Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

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 maker.  The Company has three reportable segments, which the Company operates and manages as strategic business units organized by lines of business: (1) Wireless, (2) Cable, and (3) Wireline.   A fourth segment, Other, primarily includes Shenandoah Telecommunications Company, the parent holding company.

The Wireless segment had provided 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. With the recent acquisition of nTelos (see Note 2), the Company's wireless service has expanded to include south-central and western Virginia, West Virginia, and small portions of Kentucky and Ohio. 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 Cable segment provides video, internet and voice services in Virginia, West Virginia and Maryland, and leases fiber optic facilities throughout southern Virginia and West Virginia. It does not include video, internet and voice services provided to customers in Shenandoah County, Virginia.

The Wireline segment provides regulated and unregulated voice services, DSL internet access, and long distance access services throughout Shenandoah County and portions of Rockingham, Frederick, Warren and Augusta counties, Virginia. The segment also provides video and cable modem services in portions of Shenandoah County, and leases fiber optic facilities throughout the northern Shenandoah Valley of Virginia, northern Virginia and adjacent areas along the Interstate 81 corridor through West Virginia, Maryland and portions of central and southern Pennsylvania.

Three months ended September 30, 2016

(in thousands)

	Wireless			Cable		Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	111,001		$	24,948	$	4,948	$	—		$	—		$	140,897
Other	7,978			2,031		5,930		—			—			15,939
Total external revenues	118,979			26,979		10,878		—			—			156,836
Internal revenues	1,140			587		7,854		—			(9,581		)	—
Total operating revenues	120,119			27,566		18,732		—			(9,581		)	156,836
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below	43,097			14,654		9,442		—			(8,876		)	58,317
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	29,892			4,770		1,676		4,736			(705		)	40,369
Integration and acquisition expenses	14,499			—		—		773			—			15,272
Depreciation and amortization	38,038			5,860		2,822		87			—			46,807
Total operating expenses	125,526			25,284		13,940		5,596			(9,581		)	160,765
Operating income (loss)	$	(5,407	)	$	2,282	$	4,792	$	(5,596	)	$	—		$	(3,929	)

Three months ended September 30, 2015

 (in thousands)

	Wireless		Cable			Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	47,793	$	22,284		$	4,904	$	—		$	—		$	74,981
Other	2,734		1,882			5,615		—						10,231
Total external revenues	50,527		24,166			10,519		—			—			85,212
Internal revenues	1,109		251			6,759					(8,119		)	—
Total operating revenues	51,636		24,417			17,278		—			(8,119		)	85,212
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below	15,572		14,124			8,212		—			(7,338		)	30,570
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	9,027		4,948			1,688		3,424			(781		)	18,306
Integration and acquisition expenses	—		—			—		2,129			—			2,129
Depreciation and amortization	9,644		5,948			3,404		122			—			19,118
Total operating expenses	34,243		25,020			13,304		5,675			(8,119		)	70,123
Operating income (loss)	$	17,393	$	(603	)	$	3,974	$	(5,675	)	$	—		$	15,089

Nine months ended September 30, 2016

 (in thousands)

	Wireless		Cable		Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	250,053	$	73,455	$	14,727	$	—		$	—		$	338,235
Other	17,461		5,799		18,221		—			—			41,481
Total external revenues	267,514		79,254		32,948		—			—			379,716
Internal revenues	3,417		1,159		22,754					(27,330		)	—
Total operating revenues	270,931		80,413		55,702		—			(27,330		)	379,716
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below	94,892		43,864		26,892		—			(25,294		)	140,354
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	65,219		14,672		4,951		13,457			(2,036		)	96,263
Integration and acquisition expenses	19,889		—		—		15,912			—			35,801
Depreciation and amortization	70,026		17,834		8,789		312			—			96,961
Total operating expenses	250,026		76,370		40,632		29,681			(27,330		)	369,379
Operating income (loss)	$	20,905	$	4,043	$	15,070	$	(29,681	)	$	—		$	10,337

Nine months ended September 30, 2015

 (in thousands)

	Wireless		Cable			Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	144,917	$	65,802		$	14,543	$	—		$	—		$	225,262
Other	8,611		5,495			15,834		—			—			29,940
Total external revenues	153,528		71,297			30,377		—			—			255,202
Internal revenues	3,319		585			18,950					(22,854		)	—
Total operating revenues	156,847		71,882			49,327		—			(22,854		)	255,202
Operating expenses
Costs of goods and services, exclusive of depreciation and amortization shown separately below	47,661		41,378			23,224		—			(20,722		)	91,541
Selling, general and administrative, exclusive of depreciation and amortization shown separately below	26,996		14,924			4,923		10,313			(2,132		)	55,024
Integration and acquisition expenses	—		—			—		3,153			—			3,153
Depreciation and amortization	26,089		17,286			9,411		333			—			53,119
Total operating expenses	100,746		73,588			37,558		13,799			(22,854		)	202,837
Operating income (loss)	$	56,101	$	(1,706	)	$	11,769	$	(13,799	)	$	—		$	52,365

A reconciliation of the total of the reportable segments’ operating income (loss) to consolidated income (loss) before taxes is as follows:

	Three Months Ended September 30,
(in thousands)	2016			2015
Total consolidated operating income (loss)	$	(3,929	)	$	15,089
Interest expense	(8,845		)	(1,808		)
Non-operating income, net	1,527			180
Income (loss) before income taxes	$	(11,247	)	$	13,461

	Nine Months Ended September 30,
	2016			2015
Total consolidated operating income (loss)	$	10,337		$	52,365
Interest expense	(16,369		)	(5,663		)
Non-operating income, net	3,147			1,253
Income (loss) before income taxes	$	(2,885	)	$	47,955

The Company’s assets by segment are as follows:

(in thousands)	September 30, 2016			December 31, 2015
Wireless	$	1,106,023		$	205,718
Cable	213,664			209,132
Wireline	109,647			105,369
Other	1,052,205			463,390
Combined totals	2,481,539			983,609
Inter-segment eliminations	(1,047,914		)	(356,458		)
Consolidated totals	$	1,433,625		$	627,151