Discontinued Operations

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued operations

On June 29, 2015, we completed the spin-off of our publishing businesses, creating a new independent publicly traded company, Gannett Co., Inc., through the distribution of 98.5% of our interest in Gannett to holders of our common shares. On June 29, 2015, each of our shareholders of record as of the close of business on the record date of June 22, 2015, received one share of Gannett common stock for every two shares of TEGNA common stock held. Following the distribution, we own 1.5% of Gannett outstanding common shares. We will continue to own Gannett shares for a period of time not to exceed 5 years after the distribution. In conjunction with the spin-off of the publishing businesses, we entered into a separation and distribution agreement with Gannett and also entered into various other agreements to effect the separation and provide a framework for a short term set of transition services as well as a tax matters agreement and an employee matters agreement.

During the fourth quarter of 2015, we sold our subsidiaries Clipper Magazine (Clipper), a direct mail advertising magazine business, and Mobestream Media (Mobestream), maker of a mobile rewards/coupon platform, to Valassis Direct Mail, Inc. On March 18, 2016, we sold Sightline Media (Sightline) to Regent Companies LLC. Our Sightline business unit was previously included within our Other Segment and was classified as held for sale as of December 31, 2015. With the sale of these businesses, we divested all the operations of our Other Segment. Accordingly, we have presented the financial condition and results of operations of the former Publishing and Other Segments as discontinued operations.

Financial Statement Presentation

The former publishing businesses and businesses within the Other Segment are presented as discontinued operations in our Condensed Consolidated Balance Sheet and the Consolidated Statements of Income. In our Consolidated Statement of Cash Flows, the cash flows from discontinued operations are not separately classified but supplemental cash flow information is presented below. The financial results of discontinued operations through June 30, 2016 are presented as a loss from discontinued operations, net of income taxes, on our Consolidated Statements of Income. For earnings per share information on discontinued operations see Note 9. Discontinued operations for 2016 are attributable to operations of our Sightline business through the date of sale on March 18, 2016, while results for 2015 are comprised of the operating results of both the Publishing Segment and Other Segment. The table below presents the financial results of discontinued operations (in thousands):

	Quarter Ended
	June 28, 2015
	Publishing			Other			Total
Operating revenues	$	705,255		$	59,465		$	764,720
Income (loss) from discontinued operations, before income taxes	107,862			2,079			109,941
Provision for income taxes	(31,607		)	(997		)	(32,604		)
Income (loss) from discontinued operations, net of tax	76,255			1,082			77,337

	Six Months Ended
	June 30, 2016			June 28, 2015
	Other			Publishing			Other			Total
Operating revenues	$	3,379		$	1,400,006		$	105,988		$	1,505,994
Income (loss) from discontinued operations, before income taxes	(6,299		)	172,720			(9,789		)	162,931
Provision for income taxes	(1,175		)	(44,876		)	2,763			(42,113		)
Income (loss) from discontinued operations, net of tax	(7,474		)	127,844			(7,026		)	120,818

The depreciation, amortization, capital expenditures and significant cash investing items of discontinued operations were as follows (in thousands):

	Six Months Ended
	June 30, 2016		June 28, 2015
	Other		Publishing			Other			Total
Depreciation	$	112	$	49,542		$	404		$	49,946
Amortization	—		7,008			—			7,008
Capital expenditures	—		(20,252		)	(273		)	(20,525		)
Payments for acquisitions, net of cash acquired	—		(28,668		)	—			(28,668		)
Payments for investments	—		(2,000		)	—			(2,000		)
Proceeds from investments	—		12,402			—			12,402

The financial results reflected above may not represent our Publishing and Other Segments stand-alone operating results, as the results reported within income from discontinued operations, net, include only certain costs that are directly attributable to those businesses and exclude certain corporate overhead costs that were previously allocated for each period. In addition to the cash flows presented above, in June 2015, prior to the spin of our former Publishing business, we made a voluntary pension contribution of $100 million to the GRP.