Basis of Presentation and Consolidation

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The accompanying Consolidated Financial Statements include all accounts of the Company and, its wholly-owned and/or controlled subsidiaries, including the Operating Partnership. Under the Accounting Standards Codification 810, Consolidation (“ASC 810”), the Operating Partnership is considered a variable interest entity and is consolidated in the Consolidated Financial Statements of Uniti Group Inc. because the Company is the primary beneficiary. All material intercompany balances and transactions have been eliminated.

ASC 810 provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIEs. Generally, the consideration of whether an entity is a VIE applies when either: (1) the equity investors (if any) lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and substantially all of the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is defined as the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE.

The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for financial information set forth in the Accounting Standards Codification (“ASC”), as published by the Financial Accounting Standards Board (“FASB”), and with the applicable rules and regulations of the Securities and Exchange Commission (“SEC”).

Immaterial Error Correction of Previously Issued Financial Statements

The Company has made certain adjustments to previously reported amounts for correcting immaterial errors related to the income tax benefits associated with the goodwill impairment in our unaudited condensed consolidated financial statements as of September 30, 2023 and for the three and nine months then ended, as summarized in the table below. The Company's management has determined that their related impact was not material to those financial statements. The adjustments had no impact on Adjusted EBITDA (see Note 16), which is the performance measure management uses to evaluate the performance of our reportable segments or our operating cash flows. The Company will correct previously reported financial information for these immaterial errors in our future filings, as applicable.

Unaudited Interim Financial Information

A summary of the adjustments to our prior period unaudited condensed consolidated balance sheet, condensed consolidated statement of loss, condensed consolidated statement of comprehensive loss, and condensed consolidated statement of cash flows is presented below:


	As of September 30, 2023
(Thousands)	As Reported		Adjustments		As Adjusted
Goodwill	$	208,378	$	(50,998)	$	157,380
Deferred income taxes, net	$	90,792	$	13,035	$	103,827
Total Assets	$	4,981,325	$	(37,963)	$	4,943,362
Distributions in excess of accumulated earnings	$	(3,665,569)	$	(37,946)	$	(3,703,515)
Total Uniti shareholders' deficit	$	(2,446,730)	$	(37,946)	$	(2,484,676)
Operating partnership units	$	2,040	$	(17)	$	2,023
Total shareholders' deficit	$	(2,444,440)	$	(37,963)	$	(2,482,403)
Total Liabilities and Shareholders' Deficit	$	4,981,325	$	(37,963)	$	4,943,362


	Three Months Ended September 30, 2023
(Thousands)	As Reported		Adjustments		As Adjusted
Goodwill impairment	$	153,000	$	50,998	$	203,998
Loss before income taxes and equity in earnings from unconsolidated entities	$	(124,698)	$	(50,998)	$	(175,696)
Income tax benefit	$	(43,095)	$	(13,035)	$	(56,130)
Net loss	$	(80,933)	$	(37,963)	$	(118,896)
Net loss attributable to noncontrolling interest	$	(36)	$	(17)	$	(53)
Net loss attributable to shareholders	$	(80,897)	$	(37,946)	$	(118,843)
Net loss attributable to common shareholders	$	(81,223)	$	(37,946)	$	(119,169)
Earnings per share - Basic	$	(0.34)	$	(0.16)	$	(0.50)
Earnings per share - Diluted	$	(0.34)	$	(0.16)	$	(0.50)

Comprehensive loss:
Net loss	$	(80,933)	$	(37,963)	$	(118,896)
Comprehensive loss	$	(80,933)	$	(37,963)	$	(118,896)
Comprehensive loss attributable to noncontrolling interest	$	(36)	$	(17)	$	(53)
Comprehensive loss attributable to shareholders	$	(80,897)	$	(37,946)	$	(118,843)


	Nine Months Ended September 30, 2023
(Thousands)	As Reported		Adjustments		As Adjusted
Goodwill impairment	$	153,000	$	50,998	$	203,998
Loss before income taxes and equity in earnings from unconsolidated entities	$	(126,360)	$	(50,998)	$	(177,358)
Income tax benefit	$	(49,864)	$	(13,035)	$	(62,899)
Net loss	$	(74,506)	$	(37,963)	$	(112,469)
Net loss attributable to noncontrolling interest	$	(33)	$	(17)	$	(50)
Net loss attributable to shareholders	$	(74,473)	$	(37,946)	$	(112,419)
Net loss attributable to common shareholders	$	(75,378)	$	(37,946)	$	(113,324)
Earnings per share - Basic	$	(0.32)	$	(0.16)	$	(0.48)
Earnings per share - Diluted	$	(0.32)	$	(0.16)	$	(0.48)

Comprehensive loss:
Net loss	$	(74,506)	$	(37,963)	$	(112,469)
Comprehensive loss	$	(74,506)	$	(37,963)	$	(112,469)
Comprehensive loss attributable to noncontrolling interest	$	(33)	$	(17)	$	(50)
Comprehensive loss attributable to shareholders	$	(74,473)	$	(37,946)	$	(112,419)


	Nine Months Ended September 30, 2023
(Thousands)	As Reported		Adjustments		As Adjusted
Cash Flows from Operating Activities
Net Loss	$	(74,506)	$	(37,963)	$	(112,469)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred income taxes	$	(50,161)	$	(13,035)	$	(63,196)
Goodwill impairment	$	153,000	$	50,998	$	203,998
Net cash provided by operating activities	$	190,575	$	—	$	190,575