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 Spanish-language 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, national and political 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. Our radio stations earn revenue primarily from the sale of advertising to local advertisers. Our digital segment includes the digital operations of our local television and radio businesses. It also includes the operations of national digital businesses such as Newsy, an over-the-top ("OTT") video news service, Cracked, the multi-platform humor and satire brand, and Midroll, a podcast industry leader. Our digital operations earn revenue primarily through the sale of advertising and marketing services. 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 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, 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. Information regarding our business segments is as follows: Three Months Ended Six Months Ended (in thousands) 2016 2015 2016 2015 Segment operating revenues: Television $ 191,745 $ 167,394 $ 371,649 $ 281,612 Radio 18,183 19,413 32,786 19,413 Digital 15,207 8,602 27,533 14,837 Syndication and other 2,682 2,725 5,347 5,295 Total operating revenues $ 227,817 $ 198,134 $ 437,315 $ 321,157 Segment profit (loss): Television $ 53,298 $ 44,596 $ 94,985 $ 66,650 Radio 3,903 4,908 6,046 4,908 Digital (4,715 ) (4,917 ) (7,848 ) (9,571 ) Syndication and other (1,045 ) (1,062 ) (152 ) (657 ) Shared services and corporate (9,874 ) (11,507 ) (24,166 ) (25,043 ) Defined benefit pension plan expense (3,449 ) (4,120 ) (6,899 ) (6,806 ) Acquisition and related integration costs — (29,973 ) (578 ) (32,747 ) Depreciation and amortization of intangibles (14,786 ) (13,366 ) (29,197 ) (21,661 ) Losses, net on disposal of property and equipment (22 ) (215 ) (18 ) (379 ) Interest expense (4,432 ) (4,225 ) (9,011 ) (6,277 ) Miscellaneous, net (458 ) 387 (649 ) (1,049 ) Income (loss) from continuing operations before income taxes $ 18,420 $ (19,494 ) $ 22,513 $ (32,632 ) Depreciation: Television $ 7,932 $ 7,238 $ 15,397 $ 12,624 Radio 543 549 1,080 549 Digital 54 132 108 262 Syndication and other 65 66 129 129 Shared services and corporate 334 619 870 1,227 Total depreciation $ 8,928 $ 8,604 $ 17,584 $ 14,791 Amortization of intangibles: Television $ 4,240 $ 4,262 $ 8,479 $ 6,150 Radio 265 280 530 280 Digital 1,014 220 1,927 440 Shared services and corporate 339 — 677 — Total amortization of intangibles $ 5,858 $ 4,762 $ 11,613 $ 6,870 Additions to property and equipment: Television $ 6,519 $ 5,802 $ 9,630 $ 7,743 Radio 83 16 316 16 Digital 13 — 17 — Syndication and other 26 15 41 69 Shared services and corporate 266 633 324 943 Total additions to property and equipment $ 6,907 $ 6,466 $ 10,328 $ 8,771 No single customer provides more than 10% of our revenue. |