Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

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.

Our Local Media segment includes our 61 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 12 CW affiliates - four on full power stations and eight on multicast; five independent stations and 10 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, satellite carriers and over-the-top virtual MVPDs.

Our Scripps Networks segment is comprised of nine national television networks that reach nearly every U.S. television home through free over-the-air broadcast, cable/satellite, connected TV and digital distribution. These operations earn revenue primarily through the sale of advertising.

Our respective business segment results reflect the impact of intercompany carriage agreements between our local broadcast television stations and our national networks. We also allocate a portion of certain corporate costs and expenses, including accounting, procurement, human resources, employee benefit and information technology to our business segments. These intercompany agreements and allocations are generally amounts agreed upon by management, which may differ from an arms-length amount.

The other segment caption aggregates our operating segments that are too small to report separately. Costs for centrally provided services and certain corporate costs that are not allocated to the business segments are included in shared services and corporate costs. These unallocated corporate costs would also include the costs associated with being a public company. Corporate assets are primarily cash and cash equivalents, restricted cash, property and equipment primarily used for corporate purposes and deferred income taxes.

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 amounts, 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)	2022		2021
Segment operating revenues:
Local Media	$	326,661	$	312,581
Scripps Networks	239,068		213,660
Other	4,151		18,121
Intersegment eliminations	(4,174)		(3,441)
Total operating revenues	$	565,706	$	540,921
Segment profit (loss):
Local Media	$	54,393	$	55,937
Scripps Networks	85,076		92,203
Other	(1,113)		3,281
Shared services and corporate	(23,211)		(18,921)
Acquisition and related integration costs	(1,642)		(28,645)
Restructuring costs	—		(7,050)
Depreciation and amortization of intangible assets	(39,745)		(39,507)
Gains (losses), net on disposal of property and equipment	(2,481)		(80)
Interest expense	(36,499)		(43,882)
Gain on extinguishment of debt	1,234		—
Defined benefit pension plan income	663		7
Gain on sale of Triton business	—		81,784
Losses on stock warrant	—		(67,244)
Miscellaneous, net	(407)		(4,851)
Income from continuing operations before income taxes	$	36,268	$	23,032
Depreciation:
Local Media	$	10,142	$	9,685
Scripps Networks	4,785		3,835
Other	44		249
Shared services and corporate	399		356
Total depreciation	$	15,370	$	14,125
Amortization of intangible assets:
Local Media	$	8,980	$	9,597
Scripps Networks	14,209		13,117
Other	481		2,147
Shared services and corporate	705		521
Total amortization of intangible assets	$	24,375	$	25,382
Additions to property and equipment:
Local Media	$	9,313	$	5,454
Scripps Networks	3,209		1,489
Other	9		430
Shared services and corporate	56		19
Total additions to property and equipment	$	12,587	$	7,392

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

	Three Months Ended  March 31,
(in thousands)	2022		2021
Operating revenues:
Core advertising	$	392,535	$	361,303
Political	5,946		1,311
Retransmission and carriage fees	155,820		156,497
Other	11,405		21,810
Total operating revenues	$	565,706	$	540,921