XML 34 R23.htm IDEA: XBRL DOCUMENT v3.5.0.2
Segment Information
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Segment Information
Segment Information
We determine our business segments based upon our management and internal reporting structures. Our reportable segments are strategic businesses that offer different products and services.
Our television segment includes 15 ABC affiliates, five NBC affiliates, two FOX affiliates, two CBS affiliates and four non big-four affiliated stations. We also own five Azteca America Spanish-language affiliates. Our television stations reach approximately 18% of the nation’s television households. Television stations earn revenue primarily from the sale of advertising time to local, national and political advertisers and retransmission fees received from cable operators and satellite carriers.
Our radio segment consists of 34 radio stations in eight markets. We operate 28 FM stations and six AM stations. Our radio stations earn revenue primarily from the sale of advertising to local advertisers.

Our digital segment includes the digital operations of our local television and radio businesses. It also includes the operations of national digital businesses such as Newsy, an over-the-top ("OTT") video news service, Cracked, the multi-platform humor and satire brand, and Midroll, a podcast industry leader. Our digital operations earn revenue primarily through the sale of advertising and marketing services.
Syndication and other primarily includes the syndication of news features and comics and other features for the newspaper industry.
We allocate a portion of certain corporate costs and expenses, including information technology, certain employee benefits and shared services, to our business segments. The allocations are generally amounts agreed upon by management, which may differ from an arms-length amount. Corporate assets are primarily cash and cash equivalents, restricted cash, property and equipment primarily used for corporate purposes, and deferred income taxes.

Our chief operating decision maker evaluates the operating performance of our business segments and makes decisions about the allocation of resources to our business segments using a measure called segment profit. Segment profit excludes interest, defined benefit pension plan expense, income taxes, depreciation and amortization, impairment charges, divested operating units, restructuring activities, investment results and certain other items that are included in net income (loss) determined in accordance with accounting principles generally accepted in the United States of America.

Information regarding our business segments is as follows:
 
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
(in thousands)
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
 
Segment operating revenues:
 
 
 
 
 
 
 
 
Television
 
$
191,745


$
167,394

 
$
371,649

 
$
281,612

Radio
 
18,183


19,413

 
32,786

 
19,413

Digital
 
15,207

 
8,602

 
27,533

 
14,837

Syndication and other
 
2,682


2,725

 
5,347

 
5,295

Total operating revenues
 
$
227,817

 
$
198,134

 
$
437,315

 
$
321,157

Segment profit (loss):
 
 
 
 
 
 
 
 
Television
 
$
53,298

 
$
44,596

 
$
94,985

 
$
66,650

Radio
 
3,903

 
4,908

 
6,046

 
4,908

Digital
 
(4,715
)
 
(4,917
)
 
(7,848
)
 
(9,571
)
Syndication and other
 
(1,045
)
 
(1,062
)
 
(152
)
 
(657
)
Shared services and corporate
 
(9,874
)
 
(11,507
)
 
(24,166
)
 
(25,043
)
Defined benefit pension plan expense
 
(3,449
)
 
(4,120
)
 
(6,899
)
 
(6,806
)
Acquisition and related integration costs
 
—

 
(29,973
)
 
(578
)
 
(32,747
)
Depreciation and amortization of intangibles
 
(14,786
)
 
(13,366
)
 
(29,197
)
 
(21,661
)
Losses, net on disposal of property and equipment
 
(22
)
 
(215
)
 
(18
)
 
(379
)
Interest expense
 
(4,432
)
 
(4,225
)
 
(9,011
)
 
(6,277
)
Miscellaneous, net
 
(458
)
 
387

 
(649
)
 
(1,049
)
Income (loss) from continuing operations before income taxes
 
$
18,420

 
$
(19,494
)
 
$
22,513

 
$
(32,632
)
Depreciation:
 
 
 
 
 
 
 
 
Television
 
$
7,932

 
$
7,238

 
$
15,397

 
$
12,624

Radio
 
543

 
549

 
1,080

 
549

Digital
 
54

 
132

 
108

 
262

Syndication and other
 
65

 
66

 
129

 
129

Shared services and corporate
 
334

 
619

 
870

 
1,227

Total depreciation
 
$
8,928

 
$
8,604

 
$
17,584

 
$
14,791

Amortization of intangibles:
 
 
 
 
 
 
 
 
Television
 
$
4,240

 
$
4,262

 
$
8,479

 
$
6,150

Radio
 
265

 
280

 
530

 
280

Digital
 
1,014

 
220

 
1,927

 
440

Shared services and corporate
 
339

 
—

 
677

 
—

Total amortization of intangibles
 
$
5,858

 
$
4,762

 
$
11,613

 
$
6,870

Additions to property and equipment:
 
 
 
 
 
 
 
 
Television
 
$
6,519

 
$
5,802

 
$
9,630

 
$
7,743

Radio
 
83

 
16

 
316

 
16

Digital
 
13

 
—

 
17

 
—

Syndication and other
 
26

 
15

 
41

 
69

Shared services and corporate
 
266

 
633

 
324

 
943

Total additions to property and equipment
 
$
6,907

 
$
6,466

 
$
10,328

 
$
8,771



No single customer provides more than 10% of our revenue.