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Segment Reporting | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting 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.

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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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