Segment Information

12 Months Ended

Dec. 31, 2015

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.

The following table provides operating financial information for the Company’s reportable segments for the years ended December 31, 2015, 2014 and 2013 and as of December 31, 2015 and 2014 (dollars in thousands):

	Tele-		Data Center		Intersegment
	communications		Colocation		Elimination		Total
2015
Operating revenues	$	383,767	$	11,094	$	(1,448)	$	393,413
Depreciation and amortization		85,643		2,236		—		87,879
Operating income (loss)		20,161		(899)		—		19,262
Capital expenditures		97,838		604		—		98,442
Assets		777,139		22,556		—		799,695
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		772,168		24,556		—		796,724
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		752,702		19,022		—		771,724

Intersegment revenue represents network access services provided by the telecommunications segment for data center colocation. For the years ended December 31, 2015, 2014 and 2013, total operating income above reconciles to the consolidated statement of income as follows:

	For the Year Ended
	December 31,
	2015		2014		2013
Operating income	$	19,262	$	30,471	$	41,771
Corporate other expense		16,805		16,462		22,501
Income before income tax provision	$	2,457	$	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):

	For the Year Ended December 31,
	2015		2014		2013
Local voice and other retail services	$	318,644	$	316,441	$	321,735
Wholesale carrier services and subsidies		63,675		63,561		67,227
Data center colocation		11,094		10,737		2,188
	$	393,413	$	390,739	$	391,150

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.