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STOCKHOLDER'S EQUITY | 9 Months Ended
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Sep. 30, 2020
Equity [Abstract] |
STOCKHOLDER'S EQUITY | STOCKHOLDER'S EQUITY Pursuant to the Company's 2019 Equity Incentive Plan, the Company has granted restricted stock units and options to purchase shares of the Company's Class A common stock to certain key individuals. Share-based Compensation Share-based compensation expenses are recorded in corporate expenses and were $5.9 million, $17.1 million, $14.7 million and $20.2 million for the Successor Company for three months ended September 30, 2020, the three months ended September 30, 2019, the nine months ended September 30, 2020 and the period from May 2, 2019 through September 30, 2019, respectively. Share-based compensation expenses for the Predecessor Company were $0.5 million for the period from January 1, 2019 through May 1, 2019. In August 2020, the Company issued performance-based restricted stock units ("Performance RSUs") to certain key employees. Such Performance RSUs vest upon the achievement of critical operational (cost savings) improvements and specific environmental, social and governance initiatives, which are being measured over an approximately 18-month period from the date of issuance. In the three months ended September 30, 2020, the Company recognized $1.1 million in relation to these Performance RSUs. As of September 30, 2020, there was $58.5 million of unrecognized compensation cost related to unvested share-based compensation arrangements with vesting based on service conditions. This cost is expected to be recognized over a weighted average period of approximately 3 years. In addition, as of September 30, 2020, there was $3.9 million of unrecognized compensation cost related to unvested share-based compensation arrangements that will vest based on certain performance conditions. Successor Common Stock and Special Warrants The Company is authorized to issue 2,100,000,000 shares, consisting of (a) 1,000,000,000 shares of Class A Common Stock, par value $0.001 per share (the “Class A Common Stock”), (b) 1,000,000,000 shares of Class B Common Stock, par value $0.001 per share (the “Class B Common Stock”), and (c) 100,000,000 shares of preferred stock, par value $0.001 per share (the “Preferred Stock”). The following table presents the Successor Company's Class A Common Stock, Class B Common Stock and Special Warrants issued and outstanding as of September 30, 2020:
| September 30, 2020 |  |  |
| (Unaudited) |  |  |
Successor Class A Common Stock, par value $.001 per share, 1,000,000,000 shares authorized | 63,447,152 |  |  |  |
Successor Class B Common Stock, par value $.001 per share, 1,000,000,000 shares authorized | 6,893,636 |  |  |  |
Successor Special Warrants | 76,051,430 |  |  |  |
Total Successor Class A Common Stock, Class B Common Stock and Special Warrants issued | 146,392,218 |  |  |  |
During the three and nine months ended September 30, 2020, stockholders converted 7,263 and 13,323 shares of the Class B common stock into Class A common stock, respectively. During the three and nine months ended September 30, 2019, stockholders converted 21,623 shares of the Class B common stock into Class A common stock. Special Warrants Each Special Warrant issued under the special warrant agreement entered into in connection with the Reorganization may be exercised by its holder to purchase one share of Successor Class A common stock or Successor Class B common stock at an exercise price of $0.001 per share, unless the Company in its sole discretion believes such exercise would, alone or in combination with any other existing or proposed ownership of common stock, result in, subject to certain exceptions, (a) such exercising holder owning more than 4.99 percent of the Successor Company's outstanding Class A common stock, (b) more than 22.5 percent of the Successor Company's capital stock or voting interests being owned directly or indirectly by foreign individuals or entities, (c) the Company exceeding any other applicable foreign ownership threshold or (d) violation of any provision of the Communications Act or restrictions on ownership or transfer imposed by the Company's certificate of incorporation or the decisions, rules and policies of the FCC. Any holder exercising Special Warrants must complete and timely deliver to the warrant agent the required exercise forms and certifications required under the special warrant agreement. The Communications Act and FCC regulations prohibit foreign entities or individuals from indirectly (i.e., through a parent company) owning or voting more than 25 percent of a licensee’s equity, unless the FCC determines that greater indirect foreign ownership is in the public interest. As described further in Note 7 above, on July 25, 2019, the Company filed a PDR requesting FCC consent to exceed the 25 percent foreign ownership and voting benchmarks that currently apply to us. On November 5, 2020, the FCC issued the Declaratory Ruling granting the relief requested by the PDR. On November 9, 2020, the Company sent Exchange Notices to the holders of Special Warrants, notifying them of the Exchange process. In the Exchange, the Company will exchange all or a portion of the outstanding Special Warrants into Class A common stock or Class B common stock, subject to compliance with the Declaratory Ruling, the Communications Act, and FCC rules. During the three and nine months ended September 30, 2020, stockholders exercised 1,986,278 and 4,990,132 Special Warrants for an equivalent number of shares of Class A common stock, respectively. During the three and nine months ended September 30, 2020, stockholders exercised 704 and 2,049 Special Warrants for an equivalent number of shares of Class B common stock, respectively. During the three months ended September 30, 2019 and the period from May 2, 2019 through September 30, 2019, stockholders exercised 164,310 Special Warrants for an equivalent number of shares of Class A common stock. During the three months ended September 30, 2019 and the period from May 2, 2019 through September 30, 2019, stockholders exercised 32 Special Warrants for an equivalent number of shares of Class B common stock. Stockholder Rights Plan On May 5, 2020, the Company’s Board of Directors (the “Board”) approved the adoption of a short-term stockholder rights plan (the “Stockholder Rights Plan”) in order to protect the best interests of all Company stockholders during the current period of high equity-market volatility and price disruption. Pursuant to the stockholder rights plan, the Board has declared a dividend distribution of one right on each outstanding share of the Company’s Class A common stock, share of Class B common stock and special warrant issued in connection with the Plan of Reorganization. The record date for such dividend distribution was May 18, 2020. Under the Stockholder Rights Plan, subject to certain exceptions, the rights will generally be exercisable only if, in a transaction not approved by the Board, a person or group acquires beneficial ownership of 10% or more of the Company’s Class A common stock (or 20% in the case of certain passive investors), including through such person’s ownership of the convertible Class B common stock and/or special warrants, as further detailed in the Stockholder Rights Plan. In that situation, each holder of a right (other than the acquiring person or group) will have the right to purchase, upon payment of the exercise price, a number of shares of the Company’s Class A common stock, Class B common stock or special warrants, as applicable, having a market value of twice such price. In addition, the Stockholder Rights Plan contains a similar provision if the Company is acquired in a merger or other business combination after an acquiring person acquires beneficial ownership of 10% or more of the Company’s Class A common stock (or 20% in the case of certain passive investors). The Stockholder Rights Plan has a duration of less than one year, expiring on May 5, 2021. The Stockholder Rights Plan may also be terminated, or the rights may be redeemed, by action of the Company prior to the scheduled expiration date under certain circumstances, including if the Board determines that market and other conditions warrant, which the Board intends to monitor. The adoption of the Stockholder Rights Plan will not be a taxable event and will not have any impact on the Company’s financial reporting. Computation of Income (Loss) per Share
(In thousands, except per share data) | Successor Company |  |  |  |
| Three Months Ended September 30, |  |
| 2020 |  | 2019 |  |  |  |
NUMERATOR: |  |  |  |  |  |  |
Net income (loss) attributable to the Company – common shares | $ | (32,112) |  |  | $ | 12,374 |  |  |  |  |
DENOMINATOR(1): |  |  |  |  |  |  |
Weighted average common shares outstanding - basic | 146,152 |  |  | 145,720 |  |  |  |  |
Stock options and restricted stock(2): | — |  |  | 120 |  |  |  |  |
Weighted average common shares outstanding - diluted | 146,152 |  |  | 145,840 |  |  |  |  |
Net income (loss) attributable to the Company per common share: |  |  |  |  |  |  |
Basic | $ | (0.22) |  |  | $ | 0.08 |  |  |  |  |
Diluted | $ | (0.22) |  |  | $ | 0.08 |  |  |  |  |
(In thousands, except per share data) |  |  | Successor Company |  |  | Predecessor Company
|  |  |  |  | Nine Months Ended September 30, |  | Period from May 2, 2019 through September 30, |  |  | Period from January 1, 2019 through May 1,
|  |  |  |  | 2020 |  | 2019 |  |  | 2019
NUMERATOR: |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to the Company – common shares |  |  |  |  | $ | (1,918,165) |  |  | $ | 51,167 |  |  |  | $ | 11,184,141 |
Exclude: |  |  |  |  |  |  |  |  |  |
Income from discontinued operations, net of tax |  |  |  |  | $ | — |  |  | $ | — |  |  |  | $ | 1,685,123 |
Noncontrolling interest from discontinued operations, net of tax - common shares |  |  |  |  | — |  |  | — |  |  |  | 19,028 |
Total income from discontinued operations, net of tax - common shares |  |  |  |  | $ | — |  |  | $ | — |  |  |  | $ | 1,704,151 |
Income (loss) from continuing operations |  |  |  |  | $ | (1,918,165) |  |  | $ | 51,167 |  |  |  | $ | 9,479,990 |
DENOMINATOR(1): |  |  |  |  |  |  |  |  |  |
Weighted average common shares outstanding - basic |  |  |  |  | 145,911 |  |  | 145,543 |  |  |  | 86,241 |
Stock options and restricted stock(2): |  |  |  |  | — |  |  | 112 |  |  |  | — |
Weighted average common shares outstanding - diluted |  |  |  |  | 145,911 |  |  | 145,655 |  |  |  | 86,241 |
Net income (loss) attributable to the Company per common share: |  |  |  |  |  |  |  |  |  |
From continuing operations - Basic |  |  |  |  | $ | (13.15) |  |  | $ | 0.35 |  |  |  | $ | 109.92 |
From discontinued operations - Basic |  |  |  |  | $ | — |  |  | $ | — |  |  |  | $ | 19.76 |
From continuing operations - Diluted |  |  |  |  | $ | (13.15) |  |  | $ | 0.35 |  |  |  | $ | 109.92 |
From discontinued operations - Diluted |  |  |  |  | $ | — |  |  | $ | — |  |  |  | $ | 19.76 |
(1)All of the outstanding Special Warrants are included in both the basic and diluted weighted average common shares outstanding of the Successor Company for the three months ended September 30, 2020, the period from May 2, 2019 through September 30, 2019 and the nine months ended September 30, 2020. (2)Outstanding equity awards representing 9.6 million, 8.1 million, 5.6 million and 8.5 million shares of Class A common stock of the Successor Company for the three months ended September 30, 2020, the three months ended September 30, 2019, the period from May 2, 2019 through September 30, 2019 and the nine months ended September 30, 2020 were not included in the computation of diluted earnings per share because to do so would have been antidilutive. Outstanding equity awards representing 5.9 million shares of Class A common stock of the Predecessor Company for the period from January 1, 2019 through May 1, 2019 were not included in the computation of diluted earnings per share because to do so would have been antidilutive.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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