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 (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 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, December 31, 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 |