Note 11. Guarantor Financial Information

6 Months Ended

Jun. 24, 2012

Condensed Financial Statements [Text Block]

11.        The Company’s subsidiaries guarantee the debt securities of the parent company. The Company’s subsidiaries are 100% owned except for the Supplemental 401(k) Plan; all subsidiaries except those in the non-guarantor column (the Supplemental 401(k) Plan) currently guarantee the debt securities. These guarantees are full and unconditional and on a joint and several basis. The following financial information presents condensed consolidating balance sheets, statements of operations, and statements of cash flows for the parent company, the Guarantor Subsidiaries, and the Non-Guarantor Subsidiaries, together with certain eliminations.

 Media General, Inc.
 Condensed Consolidating Balance Sheet

 As of June 24, 2012

 (In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	15,419		$	1,242		$	-		$	-		$	16,661
Accounts receivable - net		-			60,702			-			-			60,702
Other		9,782			9,014			-			-			18,796
Assets of discontinued operations		-			183,615			-			-			183,615
Total current assets		25,201			254,573			-			-			279,774
Investment in and advances to subsidiaries		62,133			1,997,804			-			(2,059,937	)		-
Intercompany note receivable		677,941			-			-			(677,941	)		-
Other assets		29,244			6,446			180			-			35,870
Property, plant and equipment - net		22,445			136,963			-			-			159,408
FCC licenses and other intangibles - net		-			201,250			-			-			201,250
Excess cost over fair value of net identifiable assets of acquired businesses		-			247,107			-			-			247,107
TOTAL ASSETS	$	816,964		$	2,844,143		$	180		$	(2,737,878	)	$	923,409
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	14,605		$	4,735		$	-		$	(6	)	$	19,334
Accrued expenses and other liabilities		39,374			15,270			-			-			54,644
Liabilities of discontinued operations		-			32,547			-			-			32,547
Total current liabilities		53,979			52,552			-			(6	)		106,525
Long-term debt		651,904			7			-			-			651,911
Intercompany loan		-			677,941			-			(677,941	)		-
Retirement, post-retirement and post-employment plans		218,820			-			-			-			218,820
Deferred income taxes		-			52,721			-			-			52,721
Other liabilities and deferred credits		19,456			2,463			775			-			22,694
Stockholders' equity (deficit):
Common stock		116,760			4,872			-			(4,872	)		116,760
Additional paid-in capital		46,989			2,435,790			(2,034	)		(2,435,823	)		44,922
Accumulated other comprehensive loss		(185,116	)		-			-			-			(185,116	)
Retained earnings (accumulated deficit)		(105,828	)		(382,203	)		1,439			380,764			(105,828	)
Total stockholders' equity (deficit)		(127,195	)		2,058,459			(595	)		(2,059,931	)		(129,262	)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)	$	816,964		$	2,844,143		$	180		$	(2,737,878	)	$	923,409

 Media General, Inc.
 Condensed Consolidating Balance Sheet

 As of December 25, 2011

 (In thousands)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	21,674		$	1,434		$	-		$	-		$	23,108
Accounts receivable - net		-			59,260			-			-			59,260
Other		3,698			13,815			-			-			17,513
Assets of discontinued operations		-			337,853			-			-			337,853
Total current assets		25,372			412,362			-			-			437,734
Investment in and advances to subsidiaries		233,450			1,985,266			-			(2,218,716	)		-
Intercompany note receivable		677,469			-			-			(677,469	)		-
Other assets		19,694			8,451			205			-			28,350
Property, plant and equipment - net		25,813			144,014			-			-			169,827
FCC licenses and other intangibles - net		-			203,023			-			-			203,023
Excess of cost over fair value of net identifiable assets of acquired businesses		-			247,107			-			-			247,107
TOTAL ASSETS	$	981,798		$	3,000,223		$	205		$	(2,896,185	)	$	1,086,041
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	11,390		$	5,247		$	-		$	(6	)	$	16,631
Accrued expenses and other liabilities		33,430			13,385			-			-			46,815
Liabilities of discontinued operations		-			38,269			-			-			38,269
Total current liabilities		44,820			56,901			-			(6	)		101,715
Long-term debt		658,199			-			-			-			658,199
Intercompany loan		-			677,469			-			(677,469	)		-
Retirement, post-retirement and post-employment plans		223,132			-			-			-			223,132
Deferred income taxes		-			45,954			-			-			45,954
Other liabilities and deferred credits		19,403			2,890			795			-			23,088
Stockholders' equity (deficit):
Common stock		115,487			4,872			-			(4,872	)		115,487
Additional paid-in capital		31,002			2,435,790			(1,994	)		(2,436,087	)		28,711
Accumulated other comprehensive loss		(185,116	)		-			-			-			(185,116	)
Retained earnings (accumulated deficit)		74,871			(223,653	)		1,404			222,249			74,871
Total stockholders' equity (deficit)		36,244			2,217,009			(590	)		(2,218,710	)		33,953
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)	$	981,798		$	3,000,223		$	205		$	(2,896,185	)	$	1,086,041

 Media General, Inc.
 Condensed Consolidating Statements of Operations
 and Comprehensive Loss

 Three Months Ended June 24, 2012

 (In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Revenues	$	7,267		$	84,355		$	-		$	(7,510	)	$	84,112
Operating costs:
Employee compensation		5,299			27,205			(202	)		-			32,302
Production		-			19,169			-			(246	)		18,923
Selling, general and administrative		1,455			16,266			-			(7,298	)		10,423
Depreciation and amortization		565			5,545			-			-			6,110
Total operating costs		7,319			68,185			(202	)		(7,544	)		67,758
Operating income (loss)		(52	)		16,170			202			34			16,354
Other income (expense):
Interest expense		(21,641	)		(16	)		-			-			(21,657	)
Debt modification and extinguishment costs		(7,689	)		-			-			-			(7,689	)
Intercompany interest income (expense)		20,866			(20,866	)		-			-			-
Investment income (loss) - consolidated affiliates		(138,038	)		-			-			138,038			-
Other, net		258			(22	)		-			-			236
Total other income (expense)		(146,244	)		(20,904	)		-			138,038			(29,110	)
Income (loss) from continuing operations before income taxes		(146,296	)		(4,734	)		202			138,072			(12,756	)
Income tax expense		-			3,409			-			-			3,409
Income (loss) from continuing operations		(146,296	)		(8,143	)		202			138,072			(16,165	)
Discontinued operations (net of tax):
Income from discontinued operations		-			1,600			-			(34	)		1,566
Loss related to divestiture of discontinued operations		-			(131,697	)		-			-			(131,697	)
Net income (loss)	$	(146,296	)	$	(138,240	)	$	202		$	138,038		$	(146,296	)
Comprehensive income (loss)	$	(146,296	)	$	(138,240	)	$	202		$	138,038		$	(146,296	)

 Media General, Inc.
 Condensed Consolidating Statements of Operations
 and Comprehensive Loss

 Three Months Ended June 26, 2011

 (In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Revenues	$	7,891		$	72,004		$	-		$	(8,173	)	$	71,722
Operating costs:
Employee compensation		3,466			27,043			(289	)		-			30,220
Production		-			17,969			-			(190	)		17,779
Selling, general and administrative		1,902			16,388			-			(8,027	)		10,263
Depreciation and amortization		659			6,620			-			-			7,279
Total operating costs		6,027			68,020			(289	)		(8,217	)		65,541
Operating income		1,864			3,984			289			44			6,181
Other income (expense):
Interest expense		(17,180	)		(10	)		-			-			(17,190	)
Debt modification and extinguishment costs		-			-			-			-			-
Intercompany interest income (expense)		17,210			(17,210	)		-			-			-
Investment income (loss) - consolidated affiliates		(18,502	)		-			-			18,502			-
Other, net		228			(1	)		-			-			227
Total other income (expense)		(18,244	)		(17,221	)		-			18,502			(16,963	)
Income (loss) from continuing operations before income taxes		(16,380	)		(13,237	)		289			18,546			(10,782	)
Income tax expense (benefit)		(998	)		3,556			-			-			2,558
Income (loss) from continuing operations		(15,382	)		(16,793	)		289			18,546			(13,340	)
Discontinued operations (net of tax):
Loss from discontinued operations (net of taxes)		-			(1,998	)		-			(44	)		(2,042	)
Loss related to divestiture of discontinued operations		-			-			-			-			-
Net income (loss)	$	(15,382	)	$	(18,791	)	$	289		$	18,502		$	(15,382	)
Comprehensive income (loss)	$	(13,822	)	$	(18,791	)	$	289		$	18,502		$	(13,822	)

 Media General, Inc.
 Condensed Consolidating Statements of Operations

 and Comprehensive Loss

 Six Months Ended June 24, 2012

 (In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Revenues	$	15,821		$	159,695		$	-		$	(16,285	)	$	159,231
Operating costs:
Employee compensation		14,846			54,375			(35	)		-			69,186
Production		-			37,484			-			(473	)		37,011
Selling, general and administrative		2,846			32,216			-			(15,873	)		19,189
Depreciation and amortization		1,498			11,927			-			-			13,425
Total operating costs		19,190			136,002			(35	)		(16,346	)		138,811
Operating income (loss)		(3,369	)		23,693			35			61			20,420
Other income (expense):
Interest expense		(36,777	)		(31	)		-			-			(36,808	)
Debt modification and extinguishment costs		(18,097	)		-			-			-			(18,097	)
Intercompany interest income (expense)		35,571			(35,571	)		-			-			-
Investment income (loss) - consolidated affiliates		(158,515	)		-			-			158,515			-
Other, net		467			(46	)		-			-			421
Total other income (expense)		(177,351	)		(35,648	)		-			158,515			(54,484	)
Income (loss) from continuing operations before income taxes		(180,720	)		(11,955	)		35			158,576			(34,064	)
Income tax expense		-			6,817			-			-			6,817
Income (loss) from continuing operations		(180,720	)		(18,772	)		35			158,576			(40,881	)
Discontinued operations (net of tax):
Loss from discontinued operations		-			(8,081	)		-			(61	)		(8,142	)
Loss related to divestiture of discontinued operations		-			(131,697	)		-			-			(131,697	)
Net income (loss)	$	(180,720	)	$	(158,550	)	$	35		$	158,515		$	(180,720	)
Comprehensive income (loss)	$	(180,720	)	$	(158,550	)	$	35		$	158,515		$	(180,720	)

 Media General, Inc.
 Condensed Consolidating Statements of Operations
 and Comprehensive Loss

 Six Months Ended June 26, 2011

 (In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Revenues	$	17,219		$	139,427		$	-		$	(17,636	)	$	139,010
Operating costs:
Employee compensation		12,300			54,617			(179	)		-			66,738
Production		-			35,204			-			(322	)		34,882
Selling, general and administrative		3,628			32,866			-			(17,390	)		19,104
Depreciation and amortization		1,279			13,218			-			-			14,497
Total operating costs		17,207			135,905			(179	)		(17,712	)		135,221
Operating income		12			3,522			179			76			3,789
Other income (expense):
Interest expense		(33,733	)		(20	)		-			-			(33,753	)
Debt modification and extinguishment costs		-			-			-			-			-
Intercompany interest income (expense)		34,364			(34,364	)		-			-			-
Investment income (loss) - consolidated affiliates		(44,253	)		-			-			44,253			-
Other, net		469			-			-			-			469
Total other income (expense)		(43,153	)		(34,384	)		-			44,253			(33,284	)
Income (loss) from continuing operations before income taxes		(43,141	)		(30,862	)		179			44,329			(29,495	)
Income tax expense (benefit)		(1,955	)		7,109			-			-			5,154
Income (loss) from continuing operations		(41,186	)		(37,971	)		179			44,329			(34,649	)
Discontinued operations (net of tax):
Loss from discontinued operations (net of tax)		-			(6,461	)		-			(76	)		(6,537	)
Loss related to divestiture of discontinued operations		-			-			-			-			-
Net income (loss)	$	(41,186	)	$	(44,432	)	$	179		$	44,253		$	(41,186	)
Comprehensive income (loss)	$	(38,128	)	$	(44,432	)	$	179		$	44,253		$	(38,128	)

 Media General, Inc.

 Condensed Consolidating Statements of Cash Flows

  Six Months Ended June 24, 2012

 (In thousands, unaudited)

	Media General Corporate			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Media General Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	17,928		$	2,243		$	40		$	-		$	20,211
Cash flows from investing activities:
Capital expenditures		(412	)		(3,841	)		-			-			(4,253	)
Collateral deposit related to letters of credit		(5,441	)		-			-			-			(5,441	)
Net change in intercompany note receivable		(472	)		-			-			472			-
Other, net		894			942			-			-			1,836
Net cash (used) provided by investing activities		(5,431	)		(2,899	)		-			472			(7,858	)
Cash flows from financing activities:
Increase in borrowings		395,500			-			-			-			395,500
Repayment of borrowings		(387,098	)		-			-			-			(387,098	)
Net change in intercompany loan		-			472			-			(472	)		-
Debt issuance costs		(27,172	)		-			-			-			(27,172	)
Other, net		18			(8	)		(40	)		-			(30	)
Net cash (used) provided by financing activities		(18,752	)		464			(40	)		(472	)		(18,800	)
Net decrease in cash and cash equivalents		(6,255	)		(192	)		-			-			(6,447	)
Cash and cash equivalents at beginning of period		21,674			1,434			-			-			23,108
Cash and cash equivalents at end of period	$	15,419		$	1,242		$	-		$	-		$	16,661

 Media General, Inc.
 Condensed Consolidating Statements of Cash Flows

 Six Months Ended June 26, 2011

 (In thousands, unaudited)

	Media General  Corporate			Guarantor  Subsidiaries			Non-Guarantor  Subsidiaries			Eliminations			Media General Consolidated
Cash flows from operating activities:
Net cash (used) provided by operating activities	$	(7,596	)	$	4,634		$	24		$	-		$	(2,938	)
Cash flows from investing activities:
Capital expenditures		(936	)		(9,643	)		-			-			(10,579	)
Collateral deposit related to letters of credit		-			-			-			-			-
Net change in intercompany note receivable		(5,495	)		-			-			5,495			-
Other, net		53			206			-			-			259
Net cash (used) provided by investing activities		(6,378	)		(9,437	)		-			5,495			(10,320	)
Cash flows from financing activities:
Increase in borrowings		45,000			-			-			-			45,000
Repayment of borrowings		(50,000	)		-			-			-			(50,000	)
Net change in intercompany loan		-			5,495			-			(5,495	)		-
Debt issuance costs		-			-			-			-			-
Other, net		21			-			(24	)		-			(3	)
Net cash (used) provided by financing activities		(4,979	)		5,495			(24	)		(5,495	)		(5,003	)
Net (decrease) increase in cash and cash equivalents		(18,953	)		692			-			-			(18,261	)
Cash and cash equivalents at beginning of period		30,893			967			-			-			31,860
Cash and cash equivalents at end of period	$	11,940		$	1,659		$	-		$	-		$	13,599