Segment Information

9 Months Ended

Sep. 30, 2019

We determine our business segments based upon our management and internal reporting structures, as well as the basis on which 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, nine CBS affiliates, four FOX affiliates, two MyNetworkTV affiliates, five 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 September 30,						Nine Months Ended September 30,
(in thousands)	2019			2018			2019			2018

Segment operating revenues:
Local Media	$	252,392		$	230,734		$	692,494		$	636,041
National Media	97,205			71,761			283,028			200,708
Other	180			231			3,913			3,563
Total operating revenues	$	349,777		$	302,726		$	979,435		$	840,312
Segment profit (loss):
Local Media	$	49,678		$	67,416		$	138,180		$	152,403
National Media	5,250			2,838			16,764			6,910
Other	(1,270		)	(1,267		)	(3,188		)	(3,161		)
Shared services and corporate	(14,167		)	(12,370		)	(43,444		)	(40,104		)
Acquisition and related integration costs	(16,736		)	(332		)	(23,004		)	(332		)
Restructuring costs	(27		)	(863		)	(1,922		)	(7,000		)
Depreciation and amortization of intangible assets	(22,241		)	(15,598		)	(60,270		)	(46,400		)
Gains (losses), net on disposal of property and equipment	11			501			(306		)	(150		)
Interest expense	(26,537		)	(9,003		)	(53,476		)	(27,041		)
Defined benefit pension plan expense	(2,071		)	(3,529		)	(5,207		)	(6,306		)
Miscellaneous, net	2,042			(546		)	1,611			(535		)
Income (loss) from continuing operations before income taxes	$	(26,068	)	$	27,247		$	(34,262	)	$	28,284
Depreciation:
Local Media	$	8,197		$	8,004		$	24,179		$	22,891
National Media	1,420			273			3,622			503
Other	43			37			120			113
Shared services and corporate	360			313			1,069			1,109
Total depreciation	$	10,020		$	8,627		$	28,990		$	24,616
Amortization of intangible assets:
Local Media	$	7,438		$	3,706		$	16,864		$	11,116
National Media	4,445			2,927			13,401			9,653
Shared services and corporate	338			338			1,015			1,015
Total amortization of intangible assets	$	12,221		$	6,971		$	31,280		$	21,784
Additions to property and equipment:
Local Media	$	8,460		$	8,156		$	30,351		$	28,269
National Media	2,184			5,625			10,820			11,350
Other	308			—			518			—
Shared services and corporate	374			—			980			73
Total additions to property and equipment	$	11,326		$	13,781		$	42,669		$	39,692

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



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018

Operating revenues:
Core advertising	$	214,981	$	165,587	$	598,828	$	511,434
Political	5,037		40,018		8,033		57,484
Retransmission and carriage	97,128		79,673		277,736		225,391
Other	32,631		17,448		94,838		46,003
Total operating revenues	$	349,777	$	302,726	$	979,435	$	840,312