SEGMENT DATA

9 Months Ended

12 Months Ended

Sep. 30, 2014

Dec. 31, 2013

SEGMENT DATA

NOTE 9 – SEGMENT DATA

The Company’s reportable segments, which it believes best reflect how the Company is currently managed, are iHM (formerly CCME), Americas outdoor advertising and International outdoor advertising. Revenue and expenses earned and charged between segments are recorded at estimated fair value and eliminated in consolidation. The iHM segment provides media and entertainment services via broadcast and digital delivery and also includes the Company’s national syndication business. The Americas outdoor advertising segment consists of operations primarily in the United States and Canada. The International outdoor advertising segment primarily includes operations in Europe, Asia, Australia and Latin America. The Americas outdoor and International outdoor display inventory consists primarily of billboards, street furniture displays and transit displays. The Other category includes the Company’s media representation business as well as other general support services and initiatives which are ancillary to the Company’s other businesses. Corporate includes infrastructure and support, including information technology, human resources, legal, finance and administrative functions of each of the Company’s reportable segments, as well as overall executive, administrative and support functions. Share-based payments are recorded in corporate expenses.

The following table presents the Company’s reportable segment results for the three and nine months ended September 30, 2014 and 2013.

(In thousands)	iHM		Americas Outdoor   Advertising		International   Outdoor Advertising		Other		Corporate and other   reconciling   items		Eliminations			Consolidated
Three Months Ended September 30, 2014
Revenue	$	830,509	$	329,500	$	413,294	$	73,712	$	-	$	(16,981)		$	1,630,034
Direct operating expenses		242,517		140,739		260,095		5,103		-		(2,473)			645,981
Selling, general and administrative expenses		269,009		55,257		84,356		35,563		-		(14,498)			429,687
Corporate expenses		-		-		-		-		78,212		(10)			78,202
Depreciation and amortization		61,606		48,973		50,105		8,389		6,792		-			175,865
Impairment charges		-		-		-		-		35		-			35
Other operating income, net		-		-		-		-		47,172		-			47,172
Operating income (loss)	$	257,377	$	84,531	$	18,738	$	24,657	$	(37,867)	$	-		$	347,436
Intersegment revenues	$	10	$	721	$	-	$	16,250	$	-	$	-		$	16,981
Capital expenditures	$	9,336	$	18,980	$	22,860	$	1,235	$	1,176	$	-		$	53,587
Share-based compensation expense	$	-	$	-	$	-	$	-	$	2,246	$	-		$	2,246
Three Months Ended September 30, 2013
Revenue	$	823,863	$	331,346	$	391,667	$	57,460	$	-	$	(16,814	)	$	1,587,522
Direct operating expenses		249,084		140,972		255,122		5,718		-		(2,153	)		648,743
Selling, general and administrative expenses		260,264		55,739		75,698		34,314		-		(14,661	)		411,354
Corporate expenses		-		-		-		-		89,574		-			89,574
Depreciation and amortization		64,745		48,530		49,090		9,925		5,040		-			177,330
Impairment charges		-		-		-		-		-		-			-
Other operating income, net		-		-		-		-		6,186		-			6,186
Operating income (loss)	$	249,770	$	86,105	$	11,757	$	7,503	$	(88,428)	$	-		$	266,707
Intersegment revenues	$	-	$	1,110	$	-	$	15,704	$	-	$	-		$	16,814
Capital expenditures	$	22,171	$	13,838	$	19,983	$	2,070	$	6,518	$	-		$	64,580
Share-based compensation expense	$	-	$	-	$	-	$	-	$	2,754	$	-		$	2,754

(In thousands)	iHM		Americas Outdoor   Advertising		International   Outdoor Advertising		Other		Corporate and other   reconciling   items		Eliminations			Consolidated
Nine Months Ended September 30, 2014
Revenue	$	2,307,193	$	917,404	$	1,241,846	$	184,236	$	-	$	(47,943	)	$	4,602,736
Direct operating expenses		678,681		413,761		781,730		17,839		-		(6,313	)		1,885,698
Selling, general and administrative expenses		787,357		158,789		254,045		107,521		-		(41,620	)		1,266,092
Corporate expenses		-		-		-		-		233,114		(10	)		233,104
Depreciation and amortization		185,656		144,094		150,763		25,763		18,522		-			524,798
Impairment charges		-		-		-		-		4,937		-			4,937
Other operating income, net		-		-		-		-		45,709		-			45,709
Operating income (loss)	$	655,499	$	200,760	$	55,308	$	33,113	$	(210,864)	$	-		$	733,816
Intersegment revenues	$	10	$	2,791	$	-	$	45,142	$	-	$	-		$	47,943
Capital expenditures	$	30,020	$	48,390	$	84,215	$	4,121	$	28,262	$	-		$	195,008
Share-based compensation expense	$	-		-		-		-		8,064		-			8,064
Nine Months Ended September 30, 2013
Revenue	$	2,286,040	$	952,832	$	1,187,262	$	167,778	$	-	$	(45,235	)	$	4,548,677
Direct operating expenses		685,099		419,676		762,167		18,535		-		(6,368	)		1,879,109
Selling, general and administrative expenses		755,351		165,232		238,786		105,556		-		(38,867	)		1,226,058
Corporate expenses		-		-		-		-		245,702		-			245,702
Depreciation and amortization		200,615		144,256		150,013		29,797		14,565		-			539,246
Impairment charges		-		-		-		-		-		-			-
Other operating income, net		-		-		-		-		9,694		-			9,694
Operating income (loss)	$	644,975	$	223,668	$	36,296	$	13,890	$	(250,573)	$	-		$	668,256
Intersegment revenues	$	-	$	1,253	$	-	$	43,982	$	-	$	-		$	45,235
Capital expenditures	$	58,335	$	43,489	$	68,683	$	6,765	$	19,988	$	-		$	197,260
Share-based compensation expense	$	-	$	-	$	-	$	-	$	14,093	$	-		$	14,093

NOTE 13 – SEGMENT DATA

The Company’s reportable segments, which it believes best reflect how the Company is currently managed, are iHM, Americas outdoor advertising and International outdoor advertising. Revenue and expenses earned and charged between segments are recorded at estimated fair value and eliminated in consolidation. The iHM segment provides media and entertainment services via broadcast and digital delivery and also includes the Company’s national syndication business. The Americas outdoor advertising segment consists of operations primarily in the United States and Canada. The International outdoor advertising segment primarily includes operations in Europe, Asia, Australia and Latin America. The Americas outdoor and International outdoor display inventory consists primarily of billboards, street furniture displays and transit displays. The Other category includes the Company’s media representation business as well as other general support services and initiatives which are ancillary to the Company’s other businesses. Corporate includes infrastructure and support, including information technology, human resources, legal, finance and administrative functions of each of the Company’s reportable segments, as well as overall executive, administrative and support functions. Share-based payments are recorded in corporate expenses.

During the first quarter of 2012, the Company recast its segment reporting, as discussed in Note 1. The following table presents the Company’s reportable segment results for the years ended December 31, 2013, 2012 and 2011.

(In thousands)	iHM		Americas Outdoor   Advertising		International   Outdoor Advertising		Other		Corporate and   other reconciling items		Eliminations		Consolidated
Year Ended December 31, 2013
Revenue	$	3,131,595	$	1,290,452	$	1,655,738	$	227,864	$	-	$	(62,605)	$	6,243,044
Direct operating expenses		931,976		566,669		1,028,059		25,271		-		(8,556)		2,543,419
Selling, general and administrative expenses		1,020,097		220,732		322,840		140,241		-		(54,049)		1,649,861
Depreciation and amortization		271,126		196,597		203,927		39,291		19,887		-		730,828
Impairment charges		-		-		-		-		16,970		-		16,970
Corporate expenses		-		-		-		-		324,182		-		324,182
Other operating income, net		-		-		-		-		22,998		-		22,998
Operating income (loss)	$	908,396	$	306,454	$	100,912	$	23,061	$	(338,041)	$	-	$	1,000,782
Intersegment revenues	$	-	$	2,473	$	-	$	60,132	$	-	$	-	$	62,605
Segment assets	$	8,064,671	$	3,693,308	$	2,029,687	$	534,363	$	775,273	$	-	$	15,097,302
Capital expenditures	$	75,742	$	88,991	$	108,548	$	9,933	$	41,312	$	-	$	324,526
Share-based compensation expense	$	-	$	-	$	-	$	-	$	16,715	$	-	$	16,715
Year Ended December 31, 2012
Revenue	$	3,084,780	$	1,279,257	$	1,667,687	$	281,879	$	-	$	(66,719)	$	6,246,884
Direct operating expenses		878,626		582,340		1,021,152		25,088		-		(12,965)		2,494,241
Selling, general and administrative expenses		993,116		211,245		363,417		152,394		-		(53,754)		1,666,418
Depreciation and amortization		271,399		192,023		205,258		45,568		15,037		-		729,285
Impairment charges		-		-		-		-		37,651		-		37,651
Corporate expenses		-		-		-		-		297,366		-		297,366
Other operating income, net		-		-		-		-		48,127		-		48,127
Operating income (loss)	$	941,639	$	293,649	$	77,860	$	58,829	$	(301,927)	$	-	$	1,070,050
Intersegment revenues	$	-	$	1,175	$	80	$	65,464	$	-	$	-	$	66,719
Segment assets	$	8,201,798	$	3,835,235	$	2,256,309	$	815,435	$	1,183,936	$	-	$	16,292,713
Capital expenditures	$	65,821	$	117,647	$	150,129	$	17,438	$	39,245	$	-	$	390,280
Share-based compensation expense	$	-	$	-	$	-	$	-	$	28,540	$	-	$	28,540
Year Ended December 31, 2011
Revenue	$	2,986,828	$	1,252,725	$	1,751,149	$	234,542	$	-	$	(63,892)	$	6,161,352
Direct operating expenses		857,622		566,313		1,064,562		27,807		-		(11,837)		2,504,467
Selling, general and administrative expenses		971,066		198,989		339,043		147,481		-		(52,055)		1,604,524
Depreciation and amortization		268,245		211,009		219,955		49,827		14,270		-		763,306
Impairment charges		-		-		-		-		7,614		-		7,614
Corporate expenses		-		-		-		-		239,399		-		239,399
Other operating income, net		-		-		-		-		12,682		-		12,682
Operating income (loss)	$	889,895	$	276,414	$	127,589	$	9,427	$	(248,601)	$	-	$	1,054,724
Intersegment revenues	$	-	$	4,141	$	-	$	59,751	$	-	$	-	$	63,892
Segment assets	$	8,364,246	$	3,886,098	$	2,166,173	$	809,212	$	1,316,310	$	-	$	16,542,039
Capital expenditures	$	50,198	$	122,505	$	166,044	$	5,737	$	19,490	$	-	$	363,974
Share-based compensation expense	$	-	$	-	$	-	$	-	$	20,667	$	-	$	20,667

Revenue of $1.7 billion, $1.7 billion and $1.8 billion derived from the Company’s foreign operations are included in the data above for the years ended December 31, 2013, 2012 and 2011, respectively. Revenue of $4.5 billion, $4.5 billion and $4.3 billion derived from the Company’s U.S. operations are included in the data above for the years ended December 31, 2013, 2012 and 2011, respectively.

Identifiable long-lived assets of $760.5 million, $805.2 million and $797.7 million derived from the Company’s foreign operations are included in the data above for the years ended December 31, 2013, 2012 and 2011, respectively. Identifiable long-lived assets of $2.1 billion, $2.2 billion and $2.3 billion derived from the Company’s U.S. operations are included in the data above for the years ended December 31, 2013, 2012 and 2011, respectively.