Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 23, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | MISSION BROADCASTING INC | ||
Entity Central Index Key | 1,142,412 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,000 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 9,524 | $ 6,474 |
Accounts receivable, net of allowance for doubtful accounts of $128 and $92, respectively | 14,717 | 12,332 |
Due from Nexstar Broadcasting, Inc. | 92,920 | 80,815 |
Prepaid expenses and other current assets | 2,070 | 1,337 |
Total current assets | 119,231 | 100,958 |
Property and equipment, net | 18,454 | 19,564 |
Goodwill | 33,187 | 32,489 |
FCC licenses | 43,102 | 41,563 |
Other intangible assets, net | 15,841 | 16,470 |
Deferred tax assets, net | 1,508 | 5,959 |
Other noncurrent assets, net | 1,137 | 5,185 |
Total assets | 232,460 | 222,188 |
Current liabilities: | ||
Current portion of debt | 2,314 | 1,160 |
Current portion of broadcast rights payable | 986 | 1,077 |
Accounts payable | 1,090 | 524 |
Accrued expenses | 11,622 | 7,261 |
Other current liabilities | 702 | 673 |
Total current liabilities | 16,714 | 10,695 |
Debt | 223,428 | 222,605 |
Other noncurrent liabilities | 7,626 | 9,832 |
Total liabilities | 247,768 | 243,132 |
Commitments and contingencies (Note 11) | ||
Shareholders' deficit: | ||
Common stock - $1 par value, 1,000 shares authorized, issued and outstanding as of each of December 31, 2017 and December 31, 2016 | 1 | 1 |
Subscription receivable | (1) | (1) |
Accumulated deficit | (15,308) | (20,944) |
Total shareholders' deficit | (15,308) | (20,944) |
Total liabilities and shareholders' deficit | $ 232,460 | $ 222,188 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 128 | $ 92 |
Shareholders' deficit: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, shares issued (in shares) | 1,000 | 1,000 |
Common stock, shares outstanding (in shares) | 1,000 | 1,000 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net broadcast revenue | $ 70,592 | $ 61,402 | $ 51,132 |
Revenue from Nexstar Broadcasting, Inc. | 36,546 | 42,791 | 37,000 |
Net revenue | 107,138 | 104,193 | 88,132 |
Operating expenses: | |||
Direct operating expenses, excluding depreciation and amortization | 35,802 | 30,201 | 24,601 |
Selling, general, and administrative expenses, excluding depreciation and amortization | 4,153 | 3,549 | 3,536 |
Fees incurred pursuant to local service agreements with Nexstar Broadcasting, Inc. | 35,500 | 18,000 | 9,780 |
Amortization of broadcast rights | 5,645 | 5,567 | 5,766 |
Amortization of intangible assets | 2,392 | 2,422 | 2,418 |
Depreciation | 2,342 | 2,400 | 2,435 |
Total operating expenses | 85,834 | 62,139 | 48,536 |
Income from operations | 21,304 | 42,054 | 39,596 |
Interest expense | (10,135) | (10,251) | (9,325) |
Loss on extinguishment of debt | (2,133) | ||
Income before income taxes | 9,036 | 31,803 | 30,271 |
Income tax expense | (3,400) | (12,337) | (12,172) |
Net income | $ 5,636 | $ 19,466 | $ 18,099 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT - USD ($) $ in Thousands | Total | Common Stock [Member] | Subscription Receivable [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2014 | $ (58,509) | $ 1 | $ (1) | $ (58,509) |
Balance (in shares) at Dec. 31, 2014 | 1,000 | |||
Net income | 18,099 | 18,099 | ||
Balance at Dec. 31, 2015 | (40,410) | $ 1 | (1) | (40,410) |
Balance (in shares) at Dec. 31, 2015 | 1,000 | |||
Net income | 19,466 | 19,466 | ||
Balance at Dec. 31, 2016 | $ (20,944) | $ 1 | (1) | (20,944) |
Balance (in shares) at Dec. 31, 2016 | 1,000 | 1,000 | ||
Net income | $ 5,636 | 5,636 | ||
Balance at Dec. 31, 2017 | $ (15,308) | $ 1 | $ (1) | $ (15,308) |
Balance (in shares) at Dec. 31, 2017 | 1,000 | 1,000 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 5,636 | $ 19,466 | $ 18,099 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income taxes | 4,451 | 11,032 | 10,992 |
Provision for bad debt | 86 | 64 | |
Depreciation of property and equipment | 2,342 | 2,400 | 2,435 |
Amortization of intangible assets | 2,392 | 2,422 | 2,418 |
Amortization of debt financing costs and debt discount | 750 | 566 | 550 |
Amortization of broadcast rights, excluding barter | 1,619 | 1,596 | 1,755 |
Payments for broadcast rights | (1,632) | (1,685) | (1,762) |
Loss on asset disposal | 75 | 168 | 98 |
Deferred gain recognition | (198) | (198) | (199) |
Loss on extinguishment of debt | 2,133 | ||
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (2,469) | (2,962) | (2,539) |
Prepaid expenses and other current assets | (818) | 6 | 120 |
Other noncurrent assets | (7) | (11) | (29) |
Accounts payable, accrued expenses and other current liabilities | 4,255 | 1,804 | 1,199 |
Other noncurrent liabilities | (1,819) | (395) | (156) |
Due from Nexstar Broadcasting, Inc. | (12,100) | (28,837) | (22,111) |
Net cash provided by operating activities | 4,696 | 5,372 | 10,934 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (700) | (241) | (258) |
Payment for acquisition | (800) | 150 | |
Proceeds from disposals of property and equipment | 100 | ||
Net cash used in investing activities | (1,400) | (241) | (108) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 230,609 | ||
Repayments of long-term debt | (227,051) | (2,335) | (7,337) |
Payments for debt financing costs | (3,804) | (683) | (8) |
Net cash used in financing activities | (246) | (3,018) | (7,345) |
Net increase in cash and cash equivalents | 3,050 | 2,113 | 3,481 |
Cash and cash equivalents at beginning of period | 6,474 | 4,361 | 880 |
Cash and cash equivalents at end of period | 9,524 | 6,474 | 4,361 |
Supplemental information: | |||
Interest paid | 9,639 | 8,685 | 8,775 |
Income taxes paid, net of refunds | $ 1,101 | $ 1,307 | $ 1,000 |
Organization and Business Opera
Organization and Business Operations | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Business Operations | 1. Organization and Business Operations As of December 31, 2017, Mission Broadcasting, Inc. (“Mission” or the “Company”) owned and operated 19 full power television stations, affiliated with the NBC, ABC, CBS, FOX and The CW television networks, in 18 markets located in the states of Arkansas, Colorado, Illinois, Indiana, Louisiana, Missouri, Montana, New York, Pennsylvania, Texas and Vermont. The Company operates in one reportable television broadcasting segment. Through local service agreements, Nexstar Broadcasting, Inc., a subsidiary of Nexstar Media Group, Inc. (collectively “Nexstar”) provides sales and operating services to all of the Mission television stations (see Notes 2 and 4). The Company is highly leveraged, which makes it vulnerable to changes in general economic conditions. The Company’s ability to repay or refinance its debt will depend on, among other things, financial, business, market, competitive and other conditions, many of which are beyond its control, as well as Nexstar maintaining its pledge to continue the local service agreements with the Company’s stations. Management believes that with Nexstar’s pledge to continue the local service agreements as described in a letter of support dated March 23, 2018, the Company’s available cash, anticipated cash flow from operations and available borrowings under its senior secured credit facility should be sufficient to fund working capital, capital expenditure requirements, interest payments and scheduled debt principal payments for at least the next twelve months from December 31, 2017, enabling Mission to continue to operate as a going concern. Nexstar’s senior secured credit agreement contains a covenant which requires Nexstar to comply with a maximum consolidated first lien net leverage ratio of 4.50 to 1.00. The financial covenant, which is formally calculated on a quarterly basis, is based on the combined results of Nexstar and its variable interest entities, including Mission. Mission’s credit agreement does not contain financial covenant ratio requirements, but does provide for default in the event Nexstar does not comply with all covenants contained in its credit agreement. As of December 31, 2017, Nexstar has informed Mission that it was in compliance with all covenants contained in its credit agreement and the indentures governing its senior unsecured notes. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Local Service Agreements and Purchase Options The following table summarizes the various local service agreements Mission’s stations had in effect as of December 31, 2017 with Nexstar: Service Agreements Stations TBA Only (1) WFXP, KHMT and KFQX SSA & JSA (2) KJTL, KLRT, KASN, KOLR, KCIT, KAMC, KRBC, KSAN, WUTR, WAWV, WYOU, KODE, WTVO, KTVE, WTVW and WVNY (1) Mission has a time brokerage agreement (“TBA”) for each of these stations which allows Nexstar to program most of each station’s broadcast time, sell each station’s advertising time and retain the advertising revenue generated in exchange for monthly payments to Mission, based on the station’s monthly operating expenses. (2) Mission has both a shared services agreement (“SSA”) and a joint sales agreement (“JSA”) for each of these stations. Each SSA allows the Nexstar station in the market to provide services including news production, technical maintenance and security, in exchange for Nexstar’s right to receive certain payments from Mission as described in the SSAs. Each JSA permits Nexstar to sell certain of the station’s advertising time and retain a percentage of the related revenue, as described in the JSAs. Under these agreements, Mission is responsible for certain operating expenses of its stations and therefore may have unlimited exposure to any potential operating losses. Mission will continue to operate its stations under the SSAs and JSAs or TBAs until the termination of such agreements. The local service agreements generally have terms of eight to ten years. Nexstar indemnifies Mission from Nexstar’s activities pursuant to the local service agreements. In compliance with Federal Communications Commission (“FCC”) regulations for both Nexstar and Mission, Mission maintains complete responsibility for and control over programming, finances, personnel and operation of its stations. Under the local service agreements, Nexstar has received substantially all of Mission’s available cash, after satisfaction of operating costs and debt obligations. Mission anticipates that Nexstar will continue to receive substantially all of Mission’s available cash, after satisfaction of operating costs and debt obligations. Mission has granted Nexstar purchase options to acquire the assets and assume the liabilities of each Mission station, subject to FCC consent, for consideration equal to the greater of (1) seven times the station’s cash flow, as defined in the option agreement, less the amount of its indebtedness as defined in the option agreement, or (2) the amount of its indebtedness. Cash flow is defined as income or loss from operations, plus depreciation and amortization (including amortization of broadcast rights), interest income, non-cash trade and barter expenses, nonrecurring expenses (including time brokerage agreement fees), network compensation payments received or receivable and corporate management fees, less payments for broadcast rights, non-cash trade and barter revenue and network compensation revenue. Additionally, on November 29, 2011, Mission’s shareholders granted Nexstar an option to purchase any or all of the Company’s common stock, subject to FCC consent, for a price equal to the pro rata portion of the greater of (1) five times the Mission stations’ cash flow, as defined in the agreement, reduced by the amount of indebtedness, as defined in the agreement, or (2) $100,000. These option agreements (which expire on various dates between 2018 and 2027) are freely exercisable or assignable by Nexstar without consent or approval by Mission or its shareholders. The Company expects these option agreements to be renewed upon expiration. Nexstar is deemed under accounting principles generally accepted in the United States of America (“U.S. GAAP”) Characterization of SSA Fees The Company presents the fees incurred pursuant to SSAs with Nexstar as an operating expense in the Company’s Statements of Operations. The Company’s decision to characterize the SSA fees in this manner is based on management’s conclusion that (1) the benefit the Company’s stations receive from these local service agreements is sufficiently separate from the consideration paid to the Company from Nexstar under JSAs, (2) management can reasonably estimate the fair value of the benefit our stations receive under the SSAs, and (3) the SSA fees the Company pays to Nexstar do not exceed the estimated fair value of the benefits the Company’s stations receive. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and use assumptions that affect the reported amounts of assets and liabilities and the disclosure for contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The more significant estimates made by management include those relating to the allowance for doubtful accounts, valuation of assets acquired and liabilities assumed in business combinations, retransmission revenue recognized, trade and barter transactions, income taxes, the recoverability of goodwill, FCC licenses and other long-lived assets, the recoverability of broadcast rights and the useful lives of property and equipment and intangible assets. Actual results may vary from such estimates recorded. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable consist primarily of billings to cable and satellite carriers for compensation associated with retransmission consent agreements. The Company maintains an allowance for doubtful accounts when necessary for estimated losses resulting from the inability of customers to make required payments. Management evaluates the collectability of accounts receivable based on a combination of factors, including customer payment history, known customer circumstances, the overall aging of customer balances and trends. In circumstances where management is aware of a specific customer’s inability to meet its financial obligations, an allowance is recorded to reduce the receivable amount to an amount estimated to be collected. Concentration of Credit Risk Financial instruments which potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash deposits are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits; however, the Company believes these deposits are maintained with financial institutions of reputable credit and are not subject to any unusual credit risk. A significant portion of the Company’s accounts receivable is due from cable or satellite operators. The Company does not require collateral from its customers, but maintains reserves for potential credit losses. Management believes that the allowance for doubtful accounts is adequate, but if the financial condition of the Company’s retransmission carriers were to deteriorate, additional allowances may be required. The Company has not experienced significant losses related to receivables from individual customers or by geographical area. Revenue Recognition The Company’s revenue is primarily derived from the sale of television advertising by Nexstar under JSAs, retransmission compensation and other broadcast related revenues: • Revenue from Nexstar, representing a percentage of net advertising revenue derived from the sale of commercials on the Company’s stations, is recognized in the period during which the spots are broadcast. • Retransmission compensation is recognized based on the estimated number of subscribers over the contract period, based on historical levels and trends for individual providers. • Tower rent revenues are recognized in the period during which the services are provided. The Company barters advertising time for certain program material. These transactions, except those involving exchange of advertising time for certain network programming, are recorded at management’s estimate of the fair value of the advertising time exchanged, which approximates the fair value of the program material received. The fair value of advertising time exchanged is estimated by applying average historical advertising rates for specific time periods. Revenue from barter transactions is recognized as the related advertisement spots are broadcast. Barter expense is recognized at the time program broadcast rights assets are used. The Company recorded $4.0 million of barter revenue and barter expense for each of the years ended December 31, 2017, 2016 and 2015. Barter expense is included in amortization of broadcast rights in the Company’s Statements of Operations. The Company determines whether gross or net presentation is appropriate based on its relationship in the applicable transactions with its ultimate customer. Broadcast Rights and Broadcast Rights Payable The Company records broadcast rights contracts as an asset and a liability when the following criteria are met: (1) the license period has begun, (2) the cost of each program is known or reasonably determinable, (3) the program material has been accepted in accordance with the license agreement, and (4) the program is produced and available for broadcast. Cash broadcast rights are initially recorded at the contract cost. Barter broadcast rights are recorded at fair value, which is estimated by using average historical advertising rates for the time periods where the programming will air. Broadcast rights are amortized on a straight-line basis over the period the programming airs. The current portion of broadcast rights represents those rights available for broadcast which will be amortized in the succeeding year. At least quarterly, the Company evaluates the net realizable value, calculated using the average historical advertising rates for the programs or the time periods the programming will air, of broadcast rights and adjusts amortization in that quarter for any deficiency calculated. Property and Equipment, Net Property and equipment is stated at cost or estimated fair value at the date of acquisition. The cost and related accumulated depreciation applicable to assets sold or retired are removed from the accounts and the gain or loss on disposition is recognized. Major renewals and betterments are capitalized and ordinary repairs and maintenance are charged to expense in the period incurred. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets (see Note 5). Intangible Assets, Net Intangible assets consist primarily of goodwill, broadcast licenses (“FCC licenses”), network affiliation agreements and customer relationships arising from acquisitions. The Company accounts for acquired businesses using the acquisition method of accounting, which requires that purchase prices, including any contingent consideration, are measured at acquisition date fair values. These purchase prices are allocated to the assets acquired and liabilities assumed at estimated fair values at the date of acquisition using various valuation techniques, including discounted projected cash flows, the cost approach and the income approach. The fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates and estimated discount rates. The excess of the purchase price over the fair value of net assets acquired is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, the Company records adjustments related to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments are recognized in the Company’s Statements of Operations. The Company’s goodwill and FCC licenses are considered to be indefinite-lived intangible assets and are not amortized but are tested for impairment annually in the Company’s fourth quarter or whenever events or changes in circumstances indicate that such assets might be impaired. The use of an indefinite life for FCC licenses contemplates the Company’s historical ability to renew its licenses and that such renewals generally may be obtained indefinitely and at little cost. Therefore, cash flows derived from the FCC licenses are expected to continue indefinitely. Network affiliation agreements are subject to amortization computed on a straight-line basis over the estimated useful life of 15 years. The 15 year life assumes affiliation contracts will be renewed upon expiration. Changes in the likelihood of renewal could require a change in the useful life of such assets and cause an acceleration of amortization. The Company evaluates the remaining lives of its network affiliations whenever changes occur in the likelihood of affiliation contract renewals, and at least on an annual basis. Historically, the Company considered each television station market as a reporting unit for purposes of goodwill and FCC license impairment testing because management viewed, managed and evaluated its stations on a market basis. In the first quarter of 2017, because of the changes in the organizational structure at Nexstar that now focus on the overall broadcast business (Nexstar provides certain services to Mission stations under various local service agreements), and because Mission’s management sees its operations as one broadcast business, the Company shifted its operating segments from market level into broadcast business level. The Company first assesses the qualitative factors to determine the likelihood of the goodwill and FCC licenses being impaired. The qualitative analysis includes, but is not limited to, assessing the changes in macroeconomic conditions, regulatory environment, industry and market conditions, and the financial performance versus budget of the reporting units, as well as any other events or circumstances specific to the reporting units or the FCC licenses. If it is more likely than not that the fair value of a reporting unit’s goodwill or a station’s FCC license is greater than its carrying amount, no further testing will be required. Otherwise, the Company will apply the quantitative impairment test method. The quantitative impairment test for FCC licenses consists of a market-by-market comparison of the carrying amounts of FCC licenses with their fair value, using a discounted cash flow analysis. In prior years, the Company’s quantitative impairment test for goodwill utilized a two-step fair value approach. The first step of the goodwill impairment test was used to identify potential impairment by comparing the fair value of the reporting unit to its carrying amount. The fair value of a reporting unit was determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeded its carrying amount, goodwill was not considered impaired. If the carrying amount of the reporting unit exceeded its fair value, the second step of the goodwill impairment test was performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compared the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. The implied fair value of goodwill was determined by performing an assumed purchase price allocation, using the reporting unit fair value (as determined in Step 1) as the purchase price. If the carrying amount of goodwill exceeded the implied fair value, an impairment loss was recognized in an amount equal to that excess. In 2017, as discussed also under Recent Accounting Pronouncements, the Company early adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (ASU 2017-04), which simplified the measurement of goodwill impairment by removing the second step of the goodwill impairment test that required a hypothetical purchase price allocation. Under ASU 2017-04, the annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The quantitative impairment test for FCC licenses consists of a market-by-market comparison of the carrying amounts of FCC licenses with their fair value, using a discounted cash flow analysis. Determining the fair value of reporting units requires management to make a number of judgments about assumptions and estimates that are highly subjective and that are based on unobservable inputs. The actual results may differ from these assumptions and estimates, and it is possible that such differences could have a material impact on the Company’s Financial Statements. In addition to the various inputs (i.e., market growth, operating profit margins, discount rates) used to calculate the fair value of FCC licenses and reporting units, the Company evaluates the reasonableness of its assumptions by comparing the total fair value of all its reporting units to its total market capitalization; and by comparing the fair values of its reporting units and FCC licenses to recent market television station sale transactions. The Company tests finite-lived intangible assets and other long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. An impairment in the carrying amount of a finite-lived intangible asset is recognized when the expected discounted future operating cash flow derived from the operation to which the asset relates is less than its carrying value. The impairment test for finite-lived intangible assets consists of an asset (asset group) comparison of the carrying amount with their fair value, using a discounted cash flow analysis. Debt Financing Costs Debt financing costs represent direct costs incurred to obtain long-term financing and are amortized to interest expense over the term of the related debt using the effective interest method. Previously capitalized debt financing costs are expensed and included in loss on extinguishment of debt if the Company determines that there has been a substantial modification of the related debt. As of December 31, 2017 and 2016, debt financing costs related to term loans of $5.1 million and $2.1 million, respectively, were presented as a direct deduction from the carrying amount of debt. Debt financing costs related to the revolving credit facility of $0.1 million at each of December 31, 2017 and 2016 were included in other noncurrent assets. Comprehensive Income Comprehensive income includes net income and certain items that are excluded from net income and recorded as a separate component of shareholders’ deficit. During the years ended December 31, 2017, 2016 and 2015, the Company had no items of other comprehensive income and, therefore, comprehensive income does not differ from reported net income. Financial Instruments The Company utilizes the following categories to classify the valuation methodologies for fair values of financial assets and liabilities: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The carrying amount of cash and cash equivalents, accounts receivable, broadcast rights payable, accounts payable and accrued expenses approximates fair value due to their short-term nature. See Note 7 for fair value disclosures related to the Company’s debt. Income Taxes The Company accounts for income taxes under the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and tax basis of assets and liabilities. A valuation allowance is applied against net deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. The Company recognizes interest and penalties relating to income taxes within income tax expense. Recent Accounting Pronouncements New Accounting Standards Adopted In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (ASU 2017-04). The standard removes Step 2 of the goodwill impairment test, which requires a company to perform procedures to determine the fair value of a reporting unit’s assets and liabilities following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, a goodwill impairment charge will now be measured as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU No. 2017-04 will be effective for fiscal years beginning on January 1, 2020, including interim periods within those fiscal years, and early adoption as of January 1, 2017 is permitted. The Company has elected early adoption and, as the new guidance is required to be applied on a prospective basis, the Company used the simplified test in its annual fourth quarter 2017 testing. The adoption of this ASU did not have a material impact on the Company’s Financial Statements. New Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which updates the accounting guidance on revenue recognition. This standard is intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, and improve disclosure requirements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations to clarify the implementation of guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies the implementation guidance in identifying performance obligations in a contract and determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients. This update amends the guidance in the new revenue standard on collectability, noncash consideration, presentation of sales tax, and transition and is intended to address implementation issues that were raised by stakeholders and provide additional practical expedients. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which makes minor corrections or minor improvements that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. In September 2017, the FASB issued ASU No. 2017-13, Revenue recognition (Topic 605), Revenue from contracts with customers (Topic 606), Leases (Topic 840) and Leases (Topic 842), which allows certain public entities to use the private company effective dates for adoption of ASC 606 and supersedes certain SEC paragraphs in the Codification. In November 2017, the FASB issued ASU No. 2017-14, Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606), which aligns SEC guidance with the new revenue standard. The amendments are intended to address implementation issues that were raised by stakeholders and provide additional practical expedients to reduce the cost and complexity of applying the new revenue standard. The above updates are effective for interim and annual reporting periods beginning after December 15, 2017. The Company will adopt these updates effective January 1, 2018 under the modified retrospective approach. Based on our evaluation performed to date, we believe the cumulative adjustment as of January 1, 2018 that will result from this adoption will not be material. The Company will no longer recognize barter revenue, barter expense, barter assets and liabilities resulting from the exchange of advertising time for certain program material. Barter revenue and barter expense was $4.0 million for each year ended 2017, 2016 and 2015. As of December 31, 2017, the current barter assets (and the related current barter liabilities) were $0.6 million, and the noncurrent barter assets (and the related noncurrent barter liabilities) were $0.5 million. As of December 31, 2016, the current barter assets (and the related current barter liabilities) were $0.8 million, and the noncurrent barter assets (and the related noncurrent barter liabilities) were $0.7 million. Mission’s revenue from Nexstar arising from television spot advertising that is sold and collected by Nexstar and paid to Mission is short-term in nature. This revenue source comprises approximately 34% and 41% of the reported net revenue in 2017 and 2016. We expect revenue will continue to be recognized as commercials are aired. We expect that revenue earned under retransmission agreements will be recognized under the licensing of intellectual property guidance in the standard, which will not result in a material change to our current revenue recognition. This revenue source comprised approximately 61% and 55% of the reported net revenue in 2017 and 2016, respectively. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). The new guidance requires the recording of assets and liabilities arising from leases on the balance sheet accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. The new guidance is expected to provide transparency of information and comparability among organizations. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the provisions of the accounting standard update. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326).” The standard requires entities to estimate loss of financial assets measured at amortized cost, including trade receivables, debt securities and loans, using an expected credit loss model. The expected credit loss differs from the previous incurred losses model primarily in that the loss recognition threshold of “probable” has been eliminated and that expected loss should consider reasonable and supportable forecasts in addition to the previously considered past events and current conditions. Additionally, the guidance requires additional disclosures related to the further disaggregation of information related to the credit quality of financial assets by year of the asset’s origination for as many as five years. Entities must apply the standard provision as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2016-13 on its financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) (ASU 2016-15). The amendments in ASU 2016-15 address eight specific cash flow issues and apply to all entities that are required to present a statement of cash flows under FASB Accounting Standards Codification 230, Statement of Cash Flows. The amendments in ASU 2016-15 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted, including adoption during an interim period. The Company does not expect the implementation of this standard to have a material impact on its statements of cash flows. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01). ASU 2017-01 provides clarification on the definition of a business and adds guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. To be considered a business under the new guidance, it must include an input and a substantive process that together significantly contribute to the ability to create output. The amendment removes the evaluation of whether a market participant could replace missing elements. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and will be applied prospectively. The potential impact of this new guidance will be assessed for future acquisitions or dispositions, but it is not expected to have a material impact on the Company’s financial statements. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions Parker On May 27, 2014, Mission assumed the rights, title and interest to an existing purchase agreement to acquire Parker Broadcasting of Colorado, LLC, the owner of television station KFQX, the FOX affiliate in the Grand Junction, Colorado market, for $4.0 million in cash, subject to adjustments for working capital. In connection with this assumption, Mission paid a deposit of $3.2 million on June 13, 2014. The acquisition was approved by the FCC in February 2017 and met all other customary conditions in March 2017. On March 31, 2017, Mission completed this acquisition and paid the remaining purchase price of $0.8 million, funded by cash on hand. The acquisition allows Mission entrance into this market. The fair values of the assets acquired and liabilities assumed are as follows (in thousands): FCC licenses $ 1,539 Network affiliation agreements 1,743 Other intangible assets 20 Goodwill 698 Total assets acquired $ 4,000 The fair value assigned to goodwill is attributable to future expense reductions utilizing management’s leverage in programming and other station operating costs. The goodwill and FCC licenses are deductible for tax purposes. The intangible assets related to the network affiliation agreements are amortized over 15 years. |
Local Service Agreements with N
Local Service Agreements with Nexstar | 12 Months Ended |
Dec. 31, 2017 | |
Local Service Agreements [Abstract] | |
Local Service Agreements with Nexstar | 4. Local Service Agreements with Nexstar The Company has entered into local service agreements with Nexstar to provide sales and/or operating services to all of its stations. For the stations with a shared services agreement (“SSA”), the Nexstar station in the market provides certain services including news production, technical maintenance and security, in exchange for monthly payments to Nexstar. For each station with respect to which the Company has entered into an SSA, it has also entered into a joint sales agreement (“JSA”), whereby Nexstar sells certain advertising time of the station and retains a percentage of the related revenue. For the stations with a time brokerage agreement (“TBA”), Nexstar programs most of the station’s broadcast time, sells the station’s advertising time and retains the advertising revenue it generates in exchange for monthly payments to Mission, based on the station’s monthly operating expenses. JSA and TBA fees generated from Nexstar under the agreements are reported as “Revenue from Nexstar Broadcasting, Inc.,” and SSA fees incurred by Mission under the agreements are reported as “Fees incurred pursuant to local service agreements with Nexstar Broadcasting, Inc.” in the accompanying Condensed Statements of Operations. Under these agreements, Mission is responsible for certain operating expenses of its stations and therefore may have unlimited exposure to any potential operating losses. Mission will continue to operate its stations under the SSAs and JSAs or TBAs until the termination of such agreements. The local service agreements generally have a term of eight to ten years with renewal periods. Nexstar indemnifies Mission from Nexstar’s activities pursuant to the local service agreements to which Nexstar is a party. Under the local service agreements, Nexstar receives substantially all of the Company’s available cash, after satisfaction of operating costs and debt obligations. The Company anticipates that Nexstar will continue to receive substantially all of its available cash, after satisfaction of operating costs and debt obligations. In compliance with FCC regulations for both the Company and Nexstar, Mission maintains complete responsibility for and control over programming, finances, personnel and operations of its stations. Mission had the following local service agreements in effect with Nexstar as of December 31, 2017: Station Market Type of Agreement Expiration Consideration WFXP Erie, PA TBA 8/16/26 Monthly payments received from Nexstar KHMT Billings, MT TBA 12/14/25 Monthly payments received from Nexstar KFQX Grand Junction, CO TBA 6/13/22 Monthly payments received from Nexstar KJTL/KJBO-LP Wichita Falls, TX-Lawton, OK SSA JSA 6/30/25 5/31/19 $150 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WYOU Wilkes Barre-Scranton, PA SSA JSA 6/30/25 9/30/24 $771 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KODE Joplin, MO-Pittsburg, KS SSA JSA 6/30/25 9/30/24 $279 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KRBC Abilene-Sweetwater, TX SSA JSA 6/30/25 6/30/23 $204 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KSAN San Angelo, TX SSA JSA 6/30/25 5/31/24 $171 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WAWV Terre Haute, IN SSA JSA 6/30/25 5/8/23 $67 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KCIT/KCPN-LP Amarillo, TX SSA JSA 6/30/25 4/30/19 $200 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KAMC Lubbock, TX SSA JSA 6/30/25 2/15/19 $275 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KOLR Springfield, MO SSA JSA 6/30/25 2/15/19 $642 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WUTR Utica, NY SSA JSA 6/30/25 3/31/24 $83 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WTVO Rockford, IL SSA JSA 6/30/25 10/31/24 $292 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KTVE Monroe, LA-El Dorado, AR SSA JSA 6/30/25 1/16/28 $325 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WTVW Evansville, IN SSA JSA 6/30/25 11/30/19 $175 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KLRT/KASN Little Rock-Pine Bluff, AR SSA JSA 6/30/25 1/1/21 $525 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WVNY Burlington-Plattsburgh, VT SSA JSA 6/30/25 3/1/21 $258 thousand per month paid to Nexstar 70% of net revenue received from Nexstar |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consisted of the following, as of December 31 (dollars in thousands): Estimated useful life, in years 2017 2016 Buildings and improvements 39 $ 8,385 $ 8,330 Land N/A 1,632 1,687 Leasehold improvements term of lease 70 70 Studio and transmission equipment 5-15 38,697 40,542 Computer equipment 3-5 544 554 Furniture and fixtures 7 832 832 Vehicles 5 734 735 Construction in progress N/A 989 36 51,883 52,786 Less: accumulated depreciation (33,429 ) (33,222 ) Property and equipment, net $ 18,454 $ 19,564 In 2001, entities acquired by the Company sold certain of their telecommunications tower facilities for cash and then entered into noncancelable operating leases with the buyer for tower space. In connection with this transaction, a gain on the sale was deferred and is being recognized over the lease term which expires in May 2021. As of December 31, 2017 and 2016, the balance of deferred gain included $0.4 million and $0.6 million, respectively, in other noncurrent liabilities in the accompanying Balance Sheets and $0.2 million in other current liabilities as of each of the years then ended. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 6. Intangible Assets and Goodwill Intangible assets subject to amortization consisted of the following, as of December 31 (dollars in thousands): Estimated December 31, 2017 December 31, 2016 useful life, Accumulated Accumulated in years Gross Amortization Net Gross Amortization Net Network affiliation agreements 15 $ 86,248 $ (71,150 ) $ 15,098 $ 84,505 $ (68,885 ) $ 15,620 Other definite-lived intangible assets 1-15 15,681 (14,938 ) 743 15,661 (14,811 ) 850 Other intangible assets $ 101,929 $ (86,088 ) $ 15,841 $ 100,166 $ (83,696 ) $ 16,470 The estimated useful life of network affiliation agreements contemplates renewals of the underlying agreements based on the Company’s historical ability to renew such agreements without significant cost or modifications to the conditions from which the value of the affiliation was derived. These renewals can result in estimated useful lives of individual affiliations ranging from 12 to 20 years. Management has determined that 15 years is a reasonable estimate within the range of such estimated useful lives. No events or circumstances were noted leading management to conclude that impairment testing should be performed on intangible assets subject to amortization during 2017, 2016 and 2015. The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years and thereafter for definite-lived intangible assets as of December 31, 2017 (in thousands): 2018 2,129 2019 1,919 2020 1,518 2021 1,517 2022 1,517 Thereafter 7,241 $ 15,841 The carrying amounts of goodwill and FCC licenses for the years ended December 31, 2017 and 2016 are as follows (in thousands): Goodwill FCC Licenses Accumulated Accumulated Gross Impairment Net Gross Impairment Net Balances as of December 31, 2016 $ 34,039 $ (1,550 ) $ 32,489 $ 52,260 $ (10,697 ) $ 41,563 Acquisitions (See Note 3) 698 - 698 1,539 - 1,539 Balances as of December 31, 2017 $ 34,737 $ (1,550 ) $ 33,187 $ 53,799 $ (10,697 ) $ 43,102 As discussed in Note 2—Intangible Assets, Net, the Company early adopted (during the year 2017) ASU No. 2017-04 which simplified the measurement of goodwill impairment tests. Under ASU 2017-04, the annual, or interim, goodwill impairment test is now performed by comparing the fair value of a reporting unit with its carrying amount. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired, and no further testing is required. If the fair value of the reporting unit is less than the carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Historically, the Company considered each television station market as a reporting unit for purposes of goodwill and FCC license impairment testing because management views, manages and evaluates its stations on a market basis. In the first quarter of 2017, because of the changes in the organizational structure at Nexstar that now focus on the overall broadcast business (Nexstar provides certain services to Mission stations under various local service agreements), and because Mission’s management sees its operations as one broadcast business, the Company shifted its operating segments from market level into broadcast business level. The Company evaluated its goodwill immediately prior to the change in the reporting unit, using the one-step qualitative analysis approach, and concluded that there was no impairment. The aggregate goodwill of each television station market was then assigned to the single broadcast business reporting unit. In the fourth quarter of 2017, the Company performed its annual impairment tests on goodwill and legacy FCC licenses, using the one-step quantitative approach, resulting in no impairment charge. In 2016, management elected to perform its annual impairment tests on goodwill and FCC licenses using the qualitative analysis approach by market and concluded that it was more likely than not that the fair value of the reporting units and the fair value of FCC licenses would sufficiently exceed their respective carrying amounts. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt Long-term debt consisted of the following, as of December 31 (in thousands): 2017 2016 Term loans, net of financing costs and discount of $5,099 and $2,126, respectively $ 225,742 $ 223,765 Less: current portion (2,314 ) (1,160 ) $ 223,428 $ 222,605 Senior Secured Credit Facility On January 17, 2017, Mission borrowed a $232.0 million senior secured Term Loan B, issued at 99.50%, due January 17, 2024. The proceeds from this loan were primarily used to refinance Mission’s then existing Term Loan B with an outstanding principal balance of $225.9 million. In January 2017, Mission also issued a $3.0 million revolving loan commitment, maturing on January 17, 2022, of which no amount was drawn. This facility replaced Mission’s previous revolving loan commitment. Mission recognized a loss on extinguishment of debt of $2.1 million as a result of refinancing its previous debt , representing the write-off of unamortized debt financing costs and debt discounts On July 19, 2017, the Company amended its senior secured credit facility, which reduced the 50 July 19, 2022. As of December 31, 2017 and 2016, the Mission senior secured credit facility had $225.7 million and $223.8 million outstanding under its term loan, respectively, and no amounts outstanding under its revolving credit facility as of each of the years then ended. The Mission term loan is payable in consecutive quarterly installments of 0.25%, with the remainder due at maturity. During the year ended December 31, 2017, Mission repaid scheduled maturities of $1.2 million of its term loans. Interest rates are selected at Mission’s option and the applicable margin is adjusted quarterly as defined in Mission’s amended credit agreement. The interest rate of Mission’s term loan was 4.06% and 3.75% for the years ended December 31, 2017 and 2016, respectively. The interest rate on Mission’s revolving loans was 3.56% and 2.77% as of December 31, 2017 and 2016, respectively. Interest is payable periodically based on the type of interest rate selected. Additionally, Mission is required to pay quarterly commitment fees on the unused portion of its revolving loan commitment of 0.5% per annum. Unused Commitments and Borrowing Availability As of December 31, 2017, the Company had $3.0 million of total unused revolving loan commitments under the Mission senior secured credit facility, all of which was available for borrowing, based on the covenant calculations. Collateralization and Guarantees of Debt Nexstar guarantees full payment of all obligations under the Mission senior secured credit facility in the event of Mission’s default. Similarly, Mission is a guarantor of Nexstar’s senior secured credit facility, the $900.0 million 5.625% senior unsecured notes (the “5.625% Notes”) and the $275.0 million 6.125% senior unsecured notes (the “6.125% Notes”) issued by Nexstar. The senior secured credit facilities are collateralized by a security interest in substantially all the combined assets, excluding FCC licenses, of Nexstar and Mission. The 5.625% Notes and the 6.125% Notes are general senior unsecured obligations subordinated to all of Mission’s senior secured debt. In the event that Nexstar is unable to repay amounts due under these debt obligations, the Company will be obligated to repay such amounts. The maximum potential amount of future payments that Mission would be required to make under these guarantees would be generally limited to the amount of borrowings outstanding under Nexstar’s senior secured credit facility, the 5.625% Notes and the 6.125% Notes. As of December 31, 2017, Nexstar had $886.5 million outstanding obligations under its 5.625% Notes, $273.0 million outstanding obligations under its 6.125% Notes and had a maximum commitment of $2.662 billion under its senior secured credit facility, of which $1.782 billion in Term Loan B (due January 17, 2024) and $711.0 million in Term Loan A (due July 19, 2022) were outstanding. Debt Covenants The Mission term loan does not require financial covenant ratios, but does provide for default in the event Nexstar does not comply with all covenants contained in its credit agreement. Nexstar was in compliance with its financial covenants as of December 31, 2017. Fair Value of Debt The aggregate carrying amounts and estimated fair values of the Company’s debt were as follows, as of December 31 (in thousands): 2017 2016 Carrying Fair Carrying Fair Amount Value Amount Value Term loans $ 225,742 $ 231,580 $ 223,765 $ 225,646 (1) The fair value of senior secured credit facilities is computed based on borrowing rates currently available to Mission for bank loans with similar terms and average maturities. These fair value measurements are considered Level 3, as significant inputs to the fair value calculation are unobservable in the market. Debt Maturities The maturities of the Company’s debt, excluding the unamortized discount and certain debt financing costs, as of December 31, 2017 are summarized as follows (in thousands): 2018 2,314 2019 2,314 2020 2,314 2021 2,314 2022 2,314 Thereafter 219,271 $ 230,841 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Common Stock | 8. Common Stock The Company is owned by two shareholders, Nancie J. Smith, Chairman of the Board and Secretary, and Dennis Thatcher, President, Treasurer and Director. As of December 31, 2017 and 2016 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The income tax expense (benefit) consisted of the following components for the years ended December 31 (in thousands): 2017 2016 2015 Current tax (benefit) expense: Federal $ (1,355 ) $ 545 $ 488 State 304 760 692 (1,051 ) 1,305 1,180 Deferred tax expense: Federal 4,140 9,844 9,635 State 311 1,188 1,357 4,451 11,032 10,992 Income tax expense $ 3,400 $ 12,337 $ 12,172 The income tax expense (benefit) differs from the amount computed by applying the statutory federal income tax rate of 35% to income (loss) before income taxes. The sources and tax effects of the differences were as follows, for the years ended December 31 (in thousands): 2017 2016 2015 Income tax expense at 35% statutory federal rate $ 3,162 $ 11,131 $ 10,595 State and local taxes, net of federal benefit 410 1,265 1,154 Impact of federal tax rate reduction on deferred taxes 1,220 - - Impact of federal tax rate reduction on uncertain tax positions (1,471 ) - - Other 79 (59 ) 423 Income tax expense (benefit) $ 3,400 $ 12,337 $ 12,172 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code of 1986, as amended (the “Code”). The Act reduces the federal corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017. Although the federal corporate income tax rate reduction is only effective for tax periods beginning after December 31, 2017, ASC 740 requires the Company to remeasure the existing net deferred tax asset in the period of enactment. The Act also provides for immediate expensing of 100% of the costs of qualified property that are incurred and placed in service during the period from September 27, 2017 to December 31, 2022. Beginning January 1, 2023, the immediate expensing provision is phased down by 20% per year until it is completely phased out as of January 1, 2027. Additionally, effective January 1, 2018, the Act imposes possible limitations on the deductibility of interest expense. As a result of this provision of the Act, the Company’s deduction for interest expense could be limited in future years. The effects of other provisions of the Act are not expected to have a material impact on the Company’s financial statements. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance on accounting for the tax effects of the Act. SAB 118 provides a measurement period that begins in the reporting period that includes the Act’s enactment date and ends when an entity has obtained, prepared and analyzed the information that was needed in order to complete the accounting requirements under ASC 740, however in no circumstance should the measurement period extend beyond one year from the enactment date. In accordance with SAB 118, a company must reflect in its financial statements the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. SAB 118 provides that to the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. In accordance with SAB 118, the Company has recorded a provisional estimated income tax expense of $1.2 million for the year ended December 31, 2017 related to the remeasurement of the Company’s net deferred tax asset. As a result of the adoption of the Act, the Company remeasured the net deferred tax asset at the reduced federal corporate income tax rate. The remeasurement of the net deferred tax asset reflected in the financial statements is a provisional estimate as we are still analyzing the impact of certain provisions of the Act and refining our calculations which could impact the remeasurement of the net deferred tax asset. The Company will recognize any change to the provisional estimates as it refines the accounting for the impact of the Act. The Company expects to complete its analysis of the provisional item during the second half of 2018. Additionally, the Company recorded an income tax benefit of $1.5 million for the year ended December 31, 2017 related to the remeasurement of its uncertain tax positions at the reduced federal corporate income tax rate. The Company considers the accounting for the remeasurement of its uncertain tax positions at the reduced federal corporate income tax rate as complete. The components of the net deferred tax asset were as follows, as of December 31 (in thousands): 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 11,726 $ 21,456 Rent 601 1,035 Other 2,621 2,468 Total deferred tax assets 14,948 24,959 Deferred tax liabilities: Property and equipment (2,141 ) (3,511 ) Goodwill (4,300 ) (5,648 ) Other intangible assets (901 ) (1,601 ) FCC licenses (6,098 ) (8,240 ) Total deferred tax liabilities (13,440 ) (19,000 ) Net deferred tax assets $ 1,508 $ 5,959 As of December 31, 2017, the Company’s reserve for uncertain tax positions totaled approximately $2.2 million. For the years ended December 31, 2017, 2016 and 2015 there were $2.2 million, $3.7 million and $3.7 million of gross unrecognized tax benefits, respectively, that would reduce the effective tax rate if the underlying tax positions were sustained or settled favorably. A reconciliation of the beginning and ending balances of the gross liability for uncertain tax positions is as follows (in thousands): 2017 2016 2015 Uncertain tax position liability at the beginning of the year $ 3,677 $ 3,677 $ 3,677 Decreases related to tax positions taken during prior periods (1,471 ) - - Uncertain tax position liability at the end of the year $ 2,206 $ 3,677 $ 3,677 While the Company does not anticipate any significant changes to the amount of liabilities for gross unrecognized tax benefits within the next twelve months, there can be no assurance that the outcomes from any tax examinations will not have a significant impact on the amount of such liabilities, which could have an impact on the operating results or financial position of the Company. Interest expense and penalties related to the Company’s uncertain tax positions would be reflected as a component of income tax expense in the Company’s Statements of Operations. For the years ended December 31, 2017, 2016 and 2015, the Company did not accrue interest on the unrecognized tax benefits as an unfavorable outcome upon examination would not result in a cash outlay but would reduce NOLs. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is subject to U.S. federal tax examinations for years after 2013. Additionally, any NOLs that were generated in prior years and utilized in the current or future years may also be subject to examination by the Internal Revenue Service. State jurisdictions that remain subject to examination are not considered significant. As of December 31, 2017, the Company has federal NOLs available of $53.8 million and post-apportionment state NOLs available of $5.7 million which are available to reduce future taxable income if utilized before their expiration. The federal NOLs expire at various dates through 2033 if not utilized. Utilization of NOLs in the future may be limited if changes in the Company’s ownership occur. |
FCC Regulatory Matters
FCC Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
FCC Regulatory Matters | 10. FCC Regulatory Matters Television broadcasting is subject to the jurisdiction of the FCC under the Communications Act of 1934, as amended (the “Communications Act”). The Communications Act prohibits the operation of television broadcasting stations except under a license issued by the FCC, and empowers the FCC, among other things, to issue, revoke and modify broadcasting licenses, determine the location of television stations, regulate the equipment used by television stations, adopt regulations to carry out the provisions of the Communications Act and impose penalties for the violation of such regulations. The FCC’s ongoing rule making proceedings could have a significant future impact on the television industry and on the operation of the Company’s stations. In addition, the U.S. Congress may act to amend the Communications Act or adopt other legislation in a manner that could impact the Company’s stations and the television broadcast industry in general. The FCC has adopted rules with respect to the final conversion of existing low power and television translator stations to digital operations, which must be completed in July 2021. Media Ownership The FCC is required to review its media ownership rules every four years and to eliminate those rules it finds no longer serve the “public interest, convenience and necessity.” In August 2016, the FCC adopted a Second Report and Order (the “2016 Ownership Order”) concluding the agency’s 2010 and 2014 quadrennial reviews. The 2016 Ownership Order (1) retained the then-existing local television ownership rule and radio/television cross-ownership rule with minor technical modifications, (2) extended the ban on common ownership of two top-four television stations in a market to network affiliation swaps, (3) retained the then-existing ban on newspaper/broadcast cross-ownership in local markets while considering waivers and providing an exception for failed or failing entities, (4) retained the dual network rule, (5) made JSA relationships attributable interests and (6) defined a category of sharing agreements designated as SSAs between stations and required public disclosure of those SSAs (while not considering them attributable). The 2016 Ownership Order reinstated a rule that attributed another in-market station toward the local television ownership limits when one station owner sells more than 15% of the second station’s weekly advertising inventory under a joint sales agreement (this rule had been previously adopted in 2014, but was vacated by the U.S. Court of Appeals for the Third Circuit). Parties to JSAs entered into prior to March 31, 2014 were permitted to continue to operate under those JSAs until September 30, 2025. Various parties filed petitions seeking reconsideration of various aspects of the 2016 Ownership Order. On November 16, 2017, the FCC adopted an order (the “Reconsideration Order”) addressing the petitions for reconsideration. The Reconsideration Order (1) eliminated the rules prohibiting newspaper/broadcast cross-ownership and limiting television/radio cross-ownership, (2) eliminated the requirement that eight or more independently-owned television stations remain in a local market for common ownership of two television stations in that market to be permissible, (3) retained the general prohibition on common ownership of two “top four” stations in a local market but provided for case-by-case review, (4) eliminated the television JSA attribution rule, and (5) retained the SSA definition and disclosure requirement for television stations. These rule modifications took effect on February 7, 2018, when the U.S. Court of Appeals for the Third Circuit denied a mandamus petition which had sought to stay their effectiveness. The Reconsideration Order remains subject to appeals before the Third Circuit. On February 3, 2017, the FCC terminated in full its guidance (issued on March 12, 2014) requiring careful scrutiny of broadcast television applications which propose sharing arrangements and contingent interests. Accordingly, the FCC no longer evaluates whether options, loan guarantees and similar otherwise non-attributable interests create undue financial influence in transactions which also include sharing arrangements between television stations. The FCC’s media ownership rules limit the percentage of U.S. television households which a party may reach through its attributable interests in television stations to 39% on a nationwide basis. Historically, the FCC has counted the ownership of an ultra-high frequency (“UHF”) station as reaching only 50% of a market’s percentage of total national audience. On August 24, 2016, the FCC adopted a Report and Order abolishing the UHF discount for the purposes of a licensee’s determination of compliance with the 39% national cap, and that rule change became effective in October 2016. On April 20, 2017, the FCC adopted an order on reconsideration that reinstated the UHF discount. That order stated that the FCC would launch a comprehensive rulemaking later in 2017 to evaluate the UHF discount together with the national ownership limit. The FCC initiated that proceeding in December 2017, and comments and reply comments will be filed in the first and second quarters of 2018. The FCC’s April 2017 reinstatement of the UHF discount became effective on June 15, 2017. A petition for review of the FCC’s order reinstating the UHF discount remains pending in a federal appeals court. Mission is in compliance with the 39% national cap limitation without the UHF discount and, therefore, with the UHF discount as well. Spectrum The FCC is in the process of repurposing a portion of the broadcast television spectrum for wireless broadband use. Pursuant to federal legislation enacted in 2012, the FCC has conducted an incentive auction for the purpose of making additional spectrum available to meet future wireless broadband needs. Under the auction statute and rules, certain television broadcasters accepted bids from the FCC to voluntarily relinquish all or part of their spectrum in exchange for consideration, and certain wireless broadband providers and other entities submitted successful bids to acquire the relinquished television spectrum. Over the next several years, television stations that are not relinquishing their spectrum will be “repacked” into the frequency band still remaining for television broadcast use. The incentive auction commenced on March 29, 2016 and officially concluded on April 13, 2017. None of the Company’s television stations accepted bids to relinquish their television channels. Seven of the Company’s stations have been assigned new channels in the reduced post-auction television band. These “repacked” stations will be required to construct and license the necessary technical modifications to operate on their new assigned channels, and will need to cease operating on their existing channels, by deadlines which the FCC has established and which are no later than July 13, 2020. Congress has allocated up to an industry-wide total of Broadcasters and MVPDs have submitted estimates to the FCC of their reimbursable costs. As of October 17, 2017, these costs exceeded $1.86 billion (over $100 million more than the amount authorized by Congress), and the FCC has indicated that it expects those costs to rise. The Company cannot determine if the FCC will be able to fully reimburse the Company’s repacking costs as this is dependent on certain factors, including our ability to incur repacking costs that are equal to or less than the FCC’s allocation of funds to the Company and whether the FCC will have available funds to reimburse the Company for additional repacking costs that the Company previously may not have anticipated. Whether the FCC will have available funds for additional reimbursements will also depend on the repacking costs that will be incurred by other broadcasters and MVPDs that are also seeking reimbursements. The reallocation of television spectrum to broadband use may be to the detriment of the Company’s investment in digital facilities, could require substantial additional investment to continue current operations, and may require viewers to invest in additional equipment or subscription services to continue receiving broadcast television signals. The Company cannot predict the impact of the incentive auction and subsequent repacking on its business. Retransmission Consent \ On March 3, 2011, the FCC initiated a Notice of Proposed Rulemaking to reexamine its rules (i) governing the requirements for good faith negotiations between multichannel video program distributors (“MVPDs”) and broadcasters, including implementing a prohibition on one station negotiating retransmission consent terms for another station under a local service agreement; (ii) for providing advance notice to consumers in the event of dispute; and (iii) to extend certain cable-only obligations to all MVPDs. The FCC also asked for comment on eliminating the network non-duplication and syndicated exclusivity protection rules, which may permit MVPDs to import out-of-market television stations in certain circumstances. In March 2014, the FCC adopted a rule that prohibits joint retransmission consent negotiation between television stations in the same market which are not commonly owned and which are ranked among the top four stations in the market in terms of audience share. On December 5, 2014, federal legislation extended the joint negotiation prohibition to all non-commonly owned television stations in a market. This new rule requires Mission to separately negotiate its retransmission consent agreements. The December 2014 legislation also directed the FCC to commence a rulemaking to “review its totality of the circumstances test for good faith [retransmission consent] negotiations.” The FCC commenced this proceeding in September 2015. Comments and reply comments were filed in 2015 and 2016. In July 2016, the then-Chairman of the FCC publicly announced that the agency would not adopt additional rules in this proceeding. The proceeding remains open. Concurrently with its adoption of the prohibition on certain joint retransmission consent negotiations, the FCC also adopted a further notice of proposed rulemaking which seeks additional comment on the elimination or modification of the network non-duplication and syndicated exclusivity rules. The FCC’s prohibition on certain joint retransmission consent negotiations and its possible elimination or modification of the network non-duplication and syndicated exclusivity protection rules may affect the Company’s ability to sustain its current level of retransmission consent revenues or grow such revenues in the future and could have an adverse effect on the Company’s business, financial condition and results of operations. The Company cannot predict the resolution of the FCC’s network non-duplication and syndicated exclusivity proposals, or the impact of these proposals or the FCC’s prohibition on certain joint negotiations, on its business. Further, certain online video distributors and other over-the-top video distributors (“OTTDs”) have begun streaming broadcast programming over the Internet. In June 2014, the U.S. Supreme Court held that an OTTD’s retransmissions of broadcast television signals without the consent of the broadcast station violate copyright holders’ exclusive right to perform their works publicly as provided under the Copyright Act of 1976, as amended. In December 2014, the FCC issued a Notice of Proposed Rulemaking proposing to interpret the term “MVPD” to encompass OTTDs that make available for purchase multiple streams of video programming distributed at a prescheduled time, and seeking comment on the effects of applying MVPD rules to such OTTDs. Comments and reply comments were filed in 2015. Although the FCC has not classified OTTDs as MVPDs to date, several OTTDs have signed agreements for retransmission of local stations within their markets and others are actively seeking to negotiate such agreements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Broadcast Rights Commitments Broadcast rights acquired for cash under license agreements are recorded as an asset and a corresponding liability at the inception of the license period. Future minimum payments for license agreements for which the license period has not commenced and no asset or liability has been recorded are as follows as of December 31, 2017 (in thousands): 2018 $ 998 2019 1,030 2020 145 2021 77 2022 17 Thereafter - $ 2,267 Operating Leases The Company leases office space, vehicles, towers, antenna sites, studio and other operating equipment under noncancelable operating lease arrangements expiring through April 2032. Rent expense recorded in the Company’s Statements of Operations for such leases was $1.9 million during each of the years ended December 31, 2017, 2016 and 2015. Future minimum lease payments under these operating leases are as follows as of December 31, 2017 (in thousands): 2018 $ 2,119 2019 2,212 2020 2,298 2021 1,394 2022 864 Thereafter 6,571 $ 15,458 Guarantees of Nexstar Debt Mission is a guarantor of and has pledged substantially all its assets, excluding FCC licenses, to guarantee Nexstar’s credit facility. Mission is also a guarantor of Nexstar’s 6.125% Notes and Nexstar’s 5.625% Notes. The 6.125% Notes and the 5.625% Notes are general senior unsecured obligations subordinated to all of Mission’s senior secured debt. In the event that Nexstar is unable to repay amounts due under these debt obligations, Mission will be obligated to repay such amounts. The maximum potential amount of future payments that Mission would be required to make under these guarantees would be generally limited to the amount of borrowings outstanding under Nexstar’s senior secured credit facility, the 6.125% Notes and the 5.625% Notes. As of December 31, 2017, Nexstar had $273.0 million outstanding obligations under its 6.125% Notes due on February 15, 2022, had $886.5 million outstanding obligations under its 5.625% Notes due on August 1, 2024 and had a maximum commitment of $2.662 billion under its senior secured credit facility, of which $1.782 billion in Term Loan B and $711.0 million in Term Loan A were outstanding. Nexstar also has a $169.0 million revolving loan commitment, of which none was outstanding as of December 31, 2017. On January 16, 2018, Nexstar borrowed $44.0 million from its revolving credit facility to fund Nexstar’s acquisition of LKQD Technologies, Inc. (“LKQD”). On February 1, 2018, Nexstar prepaid $20.0 million of the outstanding principal balance under its Term Loan B. On February 16, 2018, Nexstar repaid $20.0 million of the outstanding principal balance under its revolving credit facility. On March 1, 2018, Nexstar prepaid $20.0 million of the outstanding principal balance under its Term Loan B. On March 16, 2018, Nexstar repaid $4.0 million of the outstanding principal balance under its revolving credit facility. Purchase Options Granted to Nexstar In consideration of the guarantee of Mission’s bank credit facility by Nexstar Media Group, Inc. and its subsidiaries, Mission has granted Nexstar purchase options to acquire the assets and assume the liabilities of each Mission station, subject to FCC consent, for consideration equal to the greater of (1) seven times the station’s cash flow, as defined in the option agreement, less the amount of its indebtedness as defined in the option agreement, or (2) the amount of its indebtedness. Cash flow is defined as income or loss from operations, plus depreciation and amortization (including amortization of broadcast rights), interest income, non-cash trade and barter expenses, nonrecurring expenses (including time brokerage agreement fees), network compensation payments received or receivable and corporate management fees, less payments for broadcast rights, non-cash trade and barter revenue and network compensation revenue. Additionally, Mission’s shareholders have granted Nexstar an option to purchase any or all of the Company’s common stock, subject to FCC consent, for a price equal to the pro rata portion of the greater of (1) five times the Mission stations’ cash flow, as defined in the agreement, reduced by the amount of indebtedness, as defined in the agreement, or (2) $100,000. These option agreements (which expire on various dates between 2018 and 2027) are freely exercisable or assignable by Nexstar without consent or approval by Mission or its shareholders. The Company expects these option agreements to be renewed upon expiration. Indemnification Obligations In connection with certain agreements that the Company enters into in the normal course of its business, including local service agreements, business acquisitions and borrowing arrangements, the Company enters into contractual arrangements under which the Company agrees to indemnify the other party to such arrangement from losses, claims and damages incurred by the indemnified party for certain events as defined within the particular contract. Such indemnification obligations may not be subject to maximum loss clauses and the maximum potential amount of future payments the Company could be required to make under these indemnification arrangements may be unlimited. Historically, payments made related to these indemnifications have been insignificant and the Company has not incurred significant costs to defend lawsuits or settle claims related to these indemnification agreements. Litigation From time to time, the Company is involved with claims that arise out of the normal course of business. In the opinion of management, any resulting liability with respect to these claims would not have a material adverse effect on the Company’s financial position or results of operations. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | 12. Employee Benefits The Company has established a retirement savings plan (the “Plan”) under Section 401(k) of the Code. The Plan covers substantially all employees of the Company who meet minimum age and service requirements, and allows participants to defer a portion of their annual compensation on a pre-tax basis. Contributions to the Plan may be made at the discretion of the Company. The Company contributed $23,000, $20,000 and $21,000 to the Plan for the years ended December 31, 2017, 2016 and 2015, respectively. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Characterization of SSA Fees | Characterization of SSA Fees The Company presents the fees incurred pursuant to SSAs with Nexstar as an operating expense in the Company’s Statements of Operations. The Company’s decision to characterize the SSA fees in this manner is based on management’s conclusion that (1) the benefit the Company’s stations receive from these local service agreements is sufficiently separate from the consideration paid to the Company from Nexstar under JSAs, (2) management can reasonably estimate the fair value of the benefit our stations receive under the SSAs, and (3) the SSA fees the Company pays to Nexstar do not exceed the estimated fair value of the benefits the Company’s stations receive. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and use assumptions that affect the reported amounts of assets and liabilities and the disclosure for contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The more significant estimates made by management include those relating to the allowance for doubtful accounts, valuation of assets acquired and liabilities assumed in business combinations, retransmission revenue recognized, trade and barter transactions, income taxes, the recoverability of goodwill, FCC licenses and other long-lived assets, the recoverability of broadcast rights and the useful lives of property and equipment and intangible assets. Actual results may vary from such estimates recorded. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company’s accounts receivable consist primarily of billings to cable and satellite carriers for compensation associated with retransmission consent agreements. The Company maintains an allowance for doubtful accounts when necessary for estimated losses resulting from the inability of customers to make required payments. Management evaluates the collectability of accounts receivable based on a combination of factors, including customer payment history, known customer circumstances, the overall aging of customer balances and trends. In circumstances where management is aware of a specific customer’s inability to meet its financial obligations, an allowance is recorded to reduce the receivable amount to an amount estimated to be collected. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash deposits are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits; however, the Company believes these deposits are maintained with financial institutions of reputable credit and are not subject to any unusual credit risk. A significant portion of the Company’s accounts receivable is due from cable or satellite operators. The Company does not require collateral from its customers, but maintains reserves for potential credit losses. Management believes that the allowance for doubtful accounts is adequate, but if the financial condition of the Company’s retransmission carriers were to deteriorate, additional allowances may be required. The Company has not experienced significant losses related to receivables from individual customers or by geographical area. |
Revenue Recognition | Revenue Recognition The Company’s revenue is primarily derived from the sale of television advertising by Nexstar under JSAs, retransmission compensation and other broadcast related revenues: • Revenue from Nexstar, representing a percentage of net advertising revenue derived from the sale of commercials on the Company’s stations, is recognized in the period during which the spots are broadcast. • Retransmission compensation is recognized based on the estimated number of subscribers over the contract period, based on historical levels and trends for individual providers. • Tower rent revenues are recognized in the period during which the services are provided. The Company barters advertising time for certain program material. These transactions, except those involving exchange of advertising time for certain network programming, are recorded at management’s estimate of the fair value of the advertising time exchanged, which approximates the fair value of the program material received. The fair value of advertising time exchanged is estimated by applying average historical advertising rates for specific time periods. Revenue from barter transactions is recognized as the related advertisement spots are broadcast. Barter expense is recognized at the time program broadcast rights assets are used. The Company recorded $4.0 million of barter revenue and barter expense for each of the years ended December 31, 2017, 2016 and 2015. Barter expense is included in amortization of broadcast rights in the Company’s Statements of Operations. The Company determines whether gross or net presentation is appropriate based on its relationship in the applicable transactions with its ultimate customer. |
Broadcast Rights and Broadcast Rights Payable | Broadcast Rights and Broadcast Rights Payable The Company records broadcast rights contracts as an asset and a liability when the following criteria are met: (1) the license period has begun, (2) the cost of each program is known or reasonably determinable, (3) the program material has been accepted in accordance with the license agreement, and (4) the program is produced and available for broadcast. Cash broadcast rights are initially recorded at the contract cost. Barter broadcast rights are recorded at fair value, which is estimated by using average historical advertising rates for the time periods where the programming will air. Broadcast rights are amortized on a straight-line basis over the period the programming airs. The current portion of broadcast rights represents those rights available for broadcast which will be amortized in the succeeding year. At least quarterly, the Company evaluates the net realizable value, calculated using the average historical advertising rates for the programs or the time periods the programming will air, of broadcast rights and adjusts amortization in that quarter for any deficiency calculated. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment is stated at cost or estimated fair value at the date of acquisition. The cost and related accumulated depreciation applicable to assets sold or retired are removed from the accounts and the gain or loss on disposition is recognized. Major renewals and betterments are capitalized and ordinary repairs and maintenance are charged to expense in the period incurred. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets (see Note 5). |
Intangible Assets, Net | Intangible Assets, Net Intangible assets consist primarily of goodwill, broadcast licenses (“FCC licenses”), network affiliation agreements and customer relationships arising from acquisitions. The Company accounts for acquired businesses using the acquisition method of accounting, which requires that purchase prices, including any contingent consideration, are measured at acquisition date fair values. These purchase prices are allocated to the assets acquired and liabilities assumed at estimated fair values at the date of acquisition using various valuation techniques, including discounted projected cash flows, the cost approach and the income approach. The fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates and estimated discount rates. The excess of the purchase price over the fair value of net assets acquired is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, the Company records adjustments related to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments are recognized in the Company’s Statements of Operations. The Company’s goodwill and FCC licenses are considered to be indefinite-lived intangible assets and are not amortized but are tested for impairment annually in the Company’s fourth quarter or whenever events or changes in circumstances indicate that such assets might be impaired. The use of an indefinite life for FCC licenses contemplates the Company’s historical ability to renew its licenses and that such renewals generally may be obtained indefinitely and at little cost. Therefore, cash flows derived from the FCC licenses are expected to continue indefinitely. Network affiliation agreements are subject to amortization computed on a straight-line basis over the estimated useful life of 15 years. The 15 year life assumes affiliation contracts will be renewed upon expiration. Changes in the likelihood of renewal could require a change in the useful life of such assets and cause an acceleration of amortization. The Company evaluates the remaining lives of its network affiliations whenever changes occur in the likelihood of affiliation contract renewals, and at least on an annual basis. Historically, the Company considered each television station market as a reporting unit for purposes of goodwill and FCC license impairment testing because management viewed, managed and evaluated its stations on a market basis. In the first quarter of 2017, because of the changes in the organizational structure at Nexstar that now focus on the overall broadcast business (Nexstar provides certain services to Mission stations under various local service agreements), and because Mission’s management sees its operations as one broadcast business, the Company shifted its operating segments from market level into broadcast business level. The Company first assesses the qualitative factors to determine the likelihood of the goodwill and FCC licenses being impaired. The qualitative analysis includes, but is not limited to, assessing the changes in macroeconomic conditions, regulatory environment, industry and market conditions, and the financial performance versus budget of the reporting units, as well as any other events or circumstances specific to the reporting units or the FCC licenses. If it is more likely than not that the fair value of a reporting unit’s goodwill or a station’s FCC license is greater than its carrying amount, no further testing will be required. Otherwise, the Company will apply the quantitative impairment test method. The quantitative impairment test for FCC licenses consists of a market-by-market comparison of the carrying amounts of FCC licenses with their fair value, using a discounted cash flow analysis. In prior years, the Company’s quantitative impairment test for goodwill utilized a two-step fair value approach. The first step of the goodwill impairment test was used to identify potential impairment by comparing the fair value of the reporting unit to its carrying amount. The fair value of a reporting unit was determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeded its carrying amount, goodwill was not considered impaired. If the carrying amount of the reporting unit exceeded its fair value, the second step of the goodwill impairment test was performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compared the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. The implied fair value of goodwill was determined by performing an assumed purchase price allocation, using the reporting unit fair value (as determined in Step 1) as the purchase price. If the carrying amount of goodwill exceeded the implied fair value, an impairment loss was recognized in an amount equal to that excess. In 2017, as discussed also under Recent Accounting Pronouncements, the Company early adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (ASU 2017-04), which simplified the measurement of goodwill impairment by removing the second step of the goodwill impairment test that required a hypothetical purchase price allocation. Under ASU 2017-04, the annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The quantitative impairment test for FCC licenses consists of a market-by-market comparison of the carrying amounts of FCC licenses with their fair value, using a discounted cash flow analysis. Determining the fair value of reporting units requires management to make a number of judgments about assumptions and estimates that are highly subjective and that are based on unobservable inputs. The actual results may differ from these assumptions and estimates, and it is possible that such differences could have a material impact on the Company’s Financial Statements. In addition to the various inputs (i.e., market growth, operating profit margins, discount rates) used to calculate the fair value of FCC licenses and reporting units, the Company evaluates the reasonableness of its assumptions by comparing the total fair value of all its reporting units to its total market capitalization; and by comparing the fair values of its reporting units and FCC licenses to recent market television station sale transactions. The Company tests finite-lived intangible assets and other long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. An impairment in the carrying amount of a finite-lived intangible asset is recognized when the expected discounted future operating cash flow derived from the operation to which the asset relates is less than its carrying value. The impairment test for finite-lived intangible assets consists of an asset (asset group) comparison of the carrying amount with their fair value, using a discounted cash flow analysis. |
Debt Financing Costs | Debt Financing Costs Debt financing costs represent direct costs incurred to obtain long-term financing and are amortized to interest expense over the term of the related debt using the effective interest method. Previously capitalized debt financing costs are expensed and included in loss on extinguishment of debt if the Company determines that there has been a substantial modification of the related debt. As of December 31, 2017 and 2016, debt financing costs related to term loans of $5.1 million and $2.1 million, respectively, were presented as a direct deduction from the carrying amount of debt. Debt financing costs related to the revolving credit facility of $0.1 million at each of December 31, 2017 and 2016 were included in other noncurrent assets. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net income and certain items that are excluded from net income and recorded as a separate component of shareholders’ deficit. During the years ended December 31, 2017, 2016 and 2015, the Company had no items of other comprehensive income and, therefore, comprehensive income does not differ from reported net income. |
Financial Instruments | Financial Instruments The Company utilizes the following categories to classify the valuation methodologies for fair values of financial assets and liabilities: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The carrying amount of cash and cash equivalents, accounts receivable, broadcast rights payable, accounts payable and accrued expenses approximates fair value due to their short-term nature. See Note 7 for fair value disclosures related to the Company’s debt. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and tax basis of assets and liabilities. A valuation allowance is applied against net deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. The Company recognizes interest and penalties relating to income taxes within income tax expense. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Standards Adopted In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (ASU 2017-04). The standard removes Step 2 of the goodwill impairment test, which requires a company to perform procedures to determine the fair value of a reporting unit’s assets and liabilities following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, a goodwill impairment charge will now be measured as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU No. 2017-04 will be effective for fiscal years beginning on January 1, 2020, including interim periods within those fiscal years, and early adoption as of January 1, 2017 is permitted. The Company has elected early adoption and, as the new guidance is required to be applied on a prospective basis, the Company used the simplified test in its annual fourth quarter 2017 testing. The adoption of this ASU did not have a material impact on the Company’s Financial Statements. New Accounting Standards Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which updates the accounting guidance on revenue recognition. This standard is intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, and improve disclosure requirements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations to clarify the implementation of guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies the implementation guidance in identifying performance obligations in a contract and determining whether an entity’s promise to grant a license provides a customer with either a right to use the entity’s intellectual property (which is satisfied at a point in time) or a right to access the entity’s intellectual property (which is satisfied over time). In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients. This update amends the guidance in the new revenue standard on collectability, noncash consideration, presentation of sales tax, and transition and is intended to address implementation issues that were raised by stakeholders and provide additional practical expedients. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which makes minor corrections or minor improvements that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. In September 2017, the FASB issued ASU No. 2017-13, Revenue recognition (Topic 605), Revenue from contracts with customers (Topic 606), Leases (Topic 840) and Leases (Topic 842), which allows certain public entities to use the private company effective dates for adoption of ASC 606 and supersedes certain SEC paragraphs in the Codification. In November 2017, the FASB issued ASU No. 2017-14, Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606), which aligns SEC guidance with the new revenue standard. The amendments are intended to address implementation issues that were raised by stakeholders and provide additional practical expedients to reduce the cost and complexity of applying the new revenue standard. The above updates are effective for interim and annual reporting periods beginning after December 15, 2017. The Company will adopt these updates effective January 1, 2018 under the modified retrospective approach. Based on our evaluation performed to date, we believe the cumulative adjustment as of January 1, 2018 that will result from this adoption will not be material. The Company will no longer recognize barter revenue, barter expense, barter assets and liabilities resulting from the exchange of advertising time for certain program material. Barter revenue and barter expense was $4.0 million for each year ended 2017, 2016 and 2015. As of December 31, 2017, the current barter assets (and the related current barter liabilities) were $0.6 million, and the noncurrent barter assets (and the related noncurrent barter liabilities) were $0.5 million. As of December 31, 2016, the current barter assets (and the related current barter liabilities) were $0.8 million, and the noncurrent barter assets (and the related noncurrent barter liabilities) were $0.7 million. Mission’s revenue from Nexstar arising from television spot advertising that is sold and collected by Nexstar and paid to Mission is short-term in nature. This revenue source comprises approximately 34% and 41% of the reported net revenue in 2017 and 2016. We expect revenue will continue to be recognized as commercials are aired. We expect that revenue earned under retransmission agreements will be recognized under the licensing of intellectual property guidance in the standard, which will not result in a material change to our current revenue recognition. This revenue source comprised approximately 61% and 55% of the reported net revenue in 2017 and 2016, respectively. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). The new guidance requires the recording of assets and liabilities arising from leases on the balance sheet accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. The new guidance is expected to provide transparency of information and comparability among organizations. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the provisions of the accounting standard update. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326).” The standard requires entities to estimate loss of financial assets measured at amortized cost, including trade receivables, debt securities and loans, using an expected credit loss model. The expected credit loss differs from the previous incurred losses model primarily in that the loss recognition threshold of “probable” has been eliminated and that expected loss should consider reasonable and supportable forecasts in addition to the previously considered past events and current conditions. Additionally, the guidance requires additional disclosures related to the further disaggregation of information related to the credit quality of financial assets by year of the asset’s origination for as many as five years. Entities must apply the standard provision as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU 2016-13 on its financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) (ASU 2016-15). The amendments in ASU 2016-15 address eight specific cash flow issues and apply to all entities that are required to present a statement of cash flows under FASB Accounting Standards Codification 230, Statement of Cash Flows. The amendments in ASU 2016-15 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted, including adoption during an interim period. The Company does not expect the implementation of this standard to have a material impact on its statements of cash flows. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01). ASU 2017-01 provides clarification on the definition of a business and adds guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. To be considered a business under the new guidance, it must include an input and a substantive process that together significantly contribute to the ability to create output. The amendment removes the evaluation of whether a market participant could replace missing elements. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and will be applied prospectively. The potential impact of this new guidance will be assessed for future acquisitions or dispositions, but it is not expected to have a material impact on the Company’s financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Parker Broadcasting of Colorado, LLC [Member] | |
Schedule of Assets Acquired and Liabilities Assumed | The fair values of the assets acquired and liabilities assumed are as follows (in thousands): FCC licenses $ 1,539 Network affiliation agreements 1,743 Other intangible assets 20 Goodwill 698 Total assets acquired $ 4,000 |
Local Service Agreements with21
Local Service Agreements with Nexstar (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Local Service Agreements [Abstract] | |
Local Service Agreements in Effect with Nexstar | Under the local service agreements, Nexstar receives substantially all of the Company’s available cash, after satisfaction of operating costs and debt obligations. The Company anticipates that Nexstar will continue to receive substantially all of its available cash, after satisfaction of operating costs and debt obligations. In compliance with FCC regulations for both the Company and Nexstar, Mission maintains complete responsibility for and control over programming, finances, personnel and operations of its stations. Mission had the following local service agreements in effect with Nexstar as of December 31, 2017: Station Market Type of Agreement Expiration Consideration WFXP Erie, PA TBA 8/16/26 Monthly payments received from Nexstar KHMT Billings, MT TBA 12/14/25 Monthly payments received from Nexstar KFQX Grand Junction, CO TBA 6/13/22 Monthly payments received from Nexstar KJTL/KJBO-LP Wichita Falls, TX-Lawton, OK SSA JSA 6/30/25 5/31/19 $150 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WYOU Wilkes Barre-Scranton, PA SSA JSA 6/30/25 9/30/24 $771 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KODE Joplin, MO-Pittsburg, KS SSA JSA 6/30/25 9/30/24 $279 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KRBC Abilene-Sweetwater, TX SSA JSA 6/30/25 6/30/23 $204 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KSAN San Angelo, TX SSA JSA 6/30/25 5/31/24 $171 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WAWV Terre Haute, IN SSA JSA 6/30/25 5/8/23 $67 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KCIT/KCPN-LP Amarillo, TX SSA JSA 6/30/25 4/30/19 $200 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KAMC Lubbock, TX SSA JSA 6/30/25 2/15/19 $275 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KOLR Springfield, MO SSA JSA 6/30/25 2/15/19 $642 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WUTR Utica, NY SSA JSA 6/30/25 3/31/24 $83 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WTVO Rockford, IL SSA JSA 6/30/25 10/31/24 $292 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KTVE Monroe, LA-El Dorado, AR SSA JSA 6/30/25 1/16/28 $325 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WTVW Evansville, IN SSA JSA 6/30/25 11/30/19 $175 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KLRT/KASN Little Rock-Pine Bluff, AR SSA JSA 6/30/25 1/1/21 $525 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WVNY Burlington-Plattsburgh, VT SSA JSA 6/30/25 3/1/21 $258 thousand per month paid to Nexstar 70% of net revenue received from Nexstar |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following, as of December 31 (dollars in thousands): Estimated useful life, in years 2017 2016 Buildings and improvements 39 $ 8,385 $ 8,330 Land N/A 1,632 1,687 Leasehold improvements term of lease 70 70 Studio and transmission equipment 5-15 38,697 40,542 Computer equipment 3-5 544 554 Furniture and fixtures 7 832 832 Vehicles 5 734 735 Construction in progress N/A 989 36 51,883 52,786 Less: accumulated depreciation (33,429 ) (33,222 ) Property and equipment, net $ 18,454 $ 19,564 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets Subject to Amortization | Intangible assets subject to amortization consisted of the following, as of December 31 (dollars in thousands): Estimated December 31, 2017 December 31, 2016 useful life, Accumulated Accumulated in years Gross Amortization Net Gross Amortization Net Network affiliation agreements 15 $ 86,248 $ (71,150 ) $ 15,098 $ 84,505 $ (68,885 ) $ 15,620 Other definite-lived intangible assets 1-15 15,681 (14,938 ) 743 15,661 (14,811 ) 850 Other intangible assets $ 101,929 $ (86,088 ) $ 15,841 $ 100,166 $ (83,696 ) $ 16,470 |
Estimated Future Amortization Expense of Definite-Lived Intangible Assets | The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years and thereafter for definite-lived intangible assets as of December 31, 2017 (in thousands): 2018 2,129 2019 1,919 2020 1,518 2021 1,517 2022 1,517 Thereafter 7,241 $ 15,841 |
Goodwill and FCC Licenses | The carrying amounts of goodwill and FCC licenses for the years ended December 31, 2017 and 2016 are as follows (in thousands): Goodwill FCC Licenses Accumulated Accumulated Gross Impairment Net Gross Impairment Net Balances as of December 31, 2016 $ 34,039 $ (1,550 ) $ 32,489 $ 52,260 $ (10,697 ) $ 41,563 Acquisitions (See Note 3) 698 - 698 1,539 - 1,539 Balances as of December 31, 2017 $ 34,737 $ (1,550 ) $ 33,187 $ 53,799 $ (10,697 ) $ 43,102 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Long-term debt consisted of the following, as of December 31 (in thousands): 2017 2016 Term loans, net of financing costs and discount of $5,099 and $2,126, respectively $ 225,742 $ 223,765 Less: current portion (2,314 ) (1,160 ) $ 223,428 $ 222,605 |
Fair Value of Debt | The aggregate carrying amounts and estimated fair values of the Company’s debt were as follows, as of December 31 (in thousands): 2017 2016 Carrying Fair Carrying Fair Amount Value Amount Value Term loans $ 225,742 $ 231,580 $ 223,765 $ 225,646 (1) The fair value of senior secured credit facilities is computed based on borrowing rates currently available to Mission for bank loans with similar terms and average maturities. These fair value measurements are considered Level 3, as significant inputs to the fair value calculation are unobservable in the market. |
Maturities of Debt | The maturities of the Company’s debt, excluding the unamortized discount and certain debt financing costs, as of December 31, 2017 are summarized as follows (in thousands): 2018 2,314 2019 2,314 2020 2,314 2021 2,314 2022 2,314 Thereafter 219,271 $ 230,841 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | The income tax expense (benefit) consisted of the following components for the years ended December 31 (in thousands): 2017 2016 2015 Current tax (benefit) expense: Federal $ (1,355 ) $ 545 $ 488 State 304 760 692 (1,051 ) 1,305 1,180 Deferred tax expense: Federal 4,140 9,844 9,635 State 311 1,188 1,357 4,451 11,032 10,992 Income tax expense $ 3,400 $ 12,337 $ 12,172 |
Schedule of Effective Income Tax Expense Reconciliation | The income tax expense (benefit) differs from the amount computed by applying the statutory federal income tax rate of 35% to income (loss) before income taxes. The sources and tax effects of the differences were as follows, for the years ended December 31 (in thousands): 2017 2016 2015 Income tax expense at 35% statutory federal rate $ 3,162 $ 11,131 $ 10,595 State and local taxes, net of federal benefit 410 1,265 1,154 Impact of federal tax rate reduction on deferred taxes 1,220 - - Impact of federal tax rate reduction on uncertain tax positions (1,471 ) - - Other 79 (59 ) 423 Income tax expense (benefit) $ 3,400 $ 12,337 $ 12,172 |
Schedule of Components of Net Deferred Tax Asset | The components of the net deferred tax asset were as follows, as of December 31 (in thousands): 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 11,726 $ 21,456 Rent 601 1,035 Other 2,621 2,468 Total deferred tax assets 14,948 24,959 Deferred tax liabilities: Property and equipment (2,141 ) (3,511 ) Goodwill (4,300 ) (5,648 ) Other intangible assets (901 ) (1,601 ) FCC licenses (6,098 ) (8,240 ) Total deferred tax liabilities (13,440 ) (19,000 ) Net deferred tax assets $ 1,508 $ 5,959 |
Schedule of Reconciliation of Gross Liability for Uncertain Tax Positions | A reconciliation of the beginning and ending balances of the gross liability for uncertain tax positions is as follows (in thousands): 2017 2016 2015 Uncertain tax position liability at the beginning of the year $ 3,677 $ 3,677 $ 3,677 Decreases related to tax positions taken during prior periods (1,471 ) - - Uncertain tax position liability at the end of the year $ 2,206 $ 3,677 $ 3,677 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Payments for Un-booked Broadcast Rights Commitments | Future minimum payments for license agreements for which the license period has not commenced and no asset or liability has been recorded are as follows as of December 31, 2017 (in thousands): 2018 $ 998 2019 1,030 2020 145 2021 77 2022 17 Thereafter - $ 2,267 |
Future Minimum Lease Payments under Operating Leases | Future minimum lease payments under these operating leases are as follows as of December 31, 2017 (in thousands): 2018 $ 2,119 2019 2,212 2020 2,298 2021 1,394 2022 864 Thereafter 6,571 $ 15,458 |
Organization and Business Ope27
Organization and Business Operations - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017TelevisionStationSegmentTelevisionMarket | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of television stations owned and operated | TelevisionStation | 19 |
Number of reportable segments | Segment | 1 |
Number of television markets | TelevisionMarket | 18 |
Maximum consolidated first lien net leverage ratio | 4.50 to 1.00 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Additional Information (Details) | Nov. 29, 2011USD ($) | Dec. 31, 2017USD ($)ReportingUnit | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Revenue Recognition [Abstract] | ||||
Advertising barter transactions, advertising barter revenue | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | |
Advertising barter transactions, advertising barter expense | 4,000,000 | 4,000,000 | 4,000,000 | |
Barter revenue | 4,000,000 | 4,000,000 | 4,000,000 | |
Barter expense | 4,000,000 | 4,000,000 | $ 4,000,000 | |
Current barter assets | 600,000 | 800,000 | ||
Current barter liabilities | 600,000 | 800,000 | ||
Noncurrent barter assets | 500,000 | 700,000 | ||
Noncurrent barter liabilities | $ 500,000 | $ 700,000 | ||
Retransmission Agreements [Member] | ||||
Revenue Recognition [Abstract] | ||||
Percentage of revenue | 61.00% | 55.00% | ||
Revenue from Nexstar [Member] | Television Spot Advertising Contracts [Member] | ||||
Revenue Recognition [Abstract] | ||||
Percentage of revenue | 34.00% | 41.00% | ||
Revolving Credit Facility [Member] | ||||
Debt Financing Costs [Abstract] | ||||
Debt financing costs | $ 100,000 | $ 100,000 | ||
Notes Payable to Banks [Member] | Term Loans [Member] | ||||
Debt Financing Costs [Abstract] | ||||
Debt financing costs | $ 5,100,000 | $ 2,100,000 | ||
Broadcasting [Member] | ||||
Intangible Assets [Abstract] | ||||
Number of reporting units | ReportingUnit | 1 | |||
Network Affiliation Agreements [Member] | ||||
Intangible Assets [Abstract] | ||||
Network affiliation agreements useful life | 15 years | 15 years | 15 years | |
Option Agreement To Sell The Assets Of Mission Stations To Nexstar [Member] | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||
Minimum purchase price Mission agreed to sell its capital stock to Nexstar | $ 100,000 | |||
Minimum [Member] | ||||
Local Service Agreements [Abstract] | ||||
Terms on local service agreements | 8 years | |||
Minimum [Member] | Option Agreement To Sell The Assets Of Mission Stations To Nexstar [Member] | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||
Options expiration date year | 2,018 | |||
Maximum [Member] | ||||
Local Service Agreements [Abstract] | ||||
Terms on local service agreements | 10 years | |||
Maximum [Member] | Option Agreement To Sell The Assets Of Mission Stations To Nexstar [Member] | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||||
Options expiration date year | 2,027 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) | Mar. 31, 2017 | Jun. 13, 2014 | May 27, 2014 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Network Affiliation Agreements [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets useful life | 15 years | 15 years | ||||
Parker Broadcasting of Colorado, LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price of stations to be acquired | $ 4,000,000 | |||||
Deposit paid upon signing an agreement to acquire a business | $ 3,200,000 | |||||
Cash paid in business acquisition | $ 800,000 | |||||
Parker Broadcasting of Colorado, LLC [Member] | Network Affiliation Agreements [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets useful life | 15 years |
Acquisitions - Fair Values of A
Acquisitions - Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 33,187 | $ 32,489 | |
Parker Broadcasting of Colorado, LLC [Member] | |||
Business Acquisition [Line Items] | |||
FCC licenses | $ 1,539 | ||
Goodwill | 698 | ||
Total assets acquired | 4,000 | ||
Parker Broadcasting of Colorado, LLC [Member] | Network Affiliation Agreements [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | 1,743 | ||
Parker Broadcasting of Colorado, LLC [Member] | Other Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets | $ 20 |
Local Service Agreements with31
Local Service Agreements with Nexstar - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Term of agreements renewal periods | 8 years |
Maximum [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Term of agreements renewal periods | 10 years |
Local Service Agreements with32
Local Service Agreements with Nexstar - Local Service Agreements in Effect with Nexstar (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
WFXP [Member] | Time Brokerage Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WFXP |
Market | Erie, PA |
Type of Agreement | TBA |
Expiration date | Aug. 16, 2026 |
Consideration received for local servicing agreement | Monthly payments received from Nexstar |
KHMT [Member] | Time Brokerage Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KHMT |
Market | Billings, MT |
Type of Agreement | TBA |
Expiration date | Dec. 14, 2025 |
Consideration received for local servicing agreement | Monthly payments received from Nexstar |
KFQX [Member] | Time Brokerage Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KFQX |
Market | Grand Junction, CO |
Type of Agreement | TBA |
Expiration date | Jun. 13, 2022 |
Consideration received for local servicing agreement | Monthly payments received from Nexstar |
KJTL/KJBO-LP [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KJTL/KJBO-LP |
Market | Wichita Falls, TX-Lawton, OK |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 150 |
KJTL/KJBO-LP [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KJTL/KJBO-LP |
Market | Wichita Falls, TX-Lawton, OK |
Type of Agreement | JSA |
Expiration date | May 31, 2019 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
WYOU [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WYOU |
Market | Wilkes Barre-Scranton, PA |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 771 |
WYOU [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WYOU |
Market | Wilkes Barre-Scranton, PA |
Type of Agreement | JSA |
Expiration date | Sep. 30, 2024 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
KODE [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KODE |
Market | Joplin, MO-Pittsburg, KS |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 279 |
KODE [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KODE |
Market | Joplin, MO-Pittsburg, KS |
Type of Agreement | JSA |
Expiration date | Sep. 30, 2024 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
KRBC [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KRBC |
Market | Abilene-Sweetwater, TX |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 204 |
KRBC [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KRBC |
Market | Abilene-Sweetwater, TX |
Type of Agreement | JSA |
Expiration date | Jun. 30, 2023 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
KSAN [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KSAN |
Market | San Angelo, TX |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 171 |
KSAN [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KSAN |
Market | San Angelo, TX |
Type of Agreement | JSA |
Expiration date | May 31, 2024 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
WAWV [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WAWV |
Market | Terre Haute, IN |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 67 |
WAWV [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WAWV |
Market | Terre Haute, IN |
Type of Agreement | JSA |
Expiration date | May 8, 2023 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
KCIT/KCPN-LP [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KCIT/KCPN-LP |
Market | Amarillo, TX |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 200 |
KCIT/KCPN-LP [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KCIT/KCPN-LP |
Market | Amarillo, TX |
Type of Agreement | JSA |
Expiration date | Apr. 30, 2019 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
KAMC [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KAMC |
Market | Lubbock, TX |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 275 |
KAMC [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KAMC |
Market | Lubbock, TX |
Type of Agreement | JSA |
Expiration date | Feb. 15, 2019 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
KOLR [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KOLR |
Market | Springfield, MO |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 642 |
KOLR [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KOLR |
Market | Springfield, MO |
Type of Agreement | JSA |
Expiration date | Feb. 15, 2019 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
WUTR [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WUTR |
Market | Utica, NY |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 83 |
WUTR [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WUTR |
Market | Utica, NY |
Type of Agreement | JSA |
Expiration date | Mar. 31, 2024 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
WTVO [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WTVO |
Market | Rockford, IL |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 292 |
WTVO [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WTVO |
Market | Rockford, IL |
Type of Agreement | JSA |
Expiration date | Oct. 31, 2024 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
KTVE [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KTVE |
Market | Monroe, LA-El Dorado, AR |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 325 |
KTVE [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KTVE |
Market | Monroe, LA-El Dorado, AR |
Type of Agreement | JSA |
Expiration date | Jan. 16, 2028 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
WTVW [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WTVW |
Market | Evansville, IN |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 175 |
WTVW [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WTVW |
Market | Evansville, IN |
Type of Agreement | JSA |
Expiration date | Nov. 30, 2019 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
KLRT/KASN [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KLRT/KASN |
Market | Little Rock-Pine Bluff, AR |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 525 |
KLRT/KASN [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | KLRT/KASN |
Market | Little Rock-Pine Bluff, AR |
Type of Agreement | JSA |
Expiration date | Jan. 1, 2021 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
WVNY [Member] | Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WVNY |
Market | Burlington-Plattsburgh, VT |
Type of Agreement | SSA |
Expiration date | Jun. 30, 2025 |
Monthly consideration paid to Nexstar | $ 258 |
WVNY [Member] | Joint Sales Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Station | WVNY |
Market | Burlington-Plattsburgh, VT |
Type of Agreement | JSA |
Expiration date | Mar. 1, 2021 |
Percentage of station's net revenue collected per month received from Nexstar (in hundredths) | 70.00% |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 51,883 | $ 52,786 |
Less: accumulated depreciation | (33,429) | (33,222) |
Property and equipment, net | $ 18,454 | $ 19,564 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life, in years | 39 years | 39 years |
Property and equipment, gross | $ 8,385 | $ 8,330 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,632 | 1,687 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life, in years | term of lease | |
Property and equipment, gross | $ 70 | 70 |
Studio and Transmission Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 38,697 | $ 40,542 |
Studio and Transmission Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life, in years | 5 years | 5 years |
Studio and Transmission Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life, in years | 15 years | 15 years |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 544 | $ 554 |
Computer Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life, in years | 3 years | 3 years |
Computer Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life, in years | 5 years | 5 years |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life, in years | 7 years | 7 years |
Property and equipment, gross | $ 832 | $ 832 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life, in years | 5 years | 5 years |
Property and equipment, gross | $ 734 | $ 735 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 989 | $ 36 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - Telecommunications Tower Facilities [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Lease expiry date | 2021-05 | |
Other Noncurrent Liabilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Deferred gain on sale of assets | $ 0.4 | $ 0.6 |
Other Current Liabilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Deferred gain on sale of assets | $ 0.2 | $ 0.2 |
Intangible Assets and Goodwil35
Intangible Assets and Goodwill - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 101,929 | $ 100,166 |
Accumulated Amortization | (86,088) | (83,696) |
Net | $ 15,841 | $ 16,470 |
Network Affiliation Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Network affiliation agreements useful life | 15 years | 15 years |
Gross | $ 86,248 | $ 84,505 |
Accumulated Amortization | (71,150) | (68,885) |
Net | $ 15,098 | 15,620 |
Network Affiliation Agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Network affiliation agreements useful life | 12 years | |
Network Affiliation Agreements [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Network affiliation agreements useful life | 20 years | |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 15,681 | 15,661 |
Accumulated Amortization | (14,938) | (14,811) |
Net | $ 743 | $ 850 |
Other Intangible Assets [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Network affiliation agreements useful life | 1 year | 1 year |
Other Intangible Assets [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Network affiliation agreements useful life | 15 years | 15 years |
Intangible Assets and Goodwil36
Intangible Assets and Goodwill - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($)ReportingUnit | Dec. 31, 2016 | |
FCC licenses [Member] | Quantitative Impairment Test Passed [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment charges | $ 0 | ||
Broadcasting [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Number of reporting units | ReportingUnit | 1 | ||
Broadcasting [Member] | Quantitative Impairment Test Passed [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment charges | $ 0 | $ 0 | |
Network Affiliation Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Network affiliation agreements useful life | 15 years | 15 years | |
Network Affiliation Agreements [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Network affiliation agreements useful life | 12 years | ||
Network Affiliation Agreements [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Network affiliation agreements useful life | 20 years |
Intangible Assets and Goodwil37
Intangible Assets and Goodwill - Estimated Amortization Expense of Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | ||
2,018 | $ 2,129 | |
2,019 | 1,919 | |
2,020 | 1,518 | |
2,021 | 1,517 | |
2,022 | 1,517 | |
Thereafter | 7,241 | |
Net | $ 15,841 | $ 16,470 |
Intangible Assets and Goodwil38
Intangible Assets and Goodwill - Goodwill and FCC Licenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Abstract] | ||
Goodwill, Gross | $ 34,737 | $ 34,039 |
Goodwill, Accumulated Impairment | (1,550) | (1,550) |
Goodwill, Net | 33,187 | 32,489 |
Goodwill Acquisitions, Gross | 698 | |
Goodwill Acquisitions, Net | 698 | |
FCC Licenses [Abstract] | ||
FCC Licenses, Gross | 53,799 | 52,260 |
FCC Licenses, Accumulated Impairment | (10,697) | (10,697) |
FCC Licenses, Net | 43,102 | $ 41,563 |
FCC Licenses Acquisitions, Gross | 1,539 | |
FCC Licenses Acquisitions, Net | $ 1,539 |
Debt - Long Term Debt (Details)
Debt - Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Long term Debt [Abstract] | ||
Less: current portion | $ (2,314) | $ (1,160) |
Debt, noncurrent | 223,428 | 222,605 |
Notes Payable to Banks [Member] | Term Loans [Member] | ||
Long term Debt [Abstract] | ||
Long term Debt | 225,742 | 223,765 |
Less: current portion | (2,314) | (1,160) |
Debt, noncurrent | $ 223,428 | $ 222,605 |
Debt - Long Term Debt (Parenthe
Debt - Long Term Debt (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Notes Payable to Banks [Member] | Term Loans [Member] | ||
Long term Debt [Abstract] | ||
Debt financing costs and discount | $ 5,099 | $ 2,126 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Jul. 19, 2017 | Jan. 17, 2017 | Jan. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||||
Repayments of long-term debt | $ 227,051,000 | $ 2,335,000 | $ 7,337,000 | |||
Loss on extinguishment of debt | $ 2,100,000 | $ 2,133,000 | ||||
Financial Guarantee of Nexstar 5.625% Senior Unsecured Notes Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Aug. 1, 2024 | |||||
Guarantees of Nexstar Debt [Abstract] | ||||||
Maximum guarantee exposure | $ 900,000,000 | |||||
Interest rate | 5.625% | |||||
Current exposure under the guarantee | $ 886,500,000 | |||||
Guarantee of Nexstar 6.125% Notes Due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Feb. 15, 2022 | |||||
Guarantees of Nexstar Debt [Abstract] | ||||||
Maximum guarantee exposure | $ 275,000,000 | |||||
Interest rate | 6.125% | |||||
Current exposure under the guarantee | $ 273,000,000 | |||||
Guarantee of Nexstar Senior Secured Credit Facility [Member] | ||||||
Guarantees of Nexstar Debt [Abstract] | ||||||
Maximum guarantee exposure | $ 2,662,000,000 | |||||
Guarantee of Nexstar Senior Secured Credit Facility Term Loan B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Jan. 17, 2024 | |||||
Guarantees of Nexstar Debt [Abstract] | ||||||
Current exposure under the guarantee | $ 1,782,000,000 | |||||
Guarantee of Nexstar Senior Secured Credit Facility Term Loan A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Jul. 19, 2022 | |||||
Guarantees of Nexstar Debt [Abstract] | ||||||
Current exposure under the guarantee | $ 711,000,000 | |||||
Revolving Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date | Jul. 19, 2022 | Jan. 17, 2022 | ||||
Revolving credit facilities, total commitments | $ 3,000,000 | |||||
Revolving credit facilities, amount drawn | $ 0 | |||||
Debt instrument reduction in applicable margin portion of interest rates | 0.50% | |||||
Long Term Debt | $ 0 | $ 0 | ||||
Guarantees of Nexstar Debt [Abstract] | ||||||
Interest rate during the period (in hundredths) | 3.56% | 2.77% | ||||
Commitment fees | 0.50% | 0.50% | ||||
Available borrowing capacity | $ 3,000,000 | |||||
Term Loans [Member] | Notes Payable to Banks [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument principal amount at issuance | $ 232,000,000 | |||||
Debt instrument, issuance percentage | 99.50% | |||||
Maturity date | Jan. 17, 2024 | |||||
Repayments of long-term debt | $ 225,900,000 | |||||
Debt instrument reduction in applicable margin portion of interest rates | 0.50% | |||||
Long Term Debt | $ 225,742,000 | $ 223,765,000 | ||||
Term loan periodic payment percentage (in hundredths) | 0.25% | |||||
Payment of contractual maturities under the term loans | $ 1,200,000 | |||||
Guarantees of Nexstar Debt [Abstract] | ||||||
Frequency of periodic interest payments | quarterly | |||||
Interest rate during the period (in hundredths) | 4.06% | 3.75% |
Debt - Fair Value of Debt (Deta
Debt - Fair Value of Debt (Details) - Term Loans [Member] - Notes Payable to Banks [Member] - Level 3 [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Amount [Member] | ||
Fair Value of debt [Line Items] | ||
Carrying and Fair Value of Debt | $ 225,742 | $ 223,765 |
Fair Value [Member] | ||
Fair Value of debt [Line Items] | ||
Carrying and Fair Value of Debt | $ 231,580 | $ 225,646 |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Maturities [Abstract] | |
2,018 | $ 2,314 |
2,019 | 2,314 |
2,020 | 2,314 |
2,021 | 2,314 |
2,022 | 2,314 |
Thereafter | 219,271 |
Debt | $ 230,841 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2017Stockholder$ / sharesshares | Dec. 31, 2016Stockholder$ / sharesshares | |
Equity [Abstract] | ||
Number of shareholders | Stockholder | 2 | 2 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, shares issued (in shares) | 1,000 | 1,000 |
Common stock, shares outstanding (in shares) | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 |
Common stock voting rights, description | Each share of common stock is entitled to one vote. |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax (benefit) expense: | |||
Federal | $ (1,355) | $ 545 | $ 488 |
State | 304 | 760 | 692 |
Current tax (benefit) expense | (1,051) | 1,305 | 1,180 |
Deferred tax expense: | |||
Federal | 4,140 | 9,844 | 9,635 |
State | 311 | 1,188 | 1,357 |
Deferred tax expense | 4,451 | 11,032 | 10,992 |
Income tax expense | $ 3,400 | $ 12,337 | $ 12,172 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||||
Statutory federal income tax rate (in hundredths) | 35.00% | 35.00% | 35.00% | ||
Percentage of effect for immediate expensing on costs of qualified property due to impact of U.S. tax rate | 100.00% | ||||
Description for percentage of effect for immediate expensing on costs of qualified property due to impact of U.S. tax rate | The Act also provides for immediate expensing of 100% of the costs of qualified property that are incurred and placed in service during the period from September 27, 2017 to December 31, 2022. Beginning January 1, 2023, the immediate expensing provision is phased down by 20% per year until it is completely phased out as of January 1, 2027. | ||||
Provisional estimated income tax expense related to remeasurement of net deferred tax asset | $ 1,220,000 | ||||
Income tax benefit related to remeasurement of uncertain tax positions | (1,471,000) | ||||
Gross unrecognized tax benefits | 2,206,000 | $ 3,677,000 | $ 3,677,000 | $ 3,677,000 | |
Accrued interest on unrecognized tax benefits | 0 | $ 0 | $ 0 | ||
Federal [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | $ 53,800,000 | ||||
Operating loss carryforwards expiration period | 2,033 | ||||
State [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | $ 5,700,000 | ||||
SAB 118 [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax cuts and jobs act of 2017, maximum measurement period | 1 year | ||||
Provisional estimated income tax expense related to remeasurement of net deferred tax asset | $ 1,200,000 | ||||
Income tax benefit related to remeasurement of uncertain tax positions | $ (1,500,000) | ||||
January 1, 2023 to January 1, 2027 [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Percentage of effect for immediate expensing provision phase down per year | 20.00% | ||||
Scenario, Plan [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Statutory federal income tax rate (in hundredths) | 21.00% |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective income tax expense reconciliation [Abstract] | |||
Income tax expense at 35% statutory federal rate | $ 3,162 | $ 11,131 | $ 10,595 |
State and local taxes, net of federal benefit | 410 | 1,265 | 1,154 |
Impact of federal tax rate reduction on deferred taxes | 1,220 | ||
Impact of federal tax rate reduction on uncertain tax positions | (1,471) | ||
Other | 79 | (59) | 423 |
Income tax expense | $ 3,400 | $ 12,337 | $ 12,172 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 11,726 | $ 21,456 |
Rent | 601 | 1,035 |
Other | 2,621 | 2,468 |
Total deferred tax assets | 14,948 | 24,959 |
Deferred tax liabilities: | ||
Property and equipment | (2,141) | (3,511) |
Goodwill | (4,300) | (5,648) |
Other intangible assets | (901) | (1,601) |
FCC licenses | (6,098) | (8,240) |
Total deferred tax liabilities | (13,440) | (19,000) |
Net deferred tax assets | $ 1,508 | $ 5,959 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Gross Liability for Uncertain Tax Positions (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |
Uncertain tax position liability at the beginning of the year | $ 3,677 |
Decreases related to tax positions taken during prior periods | (1,471) |
Uncertain tax position liability at the end of the year | $ 2,206 |
FCC Regulatory Matters - Additi
FCC Regulatory Matters - Additional Information (Details) $ in Millions | Oct. 17, 2017USD ($) | Dec. 31, 2017USD ($)TelevisionStation |
Risks And Uncertainties [Abstract] | ||
Maximum percentage of television household reach | 39.00% | |
Percentage reach of ultra high frequency station | 50.00% | |
Date of abolishing the UHF discount | Aug. 24, 2016 | |
Effective date of reinstating the UHF discount | Jun. 15, 2017 | |
Number of full power stations repacked | TelevisionStation | 7 | |
Maximum amount allocated by Congress for reimbursement of repack costs | $ 1,750 | |
Estimated reimbursable costs | $ 1,860 | |
Excess amount of reimbursable costs over the amount authorized by Congress | $ 100 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Payments for Un-booked Broadcast Rights Commitments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Broadcast Rights Commitments [Abstract] | |
2,018 | $ 998 |
2,019 | 1,030 |
2,020 | 145 |
2,021 | 77 |
2,022 | 17 |
Future minimum payment due for license agreement, total | $ 2,267 |
Commitments and Contingencies52
Commitments and Contingencies - Additional Information (Details) - USD ($) | Mar. 16, 2018 | Mar. 01, 2018 | Feb. 16, 2018 | Feb. 01, 2018 | Jan. 16, 2018 | Nov. 29, 2011 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Operating Leases [Abstract] | |||||||||
Operating lease rent expense | $ 1,900,000 | $ 1,900,000 | $ 1,900,000 | ||||||
Operating lease arrangement | The Company leases office space, vehicles, towers, antenna sites, studio and other operating equipment under noncancelable operating lease arrangements expiring through April 2032. | ||||||||
Option Agreement to Sell Mission's Capital Stock to Nexstar [Member] | |||||||||
Other Commitments [Abstract] | |||||||||
Minimum purchase price Mission agreed to sell its capital stock to Nexstar | $ 100,000 | ||||||||
Option Agreement To Sell The Assets Of Mission Stations To Nexstar [Member] | |||||||||
Other Commitments [Abstract] | |||||||||
Minimum purchase price Mission agreed to sell its capital stock to Nexstar | $ 100,000 | ||||||||
Minimum [Member] | Option Agreement To Sell The Assets Of Mission Stations To Nexstar [Member] | |||||||||
Other Commitments [Abstract] | |||||||||
Options expiration date year | 2,018 | ||||||||
Maximum [Member] | Option Agreement To Sell The Assets Of Mission Stations To Nexstar [Member] | |||||||||
Other Commitments [Abstract] | |||||||||
Options expiration date year | 2,027 | ||||||||
Guarantee of Nexstar Senior Secured Credit Facility [Member] | |||||||||
Guarantees of Nexstar Debt [Abstract] | |||||||||
Maximum guarantee exposure | $ 2,662,000,000 | ||||||||
Guarantee of Nexstar Senior Secured Credit Facility Term Loan B [Member] | |||||||||
Guarantees of Nexstar Debt [Abstract] | |||||||||
Current exposure under the guarantee | $ 1,782,000,000 | ||||||||
Maturity date | Jan. 17, 2024 | ||||||||
Guarantee of Nexstar Senior Secured Credit Facility Term Loan B [Member] | Subsequent Event [Member] | |||||||||
Guarantees of Nexstar Debt [Abstract] | |||||||||
Outstanding principal balance prepaid | $ 20,000,000 | $ 20,000,000 | |||||||
Guarantee of Nexstar 6.125% Notes Due 2022 [Member] | |||||||||
Guarantees of Nexstar Debt [Abstract] | |||||||||
Maximum guarantee exposure | $ 275,000,000 | ||||||||
Current exposure under the guarantee | $ 273,000,000 | ||||||||
Interest rate | 6.125% | ||||||||
Maturity date | Feb. 15, 2022 | ||||||||
Financial Guarantee of Nexstar 5.625% Senior Unsecured Notes Due 2024 [Member] | |||||||||
Guarantees of Nexstar Debt [Abstract] | |||||||||
Maximum guarantee exposure | $ 900,000,000 | ||||||||
Current exposure under the guarantee | $ 886,500,000 | ||||||||
Interest rate | 5.625% | ||||||||
Maturity date | Aug. 1, 2024 | ||||||||
Guarantee of Nexstar Senior Secured Credit Facility Term Loan A [Member] | |||||||||
Guarantees of Nexstar Debt [Abstract] | |||||||||
Current exposure under the guarantee | $ 711,000,000 | ||||||||
Maturity date | Jul. 19, 2022 | ||||||||
Nexstar Revolving Loans [Member] | |||||||||
Guarantees of Nexstar Debt [Abstract] | |||||||||
Maturity date | Jul. 19, 2022 | ||||||||
Revolving credit facilities, total commitments | $ 169,000,000 | ||||||||
Revolving credit facilities, outstanding | $ 0 | ||||||||
Guarantee Nexstar Senior Secured Credit Facility Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||||
Guarantees of Nexstar Debt [Abstract] | |||||||||
Outstanding principal balance repaid | $ 4,000,000 | $ 20,000,000 | |||||||
Guarantee Nexstar Senior Secured Credit Facility Revolving Credit Facility [Member] | Subsequent Event [Member] | LKQD Technologies, Inc [Member] | |||||||||
Guarantees of Nexstar Debt [Abstract] | |||||||||
Borrowed amount | $ 44,000,000 |
Commitments and Contingencies53
Commitments and Contingencies - Future Minimum Lease Payments under Operating Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Leases Operating [Abstract] | |
2,018 | $ 2,119 |
2,019 | 2,212 |
2,020 | 2,298 |
2,021 | 1,394 |
2,022 | 864 |
Thereafter | 6,571 |
Operating leases future minimum payments due, total | $ 15,458 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Contributions by employer | $ 23,000 | $ 20,000 | $ 21,000 |