Guarantor Financial Information

6 Months Ended

Jun. 30, 2016

Condensed Financial Statements Guarantor Financials [Abstract]

Guarantor Financial Information

Guarantor Financial Information

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

June 30, 2016

(in thousands)

	Media General		LIN Television Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—		$	20,659	$	4,719	$	—		$	25,378
Trade accounts receivable, net	—		82,711			216,734		8,167		—			307,612
Prepaid expenses and other current assets	—		2,667			25,582		663		—			28,912
Total current assets	—		85,378			262,975		13,549		—			361,902
Property and equipment, net	—		151,810			301,963		1,923		—			455,696
Other assets, net	—		540			29,604		1,081		—			31,225
Definite lived intangible assets, net	—		351,432			446,799		30,714		—			828,945
Broadcast licenses	—		—			1,025,800		71,300		—			1,097,100
Goodwill	—		527,077			995,688		21,859		—			1,544,624
Advances to consolidated subsidiaries	—		(238,532		)	235,061		3,471		—			—
Investment in consolidated subsidiaries	1,434,003		1,324,524			—		—		(2,758,527		)	—
Total assets	$	1,434,003	$	2,202,229		$	3,297,890	$	143,897	$	(2,758,527	)	$	4,319,492
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
Current liabilities:
Trade accounts payable	$	—	$	753		$	24,716	$	8	$	—		$	25,477
Accrued salaries and wages	—		6,058			21,820		200		—			28,078
Accrued expenses and other current liabilities	—		19,912			75,462		1,678		—			97,052
Current installments of long-term debt	—		—			—		3,373		—			3,373
Current installments of obligation under capital leases	—		574			246		—		—			820
Total current liabilities	—		27,297			122,244		5,259		—			154,800
Long-term debt, net	—		668,377			1,510,888		22,486		—			2,201,751
Deferred tax liability and other long-term tax liabilities	—		58,961			245,704		—		—			304,665
Long-term capital lease obligations	—		12,848			942		—		—			13,790
Retirement and postretirement plans	—		—			176,045		—		—			176,045
Other liabilities	—		743			25,999		4,806		—			31,548
Total liabilities	—		768,226			2,081,822		32,551		—			2,882,599
Noncontrolling interests	—		—			—		2,890		—			2,890
Total stockholders (deficit) equity	1,434,003		1,434,003			1,216,068		108,456		(2,758,527		)	1,434,003
Total liabilities, noncontrolling interest and stockholders' equity (deficit)	$	1,434,003	$	2,202,229		$	3,297,890	$	143,897	$	(2,758,527	)	$	4,319,492

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 Consolidating Statement of Comprehensive Income

For the Three Months Ended June 30, 2016

(in thousands)

	Media General		LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries				Eliminations			Consolidated
Net operating revenue	$	—	$	107,119		$	258,965		$	7,258			$	(10,636	)	$	362,706
Operating costs:
Operating expenses, excluding depreciation expense	—		42,178			114,282			3,666				(6,527		)	153,599
Selling, general and administrative expenses	—		23,106			52,214			988				(150		)	76,158
Amortization of program licenses rights	—		4,663			7,409			505				(501		)	12,076
Corporate and other expenses	—		—			18,094			7			—	—			18,101
Depreciation and amortization	—		14,589			24,891			857				—			40,337
Loss related to property and equipment, net	—		18			43			26				—			87
Merger-related expenses	—		—			1,561			—				—			1,561
Restructuring expenses	—		—			996			—				—			996
Operating income (loss)	—		22,565			39,475			1,209				(3,458		)	59,791
Other income (expense):
Interest expense	—		(10,667		)	(17,608		)	(254		)		—			(28,529		)
Intercompany income and (expenses)	—		(10,848		)	10,848			—				—			—
Equity in income (loss) from operations of consolidated subsidiaries	18,498		22,209			—			—				(40,707		)	—
Other, net	—		(12		)	134			—				—			122
Total other income (expense)	18,498		682			(6,626		)	(254		)		(40,707		)	(28,407		)
Income (loss) before income taxes	18,498		23,247			32,849			955				(44,165		)	31,384
Income tax benefit (expense)	—		(4,749		)	(7,407		)	—				—			(12,156		)
Net income (loss)	$	18,498	$	18,498		$	25,442		$	955			$	(44,165	)	$	19,228
Net income (loss) attributable to noncontrolling interest	—		—			—			730				—			730
Net income (loss) attributable to Media General	$	18,498	$	18,498		$	25,442		$	225			$	(44,165	)	$	18,498
Other comprehensive income	—		—			—			—				—			—
Total comprehensive income (loss) attributable to Media General	$	18,498	$	18,498		$	25,442		$	225			$	(44,165	)	$	18,498

Media General, Inc.

Condensed Consolidating Statement of Comprehensive Income

For the Six Months Ended June 30, 2016

(in thousands)

	Media General			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net operating revenue	$	—		$	206,210		$	494,122		$	25,113		$	(19,276	)	$	706,169
Operating costs:
Operating expenses, excluding depreciation expense	—			84,338			214,916			17,113			(11,625		)	304,742
Selling, general and administrative expenses	—			45,799			105,755			3,240			(315		)	154,479
Amortization of program licenses rights	—			9,143			14,983			1,018			(1,002		)	24,142
Corporate and other expenses	—			—			28,444			9			—			28,453
Depreciation and amortization	—			28,988			48,839			2,631			—			80,458
(Gain) loss related to property and equipment, net	—			11			(790		)	98			—			(681		)
Merger-related expenses	—			—			67,443			—			—			67,443
Restructuring expenses	—			—			4,978			—			—			4,978
Operating income (loss)	—			37,931			9,554			1,004			(6,334		)	42,155
Other income (expense):
Interest expense	—			(21,361		)	(35,194		)	(530		)	—			(57,085		)
Intercompany income and (expenses)	—			(20,955		)	21,299			(344		)	—			—
Equity in income (loss) from operations of consolidated subsidiaries	(7,692		)	6,251			—			—			1,441			—
Other, net	—			(12		)	208			—			—			196
Total other income (expense)	(7,692		)	(36,077		)	(13,687		)	(874		)	1,441			(56,889		)
Income (loss) before taxes	(7,692		)	1,854			(4,133		)	130			(4,893		)	(14,734		)
Income tax benefit (expense)	—			(9,546		)	17,177			618			—			8,249
Net income (loss)	$	(7,692	)	$	(7,692	)	$	13,044		$	748		$	(4,893	)	$	(6,485	)
Net income (loss) attributable to noncontrolling interest	—			—			—			1,207			—			1,207
Net income (loss) attributable to Media General	$	(7,692	)	$	(7,692	)	$	13,044		$	(459	)	$	(4,893	)	$	(7,692	)
Other comprehensive income	—			—			—			—			—			—
Total comprehensive income (loss) attributable to Media General	$	(7,692	)	$	(7,692	)	$	13,044		$	(459	)	$	(4,893	)	$	(7,692	)

Media General, Inc.

Condensed Consolidating Statement of Comprehensive Income

For the Three Months Ended June 30, 2015

(in thousands)

	Media General		LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Net operating revenue	$	—	$	94,258		$	216,770		$	16,941		$	(7,446	)	$	320,523
Operating costs:
Operating expenses, excluding depreciation expense	—		40,294			88,410			9,856			(4,391		)	134,169
Selling, general and administrative expenses	—		22,193			53,009			4,152			(303		)	79,051
Amortization of program license rights	—		4,363			7,250			434			—			12,047
Corporate and other expenses	—		2,661			9,703			2			—			12,366
Depreciation and amortization	—		15,522			24,562			2,534			—			42,618
(Gain) loss related to property and equipment, net	—		165			(361		)	—			—			(196		)
Merger-related expenses	—		950			2,666			—			—			3,616
Restructuring expenses	—		—			—			—			—			—
Operating income (loss)	—		8,110			31,531			(37		)	(2,752		)	36,852
Other income (expense):
Interest expense, net	1		(9,555		)	(19,325		)	(409		)	—			(29,288		)
Debt modification and extinguishment costs	—		—			(1,827		)	—			—			(1,827		)
Intercompany income and (expenses)	—		(763		)	949			(186		)	—			—
Equity in income (loss) from operations of consolidated subsidiaries	1,634		2,511			—			—			(4,145		)	—
Other, net	—		4			118			2,500			—			2,622
Total other income (expense)	1,635		(7,803		)	(20,085		)	1,905			(4,145		)	(28,493		)
Income (loss) before income taxes	1,635		307			11,446			1,868			(6,897		)	8,359
Income tax benefit (expense)	—		1,325			(5,599		)	658			—			(3,616		)
Net income (loss)	$	1,635	$	1,632		$	5,847		$	2,526		$	(6,897	)	$	4,743
Net income (loss) attributable to noncontrolling interests	—		—			—			3,108			—			3,108
Net income (loss) attributable to Media General	$	1,635	$	1,632		$	5,847		$	(582	)	$	(6,897	)	$	1,635
Other comprehensive income	—		—			—			—			—			—
Total comprehensive income (loss) attributable to Media General	$	1,635	$	1,632		$	5,847		$	(582	)	$	(6,897	)	$	1,635

Media General, Inc.

Condensed Consolidating Statement of Comprehensive Income

For the Six Months Ended June 30, 2015

(in thousands)

	Media General			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Net operating revenue	$	—		$	182,476		$	416,500		$	30,683		$	(12,402	)	$	617,257
Operating costs:
Operating expenses, excluding depreciation expense	—			77,893			172,169			17,398			(7,415		)	260,045
Selling, general and administrative expenses	—			45,717			106,227			8,289			(712		)	159,521
Amortization of program license rights	—			8,541			14,351			913			—			23,805
Corporate and other expenses	—			5,862			19,161			(6		)	—			25,017
Depreciation and amortization	—			29,658			49,234			4,009			—			82,901
(Gain) loss related to property and equipment, net	—			129			(553		)	—			—			(424		)
Merger-related expenses	—			2,324			6,569			—			—			8,893
Restructuring expenses	—			—			—			—			—			—
Operating income (loss)	—			12,352			49,342			80			(4,275		)	57,499
Other income (expense):
Interest expense, net	—			(20,205		)	(39,412		)	(694		)	—			(60,311		)
Debt modification and extinguishment costs	—			—			(2,440		)	—			—			(2,440		)
Intercompany income and (expenses)	—			(6,298		)	6,716			(418		)	—			—
Equity in income (loss) from operations of consolidated subsidiaries	(5,798		)	2,077			—			—			3,721			—
Other, net	—			86			826			5,000			—			5,912
Total other income (expense)	(5,798		)	(24,340		)	(34,310		)	3,888			3,721			(56,839		)
Income (loss) before income taxes	(5,798		)	(11,988		)	15,032			3,968			(554		)	660
Income tax benefit (expense)	—			6,188			(7,873		)	1,226			—			(459		)
Net income (loss)	$	(5,798	)	$	(5,800	)	$	7,159		$	5,194		$	(554	)	$	201
Net income (loss) attributable to noncontrolling interests	—			—			(178		)	6,177			—			5,999
Net income (loss) attributable to Media General	$	(5,798	)	$	(5,800	)	$	7,337		$	(983	)	$	(554	)	$	(5,798	)
Other comprehensive income	—			—			—			—			—			—
Total comprehensive income (loss) attributable to Media General	$	(5,798	)	$	(5,800	)	$	7,337		$	(983	)	$	(554	)	$	(5,798	)

Media General, Inc.

Condensed Consolidating Statement of Cash Flows

Year to date through June 30, 2016

(in thousands)

	Media General		LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	—	$	7,776		$	30,052		$	878		$	—		$	38,706
Cash flows from investing activities:
Capital expenditures	—		(5,973		)	(18,127		)	(214		)	—			(24,314		)
Proceeds from the sale of PP&E	—		31			4,018			2,023			—			6,072
Receipt of dividend	—		39,005						—			(39,005		)	—
Advances on intercompany borrowings	—		(2,644		)	—			—			2,644			—
Payments from intercompany borrowings	—		—			39,005			—			(39,005		)	—
Other, net	—		—			(114		)	—			—			(114		)
Net cash provided (used) by investing activities	—		30,419			24,782			1,809			(75,366		)	(18,356		)
Cash flows from financing activities:
Borrowings under Media General Revolving Credit Facility	—		—			60,000			—			—			60,000
Repayments under Media General Revolving Credit Facility	—		—			(60,000		)	—			—			(60,000		)
Repayment of borrowings under Shield Media Credit Agreement	—		—			—			(1,600		)	—			(1,600		)
Repayment of other borrowings	—		—			—			(431		)	—			(431		)
Payment for the acquisition of noncontrolling interest	—		—			(35,305		)	—			—			(35,305		)
Payment of dividend	—		—			(39,005		)	—			39,005			—
Proceeds from intercompany borrowings						2,644						(2,644		)	—
Payments on intercompany borrowing	—		(39,005		)				—			39,005			—
Exercise of stock options	—		—			1,714			—			—			1,714
Other, net	—		(293		)	(148		)	—			—			(441		)
Net cash provided (used) by financing activities	—		(39,298		)	(70,100		)	(2,031		)	75,366			(36,063		)
Net (decrease) increase in cash and cash equivalents	—		(1,103		)	(15,266		)	656			—			(15,713		)
Cash and cash equivalents at beginning of period	—		1,103			35,925			4,063			—			41,091
Cash and cash equivalents at end of period	$	—	$	—		$	20,659		$	4,719		$	—		$	25,378

Media General, Inc.

Condensed Consolidating Statement of Cash Flows

Year to date through June 30, 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	)	$	6,528		$	83,285		$	7,977		$	—		$	96,388
Cash flows from investing activities:
Capital expenditures	—			(8,610		)	(13,876		)	(1,564		)	—			(24,050		)
Release of restricted cash at qualified intermediary	—			—			119,903			—			—			119,903
Proceeds from sale the of PP&E	—			50			641			—			—			691
Proceeds from spectrum sale	—			—			620			2,500			—			3,120
Receipt of dividend	—			39,005			—			—			(39,005		)	—
Payments from intercompany borrowings	2,025			—			24,230			—			(26,255		)	—
Payment of capital contributions	(3,011		)	—			—			—			3,011			—
Other, net	—			—			—			(69		)	—			(69		)
Net cash provided (used) by investing activities	(986		)	30,445			131,518			867			(62,249		)	99,595
Cash flows from financing activities:
Repayment of borrowings under Media General Credit Agreement	—			—			(135,000		)	—			—			(135,000		)
Repayment of borrowings under Shield Media Credit Agreement	—			—			—			(1,200		)	—			(1,200		)
Repayment of other borrowings	—			—			—			(580		)	—			(580		)
Payment for share repurchase	—			—			(18,747		)	—			—			(18,747		)
Payment of dividend	—			—			(39,005		)	—			39,005			—
Payments on intercompany borrowing	—			(26,255		)	—			—			26,255			—
Payment for the acquisition of noncontrolling interest	—			(9,218		)	—			—			—			(9,218		)
Receipt of capital contributions	—			3,011			—			—			(3,011		)	—
Cash paid for debt modification	—			—			(3,425		)	—			—			(3,425		)
Exercise of stock options	—			—			1,817			—			—			1,817
Other, net	—			(207		)	(1,215		)	(50		)	—			(1,472		)
Net cash (used) provided by financing activities	—			(32,669		)	(195,575		)	(1,830		)	62,249			(167,825		)
Net (decrease) increase in cash and cash equivalents	(2,388		)	4,304			19,228			7,014			—			28,158
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	$	—		$	13,962		$	46,599		$	11,517		$	—		$	72,078