Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 22, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | MISSION BROADCASTING INC | ||
Entity Central Index Key | 0001142412 | ||
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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,000 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 10,798 | $ 9,524 |
Accounts receivable, net of allowance for doubtful accounts of $222 and $128, respectively | 12,857 | 14,717 |
Due from Nexstar Broadcasting, Inc. | 77,521 | 92,920 |
Prepaid expenses and other current assets | 1,130 | 2,070 |
Total current assets | 102,306 | 119,231 |
Property and equipment, net | 19,867 | 18,454 |
Goodwill | 33,187 | 33,187 |
FCC licenses | 43,102 | 43,102 |
Other intangible assets, net | 13,712 | 15,841 |
Deferred tax assets, net | 3,485 | 1,508 |
Other noncurrent assets, net | 936 | 1,137 |
Total assets | 216,595 | 232,460 |
Current liabilities: | ||
Current portion of debt | 2,285 | 2,314 |
Current portion of broadcast rights payable | 325 | 986 |
Accounts payable | 1,832 | 1,090 |
Accrued expenses | 1,992 | 10,851 |
Accrued capital expenditures | 1,251 | |
Interest payable | 152 | 771 |
Deferred rent | 721 | 702 |
Total current liabilities | 8,558 | 16,714 |
Debt | 222,354 | 223,428 |
Other noncurrent liabilities | 6,820 | 7,626 |
Total liabilities | 237,732 | 247,768 |
Commitments and contingencies (Note 12) | ||
Shareholders' deficit: | ||
Common stock - $1 par value, 1,000 shares authorized, issued and outstanding as of each of December 31, 2018 and December 31, 2017 | 1 | 1 |
Subscription receivable | (1) | (1) |
Accumulated deficit | (21,137) | (15,308) |
Total shareholders' deficit | (21,137) | (15,308) |
Total liabilities and shareholders' deficit | $ 216,595 | $ 232,460 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 222 | $ 128 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net revenue | $ 109,224 | $ 107,138 | $ 104,193 |
Operating expenses (income): | |||
Direct operating expenses, excluding depreciation and amortization | 40,861 | 35,802 | 30,201 |
Selling, general and administrative expenses, excluding depreciation and amortization | 4,965 | 4,153 | 3,549 |
Fees incurred pursuant to local service agreements with Nexstar Broadcasting, Inc. | 55,650 | 35,500 | 18,000 |
Amortization of broadcast rights | 1,584 | 5,645 | 5,567 |
Amortization of intangible assets | 2,129 | 2,392 | 2,422 |
Depreciation | 3,171 | 2,342 | 2,400 |
Reimbursement from the FCC related to station repack | (2,818) | 0 | |
Total operating expenses | 105,542 | 85,834 | 62,139 |
Income from operations | 3,682 | 21,304 | 42,054 |
Interest expense | (11,101) | (10,135) | (10,251) |
Loss on extinguishment of debt | (452) | (2,133) | |
(Loss) income before income taxes | (7,871) | 9,036 | 31,803 |
Income tax benefit (expense) | 2,042 | (3,400) | (12,337) |
Net (loss) income | (5,829) | 5,636 | 19,466 |
Net Broadcast Revenue [Member] | |||
Net revenue | 69,227 | 70,592 | 61,402 |
Advertising Revenue [Member] | Nexstar Broadcasting, Inc. [Member] | |||
Net revenue | $ 39,997 | $ 36,546 | $ 42,791 |
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, 2015 | $ (40,410) | $ 1 | $ (1) | $ (40,410) |
Balance (in shares) at Dec. 31, 2015 | 1,000 | |||
Net (loss) 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 | |||
Net (loss) 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 | ||
Net (loss) income | $ (5,829) | (5,829) | ||
Balance at Dec. 31, 2018 | $ (21,137) | $ 1 | $ (1) | $ (21,137) |
Balance (in shares) at Dec. 31, 2018 | 1,000 | 1,000 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (5,829) | $ 5,636 | $ 19,466 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Deferred income tax (benefit) expense | (1,977) | 4,451 | 11,032 |
Provision for bad debt | 97 | 86 | |
Depreciation of property and equipment | 3,171 | 2,342 | 2,400 |
Amortization of intangible assets | 2,129 | 2,392 | 2,422 |
Amortization of debt financing costs and debt discount | 764 | 750 | 566 |
Amortization of broadcast rights, excluding barter | 1,584 | 1,619 | 1,596 |
Payments for broadcast rights | (1,591) | (1,632) | (1,685) |
Loss on asset disposal | 4 | 75 | 168 |
Deferred gain recognition | (198) | (198) | (198) |
Loss on extinguishment of debt | 452 | 2,133 | |
Spectrum repack reimbursements | (2,818) | ||
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 1,763 | (2,469) | (2,962) |
Prepaid expenses and other current assets | 282 | (818) | 6 |
Other noncurrent assets | 8 | (7) | (11) |
Accounts payable, accrued expenses and deferred rent | (8,030) | 4,255 | 1,804 |
Other noncurrent liabilities | (400) | (1,819) | (395) |
Due from Nexstar Broadcasting, Inc. | 15,399 | (12,100) | (28,837) |
Net cash provided by operating activities | 4,810 | 4,696 | 5,372 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (4,044) | (700) | (241) |
Spectrum repack reimbursements | 2,818 | ||
Payment for acquisition | (800) | ||
Proceeds from disposals of property and equipment | 100 | ||
Net cash used in investing activities | (1,226) | (1,400) | (241) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 230,609 | ||
Repayments of long-term debt | (2,310) | (227,051) | (2,335) |
Payments for debt financing costs | (3,804) | (683) | |
Net cash used in financing activities | (2,310) | (246) | (3,018) |
Net increase in cash and cash equivalents | 1,274 | 3,050 | 2,113 |
Cash and cash equivalents at beginning of period | 9,524 | 6,474 | 4,361 |
Cash and cash equivalents at end of period | 10,798 | 9,524 | 6,474 |
Non-cash investing activities: | |||
Accrued purchases of property and equipment | 1,251 | 707 | |
Supplemental information: | |||
Interest paid | 10,953 | 9,639 | 8,685 |
Income taxes paid, net of refunds | $ 221 | $ 1,101 | $ 1,307 |
Organization and Business Opera
Organization and Business Operations | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Business Operations | 1. Organization and Business Operations As of December 31, 2018, Mission Broadcasting, Inc. (“Mission” or the “Company”) owned and operated 19 full power television stations, affiliated with ABC, FOX, NBC, CBS, The CW, MNTV and other broadcast 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 22, 2019, 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 March 22, 2019, 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 4.25 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, 2018, 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, 2018 | |
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, 2018 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, nonrecurring expenses (including time brokerage agreement fees), network compensation payments received or receivable and corporate management fees, less payments for broadcast rights, 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 2021 and 2028) 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 the SSAs 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, 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 collectable. 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 As discussed in Recent Accounting Pronouncements below, the Company adopted the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”) and all related amendments. ASC 606 establishes a comprehensive new revenue recognition model designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for those goods or services and requires significantly enhanced revenue disclosures. The Company adopted this standard effective January 1, 2018 using the modified retrospective method as applied to customer contracts that were not completed as of January 1, 2018. As a result, financial information for reporting periods beginning on or after January 1, 2018 is presented under ASC 606, while comparative financial information has not been adjusted and continues to be reported in accordance with the Company’s historical accounting policy for revenue recognition prior to the adoption of ASC 606. The Company’s revenue is primarily derived from the sale of advertising by Nexstar under JSAs, and the compensation received from multichannel video programming distributors (“MVPDs”) and over-the-top video distributors (“OTTDs”) in its markets in return for the Company’s consent to the retransmission of the signals of its television stations. Total revenue includes revenue from Nexstar, retransmission compensation, and other broadcast related revenues. The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price, which is generally determined based on the price charged to customers. The Company also determines whether gross or net presentation is appropriate based on its relationship in the applicable transaction with its ultimate customer. Any amounts paid by customers but not earned as of the balance sheet date are recorded as a contract liability (deferred revenue). The lag between billing the customers and when the payment is due is not significant. Revenue from Nexstar is directly correlated to the advertising revenue earned at the Company’s stations and is recognized, for the amount the Company is entitled to receive, when the television advertising spots are sold by Nexstar and the advertisements are broadcast on Mission stations or delivered on Mission’s television station websites. Television advertising contracts are short-term in nature and include a number of spots that are delivered over the term of the arrangement The performance obligation for the broadcast of commercials (local, national and political advertising) is identified at the contract level as it represents a station’s promise to deliver an agreed number of spots, an agreed price per spot and other specifications. Each performance obligation is satisfied over time as the advertiser receives and consumes benefits when a station airs the advertiser’s commercial The Company’s retransmission consent agreements with MVPDs and OTTDs generally have a three-year term and provide revenue based on a monthly amount the Company is entitled to receive per subscriber. Under ASC 606, these revenues are considered arising from the licensing of functional intellectual property. As such, the Company applied the exception for sales- or usage-based royalty for the accounting of variable consideration and recognizes revenues (retransmission compensation) at the point in time the broadcast signal is delivered to the distributors. The report their subscriber numbers to the Company on a 30- to 60-day lag, which coincides with their payment of the fees due to the Company. Prior to receiving the report from the MVPDs, the Company records revenue based on estimated subscribers and the monthly amount the Company is entitled to receive per subscriber. The impact of the lag in the number of subscribers is not significant. The above revenue recognition policies are consistent with the Company’s historical accounting policies prior to the adoption of ASC 606. Effective on January 1, 2018, the Company no longer recognizes barter revenue (and the related barter expense) resulting from the exchange of advertising time for certain program material. During the years ended December 31, 2017 and 2016, barter revenue (and the related barter expense) was $4.0 included in amortization of broadcast rights in the accompanying Condensed Statement of Operations. Under the Company’s historical accounting policy prior to the adoption of ASC 606, barter revenue (and the related barter expense) would have been $3.8 million during the year ended December 31, 2018. In addition, the current barter assets (and the related current barter liabilities) would have been $0.4 million, and the noncurrent barter assets (and the related noncurrent barter liabilities) would have been $0.2 million as of December 31, 2018. The Company elected to utilize the practical expedient around costs incurred to obtain contracts due to their short-term nature. Additionally, the incremental benefit from efforts in acquiring these contracts is considered not significant. Thus, the Company continued to expense sales commissions when incurred. The Company did not disclose the value of unsatisfied performance obligations on its contracts with customers because they are either (i) contracts with an original expected term of one year or less, or (ii) contracts for which the sales- or usage-based royalty exception was applied , or (iii) contracts for which revenue is recognized in proportion to the amount the Company has the right to invoice for services performed . See Note 7 for additional disclosures on revenue from contracts with customers. 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 and are amortized on a straight-line basis over the period the programming airs. The current portion of cash broadcast rights represents those rights available for broadcast which will be amortized in the succeeding year. The Company periodically evaluates the net realizable value, calculated using the average historical advertising rates for the programs or the time periods the programming will air, of cash broadcast rights and adjusts amortization in that quarter for any deficiency calculated. Effective on January 1, 2018, the Company no longer recognizes barter broadcast rights and barter broadcast rights payable resulting from the exchange of advertising time for certain program material. See Revenue Recognition policy above for additional information. Property and Equipment, Net Property and equipment is stated at cost or estimated fair value at the date of acquisition through a business combination. 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, 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 Company aggregates its television stations into a single broadcast business reporting unit for purposes of goodwill impairment tests because of their similar economic characteristics. 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 goodwill 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. An impairment is recorded when the carrying value of an FCC license exceeds its fair value. Determining the fair value of reporting units and FCC licenses 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 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. The impairment test for finite-lived intangible assets consists of an asset (asset group) comparison of the carrying amount with its estimated undiscounted 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. 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, 2018 and 2017, debt financing costs related to the term loan of $3.9 million and $5.1 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, 2018 and 2017 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, 2018, 2017 and 2016, 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 May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The Company adopted this standard and all related amendments effective January 1, 2018 using the modified retrospective method as applied to customer contracts that were not completed as of January 1, 2018. Upon adoption of this standard, the cumulative adjustment to the Company’s accumulated deficit as of January 1, 2018 for the cumulative effect of initially applying the new standard is not material. See Revenue Recognition above for the Company’s updated accounting policy and for expanded disclosures. 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. The Company has applied the change in accounting as of January 1, 2018. The adoption of ASU 2016-15 did not impact the Company's Financial Statements. 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 Company has applied this change in accounting as of January 1, 2018. The adoption of ASU 2017-01 did not impact the Company's Financial Statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this Update are effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company has applied the change in accounting as of January 1, 2018. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule is effective on November 5, 2018. The Company has applied the new SEC disclosure requirements in its financial statements on a retrospective basis. New Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). Under this guidance, lessees are required to recognize on the balance sheet a right-of-use asset and a lease liability arising from operating leases except for short-term contracts with original terms of twelve months or less. The new guidance also requires enhanced qualitative and quantitative disclosures in the notes to the financial statements and is expected to provide transparency of information and comparability among organizations. ASU 2016-02 and related amendments is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company will adopt ASU 2016–02 as of January 1, 2019 using the optional transition method. As such, the Company's reporting for the comparative periods presented in the financial statements will continue to be in accordance with ASC Topic 840, Leases. The Company In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13”).” 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 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements . The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently evaluating the impact of adopting ASU 2018-13 on its financial statements. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions 2017 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. 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 allowed Mission entrance into this market. The fair values of the assets acquired and liabilities assumed were 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, 2018 | |
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 an 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 which the Company has entered into an SSA, it has also entered into a JSA, whereby Nexstar sells certain advertising time of the station and retains a percentage of the related revenue. For the stations with a 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 and have terms for 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. Monthly consideration under the SSA arrangements are flat fees subject to a 10.0% annual escalation. 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, 2018: Station Market Type of Agreement Expiration Consideration WFXP Erie, PA TBA 8/17/30 Monthly payments received from Nexstar KHMT Billings, MT TBA 12/15/29 Monthly payments received from Nexstar KFQX Grand Junction, CO TBA 6/14/26 Monthly payments received from Nexstar KJTL/KJBO-LP Wichita Falls, TX-Lawton, OK SSA JSA 6/30/25 5/31/19 $165 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 $848 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 $307 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 $225 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 $188 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 $73 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 $220 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KAMC Lubbock, TX SSA JSA 6/30/25 2/16/35 $303 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KOLR Springfield, MO SSA JSA 6/30/25 2/16/35 $706 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WUTR Utica, NY SSA JSA 6/30/25 3/31/24 $92 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WTVO Rockford, IL SSA JSA 6/30/25 10/31/24 $321 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 $358 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WTVW Evansville, IN SSA JSA 6/30/25 11/30/19 $193 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 $578 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 $284 thousand per month paid to Nexstar 70% of net revenue received from Nexstar |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 Buildings and improvements 39 $ 8,396 $ 8,385 Land N/A 1,632 1,632 Leasehold improvements term of lease 70 70 Studio and transmission equipment 5-15 36,074 38,697 Computer equipment 3-5 320 544 Furniture and fixtures 7 832 832 Vehicles 5 701 734 Construction in progress N/A 5,423 989 53,448 51,883 Less: accumulated depreciation (33,581 ) (33,429 ) Property and equipment, net $ 19,867 $ 18,454 The increase in property and equipment primarily relates to spectrum repack projects , routine purchases of property and equipment, less disposals. 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, 2018 and 2017, the balance of deferred gain included $0.2 million and $0.4 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, 2018 | |
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 2018 2017 useful life, Accumulated Accumulated in years Gross Amortization Net Gross Amortization Net Network affiliation agreements 15 $ 86,248 $ (73,153 ) $ 13,095 $ 86,248 $ (71,150 ) $ 15,098 Other definite-lived intangible assets 1-15 15,681 (15,064 ) 617 15,681 (14,938 ) 743 Other intangible assets $ 101,929 $ (88,217 ) $ 13,712 $ 101,929 $ (86,088 ) $ 15,841 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 2018 or 2017. 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, 2018 (in thousands): 2019 $ 1,919 2020 1,518 2021 1,517 2022 1,517 2023 1,444 Thereafter 5,797 $ 13,712 The carrying amounts of goodwill and FCC licenses for the years ended December 31, 2018 and 2017 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 Balances as of December 31, 2018 $ 34,737 $ (1,550 ) $ 33,187 $ 53,799 $ (10,697 ) $ 43,102 As discussed in Note 2, the Company has one broadcast business reporting unit for purposes of annual goodwill impairment review as of December 31, 2018. The Company’s annual impairment review of FCC licenses is performed at the station market level. In the fourth quarter of 2018, the company performed its annual impairment tests on goodwill and FCC licenses using the qualitative analysis approach and concluded that it was more likely than not that the fair values of the reporting units and FCC licenses would sufficiently exceed their respective carrying amounts. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt Long-term debt consisted of the following, as of December 31 (in thousands): 2018 2017 Term loan, net of financing costs and discount of $3,888 and $5,099, respectively $ 224,639 $ 225,742 Less: current portion (2,285 ) (2,314 ) $ 222,354 $ 223,428 Senior Secured Credit Facility On October 26, 2018, Mission amended its senior secured credit facility, which reduced the 25 October 26, 2023. As of December 31, 2018 and 2017, the Mission senior secured credit facility had $224.6 million and $225.7 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, 2018, Mission repaid the scheduled maturities of $2.3 million of its term loan. 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 4.77% and 4.06% for the years ended December 31, 2018 and 2017, respectively. The interest rate on Mission’s revolving loan was 4.27% and 3.56% as of December 31, 2018 and 2017, 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, 2018, Mission had $3.0 million of total unused revolving loan commitments under its senior secured credit facility, all of which was available for borrowing, based on the covenant calculations. Pursuant to the terms of Mission’s and Nexstar’s credit agreements, Mission may reallocate any of its unused revolving loan commitment to Nexstar and Nexstar may also reallocate certain of its unused revolving loan commitment to Mission 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 due 2024 (the “5.625% Notes”) issued by Nexstar and the $275.0 million 6.125% senior unsecured notes due 2022 (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 the Company and Nexstar. 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, 2018, Nexstar had $888.2 million outstanding obligations under its 5.625% Notes, $273.4 million outstanding obligations under its 6.125% Notes and a maximum commitment of $2.278 billion under its senior secured credit facility, of which $1.289 billion in Term Loan B (due January 17, 2024) and $825.1 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, 2018. 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): 2018 2017 Carrying Fair Carrying Fair Amount Value Amount Value Term loan $ 224,639 $ 220,450 $ 225,742 $ 231,580 The fair value of the term loan 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, 2018 are summarized as follows (in thousands): 2019 $ 2,285 2020 2,285 2021 2,285 2022 2,285 2023 2,285 Thereafter 217,102 $ 228,527 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 8. Revenue As discussed in Note 2, the Company adopted the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and all related amendments. ASC 606 establishes a comprehensive new revenue recognition model designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for those goods or services and requires significantly enhanced revenue disclosures. The Company adopted this standard effective January 1, 2018 using the modified retrospective method as applied to customer contracts that were not completed as of January 1, 2018. As a result, financial information for reporting periods beginning after January 1, 2018 is presented under ASC 606, while comparative financial information has not been adjusted and continues to be reported in accordance with the Company’s historical accounting policy for revenue recognition prior to the adoption of ASC 606. Upon adoption of this standard, the cumulative adjustment to the Company’s accumulated deficit as of January 1, 2018 for the cumulative effect of initially applying the new standard was not material. Comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The following are additional disclosures about the Company’s revenue under ASC 606. Contract Balance Contract balances typically arise when a difference in timing between the transfer of control to the customer and receipt of consideration occurs. As of each of December 31, 2018 and January 1, 2018, the Company had no contract balances. Disaggregation of Revenues The following table presents the disaggregation of our revenue for the years ended December 31, 2018, 2017 and 2016 under ASC 606. Comparative 2017 and 2016 revenues are presented in accordance with the Company’s historical accounting standard prior to the adoption of ASC 606 (in thousands): 2018 2017 2016 Retransmission compensation $ 68,365 $ 65,854 $ 56,802 Other 862 712 629 Barter revenue - 4,026 3,971 Revenue from Nexstar 39,997 36,546 42,791 Net revenue $ 109,224 $ 107,138 $ 104,193 Revenue from Nexstar is directly correlated to the advertising revenue earned at the Company’s stations and is positively affected by national and regional political campaigns, and certain events such as the Olympic Games or the Super Bowl. Company stations’ advertising revenue is generally highest in the second and fourth quarters of each year, due in part to increases in consumer advertising in the spring and retail advertising in the period leading up to, and including, the holiday season. In addition, advertising revenue is generally higher during even-numbered years when congressional and presidential elections occur, and advertising is aired during the Olympic Games. The Company receives compensation from MVPDs and OTTDs in return for the consent to the retransmission of the signals of its television stations. Retransmission compensation is recognized at the point in time the broadcast signal is delivered to the distributors and is based on Beginning in 2018, the Company no longer recognizes barter revenue (and the related barter expense) resulting from the exchange of advertising time for certain program material. Under the Company’s historical accounting policy prior to the adoption of ASC 606, barter revenue (and the related barter expense) would have been $3.8 million during the year ended December 31, 2018. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Common Stock | 9. 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, 2018 and 2017 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The income tax (benefit) expense consisted of the following components for the years ended December 31 (in thousands): 2018 2017 2016 Current tax (benefit) expense: Federal $ (5 ) $ (1,355 ) $ 545 State (60 ) 304 760 (65 ) (1,051 ) 1,305 Deferred tax (benefit) Federal (1,523 ) 4,140 9,844 State (454 ) 311 1,188 (1,977 ) 4,451 11,032 Income tax (benefit) expense $ (2,042 ) $ 3,400 $ 12,337 The income tax (benefit) expense differs from the amount computed by applying the statutory federal income tax rate to (loss) income before income taxes. The sources and tax effects of the differences were as follows, for the years ended December 31 (in thousands): 2018 2017 2016 Federal income tax at the statutory rate $ (1,653 ) $ 3,162 $ 11,131 State and local taxes, net of federal benefit (395 ) 410 1,265 Impact of federal tax rate reduction on deferred taxes - 1,220 - Impact of federal tax rate reduction on uncertain tax positions - (1,471 ) - Other 6 79 (59 ) Income tax expense (benefit) $ (2,042 ) $ 3,400 $ 12,337 In 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law which reduced the federal corporate income tax rate from 35% to 21%. The components of the net deferred tax asset were as follows, as of December 31 (in thousands): 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 12,808 $ 11,726 Rent 501 601 Other 5,139 2,621 Total deferred tax assets 18,448 14,948 Deferred tax liabilities: Property and equipment (1,721 ) (2,141 ) Goodwill (4,888 ) (4,300 ) Other intangible assets (833 ) (901 ) FCC licenses (6,706 ) (6,098 ) Other (815 ) - Total deferred tax liabilities (14,963 ) (13,440 ) Net deferred tax assets $ 3,485 $ 1,508 As of December 31, 2018, the Company’s reserve for uncertain tax positions totaled approximately $2.2 million. For the years ended December 31, 2018, 2017 and 2016 there were $2.2 million, $2.2 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): 2018 2017 2016 Uncertain tax position liability at the beginning of the year $ 2,206 $ 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 $ 2,206 $ 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, 2018 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 2014. 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, 2018, the Company has federal NOLs available of $57.1 million and post-apportionment state NOLs available of $14.1 million which are available to reduce future taxable income if utilized before their expiration. The federal NOLs generated prior to 2018 expire at various dates through 2033 if not utilized. NOLs generated beginning in years 2018 are subject to an overall limitation based on 80% of taxable income. Any excess NOL carryover in a year beginning in 2018 has no expiration. These NOLs have an indefinite life carryover and utilization in any year will be limited to 80% of taxable income. The $3.4 million of NOL generated in 2018 would be subject to this limitation. 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, 2018 | |
Risks And Uncertainties [Abstract] | |
FCC Regulatory Matters | 11. 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 by 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 JSA (this rule had been previously adopted in 2014 but was vacated by the U.S. Court of Appeals for the Third Circuit (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 Third Circuit denied a mandamus petition which had sought to stay their effectiveness. The Reconsideration Order remains subject to appeals before the Third Circuit. In December 2018, the FCC initiated its 2018 quadrennial review with the issuance of a Notice of Proposed Rulemaking. Among other things, the FCC seeks comment on all aspects of the local television ownership rule’s implementation and whether the current version of the rule remains necessary in the public interest. Comments and reply comments in the 2018 quadrennial review are due in the second quarter of 2019. 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 this “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 were 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 was filed in a federal appeals court. On July 25, 2018, the federal court dismissed the appeal for lack of standing. 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 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 are being “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 are required to construct and license the necessary technical modifications to operate on their new assigned channels and will need to cease operating on their former 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 February 6, 2019, these costs were approximately $1.95 billion, and the FCC has indicated that it expects those costs to rise. and Comprehensive Income The Company cannot determine if the FCC will be able to fully reimburse the its repacking costs as this is dependent on certain factors, including the Company’s 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 it 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, MVPDs and other parties 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. Exclusivity/Retransmission Consent On March 3, 2011, the FCC initiated a Notice of Proposed Rulemaking which among other things 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 further notice of proposed rulemaking which sought additional comment on the elimination or modification of the network non-duplication and syndicated exclusivity rules. The FCC’s 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. On December 5, 2014, federal legislation 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 and comments and reply comments were submitted. In July 2016, the then-Chairman of the FCC publicly announced that the agency would not adopt additional rules in this proceeding. However, the proceeding remains open. 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. 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, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. 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, 2018 (in thousands): 2019 $ 953 2020 375 2021 37 2022 2 $ 1,367 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, 2018, 2017 and 2016. Future minimum lease payments under these operating leases are as follows as of December 31, 2018 (in thousands): 2019 $ 2,433 2020 2,447 2021 1,507 2022 902 2023 934 Thereafter 5,733 $ 13,956 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, 2018 of which none was outstanding as of December 31, 2018. On February 28, 2019, Nexstar prepaid $60.0 million of the outstanding principal balance under its Term Loan B. 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, nonrecurring expenses (including time brokerage agreement fees), network compensation payments received or receivable and corporate management fees, less payments for broadcast rights 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 2021 and 2028) 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, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | 13. 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 $45,000, $23,000 and $20,000 to the Plan for the years ended December 31, 2018, 2017 and 2016, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 the SSAs 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, 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 collectable. |
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 As discussed in Recent Accounting Pronouncements below, the Company adopted the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”) and all related amendments. ASC 606 establishes a comprehensive new revenue recognition model designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for those goods or services and requires significantly enhanced revenue disclosures. The Company adopted this standard effective January 1, 2018 using the modified retrospective method as applied to customer contracts that were not completed as of January 1, 2018. As a result, financial information for reporting periods beginning on or after January 1, 2018 is presented under ASC 606, while comparative financial information has not been adjusted and continues to be reported in accordance with the Company’s historical accounting policy for revenue recognition prior to the adoption of ASC 606. The Company’s revenue is primarily derived from the sale of advertising by Nexstar under JSAs, and the compensation received from multichannel video programming distributors (“MVPDs”) and over-the-top video distributors (“OTTDs”) in its markets in return for the Company’s consent to the retransmission of the signals of its television stations. Total revenue includes revenue from Nexstar, retransmission compensation, and other broadcast related revenues. The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price, which is generally determined based on the price charged to customers. The Company also determines whether gross or net presentation is appropriate based on its relationship in the applicable transaction with its ultimate customer. Any amounts paid by customers but not earned as of the balance sheet date are recorded as a contract liability (deferred revenue). The lag between billing the customers and when the payment is due is not significant. Revenue from Nexstar is directly correlated to the advertising revenue earned at the Company’s stations and is recognized, for the amount the Company is entitled to receive, when the television advertising spots are sold by Nexstar and the advertisements are broadcast on Mission stations or delivered on Mission’s television station websites. Television advertising contracts are short-term in nature and include a number of spots that are delivered over the term of the arrangement The performance obligation for the broadcast of commercials (local, national and political advertising) is identified at the contract level as it represents a station’s promise to deliver an agreed number of spots, an agreed price per spot and other specifications. Each performance obligation is satisfied over time as the advertiser receives and consumes benefits when a station airs the advertiser’s commercial The Company’s retransmission consent agreements with MVPDs and OTTDs generally have a three-year term and provide revenue based on a monthly amount the Company is entitled to receive per subscriber. Under ASC 606, these revenues are considered arising from the licensing of functional intellectual property. As such, the Company applied the exception for sales- or usage-based royalty for the accounting of variable consideration and recognizes revenues (retransmission compensation) at the point in time the broadcast signal is delivered to the distributors. The report their subscriber numbers to the Company on a 30- to 60-day lag, which coincides with their payment of the fees due to the Company. Prior to receiving the report from the MVPDs, the Company records revenue based on estimated subscribers and the monthly amount the Company is entitled to receive per subscriber. The impact of the lag in the number of subscribers is not significant. The above revenue recognition policies are consistent with the Company’s historical accounting policies prior to the adoption of ASC 606. Effective on January 1, 2018, the Company no longer recognizes barter revenue (and the related barter expense) resulting from the exchange of advertising time for certain program material. During the years ended December 31, 2017 and 2016, barter revenue (and the related barter expense) was $4.0 included in amortization of broadcast rights in the accompanying Condensed Statement of Operations. Under the Company’s historical accounting policy prior to the adoption of ASC 606, barter revenue (and the related barter expense) would have been $3.8 million during the year ended December 31, 2018. In addition, the current barter assets (and the related current barter liabilities) would have been $0.4 million, and the noncurrent barter assets (and the related noncurrent barter liabilities) would have been $0.2 million as of December 31, 2018. The Company elected to utilize the practical expedient around costs incurred to obtain contracts due to their short-term nature. Additionally, the incremental benefit from efforts in acquiring these contracts is considered not significant. Thus, the Company continued to expense sales commissions when incurred. The Company did not disclose the value of unsatisfied performance obligations on its contracts with customers because they are either (i) contracts with an original expected term of one year or less, or (ii) contracts for which the sales- or usage-based royalty exception was applied , or (iii) contracts for which revenue is recognized in proportion to the amount the Company has the right to invoice for services performed . See Note 7 for additional disclosures on revenue from contracts with customers. |
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 and are amortized on a straight-line basis over the period the programming airs. The current portion of cash broadcast rights represents those rights available for broadcast which will be amortized in the succeeding year. The Company periodically evaluates the net realizable value, calculated using the average historical advertising rates for the programs or the time periods the programming will air, of cash broadcast rights and adjusts amortization in that quarter for any deficiency calculated. Effective on January 1, 2018, the Company no longer recognizes barter broadcast rights and barter broadcast rights payable resulting from the exchange of advertising time for certain program material. See Revenue Recognition policy above for additional information. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment is stated at cost or estimated fair value at the date of acquisition through a business combination. 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, 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 Company aggregates its television stations into a single broadcast business reporting unit for purposes of goodwill impairment tests because of their similar economic characteristics. 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 goodwill 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. An impairment is recorded when the carrying value of an FCC license exceeds its fair value. Determining the fair value of reporting units and FCC licenses 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 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. The impairment test for finite-lived intangible assets consists of an asset (asset group) comparison of the carrying amount with its estimated undiscounted 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. |
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, 2018 and 2017, debt financing costs related to the term loan of $3.9 million and $5.1 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, 2018 and 2017 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, 2018, 2017 and 2016, 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 May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The Company adopted this standard and all related amendments effective January 1, 2018 using the modified retrospective method as applied to customer contracts that were not completed as of January 1, 2018. Upon adoption of this standard, the cumulative adjustment to the Company’s accumulated deficit as of January 1, 2018 for the cumulative effect of initially applying the new standard is not material. See Revenue Recognition above for the Company’s updated accounting policy and for expanded disclosures. 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. The Company has applied the change in accounting as of January 1, 2018. The adoption of ASU 2016-15 did not impact the Company's Financial Statements. 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 Company has applied this change in accounting as of January 1, 2018. The adoption of ASU 2017-01 did not impact the Company's Financial Statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this Update are effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company has applied the change in accounting as of January 1, 2018. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule is effective on November 5, 2018. The Company has applied the new SEC disclosure requirements in its financial statements on a retrospective basis. New Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). Under this guidance, lessees are required to recognize on the balance sheet a right-of-use asset and a lease liability arising from operating leases except for short-term contracts with original terms of twelve months or less. The new guidance also requires enhanced qualitative and quantitative disclosures in the notes to the financial statements and is expected to provide transparency of information and comparability among organizations. ASU 2016-02 and related amendments is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company will adopt ASU 2016–02 as of January 1, 2019 using the optional transition method. As such, the Company's reporting for the comparative periods presented in the financial statements will continue to be in accordance with ASC Topic 840, Leases. The Company In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13”).” 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 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements . The amendments in this update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently evaluating the impact of adopting ASU 2018-13 on its financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Parker Broadcasting of Colorado, LLC [Member] | |
Schedule of Assets Acquired and Liabilities Assumed | The fair values of the assets acquired and liabilities assumed were 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 with_2
Local Service Agreements with Nexstar (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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. Monthly consideration under the SSA arrangements are flat fees subject to a 10.0% annual escalation. 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, 2018: Station Market Type of Agreement Expiration Consideration WFXP Erie, PA TBA 8/17/30 Monthly payments received from Nexstar KHMT Billings, MT TBA 12/15/29 Monthly payments received from Nexstar KFQX Grand Junction, CO TBA 6/14/26 Monthly payments received from Nexstar KJTL/KJBO-LP Wichita Falls, TX-Lawton, OK SSA JSA 6/30/25 5/31/19 $165 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 $848 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 $307 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 $225 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 $188 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 $73 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 $220 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KAMC Lubbock, TX SSA JSA 6/30/25 2/16/35 $303 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KOLR Springfield, MO SSA JSA 6/30/25 2/16/35 $706 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WUTR Utica, NY SSA JSA 6/30/25 3/31/24 $92 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WTVO Rockford, IL SSA JSA 6/30/25 10/31/24 $321 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 $358 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WTVW Evansville, IN SSA JSA 6/30/25 11/30/19 $193 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 $578 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 $284 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, 2018 | |
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 2018 2017 Buildings and improvements 39 $ 8,396 $ 8,385 Land N/A 1,632 1,632 Leasehold improvements term of lease 70 70 Studio and transmission equipment 5-15 36,074 38,697 Computer equipment 3-5 320 544 Furniture and fixtures 7 832 832 Vehicles 5 701 734 Construction in progress N/A 5,423 989 53,448 51,883 Less: accumulated depreciation (33,581 ) (33,429 ) Property and equipment, net $ 19,867 $ 18,454 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 2017 useful life, Accumulated Accumulated in years Gross Amortization Net Gross Amortization Net Network affiliation agreements 15 $ 86,248 $ (73,153 ) $ 13,095 $ 86,248 $ (71,150 ) $ 15,098 Other definite-lived intangible assets 1-15 15,681 (15,064 ) 617 15,681 (14,938 ) 743 Other intangible assets $ 101,929 $ (88,217 ) $ 13,712 $ 101,929 $ (86,088 ) $ 15,841 |
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, 2018 (in thousands): 2019 $ 1,919 2020 1,518 2021 1,517 2022 1,517 2023 1,444 Thereafter 5,797 $ 13,712 |
Goodwill and FCC Licenses | The carrying amounts of goodwill and FCC licenses for the years ended December 31, 2018 and 2017 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 Balances as of December 31, 2018 $ 34,737 $ (1,550 ) $ 33,187 $ 53,799 $ (10,697 ) $ 43,102 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Long-term debt consisted of the following, as of December 31 (in thousands): 2018 2017 Term loan, net of financing costs and discount of $3,888 and $5,099, respectively $ 224,639 $ 225,742 Less: current portion (2,285 ) (2,314 ) $ 222,354 $ 223,428 |
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): 2018 2017 Carrying Fair Carrying Fair Amount Value Amount Value Term loan $ 224,639 $ 220,450 $ 225,742 $ 231,580 The fair value of the term loan 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, 2018 are summarized as follows (in thousands): 2019 $ 2,285 2020 2,285 2021 2,285 2022 2,285 2023 2,285 Thereafter 217,102 $ 228,527 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ASC 606 [Member] | |
Summary of Disaggregation of Revenue | The following table presents the disaggregation of our revenue for the years ended December 31, 2018, 2017 and 2016 under ASC 606. Comparative 2017 and 2016 revenues are presented in accordance with the Company’s historical accounting standard prior to the adoption of ASC 606 (in thousands): 2018 2017 2016 Retransmission compensation $ 68,365 $ 65,854 $ 56,802 Other 862 712 629 Barter revenue - 4,026 3,971 Revenue from Nexstar 39,997 36,546 42,791 Net revenue $ 109,224 $ 107,138 $ 104,193 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax (Benefit) Expense | The income tax (benefit) expense consisted of the following components for the years ended December 31 (in thousands): 2018 2017 2016 Current tax (benefit) expense: Federal $ (5 ) $ (1,355 ) $ 545 State (60 ) 304 760 (65 ) (1,051 ) 1,305 Deferred tax (benefit) Federal (1,523 ) 4,140 9,844 State (454 ) 311 1,188 (1,977 ) 4,451 11,032 Income tax (benefit) expense $ (2,042 ) $ 3,400 $ 12,337 |
Schedule of Effective Income Tax (Benefit) Expense Reconciliation | The income tax (benefit) expense differs from the amount computed by applying the statutory federal income tax rate to (loss) income before income taxes. The sources and tax effects of the differences were as follows, for the years ended December 31 (in thousands): 2018 2017 2016 Federal income tax at the statutory rate $ (1,653 ) $ 3,162 $ 11,131 State and local taxes, net of federal benefit (395 ) 410 1,265 Impact of federal tax rate reduction on deferred taxes - 1,220 - Impact of federal tax rate reduction on uncertain tax positions - (1,471 ) - Other 6 79 (59 ) Income tax expense (benefit) $ (2,042 ) $ 3,400 $ 12,337 |
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): 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 12,808 $ 11,726 Rent 501 601 Other 5,139 2,621 Total deferred tax assets 18,448 14,948 Deferred tax liabilities: Property and equipment (1,721 ) (2,141 ) Goodwill (4,888 ) (4,300 ) Other intangible assets (833 ) (901 ) FCC licenses (6,706 ) (6,098 ) Other (815 ) - Total deferred tax liabilities (14,963 ) (13,440 ) Net deferred tax assets $ 3,485 $ 1,508 |
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): 2018 2017 2016 Uncertain tax position liability at the beginning of the year $ 2,206 $ 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 $ 2,206 $ 3,677 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 (in thousands): 2019 $ 953 2020 375 2021 37 2022 2 $ 1,367 |
Future Minimum Lease Payments under Operating Leases | Future minimum lease payments under these operating leases are as follows as of December 31, 2018 (in thousands): 2019 $ 2,433 2020 2,447 2021 1,507 2022 902 2023 934 Thereafter 5,733 $ 13,956 |
Organization and Business Ope_2
Organization and Business Operations - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018TelevisionStationSegmentTelevisionMarket | |
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 | 4.25 to 1.00 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | Nov. 29, 2011USD ($) | Dec. 31, 2018USD ($)ReportingUnit | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||
Retransmission agreements contracts term | 3 years | |||
Revenue | $ 109,224,000 | $ 107,138,000 | $ 104,193,000 | |
Current barter assets | 600,000 | |||
Current barter liabilities | 600,000 | |||
Noncurrent barter assets | 500,000 | |||
Noncurrent barter liabilities | 500,000 | |||
Revolving Credit Facility [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Debt financing costs | 100,000 | 100,000 | ||
Term Loan B [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Debt financing costs | $ 3,900,000 | $ 5,100,000 | ||
Broadcasting [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of reporting units | ReportingUnit | 1 | |||
Network Affiliation Agreements [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 15 years | 15 years | 15 years | |
Barter Revenue [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Revenue | $ 0 | $ 4,026,000 | $ 3,971,000 | |
Expense | 0 | |||
Prior to Adoption of ASC 606 [Member] | Barter Revenue [Member] | ASC 606 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Revenue | 3,800,000 | 4,000,000 | 4,000,000 | |
Expense | 3,800,000 | $ 4,000,000 | $ 4,000,000 | |
Current barter assets | 400,000 | |||
Current barter liabilities | 400,000 | |||
Noncurrent barter assets | 200,000 | |||
Noncurrent barter liabilities | $ 200,000 | |||
Option Agreement To Sell The Assets Of Mission Stations To Nexstar [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Minimum purchase price Mission agreed to sell its capital stock to Nexstar | $ 100,000 | |||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Terms on local service agreements | 8 years | |||
Lag period to report subscriber numbers | 30 days | |||
Minimum [Member] | Network Affiliation Agreements [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 12 years | |||
Minimum [Member] | Option Agreement To Sell The Assets Of Mission Stations To Nexstar [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Options expiration date year | 2021 | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Terms on local service agreements | 10 years | |||
Lag period to report subscriber numbers | 60 days | |||
Maximum [Member] | Network Affiliation Agreements [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 20 years | |||
Maximum [Member] | ASU 2016-02 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of increase in total assets and total liabilities | 5.00% | |||
Maximum [Member] | Option Agreement To Sell The Assets Of Mission Stations To Nexstar [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Options expiration date year | 2028 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) | Mar. 31, 2017 | Jun. 13, 2014 | May 27, 2014 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Network Affiliation Agreements [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets useful life | 15 years | 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, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 33,187 | $ 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 with_3
Local Service Agreements with Nexstar - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Monthly consideration fees, percentage | 10.00% |
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 with_4
Local Service Agreements with Nexstar - Local Service Agreements in Effect with Nexstar (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
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. 17, 2030 |
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. 15, 2029 |
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. 14, 2026 |
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 | $ 165 |
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 | $ 848 |
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 | $ 307 |
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 | $ 225 |
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 | $ 188 |
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 | $ 73 |
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 | $ 220 |
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 | $ 303 |
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. 16, 2035 |
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 | $ 706 |
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. 16, 2035 |
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 | $ 92 |
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 | $ 321 |
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 | $ 358 |
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 | $ 193 |
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 | $ 578 |
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 | $ 284 |
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, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 53,448 | $ 51,883 |
Less: accumulated depreciation | (33,581) | (33,429) |
Property and equipment, net | $ 19,867 | $ 18,454 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life, in years | 39 years | 39 years |
Property and equipment, gross | $ 8,396 | $ 8,385 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,632 | 1,632 |
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 | $ 36,074 | $ 38,697 |
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 | $ 320 | $ 544 |
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 | $ 701 | $ 734 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,423 | $ 989 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - Telecommunications Tower Facilities [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 0.2 | $ 0.4 |
Other Current Liabilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Deferred gain on sale of assets | $ 0.2 | $ 0.2 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross | $ 101,929 | $ 101,929 | |
Accumulated Amortization | (88,217) | (86,088) | |
Net | 13,712 | 15,841 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 15,681 | 15,681 | |
Accumulated Amortization | (15,064) | (14,938) | |
Net | $ 617 | $ 743 | |
Other Intangible Assets [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 1 year | 1 year | |
Other Intangible Assets [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 15 years | 15 years | |
Network Affiliation Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | $ 86,248 | $ 86,248 | |
Accumulated Amortization | (73,153) | (71,150) | |
Net | $ 13,095 | $ 15,098 | |
Estimated useful life | 15 years | 15 years | 15 years |
Network Affiliation Agreements [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 12 years | ||
Network Affiliation Agreements [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 20 years |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Additional Information (Details) - ReportingUnit | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Broadcasting [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Number of reporting units | 1 | ||
Network Affiliation Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 15 years | 15 years | 15 years |
Network Affiliation Agreements [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 12 years | ||
Network Affiliation Agreements [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 20 years |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Estimated Amortization Expense of Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | ||
2019 | $ 1,919 | |
2020 | 1,518 | |
2021 | 1,517 | |
2022 | 1,517 | |
2023 | 1,444 | |
Thereafter | 5,797 | |
Net | $ 13,712 | $ 15,841 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Goodwill and FCC Licenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Goodwill [Abstract] | |||
Goodwill, Gross | $ 34,737 | $ 34,737 | $ 34,039 |
Goodwill, Accumulated Impairment | (1,550) | (1,550) | (1,550) |
Goodwill, Net | 33,187 | 33,187 | 32,489 |
Goodwill Acquisitions, Gross | 698 | ||
Goodwill Acquisitions, Net | 698 | ||
FCC Licenses [Abstract] | |||
FCC Licenses, Gross | 53,799 | 53,799 | 52,260 |
FCC Licenses, Accumulated Impairment | (10,697) | (10,697) | (10,697) |
FCC Licenses, Net | 43,102 | $ 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, 2018 | Dec. 31, 2017 |
Long term Debt [Abstract] | ||
Less: current portion | $ (2,285) | $ (2,314) |
Debt, noncurrent | 222,354 | 223,428 |
Term Loan B [Member] | ||
Long term Debt [Abstract] | ||
Long term Debt | 224,639 | 225,742 |
Less: current portion | (2,285) | (2,314) |
Debt, noncurrent | $ 222,354 | $ 223,428 |
Debt - Long Term Debt (Parenthe
Debt - Long Term Debt (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Term Loan B [Member] | ||
Long term Debt [Abstract] | ||
Debt financing costs and discount | $ 3,888 | $ 5,099 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Oct. 26, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 452,000 | $ 2,133,000 | |
Financial Guarantee of Nexstar 5.625% Senior Unsecured Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | Aug. 1, 2024 | ||
Maximum guarantee exposure | $ 900,000,000 | ||
Interest rate | 5.625% | ||
Current exposure under the guarantee | $ 888,200,000 | ||
Guarantee of Nexstar 6.125% Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | Feb. 15, 2022 | ||
Maximum guarantee exposure | $ 275,000,000 | ||
Interest rate | 6.125% | ||
Current exposure under the guarantee | $ 273,400,000 | ||
Guarantee of Nexstar Senior Secured Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum guarantee exposure | $ 2,278,000,000 | ||
Guarantee of Nexstar Senior Secured Credit Facility Term Loan B [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | Jan. 17, 2024 | ||
Current exposure under the guarantee | $ 1,289,000,000 | ||
Guarantee of Nexstar Senior Secured Credit Facility Term Loan A [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | Jul. 19, 2022 | ||
Current exposure under the guarantee | $ 825,100,000 | ||
Term Loan B [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument reduction in applicable margin portion of interest rates | 0.25% | ||
Long Term Debt | $ 224,639,000 | $ 225,742,000 | |
Term loan periodic payment percentage (in hundredths) | 0.25% | ||
Payment of contractual maturities under term loan | $ 2,300,000 | ||
Frequency of periodic interest payments | quarterly | ||
Interest rate during the period (in hundredths) | 4.77% | 4.06% | |
Revolving Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument reduction in applicable margin portion of interest rates | 0.25% | ||
Maturity date | Oct. 26, 2023 | ||
Long Term Debt | $ 0 | $ 0 | |
Interest rate during the period (in hundredths) | 4.27% | 3.56% | |
Commitment fees | 0.50% | 0.50% | |
Available borrowing capacity | $ 3,000,000 |
Debt - Fair Value of Debt (Deta
Debt - Fair Value of Debt (Details) - Term Loan B [Member] - Level 3 [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Amount [Member] | ||
Fair Value of debt [Line Items] | ||
Carrying and Fair Value of Debt | $ 224,639 | $ 225,742 |
Fair Value [Member] | ||
Fair Value of debt [Line Items] | ||
Carrying and Fair Value of Debt | $ 220,450 | $ 231,580 |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Debt Maturities [Abstract] | |
2019 | $ 2,285 |
2020 | 2,285 |
2021 | 2,285 |
2022 | 2,285 |
2023 | 2,285 |
Thereafter | 217,102 |
Debt | $ 228,527 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Significant Accounting Policies [Line Items] | ||||
Contract balances | $ 0 | $ 0 | ||
Revenue | 109,224,000 | $ 107,138,000 | $ 104,193,000 | |
Barter Revenue [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Revenue | 0 | 4,026,000 | 3,971,000 | |
Expense | 0 | |||
ASC 606 [Member] | Prior to Adoption of ASC 606 [Member] | Barter Revenue [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Revenue | 3,800,000 | 4,000,000 | 4,000,000 | |
Expense | $ 3,800,000 | $ 4,000,000 | $ 4,000,000 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation Of Revenue [Line Items] | |||
Net revenue | $ 109,224,000 | $ 107,138,000 | $ 104,193,000 |
Revenue from Nexstar | 39,997,000 | 36,546,000 | 42,791,000 |
Barter Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net revenue | 0 | 4,026,000 | 3,971,000 |
Retransmission Compensation [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net revenue | 68,365,000 | 65,854,000 | 56,802,000 |
Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net revenue | $ 862,000 | $ 712,000 | $ 629,000 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2018Stockholder$ / sharesshares | Dec. 31, 2017Stockholder$ / 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 (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax (benefit) expense: | |||
Federal | $ (5) | $ (1,355) | $ 545 |
State | (60) | 304 | 760 |
Current tax (benefit) expense | (65) | (1,051) | 1,305 |
Deferred tax (benefit) expense: | |||
Federal | (1,523) | 4,140 | 9,844 |
State | (454) | 311 | 1,188 |
Deferred tax expense | (1,977) | 4,451 | 11,032 |
Income tax (benefit) expense | $ (2,042) | $ 3,400 | $ 12,337 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax (Benefit) Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective income tax expense reconciliation [Abstract] | |||
Federal income tax at the statutory rate | $ (1,653) | $ 3,162 | $ 11,131 |
State and local taxes, net of federal benefit | (395) | 410 | 1,265 |
Impact of federal tax rate reduction on deferred taxes | 1,220 | ||
Impact of federal tax rate reduction on uncertain tax positions | (1,471) | ||
Other | 6 | 79 | (59) |
Income tax (benefit) expense | $ (2,042) | $ 3,400 | $ 12,337 |
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 | |
Operating Loss Carryforwards [Line Items] | ||||
Statutory federal income tax rate | 21.00% | 35.00% | ||
Tax cuts and jobs act, accounting complete, date | Dec. 31, 2018 | |||
Gross unrecognized tax benefits | $ 2,206,000 | $ 2,206,000 | $ 3,677,000 | $ 3,677,000 |
Accrued interest on unrecognized tax benefits | $ 0 | $ 0 | $ 0 | |
Percentage of operating loss carryforwards limitation on use on taxable income | 80.00% | |||
Operating loss carryforwards subject to limitation | $ 3,400,000 | |||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 57,100,000 | |||
Operating loss carryforwards expiration period | 2033 | |||
State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 14,100,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 12,808 | $ 11,726 |
Rent | 501 | 601 |
Other | 5,139 | 2,621 |
Total deferred tax assets | 18,448 | 14,948 |
Deferred tax liabilities: | ||
Property and equipment | (1,721) | (2,141) |
Goodwill | (4,888) | (4,300) |
Other intangible assets | (833) | (901) |
FCC licenses | (6,706) | (6,098) |
Total deferred tax liabilities | (14,963) | (13,440) |
Other | (815) | |
Net deferred tax assets | $ 3,485 | $ 1,508 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Gross Liability for Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Uncertain tax position liability at the beginning of the year | $ 2,206 | $ 3,677 | $ 3,677 |
Decreases related to tax positions taken during prior periods | 0 | (1,471) | 0 |
Uncertain tax position liability at the end of the year | $ 2,206 | $ 2,206 | $ 3,677 |
FCC Regulatory Matters - Additi
FCC Regulatory Matters - Additional Information (Details) $ in Thousands | Feb. 06, 2019USD ($) | Dec. 31, 2018USD ($)TelevisionStation | Dec. 31, 2017USD ($) |
FCC Regulatory Matters [Line Items] | |||
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 | $ 2,750,000 | ||
Relocation fund included in reimbursement of repack costs | 1,000,000 | ||
Capital expenditures related to station repack | 3,900 | $ 100 | |
Reimbursement from the FCC related to station repack | $ 2,818 | $ 0 | |
Subsequent Event [Member] | |||
FCC Regulatory Matters [Line Items] | |||
Estimated reimbursable costs | $ 1,950,000 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Payments for Un-booked Broadcast Rights Commitments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Broadcast Rights Commitments [Abstract] | |
2019 | $ 953 |
2020 | 375 |
2021 | 37 |
2022 | 2 |
Future minimum payment due for license agreement, total | $ 1,367 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) | Feb. 28, 2019 | Nov. 29, 2011 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 2021 | ||||
Maximum [Member] | Option Agreement To Sell The Assets Of Mission Stations To Nexstar [Member] | |||||
Other Commitments [Abstract] | |||||
Options expiration date year | 2028 | ||||
Guarantee of Nexstar Senior Secured Credit Facility [Member] | |||||
Guarantees of Nexstar Debt [Abstract] | |||||
Maximum guarantee exposure | $ 2,278,000,000 | ||||
Outstanding principal balance repaid | 163,400,000 | ||||
Revolving loan commitment outstanding | 0 | ||||
Guarantee of Nexstar Senior Secured Credit Facility Term Loan B [Member] | |||||
Guarantees of Nexstar Debt [Abstract] | |||||
Current exposure under the guarantee | $ 1,289,000,000 | ||||
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 | $ 60,000,000 | ||||
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 | $ 273,400,000 | ||||
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 | $ 888,200,000 | ||||
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 | $ 825,100,000 | ||||
Maturity date | Jul. 19, 2022 |
Commitments and Contingencies_3
Commitments and Contingencies - Future Minimum Lease Payments under Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases Operating [Abstract] | |
2019 | $ 2,433 |
2020 | 2,447 |
2021 | 1,507 |
2022 | 902 |
2023 | 934 |
Thereafter | 5,733 |
Operating leases future minimum payments due, total | $ 13,956 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Contributions by employer | $ 45,000 | $ 23,000 | $ 20,000 |