Segments

12 Months Ended

Dec. 31, 2011

Segments [Abstract]

Segments

Note 7.   Segments

Our operations are conducted in three segments as: (i) Fiber and Data, (ii) Equipment and (iii) Telecom.

Our Business Sector, made up of our Fiber and Data and Equipment Segments, serves customers across a five-state region with IP-based voice, transport, data and network solutions, managed services, network integration, equipment and support services. It specializes in providing integrated unified communication solutions for businesses of all sizes - from enterprise multi-office organizations to small and medium-sized businesses, primarily in the Upper Midwest. This Sector also provides fiber and data services to wholesale service providers, such as national and regional carriers and wireless carriers within the communications business.

The Telecom Sector provides telephone services to Mankato and adjacent areas of south central Minnesota and to eleven rural communities in northwest Iowa as an ILEC. The Telecom Sector operates fiber optic cable transport facilities in Minnesota and Iowa. The Telecom Sector offers an alternative choice for local telecommunications service, known as CLEC service in the communications industry, to customers in Minnesota and Iowa not currently in HickoryTech's ILEC service area. In addition, the Telecom Sector resells long distance service to Minnesota and Iowa subscribers in its ILEC and CLEC markets. The Telecom Sector, through NIBI, also provides data processing and related services to HickoryTech's other product lines and to other external telephone companies, municipalities, utilities and wireless and cable TV providers.

Our presentation of segments has changed from our previous filings to portray the organization as our chief operating decision-makers base their decisions. In 2011, with changes to our organizational and management structure, as well as the formation of a separate entity to isolate our equipment distribution operation, we were able to more clearly and completely separate our Business Sector into two reportable segments for operating decision-making. The segment information below has been reclassified to reflect these changes.

Segment information for the years ended December 31, 2011, 2010 and 2009 is as follows:

For Year Ended December 31
(Dollars in thousands)
							Corporate and
	Fiber and Data		Equipment		Telecom		Eliminations			Consolidated
2011							(Restated)			(Restated)
Revenue from unaffiliated customers	$	45,149	$	48,932	$	69,457	$	-		$	163,538
Intersegment revenue		773		-		1,632		(2,405	)		-
Total operating revenue		45,922		48,932		71,089		(2,405	)		163,538
Depreciation and amortization		6,394		302		16,270		90			23,056
Operating income (loss)		7,346		2,746		11,283		(1,720	)		19,655
Interest expense		2		-		58		6,215			6,275
Income taxes		2,922		1,094		4,472		(3,446	)		5,042
Net Income (loss)		4,423		1,651		6,776		(4,449	)		8,401
Total assets (A)		73,953		22,455		126,059		21,519			243,986
Property, plant and equipment, net		59,858		1,383		92,564		125			153,930
Additions to property, plant and equipment		11,553		428		9,392		67			21,440

							Corporate and
	Fiber and Data		Equipment		Telecom		Eliminations			Consolidated
2010							(Restated)			(Restated)
Revenue from unaffiliated customers	$	44,685	$	47,544	$	70,018	$	-		$	162,247
Intersegment revenue		542		-		1,976		(2,518	)		-
Total operating revenue		45,227		47,544		71,994		(2,518	)		162,247
Depreciation and amortization		5,778		392		15,737		115			22,022
Operating income (loss)		7,771		2,235		11,525		(563	)		20,968
Interest expense		-		-		58		4,026			4,084
Income taxes		3,169		913		4,832		(4,549	)		4,365
Net Income (loss)		4,603		1,348		6,652		(11	)		12,592
Total assets (A)		67,151		20,717		132,381		9,939			230,188
Property, plant and equipment, net		54,732		1,140		99,037		168			155,077
Additions to property, plant and equipment		14,247		217		8,424		-			22,888
							Corporate and
	Fiber and Data		Equipment		Telecom		Eliminations			Consolidated
2009							(Restated)			(Restated)
Revenue from unaffiliated customers	$	31,247	$	37,436	$	70,419	$	-		$	139,102
Intersegment revenue		500		-		1,217		(1,717	)		-
Total operating revenue		31,747		37,436		71,636		(1,717	)		139,102
Depreciation and amortization		4,999		414		15,680		84			21,177
Operating income (loss)		5,458		169		13,587		(629	)		18,585
Interest expense		2		-		95		5,443			5,540
Income taxes		2,218		81		5,451		(6,702	)		1,048
Net Income		3,240		122		8,068		672			12,102
Total assets (A)		60,781		12,075		140,494		9,133			222,483
Property, plant and equipment, net		45,691		1,176		106,328		283			153,478
Additions to property, plant and equipment		8,210		528		9,068		87			17,893

(A)   Breakout of total assets between the Fiber and Data and Equipment Segments is based on estimates for 2011, 2010 and 2009 as the two segments were not accounted for separately. Estimated total assets for the Equipment Segment in 2010 and 2009 do not include goodwill or other intangible assets.