Acquisition of NTELOS Holdings Corp. and Exchange with Sprint (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of Preliminary Purchase Price Allocation and Revisions Recorded

The following table shows the initial estimate of value and changes recorded during the third quarter of 2016 (in thousands):



	Initial Estimate		Revisions			Revised Estimate
Accounts receivable	$	48,476	$	1,045		$	49,521
Inventory	3,810		—			3,810
Restricted cash	2,167		—			2,167
Investments	1,501		—			1,501
Prepaid expenses and other assets	14,835		—			14,835
Building held for sale	4,950		—			4,950
Property, plant and equipment	223,900		3,571			227,471
Spectrum licenses	198,200		—			198,200
Customer based contract rights	198,200		5,162			203,362
Contract based intangible assets	11,000		—			11,000
Goodwill	151,627		(6,328		)	145,299
Other long term assets	10,288		555			10,843
Total assets acquired	$	868,954	$	4,005		$	872,959

Accounts payable	$	8,648	$	(116	)	$	8,532
Advanced billings and customer deposits	12,477		—			12,477
Accrued expenses	25,230		—			25,230
Capital lease liability	418		—			418
Deferred tax liabilities	124,964		2,758			127,722
Retirement benefits	19,461		(263		)	19,198
Other long-term liabilities	14,056		—			14,056
Total liabilities assumed	205,254		2,379			207,633

Net assets acquired	$	663,700	$	1,626		$	665,326

Intangible Assets Resulting from Acquisition

Intangible assets resulting from the acquisition of nTelos and the Sprint exchange, both described above, are noted below (dollars in thousands):



	Useful Life	Basis
Affiliate contract agreement	14 years	$	287,800
Customer based contract rights	4-10 years	113,761
Contract based intangible assets	3-19 years	11,000

Unaudited Pro forma Results of the Company

Following are the unaudited pro forma results of the Company for the three months ended September 30, 2015 and the nine months ended September 30, 2016 and 2015, as if the acquisition of nTelos had occurred at the beginning of each of the periods presented. The three months ended September 30, 2016 are not presented as those results already include nTelos' results (in thousands):



	Nine Months Ended September 30,
	2016			2015
Operating revenues	$	492,114		$	509,415
Income (loss) before income taxes	$	(4,016	)	$	39,680

Three Months Ended
September 30,

Operating revenues

Income before income taxes