Restructuring Costs and Other Transactions

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring Costs and Other Transactions

Restructuring and Reorganization

In January 2023, we announced a strategic restructuring and reorganization of the Company to further leverage our strong position in the U.S. television ecosystem and propel our growth across new distribution platforms and emerging media marketplaces. The strategic reorganization, which was substantially completed by the end of the 2024 second quarter, created a leaner and more agile operating structure through the centralization of certain services and the consolidation of layers of management across our operating businesses and corporate office.

On September 27, 2024, we announced we will significantly reduce Scripps News' national network programming after November 15, 2024. Scripps News will no longer broadcast over the air, although it will remain on streaming and digital platforms with weekday live coverage from the field. We expect these restructuring activities will result in the elimination of more than 200 jobs during the remainder of 2024.

Restructuring costs in the third quarter of 2024 and 2023 totaled $12.7 million and $4.7 million, respectively. Year-to-date restructuring costs totaled $18.7 million and $29.2 million in 2024 and 2023, respectively. In the third quarter of 2024, we incurred $10.9 million in severance charges related to the significant reduction of Scripps News' national news programming. Remaining restructuring costs in 2024 include severance charges and outside consulting fees associated with the strategic reorganization efforts. Year-to-date 2023 costs included a $13.6 million first quarter charge related to the write-down of certain programming assets in connection with the shutdown of the TrueReal network. Additionally, year-to-date 2023 restructuring costs also included employee severance related charges of $8.9 million, operating lease impairment charges of $1.1 million and other restructuring charges primarily attributed to strategic reorganization consulting fees.


Nine Months Ended September 30, 2024 and 2023 (in thousands)	Severance and Employee Benefits		Other Restructuring Charges		Total

Liability as of December 31, 2023	$	6,735	$	1,430	$	8,165
Net charges	17,553		1,100		18,653
Payments	(11,554)		(1,698)		(13,252)
Non-cash (a)	—		—		—
Liability as of September 30, 2024	$	12,734	$	832	$	13,566


Liability as of December 31, 2022	$	—	$	—	$	—
Net charges	8,887		20,321		29,208
Payments	(5,001)		(4,441)		(9,442)
Non-cash (a)	(593)		(14,685)		(15,278)
Liability as of September 30, 2023	$	3,293	$	1,195	$	4,488

(a) Represents share-based compensation costs and asset write-downs included in restructuring charges.

Other Transactions

On February 9, 2024, following the completed sale of Broadcast Music, Inc. ("BMI") to New Mountain Capital, we received $18.1 million in pre-tax cash proceeds for our equity ownership in BMI. We did not have any carrying value associated with our BMI investment. This gain was included in Miscellaneous, net for the nine months ended September 30, 2024.

In the third quarter of 2024, we signed letters of intent for the sale of our West Palm Beach station's building and San Diego tower site. We expect to receive $60 million of total cash consideration from these proposed sales. The San Diego tower site transaction is expected to close in the fourth quarter of 2024 and the West Palm Beach transaction is expected to close in the first quarter of 2025. As a result of these transactions, we also expect to enter into leasing agreements related to these assets.