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Segment Reporting | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Segment Reporting | 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, 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 208 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, broadband 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, broadband and voice services provided to customers in Shenandoah County, Virginia.
• | Wireline provides regulated and unregulated voice services, internet broadband, long distance access services, and leases fiber optic facilities throughout portions of Virginia, West Virginia, Maryland and Pennsylvania.
• | 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, 2018:
(in thousands) | Wireless |  | Cable |  | Wireline |  | Other |  | Eliminations |  | Consolidated
External revenue |  |  |  |  |  |  |  |  |  |  |
Service revenue | $ | 380,818 |  |  | $ | 114,917 |  |  | $ | 21,521 |  |  | — |  |  | — |  |  | $ | 517,256 |
Equipment revenue | 67,510 |  |  | 695 |  |  | 193 |  |  | — |  |  | — |  |  | 68,398 |
Other | 9,311 |  |  | 8,585 |  |  | 27,304 |  |  | — |  |  | — |  |  | 45,200 |
Total external revenue | 457,639 |  |  | 124,197 |  |  | 49,018 |  |  | — |  |  | — |  |  | 630,854 |
Internal revenue | 5,016 |  |  | 4,706 |  |  | 28,124 |  |  | — |  |  | (37,846 | ) |  | — |
Total operating revenue | 462,655 |  |  | 128,903 |  |  | 77,142 |  |  | — |  |  | (37,846 | ) |  | 630,854 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |
Cost of services | 131,166 |  |  | 59,935 |  |  | 38,056 |  |  | — |  |  | (35,135 | ) |  | 194,022 |
Cost of goods sold | 63,583 |  |  | 295 |  |  | 81 |  |  | — |  |  | — |  |  | 63,959 |
Selling, general and administrative | 47,538 |  |  | 20,274 |  |  | 7,467 |  |  | 40,654 |  |  | (2,711 | ) |  | 113,222 |
Depreciation and amortization | 127,521 |  |  | 24,644 |  |  | 13,673 |  |  | 567 |  |  | — |  |  | 166,405 |
Total operating expenses | 369,808 |  |  | 105,148 |  |  | 59,277 |  |  | 41,221 |  |  | (37,846 | ) |  | 537,608 |
Operating income (loss) | $ | 92,847 |  |  | $ | 23,755 |  |  | $ | 17,865 |  |  | $ | (41,221 | ) |  | $ | — |  |  | $ | 93,246 |
Capital Expenditures | $ | 86,146 |  |  | $ | 26,640 |  |  | $ | 16,566 |  |  | $ | 7,289 |  |  | $ | — |  |  | $ | 136,641 |
Year ended December 31, 2017:
(in thousands) | Wireless |  | Cable |  | Wireline |  | Other |  | Eliminations |  | Consolidated
External revenue |  |  |  |  |  |  |  |  |  |  |
Service revenue | $ | 431,184 |  |  | $ | 107,338 |  |  | $ | 20,388 |  |  | — |  |  | — |  |  | $ | 558,910 |
Equipment revenue | 9,467 |  |  | 724 |  |  | 127 |  |  | — |  |  | — |  |  | 10,318 |
Other | 9,478 |  |  | 7,855 |  |  | 25,430 |  |  | — |  |  | — |  |  | 42,763 |
Total external revenue | 450,129 |  |  | 115,917 |  |  | 45,945 |  |  | — |  |  | — |  |  | 611,991 |
Internal revenue | 4,949 |  |  | 3,245 |  |  | 33,308 |  |  | — |  |  | (41,502 | ) |  | — |
Total operating revenue | 455,078 |  |  | 119,162 |  |  | 79,253 |  |  | — |  |  | (41,502 | ) |  | 611,991 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |
Cost of services | 129,626 |  |  | 59,335 |  |  | 38,417 |  |  | 39 |  |  | (38,696 | ) |  | 188,721 |
Cost of goods sold | 22,653 |  |  | 14 |  |  | 119 |  |  | — |  |  | — |  |  | 22,786 |
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
External revenue |  |  |  |  |  |  |  |  |  |  |
Service revenue | $ | 359,769 |  |  | $ | 99,070 |  |  | $ | 19,646 |  |  | — |  |  | — |  |  | $ | 478,485 |
Equipment revenue | 10,674 |  |  | 736 |  |  | 130 |  |  | — |  |  | — |  |  | 11,540 |
Other | 13,690 |  |  | 7,191 |  |  | 24,382 |  |  | — |  |  | — |  |  | 45,263 |
Total external revenue | 384,133 |  |  | 106,997 |  |  | 44,158 |  |  | — |  |  | — |  |  | 535,288 |
Internal revenue | 4,620 |  |  | 1,737 |  |  | 30,816 |  |  | — |  |  | (37,173 | ) |  | — |
Total operating revenue | 388,753 |  |  | 108,734 |  |  | 74,974 |  |  | — |  |  | (37,173 | ) |  | 535,288 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |
Cost of services | 103,840 |  |  | 58,290 |  |  | 36,272 |  |  | — |  |  | (34,433 | ) |  | 163,969 |
Cost of goods sold | 29,273 |  |  | 291 |  |  | (13 | ) |  | — |  |  | — |  |  | 29,551 |
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 |
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) | 2018 |  | 2017 |  | 2016
Total consolidated operating income (loss) | $ | 93,246 |  |  | $ | 46,510 |  |  | $ | 22,526 |
Interest expense | (34,847 | ) |  | (38,237 | ) |  | (25,102 | )
Gain (loss) on investments, net | (275 | ) |  | 564 |  |  | 271 |
Non-operating income (loss), net | 3,988 |  |  | 4,420 |  |  | 4,250 |
Income (loss) before income taxes | $ | 62,112 |  |  | $ | 13,257 |  |  | $ | 1,945 |
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. As of January 1, 2018, the Company records stock compensation expense to Other. Previously recorded stock compensation expense was allocated among all segments.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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