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15. Segment Information
As a result of our acquisitions of MediaMind and EyeWonder, both online advertising services businesses, during the third quarter of 2011, we reorganized our reportable segments into television and online. We also changed our measure of segment profit from income from operations to adjusted EBITDA, as that is the measure our chief operating decision maker now uses to measure performance and allocate resources. Adjusted EBITDA reflects income from operations before acquisition and integration expenses, share-based compensation expense and depreciation and amortization. Our historical segment data has been reclassified to conform to the revised reportable segments and measure of segment performance. The television segment revenues are principally derived from delivering advertisements, syndicated programs, and video news releases from advertising agencies and other content providers to traditional broadcasters and other media outlets. The online segment revenues are principally derived from online advertising and related services. Our corporate expenses are allocated to the television and online segments based on revenues. Our reportable segments are as follows (in thousands):
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|
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|
2011 |
|
|
|
Television |
|
Online |
|
Consolidated |
|
|
Revenues |
|
$ |
246,780 |
|
$ |
77,477 |
|
$ |
324,257 |
|
|
Adjusted EBITDA |
|
|
123,260 |
|
|
11,334 |
|
|
134,594 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Acquisition and integration |
|
|
|
|
|
|
|
|
(15,119 |
) |
|
Share-based compensation |
|
|
|
|
|
|
|
|
(12,430 |
) |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(38,736 |
) |
| |
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
|
|
|
|
|
$ |
68,309 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010 |
|
|
|
Television |
|
Online |
|
Consolidated |
|
|
Revenues |
|
$ |
222,894 |
|
$ |
18,434 |
|
$ |
241,328 |
|
|
Adjusted EBITDA |
|
|
116,219 |
|
|
(71 |
) |
|
116,148 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Acquisition and integration |
|
|
|
|
|
|
|
|
(269 |
) |
|
Share-based compensation |
|
|
|
|
|
|
|
|
(4,805 |
) |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(29,236 |
) |
| |
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
|
|
|
|
|
$ |
81,838 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
|
Television |
|
Online |
|
Consolidated |
|
|
Revenues |
|
$ |
169,637 |
|
$ |
13,076 |
|
$ |
182,713 |
|
|
Adjusted EBITDA |
|
|
79,014 |
|
|
(2,940 |
) |
|
76,074 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
|
|
|
|
|
|
(3,983 |
) |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
(25,736 |
) |
| |
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
|
|
|
|
|
$ |
46,355 |
|
| |
|
|
|
|
|
|
|
|
|
As of December 31, 2011, our television and online segments had $233.8 million and $342.7 million, respectively, of goodwill. |