Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Reporting

Note 16.  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, 2012 (In thousands)	Wireless		Cable			Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	162,912	$	66,010		$	15,021		-			-		$	243,943
Other revenues		13,398		10,024			20,710		-			-			44,132
Total external revenues		176,310		76,034			35,731		-			-			288,075
Internal revenues		3,328		289			18,927		-			(22,544	)		-
Total operating revenues		179,638		76,323			54,658		-			(22,544	)		288,075
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		63,906		48,978			24,785		25			(20,287	)		117,407
Goodwill impairment		-		10,952			-		-			-			10,952
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		30,716		22,335			6,859		2,993			(2,257	)		60,646
Depreciation and amortization		31,660		23,519			9,171		62			-			64,412
Total operating expenses		126,282		105,784			40,815		3,080			(22,544	)		253,417
Operating income (loss)	$	53,356	$	(29,461	)	$	13,843	$	(3,080	)	$	-		$	34,658

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

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

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)	2012			2011			2010
Total consolidated operating income	$	34,658		$	32,290		$	36,331
Interest expense		(7,850	)		(8,289	)		(4,716	)
Non-operating income, net		1,803			204			552
Income from continuing operations before income taxes	$	28,611		$	24,205		$	32,167

The Company's assets by segment are as follows:

(In thousands)	December 31, 2012			December 31, 2011
Wireless	$	179,929		$	147,093
Cable		202,436			212,683
Wireline		88,776			84,456
Other (includes assets held for sale)		458,650			381,230
Combined totals		929,791			825,462
Inter-segment eliminations		(359,051	)		(345,483	)
Consolidated totals	$	570,740		$	479,979