Note 3: Segment Reporting

The Company identified two reportable segments based on reporting structure and the go-to-market for the Company’s service and product offerings. The two reportable segments are Publishing and Marketing Services.

The Publishing segment includes the Company’s core print and digital operations associated with its newspapers, niche publications and related websites and apps. These operations generate revenue from sales of advertising within its newspaper and digital platforms, subscription and retail sales of its newspapers, commercial printing and distribution services, primarily related to national and regional newspapers, and preprint advertising. Businesses within the Publishing segment leverage its production facilities, subscriber and advertiser base, and digital news platforms to provide additional contribution margin. The Publishing segment’s operating results includes $6,361 and $4,145 of corporate expense for the three months ended June 30, 2019 and 2018, respectively, and $11,566 and $10,893 for the six months ended June 30, 2019 and 2018, respectively. The Company evaluates Publishing operations based on operating profit and cash flows from operating activities.

The Marketing Services segment includes the operations of DMV Digital Holdings Company (“DMV Holdings”) and digital advertising through Connect (programmatic advertising). The Company operates this integrated portfolio of assets within its Marketing Services segment as separate businesses that sell digital marketing and advertising through different channels, including programmatic advertising and content marketing within the social media environment.

Based on the organization of the Company’s structure and organizational chart, the Company’s chief operating decision maker (the “CODM”) is its Chief Executive Officer, Robert W. Decherd. The CODM allocates resources and capital to the Publishing and Marketing Services segments at the segment level.

In the first quarter of 2019, the Company determined one of the Company’s business units, previously reported in the Publishing segment, is now providing services and products more closely aligned with the Marketing Services segment. Beginning January 1, 2019, this business unit will be reported in the Marketing Services segment. The 2018 financial information by segment was recast for comparative purposes.

The tables below set forth summarized financial information for the Company’s reportable segments.



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
		(Restated)		(Recast)		(Restated)		(Recast)
Revenue
Publishing	$	40,915	$	45,085	$	81,618	$	88,714
Marketing Services		6,200		6,084		12,086		11,908
Total	$	47,115	$	51,169	$	93,704	$	100,622

Operating Income (Loss)
Publishing	$	22,742	$	(1,799)	$	18,702	$	(8,101)
Marketing Services		113		432		225		517
Total	$	22,855	$	(1,367)	$	18,927	$	(7,584)

Noncash Expenses
Publishing
Depreciation	$	2,263	$	2,498	$	4,580	$	4,934
Gain on sale of assets, net		(25,908)		—		(25,908)		—
Asset impairments		—		(22)		—		(22)
Total	$	(23,645)	$	2,476	$	(21,328)	$	4,912

Marketing Services
Depreciation	$	70	$	37	$	139	$	74
Amortization		140		200		216		400
Total	$	210	$	237	$	355	$	474



	June 30,		December 31,
	2019		2018
		(Restated)		(Restated)
Total Assets
Publishing	$	141,938	$	117,289
Marketing Services		12,293		5,271
Total	$	154,231	$	122,560