Segment Information

12 Months Ended

Dec. 31, 2014

Segment Information

Segment Information

17. Segment Information

        The Company operates in the two reportable segments of telecommunications and data center colocation. This conclusion is based on how resources are allocated and performance is assessed by the Chief Executive Officer, the Company's chief operating decision maker. The telecommunications segment provides local voice services, long distance voice services, high-speed internet and video. In addition, the segment provides network access which includes data transport. Various related telephony services are provided including equipment and managed services. The data center colocation segment provides physical colocation, virtual colocation and various related telephony services.

        In 2013, the Company reevaluated its reportable segments. This was prompted by the acquisition of SystemMetrics and the Company's current strategic focus. Prior to the acquisition of SystemMetrics on September 30, 2013, the Company did not have data center colocation operations. Hence, the Company was in a single segment prior to 2013 under the revised reportable segment structure.

        The following table provides operating financial information for the Company's reportable segments for the years ended and as of December 31, 2014 and 2013 (dollars in thousands):

	Telecommunications		Data Center Colocation			Intersegment Elimination			Total
2014
Operating revenues	$	381,013	$	10,737		$	(1,011	)	$	390,739
Depreciation and amortization		76,325		1,689			—			78,014
Operating income (loss)		30,683		(212	)		—			30,471
Capital expenditures		103,588		118			—			103,706
Assets		777,412		24,556			—			801,968
2013
Operating revenues	$	389,168	$	2,188		$	(206	)	$	391,150
Depreciation and amortization		76,935		366			—			77,301
Operating income (loss)		41,907		(136	)		—			41,771
Capital expenditures		92,742		299			—			93,041
Assets		758,993		19,022			—			778,015

        Intersegment revenue represents network access services provided by the telecommunications segment for data center colocation. For the years ended December 31, 2014 and 2013, total operating income above reconciles to the consolidated statement of income as follows:

	Year Ended December 31,
	2014		2013
Operating income	$	30,471	$	41,771
Corporate other expense		16,462		22,501
Income before income tax provision	$	14,009	$	19,270

        The operating income of the telecommunications segment included the gain from the sale of property for $6.5 million for the year ended December 31, 2013.

        The following table provides information on the Company's revenue, net of intersegment eliminations, by product group (dollars in thousands):

	Year Ended December 31,
	2014		2013		2012
Local voice and other retail services	$	254,577	$	258,604	$	255,592
Network access services		125,425		130,358		129,906
Data center colocation		10,737		2,188		—
	$	390,739	$	391,150	$	385,498

        In 2014, the data center colocation segment sold equipment for $0.4 million to a technology company that is a wholly-owned investment of an officer of the data center colocation segment.