Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

Our management, including our chief executive officer, who is our chief operating decision maker, managed our operations as two reportable segments, Uniti Leasing and Uniti Fiber, in addition to our corporate operations, as described below.

Uniti 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.

Uniti Fiber: 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 acquisition, pursuit, transaction and integration costs (including unsuccessful acquisition pursuit 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, goodwill impairment charges, 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 years ended December 31, 2023, 2022 and 2021:

	Year Ended December 31, 2023
(Thousands)	Uniti Leasing		Uniti Fiber		Corporate		Total of Reportable Segments
Revenues	$	852,772	$	297,059	$	—	$	1,149,831
Adjusted EBITDA	$	829,557	$	115,723	$	(21,778)	$	923,502
Less:
Interest expense, net							512,349
Depreciation and amortization	178,872		131,600		56		310,528
Other, net							20,893
Transaction related and other costs							12,611
Gain on sale of real estate							(2,164)
Goodwill impairment							203,998
Stock-based compensation							12,491
Income tax benefit							(68,474)
Adjustments for equity in earnings from unconsolidated entities							$	3,019
Net loss							(81,749)
Capital expenditures	$	277,235	$	139,767	$	—	$	417,002

	Year Ended December 31, 2022
(Thousands)	Uniti Leasing		Uniti Fiber		Corporate		Total of Reportable Segments
Revenues	$	827,457	$	301,390	$	—	$	1,128,847
Adjusted EBITDA	$	806,027	$	125,361	$	(25,492)	$	905,896
Less:
Interest expense, net							376,832
Depreciation and amortization	172,007		120,666		115		292,788
Other, net							(4,790)
Transaction related and other costs							10,340
Gain on sale of operations							(176)
Gain on sale of real estate							(433)
Goodwill impairment							240,500
Stock-based compensation							12,751
Income tax benefit							(17,365)
Adjustments for equity in earnings from unconsolidated entities							3,571
Net loss							$	(8,122)
Capital expenditures	$	263,269	$	163,962	$	336	$	427,567

	Year Ended December 31, 2021
(Thousands)	Uniti Leasing		Uniti Fiber		Corporate		Total of Reportable Segments
Revenues	$	801,497	$	299,025	$	—	$	1,100,522
Adjusted EBITDA	$	784,061	$	118,452	$	(24,232)	$	878,281
Less:
Interest expense, net							446,296
Depreciation and amortization	174,622		116,065		255		290,942
Other, net							24,917
Transaction related and other costs							7,544
Gain on sale of operations							(28,143)
Gain on sale of real estate							(442)
Stock-based compensation							13,847
Income tax benefit							(4,916)
Adjustments for equity in earnings from unconsolidated entities							3,491
Net loss							$	124,745
Capital expenditures	$	223,251	$	162,463	$	141	$	385,855

Total assets by business segment as of December 31, 2023 and December 31, 2022 are as follows:

	December 31,
(Thousands)	2023		2022
Uniti Leasing	$	2,936,972	$	2,705,934
Uniti Fiber	1,956,381		2,076,136
Corporate	131,776		69,159
Total of reportable segments	$	5,025,129	$	4,851,229