| SEGMENT DATA |
NOTE 18. SEGMENT DATA
FASB ASC Topic 280, “Segment Reporting,” requires companies to provide certain information about their operating segments. We have three reportable segments: (1) Broadcast, (2) Digital Media and (3) Publishing.
Our operating segments reflect how our chief operating decision makers, which we define as a collective group of senior executives, assesses the performance of each operating segment and determines the appropriate allocations of resources to each segment. Our operating segments do not all meet the quantitative thresholds to qualify as reportable segments; however, we have elected to disclose the results of these non-reportable operating segments as we believe this information is useful to readers of our financial statements. We continue to review our operating segment classifications to align with operational changes in our business and may make future changes as necessary.
We measure and evaluate our operating segments based on operating income and operating expenses that do not include allocations of costs related to corporate functions, such as accounting and finance, human resources, legal, tax and treasury; nor do they include costs such as amortization, depreciation, taxes or interest expense. Segment performance, as defined by Salem, is not necessarily comparable to other similarly titled captions of other companies. The table below presents financial information for each operating segment as of March 31, 2016 and 2015 based on the composition of our operating segments:
| | | Broadcast | | Digital
Media | | Publishing | | Unallocated
Corporate | | Consolidated | | | | | (Dollars in thousands) | | | Three Months Ended March 31, 2016 | | | | | | | | | | | | | | | | | | Net revenue | | $ | 48,471 | | $ | 11,284 | | $ | 4,820 | | $ | | | $ | 64,575 | | | Operating expenses | | | 35,988 | | | 9,186 | | | 4,948 | | | 4,213 | | | 54,335 | | | Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and (gain) loss on disposal of assets | | $ | 12,483 | | $ | 2,098 | | $ | (128) | | $ | (4,213) | | $ | 10,240 | | | Depreciation | | | 1,848 | | | 782 | | | 150 | | | 212 | | | 2,992 | | | Amortization | | | 22 | | | 1,049 | | | 72 | | | | | | 1,143 | | | Change in the estimated fair value of contingent earn-out consideration | | | | | | (70) | | | (58) | | | | | | (128) | | | (Gain) loss on disposal of assets | | | 179 | | | (14) | | | (18) | | | 3 | | | 150 | | | Net operating income (loss) | | $ | 10,434 | | $ | 351 | | $ | (274) | | $ | (4,428) | | $ | 6,083 | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2015 | | | | | | | | | | | | | | | | | | Net revenue | | $ | 46,539 | | $ | 10,791 | | $ | 4,526 | | $ | | | $ | 61,856 | | | Operating expenses | | | 33,917 | | | 9,000 | | | 4,497 | | | 3,991 | | | 51,405 | | | Net operating income (loss) before depreciation, amortization, change in the estimated fair value of contingent earn-out consideration and (gain) loss on disposal of assets | | $ | 12,622 | | $ | 1,791 | | $ | 29 | | $ | (3,991) | | $ | 10,451 | | | Depreciation | | | 1,951 | | | 776 | | | 168 | | | 277 | | | 3,172 | | | Amortization | | | 23 | | | 1,170 | | | 136 | | | | | | 1,329 | | | Change in the estimated fair value of contingent earn-out consideration | | | | | | 33 | | | 85 | | | | | | 118 | | | (Gain) loss on disposal of assets | | | 129 | | | | | | (1) | | | 1 | | | 129 | | | Net operating income (loss) | | $ | 10,519 | | $ | (188) | | $ | (359) | | $ | (4,269) | | $ | 5,703 | |
| | | Broadcast | | Digital
Media | | Publishing | | Unallocated
Corporate | | Consolidated | | | | | (Dollars in thousands) | | | As of March 31, 2016 | | | | | | | | | | | | | | | | | | Inventories, net | | $ | | | $ | 461 | | $ | 410 | | $ | | | $ | 871 | | | Property and equipment, net | | | 88,651 | | | 7,205 | | | 1,681 | | | 7,692 | | | 105,229 | | | Broadcast licenses | | | 393,074 | | | | | | | | | | | | 393,074 | | | Goodwill | | | 3,581 | | | 20,151 | | | 1,044 | | | 8 | | | 24,784 | | | Other indefinite-lived intangible assets | | | | | | | | | 833 | | | | | | 833 | | | Amortizable intangible assets, net | | | 469 | | | 11,970 | | | 1,316 | | | 5 | | | 13,760 | | | | | | | | | | | | | | | | | | | | | As of December 31, 2015 | | | | | | | | | | | | | | | | | | Inventories, net | | $ | | | $ | 505 | | $ | 388 | | $ | | | $ | 893 | | | Property and equipment, net | | | 88,788 | | | 7,033 | | | 1,742 | | | 7,920 | | | 105,483 | | | Broadcast licenses | | | 393,031 | | | | | | | | | | | | 393,031 | | | Goodwill | | | 3,581 | | | 19,930 | | | 1,044 | | | 8 | | | 24,563 | | | Other indefinite-lived intangible assets | | | | | | | | | 833 | | | | | | 833 | | | Amortizable intangible assets, net | | | 492 | | | 9,599 | | | 1,385 | | | 5 | | | 11,481 | |
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