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 provides digital wireless service as a PCS affiliate to a portion of a four -state area covering the region from Harrisburg, York and Altoona, Pennsylvania, along Interstate 81 to Harrisonburg, Virginia, south-central and western Virginia, West Virginia, and small portions of North Carolina, Kentucky, Maryland and Ohio. The Wireless 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, 2017 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 107,395 $ 26,934 $ 5,126 $ — $ — $ 139,455 Other 3,871 2,156 6,300 — — 12,327 Total external revenues 111,266 29,090 11,426 — — 151,782 Internal revenues 1,239 999 8,425 — (10,663 ) — Total operating revenues 112,505 30,089 19,851 — (10,663 ) 151,782 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 41,041 14,913 9,807 — (9,927 ) 55,834 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 30,099 5,358 1,706 5,772 (736 ) 42,199 Integration and acquisition expenses 1,691 — — 15 — 1,706 Depreciation and amortization 32,929 6,192 3,249 198 — 42,568 Total operating expenses 105,760 26,463 14,762 5,985 (10,663 ) 142,307 Operating income (loss) $ 6,745 $ 3,626 $ 5,089 $ (5,985 ) $ — $ 9,475 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 ) Nine Months Ended September 30, 2017 (in thousands) Wireless Cable Wireline Other Eliminations Consolidated Totals External revenues Service revenues $ 323,262 $ 80,229 $ 15,301 $ — $ — $ 418,792 Other 15,133 6,283 18,712 — — 40,128 Total external revenues 338,395 86,512 34,013 — — 458,920 Internal revenues 3,707 2,153 24,568 (30,428 ) — Total operating revenues 342,102 88,665 58,581 — (30,428 ) 458,920 Operating expenses Costs of goods and services, exclusive of depreciation and amortization shown separately below 117,829 45,052 28,409 — (28,314 ) 162,976 Selling, general and administrative, exclusive of depreciation and amortization shown separately below 88,201 15,083 5,065 19,139 (2,114 ) 125,374 Integration and acquisition expenses 9,607 — — 266 — 9,873 Depreciation and amortization 104,231 18,070 9,536 460 — 132,297 Total operating expenses 319,868 78,205 43,010 19,865 (30,428 ) 430,520 Operating income (loss) $ 22,234 $ 10,460 $ 15,571 $ (19,865 ) $ — $ 28,400 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 A reconciliation of the total of the reportable segments’ operating income (loss) to consolidated income (loss) before taxes is as follows: Three Months Ended Nine Months Ended (in thousands) 2017 2016 2017 2016 Total consolidated operating income (loss) $ 9,475 $ (3,929 ) $ 28,400 $ 10,337 Interest expense (9,823 ) (8,845 ) (28,312 ) (16,369 ) Non-operating income, net 1,205 1,527 3,877 3,147 Income (loss) before income taxes $ 857 $ (11,247 ) $ 3,965 $ (2,885 ) |