Segment Reporting

12 Months Ended

Dec. 31, 2019

Effective November 30, 2019, we realigned our reporting segment structure to align with how our CEO and chief operating decision maker (“CODM”) allocates resources and evaluates operating performance. These changes follow an organizational shift during 2019 from a business line to a functional structure, better delineate between our key products, and better enable peer comparisons by both our CODM and our investors.

Refer to Note 1, Nature of Operations for a description of the business activities pursued by each of our reporting segments.

The tables below reflect the results of operations of the Company’s reportable segments consistent with internal reporting used by the Company. The prior year periods have been recast to reflect the segment changes.

Year ended December 31, 2019:



(in thousands)	Wireless		Broadband		Tower		Corporate & Eliminations			Consolidated
External revenue
Postpaid	$	302,031	$	—	$	—	—			$	302,031
Prepaid	53,540		—		—		—			53,540
Tower lease	—		—		6,964		—			6,964
Cable, residential and SMB	—		134,187		—		—			134,187
Fiber, enterprise and wholesale	—		20,187		—		—			20,187
Rural local exchange carrier	—		21,074		—		—			21,074
Travel, installation, and other	20,160		6,920		—		—			27,080
Service revenue and other	375,731		182,368		6,964		—			565,063
Equipment	67,659		1,184		—		—			68,843
Total external	443,390		183,552		6,964		—			633,906
Revenue from other segments	—		10,392		6,020		(16,412		)	—
Total revenue	443,390		193,944		12,984		(16,412		)	633,906
Operating expenses
Cost of services	131,745		76,674		3,894		(13,560		)	198,753
Cost of goods sold	65,148		766		—		—			65,914
Selling, general and administrative	42,225		32,679		1,166		36,470			112,540
Depreciation and amortization	115,731		41,304		2,025		593			159,653
Total operating expenses	354,849		151,423		7,085		23,503			536,860
Operating income (loss)	$	88,541	$	42,521	$	5,899	$	(39,915	)	$	97,046

Capital expenditures	$	71,744	$	60,627	$	921	$	5,500		$	138,792

Year ended December 31, 2018:



(in thousands)	Wireless		Broadband		Tower		Corporate & Eliminations			Consolidated
External revenue
Postpaid	$	300,775	$	—	$	—	—			$	300,775
Prepaid	51,602		—		—		—			51,602
Tower lease	—		—		7,180		—			7,180
Cable, residential and SMB	—		124,072		—		—			124,072
Fiber, enterprise and wholesale	—		18,218		—		—			18,218
Rural local exchange carrier	—		23,485		—		—			23,485
Travel, installation, and other	30,572		6,552		—		—			37,124
Service revenue and other	382,949		172,327		7,180		—			562,456
Equipment	67,510		888		—		—			68,398
Total external	450,459		173,215		7,180		—			630,854
Revenue from other segments	—		9,905		5,016		(14,921		)	—
Total revenue	450,459		183,120		12,196		(14,921		)	630,854
Operating expenses
Cost of services	127,045		75,066		4,121		(12,210		)	194,022
Cost of goods sold	63,583		376		—		—			63,959
Selling, general and administrative	46,760		27,741		778		37,943			113,222
Depreciation and amortization	125,067		38,317		2,454		567			166,405
Total operating expenses	362,455		141,500		7,353		26,300			537,608
Operating income (loss)	$	88,004	$	41,620	$	4,843	$	(41,221	)	$	93,246

Capital expenditures	$	80,010	$	43,197	$	6,145	$	7,289		$	136,641

Year ended December 31, 2017:



(in thousands)	Wireless		Broadband		Tower		Corporate & Eliminations			Consolidated
External revenue
Postpaid	$	311,629	$	—	$	—	—			$	311,629
Prepaid	96,972		—		—		—			96,972
Tower lease	—		—		7,080		—			7,080
Cable, residential and SMB	—		114,122		—		—			114,122
Fiber, enterprise and wholesale	—		16,600		—		—			16,600
Rural local exchange carrier	—		24,052		—		—			24,052
Travel, installation, and other	24,981		6,237		—		—			31,218
Service revenue and other	433,582		161,011		7,080		—			601,673
Equipment	9,467		851		—		—			10,318
Total external	443,049		161,862		7,080		—			611,991
Revenue from other segments	—		12,119		4,949		(17,068		)	—
Total revenue	443,049		173,981		12,029		(17,068		)	611,991
Operating expenses
Cost of services	125,785		73,331		3,841		(14,236		)	188,721
Cost of goods sold	22,653		133		—		—			22,786
Selling, general and administrative	117,561		26,909		696		20,771			165,937
Integration and acquisition expenses	10,793		—		—		237			11,030
Depreciation and amortization	137,725		36,797		1,885		600			177,007
Total operating expenses	414,517		137,170		6,422		7,372			565,481
Operating income (loss)	$	28,532	$	36,811	$	5,607	$	(24,440	)	$	46,510

Capital expenditures	$	81,729	$	57,068	$	891	$	6,801		$	146,489

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



	Years Ended December 31,
(in thousands)	2019			2018			2017
Total consolidated operating income	$	97,046		$	93,246		$	46,510
Interest expense	(29,468		)	(34,847		)	(38,237		)
Other	3,461			3,713			4,984
Income before income taxes	$	71,039		$	62,112		$	13,257

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, accordingly total assets by segment are not provided.

As of January 1, 2018, the Company records stock compensation expense to Corporate. Previously, stock compensation expense was allocated among all segments.