17. SEGMENT DATA

The Company’s management has determined that the Company operates in three reportable segments as of December 31, 2016, based upon the type of advertising medium, which segments are television broadcasting, radio broadcasting, and digital media. Through June 30, 2014, the Company operated in two reportable segments, television broadcasting and radio broadcasting. On June 18, 2014, the Company acquired Pulpo, a leading provider of digital advertising services and solutions focused on reaching Hispanic audiences in the U.S. and Mexico. Beginning with the third quarter of 2014, the Company created a new operating segment, digital media. The Company’s segments results reflect information presented on the same basis that is used for internal management reporting and it is also how the chief operating decision maker evaluates the business. The Company believes that this information regarding the digital media segment is useful to readers of its financial statements. The results of this segment for the interim period between the acquisition date and the beginning of the third quarter of 2014 were not considered significant for reclassification. Additionally, the digital media segment was not significant to the Company’s operations prior to the acquisition of Pulpo (as discussed in Note 3), and therefore the segment information for periods prior to the third quarter of 2014 has not been restated.

Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses and impairment charge. There were no significant sources of revenue generated outside the United States during the years ended December 31, 2016, 2015 and 2014. There was approximately $8.7 million and $8.8 million of assets in Mexico at December 31, 2016 and 2015, respectively.

Included in the television segment net revenue for the year ended December 31, 2015, is approximately $10.5 million of revenue associated with television station channel modifications made by the Company in order to accommodate the operations of a telecommunications operator.

The accounting policies applied to determine the segment information are generally the same as those described in the summary of significant accounting policies (see Note 2). The Company evaluates the performance of its operating segments based on separate financial data for each operating segment as provided below (in thousands):

	Years Ended December 31,								% Change			% Change
		2016		2015			2014		2016 to 2015			2015 to 2014
Net Revenue
Television	$	159,523	$	159,081		$	165,472			0	%		(4	)%
Radio		75,847		76,161			69,922			(0	)%		9	%
Digital		23,144		18,892			6,644			23	%		184	%
Consolidated		258,514		254,134			242,038			2	%		5	%

Cost of revenue - digital media		9,536		7,242			2,993			32	%		142	%

Direct operating expenses
Television		62,020		60,125			61,162			3	%		(2	)%
Radio		44,949		43,351			41,349			4	%		5	%
Digital		6,470		6,847			2,363			(6	)%		190	%
Consolidated		113,439		110,323			104,874			3	%		5	%
Selling, general and administrative expenses
Television		21,591		20,541			19,685			5	%		4	%
Radio		20,441		18,619			16,773			10	%		11	%
Digital		4,766		3,655			1,348			30	%		171	%
Consolidated		46,798		42,815			37,806			9	%		13	%
Depreciation and amortization
Television		10,659		11,569			10,680			(8	)%		8	%
Radio		3,269		3,224			3,391			1	%		(5	)%
Digital		1,414		1,196			592			18	%		102	%
Consolidated		15,342		15,989			14,663			(4	)%		9	%
Segment operating profit (loss)
Television		65,253		66,846			73,945			(2	)%		(10	)%
Radio		7,188		10,967			8,409			(34	)%		30	%
Digital		958		(48	)		(652	)	*				(93	)%
Consolidated		73,399		77,765			81,702			(6	)%		(5	)%
Corporate expenses		24,543		22,520			21,301			9	%		6	%
Impairment charge		-		-			735		*			*
Operating income	$	48,856	$	55,245		$	59,666			(12	)%		(7	)%
Capital expenditures
Television	$	5,744	$	7,631		$	6,084
Radio		3,287		5,532			2,995
Digital		277		385			32
Consolidated	$	9,308	$	13,548		$	9,111
Total assets
Television	$	363,852	$	367,869		$	380,775
Radio		129,825		132,395			124,050
Digital		24,244		24,698			22,942
Consolidated	$	517,921	$	524,962		$	527,767