Segment Information

6 Months Ended

Jun. 30, 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, 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)	2020		2019		2020		2019

Segment operating revenues:
Local Media	$	276,747	$	236,715	$	598,551	$	440,102
National Media	80,503		81,439		171,422		153,652
Other	1,633		2,274		3,133		3,733
Total operating revenues	$	358,883	$	320,428	$	773,106	$	597,487
Segment profit (loss):
Local Media	$	32,260	$	54,329	$	88,237	$	88,502
National Media	10,282		12,097		27,741		21,687
Other	104		(1,485)		(66)		(1,918)
Shared services and corporate	(12,923)		(13,119)		(31,577)		(29,277)
Acquisition and related integration costs	(221)		(2,788)		(5,131)		(6,268)
Restructuring costs	—		(957)		—		(1,895)
Depreciation and amortization of intangible assets	(26,645)		(19,532)		(53,990)		(36,538)

Gains (losses), net on disposal of property and equipment	(1,307)		(144)		(2,740)		(317)
Interest expense	(22,999)		(18,023)		(48,797)		(26,939)
Defined benefit pension plan expense	(1,026)		(1,564)		(2,052)		(3,136)
Miscellaneous, net	(1,552)		369		(438)		(431)
Income (loss) from continuing operations before income taxes	$	(24,027)	$	9,183	$	(28,813)	$	3,470
Depreciation:
Local Media	$	10,774	$	8,391	$	22,264	$	15,982
National Media	1,194		1,030		2,637		1,857
Other	41		39		78		77
Shared services and corporate	387		367		768		709
Total depreciation	$	12,396	$	9,827	$	25,747	$	18,625
Amortization of intangible assets:
Local Media	$	9,399	$	5,468	$	19,320	$	9,426
National Media	4,512		3,898		8,247		7,810
Shared services and corporate	338		339		676		677
Total amortization of intangible assets	$	14,249	$	9,705	$	28,243	$	17,913
Additions to property and equipment:
Local Media	$	11,776	$	12,411	$	26,217	$	21,891
National Media	232		4,279		2,041		8,562
Other	—		179		5		210
Shared services and corporate	102		195		216		606
Total additions to property and equipment	$	12,110	$	17,064	$	28,479	$	31,269

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)	2020		2019		2020		2019

Operating revenues:
Core advertising	$	182,089	$	206,535	$	417,910	$	376,452
Political	13,368		2,116		32,088		2,996
Retransmission and carriage	144,283		93,325		283,233		180,608
Other	19,143		18,452		39,875		37,431
Total operating revenues	$	358,883	$	320,428	$	773,106	$	597,487