þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ohio (State or other jurisdiction of incorporation or organization) | 31-1223339 (IRS Employer Identification Number) | |
312 Walnut Street Cincinnati, Ohio (Address of principal executive offices) | 45202 (Zip Code) |
Title of each class Securities registered pursuant to Section 12(b) of the Act: | Name of each exchange on which registered NASDAQ Global Select Market | |
Class A Common shares, $.01 par value | ||
Securities registered pursuant to Section 12(g) of the Act: | ||
Not applicable |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | Emerging growth company o |
Item No. | Page | |
Item 1. | Business |
• | The List, an Emmy award winning infotainment show, is available in 37 markets reaching viewers in approximately 28 percent of the country. |
• | The Now is a news show designed to take the audience into a deeper dive of the day's events and is available in more than 15 of our markets. |
• | RightThisMinute is a daily news and entertainment program featuring viral videos. RightThisMinute reaches nearly 97 percent of the nation's television households. |
Station | Market | Network Affiliation/ DTV Channel | Affiliation Agreement Expires in | FCC License Expires in | Market Rank (1) | Stations in Market (2) | Station Rank in Market (3) | Percentage of U.S. Television Households in Mkt (4) | Average Audience Share (5) | |||||||||
WFTS-TV | Tampa, Ch. 28 | ABC/29 | 2022 | 2021 | 11 | 13 | 4 | 1.7% | 4 | |||||||||
KNXV-TV | Phoenix, Ch. 15 | ABC/15 | 2022 | 2022 | 12 | 14 | 3 | 1.7% | 5 | |||||||||
WMYD-TV | Detroit, Ch. 20 | MY/21 | 2020 | 2021 | 14 | 10 | 6 | 1.6% | 2 | |||||||||
WXYZ-TV | Detroit, Ch. 7 | ABC/41 | 2022 | 2021 | 14 | 10 | 2 | 1.6% | 7 | |||||||||
KMGH-TV | Denver, Ch. 7 | ABC/7 | 2022 | 2022 | 17 | 14 | 3 | 1.4% | 4 | |||||||||
WEWS-TV | Cleveland, Ch. 5 | ABC/15 | 2022 | 2021 | 19 | 11 | 1 | 1.3% | 8 | |||||||||
WMAR-TV | Baltimore, Ch. 2 | ABC/38 | 2022 | 2020 | 26 | 11 | 4 | 1.0% | 3 | |||||||||
WTVF-TV | Nashville, Ch. 5 | CBS/25 | 2021 | 2021 | 27 | 10 | 1 | 0.9% | 13 | |||||||||
WRTV-TV | Indianapolis, Ch. 6 | ABC/25 | 2022 | 2021 | 28 | 10 | 4 | 0.9% | 5 | |||||||||
KGTV-TV | San Diego, Ch. 10 | ABC/10 | 2022 | 2022 | 29 | 12 | 3 | 0.9% | 5 | |||||||||
KMCI-TV | Kansas City, Ch. 38 | Ind./41 | N/A | 2022 | 32 | 12 | 7 | 0.8% | 1 | |||||||||
KSHB-TV | Kansas City, Ch. 41 | NBC/42 | 2021 | 2022 | 32 | 12 | 4 | 0.8% | 6 | |||||||||
WCPO-TV | Cincinnati, Ch. 9 | ABC/22 | 2022 | 2021 | 35 | 9 | 3 | 0.8% | 7 | |||||||||
WTMJ-TV | Milwaukee, Ch. 4 | NBC/28 | 2021 | 2021 | 36 | 14 | 4 | 0.8% | 6 | |||||||||
WPTV-TV | W. Palm Beach, Ch. 5 | NBC/12 | 2021 | 2021 | 37 | 10 | 1 | 0.8% | 8 | |||||||||
KTNV-TV (6) | Las Vegas, Ch. 13 | ABC/13 | 2022 | 2022 | 39 | 14 | 3 | 0.7% | 5 | |||||||||
WKBW-TV | Buffalo, Ch. 7 | ABC/38 | 2022 | 2023 | 52 | 9 | 3 | 0.5% | 6 | |||||||||
WFTX-TV | Fort Myers/Naples, Ch. 4 | FOX/35 | 2019 | 2021 | 55 | 14 | 5 | 0.5% | 3 | |||||||||
KJRH-TV | Tulsa, Ch. 2 | NBC/8 | 2021 | 2022 | 61 | 12 | 4 | 0.5% | 5 | |||||||||
WGBA-TV | Green Bay/Appleton, Ch. 26 | NBC/41 | 2021 | 2021 | 67 | 9 | 4 | 0.4% | 5 | |||||||||
WACY-TV (6) | Green Bay/Appleton, Ch. 32 | MY/27 | 2020 | 2021 | 67 | 9 | 8 | 0.4% | 1 | |||||||||
KMTV-TV | Omaha, Ch. 3 | CBS/45 | 2020 | 2022 | 69 | 9 | 3 | 0.4% | 9 | |||||||||
KWBA-TV | Tucson, Ch. 58 | CW/44 | 2021 | 2022 | 73 | 13 | 9 | 0.4% | 1 | |||||||||
KGUN-TV (6) | Tucson, Ch. 9 | ABC/9 | 2022 | 2022 | 73 | 13 | 3 | 0.4% | 5 | |||||||||
KIVI-TV (6) | Boise, Ch. 6 | ABC/24 | 2022 | 2022 | 100 | 11 | 3 | 0.2% | 8 | |||||||||
WSYM-TV | Lansing, Ch. 47 | FOX/38 | 2019 | 2021 | 110 | 7 | 4 | 0.2% | 4 | |||||||||
KERO-TV | Bakersfield, Ch. 23 | ABC/10 | 2022 | 2022 | 122 | 11 | 3 | 0.2% | 6 |
(1) | Market rank represents the relative size of the television market in the United States. |
(2) | Stations in Market represents stations within the Designated Market Area per the Nielsen survey excluding public broadcasting stations, satellite stations, and low-power stations. |
(3) | Station Rank in Market is based on Average Share as described in (5). |
(4) | Percentage of U.S. Television Households in Market represents the number of U.S. television households in Designated Market Area as a percentage of total U.S. television households. |
(5) | Average Audience Share represents the number of television households tuned to a specific station from 6 a.m. to 2 a.m. Monday-Sunday, as a percentage of total viewing households in the Designated Market Area. |
(6) | Affiliation agreements expired and were extended or are being negotiated at this writing. |
Item 1A. | Risk Factors |
• | The advertising and marketing spending by customers can be subject to seasonal and cyclical variations and is likely to be adversely affected during economic downturns. |
• | Programming and content offered by our businesses may not achieve desired ratings or may decline in popularity with its audience. |
• | Audiences continue to fragment in recent years as the broad distribution of cable and satellite television and the growth in over-the-top streaming services have greatly increased the options available to the public for accessing audio and video programming, including live sports. Continued fragmentation of audiences, and the growth of internet programming and streaming services, could adversely impact advertising rates, which will reflect the size and demographics of the audience reached by advertisers through our media businesses. |
• | Television advertising revenues in even-numbered years benefit from political advertising, which is affected by campaign finance laws, as well as the competitiveness of specific political races in the markets where our television stations operate. |
• | Continued consolidation and contraction of local advertisers in our local markets could adversely impact our operating results, given that we expect the majority of our advertising to be sold to local businesses in our markets. |
• | Television stations have significant exposure to advertising in the automotive, retail and services industries. Advertising within these industries may decline and we may not be able to secure replacement advertisers. |
• | Several national advertising agencies are employing an automated process known as “programmatic buying” to gain efficiencies and reduce costs related to buying advertising. Growth in advertising revenues will rely in part on the ability to maintain and expand relationships with existing and future advertisers. The implementation of a programmatic model or other similar solution, where automation replaces existing pricing and allocation methods, could turn advertising inventory into a price-driven commodity. These automated solutions could reduce the value of relationships with advertisers as well as result in downward pricing pressure. |
• | Pursuant to FCC rules, local television stations must elect every three years to either (1) require cable operators and/or direct broadcast satellite carriers to carry the stations’ over-the-air signals or (2) enter into retransmission consent negotiations for carriage. At present, all of our stations have retransmission consent agreements with cable operators and satellite carriers. If our retransmission consent agreements are terminated or not renewed, or if our broadcast signals are distributed on less-favorable terms, our ability to compete effectively may be adversely affected. |
• | If we cannot renew our FCC broadcast licenses, our broadcast operations will be impaired. Our business depends upon maintaining our broadcast licenses from the FCC, which has the authority to revoke licenses, not renew them, or renew them only with significant qualifications, including renewals for less than a full term. We cannot assure that future renewal applications will be approved, or that the renewals will not include conditions or qualifications that could adversely affect operations. If the FCC fails to renew any of these licenses, it could prevent us from operating the affected stations. If the FCC renews a license with substantial conditions or modifications (including renewing the license for a term of fewer than eight years), it could have a material adverse effect on the affected station’s revenue potential. |
• | As discussed under Federal Regulation of Broadcasting, the FCC in 2017 completed an auction in which some television licensees voluntarily auctioned away their spectrum rights and 84 MHz of broadcast spectrum was reallocated to other uses. As a result, many television stations, including 17 Company-owned full-power stations, must change their operating frequencies, and the FCC is setting tight deadlines for the completion of these facility changes in order to make the reallocated spectrum promptly available to the wireless service buyers. Depending on factors such as the availability of specialized technical assistance and custom-made equipment, weather issues, and, for stations near international borders, the cooperation of foreign governments, some stations could confront substantial costs and difficulty in completing these relocations within the allotted time, adversely affecting these stations’ over-the-air service. Scripps has timely applied for and received construction permits to complete the required changes for its stations and is expeditiously pursuing the steps necessary to complete this process, but we cannot predict whether unforeseen circumstances might delay implementation and have a material adverse effect on one or more stations' revenue potential. |
• | As also discussed under Federal Regulation of Broadcasting, the FCC has adopted broadcasters’ proposal to permit the voluntary use of a new digital television transmission standard, ATSC 3.0, that is incompatible with the existing standard. Much uncertainty exists concerning the costs, benefits, and public acceptance of the services expected to become possible under this new standard, and television stations could be adversely affected by moving either too quickly or too slowly towards its adoption. |
• | The FCC and other government agencies are continually considering proposals intended to promote consumer interests. New government regulations affecting the television industry could raise programming costs, restrict broadcasters’ operating flexibility, reduce advertising revenues, raise the costs of delivering broadcast signals, or otherwise affect operating results. We cannot predict the nature or scope of future government regulation or its impact on our operations. |
• | general market and economic conditions and market trends, including in the television broadcast industry, the national media marketplace and the financial markets generally; |
• | the political, economic and social situation in the United States; |
• | variations in quarterly operating results; |
• | inability to meet revenue forecasts; |
• | announcements by us or competitors of significant acquisitions, strategic partnerships, joint ventures, capital commitments or other business developments; |
• | adoption of new accounting standards affecting the media industry; |
• | operations of competitors and the performance of competitors’ common stock; |
• | litigation and governmental action involving or affecting us or our subsidiaries; |
• | changes in financial estimates and recommendations by securities analysts; |
• | recruitment of key personnel; |
• | purchases or sales of blocks of our Class A Common shares; |
• | operating and stock performance of companies that investors may consider to be comparable to us; and |
• | changes in the regulatory environment, including rulemaking or other actions by the FCC. |
• | require us to dedicate a substantial portion of any cash flow from operations to the payment of interest and principal due under our debt, which would reduce funds available for other business purposes, including capital expenditures and acquisitions; |
• | place us at a competitive disadvantage compared to some of our competitors that may have less debt and better access to capital resources; |
• | limit our ability to obtain additional financing required to fund acquisitions, working capital and capital expenditures and for other general corporate purposes; and |
• | make it more difficult for us to satisfy our financial obligations, including those relating to the Senior Notes. |
• | incur additional debt; |
• | declare or pay dividends, redeem stock or make other distributions to stockholders; |
• | make investments or acquisitions; |
• | create liens or use assets as security in other transactions; |
• | issue guarantees; |
• | merge or consolidate, or sell, transfer, lease or dispose of substantially all of our assets; |
• | engage in transactions with affiliates; and |
• | purchase, sell or transfer certain assets. |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
Name | Age | Position | ||
Adam P. Symson | 44 | President and Chief Executive Officer (since August 2017); Chief Operating Officer (November 2016 to August 2017); Senior Vice President, Digital (February 2013 to November 2016); Chief Digital Officer (2011 to February 2013); Vice President Interactive Media, Television (2007 to 2011) | ||
Lisa A. Knutson | 53 | Executive Vice President, Chief Financial Officer (since October 2017); Executive Vice President, Chief Strategy Officer (August 2017 to October 2017); Senior Vice President, Chief Administrative Officer (2011 to 2017); Senior Vice President, Human Resources (2008 to 2011) | ||
William Appleton | 70 | Executive Vice President, General Counsel (since August 2017); Senior Vice President, General Counsel (July 2008 to August 2017); Managing Partner Cincinnati office, Baker & Hostetler, LLP (2003 to 2008) | ||
Brian G. Lawlor | 52 | President, Local Media (since August 2017); Senior Vice President, Broadcast (January 2009 to August 2017); Vice President/General Manager of WPTV (2004 to 2008) | ||
Douglas F. Lyons | 62 | Senior Vice President, Controller and Treasurer (since December 2017), Vice President, Controller and Treasurer (May 2015 to December 2017), Vice President, Controller (2008 to May 2015), Vice President, Finance and Administration (2006 to 2008) | ||
Laura M. Tomlin | 43 | Senior Vice President, National Media (since August 2017); Vice President, Digital Operations (2014 to 2017) |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Period | Total number of shares purchased | Average price paid per share | Total market value of shares purchased | Maximum value that may yet be purchased under the plans or programs | |||||||||||
10/1/2018 — 10/31/2018 | 45,813 | $ | 16.56 | $ | 758,647 | $ | 51,577,433 | ||||||||
11/1/2018 — 11/30/2018 | 39,000 | 17.27 | 673,405 | $ | 50,904,028 | ||||||||||
12/1/2018 — 12/31/2018 | 37,700 | 16.48 | 621,371 | $ | 50,282,657 | ||||||||||
Total | 122,513 | $ | 16.76 | $ | 2,053,423 |
12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017 | 12/31/2018 | |||||||||||||||||||
The E.W. Scripps Company | $ | 100.00 | $ | 102.90 | $ | 99.12 | $ | 100.84 | $ | 81.54 | $ | 83.17 | ||||||||||||
S&P 500 Index | 100.00 | 113.69 | 115.26 | 129.05 | 157.22 | 150.33 | ||||||||||||||||||
Current Peer Group Index | 100.00 | 92.03 | 86.88 | 83.17 | 103.21 | 93.55 | ||||||||||||||||||
Previous Peer Group Index | 100.00 | 91.69 | 86.39 | 83.60 | 104.06 | 92.71 |
Item 6. | Selected Financial Data |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
Item 8. | Financial Statements and Supplementary Data |
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
Item 10. | Directors, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accounting Fees and Services |
Item 15. | Exhibits and Financial Statement Schedules |
(a) | The consolidated financial statements of The E.W. Scripps Company are filed as part of this Form 10-K. See Index to Consolidated Financial Statement Information at page F-1. |
(b) | There are no supplemental schedules that are required to be filed as part of this Form 10-K. |
(c) | An exhibit index required by this item appears below. |
Item 16. | Form 10-K Summary |
Exhibit Number | Exhibit Description | Form | File Number | Exhibit | Report Date | |||||
2.01 | S-4 | 333-200388 | 2.1 | 11/20/2014 | ||||||
2.02 | 8-K | 001-10701 | 2.1 | 10/27/2018 | ||||||
3.01 | 8-K | 000-16914 | 99.03 | 2/17/2009 | ||||||
3.02 | 8-K | 000-16914 | 10.02 | 5/10/2007 | ||||||
3.03 | 8-K | 000-16914 | 3.1 | 3/11/2015 | ||||||
10.01 | DEF 14A | 000-16914 | Appendix | 5/4/2015 | ||||||
10.02 | 10-Q | 000-16914 | 10.02 | 9/30/2017 | ||||||
10.03 | DEF 14A | 000-16914 | Appendix | 6/13/2008 | ||||||
10.04 | 8-K | 000-16914 | 10.03B | 2/9/2005 | ||||||
10.05 | 10-K | 000-16914 | 10.07 | 12/31/2015 | ||||||
10.06 | 8-K | 000-16914 | 10.1 | 2/23/2015 | ||||||
10.07 | S-8 | 333-151963 | 99 | 6/26/2008 | ||||||
10.08 | SC 13D | 005-43473 | 2 | 6/5/2015 | ||||||
10.09 | 10-Q | 000-16914 | 10.01 | 3/31/2017 | ||||||
10.10 | 8-K | 000-16914 | 10.61 | 5/8/2008 | ||||||
10.11 | 10-Q | 000-16914 | 10.10 | 9/30/2017 | ||||||
10.12 | 8-K | 000-16914 | 10.66 | 2/15/2011 | ||||||
10.13 | 8-K | 000-16914 | 10.1 | 11/4/2014 | ||||||
10.14 | 8-K | 000-16914 | 10.1 | 7/10/2017 | ||||||
10.15 | 10-K | 000-16914 | 10.13 | 12/31/2016 | ||||||
10.16 | 10-Q | 000-16914 | 10.14 | 9/30/2017 | ||||||
10.17 | 10-Q | 000-16914 | 10.15 | 9/30/2017 | ||||||
10.18 | 10-Q | 000-16914 | 10.16 | 9/30/2017 | ||||||
10.19 | 8-K | 000-16914 | 10.1 | 4/20/2017 | ||||||
10.20 | 8-K | 000-16914 | 10.1 | 4/28/2017 | ||||||
10.21 | 8-K | 000-16914 | 10.2 | 4/28/2017 | ||||||
10.22 | 8-K | 000-16914 | 99.1 | 10/2/2017 | ||||||
10.23 | 10-Q | 000-16914 | 10.10 | 3/31/2018 | ||||||
14 | 10-K | 000-16914 | 14 | 12/31/2004 | ||||||
21 | * | |||||||||
23 | * | |||||||||
31(a) | * | |||||||||
31(b) | * | |||||||||
32(a) | * | |||||||||
32(b) | * |
Exhibit Number | Exhibit Description | Form | File Number | Exhibit | Report Date | |||||
101.INS | XBRL Instance Document (furnished herewith) | * | ||||||||
101.SCH | XBRL Taxonomy Extension Schema Document (furnished herewith) | * | ||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document (furnished herewith) | * | ||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document (furnished herewith) | * | ||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document (furnished herewith) | * | ||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document (furnished herewith) | * |
THE E. W. SCRIPPS COMPANY | ||
Dated: March 1, 2019 | By: | /s/ Adam P. Symson |
Adam P. Symson | ||
President and Chief Executive Officer |
Signature | Title | |
/s/ Adam P. Symson | President and Chief Executive Officer | |
Adam P. Symson | (Principal Executive Officer) | |
/s/ Lisa A. Knutson | Executive Vice President and Chief Financial Officer | |
Lisa A. Knutson | ||
/s/ Douglas F. Lyons | Senior Vice President, Controller and Treasurer | |
Douglas F. Lyons | (Principal Accounting Officer) | |
/s/ Charles Barmonde | Director | |
Charles Barmonde | ||
/s/ Richard A. Boehne | Chairman of the Board of Directors | |
Richard A. Boehne | ||
/s/ Kelly P. Conlin | Director | |
Kelly P. Conlin | ||
/s/ John W. Hayden | Director | |
John W. Hayden | ||
/s/ Anne M. La Dow | Director | |
Anne M. La Dow | ||
/s/ Roger L. Ogden | Director | |
Roger L. Ogden | ||
/s/ R. Michael Scagliotti | Director | |
R. Michael Scagliotti | ||
/s/ Lauren R. Fine | Director | |
Lauren R. Fine | ||
/s/ Kim Williams | Director | |
Kim Williams |
Item No. | Page | ||
For the years ended December 31, | ||||||||||||||||||||
(in millions, except per share data) | 2018 (1) | 2017 (1) | 2016 (1) | 2015 (1) | 2014 (1) | |||||||||||||||
Summary of Operations (2) | ||||||||||||||||||||
Total operating revenues (3) | $ | 1,208 | $ | 877 | $ | 874 | $ | 654 | $ | 499 | ||||||||||
Income (loss) from continuing operations before income taxes | 74 | (32 | ) | 93 | (112 | ) | 9 | |||||||||||||
Income (loss) from continuing operations, net of tax | 56 | (12 | ) | 60 | (74 | ) | 9 | |||||||||||||
Depreciation and amortization of intangible assets | (64 | ) | (56 | ) | (55 | ) | (50 | ) | (32 | ) | ||||||||||
Per Share Data | ||||||||||||||||||||
Income (loss) from continuing operations — diluted | $ | 0.68 | $ | (0.13 | ) | $ | 0.71 | $ | (0.95 | ) | $ | 0.16 | ||||||||
Cash dividends | 0.20 | — | — | 1.03 | — | |||||||||||||||
Market Value of Common Shares at December 31 | ||||||||||||||||||||
Per share | $ | 15.73 | $ | 15.63 | $ | 19.33 | $ | 19.00 | $ | 22.35 | ||||||||||
Total | 1,269 | 1,276 | 1,585 | 1,591 | 1,274 | |||||||||||||||
Balance Sheet Data | ||||||||||||||||||||
Total assets | $ | 2,130 | $ | 2,130 | $ | 1,736 | $ | 1,706 | $ | 1,031 | ||||||||||
Long-term debt (including current portion) | 696 | 702 | 396 | 399 | 196 | |||||||||||||||
Equity | 926 | 937 | 946 | 901 | 520 |
(1) | 2018 — On November 30, 2018, we acquired Triton Digital Canada, Inc. Operating results are included for periods after the acquisition. | |
2017 — On October 2, 2017, we acquired the Katz networks. Operating results are included for periods after the acquisition. | ||
2016 — On April 12, 2016, we acquired Cracked. On June 6, 2016, we acquired Stitcher. Operating results for each are included for periods after the acquisitions. | ||
2015 — On April 1, 2015, we acquired the broadcast group owned by Journal Communications, Inc. On July 22, 2015, we acquired Midroll Media. Operating results for each are included for periods after the acquisitions. | ||
2014 — On January 1, 2014, we acquired Media Convergence Group, Inc., which operates as Newsy. On June 16, 2014, we acquired two television stations owned by Granite Broadcasting Corporation. Operating results for each are included for periods after the acquisitions. | ||
(2) | The five-year summary of operations excludes the operating results of the following entities and the gains (losses) on their divestiture as they are accounted for as discontinued operations: | |
- During the fourth quarter of 2018, we completed the sale of our radio station group. | ||
- On April 1, 2015, we completed the spin-off of our newspaper business. | ||
(3) | Only the years ended December 31, 2018, 2017 and 2016 have been retroactively-adjusted for the adoption of the new revenue standard on January 1, 2018. |
For the years ended December 31, | ||||||||||||||||||
(in thousands) | 2018 | Change | 2017 | Change | 2016 | |||||||||||||
Operating revenues | $ | 1,208,425 | 37.8 | % | $ | 876,972 | 0.3 | % | $ | 874,451 | ||||||||
Employee compensation and benefits | (394,029 | ) | 7.2 | % | (367,735 | ) | 7.0 | % | (343,570 | ) | ||||||||
Programming | (350,753 | ) | 53.4 | % | (228,605 | ) | 32.4 | % | (172,617 | ) | ||||||||
Impairment of programming assets | (8,920 | ) | — | — | ||||||||||||||
Other expenses | (246,487 | ) | 32.6 | % | (185,869 | ) | 6.9 | % | (173,797 | ) | ||||||||
Acquisition and related integration costs | (4,124 | ) | — | (578 | ) | |||||||||||||
Restructuring costs | (8,911 | ) | (4,422 | ) | — | |||||||||||||
Depreciation and amortization of intangible assets | (63,987 | ) | (56,343 | ) | (55,204 | ) | ||||||||||||
Impairment of goodwill and intangible assets | — | (35,732 | ) | — | ||||||||||||||
Gains (losses), net on disposal of property and equipment | (1,255 | ) | (169 | ) | (480 | ) | ||||||||||||
Operating income (loss) | 129,959 | (1,903 | ) | 128,205 | ||||||||||||||
Interest expense | (36,184 | ) | (26,697 | ) | (18,039 | ) | ||||||||||||
Defined benefit pension plan expense | (19,752 | ) | (14,112 | ) | (14,332 | ) | ||||||||||||
Miscellaneous, net | 152 | 10,636 | (2,646 | ) | ||||||||||||||
Income (loss) from continuing operations before income taxes | 74,175 | (32,076 | ) | 93,188 | ||||||||||||||
(Provision) benefit for income taxes | (18,098 | ) | 20,054 | (33,266 | ) | |||||||||||||
Income (loss) from continuing operations, net of tax | 56,077 | (12,022 | ) | 59,922 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | (36,328 | ) | (2,595 | ) | 7,313 | |||||||||||||
Net income (loss) | 19,749 | (14,617 | ) | 67,235 | ||||||||||||||
Loss attributable to noncontrolling interest | (632 | ) | (1,511 | ) | — | |||||||||||||
Net income (loss) attributable to the shareholders of The E.W. Scripps Company | $ | 20,381 | $ | (13,106 | ) | $ | 67,235 |
For the years ended December 31, | ||||||||||||||||||
(in thousands) | 2018 | Change | 2017 | Change | 2016 | |||||||||||||
Segment operating revenues: | ||||||||||||||||||
Local Media | $ | 917,480 | 17.9 | % | $ | 778,376 | (6.8 | )% | $ | 835,290 | ||||||||
National Media | 286,170 | 93,141 | 34,424 | |||||||||||||||
Other | 4,775 | (12.5 | )% | 5,455 | 15.2 | % | 4,737 | |||||||||||
Total operating revenues | $ | 1,208,425 | 37.8 | % | $ | 876,972 | 0.3 | % | $ | 874,451 | ||||||||
Segment profit (loss): | ||||||||||||||||||
Local Media | $ | 251,119 | 60.1 | % | $ | 156,890 | (35.5 | )% | $ | 243,298 | ||||||||
National Media | 13,920 | (9,260 | ) | (8.8 | )% | (10,156 | ) | |||||||||||
Other | (3,680 | ) | 55.9 | % | (2,361 | ) | (6.0 | )% | (2,513 | ) | ||||||||
Shared services and corporate | (53,123 | ) | 5.2 | % | (50,506 | ) | 9.4 | % | (46,162 | ) | ||||||||
Acquisition and related integration costs | (4,124 | ) | — | (578 | ) | |||||||||||||
Restructuring costs | (8,911 | ) | (4,422 | ) | — | |||||||||||||
Depreciation and amortization of intangible assets | (63,987 | ) | (56,343 | ) | (55,204 | ) | ||||||||||||
Impairment of goodwill and intangible assets | — | (35,732 | ) | — | ||||||||||||||
Gains (losses), net on disposal of property and equipment | (1,255 | ) | (169 | ) | (480 | ) | ||||||||||||
Interest expense | (36,184 | ) | (26,697 | ) | (18,039 | ) | ||||||||||||
Defined benefit pension plan expense | (19,752 | ) | (14,112 | ) | (14,332 | ) | ||||||||||||
Miscellaneous, net | 152 | 10,636 | (2,646 | ) | ||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 74,175 | $ | (32,076 | ) | $ | 93,188 |
For the years ended December 31, | ||||||||||||||||||
(in thousands) | 2018 | Change | 2017 | Change | 2016 | |||||||||||||
Segment operating revenues: | ||||||||||||||||||
Core advertising | $ | 465,275 | (5.6 | )% | $ | 492,633 | (1.3 | )% | $ | 499,227 | ||||||||
Political | 139,600 | 8,651 | 100,761 | |||||||||||||||
Retransmission | 301,411 | 16.2 | % | 259,499 | 17.6 | % | 220,723 | |||||||||||
Other | 11,194 | (36.4 | )% | 17,593 | 20.7 | % | 14,579 | |||||||||||
Total operating revenues | 917,480 | 17.9 | % | 778,376 | (6.8 | )% | 835,290 | |||||||||||
Segment costs and expenses: | ||||||||||||||||||
Employee compensation and benefits | 292,079 | 1.5 | % | 287,758 | 2.1 | % | 281,956 | |||||||||||
Programming | 219,690 | 18.0 | % | 186,116 | 14.9 | % | 161,957 | |||||||||||
Impairment of programming assets | 8,920 | — | — | |||||||||||||||
Other expenses | 145,672 | (1.3 | )% | 147,612 | (0.3 | )% | 148,079 | |||||||||||
Total costs and expenses | 666,361 | 7.2 | % | 621,486 | 5.0 | % | 591,992 | |||||||||||
Segment profit | $ | 251,119 | 60.1 | % | $ | 156,890 | (35.5 | )% | $ | 243,298 |
For the years ended December 31, | ||||||||||||||||||
(in thousands) | 2018 | Change | 2017 | Change | 2016 | |||||||||||||
Segment operating revenues: | ||||||||||||||||||
Katz | $ | 185,852 | $ | 40,975 | $ | — | ||||||||||||
Stitcher | 51,063 | 63.7 | % | 31,199 | 51.5 | % | 20,588 | |||||||||||
Newsy | 24,588 | 10,089 | 4,806 | |||||||||||||||
Triton | 3,292 | — | — | |||||||||||||||
Other | 21,375 | 96.5 | % | 10,878 | 20.5 | % | 9,030 | |||||||||||
Total operating revenues | 286,170 | 93,141 | 34,424 | |||||||||||||||
Segment costs and expenses: | ||||||||||||||||||
Employee compensation and benefits | 58,033 | 86.5 | % | 31,121 | 49.9 | % | 20,767 | |||||||||||
Programming | 131,063 | 42,489 | 10,660 | |||||||||||||||
Other expenses | 83,154 | 28,791 | 13,153 | |||||||||||||||
Total costs and expenses | 272,250 | 102,401 | 44,580 | |||||||||||||||
Segment profit (loss) | $ | 13,920 | $ | (9,260 | ) | $ | (10,156 | ) |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net income (loss) | $ | 19,749 | $ | (14,617 | ) | $ | 67,235 | |||||
Income (loss) from discontinued operations, net of tax | (36,328 | ) | (2,595 | ) | 7,313 | |||||||
Income (loss) from continuing operations, net of tax | 56,077 | (12,022 | ) | 59,922 | ||||||||
Adjustments to reconcile net income (loss) from continuing operations to net cash flows from operating activities: | ||||||||||||
Depreciation and amortization | 63,987 | 56,343 | 55,204 | |||||||||
Impairment of goodwill and intangible assets | — | 35,732 | — | |||||||||
Impairment of programming assets | 8,920 | — | — | |||||||||
Loss (gain) on disposition of investments | 251 | (6,106 | ) | — | ||||||||
(Gains) losses on sale of property and equipment | 1,255 | 169 | 480 | |||||||||
Programming assets and liabilities | (12,788 | ) | (9,172 | ) | (2,327 | ) | ||||||
Deferred income taxes | 19,354 | (16,084 | ) | 38,794 | ||||||||
Stock and deferred compensation plans | 10,741 | 15,872 | 10,857 | |||||||||
Pension expense, net of contributions | (4,052 | ) | (6,738 | ) | 4,936 | |||||||
Other changes in certain working capital accounts, net | (16,159 | ) | (22,190 | ) | (33,646 | ) | ||||||
Miscellaneous, net | 2,645 | (5,619 | ) | 1,677 | ||||||||
Net cash provided by operating activities from continuing operations | 130,231 | 30,185 | 135,897 | |||||||||
Net cash provided by operating activities from discontinued operations | 10,680 | 10,667 | 10,596 | |||||||||
Net operating activities | $ | 140,911 | $ | 40,852 | $ | 146,493 |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||
Acquisitions, net of cash acquired | $ | (149,469 | ) | $ | (280,940 | ) | $ | (43,500 | ) | |||
Additions to property and equipment | (53,253 | ) | (17,932 | ) | (25,911 | ) | ||||||
Acquisition of intangible assets | (7,229 | ) | (9,745 | ) | — | |||||||
Purchase of investments | (558 | ) | (836 | ) | (2,128 | ) | ||||||
Proceeds from FCC repack | 1,530 | — | — | |||||||||
Miscellaneous, net | 2,307 | 12,886 | 147 | |||||||||
Net cash used in investing activities from continuing operations | (206,672 | ) | (296,567 | ) | (71,392 | ) | ||||||
Net cash provided by (used in) investing activities from discontinued operations | 79,188 | (2,500 | ) | (2,036 | ) | |||||||
Net investing activities | $ | (127,484 | ) | $ | (299,067 | ) | $ | (73,428 | ) |
• | In 2018, we acquired Triton for $150 million, net of cash acquired. |
• | In 2018, capital expenditures increased $35 million. A significant portion of the increase was attributed to $17.9 million of capital expenditures incurred in 2018 related to the FCC repacking process. Additionally, National Media's capital expenditures increased $14.4 million year-over-year mainly as a result of one-time expenses incurred related to the expansion and renovation of office and studio space in our leased facilities that was needed to accommodate current and future growth of our national brands. |
• | In 2018 and 2017, we recognized other intangible assets of $5.8 million and $9.7 million, respectively, related to the acquisition of cable and satellite carriage rights for the launch of our Newsy cable network. Additionally, in 2018, we acquired the CourtTV trademark for $1.5 million. |
• | In 2017, we acquired Katz for $281 million, net of cash acquired. |
• | In 2016, we acquired Cracked for $39 million and Stitcher for $4.5 million. |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from issuance of long-term debt | $ | — | $ | 700,000 | $ | — | ||||||
Payments on long-term debt | (5,656 | ) | (393,927 | ) | (6,635 | ) | ||||||
Deferred financing costs | — | (9,671 | ) | — | ||||||||
Dividends paid | (16,395 | ) | — | — | ||||||||
Repurchase of Class A Common shares | (32,323 | ) | (17,885 | ) | (44,401 | ) | ||||||
Proceeds from exercise of stock options | 1,857 | 1,461 | 4,641 | |||||||||
Tax payments related to shares withheld for vested stock and RSUs | (3,796 | ) | (4,576 | ) | (2,681 | ) | ||||||
Miscellaneous, net | 1,316 | (2,840 | ) | (4,258 | ) | |||||||
Net cash provided by (used in) financing activities from continuing operations | $ | (54,997 | ) | $ | 272,562 | $ | (53,334 | ) |
Less than | Years | Years | Over | |||||||||||||||||
(in thousands) | 1 Year | 2 & 3 | 4 & 5 | 5 Years | Total | |||||||||||||||
Long-term debt: | ||||||||||||||||||||
Principal amounts | $ | 3,000 | $ | 6,000 | $ | 6,000 | $ | 681,250 | $ | 696,250 | ||||||||||
Interest on debt | 33,292 | 66,194 | 65,673 | 39,856 | 205,015 | |||||||||||||||
Programming: | ||||||||||||||||||||
Program licenses, network affiliations and other programming commitments | 296,650 | 658,632 | 142,261 | 425 | 1,097,968 | |||||||||||||||
Employee compensation and benefits: | ||||||||||||||||||||
Deferred compensation and other post-employment benefits | 1,277 | 2,656 | 2,560 | 13,860 | 20,353 | |||||||||||||||
Employment and talent contracts | 47,115 | 39,042 | 1,646 | 202 | 88,005 | |||||||||||||||
Operating leases: | ||||||||||||||||||||
Noncancelable | 11,197 | 15,740 | 17,764 | 15,311 | 60,012 | |||||||||||||||
Cancelable | 224 | 263 | 161 | 214 | 862 | |||||||||||||||
Pension obligations: | ||||||||||||||||||||
Minimum pension funding | 19,804 | 67,346 | 65,560 | 46,965 | 199,675 | |||||||||||||||
Other commitments: | ||||||||||||||||||||
Noncancelable purchase and service commitments | 31,857 | 2,609 | 65 | — | 34,531 | |||||||||||||||
Other purchase and service commitments | 71,435 | 125,191 | 73,563 | 13,218 | 283,407 | |||||||||||||||
Total contractual cash obligations | $ | 515,851 | $ | 983,673 | $ | 375,253 | $ | 811,301 | $ | 2,686,078 |
(in thousands) | ||||
Local Media group | $ | 491,219 | ||
Katz | 203,760 | |||
Triton | 83,876 | |||
Stitcher | 47,176 | |||
Newsy | 7,982 | |||
Total goodwill | $ | 834,013 |
2018 | 2017 | ||||
Discount rate for expense | 3.71% - 4.58% | 4.26 | % | ||
Discount rate for obligations | 4.38 | % | 3.70 | % | |
Long-term rate of return on plan assets for expense | 5.10 | % | 4.20%-4.30% |
As of December 31, 2018 | As of December 31, 2017 | |||||||||||||||
(in thousands) | Cost Basis | Fair Value | Cost Basis | Fair Value | ||||||||||||
Financial instruments subject to interest rate risk: | ||||||||||||||||
Variable rate credit facility | $ | — | $ | — | $ | — | $ | — | ||||||||
Senior unsecured notes | 400,000 | 374,000 | 400,000 | 400,000 | ||||||||||||
Term loan B | 296,250 | 288,844 | 299,250 | 300,935 | ||||||||||||
Unsecured subordinated notes | — | — | 2,656 | 2,637 | ||||||||||||
Long-term debt, including current portion | $ | 696,250 | $ | 662,844 | $ | 701,906 | $ | 703,572 | ||||||||
Financial instruments subject to market value risk: | ||||||||||||||||
Investments held at cost | $ | 4,114 | (a) | $ | 4,603 | (a) |
(a) | Includes securities that do not trade in public markets, thus the securities do not have readily determinable fair values. We estimate the fair value of these securities approximates their carrying value. |
1. | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
2. | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and the directors of the Company; and |
3. | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. |
/s/ Adam P. Symson | ||
Adam P. Symson | ||
President and Chief Executive Officer | ||
/s/ Lisa A. Knutson | ||
Lisa A. Knutson | ||
Executive Vice President and Chief Financial Officer |
As of December 31, | ||||||||
(in thousands, except share data) | 2018 | 2017 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 107,114 | $ | 148,699 | ||||
Accounts and notes receivable (less allowances — $4,371 and $1,949) | 281,330 | 245,365 | ||||||
Programming | 34,432 | 53,468 | ||||||
FCC repack receivable | 19,242 | — | ||||||
Miscellaneous | 28,899 | 21,998 | ||||||
Assets held for sale | — | 136,004 | ||||||
Total current assets | 471,017 | 605,534 | ||||||
Investments | 7,162 | 7,699 | ||||||
Property and equipment | 237,927 | 209,995 | ||||||
Goodwill | 834,013 | 755,949 | ||||||
Other intangible assets | 478,953 | 425,975 | ||||||
Programming (less current portion) | 75,333 | 85,269 | ||||||
Deferred income taxes | 9,141 | 20,076 | ||||||
Miscellaneous | 16,515 | 19,051 | ||||||
Total Assets | $ | 2,130,061 | $ | 2,129,548 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 26,919 | $ | 23,647 | ||||
Unearned revenue | 11,459 | 7,353 | ||||||
Current portion of long-term debt | 3,000 | 5,656 | ||||||
Accrued liabilities: | ||||||||
Employee compensation and benefits | 44,929 | 41,939 | ||||||
Miscellaneous | 46,112 | 44,396 | ||||||
Programming liability | 40,301 | 58,176 | ||||||
Other current liabilities | 25,339 | 10,085 | ||||||
Liabilities held for sale | — | 19,536 | ||||||
Total current liabilities | 198,059 | 210,788 | ||||||
Long-term debt (less current portion) | 685,764 | 687,619 | ||||||
Deferred income taxes | 25,531 | — | ||||||
Other liabilities (less current portion) | 294,542 | 293,656 | ||||||
Commitments and contingencies (Note 16) | ||||||||
Equity: | ||||||||
Preferred stock, $.01 par — authorized: 25,000,000 shares; none outstanding | — | — | ||||||
Common stock, $.01 par: | ||||||||
Class A — authorized: 240,000,000 shares; issued and outstanding: 2018 - 68,736,867 shares; 2017 - 69,699,105 shares | 688 | 697 | ||||||
Voting — authorized: 60,000,000 shares; issued and outstanding: 2018 - 11,932,722 shares; 2017 - 11,932,722 shares | 119 | 119 | ||||||
Total | 807 | 816 | ||||||
Additional paid-in capital | 1,106,984 | 1,129,020 | ||||||
Accumulated deficit | (86,229 | ) | (90,061 | ) | ||||
Accumulated other comprehensive loss, net of income taxes | (95,397 | ) | (102,922 | ) | ||||
Total The E.W. Scripps Company shareholders' equity | 926,165 | 936,853 | ||||||
Noncontrolling interest | — | 632 | ||||||
Total equity | 926,165 | 937,485 | ||||||
Total Liabilities and Equity | $ | 2,130,061 | $ | 2,129,548 |
For the years ended December 31, | ||||||||||||
(in thousands, except per share data) | 2018 | 2017 | 2016 | |||||||||
Operating Revenues: | ||||||||||||
Advertising | $ | 836,049 | $ | 563,879 | $ | 608,748 | ||||||
Retransmission and carriage | 304,402 | 259,712 | 220,723 | |||||||||
Other | 67,974 | 53,381 | 44,980 | |||||||||
Total operating revenues | 1,208,425 | 876,972 | 874,451 | |||||||||
Costs and Expenses: | ||||||||||||
Employee compensation and benefits | 394,029 | 367,735 | 343,570 | |||||||||
Programming | 350,753 | 228,605 | 172,617 | |||||||||
Impairment of programming assets | 8,920 | — | — | |||||||||
Other expenses | 246,487 | 185,869 | 173,797 | |||||||||
Acquisition and related integration costs | 4,124 | — | 578 | |||||||||
Restructuring costs | 8,911 | 4,422 | — | |||||||||
Total costs and expenses | 1,013,224 | 786,631 | 690,562 | |||||||||
Depreciation, Amortization, and (Gains) Losses: | ||||||||||||
Depreciation | 34,641 | 34,049 | 32,474 | |||||||||
Amortization of intangible assets | 29,346 | 22,294 | 22,730 | |||||||||
Impairment of goodwill and intangible assets | — | 35,732 | — | |||||||||
(Gains) losses, net on disposal of property and equipment | 1,255 | 169 | 480 | |||||||||
Net depreciation, amortization, and (gains) losses | 65,242 | 92,244 | 55,684 | |||||||||
Operating income (loss) | 129,959 | (1,903 | ) | 128,205 | ||||||||
Interest expense | (36,184 | ) | (26,697 | ) | (18,039 | ) | ||||||
Defined benefit pension plan expense | (19,752 | ) | (14,112 | ) | (14,332 | ) | ||||||
Miscellaneous, net | 152 | 10,636 | (2,646 | ) | ||||||||
Income (loss) from continuing operations before income taxes | 74,175 | (32,076 | ) | 93,188 | ||||||||
Provision (benefit) for income taxes | 18,098 | (20,054 | ) | 33,266 | ||||||||
Income (loss) from continuing operations, net of tax | 56,077 | (12,022 | ) | 59,922 | ||||||||
Income (loss) from discontinued operations, net of tax | (36,328 | ) | (2,595 | ) | 7,313 | |||||||
Net income (loss) | 19,749 | (14,617 | ) | 67,235 | ||||||||
Loss attributable to noncontrolling interest | (632 | ) | (1,511 | ) | — | |||||||
Net income (loss) attributable to the shareholders of The E.W. Scripps Company | $ | 20,381 | $ | (13,106 | ) | $ | 67,235 | |||||
Net income (loss) per basic share of common stock attributable to the shareholders of The E.W. Scripps Company: | ||||||||||||
Income (loss) from continuing operations | $ | 0.69 | $ | (0.13 | ) | $ | 0.71 | |||||
Income (loss) from discontinued operations | (0.44 | ) | (0.03 | ) | 0.09 | |||||||
Net income (loss) per basic share of common stock attributable to the shareholders of The E.W. Scripps Company | $ | 0.25 | $ | (0.16 | ) | $ | 0.80 | |||||
Net income (loss) per diluted share of common stock attributable to the shareholders of The E.W. Scripps Company: | ||||||||||||
Income (loss) from continuing operations | $ | 0.68 | $ | (0.13 | ) | $ | 0.71 | |||||
Income (loss) from discontinued operations | (0.44 | ) | (0.03 | ) | 0.09 | |||||||
Net income (loss) per diluted share of common stock attributable to the shareholders of The E.W. Scripps Company | $ | 0.24 | $ | (0.16 | ) | $ | 0.80 | |||||
Weighted average shares outstanding: | ||||||||||||
Basic | 81,369 | 82,052 | 83,339 | |||||||||
Diluted | 81,927 | 82,052 | 83,639 |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Net income (loss) | $ | 19,749 | $ | (14,617 | ) | $ | 67,235 | |||||
Changes in fair value of derivative, net of tax of $0, $0 and $142 | — | — | 242 | |||||||||
Changes in defined benefit pension plans, net of tax of $2,557, $4,152, and $(2,455) | 7,590 | 10,150 | (3,936 | ) | ||||||||
Other, net of tax of $(22), $(136) and $102 | (65 | ) | (355 | ) | 149 | |||||||
Total comprehensive income (loss) | 27,274 | (4,822 | ) | 63,690 | ||||||||
Less comprehensive income (loss) attributable to noncontrolling interest | (632 | ) | (1,511 | ) | — | |||||||
Total comprehensive income (loss) attributable to the shareholders of The E.W. Scripps Company | $ | 27,906 | $ | (3,311 | ) | $ | 63,690 |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net income (loss) | $ | 19,749 | $ | (14,617 | ) | $ | 67,235 | |||||
Income (loss) from discontinued operations, net of tax | (36,328 | ) | (2,595 | ) | 7,313 | |||||||
Income (loss) from continuing operations, net of tax | 56,077 | (12,022 | ) | 59,922 | ||||||||
Adjustments to reconcile net income (loss) from continuing operations to net cash flows from operating activities: | ||||||||||||
Depreciation and amortization | 63,987 | 56,343 | 55,204 | |||||||||
Impairment of goodwill and intangible assets | — | 35,732 | — | |||||||||
Impairment of programming assets | 8,920 | — | — | |||||||||
Loss (gain) on disposition of investments | 251 | (6,106 | ) | — | ||||||||
(Gains) losses on sale of property and equipment | 1,255 | 169 | 480 | |||||||||
Programming assets and liabilities | (12,788 | ) | (9,172 | ) | (2,327 | ) | ||||||
Deferred income taxes | 19,354 | (16,084 | ) | 38,794 | ||||||||
Stock and deferred compensation plans | 10,741 | 15,872 | 10,857 | |||||||||
Pension expense, net of contributions | (4,052 | ) | (6,738 | ) | 4,936 | |||||||
Other changes in certain working capital accounts, net | (16,159 | ) | (22,190 | ) | (33,646 | ) | ||||||
Miscellaneous, net | 2,645 | (5,619 | ) | 1,677 | ||||||||
Net cash provided by operating activities from continuing operations | 130,231 | 30,185 | 135,897 | |||||||||
Net cash provided by operating activities from discontinued operations | 10,680 | 10,667 | 10,596 | |||||||||
Net operating activities | 140,911 | 40,852 | 146,493 | |||||||||
Cash Flows from Investing Activities: | ||||||||||||
Acquisitions, net of cash acquired | (149,469 | ) | (280,940 | ) | (43,500 | ) | ||||||
Additions to property and equipment | (53,253 | ) | (17,932 | ) | (25,911 | ) | ||||||
Acquisition of intangible assets | (7,229 | ) | (9,745 | ) | — | |||||||
Purchase of investments | (558 | ) | (836 | ) | (2,128 | ) | ||||||
Proceeds from FCC repack | 1,530 | — | — | |||||||||
Miscellaneous, net | 2,307 | 12,886 | 147 | |||||||||
Net cash used in investing activities from continuing operations | (206,672 | ) | (296,567 | ) | (71,392 | ) | ||||||
Net cash provided by (used in) investing activities from discontinued operations | 79,188 | (2,500 | ) | (2,036 | ) | |||||||
Net investing activities | (127,484 | ) | (299,067 | ) | (73,428 | ) | ||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from issuance of long-term debt | — | 700,000 | — | |||||||||
Payments on long-term debt | (5,656 | ) | (393,927 | ) | (6,635 | ) | ||||||
Deferred financing costs | — | (9,671 | ) | — | ||||||||
Dividends paid | (16,395 | ) | — | — | ||||||||
Repurchase of Class A Common shares | (32,323 | ) | (17,885 | ) | (44,401 | ) | ||||||
Proceeds from exercise of stock options | 1,857 | 1,461 | 4,641 | |||||||||
Tax payments related to shares withheld for vested stock and RSUs | (3,796 | ) | (4,576 | ) | (2,681 | ) | ||||||
Miscellaneous, net | 1,316 | (2,840 | ) | (4,258 | ) | |||||||
Net cash provided by (used in) financing activities from continuing operations | (54,997 | ) | 272,562 | (53,334 | ) | |||||||
Effect of foreign exchange rates on cash, cash equivalents and restricted cash | (15 | ) | — | — | ||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (41,585 | ) | 14,347 | 19,731 | ||||||||
Cash, cash equivalents and restricted cash: | ||||||||||||
Beginning of year | 148,699 | 134,352 | 114,621 | |||||||||
End of year | $ | 107,114 | $ | 148,699 | $ | 134,352 | ||||||
Supplemental Cash Flow Disclosures | ||||||||||||
Interest paid | $ | 33,673 | $ | 18,956 | $ | 15,620 | ||||||
Income taxes paid | $ | 3,729 | $ | 1,756 | $ | 1,100 | ||||||
Non-cash investing information | ||||||||||||
Capital expenditures included in accounts payable | $ | 693 | $ | 286 | $ | 102 |
(in thousands, except share data) | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) ("AOCI") | Noncontrolling Interests | Total Equity | ||||||||||||||||||
As of December 31, 2015, as originally reported | $ | 838 | $ | 1,163,985 | $ | (174,038 | ) | $ | (89,802 | ) | $ | — | $ | 900,983 | ||||||||||
Adoption of new accounting guidance | — | (58 | ) | 14,808 | — | — | 14,750 | |||||||||||||||||
As of January 1, 2016, as adjusted | 838 | 1,163,927 | (159,230 | ) | (89,802 | ) | — | 915,733 | ||||||||||||||||
Comprehensive income (loss) | — | — | 67,235 | (3,545 | ) | — | 63,690 | |||||||||||||||||
Repurchase 2,711,865 Class A Common Shares | (27 | ) | (42,292 | ) | (2,082 | ) | — | — | (44,401 | ) | ||||||||||||||
Compensation plans: 867,196 net shares issued* | 8 | 10,905 | — | — | — | 10,913 | ||||||||||||||||||
As of December 31, 2016 | 819 | 1,132,540 | (94,077 | ) | (93,347 | ) | — | 945,935 | ||||||||||||||||
Minority interest contribution to subsidiary | — | — | — | — | 2,143 | 2,143 | ||||||||||||||||||
Comprehensive income (loss) | — | — | (13,106 | ) | 9,795 | (1,511 | ) | (4,822 | ) | |||||||||||||||
Repurchase 1,004,451 Class A Common Shares | (10 | ) | (15,627 | ) | (2,248 | ) | — | — | (17,885 | ) | ||||||||||||||
Compensation plans: 661,256 net shares issued * | 7 | 12,107 | — | — | — | 12,114 | ||||||||||||||||||
Reclassification of disproportionate tax effects from AOCI | — | — | 19,370 | (19,370 | ) | — | — | |||||||||||||||||
As of December 31, 2017 | 816 | 1,129,020 | (90,061 | ) | (102,922 | ) | 632 | 937,485 | ||||||||||||||||
Comprehensive income (loss) | — | — | 20,381 | 7,525 | (632 | ) | 27,274 | |||||||||||||||||
Cash dividend: declared and paid - $0.20 per share | — | — | (16,395 | ) | — | — | (16,395 | ) | ||||||||||||||||
Repurchase 1,813,249 Class A Common Shares | (18 | ) | (32,151 | ) | (154 | ) | — | — | (32,323 | ) | ||||||||||||||
Compensation plans: 851,011 net shares issued * | 9 | 10,115 | — | — | — | 10,124 | ||||||||||||||||||
As of December 31, 2018 | $ | 807 | $ | 1,106,984 | $ | (86,229 | ) | $ | (95,397 | ) | $ | — | $ | 926,165 |
(in thousands) | ||||
January 1, 2016 | $ | 1,517 | ||
Charged to costs and expenses | 1,601 | |||
Amounts charged off, net | (1,628 | ) | ||
Balance as of December 31, 2016 | 1,490 | |||
Charged to costs and expenses | 1,407 | |||
Amounts charged off, net | (948 | ) | ||
Balance as of December 31, 2017 | 1,949 | |||
Charged to costs and expenses | 3,767 | |||
Amounts charged off, net | (1,345 | ) | ||
Balance as of December 31, 2018 | $ | 4,371 |
Buildings and improvements | 15 to 45 years |
Leasehold improvements | Shorter of term of lease or useful life |
Broadcast transmission towers and related equipment | 15 to 35 years |
Other broadcast and program production equipment | 3 to 15 years |
Computer hardware | 3 to 5 years |
Office and other equipment | 3 to 10 years |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Numerator (for basic and diluted earnings per share) | ||||||||||||
Income (loss) from continuing operations, net of tax | $ | 56,077 | $ | (12,022 | ) | $ | 59,922 | |||||
Loss attributable to noncontrolling interest | 632 | 1,511 | — | |||||||||
Less income allocated to RSUs | (908 | ) | — | (817 | ) | |||||||
Numerator for basic and diluted earnings per share from continuing operations attributable to the shareholders of The E.W. Scripps Company | $ | 55,801 | $ | (10,511 | ) | $ | 59,105 | |||||
Denominator | ||||||||||||
Basic weighted-average shares outstanding | 81,369 | 82,052 | 83,339 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock options and restricted stock units | 558 | — | 300 | |||||||||
Diluted weighted-average shares outstanding | 81,927 | 82,052 | 83,639 | |||||||||
Anti-dilutive securities(1) | — | 1,220 | — |
(1) | Amount outstanding at balance sheet date, before application of the treasury stock method and not weighted for period outstanding. |
Year Ended December 31, 2017 | ||||||||||||
(in thousands) | As Previously Reported | Adjustments for Adoption of New Revenue Standard | As Adjusted | |||||||||
Operating Revenues: | ||||||||||||
Advertising | $ | 564,708 | $ | (829 | ) | $ | 563,879 | |||||
Retransmission and carriage | 259,712 | — | 259,712 | |||||||||
Other | 40,414 | 12,967 | 53,381 | |||||||||
Total operating revenues | 864,834 | 12,138 | 876,972 | |||||||||
Costs and Expenses: | ||||||||||||
Employee compensation and benefits | 367,735 | — | 367,735 | |||||||||
Programming | 216,467 | 12,138 | 228,605 | |||||||||
Other expenses | 185,869 | — | 185,869 | |||||||||
Restructuring costs | 4,422 | — | 4,422 | |||||||||
Total costs and expenses | $ | 774,493 | $ | 12,138 | $ | 786,631 |
Year Ended December 31, 2016 | ||||||||||||
(in thousands) | As Previously Reported | Adjustments for Adoption of New Revenue Standard | As Adjusted | |||||||||
Operating Revenues: | ||||||||||||
Advertising | $ | 609,612 | $ | (864 | ) | $ | 608,748 | |||||
Retransmission and carriage | 220,723 | — | 220,723 | |||||||||
Other | 38,485 | 6,495 | 44,980 | |||||||||
Total operating revenues | 868,820 | 5,631 | 874,451 | |||||||||
Costs and Expenses: | ||||||||||||
Employee compensation and benefits | 343,570 | — | 343,570 | |||||||||
Programming | 166,986 | 5,631 | 172,617 | |||||||||
Other expenses | 173,797 | — | 173,797 | |||||||||
Acquisition and related integration costs | 578 | — | 578 | |||||||||
Total costs and expenses | $ | 684,931 | $ | 5,631 | $ | 690,562 |
(in thousands) | ||||
Cash | $ | 10,515 | ||
Accounts receivable | 8,650 | |||
Other current assets | 679 | |||
Property and equipment | 705 | |||
Goodwill | 83,876 | |||
Other intangible assets | 75,000 | |||
Accounts payable | (1,881 | ) | ||
Accrued expenses | (2,964 | ) | ||
Other current liabilities | (19 | ) | ||
Deferred tax liability | (14,577 | ) | ||
Total purchase price | $ | 159,984 |
(in thousands) | ||||
Cash | $ | 21,372 | ||
Accounts receivable | 44,306 | |||
Current portion of programming | 36,218 | |||
Intangible assets | 32,300 | |||
Goodwill | 203,760 | |||
Programming (less current portion) | 52,908 | |||
Other assets | 11,356 | |||
Accounts payable and accrued liabilities | (29,339 | ) | ||
Current portion of programming liabilities | (32,877 | ) | ||
Programming liabilities | (37,692 | ) | ||
Net purchase price | $ | 302,312 |
For the years ended December 31, | ||||||||
(in thousands, except per share data) (unaudited) | 2017 | 2016 | ||||||
Operating revenues | $ | 986,373 | $ | 998,916 | ||||
Income (loss) from continuing operations | (12,477 | ) | 55,506 | |||||
Income (loss) per share from continuing operations attributable to the shareholders of The E.W. Scripps Company | ||||||||
Basic | $ | (0.13 | ) | $ | 0.66 | |||
Diluted | (0.13 | ) | 0.65 |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Current: | ||||||||||||
Federal | $ | (719 | ) | $ | 215 | $ | 904 | |||||
State and local | 1,119 | (963 | ) | (1,628 | ) | |||||||
Foreign | 1 | — | — | |||||||||
Total current income tax provision (benefit) | 401 | (748 | ) | (724 | ) | |||||||
Deferred: | ||||||||||||
Federal | 16,513 | (16,602 | ) | 31,029 | ||||||||
State and local | 1,188 | (2,704 | ) | 2,961 | ||||||||
Foreign | (4 | ) | — | — | ||||||||
Total deferred income tax provision (benefit) | 17,697 | (19,306 | ) | 33,990 | ||||||||
Provision (benefit) for income taxes | $ | 18,098 | $ | (20,054 | ) | $ | 33,266 |
For the years ended December 31, | |||||||||
2018 | 2017 | 2016 | |||||||
Statutory rate | 21.0 | % | 35.0 | % | 35.0 | % | |||
Effect of: | |||||||||
State and local income taxes, net of federal tax benefit | 3.0 | 2.2 | 3.0 | ||||||
Excess tax benefits from stock-based compensation | 0.9 | 7.1 | (1.8 | ) | |||||
Nondeductible expenses | 1.5 | (4.6 | ) | 1.4 | |||||
Reserve for uncertain tax positions | (0.2 | ) | 3.6 | (0.8 | ) | ||||
U.S. federal statutory rate change | — | 13.2 | — | ||||||
Other | (1.8 | ) | 6.0 | (1.1 | ) | ||||
Effective income tax rate | 24.4 | % | 62.5 | % | 35.7 | % |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Temporary differences: | ||||||||
Property and equipment | $ | (14,545 | ) | $ | (14,493 | ) | ||
Goodwill and other intangible assets | (81,721 | ) | (52,532 | ) | ||||
Investments, primarily gains and losses not yet recognized for tax purposes | 3,067 | 2,792 | ||||||
Accrued expenses not deductible until paid | 8,792 | 7,136 | ||||||
Deferred compensation and retiree benefits not deductible until paid | 56,902 | 61,070 | ||||||
Other temporary differences, net | 3,416 | 3,267 | ||||||
Total temporary differences | (24,089 | ) | 7,240 | |||||
Federal and state net operating loss carryforwards | 12,800 | 15,455 | ||||||
Valuation allowance for state deferred tax assets | (5,101 | ) | (2,619 | ) | ||||
Net deferred tax asset (liability) | $ | (16,390 | ) | $ | 20,076 |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Gross unrecognized tax benefits at beginning of year | $ | 1,088 | $ | 2,665 | $ | 5,011 | ||||||
Increases in tax positions for prior years | 130 | 16 | 22 | |||||||||
Decreases in tax positions for prior years | (33 | ) | (390 | ) | (1,684 | ) | ||||||
Increases in tax positions for current years | 182 | — | 336 | |||||||||
Decreases in tax positions for current years | — | (54 | ) | — | ||||||||
Decreases from lapse in statute of limitations | (255 | ) | (1,149 | ) | (1,020 | ) | ||||||
Gross unrecognized tax benefits at end of year | $ | 1,112 | $ | 1,088 | $ | 2,665 |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Investments held at cost | $ | 4,114 | $ | 4,603 | ||||
Equity method investments | 3,048 | 3,096 | ||||||
Total investments | $ | 7,162 | $ | 7,699 |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Land and improvements | $ | 47,054 | $ | 47,405 | ||||
Buildings and improvements | 149,159 | 139,685 | ||||||
Equipment | 346,850 | 308,873 | ||||||
Computer software | 17,492 | 14,658 | ||||||
Total | 560,555 | 510,621 | ||||||
Accumulated depreciation | 322,628 | 300,626 | ||||||
Net property and equipment | $ | 237,927 | $ | 209,995 |
(in thousands) | Local Media | National Media | Total | |||||||||
Gross balance as of December 31, 2015 | $ | 708,133 | $ | 74,568 | $ | 782,701 | ||||||
Accumulated impairment losses | (216,914 | ) | (21,000 | ) | (237,914 | ) | ||||||
Net balance as of December 31, 2015 | 491,219 | 53,568 | 544,787 | |||||||||
Cracked acquisition | — | 29,403 | 29,403 | |||||||||
Stitcher acquisition | — | 1,590 | 1,590 | |||||||||
Balance as of December 31, 2016 | $ | 491,219 | $ | 84,561 | $ | 575,780 | ||||||
Gross balance as of December 31, 2016 | $ | 708,133 | $ | 105,561 | $ | 813,694 | ||||||
Accumulated impairment losses | (216,914 | ) | (21,000 | ) | (237,914 | ) | ||||||
Net balance as of December 31, 2016 | 491,219 | 84,561 | 575,780 | |||||||||
Cracked impairment charge | — | (29,403 | ) | (29,403 | ) | |||||||
Katz acquisition | — | 209,572 | 209,572 | |||||||||
Balance as of December 31, 2017 | $ | 491,219 | $ | 264,730 | $ | 755,949 | ||||||
Gross balance as of December 31, 2017 | $ | 708,133 | $ | 315,133 | $ | 1,023,266 | ||||||
Accumulated impairment losses | (216,914 | ) | (50,403 | ) | (267,317 | ) | ||||||
Net balance as of December 31, 2017 | 491,219 | 264,730 | 755,949 | |||||||||
Katz acquisition adjustments | — | (5,812 | ) | (5,812 | ) | |||||||
Triton acquisition | — | 83,876 | 83,876 | |||||||||
Balance as of December 31, 2018 | $ | 491,219 | $ | 342,794 | $ | 834,013 | ||||||
Gross balance as of December 31, 2018 | $ | 708,133 | $ | 393,197 | $ | 1,101,330 | ||||||
Accumulated impairment losses | (216,914 | ) | (50,403 | ) | (267,317 | ) | ||||||
Net balance as of December 31, 2018 | $ | 491,219 | $ | 342,794 | $ | 834,013 |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Amortizable intangible assets: | ||||||||
Carrying amount: | ||||||||
Television network affiliation relationships | $ | 248,444 | $ | 248,444 | ||||
Customer lists and advertiser relationships | 100,500 | 69,500 | ||||||
Other | 88,393 | 37,069 | ||||||
Total carrying amount | 437,337 | 355,013 | ||||||
Accumulated amortization: | ||||||||
Television network affiliation relationships | (62,020 | ) | (49,639 | ) | ||||
Customer lists and advertiser relationships | (36,380 | ) | (26,345 | ) | ||||
Other | (17,199 | ) | (10,269 | ) | ||||
Total accumulated amortization | (115,599 | ) | (86,253 | ) | ||||
Net amortizable intangible assets | 321,738 | 268,760 | ||||||
Indefinite-lived intangible assets — FCC licenses | 157,215 | 157,215 | ||||||
Total other intangible assets | $ | 478,953 | $ | 425,975 |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Variable rate credit facility | $ | — | $ | — | ||||
Senior unsecured notes | 400,000 | 400,000 | ||||||
Term loan B | 296,250 | 299,250 | ||||||
Unsecured subordinated notes | — | 2,656 | ||||||
Total outstanding principal | 696,250 | 701,906 | ||||||
Less: Debt issuance costs | (7,486 | ) | (8,631 | ) | ||||
Less: Current portion | (3,000 | ) | (5,656 | ) | ||||
Net carrying value of long-term debt | 685,764 | 687,619 | ||||||
Fair value of long-term debt * | $ | 662,844 | $ | 703,572 |
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. |
• | Level 2 — Inputs, other than quoted market prices in active markets, that are observable either directly or indirectly. |
• | Level 3 — Unobservable inputs based on our own assumptions. |
December 31, 2018 | ||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Cash equivalents | $ | 1,007 | $ | 1,007 | $ | — | $ | — |
December 31, 2017 | ||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Cash equivalents | $ | 69,480 | $ | 69,480 | $ | — | $ | — |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Employee compensation and benefits | $ | 19,775 | $ | 18,520 | ||||
Deferred FCC repack income | 20,620 | — | ||||||
Programming liability | 43,825 | 54,641 | ||||||
Liability for pension benefits | 198,444 | 207,406 | ||||||
Liabilities for uncertain tax positions | 811 | 644 | ||||||
Other | 11,067 | 12,445 | ||||||
Other liabilities (less current portion) | $ | 294,542 | $ | 293,656 |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Accounts receivable | $ | (22,130 | ) | $ | (22,522 | ) | $ | (20,511 | ) | |||
Other current assets | (6,207 | ) | (6,150 | ) | (3,130 | ) | ||||||
Accounts payable | 965 | (7,259 | ) | 460 | ||||||||
Accrued employee compensation and benefits | 9,218 | 3,175 | (1,056 | ) | ||||||||
Other accrued liabilities | (1,525 | ) | 12,645 | (6,100 | ) | |||||||
Unearned revenue | 2,915 | 943 | (1,353 | ) | ||||||||
Other, net | 605 | (3,022 | ) | (1,956 | ) | |||||||
Total | $ | (16,159 | ) | $ | (22,190 | ) | $ | (33,646 | ) |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Interest cost | $ | 23,836 | $ | 25,966 | $ | 27,359 | ||||||
Expected return on plan assets, net of expenses | (22,232 | ) | (17,439 | ) | (18,466 | ) | ||||||
Amortization of actuarial loss | 3,527 | 4,424 | 4,406 | |||||||||
Settlement losses | 11,713 | — | — | |||||||||
Total for defined benefit plans | 16,844 | 12,951 | 13,299 | |||||||||
Multi-employer plans | 190 | 253 | 168 | |||||||||
SERPs | 2,908 | 1,161 | 1,033 | |||||||||
Defined contribution plan | 8,619 | 9,183 | 8,265 | |||||||||
Net periodic benefit cost | 28,561 | 23,548 | 22,765 | |||||||||
Allocated to discontinued operations | (543 | ) | (687 | ) | (652 | ) | ||||||
Net periodic benefit cost - continuing operations | $ | 28,018 | $ | 22,861 | $ | 22,113 |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Actuarial gain/(loss) | $ | (7,765 | ) | $ | 12,205 | $ | (9,379 | ) | ||||
Amortization of actuarial loss | 3,527 | 4,424 | 4,406 | |||||||||
Prior service cost | (424 | ) | — | — | ||||||||
Reclassification of actuarial loss related to settlement | 11,713 | — | — | |||||||||
Total | $ | 7,051 | $ | 16,629 | $ | (4,973 | ) |
2018 (1) | 2017 (2) | 2016 (2) | |||||||
Discount rate | 3.71% - 4.58% | 4.26 | % | 4.55 | % | ||||
Long-term rate of return on plan assets | 5.10 | % | 4.20%-4.30% | 4.50%-4.65% |
Defined Benefit Plans | SERPs | |||||||||||||||
For the years ended December 31, | ||||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Change in projected benefit obligation: | ||||||||||||||||
Projected benefit obligation at beginning of year | $ | 654,536 | $ | 625,535 | $ | 23,691 | $ | 21,260 | ||||||||
Interest cost | 23,836 | 25,966 | 746 | 869 | ||||||||||||
Benefits paid | (33,872 | ) | (34,997 | ) | (1,021 | ) | (948 | ) | ||||||||
Actuarial (gains)/losses | (46,800 | ) | 38,032 | (1,034 | ) | 2,510 | ||||||||||
Plan Amendments | 424 | — | — | — | ||||||||||||
Settlements | (53,543 | ) | — | (5,397 | ) | — | ||||||||||
Projected benefit obligation at end of year | 544,581 | 654,536 | 16,985 | 23,691 | ||||||||||||
Plan assets: | ||||||||||||||||
Fair value at beginning of year | 464,441 | 412,459 | — | — | ||||||||||||
Actual return on plan assets | (32,334 | ) | 67,676 | — | — | |||||||||||
Company contributions | 17,199 | 19,303 | 6,418 | 948 | ||||||||||||
Benefits paid | (33,872 | ) | (34,997 | ) | (1,021 | ) | (948 | ) | ||||||||
Settlements | (53,543 | ) | — | (5,397 | ) | — | ||||||||||
Fair value at end of year | 361,891 | 464,441 | — | — | ||||||||||||
Funded status | $ | (182,690 | ) | $ | (190,095 | ) | $ | (16,985 | ) | $ | (23,691 | ) | ||||
Amounts recognized in Consolidated Balance Sheets: | ||||||||||||||||
Current liabilities | $ | — | $ | — | $ | (1,231 | ) | $ | (6,380 | ) | ||||||
Noncurrent liabilities | (182,690 | ) | (190,095 | ) | (15,754 | ) | (17,311 | ) | ||||||||
Total | $ | (182,690 | ) | $ | (190,095 | ) | $ | (16,985 | ) | $ | (23,691 | ) | ||||
Amounts recognized in accumulated other comprehensive loss consist of: | ||||||||||||||||
Net actuarial loss | $ | 120,191 | $ | 127,666 | $ | 5,571 | $ | 8,667 | ||||||||
Prior service cost | 424 | — | — | — |
Defined Benefit Plans | SERPs | |||||||||||||||
As of December 31, | ||||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Accumulated benefit obligation | $ | 544,581 | $ | 654,536 | $ | 16,985 | $ | 23,691 | ||||||||
Projected benefit obligation | 544,581 | 654,536 | 16,985 | 23,691 | ||||||||||||
Fair value of plan assets | 361,891 | 464,441 | — | — |
2018 | 2017 | 2016 | |||||||
Weighted average discount rate | 4.38 | % | 3.70 | % | 4.26 | % |
Target allocation | Percentage of plan assets as of December 31, | ||||||||
2019 | 2018 | 2017 | |||||||
US equity securities | 20 | % | 19 | % | 21 | % | |||
Non-US equity securities | 30 | % | 28 | % | 29 | % | |||
Fixed-income securities | 45 | % | 46 | % | 44 | % | |||
Other | 5 | % | 7 | % | 6 | % | |||
Total | 100 | % | 100 | % | 100 | % |
As of December 31, | ||||||||
(in thousands) | 2018 | 2017 | ||||||
Equity securities | ||||||||
Common/collective trust funds | $ | 168,547 | $ | 234,061 | ||||
Fixed income | ||||||||
Common/collective trust funds | 166,079 | 204,453 | ||||||
Real estate fund | 24,798 | 23,102 | ||||||
Cash equivalents | 2,467 | 2,825 | ||||||
Fair value of plan assets | $ | 361,891 | $ | 464,441 |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Segment operating revenues: | ||||||||||||
Local Media | $ | 917,480 | $ | 778,376 | $ | 835,290 | ||||||
National Media | 286,170 | 93,141 | 34,424 | |||||||||
Other | 4,775 | 5,455 | 4,737 | |||||||||
Total operating revenues | $ | 1,208,425 | $ | 876,972 | $ | 874,451 | ||||||
Segment profit (loss): | ||||||||||||
Local Media | $ | 251,119 | $ | 156,890 | $ | 243,298 | ||||||
National Media | 13,920 | (9,260 | ) | (10,156 | ) | |||||||
Other | (3,680 | ) | (2,361 | ) | (2,513 | ) | ||||||
Shared services and corporate | (53,123 | ) | (50,506 | ) | (46,162 | ) | ||||||
Acquisition and related integration costs | (4,124 | ) | — | (578 | ) | |||||||
Restructuring costs | (8,911 | ) | (4,422 | ) | — | |||||||
Depreciation and amortization of intangible assets | (63,987 | ) | (56,343 | ) | (55,204 | ) | ||||||
Impairment of goodwill and intangible assets | — | (35,732 | ) | — | ||||||||
Gains (losses), net on disposal of property and equipment | (1,255 | ) | (169 | ) | (480 | ) | ||||||
Interest expense | (36,184 | ) | (26,697 | ) | (18,039 | ) | ||||||
Defined benefit pension plan expense | (19,752 | ) | (14,112 | ) | (14,332 | ) | ||||||
Miscellaneous, net | 152 | 10,636 | (2,646 | ) | ||||||||
Income (loss) from continuing operations before income taxes | $ | 74,175 | $ | (32,076 | ) | $ | 93,188 | |||||
Depreciation: | ||||||||||||
Local Media | $ | 30,467 | $ | 31,870 | $ | 30,184 | ||||||
National Media | 2,592 | 88 | 164 | |||||||||
Other | 150 | 208 | 263 | |||||||||
Shared services and corporate | 1,432 | 1,883 | 1,863 | |||||||||
Total depreciation | $ | 34,641 | $ | 34,049 | $ | 32,474 | ||||||
Amortization of intangible assets: | ||||||||||||
Local Media | $ | 14,821 | $ | 15,084 | $ | 16,958 | ||||||
National Media | 13,172 | 5,856 | 4,419 | |||||||||
Shared services and corporate | 1,353 | 1,354 | 1,353 | |||||||||
Total amortization of intangible assets | $ | 29,346 | $ | 22,294 | $ | 22,730 |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Operating revenues: | ||||||||||||
Core advertising | $ | 696,449 | $ | 555,228 | $ | 507,987 | ||||||
Political | 139,600 | 8,651 | 100,761 | |||||||||
Retransmission and carriage | 304,402 | 259,712 | 220,723 | |||||||||
Other | 67,974 | 53,381 | 44,980 | |||||||||
Total operating revenues | $ | 1,208,425 | $ | 876,972 | $ | 874,451 |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Additions to property and equipment: | ||||||||||||
Local Media | $ | 37,773 | $ | 16,946 | $ | 21,064 | ||||||
National Media | 15,164 | 792 | 54 | |||||||||
Other | — | — | 124 | |||||||||
Shared services and corporate | 723 | 367 | 1,283 | |||||||||
Total additions to property and equipment | $ | 53,660 | $ | 18,105 | $ | 22,525 |
As of December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Assets: | ||||||||||||
Local Media | $ | 1,261,526 | $ | 1,273,735 | $ | 1,280,885 | ||||||
National Media | 737,987 | 528,479 | 117,725 | |||||||||
Other | 865 | 2,128 | 7,146 | |||||||||
Shared services and corporate | 129,683 | 189,202 | 184,109 | |||||||||
Total assets of continuing operations | 2,130,061 | 1,993,544 | 1,589,865 | |||||||||
Discontinued operations | — | 136,004 | 146,041 | |||||||||
Total assets | $ | 2,130,061 | $ | 2,129,548 | $ | 1,735,906 |
Number of Shares | Weighted- Average Exercise Price | Range of Exercise Prices | ||||||||
Outstanding at December 31, 2015 | 996,879 | $ | 7.45 | $ 6-9 | ||||||
Exercised | (509,965 | ) | 8.07 | 8-9 | ||||||
Outstanding at December 31, 2016 | 486,914 | 6.81 | 6-9 | |||||||
Exercised | (235,407 | ) | 6.20 | 6-8 | ||||||
Outstanding at December 31, 2017 | 251,507 | 7.38 | 6-9 | |||||||
Exercised | (251,507 | ) | 7.38 | 6-9 | ||||||
Outstanding at December 31, 2018 | — | — | — |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Cash received upon exercise | $ | 1,857 | $ | 1,461 | $ | 4,641 | ||||||
Intrinsic value (market value on date of exercise less exercise price) | 1,266 | 3,919 | 4,888 | |||||||||
Tax benefits realized | 315 | 1,497 | 1,877 |
Fair Value | |||||||||
Number of Shares | Weighted Average | Range of Prices | |||||||
Unvested at December 31, 2015 | 910,041 | $ | 18.22 | $ 10-24 | |||||
Awarded | 996,839 | 15.76 | 13-18 | ||||||
Vested | (444,267 | ) | 17.78 | 13-19 | |||||
Forfeited | (37,436 | ) | 16.82 | 12-24 | |||||
Unvested at December 31, 2016 | 1,425,177 | 17.05 | 12-24 | ||||||
Awarded | 653,522 | 22.51 | 17-24 | ||||||
Vested | (581,920 | ) | 20.78 | 14-24 | |||||
Forfeited | (308,856 | ) | 17.20 | 14-24 | |||||
Unvested at December 31, 2017 | 1,187,923 | 19.99 | 14-24 | ||||||
Awarded | 816,771 | 13.28 | 11-17 | ||||||
Vested | (771,904 | ) | 14.16 | 11-18 | |||||
Forfeited | (57,348 | ) | 16.68 | 13-23 | |||||
Unvested at December 31, 2018 | 1,175,442 | 15.86 | 11-24 |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Fair value of RSUs vested | $ | 10,930 | $ | 12,090 | $ | 7,898 | ||||||
Tax benefits realized on vesting | 1,758 | 4,630 | 3,033 |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Total share-based compensation | $ | 11,008 | $ | 12,960 | $ | 8,093 | ||||||
Included in discontinued operations | (227 | ) | (465 | ) | (270 | ) | ||||||
Included in continuing operations | $ | 10,781 | $ | 12,495 | $ | 7,823 | ||||||
Share-based compensation, net of tax | $ | 8,100 | $ | 7,717 | $ | 4,835 |
(in thousands) | Defined Benefit Pension Items | Other | Total | |||||||||
As of December 31, 2016 | $ | (93,676 | ) | $ | 329 | $ | (93,347 | ) | ||||
Other comprehensive income (loss) before reclassifications, net of tax of $2,814 and ($136) | 6,880 | (355 | ) | 6,525 | ||||||||
Amounts reclassified from AOCI, net of tax of $1,338 | 3,270 | — | 3,270 | |||||||||
Net current-period other comprehensive income (loss) | 10,150 | (355 | ) | 9,795 | ||||||||
Reclassification of disproportionate tax effects from AOCI | (19,429 | ) | 59 | (19,370 | ) | |||||||
As of December 31, 2017 | (102,955 | ) | 33 | (102,922 | ) | |||||||
Other comprehensive income (loss) before reclassifications, net of tax of $(1,803) and ($22) | (5,351 | ) | (65 | ) | (5,416 | ) | ||||||
Amounts reclassified from AOCI, net of tax of $4,360 | 12,941 | — | 12,941 | |||||||||
Net current-period other comprehensive income (loss) | 7,590 | (65 | ) | 7,525 | ||||||||
As of December 31, 2018 | $ | (95,365 | ) | $ | (32 | ) | $ | (95,397 | ) |
2018 | 1st | 2nd | 3rd | 4th | ||||||||||||||||
(in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||
Operating revenues | $ | 254,191 | $ | 283,395 | $ | 302,726 | $ | 368,113 | $ | 1,208,425 | ||||||||||
Costs and expenses | (238,682 | ) | (245,610 | ) | (247,304 | ) | (281,628 | ) | (1,013,224 | ) | ||||||||||
Depreciation and amortization of intangible assets | (15,420 | ) | (15,382 | ) | (15,598 | ) | (17,587 | ) | (63,987 | ) | ||||||||||
Gains (losses), net on disposal of property and equipment | (717 | ) | 66 | 501 | (1,105 | ) | (1,255 | ) | ||||||||||||
Interest expense | (8,759 | ) | (9,279 | ) | (9,003 | ) | (9,143 | ) | (36,184 | ) | ||||||||||
Defined benefit pension plan expense | (1,388 | ) | (1,389 | ) | (3,529 | ) | (13,446 | ) | (19,752 | ) | ||||||||||
Miscellaneous, net | 167 | (156 | ) | (546 | ) | 687 | 152 | |||||||||||||
Income (loss) from continuing operations before income taxes | (10,608 | ) | 11,645 | 27,247 | 45,891 | 74,175 | ||||||||||||||
Provision (benefit) for income taxes | (2,031 | ) | 2,983 | 7,208 | 9,938 | 18,098 | ||||||||||||||
Income (loss) from continuing operations, net of tax | (8,577 | ) | 8,662 | 20,039 | 35,953 | 56,077 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | (18,504 | ) | (2,942 | ) | (908 | ) | (13,974 | ) | (36,328 | ) | ||||||||||
Net income (loss) | (27,081 | ) | 5,720 | 19,131 | 21,979 | 19,749 | ||||||||||||||
Loss attributable to noncontrolling interest | (632 | ) | — | — | — | (632 | ) | |||||||||||||
Net income (loss) attributable to the shareholders of The E.W. Scripps Company | $ | (26,449 | ) | $ | 5,720 | $ | 19,131 | $ | 21,979 | $ | 20,381 | |||||||||
Net income (loss) from continuing operations per basic share of common stock | $ | (0.10 | ) | $ | 0.10 | $ | 0.24 | $ | 0.44 | $ | 0.69 | |||||||||
Net income (loss) from discontinued operations per basic share of common stock | $ | (0.23 | ) | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.17 | ) | $ | (0.44 | ) | |||||
Net income (loss) from continuing operations per diluted share of common stock | $ | (0.10 | ) | $ | 0.10 | $ | 0.24 | $ | 0.44 | $ | 0.68 | |||||||||
Net income (loss) from discontinued operations per diluted share of common stock | $ | (0.23 | ) | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.17 | ) | $ | (0.44 | ) | |||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 81,554 | 81,824 | 81,452 | 80,669 | 81,369 | |||||||||||||||
Diluted | 81,554 | 81,852 | 82,084 | 81,348 | 81,927 | |||||||||||||||
Cash dividends per share of common stock | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.20 |
2017 | 1st | 2nd | 3rd | 4th | ||||||||||||||||
(in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | Total | |||||||||||||||
Operating revenues | $ | 198,475 | $ | 216,242 | $ | 200,509 | $ | 261,746 | $ | 876,972 | ||||||||||
Costs and expenses | (184,414 | ) | (184,095 | ) | (189,184 | ) | (228,938 | ) | (786,631 | ) | ||||||||||
Depreciation and amortization of intangible assets | (13,861 | ) | (13,781 | ) | (13,775 | ) | (14,926 | ) | (56,343 | ) | ||||||||||
Impairment of goodwill and intangible assets | — | — | (35,732 | ) | — | (35,732 | ) | |||||||||||||
Gains (losses), net on disposal of property and equipment | (47 | ) | (15 | ) | (114 | ) | 7 | (169 | ) | |||||||||||
Interest expense | (4,195 | ) | (8,248 | ) | (5,720 | ) | (8,534 | ) | (26,697 | ) | ||||||||||
Defined benefit pension plan expense | (3,467 | ) | (3,467 | ) | (3,551 | ) | (3,627 | ) | (14,112 | ) | ||||||||||
Miscellaneous, net | (879 | ) | 5,103 | 1,187 | 5,225 | 10,636 | ||||||||||||||
Income (loss) from continuing operations before income taxes | (8,388 | ) | 11,739 | (46,380 | ) | 10,953 | (32,076 | ) | ||||||||||||
Provision (benefit) for income taxes | (5,655 | ) | 4,884 | (18,776 | ) | (507 | ) | (20,054 | ) | |||||||||||
Income (loss) from continuing operations, net of tax | (2,733 | ) | 6,855 | (27,604 | ) | 11,460 | (12,022 | ) | ||||||||||||
Income (loss) from discontinued operations, net of tax | 794 | 1,690 | 920 | (5,999 | ) | (2,595 | ) | |||||||||||||
Net income (loss) | $ | (1,939 | ) | $ | 8,545 | $ | (26,684 | ) | $ | 5,461 | $ | (14,617 | ) | |||||||
Loss attributable to noncontrolling interest | — | — | — | (1,511 | ) | (1,511 | ) | |||||||||||||
Net income (loss) attributable to the shareholders of The E.W. Scripps Company | $ | (1,939 | ) | $ | 8,545 | $ | (26,684 | ) | $ | 6,972 | $ | (13,106 | ) | |||||||
Net income (loss) from continuing operations per basic share of common stock | $ | (0.03 | ) | $ | 0.08 | $ | (0.34 | ) | $ | 0.16 | $ | (0.13 | ) | |||||||
Net income (loss) from discontinued operations per basic share of common stock | $ | 0.01 | $ | 0.02 | $ | 0.01 | $ | (0.07 | ) | $ | (0.03 | ) | ||||||||
Net income (loss) from continuing operations per diluted share of common stock | $ | (0.03 | ) | $ | 0.08 | $ | (0.34 | ) | $ | 0.16 | $ | (0.13 | ) | |||||||
Net income (loss) from discontinued operations per diluted share of common stock | $ | 0.01 | $ | 0.02 | $ | 0.01 | $ | (0.07 | ) | $ | (0.03 | ) | ||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 82,079 | 82,302 | 82,039 | 81,792 | 82,052 | |||||||||||||||
Diluted | 82,079 | 82,465 | 82,039 | 81,792 | 82,052 | |||||||||||||||
Cash dividends per share of common stock | $ | — | $ | — | $ | — | $ | — | $ | — |
For the years ended December 31, | ||||||||||||
(in thousands) | 2018 | 2017 | 2016 | |||||||||
Operating revenues | $ | 49,243 | $ | 68,630 | $ | 73,069 | ||||||
Total costs and expenses | (42,694 | ) | (57,061 | ) | (56,852 | ) | ||||||
Depreciation and amortization of intangible assets | — | (2,910 | ) | (3,377 | ) | |||||||
Impairment of goodwill and intangible assets | (25,900 | ) | (8,000 | ) | — | |||||||
Other, net | (179 | ) | (258 | ) | (63 | ) | ||||||
Income (loss) from operations of discontinued operations | (19,530 | ) | 401 | 12,777 | ||||||||
Pretax loss on disposal of discontinued operations | (18,558 | ) | — | — | ||||||||
Income (loss) from discontinued operations before income taxes | (38,088 | ) | 401 | 12,777 | ||||||||
Income tax benefit (provision) | 1,760 | (2,996 | ) | (5,464 | ) | |||||||
Income (loss) from discontinued operations, net of tax | $ | (36,328 | ) | $ | (2,595 | ) | $ | 7,313 |
(in thousands) | ||||
Assets: | ||||
Total current assets | $ | 12,891 | ||
Property and equipment | 35,470 | |||
Goodwill and intangible assets | 87,462 | |||
Other assets | 181 | |||
Total assets included in the disposal group | 136,004 | |||
Liabilities: | ||||
Total current liabilities | 3,248 | |||
Deferred income taxes | 16,288 | |||
Other liabilities | — | |||
Total liabilities included in the disposal group | 19,536 | |||
Net assets included in the disposal group | $ | 116,468 |
Name of Subsidiary | Jurisdiction of Incorporation | |
Scripps Media, Inc. | Delaware | |
Scripps Licensing, Inc. | Ohio | |
Katz Broadcasting Holdings, LLC | Georgia | |
Triton Digital Canada, Inc. | Canada |
1. | I have reviewed this annual report on Form 10-K of The E.W. Scripps Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)) and 15d-15(f) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | I have reviewed this annual report on Form 10-K of The E.W. Scripps Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)) and 15d-15(f) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
(1) | The Annual Report on Form 10-K of the Company for the year ended December 31, 2018 (the “Report”), which this certification accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
(1) | The Annual Report on Form 10-K of the Company for the year ended December 31, 2018 (the “Report”), which this certification accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Jan. 31, 2019 |
Jun. 30, 2018 |
|
Document Information [Line Items] | |||
Entity Registrant Name | E.W. SCRIPPS Co | ||
Entity Central Index Key | 0000832428 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 760,000,000 | ||
Common stock, Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 68,731,963 | ||
Voting common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 11,932,722 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Allowances for accounts and notes receivable | $ 4,371 | $ 1,949 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, Class A | ||
Common stock, shares authorized | 240,000,000 | 240,000,000 |
Common stock, shares issued | 68,736,867 | 69,699,105 |
Common stock, shares outstanding | 68,736,867 | 69,699,105 |
Voting common stock | ||
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 11,932,722 | 11,932,722 |
Common stock, shares outstanding | 11,932,722 | 11,932,722 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 19,749 | $ (14,617) | $ 67,235 |
Changes in fair value of derivative, net of tax of $0, $0 and $142 | 0 | 0 | 242 |
Changes in defined benefit pension plans, net of tax of $2,557, $4,152, and $(2,455) | 7,590 | 10,150 | (3,936) |
Other, net of tax of $(22), $(136) and $102 | (65) | (355) | 149 |
Total comprehensive income (loss) | 27,274 | (4,822) | 63,690 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (632) | (1,511) | 0 |
Total comprehensive income (loss) attributable to the shareholders of The E.W. Scripps Company | $ 27,906 | $ (3,311) | $ 63,690 |
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | |||
Changes in defined benefit pension plans, tax amount | $ 2,557,000 | $ 4,152,000 | $ (2,455,000) |
Changes in fair value of derivative, tax amount | 0 | 0 | 142,000 |
Changes in other, tax amount | $ (22,000) | $ (136,000) | $ 102,000 |
Consolidated Statements of Equity - USD ($) $ in Thousands |
Total |
Common Stock |
Additional Paid-in Capital |
Retained Earnings (Accumulated Deficit) |
Accumulated Other Comprehensive Income (Loss) (AOCI) |
Noncontrolling Interests |
Originally Reported |
Originally Reported
Common Stock
|
Originally Reported
Additional Paid-in Capital
|
Originally Reported
Retained Earnings (Accumulated Deficit)
|
Originally Reported
Accumulated Other Comprehensive Income (Loss) (AOCI)
|
Originally Reported
Noncontrolling Interests
|
As Adjusted |
As Adjusted
Common Stock
|
As Adjusted
Additional Paid-in Capital
|
As Adjusted
Retained Earnings (Accumulated Deficit)
|
As Adjusted
Accumulated Other Comprehensive Income (Loss) (AOCI)
|
As Adjusted
Noncontrolling Interests
|
||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance (Adjustment) at Dec. 31, 2015 | $ 14,750 | $ 0 | $ (58) | $ 14,808 | $ 0 | $ 0 | ||||||||||||||||||
Balance at Dec. 31, 2015 | $ 900,983 | $ 838 | $ 1,163,985 | $ (174,038) | $ (89,802) | $ 0 | $ 915,733 | $ 838 | $ 1,163,927 | $ (159,230) | $ (89,802) | $ 0 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Comprehensive income (loss) | 63,690 | 67,235 | (3,545) | 0 | ||||||||||||||||||||
Repurchase of Class A Common shares | (44,401) | [1] | (27) | [1] | (42,292) | [1] | (2,082) | |||||||||||||||||
Compensation plans: net share issued | [1] | 10,913 | 8 | 10,905 | 0 | |||||||||||||||||||
Balance at Dec. 31, 2016 | 945,935 | 819 | 1,132,540 | (94,077) | (93,347) | 0 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Comprehensive income (loss) | (4,822) | (13,106) | 9,795 | (1,511) | ||||||||||||||||||||
Minority interest contribution to subsidiary | 2,143 | 2,143 | ||||||||||||||||||||||
Repurchase of Class A Common shares | (17,885) | [1] | (10) | (15,627) | (2,248) | |||||||||||||||||||
Compensation plans: net share issued | [1] | 12,114 | 7 | 12,107 | 0 | |||||||||||||||||||
Reclassification of disproportionate tax effects from AOCI | 19,370 | 19,370 | (19,370) | |||||||||||||||||||||
Balance at Dec. 31, 2017 | 937,485 | 816 | 1,129,020 | (90,061) | (102,922) | 632 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Comprehensive income (loss) | 27,274 | 20,381 | 7,525 | (632) | ||||||||||||||||||||
Cash dividends: declared and paid | (16,395) | (16,395) | ||||||||||||||||||||||
Repurchase of Class A Common shares | (32,323) | (18) | (32,151) | (154) | ||||||||||||||||||||
Compensation plans: net share issued | [1] | 10,124 | 9 | 10,115 | ||||||||||||||||||||
Balance at Dec. 31, 2018 | $ 926,165 | $ 807 | $ 1,106,984 | $ (86,229) | $ (95,397) | $ 0 | ||||||||||||||||||
|
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Stockholders' Equity [Abstract] | |||
Shares issued on compensation plan | 851,011 | 661,256 | 867,196 |
Repurchase of Class A Common shares | 1,813,249 | 1,004,451 | 2,711,865 |
Common Stock, Dividends, Per Share, Declared | $ 0.20 | $ 0 | $ 0 |
Cash dividends per share of common stock (USD per share) | $ 0.20 | $ 0 | $ 0 |
Tax payments related to shares withheld for vested stock and RSUs | $ 3,796 | $ 4,576 | $ 2,681 |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies As used in the Notes to Consolidated Financial Statements, the terms “Scripps,” “Company,” “we,” “our,” or “us” may, depending on the context, refer to The E.W. Scripps Company, to one or more of its consolidated subsidiary companies or to all of them taken as a whole. Nature of Operations — We are a diverse media enterprise, serving audiences and businesses through a portfolio of local and national media brands. All of our media businesses provide content and advertising services via digital platforms, including the Internet, smartphones and tablets. Our media businesses are organized into the following reportable business segments: Local Media, National Media and Other. Concentration Risks — Our operations are geographically dispersed and we have a diverse customer base. We believe bad debt losses resulting from default by a single customer, or defaults by customers in any depressed region or business sector, would not have a material effect on our financial position, results of operations or cash flows. We derive approximately 69% of our operating revenues from advertising. Changes in the demand for such services, both nationally and in individual markets, can affect operating results. Use of Estimates — Preparing financial statements in accordance with accounting principles generally accepted in the United States of America requires us to make a variety of decisions that affect the reported amounts and the related disclosures. Such decisions include the selection of accounting principles that reflect the economic substance of the underlying transactions and the assumptions on which to base accounting estimates. In reaching such decisions, we apply judgment based on our understanding and analysis of the relevant circumstances, including our historical experience, actuarial studies and other assumptions. Our financial statements include estimates and assumptions used in accounting for our defined benefit pension plans; the periods over which long-lived assets are depreciated or amortized; the fair value of long-lived assets, goodwill and indefinite lived assets; the liability for uncertain tax positions and valuation allowances against deferred income tax assets; the fair value of assets acquired and liabilities assumed in business combinations; and self-insured risks. While we re-evaluate our estimates and assumptions on an ongoing basis, actual results could differ from those estimated at the time of preparation of the financial statements. Consolidation — The consolidated financial statements include the accounts of The E.W. Scripps Company and its majority-owned subsidiary companies. Investments in 20%-to-50%-owned companies where we exert significant influence and all 50%-or-less-owned partnerships and limited liability companies are accounted for using the equity method. We do not hold any interests in variable interest entities. All significant intercompany transactions have been eliminated. Nature of Products and Services — The following is a description of principal activities from which we generate revenue. Core Advertising — Core advertising is comprised of sales to local and national customers. The advertising includes a combination of broadcast air time, as well as digital advertising. Pricing of advertising time is based on audience size and share, the demographic of our audiences and the demand for our limited inventory of commercial time. Advertising time is sold through a combination of local sales staff and national sales representative firms. Digital revenues are primarily generated from the sale of advertising to local and national customers on our local television websites, smartphone apps, tablet apps and other platforms. Political Advertising — Political advertising is generally sold through our Washington D.C. sales office. Advertising is sold to presidential, gubernatorial, Senate and House of Representative candidates, as well as for state and local issues. It is also sold to political action groups (PACs) or other advocacy groups. Retransmission Revenues — We earn revenue from retransmission consent agreements with multi-channel video programming distributors (“MVPDs”) in our markets. The MVPDs are cable operators and satellite carriers who pay us to offer our programming to their customers. We also receive fees from over-the-top virtual MVPDs such as YouTubeTV, DirectTV Now and Sony Vue. The fees we receive are typically based on the number of subscribers in our local market and the contracted rate per subscriber. Other Products and Services — We derive revenue from sponsorships and community events through our Local Media segment. Our National Media segment offers subscription services for access to premium content to its customers. Our Triton business earns revenue from monthly fees charged to audio publishers for converting their content into digital audio streams and inserting digital advertising into those audio streams and providing statistical measurement information about their listening audience. Our podcast business acts as a sales and marketing representative and earns commission for its work. Refer to Note 15. Segment Information for further information, including revenue by significant product and service offering. Revenue Recognition — Revenue is measured based on the consideration we expect to be entitled to in exchange for promised goods or services provided to customers, and excludes any amounts collected on behalf of third parties. Revenue is recognized upon transfer of control of promised products or services to customers. Advertising — Advertising revenue is recognized, net of agency commissions, over time primarily as ads are aired or impressions are delivered and any contracted audience guarantees are met. We apply the practical expedient to recognize revenue at the amount we have the right to invoice, which corresponds directly to the value a customer has received relative to our performance. For advertising sold based on audience guarantees, audience deficiency may result in an obligation to deliver additional advertisements to the customer. To the extent that we do not satisfy contracted audience ratings, we record deferred revenue until such time that the audience guarantee has been satisfied. Retransmission — Retransmission revenues are considered licenses of functional intellectual property and are recognized at the point in time the content is transferred to the customer. MVPDs report their subscriber numbers to us generally on a 30- to 90-day lag. Prior to receiving the MVPD reporting, we record revenue based on estimates of the number of subscribers, utilizing historical levels and trends of subscribers for each MVPD. Other —Revenues generated by our Triton business are recognized on a ratable basis over the contract term as the monthly service is provided to the customer. Refer to Note 2. Recently Adopted and Issued Accounting Standards for further information on the adoption of the new revenue recognition standard. Transaction Price Allocated to Remaining Performance Obligations — As of December 31, 2018, we had an aggregate transaction price of $68.9 million allocated to unsatisfied performance obligations related to contracts within our Triton business. We expect to recognize revenue on 92% of these remaining performance obligations over the next 24 months and the remainder thereafter. We did not disclose the value of unsatisfied performance obligations on any other contracts with customers because they are either (i) contracts with an original expected term of one year or less, (ii) contracts for which the sales- or usage-based royalty exception was applied, or (iii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Cash Equivalents — Cash equivalents represent highly liquid investments with maturity of less than three months when acquired. Contract Balances — Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized subsequent to invoicing. We extend credit to customers based upon our assessment of the customer’s financial condition. Collateral is generally not required from customers. Payment terms may vary by contract type, although our terms generally include a requirement of payment within 30 to 90 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience and other currently available evidence. A rollforward of the allowance for doubtful accounts is as follows:
We record unearned revenue when cash payments are received in advance of our performance. We generally require amounts payable under advertising contracts with political advertising customers to be paid in advance. Unearned revenue totaled $11.5 million at December 31, 2018 and is expected to be recognized within revenue over the next 12 months. Unearned revenue totaled $7.4 million at December 31, 2017. Assets Recognized from the Costs to Obtain a Contract with a Customer— We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We apply and use the practical expedient in the revenue guidance to expense costs as incurred for costs to obtain a contract when the amortization period is one year or less. This expedient applies to advertising sales commissions since advertising contracts are short-term in nature. In addition, we also may provide inducement payments to secure carriage agreements with distributors of our content. These inducement payments are capitalized and amortized to expense over the term of the distribution contract. Capitalized costs to obtain a contract with a customer totaled $9.7 million at December 31, 2018 and $8.0 million at December 31, 2017 and are included within miscellaneous assets on our Consolidated Balance Sheets. Amortization of these costs totaled $1.0 million in 2018. Investments — From time to time, we make investments in private companies. Investment securities can be impacted by various market risks, including interest rate risk, credit risk and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term. Such changes could materially affect the amounts reported in our financial statements. We record investments in private companies not accounted for under the equity method at cost, net of impairment write-downs, because no readily determinable market price is available. We regularly review our investments to determine if there has been any other-than-temporary decline in value. These reviews require management judgments that often include estimating the outcome of future events and determining whether factors exist that indicate impairment has occurred. We evaluate, among other factors, the extent to which cost exceeds fair value; the duration of the decline in fair value below cost; and the current cash position, earnings and cash forecasts and near-term prospects of the investee. We reduce the cost basis when a decline in fair value below cost is determined to be other than temporary, with the resulting adjustment charged against earnings. Property and Equipment — Property and equipment is carried at cost less depreciation. We compute depreciation using the straight-line method over estimated useful lives as follows:
Programming — Programming includes the cost of national television network programming, programming produced by us or for us by independent production companies and programs licensed under agreements with independent producers. Our network affiliation agreements require the payment of affiliation fees to the network. Network affiliation fees consist of pre-determined fixed fees in all cases and variable payments based on a share of retransmission revenues above the fixed fees for some of our agreements. Program licenses principally consist of television series and films. Program licenses generally have fixed terms, limit the number of times we can air the programs and require payments over the terms of the licenses. We record licensed program assets and liabilities when the license period has commenced and the programs are available for broadcast. We do not discount program licenses for imputed interest. We amortize program licenses based upon expected cash flows over the term of the license agreement or on a straight-line basis. We classify the portion of the unamortized balance expected to be amortized within one year as a current asset. The costs of programming produced by us or for us by independent production companies is charged to expense over estimated useful lives based upon expected future cash flows. Internal costs, including employee compensation and benefits, to produce daily or live broadcast shows, such as news, sports or daily magazine shows, are expensed as incurred and are not classified in our Consolidated Statements of Operations as program costs, but are classified based on the type of cost incurred. Progress payments on programs not yet available for broadcast are recorded as deposits within programming assets. We review the net realizable value of program assets for impairment using a day-part methodology if the programming is for our local broadcast stations, whereby programs broadcast during a particular time period, such as prime time, are evaluated on an aggregate basis. Programming for our over-the-air broadcast network is reviewed for impairment using the individual network methodology. For our program assets available for broadcast, estimated amortization for each of the next five years is $45.3 million in 2019, $29.3 million in 2020, $19.9 million in 2021, $7.4 million in 2022, $1.0 million in 2023 and $0.2 million thereafter. Actual amortization in each of the next five years will exceed the amounts currently recorded as program assets available for broadcast, as we will continue to produce and license additional programs. Program rights liabilities payable within the next twelve months are included as current liabilities and noncurrent program rights liabilities are included in other noncurrent liabilities. FCC Repack — In April 2017, the Federal Communications Commission (the “FCC”) began a process of reallocating the broadcast spectrum (the “repack”). Specifically, the FCC is requiring certain television stations to change channels and/or modify their transmission facilities. The U.S. Congress passed legislation which provides the FCC with a fund to reimburse all reasonable costs incurred by stations operating under a full power license and a portion of the costs incurred by stations operating under a low power license that are reassigned to new channels. We record a FCC repack receivable for the amount of reimbursable costs due from the FCC, which totaled $19.2 million at December 31, 2018. The total amount of consideration currently due or that has been collected from the FCC is recorded as a deferred liability and will be recognized against depreciation expense in the same manner that the underlying FCC repack fixed assets are depreciated. Deferred FCC repack income totaled $20.6 million at December 31, 2018. Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill represents the cost of acquisitions in excess of the acquired businesses’ tangible assets and identifiable intangible assets. FCC licenses represent the value assigned to the broadcast licenses of acquired broadcast television stations. Broadcast television stations are subject to the jurisdiction of the Federal Communications Commission (“FCC”) which prohibits the operation of stations except in accordance with an FCC license. FCC licenses stipulate each station’s operating parameters as defined by channels, effective radiated power and antenna height. FCC licenses are granted for a term of up to eight years, and are renewable upon request. We have never had a renewal request denied and all previous renewals have been for the maximum term. We do not amortize goodwill or our FCC licenses, but we review them for impairment at least annually or any time events occur or conditions change that would indicate it is more likely than not the fair value of a reporting unit is below its carrying value. We perform our annual impairment review during the fourth quarter of each year in conjunction with our annual planning cycle. We also assess, at least annually, whether our FCC licenses, classified as indefinite-lived intangible assets, continue to have indefinite lives. We review goodwill for impairment based upon our reporting units, which are defined as operating segments or groupings of businesses one level below the operating segment level. Reporting units with similar economic characteristics are aggregated into a single unit when testing goodwill for impairment. Our reporting units are our Local Media group, Katz, Stitcher, Triton and Newsy. Amortizable Intangible Assets — Television network affiliations represents the value assigned to an acquired broadcast television station’s relationship with a national television network. Television stations affiliated with national television networks typically have greater profit margins than independent television stations, primarily due to audience recognition of the television station as a network affiliate. We amortize these network affiliation relationships on a straight-line basis over estimated useful lives of 20 years. We amortize customer lists and other intangible assets in relation to their expected future cash flows over estimated useful lives of up to 20 years. Impairment of Long-Lived Assets — We review long-lived assets (primarily property and equipment and amortizable intangible assets) for impairment whenever events or circumstances indicate the carrying amounts of the assets may not be recoverable. Recoverability is determined by comparing the aggregate forecasted undiscounted cash flows derived from the operation of the assets to the carrying amount of the assets. If the aggregate undiscounted cash flow is less than the carrying amount of the assets, then amortizable intangible assets are written down first, followed by other long-lived assets, to fair value. We determine fair value based on discounted cash flows or appraisals. We report long-lived assets to be disposed of at the lower of carrying amount or fair value less costs to sell. Self-Insured Risks — We are self-insured, up to certain limits, for general and automobile liability, employee health, disability and workers’ compensation claims and certain other risks. Estimated liabilities for unpaid claims totaled $9.8 million at December 31, 2018 and 2017. We estimate liabilities for unpaid claims using actuarial methodologies and our historical claims experience. While we re-evaluate our assumptions and review our claims experience on an ongoing basis, actual claims paid could vary significantly from estimated claims, which would require adjustments to expense. Based on the terms of the Master Transaction Agreement with Journal Media Group ("Journal"), Scripps remains the primary obligor for newspaper insurance claims incurred prior to April 1, 2015. We recorded the liabilities related to these claims on our Consolidated Balance Sheets with an offsetting receivable of $1.7 million, which will be paid by Journal. Income Taxes — We recognize deferred income taxes for temporary differences between the tax basis and reported amounts of assets and liabilities that will result in taxable or deductible amounts in future years. We establish a valuation allowance if we believe that it is more likely than not that we will not realize some or all of the deferred tax assets. We record a liability for unrecognized tax benefits resulting from uncertain tax positions taken or that we expect to take in a tax return. Interest and penalties associated with such tax positions are included in the tax provision. The liability for additional taxes and interest is included in other liabilities in the Consolidated Balance Sheets. Risk Management Contracts — We do not hold derivative financial instruments for trading or speculative purposes and we do not hold leveraged contracts. From time to time, we may use derivative financial instruments to limit the impact of interest rate fluctuations on our earnings and cash flows. Stock-Based Compensation — We have a Long-Term Incentive Plan (the “Plan”) which is described more fully in Note 17. The Plan provides for the award of incentive and nonqualified stock options, stock appreciation rights, restricted stock units (RSUs) and unrestricted Class A Common shares and performance units to key employees and non-employee directors. We recognize compensation cost based on the grant-date fair value of the award. We determine the fair value of awards that grant the employee the underlying shares by the fair value of a Class A Common share on the date of the award. Certain awards of RSUs have performance conditions under which the number of shares granted is determined by the extent to which such performance conditions are met (“Performance Shares”). Compensation costs for such awards are measured by the grant-date fair value of a Class A Common share and the number of shares earned. In periods prior to completion of the performance period, compensation costs are based upon estimates of the number of shares that will be earned. Compensation costs are recognized on a straight-line basis over the requisite service period of the award. The impact of forfeitures is recognized as they occur. The requisite service period is generally the vesting period stated in the award. Grants to retirement-eligible employees are expensed immediately and grants to employees who will become retirement eligible prior to the end of the stated vesting period are expensed over such shorter period because stock compensation grants vest upon the retirement of the employee. Earnings Per Share (“EPS”) — Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our RSUs, are considered participating securities for purposes of calculating EPS. Under the two-class method, we allocate a portion of net income to these participating securities and therefore exclude that income from the calculation of EPS for common stock. We do not allocate losses to the participating securities. The following table presents information about basic and diluted weighted-average shares outstanding:
For the year ended December 31, 2017, we incurred a net loss and the inclusion of RSUs and stock options would have been anti-dilutive, and accordingly the diluted EPS calculation for the period excludes those common share equivalents. |
Recently Adopted Standards and Issued Accounting Standards |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recently Adopted Standards and Issued Accounting Standards | Recently Adopted and Issued Accounting Standards Recently Adopted Accounting Standards — In August 2016, the Financial Accounting Standards Board ("FASB") issued new guidance related to classification of certain cash receipts and payments in the statement of cash flows. This new guidance was issued with the objective of reducing diversity in practice around eight specific types of cash flows. The new guidance was effective for us January 1, 2018 and did not have an impact on our Consolidated Statements of Cash Flows. In January 2016, the FASB issued new guidance on the recognition and measurement of financial instruments. This guidance primarily affects the accounting for equity method investments, financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The new standard was effective for us on January 1, 2018 and did not have an impact on our consolidated financial statements. In May 2014, the FASB issued a new standard related to revenue recognition. Under this standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. The standard creates a five-step process that requires entities to exercise judgment when considering the terms of the contract(s) and all relevant facts and circumstances. In addition, the standard requires expanded footnote disclosure. We adopted this standard on January 1, 2018, using the full retrospective method. Regarding our advertising contracts, which comprised 69% of 2018 operating revenues, the contracts are short-term in nature with transaction price consideration agreed upon in advance. Revenue on broadcast advertising spots continues to be recognized when commercials are aired. Online advertising revenue earned through the display of digital advertisements across various digital platforms typically takes the form of an impression-based contract, fixed fee time-based contract or transaction-based contract. Revenue continues to be recognized evenly over the contract term for fixed fee contracts where a minimum number of impressions or click-throughs is not guaranteed. Revenue is recognized as the service is delivered for impression and transaction-based contracts. Retransmission revenue, which comprised 25% of 2018 operating revenues, is recognized under the licensing of intellectual property guidance in the standard, which did not result in a change to our previous revenue recognition. The only identified impacts of the standard were to record certain revenue transactions on a gross basis that were previously recorded on a net basis and to no longer recognize barter revenue and expense related to syndicated programming. Adoption of this standard on January 1, 2018 using the full retrospective method required us to adjust certain previously reported results. The following tables present the impact of adoption of the standard on our Consolidated Statements of Operations:
Adoption of the new revenue recognition standard had no impact on our Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income (Loss), Consolidated Statements of Cash Flows or Consolidated Statements of Equity. In March 2017, the FASB issued new guidance on the presentation of net periodic benefit cost in the statement of operations. It requires entities to disaggregate the current service cost component from the other components of net benefit cost. The service cost is presented with other current compensation costs in the statement of operations, while the other components are presented outside of operating income. We elected to retrospectively adopt this guidance as of January 1, 2017. We do not have any service cost associated with our net periodic benefit cost, as such, the impact of adopting this new guidance was to reclassify our defined benefit pension plan expense out of operating costs and expenses and to classify it as a non-operating expense below operating income. In March 2016, the FASB issued new guidance which simplifies the accounting for share-based compensation arrangements, including the related income tax consequences and classification in the statement of cash flows. We elected to adopt this guidance effective January 1, 2016. The adoption used the modified retrospective transition method which had no impact on prior years. The impact of adopting this guidance was to record $14.7 million of previously unrecognized tax benefits, increasing deferred tax assets and retained earnings as of December 31, 2015. In February 2018, the FASB issued new guidance that permits companies to reclassify the disproportionate tax effect in accumulated other comprehensive income ("AOCI") caused by the Tax Cuts and Jobs Act of 2017. We have adopted this guidance as of December 31, 2017. The impact of the adoption was to reclassify $19.4 million of tax effects related to our defined benefits plans from AOCI to retained earnings. Recently Issued Accounting Standards — In August 2018, the FASB issued new guidance to address a customer's accounting for implementation costs incurred in a cloud computing arrangement ("CCA") that is a service contract. The new guidance aligns the accounting for costs incurred to implement a CCA that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements, as well as the timing of adoption. In August 2018, the FASB issued new guidance to add, remove and clarify annual disclosure requirements related to defined benefit pension and other postretirement plans. The guidance is effective for fiscal years ending after December 15, 2020 with early adoption permitted, and it should be applied on a retrospective basis. We believe the main impact of this guidance will be to no longer disclose the amount in accumulated other comprehensive income that is expected to be recognized as part of net periodic benefit cost over the next year. Additionally, we will have to add a narrative description for any significant gains and losses affecting the benefit obligation for the period. We are currently evaluating the impact of this guidance on our disclosures as well as the timing of adoption. In June 2016, the FASB issued new guidance that changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model, which generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. The guidance is effective in 2020 with early adoption permitted in 2019. We are currently evaluating the impact of this guidance on our consolidated financial statements, as well as the timing of adoption. In February 2016, the FASB issued new guidance on the accounting for leases. Under this guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. In July 2018, the FASB approved amendments to create an optional transition method. The amendments provide an option to implement the new leasing standard through a cumulative-effect adjustment in the period of adoption without having to restate the comparative periods presented. We will adopt the standard in the first quarter of 2019 and elect this transition method to apply the standard prospectively. Implementation of the standard will result in the recognition of additional right-of-use assets and lease liabilities for operating leases of approximately $50 million as of January 1, 2019. |
Acquisitions |
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Acquisitions | Acquisitions Triton On November 30, 2018, we acquired Triton Digital Canada, Inc. ("Triton") for total cash consideration of $160 million. Assets acquired in the transaction included approximately $10.5 million of cash. The transaction was funded with cash on hand at time of closing. Triton is a leading global digital audio infrastructure and audience measurement services company. Triton’s infrastructure and ad-serving solutions deliver live and on-demand audio streams and insert advertisements into those streams. Triton’s data and measurement service is recognized as the currency by which publishers sell digital audio advertising. From the acquisition date of November 30, 2018 through December 31, 2018, revenues from the Triton operations were $3.3 million. The following table summarizes the preliminary fair values of the Triton assets acquired and liabilities assumed at the closing date.
Of the $75 million allocated to intangible assets, $39 million was assigned to various developed technologies for audience measurement, content delivery and advertising with lives ranging from 8-12 years, $31 million was assigned to customer relationships with a life of 12 years and $5 million was assigned to trade names with a life of 10 years. The goodwill of $84 million arises from being able to capitalize on the growth of the streaming audio industry and further improve our position in the global digital audio marketplace. The goodwill is allocated to our National Media segment. The transaction is accounted for as a stock acquisition which applies carryover tax basis to the assets and liabilities acquired. The goodwill is not deductible for income tax purposes. Katz On October 2, 2017 we acquired the Katz networks for $292 million, which is net of a 5.33% non-controlling interest we owned prior to the acquisition date. Katz owns and operates four national television networks — Bounce, Grit, Escape and Laff. The acquisition was funded through the issuance of a new term loan B. Katz is included as part of our National Media segment. The following table summarizes the final fair values of the Katz assets acquired and liabilities assumed at the closing date.
The acquisition date fair value of goodwill was revised in 2018. Goodwill was decreased by $5.8 million. Adjustments to increase the fair value of property and equipment by $9.9 million were partially offset by adjustments to decrease the fair value of program assets by $4.1 million. Additionally, these changes to the acquired value of assets in 2018 resulted in an increase to previously reported depreciation expense of $0.3 million and a decrease to previously reported programming costs of $0.3 million. Of the $32 million allocated to intangible assets, $8 million was assigned to trade names with a life of 10 years and $24 million was assigned to advertiser relationships with a life of 5 years. The goodwill of $204 million arises from being able to enter into the market for established over-the-air networks. The goodwill was allocated to our National Media segment. We treated the transaction as an asset acquisition for income tax purposes with a step-up in the assets acquired. The goodwill is deductible for income tax purposes. Prior to the acquisition of Katz, we owned a 5.33% noncontrolling interest of the company. Upon obtaining a controlling interest in Katz, we recorded a $5.4 million gain from the fair value remeasurement of our 5.33% interest. This gain is included in Miscellaneous, net in our Consolidated Statements of Operations. Stitcher On June 6, 2016, we completed the acquisition of Stitcher for a cash purchase price of $4.5 million. Stitcher is a popular podcast listening service which facilitates discovery and streaming for more than 65,000 podcasts. Stitcher now operates as part of Midroll Media, which significantly broadens Midroll's consumer base and technological capabilities. Of the $4.5 million purchase price, $2.9 million was allocated to intangible assets, the majority of which was technological software with an estimated amortization period of 3 years. The remainder of the purchase price was allocated to goodwill. Cracked On April 12, 2016, we acquired the multi-platform humor and satire brand Cracked, which informs and entertains millennial audiences with a website, social media and a popular podcast. The purchase price was $39 million in cash. The final fair values of the assets acquired were $9.6 million of intangible assets and $29.4 million of goodwill. Of the $9.6 million allocated to intangible assets, $7.6 million was for trade names with an estimated amortization period of 20 years. The remaining balance of $2.0 million was allocated to content library with an estimated amortization period of 3 years. The goodwill of $29 million arising from the transaction consists largely of the benefit we derive from being able to expand our presence and digital brands on the web, in over-the-top video and audio and on other emerging platforms. We allocated the goodwill to our National Media segment. We treated the transaction as an asset acquisition for income tax purposes with a step-up in the assets acquired. The goodwill is deductible for income tax purposes. Pro forma results of operations Pro forma results of operations are presented in the following table. For 2017 and 2016, the results assume that the Katz acquisition had taken place at the beginning of 2016. The pro forma results do not include Triton, Cracked or Stitcher as the impact of these acquisitions, individually or in the aggregate, is not material to prior year results of operations. The pro forma information includes the historical results of operations of Scripps and Katz, as well as adjustments for additional depreciation and amortization of the assets acquired and additional interest expense related to the financing of the transaction. The pro forma information does not include efficiencies, cost reductions or synergies expected to result from the acquisition. The unaudited pro forma financial information is not necessarily indicative of the results that actually would have occurred had the acquisition been completed at the beginning of the period.
Pending Acquisitions On August 20, 2018, we entered into a definitive agreement to acquire television stations owned by Raycom Media — Waco, Texas ABC affiliate KXXV/KRHD and Tallahassee, Florida ABC affiliate WTXL — for $55 million. These stations were being divested as part of Gray Television's acquisition of Raycom Media. The purchase was subject to regulatory approvals and customary closing conditions and closed effective as of January 1, 2019. This transaction was funded with cash on hand at time of closing. On October 27, 2018, we entered into a definitive agreement with Cordillera Communications, LLC to acquire 15 television stations, serving 10 markets, for $521 million in cash. The transaction has been cleared by the U.S. Department of Justice and is expected to close early in the second quarter of 2019, pending FCC consent. We have obtained underwriting for financing the acquisition with incremental term loan B borrowings. |
Asset Write-Downs and Other Charges and Credits |
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Asset Write-Downs and Other Charges and Credits [Abstract] | |
Asset Write-Downs and Other Charges and Credits | Asset Write-Downs and Other Charges and Credits Income (loss) from continuing operations before income taxes was affected by the following: 2018 - Costs associated with our previously announced restructuring totaled $8.9 million. Acquisition and related integration costs of $4.1 million reflect professional service costs incurred to integrate Triton and the former Raycom stations, as well as costs incurred for the pending Cordillera acquisition. In the fourth quarter of 2018, we incurred a non-cash impairment charge of $8.9 million related to our original programming show, Pickler & Ben, which will not be renewed for a third season. 2017 — In the second quarter, we sold our newspaper syndication business, resulting in a gain of $3.0 million. Restructuring includes $3.5 million of severance associated with a change in senior management and employees, as well as outside consulting fees associated with changes in our management and operating structure. Reductions to the earn out provision associated with the acquisition of Midroll Media resulted in increases to other income of $3.2 million. In the third quarter of 2017, we recorded a $29.4 million non-cash charge to reduce the carrying value of goodwill and $6.3 million to reduce the value of intangible assets related to Cracked. For more information around the impairment of goodwill and intangible assets, see Note 9. We recognized a $5.4 million gain on our investment in Katz when we completed the acquisition in the fourth quarter. 2016 — Acquisition and related integration costs of $0.6 million include costs for spinning off our newspaper operations and costs associated with acquisitions, such as legal and accounting fees, as well as costs to integrate acquired operations. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes We file a consolidated federal income tax return, consolidated unitary returns in certain states, other separate state income tax returns for certain of our subsidiary companies, and applicable foreign returns. The provision for income taxes from continuing operations consisted of the following:
The difference between the statutory rate for federal income tax and the effective income tax rate was as follows:
The approximate effect of the temporary differences giving rise to deferred income tax assets (liabilities) were as follows:
Total federal operating loss carryforwards were $1 million and state operating loss carryforwards were $255 million at December 31, 2018. Our state tax loss carryforwards expire through 2038. Because we file separate state income tax returns for certain of our subsidiary companies, we are not able to use state tax losses of a subsidiary company to offset state taxable income of another subsidiary company. Deferred tax assets related to our state jurisdictions totaled $9 million at December 31, 2018. We recognize state net operating loss carryforwards as deferred tax assets, subject to valuation allowances. At each balance sheet date, we estimate the amount of carryforwards that are not expected to be used prior to expiration of the carryforward period. The tax effect of the carryforwards that are not expected to be used prior to their expiration is included in the valuation allowance. The Company has not provided for income taxes, including withholding tax, US state taxes, or tax on foreign exchange rate changes, associated with the undistributed earnings of our non-US subsidiaries because we plan to indefinitely reinvest the unremitted earnings in these entities. On December 22, 2017, the U.S. government enacted comprehensive tax legislation referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revised the future ongoing U.S. corporate income tax by, among other things, lowering U.S. corporate income tax rates. The reduction of the U.S. corporate tax rate caused the Company to adjust its federal deferred tax assets and liabilities to the lower base rate of 21%. The change in the rate resulted in a provisional estimated benefit of $4.2 million for the year ended December 31, 2017. This amount includes the benefit related to the rate change on the deferred tax liabilities included in the radio net assets that are classified as held for sale (see Note 21) as such benefit is required by GAAP to be included in income taxes from continuing operations. The SEC provided guidance in SAB 118 that would allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related income tax impacts. In accordance with that guidance, the income tax effects recorded in 2017 were provisional, including those related to our revaluation of federal deferred tax assets and liabilities. The accounting for the income tax effects could have been adjusted during 2018 as a result of continuing analysis of the Tax Act; additional implementation guidance from the Internal Revenue Service (IRS), state tax authorities, the SEC, the FASB, or the Joint Committee on Taxation. We had no material adjustments to our accounting for the Tax Act during 2018. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
The total amount of net unrecognized tax benefits that, if recognized, would affect the effective tax rate was $0.3 million at December 31, 2018. We accrue interest and penalties related to unrecognized tax benefits in our provision for income taxes. At December 31, 2018 and 2017, we had accrued interest related to unrecognized tax benefits of less than $0.1 million. We file income tax returns in the U.S. and in various state and local jurisdictions. We are routinely examined by tax authorities in these jurisdictions. At December 31, 2018, we are no longer subject to federal income tax examinations for years prior to 2015. For state and local jurisdictions, we are generally no longer subject to income tax examinations for years prior to 2014. In 2018, 2017 and 2016 we recognized $0.3 million, $1.1 million and $0.9 million, respectively, of previously unrecognized net tax benefits primarily due to the lapse of the statute of limitations in certain tax jurisdictions. Due to the potential for resolution of federal and state examinations, and the expiration of various statutes of limitation, it is reasonably possible that our gross unrecognized tax benefits balance may change within the next twelve months by as much as $0.1 million. |
Restricted Cash |
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Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash At December 31, 2018 and 2017, our cash and cash equivalents included $5.1 million held in a restricted cash account on deposit with our insurance carrier. This account serves as collateral, in place of an irrevocable stand-by letter of credit, to provide financial assurance that we will fulfill our obligations with respect to cash requirements associated with our workers' compensation self-insurance. This cash is to remain on deposit with the carrier until all claims have been paid or we provide a letter of credit in lieu of the cash deposit. |
Investments |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Investments consisted of the following:
Our investments do not trade in public markets, thus they do not have readily determinable fair values. We estimate the fair values of the investments to approximate their carrying values at December 31, 2018 and 2017. |
Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment consisted of the following:
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill by business segment was as follows:
Other intangible assets consisted of the following:
In 2018 and 2017, we recognized other intangible assets of $5.8 million and $9.7 million, respectively, related to the acquisition of cable and satellite carriage rights for the launch of our Newsy cable network. These rights are amortized over the life of the respective carriage agreement. Estimated amortization expense of intangible assets for each of the next five years is $34.3 million in 2019, $33.1 million in 2020, $30.7 million in 2021, $27.6 million in 2022, $22.6 million in 2023 and $173.4 million in later years. Goodwill and indefinite-lived intangible assets are tested for impairment annually and any time events occur or conditions change that would indicate it is more likely than not the fair value of a reporting unit is below its carrying value. Such indicators of impairment include, but are not limited to, changes in business climate or other factors resulting in low cash flow related to such assets. If the fair value is less than the carrying value of the reporting unit then an impairment of goodwill exists and an impairment charge is recorded for the difference between the carrying value of the reporting unit and its estimated fair value, not to exceed the carrying value of the goodwill. The slower development of our original operating model created indications of impairment of goodwill as of September 30, 2017 for Cracked. Under the process required by GAAP, we estimated the fair value of Cracked. The fair value was determined using a combination of discounted cash flow approach, which estimated fair value based upon future revenues, expenses and cash flows discounted to their present value, and a market approach, which estimated fair value using market multiples of various financial measures compared to a set of comparable public companies. The discounted cash flow approach utilized unobservable factors, such as projected revenues and expenses and a discount rate applied to the estimated cash flows. The determination of the discount rate was based on a cost of capital model, using a risk-free rate, adjusted by a stock-beta adjusted risk premium and a size premium. The inputs to the nonrecurring fair value determination of our reporting units are classified as Level 3 fair value measurements under GAAP. The valuation methodology and underlying financial information used to determine fair value requires significant judgments to be made by management. These judgments include, but are not limited to, long-term projections of future financial performance and the selection of appropriate discount rates used to determine the present value of future cash flows. Changes in such estimates or the application of alternative assumptions could produce significantly different results. We concluded that the fair value of Cracked did not exceed its carrying value as of September 30, 2017. Based upon our valuations, we recorded a $29.4 million non-cash impairment charge in 2017 to reduce the carrying value of goodwill and $6.3 million to reduce the value of intangible assets. |
Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following:
* Fair value of the Senior Notes and the term loan B were estimated based on quoted private market transactions and are classified as Level 1 in the fair value hierarchy. The fair value of the unsecured subordinated notes is determined based on a discounted cash flow analysis using current market interest rates of comparable instruments and is classified as Level 2 in the fair value hierarchy. Senior Unsecured Notes On April 28, 2017, we issued $400 million of senior unsecured notes (the "Senior Notes"), which bear interest at a rate of 5.125% per annum and mature on May 15, 2025. The proceeds of the Senior Notes were used to repay our old term loan B, for the payment of the related issuance costs and for general corporate purposes. The Senior Notes were priced at 100% of par value and interest is payable semi-annually on May 15 and November 15. Prior to May 15, 2020, we may redeem the Senior Notes, in whole or in part, at any time, or from time to time, at a price equal to 100% of the principal amount of the Senior Notes, plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium, as set forth in the Senior Notes indenture. In addition, on or prior to May 15, 2020, we may redeem up to 40% of the Senior Notes, using proceeds of equity offerings. If we sell certain of our assets or have a change of control, the holders of the Senior Notes may require us to repurchase some or all of the notes. The Senior Notes are also guaranteed by us and the majority our subsidiaries. The Senior Notes contain covenants with which we must comply that are typical for borrowing transactions of this nature. We incurred approximately $7.0 million of deferred financing costs in connection with the issuance of the Senior Notes, which are being amortized over the life of the Senior Notes. Additionally, we wrote off $2.4 million of deferred financing costs associated with our old term loan B to interest expense in the second quarter of 2017. Term Loan B On October 2, 2017, we issued a $300 million term loan B which matures in October 2024. We amended term loan B on April 4, 2018, reducing the interest rate by 25 basis points. Following the amendment, interest is payable on the term loan B at a rate based on LIBOR, plus a fixed margin of 2.00%. Interest will reduce to a rate of LIBOR plus a fixed margin of 1.75% if the company's total net leverage, as defined by the amended agreement, is below 2.75. Term loan B requires annual principal payments of $3 million. Our Financing Agreement also includes a provision that in certain circumstances we must use a portion of excess cash flow to repay debt. Principal payments included in the contractual obligations table reflect only scheduled principal payments and do not reflect any amounts that may be required to be paid under this provision. As of December 31, 2018, we were not required to make any additional principal payments for excess cash flow. Under a previous financing agreement, we had a $400 million term loan B that matured in November 2020. We repaid the term loan B in 2017 with the proceeds of our Senior Notes. As of December 31, 2018 and 2017, the interest rate was 4.34% and 3.82%, respectively on the term loan B. The weighted-average interest rate was 4.30% and 3.42% in 2018 and 2017, respectively. Revolving Credit Facility On April 28, 2017, we amended and restated our $100 million revolving credit facility ("Revolving Credit Facility"), increasing its capacity to $125 million and extending the maturity to April 2022. Interest is payable on the Revolving Credit Facility at rates based on LIBOR, plus a margin based on our leverage ratio, ranging from 1.75% to 2.50%. The Revolving Credit Facility includes the maintenance of a net leverage ratio when we have outstanding borrowings on the facility, as well as other restrictions on payments (dividends and share repurchases). Additionally, we can make acquisitions as long as the pro forma net leverage ratio is less than 5.5 to 1.0. We granted the lenders pledges of our equity interests in our subsidiaries and security interests in substantially all other personal property including cash, accounts receivables and equipment. Commitment fees of 0.30% to 0.50% per annum, based on our leverage ratio, of the total unused commitment are payable under the Revolving Credit Facility. Unsecured Subordinated Notes The unsecured subordinated promissory notes bore interest at a rate of 7.25% per annum, payable quarterly. The last principal payment of $2.7 million was paid in the third quarter of 2018. |
Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | Fair Value Measurement We measure certain financial assets and liabilities at fair value on a recurring basis, such as cash equivalents. The fair values of these financial assets were determined based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. These levels of input are as follows:
The following tables set forth our assets that are measured at fair value on a recurring basis at December 31, 2018 and 2017:
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Other Liabilities |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | Other Liabilities Other liabilities consisted of the following:
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table presents additional information about the change in certain working capital accounts:
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Employee Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans We sponsor noncontributory defined benefit pension plans and non-qualified Supplemental Executive Retirement Plans ("SERPs"). Both the defined benefit plans and the SERPs have frozen the accrual of future benefits. We sponsor a defined contribution plan covering substantially all non-union and certain union employees. We match a portion of employees' voluntary contributions to this plan. Other union-represented employees are covered by defined benefit pension plans jointly sponsored by us and the union, or by union-sponsored multi-employer plans. We use a December 31 measurement date for our retirement plans. Retirement plans expense is based on valuations as of the beginning of each year. The components of the expense consisted of the following:
In 2018, we recognized a $1.8 million non-cash settlement charge related to lump-sum distributions from our SERP. Settlement charges are recorded when total lump-sum distributions for a plan's year exceed the total projected service cost and interest cost for that plan year. In November of 2018, we merged $306 million of pension assets and $419 million of pension obligations from our Scripps Pension Plan ("SPP”) into the Journal Communications, Inc. Plan (“JCI Plan”) that we also sponsor. The SPP retained pension assets and pension obligations totaling $9 million. Following the merger, we terminated the SPP and purchased a single premium group annuity contract from an insurance company in the amount of $53.5 million for the terminating SPP participants and certain participants in the newly merged JCI Plan. Upon issuance of the group annuity contract, the insurance company assumed all investment risk associated with the assets that were delivered as the annuity contract premium and assumed the obligation to make future annuity payments to approximately 600 remaining retirees receiving pension benefits in the SPP and approximately 1,500 remaining retirees receiving pension benefits in the newly merged JCI Plan. There was no change to the pension benefits for any plan participants as a result of these transactions and the purchase of the group annuity contract was funded directly by assets of the SPP and JCI Plan. In the fourth quarter of 2018, we recognized a one-time non-cash settlement charge of $11.7 million in connection with these transactions. Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) were as follows:
In addition to the amounts summarized above, amortization of actuarial losses related to our SERPs recognized through other comprehensive income was $0.3 million in 2018 and $0.2 million in both 2017 and 2016, and settlement losses in 2018 totaled $1.8 million. We recognized an actuarial gain for our SERPs of $1.0 million in 2018 and losses of $2.5 million and $1.6 million in 2017 and 2016, respectively. Assumptions used in determining the annual retirement plans expense were as follows:
(1) Range presented for 2018 discount rate represents the rates used for various remeasurement periods during the year as well as differing rates used for Scripps Pension Plan and Journal Communications, Inc. Plan. (2) Ranges presented for long-term rate of return on plan assets for 2017 and 2016 represent the rates used for Scripps Pension Plan and Journal Communications, Inc. Plan. The discount rate used to determine our future pension obligations is based on a dedicated bond portfolio approach that includes securities rated Aa or better with maturities matching our expected benefit payments from the plans. The expected long-term rate of return on plan assets is based upon the weighted-average expected rate of return and capital market forecasts for each asset class employed. Changes in other key actuarial assumptions affect the determination of the benefit obligations as of the measurement date and the calculation of net periodic benefit costs in subsequent periods. Obligations and Funded Status — The defined benefit pension plan obligations and funded status are actuarially valued as of the end of each year. The following table presents information about our employee benefit plan assets and obligations:
In 2019, we expect to recognize amortization of accumulated other comprehensive loss into net periodic benefit costs of $2.5 million (including $0.2 million for our SERPs). Information for pension plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets was as follows:
Assumptions used to determine the defined benefit pension plans benefit obligations were as follows:
In 2019, we expect to contribute $1.2 million to fund SERP benefits and $18.6 million to fund our qualified defined benefit pension plans. Estimated future benefit payments expected to be paid from the plans for the next ten years are $31.0 million in 2019, $31.7 million in 2020, $32.6 million in 2021, $33.2 million in 2022, $33.9 million in 2023 and a total of $176.6 million for the five years ending 2028. Plan Assets and Investment Strategy Our long-term investment strategy for pension assets is to earn a rate of return over time that minimizes future contributions to the plan while reducing the volatility of pension assets relative to pension liabilities. The strategy reflects the fact that we have frozen the accrual of service credits under our plans which cover the majority of employees. We evaluate our asset allocation target ranges for equity, fixed income and other investments annually. We monitor actual asset allocations monthly and adjust as necessary. We control risk through diversification among multiple asset classes, managers and styles. Risk is further monitored at the manager and asset class level by evaluating performance against appropriate benchmarks. Information related to our pension plan asset allocations by asset category were as follows:
U.S. equity securities include common stocks of large, medium and small capitalization companies, which are predominantly U.S. based. Non-U.S. equity securities include companies domiciled outside of the U.S. and American depository receipts. Fixed-income securities include securities issued or guaranteed by the U.S. government, mortgage backed securities and corporate debt obligations. Other investments include real estate funds. Under our asset allocation strategy, approximately 45% of plan assets are invested in a portfolio of fixed income securities with a duration approximately that of the projected payment of benefit obligations. The remaining 55% of plan assets are invested in equity securities and other return-seeking assets. The expected long-term rate of return on plan assets is based primarily upon the target asset allocation for plan assets and capital markets forecasts for each asset class employed. The following table presents our plan assets as of December 31, 2018 and 2017:
Our investments are valued using net asset value as a practical expedient as allowed under U.S. GAAP and therefore are not valued using the fair value hierarchy. Equity securities-common/collective trust funds and fixed income-common/collective trust funds are comprised of shares or units in commingled funds that are not publicly traded. The underlying assets in these funds (equity securities and fixed income securities) are publicly traded on exchanges and price quotes for the assets held by these funds are readily available. Common/collective trust funds are typically valued at their net asset values that are calculated by the investment manager or sponsor of the fund and have daily or monthly liquidity. Real estate fund pertains to an investment in a real estate fund which invests in limited partnerships, limited liability corporations, real estate investment trusts, other funds and insurance company group annuity contracts. The valuations for these holdings are based on property appraisals using cash flow analysis and market transactions. The fund provides for quarterly redemptions with 110 days written notice. |
Segment Information |
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Segment Information | Segment Information We determine our business segments based upon our management and internal reporting structure, as well as the basis that our chief operating decision maker makes resource allocation decisions. We report our financial performance based on the following segments: Local Media, National Media, Other. Our Local Media segment includes our local broadcast stations and their related digital operations. It is comprised of fifteen ABC affiliates, five NBC affiliates, two FOX affiliates and two CBS affiliates. We also have two MyTV affiliates, one CW affiliate, two independent stations and four Azteca America Spanish-language affiliates. Our Local Media segment earns revenue primarily from the sale of advertising to local, national and political advertisers and retransmission fees received from cable operators, telecommunication companies and satellite carriers. We also receive retransmission fees from over-the-top virtual MVPDs such as YouTubeTV, DirectTV Now and Sony Vue. Our National Media segment includes our collection of national brands. Our national media brands include Katz, Stitcher and its advertising network Midroll Media (Midroll), Newsy, Triton and other national brands. These operations earn revenue primarily through the sale of advertising. 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. 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:
A disaggregation of the principal activities from which we generate revenue is as follows:
The following table presents additions to property and equipment by segment:
Total assets by segment for the years ended December 31 were as follows:
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Commitments and Contingencies |
12 Months Ended |
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Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Minimum payments on noncancelable leases at December 31, 2018 were: $11.2 million in 2019, $9.2 million in 2020, $6.5 million in 2021, $6.4 million in 2022, $11.4 million in 2023 and $15.3 million in later years. We expect our operating leases will be replaced with leases for similar facilities upon their expiration. Rental expense for cancelable and noncancelable leases was $15.5 million in 2018, $13.1 million in 2017 and $11.1 million in 2016. In the ordinary course of business, we enter into contractual commitments for network affiliation agreements, the acquisition of programming and for other purchase and service agreements. Minimum payments on such contractual commitments at December 31, 2018 were: $399.9 million in 2019, $400.5 million in 2020, $385.9 million in 2021, $182.3 million in 2022, $33.6 million in 2023, and $13.7 million in later years. We expect these contracts will be replaced with similar contracts upon their expiration. We are involved in litigation arising in the ordinary course of business, such as defamation actions and governmental proceedings primarily relating to renewal of broadcast licenses, none of which is expected to result in material loss. |
Capital Stock and Share Based Compensation Plans |
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Capital Stock and Share-Based Compensation Plans | Capital Stock and Share-Based Compensation Plans Capital Stock — We have two classes of common shares, Common Voting shares and Class A Common shares. The Class A Common shares are only entitled to vote on the election of the greater of three or one-third of the directors and other matters as required by Ohio law. Share Repurchase Plan — Shares may be repurchased from time to time at management's discretion. In November 2016, our Board of Directors authorized a share repurchase program of up to $100 million of our Class A Common shares. The authorization currently expires on March 1, 2020. Shares can be repurchased under the authorization via open market purchases or privately negotiated transactions, including accelerated stock repurchase transactions, block trades, or pursuant to trades intending to comply with Rule 10b5-1 of the Securities Exchange Act of 1934. As part of the share repurchase plan, the Company entered into an Accelerated Share Repurchase ("ASR") agreement with JP Morgan to repurchase $25 million of the Company's common stock. Under the ASR agreement, the Company paid $25 million to JP Morgan and received an initial delivery of 1.3 million shares in the third quarter of 2018, which represents 80% of the total shares the Company expects to receive based on the market price at the time of the initial delivery. The transaction was accounted for as an equity transaction. The par value of shares received was recorded as a reduction to common stock with the remainder recorded as a reduction to additional paid-in capital or retained earnings. Upon initial receipt of the shares, there was an immediate reduction in the weighted average common shares calculation for basic and diluted earnings per share. Upon final settlement of the ASR Agreement in February 2019, the Company received additional deliveries totaling 147,164 shares of its common stock based on a weighted average cost per share of $16.70 over the term of the ASR agreement. Excluding the shares repurchased under the ASR agreement, during 2018 we repurchased $7.3 million of shares at prices ranging from $13.29 to $17.86 per share. During 2017 and 2016, we repurchased $17.9 million of shares at prices ranging from $14.05 to $23.01 per share and $44.4 million of shares at prices ranging from $12.84 to $19.51 per share, respectively. As of December 31, 2018, we have $50.3 million outstanding under the current authorization. Incentive Plans — We have adopted The E.W. Scripps Company 2010 Long-Term Incentive Plan (the “Plan”) which terminates on February 15, 2020. The Plan permits the granting of incentive and nonqualified stock options, stock appreciation rights, restricted stock units (RSUs), restricted and unrestricted Class A Common shares and performance units to key employees and non-employee directors. We satisfy stock option exercises and vested stock awards with newly issued shares. As of December 31, 2018, approximately 3.0 million shares were available for future stock compensation awards. Stock Options — Stock options grant the recipient the right to purchase Class A Common shares at not less than 100% of the fair market value on the date the option is granted. We have not issued any new stock options since 2008. The following table summarizes our stock option activity:
The following table summarizes additional information about exercises of stock options:
Restricted Stock Units — Awards of restricted stock units (RSUs) generally require no payment by the employee. RSUs are converted into an equal number of Class A Common shares when vested. These awards generally vest over a three or four year period, conditioned upon the individual’s continued employment through that period. Awards vest immediately upon the retirement, death or disability of the employee or upon a change in control of Scripps or in the business in which the individual is employed. Unvested awards may be forfeited if employment is terminated for other reasons. Awards are nontransferable during the vesting period, but the awards are entitled to all the rights of an outstanding share, including receiving stock dividend equivalents. There are no post-vesting restrictions on awards granted to employees and non-employee directors. Long-term incentive compensation includes performance share awards. Performance share awards represent the right to receive an award of RSUs if certain performance measures are met. Each award specifies a target number of shares to be issued and the specific performance criteria that must be met. The number of shares that an employee receives may be less or more than the target number of shares depending on the extent to which the specified performance measures are met or exceeded. The following table summarizes our RSU activity:
The following table summarizes additional information about RSU vesting:
Share-based Compensation Costs Share-based compensation costs were as follows:
As of December 31, 2018, $10.1 million of total unrecognized compensation costs related to RSUs and performance shares is expected to be recognized over a weighted-average period of 1.5 years. |
Accumulated Other Comprehensive Loss (Notes) |
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Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Income (Loss) Changes in the accumulated other comprehensive income (loss) ("AOCI") balance by component consisted of the following for the respective years:
Amounts reclassified to net earnings for defined benefit pension items relate to the amortization of actuarial gains (losses) and settlement charges. These amounts are included within the defined benefit pension plan expense caption on our Consolidated Statements of Operations. See Note 14. Employee Benefit Plans for additional information. |
Summarized Quarterly Financial Information (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Quarterly Financial Information (Unaudited) | Summarized Quarterly Financial Information (Unaudited) Summarized quarterly financial information is as follows:
The sum of the quarterly net income (loss) per share amounts may not equal the reported annual amount because each amount is computed independently based upon the weighted-average number of shares outstanding for the period.
In the third quarter of 2017, we recorded a $29.4 million non-cash impairment charge to reduce the carrying value of goodwill and $6.3 million to reduce the value of intangible assets related to Cracked. For more information around the impairment of goodwill and intangible assets, see Note 9. The sum of the quarterly net income (loss) per share amounts may not equal the reported annual amount because each amount is computed independently based upon the weighted-average number of shares outstanding for the period. |
Noncontrolling Interest |
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Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Noncontrolling Interest A noncontrolling owner holds a 30% interest in our venture to develop, produce and air our lifestyle daytime talk show. In April 2017, on the formation of the venture, the noncontrolling owner made a $2.1 million non-cash contribution to the venture. The contribution included the rights to the show concept, contractual rights with the show's talent, as well as other pre-production items. |
Assets Held for Sale and Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Held for Sale and Discontinued Operations | Assets Held for Sale and Discontinued Operations Radio Divestiture In the fourth quarter of 2017, we began the process to divest our radio business. Our radio business consisted of 34 radio stations in eight markets. During the second and third quarters of 2018, we entered into definitive agreements to sell our radio stations. We closed on the sale of our Tulsa radio stations on October 1, 2018, closed on the sales of our Milwaukee, Knoxville, Omaha, Springfield and Wichita radio stations on November 1, 2018 and closed on the sales of our Boise and Tucson radio stations on December 12, 2018. We have reported its results as discontinued operations for all periods presented. Operating results of our radio operations included in discontinued operations were as follows:
Results of discontinued operations in 2018 and 2017 included $25.9 million and $8.0 million, respectively, of non-cash impairment charges to write-down the goodwill of our radio business to fair value. The income tax provision for discontinued operations was impacted by non-deductible charges of $30.9 million in 2018 and $8.0 million in 2017. We also entered into separate Local Marketing Agreements (“LMA”) with the acquirer of the Tulsa radio stations and the acquirer of the Wichita, Springfield, Omaha, and Knoxville radio stations. Under the terms of these agreements, the acquiring entities paid us a monthly LMA fee and also reimbursed us for certain station expenses, as defined in the agreements, in exchange for the right to program and sell advertising from the stations' inventory of broadcast time. The LMA with the acquirer of the Tulsa radio stations was effective from July 30, 2018 until the closing of the transaction. The other LMA was effective from September 1, 2018 until closing of the transactions. Discontinued operating revenues included LMA fees totaling $2.5 million for the year ended December 31, 2018. The following table presents a summary of the radio assets held for sale included in our Consolidated Balance Sheet as of December 31, 2017:
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Operations | Nature of Operations — We are a diverse media enterprise, serving audiences and businesses through a portfolio of local and national media brands. All of our media businesses provide content and advertising services via digital platforms, including the Internet, smartphones and tablets. Our media businesses are organized into the following reportable business segments: Local Media, National Media and Other. |
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Concentration Risks | Concentration Risks — Our operations are geographically dispersed and we have a diverse customer base. We believe bad debt losses resulting from default by a single customer, or defaults by customers in any depressed region or business sector, would not have a material effect on our financial position, results of operations or cash flows. We derive approximately 69% of our operating revenues from advertising. Changes in the demand for such services, both nationally and in individual markets, can affect operating results. |
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Use of Estimates | Use of Estimates — Preparing financial statements in accordance with accounting principles generally accepted in the United States of America requires us to make a variety of decisions that affect the reported amounts and the related disclosures. Such decisions include the selection of accounting principles that reflect the economic substance of the underlying transactions and the assumptions on which to base accounting estimates. In reaching such decisions, we apply judgment based on our understanding and analysis of the relevant circumstances, including our historical experience, actuarial studies and other assumptions. Our financial statements include estimates and assumptions used in accounting for our defined benefit pension plans; the periods over which long-lived assets are depreciated or amortized; the fair value of long-lived assets, goodwill and indefinite lived assets; the liability for uncertain tax positions and valuation allowances against deferred income tax assets; the fair value of assets acquired and liabilities assumed in business combinations; and self-insured risks. While we re-evaluate our estimates and assumptions on an ongoing basis, actual results could differ from those estimated at the time of preparation of the financial statements. |
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Consolidation | Consolidation — The consolidated financial statements include the accounts of The E.W. Scripps Company and its majority-owned subsidiary companies. Investments in 20%-to-50%-owned companies where we exert significant influence and all 50%-or-less-owned partnerships and limited liability companies are accounted for using the equity method. We do not hold any interests in variable interest entities. All significant intercompany transactions have been eliminated. |
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Nature of Products and Services | Nature of Products and Services — The following is a description of principal activities from which we generate revenue. Core Advertising — Core advertising is comprised of sales to local and national customers. The advertising includes a combination of broadcast air time, as well as digital advertising. Pricing of advertising time is based on audience size and share, the demographic of our audiences and the demand for our limited inventory of commercial time. Advertising time is sold through a combination of local sales staff and national sales representative firms. Digital revenues are primarily generated from the sale of advertising to local and national customers on our local television websites, smartphone apps, tablet apps and other platforms. Political Advertising — Political advertising is generally sold through our Washington D.C. sales office. Advertising is sold to presidential, gubernatorial, Senate and House of Representative candidates, as well as for state and local issues. It is also sold to political action groups (PACs) or other advocacy groups. Retransmission Revenues — We earn revenue from retransmission consent agreements with multi-channel video programming distributors (“MVPDs”) in our markets. The MVPDs are cable operators and satellite carriers who pay us to offer our programming to their customers. We also receive fees from over-the-top virtual MVPDs such as YouTubeTV, DirectTV Now and Sony Vue. The fees we receive are typically based on the number of subscribers in our local market and the contracted rate per subscriber. Other Products and Services — We derive revenue from sponsorships and community events through our Local Media segment. Our National Media segment offers subscription services for access to premium content to its customers. Our Triton business earns revenue from monthly fees charged to audio publishers for converting their content into digital audio streams and inserting digital advertising into those audio streams and providing statistical measurement information about their listening audience. Our podcast business acts as a sales and marketing representative and earns commission for its work. Refer to Note 15. Segment Information for further information, including revenue by significant product and service offering. |
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Revenue Recognition and Contract Balances | Revenue Recognition — Revenue is measured based on the consideration we expect to be entitled to in exchange for promised goods or services provided to customers, and excludes any amounts collected on behalf of third parties. Revenue is recognized upon transfer of control of promised products or services to customers. Advertising — Advertising revenue is recognized, net of agency commissions, over time primarily as ads are aired or impressions are delivered and any contracted audience guarantees are met. We apply the practical expedient to recognize revenue at the amount we have the right to invoice, which corresponds directly to the value a customer has received relative to our performance. For advertising sold based on audience guarantees, audience deficiency may result in an obligation to deliver additional advertisements to the customer. To the extent that we do not satisfy contracted audience ratings, we record deferred revenue until such time that the audience guarantee has been satisfied. Retransmission — Retransmission revenues are considered licenses of functional intellectual property and are recognized at the point in time the content is transferred to the customer. MVPDs report their subscriber numbers to us generally on a 30- to 90-day lag. Prior to receiving the MVPD reporting, we record revenue based on estimates of the number of subscribers, utilizing historical levels and trends of subscribers for each MVPD. Other —Revenues generated by our Triton business are recognized on a ratable basis over the contract term as the monthly service is provided to the customer. Refer to Note 2. Recently Adopted and Issued Accounting Standards for further information on the adoption of the new revenue recognition standard. We record unearned revenue when cash payments are received in advance of our performance. We generally require amounts payable under advertising contracts with political advertising customers to be paid in advance. Unearned revenue totaled $11.5 million at December 31, 2018 and is expected to be recognized within revenue over the next 12 months. Unearned revenue totaled $7.4 million at December 31, 2017. Contract Balances — Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized subsequent to invoicing. We extend credit to customers based upon our assessment of the customer’s financial condition. Collateral is generally not required from customers. Payment terms may vary by contract type, although our terms generally include a requirement of payment within 30 to 90 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience and other currently available evidence. |
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Transaction Price Allocated to Remaining Performance Obligations | Transaction Price Allocated to Remaining Performance Obligations — As of December 31, 2018, we had an aggregate transaction price of $68.9 million allocated to unsatisfied performance obligations related to contracts within our Triton business. We expect to recognize revenue on 92% of these remaining performance obligations over the next 24 months and the remainder thereafter. We did not disclose the value of unsatisfied performance obligations on any other contracts with customers because they are either (i) contracts with an original expected term of one year or less, (ii) contracts for which the sales- or usage-based royalty exception was applied, or (iii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
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Cash Equivalents | Cash Equivalents — Cash equivalents represent highly liquid investments with maturity of less than three months when acquired. |
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Assets recognized from the costs to obtain a contract with a customer | Assets Recognized from the Costs to Obtain a Contract with a Customer— We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We apply and use the practical expedient in the revenue guidance to expense costs as incurred for costs to obtain a contract when the amortization period is one year or less. This expedient applies to advertising sales commissions since advertising contracts are short-term in nature. In addition, we also may provide inducement payments to secure carriage agreements with distributors of our content. These inducement payments are capitalized and amortized to expense over the term of the distribution contract. Capitalized costs to obtain a contract with a customer totaled $9.7 million at December 31, 2018 and $8.0 million at December 31, 2017 and are included within miscellaneous assets on our Consolidated Balance Sheets. Amortization of these costs totaled $1.0 million in 2018. |
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Investments | Investments — From time to time, we make investments in private companies. Investment securities can be impacted by various market risks, including interest rate risk, credit risk and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term. Such changes could materially affect the amounts reported in our financial statements. We record investments in private companies not accounted for under the equity method at cost, net of impairment write-downs, because no readily determinable market price is available. We regularly review our investments to determine if there has been any other-than-temporary decline in value. These reviews require management judgments that often include estimating the outcome of future events and determining whether factors exist that indicate impairment has occurred. We evaluate, among other factors, the extent to which cost exceeds fair value; the duration of the decline in fair value below cost; and the current cash position, earnings and cash forecasts and near-term prospects of the investee. We reduce the cost basis when a decline in fair value below cost is determined to be other than temporary, with the resulting adjustment charged against earnings. |
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Property and Equipment | Property and Equipment — Property and equipment is carried at cost less depreciation. We compute depreciation using the straight-line method over estimated useful lives as follows:
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Programming | Programming — Programming includes the cost of national television network programming, programming produced by us or for us by independent production companies and programs licensed under agreements with independent producers. Our network affiliation agreements require the payment of affiliation fees to the network. Network affiliation fees consist of pre-determined fixed fees in all cases and variable payments based on a share of retransmission revenues above the fixed fees for some of our agreements. Program licenses principally consist of television series and films. Program licenses generally have fixed terms, limit the number of times we can air the programs and require payments over the terms of the licenses. We record licensed program assets and liabilities when the license period has commenced and the programs are available for broadcast. We do not discount program licenses for imputed interest. We amortize program licenses based upon expected cash flows over the term of the license agreement or on a straight-line basis. We classify the portion of the unamortized balance expected to be amortized within one year as a current asset. The costs of programming produced by us or for us by independent production companies is charged to expense over estimated useful lives based upon expected future cash flows. Internal costs, including employee compensation and benefits, to produce daily or live broadcast shows, such as news, sports or daily magazine shows, are expensed as incurred and are not classified in our Consolidated Statements of Operations as program costs, but are classified based on the type of cost incurred. Progress payments on programs not yet available for broadcast are recorded as deposits within programming assets. We review the net realizable value of program assets for impairment using a day-part methodology if the programming is for our local broadcast stations, whereby programs broadcast during a particular time period, such as prime time, are evaluated on an aggregate basis. Programming for our over-the-air broadcast network is reviewed for impairment using the individual network methodology. For our program assets available for broadcast, estimated amortization for each of the next five years is $45.3 million in 2019, $29.3 million in 2020, $19.9 million in 2021, $7.4 million in 2022, $1.0 million in 2023 and $0.2 million thereafter. Actual amortization in each of the next five years will exceed the amounts currently recorded as program assets available for broadcast, as we will continue to produce and license additional programs. Program rights liabilities payable within the next twelve months are included as current liabilities and noncurrent program rights liabilities are included in other noncurrent liabilities. |
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FCC Repack | FCC Repack — In April 2017, the Federal Communications Commission (the “FCC”) began a process of reallocating the broadcast spectrum (the “repack”). Specifically, the FCC is requiring certain television stations to change channels and/or modify their transmission facilities. The U.S. Congress passed legislation which provides the FCC with a fund to reimburse all reasonable costs incurred by stations operating under a full power license and a portion of the costs incurred by stations operating under a low power license that are reassigned to new channels. We record a FCC repack receivable for the amount of reimbursable costs due from the FCC, which totaled $19.2 million at December 31, 2018. The total amount of consideration currently due or that has been collected from the FCC is recorded as a deferred liability and will be recognized against depreciation expense in the same manner that the underlying FCC repack fixed assets are depreciated. Deferred FCC repack income totaled $20.6 million at December 31, 2018. |
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Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill represents the cost of acquisitions in excess of the acquired businesses’ tangible assets and identifiable intangible assets. FCC licenses represent the value assigned to the broadcast licenses of acquired broadcast television stations. Broadcast television stations are subject to the jurisdiction of the Federal Communications Commission (“FCC”) which prohibits the operation of stations except in accordance with an FCC license. FCC licenses stipulate each station’s operating parameters as defined by channels, effective radiated power and antenna height. FCC licenses are granted for a term of up to eight years, and are renewable upon request. We have never had a renewal request denied and all previous renewals have been for the maximum term. We do not amortize goodwill or our FCC licenses, but we review them for impairment at least annually or any time events occur or conditions change that would indicate it is more likely than not the fair value of a reporting unit is below its carrying value. We perform our annual impairment review during the fourth quarter of each year in conjunction with our annual planning cycle. We also assess, at least annually, whether our FCC licenses, classified as indefinite-lived intangible assets, continue to have indefinite lives. We review goodwill for impairment based upon our reporting units, which are defined as operating segments or groupings of businesses one level below the operating segment level. Reporting units with similar economic characteristics are aggregated into a single unit when testing goodwill for impairment. Our reporting units are our Local Media group, Katz, Stitcher, Triton and Newsy. |
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Amortizable Intangible Assets | Amortizable Intangible Assets — Television network affiliations represents the value assigned to an acquired broadcast television station’s relationship with a national television network. Television stations affiliated with national television networks typically have greater profit margins than independent television stations, primarily due to audience recognition of the television station as a network affiliate. We amortize these network affiliation relationships on a straight-line basis over estimated useful lives of 20 years. We amortize customer lists and other intangible assets in relation to their expected future cash flows over estimated useful lives of up to 20 years. |
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Impairment of Long-Lived Assets | Impairment of Long-Lived Assets — We review long-lived assets (primarily property and equipment and amortizable intangible assets) for impairment whenever events or circumstances indicate the carrying amounts of the assets may not be recoverable. Recoverability is determined by comparing the aggregate forecasted undiscounted cash flows derived from the operation of the assets to the carrying amount of the assets. If the aggregate undiscounted cash flow is less than the carrying amount of the assets, then amortizable intangible assets are written down first, followed by other long-lived assets, to fair value. We determine fair value based on discounted cash flows or appraisals. We report long-lived assets to be disposed of at the lower of carrying amount or fair value less costs to sell. |
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Self-Insured Risks | Self-Insured Risks — We are self-insured, up to certain limits, for general and automobile liability, employee health, disability and workers’ compensation claims and certain other risks. Estimated liabilities for unpaid claims totaled $9.8 million at December 31, 2018 and 2017. We estimate liabilities for unpaid claims using actuarial methodologies and our historical claims experience. While we re-evaluate our assumptions and review our claims experience on an ongoing basis, actual claims paid could vary significantly from estimated claims, which would require adjustments to expense. Based on the terms of the Master Transaction Agreement with Journal Media Group ("Journal"), Scripps remains the primary obligor for newspaper insurance claims incurred prior to April 1, 2015. We recorded the liabilities related to these claims on our Consolidated Balance Sheets with an offsetting receivable of $1.7 million, which will be paid by Journal. |
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Income Taxes | Income Taxes — We recognize deferred income taxes for temporary differences between the tax basis and reported amounts of assets and liabilities that will result in taxable or deductible amounts in future years. We establish a valuation allowance if we believe that it is more likely than not that we will not realize some or all of the deferred tax assets. We record a liability for unrecognized tax benefits resulting from uncertain tax positions taken or that we expect to take in a tax return. Interest and penalties associated with such tax positions are included in the tax provision. The liability for additional taxes and interest is included in other liabilities in the Consolidated Balance Sheets. |
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Risk Management Contracts | Risk Management Contracts — We do not hold derivative financial instruments for trading or speculative purposes and we do not hold leveraged contracts. From time to time, we may use derivative financial instruments to limit the impact of interest rate fluctuations on our earnings and cash flows. |
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Share-Based Compensation | Stock-Based Compensation — We have a Long-Term Incentive Plan (the “Plan”) which is described more fully in Note 17. The Plan provides for the award of incentive and nonqualified stock options, stock appreciation rights, restricted stock units (RSUs) and unrestricted Class A Common shares and performance units to key employees and non-employee directors. We recognize compensation cost based on the grant-date fair value of the award. We determine the fair value of awards that grant the employee the underlying shares by the fair value of a Class A Common share on the date of the award. Certain awards of RSUs have performance conditions under which the number of shares granted is determined by the extent to which such performance conditions are met (“Performance Shares”). Compensation costs for such awards are measured by the grant-date fair value of a Class A Common share and the number of shares earned. In periods prior to completion of the performance period, compensation costs are based upon estimates of the number of shares that will be earned. Compensation costs are recognized on a straight-line basis over the requisite service period of the award. The impact of forfeitures is recognized as they occur. The requisite service period is generally the vesting period stated in the award. Grants to retirement-eligible employees are expensed immediately and grants to employees who will become retirement eligible prior to the end of the stated vesting period are expensed over such shorter period because stock compensation grants vest upon the retirement of the employee. |
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Earnings Per Share (EPS) | Earnings Per Share (“EPS”) — Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our RSUs, are considered participating securities for purposes of calculating EPS. Under the two-class method, we allocate a portion of net income to these participating securities and therefore exclude that income from the calculation of EPS for common stock. We do not allocate losses to the participating securities. The following table presents information about basic and diluted weighted-average shares outstanding:
For the year ended December 31, 2017, we incurred a net loss and the inclusion of RSUs and stock options would have been anti-dilutive, and accordingly the diluted EPS calculation for the period excludes those common share equivalents. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of allowance for doubtful accounts | A rollforward of the allowance for doubtful accounts is as follows:
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Estimated useful lives of property and equipment | We compute depreciation using the straight-line method over estimated useful lives as follows:
Property and equipment consisted of the following:
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Components of basic and diluted weighted-average shares | The following table presents information about basic and diluted weighted-average shares outstanding:
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Recently Adopted Standards and Issued Accounting Standards (Tables) |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of the adoption of new accounting standards | The following tables present the impact of adoption of the standard on our Consolidated Statements of Operations:
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Acquisitions (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair values of the assets acquired and liabilities assumed | The following table summarizes the final fair values of the Katz assets acquired and liabilities assumed at the closing date.
The following table summarizes the preliminary fair values of the Triton assets acquired and liabilities assumed at the closing date.
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Pro forma results of operations |
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | The provision for income taxes from continuing operations consisted of the following:
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Effective income tax rate reconciliation | The difference between the statutory rate for federal income tax and the effective income tax rate was as follows:
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Schedule of deferred income tax (liabilities) assets | The approximate effect of the temporary differences giving rise to deferred income tax assets (liabilities) were as follows:
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Gross unrecognized tax benefit reconciliation | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
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Investments (Tables) |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of investments | Investments consisted of the following:
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Property and Equipment (Tables) |
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Property and Equipment | We compute depreciation using the straight-line method over estimated useful lives as follows:
Property and equipment consisted of the following:
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Goodwill and Other Intangible Assets (Tables) |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill by business segment | Goodwill by business segment was as follows:
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Summary of other finite-lived intangible assets | Other intangible assets consisted of the following:
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Summary of other indefinite-lived intangible assets | Other intangible assets consisted of the following:
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Long-Term Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Long-term debt | Long-term debt consisted of the following:
* Fair value of the Senior Notes and the term loan B were estimated based on quoted private market transactions and are classified as Level 1 in the fair value hierarchy. The fair value of the unsecured subordinated notes is determined based on a discounted cash flow analysis using current market interest rates of comparable instruments and is classified as Level 2 in the fair value hierarchy. |
Fair Value Measurement (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities that are measured at fair value on a recurring basis | The following tables set forth our assets that are measured at fair value on a recurring basis at December 31, 2018 and 2017:
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Other Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | Other liabilities consisted of the following:
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Supplemental Cash Flow Information (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in certain working capital accounts | The following table presents additional information about the change in certain working capital accounts:
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Employee Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of benefit expense | The components of the expense consisted of the following:
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Changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) were as follows:
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Schedule of assumptions used | Assumptions used to determine the defined benefit pension plans benefit obligations were as follows:
Assumptions used in determining the annual retirement plans expense were as follows:
(1) Range presented for 2018 discount rate represents the rates used for various remeasurement periods during the year as well as differing rates used for Scripps Pension Plan and Journal Communications, Inc. Plan. (2) Ranges presented for long-term rate of return on plan assets for 2017 and 2016 represent the rates used for Scripps Pension Plan and Journal Communications, Inc. Plan. |
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Schedule of employee benefit plan assets and obligations | The following table presents information about our employee benefit plan assets and obligations:
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Schedule of pension plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets | Information for pension plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets was as follows:
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Schedule of allocation of pension plan assets by asset category | Information related to our pension plan asset allocations by asset category were as follows:
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Plan assets measured using the fair value hierarchy | The following table presents our plan assets as of December 31, 2018 and 2017:
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Segment Information (Tables) |
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information regarding business segments | The following table presents additions to property and equipment by segment:
Information regarding our business segments is as follows:
Total assets by segment for the years ended December 31 were as follows:
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Disaggregation of revenue | A disaggregation of the principal activities from which we generate revenue is as follows:
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Capital Stock and Share Based Compensation Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of options outstanding and exercisable | The following table summarizes our stock option activity:
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Schedule of cash proceeds received from exercises of stock options | The following table summarizes additional information about exercises of stock options:
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Restricted stock and restricted stock unit vesting activity | The following table summarizes our RSU activity:
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Additional information about restricted stock and restricted stock unit vesting | The following table summarizes additional information about RSU vesting:
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Schedule of stock compensation costs | Share-based compensation costs were as follows:
|
Accumulated Other Comprehensive Loss (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Loss | Changes in the accumulated other comprehensive income (loss) ("AOCI") balance by component consisted of the following for the respective years:
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Summarized Quarterly Financial Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of quarterly financial information | Summarized quarterly financial information is as follows:
The sum of the quarterly net income (loss) per share amounts may not equal the reported annual amount because each amount is computed independently based upon the weighted-average number of shares outstanding for the period.
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Assets Held for Sale and Discontinued Operations (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Results of Discontinued Operations and Net Assets Distributed | The following table presents a summary of the radio assets held for sale included in our Consolidated Balance Sheet as of December 31, 2017:
Operating results of our radio operations included in discontinued operations were as follows:
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Summary of Significant Accounting Policies - Trade Receivables (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance for doubtful accounts, beginning balance | $ 1,949 | $ 1,490 | $ 1,517 |
Charged to costs and expenses | 3,767 | 1,407 | 1,601 |
Amounts charged off, net | (1,345) | (948) | (1,628) |
Allowance for doubtful accounts, ending balance | $ 4,371 | $ 1,949 | $ 1,490 |
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Numerator (for basic and diluted earnings per share) | |||||||||||||
Income (loss) from continuing operations, net of tax | $ 35,953 | $ 20,039 | $ 8,662 | $ (8,577) | $ 11,460 | $ (27,604) | $ 6,855 | $ (2,733) | $ 56,077 | $ (12,022) | $ 59,922 | ||
Loss attributable to noncontrolling interest | $ 0 | $ 0 | $ 0 | $ 632 | $ (1,511) | $ 0 | $ 0 | $ 0 | 632 | 1,511 | 0 | ||
Less income allocated to RSUs | (908) | 0 | (817) | ||||||||||
Numberator for basic and diluted earnings per share from continuing operations attributable to the shareholders of The E.W. Scripps Company | $ 55,801 | $ (10,511) | $ 59,105 | ||||||||||
Denominator | |||||||||||||
Basic weighted-average shares outstanding | 80,669 | 81,452 | 81,824 | 81,554 | 81,792 | 82,039 | 82,302 | 82,079 | 81,369 | 82,052 | 83,339 | ||
Effect of dilutive securities: | |||||||||||||
Stock options and restricted stock units | 558 | 0 | 300 | ||||||||||
Diluted weighted-average shares outstanding | 81,348 | 82,084 | 81,852 | 81,554 | 81,792 | 82,039 | 82,465 | 82,079 | 81,927 | 82,052 | 83,639 | ||
Anti-dilutive securities | [1] | 0 | 1,220 | 0 | |||||||||
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Acquisitions - Pro Forma Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
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Business Combinations [Abstract] | ||
Operating revenues | $ 986,373 | $ 998,916 |
Income (loss) from continuing operations attributable to the shareholders of The E.W. Scripps Company | $ (12,477) | $ 55,506 |
Income (loss) per share from operations attributable to the shareholders of The E.W. Scripps Company: | ||
Basic (in dollars per share) | $ (0.13) | $ 0.66 |
Diluted (in dollars per share) | $ (0.13) | $ 0.65 |
Asset Write-Downs and Other Charges and Credits - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | $ 8,911 | $ 4,422 | $ 0 | |||
Acquisition and related integration costs | 4,124 | 0 | 578 | |||
Impairment of programming assets | 8,920 | $ 0 | $ 0 | |||
Impairment charge | $ 29,400 | |||||
Impairment of intangible assets | $ 6,300 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Newspaper Syndication | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Gain on disposal | $ 3,000 | |||||
Employee Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 3,500 | |||||
2015 Midroll acquisition | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Earn out provision adjustment | $ 3,200 | |||||
Katz Broadcasting Group | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Gain recorded on investments | $ 5,400 |
Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Contingency [Line Items] | |||
Deferred tax assets | $ 9,000 | $ 20,076 | |
Provisional discrete net benefit due to rate change | 4,200 | ||
Net deferred tax liability | (16,390) | ||
Potential affect of unrecognized tax benefits on effective tax rate | 300 | ||
Interest accrued on unrecognized tax benefits | 100 | 100 | |
Income tax benefit, recognition of previously unrecognized tax benefits | 300 | $ 1,100 | $ 900 |
Potential change in unrecognized tax benefits | 100 | ||
Federal | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 1,000 | ||
State | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | $ 255,000 |
Income Taxes - Provision for income taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Current: | |||||||||||
Federal | $ (719) | $ 215 | $ 904 | ||||||||
State and local | 1,119 | (963) | (1,628) | ||||||||
Foreign | 1 | 0 | 0 | ||||||||
Total current income tax provision (benefit) | 401 | (748) | (724) | ||||||||
Deferred federal | 16,513 | (16,602) | 31,029 | ||||||||
Deferred state and local | 1,188 | (2,704) | 2,961 | ||||||||
Deferred Foreign Income Tax Expense (Benefit) | (4) | 0 | 0 | ||||||||
Total deferred income tax provision (benefit) | 17,697 | (19,306) | 33,990 | ||||||||
Provision (benefit) for income taxes | $ 9,938 | $ 7,208 | $ 2,983 | $ (2,031) | $ (507) | $ (18,776) | $ 4,884 | $ (5,655) | $ 18,098 | $ (20,054) | $ 33,266 |
Income Taxes - Effective income tax reconciliation (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Effective Income Tax Rate, Tax Rate Reconciliation | |||
Statutory rate | 21.00% | 35.00% | 35.00% |
Effect of: | |||
State and local income taxes, net of federal tax benefit | 3.00% | 2.20% | 3.00% |
Excess tax benefits from stock-based compensation | 0.90% | 7.10% | (1.80%) |
Nondeductible expenses | 1.50% | (4.60%) | 1.40% |
Reserve for uncertain tax positions | (0.20%) | 3.60% | (0.80%) |
U.S. federal statutory rate change | 0.00% | 13.20% | 0.00% |
Other | (1.80%) | 6.00% | (1.10%) |
Effective income tax rate | 24.40% | 62.50% | 35.70% |
Income Taxes - Deferred tax (liabilities) assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Temporary differences [Abstract] | ||
Property and equipment | $ (14,545) | $ (14,493) |
Goodwill and other intangible assets | (81,721) | (52,532) |
Investments, primarily gains and losses not yet recognized for tax purposes | 3,067 | 2,792 |
Accrued expenses not deductible until paid | 8,792 | 7,136 |
Deferred compensation and retiree benefits not deductible until paid | 56,902 | 61,070 |
Other temporary differences, net | 3,416 | 3,267 |
Total temporary differences | (24,089) | 7,240 |
Federal and state net operating loss carryforwards | 12,800 | 15,455 |
Valuation allowance for state deferred tax assets | (5,101) | (2,619) |
Net deferred tax liability | (16,390) | |
Net deferred tax asset | $ 9,000 | $ 20,076 |
Income Taxes - Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Gross unrecognized tax benefits at beginning of year | $ 1,088 | $ 2,665 | $ 5,011 |
Increases in tax positions for prior years | 130 | 16 | 22 |
Decreases in tax positions for prior years | (33) | (390) | (1,684) |
Increases in tax positions for current years | 182 | 0 | 336 |
Decreases in tax positions for current years | 0 | (54) | 0 |
Decreases from lapse in statute of limitations | (255) | (1,149) | (1,020) |
Gross unrecognized tax benefits at end of year | $ 1,112 | $ 1,088 | $ 2,665 |
Restricted Cash - Narrative (Details) - USD ($) $ in Millions |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Cash and Cash Equivalents [Abstract] | ||
Restricted cash | $ 5.1 | $ 5.1 |
Investments - Schedule (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Investments [Abstract] | ||
Investments held at cost | $ 4,114 | $ 4,603 |
Equity method investments | 3,048 | 3,096 |
Total investments | $ 7,162 | $ 7,699 |
Property and Equipment - Schedule (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 560,555 | $ 510,621 |
Accumulated depreciation | 322,628 | 300,626 |
Net property and equipment | 237,927 | 209,995 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 47,054 | 47,405 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 149,159 | 139,685 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 346,850 | 308,873 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 17,492 | $ 14,658 |
Goodwill and Other Intangible Assets - Summary of other intangible assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Carrying amount: | ||
Total carrying amount | $ 437,337 | $ 355,013 |
Accumulated amortization: | ||
Total accumulated amortization | (115,599) | (86,253) |
Net amortizable intangible assets | 321,738 | 268,760 |
Total other intangible assets | 478,953 | 425,975 |
FCC licenses | ||
Accumulated amortization: | ||
Other indefinite-lived intangible assets - FCC licenses | 157,215 | 157,215 |
Television network affiliation relationships | ||
Carrying amount: | ||
Total carrying amount | 248,444 | 248,444 |
Accumulated amortization: | ||
Total accumulated amortization | (62,020) | (49,639) |
Customer lists and advertiser relationships | ||
Carrying amount: | ||
Total carrying amount | 100,500 | 69,500 |
Accumulated amortization: | ||
Total accumulated amortization | (36,380) | (26,345) |
Other intangible assets | ||
Carrying amount: | ||
Total carrying amount | 88,393 | 37,069 |
Accumulated amortization: | ||
Total accumulated amortization | $ (17,199) | $ (10,269) |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Goodwill [Line Items] | |||
Estimated amortization expense of intangible assets for 2019 | $ 34.3 | ||
Estimated amortization expense of intangible assets for 2020 | 33.1 | ||
Estimated amortization expense of intangible assets for 2021 | 30.7 | ||
Estimated amortization expense of intangible assets for 2022 | 27.6 | ||
Estimated amortization expense of intangible assets for 2023 | 22.6 | ||
Estimated amortization expense of intangible assets for later years | 173.4 | ||
Impairment charge | $ 29.4 | ||
Impairment of intangible assets | $ 6.3 | ||
Cable And Satellite Carriage Rights | |||
Goodwill [Line Items] | |||
Intangible software assets acquired | $ 5.8 | $ 9.7 |
Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
||
---|---|---|---|---|
Components of Long-term debt | ||||
Total outstanding principal | $ 696,250 | $ 701,906 | ||
Less: Debt issuance costs | (7,486) | (8,631) | ||
Current portion of long-term debt | (3,000) | (5,656) | ||
Long-term debt (less current portion) | 685,764 | 687,619 | ||
Fair value of long-term debt | [1] | 662,844 | 703,572 | |
Senior unsecured notes | ||||
Components of Long-term debt | ||||
Total outstanding principal | 400,000 | 400,000 | ||
Unsecured subordinated notes | ||||
Components of Long-term debt | ||||
Total outstanding principal | 0 | 2,656 | ||
Amended and restated revolving credit facility | Variable rate credit facility | ||||
Components of Long-term debt | ||||
Total outstanding principal | 0 | 0 | ||
Term Loan B, Maturing 2024 | ||||
Components of Long-term debt | ||||
Total outstanding principal | $ 296,250 | $ 299,250 | ||
|
Fair Value Measurement - Assets and Liabilities Measured at Fair Value (Details) - Recurring Measurements - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets and liabilities that are measured at fair value on a recurring basis | ||
Cash equivalents | $ 1,007 | $ 69,480 |
Level 1 | ||
Assets and liabilities that are measured at fair value on a recurring basis | ||
Cash equivalents | 1,007 | 69,480 |
Level 2 | ||
Assets and liabilities that are measured at fair value on a recurring basis | ||
Cash equivalents | 0 | 0 |
Level 3 | ||
Assets and liabilities that are measured at fair value on a recurring basis | ||
Cash equivalents | $ 0 | $ 0 |
Other Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Other liabilities | ||
Employee compensation and benefits | $ 19,775 | $ 18,520 |
Deferred FCC repack income | 20,620 | 0 |
Programming liability | 43,825 | 54,641 |
Liability for pension benefits | 198,444 | 207,406 |
Liabilities for uncertain tax positions | 811 | 644 |
Other | 11,067 | 12,445 |
Other liabilities (less current portion) | $ 294,542 | $ 293,656 |
Supplemental Cash Flow Information - Change in Certain Working Capital Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Supplemental Cash Flow Elements [Abstract] | |||
Accounts receivable | $ (22,130) | $ (22,522) | $ (20,511) |
Other current assets | (6,207) | (6,150) | (3,130) |
Accounts payable | 965 | (7,259) | 460 |
Accrued employee compensation and benefits | 9,218 | 3,175 | (1,056) |
Other accrued liabilities | (1,525) | 12,645 | (6,100) |
Unearned revenue | 2,915 | 943 | (1,353) |
Other, net | 605 | (3,022) | (1,956) |
Total | $ (16,159) | $ (22,190) | $ (33,646) |
Employee Benefit Plans - Changes Recognized in OCI (Details) - Defined benefit plans - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain/(loss) | $ (7,765) | $ 12,205 | $ (9,379) |
Amortization of actuarial loss | (3,527) | (4,424) | (4,406) |
Prior service cost | (424) | 0 | 0 |
Settlement losses | (11,713) | 0 | 0 |
Total | $ 7,051 | $ 16,629 | $ (4,973) |
Employee Benefit Plans - Annual Retirement Plan Expense Assumptions (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.26% | 4.55% | |
Long-term rate of return on plan assets | 5.10% | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.71% | ||
Long-term rate of return on plan assets | 4.20% | 4.50% | |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.58% | ||
Long-term rate of return on plan assets | 4.30% | 4.65% |
Employee Benefit Plans - Pension Plans with Accumulated Benefit Obligation in Excess of Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Defined benefit plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 544,581 | $ 654,536 | |
Projected benefit obligation | 544,581 | 654,536 | $ 625,535 |
Fair value of plan assets | 361,891 | 464,441 | 412,459 |
SERPs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 16,985 | 23,691 | |
Projected benefit obligation | 16,985 | 23,691 | 21,260 |
Fair value of plan assets | $ 0 | $ 0 | $ 0 |
Employee Benefit Plans - Defined Benefit Plan Obligations Assumptions (Details) |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Weighted average discount rate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted average discount rate | 4.38% | 3.70% | 4.26% |
Employee Benefit Plans - Allocation of Plan Assets (Details) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 100.00% | |
Percentage of plan assets at end of period | 100.00% | 100.00% |
US equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 20.00% | |
Percentage of plan assets at end of period | 19.00% | 21.00% |
Non-US equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 30.00% | |
Percentage of plan assets at end of period | 28.00% | 29.00% |
Fixed-income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 45.00% | |
Percentage of plan assets at end of period | 46.00% | 44.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation | 5.00% | |
Percentage of plan assets at end of period | 7.00% | 6.00% |
Employee Benefit Plans - Schedule of plan assets by fair value hierarchy (Details) - Estimate of fair value - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of plan assets | $ 361,891 | $ 464,441 |
Equity securities, Common/collective trust funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of plan assets | 168,547 | 234,061 |
Fixed income, Common/collective trust funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of plan assets | 166,079 | 204,453 |
Real Estate Fund | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of plan assets | 24,798 | 23,102 |
Cash equivalents | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of plan assets | $ 2,467 | $ 2,825 |
Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | $ 368,113 | $ 302,726 | $ 283,395 | $ 254,191 | $ 261,746 | $ 200,509 | $ 216,242 | $ 198,475 | $ 1,208,425 | $ 876,972 | $ 874,451 |
Core Advertising Revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 696,449 | 555,228 | 507,987 | ||||||||
Political Advertising Revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 139,600 | 8,651 | 100,761 | ||||||||
Retransmission revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | 304,402 | 259,712 | 220,723 | ||||||||
Other Revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenues | $ 67,974 | $ 53,381 | $ 44,980 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Future minimum payments on noncancelable leases in 2019 | $ 11.2 | ||
Future minimum payments on noncancelable leases in 2020 | 9.2 | ||
Future minimum payments on noncancelable leases in 2021 | 6.5 | ||
Future minimum payments on noncancelable leases in 2022 | 6.4 | ||
Future minimum payments on noncancelable leases in 2023 | 11.4 | ||
Future minimum payments on noncancelable leases due in later years | 15.3 | ||
Rental expense | 15.5 | $ 13.1 | $ 11.1 |
Contractual Obligation, Fiscal Year Maturity [Abstract] | |||
Contractual obligations due in 2019 | 399.9 | ||
Contractual obligations due in 2020 | 400.5 | ||
Contractual obligations due in 2021 | 385.9 | ||
Contractual obligations due in 2022 | 182.3 | ||
Contractual obligations due in 2023 | 33.6 | ||
Contractual obligations due in later years | $ 13.7 |
Capital Stock and Share Based Compensation Plans - Summary of stock option transactions (Details) - Stock Options |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018
$ / shares
shares
|
Dec. 31, 2017
$ / shares
shares
|
Dec. 31, 2016
$ / shares
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding and Exercisable [Roll Forward] | |||
Options outstanding at beginning of period, number of shares | shares | 251,507 | 486,914 | 996,879 |
Options exercised in period, number of shares | shares | (251,507) | (235,407) | (509,965) |
Options outstanding at end of period, number of shares | shares | 0 | 251,507 | 486,914 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding and Exercisable, Weighted Average Exercise Price [Roll Forward] | |||
Options outstanding at beginning of period, weighted-average exercise price (USD per share) | $ 7.38 | $ 6.81 | $ 7.45 |
Options exercised in period, weighted-average exercise price (USD per share) | 7.38 | 6.20 | 8.07 |
Options outstanding at end of period, weighted-average exercise price (USD per share) | $ 0.00 | $ 7.38 | $ 6.81 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding and Exercisable, Exercise Price Range [Roll Forward] | |||
Options outstanding at beginning of period, lower end of range of exercise price range (USD per share) | 6 | 6 | 6 |
Options outstanding at beginning of period, upper end of range of exercise price range (USD per share) | 9 | 9 | 9 |
Options exercised, lower end of exercise price range (USD per share) | 6 | 6 | 8 |
Options exercised, upper end of exercise price range (USD per share) | 9 | 8 | 9 |
Options outstanding at end of period, lower end of range of exercise price range (USD per share) | 0 | 6 | 6 |
Options outstanding at end of period, upper end of range of exercise price range (USD per share) | 0 | 9 | 9 |
Capital Stock and Share Based Compensation Plans - Cash proceeds (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received upon exercise | $ 1,857 | $ 1,461 | $ 4,641 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received upon exercise | 1,857 | 1,461 | 4,641 |
Intrinsic value (market value on date of exercise less exercise price) | 1,266 | 3,919 | 4,888 |
Tax benefits realized | $ 315 | $ 1,497 | $ 1,877 |
Capital Stock and Share Based Compensation Plans - Restricted stock and restricted stock unit activity (Details) - Restricted Stock Units (RSUs) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018
$ / shares
shares
|
Dec. 31, 2017
$ / shares
shares
|
Dec. 31, 2016
$ / shares
shares
|
Dec. 31, 2015
$ / shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Unvested shares at beginning of period, number of shares | shares | 1,187,923 | 1,425,177 | 910,041 | |
Shares and units awarded in period, number of shares | shares | 816,771 | 653,522 | 996,839 | |
Shares and units vested in period, number of shares | shares | (771,904) | (581,920) | (444,267) | |
Shares and units forfeited in period, number of shares | shares | (57,348) | (308,856) | (37,436) | |
Unvested shares at end of period, number of shares | shares | 1,175,442 | 1,187,923 | 1,425,177 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Unvested shares at beginning of period, weighted-average value (USD per share) | $ 15.86 | $ 19.99 | $ 17.05 | $ 18.22 |
Shares and units awarded in period, weighted-average value (USD per share) | 13.28 | 22.51 | 15.76 | |
Shares and units vested in period, weighted-average value (USD per share) | 14.16 | 20.78 | 17.78 | |
Shares and units forfeited in period, weighted-average value (USD per share) | 16.68 | 17.20 | 16.82 | |
Unvested shares at end of period, weighted-average value (USD per share) | $ 15.86 | $ 19.99 | $ 17.05 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Exercise Price Range [Roll Forward] | ||||
Unvested shares and units, range of exercise prices, beginning of period, lower range (USD per share) | 14 | 12 | 10 | |
Unvested shares and units, range of exercise prices, beginning of period, upper range (USD per share) | 24 | 24 | 24 | |
Shares and units awarded in period, range of exercise prices, lower range (USD per share) | 11 | 17 | 13 | |
Shares and units awarded in period, range of exercise prices, upper range (USD per share) | 17 | 24 | 18 | |
Shares and units vested in period, range of exercise prices, lower range (USD per share) | 11 | 14 | 13 | |
Shares and units vested in period, range of exercise prices, upper range (USD per share) | 18 | 24 | 19 | |
Shares and units forfeited in period, range of exercise prices, lower range (USD per share) | 13 | 14 | 12 | |
Shares and units forfeited in period, range of exercise prices, upper range (USD per share) | 23 | 24 | 24 | |
Unvested shares and units, range of exercise prices, end of period, lower range (USD per share) | 11 | 14 | 12 | |
Unvested shares and units, range of exercise prices, end of period, upper range (USD per share) | 24 | 24 | 24 |
Capital Stock and Share Based Compensation Plans - Additional restricted stock and restricted stock unit vesting (Details) - Restricted Stock Units (RSUs) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of RSUs vested | $ 10,930 | $ 12,090 | $ 7,898 |
Tax benefits realized on shares and units vested | $ 1,758 | $ 4,630 | $ 3,033 |
Capital Stock and Share Based Compensation Plans - Schedule of stock compensation costs (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation, net of tax | $ 8,100 | $ 7,717 | $ 4,835 |
Discontinued Operations | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share-based compensation | 227 | 465 | 270 |
Continuing Operations | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share-based compensation | 10,781 | 12,495 | 7,823 |
Restricted Stock Units (RSUs) | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share-based compensation | $ 11,008 | $ 12,960 | $ 8,093 |
Accumulated Other Comprehensive Loss (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive loss, beginning balance | $ (102,922,000) | $ (93,347,000) | |
Other comprehensive income (loss) before reclassifications, net of tax | (5,416,000) | 6,525,000 | |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 12,941,000 | 3,270,000 | |
Net current-period other comprehensive income (loss) | 7,525,000 | 9,795,000 | |
Reclassification of disproportionate tax effects from AOCI | 19,370,000 | ||
Accumulated other comprehensive loss, ending balance | (95,397,000) | (102,922,000) | $ (93,347,000) |
Other comprehensive income (loss) before reclassifications, tax amount | (22,000) | (136,000) | 102,000 |
Defined Benefit Pension Items | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive loss, beginning balance | (102,955,000) | (93,676,000) | |
Other comprehensive income (loss) before reclassifications, net of tax | (5,351,000) | 6,880,000 | |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 12,941,000 | 3,270,000 | |
Net current-period other comprehensive income (loss) | 7,590,000 | 10,150,000 | |
Reclassification of disproportionate tax effects from AOCI | 19,429,000 | ||
Accumulated other comprehensive loss, ending balance | (95,365,000) | (102,955,000) | (93,676,000) |
Other comprehensive income (loss) before reclassifications, tax amount | (1,803,000) | 2,814,000 | |
Amounts reclassified from AOCI, tax amount | 4,360,000 | 1,338,000 | |
Other | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive loss, beginning balance | 33,000 | 329,000 | |
Other comprehensive income (loss) before reclassifications, net of tax | (65,000) | (355,000) | |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | |
Net current-period other comprehensive income (loss) | (65,000) | (355,000) | |
Reclassification of disproportionate tax effects from AOCI | (59,000) | ||
Accumulated other comprehensive loss, ending balance | (32,000) | 33,000 | $ 329,000 |
Other comprehensive income (loss) before reclassifications, tax amount | (22,000) | (136,000) | |
Amounts reclassified from AOCI, tax amount | $ 0 | $ 0 |
Summarized Quarterly Financial Information (Unaudited) - Schedule (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Impairment charge | $ 29,400 | ||||||||||
Impairment of intangible assets | 6,300 | ||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||
Total operating revenues | $ 368,113 | $ 302,726 | $ 283,395 | $ 254,191 | $ 261,746 | 200,509 | $ 216,242 | $ 198,475 | $ 1,208,425 | $ 876,972 | $ 874,451 |
Costs and expenses | (281,628) | (247,304) | (245,610) | (238,682) | (228,938) | (189,184) | (184,095) | (184,414) | (1,013,224) | (786,631) | (690,562) |
Depreciation and amortization of intangible assets | (17,587) | (15,598) | (15,382) | (15,420) | (14,926) | (13,775) | (13,781) | (13,861) | (63,987) | (56,343) | (55,204) |
Impairment of goodwill and intangible assets | 0 | (35,732) | 0 | 0 | 0 | (35,732) | 0 | ||||
Gains (losses), net on disposal of property and equipment | (1,105) | 501 | 66 | (717) | 7 | (114) | (15) | (47) | (1,255) | (169) | (480) |
Interest expense | (9,143) | (9,003) | (9,279) | (8,759) | (8,534) | (5,720) | (8,248) | (4,195) | (36,184) | (26,697) | (18,039) |
Defined benefit pension plan expense | (13,446) | (3,529) | (1,389) | (1,388) | (3,627) | (3,551) | (3,467) | (3,467) | (19,752) | (14,112) | (14,332) |
Miscellaneous, net | 687 | (546) | (156) | 167 | 5,225 | 1,187 | 5,103 | (879) | 152 | 10,636 | (2,646) |
Income (loss) from continuing operations before income taxes | 45,891 | 27,247 | 11,645 | (10,608) | 10,953 | (46,380) | 11,739 | (8,388) | 74,175 | (32,076) | 93,188 |
Provision (benefit) for income taxes | 9,938 | 7,208 | 2,983 | (2,031) | (507) | (18,776) | 4,884 | (5,655) | 18,098 | (20,054) | 33,266 |
Income (loss) from continuing operations, net of tax | 35,953 | 20,039 | 8,662 | (8,577) | 11,460 | (27,604) | 6,855 | (2,733) | 56,077 | (12,022) | 59,922 |
Income (loss) from discontinued operations, net of tax | (13,974) | (908) | (2,942) | (18,504) | (5,999) | 920 | 1,690 | 794 | (36,328) | (2,595) | 7,313 |
Net income (loss) | 21,979 | 19,131 | 5,720 | (27,081) | 5,461 | (26,684) | 8,545 | (1,939) | 19,749 | (14,617) | 67,235 |
Loss attributable to noncontrolling interest | 0 | 0 | 0 | (632) | 1,511 | 0 | 0 | 0 | (632) | (1,511) | 0 |
Net income (loss) attributable to the shareholders of The E.W. Scripps Company | $ 21,979 | $ 19,131 | $ 5,720 | $ (26,449) | $ 6,972 | $ (26,684) | $ 8,545 | $ (1,939) | $ 20,381 | $ (13,106) | $ 67,235 |
Income (loss) from continuing operations, per basic share | $ 0.44 | $ 0.24 | $ 0.10 | $ (0.10) | $ 0.16 | $ (0.34) | $ 0.08 | $ (0.03) | $ 0.69 | $ (0.13) | $ 0.71 |
Income (loss) from discontinued operations, per basic share | (0.17) | (0.01) | (0.04) | (0.23) | (0.07) | 0.01 | 0.02 | 0.01 | (0.44) | (0.03) | 0.09 |
Income (loss) from continuing operations, per diluted share | 0.44 | 0.24 | 0.10 | (0.10) | 0.16 | (0.34) | 0.08 | (0.03) | 0.68 | (0.13) | 0.71 |
Income (loss) from discontinued operations, per diluted share | $ (0.17) | $ (0.01) | $ (0.04) | $ (0.23) | $ (0.07) | $ 0.01 | $ 0.02 | $ 0.01 | $ (0.44) | $ (0.03) | $ 0.09 |
Basic weighted-average shares outstanding | 80,669 | 81,452 | 81,824 | 81,554 | 81,792 | 82,039 | 82,302 | 82,079 | 81,369 | 82,052 | 83,339 |
Diluted weighted-average shares outstanding | 81,348 | 82,084 | 81,852 | 81,554 | 81,792 | 82,039 | 82,465 | 82,079 | 81,927 | 82,052 | 83,639 |
Cash dividends per share of common stock (USD per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0 | $ 0 | $ 0.00 | $ 0 | $ 0.20 | $ 0 | $ 0 |
Noncontrolling Interest (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Noncontrolling Interest [Abstract] | |
Noncontrolling interest in joint venture | 30.00% |
Non-cash contributions to venture | $ 2.1 |
Assets Held for Sale and Discontinued Operations - Operating Results of Discontinued Operations and Net Assets Distributed (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Impairment of goodwill and intangible assets | $ (29,400) | ||||||||||
(Loss) income from discontinued operations, net of tax | $ (13,974) | $ (908) | $ (2,942) | $ (18,504) | $ (5,999) | $ 920 | $ 1,690 | $ 794 | $ (36,328) | $ (2,595) | $ 7,313 |
Radio | Discontinued Operations, Held-for-sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Operating revenues | 49,243 | 68,630 | 73,069 | ||||||||
Total costs and expenses | (42,694) | (57,061) | (56,852) | ||||||||
Depreciation and amortization of intangibles | 0 | (2,910) | (3,377) | ||||||||
Impairment of goodwill and intangible assets | (8,000) | (25,900) | (8,000) | 0 | |||||||
Other, net | (179) | (258) | (63) | ||||||||
Income (loss) from operations of discontinued operations | (19,530) | 401 | 12,777 | ||||||||
Pretax loss on disposal of discontinued operations | (18,558) | 0 | 0 | ||||||||
(Loss) income on discontinued operations before income taxes | (38,088) | 401 | 12,777 | ||||||||
Benefit (provision) for income taxes | 1,760 | (2,996) | (5,464) | ||||||||
(Loss) income from discontinued operations, net of tax | $ (36,328) | (2,595) | $ 7,313 | ||||||||
Assets: | |||||||||||
Total current assets | 12,891 | 12,891 | |||||||||
Property, plant and equipment | 35,470 | 35,470 | |||||||||
Goodwill and intangible assets | 87,462 | 87,462 | |||||||||
Other assets | 181 | 181 | |||||||||
Total assets included in the disposal group | 136,004 | 136,004 | |||||||||
Liabilities: | |||||||||||
Total current liabilities | 3,248 | 3,248 | |||||||||
Deferred income taxes | 16,288 | 16,288 | |||||||||
Other liabilities | 0 | 0 | |||||||||
Total liabilities included in the disposal group | 19,536 | 19,536 | |||||||||
Net assets included in the disposal group | $ 116,468 | $ 116,468 |
Assets Held for Sale and Discontinued Operations - Narrative (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2018
USD ($)
radio_station
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment charge | $ 29,400 | ||||
Disposal Group, including discontinued operation, professional fees | $ 2,500 | ||||
Radio | Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of Radio Stations | radio_station | 34 | ||||
Impairment charge | $ 8,000 | $ 25,900 | $ 8,000 | $ 0 | |
Non-deductible charges | $ 8,000 | $ 30,900 |
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