Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

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.

Prior to the recent acquisition of nTelos, 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, 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.

Three months ended March 31, 2017

(in thousands)

	Wireless		Cable		Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	108,186	$	26,411	$	5,048	$	—		$	—		$	139,645
Other	6,042		2,035		6,158		—			—			14,235
Total external revenues	114,228		28,446		11,206		—			—			153,880
Internal revenues	1,235		567		7,948		—			(9,750		)	—
Total operating revenues	115,463		29,013		19,154		—			(9,750		)	153,880
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below	38,318		15,228		9,273		—			(9,058		)	53,761
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	28,464		4,858		1,676		5,847			(692		)	40,153
Integration and acquisition expenses	3,792		—		—		697			—			4,489
Depreciation and amortization	35,752		5,788		3,132		132			—			44,804
Total operating expenses	106,326		25,874		14,081		6,676			(9,750		)	143,207
Operating income (loss)	$	9,137	$	3,139	$	5,073	$	(6,676	)	$	—		$	10,673

Three months ended March 31, 2016

 (in thousands)

	Wireless		Cable		Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	52,179	$	24,340	$	4,960	$	—		$	—		$	81,479
Other	3,203		1,846		6,043		—						11,092
Total external revenues	55,382		26,186		11,003		—			—			92,571
Internal revenues	1,136		260		7,376					(8,772		)	—
Total operating revenues	56,518		26,446		18,379		—			(8,772		)	92,571
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below	16,578		14,647		8,643		—			(8,106		)	31,762
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	11,514		5,108		1,605		3,865			(666		)	21,426
Integration and acquisition expenses	—		—		—		332			—			332
Depreciation and amortization	8,494		6,095		3,033		117			—			17,739
Total operating expenses	36,586		25,850		13,281		4,314			(8,772		)	71,259
Operating income (loss)	$	19,932	$	596	$	5,098	$	(4,314	)	$	—		$	21,312

A reconciliation of the total of the reportable segments’ operating income (loss) to consolidated income (loss) before taxes is as follows:

	Three Months Ended March 31,
(in thousands)	2017			2016
Total consolidated operating income	$	10,673		$	21,312
Interest expense	(9,100		)	(1,619		)
Non-operating income, net	1,375			556
Income before income taxes	$	2,948		$	20,249

The Company’s assets by segment are as follows:

(in thousands)	March 31, 2017			December 31, 2016
Wireless	$	1,039,211		$	1,101,716
Cable	220,519			218,471
Wireline	116,390			115,282
Other	1,070,204			1,059,898
Combined totals	2,446,324			2,495,367
Inter-segment eliminations	(993,335		)	(1,010,960		)
Consolidated totals	$	1,452,989		$	1,484,407