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Segment Data
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Data

Note 18:  Segment Data

 

The Company evaluates the performance of its operating segments based on net revenue and operating income. The Company’s broadcast segment includes (i) television stations and related community focused websites that Nexstar owns, operates, programs or provides sales and other services to in various markets across the United States, (ii) WGN America, a national general entertainment cable network and the home of NewsNation, (iii) digital multicast network services, and (iv) WGN-AM, a Chicago radio station. The other activities of the Company include (i) corporate functions, (ii) the management of certain real estate assets that Nexstar acquired in September 2019 through the Merger, including revenues from leasing certain owned office and production facilities, (iii) digital businesses and (iv) eliminations.

 

Segment financial information is included in the following tables for the periods presented (in thousands):

 

Year Ended December 31, 2020

 

Broadcast

 

 

 

 

Other

 

 

Consolidated

 

Net revenue

 

$

4,410,528

 

 

 

 

$

90,741

 

 

$

4,501,269

 

Depreciation

 

 

125,560

 

 

 

 

 

22,128

 

 

 

147,688

 

Amortization of intangible assets

 

 

276,330

 

 

 

 

 

3,380

 

 

 

279,710

 

Income (loss) from operations

 

 

1,536,835

 

 

 

 

 

(161,439

)

 

 

1,375,396

 

Goodwill

 

 

2,874,274

 

 

 

 

 

109,734

 

 

 

2,984,008

 

Assets(1)

 

 

12,352,509

 

 

 

 

 

1,051,767

 

 

 

13,404,276

 

 

Year Ended December 31, 2019

 

Broadcast

 

 

Other

 

 

Consolidated

 

Net revenue

 

$

2,929,431

 

 

$

109,893

 

 

$

3,039,324

 

Depreciation

 

 

108,805

 

 

 

14,570

 

 

 

123,375

 

Amortization of intangible assets

 

 

182,238

 

 

 

18,079

 

 

 

200,317

 

Income (loss) from operations

 

 

948,237

 

 

 

(293,106

)

 

 

655,131

 

Goodwill

 

 

2,996,875

 

 

 

-

 

 

 

2,996,875

 

Assets(1)

 

 

12,918,966

 

 

 

1,070,771

 

 

 

13,989,737

 

 

(1)

While the Company's investment in TV Food Network ($1.302 billion at December 31, 2020 and $1.452 billion at December 31, 2019) has not been allocated to a Company reporting unit or operating segment, such asset has been included in the Company's disclosure of Broadcasting segment assets given the similar nature of the investment to that segment. For additional information on equity investments, see Note 7.

Year Ended December 31, 2018

 

Broadcast

 

 

Other

 

 

Consolidated

 

Net revenue

 

$

2,612,531

 

 

$

154,165

 

 

$

2,766,696

 

Depreciation

 

 

89,312

 

 

 

20,477

 

 

 

109,789

 

Amortization of intangible assets

 

 

126,850

 

 

 

22,556

 

 

 

149,406

 

Income (loss) from operations

 

 

918,401

 

 

 

(160,622

)

 

 

757,779

 

 

The following table presents the disaggregation of the Company’s revenue under ASC 606 for the periods presented.

 

Year Ended December 31, 2020

 

Broadcast

 

 

Other

 

 

Consolidated

 

Core advertising (local and national)

 

$

1,571,034

 

 

$

38

 

 

$

1,571,072

 

Political advertising

 

 

507,564

 

 

 

-

 

 

 

507,564

 

Distribution

 

 

2,149,569

 

 

 

3,053

 

 

 

2,152,622

 

Digital

 

 

141,960

 

 

 

81,408

 

 

 

223,368

 

Other

 

 

28,226

 

 

 

6,242

 

 

 

34,468

 

Trade

 

 

12,175

 

 

 

-

 

 

 

12,175

 

Total net revenue

 

$

4,410,528

 

 

$

90,741

 

 

$

4,501,269

 

 

Year Ended December 31, 2019

 

Broadcast

 

 

 

 

Other

 

 

Consolidated

 

Core advertising (local and national)

 

$

1,335,126

 

 

 

 

$

-

 

 

$

1,335,126

 

Political advertising

 

 

51,889

 

 

 

 

 

-

 

 

 

51,889

 

Distribution

 

 

1,368,881

 

 

 

 

 

-

 

 

 

1,368,881

 

Digital

 

 

137,067

 

 

 

 

 

104,452

 

 

 

241,519

 

Other

 

 

19,083

 

 

 

 

 

5,441

 

 

 

24,524

 

Trade

 

 

17,385

 

 

 

 

 

-

 

 

 

17,385

 

Total net revenue

 

$

2,929,431

 

 

 

 

$

109,893

 

 

$

3,039,324

 

 

Year Ended December 31, 2018

 

Broadcast

 

 

 

 

Other

 

 

Consolidated

 

Core advertising (local and national)

 

$

1,089,920

 

 

 

 

$

-

 

 

$

1,089,920

 

Political advertising

 

 

251,209

 

 

 

 

 

-

 

 

 

251,209

 

Distribution

 

 

1,121,081

 

 

 

 

 

-

 

 

 

1,121,081

 

Digital

 

 

107,054

 

 

 

 

 

154,105

 

 

 

261,159

 

Other

 

 

26,425

 

 

 

 

 

60

 

 

 

26,485

 

Trade

 

 

16,842

 

 

 

 

 

-

 

 

 

16,842

 

Total revenue

 

$

2,612,531

 

 

 

 

$

154,165

 

 

$

2,766,696

 

 

As discussed in Note 2, the Company primarily derives its revenues from television and digital advertising and from distribution of its stations’ signals and networks. During the year ended December 31, 2020, revenues from these sources for two of the Company's customers exceeded 10%. Each of these customers represents approximately 11% of the Company’s consolidated net revenues. No single customer provides more than 10% of the Company’s consolidated net revenues during the years ended December 31, 2019 and 2018.

Advertising revenue (local, national, political and digital) 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 and the carriage of WGN America. Distribution revenue is recognized at the point in time the broadcast signal is delivered to the distributors and is based on a price per subscriber.