Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 27, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | MISSION BROADCASTING, INC. | ||
Entity Central Index Key | 0001142412 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | Yes | ||
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 Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity File Number | 333-62916-02 | ||
Entity Tax Identification Number | 51-0388022 | ||
Entity Address, Address Line One | 901 Indiana Ave | ||
Entity Address, Address Line Two | Suite 375 | ||
Entity Address, City or Town | Wichita Falls | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 76301 | ||
City Area Code | 940 | ||
Local Phone Number | 228-7861 | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 8,686 | $ 10,798 |
Accounts receivable, net of allowance for doubtful accounts of $235 and $222, respectively | 15,069 | 12,857 |
Due from Nexstar Broadcasting, Inc. | 15,232 | 77,521 |
Prepaid expenses and other current assets | 632 | 1,130 |
Total current assets | 39,619 | 102,306 |
Property and equipment, net | 22,722 | 19,867 |
Goodwill | 33,187 | 33,187 |
FCC licenses | 43,102 | 43,102 |
Intangible assets, net | 11,792 | 13,712 |
Other intangible assets, net | 491 | 617 |
Deferred tax assets, net | 3,485 | |
Investment in loan receivable | 48,876 | |
Other noncurrent assets, net | 6,381 | 936 |
Total assets | 205,679 | 216,595 |
Current liabilities: | ||
Current portion of debt | 2,285 | 2,285 |
Accounts payable | 3,144 | 1,832 |
Deferred rent | 721 | |
Operating lease liabilities | 2,009 | |
Interest payable | 771 | 152 |
Accrued capital expenditures | 577 | 1,251 |
Accrued expenses and other current liabilities | 3,544 | 2,317 |
Total current liabilities | 12,330 | 8,558 |
Debt | 220,780 | 222,354 |
Deferred tax liabilities, net | 12,565 | |
Other noncurrent liabilities | 9,804 | 6,820 |
Total liabilities | 255,479 | 237,732 |
Commitments and contingencies (Note 13) | ||
Shareholders' deficit: | ||
Common stock - $1 par value, 1,000 shares authorized, issued and outstanding as of each of December 31, 2019 and 2018 | 1 | 1 |
Subscription receivable | (1) | (1) |
Accumulated deficit | (49,800) | (21,137) |
Total shareholders’ deficit | (49,800) | (21,137) |
Total liabilities and shareholders’ deficit | 205,679 | 216,595 |
Network Affiliation Agreements [Member] | ||
Current assets: | ||
Intangible assets, net | $ 11,301 | $ 13,095 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 235 | $ 222 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net revenue | $ 112,243 | $ 109,224 | $ 107,138 |
Operating expenses (income): | |||
Direct operating expenses, excluding depreciation and amortization | 48,736 | 40,861 | 35,802 |
Selling, general and administrative expenses, excluding depreciation and amortization | 4,475 | 4,965 | 4,153 |
Fees incurred pursuant to local service agreements with Nexstar Broadcasting, Inc. | 61,215 | 55,650 | 35,500 |
Amortization of broadcast rights | 1,493 | 1,584 | 5,645 |
Amortization of intangible assets | 1,919 | 2,129 | 2,392 |
Depreciation | 2,586 | 3,171 | 2,342 |
Reimbursement from the FCC related to station repack | (5,663) | (2,818) | |
Total operating expenses | 114,761 | 105,542 | 85,834 |
(Loss) income from operations | (2,518) | 3,682 | 21,304 |
Interest expense | (10,841) | (11,101) | (10,135) |
Loss on extinguishment of debt | (452) | (2,133) | |
(Loss) income before income taxes | (13,359) | (7,871) | 9,036 |
Income tax (expense) benefit | (15,304) | 2,042 | (3,400) |
Net (loss) income | (28,663) | (5,829) | 5,636 |
Net Broadcast Revenue [Member] | |||
Net revenue | 77,591 | 69,227 | 70,592 |
Advertising Revenue [Member] | Nexstar Broadcasting, Inc. [Member] | |||
Net revenue | $ 34,652 | $ 39,997 | $ 36,546 |
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, 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 | |||
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 | ||
Net (loss) income | $ (28,663) | (28,663) | ||
Balance at Dec. 31, 2019 | $ (49,800) | $ 1 | $ (1) | $ (49,800) |
Balance (in shares) at Dec. 31, 2019 | 1,000 | 1,000 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities: | ||||
Net (loss) income | $ (28,663) | $ (5,829) | $ 5,636 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Deferred income tax (benefit) expense | 16,046 | (1,977) | 4,451 | |
Provision for bad debt | 130 | 97 | 86 | |
Depreciation of property and equipment | 2,586 | 3,171 | 2,342 | |
Amortization of intangible assets | 1,919 | 2,129 | 2,392 | |
Amortization of debt financing costs and debt discount | 721 | 764 | 750 | |
Amortization of broadcast rights | 1,493 | 1,584 | 5,645 | |
Amortization of broadcast rights | 1,619 | |||
Payments for broadcast rights | (1,495) | (1,591) | (1,632) | |
Loss on asset disposal | 3 | 4 | 75 | |
Loss on extinguishment of debt | 452 | 2,133 | ||
Deferred gain recognition | (660) | (198) | (198) | |
Spectrum repack reimbursements from the FCC | (5,663) | (2,818) | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (2,342) | 1,763 | (2,469) | |
Prepaid expenses and other current assets | 408 | 282 | (818) | |
Other noncurrent assets | (306) | 8 | (7) | |
Accounts payable, accrued expenses and other current liabilities | 3,171 | (8,030) | 4,255 | |
Other noncurrent liabilities | (400) | (1,819) | ||
Due from Nexstar Broadcasting, Inc. | 13,279 | 15,399 | (12,100) | |
Net cash provided by operating activities | 627 | 4,810 | 4,696 | |
Cash flows from investing activities: | ||||
Purchases of property and equipment | (6,117) | (4,044) | (700) | |
Spectrum repack reimbursements from the FCC | 5,663 | 2,818 | ||
Investment in a loan receivable | (48,876) | |||
Payment for acquisition | (800) | |||
Proceeds from disposals of property and equipment | 100 | |||
Net cash used in investing activities | (49,330) | (1,226) | (1,400) | |
Cash flows from financing activities: | ||||
Proceeds from the issuance of long term debt | 230,609 | |||
Inter-company payments | 48,876 | |||
Repayments of long-term debt | (2,285) | (2,310) | (227,051) | |
Payments for debt financing costs | (3,804) | |||
Net cash provided by (used in) financing activities | 46,591 | (2,310) | (246) | |
Net (decrease) increase in cash and cash equivalents | (2,112) | 1,274 | 3,050 | |
Cash and cash equivalents at beginning of period | 10,798 | 9,524 | 6,474 | |
Cash and cash equivalents at end of period | 8,686 | 10,798 | 9,524 | |
Supplemental information: | ||||
Interest paid | 9,505 | 10,953 | 9,639 | |
Income tax (refunded) paid, net | (1,147) | 221 | 1,101 | |
Non-cash investing and financing activities | ||||
Accrued purchases of property and equipment | 577 | $ 1,251 | $ 707 | |
Right-of-use assets obtained in exchange for operating lease obligations | [1] | $ 6,450 | ||
[1] | The entire amount represents transition adjustment for the adoption of ASC 842. |
Organization and Business Opera
Organization and Business Operations | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Business Operations | Note 1: Organization and Business Operations Mission Broadcasting, Inc. (“Mission” or the “Company”), a Delaware corporation, is a television broadcasting focused on the acquisition, development and operation of television stations and interactive community websites in medium-sized markets in the United States. As of December 31, 2019, Mission owned and operated 19 full power television stations, affiliated with ABC, FOX, NBC, CBS, The CW 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 27, 2020, 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 27, 2020, 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, 2019, 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. On November 29, 2019, Nexstar assigned its guarantee obligation of Marshall Broadcasting Group, Inc.’s (“Marshall”) credit agreement to Mission. As a result of the assignment, Mission became the guarantor of Marshall’s debt and Nexstar is no longer a guarantor. Subsequent to the assignment of guarantee, Nexstar made a partial payment of Mission’s outstanding receivable from Nexstar amounting to $50.0 million to facilitate Mission’s funding of the guarantee. The payment of Nexstar to Mission was included in the “Due from Nexstar Broadcasting, Inc.” in the accompanying Balance Sheets. On November 29, 2019, Marshall defaulted on the payment of principal and interest and other payments due to its third-party bank lenders. Following the default, Mission paid the outstanding principal balances of Marshall’s Term Loan A and revolving credit facility of $43.2 million and $5.6 million, respectively, plus accrued and unpaid interest using the cash received from Nexstar. After making the payment, Mission became Marshall’s new lender under the same Marshall credit agreement. Mission recognized a loan receivable from Marshall totaling $48.9 million which is presented as “Investment in loan receivable” in the accompanying Balance Sheets as a result of these transactions. In December 2019, Marshall filed a voluntary petition for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. Marshall may not be able to make its principal or interest payments to Mission under the credit agreement when due or at all. Marshall’s failure to satisfy its debt obligations to Mission may have an adverse effect on the Company’s business and results of operations. The Company believes its loan receivable from Marshall is collectible. Mission will continue to evaluate future developments on Marshall’s bankruptcy process. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 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, 2019 with Nexstar: Service Agreements Full Power Stations TBA Only WFXP, KHMT and KFQX SSA & JSA 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. Basis of Presentation Certain prior year financial statement amounts have been reclassified to conform to the current year presentation. 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, distribution 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 The Company adopted the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”) 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. 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. 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 online video distributors (“OVDs”) 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, distribution revenue, 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). Adjustments associated with the resolution of such estimates have, historically, been inconsequential. 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 OVDs generally have a three-year 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. 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 year ended December 31, 2017, barter revenue (and the related barter expense) was $4.0 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, (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 9 for additional disclosures on revenue from contracts with customers. Leases As discussed in the “Recent Accounting Pronouncements” Section below, the Company adopted ASU No. 2016-02, Leases (Topic 842) and all related amendments issued by the FASB. Accounting Standards Codification (“ASC”) 842 establishes a comprehensive new lease accounting model that requires the recording of assets and liabilities arising from operating leases on the balance sheet accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. The standard was issued to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flow arising from leases. The Company adopted this standard effective January 1, 2019 using the optional transition method. The most significant impact was the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases. Financial information for reporting periods beginning after January 1, 2019 is presented under ASC 842, while comparative financial information has not been adjusted and continues to be reported in accordance with the Company’s historical accounting policy for lease contracts prior to the adoption of ASC 842. The Company has elected the “package of practical expedients” permitted under the transition guidance within ASC 842, which permits the Company to carry forward the historical lease classification and not reassess whether any expired or existing contracts are or contain leases. In addition, the Company is not required to reassess initial direct costs for any existing leases. The Company did not elect the land easements and the use of hindsight practical expedients in determining the lease term for existing leases. ASC 842 also provides practical expedients for an entity’s ongoing accounting. The Company has elected the short-term lease recognition exemption for all leases that qualify. As a result, for those leases with a term of less than 12 months, it will not recognize ROU assets or lease liabilities. The vast majority of the Company’s television station leases are comprised of fixed lease payments, with a small percentage of television station lease payments that are tied to a rate or index which may be subject to variability. For these leases, the calculation of the present value of future minimum lease payments is the base rate as of the later of (i) when the television station was acquired by the Company, or (ii) the commencement date of the lease agreement. Certain real estate leases also include executory costs such as common area maintenance (non-lease component), as well as property insurance and property taxes (non-components). These are not significant and the Company historically excluded these executory costs from its future minimum lease payments under its historical policy prior to the adoption of ASC 842. As such, the executory costs were excluded from the calculation of ROU assets and lease liabilities associated with operating leases upon transition. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. The discount rate represents a risk-adjusted rate on a secured basis, and is the rate at which the Company would borrow funds to satisfy the scheduled lease liability payment streams commensurate with the lease term. On January 1, 2019, the discount rate used on existing leases at adoption was determined based on the remaining lease term using available data as of that date. The Company recognized operating lease ROU assets on its Balance Sheet as of January 1, 2019 of $6.5 million, inclusive of the present value of remaining future operating lease payments of $11.0 million and reclassifications of certain operating lease related assets and liabilities under the Company’s historical accounting policy prior to the adoption of ASC 842 such as deferred rent, short-term prepaid expenses and other accruals. These are summarized in the table below (in thousands). The adoption did not result in a cumulative impact on retained earnings as of January 1, 2019. ASC 842 Adoption Adjustments Present Value of Remaining Reclassifications of Operating Lease Related Balance Sheet Items to Operating Lease Right-of-Use Assets Impact on Balance Sheets December 31, 2018 Operating Lease Payments as of January 1, 2019 Deferred Rent Other Total January 1, 2019 Prepaid expenses and other current assets $ 1,130 $ - $ - $ (77 ) $ (77 ) $ 1,053 Other noncurrent assets, net 936 10,957 (4,175 ) (332 ) 6,450 7,386 Total Assets 216,595 10,957 (4,175 ) (409 ) 6,373 222,968 Other current liabilities 8,558 1,802 (531 ) (198 ) 1,073 9,631 Other noncurrent liabilities 6,820 9,155 (3,644 ) (211 ) 5,300 12,120 Total Liabilities 237,732 10,957 (4,175 ) (409 ) 6,373 244,105 After transition to ASC 842, the Company determines if an arrangement is a lease at inception. The ROU assets arising from operating leases are included in other noncurrent assets, current operating lease liabilities and other noncurrent liabilities in the accompanying Balance Sheets. Operating lease ROU assets and operating lease liabilities that are recognized after the adoption of ASC 842 are based on the present value of the future minimum lease payments over the lease term at the commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and executory costs (not significant). The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. When determining if a renewal option is reasonably certain of being exercised, the Company considers several factors, including but not limited to the significance of leasehold improvements incurred on the property, whether the asset is difficult to replace, or specific characteristics unique to the particular lease that would make it reasonably certain that the Company would exercise such option. In most cases, the Company has concluded that renewal and early termination options are not reasonably certain of being exercised by the Company (and thus not included in its ROU asset and lease liability) unless there is an economic, financial or business reason to do so. As most of the Company’s leases do not provide an implicit rate, the incremental borrowing rate was used based on the information available at the commencement date in determining the present value of future lease payments. The discount rate represents a risk-adjusted rate on a secured basis and is the rate at which the Company would borrow funds to satisfy the scheduled lease liability payment streams commensurate with the lease term. For new or renewed leases starting in 2019, the discount rate is determined using available data at lease commencement and based on the lease term including any reasonably certain renewal periods. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. In rare circumstances, the Company may enter into finance leases for specific equipment or real estate used in its operations, in which the lease term is for the major part of the remaining economic life of the underlying asset or the present value of the lease payments equals or exceeds substantially all of the estimated fair value of the underlying asset. The Company will record its finance leases within property, plant and equipment, other current liabilities and other noncurrent liabilities on the accompanying Balance Sheets. See Note 8 for additional disclosures on leases as of December 31, 2019. 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 if acquired 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 estimated fair value of an FCC license is calculated using a discounted cash flow model referred to as the Greenfield Method. The Greenfield Method attempts to isolate the income that is attributable to the license alone. This approach is based upon modeling a hypothetical start-up station and building it up to a normalized operation that, by design, lacks an affiliation with a network (commonly known as an independent station), lacks inherent goodwill and whose other assets have essentially been added as part of the build-up process. The Greenfield Method assumes annual cash flows over a projection period model. Inputs to this model include, but are not limited to, (i) a four-year build-up period for a start-up station to reach a normalized state of operations, (ii) market long-term growth rate over a projection period, (iii) estimated market revenue share for a typical market participant without a network affiliation, (iv) estimated profit margins based on industry data, (v) capital expenditures based on the size of market and the type of station being constructed, (vi) estimated tax rates in the appropriate jurisdiction, and (vii) an estimated discount rate using a weighted average cost of capital analysis. The Greenfield Method also includes an estimated terminal value by discounting an estimated annual cash flow with an estimated long-term growth rate. The assumptions used in estimating the fair value of a network affiliation agreement are similar to those used in the valuation of an FCC license. The Greenfield Method is also utilized in the valuation of network affiliation agreements except that the estimated market revenue share, estimated profit margins, capital expenditures and other assumptions reflect a market participant premium based on the programming of a network affiliate relative to an independent station. This approach would result in an estimated fair value of the collective FCC license and a network affiliation agreement. The excess of the estimated fair value in this model over the estimated value of an FCC license of an independent station under the Greenfield Method represents the estimated fair value of a network affiliation agreement. The excess of the purchase price over the fair value of identifiable 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 goodwill impairment tests because of the stations’ 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 the Greenfield Method of 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 the aggregated reporting unit 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, 2019 and 2018, debt financing costs related to the term loan of $3.2 million and $3.9 million, respectively, were presented as a direct deduction from the carrying amount of debt. 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, 2019, 2018 and 2017, 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 February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The Company adopted this standard and all related amendments effective January 1, 2019 using the optional transition method. The standard had a material impact on the Company’s Balance Sheets but did not impact its operating results, cash flows or equity. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. The adoption did not result in a cumulative impact on retained earnings as of January 1, 2019. See Leases above for the Company’s updated accounting policy and Note 8 for expanded disclosures. New Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-1 |
Local Service Agreements with N
Local Service Agreements with Nexstar | 12 Months Ended |
Dec. 31, 2019 | |
Local Service Agreements [Abstract] | |
Local Service Agreements with Nexstar | Note 3: 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 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 SSAs is a flat fee 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, 2019: 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 5/31/35 $182 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 $933 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 $338 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 $247 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 $207 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WAWV Terre Haute, IN SSA JSA 6/30/25 5/08/23 $81 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KCIT/KCPN-LP Amarillo, TX SSA JSA 6/30/25 4/30/35 $242 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KAMC Lubbock, TX SSA JSA 6/30/25 2/16/35 $333 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KOLR Springfield, MO SSA JSA 6/30/25 2/16/35 $776 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WUTR Utica, NY SSA JSA 6/30/25 3/31/24 $101 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WTVO Rockford, IL SSA JSA 6/30/25 10/31/24 $353 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 $393 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WTVW Evansville, IN SSA JSA 6/30/25 8/01/21 $212 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 1/01/21 $635 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WVNY Burlington-Plattsburgh, VT SSA JSA 6/30/25 3/01/21 $313 thousand per month paid to Nexstar 70% of net revenue received from Nexstar |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 4: Property and Equipment Property and equipment consisted of the following, as of December 31 (dollars in thousands): Estimated useful life, in years 2019 2018 Buildings and improvements 39 $ 8,420 $ 8,396 Land N/A 1,632 1,632 Leasehold improvements term of lease 70 70 Studio and transmission equipment 5-15 36,210 36,074 Computer equipment 3-5 320 320 Furniture and fixtures 7 832 832 Vehicles 5 611 701 Construction in progress N/A 8,755 5,423 56,850 53,448 Less: accumulated depreciation (34,128 ) (33,581 ) Property and equipment, net $ 22,722 $ 19,867 The increase in property and equipment (most notably construction in progress) primarily relates to spectrum repack projects , routine purchases of property and equipment, less disposals. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Note 5: Intangible Assets and Goodwill Intangible assets subject to amortization consisted of the following, as of December 31 (dollars in thousands): Estimated 2019 2018 useful life, Accumulated Accumulated in years Gross Amortization Net Gross Amortization Net Network affiliation agreements 15 $ 86,248 $ (74,947 ) $ 11,301 $ 86,248 $ (73,153 ) $ 13,095 Other definite-lived intangible assets 1-15 15,681 (15,190 ) 491 15,681 (15,064 ) 617 Other intangible assets $ 101,929 $ (90,137 ) $ 11,792 $ 101,929 $ (88,217 ) $ 13,712 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 2019 or 2018. 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, 2019 (in thousands): 2020 $ 1,518 2021 1,517 2022 1,517 2023 1,444 2024 1,330 Thereafter 4,466 $ 11,792 The carrying amounts of goodwill and FCC licenses for the years ended December 31, 2019 and 2018 are as follows (in thousands): Goodwill FCC Licenses Accumulated Accumulated Gross Impairment Net Gross Impairment Net Balances as of December 31, 2018 $ 34,737 $ (1,550 ) $ 33,187 $ 53,799 $ (10,697 ) $ 43,102 Balances as of December 31, 2019 $ 34,737 $ (1,550 ) $ 33,187 $ 53,799 $ (10,697 ) $ 43,102 As discussed in Note 2, the Company has one aggregated broadcast business reporting unit for purposes of annual goodwill impairment review as of December 31, 2019. The Company’s annual impairment review of FCC licenses is performed at the station market level. In the fourth quarter of 2019, 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 aggregated reporting unit and FCC licenses would sufficiently exceed their respective carrying amounts. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Note 6: Accrued Expenses and Other Current Liabilities Accrued expenses consisted of the following as of December 31 (in thousands): 2019 2018 Network affiliation fees $ 299 $ 279 Compensation and related taxes 293 262 Current portion of broadcast rights payable 312 325 Other 2,640 1,451 $ 3,544 $ 2,317 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 7: Debt Long-term debt consisted of the following, as of December 31 (in thousands): 2019 2018 Term loans $ 226,242 $ 228,527 Less: unamortized financing costs and discount (3,177 ) (3,888 ) Total outstanding debt 223,065 224,639 Less: current portion (2,285 ) (2,285 ) Long-term debt, net of current portion $ 220,780 $ 222,354 Senior Secured Credit Facility As of December 31, 2019 and 2018, Mission’s Term Loan B had outstanding principal balances of $226.2 million and $228.5 million, respectively, and none outstanding under its revolving credit facility as of each of the years then ended. The Term Loan B has a maturity date of January 17, 2024 while the revolving credit facility has a maturity date of October 26, 2023. The Mission Term Loan B is payable in consecutive quarterly installments of 0.25%, with the remainder due at maturity. During the year ended December 31, 2019, Mission repaid scheduled maturities of $2.3 million of its Term Loan B. 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 B was 4.01% and 4.77% as of December 31, 2019 and 2018, respectively. The interest rate on Mission’s revolving credit facility was 3.51% and 4.27% as of December 31, 2019 and 2018, respectively. 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, 2019, 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 $1.785 billion 5.625% senior unsecured notes due 2027 (the “5.625% Notes due 2027”) issued by Nexstar and the $900.0 million 5.625% senior unsecured notes due 2024 (the “5.625% Notes due 2024”) 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 due 2027 and the 5.625% Notes due 2024 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, and the aggregate principal amount outstanding under the 5.625% Notes due 2027 and the 5.625% Notes due 2024. As of December 31, 2019, Nexstar had $1.785 billion aggregate principal amount outstanding under its 5.625% Notes due 2027, $900.0 million aggregate principal amount outstanding under its 5.625% Notes due 2024 and a maximum commitment of $5.830 billion under its senior secured credit facility, of which $4.116 billion in Term Loan B (including new Term Loan B), $1.450 billion in Term Loan A (including new Term Loan A), and $23.7 million of standby letters of credit were outstanding. As discussed in Note 1 —Organization and Business Operations n November 29, 2019, Nexstar assigned its guarantee obligation of Marshall’s credit agreement to Mission. As a result of the assignment, Mission became the guarantor of Marshall’s debt and Nexstar is no longer a guarantor. Subsequent to the assignment of guarantee, Nexstar made a partial payment of Mission’s outstanding receivable from Nexstar amounting to $50.0 million to facilitate Mission’s funding of the guarantee. The payment of Nexstar to Mission was included in the “Due from Nexstar Broadcasting, Inc.” in the accompanying Balance Sheets. On November 29, 2019, Marshall defaulted on the payment of principal and interest and other payments due to its third-party bank lenders. Following the default, Mission paid the outstanding principal balances of Marshall’s Term Loan A and revolving credit facility of $43.2 million and $5.6 million, respectively, plus accrued and unpaid interest using the cash received from Nexstar. After making the payment, Mission became Marshall’s new lender under the same Marshall credit agreement. Mission recognized a loan receivable from Marshall totaling $48.9 million which is presented as “Investment in loan receivable” in the accompanying Balance Sheets as a result of these transactions. In December 2019, Marshall filed a voluntary petition for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. Marshall may not be able to make its principal or interest payments to Mission under the credit agreement when due or at all. Marshall’s failure to satisfy its debt obligations to Mission may have an adverse effect on the Company’s business and results of operations. 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, 2019. 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): 2019 2018 Carrying Fair Carrying Fair Amount Value Amount Value Term loans $ 226,242 $ 227,154 $ 224,639 $ 220,450 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, 2019 are summarized as follows (in thousands): 2020 $ 2,285 2021 2,285 2022 2,285 2023 2,285 Thereafter 217,102 $ 226,242 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 8: Leases The Company as a Lessee The Company has operating leases for office space, tower facilities, antenna sites, studio and other real estate properties and equipment. The Company’s leases have remaining lease terms of 4 months to 13 years, some of which may include options to extend the leases from 5 to 25 years, and some of which may include options to terminate the leases within one year. The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The components of lease expense during the year ended December 31, 2019 was $1.7 million of operating lease cost included in Direct operating expenses, excluding depreciation and amortization, in the accompanying Statements of Operations. The following table summarizes the components of our lease right-of-use assets and liabilities at December 31, 2019 (in thousands): (In thousands) Balance Sheet Classification December 31, 2019 Operating Leases Operating lease right-of-use assets, net Other noncurrent assets, net $ 5,275 Current lease liabilities Current operating lease liabilities $ 2,009 Noncurrent lease liabilities Other noncurrent liabilities $ 7,114 Other information related to leases as of December 31, 2019 was as follows (in thousands, except lease term and discount rate): Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,698 Weighted Average Remaining Lease Term 8 Weighted Average Discount Rate 5.33 % Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows (in thousands): 2020 $ 2,434 2021 1,494 2022 890 2023 922 2024 921 Thereafter 4,811 Total future minimum lease payments 11,472 Less imputed interest (2,349 ) Total $ 9,123 The Company as a Lessor The Company has various arrangements under which it is the lessor for the use of its tower space. These leases meet the criteria for operating lease classification, but the associated lease income is not material. As part of the adoption, the Company elected the practical expedient to combine lease and non-lease components in its lessor arrangements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 9: Revenue 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, 2019 and December 31, 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, 2019, 2018 and 2017 under ASC 606. Comparative 2017 revenues are presented in accordance with the Company’s historical accounting standard prior to the adoption of ASC 606 (in thousands): 2019 2018 2017 Distribution revenue $ 76,326 $ 68,365 $ 65,854 Revenue from Nexstar 34,652 39,997 36,546 Other 1,265 862 712 Barter revenue - - 4,026 Net revenue $ 112,243 $ 109,224 $ 107,138 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 OVDs in return for the consent to the retransmission of the signals of its television stations. Distribution revenue 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. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Common Stock | Note 10: 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, 2019 and 2018 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11: Income Taxes The income tax (benefit) expense consisted of the following components for the years ended December 31 (in thousands): 2019 2018 2017 Current tax (benefit) expense: Federal $ (759 ) $ (5 ) $ (1,355 ) State 17 (60 ) 304 (742 ) (65 ) (1,051 ) Deferred tax expense (benefit): Federal 15,557 (1,523 ) 4,140 State 489 (454 ) 311 16,046 (1,977 ) 4,451 Income tax expense (benefit) $ 15,304 $ (2,042 ) $ 3,400 The income tax expense (benefit) 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): 2019 2018 2017 Income tax expense (benefit) at 35% statutory federal rate $ (2,805 ) $ (1,653 ) $ 3,162 State and local taxes, net of federal benefit (527 ) (395 ) 410 Impact of federal tax rate reduction on deferred taxes - - 1,220 Impact of federal tax rate reduction on uncertain tax positions - - (1,471 ) Other 76 6 79 Change in beginning of year valuation allowance 18,560 - - Income tax (benefit) expense $ 15,304 $ (2,042 ) $ 3,400 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): 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 14,321 $ 12,808 Rent - 501 Other 6,974 5,139 Total 21,295 18,448 Valuation allowance (18,560 ) - Total deferred tax assets 2,735 18,448 Deferred tax liabilities: Property and equipment (1,855 ) (1,721 ) Goodwill (6,279 ) (4,888 ) Other intangible assets (43 ) (833 ) FCC licenses (7,260 ) (6,706 ) Other 137 (815 ) Total deferred tax liabilities (15,300 ) (14,963 ) Net deferred tax (liabilities) assets $ (12,565 ) $ 3,485 As of December 31, 2019, the Company had a valuation allowance related to deferred tax assets of $18.6 million which was not likely to be realized, an increase of $18.6 million from December 31, 2018. During the year ended December 31, 2019, the valuation allowance increased primarily due to the Company’s belief, based upon consideration of the positive and negative evidence, that certain deferred tax assets of the Company were not likely to be realized. The primary negative evidence considered was the net loss recorded in 2019. As of December 31, 2019, the Company’s reserve for uncertain tax positions totaled approximately $2.2 million. For the years ended December 31, 2019, 2018 and 2017 there were $2.2 million, $2.2 million and $2.2 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): 2019 2018 2017 Uncertain tax position liability at the beginning of the year $ 2,206 $ 2,206 $ 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 $ 2,206 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, 2019, 2018 and 2017 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 2015. 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, 2019, the Company has federal NOLs available of $63.1 million and post-apportionment state NOLs available of $16.7 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 and $7.4 million generated in 2019 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, 2019 | |
Risks And Uncertainties [Abstract] | |
FCC Regulatory Matters | Note 12: 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 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 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 television JSA relationships attributable interests and (6) defined a category of sharing agreements designated as SSAs between commercial television 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 (the “eight voices test”), (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. On September 23, 2019, however, the Third Circuit issued an opinion vacating the Reconsideration Order on the ground that the FCC had failed to adequately analyze the effect of the Reconsideration Order’s deregulatory rule changes on minority and woman ownership of broadcast stations. The Third Circuit later denied petitions for en banc 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 were filed 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”, 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, which became effective again on June 15, 2017. A federal court of appeals dismissed a petition for review of the discount’s reinstatement in July 2018. In December 2017, the FCC initiated a comprehensive rulemaking to evaluate the UHF discount together with the national ownership limit. Comments and reply comments were filed in 2018, and the proceeding remains open. 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 their spectrum in exchange for consideration, and certain wireless broadband providers and other entities submitted successful bids to acquire the relinquished television spectrum. 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 must cease operating on their former channels, on a rolling schedule ending in July 2020. Congress has allocated up to an industry-wide total of $ 2.75 billion to reimburse television broadcasters, MVPDs and other parties for costs reasonably incurred due to the repack. This allocation includes $ 1.0 billion added to the TV Broadcaster Relocation Fund as part of the Consolidated Appropriations Act, 2018. Broadcasters, MVPDs and other parties have submitted to the FCC estimates of their reimbursable costs and, in many cases, subsequent requests for reimbursement of those costs. As of December 6, 2019, verified cost estimates were approximately $ 1.95 billion , with 79 percent of the repack complete and reimbursements still to be made to certain low power television and FM radio stations affected by the repack. During the year s ended December 31, 201 9 and 201 8 , the Company spent a total of $ 5.6 million and $ 3.9 million, respectively, in capital expenditures related to station repack which were recorded as assets under the property and equipment caption in the accompanying Balance Sheets. During the years ended December 31, 2019 and 2018, the Company received $ 5.7 million and $ 2.8 million , respectively, in reimbursements from the FCC related to these expenditures which were recorded as operating income in the accompanying S tatements of Operations. There were no reimbursements received related to station repack in 2017 . The Company cannot determine if the FCC will be able to fully reimburse 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 repack 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, OVDs have begun streaming broadcast programming over the Internet. In September 2014, the U.S. Supreme Court held that an OVD’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 OVDs 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 OVDs. Comments and reply comments were filed in 2015. Although the FCC has not classified OVDs as MVPDs to date, several OVDs 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, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13: 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, 2019 (in thousands): 2020 $ 908 2021 411 2022 191 2023 33 $ 1,543 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 5.625% Notes due 2027 and Nexstar’s 5.625% Notes due 2024. The 5.625% Notes due 2027 and the 5.625% Notes due 2024 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, and the aggregate principal amounts outstanding under the 5.625% Notes due 2027 and the 5.625% Notes due 2024. As of December 31, 2019, Nexstar had $1.785 billion aggregate principal amount outstanding under its 5.625% Notes due 2027, $900.0 million aggregate principal amount outstanding under its 5.625% Notes due 2024 and a maximum commitment of $5.830 billion under its senior secured credit facility, of which $4.116 billion in Term Loan B (including new Term Loan B), $1.450 billion in Term Loan A (including new Term Loan A), and $23.7 million of standby letters of credit were outstanding. Nexstar also has a $139.7 million revolving loan commitment, of which none was outstanding as of December 31, 2019. On January 30, 2020 and February 28, 2020, Nexstar prepaid $30.0 million and $100.0 million, respectively, of the outstanding principal balance under its old 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, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | Note 14: 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 $55,000, $45,000 and $23,000 to the Plan for the years ended December 31, 2019, 2018 and 2017, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. |
Basis of Presentation | Basis of Presentation Certain prior year financial statement amounts have been reclassified to conform to the current year presentation. |
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, distribution 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 The Company adopted the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”) 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. 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. 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 online video distributors (“OVDs”) 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, distribution revenue, 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). Adjustments associated with the resolution of such estimates have, historically, been inconsequential. 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 OVDs generally have a three-year 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. 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 year ended December 31, 2017, barter revenue (and the related barter expense) was $4.0 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, (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 9 for additional disclosures on revenue from contracts with customers. |
Leases | Leases As discussed in the “Recent Accounting Pronouncements” Section below, the Company adopted ASU No. 2016-02, Leases (Topic 842) and all related amendments issued by the FASB. Accounting Standards Codification (“ASC”) 842 establishes a comprehensive new lease accounting model that requires the recording of assets and liabilities arising from operating leases on the balance sheet accompanied by enhanced qualitative and quantitative disclosures in the notes to the financial statements. The standard was issued to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flow arising from leases. The Company adopted this standard effective January 1, 2019 using the optional transition method. The most significant impact was the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases. Financial information for reporting periods beginning after January 1, 2019 is presented under ASC 842, while comparative financial information has not been adjusted and continues to be reported in accordance with the Company’s historical accounting policy for lease contracts prior to the adoption of ASC 842. The Company has elected the “package of practical expedients” permitted under the transition guidance within ASC 842, which permits the Company to carry forward the historical lease classification and not reassess whether any expired or existing contracts are or contain leases. In addition, the Company is not required to reassess initial direct costs for any existing leases. The Company did not elect the land easements and the use of hindsight practical expedients in determining the lease term for existing leases. ASC 842 also provides practical expedients for an entity’s ongoing accounting. The Company has elected the short-term lease recognition exemption for all leases that qualify. As a result, for those leases with a term of less than 12 months, it will not recognize ROU assets or lease liabilities. The vast majority of the Company’s television station leases are comprised of fixed lease payments, with a small percentage of television station lease payments that are tied to a rate or index which may be subject to variability. For these leases, the calculation of the present value of future minimum lease payments is the base rate as of the later of (i) when the television station was acquired by the Company, or (ii) the commencement date of the lease agreement. Certain real estate leases also include executory costs such as common area maintenance (non-lease component), as well as property insurance and property taxes (non-components). These are not significant and the Company historically excluded these executory costs from its future minimum lease payments under its historical policy prior to the adoption of ASC 842. As such, the executory costs were excluded from the calculation of ROU assets and lease liabilities associated with operating leases upon transition. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. The discount rate represents a risk-adjusted rate on a secured basis, and is the rate at which the Company would borrow funds to satisfy the scheduled lease liability payment streams commensurate with the lease term. On January 1, 2019, the discount rate used on existing leases at adoption was determined based on the remaining lease term using available data as of that date. The Company recognized operating lease ROU assets on its Balance Sheet as of January 1, 2019 of $6.5 million, inclusive of the present value of remaining future operating lease payments of $11.0 million and reclassifications of certain operating lease related assets and liabilities under the Company’s historical accounting policy prior to the adoption of ASC 842 such as deferred rent, short-term prepaid expenses and other accruals. These are summarized in the table below (in thousands). The adoption did not result in a cumulative impact on retained earnings as of January 1, 2019. ASC 842 Adoption Adjustments Present Value of Remaining Reclassifications of Operating Lease Related Balance Sheet Items to Operating Lease Right-of-Use Assets Impact on Balance Sheets December 31, 2018 Operating Lease Payments as of January 1, 2019 Deferred Rent Other Total January 1, 2019 Prepaid expenses and other current assets $ 1,130 $ - $ - $ (77 ) $ (77 ) $ 1,053 Other noncurrent assets, net 936 10,957 (4,175 ) (332 ) 6,450 7,386 Total Assets 216,595 10,957 (4,175 ) (409 ) 6,373 222,968 Other current liabilities 8,558 1,802 (531 ) (198 ) 1,073 9,631 Other noncurrent liabilities 6,820 9,155 (3,644 ) (211 ) 5,300 12,120 Total Liabilities 237,732 10,957 (4,175 ) (409 ) 6,373 244,105 After transition to ASC 842, the Company determines if an arrangement is a lease at inception. The ROU assets arising from operating leases are included in other noncurrent assets, current operating lease liabilities and other noncurrent liabilities in the accompanying Balance Sheets. Operating lease ROU assets and operating lease liabilities that are recognized after the adoption of ASC 842 are based on the present value of the future minimum lease payments over the lease term at the commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and executory costs (not significant). The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. When determining if a renewal option is reasonably certain of being exercised, the Company considers several factors, including but not limited to the significance of leasehold improvements incurred on the property, whether the asset is difficult to replace, or specific characteristics unique to the particular lease that would make it reasonably certain that the Company would exercise such option. In most cases, the Company has concluded that renewal and early termination options are not reasonably certain of being exercised by the Company (and thus not included in its ROU asset and lease liability) unless there is an economic, financial or business reason to do so. As most of the Company’s leases do not provide an implicit rate, the incremental borrowing rate was used based on the information available at the commencement date in determining the present value of future lease payments. The discount rate represents a risk-adjusted rate on a secured basis and is the rate at which the Company would borrow funds to satisfy the scheduled lease liability payment streams commensurate with the lease term. For new or renewed leases starting in 2019, the discount rate is determined using available data at lease commencement and based on the lease term including any reasonably certain renewal periods. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. In rare circumstances, the Company may enter into finance leases for specific equipment or real estate used in its operations, in which the lease term is for the major part of the remaining economic life of the underlying asset or the present value of the lease payments equals or exceeds substantially all of the estimated fair value of the underlying asset. The Company will record its finance leases within property, plant and equipment, other current liabilities and other noncurrent liabilities on the accompanying Balance Sheets. See Note 8 for additional disclosures on leases as of December 31, 2019. |
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 if acquired 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 estimated fair value of an FCC license is calculated using a discounted cash flow model referred to as the Greenfield Method. The Greenfield Method attempts to isolate the income that is attributable to the license alone. This approach is based upon modeling a hypothetical start-up station and building it up to a normalized operation that, by design, lacks an affiliation with a network (commonly known as an independent station), lacks inherent goodwill and whose other assets have essentially been added as part of the build-up process. The Greenfield Method assumes annual cash flows over a projection period model. Inputs to this model include, but are not limited to, (i) a four-year build-up period for a start-up station to reach a normalized state of operations, (ii) market long-term growth rate over a projection period, (iii) estimated market revenue share for a typical market participant without a network affiliation, (iv) estimated profit margins based on industry data, (v) capital expenditures based on the size of market and the type of station being constructed, (vi) estimated tax rates in the appropriate jurisdiction, and (vii) an estimated discount rate using a weighted average cost of capital analysis. The Greenfield Method also includes an estimated terminal value by discounting an estimated annual cash flow with an estimated long-term growth rate. The assumptions used in estimating the fair value of a network affiliation agreement are similar to those used in the valuation of an FCC license. The Greenfield Method is also utilized in the valuation of network affiliation agreements except that the estimated market revenue share, estimated profit margins, capital expenditures and other assumptions reflect a market participant premium based on the programming of a network affiliate relative to an independent station. This approach would result in an estimated fair value of the collective FCC license and a network affiliation agreement. The excess of the estimated fair value in this model over the estimated value of an FCC license of an independent station under the Greenfield Method represents the estimated fair value of a network affiliation agreement. The excess of the purchase price over the fair value of identifiable 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 goodwill impairment tests because of the stations’ 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 the Greenfield Method of 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 the aggregated reporting unit 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, 2019 and 2018, debt financing costs related to the term loan of $3.2 million and $3.9 million, respectively, were presented as a direct deduction from the carrying amount of debt. |
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, 2019, 2018 and 2017, 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 February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The Company adopted this standard and all related amendments effective January 1, 2019 using the optional transition method. The standard had a material impact on the Company’s Balance Sheets but did not impact its operating results, cash flows or equity. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. The adoption did not result in a cumulative impact on retained earnings as of January 1, 2019. See Leases above for the Company’s updated accounting policy and Note 8 for expanded disclosures. New Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020 (January 1, 2021 for the Company). Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on its financial statements. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which provided certain improvements to ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” and ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” As the Company has adopted ASU 2016-01 and ASU 2017-12, the improvements in ASU 2019-04 are effective for fiscal years beginning after December 15, 2019, and the interim periods within those fiscal years. Early adoption is permitted. The Company expects to adopt ASU 2016-13 in the first quarter of 2020, as described below, and the improvements in ASU 2019-04 will be adopted concurrently. The Company is currently evaluating the impact of adopting ASU 2019-04 on its financial statements. In March 2019, the FASB issued ASU 2019-02, “Entertainment-Films-Other Assets-Film Costs (Subtopic 926-20) and Entertainment-Broadcasters-Intangibles-Goodwill and Other (Subtopic 920-350).” The standard requires production costs of episodic television series to be capitalized as incurred, which aligns the guidance with the accounting for production costs of films. In addition, once ASU 2019-02 is effective, capitalized costs associated with films and license agreements will be tested for impairment based on the lower of unamortized cost or fair value, as opposed to the existing guidance where the impairment test is based on estimated net realizable value. The guidance also includes additional disclosure requirements. The standard is effective for fiscal years beginning after December 15, 2019, and the interim periods within those fiscal years. The amendments in ASU 2019-02 should be applied prospectively. The Company does not expect the standard to have a material impact inancial 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. 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 model 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. The Company is currently evaluating the impact of adopting ASU 2016-13 on its financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of ASC 842 Adoption Adjustments Impact on Balance Sheets | The Company recognized operating lease ROU assets on its Balance Sheet as of January 1, 2019 of $6.5 million, inclusive of the present value of remaining future operating lease payments of $11.0 million and reclassifications of certain operating lease related assets and liabilities under the Company’s historical accounting policy prior to the adoption of ASC 842 such as deferred rent, short-term prepaid expenses and other accruals. These are summarized in the table below (in thousands). The adoption did not result in a cumulative impact on retained earnings as of January 1, 2019. ASC 842 Adoption Adjustments Present Value of Remaining Reclassifications of Operating Lease Related Balance Sheet Items to Operating Lease Right-of-Use Assets Impact on Balance Sheets December 31, 2018 Operating Lease Payments as of January 1, 2019 Deferred Rent Other Total January 1, 2019 Prepaid expenses and other current assets $ 1,130 $ - $ - $ (77 ) $ (77 ) $ 1,053 Other noncurrent assets, net 936 10,957 (4,175 ) (332 ) 6,450 7,386 Total Assets 216,595 10,957 (4,175 ) (409 ) 6,373 222,968 Other current liabilities 8,558 1,802 (531 ) (198 ) 1,073 9,631 Other noncurrent liabilities 6,820 9,155 (3,644 ) (211 ) 5,300 12,120 Total Liabilities 237,732 10,957 (4,175 ) (409 ) 6,373 244,105 |
Local Service Agreements with_2
Local Service Agreements with Nexstar (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 SSAs is a flat fee 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, 2019: 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 5/31/35 $182 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 $933 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 $338 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 $247 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 $207 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WAWV Terre Haute, IN SSA JSA 6/30/25 5/08/23 $81 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KCIT/KCPN-LP Amarillo, TX SSA JSA 6/30/25 4/30/35 $242 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KAMC Lubbock, TX SSA JSA 6/30/25 2/16/35 $333 thousand per month paid to Nexstar 70% of net revenue received from Nexstar KOLR Springfield, MO SSA JSA 6/30/25 2/16/35 $776 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WUTR Utica, NY SSA JSA 6/30/25 3/31/24 $101 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WTVO Rockford, IL SSA JSA 6/30/25 10/31/24 $353 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 $393 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WTVW Evansville, IN SSA JSA 6/30/25 8/01/21 $212 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 1/01/21 $635 thousand per month paid to Nexstar 70% of net revenue received from Nexstar WVNY Burlington-Plattsburgh, VT SSA JSA 6/30/25 3/01/21 $313 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, 2019 | |
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 2019 2018 Buildings and improvements 39 $ 8,420 $ 8,396 Land N/A 1,632 1,632 Leasehold improvements term of lease 70 70 Studio and transmission equipment 5-15 36,210 36,074 Computer equipment 3-5 320 320 Furniture and fixtures 7 832 832 Vehicles 5 611 701 Construction in progress N/A 8,755 5,423 56,850 53,448 Less: accumulated depreciation (34,128 ) (33,581 ) Property and equipment, net $ 22,722 $ 19,867 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 useful life, Accumulated Accumulated in years Gross Amortization Net Gross Amortization Net Network affiliation agreements 15 $ 86,248 $ (74,947 ) $ 11,301 $ 86,248 $ (73,153 ) $ 13,095 Other definite-lived intangible assets 1-15 15,681 (15,190 ) 491 15,681 (15,064 ) 617 Other intangible assets $ 101,929 $ (90,137 ) $ 11,792 $ 101,929 $ (88,217 ) $ 13,712 |
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, 2019 (in thousands): 2020 $ 1,518 2021 1,517 2022 1,517 2023 1,444 2024 1,330 Thereafter 4,466 $ 11,792 |
Goodwill and FCC Licenses | The carrying amounts of goodwill and FCC licenses for the years ended December 31, 2019 and 2018 are as follows (in thousands): Goodwill FCC Licenses Accumulated Accumulated Gross Impairment Net Gross Impairment Net Balances as of December 31, 2018 $ 34,737 $ (1,550 ) $ 33,187 $ 53,799 $ (10,697 ) $ 43,102 Balances as of December 31, 2019 $ 34,737 $ (1,550 ) $ 33,187 $ 53,799 $ (10,697 ) $ 43,102 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following as of December 31 (in thousands): 2019 2018 Network affiliation fees $ 299 $ 279 Compensation and related taxes 293 262 Current portion of broadcast rights payable 312 325 Other 2,640 1,451 $ 3,544 $ 2,317 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Long-term debt consisted of the following, as of December 31 (in thousands): 2019 2018 Term loans $ 226,242 $ 228,527 Less: unamortized financing costs and discount (3,177 ) (3,888 ) Total outstanding debt 223,065 224,639 Less: current portion (2,285 ) (2,285 ) Long-term debt, net of current portion $ 220,780 $ 222,354 |
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): 2019 2018 Carrying Fair Carrying Fair Amount Value Amount Value Term loans $ 226,242 $ 227,154 $ 224,639 $ 220,450 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, 2019 are summarized as follows (in thousands): 2020 $ 2,285 2021 2,285 2022 2,285 2023 2,285 Thereafter 217,102 $ 226,242 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Components of Lease Right-of-Use Assets and Liabilities | The following table summarizes the components of our lease right-of-use assets and liabilities at December 31, 2019 (in thousands): (In thousands) Balance Sheet Classification December 31, 2019 Operating Leases Operating lease right-of-use assets, net Other noncurrent assets, net $ 5,275 Current lease liabilities Current operating lease liabilities $ 2,009 Noncurrent lease liabilities Other noncurrent liabilities $ 7,114 |
Schedule of Other Information Related to Leases | Other information related to leases as of December 31, 2019 was as follows (in thousands, except lease term and discount rate): Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,698 Weighted Average Remaining Lease Term 8 Weighted Average Discount Rate 5.33 % |
Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases | Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows (in thousands): 2020 $ 2,434 2021 1,494 2022 890 2023 922 2024 921 Thereafter 4,811 Total future minimum lease payments 11,472 Less imputed interest (2,349 ) Total $ 9,123 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ASC 606 [Member] | |
Summary of Disaggregation of Revenue | The following table presents the disaggregation of our revenue for the years ended December 31, 2019, 2018 and 2017 under ASC 606. Comparative 2017 revenues are presented in accordance with the Company’s historical accounting standard prior to the adoption of ASC 606 (in thousands): 2019 2018 2017 Distribution revenue $ 76,326 $ 68,365 $ 65,854 Revenue from Nexstar 34,652 39,997 36,546 Other 1,265 862 712 Barter revenue - - 4,026 Net revenue $ 112,243 $ 109,224 $ 107,138 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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): 2019 2018 2017 Current tax (benefit) expense: Federal $ (759 ) $ (5 ) $ (1,355 ) State 17 (60 ) 304 (742 ) (65 ) (1,051 ) Deferred tax expense (benefit): Federal 15,557 (1,523 ) 4,140 State 489 (454 ) 311 16,046 (1,977 ) 4,451 Income tax expense (benefit) $ 15,304 $ (2,042 ) $ 3,400 |
Schedule of Effective Income Tax (Benefit) Expense Reconciliation | The income tax expense (benefit) 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): 2019 2018 2017 Income tax expense (benefit) at 35% statutory federal rate $ (2,805 ) $ (1,653 ) $ 3,162 State and local taxes, net of federal benefit (527 ) (395 ) 410 Impact of federal tax rate reduction on deferred taxes - - 1,220 Impact of federal tax rate reduction on uncertain tax positions - - (1,471 ) Other 76 6 79 Change in beginning of year valuation allowance 18,560 - - Income tax (benefit) expense $ 15,304 $ (2,042 ) $ 3,400 |
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): 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 14,321 $ 12,808 Rent - 501 Other 6,974 5,139 Total 21,295 18,448 Valuation allowance (18,560 ) - Total deferred tax assets 2,735 18,448 Deferred tax liabilities: Property and equipment (1,855 ) (1,721 ) Goodwill (6,279 ) (4,888 ) Other intangible assets (43 ) (833 ) FCC licenses (7,260 ) (6,706 ) Other 137 (815 ) Total deferred tax liabilities (15,300 ) (14,963 ) Net deferred tax (liabilities) assets $ (12,565 ) $ 3,485 |
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): 2019 2018 2017 Uncertain tax position liability at the beginning of the year $ 2,206 $ 2,206 $ 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 $ 2,206 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 (in thousands): 2020 $ 908 2021 411 2022 191 2023 33 $ 1,543 |
Organization and Business Ope_2
Organization and Business Operations - Additional Information (Details) $ in Thousands | Nov. 29, 2019USD ($) | Dec. 31, 2019USD ($)TelevisionStationSegmentTelevisionMarket |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
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 | |
Maximum consolidated first lien net leverage ratio, percentage | 425.00% | |
Payment of cash in exchange for guarantee obligation | $ (48,876) | |
Loan receivable recognized | $ 48,876 | |
Other Current Assets [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Loan receivable recognized | $ 48,900 | |
Marshall [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Payment of cash in exchange for guarantee obligation | 50,000 | |
Marshall [Member] | Term Loan A [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Loan receivable recognized | 43,200 | |
Marshall [Member] | Revolving Credit Facility [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Loan receivable recognized | $ 5,600 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Nov. 29, 2011USD ($) | Dec. 31, 2019USD ($)ReportingUnit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) |
Summary Of Significant Accounting Policies [Line Items] | |||||
Retransmission agreements contracts term | 3 years | ||||
Revenue | $ 112,243,000 | $ 109,224,000 | $ 107,138,000 | ||
Operating lease ROU assets | 5,275,000 | ||||
Operating lease liabilities | 9,123,000 | ||||
Future operating lease payments | 11,472,000 | ||||
Accumulated deficit | (49,800,000) | (21,137,000) | |||
Term Loan B [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Debt financing costs | $ 3,200,000 | $ 3,900,000 | |||
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 | ||
ASC 842 Adoption Adjustments [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Operating lease ROU assets | $ 6,500,000 | ||||
Operating lease liabilities | 6,500,000 | ||||
Future operating lease payments | 11,000,000 | ||||
Accumulated deficit | $ 0 | ||||
Barter Revenue [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Revenue | $ 0 | $ 4,026,000 | |||
Prior to Adoption of ASC 606 [Member] | Barter Revenue [Member] | ASC 606 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Revenue | 4,000,000 | ||||
Expense | $ 4,000,000 | ||||
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] | Option Agreement To Sell The Assets Of Mission Stations To Nexstar [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Options expiration date year | 2028 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of ASC 842 Adoption Adjustments Impact on Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Prepaid expenses and other current assets | $ 632 | $ 1,130 | |
Other noncurrent assets, net | 6,381 | 936 | |
Total Assets | 205,679 | 216,595 | |
Other current liabilities | 12,330 | 8,558 | |
Other noncurrent liabilities | 9,804 | 6,820 | |
Total Liabilities | $ 255,479 | $ 237,732 | |
ASC 842 Adoption Adjustments [Member] | |||
Prepaid expenses and other current assets | $ 1,053 | ||
Other noncurrent assets, net | 7,386 | ||
Total Assets | 222,968 | ||
Other current liabilities | 9,631 | ||
Other noncurrent liabilities | 12,120 | ||
Total Liabilities | 244,105 | ||
ASC 842 Adoption Adjustments [Member] | Present Value of Remaining Operating Lease Payments Adjustments [Member] | Restatement Adjustment [Member] | |||
Other noncurrent assets, net | 10,957 | ||
Total Assets | 10,957 | ||
Other current liabilities | 1,802 | ||
Other noncurrent liabilities | 9,155 | ||
Total Liabilities | 10,957 | ||
ASC 842 Adoption Adjustments [Member] | Reclassifications Adjustments of Operating Lease Deferred Rent to Operating Lease Right of Use Assets {Member] | Restatement Adjustment [Member] | |||
Other noncurrent assets, net | (4,175) | ||
Total Assets | (4,175) | ||
Other current liabilities | (531) | ||
Other noncurrent liabilities | (3,644) | ||
Total Liabilities | (4,175) | ||
ASC 842 Adoption Adjustments [Member] | Reclassifications Adjustments of Operating Lease Other to Operating Lease Right of Use Assets [Member] | Restatement Adjustment [Member] | |||
Prepaid expenses and other current assets | (77) | ||
Other noncurrent assets, net | (332) | ||
Total Assets | (409) | ||
Other current liabilities | (198) | ||
Other noncurrent liabilities | (211) | ||
Total Liabilities | (409) | ||
ASC 842 Adoption Adjustments [Member] | Reclassifications Adjustments of Operating Lease Total to Operating Lease Right of Use Assets [Member] | Restatement Adjustment [Member] | |||
Prepaid expenses and other current assets | (77) | ||
Other noncurrent assets, net | 6,450 | ||
Total Assets | 6,373 | ||
Other current liabilities | 1,073 | ||
Other noncurrent liabilities | 5,300 | ||
Total Liabilities | $ 6,373 |
Local Service Agreements with_3
Local Service Agreements with Nexstar - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Shared Services Agreement [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Monthly consideration fee, 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, 2019USD ($) | |
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 | $ 182 |
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, 2035 |
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 | $ 933 |
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 | $ 338 |
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 | $ 247 |
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 | $ 207 |
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 | $ 81 |
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 | $ 242 |
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, 2035 |
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 | $ 333 |
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 | $ 776 |
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 | $ 101 |
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 | $ 353 |
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 | $ 393 |
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 | $ 212 |
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 | Aug. 1, 2021 |
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 | $ 635 |
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 | $ 313 |
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, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 56,850 | $ 53,448 |
Less: accumulated depreciation | (34,128) | (33,581) |
Property and equipment, net | $ 22,722 | $ 19,867 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life, in years | 39 years | 39 years |
Property and equipment, gross | $ 8,420 | $ 8,396 |
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 | $ 36,210 | $ 36,074 |
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 | $ 320 |
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 | $ 611 | $ 701 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,755 | $ 5,423 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross | $ 101,929 | $ 101,929 | |
Accumulated Amortization | (90,137) | (88,217) | |
Net | 11,792 | 13,712 | |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 15,681 | 15,681 | |
Accumulated Amortization | (15,190) | (15,064) | |
Net | $ 491 | $ 617 | |
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 | (74,947) | (73,153) | |
Net | $ 11,301 | $ 13,095 | |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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, 2019 | Dec. 31, 2018 |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | ||
2020 | $ 1,518 | |
2021 | 1,517 | |
2022 | 1,517 | |
2023 | 1,444 | |
2024 | 1,330 | |
Thereafter | 4,466 | |
Net | $ 11,792 | $ 13,712 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Goodwill and FCC Licenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill [Abstract] | ||
Goodwill, Gross | $ 34,737 | $ 34,737 |
Goodwill, Accumulated Impairment | (1,550) | (1,550) |
Goodwill, Net | 33,187 | 33,187 |
FCC Licenses [Abstract] | ||
FCC Licenses, Gross | 53,799 | 53,799 |
FCC Licenses, Accumulated Impairment | (10,697) | (10,697) |
FCC Licenses, Net | $ 43,102 | $ 43,102 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Network affiliation fees | $ 299 | $ 279 |
Compensation and related taxes | 293 | 262 |
Current portion of broadcast rights payable | 312 | 325 |
Other | 2,640 | 1,451 |
Accrued expenses | $ 3,544 | $ 2,317 |
Debt - Long Term Debt (Details)
Debt - Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Long term Debt [Abstract] | ||
Long Term Debt | $ 226,242 | |
Less: current portion | (2,285) | $ (2,285) |
Long-term debt, net of current portion | 220,780 | 222,354 |
Term Loan B [Member] | ||
Long term Debt [Abstract] | ||
Long Term Debt | 226,242 | 228,527 |
Less: unamortized financing costs and discount | (3,177) | (3,888) |
Total outstanding debt | 223,065 | 224,639 |
Less: current portion | (2,285) | (2,285) |
Long-term debt, net of current portion | $ 220,780 | $ 222,354 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Nov. 29, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Long Term Debt | $ 226,242,000 | ||
Payment of cash in exchange for guarantee obligation | (48,876,000) | ||
Loan receivable recognized | 48,876,000 | ||
Other Noncurrent Assets [Member] | |||
Debt Instrument [Line Items] | |||
Loan receivable recognized | $ 48,900,000 | ||
Marshall [Member] | |||
Debt Instrument [Line Items] | |||
Payment of cash in exchange for guarantee obligation | 50,000,000 | ||
Financial Guarantee of Nexstar 5.625% Senior Unsecured Notes Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Maximum guarantee exposure | $ 1,785,000,000 | ||
Interest rate | 5.625% | ||
Aggregate principal amount outstanding | $ 1,785,000,000 | ||
Financial Guarantee of Nexstar 5.625% Senior Unsecured Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Maximum guarantee exposure | $ 900,000,000 | ||
Interest rate | 5.625% | ||
Aggregate principal amount outstanding | $ 900,000,000 | ||
Guarantee of Nexstar Senior Secured Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum guarantee exposure | 5,830,000,000 | ||
Guarantee of Nexstar Senior Secured Credit Facility New and Old Term Loan B [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount outstanding | 4,116,000,000 | ||
Guarantee of Nexstar Senior Secured Credit Facility New and Old Term Loan A [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount outstanding | 1,450,000,000 | ||
Guarantee of Nexstar Standby Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount outstanding | 23,700,000 | ||
Revolving Loans [Member] | |||
Debt Instrument [Line Items] | |||
Long Term Debt | $ 0 | $ 0 | |
Maturity date | Oct. 26, 2023 | ||
Interest rate during the period (in hundredths) | 3.51% | 4.27% | |
Commitment fees | 0.50% | 0.50% | |
Available borrowing capacity | $ 3,000,000 | ||
Revolving Loans [Member] | Marshall [Member] | |||
Debt Instrument [Line Items] | |||
Loan receivable recognized | 5,600,000 | ||
Term Loan B [Member] | |||
Debt Instrument [Line Items] | |||
Long Term Debt | $ 226,242,000 | $ 228,527,000 | |
Maturity date | Jan. 17, 2024 | ||
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) | 4.01% | 4.77% | |
Term Loan A [Member] | Marshall [Member] | |||
Debt Instrument [Line Items] | |||
Loan receivable recognized | $ 43,200,000 |
Debt - Fair Value of Debt (Deta
Debt - Fair Value of Debt (Details) - Term Loan B [Member] - Level 3 [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Amount [Member] | ||
Fair Value of debt [Line Items] | ||
Carrying and Fair Value of Debt | $ 226,242 | $ 224,639 |
Fair Value [Member] | ||
Fair Value of debt [Line Items] | ||
Carrying and Fair Value of Debt | $ 227,154 | $ 220,450 |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Maturities [Abstract] | |
2020 | $ 2,285 |
2021 | 2,285 |
2022 | 2,285 |
2023 | 2,285 |
Thereafter | 217,102 |
Debt | $ 226,242 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee Lease Description [Line Items] | |
Operating lease, existence of option to extend | true |
Operating lease, existence of option to terminate | true |
Operating lease cost | $ 1.7 |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease, remaining lease term | 4 months |
Operating lease, option to extend term | 5 years |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease, remaining lease term | 13 years |
Operating lease, option to extend term | 25 years |
Operating lease, option to terminate term | 1 year |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Right-of-Use Assets and Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
Operating lease right-of-use assets, net | $ 5,275 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent |
Current lease liabilities | $ 2,009 |
Noncurrent lease liabilities | $ 7,114 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Supplemental information: | |
Operating cash flows from operating leases | $ 1,698 |
Weighted Average Remaining Lease Term | 8 years |
Weighted Average Discount Rate | 5.33% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 2,434 |
2021 | 1,494 |
2022 | 890 |
2023 | 922 |
2024 | 921 |
Thereafter | 4,811 |
Total future minimum lease payments | 11,472 |
Less imputed interest | (2,349) |
Total | $ 9,123 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue From Contract With Customer [Abstract] | ||
Contract balances | $ 0 | $ 0 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||
Net revenue | $ 112,243 | $ 109,224 | $ 107,138 |
Revenue from Nexstar | 34,652 | 39,997 | 36,546 |
Barter Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net revenue | 0 | 4,026 | |
Distribution Revenue [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net revenue | 76,326 | 68,365 | 65,854 |
Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net revenue | $ 1,265 | $ 862 | $ 712 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019Stockholder$ / sharesshares | Dec. 31, 2018Stockholder$ / 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax (benefit) expense: | |||
Federal | $ (759) | $ (5) | $ (1,355) |
State | 17 | (60) | 304 |
Current tax (benefit) expense | (742) | (65) | (1,051) |
Deferred tax expense (benefit): | |||
Federal | 15,557 | (1,523) | 4,140 |
State | 489 | (454) | 311 |
Deferred tax expense | 16,046 | (1,977) | 4,451 |
Income tax expense (benefit) | $ 15,304 | $ (2,042) | $ 3,400 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax (Benefit) Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective income tax expense reconciliation [Abstract] | |||
Income tax expense (benefit) at 35% statutory federal rate | $ (2,805) | $ (1,653) | $ 3,162 |
State and local taxes, net of federal benefit | (527) | (395) | 410 |
Impact of federal tax rate reduction on deferred taxes | 1,220 | ||
Impact of federal tax rate reduction on uncertain tax positions | (1,471) | ||
Other | 76 | 6 | 79 |
Change in beginning of year valuation allowance | 18,560 | ||
Income tax expense (benefit) | $ 15,304 | $ (2,042) | $ 3,400 |
Income Taxes - Schedule of Ef_2
Income Taxes - Schedule of Effective Income Tax (Benefit) Expense Reconciliation (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal rate | 21.00% | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Statutory federal income tax rate | 21.00% | 35.00% | ||
Valuation allowance for deferred tax assets | $ 18,560,000 | |||
Change in beginning of year valuation allowance | 18,560,000 | |||
Gross unrecognized tax benefits | 2,206,000 | $ 2,206,000 | $ 2,206,000 | $ 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 | $ 7,400,000 | $ 3,400,000 | ||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 63,100,000 | |||
Operating loss carryforwards expiration period | 2033 | |||
State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 16,700,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 14,321 | $ 12,808 |
Rent | 501 | |
Other | 6,974 | 5,139 |
Total | 21,295 | 18,448 |
Valuation allowance | (18,560) | |
Total deferred tax assets | 2,735 | 18,448 |
Deferred tax liabilities: | ||
Property and equipment | (1,855) | (1,721) |
Goodwill | (6,279) | (4,888) |
Other intangible assets | (43) | (833) |
FCC licenses | (7,260) | (6,706) |
Total deferred tax liabilities | (15,300) | (14,963) |
Other | 137 | (815) |
Net deferred tax (liabilities) assets | $ 3,485 | |
Net deferred tax (liabilities) assets | $ (12,565) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Uncertain tax position liability at the beginning of the year | $ 2,206 | $ 2,206 | $ 3,677 |
Decreases related to tax positions taken during prior periods | 0 | 0 | (1,471) |
Uncertain tax position liability at the end of the year | $ 2,206 | $ 2,206 | $ 2,206 |
FCC Regulatory Matters - Additi
FCC Regulatory Matters - Additional Information (Details) $ in Thousands | Dec. 06, 2019USD ($) | Dec. 31, 2019USD ($)TelevisionStation | Dec. 31, 2018USD ($) |
Risks And Uncertainties [Abstract] | |||
Maximum percentage of television household reach | 39.00% | ||
Percentage reach of ultra high frequency station | 50.00% | ||
Date of abolishing the UHF discount | Aug. 24, 2016 | ||
Effective date of reinstating the UHF discount | Jun. 15, 2017 | ||
Number of full power stations repacked | TelevisionStation | 7 | ||
Maximum amount allocated by Congress for reimbursement of repack costs | $ 2,750,000 | ||
Relocation fund included in reimbursement of repack costs | 1,000,000 | ||
Estimated reimbursable verified costs | $ 1,950,000 | ||
Effective percentage of reimbursement for repack cost | 79.00% | ||
Capital expenditures related to station repack | 5,600 | $ 3,900 | |
Reimbursement from the FCC related to station repack | $ 5,663 | $ 2,818 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Payments for Un-booked Broadcast Rights Commitments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Broadcast Rights Commitments [Abstract] | |
2020 | $ 908 |
2021 | 411 |
2022 | 191 |
2023 | 33 |
Future minimum payment due for license agreement, total | $ 1,543 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) | Feb. 28, 2020 | Jan. 30, 2020 | Nov. 29, 2011 | Dec. 31, 2019 |
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 | $ 5,830,000,000 | |||
Outstanding principal balance repaid | 139,700,000 | |||
Revolving loan commitment outstanding | 0 | |||
Guarantee of Nexstar Senior Secured Credit Facility New and Old Term Loan B [Member] | ||||
Guarantees of Nexstar Debt [Abstract] | ||||
Aggregate principal amount outstanding | 4,116,000,000 | |||
Financial Guarantee of Nexstar 5.625% Senior Unsecured Notes Due 2027 [Member] | ||||
Guarantees of Nexstar Debt [Abstract] | ||||
Maximum guarantee exposure | 1,785,000,000 | |||
Aggregate principal amount outstanding | $ 1,785,000,000 | |||
Interest rate | 5.625% | |||
Maturity year | 2027 | |||
Financial Guarantee of Nexstar 5.625% Senior Unsecured Notes Due 2024 [Member] | ||||
Guarantees of Nexstar Debt [Abstract] | ||||
Maximum guarantee exposure | $ 900,000,000 | |||
Aggregate principal amount outstanding | $ 900,000,000 | |||
Interest rate | 5.625% | |||
Guarantee of Nexstar Senior Secured Credit Facility New and Old Term Loan A [Member] | ||||
Guarantees of Nexstar Debt [Abstract] | ||||
Aggregate principal amount outstanding | $ 1,450,000,000 | |||
Financial Guarantee of Nexstar 5.625% Senior Unsecured Notes Due 2024 [Member] | ||||
Guarantees of Nexstar Debt [Abstract] | ||||
Aggregate principal amount outstanding | $ 900,000,000 | |||
Maturity year | 2024 | |||
Guarantee of Nexstar Standby Letters of Credit [Member] | ||||
Guarantees of Nexstar Debt [Abstract] | ||||
Aggregate principal amount outstanding | $ 23,700,000 | |||
Financial Guarantee Nexstar Senior Secured Credit Facility Old Term Loan B [Member] | ||||
Guarantees of Nexstar Debt [Abstract] | ||||
Maturity year | Jan. 17, 2024 | |||
Financial Guarantee Nexstar Senior Secured Credit Facility Old Term Loan B [Member] | Subsequent Event [Member] | ||||
Guarantees of Nexstar Debt [Abstract] | ||||
Outstanding principal balance prepaid | $ 100,000,000 | $ 30,000,000 | ||
Financial Guarantee Nexstar Senior Secured Credit Facility New Term Loan B [Member] | ||||
Guarantees of Nexstar Debt [Abstract] | ||||
Maturity year | Sep. 18, 2026 | |||
Financial Guarantee Nexstar Senior Secured Credit Facility New Term Loan A [Member] | ||||
Guarantees of Nexstar Debt [Abstract] | ||||
Maturity year | Sep. 19, 2024 | |||
Financial Guarantee Nexstar Senior Secured Credit Facility Old Term Loan A [Member] | ||||
Guarantees of Nexstar Debt [Abstract] | ||||
Maturity year | Oct. 26, 2023 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Contributions by employer | $ 55,000 | $ 45,000 | $ 23,000 |