10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	for the quarterly period ended June 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: 333-62916-02

MISSION BROADCASTING, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	51-0388022
(State of Organization or Incorporation)	(IRS Employer Identification No.)
30400 Detroit Road, Suite 304, Westlake, Ohio	44145
(Address of Principal Executive Offices)	(Zip Code)
(440) 526-2227
(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 it was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by checkmark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    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. (check one):

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

As of August 11, 2014, the Registrant had 1,000 shares of common stock outstanding, held by two shareholders.

TABLE OF CONTENTS

		Page
PART I	FINANCIAL INFORMATION
ITEM 1.	Financial Statements (Unaudited)
	Condensed Balance Sheets as of June 30, 2014 and December 31, 2013	1
	Condensed Statements of Operations for the three and six months ended June 30, 2014 and 2013	2
	Condensed Statements of Cash Flows for the six months ended June 30, 2014 and 2013	3
	Notes to Condensed Financial Statements	4
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	21
ITEM 4.	Controls and Procedures	22
PART II	OTHER INFORMATION
ITEM 1.	Legal Proceedings	22
ITEM 1A.	Risk Factors	22
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
ITEM 3.	Defaults Upon Senior Securities	22
ITEM 4.	Mine Safety Disclosures	22
ITEM 5.	Other Information	22
ITEM 6.	Exhibits	23

PART I. FINANCIAL INFORMATION

 ITEM 1. Financial Statements

MISSION BROADCASTING, INC.
CONDENSED BALANCE SHEETS
(in thousands, except share information, unaudited)
	June 30,			December 31,
	2014			2013
ASSETS
Current assets:
Cash and cash equivalents	$	2,722		$	3,716
Accounts receivable, net of allowance for doubtful accounts of $60 and $96, respectively		6,178			5,059
Due from Nexstar Broadcasting, Inc.		5,436			-
Deferred tax assets, net		8,160			8,160
Prepaid expenses and other current assets		1,214			1,621
Total current assets		23,710			18,556
Property and equipment, net		25,419			26,760
Goodwill		32,489			32,489
FCC licenses		41,563			41,563
Other intangible assets, net		22,555			24,038
Deferred tax assets, net		21,691			25,727
Other noncurrent assets, net		7,824			5,616
Total assets	$	175,251		$	174,749
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
Current portion of debt	$	1,837		$	2,334
Current portion of broadcast rights payable		888			1,454
Due to Nexstar Broadcasting, Inc.		-			3,847
Accounts payable		722			723
Accrued expenses		3,233			2,372
Other current liabilities		510			401
Total current liabilities		7,190			11,131
Debt		228,745			230,131
Other liabilities		7,127			8,080
Total liabilities		243,062			249,342
Commitments and contingencies
Shareholders' deficit:
Common stock - $1 par value, 1,000 shares authorized, issued and outstanding as of each of June 30, 2014 and December 31, 2013		1			1
Subscription receivable		(1	)		(1	)
Accumulated deficit		(67,811	)		(74,593	)
Total shareholders' deficit		(67,811	)		(74,593	)
Total liabilities and shareholders' deficit	$	175,251		$	174,749

The accompanying Notes are an integral part of these Condensed Financial Statements.

1

MISSION BROADCASTING, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, unaudited)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Net broadcast revenue	$	8,749		$	7,209		$	17,629		$	14,304
Revenue from Nexstar Broadcasting, Inc.		9,808			10,042			19,456			19,304
Net revenue		18,557			17,251			37,085			33,608
Operating expenses:
Direct operating expenses, excluding depreciation and amortization		4,256			3,657			8,622			7,005
Selling, general, and administrative expenses, excluding depreciation and amortization		783			764			1,606			1,561
Fees incurred pursuant to local service agreements with Nexstar Broadcasting, Inc.		2,445			2,445			4,890			4,850
Amortization of broadcast rights		1,401			1,493			2,891			3,092
Amortization of intangible assets		710			1,670			1,483			3,736
Depreciation		723			953			1,456			1,921
Total operating expenses		10,318			10,982			20,948			22,165
Income from operations		8,239			6,269			16,137			11,443
Interest expense, net		(2,523	)		(4,506	)		(5,016	)		(8,983	)
Loss on extinguishment of debt		(21	)		-			(21	)		-
Income before income taxes		5,695			1,763			11,100			2,460
Income tax expense		(2,217	)		(686	)		(4,318	)		(960	)
Net income	$	3,478		$	1,077		$	6,782		$	1,500

The accompanying Notes are an integral part of these Condensed Financial Statements.

2

MISSION BROADCASTING, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
	Six Months Ended
	June 30,
	2014			2013
Cash flows from operating activities:
Net income	$	6,782		$	1,500
Adjustments to reconcile net income to net cash used in operating activities:
Deferred income taxes		4,036			912
Provision for bad debts		29			43
Depreciation of property and equipment		1,456			1,921
Amortization of intangible assets		1,483			3,736
Amortization of debt financing costs		282			255
Amortization of broadcast rights, excluding barter		835			950
Payments for broadcast rights		(846	)		(1,235	)
Deferred gain recognition		(123	)		(99	)
Amortization of debt discount		31			260
Loss on extinguishment of debt		21			-
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(1,148	)		(2,426	)
Prepaid expenses and other current assets		(56	)		21
Other noncurrent assets		(23	)		(53	)
Accounts payable and accrued expenses		957			1,093
Interest payable		-			(219	)
Other noncurrent liabilities		(69	)		(216	)
Due to/due from Nexstar Broadcasting, Inc.		(9,283	)		(7,972	)
Net cash provided by (used in) operating activities		4,364			(1,529	)
Cash flows from investing activities:
Purchases of property and equipment		(115	)		(48	)
Deposits and payments for acquisitions		(3,200	)		(59,338	)
Net cash used in investing activities		(3,315	)		(59,386	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		-			65,000
Repayments of long-term debt		(1,914	)		(260	)
Payments for debt financing costs		(129	)		(2,850	)
Net cash (used in) provided by financing activities		(2,043	)		61,890
Net (decrease) increase in cash and cash equivalents		(994	)		975
Cash and cash equivalents at beginning of period		3,716			318
Cash and cash equivalents at end of period	$	2,722		$	1,293
Supplemental information:
Interest paid	$	4,703		$	8,686
Income taxes paid, net of refunds	$	425		$	118
Non-cash financing activities:
Accrued debt financing costs	$	-		$	181

The accompanying Notes are an integral part of these Condensed Financial Statements.

3

MISSION BROADCASTING, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

1. Organization and Business Operations

As of June 30, 2014, Mission Broadcasting, Inc. (“Mission” or the “Company”) owned and operated 20 television stations and 4 digital multicast channels, affiliated with the NBC, ABC, FOX, CBS, MyNetworkTV, The CW or Bounce TV television networks, in markets located in New York, Pennsylvania, Illinois, Indiana, Missouri, Louisiana, Texas, Vermont, Arkansas and Montana. The Company operates in one reportable television broadcasting segment. Through local service agreements, Nexstar Broadcasting, Inc. (“Nexstar”) provides sales and operating services to all of the Mission television stations (see Note 4).

The Company is highly leveraged, which makes it vulnerable to changes in general economic conditions. The Company’s ability to repay or refinance its debt will depend on, among other things, financial, business, market, competitive and other conditions, many of which are beyond its control, as well as Nexstar maintaining its pledge to continue the local service agreements with the Company’s stations. Management believes that with Nexstar’s pledge to continue the local service agreements as described in a letter of support dated February 26, 2014, the Company’s available cash, anticipated cash flow from operations and available borrowings under its senior secured credit facility should be sufficient to fund working capital, capital expenditure requirements, interest payments and scheduled debt principal payments for at least the next twelve months from June 30, 2014, enabling Mission to continue to operate as a going concern.

Nexstar’s senior secured credit facility agreement contains covenants which require Nexstar to comply with certain financial ratios, including (a) a maximum consolidated total net leverage ratio, (b) a maximum consolidated first lien net leverage ratio, and (c) a minimum consolidated fixed charge coverage ratio. The covenants, which are calculated on a quarterly basis, include the combined results of Nexstar and Mission. The Company’s senior secured credit facility agreement does not contain financial covenant ratio requirements; however, it does include default provisions in the event Nexstar does not comply with all covenants contained in its credit agreement. As of June 30, 2014, Nexstar has informed Mission that it was in compliance with all covenants contained in its credit agreement and the indentures governing the publicly-held notes.

2. Summary of Significant Accounting Policies

Interim Financial Statements

The Condensed Financial Statements as of June 30, 2014, and for the three and six months ended June 30, 2014 and 2013, are unaudited. However, in the opinion of management, such financial statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of the financial information included herein in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The preparation of the Condensed Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Results of operations for interim periods are not necessarily indicative of results for the full year. These Condensed Financial Statements should be read in conjunction with the Financial Statements and related Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Balance Sheet as of December 31, 2013 has been derived from the audited Financial Statements as of that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, broadcast rights payable, accounts payable and accrued expenses approximate fair value due to their short-term nature. See Note 6 for fair value disclosures related to the Company’s debt.

Basis of Presentation

Certain prior year financial statement amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or shareholders’ deficit as previously reported.

4

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), an accounting standard update that amends the accounting guidance on revenue recognition. The amendments in this accounting standard update are intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, and improve disclosure requirements. The amendments in this accounting standard update are effective for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted. The Company is currently evaluating the impact of the provisions of the accounting standard update.

In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) (“ASU 2014-08”). ASU 2014-08 provides guidance that raises the threshold for disposals to qualify as a discontinued operation. ASU 2014-08 also allows companies to have significant continuing involvement and continuing cash flows with the discontinued operation and requires additional disclosures for discontinued operation and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. The update is effective for the years beginning after December 15, 2014. Early application is permitted. The Company does not expect the implementation of this standard to have a material impact on its financial position or results of operations.

3. Acquisitions

Signed Purchase Agreements

CCA/White Knight

On April 24, 2013, the Company and Nexstar entered into a stock purchase agreement to acquire the stock of privately-held Communications Corporation of America (“CCA”) and White Knight Broadcasting (“White Knight”). Due to certain subsequent changes in FCC rules and policies (see Note 7), the parties have agreed to restructure the transaction such that Mission will no longer participate in the acquisition. On June 4, 2014, Mission entered into an assignment and assumption agreement with Marshall Broadcasting Group, Inc. (“Marshall”) pursuant to which Mission assigned its rights and obligations under purchase agreements with Nexstar to Marshall with respect to television stations KPEJ (FOX) serving the Odessa-Midland market and KMSS (FOX) serving the Shreveport market, which currently are owned by CCA, subject to FCC consent.

Stainless

On September 13, 2013, the Company entered into a definitive agreement to acquire WICZ, the FOX affiliate, and WBPN-LP, the MyNetworkTV affiliate, both in the Binghamton, New York market, from Stainless Broadcasting, L.P. (“Stainless”). This acquisition will allow the Company entrance into this market. Under the terms of the purchase agreement, the Company will acquire the assets of WICZ and WBPN-LP for $15.3 million in cash, subject to adjustments for working capital to be acquired. A deposit of $0.2 million was paid upon signing the agreement. The remaining purchase price is expected to be funded through borrowings under the Company’s existing credit facility and cash on hand. The acquisition is subject to FCC approval and other customary conditions and Mission projects it to close in 2014. No significant transaction costs were incurred in connection with this acquisition during the three and six months ended June 30, 2014.

5

Grant

On November 6, 2013, Nexstar entered into a stock purchase agreement to acquire the outstanding equity of privately-held Grant Company, Inc. (“Grant”). Simultaneous with this agreement, Nexstar entered into a purchase agreement with Mission pursuant to which Mission would acquire one of Grant’s stations, KLJB, the FOX affiliate, in the Quad Cities, Iowa market, from Nexstar. Due to certain subsequent changes in FCC rules and policies (see Note 7), on June 4, 2014, Mission entered into an assignment and assumption agreement with Marshall pursuant to which Mission assigned its rights and obligations under its purchase agreement with Nexstar to Marshall and Marshall will acquire KLJB subject to FCC consent. Accordingly, Mission will no longer be acquiring KLJB.

Parker

On December 18, 2013, the Company entered into a definitive agreement to acquire the outstanding equity of KFQX, the FOX affiliate, in the Grand Junction, Colorado market, from Excalibur Broadcasting, LLC (“Excalibur”). The acquisition will allow the Company entrance into this market. Because of the new processing policies adopted by the FCC with respect to certain proposed television station transactions, the FCC has not granted consent to the Company’s acquisition of KFQX from Excalibur. On May 27, 2014, the Company and Excalibur terminated their purchase agreement and Mission assumed Excalibur’s rights, title and interest in an existing purchase agreement with Parker Broadcasting, Inc. (“Parker”) to acquire KFQX for $4.0 million in cash, subject to adjustments for working capital. In connection with this restructuring, Mission paid Parker a deposit of $3.2 million on June 13, 2014. The acquisition is subject to FCC approval and other customary conditions and Mission is projecting it to close in 2014. The Company expects to fund the remaining purchase price through cash generated from operations prior to closing. No significant transaction costs were incurred in connection with this acquisition during the three and six months ended June 30, 2014.

4. Local Service Agreements with Nexstar

The Company has entered into local service agreements with Nexstar to provide sales and operating services to all of its stations. For the stations with a shared services agreement (“SSA”), the Nexstar station in the market provides certain services including news production, technical maintenance and security, in exchange for monthly payments to Nexstar. For each station with which the Company has entered into an SSA, it has also entered into a joint sales agreement (“JSA”), whereby Nexstar sells the advertising time of the station and retains a percentage of the net revenue it generates in return for monthly payments to Mission of the remaining percentage of net revenue. For the stations with a time brokerage agreement (“TBA”), Nexstar programs most of the station’s broadcast time, sells the station’s advertising time and retains the advertising revenue it generates in exchange for monthly payments to Mission, based on the station’s monthly operating expenses. JSA and TBA fees generated from Nexstar under the agreements are reported as “Revenue from Nexstar Broadcasting, Inc.,” and SSA fees incurred by Mission under the agreements are reported as “Fees incurred pursuant to local service agreements with Nexstar Broadcasting, Inc.” in the accompanying condensed statements of operations.

Under these agreements, Mission is responsible for certain operating expenses of its stations and therefore may have unlimited exposure to any potential operating losses. Mission will continue to operate its stations under the SSAs and JSAs or TBAs until the termination of such agreements. The SSAs and JSAs generally have a term of eight to ten years. Nexstar indemnifies Mission from Nexstar’s activities pursuant to the local service agreements to which Nexstar is a party.

6

Under the local service agreements, Nexstar receives substantially all of the Company’s available cash, after satisfaction of operating costs and debt obligations. The Company anticipates that Nexstar will continue to receive substantially all of its available cash, after satisfaction of operating costs and debt obligations. In compliance with FCC regulations for both the Company and Nexstar, Mission maintains complete responsibility for and control over programming, finances, personnel and operations of its stations. Mission had the following local service agreements in effect with Nexstar as of June 30, 2014:

Station	Market	Type of Agreement	Expiration	Consideration from Nexstar
WFXP	Erie, PA	TBA	8/16/16	Monthly payments received from Nexstar
KHMT	Billings, MT	TBA	12/13/17	Monthly payments received from Nexstar
KJTL/KJBO-LP	Wichita Falls, TX-Lawton, OK	SSA JSA	5/31/19 5/31/19	$60 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WYOU	Wilkes Barre-Scranton, PA	SSA JSA	1/4/18 9/30/14	$35 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KODE	Joplin, MO-Pittsburg, KS	SSA JSA	3/31/22 9/30/14	$75 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KRBC	Abilene-Sweetwater, TX	SSA JSA	6/12/23 6/30/23	$25 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KSAN	San Angelo, TX	SSA JSA	5/31/24 5/31/24	$10 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WAWV	Terre Haute, IN	SSA JSA	5/8/23 5/8/23	$10 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KCIT/KCPN-LP	Amarillo, TX	SSA JSA	4/30/19 4/30/19	$50 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KAMC	Lubbock, TX	SSA JSA	2/15/19 2/15/19	$75 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KOLR	Springfield, MO	SSA JSA	2/15/19 2/15/19	$150 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WUTR	Utica, NY	SSA JSA	3/31/24 3/31/24	$10 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WTVO	Rockford, IL	SSA JSA	10/31/14 10/31/14	$75 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KTVE	Monroe, LA-El Dorado, AR	SSA JSA	1/16/18 1/16/18	$20 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WTVW	Evansville, IN	SSA JSA	11/30/19 11/30/19	$50 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KLRT/KASN	Little Rock-Pine Bluff, AR	SSA JSA	1/1/21 1/1/21	$150 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WVNY	Burlington-Plattsburgh, VT	SSA JSA	3/1/21 3/1/21	$20 thousand per month paid to Nexstar 70% of net revenue received from Nexstar

7

5. Intangible Assets and Goodwill

Intangible assets subject to amortization consisted of the following (in thousands):

	Estimated	June 30, 2014							December 31, 2013
	useful life,			Accumulated							Accumulated
	in years	Gross		Amortization			Net		Gross		Amortization			Net
Network affiliation agreements	15	$	84,505	$	(63,174	)	$	21,331	$	84,505	$	(61,716	)	$	22,789
Other definite-lived intangible assets	1-15		15,661		(14,437	)		1,224		15,661		(14,412	)		1,249
Other intangible assets		$	100,166	$	(77,611	)	$	22,555	$	100,166	$	(76,128	)	$	24,038

The following table presents the Company’s estimate of amortization expense for the remainder of 2014, each of the five succeeding years ended December 31 and thereafter for definite-lived intangible assets as of June 30, 2014 (in thousands):

Remainder of 2014	$	1,385
2015		2,579
2016		2,579
2017		2,456
2018		2,164
2019		1,954
Thereafter		9,438
	$	22,555

The carrying amounts of goodwill and FCC licenses were as follows (in thousands):

	Goodwill							FCC Licenses
			Accumulated							Accumulated
	Gross		Impairment			Net		Gross		Impairment			Net
Balance as of December 31, 2013	$	34,039	$	(1,550	)	$	32,489	$	52,260	$	(10,697	)	$	41,563
Balance as of June 30, 2014		34,039		(1,550	)		32,489		52,260		(10,697	)		41,563

Indefinite-lived intangible assets are not subject to amortization, but are tested for impairment annually or whenever events or changes in circumstances indicate that such assets might be impaired. As of June 30, 2014, the Company did not identify any events that would trigger an impairment assessment.

8

6. Debt

Long-term debt consisted of the following (in thousands):

	June 30,			December 31,
	2014			2013
Term loans, net of discount of $400 and $431, respectively	$	230,582		$	232,465
Less: current portion		(1,837	)		(2,334	)
	$	228,745		$	230,131

2014 Transactions

Through June 2014, the Company repaid the contractual maturities under its senior secured credit facility of $0.9 million.

On March 10, 2014, pursuant to the mandatory prepayment provisions under the Company’s credit agreement, the Company prepaid $1.0 million of the outstanding principal balance under its Term Loan B-2. The mandatory prepayment was calculated per the credit agreement, based on the Company’s and Nexstar’s consolidated first lien net leverage ratio, as defined in Nexstar’s credit agreement.

Effective April 30, 2014, the Company and Nexstar amended each of their credit agreements. The amendments reduced the Company’s total commitments under its Term Loan A Facility from $90.0 million to $60.0 million and increased Nexstar’s total commitments under its Term Loan A Facility from $144.0 million to $159.0 million. Pursuant to the terms of the amended credit agreements, the Company may also reallocate its unused Term Loan A Facility to Nexstar and Nexstar may reallocate its unused Term Loan A Facility to the Company. Additionally, the amendments increased the commitment fees on unused Term Loan A Facilities from 0.5% to 1.0% and extended the quarterly principal payments commencement to December 31, 2014.

Unused Commitments and Borrowing Availability

As of June 30, 2014, the Company had $30.0 million unused revolving loan commitment under its senior secured credit facility, all of which was available for borrowing, based on the covenant calculations. The Company also had $60.0 million of unused Term Loan A Facility commitment under its amended senior secured credit facility, all of which was available for borrowing as of June 30, 2014. Pursuant to the terms the Company’s and Nexstar’s amended credit agreements, the Company may reallocate any of its unused revolving loan commitments and unused Term Loan A Facility to Nexstar and Nexstar may also reallocate any of its unused revolving loan commitments of up to $75.0 million and Term Loan A Facility of up to $87.2 million to the Company.

Collateralization and Guarantees of Debt

Nexstar Broadcasting Group, Inc. (Nexstar’s ultimate parent) and its subsidiaries guarantees full payment of all obligations under the Mission senior secured credit facility in the event of Mission’s default. Similarly, Mission is a guarantor of Nexstar’s senior secured credit facility and the $525.0 million 6.875% senior unsecured notes issued by Nexstar (the “6.875% Notes”). The senior secured credit facilities are collateralized by a security interest in substantially all the combined assets, excluding FCC licenses, of Nexstar and Mission.

Debt Covenants

The Mission senior secured credit facility agreement does not contain financial covenant ratio requirements, but includes default provisions in the event Nexstar does not comply with all covenants contained in its credit agreement. Nexstar has informed the Company that it was in compliance with its debt covenants as of June 30, 2014.

9

Fair Value of Debt

The aggregate carrying amounts and estimated fair value of Mission’s debt were as follows (in thousands):

	June 30, 2014				December 31, 2013
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Term loans	$	230,582	$	230,982	$	232,465	$	233,299

The fair value of the term loans is computed based on borrowing rates currently available to Mission for bank loans with similar terms and average maturities. These fair value measurements are considered Level 3, as significant inputs to the fair value calculation are unobservable in the market.

7. FCC Regulatory Matters

Television broadcasting is subject to the jurisdiction of the FCC under the Communications Act of 1934, as amended (the “Communications Act”). The Communications Act prohibits the operation of television broadcasting stations except under a license issued by the FCC, and empowers the FCC, among other things, to issue, revoke, and modify broadcasting licenses, determine the location of television stations, regulate the equipment used by television stations, adopt regulations to carry out the provisions of the Communications Act and impose penalties for the violation of such regulations. The FCC’s ongoing rule making proceedings could have a significant future impact on the television industry and on the operation of the Company’s stations. In addition, the U.S. Congress may act to amend the Communications Act or adopt other legislation in a manner that could impact the Company’s stations and the television broadcast industry in general.

The FCC has adopted rules with respect to the final conversion of existing low power and television translator stations to digital operations. The FCC has established a September 1, 2015 deadline by which low power and television translator stations must cease analog operations. The Company will transition its low power and television translator stations to digital operations prior to September 1, 2015.

Media Ownership

The FCC is required to review its media ownership rules every four years and to eliminate those rules it finds no longer serve the “public interest, convenience and necessity.”

In 2006, the FCC initiated a rulemaking proceeding to review all of its media ownership rules, as required by the Communications Act. The FCC considered rules relating to ownership of two or more TV stations in a market, ownership of local TV and radio stations by daily newspapers in the same market, cross-ownership of local TV and radio stations, and changes to how the national TV ownership limits are calculated. In February 2008, the FCC adopted modest changes to its newspaper/broadcast cross-ownership rule while retaining the rest of its ownership rules then currently in effect. On July 7, 2011, the U.S. Court of Appeals for the Third Circuit vacated the FCC’s changes to its newspaper/broadcast cross-ownership rule while upholding the FCC’s retention of its other media ownership rules. In June 2012, the Supreme Court denied various petitions for review of the Third Circuit’s decision.

In May 2010, the FCC formally initiated its 2010 review of its media ownership rules with the issuance of a notice of inquiry, and in December 2011, the agency issued a notice of proposed rulemaking seeking comment on specific proposed changes to its ownership rules. The FCC, however, did not complete its 2010 review proceeding.  In March 2014, the FCC initiated its 2014 quadrennial review with the adoption of a Further Notice of Proposed Rulemaking (FNPRM).  The FNPRM incorporates the record of the 2010 quadrennial review proceeding and again solicits comment on proposed changes to the media ownership rules.  Among the proposals in the FNPRM are (1) retention of the current local television ownership rule (but with modifications to certain service contour definitions to conform to digital television broadcasting), (2) elimination of the radio/television cross-ownership rule, (3) elimination of the newspaper/radio cross-ownership rule, and (4) retention of the newspaper/television cross-ownership rule, while considering waivers of that rule in certain circumstances. The FNPRM also proposes to define a category of sharing agreements designated as SSAs between television stations, and to require television stations to disclose those SSAs. Comments and reply comments on the FNPRM are expected to be filed in the third quarter of 2014.

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Concurrently with its adoption of the FNPRM, the FCC also adopted a rule making television JSAs attributable to the seller of advertising time in certain circumstances.  Under this rule, where a party owns a full-power television station in a market and sells more than 15% of the weekly advertising time for another, non-owned station in the same market under a JSA, that party will be deemed to have an attributable interest in the latter station for purposes of the local television ownership rule.  Parties to newly attributable JSAs that do not comply with the local television ownership rule have until June 19, 2016 to modify or terminate their JSAs to come into compliance. Although the FCC will consider waivers of the new JSA attribution rule, the FCC thus far has provided little guidance on what factors must be present for a waiver to be granted. The Company anticipates requesting a waiver of this new rule before the compliance deadline. In addition, various parties, including Nexstar, have filed for review of this new rule with the U.S. Court of Appeals for the D.C. Circuit. Mission filed a motion to intervene in this proceeding. If the Company is required to amend or terminate our existing JSAs with Nexstar, we could have a reduction in revenue and increased costs if we are unable to successfully implement alternative arrangements that are as beneficial as the existing JSA agreements.

Also in March 2014, the FCC’s Media Bureau issued a public notice announcing “processing guidelines” for certain pending and future applications for FCC approval of television acquisitions.  The public notice indicates that the FCC will “closely scrutinize” applications which propose a JSA, SSA or local marketing agreement (“LMA”) between television stations, combined with an option, a similar “contingent interest,” or a loan guarantee. The FCC’s processing guidelines have been appealed. These new processing guidelines may affect the Company’s acquisition of additional stations in the future.

In September 2013, the FCC commenced a rulemaking proceeding to consider whether to eliminate the “UHF discount” that is currently used to calculate compliance with the national television ownership limit.

Spectrum

The FCC has initiated various proceedings to assess the availability of spectrum to meet future wireless broadband needs. The FCC’s March 2010 “National Broadband Plan” recommends the reallocation of 120 megahertz of the spectrum currently used for broadcast television for wireless broadband use. The FCC has thus far adopted rules permitting television stations to share a single 6 megahertz channel and requested comment on proposals that include, among other things, whether to add new frequency allocations in the television bands for licensed fixed and mobile wireless uses and whether to implement technical rule modifications to improve the viability of certain channels that are underutilized by digital television stations. In February 2012, Congress adopted legislation authorizing the FCC to conduct an incentive auction whereby television broadcasters could voluntarily relinquish all or part of their spectrum in exchange for consideration. In June 2014, the FCC released a Report and Order adopting rules to implement the broadcast television spectrum incentive auction, including rules addressing the design of the incentive auction and various technical issues related to the reallocation of television spectrum for mobile broadband use.  The FCC will decide additional issues related to the incentive auction, including final auction procedures and still-outstanding technical issues, in separate proceedings over the next several months.  The FCC has stated its intention to conduct the incentive auction in 2015. A reallocation of television spectrum for wireless broadband use will involve a “repacking” of the television broadcast band, which would require some television stations to change channel or otherwise modify their technical facilities. Future steps to reallocate television spectrum to broadband use may be to the detriment of the Company’s investment in digital facilities, could require substantial additional investment to continue current operations, and may require viewers to invest in additional equipment or subscription services to continue receiving broadcast television signals. The Company cannot predict the timing or results of television spectrum reallocation efforts or their impact to its business.

Retransmission Consent

 On March 3, 2011, the FCC initiated a Notice of Proposed Rulemaking to reexamine its rules (i) governing the requirements for good faith negotiations between multichannel video program distributors (MVPDs) and broadcasters, including implementing a prohibition on one station negotiating retransmission consent terms for another station under a local service agreement; (ii) for providing advance notice to consumers in the event of dispute; and (iii) to extend certain cable-only obligations to all MVPDs. The FCC also asked for comment on eliminating the network non-duplication and syndicated exclusivity protection rules, which may permit MVPDs to import out-of-market television stations during a retransmission consent dispute.

 In March 2014, the FCC adopted a rule that prohibits joint retransmission consent negotiation between television stations in the same market which are not commonly owned and which are ranked among the top four stations in the market in terms of audience share. This new rule requires the Company to negotiate retransmission consent agreements for certain of its stations separately from Nexstar. This new rule is now effective and is the subject of a pending court appeal.

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8. Commitments and Contingencies

Guarantees of Nexstar Debt

Mission is a guarantor of and has pledged substantially all its assets, excluding FCC licenses, to guarantee Nexstar’s credit facility. Mission is also a guarantor of Nexstar’s 6.875% Notes. The 6.875% Notes are general senior unsecured obligations subordinated to all of Mission’s senior debt. In the event that Nexstar is unable to repay amounts due under these debt obligations, Mission will be obligated to repay such amounts. The maximum potential amount of future payments that Mission would be required to make under these guarantees would be generally limited to the amount of borrowings outstanding under Nexstar’s senior secured credit facility and 6.875% Notes. As of June 30, 2014, Nexstar had $525.0 million outstanding obligations under its 6.875% Notes due on November 15, 2020 and had a maximum commitment of $495.5 million under its senior secured credit facility, of which $262.0 million in Term Loan B-2 and $71.3 million in Term Loan A were outstanding.

Nexstar’s Term Loan B-2 is payable in consecutive quarterly installments of 0.25% of the aggregate principal, adjusted for any prepayments, with the remainder due in full at maturity on October 1, 2020. Nexstar’s Term Loan A is payable in quarterly installments that increase over time from 5.0% to 10.0% of the aggregate principal, adjusted for any prepayments, beginning December 31, 2014. The remainder of the principal is due at maturity on June 28, 2018.

Purchase Options Granted to Nexstar

In consideration of the guarantee of Mission’s bank credit facility by Nexstar Broadcasting Group, Inc. and its subsidiaries, Mission has granted Nexstar purchase options to acquire the assets and assume the liabilities of each Mission station, subject to FCC consent, for consideration equal to the greater of (1) seven times the station’s cash flow, as defined in the option agreement, less the amount of its indebtedness as defined in the option agreement, or (2) the amount of its indebtedness. Cash flow is defined as income or loss from operations, plus depreciation and amortization (including amortization of broadcast rights), interest income, non-cash trade and barter expenses, nonrecurring expenses (including time brokerage agreement fees), network compensation payments received or receivable and corporate management fees, less payments for broadcast rights, non-cash trade and barter revenue and network compensation revenue. Additionally, Mission’s shareholders have granted Nexstar an option to purchase any or all of the Company’s stock, subject to FCC consent, for a price equal to the pro rata portion of the greater of (1) five times the stations’ cash flow, as defined in the agreement, reduced by the amount of indebtedness, as defined in the agreement, or (2) $100,000. These option agreements (which expire on various dates between 2014 and 2023) are freely exercisable or assignable by Nexstar without consent or approval by Mission or its shareholders. The Company expects these option agreements to be renewed upon expiration.

Indemnification Obligations

In connection with certain agreements that the Company enters into in the normal course of its business, including local service agreements, business acquisitions and borrowing arrangements, the Company enters into contractual arrangements under which the Company agrees to indemnify the other party to such arrangement from losses, claims and damages incurred by the indemnified party for certain events as defined within the particular contract. Such indemnification obligations may not be subject to maximum loss clauses and the maximum potential amount of future payments the Company could be required to make under these indemnification arrangements may be unlimited. Historically, payments made related to these indemnifications have been insignificant and the Company has not incurred significant costs to defend lawsuits or settle claims related to these indemnification agreements.

Litigation

From time to time, the Company is involved with claims that arise out of the normal course of business. In the opinion of management, any resulting liability with respect to these claims would not have a material adverse effect on the Company’s financial position or results of operations.

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

The following discussion and analysis should be read in conjunction with our Condensed Financial Statements and related Notes included elsewhere in this Quarterly Report on Form 10-Q and the Financial Statements and related Notes contained in our Annual Report on Form 10-K for the year ended December 31, 2013. Throughout this discussion, all references to “Mission”, “we”, “our”, “us” and the “Company” refer to Mission Broadcasting, Inc.

Overview of Operations

As of June 30, 2014, we owned and operated 20 television stations and 4 digital multicast channels. We have local service agreements with certain television stations owned by Nexstar, through which Nexstar provides various programming, sales or other services to our television stations. In compliance with FCC regulations for both Nexstar and us, we maintain complete responsibility for and control over programming, finances, personnel and operations for our stations.

Our previously disclosed pending acquisitions of 7 television stations from White Knight and Nexstar in the Shreveport, Louisiana, Baton Rouge, Louisiana, Tyler-Longview, Texas, Odessa-Midland, Texas markets and our previously disclosed acquisition of one television station from Nexstar in the Quad Cities, Iowa market have been terminated due to changes in the FCC rules and policies and we no longer are under agreement to purchase these stations.

In December 2013, we entered into a definitive agreement to acquire the outstanding equity of KFQX, the FOX affiliate, in the Grand Junction, Colorado market, from Excalibur Broadcasting, LLC (“Excalibur”). The acquisition will allow us entrance into this market.  The FCC has not granted the consent to our acquisition of KFQX from Excalibur. On May 27, 2014, we and Excalibur terminated our purchase agreement and we assumed Excalibur’s rights, title and interest in an existing purchase agreement with Parker to acquire KFQX for $4.0 million in cash, subject to adjustments for working capital. In connection with this restructuring, we paid Parker a deposit of $3.2 million on June 13, 2014. The acquisition is subject to FCC approval and other customary conditions and we are projecting it to close in 2014. We expect to fund the remaining purchase price of $0.8 million through cash generated from operations prior to closing.

Effective April 30, 2014, we and Nexstar amended each of our credit agreements. The amendments reduced our total commitments under our Term Loan A Facility from $90.0 million to $60.0 million and increased Nexstar’s total commitments under its Term Loan A Facility from $144.0 million to $159.0 million. Pursuant to the terms of the amended credit agreements, we may also reallocate any unused Term Loan A Facility to Nexstar and Nexstar may reallocate its unused Term Loan A Facility to us.

The following table summarizes the various local service agreements our stations had in effect as of June 30, 2014 with Nexstar:

Service Agreements	Stations
TBA Only(1)	WFXP and KHMT
SSA & JSA(2)	KJTL, KJBO-LP, KLRT, KASN, KOLR, KCIT, KCPN-LP, KAMC, KRBC, KSAN, WUTR, WAWV, WYOU, KODE, KTVE, WTVO, WTVW and WVNY

_____________________________________

(1)   We have a time brokerage agreement (“TBA”) for each of these stations which allows Nexstar to program most of each station’s broadcast time, sell each station’s advertising time and retain the advertising revenue generated in exchange for monthly payments to us.

(2)     We have both a shared services agreement (“SSA”) and a joint sales agreement (“JSA”) for each of these stations. The SSA allows the sharing of services including news production, technical maintenance and security, in exchange for Nexstar’s right to receive certain payments from us as described in the SSAs. The JSAs permit Nexstar to sell the station’s advertising time and retain a percentage of the net revenue from the station’s advertising time in return for monthly payments to us of the remaining percentage of the net revenue, as described in the JSAs.

 Under the local service agreements, Nexstar receives substantially all of our available cash, after satisfaction of operating costs and debt obligations. We anticipate that Nexstar will continue to receive substantially all of our available cash, after satisfaction of operating costs and debt obligations. For more information about our local service agreements with Nexstar, refer to Note 4 of our Condensed Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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The operating revenue of our stations is derived primarily from broadcast advertising revenue sold and collected by Nexstar and paid to us under the JSAs. Broadcast advertising revenue is affected by a number of factors, including the economic conditions of the markets in which we operate, the demographic makeup of those markets and the marketing strategy employed in each market. Advertising revenue is positively affected by strong local economies, national and regional political election campaigns, and certain events such as the Olympic Games or the Super Bowl. Because television broadcast stations rely on advertising revenue, declines in advertising budgets, particularly in recessionary periods, adversely affect advertising revenues in the broadcast industry, and as a result may contribute to a decrease in the revenue of broadcast television stations. The stations’ advertising revenue is generally highest in the second and fourth quarters of each year, due in part to increases in consumer advertising in the spring and retail advertising in the period leading up to, and including, the holiday season. In addition, advertising revenue is generally higher during even-numbered years, when state, congressional and presidential elections occur and advertising airs during the Olympic Games. As 2014 is an election year and an Olympic year, we expect an increase in advertising revenue to be reported in 2014 compared to 2013.

Each station acquires licenses to broadcast programming in non-news and non-network time periods. The licenses are either purchased from a program distributor for cash or the program distributor is allowed to sell some of the advertising inventory as compensation to eliminate or reduce the cash cost for the license. The latter practice is referred to as barter broadcast rights. The station records the estimated fair market value of the licenses, including any advertising inventory given to the program distributor, as a broadcast right asset and liability. Barter broadcast rights are recorded at management’s estimate of the value of the advertising time exchanged using historical advertising rates, which approximates the fair value of the program material received. The assets are amortized as a component of amortization of broadcast rights. Amortization is computed using the straight-line method over the license period or period of usage, whichever ends earlier. The cash broadcast rights liabilities are reduced by monthly payments while the barter liability is amortized over the life of the contract as barter revenue.

Our primary operating expense consists of fixed monthly SSA fees paid to Nexstar for news production and technical and other services. To a lesser extent, our operating expenses include employee compensation and related benefits. A large percentage of the costs involved in the operation of our stations remains fixed.

Industry Trends

As a television broadcaster, we are highly regulated and our operations require that we retain or renew a variety of government approvals and comply with changing federal regulations. On March 31, 2014, the FCC modified its television ownership rules such that a television licensee that sells more than 15 percent of the weekly advertising inventory of another television station in the same Designated Market Area will be deemed to have an attributable ownership interest in that station. Stations with existing JSAs that will be deemed attributable interests have until June 19, 2016 to amend or terminate those arrangements or to obtain waivers. Although the FCC will consider waivers of the new JSA attribution rule, the FCC thus far has provided little guidance on what factors must be present for a waiver to be granted. We will be required to amend or terminate our JSAs involving advertising sales in excess of 15 percent unless we are able to obtain a waiver of the rule. The Company expects to incur additional costs in complying with this new rule. We do not expect the new rules to impact our revenue from Nexstar in 2014; however, within the next two years our company may be negatively impacted by the new JSA attibution rule. If we are unable to obtain waivers from the FCC and are required to amend or terminate our existing agreements we could have a reduction in revenue and increased costs if we are unable to successfully implement alternative arrangements that are as beneficial as the existing JSAs.

Also in March 2014, the FCC’s Media Bureau issued a public notice announcing “processing guidelines” for certain pending and future applications for FCC approval of television acquisitions. The FCC will “closely scrutinize” applications which propose a JSA, SSA or LMA between television stations, combined with an option, a similar “contingent interest,” or a loan guarantee. We have two announced acquisitions that are pending FCC approval that include “guideline” agreements. As a result of the recently adopted JSA rule and the processing guidelines the timing of ultimate approval for these transactions may be delayed in part because the new rule and guidelines may require amendments or waivers in order to obtain FCC approval. We plan to respond to regulatory inquires associated with each of the announced acquisitions and our intent is to close those transactions in 2014.

Also in March 2014, the FCC amended its rules governing retransmission consent negotiations. The amended rule effectively prohibits two non-commonly owned stations ranked in the top four in viewership in a market from negotiating jointly with MVPDs. Historically, we have negotiated retransmission consent agreements jointly with Nexstar. In most of our markets, we are now required to separately negotiate our retransmission consent agreements with MVPDs. We cannot predict at this time the impact this amended rule will have on future negotiations with MVPDs and the impact, if any, it will have on our revenues and expenses.

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Historical Performance

Revenue

The following table sets forth the principal types of revenue earned by our stations (in thousands) and each type of revenue (other than barter revenue and revenue from Nexstar) as a percentage of total net broadcast revenue before barter:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	Amount		%	Amount		%	Amount		%	Amount		%
Retransmission compensation	$	7,612	98.3	$	6,041	97.7	$	15,313	98.3	$	11,884	97.7
Other		132	1.7		140	2.3		260	1.7		278	2.3
Net broadcast revenue before barter		7,744	100.0		6,181	100.0		15,573	100.0		12,162	100.0
Barter revenue		1,005			1,028			2,056			2,142
Revenue from Nexstar		9,808			10,042			19,456			19,304
Net revenue	$	18,557		$	17,251		$	37,085		$	33,608

Results of Operations

The following table sets forth a summary of our operations (in thousands) and the components of operating expense as a percentage of net revenue:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	Amount		%	Amount		%	Amount		%	Amount		%
Net revenue	$	18,557	100.0	$	17,251	100.0	$	37,085	100.0	$	33,608	100.0
Operating expenses:
Corporate expenses		253	1.4		255	1.5		575	1.6		537	1.7
Station direct operating expenses, net of trade		4,256	22.9		3,657	21.2		8,622	23.2		7,005	20.8
Station selling, general and administrative expenses		530	2.9		509	2.9		1,031	2.8		1,024	3.1
Fees incurred pursuant to local service agreements with Nexstar		2,445	13.2		2,445	14.2		4,890	13.2		4,850	14.4
Barter expense		1,005	5.4		1,028	6.0		2,056	5.5		2,142	6.4
Depreciation		723	3.9		953	5.5		1,456	3.9		1,921	5.7
Amortization of intangible assets		710	3.8		1,670	9.7		1,483	4.0		3,736	11.1
Amortization of broadcast rights, excluding barter		396	2.1		465	2.7		835	2.3		950	2.8
Income from operations	$	8,239		$	6,269		$	16,137		$	11,443

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Three Months Ended June 30, 2014 Compared to Three Months Ended June 30, 2013

Revenue

Net revenue for the three months ended June 30, 2014 increased by $1.3 million, or 7.6%, from the same period in 2013. This increase was primarily attributed to compensation from retransmission consent.

Revenue from Nexstar was $9.8 million for the three months ended June 30, 2014, compared to $10.0 million for the same period in 2013, a decrease of $0.2 million, or 2.3%. The revenue we earn from Nexstar through our JSAs is directly correlated to the advertising revenue earned at our stations.

Compensation from retransmission consent was $7.6 million for the three months ended June 30, 2014, compared to $6.1 million for the same period in 2013, an increase of $1.6 million, or 26.0%. The increase was primarily due to retransmission consent providing for higher rates per subscriber during the quarter.

Operating Expenses

Corporate expenses were consistent at $0.3 million for each of the three months ended June 30, 2014 and 2013. Corporate expense relates to costs associated with the centralized management of our stations.

Station direct operating expenses, consisting primarily of news, engineering and programming, and station selling, general and administrative expenses were $4.8 million for the three months ended June 30, 2014, compared to $4.2 million for the same period in 2013, an increase of $0.6 million, or 14.9%. The increase was primarily due to an increase in programming costs of our legacy stations of $0.6 million related to recently enacted network agreements. Networks now require additional compensation from broadcasters for the use of network programming. Network program fees have recently increased industry wide and will continue to increase over the next several years.

Local service agreement fees associated with Nexstar relate to services provided by Nexstar in the production of newscasts, technical maintenance, promotional and administrative support under the SSAs. SSA fees were consistent at $2.4 million for each of the three months ended June 30, 2014 and 2013.

Amortization of intangible assets was $0.7 million for the three months ended June 30, 2014, compared to $1.7 million for the same period in 2013, a decrease of $1.0 million, or 57.5%. This was primarily attributable to decreases in amortization of other intangible assets from certain fully amortized assets.

Depreciation of property and equipment was $0.7 million for the three months ended June 30, 2014, compared to $1.0 million for the same period in 2013, a decrease of $0.2 million, or 24.1%. This was primarily attributable to decreases in depreciation of property and equipment from certain of our legacy stations that reached full depreciation during the three months ended June 30, 2014.

Interest Expense

Interest expense, net was $2.5 million for the three months ended June 30, 2014, compared to $4.5 million for the same period in 2013, a decrease of $2.0 million, or 44.0%. The decrease was primarily attributable to lower interest rates on our outstanding debt as a result of refinancing our obligations under the $325.0 million 8.875% senior second lien notes into borrowings under our amended credit facility completed in October 2013. This decrease was partially offset by increased borrowings during 2013 to fund our acquisitions of television stations.

Income Taxes

Income tax expense was $2.2 million for the three months ended June 30, 2014 and $0.7 million for the same period in 2013, or an increase of $1.5 million. The effective tax rate for each of the three months ended June 30, 2014 and 2013 was 38.9%.

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Six Months Ended June 30, 2014 Compared to Six Months Ended June 30, 2013

Revenue

Net revenue for the six months ended June 30, 2014 increased by $3.5 million, or 10.3%, from the same period in 2013. This increase was primarily attributed to compensation from retransmission consent, revenue from our newly acquired station, WVNY, and as 2014 is an Olympic year.

Revenue from Nexstar was $19.5 million for the six months ended June 30, 2014, compared to $19.3 million for the same period in 2013, an increase of $0.2 million, or 0.8%. The revenue we earn from Nexstar through our JSAs is directly correlated to the advertising revenue earned at our stations, which has increased primarily as a result of a JSA we entered into with Nexstar for our newly acquired station, WVNY, on March 1, 2013.

Compensation from retransmission consent was $15.3 million for the six months ended June 30, 2014, compared to $12.0 million for the same period in 2013, an increase of $3.4 million, or 28.9%. The increase was primarily due to retransmission consent providing for higher rates per subscriber during the period and incremental revenue from our newly acquired station, WVNY.

Operating Expenses

Corporate expenses were consistent at $0.6 million for the six months ended June 30, 2014, compared to $0.5 million for the same period in 2013. Corporate expense relates to costs associated with the centralized management of our stations.

Station direct operating expenses, consisting primarily of news, engineering and programming, and selling, general and administrative expenses were $9.7 million for the six months ended June 30, 2014, compared to $8.0 million for the same period in 2013, an increase of $1.6 million, or 20.2%. The increase was primarily due to programming costs of our newly acquired station, WVNY, during the six months ended June 30, 2014 of $0.4 million and an increase in programming costs of our legacy stations of $1.2 million related to recently enacted network agreements. Networks now require additional compensation from broadcasters for the use of network programming. Network program fees have recently increased industry wide and will continue to increase over the next several years.

Local service agreement fees associated with Nexstar relate to services provided by Nexstar in the production of newscasts, technical maintenance, promotional and administrative support under the SSAs. SSA fees were consistent at $4.9 million for each of the six months ended June 30, 2014 and 2013.

Amortization of intangible assets was $1.5 million for the six months ended June 30, 2014, compared to $3.7 million for the same period in 2013, a decrease of $2.3 million, or 60.3%. This was primarily attributable to decreases in amortization of other intangible assets from certain fully amortized assets.

Depreciation of property and equipment was $1.5 million for the six months ended June 30, 2014, compared to $1.9 million for the same period in 2013, a decrease of $0.5 million, or 24.2%. This was primarily attributable to decreases in depreciation of property and equipment from certain of our legacy stations that reached full depreciation during the year.

Interest Expense

Interest expense, net was $5.0 million for the six months ended June 30, 2014, compared to $9.0 million for the same period in 2013, a decrease of $4.0 million, or 44.2%. The decrease was primarily attributable to lower interest rates on our outstanding debt as a result of refinancing our obligations under the $325.0 million 8.875% senior second lien notes into borrowings under our amended credit facility completed in October 2013. This decrease was partially offset by increased borrowings during 2013 to fund our acquisitions of television stations.

Income Taxes

Income tax expense was $4.3 million for the six months ended June 30, 2014 and $1.0 million for the same period in 2013, an increase of $3.4 million. The effective tax rates for the six months ended June 30, 2014 and 2013 were 38.9% and 39.0%, respectively.

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Liquidity and Capital Resources

We are highly leveraged, which makes us vulnerable to changes in general economic conditions. Our ability to meet the future cash requirements described below depends on our ability to generate cash in the future, which is subject to general economic, financial, competitive, legislative, regulatory and other conditions, many of which are beyond our control. Our ability to meet future cash requirements is also dependent upon the local service agreements we have entered into with Nexstar. Under our local service agreements, Nexstar sells our advertising time and pays us a percentage of the amount collected. The payments we receive from Nexstar are a significant component of our cash flows. On February 26, 2014, Nexstar represented to us that it will continue the various local service agreements under which it provides sales and other services to our television stations, thereby providing financial support to enable us to continue to operate as a going concern. We believe that with Nexstar’s pledge to continue the local service agreements, our available cash, anticipated cash flow from operations and available borrowings under our senior secured credit facility should be sufficient to fund working capital, capital expenditure requirements, interest payments and scheduled debt principal payments for at least the next twelve months from June 30, 2014. In order to meet future cash needs we may, from time to time, borrow under our existing senior secured credit facility. We will continue to evaluate the best use of our operating cash flow among capital expenditures, acquisitions and debt reduction.

Overview

The following tables present summarized financial information management believes is helpful in evaluating our liquidity and capital resources (in thousands):

	Six Months Ended
	June 30,
	2014			2013
Net cash provided by (used in) operating activities	$	4,364		$	(1,529	)
Net cash used in investing activities		(3,315	)		(59,386	)
Net cash (used in) provided by financing activities		(2,043	)		61,890
Net (decrease) increase in cash and cash equivalents	$	(994	)	$	975
Cash paid for interest	$	4,703		$	8,686
Cash paid for taxes		425			118

	As of		As of
	June 30,		December 31,
	2014		2013
Cash and cash equivalents	$	2,722	$	3,716
Long-term debt including current portion		230,582		232,465
Unused incremental term loan commitment under senior secured credit facility		60,000		90,000
Unused revolving loan commitment under senior secured credit facility		30,000		30,000

Cash Flows – Operating Activities

Net cash flows provided by operating activities increased by $5.9 million during the six months ended June 30, 2014 compared to the same period in 2013. This was primarily due to an increase in net revenue of $3.5 million less an increase in operating expenses (excluding depreciation, amortization of intangible assets and amortization of broadcast rights) of $1.7 million, and a source of cash from decrease in cash paid for interest of $4.0 million.

Cash Flows – Investing Activities

Net cash flows used in investing activities decreased by $56.1 million during the six months ended June 30, 2014, compared to the same period in 2013. In 2014, we paid a deposit of $3.2 million to acquire KFQX, the FOX affiliate, in the Grand Junction, Colorado market. In 2013, we made payments of $53.7 million to acquire the assets of KLRT and KASN from Newport Television, LLC and $5.6 million to acquire the assets of WVNY from Smith Media, LLC.

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Cash Flows – Financing Activities

Net cash flows used in financing activities was $2.0 million during the six months ended June 30, 2014, compared to the net cash flows provided by financing activities of $61.9 million for the same period in 2013. In 2014, we repaid a total of $1.9 million outstanding principal under our term loans. In 2013, we borrowed a total of $65.0 million in term loans and revolving loans under our senior secured credit facility to finance our acquisitions of KLRT, KASN and WVNY. This was partially offset by payment for debt financing costs of $2.9 million and payments of contractual maturities under our term loans of $0.3 million.

Our senior secured credit facility restricts but does not prohibit the payment of cash dividends to our shareholders.

Future Sources of Financing and Debt Service Requirements

As of June 30, 2014, we had a total debt of $230.6 million which represented 141.7% of our total capitalization. Our high level of debt requires that a substantial portion of cash flow be dedicated to pay principal and interest on our debt, which reduces the funds available for working capital, capital expenditures, acquisitions and other general corporate purposes.

The total amount of borrowings available to us under the revolving loan commitment of our senior credit facility is based on covenant calculations contained in Nexstar’s credit agreement. As of June 30, 2014, we have $30.0 million unused revolving loan commitment under our senior secured credit facility. Effective April 30, 2014, we entered into an amendment to our credit agreement. The amendment reduced our total commitments under our Term Loan A Facility from $90.0 million to $60.0 million, all of which were unused as of June 30, 2014. Additionally, the amendment increased the commitment fees on our unused Term Loan A Facility from 0.5% to 1.0% and extended the quarterly principal payments commencement to December 31, 2014.

Pursuant to the terms of our and Nexstar amended credit agreements, we may reallocate any of our unused revolving loan commitments and unused Term Loan A Facility to Nexstar and Nexstar may also reallocate any of its unused revolving loan commitments of up to $75.0 million and Term Loan A Facility of up to $87.2 million to us.

The unused commitments under our senior secured credit facilities are expected to be partially utilized to fund the remaining purchase price to acquire two stations from Stainless for $15.1 million and one station from Parker for $0.8 million, subject to adjustments for working capital, which we project to close in 2014.

The following table summarizes the approximate aggregate amount of principal indebtedness scheduled to mature for the periods referenced as of June 30, 2014 (in thousands):

	Total		Remainder of 2014			2015-2016		2017-2018	Thereafter
Senior secured credit facility	$	230,982	$	919	$	4,171	$	4,670	$	221,222

Interest payments on our senior secured credit facility are generally paid every one to three months and are payable based on the type of interest rate selected.

The terms of our senior secured credit facility limit, but do not prohibit, us from incurring substantial amounts of additional debt in the future.

We do not have any rating downgrade triggers that would accelerate the maturity dates of our debt. However, a downgrade in our credit rating could adversely affect our ability to renew existing or obtain access to new credit facilities in the future and could increase the cost of such facilities.

Collateralization and Guarantees of Debt

Nexstar Broadcasting Group, Inc. (Nexstar’s ultimate parent) and its subsidiaries guarantee full payment of all obligations under our senior secured credit facility in the event of our default. Similarly, we are a guarantor of Nexstar’s senior secured credit facility and the 6.875% Senior unsecured notes (the “6.875% Notes”) issued by Nexstar. The senior secured credit facilities are collateralized by a security interest in substantially all the combined assets, excluding FCC licenses, of Nexstar and us. As of June 30, 2014, Nexstar had a maximum commitment of $495.5 million under its senior secured credit facility, of which $333.3 million of debt was outstanding and had $525.0 million of the 6.875% Notes outstanding.

19

Debt Covenants

Our ability to continue as a going concern is dependent on Nexstar’s pledge to continue the local services agreements described in a letter of support dated February 26, 2014. Our senior secured credit facility agreement does not contain financial covenant ratio requirements; however, it does include an event of default if Nexstar does not comply with all covenants contained in its credit agreement. Nexstar’s senior secured credit facility agreement contains covenants which require Nexstar to comply with certain financial ratios, including (a) a maximum consolidated total net leverage ratio, (b) a maximum consolidated first lien net leverage ratio, and (c) a minimum consolidated fixed charge coverage ratio. The covenants, which are calculated on a quarterly basis, include the combined results of Nexstar and us. As of June 30, 2014, Nexstar has informed us that it was in compliance with all covenants contained in its credit agreement and the indentures governing the publicly-held notes.

No Off-Balance Sheet Arrangements

As of June 30, 2014, we did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. We are, therefore, not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such relationships.

Critical Accounting Policies and Estimates

Our Condensed Financial Statements have been prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the Condensed Financial Statements and reported amounts of revenue and expenses during the period. On an ongoing basis, we evaluate our estimates, including those related to goodwill and intangible assets, bad debts, broadcast rights, trade and barter, income taxes, commitments and contingencies. We base our estimates on historical experience and on various other assumptions that we believe 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 results may differ from those estimates. Results of operations for interim periods are not necessarily indicative of results for the full year.

Information with respect to our critical accounting policies which we believe could have the most significant effect on our reported results and require subjective or complex judgments by management is contained in our Annual Report on Form 10-K for the year ended December 31, 2013. Management believes that as of June 30, 2014, there have been no material changes to this information.

Recent Accounting Pronouncements

Refer to Note 2 of our Condensed Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion of our adoption of recently issued accounting pronouncements, including our expected date of adoption and effects on results of operations and financial position.

20

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including: any projections or expectations of earnings, revenue, financial performance, liquidity and capital resources or other financial items; any assumptions or projections about the television broadcasting industry; any statements of our plans, strategies and objectives for our future operations, performance, liquidity and capital resources or other financial items; any statements concerning proposed new products, services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words “may,” “will,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and other similar words.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ from this projection or assumption in any of our forward-looking statements. Our future financial position and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties, including those described in our Annual Report on Form 10-K for the year ended December 31, 2013 and in our other filings with the Securities and Exchange Commission. The forward-looking statements made in this Quarterly Report on Form 10-Q are made only as of the date hereof, and we do not have or undertake any obligation to update any forward-looking statements to reflect subsequent events or circumstances unless otherwise required by law.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

Our exposure to market risk for changes in interest rates relates primarily to our long-term debt obligations.

Our term loan borrowings under our senior secured credit facility bear interest at a rate of 3.8% as of June 30, 2014, which represented the base rate, or LIBOR, plus the applicable margin, as defined. Our revolving loans bear interest at LIBOR plus the applicable margin, which totaled 2.7% at June 30, 2014. Interest is payable in accordance with the credit agreement.

If LIBOR were to increase by 100 basis points, or one percentage point, from its June 30, 2014 level, our annual interest expense would increase and cash flow from operations would decrease by approximately $0.4 million, based on the outstanding balance of our credit facility as of June 30, 2014. Due to the LIBOR floor on our term loan, an increase of 50 basis points in LIBOR or any decrease in LIBOR would not have an impact on our operations or cash flows. As of June 30, 2014, we have no financial instruments in place to hedge against changes in the benchmark interest rates on our senior secured credit facility.

Impact of Inflation

We believe that our results of operations are not affected by moderate changes in the inflation rate.

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ITEM 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Mission’s management, with the participation of Mission’s President and Treasurer (who is Mission’s principal executive officer and principal financial and accounting officer), conducted an evaluation as of the end of the period covered by this report of the effectiveness of the design and operation of Mission’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934.

Based upon that evaluation, Mission’s President and Treasurer concluded that as of the end of the period covered by this report, Mission’s disclosure controls and procedures were effective in ensuring that information required to be disclosed by Mission in the reports it files or submits under the Securities Exchange Act of 1934 (i) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) is accumulated and communicated to Mission’s management, including its President and Treasurer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

As of the quarter ended June 30, 2014, there have been no changes in Mission’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings

From time to time, we are involved in litigation that arises from the ordinary operations of business, such as contractual or employment disputes or other general actions. In the event of an adverse outcome of these proceedings, we believe the resulting liabilities would not have a material adverse effect on our financial condition or results of operations.

ITEM 1A. Risk Factors

There are no material changes from the risk factors previously disclosed in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2013, except those reported in our Quarterly Report on Form 10-Q for the period ended March 31, 2014.

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

None.

ITEM 3. Defaults Upon Senior Securities

None.

ITEM 4. Mine Safety Disclosures

None.

ITEM 5. Other Information

None.

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ITEM 6.                       Exhibits

Exhibit No.	Description
10.1	Letter dated May 28, 2014, notifying Mission Broadcasting, Inc. of the election to extend Shared Services Agreement and Agreement for the Sale of Commercial Time (KSAN)*
31.1	Certification of Dennis Thatcher pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certification of Dennis Thatcher pursuant to 18 U.S.C. ss. 1350.*
101	The Company’s unaudited Condensed Consolidated Financial Statements and related Notes for the quarter ended June 30, 2014 from this Quarterly Report on Form 10-Q, formatted in XBRL (eXtensible Business Reporting Language).*

*           Filed herewith

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

	MISSION BROADCASTING, INC.
	/s/ Dennis Thatcher
By:	Dennis Thatcher
Its:	President and Treasurer
	(Principal Executive Officer and Principal Financial and Accounting Officer)

Dated: August 13, 2014

EX-10.1

Exhibit 10.1

May 28, 2014

Mr. Dennis Thatcher

Mission Broadcasting, Inc.

30400 Detroit Road

Suite 304

Westlake, OH  44145

Re:  Shared Services Agreement and Agreement for the Sale of Commercial Time for KSAN-TV, San Angelo, Texas

Dear Dennis:

Nexstar Broadcasting, Inc. (“Nexstar”) and Mission Broadcasting, Inc. (“Mission”) are parties to (1) a Shared Services Agreement (the “SSA”) for broadcast station KSAN-TV, San Angelo, Texas (“KSAN”), dated as of June 1, 2004 (as amended), the initial term of which expires as of May 31, 2014, and (2) an Agreement for the Sale of Commercial Time with respect to KSAN (the “JSA” and, collectively with the SSA, the “Agreements”), also dated as of June 1, 2004, the initial term of which also expires as of May 31, 2014.  Pursuant to Section 7 of the SSA and Section 1(b) of the JSA, the term of each Agreement shall be extended for an additional ten (10) year term, unless either party provides at least six months notice of its intent to terminate such Agreement.

This letter is to confirm that neither Nexstar nor Mission has provided the requisite notice of termination for either Agreement; and it is the parties’ intent that the SSA and JSA continue in effect pursuant to the terms thereof (as amended from time to time).  Accordingly, Nexstar and Mission hereby agree to extend the terms of the SSA and JSA for a period of ten years.  Please confirm Mission’s agreement by signing the enclosed duplicate copy of this letter and returning it to my attention.

Thank you.

 Sincerely,

/s/ Elizabeth Ryder

Elizabeth Ryder

Senior Vice President & General Counsel

Acknowledged and Agreed:
Mission Broadcasting, Inc.
By:	/s/ Dennis P. Thatcher
Title:	President

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Dennis Thatcher certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Mission Broadcasting, 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. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and I have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to me by others, particularly during the period in which this quarterly report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my 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 my 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. 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 the 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.

Dated: August 13, 2014

By:	/s/ DENNIS THATCHER
	Dennis Thatcher President and Treasurer (Principal Executive Officer and Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Mission Broadcasting, Inc. (the “Company”), hereby certifies that the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 13, 2014	/s/ DENNIS THATCHER
	Dennis Thatcher
	President and Treasurer (Principal Executive Officer and Principal Financial and Accounting Officer)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section. The foregoing certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

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Local Service Agreements with Nexstar

6 Months Ended

Jun. 30, 2014

Local Service Agreements with Nexstar [Abstract]

Local Service Agreements with Nexstar

4. Local Service Agreements with Nexstar

The Company has entered into local service agreements with Nexstar to provide sales and operating services to all of its stations. For the stations with a shared services agreement (“SSA”), the Nexstar station in the market provides certain services including news production, technical maintenance and security, in exchange for monthly payments to Nexstar. For each station with which the Company has entered into an SSA, it has also entered into a joint sales agreement (“JSA”), whereby Nexstar sells the advertising time of the station and retains a percentage of the net revenue it generates in return for monthly payments to Mission of the remaining percentage of net revenue. For the stations with a time brokerage agreement (“TBA”), Nexstar programs most of the station’s broadcast time, sells the station’s advertising time and retains the advertising revenue it generates in exchange for monthly payments to Mission, based on the station’s monthly operating expenses. JSA and TBA fees generated from Nexstar under the agreements are reported as “Revenue from Nexstar Broadcasting, Inc.,” and SSA fees incurred by Mission under the agreements are reported as “Fees incurred pursuant to local service agreements with Nexstar Broadcasting, Inc.” in the accompanying condensed statements of operations.

Under these agreements, Mission is responsible for certain operating expenses of its stations and therefore may have unlimited exposure to any potential operating losses. Mission will continue to operate its stations under the SSAs and JSAs or TBAs until the termination of such agreements. The SSAs and JSAs generally have a term of eight to ten years. Nexstar indemnifies Mission from Nexstar’s activities pursuant to the local service agreements to which Nexstar is a party.

Under the local service agreements, Nexstar receives substantially all of the Company’s available cash, after satisfaction of operating costs and debt obligations. The Company anticipates that Nexstar will continue to receive substantially all of its available cash, after satisfaction of operating costs and debt obligations. In compliance with FCC regulations for both the Company and Nexstar, Mission maintains complete responsibility for and control over programming, finances, personnel and operations of its stations. Mission had the following local service agreements in effect with Nexstar as of June 30, 2014:

Station	Market	Type of Agreement	Expiration	Consideration from Nexstar
WFXP	Erie, PA	TBA	8/16/16	Monthly payments received from Nexstar
KHMT	Billings, MT	TBA	12/13/17	Monthly payments received from Nexstar
KJTL/KJBO-LP	Wichita Falls, TX-Lawton, OK	SSA JSA	5/31/19 5/31/19	$60 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WYOU	Wilkes Barre-Scranton, PA	SSA JSA	1/4/18 9/30/14	$35 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KODE	Joplin, MO-Pittsburg, KS	SSA JSA	3/31/22 9/30/14	$75 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KRBC	Abilene-Sweetwater, TX	SSA JSA	6/12/23 6/30/23	$25 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KSAN	San Angelo, TX	SSA JSA	5/31/24 5/31/24	$10 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WAWV	Terre Haute, IN	SSA JSA	5/8/23 5/8/23	$10 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KCIT/KCPN-LP	Amarillo, TX	SSA JSA	4/30/19 4/30/19	$50 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KAMC	Lubbock, TX	SSA JSA	2/15/19 2/15/19	$75 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KOLR	Springfield, MO	SSA JSA	2/15/19 2/15/19	$150 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WUTR	Utica, NY	SSA JSA	3/31/24 3/31/24	$10 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WTVO	Rockford, IL	SSA JSA	10/31/14 10/31/14	$75 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KTVE	Monroe, LA-El Dorado, AR	SSA JSA	1/16/18 1/16/18	$20 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WTVW	Evansville, IN	SSA JSA	11/30/19 11/30/19	$50 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KLRT/KASN	Little Rock-Pine Bluff, AR	SSA JSA	1/1/21 1/1/21	$150 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WVNY	Burlington-Plattsburgh, VT	SSA JSA	3/1/21 3/1/21	$20 thousand per month paid to Nexstar 70% of net revenue received from Nexstar

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Acquisitions

6 Months Ended

Jun. 30, 2014

Acquisitions [Abstract]

Acquisitions

3. Acquisitions

Signed Purchase Agreements

CCA/White Knight

On April 24, 2013, the Company and Nexstar entered into a stock purchase agreement to acquire the stock of privately-held Communications Corporation of America (“CCA”) and White Knight Broadcasting (“White Knight”). Due to certain subsequent changes in FCC rules and policies (see Note 7), the parties have agreed to restructure the transaction such that Mission will no longer participate in the acquisition. On June 4, 2014, Mission entered into an assignment and assumption agreement with Marshall Broadcasting Group, Inc. (“Marshall”) pursuant to which Mission assigned its rights and obligations under purchase agreements with Nexstar to Marshall with respect to television stations KPEJ (FOX) serving the Odessa-Midland market and KMSS (FOX) serving the Shreveport market, which currently are owned by CCA, subject to FCC consent.

Stainless

On September 13, 2013, the Company entered into a definitive agreement to acquire WICZ, the FOX affiliate, and WBPN-LP, the MyNetworkTV affiliate, both in the Binghamton, New York market, from Stainless Broadcasting, L.P. (“Stainless”). This acquisition will allow the Company entrance into this market. Under the terms of the purchase agreement, the Company will acquire the assets of WICZ and WBPN-LP for $15.3 million in cash, subject to adjustments for working capital to be acquired. A deposit of $0.2 million was paid upon signing the agreement. The remaining purchase price is expected to be funded through borrowings under the Company’s existing credit facility and cash on hand. The acquisition is subject to FCC approval and other customary conditions and Mission projects it to close in 2014. No significant transaction costs were incurred in connection with this acquisition during the three and six months ended June 30, 2014.

Grant

On November 6, 2013, Nexstar entered into a stock purchase agreement to acquire the outstanding equity of privately-held Grant Company, Inc. (“Grant”). Simultaneous with this agreement, Nexstar entered into a purchase agreement with Mission pursuant to which Mission would acquire one of Grant’s stations, KLJB, the FOX affiliate, in the Quad Cities, Iowa market, from Nexstar. Due to certain subsequent changes in FCC rules and policies (see Note 7), on June 4, 2014, Mission entered into an assignment and assumption agreement with Marshall pursuant to which Mission assigned its rights and obligations under its purchase agreement with Nexstar to Marshall and Marshall will acquire KLJB subject to FCC consent. Accordingly, Mission will no longer be acquiring KLJB.

Parker

On December 18, 2013, the Company entered into a definitive agreement to acquire the outstanding equity of KFQX, the FOX affiliate, in the Grand Junction, Colorado market, from Excalibur Broadcasting, LLC (“Excalibur”). The acquisition will allow the Company entrance into this market. Because of the new processing policies adopted by the FCC with respect to certain proposed television station transactions, the FCC has not granted consent to the Company’s acquisition of KFQX from Excalibur. On May 27, 2014, the Company and Excalibur terminated their purchase agreement and Mission assumed Excalibur’s rights, title and interest in an existing purchase agreement with Parker Broadcasting, Inc. (“Parker”) to acquire KFQX for $4.0 million in cash, subject to adjustments for working capital. In connection with this restructuring, Mission paid Parker a deposit of $3.2 million on June 13, 2014. The acquisition is subject to FCC approval and other customary conditions and Mission is projecting it to close in 2014. The Company expects to fund the remaining purchase price through cash generated from operations prior to closing. No significant transaction costs were incurred in connection with this acquisition during the three and six months ended June 30, 2014.

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CONDENSED BALANCE SHEETS (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 2,722	$ 3,716
Accounts receivable, net of allowance for doubtful accounts of $60 and $96, respectively	6,178	5,059
Due from Nexstar Broadcasting, Inc.	5,436	0
Deferred tax assets, net	8,160	8,160
Prepaid expenses and other current assets	1,214	1,621
Total current assets	23,710	18,556
Property and equipment, net	25,419	26,760
Goodwill	32,489	32,489
FCC licenses	41,563	41,563
Other intangible assets, net	22,555	24,038
Deferred tax assets, net	21,691	25,727
Other noncurrent assets, net	7,824	5,616
Total assets	175,251	174,749
Current liabilities:
Current portion of debt	1,837	2,334
Current portion of broadcast rights payable	888	1,454
Due to Nexstar Broadcasting, Inc.	0	3,847
Accounts payable	722	723
Accrued expenses	3,233	2,372
Other current liabilities	510	401
Total current liabilities	7,190	11,131
Debt	228,745	230,131
Other liabilities	7,127	8,080
Total liabilities	243,062	249,342
Commitments and contingencies
Shareholders' deficit:
Common stock - $1 par value, 1,000 shares authorized, issued and outstanding as of each of June 30, 2014 and December 31, 2013	1	1
Subscription receivable	(1)	(1)
Accumulated deficit	(67,811)	(74,593)
Total shareholders' deficit	(67,811)	(74,593)
Total liabilities and shareholders' deficit	$ 175,251	$ 174,749

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Organization and Business Operations

6 Months Ended

Jun. 30, 2014

Organization and Business Operations [Abstract]

Organization and Business Operations

1. Organization and Business Operations

As of June 30, 2014, Mission Broadcasting, Inc. (“Mission” or the “Company”) owned and operated 20 television stations and 4 digital multicast channels, affiliated with the NBC, ABC, FOX, CBS, MyNetworkTV, The CW or Bounce TV television networks, in markets located in New York, Pennsylvania, Illinois, Indiana, Missouri, Louisiana, Texas, Vermont, Arkansas and Montana. The Company operates in one reportable television broadcasting segment. Through local service agreements, Nexstar Broadcasting, Inc. (“Nexstar”) provides sales and operating services to all of the Mission television stations (see Note 4).

The Company is highly leveraged, which makes it vulnerable to changes in general economic conditions. The Company’s ability to repay or refinance its debt will depend on, among other things, financial, business, market, competitive and other conditions, many of which are beyond its control, as well as Nexstar maintaining its pledge to continue the local service agreements with the Company’s stations. Management believes that with Nexstar’s pledge to continue the local service agreements as described in a letter of support dated February 26, 2014, the Company’s available cash, anticipated cash flow from operations and available borrowings under its senior secured credit facility should be sufficient to fund working capital, capital expenditure requirements, interest payments and scheduled debt principal payments for at least the next twelve months from June 30, 2014, enabling Mission to continue to operate as a going concern.

Nexstar’s senior secured credit facility agreement contains covenants which require Nexstar to comply with certain financial ratios, including (a) a maximum consolidated total net leverage ratio, (b) a maximum consolidated first lien net leverage ratio, and (c) a minimum consolidated fixed charge coverage ratio. The covenants, which are calculated on a quarterly basis, include the combined results of Nexstar and Mission. The Company’s senior secured credit facility agreement does not contain financial covenant ratio requirements; however, it does include default provisions in the event Nexstar does not comply with all covenants contained in its credit agreement. As of June 30, 2014, Nexstar has informed Mission that it was in compliance with all covenants contained in its credit agreement and the indentures governing the publicly-held notes.

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Debt (Details) (USD $)	3 Months Ended	6 Months Ended									6 Months Ended				6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 Carrying Amount [Member]	Dec. 31, 2013 Carrying Amount [Member]	Jun. 30, 2014 Fair Value [Member]	Dec. 31, 2013 Fair Value [Member]	Jun. 30, 2014 Term A Loan [Member]	Apr. 30, 2014 Term A Loan [Member] Mission [Member]	Dec. 31, 2013 Term A Loan [Member] Mission [Member]	Jun. 30, 2014 Term A Loan [Member] Nexstar [Member]	Apr. 30, 2014 Term A Loan [Member] Nexstar [Member]	Dec. 31, 2013 Term A Loan [Member] Nexstar [Member]	Jun. 30, 2014 Revolving Credit Facility [Member]	Jun. 30, 2014 Revolving Credit Facility [Member] Nexstar [Member]	Jun. 30, 2014 6.875% Senior Unsecured Notes Due 2020 [Member] Nexstar Broadcasting Group, Inc. [Member]
Long term Debt [Abstract]
Term loans, net of discount of $400 and $431, respectively	$ 230,582,000	$ 230,582,000	$ 232,465,000
Less: current portion	(1,837,000)	(1,837,000)	(2,334,000)
Debt, noncurrent	228,745,000	228,745,000	230,131,000
Debt discount	400,000	400,000	431,000
Interest rate (in hundredths)																6.875%
Payment of contractual maturities of term loan		900,000
Prepayments of outstanding principal balance	1,000,000
Available borrowing capacity								60,000,000						30,000,000
Maximum reallocation of unused revolving and/or non-revolving loan commitment											87,200,000				75,000,000
Guarantee of Nexstar's debt																525,000,000
Total commitments under Term Loan A facility									60,000,000	90,000,000		159,000,000	144,000,000
Fair Value of debt [Line Items]
Term loans fair value disclosure				$ 230,582,000	$ 232,465,000	$ 230,982,000	$ 233,299,000

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2014

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Interim Financial Statements

The Condensed Financial Statements as of June 30, 2014, and for the three and six months ended June 30, 2014 and 2013, are unaudited. However, in the opinion of management, such financial statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of the financial information included herein in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The preparation of the Condensed Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Results of operations for interim periods are not necessarily indicative of results for the full year. These Condensed Financial Statements should be read in conjunction with the Financial Statements and related Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Balance Sheet as of December 31, 2013 has been derived from the audited Financial Statements as of that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, broadcast rights payable, accounts payable and accrued expenses approximate fair value due to their short-term nature. See Note 6 for fair value disclosures related to the Company’s debt.

Basis of Presentation

Certain prior year financial statement amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or shareholders’ deficit as previously reported.

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), an accounting standard update that amends the accounting guidance on revenue recognition. The amendments in this accounting standard update are intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, and improve disclosure requirements. The amendments in this accounting standard update are effective for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted. The Company is currently evaluating the impact of the provisions of the accounting standard update.

In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) (“ASU 2014-08”). ASU 2014-08 provides guidance that raises the threshold for disposals to qualify as a discontinued operation. ASU 2014-08 also allows companies to have significant continuing involvement and continuing cash flows with the discontinued operation and requires additional disclosures for discontinued operation and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. The update is effective for the years beginning after December 15, 2014. Early application is permitted. The Company does not expect the implementation of this standard to have a material impact on its financial position or results of operations.

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CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Accounts receivable, allowance for doubtful accounts	$ 60	$ 96
Shareholders' deficit:
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	1,000	1,000
Common stock, shares issued (in shares)	1,000	1,000
Common stock, shares outstanding (in shares)	1,000	1,000

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Debt (Tables)

6 Months Ended

Jun. 30, 2014

Debt [Abstract]

Long Term Debt

Long-term debt consisted of the following (in thousands):

	June 30,			December 31,
	2014			2013
Term loans, net of discount of $400 and $431, respectively	$	230,582		$	232,465
Less: current portion		(1,837	)		(2,334	)
	$	228,745		$	230,131

Fair Value of Debt

The aggregate carrying amounts and estimated fair value of Mission’s debt were as follows (in thousands):

	June 30, 2014				December 31, 2013
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Term loans	$	230,582	$	230,982	$	232,465	$	233,299

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Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 11, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	MISSION BROADCASTING INC
Entity Central Index Key	0001142412
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,000
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014

XML

Organization and Business Operations (Details)	6 Months Ended
	Jun. 30, 2014 Segment Channel TelevisionStation
Organization and Business Operations [Abstract]
Number of television stations owned and operated	20
Number of digital multicast channels owned and operated	4
Number of reportable segments	1

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CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
Net broadcast revenue	$ 8,749	$ 7,209	$ 17,629	$ 14,304
Revenue from Nexstar Broadcasting, Inc.	9,808	10,042	19,456	19,304
Net revenue	18,557	17,251	37,085	33,608
Operating expenses:
Direct operating expenses, excluding depreciation and amortization	4,256	3,657	8,622	7,005
Selling, general, and administrative expenses, excluding depreciation and amortization	783	764	1,606	1,561
Fees incurred pursuant to local service agreements with Nexstar Broadcasting, Inc.	2,445	2,445	4,890	4,850
Amortization of broadcast rights	1,401	1,493	2,891	3,092
Amortization of intangible assets	710	1,670	1,483	3,736
Depreciation	723	953	1,456	1,921
Total operating expenses	10,318	10,982	20,948	22,165
Income from operations	8,239	6,269	16,137	11,443
Interest expense, net	(2,523)	(4,506)	(5,016)	(8,983)
Loss on extinguishment of debt	(21)	0	(21)	0
Income before income taxes	5,695	1,763	11,100	2,460
Income tax expense	(2,217)	(686)	(4,318)	(960)
Net income	$ 3,478	$ 1,077	$ 6,782	$ 1,500

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FCC Regulatory Matters

6 Months Ended

Jun. 30, 2014

FCC Regulatory Matters [Abstract]

FCC Regulatory Matters

7. FCC Regulatory Matters

Television broadcasting is subject to the jurisdiction of the FCC under the Communications Act of 1934, as amended (the “Communications Act”). The Communications Act prohibits the operation of television broadcasting stations except under a license issued by the FCC, and empowers the FCC, among other things, to issue, revoke, and modify broadcasting licenses, determine the location of television stations, regulate the equipment used by television stations, adopt regulations to carry out the provisions of the Communications Act and impose penalties for the violation of such regulations. The FCC’s ongoing rule making proceedings could have a significant future impact on the television industry and on the operation of the Company’s stations. In addition, the U.S. Congress may act to amend the Communications Act or adopt other legislation in a manner that could impact the Company’s stations and the television broadcast industry in general.

The FCC has adopted rules with respect to the final conversion of existing low power and television translator stations to digital operations. The FCC has established a September 1, 2015 deadline by which low power and television translator stations must cease analog operations. The Company will transition its low power and television translator stations to digital operations prior to September 1, 2015.

Media Ownership

The FCC is required to review its media ownership rules every four years and to eliminate those rules it finds no longer serve the “public interest, convenience and necessity.”

In 2006, the FCC initiated a rulemaking proceeding to review all of its media ownership rules, as required by the Communications Act. The FCC considered rules relating to ownership of two or more TV stations in a market, ownership of local TV and radio stations by daily newspapers in the same market, cross-ownership of local TV and radio stations, and changes to how the national TV ownership limits are calculated. In February 2008, the FCC adopted modest changes to its newspaper/broadcast cross-ownership rule while retaining the rest of its ownership rules then currently in effect. On July 7, 2011, the U.S. Court of Appeals for the Third Circuit vacated the FCC’s changes to its newspaper/broadcast cross-ownership rule while upholding the FCC’s retention of its other media ownership rules. In June 2012, the Supreme Court denied various petitions for review of the Third Circuit’s decision.

In May 2010, the FCC formally initiated its 2010 review of its media ownership rules with the issuance of a notice of inquiry, and in December 2011, the agency issued a notice of proposed rulemaking seeking comment on specific proposed changes to its ownership rules. The FCC, however, did not complete its 2010 review proceeding.  In March 2014, the FCC initiated its 2014 quadrennial review with the adoption of a Further Notice of Proposed Rulemaking (FNPRM).  The FNPRM incorporates the record of the 2010 quadrennial review proceeding and again solicits comment on proposed changes to the media ownership rules.  Among the proposals in the FNPRM are (1) retention of the current local television ownership rule (but with modifications to certain service contour definitions to conform to digital television broadcasting), (2) elimination of the radio/television cross-ownership rule, (3) elimination of the newspaper/radio cross-ownership rule, and (4) retention of the newspaper/television cross-ownership rule, while considering waivers of that rule in certain circumstances. The FNPRM also proposes to define a category of sharing agreements designated as SSAs between television stations, and to require television stations to disclose those SSAs. Comments and reply comments on the FNPRM are expected to be filed in the third quarter of 2014.

Concurrently with its adoption of the FNPRM, the FCC also adopted a rule making television JSAs attributable to the seller of advertising time in certain circumstances.  Under this rule, where a party owns a full-power television station in a market and sells more than 15% of the weekly advertising time for another, non-owned station in the same market under a JSA, that party will be deemed to have an attributable interest in the latter station for purposes of the local television ownership rule.  Parties to newly attributable JSAs that do not comply with the local television ownership rule have until June 19, 2016 to modify or terminate their JSAs to come into compliance. Although the FCC will consider waivers of the new JSA attribution rule, the FCC thus far has provided little guidance on what factors must be present for a waiver to be granted. The Company anticipates requesting a waiver of this new rule before the compliance deadline. In addition, various parties, including Nexstar, have filed for review of this new rule with the U.S. Court of Appeals for the D.C. Circuit. Mission filed a motion to intervene in this proceeding. If the Company is required to amend or terminate our existing JSAs with Nexstar, we could have a reduction in revenue and increased costs if we are unable to successfully implement alternative arrangements that are as beneficial as the existing JSA agreements.

Also in March 2014, the FCC’s Media Bureau issued a public notice announcing “processing guidelines” for certain pending and future applications for FCC approval of television acquisitions.  The public notice indicates that the FCC will “closely scrutinize” applications which propose a JSA, SSA or local marketing agreement (“LMA”) between television stations, combined with an option, a similar “contingent interest,” or a loan guarantee. The FCC’s processing guidelines have been appealed. These new processing guidelines may affect the Company’s acquisition of additional stations in the future.

In September 2013, the FCC commenced a rulemaking proceeding to consider whether to eliminate the “UHF discount” that is currently used to calculate compliance with the national television ownership limit.

Spectrum

The FCC has initiated various proceedings to assess the availability of spectrum to meet future wireless broadband needs. The FCC’s March 2010 “National Broadband Plan” recommends the reallocation of 120 megahertz of the spectrum currently used for broadcast television for wireless broadband use. The FCC has thus far adopted rules permitting television stations to share a single 6 megahertz channel and requested comment on proposals that include, among other things, whether to add new frequency allocations in the television bands for licensed fixed and mobile wireless uses and whether to implement technical rule modifications to improve the viability of certain channels that are underutilized by digital television stations. In February 2012, Congress adopted legislation authorizing the FCC to conduct an incentive auction whereby television broadcasters could voluntarily relinquish all or part of their spectrum in exchange for consideration. In June 2014, the FCC released a Report and Order adopting rules to implement the broadcast television spectrum incentive auction, including rules addressing the design of the incentive auction and various technical issues related to the reallocation of television spectrum for mobile broadband use.  The FCC will decide additional issues related to the incentive auction, including final auction procedures and still-outstanding technical issues, in separate proceedings over the next several months.  The FCC has stated its intention to conduct the incentive auction in 2015. A reallocation of television spectrum for wireless broadband use will involve a “repacking” of the television broadcast band, which would require some television stations to change channel or otherwise modify their technical facilities. Future steps to reallocate television spectrum to broadband use may be to the detriment of the Company’s investment in digital facilities, could require substantial additional investment to continue current operations, and may require viewers to invest in additional equipment or subscription services to continue receiving broadcast television signals. The Company cannot predict the timing or results of television spectrum reallocation efforts or their impact to its business.

Retransmission Consent

 On March 3, 2011, the FCC initiated a Notice of Proposed Rulemaking to reexamine its rules (i) governing the requirements for good faith negotiations between multichannel video program distributors (MVPDs) and broadcasters, including implementing a prohibition on one station negotiating retransmission consent terms for another station under a local service agreement; (ii) for providing advance notice to consumers in the event of dispute; and (iii) to extend certain cable-only obligations to all MVPDs. The FCC also asked for comment on eliminating the network non-duplication and syndicated exclusivity protection rules, which may permit MVPDs to import out-of-market television stations during a retransmission consent dispute.

 In March 2014, the FCC adopted a rule that prohibits joint retransmission consent negotiation between television stations in the same market which are not commonly owned and which are ranked among the top four stations in the market in terms of audience share. This new rule requires the Company to negotiate retransmission consent agreements for certain of its stations separately from Nexstar. This new rule is now effective and is the subject of a pending court appeal.

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Debt

6 Months Ended

Jun. 30, 2014

Debt [Abstract]

Debt

6. Debt

Long-term debt consisted of the following (in thousands):

	June 30,			December 31,
	2014			2013
Term loans, net of discount of $400 and $431, respectively	$	230,582		$	232,465
Less: current portion		(1,837	)		(2,334	)
	$	228,745		$	230,131

2014 Transactions

Through June 2014, the Company repaid the contractual maturities under its senior secured credit facility of $0.9 million.

On March 10, 2014, pursuant to the mandatory prepayment provisions under the Company’s credit agreement, the Company prepaid $1.0 million of the outstanding principal balance under its Term Loan B-2. The mandatory prepayment was calculated per the credit agreement, based on the Company’s and Nexstar’s consolidated first lien net leverage ratio, as defined in Nexstar’s credit agreement.

Effective April 30, 2014, the Company and Nexstar amended each of their credit agreements. The amendments reduced the Company’s total commitments under its Term Loan A Facility from $90.0 million to $60.0 million and increased Nexstar’s total commitments under its Term Loan A Facility from $144.0 million to $159.0 million. Pursuant to the terms of the amended credit agreements, the Company may also reallocate its unused Term Loan A Facility to Nexstar and Nexstar may reallocate its unused Term Loan A Facility to the Company. Additionally, the amendments increased the commitment fees on unused Term Loan A Facilities from 0.5% to 1.0% and extended the quarterly principal payments commencement to December 31, 2014.

Unused Commitments and Borrowing Availability

As of June 30, 2014, the Company had $30.0 million unused revolving loan commitment under its senior secured credit facility, all of which was available for borrowing, based on the covenant calculations. The Company also had $60.0 million of unused Term Loan A Facility commitment under its amended senior secured credit facility, all of which was available for borrowing as of June 30, 2014. Pursuant to the terms the Company’s and Nexstar’s amended credit agreements, the Company may reallocate any of its unused revolving loan commitments and unused Term Loan A Facility to Nexstar and Nexstar may also reallocate any of its unused revolving loan commitments of up to $75.0 million and Term Loan A Facility of up to $87.2 million to the Company.

Collateralization and Guarantees of Debt

Nexstar Broadcasting Group, Inc. (Nexstar’s ultimate parent) and its subsidiaries guarantees full payment of all obligations under the Mission senior secured credit facility in the event of Mission’s default. Similarly, Mission is a guarantor of Nexstar’s senior secured credit facility and the $525.0 million 6.875% senior unsecured notes issued by Nexstar (the “6.875% Notes”). The senior secured credit facilities are collateralized by a security interest in substantially all the combined assets, excluding FCC licenses, of Nexstar and Mission.

Debt Covenants

The Mission senior secured credit facility agreement does not contain financial covenant ratio requirements, but includes default provisions in the event Nexstar does not comply with all covenants contained in its credit agreement. Nexstar has informed the Company that it was in compliance with its debt covenants as of June 30, 2014.

Fair Value of Debt

The aggregate carrying amounts and estimated fair value of Mission’s debt were as follows (in thousands):

	June 30, 2014				December 31, 2013
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Term loans	$	230,582	$	230,982	$	232,465	$	233,299

The fair value of the term loans is computed based on borrowing rates currently available to Mission for bank loans with similar terms and average maturities. These fair value measurements are considered Level 3, as significant inputs to the fair value calculation are unobservable in the market.

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Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Guarantee by Mission of Nexstar 6.875% Senior Unsecured Notes [Member]
Guarantees of Nexstar Debt [Abstract]
Interest rate (in hundredths)	6.875%
Maximum guarantee exposure	$ 525.0
Maturity date	Nov. 15, 2020
Current exposure under the guarantee	525.0
Guarantee by Mission of Nexstar Credit Facility [Member]
Guarantees of Nexstar Debt [Abstract]
Maximum guarantee exposure	495.5
Guarantee by Mission of Nexstar Credit Facility [Member] | Term Loan A [Member]
Guarantees of Nexstar Debt [Abstract]
Maturity date	Jun. 28, 2018
Current exposure under the guarantee	71.3
Guarantee by Mission of Nexstar Credit Facility [Member] | Term Loan A [Member] | Minimum [Member]
Guarantees of Nexstar Debt [Abstract]
Term loan periodic payment percentage (in hundredths)	5.00%
Guarantee by Mission of Nexstar Credit Facility [Member] | Term Loan A [Member] | Maximum [Member]
Guarantees of Nexstar Debt [Abstract]
Term loan periodic payment percentage (in hundredths)	10.00%
Guarantee by Mission of Nexstar Credit Facility [Member] | Term Loan B-2 [Member]
Guarantees of Nexstar Debt [Abstract]
Maturity date	Oct. 01, 2020
Current exposure under the guarantee	$ 262.0
Term loan periodic payment percentage (in hundredths)	0.25%

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Acquisitions (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended	3 Months Ended	6 Months Ended	0 Months Ended		3 Months Ended	6 Months Ended
	Sep. 13, 2013 Stainless [Member]	Jun. 30, 2014 Stainless [Member]	Jun. 30, 2014 Stainless [Member]	Jun. 13, 2014 Parker [Member]	May 27, 2014 Parker [Member]	Jun. 30, 2014 Parker [Member]	Jun. 30, 2014 Parker [Member]
Business Acquisition [Line Items]
Purchase price of stations to be acquired	$ 15.3				$ 4.0
Deposits paid upon signing an agreement to acquire a business	0.2			3.2
Acquisition related costs		$ 0	$ 0			$ 0	$ 0

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Local Service Agreements with Nexstar (Tables)

6 Months Ended

Jun. 30, 2014

Local Service Agreements with Nexstar [Abstract]

Local Service Agreements In Effect With Nexstar

Under the local service agreements, Nexstar receives substantially all of the Company’s available cash, after satisfaction of operating costs and debt obligations. The Company anticipates that Nexstar will continue to receive substantially all of its available cash, after satisfaction of operating costs and debt obligations. In compliance with FCC regulations for both the Company and Nexstar, Mission maintains complete responsibility for and control over programming, finances, personnel and operations of its stations. Mission had the following local service agreements in effect with Nexstar as of June 30, 2014:

Station	Market	Type of Agreement	Expiration	Consideration from Nexstar
WFXP	Erie, PA	TBA	8/16/16	Monthly payments received from Nexstar
KHMT	Billings, MT	TBA	12/13/17	Monthly payments received from Nexstar
KJTL/KJBO-LP	Wichita Falls, TX-Lawton, OK	SSA JSA	5/31/19 5/31/19	$60 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WYOU	Wilkes Barre-Scranton, PA	SSA JSA	1/4/18 9/30/14	$35 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KODE	Joplin, MO-Pittsburg, KS	SSA JSA	3/31/22 9/30/14	$75 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KRBC	Abilene-Sweetwater, TX	SSA JSA	6/12/23 6/30/23	$25 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KSAN	San Angelo, TX	SSA JSA	5/31/24 5/31/24	$10 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WAWV	Terre Haute, IN	SSA JSA	5/8/23 5/8/23	$10 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KCIT/KCPN-LP	Amarillo, TX	SSA JSA	4/30/19 4/30/19	$50 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KAMC	Lubbock, TX	SSA JSA	2/15/19 2/15/19	$75 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KOLR	Springfield, MO	SSA JSA	2/15/19 2/15/19	$150 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WUTR	Utica, NY	SSA JSA	3/31/24 3/31/24	$10 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WTVO	Rockford, IL	SSA JSA	10/31/14 10/31/14	$75 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KTVE	Monroe, LA-El Dorado, AR	SSA JSA	1/16/18 1/16/18	$20 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WTVW	Evansville, IN	SSA JSA	11/30/19 11/30/19	$50 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
KLRT/KASN	Little Rock-Pine Bluff, AR	SSA JSA	1/1/21 1/1/21	$150 thousand per month paid to Nexstar 70% of net revenue received from Nexstar
WVNY	Burlington-Plattsburgh, VT	SSA JSA	3/1/21 3/1/21	$20 thousand per month paid to Nexstar 70% of net revenue received from Nexstar

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies [Abstract]

Commitments and Contingencies

8. Commitments and Contingencies

Guarantees of Nexstar Debt

Mission is a guarantor of and has pledged substantially all its assets, excluding FCC licenses, to guarantee Nexstar’s credit facility. Mission is also a guarantor of Nexstar’s 6.875% Notes. The 6.875% Notes are general senior unsecured obligations subordinated to all of Mission’s senior debt. In the event that Nexstar is unable to repay amounts due under these debt obligations, Mission will be obligated to repay such amounts. The maximum potential amount of future payments that Mission would be required to make under these guarantees would be generally limited to the amount of borrowings outstanding under Nexstar’s senior secured credit facility and 6.875% Notes. As of June 30, 2014, Nexstar had $525.0 million outstanding obligations under its 6.875% Notes due on November 15, 2020 and had a maximum commitment of $495.5 million under its senior secured credit facility, of which $262.0 million in Term Loan B-2 and $71.3 million in Term Loan A were outstanding.

Nexstar’s Term Loan B-2 is payable in consecutive quarterly installments of 0.25% of the aggregate principal, adjusted for any prepayments, with the remainder due in full at maturity on October 1, 2020. Nexstar’s Term Loan A is payable in quarterly installments that increase over time from 5.0% to 10.0% of the aggregate principal, adjusted for any prepayments, beginning December 31, 2014. The remainder of the principal is due at maturity on June 28, 2018.

Purchase Options Granted to Nexstar

In consideration of the guarantee of Mission’s bank credit facility by Nexstar Broadcasting Group, Inc. and its subsidiaries, Mission has granted Nexstar purchase options to acquire the assets and assume the liabilities of each Mission station, subject to FCC consent, for consideration equal to the greater of (1) seven times the station’s cash flow, as defined in the option agreement, less the amount of its indebtedness as defined in the option agreement, or (2) the amount of its indebtedness. Cash flow is defined as income or loss from operations, plus depreciation and amortization (including amortization of broadcast rights), interest income, non-cash trade and barter expenses, nonrecurring expenses (including time brokerage agreement fees), network compensation payments received or receivable and corporate management fees, less payments for broadcast rights, non-cash trade and barter revenue and network compensation revenue. Additionally, Mission’s shareholders have granted Nexstar an option to purchase any or all of the Company’s stock, subject to FCC consent, for a price equal to the pro rata portion of the greater of (1) five times the stations’ cash flow, as defined in the agreement, reduced by the amount of indebtedness, as defined in the agreement, or (2) $100,000. These option agreements (which expire on various dates between 2014 and 2023) are freely exercisable or assignable by Nexstar without consent or approval by Mission or its shareholders. The Company expects these option agreements to be renewed upon expiration.

Indemnification Obligations

In connection with certain agreements that the Company enters into in the normal course of its business, including local service agreements, business acquisitions and borrowing arrangements, the Company enters into contractual arrangements under which the Company agrees to indemnify the other party to such arrangement from losses, claims and damages incurred by the indemnified party for certain events as defined within the particular contract. Such indemnification obligations may not be subject to maximum loss clauses and the maximum potential amount of future payments the Company could be required to make under these indemnification arrangements may be unlimited. Historically, payments made related to these indemnifications have been insignificant and the Company has not incurred significant costs to defend lawsuits or settle claims related to these indemnification agreements.

Litigation

From time to time, the Company is involved with claims that arise out of the normal course of business. In the opinion of management, any resulting liability with respect to these claims would not have a material adverse effect on the Company’s financial position or results of operations.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2014

Summary of Significant Accounting Policies [Abstract]

Interim Financial Statements

Interim Financial Statements

The Condensed Financial Statements as of June 30, 2014, and for the three and six months ended June 30, 2014 and 2013, are unaudited. However, in the opinion of management, such financial statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of the financial information included herein in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The preparation of the Condensed Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Results of operations for interim periods are not necessarily indicative of results for the full year. These Condensed Financial Statements should be read in conjunction with the Financial Statements and related Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Balance Sheet as of December 31, 2013 has been derived from the audited Financial Statements as of that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

Financial Instruments

Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, broadcast rights payable, accounts payable and accrued expenses approximate fair value due to their short-term nature. See Note 6 for fair value disclosures related to the Company’s debt.

Basis of Presentation

Basis of Presentation

Certain prior year financial statement amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or shareholders’ deficit as previously reported.

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Intangible Assets and Goodwill (Tables)

6 Months Ended

Jun. 30, 2014

Intangible Assets and Goodwill [Abstract]

Intangible Assets Subject to Amortization

Intangible assets subject to amortization consisted of the following (in thousands):

	Estimated	June 30, 2014							December 31, 2013
	useful life,			Accumulated							Accumulated
	in years	Gross		Amortization			Net		Gross		Amortization			Net
Network affiliation agreements	15	$	84,505	$	(63,174	)	$	21,331	$	84,505	$	(61,716	)	$	22,789
Other definite-lived intangible assets	1-15		15,661		(14,437	)		1,224		15,661		(14,412	)		1,249
Other intangible assets		$	100,166	$	(77,611	)	$	22,555	$	100,166	$	(76,128	)	$	24,038

Estimated Amortization Expense of Definite Lived Intangibles Assets

The following table presents the Company’s estimate of amortization expense for the remainder of 2014, each of the five succeeding years ended December 31 and thereafter for definite-lived intangible assets as of June 30, 2014 (in thousands):

Remainder of 2014	$	1,385
2015		2,579
2016		2,579
2017		2,456
2018		2,164
2019		1,954
Thereafter		9,438
	$	22,555

Goodwill and FCC Licenses

The carrying amounts of goodwill and FCC licenses were as follows (in thousands):

	Goodwill							FCC Licenses
			Accumulated							Accumulated
	Gross		Impairment			Net		Gross		Impairment			Net
Balance as of December 31, 2013	$	34,039	$	(1,550	)	$	32,489	$	52,260	$	(10,697	)	$	41,563
Balance as of June 30, 2014		34,039		(1,550	)		32,489		52,260		(10,697	)		41,563

XML

Intangible Assets and Goodwill (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Gross	$ 100,166	$ 100,166
Accumulated Amortization	(77,611)	(76,128)
Net	22,555	24,038
Estimated amortization expense of definite lived intangibles assets [Abstract]
Remainder of 2014	1,385
2015	2,579
2016	2,579
2017	2,456
2018	2,164
2019	1,954
Thereafter	9,438
Net	22,555	24,038
Goodwill [Roll Forward]
Goodwill, Gross	34,039	34,039
Goodwill, Accumulated Impairment	(1,550)	(1,550)
Goodwill, Net	32,489	32,489
FCC Licenses [Member]
FCC Licenses [Abstract]
FCC Licenses, Gross	52,260	52,260
FCC Licenses, Accumulated Impairment	(10,697)	(10,697)
FCC Licenses, Net	41,563	41,563
Network Affiliation Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	15 years	15 years
Gross	84,505	84,505
Accumulated Amortization	(63,174)	(61,716)
Net	21,331	22,789
Estimated amortization expense of definite lived intangibles assets [Abstract]
Net	21,331	22,789
Other Definite-Lived Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	15,661	15,661
Accumulated Amortization	(14,437)	(14,412)
Net	1,224	1,249
Estimated amortization expense of definite lived intangibles assets [Abstract]
Net	$ 1,224	$ 1,249
Other Definite-Lived Intangible Assets [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	1 year	1 year
Other Definite-Lived Intangible Assets [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	15 years	15 years

XML

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:
Net income	$ 6,782	$ 1,500
Adjustments to reconcile net income to net cash used in operating activities:
Deferred income taxes	4,036	912
Provision for bad debts	29	43
Depreciation of property and equipment	1,456	1,921
Amortization of intangible assets	1,483	3,736
Amortization of debt financing costs	282	255
Amortization of broadcast rights, excluding barter	835	950
Payments for broadcast rights	(846)	(1,235)
Deferred gain recognition	(123)	(99)
Amortization of debt discount	31	260
Loss on extinguishment of debt	21	0
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(1,148)	(2,426)
Prepaid expenses and other current assets	(56)	21
Other noncurrent assets	(23)	(53)
Accounts payable and accrued expenses	957	1,093
Interest payable	0	(219)
Other noncurrent liabilities	(69)	(216)
Due to/due from Nexstar Broadcasting, Inc.	(9,283)	(7,972)
Net cash provided by (used in) operating activities	4,364	(1,529)
Cash flows from investing activities:
Purchases of property and equipment	(115)	(48)
Deposits and payments for acquisitions	(3,200)	(59,338)
Net cash used in investing activities	(3,315)	(59,386)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	0	65,000
Repayments of long-term debt	(1,914)	(260)
Payments for debt financing costs	(129)	(2,850)
Net cash (used in) provided by financing activities	(2,043)	61,890
Net (decrease) increase in cash and cash equivalents	(994)	975
Cash and cash equivalents at beginning of period	3,716	318
Cash and cash equivalents at end of period	2,722	1,293
Supplemental information:
Interest paid	4,703	8,686
Income taxes paid, net	425	118
Non-cash investing activities:
Accrued debt financing costs	$ 0	$ 181

XML

Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2014

Intangible Assets and Goodwill [Abstract]

Intangible Assets and Goodwill

5. Intangible Assets and Goodwill

Intangible assets subject to amortization consisted of the following (in thousands):

	Estimated	June 30, 2014							December 31, 2013
	useful life,			Accumulated							Accumulated
	in years	Gross		Amortization			Net		Gross		Amortization			Net
Network affiliation agreements	15	$	84,505	$	(63,174	)	$	21,331	$	84,505	$	(61,716	)	$	22,789
Other definite-lived intangible assets	1-15		15,661		(14,437	)		1,224		15,661		(14,412	)		1,249
Other intangible assets		$	100,166	$	(77,611	)	$	22,555	$	100,166	$	(76,128	)	$	24,038

The following table presents the Company’s estimate of amortization expense for the remainder of 2014, each of the five succeeding years ended December 31 and thereafter for definite-lived intangible assets as of June 30, 2014 (in thousands):

Remainder of 2014	$	1,385
2015		2,579
2016		2,579
2017		2,456
2018		2,164
2019		1,954
Thereafter		9,438
	$	22,555

The carrying amounts of goodwill and FCC licenses were as follows (in thousands):

	Goodwill							FCC Licenses
			Accumulated							Accumulated
	Gross		Impairment			Net		Gross		Impairment			Net
Balance as of December 31, 2013	$	34,039	$	(1,550	)	$	32,489	$	52,260	$	(10,697	)	$	41,563
Balance as of June 30, 2014		34,039		(1,550	)		32,489		52,260		(10,697	)		41,563

Indefinite-lived intangible assets are not subject to amortization, but are tested for impairment annually or whenever events or changes in circumstances indicate that such assets might be impaired. As of June 30, 2014, the Company did not identify any events that would trigger an impairment assessment.

XML

Local Service Agreements with Nexstar (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Minimum term of agreements	8 years
Maximum term of agreements	10 years
WFXP [Member] | Time Brokerage Agreement [Member]
Local Service Agreement [Abstract]
Station	WFXP
Market	Erie, PA
Type of Agreement	TBA
Expiration date	August 16, 2016
Consideration received for local servicing agreement	Monthly payments received from Nexstar
KHMT [Member] | Time Brokerage Agreement [Member]
Local Service Agreement [Abstract]
Station	KHMT
Market	Billings, MT
Type of Agreement	TBA
Expiration date	December 13, 2017
Consideration received for local servicing agreement	Monthly payments received from Nexstar
KJTL/KJBO-LP [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	KJTL/KJBO-LP
Market	Wichita Falls, TX-Lawton, OK
Type of Agreement	SSA
Expiration date	May 31, 2019
Monthly consideration paid to Nexstar	$ 60
KJTL/KJBO-LP [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	May 31, 2019
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
WYOU [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	WYOU
Market	Wilkes Barre-Scranton, PA
Type of Agreement	SSA
Expiration date	January 4, 2018
Monthly consideration paid to Nexstar	35
WYOU [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	September 30, 2014
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
KODE [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	KODE
Market	Joplin, MO-Pittsburg, KS
Type of Agreement	SSA
Expiration date	March 31, 2022
Monthly consideration paid to Nexstar	75
KODE [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	September 30, 2014
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
KRBC [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	KRBC
Market	Abilene-Sweetwater, TX
Type of Agreement	SSA
Expiration date	June 12, 2023
Monthly consideration paid to Nexstar	25
KRBC [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	June 30, 2023
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
KSAN [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	KSAN
Market	San Angelo, TX
Type of Agreement	SSA
Expiration date	May 31, 2024
Monthly consideration paid to Nexstar	10
KSAN [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	May 31, 2024
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
WAWV [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	WAWV
Market	Terre Haute, IN
Type of Agreement	SSA
Expiration date	May 8, 2023
Monthly consideration paid to Nexstar	10
WAWV [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	May 8, 2023
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
KCIT/KCPN-LP [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	KCIT/KCPN-LP
Market	Amarillo, TX
Type of Agreement	SSA
Expiration date	April 30, 2019
Monthly consideration paid to Nexstar	50
KCIT/KCPN-LP [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	April 30, 2019
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
KAMC [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	KAMC
Market	Lubbock, TX
Type of Agreement	SSA
Expiration date	February 15, 2019
Monthly consideration paid to Nexstar	75
KAMC [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	February 15, 2019
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
KOLR [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	KOLR
Market	Springfield, MO
Type of Agreement	SSA
Expiration date	February 15, 2019
Monthly consideration paid to Nexstar	150
KOLR [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	February 15, 2019
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
WUTR [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	WUTR
Market	Utica, NY
Type of Agreement	SSA
Expiration date	March 31, 2024
Monthly consideration paid to Nexstar	10
WUTR [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	March 31, 2024
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
WTVO [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	WTVO
Market	Rockford, IL
Type of Agreement	SSA
Expiration date	October 31, 2014
Monthly consideration paid to Nexstar	75
WTVO [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	October 31, 2014
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
KTVE [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	KTVE
Market	Monroe, LA-El Dorado, AR
Type of Agreement	SSA
Expiration date	January 16, 2018
Monthly consideration paid to Nexstar	20
KTVE [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	January 16, 2018
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
WTVW [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	WTVW
Market	Evansville, IN
Type of Agreement	SSA
Expiration date	November 30, 2019
Monthly consideration paid to Nexstar	50
WTVW [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	November 30, 2019
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
KLRT TV KASN [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	KLRT/KASN
Market	Little Rock-Pine Bluff, AR
Type of Agreement	SSA
Expiration date	January 1, 2021
Monthly consideration paid to Nexstar	150
KLRT TV KASN [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	January 1, 2021
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%
WVNY [Member] | Shared Services Agreement [Member]
Local Service Agreement [Abstract]
Station	WVNY
Market	Burlington-Plattsburgh, VT
Type of Agreement	SSA
Expiration date	March 1, 2021
Monthly consideration paid to Nexstar	$ 20
WVNY [Member] | Joint Sales Agreement [Member]
Local Service Agreement [Abstract]
Type of Agreement	JSA
Expiration date	March 1, 2021
Percentage of station's net revenue collected per month received from Nexstar (in hundredths)	70.00%