Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

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.

Our Local Media segment includes more than 60 local television 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 seven CW affiliates - four on full power stations and three on multicast; seven 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, telecommunication companies, satellite carriers and over-the-top virtual MVPDs.

Our Scripps Networks segment includes national news outlets Scripps News and Court TV as well as popular entertainment brands ION, Bounce, Defy TV, Grit, ION Mystery and Laff. The Scripps Networks 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, 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, 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:

	For the years ended December 31,
(in thousands)	2023		2022		2021
Segment operating revenues:
Local Media	$	1,398,230	$	1,494,357	$	1,319,468
Scripps Networks	893,234		961,242		951,883
Other	19,397		14,628		26,924
Intersegment eliminations	(17,949)		(17,012)		(14,743)
Total operating revenues	$	2,292,912	$	2,453,215	$	2,283,532
Segment profit (loss):
Local Media	$	287,439	$	386,369	$	268,140
Scripps Networks	225,785		310,336		389,278
Other	(26,451)		(18,140)		359
Shared services and corporate	(91,954)		(82,280)		(75,576)
Acquisition and related integration costs	—		(1,642)		(40,373)
Restructuring costs	(38,612)		—		(9,436)
Depreciation and amortization of intangible assets	(155,105)		(160,433)		(161,922)
Impairment of goodwill	(952,000)		—		—
Gains (losses), net on disposal of property and equipment	(2,344)		(5,866)		30,275
Interest expense	(213,512)		(161,130)		(165,164)
Gain (loss) on extinguishment of debt	—		8,589		(15,347)
Defined benefit pension plan income (expense)	650		2,613		(343)
Gain on sale of Triton business	—		—		81,784
Losses on stock warrant	—		—		(99,118)
Miscellaneous, net	(1,407)		(1,953)		(15,469)
Income (loss) from continuing operations before income taxes	$	(967,511)	$	276,463	$	187,088
Depreciation:
Local Media	$	39,642	$	40,479	$	39,368
Scripps Networks	19,600		19,360		17,109
Other	184		189		382
Shared services and corporate	1,299		1,915		1,498
Total depreciation	$	60,725	$	61,943	$	58,357
Amortization of intangible assets:
Local Media	$	36,322	$	35,461	$	40,315
Scripps Networks	52,036		56,836		58,599
Other	1,795		1,870		2,147
Shared services and corporate	4,227		4,323		2,504
Total amortization of intangible assets	$	94,380	$	98,490	$	103,565

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

	For the years ended December 31,
(in thousands)	2023		2022		2021
Operating revenues:
Core advertising	$	1,444,539	$	1,549,277	$	1,592,121
Political	33,460		208,112		22,693
Distribution	779,217		660,317		620,454
Other	35,696		35,509		48,264
Total operating revenues	$	2,292,912	$	2,453,215	$	2,283,532

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

	For the years ended December 31,
(in thousands)	2023		2022		2021
Additions to property and equipment:
Local Media	$	55,244	$	58,350	$	35,963
Scripps Networks	5,654		13,444		23,871
Other	75		54		430
Shared services and corporate	1,530		374		2,114
Total additions to property and equipment	$	62,503	$	72,222	$	62,378

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

	As of December 31,
(in thousands)	2023		2022
Assets:
Local Media	$	2,393,660	$	2,391,703
Scripps Networks	2,878,936		3,915,374
Other	58,460		52,571
Shared services and corporate	79,064		71,357
Total assets	$	5,410,120	$	6,431,005