Segment Data

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Data

Note 16:  Segment Data

The Company evaluates the performance of its operating segments based on net revenue and operating income. The Company’s broadcast segment includes (i) television stations and related community focused websites that Nexstar owns, operates, programs or provides sales and other services to in various markets across the United States, (ii) digital multicast network services, (iii) WGN America, a national general entertainment cable network, and (iv) WGN-AM, a Chicago radio station. The other activities of the Company include (i) corporate functions, (ii) the management of certain real estate assets, including revenues from leasing certain owned office and production facilities, (iii) digital businesses and (iv) eliminations.

Segment financial information is included in the following tables for the periods presented (in thousands):

Three Months Ended September 30, 2020	Broadcast		Other			Consolidated
Net revenue	$	1,094,804	$	23,399		$	1,118,203
Depreciation		31,096		5,515			36,611
Amortization of intangible assets		68,591		674			69,265
Income (loss) from operations		377,172		(33,575	)		343,597

Nine Months Ended September 30, 2020	Broadcast		Other			Consolidated
Net revenue	$	3,060,279	$	64,379		$	3,124,658
Depreciation		91,187		16,600			107,787
Amortization of intangible assets		206,617		2,743			209,360
Income (loss) from operations		958,592		(113,727	)		844,865

Three Months Ended September 30, 2019	Broadcast		Other			Consolidated
Net revenue	$	637,148	$	26,427		$	663,575
Depreciation		26,538		2,825			29,363
Amortization of intangible assets		37,215		5,228			42,443
Income (loss) from operations		189,408		(67,793	)		121,615

Nine Months Ended September 30, 2019	Broadcast		Other			Consolidated
Net revenue	$	1,858,226	$	81,008		$	1,939,234
Depreciation		75,587		9,303			84,890
Amortization of intangible assets		98,830		16,708			115,538
Income (loss) from operations		550,001		(151,368	)		398,633

As of September 30, 2020	Broadcast		Other		Consolidated
Goodwill	$	2,861,314	$	-	$	2,861,314
Assets		12,169,206		1,121,296		13,290,502

As of December 31, 2019	Broadcast		Other		Consolidated
Goodwill	$	2,996,875	$	-	$	2,996,875
Assets		12,918,966		1,070,771		13,989,737

The following tables present the disaggregation of the Company’s revenue for the periods presented (in thousands):

Three Months Ended September 30, 2020	Broadcast		Other		Consolidated
Core advertising (local and national)	$	381,929	$	-	$	381,929
Political advertising		132,387		-		132,387
Distribution		538,271		105		538,376
Digital		33,488		21,743		55,231
Other		6,609		1,551		8,160
Trade		2,120		-		2,120
Total net revenue	$	1,094,804	$	23,399	$	1,118,203

Nine Months Ended September 30, 2020	Broadcast		Other		Consolidated
Core advertising (local and national)	$	1,097,509	$	39	$	1,097,548
Political advertising		209,294		-		209,294
Distribution		1,622,639		1,997		1,624,636
Digital		100,949		57,383		158,332
Other		22,015		4,960		26,975
Trade		7,873		-		7,873
Total net revenue	$	3,060,279	$	64,379	$	3,124,658

Three Months Ended September 30, 2019	Broadcast		Other		Consolidated
Core advertising (local and national)	$	290,213	$	-	$	290,213
Political advertising		10,899		-		10,899
Distribution		294,808		-		294,808
Digital		32,385		25,752		58,137
Other		4,995		675		5,670
Trade		3,848		-		3,848
Total net revenue	$	637,148	$	26,427	$	663,575

Nine Months Ended September 30, 2019	Broadcast		Other		Consolidated
Core advertising (local and national)	$	809,668	$	-	$	809,668
Political advertising		15,363		-		15,363
Distribution		923,050		-		923,050
Digital		86,906		80,303		167,209
Other		12,454		705		13,159
Trade		10,785		-		10,785
Total net revenue	$	1,858,226	$	81,008	$	1,939,234

The Company is a television broadcasting and digital media company focused on the acquisition, development and operation of television stations and interactive community websites and digital media services in medium-sized markets in the United States.

Advertising revenue (core, political and digital) is positively affected by national and regional political campaigns and certain events such as the Olympic Games or the Super Bowl. Company 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 congressional and presidential elections occur and advertising is aired during the Olympic Games.

The Company receives compensation from MVPDs and OVDs in return for the consent to the retransmission of the signals of its television stations and the carriage of WGN America. Distribution revenue is recognized at the point in time the broadcast signal is delivered to the distributors and is based on a price per subscriber.