Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

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

Our television segment includes 15 ABC affiliates, five NBC affiliates, two FOX affiliates, two CBS affiliates and four non big-four affiliated stations. We also own five Azteca America Spanish-language affiliates. Our television stations reach approximately 18% of the nation’s television households. Television stations earn revenue primarily from the sale of advertising time to local, national and political advertisers and retransmission fees received from cable operators and satellite carriers.

Our radio segment consists of 34 radio stations in eight markets. We operate 28 FM stations and six AM stations. Our radio stations earn revenue primarily from the sale of advertising to local advertisers.

Our digital segment includes the digital operations of our local television and radio businesses. It also includes the operations of our national digital businesses of Newsy, an over-the-top ("OTT") video news service, Cracked, the multi-platform humor and satire brand, and Midroll, a podcast industry leader. Our digital operations earn revenue primarily through the sale of advertising and marketing services.

Syndication and other primarily includes the syndication of news features and comics and other features for the newspaper industry.

We allocate a portion of certain corporate costs and expenses, including information technology, certain employee benefits and 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.

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, 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   September 30,						Nine Months Ended   September 30,
(in thousands)	2016			2015			2016			2015
Segment operating revenues:
Television	$	197,283		$	157,437		$	568,932		$	439,049
Radio	19,301			20,421			52,087			39,834
Digital	15,754			10,861			43,287			25,698
Syndication and other	702			972			6,049			6,267
Total operating revenues	$	233,040		$	189,691		$	670,355		$	510,848
Segment profit (loss):
Television	$	58,305		$	31,707		$	153,290		$	98,357
Radio	2,528			4,073			8,574			8,981
Digital	(5,633		)	(3,639		)	(13,481		)	(13,210		)
Syndication and other	(832		)	(572		)	(984		)	(1,229		)
Shared services and corporate	(8,520		)	(8,658		)	(32,686		)	(33,701		)
Defined benefit pension plan expense	(3,605		)	(2,976		)	(10,504		)	(9,782		)
Acquisition and related integration costs	—			(4,206		)	(578		)	(36,953		)
Depreciation and amortization of intangibles	(14,892		)	(16,273		)	(44,089		)	(37,934		)
Impairment of goodwill and intangibles	—			(24,613		)	—			(24,613		)
Losses, net on disposal of property and equipment	(26		)	(200		)	(44		)	(579		)
Interest expense	(4,592		)	(4,246		)	(13,603		)	(10,523		)
Miscellaneous, net	(596		)	1,061			(1,245		)	12
Income (loss) from continuing operations before income taxes	$	22,137		$	(28,542	)	$	44,650		$	(61,174	)
Depreciation:
Television	$	7,120		$	9,765		$	22,517		$	22,389
Radio	653			554			1,733			1,103
Digital	40			132			148			394
Syndication and other	67			66			196			195
Shared services and corporate	527			575			1,397			1,802
Total depreciation	$	8,407		$	11,092		$	25,991		$	25,883
Amortization of intangibles:
Television	$	4,239		$	4,262		$	12,718		$	10,412
Radio	265			280			795			560
Digital	1,643			639			3,570			1,079
Shared services and corporate	338			—			1,015			—
Total amortization of intangibles	$	6,485		$	5,181		$	18,098		$	12,051
Additions to property and equipment:
Television	$	6,618		$	5,607		$	16,248		$	13,350
Radio	628			623			944			639
Digital	34			46			51			46
Syndication and other	74			7			115			76
Shared services and corporate	643			190			967			1,133
Total additions to property and equipment	$	7,997		$	6,473		$	18,325		$	15,244

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