Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [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 include 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 September 30, 2011 (In thousands)	Wireless		Wireline		Cable TV			Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	34,403	$	3,604	$	14,532		$	-		$	-		$	52,539
Other		3,286		4,829		2,003			-			-			10,118
Total external revenues		37,689		8,433		16,535			-			-			62,657
Internal revenues		800		3,994		83			-			(4,877	)		-
Total operating revenues		38,489		12,427		16,618			-			(4,877	)		62,657
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		12,667		4,887		12,082			36			(4,158	)		25,514
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		7,028		1,891		5,271			728			(719	)		14,199
Depreciation and amortization		5,868		2,156		5,692			58			-			13,774
Total operating expenses		25,563		8,934		23,045			822			(4,877	)		53,487
Operating income (loss)		12,926		3,493		(6,427	)		(822	)		-			9,170

Three months ended September 30, 2010 (In thousands)	Wireless		Wireline		Cable TV			Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	28,624	$	3,596	$	10,663		$	-		$	-		$	42,883
Other		4,341		4,715		1,294			-			-			10,350
Total external revenues		32,965		8,311		11,957			-			-			53,233
Internal revenues		763		3,375		14			-			(4,152	)		-
Total operating revenues		33,728		11,686		11,971			-			(4,152	)		53,233
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		12,236		4,318		8,318			56			(3,663	)		21,265
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		5,886		1,828		6,200			755			(489	)		14,180
Depreciation and amortization		6,401		2,000		3,746			55			-			12,202
Total operating expenses		24,523		8,146		18,264			866			(4,152	)		47,647
Gain on sale of directory		-		4,000		-			-			-			4,000
Operating income (loss)		9,205		7,540		(6,293	)		(866	)		-			9,586

Nine months ended September 30, 2011 (In thousands)	Wireless		Wireline		Cable TV			Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	100,413	$	10,850	$	43,594		$	-		$	-		$	154,857
Other		9,687		13,906		6,190			-			-			29,783
Total external revenues		110,100		24,756		49,784			-			-			184,640
Internal revenues		2,391		12,021		199			-			(14,611	)		-
Total operating revenues		112,491		36,777		49,983			-			(14,611	)		184,640
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		39,671		14,238		35,441			100			(12,658	)		76,792
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		21,225		5,558		14,134			2,474			(1,953	)		41,438
Depreciation and amortization		18,242		6,260		17,478			175			-			42,155
Total operating expenses		79,138		26,056		67,053			2,749			(14,611	)		160,385
Operating income (loss)		33,353		10,721		(17,070	)		(2,749	)		-			24,255

Nine months ended September 30, 2010 (In thousands)	Wireless		Wireline		Cable TV			Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	81,415	$	10,595	$	17,955		$	-		$	-		$	109,965
Other		10,309		14,852		2,066			-			-			27,227
Total external revenues		91,724		25,447		20,021			-			-			137,192
Internal revenues		2,268		10,076		37			-			(12,381	)		-
Total operating revenues		93,992		35,523		20,058			-			(12,381	)		137,192
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below		32,108		13,075		16,152			188			(10,922	)		50,601
Selling, general and administrative, exclusive of depreciation and amortization shown separately below		14,808		6,994		9,957			2,470			(1,459	)		32,770
Depreciation and amortization		16,927		5,860		5,945			195			-			28,927
Total operating expenses		63,843		25,929		32,054			2,853			(12,381	)		112,298
Gain on sale of directory		-		4,000		-			-			-			4,000
Operating income (loss)		30,149		13,594		(11,996	)		(2,853	)		-			28,894

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  September 30,
	2011			2010
Total consolidated operating income	$	9,170		$	9,586
Interest expense		(2,003	)		(2,416	)
Non-operating income (expense), net		(55	)		264
Income from continuing operations before income taxes	$	7,112		$	7,434

	Nine Months Ended  September 30,
	2011			2010
Total consolidated operating income	$	24,255		$	28,894
Interest expense		(6,668	)		(2,992	)
Non-operating income (expense), net		204			390
Income from continuing operations before income taxes	$	17,791		$	26,292

The Company's assets by segment are as follows:

(In thousands)	September 30, 2011			December 31, 2010
Wireless	$	135,428		$	124,854
Wireline		82,195			78,552
Cable TV		207,087			208,039
Other (includes assets held for sale)		393,878			393,340
Combined totals		818,588			804,785
Inter-segment eliminations		(345,447	)		(338,348	)
Consolidated totals	$	473,141		$	466,437