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 fifteen ABC affiliates, five NBC affiliates, two FOX affiliates and two CBS affiliates. We also have three MyTV affiliates, one CW affiliate, one independent station and three 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, telecommunications companies and satellite carriers.

Our radio segment consists of thirty-four radio stations in eight markets. We operate twenty-eight 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.

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 June 30,						Six Months Ended June 30,
(in thousands)	2017			2016			2017			2016

Segment operating revenues:
Television	$	193,304		$	191,745		$	373,102		$	371,649
Radio	17,246			18,183			31,242			32,786
Digital	19,349			15,207			34,706			27,533
Other	1,921			2,682			3,771			5,347
Total operating revenues	$	231,820		$	227,817		$	442,821		$	437,315
Segment profit (loss):
Television	$	49,785		$	53,298		$	84,500		$	94,985
Radio	2,909			3,903			4,517			6,046
Digital	(4,199		)	(4,715		)	(10,376		)	(7,848		)
Other	(1,763		)	(1,045		)	(1,445		)	(152		)
Shared services and corporate	(10,966		)	(9,874		)	(25,130		)	(24,166		)
Acquisition and related integration costs	—			—			—			(578		)
Depreciation and amortization of intangibles	(14,649		)	(14,786		)	(29,373		)	(29,197		)
(Losses) gains, net on disposal of property and equipment	(224		)	(22		)	(311		)	(18		)
Interest expense	(8,248		)	(4,432		)	(12,443		)	(9,011		)
Defined benefit pension plan expense	(3,467		)	(3,449		)	(6,934		)	(6,899		)
Miscellaneous, net	5,103			(458		)	4,224			(649		)
Income from operations before income taxes	$	14,281		$	18,420		$	7,229		$	22,513
Depreciation:
Television	$	8,002		$	7,932		$	15,828		$	15,397
Radio	603			543			1,201			1,080
Digital	15			54			31			108
Other	59			65			126			129
Shared services and corporate	474			334			956			870
Total depreciation	$	9,153		$	8,928		$	18,142		$	17,584
Amortization of intangibles:
Television	$	3,632		$	4,240		$	7,505		$	8,479
Radio	265			265			530			530
Digital	1,260			1,014			2,519			1,927
Shared services and corporate	339			339			677			677
Total amortization of intangibles	$	5,496		$	5,858		$	11,231		$	11,613
Additions to property and equipment:
Television	$	4,855		$	6,519		$	8,802		$	9,630
Radio	367			83			554			316
Digital	186			13			197			17
Other	—			26			—			41
Shared services and corporate	22			266			121			324
Total additions to property and equipment	$	5,430		$	6,907		$	9,674		$	10,328