Segment Information | Segment Information We determine our business segments based upon our management and internal reporting structures. Our reportable segments are strategic businesses that offer different products and services. Our television segment includes 15 ABC affiliates, five NBC affiliates, two FOX affiliates, two CBS affiliates and four non big four affiliated stations. We also own five Azteca America affiliates. Our television stations reach approximately 18% of the nation’s television households. Television stations earn revenue primarily from the sale of advertising time to local and national advertisers and retransmission fees received from cable operators and satellite carriers. Our radio segment consists of 34 radio stations in eight markets. We operate 28 FM stations and six AM stations. In five of our markets, we operate both television and radio stations. Radio stations earn revenue primarily from the sale of advertising to local advertisers. Our digital segment supports the digital operations for our television and radio businesses. It also includes the operations of national digital businesses such as Newsy, a digital video news service, and WeatherSphere, a provider of weather-related mobile apps. Our digital operations earn revenue primarily through the sale of advertising, marketing services and app downloads and subscriptions. Syndication and other primarily includes the syndication of news features and comics and other features for the newspaper industry. We allocate a portion of certain corporate costs and expenses, including information technology, certain employee benefits and other shared services, to our business segments. The allocations are generally amounts agreed upon by management, which may differ from an arms-length amount. Corporate assets are primarily cash and cash equivalents, restricted cash, property and equipment primarily used for corporate purposes, and deferred income taxes. Our chief operating decision maker evaluates the operating performance of our business segments and makes decisions about the allocation of resources to our business segments using a measure called segment profit. Segment profit excludes interest, defined benefit pension plan expense (other than current service cost), income taxes, depreciation and amortization, impairment charges, divested operating units, restructuring activities, investment results and certain other items that are included in net income (loss) determined in accordance with accounting principles generally accepted in the United States of America. Effective April 1, 2015, we began reporting our digital operations as a segment. We have recast the operating results for television, syndication and other and shared services and corporate in prior periods to reflect this change. Information regarding our business segments is as follows: Three Months Ended Six Months Ended (in thousands) 2015 2014 2015 2014 Segment operating revenues: Television $ 167,394 $ 111,349 $ 281,612 $ 209,086 Radio 19,413 — 19,413 — Digital 8,602 5,445 14,837 10,681 Syndication and other 2,725 2,902 5,295 5,233 Total operating revenues $ 198,134 $ 119,696 $ 321,157 $ 225,000 Segment profit (loss): Television $ 44,596 $ 28,650 $ 66,650 $ 49,836 Radio 4,908 — 4,908 — Digital (4,917 ) (6,473 ) (9,571 ) (11,271 ) Syndication and other (1,062 ) (881 ) (657 ) (556 ) Shared services and corporate (11,507 ) (10,736 ) (25,043 ) (22,599 ) Defined benefit pension plan expense (4,120 ) (1,319 ) (6,806 ) (2,640 ) Acquisition and related integration costs (29,973 ) (3,939 ) (32,747 ) (4,201 ) Depreciation and amortization of intangibles (13,366 ) (7,438 ) (21,661 ) (14,925 ) (Losses) gains, net on disposal of property, plant and equipment (215 ) (13 ) (379 ) (48 ) Interest expense (4,225 ) (2,041 ) (6,277 ) (4,295 ) Miscellaneous, net 387 (237 ) (1,049 ) (380 ) Loss from continuing operations before income taxes $ (19,494 ) $ (4,427 ) $ (32,632 ) $ (11,079 ) Depreciation: Television $ 7,238 $ 5,028 $ 12,624 $ 10,139 Radio 549 — 549 — Digital 132 92 262 179 Syndication and other 66 20 129 40 Shared services and corporate 619 494 1,227 960 Total depreciation $ 8,604 $ 5,634 $ 14,791 $ 11,318 Amortization of intangibles: Television $ 4,262 $ 1,600 $ 6,150 $ 3,199 Radio 280 — 280 — Digital 220 204 440 408 Total amortization of intangibles $ 4,762 $ 1,804 $ 6,870 $ 3,607 Additions to property, plant and equipment: Television $ 5,802 $ 4,708 $ 7,743 $ 6,440 Radio 16 — 16 — Digital — 60 — 62 Syndication and other 15 42 69 68 Shared services and corporate 633 121 943 726 Total additions to property, plant and equipment $ 6,466 $ 4,931 $ 8,771 $ 7,296 No single customer provides more than 10% of our revenue. |