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Note 9 - Other
6 Months Ended
Jun. 30, 2014
Other Note Disclosure [Abstract]  
Other Note Disclosure [Text Block]

Note 9: Other


In May of 2014, the Company sold its KRON-TV building in San Francisco to a third party for $24.5 million of net cash proceeds. The Company has leased the space back from the third party through December 31, 2014, with no rental payments required. The Company is required to defer the gain on the sale until the end of the lease term. The Company anticipates recording a gain in the range of $10 million in the fourth quarter. The Company has entered into a sublease for studio and office space in San Francisco and expects to physically move its television operations to the new location in the fourth quarter of 2014.


In April of 2014, the Company adopted a plan to restructure certain corporate and shared service operations intended to save $10 million in operating costs annually. The Company recorded severance expense of $4.5 million in the second quarter and expects to record a total of $0.7 million and $0.2 million of accelerated performance-accelerated restricted stock and stock option expense, respectively, in 2014 to implement the plan. Accrued severance costs are included in the “Accrued expenses and other liabilities” line item on the consolidated condensed balance sheet. Following severance payments of $0.7 million, the remaining severance liability related to the corporate restructuring was approximately $3.8 million as of June 30, 3014.


In the second quarter of 2014, the Company wrote off the value of certain broadcast equipment and other assets that will no longer be utilized as planned and cannot be recovered through sale which resulted in a loss of $1 million, reflected in the “Loss (gain) related to property and equipment, net” line on the statements of comprehensive income for the three months ended June 30, 2014. In March of 2014, the Company received just under $1 million of insurance proceeds as settlement for a damaged antenna used by the Company’s television station in Richmond, Virginia. In the first quarter of 2014, the Company wrote down the value of certain held-for-sale real property in Florence, South Carolina, to its estimated fair value less costs to sell of $0.2 million; the Company recorded a loss of $0.2 million. These items resulted in a combined loss of $0.2 million for the six months ended June 30, 2014.