Segment Information

6 Months Ended

Jun. 30, 2019

We determine our business segments based upon our management and internal reporting structures, as well as the basis that our chief operating decision maker makes resource allocation decisions. We report our financial performance based on the following segments: Local Media, National Media, Other.

Our Local Media segment includes our local broadcast stations and their related digital operations. It is comprised of eighteen ABC affiliates, eleven NBC affiliates, seven CBS affiliates, two FOX affiliates, two MyNetworkTV affiliates, one CW affiliate, two independent stations and nine additional low power stations. Our Local Media segment earns revenue primarily from the sale of advertising to local, national and political advertisers and retransmission fees received from cable operators, telecommunications companies and satellite carriers. We also receive retransmission fees from over-the-top virtual MVPDs such as YouTubeTV, DirectTV Now and Sony Vue.

Our National Media segment includes our collection of national brands. Our national brands include Katz, Stitcher and its advertising network Midroll Media (Midroll), Newsy, Triton and other national brands. These operations earn revenue primarily through the sale of advertising.

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.

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)	2019			2018			2019			2018

Segment operating revenues:
Local Media	$	236,715		$	213,248		$	440,102		$	405,307
National Media	98,506			68,226			185,823			128,947
Other	2,274			1,921			3,733			3,332
Total operating revenues	$	337,495		$	283,395		$	629,658		$	537,586
Segment profit (loss):
Local Media	$	54,329		$	53,368		$	88,502		$	84,987
National Media	6,573			2,037			11,514			4,072
Other	(1,485		)	(1,643		)	(1,918		)	(1,894		)
Shared services and corporate	(13,119		)	(13,647		)	(29,277		)	(27,734		)
Acquisition and related integration costs	(2,788		)	—			(6,268		)	—
Restructuring costs	(957		)	(2,330		)	(1,895		)	(6,137		)
Depreciation and amortization of intangible assets	(20,237		)	(15,382		)	(38,029		)	(30,802		)
Gains (losses), net on disposal of property and equipment	(144		)	66			(317		)	(651		)
Interest expense	(18,023		)	(9,279		)	(26,939		)	(18,038		)
Defined benefit pension plan expense	(1,564		)	(1,389		)	(3,136		)	(2,777		)
Miscellaneous, net	369			(156		)	(431		)	11
Income (loss) from continuing operations before income taxes	$	2,954		$	11,645		$	(8,194	)	$	1,037
Depreciation:
Local Media	$	8,391		$	7,331		$	15,982		$	14,887
National Media	1,198			134			2,202			230
Other	39			38			77			76
Shared services and corporate	367			387			709			796
Total depreciation	$	9,995		$	7,890		$	18,970		$	15,989
Amortization of intangible assets:
Local Media	$	5,468		$	3,705		$	9,426		$	7,410
National Media	4,435			3,448			8,956			6,726
Shared services and corporate	339			339			677			677
Total amortization of intangible assets	$	10,242		$	7,492		$	19,059		$	14,813
Additions to property and equipment:
Local Media	$	12,411		$	10,613		$	21,891		$	20,113
National Media	4,346			4,051			8,636			5,725
Other	179			—			210			—
Shared services and corporate	195			13			606			73
Total additions to property and equipment	$	17,131		$	14,677		$	31,343		$	25,911

A disaggregation of the principal activities from which we generate revenue is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2019		2018		2019		2018

Operating revenues:
Core advertising	$	210,486	$	179,294	$	383,847	$	345,847
Political	2,116		14,882		2,996		17,466
Retransmission and carriage	93,325		74,658		180,608		145,718
Other	31,568		14,561		62,207		28,555
Total operating revenues	$	337,495	$	283,395	$	629,658	$	537,586