations	12 Months Ended
Nature of Operations	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Nature of Operations Description of business: Shenandoah Telecommunications Company and its subsidiaries (collectively, the “Company”) provide wireless personal communications service (“PCS”) under the Sprint brand, and telephone service, cable television, unregulated communications equipment sales and services, and internet access under the Shentel brand. In addition, the Company leases towers and operates and maintains an interstate fiber optic network. Pursuant to a management agreement with Sprint and its related parties (collectively, “Sprint”), the Company has been the exclusive Sprint PCS Affiliate providing wireless mobility communications network products and services on the 800 MHz, 1900 MHz and 2.5 GHz spectrum ranges in a multi-state area covering large portions of central and western Virginia, south-central Pennsylvania, West Virginia, and portions of Maryland, North Carolina, Kentucky, Tennessee and Ohio. The Company is licensed to use the Sprint brand name in this territory, and operates its network under the Sprint radio spectrum license. The Company also owns cell site towers built on leased land, throughout this region, and leases space on the owned towers to both affiliates and non-affiliated third-party wireless service providers. With the 2016 acquisition of nTelos and the subsequent Sprint expansions (see Note 3, Business Combinations and Acquisitions), the Company's wireless network coverage area expanded to include south-central and western Virginia, West Virginia, and small portions of Kentucky, Tennessee and Ohio. The Company's other operations are located in the four-state region surrounding the Northern Shenandoah Valley of Virginia.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Principles of consolidation: The accompanying consolidated financial statements include the accounts of Shenandoah Telecommunications Company and all of its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Use of estimates: The Company has made a number of estimates and assumptions related to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by the Company include, but are not limited to: revenue recognition; estimates of the fair value of stock-based awards; fair value of intangibles and goodwill; depreciable lives of property, equipment; and useful lives of intangible assets. Management reviews its estimates, including those related to recoverability and useful lives of assets as well as liabilities for income taxes and pension benefits. Changes in facts and circumstances may result in revised estimates, and actual results could differ from those reported estimates and such differences could be material to the Company's consolidated financial position and results of operations.

Cash and cash equivalents: The Company considers all temporary cash investments purchased with a maturity of three months or less to be cash equivalents. The Company places its temporary cash investments with high credit quality financial institutions. Generally, such investments are in excess of FDIC or SIPC insurance limits.

Inventories: The Company's inventories consist primarily of items held for resale such as devices and accessories. The Company values its inventory at the lower of cost or net realized value. Inventory cost is computed on an average cost basis. Net realized value is determined by reviewing current replacement cost, marketability and obsolescence.

Property, plant and equipment: Property, plant and equipment are stated at cost less accumulated depreciation and amortization. The Company capitalizes all costs associated with the purchase, deployment and installation of property, plant and equipment, including interest costs on major capital projects during the period of their construction. Maintenance expense is recognized as incurred when repairs are performed that do not extend the life of property, plant and equipment. Expenses for major renewals and improvements, which significantly extend the useful lives of existing property and equipment, are capitalized and depreciated. Depreciable lives are assigned to assets based on their estimated useful lives. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the lesser of their useful lives or respective lease terms. The Company takes technology changes into consideration as it assigns the estimated useful lives, and monitors the remaining useful lives of asset groups to reasonably match the remaining economic life with the useful life and makes adjustments when necessary. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized. See Note 8, Property, Plant and Equipment, for additional information.

Goodwill and Indefinite-lived Intangible Assets: Goodwill represents the excess of acquisition costs over the fair value of tangible net assets and identifiable intangible assets of the businesses acquired. Cable franchise rights, included in indefinite-lived intangible assets provide us with the non-exclusive right to provide video services in a specified area. While some cable franchises are issued for a fixed time (generally 10 years), renewals of cable franchises have occurred routinely and at nominal cost. Moreover, we have determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of our cable franchises and as a result we account for cable franchise rights as an indefinite lived intangible asset.

Goodwill and indefinite-lived intangible assets are not amortized, but rather, are is subject to impairment testing annually, in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. A qualitative evaluation of our reporting units is utilized to determine whether it is necessary to perform a quantitative two-step impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would be required to perform a two-step quantitative test. If the carrying value of the reporting unit's net assets exceeds the fair value of the reporting unit, then an impairment loss is recorded.

The Company's 2017 impairment tests were based on the operating segment structure, where each operating segment was also considered a reporting unit. During the fourth quarter of 2017 we performed a qualitative assessment for our reporting units that were assigned goodwill. During this assessment, qualitative factors were first assessed to determine whether it was more likely than not that the fair value of the reporting units were less than their carrying amounts. Qualitative factors that were considered included, but were not limited to, macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances, after tax cash flows and market capitalization trends.

Based on our Company's annual impairment evaluations performed during 2017 and 2016, we concluded that there were no indicators of impairment and therefore it was more likely than not that the fair value of the goodwill exceeded its carrying amount, for each reporting unit.

Finite-lived Intangible Assets: Whenever events or changes in circumstances require, the Company reviews its finite-lived intangible assets for impairment. Intangible assets are included in the Company's impairment testing and in the event the Company identifies impairment, the intangible assets are written down to their fair values.

Intangible assets typically have finite useful lives that are amortized over their useful lives and primarily consist of affiliate contract expansion, acquired subscribers-cable, and off market leases. Affiliate contract expansion and acquired subscribers-cable intangibles are amortized over the period in which those relationships are expected to contribute to our future cash flows and are also reduced by management fee waiver credits received from Sprint in connection with the 2017 non-monetary exchange. Other finite-lived intangible assets, are generally amortized using the straight-line method of amortization. Such finite-lived intangible assets are subject to the impairment provisions of ASC 360, where impairment is recognized and measured only if there are events and circumstances that indicate that the carrying amount may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset group. An impairment loss is recorded if after determining that it is not recoverable, the carrying amount exceeds the fair value of the asset.

Finite-lived intangible assets and liabilities are being amortized over the following periods:



		Useful Life
Affiliate contract expansion		4 - 14 years
Favorable and unfavorable leases - wireless		1 - 28 years
Acquired subscribers - cable		3 - 10 years
Other intangibles		15 - 20 years

There were no impairment charges on intangible assets for the years ended December 31, 2017, or 2016.

Valuation of long-lived assets: Long‑lived assets, such as property, plant, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. If the Company determines that an asset group may not be recoverable, an impairment charge is recorded. There were no impairment charges on long-lived assets for the years ended December 31, 2017, 2016 or 2015.

Business combinations: Business combinations, including purchased intangible assets, are accounted for at fair value. Acquisition costs are expensed as incurred and recorded in general and administrative expenses. The fair value amount assigned to intangible assets is based on an exit price from a market participant's viewpoint, and utilizes data such as discounted cash flow analysis and replacement cost models. The Company's best estimates are employed in determining the assumptions used to derive acquisition date fair value.

Revenue recognition: The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been rendered or products have been delivered, the price to the buyer is fixed and determinable and collectability is reasonably assured. Revenues are recognized by the Company based on the various types of transactions generating the revenue. For services, revenue is recognized as the services are performed.

Under the Sprint Management Agreement, postpaid wireless service revenues are reported net of an 8% Management Fee and an 8.6% Net Service Fee, retained by Sprint. Prepaid wireless service revenues are reported net of a 6% Management Fee retained by Sprint.

Advertising Costs: The Company expenses advertising costs and marketing production costs as incurred and includes such costs within selling, general and administrative expenses in the consolidated statements of operations. Advertising expense for the years ended December 31, 2017, 2016 and 2015 was $15.5 million, $12.2 million and $7.3 million, respectively.

Income taxes: Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the recoverability of tax assets generated on a state-by-state basis from net operating losses apportioned to that state. The Company uses a more likely than not threshold to make that determination and has concluded that at December 31, 2017 and 2016, a valuation allowance against certain state deferred tax assets is necessary, as discussed in Note 15, Income Taxes. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company’s policy is to record interest related to unrecognized tax benefits in interest expense and penalties in selling, general, and administrative expenses.

Retirement Plans: Through the Company’s acquisition of nTelos, the Company assumed nTelos’ non-contributory defined benefit pension plan (“Pension Plan”) covering all employees who met eligibility requirements and were employed by nTelos prior to October 1, 2003 ("participants"). The Pension Plan was closed to nTelos employees hired on or after October 1, 2003. Pension benefits vested after five years of plan service and were based on years of service and an average of the five highest consecutive years of compensation subject to certain reductions if the employee retires before reaching age 65 and elects to receive the benefit prior to age 65. Effective December 31, 2012, nTelos amended the Pension Plan to freeze future benefit plan accruals for participants.

As of December 31, 2017 and 2016, the fair value of our pension plan assets and certain other postretirement benefits in aggregate was $22.6 million and $24.1 million, respectively, and the fair value of our projected benefit obligations in aggregate was $28.2 million and $34.4 million, respectively. As a result, the plans were underfunded by approximately $5.6 million and $10.3 million at December 31, 2017 and 2016, respectively, and were recorded as a net liability in our consolidated balance sheets.

The change in the net liability of the plan in 2017 was affected primarily by a lump-sum payout offer. During 2017, the Company amended the Pension Plan to include an opportunity for participants to elect to receive a lump-sum payout of vested pension benefits in lieu of receiving any future pension benefits, ("the lump-sum payout offer"). The lump-sum payout offer was concluded during 2017 and was accounted for as a settlement and the future pension obligation was remeasured in the fourth quarter of 2017 following the payout of all elected lump-sum payments. The Company recorded a net gain on the aforementioned settlement and re-measurement of approximately $1.1 million.

The Company intends to make future cash contributions to the pension plan in amounts necessary to meet minimum funding requirements according to applicable benefit plan regulations.

Stock Compensation: The Company maintains two shareholder-approved Company Stock Incentive Plans allowing for the grant of equity based incentive compensation to essentially all employees. The 2005 Plan authorized grants of up to 2,880,000 shares over a ten-year period beginning in 2005. The term of the 2005 Plan expired in February 2014; outstanding awards will continue to vest and options may continue to be exercised, but no additional awards will be granted under the 2005 Plan. The 2014 Plan authorizes grants of up to an additional 3,000,000 shares over a ten-year period beginning in 2014. Under these Plans, grants may take the form of stock awards, awards of options to acquire stock, stock appreciation rights, and other forms of equity based compensation; both options to acquire stock and stock awards were granted.

The fair value of each option award is estimated on the grant date using the Black-Scholes option valuation model, based on several assumptions including the risk-free interest rate, volatility, expected dividend yield and expected term.

The fair value of each restricted stock unit award is calculated using the share price at the date of grant. Restricted stock units generally have service requirements only or performance and service requirements with vesting periods ranging from one to four years. Employees and directors who are granted restricted stock units are not required to pay for the shares but generally must remain employed with the Company, or continue to serve as a member of the Company’s board of directors, until the restrictions lapse, which is typically four years for employees and one year for directors.

Compensation Costs

The cost of employee services received in exchange for share-based awards classified as equity is measured using the estimated fair value of the award on the date of the grant, and that cost is recognized over the period that the award recipient is required to provide service in exchange for the award. Share-based compensation cost related to awards with graded vesting is recognized using the straight-line method.

Pre-tax share and stock-based compensation charges from our incentive plans included in net income (loss) were as follows:



(in thousands)	2017		2016		2015
Stock compensation expense	$	4,184	$	3,506	$	2,719
Capitalized stock compensation	604		485		386
Stock compensation expense, net	3,580		3,021		2,333

Excess tax benefits, net of deficiencies	$	3,314	$	1,709	$	679

As of December 31, 2017, there was $2.5 million of total unrecognized compensation cost related to non-vested incentive awards that are expected to be recognized over a weighted average period of 2.5 years.

Adoption of New Accounting Principles

There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company's consolidated financial statements and note disclosures, that would be expected to impact the Company except for the following:

In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09 (Topic 606), “Revenue from Contracts with Customers” which among other things, requires companies to identify contractual performance obligations and recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods and services.

We adopted the new revenue guidance effective January 1, 2018, using the modified retrospective method by recognizing a cumulative adjustment to retained earnings. Based on the Company’s evaluation, which has not been finalized, we do not expect the adoption of this standard to have a material impact on our results of operations or cash flows in the periods after adoption.

A significant focus of the adoption of the new standard relates to our assessment of the Sprint affiliate agreement as a series of performance obligations to provide continuous network access and that Sprint, not the end subscriber, meets the definition of a customer under Topic 606. The revenues we earn under the affiliate agreement are variable based on Sprint’s underlying subscriber activity.

A summary of the most significant changes that will be implemented in 2018 in connection with the standard are presented below.

Changes to Presentation of Revenue and Expenses:

•

Certain amounts payable to Sprint for the reimbursement of costs incurred by Sprint in their national sales channel (commissions and fulfillment costs) and to provide on-going service to their prepaid customers in our territory were historically recorded as expense when incurred. Under Topic 606, these amounts represent consideration payable to our customer and will be recorded as a reduction of revenue as we do not separate goods or services that are distinct from the services we provide. In 2017 these amounts were approximately $63.5 million for the national sales channel cost and $16.9 million for the on-going service to Sprint's prepaid customers. As result of applying Topic 606, these amounts will be reclassified from operating expenses to a reduction of revenue.


•	Costs incurred by the Company for the sale of devices under Sprint’s device financing and lease programs were previously recorded against revenue. Under Topic 606, these device costs will be reclassified to cost of goods and services. These amount were approximately $63.8 million in 2017.

Changes to Timing of Recognition of Revenue and Related Costs:


•	Certain amounts payable to Sprint for the reimbursement of costs incurred by Sprint in their national sales channel will be deferred over the expected period of benefit versus expenses when incurred. We do not expect this change to have a material impact.


•	Installation revenues in the cable and wireline's segments will be recognized over a shorter period of benefit rather than over the estimated customer life. We do not expect this change to have a material impact on the timing of the recognition of revenue.


•	In our cable and wireline segments, commissions and other direct and incremental costs to fulfill a contract, which historically have been expensed when incurred, will be deferred and recognized over the expected period of benefit. We do not expect this change to have a material impact.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” In addition to the presentation and disclosure requirements for financial instruments, ASU 2016-01 requires entities to measure equity investments, other than those accounted for under the equity method, at fair value and recognize changes in fair value in net income. Entities will no longer be able to use the cost method of accounting for equity securities. However, for equity investments without readily determinable fair values that do not qualify for the practical expedient to estimate fair value using net asset value per share, entities may elect a measurement alternative that will allow those investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. Entities must record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the standard is adopted, except for equity investments without readily determinable fair values, for which the guidance will be applied prospectively. The guidance under ASU 2016-01 is effective for annual and interim periods beginning after December 15, 2017. The Company has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous generally accepted accounting principles. The ASU is effective on January 1, 2019, and early application is permitted. Modified retrospective application is required. The Company plans to adopt this standard when it becomes effective for the Company beginning January 1, 2019, and expects the adoption of this standard will result in the recognition of right of use assets and lease liabilities that have not previously been recorded, which will have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments". The ASU is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the Consolidated Statement of Cash Flows by providing guidance on eight specific cash flow issues. The Company intends to adopt the standard retrospectively on the effective date of January 1, 2018 and does not expect the adoption of the ASU to have a material effect.

In March 2017, the FASB issued ASU No. 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". The update requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost, including interest cost, expected return on plan assets, amortization of prior service cost/credit and actuarial gain/loss, and settlement and curtailment effects, are to be presented outside of any subtotal of operating income. Employers will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. The ASU is effective for fiscal years and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. The Company does not expect the adoption of the ASU to have a material impact on its consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". This update is intended to simplify hedge accounting by better aligning an entity’s financial reporting for hedging relationships with its risk management activities. The ASU also simplifies the application of the hedge accounting guidance. The ASU is effective on January 1, 2019, with early adoption permitted. For cash flow hedges existing at the adoption date, the standard requires adoption on a modified retrospective basis with a cumulative-effect adjustment to the Consolidated Balance Sheet as of the beginning of the year of adoption, to the extent any ineffectiveness was previously recognized. The amendments to presentation guidance and disclosure requirements under this update are required to be adopted prospectively. The Company has not yet determined the effect of the ASU on the Company's consolidated financial statements, nor has transition date been determined.

Business Combinations and Acquisitions

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Business Combinations and Acquisitions

Acquisition of NTELOS Holdings Corp. and Exchange with Sprint

On May 6, 2016, (the "acquisition date"), the Company completed its acquisition of NTELOS Holdings Corp. nTelos, was a regional provider of wireless telecommunications solutions and was acquired to expand the Company's wireless service area and subscriber base, thus strengthening the Company's relationship with Sprint.

Pursuant to the terms of the Agreement and Plan of Merger between the Company and nTelos (the "Merger Agreement"), nTelos became a direct wholly owned subsidiary of the Company. Pursuant to the terms of the Merger Agreement, the Company acquired all of the issued and outstanding capital stock of nTelos for an aggregate purchase price of $667.8 million. The purchase price was financed by a credit facility arranged by CoBank, ACB, Royal Bank of Canada, Fifth Third Bank, Bank of America, N.A., Capital One, National Association, Citizens Bank N.A., and Toronto Dominion (Texas) LLC.

Transaction costs in connection with the acquisition were expensed as incurred and are included in acquisition, integration and migration expenses in the consolidated statement of operations. The results of operations related to nTelos are included in our consolidated statements of operations beginning from the acquisition date.

The Company accounted for the acquisition of nTelos under the acquisition method of accounting, in accordance with FASB's ASC 805, “Business Combinations”, and has accounted for measurement period adjustments under ASU 2015-16, “Simplifying the Accounting for Measurement Period Adjustments”. Estimates of fair value included in the consolidated financial statements, in conformity with ASC 820, "Fair Value Measurements and Disclosures", represent the Company's best estimates and valuations. In accordance with ASC 805, "Business Combinations", the allocation of the consideration value was subject to adjustment until the Company completed its analysis, in a period of time, but not to exceed one year after the date of acquisition, or May 6, 2017, in order to provide the Company with the time to complete the valuation of its assets and liabilities. The Company has completed and finalized its analysis and allocation of the consideration value to assets acquired and liabilities assumed.

The following table summarizes the final purchase price allocation to assets acquired and liabilities assumed, including measurement period adjustments:



(in thousands)	Initial Estimate		Measurement Period Adjustments			Purchase Price Allocation
Accounts receivable	$	48,476	$	(1,242	)	$	47,234
Inventory	3,810		762			4,572
Restricted cash	2,167		—			2,167
Investments	1,501		—			1,501
Prepaid expenses and other assets	14,835		—			14,835
Building held for sale	4,950		—			4,950
Property, plant and equipment	223,900		3,347			227,247
Spectrum licenses	198,200		—			198,200
Acquired subscribers - wireless	198,200		7,746			205,946
Favorable lease intangible assets	11,000		6,029			17,029
Goodwill	151,627		(5,244		)	146,383
Other long term assets	10,288		555			10,843
Total assets acquired	$	868,954	$	11,953		$	880,907

Accounts payable	8,648		(105		)	8,543
Advanced billings and customer deposits	12,477		—			12,477
Accrued expenses	25,230		(2,089		)	23,141
Capital lease liability	418		—			418
Deferred tax liabilities	124,964		4,327			129,291
Retirement benefits	19,461		(263		)	19,198
Other long-term liabilities	14,056		6,029			20,085
Total liabilities assumed	$	205,254	$	7,899		$	213,153

Net assets acquired	$	663,700	$	4,054		$	667,754

Concurrently with acquiring nTelos, the Company completed its previously announced transaction with SprintCom, Inc., a subsidiary of Sprint. Pursuant to this transaction, among other things, the Company exchanged spectrum licenses, valued at

$198.2 million and wireless subscribers, valued at $205.9 million, acquired from nTelos with Sprint, and received an expansion of its affiliate service territory valued at approximately $405.0 million. These exchanges were accounted for in accordance with ASC 845, “Nonmonetary Transactions”. The expansion intangible was measured at fair valued using an income based model, the Excess Earnings Method, and considered cash flows to be generated from current and future Sprint subscribers. Further, as the value of assets provided to Sprint exceeded the value of assets received in the non-monetary exchange, the Company and Sprint agreed to waive management fees in an amount of approximately $255.6 million. The cash flow savings associated with the management fee waiver is incorporated in the fair value estimate.

Goodwill is the excess of the consideration transferred over the net assets recognized and represents the future economic benefits, primarily as a result of other assets acquired that could not be individually identified and separately recognized. The Company has recorded goodwill in its Wireless segment as a result of the nTelos acquisition. Goodwill is not amortized. The goodwill that arose from the acquisition of nTelos is not deductible for tax purposes.

Since the acquisition of nTelos occurred, the Company incurred a total of approximately $75.7 million of acquisition, integration and migration expenses associated with this transaction, excluding approximately $23.0 million of debt issuance costs. Such costs included support of back office staff and support functions required while the nTelos legacy customers were migrated to the Sprint billing platform; cost of the handsets that were provided to nTelos legacy customers as they migrated to the Sprint billing platform; severance costs for back office and other former nTelos employees who were not retained permanently; and transaction related fees. The Company incurred $17.5 million of these costs during the year ended December 31, 2017. These costs include $1.8 million reflected in cost of goods and services and $4.7 million reflected in selling, general and administrative costs in the year ended December 31, 2017.

The amounts of operating revenue and income or loss before income taxes related to the former nTelos entity are not readily determinable due to intercompany transactions, allocations and integration activities that have occurred in connection with the operations of the combined company.

The following table presents the unaudited pro forma information, based on estimates and assumptions that the Company believes to be reasonable, for the Company as if the acquisition of nTelos had occurred at the beginning of each period presented:



(in millions)	Year Ended December 31, 2016		Year Ended December 31, 2015
Operating revenues	$	646,769	$	678,475
Income (loss) before income taxes	$	2,989	$	54,716

The pro forma information provided in the table above is not necessarily indicative of the consolidated results of operations for future periods or the results that actually would have been realized had the acquisition been completed at the beginning of the periods presented.

The pro forma information provided in the table above is based upon estimated valuations of the assets acquired and liabilities assumed as well as estimates of depreciation and amortization charges thereon. Other estimated pro forma adjustments include the following:


•	changes in nTelos' reported revenues from cancelling nTelos' wholesale contract with Sprint;


•	the incorporation of the Sprint-homed customers formerly serviced under the wholesale agreement into the Company’s affiliate service territory under the Company’s affiliate agreement with Sprint;


•	the effect of other changes to revenues and expenses due to various provisions of the affiliate agreement and the elimination of non-recurring transaction related expenses incurred by the Company and nTelos;


•	the elimination of certain nTelos operating costs associated with billing and care that are covered under the fees charged by Sprint under the affiliate agreement;


•	historical depreciation expense was reduced for the fair value adjustment decreasing the basis of property, plant and equipment; this decrease was offset by a shorter estimated useful life to conform to the Company’s standard policy and the acceleration of depreciation on certain equipment; and


•	incremental amortization due to the affiliate contract expansion intangible asset.

The value of the affiliate agreement expansion discussed above is based on changes to the amended affiliate agreement that include:


•	an increase in the price to be paid by Sprint from 80% to 90% of the entire business value if the affiliate agreement is not renewed;


•	extension of the affiliate agreement with Sprint by five years to 2029;


•	expanded territory in the nTelos service area;


•	rights to serve all future Sprint customers in the affiliate service territory;


•	the Company's commitment to upgrade certain coverage and capacity in its newly acquired service area; and


•	a reduction of the management fee charged by Sprint under the amended affiliate agreement; not to exceed $4.2 million in an individual month until the total waived fee equals approximately $255.6 million.

Acquisition of "Parkersburg" Expansion Area

On April 6, 2017, the Company expanded its affiliate service territory, under its agreements with Sprint, to include certain areas in North Carolina, Kentucky, Maryland, Ohio and West Virginia, for total consideration of $6.0 million. The expanded territory includes the Parkersburg, WV, Huntington, WV, and Cumberland, MD, basic trading areas. Approximately 25,000 Sprint retail and former nTelos postpaid and prepaid subscribers in the new basic trading areas became Sprint-branded affiliate customers managed by the Company.

Customer Concentration

12 Months Ended

Dec. 31, 2017

Significant Contractual Relationship [Abstract]

Customer Concentration

Significant Contractual Relationship

In 1999, the Company executed a Management Agreement (the “Agreement”) with Sprint whereby the Company committed to construct and operate a PCS network using CDMA air interface technology. Under the Agreement, the Company was the exclusive PCS Affiliate of Sprint providing wireless mobility communications network products and services on the 1900 MHz band in its territory across a multi-state area covering large portions of central and western Virginia, south-central Pennsylvania, West Virginia, and portions of Maryland, North Carolina, Kentucky, Tennessee and Ohio. With the recent acquisition of nTelos, the Company’s wireless service area has expanded to include south-central and western Virginia, West Virginia, and small portions of Kentucky and Ohio. The Company is authorized to use the Sprint brand in its territory, and operate its network under Sprint’s radio spectrum licenses. As an exclusive PCS Affiliate of Sprint, the Company has the exclusive right to build, own and maintain its portion of Sprint’s nationwide PCS network, in the aforementioned areas, to Sprint’s specifications. The term of the Agreement was initially set for 20 years and was automatically renewable for three 10-year options, unless terminated by either party under provisions outlined in the Agreement. Upon non-renewal by either party, the Company has the obligation to sell the business at 90% of “Entire Business Value” (“EBV”) as defined in the Agreement. EBV is defined as i) the fair market value of a going concern paid by a willing buyer to a willing seller; ii) valued as if the business will continue to utilize existing brands and operate under existing agreements; and, iii) valued as if Manager (Shentel) owns the spectrum. Determination of EBV is made by an independent appraisal process.

The Agreement has been amended numerous times. During 2012, the Company amended its Agreement with Sprint in order to build a 4G LTE network in the Company’s service area. In addition to adding 4G services to the Company’s network, the Company received access to additional 1900 and 800 MHz spectrum, extended the initial term of the contract five years from 2019 to 2024 and set the maximum contract length at 45 years. The agreement also increased the cap on the Net Service Fee related to postpaid revenues.

During 2014, the Company amended its Agreement with Sprint in order to allow the Company’s PCS stores to begin participating in Sprint’s handset financing programs, whereby Sprint enters into a financing agreement with the subscriber and the subscriber receives a handset from Sprint.

During 2015, effective January 1, 2016, the Company amended its Agreement with Sprint in order to better allocate certain costs covered by the Net Service Fee and extended the initial term to 2029. The Net Service Fee was reduced to 8.6%, and certain costs and revenues previously included within the Net Service Fee were broken out of the Net Service Fee and are separately settled. Separately settled revenues primarily consist of revenues associated with Sprint’s wholesale subscribers using the Company’s network and net travel revenue. In addition, the Company is charged for the costs of subsidized handsets sold through Sprint’s national channels as well as commissions paid by Sprint to third-party resellers in our service territory. Additionally, during 2015, the Company received access to certain 2.5GHz spectrum.

Effective with the acquisition of nTelos on May 6, 2016, the Company amended its Agreement with Sprint to expand the Company’s service area to include most of the nTelos territory. The Company agreed to complete nTelos’ network upgrade to 4G and expand coverage and capacity throughout the nTelos territory. Additionally, Sprint agreed to waive a portion of the Management Fee charged an amount of approximately $255.6 million.

Accounts Receivable

Accounts receivable are recorded at the invoiced amount and generally do not bear interest. Accounts receivable are concentrated among customers within the Company's geographic service area and large telecommunications companies.

The Company has one major customer relationship with Sprint that is a significant source of revenue.

Accounts receivable from significant clients, those representing 10% or more of total accounts receivable for the dates noted, is summarized below:



	December 31,
	2017	2016
Sprint	$43,405	$57,100
% of total accounts receivable	80%	82%

Correspondingly, revenue from significant clients, those representing 10% or more of total revenue for the respective periods, is summarized as follows:

Earnings (Loss) Per Share ("EPS")

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Earnings (Loss) Per Share (EPS)

Earnings (Loss) Per Share ("EPS")

Basic EPS was computed by dividing net income or loss by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share was computed under the treasury stock method, assuming the conversion as of the beginning of the period, for all dilutive stock options. Diluted EPS was computed by dividing net income by the sum of the weighted average number of shares of common stock outstanding and potentially dilutive securities outstanding during the period under the treasury stock method. Potentially dilutive securities include stock options and restricted stock units and shares that the Company is contractually obligated to issue in the future.

The following table indicates the computation of basic and diluted earnings per share for the years ended December 31, 2017, 2016 and 2015:



	Years Ended December 31,
(in thousands, except per share amounts)	2017		2016			2015
Calculation of net income (loss) per share:
Net income (loss)	$	66,390	$	(895	)	$	40,864
Weighted average shares outstanding	49,150		48,807			48,388
Basic income (loss) per share	$	1.35	$	(0.02	)	$	0.84

Effect of stock options outstanding:
Basic weighted average shares outstanding	49,150		48,807			48,388
Effect from dilutive shares and options outstanding	876		—			636
Diluted weighted average shares outstanding	50,026		48,807			49,024
Diluted income (loss) per share	$	1.33	$	(0.02	)	$	0.83

Due to the net loss for the year ended December 31, 2016, no adjustment was made to basic shares, for potentially dilutive securities, as such an adjustment would have been anti-dilutive.

The computation of diluted EPS does not include certain unvested awards, on a weighted average basis, because their inclusion would have an anti-dilutive effect on EPS. The awards excluded because of their anti-dilutive effect are as follows:



	Years Ended December 31,
(in thousands)	2017	2016	2015
Awards excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive	21	800	92

Investments

12 Months Ended

Dec. 31, 2017

Investments [Abstract]

Investments

At December 31, 2017 and 2016, other investments, comprised of equity securities which do not have readily determinable fair values, consist of the following:



	December 31,		December 31,
(in thousands)	2017		2016
Cost method:
CoBank	$	6,818	$	6,177
Other – Equity in other telecommunications partners	811		742
	7,629		6,919
Equity method:
Other	564		450
	564		450
Total other investments	$	8,193	$	7,369

The classifications of debt and equity securities are determined by management at the date individual investments are acquired. The appropriateness of such classification is periodically reassessed. The Company monitors the fair value of all investments, and based on factors such as market conditions, financial information and industry conditions, the Company reflects impairments in values when warranted. The classification of those securities and the related accounting policies are as follows:

Investments Carried at Fair Value: Investments in equity and bond mutual funds and investment trusts held within the Company’s rabbi trust, which is related to the Company’s unfunded Supplemental Executive Retirement Plan, ("SERP"), are reported at fair value using net asset value per share. The Company has elected to recognize unrealized gains and losses on investments carried at fair value in earnings, pursuant to the fair value option in ASC 820, "Fair Value Measurement".

Investments Carried at Cost: Investments in common stock in which the Company does not have a significant ownership (less than 20%) and for which there is no ready market, are carried at cost. This category includes required investments to obtain services, primarily with CoBank. Information regarding investments carried at cost is reviewed for evidence of impairment. Impairments, if any, are charged to earnings and a new cost basis for the investment is established. The Company’s investment in CoBank increased $689 thousand and $540 thousand in the years ended December 31, 2017 and 2016, respectively, due to the ongoing equity-based patronage earned from the outstanding investment and loan balances the Company has with CoBank.

Equity Method Investments: Investments in the equity of partnerships and in unconsolidated corporations where the Company's ownership is 20% or more, but less than 50%, or where the Company otherwise has the ability to exercise significant influence, are reported under the equity method. Under this method, the Company's equity in earnings or losses of investees is reflected in earnings. Distributions received reduce the carrying value of these investments. The Company recognizes a loss when there is a decline in value of the investment which is other than a temporary decline.

The Company's investments carried at fair value consisted of:



	December 31,		December 31,
(in thousands)	2017		2016
Taxable bond funds	$	—	$	24
Domestic equity funds	2,856		2,787
International equity funds	423		96
	$	3,279	$	2,907

Investments carried at fair value were acquired under a rabbi trust arrangement related to the Company’s SERP. The Company purchases investments in the trust to mirror the investment elections of participants in the SERP. The Company recorded gains of $450 thousand and $143 thousand in 2017 and 2016, respectively, and losses of $141 thousand in 2015. Fair values for these investments are determined by quoted market prices (“Level 2 fair values”) for the underlying mutual funds, which may be based upon net asset value. Gains and losses on the investments in the trust are reflected as increases or decreases in the liability owed to the participants. The increases or decreases to the liability are recorded as pension expense included within "Non-operating income (loss), net" in our consolidated statements of operations.

Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

The Company applies ASC 820-10, "Fair Value Measurements and Disclosures", which defines fair value, establishes a fair value hierarchy for assets and liabilities measured at fair value, and expands required disclosures about fair value measurements. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below.

The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value:

Level 1-Financial assets and liabilities whose values are based on unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.

Level 2-Financial assets and liabilities whose values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3-Financial assets and liabilities whose values are based on unobservable inputs for the asset or liability.

Financial instruments are defined as cash, or other financial instruments to a third party. The carrying amounts of cash and cash equivalents, accounts receivable, other current assets, investments carried at fair value, accounts payable and accrued liabilities approximate fair value due to their short-term nature. The Company's Credit Facilities (as defined in Note 13, Long-Term Debt, below) and interest rate swaps approximate fair value because of their floating rate structure.

Derivative financial instruments are recognized as assets or liabilities in the financial statements and measured at fair value on a recurring basis. See Note 10, Derivatives and Hedging, for additional information. The Company measures its interest rate swaps at fair value and recognizes such derivative instruments as either assets or liabilities on the Company’s consolidated balance sheet. Changes in the fair value of swaps are recognized in other comprehensive income, as the Company has designated these swaps as cash flow hedges for accounting purposes. The Company entered into these swaps to manage a portion of its exposure to interest rate movements by converting a portion of its variable rate long-term debt to fixed rate debt.

The following tables present the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2017 and 2016:



(in thousands)	For the year ended December 31, 2017
Balance sheet location:	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Money market funds	$	150	$	—	$	—	$	150
Prepaid expenses & other:
Interest rate swaps	—		2,411		—		2,411
Deferred charges & other assets, net:
Interest rate swaps	—		10,776		—		10,776
Total	$	150	$	13,187	$	—	$	13,337



(in thousands)	For the year ended December 31, 2016
Balance sheet location:	Level 1		Level 2			Level 3		Total
Prepaid expenses & other:
Interest rate swaps	—		12,118			—		12,118
Accrued liabilities and other:
Interest rate swaps	—		(895		)	—		(895		)
Total	$	—	$	11,223		$	—	$	11,223

The Company determines the fair value of its security holdings based on pricing from its vendors. The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs).

The Company has certain non-marketable long-term investments for which it is not practicable to estimate fair value with a total carrying value of $8.2 million and $7.4 million as of December 31, 2017 and 2016, respectively, of which $6.8 million and $6.2 million, respectively, represents the Company’s investment in CoBank. This investment is primarily related to patronage distributions of restricted equity and is a required investment related to the portion of the Credit Facility held by CoBank. This investment is carried under the cost method.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment consisted of the following at December 31, 2017 and 2016:



	Estimated	December 31,		December 31,
	Useful Lives	2017		2016
		(in thousands)
Land		$	6,418	$	13,057
Buildings and structures	10 – 40 years	195,540		115,960
Cable and wire	4 – 40 years	286,999		235,471
Equipment and software	2 – 17 years	730,228		720,830
Plant in service		1,219,185		1,085,318
Plant under construction		62,202		73,759
Total property, plant and equipment		1,281,387		1,159,077
Less accumulated amortization and depreciation		595,060		460,955
Property, plant and equipment, net		$	686,327	$	698,122

Depreciation expense for the years ended December 31, 2017, 2016, and 2015, was $151.1 million, $124.0 million, and $69.3 million, respectively. The Company leases fiber under indefeasible right of use agreements, (IRUs). The value of the Company's IRUs, which are classified as capital lease agreements that were included in property, plant and equipment, net as of December 31, 2017 was $5.9 million.

At December 31, 2017 and 2016, the Company had unamortized capitalized software costs for software in service of $28.0 million and $15.7 million, respectively.

At December 31, 2017 and 2016, plant under construction consisted primarily of equipment and software, which was not placed into service.

Derivative and Hedging

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative and Hedging

Derivatives and Hedging

The Company uses derivative financial instruments to manage its exposure to interest rate risk for its long-term variable-rate debt. The Company does not use derivative financial instruments for trading or speculative purposes. Credit risk related to derivative financial instruments is considered minimal and is managed through the use of four counterparties with high credit standards and periodic settlements of positions.

The Company's derivatives are instrument interest rate swaps, designated as cash flow hedges, that involve the receipt of variable-rate amounts from a counter parties in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The Company entered into a pay-fixed, receive-variable interest rate swap of $174.6 million of notional principal in September 2012. This interest rate swap was designated as a cash flow hedge. The outstanding notional amount of this cash flow hedge was $117.9 million and $135.3 million as of December 31, 2017 and 2016, respectively. The outstanding notional amount decreases based upon scheduled principal payments on the 2012 debt.

In May 2016, the Company entered into a pay-fixed, receive-variable interest rate swap of $256.6 million of notional principal with three counterparties. This interest rate swap was designated as a cash flow hedge. The outstanding notional amount of this cash flow hedge was $300.4 million and $301.1 million as of December 31, 2017 and 2016, respectively. The outstanding notional amount increases based upon draws made under a portion of the Company's Term Loan A-2 debt and as the 2012 interest rate swap's notional principal decreases, and the outstanding notional will decrease as the Company makes scheduled principal payments on the 2016 debt. In combination with the swap entered into in 2012 described above, the Company is hedging approximately 50% of the outstanding debt.

The effective portion of changes in the fair value of interest rate swaps designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company uses its derivatives to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivative is recognized directly in earnings through interest expense. No hedge ineffectiveness was recognized during any of the periods presented.

Amounts reported in accumulated other comprehensive income related to the interest rate swap designated and that qualify as a cash flow hedge are reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. As of December 31, 2017, the Company estimates that $2.4 million will be reclassified as a reduction of interest expense during the next twelve months.

The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheet:



(in thousands)	December 31, 2017		December 31, 2016
Balance Sheet Location of Derivative Financial Instruments:
Prepaid expenses and other	$	2,411	$	—
Deferred charges and other assets, net	10,776		12,118
Accrued liabilities and other	—		(895		)
Total derivatives designated as hedging instruments	$	13,187	$	11,223

The table below summarizes changes in accumulated other comprehensive income by component for the twelve months ended December 31, 2017:



(in thousands)	Gains (Losses) on Cash Flow Hedges			Income Tax (Expense) Benefit			Accumulated Other Comprehensive Income (Loss), net of taxes
Balance as of December 31, 2016	$	11,223		$	(4,435	)	$	6,788
Net change in unrealized gain (loss)	2,390			(636		)	1,754
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense	(426		)	114			(312		)
Net current period other comprehensive income (loss)	1,964			(522		)	1,442
Balance as of December 31, 2017	$	13,187		$	(4,957	)	$	8,230

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Changes in the carrying amount of goodwill during the year ended December 31, 2017 are shown below:



(in thousands)	December 31, 2016		Measurement Period Adjustments		December 31, 2017
Goodwill - Wireline segment	$	10	$	—	$	10
Goodwill - Cable segment	104		—		104
Goodwill - Wireless segment	145,142		1,241		146,383
Goodwill	$	145,256	$	1,241	$	146,497

Intangible assets consist of the following at December 31, 2017 and 2016:



	2017							2016
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Non-amortizing intangibles:
Cable franchise rights	$	64,334	$	—		$	64,334	$	64,334	$	—		$	64,334
Railroad crossing rights	141		—			141		97		—			97
	64,475		—			64,475		64,431		—			64,431

Finite-lived intangibles:
Affiliate contract expansion - wireless	410,157		(105,964		)	304,193		404,957		(32,768		)	372,189
Favorable leases - wireless	13,103		(1,222		)	11,881		16,950		(1,130		)	15,820
Acquired subscribers – cable	25,265		(25,100		)	165		25,265		(24,631		)	634
Other intangibles	463		(198		)	265		2,212		(754		)	1,458
Total finite-lived intangibles	448,988		(132,484		)	316,504		449,384		(59,283		)	390,101
Total intangible assets	$	513,463	$	(132,484	)	$	380,979	$	513,815	$	(59,283	)	$	454,532

For the years ended December 31, 2017, 2016 and 2015, amortization expense, related to intangible assets was approximately $27.4 million, $34.9 million and $1.4 million, respectively. Affiliate contract expansion is amortized over the expected benefit period and is further reduced by the amount of waived management fees received from Sprint which totaled $60.7 million since May 6, 2016, the date of the non-monetary exchange. Unfavorable leases in the wireless segment total $3.2 million and are included in deferred lease and amortized to rent expense.

During 2017, the Company determined that benefits received from acquired subscribers, which were previously reported as an intangible asset with a net carrying value of $102 million as of December 31, 2016, were not separable from the benefits to be received under the affiliate expansion agreement. Accordingly the Company combined the intangible asset previously reported as acquired subscribers with the affiliate contract expansion intangible during 2017 and has amended the comparable amounts presented as of December 31, 2016.

Aggregate amortization expense, including amortization classified as a rent expense, for intangible assets for the periods shown is expected to be as follows:



Year Ending December 31,	Total		Amount Reflected as Rent Expense		Amount Reflected as Amortization Expense
	(in thousands)
2018	$	21,700	$	916	$	20,784
2019	17,106		843		16,263
2020	14,193		800		13,393
2021	11,483		800		10,683
2022	10,040		800		9,240
thereafter	47,034		7,722		39,312
Total	$	121,556	$	11,881	$	109,675

Affiliate contract expansion will be further reduced by approximately $194.9 million for waived management fees as such are received from Sprint. Amortization of the unfavorable lease liability in the Wireless segment, to be classified as rent expense, is expected to be $3.2 million.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Accrued Liabilities

12 Months Ended

Dec. 31, 2017

Other Liabilities Disclosure [Abstract]

Accrued Liabilities

Accrued liabilities and other, classified as current liabilities, include the following:



(in thousands)	December 31, 2017		December 31, 2016
Sales and property taxes payable	$	3,872	$	6,628
Severance accrual	1,028		4,267
Asset retirement obligations	492		5,841
Accrued programming costs	2,805		2,939
Other current liabilities	5,717		9,410
Accrued liabilities and other	$	13,914	$	29,085

Other liabilities, classified as long-term liabilities, include the following:



(in thousands)	December 31, 2017		December 31, 2016
Non-current portion of deferred revenues	$	14,030	$	8,933
Straight-line management fee waiver	—		11,974
Other	1,263		2,836
Other liabilities	$	15,293	$	23,743

The Company's asset retirement obligations are included in the balance sheet caption "Asset retirement obligations" and "Accrued liabilities and other". The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement and removal of leasehold improvements or equipment. The Company also records a corresponding asset, which is depreciated over the life of the leasehold improvement or equipment. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time and changes in the estimated future cash flows underlying the obligation. The terms associated with its operating leases, and applicable zoning ordinances of certain jurisdictions, define the Company’s obligations which are estimated and vary based on the size of the towers.

Changes in the liability for asset retirement obligations for the years ended December 31, 2017, 2016 and 2015 are summarized below:



	Years Ended December 31,
	2017			2016			2015
(in thousands)
Balance at beginning of year	$	21,507		$	7,266		$	6,928
Liabilities acquired in acquisition	—			14,056			—
Additional liabilities accrued	2,404			157			490
Changes to prior estimates	(1,695		)	—			(467		)
Payments made	(1,296		)	(609		)	(77		)
Accretion expense	783			637			392
Balance at end of year	$	21,703		$	21,507		$	7,266

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Commitments and Contingencies

The Company leases land, buildings and tower space under various non-cancelable agreements, which expire between the years 2018 and 2043 and require various minimum annual rental payments. These leases typically include renewal options and escalation clauses. In general, tower leases have five or ten year initial terms with four renewal terms of five years each. The other leases generally contain certain renewal options for periods ranging from five to twenty years.

Future minimum lease payments under non-cancelable operating leases, including renewals that are reasonably assured at the inception of the lease, with initial variable lease terms in excess of one year as of December 31, 2017, are as follows:



Year Ending	Amount
	(in thousands)
2018	$	52,527
2019	52,224
2020	52,186
2021	52,310
2022	52,576
2023 and after	221,445
	$	483,268

The Company’s total rent expense under operating leases was $53.1 million, $43.8 million, and $16.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. Certain operating leases contain rent escalation clauses, which are recorded on a straight-line basis over the lease term which includes renewals that are reasonably assured at lease inception, with the difference between the rent paid and the straight-line rent recorded as a deferred rent liability. Lease incentives received from landlords are recorded as deferred rent liabilities and are amortized on a straight-line basis over the lease term as a reduction to rent expense.

As lessor, the Company has leased buildings, tower space and telecommunications equipment to other entities under various non-cancelable agreements, which require various minimum annual payments.

The total minimum rental receipts under lease agreements at December 31, 2017 are as follows:



Year Ending	Amount
	(in thousands)
2018	$	6,245
2019	5,858
2020	5,317
2021	3,329
2022	2,167
2023	1,556
	$	24,472

The Company’s total rental income was $7.2 million, $7.2 million, and $6.3 million for the years ended December 31, 2017, 2016 and 2015, respectively. Total rental income includes month-to-month leases which are excluded from the table above.

Legal Proceedings

From time to time the Company is involved in various litigation matters arising out of the normal course of business. The Company consults with legal counsel on those issues related to litigation and seeks input from other experts and advisers with respect to such matters. Estimating the probable losses or a range of probable losses resulting from litigation, government actions and other legal proceedings is inherently difficult and requires an extensive degree of judgment, particularly where the matters involve indeterminate claims for monetary damages, may involve discretionary amounts, present novel legal theories, are in the early stages of the proceedings, or are subject to appeal. Whether any losses, damages or remedies ultimately resulting from such matters could reasonably have a material effect on the Company's business, financial condition, results of operations, or cash flows will depend on a number of variables, including, for example, the timing and amount of such losses or damages (if any) and the structure and type of any such remedies. The Company's management does not presently expect any litigation matters to have a material adverse impact on the consolidated financial statements of the Company. Legal fees are expensed as incurred.

Long-Term Debt

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Long-Term Debt

Total debt consists of the following:



	December 31,		December 31,
(in thousands)	2017		2016
Term loan A-1	436,500		472,875
Term loan A-2	400,000		375,000
	836,500		847,875
Less: unamortized loan fees	14,542		18,610
Total debt, net of unamortized loan fees	$	821,958	$	829,265

Current maturities of long term debt, net of unamortized loan fees	$	64,397	$	32,041
Long-term debt, less current maturities, net of unamortized loan fees	$	757,561	$	797,224

On December 18, 2015, the Company entered into a Credit Agreement (as amended, the “2016 credit agreement”) with various banks and other financial institutions party thereto and CoBank, ACB, as administrative agent for the lenders, providing for three facilities: (i) a five-year revolving credit facility of up to $75 million; (ii) a five-year term loan facility of up to $485 million (Term Loan A-1”); and (iii) a seven-year term loan facility of up to $400 million (“Term Loan A-2”), (collectively our "Credit Facility" or "Credit Facilities").

In connection with the closing of the nTelos acquisition, the Company borrowed (i) $485 million under Term Loan A-1 and (ii) $325 million under Term Loan A-2, which amounts were used to, among other things, fund the payment of the nTelos merger consideration, to refinance, in full, all indebtedness under the Company’s existing credit agreement, to repay existing long-term indebtedness of nTelos and to pay fees and expenses in connection with the foregoing. In connection with the consummation of the nTelos acquisition, nTelos and its subsidiaries became guarantors under the 2016 credit agreement and pledged their assets as security for the obligations under the 2016 credit agreement. The 2016 credit agreement also included $75 million available under the Term Loan A-2 as a delayed draw term loan, and as of December 2016, the Company drew $50 million under this portion of the agreement and in January 2017 the Company drew the remaining $25 million. Additionally, the 2016 credit agreement includes a $75 million Revolver Facility and permits the Company to enter into one or more Incremental Term Loan Facilities not to exceed $150 million in the aggregate. At December 31, 2017, no draw had been made under the Revolver Facility and the Company had not entered into any Incremental Loan Facility. The debt issuance costs associated with the Revolver Facility are included in deferred charges and other assets on the balance sheet, and are amortized on a straight-line basis over the life of the Revolver Facility.

As of December 31, 2017, the Company’s indebtedness totaled approximately $822.0 million, net of unamortized loan fees of $14.5 million, with an annualized overall weighted average interest rate of approximately 4.23%. As of December 31, 2017, the Term Loan A-1 bears interest at one-month LIBOR plus a margin of 2.75%, while the Term Loan A-2 bears interest at one-month LIBOR plus a margin of 3.00%. LIBOR resets monthly. These loans are more fully described below. (See Note 18, Subsequent Events).

The Term Loan A-1 requires quarterly principal repayments of $6.1 million, which began on September 30, 2016 and continued through June 30, 2017, increasing to $12.1 million quarterly from September 30, 2017 through June 30, 2020; then increasing to $18.2 million quarterly from September 30, 2020 through March 31, 2021, with the remaining balance due June 30, 2021. The Term Loan A-2 requires quarterly principal repayments of $10.0 million beginning on September 30, 2018 through March 31, 2023, with the remaining balance due June 30, 2023.

The 2016 credit agreement also required the Company to enter into one or more hedge agreements to manage its exposure to interest rate movements. The Company elected to hedge the minimum required under the 2016 credit agreement, and entered into a pay-fixed, receive-variable swap on 50% of the aggregate expected principal balance of the term loans outstanding. The Company will receive one month LIBOR and pay a fixed rate of 1.16%, in addition to the 2.75% initial spread on Term Loan A-1 and the 3.00% initial spread on Term Loan A-2.

The 2016 credit agreement contains affirmative and negative covenants customary to secured credit facilities, including covenants restricting the ability of the Company and its subsidiaries, subject to negotiated exceptions, to incur additional indebtedness and additional liens on their assets, engage in mergers or acquisitions or dispose of assets, pay dividends or make other distributions, voluntarily prepay other indebtedness, enter into transactions with affiliated persons, make investments, and change the nature of the Company’s and its subsidiaries’ businesses.

Indebtedness outstanding under any of the facilities may be accelerated by an Event of Default, as defined in the 2016 credit agreement.

The Facilities are secured by a pledge by the Company of its stock and membership interests in its subsidiaries, a guarantee by the Company’s subsidiaries other than Shenandoah Telephone Company, and a security interest in substantially all of the assets of the Company and the guarantors.

The Company is subject to certain financial covenants to be measured on a trailing twelve month basis each calendar quarter unless otherwise specified. These covenants include:


•	a limitation on the Company’s total leverage ratio, defined as indebtedness divided by earnings before interest, taxes, depreciation and amortization, or EBITDA, of less than or equal to 3.75 to 1.00 from the closing date through December 30, 2018, then 3.25 to 1.00 through December 30, 2019, and 3.00 to 1.00 thereafter;


•	a minimum debt service coverage ratio, defined as EBITDA minus certain cash taxes divided by the sum of all scheduled principal payments on the Term Loans and other indebtedness plus cash interest expense, greater than 2.00 to 1.00;


•	the Company must maintain a minimum liquidity balance, defined as availability under the revolver facility plus unrestricted cash and cash equivalents on deposit in a deposit account for which a control agreement has been delivered to the administrative agent under the 2016 credit agreement, of greater than $25 million at all times.

These ratios are generally less restrictive than the covenant ratios the Company had been required to comply with under its previously existing debt arrangements.

As shown below, as of December 31, 2017, the Company was in compliance with the financial covenants in its credit agreements.



	Actual		Covenant Requirement
Total Leverage Ratio	2.93		3.75 or Lower
Debt Service Coverage Ratio	3.73		2.00 or Higher
Minimum Liquidity Balance (in millions)	$	151.9	$25 million or Higher

Future maturities of long-term debt principal are as follows:



Year Ending	Amount
	(in thousands)
2018	$	68,500
2019	88,500
2020	100,625
2021	318,875
2022	40,000
2023	220,000
Total	$	836,500

The Company has no fixed-rate debt instruments as of December 31, 2017. The estimated fair value of the variable-rate debt approximates its carrying value due to its floating interest rate structure. The fair value of the Company’s interest rate swap was an asset of $13.2 million and $11.2 million at December 31, 2017 and 2016, respectively. (See Note 10, Derivatives and Hedging).

The Company receives patronage credits from CoBank and certain of its affiliated Farm Credit institutions, which are not reflected in the stated rates shown above. Patronage credits are a distribution of profits of CoBank as approved by its Board of Directors. During the first quarter of the year, the Company receives patronage credits on its average outstanding CoBank debt balance during the prior fiscal year. The Company accrued $2.8 million in non-operating income in the year ended December 31, 2017, in anticipation of the early 2018 distribution of the credits by CoBank. Patronage credits have historically been paid in a mix of cash and shares of CoBank stock. The 2017 payout mix was 75% cash and 25% shares.

Related Party Transactions

12 Months Ended

Dec. 31, 2017

Related Party Transactions

ValleyNet, an equity method investee of the Company, resells capacity on the Company’s fiber network under an operating lease agreement. Additionally, the Company's PCS operating subsidiary leases capacity through ValleyNet.

The following tables summarize the historical transactions that occurred with ValleyNet:



(in thousands)	Years Ended December 31,
Consolidated Statement of Operations and Comprehensive Income	2017		2016		2015
Facility Lease Revenue	$	2,201	$	2,384	$	2,726
Costs of Goods and Services	3,673		3,067		2,391

Consolidated Balance Sheet	December 31, 2017		December 31, 2016
Accounts Receivable related to ValleyNet	$	180	$	191
Accounts Payable related to ValleyNet	303		448

Income Taxes	12 Months Ended
Income Taxes	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted, substantially changing the U.S. tax system. The 2017 Tax Act includes a number of changes to existing U.S. tax laws that impact the Company, most notably a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent for tax years beginning after December 31, 2017. The 2017 Tax Act also provides immediate expensing for certain qualified assets acquired and placed into service after September 27, 2017 as well as prospective changes beginning in 2018, including acceleration of tax revenue recognition, additional limitations on deductibility of executive compensation and limitations on the deductibility of interest. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Act. The Company recognized the income tax effects of the 2017 Tax Act in its 2017 financial statements in accordance with SAB No. 118.