XML 35 R12.htm IDEA: XBRL DOCUMENT v3.6.0.2
Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2016
Asset Retirement Obligation Disclosure [Abstract]  
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS
The components of the changes in the asset retirement obligation liabilities for the periods stated were as follows:
(Dollars in thousands)
Short-Term Portion
 
Long-Term Portion
 
Total
Balance at January 1, 2015
$
342

 
$
6,805

 
$
7,147

Accretion
125

 
540

 
665

Amounts paid
(176
)
 
—

 
(176
)
Increases and (reductions) recorded
(55
)
 
258

 
203

Reclassifications
60

 
(60
)
 
—

Balance at December 31, 2015
296

 
7,543

 
7,839

Accretion
36

 
587

 
623

Amounts paid
(213
)
 
—

 
(213
)
Reductions recorded
(134
)
 
(558
)
 
(692
)
Reclassifications
100

 
(100
)
 
—

Balance at December 31, 2016
$
85

 
$
7,472

 
$
7,557


Increases and reductions other than accretion, reclassification and amounts paid primarily relate to changes in estimate of the underlying liability, specifically as it relates to updates in estimated costs to remove a transmitter and the estimated timing of removal. The cost associated with the estimated removal costs and timing refinements due to ongoing network rationalization activities is expected to accrete to a total liability of $9.0 million. The total estimated liability is based on the transmitter locations remaining after we have consolidated the number of networks we operate and assume the underlying leases continue to be renewed to that future date.
Accretion expense was $0.6 million, $0.7 million and $0.8 million for the periods ended December 31, 2016, 2015 and 2014, respectively. Accretion expense related solely to asset retirement obligations and was recorded based on the interest method utilizing the following discount rates for the specified periods: 
Period
Discount Rate
2016 – January 1 through December 31 – Additions(1)
11.50
%
2016 – December 31 - Incremental Estimates(2)
12.09
%
2015 – January 1 through December 31 – Additions(1)
10.48
%
2015 – December 31 - Incremental Estimates(2)
11.50
%
2014 – January 1 through December 31 – Additions(1)
10.48
%
2014 – December 31 - Incremental Estimates(2)
12.10
%
(1) 
Transmitters moved to new sites resulting in additional liability. Weighted average credit adjusted risk-free rate used to discount additions.
(2) 
Weighted average credit adjusted risk-free rate used to discount downward revision to estimated future cash flows.
Additional information regarding related asset retirement costs, depreciation expense, accretion and liabilities can be found in Note 3, "Consolidated Financial Statement Components."