Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Note 12. Segment Information

Our management, including our chief executive officer, who is our chief operating decision maker, manages our operations as two reportable segments, in addition to our corporate operations, which include:

Leasing: Represents the operations of our leasing business, Uniti Leasing, which is engaged in the acquisition and construction of mission-critical communications assets and leasing them to anchor customers on either an exclusive or shared-tenant basis, in addition to the leasing of dark fiber on our existing dark fiber network assets that we either constructed or acquired. While the Leasing segment represents our REIT operations, certain aspects of the Leasing segment are also operated through taxable REIT subsidiaries.

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

Corporate: Represents our corporate office and shared service 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 we define as net income determined in accordance with GAAP, before interest expense, provision for income taxes, depreciation and amortization, stock-based compensation expense and the impact, which may be recurring in nature, of transaction and integration related costs, costs associated with Windstream’s bankruptcy, costs associated with litigation claims made against us, costs associated with the implementation of our enterprise resource planning system, executive severance costs, costs related to the settlement with Windstream, amortization of non-cash rights-of-use assets, the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, including early tender and redemption premiums and costs associated with the termination of related hedging activities, gains or losses on dispositions, changes in the fair value of contingent consideration and financial instruments, and other similar or infrequent items (although we may not have had such charges in the periods presented). Adjusted EBITDA includes adjustments to reflect the Company’s share of Adjusted EBITDA from unconsolidated entities. The Company believes that net income, as defined by GAAP, is the most appropriate earnings metric; however, we believe that Adjusted EBITDA serves as a useful supplement to net income because it allows investors, analysts and management to evaluate the performance of our segments in a manner that is comparable period over period. Adjusted EBITDA should not be considered as an alternative to net income as determined in accordance with GAAP.

Selected financial data related to our segments is presented below for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31, 2022
(Thousands)	Leasing		Fiber Infrastructure		Corporate			Subtotal of Reportable Segments
Revenues	$	204,641	$	73,393	$	-		$	278,034
Adjusted EBITDA	$	198,973	$	31,459	$	(5,643	)	$	224,789
Less:
Interest expense									96,172
Depreciation and amortization		42,102		29,319		36			71,457
Other, net									361
Transaction related and other costs									1,714
Stock-based compensation									3,312
Income tax benefit									(2,071	)
Adjustments for equity in earnings from unconsolidated entities									986
Net income								$	52,858

	Three Months Ended March 31, 2021
(Thousands)	Leasing		Fiber Infrastructure		Corporate			Subtotal of Reportable Segments
Revenues	$	194,936	$	77,650	$	-		$	272,586
Adjusted EBITDA	$	191,497	$	29,721	$	(6,970	)	$	214,248
Less:
Interest expense									140,581
Depreciation and amortization		42,226		28,670		68			70,964
Other, net									1,318
Transaction related and other costs									4,137
Stock-based compensation									3,335
Income tax benefit									(2,557	)
Adjustments for equity in earnings from unconsolidated entities									972
Net loss								$	(4,502	)