Financial Information about Industry Segments

Meredith is a diversified media company focused primarily on service journalism. On the basis of products and services, the Company has established two reportable segments: national media and local media. The national media segment includes magazine publishing, customer relationship marketing, digital and mobile media, brand licensing, database-related activities, and other related operations. The local media segment consists primarily of the operations of network-affiliated television stations. Virtually all of the Company's revenues are generated in the U.S. and substantially all of the assets reside within the U.S. There are no material intersegment transactions.

There are two principal financial measures reported to the chief executive officer (the chief operating decision maker) for use in assessing segment performance and allocating resources. Those measures are operating profit and EBITDA. Operating profit for segment reporting, disclosed below, is revenues less operating costs and unallocated corporate expenses. Segment operating expenses include allocations of certain centrally incurred costs such as employee benefits, occupancy, information systems, accounting services, internal legal staff, and human resources administration. These costs are allocated based on actual usage or other appropriate methods, primarily number of employees. Unallocated corporate expenses are corporate overhead expenses not attributable to the operating groups. Interest income and expense are not allocated to the segments. In accordance with authoritative guidance on disclosures about segments of an enterprise and related information, EBITDA is not presented below.

Significant non-cash items included in segment operating expenses other than depreciation and amortization of fixed and intangible assets is the amortization of broadcast rights in the local media segment. Broadcast rights amortization totaled $17.6 million in fiscal 2017, $16.7 million in fiscal 2016, and $16.6 million in fiscal 2015.

Segment assets include intangible, fixed, and all other non-cash assets identified with each segment. Jointly used assets such as office buildings and information technology equipment are allocated to the segments by appropriate methods, primarily number of employees. Unallocated corporate assets consist primarily of cash and cash items, assets allocated to or identified with corporate staff departments, and other miscellaneous assets not assigned to a segment.

The following table presents financial information by segment:



Years ended June 30,	2017			2016			2015
(In thousands)
Revenues
National media	$	1,083,200		$	1,101,183		$	1,059,852
Local media	630,161			548,445			534,324
Total revenues	$	1,713,361		$	1,649,628		$	1,594,176

Segment profit (loss)
National media	$	146,541		$	(17,693	)	$	122,681
Local media	214,920			158,481			162,677
Unallocated corporate	(52,338		)	(10,179		)	(43,246		)
Income from operations	309,123			130,609			242,112
Interest expense, net	(18,789		)	(20,402		)	(19,352		)
Earnings before income taxes	$	290,334		$	110,207		$	222,760

Depreciation and amortization
National media	$	17,555		$	18,698		$	17,186
Local media	34,818			38,332			37,521
Unallocated corporate	1,519			2,122			1,839
Total depreciation and amortization	$	53,892		$	59,152		$	56,546

Assets
National media	$	1,487,070		$	1,478,243		$	1,665,542
Local media	1,124,853			1,054,311			1,072,152
Unallocated corporate	117,700			94,237			105,588
Total assets	$	2,729,623		$	2,626,791		$	2,843,282

Capital expenditures
National media	$	4,507		$	4,739		$	4,829
Local media	12,165			17,250			23,224
Unallocated corporate	18,113			3,046			5,192
Total capital expenditures	$	34,785		$	25,035		$	33,245