Segment Reporting

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 ("CODM"). The Company's reportable segments, which the Company operates and manages as strategic business units that are organized according to major product and service offerings include: Wireless, Cable, Wireline and Other. A general description of the products and services offered and the customers served by each of these segments is as follows:

•

Wireless provides digital wireless service as a Sprint PCS Affiliate to a portion of a multi-state area covering large portions of central and western Virginia, south-central Pennsylvania, West Virginia, and portions of Maryland, North Carolina, Kentucky, Tennessee and Ohio. In these areas, we are the exclusive provider of Sprint-branded wireless mobility communications network products and services on the 800 MHz, 1900 MHz and 2.5 GHz spectrum bands. Wireless also owns 192 cell site towers built on leased and owned land, and leases space on these towers to both affiliates and non-affiliated third party wireless service providers.


•	Cable provides video, internet and voice services in franchise areas in portions of Virginia, West Virginia and western Maryland, and leases fiber optic facilities throughout its service area. It does not include video, internet and voice services provided to customers in Shenandoah County, Virginia.

•

Wireline 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 internet access 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.


•	Additionally, our Other operations are represented by Shenandoah Telecommunications Company, the parent holding company, that provides investing and management services to its subsidiaries.

Year ended December 31, 2017:



(in thousands)	Wireless		Cable		Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	431,184	$	107,338	$	20,388	—			—			$	558,910
Other revenues	18,945		8,579		25,557		—			—			53,081
Total external revenues	450,129		115,917		45,945		—			—			611,991
Internal revenues	4,949		3,245		33,308		—			(41,502		)	—
Total operating revenues	455,078		119,162		79,253		—			(41,502		)	611,991

Operating expenses
Costs of goods and services	152,279		59,349		38,536		39			(38,696		)	211,507
Selling, general and administrative	118,257		19,999		6,923		23,564			(2,806		)	165,937
Integration and acquisition expenses	10,793		—		—		237			—			11,030
Depreciation and amortization	139,610		23,968		12,829		600			—			177,007
Total operating expenses	420,939		103,316		58,288		24,440			(41,502		)	565,481
Operating income (loss)	$	34,139	$	15,846	$	20,965	$	(24,440	)	$	—		$	46,510

Capital Expenditures	$	82,620	$	34,487	$	22,581	$	6,801		$	—		$	146,489

Year ended December 31, 2016:



(in thousands)	Wireless		Cable		Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	359,769	$	99,070	$	19,646	—			—			$	478,485
Other revenues	24,364		7,927		24,512		—			—			56,803
Total external revenues	384,133		106,997		44,158		—			—			535,288
Internal revenues	4,620		1,737		30,816		—			(37,173		)	—
Total operating revenues	388,753		108,734		74,974		—			(37,173		)	535,288

Operating expenses
Costs of goods and services	133,113		58,581		36,259		—			(34,433		)	193,520
Selling, general and administrative	95,851		19,248		6,474		14,492			(2,740		)	133,325
Integration and acquisition expenses	25,927		—		—		16,305			—			42,232
Depreciation and amortization	107,621		23,908		11,717		439			—			143,685
Total operating expenses	362,512		101,737		54,450		31,236			(37,173		)	512,762
Operating income (loss)	$	26,241	$	6,997	$	20,524	$	(31,236	)	$	—		$	22,526

Capital Expenditures	$	123,400	$	32,400	$	20,200	$	(2,769	)	$	—		$	173,231

Year ended December 31, 2015:



(in thousands)	Wireless		Cable		Wireline		Other			Eliminations			Consolidated Totals
External revenues
Service revenues	$	192,752	$	88,980	$	19,386	—			—			$	301,118
Other revenues	11,609		7,793		21,965		—			—			41,367
Total external revenues	204,361		96,773		41,351		—			—			342,485
Internal revenues	4,440		849		26,069		—			(31,358		)	—
Total operating revenues	208,801		97,622		67,420		—			(31,358		)	342,485

Operating expenses
Costs of goods and services	63,570		54,611		31,668		—			(28,519		)	121,330
Selling, general and administrative	35,792		19,412		6,612		13,844			(2,839		)	72,821
Integration and acquisition expenses	—		—		—		3,546			—			3,546
Depreciation and amortization	34,416		23,097		12,736		453			—			70,702
Total operating expenses	133,778		97,120		51,016		17,843			(31,358		)	268,399
Operating income (loss)	$	75,023	$	502	$	16,404	$	(17,843	)	$	—		$	74,086

Capital Expenditures	$	25,200	$	20,400	$	22,100	$	1,979		$	—		$	69,679

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



	Years Ended December 31,
(in thousands)	2017			2016			2015
Total consolidated operating income (loss)	$	46,510		$	22,526		$	74,086
Interest expense	(38,237		)	(25,102		)	(7,355		)
Non-operating income, net	4,984			4,521			1,859
Income (loss) before income taxes	$	13,257		$	1,945		$	68,590

The Company’s CODM does not currently review total assets by segment since the assets are centrally managed and some of the assets are shared by the segments.