Segment Information

We determine our business segments based upon our management and internal reporting structures, as well as the basis that our chief operating decision maker makes resource allocation decisions.

Effective December 31, 2017, we realigned our businesses into a new internal organization and began reporting to reflect this new structure. Under the new structure, we have the following reportable segments: Local Media, National Media and Other. We have recast the operating results for all periods to reflect this change.

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, one independent station and three 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, telecommunications 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 brands include Katz, Midroll, Newsy 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. Corporate assets are primarily cash and cash equivalents, restricted cash, property and equipment primarily used for corporate purposes and deferred income taxes.

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

Information regarding our business segments is as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2018			2017			2018			2017

Segment operating revenues:
Local Media	$	213,248		$	201,430		$	405,307		$	388,494
National Media	68,226			13,016			128,947			22,703
Other	1,921			1,796			3,332			3,520
Total operating revenues	$	283,395		$	216,242		$	537,586		$	414,717
Segment profit (loss):
Local Media	$	53,368		$	48,736		$	84,987		$	81,087
National Media	2,037			(3,596		)	4,072			(7,553		)
Other	(1,643		)	(1,658		)	(1,894		)	(1,409		)
Shared services and corporate	(13,647		)	(11,335		)	(27,734		)	(25,917		)
Restructuring costs	(2,330		)	—			(6,137		)	—
Depreciation and amortization of intangibles	(15,382		)	(13,781		)	(30,802		)	(27,642		)
Gains (losses), net on disposal of property and equipment	66			(15		)	(651		)	(62		)
Interest expense	(9,279		)	(8,248		)	(18,038		)	(12,443		)
Defined benefit pension plan expense	(1,389		)	(3,467		)	(2,777		)	(6,934		)
Miscellaneous, net	(156		)	5,103			11			4,224
Income from continuing operations before income taxes	$	11,645		$	11,739		$	1,037		$	3,351
Depreciation:
Local Media	$	7,331		$	8,002		$	14,887		$	15,837
National Media	134			15			230			22
Other	38			59			76			126
Shared services and corporate	387			474			796			956
Total depreciation	$	7,890		$	8,550		$	15,989		$	16,941
Amortization of intangibles:
Local Media	$	3,705		$	3,632		$	7,410		$	7,586
National Media	3,448			1,260			6,726			2,438
Shared services and corporate	339			339			677			677
Total amortization of intangibles	$	7,492		$	5,231		$	14,813		$	10,701
Additions to property and equipment:
Local Media	$	10,613		$	4,855		$	20,113		$	8,802
National Media	4,051			186			5,725			197
Shared services and corporate	13			22			73			121
Total additions to property and equipment	$	14,677		$	5,063		$	25,911		$	9,120

A disaggregation of the principal activities from which we generate revenue is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2018		2017		2018		2017

Operating revenues:
Core advertising	$	179,294	$	134,977	$	345,847	$	253,832
Political advertising	14,882		2,525		17,466		3,566
Retransmission and carriage	74,658		66,059		145,718		132,270
Other	14,561		12,681		28,555		25,049
Total operating revenues	$	283,395	$	216,242	$	537,586	$	414,717