Segment Data

The Company operates in two reportable segments for which there is discrete financial information available and whose operating results are reviewed by the chief operating decision maker. Radio Station Group revenue is derived primarily from the sale of broadcasting time to local, regional, and national advertisers. Westwood One revenue is generated primarily through network advertising. Corporate includes overall executive, administrative and support functions for both of the Company's reportable segments, including programming, finance, legal, human resources and information technology functions.

The Company presents segment adjusted EBITDA ("Adjusted EBITDA") as this is the financial metric by which management and the chief operating decision maker allocate resources of the Company and analyze the performance of the Company’s reportable segments. Management also uses this measure to determine the contribution of the Company's core operations to the funding of its corporate resources utilized to manage operations and non-operating expenses including debt service and acquisitions. In addition, segment Adjusted EBITDA, excluding the impact of local marketing agreement fees, is a key metric for purposes of calculating and determining compliance with certain covenants contained in the Company's Credit Agreement.

The Company excludes from Adjusted EBITDA items not related to core operations and those that are non-cash including: depreciation, amortization, stock-based compensation expense, gain or loss on the exchange or sale of any assets or stations, early extinguishment of debt, local marketing agreement fees, expenses relating to acquisitions and restructuring costs and non-cash impairments of assets.

Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss), operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with GAAP. In addition, Adjusted EBITDA may be defined or calculated differently by other companies, and comparability may be limited.

The Company’s financial data by segment is presented in the tables below:



	Three Months Ended September 30, 2017
	Radio Station Group		Westwood One		Corporate and Other		Consolidated
Net revenue	$	202,852	$	83,778	$	610	$	287,240



	Three Months Ended September 30, 2016
	Radio Station Group		Westwood One		Corporate and Other		Consolidated
Net revenue	$	206,199	$	79,413	$	524	$	286,136



	Nine Months Ended September 30, 2017
	Radio Station Group		Westwood One		Corporate and Other		Consolidated
Net revenue	$	585,050	$	254,867	$	1,884	$	841,801



	Nine Months Ended September 30, 2016
	Radio Station Group		Westwood One		Corporate and Other		Consolidated
Net revenue	$	592,640	$	247,507	$	1,712	$	841,859



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Adjusted EBITDA by segment
Radio Station Group	$	54,660		$	56,237		$	153,571		$	159,278
Westwood One	17,082			(2,689		)	42,993			17,998
Segment Adjusted EBITDA	71,742			53,548			196,564			177,276
Adjustments
Corporate and other expense	(9,977		)	(9,664		)	(28,665		)	(28,278		)
Income tax expense	(5,257		)	(32,788		)	(6,465		)	(24,904		)
Non-operating expense, including net interest expense	(35,336		)	(33,908		)	(103,700		)	(101,934		)
Local marketing agreement fees	(2,717		)	(2,481		)	(8,137		)	(10,351		)
Depreciation and amortization	(15,208		)	(21,957		)	(47,610		)	(68,023		)
Stock-based compensation expense	(354		)	(735		)	(1,422		)	(2,403		)
Gain on sale of assets or stations	83			94,014			2,585			97,155
Impairment of intangible assets	—			—			—			(1,816		)
Loss on early extinguishment of debt	(1,063		)	—			(1,063		)	—
Acquisition-related and restructuring costs	(499		)	450			(2,116		)	(3,237		)
Franchise and state taxes	(140		)	(158		)	(420		)	(527		)
Consolidated net income	$	1,274		$	46,321		$	(449	)	$	32,958