0001558370-24-011708 | 10-Q | XBRL Viewer

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
Purchase of shares of common stock	420,959	146,134	483,899	217,697
Dividends declared on common stock (in dollars per share)	$ 0.24	$ 0.21	$ 0.48	$ 0.42

GOVERNMENT SUPPORT AND SPECTRUM MATTERS

6 Months Ended

Jun. 30, 2024

GOVERNMENT SUPPORT AND SPECTRUM MATTERS

GOVERNMENT SUPPORT AND SPECTRUM MATTERS

8. GOVERNMENT SUPPORT AND SPECTRUM MATTERS

Universal Service Fund and Other Domestic Funding Programs

The Company recognizes revenue from several government funded programs including the Universal Service Fund (“USF”), a subsidy program managed by the Federal Communications Commission (“FCC”), and the Alaska Universal Service Fund (“AUSF”), a similar program managed by the Regulatory Commission of Alaska (the “RCA”). USF funds are disbursed to telecommunication providers through four programs the High Cost Program; the Low Income Program (“Lifeline Program”); the Schools and Libraries Program (“E-Rate Program”); and the Rural Health Care Support Program (“RHC”). The Company’s International Telecom segment receives $5.5 million of legacy frozen high cost support funding in the US Virgin Islands. This funding expires on December 31, 2025. Additionally, the Company recognizes revenue from the FCC’s Affordable Connectivity Program (“ACP”) and the Emergency Connectivity Fund (“ECF”). The ACP provides eligible low-income consumers with a monthly subsidy for broadband connectivity and the ECF provides schools and libraries with subsidies for broadband connectivity. Funding under the ACP and ECF programs expired in the second quarter of 2024.

The Company’s US Telecom segment also recognizes High Cost support revenue from the Connect America Fund Phase II program (“CAF II”) and the Enhanced Alternative Connect America Cost Model program (“E-ACAM”). These programs offer subsidies to carriers to expand broadband coverage in designated areas. Under CAF II, the Company expects to receive an aggregate of $27.7 million annually through December 2025 and an aggregate of $8.0 million annually from January 2026 through July 2028. Under E-ACAM, the Company expects to receive a total of $118.2 million over a 15 year period beginning in 2024. The annual E-ACAM funding is approximately $9 million from 2024 through 2030 and ultimately decreasing over time to $6 million in 2038.

The Company was awarded approximately $22.7 million over 10 years to provide broadband and voice coverage to over 10,000 households in the United States (not including Alaska) under the 2020 Rural Digital Opportunity Fund Phase I Auction (“RDOF”). Revenue recognized from the RDOF program is recognized as revenue from government grants. During the six months ended June 30, 2024, the Company entered into agreements to transfer $13.0 million of RDOF obligations. The transfer applications are pending regulatory approval.

All of the programs are subject to certain operational and reporting compliance requirements. The Company believes it is in compliance with these requirements as of June 30, 2024. Revenue recognized from the USF High Cost Program, including the CAF II and E-ACAM programs, is recognized as revenue from government grants. Revenue from other programs is recognized in accordance with ASC 606.

The Company recorded the amounts below as communication services revenue for the reported periods (in thousands):


	Three months ended						Three months ended
	June 30, 2024						June 30, 2023

	US Telecom		International Telecom		Total		US Telecom		International Telecom		Total

High cost support	$	3,483	$	1,393	$	4,876	$	2,222	$	1,397	$	3,619
CAF II		6,784		—		6,784		6,815		—		6,815
RDOF		145		—		145		608		—		608
ECF		498		—		498		6,813		—		6,813
RHC		3,682		—		3,682		2,887		—		2,887
Other		1,707		155		1,862		4,668		5		4,673
Total	$	16,299	$	1,548	$	17,847	$	24,013	$	1,402	$	25,415


	Six months ended						Six months ended
	June 30, 2024						June 30, 2023

	US Telecom		International Telecom		Total		US Telecom		International Telecom		Total

High cost support	$	6,937	$	2,786	$	9,723	$	4,716	$	2,795	$	7,511
CAF II		13,571		—		13,571		13,630		—		13,630
RDOF		290		—		290		1,216		—		1,216
ECF		7,312		—		7,312		14,880		—		14,880
RHC		7,119		—		7,119		5,787		—		5,787
Other		8,407		470		8,877		9,361		9		9,370
Total	$	43,636	$	3,256	$	46,892	$	49,590	$	2,804	$	52,394

Construction Grants

The Company has also been awarded construction grants to build network connectivity for eligible communities. The funding of these grants, used to reimburse the Company for its construction costs, is generally distributed after the Company incurs reimbursable costs. Completion deadlines begin in 2024 and once these projects are constructed, the Company is obligated to provide service to the participants. The Company expects to meet all requirements associated with these grants. A roll forward of the Company’s grant awards is below (in thousands).


	Amount
Grants awarded, December 31, 2023	$	100,149
New grants		—
Construction complete		—
Transferred grants		—
Grants awarded, June 30, 2024	$	100,149

During the six months ended June 30, 2024, the Company disbursed capital expenditures of $3.6 million under these programs and received reimbursement of $2.3 million. These cash flows are classified as investing activities in the Company’s statement of cash flows.

In addition, the Company partners with tribal governments to obtain grants under various government programs including the Tribal Broadband Connectivity Program (“TBCP”) and the Rural Development Broadband ReConnect Program (“ReConnect”). The TBCP and ReConnect programs are administered by United States government agencies to deploy broadband connectivity in certain underserved areas. The Company was identified as a sub recipient of grants under these programs totaling $192.6 million as of June 30, 2024. Through June 30, 2024, the Company has received $11.3 million of funding under these programs and spent $11.4 million on construction obligations. These amounts are recorded as operating cash flows in the company’s statement of cash flows.

Replace and Remove Program

On July 15, 2022, the Company was notified that it was an approved participant in the Federal Communication Commission’s Secure and Trusted Communications Networks Reimbursement Program (the “Replace and Remove Program”), designed to reimburse providers of communications services for reasonable costs incurred in the required removal, replacement, and disposal of covered communications equipment or services, that have been deemed to pose a national security risk, from their networks. Pursuant to the Replace and Remove Program, the Company was allocated up to approximately $207 million in reimbursement amounts to cover documented and approved costs to remove and securely destroy all ZTE communications equipment and services in its U.S. networks and replace such equipment. The Replace and Remove Program requires that the Company complete the project no later than one year from submitting its initial reimbursement request, or by July 2024. In April 2024, the FCC granted the Company’s request to extend the program’s completion deadlines to the first quarter of 2025. At this time, the Company anticipates that it will be able to meet the deadlines and requirements of the program.

A summary of the amounts spent and reimbursed under the Replace and Remove Program is below (in thousands):


	Capital		Operating		Total

Total spend, December 31, 2023	$	49,262	$	15,126	$	64,388
Amounts spent		38,126		9,528		47,654
Total spend, June 30, 2024	$	87,388	$	24,654	$	112,042

Total reimbursements, December 31, 2023	$	(12,773)	$	(4,354)	$	(17,127)
Reimbursements received		(41,421)		(10,721)		(52,142)
Total reimbursements, June 30, 2024	$	(54,194)	$	(15,075)	$	(69,269)

Amount pending reimbursement	$	33,194	$	9,579	$	42,773


	Capital		Operating		Total

Total spend, December 31, 2022	$	1,836	$	1,489	$	3,325
Amounts spent		12,739		4,966		17,705
Total spend, June 30, 2023	$	14,575	$	6,455	$	21,030

Amount pending reimbursement	$	14,575	$	6,455	$	21,030

At June 30, 2024, $27.3 million of the capital expenditures were accrued and unpaid. The Company expects to be reimbursed, within the next twelve months, for all amounts spent to date. Amounts identified as capital are recorded as investing cash flows and amounts identified as operating are recorded as operating cash flows in the Company’s statement of cash flows.

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
INCOME TAXES
Effective tax rate (as a percent)	1.80%	88.50%	35.00%	43.00%
Income tax expense (benefit)	$ 204	$ (5,087)	$ 1,822	$ (5,827)
Pretax income (loss)	11,541	(5,748)	5,213	(13,544)
Expense associated with gain on sale of land	2,400		2,400
Benefit from the reversal of unrecognized tax positions due to statute expiration	3,700	4,000	3,700	4,000
Expense for an uncertain tax position for the current year			1,500
Expense for interest on uncertain tax positions	$ 800	$ 700	$ 1,500	$ 1,300

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 48
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-48

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 7: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(11))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477250/944-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477314/942-235-S99-1

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483621/220-10-S99-2

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478524/942-220-S99-1

+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.7)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-10

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(9))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477250/944-220-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Subparagraph (a)
-SubTopic 20
-Topic 740
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482659/740-20-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h))
-SubTopic 10
-Topic 235
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

REVENUE RECOGNITION AND RECEIVABLES - Remaining Performance Obligations (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($)
Revenue Recognition
Revenue, Practical Expedient, Financing Component [true false]	false
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue Recognition
Transaction price allocated to unsatisfied performance obligations	$ 579
Percentage of performance obligations to be satisfied	40.00%
Period to satisfy the remaining performance obligations and recognize the transaction price	24 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue Recognition
Transaction price allocated to unsatisfied performance obligations	$ 60
Period to satisfy the remaining performance obligations and recognize the transaction price	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue Recognition
Transaction price allocated to unsatisfied performance obligations	$ 60
Period to satisfy the remaining performance obligations and recognize the transaction price	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Revenue Recognition
Transaction price allocated to unsatisfied performance obligations	$ 60
Period to satisfy the remaining performance obligations and recognize the transaction price	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01
Revenue Recognition
Transaction price allocated to unsatisfied performance obligations	$ 60
Period to satisfy the remaining performance obligations and recognize the transaction price	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-01-01
Revenue Recognition
Transaction price allocated to unsatisfied performance obligations	$ 60
Period to satisfy the remaining performance obligations and recognize the transaction price	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2031-01-01
Revenue Recognition
Transaction price allocated to unsatisfied performance obligations	$ 60
Period to satisfy the remaining performance obligations and recognize the transaction price	12 months

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 58,932	$ 49,225
Restricted cash	14,321	12,942
Short-term investments	300	300
Accounts receivable, net of allowances for credit losses of $16.6 million	98,324	88,030
Replace and remove program receivable	42,773	50,586
Customer receivable	7,746	7,249
Inventory, materials and supplies	15,067	19,133
Prepayments and other current assets	58,433	53,807
Total current assets	295,896	281,272
Fixed assets, net	1,061,322	1,080,659
Telecommunication licenses, net	113,319	113,319
Goodwill	40,104	40,104
Intangible assets, net	15,788	19,585
Operating lease right-of-use assets	97,738	99,335
Customer receivable - long term	43,761	45,676
Other assets	104,413	103,764
Total assets	1,772,341	1,783,714
Current Liabilities:
Current portion of long-term debt	16,573	24,290
Current portion of customer receivable credit facility	7,659	7,110
Accounts payable and accrued liabilities	163,902	182,069
Dividends payable	3,626	3,701
Accrued taxes	11,994	10,876
Current portion of lease liabilities	15,074	15,164
Advance payments and deposits	50,057	49,984
Total current liabilities	268,885	293,194
Deferred income taxes	17,754	19,775
Lease liabilities, excluding current portion	75,592	76,936
Deferred revenue, long-term	59,373	64,035
Other liabilities	75,943	74,531
Customer receivable credit facility, net of current portion	38,442	38,943
Long-term debt, excluding current portion	524,262	492,580
Total liabilities	1,060,251	1,059,994
Total redeemable noncontrolling interests	83,325	85,917
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; 17,879,110 and 17,702,476 shares issued, respectively, 15,114,216 and 15,421,481 shares outstanding, respectively	173	173
Treasury stock, at cost; 2,764,894 and 2,280,995 shares, respectively	(102,379)	(90,447)
Additional paid-in capital	209,944	205,797
Retained earnings	409,043	417,282
Accumulated other comprehensive income	9,990	8,268
Total ATN International, Inc. stockholders' equity	526,771	541,073
Noncontrolling interests	101,994	96,730
Total equity	628,765	637,803
Total liabilities, redeemable noncontrolling interests and equity	1,772,341	1,783,714
Redeemable preferred units
Current Liabilities:
Total redeemable noncontrolling interests	62,821	60,094
Redeemable Common Units
Current Liabilities:
Total redeemable noncontrolling interests	$ 20,504	$ 25,823

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS - Redeemable Noncontrolling Interests Activity (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Increase (decrease) in temporary equity
Beginning balance	$ 85,917	$ 92,469
Accrued preferred dividend	2,727	2,306
Allocated net loss	(6,176)	(6,170)
Change in fair value	857	5,879
Ending balance	83,325	94,484
Redeemable Preferred Units
Increase (decrease) in temporary equity
Beginning balance	60,094	55,152
Accrued preferred dividend	2,727	2,306
Ending balance	62,821	57,458
Redeemable Common Units
Increase (decrease) in temporary equity
Beginning balance	25,823	37,317
Allocated net loss	(6,176)	(6,170)
Change in fair value	857	5,879
Ending balance	$ 20,504	$ 37,026

- Definition

Carrying amount, attributable to parent and noncontrolling interests, of an entity's issued and outstanding stock which is not included within permanent equity. Temporary equity is a security with redemption features that are outside the control of the issuer, is not classified as an asset or liability in conformity with GAAP, and is not mandatorily redeemable. Includes any type of security that is redeemable at a fixed or determinable price or on a fixed or determinable date or dates, is redeemable at the option of the holder, or has conditions for redemption which are not solely within the control of the issuer. Includes stock with a put option held by an ESOP and stock redeemable by a holder only in the event of a change in control of the issuer.

+ References + Details

INCOME TAXES

6 Months Ended

Jun. 30, 2024

INCOME TAXES

INCOME TAXES

10. INCOME TAXES

The Company’s effective tax rate for the three months ended June 30, 2024 and 2023 was 1.8% and 88.5% respectively.

The Company recorded an income tax expense of $0.2 million in relation to a pretax income of $11.5 million for the three months ended June 30, 2024. The effective tax rate for the three months ended June 30, 2024 was primarily impacted by the following items (i) the mix of income generated among the jurisdictions in which the Company operates, (ii) net expense related to valuation allowances placed on certain deferred tax assets that are not expected to be realizable based on the weight of positive and negative evidence and (iii) discrete items including a $2.4 million expense associated with the gain on sale of land in a foreign jurisdiction, a $3.7 million benefit from the reversal of an unrecognized tax position due to a statute of limitations expiration and a $0.8 million expense for interest on unrecognized tax positions.

The Company recorded an income tax benefit of $5.1 million in relation to a pretax loss of $5.7 million for the three months ended June 30, 2023. The effective tax rate for the three months ended June 30, 2023 was primarily impacted by the following items (i) the mix of income generated among the jurisdictions in which the Company operates, (ii) net expense related to valuation allowances placed on certain deferred tax assets that are not expected to be realizable based on the weight of positive and negative evidence and (iii) discrete items including a $4.0 million benefit

from the reversal of an unrecognized tax position due to a statute of limitations expiration and a $0.7 million expense for interest on unrecognized tax positions.

The Company’s effective tax rate for the six months ended June 30, 2024 and 2023 was 35.0% and 43.0%, respectively.

The Company recorded an income tax expense of $1.8 million in relation to a pretax income of $5.2 million for the six months ended June 30, 2024. The effective tax rate for the six months ended June 30, 2024 was primarily impacted by the following items (i) the mix of income generated among the jurisdictions in which the Company operates, (ii) net expense related to valuation allowances placed on certain deferred tax assets that are not expected to be realizable based on the weight of positive and negative evidence and (iii) discrete items including a $2.4 million expense associated with the gain on sale of land in a foreign jurisdiction, a $3.7 million benefit from the reversal of an unrecognized tax position due to a statute of limitations expiration, a $1.5 million expense to record an unrecognized tax position for the current year, and a $1.5 million expense for interest on unrecognized tax positions.

The Company recorded an income tax benefit of $5.8 million in relation to a pretax loss of $13.5 million for the six months ended June 30, 2023. The effective tax rate for the six months ended June 30, 2023 was primarily impacted by the following items (i) the mix of income generated among the jurisdictions in which the Company operates, (ii)net expense related to valuation allowances placed on certain deferred tax assets that are not expected to be realizable based on the weight of positive and negative evidence and (iii) discrete items including a $4.0 million benefit from the reversal of an unrecognized tax position due to a statute of limitations expiration, and a $1.3 million expense for interest on unrecognized tax positions.

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 the Company operates. While the Company believes it has adequately provided for all tax positions, amounts asserted by taxing authorities could materially differ from the Company’s accrued positions as a result of uncertain and complex applications of tax law and regulations. Additionally, the recognition and measurement of certain tax benefits include estimates and judgments by management. Accordingly, the Company could record additional provisions or benefits for US federal, state, and foreign tax matters in future periods as new information becomes available.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income (loss)	$ 3,391	$ (7,717)
Adjustments to reconcile net loss to net cash flows provided by operating activities:
Depreciation and amortization	69,897	72,621
Amortization of intangibles from acquisitions	3,924	6,391
Provision for doubtful accounts	2,855	2,463
Amortization of debt discount and debt issuance costs	1,249	1,162
(Gain) loss on disposition of assets and contingent consideration	(16,422)	278
Stock-based compensation	4,690	4,517
Deferred income taxes	(2,550)	(6,616)
Loss on pension settlement		369
Gain on investments	(218)	(2,501)
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions:
Accounts receivable and replace and remove program receivable	(8,751)	1,311
Customer receivable	1,418	1,186
Prepaid income taxes	23	739
Accrued taxes	250	2,563
Materials and supplies, prepayments, and other current assets	2,208	220
Accounts payable and accrued liabilities, advance payments and deposits and other current liabilities	(1,110)	(6,860)
Other assets	727	(4,552)
Other liabilities	(3,171)	(5,245)
Net cash provided by operating activities	58,410	60,329
Cash flows from investing activities:
Capital expenditures	(61,830)	(89,451)
Government capital programs - Amounts disbursed	(46,198)	(6,986)
Government capital programs - Amounts received	43,686	593
Purchases of strategic investments		(1,055)
Acquisition of business		1,314
Purchase of intangible assets	(573)
Purchase of investments - employee benefit plan	(39)
Proceeds from investments - employee benefit plan	201
Proceeds from sale of assets	17,910
Net cash used in investing activities	(46,843)	(95,585)
Cash flows from financing activities:
Dividends paid on common stock	(7,421)	(6,633)
Distributions to noncontrolling interests	(2,116)	(1,447)
Payment of debt issuance costs	(974)	(159)
Finance lease payments	(915)	(481)
Term loan - repayments	(12,112)	(2,335)
Revolving credit facility - borrowings	75,000	88,273
Revolving credit facility - repayments	(40,002)	(26,500)
Proceeds from customer receivable credit facility	3,700	4,300
Repayment of customer receivable credit facility	(3,709)	(3,247)
Purchases of common stock - stock- based compensation	(1,932)	(1,433)
Purchases of common stock - share repurchase plan	(10,000)	(6,828)
Repurchases of noncontrolling interests		(760)
Net cash provided by financing activities	(481)	42,750
Net change in cash, cash equivalents, and restricted cash	11,086	7,494
Total cash, cash equivalents, and restricted cash, beginning of period	62,167	59,728
Total cash, cash equivalents, and restricted cash, end of period	73,253	67,222
Supplemental cash flow information:
Interest paid	22,589	18,299
Taxes paid	4,615	2,203
Dividends declared, not paid	3,626	3,273
Noncash investing activity:
Amounts accrued for reimbursable capital expenditures from government capital programs	27,418	11,296
Amounts accrued for non-reimbursable capital expenditures	$ 12,928	$ 20,433

SEGMENT REPORTING

6 Months Ended

Jun. 30, 2024

SEGMENT REPORTING

SEGMENT REPORTING

12. SEGMENT REPORTING

The Company has the following two reportable and operating segments: i) International Telecom and ii) US Telecom.

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


For the Three Months Ended June 30, 2024

	International		US		Corporate and
	Telecom		Telecom		Other (1)		Consolidated
Revenue
Communication Services
Mobility - Business	$	4,932	$	68	$	—	$	5,000
Mobility - Consumer		21,879		701		—		22,580
Total Mobility		26,811		769		—		27,580
Fixed - Business		18,715		30,817		—		49,532
Fixed - Consumer		43,500		21,674		—		65,174
Total Fixed		62,215		52,491		—		114,706
Carrier Services		3,636		30,056		—		33,692
Other		1,045		342		—		1,387
Total Communication Services Revenue		93,707		83,658		—		177,365
Construction		—		820		—		820
Other
Managed Services		1,650		3,446		—		5,096
Total other revenue		1,650		3,446		—		5,096
Total Revenue		95,357		87,924		—		183,281
Depreciation and amortization		16,277		19,234		47		35,558
Amortization of intangibles from acquisitions		252		1,693		—		1,945
Stock-based compensation		193		196		2,392		2,781
Operating income (loss)		32,405		884		(8,973)		24,316

(1)

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


For the Three Months Ended June 30, 2023

	International		US		Corporate and
	Telecom		Telecom		Other (1)		Consolidated
Revenue
Communication Services
Mobility - Business	$	3,507	$	114	$	—	$	3,621
Mobility - Consumer		23,349		863		—		24,212
Total Mobility		26,856		977		—		27,833
Fixed - Business		17,214		35,495		—		52,709
Fixed - Consumer		42,459		22,608		—		65,067
Total Fixed		59,673		58,103		—		117,776
Carrier Services		3,879		31,576		—		35,455
Other		448		64		—		512
Total Communication Services Revenue		90,856		90,720		—		181,576
Construction		—		1,020		—		1,020
Other
Managed Services		1,125		2,720		—		3,845
Total Other Revenue		1,125		2,720		—		3,845
Total Revenue		91,981		94,460		—		186,441
Depreciation and amortization		14,106		21,430		681		36,217
Amortization of intangibles from acquisitions		364		2,780		—		3,144
Stock-based compensation		109		9		2,621		2,739
Operating income (loss)		14,552		(2,394)		(9,718)		2,440

(1)

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


For the Six Months Ended June 30, 2024

	International		US		Corporate and
	Telecom		Telecom		Other (1)		Consolidated
Revenue
Communication Services
Mobility - Business	$	9,740	$	141	$	—	$	9,881
Mobility - Consumer		43,108		1,465		—		44,573
Total Mobility		52,848		1,606		—		54,454
Fixed - Business		37,247		65,783		—		103,030
Fixed - Consumer		86,289		44,593		—		130,882
Total Fixed		123,536		110,376		—		233,912
Carrier Services		7,209		60,109		—		67,318
Other		1,863		1,086		—		2,949
Total Communication Services Revenue		185,456		173,177		—		358,633
Construction		—		2,406		—		2,406
Other
Managed Services		2,960		6,077		—		9,037
Total Other Revenue		2,960		6,077		—		9,037
Total Revenue		188,416		181,660		—		370,076
Depreciation and amortization		32,400		37,372		125		69,897
Amortization of intangibles from acquisitions		503		3,421		—		3,924
Stock-based compensation		217		327		4,146		4,690
Operating income (loss)		44,090		1,482		(16,682)		28,890

(1)

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


For the Six Months Ended June 30, 2023

	International		US		Corporate and
	Telecom		Telecom		Other (1)		Consolidated
Revenue
Communication Services
Mobility - Business	$	7,083	$	286	$	—	$	7,369
Mobility - Consumer		45,880		1,850		—		47,730
Total Mobility		52,963		2,136		—		55,099
Fixed - Business		34,327		71,814		—		106,141
Fixed - Consumer		84,236		45,190		—		129,426
Total Fixed		118,563		117,004		—		235,567
Carrier Services		7,570		63,660		—		71,230
Other		848		139		—		987
Total Communication Services Revenue		179,944		182,939		—		362,883
Construction		—		1,610		—		1,610
Other
Managed Services		2,445		5,276		—		7,721
Total other revenue		2,445		5,276		—		7,721
Total Revenue		182,389		189,825		—		372,214
Depreciation and amortization		28,292		42,917		1,412		72,621
Amortization of intangibles from acquisitions		744		5,647		—		6,391
Stock-based compensation		176		86		4,255		4,517
Operating income (loss)		28,377		(6,737)		(18,566)		3,074

(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 June 30, 2024 and December 31, 2023 consists of the following (in thousands):


	International		US		Corporate and
	Telecom		Telecom		Other		Consolidated
June 30, 2024
Cash, cash equivalents, and restricted cash	$	33,563	$	36,448	$	3,242	$	73,253
Total current assets		130,572		155,822		9,502		295,896
Fixed assets, net		475,862		579,092		6,368		1,061,322
Goodwill		4,835		35,269		—		40,104
Total assets		683,111		997,592		91,638		1,772,341
Total current liabilities		91,529		145,856		31,500		268,885
Total debt, including current portion		59,801		298,375		182,659		540,835
December 31, 2023
Cash, cash equivalents, and restricted cash	$	26,354	$	33,574	$	2,239	$	62,167
Total current assets		107,469		162,768		11,035		281,272
Fixed assets, net		481,911		593,833		4,915		1,080,659
Goodwill		4,836		35,268		—		40,104
Total assets		672,171		1,019,924		91,619		1,783,714
Total current liabilities		86,540		169,297		37,357		293,194
Total debt, including current portion		64,254		293,607		159,009		516,870

For the six months ended June 30, 2024 and 2023, the Company spent $108.0 million and $96.4 million, respectively, on capital expenditures relating to its telecommunications networks and business support systems of which $46.2 million and $7.0 million, respectively, are reimbursable under various government programs. The following notes the Company’s capital expenditures, by operating segment, for these periods (in thousands).


	Capital Expenditures

		International		US		Corporate and
Six months ended June 30,		Telecom		Telecom		Other (1)		Consolidated
2024	$	28,951	$	77,498	$	1,579	$	108,028
2023		38,906		57,531		—		96,437

(1)

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

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 48
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-48

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-34

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-15

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/280/tableOfContent

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-21

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-21

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment, tax expense		$ 0.0		$ 0.0
Reclassification of loss on pension settlement, net of tax		$ (0.1)		$ (0.1)
Unrealized gain on derivatives net of tax expense	$ (0.1)		$ (0.6)

GOVERNMENT SUPPORT AND SPECTRUM MATTERS (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) item	Jun. 30, 2023 USD ($)	Jul. 15, 2022 USD ($)
Mobility Fund [Line Items]
Revenue from contract with customer	$ 169,366	$ 173,438	$ 342,274	$ 345,996
Reimbursable capital expenditures			46,198	6,986
Amounts accrued for reimbursable capital expenditures from government capital programs			27,418	11,296
Government capital programs - Amounts received			43,686	593
USF, CAF II, RDOF, EOF, RHC and Other Programs \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	17,847	25,415	46,892	52,394
USF, CAF II, RDOF, EOF, RHC and Other Programs \| US Telecom \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	16,299	24,013	43,636	49,590
USF, CAF II, RDOF, EOF, RHC and Other Programs \| International Telecom \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	1,548	1,402	$ 3,256	2,804
Universal Service Fund programs
Mobility Fund [Line Items]
Number of fund disbursement programs \| item			4
High cost support program \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	4,876	3,619	$ 9,723	7,511
High cost support program \| US Telecom \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	3,483	2,222	6,937	4,716
High cost support program \| International Telecom \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	1,393	1,397	2,786	2,795
Government capital programs - Amounts received			5,500
CAF II \| Grant receivable through December 2025
Mobility Fund [Line Items]
Amount that has been funded or will be funded	27,700		27,700
CAF II \| Grant receivable from January 2026 through July 2028
Mobility Fund [Line Items]
Amount that has been funded or will be funded	8,000		8,000
CAF II \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	6,784	6,815	13,571	13,630
CAF II \| US Telecom \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	6,784	6,815	13,571	13,630
E-ACAM
Mobility Fund [Line Items]
Amount that has been funded or will be funded	118,200		$ 118,200
Grant fund term			15 years
E-ACAM \| Grant receivable from 2024 through 2030
Mobility Fund [Line Items]
Amount that has been funded or will be funded	9,000		$ 9,000
E-ACAM \| Grant receivable in year 2038
Mobility Fund [Line Items]
Amount that has been funded or will be funded	6,000		6,000
TBCP and Reconnect
Mobility Fund [Line Items]
Grant funds awarded during the period			192,600
Government capital programs - Amounts received			11,300
Construction Obligation			11,400
RDOF
Mobility Fund [Line Items]
Grant funds expected to be awarded	22,700		$ 22,700
Grant fund term			10 years
Number of households to receive broadband coverage \| item			10,000
Transfer of obligation under pending approval of regulatory	13,000		$ 13,000
RDOF \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	145	608	290	1,216
RDOF \| US Telecom \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	145	608	290	1,216
ECF \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	498	6,813	7,312	14,880
ECF \| US Telecom \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	498	6,813	7,312	14,880
RHC \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	3,682	2,887	7,119	5,787
RHC \| US Telecom \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	3,682	2,887	7,119	5,787
Other Programs \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	1,862	4,673	8,877	9,370
Other Programs \| US Telecom \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	1,707	4,668	8,407	9,361
Other Programs \| International Telecom \| Communication services
Mobility Fund [Line Items]
Revenue from contract with customer	$ 155	$ 5	$ 470	$ 9
Remove And Replace Program
Mobility Fund [Line Items]
Reimbursement period			12 months
Amounts accrued for reimbursable capital expenditures from government capital programs			$ 27,300
Remove And Replace Program \| Maximum
Mobility Fund [Line Items]
Amount of cost reimbursement allocated					$ 207,000
Network Connectivity for Eligible Communities
Mobility Fund [Line Items]
Reimbursable capital expenditures			3,600
Grant funds awarded during the period			0
Government capital programs - Amounts received			$ 2,300

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2024

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 the periods described therein. 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, 2023, filed with the SEC on March 15, 2024.

The condensed consolidated financial statements include the accounts of the Company, its subsidiaries in which the Company holds controlling interests 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 December 2023, the FASB released ASU 2023-09, titled "Enhancements to Income Tax Disclosures," with the aim of improving the clarity and usefulness of income tax disclosures. The update focuses primarily on enhancing disclosures related to rate reconciliation and income taxes paid. ASU 2023-09 becomes effective for annual reporting periods starting after December 15, 2024, with early adoption permitted. While the changes prescribed by ASU 2023-09 are implemented prospectively, retrospective application is also allowed. The Company has chosen not to early adopt this standard and is currently assessing its potential impact on our consolidated financial statements and accompanying disclosures.

In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (ASU 2023-07), which requires that a public entity disclose, on an interim and annual basis, significant segment expense categories and amounts that are regularly provided to its chief operating decision maker (CODM) and included in each reported measure of segment profit or loss. An entity must also disclose, by reportable segment, the amount and composition of other expenses. The standard requires an entity to disclose the title and position of its CODM and explain how the CODM uses these reported measures in assessing segment performance and determining how to allocate resources. ASU 2023-07 will be effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 31, 2024, with retrospective application. The standard allows early adoption of these requirements and we are currently evaluating the disclosure impacts of our adoption.

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS - Redeemable Noncontrolling Interests Narrative (Details) - Redeemable Common Units [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Reconciliation from basic to diluted weighted average common shares outstanding
Allocated losses	$ 2.7	$ 3.4	$ 6.2	$ 6.2
Increase in book value			$ 0.9	$ 5.9

FAIR VALUE MEASUREMENTS AND INVESTMENTS - Investments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Roll forward of investments
Beginning balance	$ 42,907	$ 38,169
Income recognized	64	2,501
Contributions / (distributions)	(330)	695
Foreign currency gain		229
Ending balance	42,641	41,594
Investments without a readily determinable fair value
Roll forward of investments
Beginning balance	41,710	22,590
Income recognized		1,786
Contributions / (distributions)		425
Ending balance	41,710	24,801
Fair value investments
Roll forward of investments
Beginning balance	1,197	1,616
Income recognized	64	130
Contributions / (distributions)	(330)	(360)
Ending balance	$ 931	1,386
Equity method investments
Roll forward of investments
Beginning balance		13,963
Income recognized		585
Contributions / (distributions)		630
Foreign currency gain		229
Ending balance		$ 15,407

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended		6 Months Ended
SEGMENT REPORTING (Details) $ in Thousands	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Segment reporting
Number of reportable segments \| segment			2
Number of operating segments \| segment			2
Revenue
Total Revenue	$ 183,281	$ 186,441	$ 370,076	$ 372,214
Depreciation and amortization	35,558	36,217	69,897	72,621
Amortization of intangibles from acquisitions	1,945	3,144	3,924	6,391
Stock-based compensation	2,781	2,739	4,690	4,517
Operating income (loss)	24,316	2,440	28,890	3,074
Segment Assets
Cash, cash equivalents, and restricted cash	73,253	67,222	73,253	67,222	$ 62,167	$ 59,728
Total current assets	295,896		295,896		281,272
Fixed assets, net	1,061,322		1,061,322		1,080,659
Goodwill	40,104		40,104		40,104
Total assets	1,772,341		1,772,341		1,783,714
Total current liabilities	268,885		268,885		293,194
Total debt, including current portion	540,835		540,835		516,870
Capital Expenditures
Capital expenditures			108,028	96,437
Reimbursable Capital Expenditures			46,198	6,986
Communication Services
Revenue
Total Revenue	177,365	181,576	358,633	362,883
Mobility
Revenue
Total Revenue	27,580	27,833	54,454	55,099
Mobility - Business
Revenue
Total Revenue	5,000	3,621	9,881	7,369
Mobility - Consumer
Revenue
Total Revenue	22,580	24,212	44,573	47,730
Fixed
Revenue
Total Revenue	114,706	117,776	233,912	235,567
Fixed - Business
Revenue
Total Revenue	49,532	52,709	103,030	106,141
Fixed - Consumer
Revenue
Total Revenue	65,174	65,067	130,882	129,426
Carrier services
Revenue
Total Revenue	33,692	35,455	67,318	71,230
Other
Revenue
Total Revenue	1,387	512	2,949	987
Construction
Revenue
Total Revenue	820	1,020	2,406	1,610
Other
Revenue
Total Revenue	5,096	3,845	9,037	7,721
Managed Services
Revenue
Total Revenue	5,096	3,845	9,037	7,721
Corporate and Other
Revenue
Depreciation and amortization	47	681	125	1,412
Stock-based compensation	2,392	2,621	4,146	4,255
Operating income (loss)	(8,973)	(9,718)	(16,682)	(18,566)
Segment Assets
Cash, cash equivalents, and restricted cash	3,242		3,242		2,239
Total current assets	9,502		9,502		11,035
Fixed assets, net	6,368		6,368		4,915
Total assets	91,638		91,638		91,619
Total current liabilities	31,500		31,500		37,357
Total debt, including current portion	182,659		182,659		159,009
Capital Expenditures
Capital expenditures			1,579
International Telecom \| Operating segments
Revenue
Total Revenue	95,357	91,981	188,416	182,389
Depreciation and amortization	16,277	14,106	32,400	28,292
Amortization of intangibles from acquisitions	252	364	503	744
Stock-based compensation	193	109	217	176
Operating income (loss)	32,405	14,552	44,090	28,377
Segment Assets
Cash, cash equivalents, and restricted cash	33,563		33,563		26,354
Total current assets	130,572		130,572		107,469
Fixed assets, net	475,862		475,862		481,911
Goodwill	4,835		4,835		4,836
Total assets	683,111		683,111		672,171
Total current liabilities	91,529		91,529		86,540
Total debt, including current portion	59,801		59,801		64,254
Capital Expenditures
Capital expenditures			28,951	38,906
International Telecom \| Operating segments \| Communication Services
Revenue
Total Revenue	93,707	90,856	185,456	179,944
International Telecom \| Operating segments \| Mobility
Revenue
Total Revenue	26,811	26,856	52,848	52,963
International Telecom \| Operating segments \| Mobility - Business
Revenue
Total Revenue	4,932	3,507	9,740	7,083
International Telecom \| Operating segments \| Mobility - Consumer
Revenue
Total Revenue	21,879	23,349	43,108	45,880
International Telecom \| Operating segments \| Fixed
Revenue
Total Revenue	62,215	59,673	123,536	118,563
International Telecom \| Operating segments \| Fixed - Business
Revenue
Total Revenue	18,715	17,214	37,247	34,327
International Telecom \| Operating segments \| Fixed - Consumer
Revenue
Total Revenue	43,500	42,459	86,289	84,236
International Telecom \| Operating segments \| Carrier services
Revenue
Total Revenue	3,636	3,879	7,209	7,570
International Telecom \| Operating segments \| Other
Revenue
Total Revenue	1,045	448	1,863	848
International Telecom \| Operating segments \| Other
Revenue
Total Revenue	1,650	1,125	2,960	2,445
International Telecom \| Operating segments \| Managed Services
Revenue
Total Revenue	1,650	1,125	2,960	2,445
US Telecom \| Operating segments
Revenue
Total Revenue	87,924	94,460	181,660	189,825
Depreciation and amortization	19,234	21,430	37,372	42,917
Amortization of intangibles from acquisitions	1,693	2,780	3,421	5,647
Stock-based compensation	196	9	327	86
Operating income (loss)	884	(2,394)	1,482	(6,737)
Segment Assets
Cash, cash equivalents, and restricted cash	36,448		36,448		33,574
Total current assets	155,822		155,822		162,768
Fixed assets, net	579,092		579,092		593,833
Goodwill	35,269		35,269		35,268
Total assets	997,592		997,592		1,019,924
Total current liabilities	145,856		145,856		169,297
Total debt, including current portion	298,375		298,375		$ 293,607
Capital Expenditures
Capital expenditures			77,498	57,531
US Telecom \| Operating segments \| Communication Services
Revenue
Total Revenue	83,658	90,720	173,177	182,939
US Telecom \| Operating segments \| Mobility
Revenue
Total Revenue	769	977	1,606	2,136
US Telecom \| Operating segments \| Mobility - Business
Revenue
Total Revenue	68	114	141	286
US Telecom \| Operating segments \| Mobility - Consumer
Revenue
Total Revenue	701	863	1,465	1,850
US Telecom \| Operating segments \| Fixed
Revenue
Total Revenue	52,491	58,103	110,376	117,004
US Telecom \| Operating segments \| Fixed - Business
Revenue
Total Revenue	30,817	35,495	65,783	71,814
US Telecom \| Operating segments \| Fixed - Consumer
Revenue
Total Revenue	21,674	22,608	44,593	45,190
US Telecom \| Operating segments \| Carrier services
Revenue
Total Revenue	30,056	31,576	60,109	63,660
US Telecom \| Operating segments \| Other
Revenue
Total Revenue	342	64	1,086	139
US Telecom \| Operating segments \| Construction
Revenue
Total Revenue	820	1,020	2,406	1,610
US Telecom \| Operating segments \| Other
Revenue
Total Revenue	3,446	2,720	6,077	5,276
US Telecom \| Operating segments \| Managed Services
Revenue
Total Revenue	$ 3,446	$ 2,720	$ 6,077	$ 5,276

LEASES

6 Months Ended

Jun. 30, 2024

LEASES

LEASES

4. LEASES

Lessee Disclosure

The Company has operating and financing leases for towers, land, corporate offices, retail facilities, and data transport capacity. The lease terms are generally between three and 10 years, some of which include additional renewal options.

Supplemental lease information

The components of lease expense were as follows (in thousands):


	Three months ended				Six months ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Operating lease cost:
Operating lease cost	$	5,626	$	5,763	$	11,105	$	11,744
Short-term lease cost		757		625		1,448		1,303
Variable lease cost		1,695		1,383		3,124		2,045
Total operating lease cost	$	8,078	$	7,771	$	15,677	$	15,092

Finance lease cost:
Amortization of right-of-use asset	$	976	$	804	$	1,588	$	1,504
Variable costs		169		227		368		430
Interest costs		100		78		200		162
Total finance lease cost	$	1,245	$	1,109	$	2,156	$	2,096

During the six months ended June 30, 2024 and 2023, the Company paid $9.5 million and $9.7 million, respectively, for operating lease liabilities. During the six months ended June 30, 2024 and 2023, the Company recorded $5.7 million and $12.3 million, respectively, of operating lease liabilities arising from right of use assets. During the six months ended June 30, 2023, in conjunction with the restructuring activities the Company terminated certain leases and removed $5.6 million of lease right of use assets and $5.9 million of lease liabilities from its balance sheet, resulting in the recording of a gain of $0.3 million in the restructuring expense line of its statement of operations.

At June 30, 2024, finance leases with a cost of $32.2 million and accumulated amortization of $17.9 million were included in fixed assets, net. During the six months ended June 30, 2024, the Company paid $0.9 million of financing cash flows and $0.2 million of operating cash flows for finance lease liabilities. During the six months ended June 30, 2023, the Company paid $0.5 million of financing cash flows, $3.4 million of investing cash flows and $0.2 million of operating cash flows for finance lease liabilities. At June 30, 2024, finance leases had a lease liability of $5.2 million, of which $1.8 million was current.

At December 31, 2023, finance leases with a cost of $31.7 million and accumulated amortization of $16.4 million were included in fixed assets, net.

The weighted average remaining lease terms and discount rates as of June 30, 2024 and December 31, 2023 are noted in the table below:


	June 30, 2024		December 31, 2023
Weighted-average remaining lease term
Operating leases		12.7 years		13.3 years
Financing leases		5.0 years		9.2 years

Weighted-average discount rate
Operating leases		6.7%		6.3%
Financing leases		7.2%		6.6%

Maturities of lease liabilities as of June 30, 2024 were as follows (in thousands):


	Operating Leases		Financing Leases
2024 (excluding the six months ended June 30, 2024)	$	9,353	$	1,077
2025		17,531		1,529
2026		13,288		746
2027		10,437		704
2028		8,263		551
Thereafter		83,250		2,145
Total lease payments		142,122		6,752
Less imputed interest		(56,683)		(1,525)
Total	$	85,439	$	5,227

Maturities of lease liabilities as of December 31, 2023 were as follows (in thousands):


	Operating Leases		Financing Leases
2024	$	18,048	$	2,030
2025		16,022		1,488
2026		11,755		601
2027		9,327		534
2028		7,807		505
Thereafter		80,637		2,145
Total lease payments		143,596		7,303
Less imputed interest		(57,133)		(1,662)
Total	$	86,463	$	5,641

As of June 30, 2024, the Company did not have any material operating or finance leases that have not yet commenced.

Lessor Disclosure

The Company is the lessor in agreements to lease the use of its network assets including its wireless cell sites and buildings. For the six months ended June 30, 2024 and 2023, the Company recorded $4.2 million and $3.9 million, respectively, of lease income from agreements in which the Company is the lessor For the three months ended June 30, 2024 and 2023, the Company recorded $2.1 million and $2.0 million, respectively, of lease income from agreements in which the Company is the lessor. Lease income is classified as Carrier Services revenue in the statement of operations

The following table presents the maturities of future undiscounted lease payments for the periods indicated (in thousands):


2024 (excluding the six months ended June 30, 2024)	$	3,669
2025		7,062
2026		6,730
2027		5,538
2028		5,157
Thereafter		13,262
Total future lease payments	$	41,418

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Aug. 09, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-12593
Entity Registrant Name	ATN INTERNATIONAL, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-0728886
Entity Address, Address Line One	500 Cummings Center
Entity Address, Address Line Two	Suite 2450
Entity Address, City or Town	Beverly
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01915
City Area Code	978
Local Phone Number	619-1300
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	ATNI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,114,216
Entity Central Index Key	0000879585
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

LEASES - Weighted average remaining lease terms and discount rates (Details)	Jun. 30, 2024	Dec. 31, 2023
LEASES
Operating leases, weighted average remaining lease term	12 years 8 months 12 days	13 years 3 months 18 days
Financing leases, weighted average remaining lease term	5 years	9 years 2 months 12 days
Operating leases, weighted average discount rate	6.70%	6.30%
Financing leases, weighted average discount rate	7.20%	6.60%

LONG-TERM DEBT - Quarterly Payments Dates (Details) - 2023 CoBank Term Loan - 2023 CoBank Credit Facility	Jul. 13, 2023 USD ($)
Quarterly Payment, December 31, 2023 - June 30, 2025
Debt Instrument [Line Items]
Quarterly repayments	$ 812,500
Interest rate	2.50%
Quarterly Payment, September 30, 2025 - June 30, 2026
Debt Instrument [Line Items]
Quarterly repayments	$ 1,625,000
Interest rate	5.00%
Quarterly Payment, September 30, 2026 - June 30,2029
Debt Instrument [Line Items]
Quarterly repayments	$ 2,437,500
Interest rate	7.50%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 55
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482949/835-30-55-8

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(f))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69B

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69C

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69E

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69F
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69F

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1D

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1D

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1D

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1F

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1F

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (b)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1F

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1F
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1F

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 26: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 27: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482900/835-30-50-1

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Non-controlling interest, net of tax (benefit) expense	$ (0.4)	$ (0.7)	$ (0.1)	$ (1.2)

ORGANIZATION AND BUSINESS OPERATIONS (Tables)

6 Months Ended

Jun. 30, 2024

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

The following chart summarizes the operating activities of the Company’s principal subsidiaries, the segments in which it reports its revenue and the markets it served during the three months ended June 30, 2024:


International Telecom			US Telecom
Services	Markets	Tradenames	Services	Markets	Tradenames
Mobility Services	Bermuda, Guyana, US Virgin Islands	One, GTT, Viya, Brava	Mobility Services	United States (rural markets)	Choice, Choice NTUA Wireless
Fixed Services	Bermuda, Cayman Islands, Guyana, US Virgin Islands	One, Logic, GTT, Viya, Brava	Fixed Services	United States	Alaska Communications, Commnet, Choice, Choice NTUA Wireless, Sacred Wind Communications, Ethos, Deploycom
Carrier Services	Bermuda, Guyana, US Virgin Islands	One, Essextel, GTT, Viya	Carrier Services	United States	Alaska Communications, Commnet, Sacred Wind Communications
Managed Services	Bermuda, Cayman Islands, US Virgin Islands, Guyana	Fireminds, One, Logic, GTT, Viya, Brava	Managed Services	United States	Alaska Communications, Choice

Schedule of restructuring expenses

A summary of the costs, since the first quarter of 2023, is below (in thousands):


		US		International
		Telecom		Telecom		Total
Employee termination benefits	$	1,960	$	4,681	$	6,641
Contract termination costs		5,777		—		5,777
Total	$	7,737	$	4,681	$	12,418

RETIREMENT PLANS

6 Months Ended

Jun. 30, 2024

RETIREMENT PLANS

RETIREMENT PLANS

9. RETIREMENT PLANS

Multi-employer Defined Benefit Plan

Pension benefits for substantially all of the Company’s Alaska-based employees are provided through the Alaska Electrical Pension Fund (“AEPF”). The Company pays a contractual hourly amount based on employee classification or base compensation to the AEPF. As a multi-employer defined benefit plan, the accumulated benefits

and plan assets are not determined for, or allocated separately to, the individual employer. This plan was not in endangered or critical status during the plan year.

Defined Benefit Plan

The Company has noncontributory defined benefit pension and noncontributory defined medical, dental, vision, and life benefit plans for eligible employees who meet certain eligibility criteria. The majority of benefits under the plans are frozen and the plans no longer allow new participants to join.

The Company recorded the net periodic benefit cost identified below (in thousands):


	Three months ended								Six months ended
	June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
	Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits
Operating expense
Service cost	$	22	$	16	$	38	$	31	$	45	$	33	$	76	$	62
Non-operating expense
Interest cost		824		45		593		35		1,649		90		1,187		70
Expected return on plan assets		(729)		—		(953)		—		(1,459)		—		(1,905)		—
Amortization of unrecognized actuarial gain		(11)		(28)		—		—		(21)		(56)		—		—
Settlements		—		—		—		—		—		—		369		—
Net periodic pension expense (benefit)	$	106	$	33	$	(322)	$	66	$	214	$	67	$	(273)	$	132

The Company was not required to make contributions to its pension plans during the six months ended June 30, 2024 and 2023. However, the Company periodically evaluates whether to make discretionary contributions. The Company funds its postretirement benefit plans as claims are made and did not make contributions to its pension plans during the six months ended June 30, 2024 and 2023.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (q)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (l)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/715/tableOfContent

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (o)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (p)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480266/715-60-50-3

+ Details

LONG-TERM DEBT (Tables)

6 Months Ended

Jun. 30, 2024

LONG-TERM DEBT

Schedule of quarterly repayments


2023 CoBank Term Loan Quarterly Payment Dates	2023 CoBank Term Loan Quarterly Repayments
December 31, 2023 – June 30, 2025	$812,500 (2.5% per annum)
September 30, 2025 – June 30, 2026	$1,625,000 (5% per annum)
September 30, 2026 – June 30, 2029	$2,437,500 (7.5% per annum)

Schedule of future principal repayments annual maturities of the Company's debt instruments

The table below summarizes the annual maturities of the Company’s debt instruments (amounts in thousands):


									Customer
	US		International		Corporate and		Total		Receivable
Amounts Maturing During	Telecom		Telecom		Other		Debt		Credit Facility
July 1, 2024 through December 31, 2024	$	6,050	$	—	$	1,625	$	7,675	$	3,786
Year ending December 31, 2025		14,969		—		4,875		19,844		7,833
Year ending December 31, 2026		262,969		60,000		8,125		331,094		8,195
Year ending December 31, 2027		3,723		—		9,750		13,473		8,576
Year ending December 31, 2028		3,858		—		68,370		72,228		8,978
Thereafter		10,192		—		93,438		103,630		9,160
Total		301,761		60,000		186,183		547,944		46,528
Debt Discounts		(3,386)		(199)		(3,524)		(7,109)		(427)
Book Value as of June 30, 2024	$	298,375	$	59,801	$	182,659	$	540,835	$	46,101

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(22))
-SubTopic 10
-Topic 210
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69B

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69E

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-3

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477734/942-470-50-3

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-8

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-6

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-7

+ Details

REVENUE RECOGNITION AND RECEIVABLES (Tables)

6 Months Ended

Jun. 30, 2024

REVENUE RECOGNITION AND RECEIVABLES

Summary of revenues

Revenue accounted for in accordance with ASC 606 consisted of the following for the periods presented below (in thousands):


	Three months ended June 30, 2024						Three months ended June 30, 2023
	International		US				International		US
	Telecom		Telecom		Total		Telecom		Telecom		Total
Services transferred over time	$	90,271	$	71,829	$	162,100	$	86,730	$	80,330	$	167,060
Goods and services transferred at a point in time		3,618		3,648		7,266		3,781		2,597		6,378
Total revenue accounted for under ASC 606	$	93,889	$	75,477	$	169,366	$	90,511	$	82,927	$	173,438
Operating lease income		75		2,036		2,111		73		1,887		1,960
Government grant revenue (1)		1,393		10,411		11,804		1,397		9,646		11,043
Total revenue	$	95,357	$	87,924	$	183,281	$	91,981	$	94,460	$	186,441


	Six months ended June 30, 2024						Six months ended June 30, 2023
	International		US				International		US
	Telecom		Telecom		Total		Telecom		Telecom		Total
Services transferred over time	$	178,831	$	149,872	$	328,703	$	172,409	$	161,403	$	333,812
Goods and services transferred at a point in time		6,652		6,919		13,571		7,040		5,144		12,184
Total revenue accounted for under ASC 606	$	185,483	$	156,791	$	342,274	$	179,449	$	166,547	$	345,996
Operating lease income		147		4,070		4,217		145		3,717		3,862
Government grant revenue (1)		2,786		20,799		23,585		2,795		19,561		22,356
Total revenue	$	188,416	$	181,660	$	370,076	$	182,389	$	189,825	$	372,214

(1)

Revenue recognized from CAF II, USF and RDOF programs. Refer to Note 8.

Summary of contracts asset and liabilities

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


	June 30, 2024		December 31, 2023			$ Change	% Change
Contract asset – current	$	3,701	$	3,616	$	85		2.4	%
Contract asset – noncurrent		5,149		5,509		(360)		(6.5)	%
Contract liability – current		(32,283)		(30,990)		(1,293)		4.2	%
Contract liability – noncurrent		(59,373)		(64,035)		4,662		(7.3)	%
Net contract liability	$	(82,806)	$	(85,900)	$	3,094		(3.6)	%

Schedule of activity in allowances for credit losses

Activity in the allowance for credit losses is below (in thousands):


	Six months ended
	June 30, 2024		June 30, 2023

Balance at beginning of period	$	16,362	$	15,171
Current period provision for expected losses		2,855		2,463
Write-offs charged against the allowance		(2,918)		(1,878)
Recoveries collected		133		188
Balance at end of period	$	16,432	$	15,944

ORGANIZATION AND BUSINESS OPERATIONS - Asset Disposition (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Disposition
Cash proceeds received for disposal of fixed asset		$ 17,910
Fixed assets, net	$ 1,061,322	1,061,322	$ 1,080,659
Non-core fixed asset \| Disposal
Disposition
Gain on disposal of fixed asset	15,800
Cash proceeds received for disposal of fixed asset	17,800
Fixed assets, net	500	$ 500
Transaction costs	$ 1,500

REVENUE RECOGNITION AND RECEIVABLES - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Contract Assets and Liabilities
Retail revenue period for billing postpaid customers in advance	1 month
Contract Asset - current	$ 3,701	$ 3,616
Change in contract asset - current	$ 85
% of change in contract asset - current	2.40%
Contract Asset - noncurrent	$ 5,149	5,509
Change in contract asset - noncurrent	$ (360)
% of change in contract asset - noncurrent	(6.50%)
Contract liability- current	$ (32,283)	(30,990)
Change in contract liabilities - current	$ (1,293)
% of change in contract liabilities - current	4.20%
Contract liability- noncurrent	$ (59,373)	(64,035)
Change in contract liabilities - noncurrent	$ 4,662
% of change in contract liabilities - Noncurrent	(7.30%)
Net contract liability	$ (82,806)	$ (85,900)
Change in net contract liability	$ 3,094
% of change in net contract liability	(3.60%)
Revenue recognized related to contract liability	$ 22,200
Amortization of contract assets	$ 2,500

RETIREMENT PLANS (Tables)

6 Months Ended

Jun. 30, 2024

RETIREMENT PLANS

Schedule of components of the plan's net periodic pension cost

The Company recorded the net periodic benefit cost identified below (in thousands):


	Three months ended								Six months ended
	June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
	Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits		Pension benefits		Postretirement benefits
Operating expense
Service cost	$	22	$	16	$	38	$	31	$	45	$	33	$	76	$	62
Non-operating expense
Interest cost		824		45		593		35		1,649		90		1,187		70
Expected return on plan assets		(729)		—		(953)		—		(1,459)		—		(1,905)		—
Amortization of unrecognized actuarial gain		(11)		(28)		—		—		(21)		(56)		—		—
Settlements		—		—		—		—		—		—		369		—
Net periodic pension expense (benefit)	$	106	$	33	$	(322)	$	66	$	214	$	67	$	(273)	$	132

FAIR VALUE MEASUREMENTS AND INVESTMENTS

6 Months Ended

Jun. 30, 2024

FAIR VALUE MEASUREMENTS AND INVESTMENTS

FAIR VALUE MEASUREMENTS AND INVESTMENTS

6. FAIR VALUE MEASUREMENTS AND INVESTMENTS

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 June 30, 2024 and December 31, 2023 are summarized as follows (in thousands):


	June 30, 2024
	Significant Other
	Quoted Prices in		Observable		Unobservable
	Active Markets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Short term investments	$	300	$	—	$	—	$	300
Other investments		—		—		931		931
Employee benefit plan investments		3,007		—		—		3,007
Interest rate swap		—		(28)		—		(28)
Alaska Communications redeemable common units		—		—		(5,744)		(5,744)
Alloy redeemable common units		—		—		(14,760)		(14,760)
Warrants on Alaska Communications redeemable common units		—		—		(249)		(249)
Total assets and liabilities measured at fair value	$	3,307	$	(28)	$	(19,822)	$	(16,543)


	December 31, 2023
	Significant Other
	Quoted Prices in		Observable		Unobservable
	Active Markets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Short term investments	$	300	$	—	$	—	$	300
Other investments		—		—		1,197		1,197
Employee benefit plan investments		3,014		—		—		3,014
Interest rate swap		—		(1,750)		—		(1,750)
Alaska Communications redeemable common units		—		—		(11,063)		(11,063)
Alloy redeemable common units		—		—		(14,760)		(14,760)
Warrants on Alaska Communications redeemable common units		—		—		(249)		(249)
Total assets and liabilities measured at fair value	$	3,314	$	(1,750)	$	(24,875)	$	(23,311)

Other Investments

The Company holds investments in equity securities consisting of noncontrolling investments in privately held companies. The investments are accounted for using equity method accounting, the measurement alternative for investments without a readily determinable fair value, or fair value. The fair value investments are valued using Level 3 inputs and the Company used the income approach to fair value the investment. The inputs consisted of a discount rate and future cash flows calculated based on the investment attributes. A roll forward of the investments is below (in thousands):




	Investments without a readily determinable fair value		Fair value investments		Equity method investments		Total
Balance, December 31, 2023	$	41,710	$	1,197	$	—	$	42,907
Income recognized		—		64		—		64
Distributions		—		(330)		—		(330)
Balance, June 30, 2024	$	41,710	$	931	$	—	$	42,641

Balance, December 31, 2022	$	22,590	$	1,616	$	13,963	$	38,169
Income recognized		1,786		130		585		2,501
Contributions / (distributions)		425		(360)		630		695
Foreign currency gain		—		—		229		229
Balance, June 30, 2023	$	24,801	$	1,386	$	15,407	$	41,594

During the year ended December 31, 2023, the Company lost the ability to exert significant influence over its India solar investment. As a result, the Company transferred $16.3 million from equity method investments to investments without a readily determinable fair value and the accounting for the investment changed to the cost method from the equity method of accounting.

These investments are included with other assets on the consolidated balance sheets.

Redeemable Common Units and Warrants

The Company has issued redeemable common units, and warrants to purchase additional common units, in consolidated subsidiaries of the Company. The instruments are redeemable at the option of the holder. Both the common units and warrants to purchase common units are recorded at fair value in the Company’s financial statements. The common units are recorded in redeemable noncontrolling interest and the warrants are recorded in other liabilities on the Company’s balance sheets. The put options for the Alloy redeemable common units begin in November 2026. The put options for the Alaska Communications redeemable common units begin the earlier of a public offering or July 2028. The Company calculates the fair value of the instruments using a combination of market and discounted cash flows approaches with Level 3 inputs.

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 long-term debt is estimated using Level 2 inputs. At June 30, 2024, the fair value of long-term debt, including the current portion, was $583.7 million and its book value was $586.9 million. At December 31, 2023, the fair value of long-term debt, including the current portion, was $571.6 million and its book value was $562.9 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

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

GOVERNMENT SUPPORT AND SPECTRUM MATTERS - Construction (Details) - Network Connectivity for Eligible Communities $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Mobility Fund [Line Items]
Grants awarded	$ 100,149
New grants	0
Construction complete	0
Transferred grants	0
Grants awarded	$ 100,149

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2024

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

13. 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. Historically, the Company’s subsidiary, GTT, has been subject to other long-standing litigation proceedings and disputes in Guyana that have not yet been resolved. 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 matters currently pending will not have a material adverse effect on the Company’s financial position or results of operations.

Beginning in 2006, the National Frequency Management Unit (now the Telecommunications Agency, or the “NFMU/TA”) and GTT have been engaged in discussions regarding the amount of and methodology for calculation of spectrum fees payable by GTT in Guyana. Since that time, GTT has made payments of undisputed spectrum fees as amounts invoiced by the NFMU, and to its successor, the Telecommunications Authority (“TA”). There have been limited further discussions on the subject of a revised spectrum fee methodology with the TA.

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. Digicel filed counterclaims alleging that GTT has violated the terms of the interconnection agreement and Guyana laws. These suits, filed in 2010 and 2012, are currently pending in the Court of Appeals in Guyana, however, the Company cannot accurately predict at this time when the consolidated suit will reach a court of final determination.

GTT is also involved in several legal claims regarding its tax filings with the Guyana Revenue Authority (the “GRA”) dating back to 1991 regarding the deductibility of intercompany advisory fees as well as other tax assessments. GTT has maintained that it has no unpaid corporation tax due to the GRA and that any liability GTT might be found to have with respect to the disputed tax assessments would be offset in part by the amounts claimed with respect to rights ATN has pursuant to its agreement with the government of Guyana. GTT’s position has been upheld by various High Court rulings made in its favor including most recently in February 2024, and while all matters have been appealed by the GRA, only one remains pending for determination by the High Court.

In February 2020, the Company’s Alaska Communications subsidiary received a draft audit report from USAC in connection with USAC’s inquiry into Alaska Communications’ funding requests under the Rural Health Care Support Program for certain customers for the time period of July 2012 through June 2017. Alaska Communications also received a Letter of Inquiry on March 18, 2018, and subsequent follow up information requests, from the FCC Enforcement Bureau requesting historical information regarding Alaska Communications’ participation in the FCC’s Rural Health Care Support Program.

On May 8, 2024, we entered into a Consent Decree with the FCC Enforcement Bureau, regarding both the USAC and FCC Enforcement Bureau’s investigation and agreed to (i) pay a settlement amount of approximately $6.3 million, and (ii) enter into a three-year compliance agreement in connection with Alaska Communication’s continued participation in the RHC Program. At this time, we believe that we can comply with all of the terms of the compliance agreement.

The settlement amount of $6.3 million consists of a $5.3 million cash payment and the $1.0 million forgiveness of certain receivables, both of which have been accrued on the Company’s balance sheet as of June 30, 2024. As such, this settlement will not impact the statement of operations in future periods.

With respect to all of the foregoing unresolved matters, the Company believes that some adverse outcome is probable and has accordingly accrued $12.5 million as of June 30, 2024 for these and other potential liabilities arising in various claims, legal actions and regulatory proceedings arising in the ordinary course of business. The Company also faces contingencies that are reasonably possible to occur that cannot currently be estimated. It is the Company’s policy to expense costs associated with loss contingencies, including any related legal fees, as they are incurred.

LEASES - Narrative (Details)	Jun. 30, 2024
Minimum
LEASES
Operating lease, lease term	3 years
Finance lease, lease term	3 years
Maximum
LEASES
Operating lease, lease term	10 years
Finance lease, lease term	10 years

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

GOVERNMENT SUPPORT AND SPECTRUM MATTERS - Replace and Remove Program (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Mobility Fund [Line Items]
Beginning balance, Total spend	$ 64,388	$ 3,325
Amounts spent	47,654	17,705
Ending balance, Total spend	112,042	21,030
Beginning balance, Total reimbursements	(17,127)
Reimbursements received	(52,142)
Ending balance, Total reimbursements	(69,269)
Amount pending reimbursement	42,773	21,030
Capital Amount
Mobility Fund [Line Items]
Beginning balance, Total spend	49,262	1,836
Amounts spent	38,126	12,739
Ending balance, Total spend	87,388	14,575
Beginning balance, Total reimbursements	(12,773)
Reimbursements received	(41,421)
Ending balance, Total reimbursements	(54,194)
Amount pending reimbursement	33,194	14,575
Operating Amount
Mobility Fund [Line Items]
Beginning balance, Total spend	15,126	1,489
Amounts spent	9,528	4,966
Ending balance, Total spend	24,654	6,455
Beginning balance, Total reimbursements	(4,354)
Reimbursements received	(10,721)
Ending balance, Total reimbursements	(15,075)
Amount pending reimbursement	$ 9,579	$ 6,455

REVENUE RECOGNITION AND RECEIVABLES - Timing of Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
REVENUE RECOGNITION AND RECEIVABLES
Total revenue	$ 169,366	$ 173,438	$ 342,274	$ 345,996
Operating lease income	2,111	1,960	4,217	3,862
Government grant revenue	11,804	11,043	23,585	22,356
Total revenue	183,281	186,441	370,076	372,214
Services transferred over time
REVENUE RECOGNITION AND RECEIVABLES
Total revenue	162,100	167,060	328,703	333,812
Goods and services transferred at a point in time
REVENUE RECOGNITION AND RECEIVABLES
Total revenue	7,266	6,378	13,571	12,184
International Telecom
REVENUE RECOGNITION AND RECEIVABLES
Total revenue	93,889	90,511	185,483	179,449
Operating lease income	75	73	147	145
Government grant revenue	1,393	1,397	2,786	2,795
Total revenue	95,357	91,981	188,416	182,389
International Telecom \| Services transferred over time
REVENUE RECOGNITION AND RECEIVABLES
Total revenue	90,271	86,730	178,831	172,409
International Telecom \| Goods and services transferred at a point in time
REVENUE RECOGNITION AND RECEIVABLES
Total revenue	3,618	3,781	6,652	7,040
US Telecom
REVENUE RECOGNITION AND RECEIVABLES
Total revenue	75,477	82,927	156,791	166,547
Operating lease income	2,036	1,887	4,070	3,717
Government grant revenue	10,411	9,646	20,799	19,561
Total revenue	87,924	94,460	181,660	189,825
US Telecom \| Services transferred over time
REVENUE RECOGNITION AND RECEIVABLES
Total revenue	71,829	80,330	149,872	161,403
US Telecom \| Goods and services transferred at a point in time
REVENUE RECOGNITION AND RECEIVABLES
Total revenue	$ 3,648	$ 2,597	$ 6,919	$ 5,144

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479941/924-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-5

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-4

+ Details

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 48
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-48

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 6: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481687/323-10-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482907/825-10-50-28

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477314/942-235-S99-1

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483621/220-10-S99-2

+ Details

REVENUE RECOGNITION AND RECEIVABLES

6 Months Ended

Jun. 30, 2024

REVENUE RECOGNITION AND RECEIVABLES

REVENUE RECOGNITION AND RECEIVABLES

3. REVENUE RECOGNITION AND RECEIVABLES

Revenue Accounted for in Accordance with Other Guidance

The Company records revenue in accordance with ASC 606 from contracts with customers and ASC 842 from lease agreements, as well as government grants. Lease revenue recognized under ASC 842 is disclosed in Note 4 and government grant revenue is disclosed in Note 8.

Timing of Revenue Recognition

Revenue accounted for in accordance with ASC 606 consisted of the following for the periods presented below (in thousands):


	Three months ended June 30, 2024						Three months ended June 30, 2023
	International		US				International		US
	Telecom		Telecom		Total		Telecom		Telecom		Total
Services transferred over time	$	90,271	$	71,829	$	162,100	$	86,730	$	80,330	$	167,060
Goods and services transferred at a point in time		3,618		3,648		7,266		3,781		2,597		6,378
Total revenue accounted for under ASC 606	$	93,889	$	75,477	$	169,366	$	90,511	$	82,927	$	173,438
Operating lease income		75		2,036		2,111		73		1,887		1,960
Government grant revenue (1)		1,393		10,411		11,804		1,397		9,646		11,043
Total revenue	$	95,357	$	87,924	$	183,281	$	91,981	$	94,460	$	186,441


	Six months ended June 30, 2024						Six months ended June 30, 2023
	International		US				International		US
	Telecom		Telecom		Total		Telecom		Telecom		Total
Services transferred over time	$	178,831	$	149,872	$	328,703	$	172,409	$	161,403	$	333,812
Goods and services transferred at a point in time		6,652		6,919		13,571		7,040		5,144		12,184
Total revenue accounted for under ASC 606	$	185,483	$	156,791	$	342,274	$	179,449	$	166,547	$	345,996
Operating lease income		147		4,070		4,217		145		3,717		3,862
Government grant revenue (1)		2,786		20,799		23,585		2,795		19,561		22,356
Total revenue	$	188,416	$	181,660	$	370,076	$	182,389	$	189,825	$	372,214

(1)

Revenue recognized from CAF II, USF and RDOF programs. Refer to Note 8.

Contract Assets and Liabilities

The Company recognizes contract assets and liabilities on its balance sheet. Contract assets represent unbilled amounts typically resulting from consumer Mobility 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 the Company’s balance sheets.

Contract liabilities consist of advance payments and billings in excess of revenue recognized. Mobility and Fixed 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 Mobility services, sold to customers is recorded as deferred revenue prior to the commencement of services. Contract liabilities also include certain long term fixed business and carrier service customer contracts. The current portion of contract liabilities are recorded in advanced payments and deposits and the noncurrent portion is included in deferred revenue, long-term on the Company’s balance sheets.

In July 2019, the Company entered into a Network Build and Maintenance Agreement with AT&T Mobility, LLC (“AT&T”) that was subsequently amended through December 31, 2023 (the “FirstNet Agreement”). In connection with the FirstNet Agreement, the Company is building a portion of AT&T’s network for the First Responder Network Authority in or near the Company’s current operating areas in the western United States (the “FirstNet Transaction”). The FirstNet Transaction includes construction and service performance obligations. The current portion of receivables under this agreement is recorded in customer receivable and the long-term portion is recorded in customer receivable long-term on the Company’s balance sheet.

In May 2023, the Company amended its current roaming agreement and entered into a carrier management services agreement with Verizon Wireless (the “Verizon CMS Agreement”). The transaction includes service performance obligations under which revenue is recognized over time. The Company allocates the transaction price of these agreements to each performance obligation based on the relative standalone selling price of each performance obligation in the contract. The standalone selling price is the estimated price the Company would charge for the good or service in a separate transaction with similar customers in similar circumstances.

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


	June 30, 2024		December 31, 2023			$ Change	% Change
Contract asset – current	$	3,701	$	3,616	$	85		2.4	%
Contract asset – noncurrent		5,149		5,509		(360)		(6.5)	%
Contract liability – current		(32,283)		(30,990)		(1,293)		4.2	%
Contract liability – noncurrent		(59,373)		(64,035)		4,662		(7.3)	%
Net contract liability	$	(82,806)	$	(85,900)	$	3,094		(3.6)	%

The decrease in the Company’s net contract liability was due to the timing of customer prepayments, contract billings, and recognition of deferred revenue. During the six months ended June 30, 2024, the Company recognized revenue of $22.2 million related to its December 31, 2023 contract liability and amortized $2.5 million of the December 31, 2023 contract asset to revenue.

Contract Acquisition Costs

The June 30, 2024 and 2023 balance sheets include contract acquisition costs of $10.9 million and $9.7 million, respectively, in other assets. During the three and six months ended June 30, 2024, the Company amortized $1.7 million and $3.3 million, respectively, of contract acquisition costs. During the three and six months ended June 30, 2023, the Company amortized $1.6 million and $2.7 million, respectively, of contract acquisition costs.

Remaining Performance Obligations

Remaining performance obligations represent the transaction price allocated to unsatisfied performance obligations of certain multiyear Mobility and Fixed communication services contracts, Managed Services contracts, and the Company’s Carrier Services construction and service contracts. The transaction price allocated to unsatisfied performance obligations was $579 million at June 30, 2024. The Company expects to satisfy approximately 40% of the remaining performance obligations and recognize the transaction price within 24 months and approximately $60 million annually from 2026 through 2031.

The Company has certain Mobility, Fixed, and Carrier Services contracts where the transaction price is allocated to remaining performance obligations. However, the Company omits these contracts from its disclosure by applying the right to invoice, one year or less, and wholly unsatisfied performance obligation practical expedients.

Disaggregation

The Company's revenue is presented on a disaggregated basis in Note 12 based on an evaluation of disclosures outside the financial statements, information regularly reviewed by the chief operating decision makers for evaluating the financial performance of operating segments and other information that is used for performance evaluation and resource allocations. This includes revenue from Communication Services, Construction, and Other revenue. Communication Services revenue is further disaggregated into business and consumer Mobility, business and consumer Fixed, Carrier Services, and Other services. Other revenue is further disaggregated into Managed Services revenue.

Receivables

The Company records an estimate of future credit losses in conjunction with the revenue transaction based on the information available including historical experience and management’s expectations of future conditions. Those estimates are updated as additional information becomes available. The Company’s allowance for uncollectible accounts receivable is based on management’s assessment of the collectability of assets pooled together with similar risk characteristics.

The Company had gross accounts receivable of $114.8 million and an allowance for credit losses of $16.4 million as of June 30, 2024. In addition, the Company had receivables under the FirstNet Agreement totaling $51.5 million, of which $43.8 million was long-term. At December 31, 2023, the Company had gross accounts receivable of $104.4 million and an allowance for credit losses of $16.4 million and a receivable under the FirstNet Agreement totaling $52.9 million, of which $45.7 million was long-term. The Company monitors receivables through the use of historical operating data adjusted for the expectation of future performance as appropriate. Activity in the allowance for credit losses is below (in thousands):


	Six months ended
	June 30, 2024		June 30, 2023

Balance at beginning of period	$	16,362	$	15,171
Current period provision for expected losses		2,855		2,463
Write-offs charged against the allowance		(2,918)		(1,878)
Recoveries collected		133		188
Balance at end of period	$	16,432	$	15,944

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

ORGANIZATION AND BUSINESS OPERATIONS - Restructuring Expenses (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		18 Months Ended
	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024
Restructuring Expense
Restructuring Charges, Total	$ 370	$ 1,190	$ 3,257	$ 12,418
Employee termination benefits				6,641
Contract termination costs				5,777
Amount of additional expected expenses		0		0
Restructure costs paid		4,800
Total restructure costs paid				10,500
Gain on lease termination				300
Restructuring costs remain accrued		$ 2,200		2,200
Right of use assets terminated				5,600
Lease liabilities terminated				5,900
US Telecom
Restructuring Expense
Restructuring Charges, Total				7,737
Employee termination benefits				1,960
Contract termination costs				5,777
International Telecom
Restructuring Expense
Restructuring Charges, Total				4,681
Employee termination benefits				$ 4,681

ORGANIZATION AND BUSINESS OPERATIONS (Details)	6 Months Ended
ORGANIZATION AND BUSINESS OPERATIONS (Details)	Jun. 30, 2024 segment
ORGANIZATION AND BUSINESS OPERATIONS
Number of operating segments	2

LEASES - Maturities of lease liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Lessor, Lease, Description [Line Items]
2024 (excluding the six months ended June 30, 2024)	$ 9,353		$ 9,353
Year 1	17,531		17,531		$ 18,048
Year 2	13,288		13,288		16,022
Year 3	10,437		10,437		11,755
Year 4	8,263		8,263		9,327
Year 5					7,807
Thereafter	83,250		83,250
Thereafter					80,637
Total lease payments	142,122		142,122		143,596
Less imputed interest	(56,683)		(56,683)		(57,133)
Total	$ 85,439		$ 85,439		$ 86,463
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Lease Liability, Current, Lease Liability, Noncurrent		Lease Liability, Current, Lease Liability, Noncurrent		Lease Liability, Current, Lease Liability, Noncurrent
Finance lease liability
2024 (excluding the six months ended June 30, 2024)	$ 1,077		$ 1,077
Year 1	1,529		1,529		$ 2,030
Year 2	746		746		1,488
Year 3	704		704		601
Year 4	551		551		534
Year 5					505
Thereafter					2,145
Thereafter	2,145		2,145
Total lease payments	6,752		6,752		7,303
Less imputed interest	(1,525)		(1,525)		(1,662)
Total	$ 5,227		$ 5,227		$ 5,641
Finance Lease, Liability, Statement of Financial Position [Extensible List]	Lease Liability, Current, Lease Liability, Noncurrent		Lease Liability, Current, Lease Liability, Noncurrent		Lease Liability, Current, Lease Liability, Noncurrent
Lease income	$ 2,111	$ 1,960	$ 4,217	$ 3,862
Maturities of future undiscounted lease payments
2024 (excluding the six months ended June 30, 2024)	3,669		3,669
2025	7,062		7,062
2026	6,730		6,730
2027	5,538		5,538
2028	5,157		5,157
Thereafter	13,262		13,262
Total future lease payments	41,418		41,418
Network asset
Finance lease liability
Lease income	$ 2,100	$ 2,000	$ 4,200	$ 3,900

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowances	$ 16.4	$ 16.4
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	17,879,110	17,702,476
Common stock, shares outstanding	15,114,216	15,421,481
Treasury stock, shares	2,764,894	2,280,995

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net Income (loss)	$ 11,337	$ (661)	$ 3,391	$ (7,717)
Other comprehensive income (loss):
Foreign currency translation adjustment net of tax expense of $0 and $0 million		118		229
Reclassification of loss on pension settlement, net of $(0.1) and $(0.1) million of tax		(174)		195
Unrealized gain on derivatives net of tax expense of $(0.1) million and $(0.6) million	290		1,722
Other comprehensive income (loss), net of tax	290	(56)	1,722	424
Comprehensive income (loss)	11,627	(717)	5,113	(7,293)
Less: Comprehensive income (loss) attributable to noncontrolling interests	(2,334)	1,428	(701)	2,599
Comprehensive income (loss) attributable to ATN International, Inc.	$ 9,293	$ 711	$ 4,412	$ (4,694)

ORGANIZATION AND BUSINESS OPERATIONS

6 Months Ended

Jun. 30, 2024

ORGANIZATION AND BUSINESS OPERATIONS

ORGANIZATION AND BUSINESS OPERATIONS

1.ORGANIZATION AND BUSINESS OPERATIONS

The Company is a leading provider of digital infrastructure and communications services with a focus on rural and remote markets in the United States, and internationally, including Bermuda and the Caribbean region.

The Company has developed significant operational expertise and resources that it uses to augment its capabilities in its local markets. With this support, the Company’s operating subsidiaries are able to improve their quality of service with greater economies of scale and expertise than would typically be available in the size markets they operate in. The Company provides management, technical, financial, regulatory, and marketing services to its operating subsidiaries and typically receives a management fee calculated as a percentage of their revenues, which is eliminated in consolidation. The Company also actively evaluates investment opportunities and other strategic transactions, both domestic and international, and generally looks for those that it believes fit the Company’s profile of telecommunications businesses and have the potential to complement the Company’s “First-to-Fiber” and “Glass & Steel™” approach in markets while keeping a focus on generating excess operating cash flows over extended periods of time. The Company uses the cash generated from its operations to maintain an appropriate ratio of debt and cash on hand and to fund growth and capital expenditures, to return cash to its stockholders through dividends or stock repurchases, and make strategic investments or acquisitions.

For further information about the Company’s financial segments and geographical information about its operating revenues and assets, see Notes 1 and 12 to the Consolidated Financial Statements included in this Report.

As of June 30, 2024, the Company offered the following types of services to its customers:

●

Mobile Telecommunications Services. The Company offers mobile communications services over its wireless networks and related equipment, such as handsets, to both business and consumer customers.

●

Fixed Telecommunications Services. The Company provides fixed data and voice telecommunications services and related equipment, such as modems, to business and consumer customers. These services include consumer broadband and high-speed data solutions for businesses. For some markets, fixed services also include video services and revenue derived from support under certain government programs.

●

Carrier Telecommunication Services. The Company delivers services to other telecommunications providers including the leasing of critical network infrastructure such as tower and transport facilities, wholesale roaming and long distance voice services, site maintenance and international long-distance services.

●

Managed Services. The Company provides information technology services such as network, application, infrastructure and hosting services to both its business and consumer customers to complement its fixed services in its existing markets.

Through June 30, 2024, the Company identified two operating segments to manage and review its operations and to facilitate investor presentations of its results. These two operating segments are as follows:

●

International Telecom. In the Company’s international markets, it offers fixed services, mobility services, carrier services and managed services to customers in Bermuda, the Cayman Islands, Guyana and the US Virgin Islands.

●

US Telecom. In the United States, the Company offers fixed services, carrier services, and managed

services to business customers and consumers in Alaska and the western United States. As of June 30, 2024 the Company provided mobility services to retail customers in the western United States.


International Telecom			US Telecom
Services	Markets	Tradenames	Services	Markets	Tradenames
Mobility Services	Bermuda, Guyana, US Virgin Islands	One, GTT, Viya, Brava	Mobility Services	United States (rural markets)	Choice, Choice NTUA Wireless
Fixed Services	Bermuda, Cayman Islands, Guyana, US Virgin Islands	One, Logic, GTT, Viya, Brava	Fixed Services	United States	Alaska Communications, Commnet, Choice, Choice NTUA Wireless, Sacred Wind Communications, Ethos, Deploycom
Carrier Services	Bermuda, Guyana, US Virgin Islands	One, Essextel, GTT, Viya	Carrier Services	United States	Alaska Communications, Commnet, Sacred Wind Communications
Managed Services	Bermuda, Cayman Islands, US Virgin Islands, Guyana	Fireminds, One, Logic, GTT, Viya, Brava	Managed Services	United States	Alaska Communications, Choice

For further information about the Company’s financial segments and geographical information about its operating revenues and assets, see Note 12 to the Unaudited Condensed Consolidated Financial Statements included in this Report.

Restructuring Expense

In order to reduce the Company’s US Telecom and International Telecom segments’ cost structure, the Company has incurred, since the first quarter of 2023, certain network termination and reduction in force costs totaling $12.4 million through June 30, 2024. No further expenses are currently expected under this restructuring plan. Of this amount, $1.2 million and $3.3 million were recorded during the six months ended June 30, 2024 and 2023, respectively. A summary of the costs, since the first quarter of 2023, is below (in thousands):


		US		International
		Telecom		Telecom		Total
Employee termination benefits	$	1,960	$	4,681	$	6,641
Contract termination costs		5,777		—		5,777
Total	$	7,737	$	4,681	$	12,418

The charge is recorded in Restructuring Expenses on the Company’s Consolidated Statements of Operations. During the six months ended June 30, 2024, the Company paid $4.8 million of the restructuring costs. In total, since the first quarter of 2023 and through June 30, 2024, the Company paid $10.5 million, recorded a gain of $0.3 million on lease termination, and $2.2 million of the restructuring costs remain accrued. In conjunction with the restructuring, the Company terminated certain leases and removed $5.6 million of lease right of use assets and $5.9 million of lease liabilities from its balance sheet.

Asset Disposition

During the three months ended June 30, 2024, the Company’s International Telecom segment disposed of a non-core fixed asset recording a gain of $15.8 million on the transaction. The Company received cash proceeds of $17.8 million which was offset by the asset’s book value of $0.5 million and $1.5 million of transaction costs.

BASIS OF PRESENTATION (Policies)	6 Months Ended
BASIS OF PRESENTATION (Policies)	Jun. 30, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 the periods described therein. 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, 2023, filed with the SEC on March 15, 2024. The condensed consolidated financial statements include the accounts of the Company, its subsidiaries in which the Company holds controlling interests 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	Recent Accounting Pronouncements In December 2023, the FASB released ASU 2023-09, titled "Enhancements to Income Tax Disclosures," with the aim of improving the clarity and usefulness of income tax disclosures. The update focuses primarily on enhancing disclosures related to rate reconciliation and income taxes paid. ASU 2023-09 becomes effective for annual reporting periods starting after December 15, 2024, with early adoption permitted. While the changes prescribed by ASU 2023-09 are implemented prospectively, retrospective application is also allowed. The Company has chosen not to early adopt this standard and is currently assessing its potential impact on our consolidated financial statements and accompanying disclosures. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (ASU 2023-07), which requires that a public entity disclose, on an interim and annual basis, significant segment expense categories and amounts that are regularly provided to its chief operating decision maker (CODM) and included in each reported measure of segment profit or loss. An entity must also disclose, by reportable segment, the amount and composition of other expenses. The standard requires an entity to disclose the title and position of its CODM and explain how the CODM uses these reported measures in assessing segment performance and determining how to allocate resources. ASU 2023-07 will be effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 31, 2024, with retrospective application. The standard allows early adoption of these requirements and we are currently evaluating the disclosure impacts of our adoption.

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS (Tables)

6 Months Ended

Jun. 30, 2024

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

Schedule of computation of basic and diluted earnings per share

The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Numerator:
Net income (loss) attributable to ATN International, Inc. stockholders- Basic		9,003		767		2,690		(5,118)
Less: Preferred dividends		(1,376)		(1,260)		(2,727)		(2,306)
Net income (loss) attributable to ATN International, Inc. common stockholders- Diluted	$	7,627	$	(493)	$	(37)	$	(7,424)

Denominator:
Weighted-average shares outstanding- Basic		15,254		15,719		15,346		15,726
Weighted-average shares outstanding- Diluted		15,255		15,719		15,346		15,726

Schedule of rollforward activity related to the Company's redeemable noncontrolling interests

The following table provides a roll forward of the activity related to the Company’s redeemable noncontrolling interests for the six months ended June 30, 2024 and 2023 (in thousands):


	Redeemable Preferred Units		Redeemable Common Units		Total Redeemable Noncontrolling Interests
Balance, December 31, 2023	$	60,094	$	25,823	$	85,917
Accrued preferred dividend		2,727		—		2,727
Allocated net loss		—		(6,176)		(6,176)
Change in fair value		—		857		857
Balance, June 30, 2024	$	62,821	$	20,504	$	83,325


	Redeemable Preferred Units		Redeemable Common Units		Total Redeemable Noncontrolling Interests
Balance, December 31, 2022	$	55,152	$	37,317	$	92,469
Accrued preferred dividend		2,306		—		2,306
Allocated net loss		—		(6,170)		(6,170)
Change in fair value		—		5,879		5,879
Balance, June 30, 2023	$	57,458	$	37,026	$	94,484

REVENUE RECOGNITION AND RECEIVABLES - Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounts Receivable
Gross accounts receivable	$ 114,800	$ 104,400
Customer receivable - long term	43,761	45,676
Allowance for credit loss	16,400	16,400
FirstNet agreement
Accounts Receivable
Customer receivable	51,500	52,900
Customer receivable - long term	$ 43,800	$ 45,700

USE OF ESTIMATES

6 Months Ended

Jun. 30, 2024

USE OF ESTIMATES

USE OF ESTIMATES

5. 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 credit losses on trade receivables, 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 and income taxes. Actual results could differ significantly from those estimates.

RETIREMENT PLANS - Net Periodic Pension Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Components of the plan's net periodic pension cost
Settlements				$ 369
Pension benefits
Components of the plan's net periodic pension cost
Service cost	$ 22	$ 38	$ 45	76
Interest cost	824	593	1,649	1,187
Expected return on plan assets	(729)	(953)	(1,459)	(1,905)
Amortization of unrecognized actuarial gain	(11)		(21)
Settlements				369
Net periodic pension expense (benefit)	106	(322)	214	(273)
Postretirement benefits
Components of the plan's net periodic pension cost
Service cost	16	31	33	62
Interest cost	45	35	90	70
Amortization of unrecognized actuarial gain	(28)		(56)
Net periodic pension expense (benefit)	$ 33	$ 66	$ 67	$ 132

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

6 Months Ended

Jun. 30, 2024

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

11. EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS

Earnings Per Share

The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Numerator:
Net income (loss) attributable to ATN International, Inc. stockholders- Basic		9,003		767		2,690		(5,118)
Less: Preferred dividends		(1,376)		(1,260)		(2,727)		(2,306)
Net income (loss) attributable to ATN International, Inc. common stockholders- Diluted	$	7,627	$	(493)	$	(37)	$	(7,424)

Denominator:
Weighted-average shares outstanding- Basic		15,254		15,719		15,346		15,726
Weighted-average shares outstanding- Diluted		15,255		15,719		15,346		15,726

Redeemable Noncontrolling Interests

In connection with certain acquisitions, the Company accounts for third-party non-controlling minority investments as redeemable noncontrolling interests, which consist of both redeemable common and, in some instances, preferred units, in its consolidated financial statements.

The common units contain put options allowing the holder to sell at a future date, the common units to a subsidiary of the Company at the then fair market value. The common units participate in the earnings and losses of the subsidiaries and are allocated their applicable share of earnings and losses. After the allocation of earnings and losses, the Company estimates the fair value of the common units and adjusts the book value of the common units to that estimated fair value.

The preferred units contain put options allowing the holder to sell at a future date, the preferred units to a subsidiary of the Company at a fixed price equal to face value of the units plus unpaid dividends. The preferred units hold a distribution preference over common units and carry a fixed dividend rate.

The put options for both the common and preferred units, if any, are nonrecourse to the Company. The put options for the Alloy common units are exercisable beginning in 2026 and the put options for the Alaska Communications common and preferred units are exercisable at the earlier of a future initial public offering of the subsidiary or 2028.

For the three months ended June 30, 2024 and 2023, the Company allocated losses of $2.7 million and $3.4 million, respectively, to the redeemable common units representing their proportionate share of operating losses. For each of the six month periods ended June 30, 2024 and 2023, the Company allocated losses of $6.2 million to the redeemable common units representing their proportionate share of operating losses. The Company then compared the book value of the common units to the fair value and the fair value exceeded the book value. As a result, the book value was increased by $0.9 million and $5.9 million during the six months ended June 30, 2024 and 2023, respectively.

The following table provides a roll forward of the activity related to the Company’s redeemable noncontrolling interests for the six months ended June 30, 2024 and 2023 (in thousands):


	Redeemable Preferred Units		Redeemable Common Units		Total Redeemable Noncontrolling Interests
Balance, December 31, 2023	$	60,094	$	25,823	$	85,917
Accrued preferred dividend		2,727		—		2,727
Allocated net loss		—		(6,176)		(6,176)
Change in fair value		—		857		857
Balance, June 30, 2024	$	62,821	$	20,504	$	83,325


	Redeemable Preferred Units		Redeemable Common Units		Total Redeemable Noncontrolling Interests
Balance, December 31, 2022	$	55,152	$	37,317	$	92,469
Accrued preferred dividend		2,306		—		2,306
Allocated net loss		—		(6,170)		(6,170)
Change in fair value		—		5,879		5,879
Balance, June 30, 2023	$	57,458	$	37,026	$	94,484

LONG-TERM DEBT (Details) $ in Thousands					1 Months Ended	6 Months Ended
LONG-TERM DEBT (Details) $ in Thousands	Jul. 13, 2023 USD ($)	Jun. 15, 2022 USD ($)	Jul. 22, 2021 USD ($)	Apr. 10, 2019 USD ($)	Oct. 31, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Nov. 30, 2023 USD ($) derivative	Dec. 23, 2022 USD ($)	Nov. 07, 2022 USD ($)	Oct. 12, 2022 USD ($)	May 05, 2022	Mar. 26, 2020 USD ($)	Dec. 31, 2016 USD ($)	Jul. 01, 2016 USD ($)
Long-term debt
Revolving credit facility - borrowings						$ 75,000	$ 88,273
Long-term Debt						540,835		$ 516,870
Current portion of long-term debt						16,573		24,290
Long-term debt, excluding current portion						524,262		492,580
Current portion of customer receivable credit facility						7,659		7,110
Alaska credit facility \| Period of second quarter of 2024
Long-term debt
Net total leverage ratio			3.75
Alaska credit facility \| Interest rate swap
Long-term debt
Fair value of asset (liability)						100		(1,200)
Number of derivative instruments \| derivative									2
Alaska credit facility \| Alaska communications
Long-term debt
Financing costs						7,300
Unamortized financing costs						$ 3,100
Consolidated EBITDA			12 months
Net total leverage ratio			4.00
Fixed charge coverage ratio			1.25
Alaska credit facility \| Alaska communications \| Period of fourth quarter of 2023 To third quarter 2024
Long-term debt
Periodic payment, principal			$ 1,400
Alaska credit facility \| Alaska communications \| Debt Instrument, From Fourth Quarter of 2024 To Third Quarter of 2026
Long-term debt
Periodic payment, principal			$ 2,900
Alaska credit facility \| SOFR \| Interest rate swap
Long-term debt
Notional amount									$ 200,000
Alaska credit facility \| SOFR \| Interest rate swap One
Long-term debt
Interest rate (in percent)									4.8695%
Alaska credit facility \| SOFR \| Interest rate swap Two
Long-term debt
Interest rate (in percent)									4.898%
Alaska credit facility \| SOFR \| Alaska communications
Long-term debt
Basis spread on variable rate (as a percent)			0.10%
Alaska credit facility \| Base rate \| Alaska communications
Long-term debt
Basis spread on variable rate (as a percent)			1.00%
Alaska credit facility \| Minimum \| SOFR \| Alaska communications
Long-term debt
Basis spread on variable rate (as a percent)			3.00%
Alaska credit facility \| Maximum \| SOFR \| Alaska communications
Long-term debt
Basis spread on variable rate (as a percent)			4.00%
GTT Credit Facility
Long-term debt
Term of debt						5 years
Borrowings outstanding						$ 0
Fixed interest rate						7.50%
GTT Term Loan Facility
Long-term debt
Maximum borrowing capacity												$ 2,900
GTT Overdraft Facility
Long-term debt
Maximum borrowing capacity												$ 5,700
Viya Debt
Long-term debt
Net leverage ratio													7.0			3.5
Financing costs															$ 900
Unamortized financing costs						$ 200
Term loan assumed																$ 60,000
Fixed interest rate															4.00%	4.00%
Outstanding debt						60,000
Revolver loan \| 2019 CoBank Credit Facility
Long-term debt
Maximum borrowing capacity				$ 200,000
Repayments of debt	$ 139,500
Revolver loan \| 2019 CoBank Credit Facility \| Minimum
Long-term debt
Commitment fee (as a percent)				0.15%
Revolver loan \| 2019 CoBank Credit Facility \| Minimum \| Base rate
Long-term debt
Basis spread on variable rate (as a percent)				0.25%
Revolver loan \| 2019 CoBank Credit Facility \| Minimum \| LIBOR
Long-term debt
Basis spread on variable rate (as a percent)				1.25%
Revolver loan \| 2019 CoBank Credit Facility \| Maximum
Long-term debt
Commitment fee (as a percent)				0.375%
Revolver loan \| 2019 CoBank Credit Facility \| Maximum \| Base rate
Long-term debt
Basis spread on variable rate (as a percent)				1.25%
Revolver loan \| 2019 CoBank Credit Facility \| Maximum \| LIBOR
Long-term debt
Basis spread on variable rate (as a percent)				2.25%
Revolver loan \| Alaska credit facility \| Alaska communications
Long-term debt
Maximum borrowing capacity										$ 75,000
Revolving credit facility - borrowings						49,500
Borrowings outstanding						225,700
Remaining borrowing capacity						25,500
Letter of credit sub-facility
Long-term debt
Borrowings outstanding						30,900
Letter of credit sub-facility \| 2023 CoBank Credit Facility
Long-term debt
Maximum borrowing capacity	25,000
Letter of credit sub-facility \| 2019 CoBank Credit Facility
Long-term debt
Maximum borrowing capacity				$ 75,000
Swingline sub-facility \| 2023 CoBank Credit Facility
Long-term debt
Maximum borrowing capacity	$ 20,000
Base rate before one-week or one-month LIBOR (as a percent)	1.00%
Swingline sub-facility \| 2023 CoBank Credit Facility \| Federal Funds Effective Rate
Long-term debt
Basis spread on variable rate (as a percent)	0.50%
Swingline sub-facility \| 2019 CoBank Credit Facility
Long-term debt
Maximum borrowing capacity				$ 10,000
Base rate before one-week or one-month LIBOR (as a percent)				1.00%
Swingline sub-facility \| 2019 CoBank Credit Facility \| Federal Funds Effective Rate
Long-term debt
Basis spread on variable rate (as a percent)				0.50%
Term loans \| Alaska credit facility \| Alaska communications
Long-term debt
Long-term Debt										$ 230,000
2023 CoBank Credit Facility
Long-term debt
Financing costs						4,300
Unamortized financing costs						3,500
2023 CoBank Credit Facility \| 2023 CoBank Credit Facility \| Interest rate swap
Long-term debt
Derivative, Term of debt					2 years
Notional amount					$ 50,000
Fair value of asset (liability)						(100)		$ (500)
2023 CoBank Credit Facility \| 2023 CoBank Credit Facility \| SOFR \| Interest rate swap
Long-term debt
Interest rate (in percent)					4.896%
2023 CoBank Credit Facility \| 2023 CoBank Credit Facility \| Minimum
Long-term debt
Commitment fee (as a percent)	0.25%
2023 CoBank Credit Facility \| 2023 CoBank Credit Facility \| Maximum
Long-term debt
Commitment fee (as a percent)	0.50%
2023 CoBank Revolving Loan \| 2023 CoBank Credit Facility
Long-term debt
Term of debt	5 years
Maximum borrowing capacity	$ 170,000
Revolving credit facility - borrowings	$ 13,600
Borrowings outstanding						58,600
Remaining borrowing capacity						111,400
2023 CoBank Revolving Loan \| 2023 CoBank Credit Facility \| Minimum \| SOFR
Long-term debt
Basis spread on variable rate (as a percent)	1.75%
2023 CoBank Revolving Loan \| 2023 CoBank Credit Facility \| Minimum \| Base rate
Long-term debt
Basis spread on variable rate (as a percent)	0.75%
2023 CoBank Revolving Loan \| 2023 CoBank Credit Facility \| Maximum
Long-term debt
Net leverage ratio	3.25
2023 CoBank Revolving Loan \| 2023 CoBank Credit Facility \| Maximum \| SOFR
Long-term debt
Basis spread on variable rate (as a percent)	3.50%
2023 CoBank Revolving Loan \| 2023 CoBank Credit Facility \| Maximum \| Base rate
Long-term debt
Basis spread on variable rate (as a percent)	2.50%
2023 CoBank Term Loan \| 2023 CoBank Credit Facility
Long-term debt
Term of debt	6 years
Face amount of debt	$ 130,000
Borrowings outstanding						127,600
2023 CoBank Term Loan \| 2023 CoBank Credit Facility \| Minimum \| SOFR
Long-term debt
Basis spread on variable rate (as a percent)	2.00%
2023 CoBank Term Loan \| 2023 CoBank Credit Facility \| Minimum \| Base rate
Long-term debt
Basis spread on variable rate (as a percent)	1.00%
2023 CoBank Term Loan \| 2023 CoBank Credit Facility \| Maximum \| SOFR
Long-term debt
Basis spread on variable rate (as a percent)	3.75%
2023 CoBank Term Loan \| 2023 CoBank Credit Facility \| Maximum \| Base rate
Long-term debt
Basis spread on variable rate (as a percent)	2.75%
Incremental term loans \| Alaska credit facility \| Minimum \| Alaska communications
Long-term debt
Maximum borrowing capacity			$ 70,000
Secured delayed draw term loan \| Alaska Term Facility \| Alaska communications
Long-term debt
Fixed charge coverage ratio		4.0
Maximum borrowing capacity		$ 7,500
Senior secured delayed draw term loan \| Receivable credit facility
Long-term debt
Maximum borrowing capacity														$ 75,000
Financing costs														$ 800
Unamortized financing costs						400
Borrowings outstanding						46,500
Remaining borrowing capacity						11,300
Current portion of customer receivable credit facility						7,700
Senior secured delayed draw term loan \| Sacred Wind Term Debt
Long-term debt
Long-term Debt						26,600					$ 31,600
Current portion of long-term debt						3,300
Long-term debt, excluding current portion						$ 23,300
Senior secured delayed draw term loan \| Sacred Wind Term Debt \| Minimum
Long-term debt
Fixed interest rate						0.88%
Senior secured delayed draw term loan \| Sacred Wind Term Debt \| Maximum
Long-term debt
Fixed interest rate						5.00%

GOVERNMENT SUPPORT AND SPECTRUM MATTERS (Tables)

6 Months Ended

Jun. 30, 2024

Disaggregation of Revenue [Line Items]

Summary of revenues

Revenue accounted for in accordance with ASC 606 consisted of the following for the periods presented below (in thousands):


	Three months ended June 30, 2024						Three months ended June 30, 2023
	International		US				International		US
	Telecom		Telecom		Total		Telecom		Telecom		Total
Services transferred over time	$	90,271	$	71,829	$	162,100	$	86,730	$	80,330	$	167,060
Goods and services transferred at a point in time		3,618		3,648		7,266		3,781		2,597		6,378
Total revenue accounted for under ASC 606	$	93,889	$	75,477	$	169,366	$	90,511	$	82,927	$	173,438
Operating lease income		75		2,036		2,111		73		1,887		1,960
Government grant revenue (1)		1,393		10,411		11,804		1,397		9,646		11,043
Total revenue	$	95,357	$	87,924	$	183,281	$	91,981	$	94,460	$	186,441


	Six months ended June 30, 2024						Six months ended June 30, 2023
	International		US				International		US
	Telecom		Telecom		Total		Telecom		Telecom		Total
Services transferred over time	$	178,831	$	149,872	$	328,703	$	172,409	$	161,403	$	333,812
Goods and services transferred at a point in time		6,652		6,919		13,571		7,040		5,144		12,184
Total revenue accounted for under ASC 606	$	185,483	$	156,791	$	342,274	$	179,449	$	166,547	$	345,996
Operating lease income		147		4,070		4,217		145		3,717		3,862
Government grant revenue (1)		2,786		20,799		23,585		2,795		19,561		22,356
Total revenue	$	188,416	$	181,660	$	370,076	$	182,389	$	189,825	$	372,214

(1)

Revenue recognized from CAF II, USF and RDOF programs. Refer to Note 8.

Network Connectivity for Eligible Communities

Disaggregation of Revenue [Line Items]

Schedule of grant funds


	Amount
Grants awarded, December 31, 2023	$	100,149
New grants		—
Construction complete		—
Transferred grants		—
Grants awarded, June 30, 2024	$	100,149

Remove And Replace Program

Disaggregation of Revenue [Line Items]

Schedule of grant funds

A summary of the amounts spent and reimbursed under the Replace and Remove Program is below (in thousands):


	Capital		Operating		Total

Total spend, December 31, 2023	$	49,262	$	15,126	$	64,388
Amounts spent		38,126		9,528		47,654
Total spend, June 30, 2024	$	87,388	$	24,654	$	112,042

Total reimbursements, December 31, 2023	$	(12,773)	$	(4,354)	$	(17,127)
Reimbursements received		(41,421)		(10,721)		(52,142)
Total reimbursements, June 30, 2024	$	(54,194)	$	(15,075)	$	(69,269)

Amount pending reimbursement	$	33,194	$	9,579	$	42,773


	Capital		Operating		Total

Total spend, December 31, 2022	$	1,836	$	1,489	$	3,325
Amounts spent		12,739		4,966		17,705
Total spend, June 30, 2023	$	14,575	$	6,455	$	21,030

Amount pending reimbursement	$	14,575	$	6,455	$	21,030

Communication services

Disaggregation of Revenue [Line Items]

Summary of revenues

The Company recorded the amounts below as communication services revenue for the reported periods (in thousands):


	Three months ended						Three months ended
	June 30, 2024						June 30, 2023

	US Telecom		International Telecom		Total		US Telecom		International Telecom		Total

High cost support	$	3,483	$	1,393	$	4,876	$	2,222	$	1,397	$	3,619
CAF II		6,784		—		6,784		6,815		—		6,815
RDOF		145		—		145		608		—		608
ECF		498		—		498		6,813		—		6,813
RHC		3,682		—		3,682		2,887		—		2,887
Other		1,707		155		1,862		4,668		5		4,673
Total	$	16,299	$	1,548	$	17,847	$	24,013	$	1,402	$	25,415


	Six months ended						Six months ended
	June 30, 2024						June 30, 2023

	US Telecom		International Telecom		Total		US Telecom		International Telecom		Total

High cost support	$	6,937	$	2,786	$	9,723	$	4,716	$	2,795	$	7,511
CAF II		13,571		—		13,571		13,630		—		13,630
RDOF		290		—		290		1,216		—		1,216
ECF		7,312		—		7,312		14,880		—		14,880
RHC		7,119		—		7,119		5,787		—		5,787
Other		8,407		470		8,877		9,361		9		9,370
Total	$	43,636	$	3,256	$	46,892	$	49,590	$	2,804	$	52,394

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

REVENUE RECOGNITION AND RECEIVABLES - Allowance for Credit Losses Roll forward (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
REVENUE RECOGNITION AND RECEIVABLES
Balance at beginning of period	$ 16,362	$ 15,171
Current period provision for expected losses	2,855	2,463
Write-offs charged against the allowance	(2,918)	(1,878)
Recoveries collected	133	188
Balance at end of period	$ 16,432	$ 15,944

FAIR VALUE MEASUREMENTS AND INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2024

FAIR VALUE MEASUREMENTS AND INVESTMENTS

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 June 30, 2024 and December 31, 2023 are summarized as follows (in thousands):


	June 30, 2024
	Significant Other
	Quoted Prices in		Observable		Unobservable
	Active Markets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Short term investments	$	300	$	—	$	—	$	300
Other investments		—		—		931		931
Employee benefit plan investments		3,007		—		—		3,007
Interest rate swap		—		(28)		—		(28)
Alaska Communications redeemable common units		—		—		(5,744)		(5,744)
Alloy redeemable common units		—		—		(14,760)		(14,760)
Warrants on Alaska Communications redeemable common units		—		—		(249)		(249)
Total assets and liabilities measured at fair value	$	3,307	$	(28)	$	(19,822)	$	(16,543)


	December 31, 2023
	Significant Other
	Quoted Prices in		Observable		Unobservable
	Active Markets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Short term investments	$	300	$	—	$	—	$	300
Other investments		—		—		1,197		1,197
Employee benefit plan investments		3,014		—		—		3,014
Interest rate swap		—		(1,750)		—		(1,750)
Alaska Communications redeemable common units		—		—		(11,063)		(11,063)
Alloy redeemable common units		—		—		(14,760)		(14,760)
Warrants on Alaska Communications redeemable common units		—		—		(249)		(249)
Total assets and liabilities measured at fair value	$	3,314	$	(1,750)	$	(24,875)	$	(23,311)

Schedule of investments

A roll forward of the investments is below (in thousands)




	Investments without a readily determinable fair value		Fair value investments		Equity method investments		Total
Balance, December 31, 2023	$	41,710	$	1,197	$	—	$	42,907
Income recognized		—		64		—		64
Distributions		—		(330)		—		(330)
Balance, June 30, 2024	$	41,710	$	931	$	—	$	42,641

Balance, December 31, 2022	$	22,590	$	1,616	$	13,963	$	38,169
Income recognized		1,786		130		585		2,501
Contributions / (distributions)		425		(360)		630		695
Foreign currency gain		—		—		229		229
Balance, June 30, 2023	$	24,801	$	1,386	$	15,407	$	41,594

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total ATNI Stockholders' Equity	Common Stock	Treasury Stock, at cost	Additional Paid In Capital	Retained Earnings	Other Comprehensive Income/(Loss)	Non-Controlling Interests	Total
Balance, beginning of period at Dec. 31, 2022	$ 580,813	$ 173	$ (73,825)	$ 198,449	$ 449,806	$ 6,210	$ 96,016	$ 676,829
Increase (Decrease) in Stockholders' Equity
Purchase of shares of common stock	(8,261)		(8,261)					(8,261)
Stock-based compensation	4,255			4,255			262	4,517
Dividends declared on common stock	(6,588)				(6,588)		(1,447)	(8,035)
Repurchase of non-controlling interests	(81)			(81)			(679)	(760)
Accrued dividend - redeemable preferred units	(2,306)				(2,306)			(2,306)
Deemed dividend - redeemable common units	(5,885)				(5,885)		6,170	285
Comprehensive income:
Net Income (loss)	(5,118)				(5,118)		(2,599)	(7,717)
Other comprehensive income (loss)	424					424		424
Total comprehensive income (loss)	(4,694)				(5,118)	424	(2,599)	(7,293)
Balance, end of period at Jun. 30, 2023	557,253	173	(82,086)	202,623	429,909	6,634	97,723	654,976
Balance, beginning of period at Mar. 31, 2023	567,243	173	(76,665)	200,015	437,030	6,690	97,283	664,526
Increase (Decrease) in Stockholders' Equity
Purchase of shares of common stock	(5,421)		(5,421)					(5,421)
Stock-based compensation	2,621			2,621			118	2,739
Dividends declared on common stock	(3,273)				(3,273)		(1,448)	(4,721)
Repurchase of non-controlling interests	(13)			(13)			(152)	(165)
Accrued dividend - redeemable preferred units	(1,260)				(1,260)			(1,260)
Deemed dividend - redeemable common units	(3,355)				(3,355)		3,350	(5)
Comprehensive income:
Net Income (loss)	767				767		(1,428)	(661)
Other comprehensive income (loss)	(56)					(56)		(56)
Total comprehensive income (loss)	711				767	(56)	(1,428)	(717)
Balance, end of period at Jun. 30, 2023	557,253	173	(82,086)	202,623	429,909	6,634	97,723	654,976
Balance, beginning of period at Dec. 31, 2023	541,073	173	(90,447)	205,797	417,282	8,268	96,730	637,803
Increase (Decrease) in Stockholders' Equity
Purchase of shares of common stock	(11,932)		(11,932)					(11,932)
Stock-based compensation	4,147			4,147			543	4,690
Dividends declared on common stock	(7,345)				(7,345)		(2,156)	(9,501)
Accrued dividend - redeemable preferred units	(2,727)				(2,727)			(2,727)
Deemed dividend - redeemable common units	(857)				(857)		6,176	5,319
Comprehensive income:
Net Income (loss)	2,690				2,690		701	3,391
Other comprehensive income (loss)	1,722					1,722		1,722
Total comprehensive income (loss)	4,412				2,690	1,722	701	5,113
Balance, end of period at Jun. 30, 2024	526,771	173	(102,379)	209,944	409,043	9,990	101,994	628,765
Balance, beginning of period at Mar. 31, 2024	529,992	173	(92,463)	207,551	405,031	9,700	98,724	628,716
Increase (Decrease) in Stockholders' Equity
Purchase of shares of common stock	(9,916)		(9,916)					(9,916)
Stock-based compensation	2,393			2,393			388	2,781
Dividends declared on common stock	(3,626)				(3,626)		(2,115)	(5,741)
Accrued dividend - redeemable preferred units	(1,376)				(1,376)			(1,376)
Deemed dividend - redeemable common units	11				11		2,663	2,674
Comprehensive income:
Net Income (loss)	9,003				9,003		2,334	11,337
Other comprehensive income (loss)	290					290		290
Total comprehensive income (loss)	9,293				9,003	290	2,334	11,627
Balance, end of period at Jun. 30, 2024	$ 526,771	$ 173	$ (102,379)	$ 209,944	$ 409,043	$ 9,990	$ 101,994	$ 628,765

SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2024

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 June 30, 2024

	International		US		Corporate and
	Telecom		Telecom		Other (1)		Consolidated
Revenue
Communication Services
Mobility - Business	$	4,932	$	68	$	—	$	5,000
Mobility - Consumer		21,879		701		—		22,580
Total Mobility		26,811		769		—		27,580
Fixed - Business		18,715		30,817		—		49,532
Fixed - Consumer		43,500		21,674		—		65,174
Total Fixed		62,215		52,491		—		114,706
Carrier Services		3,636		30,056		—		33,692
Other		1,045		342		—		1,387
Total Communication Services Revenue		93,707		83,658		—		177,365
Construction		—		820		—		820
Other
Managed Services		1,650		3,446		—		5,096
Total other revenue		1,650		3,446		—		5,096
Total Revenue		95,357		87,924		—		183,281
Depreciation and amortization		16,277		19,234		47		35,558
Amortization of intangibles from acquisitions		252		1,693		—		1,945
Stock-based compensation		193		196		2,392		2,781
Operating income (loss)		32,405		884		(8,973)		24,316

(1)

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


For the Three Months Ended June 30, 2023

	International		US		Corporate and
	Telecom		Telecom		Other (1)		Consolidated
Revenue
Communication Services
Mobility - Business	$	3,507	$	114	$	—	$	3,621
Mobility - Consumer		23,349		863		—		24,212
Total Mobility		26,856		977		—		27,833
Fixed - Business		17,214		35,495		—		52,709
Fixed - Consumer		42,459		22,608		—		65,067
Total Fixed		59,673		58,103		—		117,776
Carrier Services		3,879		31,576		—		35,455
Other		448		64		—		512
Total Communication Services Revenue		90,856		90,720		—		181,576
Construction		—		1,020		—		1,020
Other
Managed Services		1,125		2,720		—		3,845
Total Other Revenue		1,125		2,720		—		3,845
Total Revenue		91,981		94,460		—		186,441
Depreciation and amortization		14,106		21,430		681		36,217
Amortization of intangibles from acquisitions		364		2,780		—		3,144
Stock-based compensation		109		9		2,621		2,739
Operating income (loss)		14,552		(2,394)		(9,718)		2,440

(1)

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


For the Six Months Ended June 30, 2024

	International		US		Corporate and
	Telecom		Telecom		Other (1)		Consolidated
Revenue
Communication Services
Mobility - Business	$	9,740	$	141	$	—	$	9,881
Mobility - Consumer		43,108		1,465		—		44,573
Total Mobility		52,848		1,606		—		54,454
Fixed - Business		37,247		65,783		—		103,030
Fixed - Consumer		86,289		44,593		—		130,882
Total Fixed		123,536		110,376		—		233,912
Carrier Services		7,209		60,109		—		67,318
Other		1,863		1,086		—		2,949
Total Communication Services Revenue		185,456		173,177		—		358,633
Construction		—		2,406		—		2,406
Other
Managed Services		2,960		6,077		—		9,037
Total Other Revenue		2,960		6,077		—		9,037
Total Revenue		188,416		181,660		—		370,076
Depreciation and amortization		32,400		37,372		125		69,897
Amortization of intangibles from acquisitions		503		3,421		—		3,924
Stock-based compensation		217		327		4,146		4,690
Operating income (loss)		44,090		1,482		(16,682)		28,890

(1)

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


For the Six Months Ended June 30, 2023

	International		US		Corporate and
	Telecom		Telecom		Other (1)		Consolidated
Revenue
Communication Services
Mobility - Business	$	7,083	$	286	$	—	$	7,369
Mobility - Consumer		45,880		1,850		—		47,730
Total Mobility		52,963		2,136		—		55,099
Fixed - Business		34,327		71,814		—		106,141
Fixed - Consumer		84,236		45,190		—		129,426
Total Fixed		118,563		117,004		—		235,567
Carrier Services		7,570		63,660		—		71,230
Other		848		139		—		987
Total Communication Services Revenue		179,944		182,939		—		362,883
Construction		—		1,610		—		1,610
Other
Managed Services		2,445		5,276		—		7,721
Total other revenue		2,445		5,276		—		7,721
Total Revenue		182,389		189,825		—		372,214
Depreciation and amortization		28,292		42,917		1,412		72,621
Amortization of intangibles from acquisitions		744		5,647		—		6,391
Stock-based compensation		176		86		4,255		4,517
Operating income (loss)		28,377		(6,737)		(18,566)		3,074

(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 June 30, 2024 and December 31, 2023 consists of the following (in thousands):


	International		US		Corporate and
	Telecom		Telecom		Other		Consolidated
June 30, 2024
Cash, cash equivalents, and restricted cash	$	33,563	$	36,448	$	3,242	$	73,253
Total current assets		130,572		155,822		9,502		295,896
Fixed assets, net		475,862		579,092		6,368		1,061,322
Goodwill		4,835		35,269		—		40,104
Total assets		683,111		997,592		91,638		1,772,341
Total current liabilities		91,529		145,856		31,500		268,885
Total debt, including current portion		59,801		298,375		182,659		540,835
December 31, 2023
Cash, cash equivalents, and restricted cash	$	26,354	$	33,574	$	2,239	$	62,167
Total current assets		107,469		162,768		11,035		281,272
Fixed assets, net		481,911		593,833		4,915		1,080,659
Goodwill		4,836		35,268		—		40,104
Total assets		672,171		1,019,924		91,619		1,783,714
Total current liabilities		86,540		169,297		37,357		293,194
Total debt, including current portion		64,254		293,607		159,009		516,870

Schedule of segment capital expenditures

The following notes the Company’s capital expenditures, by operating segment, for these periods (in thousands).


	Capital Expenditures

		International		US		Corporate and
Six months ended June 30,		Telecom		Telecom		Other (1)		Consolidated
2024	$	28,951	$	77,498	$	1,579	$	108,028
2023		38,906		57,531		—		96,437

(1)

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

LONG-TERM DEBT

6 Months Ended

Jun. 30, 2024

LONG-TERM DEBT

LONG-TERM DEBT

7. LONG-TERM DEBT

2023 CoBank Credit Facility

On July 13, 2023, the Company, along with certain of its subsidiaries as guarantors, entered into a new Credit Agreement with CoBank, ACB and a syndicate of other lenders (as may be amended from time to time, the “2023 CoBank Credit Facility”). On July 10, 2024, the Company amended its credit facility to add certain subsidiaries as guarantors and to provide further flexibility for the Company to take on certain grant and government program obligations. The amendment to the 2023 CoBank Credit Facility is filed herewith as Exhibit 10.1.

The 2023 CoBank Credit Facility provides for a five-year $170 million revolving credit facility (the “2023 CoBank Revolving Loan”) and a six-year $130 million term loan facility (the “2023 CoBank Term Loan”). The Company may use (i) up to $25 million under the 2023 CoBank Credit Facility for letters of credit, and (ii) up to $20 million under a swingline sub-facility. Upon the closing of the 2023 CoBank Credit Facility, the Company drew all of the 2023 CoBank Term Loan and approximately $13.6 million of the 2023 CoBank Revolving Loan. These borrowings were used to repay $139.5 million of debt outstanding under the 2019 CoBank Credit Facility at close.

The 2023 CoBank Term Loan must be repaid in quarterly principal payments in the amounts set forth below, with the outstanding principal balance maturing on July 13, 2029. The 2023 CoBank Revolving Loan may be repaid at any time on or prior to its maturity on July 13, 2028. All amounts outstanding under the 2023 CoBank Credit Facility will be due and payable upon the earlier of the maturity date or the acceleration of the loans and commitments upon an event of default.


2023 CoBank Term Loan Quarterly Payment Dates	2023 CoBank Term Loan Quarterly Repayments
December 31, 2023 – June 30, 2025	$812,500 (2.5% per annum)
September 30, 2025 – June 30, 2026	$1,625,000 (5% per annum)
September 30, 2026 – June 30, 2029	$2,437,500 (7.5% per annum)

Amounts borrowed under the 2023 CoBank Credit Facility bear interest at a rate equal to, at the Company’s option, either (i) the secured overnight financing rate as administered by the Federal Reserve Bank of New York (SOFR) plus an applicable margin ranging between 2.00% to 3.75% for the 2023 CoBank Term Loan or 1.75% to 3.50% for Revolving Loans or (ii) a base rate plus an applicable margin ranging from 1.00% to 2.75% for the Term Loan or 0.75% to 2.50% for the 2023 CoBank Revolving Loans. 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 one-month SOFR rate (ii) the federal funds effective rate (as defined in the 2023 CoBank Credit Agreement) plus 0.50% per annum; and (iii) the prime rate (as defined in the 2023 CoBank Credit Agreement). The applicable margin is determined based on the ratio (as further defined in the 2023 CoBank Credit Agreement) of the Company’s maximum Total Net Leverage Ratio. Under the terms of the 2023 CoBank Credit Agreement, the Company must also pay a fee ranging from 0.25% to 0.50% on the average daily unused portion of the 2023 CoBank Credit Facility over each calendar quarter.

The 2023 CoBank Credit Agreement contains a financial covenant (as further defined in the 2023 CoBank Credit Agreement) that imposes a maximum Total Net Leverage Ratio, as well as customary representations, warranties and covenants, including covenants limiting additional indebtedness, liens, guaranties, mergers and consolidations, substantial asset sales, investments and loans, sale and leasebacks, transactions with affiliates and fundamental changes. The maximum Total Net Leverage Ratio is measured each fiscal quarter and is required to be less than or equal to 3.25 to 1.0. The 2023 CoBank Credit Agreement provides for events of default customary for credit facilities of this type, including but not limited to non-payment, defaults on other debt, misrepresentation, breach of covenants, representations and warranties, insolvency and bankruptcy.

The Company capitalized $4.3 million of fees associated with the 2023 CoBank Credit Facility which are being amortized over the life of the debt and $3.5 million were unamortized as of June 30, 2024.

The Company had $127.6 million outstanding under the 2023 CoBank Term Loan as of June 30, 2024. Under the 2023 CoBank Revolving Loan, the Company had $58.6 million outstanding and $111.4 million of availability as of June 30, 2024. The Company was in compliance with all financial covenants as of June 30, 2024.

In October 2023, the Company entered into a two year, forward starting 1-month floating to fixed SOFR interest rate swap agreement. The swap was effective November 13, 2023 in a non-amortizing notional amount of $50.0 million, has a fixed SOFR rate of 4.896% and matures on November 13, 2025. The swap agreement had a fair value of $(0.1) million and $(0.5) million as of June 30, 2024 and December 31, 2023, respectively.

2019 CoBank Credit Facility

On April 10, 2019, the Company entered into a credit facility, with CoBank, ACB and a syndicate of other lenders (as amended, the “2019 CoBank Credit Facility”). The 2019 CoBank Credit Facility provided for a $200 million revolving credit facility that included (i) up to $75 million for standby or trade letters of credit and (ii) up to $10 million under a swingline sub-facility. In connection with the execution of the 2023 CoBank Credit Facility, as defined above, outstanding borrowings under the 2019 CoBank Credit Facility were repaid in full.

Amounts borrowed under the 2019 CoBank Credit Facility bore interest at a rate equal to, at the Company’s option, either (i) the London Interbank Offered Rate (“LIBOR”) plus an applicable margin ranging between 1.25% to 2.25% or (ii) a base rate plus an applicable margin ranging from 0.25% to 1.25%. Swingline loans bore interest at the base rate plus the applicable margin for base rate loans. The base rate was equal to the higher of (i) 1.00% plus the higher of (x) LIBOR for an interest period of one month and (y) LIBOR for an interest period of one week; (ii) the Federal Funds Effective Rate (as defined in the 2019 CoBank Credit Facility) plus 0.50% per annum; and (iii) the Prime Rate (as defined in the 2019 CoBank Credit Facility). The applicable margin was determined based on the Total Net Leverage Ratio (as defined in the 2019 CoBank Credit Facility). Under the terms of the 2019 CoBank Credit Facility, the Company also paid a commitment fee ranging from 0.150% to 0.375% of the average daily unused portion of the 2019 CoBank Credit Facility over each calendar quarter.

Letter of Credit Facility

On November 14, 2022, the Company entered into a General Agreement of Indemnity to issue performance Standby Letters of Credit on behalf of the Company and its subsidiaries. As of June 30, 2024, $30.9 million of Standby Letters of Credit had been issued under this agreement.

Alaska Credit Facility

On December 23, 2022, Alaska Communications entered into a Credit Agreement (the “Alaska Credit Facility”) with Fifth Third Bank, National Association, as Administrative Agent, and a syndicate of lenders to provide a Revolving Credit Commitment of $75.0 million (the “Alaska Revolving Facility”) and Term Loan Commitment of $230.0 million (the “Alaska Term Loan”).

As of June 30, 2024, Alaska Communications had drawn $49.5 million on the Alaska Revolving Facility and had $25.5 million available to draw. The Alaska Term Loan balance was $225.7 million and principal payments commenced in the fourth quarter of 2023. Both facilities mature on July 22, 2026.

Alaska Communications capitalized $7.3 million of fees associated with the Alaska Credit Facility which are being amortized over the life of the debt and $3.1 million were unamortized as of June 30, 2024.

The Alaska Credit Facility also provides for incremental facilities up to an aggregate principal amount of the greater of $70.0 million and Alaska Communications’ trailing twelve-month Consolidated EBITDA (as defined in the Alaska Credit Facility).

The key terms and conditions of the Alaska Credit Facility include the following:

●

Amounts outstanding bear an interest rate of the forward-looking SOFR rate with a one-month interest period, plus the SOFR Spread Adjustment of 10 basis points, plus a margin ranging from 3.00% to 4.00% based on Alaska Communications’ Consolidated Total Net Leverage Ratio (as defined in the Credit Agreement) or an alternate base rate may be selected at a margin that is 1% lower than the counterpart SOFR margin;

●

Principal repayments are due quarterly and commenced in the fourth quarter of 2023 in amounts as follows: from the fourth quarter of 2023 through the third quarter of 2024, $1.4 million; and from the fourth quarter of 2024 through the third quarter of 2026, $2.9 million. The remaining unpaid balance is due on the final maturity date;

●

Alaska Communications is required to maintain financial ratios as defined in the Alaska Credit Facility, including (a) a maximum Consolidated Net Total Leverage Ratio of 4.00 to 1, stepping down to 3.75 to 1 beginning with the second quarter of 2024; and (b) a minimum Consolidated Fixed Charge Coverage Ratio of not less than 1.25 to 1. In addition to these financial ratios, Alaska Communications is subject to customary representations, warranties and covenants, including limitations on additional indebtedness, liens, consolidations, mergers, assets sales, advances, investments and loans, transactions with affiliates, sale and leaseback transactions, subordinated indebtedness, and changes in the nature of its business; and

●

The Alaska Credit Facility is non-recourse to the Company and is secured by substantially all of the personal property and certain material real property owned by Alaska Communications.

In November 2023, Alaska Communications entered into two forward starting 1-month floating to fixed SOFR interest rate swap agreements. The total non-amortizing notional amount of the agreements is $200.0 million, with fixed SOFR rates of 4.8695% and 4.8980% and both agreements mature on June 30, 2025. The swap agreements had a fair value of $0.1 million and $(1.2) million as of June 30, 2024 and December 31, 2023, respectively.

Alaska Term Facility

On June 15, 2022, Alaska Communications Systems Holdings, the parent company of Alaska Communications, entered into a secured lending arrangement with Bristol Bay Industrial, LLC (the “Alaska Term Facility”).

The Alaska Term Facility provided for a secured delayed draw term loan in an aggregate principal amount of up to $7.5 million and the proceeds were used to pay certain invoices from a contractor for work performed in connection with a fiber build. Interest on the Alaska Term Facility accrued at a fixed rate of 4.0% and scheduled quarterly payments of principal commenced on March 31, 2023. The Alaska Term Facility was repaid in full during the three months ended June 30, 2024.

FirstNet Receivables Credit Facility

On March 26, 2020, Commnet Finance, a wholly owned subsidiary of Commnet Wireless, entered into a receivables credit facility with the Company, Commnet Wireless, and CoBank, ACB (the “Receivables Credit Facility”).

The Receivables Credit Facility provides for a senior secured delayed draw term loan in an aggregate principal amount of up to $75.0 million and the proceeds may be used to acquire certain receivables from Commnet Wireless. The receivables to be financed and sold under the Receivables Credit Facility, which provide the loan security, relate to the obligations of AT&T under the FirstNet Agreement.

On December 19, 2023, CoBank amended the Receivables Credit Facility and extended the delayed draw period to December 31, 2024.

The maturity date for each loan will be set by CoBank and will match the weighted average maturity of the certain receivables financed.

Interest on the loans accrue at a fixed annual interest rate to be quoted by CoBank.

The Receivables Credit Facility contains customary events of termination, representations and warranties, affirmative and negative covenants and events of default customary for facilities of this type.

As of June 30, 2024, Commnet Wireless had $46.5 million outstanding, of which $7.7 million was classified as being current on the Company’s balance sheet, and $11.3 million of availability under the Receivables Credit Facility. Commnet Wireless capitalized $0.8 million in fees associated with the Receivables Credit Facility which are being amortized over the life of the debt and $0.4 million were unamortized as of June 30, 2024.

GTT Credit Facilities

On October 12, 2022, GTT received approval from Republic Bank (Guyana) Limited for a $2.9 million term facility and a $5.7 million overdraft facility (the “GTT Credit Facilities”).

The GTT Credit Facilities are secured by real estate assets and carry a fixed interest rate of 7.5% which will be reviewed by the bank from time to time and subject to change at the bank’s discretion. The term facility is repayable over five years in equal monthly installments of principal and interest, commencing one month after funds are advanced. The overdraft facility will expire on October 31, 2024.

As of June 30, 2024, there were no outstanding amounts under the GTT Credit Facilities.

Sacred Wind Term Debt

In connection with the Sacred Wind acquisition completed on November 7, 2022, the Company assumed $31.6 million of term debt (the “Sacred Wind Term Debt”) with the United States of America acting through the Administrator of the Rural Utilities Service (“RUS”). The loan agreements are dated as of October 23, 2006 and March 17, 2016. RUS provides financial assistance in the form of loans under the Rural Electrification Act of 1936 to furnish or improve telecommunications and/or broadband services in rural areas.

The Sacred Wind Term Debt is secured by substantially all assets of Sacred Wind and an underlying mortgage to the United States of America. These mortgage notes are to be repaid in equal monthly installments covering principal and interest beginning after date of issue and expiring by 2035.

The Sacred Wind Term Debt contains certain restrictions on the declaration or payment of dividends, redemption of capital stock or investment in affiliated companies without the consent by the RUS noteholders. The agreements also contain a financial covenant which Sacred Wind was not in compliance with as of December 31, 2021. Sacred Wind submitted a corrective action plan to comply with the financial covenant as of December 31, 2025. On May 5, 2022, Sacred Wind’s corrective action plan was accepted by the RUS. As of June 30, 2024, the Company was in compliance with that corrective action plan.

As of June 30, 2024, $26.6 million was outstanding under the Sacred Wind Term Debt. Of that amount, $3.3 million was current and $23.3 million was long term.

The mortgage notes carry fixed interest rates ranging from 0.88% to 5.0%.

Viya Debt

The Company, and certain of its subsidiaries, have 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% per annum 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 Viya subsidiaries and is guaranteed by the Company.

The Company paid a fee of $0.9 million in 2016 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 is being amortized over the life of the loan.

As of June 30, 2024, $60.0 million of the Viya Debt remained outstanding and $0.2 million of the rate lock fee was unamortized.

On May 5, 2022, RTFC agreed to amend the Net Leverage Ratio to 7.0 to 1.0 through the maturity date of July 1, 2026. The Ratio is tested annually, and the Company was in compliance with the Net Leverage Ratio as of December 31, 2023.

Debt Maturity

The table below summarizes the annual maturities of the Company’s debt instruments (amounts in thousands):


									Customer
	US		International		Corporate and		Total		Receivable
Amounts Maturing During	Telecom		Telecom		Other		Debt		Credit Facility
July 1, 2024 through December 31, 2024	$	6,050	$	—	$	1,625	$	7,675	$	3,786
Year ending December 31, 2025		14,969		—		4,875		19,844		7,833
Year ending December 31, 2026		262,969		60,000		8,125		331,094		8,195
Year ending December 31, 2027		3,723		—		9,750		13,473		8,576
Year ending December 31, 2028		3,858		—		68,370		72,228		8,978
Thereafter		10,192		—		93,438		103,630		9,160
Total		301,761		60,000		186,183		547,944		46,528
Debt Discounts		(3,386)		(199)		(3,524)		(7,109)		(427)
Book Value as of June 30, 2024	$	298,375	$	59,801	$	182,659	$	540,835	$	46,101

EARNINGS PER SHARE AND REDEEMABLE NONCONTROLLING INTERESTS - Computation (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator:
Net income (loss) attributable to ATN International, Inc. stockholders- Basic	$ 9,003	$ 767	$ 2,690	$ (5,118)
Less: Preferred dividends	(1,376)	(1,260)	(2,727)	(2,306)
Net income (loss) attributable to ATN International, Inc. common stockholders- Diluted	$ 7,627	$ (493)	$ (37)	$ (7,424)
Denominator:
Weighted-average shares outstanding- Basic	15,254	15,719	15,346	15,726
Weighted-average shares outstanding- Diluted	15,255	15,719	15,346	15,726

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 805
-SubTopic 60
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147476176/805-60-65-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-11

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-11

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-4

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 5
-Subparagraph (SAB Topic 6.B)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483621/220-10-S99-5

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482662/260-10-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-10

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 11
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-11

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-60B

+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

+ References + Details

FAIR VALUE MEASUREMENTS AND INVESTMENTS - Recurring (Details) - Recurring basis - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair value measurements
Total assets and liabilities measured at fair value	$ (16,543)	$ (23,311)
Short Term Investments
Fair value measurements
Investments	300	300
Other investments
Fair value measurements
Investments	931	1,197
Employee benefit plan investments
Fair value measurements
Investments	3,007	3,014
Interest rate swap
Fair value measurements
Derivative liabilities	(28)	(1,750)
Redeemable common units \| Alloy Inc
Fair value measurements
Financial instruments	(14,760)	(14,760)
Redeemable common units \| Alaska communications
Fair value measurements
Financial instruments	(5,744)	(11,063)
Warrants \| Alaska communications
Fair value measurements
Financial instruments	(249)	(249)
Level 1
Fair value measurements
Total assets and liabilities measured at fair value	3,307	3,314
Level 1 \| Short Term Investments
Fair value measurements
Investments	300	300
Level 1 \| Employee benefit plan investments
Fair value measurements
Investments	3,007	3,014
Level 2
Fair value measurements
Total assets and liabilities measured at fair value	(28)	(1,750)
Level 2 \| Interest rate swap
Fair value measurements
Derivative liabilities	(28)	(1,750)
Level 3
Fair value measurements
Total assets and liabilities measured at fair value	(19,822)	(24,875)
Level 3 \| Other investments
Fair value measurements
Investments	931	1,197
Level 3 \| Redeemable common units \| Alloy Inc
Fair value measurements
Financial instruments	(14,760)	(14,760)
Level 3 \| Redeemable common units \| Alaska communications
Fair value measurements
Financial instruments	(5,744)	(11,063)
Level 3 \| Warrants \| Alaska communications
Fair value measurements
Financial instruments	$ (249)	$ (249)

REVENUE RECOGNITION AND RECEIVABLES - Contract Acquisition Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Contract Acquisition Costs
Amortization of contract acquisition cost	$ 1.7	$ 1.6	$ 3.3	$ 2.7
Other Assets
Contract Acquisition Costs
Short-term contract acquisition costs	$ 10.9	$ 9.7	$ 10.9	$ 9.7

LEASES (Tables)

6 Months Ended

Jun. 30, 2024

LEASES

Summary of components of lease expense

The components of lease expense were as follows (in thousands):


	Three months ended				Six months ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Operating lease cost:
Operating lease cost	$	5,626	$	5,763	$	11,105	$	11,744
Short-term lease cost		757		625		1,448		1,303
Variable lease cost		1,695		1,383		3,124		2,045
Total operating lease cost	$	8,078	$	7,771	$	15,677	$	15,092

Finance lease cost:
Amortization of right-of-use asset	$	976	$	804	$	1,588	$	1,504
Variable costs		169		227		368		430
Interest costs		100		78		200		162
Total finance lease cost	$	1,245	$	1,109	$	2,156	$	2,096

Summary of weighted-average remaining lease term and discount rate


	June 30, 2024		December 31, 2023
Weighted-average remaining lease term
Operating leases		12.7 years		13.3 years
Financing leases		5.0 years		9.2 years

Weighted-average discount rate
Operating leases		6.7%		6.3%
Financing leases		7.2%		6.6%

Summary of maturities of operating lease liabilities

Maturities of lease liabilities as of June 30, 2024 were as follows (in thousands):


	Operating Leases		Financing Leases
2024 (excluding the six months ended June 30, 2024)	$	9,353	$	1,077
2025		17,531		1,529
2026		13,288		746
2027		10,437		704
2028		8,263		551
Thereafter		83,250		2,145
Total lease payments		142,122		6,752
Less imputed interest		(56,683)		(1,525)
Total	$	85,439	$	5,227

Maturities of lease liabilities as of December 31, 2023 were as follows (in thousands):


	Operating Leases		Financing Leases
2024	$	18,048	$	2,030
2025		16,022		1,488
2026		11,755		601
2027		9,327		534
2028		7,807		505
Thereafter		80,637		2,145
Total lease payments		143,596		7,303
Less imputed interest		(57,133)		(1,662)
Total	$	86,463	$	5,641

Summary of maturities of finance lease liabilities


	Operating Leases		Financing Leases
2024 (excluding the six months ended June 30, 2024)	$	9,353	$	1,077
2025		17,531		1,529
2026		13,288		746
2027		10,437		704
2028		8,263		551
Thereafter		83,250		2,145
Total lease payments		142,122		6,752
Less imputed interest		(56,683)		(1,525)
Total	$	85,439	$	5,227


	Operating Leases		Financing Leases
2024	$	18,048	$	2,030
2025		16,022		1,488
2026		11,755		601
2027		9,327		534
2028		7,807		505
Thereafter		80,637		2,145
Total lease payments		143,596		7,303
Less imputed interest		(57,133)		(1,662)
Total	$	86,463	$	5,641

Schedule of maturities of future undiscounted lease payments

The following table presents the maturities of future undiscounted lease payments for the periods indicated (in thousands):


2024 (excluding the six months ended June 30, 2024)	$	3,669
2025		7,062
2026		6,730
2027		5,538
2028		5,157
Thereafter		13,262
Total future lease payments	$	41,418

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
REVENUE:
Total revenue	$ 183,281	$ 186,441	$ 370,076	$ 372,214
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated):
Selling, general and administrative	57,661	61,914	118,979	123,262
Stock-based compensation	2,781	2,739	4,690	4,517
Transaction-related charges		438	19	451
Restructuring expenses		370	1,190	3,257
Depreciation and amortization	35,558	36,217	69,897	72,621
Amortization of intangibles from acquisitions	1,945	3,144	3,924	6,391
(Gain) loss on disposition of assets	(15,930)	445	(16,422)	278
Total operating expenses	158,965	184,001	341,186	369,140
Income from operations	24,316	2,440	28,890	3,074
OTHER INCOME (EXPENSE)
Interest income	140	45	586	227
Interest expense	(12,337)	(10,449)	(23,857)	(19,256)
Other income (expense)	(578)	2,216	(406)	2,411
Other (expense)	(12,775)	(8,188)	(23,677)	(16,618)
INCOME (LOSS) BEFORE INCOME TAXES	11,541	(5,748)	5,213	(13,544)
Income tax expense (benefit)	204	(5,087)	1,822	(5,827)
NET INCOME (LOSS)	11,337	(661)	3,391	(7,717)
Net (income) loss attributable to noncontrolling interests, net of tax (benefit) expense of $(0.4) million, $(0.7) million, $(0.1) million and $(1.2) million respectively	(2,334)	1,428	(701)	2,599
NET INCOME (LOSS) ATTRIBUTABLE TO ATN INTERNATIONAL, INC. STOCKHOLDERS	$ 9,003	$ 767	$ 2,690	$ (5,118)
Basic (in dollars per share)	$ 0.50	$ (0.03)	$ 0.00	$ (0.48)
Diluted (in dollars per share)	$ 0.50	$ (0.03)	$ 0.00	$ (0.48)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	15,254	15,719	15,346	15,726
Diluted (in shares)	15,255	15,719	15,346	15,726
DIVIDENDS PER SHARE APPLICABLE TO COMMON STOCK (in dollars per share)	$ 0.24	$ 0.21	$ 0.48	$ 0.42
Communication Services
REVENUE:
Total revenue	$ 177,365	$ 181,576	$ 358,633	$ 362,883
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated):
Cost of services	76,137	77,718	156,527	156,759
Construction
REVENUE:
Total revenue	820	1,020	2,406	1,610
OPERATING EXPENSES (excluding depreciation and amortization unless otherwise indicated):
Cost of services	813	1,016	2,382	1,604
Other
REVENUE:
Total revenue	$ 5,096	$ 3,845	$ 9,037	$ 7,721

LEASES - Components of Lease Expense and Payments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		18 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Dec. 31, 2023
LEASES
Operating lease cost	$ 5,626	$ 5,763	$ 11,105	$ 11,744
Short-term lease cost	757	625	1,448	1,303
Variable lease cost	1,695	1,383	3,124	2,045
Total operating lease cost	8,078	7,771	15,677	15,092
Finance lease cost:
Amortization of right-of-use asset	976	804	1,588	1,504
Variable costs	169	227	368	430
Interest costs	100	78	200	162
Total finance lease cost	1,245	$ 1,109	2,156	2,096
Payments for lease liabilities			9,500	9,700
Lease liabilities arising from right of use assets			5,700	12,300
Right of use assets terminated					$ 5,600
Lease liabilities terminated					5,900
Gain on lease termination					300
Finance leases cost included in fixed assets, net	32,200		32,200		32,200	$ 31,700
Accumulated amortization related to finance leases	17,900		17,900		17,900	16,400
Principal payments, finance lease liabilities			915	481
Investing cash flows for finance lease liabilities				3,400
Operating cash flows for finance lease liabilities			200	$ 200
Finance lease liability	5,227		5,227		5,227	$ 5,641
Finance lease liability, current	$ 1,800		$ 1,800		$ 1,800

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	May 08, 2024 USD ($)	Jun. 30, 2024 USD ($) claim
Litigation proceedings and disputes in Guyana
Commitments and contingencies
Number of pending claims \| claim		1
Consent Decree with the FCC Enforcement Bureau
Commitments and contingencies
Settlement, amount	$ 6.3
Cash payment	5.3
Amount of forgiveness on receivables for settlement	$ 1.0
Consent Decree with the FCC Enforcement Bureau \| Universal Service Administrative Company
Commitments and contingencies
Term of compliance agreement	3 years
Pending litigation, adverse outcome
Commitments and contingencies
Accrued contingent liability		$ 12.5

LONG-TERM DEBT - Debt Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Long-term Debt	$ 540,835	$ 516,870
Total Debt
Debt Instrument [Line Items]
July 1, 2024 through December 31, 2024	7,675
Year ending December 31, 2025	19,844
Year ending December 31, 2026	331,094
Year ending December 31, 2027	13,473
Year ending December 31, 2028	72,228
Thereafter	103,630
Total	547,944
Debt Discounts	(7,109)
Long-term Debt	540,835
Customer receivable credit facility
Debt Instrument [Line Items]
July 1, 2024 through December 31, 2024	3,786
Year ending December 31, 2025	7,833
Year ending December 31, 2026	8,195
Year ending December 31, 2027	8,576
Year ending December 31, 2028	8,978
Thereafter	9,160
Total	46,528
Debt Discounts	(427)
Long-term Debt	46,101
Corporate and Other
Debt Instrument [Line Items]
July 1, 2024 through December 31, 2024	1,625
Year ending December 31, 2025	4,875
Year ending December 31, 2026	8,125
Year ending December 31, 2027	9,750
Year ending December 31, 2028	68,370
Thereafter	93,438
Total	186,183
Debt Discounts	(3,524)
Long-term Debt	182,659	159,009
US Telecom \| Operating segments
Debt Instrument [Line Items]
Long-term Debt	298,375	293,607
US Telecom \| Operating segments \| Total Debt
Debt Instrument [Line Items]
July 1, 2024 through December 31, 2024	6,050
Year ending December 31, 2025	14,969
Year ending December 31, 2026	262,969
Year ending December 31, 2027	3,723
Year ending December 31, 2028	3,858
Thereafter	10,192
Total	301,761
Debt Discounts	(3,386)
Long-term Debt	298,375
International Telecom \| Operating segments
Debt Instrument [Line Items]
Long-term Debt	59,801	$ 64,254
International Telecom \| Operating segments \| Total Debt
Debt Instrument [Line Items]
Year ending December 31, 2026	60,000
Total	60,000
Debt Discounts	(199)
Long-term Debt	$ 59,801

FAIR VALUE MEASUREMENTS AND INVESTMENTS - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Equity investments
Fair value measurements
Equity method investments without a readily determinable fair value transferred to the cost method		$ 16.3
Carrying Value
Fair value measurements
Long-term debt	$ 586.9	562.9
Level 2 \| Total
Fair value measurements
Long-term debt	$ 583.7	$ 571.6