Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

Segment Information

Note 17 — 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.  Certain operation costs previously classified as Hospitality are now considered Corporate.  As a result, amounts reported in prior periods have been reclassified to conform to the current classification.

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, reorganization items, 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):

	2012			2011			2010
Total revenues:
Hospitality	$	346,795		$	400,963		$	433,787
Advertising Services	6,433			9,956			9,867
Healthcare	11,461			10,343			8,518
Total	$	364,689		$	421,262		$	452,172
Operating profit:
Hospitality	$	88,571		$	119,486		$	132,156
Advertising Services	3,197			1,915			769
Healthcare	1,684			2,311			2,070
Operating profit	93,452			123,712			134,995
Corporate	(18,759		)	(21,063		)	(27,949		)
Depreciation and amortization	(63,766		)	(72,235		)	(83,236		)
Goodwill impairment charge	(92,614		)	-			-
Restructuring charge	(7,570		)	(1,923		)	(421		)
Reorganization items	(14,574		)	-			-
Other operating expense (income)	32			(31		)	21
Interest expense	(25,301		)	(31,206		)	(33,537		)
Loss on early retirement of debt	(312		)	(158		)	(1,050		)
Other (expense) income	(1,182		)	(349		)	326
Loss before income taxes	$	(130,594	)	$	(3,253	)	$	(10,851	)
Capital expenditures:
Hospitality	$	28,607		$	23,067		$	16,834
Advertising Services	3,620			60			166
Healthcare	192			183			247
Corporate	3,212			4,008			4,578
Total	$	35,631		$	27,318		$	21,825
Total assets:
Hospitality	$	219,124		$	372,572		$	406,085
Advertising Services	15,024			10,199			13,746
Healthcare	4,607			5,455			633
Corporate	33,337			20,446			23,542
Total	$	272,092		$	408,672		$	444,006

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

	2012		2011		2010
United States	$	342,685	$	394,601	$	423,883
Canada	19,339		23,448		24,804
Mexico	1,802		2,255		2,414
Other	863		958		1,071
Total	$	364,689	$	421,262	$	452,172

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

	2012		2011		2010
United States	$	95,709	$	108,680	$	142,713
Canada	5,614		6,645		9,826
Mexico	4,193		3,839		4,378
Total	$	105,516	$	119,164	$	156,917