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IMPAIRMENT OF LONG LIVED ASSETS AND GOODWILL
6 Months Ended
Jun. 30, 2016
IMPAIRMENT OF LONG LIVED ASSETS AND GOODWILL  
IMPAIRMENT OF GOODWILL AND LONG LIVED ASSETS

6. IMPAIRMENT OF LONG LIVED ASSETS AND GOODWILL

 

During June 2016, as a result of recent industry consolidation activities and a review of strategic alternatives for our U.S. Wireline business in the Northeast, the Company identified factors indicating the carrying amount of certain assets may not be recoverable.  More specifically, the factors included the competitive environment, recent industry consolidation, and the Company’s view of future opportunities in the market which began to evolve in the second quarter of 2016.  As a result of these factors, on August 4, 2016, the Company entered into a stock purchase agreement to sell a portion of its U.S. Wireline business.  The transaction is subject to certain regulatory approvals.  As a result of this transaction and the recent developments in the market, the Company determined that carrying value exceeded the fair value of certain assets.  Therefore, the Company recorded an impairment charge of $11.1 million, including $7.5 million related to goodwill, to reduce the carrying value of these assets to the estimated fair value.  The impairment charge is included in income from operations for the three months ended June 30, 2016.