XML 24 R13.htm IDEA: XBRL DOCUMENT v3.25.2
REVENUE RECOGNITION AND RECEIVABLES
 6 Months Ended
Jun. 30, 2025
REVENUE RECOGNITION AND RECEIVABLES  
REVENUE RECOGNITION AND RECEIVABLES

3. REVENUE RECOGNITION AND RECEIVABLES

The Company records revenue in accordance with ASC 606 from contracts with customers and ASC 842 from lease agreements, as well as government grants. Lease revenue recognized under ASC 842 is disclosed in Note 4 and government support revenue is disclosed in Note 8.

Timing of Revenue Recognition

Revenue recognized consisted of the following for the periods presented below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended June 30, 2025

​

Three months ended June 30, 2024

​

International

​

US

​

​

​

​

International

​

US

​

​

​

​

Telecom

​

Telecom

​

Total

​

Telecom

​

Telecom

​

Total

Services transferred over time

$

90,196

​

$

69,474

​

$

159,670

​

$

90,271

​

$

71,829

​

$

162,100

Goods and services transferred at a point in time

​

3,108

​

​

3,706

​

​

6,814

​

​

3,618

​

​

3,648

​

​

7,266

Total revenue accounted for under ASC 606

$

93,304

​

$

73,180

​

$

166,484

​

$

93,889

​

$

75,477

​

$

169,366

Operating lease income

​

221

​

​

1,827

​

​

2,048

​

​

75

​

​

2,036

​

​

2,111

Government support revenue (1)

​

1,370

​

​

11,398

​

​

12,768

​

​

1,393

​

​

10,411

​

​

11,804

Total revenue

$

94,895

​

$

86,405

​

$

181,300

​

$

95,357

​

$

87,924

​

$

183,281

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six months ended June 30, 2025

​

Six months ended June 30, 2024

​

International

​

US

​

​

​

​

International

​

US

​

​

​

​

Telecom

​

Telecom

​

Total

​

Telecom

​

Telecom

​

Total

Services transferred over time

$

179,712

​

$

138,179

​

$

317,891

​

$

178,831

​

$

149,872

​

$

328,703

Goods and services transferred at a point in time

​

6,620

​

​

6,612

​

​

13,232

​

​

6,652

​

​

6,919

​

​

13,571

Total revenue accounted for under ASC 606

$

186,332

​

$

144,791

​

$

331,123

​

$

185,483

​

$

156,791

​

$

342,274

Operating lease income

​

376

​

​

3,655

​

​

4,031

​

​

147

​

​

4,070

​

​

4,217

Government support revenue (1)

​

2,682

​

​

22,758

​

​

25,440

​

​

2,786

​

​

20,799

​

​

23,585

Total revenue

$

189,390

​

$

171,204

​

$

360,594

​

$

188,416

​

$

181,660

​

$

370,076

​

(1)Revenue recognized from CAF II, USF and RDOF programs. Refer to Note 8.

Contract Assets and Liabilities

In July 2019, the Company entered into a Network Build and Maintenance Agreement with AT&T Mobility, LLC (“AT&T”) that was subsequently amended through March 31, 2025 (the “FirstNet Agreement”). In connection with the FirstNet Agreement, the Company is building a portion of AT&T’s network for the First Responder Network Authority in or near the Company’s current operating areas in the western United States (the “FirstNet Transaction”). The FirstNet Transaction includes construction and service performance obligations. The current portion of receivables under this agreement is recorded in customer receivable and the long-term portion is recorded in customer receivable long-term on the Company’s balance sheet.

Contract assets and liabilities consisted of the following (amounts in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2025

​

December 31, 2024

​

​

$ Change

​

% Change

Contract asset – current

$

3,526

​

$

3,920

​

$

(394)

​

​

(10.1)

%

Contract asset – noncurrent

​

4,701

​

​

5,368

​

​

(667)

​

​

(12.4)

%

Contract liability – current

​

(30,917)

​

​

(28,932)

​

​

(1,985)

​

​

6.9

%

Contract liability – noncurrent

​

(51,393)

​

​

(55,116)

​

​

3,723

​

​

(6.8)

%

Net contract liability

$

(74,083)

​

$

(74,760)

​

$

677

​

​

(0.9)

%

​

The decrease in the Company’s net contract liability was due to the timing of customer prepayments, contract billings, and recognition of deferred revenue. During the six months ended June 30, 2025, the Company recognized revenue of $22.8 million related to its December 31, 2024 contract liability and amortized $2.1 million of the December 31, 2024 contract asset to revenue. During the six months ended June 30, 2024, the Company recognized revenue of $22.2 million related to its December 31, 2023 contract liability and amortized $2.5 million of the December 31, 2023 contract asset to revenue.

Contract Acquisition Costs

The June 30, 2025 and December 31, 2024 balance sheets include contract acquisition costs of $11.3 million and $10.7 million, respectively, in other assets. During the three and six months ended June 30, 2025, the Company amortized $1.7 million and $3.5 million, respectively, of contract acquisition costs. During the three and six months ended June 30, 2024, the Company amortized $1.7 million and $3.3 million, respectively, of contract acquisition costs.

Remaining Performance Obligations

Remaining performance obligations represent the transaction price allocated to unsatisfied performance obligations of certain multiyear Mobility and Fixed communication services contracts, Managed Services contracts, and the Company’s Carrier Services construction and service contracts. The transaction price allocated to unsatisfied performance obligations was $580 million at June 30, 2025. The Company expects to satisfy approximately 44% of the remaining performance obligations and recognize the transaction price within 24 months and approximately $60 million annually from 2027 through 2032. The Company omits performance obligations with a duration of one year or less and variable consideration under the right to invoice or wholly unsatisfied performance obligation practical expedients from this disclosure.

Disaggregation

The Company's revenue is presented on a disaggregated basis in Note 12 based on an evaluation of disclosures outside the financial statements, information regularly reviewed by the chief operating decision makers for evaluating the financial performance of operating segments and other information that is used for performance evaluation and resource allocations. This includes revenue from Communication Services, Construction, and Other revenue.

Communication Services revenue is further disaggregated into business and consumer Mobility, business and consumer Fixed, Carrier Services, and Other services. Other revenue is further disaggregated into Managed Services revenue.

Receivables

The Company records an estimate of future credit losses in conjunction with revenue transactions based on the information available including historical experience and management’s expectations of future conditions. Those estimates are updated as additional information becomes available. The Company’s allowance for uncollectible accounts receivable is based on management’s assessment of the collectability of assets pooled together with similar risk characteristics.

The Company had gross accounts receivables of $104.0 million and $98.8 million as of June 30, 2025 and December 31, 2024, respectively. The Company also recorded allowances for credit losses against these receivables of $14.1 million and $15.1 million as of June 30, 2025 and December 31, 2024, respectively.

In addition, the Company has also recorded a receivable under the FirstNet Agreement totaling $47.2 million as of June 30, 2025 of which $8.2 million was current and $39.0 million was long-term and had a receivable under that same agreement of $49.0 million as of December 31, 2024, of which $8.0 million was current and $41.0 million was long-term. As of June 30, 2025, the Company has recorded $41.3 million of receivables under certain government support agreements which include $32.7 million under the Replace and Remove Program and $8.6 million related to the Company’s participation in other government support programs. As of December 31, 2024, the Company had recorded $50.5 million of receivables under certain government support agreements which included $37.7 million under the Replace and Remove Program and $12.8 million under the Company’s participation in other government support programs (refer to Note 8).

The Company monitors receivables through the use of historical operating data adjusted for the expectation of future performance as appropriate. Activity in the allowance for credit losses is below (in thousands):

​

​

​

​

​

​

​

​

​

​

Six months ended

​

    

June 30, 2025

    

June 30, 2024

​

​

​

​

​

​

​

Balance at beginning of period

 

$

15,132

​

$

16,362

Current period provision for expected losses

 

​

4,135

​

​

2,855

Write-offs charged against the allowance

 

​

(5,326)

​

​

(2,918)

Recoveries collected

​

​

147

​

​

133

Balance at end of period

​

$

14,088

​

$

16,432

​