SEGMENT DATA

9 Months Ended

Sep. 30, 2019

The Company’s primary business is included in its Audio segment. Revenue and expenses earned and charged between Audio, Corporate and the Company's Audio & Media Services businesses are eliminated in consolidation. The Audio segment provides media and entertainment services via broadcast and digital delivery and also includes the Company’s events and national syndication businesses. The Audio & Media Services business provides other audio and media services, including the Company’s media representation business (Katz Media) and its provider of scheduling and broadcast software (RCS). Corporate includes infrastructure and support, including executive, information technology, human resources, legal, finance and administrative functions for the Company’s businesses. Share-based payments are recorded in corporate expense.

In connection with the Separation and the Reorganization, the Company revised its segment reporting, as discussed in Note 1 and all prior periods have been restated to conform with this presentation.

The following table presents the Company's segment results for the Successor Company for the three months ended September 30, 2019 and the period from May 2, 2019 through September 30, 2019:



Successor Company
(In thousands)	Audio		Audio & Media Services		Corporate and other reconciling items			Eliminations			Consolidated
Three Months Ended September 30, 2019
Revenue	$	890,364	$	59,873	$	—		$	(1,899	)	$	948,338
Direct operating expenses	283,984		7,281		—			(294		)	290,971
Selling, general and administrative expenses	310,337		32,609		—			(1,593		)	341,353
Corporate expenses	—		—		70,056			(12		)	70,044
Depreciation and amortization	87,442		5,971		1,855			—			95,268
Other operating expense, net	—		—		(9,880		)	—			(9,880		)
Operating income (loss)	$	208,601	$	14,012	$	(81,791	)	$	—		$	140,822
Intersegment revenues	$	168	$	1,731	$	—		$	—		$	1,899
Capital expenditures	$	23,705	$	1,994	$	3,171		$	—		$	28,870
Share-based compensation expense	$	—	$	—	$	17,112		$	—		$	17,112

Period from May 2, 2019 through September 30, 2019
Revenue	$	1,486,594	$	100,410	$	—		$	(3,020	)	$	1,583,984
Direct operating expenses	463,455		12,153		—			(346		)	475,262
Selling, general and administrative expenses	516,343		54,804		—			(2,654		)	568,493
Corporate expenses	—		—		104,454			(20		)	104,434
Depreciation and amortization	142,019		9,590		3,042			—			154,651
Other operating expense, net	—		—		(6,634		)	—			(6,634		)
Operating income (loss)	$	364,777	$	23,863	$	(114,130	)	$	—		$	274,510

Intersegment revenues	$	280	$	2,740	$	—		$	—		$	3,020
Capital expenditures	$	37,259	$	2,824	$	6,222		$	—		$	46,305
Share-based compensation expense	$	—	$	—	$	20,151		$	—		$	20,151



Predecessor Company
(In thousands)	Audio		Audio and Media Services		Corporate and other reconciling items			Eliminations			Consolidated
Three Months Ended September 30, 2018
Revenue	$	852,280	$	69,823	$	—		$	(1,611	)	$	920,492
Direct operating expenses	261,645		7,052		—			(91		)	268,606
Selling, general and administrative expenses	297,851		33,105		—			(1,520		)	329,436
Corporate expenses	—		—		56,699			—			56,699
Depreciation and amortization	33,754		4,350		5,191			—			43,295
Impairment charges	—		—		33,150			—			33,150
Other operating expense, net	—		—		(2,462		)	—			(2,462		)
Operating income (loss)	$	259,030	$	25,316	$	(97,502	)	$	—		$	186,844
Intersegment revenues	$	—	$	1,611	$	—		$	—		$	1,611
Capital expenditures	$	16,951	$	1,695	$	1,496		$	—		$	20,142
Share-based compensation expense	$	—	$	—	$	456		$	—		$	456

Period from January 1, 2019 through May 1, 2019
Revenue	$	1,006,677	$	69,362	$	—		$	(2,568	)	$	1,073,471
Direct operating expenses	350,501		9,559		—			(364		)	359,696
Selling, general and administrative expenses	396,032		42,497		—			(2,184		)	436,345
Corporate expenses					66,040			(20		)	66,020
Depreciation and amortization	40,982		5,266		6,586			—			52,834
Impairment charges	—		—		91,382			—			91,382
Other operating expense, net	—		—		(154		)	—			(154		)
Operating income (loss)	$	219,162	$	12,040	$	(164,162	)	$	—		$	67,040
Intersegment revenues	$	243	$	2,325	$	—		$	—		$	2,568
Capital expenditures	$	31,177	$	1,263	$	3,757		$	—		$	36,197
Share-based compensation expense	$	—	$	—	$	498		$	—		$	498

Nine Months Ended September 30, 2018
Revenue	$	2,409,330	$	180,582	$	—		$	(4,884	)	$	2,585,028
Direct operating expenses	752,447		21,160		—			(183		)	773,424
Selling, general and administrative expenses	912,412		96,003		—			(4,687		)	1,003,728
Corporate expenses	—		—		162,089			(14		)	162,075
Depreciation and amortization	146,048		13,908		15,590			—			175,546
Impairment charges	—		—		33,150			—			33,150
Other operating expense, net	—		—		(6,912		)	—			(6,912		)
Operating income (loss)	$	598,423	$	49,511	$	(217,741	)	$	—		$	430,193
Intersegment revenues	$	—	$	4,884	$	—		$	—		$	4,884
Capital expenditures	$	40,836	$	2,458	$	4,154		$	—		$	47,448
Share-based compensation expense	$	—	$	—	$	1,628		$	—		$	1,628