15.

SEGMENT INFORMATION:

The Company has four reportable segments: (i) radio broadcasting; (ii) Reach Media; (iii) digital; and (iv) cable television. These segments operate in the United States and are consistently aligned with the Company’s management of its businesses and its financial reporting structure. Effective January 1, 2017, the Company changed its reportable segment disclosures. Along with the results of Interactive One, all digital components from our reportable segments are a part of a newly formed reportable segment called “Digital”. This new reportable segment better reflects the manner in which we manage our business and better reflects our operational structure. Prior period amounts have been reclassified to conform to the current period presentation. These reclassifications occurred among all segments.

The radio broadcasting segment consists of all broadcast results of operations. The Reach Media segment consists of the results of operations for the Tom Joyner Morning Show and related activities and operations of other syndicated shows. The digital segment includes the results of our online business, including the operations of Interactive One, as well as the digital components of our other reportable segments. The cable television segment consists of TV One’s results of operations. Corporate/Eliminations represents financial activity associated with our corporate staff and offices and intercompany activity among the four segments.

Operating loss or income represents total revenues less operating expenses, depreciation and amortization, and impairment of long-lived assets. Intercompany revenue earned and expenses charged between segments are recorded at estimated fair value and eliminated in consolidation.

The accounting policies described in the summary of significant accounting policies in Note 1 – Organization and Summary of Significant Accounting Policies are applied consistently across the segments.

Detailed segment data for the years ended December 31, 2017 and 2016 is presented in the following table:

	For the Years Ended December 31,
	2017		2016
	(In thousands)
			(As Reclassified)
Net Revenue:
Radio Broadcasting	$	176,716	$	186,144
Reach Media		45,529		52,310
Digital		30,754		26,231
Cable Television		187,480		191,806
Corporate/Eliminations*		(438)		(272)
Consolidated	$	440,041	$	456,219

Operating Expenses (including stock-based compensation and excluding depreciation and amortization and impairment of long-lived assets):
Radio Broadcasting	$	111,813	$	110,111
Reach Media		41,251		43,314
Digital		32,254		26,576
Cable Television		104,802		115,912
Corporate/Eliminations		34,038		36,628
Consolidated	$	324,158	$	332,541

Depreciation and Amortization:
Radio Broadcasting	$	3,761	$	4,349
Reach Media		214		210
Digital		2,153		1,694
Cable Television		26,263		26,224
Corporate/Eliminations		1,625		1,770
Consolidated	$	34,016	$	34,247

Impairment of Long-Lived Assets:
Radio Broadcasting	$	29,148	$	1,287
Reach Media		—		—
Digital		—		—
Cable Television		—		—
Corporate/Eliminations		—		—
Consolidated	$	29,148	$	1,287

Operating income (loss):
Radio Broadcasting	$	31,994	$	70,397
Reach Media		4,064		8,786
Digital		(3,653)		(2,039)
Cable Television		56,415		49,670
Corporate/Eliminations		(36,101)		(38,670)
Consolidated	$	52,719	$	88,144

* Intercompany revenue included in net revenue above is as follows:

Radio Broadcasting	$	(438)	$	(272)

Capital expenditures by segment are as follows:
Radio Broadcasting	$	4,131	$	2,927
Reach Media		380		370
Digital		1,213		1,122
Cable Television		275		360
Corporate/Eliminations		1,675		1,246
Consolidated	$	7,674	$	6,025

	As of
	December 31, 2017		December 31, 2016
	(In thousands)
Total Assets:
Radio Broadcasting	$	751,664	$	781,450
Reach Media		39,928		37,192
Digital		28,407		17,749
Cable Television		435,031		446,880
Corporate/Eliminations		61,725		75,515
Consolidated	$	1,316,755	$	1,358,786