Segment Information

12 Months Ended

Dec. 31, 2016

Segment Information

Segment Information

16. Segment Information

The Company operates in the two reportable segments of telecommunications and data center services. 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, video, high‑speed internet and long distance voice services. 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, 2016, 2015 and 2014 and as of December 31, 2016 and 2015 (dollars in thousands):

	Tele-				Intersegment
	communications		Data Center		Elimination		Total
2016
Operating revenues	$	382,676	$	12,435	$	(2,148)	$	392,963
Depreciation and amortization		87,787		2,129		—		89,916
Operating income (loss)		19,526		(734)		—		18,792
Capital expenditures		102,427		946		—		103,373
Assets		780,930		22,991		—		803,921
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

Intersegment revenue represents network access services provided by the telecommunications segment for data center colocation. For the years ended December 31, 2016, 2015 and 2014, total operating income above reconciles to the consolidated statement of income as follows:

	For the Year Ended December 31,
	2016		2015		2014
Operating income	$	18,792	$	19,262	$	30,471
Corporate other expense		17,095		16,805		16,462
Income before income tax provision	$	1,697	$	2,457	$	14,009

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,
	2016		2015		2014
Local voice and other retail services	$	326,864	$	325,889	$	322,231
Wholesale carrier data services		53,664		56,430		57,771
Data center		12,435		11,094		10,737
	$	392,963	$	393,413	$	390,739

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