Segment Reporting

12 Months Ended

Dec. 31, 2013

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) Cable, and (3) Wireline.   A fourth segment, Other, primarily includes Shenandoah Telecommunications Company, the parent holding company.

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.  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 Cable segment provides video, internet and voice services in Virginia, West Virginia and Maryland, and leases fiber optic facilities throughout its service area.

The Wireline segment provides regulated and unregulated voice services, DSL internet access, and long distance access services throughout Shenandoah County and portions of Rockingham, Frederick, Warren and Augusta counties in 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.

Selected financial data for each segment is as follows:

Year ended December 31, 2013 (In thousands)	Wireless		Cable			Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	182,955	$	70,529		$	15,506		-			-		$	268,990
Other revenues		10,842		10,771			18,339		-			-			39,952
Total external revenues		193,797		81,300			33,845		-			-			308,942
Internal revenues		4,328		123			20,074		-			(24,525	)		-
Total operating revenues		198,125		81,423			53,919		-			(24,525	)		308,942
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		72,995		50,151			24,219		-			(22,225	)		125,140
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		36,828		23,189			6,950		3,006			(2,300	)		67,673
Depreciation and amortization		28,177		22,663			9,848		34			-			60,722
Total operating expenses		138,000		96,003			41,017		3,040			(24,525	)		253,535
Operating income (loss)	$	60,125	$	(14,580	)	$	12,902	$	(3,040	)	$	-		$	55,407
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

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)	2013			2012			2011
Total consolidated operating income	$	55,407		$	34,658		$	32,290
Interest expense		(8,468	)		(7,850	)		(8,289	)
Non-operating income, net		2,525			1,803			204
Income from continuing operations before income taxes	$	49,464		$	28,611		$	24,205

The Company’s assets by segment are as follows:

(In thousands)	December 31, 2013			December 31, 2012
Wireless	$	229,038		$	179,929
Cable		199,184			202,436
Wireline		92,455			88,776
Other		435,804			458,650
Combined totals		956,481			929,791
Inter-segment eliminations		(359,475	)		(359,051	)
Consolidated totals	$	597,006		$	570,740