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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Nov. 09, 2018
Document and Entity Information
Entity Registrant Name	ATN International, Inc.
Entity Central Index Key	0000879585
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		15,965,472
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 161,112	$ 207,956
Restricted cash	1,071	833
Short-term investments	314	7,076
Accounts receivable, net of allowances of $15.3 million and $15.0 million, respectively	44,094	43,529
Inventory, materials and supplies	7,990	15,398
Prepayments and other current assets	37,239	68,136
Assets held for sale	97,477
Total current assets	349,297	342,928
Fixed Assets:
Property, plant and equipment	1,157,566	1,169,806
Less accumulated depreciation	(543,139)	(526,660)
Net fixed assets	614,427	643,146
Telecommunication licenses, net	95,952	95,952
Goodwill	63,970	63,970
Customer relationships, net	9,863	11,734
Restricted cash	11,768	11,101
Other assets	38,773	36,774
Total assets	1,184,050	1,205,605
Current Liabilities:
Current portion of long-term debt	4,688	10,919
Accounts payable and accrued liabilities	96,387	116,133
Dividends payable	2,713	2,724
Accrued taxes	12,789	6,751
Advance payments and deposits	18,076	25,178
Liabilities held for sale	80,673
Total current liabilities	215,326	161,705
Deferred income taxes	7,614	31,732
Other liabilities	44,880	37,072
Long-term debt, excluding current portion	87,183	144,873
Total liabilities	355,003	375,382
Commitments and contingencies (Note 13)
ATN International, Inc. Stockholders’ Equity:
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized, none issued and outstanding
Common stock, $0.01 par value per share; 50,000,000 shares authorized; 17,130,894 and 17,102,530 shares issued, respectively, 15,958,952 and 16,025,745 shares outstanding respectively	170	170
Treasury stock, at cost; 1,171,942 and 1,076,785 shares, respectively	(40,285)	(36,110)
Additional paid-in capital	174,914	167,973
Retained earnings	565,180	552,948
Accumulated other comprehensive income	(2,324)	3,746
Total ATN International, Inc. stockholders’ equity	697,655	688,727
Non-controlling interests	131,392	141,496
Total equity	829,047	830,223
Total liabilities and equity	$ 1,184,050	$ 1,205,605

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowances (in dollars)	$ 15.3	$ 15.0
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	17,130,894	17,102,530
Common stock, shares outstanding	15,958,952	16,025,745
Treasury stock, shares	1,171,942	1,076,785

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
REVENUE:
Total Revenue	$ 121,138	$ 122,132	$ 343,401	$ 373,492
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated):
Termination and access fees	29,866	30,554	84,037	94,478
Engineering and operations	18,177	18,852	54,738	57,881
Sales, marketing and customer service	8,995	8,440	25,969	26,176
General and administrative	25,210	26,660	77,470	77,089
Transaction-related charges	178	61	642	887
Depreciation and amortization	21,384	21,157	64,602	65,904
(Gain) Loss on disposition of long-lived assets	(13,496)	(593)	(15,509)	513
Loss on damaged assets and other hurricane related charges, net of insurance recovery		36,566	666	36,566
Total operating expenses	90,314	141,697	292,615	359,494
Income (loss) from operations	30,824	(19,565)	50,786	13,998
OTHER INCOME (EXPENSE)
Interest income	568	453	1,420	1,087
Interest expense	(2,229)	(2,098)	(6,759)	(6,567)
Loss on deconsolidation of subsidiary				(529)
Other expenses	(1,244)	(650)	(3,042)	(1,631)
Other expense, net	(2,905)	(2,295)	(8,381)	(7,640)
INCOME (LOSS) BEFORE INCOME TAXES	27,919	(21,860)	42,405	6,358
Income tax provisions (benefit)	7,010	(884)	13,018	4,839
NET INCOME (LOSS)	20,909	(20,976)	29,387	1,519
Net income attributable to non-controlling interests, net of tax expense of $0.5 million, $0.3 million, $1.1 million, and $0.7 million, respectively.	(3,887)	(3,784)	(10,705)	(13,535)
NET INCOME (LOSS) ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS	$ 17,022	$ (24,760)	$ 18,682	$ (12,016)
NET INCOME (LOSS) PER WEIGHTED AVERAGE SHARE ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS:
Basic (in dollars per share)	$ 1.07	$ (1.53)	$ 1.17	$ (0.74)
Diluted (in dollars per share)	$ 1.06	$ (1.53)	$ 1.16	$ (0.74)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	15,958	16,178	15,987	16,177
Diluted (in shares)	16,021	16,178	16,042	16,177
DIVIDENDS PER SHARE APPLICABLE TO COMMON STOCK (in dollars per share)	$ 0.17	$ 0.17	$ 0.51	$ 0.85
Wireless
REVENUE:
Total Revenue	$ 52,003	$ 60,305	$ 153,046	$ 175,777
Wireline
REVENUE:
Total Revenue	63,717	56,817	173,083	182,777
Renewable Energy
REVENUE:
Total Revenue	$ 5,418	$ 5,010	$ 17,272	$ 14,938

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Noncontrolling interest income tax expense	$ 0.5	$ 0.3	$ 1.1	$ 0.7

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 20,909	$ (20,976)	$ 29,387	$ 1,519
Other comprehensive income:
Foreign currency translation adjustment	(2,510)	(1,311)	(6,093)	921
Reclassifications of gains on sale of marketable securities to net income				(1,044)
Unrealized gain (loss) on securities	45	67	226	(65)
Projected pension benefit obligation, net of tax of $0.0 million, $0.0 million, $0.0 million, and $0.4 million, respectively				513
Other comprehensive income (loss), net of tax	(2,465)	(1,244)	(5,867)	325
Comprehensive income (loss)	18,444	(22,220)	23,520	1,844
Less: Comprehensive income attributable to non-controlling interests	(3,887)	(3,784)	(10,705)	(13,535)
Comprehensive income (loss) attributable to ATN International, Inc.	$ 14,557	$ (26,004)	$ 12,815	$ (11,691)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Projected pension benefit obligation, tax expense (benefit)	$ 0.0	$ 0.0	$ 0.0	$ 0.4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 29,387	$ 1,519
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	64,602	65,904
Provision for doubtful accounts	4,199	3,041
Amortization and write off of debt discount and debt issuance costs	591	458
Stock-based compensation	5,071	5,437
Unrealized loss on foreign currency	1,951
Deferred income taxes	(3,062)	1,456
Loss on equity method investments		2,033
Loss on damaged assets from Hurricanes		35,213
(Gain) Loss on disposition of long-lived assets	(15,509)	513
Gain on sale of investments		(1,055)
Loss on deconsolidation of subsidiary		529
Other non-cash activity	246	512
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions:
Accounts receivable	(7,257)	(8,456)
Materials and supplies, prepayments, and other current assets	(715)	(1,875)
Prepaid income taxes	3,147	995
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities	6,926	13,642
Accrued taxes	7,410	(8,966)
Other assets	139	3,794
Other liabilities	888	7,294
Net cash provided by operating activities	98,014	121,988
Cash flows from investing activities:
Capital expenditures	(75,375)	(108,276)
Hurricane rebuild capital expenditures	(78,903)
Hurricane insurance proceeds	34,606
Receipt of government grants	5,400
Purchase of strategic investments	(3,000)	(18,107)
Divestiture of businesses, net of transferred cash of $0.0 million and $2.1 million, respectively	926	22,381
Acquisition of businesses, net of acquired cash of $0.0 million		(1,183)
Purchases of spectrum licenses and other intangible assets, including deposits		(36,832)
Proceeds from sale of investments	6,564	2,761
Proceeds from sale of assets	4,130
Net cash used in investing activities	(105,652)	(139,256)
Cash flows from financing activities:
Dividends paid on common stock	(8,153)	(16,502)
Proceeds from new borrowings		8,571
Distribution to non-controlling interests	(15,271)	(3,583)
Payment of debt issuance costs		(326)
Proceeds from stock option exercises	72	931
Principal repayments of term loan	(5,723)	(5,446)
Repurchase of common stock	(3,677)	(11,139)
Acquisition of businesses, net of acquired cash of $0.0 million		(1,178)
Repurchases of non-controlling interests	(5,196)	(1,104)
Investments made by minority shareholders in consolidated affiliates		122
Net cash used in provided by financing activities	(37,948)	(29,654)
Effect of foreign currency exchange rates on cash and cash equivalents	(353)	200
Net change in cash, cash equivalents, and restricted cash	(45,939)	(46,722)
Total cash, cash equivalents, and restricted cash, beginning of period	219,890	288,358
Total cash, cash equivalents, and restricted cash, end of period	173,951	241,636
Noncash investing activity:
Transfer from inventory, materials and supplies to property, plant and equipment	6,708
Purchases of property, plant and equipment included in accounts payable and accrued expenses	$ 13,202	$ 15,668

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Net of transferred cash	$ 0.0	$ 2.1
Net of acquired cash, investing activities		0.0
Net of acquired cash, financing activities		$ 0.0

ORGANIZATION AND BUSINESS OPERATIONS

9 Months Ended

Sep. 30, 2018

ORGANIZATION AND BUSINESS OPERATIONS

ORGANIZATION AND BUSINESS OPERATIONS

1.ORGANIZATION AND BUSINESS OPERATIONS

The Company is a holding company that, through its operating subsidiaries, (i) provides wireless and wireline telecommunications services in North America, Bermuda and the Caribbean, (ii) develops, owns and operates commercial distributed generation solar power systems in the United States and India, and (iii) owns and operates terrestrial and submarine fiber optic transport systems in the United States and the Caribbean. The Company was incorporated in Delaware in 1987 and began trading publicly in 1991. Since that time, the Company has engaged in strategic acquisitions and investments to grow its operations. The Company actively evaluates additional domestic and international acquisition, divestiture, and investment opportunities and other strategic transactions in the telecommunications, energy-related and other industries that meet its return-on-investment and other acquisition criteria.

The Company offers the following principal services:

Wireless. In the United States, the Company offers wholesale wireless voice and data roaming services to national, regional, local and selected international wireless carriers in rural markets located principally in the Southwest and Midwest United States. The Company also offers wireless voice and data services to retail and wholesale customers in Bermuda, Guyana, the U.S. Virgin Islands, and the United States.

Wireline. The Company’s wireline services include local telephone and data services in Bermuda, the Cayman Islands, Guyana, the U.S. Virgin Islands, and the United States. The Company’s wireline services also include video services in Bermuda, the Cayman Islands, and the U.S. Virgin Islands. The Company offers wholesale long‑distance voice services to telecommunications carriers. Through March 8, 2017, the Company also offered facilities‑based integrated voice and data communications services and wholesale transport services to enterprise and residential customers in New England, primarily Vermont, and in New York State.

Renewable Energy. In the United States, the Company provided distributed generation solar power to corporate and municipal customers through November 6, 2018. The Company also owns and develops projects in India providing distributed generation solar power to corporate customers.

The following chart summarizes the operating activities of the Company’s principal subsidiaries, the segments in which the Company reports its revenue and the markets it served as of September 30, 2018:


Segment	Services	Markets	Tradenames
U.S. Telecom	Wireless	United States (rural markets)	Commnet, Choice, Choice NTUA Wireless, WestNet, Geoverse
	Wireline	United States	Essextel, Deploycom
International Telecom	Wireline	Bermuda, Guyana, U.S. Virgin Islands, Cayman Islands	One, GTT+, Viya, Logic, Fireminds
	Wireless	Bermuda, Guyana, U.S. Virgin Islands	One, GTT+, Viya
	Video Services	Bermuda, U.S. Virgin Islands, Cayman Islands	One, Viya, Logic
Renewable Energy	Solar	United States (Massachusetts, California, and New Jersey), India	Ahana Renewables, Vibrant Energy

On November 6, 2018, the Company completed the sale of its renewable energy business in the United States to CleanCapital Holdco 4, LLC.

The Company actively evaluates potential acquisitions, investment opportunities and other strategic transactions, both domestic and international, that meet its return on investment and other criteria. The Company provides management, technical, financial, regulatory, and marketing services to its subsidiaries and typically receives a management fee equal to a percentage of their respective revenue. Management fees from subsidiaries are eliminated in consolidation.

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2018

BASIS OF PRESENTATION

BASIS OF PRESENTATION

2. BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The financial information included herein is unaudited; however, the Company believes such information and the disclosures herein are adequate to make the information presented not misleading and reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company’s financial position and results of operations for such periods. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Results of interim periods may not be indicative of results for the full year. These condensed consolidated financial statements and related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 1, 2018.

The condensed consolidated financial statements include the accounts of the Company, its majority-owned subsidiaries and certain entities, which are consolidated in accordance with the provisions of the Financial Accounting Standards Board’s (“FASB”) authoritative guidance on the consolidation of variable interest entities, since it is determined that the Company is the primary beneficiary of these entities.

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), and subsequently issued related updates, (collectively known as ASC 606), which provides a single, comprehensive revenue recognition model for all contracts with customers. The revenue standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this standard on January 1, 2018. Refer to Note 3 to the Consolidated Financial Statements in this Report.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company adopted this standard on January 1, 2018. Upon adoption the Company held $20.1 million of equity investments that did not have readily determinable fair values. As a result these investments are measured at cost less impairments, adjusted for observable price changes of similar investments of the same issuer. The Company performs a qualitative impairment assessment of these investments quarterly by reviewing available information. The Company has not adjusted the cost of these investments since acquisition. Upon adoption, the Company held $0.6 million of equity investments with readily determinable fair values and reclassified $0.2 million of unrealized gains on this investment to retained earnings.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” and subsequently issued related updates (“ASU 2016-02”), which provide comprehensive lease accounting guidance. The standard requires entities to recognize lease assets and liabilities on the balance sheet as well as disclosure of key information about leasing arrangements. ASU 2016-02 will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company is in the process of implementing new systems, processes and controls to implement the guidance. The Company will adopt the standard on January 1, 2019 by applying the new lease requirements at the effective date and will recognize a cumulative-effect adjustment to the opening balance sheet retained earnings in the period of adoption with no adjustments to prior periods. The Company expects to adopt the package of practical expedients which allows it to not reassess: i) whether an arrangement contains a lease, ii) operating and capital lease classifications; and iii) previously recorded initial direct costs. The adoption will result in right to use assets and liabilities being recorded on the Company’s balance sheet. The Company is in the process of determining quantitative information related to the impact of the guidance. The Company expects the adoption of ASU 2016-02 to have a material impact on its financial statements.

In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The Company adopted ASU 2016-09 on January 1, 2017. The guidance requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid-in capital pools. This had no impact on the Company’s historical results. Also as a result of the adoption, the Company changed its policy election to account for forfeitures as they occur rather than on an estimated basis. The change resulted in the Company reclassifying $0.3 million from additional paid-in capital to retained earnings for the net cumulative-effect adjustment in stock compensation expense related to prior periods.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which provides further clarification on eight cash flow classification issues. The Company adopted this standard on January 1, 2018. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” (“ASU 2016-18”). The amendments in ASU 2016-18 are intended to reduce diversity in practice related to the classification and presentation of changes in restricted cash or restricted cash equivalents on the statement of cash flows. The amendments in ASU 2016-18 require that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this standard on January 1, 2018.

The Company’s statement of cash flows reports the cash effects during a period of an entity’s operations, its investing transactions, and its financing transactions. The statement of cash flows explains the change during the period in the total cash which includes cash equivalents as well as restricted cash. The Company applies the predominance principle to classify separately identifiable cash flows based on the nature of the underlying cash flows. Debt prepayment or extinguishment costs are classified as cash outflows from financing activities. Contingent consideration payments made three months or less after a business combination are classified as investing activities and those made after that time are classified as financing activities. Proceeds from the settlement of insurance claims are classified on the basis of the nature of the loss. Prior to January 1, 2018, the Company classified all payments made in a business combination as investing activities and did not include restricted cash in total cash. This change impacted the Company’s cash flows for the nine months ended September 30, 2017 as indicated below (amounts in thousands):


Statement of Cash flows - Nine months ended September 30, 2017

		Reported		Change		Under previous guidance
Net cash provided by operating activities	$	121,988	$	—	$	121,988
Net cash used in investing activities		(139,256)		420		(138,836)
Net cash used in financing activities		(29,654)		1,178		(28,476)
Effect of foreign currency exchange rates on total cash		200		—		200
Net change in total cash	$	(46,722)	$	1,598	$	(45,124)
Total cash, beginning of period		288,358		(18,637)		269,721
Total cash, end of period	$	241,636	$	(17,039)	$	224,597

In October 2016 the FASB issued ASU 2016-16, “Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory”. The new standard eliminates all intra-entity sales of assets other than inventory, the exception under current standards that permits the tax effects of intra-entity asset transfers to be deferred until the transferred asset is sold to a third party or otherwise recovered through use. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. The new standard was effective for the Company on January 1, 2018. There was not a material impact to the Company’s consolidated financial statements upon adoption.

In January 2017, the FASB issued ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” or (“ASU 2017-04”). The amendments in ASU 2017-04 simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities. Instead, under the amendments in ASU 2017-04, an entity performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, but not more than the total amount of goodwill allocated to the reporting unit. ASU 2017-04 is effective for annual reporting periods, including interim periods within those periods, beginning after December 15, 2019, with early adoption permitted. The Company adopted this standard in the third quarter of 2017.

In March 2017, the FASB issued ASU 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. The new guidance requires the service cost component to be presented separately from the other components of net benefit costs. Service cost will be presented with other employee compensation cost within income from operations. The other components of net benefit cost, such as interest cost, amortization of prior service cost and gains or losses are required to be presented in other income. The Company adopted this standard on January 1, 2018.

The Company sponsors pension and other postretirement benefit plans for employees of certain subsidiaries. Net periodic pension expense consists of service cost, interest cost, expected return on plan assets, and amortization of actuarial gains and losses. Service cost is recognized in operating income and all other components of pension expense are recognized in other income in the Company’s Statement of Operations. The Company recognizes a pension or other postretirement plan’s funded status as either an asset or liability in its consolidated balance sheet. Actuarial gains and losses are reported as a component of other comprehensive income and amortized through other income in subsequent periods. Prior to January 1, 2018, all components of pension expense were recognized in operating income. This change impacted the Company’s Statement of Operations for the three and nine months ended September 30, 2017 by increasing operating expenses $40 thousand and $120 thousand, respectively and increasing other income by the same amount. There was no impact on income before income taxes. The Company elected the practical expedient allowing the use of the amounts disclosed for the various components of net benefit cost in the pension and other postretirement benefit plans footnote as the basis for the retrospective application.

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The standard: (a) expands and refines hedge accounting for both financial and non-financial risk components, (b) aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and (c) includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including the adoption in an interim period. If an entity early adopts in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The guidance related to cash flow and net investment hedges existing at the date of adoption should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The guidance related to presentation and disclosure should be applied prospectively. The Company is currently assessing the impact of ASU 2017-12 on its consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02 “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” (“ASU 2018-02”). The standard gives entities the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income that were impacted by the Tax Cuts and Jobs Act of 2017 (“Tax Act”). The guidance is effective for all entities for fiscal years beginning after December 31, 2018 and interim periods within those fiscal years. Early adoption is permitted. The guidance may be applied in the period of adoption or retrospectively to each impacted period. The Company has elected to early adopt ASU 2018-02 on December 31, 2017 and recorded its impact in the period of adoption. The impact of the adoption results in a $0.8 million reclassification from accumulated other comprehensive income to retained earnings, which is offset by an equivalent valuation allowance, with the net impact being zero.

REVENUE RECOGNITION

9 Months Ended

Sep. 30, 2018

REVENUE RECOGNITION

REVENUE RECOGNITION

3. Revenue Recognition

The Company’s significant accounting policies are detailed in “Note 2 – Summary of Significant Accounting Policies” within Item 8 of its Annual Report on Form 10-K for the year ended December 31, 2017. The Company’s accounting policies are updated as a result of adopting ASC 606 on January 1, 2018. The adoption of ASC 606 impacted the accounting for contract acquisition costs, multiyear retail wireless contracts with promotional discounts, and deferral of certain activation fees as further described below.

Revenue Recognition – The Company earns revenue from its telecommunication and renewable energy operations. The Company recognizes revenue through the following steps:

Identification of the contract with a customer

Identification of the performance obligations in the contract

Determination of the transaction price

Allocation of the transaction price to the performance obligations in the contract

Recognize revenue when, or as, we satisfy performance obligations

Revenue Recognition- Telecommunications

Wireless revenue consists of wholesale and retail revenue. Wholesale revenue is generated from providing mobile voice and data services to the customers of other wireless carriers, the provision of network switching services and certain transport services using the Company’s wireless networks. The transaction price of some wholesale revenue contracts includes variable consideration in the form of volume discounts. Management uses its judgment based on projected transaction volumes to estimate the transaction price and to allocate the transaction price to the performance obligations in the contract. Revenue is recognized over time as the service is rendered to the customer. Retail revenue is generated from providing mobile voice and data services to subscribers as well as roaming services provided to other carriers’ customers roaming into the Company’s retail markets. This revenue is recognized over time as the service is rendered. Lastly, wireless revenue includes revenues from equipment sold to customers which is recognized when the equipment is delivered to the customer.

Management considers transactions where customers purchase subsidized or discounted equipment and mobile voice or data services to be a single contract. For these contracts, the transaction price is allocated to the equipment and mobile service based on their standalone selling prices. The standalone selling price is based on the amount the Company charges for the equipment and service to similar customers. Equipment revenue is recognized when the equipment is delivered to customers and service revenue is recognized as service is rendered.

Wireline revenue is generated from access and usage fees for internet, voice and video services charged to subscribers as well as wholesale long-distance voice services provided to telecommunication carriers at contracted rates. Revenue from these contracts is recognized over time as the service is rendered to the customer.

The Company’s wireless and wireline contracts occasionally include promotional discounts such as free service periods or discounted products. If a contract contains a substantive termination penalty, the transaction price is allocated to the performance obligations based on standalone selling price resulting in accelerated revenue recognition and the establishment of a contract asset that will be recognized over the life of the contract. If a contract includes a promotional discount but no substantive termination penalty the discount is recorded in the promotional period and no contract asset is established. The Company’s customers also have the option to purchase additional telecommunication services. Generally, these options are not performance obligations and are excluded from the transaction price because they do not provide the customers with a material right.

The Company may charge upfront fees for activation and installation of some of its products and services. These fees are reviewed to determine if they represent a separate performance obligation. If they are not a separate performance obligation, the contract price associated with them is recognized over the life of the customer. If the fees represent a performance obligation they are recognized when delivered to the customer based on standalone selling price.

Sales and use and state excise taxes collected from customers that are remitted to the governmental authorities are reported on a net basis and excluded from the revenues and sales.

Revenue Recognition-Renewable Energy

Revenue from the Company’s Renewable Energy segment is generated from the sale of electricity through power purchase agreements (“PPAs”) with various customers that generally range from 10 to 25 years. The Company recognizes revenue at contractual PPA rates over time as electricity is generated and simultaneously consumed by the customer. The Company’s Renewable Energy segment also generates revenue from the sale of Solar Renewable Energy Credits (“SRECs”). Revenue is recognized over time as SRECs are sold through long-term purchase agreements at the contractual rate specified in the agreement.

Disaggregation

The Company's revenue is presented on a disaggregated basis in Note 13 based on an evaluation of disclosures outside the financial statements, information regularly reviewed by the chief operating decision maker for evaluating the financial performance of operating segments and other information that is used for performance evaluation and resource allocations. This includes revenue from wireline, wireless and renewable energy, as well as domestic versus international wireline and wireless services. This disaggregation of revenue depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Contract Assets and Liabilities

The Company recognizes contract assets and liabilities on its balance sheet. Contract assets represent unbilled amounts typically resulting from retail wireless contracts with both a multiyear service period and a promotional discount. In these contracts the revenue recognized exceeds the amount billed to the customer. The current portion of the contract asset is recorded in prepayments and other current assets and the noncurrent portion is included in other assets on its balance sheets. Contract liabilities consist of advance payments and billings in excess of revenue recognized. Retail revenue for postpaid customers is generally billed one month in advance and recognized over the period that the corresponding service is rendered to customers. To the extent the service is not provided by the reporting date the amount is recognized as a contract liability. Prepaid service, including mobile voice and data services, sold to customers is recorded as deferred revenue prior to the commencement of services. Contract liabilities are recorded in advanced payments and deposits on its balance sheets. Contract assets and liabilities consisted of the following (amounts in thousands):


		September 30, 2018		June 30, 2018		$ Change	% Change
Contract asset – current	$	1,577	$	1,434	$	143	10%
Contract asset – noncurrent		603		568		35	6%
Contract liabilities		(10,867)		(9,552)		(1,315)	14%
Net contract liability	$	(8,687)	$	(7,550)	$	(1,137)	15%

The contract asset-current is included in prepayments and other current assets, the contract asset – noncurrent is included in other assets, and the contract liabilities are included in advance payments and deposits on the Company’s balance sheet. The increase in the Company’s net contract liability was due to the timing of customer prepayments and contract billings. In the third quarter of 2018, the Company recognized revenue of $6.9 million related to its June 30, 2018 contract liability and amortized $0.5 million of the June 30, 2018 contract asset into revenue. The Company did not recognize any revenue in the third quarter of 2018 related to performance obligations that were satisfied or partially satisfied in previous periods.

Contract Acquisition Costs

The Company pays sales commissions to its employees and agents for obtaining customer contracts. These costs are incremental because they would not have been incurred if the contract was not obtained. The Company recognizes an asset for these costs and subsequently amortizes the asset on a systematic basis consistent with the pattern of the transfer of the services to the customer. The amortization period, which is between 2 and 6 years, considers both the original contract period as well as anticipated contract renewals as appropriate. The amortization period also includes renewal commissions when those commissions are not commensurate with new commissions. The Company estimates contract renewals based on its actual renewals in recent periods. When the expected amortization period is one year or less the Company utilizes the practical expedient and expenses the costs as incurred. The September 30, 2018 balance sheet includes current contract acquisition costs of $1.5 million in prepayments and other current assets and long term contract acquisition costs of $0.7 million in other assets. During the three and nine months ended September 30, 2018 the Company amortized $0.6 million and $1.2 million, respectively, of contract acquisition cost.

Remaining Performance Obligations

Remaining performance obligations represent the transaction price allocated to unsatisfied performance obligations of certain multiyear retail wireless contracts that include a promotional discount. The transaction price allocated to unsatisfied performance obligations was $10.7 million at September 30, 2018. The Company expects to satisfy the remaining performance obligations and recognize the transaction price within 24 months. The Company has certain retail, wholesale, and renewable energy contracts where transaction price is allocated to remaining performance obligations. However the Company omits these contracts from the disclosure by applying the right to invoice, one year or less, and wholly unsatisfied performance obligation practical expedients.

Impacts of adoption in the current period

The Company adopted ASC 606 on January 1, 2018 using the modified retrospective method. The Company elected the practical expedient to apply the new guidance only to contracts that were not substantially complete at the adoption date. The cumulative effect of adopting ASC 606 resulted in a contract asset of $1.6 million of which $1.2 million was recorded in prepayments and other current assets and $0.4 million was recorded in other assets, a contract liability of $0.2 million recorded in advance payments and deposits, contract acquisition costs of $1.5 million of which $0.9 million was recorded in prepayments and other current assets and $0.6 million was recorded in other assets, and a deferred tax liability of $0.3 million with the offset of $1.5 million recorded to retained earnings and $1.1 million recorded to minority interest. The tables below identify changes to the Company’s financial statements as of September 30, 2018 and for the three and nine months then ended as a result of the adoption of ASC 606 as compared to previous revenue guidance (amounts in thousands):


Balance Sheet - September 30, 2018
		Reported		Change		Under previous guidance
Prepayments and other current assets	$	37,239	$	(3,115)	$	34,124

Total current assets	$	349,297	$	(3,115)	$	346,182

Other assets	$	38,773	$	(1,290)	$	37,483

Total assets	$	1,184,050	$	(4,405)	$	1,179,645

Advance payments and deposits	$	18,076	$	(332)	$	17,744
Accrued taxes		12,789		(73)		12,716

Total current liabilities	$	215,326	$	(405)	$	214,921

Deferred income taxes	$	7,614	$	(302)	$	7,312

Total liabilities	$	355,003	$	(707)	$	354,296

Retained earnings	$	565,180	$	(2,107)	$	563,073
Minority interest	$	131,392	$	(1,591)	$	129,801

Total equity	$	829,047	$	(3,698)	$	825,349

Total liabilities and equity	$	1,184,050	$	(4,405)	$	1,179,645


		Statement of Operations

		Three months ended September 30, 2018						Nine months ended September 30, 2018

		Reported		Change		Under previous guidance		Reported		Change		Under previous guidance
Wireless revenue	$	52,003	$	(177)	$	51,826	$	153,046	$	(514)	$	152,532

Total revenue	$	121,138	$	(177)	$	120,961	$	343,401	$	(514)	$	342,887

Sales, marketing and customer service	$	8,995	$	4	$	8,999	$	25,969	$	622	$	26,591

Total operating expenses	$	90,314	$	4	$	90,318	$	292,615	$	622	$	293,237

Income from operations	$	30,824	$	(181)	$	30,643	$	50,786	$	(1,136)	$	49,650
Income before taxes		27,919		(181)		27,738		42,405		(1,136)		41,269
Income tax provision		7,010		69		7,079		13,018		(73)		12,945

Net income	$	20,909	$	(250)	$	20,659	$	29,387	$	(1,063)	$	28,324
Net income attributable to non-controlling interests		(3,887)		109		(3,778)		(10,705)		444		(10,261)
Net income attributable to ATN International, Inc. stockholders	$	17,022	$	(141)	$	16,881	$	18,682	$	(619)	$	18,063


		Statement of Comprehensive Loss

		Three months ended September 30, 2018						Nine months ended September 30, 2018

		Reported		Change		Under previous guidance		Reported		Change		Under previous guidance
Net income	$	20,909	$	(250)	$	20,659	$	29,387	$	(1,063)	$	28,324
Other comprehensive loss, net of tax		(2,465)		-		(2,465)		(5,867)		-		(5,867)
Comprehensive loss		18,444		(250)		18,194		23,520		(1,063)		22,457
Less: Comprehensive income attributable to non-controlling interests		(3,887)		109		(3,778)		(10,705)		444		(10,261)
Comprehensive income (loss) attributable to ATN International, Inc.	$	14,557	$	(141)	$	14,416	$	12,815	$	(619)	$	12,196


Statement of Cash Flows - Nine months ended September 30, 2018

		Reported		Change (1)		Under previous guidance
Net income	$	29,387	$	(1,063)	$	28,324

Materials and supplies, prepayments and other current assets	$	(715)	$	1,039	$	324
Accrued taxes		7,410		(73)		7,337
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities		6,926		(102)		6,824
Other assets	$	139	$	199	$	338

(1)

The adoption of ASC 606 had no impact on operating cash flows, investing cash flows, financing cash flows or net change in total cash.

USE OF ESTIMATES	9 Months Ended
USE OF ESTIMATES	Sep. 30, 2018
USE OF ESTIMATES
USE OF ESTIMATES	4. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates relate to the allowance for doubtful accounts, useful lives of the Company’s fixed and finite-lived intangible assets, allocation of purchase price to assets acquired and liabilities assumed in business combinations, fair value of indefinite-lived intangible assets, goodwill, assessing the impairment of assets, revenue, and income taxes. Actual results could differ significantly from those estimates.

IMPACT OF HURRICANES IRMA AND MARIA	9 Months Ended
IMPACT OF HURRICANES IRMA AND MARIA	Sep. 30, 2018
IMPACT OF HURRICANES IRMA AND MARIA
IMPACT OF HURRICANES IRMA AND MARIA	5. IMPACT OF HURRICANES IRMA AND MARIA During September 2017, the economy, the Company’s customer base and its operations in the U.S. Virgin Islands were severely impacted by Hurricanes Irma and Maria (collectively, the “Hurricanes”). Both the Company’s wireless and wireline networks and commercial operations were severely damaged by these storms. As a result of the significant damage to the Company’s wireline network and the lack of consistent commercial power in the territory, the Company was unable to provide most of its wireline services, which comprise the majority of revenue in this business, after the Hurricanes and through much of 2018 to date. During the three months ended September 30, 2018, the Company received $7.2 million in additional funding from the FCC’s Universal Service Fund (“USF”) which largely contributed to a $4.6 million increase in the Company’s revenues in that market as compared to the same period in 2017. For the nine months ended September 30, 2018, the Company’s received a total of $15.4 million in additional USF funding which offset $11.6 million decrease in revenue as compared to the same period in 2017. This level of additional funding will not continue in future quarters. During the nine months ended September 30, 2018, the Company spent $78.9 million for network restoration and resiliency enhancements which allowed the reconnection of a significant majority of households and businesses as of the period end. The Company expects that its wireline network restoration work is substantially complete, however, returning the Company’s revenue to pre-Hurricane levels may take significant time as a result of population movements, the economic impact that the Hurricanes had on the market, and its subscriber base’s appetite for continued wireline services.

DISPOSITIONS

9 Months Ended

Sep. 30, 2018

DISPOSITIONS

DISPOSITIONS

6. DISPOSITIONS

International Telecom

On January 3, 2017, the Company completed the sale of the Viya cable operations located in St. Maarten for $4.8 million and recognized a gain of $0.1 million on the transaction.

On August 18, 2017, the Company completed the sale of the Viya cable operations located in the British Virgin Islands. The Company did not recognize a gain or loss on the transaction.

The results of the British Virgin Islands and St. Maarten operations are not material to the Company’s historical results of operations. Since the dispositions do not relate to a strategic shift in its operations, the historical results and financial position of the operations are presented within continuing operations.

U.S. Telecom

On March 8, 2017, the Company completed the sale of its integrated voice and data communications and wholesale transport businesses in New England and New York for consideration of $25.9 million (the “Sovernet Transaction”). The consideration included $20.9 million of cash, $3.0 million of receivables, and $2.0 million of contingent consideration. The $3.0 million of receivables were held in escrow to satisfy working capital adjustments in favor of the acquirer, to fund certain capital expenditure projects related to the assets sold and to secure the Company’s indemnification obligations. The contingent consideration represents the fair value of future payments related to certain operational milestones of the disposed assets. The value of the contingent consideration could increase to as much as $4.0 million based on whether or not certain operational milestones were achieved by December 31, 2017. The table below identifies the assets and liabilities transferred (amounts in thousands):


Consideration Received	$	25,926

Assets and liabilities disposed
Cash		1,821
Accounts receivable		1,696
Inventory		639
Prepayments and other current assets		1,034
Property, plant and equipment		25,294
Other assets		288
Accounts payable and accrued liabilities		(1,718)
Advance payments and deposits		(1,897)
Net assets disposed		27,157

Consideration less net assets disposed		(1,231)

Transaction costs		(1,156)

Loss	$	(2,387)

Prior to the closing of the Sovernet Transaction, the Company repurchased non-controlling interests from minority shareholders in a Sovernet subsidiary for $0.7 million. The non-controlling interest had a book value of zero. Additionally, the Company recorded a loss on deconsolidation of $0.5 million.

The Company incurred $1.2 million of transaction related charges pertaining to legal, accounting and consulting services associated with the Sovernet Transaction, of which $0.6 million was incurred during the year ended December 31, 2017. Since the Sovernet Transaction does not relate to a strategic shift in the Company’s operations, the historic results and financial position of the operations are presented within continuing operations.

Subsequent to close of the Sovernet Transaction, management continually monitored and assessed the probability of earning the contingent consideration. In September 2017, based on progress toward achieving the operational milestones, and the December 31, 2017 deadline under which to do so, management determined that earning the contingent consideration was unlikely. As a result the fair value of the contingent consideration was reduced to zero. The amount was recorded as a loss on disposition of assets within operating income during the nine months ended September 30, 2017. The disposed assets did not achieve the operational milestones by the December 31, 2017 deadline.

Renewable Energy

On November 6, 2018, the Company completed the sale of its U.S. solar business that owns and manages distributed generation solar power projects operated under the Ahana name in Massachusetts, California and New Jersey (the “U.S. Solar Operations”) to CleanCapital Holdco 4, LLC. The transaction has a total value of approximately $122.6 million, which includes a cash purchase price of $65.4 million and the assumption of approximately $57.2 million in debt, and is subject to certain other post-closing adjustments (the “U.S. Solar Transaction”). Approximately $6.5 million of the purchase price will be held in escrow for a period of twelve months after the closing to secure the Company’s indemnification obligation and the Company expects to record a gain between $10 million and $15 million during the fourth quarter of 2018.

As of September 30, 2018 the assets and liabilities being disposed in the U.S. Solar Transaction were classified as held for sale. The table below identifies the assets and liabilities (amounts in thousands):


Assets and Liabilities Held for Sale
Accounts receivable	$	1,599
Prepayments and other current assets		783
Property, plant and equipment		113,569
Accumulated depreciation		(18,474)
Current assets held for sale	$	97,477

Accounts payable	$	1,742
Taxes payable		(586)
Current portion of long-term debt		10,126
Long-term debt, excluding current portion		48,034
Deferred income taxes		21,357
Current liabilities held for sale	$	80,673

The U.S. Solar Operations reported income before income taxes of $0.4 million and $1.1 million for the three months ended September 30, 2018 and 2017, respectively, and $2.4 million and $3.8 million for the nine months ended September 30, 2018 and 2017, respectively. The U.S. Solar Operations reported non-controlling interest expense of $0.2 million and $0.3 million for the three months ended September 30, 2018 and 2017, respectively, and $0.7 million and $0.8 million for the nine months ended September 30, 2018 and 2017, respectively. Lastly, the U.S. Solar Operations reported depreciation expense of $1.3 million and $3.8 million for the three and nine months ended September 30, 2018, respectively.

The U.S. Solar Operations do not qualify as a discontinued operation because the disposition does not represent a strategic shift that has a major effect on the Company’s operations and financial results. As a result, the historical results are included in continuing operations.

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2018

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

7. FAIR VALUE MEASUREMENTS

In accordance with the provisions of fair value accounting, a fair value measurement assumes that a transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model.

The fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:


Level 1		Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset and liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 assets and liabilities include money market funds, debt and equity securities and derivative contracts that are traded in an active exchange market.

Level 2		Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange‑traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes corporate obligations and non‑exchange traded derivative contracts.

Level 3		Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments and intangible assets that have been impaired whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Assets and liabilities of the Company measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 are summarized as follows (in thousands):


			September 30, 2018
			Significant Other
	Quoted Prices in		Observable
	Active Markets		Inputs
Description	(Level 1)		(Level 2)		Total
Certificates of deposit	$	—	$	380	$	380
Money market funds		2,399		—		2,399
Short term investments		314		—		314
Commercial paper		—		23,977		23,977
Interest rate swap		—		277		277
Total assets and liabilities measured at fair value	$	2,713	$	24,634	$	27,347


	December 31, 2017
			Significant Other
	Quoted Prices in		Observable
	Active Markets		Inputs
Description	(Level 1)		(Level 2)		Total
Certificates of deposit	$	—	$	391	$	391
Money market funds		2,894		—		2,894
Short term investments		555		6,521		7,076
Commercial paper		—		49,954		49,954
Interest rate swap		—		52		52
Total assets and liabilities measured at fair value	$	3,449	$	56,918	$	60,367

Certificate of Deposit

As of September 30, 2018 and December 31, 2017, this asset class consisted of a time deposit at a financial institution denominated in U.S. dollars. The asset class is classified within Level 2 of the fair value hierarchy because the fair value was based on observable market data.

Money Market Funds

As of September 30, 2018 and December 31, 2017, this asset class consisted of a money market portfolio that comprises Federal government and U.S. Treasury securities. The asset class is classified within Level 1 of the fair value hierarchy because its underlying investments are valued using quoted market prices in active markets for identical assets.

Short Term Investments and Commercial Paper

As of September 30, 2018 and December 31, 2017, these asset classes consisted of short term foreign and U.S. corporate bonds, equity securities, and commercial paper. Corporate bonds and commercial paper are classified within Level 2 of the fair value hierarchy because the fair value is based on observable market data. Equity securities are classified within Level 1 because fair value is based on quoted market prices in active markets for identical assets. The Company held equity securities with a fair value of $0.4 million at September 30, 2018 and net income for the three months then ended included $0.1 million of losses on these securities.

Other Fair Value Disclosures

The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate their fair values because of the relatively short-term maturities of these financial instruments. The fair value of the interest rate swap is measured using Level 2 inputs.

At September 30, 2018, the Company holds $23.1 million of equity securities consisting of non-controlling investments in privately held companies. These investments, over which the Company does not have the ability to exercise significant influence, are without readily determinable fair values. The investments are measured at cost, less any impairment, adjusted for observable price changes of similar investments of the same issuer. Fair value is not estimated for these investments if there are no identified events or changes in circumstances that may have an effect on the fair value of the investment. The carrying value of the strategic investments was $23.1 million and $20.1 million at September 30, 2018 and December 31, 2017, respectively. As of September 30, 2018 no impairments or price adjustments were recorded on the investments. Strategic investments are included with other assets on the consolidated balance sheets.

The fair value of long-term debt is estimated using Level 2 inputs. At September 30, 2018, the fair value of long-term debt, including the current portion, was $153.2 million and its book value was $150.0 million. At December 31, 2017, the fair value of long-term debt, including the current portion, was $159.2 million and its book value was $155.8 million.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

LONG-TERM DEBT	9 Months Ended
LONG-TERM DEBT	Sep. 30, 2018
LONG-TERM DEBT
LONG-TERM DEBT	8. LONG-TERM DEBT The Company has a credit facility with CoBank, ACB and a syndicate of other lenders to provide for a $225 million revolving credit facility (the “Credit Facility”) that includes (i) up to $10 million under the Credit Facility for standby or trade letters of credit, (ii) up to $25 million under the Credit Facility for letters of credit that are necessary or desirable to qualify for disbursements from the FCC’s mobility fund and (iii) up to $10 million under a swingline sub-facility ( the “Swingline Loans”). Amounts the Company may borrow under the Credit Facility bear interest at a rate equal to, at its option, either (i) the London Interbank Offered Rate (“LIBOR”) plus an applicable margin ranging between 1.50% to 1.75% or (ii) a base rate plus an applicable margin ranging from 0.50% to 0.75%. The Swingline Loans will bear interest at the base rate plus the applicable margin for base rate loans. The base rate is equal to the higher of (i) 1.00% plus the higher of (x) the one-week LIBOR and (y) the one-month LIBOR; (ii) the federal funds effective rate (as defined in the Credit Facility) plus 0.50% per annum; and (iii) the prime rate (as defined in the Credit Facility). The applicable margin is determined based on the ratio (as further defined in the Credit Facility) of the Company’s indebtedness to EBITDA. Under the terms of the Credit Facility, the Company must also pay a fee ranging from 0.175% to 0.250% of the average daily unused portion of the Credit Facility over each calendar quarter. On January 11, 2016, the Company amended the Credit Facility (the “Amendment”) to increase the amount the Company is permitted to invest in “unrestricted” subsidiaries of the Company, which are not subject to the covenants of the Credit Facility, from $275.0 million to $400.0 million (as such increased amount shall be reduced from time to time by the aggregate amount of certain dividend payments to the Company’s stockholders). The Amendment also provides for the incurrence by the Company of incremental term loan facilities, when combined with increases to revolving loan commitments under the Credit Facility, in an aggregate amount not to exceed $200.0 million, which facilities shall be subject to certain conditions, including pro forma compliance with the total net leverage ratio financial covenant under the Credit Facility. The Credit Facility contains customary representations, warranties and covenants, including a financial covenant that imposes a maximum ratio of indebtedness to EBITDA as well as covenants limiting additional indebtedness, liens, guaranties, mergers and consolidations, substantial asset sales, investments and loans, sale and leasebacks, transactions with affiliates and fundamental changes. In addition, the Credit Facility contains a financial covenant that imposes a maximum ratio of indebtedness to EBITDA. As of September 30, 2018, the Company was in compliance with all of the financial covenants of the Credit Facility. As of September 30, 2018, the Company had no borrowings under the Credit Facility. Ahana Debt On December 24, 2014, in connection with the acquisition of its U.S. solar business that owns and manages distributed generation solar power projects operated under the Ahana name in Massachusetts, California and New Jersey, the Company assumed $38.9 million in long-term debt (the “Original Ahana Debt”). The Original Ahana Debt included multiple loan agreements with banks that bore interest at rates between 4.5% and 6.0%, matured at various times between 2018 and 2023 and were secured by certain solar facilities. Repayment of the Original Ahana Debt was being made in cash on a monthly basis until maturity. The Original Ahana Debt also included a loan from Public Service Electric & Gas (the “PSE&G Loan”). The PSE&G Loan bears interest at 11.3%, matures in 2027, and is secured by certain solar facilities. Repayment of the Original Ahana Debt with PSE&G can be made in either cash or sale of SREC, at the Company’s discretion, with the value of the SRECs being fixed at the time of the PSE&G Loan closing. Historically, the Company has made all repayments of the PSE&G Loan using SRECs. On December 19, 2016, Ahana’s wholly owned subsidiary, Ahana Operations, issued $20.6 million in aggregate principal amount of 4.427% senior notes due 2029 (the “Series A Notes”) and $45.2 million in aggregate principal amount of 5.327% senior notes due 2031 (the “Series B Notes” and collectively with the Series A Notes and the PSE&G Loan, the “Ahana Debt”). Interest and principal are payable semi-annually, until the respective maturity dates of March 31, 2029 (for the Series A Notes) and September 30, 2031 (for the Series B Notes). Cash flows generated by the solar projects that secure the Series A Notes and Series B Notes are only available for payment of such debt and are not available to pay other obligations or the claims of the creditors of Ahana or its subsidiaries. However, subject to certain restrictions, Ahana Operations holds the right to the excess cash flows not needed to pay the Series A Notes and Series B Notes and other obligations arising out of the securitizations. The Series A Notes and Series B Notes are secured by certain assets of Ahana and are guaranteed by certain of its subsidiaries. A portion of the proceeds from the issuances of the Series A Notes and Series B Notes was used to repay the Original Ahana Debt in full except for the PSE&G Loan which remained outstanding after the refinancing. The Series A Notes and the Series B Notes contain customary representations, warranties and certain affirmative and negative covenants, which limit additional indebtedness, liens, guaranties, mergers and consolidations, substantial asset sales, investments and loans, sale and leasebacks, transactions with affiliates and fundamental changes. The Series A Notes and Series B Notes are subject to financial covenants that impose 1) a maximum debt service coverage ratio and 2) a maximum ratio of the present value of Ahana’s future cash flow to the aggregate principal amounts of all outstanding obligations. These financial covenants are tested semi-annually for Ahana Operations on a consolidated basis and on an individual basis for certain subsidiaries. Both the Series A Notes and Series B Notes may be redeemed at any time, in whole or part, subject to a make-whole premium. As of September 30, 2018, the Company was in compliance with all of the financial covenants of the Series A Notes and the Series B Notes. The Company capitalized $2.8 million of fees associated with the Series A Notes and Series B Notes which is recorded as a reduction to the debt carrying amount and will be amortized over the life of the notes. As of September 30, 2018, $2.0 million of the Original Ahana Debt and $58.6 million of the Series A Notes and Series B Notes remained outstanding, and $2.5 million of the capitalized fees remain unamortized. The Original Ahana Debt, the Series A Notes and Series B Notes were classified as held for sale as part of the U.S. Solar Transaction as of September 30, 2018. On November 6, 2018, the Company consummated the U.S. Solar Transaction, which included the transfer of the Original Ahana Debt, the Series A Notes and Series B Notes to the purchaser. Refer to Note 6 to the Consolidated Financial Statements in this Report. One Communications Debt In connection with the acquisition of One Communications on May 3, 2016, the Company assumed $35.4 million in debt (the “One Communications Debt”) in the form of a loan from HSBC Bank Bermuda Limited. The One Communications Debt was scheduled to mature in 2021, was bearing interest at the three-month LIBOR rate plus a margin of 3.25%, and had repayment being made quarterly. The One Communications Debt contained customary representations, warranties and affirmative and negative covenants (including limitations on additional debt, guaranties, sale of assets and liens) and a financial covenant that limited the maximum ratio of indebtedness less cash to annual operating cash flow. On May 22, 2017, the Company amended and restated the One Communications Debt to increase the original facility to $37.5 million. The amended and restated debt is scheduled to mature on May 22, 2022 and bears interest at the three month LIBOR rate plus an applicable margin rate ranging between 2.5% to 2.75% paid quarterly. The amended and restated One Communications Debt contains customary representations, warranties and affirmative and negative covenants (including limitations on additional debt, guaranties, sale of assets and liens) and financial covenants that limit the ratio of tangible net worth to long term debt and total net debt to EBITDA and require a minimum debt service coverage ratio (net cash generated from operating activities plus interest expense less net capital expenditures to debt repayments plus interest expense). The Company was in compliance with its covenants as of September 30, 2018 As a condition of the amendment of the One Communications Debt, within 90 days of the refinance date the Company was required to enter into a hedging arrangement with a notional amount equal to at least 30% of the outstanding loan balance and a term corresponding to the maturity of the One Communications Debt. In July 2017, the Company entered into an amortizing interest rate swap. This swap has been designated as a cash flow hedge, has an original notional amount of $11.0 million, has an interest rate of 1.874%, and expires in March 2022. In connection with the amendment of the One Communications Debt, the Company increased the limit of its overdraft facility from $5.0 million to $10.0 million. This facility has an interest rate of three month LIBOR plus 1.75%. The Company capitalized $0.3 million of fees associated with the One Communications Debt, which is recorded as a reduction to the debt carrying amount and will be amortized over the life of the debt. As of September 30, 2018, $32.8 million of the One Communications Debt was outstanding, there were no borrowings under the overdraft facility, and $0.2 million of the capitalized fees remain unamortized. Viya Debt (formerly Innovative Debt) On July 1, 2016, the Company and certain of its subsidiaries entered into a $60.0 million loan agreement (the “Viya Debt”) with Rural Telephone Finance Cooperative (“RTFC”). The Viya Debt agreement contains customary representations, warranties and affirmative and negative covenants (including limitations on additional debt, guaranties, sale of assets and liens) and a financial covenant that limits the maximum ratio of indebtedness to annual operating cash flow to 3.5 to 1.0 (the “Net Leverage Ratio”). This covenant is tested on an annual basis at the end of each fiscal year. Interest is paid quarterly at a fixed rate of 4.0% and principal repayment is not required until maturity on July 1, 2026. Prepayment of the Viya Debt may be subject to a fee under certain circumstances. The debt is secured by certain assets of the Company’s Viya subsidiaries and is guaranteed by the Company. Earlier in 2018, the Company began funding the restoration of Viya’s network following the Hurricanes through an intercompany loan arrangement which exceeded certain limitations on Viya incurring additional debt. RTFC consented to these intercompany advances and increased the intercompany debt limit to $50.0 million. During the three months ended September 30, 2018, RTFC increased the limit to $75.0 million at the Company’s request due to an increase in the on-going restoration and resiliency costs. The Company paid a fee of $0.9 million to lock the interest rate at 4% per annum over the term of the Viya Debt. The fee was recorded as a reduction to the Viya Debt carrying amount and will be amortized over the life of the loan. As of September 30, 2018, $60.0 million of the Viya Debt remained outstanding and $0.7 million of the rate lock fee was unamortized.

GOVERNMENT GRANTS	9 Months Ended
GOVERNMENT GRANTS	Sep. 30, 2018
GOVERNMENT GRANTS
GOVERNMENT GRANTS	9. GOVERNMENT GRANTS Universal Service Fund The USF is a system of subsidies and fees managed by the FCC. USF funds are disbursed to telecommunication providers through four programs: the Connect America Fund; Lifeline; Schools and Libraries Program (“E-Rate”); and Rural Health Care Support. The Company participates in the Connect America Fund; Lifeline, E-Rate programs, and Rural Health Care Support programs as further described below. All of the funding programs are subject to certain operational and reporting compliance requirements. The Company believes it is in compliance will all applicable requirements. The FCC’s Mobility Funds and High Cost Support programs are administered through the Connect America Fund. The High-Cost Support program subsidizes telecommunications services in rural and remote areas. The FCC created the Phase I Mobility Fund (“Phase I Mobility Fund”), a one-time award meant to support wireless coverage in underserved geographic areas in the United States. The Company received $21.1 million of Phase I Mobility Fund support to its wholesale wireless business (the “Mobility Funds”) to be used to expand voice and broadband networks in certain geographic areas in order to offer either 3G or 4G service. Of these funds, $7.2 million was recorded as an offset to the cost of the property, plant, and equipment associated with these projects and, consequentially, a reduction of future depreciation expense. The remaining $13.9 million received offset operating expenses from inception of the program through part of the third quarter of 2018. The Mobility Funds projects and their operating results are included within the Company’s U.S. Telecom segment. As part of the receipt of the Mobility Funds, the Company committed to comply with certain additional FCC construction and other requirements. If the requirements are not met the funds may be subject to claw back provisions. The Company currently expects to comply with all applicable requirements related to these funds. During the three and nine months ended September 30, 2018, the Company recorded $4.1 million and $12.4 million, respectively, of revenue from High Cost Support in its International Telecom segment for its U.S. Virgin Islands operations. Also, during the three and nine months ended September 30, 2018, the Company recorded $0.3 million and $0.9 million, respectively, of High Cost Support revenue in its US Telecom segment. The Company is subject to certain operational, reporting and construction requirements as a result of this funding and the Company believes that it is in compliance with all of these requirements. In addition, the Company recorded revenue of $7.2 million and $15.4 million during the three and nine months ended September 30, 2018, respectively, from additional funding authorized by the FCC following the Hurricanes. In August 2018, the Company was awarded $79.9 million over 10 years under the Connect America Fund Phase II Auction. The funding requires the Company to provide fixed broadband and voice services to certain eligible areas in the United States. The Company is subject to operational and reporting requirements under the program. The Company expects to begin receiving the funding in 2019 and are still evaluating how these funds will be recorded. The E-Rate program provides discounted telecommunication access to eligible schools and libraries. The E-Rate program awards providers grants to build network connectivity for eligible participants and pays recurring charges for eligible broadband services. The grants are distributed upon completion of a project. As of September 30, 2018, the Company was awarded approximately $15.4 million of E-Rate grants with construction completion obligations between June 2019 and June 2020. Once these projects are constructed the Company is obligated to provide service to the E-Rate program participants. The Company is in various stages of constructing the networks and has not received any of the funds. The Company expects to meet all requirements associated with these grants. The Company also receives funding to provide discounted telecommunication services to eligible customers under the E-Rate, Lifeline, and Rural Health Care Support Programs. During the three and nine months ended September 30, 2018 the Company recorded revenue of $2.0 million and $6.3 million, respectively, in the aggregate from these programs. The Company is subject to certain operational and reporting requirements under the above mentioned programs and it believes that it is in compliance with all of these requirements. Tribal Bidding Credit As part of the broadcast television spectrum incentive auction, the FCC implemented a tribal lands bidding credit to encourage deployment of wireless services utilizing 600 MHz spectrum on the lands of federally recognized tribes. The Company received $7.4 million under this program in the first quarter of 2018. A portion of these funds will be used to offset network capital costs and a portion will be used to offset the costs of supporting the networks. The Company’s current estimate is that it will use $5.4 million to offset capital costs and, consequently, reduce future depreciation expense and $2.0 million to offset the cost of supporting the network which will reduce future operating expense. The credits are subject to certain requirements, including deploying service by January 2021 and meeting minimum coverage metrics. If the requirements are not met the funds may be subject to claw back provisions. The Company currently expects to comply with all applicable requirements related to these funds.

EQUITY

9 Months Ended

Sep. 30, 2018

EQUITY

EQUITY

10. EQUITY

Stockholders’ equity was as follows (in thousands):


	Nine months ended September 30,
	2018						2017
	ATN		Non-Controlling				ATN		Non-Controlling		Total
	International, Inc.		Interests		Total Equity		International, Inc.		Interests		Equity
Equity, beginning of period	$	688,727	$	141,496	$	830,223	$	677,055	$	132,114	$	809,169
Stock-based compensation		5,071		—		5,071		5,415		—		5,415
Comprehensive income:										0
Net income		18,682		10,705		29,387		(12,016)		13,535		1,519
Projected pension benefit obligation		—		—		—		513		—		513
Unrealized (gain) loss on securities		226		—		226		(65)		—		(65)
Reclassifications of gains on sale of marketable securities to net income		—		—		—		(1,044)		—		(1,044)
Foreign Currency translation adjustment		(6,093)		—		(6,093)		921		—		921
Total comprehensive income (loss)		12,815		10,705		23,520		(11,691)		13,535		1,844
Issuance of common stock upon exercise of stock options		571		—		571		1,057		—		1,057
Dividends declared on common stock		(8,116)		—		(8,116)		(13,680)		—		(13,680)
Distributions to non-controlling interests		—		(15,487)		(15,487)		—		(3,761)		(3,761)
Investments made by non-controlling interests		—		—		—		—		123		123
Loss on deconsolidation of subsidiary		—		—		—		—		529		529
Change in accounting method- adoption of ASU 2016-09		—		—		—		110		—		110
Change in accounting method- adoption of ASU 2014-09		1,488		1,147		2,635		—		—		—
Repurchase of non-controlling interests		1,273		(6,469)		(5,196)		(670)		(434)		(1,104)
Purchase of treasury stock		(4,174)		—		(4,174)		(12,968)		—		(12,968)
Equity, end of period	$	697,655	$	131,392	$	829,047	$	644,628	$	142,106	$	786,734

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2018
INCOME TAXES
INCOME TAXES	11. INCOME TAXES The Company’s effective tax rate for the three months ended September 30, 2018 and 2017 was 25.1% and 4.0%, respectively. The effective tax rate for the three months ended September 30, 2018 was primarily impacted by the following items: (i) a $1.5 million increase (net) of unrecognized tax positions recognized discretely, (ii) a $516 thousand benefit (net) to record a return to accrual adjustment recognized discretely, (iii) a $1.4 million benefit (net) to record a valuation allowance release on an indefinite lived intangible asset recognized discretely, and (iv) the mix of income generated among the jurisdictions in which the Company operates along with the exclusion of losses in jurisdictions where the Company cannot benefit from those losses as required by ASC 740-270-30-36(a), primarily in the U.S. Virgin Islands and India. The effective tax rate for the three months ended September 30, 2017 was primarily impacted by the following items: (i) the exclusion of losses in jurisdictions where the Company cannot benefit from those losses as required by ASC 740-270-30-36(a), primarily in the U.S. Virgin Islands, (ii) a $3.4 million benefit for the net capital loss due to the stock sales of its businesses in New England, New York and St. Maarten, (iii) a $3.4 million amended return refund claim filed for tax year 2013 recognized discretely, (iv) a $228 thousand increase (net) in unrecognized tax benefits recognized discretely, (v) a $536 thousand benefit (net) to record a return to accrual adjustment recognized discretely and, (vi) the mix of income generated among the jurisdictions in which the Company operates. The Company’s effective tax rate for the nine months ended September 30, 2018 and 2017 was 30.7% and 76.1%, respectively. The effective tax rate for the nine months ended September 30, 2018 was primarily impacted by the following items: (i) a $2.0 million increase (net) of unrecognized tax positions recognized discretely, (ii) a $585 thousand benefit (net) to record a return to accrual adjustment recognized discretely, (iii) a $514 thousand benefit for the release of a capital loss valuation allowance due to a capital gain on a sale of a wireless license, (iv) a $1.4 million benefit (net) to record a valuation allowance adjustment on an indefinite lived intangible asset recognized discretely, (v) a $695 thousand provision for the intercompany sale of assets from the U.S. to the U.S. Virgin Islands, and (vi) the mix of income generated among the jurisdictions in which the Company operates along with the exclusion of losses in jurisdictions where the Company cannot benefit from those losses as required by ASC 740-270-30-36(a), primarily in the U.S. Virgin Islands and India. The effective tax rate for the nine months ended September 30, 2017 was primarily impacted by the following items: (i) the exclusion of losses in jurisdictions where the Company cannot benefit from those losses as required by ASC 740-270-30-36(a), primarily in the U.S. Virgin Islands, (ii) a $3.4 million benefit for the net capital loss due to the stock sales of its businesses in New England, New York and St. Maarten, (iii) a $3.4 million amended return refund claim filed for tax year 2013 recognized discretely in the third quarter, (iv) a $683 thousand increase (net) in unrecognized tax benefits related to current year and prior year positions recognized discretely in respective quarters, (v) a $367 thousand benefit (net) to record return to accrual adjustments recognized discretely in the respective quarter and, (vi) the mix of income generated among the jurisdictions in which the Company operates. The Company’s effective tax rate is based upon estimated income before provision for income taxes for the year, composition of the income in different countries, and adjustments, if any, in the applicable quarterly periods for potential tax consequences, benefits and/or resolutions of tax contingencies. The Company’s consolidated tax rate will continue to be impacted by any transactional or one-time items in the future and the mix of income in any given year generated among the jurisdictions in which it operates. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the effects and recorded provisional amounts in its consolidated financial statements as of December 31, 2017. In the third quarter of 2018 the Company made adjustments to the provisional amounts, including continued refinements to its deferred taxes of a $0.4 million provision from the $18.0 million benefit recorded at year-end and a $2.5 million provision on the deemed repatriation of undistributed foreign earnings in addition to the $7.4 million provision recorded at year-end. The Company continues to collect and prepare necessary data, and interpret the Tax Act and any additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service (“IRS”), and other standard-setting bodies. The accounting for the tax effects of the Tax Act will be completed by the end of 2018. While the Company believes it has adequately provided for all tax positions, amounts asserted by taxing authorities could materially differ from its accrued positions as a result of uncertain and complex application of tax law and regulations. Additionally, the recognition and measurement of certain tax benefits include estimates and judgment by management. Accordingly, the Company could record additional provisions or benefits for U.S. federal, state, and foreign tax matters in future periods as new information becomes available.

NET INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2018

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE

12. NET INCOME (LOSS) PER SHARE

For the three and nine months ended September 30, 2018 and 2017, outstanding stock options were the only potentially dilutive securities. The reconciliation from basic to diluted weighted average shares of common stock outstanding is as follows (in thousands):


	Three months ended September 30,		Nine months ended September 30,
	2018	2017	2018	2017
Basic weighted-average shares of common stock outstanding	15,958	16,178	15,987	16,177
Stock options	63	—	55	—
Diluted weighted-average shares of common stock outstanding	16,021	16,178	16,042	16,177

SEGMENT REPORTING

9 Months Ended

Sep. 30, 2018

SEGMENT REPORTING

SEGMENT REPORTING

13. SEGMENT REPORTING

The Company has the following three reportable and operating segments: i) U.S. Telecom, ii) International Telecom, and iii) Renewable Energy.

The following tables provide information for each operating segment (in thousands):


For the Three Months Ended September 30, 2018

	U.S.		International		Renewable		Corporate and
	Telecom		Telecom		Energy		Other (1)		Consolidated
Revenue
Wireless	$	29,784	$	22,219	$	—	$	—	$	52,003
Wireline		2,024		61,693		—		—		63,717
Renewable Energy		—		—		5,418		—		5,418
Total Revenue		31,808		83,912		5,418		—		121,138
Depreciation and amortization		5,665		12,441		1,819		1,459		21,384
Non-cash stock-based compensation		—		20		29		1,344		1,393
Operating income (loss)		22,774		16,239		(177)		(8,012)		30,824


For the Three Months Ended September 30, 2017

	U.S.		International		Renewable		Corporate and
	Telecom		Telecom		Energy		Other (1)		Consolidated
Revenue
Wireless	$	37,774	$	22,531	$	—	$	—	$	60,305
Wireline		2,336		54,481		—		—		56,817
Renewable Energy		—		—		5,010		—		5,010
Total Revenue		40,110		77,012		5,010		—		122,132
Depreciation and amortization		6,301		12,088		1,656		1,112		21,157
Non-cash stock-based compensation		—		8		29		1,621		1,658
Operating income (loss)		15,987		(28,531)		976		(7,997)		(19,565)


For the Nine Months Ended September 30, 2018

	U.S.		International		Renewable		Corporate and
	Telecom		Telecom		Energy		Other (1)		Consolidated
Revenue
Wireless	$	85,767	$	67,279	$	—	$	—	$	153,046
Wireline		4,824		168,259		—		—		173,083
Renewable Energy		—		—		17,272		—		17,272
Total Revenue		90,591		235,538		17,272		—		343,401
Depreciation and amortization		19,013		35,907		5,492		4,190		64,602
Non-cash stock-based compensation		—		68		86		4,917		5,071
Operating income (loss)		35,839		37,450		3,687		(26,190)		50,786


For the Nine Months Ended September 30, 2017

	U.S.		International		Renewable		Corporate and
	Telecom		Telecom		Energy		Other (1)		Consolidated
Revenue
Wireless	$	110,398	$	65,379	$	—	$	—	$	175,777
Wireline		10,483		172,294		—		—		182,777
Renewable Energy		—		—		14,938		—		14,938
Total Revenue		120,881		237,673		14,938		—		373,492
Depreciation and amortization		19,098		38,339		4,941		3,526		65,904
Non-cash stock-based compensation		—		146		86		5,205		5,437
Operating income (loss)		44,520		(7,832)		3,263		(25,953)		13,998

(1)

Corporate and Other items refer to corporate overhead costs and consolidating adjustments

Selected balance sheet data for each of the Company’s segments as of September 30, 2018 and December 31, 2017 consists of the following (in thousands):



	U.S.		International		Renewable		Corporate and
	Telecom		Telecom		Energy		Other (1)		Consolidated
September 30, 2018
Cash, Cash equivalents, and Investments	$	25,202	$	50,753	$	12,085	$	73,386	$	161,426
Assets held for sale		—		—		97,477		—		97,477
Total current assets		48,003		99,624		121,070		80,600		349,297
Fixed assets, net		80,088		473,086		41,716		19,537		614,427
Goodwill		35,269		25,421		3,280		—		63,970
Total assets		187,831		640,123		178,663		177,433		1,184,050
Liabilities held for sale		—		—		80,673		—		80,673
Total current liabilities		23,825		84,310		84,659		22,532		215,326
Total debt		—		91,871		—		—		91,871
December 31, 2017
Cash, Cash equivalents, and Investments	$	19,585	$	110,700	$	8,120	$	76,627	$	215,032
Total current assets		40,975		190,396		18,060		93,497		342,928
Fixed assets, net		99,462		367,485		158,447		17,752		643,146
Goodwill		35,269		25,421		3,280		—		63,970
Total assets		200,142		629,007		192,406		184,050		1,205,605
Total current liabilities		41,248		91,887		14,754		13,816		161,705
Total debt		—		94,577		61,215		—		155,792


		Capital Expenditures

		U.S.		International			Renewable		Corporate and
Nine months ended September 30,		Telecom		Telecom			Energy		Other (1)		Consolidated
2018	$	9,461	$	136,790	(2)	$	1,642	$	6,385	$	154,278
2017		17,396		54,775			31,327		4,778		108,276

(1)

Corporate and other items refer to corporate overhead costs and consolidating adjustments

(2)

Includes $78.9 million of expenditures used to rebuild the Company’s damaged networks in the U.S. Virgin Islands which was impacted by the Hurricanes. These expenditures were financed, in part, by the $34.6 million of insurance proceeds the Company received during the first quarter of 2018.

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2018
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	14. COMMITMENTS AND CONTINGENCIES Regulatory and Litigation Matters The Company and its subsidiaries are subject to certain regulatory and legal proceedings and other claims arising in the ordinary course of business, some of which involve claims for damages and taxes that are substantial in amount. The Company believes that, except for the items discussed below, for which the Company is currently unable to predict the final outcome, the disposition of proceedings currently pending will not have a material adverse effect on the Company’s financial position or results of operations. The Company’s Guyana subsidiary, GTT, holds a license to provide domestic fixed services and international voice and data services in Guyana on an exclusive basis until December 2030. Since 2001, the Government of Guyana has stated its intention to introduce additional competition into Guyana’s telecommunications sector. In connection therewith, the Company and GTT have met on several occasions with officials of the Government of Guyana to discuss potential modifications of GTT’s exclusivity and other rights under the existing agreement and license. On July 18, 2016, the Guyana Parliament passed telecommunications legislation, and on August 5, 2016, the legislation was signed into law that introduces material changes to many features of Guyana’s existing telecommunications regulatory regime with the intention of creating a more competitive market. The legislation does not have the effect of terminating the Company’s exclusive license. Instead the legislation as passed requires the Minister of Telecommunications to conduct further proceedings and issue implementing orders to enact the various provisions of the legislation, including the issuance of competing licenses. The Company cannot predict the manner in which or when the legislation will be implemented by the Minister of Telecommunications. In January 2018 the Government of Guyana and the Company met to discuss modifications of the Company’s exclusivity rights and other rights under its existing agreement and license. Those discussions are on-going, however, there can be no assurance that those discussions will be concluded before the Government issues new licenses contemplated by the legislation or at all, or that such discussions will satisfactorily address the Company’s contractual exclusivity rights. Although the Company believes that it would be entitled to damages or other compensation for any involuntary termination of its contractual exclusivity rights, it cannot guarantee that the Company would prevail in a proceeding to enforce its rights or that its actions would effectively halt any unilateral action by the Government. Historically, GTT has been subject to other litigation proceedings and disputes in Guyana that, while not conclusively resolved, to the Company’s knowledge have not been the subject of discussions or other significant activity in the last five years. It is possible, but the Company believes unlikely, that these disputes, as discussed below, may be revived. The Company believes that none of these additional proceedings would, in the event of an adverse outcome, have a material impact on the Company’s consolidated financial position, results of operation or liquidity. In a letter dated September 8, 2006, the National Frequency Management Unit (“NFMU”) agreed that total spectrum fees in Guyana should not increase for the years 2006 and 2007. However, that letter implied that spectrum fees in 2008 and onward may be increased beyond the amount GTT agreed to with the Government. GTT has objected to the NFMU’s proposed action and reiterated its position that an increase in fees prior to development of an acceptable methodology would violate the Government’s prior agreement. In 2011, GTT paid the NFMU $2.6 million representing payments in full for 2008, 2009 and 2010. However, by letter dated November 23, 2011, the NFMU stated that it did not concur with GTT’s inference that the amount was payment in full for the specified years as it was NFMU’s continued opinion that the final calculation for spectrum fees was not agreed upon and was still an outstanding issue. By further letter dated November 24, 2011, the NFMU further rejected a proposal that was previously submitted jointly by GTT and another communications provider that outlined a recommended methodology for the calculation of these fees. The NFMU stated that it would prepare its own recommendation for consideration by the Minister of Telecommunications, who would decide the matter. GTT has paid undisputed spectrum fees according to the methodology used for its 2011 payments, and has reserved amounts payable according to this methodology. There have been limited further discussions on this subject and GTT has not had the opportunity to review any recommendation made by the NFMU to the Minister. In November 2007, Caribbean Telecommunications Limited (“CTL”) filed a complaint in the U.S. District Court for the District of New Jersey against GTT and ATN claiming breach of an interconnection agreement for domestic cellular services in Guyana and related claims. CTL asserted over $200 million in damages. GTT and ATN moved to dismiss the complaint on procedural and jurisdictional grounds. On January 26, 2009, the court granted the motions to dismiss the complaint on the grounds asserted. In November 2009 and again in April 2013, CTL filed and then abandoned a similar claim against GTT and the Public Utility Commission in the High Court of Guyana. CTL once more filed a similar claim against the Company in December 2017, seeking damages of $25 million; however, this matter was dismissed in May 2018. CTL made an untimely filing for an appeal thereafter, which the court subsequently denied. On May 8, 2009, a GTT competitor, Digicel, filed a lawsuit in Guyana challenging the legality of GTT’s exclusive license rights under Guyana’s constitution. Digicel initially filed this lawsuit against the Attorney General of Guyana on May 13, 2009, GTT petitioned to intervene in the suit in order to oppose Digicel’s claims and GTT’s petition was granted on May 18, 2009. GTT filed an answer to the charge on June 22, 2009. The case remains pending. The Company believes that any legal challenge to GTT’s exclusive license rights granted in 1990 is without merit and the Company intends to defend vigorously against such legal challenge. GTT has filed several lawsuits in the High Court of Guyana asserting that, despite its denials, Digicel is engaged in international bypass in violation of GTT’s exclusive license rights, the interconnection agreement between the parties, and the laws of Guyana. GTT is seeking injunctive relief to stop the illegal bypass activity and money damages. Digicel filed counterclaims alleging that GTT has violated the terms of the interconnection agreement and Guyana laws. These suits, filed in 2010 and 2012, have been consolidated with Digicel’s constitutional challenge described above and is scheduled to proceed to trial in the second quarter of 2019. GTT intends to prosecute these matters vigorously. GTT is also involved in several legal claims regarding its tax filings with the Guyana Revenue Authority dating back to 1991 regarding the deductibility of intercompany advisory fees as well as other tax assessments. The Company maintains that any liability GTT might be found to have with respect to the disputed tax assessments, totaling $44.1 million, would be offset in part by the amounts necessary to ensure that GTT’s return on investment was no less than 15% per annum for the relevant periods. The Company believes that some adverse outcome is probable and has accordingly accrued $5.0 million as of September 30, 2018 for these matters.

PLATFORM INVESTMENTS	9 Months Ended
PLATFORM INVESTMENTS	Sep. 30, 2018
PLATFORM INVESTMENTS
PLATFORM INVESTMENTS	15. PLATFORM INVESTMENTS During the third quarter of 2017, the Company completed its investment in a managed services and technology business based in Bermuda. During the second quarter of 2018, the Company established a new platform, based in the United States, to develop in-building wireless network technology that enables building owners to capitalize on the growing demand for better indoor wireless solutions. Also during the second quarter of 2018, the Company established a new platform, based in the United States, to further develop large scale fiber networks to serve the telecommunications and content provider industries with network infrastructure to develop network solutions.

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2018
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	16. SUBSEQUENT EVENTS On November 6, 2018, the Company completed the sale of its U.S. solar business that owns and manages distributed generation solar power projects operated under the Ahana name in Massachusetts, California and New Jersey to CleanCapital Holdco 4, LLC. The transaction has a total value of approximately $122.6 million, which includes a cash purchase price of $65.4 million and the assumption of approximately $57.2 million in debt, and is subject to certain other post-closing adjustments. Approximately $6.5 million of the purchase price will be held in escrow for a period of twelve months after the closing to secure the Company’s indemnification obligation and the Company expects to record a gain between $10 million and $15 million during the fourth quarter of 2018.

BASIS OF PRESENTATION (Policies)

9 Months Ended

Sep. 30, 2018

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Recent Accounting Pronouncements


Statement of Cash flows - Nine months ended September 30, 2017

		Reported		Change		Under previous guidance
Net cash provided by operating activities	$	121,988	$	—	$	121,988
Net cash used in investing activities		(139,256)		420		(138,836)
Net cash used in financing activities		(29,654)		1,178		(28,476)
Effect of foreign currency exchange rates on total cash		200		—		200
Net change in total cash	$	(46,722)	$	1,598	$	(45,124)
Total cash, beginning of period		288,358		(18,637)		269,721
Total cash, end of period	$	241,636	$	(17,039)	$	224,597

ORGANIZATION AND BUSINESS OPERATIONS (Tables)

9 Months Ended

Sep. 30, 2018

ORGANIZATION AND BUSINESS OPERATIONS

Schedule of the operating activities of the Company's principal subsidiaries, the segments in which the Company reports its revenue and markets served


Segment	Services	Markets	Tradenames
U.S. Telecom	Wireless	United States (rural markets)	Commnet, Choice, Choice NTUA Wireless, WestNet, Geoverse
	Wireline	United States	Essextel, Deploycom
International Telecom	Wireline	Bermuda, Guyana, U.S. Virgin Islands, Cayman Islands	One, GTT+, Viya, Logic, Fireminds
	Wireless	Bermuda, Guyana, U.S. Virgin Islands	One, GTT+, Viya
	Video Services	Bermuda, U.S. Virgin Islands, Cayman Islands	One, Viya, Logic
Renewable Energy	Solar	United States (Massachusetts, California, and New Jersey), India	Ahana Renewables, Vibrant Energy

BASIS OF PRESENTATION (Tables)

9 Months Ended

Sep. 30, 2018

ASU 2016-18

Recent accounting pronouncements

Summary of changes to the Company’s financial statements as a result of the adoption

This change impacted the Company’s cash flows for the nine months ended September 30, 2017 as indicated below (amounts in thousands):


Statement of Cash flows - Nine months ended September 30, 2017

		Reported		Change		Under previous guidance
Net cash provided by operating activities	$	121,988	$	—	$	121,988
Net cash used in investing activities		(139,256)		420		(138,836)
Net cash used in financing activities		(29,654)		1,178		(28,476)
Effect of foreign currency exchange rates on total cash		200		—		200
Net change in total cash	$	(46,722)	$	1,598	$	(45,124)
Total cash, beginning of period		288,358		(18,637)		269,721
Total cash, end of period	$	241,636	$	(17,039)	$	224,597

REVENUE RECOGNITION (Tables)

9 Months Ended

Sep. 30, 2018

Revenue Recognition

Summary of contracts asset and liabilities

Contract assets and liabilities consisted of the following (amounts in thousands):


		September 30, 2018		June 30, 2018		$ Change	% Change
Contract asset – current	$	1,577	$	1,434	$	143	10%
Contract asset – noncurrent		603		568		35	6%
Contract liabilities		(10,867)		(9,552)		(1,315)	14%
Net contract liability	$	(8,687)	$	(7,550)	$	(1,137)	15%

ASU 2014-09

Revenue Recognition

Summary of changes to the Company’s financial statements as a result of the adoption of ASC 606

The tables below identify changes to the Company’s financial statements as of September 30, 2018 and for the three and nine months then ended as a result of the adoption of ASC 606 as compared to previous revenue guidance (amounts in thousands):


Balance Sheet - September 30, 2018
		Reported		Change		Under previous guidance
Prepayments and other current assets	$	37,239	$	(3,115)	$	34,124

Total current assets	$	349,297	$	(3,115)	$	346,182

Other assets	$	38,773	$	(1,290)	$	37,483

Total assets	$	1,184,050	$	(4,405)	$	1,179,645

Advance payments and deposits	$	18,076	$	(332)	$	17,744
Accrued taxes		12,789		(73)		12,716

Total current liabilities	$	215,326	$	(405)	$	214,921

Deferred income taxes	$	7,614	$	(302)	$	7,312

Total liabilities	$	355,003	$	(707)	$	354,296

Retained earnings	$	565,180	$	(2,107)	$	563,073
Minority interest	$	131,392	$	(1,591)	$	129,801

Total equity	$	829,047	$	(3,698)	$	825,349

Total liabilities and equity	$	1,184,050	$	(4,405)	$	1,179,645


		Statement of Operations

		Three months ended September 30, 2018						Nine months ended September 30, 2018

		Reported		Change		Under previous guidance		Reported		Change		Under previous guidance
Wireless revenue	$	52,003	$	(177)	$	51,826	$	153,046	$	(514)	$	152,532

Total revenue	$	121,138	$	(177)	$	120,961	$	343,401	$	(514)	$	342,887

Sales, marketing and customer service	$	8,995	$	4	$	8,999	$	25,969	$	622	$	26,591

Total operating expenses	$	90,314	$	4	$	90,318	$	292,615	$	622	$	293,237

Income from operations	$	30,824	$	(181)	$	30,643	$	50,786	$	(1,136)	$	49,650
Income before taxes		27,919		(181)		27,738		42,405		(1,136)		41,269
Income tax provision		7,010		69		7,079		13,018		(73)		12,945

Net income	$	20,909	$	(250)	$	20,659	$	29,387	$	(1,063)	$	28,324
Net income attributable to non-controlling interests		(3,887)		109		(3,778)		(10,705)		444		(10,261)
Net income attributable to ATN International, Inc. stockholders	$	17,022	$	(141)	$	16,881	$	18,682	$	(619)	$	18,063


		Statement of Comprehensive Loss

		Three months ended September 30, 2018						Nine months ended September 30, 2018

		Reported		Change		Under previous guidance		Reported		Change		Under previous guidance
Net income	$	20,909	$	(250)	$	20,659	$	29,387	$	(1,063)	$	28,324
Other comprehensive loss, net of tax		(2,465)		-		(2,465)		(5,867)		-		(5,867)
Comprehensive loss		18,444		(250)		18,194		23,520		(1,063)		22,457
Less: Comprehensive income attributable to non-controlling interests		(3,887)		109		(3,778)		(10,705)		444		(10,261)
Comprehensive income (loss) attributable to ATN International, Inc.	$	14,557	$	(141)	$	14,416	$	12,815	$	(619)	$	12,196


Statement of Cash Flows - Nine months ended September 30, 2018

		Reported		Change (1)		Under previous guidance
Net income	$	29,387	$	(1,063)	$	28,324

Materials and supplies, prepayments and other current assets	$	(715)	$	1,039	$	324
Accrued taxes		7,410		(73)		7,337
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities		6,926		(102)		6,824
Other assets	$	139	$	199	$	338

(1)

The adoption of ASC 606 had no impact on operating cash flows, investing cash flows, financing cash flows or net change in total cash.

DISPOSITIONS (Tables)

9 Months Ended

Sep. 30, 2018

Sovernet

Schedule of assets and liabilities transferred

The table below identifies the assets and liabilities transferred (amounts in thousands):


Consideration Received	$	25,926

Assets and liabilities disposed
Cash		1,821
Accounts receivable		1,696
Inventory		639
Prepayments and other current assets		1,034
Property, plant and equipment		25,294
Other assets		288
Accounts payable and accrued liabilities		(1,718)
Advance payments and deposits		(1,897)
Net assets disposed		27,157

Consideration less net assets disposed		(1,231)

Transaction costs		(1,156)

Loss	$	(2,387)

U.S. Solar Operations

Schedule of assets and liabilities transferred


Assets and Liabilities Held for Sale
Accounts receivable	$	1,599
Prepayments and other current assets		783
Property, plant and equipment		113,569
Accumulated depreciation		(18,474)
Current assets held for sale	$	97,477

Accounts payable	$	1,742
Taxes payable		(586)
Current portion of long-term debt		10,126
Long-term debt, excluding current portion		48,034
Deferred income taxes		21,357
Current liabilities held for sale	$	80,673

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=84176398&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2018

FAIR VALUE MEASUREMENTS

Schedule of assets and liabilities of the entity measured at fair value on a recurring basis

Assets and liabilities of the Company measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 are summarized as follows (in thousands):


			September 30, 2018
			Significant Other
	Quoted Prices in		Observable
	Active Markets		Inputs
Description	(Level 1)		(Level 2)		Total
Certificates of deposit	$	—	$	380	$	380
Money market funds		2,399		—		2,399
Short term investments		314		—		314
Commercial paper		—		23,977		23,977
Interest rate swap		—		277		277
Total assets and liabilities measured at fair value	$	2,713	$	24,634	$	27,347


	December 31, 2017
			Significant Other
	Quoted Prices in		Observable
	Active Markets		Inputs
Description	(Level 1)		(Level 2)		Total
Certificates of deposit	$	—	$	391	$	391
Money market funds		2,894		—		2,894
Short term investments		555		6,521		7,076
Commercial paper		—		49,954		49,954
Interest rate swap		—		52		52
Total assets and liabilities measured at fair value	$	3,449	$	56,918	$	60,367

EQUITY (Tables)

9 Months Ended

Sep. 30, 2018

EQUITY

Schedule of stockholders' equity

Stockholders’ equity was as follows (in thousands):


	Nine months ended September 30,
	2018						2017
	ATN		Non-Controlling				ATN		Non-Controlling		Total
	International, Inc.		Interests		Total Equity		International, Inc.		Interests		Equity
Equity, beginning of period	$	688,727	$	141,496	$	830,223	$	677,055	$	132,114	$	809,169
Stock-based compensation		5,071		—		5,071		5,415		—		5,415
Comprehensive income:										0
Net income		18,682		10,705		29,387		(12,016)		13,535		1,519
Projected pension benefit obligation		—		—		—		513		—		513
Unrealized (gain) loss on securities		226		—		226		(65)		—		(65)
Reclassifications of gains on sale of marketable securities to net income		—		—		—		(1,044)		—		(1,044)
Foreign Currency translation adjustment		(6,093)		—		(6,093)		921		—		921
Total comprehensive income (loss)		12,815		10,705		23,520		(11,691)		13,535		1,844
Issuance of common stock upon exercise of stock options		571		—		571		1,057		—		1,057
Dividends declared on common stock		(8,116)		—		(8,116)		(13,680)		—		(13,680)
Distributions to non-controlling interests		—		(15,487)		(15,487)		—		(3,761)		(3,761)
Investments made by non-controlling interests		—		—		—		—		123		123
Loss on deconsolidation of subsidiary		—		—		—		—		529		529
Change in accounting method- adoption of ASU 2016-09		—		—		—		110		—		110
Change in accounting method- adoption of ASU 2014-09		1,488		1,147		2,635		—		—		—
Repurchase of non-controlling interests		1,273		(6,469)		(5,196)		(670)		(434)		(1,104)
Purchase of treasury stock		(4,174)		—		(4,174)		(12,968)		—		(12,968)
Equity, end of period	$	697,655	$	131,392	$	829,047	$	644,628	$	142,106	$	786,734

NET INCOME (LOSS) PER SHARE (Tables)

9 Months Ended

Sep. 30, 2018

NET INCOME (LOSS) PER SHARE

Schedule of reconciliation from basic to diluted weighted average common shares outstanding

The reconciliation from basic to diluted weighted average shares of common stock outstanding is as follows (in thousands):


	Three months ended September 30,		Nine months ended September 30,
	2018	2017	2018	2017
Basic weighted-average shares of common stock outstanding	15,958	16,178	15,987	16,177
Stock options	63	—	55	—
Diluted weighted-average shares of common stock outstanding	16,021	16,178	16,042	16,177

SEGMENT REPORTING (Tables)

9 Months Ended

Sep. 30, 2018

SEGMENT REPORTING

Schedule of information for each operating segment

The following tables provide information for each operating segment (in thousands):


For the Three Months Ended September 30, 2018

	U.S.		International		Renewable		Corporate and
	Telecom		Telecom		Energy		Other (1)		Consolidated
Revenue
Wireless	$	29,784	$	22,219	$	—	$	—	$	52,003
Wireline		2,024		61,693		—		—		63,717
Renewable Energy		—		—		5,418		—		5,418
Total Revenue		31,808		83,912		5,418		—		121,138
Depreciation and amortization		5,665		12,441		1,819		1,459		21,384
Non-cash stock-based compensation		—		20		29		1,344		1,393
Operating income (loss)		22,774		16,239		(177)		(8,012)		30,824


For the Three Months Ended September 30, 2017

	U.S.		International		Renewable		Corporate and
	Telecom		Telecom		Energy		Other (1)		Consolidated
Revenue
Wireless	$	37,774	$	22,531	$	—	$	—	$	60,305
Wireline		2,336		54,481		—		—		56,817
Renewable Energy		—		—		5,010		—		5,010
Total Revenue		40,110		77,012		5,010		—		122,132
Depreciation and amortization		6,301		12,088		1,656		1,112		21,157
Non-cash stock-based compensation		—		8		29		1,621		1,658
Operating income (loss)		15,987		(28,531)		976		(7,997)		(19,565)


For the Nine Months Ended September 30, 2018

	U.S.		International		Renewable		Corporate and
	Telecom		Telecom		Energy		Other (1)		Consolidated
Revenue
Wireless	$	85,767	$	67,279	$	—	$	—	$	153,046
Wireline		4,824		168,259		—		—		173,083
Renewable Energy		—		—		17,272		—		17,272
Total Revenue		90,591		235,538		17,272		—		343,401
Depreciation and amortization		19,013		35,907		5,492		4,190		64,602
Non-cash stock-based compensation		—		68		86		4,917		5,071
Operating income (loss)		35,839		37,450		3,687		(26,190)		50,786


For the Nine Months Ended September 30, 2017

	U.S.		International		Renewable		Corporate and
	Telecom		Telecom		Energy		Other (1)		Consolidated
Revenue
Wireless	$	110,398	$	65,379	$	—	$	—	$	175,777
Wireline		10,483		172,294		—		—		182,777
Renewable Energy		—		—		14,938		—		14,938
Total Revenue		120,881		237,673		14,938		—		373,492
Depreciation and amortization		19,098		38,339		4,941		3,526		65,904
Non-cash stock-based compensation		—		146		86		5,205		5,437
Operating income (loss)		44,520		(7,832)		3,263		(25,953)		13,998

(1)

Corporate and Other items refer to corporate overhead costs and consolidating adjustments

Schedule of selected balance sheet data for each segment

Selected balance sheet data for each of the Company’s segments as of September 30, 2018 and December 31, 2017 consists of the following (in thousands):



	U.S.		International		Renewable		Corporate and
	Telecom		Telecom		Energy		Other (1)		Consolidated
September 30, 2018
Cash, Cash equivalents, and Investments	$	25,202	$	50,753	$	12,085	$	73,386	$	161,426
Assets held for sale		—		—		97,477		—		97,477
Total current assets		48,003		99,624		121,070		80,600		349,297
Fixed assets, net		80,088		473,086		41,716		19,537		614,427
Goodwill		35,269		25,421		3,280		—		63,970
Total assets		187,831		640,123		178,663		177,433		1,184,050
Liabilities held for sale		—		—		80,673		—		80,673
Total current liabilities		23,825		84,310		84,659		22,532		215,326
Total debt		—		91,871		—		—		91,871
December 31, 2017
Cash, Cash equivalents, and Investments	$	19,585	$	110,700	$	8,120	$	76,627	$	215,032
Total current assets		40,975		190,396		18,060		93,497		342,928
Fixed assets, net		99,462		367,485		158,447		17,752		643,146
Goodwill		35,269		25,421		3,280		—		63,970
Total assets		200,142		629,007		192,406		184,050		1,205,605
Total current liabilities		41,248		91,887		14,754		13,816		161,705
Total debt		—		94,577		61,215		—		155,792

Schedule of segment capital expenditures

		Capital Expenditures

		U.S.		International			Renewable		Corporate and
Nine months ended September 30,		Telecom		Telecom			Energy		Other (1)		Consolidated
2018	$	9,461	$	136,790	(2)	$	1,642	$	6,385	$	154,278
2017		17,396		54,775			31,327		4,778		108,276

(1)

Corporate and other items refer to corporate overhead costs and consolidating adjustments

(2)

BASIS OF PRESENTATION - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018	Dec. 31, 2017	Jan. 01, 2017
Recent accounting pronouncements
Equity investments with readily determinable fair values	$ 400		$ 400
Additional paid-in capital	174,914		174,914			$ 167,973
Accumulated other comprehensive income	(2,324)		(2,324)			3,746
Retained earnings	565,180		565,180			552,948
Net cash provided by operating activities			98,014	$ 121,988
Net cash used in investing activities			(105,652)	(139,256)
Net cash used in financing activities			(37,948)	(29,654)
Effect of foreign currency exchange rates on total cash			(353)	200
Net change in cash, cash equivalents, and restricted cash			(45,939)	(46,722)
Total cash, cash equivalents, and restricted cash, beginning of period			219,890	288,358
Total cash, cash equivalents, and restricted cash, end of period	173,951	$ 241,636	173,951	241,636
Operating Expenses	90,314	141,697	292,615	359,494
Operating income (loss)	$ 30,824	(19,565)	$ 50,786	13,998
ASU 2016-01
Recent accounting pronouncements
Equity investments that do not have readily determinable fair values					$ 20,100
Equity investments with readily determinable fair values					600
Adjustment \| ASU 2016-01
Recent accounting pronouncements
Accumulated other comprehensive income					(200)
Retained earnings					$ 200
Adjustment \| ASU 2016-09
Recent accounting pronouncements
Additional paid-in capital							$ (300)
Retained earnings							$ 300
Adjustment \| ASU 2018-02 \| Early Adoption
Recent accounting pronouncements
Accumulated other comprehensive income						(800)
Retained earnings						800
Valuation allowance						$ 800
Change \| ASU 2016-18
Recent accounting pronouncements
Net cash used in investing activities				(420)
Net cash used in financing activities				(1,178)
Net change in cash, cash equivalents, and restricted cash				(1,598)
Total cash, cash equivalents, and restricted cash, beginning of period				18,637
Total cash, cash equivalents, and restricted cash, end of period		17,039		17,039
Change \| ASU 2017-07
Recent accounting pronouncements
Operating Expenses		40		120
Other Income		(40)		(120)
Under previous guidance \| ASU 2016-18
Recent accounting pronouncements
Net cash provided by operating activities				121,988
Net cash used in investing activities				(138,836)
Net cash used in financing activities				(28,476)
Effect of foreign currency exchange rates on total cash				200
Net change in cash, cash equivalents, and restricted cash				(45,124)
Total cash, cash equivalents, and restricted cash, beginning of period				269,721
Total cash, cash equivalents, and restricted cash, end of period		$ 224,597		$ 224,597

Revenue Recognition - Renewable Energy (Details)	9 Months Ended
Revenue Recognition - Renewable Energy (Details)	Sep. 30, 2018
Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Term of power purchase agreements with various customers (in years)	10 years
Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Term of power purchase agreements with various customers (in years)	25 years

Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Jun. 30, 2018
Contract Assets and Liabilities
Contract asset, current	$ 1,577	$ 1,434
Change in contract asset - current	$ 143
% of change in contract asset - current	10.00%
Contract asset, noncurrent	$ 603	568
Change in contract Asset – noncurrent	$ 35
% of change in contract Asset – noncurrent	6.00%
Contract liabilities	$ (10,867)	(9,552)
Change in contract liabilities	$ (1,315)
% of change in contract liabilities	14.00%
Net contract liability	$ (8,687)	$ (7,550)
Change in net contract liability	$ (1,137)
% of change in net contract liability	15.00%
Revenue recognized related to contract liability	$ 6,900
Amortization of contract assets	500
Revenue recognized in the period related to performance obligations that were satisfied or partially satisfied in previous periods	$ 0

Revenue Recognition - Contract Acquisition Costs (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2018 USD ($)
Contract Acquisition Costs
Expected amortization period, when the Company utilizes the practical expedient and expenses the costs as incurred		true
Amortization of contract acquisition cost	$ 0.6	$ 1.2
Prepayments and other current assets
Contract Acquisition Costs
Current contract acquisition costs	1.5	1.5
Other assets
Contract Acquisition Costs
Long term contract acquisition costs	$ 0.7	$ 0.7
Minimum
Contract Acquisition Costs
Amortization period		2 years
Maximum
Contract Acquisition Costs
Amortization period		6 years

Revenue Recognition - Remaining Performance Obligations - (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-09-30 $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($)
Revenue Recognition
Transaction price allocated to unsatisfied performance obligations	$ 10.7
Period to satisfy the remaining performance obligations and recognize the transaction price	24 months
Right to invoice and wholly unsatisfied performance obligation practical expedients	true

Revenue Recognition - Impacts of adoption in the current period - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Contracts
Contract asset, current	$ 1,577	$ 1,434
Contract asset, noncurrent	603	568
Contract liability	10,867	$ 9,552
Deferred income taxes	7,614			$ 31,732
Retained earnings	565,180			552,948
Minority interest	131,392			$ 141,496
Prepayments and other current assets
Contracts
Contract acquisition costs, current	1,500
Other assets
Contracts
Contract acquisition costs, noncurrent	700
Change \| ASU 2014-09
Contracts
Contract asset			$ 1,600
Contract acquisition costs			1,500
Deferred income taxes	302		300
Retained earnings	2,107		1,500
Minority interest	$ 1,591		1,100
Change \| ASU 2014-09 \| Prepayments and other current assets
Contracts
Contract asset, current			1,200
Contract acquisition costs, current			900
Change \| ASU 2014-09 \| Other assets
Contracts
Contract asset, noncurrent			400
Retained earnings			600
Change \| ASU 2014-09 \| Advance Payments And Deposits
Contracts
Contract liability			$ 200

Revenue Recognition - Impacts of adoption in the current period - BS (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Prepayments and other current assets	$ 37,239		$ 68,136
Total current assets	349,297		342,928
Other assets	38,773		36,774
Total assets	1,184,050		1,205,605
Advance payments and deposits	18,076		25,178
Accrued taxes	12,789		6,751
Total current liabilities	215,326		161,705
Deferred tax liability	7,614		31,732
Total liabilities	355,003		375,382
Retained earnings	565,180		552,948
Minority interest	131,392		141,496
Total Equity	829,047		830,223	$ 786,734	$ 809,169
Total liabilities and equity	1,184,050		$ 1,205,605
ASU 2014-09 \| Change
CONDENSED CONSOLIDATED BALANCE SHEETS
Prepayments and other current assets	3,115
Total current assets	3,115
Other assets	1,290
Total assets	4,405
Advance payments and deposits	332
Accrued taxes	73
Total current liabilities	405
Deferred tax liability	302	$ 300
Total liabilities	707
Retained earnings	2,107	1,500
Minority interest	1,591	$ 1,100
Total Equity	3,698
Total liabilities and equity	4,405
ASU 2014-09 \| Under previous guidance
CONDENSED CONSOLIDATED BALANCE SHEETS
Prepayments and other current assets	34,124
Total current assets	346,182
Other assets	37,483
Total assets	1,179,645
Advance payments and deposits	17,744
Accrued taxes	12,716
Total current liabilities	214,921
Deferred tax liability	7,312
Total liabilities	354,296
Retained earnings	563,073
Minority interest	129,801
Total Equity	825,349
Total liabilities and equity	$ 1,179,645

Revenue Recognition - Impacts of adoption in the current period - IS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 121,138		$ 343,401
Sales, marketing and customer service	8,995	$ 8,440	25,969	$ 26,176
Total operating expenses	90,314	141,697	292,615	359,494
Income from operations	30,824	(19,565)	50,786	13,998
Income before taxes	27,919	(21,860)	42,405	6,358
Income tax provisions (benefit)	7,010	(884)	13,018	4,839
Net income (loss)	20,909	(20,976)	29,387	1,519
Net income attributable to non-controlling interests	(3,887)	(3,784)	(10,705)	(13,535)
Net income attributable to ATN International, Inc. stockholders	17,022	$ (24,760)	18,682	$ (12,016)
ASU 2014-09 \| Change
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	177		514
Sales, marketing and customer service	(4)		(622)
Total operating expenses	(4)		(622)
Income from operations	181		1,136
Income before taxes	181		1,136
Income tax provisions (benefit)	(69)		73
Net income (loss)	250		1,063
Net income attributable to non-controlling interests	(109)		(444)
Net income attributable to ATN International, Inc. stockholders	141		619
ASU 2014-09 \| Under previous guidance
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	120,961		342,887
Sales, marketing and customer service	8,999		26,591
Total operating expenses	90,318		293,237
Income from operations	30,643		49,650
Income before taxes	27,738		41,269
Income tax provisions (benefit)	7,079		12,945
Net income (loss)	20,659		28,324
Net income attributable to non-controlling interests	(3,778)		(10,261)
Net income attributable to ATN International, Inc. stockholders	16,881		18,063
Wireless
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	52,003		153,046
Wireless \| ASU 2014-09 \| Change
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	177		514
Wireless \| ASU 2014-09 \| Under previous guidance
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 51,826		$ 152,532

Revenue Recognition - Impacts of adoption in the current period - CIS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 20,909	$ (20,976)	$ 29,387	$ 1,519
Other comprehensive loss, net of tax	(2,465)	(1,244)	(5,867)	325
Comprehensive income (loss)	18,444	(22,220)	23,520	1,844
Less: Comprehensive income attributable to non-controlling interests	(3,887)	(3,784)	(10,705)	(13,535)
Comprehensive income (loss) attributable to ATN International, Inc.	14,557	$ (26,004)	12,815	$ (11,691)
ASU 2014-09 \| Change
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	250		1,063
Comprehensive income (loss)	250		1,063
Less: Comprehensive income attributable to non-controlling interests	(109)		(444)
Comprehensive income (loss) attributable to ATN International, Inc.	141		619
ASU 2014-09 \| Under previous guidance
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	20,659		28,324
Other comprehensive loss, net of tax	(2,465)		(5,867)
Comprehensive income (loss)	18,194		22,457
Less: Comprehensive income attributable to non-controlling interests	(3,778)		(10,261)
Comprehensive income (loss) attributable to ATN International, Inc.	$ 14,416		$ 12,196

Revenue Recognition - Impacts of adoption in the current period - SOCF (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Net income	$ 20,909	$ (20,976)	$ 29,387	$ 1,519
Materials and supplies, prepayments, and other current assets			(715)	(1,875)
Accrued taxes			7,410	(8,966)
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities			6,926	13,642
Other assets			139	3,794
Net Cash Provided by (Used in) Operating Activities			98,014	121,988
Net Cash Provided by (Used in) Investing Activities			(105,652)	(139,256)
Net Cash Provided by (Used in) Financing Activities			(37,948)	(29,654)
Net change in cash, cash equivalents, and restricted cash			(45,939)	$ (46,722)
ASU 2014-09 \| Change
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Net income	250		1,063
Materials and supplies, prepayments, and other current assets			(1,039)
Accrued taxes			73
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities			102
Other assets			(199)
Net Cash Provided by (Used in) Operating Activities			0
Net Cash Provided by (Used in) Investing Activities			0
Net Cash Provided by (Used in) Financing Activities			0
Net change in cash, cash equivalents, and restricted cash			0
ASU 2014-09 \| Under previous guidance
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Net income	$ 20,659		28,324
Materials and supplies, prepayments, and other current assets			324
Accrued taxes			7,337
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities			6,824
Other assets			$ 338

IMPACT OF HURRICANES IRMA AND MARIA (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
IMPACT OF THE HURRICANES IRMA AND MARIA
Revenue	$ 121,138		$ 343,401
Payment for network repairs and resiliency enhancements			78,903
HURRICANES IRMA AND MARIA
IMPACT OF THE HURRICANES IRMA AND MARIA
Hurricane impact, increase (decrease) in revenue		$ 4,600		$ (11,600)
Payment for network repairs and resiliency enhancements			78,900
HURRICANES IRMA AND MARIA \| Universal Service Fund programs
IMPACT OF THE HURRICANES IRMA AND MARIA
Revenue	$ 7,200		$ 15,400

DISPOSITIONS - Disposition - Viya (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Viya (formerly Innovative) Cable operations - USD ($) $ in Millions	Aug. 18, 2017	Jan. 03, 2017
St. Maarten
Disposition
Consideration for sale of operations		$ 4.8
Gain on disposition		$ 0.1
British Virgin Islands
Disposition
Gain on disposition	$ 0.0

DISPOSITIONS - Disposition - Sovernet and U.S. Solar (Details) - USD ($) $ in Thousands			3 Months Ended			9 Months Ended		12 Months Ended
	Nov. 06, 2018	Mar. 08, 2017	Dec. 31, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Assets and liabilities disposed
Current liabilities held for sale				$ 80,673		$ 80,673
Purchase of non-controlling interests						5,196	$ 1,104
Loss on deconsolidation of subsidiary							529
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Sovernet
Disposition
Cash proceeds		$ 20,900
Receivables, escrowed		3,000
Contingent consideration		2,000
Fair value of contingent consideration								$ 0
Total cash proceeds including working capital adjustments		25,926
Assets and liabilities disposed
Cash		1,821
Accounts receivable		1,696
Inventory		639
Prepayments and other current assets		1,034
Property, plant and equipment		25,294
Other assets		288
Accounts payable and accrued liabilities		(1,718)
Advance payments and deposits		(1,897)
Net assets disposed		27,157
Consideration less net assets disposed		(1,231)
Transaction costs:		(1,156)
(Loss) Gain		(2,387)
Purchase of non-controlling interests		700
Non-controlling interest book value		0
Loss on deconsolidation of subsidiary		500
Transaction-related charges								$ 600
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Sovernet \| Maximum
Disposition
Contingent consideration		$ 4,000
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| U.S. Solar Operations \| Subsequent event
Disposition
Cash proceeds	$ 65,400
Debt assumption	57,200
Receivables, escrowed	6,500
Total cash proceeds including working capital adjustments	$ 122,600
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| U.S. Solar Operations \| Minimum \| Subsequent event \| Forecast
Assets and liabilities disposed
(Loss) Gain			$ 10,000
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| U.S. Solar Operations \| Maximum \| Subsequent event \| Forecast
Assets and liabilities disposed
(Loss) Gain			$ 15,000
Held for sale \| U.S. Solar Operations
Assets and liabilities disposed
Accounts receivable				1,599		1,599
Prepayments and other current assets				783		783
Property, plant and equipment				113,569		113,569
Accumulated depreciation				(18,474)		(18,474)
Current assets held for sale				97,477		97,477
Accounts payable				1,742		1,742
Taxes payable				(586)		(586)
Current portion of long-term debt				10,126		10,126
Long-term debt, excluding current portion				48,034		48,034
Deferred income taxes				21,357		21,357
Current liabilities held for sale				80,673		80,673
Income before income taxes				400	$ 1,100	2,400	3,800
Non-controlling interest expense				$ 200	300	$ 700	800
Depreciation expense					$ 1,300		$ 3,800

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	9 Months Ended
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair value measurements
Equity investments with readily determinable fair values	$ 400
Loss on equity securities	100
Impairment or price adjustments for strategic investments	0
Carrying Value
Fair value measurements
Long-term debt	150,000	$ 155,800
Carrying Value \| Other Assets
Fair value measurements
Strategic investments	23,100	20,100
Level 2 \| Estimated Fair Value
Fair value measurements
Long-term debt	153,200	159,200
Recurring basis
Fair value measurements
Total assets and liabilities measured at fair value	27,347	60,367
Recurring basis \| Interest rate swap
Fair value measurements
Derivative liabilities	277	52
Recurring basis \| Certificate of deposit
Fair value measurements
Cash and cash equivalents	380	391
Recurring basis \| Money market funds
Fair value measurements
Cash and cash equivalents	2,399	2,894
Recurring basis \| Short Term Investments
Fair value measurements
Investments	314	7,076
Recurring basis \| Commercial paper
Fair value measurements
Cash and cash equivalents	23,977	49,954
Recurring basis \| Level 1
Fair value measurements
Total assets and liabilities measured at fair value	2,713	3,449
Recurring basis \| Level 1 \| Money market funds
Fair value measurements
Cash and cash equivalents	2,399	2,894
Recurring basis \| Level 1 \| Short Term Investments
Fair value measurements
Investments	314	555
Recurring basis \| Level 2
Fair value measurements
Total assets and liabilities measured at fair value	24,634	56,918
Recurring basis \| Level 2 \| Interest rate swap
Fair value measurements
Derivative liabilities	277	52
Recurring basis \| Level 2 \| Certificate of deposit
Fair value measurements
Cash and cash equivalents	380	391
Recurring basis \| Level 2 \| Short Term Investments
Fair value measurements
Investments		6,521
Recurring basis \| Level 2 \| Commercial paper
Fair value measurements
Cash and cash equivalents	$ 23,977	$ 49,954

LONG-TERM DEBT (Details) $ in Millions			9 Months Ended
LONG-TERM DEBT (Details) $ in Millions	May 22, 2017 USD ($)	May 03, 2016 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Jul. 31, 2017 USD ($)	May 21, 2017 USD ($)	Dec. 19, 2016 USD ($)	Jul. 01, 2016 USD ($)	Jan. 11, 2016 USD ($)	Jan. 10, 2016 USD ($)	Dec. 24, 2014 USD ($)	Dec. 19, 2014 USD ($)
PSE&G
Long-term debt
Stated interest rate											11.30%
Outstanding debt			$ 2.0
One Communications Debt
Long-term debt
Maximum borrowing capacity	$ 37.5
Term loan assumed		$ 35.4
Financing costs	$ 0.3
Outstanding debt			32.8
Unamortized financing costs			0.2
One Communications Debt \| Three month LIBOR
Long-term debt
Basis spread on variable rate (as a percent)		3.25%
One Communications Debt \| Minimum
Long-term debt
Percentage of notional amount required for hedging arrangement	30.00%
One Communications Debt \| Minimum \| Three month LIBOR
Long-term debt
Basis spread on variable rate (as a percent)	2.50%
One Communications Debt \| Maximum
Long-term debt
Period to enter into hedging arrangement	90 days
One Communications Debt \| Maximum \| Three month LIBOR
Long-term debt
Basis spread on variable rate (as a percent)	2.75%
One Communications Debt \| Overdraft Facility
Long-term debt
Maximum borrowing capacity	$ 10.0					$ 5.0
Borrowings outstanding			0.0
One Communications Debt \| Overdraft Facility \| Three month LIBOR
Long-term debt
Basis spread on variable rate (as a percent)	1.75%
Viya Debt
Long-term debt
Secured debt principal amount								$ 60.0
Net leverage ratio								3.5
Stated interest rate								4.00%
Financing costs								$ 0.9
Intercompany debt limit			75.0	$ 50.0
Outstanding debt			60.0
Unamortized financing costs			0.7
Revolver loan \| Credit facility
Long-term debt
Maximum borrowing capacity									$ 400.0	$ 275.0		$ 225.0
Borrowings outstanding			$ 0.0
Revolver loan \| Credit facility \| Minimum
Long-term debt
Commitment fee (as a percent)			0.175%
Revolver loan \| Credit facility \| Minimum \| LIBOR
Long-term debt
Basis spread on variable rate (as a percent)			1.50%
Revolver loan \| Credit facility \| Minimum \| Base rate
Long-term debt
Basis spread on variable rate (as a percent)			0.50%
Revolver loan \| Credit facility \| Maximum
Long-term debt
Commitment fee (as a percent)			0.25%
Revolver loan \| Credit facility \| Maximum \| LIBOR
Long-term debt
Basis spread on variable rate (as a percent)			1.75%
Revolver loan \| Credit facility \| Maximum \| Base rate
Long-term debt
Basis spread on variable rate (as a percent)			0.75%
Letter of credit sub-facility \| Credit facility
Long-term debt
Maximum borrowing capacity												10.0
Swingline sub-facility \| Credit facility
Long-term debt
Maximum borrowing capacity												10.0
Base rate before one-week or one-month LIBOR (as a percent)			1.00%
Swingline sub-facility \| Credit facility \| Federal Funds Effective Rate
Long-term debt
Basis spread on variable rate (as a percent)			0.50%
Term loans \| Credit facility
Long-term debt
Maximum borrowing capacity									$ 200.0
Term loans \| Ahana Debt
Long-term debt
Term loan assumed											$ 38.9
Term loans \| Ahana Debt \| Minimum
Long-term debt
Effective interest rate (as a percent)											4.50%
Term loans \| Ahana Debt \| Maximum
Long-term debt
Effective interest rate (as a percent)											6.00%
Mobility Funds \| Letter of credit sub-facility \| Credit facility
Long-term debt
Maximum borrowing capacity												$ 25.0
Ahana Operations \| Series A Notes
Long-term debt
Secured debt principal amount							$ 20.6
Stated interest rate							4.427%
Ahana Operations \| Series B Notes
Long-term debt
Secured debt principal amount							$ 45.2
Stated interest rate							5.327%
Ahana Operations \| Series A and Series B Notes
Long-term debt
Financing costs							$ 2.8
Outstanding debt			$ 58.6
Unamortized financing costs			$ 2.5
Cash flow hedge \| Interest rate swap
Long-term debt
Notional amount					$ 11.0
Interest rate (as a percent)					1.874%

GOVERNMENT GRANTS (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
GOVERNMENT GRANTS (Details) $ in Thousands	Aug. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Sep. 30, 2018 USD ($) item
Government Grants
Revenue		$ 121,138		$ 343,401
Universal Service Fund programs
Government Grants
Number of fund disbursement programs \| item				4
Universal Service Fund programs \| HURRICANES IRMA AND MARIA
Government Grants
Revenue		7,200		$ 15,400
Mobility Funds
Government Grants
Mobility Funds received		21,100		21,100
Mobility Funds \| U.S. Telecom
Government Grants
Grant funds used to offset fixed asset related costs		7,200		7,200
Grant funds used to offset operating expenses		13,900		13,900
High-Cost Support Program \| U.S. Telecom
Government Grants
Revenue		300		900
High-Cost Support Program \| International Telecom segment
Government Grants
Revenue		4,100		12,400
E-Rate, Lifeline and Rural Health Care Support Programs
Government Grants
Revenue		2,000		6,300
E-Rate
Government Grants
Grant Funds Awarded				$ 15,400
Tribal Bidding Credit
Government Grants
Wireless service spectrum (in Mhz) \| item				600
Revenue			$ 7,400
Grant funds estimated to offset fixed asset related costs		5,400		$ 5,400
Grant funds estimated to offset operating expenses		$ 2,000		$ 2,000
Connect America Fund Phase II Auction
Government Grants
Grant Funds Awarded	$ 79,900
Grant fund term	10 years

EQUITY (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
EQUITY (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stockholders' equity
Equity, beginning of period			$ 830,223	$ 809,169
Stock-based compensation			5,071	5,415
Comprehensive income:
Net income	$ 20,909	$ (20,976)	29,387	1,519
Projected pension benefit obligation				513
Unrealized gain (loss) on securities	45	67	226	(65)
Reclassifications of gains on sale of marketable securities to net income				(1,044)
Foreign currency translation adjustment	(2,510)	(1,311)	(6,093)	921
Comprehensive income (loss)	18,444	(22,220)	23,520	1,844
Issuance of common stock upon exercise of stock options			571	1,057
Dividends declared on common stock			(8,116)	(13,680)
Distributions to non-controlling interests			(15,487)	(3,761)
Investments made by non-controlling interests				123
Loss on deconsolidation of subsidiary				529
Repurchase of non-controlling interests			(5,196)	(1,104)
Purchase of treasury stock			(4,174)	(12,968)
Equity, end of period	829,047	786,734	829,047	786,734
ASU 2016-09
Comprehensive income:
Change in accounting method- adoption		110		110
ASU 2014-09
Comprehensive income:
Change in accounting method- adoption	2,635		2,635
Total ATNI Stockholders' Equity
Stockholders' equity
Equity, beginning of period			688,727	677,055
Stock-based compensation			5,071	5,415
Comprehensive income:
Net income			18,682	(12,016)
Projected pension benefit obligation				513
Unrealized gain (loss) on securities			226	(65)
Reclassifications of gains on sale of marketable securities to net income				(1,044)
Foreign currency translation adjustment			(6,093)	921
Comprehensive income (loss)			12,815	(11,691)
Issuance of common stock upon exercise of stock options			571	1,057
Dividends declared on common stock			(8,116)	(13,680)
Repurchase of non-controlling interests			1,273	(670)
Purchase of treasury stock			(4,174)	(12,968)
Equity, end of period	697,655	644,628	697,655	644,628
Total ATNI Stockholders' Equity \| ASU 2016-09
Comprehensive income:
Change in accounting method- adoption		110		110
Total ATNI Stockholders' Equity \| ASU 2014-09
Comprehensive income:
Change in accounting method- adoption	1,488		1,488
Non-Controlling Interests
Stockholders' equity
Equity, beginning of period			141,496	132,114
Comprehensive income:
Net income			10,705	13,535
Comprehensive income (loss)			10,705	13,535
Distributions to non-controlling interests			(15,487)	(3,761)
Investments made by non-controlling interests				123
Loss on deconsolidation of subsidiary				529
Repurchase of non-controlling interests			(6,469)	(434)
Equity, end of period	131,392	$ 142,106	131,392	$ 142,106
Non-Controlling Interests \| ASU 2014-09
Comprehensive income:
Change in accounting method- adoption	$ 1,147		$ 1,147

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
INCOME TAXES
Effective tax rate (as a percent)	25.10%	4.00%	30.70%	76.10%
Income tax benefit from release of capital loss valuation allowance			$ 514
Income tax benefit for the net capital loss due to the stock sales of businesses		$ 3,400		$ 3,400
Provision for the intercompany sale of assets			695
Increase (net) in unrecognized tax benefits recognized discretely	$ 1,500	228	2,000	683
Benefit (net) to record a return to accrual adjustment	516	536	585	367
Benefit (net) to record the change in valuation allowance	1,400		$ 1,400
Income tax refund from prior year		$ 3,400		$ 3,400
Provision on remeasurement of deferred taxes adjustment	400
Benefit on remeasurement of deferred taxes					$ 18,000
Provision on the deemed repatriation of undistributed foreign earnings adjustment	$ 2,500
Provision for deemed repatriation of undistributed foreign earnings					$ 7,400

NET INCOME (LOSS) PER SHARE (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Reconciliation from basic to diluted weighted average common shares outstanding
Basic weighted-average shares of common stock outstanding	15,958	16,178	15,987	16,177
Stock options (in shares)	63		55
Diluted weighted-average shares of common stock outstanding	16,021	16,178	16,042	16,177

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended			9 Months Ended
SEGMENT REPORTING (Details) $ in Thousands	Sep. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) segment	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Segment reporting
Number of reportable segments \| segment				3
Revenue
Revenue	$ 121,138		$ 122,132	$ 343,401	$ 373,492
Depreciation and amortization	21,384		21,157	64,602	65,904
Non-cash stock-based compensation	1,393		1,658	5,071	5,437
Operating income (loss)	30,824		(19,565)	50,786	13,998
Segment Assets
Cash, Cash equivalents, and Investments	161,426			161,426		$ 215,032
Assets held for sale	97,477			97,477
Total current assets	349,297			349,297		342,928
Fixed assets, net	614,427			614,427		643,146
Goodwill	63,970			63,970		63,970
Total assets	1,184,050			1,184,050		1,205,605
Liabilities held for sale	80,673			80,673
Total current liabilities	215,326			215,326		161,705
Total debt	91,871			91,871		155,792
Capital Expenditures
Capital expenditures				154,278	108,276
Hurricane rebuild capital expenditures				78,903
Hurricane insurance proceeds				34,606
Wireless
Revenue
Revenue	52,003		60,305	153,046	175,777
Wireline
Revenue
Revenue	63,717		56,817	173,083	182,777
Renewable Energy
Revenue
Revenue	5,418		5,010	17,272	14,938
Corporate and Other
Revenue
Depreciation and amortization	1,459		1,112	4,190	3,526
Non-cash stock-based compensation	1,344		1,621	4,917	5,205
Operating income (loss)	(8,012)		(7,997)	(26,190)	(25,953)
Segment Assets
Cash, Cash equivalents, and Investments	73,386			73,386		76,627
Total current assets	80,600			80,600		93,497
Fixed assets, net	19,537			19,537		17,752
Total assets	177,433			177,433		184,050
Total current liabilities	22,532			22,532		13,816
Capital Expenditures
Capital expenditures				6,385	4,778
U.S. Telecom \| Operating segments
Revenue
Revenue	31,808		40,110	90,591	120,881
Depreciation and amortization	5,665		6,301	19,013	19,098
Operating income (loss)	22,774		15,987	35,839	44,520
Segment Assets
Cash, Cash equivalents, and Investments	25,202			25,202		19,585
Total current assets	48,003			48,003		40,975
Fixed assets, net	80,088			80,088		99,462
Goodwill	35,269			35,269		35,269
Total assets	187,831			187,831		200,142
Total current liabilities	23,825			23,825		41,248
Capital Expenditures
Capital expenditures				9,461	17,396
U.S. Telecom \| Operating segments \| Wireless
Revenue
Revenue	29,784		37,774	85,767	110,398
U.S. Telecom \| Operating segments \| Wireline
Revenue
Revenue	2,024		2,336	4,824	10,483
International Telecom segment \| Operating segments
Revenue
Revenue	83,912		77,012	235,538	237,673
Depreciation and amortization	12,441		12,088	35,907	38,339
Non-cash stock-based compensation	20		8	68	146
Operating income (loss)	16,239		(28,531)	37,450	(7,832)
Segment Assets
Cash, Cash equivalents, and Investments	50,753			50,753		110,700
Total current assets	99,624			99,624		190,396
Fixed assets, net	473,086			473,086		367,485
Goodwill	25,421			25,421		25,421
Total assets	640,123			640,123		629,007
Total current liabilities	84,310			84,310		91,887
Total debt	91,871			91,871		94,577
Capital Expenditures
Capital expenditures				136,790	54,775
Hurricane rebuild capital expenditures				78,900
Hurricane insurance proceeds		$ 34,600
International Telecom segment \| Operating segments \| Wireless
Revenue
Revenue	22,219		22,531	67,279	65,379
International Telecom segment \| Operating segments \| Wireline
Revenue
Revenue	61,693		54,481	168,259	172,294
Renewable Energy \| Operating segments
Revenue
Revenue	5,418		5,010	17,272	14,938
Depreciation and amortization	1,819		1,656	5,492	4,941
Non-cash stock-based compensation	29		29	86	86
Operating income (loss)	(177)		976	3,687	3,263
Segment Assets
Cash, Cash equivalents, and Investments	12,085			12,085		8,120
Assets held for sale	97,477			97,477
Total current assets	121,070			121,070		18,060
Fixed assets, net	41,716			41,716		158,447
Goodwill	3,280			3,280		3,280
Total assets	178,663			178,663		192,406
Liabilities held for sale	80,673			80,673
Total current liabilities	84,659			84,659		14,754
Total debt						$ 61,215
Capital Expenditures
Capital expenditures				1,642	31,327
Renewable Energy \| Operating segments \| Renewable Energy
Revenue
Revenue	$ 5,418		$ 5,010	$ 17,272	$ 14,938

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions	1 Months Ended		9 Months Ended	12 Months Ended
	Dec. 31, 2017	Nov. 30, 2007	Sep. 30, 2018	Dec. 31, 2011
Contingency related to spectrum fees
Commitments and contingencies
Spectrum fees paid				$ 2.6
Litigation proceedings and disputes in Guyana
Commitments and contingencies
Period for which litigation proceedings and other disputes have not been the subject of discussions or other significant activity			5 years
Lawsuit filed by CTL
Commitments and contingencies
Damages asserted	$ 25.0	$ 200.0
Legal claims regarding tax filings with the Guyana Revenue Authority
Commitments and contingencies
Future payments related to disputed tax assessments			$ 44.1
Accrued contingent liability			$ 5.0
Legal claims regarding tax filings with the Guyana Revenue Authority \| Minimum
Commitments and contingencies
Percentage of return on investment ensured by the government of Guyana			15.00%

SUBSEQUENT EVENTS (Details) - Subsequent event - Disposal Group, Disposed of by Sale, Not Discontinued Operations - U.S. Solar Operations - USD ($) $ in Millions		3 Months Ended
	Nov. 06, 2018	Dec. 31, 2018
SUBSEQUENT EVENT
Consideration for sale of operations	$ 122.6
Cash proceeds	65.4
Debt assumption	57.2
Receivables, escrowed	$ 6.5
Forecast \| Minimum
SUBSEQUENT EVENT
Gain on disposition		$ 10.0
Forecast \| Maximum
SUBSEQUENT EVENT
Gain on disposition		$ 15.0