Guarantor Financial Information

3 Months Ended

Mar. 31, 2016

Condensed Financial Statements Guarantor Financials [Abstract]

LIN Television, a 100% owned subsidiary of Media General, is the primary obligor of the 2021 Notes and 2022 Notes. Media General fully and unconditionally guarantees all of LIN Television’s obligations under the 2021 Notes and the 2022 Notes on a joint and several basis. Additionally, all of the consolidated 100% owned subsidiaries of LIN Television fully and unconditionally guarantee LIN Television’s obligations under the 2021 Notes and 2022 Notes on a joint and several basis. There are certain limitations in the ability of the subsidiaries to pay dividends to Media General. The following financial information presents condensed consolidating balance sheets, statements of operations, and statements of cash flows for Media General, LIN Television (as the issuer), the Guarantor Subsidiaries, and the Non-Guarantor Subsidiaries, together with certain eliminations.

Media General, Inc.

Condensed Consolidating Balance Sheet

March 31, 2016

(in thousands)



	Media General		LIN Television Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—		$	29,512	$	4,081		$	—		$	33,593
Trade accounts receivable, net	—		77,599			183,913		30,377			—			291,889
Prepaid expenses and other current assets	—		2,743			13,144		1,500			—			17,387
Total current assets	—		80,342			226,569		35,958			—			342,869
Property and equipment, net	—		153,261			301,380		2,777			—			457,418
Other assets, net	—		727			29,038		3,145			—			32,910
Definite lived intangible assets, net	—		359,722			445,675		44,442			—			849,839
Broadcast licenses	—		—			1,025,800		71,300			—			1,097,100
Goodwill	—		527,077			924,708		92,839			—			1,544,624
Advances to consolidated subsidiaries	—		(237,643		)	254,351		(16,708		)	—			—
Investment in consolidated subsidiaries	1,413,057		1,296,899			—		—			(2,709,956		)	—
Total assets	$	1,413,057	$	2,180,385		$	3,207,521	$	233,753		$	(2,709,956	)	$	4,324,760

LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current liabilities:
Trade accounts payable	$	—	$	399		$	16,459	$	2,996		$	—		$	19,854
Accrued salaries and wages	—		3,850			16,709		570			—			21,129
Accrued expenses and other current liabilities	—		22,291			80,050		5,769			—			108,110
Current installments of long-term debt	—		—			—		3,514			—			3,514
Current installments of obligation under capital leases	—		575			246		20			—			841
Total current liabilities	—		27,115			113,464		12,869			—			153,448
Long-term debt, net	—		668,122			1,508,935		23,286			—			2,200,343
Deferred tax liability and other long-term tax liabilities	—		58,015			237,358		(1,400		)	—			293,973
Long-term capital lease obligations	—		12,811			999		—			—			13,810
Retirement and postretirement plans	—		—			179,377		—			—			179,377
Other liabilities	—		1,265			27,056		4,966			—			33,287
Total liabilities	—		767,328			2,067,189		39,721			—			2,874,238

Noncontrolling interests	—		—			—		37,465			—			37,465

Total stockholders (deficit) equity	1,413,057		1,413,057			1,140,332		156,567			(2,709,956		)	1,413,057
Total liabilities, noncontrolling interest and stockholders' equity (deficit)	$	1,413,057	$	2,180,385		$	3,207,521	$	233,753		$	(2,709,956	)	$	4,324,760

Media General, Inc.

Condensed Consolidating Balance Sheet

December 31, 2015

(in thousands)



	Media General		LIN Television Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	1,103		$	35,925	$	4,063		$	—		$	41,091
Trade accounts receivable, net	—		75,866			192,306		30,302			—			298,474
Prepaid expenses and other current assets	—		3,264			10,441		1,378			—			15,083
Total current assets	—		80,233			238,672		35,743			—			354,648
Property and equipment, net	—		158,627			309,160		2,750			—			470,537
Other assets, net	—		7,199			27,523		3,348			—			38,070
Definite lived intangible assets, net	—		368,011			458,261		44,857			—			871,129
Broadcast licenses	—		—			1,025,800		71,300			—			1,097,100
Goodwill	—		527,077			924,708		92,839			—			1,544,624
Advances to consolidated subsidiaries	—		(206,396		)	223,051		(16,655		)				—
Investment in consolidated subsidiaries	1,447,970		1,319,392			—		—			(2,767,362		)	—
Total assets	$	1,447,970	$	2,254,143		$	3,207,175	$	234,182		$	(2,767,362	)	$	4,376,108

LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current liabilities:
Trade accounts payable	$	—	$	2,010		$	30,689	$	3,101		$	—		$	35,800
Accrued salaries and wages	—		2,022			19,016		427			—			21,465
Accrued expenses and other current liabilities	—		23,237			68,101		4,162			—			95,500
Current installments of long-term debt	—		—			—		3,804			—			3,804
Current installments of obligation under capital leases	—		575			256		28			—			859
Total current liabilities	—		27,844			118,062		11,522			—			157,428
Long-term debt, net	—		667,867			1,507,181		24,062			—			2,199,110
Deferred tax liability and other long-term tax liabilities	—		62,785			253,232		(783		)	—			315,234
Long-term capital lease obligations	—		12,953			1,059		—			—			14,012
Retirement and postretirement plans	—		25,917			157,070		—			—			182,987
Other liabilities	—		8,807			20,999		5,114			—			34,920
Total liabilities	—		806,173			2,057,603		39,915			—			2,903,691

Noncontrolling interests	—		—			—		24,447			—			24,447

Total stockholders (deficit) equity	1,447,970		1,447,970			1,149,572		169,820			(2,767,362		)	1,447,970
Total liabilities, noncontrolling interest and stockholders' equity (deficit)	$	1,447,970	$	2,254,143		$	3,207,175	$	234,182		$	(2,767,362	)	$	4,376,108

Media General, Inc.

Condensed Consolidated Statement of Comprehensive Income

For the Three Months Ended March 31, 2016

(in thousands)



	Media General			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net operating revenue	$	—		$	99,091		$	235,157		$	17,855		$	(8,640	)	$	343,463

Operating costs:
Operating expenses, excluding depreciation expense	—			42,160			100,634			13,447			(5,098		)	151,143
Selling, general and administrative expenses	—			22,693			53,541			2,252			(165		)	78,321
Amortization of program licenses rights	—			4,480			7,574			513			(501		)	12,066
Corporate and other expenses	—			—			10,350			2			—			10,352
Depreciation and amortization	—			14,399			23,948			1,774			—			40,121
(Gain) loss related to property and equipment, net	—			(7		)	(833		)	72			—			(768		)
Merger-related expenses	—			—			65,882			—			—			65,882
Restructuring expenses	—			—			3,982			—			—			3,982
Operating income (loss)	—			15,366			(29,921		)	(205		)	(2,876		)	(17,636		)

Other income (expense):
Interest expense, net	—			(10,694		)	(17,586		)	(276		)	—			(28,556		)
Intercompany income and (expenses)	—			(10,107		)	10,451			(344		)	—			—
Equity in income (loss) from operations of consolidated subsidiaries	(26,190		)	(15,958		)	—			—			42,148			—
Other, net	—			—			74			—			—			74
Total other income (expense)	(26,190		)	(36,759		)	(7,061		)	(620		)	42,148			(28,482		)

Income (loss) before income taxes	(26,190		)	(21,393		)	(36,982		)	(825		)	39,272			(46,118		)
Income tax benefit (expense)	—			(4,797		)	24,584			618			—			20,405
Net income (loss)	$	(26,190	)	$	(26,190	)	$	(12,398	)	$	(207	)	$	39,272		$	(25,713	)

Net income (loss) attributable to noncontrolling interest	—			—			—			477			—			477
Net income (loss) attributable to Media General	$	(26,190	)	$	(26,190	)	$	(12,398	)	$	(684	)	$	39,272		$	(26,190	)

Other comprehensive income	—			—			—			—			—			—
Total comprehensive income (loss) attributable to Media General	$	(26,190	)	$	(26,190	)	$	(12,398	)	$	(684	)	$	39,272		$	(26,190	)

Media General, Inc.

Condensed Consolidating Statement of Comprehensive Income

For the Three Months Ended March 31, 2015

(in thousands)



	Media General			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Net operating revenue	$	—		$	88,218		$	199,730		$	13,742		$	(4,956	)	$	296,734
Operating costs:
Operating expenses, excluding depreciation expense	—			37,599			83,759			7,542			(3,024		)	125,876
Selling, general and administrative expenses	—			23,524			53,218			4,137			(409		)	80,470
Amortization of program license rights	—			4,178			7,101			479			—			11,758
Corporate and other expenses	—			3,201			9,458			(8		)	—			12,651
Depreciation and amortization	—			14,136			24,672			1,475			—			40,283
Gain related to property and equipment, net	—			(36		)	(192		)	—			—			(228		)
Merger-related expenses	—			1,374			3,903			—			—			5,277
Restructuring expenses	—			—			—			—			—			—
Operating income (loss)	—			4,242			17,811			117			(1,523		)	20,647

Other income (expense)
Interest expense	(1		)	(10,650		)	(20,087		)	(285		)	—			(31,023		)
Debt modification and extinguishment costs	—			—			(613		)	—			—			(613		)
Intercompany income and (expenses)	—			(5,535		)	5,767			(232		)	—			—
Equity in income (loss) from operations of consolidated subsidiaries	(7,432		)	(434		)	—			—			7,866			—
Other, net	—			82			708			2,500			—			3,290
Total other income (expense)	(7,433		)	(16,537		)	(14,225		)	1,983			7,866			(28,346		)

Income (loss) before income taxes	(7,433		)	(12,295		)	3,586			2,100			6,343			(7,699		)
Income tax benefit (expense)	—			4,863			(2,274		)	568			—			3,157
Net income (loss)	$	(7,433	)	$	(7,432	)	$	1,312		$	2,668		$	6,343		$	(4,542	)

Net income (loss) attributable to noncontrolling interests	—			—			(178		)	3,069			—			2,891
Net income (loss) attributable to Media General	$	(7,433	)	$	(7,432	)	$	1,490		$	(401	)	$	6,343		$	(7,433	)

Other comprehensive income	—			—			—			—			—			—
Total comprehensive income (loss) attributable to Media General	$	(7,433	)	$	(7,432	)	$	1,490		$	(401	)	$	6,343		$	(7,433	)

Media General, Inc.

Condensed Consolidating Statement of Cash Flows

Year to date through March 31, 2016

(in thousands)



	Media General		LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Cash flows from operating activities:
Net cash used by operating activities	$	—	$	(4,065	)	$	(596	)	$	(138	)	$	—		$	(4,799	)

Cash flows from investing activities:
Capital expenditures	—		(1,716		)	(3,649		)	(1,398		)	—			(6,763		)
Proceeds from the sale of PP&E	—		29			3,947			—			—			3,976
Receipt of dividend	—		19,502			—			—			(19,502		)	—
Advances on intercompany borrowings	—		(2,644		)	—			—			2,644			—
Payments from intercompany borrowings	—		—			12,060			—			(12,060		)	—
Other, net	—		—			(10		)	—			—			(10		)
Net cash provided (used) by investing activities	—		15,171			12,348			(1,398		)	(28,918		)	(2,797		)

Cash flows from financing activities:
Borrowings under Media General Revolving Credit Facility	—		—			30,000			—			—			30,000
Repayments under Media General Revolving Credit Facility	—		—			(30,000		)	—			—			(30,000		)
Repayment of borrowings under Shield Media Credit Agreement	—		—			—			(800		)	—			(800		)
Repayment of other borrowings	—		—			—			(290		)	—			(290		)
Payment of dividend	—		—			(19,502		)	—			19,502			—
Proceeds from intercompany borrowings	—		—			—			2,644			(2,644		)	—
Payments on intercompany borrowing	—		(12,060		)	—			—			12,060			—
Exercise of stock options	—		—			1,408			—			—			1,408
Other, net	—		(149		)	(71		)	—			—			(220		)
Net cash provided (used) by financing activities	—		(12,209		)	(18,165		)	1,554			28,918			98

Net (decrease) increase in cash and cash equivalents	—		(1,103		)	(6,413		)	18			—			(7,498		)
Cash and cash equivalents at beginning of period	—		1,103			35,925			4,063			—			41,091
Cash and cash equivalents at end of period	$	—	$	—		$	29,512		$	4,081		$	—		$	33,593

Media General, Inc.

Condensed Consolidating Statement of Cash Flows

Year to date through March 31, 2015

(in thousands)



	Media General			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Cash flows from operating activities:
Net cash provided (used) by operating activities	$	(1,402	)	$	12,021		$	42,361		$	3,439		$	—		$	56,419

Cash flows from investing activities:
Capital expenditures	—			(2,314		)	(4,288		)	(607		)	—			(7,209		)
Proceeds from sale the of PP&E	—			36			226			—			—			262
Proceeds from spectrum sale	—			—			620			—			—			620
Receipt of dividend	—			19,502			—			—			(19,502		)	—
Payments from intercompany borrowings	2,025			—			12,073			—			(14,098		)	—
Payment of capital contributions	(3,011		)	—			—			—			3,011			—
Other, net	—			—			—			(5		)	—			(5		)
Net cash provided (used) by investing activities	(986		)	17,224			8,631			(612		)	(30,589		)	(6,332		)

Cash flows from financing activities:
Repayment of borrowings under Media General Credit Agreement	—			—			(35,000		)	—			—			(35,000		)
Repayment of borrowings under Shield Media Credit Agreement	—			—			—			(600		)	—			(600		)
Repayment of other borrowings	—			—			—			(290		)	—			(290		)
Payment of dividend	—			—			(19,502		)	—			19,502			—
Payments on intercompany borrowing	—			(14,098		)	—			—			14,098			—
Receipt of capital contributions	—			3,011			—			—			(3,011		)	—
Exercise of stock options	—			—			958			—			—			958
Other, net	—			—			(777		)	13			—			(764		)
Net cash (used) provided by financing activities	—			(11,087		)	(54,321		)	(877		)	30,589			(35,696		)

Net (decrease) increase in cash and cash equivalents	(2,388		)	18,158			(3,329		)	1,950			—			14,391
Cash and cash equivalents at beginning of period	2,388			9,658			27,371			4,503			—			43,920
Cash and cash equivalents at end of period	$	—		$	27,816		$	24,042		$	6,453		$	—		$	58,311