Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Reporting

Note 15.  Segment Reporting

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision makers.  The Company has three reportable segments, which the Company operates and manages as strategic business units organized by lines of business: (1) Wireless, (2) Wireline, and (3) Cable.   A fourth segment, Other, primarily includes Shenandoah Telecommunications Company, the parent holding company as well as certain general and administrative costs historically charged to Converged Services that cannot be allocated to discontinued operations.

The Wireless segment provides digital wireless service to a portion of a four-state area covering the region from Harrisburg, York and Altoona, Pennsylvania, to Harrisonburg, Virginia, as a Sprint PCS Affiliate of Sprint Nextel.  This segment also owns cell site towers built on leased land, and leases space on these towers to both affiliates and non-affiliated service providers.

The Wireline segment provides regulated and unregulated voice services, dial-up and DSL internet access, and long distance access services throughout Shenandoah County and portions of northwestern Augusta County, Virginia, and leases fiber optic facilities throughout the northern Shenandoah Valley of Virginia, northern Virginia and adjacent areas along the Interstate 81 corridor, including portions of West Virginia and Maryland.

The Cable segment provides video, internet and voice services in Virginia, West Virginia and Maryland.  It includes the operations acquired from JetBroadband, LLC, since July 30, 2010, and the operations acquired from Suddenlink since November 30, 2010.

Selected financial data for each segment is as follows:

Year ended December 31, 2011 (In thousands)	Wireless		Wireline		Cable			Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	137,118	$	14,428	$	59,051		$	-		$	-		$	210,597
Other revenues		13,129		18,686		8,733			-			-			40,548
Total external revenues		150,247		33,114		67,784			-			-			251,145
Internal revenues		3,191		16,414		276			-			(19,881	)		-
Total operating revenues		153,438		49,528		68,060			-			(19,881	)		251,145
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		56,705		19,702		47,417			125			(17,309	)		106,640
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		29,455		7,528		18,827			3,207			(2,572	)		56,445
Depreciation and amortization		23,906		8,453		23,198			213			-			55,770
Total operating expenses		110,066		35,683		89,442			3,545			(19,881	)		218,855
Operating income (loss)	$	43,372	$	13,845	$	(21,382	)	$	(3,545	)	$	-		$	32,290

Year ended December 31, 2010 (In thousands)	Wireless		Wireline		Cable			Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	111,279	$	14,241	$	32,527		$	-		$	-		$	158,047
Other revenues		13,575		19,343		4,241			-			-			37,159
Total external revenues		124,854		33,584		36,768			-			-			195,206
Internal revenues		3,034		13,617		51			-			(16,702	)		-
Total operating revenues		127,888		47,201		36,819			-			(16,702	)		195,206
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		44,794		17,503		26,904			226			(14,754	)		74,673
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		21,558		8,845		13,858			3,259			(1,948	)		45,572
Depreciation and amortization		23,187		7,883		11,314			246			-			42,630
Total operating expenses (1)		89,539		34,231		52,076			3,731			(16,702	)		162,875
Gain on sale of directory		-		4,000		-									4,000
Operating income (loss)	$	38,349	$	16,970	$	(15,257	)	$	(3,731	)	$	-		$	36,331

(1) Total operating expenses for 2010 includes $3.8 million of expense, pre-tax, resulting from the settlement of the qualified pension plan and curtailment of the SERP during the second quarter of 2010.

Year ended December 31, 2009 (In thousands)	Wireless		Wireline		Cable			Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	102,196	$	13,296	$	14,568		$	-		$	-		$	130,060
Other revenues		10,839		18,754		1,282			-			-			30,875
Total external revenues		113,035		32,050		15,850			-			-			160,935
Internal revenues		2,660		13,013		32			-			(15,705	)		-
Total operating revenues		115,695		45,063		15,882			-			(15,705	)		160,935
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		38,129		16,773		12,731			310			(13,730	)		54,213
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		17,098		7,397		5,408			3,224			(1,975	)		31,152
Depreciation and amortization		20,293		8,317		3,700			320			-			32,630
Total operating expenses		75,520		32,487		21,839			3,854			(15,705	)		117,995
Operating income (loss)	$	40,175	$	12,576	$	(5,957	)	$	(3,854	)	$	-		$	42,940

A reconciliation of the total of the reportable segments' operating income to consolidated income from continuing operations before income taxes is as follows:

	Years Ended December 31,
(In thousands)	2011			2010			2009
Total consolidated operating income	$	32,290		$	36,331		$	42,940
Interest expense		(8,289	)		(4,716	)		(1,361	)
Non-operating income, net		204			552			1,083
Income from continuing operations before income taxes	$	24,205		$	32,167		$	42,662

The Company's assets by segment are as follows:

(In thousands)	December 31, 2011			December 31, 2010
Wireless	$	147,093		$	124,854
Wireline		84,456			78,552
Cable		212,683			208,039
Other (includes assets held for sale)		381,230			393,340
Combined totals		825,462			804,785
Inter-segment eliminations		(345,483	)		(338,348	)
Consolidated totals	$	479,979		$	466,437