Segment Information

3 Months Ended

Mar. 31, 2024

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 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, telecommunications 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:

	Three Months Ended  March 31,
(in thousands)	2024		2023
Segment operating revenues:
Local Media	$	352,836	$	311,923
Scripps Networks	209,278		216,473
Other	4,113		3,756
Intersegment eliminations	(4,763)		(4,374)
Total operating revenues	$	561,464	$	527,778
Segment profit (loss):
Local Media	$	65,556	$	45,843
Scripps Networks	49,654		51,526
Other	(6,397)		(1,532)
Shared services and corporate	(21,575)		(23,405)
Restructuring costs	(5,015)		(16,511)
Depreciation and amortization of intangible assets	(38,688)		(38,543)
Gains (losses), net on disposal of property and equipment	(147)		(896)
Interest expense	(54,917)		(48,838)
Defined benefit pension plan income	177		134
Miscellaneous, net	16,821		(503)
Income (loss) from operations before income taxes	$	5,469	$	(32,725)
Depreciation:
Local Media	$	10,033	$	9,853
Scripps Networks	4,825		4,736
Other	60		45
Shared services and corporate	202		419
Total depreciation	$	15,120	$	15,053
Amortization of intangible assets:
Local Media	$	8,945	$	8,980
Scripps Networks	12,977		13,009
Other	451		449
Shared services and corporate	1,195		1,052
Total amortization of intangible assets	$	23,568	$	23,490
Additions to property and equipment:
Local Media	$	15,461	$	7,267
Scripps Networks	2,316		194
Other	118		—
Shared services and corporate	2		835
Total additions to property and equipment	$	17,897	$	8,296

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

	Three Months Ended  March 31,
(in thousands)	2024		2023
Operating revenues:
Core advertising	$	333,790	$	348,574
Political	15,968		3,525
Distribution	202,560		166,559
Other	9,146		9,120
Total operating revenues	$	561,464	$	527,778