Segment Information

12 Months Ended

Dec. 31, 2019

We determine our business segments based upon our management and internal reporting structure, 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 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 MyNetwork TV 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, telecommunication 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 media 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:


	For the years ended December 31,
(in thousands)	2019		2018		2017

Segment operating revenues:
Local Media	$	1,022,805	$	917,480	$	778,376
National Media	323,674		235,107		61,942
Other	4,920		4,775		5,455
Total operating revenues	$	1,351,399	$	1,157,362	$	845,773
Segment profit (loss):
Local Media	$	217,885	$	251,119	$	156,890
National Media	43,166		29,168		(6,656)
Other	(3,957)		(3,680)		(2,361)
Shared services and corporate	(57,409)		(53,123)		(50,506)
Acquisition and related integration costs	(26,304)		(4,124)		—
Restructuring costs	(3,370)		(8,911)		(4,422)
Depreciation and amortization of intangible assets	(84,344)		(60,711)		(52,906)
Impairment of goodwill and intangible assets	—		—		(35,732)
Gains (losses), net on disposal of property and equipment	1,692		(1,255)		(169)
Interest expense	(80,596)		(36,184)		(26,552)
Defined benefit pension plan expense	(6,953)		(19,752)		(14,112)
Miscellaneous, net	1,194		123		7,436
Income (loss) from continuing operations before income taxes	$	1,004	$	92,670	$	(29,090)
Depreciation:
Local Media	$	34,086	$	30,467	$	31,870
National Media	4,302		2,336		88
Other	148		150		208
Shared services and corporate	1,462		1,432		1,883
Total depreciation	$	39,998	$	34,385	$	34,049
Amortization of intangible assets:
Local Media	$	26,283	$	14,821	$	15,084
National Media	16,710		10,152		2,419
Shared services and corporate	1,353		1,353		1,354
Total amortization of intangible assets	$	44,346	$	26,326	$	18,857

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


	For the years ended December 31,
(in thousands)	2019		2018		2017

Operating revenues:
Core advertising	$	861,386	$	686,229	$	548,457
Political	23,263		139,600		8,651
Retransmission and carriage	390,043		304,402		259,712
Other	76,707		27,131		28,953
Total operating revenues	$	1,351,399	$	1,157,362	$	845,773

The following table presents additions to property and equipment by segment:


	For the years ended December 31,
(in thousands)	2019		2018		2017

Additions to property and equipment:
Local Media	$	46,855	$	37,773	$	16,946
National Media	11,963		9,004		289
Other	529		—		—
Shared services and corporate	1,878		723		367
Total additions to property and equipment	$	61,225	$	47,500	$	17,602

Total assets by segment for the years ended December 31 were as follows:


	As of December 31,
(in thousands)	2019		2018		2017

Assets:
Local Media	$	2,694,667	$	1,261,526	$	1,273,735
National Media	680,764		655,718		459,694
Other	3,503		865		2,128
Shared services and corporate	81,657		129,969		189,433
Total assets of continuing operations	3,460,591		2,048,078		1,924,990
Discontinued operations	101,266		82,269		204,789
Total assets	$	3,561,857	$	2,130,347	$	2,129,779