Segment Information

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019

Segment operating revenues:
Local Media	$	403,769	$	252,392	$	1,002,320	$	692,494
National Media	89,413		78,285		260,835		231,937
Other	80		180		3,213		3,913
Total operating revenues	$	493,262	$	330,857	$	1,266,368	$	928,344
Segment profit (loss):
Local Media	$	144,561	$	49,678	$	232,798	$	138,180
National Media	12,138		9,727		39,879		31,414
Other	(1,566)		(1,270)		(1,632)		(3,188)
Shared services and corporate	(12,128)		(14,167)		(43,705)		(43,444)
Acquisition and related integration costs	(10,928)		(16,736)		(16,059)		(23,004)
Restructuring costs	—		(27)		—		(1,922)
Depreciation and amortization of intangible assets	(26,856)		(21,661)		(80,846)		(58,199)

Gains (losses), net on disposal of property and equipment	2,012		11		(728)		(306)
Interest expense	(21,387)		(26,537)		(70,184)		(53,476)
Defined benefit pension plan expense	(1,261)		(2,071)		(3,313)		(5,207)
Miscellaneous, net	1,488		2,042		1,050		1,611
Income (loss) from continuing operations before income taxes	$	86,073	$	(21,011)	$	57,260	$	(17,541)
Depreciation:
Local Media	$	10,455	$	8,197	$	32,719	$	24,179
National Media	1,691		1,233		4,328		3,090
Other	76		43		154		120
Shared services and corporate	346		360		1,114		1,069
Total depreciation	$	12,568	$	9,833	$	38,315	$	28,458
Amortization of intangible assets:
Local Media	$	9,133	$	7,438	$	28,453	$	16,864
National Media	4,816		4,052		13,063		11,862
Shared services and corporate	339		338		1,015		1,015
Total amortization of intangible assets	$	14,288	$	11,828	$	42,531	$	29,741
Additions to property and equipment:
Local Media	$	9,134	$	8,460	$	35,351	$	30,351
National Media	1,375		2,150		3,416		10,712
Other	51		308		56		518
Shared services and corporate	78		374		294		980
Total additions to property and equipment	$	10,638	$	11,292	$	39,117	$	42,561

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)	2020		2019		2020		2019

Operating revenues:
Core advertising	$	221,713	$	210,621	$	638,275	$	587,073
Political	98,313		5,037		131,749		8,033
Retransmission and carriage	153,888		97,128		437,121		277,736
Other	19,348		18,071		59,223		55,502
Total operating revenues	$	493,262	$	330,857	$	1,266,368	$	928,344