Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

3. Discontinued Operations

On July 31, 2012, the Company completed the Townsquare Asset Exchange. The transaction is part of the Company’s ongoing efforts to focus on radio stations in larger markets and geographically strategic regional clusters. The results of operations associated with these stations were separately reported, net of the related tax impact, for all periods presented in the accompanying condensed consolidated statements of operations.

Components of Results of Discontinued Operations

For the three and nine months ended September 30, 2012 and 2011, income from discontinued operations was as follows (dollars in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Discontinued operations:
Net revenues	$	3,534		$	7,513		$	23,855		$	20,643
Operating income		1,458			3,156			8,227			8,218
Non-operating income (expense)		63,226			(1	)		63,219			(1	)
Income from discontinued operations before taxes		64,684			3,155			71,446			8,217
Income tax (expense) benefit		(35,426	)		1,427			(31,811	)		391
Income from discontinued operations	$	29,258		$	4,582		$	39,635		$	8,608

During the nine months ended September 30, 2012, the Company recognized a $7.2 million deferred tax benefit related to the release of a valuation allowance resulting from the consumption of NOL carryovers associated with the settlement of deferred tax liabilities related to intangible assets classified as indefinite lived intangibles prior to their sale in the Townsquare Asset Exchange. The deferred tax benefit is reflected in income tax expense for discontinued operations. In conjunction with Townsquare Asset Exchange, the Company recorded a gain of $63.2 million, which is included within discontinued operations in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2012.