10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from                      to                     

Commission file number 000-24525

Cumulus Media Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	36-4159663
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
3280 Peachtree Road, NW Suite 2300, Atlanta, GA	30305
(Address of Principal Executive Offices)	(ZIP Code)

(404) 949-0700

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	¨	Accelerated filer	ý
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No ý

As of October 21, 2014, the registrant had 232,200,147 outstanding shares of common stock consisting of: (i) 231,555,276 shares of Class A common stock; and (ii) 644,871 shares of Class C common stock.

CUMULUS MEDIA INC.

INDEX

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)	3
Condensed Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013	3
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2014 and 2013	4
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2014 and 2013	5
Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3. Quantitative and Qualitative Disclosures About Market Risk	43
Item 4. Controls and Procedures	43
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	43
Item 1A. Risk Factors	43
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 6. Exhibits	43
Signatures	45

2

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except for per share data)

(Unaudited)

	September 30, 2014			December 31, 2013
Assets
Current assets:
Cash and cash equivalents	$	26,757		$	32,792
Restricted cash	10,346			6,146
Accounts receivable, less allowance for doubtful accounts of $5,043 and $5,306 at September 30, 2014 and December 31, 2013, respectively	239,578			264,805
Trade receivable	3,733			4,419
Assets held for sale	15,007			—
Prepaid expenses and other current assets	47,023			68,893
Total current assets	342,444			377,055
Property and equipment, net	224,720			254,702
Broadcast licenses	1,596,715			1,596,337
Other intangible assets, net	261,405			315,490
Goodwill	1,255,519			1,256,741
Other assets	65,852			70,110
Total assets	$	3,746,655		$	3,870,435
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	127,886		$	146,537
Trade payable	4,259			3,846
Current portion of long-term debt	—			5,937
Total current liabilities	132,145			156,320
Long-term debt, excluding 7.75% senior notes	1,923,987			1,985,956
7.75% senior notes	610,000			610,000
Secured loan	—			25,000
Other liabilities	71,756			79,913
Deferred income taxes	475,539			500,506
Total liabilities	3,213,427			3,357,695
Stockholders’ equity:
Class A common stock, par value $0.01 per share; 750,000,000 shares authorized; 254,149,893 and 222,399,019 shares issued, and 231,555,276 and 198,193,819 shares outstanding, at September 30, 2014 and December 31, 2013, respectively	2,541			2,223
Class B common stock, par value $0.01 per share; 600,000,000 shares authorized; 0 and 15,424,944 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	—			154
Class C common stock, par value $0.01 per share; 644,871 shares authorized, issued and outstanding at both September 30, 2014 and December 31, 2013	6			6
Treasury stock, at cost, 22,594,617 and 24,205,200 shares at September 30, 2014 and December 31, 2013, respectively	(231,517		)	(251,193		)
Additional paid-in-capital	1,595,910			1,603,669
Accumulated deficit	(833,712		)	(842,119		)
Total stockholders’ equity	533,228			512,740
Total liabilities and stockholders’ equity	$	3,746,655		$	3,870,435

See accompanying notes to the unaudited condensed consolidated financial statements.

3

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except for share and per share data)

(Unaudited)

	Three Months Ended   September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Net revenue	$	313,885		$	262,535		$	934,176		$	750,680
Operating expenses:
Content costs	106,574			65,559			316,868			189,765
Other direct operating expenses	119,864			99,202			353,588			292,576
Depreciation and amortization	29,143			27,614			87,095			82,814
LMA fees	2,021			609			5,226			2,293
Corporate expenses (including stock-based compensation expense of $4,399, $2,259, $12,645 and $7,393, respectively)	14,756			11,757			53,215			33,517
Gain on sale of assets or stations	(373		)	(5,198		)	(1,271		)	(3,662		)
Loss (gain) on derivative instrument	—			172			—			(2,672		)
Total operating expenses	271,985			199,715			814,721			594,631
Operating income	41,900			62,820			119,455			156,049
Non-operating (expense) income:
Interest expense	(36,647		)	(45,502		)	(109,380		)	(134,221		)
Interest income	352			308			1,024			942
Loss on early extinguishment of debt	—			—			—			(4,539		)
Other income (expense), net	443			(139		)	3,972			(247		)
Total non-operating expense, net	(35,852		)	(45,333		)	(104,384		)	(138,065		)
Income from continuing operations before income taxes	6,048			17,487			15,071			17,984
Income tax expense	(3,508		)	(6,995		)	(6,663		)	(19,043		)
Income (loss) from continuing operations	2,540			10,492			8,408			(1,059		)
(Loss) income from discontinued operations, net of taxes	—			(3,455		)	—			26,207
Net income	2,540			7,037			8,408			25,148
Less: dividends declared and accretion of redeemable preferred stock	—			4,369			—			10,676
Income attributable to common shareholders	$	2,540		$	2,668		$	8,408		$	14,472
Basic and diluted income (loss) per common share (see Note 11, “Earnings (Loss) Per Share”):
Basic: Income (loss) from continuing operations per share	$	0.01		$	0.03		$	0.04		$	(0.07	)
(Loss) income from discontinued operations per share	$	—		$	(0.02	)	$	—		$	0.15
Income per share	$	0.01		$	0.01		$	0.04		$	0.08
Diluted: Income (loss) from continuing operations per share	$	0.01		$	0.03		$	0.04		$	(0.07	)
(Loss) income from discontinued operations per share	$	—		$	(0.02	)	$	—		$	0.15
Income per share	$	0.01		$	0.01		$	0.04		$	0.08
Weighted average basic common shares outstanding	231,885,444			179,669,739			224,074,622			176,994,583
Weighted average diluted common shares outstanding	233,222,153			183,131,260			227,802,636			180,032,349

See accompanying notes to the unaudited condensed consolidated financial statements.

4

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

	Nine Months Ended September 30,
	2014			2013
Cash flows from operating activities:
Net income	$	8,408		$	25,148
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	87,095			86,809
Amortization of debt issuance costs/discounts	7,029			7,515
Provision for doubtful accounts	2,468			2,002
Gain on sale of assets or stations	(1,271		)	(3,556		)
Loss on early extinguishment of debt	—			4,539
Fair value adjustment of derivative instruments	21			(2,657		)
Deferred income taxes	6,663			9,659
Stock-based compensation expense	12,645			7,393
Changes in assets and liabilities:
Accounts receivable	22,759			10,686
Trade receivable	686			(1,717		)
Prepaid expenses and other current assets	(9,206		)	(3,350		)
Other assets	(12,304		)	(69		)
Accounts payable and accrued expenses	(19,085		)	(11,281		)
Trade payable	413			2,304
Other liabilities	(8,232		)	(5,758		)
Net cash provided by operating activities	98,089			127,667
Cash flows from investing activities:
Restricted cash	(4,200		)	2,192
Acquisition less cash acquired	(5,500		)	(52,685		)
Initial payment of Green Bay Option	—			(5,000		)
Proceeds from sale of assets or stations	15,718			6,492
Capital expenditures	(13,401		)	(8,448		)
Net cash used in investing activities	(7,383		)	(57,449		)
Cash flows from financing activities:
Repayment of borrowings under term loans and revolving credit facilities	(106,125		)	(88,931		)
Proceeds from borrowings under term loans and revolving credit facilities	10,000			—
Deferred financing costs	(21		)	(204		)
Tax withholding payments on behalf of employees	(1,320		)	(337		)
Proceeds from exercise of warrants	106			64
Proceeds from exercise of options	619			614
Preferred stock dividends	—			(9,395		)
Redemption of Series A preferred stock	—			(73,150		)
Proceeds from issuance of Series B preferred stock	—			77,241
Net cash used in financing activities	(96,741		)	(94,098		)
Decrease in cash and cash equivalents	(6,035		)	(23,880		)
Cash and cash equivalents at beginning of period	32,792			88,050
Cash and cash equivalents at end of period	$	26,757		$	64,170
Supplemental disclosures of cash flow information:
Interest paid	$	90,533		$	112,716
Income taxes paid	10,406			3,085
Supplemental disclosures of non-cash flow information:
Trade revenue	$	23,735		$	18,661
Trade expense	25,038			20,484

See accompanying notes to the unaudited condensed consolidated financial statements.

5

1. Description of Business, Interim Financial Data and Basis of Presentation:

Description of Business

Cumulus Media Inc. (and its consolidated subsidiaries, except as the context may otherwise require, “Cumulus,” “Cumulus Media,” “we,” “us,” “our,” or the “Company”) is a Delaware corporation, organized in 2002, and successor by merger to an Illinois corporation with the same name that had been organized in 1997.

Nature of Business

The Company combines high-quality local programming with iconic, nationally syndicated media, sports and entertainment brands in order to deliver premium choices for listeners, provide substantial reach for advertisers and create opportunities for shareholders. As the largest pure-play radio broadcaster in the United States, the Company provides exclusive content that is fully distributed through approximately 460 owned and operated stations in 90 U.S. media markets, approximately 9,000 broadcast radio affiliates and numerous digital channels. The Company is well-positioned in the widening digital audio space through a significant stake in the Rdio digital music service, featuring over 30 million songs on-demand in addition to custom playlists and exclusive curated channels. The Company is also the leading provider of country music and lifestyle content through its NASH brand, which will serve country fans through radio programming, NASH magazine, concerts, licensed products and television/video.

Interim Financial Data

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company and the notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The accompanying unaudited condensed consolidated financial statements include the condensed consolidated accounts of Cumulus and its wholly-owned subsidiaries, with all intercompany balances and transactions eliminated in consolidation. The December 31, 2013 condensed balance sheet data was derived from audited financial statements. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of our results of operations for, and financial condition as of the end of, the interim periods have been made. The results of operations for the three and nine months ended September 30, 2014, the cash flows for the nine months ended September 30, 2014 and the Company’s financial condition as of September 30, 2014, are not necessarily indicative of the results of operations or cash flows that can be expected for, or the Company’s financial condition that can be expected as of the end of, any other interim period or for the fiscal year ending December 31, 2014.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to bad debts, intangible assets, derivative financial instruments, income taxes, stock-based compensation, contingencies, litigation and purchase price allocations. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts and results may differ materially from these estimates.

Assets Held for Sale

On September 16, 2014, the Company entered into an agreement to sell certain land and buildings to a third party. The agreement is subject to various terms including a 60 day due diligence period. The carrying value of the identified assets have been classified as held for sale in the unaudited condensed consolidated balance sheet at September 30, 2014. The estimated fair value of the land and buildings is in excess of the carrying value.

Sale of San Francisco Baseball Associates, LLC Interest

On April 15, 2014, the Company sold its Class B Membership Interest of 1.59% in San Francisco Baseball Associates, LLC for $13.0 million, recognizing a gain on the sale of $3.2 million, which is included in other income (expense), net in the condensed consolidated statement of operations for the nine months ended September 30, 2014.

6

Reclassifications

Certain account balances in the 2013 periods have been reclassified to conform with classifications currently in use.

In the accompanying unaudited condensed consolidated statements of operations the Company separately presents content costs and other direct operating expenses as operating expense categories. In certain of the Company's historical disclosures, those line items were presented on a combined basis within the direct operating expenses line item in the statement of operations. Content costs consist of all costs related to the licensing, acquisition and development of the Company's programming. Other direct operating expenses consist of expenses related to the distribution and monetization of the Company's content across its platform and overhead expenses. There were no other costs included in direct operating expenses in 2013.

These reclassifications had no effect on previously reported results of operations or retained earnings.

Adoption of New Accounting Standards

ASU 2012-02. In July 2012, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2012-02. The amendments in this ASU give companies the option to perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired rather than calculating the fair value of the indefinite-lived intangible asset. The Company adopted this guidance effective January 1, 2013. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

ASU 2013-01. In January 2013, the FASB issued ASU 2013-01. The amendments in this ASU require companies to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The Company adopted this guidance effective January 1, 2013. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

ASU 2013-04. In February 2013, the FASB issued ASU 2013-04, which provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements where the total obligation is fixed at the reporting date, and for which no specific guidance currently exists. The Company adopted this guidance effective January 1, 2014. The adoption of this guidance did not have an impact on the Company's consolidated financial statements.

ASU 2013-11. In July 2013, the FASB issued ASU 2013-11. The amendments in this ASU clarify when a liability related to an unrecognized tax benefit should be presented in the financial statements as a reduction to the related deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. The Company adopted this guidance effective January 1, 2014. The adoption of this guidance did not have an impact on the Company's consolidated financial statements.

Recent Accounting Standards Updates

ASU 2014-08. In April 2014, the FASB issued ASU 2014-08. Under this ASU, only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. This ASU (1) expands the disclosure requirements for disposals that meet the definition of a discontinued operation, (2) requires entities to disclose information about disposals of individually significant components, (3) defines “discontinued operations” similarly to how it is defined under International Financial Reporting Standards ("IFRS") 5, and (4) requires entities to expand their disclosures about discontinued operations to include more information about assets, liabilities, income and expenses. In addition, this ASU will also require entities to disclose the pre-tax income attributable to a disposal of “an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements.” The ASU is effective prospectively for all disposals (or classifications as held for sale) that occur within annual periods beginning on or after December 15, 2014 and interim periods within those years. Early adoption is permitted. The Company is currently assessing the expected impact, if any, that this ASU will have on the consolidated financial statements.

ASU 2014-09. In May 2014, the FASB issued ASU 2014-09. The amended guidance under this ASU outlines a single comprehensive revenue model for entities to use in accounting for revenue arising from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the single comprehensive revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” Entities have the option of using either a full retrospective or modified approach to adopt the guidance. The ASU is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2016 (early adoption is not permitted). The Company is currently assessing the expected impact, if any, that this ASU will have on the consolidated financial statements.

7

ASU 2014-15. In August 2014, the FASB issued ASU 2014-15. The amendments in this update provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments in this ASU are effective for public and nonpublic entities for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently assessing the expected impact, if any, that this ASU will have on the consolidated financial statements.

2. Acquisitions and Dispositions

2014 Acquisitions and Dispositions

Wise Brothers Acquisition

On August 1, 2014, the Company completed the purchase of Wise Brother Media, Inc. for $5.5 million in cash (the "Wise Brothers Acquisition"). The total purchase price is subject to an increase if certain future conditions are met as detailed in the purchase agreement. The Company has estimated the fair value of the contingent consideration to be less than $0.2 million as of September 30, 2014. Any future change in the estimated fair value of the contingent consideration will be recorded in the Company's results of operations in the period of such change.

Revenues attributable to the assets acquired in the Wise Brothers Acquisition were not material to the Company’s condensed consolidated statement of operations for the three or nine months ended September 30, 2014.

The table below summarizes the preliminary purchase price allocation in the Wise Brothers Acquisition (dollars in thousands):

Allocation	Amount
Property and equipment	$	50
Deferred income taxes	100
Other intangible assets	5,500
Current liabilities	(75		)
Other liabilities	(75		)
Total purchase price	$	5,500

The definite-lived intangible assets acquired in the Wise Brothers Acquisition are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years	Fair Value
Programming content	4	$	5,500

2013 Acquisitions and Dispositions

Green Bay Purchase

On December 31, 2013, the Company completed the purchase of five radio stations in Green Bay, Wisconsin from Clear Channel Communications, Inc. ("Clear Channel") for $17.6 million in cash (the "Green Bay Purchase"). The Company had been operating these stations under a local marketing agreement ("LMA") with Clear Channel since April 10, 2009.

Revenues attributable to the stations acquired in the Green Bay Purchase were not material to the Company’s consolidated statement of operations for the three or nine months ended September 30, 2014.

8

The table below summarizes the purchase price allocation in the Green Bay Purchase (dollars in thousands):

Allocation	Amount
Property and equipment	$	1,111
Broadcast licenses	4,354
Goodwill	2,637
Fair value of exercised put option	9,534
Total purchase price	$	17,636

The material assumptions utilized in the valuation of intangible assets acquired and liabilities assumed include expected overall future market revenue growth rates for the residual year of approximately 2.5% and a weighted average cost of capital of 10.0%. Goodwill is equal to the difference between the purchase price and the value assigned to the tangible and intangible assets acquired and liabilities assumed. All of the acquired goodwill balance is deductible for tax purposes.

During the nine months ended September 30, 2014, the Company recorded a $2.6 million purchase accounting adjustment to reflect the Company's final determination of the fair value of broadcast licenses upon the date of acquisition.

WestwoodOne Acquisition

On December 12, 2013, Cumulus completed the acquisition of WestwoodOne, Inc. (formerly known as Dial Global, Inc., "WestwoodOne"), an independent, full-service radio network company offering news, sports, formats, prep services, talk and music programming, jingles and imaging, and special events, as well as national advertising sales representation (the "WestwoodOne Acquisition"). The WestwoodOne Acquisition added sports, news, talk, music and programming services content - enabling the Company to provide an even broader array of programming content to approximately 10,000 U.S. radio stations, other media platforms and international platforms. Content acquired through the WestwoodOne Acquisition included NFL, NCAA basketball, NASCAR, CBS News and other popular programming.

In connection with the WestwoodOne Acquisition, all of the issued and outstanding shares of capital stock of WestwoodOne were automatically canceled and converted into the right to receive an aggregate of approximately $45.0 million in cash, and WestwoodOne repaid all of its outstanding indebtedness. The payment of the purchase price to complete the WestwoodOne Acquisition (including the cash used to repay approximately $215.0 million of WestwoodOne’s outstanding indebtedness) was funded from cash on hand, which included $235.0 million in cash proceeds from the Townsquare Transaction (defined below). As a result of the WestwoodOne Acquisition, WestwoodOne became a wholly owned subsidiary of the Company.

Although the WestwoodOne Acquisition was not subject to the pre-closing notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act, the Antitrust Division of the Department of Justice (“DOJ”) is conducting a review of the transaction. Pursuant to an agreement entered into at the closing of the WestwoodOne Acquisition, $22.5 million of the purchase price was placed in escrow (the “Escrow Fund”) pending the completion of the DOJ investigation. The Escrow Fund will be available to compensate Cumulus for expenses in defending the investigation and to the extent Cumulus incurs any loss as a result of any final remedial action taken by the DOJ with respect to its investigation.

Revenues of $56.5 million and $190.5 million attributable to WestwoodOne were included in the Company’s condensed consolidated statement of operations for the three and nine months ended September 30, 2014, respectively.

Net income attributable to WestwoodOne has not been presented due to the impracticability of obtaining detailed data for the three and nine months ended September 30, 2014.

The table below summarizes the purchase price allocation in the WestwoodOne Acquisition (dollars in thousands):

9

Allocation	Amount
Current assets	$	91,171
Property and equipment	23,714
Other intangibles	150,900
Goodwill	104,912
Other assets	4,946
Current liabilities	(69,144		)
Other liabilities	(46,499		)
Total purchase price	$	260,000

The material assumptions utilized in the valuation of intangible assets acquired and liabilities assumed include expected overall future market revenue growth rates for the residual year of approximately 2.0% and a weighted average cost of capital of 10%. Goodwill is equal to the difference between the purchase price and the value assigned to the tangible and intangible assets acquired and liabilities assumed. The Company is treating the acquisition as a taxable asset acquisition pursuant to Internal Revenue Code Section 338(g). As such, all of the acquired goodwill balance is deductible for income tax purposes.

The definite-lived intangible assets acquired in the WestwoodOne Acquisition are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years	Fair Value
Affiliate relationships	9	$	150,900

Townsquare Transaction

On November 14, 2013, the Company completed the sale to Townsquare Media, LLC (“Townsquare”) of 53 radio stations in 12 small and mid-sized markets for $235.0 million in cash and the swap with Townsquare of 15 radio stations in two small and mid-sized markets in exchange for five radio stations in Fresno, California (together, the "Townsquare Transaction"). The Company used the cash proceeds from the Townsquare Transaction to fund a portion of the purchase price payable to complete the WestwoodOne Acquisition.

Revenues attributable to the assets acquired in the Townsquare Transaction were not material to the Company’s condensed consolidated statement of operations for the three or nine months ended September 30, 2014.

The table below summarizes the purchase price allocation in the Townsquare Transaction (dollars in thousands):

Allocation	Amount
Current assets	$	1,860
Property and equipment	6,345
Broadcast licenses	13,500
Goodwill	10,200
Other assets	246
Other intangibles	552
Current liabilities	(520		)
Total purchase price	32,183
Less: Carrying value of stations transferred	(159,053		)
Add: Cash received	235,028
Gain on asset exchange	$	108,158

The material assumptions utilized in the valuation of intangible assets acquired and liabilities assumed included overall future market revenue growth rates for the residual year of approximately 2.0% and a weighted average cost of capital of 10%. Goodwill is equal to the difference between the purchase price and the value assigned to the tangible and intangible assets acquired and liabilities assumed. All of the acquired goodwill balance is deductible for tax purposes.

10

During the nine months ended September 30, 2014, the Company recorded a $3.6 million purchase accounting adjustment to reflect the Company's final determination of the fair value of broadcast licenses upon the date of acquisition.

The definite-lived intangible assets acquired in the Townsquare Transaction are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years	Fair Value
Advertising relationships	5	$	552

WFME Asset Exchange

On January 8, 2013, the Company completed its previously announced asset exchange (the “WFME Asset Exchange”) with Family Stations, Inc., pursuant to which it exchanged its WDVY station in New York plus $40.0 million in cash for Family Stations’ WFME station in Newark, New Jersey. This asset exchange provided Cumulus with a radio station in the United States’ largest media market, for the national NASH entertainment brand based on the country music lifestyle. The total purchase price is subject to an increase of up to $10.0 million if certain future conditions are met as detailed in the purchase agreement. The Company has estimated the fair value of the contingent consideration to be less than $0.1 million as of each of September 30, 2014 and December 31, 2013. Any future change in the estimated fair value of the contingent consideration will be recorded in the Company’s results of operations in the period of such change.

The table below summarizes the purchase price allocation in the WFME Asset Exchange (dollars in thousands):

Allocation	Amount
Other assets	$	1,460
Goodwill	11,461
Broadcast licenses	27,100
Plant, property, and equipment, net	62
Total purchase price	40,083
Less: Cash consideration	(40,000		)
Less: Carrying value of station transferred	(52		)
Less: Contingent consideration	(31		)
Gain on asset exchange	$	—

The material assumptions utilized in the valuation of intangible assets included overall future market revenue growth rates for the residual year of approximately 2.0% and a weighted average cost of capital of 10.0%. Goodwill was equal to the difference between the purchase price and the value assigned to tangible and intangible assets acquired. All of the goodwill is deductible for tax purposes.

Pamal Broadcasting Asset Purchase

On January 17, 2013, the Company completed the acquisition of WMEZ-FM and WXBM-FM from Pamal Broadcasting Ltd. for a purchase price of $6.5 million (the "Pamal Broadcasting Asset Purchase"). The transaction was part of the Company’s ongoing efforts to focus on radio stations in larger markets and geographically strategic regional clusters.

Revenues attributable to the assets acquired in the Pamal Broadcasting Asset Purchase were not material to the Company’s condensed consolidated statement of operations for the three or nine months ended September 30, 2014.

The table below summarizes the purchase price allocation in the Pamal Broadcasting Asset Purchase (dollars in thousands):

Allocation	Amount
Plant, property, and equipment, net	$	783
Broadcast licenses	5,700
Total purchase price	$	6,483

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information assumes the WestwoodOne Acquisition and the Townsquare Transaction occurred as of January 1, 2013. This unaudited pro forma financial information has been prepared based on

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estimates and assumptions, which management believes are reasonable, and is not necessarily indicative of the consolidated financial position or results of operations that Cumulus would have achieved had either the WestwoodOne Acquisition or the Townsquare Transaction actually occurred on January 1, 2013 or on any other historical date, nor is it reflective of the Company’s expected actual financial position or results of operations for any future period (dollars in thousands):

	Unaudited Supplemental As Reported / Pro Forma Data				Unaudited Supplemental Pro Forma Data
	Three Months Ended September 30,		Nine Months Ended September 30,		Three Months Ended September 30,		Nine Months Ended September 30,
Description	2014				2013
Net revenue	$	313,885	$	934,176	$	313,968	$	917,451
Net income (loss)	2,540		8,408		4,909		(19,432		)

The unaudited pro forma financial information set forth above for the three and nine months ended September 30, 2013 includes adjustments to reflect: (i) depreciation and amortization expense based on the fair value of long-lived assets acquired in the WestwoodOne Acquisition and the Townsquare Transaction; (ii) the elimination of interest expense and the loss on extinguishment of debt in connection with the WestwoodOne Acquisition, as all of WestwoodOne's outstanding indebtedness (including preferred stock) was repaid in connection therewith, and (iii) certain other unaudited pro forma adjustments that would be required to be made to prepare unaudited pro forma financial information under Accounting Standards Codification ("ASC") Topic 805, Business Combinations.

Unaudited pro forma financial information for the Green Bay Purchase, WFME Asset Exchange, Pamal Broadcasting Asset Purchase, and Wise Brothers Acquisition is not required, as such information is not material to the Company's financial statements.

3. Discontinued Operations

On November 14, 2013, the Company completed the Townsquare Transaction. The results of operations associated with the stations disposed of in that transaction have been separately reported within discontinued operations, net of the related tax impact, in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2013.

For the three and nine months ended September 30, 2013, (loss) income from discontinued operations was as follows (dollars in thousands):

	Three Months Ended   September 30,			Nine Months Ended   September 30,
	2013
Discontinued operations:
Net revenue	$	18,538		$	52,940
Income from discontinued operations before taxes	7,914			21,252
Income tax (expense) benefit	(11,369		)	4,955
(Loss) income from discontinued operations	(3,455		)	26,207

4. Restricted Cash

As of September 30, 2014 and December 31, 2013, the Company’s balance sheet included approximately $10.3 million and $6.1 million, respectively, in restricted cash, of which $0.6 million relates to securing the maximum exposure generated by automated clearinghouse transactions in the Company's operating bank accounts and as dictated by the Company's bank's internal policies with respect to cash. At September 30, 2014 and December 31, 2013, the Company held $9.7 million and $5.5 million, respectively, relating to collateralizing standby letters of credit pertaining to certain leases and insurance policies.

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5. Intangible Assets and Goodwill

The following table presents the changes in intangible assets, other than goodwill, during the periods from January 1, 2013 to December 31, 2013 and January 1, 2014 to September 30, 2014, and balances as of such dates (dollars in thousands):

	Indefinite-Lived			Definite-Lived			Total
Intangible Assets:
Balance as of January 1, 2013	$	1,602,373		$	258,303		$	1,860,676
Acquisition	61,730			152,522			214,252
Disposition	(67,766		)	(8,627		)	(76,393		)
Amortization	—			(86,708		)	(86,708		)
Balance as of December 31, 2013	1,596,337			315,490			1,911,827
Purchase price allocation adjustments	963			—			963
Acquisition	—			6,066			6,066
Disposition	(585		)	(70		)	(655		)
Amortization	—			(60,081		)	(60,081		)
Balance as of September 30, 2014	$	1,596,715		$	261,405		$	1,858,120

The following table presents the changes in goodwill and accumulated impairment losses during the periods from January 1, 2014 to September 30, 2014 and January 1, 2013 to September 30, 2013, and balances as of such dates (dollars in thousands):

Goodwill:	2014			2013
Balance as of January 1:
Goodwill	$	1,586,482		$	1,525,335
Accumulated impairment losses	(329,741		)	(329,741		)
Subtotal	1,256,741			1,195,594
Acquisition	—			11,461
Purchase price allocation adjustments	(606		)	(1,889		)
Disposition	(616		)	(213		)
Balance as of September 30:
Goodwill	1,585,260			1,534,694
Accumulated impairment losses	(329,741		)	(329,741		)
Total	$	1,255,519		$	1,204,953

The Company has significant intangible assets recorded comprised primarily of broadcast licenses and goodwill acquired through acquisitions. The Company performs its annual impairment testing of broadcast licenses and goodwill during the fourth quarter and on an interim basis if events or circumstances indicate that broadcast licenses or goodwill may be impaired. The calculation of the fair value of each reporting unit is prepared using an income approach and discounted cash flow methodology. If the carrying value exceeds the estimate of fair value, the Company calculates impairment as the excess of the carrying value of goodwill over its estimated fair value and charges the impairment to results of operations in the period in which the impairment occurred. The Company reviews the carrying value of its definite-lived intangible assets for recoverability whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. There were no triggering events as of September 30, 2014 to necessitate the test as fair value exceeded carrying value.

6. Derivative Financial Instruments

The Company’s derivative financial instruments consist of the following:

Interest Rate Cap

On December 8, 2011, the Company entered into an interest rate cap agreement with JPMorgan Chase Bank, N.A. (“JPMorgan”), to limit the Company’s exposure to interest rate risk. The interest rate cap has an aggregate notional amount of $71.3 million. The agreement caps the LIBOR-based variable interest rate component of the Company’s long-term debt at a maximum of 3.0% on an equivalent amount of the Company’s term loans. The unaudited condensed consolidated balance

sheets as of September 30, 2014 and December 31, 2013 include long term-assets of less than $0.1 million attributable to the fair value of the interest rate cap. The Company reported interest expense of less than $0.1 million during the three months ended September 30, 2014 and 2013, respectively, attributed to the change in fair value adjustment. The interest rate cap matures on December 8, 2015.

The Company does not utilize financial instruments for trading or other speculative purposes.

Green Bay Option

On April 10, 2009, Clear Channel and the Company entered into an LMA pursuant to which the Company was responsible for operating (i.e., programming, advertising, etc.) five radio stations in Green Bay, Wisconsin, for a monthly fee payable to Clear Channel of approximately $0.2 million, in exchange for the Company retaining the operating profits from managing the radio stations. In 2013, Clear Channel exercised the put option contained in this LMA, which required the Company to purchase the five Green Bay radio stations subject to the LMA for $17.6 million (the fair value of those radio stations at the time of execution of the LMA) ("the Green Bay Option"). On December 31, 2013, the Company completed this acquisition (See Note 2 "Acquisitions and Dispositions").

The Company accounted for the Green Bay Option as a derivative contract. Accordingly, the fair value of the Green Bay Option was recorded as a liability with subsequent changes in the fair value recorded through earnings through the closing of the acquisition. The fair value of the Green Bay Option was determined using inputs that were supported by little or no market activity (a “Level 3” measurement). The fair value represented an estimate of the amount that the Company would have been required to pay if the option were transferred to another party as of the date of the valuation.

The location and fair value of derivatives in the unaudited condensed consolidated balance sheets are shown in the following table (dollars in thousands):

		Fair Value
Derivative Instruments	Balance Sheet Location	September 30, 2014		December 31, 2013
Derivatives not designated as hedging instruments:
Interest Rate Cap	Other assets	$	—	$	22
	Total	$	—	$	22

The location and effect of derivatives in the unaudited condensed consolidated statements of operations are shown in the following table (dollars in thousands):

		Recognized as Derivatives
		For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Derivative Instruments	Statement of Operations Location	2014		2013		2014		2013
Interest Rate Cap	Interest expense	$	—	$	42	$	21	$	15
Green Bay Option	Loss (gain) on derivative instrument	—		172		—		(2,672		)
	Total	$	—	$	214	$	21	$	(2,657	)

7. Long-Term Debt

The Company’s long-term debt consisted of the following as of September 30, 2014 and December 31, 2013 (dollars in thousands):

	September 30, 2014			December 31, 2013
Term Loan and Securitization Facility:
Term loan	$	1,953,875		$	2,025,000
Securitization facility	—			25,000
Less: term loan discount	(29,888		)	(33,107		)
Total Term Loan and Securitization Facility	1,923,987			2,016,893
7.75% senior notes	610,000			610,000
Less: Current portion of long-term debt	—			(5,937		)
Long-term debt, net	$	2,533,987		$	2,620,956

Amended and Restated Credit Agreement

On December 23, 2013, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”), among the Company, Cumulus Media Holdings Inc., a direct wholly-owned subsidiary of the Company (“Cumulus Holdings”), as borrower, and certain lenders and agents. The Credit Agreement consists of a $2.025 billion term loan (the “Term Loan”) maturing in December 2020 and a $200.0 million revolving credit facility (the “Revolving Credit Facility”) maturing in December 2018. Under the Revolving Credit Facility, up to $30.0 million of availability may be drawn in the form of letters of credit.

Term Loan borrowings and borrowings under the Revolving Credit Facility bear interest, at the option of Cumulus Holdings, based on the Base Rate (as defined below) or the London Interbank Offered Rate (“LIBOR”), in each case plus 3.25% on LIBOR-based borrowings and 2.25% on Base Rate-based borrowings. LIBOR-based borrowings are subject to a LIBOR floor of 1.0% under the Term Loan. Base Rate-based borrowings are subject to a Base Rate Floor of 2.0% under the Term Loan. Base Rate is defined, for any day, as the fluctuating rate per annum equal to the highest of the (i) Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 1/2 of 1.0%, (ii) prime commercial lending rate of JPMorgan Chase Bank, N.A., as established from time to time, and (iii) 90 day LIBOR plus 1.0%. Amounts outstanding under the Term Loan amortize at a rate of 1.0% per annum of the original principal amount of the Term Loan, payable quarterly, commencing March 31, 2014, with the balance payable on the maturity date.

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At September 30, 2014, the Term Loan bore interest at 4.25% per annum.

The representations, covenants and events of default in the Credit Agreement are customary for financing transactions of this nature. Events of default in the Credit Agreement include, among others: (a) the failure to pay when due the obligations owing thereunder; (b) the failure to comply with (and not timely remedy, if applicable) certain covenants; (c) certain defaults and accelerations under other indebtedness; (d) the occurrence of bankruptcy or insolvency events; (e) certain judgments against the Company or any of its restricted subsidiaries; (f) the loss, revocation or suspension of, or any material impairment in the ability to use one or more of, any material Federal Communications Commission ("FCC") licenses; (g) any representation or warranty made, or report, certificate or financial statement delivered, to the lenders subsequently proven to have been incorrect in any material respect; and (h) the occurrence of a Change in Control (as defined in the Credit Agreement). Upon the occurrence of an event of default, the lenders may terminate the loan commitments, accelerate all loans and exercise any of their rights under the Credit Agreement and the ancillary loan documents as a secured party.

In the event amounts are outstanding under the Revolving Credit Facility or any letters of credit are outstanding that have not been collateralized by cash, the Credit Agreement requires compliance with a consolidated first lien net leverage ratio covenant as of the end of each quarter. The required ratio at September 30, 2014 was 5.75 to 1. The ratio periodically decreases until it reaches 4.00 to 1 on March 31, 2018. As of September 30, 2014, the Company was in compliance with all of its covenants under the Credit Agreement.

Certain mandatory prepayments on the Term Loan are required upon the occurrence of specified events, including upon the incurrence of certain additional indebtedness, upon the sale of certain assets and upon the occurrence of certain condemnation or casualty events, and from excess cash flow.

The Company’s, Cumulus Holdings’ and their respective restricted subsidiaries’ obligations under the Credit Agreement are collateralized by a first priority lien on substantially all of the Company’s, Cumulus Holdings’ and their respective restricted subsidiaries’ assets (excluding the Company’s accounts receivable collateralizing the Company's revolving accounts receivable securitization facility (the “Securitization Facility”) with General Electric Capital Corporation (“GE”) as described below) in which a security interest may lawfully be granted, including, without limitation, intellectual property and substantially all of the capital stock of the Company’s direct and indirect domestic wholly-owned subsidiaries and 66% of the capital stock of any future first-tier foreign subsidiaries. In addition, Cumulus Holdings’ obligations under the Credit Agreement are guaranteed by the Company and substantially all of its restricted subsidiaries, other than Cumulus Holdings.

At September 30, 2014, the Company had $1.954 billion outstanding under the Term Loan and no amounts outstanding under the Revolving Credit Facility.

7.75% Senior Notes

On May 13, 2011, the Company issued $610.0 million aggregate principal amount of its 7.75% Senior Notes due 2019 (the "7.75% Senior Notes"). Proceeds from the sale of the 7.75% Senior Notes were used to, among other things, repay the $575.8 million outstanding under the term loan facility under the Company's prior credit agreement.

On September 16, 2011, the Company and Cumulus Holdings entered into a supplemental indenture with the trustee under the indenture governing the 7.75% Senior Notes which provided for, among other things, the (i) assumption by Cumulus Holdings of all obligations of the Company; (ii) substitution of Cumulus Holdings for the Company as issuer; (iii) release of the Company from all obligations as original issuer; and (iv) Company’s guarantee of all of Cumulus Holdings’ obligations, in each case under the indenture and the 7.75% Senior Notes.

Interest on the 7.75% Senior Notes is payable on each May 1 and November 1 of each year. The 7.75% Senior Notes mature on May 1, 2019.

Cumulus Holdings, as issuer of the 7.75% Senior Notes, may redeem all or part of the 7.75% Senior Notes at any time on or after May 1, 2015. At any time prior to May 1, 2014, Cumulus Holdings may redeem up to 35.0% of the 7.75% Senior Notes using the proceeds from certain equity offerings. At any time prior to May 1, 2015, Cumulus Holdings may redeem some or all of the 7.75% Senior Notes at a price equal to 100% of the principal amount, plus a “make-whole” premium. If Cumulus Holdings sells certain assets or experiences specific kinds of changes in control, it will be required to make an offer to purchase the 7.75% Senior Notes.

In connection with the substitution of Cumulus Holdings as the issuer of the 7.75% Senior Notes, the Company has also guaranteed the 7.75% Senior Notes. In addition, each existing and future domestic restricted subsidiary that guarantees the Company’s indebtedness, Cumulus Holdings’ indebtedness or indebtedness of the Company’s subsidiary guarantors (other than the Company’s subsidiaries that hold the licenses for the Company’s radio stations) guarantees, or will guarantee, the 7.75% Senior Notes. The 7.75% Senior Notes are senior unsecured obligations of Cumulus Holdings and rank equally in right of

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payment to all existing and future senior unsecured debt of Cumulus Holdings and senior in right of payment to all future subordinated debt of Cumulus Holdings. The 7.75% Senior Notes guarantees are the Company’s and the other guarantors’ senior unsecured obligations and rank equally in right of payment to all of the Company’s and the other guarantors’ existing and future senior debt and senior in right of payment to all of the Company’s and the other guarantors’ future subordinated debt. The 7.75% Senior Notes and the guarantees are effectively subordinated to any of Cumulus Holdings’, the Company’s or the guarantors’ existing and future secured debt to the extent of the value of the assets securing such debt. In addition, the 7.75% Senior Notes and the guarantees are structurally subordinated to all indebtedness and other liabilities, including preferred stock, of the Company’s non-guarantor subsidiaries, including all of the liabilities of the Company’s and the guarantors’ foreign subsidiaries and the Company’s subsidiaries that hold the licenses for the Company’s radio stations.

For the three and nine months ended September 30, 2014, the Company recorded an aggregate of $2.3 million and $7.0 million, respectively, of amortization of debt discount and debt issuance costs related to its Term Loan, Securitization Facility and 7.75% Senior Notes. For the three and nine months ended September 30, 2013, the Company recorded an aggregate of $2.3 million and $7.5 million of amortization of debt discount and debt issuance costs related to its first lien term loan and second lien term loan under the Company's prior credit agreement and 7.75% Senior Notes.

Accounts Receivable Securitization Facility

On December 6, 2013, the Company entered into a 5-year, $50.0 million Securitization Facility with GE, as a lender, as swingline lender and as administrative agent (together with any other lenders party thereto from time to time, the “Lenders”).

In connection with the entry into the Securitization Facility, pursuant to a Receivables Sale and Servicing Agreement, dated as of December 6, 2013 (the “Sale Agreement”), certain subsidiaries of the Company (collectively, the “Originators”) may sell and/or contribute their existing and future accounts receivable (representing all of the Company’s accounts receivable) to a special purpose entity and wholly owned subsidiary of the Company (the “SPV”). The SPV may thereafter make borrowings from the Lenders, which borrowings will be secured by those receivables, pursuant to a Receivables Funding and Administration Agreement, dated as of December 6, 2013 (the “Funding Agreement”). Cumulus Holdings services the accounts receivable on behalf of the SPV.

Advances available under the Funding Agreement at any time are subject to a borrowing base determined based on advance rates relating to the value of the eligible receivables held by the SPV at that time. The Securitization Facility matures on December 6, 2018, subject to earlier termination at the election of the SPV. Advances bear interest based on either LIBOR plus 2.50% or the Index Rate (as defined in the Funding Agreement) plus 1.00%. The SPV is also required to pay a monthly fee based on any unused portion of the Securitization Facility. The Securitization Facility contains representations and warranties, affirmative and negative covenants, and events of default that are customary for financings of this type.

At September 30, 2014, there were no amounts outstanding under the Securitization Facility.

8. Fair Value Measurements

The three levels of the fair value hierarchy to be applied to financial instruments when determining fair value are described below:

Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access;

Level 2 — Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and

Level 3 — Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

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A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial assets and liabilities are measured at fair value on a recurring basis and non-financial assets and liabilities are measured at fair value on a non-recurring basis. Fair values as of September 30, 2014 and December 31, 2013 were as follows (dollars in thousands):

				Fair Value Measurements at September 30, 2014 Using
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Equity interest in Pulser Media (2)	$	10,105		$	—	$	—	$	10,105
Total assets	$	10,105		$	—	$	—	$	10,105
Financial liabilities:
Other current liabilities
Contingent consideration (3)	$	(181	)	$	—	$	—	$	(181	)
Total liabilities	$	(181	)	$	—	$	—	$	(181	)

				Fair Value Measurements at December 31, 2013 Using
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Interest Rate Cap (1)	$	22		$	—	$	22	$	—
Equity interest in Pulser Media (2)	104			—		—		104
Total assets	$	126		$	—	$	22	$	104
Financial liabilities:
Other current liabilities
Contingent consideration (3)	$	(31	)	$	—	$	—	$	(31	)
Total liabilities	$	(31	)	$	—	$	—	$	(31	)

(1) Pursuant to the Interest Rate Cap, the Company pays a fixed interest rate on a $71.3 million notional amount of its term loan. The fair value of the Interest Rate Cap is determined based on a discounted cash flow analysis of the expected future cash flows using observable inputs, including interest rates and yield curves. Derivative valuations incorporate adjustments that are necessary to reflect the credit risk.

(2) On September 13, 2013, the Company and Pulser Media (the parent company of Rdio) ("Pulser"), entered into a five year strategic promotional partnership and sales arrangement (the "Rdio Agreement"). In exchange for $75 million of promotional commitments over five years, Cumulus will receive a 15% equity interest in Pulser, with the opportunity to earn additional equity, see Note 13 "Commitments and Contingencies". The fair value of the equity interest in Pulser was determined using inputs that are supported by little or no market activity (a Level 3 measurement). At September 30, 2014 the fair value of the equity interest in Pulser approximated its cost basis and the Company determined that the investment was not impaired.

(3) The fair value of the contingent consideration was determined using inputs that are supported by little or no market activity (a Level 3 measurement). Contingent consideration represents the fair value of the additional cash consideration potentially payable as part of the WFME Asset Exchange and Wise Brothers Acquisition. See Note 2 “Acquisitions and Dispositions”.

The assets associated with the Company’s Interest Rate Cap are measured within Level 2 of the fair value hierarchy. To estimate the fair value of the Interest Rate Cap, the Company used an industry standard cash valuation model, which utilizes a discounted cash flow approach, with all significant inputs derived from or corroborated by observable market data. See Note 6, “Derivative Financial Instruments.”

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The reconciliation below contains the components of the change in fair value associated with the equity interest in Pulser from January 1, 2014 to September 30, 2014 (dollars in thousands):

Description	Equity Interest in Pulser
Fair value balance at January 1, 2014	$	104
Add: Additions to equity interest in Pulser	10,001
Fair value balance at September 30, 2014	$	10,105

The reconciliation below contains the components of the change in continuing contingency associated with the contingent consideration from January 1, 2014 to September 30, 2014 (dollars in thousands):

Description	Contingent Consideration
Fair value balance at January 1, 2014	$	(31	)
Add: Wise Brothers Acquisition	(150		)
Fair value balance at September 30, 2014	$	(181	)

Quantitative information regarding the significant unobservable inputs related to the WFME Asset Exchange contingent consideration as of September 30, 2014 was as follows (dollars in thousands):

Fair Value		Valuation Technique	Unobservable Inputs
$	31	Income Approach	Total term	5 years
			Conditions	3
			Bond equivalent yield discount rate	0.1	%

Significant increases (decreases) in any of the inputs in isolation would result in a lower (higher) fair value measurement.

Quantitative information regarding the significant unobservable inputs related to the Wise Brothers Acquisition contingent consideration as of September 30, 2014 was as follows (dollars in thousands):

Fair Value		Valuation Technique	Unobservable Inputs
$	150	Income Approach	Total term	2 years
			Conditions	4

Significant increases (decreases) in any of the inputs in isolation would result in a lower (higher) fair value measurement.

The following table shows the gross amount and fair value of the Company’s Term Loan, Securitization Facility and 7.75% Senior Notes (dollars in thousands):

	September 30, 2014		December 31, 2013
Term Loan:
Carrying value	$	1,953,875	$	2,025,000
Fair value - Level 2	1,914,798		2,025,000
Securitization Facility:
Carrying value	$	—	$	25,000
Fair value - Level 2	—		25,000
7.75% Senior Notes:
Carrying value	$	610,000	$	610,000
Fair value - Level 2	620,675		641,598

As of September 30, 2014, the Company used trading prices of 98.00% to calculate the fair value of the Term Loan, and 101.75% to calculate the fair value of the 7.75% Senior Notes.

As of December 31, 2013, the Company used trading prices of 100.00% to calculate the fair value of the Term Loan and the Securitization Facility, and 105.18% to calculate the fair value of the 7.75% Senior Notes.

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9. Stockholders’ Equity

The Company is authorized to issue an aggregate of 1,450,644,871 shares of stock divided into four classes consisting of: (i) 750,000,000 shares designated as Class A common stock, (ii) 600,000,000 shares designated as Class B common stock, (iii) 644,871 shares designated as Class C common stock and (iv) 100,000,000 shares of preferred stock, each with a par value of $0.01 per share.

On October 16, 2013, the Company issued and sold 18,860,000 shares of its Class A common stock in an underwritten public offering, which included the full exercise of the underwriter’s over allotment option to purchase 2,460,000 shares, at a price of $5.00 per share. The Company received net proceeds after underwriting discounts and commissions and estimated offering expenses of $89.8 million and used approximately $78.0 million of the net proceeds from the offering to redeem all then-outstanding shares of the Company’s Series B preferred stock, including accrued and unpaid dividends. The remaining net proceeds from the offering were placed in the Company’s corporate treasury for general corporate purposes, and are being used from time to time for, among other things, repayment of debt, capital expenditures, the financing of possible business expansions and acquisitions, increasing the Company’s working capital and the financing of ongoing operating expenses and overhead.

Common Stock

Except with regard to voting and conversion rights, shares of Class A, Class B and Class C common stock are identical in all respects. The preferences, qualifications, limitations, restrictions, and the special or relative rights in respect of the common stock and the various classes of common stock are as follows:

• Voting Rights. The holders of shares of Class A common stock are entitled to one vote per share on any matter submitted to a vote of the stockholders of the Company, and the holders of shares of Class C common stock are entitled to ten votes for each share of Class C common stock held. Generally, the holders of shares of Class B common stock are not entitled to vote on any matter. However, holders of Class B common stock and Class C common stock are entitled to a separate class vote on any amendment or modification of any specific rights or obligations of the holders of Class B common stock or Class C common stock, respectively, that does not similarly affect the rights or obligations of the holders of Class A common stock. The holders of Class A common stock and of Class C common stock vote together, as a single class, on all matters submitted to a vote to the stockholders of the Company.

• Conversion. Each holder of Class B common stock and Class C common stock is entitled to convert at any time all or any part of such holder’s shares into an equal number of shares of Class A common stock; provided, however, that to the extent that such conversion would result in the holder holding more than 4.99% of the Class A common stock following such conversion, the holder will first be required to deliver to the Company an ownership certification to enable the Company to (a) determine that such holder does not have an attributable interest in another entity that would cause the Company to violate applicable FCC rules and regulations and (b) obtain any necessary approvals from the FCC or the Department of Justice. During the nine months ended September 30, 2014, all of the approximately 3.3 million shares of outstanding Class B common stock were converted into shares of Class A common stock.

After payment of dividends to the holders of any outstanding shares of Series B Preferred Stock, the holders of all classes of common stock are entitled to share ratably in any dividends that may be declared by the board of directors of the Company.

2009 Warrants

In June 2009, in connection with the execution of an amendment to the Company's then-outstanding credit agreement, the Company issued warrants to the lenders thereunder that allow them to acquire up to 1.3 million shares of Class A common stock at an exercise price of $1.17 per share (the “2009 Warrants”). The 2009 Warrants expire on June 29, 2019. The number of shares of Class A common stock issuable upon exercise of the 2009 Warrants is subject to adjustment in certain circumstances, including upon the payment of a dividend in shares of Class A common stock. At September 30, 2014, 0.5 million 2009 Warrants remained outstanding.

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Equity Held in Reserve

Pursuant to the agreement governing the Company's acquisition of Citadel Broadcasting Company ("Citadel") in 2011 (the "Citadel Merger"), warrants to purchase 2.4 million shares of the Company’s common stock were reserved for potential future issuance in connection with the settlement of certain remaining allowed, disputed or not reconciled claims related to Citadel's bankruptcy. As part of the June 2014 completion of proceedings related to the Citadel Bankruptcy, the 2.4 million shares were issued for $25.0 million from treasury stock. The equity held in reserve was included in additional paid-in-capital on the accompanying unaudited condensed consolidated balance sheet at December 31, 2013.

Company Warrants

As a component of the Citadel Merger and the related financing transactions, the Company issued warrants to purchase an aggregate of 71.7 million shares of Class A common stock (the "Company Warrants") under a warrant agreement dated September 16, 2011 (the "Warrant Agreement"). The Company Warrants are exercisable at any time prior to June 3, 2030 at an exercise price of $0.01 per share. The exercise price of the Company Warrants is not subject to any anti-dilution protection, other than standard adjustments in the case of stock splits, dividends and the like. Pursuant to the terms and conditions of the Warrant Agreement, upon the request of a holder, the Company has the discretion to issue, upon exercise of the Company Warrants, shares of Class B common stock in lieu of an equal number of shares of Class A common stock and, upon request of a holder and at the Company’s discretion, the Company has the right to exchange such warrants to purchase an equivalent number of shares of Class B common stock for outstanding warrants to purchase shares of Class A common stock.

Conversion of the Company Warrants is subject to compliance with applicable FCC regulations, and the Company Warrants are exercisable provided that ownership of the Company’s securities by the holder does not cause the Company to violate applicable FCC rules and regulations relating to foreign ownership of broadcasting licenses.

Holders of Company Warrants are entitled to participate ratably in any distributions on the Company’s common stock on an as-exercised basis. No distribution will be made to holders of Company Warrants or common stock if (i) an FCC ruling, regulation or policy prohibits such distribution to holders of Company Warrants or (ii) the Company’s FCC counsel opines that such distribution is reasonably likely to cause (a) the Company to violate any applicable FCC rules or regulations or (b) any holder of Company Warrants to be deemed to hold an attributable interest in the Company.

During the three months ended September 30, 2014, approximately 0.3 million Company Warrants were converted into shares of Class A common stock. At September 30, 2014, 2.2 million Company Warrants remained outstanding.

Crestview Warrants

Also on September 16, 2011, but pursuant to a separate warrant agreement, the Company issued warrants to purchase 7.8 million shares of Class A common stock with an exercise price, as adjusted to date, of $4.34 per share (the "Crestview Warrants"). The Crestview Warrants are exercisable until September 16, 2021, and the per share exercise price is subject to standard weighted average adjustments in the event that the Company issues additional shares of common stock or common stock derivatives for less than the fair market value per share, as defined in the Crestview Warrants, as of the date of such issuance. In addition, the number of shares of Class A common stock issuable upon exercise of the Crestview Warrants, and the exercise price of the Crestview Warrants, are subject to adjustment in the, case of stock splits, dividends and the like. As of September 30, 2014, all 7.8 million Crestview Warrants remained outstanding.

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10. Stock-Based Compensation Expense

On February 16, 2012, the Company granted 161,724 shares of time-vesting restricted Class A common stock, with an aggregate grant date fair value of $0.6 million, to the non-employee directors of the Company with a cliff vesting term of one year. In addition, on February 16, 2012, the Company granted time-vesting stock options to purchase 1.4 million shares of Class A common stock to certain employees, with an aggregate grant date fair value of $3.3 million. The options have an exercise price of $4.34 per share, with 30% of the awards having vested on each of September 16, 2012 and February 16, 2013, and 20% having vested on February 16, 2014 and the final 20% vesting on February 16, 2015.

On December 27, 2012, the Company issued stock options to an officer of the Company exercisable for 0.8 million shares of Class A common stock with an aggregate grant date fair value of $1.1 million. The options have an exercise price of $4.34 per share, and provide for vesting on each of the first four anniversaries of the date of grant, with 30% of the award vesting on each of the first two anniversaries thereof, and 20% of the award vesting on each of the next two anniversaries thereof.

On May 9, 2013, the Company granted 168,540 shares of time-vesting restricted Class A common stock, with an aggregate grant fair value of $0.6 million, to the non-employee directors of the Company with a cliff vesting term of one year.

On May 22, 2014, the Company granted 93,312 shares of time-vesting restricted Class A common stock, with an aggregate grant fair value of $0.6 million, to the non-employee directors of the Company with a cliff vesting term of one year.

During the three months ended September 30, 2014, the Company granted 0.3 million stock options with an aggregate grant date fair value of $1.0 million. During the nine months ended September 30, 2014, the Company granted 0.7 million stock options with an aggregate grant date fair value of $2.7 million. The options range in exercise price from $5.56 to $7.74 per share, and provide for vesting on each of the first four anniversaries of the date of grant, with 30% of the award vesting on each of the first two anniversaries thereof, and 20% of the award vesting on each of the next two anniversaries thereof.

For the three and nine months ended September 30, 2014, and 2013, the Company recognized approximately $4.4 million, $12.6 million, $2.3 million and $7.4 million, respectively, in stock-based compensation expense related to equity awards. 

As of September 30, 2014, unrecognized stock-based compensation expense of approximately $30.4 million related to equity awards is expected to be recognized over a weighted average remaining life of 2.42 years. Unrecognized stock-based compensation expense for equity awards will be adjusted for future changes in estimated forfeitures.

The total fair value of restricted stock awards that vested during the three and nine months ended September 30, 2014 was $0.0 million and $2.1 million, respectively. The total fair value of restricted stock awards that vested during each of the three and nine months ended September 30, 2013 was $0.0 million and $1.6 million, respectively. 1.3 million and 0.1 million stock options were exercised during the nine months ended September 30, 2014 and 2013, respectively.

11. Earnings (Loss) Per Share

For all periods presented, the Company has disclosed basic and diluted earnings (loss) per common share utilizing the two-class method. Basic earnings (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period. In accordance with the terms of the Company's certificate of incorporation, the Company allocates undistributed net income (loss) from continuing operations after any allocation for preferred stock dividends between each class of common stock on an equal basis.

Non-vested restricted shares of Class A common stock and the Company Warrants are considered participating securities for purposes of calculating basic weighted average common shares outstanding in periods in which the Company records net income. Diluted earnings (loss) per share is computed in the same manner as basic earnings (loss) per share after assuming issuance of common stock for all potentially dilutive equivalent shares, which includes stock options and certain other warrants to purchase common stock. Antidilutive instruments are not considered in this calculation. Under the two-class method, net income (loss) is allocated to common stock and participating securities to the extent that each security may share in earnings (loss), as if all of the earnings (loss) for the period had been distributed. Earnings (loss) are allocated to each participating security and common shares equally, after deducting dividends declared or accretion on preferred stock. The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three and nine months ended September 30, 2014 and 2013 (amounts in thousands, except per share data):

20

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Basic Income (Loss) Per Share
Numerator:
Undistributed net income (loss) from continuing operations	$	2,540	$	10,492	$	8,408	$	(1,059	)
Less:
Dividends declared on redeemable preferred stock	—		4,091		—		9,395
Accretion of redeemable preferred stock	—		486		—		2,474
Participation rights of the Company Warrants in undistributed earnings	25		896		318		—
Participation rights of unvested restricted stock in undistributed earnings	2		12		9		—
Basic undistributed net income (loss) from continuing operations attributable to common shares	$	2,513	$	5,007	$	8,081	$	(12,928	)
Denominator:
Basic weighted average shares outstanding	231,885		179,700		224,075		176,995
Basic undistributed net income (loss) from continuing operations per share--attributable to common shares	$	0.01	$	0.03	$	0.04	$	(0.07	)
Diluted Income (Loss) Per Share:
Numerator:
Undistributed net income (loss) from continuing operations	$	2,540	$	10,492	$	8,408	$	(1,059	)
Less:
Dividends declared on redeemable preferred stock	—		4,091		—		9,395
Accretion of redeemable preferred stock	—		486		—		2,474
Participation rights of the Company Warrants in undistributed net earnings	25		881		313		—
Participation rights of unvested restricted stock in undistributed earnings	2		12		9		—
Basic undistributed net income (loss) from continuing operations attributable to common shares	$	2,513	$	5,022	$	8,086	$	(12,928	)
Denominator:
Basic weighted average shares outstanding	231,885		179,700		224,075		176,995
Effect of dilutive stock options and warrants	1,337		3,432		3,728		—
Diluted weighted average shares outstanding	233,222		183,132		227,803		176,995
Diluted undistributed net income (loss) from continuing operations attributable to common shares	$	0.01	$	0.03	$	0.04	$	(0.07	)

12. Income Taxes

For the three months ended September 30, 2014, the Company recorded income tax expense of $3.5 million on pre-tax income from continuing operations of $6.0 million, resulting in an effective tax rate for the three months ended September 30, 2014 of approximately 58.3%. For the three months ended September 30, 2013, the Company recorded income tax expense of $7.0 million on pre-tax income from continuing operations of $17.5 million, resulting in an effective tax rate for the three months ended September 30, 2013 of approximately 40.0%.

The difference between the effective tax rate and the federal statutory rate of 35.0% for the three months ended September 30, 2014 primarily relates to state and local income taxes and changes in the valuation allowance on certain separate company filing jurisdiction net operating losses. For the three months ended September 30, 2013, the primary differences

21

between the effective tax rate and federal statutory rate of 35.0% relate to state and local income taxes and tax amortization of broadcast licenses and goodwill as well as an allocation of the total tax provision to discontinued operations.

For the nine months ended September 30, 2014, the Company recorded income tax expense of $6.7 million on pre-tax income from continuing operations of $15.1 million, resulting in an effective tax rate for the nine months ended September 30, 2014 of approximately 44.4%. For the nine months ended September 30, 2013, the Company recorded an income tax expense of $19.0 million on pre-tax income from continuing operations of $18.0 million, resulting in an effective tax rate for the nine months ended September 30, 2013 of approximately 105.6%.

The difference between the effective tax rate and the federal statutory rate of 35.0% for the nine months ended September 30, 2014 primarily relates to state and local income taxes and changes in the valuation allowance on certain separate company filing jurisdiction net operating losses. For the nine months ended September 30, 2013, the primary differences between the effective tax rate and federal statutory rate of 35.0% relate to state and local income taxes, tax amortization of broadcast licenses and an allocation of a tax benefit to discontinued operations.

The Company continually reviews the adequacy of the valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC Topic 740. As of September 30, 2014, the Company continues to maintain a partial valuation allowance on certain state net operating loss carryforwards for which the Company does not believe they will be able to meet the more likely than not recognition standard for recovery. As of September 30, 2013, the Company maintained a full valuation allowance on its net deferred tax assets excluding deferred tax liabilities associated with the Company's indefinite lived intangible assets and deferred cancellation of debt income for which no estimated amount of deferred tax assets were available to satisfy. The valuation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company's financial statements or tax returns as well as future profitability.

We believe our annual effective tax rate before discrete items for fiscal year 2014 will be approximately 47.3%. The difference between the annual estimated effective tax rate and the federal statutory rate of 35% primarily relates to the valuation allowance on certain separate company net operating losses incurred in 2014.

13. Commitments and Contingencies

Future Commitments

Effective December 31, 2009, the Company’s radio music license agreements with the two largest performance rights organizations, The American Society of Composers, Authors and Publishers (“ASCAP”) and Broadcast Music, Inc. (“BMI”), expired. In January 2010, the Radio Music License Committee (the “RMLC”), which negotiates music licensing fees for most of the radio industry with ASCAP and BMI, filed motions in the New York courts against these organizations on behalf of the radio industry, seeking interim fees and a determination of fair and reasonable industry-wide license fees. During 2010, the courts approved reduced interim fees for ASCAP and BMI. On January 27, 2012, the Federal District Court for the Southern District of New York approved a settlement between the RMLC and ASCAP concerning the fees payable covering the period January 1, 2010 through December 31, 2016. Included in the agreement is a $75.0 million industry fee credit against fees previously paid in 2010 and 2011, with such fees to be credited over the remaining period of the contract. The Company began recognizing the ASCAP credits as a reduction in direct operating expenses on January 1, 2012. On August 28, 2012, the Federal District Court for the Southern District of New York approved a settlement between the RMLC and BMI concerning the fees payable covering the period January 1, 2010 through December 31, 2016. Included in the agreement was a $70.5 million industry fee credit against fees previously paid in 2010 and 2011, with such fees having been made immediately available to the industry.

The radio broadcast industry’s principal ratings service is Nielsen Audio, which publishes surveys for domestic radio markets. Certain of the Company’s subsidiaries have agreements with Nielsen Audio under which they receive programming ratings materials in a majority of their respective markets. The remaining aggregate obligation under the agreements with

22

Nielsen Audio is approximately $136.4 million and is expected to be paid in accordance with the agreements through December 2017.

The Company engages Katz Media Group, Inc. (“Katz”) as its national advertising sales agent. The national advertising agency contract with Katz contains termination provisions that, if exercised by the Company during the term of the contract, would obligate the Company to pay a termination fee to Katz, calculated based upon a formula set forth in the contract.

On September 13, 2013, the Company and Pulser entered into the Rdio Agreement which provides that Cumulus will act as the exclusive promotional agent for Rdio ad products, including display, mobile, in-line audio, synced banners and other digital inventory that may become available from time to time. In exchange for $75.0 million of promotional commitments over five years, Cumulus will receive 15% of the equity interests of Pulser, with the opportunity to earn additional equity in the form of warrants based on the achievement of certain performance milestones over the term of the Rdio Agreement. The Company will record the equity received for services at fair value and will evaluate the investment for impairment in subsequent periods.

The Company is committed under various contractual agreements to pay for broadcast rights that include news services and to pay for executives, talent, research, weather and other services.

The Company from time to time enters into radio network contractual obligations to guarantee a minimum amount of revenue share to contractual counterparties on certain programming in future years. Generally, these guarantees are subject to decreases dependent on clearance targets achieved. As of September 30, 2014, the Company believes that it will meet such minimum obligations.

On January 2, 2014 (the "Commencement Date”), Merlin Media, LLC (“Merlin”) and the Company entered into an LMA. Under this LMA, the Company is responsible for operating two FM radio stations in Chicago, Illinois, for monthly fees payable to Merlin of approximately $0.3 million, $0.4 million, $0.5 million and $0.6 million in the first, second, third and fourth years following the Commencement Date, respectively, in exchange for the Company retaining the operating profits from these radio stations.

In connection therewith, the Company and Merlin also entered into an agreement pursuant to which the Company has the right to purchase these two FM radio stations until October 4, 2017, for an amount in cash equal to the greater of (i) $70.0 million minus the aggregate amount of monthly fees paid by the Company on or prior to the earlier of the closing date or the date that is four years after the Commencement Date; or (ii) $50.0 million, and Merlin has the right to require the Company to purchase these two FM radio stations at any time during a ten-day period commencing October 4, 2017 for $71.0 million, minus the aggregate amount of monthly fees paid by the Company on or prior to the earlier of the closing date and the date that is four years after the Commencement Date.

The Company determined through its review of the requirements of ASC Topic 810, Consolidation ("ASC 810") that the Company is not the primary beneficiary of the LMA with Merlin, and, therefore consolidation of the stations is not required.

On April 1, 2014, the Company initiated an exit plan for a lease due to a restructuring in connection with the acquisition of WestwoodOne (the "Exit Plan"), which includes charges related to terminated contract costs. In connection with the Exit Plan, the Company recorded restructuring costs of $0.1 million and $5.2 million for the three and nine months ended September 30, 2014, respectively, which costs are included in corporate expenses in the condensed consolidated statement of operations. As of September 30, 2014, liabilities related to the Exit Plan of $0.4 million were included in accounts payable and accrued expenses and are expected to be paid within one year and $4.4 million of non-current liabilities are included in other liabilities in the condensed consolidated balance sheet. We anticipate no additional future charges for the Exit Plan other than true-ups to closed facilities lease charges and accretion expense.

On April 25, 2014, the Company entered into an LMA with Universal Media Access, LLC “(Universal”) pursuant to which the Company will be responsible for operating one FM radio station serving San Jose and San Francisco, California for a fixed fee to Universal of approximately $1.4 million each year for two years in exchange for the Company retaining the operating profits from this radio station.

In connection therewith, the Company and Universal also entered into an agreement pursuant to which the Company has the right to purchase the radio station at any time from April 25, 2014 until April 5, 2016 for $14.8 million minus the aggregate amount of monthly LMA fees paid by the Company on or prior to the earlier of the closing date or the date that is 18 months after April 25, 2014. In addition, Universal has the right to require the Company to purchase the station at any time during a ten-day period commencing April 5, 2016 for $14.8 million, minus the aggregate amount of fees paid by the Company on or prior to the earlier of the closing date and the date that is two years after April 25, 2014.

23

The Company determined through its review of the requirements of ASC 810 that the Company is not the primary beneficiary of the LMA with Universal, and, therefore consolidation of the station is not required.

As described in Note 2, “Acquisitions and Dispositions”, the Company may be required to pay additional cash consideration for the acquisitions of WFME in New York and Wise Brothers.

Legal Proceedings

We are currently party to, or a defendant in, various claims or lawsuits that are generally incidental to our business. We also expect that from time to time in the future we will be party to, or a defendant in, various claims or lawsuits that are generally incidental to our business. We expect that we will vigorously contest any such claims or lawsuits and believe that the ultimate resolution of any known claim or lawsuit will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

14. Supplemental Condensed Consolidating Financial Information

At September 30, 2014, Cumulus (the "Parent Guarantor") and certain of its 100% owned subsidiaries (such subsidiaries, the “Subsidiary Guarantors”) provided guarantees of the obligations of Cumulus Holdings (the "Subsidiary Issuer") under the 7.75% Senior Notes. These guarantees are full and unconditional (subject to customary release provisions) as well as joint and several. Certain of the Subsidiary Guarantors may be subject to restrictions on their respective ability to distribute earnings to Cumulus Holdings or the Parent Guarantor. Not all of the subsidiaries of Cumulus and Cumulus Holdings guarantee the 7.75% Senior Notes (such non-guaranteeing subsidiaries, collectively, the “Subsidiary Non-guarantors”).

The following tables present (i) unaudited condensed consolidating statements of operations for the three and nine months ended September 30, 2014 and 2013, (ii) unaudited condensed consolidating balance sheets as of September 30, 2014 and December 31, 2013, and (iii) unaudited condensed consolidating statements of cash flows for the nine months ended September 30, 2014 and 2013, of each of the Parent Guarantor, Cumulus Holdings, the Subsidiary Guarantors, and the Subsidiary Non-guarantors. The results have been adjusted for discontinued operations (see Note 3 "Discontinued Operations").

Investments in consolidated subsidiaries are held primarily by the Parent Guarantor in the net assets of its subsidiaries and have been presented using the equity method of accounting. The “Eliminations” entries in the following tables primarily eliminate investments in subsidiaries and intercompany balances and transactions. The columnar presentations in the following tables are not consistent with the Company’s business groups; accordingly, this basis of presentation is not intended to present the Company’s financial condition, results of operations or cash flows on a consolidated basis.

Revision to Prior Period Financial Statements

During the fourth quarter of 2013, Cumulus Media Inc. determined that it did not properly classify certain intercompany transactions in its supplemental condensed consolidating financial information footnote in previous 2013 interim periods. Specifically, the Company should have presented the changes in assets and liabilities within operating activities for the Parent Guarantor as intercompany transactions, net within financing activities. There was no impact on the condensed consolidated balance sheet or statement of income.

In accordance with accounting guidance found in ASC 250-10 (SEC Staff Accounting Bulletin No. 99, Materiality), the Company assessed the materiality of the errors and concluded that the errors were not material to any of the Company’s previously issued financial statements. As permitted by the accounting guidance found in ASC 250-10 (SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the Company has presented a revised condensed consolidated statement of cash flows for the nine months ended September 30, 2013 and will revise the interim condensed consolidated statements of cash flows in future quarterly filings.

Reclassifications

Certain account balances in the 2013 periods have been reclassified to conform with classifications currently in use.

In the accompanying unaudited condensed consolidating statements of operations the Company separately presents content costs and other direct operating expenses as operating expense categories. In certain of the Company's historical disclosures, those line items were presented on a combined basis within the direct operating expenses line item in the statement of operations. Content costs consist of all costs related to the licensing, acquisition and development of the Company's programming. Other direct operating expenses consist of expenses related to the distribution and monetization of the Company's content across its platform and overhead expenses. There were no other costs included in direct operating expenses in 2013.

24

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended September 30, 2014

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Net revenue	$	—		$	125		$	313,760		$	—		$	—		$	313,885
Operating expenses:
Content costs	—			—			106,574			—			—			106,574
Other direct operating expenses	—			—			119,455			409			—			119,864
Depreciation and amortization	—			428			28,715			—			—			29,143
LMA fees	—			—			2,021			—			—			2,021
Corporate expenses (including stock-based compensation expense of $4,399)	—			14,756			—			—			—			14,756
Gain on sale of assets or stations	—			—			(373		)	—			—			(373		)
Total operating expenses	—			15,184			256,392			409			—			271,985
Operating (loss) income	—			(15,059		)	57,368			(409		)	—			41,900
Non-operating (expense) income:
Interest expense	(2,184		)	(34,416		)	—			(47		)	—			(36,647		)
Interest income	—			—			352			—			—			352
Other income, net	—			—			443			—			—			443
Total non-operating (expense) income, net	(2,184		)	(34,416		)	795			(47		)	—			(35,852		)
(Loss) income before income taxes	(2,184		)	(49,475		)	58,163			(456		)	—			6,048
Income tax benefit (expense)	1,427			31,750			(37,008		)	323						(3,508		)
(Loss) income from continuing operations	(757		)	(17,725		)	21,155			(133		)	—			2,540
Earnings (loss) from consolidated subsidiaries	3,297			21,022			(133		)	—			(24,186		)	—
Net income (loss)	$	2,540		$	3,297		$	21,022		$	(133	)	$	(24,186	)	$	2,540

25

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine Months Ended September 30, 2014

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Net revenue	$	—		$	354		$	933,822		$	—		$	—		$	934,176
Operating expenses:
Content costs	—			—			316,868			—			—			316,868
Other direct operating expenses	—			—			352,036			1,552			—			353,588
Depreciation and amortization	—			1,346			85,749			—			—			87,095
LMA fees	—			—			5,226			—			—			5,226
Corporate expenses (including stock-based compensation expense of $12,645)	—			53,215			—			—			—			53,215
Gain on sale of assets or stations	—			—			(1,271		)	—			—			(1,271		)
Total operating expenses	—			54,561			758,608			1,552			—			814,721
Operating (loss) income	—			(54,207		)	175,214			(1,552		)	—			119,455
Non-operating (expense) income:
Interest expense	(7,165		)	(101,999		)	—			(216		)	—			(109,380		)
Interest income	—			—			1,024			—			—			1,024
Other income, net	—			—			3,972			—			—			3,972
Total non-operating (expense) income, net	(7,165		)	(101,999		)	4,996			(216		)	—			(104,384		)
(Loss) income before income taxes	(7,165		)	(156,206		)	180,210			(1,768		)	—			15,071
Income tax benefit (expense)	3,168			69,064			(79,677		)	782						(6,663		)
(Loss) income from continuing operations	(3,997		)	(87,142		)	100,533			(986		)	—			8,408
Earnings (loss) from consolidated subsidiaries	12,405			99,547			(986		)	—			(110,966		)	—
Net income (loss)	$	8,408		$	12,405		$	99,547		$	(986	)	$	(110,966	)	$	8,408

26

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended September 30, 2013

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Net revenue	$	—		$	917		$	261,618		$	—		$	—		$	262,535
Operating expenses:
Content costs	—			—			65,559			—			—			65,559
Other direct operating expenses	—			—			98,674			528			—			99,202
Depreciation and amortization	—			471			27,143			—			—			27,614
LMA fees	—			—			609			—			—			609
Corporate expenses (including stock-based compensation expense of $2,259)	—			11,757			—			—			—			11,757
Loss on sale of assets or stations	—			—			(5,198		)	—			—			(5,198		)
Gain on derivative instrument	—			—			172			—			—			172
Total operating expenses	—			12,228			186,959			528			—			199,715
Operating (loss) income	—			(11,311		)	74,659			(528		)	—			62,820
Non-operating (expense) income:
Interest expense	(2,378		)	(43,124		)	—			—			—			(45,502		)
Interest income	—			—			308			—			—			308
Other expense, net	—			—			(139		)	—			—			(139		)
Total non-operating (expense) income, net	(2,378		)	(43,124		)	169			—			—			(45,333		)
(Loss) income before income taxes	(2,378		)	(54,435		)	74,828			(528		)	—			17,487
Income tax benefit (expense)	—			—			49,113			(56,108		)	—			(6,995		)
(Loss) income from continuing operations	(2,378		)	(54,435		)	123,941			(56,636		)	—			10,492
(Loss) income from discontinued operations, net of taxes	—			—			(44,094		)	40,639			—			(3,455		)
Earnings (loss) from consolidated subsidiaries	9,415			63,850			(15,997		)	—			(57,268		)	—
Net income (loss)	$	7,037		$	9,415		$	63,850		$	(15,997	)	$	(57,268	)	$	7,037

27

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine Months Ended September 30, 2013

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Net revenue	$	—		$	917		$	749,763		$	—		$	—		$	750,680
Operating expenses:
Content costs	—			—			189,765			—			—			189,765
Other direct operating expenses	—			—			291,035			1,541			—			292,576
Depreciation and amortization	—			1,451			81,363			—			—			82,814
LMA fees	—			—			2,293			—			—			2,293
Corporate expenses (including stock-based compensation expense of $7,393)	—			33,517			—			—			—			33,517
Loss on sale of assets or stations	—			—			(3,662		)	—			—			(3,662		)
Gain on derivative instrument	—			—			(2,672		)	—			—			(2,672		)
Total operating expenses	—			34,968			558,122			1,541			—			594,631
Operating (loss) income	—			(34,051		)	191,641			(1,541		)	—			156,049
Non-operating (expense) income:
Interest expense	(8,186		)	(126,035		)	—			—			—			(134,221		)
Interest income	—			—			942			—			—			942
Loss on early extinguishment of debt	—			(4,539		)	—			—			—			(4,539		)
Other expense, net	—			—			(247		)	—			—			(247		)
Total non-operating (expense) income, net	(8,186		)	(130,574		)	695			—			—			(138,065		)
(Loss) income before income taxes	(8,186		)	(164,625		)	192,336			(1,541		)	—			17,984
Income tax benefit (expense)	—			—			13,276			(32,319		)	—			(19,043		)
(Loss) income from continuing operations	(8,186		)	(164,625		)	205,612			(33,860		)	—			(1,059		)
Income from discontinued operations, net of taxes	—			—			17,795			8,412			—			26,207
Earnings (loss) from consolidated subsidiaries	33,334			197,959			(25,448		)	—			(205,845		)	—
Net income (loss)	$	25,148		$	33,334		$	197,959		$	(25,448	)	$	(205,845	)	$	25,148

28

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2014

(Dollars in thousands, except for share and per share data)

(Unaudited)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary  Issuer)		Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	26,489	$	268		$	—		$	—		$	26,757
Restricted cash	—			10,346		—			—			—			10,346
Accounts receivable, less allowance for doubtful accounts of $5,043	—			—		—			239,578			—			239,578
Trade receivable	—			—		3,733			—			—			3,733
Asset held for sale				—		15,007			—			—			15,007
Prepaid expenses and other current assets	—			24,820		22,203			—			—			47,023
Total current assets	—			61,655		41,211			239,578			—			342,444
Property and equipment, net	—			2,060		222,660			—			—			224,720
Broadcast licenses	—			—		—			1,596,715			—			1,596,715
Other intangible assets, net	—			—		261,405			—			—			261,405
Goodwill	—			—		1,255,519			—			—			1,255,519
Investment in consolidated subsidiaries	616,828			4,160,697		1,121,176			—			(5,898,701		)	—
Intercompany receivables, net	—			84,391		1,399,949			—			(1,484,340		)	—
Other assets	—			44,502		20,559			791			—			65,852
Total assets	$	616,828		$	4,353,305	$	4,322,479		$	1,837,084		$	(7,383,041	)	$	3,746,655
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	—		$	31,689	$	96,197		$	—		$	—		$	127,886
Trade payable	—			—		4,259			—			—			4,259
Total current liabilities	—			31,689		100,456			—			—			132,145
Long-term debt, excluding 7.75% Senior Notes	—			1,923,987		—			—			—			1,923,987
7.75% Senior Notes	—			610,000		—			—			—			610,000
Other liabilities	—			10,430		61,326			—			—			71,756
Intercompany payables, net	83,600			1,160,371		—			240,369			(1,484,340		)	—
Deferred income taxes	—			—		—			475,539			—			475,539
Total liabilities	83,600			3,736,477		161,782			715,908			(1,484,340		)	3,213,427
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share; 750,000,000 shares authorized; 254,149,893 shares issued and 231,555,276 shares outstanding	2,541			—		—			—			—			2,541
Class C common stock, par value $0.01 per share; 644,871 shares authorized, issued and outstanding	6			—		—			—			—			6
Treasury stock, at cost, 22,594,617 shares	(231,517		)	—		—			—			—			(231,517		)
Additional paid-in-capital	1,595,910			238,672		4,219,656			2,095,935			(6,554,263		)	1,595,910
Accumulated (deficit) equity	(833,712		)	378,156		(58,959		)	(974,759		)	655,562			(833,712		)
Total stockholders’ equity (deficit)	533,228			616,828		4,160,697			1,121,176			(5,898,701		)	533,228
Total liabilities and stockholders’ equity (deficit)	$	616,828		$	4,353,305	$	4,322,479		$	1,837,084		$	(7,383,041	)	$	3,746,655

29

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2013

(Dollars in thousands, except for share and per share data)

(Unaudited)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)		Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Assets
Current assets:
Cash and cash equivalents	$	11,804		$	20,988	$	—		$	—		$	—		$	32,792
Restricted cash	—			6,146		—			—			—			6,146
Accounts receivable, less allowance for doubtful accounts of $5,306	—			—		—			264,805			—			264,805
Trade receivable	—			—		4,419			—			—			4,419
Prepaid expenses and other current assets	—			5,948		62,945			—			—			68,893
Total current assets	11,804			33,082		67,364			264,805			—			377,055
Property and equipment, net	—			3,272		251,430			—			—			254,702
Broadcast licenses	—			—		—			1,596,337			—			1,596,337
Other intangible assets, net	—			—		315,490			—			—			315,490
Goodwill	—			—		1,256,741			—			—			1,256,741
Investment in consolidated subsidiaries	589,163			3,824,690		1,118,952			—			(5,532,805		)	—
Intercompany receivables, net	—			88,227		1,011,218			24,090			(1,123,535		)	—
Other assets	—			46,774		22,440			896			—			70,110
Total assets	$	600,967		$	3,996,045	$	4,043,635		$	1,886,128		$	(6,656,340	)	$	3,870,435
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	—		$	24,966	$	121,521		$	50		$	—		$	146,537
Trade payable	—			—		3,846			—			—			3,846
Current portion of long-term debt	—			5,937		—			—			—			5,937
Total current liabilities	—			30,903		125,367			50			—			156,320
Long-term debt, excluding 7.75% Senior Notes	—			1,985,956		—			—			—			1,985,956
7.75% Senior Notes	—			610,000		—			—			—			610,000
Secured loan	—			—		—			25,000			—			25,000
Other liabilities	—			10,430		69,483			—			—			79,913
Intercompany payables, net	88,227			769,593		—			265,715			(1,123,535		)	—
Deferred income taxes	—			—		24,095			476,411			—			500,506
Total liabilities	88,227			3,406,882		218,945			767,176			(1,123,535		)	3,357,695
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share; 750,000,000 shares authorized; 222,399,019 shares issued and 198,193,819 shares outstanding	2,223			—		—			—			—			2,223
Class B common stock, par value $0.01 per share; 600,000,000 shares authorized; 15,424,944 shares issued and outstanding	154			—		—			—			—			154
Class C common stock, par value $0.01 per share; 644,871 shares authorized, issued and outstanding	6			—		—			—			—			6
Treasury stock, at cost, 24,205,200 shares	(251,193		)	—		—			—			—			(251,193		)
Additional paid-in-capital	1,603,669			223,412		3,983,196			2,092,725			(6,299,333		)	1,603,669
Accumulated (deficit) equity	(842,119		)	365,751		(158,506		)	(973,773		)	766,528			(842,119		)
Total stockholders’ equity (deficit)	512,740			589,163		3,824,690			1,118,952			(5,532,805		)	512,740
Total liabilities, redeemable preferred stock and stockholders’ equity (deficit)	$	600,967		$	3,996,045	$	4,043,635		$	1,886,128		$	(6,656,340	)	$	3,870,435

30

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2014

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Cash flows from operating activities:
Net income (loss)	$	8,408		$	12,405		$	99,547		$	(986	)	$	(110,966	)	$	8,408
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	—			1,346			85,749			—			—			87,095
Amortization of debt issuance costs/discounts	—			6,886			—			143			—			7,029
Provision for doubtful accounts	—			—			2,468			—			—			2,468
Gain on sale of assets or stations	—			—			(1,271		)	—			—			(1,271		)
Fair value adjustment of derivative instruments	—			21			—			—			—			21
Deferred income taxes	(3,168		)	(69,064		)	79,677			(782		)	—			6,663
Stock-based compensation expense	—			12,645			—			—			—			12,645
(Earnings) loss from consolidated subsidiaries	(12,405		)	(99,547		)	986			—			110,966			—
Changes in assets and liabilities	—			258,974			(275,568		)	(8,375		)	—			(24,969		)
Net cash (used in) provided by operating activities	(7,165		)	123,666			(8,412		)	(10,000		)	—			98,089
Cash flows from investing activities
Proceeds from sale of assets or stations	—			—			15,718			—			—			15,718
Restricted cash	—			(4,200		)	—			—			—			(4,200		)
Acquisition less cash required	—			—			(5,500		)	—			—			(5,500		)
Capital expenditures	—			(134		)	(13,267		)	—			—			(13,401		)
Net cash used in investing activities	—			(4,334		)	(3,049		)	—			—			(7,383		)
Cash flows from financing activities:
Intercompany transactions, net	(5,364		)	(41,365		)	11,729			35,000			—			—
Repayments of borrowings under term loans and revolving credit facilities	—			(71,125		)	—			(35,000		)	—			(106,125		)
Proceeds from borrowings under term loans and revolving credit facilities	—			—			—			10,000			—			10,000
Tax withholding payments on behalf of employees	—			(1,320		)	—			—			—			(1,320		)
Proceeds from exercises of warrants	106			—			—			—			—			106
Proceeds from exercises of options	619			—			—			—			—			619
Deferred financing costs	—			(21		)	—			—			—			(21		)
Net cash (used in) provided by financing activities	(4,639		)	(113,831		)	11,729			10,000			—			(96,741		)
(Decrease) increase in cash and cash equivalents	(11,804		)	5,501			268			—			—			(6,035		)
Cash and cash equivalents at beginning of period	11,804			20,988			—			—			—			32,792
Cash and cash equivalents at end of period	$	—		$	26,489		$	268		$	—		$	—		$	26,757

31

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2013

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Cash flows from operating activities:
Net income (loss)	$	25,148		$	33,334		$	197,959		$	(25,448	)	$	(205,845	)	$	25,148
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	—			1,451			85,358			—			—			86,809
Amortization of debt issuance costs/discount	—			7,515			—			—			—			7,515
Provision for doubtful accounts	—			—			2,002			—			—			2,002
Loss on sale of assets or stations	—			—			(3,556		)	—			—			(3,556		)
Loss on early extinguishment of debt	—			4,539			—			—			—			4,539
Fair value adjustment of derivative instruments	—			(27		)	(2,630		)	—			—			(2,657		)
Deferred income taxes	—			—			(14,249		)	23,908			—			9,659
Stock-based compensation expense	—			7,393			—			—			—			7,393
(Earnings) loss from consolidated subsidiaries	(33,334		)	(197,959		)	25,448			—			205,845			—
Changes in assets and liabilities	—			22,787			(33,512		)	1,540			—			(9,185		)
Net cash (used in) provided by operating activities	(8,186		)	(120,967		)	256,820			—			—			127,667
Cash flows from investing activities:
Proceeds from sale of assets or stations	—			—			6,492			—			—			6,492
Restricted cash	—			2,192			—			—			—			2,192
Initial payment of Green Bay Option	—			—			(5,000		)	—			—			(5,000		)
Proceeds from exchange of asset or stations	—			—			(52,685		)	—			—			(52,685		)
Capital expenditures	—			(441		)	(8,007		)	—			—			(8,448		)
Net cash provided by (used in) investing activities	—			1,751			(59,200		)	—			—			(57,449		)
Cash flows from financing activities:
Intercompany transactions, net	(68,787		)	272,658			(203,871		)	—			—			—
Repayments of borrowings under term loans and revolving credit facilities	—			(88,931		)	—			—			—			(88,931		)
Tax withholding payments on behalf of employees	—			(337		)	—			—			—			(337		)
Redemption of Series A preferred stock	(73,150		)	—			—			—			—			(73,150		)
Proceeds from issuance of Series B preferred stock	77,241			—			—			—			—			77,241
Series A Preferred stock dividends	(9,395		)	—			—			—			—			(9,395		)
Proceeds from exercises of warrants	614			—			—			—			—			614
Proceeds from exercise options	64			—			—			—			—			64
Deferred financing costs	—			(204		)	—			—			—			(204		)
Net cash (used in) provided by financing activities	(73,413		)	183,186			(203,871		)	—			—			(94,098		)
(Decrease) increase in cash and cash equivalents	(81,599		)	63,970			(6,251		)	—			—			(23,880		)
Cash and cash equivalents at beginning of period	81,599			—			6,451			—			—			88,050
Cash and cash equivalents at end of period	$	—		$	63,970		$	200		$	—		$	—		$	64,170

32

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

In the following Management's Discussion and Analysis, we provide information regarding the following areas:

l	General Overview;
l	Results of Operations; and
l	Liquidity and Capital Resources.

General

The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto included elsewhere in this quarterly report. This discussion, as well as various other sections of this quarterly report, contains and refers to statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Such statements relate to our intent, belief or current expectations primarily with respect to our future operating, financial and strategic performance. Any such forward-looking statements are not guarantees of future performance and may involve risks and uncertainties. Actual results may differ from those contained in or implied by the forward-looking statements as a result of various factors, including, but not limited to, risks and uncertainties relating to the need for additional funds to execute our business strategy, our inability to renew one or more of our broadcast licenses, changes in interest rates, our ability to complete any acquisitions pending from time to time, the timing, costs and synergies resulting from the integration of any completed acquisitions, our ability to eliminate certain costs, our ability to manage rapid growth, the popularity of radio as a broadcasting and advertising medium, changing consumer tastes, any material changes from the preliminary to final purchase price allocations in completed acquisitions, the impact of general economic conditions in the United States or in specific markets in which we currently do, or expect to do, business, industry conditions, including existing competition and future competitive technologies, cancellation, disruptions or postponements of advertising schedules in response to national or world events, our ability to generate revenue from new sources, including technology-based initiatives, the impact of regulatory rules or proceedings that may affect our business, or any acquisitions, from time to time, and other risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2013 and subsequently filed Quarterly Reports Forms 10-Q. Many of these risks and uncertainties are beyond our control, and the unexpected occurrence or failure to occur of any such events or matters could significantly alter our actual results of operations or financial condition.

For additional information about certain of the matters discussed and described in the following Management’s Discussion and Analysis of Financial Condition and Results of Operations, including certain defined terms used herein, see the notes to the accompanying unaudited condensed consolidated financial statements included elsewhere in this quarterly report.

Our Business

We combine high-quality local radio programming with iconic, nationally syndicated media, sports and entertainment brands in order to deliver premium choices for listeners, provide substantial reach for advertisers and create opportunities for shareholders. We believe we are well-positioned in the widening digital audio space through a significant stake in the Rdio digital music service, featuring over 30 million songs on-demand in addition to custom playlists and exclusive curated channels. We are also the leading provider of country music and lifestyle content through our NASH brand, which serves country fans through radio programming, NASH magazine, concerts, licensed products and television/video. Our recent acquisition of WestwoodOne gives us additional scale and an iconic radio industry brand to further syndicate our proprietary content and programming rights onto non-owned radio stations, satellite radio, and new online platforms. WestwoodOne also serves as our brand identity to reach national advertisers, complementing hundreds of well-known Cumulus Radio local sales brands.

We generate revenue through monetization of this programming content and other sources across four major product lines. These are broadcast advertising, digital advertising, political advertising, and non-advertising based license fees.

Broadcast advertising revenue.   We generate most of our overall revenue through the sale of commercial advertising time to local, national and network clients across our 460 owned and operated radio stations and approximately 9,000 affiliated radio stations. Local spot advertising is sold by approximately 900 Cumulus employed sales executives across 90 U.S. media markets (including eight of the top ten). National spot advertising for our owned and operated stations is outsourced to Katz Media, which markets itself to advertisers as WestwoodOne Media Sales. Network advertising airing across our owned and operated and affiliated stations is sold by Cumulus employed executives in major regional hubs across the United States under the WestwoodOne Networks brand.

33

Digital advertising revenue.   We also generate revenue from the sale of advertising and promotional opportunities  across our streaming audio network, digital commerce platform, websites and mobile applications. We operate the fourth largest streaming audio advertising network in the United States, including owned and operated internet radio simulcast stations, Rdio.com, and other third party internet companies with whom we have advertising reseller agreements. Our digital commerce platform utilizes couponing and discount daily deals to create promotional opportunities for local and national merchants under our Sweetjack, SweetDeals and Incentrev brands. We also sell banner and other display ads across more than 400 local radio station websites, mobile applications, and ancillary custom client microsites.

Political advertising revenue.  We generate political advertising revenue across all of our broadcast and digital assets, but highlight it as a separate category to distinguish its highly cyclical nature versus core revenue. Political advertising is generally strongest during even-numbered years, especially in the fourth quarter of such years, when most national and state elections are conducted. In addition to candidate advertising revenue, we also receive orders from special interest and advocacy groups.

License Fees & Other.  All other non-advertising based revenue types where the Company participates are aggregated in our License Fee & Other revenue category. This includes cash based fees we receive for content licensing, third party network compensation, proprietary software licensing, subleases and rents, and all other revenue.

Operating Overview

We believe that we have created a leading national audio advertising platform that allows us to leverage and expand upon our strengths, market presence and programming. Specifically we have an extensive radio station portfolio, including a presence in eight of the top 10 markets, and broad diversity in format, listener base, geography, advertiser base and revenue stream, designed to reduce our dependence on any single demographic, region or industry. As the largest pure-play radio broadcaster in the United States, the Company provides exclusive content that is fully distributed through approximately 460 owned and operated stations in 90 U.S. media markets, approximately 9,000 broadcast radio affiliates and numerous digital channels. Our nationwide platform generates premium content distributable through both broadcast and digital platforms, and our scale allows larger, significant investments in the local digital media marketplace enabling us to leverage our local digital platforms and strategies, including our social commerce initiatives, across additional markets. Our websites average over 13.7 million page views from approximately 13.2 million unique users on a monthly basis and stream music to approximately 4.2 million unique users each month. We believe our national platform perspective allows us to optimize our available advertising inventory while providing holistic and comprehensive solutions for our customers.

We further believe that our capital structure provides adequate liquidity and scale for us to operate and grow our current business, as well as pursue and finance potential strategic acquisitions in the future.

Liquidity Considerations

Historically, our principal needs for funds have been for acquisitions, expenses associated with our station, network advertising and corporate operations, capital expenditures, and interest and debt service payments. We believe that our funding needs in the future will be for substantially similar matters.

Our principal sources of funds have primarily been cash flow from operations and borrowings under credit facilities in existence from time to time. Our cash flow from operations is subject to factors such as changes in demand due to shifts in population, station listenership, demographics, audience tastes, and fluctuations in preferred advertising media. In addition, customers may not be able to pay, or may delay payment of, accounts receivable that are owed to us, which risks may be exacerbated in challenging economic periods. In recent periods, management has taken steps to mitigate this risk through heightened collection efforts and enhancements to our credit approval process, although no assurances as to the longer-term success of these efforts can be provided. In addition, we believe that our national platform and extensive station portfolio representing a broad diversity in format, listener base, geography, and advertiser base helps us maintain a more stable revenue stream by reducing our dependence on any single demographic, region or industry. We continually monitor our capital structure and from time to time have evaluated, and expect that we will continue to evaluate future opportunities to obtain, other public or private capital from the divestiture of radio stations or other assets that are not a part of, or do not complement, our strategic operations, as well as the issuance of equity and/or debt securities, in each case subject to market and other conditions in existence at the appropriate time. No assurances can be provided that any source of funds would be available when needed on terms acceptable to the Company, or at all.

In furtherance of our strategy, we have recently undertaken a number of transactions to further strengthen our balance sheet and improve our cash flows. On December 23, 2013, we entered into the Amended and Restated Credit Agreement (the "Credit Agreement"). The Credit Agreement consists of a $2.025 billion term loan (the “Term Loan”) maturing in December 2020 and a $200.0 million revolving credit facility (the "Revolving Credit Facility") maturing in December 2018. Under the

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Revolving Credit Facility, up to $30.0 million of availability may be drawn in the form of letters of credit. Upon entry into the Credit Agreement, we used Term Loan borrowings of $2.025 billion to repay in full all amounts outstanding under the first lien term loan and second lien term loan under our pre-existing credit agreements.

In the event amounts are outstanding under the Revolving Credit Facility or any letters of credit are outstanding that have not been collateralized by cash as of the end of each quarter, the Credit Agreement requires compliance with a consolidated first lien net leverage ratio covenant. The required ratio at September 30, 2014 was 5.75 to 1. The ratio periodically decreases until it reaches 4.00 to 1 on March 31, 2018. As of September 30, 2014, we were in compliance with all of our covenants under the Credit Agreement.

On December 6, 2013, we entered into a 5-year, $50.0 million revolving accounts receivable securitization facility (the “Securitization Facility”) with General Electric Capital Corporation, as a lender, as swing line lender and as administrative agent (together with any other lenders party thereto from time to time, the “Lenders”). In connection with the entry into the Securitization Facility, pursuant to a Receivables Sale and Servicing Agreement, dated as of December 6, 2013 (the “Sale Agreement”), certain subsidiaries of the Company (collectively, the "Originators") may sell and/or contribute their existing and future accounts receivable to a special purpose entity and wholly owned subsidiary of the Company (the “SPV”). The SPV may thereafter make borrowings from the Lenders, which borrowings are secured by those receivables, pursuant to a Receivables Funding and Administration Agreement, dated as of December 6, 2013 (the “Funding Agreement”).

At September 30, 2014, our long-term debt consisted of $1.954 billion outstanding under the Term Loan and $610.0 million in 7.75% Senior Notes.

We have assessed the current and expected business climate, our current and expected needs for funds and our current and expected sources of funds and determined, based on our financial condition as of September 30, 2014, that cash on hand, cash expected to be generated from operating activities and cash expected to be available from various financing sources will be sufficient to satisfy our anticipated financing needs for working capital, capital expenditures, interest and debt service payments, and any repurchases of securities and other debt obligations for at least the next twelve months.

We have significant intangible assets recorded comprised primarily of broadcast licenses and goodwill acquired through acquisitions. We evaluate on an interim basis if events or circumstances indicate that broadcast licenses or goodwill may be impaired. The Company performs its annual impairment testing of broadcast licenses and goodwill during the fourth quarter. This evaluation will encompass a detailed preparation of future projected operating results which will incorporate the consideration of a challenging advertising market being experienced by radio operators in our industry as well as increased macroeconomic volatility in the market that began at the end of the third quarter. Although we did not record any impairment charges during the nine months ended September 30, 2014 we cannot make any assurances that there will not be any impairment charges in any future periods.

Advertising Revenue and Adjusted EBITDA

Our primary source of revenue is the sale of advertising time. Our sales of advertising time are primarily affected by the demand from local, regional and national advertisers which impacts the advertising rates charged by us. Advertising demand and rates are based primarily on the ability to attract audiences in the demographic groups targeted by its advertisers, as measured principally by various ratings agencies on a periodic basis. We endeavor to develop strong listener loyalty and we believe that the diversification of our formats and programs helps to insulate us from the effects of changes in the musical tastes of the public with respect to any particular format as a substantial portion of our revenue comes from non-music format and proprietary content. In addition, we believe that the platform that we own and operate, which has increased diversity in terms of format, listener base, geography, advertiser base and revenue stream as a result of our acquisitions and the development of our strategy to focus on radio stations in larger markets and geographically strategic regional clusters, will further reduce our revenue dependence on any single demographic, region or industry.

We strive to maximize revenue by managing our on-air inventory of advertising time and adjusting prices up or down based on supply and demand. The optimal number of advertisements available for sale depends on the programming format of a particular radio program. Each sales vehicle has a general target level of on-air inventory available for advertising. This target level of advertising inventory may vary at different times of the day but tends to remain stable over time. We seek to broaden our base of advertisers in each of our markets by providing a wide array of audience demographic segments across each cluster of stations, thereby providing each of our potential advertisers with an effective means of reaching a targeted demographic group. In the broadcasting industry, we sometimes utilize trade or barter agreements that exchange advertising time for goods or services such as travel or lodging, instead of for cash. Trade revenue totaled $23.7 million and $18.7 million for the nine months ended September 30, 2014 and 2013, respectively. Our advertising contracts are generally short-term. We generate most

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of our revenue from local and regional advertising, which is sold primarily by a station’s sales staff. Local and regional advertising typically represents a majority of our net revenues.

In addition to local advertising revenues, we monetize our available inventory in both national spot and network sales marketplaces using our national platform. To effectively deliver our network advertising for our customers, we distribute content and programming through third party affiliates in order to achieve a broader national audience. Typically, in exchange for the right to broadcast radio network programming, third party affiliates remit a portion of their advertising time, which is then aggregated into packages focused on specific demographic groups and sold by us to our advertiser clients that want to reach the listeners who comprise those demographic groups on a national basis.

Our advertising revenues vary by quarter throughout the year. As is typical with advertising revenue supported businesses, our first calendar quarter typically produces the lowest revenues of a last twelve month period, as advertising generally declines following the winter holidays. The second and fourth calendar quarters typically produce the highest revenues for the year. We continually evaluate opportunities to increase revenues through new platforms, including technology-based initiatives. As a result of those revenue increasing opportunities through new platforms, accelerated by our acquisition of WestwoodOne, our operating results in any period may be affected by the incurrence of advertising and promotion expenses that typically do not have an effect on revenue generation until future periods, if at all. In addition, as part of this evaluation and our acquisition of WestwoodOne, we also have reorganized and discontinued certain redundant and/or unprofitable content vehicles across our platform which will impact our broadcast revenues in the future.

Adjusted EBITDA is the financial metric utilized by management to analyze the cash flow generated by our business. This measure isolates the amount of income generated by our core operations after the incurrence of corporate, general and administrative expenses. Management also uses this measure to determine the contribution of our core operations, including the corporate resources employed to manage the operations, to the funding of our other operating expenses and to the funding of debt service and acquisitions. In addition, Adjusted EBITDA is a key metric for purposes of calculating and determining our compliance with certain covenants contained in our credit facility.

In deriving this measure, management excludes depreciation, amortization, and stock-based compensation expense, as these do not represent cash payments for activities directly related to our core operations. Management excludes any gain or loss on the exchange or sale of any assets as it does not represent a cash transaction. Management also excludes any gain or loss on derivative instruments as it does not represent a cash transaction nor are they associated with core operations. Expenses relating to acquisitions and restructuring costs are also excluded from the calculation of Adjusted EBITDA as they are not directly related to our core operations. Management excludes any impairment of goodwill and intangible assets as they do not require a cash outlay.

Management believes that Adjusted EBITDA, although not a measure that is calculated in accordance with GAAP, nevertheless is commonly employed by the investment community as a measure for determining the market value of a media company. Management has also observed that Adjusted EBITDA is routinely employed to evaluate and negotiate the potential purchase price for media companies and is a key metric for purposes of calculating and determining compliance with certain covenants in our credit facility. Given the relevance to our overall value, management believes that investors consider the metric to be extremely useful.

Adjusted EBITDA should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating activities or any other measure for determining the Company’s operating performance or liquidity that is calculated in accordance with GAAP.

A quantitative reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, follows in this section.

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Results of Operations

The following selected data from our unaudited condensed consolidated statements of operations and other supplementary data should be referred to while reading the results of operations discussion that follows (dollars in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,						% Change Three Months Ended		% Change Nine Months Ended
	2014			2013			2014			2013
STATEMENT OF OPERATIONS DATA:
Net revenue	$	313,885		$	262,535		$	934,176		$	750,680		19.6	%	24.4	%
Content costs	106,574			65,559			316,868			189,765			62.6	%	67.0	%
Other direct operating expenses	119,864			99,202			353,588			292,576			20.8	%	20.9	%
Depreciation and amortization	29,143			27,614			87,095			82,814			5.5	%	5.2	%
LMA fees	2,021			609			5,226			2,293			231.9	%	127.9	%
Corporate expenses (including stock-based compensation expense)	14,756			11,757			53,215			33,517			25.5	%	58.8	%
Gain on sale of assets or stations	(373		)	(5,198		)	(1,271		)	(3,662		)	(92.8	)%	(65.3	)%
Loss (gain) on derivative instrument	—			172			—			(2,672		)	**		**
Operating income	41,900			62,820			119,455			156,049			(33.3	)%	(23.5	)%
Interest expense	(36,647		)	(45,502		)	(109,380		)	(134,221		)	(19.5	)%	(18.5	)%
Interest income	352			308			1,024			942			14.3	%	8.7	%
Loss on early extinguishment of debt	—			—			—			(4,539		)	**		**
Other income (expense), net	443			(139		)	3,972			(247		)	**		**
Income from continuing operations before income taxes	6,048			17,487			15,071			17,984			(65.4	)%	(16.2	)%
Income tax expense	(3,508		)	(6,995		)	(6,663		)	(19,043		)	(49.8	)%	(65.0	)%
Income (loss) from continuing operations	2,540			10,492			8,408			(1,059		)	(75.8	)%	894.0	%
(Loss) income from discontinued operations, net of taxes	—			(3,455		)	—			26,207			**		**
Net income	$	2,540		$	7,037		$	8,408		$	25,148		(63.9	)%	(66.6	)%
KEY FINANCIAL METRIC:
Adjusted EBITDA	$	79,837		$	89,909		$	239,106		$	246,393		(11.2	)%	(3.0	)%
** Calculation is not meaningful.

Three Months Ended September 30, 2014 Compared to the Three Months Ended September 30, 2013

Net Revenue

Net revenue consists of gross revenue less agency commissions, third party producer revenue shares and other direct costs. Agency commissions are variable as they are based upon a stated percentage of the Company’s gross billings.

Net revenue for the three months ended September 30, 2014 increased $51.4 million, or 19.6%, to $313.9 million, compared to $262.5 million for the three months ended September 30, 2013. The increase resulted from increases of $39.1 million, $7.3 million, $3.1 million and $1.9 million in broadcast advertising, digital advertising, political advertising and license fees and other revenue, respectively. These increases were primarily attributable to the addition of the operations of WestwoodOne. The increases were partially offset by decreases in local spot and national spot revenue. The increase in political advertising revenue was due to additional activity associated with mid-term and gubernatorial elections in the current period.

Content Costs

Content costs consist of all costs related to the licensing, acquisition and development of our programming.

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The following table presents our content costs as a percentage of total net revenue:

	Three Months Ended September 30,
	2014		2013
Content costs	34.0	%	25.0	%

Content costs for the three months ended September 30, 2014 increased $41.0 million, or 62.6%, to $106.6 million, compared to $65.6 million for the three months ended September 30, 2013. This increase was primarily attributable to the addition of the operations of WestwoodOne.

Other Direct Operating Expenses

Other direct operating expenses consist of expenses related to the distribution and monetization of our content across our platform and overhead expenses.

Other direct operating expenses for the three months ended September 30, 2014 increased $20.7 million, or 20.8%, to $119.9 million, compared to $99.2 million for the three months ended September 30, 2013. This increase was primarily attributable to the addition of the operations of WestwoodOne and the LMAs in the Chicago, Dallas and San Jose markets.

Depreciation and Amortization

Depreciation and amortization for the three months ended September 30, 2014 increased $1.5 million, or 5.5%, to $29.1 million, compared to $27.6 million for the three months ended September 30, 2013. This increase was due to a $2.0 million increase in depreciation expense which was primarily attributable to expense related to the assets of WestwoodOne, offset by a $0.5 million decrease in amortization expense on our definite lived intangible assets, which resulted from the accelerated amortization methodology we have applied since acquisition of these assets that is based on the expected pattern in which the underlying assets' economic benefits are consumed.  

Corporate Expenses, Including Stock-based CompensationExpense

Corporate expenses consist primarily of compensation and related costs for our executive, finance, human resources, information technology and legal personnel, and fees for professional services. Professional services are principally comprised of outside legal, audit and consulting services.

Corporate expenses, including stock-based compensation expense, for the three months ended September 30, 2014 increased $3.0 million, or 25.5%, to $14.8 million, compared to $11.8 million for the three months ended September 30, 2013. This increase was primarily due to a $2.1 million increase in stock-based compensation expense partially driven by stock options granted to employees of WestwoodOne and a $0.9 million increase in other overhead costs.

Interest Expense

Total interest expense for the three months ended September 30, 2014 decreased $8.9 million, or 19.5%, to $36.6 million compared to $45.5 million for the three months ended September 30, 2013. Interest expense associated with outstanding debt decreased by $8.2 million to $33.5 million as compared to $41.7 million in the prior year period. This decrease was due to lower average indebtedness outstanding resulting from principal repayments and a lower weighted average cost of debt due to the entry into the Credit Agreement in December 2013.

The following summary details the components of our interest expense (dollars in thousands):

	Three Months Ended September 30,				2014 vs 2013
	2014		2013		$ Change			% Change
7.75% Senior Notes	$	11,819	$	11,819	$	—		—	%
Bank borrowings – term loans and revolving credit facilities	21,651		29,853		(8,202		)	(27.5	)%
Other including debt cost amortization	3,177		3,788		(611		)	(16.1	)%
Change in fair value of interest rate cap	—		42		(42		)	(100.0	)%
Interest expense	$	36,647	$	45,502	$	(8,855	)	(19.5	)%

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Income Taxes

For the three months ended September 30, 2014, the Company recorded income tax expense of $3.5 million on pre-tax income from continuing operations of $6.0 million, resulting in an effective tax rate for the three months ended September 30, 2014 of approximately 58.3%. For the three months ended September 30, 2013, the Company recorded income tax expense of $7.0 million on pre-tax income from continuing operations of $17.5 million, resulting in an effective tax rate for the three months ended September 30, 2013 of approximately 40.0%.

The difference between the effective tax rate and the federal statutory rate of 35.0% for the three months ended September 30, 2014 primarily relates to state and local income taxes and changes in the valuation allowance on certain separate company filing jurisdiction net operating losses. For the three months ended September 30, 2013, the primary differences between the effective tax rate and federal statutory rate of 35.0% relate to state and local income taxes and tax amortization of broadcast licenses and goodwill as well as an allocation of the total tax provision to discontinued operations.

The Company continually reviews the adequacy of the valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC Topic 740. As of September 30, 2014, the Company continues to maintain a partial valuation allowance on certain state net operating loss carryforwards for which the Company does not believe they will be able to meet the more likely than not recognition standard for recovery. As of September 30, 2013, the Company maintained a full valuation allowance on its net deferred tax assets excluding deferred tax liabilities associated with the Company's indefinite lived intangible assets and deferred cancellation of debt income for which no estimated amount of deferred tax assets were available to satisfy. The valuation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company's financial statements or tax returns as well as future profitability.

We believe our annual effective tax rate before discrete items for fiscal year 2014 will be approximately 47.3%. The difference between the annual estimated effective tax rate and the federal statutory rate of 35% primarily relates to the valuation allowance on certain separate company net operating losses incurred in 2014.

Adjusted EBITDA

As a result of the factors described above, on an as reported basis, Adjusted EBITDA for the three months ended September 30, 2014 decreased $10.1 million to $79.8 million from $89.9 million for the three months ended September 30, 2013.

Reconciliation of Non-GAAP Financial Measure

The following table reconciles Adjusted EBITDA to net income (the most directly comparable financial measure calculated and presented in accordance with GAAP) as presented in the accompanying consolidated statements of operations (dollars in thousands):

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	Three Months Ended September 30,						Nine Months Ended September 30,						% Change Three Months Ended		% Change Nine Months Ended
	2014			2013			2014			2013
Net income	$	2,540		$	7,037		$	8,408		$	25,148		(63.9	)%	(66.6	)%
Income tax expense	3,508			6,995			6,663			19,043			(49.8	)%	(65.0	)%
Non-operating expenses, including interest expense	35,852			45,333			104,384			138,065			(20.9	)%	(24.4	)%
LMA fees	2,021			609			5,226			2,293			231.9	%	127.9	%
Depreciation and amortization	29,143			27,614			87,095			82,814			5.5	%	5.2	%
Stock-based compensation expense	4,399			2,259			12,645			7,393			94.7	%	71.0	%
Gain on sale of assets or stations	(373		)	(5,198		)	(1,271		)	(3,662		)	(92.8	)%	(65.3	)%
Loss (gain) on derivative instrument	—			172			—			(2,672		)	**		**
Acquisition-related and restructuring costs	2,773			1,457			15,434			3,652			90.3	%	322.6	%
Franchise and state taxes	(26		)	176			522			526			(114.8	)%	(0.8	)%
Discontinued operations:
Loss (income) from discontinued operations, net of tax	—			3,455			—			(26,207		)	**		**
Adjusted EBITDA	$	79,837		$	89,909		$	239,106		$	246,393		(11.2	)%	(3.0	)%
** Calculation is not meaningful.

Nine Months Ended September 30, 2014 Compared to the Nine Months Ended September 30, 2013

Net Revenue

Net revenue for the nine months ended September 30, 2014 increased $183.5 million, or 24.4%, to $934.2 million, compared to $750.7 million for the nine months ended September 30, 2013. The increase resulted from increases of $147.1 million, $19.5 million, $7.1 million and $9.8 million in broadcast advertising, digital advertising, political advertising and license fees and other revenue, respectively. These increases were primarily attributable to the addition of the operations of WestwoodOne. The increases were partially offset by decreases in local spot and national spot revenue. The increase in political advertising revenue was due to additional activity associated with mid-term and gubernatorial elections in the current period.

Content Costs

The following table presents our content costs as a percentage of total net revenues for the periods presented:

	Nine Months Ended September 30,
	2014		2013
Content costs	33.9	%	25.3	%

Content costs for the nine months ended September 30, 2014 increased $127.1 million, or 67.0%, to $316.9 million, compared to $189.8 million for the nine months ended September 30, 2013. This increase was primarily attributable to the addition of the operations of WestwoodOne. Content costs in the prior period also included credits related to music publishing royalty reductions, which increased the period over period difference.

Other Direct Operating Expenses

Other direct operating expenses for the nine months ended September 30, 2014 increased $61.0 million, or 20.9%, to $353.6 million, compared to $292.6 million for the nine months ended September 30, 2013. This increase was primarily attributable to the addition of expenses related to the operations of WestwoodOne in addition to expenses related to the new LMAs in the Chicago, Dallas and San Jose markets.

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Depreciation and Amortization

Depreciation and amortization for the nine months ended September 30, 2014 increased $4.3 million, or 5.2%, to $87.1 million, compared to $82.8 million for the nine months ended September 30, 2013. This increase was due to a $5.7 million increase in depreciation expense which was primarily attributable to increased expense related to the assets of WestwoodOne, in addition to a $1.4 million decrease in amortization expense on our definite lived intangible assets, which resulted from the accelerated amortization methodology we have applied since acquisition of these assets that is based on the expected pattern in which the underlying assets' economic benefits are consumed.  

Corporate Expenses, Including Stock-based CompensationExpense

Corporate expenses, including stock-based compensation expense, for the nine months ended September 30, 2014 increased $19.7 million, or 58.8%, to $53.2 million, compared to $33.5 million for the nine months ended September 30, 2013. This increase was primarily due to an increase of $11.8 million in acquisition related restructuring expenses and legal costs related to the WestwoodOne acquisition, a $5.2 million increase in stock-based compensation expense partially driven by stock options granted to employees of WestwoodOne and a $2.7 million increase in other overhead costs.

Interest Expense

Total interest expense for the nine months ended September 30, 2014 decreased $24.8 million, or 18.5%, to $109.4 million compared to $134.2 million for the nine months ended September 30, 2013. Interest expense associated with outstanding debt decreased by $24.1 million to $100.4 million as compared to $124.5 million in the prior year period.

The following summary details the components of our interest expense (dollars in thousands):

	Nine Months Ended September 30,				2014 vs 2013
	2014		2013		$ Change			% Change
7.75% Senior Notes	$	35,457	$	35,457	$	—		—	%
Bank borrowings – term loans and revolving credit facilities	64,925		89,067		(24,142		)	(27.1	)%
Other including debt cost amortization	8,991		9,682		(691		)	(7.1	)%
Change in fair value of interest rate cap	7		15		(8		)	(53.3	)%
Interest expense	$	109,380	$	134,221	$	(24,841	)	(18.5	)%

Income Taxes

For the nine months ended September 30, 2014, the Company recorded income tax expense of $6.7 million on pre-tax income from continuing operations of $15.1 million, resulting in an effective tax rate for the nine months ended September 30, 2014 of approximately 44.4%. For the nine months ended September 30, 2013, the Company recorded an income tax expense of $19.0 million on pre-tax income from continuing operations of $18.0 million, resulting in an effective tax rate for the nine months ended September 30, 2013 of approximately 105.6%.

The difference between the effective tax rate and the federal statutory rate of 35.0% for the nine months ended September 30, 2014 primarily relates to state and local income taxes and changes in the valuation allowance on certain separate company filing jurisdiction net operating losses. For the nine months ended September 30, 2013, the primary differences between the effective tax rate and federal statutory rate of 35.0% relate to state and local income taxes, tax amortization of broadcast licenses and an allocation of a tax benefit to discontinued operations.

The Company continually reviews the adequacy of the valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC Topic 740. As of September 30, 2014, the Company continues to maintain a partial valuation allowance on certain state net operating loss carryforwards for which the Company does not believe they will be able to meet the more likely than not recognition standard for recovery. As of September 30, 2013, the Company maintained a full valuation allowance on its net deferred tax assets excluding deferred tax liabilities associated with the Company's indefinite lived intangible assets and deferred cancellation of debt income for which no estimated amount of deferred tax assets were available to satisfy. The valuation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company's financial statements or tax returns as well as future profitability.

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We believe our annual effective tax rate before discrete items for fiscal year 2014 will be approximately 47.3%. The difference between the annual estimated effective tax rate and the federal statutory rate of 35% primarily relates to the valuation allowance on certain separate company net operating losses incurred in 2014.

Adjusted EBITDA

As a result of the factors described above, Adjusted EBITDA for the nine months ended September 30, 2014 decreased $7.3 million to $239.1 million from $246.4 million for the nine months ended September 30, 2013.

Liquidity and Capital Resources

Cash Flows Provided by Operating Activities

	Nine Months Ended September 30,
(Dollars in thousands)	2014		2013
Net cash provided by operating activities	$	98,089	$	127,667

For the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013, net cash provided by operating activities decreased $29.6 million. The decrease was primarily due to a decrease in working capital driven by the timing of payments on our accounts receivable.

Cash Flows Used in Investing Activities

	Nine Months Ended September 30,
(Dollars in thousands)	2014			2013
Net cash used in investing activities	$	(7,383	)	$	(57,449	)

For the nine months ended September 30, 2014, net cash used in investing activities was $7.4 million as compared to $57.4 million for the nine months ended September 30, 2013. This decrease was primarily due to the use of $52.2 million to complete acquisitions during the nine months ended September 30, 2013. Capital expenditures for the nine months ended September 30, 2014 totaled $13.4 million, the majority of which related to one time investments at WestwoodOne. Capital expenditures during the nine months ended September 30, 2013 were $8.4 million.

Cash Flows Used in Financing Activities

	Nine Months Ended September 30,
(Dollars in thousands)	2014			2013
Net cash used in financing activities	$	(96,741	)	$	(94,098	)

For the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013, net cash used in financing activities increased $2.6 million. The increase in cash used in financing activities was primarily attributable to a $7.2 million increase in net repayments on borrowings, partially offset by a $5.9 million decrease in cash related to activity associated with our preferred stock which was retired in the fourth quarter of 2013.  

For additional detail regarding the Company’s material liquidity considerations, see “Liquidity Considerations” above.

42

Item 3.Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes to our market risks from those disclosed in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Annual Report”).

Item 4.Controls and Procedures

We maintain a set of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15(d)-15(e) of the Securities Exchange Act of 1934, the “Exchange Act”) designed to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. Such disclosure controls and procedures are designed to ensure that information required to be disclosed in reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chairman, President and Chief Executive Officer (“CEO”) and Senior Vice President and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosure. Management necessarily applies its judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding management’s control objectives. Our management, including the CEO and CFO, does not expect that our disclosure controls and procedures can prevent all possible errors or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. There are inherent limitations in all control systems, including the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Additionally, controls can be circumvented by the individual acts of one or more persons. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and, while our disclosure controls and procedures are designed to be effective under circumstances where they should reasonably be expected to operate effectively, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Because of the inherent limitations in any control system, misstatements due to possible errors or fraud may occur and not be detected.

At the end of the period covered by this report, an evaluation was carried out under the supervision and with the participation of our management, including our CEO and CFO, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, the CEO and CFO have concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2014.

There were no changes to our internal control over financial reporting during the fiscal quarter ended September 30, 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.Legal Proceedings

We are currently party to, or a defendant in, various claims or lawsuits that are generally incidental to our business. We also expect that from time to time in the future we will be party to, or a defendant in, various claims or lawsuits that are generally incidental to our business. We expect that we will vigorously contest any such claims or lawsuits and believe that the ultimate resolution of any known claim or lawsuit will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Item 1A.Risk Factors

Please refer to Part I, Item 1A, “Risk Factors,” in our 2013 Annual Report for information regarding known material risks that could affect our results of operations, financial condition and liquidity. In addition to these risks, other risks that we presently do not consider material, or other unknown risks, could materially adversely impact our business, financial condition and results of operations in a future period.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

On May 21, 2008, our Board of Directors authorized the purchase, from time to time, of up to $75.0 million of our Class A Common Stock, subject to the terms and limitations obtained in any applicable agreements and compliance with other applicable legal requirements. During the three months ended September 30, 2014, we did not purchase any shares of our Class A Common Stock.

43

Item 6.Exhibits

10.1 —	First Amendment to Employment Agreement with John Dickey dated as of September 4, 2014.
31.1 —	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 —	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 —	Certification of the Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101 —	The following materials from Cumulus Media Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2014 and 2013, (ii) Condensed Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013, (iii) Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2014 and 2013, and (iv) Notes to Condensed Consolidated Financial Statements.

44

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CUMULUS MEDIA INC.
Date: November 10, 2014	By:	/s/ Joseph P. Hannan
		Joseph P. Hannan
		Senior Vice President, Treasurer and Chief Financial Officer

EXHIBIT INDEX

10.1 —	First Amendment to Employment Agreement with John Dickey dated as of September 4, 2014.
31.1 —	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 —	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 —	Certification of the Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101 —	The following materials from Cumulus Media Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2014 and 2013, (ii) Condensed Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013, (iii) Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2014 and 2013, and (iv) Notes to Condensed Consolidated Financial Statements.

45

EX-10.1

Exhibit 10.1

AMENDMENT TO EMPLOYMENT AGREEMENT

This First Amendment to Employment Agreement (the “First Amendment”)is made and entered into and is effective as of September 4, 2014 (the “First Amendment Effective Date”) by and between Cumulus Media Inc. (“Company”) and John Dickey (“Employee”) (collectively the "Parties" and individually a "Party").

WHEREAS, the Parties entered into that certain Employment Agreement dated November 29, 2011 (the “Agreement”);

WHEREAS, the Company has requested an amendment to the Agreement, as described more fully herein, and Employee has agreed to enter into such amendment;

NOW THEREFORE, in consideration of the mutual obligations contained herein, and for other good and valuable consideration, the sufficiency of which the Parties hereby acknowledge, Employee and the Company agree as follows:

A. The first Recital and Sections 3(a) and 3(b) of the Agreement are hereby amended to delete the references to “Executive Vice President and Co-Chief Operating Officer” and to insert the following in lieu thereof: “Executive Vice President of Content and Programming”.

B. Section 3(b) is further amended to insert the following at the end of the section:

Executive’s primary responsibilities will include, without limitation, (a) developing and managing content to be broadcast on Company’s owned and operated radio stations, the Westwood One, Inc. radio network and the Rdio platform; (b) developing and expanding the Rdio initiative and platform; (c) identifying, negotiating and managing the Company’s third party content partnerships; (d) developing and managing the NASH brand across all media platforms, including video and non-broadcast initiatives; (e) responsibility for the management and development of the ratings of Company owned and operated radio stations and network distributed programs; (f) identifying, negotiating and implementing broadcast and non-broadcast initiatives to increase Company revenue, including live events, award shows, concerts and other entertainment-based activities, and (g) responsibility for identifying, negotiating and implementing any other of the Company’s non-traditional radio ("NTR”) initiatives. 

C.As of the First Amendment Effective Date, the term “Agreement” shall mean the original Agreement, as well as this First Amendment thereto.

D.All capitalized terms used, but not defined, herein shall have the meanings ascribed to them in the original Agreement.

E.Except as expressly amended herein, all terms and conditions of the original Agreement remain and shall remain unchanged and unaltered and in full force and effect.

IN WITNESS WHEREOF, Company’s duly authorized representative and Employee have executed this First Amendment, which is effective as of the First Amendment Effective Date.

Company:

Cumulus Media Inc.

By: ___________________

Signature

Printed Name: _____________________

Title: ______________________________

Employee:

By: ________________________________

John Dickey

EX-31.1

Exhibit 31.1

Certification of the Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Lewis W. Dickey, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cumulus Media Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 10, 2014	By:	/s/ Lewis W. Dickey, Jr.
		Lewis W. Dickey, Jr.
		Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of the Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Joseph P. Hannan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cumulus Media Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 10, 2014	By:	/s/ Joseph P. Hannan
		Joseph P. Hannan
		Senior Vice President, Treasurer and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, in connection with the filing of the quarterly report on Form 10-Q of Cumulus Media Inc. (the “Company”) for the three month period ended September 30, 2014, filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, that, to such officer’s knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

/s/ Lewis W. Dickey, Jr.
Name:	Lewis W. Dickey, Jr.
Title:	Chairman, President and Chief Executive Officer
/s/ Joseph P. Hannan
Name:	Joseph P. Hannan
Title:	Senior Vice President, Treasurer and Chief Financial Officer

Date: November 10, 2014

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Changes in Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2012
Goodwill [Roll Forward]
Goodwill	$ 1,586,482	$ 1,525,335
Accumulated impairment losses	(329,741)	(329,741)
Subtotal	1,255,519	1,204,953	1,256,741	1,195,594
Acquisition	0	11,461
Purchase price allocation adjustments	(606)	(1,889)
Disposition	(616)	(213)
Goodwill	1,585,260	1,534,694
Accumulated impairment losses	(329,741)	(329,741)
Total	$ 1,255,519	$ 1,204,953	$ 1,256,741	$ 1,195,594

XML

Income Taxes - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Income tax expense (benefit) on pre-tax income	$ 3,508	$ 6,995	$ 6,663	$ 19,043
Income from continuing operations before income taxes	$ 6,048	$ 17,487	$ 15,071	$ 17,984
Effective income tax rate (percentage)	58.30%	40.00%	44.40%	105.60%
Federal statutory income tax rate (percentage)	35.00%	35.00%	35.00%	35.00%
Annual effective tax rate before discrete items for fiscal year 2014			47.30%

XML

Components of Change in Fair Value (Detail) (Fair Value, Measurements, Recurring, USD $) In Thousands, unless otherwise specified			9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 Contingent Consideration		Sep. 30, 2014 Equity interest in Pulser Media
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value balance at January 1, 2014	$ 10,105	$ 126			$ 104	[1]
Add: Additions to equity interest in Pulser					10,001
Fair value balance at September 30, 2014	10,105	126			10,105	[1]
Fair value balance at January 1, 2014	(181)	(31)	(31)	[2]
Add: Wise Brothers Acquisition			(150)
Fair value balance at September 30, 2014	$ (181)	$ (31)	$ (181)	[2]

[1] On September 13, 2013, the Company and Pulser Media (the parent company of Rdio) ("Pulser"), entered into a five year strategic promotional partnership and sales arrangement (the "Rdio Agreement"). In exchange for $75 million of promotional commitments over five years, Cumulus will receive a 15% equity interest in Pulser, with the opportunity to earn additional equity, see Note 13 "Commitments and Contingencies". The fair value of the equity interest in Pulser was determined using inputs that are supported by little or no market activity (a Level 3 measurement). At September 30, 2014 the fair value of the equity interest in Pulser approximated its cost basis and the Company determined that the investment was not impaired.

[2] The fair value of the contingent consideration was determined using inputs that are supported by little or no market activity (a Level 3 measurement). Contingent consideration represents the fair value of the additional cash consideration potentially payable as part of the WFME Asset Exchange and Wise Brothers Acquisition. See Note 2 “Acquisitions and Dispositions”.

XML

Commitments and Contingencies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	9 Months Ended			3 Months Ended	9 Months Ended	0 Months Ended				0 Months Ended						0 Months Ended		9 Months Ended
	Sep. 30, 2014 Affiliate	Sep. 30, 2014 Exit Plan Contract Termination Accounts Payable and Accrued Expenses	Sep. 30, 2014 Exit Plan Contract Termination Non-current liabilities	Sep. 30, 2014 Exit Plan Contract Termination Corporate Expenses	Sep. 30, 2014 Exit Plan Contract Termination Corporate Expenses	Jan. 02, 2014 Merlin Media LLC	Apr. 25, 2014 Merlin Media LLC Put Option	Jan. 02, 2014 Merlin Media LLC Put Option	Jan. 02, 2014 Merlin Media LLC Put Option Station	Apr. 25, 2014 Merlin Media LLC Call Option	Apr. 25, 2014 Merlin Media LLC Call Option Maximum	Jan. 02, 2014 Merlin Media LLC Call Option Maximum	Jan. 02, 2014 Merlin Media LLC Call Option Minimum	Apr. 25, 2014 Universal Media Access, LLC	Apr. 25, 2014 Universal Media Access, LLC Station	Sep. 13, 2013 Strategic Promotional Partnership and Ad Sales Arrangement	Sep. 13, 2013 Strategic Promotional Partnership and Ad Sales Arrangement	Sep. 30, 2014 Arbitron
Supply Commitment [Line Items]
Industry fee to be credited in equal annual installments	$ 75.0
Industry fee refund for fees previously paid	70.5
Remaining aggregate obligation under the agreements with Arbitron																		136.4
Amount of promotion																75
Promotion period																5 years
Percentage ownership of fully diluted shares of Pulser equity																	15.00%
Number of radio stations	9,000								2						1
Monthly management fees, first year						0.3
Monthly management fees, second year						0.4
Monthly management fees, third year						0.5
Monthly management fees, fourth year						0.6
Amount under option agreement to settle management fees							14.8	71.0			14.8	70.0	50.0
Period after commencement date to settle management fees							2 years	4 years		18 months
Period to exercise option							10 days	10 days
Restructuring costs				0.1	5.2
Current restructuring liabilities		0.4
Noncurrent restructuring liabilities			4.4
Fixed fee under LMA														$ 1.4
Term under LMA														2 years

XML

Financial Assets and Liabilities and Non-Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) In Thousands, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets:	$ 10,105		$ 126
Financial liabilities:	(181)		(31)
Equity interest in Pulser Media
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets:	10,105	[1]	104	[1]
Interest Rate Cap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets:			22	[2]
Contingent Consideration
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial liabilities:	(181)	[3]	(31)	[3]
Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets:	0		22
Significant Other Observable Inputs (Level 2) | Interest Rate Cap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets:			22	[2]
Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets:	10,105		104
Financial liabilities:	(181)		(31)
Significant Unobservable Inputs (Level 3) | Equity interest in Pulser Media
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets:	10,105	[1]	104	[1]
Significant Unobservable Inputs (Level 3) | Contingent Consideration
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial liabilities:	$ (181)	[3]	$ (31)	[3]

[1] On September 13, 2013, the Company and Pulser Media (the parent company of Rdio) ("Pulser"), entered into a five year strategic promotional partnership and sales arrangement (the "Rdio Agreement"). In exchange for $75 million of promotional commitments over five years, Cumulus will receive a 15% equity interest in Pulser, with the opportunity to earn additional equity, see Note 13 "Commitments and Contingencies". The fair value of the equity interest in Pulser was determined using inputs that are supported by little or no market activity (a Level 3 measurement). At September 30, 2014 the fair value of the equity interest in Pulser approximated its cost basis and the Company determined that the investment was not impaired.

[2] Pursuant to the Interest Rate Cap, the Company pays a fixed interest rate on a $71.3 million notional amount of its term loan. The fair value of the Interest Rate Cap is determined based on a discounted cash flow analysis of the expected future cash flows using observable inputs, including interest rates and yield curves. Derivative valuations incorporate adjustments that are necessary to reflect the credit risk.

[3] The fair value of the contingent consideration was determined using inputs that are supported by little or no market activity (a Level 3 measurement). Contingent consideration represents the fair value of the additional cash consideration potentially payable as part of the WFME Asset Exchange and Wise Brothers Acquisition. See Note 2 “Acquisitions and Dispositions”.

XML

Summary of Intangible Assets Acquired (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended	0 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Aug. 01, 2014 Programming content Wise Brother Media Inc	Dec. 12, 2013 Affiliate relationships WestwoodOne Acquisition	Nov. 14, 2013 Advertising relationships Townsquare Transaction
Business Acquisition [Line Items]
Estimated Useful Life in Years			4 years	9 years	5 years
Fair Value	$ 6,066	$ 152,522	$ 5,500	$ 150,900	$ 552

XML

Condensed Consolidating Statements of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Condensed Income Statements, Captions [Line Items]
Net revenues	$ 313,885	$ 262,535	$ 934,176	$ 750,680
Operating expenses:
Content costs	106,574	65,559	316,868	189,765
Other direct operating expenses	119,864	99,202	353,588	292,576
Depreciation and amortization	29,143	27,614	87,095	82,814
LMA fees	2,021	609	5,226	2,293
Corporate expenses (including stock-based compensation expense of $4,399, $2,259, $12,645 and $7,393, respectively)	14,756	11,757	53,215	33,517
Gain on sale of assets or stations	(373)	(5,198)	(1,271)	(3,662)
Loss (gain) on derivative instrument	0	172	0	(2,672)
Total operating expenses	271,985	199,715	814,721	594,631
Operating income	41,900	62,820	119,455	156,049
Non-operating (expense) income:
Interest expense	(36,647)	(45,502)	(109,380)	(134,221)
Interest income	352	308	1,024	942
Loss on early extinguishment of debt	0	0	0	(4,539)
Other income (expense), net	443	(139)	3,972	(247)
Total non-operating expense, net	(35,852)	(45,333)	(104,384)	(138,065)
Income from continuing operations before income taxes	6,048	17,487	15,071	17,984
Income tax expense	(3,508)	(6,995)	(6,663)	(19,043)
Income (loss) from continuing operations	2,540	10,492	8,408	(1,059)
(Loss) income from discontinued operations	0	(3,455)	0	26,207
(Loss) earnings from consolidated subsidiaries	0	0	0	0
Net income	2,540	7,037	8,408	25,148
Cumulus Media Inc. (Parent Guarantor)
Condensed Income Statements, Captions [Line Items]
Net revenues	0	0	0	0
Operating expenses:
Content costs	0	0	0	0
Other direct operating expenses	0	0	0	0
Depreciation and amortization	0	0	0	0
LMA fees	0	0	0	0
Corporate expenses (including stock-based compensation expense of $4,399, $2,259, $12,645 and $7,393, respectively)	0	0	0	0
Gain on sale of assets or stations	0	0	0	0
Loss (gain) on derivative instrument		0		0
Total operating expenses	0	0	0	0
Operating income	0	0	0	0
Non-operating (expense) income:
Interest expense	(2,184)	(2,378)	(7,165)	(8,186)
Interest income	0	0	0	0
Loss on early extinguishment of debt				0
Other income (expense), net	0	0	0	0
Total non-operating expense, net	(2,184)	(2,378)	(7,165)	(8,186)
Income from continuing operations before income taxes	(2,184)	(2,378)	(7,165)	(8,186)
Income tax expense	1,427	0	3,168	0
Income (loss) from continuing operations	(757)	(2,378)	(3,997)	(8,186)
(Loss) income from discontinued operations		0		0
(Loss) earnings from consolidated subsidiaries	3,297	9,415	12,405	33,334
Net income	2,540	7,037	8,408	25,148
Cumulus Media Holdings Inc. (Subsidiary Issuer)
Condensed Income Statements, Captions [Line Items]
Net revenues	125	917	354	917
Operating expenses:
Content costs	0	0	0	0
Other direct operating expenses	0	0	0	0
Depreciation and amortization	428	471	1,346	1,451
LMA fees	0	0	0	0
Corporate expenses (including stock-based compensation expense of $4,399, $2,259, $12,645 and $7,393, respectively)	14,756	11,757	53,215	33,517
Gain on sale of assets or stations	0	0	0	0
Loss (gain) on derivative instrument		0		0
Total operating expenses	15,184	12,228	54,561	34,968
Operating income	(15,059)	(11,311)	(54,207)	(34,051)
Non-operating (expense) income:
Interest expense	(34,416)	(43,124)	(101,999)	(126,035)
Interest income	0	0	0	0
Loss on early extinguishment of debt				(4,539)
Other income (expense), net	0	0	0	0
Total non-operating expense, net	(34,416)	(43,124)	(101,999)	(130,574)
Income from continuing operations before income taxes	(49,475)	(54,435)	(156,206)	(164,625)
Income tax expense	31,750	0	69,064	0
Income (loss) from continuing operations	(17,725)	(54,435)	(87,142)	(164,625)
(Loss) income from discontinued operations		0		0
(Loss) earnings from consolidated subsidiaries	21,022	63,850	99,547	197,959
Net income	3,297	9,415	12,405	33,334
Subsidiary Guarantors
Condensed Income Statements, Captions [Line Items]
Net revenues	313,760	261,618	933,822	749,763
Operating expenses:
Content costs	106,574	65,559	316,868	189,765
Other direct operating expenses	119,455	98,674	352,036	291,035
Depreciation and amortization	28,715	27,143	85,749	81,363
LMA fees	2,021	609	5,226	2,293
Corporate expenses (including stock-based compensation expense of $4,399, $2,259, $12,645 and $7,393, respectively)	0	0	0	0
Gain on sale of assets or stations	(373)	(5,198)	(1,271)	(3,662)
Loss (gain) on derivative instrument		172		(2,672)
Total operating expenses	256,392	186,959	758,608	558,122
Operating income	57,368	74,659	175,214	191,641
Non-operating (expense) income:
Interest expense	0	0	0	0
Interest income	352	308	1,024	942
Loss on early extinguishment of debt				0
Other income (expense), net	443	(139)	3,972	(247)
Total non-operating expense, net	795	169	4,996	695
Income from continuing operations before income taxes	58,163	74,828	180,210	192,336
Income tax expense	(37,008)	49,113	(79,677)	13,276
Income (loss) from continuing operations	21,155	123,941	100,533	205,612
(Loss) income from discontinued operations		(44,094)		17,795
(Loss) earnings from consolidated subsidiaries	(133)	(15,997)	(986)	(25,448)
Net income	21,022	63,850	99,547	197,959
Subsidiary Non-guarantors
Condensed Income Statements, Captions [Line Items]
Net revenues	0	0	0	0
Operating expenses:
Content costs	0	0	0	0
Other direct operating expenses	409	528	1,552	1,541
Depreciation and amortization	0	0	0	0
LMA fees	0	0	0	0
Corporate expenses (including stock-based compensation expense of $4,399, $2,259, $12,645 and $7,393, respectively)	0	0	0	0
Gain on sale of assets or stations	0	0	0	0
Loss (gain) on derivative instrument		0		0
Total operating expenses	409	528	1,552	1,541
Operating income	(409)	(528)	(1,552)	(1,541)
Non-operating (expense) income:
Interest expense	(47)	0	(216)	0
Interest income	0	0	0	0
Loss on early extinguishment of debt				0
Other income (expense), net	0	0	0	0
Total non-operating expense, net	(47)	0	(216)	0
Income from continuing operations before income taxes	(456)	(528)	(1,768)	(1,541)
Income tax expense	323	(56,108)	782	(32,319)
Income (loss) from continuing operations	(133)	(56,636)	(986)	(33,860)
(Loss) income from discontinued operations		40,639		8,412
(Loss) earnings from consolidated subsidiaries	0	0	0	0
Net income	(133)	(15,997)	(986)	(25,448)
Eliminations
Condensed Income Statements, Captions [Line Items]
Net revenues	0	0	0	0
Operating expenses:
Content costs	0	0	0	0
Other direct operating expenses	0	0	0	0
Depreciation and amortization	0	0	0	0
LMA fees	0	0	0	0
Corporate expenses (including stock-based compensation expense of $4,399, $2,259, $12,645 and $7,393, respectively)	0	0	0	0
Gain on sale of assets or stations	0	0	0	0
Loss (gain) on derivative instrument		0		0
Total operating expenses	0	0	0	0
Operating income	0	0	0	0
Non-operating (expense) income:
Interest expense	0	0	0	0
Interest income	0	0	0	0
Loss on early extinguishment of debt				0
Other income (expense), net	0	0	0	0
Total non-operating expense, net	0	0	0	0
Income from continuing operations before income taxes	0	0	0	0
Income tax expense		0		0
Income (loss) from continuing operations	0	0	0	0
(Loss) income from discontinued operations		0		0
(Loss) earnings from consolidated subsidiaries	(24,186)	(57,268)	(110,966)	(205,845)
Net income	$ (24,186)	$ (57,268)	$ (110,966)	$ (205,845)

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Location and Fair Value Amounts of Derivatives in Consolidated Balance Sheets

The location and fair value of derivatives in the unaudited condensed consolidated balance sheets are shown in the following table (dollars in thousands):

		Fair Value
Derivative Instruments	Balance Sheet Location	September 30, 2014		December 31, 2013
Derivatives not designated as hedging instruments:
Interest Rate Cap	Other assets	$	—	$	22
	Total	$	—	$	22

Location and Effect of Derivatives in Statements Of Operations

The location and effect of derivatives in the unaudited condensed consolidated statements of operations are shown in the following table (dollars in thousands):

		Recognized as Derivatives
		For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Derivative Instruments	Statement of Operations Location	2014		2013		2014		2013
Interest Rate Cap	Interest expense	$	—	$	42	$	21	$	15
Green Bay Option	Loss (gain) on derivative instrument	—		172		—		(2,672		)
	Total	$	—	$	214	$	21	$	(2,657	)

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Gross Amounts and Fair Value of Debt (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Term loan
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Carrying value	$ 1,953,875	$ 2,025,000
Term loan | Significant Other Observable Inputs (Level 2)
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair value - Level 2	1,914,798	2,025,000
Second Lien Term Loan
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Carrying value	0	25,000
Second Lien Term Loan | Significant Other Observable Inputs (Level 2)
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair value - Level 2	0	25,000
7.75% senior notes
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Carrying value	610,000	610,000
7.75% senior notes | Significant Other Observable Inputs (Level 2)
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair value - Level 2	$ 620,675	$ 641,598

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Location and Fair Values of Derivatives in Condensed Consolidated Statements of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Expense (Income) Recognized on Derivatives	$ 0	$ 214	$ 21	$ (2,657)
Interest Rate Cap | Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Expense (Income) Recognized on Derivatives	0	42	21	15
Green Bay Option | Loss (gain) on derivative instrument
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Expense (Income) Recognized on Derivatives	$ 0	$ 172	$ 0	$ (2,672)

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Restricted Cash - Additional Information (Detail) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Cash and Cash Equivalents [Abstract]
Restricted cash	$ 10,346,000	$ 6,146,000
Restricted cash amount related to securing maximum exposure generated by automated clearinghouse transactions	600,000	600,000
Cash reserve from acquisition	$ 9,700,000	$ 5,500,000

XML

Stock-Based Compensation Expense - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended		0 Months Ended	9 Months Ended	0 Months Ended	9 Months Ended	0 Months Ended	9 Months Ended	0 Months Ended	9 Months Ended	0 Months Ended	9 Months Ended	3 Months Ended		9 Months Ended		0 Months Ended				3 Months Ended		9 Months Ended				0 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 27, 2012 2011 Equity Incentive Plan Installment	Sep. 30, 2014 2011 Equity Incentive Plan Installment	Dec. 27, 2012 2011 Equity Incentive Plan Share-based Compensation Award, Tranche One Installment	Sep. 30, 2014 2011 Equity Incentive Plan Share-based Compensation Award, Tranche One Installment	Dec. 27, 2012 2011 Equity Incentive Plan Share-based Compensation Award, Tranche Two Installment	Sep. 30, 2014 2011 Equity Incentive Plan Share-based Compensation Award, Tranche Two Installment	Dec. 27, 2012 2011 Equity Incentive Plan First And Second Anniversaries	Sep. 30, 2014 2011 Equity Incentive Plan First And Second Anniversaries	Dec. 27, 2012 2011 Equity Incentive Plan Third And Fourth Anniversaries	Sep. 30, 2014 2011 Equity Incentive Plan Third And Fourth Anniversaries	Sep. 30, 2014 Equity Awards	Sep. 30, 2013 Equity Awards	Sep. 30, 2014 Equity Awards	Sep. 30, 2013 Equity Awards	Feb. 16, 2012 Equity Incentive Plans	Feb. 16, 2012 Equity Incentive Plans Share-based Compensation Award, Tranche One	Feb. 16, 2012 Equity Incentive Plans Share-based Compensation Award, Tranche Two	Feb. 16, 2012 Equity Incentive Plans Share-based Compensation Award, Tranche Three	Sep. 30, 2014 Restricted Stock	Sep. 30, 2013 Restricted Stock	Sep. 30, 2014 Restricted Stock	Sep. 30, 2013 Restricted Stock	Sep. 30, 2014 Restricted Stock Minimum	Sep. 30, 2014 Restricted Stock Maximum	May 22, 2014 Non Employee Directors	May 09, 2013 Non Employee Directors	Feb. 16, 2012 Non Employee Directors	May 22, 2014 Non Employee Directors Restricted Class A Common Stock	May 09, 2013 Non Employee Directors Restricted Class A Common Stock	Feb. 16, 2012 Non Employee Directors Restricted Class A Common Stock
Share Based Compensation [Line Items]
Shares of time-vesting restricted Class A common stock																																93,312	168,540	161,724
Grant date fair value																			$ 3,300,000				$ 1,000,000		$ 2,700,000				$ 600,000	$ 600,000	$ 600,000
Cliff vesting term																																1 year	1 year	1 year
Time-vesting stock options to purchase																			1,400,000.0
Exercise price																			$ 4.34
Percentage of vesting stock based compensation																				30.00%	20.00%	20.00%
Number of shares of Class A common stock					800,000.0
Grant date fair value					1,100,000
Exercise price per share					$ 4.34																						$ 5.56	$ 7.74
Number of vesting period anniversaries					4	4	2	2	2	2
Award vesting percentage											30.00%	30.00%	20.00%	20.00%
Number of stock options granted																							300,000.0		700,000.0
Vesting stock based compensation related to awards	4,399,000	2,259,000	12,645,000	7,393,000											4,400,000	2,300,000	12,600,000	7,400,000
Unrecognized stock-based compensation expense															30,400,000		30,400,000
Weighted average remaining life for recognition of unrecognized compensation expense																	2 years 5 months 1 day
Total Fair value of restricted stock awards vested																							$ 0	$ 0	$ 2,100,000	$ 1,600,000
Stock options exercised			1,300,000	100,000

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Condensed Consolidating Statements of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:
Net income	$ 8,408	$ 25,148
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	87,095	86,809
Amortization of debt issuance costs/discounts	7,029	7,515
Provision for doubtful accounts	2,468	2,002
Gain on sale of assets or stations	(1,271)	(3,556)
Loss on early extinguishment of debt	0	4,539
Fair value adjustment of derivative instruments	21	(2,657)
Deferred income taxes	6,663	9,659
Stock-based compensation expense	12,645	7,393
(Earnings) loss from consolidated subsidiaries	0	0
Changes in assets and liabilities	(24,969)	(9,185)
Net cash provided by operating activities	98,089	127,667
Cash flows from investing activities:
Proceeds from sale of assets or stations	15,718	6,492
Restricted cash	(4,200)	2,192
Initial payment of Green Bay Option	0	(5,000)
Acquisition less cash acquired	(5,500)	(52,685)
Capital expenditures	(13,401)	(8,448)
Net cash used in investing activities	(7,383)	(57,449)
Cash flows from financing activities:
Intercompany transactions, net	0	0
Repayment of borrowings under term loans and revolving credit facilities	(106,125)	(88,931)
Proceeds from borrowings under term loans and revolving credit facilities	10,000	0
Tax withholding payments on behalf of employees	(1,320)	(337)
Redemption of Series A preferred stock	0	(73,150)
Preferred stock dividends	0	(9,395)
Proceeds from issuance of Series B preferred stock	0	77,241
Proceeds from exercise of warrants	106	64
Proceeds from exercise of options	619	614
Deferred financing costs	(21)	(204)
Net cash used in financing activities	(96,741)	(94,098)
Decrease in cash and cash equivalents	(6,035)	(23,880)
Cash and cash equivalents at beginning of period	32,792	88,050
Cash and cash equivalents at end of period	26,757	64,170
Cumulus Media Inc. (Parent Guarantor)
Cash flows from operating activities:
Net income	8,408	25,148
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	0	0
Amortization of debt issuance costs/discounts	0	0
Provision for doubtful accounts	0	0
Gain on sale of assets or stations	0	0
Loss on early extinguishment of debt		0
Fair value adjustment of derivative instruments	0	0
Deferred income taxes	(3,168)	0
Stock-based compensation expense	0	0
(Earnings) loss from consolidated subsidiaries	(12,405)	(33,334)
Changes in assets and liabilities	0	0
Net cash provided by operating activities	(7,165)	(8,186)
Cash flows from investing activities:
Proceeds from sale of assets or stations	0	0
Restricted cash	0	0
Initial payment of Green Bay Option		0
Acquisition less cash acquired	0	0
Capital expenditures	0	0
Net cash used in investing activities	0	0
Cash flows from financing activities:
Intercompany transactions, net	(5,364)	(68,787)
Repayment of borrowings under term loans and revolving credit facilities	0	0
Proceeds from borrowings under term loans and revolving credit facilities	0
Tax withholding payments on behalf of employees	0	0
Redemption of Series A preferred stock		(73,150)
Preferred stock dividends		(9,395)
Proceeds from issuance of Series B preferred stock		77,241
Proceeds from exercise of warrants	106	64
Proceeds from exercise of options	619	614
Deferred financing costs	0	0
Net cash used in financing activities	(4,639)	(73,413)
Decrease in cash and cash equivalents	(11,804)	(81,599)
Cash and cash equivalents at beginning of period	11,804	81,599
Cash and cash equivalents at end of period	0	0
Cumulus Media Holdings Inc. (Subsidiary Issuer)
Cash flows from operating activities:
Net income	12,405	33,334
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	1,346	1,451
Amortization of debt issuance costs/discounts	6,886	7,515
Provision for doubtful accounts	0	0
Gain on sale of assets or stations	0	0
Loss on early extinguishment of debt		4,539
Fair value adjustment of derivative instruments	21	(27)
Deferred income taxes	(69,064)	0
Stock-based compensation expense	12,645	7,393
(Earnings) loss from consolidated subsidiaries	(99,547)	(197,959)
Changes in assets and liabilities	258,974	22,787
Net cash provided by operating activities	123,666	(120,967)
Cash flows from investing activities:
Proceeds from sale of assets or stations	0	0
Restricted cash	(4,200)	2,192
Initial payment of Green Bay Option		0
Acquisition less cash acquired	0	0
Capital expenditures	(134)	(441)
Net cash used in investing activities	(4,334)	1,751
Cash flows from financing activities:
Intercompany transactions, net	(41,365)	272,658
Repayment of borrowings under term loans and revolving credit facilities	(71,125)	(88,931)
Proceeds from borrowings under term loans and revolving credit facilities	0
Tax withholding payments on behalf of employees	(1,320)	(337)
Redemption of Series A preferred stock		0
Preferred stock dividends		0
Proceeds from issuance of Series B preferred stock		0
Proceeds from exercise of warrants	0	0
Proceeds from exercise of options	0	0
Deferred financing costs	(21)	(204)
Net cash used in financing activities	(113,831)	183,186
Decrease in cash and cash equivalents	5,501	63,970
Cash and cash equivalents at beginning of period	20,988	0
Cash and cash equivalents at end of period	26,489	63,970
Subsidiary Guarantors
Cash flows from operating activities:
Net income	99,547	197,959
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	85,749	85,358
Amortization of debt issuance costs/discounts	0	0
Provision for doubtful accounts	2,468	2,002
Gain on sale of assets or stations	(1,271)	(3,556)
Loss on early extinguishment of debt		0
Fair value adjustment of derivative instruments	0	(2,630)
Deferred income taxes	79,677	(14,249)
Stock-based compensation expense	0	0
(Earnings) loss from consolidated subsidiaries	986	25,448
Changes in assets and liabilities	(275,568)	(33,512)
Net cash provided by operating activities	(8,412)	256,820
Cash flows from investing activities:
Proceeds from sale of assets or stations	15,718	6,492
Restricted cash	0	0
Initial payment of Green Bay Option		(5,000)
Acquisition less cash acquired	(5,500)	(52,685)
Capital expenditures	(13,267)	(8,007)
Net cash used in investing activities	(3,049)	(59,200)
Cash flows from financing activities:
Intercompany transactions, net	11,729	(203,871)
Repayment of borrowings under term loans and revolving credit facilities	0	0
Proceeds from borrowings under term loans and revolving credit facilities	0
Tax withholding payments on behalf of employees	0	0
Redemption of Series A preferred stock		0
Preferred stock dividends		0
Proceeds from issuance of Series B preferred stock		0
Proceeds from exercise of warrants	0	0
Proceeds from exercise of options	0	0
Deferred financing costs	0	0
Net cash used in financing activities	11,729	(203,871)
Decrease in cash and cash equivalents	268	(6,251)
Cash and cash equivalents at beginning of period	0	6,451
Cash and cash equivalents at end of period	268	200
Subsidiary Non-guarantors
Cash flows from operating activities:
Net income	(986)	(25,448)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	0	0
Amortization of debt issuance costs/discounts	143	0
Provision for doubtful accounts	0	0
Gain on sale of assets or stations	0	0
Loss on early extinguishment of debt		0
Fair value adjustment of derivative instruments	0	0
Deferred income taxes	(782)	23,908
Stock-based compensation expense	0	0
(Earnings) loss from consolidated subsidiaries	0	0
Changes in assets and liabilities	(8,375)	1,540
Net cash provided by operating activities	(10,000)	0
Cash flows from investing activities:
Proceeds from sale of assets or stations	0	0
Restricted cash	0	0
Initial payment of Green Bay Option		0
Acquisition less cash acquired	0	0
Capital expenditures	0	0
Net cash used in investing activities	0	0
Cash flows from financing activities:
Intercompany transactions, net	35,000	0
Repayment of borrowings under term loans and revolving credit facilities	(35,000)	0
Proceeds from borrowings under term loans and revolving credit facilities	10,000
Tax withholding payments on behalf of employees	0	0
Redemption of Series A preferred stock		0
Preferred stock dividends		0
Proceeds from issuance of Series B preferred stock		0
Proceeds from exercise of warrants	0	0
Proceeds from exercise of options	0	0
Deferred financing costs	0	0
Net cash used in financing activities	10,000	0
Decrease in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0
Cash and cash equivalents at end of period	0	0
Eliminations
Cash flows from operating activities:
Net income	(110,966)	(205,845)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	0	0
Amortization of debt issuance costs/discounts	0	0
Provision for doubtful accounts	0	0
Gain on sale of assets or stations	0	0
Loss on early extinguishment of debt		0
Fair value adjustment of derivative instruments	0	0
Deferred income taxes	0	0
Stock-based compensation expense	0	0
(Earnings) loss from consolidated subsidiaries	110,966	205,845
Changes in assets and liabilities	0	0
Net cash provided by operating activities	0	0
Cash flows from investing activities:
Proceeds from sale of assets or stations	0	0
Restricted cash	0	0
Initial payment of Green Bay Option		0
Acquisition less cash acquired	0	0
Capital expenditures	0	0
Net cash used in investing activities	0	0
Cash flows from financing activities:
Intercompany transactions, net	0	0
Repayment of borrowings under term loans and revolving credit facilities	0	0
Proceeds from borrowings under term loans and revolving credit facilities	0
Tax withholding payments on behalf of employees	0	0
Redemption of Series A preferred stock		0
Preferred stock dividends		0
Proceeds from issuance of Series B preferred stock		0
Proceeds from exercise of warrants	0	0
Proceeds from exercise of options	0	0
Deferred financing costs	0	0
Net cash used in financing activities	0	0
Decrease in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0
Cash and cash equivalents at end of period	$ 0	$ 0

XML

Financial Assets and Liabilities and Non-Financial Assets and Liabilities Measured at Fair Value Additional Information (Detail) (USD $) In Millions, unless otherwise specified	0 Months Ended
	Sep. 13, 2013 Strategic Promotional Partnership and Ad Sales Arrangement	Sep. 13, 2013 Strategic Promotional Partnership and Ad Sales Arrangement	Dec. 31, 2013 Interest Rate Cap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Payment towards notional amount of term loans			$ 71.3
Promotion period	5 years
Amount of promotion	$ 75
Percentage ownership of fully diluted shares of Pulser equity		15.00%

XML

Discontinued Operations

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On November 14, 2013, the Company completed the Townsquare Transaction. The results of operations associated with the stations disposed of in that transaction have been separately reported within discontinued operations, net of the related tax impact, in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2013.

For the three and nine months ended September 30, 2013, (loss) income from discontinued operations was as follows (dollars in thousands):

	Three Months Ended   September 30,			Nine Months Ended   September 30,
	2013
Discontinued operations:
Net revenue	$	18,538		$	52,940
Income from discontinued operations before taxes	7,914			21,252
Income tax (expense) benefit	(11,369		)	4,955
(Loss) income from discontinued operations	(3,455		)	26,207

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Long term debt (Detail) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
7.75% senior notes	$ 610,000	$ 610,000
Less: Current portion of long-term debt	0	(5,937)
Long-term debt, net	2,533,987	2,620,956
Term Loan and Securitization Facility:
Debt Instrument [Line Items]
Less: term loan discount	(29,888)	(33,107)
Total Term Loan and Securitization Facility	1,923,987	2,016,893
7.75% senior notes
Debt Instrument [Line Items]
7.75% senior notes	610,000	610,000
Term loan | Term Loan and Securitization Facility:
Debt Instrument [Line Items]
Term Loan and Securitization Facility:	1,953,875	2,025,000
Securitization facility | Term Loan and Securitization Facility:
Debt Instrument [Line Items]
Term Loan and Securitization Facility:	$ 0	$ 25,000

XML

Supplemental Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidated Statements of Operations

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended September 30, 2014

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Net revenue	$	—		$	125		$	313,760		$	—		$	—		$	313,885
Operating expenses:
Content costs	—			—			106,574			—			—			106,574
Other direct operating expenses	—			—			119,455			409			—			119,864
Depreciation and amortization	—			428			28,715			—			—			29,143
LMA fees	—			—			2,021			—			—			2,021
Corporate expenses (including stock-based compensation expense of $4,399)	—			14,756			—			—			—			14,756
Gain on sale of assets or stations	—			—			(373		)	—			—			(373		)
Total operating expenses	—			15,184			256,392			409			—			271,985
Operating (loss) income	—			(15,059		)	57,368			(409		)	—			41,900
Non-operating (expense) income:
Interest expense	(2,184		)	(34,416		)	—			(47		)	—			(36,647		)
Interest income	—			—			352			—			—			352
Other income, net	—			—			443			—			—			443
Total non-operating (expense) income, net	(2,184		)	(34,416		)	795			(47		)	—			(35,852		)
(Loss) income before income taxes	(2,184		)	(49,475		)	58,163			(456		)	—			6,048
Income tax benefit (expense)	1,427			31,750			(37,008		)	323						(3,508		)
(Loss) income from continuing operations	(757		)	(17,725		)	21,155			(133		)	—			2,540
Earnings (loss) from consolidated subsidiaries	3,297			21,022			(133		)	—			(24,186		)	—
Net income (loss)	$	2,540		$	3,297		$	21,022		$	(133	)	$	(24,186	)	$	2,540

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine Months Ended September 30, 2014

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Net revenue	$	—		$	354		$	933,822		$	—		$	—		$	934,176
Operating expenses:
Content costs	—			—			316,868			—			—			316,868
Other direct operating expenses	—			—			352,036			1,552			—			353,588
Depreciation and amortization	—			1,346			85,749			—			—			87,095
LMA fees	—			—			5,226			—			—			5,226
Corporate expenses (including stock-based compensation expense of $12,645)	—			53,215			—			—			—			53,215
Gain on sale of assets or stations	—			—			(1,271		)	—			—			(1,271		)
Total operating expenses	—			54,561			758,608			1,552			—			814,721
Operating (loss) income	—			(54,207		)	175,214			(1,552		)	—			119,455
Non-operating (expense) income:
Interest expense	(7,165		)	(101,999		)	—			(216		)	—			(109,380		)
Interest income	—			—			1,024			—			—			1,024
Other income, net	—			—			3,972			—			—			3,972
Total non-operating (expense) income, net	(7,165		)	(101,999		)	4,996			(216		)	—			(104,384		)
(Loss) income before income taxes	(7,165		)	(156,206		)	180,210			(1,768		)	—			15,071
Income tax benefit (expense)	3,168			69,064			(79,677		)	782						(6,663		)
(Loss) income from continuing operations	(3,997		)	(87,142		)	100,533			(986		)	—			8,408
Earnings (loss) from consolidated subsidiaries	12,405			99,547			(986		)	—			(110,966		)	—
Net income (loss)	$	8,408		$	12,405		$	99,547		$	(986	)	$	(110,966	)	$	8,408

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended September 30, 2013

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Net revenue	$	—		$	917		$	261,618		$	—		$	—		$	262,535
Operating expenses:
Content costs	—			—			65,559			—			—			65,559
Other direct operating expenses	—			—			98,674			528			—			99,202
Depreciation and amortization	—			471			27,143			—			—			27,614
LMA fees	—			—			609			—			—			609
Corporate expenses (including stock-based compensation expense of $2,259)	—			11,757			—			—			—			11,757
Loss on sale of assets or stations	—			—			(5,198		)	—			—			(5,198		)
Gain on derivative instrument	—			—			172			—			—			172
Total operating expenses	—			12,228			186,959			528			—			199,715
Operating (loss) income	—			(11,311		)	74,659			(528		)	—			62,820
Non-operating (expense) income:
Interest expense	(2,378		)	(43,124		)	—			—			—			(45,502		)
Interest income	—			—			308			—			—			308
Other expense, net	—			—			(139		)	—			—			(139		)
Total non-operating (expense) income, net	(2,378		)	(43,124		)	169			—			—			(45,333		)
(Loss) income before income taxes	(2,378		)	(54,435		)	74,828			(528		)	—			17,487
Income tax benefit (expense)	—			—			49,113			(56,108		)	—			(6,995		)
(Loss) income from continuing operations	(2,378		)	(54,435		)	123,941			(56,636		)	—			10,492
(Loss) income from discontinued operations, net of taxes	—			—			(44,094		)	40,639			—			(3,455		)
Earnings (loss) from consolidated subsidiaries	9,415			63,850			(15,997		)	—			(57,268		)	—
Net income (loss)	$	7,037		$	9,415		$	63,850		$	(15,997	)	$	(57,268	)	$	7,037

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine Months Ended September 30, 2013

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Net revenue	$	—		$	917		$	749,763		$	—		$	—		$	750,680
Operating expenses:
Content costs	—			—			189,765			—			—			189,765
Other direct operating expenses	—			—			291,035			1,541			—			292,576
Depreciation and amortization	—			1,451			81,363			—			—			82,814
LMA fees	—			—			2,293			—			—			2,293
Corporate expenses (including stock-based compensation expense of $7,393)	—			33,517			—			—			—			33,517
Loss on sale of assets or stations	—			—			(3,662		)	—			—			(3,662		)
Gain on derivative instrument	—			—			(2,672		)	—			—			(2,672		)
Total operating expenses	—			34,968			558,122			1,541			—			594,631
Operating (loss) income	—			(34,051		)	191,641			(1,541		)	—			156,049
Non-operating (expense) income:
Interest expense	(8,186		)	(126,035		)	—			—			—			(134,221		)
Interest income	—			—			942			—			—			942
Loss on early extinguishment of debt	—			(4,539		)	—			—			—			(4,539		)
Other expense, net	—			—			(247		)	—			—			(247		)
Total non-operating (expense) income, net	(8,186		)	(130,574		)	695			—			—			(138,065		)
(Loss) income before income taxes	(8,186		)	(164,625		)	192,336			(1,541		)	—			17,984
Income tax benefit (expense)	—			—			13,276			(32,319		)	—			(19,043		)
(Loss) income from continuing operations	(8,186		)	(164,625		)	205,612			(33,860		)	—			(1,059		)
Income from discontinued operations, net of taxes	—			—			17,795			8,412			—			26,207
Earnings (loss) from consolidated subsidiaries	33,334			197,959			(25,448		)	—			(205,845		)	—
Net income (loss)	$	25,148		$	33,334		$	197,959		$	(25,448	)	$	(205,845	)	$	25,148

Condensed Consolidated Balance Sheets

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2014

(Dollars in thousands, except for share and per share data)

(Unaudited)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary  Issuer)		Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	26,489	$	268		$	—		$	—		$	26,757
Restricted cash	—			10,346		—			—			—			10,346
Accounts receivable, less allowance for doubtful accounts of $5,043	—			—		—			239,578			—			239,578
Trade receivable	—			—		3,733			—			—			3,733
Asset held for sale				—		15,007			—			—			15,007
Prepaid expenses and other current assets	—			24,820		22,203			—			—			47,023
Total current assets	—			61,655		41,211			239,578			—			342,444
Property and equipment, net	—			2,060		222,660			—			—			224,720
Broadcast licenses	—			—		—			1,596,715			—			1,596,715
Other intangible assets, net	—			—		261,405			—			—			261,405
Goodwill	—			—		1,255,519			—			—			1,255,519
Investment in consolidated subsidiaries	616,828			4,160,697		1,121,176			—			(5,898,701		)	—
Intercompany receivables, net	—			84,391		1,399,949			—			(1,484,340		)	—
Other assets	—			44,502		20,559			791			—			65,852
Total assets	$	616,828		$	4,353,305	$	4,322,479		$	1,837,084		$	(7,383,041	)	$	3,746,655
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	—		$	31,689	$	96,197		$	—		$	—		$	127,886
Trade payable	—			—		4,259			—			—			4,259
Total current liabilities	—			31,689		100,456			—			—			132,145
Long-term debt, excluding 7.75% Senior Notes	—			1,923,987		—			—			—			1,923,987
7.75% Senior Notes	—			610,000		—			—			—			610,000
Other liabilities	—			10,430		61,326			—			—			71,756
Intercompany payables, net	83,600			1,160,371		—			240,369			(1,484,340		)	—
Deferred income taxes	—			—		—			475,539			—			475,539
Total liabilities	83,600			3,736,477		161,782			715,908			(1,484,340		)	3,213,427
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share; 750,000,000 shares authorized; 254,149,893 shares issued and 231,555,276 shares outstanding	2,541			—		—			—			—			2,541
Class C common stock, par value $0.01 per share; 644,871 shares authorized, issued and outstanding	6			—		—			—			—			6
Treasury stock, at cost, 22,594,617 shares	(231,517		)	—		—			—			—			(231,517		)
Additional paid-in-capital	1,595,910			238,672		4,219,656			2,095,935			(6,554,263		)	1,595,910
Accumulated (deficit) equity	(833,712		)	378,156		(58,959		)	(974,759		)	655,562			(833,712		)
Total stockholders’ equity (deficit)	533,228			616,828		4,160,697			1,121,176			(5,898,701		)	533,228
Total liabilities and stockholders’ equity (deficit)	$	616,828		$	4,353,305	$	4,322,479		$	1,837,084		$	(7,383,041	)	$	3,746,655

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2013

(Dollars in thousands, except for share and per share data)

(Unaudited)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)		Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Assets
Current assets:
Cash and cash equivalents	$	11,804		$	20,988	$	—		$	—		$	—		$	32,792
Restricted cash	—			6,146		—			—			—			6,146
Accounts receivable, less allowance for doubtful accounts of $5,306	—			—		—			264,805			—			264,805
Trade receivable	—			—		4,419			—			—			4,419
Prepaid expenses and other current assets	—			5,948		62,945			—			—			68,893
Total current assets	11,804			33,082		67,364			264,805			—			377,055
Property and equipment, net	—			3,272		251,430			—			—			254,702
Broadcast licenses	—			—		—			1,596,337			—			1,596,337
Other intangible assets, net	—			—		315,490			—			—			315,490
Goodwill	—			—		1,256,741			—			—			1,256,741
Investment in consolidated subsidiaries	589,163			3,824,690		1,118,952			—			(5,532,805		)	—
Intercompany receivables, net	—			88,227		1,011,218			24,090			(1,123,535		)	—
Other assets	—			46,774		22,440			896			—			70,110
Total assets	$	600,967		$	3,996,045	$	4,043,635		$	1,886,128		$	(6,656,340	)	$	3,870,435
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	—		$	24,966	$	121,521		$	50		$	—		$	146,537
Trade payable	—			—		3,846			—			—			3,846
Current portion of long-term debt	—			5,937		—			—			—			5,937
Total current liabilities	—			30,903		125,367			50			—			156,320
Long-term debt, excluding 7.75% Senior Notes	—			1,985,956		—			—			—			1,985,956
7.75% Senior Notes	—			610,000		—			—			—			610,000
Secured loan	—			—		—			25,000			—			25,000
Other liabilities	—			10,430		69,483			—			—			79,913
Intercompany payables, net	88,227			769,593		—			265,715			(1,123,535		)	—
Deferred income taxes	—			—		24,095			476,411			—			500,506
Total liabilities	88,227			3,406,882		218,945			767,176			(1,123,535		)	3,357,695
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share; 750,000,000 shares authorized; 222,399,019 shares issued and 198,193,819 shares outstanding	2,223			—		—			—			—			2,223
Class B common stock, par value $0.01 per share; 600,000,000 shares authorized; 15,424,944 shares issued and outstanding	154			—		—			—			—			154
Class C common stock, par value $0.01 per share; 644,871 shares authorized, issued and outstanding	6			—		—			—			—			6
Treasury stock, at cost, 24,205,200 shares	(251,193		)	—		—			—			—			(251,193		)
Additional paid-in-capital	1,603,669			223,412		3,983,196			2,092,725			(6,299,333		)	1,603,669
Accumulated (deficit) equity	(842,119		)	365,751		(158,506		)	(973,773		)	766,528			(842,119		)
Total stockholders’ equity (deficit)	512,740			589,163		3,824,690			1,118,952			(5,532,805		)	512,740
Total liabilities, redeemable preferred stock and stockholders’ equity (deficit)	$	600,967		$	3,996,045	$	4,043,635		$	1,886,128		$	(6,656,340	)	$	3,870,435

Condensed Consolidated Statements of Cash Flows

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2014

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Cash flows from operating activities:
Net income (loss)	$	8,408		$	12,405		$	99,547		$	(986	)	$	(110,966	)	$	8,408
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	—			1,346			85,749			—			—			87,095
Amortization of debt issuance costs/discounts	—			6,886			—			143			—			7,029
Provision for doubtful accounts	—			—			2,468			—			—			2,468
Gain on sale of assets or stations	—			—			(1,271		)	—			—			(1,271		)
Fair value adjustment of derivative instruments	—			21			—			—			—			21
Deferred income taxes	(3,168		)	(69,064		)	79,677			(782		)	—			6,663
Stock-based compensation expense	—			12,645			—			—			—			12,645
(Earnings) loss from consolidated subsidiaries	(12,405		)	(99,547		)	986			—			110,966			—
Changes in assets and liabilities	—			258,974			(275,568		)	(8,375		)	—			(24,969		)
Net cash (used in) provided by operating activities	(7,165		)	123,666			(8,412		)	(10,000		)	—			98,089
Cash flows from investing activities
Proceeds from sale of assets or stations	—			—			15,718			—			—			15,718
Restricted cash	—			(4,200		)	—			—			—			(4,200		)
Acquisition less cash required	—			—			(5,500		)	—			—			(5,500		)
Capital expenditures	—			(134		)	(13,267		)	—			—			(13,401		)
Net cash used in investing activities	—			(4,334		)	(3,049		)	—			—			(7,383		)
Cash flows from financing activities:
Intercompany transactions, net	(5,364		)	(41,365		)	11,729			35,000			—			—
Repayments of borrowings under term loans and revolving credit facilities	—			(71,125		)	—			(35,000		)	—			(106,125		)
Proceeds from borrowings under term loans and revolving credit facilities	—			—			—			10,000			—			10,000
Tax withholding payments on behalf of employees	—			(1,320		)	—			—			—			(1,320		)
Proceeds from exercises of warrants	106			—			—			—			—			106
Proceeds from exercises of options	619			—			—			—			—			619
Deferred financing costs	—			(21		)	—			—			—			(21		)
Net cash (used in) provided by financing activities	(4,639		)	(113,831		)	11,729			10,000			—			(96,741		)
(Decrease) increase in cash and cash equivalents	(11,804		)	5,501			268			—			—			(6,035		)
Cash and cash equivalents at beginning of period	11,804			20,988			—			—			—			32,792
Cash and cash equivalents at end of period	$	—		$	26,489		$	268		$	—		$	—		$	26,757

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2013

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Cash flows from operating activities:
Net income (loss)	$	25,148		$	33,334		$	197,959		$	(25,448	)	$	(205,845	)	$	25,148
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	—			1,451			85,358			—			—			86,809
Amortization of debt issuance costs/discount	—			7,515			—			—			—			7,515
Provision for doubtful accounts	—			—			2,002			—			—			2,002
Loss on sale of assets or stations	—			—			(3,556		)	—			—			(3,556		)
Loss on early extinguishment of debt	—			4,539			—			—			—			4,539
Fair value adjustment of derivative instruments	—			(27		)	(2,630		)	—			—			(2,657		)
Deferred income taxes	—			—			(14,249		)	23,908			—			9,659
Stock-based compensation expense	—			7,393			—			—			—			7,393
(Earnings) loss from consolidated subsidiaries	(33,334		)	(197,959		)	25,448			—			205,845			—
Changes in assets and liabilities	—			22,787			(33,512		)	1,540			—			(9,185		)
Net cash (used in) provided by operating activities	(8,186		)	(120,967		)	256,820			—			—			127,667
Cash flows from investing activities:
Proceeds from sale of assets or stations	—			—			6,492			—			—			6,492
Restricted cash	—			2,192			—			—			—			2,192
Initial payment of Green Bay Option	—			—			(5,000		)	—			—			(5,000		)
Proceeds from exchange of asset or stations	—			—			(52,685		)	—			—			(52,685		)
Capital expenditures	—			(441		)	(8,007		)	—			—			(8,448		)
Net cash provided by (used in) investing activities	—			1,751			(59,200		)	—			—			(57,449		)
Cash flows from financing activities:
Intercompany transactions, net	(68,787		)	272,658			(203,871		)	—			—			—
Repayments of borrowings under term loans and revolving credit facilities	—			(88,931		)	—			—			—			(88,931		)
Tax withholding payments on behalf of employees	—			(337		)	—			—			—			(337		)
Redemption of Series A preferred stock	(73,150		)	—			—			—			—			(73,150		)
Proceeds from issuance of Series B preferred stock	77,241			—			—			—			—			77,241
Series A Preferred stock dividends	(9,395		)	—			—			—			—			(9,395		)
Proceeds from exercises of warrants	614			—			—			—			—			614
Proceeds from exercise options	64			—			—			—			—			64
Deferred financing costs	—			(204		)	—			—			—			(204		)
Net cash (used in) provided by financing activities	(73,413		)	183,186			(203,871		)	—			—			(94,098		)
(Decrease) increase in cash and cash equivalents	(81,599		)	63,970			(6,251		)	—			—			(23,880		)
Cash and cash equivalents at beginning of period	81,599			—			6,451			—			—			88,050
Cash and cash equivalents at end of period	$	—		$	63,970		$	200		$	—		$	—		$	64,170

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Earnings Per Share ("EPS") (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings per Common Share

The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three and nine months ended September 30, 2014 and 2013 (amounts in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Basic Income (Loss) Per Share
Numerator:
Undistributed net income (loss) from continuing operations	$	2,540	$	10,492	$	8,408	$	(1,059	)
Less:
Dividends declared on redeemable preferred stock	—		4,091		—		9,395
Accretion of redeemable preferred stock	—		486		—		2,474
Participation rights of the Company Warrants in undistributed earnings	25		896		318		—
Participation rights of unvested restricted stock in undistributed earnings	2		12		9		—
Basic undistributed net income (loss) from continuing operations attributable to common shares	$	2,513	$	5,007	$	8,081	$	(12,928	)
Denominator:
Basic weighted average shares outstanding	231,885		179,700		224,075		176,995
Basic undistributed net income (loss) from continuing operations per share--attributable to common shares	$	0.01	$	0.03	$	0.04	$	(0.07	)
Diluted Income (Loss) Per Share:
Numerator:
Undistributed net income (loss) from continuing operations	$	2,540	$	10,492	$	8,408	$	(1,059	)
Less:
Dividends declared on redeemable preferred stock	—		4,091		—		9,395
Accretion of redeemable preferred stock	—		486		—		2,474
Participation rights of the Company Warrants in undistributed net earnings	25		881		313		—
Participation rights of unvested restricted stock in undistributed earnings	2		12		9		—
Basic undistributed net income (loss) from continuing operations attributable to common shares	$	2,513	$	5,022	$	8,086	$	(12,928	)
Denominator:
Basic weighted average shares outstanding	231,885		179,700		224,075		176,995
Effect of dilutive stock options and warrants	1,337		3,432		3,728		—
Diluted weighted average shares outstanding	233,222		183,132		227,803		176,995
Diluted undistributed net income (loss) from continuing operations attributable to common shares	$	0.01	$	0.03	$	0.04	$	(0.07	)

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Supplemental Condensed Consolidating Financial Information (Narrative) (Details)	Sep. 30, 2014	Dec. 31, 2013	May 13, 2011
Condensed Financial Statements, Captions [Line Items]
Ownership percentage in subsidiaries	100.00%
7.75% senior notes
Condensed Financial Statements, Captions [Line Items]
Interest on borrowings, per annum	7.75%	7.75%	7.75%

XML

Long-Term Debt - Additional Information (Detail) (USD $)	0 Months Ended					3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	0 Months Ended						0 Months Ended			0 Months Ended
	May 13, 2011	May 13, 2011	Sep. 30, 2014 7.75% senior notes	Dec. 31, 2013 7.75% senior notes	May 13, 2011 7.75% senior notes	Sep. 30, 2014 First Lien Credit Facilities	Sep. 30, 2014 First Lien Credit Facilities	Sep. 30, 2013 Second Lien Credit Facilities	Sep. 30, 2013 Second Lien Credit Facilities	Dec. 23, 2013 Line of Credit Amended and Restated Credit Agreement	Sep. 30, 2014 Line of Credit Amended and Restated Credit Agreement	Dec. 23, 2013 Line of Credit Amended and Restated Credit Agreement	Sep. 30, 2014 Securitization facility Amended and Restated Credit Agreement	Dec. 23, 2013 Securitization facility Amended and Restated Credit Agreement	Dec. 23, 2013 Letter of Credit Amended and Restated Credit Agreement	Dec. 06, 2013 Accounts Receivable Securitization Facility Securitization Facility	Sep. 30, 2014 Accounts Receivable Securitization Facility Securitization Facility	Dec. 06, 2013 Accounts Receivable Securitization Facility Securitization Facility	Dec. 23, 2013 LIBOR Line of Credit Amended and Restated Credit Agreement	Dec. 06, 2013 LIBOR Accounts Receivable Securitization Facility Securitization Facility	Dec. 23, 2013 Base Rate Line of Credit Amended and Restated Credit Agreement	Dec. 23, 2013 Federal Funds Rate Line of Credit Amended and Restated Credit Agreement	Dec. 06, 2013 Index Rate Accounts Receivable Securitization Facility Securitization Facility	Sep. 30, 2014 Maximum Line of Credit Amended and Restated Credit Agreement	Sep. 30, 2014 Minimum Line of Credit Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Term loan												$ 2,025,000,000.000		$ 200,000,000.0	$ 30,000,000.0			$ 50,000,000.0
Basis spread on LIBOR/base rate										1.00%									3.25%	2.50%	2.25%	0.50%	1.00%
Floor rate										2.00%									1.00%
Amortization rate per annum										1.00%
Interest rate per annum											4.25%
Consolidated net leverage ratio																								5.75	4.00
Percentage ownership of capital stock of any future first-tier foreign subsidiaries										66.00%
Amount outstanding											1,954,000,000		0				0
Senior Notes issued		610,000,000.0
Interest on borrowings, per annum			7.75%	7.75%	7.75%
Amount repaid under outstanding term loan facility	575,800,000
Agreement maturity date	May 01, 2019
Percentage of Senior Notes to be redeemed prior to May 1, 2014	35.00%
Percentage of Senior Notes to be redeemed prior to May 1, 2015	100.00%
Amortization of debt discount and debt issuance costs						$ 2,300,000	$ 7,000,000	$ 2,300,000	$ 7,500,000
Term of revolving accounts receivable securitization facility																5 years

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Description of Business, Interim Financial Data and Basis of Presentation (Narrative) (Details) (USD $) In Millions, unless otherwise specified		0 Months Ended		1 Months Ended
	Sep. 30, 2014 Affiliate Market Station	Apr. 15, 2014 San Francisco Baseball Associates, LLC	Apr. 15, 2014 San Francisco Baseball Associates, LLC Other income (expense), net	Sep. 30, 2014 Land and Building
Accounting Policies [Line Items]
Number of owned and operated radio stations	460
Number of markets	90
Number of radio stations	9,000
Due diligence period				60 days
Class B Membership Interest (percentage)		1.59%
Sales price for Class B Membership Interest		$ 13.0
Gain on sale of Class B Membership Interest			$ 3.2

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Acquisitions and Dispositions - Additional Information (Detail) (USD $)	9 Months Ended		0 Months Ended		0 Months Ended		9 Months Ended	12 Months Ended	0 Months Ended	3 Months Ended	9 Months Ended		0 Months Ended	9 Months Ended		0 Months Ended				0 Months Ended
	Sep. 30, 2014 Affiliate Market	Sep. 30, 2013	Aug. 01, 2014 Wise Brother Media Inc	Sep. 30, 2014 Wise Brother Media Inc	Dec. 31, 2013 Green Bay Purchase Station	Apr. 10, 2009 Green Bay Purchase Station	Sep. 30, 2014 Green Bay Purchase	Dec. 31, 2013 Green Bay Purchase Station	Dec. 12, 2013 WestwoodOne Acquisition	Sep. 30, 2014 WestwoodOne Acquisition	Sep. 30, 2014 WestwoodOne Acquisition	Dec. 12, 2013 WestwoodOne Acquisition Station	Nov. 14, 2013 Townsquare Transaction Station Market	Sep. 30, 2014 Townsquare Transaction	Nov. 14, 2013 Townsquare Transaction Market	Jan. 08, 2013 WFME Asset Exchange	Jan. 08, 2013 WFME Asset Exchange	Sep. 30, 2014 WFME Asset Exchange Maximum	Dec. 31, 2013 WFME Asset Exchange Maximum	Jan. 17, 2013 Pamal Broadcasting Asset Purchase
Business Acquisition [Line Items]
Number of radio stations acquired					5	5		5					5
Total purchase price			$ 5,500,000		$ 17,600,000											$ 40,083,000				$ 6,483,000
Revenue growth rates (percentage)					2.50%				2.00%				2.00%
Discount rate used in fair value calculations (percentage)					10.00%				10.00%				10.00%
Purchase accounting adjustment to reflect final determination of fair value							2,600,000							3,600,000
Number of radio stations	9,000											10,000
Acquisition purchase price paid in cash									45,000,000							40,000,000
Repayments of outstanding debt	106,125,000	88,931,000							215,000,000
Add: Cash received									235,000,000				235,000,000
Amount of purchase price placed in escrow												22,500,000
Revenues attributable to acquiree included in condensed consolidated statement of operations										56,500,000	190,500,000
Number of radio stations sold													53
Number of markets	90														12
Number of radio stations exchanged													15
Number of markets for radio stations exchanged															2
Total purchase price if certain future conditions are met				200,000													10,000,000
Estimated fair value of contingent consideration																	$ 31,000	$ 100,000	$ 100,000
Future market revenue growth rates for residual year																2.00%
Weighted average cost of capital																10.00%

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Acquisitions and Dispositions

9 Months Ended

Sep. 30, 2014

Business Combinations, Discontinued Operations and Disposal Groups [Abstract]

Acquisitions and Dispositions

Acquisitions and Dispositions

2014 Acquisitions and Dispositions

Wise Brothers Acquisition

On August 1, 2014, the Company completed the purchase of Wise Brother Media, Inc. for $5.5 million in cash (the "Wise Brothers Acquisition"). The total purchase price is subject to an increase if certain future conditions are met as detailed in the purchase agreement. The Company has estimated the fair value of the contingent consideration to be less than $0.2 million as of September 30, 2014. Any future change in the estimated fair value of the contingent consideration will be recorded in the Company's results of operations in the period of such change.

Revenues attributable to the assets acquired in the Wise Brothers Acquisition were not material to the Company’s condensed consolidated statement of operations for the three or nine months ended September 30, 2014.

The table below summarizes the preliminary purchase price allocation in the Wise Brothers Acquisition (dollars in thousands):

Allocation	Amount
Property and equipment	$	50
Deferred income taxes	100
Other intangible assets	5,500
Current liabilities	(75		)
Other liabilities	(75		)
Total purchase price	$	5,500

The definite-lived intangible assets acquired in the Wise Brothers Acquisition are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years	Fair Value
Programming content	4	$	5,500

2013 Acquisitions and Dispositions

Green Bay Purchase

On December 31, 2013, the Company completed the purchase of five radio stations in Green Bay, Wisconsin from Clear Channel Communications, Inc. ("Clear Channel") for $17.6 million in cash (the "Green Bay Purchase"). The Company had been operating these stations under a local marketing agreement ("LMA") with Clear Channel since April 10, 2009.

Revenues attributable to the stations acquired in the Green Bay Purchase were not material to the Company’s consolidated statement of operations for the three or nine months ended September 30, 2014.

The table below summarizes the purchase price allocation in the Green Bay Purchase (dollars in thousands):

Allocation	Amount
Property and equipment	$	1,111
Broadcast licenses	4,354
Goodwill	2,637
Fair value of exercised put option	9,534
Total purchase price	$	17,636

The material assumptions utilized in the valuation of intangible assets acquired and liabilities assumed include expected overall future market revenue growth rates for the residual year of approximately 2.5% and a weighted average cost of capital of 10.0%. Goodwill is equal to the difference between the purchase price and the value assigned to the tangible and intangible assets acquired and liabilities assumed. All of the acquired goodwill balance is deductible for tax purposes.

During the nine months ended September 30, 2014, the Company recorded a $2.6 million purchase accounting adjustment to reflect the Company's final determination of the fair value of broadcast licenses upon the date of acquisition.

WestwoodOne Acquisition

On December 12, 2013, Cumulus completed the acquisition of WestwoodOne, Inc. (formerly known as Dial Global, Inc., "WestwoodOne"), an independent, full-service radio network company offering news, sports, formats, prep services, talk and music programming, jingles and imaging, and special events, as well as national advertising sales representation (the "WestwoodOne Acquisition"). The WestwoodOne Acquisition added sports, news, talk, music and programming services content - enabling the Company to provide an even broader array of programming content to approximately 10,000 U.S. radio stations, other media platforms and international platforms. Content acquired through the WestwoodOne Acquisition included NFL, NCAA basketball, NASCAR, CBS News and other popular programming.

In connection with the WestwoodOne Acquisition, all of the issued and outstanding shares of capital stock of WestwoodOne were automatically canceled and converted into the right to receive an aggregate of approximately $45.0 million in cash, and WestwoodOne repaid all of its outstanding indebtedness. The payment of the purchase price to complete the WestwoodOne Acquisition (including the cash used to repay approximately $215.0 million of WestwoodOne’s outstanding indebtedness) was funded from cash on hand, which included $235.0 million in cash proceeds from the Townsquare Transaction (defined below). As a result of the WestwoodOne Acquisition, WestwoodOne became a wholly owned subsidiary of the Company.

Although the WestwoodOne Acquisition was not subject to the pre-closing notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act, the Antitrust Division of the Department of Justice (“DOJ”) is conducting a review of the transaction. Pursuant to an agreement entered into at the closing of the WestwoodOne Acquisition, $22.5 million of the purchase price was placed in escrow (the “Escrow Fund”) pending the completion of the DOJ investigation. The Escrow Fund will be available to compensate Cumulus for expenses in defending the investigation and to the extent Cumulus incurs any loss as a result of any final remedial action taken by the DOJ with respect to its investigation.

Revenues of $56.5 million and $190.5 million attributable to WestwoodOne were included in the Company’s condensed consolidated statement of operations for the three and nine months ended September 30, 2014, respectively.

Net income attributable to WestwoodOne has not been presented due to the impracticability of obtaining detailed data for the three and nine months ended September 30, 2014.

The table below summarizes the purchase price allocation in the WestwoodOne Acquisition (dollars in thousands):

Allocation	Amount
Current assets	$	91,171
Property and equipment	23,714
Other intangibles	150,900
Goodwill	104,912
Other assets	4,946
Current liabilities	(69,144		)
Other liabilities	(46,499		)
Total purchase price	$	260,000

The material assumptions utilized in the valuation of intangible assets acquired and liabilities assumed include expected overall future market revenue growth rates for the residual year of approximately 2.0% and a weighted average cost of capital of 10%. Goodwill is equal to the difference between the purchase price and the value assigned to the tangible and intangible assets acquired and liabilities assumed. The Company is treating the acquisition as a taxable asset acquisition pursuant to Internal Revenue Code Section 338(g). As such, all of the acquired goodwill balance is deductible for income tax purposes.

The definite-lived intangible assets acquired in the WestwoodOne Acquisition are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years	Fair Value
Affiliate relationships	9	$	150,900

Townsquare Transaction

On November 14, 2013, the Company completed the sale to Townsquare Media, LLC (“Townsquare”) of 53 radio stations in 12 small and mid-sized markets for $235.0 million in cash and the swap with Townsquare of 15 radio stations in two small and mid-sized markets in exchange for five radio stations in Fresno, California (together, the "Townsquare Transaction"). The Company used the cash proceeds from the Townsquare Transaction to fund a portion of the purchase price payable to complete the WestwoodOne Acquisition.

Revenues attributable to the assets acquired in the Townsquare Transaction were not material to the Company’s condensed consolidated statement of operations for the three or nine months ended September 30, 2014.

The table below summarizes the purchase price allocation in the Townsquare Transaction (dollars in thousands):

Allocation	Amount
Current assets	$	1,860
Property and equipment	6,345
Broadcast licenses	13,500
Goodwill	10,200
Other assets	246
Other intangibles	552
Current liabilities	(520		)
Total purchase price	32,183
Less: Carrying value of stations transferred	(159,053		)
Add: Cash received	235,028
Gain on asset exchange	$	108,158

The material assumptions utilized in the valuation of intangible assets acquired and liabilities assumed included overall future market revenue growth rates for the residual year of approximately 2.0% and a weighted average cost of capital of 10%. Goodwill is equal to the difference between the purchase price and the value assigned to the tangible and intangible assets acquired and liabilities assumed. All of the acquired goodwill balance is deductible for tax purposes.

During the nine months ended September 30, 2014, the Company recorded a $3.6 million purchase accounting adjustment to reflect the Company's final determination of the fair value of broadcast licenses upon the date of acquisition.

The definite-lived intangible assets acquired in the Townsquare Transaction are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years	Fair Value
Advertising relationships	5	$	552

WFME Asset Exchange

On January 8, 2013, the Company completed its previously announced asset exchange (the “WFME Asset Exchange”) with Family Stations, Inc., pursuant to which it exchanged its WDVY station in New York plus $40.0 million in cash for Family Stations’ WFME station in Newark, New Jersey. This asset exchange provided Cumulus with a radio station in the United States’ largest media market, for the national NASH entertainment brand based on the country music lifestyle. The total purchase price is subject to an increase of up to $10.0 million if certain future conditions are met as detailed in the purchase agreement. The Company has estimated the fair value of the contingent consideration to be less than $0.1 million as of each of September 30, 2014 and December 31, 2013. Any future change in the estimated fair value of the contingent consideration will be recorded in the Company’s results of operations in the period of such change.

The table below summarizes the purchase price allocation in the WFME Asset Exchange (dollars in thousands):

Allocation	Amount
Other assets	$	1,460
Goodwill	11,461
Broadcast licenses	27,100
Plant, property, and equipment, net	62
Total purchase price	40,083
Less: Cash consideration	(40,000		)
Less: Carrying value of station transferred	(52		)
Less: Contingent consideration	(31		)
Gain on asset exchange	$	—

The material assumptions utilized in the valuation of intangible assets included overall future market revenue growth rates for the residual year of approximately 2.0% and a weighted average cost of capital of 10.0%. Goodwill was equal to the difference between the purchase price and the value assigned to tangible and intangible assets acquired. All of the goodwill is deductible for tax purposes.

Pamal Broadcasting Asset Purchase

On January 17, 2013, the Company completed the acquisition of WMEZ-FM and WXBM-FM from Pamal Broadcasting Ltd. for a purchase price of $6.5 million (the "Pamal Broadcasting Asset Purchase"). The transaction was part of the Company’s ongoing efforts to focus on radio stations in larger markets and geographically strategic regional clusters.

Revenues attributable to the assets acquired in the Pamal Broadcasting Asset Purchase were not material to the Company’s condensed consolidated statement of operations for the three or nine months ended September 30, 2014.

The table below summarizes the purchase price allocation in the Pamal Broadcasting Asset Purchase (dollars in thousands):

Allocation	Amount
Plant, property, and equipment, net	$	783
Broadcast licenses	5,700
Total purchase price	$	6,483

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information assumes the WestwoodOne Acquisition and the Townsquare Transaction occurred as of January 1, 2013. This unaudited pro forma financial information has been prepared based on estimates and assumptions, which management believes are reasonable, and is not necessarily indicative of the consolidated financial position or results of operations that Cumulus would have achieved had either the WestwoodOne Acquisition or the Townsquare Transaction actually occurred on January 1, 2013 or on any other historical date, nor is it reflective of the Company’s expected actual financial position or results of operations for any future period (dollars in thousands):

	Unaudited Supplemental As Reported / Pro Forma Data				Unaudited Supplemental Pro Forma Data
	Three Months Ended September 30,		Nine Months Ended September 30,		Three Months Ended September 30,		Nine Months Ended September 30,
Description	2014				2013
Net revenue	$	313,885	$	934,176	$	313,968	$	917,451
Net income (loss)	2,540		8,408		4,909		(19,432		)

The unaudited pro forma financial information set forth above for the three and nine months ended September 30, 2013 includes adjustments to reflect: (i) depreciation and amortization expense based on the fair value of long-lived assets acquired in the WestwoodOne Acquisition and the Townsquare Transaction; (ii) the elimination of interest expense and the loss on extinguishment of debt in connection with the WestwoodOne Acquisition, as all of WestwoodOne's outstanding indebtedness (including preferred stock) was repaid in connection therewith, and (iii) certain other unaudited pro forma adjustments that would be required to be made to prepare unaudited pro forma financial information under Accounting Standards Codification ("ASC") Topic 805, Business Combinations.

Unaudited pro forma financial information for the Green Bay Purchase, WFME Asset Exchange, Pamal Broadcasting Asset Purchase, and Wise Brothers Acquisition is not required, as such information is not material to the Company's financial statements.

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Summary of Preliminary Purchase Price Allocation (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended			0 Months Ended		0 Months Ended		0 Months Ended		0 Months Ended		0 Months Ended
	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012	Aug. 01, 2014 Wise Brother Media Inc	Aug. 01, 2014 Wise Brother Media Inc	Dec. 31, 2013 Green Bay Purchase	Dec. 31, 2013 Green Bay Purchase	Dec. 12, 2013 WestwoodOne Acquisition	Dec. 12, 2013 WestwoodOne Acquisition	Jan. 08, 2013 WFME Asset Exchange	Jan. 08, 2013 WFME Asset Exchange	Jan. 17, 2013 Pamal Broadcasting Asset Purchase	Jan. 17, 2013 Pamal Broadcasting Asset Purchase
Business Acquisition [Line Items]
Current assets										$ 91,171		$ 1,460
Property and equipment						50		1,111		23,714		62		783
Deferred income taxes						100
Other intangible assets						5,500
Broadcast licenses								4,354		150,900
Goodwill	1,255,519	1,256,741	1,204,953	1,195,594				2,637		104,912		11,461
Broadcast licenses	0	61,730									27,100		5,700
Other assets										4,946
Current liabilities						(75)				(69,144)
Other liabilities						(75)				(46,499)
Total purchase price					5,500		17,600				40,083		6,483
Less: Cash consideration									(45,000)		(40,000)
Less: Carrying value of station transferred												(52)
Less: Contingent consideration												(31)
Fair value of exercised put option								9,534
Total purchase price						5,500		17,636		260,000
Gain on asset exchange												$ 0

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Derivative Financial Instruments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	0 Months Ended		12 Months Ended	9 Months Ended	3 Months Ended
	Dec. 31, 2013 Green Bay Purchase Station	Apr. 10, 2009 Green Bay Purchase Station	Dec. 31, 2013 Green Bay Purchase Station	Sep. 30, 2014 Interest Rate Cap	Sep. 30, 2014 Interest Rate Cap J P Morgan	Sep. 30, 2013 Interest Rate Cap J P Morgan	Dec. 31, 2013 Interest Rate Cap J P Morgan	Dec. 08, 2011 Interest Rate Cap J P Morgan	Dec. 31, 2013 Green Bay Option Clear Channel and the Company	Apr. 10, 2009 Green Bay Option Clear Channel and the Company
Derivatives, Fair Value [Line Items]
Put option amount								$ 71.3	$ 17.6
LIBOR-based variable interest rate component of long-term debt								3.00%
Long-term assets attributable to the fair value of the interest rate cap					0.1		0.1
Interest expense					0.1	0.1
Interest rate cap maturity date				Dec. 08, 2015
Number of radio stations acquired	5	5	5
Monthly fee										$ 0.2

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Computation of Basic and Diluted Earnings per Common Share (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Denominator:
Basic weighted average shares outstanding	231,885,444	179,669,739	224,074,622	176,994,583
Basic undistributed net income (loss) from continuing operations per share--attributable to common shares	$ 0.01	$ 0.01	$ 0.04	$ 0.08
Diluted weighted average shares outstanding	233,222,153	183,131,260	227,802,636	180,032,349
Diluted undistributed net income (loss) from continuing operations attributable to common shares	$ 0.01	$ 0.01	$ 0.04	$ 0.08
Basic Share
Numerator:
Undistributed net income (loss) from continuing operations	$ 2,540	$ 10,492	$ 8,408	$ (1,059)
Less:
Dividends declared on redeemable preferred stock	0	4,091	0	9,395
Accretion of redeemable preferred stock	0	486	0	2,474
Basic undistributed net income (loss) from continuing operations attributable to common shares	2,513	5,007	8,081	(12,928)
Denominator:
Basic weighted average shares outstanding	231,885,000	179,700,000	224,075,000	176,995,000
Basic undistributed net income (loss) from continuing operations per share--attributable to common shares	$ 0.01	$ 0.03	$ 0.04	$ (0.07)
Diluted Share
Numerator:
Undistributed net income (loss) from continuing operations	2,540	10,492	8,408	(1,059)
Less:
Dividends declared on redeemable preferred stock	0	4,091	0	9,395
Accretion of redeemable preferred stock	0	486	0	2,474
Basic undistributed net income (loss) from continuing operations attributable to common shares	2,513	5,022	8,086	(12,928)
Denominator:
Basic weighted average shares outstanding	231,885,000	179,700,000	224,075,000	176,995,000
Effect of dilutive stock options and warrants	1,337,000	3,432,000	3,728,000	0
Diluted weighted average shares outstanding	233,222,000	183,132,000	227,803,000	176,995,000
Diluted undistributed net income (loss) from continuing operations attributable to common shares	$ 0.01	$ 0.03	$ 0.04	$ (0.07)
Warrants | Basic Share
Less:
Participation rights of the Company Warrants in undistributed earnings	25	896	318	0
Warrants | Diluted Share
Less:
Participation rights of the Company Warrants in undistributed earnings	25	881	313	0
Restricted Stock | Basic Share
Less:
Participation rights of unvested restricted stock in undistributed earnings, Basic	2	12	9	0
Restricted Stock | Diluted Share
Less:
Participation rights of unvested restricted stock in undistributed earnings, Diluted	$ 2	$ 12	$ 9	$ 0

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 26,757	$ 32,792	$ 64,170	$ 88,050
Restricted cash	10,346	6,146
Accounts receivable, less allowance for doubtful accounts of $5,043 and $5,306 at September 30, 2014 and December 31, 2013, respectively	239,578	264,805
Trade receivable	3,733	4,419
Assets held for sale	15,007	0
Prepaid expenses and other current assets	47,023	68,893
Total current assets	342,444	377,055
Property and equipment, net	224,720	254,702
Broadcast licenses	1,596,715	1,596,337
Other intangible assets, net	261,405	315,490
Goodwill	1,255,519	1,256,741	1,204,953	1,195,594
Other assets	65,852	70,110
Total assets	3,746,655	3,870,435
Current liabilities:
Accounts payable and accrued expenses	127,886	146,537
Trade payable	4,259	3,846
Current portion of long-term debt	0	5,937
Total current liabilities	132,145	156,320
Long-term debt, excluding 7.75% senior notes	1,923,987	1,985,956
7.75% senior notes	610,000	610,000
Secured loan	0	25,000
Other liabilities	71,756	79,913
Deferred income taxes	475,539	500,506
Total liabilities	3,213,427	3,357,695
Stockholders’ equity:
Treasury stock, at cost, 22,594,617 and 24,205,200 shares at September 30, 2014 and December 31, 2013, respectively	(231,517)	(251,193)
Additional paid-in-capital	1,595,910	1,603,669
Accumulated deficit	(833,712)	(842,119)
Total stockholders’ equity	533,228	512,740
Total liabilities and stockholders’ equity	3,746,655	3,870,435
Class A common stock
Stockholders’ equity:
Common stock	2,541	2,223
Class B common stock
Stockholders’ equity:
Common stock	0	154
Class C common stock
Stockholders’ equity:
Common stock	$ 6	$ 6

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Fair Value Measurements - Additional Information (Detail)	Sep. 30, 2014	Dec. 31, 2013	May 13, 2011
Term loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading prices rate to calculate the fair value	98.00%	100.00%
7.75% senior notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading prices rate to calculate the fair value	101.75%	105.18%
7.75% senior notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest on borrowings, per annum	7.75%	7.75%	7.75%

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Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:
Net income	$ 8,408	$ 25,148
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	87,095	86,809
Amortization of debt issuance costs/discounts	7,029	7,515
Provision for doubtful accounts	2,468	2,002
Gain on sale of assets or stations	(1,271)	(3,556)
Loss on early extinguishment of debt	0	4,539
Fair value adjustment of derivative instruments	21	(2,657)
Deferred income taxes	6,663	9,659
Stock-based compensation expense	12,645	7,393
Changes in assets and liabilities:
Accounts receivable	22,759	10,686
Trade receivable	686	(1,717)
Prepaid expenses and other current assets	(9,206)	(3,350)
Other assets	(12,304)	(69)
Accounts payable and accrued expenses	(19,085)	(11,281)
Trade payable	413	2,304
Other liabilities	(8,232)	(5,758)
Net cash provided by operating activities	98,089	127,667
Cash flows from investing activities:
Restricted cash	(4,200)	2,192
Acquisition less cash acquired	(5,500)	(52,685)
Initial payment of Green Bay Option	0	(5,000)
Proceeds from sale of assets or stations	15,718	6,492
Capital expenditures	(13,401)	(8,448)
Net cash used in investing activities	(7,383)	(57,449)
Cash flows from financing activities:
Repayment of borrowings under term loans and revolving credit facilities	(106,125)	(88,931)
Proceeds from borrowings under term loans and revolving credit facilities	10,000	0
Deferred financing costs	(21)	(204)
Tax withholding payments on behalf of employees	(1,320)	(337)
Proceeds from exercise of warrants	106	64
Proceeds from exercise of options	619	614
Preferred stock dividends	0	(9,395)
Redemption of Series A preferred stock	0	(73,150)
Proceeds from issuance of Series B preferred stock	0	77,241
Net cash used in financing activities	(96,741)	(94,098)
Decrease in cash and cash equivalents	(6,035)	(23,880)
Cash and cash equivalents at beginning of period	32,792	88,050
Cash and cash equivalents at end of period	26,757	64,170
Supplemental disclosures of cash flow information:
Interest paid	90,533	112,716
Income taxes paid	10,406	3,085
Supplemental disclosures of non-cash flow information:
Trade revenue	23,735	18,661
Trade expense	$ 25,038	$ 20,484

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Supplemental Condensed Consolidating Financial Information Condensed Consolidating Balance Sheet (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents	$ 26,757	$ 32,792	$ 64,170	$ 88,050
Restricted cash	10,346	6,146
Accounts receivable, less allowance for doubtful accounts	239,578	264,805
Trade receivable	3,733	4,419
Assets held for sale	15,007	0
Prepaid expenses and other current assets	47,023	68,893
Total current assets	342,444	377,055
Property and equipment, net	224,720	254,702
Broadcast licenses	1,596,715	1,596,337
Other intangible assets, net	261,405	315,490
Goodwill	1,255,519	1,256,741	1,204,953	1,195,594
Investment in consolidated subsidiaries	0	0
Intercompany receivables, net	0	0
Other assets	65,852	70,110
Total assets	3,746,655	3,870,435
Accounts payable and accrued expenses	127,886	146,537
Trade payable	4,259	3,846
Current portion of long-term debt	0	5,937
Total current liabilities	132,145	156,320
Long-term debt, excluding 7.75% senior notes	1,923,987	1,985,956
7.75% senior notes	610,000	610,000
Secured loan	0	25,000
Other liabilities	71,756	79,913
Intercompany payables, net	0	0
Deferred income taxes	475,539	500,506
Total liabilities	3,213,427	3,357,695
Treasury stock, at cost	(231,517)	(251,193)
Additional paid-in-capital	1,595,910	1,603,669
Accumulated deficit	(833,712)	(842,119)
Total stockholders’ equity	533,228	512,740
Total liabilities and stockholders’ equity	3,746,655	3,870,435
Cumulus Media Inc. (Parent Guarantor)
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents	0	11,804	0	81,599
Restricted cash	0	0
Accounts receivable, less allowance for doubtful accounts	0	0
Trade receivable	0	0
Assets held for sale
Prepaid expenses and other current assets	0	0
Total current assets	0	11,804
Property and equipment, net	0	0
Broadcast licenses	0	0
Other intangible assets, net	0	0
Goodwill	0	0
Investment in consolidated subsidiaries	616,828	589,163
Intercompany receivables, net	0	0
Other assets	0	0
Total assets	616,828	600,967
Accounts payable and accrued expenses	0	0
Trade payable	0	0
Current portion of long-term debt		0
Total current liabilities	0	0
Long-term debt, excluding 7.75% senior notes	0	0
7.75% senior notes	0	0
Secured loan		0
Other liabilities	0	0
Intercompany payables, net	83,600	88,227
Deferred income taxes	0	0
Total liabilities	83,600	88,227
Treasury stock, at cost	(231,517)	(251,193)
Additional paid-in-capital	1,595,910	1,603,669
Accumulated deficit	(833,712)	(842,119)
Total stockholders’ equity	533,228	512,740
Total liabilities and stockholders’ equity	616,828	600,967
Cumulus Media Holdings Inc. (Subsidiary Issuer)
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents	26,489	20,988	63,970	0
Restricted cash	10,346	6,146
Accounts receivable, less allowance for doubtful accounts	0	0
Trade receivable	0	0
Assets held for sale	0
Prepaid expenses and other current assets	24,820	5,948
Total current assets	61,655	33,082
Property and equipment, net	2,060	3,272
Broadcast licenses	0	0
Other intangible assets, net	0	0
Goodwill	0	0
Investment in consolidated subsidiaries	4,160,697	3,824,690
Intercompany receivables, net	84,391	88,227
Other assets	44,502	46,774
Total assets	4,353,305	3,996,045
Accounts payable and accrued expenses	31,689	24,966
Trade payable	0	0
Current portion of long-term debt		5,937
Total current liabilities	31,689	30,903
Long-term debt, excluding 7.75% senior notes	1,923,987	1,985,956
7.75% senior notes	610,000	610,000
Secured loan		0
Other liabilities	10,430	10,430
Intercompany payables, net	1,160,371	769,593
Deferred income taxes	0	0
Total liabilities	3,736,477	3,406,882
Treasury stock, at cost	0	0
Additional paid-in-capital	238,672	223,412
Accumulated deficit	378,156	365,751
Total stockholders’ equity	616,828	589,163
Total liabilities and stockholders’ equity	4,353,305	3,996,045
Subsidiary Guarantors
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents	268	0	200	6,451
Restricted cash	0	0
Accounts receivable, less allowance for doubtful accounts	0	0
Trade receivable	3,733	4,419
Assets held for sale	15,007
Prepaid expenses and other current assets	22,203	62,945
Total current assets	41,211	67,364
Property and equipment, net	222,660	251,430
Broadcast licenses	0	0
Other intangible assets, net	261,405	315,490
Goodwill	1,255,519	1,256,741
Investment in consolidated subsidiaries	1,121,176	1,118,952
Intercompany receivables, net	1,399,949	1,011,218
Other assets	20,559	22,440
Total assets	4,322,479	4,043,635
Accounts payable and accrued expenses	96,197	121,521
Trade payable	4,259	3,846
Current portion of long-term debt		0
Total current liabilities	100,456	125,367
Long-term debt, excluding 7.75% senior notes	0	0
7.75% senior notes	0	0
Secured loan		0
Other liabilities	61,326	69,483
Intercompany payables, net	0	0
Deferred income taxes	0	24,095
Total liabilities	161,782	218,945
Treasury stock, at cost	0	0
Additional paid-in-capital	4,219,656	3,983,196
Accumulated deficit	(58,959)	(158,506)
Total stockholders’ equity	4,160,697	3,824,690
Total liabilities and stockholders’ equity	4,322,479	4,043,635
Subsidiary Non-guarantors
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents	0	0	0	0
Restricted cash	0	0
Accounts receivable, less allowance for doubtful accounts	239,578	264,805
Trade receivable	0	0
Assets held for sale	0
Prepaid expenses and other current assets	0	0
Total current assets	239,578	264,805
Property and equipment, net	0	0
Broadcast licenses	1,596,715	1,596,337
Other intangible assets, net	0	0
Goodwill	0	0
Investment in consolidated subsidiaries	0	0
Intercompany receivables, net	0	24,090
Other assets	791	896
Total assets	1,837,084	1,886,128
Accounts payable and accrued expenses	0	50
Trade payable	0	0
Current portion of long-term debt		0
Total current liabilities	0	50
Long-term debt, excluding 7.75% senior notes	0	0
7.75% senior notes	0	0
Secured loan		25,000
Other liabilities	0	0
Intercompany payables, net	240,369	265,715
Deferred income taxes	475,539	476,411
Total liabilities	715,908	767,176
Treasury stock, at cost	0	0
Additional paid-in-capital	2,095,935	2,092,725
Accumulated deficit	(974,759)	(973,773)
Total stockholders’ equity	1,121,176	1,118,952
Total liabilities and stockholders’ equity	1,837,084	1,886,128
Eliminations
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents	0	0	0	0
Restricted cash	0	0
Accounts receivable, less allowance for doubtful accounts	0	0
Trade receivable	0	0
Assets held for sale	0
Prepaid expenses and other current assets	0	0
Total current assets	0	0
Property and equipment, net	0	0
Broadcast licenses	0	0
Other intangible assets, net	0	0
Goodwill	0	0
Investment in consolidated subsidiaries	(5,898,701)	(5,532,805)
Intercompany receivables, net	(1,484,340)	(1,123,535)
Other assets	0	0
Total assets	(7,383,041)	(6,656,340)
Accounts payable and accrued expenses	0	0
Trade payable	0	0
Current portion of long-term debt		0
Total current liabilities	0	0
Long-term debt, excluding 7.75% senior notes	0	0
7.75% senior notes	0	0
Secured loan		0
Other liabilities	0	0
Intercompany payables, net	(1,484,340)	(1,123,535)
Deferred income taxes	0	0
Total liabilities	(1,484,340)	(1,123,535)
Treasury stock, at cost	0	0
Additional paid-in-capital	(6,554,263)	(6,299,333)
Accumulated deficit	655,562	766,528
Total stockholders’ equity	(5,898,701)	(5,532,805)
Total liabilities and stockholders’ equity	(7,383,041)	(6,656,340)
Class A common stock
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	2,541	2,223
Class A common stock | Cumulus Media Inc. (Parent Guarantor)
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	2,541	2,223
Class A common stock | Cumulus Media Holdings Inc. (Subsidiary Issuer)
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	0	0
Class A common stock | Subsidiary Guarantors
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	0	0
Class A common stock | Subsidiary Non-guarantors
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	0	0
Class A common stock | Eliminations
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	0	0
Class B common stock
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	0	154
Class B common stock | Cumulus Media Inc. (Parent Guarantor)
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock		154
Class B common stock | Cumulus Media Holdings Inc. (Subsidiary Issuer)
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock		0
Class B common stock | Subsidiary Guarantors
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock		0
Class B common stock | Subsidiary Non-guarantors
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock		0
Class B common stock | Eliminations
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock		0
Class C common stock
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	6	6
Class C common stock | Cumulus Media Inc. (Parent Guarantor)
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	6	6
Class C common stock | Cumulus Media Holdings Inc. (Subsidiary Issuer)
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	0	0
Class C common stock | Subsidiary Guarantors
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	0	0
Class C common stock | Subsidiary Non-guarantors
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	0	0
Class C common stock | Eliminations
Condensed Balance Sheet Statements, Captions [Line Items]
Common stock	$ 0	$ 0

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Pro forma Financial Information (Detail) (Townsquare Asset Exchange, USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Townsquare Asset Exchange
Business Acquisition, Pro Forma Information [Line Items]
Net revenue	$ 313,885	$ 313,968	$ 934,176	$ 917,451
Net income (loss)	$ 2,540	$ 4,909	$ 8,408	$ (19,432)

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Acquisitions and Dispositions (Tables)

9 Months Ended

Sep. 30, 2014

Business Acquisition [Line Items]

Schedule of Purchase Price Allocation of Assets Sold

For the three and nine months ended September 30, 2013, (loss) income from discontinued operations was as follows (dollars in thousands):

	Three Months Ended   September 30,			Nine Months Ended   September 30,
	2013
Discontinued operations:
Net revenue	$	18,538		$	52,940
Income from discontinued operations before taxes	7,914			21,252
Income tax (expense) benefit	(11,369		)	4,955
(Loss) income from discontinued operations	(3,455		)	26,207

Wise Brother Media Inc

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The table below summarizes the preliminary purchase price allocation in the Wise Brothers Acquisition (dollars in thousands):

Allocation	Amount
Property and equipment	$	50
Deferred income taxes	100
Other intangible assets	5,500
Current liabilities	(75		)
Other liabilities	(75		)
Total purchase price	$	5,500

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The definite-lived intangible assets acquired in the Wise Brothers Acquisition are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years	Fair Value
Programming content	4	$	5,500

Green Bay Purchase

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The table below summarizes the purchase price allocation in the Green Bay Purchase (dollars in thousands):

Allocation	Amount
Property and equipment	$	1,111
Broadcast licenses	4,354
Goodwill	2,637
Fair value of exercised put option	9,534
Total purchase price	$	17,636

WestwoodOne Acquisition

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The table below summarizes the purchase price allocation in the WestwoodOne Acquisition (dollars in thousands):

Allocation	Amount
Current assets	$	91,171
Property and equipment	23,714
Other intangibles	150,900
Goodwill	104,912
Other assets	4,946
Current liabilities	(69,144		)
Other liabilities	(46,499		)
Total purchase price	$	260,000

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The definite-lived intangible assets acquired in the WestwoodOne Acquisition are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years	Fair Value
Affiliate relationships	9	$	150,900

Townsquare Transaction

Business Acquisition [Line Items]

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The definite-lived intangible assets acquired in the Townsquare Transaction are being amortized in relation to the expected economic benefits of such assets over their estimated useful lives and consist of the following (dollars in thousands):

Description	Estimated Useful Life in Years	Fair Value
Advertising relationships	5	$	552

Schedule of Purchase Price Allocation of Assets Sold

The table below summarizes the purchase price allocation in the Townsquare Transaction (dollars in thousands):

Allocation	Amount
Current assets	$	1,860
Property and equipment	6,345
Broadcast licenses	13,500
Goodwill	10,200
Other assets	246
Other intangibles	552
Current liabilities	(520		)
Total purchase price	32,183
Less: Carrying value of stations transferred	(159,053		)
Add: Cash received	235,028
Gain on asset exchange	$	108,158

WFME Asset Exchange

Business Acquisition [Line Items]

Summary of Preliminary Purchase Price Allocation

The table below summarizes the purchase price allocation in the WFME Asset Exchange (dollars in thousands):

Allocation	Amount
Other assets	$	1,460
Goodwill	11,461
Broadcast licenses	27,100
Plant, property, and equipment, net	62
Total purchase price	40,083
Less: Cash consideration	(40,000		)
Less: Carrying value of station transferred	(52		)
Less: Contingent consideration	(31		)
Gain on asset exchange	$	—

Pamal Broadcasting Asset Purchase

Business Acquisition [Line Items]

Summary of Preliminary Purchase Price Allocation

The table below summarizes the purchase price allocation in the Pamal Broadcasting Asset Purchase (dollars in thousands):

Allocation	Amount
Plant, property, and equipment, net	$	783
Broadcast licenses	5,700
Total purchase price	$	6,483

Townsquare Asset Exchange

Business Acquisition [Line Items]

Pro forma Financial Information

The following unaudited pro forma financial information assumes the WestwoodOne Acquisition and the Townsquare Transaction occurred as of January 1, 2013. This unaudited pro forma financial information has been prepared based on estimates and assumptions, which management believes are reasonable, and is not necessarily indicative of the consolidated financial position or results of operations that Cumulus would have achieved had either the WestwoodOne Acquisition or the Townsquare Transaction actually occurred on January 1, 2013 or on any other historical date, nor is it reflective of the Company’s expected actual financial position or results of operations for any future period (dollars in thousands):

	Unaudited Supplemental As Reported / Pro Forma Data				Unaudited Supplemental Pro Forma Data
	Three Months Ended September 30,		Nine Months Ended September 30,		Three Months Ended September 30,		Nine Months Ended September 30,
Description	2014				2013
Net revenue	$	313,885	$	934,176	$	313,968	$	917,451
Net income (loss)	2,540		8,408		4,909		(19,432		)

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Income from Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
(Loss) income from discontinued operations	$ 0	$ (3,455)	$ 0	$ 26,207
Townsquare Asset Exchange
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue		18,538		52,940
Income from discontinued operations before taxes		7,914		21,252
Income tax (expense) benefit		(11,369)		4,955
(Loss) income from discontinued operations		$ (3,455)		$ 26,207

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Intangible Assets and Goodwill (Tables)

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Intangible Assets Other Than Goodwill

The following table presents the changes in intangible assets, other than goodwill, during the periods from January 1, 2013 to December 31, 2013 and January 1, 2014 to September 30, 2014, and balances as of such dates (dollars in thousands):

	Indefinite-Lived			Definite-Lived			Total
Intangible Assets:
Balance as of January 1, 2013	$	1,602,373		$	258,303		$	1,860,676
Acquisition	61,730			152,522			214,252
Disposition	(67,766		)	(8,627		)	(76,393		)
Amortization	—			(86,708		)	(86,708		)
Balance as of December 31, 2013	1,596,337			315,490			1,911,827
Purchase price allocation adjustments	963			—			963
Acquisition	—			6,066			6,066
Disposition	(585		)	(70		)	(655		)
Amortization	—			(60,081		)	(60,081		)
Balance as of September 30, 2014	$	1,596,715		$	261,405		$	1,858,120

Schedule of changes in goodwill and accumulated impairment losses

The following table presents the changes in goodwill and accumulated impairment losses during the periods from January 1, 2014 to September 30, 2014 and January 1, 2013 to September 30, 2013, and balances as of such dates (dollars in thousands):

Goodwill:	2014			2013
Balance as of January 1:
Goodwill	$	1,586,482		$	1,525,335
Accumulated impairment losses	(329,741		)	(329,741		)
Subtotal	1,256,741			1,195,594
Acquisition	—			11,461
Purchase price allocation adjustments	(606		)	(1,889		)
Disposition	(616		)	(213		)
Balance as of September 30:
Goodwill	1,585,260			1,534,694
Accumulated impairment losses	(329,741		)	(329,741		)
Total	$	1,255,519		$	1,204,953

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Description of Business, Interim Financial Data and Basis of Presentation

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business, Interim Financial Data and Basis of Presentation

Description of Business, Interim Financial Data and Basis of Presentation:

Description of Business

Cumulus Media Inc. (and its consolidated subsidiaries, except as the context may otherwise require, “Cumulus,” “Cumulus Media,” “we,” “us,” “our,” or the “Company”) is a Delaware corporation, organized in 2002, and successor by merger to an Illinois corporation with the same name that had been organized in 1997.

Nature of Business

The Company combines high-quality local programming with iconic, nationally syndicated media, sports and entertainment brands in order to deliver premium choices for listeners, provide substantial reach for advertisers and create opportunities for shareholders. As the largest pure-play radio broadcaster in the United States, the Company provides exclusive content that is fully distributed through approximately 460 owned and operated stations in 90 U.S. media markets, approximately 9,000 broadcast radio affiliates and numerous digital channels. The Company is well-positioned in the widening digital audio space through a significant stake in the Rdio digital music service, featuring over 30 million songs on-demand in addition to custom playlists and exclusive curated channels. The Company is also the leading provider of country music and lifestyle content through its NASH brand, which will serve country fans through radio programming, NASH magazine, concerts, licensed products and television/video.

Interim Financial Data

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company and the notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The accompanying unaudited condensed consolidated financial statements include the condensed consolidated accounts of Cumulus and its wholly-owned subsidiaries, with all intercompany balances and transactions eliminated in consolidation. The December 31, 2013 condensed balance sheet data was derived from audited financial statements. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of our results of operations for, and financial condition as of the end of, the interim periods have been made. The results of operations for the three and nine months ended September 30, 2014, the cash flows for the nine months ended September 30, 2014 and the Company’s financial condition as of September 30, 2014, are not necessarily indicative of the results of operations or cash flows that can be expected for, or the Company’s financial condition that can be expected as of the end of, any other interim period or for the fiscal year ending December 31, 2014.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to bad debts, intangible assets, derivative financial instruments, income taxes, stock-based compensation, contingencies, litigation and purchase price allocations. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts and results may differ materially from these estimates.

Assets Held for Sale

On September 16, 2014, the Company entered into an agreement to sell certain land and buildings to a third party. The agreement is subject to various terms including a 60 day due diligence period. The carrying value of the identified assets have been classified as held for sale in the unaudited condensed consolidated balance sheet at September 30, 2014. The estimated fair value of the land and buildings is in excess of the carrying value.

Sale of San Francisco Baseball Associates, LLC Interest

On April 15, 2014, the Company sold its Class B Membership Interest of 1.59% in San Francisco Baseball Associates, LLC for $13.0 million, recognizing a gain on the sale of $3.2 million, which is included in other income (expense), net in the condensed consolidated statement of operations for the nine months ended September 30, 2014.

Reclassifications

Certain account balances in the 2013 periods have been reclassified to conform with classifications currently in use.

In the accompanying unaudited condensed consolidated statements of operations the Company separately presents content costs and other direct operating expenses as operating expense categories. In certain of the Company's historical disclosures, those line items were presented on a combined basis within the direct operating expenses line item in the statement of operations. Content costs consist of all costs related to the licensing, acquisition and development of the Company's programming. Other direct operating expenses consist of expenses related to the distribution and monetization of the Company's content across its platform and overhead expenses. There were no other costs included in direct operating expenses in 2013.

These reclassifications had no effect on previously reported results of operations or retained earnings.

Adoption of New Accounting Standards

ASU 2012-02. In July 2012, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2012-02. The amendments in this ASU give companies the option to perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired rather than calculating the fair value of the indefinite-lived intangible asset. The Company adopted this guidance effective January 1, 2013. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

ASU 2013-01. In January 2013, the FASB issued ASU 2013-01. The amendments in this ASU require companies to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The Company adopted this guidance effective January 1, 2013. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

ASU 2013-04. In February 2013, the FASB issued ASU 2013-04, which provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements where the total obligation is fixed at the reporting date, and for which no specific guidance currently exists. The Company adopted this guidance effective January 1, 2014. The adoption of this guidance did not have an impact on the Company's consolidated financial statements.

ASU 2013-11. In July 2013, the FASB issued ASU 2013-11. The amendments in this ASU clarify when a liability related to an unrecognized tax benefit should be presented in the financial statements as a reduction to the related deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. The Company adopted this guidance effective January 1, 2014. The adoption of this guidance did not have an impact on the Company's consolidated financial statements.

Recent Accounting Standards Updates

ASU 2014-08. In April 2014, the FASB issued ASU 2014-08. Under this ASU, only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. This ASU (1) expands the disclosure requirements for disposals that meet the definition of a discontinued operation, (2) requires entities to disclose information about disposals of individually significant components, (3) defines “discontinued operations” similarly to how it is defined under International Financial Reporting Standards ("IFRS") 5, and (4) requires entities to expand their disclosures about discontinued operations to include more information about assets, liabilities, income and expenses. In addition, this ASU will also require entities to disclose the pre-tax income attributable to a disposal of “an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements.” The ASU is effective prospectively for all disposals (or classifications as held for sale) that occur within annual periods beginning on or after December 15, 2014 and interim periods within those years. Early adoption is permitted. The Company is currently assessing the expected impact, if any, that this ASU will have on the consolidated financial statements.

ASU 2014-09. In May 2014, the FASB issued ASU 2014-09. The amended guidance under this ASU outlines a single comprehensive revenue model for entities to use in accounting for revenue arising from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the single comprehensive revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” Entities have the option of using either a full retrospective or modified approach to adopt the guidance. The ASU is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2016 (early adoption is not permitted). The Company is currently assessing the expected impact, if any, that this ASU will have on the consolidated financial statements.

ASU 2014-15. In August 2014, the FASB issued ASU 2014-15. The amendments in this update provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments in this ASU are effective for public and nonpublic entities for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently assessing the expected impact, if any, that this ASU will have on the consolidated financial statements.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 7.75% senior notes	Dec. 31, 2013 7.75% senior notes	May 13, 2011 7.75% senior notes	Sep. 30, 2014 Class A common stock	Dec. 31, 2013 Class A common stock	Oct. 16, 2013 Class A common stock	Sep. 30, 2014 Class B common stock	Dec. 31, 2013 Class B common stock	Sep. 30, 2014 Class C common stock	Dec. 31, 2013 Class C common stock
Condensed Financial Statements, Captions [Line Items]
Allowance for doubtful accounts	$ 5,043	$ 5,306
Treasury stock, shares	22,594,617	24,205,200
Interest on borrowings, per annum			7.75%	7.75%	7.75%
Common stock, par value (in dollars per share)						$ 0.01	$ 0.01		$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized						750,000,000	750,000,000		600,000,000	600,000,000	644,871	644,871
Common stock, shares issued						254,149,893	222,399,019	18,860,000	0	15,424,944	644,871	644,871
Common stock, shares outstanding						231,555,276	198,193,819		0	15,424,944	644,871	644,871

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Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Earnings (Loss) Per Share

For all periods presented, the Company has disclosed basic and diluted earnings (loss) per common share utilizing the two-class method. Basic earnings (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period. In accordance with the terms of the Company's certificate of incorporation, the Company allocates undistributed net income (loss) from continuing operations after any allocation for preferred stock dividends between each class of common stock on an equal basis.

Non-vested restricted shares of Class A common stock and the Company Warrants are considered participating securities for purposes of calculating basic weighted average common shares outstanding in periods in which the Company records net income. Diluted earnings (loss) per share is computed in the same manner as basic earnings (loss) per share after assuming issuance of common stock for all potentially dilutive equivalent shares, which includes stock options and certain other warrants to purchase common stock. Antidilutive instruments are not considered in this calculation. Under the two-class method, net income (loss) is allocated to common stock and participating securities to the extent that each security may share in earnings (loss), as if all of the earnings (loss) for the period had been distributed. Earnings (loss) are allocated to each participating security and common shares equally, after deducting dividends declared or accretion on preferred stock. The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three and nine months ended September 30, 2014 and 2013 (amounts in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Basic Income (Loss) Per Share
Numerator:
Undistributed net income (loss) from continuing operations	$	2,540	$	10,492	$	8,408	$	(1,059	)
Less:
Dividends declared on redeemable preferred stock	—		4,091		—		9,395
Accretion of redeemable preferred stock	—		486		—		2,474
Participation rights of the Company Warrants in undistributed earnings	25		896		318		—
Participation rights of unvested restricted stock in undistributed earnings	2		12		9		—
Basic undistributed net income (loss) from continuing operations attributable to common shares	$	2,513	$	5,007	$	8,081	$	(12,928	)
Denominator:
Basic weighted average shares outstanding	231,885		179,700		224,075		176,995
Basic undistributed net income (loss) from continuing operations per share--attributable to common shares	$	0.01	$	0.03	$	0.04	$	(0.07	)
Diluted Income (Loss) Per Share:
Numerator:
Undistributed net income (loss) from continuing operations	$	2,540	$	10,492	$	8,408	$	(1,059	)
Less:
Dividends declared on redeemable preferred stock	—		4,091		—		9,395
Accretion of redeemable preferred stock	—		486		—		2,474
Participation rights of the Company Warrants in undistributed net earnings	25		881		313		—
Participation rights of unvested restricted stock in undistributed earnings	2		12		9		—
Basic undistributed net income (loss) from continuing operations attributable to common shares	$	2,513	$	5,022	$	8,086	$	(12,928	)
Denominator:
Basic weighted average shares outstanding	231,885		179,700		224,075		176,995
Effect of dilutive stock options and warrants	1,337		3,432		3,728		—
Diluted weighted average shares outstanding	233,222		183,132		227,803		176,995
Diluted undistributed net income (loss) from continuing operations attributable to common shares	$	0.01	$	0.03	$	0.04	$	(0.07	)

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Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 21, 2014 Class A common stock	Oct. 21, 2014 Class C common stock
Document Information [Line Items]
Entity Registrant Name	CUMULUS MEDIA INC
Trading Symbol	CMLS
Entity Central Index Key	0001058623
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		231,555,276	644,871

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Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three months ended September 30, 2014, the Company recorded income tax expense of $3.5 million on pre-tax income from continuing operations of $6.0 million, resulting in an effective tax rate for the three months ended September 30, 2014 of approximately 58.3%. For the three months ended September 30, 2013, the Company recorded income tax expense of $7.0 million on pre-tax income from continuing operations of $17.5 million, resulting in an effective tax rate for the three months ended September 30, 2013 of approximately 40.0%.

The difference between the effective tax rate and the federal statutory rate of 35.0% for the three months ended September 30, 2014 primarily relates to state and local income taxes and changes in the valuation allowance on certain separate company filing jurisdiction net operating losses. For the three months ended September 30, 2013, the primary differences between the effective tax rate and federal statutory rate of 35.0% relate to state and local income taxes and tax amortization of broadcast licenses and goodwill as well as an allocation of the total tax provision to discontinued operations.

For the nine months ended September 30, 2014, the Company recorded income tax expense of $6.7 million on pre-tax income from continuing operations of $15.1 million, resulting in an effective tax rate for the nine months ended September 30, 2014 of approximately 44.4%. For the nine months ended September 30, 2013, the Company recorded an income tax expense of $19.0 million on pre-tax income from continuing operations of $18.0 million, resulting in an effective tax rate for the nine months ended September 30, 2013 of approximately 105.6%.

The difference between the effective tax rate and the federal statutory rate of 35.0% for the nine months ended September 30, 2014 primarily relates to state and local income taxes and changes in the valuation allowance on certain separate company filing jurisdiction net operating losses. For the nine months ended September 30, 2013, the primary differences between the effective tax rate and federal statutory rate of 35.0% relate to state and local income taxes, tax amortization of broadcast licenses and an allocation of a tax benefit to discontinued operations.

The Company continually reviews the adequacy of the valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC Topic 740. As of September 30, 2014, the Company continues to maintain a partial valuation allowance on certain state net operating loss carryforwards for which the Company does not believe they will be able to meet the more likely than not recognition standard for recovery. As of September 30, 2013, the Company maintained a full valuation allowance on its net deferred tax assets excluding deferred tax liabilities associated with the Company's indefinite lived intangible assets and deferred cancellation of debt income for which no estimated amount of deferred tax assets were available to satisfy. The valuation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company's financial statements or tax returns as well as future profitability.

We believe our annual effective tax rate before discrete items for fiscal year 2014 will be approximately 47.3%. The difference between the annual estimated effective tax rate and the federal statutory rate of 35% primarily relates to the valuation allowance on certain separate company net operating losses incurred in 2014.

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Condensed Consolidated Statements Of Operations (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement [Abstract]
Net revenue	$ 313,885	$ 262,535	$ 934,176	$ 750,680
Operating expenses:
Content costs	106,574	65,559	316,868	189,765
Other direct operating expenses	119,864	99,202	353,588	292,576
Depreciation and amortization	29,143	27,614	87,095	82,814
LMA fees	2,021	609	5,226	2,293
Corporate expenses (including stock-based compensation expense of $4,399, $2,259, $12,645 and $7,393, respectively)	14,756	11,757	53,215	33,517
Gain on sale of assets or stations	(373)	(5,198)	(1,271)	(3,662)
Loss (gain) on derivative instrument	0	172	0	(2,672)
Total operating expenses	271,985	199,715	814,721	594,631
Operating income	41,900	62,820	119,455	156,049
Non-operating (expense) income:
Interest expense	(36,647)	(45,502)	(109,380)	(134,221)
Interest income	352	308	1,024	942
Loss on early extinguishment of debt	0	0	0	(4,539)
Other income (expense), net	443	(139)	3,972	(247)
Total non-operating expense, net	(35,852)	(45,333)	(104,384)	(138,065)
Income from continuing operations before income taxes	6,048	17,487	15,071	17,984
Income tax expense	(3,508)	(6,995)	(6,663)	(19,043)
Income (loss) from continuing operations	2,540	10,492	8,408	(1,059)
(Loss) income from discontinued operations, net of taxes	0	(3,455)	0	26,207
Net income	2,540	7,037	8,408	25,148
Less: dividends declared and accretion of redeemable preferred stock	0	4,369	0	10,676
Income attributable to common shareholders	$ 2,540	$ 2,668	$ 8,408	$ 14,472
Basic and diluted income (loss) per common share (see Note 11, “Earnings (Loss) Per Share”):
Basic: Income (loss) from continuing operations per share	$ 0.01	$ 0.03	$ 0.04	$ (0.07)
(Loss) income from discontinued operations per share	$ 0.00	$ (0.02)	$ 0.00	$ 0.15
Income per share	$ 0.01	$ 0.01	$ 0.04	$ 0.08
Diluted: Income (loss) from continuing operations per share	$ 0.01	$ 0.03	$ 0.04	$ (0.07)
(Loss) income from discontinued operations per share	$ 0.00	$ (0.02)	$ 0.00	$ 0.15
Income per share	$ 0.01	$ 0.01	$ 0.04	$ 0.08
Weighted average basic common shares outstanding	231,885,444	179,669,739	224,074,622	176,994,583
Weighted average diluted common shares outstanding	233,222,153	183,131,260	227,802,636	180,032,349

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The Company’s derivative financial instruments consist of the following:

Interest Rate Cap

On December 8, 2011, the Company entered into an interest rate cap agreement with JPMorgan Chase Bank, N.A. (“JPMorgan”), to limit the Company’s exposure to interest rate risk. The interest rate cap has an aggregate notional amount of $71.3 million. The agreement caps the LIBOR-based variable interest rate component of the Company’s long-term debt at a maximum of 3.0% on an equivalent amount of the Company’s term loans. The unaudited condensed consolidated balance sheets as of September 30, 2014 and December 31, 2013 include long term-assets of less than $0.1 million attributable to the fair value of the interest rate cap. The Company reported interest expense of less than $0.1 million during the three months ended September 30, 2014 and 2013, respectively, attributed to the change in fair value adjustment. The interest rate cap matures on December 8, 2015.

The Company does not utilize financial instruments for trading or other speculative purposes.

Green Bay Option

On April 10, 2009, Clear Channel and the Company entered into an LMA pursuant to which the Company was responsible for operating (i.e., programming, advertising, etc.) five radio stations in Green Bay, Wisconsin, for a monthly fee payable to Clear Channel of approximately $0.2 million, in exchange for the Company retaining the operating profits from managing the radio stations. In 2013, Clear Channel exercised the put option contained in this LMA, which required the Company to purchase the five Green Bay radio stations subject to the LMA for $17.6 million (the fair value of those radio stations at the time of execution of the LMA) ("the Green Bay Option"). On December 31, 2013, the Company completed this acquisition (See Note 2 "Acquisitions and Dispositions").

The Company accounted for the Green Bay Option as a derivative contract. Accordingly, the fair value of the Green Bay Option was recorded as a liability with subsequent changes in the fair value recorded through earnings through the closing of the acquisition. The fair value of the Green Bay Option was determined using inputs that were supported by little or no market activity (a “Level 3” measurement). The fair value represented an estimate of the amount that the Company would have been required to pay if the option were transferred to another party as of the date of the valuation.

The location and fair value of derivatives in the unaudited condensed consolidated balance sheets are shown in the following table (dollars in thousands):

		Fair Value
Derivative Instruments	Balance Sheet Location	September 30, 2014		December 31, 2013
Derivatives not designated as hedging instruments:
Interest Rate Cap	Other assets	$	—	$	22
	Total	$	—	$	22

The location and effect of derivatives in the unaudited condensed consolidated statements of operations are shown in the following table (dollars in thousands):

		Recognized as Derivatives
		For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Derivative Instruments	Statement of Operations Location	2014		2013		2014		2013
Interest Rate Cap	Interest expense	$	—	$	42	$	21	$	15
Green Bay Option	Loss (gain) on derivative instrument	—		172		—		(2,672		)
	Total	$	—	$	214	$	21	$	(2,657	)

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Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and Goodwill

The following table presents the changes in intangible assets, other than goodwill, during the periods from January 1, 2013 to December 31, 2013 and January 1, 2014 to September 30, 2014, and balances as of such dates (dollars in thousands):

	Indefinite-Lived			Definite-Lived			Total
Intangible Assets:
Balance as of January 1, 2013	$	1,602,373		$	258,303		$	1,860,676
Acquisition	61,730			152,522			214,252
Disposition	(67,766		)	(8,627		)	(76,393		)
Amortization	—			(86,708		)	(86,708		)
Balance as of December 31, 2013	1,596,337			315,490			1,911,827
Purchase price allocation adjustments	963			—			963
Acquisition	—			6,066			6,066
Disposition	(585		)	(70		)	(655		)
Amortization	—			(60,081		)	(60,081		)
Balance as of September 30, 2014	$	1,596,715		$	261,405		$	1,858,120

The following table presents the changes in goodwill and accumulated impairment losses during the periods from January 1, 2014 to September 30, 2014 and January 1, 2013 to September 30, 2013, and balances as of such dates (dollars in thousands):

Goodwill:	2014			2013
Balance as of January 1:
Goodwill	$	1,586,482		$	1,525,335
Accumulated impairment losses	(329,741		)	(329,741		)
Subtotal	1,256,741			1,195,594
Acquisition	—			11,461
Purchase price allocation adjustments	(606		)	(1,889		)
Disposition	(616		)	(213		)
Balance as of September 30:
Goodwill	1,585,260			1,534,694
Accumulated impairment losses	(329,741		)	(329,741		)
Total	$	1,255,519		$	1,204,953

The Company has significant intangible assets recorded comprised primarily of broadcast licenses and goodwill acquired through acquisitions. The Company performs its annual impairment testing of broadcast licenses and goodwill during the fourth quarter and on an interim basis if events or circumstances indicate that broadcast licenses or goodwill may be impaired. The calculation of the fair value of each reporting unit is prepared using an income approach and discounted cash flow methodology. If the carrying value exceeds the estimate of fair value, the Company calculates impairment as the excess of the carrying value of goodwill over its estimated fair value and charges the impairment to results of operations in the period in which the impairment occurred. The Company reviews the carrying value of its definite-lived intangible assets for recoverability whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. There were no triggering events as of September 30, 2014 to necessitate the test as fair value exceeded carrying value.

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Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Income from Discontinued Operations

For the three and nine months ended September 30, 2013, (loss) income from discontinued operations was as follows (dollars in thousands):

	Three Months Ended   September 30,			Nine Months Ended   September 30,
	2013
Discontinued operations:
Net revenue	$	18,538		$	52,940
Income from discontinued operations before taxes	7,914			21,252
Income tax (expense) benefit	(11,369		)	4,955
(Loss) income from discontinued operations	(3,455		)	26,207

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Future Commitments

Effective December 31, 2009, the Company’s radio music license agreements with the two largest performance rights organizations, The American Society of Composers, Authors and Publishers (“ASCAP”) and Broadcast Music, Inc. (“BMI”), expired. In January 2010, the Radio Music License Committee (the “RMLC”), which negotiates music licensing fees for most of the radio industry with ASCAP and BMI, filed motions in the New York courts against these organizations on behalf of the radio industry, seeking interim fees and a determination of fair and reasonable industry-wide license fees. During 2010, the courts approved reduced interim fees for ASCAP and BMI. On January 27, 2012, the Federal District Court for the Southern District of New York approved a settlement between the RMLC and ASCAP concerning the fees payable covering the period January 1, 2010 through December 31, 2016. Included in the agreement is a $75.0 million industry fee credit against fees previously paid in 2010 and 2011, with such fees to be credited over the remaining period of the contract. The Company began recognizing the ASCAP credits as a reduction in direct operating expenses on January 1, 2012. On August 28, 2012, the Federal District Court for the Southern District of New York approved a settlement between the RMLC and BMI concerning the fees payable covering the period January 1, 2010 through December 31, 2016. Included in the agreement was a $70.5 million industry fee credit against fees previously paid in 2010 and 2011, with such fees having been made immediately available to the industry.

The radio broadcast industry’s principal ratings service is Nielsen Audio, which publishes surveys for domestic radio markets. Certain of the Company’s subsidiaries have agreements with Nielsen Audio under which they receive programming ratings materials in a majority of their respective markets. The remaining aggregate obligation under the agreements with Nielsen Audio is approximately $136.4 million and is expected to be paid in accordance with the agreements through December 2017.

The Company engages Katz Media Group, Inc. (“Katz”) as its national advertising sales agent. The national advertising agency contract with Katz contains termination provisions that, if exercised by the Company during the term of the contract, would obligate the Company to pay a termination fee to Katz, calculated based upon a formula set forth in the contract.

On September 13, 2013, the Company and Pulser entered into the Rdio Agreement which provides that Cumulus will act as the exclusive promotional agent for Rdio ad products, including display, mobile, in-line audio, synced banners and other digital inventory that may become available from time to time. In exchange for $75.0 million of promotional commitments over five years, Cumulus will receive 15% of the equity interests of Pulser, with the opportunity to earn additional equity in the form of warrants based on the achievement of certain performance milestones over the term of the Rdio Agreement. The Company will record the equity received for services at fair value and will evaluate the investment for impairment in subsequent periods.

The Company is committed under various contractual agreements to pay for broadcast rights that include news services and to pay for executives, talent, research, weather and other services.

The Company from time to time enters into radio network contractual obligations to guarantee a minimum amount of revenue share to contractual counterparties on certain programming in future years. Generally, these guarantees are subject to decreases dependent on clearance targets achieved. As of September 30, 2014, the Company believes that it will meet such minimum obligations.

On January 2, 2014 (the "Commencement Date”), Merlin Media, LLC (“Merlin”) and the Company entered into an LMA. Under this LMA, the Company is responsible for operating two FM radio stations in Chicago, Illinois, for monthly fees payable to Merlin of approximately $0.3 million, $0.4 million, $0.5 million and $0.6 million in the first, second, third and fourth years following the Commencement Date, respectively, in exchange for the Company retaining the operating profits from these radio stations.

In connection therewith, the Company and Merlin also entered into an agreement pursuant to which the Company has the right to purchase these two FM radio stations until October 4, 2017, for an amount in cash equal to the greater of (i) $70.0 million minus the aggregate amount of monthly fees paid by the Company on or prior to the earlier of the closing date or the date that is four years after the Commencement Date; or (ii) $50.0 million, and Merlin has the right to require the Company to purchase these two FM radio stations at any time during a ten-day period commencing October 4, 2017 for $71.0 million, minus the aggregate amount of monthly fees paid by the Company on or prior to the earlier of the closing date and the date that is four years after the Commencement Date.

The Company determined through its review of the requirements of ASC Topic 810, Consolidation ("ASC 810") that the Company is not the primary beneficiary of the LMA with Merlin, and, therefore consolidation of the stations is not required.

On April 1, 2014, the Company initiated an exit plan for a lease due to a restructuring in connection with the acquisition of WestwoodOne (the "Exit Plan"), which includes charges related to terminated contract costs. In connection with the Exit Plan, the Company recorded restructuring costs of $0.1 million and $5.2 million for the three and nine months ended September 30, 2014, respectively, which costs are included in corporate expenses in the condensed consolidated statement of operations. As of September 30, 2014, liabilities related to the Exit Plan of $0.4 million were included in accounts payable and accrued expenses and are expected to be paid within one year and $4.4 million of non-current liabilities are included in other liabilities in the condensed consolidated balance sheet. We anticipate no additional future charges for the Exit Plan other than true-ups to closed facilities lease charges and accretion expense.

On April 25, 2014, the Company entered into an LMA with Universal Media Access, LLC “(Universal”) pursuant to which the Company will be responsible for operating one FM radio station serving San Jose and San Francisco, California for a fixed fee to Universal of approximately $1.4 million each year for two years in exchange for the Company retaining the operating profits from this radio station.

In connection therewith, the Company and Universal also entered into an agreement pursuant to which the Company has the right to purchase the radio station at any time from April 25, 2014 until April 5, 2016 for $14.8 million minus the aggregate amount of monthly LMA fees paid by the Company on or prior to the earlier of the closing date or the date that is 18 months after April 25, 2014. In addition, Universal has the right to require the Company to purchase the station at any time during a ten-day period commencing April 5, 2016 for $14.8 million, minus the aggregate amount of fees paid by the Company on or prior to the earlier of the closing date and the date that is two years after April 25, 2014.

The Company determined through its review of the requirements of ASC 810 that the Company is not the primary beneficiary of the LMA with Universal, and, therefore consolidation of the station is not required.

As described in Note 2, “Acquisitions and Dispositions”, the Company may be required to pay additional cash consideration for the acquisitions of WFME in New York and Wise Brothers.

Legal Proceedings

We are currently party to, or a defendant in, various claims or lawsuits that are generally incidental to our business. We also expect that from time to time in the future we will be party to, or a defendant in, various claims or lawsuits that are generally incidental to our business. We expect that we will vigorously contest any such claims or lawsuits and believe that the ultimate resolution of any known claim or lawsuit will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

The Company is authorized to issue an aggregate of 1,450,644,871 shares of stock divided into four classes consisting of: (i) 750,000,000 shares designated as Class A common stock, (ii) 600,000,000 shares designated as Class B common stock, (iii) 644,871 shares designated as Class C common stock and (iv) 100,000,000 shares of preferred stock, each with a par value of $0.01 per share.

On October 16, 2013, the Company issued and sold 18,860,000 shares of its Class A common stock in an underwritten public offering, which included the full exercise of the underwriter’s over allotment option to purchase 2,460,000 shares, at a price of $5.00 per share. The Company received net proceeds after underwriting discounts and commissions and estimated offering expenses of $89.8 million and used approximately $78.0 million of the net proceeds from the offering to redeem all then-outstanding shares of the Company’s Series B preferred stock, including accrued and unpaid dividends. The remaining net proceeds from the offering were placed in the Company’s corporate treasury for general corporate purposes, and are being used from time to time for, among other things, repayment of debt, capital expenditures, the financing of possible business expansions and acquisitions, increasing the Company’s working capital and the financing of ongoing operating expenses and overhead.

Common Stock

Except with regard to voting and conversion rights, shares of Class A, Class B and Class C common stock are identical in all respects. The preferences, qualifications, limitations, restrictions, and the special or relative rights in respect of the common stock and the various classes of common stock are as follows:

• Voting Rights. The holders of shares of Class A common stock are entitled to one vote per share on any matter submitted to a vote of the stockholders of the Company, and the holders of shares of Class C common stock are entitled to ten votes for each share of Class C common stock held. Generally, the holders of shares of Class B common stock are not entitled to vote on any matter. However, holders of Class B common stock and Class C common stock are entitled to a separate class vote on any amendment or modification of any specific rights or obligations of the holders of Class B common stock or Class C common stock, respectively, that does not similarly affect the rights or obligations of the holders of Class A common stock. The holders of Class A common stock and of Class C common stock vote together, as a single class, on all matters submitted to a vote to the stockholders of the Company.

• Conversion. Each holder of Class B common stock and Class C common stock is entitled to convert at any time all or any part of such holder’s shares into an equal number of shares of Class A common stock; provided, however, that to the extent that such conversion would result in the holder holding more than 4.99% of the Class A common stock following such conversion, the holder will first be required to deliver to the Company an ownership certification to enable the Company to (a) determine that such holder does not have an attributable interest in another entity that would cause the Company to violate applicable FCC rules and regulations and (b) obtain any necessary approvals from the FCC or the Department of Justice. During the nine months ended September 30, 2014, all of the approximately 3.3 million shares of outstanding Class B common stock were converted into shares of Class A common stock.

After payment of dividends to the holders of any outstanding shares of Series B Preferred Stock, the holders of all classes of common stock are entitled to share ratably in any dividends that may be declared by the board of directors of the Company.

2009 Warrants

In June 2009, in connection with the execution of an amendment to the Company's then-outstanding credit agreement, the Company issued warrants to the lenders thereunder that allow them to acquire up to 1.3 million shares of Class A common stock at an exercise price of $1.17 per share (the “2009 Warrants”). The 2009 Warrants expire on June 29, 2019. The number of shares of Class A common stock issuable upon exercise of the 2009 Warrants is subject to adjustment in certain circumstances, including upon the payment of a dividend in shares of Class A common stock. At September 30, 2014, 0.5 million 2009 Warrants remained outstanding.

Equity Held in Reserve

Pursuant to the agreement governing the Company's acquisition of Citadel Broadcasting Company ("Citadel") in 2011 (the "Citadel Merger"), warrants to purchase 2.4 million shares of the Company’s common stock were reserved for potential future issuance in connection with the settlement of certain remaining allowed, disputed or not reconciled claims related to Citadel's bankruptcy. As part of the June 2014 completion of proceedings related to the Citadel Bankruptcy, the 2.4 million shares were issued for $25.0 million from treasury stock. The equity held in reserve was included in additional paid-in-capital on the accompanying unaudited condensed consolidated balance sheet at December 31, 2013.

Company Warrants

As a component of the Citadel Merger and the related financing transactions, the Company issued warrants to purchase an aggregate of 71.7 million shares of Class A common stock (the "Company Warrants") under a warrant agreement dated September 16, 2011 (the "Warrant Agreement"). The Company Warrants are exercisable at any time prior to June 3, 2030 at an exercise price of $0.01 per share. The exercise price of the Company Warrants is not subject to any anti-dilution protection, other than standard adjustments in the case of stock splits, dividends and the like. Pursuant to the terms and conditions of the Warrant Agreement, upon the request of a holder, the Company has the discretion to issue, upon exercise of the Company Warrants, shares of Class B common stock in lieu of an equal number of shares of Class A common stock and, upon request of a holder and at the Company’s discretion, the Company has the right to exchange such warrants to purchase an equivalent number of shares of Class B common stock for outstanding warrants to purchase shares of Class A common stock.

Conversion of the Company Warrants is subject to compliance with applicable FCC regulations, and the Company Warrants are exercisable provided that ownership of the Company’s securities by the holder does not cause the Company to violate applicable FCC rules and regulations relating to foreign ownership of broadcasting licenses.

Holders of Company Warrants are entitled to participate ratably in any distributions on the Company’s common stock on an as-exercised basis. No distribution will be made to holders of Company Warrants or common stock if (i) an FCC ruling, regulation or policy prohibits such distribution to holders of Company Warrants or (ii) the Company’s FCC counsel opines that such distribution is reasonably likely to cause (a) the Company to violate any applicable FCC rules or regulations or (b) any holder of Company Warrants to be deemed to hold an attributable interest in the Company.

During the three months ended September 30, 2014, approximately 0.3 million Company Warrants were converted into shares of Class A common stock. At September 30, 2014, 2.2 million Company Warrants remained outstanding.

Crestview Warrants

Also on September 16, 2011, but pursuant to a separate warrant agreement, the Company issued warrants to purchase 7.8 million shares of Class A common stock with an exercise price, as adjusted to date, of $4.34 per share (the "Crestview Warrants"). The Crestview Warrants are exercisable until September 16, 2021, and the per share exercise price is subject to standard weighted average adjustments in the event that the Company issues additional shares of common stock or common stock derivatives for less than the fair market value per share, as defined in the Crestview Warrants, as of the date of such issuance. In addition, the number of shares of Class A common stock issuable upon exercise of the Crestview Warrants, and the exercise price of the Crestview Warrants, are subject to adjustment in the, case of stock splits, dividends and the like. As of September 30, 2014, all 7.8 million Crestview Warrants remained outstanding.

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Supplemental Condensed Consolidating Financial Information Condensed Consolidating Balance Sheet (Parenthetical) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014 7.75% senior notes	Dec. 31, 2013 7.75% senior notes	May 13, 2011 7.75% senior notes	Sep. 30, 2014 Class A common stock	Dec. 31, 2013 Class A common stock	Oct. 16, 2013 Class A common stock	Sep. 30, 2014 Class B common stock	Dec. 31, 2013 Class B common stock	Sep. 30, 2014 Class C common stock	Dec. 31, 2013 Class C common stock
Condensed Balance Sheet Statements, Captions [Line Items]
Allowance for doubtful accounts	$ 5,043	$ 5,306
Treasury stock, shares	22,594,617	24,205,200
Interest on borrowings, per annum			7.75%	7.75%	7.75%
Common stock, par value (in dollars per share)						$ 0.01	$ 0.01		$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized						750,000,000	750,000,000		600,000,000	600,000,000	644,871	644,871
Common stock, shares issued						254,149,893	222,399,019	18,860,000	0	15,424,944	644,871	644,871
Common stock, shares outstanding						231,555,276	198,193,819		0	15,424,944	644,871	644,871

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Long-Term Debt

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

The Company’s long-term debt consisted of the following as of September 30, 2014 and December 31, 2013 (dollars in thousands):

	September 30, 2014			December 31, 2013
Term Loan and Securitization Facility:
Term loan	$	1,953,875		$	2,025,000
Securitization facility	—			25,000
Less: term loan discount	(29,888		)	(33,107		)
Total Term Loan and Securitization Facility	1,923,987			2,016,893
7.75% senior notes	610,000			610,000
Less: Current portion of long-term debt	—			(5,937		)
Long-term debt, net	$	2,533,987		$	2,620,956

Amended and Restated Credit Agreement

On December 23, 2013, the Company entered into an Amended and Restated Credit Agreement (the “Credit Agreement”), among the Company, Cumulus Media Holdings Inc., a direct wholly-owned subsidiary of the Company (“Cumulus Holdings”), as borrower, and certain lenders and agents. The Credit Agreement consists of a $2.025 billion term loan (the “Term Loan”) maturing in December 2020 and a $200.0 million revolving credit facility (the “Revolving Credit Facility”) maturing in December 2018. Under the Revolving Credit Facility, up to $30.0 million of availability may be drawn in the form of letters of credit.

Term Loan borrowings and borrowings under the Revolving Credit Facility bear interest, at the option of Cumulus Holdings, based on the Base Rate (as defined below) or the London Interbank Offered Rate (“LIBOR”), in each case plus 3.25% on LIBOR-based borrowings and 2.25% on Base Rate-based borrowings. LIBOR-based borrowings are subject to a LIBOR floor of 1.0% under the Term Loan. Base Rate-based borrowings are subject to a Base Rate Floor of 2.0% under the Term Loan. Base Rate is defined, for any day, as the fluctuating rate per annum equal to the highest of the (i) Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 1/2 of 1.0%, (ii) prime commercial lending rate of JPMorgan Chase Bank, N.A., as established from time to time, and (iii) 90 day LIBOR plus 1.0%. Amounts outstanding under the Term Loan amortize at a rate of 1.0% per annum of the original principal amount of the Term Loan, payable quarterly, commencing March 31, 2014, with the balance payable on the maturity date.

At September 30, 2014, the Term Loan bore interest at 4.25% per annum.

The representations, covenants and events of default in the Credit Agreement are customary for financing transactions of this nature. Events of default in the Credit Agreement include, among others: (a) the failure to pay when due the obligations owing thereunder; (b) the failure to comply with (and not timely remedy, if applicable) certain covenants; (c) certain defaults and accelerations under other indebtedness; (d) the occurrence of bankruptcy or insolvency events; (e) certain judgments against the Company or any of its restricted subsidiaries; (f) the loss, revocation or suspension of, or any material impairment in the ability to use one or more of, any material Federal Communications Commission ("FCC") licenses; (g) any representation or warranty made, or report, certificate or financial statement delivered, to the lenders subsequently proven to have been incorrect in any material respect; and (h) the occurrence of a Change in Control (as defined in the Credit Agreement). Upon the occurrence of an event of default, the lenders may terminate the loan commitments, accelerate all loans and exercise any of their rights under the Credit Agreement and the ancillary loan documents as a secured party.

In the event amounts are outstanding under the Revolving Credit Facility or any letters of credit are outstanding that have not been collateralized by cash, the Credit Agreement requires compliance with a consolidated first lien net leverage ratio covenant as of the end of each quarter. The required ratio at September 30, 2014 was 5.75 to 1. The ratio periodically decreases until it reaches 4.00 to 1 on March 31, 2018. As of September 30, 2014, the Company was in compliance with all of its covenants under the Credit Agreement.

Certain mandatory prepayments on the Term Loan are required upon the occurrence of specified events, including upon the incurrence of certain additional indebtedness, upon the sale of certain assets and upon the occurrence of certain condemnation or casualty events, and from excess cash flow.

The Company’s, Cumulus Holdings’ and their respective restricted subsidiaries’ obligations under the Credit Agreement are collateralized by a first priority lien on substantially all of the Company’s, Cumulus Holdings’ and their respective restricted subsidiaries’ assets (excluding the Company’s accounts receivable collateralizing the Company's revolving accounts receivable securitization facility (the “Securitization Facility”) with General Electric Capital Corporation (“GE”) as described below) in which a security interest may lawfully be granted, including, without limitation, intellectual property and substantially all of the capital stock of the Company’s direct and indirect domestic wholly-owned subsidiaries and 66% of the capital stock of any future first-tier foreign subsidiaries. In addition, Cumulus Holdings’ obligations under the Credit Agreement are guaranteed by the Company and substantially all of its restricted subsidiaries, other than Cumulus Holdings.

At September 30, 2014, the Company had $1.954 billion outstanding under the Term Loan and no amounts outstanding under the Revolving Credit Facility.

7.75% Senior Notes

On May 13, 2011, the Company issued $610.0 million aggregate principal amount of its 7.75% Senior Notes due 2019 (the "7.75% Senior Notes"). Proceeds from the sale of the 7.75% Senior Notes were used to, among other things, repay the $575.8 million outstanding under the term loan facility under the Company's prior credit agreement.

On September 16, 2011, the Company and Cumulus Holdings entered into a supplemental indenture with the trustee under the indenture governing the 7.75% Senior Notes which provided for, among other things, the (i) assumption by Cumulus Holdings of all obligations of the Company; (ii) substitution of Cumulus Holdings for the Company as issuer; (iii) release of the Company from all obligations as original issuer; and (iv) Company’s guarantee of all of Cumulus Holdings’ obligations, in each case under the indenture and the 7.75% Senior Notes.

Interest on the 7.75% Senior Notes is payable on each May 1 and November 1 of each year. The 7.75% Senior Notes mature on May 1, 2019.

Cumulus Holdings, as issuer of the 7.75% Senior Notes, may redeem all or part of the 7.75% Senior Notes at any time on or after May 1, 2015. At any time prior to May 1, 2014, Cumulus Holdings may redeem up to 35.0% of the 7.75% Senior Notes using the proceeds from certain equity offerings. At any time prior to May 1, 2015, Cumulus Holdings may redeem some or all of the 7.75% Senior Notes at a price equal to 100% of the principal amount, plus a “make-whole” premium. If Cumulus Holdings sells certain assets or experiences specific kinds of changes in control, it will be required to make an offer to purchase the 7.75% Senior Notes.

In connection with the substitution of Cumulus Holdings as the issuer of the 7.75% Senior Notes, the Company has also guaranteed the 7.75% Senior Notes. In addition, each existing and future domestic restricted subsidiary that guarantees the Company’s indebtedness, Cumulus Holdings’ indebtedness or indebtedness of the Company’s subsidiary guarantors (other than the Company’s subsidiaries that hold the licenses for the Company’s radio stations) guarantees, or will guarantee, the 7.75% Senior Notes. The 7.75% Senior Notes are senior unsecured obligations of Cumulus Holdings and rank equally in right of payment to all existing and future senior unsecured debt of Cumulus Holdings and senior in right of payment to all future subordinated debt of Cumulus Holdings. The 7.75% Senior Notes guarantees are the Company’s and the other guarantors’ senior unsecured obligations and rank equally in right of payment to all of the Company’s and the other guarantors’ existing and future senior debt and senior in right of payment to all of the Company’s and the other guarantors’ future subordinated debt. The 7.75% Senior Notes and the guarantees are effectively subordinated to any of Cumulus Holdings’, the Company’s or the guarantors’ existing and future secured debt to the extent of the value of the assets securing such debt. In addition, the 7.75% Senior Notes and the guarantees are structurally subordinated to all indebtedness and other liabilities, including preferred stock, of the Company’s non-guarantor subsidiaries, including all of the liabilities of the Company’s and the guarantors’ foreign subsidiaries and the Company’s subsidiaries that hold the licenses for the Company’s radio stations.

For the three and nine months ended September 30, 2014, the Company recorded an aggregate of $2.3 million and $7.0 million, respectively, of amortization of debt discount and debt issuance costs related to its Term Loan, Securitization Facility and 7.75% Senior Notes. For the three and nine months ended September 30, 2013, the Company recorded an aggregate of $2.3 million and $7.5 million of amortization of debt discount and debt issuance costs related to its first lien term loan and second lien term loan under the Company's prior credit agreement and 7.75% Senior Notes.

Accounts Receivable Securitization Facility

On December 6, 2013, the Company entered into a 5-year, $50.0 million Securitization Facility with GE, as a lender, as swingline lender and as administrative agent (together with any other lenders party thereto from time to time, the “Lenders”).

In connection with the entry into the Securitization Facility, pursuant to a Receivables Sale and Servicing Agreement, dated as of December 6, 2013 (the “Sale Agreement”), certain subsidiaries of the Company (collectively, the “Originators”) may sell and/or contribute their existing and future accounts receivable (representing all of the Company’s accounts receivable) to a special purpose entity and wholly owned subsidiary of the Company (the “SPV”). The SPV may thereafter make borrowings from the Lenders, which borrowings will be secured by those receivables, pursuant to a Receivables Funding and Administration Agreement, dated as of December 6, 2013 (the “Funding Agreement”). Cumulus Holdings services the accounts receivable on behalf of the SPV.

Advances available under the Funding Agreement at any time are subject to a borrowing base determined based on advance rates relating to the value of the eligible receivables held by the SPV at that time. The Securitization Facility matures on December 6, 2018, subject to earlier termination at the election of the SPV. Advances bear interest based on either LIBOR plus 2.50% or the Index Rate (as defined in the Funding Agreement) plus 1.00%. The SPV is also required to pay a monthly fee based on any unused portion of the Securitization Facility. The Securitization Facility contains representations and warranties, affirmative and negative covenants, and events of default that are customary for financings of this type.

At September 30, 2014, there were no amounts outstanding under the Securitization Facility.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The three levels of the fair value hierarchy to be applied to financial instruments when determining fair value are described below:

Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access;

Level 2 — Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and

Level 3 — Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial assets and liabilities are measured at fair value on a recurring basis and non-financial assets and liabilities are measured at fair value on a non-recurring basis. Fair values as of September 30, 2014 and December 31, 2013 were as follows (dollars in thousands):

				Fair Value Measurements at September 30, 2014 Using
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Equity interest in Pulser Media (2)	$	10,105		$	—	$	—	$	10,105
Total assets	$	10,105		$	—	$	—	$	10,105
Financial liabilities:
Other current liabilities
Contingent consideration (3)	$	(181	)	$	—	$	—	$	(181	)
Total liabilities	$	(181	)	$	—	$	—	$	(181	)

				Fair Value Measurements at December 31, 2013 Using
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Interest Rate Cap (1)	$	22		$	—	$	22	$	—
Equity interest in Pulser Media (2)	104			—		—		104
Total assets	$	126		$	—	$	22	$	104
Financial liabilities:
Other current liabilities
Contingent consideration (3)	$	(31	)	$	—	$	—	$	(31	)
Total liabilities	$	(31	)	$	—	$	—	$	(31	)

(1) Pursuant to the Interest Rate Cap, the Company pays a fixed interest rate on a $71.3 million notional amount of its term loan. The fair value of the Interest Rate Cap is determined based on a discounted cash flow analysis of the expected future cash flows using observable inputs, including interest rates and yield curves. Derivative valuations incorporate adjustments that are necessary to reflect the credit risk.

(2) On September 13, 2013, the Company and Pulser Media (the parent company of Rdio) ("Pulser"), entered into a five year strategic promotional partnership and sales arrangement (the "Rdio Agreement"). In exchange for $75 million of promotional commitments over five years, Cumulus will receive a 15% equity interest in Pulser, with the opportunity to earn additional equity, see Note 13 "Commitments and Contingencies". The fair value of the equity interest in Pulser was determined using inputs that are supported by little or no market activity (a Level 3 measurement). At September 30, 2014 the fair value of the equity interest in Pulser approximated its cost basis and the Company determined that the investment was not impaired.

(3) The fair value of the contingent consideration was determined using inputs that are supported by little or no market activity (a Level 3 measurement). Contingent consideration represents the fair value of the additional cash consideration potentially payable as part of the WFME Asset Exchange and Wise Brothers Acquisition. See Note 2 “Acquisitions and Dispositions”.

The assets associated with the Company’s Interest Rate Cap are measured within Level 2 of the fair value hierarchy. To estimate the fair value of the Interest Rate Cap, the Company used an industry standard cash valuation model, which utilizes a discounted cash flow approach, with all significant inputs derived from or corroborated by observable market data. See Note 6, “Derivative Financial Instruments.”

The reconciliation below contains the components of the change in fair value associated with the equity interest in Pulser from January 1, 2014 to September 30, 2014 (dollars in thousands):

Description	Equity Interest in Pulser
Fair value balance at January 1, 2014	$	104
Add: Additions to equity interest in Pulser	10,001
Fair value balance at September 30, 2014	$	10,105

The reconciliation below contains the components of the change in continuing contingency associated with the contingent consideration from January 1, 2014 to September 30, 2014 (dollars in thousands):

Description	Contingent Consideration
Fair value balance at January 1, 2014	$	(31	)
Add: Wise Brothers Acquisition	(150		)
Fair value balance at September 30, 2014	$	(181	)

Quantitative information regarding the significant unobservable inputs related to the WFME Asset Exchange contingent consideration as of September 30, 2014 was as follows (dollars in thousands):

Fair Value		Valuation Technique	Unobservable Inputs
$	31	Income Approach	Total term	5 years
			Conditions	3
			Bond equivalent yield discount rate	0.1	%

Significant increases (decreases) in any of the inputs in isolation would result in a lower (higher) fair value measurement.

Quantitative information regarding the significant unobservable inputs related to the Wise Brothers Acquisition contingent consideration as of September 30, 2014 was as follows (dollars in thousands):

Fair Value		Valuation Technique	Unobservable Inputs
$	150	Income Approach	Total term	2 years
			Conditions	4

Significant increases (decreases) in any of the inputs in isolation would result in a lower (higher) fair value measurement.

The following table shows the gross amount and fair value of the Company’s Term Loan, Securitization Facility and 7.75% Senior Notes (dollars in thousands):

	September 30, 2014		December 31, 2013
Term Loan:
Carrying value	$	1,953,875	$	2,025,000
Fair value - Level 2	1,914,798		2,025,000
Securitization Facility:
Carrying value	$	—	$	25,000
Fair value - Level 2	—		25,000
7.75% Senior Notes:
Carrying value	$	610,000	$	610,000
Fair value - Level 2	620,675		641,598

As of September 30, 2014, the Company used trading prices of 98.00% to calculate the fair value of the Term Loan, and 101.75% to calculate the fair value of the 7.75% Senior Notes.

As of December 31, 2013, the Company used trading prices of 100.00% to calculate the fair value of the Term Loan and the Securitization Facility, and 105.18% to calculate the fair value of the 7.75% Senior Notes.

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Stock-Based Compensation Expense

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation Expense

Stock-Based Compensation Expense

On February 16, 2012, the Company granted 161,724 shares of time-vesting restricted Class A common stock, with an aggregate grant date fair value of $0.6 million, to the non-employee directors of the Company with a cliff vesting term of one year. In addition, on February 16, 2012, the Company granted time-vesting stock options to purchase 1.4 million shares of Class A common stock to certain employees, with an aggregate grant date fair value of $3.3 million. The options have an exercise price of $4.34 per share, with 30% of the awards having vested on each of September 16, 2012 and February 16, 2013, and 20% having vested on February 16, 2014 and the final 20% vesting on February 16, 2015.

On December 27, 2012, the Company issued stock options to an officer of the Company exercisable for 0.8 million shares of Class A common stock with an aggregate grant date fair value of $1.1 million. The options have an exercise price of $4.34 per share, and provide for vesting on each of the first four anniversaries of the date of grant, with 30% of the award vesting on each of the first two anniversaries thereof, and 20% of the award vesting on each of the next two anniversaries thereof.

On May 9, 2013, the Company granted 168,540 shares of time-vesting restricted Class A common stock, with an aggregate grant fair value of $0.6 million, to the non-employee directors of the Company with a cliff vesting term of one year.

On May 22, 2014, the Company granted 93,312 shares of time-vesting restricted Class A common stock, with an aggregate grant fair value of $0.6 million, to the non-employee directors of the Company with a cliff vesting term of one year.

During the three months ended September 30, 2014, the Company granted 0.3 million stock options with an aggregate grant date fair value of $1.0 million. During the nine months ended September 30, 2014, the Company granted 0.7 million stock options with an aggregate grant date fair value of $2.7 million. The options range in exercise price from $5.56 to $7.74 per share, and provide for vesting on each of the first four anniversaries of the date of grant, with 30% of the award vesting on each of the first two anniversaries thereof, and 20% of the award vesting on each of the next two anniversaries thereof.

For the three and nine months ended September 30, 2014, and 2013, the Company recognized approximately $4.4 million, $12.6 million, $2.3 million and $7.4 million, respectively, in stock-based compensation expense related to equity awards. 

As of September 30, 2014, unrecognized stock-based compensation expense of approximately $30.4 million related to equity awards is expected to be recognized over a weighted average remaining life of 2.42 years. Unrecognized stock-based compensation expense for equity awards will be adjusted for future changes in estimated forfeitures.

The total fair value of restricted stock awards that vested during the three and nine months ended September 30, 2014 was $0.0 million and $2.1 million, respectively. The total fair value of restricted stock awards that vested during each of the three and nine months ended September 30, 2013 was $0.0 million and $1.6 million, respectively. 1.3 million and 0.1 million stock options were exercised during the nine months ended September 30, 2014 and 2013, respectively.

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Acquisitions and Dispositions Summary of Preliminary Purchase Price Allocation of Assets Sold (Details) (Townsquare Transaction, USD $) In Thousands, unless otherwise specified	0 Months Ended
	Nov. 14, 2013	Nov. 14, 2013
Business Acquisition [Line Items]
Current assets		$ 1,860
Property and equipment		6,345
Goodwill		10,200
Other assets		246
Current liabilities		(520)
Total purchase price	32,183
Less: Carrying value of stations transferred		(159,053)
Add: Cash received	235,028
Gain on asset exchange	108,158
Broadcast licenses
Business Acquisition [Line Items]
Intangible assets	13,500	13,500
Other intangibles
Business Acquisition [Line Items]
Intangible assets	$ 552	$ 552

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Stockholders' Equity - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended				1 Months Ended		3 Months Ended				0 Months Ended					9 Months Ended
	Jun. 30, 2014	Sep. 30, 2014 Class_Of_Stock	Sep. 16, 2011	Dec. 31, 2011 Citadel Acquisition	Jun. 30, 2009 2009 warrants	Sep. 30, 2014 2009 warrants	Sep. 30, 2014 Company Warrants	Sep. 30, 2014 Equity Investment	Sep. 16, 2011 Equity Investment	Sep. 16, 2011 Crestview Warrants	Oct. 16, 2013 Class A common stock	Sep. 30, 2014 Class A common stock	Dec. 31, 2013 Class A common stock	Oct. 16, 2013 Class A common stock	Sep. 16, 2011 Class A common stock Citadel Acquisition	Sep. 30, 2014 Class A common stock Minimum	Sep. 30, 2014 Class B common stock	Dec. 31, 2013 Class B common stock	Sep. 30, 2014 Class C common stock	Dec. 31, 2013 Class C common stock	Sep. 30, 2014 Series A Redeemable Preferred Stock	Oct. 16, 2013 Series B cumulative redeemable preferred stock
Class of Stock [Line Items]
Total stock dividend authorized to issue		1,450,644,871
Number of classes of stock		4
Common stock, shares authorized												750,000,000	750,000,000				600,000,000	600,000,000	644,871	644,871
Preferred stock, shares authorized																					100,000,000
Par value of Preferred stock shares			$ 0.01																		$ 0.01
Common stock, shares issued												254,149,893	222,399,019	18,860,000	71,700,000		0	15,424,944	644,871	644,871
Number of shares with option to purchase											2,460,000
Purchase price per share											$ 5.00
Net proceeds after underwriting discounts and commissions and estimated offering expenses											$ 89.8
Cumulative redeemable preferred stock																						78.0
Class A common stock following conversion																4.99%
Shares of common stock converted																	3,300,000
Warrants issued					1,300,000
Exercisable price of warrants to purchase common stock					$ 1.17					$ 4.34
Warrants outstanding						500,000	2,200,000	7,800,000	7,800,000
Warrants held in reserve for issuance				2,400,000
Shares issued from reserve due to closing of Citadel Bankruptcy	2,400,000
Value of shares issued from reserve due to closing of Citadel Bankruptcy	$ 25.0
Company Warrants were converted into shares of Class A common stock since issuance							300,000

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Description of Business, Interim Financial Data and Basis of Presentation: (Policies)

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

Description of Business

Cumulus Media Inc. (and its consolidated subsidiaries, except as the context may otherwise require, “Cumulus,” “Cumulus Media,” “we,” “us,” “our,” or the “Company”) is a Delaware corporation, organized in 2002, and successor by merger to an Illinois corporation with the same name that had been organized in 1997.

Interim Financial Data

Interim Financial Data

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company and the notes related thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The accompanying unaudited condensed consolidated financial statements include the condensed consolidated accounts of Cumulus and its wholly-owned subsidiaries, with all intercompany balances and transactions eliminated in consolidation. The December 31, 2013 condensed balance sheet data was derived from audited financial statements. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of our results of operations for, and financial condition as of the end of, the interim periods have been made. The results of operations for the three and nine months ended September 30, 2014, the cash flows for the nine months ended September 30, 2014 and the Company’s financial condition as of September 30, 2014, are not necessarily indicative of the results of operations or cash flows that can be expected for, or the Company’s financial condition that can be expected as of the end of, any other interim period or for the fiscal year ending December 31, 2014.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to bad debts, intangible assets, derivative financial instruments, income taxes, stock-based compensation, contingencies, litigation and purchase price allocations. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual amounts and results may differ materially from these estimates.

Assets Held for Sale

Assets Held for Sale

On September 16, 2014, the Company entered into an agreement to sell certain land and buildings to a third party. The agreement is subject to various terms including a 60 day due diligence period. The carrying value of the identified assets have been classified as held for sale in the unaudited condensed consolidated balance sheet at September 30, 2014. The estimated fair value of the land and buildings is in excess of the carrying value.

Reclassifications

Reclassifications

Certain account balances in the 2013 periods have been reclassified to conform with classifications currently in use.

In the accompanying unaudited condensed consolidated statements of operations the Company separately presents content costs and other direct operating expenses as operating expense categories. In certain of the Company's historical disclosures, those line items were presented on a combined basis within the direct operating expenses line item in the statement of operations. Content costs consist of all costs related to the licensing, acquisition and development of the Company's programming. Other direct operating expenses consist of expenses related to the distribution and monetization of the Company's content across its platform and overhead expenses. There were no other costs included in direct operating expenses in 2013.

These reclassifications had no effect on previously reported results of operations or retained earnings.

Recent Accounting Standards Updates

Adoption of New Accounting Standards

ASU 2012-02. In July 2012, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2012-02. The amendments in this ASU give companies the option to perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired rather than calculating the fair value of the indefinite-lived intangible asset. The Company adopted this guidance effective January 1, 2013. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

ASU 2013-01. In January 2013, the FASB issued ASU 2013-01. The amendments in this ASU require companies to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The Company adopted this guidance effective January 1, 2013. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements.

ASU 2013-04. In February 2013, the FASB issued ASU 2013-04, which provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements where the total obligation is fixed at the reporting date, and for which no specific guidance currently exists. The Company adopted this guidance effective January 1, 2014. The adoption of this guidance did not have an impact on the Company's consolidated financial statements.

ASU 2013-11. In July 2013, the FASB issued ASU 2013-11. The amendments in this ASU clarify when a liability related to an unrecognized tax benefit should be presented in the financial statements as a reduction to the related deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. The Company adopted this guidance effective January 1, 2014. The adoption of this guidance did not have an impact on the Company's consolidated financial statements.

Recent Accounting Standards Updates

ASU 2014-08. In April 2014, the FASB issued ASU 2014-08. Under this ASU, only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. This ASU (1) expands the disclosure requirements for disposals that meet the definition of a discontinued operation, (2) requires entities to disclose information about disposals of individually significant components, (3) defines “discontinued operations” similarly to how it is defined under International Financial Reporting Standards ("IFRS") 5, and (4) requires entities to expand their disclosures about discontinued operations to include more information about assets, liabilities, income and expenses. In addition, this ASU will also require entities to disclose the pre-tax income attributable to a disposal of “an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements.” The ASU is effective prospectively for all disposals (or classifications as held for sale) that occur within annual periods beginning on or after December 15, 2014 and interim periods within those years. Early adoption is permitted. The Company is currently assessing the expected impact, if any, that this ASU will have on the consolidated financial statements.

ASU 2014-09. In May 2014, the FASB issued ASU 2014-09. The amended guidance under this ASU outlines a single comprehensive revenue model for entities to use in accounting for revenue arising from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the single comprehensive revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” Entities have the option of using either a full retrospective or modified approach to adopt the guidance. The ASU is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2016 (early adoption is not permitted). The Company is currently assessing the expected impact, if any, that this ASU will have on the consolidated financial statements.

ASU 2014-15. In August 2014, the FASB issued ASU 2014-15. The amendments in this update provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. The amendments in this ASU are effective for public and nonpublic entities for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The Company is currently assessing the expected impact, if any, that this ASU will have on the consolidated financial statements.

Acquisitions and disposition

WestwoodOne Acquisition

On December 12, 2013, Cumulus completed the acquisition of WestwoodOne, Inc. (formerly known as Dial Global, Inc., "WestwoodOne"), an independent, full-service radio network company offering news, sports, formats, prep services, talk and music programming, jingles and imaging, and special events, as well as national advertising sales representation (the "WestwoodOne Acquisition"). The WestwoodOne Acquisition added sports, news, talk, music and programming services content - enabling the Company to provide an even broader array of programming content to approximately 10,000 U.S. radio stations, other media platforms and international platforms. Content acquired through the WestwoodOne Acquisition included NFL, NCAA basketball, NASCAR, CBS News and other popular programming.

Pamal Broadcasting Asset Purchase

On January 17, 2013, the Company completed the acquisition of WMEZ-FM and WXBM-FM from Pamal Broadcasting Ltd. for a purchase price of $6.5 million (the "Pamal Broadcasting Asset Purchase"). The transaction was part of the Company’s ongoing efforts to focus on radio stations in larger markets and geographically strategic regional clusters.

Fair Value Measurement

The three levels of the fair value hierarchy to be applied to financial instruments when determining fair value are described below:

Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access;

Level 2 — Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and

Level 3 — Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s financial assets and liabilities are measured at fair value on a recurring basis and non-financial assets and liabilities are measured at fair value on a non-recurring basis.

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Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Components of Long-term Debt

The Company’s long-term debt consisted of the following as of September 30, 2014 and December 31, 2013 (dollars in thousands):

	September 30, 2014			December 31, 2013
Term Loan and Securitization Facility:
Term loan	$	1,953,875		$	2,025,000
Securitization facility	—			25,000
Less: term loan discount	(29,888		)	(33,107		)
Total Term Loan and Securitization Facility	1,923,987			2,016,893
7.75% senior notes	610,000			610,000
Less: Current portion of long-term debt	—			(5,937		)
Long-term debt, net	$	2,533,987		$	2,620,956

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Quantitative Information Regarding Significant Unobservable Inputs (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended					9 Months Ended
	Sep. 30, 2014 Contingent Consideration Condition	Sep. 30, 2014 Fair Value, Measurements, Recurring	Dec. 31, 2013 Fair Value, Measurements, Recurring	Sep. 30, 2014 Significant Unobservable Inputs (Level 3) Fair Value, Measurements, Recurring	Dec. 31, 2013 Significant Unobservable Inputs (Level 3) Fair Value, Measurements, Recurring	Sep. 30, 2014 Significant Unobservable Inputs (Level 3) Fair Value, Measurements, Recurring Contingent Consideration Condition
Fair Value Assets And Liabilities Measured On Unobservable Inputs [Line Items]
Fair Value	$ 31	$ 181	$ 31	$ 181	$ 31
Fair Value						$ 150
Valuation Technique	Income Approach
Total term	5 years					2 years
Conditions	3
Conditions						4
Bond equivalent yield discount rate	0.10%

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Location and Fair Value Amounts of Derivatives in Consolidated Balance Sheets (Detail) (Derivatives not designated as hedging instruments:, USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Derivatives, Fair Value [Line Items]
Total	$ 0	$ 22
Interest Rate Cap | Other assets
Derivatives, Fair Value [Line Items]
Fair Value, Other long-term assets	$ 0	$ 22

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Condensed Consolidated Statements Of Operations (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement [Abstract]
Stock-based compensation expense	$ 4,399	$ 2,259	$ 12,645	$ 7,393

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Restricted Cash

9 Months Ended

Sep. 30, 2014

Cash and Cash Equivalents [Abstract]

Restricted Cash

Restricted Cash

As of September 30, 2014 and December 31, 2013, the Company’s balance sheet included approximately $10.3 million and $6.1 million, respectively, in restricted cash, of which $0.6 million relates to securing the maximum exposure generated by automated clearinghouse transactions in the Company's operating bank accounts and as dictated by the Company's bank's internal policies with respect to cash. At September 30, 2014 and December 31, 2013, the Company held $9.7 million and $5.5 million, respectively, relating to collateralizing standby letters of credit pertaining to certain leases and insurance policies.

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Supplemental Condensed Consolidating Financial Information Condensed Consolidating Statements of Operations (Parenthetical) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Stock-based compensation expense	$ 4,399	$ 2,259	$ 12,645	$ 7,393

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Financial Assets and Liabilities and Non-Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

Fair values as of September 30, 2014 and December 31, 2013 were as follows (dollars in thousands):

				Fair Value Measurements at September 30, 2014 Using
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Equity interest in Pulser Media (2)	$	10,105		$	—	$	—	$	10,105
Total assets	$	10,105		$	—	$	—	$	10,105
Financial liabilities:
Other current liabilities
Contingent consideration (3)	$	(181	)	$	—	$	—	$	(181	)
Total liabilities	$	(181	)	$	—	$	—	$	(181	)

				Fair Value Measurements at December 31, 2013 Using
	Total Fair Value			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Interest Rate Cap (1)	$	22		$	—	$	22	$	—
Equity interest in Pulser Media (2)	104			—		—		104
Total assets	$	126		$	—	$	22	$	104
Financial liabilities:
Other current liabilities
Contingent consideration (3)	$	(31	)	$	—	$	—	$	(31	)
Total liabilities	$	(31	)	$	—	$	—	$	(31	)

(1) Pursuant to the Interest Rate Cap, the Company pays a fixed interest rate on a $71.3 million notional amount of its term loan. The fair value of the Interest Rate Cap is determined based on a discounted cash flow analysis of the expected future cash flows using observable inputs, including interest rates and yield curves. Derivative valuations incorporate adjustments that are necessary to reflect the credit risk.

(2) On September 13, 2013, the Company and Pulser Media (the parent company of Rdio) ("Pulser"), entered into a five year strategic promotional partnership and sales arrangement (the "Rdio Agreement"). In exchange for $75 million of promotional commitments over five years, Cumulus will receive a 15% equity interest in Pulser, with the opportunity to earn additional equity, see Note 13 "Commitments and Contingencies". The fair value of the equity interest in Pulser was determined using inputs that are supported by little or no market activity (a Level 3 measurement). At September 30, 2014 the fair value of the equity interest in Pulser approximated its cost basis and the Company determined that the investment was not impaired.

(3) The fair value of the contingent consideration was determined using inputs that are supported by little or no market activity (a Level 3 measurement). Contingent consideration represents the fair value of the additional cash consideration potentially payable as part of the WFME Asset Exchange and Wise Brothers Acquisition. See Note 2 “Acquisitions and Dispositions”.

Schedule of Gross Amounts and Fair Value

The following table shows the gross amount and fair value of the Company’s Term Loan, Securitization Facility and 7.75% Senior Notes (dollars in thousands):

	September 30, 2014		December 31, 2013
Term Loan:
Carrying value	$	1,953,875	$	2,025,000
Fair value - Level 2	1,914,798		2,025,000
Securitization Facility:
Carrying value	$	—	$	25,000
Fair value - Level 2	—		25,000
7.75% Senior Notes:
Carrying value	$	610,000	$	610,000
Fair value - Level 2	620,675		641,598

WFME Asset Exchange

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Quantitative Information Regarding Significant Unobservable Inputs

Quantitative information regarding the significant unobservable inputs related to the WFME Asset Exchange contingent consideration as of September 30, 2014 was as follows (dollars in thousands):

Fair Value		Valuation Technique	Unobservable Inputs
$	31	Income Approach	Total term	5 years
			Conditions	3
			Bond equivalent yield discount rate	0.1	%

Wise Brother Media Inc

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Quantitative Information Regarding Significant Unobservable Inputs

Quantitative information regarding the significant unobservable inputs related to the Wise Brothers Acquisition contingent consideration as of September 30, 2014 was as follows (dollars in thousands):

Fair Value		Valuation Technique	Unobservable Inputs
$	150	Income Approach	Total term	2 years
			Conditions	4

Equity interest in Pulser Media

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of Components of Change in Fair Value

The reconciliation below contains the components of the change in fair value associated with the equity interest in Pulser from January 1, 2014 to September 30, 2014 (dollars in thousands):

Description	Equity Interest in Pulser
Fair value balance at January 1, 2014	$	104
Add: Additions to equity interest in Pulser	10,001
Fair value balance at September 30, 2014	$	10,105

Contingent Consideration

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of Components of Change in Fair Value

The reconciliation below contains the components of the change in continuing contingency associated with the contingent consideration from January 1, 2014 to September 30, 2014 (dollars in thousands):

Description	Contingent Consideration
Fair value balance at January 1, 2014	$	(31	)
Add: Wise Brothers Acquisition	(150		)
Fair value balance at September 30, 2014	$	(181	)

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Changes in Intangible Assets Other Than Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Indefinite-lived Intangible Assets [Roll Forward]
Indefinite-Lived Intangible Assets, Beginning Balance	$ 1,596,337	$ 1,602,373
Purchase price allocation adjustments	963
Indefinite- Lived, Acquisition	0	61,730
Indefinite-Lived, Disposition	(585)	(67,766)
Indefinite-Lived Intangible Assets, Ending Balance	1,596,715	1,596,337
Definite-Lived Intangible Assets, Beginning Balance		258,303
Definite-Lived, Acquisition	6,066	152,522
Definite-Lived, Purchase price allocation adjustments	0
Definite-Lived, Disposition	(70)	(8,627)
Definite-Lived Intangible Assets, Ending Balance	261,405
Intangible Assets Total, Beginning Balance	1,911,827	1,860,676
Total Acquisition	6,066	214,252
Total, Disposition	(655)	(76,393)
Amortization	(60,081)	(86,708)
Intangible Assets Total, Ending Balance	1,858,120	1,911,827
Adjusted acquired intangible assets
Indefinite-lived Intangible Assets [Roll Forward]
Definite-Lived Intangible Assets, Ending Balance		$ 315,490

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Supplemental Condensed Consolidating Financial Information

9 Months Ended

Sep. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Condensed Consolidating Financial Information

Supplemental Condensed Consolidating Financial Information

At September 30, 2014, Cumulus (the "Parent Guarantor") and certain of its 100% owned subsidiaries (such subsidiaries, the “Subsidiary Guarantors”) provided guarantees of the obligations of Cumulus Holdings (the "Subsidiary Issuer") under the 7.75% Senior Notes. These guarantees are full and unconditional (subject to customary release provisions) as well as joint and several. Certain of the Subsidiary Guarantors may be subject to restrictions on their respective ability to distribute earnings to Cumulus Holdings or the Parent Guarantor. Not all of the subsidiaries of Cumulus and Cumulus Holdings guarantee the 7.75% Senior Notes (such non-guaranteeing subsidiaries, collectively, the “Subsidiary Non-guarantors”).

The following tables present (i) unaudited condensed consolidating statements of operations for the three and nine months ended September 30, 2014 and 2013, (ii) unaudited condensed consolidating balance sheets as of September 30, 2014 and December 31, 2013, and (iii) unaudited condensed consolidating statements of cash flows for the nine months ended September 30, 2014 and 2013, of each of the Parent Guarantor, Cumulus Holdings, the Subsidiary Guarantors, and the Subsidiary Non-guarantors. The results have been adjusted for discontinued operations (see Note 3 "Discontinued Operations").

Investments in consolidated subsidiaries are held primarily by the Parent Guarantor in the net assets of its subsidiaries and have been presented using the equity method of accounting. The “Eliminations” entries in the following tables primarily eliminate investments in subsidiaries and intercompany balances and transactions. The columnar presentations in the following tables are not consistent with the Company’s business groups; accordingly, this basis of presentation is not intended to present the Company’s financial condition, results of operations or cash flows on a consolidated basis.

Revision to Prior Period Financial Statements

During the fourth quarter of 2013, Cumulus Media Inc. determined that it did not properly classify certain intercompany transactions in its supplemental condensed consolidating financial information footnote in previous 2013 interim periods. Specifically, the Company should have presented the changes in assets and liabilities within operating activities for the Parent Guarantor as intercompany transactions, net within financing activities. There was no impact on the condensed consolidated balance sheet or statement of income.

In accordance with accounting guidance found in ASC 250-10 (SEC Staff Accounting Bulletin No. 99, Materiality), the Company assessed the materiality of the errors and concluded that the errors were not material to any of the Company’s previously issued financial statements. As permitted by the accounting guidance found in ASC 250-10 (SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the Company has presented a revised condensed consolidated statement of cash flows for the nine months ended September 30, 2013 and will revise the interim condensed consolidated statements of cash flows in future quarterly filings.

Reclassifications

Certain account balances in the 2013 periods have been reclassified to conform with classifications currently in use.

In the accompanying unaudited condensed consolidating statements of operations the Company separately presents content costs and other direct operating expenses as operating expense categories. In certain of the Company's historical disclosures, those line items were presented on a combined basis within the direct operating expenses line item in the statement of operations. Content costs consist of all costs related to the licensing, acquisition and development of the Company's programming. Other direct operating expenses consist of expenses related to the distribution and monetization of the Company's content across its platform and overhead expenses. There were no other costs included in direct operating expenses in 2013.

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended September 30, 2014

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Net revenue	$	—		$	125		$	313,760		$	—		$	—		$	313,885
Operating expenses:
Content costs	—			—			106,574			—			—			106,574
Other direct operating expenses	—			—			119,455			409			—			119,864
Depreciation and amortization	—			428			28,715			—			—			29,143
LMA fees	—			—			2,021			—			—			2,021
Corporate expenses (including stock-based compensation expense of $4,399)	—			14,756			—			—			—			14,756
Gain on sale of assets or stations	—			—			(373		)	—			—			(373		)
Total operating expenses	—			15,184			256,392			409			—			271,985
Operating (loss) income	—			(15,059		)	57,368			(409		)	—			41,900
Non-operating (expense) income:
Interest expense	(2,184		)	(34,416		)	—			(47		)	—			(36,647		)
Interest income	—			—			352			—			—			352
Other income, net	—			—			443			—			—			443
Total non-operating (expense) income, net	(2,184		)	(34,416		)	795			(47		)	—			(35,852		)
(Loss) income before income taxes	(2,184		)	(49,475		)	58,163			(456		)	—			6,048
Income tax benefit (expense)	1,427			31,750			(37,008		)	323						(3,508		)
(Loss) income from continuing operations	(757		)	(17,725		)	21,155			(133		)	—			2,540
Earnings (loss) from consolidated subsidiaries	3,297			21,022			(133		)	—			(24,186		)	—
Net income (loss)	$	2,540		$	3,297		$	21,022		$	(133	)	$	(24,186	)	$	2,540

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine Months Ended September 30, 2014

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Net revenue	$	—		$	354		$	933,822		$	—		$	—		$	934,176
Operating expenses:
Content costs	—			—			316,868			—			—			316,868
Other direct operating expenses	—			—			352,036			1,552			—			353,588
Depreciation and amortization	—			1,346			85,749			—			—			87,095
LMA fees	—			—			5,226			—			—			5,226
Corporate expenses (including stock-based compensation expense of $12,645)	—			53,215			—			—			—			53,215
Gain on sale of assets or stations	—			—			(1,271		)	—			—			(1,271		)
Total operating expenses	—			54,561			758,608			1,552			—			814,721
Operating (loss) income	—			(54,207		)	175,214			(1,552		)	—			119,455
Non-operating (expense) income:
Interest expense	(7,165		)	(101,999		)	—			(216		)	—			(109,380		)
Interest income	—			—			1,024			—			—			1,024
Other income, net	—			—			3,972			—			—			3,972
Total non-operating (expense) income, net	(7,165		)	(101,999		)	4,996			(216		)	—			(104,384		)
(Loss) income before income taxes	(7,165		)	(156,206		)	180,210			(1,768		)	—			15,071
Income tax benefit (expense)	3,168			69,064			(79,677		)	782						(6,663		)
(Loss) income from continuing operations	(3,997		)	(87,142		)	100,533			(986		)	—			8,408
Earnings (loss) from consolidated subsidiaries	12,405			99,547			(986		)	—			(110,966		)	—
Net income (loss)	$	8,408		$	12,405		$	99,547		$	(986	)	$	(110,966	)	$	8,408

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended September 30, 2013

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Net revenue	$	—		$	917		$	261,618		$	—		$	—		$	262,535
Operating expenses:
Content costs	—			—			65,559			—			—			65,559
Other direct operating expenses	—			—			98,674			528			—			99,202
Depreciation and amortization	—			471			27,143			—			—			27,614
LMA fees	—			—			609			—			—			609
Corporate expenses (including stock-based compensation expense of $2,259)	—			11,757			—			—			—			11,757
Loss on sale of assets or stations	—			—			(5,198		)	—			—			(5,198		)
Gain on derivative instrument	—			—			172			—			—			172
Total operating expenses	—			12,228			186,959			528			—			199,715
Operating (loss) income	—			(11,311		)	74,659			(528		)	—			62,820
Non-operating (expense) income:
Interest expense	(2,378		)	(43,124		)	—			—			—			(45,502		)
Interest income	—			—			308			—			—			308
Other expense, net	—			—			(139		)	—			—			(139		)
Total non-operating (expense) income, net	(2,378		)	(43,124		)	169			—			—			(45,333		)
(Loss) income before income taxes	(2,378		)	(54,435		)	74,828			(528		)	—			17,487
Income tax benefit (expense)	—			—			49,113			(56,108		)	—			(6,995		)
(Loss) income from continuing operations	(2,378		)	(54,435		)	123,941			(56,636		)	—			10,492
(Loss) income from discontinued operations, net of taxes	—			—			(44,094		)	40,639			—			(3,455		)
Earnings (loss) from consolidated subsidiaries	9,415			63,850			(15,997		)	—			(57,268		)	—
Net income (loss)	$	7,037		$	9,415		$	63,850		$	(15,997	)	$	(57,268	)	$	7,037

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Nine Months Ended September 30, 2013

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Net revenue	$	—		$	917		$	749,763		$	—		$	—		$	750,680
Operating expenses:
Content costs	—			—			189,765			—			—			189,765
Other direct operating expenses	—			—			291,035			1,541			—			292,576
Depreciation and amortization	—			1,451			81,363			—			—			82,814
LMA fees	—			—			2,293			—			—			2,293
Corporate expenses (including stock-based compensation expense of $7,393)	—			33,517			—			—			—			33,517
Loss on sale of assets or stations	—			—			(3,662		)	—			—			(3,662		)
Gain on derivative instrument	—			—			(2,672		)	—			—			(2,672		)
Total operating expenses	—			34,968			558,122			1,541			—			594,631
Operating (loss) income	—			(34,051		)	191,641			(1,541		)	—			156,049
Non-operating (expense) income:
Interest expense	(8,186		)	(126,035		)	—			—			—			(134,221		)
Interest income	—			—			942			—			—			942
Loss on early extinguishment of debt	—			(4,539		)	—			—			—			(4,539		)
Other expense, net	—			—			(247		)	—			—			(247		)
Total non-operating (expense) income, net	(8,186		)	(130,574		)	695			—			—			(138,065		)
(Loss) income before income taxes	(8,186		)	(164,625		)	192,336			(1,541		)	—			17,984
Income tax benefit (expense)	—			—			13,276			(32,319		)	—			(19,043		)
(Loss) income from continuing operations	(8,186		)	(164,625		)	205,612			(33,860		)	—			(1,059		)
Income from discontinued operations, net of taxes	—			—			17,795			8,412			—			26,207
Earnings (loss) from consolidated subsidiaries	33,334			197,959			(25,448		)	—			(205,845		)	—
Net income (loss)	$	25,148		$	33,334		$	197,959		$	(25,448	)	$	(205,845	)	$	25,148

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2014

(Dollars in thousands, except for share and per share data)

(Unaudited)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings  Inc. (Subsidiary  Issuer)		Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—		$	26,489	$	268		$	—		$	—		$	26,757
Restricted cash	—			10,346		—			—			—			10,346
Accounts receivable, less allowance for doubtful accounts of $5,043	—			—		—			239,578			—			239,578
Trade receivable	—			—		3,733			—			—			3,733
Asset held for sale				—		15,007			—			—			15,007
Prepaid expenses and other current assets	—			24,820		22,203			—			—			47,023
Total current assets	—			61,655		41,211			239,578			—			342,444
Property and equipment, net	—			2,060		222,660			—			—			224,720
Broadcast licenses	—			—		—			1,596,715			—			1,596,715
Other intangible assets, net	—			—		261,405			—			—			261,405
Goodwill	—			—		1,255,519			—			—			1,255,519
Investment in consolidated subsidiaries	616,828			4,160,697		1,121,176			—			(5,898,701		)	—
Intercompany receivables, net	—			84,391		1,399,949			—			(1,484,340		)	—
Other assets	—			44,502		20,559			791			—			65,852
Total assets	$	616,828		$	4,353,305	$	4,322,479		$	1,837,084		$	(7,383,041	)	$	3,746,655
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	—		$	31,689	$	96,197		$	—		$	—		$	127,886
Trade payable	—			—		4,259			—			—			4,259
Total current liabilities	—			31,689		100,456			—			—			132,145
Long-term debt, excluding 7.75% Senior Notes	—			1,923,987		—			—			—			1,923,987
7.75% Senior Notes	—			610,000		—			—			—			610,000
Other liabilities	—			10,430		61,326			—			—			71,756
Intercompany payables, net	83,600			1,160,371		—			240,369			(1,484,340		)	—
Deferred income taxes	—			—		—			475,539			—			475,539
Total liabilities	83,600			3,736,477		161,782			715,908			(1,484,340		)	3,213,427
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share; 750,000,000 shares authorized; 254,149,893 shares issued and 231,555,276 shares outstanding	2,541			—		—			—			—			2,541
Class C common stock, par value $0.01 per share; 644,871 shares authorized, issued and outstanding	6			—		—			—			—			6
Treasury stock, at cost, 22,594,617 shares	(231,517		)	—		—			—			—			(231,517		)
Additional paid-in-capital	1,595,910			238,672		4,219,656			2,095,935			(6,554,263		)	1,595,910
Accumulated (deficit) equity	(833,712		)	378,156		(58,959		)	(974,759		)	655,562			(833,712		)
Total stockholders’ equity (deficit)	533,228			616,828		4,160,697			1,121,176			(5,898,701		)	533,228
Total liabilities and stockholders’ equity (deficit)	$	616,828		$	4,353,305	$	4,322,479		$	1,837,084		$	(7,383,041	)	$	3,746,655

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2013

(Dollars in thousands, except for share and per share data)

(Unaudited)

	Cumulus Media Inc. (Parent Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)		Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Assets
Current assets:
Cash and cash equivalents	$	11,804		$	20,988	$	—		$	—		$	—		$	32,792
Restricted cash	—			6,146		—			—			—			6,146
Accounts receivable, less allowance for doubtful accounts of $5,306	—			—		—			264,805			—			264,805
Trade receivable	—			—		4,419			—			—			4,419
Prepaid expenses and other current assets	—			5,948		62,945			—			—			68,893
Total current assets	11,804			33,082		67,364			264,805			—			377,055
Property and equipment, net	—			3,272		251,430			—			—			254,702
Broadcast licenses	—			—		—			1,596,337			—			1,596,337
Other intangible assets, net	—			—		315,490			—			—			315,490
Goodwill	—			—		1,256,741			—			—			1,256,741
Investment in consolidated subsidiaries	589,163			3,824,690		1,118,952			—			(5,532,805		)	—
Intercompany receivables, net	—			88,227		1,011,218			24,090			(1,123,535		)	—
Other assets	—			46,774		22,440			896			—			70,110
Total assets	$	600,967		$	3,996,045	$	4,043,635		$	1,886,128		$	(6,656,340	)	$	3,870,435
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses	$	—		$	24,966	$	121,521		$	50		$	—		$	146,537
Trade payable	—			—		3,846			—			—			3,846
Current portion of long-term debt	—			5,937		—			—			—			5,937
Total current liabilities	—			30,903		125,367			50			—			156,320
Long-term debt, excluding 7.75% Senior Notes	—			1,985,956		—			—			—			1,985,956
7.75% Senior Notes	—			610,000		—			—			—			610,000
Secured loan	—			—		—			25,000			—			25,000
Other liabilities	—			10,430		69,483			—			—			79,913
Intercompany payables, net	88,227			769,593		—			265,715			(1,123,535		)	—
Deferred income taxes	—			—		24,095			476,411			—			500,506
Total liabilities	88,227			3,406,882		218,945			767,176			(1,123,535		)	3,357,695
Stockholders’ equity (deficit):
Class A common stock, par value $0.01 per share; 750,000,000 shares authorized; 222,399,019 shares issued and 198,193,819 shares outstanding	2,223			—		—			—			—			2,223
Class B common stock, par value $0.01 per share; 600,000,000 shares authorized; 15,424,944 shares issued and outstanding	154			—		—			—			—			154
Class C common stock, par value $0.01 per share; 644,871 shares authorized, issued and outstanding	6			—		—			—			—			6
Treasury stock, at cost, 24,205,200 shares	(251,193		)	—		—			—			—			(251,193		)
Additional paid-in-capital	1,603,669			223,412		3,983,196			2,092,725			(6,299,333		)	1,603,669
Accumulated (deficit) equity	(842,119		)	365,751		(158,506		)	(973,773		)	766,528			(842,119		)
Total stockholders’ equity (deficit)	512,740			589,163		3,824,690			1,118,952			(5,532,805		)	512,740
Total liabilities, redeemable preferred stock and stockholders’ equity (deficit)	$	600,967		$	3,996,045	$	4,043,635		$	1,886,128		$	(6,656,340	)	$	3,870,435

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2014

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Cash flows from operating activities:
Net income (loss)	$	8,408		$	12,405		$	99,547		$	(986	)	$	(110,966	)	$	8,408
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	—			1,346			85,749			—			—			87,095
Amortization of debt issuance costs/discounts	—			6,886			—			143			—			7,029
Provision for doubtful accounts	—			—			2,468			—			—			2,468
Gain on sale of assets or stations	—			—			(1,271		)	—			—			(1,271		)
Fair value adjustment of derivative instruments	—			21			—			—			—			21
Deferred income taxes	(3,168		)	(69,064		)	79,677			(782		)	—			6,663
Stock-based compensation expense	—			12,645			—			—			—			12,645
(Earnings) loss from consolidated subsidiaries	(12,405		)	(99,547		)	986			—			110,966			—
Changes in assets and liabilities	—			258,974			(275,568		)	(8,375		)	—			(24,969		)
Net cash (used in) provided by operating activities	(7,165		)	123,666			(8,412		)	(10,000		)	—			98,089
Cash flows from investing activities
Proceeds from sale of assets or stations	—			—			15,718			—			—			15,718
Restricted cash	—			(4,200		)	—			—			—			(4,200		)
Acquisition less cash required	—			—			(5,500		)	—			—			(5,500		)
Capital expenditures	—			(134		)	(13,267		)	—			—			(13,401		)
Net cash used in investing activities	—			(4,334		)	(3,049		)	—			—			(7,383		)
Cash flows from financing activities:
Intercompany transactions, net	(5,364		)	(41,365		)	11,729			35,000			—			—
Repayments of borrowings under term loans and revolving credit facilities	—			(71,125		)	—			(35,000		)	—			(106,125		)
Proceeds from borrowings under term loans and revolving credit facilities	—			—			—			10,000			—			10,000
Tax withholding payments on behalf of employees	—			(1,320		)	—			—			—			(1,320		)
Proceeds from exercises of warrants	106			—			—			—			—			106
Proceeds from exercises of options	619			—			—			—			—			619
Deferred financing costs	—			(21		)	—			—			—			(21		)
Net cash (used in) provided by financing activities	(4,639		)	(113,831		)	11,729			10,000			—			(96,741		)
(Decrease) increase in cash and cash equivalents	(11,804		)	5,501			268			—			—			(6,035		)
Cash and cash equivalents at beginning of period	11,804			20,988			—			—			—			32,792
Cash and cash equivalents at end of period	$	—		$	26,489		$	268		$	—		$	—		$	26,757

CUMULUS MEDIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2013

(Dollars in thousands)

(Unaudited)

	Cumulus Media Inc. (Parent  Guarantor)			Cumulus Media Holdings Inc. (Subsidiary  Issuer)			Subsidiary Guarantors			Subsidiary Non-guarantors			Eliminations			Total Consolidated
Cash flows from operating activities:
Net income (loss)	$	25,148		$	33,334		$	197,959		$	(25,448	)	$	(205,845	)	$	25,148
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	—			1,451			85,358			—			—			86,809
Amortization of debt issuance costs/discount	—			7,515			—			—			—			7,515
Provision for doubtful accounts	—			—			2,002			—			—			2,002
Loss on sale of assets or stations	—			—			(3,556		)	—			—			(3,556		)
Loss on early extinguishment of debt	—			4,539			—			—			—			4,539
Fair value adjustment of derivative instruments	—			(27		)	(2,630		)	—			—			(2,657		)
Deferred income taxes	—			—			(14,249		)	23,908			—			9,659
Stock-based compensation expense	—			7,393			—			—			—			7,393
(Earnings) loss from consolidated subsidiaries	(33,334		)	(197,959		)	25,448			—			205,845			—
Changes in assets and liabilities	—			22,787			(33,512		)	1,540			—			(9,185		)
Net cash (used in) provided by operating activities	(8,186		)	(120,967		)	256,820			—			—			127,667
Cash flows from investing activities:
Proceeds from sale of assets or stations	—			—			6,492			—			—			6,492
Restricted cash	—			2,192			—			—			—			2,192
Initial payment of Green Bay Option	—			—			(5,000		)	—			—			(5,000		)
Proceeds from exchange of asset or stations	—			—			(52,685		)	—			—			(52,685		)
Capital expenditures	—			(441		)	(8,007		)	—			—			(8,448		)
Net cash provided by (used in) investing activities	—			1,751			(59,200		)	—			—			(57,449		)
Cash flows from financing activities:
Intercompany transactions, net	(68,787		)	272,658			(203,871		)	—			—			—
Repayments of borrowings under term loans and revolving credit facilities	—			(88,931		)	—			—			—			(88,931		)
Tax withholding payments on behalf of employees	—			(337		)	—			—			—			(337		)
Redemption of Series A preferred stock	(73,150		)	—			—			—			—			(73,150		)
Proceeds from issuance of Series B preferred stock	77,241			—			—			—			—			77,241
Series A Preferred stock dividends	(9,395		)	—			—			—			—			(9,395		)
Proceeds from exercises of warrants	614			—			—			—			—			614
Proceeds from exercise options	64			—			—			—			—			64
Deferred financing costs	—			(204		)	—			—			—			(204		)
Net cash (used in) provided by financing activities	(73,413		)	183,186			(203,871		)	—			—			(94,098		)
(Decrease) increase in cash and cash equivalents	(81,599		)	63,970			(6,251		)	—			—			(23,880		)
Cash and cash equivalents at beginning of period	81,599			—			6,451			—			—			88,050
Cash and cash equivalents at end of period	$	—		$	63,970		$	200		$	—		$	—		$	64,170