Guarantor Financial Information

9 Months Ended

Sep. 30, 2016

Condensed Financial Statements Guarantor Financials [Abstract]

Guarantor Financial Information

Guarantor Financial Information

LIN Television, a 100% owned subsidiary of Media General, is the primary obligor of the 2021 Notes and 2022 Notes. Media General fully and unconditionally guarantees all of LIN Television’s obligations under the 2021 Notes and the 2022 Notes on a joint and several basis. Additionally, all of the consolidated 100% owned subsidiaries of LIN Television fully and unconditionally guarantee LIN Television’s obligations under the 2021 Notes and 2022 Notes on a joint and several basis. There are certain limitations in the ability of the subsidiaries to pay dividends to Media General. The following financial information presents condensed consolidating balance sheets, statements of comprehensive income, and statements of cash flows for Media General, LIN Television (as the issuer), the Guarantor Subsidiaries, and the Non-Guarantor Subsidiaries, together with certain eliminations.

Media General, Inc.

Condensed Consolidating Balance Sheet

September 30, 2016

(in thousands)

	Media General		LIN Television Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—		$	52,096	$	5,726	$	—		$	57,822
Trade accounts receivable, net	—		79,293			223,404		9,129		—			311,826
Prepaid expenses and other current assets	—		2,451			12,398		666		—			15,515
Total current assets	—		81,744			287,898		15,521		—			385,163
Property and equipment, net	—		148,182			295,510		1,899		—			445,591
Other assets, net	—		676			28,592		1,187		—			30,455
Definite lived intangible assets, net	—		343,143			414,908		29,949		—			788,000
Broadcast licenses	—		—			1,025,800		71,300		—			1,097,100
Goodwill	—		527,077			902,100		21,859		—			1,451,036
Advances to consolidated subsidiaries	—		(222,832		)	220,431		2,401		—			—
Investment in consolidated subsidiaries	1,367,238		1,260,899			—		—		(2,628,137		)	—
Total assets	$	1,367,238	$	2,138,889		$	3,175,239	$	144,116	$	(2,628,137	)	$	4,197,345
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Trade accounts payable	$	—	$	1,153		$	16,897	$	24	$	—		$	18,074
Accrued salaries and wages	—		4,549			20,368		167		—			25,084
Accrued expenses and other current liabilities	—		22,384			81,755		1,781		—			105,920
Current installments of long-term debt	—		—			—		3,547		—			3,547
Current installments of obligation under capital leases	—		607			190		—		—			797
Total current liabilities	—		28,693			119,210		5,519		—			153,422
Long-term debt, net	—		668,632			1,457,278		21,426		—			2,147,336
Deferred tax liability and other long-term tax liabilities	—		60,473			252,540		—		—			313,013
Long-term capital lease obligations	—		12,636			917		—		—			13,553
Retirement and postretirement plans	—		—			172,599		—		—			172,599
Other liabilities	—		1,217			20,123		4,800		—			26,140
Total liabilities	—		771,651			2,022,667		31,745		—			2,826,063
Noncontrolling interests	—		—			—		4,044		—			4,044
Total stockholders' equity (deficit)	1,367,238		1,367,238			1,152,572		108,327		(2,628,137		)	1,367,238
Total liabilities, noncontrolling interest and stockholders' equity (deficit)	$	1,367,238	$	2,138,889		$	3,175,239	$	144,116	$	(2,628,137	)	$	4,197,345

Media General, Inc.

Condensed Consolidating Balance Sheet

December 31, 2015

(in thousands)

	Media General		LIN Television Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	1,103		$	35,925	$	4,063		$	—		$	41,091
Trade accounts receivable, net	—		75,866			192,306		30,302			—			298,474
Prepaid expenses and other current assets	—		3,264			10,441		1,378			—			15,083
Total current assets	—		80,233			238,672		35,743			—			354,648
Property and equipment, net	—		158,627			309,160		2,750			—			470,537
Other assets, net	—		7,199			27,523		3,348			—			38,070
Definite lived intangible assets, net	—		368,011			458,261		44,857			—			871,129
Broadcast licenses	—		—			1,025,800		71,300			—			1,097,100
Goodwill	—		527,077			924,708		92,839			—			1,544,624
Advances to consolidated subsidiaries	—		(206,396		)	223,051		(16,655		)	—			—
Investment in consolidated subsidiaries	1,447,970		1,319,392			—		—			(2,767,362		)	—
Total assets	$	1,447,970	$	2,254,143		$	3,207,175	$	234,182		$	(2,767,362	)	$	4,376,108
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Trade accounts payable	$	—	$	2,010		$	30,689	$	3,101		$	—		$	35,800
Accrued salaries and wages	—		2,022			19,016		427			—			21,465
Accrued expenses and other current liabilities	—		23,237			68,101		4,162			—			95,500
Current installments of long-term debt	—		—			—		3,804			—			3,804
Current installments of obligation under capital leases	—		575			256		28			—			859
Total current liabilities	—		27,844			118,062		11,522			—			157,428
Long-term debt, net	—		667,867			1,507,181		24,062			—			2,199,110
Deferred tax liability and other long-term tax liabilities	—		62,785			253,232		(783		)	—			315,234
Long-term capital lease obligations	—		12,953			1,059		—			—			14,012
Retirement and postretirement plans	—		25,917			157,070		—			—			182,987
Other liabilities	—		8,807			20,999		5,114			—			34,920
Total liabilities	—		806,173			2,057,603		39,915			—			2,903,691
Noncontrolling interests	—		—			—		24,447			—			24,447
Total stockholders' equity (deficit)	1,447,970		1,447,970			1,149,572		169,820			(2,767,362		)	1,447,970
Total liabilities, noncontrolling interest and stockholders' equity (deficit)	$	1,447,970	$	2,254,143		$	3,207,175	$	234,182		$	(2,767,362	)	$	4,376,108

Media General, Inc.

Condensed Consolidating Statement of Comprehensive Income

For the Three Months Ended September 30, 2016

(in thousands)

	Media General			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries				Eliminations			Consolidated
Net operating revenue	$	—		$	107,474		$	270,832		$	7,168			$	(8,118	)	$	377,356
Operating costs:
Operating expenses, excluding depreciation expense	—			42,888			113,099			3,253				(4,425		)	154,815
Selling, general and administrative expenses	—			21,793			51,512			1,335				(17		)	74,623
Amortization of program licenses rights	—			4,745			7,978			444				(501		)	12,666
Corporate and other expenses	—			—			8,666			5			—	—			8,671
Depreciation and amortization	—			14,749			25,153			860				—			40,762
Loss related to property and equipment, net	—			100			41			2				—			143
Goodwill and other asset impairment	—			—			112,511			—				—			112,511
Merger-related expenses	—			—			1,360			—				—			1,360
Restructuring expenses	—			—			(45		)	—				—			(45		)
Operating income (loss)	—			23,199			(49,443		)	1,269				(3,175		)	(28,150		)
Other income (expense):
Interest expense	—			(10,715		)	(17,569		)	(242		)		—			(28,526		)
Debt modification and extinguishment costs	—			—			(928		)	—				—			(928		)
Intercompany income and (expenses)	—			(10,252		)	10,252			—				—			—
Equity in income (loss) from operations of consolidated subsidiaries	(68,707		)	(68,748		)	—			—				137,455			—
Other, net	—			—			79			—				—			79
Total other income (expense)	(68,707		)	(89,715		)	(8,166		)	(242		)		137,455			(29,375		)
Income (loss) before income taxes	(68,707		)	(66,516		)	(57,609		)	1,027				134,280			(57,525		)
Income tax expense	—			(2,191		)	(7,838		)	—				—			(10,029		)
Net income (loss)	$	(68,707	)	$	(68,707	)	$	(65,447	)	$	1,027			$	134,280		$	(67,554	)
Net income (loss) attributable to noncontrolling interest	—			—			—			1,153				—			1,153
Net income (loss) attributable to Media General	$	(68,707	)	$	(68,707	)	$	(65,447	)	$	(126	)		$	134,280		$	(68,707	)
Other comprehensive income	—			—			—			—				—			—
Total comprehensive income (loss) attributable to Media General	$	(68,707	)	$	(68,707	)	$	(65,447	)	$	(126	)		$	134,280		$	(68,707	)

Media General, Inc.

Condensed Consolidating Statement of Comprehensive Income

For the Nine Months Ended September 30, 2016

(in thousands)

	Media General			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net operating revenue	$	—		$	313,684		$	764,954		$	32,281		$	(27,394	)	$	1,083,525
Operating costs:
Operating expenses, excluding depreciation expense	—			127,226			328,015			20,366			(16,050		)	459,557
Selling, general and administrative expenses	—			67,592			157,267			4,575			(332		)	229,102
Amortization of program licenses rights	—			13,888			22,961			1,462			(1,503		)	36,808
Corporate and other expenses	—			—			37,110			14			—			37,124
Depreciation and amortization	—			43,737			73,992			3,491			—			121,220
(Gain) loss related to property and equipment, net	—			111			(749		)	100			—			(538		)
Goodwill and other asset impairment	—			—			112,511			—			—			112,511
Merger-related expenses	—			—			68,803			—			—			68,803
Restructuring expenses	—			—			4,933			—			—			4,933
Operating income (loss)	—			61,130			(39,889		)	2,273			(9,509		)	14,005
Other income (expense):
Interest expense	—			(32,076		)	(52,763		)	(772		)	—			(85,611		)
Debt modification and extinguishment costs	—			—			(928		)	—			—			(928		)
Intercompany income and (expenses)	—			(31,207		)	31,551			(344		)	—			—
Equity in income (loss) from operations of consolidated subsidiaries	(76,399		)	(62,497		)	—			—			138,896			—
Other, net	—			(12		)	287			—			—			275
Total other income (expense)	(76,399		)	(125,792		)	(21,853		)	(1,116		)	138,896			(86,264		)
Income (loss) before taxes	(76,399		)	(64,662		)	(61,742		)	1,157			129,387			(72,259		)
Income tax benefit (expense)	—			(11,737		)	9,339			618			—			(1,780		)
Net income (loss)	$	(76,399	)	$	(76,399	)	$	(52,403	)	$	1,775		$	129,387		$	(74,039	)
Net income (loss) attributable to noncontrolling interest	—			—			—			2,360			—			2,360
Net income (loss) attributable to Media General	$	(76,399	)	$	(76,399	)	$	(52,403	)	$	(585	)	$	129,387		$	(76,399	)
Other comprehensive income	—			—			—			—			—			—
Total comprehensive income (loss) attributable to Media General	$	(76,399	)	$	(76,399	)	$	(52,403	)	$	(585	)	$	129,387		$	(76,399	)

Media General, Inc.

Condensed Consolidating Statement of Comprehensive Income

For the Three Months Ended September 30, 2015

(in thousands)

	Media General			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Net operating revenue	$	—		$	91,179		$	215,524		$	22,405		$	(7,372	)	$	321,736
Operating costs:
Operating expenses, excluding depreciation expense	—			40,149			93,562			14,360			(4,579		)	143,492
Selling, general and administrative expenses	—			22,960			43,340			12,631			(154		)	78,777
Amortization of program license rights	—			4,494			7,781			547			—			12,822
Corporate and other expenses	—			3,111			9,511			(24		)	—			12,598
Depreciation and amortization	—			15,055			24,732			598			—			40,385
(Gain) loss related to property and equipment, net	—			15			81			—			—			96
Goodwill impairment	—			—			52,862			—			—			52,862
Merger-related expenses	—			704			9,310			—			—			10,014
Restructuring expenses	—			—			1,132			—			—			1,132
Operating income (loss)	—			4,691			(26,787		)	(5,707		)	(2,639		)	(30,442		)
Other income (expense):
Interest expense, net	—			(11,174		)	(18,113		)	(194		)	—			(29,481		)
Debt modification and extinguishment costs	—			—			(365		)	—			—			(365		)
Intercompany income and (expenses)	—			(22,965		)	23,289			(324		)	—			—
Equity in income (loss) from operations of consolidated subsidiaries	(48,493		)	(14,587		)	—			—			63,080			—
Other, net	—			(13		)	40			—			—			27
Total other income (expense)	(48,493		)	(48,739		)	4,851			(518		)	63,080			(29,819		)
Income (loss) before income taxes	(48,493		)	(44,048		)	(21,936		)	(6,225		)	60,441			(60,261		)
Income tax benefit (expense)	—			(4,445		)	9,424			(605		)	—			4,374
Net income (loss)	$	(48,493	)	$	(48,493	)	$	(12,512	)	$	(6,830	)	$	60,441		$	(55,887	)
Net income (loss) attributable to noncontrolling interests	—			—			—			(7,394		)	—			(7,394		)
Net income (loss) attributable to Media General	$	(48,493	)	$	(48,493	)	$	(12,512	)	$	564		$	60,441		$	(48,493	)
Other comprehensive income	—			—			—			—			—			—
Total comprehensive income (loss) attributable to Media General	$	(48,493	)	$	(48,493	)	$	(12,512	)	$	564		$	60,441		$	(48,493	)

Media General, Inc.

Condensed Consolidating Statement of Comprehensive Income

For the Nine Months Ended September 30, 2015

(in thousands)

	Media General			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Net operating revenue	$	—		$	273,655		$	632,024		$	53,088		$	(19,774	)	$	938,993
Operating costs:
Operating expenses, excluding depreciation expense	—			118,042			265,731			31,758			(11,994		)	403,537
Selling, general and administrative expenses	—			68,677			149,567			20,920			(866		)	238,298
Amortization of program license rights	—			13,035			22,132			1,460			—			36,627
Corporate and other expenses	—			8,973			28,672			(30		)	—			37,615
Depreciation and amortization	—			44,713			73,966			4,607			—			123,286
(Gain) loss related to property and equipment, net	—			144			(472		)	—			—			(328		)
Goodwill and other asset impairment	—			—			52,862			—			—			52,862
Merger-related expenses	—			3,028			15,879			—			—			18,907
Restructuring expenses	—			—			1,132			—			—			1,132
Operating income (loss)	—			17,043			22,555			(5,627		)	(6,914		)	27,057
Other income (expense):
Interest expense, net	—			(31,379		)	(57,525		)	(888		)	—			(89,792		)
Debt modification and extinguishment costs	—			—			(2,805		)	—			—			(2,805		)
Intercompany income and (expenses)	—			(29,263		)	30,005			(742		)	—			—
Equity in income (loss) from operations of consolidated subsidiaries	(54,291		)	(12,510		)	—			—			66,801			—
Other, net	—			75			864			5,000			—			5,939
Total other income (expense)	(54,291		)	(73,077		)	(29,461		)	3,370			66,801			(86,658		)
Income (loss) before income taxes	(54,291		)	(56,034		)	(6,906		)	(2,257		)	59,887			(59,601		)
Income tax benefit (expense)	—			1,743			1,551			621			—			3,915
Net income (loss)	$	(54,291	)	$	(54,291	)	$	(5,355	)	$	(1,636	)	$	59,887		$	(55,686	)
Net income (loss) attributable to noncontrolling interests	—			—			(178		)	(1,217		)	—			(1,395		)
Net income (loss) attributable to Media General	$	(54,291	)	$	(54,291	)	$	(5,177	)	$	(419	)	$	59,887		$	(54,291	)
Other comprehensive income	—			—			—			—			—			—
Total comprehensive income (loss) attributable to Media General	$	(54,291	)	$	(54,291	)	$	(5,177	)	$	(419	)	$	59,887		$	(54,291	)

Media General, Inc.

Condensed Consolidating Statement of Cash Flows

Year to date through September 30, 2016

(in thousands)

	Media General		LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	—	$	10,697		$	128,117		$	2,842		$	—		$	141,656
Cash flows from investing activities:
Capital expenditures	—		(8,723		)	(24,931		)	(285		)	—			(33,939		)
Proceeds from the sale of PP&E	—		40			4,104			2,023			—			6,167
Receipt of dividend	—		58,508			—			—			(58,508		)	—
Advances on intercompany borrowings	—		(2,644		)	—			—			2,644			—
Payments from intercompany borrowings	—		—			58,508			—			(58,508		)	—
Other, net	—		—			(165		)	—			—			(165		)
Net cash provided (used) by investing activities	—		47,181			37,516			1,738			(114,372		)	(27,937		)
Cash flows from financing activities:
Borrowings under Media General Revolving Credit Facility	—		—			60,000			—			—			60,000
Repayments under Media General Revolving Credit Facility	—		—			(60,000		)	—			—			(60,000		)
Repayment of borrowings under Media General Credit Agreement	—		—			(60,000		)	—			—			(60,000		)
Repayment of borrowings under Shield Media Credit Agreement	—		—			—			(2,400		)	—			(2,400		)
Repayment of other borrowings	—		—			—			(517		)	—			(517		)
Payment for the acquisition of noncontrolling interest	—		—			(35,305		)	—			—			(35,305		)
Payment of dividend	—		—			(58,508		)	—			58,508			—
Proceeds from intercompany borrowings	—		—			2,644			—			(2,644		)	—
Payments on intercompany borrowing	—		(58,508		)	—			—			58,508			—
Exercise of stock options	—		—			1,935			—			—			1,935
Other, net	—		(473		)	(228		)	—			—			(701		)
Net cash provided (used) by financing activities	—		(58,981		)	(149,462		)	(2,917		)	114,372			(96,988		)
Net (decrease) increase in cash and cash equivalents	—		(1,103		)	16,171			1,663			—			16,731
Cash and cash equivalents at beginning of period	—		1,103			35,925			4,063			—			41,091
Cash and cash equivalents at end of period	$	—	$	—		$	52,096		$	5,726		$	—		$	57,822

Media General, Inc.

Condensed Consolidating Statement of Cash Flows

Year to date through September 30, 2015

(in thousands)

	Media General			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Cash flows from operating activities:
Net cash provided (used) by operating activities	$	(1,402	)	$	18,085		$	115,243		$	3,570		$	—		$	135,496
Cash flows from investing activities:
Capital expenditures	—			(14,845		)	(22,833		)	(2,905		)	—			(40,583		)
Release of restricted cash at qualified intermediary	—			—			119,903			—			—			119,903
Proceeds from sale the of PP&E	—			71			1,208			—			—			1,279
Proceeds from spectrum sale	—			—			620			2,500			—			3,120
Receipt of dividend	—			58,507			—			—			(58,507		)	—
Payments from intercompany borrowings	2,025			—			36,387			—			(38,412		)	—
Payment of capital contributions	(3,011		)	—			—			—			3,011			—
Other, net	—			—			—			(78		)	—			(78		)
Net cash provided (used) by investing activities	(986		)	43,733			135,285			(483		)	(93,908		)	83,641
Cash flows from financing activities:
Repayment of borrowings under Media General Credit Agreement	—			—			(160,000		)	—			—			(160,000		)
Repayment of 2021 Notes	—			(15,863		)	—			—			—			(15,863		)
Repayment of borrowings under Shield Media Credit Agreement	—			—			—			(1,800		)	—			(1,800		)
Repayment of other borrowings	—			—			—			(873		)	—			(873		)
Repurchase of shares	—			—			(33,724		)	—			—			(33,724		)
Payment for the acquisition of noncontrolling interest	—			(10,872		)	—			—			—			(10,872		)
Cash paid for debt modification	—			—			(3,425		)	—			—			(3,425		)
Exercise of stock options	—			—			1,848			—			—			1,848
Payment of dividend	—			—			(58,507		)	—			58,507			—
Payments on intercompany borrowing	—			(38,412		)	—			—			38,412			—
Receipt of capital contributions	—			3,011			—			—			(3,011		)	—
Other, net	—			(312		)	(164		)	(70		)	—			(546		)
Net cash (used) provided by financing activities	—			(62,448		)	(253,972		)	(2,743		)	93,908			(225,255		)
Net (decrease) increase in cash and cash equivalents	(2,388		)	(630		)	(3,444		)	344			—			(6,118		)
Cash and cash equivalents at beginning of period	2,388			9,658			27,371			4,503			—			43,920
Cash and cash equivalents at end of period	$	—		$	9,028		$	23,927		$	4,847		$	—		$	37,802