Segment Information

We determine our business segments based upon our management and internal reporting structures. Our reportable segments are strategic businesses that offer different products and services.

Our television segment includes 15 ABC affiliates, five NBC affiliates, two FOX affiliates and two CBS affiliates. We also have three MyTV affiliates, one CW affiliate, one independent station and three Azteca America Spanish-language affiliates. Our television stations reach approximately 18% of the nation’s television households based on audience reach. Television stations earn revenue primarily from the sale of advertising time to local, national and political advertisers and retransmission fees received from cable operators, telecommunications companies and satellite carriers.

Our radio segment consists of 34 radio stations in eight markets. We operate 28 FM stations and six AM stations. Our radio stations earn revenue primarily from the sale of advertising to local advertisers.

Our digital segment includes the digital operations of our local television and radio businesses. It also includes the operations of our national digital businesses of Midroll, a podcast industry leader, Newsy, the national news network and Cracked, a multi-platform humor and satire brand. Our digital operations earn revenue primarily through the sale of advertising, marketing services and agency commissions.

We allocate a portion of certain corporate costs and expenses, including information technology, certain employee benefits and shared services, to our business segments. The allocations are generally amounts agreed upon by management, which may differ from an arms-length amount. Corporate assets are primarily cash and cash equivalents, restricted cash, property and equipment primarily used for corporate purposes, and deferred income taxes.

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

Information regarding our business segments is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2017			2016			2017			2016

Segment operating revenues:
Television	$	179,920		$	197,283		$	553,022		$	568,932
Radio	17,870			19,301			49,112			52,087
Digital	17,846			15,754			52,552			43,287
Other	814			702			4,585			6,049
Total operating revenues	$	216,450		$	233,040		$	659,271		$	670,355
Segment profit (loss):
Television	$	32,083		$	58,305		$	116,583		$	153,290
Radio	1,510			2,528			6,027			8,574
Digital	(5,685		)	(5,633		)	(16,061		)	(13,481		)
Other	(897		)	(832		)	(2,342		)	(984		)
Shared services and corporate	(11,048		)	(8,520		)	(36,178		)	(32,686		)
Acquisition and related integration costs	—			—			—			(578		)
Restructuring costs	(2,407		)	—			(2,407		)	—
Depreciation and amortization of intangibles	(14,655		)	(14,892		)	(44,028		)	(44,089		)
Impairment of goodwill and intangibles	(35,732		)	—			(35,732		)	—
(Losses) gains, net on disposal of property and equipment	(124		)	(26		)	(435		)	(44		)
Interest expense	(5,720		)	(4,592		)	(18,163		)	(13,603		)
Defined benefit pension plan expense	(3,551		)	(3,605		)	(10,485		)	(10,504		)
Miscellaneous, net	1,187			(596		)	5,411			(1,245		)
Income (loss) from operations before income taxes	$	(45,039	)	$	22,137		$	(37,810	)	$	44,650
Depreciation:
Television	$	8,018		$	7,120		$	23,846		$	22,517
Radio	615			653			1,816			1,733
Digital	18			40			49			148
Other	43			67			169			196
Shared services and corporate	468			527			1,424			1,397
Total depreciation	$	9,162		$	8,407		$	27,304		$	25,991
Amortization of intangibles:
Television	$	3,633		$	4,239		$	11,138		$	12,718
Radio	265			265			795			795
Digital	1,257			1,643			3,776			3,570
Shared services and corporate	338			338			1,015			1,015
Total amortization of intangibles	$	5,493		$	6,485		$	16,724		$	18,098
Additions to property and equipment:
Television	$	3,610		$	6,618		$	12,412		$	16,248
Radio	581			628			1,135			944
Digital	122			34			319			51
Other	—			74			—			115
Shared services and corporate	155			643			276			967
Total additions to property and equipment	$	4,468		$	7,997		$	14,142		$	18,325