Segment Information

6 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

Segment Information

7.  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 makers.  The Company has three reportable segments, which the Company operates and manages as strategic business units organized by lines of business: (1) Wireless, (2) Wireline, and (3) Cable TV.   A fourth segment, Other, primarily includes Shenandoah Telecommunications Company, the parent holding company as well as certain general and administrative costs historically charged to Converged Services that cannot be allocated to discontinued operations.

The Wireless segment provides 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 of Sprint Nextel.  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 Wireline segment provides regulated and unregulated voice services, dial-up and DSL internet access, and long distance access services throughout Shenandoah County and portions of northwestern Augusta County, Virginia, and leases fiber optic facilities throughout the northern Shenandoah Valley of Virginia, northern Virginia and adjacent areas along the Interstate 81 corridor, including portions of West Virginia and Maryland.

The Cable TV segment provides video, internet and voice services in Virginia, West Virginia and Maryland.  It includes the operations acquired from JetBroadBand, LLC, since July 30, 2010, and the operations acquired from Suddenlink since November 30, 2010.

The financial information below includes revenues and related expenses billed by one segment of the Company to another segment within the Company.  These internal revenues and related expenses are eliminated in order to arrive at the consolidated total revenues and expenses as shown below.  All individual segment financial results includes these internal  revenues and expenses, which are only eliminated at the consolidated level. Selected financial data for each segment is as follows:

Three months ended June 30, 2011

(In thousands)

	Wireless		Wireline		Cable TV			Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	33,806	$	3,660	$	14,602		$	-		$	-		$	52,068
Other		2,927		4,407		2,153			-			-			9,487
Total external revenues		36,733		8,067		16,755			-			-			61,555
Internal revenues		801		4,199		79			-			(5,079	)		-
Total operating revenues		37,534		12,266		16,834			-			(5,079	)		61,555
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		13,391		4,817		11,435			30			(4,457	)		25,216
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		7,651		1,866		4,234			772			(622	)		13,901
Depreciation and amortization		6,140		2,155		6,088			61			-			14,444
Total operating expenses		27,182		8,838		21,757			863			(5,079	)		53,561
Operating income (loss)		10,352		3,428		(4,923	)		(863	)		-			7,994

Three months ended June 30, 2010 

(In thousands)	Wireless		Wireline		Cable TV			Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	26,264	$	3,623	$	3,679		$	-		$	-		$	33,566
Other		3,008		5,395		392			-			-			8,795
Total external revenues		29,272		9,018		4,071			-			-			42,361
Internal revenues		759		3,439		14			-			(4,212	)		-
Total operating revenues		30,031		12,457		4,085			-			(4,212	)		42,361
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		9,993		4,594		4,367			65			(3,741	)		15,278
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		4,820		3,334		2,224			903			(471	)		10,810
Depreciation and amortization		5,286		1,935		1,195			67			-			8,483
Total operating expenses		20,099		9,863		7,786			1,035			(4,212	)		34,571
Operating income (loss)		9,932		2,594		(3,701	)		(1,035	)		-			7,790

Six months ended June 30, 2011
(In thousands)	Wireless		Wireline		Cable TV			Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	66,010	$	7,245	$	29,062		$	-		$	-		$	102,317
Other		6,402		9,077		4,187			-			-			19,666
Total external revenues		72,412		16,322		33,249			-			-			121,983
Internal revenues		1,590		8,028		116			-			(9,734	)		-
Total operating revenues		74,002		24,350		33,365			-			(9,734	)		121,983
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		27,004		9,350		23,359			64			(8,500	)		51,277
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		14,197		3,667		8,863			1,746			(1,234	)		27,239
Depreciation and amortization		12,374		4,105		11,786			117			-			28,382
Total operating expenses		53,575		17,122		44,008			1,927			(9,734	)		106,898
Operating income (loss)		20,427		7,228		(10,643	)		(1,927	)		-			15,085

Six months ended June 30, 2010
(In thousands)	Wireless		Wireline		Cable TV			Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	52,791	$	7,000	$	7,292		$	-		$	-		$	67,083
Other		5,968		10,137		771			-			-			16,876
Total external revenues		58,759		17,137		8,063			-			-			83,959
Internal revenues		1,505		6,700		24			-			(8,229	)		-
Total operating revenues		60,264		23,837		8,087			-			(8,229	)		83,959
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		19,871		8,757		7,834			132			(7,258	)		29,336
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		8,923		5,166		3,757			1,715			(971	)		18,590
Depreciation and amortization		10,525		3,860		2,199			140			-			16,724
Total operating expenses		39,319		17,783		13,790			1,987			(8,229	)		64,650
Operating income (loss)		20,945		6,054		(5,703	)		(1,987	)		-			19,309

A reconciliation of the total of the reportable segments' operating income to consolidated income from continuing operations before income taxes is as follows:

	Three Months Ended  June 30,
	2011			2010
Total consolidated operating income	$	7,994		$	7,790
Interest expense		(2,846	)		(266	)
Non-operating income (expense), net		166			106
Income from continuing operations before income taxes	$	5,314		$	7,630

	Six Months Ended  June 30,
	2011			2010
Total consolidated operating income	$	15,085		$	19,309
Interest expense		(4,665	)		(576	)
Non-operating income (expense), net		259			127
Income from continuing operations before income taxes	$	10,679		$	18,860

The Company's assets by segment are as follows:

(In thousands)	June 30, 2011			December 31, 2010
Wireless	$	127,021		$	124,854
Wireline		80,944			78,552
Cable TV		209,519			208,039
Other (includes assets held for sale)		395,251			393,340
Combined totals		812,735			804,785
Inter-segment eliminations		(345,436	)		(338,348	)
Consolidated totals	$	467,299		$	466,437