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.