Segment Information

3 Months Ended

Mar. 31, 2020

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 60 local broadcast stations and their related digital operations. It is comprised of 18 ABC affiliates, 11 NBC affiliates, nine CBS affiliates and four FOX affiliates. We also have 13 CW affiliates - five on full power stations and eight on multicast; two MyNetworkTV affiliates; 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 Hulu, YouTubeTV and AT&T Now.

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 March 31,
(in thousands)	2020			2019

Segment operating revenues:
Local Media	$	321,804		$	203,387
National Media	107,602			87,317
Other	1,500			1,459
Total operating revenues	$	430,906		$	292,163
Segment profit (loss):
Local Media	$	55,977		$	34,173
National Media	11,785			4,941
Other	(170		)	(433		)
Shared services and corporate	(18,654		)	(16,158		)
Acquisition and related integration costs	(4,910		)	(3,480		)
Restructuring costs	—			(938		)
Depreciation and amortization of intangible assets	(27,915		)	(17,792		)
Gains (losses), net on disposal of property and equipment	(1,433		)	(173		)
Interest expense	(25,798		)	(8,916		)
Defined benefit pension plan expense	(1,026		)	(1,572		)
Miscellaneous, net	1,114			(800		)
Loss from operations before income taxes	$	(11,030	)	$	(11,148	)
Depreciation:
Local Media	$	11,490		$	7,591
National Media	1,620			1,004
Other	37			38
Shared services and corporate	381			342
Total depreciation	$	13,528		$	8,975
Amortization of intangible assets:
Local Media	$	9,921		$	3,958
National Media	4,128			4,521
Shared services and corporate	338			338
Total amortization of intangible assets	$	14,387		$	8,817
Additions to property and equipment:
Local Media	$	14,441		$	9,480
National Media	1,854			4,290
Other	5			31
Shared services and corporate	114			411
Total additions to property and equipment	$	16,414		$	14,212

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



	Three Months Ended March 31,
(in thousands)	2020		2019

Operating revenues:
Core advertising	$	240,994	$	173,361
Political	18,720		880
Retransmission and carriage	138,950		87,283
Other	32,242		30,639
Total operating revenues	$	430,906	$	292,163