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Nature of Operations

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

Nature of Operations

Shenandoah Telecommunications Company and its subsidiaries (collectively, the “Company”) provide broadband data, video and voice services to residential and commercial customers in portions of Virginia, West Virginia, Maryland, Pennsylvania and Kentucky, via fiber optic, hybrid fiber coaxial cable, and fixed wireless networks. We also lease dark fiber and provide Ethernet and Wavelength fiber optic services to enterprise and wholesale customers throughout the entirety of our service area. The Broadband segment also provides voice and DSL telephone services to customers in Virginia’s Shenandoah County and portions of adjacent counties as a Rural Local Exchange Carrier (“RLEC”). These integrated networks are connected by a fiber network. All of these operations are contained within our Broadband reporting segment.

Our Tower segment owns 223 cell towers and leases colocation space on those towers to wireless communications providers, refer to Note 15, Segment Reporting, for additional information.

Revision of Prior Period Financial Statements

Immaterial correction of accumulated error

During 2021, the Company determined that an error existed in our previously issued financial statements related to the capitalization of labor costs associated with customer installation activities at existing service locations for the Broadband segment. These activities were incorrectly recognized as capitalized contract fulfillment costs since the adoption of Accounting Standards Codification 606, Revenue from contracts with customers, (“ASC 606”) on January 1, 2018. The costs should have been expensed according to application of historical accounting policy in place prior to the adoption of ASC 606, and pursuant to industry specific guidance ASC 922 Entertainment – Cable Television. The error was evaluated under the U.S. Securities and Exchange Commission's ("SEC's") authoritative guidance on materiality and the quantification of the effect of prior period misstatements on the Company’s financial statements. Although the Company has determined such error to be immaterial to its prior annual and interim financial statements, the cumulative effect of the error would be material if corrected in the current year. Therefore, the Company revised its historical financial statements to properly reflect the historical accounting policy elected pursuant to ASC 922. The cumulative impact of such error, relative to earnings, for the period prior to 2019 was insignificant.

			As of and for the Year Ended December 31, 2020
($ in thousands)			Pre-Adjustment						Error Correction						Post-Adjustment
Consolidated Balance Sheet:
Prepaid expenses and other			$	9,631					$	(2,109)					$	7,522
Deferred charges and other assets			11,650						(5,202)						6,448
Deferred income taxes			150,652						(1,968)						148,684
Retained earnings			539,783						(5,343)						534,440
Consolidated Statement of Comprehensive Income:
Cost of services			88,203						1,454						89,657
Income before income taxes			2,040						(1,454)						586
Income tax (benefit) expense			(586)						(404)						(990)
Income from continuing operations			2,626						(1,050)						1,576
Net income			126,723						(1,050)						125,673
Comprehensive income			121,709						(1,050)						120,659
Net income per share, basic and diluted:
Basic - Income from continuing operations			$	0.05					$	(0.02)					$	0.03
Basic - Net income per share			$	2.54					$	(0.02)					$	2.52
Diluted - Income from continuing operations			$	0.05					$	(0.02)					$	0.03
Diluted - Net income per share			$	2.53					$	(0.02)					$	2.51

			As of and for the Year Ended December 31, 2019
($ in thousands)			Pre-Adjustment						Error Correction						Post-Adjustment
Consolidated Balance Sheet:
Prepaid expenses and other			$	11,178					$	(2,510)					$	8,668
Deferred charges and other assets			9,267						(3,349)						5,918
Deferred income taxes			137,567						(1,565)						136,002
Retained earnings, beginning of year			388,496						(3,838)						384,658
Retained earnings, end of year			430,010						(4,294)						425,716
Consolidated Statement of Comprehensive Income:
Cost of services			82,949						623						83,572
Income before income taxes			2,561						(623)						1,938
Income tax (benefit) expense			173						(167)						6
Income from continuing operations			2,388						(456)						1,932
Net income			55,956						(456)						55,500
Comprehensive income			47,984						(456)						47,528
Net income per share, basic and diluted:
Basic - Income from continuing operations			$	0.05					$	(0.01)					$	0.04
Basic - Net income per share			$	1.12					$	(0.01)					$	1.11
Diluted - Income from continuing operations			$	0.05					$	(0.01)					$	0.04
Diluted - Net income per share			$	1.12					$	(0.01)					$	1.11

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- Definition

The entire disclosure for the nature of an entity's business, major products or services, principal markets including location, and the relative importance of its operations in each business and the basis for the determination, including but not limited to, assets, revenues, or earnings. For an entity that has not commenced principal operations, disclosures about the risks and uncertainties related to the activities in which the entity is currently engaged and an understanding of what those activities are being directed toward.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=99393423&loc=d3e5967-108592

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-URI http://asc.fasb.org/topic&trid=2134479

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- References

No definition available.

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