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Discontinued Operations | 12 Months Ended
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Dec. 31, 2017
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | 3. Discontinued Operations On May 9, 2017 we entered into a definitive agreement to sell our Joplin, Missouri and Victoria, Texas television stations (“Television Sale”) for approximately $66.6 million, subject to certain adjustments, to Evening Telegram Company d/b/a Morgan Murphy Media. The Television Sale was completed on September 1, 2017 and the Company received net proceeds of $69.5 million which included the sales price of $66.6 million, the sale of accounts receivable of approximately $3.4 million, offset by certain closing adjustments and transactional costs of $500 thousand. The Company recognized a pretax gain of $50.8 million as a result of the Television Sale in the third quarter of 2017. The gain net of tax for the Television Sale was $29.9 million. Effective September 1, 2017, the Company used $24.2 million of the proceeds from the Television Sale to finance the acquisition of radio stations in South Carolina, which included the purchase price of $23 million, the purchase of $1.3 million in accounts receivable offset by certain closing adjustments and transactional costs of approximately $50,000 (as described in Note 9). On October 5, 2017 and November 3, 2017, the Company used $5,287,000 and $5,000,000 respectively of the proceeds from the Television Sale to pay down a portion of its Revolving Credit Facility (as defined and described in Note 4). In accordance with authoritative guidance we have reported the results of operations of the Joplin, Missouri and Victoria, Texas television stations as discontinued operations in the accompanying consolidated financial statements. For all previously reported periods, certain amounts in the consolidated financial statements have been reclassified. All of the assets and liabilities of the Joplin, Missouri and Victoria, Texas television stations have been classified as discontinued operations and the net results of operations have been reclassified from continuing operations to discontinued operations. These were previously included in the Company’s television segment. The following table shows the components of the results from discontinued operations associated with the Television Sale as reflected in the Company’s Consolidated Statements of Operations (in thousands):
|  | Year Ended December 31, |
|  | 2017 (5) |  | 2016 |  | 2015 |
Net operating revenue |  | $ | 14,238 |  | $ | 23,636 |  | $ | 21,064 |
Station operating expense (1) |  |  | 9,757 |  |  | 14,743 |  |  | 14,080 |
Other operating (income) expense |  |  | 31 |  |  | (42) |  |  | 32 |
Operating income |  |  | 4,450 |  |  | 8,935 |  |  | 6,952 |
Interest expense (2) |  |  | 21 |  |  | 32 |  |  | 33 |
Other income (3) |  |  | — |  |  | — |  |  | (417) |
Income before income taxes |  |  | 4,429 |  |  | 8,903 |  |  | 7,336 |
Pretax gain on the disposal of discontinued operations |  |  | 50,842 |  |  | — |  |  | — |
Total pretax gain on discontinued operations |  |  | 55,271 |  |  | 8,903 |  |  | 7,336 |
Income tax expense (4) |  |  | 22,800 |  |  | 3,627 |  |  | 3,068 |
Income from discontinued operations, net of tax |  | $ | 32,471 |  | $ | 5,276 |  | $ | 4,268 |
| (1) | No depreciation expense was recorded by the Company beginning May 9, 2017, the date the Television segment assets’ were held for sale.
| (2) | Interest expense related to the Surtsey debt that is guaranteed by the Television stations. Our affiliate repaid this loan when the television stations were sold on September 1, 2017.
| (3) | Other income in 2015 relates to a gain on an insurance claim.
| (4) | The effective tax rates on pretax income from discontinued operations were approximately 41%.
| (5) | Results of operations for the Television stations are reflected through August 31, 2017. The effective date of the sale was September 1, 2017.
The following table is a summary of the assets and liabilities of discontinued operations (in thousands):
|  | December 31, 2017 |  | December 31, 2016 |
Major Classes of Current Assets of Discontinued Operations |  |  |  |  |  |  |
Accounts receivable |  | $ | — |  | $ | 3,868 |
Prepaid expenses and other current assets |  |  | — |  |  | 625 |
Barter transactions |  |  | — |  |  | 132 |
Total of current assets of discontinued operations |  | $ | — |  | $ | 4,625 |
Major Classes of Non-Current Assets of Discontinued Operations |  |  |  |  |  |  |
Property and equipment, net (1) |  | $ | — |  | $ | 7,388 |
Broadcast licenses, net (1) |  |  | — |  |  | 9,607 |
Other intangibles, deferred costs and investments, net (1) |  |  | — |  |  | 1,053 |
Total of non-current assets of discontinued operations |  | $ | — |  | $ | 18,048 |
Total Assets Classified as Part of Discontinued Operations in the Condensed Consolidated Balance Sheets |  | $ | — |  | $ | 22,673 |
Major Classes of Current Liabilities of Discontinued Operations |  |  |  |  |  |  |
Accounts payable |  | $ | — |  | $ | 759 |
Barter transactions |  |  | — |  |  | 163 |
Current portion of long term debt |  |  | — |  |  | 1,078 |
Other liabilities (1) |  |  | — |  |  | 971 |
Total of current liabilities of discontinued operations |  | $ | — |  | $ | 2,971 |
Major Classes of Current Liabilities of Discontinued Operations |  |  |  |  |  |  |
Other liabilities (1) |  | $ | — |  | $ | 1,058 |
Total of non-current liabilities of discontinued operations |  | $ | — |  | $ | 1,058 |
Total Liabilities Classified as Part of Discontinued Operations in the Condensed Consolidated Balance Sheets |  | $ | — |  | $ | 4,029 |
Net Assets Classified as Part of Discontinued Operations in the Condensed Consolidated Balance Sheets |  | $ | — |  | $ | 18,644 |
| (1) | For prior periods, the current and long-term classification of assets and liabilities does not change as they did not meet the held-for-sale criteria the prior periods. We closed the disposition on September 1, 2017, therefore all amounts in the current year are considered current assets or liabilities of discontinued operations.
The following table represents the components of the results from discontinued operations associated with the Television Sale as reflected in the Company’s unaudited Condensed Consolidated Statements of Cash Flows (in thousands):
|  | December 31, 2017 |  | December 31, 2016 |  | December 31, 2015 |
Cash paid during the period |  |  |  |  |  |  |  |  |  |
Interest |  | $ | 21 |  | $ | 32 |  | $ | 33 |
Income taxes |  |  | 23,260 |  |  | 2,677 |  |  | 1,972 |
Significant operating non-cash items |  |  |  |  |  |  |  |  |  |
Depreciation and amortization (1) |  | $ | 445 |  | $ | 1,387 |  | $ | 1,399 |
Broadcast program rights amortization |  |  | 418 |  |  | 628 |  |  | 637 |
Barter revenue, net |  |  | 18 |  |  | 32 |  |  | (50) |
Acquisition of property and equipment |  |  | — |  |  | 43 |  |  | 3 |
Loss (gain) on sale of assets |  |  | 31 |  |  | (42) |  |  | 32 |
Pretax gain on television sale |  |  | 50,842 |  |  | — |  |  | — |
Significant investing items |  |  |  |  |  |  |  |  |  |
Acquisition of property and equipment |  | $ | 335 |  | $ | 894 |  | $ | 1,973 |
Proceeds from sale and disposal of assets |  |  | — |  |  | (59) |  |  | (3) |
Net proceeds from sale of television stations (2) |  |  | 69,528 |  |  | — |  |  | — |
Proceeds from insurance claim |  |  | — |  |  | — |  |  | (777) |
| (1) | No depreciation expense was recorded by the Company beginning May 9, 2017, the date the Television segment assets’ were held for sale.
| (2) | Net proceeds from the sale of the television stations reflect the sales price of $66.6 million, the sale of accounts receivable of approximately $3.4 million, offset by certain closing adjustments and transactional costs of approximately $500 thousand.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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