Segment Reporting

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

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 maker.  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 had provided 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. With the recent acquisition of nTelos, the Company's wireless service has expanded to include south-central and western Virginia, West Virginia, and small portions of Kentucky and Ohio. 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 southern Virginia and West Virginia. It does not include video, internet and voice services provided to customers in Shenandoah County, Virginia.

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, Virginia. The segment also provides video and cable modem services in portions of Shenandoah County, and leases fiber optic facilities throughout the northern Shenandoah Valley of Virginia, northern Virginia and adjacent areas along the Interstate 81 corridor through West Virginia, Maryland and portions of central and southern Pennsylvania.

Year ended December 31, 2016

(In thousands)

	Wireless		Cable		Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	359,769	$	99,070	$	19,646	—			—			$	478,485
Other revenues	24,364		7,927		24,512		—			—			56,803
Total external revenues	384,133		106,997		44,158		—			—			535,288
Internal revenues	4,620		1,737		30,816		—			(37,173		)	—
Total operating revenues	388,753		108,734		74,974		—			(37,173		)	535,288
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below	133,113		58,581		36,259		—			(34,433		)	193,520
Selling, general and administrative, exclusive of depreciation and amortization shown below	95,851		19,248		6,474		14,492			(2,740		)	133,325
Integration and acquisition expenses	25,927		—		—		16,305			—			42,232
Depreciation and amortization	107,621		23,908		11,717		439			—			143,685
Total operating expenses	362,512		101,737		54,450		31,236			(37,173		)	512,762
Operating income (loss)	$	26,241	$	6,997	$	20,524	$	(31,236	)	$	—		$	22,526

Year ended December 31, 2015

(In thousands)

	Wireless		Cable		Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	192,752	$	88,980	$	19,386	—			—			$	301,118
Other revenues	11,609		7,793		21,965		—			—			41,367
Total external revenues	204,361		96,773		41,351		—			—			342,485
Internal revenues	4,440		849		26,069		—			(31,358		)	—
Total operating revenues	208,801		97,622		67,420		—			(31,358		)	342,485
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below	63,570		54,611		31,668		—			(28,519		)	121,330
Selling, general and administrative, exclusive of depreciation and amortization shown below	35,792		19,412		6,612		13,844			(2,839		)	72,821
Integration and acquisition expenses	—		—		—		3,546			—			3,546
Depreciation and amortization	34,416		23,097		12,736		453			—			70,702
Total operating expenses	133,778		97,120		51,016		17,843			(31,358		)	268,399
Operating income (loss)	$	75,023	$	502	$	16,404	$	(17,843	)	$	—		$	74,086

Year ended December 31, 2014

(In thousands)

	Wireless		Cable			Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	191,147	$	77,179		$	18,919	—			—			$	287,245
Other revenues	11,867		7,224			20,610		—			—			39,701
Total external revenues	203,014		84,403			39,529		—			—			326,946
Internal revenues	4,440		150			23,506		—			(28,096		)	—
Total operating revenues	207,454		84,553			63,035		—			(28,096		)	326,946
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below	73,290		51,982			30,088		—			(25,617		)	129,743
Selling, general and administrative, exclusive of depreciation and amortization shown below	33,171		19,521			6,009		13,148			(2,479		)	69,370
Depreciation and amortization	31,111		23,148			11,224		407			—			65,890
Total operating expenses	137,572		94,651			47,321		13,555			(28,096		)	265,003
Operating income (loss)	$	69,882	$	(10,098	)	$	15,714	$	(13,555	)	$	—		$	61,943

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)	2016			2015			2014
Total consolidated operating income	$	22,526		$	74,086		$	61,943
Interest expense	(25,102		)	(7,355		)	(8,148		)
Non-operating income, net	4,521			1,859			2,239
Income from continuing operations before income taxes	$	1,945		$	68,590		$	56,034

The Company’s assets by segment are as follows:

(In thousands) 

	December 31, 2016			December 31, 2015
Wireless	$	1,101,716		$	205,718
Cable	218,471			209,132
Wireline	115,282			105,369
Other	1,059,898			463,390
Combined totals	2,495,367			983,609
Inter-segment eliminations	(1,010,960		)	(356,458		)
Consolidated totals	$	1,484,407		$	627,151