Basis of Presentation and Other Information

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Other Information

Shenandoah Telecommunications Company (“Shentel”, “we”, “our”, “us”, or the “Company”) is a provider of a comprehensive

range of broadband communication services and cell tower colocation space in the Mid-Atlantic portion of the United States.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. All normal recurring adjustments considered necessary for a fair presentation have been included. Certain disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2021. As discussed in Notes 1 and 16 to the audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021, (the "2021 Form 10-K"), the Company determined that an immaterial error existed in our previously issued financial statements. As such, the Company revised its historical unaudited condensed consolidated financial statements as of and for the three and nine months ended September 30, 2021. Refer to the table below for a summary of these revisions.


	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
(in thousands, except per share amounts)	Pre-Adjustment		Error Correction		Post-Adjustment		Pre-Adjustment		Error Correction		Post-Adjustment
Unaudited Condensed Consolidated Statement of Comprehensive Income:
Cost of services	$	25,426	$	321	$	25,747	$	73,044	$	775	$	73,819
Income (loss) from continuing operations before income taxes	1,310		(321)		989		9,322		(775)		8,547
Income tax benefit	(5,422)		(84)		(5,506)		(2,315)		(204)		(2,519)
Income (loss) from continuing operations	6,732		(237)		6,495		11,637		(571)		11,066
Net income (loss)	893,058		(237)		892,821		998,001		(571)		997,430
Comprehensive income (loss)	896,678		(237)		896,441		1,002,707		(571)		1,002,136
Net income per share, basic and diluted:
Basic - Income from continuing operations	$	0.13	$	—	$	0.13	$	0.23	$	(0.01)	$	0.22
Basic - Net income per share	$	17.86	$	—	$	17.86	$	19.96	$	(0.01)	$	19.95
Diluted - Income from continuing operations	$	0.13	$	—	$	0.13	$	0.23	$	(0.01)	$	0.22
Diluted - Net income per share	$	17.81	$	—	$	17.81	$	19.90	$	(0.01)	$	19.89

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues and expenses and related disclosures. On an on-going basis we evaluate significant estimates and assumptions, including, but not limited to, revenue recognition, stock-based compensation, estimated useful lives of assets, intangible assets subject to amortization, and the computation of income taxes. Future events and their effects cannot be predicted with certainty; accordingly, the Company’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the financial statements will change as new events occur, as more experience is acquired, as additional information is obtained, and as the Company’s operating environment changes. Management evaluates and updates assumptions and estimates on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions.

Adoption of New Accounting Principles

In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-10, “Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance,” ("ASU 2021-10") which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information about the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements and any significant terms and conditions of the agreements, including commitments and contingencies. On July 1, 2022, we adopted ASU 2021-10 and have included the new disclosure requirements in Note 11, Government Grants.

Other than the matter described above, there have been no material developments related to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company's unaudited condensed consolidated financial statements and note disclosures, from those disclosed in the Company's 2021 Form 10-K, that would be expected to impact the Company.