Accounts Receivable

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Accounts Receivable

4. ACCOUNTS RECEIVABLE

Accounts receivable, net, consists of the following at June 30, 2017 and December 31, 2016:

	2017			2016
Retail customers	$	15,210		$	17,511
Wholesale carriers		5,086			4,293
Other		4,309			4,373
		24,605			26,177
Less: allowance for doubtful accounts		(2,365	)		(1,115	)
Accounts receivable, net	$	22,240		$	25,062

The following table summarizes the change in the allowance for doubtful accounts for the six-month period ended June 30, 2017:

	2017
Balance at January 1	$	1,115
Provision for uncollectible accounts		1,633
Charged to other accounts		—
Deductions		(383	)
Balance at June 30	$	2,365

On April 10, 2017, the Universal Service Administrative Company (“USAC”), which administers the Federal Communications Commission’s (“FCC”) rural health care universal service support mechanism, confirmed that demand for rural health care support had exceeded the program’s $400 million annual cap in Funding Year 2016, which began July 1, 2016 and ended on June 30, 2017. As a result, USAC announced that applicants that filed successful funding requests between September 1 and November 30, 2016 would receive 92.5 percent of the funding for which they were otherwise eligible. On June 30, 2017, the FCC issued an order to Alaskan health care providers impacted by the Rural Health Care Program pro-ration, allowing customers unable to fund the shortfall to remain in regulatory compliance with the program. The Company subsequently notified this subset of customers that, subject to certain terms and conditions, it would suspend collection of the funding shortfall for Funding Year 2016. In the second quarter of 2017, the Company recorded a charge of $1,102 to fully reserve the effect of the funding shortfall for Funding Year 2016 on its rural health care customers. At June 30, 2017, the Company’s accounts receivable balance included $4,233, net of the allowance for doubtful accounts including the above referenced charge, associated with these customers. Rural health care accounts are a component of the Retail Customers category in the above table. The Company will continue to evaluate the impact of potential shortfalls in Funding Year 2016 on its accounts receivable.