Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed using the weighted-average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares are calculated using the treasury stock method. They consist of stock options and restricted stock units outstanding during the period and reflect the potential dilution that could occur if common shares were issued upon exercise of stock options and vesting of restricted stock units. The following table shows the amounts used in computing Nexstar’s diluted shares (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Weighted average shares outstanding - basic		44,979		46,114		45,313		45,997
Dilutive effect of equity incentive plan instruments		1,758		-		1,751		1,922
Weighted average shares outstanding - diluted		46,737		46,114		47,064		47,919

Non Guarantor VIEs [Member]

Consolidated VIEs

The following are assets of consolidated VIEs, excluding intercompany amounts, that are not available to settle the obligations of Nexstar and the liabilities of consolidated VIEs, excluding intercompany amounts, for which their creditors do not have recourse to the general credit of Nexstar (in thousands):

	September 30, 2020		December 31, 2019
Current assets	$	9,735	$	9,837
Property and equipment, net		19,776		19,586
Goodwill		102,447		102,447
FCC licenses		151,782		138,482
Network affiliation agreements, net		51,767		55,378
Other intangible assets, net		-		22
Other noncurrent assets, net		4,106		6,818
Total assets	$	339,613	$	332,570

Current liabilities	$	19,819	$	19,653
Noncurrent liabilities		40,010		42,012
Total liabilities	$	59,829	$	61,665

Consolidated VIEs [Member]

Consolidated VIEs

The carrying amounts and classification of the assets and liabilities, excluding intercompany amounts, of the VIEs which have been included in the Condensed Consolidated Balance Sheets were as follows (in thousands):

	September 30, 2020		December 31, 2019
Current assets:
Cash and cash equivalents	$	9,153	$	12,944
Accounts receivable, net		19,655		17,995
Prepaid expenses and other current assets		2,541		1,921
Total current assets		31,349		32,860
Property and equipment, net		47,360		42,308
Goodwill		138,936		135,634
FCC licenses		151,782		138,482
Network affiliation agreements, net		91,118		66,679
Other intangible assets, net		1,250		513
Other noncurrent assets, net		12,412		12,749
Total assets	$	474,207	$	429,225

Current liabilities:
Current portion of debt	$	1,492	$	3,433
Interest payable		454		834
Other current liabilities		19,819		19,653
Total current liabilities		21,765		23,920
Debt		244,259		241,190
Deferred tax liabilities		22,512		22,505
Other noncurrent liabilities		17,498		19,507
Total liabilities	$	306,034	$	307,122

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details