Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information

Segment Information

Note 16 — Segment Information

We operate in three reportable segments, Hospitality, Advertising Services and Healthcare.  We organize and manage our segments based upon the products and services delivered and the nature of our customer base receiving those products and services.  The Hospitality business distributes entertainment, media and connectivity services to the hospitality industry.  Our Advertising Services business generates revenue from the sale of advertising-based media services within our hospitality customer base, utilizing the same server-based technology or by satellite transmission.  Our Healthcare business generates revenue from the sale of interactive system hardware, software licenses, installation services and related programming and support agreements to the healthcare market.

Our Hospitality and Advertising Services businesses provide a variety of interactive and media network services to hotels and/or the respective hotels’ guests.  The products can include interactive video-on-demand programming, music, games, cable television programming, Internet services or advertising services, and have an analogous consumer base.  All products and services are delivered through a proprietary system platform utilizing satellite delivery technology, and are geared towards the hotels and their guests.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies, except certain expenses are not allocated to the segments.  These unallocated expenses are corporate overhead, depreciation and amortization expenses, restructuring charges, other operating income (expense), interest expense, gains and losses on the extinguishment and early retirement of debt, other income (expense) and income tax expense.  We evaluate segment performance based upon operating profit and loss before the aforementioned expenses.

Financial information related to our reportable segments for the years ended December 31 was as follows (dollar amounts in thousands):

	2011			2010			2009
Total revenue:
Hospitality	$	400,963		$	433,787		$	469,743
Advertising Services	9,956			9,867			6,915
Healthcare	10,343			8,518			7,834
Total	$	421,262		$	452,172		$	484,492
Operating profit:
Hospitality	$	117,668		$	128,879		$	146,714
Advertising Services	1,915			769			(2,894		)
Healthcare	2,311			2,070			1,903
Operating profit	121,894			131,718			145,723
Corporate	(19,245		)	(24,672		)	(23,245		)
Depreciation and amortization	(72,235		)	(83,236		)	(100,309		)
Restructuring charge	(1,923		)	(421		)	(603		)
Other operating (expense) income	(31		)	21			126
Interest expense	(31,206		)	(33,537		)	(38,092		)
Gain on extinguishment of debt	-			-			9,292
Loss on early retirement of debt	(158		)	(1,050		)	(1,537		)
Other (expense) income	(349		)	326			(747		)
Loss before income taxes	$	(3,253	)	$	(10,851	)	$	(9,392	)
Capital expenditures:
Hospitality	$	23,067		$	16,834		$	17,433
Advertising Services	60			166			214
Healthcare	183			247			249
Corporate	4,008			4,578			3,445
Total	$	27,318		$	21,825		$	21,341
Total assets:
Hospitality	$	372,572		$	406,085		$	468,609
Advertising Services	10,199			13,746			11,728
Healthcare	5,455			633			616
Corporate	20,446			23,542			27,401
Total	$	408,672		$	444,006		$	508,354

The following table presents revenues by country based on the location of the customer for the years ended December 31 (dollar amounts in thousands):

	2011		2010		2009
United States	$	394,601	$	423,883	$	456,167
Canada	23,448		24,804		24,992
Mexico	2,255		2,414		1,952
Other	958		1,071		1,381
Total	$	421,262	$	452,172	$	484,492

Property and equipment by country based on the location of the assets were as follows at December 31 (dollar amounts in thousands):

	2011		2010		2009
United States	$	108,680	$	142,713	$	188,805
Canada	6,645		9,826		13,218
Mexico	3,839		4,378		4,640
Total	$	119,164	$	156,917	$	206,663