Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Note 11. Segment Information

Effective in the first quarter of 2017, our management, including our chief executive officer, who is our chief operating decision maker, commenced managing our operations as four reportable segments in addition to our corporate operations and include:

Leasing: Represents our REIT operations and includes the results from our leasing programs, Uniti Leasing, which is engaged in the acquisition of mission-critical communications assets and leasing back to anchor customers on either an exclusive or shared-tenant basis.

Fiber Infrastructure: Represents the operations of Uniti Fiber, which is a leading provider of infrastructure solutions including cell site backhaul and dark fiber, to the telecommunications industry.

Towers: Represents the operations of our towers business, Uniti Towers, through which we acquire and construct tower and tower-related real estate in the United States and Latin America.

Consumer CLEC: Represents the operations of Talk America Services (“Talk America”) through which we operate the Consumer CLEC Business, that prior to the Spin-Off was reported as an integrated operation within Windstream. Talk America provides local telephone, high-speed internet and long distance services to customers in the eastern and central United States.

Corporate: Represents our corporate and back office functions. Certain costs and expenses, primarily related to headcount, insurance, professional fees and similar charges, that are directly attributable to operations of our business segments are allocated to the respective segments.

Management evaluates the performance of each segment using Adjusted EBITDA, which is a segment performance measure defined as net income determined in accordance with GAAP, before interest expense, provision for income taxes, depreciation and amortization, stock-based compensation expense, the impact, which may be recurring in nature, of transaction related expenses, the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, changes in the fair value of contingent consideration and financial instruments, and other similar items.

The Company’s business segment information is presented below. Prior year information has been recast to conform to the current year presentation.

	Three Months Ended March 31, 2017
(Thousands)	Leasing		Fiber Infrastructure		Towers			Consumer CLEC		Corporate			Subtotal of Reportable Segments
Revenues	$	170,306	$	34,812	$	1,428		$	4,927	$	-		$	211,473
Adjusted EBITDA	$	170,060	$	11,567	$	(735	)	$	1,166	$	(5,056	)	$	177,002
Less:
Interest expense														73,365
Depreciation and amortization		86,506		13,221		886			652		96			101,361
Other expense														11,339
Transaction related costs														9,684
Stock-based compensation														1,632
Income tax expense														(379	)
Net loss													$	(20,000	)
Capital expenditures(1)	$	-	$	14,502	$	72,203		$	-	$		39	$	86,744

⁽¹⁾Segment capital expenditures represents capital expenditures, NMS asset acquisition and ground lease investments as reported in the investing activities section of the Condensed Consolidated Statements of Cash Flows.

	Three Months Ended March 31, 2016
(Thousands)	Leasing		Fiber Infrastructure		Towers			Consumer CLEC		Corporate			Subtotal of Reportable Segments
Revenues	$	168,613	$	-	$	28			6,034	$	-		$	174,675
Adjusted EBITDA	$	168,208	$	-	$	(302	)	$	1,332	$	(3,529	)	$	165,709
Less:
Interest expense														66,049
Depreciation and amortization		85,403				30			814		93			86,340
Other expense														-
Transaction related costs														3,910
Stock-based compensation														930
Income tax expense														444
Net income													$	8,036
Capital expenditures(1)	$	-	$	-	$	1,347		$	-	$	77		$	1,424

⁽¹⁾Segment capital expenditures represents capital expenditures and ground lease investments as reported in the investing activities section of the Condensed Consolidated Statements of Cash Flows.

Total assets by business segment as of March 31, 2017 and December 31, 2016 are as follows:

(Thousands)	March 31, 2017		December 31, 2016
Leasing	$	2,175,234	$	2,238,517
Fiber Infrastructure		925,379		914,082
Towers		129,853		18,004
Consumer CLEC		14,634		14,239
Corporate		35,577		133,910
Total of reportable segments	$	3,280,677	$	3,318,752