18. SEGMENT DATA

The Company’s management has determined that the Company operates in three reportable segments as of December 31, 2017, based upon the type of advertising medium, which segments are television broadcasting, radio broadcasting, and 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.

Television Broadcasting

The Company owns and/or operates 55 primary television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. The Company generates revenue from advertising, retransmission consent agreements and the monetization of spectrum usage rights in these markets.

Radio Broadcasting

The Company owns and operates 49 radio stations (38 FM and 11 AM) located primarily in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas.

The Company owns and operates a national sales representation division, Entravision Solutions, through which the Company sells advertisements and syndicates radio programming to more than 300 stations across the United States.

Digital Media

The Company owns and operates digital media operations, offering mobile, digital and other interactive media platforms and services on Internet-connected devices, including local websites and social media, that provide users with news information and other content.

On April 4, 2017, the Company completed the acquisition of 100% of the stock of several entities collectively doing business as Headway (“Headway”), a provider of mobile, programmatic, data and performance digital marketing solutions primarily in the United States, Mexico and other markets in Latin America. See Note 4 to the Notes to the Consolidated Financial Statements.

Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses and foreign currency (gain) loss. The Company generated 7% of its revenue outside the United States during the year ended December 31, 2017. There were no significant sources of revenue generated outside the United States during the years ended December 31, 2016 and 2015.

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
		2017			2016		2015		2017 to 2016			2016 to 2015
Net Revenue
Revenue from advertising and retransmission consent
Television	$	148,059		$	159,523	$	148,431			(7	)%		7	%
Radio		66,934			75,847		76,161			(12	)%		(0	)%
Digital		57,098			23,144		18,892			147	%		23	%
Total		272,091			258,514		243,484			5	%		6	%

Revenue from spectrum usage rights (television)		263,943			—		10,650		*			*

Consolidated		536,034			258,514		254,134			107	%		2	%

Cost of revenue - television (spectrum usage rights)		12,340			—		—		*			*
Cost of revenue - digital media		32,206			9,536		7,242			238	%		32	%

Direct operating expenses
Television		59,454			62,020		60,125			(4	)%		3	%
Radio		44,572			44,949		43,351			(1	)%		4	%
Digital		15,257			6,470		6,847			136	%		(6	)%
Consolidated		119,283			113,439		110,323			5	%		3	%
Selling, general and administrative expenses
Television		22,276			21,591		20,541			3	%		5	%
Radio		18,743			20,441		18,619			(8	)%		10	%
Digital		8,097			4,766		3,655			70	%		30	%
Consolidated		49,116			46,798		42,815			5	%		9	%
Depreciation and amortization
Television		9,760			10,659		11,569			(8	)%		(8	)%
Radio		2,673			3,269		3,224			(18	)%		1	%
Digital		3,978			1,414		1,196			181	%		18	%
Consolidated		16,411			15,342		15,989			7	%		(4	)%
Segment operating profit (loss)
Television		308,172			65,253		66,846			372	%		(2	)%
Radio		946			7,188		10,967			(87	)%		(34	)%
Digital		(2,440	)		958		(48	)	*			*
Consolidated		306,678			73,399		77,765			318	%		(6	)%
Corporate expenses		27,937			24,543		22,520			14	%		9	%
Foreign currency (gain) loss		350			—		—		*			*
Operating income	$	278,391		$	48,856	$	55,245			470	%		(12	)%
Capital expenditures
Television	$	10,945		$	5,744	$	7,631
Radio		1,679			3,287		5,532
Digital		64			277		385
Consolidated	$	12,688		$	9,308	$	13,548

Total assets
Television	$	556,942		$	363,852	$	367,869
Radio		126,248			129,825		132,395
Digital		82,777			24,244		24,698
Consolidated	$	765,967		$	517,921	$	524,962