Segment Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Information

We determine our business segments based upon our management and internal reporting structure. Our reportable segments are strategic businesses that offer different products and services.

Our television segment includes 11 ABC affiliates, three NBC affiliates, and two independent stations that operate as duopolies with our Kansas City NBC affiliate and our Detroit ABC affiliate. We also own five Azteca America affiliates. Our television stations reach approximately 14% of the nation’s households. Television stations earn revenue primarily from the sale of advertising time to local and national advertisers and retransmission fees received from cable operators and satellite carriers.

Our newspaper segment includes daily and community newspapers in 13 markets across the United States. Newspapers earn revenue primarily from the sale of advertising space to local and national advertisers and newspaper subscription fees.

Syndication and other primarily includes certain digital operations outside of our television and newspaper markets and syndication of news features and comics and other features for the newspaper industry. Newsy, a digital video news service, is also included in syndication and other.

We allocate a portion of certain corporate costs and expenses, including information technology, certain employee benefits, digital operation services and other shared services, to our business segments. The allocations are generally amounts agreed upon by management, which may differ from an arms-length amount. Corporate assets are primarily cash and cash equivalents, restricted cash, property and equipment primarily used for corporate purposes, and deferred income taxes. A portion of our digital operations, which is not allocated to our television and newspaper segments, is included in shared services and corporate.

Our chief operating decision maker evaluates the operating performance of our business segments and makes decisions about the allocation of resources to our business segments using a measure called segment profit. Segment profit excludes interest, defined benefit pension plan expense (other than current service cost), income taxes, depreciation and amortization, impairment charges, divested operating units, restructuring activities, investment results and certain other items that are included in net income (loss) determined in accordance with accounting principles generally accepted in the United States of America.

Information regarding our business segments is as follows:

	Three Months Ended   June 30,						Six Months Ended   June 30,
(in thousands)	2014			2013			2014			2013
Segment operating revenues:
Television	$	115,794		$	111,393		$	217,936		$	208,259
Newspapers	92,250			93,452			190,740			192,940
Syndication and other	3,902			3,008			7,064			5,307
Total operating revenues	$	211,946		$	207,853		$	415,740		$	406,506
Segment profit (loss):
Television	$	27,806		$	30,532		$	48,778		$	47,024
Newspapers	5,443			5,882			13,992			11,819
Syndication and other	(725		)	(446		)	(513		)	32
Shared services and corporate	(14,351		)	(12,056		)	(28,709		)	(23,903		)
Defined benefit pension plan expense	(5,477		)	(2,569		)	(6,855		)	(4,538		)
Acquisition and related integration costs	(4,097		)	—			(4,359		)	—
Separation and restructuring costs	—			(1,425		)	—			(2,401		)
Depreciation and amortization of intangibles	(11,595		)	(11,774		)	(23,324		)	(23,588		)
(Losses) gains, net on disposal of property, plant and equipment	(22		)	42			(90		)	37
Interest expense	(2,043		)	(2,656		)	(4,297		)	(5,269		)
Miscellaneous, net	(400		)	(1,634		)	(845		)	(2,938		)
(Loss) income from operations before income taxes	$	(5,461	)	$	3,896		$	(6,222	)	$	(3,725	)
Depreciation:
Television	$	5,028		$	5,616		$	10,139		$	11,207
Newspapers	3,925			4,004			7,912			8,117
Syndication and other	102			19			200			38
Shared services and corporate	643			396			1,255			775
Total depreciation	$	9,698		$	10,035		$	19,506		$	20,137
Amortization of intangibles:
Television	$	1,600		$	1,602		$	3,199		$	3,179
Newspapers	93			137			211			272
Syndication and other	204			—			408			—
Total amortization of intangibles	$	1,897		$	1,739		$	3,818		$	3,451
Additions to property, plant and equipment:
Television	$	4,708		$	3,269		$	6,440		$	5,156
Newspapers	694			572			913			1,461
Syndication and other	102			—			130			—
Shared services and corporate	121			3,349			726			5,552
Total additions to property, plant and equipment	$	5,625		$	7,190		$	8,209		$	12,169

No single customer provides more than 10% of our revenue.