Segment Information

3 Months Ended

Mar. 31, 2017

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 and two CBS affiliates. We also have two MyTV affiliates, one CW affiliate, one independent station and four Azteca America Spanish-language affiliates. Our television stations reach approximately 18% of the nation’s television households based on audience reach. 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 Midroll, a podcast industry leader, Newsy, an over-the-top ("OTT") video news service and Cracked, a multi-platform humor and satire brand. Our digital operations earn revenue primarily through the sale of advertising, marketing services and agency commissions.

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   March 31,
(in thousands)	2017			2016
Segment operating revenues:
Television	$	179,798		$	179,904
Radio	13,996			14,603
Digital	15,357			12,326
Syndication and other	1,850			2,665
Total operating revenues	$	211,001		$	209,498
Segment profit (loss):
Television	$	34,715		$	41,687
Radio	1,608			2,143
Digital	(6,177		)	(3,133		)
Syndication and other	318			893
Shared services and corporate	(14,164		)	(14,292		)
Acquisition and related integration costs	—			(578		)
Depreciation and amortization of intangibles	(14,724		)	(14,411		)
(Losses) gains, net on disposal of property and equipment	(87		)	4
Interest expense	(4,195		)	(4,579		)
Defined benefit pension plan expense	(3,467		)	(3,450		)
Miscellaneous, net	(879		)	(191		)
(Loss) income from operations before income taxes	$	(7,052	)	$	4,093
Depreciation:
Television	$	7,826		$	7,465
Radio	598			537
Digital	16			54
Syndication and other	67			64
Shared services and corporate	482			536
Total depreciation	$	8,989		$	8,656
Amortization of intangibles:
Television	$	3,873		$	4,239
Radio	265			265
Digital	1,259			913
Shared services and corporate	338			338
Total amortization of intangibles	$	5,735		$	5,755
Additions to property and equipment:
Television	$	3,947		$	3,111
Radio	187			233
Digital	11			4
Syndication and other	—			15
Shared services and corporate	99			58
Total additions to property and equipment	$	4,244		$	3,421

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