Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that it was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~August 5, 2020,~~May 3, 2021, the registrant had ~~45,288,390~~42,744,309 shares of Class A Common Stock outstanding.

	June 30,			December 31,			March 31,			December 31,
	2020			2019			2021			2020
ASSETS
Current assets:
Cash and cash equivalents	$	664,624		$	232,070		$	339,777		$	152,701
Restricted cash and cash equivalents		16,610			16,608			16,608			16,608
Accounts receivable, net of allowance for doubtful accounts of $27,048 and $17,205, respectively		762,930			883,921
Spectrum asset		-			67,171
Accounts receivable, net of allowance for doubtful accounts of $36,886 and $34,922, respectively								920,055			904,801
Prepaid expenses and other current assets		98,620			151,997			99,679			135,872
Total current assets		1,542,784			1,351,767			1,376,119			1,209,982
Property and equipment, net		1,581,348			1,290,428			1,600,909			1,604,881
Goodwill		2,880,675			2,996,875			2,982,507			2,984,008
FCC licenses		2,833,074			2,921,465			2,908,951			2,909,704
Network affiliation agreements, net		2,284,083			2,532,266			2,202,676			2,250,283
Other intangible assets, net		683,816			727,354			664,606			688,918
Assets held for sale		4,524			240,524
Investments		1,307,604			1,477,353			1,185,541			1,333,778
Other noncurrent assets, net		422,148			451,705			426,240			422,722
Total assets⁽¹⁾	$	13,540,056		$	13,989,737
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total assets⁽¹⁾							$	13,347,549		$	13,404,276
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of debt	$	60,491		$	109,310		$	24,804		$	21,429
Accounts payable		176,392			157,366			217,865			218,418
Broadcast rights payable								90,819			105,557
Accrued expenses		440,099			541,803			324,750			307,192
Income tax payable		83,011			873
Liability to surrender spectrum asset		-			77,962
Other current liabilities		62,336			60,243			71,424			78,292
Total current liabilities		822,329			947,557			729,662			730,888
Debt		7,977,577			8,383,278			7,567,303			7,646,574
Deferred tax liabilities		1,698,042			1,710,664			1,673,207			1,674,008
Other noncurrent liabilities		840,331			894,745			786,369			815,930
Total liabilities⁽¹⁾		11,338,279			11,936,244
Commitments and contingencies (Note 15)
Total liabilities⁽¹⁾								10,756,541			10,867,400
Commitments and contingencies (Note 14)
Stockholders' equity:
Preferred stock - $0.01 par value, 200,000 shares authorized; NaN issued and outstanding at each of June 30, 2020 and December 31, 2019		-			-
Class A Common stock - $0.01 par value, 100,000,000 shares authorized; 47,291,463 shares issued, 45,286,640 shares outstanding as of June 30, 2020 and 47,291,463 shares issued, 45,749,788 shares outstanding as of December 31, 2019		473			473
Class B Common stock - $0.01 par value, 20,000,000 shares authorized; NaN issued and outstanding at each of June 30, 2020 and December 31, 2019		-			-
Class C Common stock - $0.01 par value, 5,000,000 shares authorized; NaN issued and outstanding at each of June 30, 2020 and December 31, 2019		-			-
Preferred stock - $0.01 par value, 200,000 shares authorized; NaN issued and outstanding at each of March 31, 2021 and December 31, 2020								-			-
Class A Common stock - $0.01 par value, 100,000,000 shares authorized; 47,291,463 shares issued, 42,917,335 shares outstanding as of March 31, 2021 and 47,291,463 shares issued, 43,256,828 shares outstanding as of December 31, 2020								473			473
Class B Common stock - $0.01 par value, 20,000,000 shares authorized; NaN issued and outstanding at each of March 31, 2021 and December 31, 2020								-			-
Class C Common stock - $0.01 par value, 5,000,000 shares authorized; NaN issued and outstanding at each of March 31, 2021 and December 31, 2020								-			-
Additional paid-in capital		1,340,526			1,353,729			1,334,415			1,362,510
Accumulated other comprehensive income		19,850			19,850			34,510			34,510
Retained earnings		984,316			778,833			1,658,573			1,488,031
Treasury stock - at cost; 2,004,823 and 1,541,675 shares as of June 30, 2020 and December 31, 2019, respectively		(164,847	)		(121,388	)
Treasury stock - at cost; 4,374,128 and 4,034,635 shares as of March 31, 2021 and December 31, 2020, respectively								(453,769	)		(367,132	)
Total Nexstar Media Group, Inc. stockholders’ equity		2,180,318			2,031,497			2,574,202			2,518,392
Noncontrolling interests		21,459			21,996			16,806			18,484
Total stockholders’ equity		2,201,777			2,053,493
Total liabilities and stockholders’ equity	$	13,540,056		$	13,989,737
Total stockholders' equity								2,591,008			2,536,876
Total liabilities and stockholders' equity							$	13,347,549		$	13,404,276

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

	Three Months Ended						Six Months Ended						Three Months Ended
	June 30,						June 30,						March 31,
	2020			2019			2020			2019			2021			2020
Net revenue	$	914,633		$	649,012		$	2,006,455		$	1,275,659		$	1,113,931		$	1,091,822
Operating expenses (income):
Direct operating expenses, excluding depreciation and amortization		416,639			296,044			861,698			588,907			449,392			445,059
Selling, general and administrative expenses, excluding depreciation and amortization		193,243			144,058			411,627			286,418			243,437			218,384
Amortization of broadcast rights		35,740			13,935			72,948			28,297			30,883			37,208
Amortization of intangible assets		69,512			36,357			140,095			73,095			73,687			70,583
Depreciation		35,770			28,090			71,176			55,527			39,468			35,406
Reimbursement from the FCC related to station repack		(25,716	)		(19,416	)		(38,474	)		(33,603	)		(5,415	)		(12,758	)
Loss (gain) on disposal of stations and entities, net		50			-			(7,025	)		-
Change in the estimated fair value of contingent consideration attributable to a merger		3,933			-			3,933			-
Gain on relinquishment of spectrum		(10,791	)		-			(10,791	)		-
Gain on disposal of stations and business units, net														(2,441	)		(7,075	)
Total operating expenses		718,380			499,068			1,505,187			998,641			829,011			786,807
Income from operations		196,253			149,944			501,268			277,018			284,920			305,015
Income (loss) on equity investments, net		11,332			(665	)		25,490			(1,156	)
Income on equity investments, net														29,808			14,158
Interest expense, net		(82,251	)		(51,363	)		(183,535	)		(104,320	)		(72,054	)		(101,284	)
Loss on extinguishment of debt		-			(2,026	)		(7,477	)		(3,724	)		(989	)		(7,477	)
Pension and other postretirement plans credit, net		10,762			1,400			21,524			2,800			17,657			10,762
Other (expenses) income, net		(549	)		91			315			91			(423	)		864
Income before income taxes		135,547			97,381			357,585			170,709			258,919			222,038
Income tax expense		(37,406	)		(26,646	)		(101,750	)		(43,087	)		(59,729	)		(64,344	)
Net income		98,141			70,735			255,835			127,622			199,190			157,694
Net loss (income) attributable to noncontrolling interests		1,454			(2,733	)		675			(4,728	)		1,717			(779	)
Net income attributable to Nexstar Media Group, Inc.	$	99,595		$	68,002		$	256,510		$	122,894		$	200,907		$	156,915

Net income per common share attributable to Nexstar Media Group, Inc.:
Basic	$	2.20		$	1.48		$	5.64		$	2.68		$	4.64		$	3.43
Diluted	$	2.13		$	1.42		$	5.43		$	2.57		$	4.42		$	3.30

Weighted average number of common shares outstanding:
Basic		45,267			46,090			45,483			45,938			43,297			45,702
Diluted		46,849			47,971			47,231			47,878			45,421			47,615

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN ~~STOCKHOLDERS’~~STOCKHOLDERS' EQUITY

											Accumulated																												Accumulated
	Class A				Additional						Other												Total			Class A						Additional							Other													Total
	Common Stock				Paid-In			Retained			Comprehensive			Treasury Stock						Noncontrolling			Stockholders’			Common Stock						Paid-In			Retained				Comprehensive				Treasury Stock						Noncontrolling			Stockholders’
	Shares		Amount		Capital			Earnings			Income (Loss)			Shares			Amount			interests			Equity			Shares			Amount			Capital			Earnings				Income (Loss)				Shares			Amount			interests			Equity
Balances as of March 31, 2020		47,291,463	$	473	$	1,333,717		$	910,063		$	19,850			(2,096,058	)	$	(170,957	)	$	22,913		$	2,116,059
Balances as of December 31, 2020																											47,291,463		$	473		$	1,362,510		$	1,488,031			$	34,510				(4,034,635	)	$	(367,132	)	$	18,484		$	2,536,876
Purchase of treasury stock																											-			-			-			-				-				(808,530	)		(121,011	)		-			(121,011	)
Stock-based compensation expense																											-			-			11,603			-				-				-			-			-			11,603
Vesting of restricted stock units and exercise of stock options																											-			-			(39,698	)		-				-				469,037			34,374			-			(5,324	)
Dividends declared on common stock ($0.70 per share)																											-			-			-			(30,365	)			-				-			-			-			(30,365	)
Contribution from a noncontrolling interest																											-			-			-			-				-				-			-			39			39
Net income (loss)																											-			-			-			200,907				-				-			-			(1,717	)		199,190
Balances as of March 31, 2021																											47,291,463		$	473		$	1,334,415		$	1,658,573			$	34,510				(4,374,128	)	$	(453,769	)	$	16,806		$	2,591,008


Balances as of December 31, 2019																											47,291,463		$	473		$	1,353,729		$	778,833			$	19,850				(1,541,675	)	$	(121,388	)	$	21,996		$	2,053,493
Purchase of treasury stock																											-			-			-			-				-				(950,000	)		(72,587	)		-			(72,587	)
Stock-based compensation expense		-		-		12,749			-			-			-			-			-			12,749			-			-			10,685			-				-				-			-			-			10,685
Vesting of restricted stock units and exercise of stock options		-		-		(5,940	)		-			-			91,235			6,110			-			170			-			-			(29,316	)		-				-				395,617			23,018			-			(6,298	)
Dividends declared on common stock ($0.56 per share)		-		-		-			(25,342	)		-			-			-			-			(25,342	)			-			-			-			(25,676	)			-				-			-			-			(25,676	)
Net income (loss)		-		-		-			99,595			-			-			-			(1,454	)		98,141
Balances as of June 30, 2020		47,291,463	$	473	$	1,340,526		$	984,316		$	19,850			(2,004,823	)	$	(164,847	)	$	21,459		$	2,201,777

Balances as of March 31, 2019		47,291,463	$	473	$	1,332,612		$	654,682		$	(14,316	)		(1,275,092	)	$	(86,146	)	$	11,705		$	1,899,010
Stock-based compensation expense		-		-		9,691			-			-			-			-			-			9,691
Vesting of restricted stock units and exercise of stock options		-		-		(5,246	)		-			-			86,739			4,765			-			(481	)
Dividends declared on common stock ($0.45 per share)		-		-		-			(20,738	)		-			-			-			-			(20,738	)
Contribution from a noncontrolling interest																											-			-			-			-				-				-			-			138			138
Disposal of an entity																											-			-			(1,381	)		(9	)			-				-			-			-			(1,390	)
Net income		-		-		-			68,002			-			-			-			2,733			70,735			-			-			-			156,915				-				-			-			779			157,694
Balances as of June 30, 2019		47,291,463	$	473	$	1,337,057		$	701,946		$	(14,316	)		(1,188,353	)	$	(81,381	)	$	14,438		$	1,958,217
Balances as of March 31, 2020																											47,291,463		$	473		$	1,333,717		$	910,063			$	19,850		��		(2,096,058	)	$	(170,957	)	$	22,913		$	2,116,059

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

Accumulated

Class A

Additional

Other

Total

Common Stock

Paid-In

Retained

Comprehensive

Treasury Stock

Noncontrolling

Stockholders’

Shares

Amount

Capital

Earnings

Income (Loss)

Shares

Amount

interests

Equity

Balances as of December 31, 2019

47,291,463

$
473

$
1,353,729

$
778,833

$
19,850

(1,541,675
)

$
(121,388
)

$
21,996

$
2,053,493

Purchase of treasury stock

-

-

-

-

-

(950,000
)

(72,587
)

-

(72,587
)
Stock-based compensation expense

-

-

23,434

-

-

-

-

-

23,434

Vesting of restricted stock units and
exercise of stock options

-

-

(35,256
)

-

-

486,852

29,128

-

(6,128
)
Dividends declared on common stock ($1.12 per share)

-

-

-

(51,018
)

-

-

-

-

(51,018
)
Contribution from a noncontrolling interest

-

-

-

-

-

-

-

138

138

Disposal of an entity

-

-

(1,381
)

(9
)

-

-

-

-

(1,390
)
Net income (loss)

-

-

-

256,510

-

-

-

(675
)

255,835

Balances as of June 30, 2020

47,291,463

$
473

$
1,340,526

$
984,316

$
19,850

(2,004,823
)

$
(164,847
)

$
21,459

$
2,201,777

Balances as of December 31, 2018

47,291,463

$
473

$
1,351,931

$
620,371

$
(14,316
)

(1,665,217
)

$
(105,685
)

$
16,210

$
1,868,984

Stock-based compensation expense

-

-

17,760

-

-

-

-

-

17,760

Vesting of restricted stock units and
exercise of stock options

-

-

(32,634
)

-

-

476,864

24,304

-

(8,330
)
Dividends declared on common stock ($0.90 per share)

-

-

-

(41,319
)

-

-

-

-

(41,319
)
Purchase of noncontrolling interest from a consolidated variable interest entity

-

-

-

-

-

-

-

(6,500
)

(6,500
)
Net income (loss)

-

-

-

122,894

-

-

-

4,728

127,622

Balances as of June 30, 2019

47,291,463

$
473

$
1,337,057

$
701,946

$
(14,316
)

(1,188,353
)

$
(81,381
)

$
14,438

$
1,958,217

	Three Months Ended March 31,
	2021			2020
Cash flows from operating activities:
Net income	$	199,190		$	157,694
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets		73,687			70,583
Amortization of broadcast rights		30,883			37,208
Depreciation of property and equipment		39,468			35,406
Stock-based compensation expense		11,603			10,685
Provision for bad debt		1,067			1,818
Amortization of debt financing costs, debt discounts and premium		3,694			4,636
Loss on extinguishment of debt		989			7,477
Deferred income taxes		(2,390	)		(13,011	)
Gain on disposal of stations and business units, net		(2,441	)		(7,075	)
Spectrum repack reimbursements		(5,415	)		(12,758	)
Payments for broadcast rights		(45,564	)		(51,783	)
Income on equity investments, net		(29,808	)		(14,158	)
Distribution from equity investments - return on capital		177,705			170,400
Other operating activities, net		1,687			(618	)
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Accounts receivable		(16,466	)		(7,268	)
Prepaid expenses and other current assets		162			(1,834	)
Other noncurrent assets		(1,515	)		214
Accounts payable		(1,835	)		(18,324	)
Accrued expenses and other current liabilities		(29,834	)		(10,102	)
Income tax payable		62,924			74,750
Other noncurrent liabilities		(19,536	)		(18,822	)
Net cash provided by operating activities		448,255			415,118
Cash flows from investing activities:
Purchases of property and equipment		(32,103	)		(60,134	)
Payments for acquisitions, net of cash acquired		-			(63,000	)
Proceeds from sale of stations and entities		2,500			362,804
Proceeds from resolution of acquired contingency		-			98,000
Spectrum repack reimbursements from the FCC		5,415			12,758
Other investing activities, net		1,381			601
Net cash provided by (used in) investing activities		(22,807	)		351,029
Cash flows from financing activities:
Repayments of long-term debt		(80,357	)		(457,328	)
Purchase of treasury stock		(121,011	)		(72,587	)
Common stock dividends paid		(30,365	)		(25,676	)
Payments for finance lease and capitalized software obligations		(1,354	)		(1,792	)
Cash paid for shares withheld for taxes		(8,122	)		(6,483	)
Proceeds from exercise of stock options		2,798			368
Other financing activities, net		39			(652	)
Net cash used in financing activities		(238,372	)		(564,150	)
Net increase in cash, cash equivalents and restricted cash		187,076			201,997
Cash, cash equivalents and restricted cash at beginning of period		169,309			248,678
Cash, cash equivalents and restricted cash at end of period	$	356,385		$	450,675
Supplemental information:
Interest paid	$	82,106		$	125,516
Income taxes paid, net of refunds	$	5,511		$	2,110
Non-cash investing and financing activities:
Accrued purchases of property and equipment	$	10,642		$	28,024
Noncash purchases of property and equipment	$	402		$	-
Right-of-use assets obtained in exchange for operating lease obligations	$	12,525		$	15,977

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

Six Months Ended

June 30,

2020

2019

Cash flows from operating activities:

Net income

$
255,835

$
127,622

Adjustments to reconcile net income to net cash provided by operating activities:

Amortization of intangible assets

140,095

73,095

Amortization of broadcast rights

72,948

28,297

Depreciation of property and equipment

71,176

55,527

Stock-based compensation expense

23,434

17,760

Provision for bad debt

10,372

4,185

Amortization of debt financing costs, debt discounts and premium

8,965

3,867

Loss on extinguishment of debt

7,477

3,724

Gain on asset disposal, net

(808
)

(156
)
Deferred income taxes

(11,580
)

6,063

Gain on relinquishment of spectrum

(10,791
)

-

Gain on disposal of stations and entities, net

(7,025
)

-

Change in the estimated fair value of contingent consideration attributable to a merger

3,933

-

Spectrum repack reimbursements

(38,474
)

(33,603
)
Payments for broadcast rights

(100,894
)

(28,300
)
(Income) loss on equity investments, net

(25,490
)

1,156

Distribution from equity investments - return on capital

197,092

-

Other operating activities, net

(2,247
)

(876
)
Changes in operating assets and liabilities, net of acquisitions and dispositions:

Accounts receivable

109,976

330

Prepaid expenses and other current assets

5,161

(345
)
Other noncurrent assets

12,134

(2,806
)
Accounts payable

13,263

2,227

Accrued expenses and other current liabilities

(92,197
)

(5,306
)
Income tax payable

104,612

(15,395
)
Other noncurrent liabilities

(29,669
)

(666
)
Net cash provided by operating activities

717,298

236,400

Cash flows from investing activities:

Purchases of property and equipment

(115,656
)

(71,468
)
Payments for acquisitions, net of cash acquired

(63,213
)

-

Proceeds from sale of stations and entities

362,803

-

Proceeds from resolution of acquired contingency

98,000

-

Spectrum repack reimbursements from the FCC

38,474

33,603

Proceeds from disposals of property and equipment

958

849

Proceeds received from corporate-owned life insurance policies

486

160

Net cash provided by (used in) investing activities

321,852

(36,856
)
Cash flows from financing activities:

Repayments of long-term debt

(470,319
)

(203,608
)
Payments for debt financing costs

(379
)

(78
)
Purchase of treasury stock

(72,587
)

-

Common stock dividends paid

(51,018
)

(41,319
)
Payments for finance lease and capitalized software obligations

(6,301
)

(5,007
)
Cash paid for shares withheld for taxes

(6,784
)

(9,813
)
Proceeds from exercise of stock options

656

1,483

Contribution from a noncontrolling interest

138

-

Purchase of noncontrolling interests

-

(6,393
)
Net cash used in financing activities

(606,594
)

(264,735
)
Net increase (decrease) in cash, cash equivalents and restricted cash

432,556

(65,191
)
Cash, cash equivalents and restricted cash at beginning of period

248,678

145,115

Cash, cash equivalents and restricted cash at end of period

$
681,234

$
79,924

Supplemental information:

Interest paid

$
171,348

$
98,103

Income taxes paid, net of refunds

$
7,686

$
52,419

Non-cash investing and financing activities:

Accrued purchases of property and equipment

$
26,296

$
23,087

Noncash purchases of property and equipment

$
15,885

$
-

Right-of-use assets obtained in exchange for operating lease obligations⁽¹⁾

$
21,852

$
114,203

~~The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.~~

As used in this Quarterly Report on Form 10-Q, “Nexstar” refers to Nexstar Media Group, Inc., ~~together with~~a Delaware corporation, and its consolidated wholly owned ~~subsidiaries (“Nexstar”)~~subsidiary, Nexstar Media Inc., a Delaware ~~corporation,~~corporation; the “Company” refers to Nexstar and the variable interest entities (“VIEs”) required to be consolidated in our financial statements; and all references to “we,” “our,” “ours,” and “us” refer to Nexstar.

Nexstar is a television broadcasting and digital media company focused on the acquisition, development and operation of television stations, ~~and~~ interactive community websites and digital media services. As of ~~June 30, 2020, Nexstar~~March 31, 2021, we owned, operated, programmed or provided sales and other services to ~~196~~198 full power television stations, including ~~those~~37 full power television stations owned by consolidated ~~variable interest entities (“VIEs”),~~VIEs, and 1 AM radio station in ~~114~~116 markets in 3839 states and the District of Columbia. The stations are affiliates of ABC, NBC, FOX, CBS, The CW, MNTV, and other broadcast television networks. As of ~~June 30, 2020,~~March 31, 2021, the stations reached approximately 39% of all U.S. television households (applying the Federal Communications Commission’s (“FCC”) ultra-high frequency (“UHF”) discount). Through various local service agreements, ~~Nexstar provided~~we provide sales, programming, and other services to ~~36 full power~~ television stations independently owned by ~~independent~~ third parties. Nexstar also owns NewsNation (formerly WGN ~~America,~~America), a live daily national newscast and a national general entertainment cable network, digital multicast network services, various digital products, services and content, a 31.3% ownership stake in Television Food Network, G.P. (“TV Food Network”), and a portfolio of real estate assets.

The Condensed Consolidated Financial Statements include the accounts of Nexstar and the accounts of ~~independently-owned~~independently owned VIEs for which ~~Nexstar is~~we are the primary beneficiary (See ~~Note 2—Variable~~“Variable Interest ~~Entities). Nexstar and the consolidated VIEs are collectively referred to as the “Company”~~Entities” section below). Noncontrolling interests represent the VIE owners’ share of the equity in the consolidated VIEs and are presented as a component separate from ~~Nexstar Media Group, Inc.~~Nexstar’s stockholders’ equity. All intercompany account balances and transactions have been eliminated in consolidation. Nexstar management evaluates each arrangement that may include variable interests and determines the need to consolidate an entity where it determines Nexstar is the primary beneficiary of a VIE in accordance with related authoritative literature and interpretive guidance.

The following are assets of consolidated VIEs, excluding intercompany amounts, that are not available to settle the obligations of Nexstar and the liabilities of consolidated VIEs, excluding intercompany amounts, for which their creditors do not have recourse to the general credit of Nexstar (in thousands):

The Company is leveraged, which makes it vulnerable to changes in general economic conditions. The Company’s ability to repay or refinance its debt will depend on, among other things, financial, business, market, competitive and other conditions, many of which are beyond the Company’s control, for instance, uncertainties surrounding the business outlook caused by Coronavirus Disease 2019 (“COVID-19”). In December ~~2019, COVID-19 was reported and has spread globally, including to every state in the United States. In March~~ 2020, the ~~World Health Organization declared~~U.S. Food and Drug Administration issued emergency use authorizations of two vaccines for the prevention of COVID-19, with a ~~pandemic and the United States government declared a national emergency with respect to COVID-19.~~third one approved in February 2021. COVID-19 has created and may continue to create significant uncertainty in global financial markets, which may reduce demand for the Company’s advertising, retransmission, and digital services, impact the productivity of its workforce, reduce its access to capital, and harm its business and results of operations.

~~The ongoing effect~~During the first quarter of 2021, the Company continued to be profitable and continued to generate positive cash flows from its operations, its current year to date financial results were higher than the comparable prior year, and its market capitalization continued to increase and exceed the carrying amount of its equity by a substantial amount. These favorable financial results are primarily attributable to the Company’s acquisitions of BestReviews, station WPIX and other stations in 2020 and the continuing signs of recovery from the effects of the COVID-19 pandemic, ~~had an adverse impact on~~driven by the ~~Company’s financial results mostly in the first part~~mass distribution of ~~the second quarter in 2020. This was followed by a significant improvement in the Company’s financial results in the remaining part of the second quarter in 2020 as certain areas~~COVID-19 vaccines throughout the United States ~~permitted~~and the re-opening of non-essential businesses. As of June 30, 2020, the Company remained profitable. Its current year results were also higher than prior year results primarily due to contribution from the acquisition of Tribune Media Company (“Tribune”) in September 2019.U.S. government’s stimulus programs. Overall, the ~~disruptions from~~ongoing COVID-19 pandemic did not have a material impact on the Company’s liquidity during the first quarter of 2021. As of ~~June 30, 2020,~~March 31, 2021, the Company’s unrestricted cash on hand amounted to ~~$664.6~~$339.8 million and the Company had a positive working capital of ~~$720.5~~$646.5 million, both increased from the December 31, ~~2019~~2020 levels of ~~$232.1~~$152.7 million and ~~$404.2~~$479.1 million, respectively. As of ~~June 30, 2020,~~March 31, 2021, the Company was also in compliance with its financial covenants contained in the amended credit agreements governing its senior secured credit facilities. The Company believes it has sufficient unrestricted cash on hand and has availability to access additional cash up to ~~$139.7~~$94.7 million and $3.0 million under the respective amended Nexstar and Mission Broadcasting, Inc. (“Mission”) revolving credit facilities (with a maturity date of October 2023) to meet its business operating requirements, its capital expenditures and to continue to service its debt for at least the next 12 months as of the filing date of this Quarterly Report on Form 10-Q. The Company also believes its leverage is well positioned to withstand the current challenges as the nearest maturity of its outstanding debt will not occur until October 2023.

The Condensed Consolidated Financial Statements as of ~~June 30, 2020~~March 31, 2021 and for the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ are unaudited. However, in the opinion of management, such financial statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of the financial information included herein in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. Results of operations for interim periods are not necessarily indicative of results for the full year. Estimates are used for, but are not limited to, allowance for doubtful accounts, valuation of assets acquired and liabilities assumed in business combinations, distribution revenue recognized, income taxes, the recoverability of goodwill, FCC licenses and long-lived assets, the recoverability of investments, the recoverability of broadcast rights and the useful lives of property and equipment and intangible assets. As of ~~June 30, 2020,~~March 31, 2021, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or ~~to revise~~revision of the carrying value of its assets or liabilities. However, these estimates and judgments may change as new events occur and additional information is obtained, which may result in changes being recognized in the Company’s consolidated financial statements in future periods. While the Company considered the effects of COVID-19 in its estimates and assumptions, due to the current level of uncertainty over the economic and operational impacts of COVID-19 on its business, there may be other judgments and assumptions that were not currently considered. Such judgments and assumptions could result in a meaningful impact on the Company’s consolidated financial statements in future periods. Actual results could differ from those estimates and any such differences may have a material impact on the Company’s condensed consolidated financial statements.

These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related Notes included in Nexstar’s Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. The balance sheet as of December 31, ~~2019~~2020 has been derived from the audited financial statements as of that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

~~The Company~~Nexstar may determine that an entity is a VIE as a result of local service agreements entered into with that entity. The term local service agreement generally refers to a contract between two separately owned television stations serving the same market, whereby the owner-operator of one station contracts with the owner-operator of the other station to provide it with administrative, sales and other services required for the operation of its station. Nevertheless, the owner-operator of each station retains control of and responsibility for the operation of its station, including ultimate responsibility over all programming broadcast on its station. A local service agreement can be (1) a time brokerage agreement (“TBA”) or a local marketing agreement (“LMA”) which allows Nexstar to program most of a station’s broadcast time, sell the station’s advertising time and retain the advertising revenue generated in exchange for monthly payments, based on the station’s monthly operating expenses, (2) a shared services agreement (“SSA”) which allows the Nexstar station in the market to provide services including news production, technical maintenance and security, in exchange for Nexstar’s right to receive certain payments as described in the SSA, or (3) a joint sales agreement (“JSA”) which permits Nexstar to sell certain of the station’s advertising time and retain a percentage of the related revenue, as described in the JSA.

Nexstar consolidates entities in which ~~Nexstar~~it is deemed under U.S. GAAP to have controlling financial interests for financial reporting purposes as a result of (1) local service agreements Nexstar has with the stations owned by these entities, (2) Nexstar’s ~~guarantees~~guarantee of the obligations incurred under ~~certain VIEs’~~Mission’s senior secured credit ~~facilities~~facility (see Note 9)8), (3) Nexstar having power over significant activities affecting these VIEs’ economic performance, including budgeting for advertising revenue, certain advertising sales and, in some cases, hiring and firing of sales force personnel and (4) purchase options granted by each such VIE which permit Nexstar to acquire the assets and assume the liabilities of ~~each of~~ these VIEs’ stations (except for Mission’s full power television stations KMSS, KPEJ and KLJB), subject to FCC consent.

The following table summarizes the various local service agreements Nexstar had in effect as of ~~June 30, 2020~~March 31, 2021 with its consolidated VIEs:

Nexstar’s ability to receive cash from ~~its~~Mission and the other consolidated VIEs is governed by the local service agreements. Under these agreements, Nexstar has received substantially all of the consolidated VIEs’ available cash, after satisfaction of operating costs and debt obligations. Nexstar anticipates it will continue to receive substantially all of the consolidated VIEs’ available cash, after satisfaction of operating costs and debt obligations. In compliance with FCC regulations for all the parties, each VIE maintains complete responsibility for and control over programming, finances, personnel and operations of its stations.

The carrying amounts and classification of the assets and liabilities, excluding intercompany amounts, of the VIEs which have been included in the Condensed Consolidated Balance Sheets were as follows (in thousands):

	June 30, 2020		December 31, 2019		March 31, 2021		December 31, 2020
Current assets:
Cash and cash equivalents	$	8,556	$	12,944	$	12,929	$	9,066
Accounts receivable, net		18,204		17,995		22,792		19,800
Prepaid expenses and other current assets		1,632		1,921		5,745		6,726
Total current assets		28,392		32,860		41,466		35,592
Property and equipment, net		42,212		42,308		63,399		61,938
Goodwill		135,634		135,634		152,058		153,704
FCC licenses		138,482		138,482		203,967		204,720
Network affiliation agreements, net		63,574		66,679		91,182		93,466
Other intangible assets, net		430		513		613		748
Other noncurrent assets, net		60,182		12,749		81,481		78,580
Total assets	$	468,906	$	429,225	$	634,166	$	628,748

Current liabilities:
Current portion of debt	$	3,663	$	3,433
Interest payable		486		834	$	460	$	495
Other current liabilities		16,945		19,653		31,694		30,335
Total current liabilities		21,094		23,920		32,154		30,830
Debt		239,645		241,190		327,000		327,000
Deferred tax liabilities		22,531		22,505		29,683		29,433
Other noncurrent liabilities		17,399		19,507		86,887		82,821
Total liabilities	$	300,669	$	307,122	$	475,724	$	470,084

Nexstar has an outsourcing agreement with Cunningham Broadcasting Corporation (“Cunningham”), which continues through December 31, ~~2020.~~2021. Under the outsourcing agreement, Nexstar provides certain engineering, production, sales and administrative services for WYZZ, the FOX affiliate in the Peoria, Illinois market, through WMBD, the Nexstar television station in that market. During the term of the outsourcing agreement, Nexstar retains the broadcasting revenue and related expenses of WYZZ and is obligated to pay a monthly fee to Cunningham based on the combined operating cash flow of WMBD and WYZZ, as defined in the agreement.

Nexstar has determined that it has a variable interest in WYZZ. Nexstar has evaluated its arrangements with Cunningham and has determined that it is not the primary beneficiary of the variable interest in this station because it does not have the ultimate power to direct the activities that most significantly impact the station’s economic performance, including developing the annual operating budget, programming and oversight and control of sales management personnel. Therefore, Nexstar has not consolidated WYZZ under authoritative guidance related to the consolidation of VIEs. Under the ~~local service~~outsourcing agreement for WYZZ, Nexstar pays for certain operating expenses, and therefore may have unlimited exposure to any potential operating losses. Nexstar’s management believes that Nexstar’s minimum exposure to loss under the WYZZ agreement consists of the fees paid to Cunningham. Additionally, Nexstar indemnifies the owners of Cunningham from and against all liability and claims arising out of or resulting from its activities, acts or omissions in connection with the agreement. The maximum potential amount of future payments Nexstar could be required to make for such indemnification is undeterminable at this time. There were no significant transactions arising from Nexstar’s outsourcing agreement with Cunningham.

On December 1, 2014, Nexstar met the accounting criteria for a controlling financial interest in Marshall Broadcasting Group, Inc. (“Marshall”) as a result of (i) local service agreements Nexstar had with the Marshall stations (JSAs and SSAs) as of that date, (ii) Nexstar’s guarantee as of that date of the obligations incurred under Marshall’s senior secured credit facility, and (iii) Nexstar having power as of that date over activities affecting Marshall’s significant economic performance, including management advice and consultation on broadcast matters, the ability to sell certain advertising on the Marshall stations, and the production of the Marshall stations’ news and other programming. Thus, Nexstar consolidated Marshall and its stations beginning on December 1, 2014. In December 2019, Marshall filed a voluntary petition for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. Effective on December 6, 2019, the bankruptcy court ordered the cancellation of certain executory contracts between Nexstar and Marshall, including the JSAs. As a result of Marshall’s filing for bankruptcy protection and the cancellation of the JSAs, Nexstar evaluated its remaining business arrangements with Marshall and determined that it still has a variable interest in the entity. The services under the SSAs are still active and Mission, a VIE that is consolidated by Nexstar, is a lender of Marshall. However, Nexstar also determined that it no longer had the power to direct the most significant economic activities of the entity and thus no longer meets the accounting criteria for a controlling financial interest in Marshall due to the bankruptcy court taking control of Marshall’s significant financial affairs. Therefore, in accordance with the applicable accounting standards, Nexstar deconsolidated Marshall’s assets, liabilities and equity effective in December 2019. Accordingly, the operating results and cash flows of Marshall for the three and six months ended June 30, 2020 were excluded and the operating results and cash flows of Marshall for the three and six months ended June 30, 2019 were included in the accompanying Condensed Consolidated Statements of Operations and Consolidated Statements of Cash Flows. The assets and liabilities of Marshall as of June 30, 2020 and December 31, 2019 were excluded in the accompanying Condensed Consolidated Balance Sheets.

On March 30, 2020, Mission entered into an asset purchase agreement to acquire certain assets of the 3 television stations currently owned by Marshall: KMSS serving the Shreveport, Louisiana market, KPEJ serving the Odessa, Texas market and KLJB serving the Davenport, Iowa market. The purchase price for the acquisition is approximately $49.0 million, which will be applied against Marshall’s existing loans payable to Mission on a dollar-for-dollar basis. The purchase price is subject to customary adjustments. ~~The proposed acquisition was approved by the Bankruptcy Court for the Southern District of Texas but is also subject to FCC and other customary approvals and is expected to close in 2020~~.

Basic income per share is computed by dividing the net income attributable to Nexstar by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed using the weighted-average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares are calculated using the treasury stock method. They consist of stock options and restricted stock units outstanding during the period and reflect the potential dilution that could occur if common shares were issued upon exercise of stock options and vesting of restricted stock units. The following table shows the amounts used in computing ~~the Company’s~~Nexstar’s diluted shares (in thousands):

	Three Months Ended				Six Months Ended				Three Months Ended
	June 30,				June 30,				March 31,
	2020		2019		2020		2019		2021		2020
Weighted average shares outstanding - basic		45,267		46,090		45,483		45,938		43,297		45,702
Dilutive effect of equity incentive plan instruments		1,582		1,881		1,748		1,940		2,124		1,913
Weighted average shares outstanding - diluted		46,849		47,971		47,231		47,878		45,421		47,615

During the three months ended ~~June 30,~~March 31, 2021 and 2020, there were ~~387,000~~0 stock options and restricted stock units that were ~~anti-dilutive, and NaN during the three months ended June 30, 2019.~~anti-dilutive.

For the six months ended June 30, 2020 and 2019, stock options and restricted stock units to acquire a weighted average of 193,000 shares and 15,000 shares of Class A common stock, respectively, were excluded from the computation of diluted earnings per share because their impact would have been anti-dilutive.

Certain prior year financial statement amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or stockholders’ equity as previously reported.

~~In April 2019, the~~ ~~Financial Accounting Standards Board (FASB) issued~~ ~~Accounting Standards Update (~~ASU) 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which provided certain improvements to ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” and ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” As the Company has adopted ASU 2016-01 and ASU 2017-12, the improvements in ASU 2019-04 are effective for fiscal years beginning after December 15, 2019, and the interim periods within those fiscal years. The Company adopted this guidance concurrent with our adoption of ASU 2016-13 effective January 1, 2020. The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures and no cumulative-effect adjustment was required.

In March 2019, the FASB issued ASU 2019-02, “Entertainment-Films-Other Assets-Film Costs (Subtopic 926-20) and Entertainment-Broadcasters-Intangibles-Goodwill and Other (Subtopic 920-350).” The standard requires production costs of episodic television series to be capitalized as incurred, which aligns the guidance with the accounting for production costs of films. The guidance also provides that capitalized costs associated with films and license agreements will be tested for impairment based on the lower of unamortized cost or fair value, as opposed to the existing guidance where the impairment test is based on estimated net realizable value, and also includes additional disclosure requirements. The standard should be applied prospectively. The Company ~~adopted this standard effective January 1, 2020. The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures~~.

In October 2018, the FASB issued ASU 2018-17, “Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities.” The standard provides guidance for determining whether a decision-making fee is a variable interest and requires reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in GAAP). The Company adopted this standard effective January 1, 2020. The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures.

~~In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820),”~~ which removes, modifies and adds to the disclosure requirements on fair value measurements in Topic 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company adopted this standard effective January 1, 2020. The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures.

In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20),” which removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and adds additional disclosures. The standards are effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The updated standard should be applied on a retrospective basis. The Company early adopted this standard effective January 1, 2020. The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures.

~~In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326),”~~ which requires measurement and recognition of expected credit losses for financial assets held. The standard is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the standard is effective. The Company adopted this standard effective January 1, 2020. The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosure and no cumulative-effect adjustment was required.

~~During the three and six months ended June 30, 2020, in connection with the Company’s estimate of allowance for doubtful accounts,~~ due to the expected loss from future payments as a result of economic uncertainty arising from the negative effects which the COVID-19 pandemic has had on the United States economy and financial markets, the Company ~~recorded bad debt expense of $8.6 million and $10.4 million, respectively, and increased the allowance for doubtful accounts to $27.0 million in its Condensed Consolidated Financial Statements.~~

On May 21, 2020, the SEC issued Final Rule Release No. 33-10786, “Amendments to Financial Disclosures about Acquired and Disposed Businesses” (“SEC Rule 33-10786”), which amends the disclosure requirements applicable to acquisitions and dispositions of businesses to improve the financial information provided to investors, facilitate more timely access to capital, and reduce the complexity and costs to prepare disclosure. ~~The~~ SEC Rule 33-10786, ~~amends,~~ among other things, (i) amends the tests used to determine significance and ~~expand~~expands the use of proforma financial information; (ii) ~~revise~~revises the proforma information requirements; (iii) ~~reduce~~reduces the maximum number of years for which financial statements under Regulation S-X are required to two years; (iv) ~~permit~~permits abbreviated financial statements for certain acquisitions; (v) ~~modify~~modifies the disclosure requirements relating to the aggregate effect of acquisitions for which financial statements are not required; and (vi) ~~conform~~conforms the significance threshold and tests on both disposed and acquired ~~business.~~businesses. The ~~amendments are~~Company adopted SEC Rule 33-10876 effective January 1, ~~2021, but early compliance is permitted.~~2021. The ~~Company~~ ~~does~~adoption did not ~~expect the standard to~~ have a material impact on ~~its~~the Company’s Condensed Consolidated Financial ~~Statements~~Statements.

In January 2020, FASB issued ASU 2020-01, “Investments—Equity securities (Topic 321)” (“ASU 2020-01”), which clarifies the interaction of the accounting for equity securities under Topic 321 and investments under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The amendments in ASU 2020-01 clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon ~~its adoption~~discontinuing the equity method. The amendments in ASU 2020-01 are effective for all entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company adopted ASU 2020-01 effective January 1, ~~2021~~2021. The adoption did not have a material impact on the Company’s Condensed Consolidated Financial Statements.

In December 2019, the FASB issued ASU 2019-12, “.Income taxes (Topic 740)—Simplifying the accounting for income taxes” (“ASU 2019-12”),which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The Company adopted this standard effective January 1, 2021. The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements.

On November 19, 2020, the SEC issued Final Rule Release 33-10890, “Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information” (“SEC Rule 33-10890”), which amends certain sections of Regulation S-K to modernize, simplify, and enhance Management’s Discussion and Analysis (“MD&A”), streamline supplementary financial information and eliminate the requirement to provide certain selected financial data. Key changes include: (i) enhancement and clarification of the disclosure requirements for liquidity and capital resources; (ii) elimination of five years of Selected Financial Data; (iii) replacement of the current requirement for two years of quarterly tabular disclosure only when there are material retrospective changes; (iv) codification of prior SEC guidance on critical accounting estimates; (v) elimination of tabular disclosure of contractual obligations; and (vi) confirming amendments for foreign private issuers. SEC Rule 33-10890 was effective on February 10, 2021. Registrants are required to comply with the new rules beginning with the first fiscal year ending on or after August 9, 2021. Registrants may early adopt the amended rules at any time after the effective date (on an item-by-item basis), as long as they provide disclosure responsive to an amended item in its entirety. The Company is currently assessing the potential impacts the adoption of SEC Rule 33-10890 may have on its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q upon its adoption.

In March 2020, FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848)” (“ASU 2020-04”), which provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in ASU 2020-04 are effective through December 31, 2022. The Company is currently assessing the potential impacts the adoption of ASU 2020-04 may have on its Condensed Consolidated Financial Statements upon its adoption.

~~In January 2020, FASB issued ASU 2020-01, “~~Investments—Equity securities (Topic 321)” (“ASU 2020-01”), which clarifies the interaction of the accounting for equity securities under Topic 321 and investments under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The amendments in ASU 2020-01 clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. ~~The amendments in ASU 2020-01 are effective for all entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted.~~ ~~The Company~~ ~~does not expect the standard to have a material impact~~ ~~on its Condensed Consolidated Financial Statements upon its adoption effective January 1, 2021~~.

~~In December 2019, the FASB issued ASU 2019-12, “Income taxes (Topic 740)—Simplifying the accounting for income taxes” (“ASU 2019-12”),~~which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020 (January 1, 2021 for the Company). Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on its Condensed Consolidated Financial Statements upon its adoption effective January 1, 2021.

During the three months ended March 31, 2021, there were no acquisitions and no significant dispositions. There were also no significant measurement period adjustments in 2021 related to acquisitions completed in 2020 (See Note 4).

On January 27, 2020, Nexstar ~~and~~ acquired from Sinclair Broadcast Group, Inc. (“Sinclair”) ~~resolved the outstanding lawsuit between Tribune and Sinclair. Tribune was acquired by Nexstar on September 19, 2019 (the “Merger”). As part of the resolution,~~ ~~Nexstar acquired from Sinclair~~ certain non-license assets associated with television station KGBT-TV in the Harlingen-Weslaco-Brownsville-McAllen,, Texas market for $17.9 million in cash ~~(see Note 15, “Commitment and Contingencies,” “Termination of Tribune and Sinclair Merger Agreement” for additional information with respect to this litigation resolution).~~funded by cash on hand.

On March 2, 2020, Nexstar ~~completed~~acquired the ~~acquisition of~~ Fox affiliate television station WJZY and ~~MyNetworkTV~~the MNTV affiliate television station WMYT in the Charlotte, NC market from Fox Television Stations, LLC (“Fox”), a Delaware limited liability company, for $45.3 million in cash. This acquisition allowed Nexstar’s ~~entrance~~entry into this market. Simultaneous with this acquisition, Nexstar sold certain of its television stations to Fox as described in more detail in “2020 Nexstar Dispositions” below.

~~Subject to final determination, which is expected to occur within twelve months of the acquisition dates, the provisional~~The fair values of the assets acquired and liabilities assumed associated with the ~~KGBT, WJZY, and WMYT~~above acquisitions in the first quarter of 2020 are as follows (in thousands):

Assets acquired
Prepaid expenses and other current assets	$	261		$	261
Broadcast rights		3,693			3,693
Property and equipment		18,806			18,806
FCC licenses		15,917			15,917
Network affiliation agreements		18,479			18,479
Goodwill		4,340			4,340
Other intangible assets		5,458			5,458
Other noncurrent assets		95			95
Total assets acquired		67,049			67,049
Less: Broadcast rights payable		(3,691	)		(3,691	)
Accrued expenses and other current liabilities		(145	)		(144	)
Net assets acquired	$	63,213
Total asset acquired				$	63,214

The fair value assigned to goodwill is attributable to future expense reductions utilizing management’s leverage in programming and other station operating costs. The goodwill and FCC licenses are deductible for tax purposes. The intangible assets related to the network affiliation agreements are amortized over 15 years. Other intangible assets are amortized over an estimated weighted average useful life of 10 years.

The stations’ combined net revenue of ~~$23.1~~$7.7 million and operating income of ~~$7.9~~$4.0 million from the respective ~~stations’~~ acquisition dates to ~~June 30,~~March 31, 2020 have been included in the accompanying Condensed Consolidated Statements of Operations. Transaction costs relating to these acquisitions were not significant during the ~~six~~three months ended ~~June 30, 2020.~~March 31, 2020.

Pro forma information for these acquisitions has not been provided given that these acquisitions are not significant pursuant to Rule 1-02 of Regulation S-K and that the Company believes that the impact of the historical financials for financial reporting purposes, both individually and in aggregate, on the Company’s revenue, operating income, net income, and earnings per share is not material.

On January 14, 2020, ~~the Company~~Nexstar sold its sports betting information website business to Star Enterprises Ltd., a subsidiary of Alto Holdings, Ltd., for a net consideration of $12.9 million (net of $2.4 million cash balance of this business that was transferred to the buyer upon sale). ~~Nexstar recognized a $2.4 million gain on disposal of this business.~~

On March 2, 2020, Nexstar completed the sale of Fox affiliate television station KCPQ and ~~MyNetworkTV~~MNTV affiliate television station KZJO in the Seattle, WA market, as well as Fox affiliate television station WITI in the Milwaukee, WI market, to Fox for approximately $349.9 million in cash, including working capital adjustments. ~~Nexstar recognized a $4.7 million net gain on disposal of these stations~~. The proceeds from the sale of the stations were partially used to prepay ~~the Company’s~~a portion of Nexstar’s term loans (see Note 9)8).

Nexstar recognized a $7.1 million net gain from disposal of these stations and business. The net gain that resulted from ~~the~~these divestitures ~~of stations and other business~~ was recorded in the ~~(Gain) loss~~Gain on disposal of stations and entities, net in the accompanying Condensed Consolidated Statements of ~~Operations.~~

~~Pro forma information~~Operations for the above acquisitions and dispositions has not been provided as the Company believes that the impact of the historical financials for financial reporting purposes, both individually and in aggregate, to the Company’s revenue, operating income, net income, and earnings per share is not material.

On September 19, 2019, Nexstar completed its acquisition of Tribune pursuant to a merger agreement. In 2020, Nexstar recorded a measurement period adjustment in connection with this acquisition. The measurement period is attributable to a cash consideration that Nexstar received to settle an existing lawsuit before Nexstar acquired Tribune. See Note 4 for additional information.

On January 27, 2020, Sinclair agreed to sell to Nexstar television station WDKY-TV in the Lexington, KY market (see Note 15, “Commitment and Contingencies”). On July 15, 2020, Nexstar entered into a definitive agreement with Sinclair to acquire this station for $18.0 million in cash, subject to working capital adjustments. See Note 17 for additional information.

Onthree months ended March 30, 2020, Mission, a VIE consolidated by Nexstar, entered into an asset purchase agreement to acquire certain assets of the three television stations currently owned by Marshall: KMSS serving the Shreveport, Louisiana market, KPEJ serving the Odessa, Texas market and KLJB serving the Davenport, Iowa market. The purchase price for the acquisition is approximately $49.0 million, which will be applied against Marshall’s existing loans payable to Mission on a dollar-for-dollar basis. The purchase price is subject to customary adjustments. The proposed acquisition was approved by the Bankruptcy Court for the Southern District of Texas but is also subject to FCC and other customary approvals and is expected to close in31, 2020.

~~On July 8, 2020, Nexstar assigned to Mission its option to purchase the CW affiliate WPIX in the New York, NY market from~~ ~~The E.W. Scripps Company (“Scripps”)~~. On the same date, Mission notified Scripps of its exercise of the option to purchase the station for a purchase price of $75.0 million, subject to customary adjustments, plus accrued interest in accordance with the option agreement. See Note 17 for additional information.

Intangible assets subject to amortization consisted of the following (in thousands):

	Estimated	June 30, 2020							December 31, 2019							Estimated	March 31, 2021							December 31, 2020
	useful life,			Accumulated							Accumulated					useful life,			Accumulated							Accumulated
	in years	Gross		Amortization			Net		Gross		Amortization			Net		in years	Gross		Amortization			Net		Gross		Amortization			Net
Network affiliation agreements	15	$	3,065,097	$	(781,014	)	$	2,284,083	$	3,223,906	$	(691,640	)	$	2,532,266	15	$	3,125,147	$	(922,471	)	$	2,202,676	$	3,125,320	$	(875,037	)	$	2,250,283
Other definite-lived intangible assets	1-20		962,101		(278,285	)		683,816		961,350		(233,996	)		727,354	1-20		968,000		(303,394	)		664,606		1,012,797		(323,879	)		688,918
Other intangible assets		$	4,027,198	$	(1,059,299	)	$	2,967,899	$	4,185,256	$	(925,636	)	$	3,259,620		$	4,093,147	$	(1,225,865	)	$	2,867,282	$	4,138,117	$	(1,198,916	)	$	2,939,201

The following table presents the Company’s estimate of amortization expense for the remainder of ~~2020,~~2021, each of the five succeeding years ended December 31 and thereafter for definite-lived intangible assets as of ~~June 30, 2020~~March 31, 2021 (in thousands):

Remainder of 2020	$	136,883
2021		267,259
Remainder of 2021			$	217,413
2022		264,914		283,663
2023		262,194		281,008
2024		260,714		279,842
2025				275,710
Thereafter		1,775,935		1,529,646
	$	2,967,899	$	2,867,282

The amounts recorded to goodwill and FCC licenses were as follows (in thousands):

Goodwill

FCC Licenses

Accumulated

Accumulated

Gross

Impairment

Net

Gross

Impairment

Net

Balances as of December 31, 2019

$
3,129,169

$
(132,294
)

$
2,996,875

$
2,968,875

$
(47,410
)

$
2,921,465

Current year acquisitions (See Note 3)

4,340

-

4,340

15,917

-

15,917

Current year divestitures (See Note 3)

(48,429
)

-

(48,429
)

(104,308
)

-

(104,308
)
Measurement period adjustments related to Nexstar and Tribune merger

(72,111
)

-

(72,111
)

-

-

-

Balances as of June 30, 2020

$
3,012,969

$
(132,294
)

$
2,880,675

$
2,880,484

$
(47,410
)

$
2,833,074

	Goodwill									FCC Licenses
				Accumulated									Accumulated
	Gross			Impairment			Net			Gross			Impairment			Net
Balances as of December 31, 2020	$	3,116,302		$	(132,294	)	$	2,984,008		$	2,957,114		$	(47,410	)	$	2,909,704
Current year divestitures		(42,475	)		42,475			-			-			-			-
Measurement period adjustments		(1,501	)		-			(1,501	)		(753	)		-			(753	)
Balances as of March 31, 2021	$	3,072,326		$	(89,819	)	$	2,982,507		$	2,956,361		$	(47,410	)	$	2,908,951

In January 2021, Nexstar sold certain of its digital businesses’ assets for a nominal price. As such, the gross amount of goodwill of $42.5 million and related accumulated impairment for the same amount were written off. The resulting gain from this disposition was not material.

During the three and six months ended 2020, Nexstar recorded a measurement period adjustment related to its acquisition of Tribune in September 2019. The measurement period adjustment is primarily attributable to a $98.0 million cash consideration received by Nexstar (asset acquired) to settle an existing lawsuit between Tribune and Sinclair on January 27, 2020. The settlement resulted in a recognition of an income tax payable of $25.0 million and a decrease in goodwill of $73.0 million. See Note 15: Commitments and Contingencies~~—Termination of Tribune and Sinclair Merger Agreement for additional information.~~

The measurement period adjustments recognized during the three and six months ended June 30, 2020 had no impact on the Company’s Condensed Consolidated Statements of Operations in the prior year and had no significant impact in the current year.

During the first ~~and second quarters~~quarter of ~~2020,~~2021, the Company evaluated the ~~changes~~ongoing impact of the COVID-19 pandemic and whether a change in facts and circumstances occurred and ~~general market declines resulting from the COVID-19 pandemic, including their impact on its current operating results and whether~~triggered an impairment ~~triggering~~ event ~~has occurred~~ on its indefinite-lived intangible assets, long-lived assets (including finite-lived intangible assets) and reporting units with goodwill. Based on the results of the evaluation, the Company concluded that, as of ~~June 30, 2020, there were~~March 31, 2021, no impairment triggering events ~~that~~had occurred on these assets mainly because as of this date, the ~~Company’s~~Company continued to be profitable and continued to generate positive cash flows from its operations, its current year to date financial results were higher than the comparable prior year, and its market capitalization ~~exceeded~~continued to increase and exceed the carrying amount of its equity by a substantial amount. ~~Despite~~These favorable financial results are primarily attributable to the ~~adverse~~Company’s acquisitions of BestReviews, station WPIX and other stations in 2020 and the continuing signs of recovery from the effects of the COVID-19 inpandemic, driven by the ~~Company’s financial results, mostly in the first part~~mass distribution of ~~second quarter of 2020, there were significant improvements in the Company’s financial results in the remaining part of the quarter as certain areas~~COVID-19 vaccines throughout the United States ~~permitted~~and the re-opening of non-essential businesses. In the second quarter of 2020 and on a year to date basis, the Company remained profitable. There were also no material changes in its customers mix, including advertisers, multichannel video programming distributors and online video distributors. Due toU.S. government’s stimulus programs. However, given the continued ~~impact of~~uncertainties caused by the COVID-19 pandemic, ~~subsequent to June 30, 2020,~~ the Company will continue to evaluate its indefinite-lived intangible assets, long-lived assets and goodwill for impairment and further assess if an impairment triggering event ~~will occur~~has occurred in ~~the~~ future periods. Any ~~further~~significant adverse ~~impact of COVID-19 or the general market conditions~~changes in future periods to the Company’s operating results or to the general market conditions could reasonably be expected to negatively impact the fair value of ~~the Company’s~~its indefinite-lived intangible assets and its reporting units as well as the recoverability of its long-lived assets and may result in future impairment charges which could be material.

~~Assets held for sale in the~~The Company’s ~~Condensed Consolidated Balance Sheets~~investments and their book value balances consisted of the following (in thousands):

In ~~January 2020, management deferred~~the first quarter of 2021, the Company received cash distributions from its ~~planned disposition of certain non-depreciable real estate property located~~equity method investments, primarily from its investment in ~~Chicago with a carrying amount of $236.0 million. In December 2019,~~TV Food Network, as discussed below.

During the ~~asset was previously classified as held for sale. The decision to defer~~three months ended March 31, 2021, the ~~sale effort was driven by current uncertainties~~income (loss) on equity method investments, net reported in the local government’s policies around property taxes which could impact a potential buyer’s perception of the property’s fair market value. Because the property is land with no limited useful life, management believes that, as of June 30, 2020, the fair value exceeded its carrying value and there was no impairment. As a result of this development, the property no longer meets the criteria of classifying as held for sale as it is not probable to sell the property within one year. Thus, the Company reclassified this asset from held for sale to property, plant and equipment (held and used) in the accompanyingCompany’s unaudited Condensed Consolidated ~~Balance Sheets as~~Statements of ~~June 30, 2020. The reclassification of the land property did not impact the Company’s results of operations during the three and six months ended June 30, 2020.~~

The Company’s equity method investments primarily included Nexstar’s investment in TV Food Network in which Nexstar has an ownership stake of 31.3%. Nexstar’s partner in TV Food Network is Discovery, Inc., which owns 68.7% interest in TV Food Network and operates the network on behalf of the partnership. As of June 30, 2020, Nexstar’s investment in TV Food Network had a book value of $1.282 billion. The Company received cash distributions from TV Food Network totaling $26.7 million and $197.1 million during the three and six months ended June 30, 2020, respectively.

TV Food Network owns and operates “The Food Network,” a 24-hour lifestyle cable television channel focusing on food and related topics. TV Food Network also owns and operates “The Cooking Channel,” a cable television channel primarily devoted to cooking instruction, food information and other related topics. TV Food Network’s programming is distributed by cable and satellite television systems.

The partnership agreement governing TV Food Network provides that the partnership shall, unless certain actions are taken by the partners, dissolve and commence winding up and liquidating TV Food Network upon the first to occur of certain enumerated liquidating events, one of which is a specified date of December 31, 2020. The Company would be entitled to its proportionate share of distributions to partners in the event of a liquidation, which the partnership agreement provides would occur as promptly as is consistent with obtaining fair market value for the assets of TV Food Network. The partnership agreement also provides that the partnership may be continued or reconstituted in certain circumstances.

At acquisition date, the Company measured its estimated share of the differences between the estimated fair values and carrying values (the “basis difference”) of the investees’ tangible assets and amortizable intangible assets had the fair value of the investments been allocated to the identifiable assets of the investees in accordance with ASC Topic 805 “Business Combinations.” Additionally, the Company measured its estimated share of the basis difference attributable to investees’ goodwill. As a result of acquired investment in TV Food Network on September 19, 2019 through the Merger, Nexstar estimated a total of $853.2 million for its share of the basis difference attributable to investees’ amortizable intangible assets. Nexstar also estimated a basis difference of $500.4 million attributable to investees’ goodwill.

The Company amortizes its share of the basis differences attributable to tangible assets and intangible long-lived assets of investees, including TV Food Network, and records the amortization (the “amortization of basis difference”) as a reduction of income on equity investments, net in the ~~unaudited~~accompanying Condensed Consolidated Statements of Operations. The Company’s share in these basis differences and related amortization is primarily attributable to its investment in TV Food Network (discussed in more detail below).

Nexstar acquired its 31.3% equity investment in TV Food Network through its acquisition of Tribune Media Company (“Tribune”) on September 19, 2019. Nexstar’s partner in TV Food Network is Discovery, Inc. (“Discovery”), which owns a 68.7% interest in TV Food Network and operates the network on behalf of the partnership.

The partnership agreement governing TV Food Network provides that the partnership shall, unless certain actions are taken by the partners, dissolve and commence winding up and liquidating TV Food Network upon the first to occur of certain enumerated liquidating events, one of which is a specified date of December 31, 2022. Nexstar intends to renew its partnership agreement with Discovery for TV Food Network before expiration. In the event of a liquidation, Nexstar would be entitled to its proportionate share of distributions to partners, which the partnership agreement provides would occur as promptly as is consistent with obtaining fair market value for the assets of TV Food Network. The partnership agreement also provides that the partnership may be continued or reconstituted in certain circumstances.

As of ~~June 30, 2020,~~March 31, 2021, Nexstar’s investment in TV Food Network had a book value of $1.155 billion, compared to the ~~Company’s~~$1.302 billion as of December 31, 2020.

As of March 31, 2021, Nexstar had a remaining share in amortizable basis difference of $630.6 million related to its investment in TV Food Network. This amortizable basis difference had a weighted average useful life of approximately 5.3 years as of this date. As of December 31, 2020, Nexstar had a remaining share in amortizable basis difference of $667.6 million related to its investment in TV Food Network. During 2021, there was no change in Nexstar’s share in the basis difference related to ~~equity method investments, including~~the investee’s goodwill.

During the three months ended March 31, 2021, the Company received cash distributions from TV Food Network ~~totaled $739.7~~of $177.7 million, recognized income on equity of this investment of $67.5 million, and ~~has a weighted average remaining useful life~~recorded amortization of ~~approximately 6.4 years~~.

~~Income (loss) on equity investments, net reported in the Company’s unaudited Condensed Consolidated Statements~~basis difference (expense) related to this investment of ~~Operations consisted of the following (in thousands):~~$36.8 million.

Summarized financial information for TV Food Network is as follows (in thousands):

					Three Months Ended
	Three Months Ended		Six Months Ended		March 31,
	June 30, 2020		June 30, 2020		2021		2020
Net revenue	$	307,192	$	627,539	$	332,633	$	320,347
Costs and expenses		152,969		311,604		119,578		158,635
Income from operations		154,223		315,935		213,055		161,713
Net income		155,986		321,414		215,540		165,428
Net income attributable to Nexstar Media Group, Inc.		48,814		100,583		67,451		51,769

During the ~~second~~first quarter of ~~2020,~~2021, the Company evaluated its equity method investments for other-than-temporary impairment (“OTTI”) due to the ~~events and circumstances surrounding~~ongoing impact of the COVID-19 pandemic. Based on the results of the review, the Company determined that anthere were no negative facts associated with OTTI ~~had not occurred~~ as of ~~June 30, 2020.~~March 31, 2021. The Company may experience future declines in the fair value of its equity method investments, and it may determine an impairment loss will be required to be recognized in a future reporting period. Such determination will be based on the prevailing facts and circumstances, including those related to the reported results and financial statement disclosures of the investees as well as the general market conditions. The Company will continue to evaluate its equity method investments in future periods to determine if an OTTI has occurred.

Other equity investments are investments without readily determinable fair values. All of the Company’s other equity investments are ownership interests in private companies. These assets were recorded at cost, subject to periodic evaluation of the carrying values.

	June 30, 2020		December 31, 2019		March 31, 2021		December 31, 2020
Broadcast rights payable	$	110,680	$	120,165
Compensation and related taxes		78,594		88,372	$	74,955	$	104,133
Interest payable		77,379		88,600		54,138		67,885
Network affiliation fees		55,294		62,901		52,680		34,948
Other		118,152		181,765		142,977		100,226
	$	440,099	$	541,803	$	324,750	$	307,192

On January 17, 2017, Nexstar assumed Media ~~General’s~~ General, Inc.’s (“Media General”)pension and postretirement plan obligations upon consummation of the merger of the entities. As a result, Nexstar has a funded, qualified non-contributory defined benefit retirement plan which covers certain employees and former employees. Additionally, there are non-contributory unfunded supplemental executive retirement and ERISA excess plans which supplement the coverage available to certain executives. All of these retirement plans are frozen. Nexstar also has a retiree medical savings account plan which reimburses eligible retired employees for certain medical expenses and an unfunded plan that provides certain health and life insurance benefits to retired employees who were hired prior to 1992.

On September 19, 2019, Nexstar assumed Tribune’s pension and postretirement obligations upon consummation of the merger of the entities. As a result, Nexstar has a qualified and non-contributory defined benefit retirement ~~plan~~plans which ~~covers~~cover certain of Tribune’s employees and former employees. ~~This~~These retirement ~~plan is~~plans are frozen in terms of pay and ~~service. Nexstar also assumed 3 defined benefit pension plans (2 of which are frozen with the third~~service, except for a small plan representing 2% of the total Tribune ~~related~~ projected benefit ~~obligation) for Tribune’s other employees and former employees. These three plans are not material individually or in aggregate.~~obligations. Nexstar also provides postretirement health care and life insurance benefits to eligible employees (who retired prior to January 1, 2016) under a variety of plans.

The following tables provide the components of net periodic benefit cost (credit) for ~~the Company’s~~Nexstar’s pension and other postretirement benefit plans (“OPEB”) (in thousands):

	Media General											Tribune
	Pension Benefits						OPEB					Pension Benefits			OPEB
	Three Months Ended June 30,						Three Months Ended June 30,					Three Months Ended June 30,
	2020			2019			2020			2019		2020
Service cost	$	-		$	-		$	5		$	-	$	248		$	-
Interest cost		2,925			3,875			138			200		13,374			33
Expected return on plan assets		(4,925	)		(5,475	)		-			-		(22,341	)		-
Amortization of prior service costs		-			-			(13	)		-		-			-
Amortization of net loss		-			-			43			-		-			-
Net periodic benefit cost (credit)	$	(2,000	)	$	(1,600	)	$	173		$	200	$	(8,719	)	$	33
																	Media General
	Media General											Tribune					Pension Benefit Plans						OPEB
	Pension Benefits						OPEB					Pension Benefits			OPEB		Three Months Ended						Three Months Ended
	Six Months Ended June 30,						Six Months Ended June 30,					Six Months Ended June 30,					March 31,						March 31,
	2020			2019			2020			2019		2020					2021			2020			2021			2020
Service cost	$	-		$	-		$	10		$	-	$	496		$	-	$	-		$	-		$	3		$	5
Interest cost		5,850			7,750			276			400		26,748			66		1,850			2,925			80			138
Expected return on plan assets		(9,850	)		(10,950	)		-			-		(44,682	)		-		(4,450	)		(4,925	)		-			-
Amortization of prior service costs		-			-			(26	)		-		-			-		275			-			(13	)		(13	)
Amortization of net loss		-			-			86			-		-			-
Amortization of net (gain) loss																		-			-			103			43
Net periodic benefit cost (credit)	$	(4,000	)	$	(3,200	)	$	346		$	400	$	(17,438	)	$	66	$	(2,325	)	$	(2,000	)	$	173		$	173

~~For 2020,~~On March 11, 2021, the ~~Company’s cash contribution~~American Rescue Plan Act of 2021 (“ARPA”) was signed into law. The ARPA includes changes to the employer funding requirements for single-employer pension plans and is designed to reduce the amounts of required contributions as a relief. The ARPA also includes multi-employer pension plan funding relief but had no significant impact to us. The two key aspects of the ARPA funding relief for single-employer plans are (i) the extended amortization and “fresh start” of funding shortfalls and (ii) the extended funding interest rate stabilization. Nexstar has no funding shortfalls to amortize but utilized the extended funding interest rate stabilization on its pension benefit plans. This relief increased Nexstar’s funding target attainment to above 100%. As such, Nexstar is currently not required to make contributions to its qualified pension ~~plans and other postretirement~~ benefit plans ~~are forecasted to be $55.3 million and $3.0 million, respectively.~~ in 2021.

During the ~~six~~three months ended ~~June 30,~~March 31, 2020, ~~and 2019,~~ the Company contributed $5.7 million and $0 million, respectively, to its qualified pension plans. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law and includes a provision that allows employers to defer payment of contributions to U.S. defined benefit pension plans due in 2020 until January 1, 2021. The Company is currently evaluating whether it will defer a portion or all of the remaining cash contribution requirements of $49.6 million to its qualified pension plans ~~and $3.0 million to its other postretirement benefit plans pursuant to this provision of the CARES Act.~~.

The primary investment objective of the pension benefit plans is to build and ensure an adequate pool of assets to support the benefit obligations to participants, retirees and beneficiaries. To meet this objective, the pension benefit plans seek to earn a rate of return on assets greater than the liability discount rate, with a prudent level of risk and diversification. The current investment policy includes a strategy intended to maintain an adequate level of diversification, subject to normal portfolio risks. ~~As a result of the general market downturn in the first half of 2020 resulting from the COVID-19 pandemic, as of June 30, 2020, the fair value of the pension plans’ assets has declined.~~ While the Company continues to monitor the performance of the pension plans’ assets, the ~~declines as of June 30, 2020~~fluctuations resulting from the COVID-19 pandemic have not materially impacted the Company’s financial position or liquidity. To the extent that there is ~~further~~any material deterioration in plan assets, the Company’s pension benefit plans may require additional contributions and/or may negatively impact future pension credit or expense of the Company.

June 30, 2020

December 31, 2019

Term loans

$
5,444,386

$
5,914,703

5.625% Notes due 2024

900,000

900,000

5.625% Notes due 2027

1,785,000

1,785,000

Total outstanding principal

8,129,386

8,599,703

Less: unamortized financing costs and discount - Term Loans

(88,695
)

(104,281
)
Less: unamortized financing costs and discount - 5.625% Notes due 2024

(8,995
)

(9,955
)
Add: unamortized premium, net of financing costs - 5.625% Notes due 2027

6,372

7,121

Total outstanding debt

8,038,068

8,492,588

Less: current portion

(60,491
)

(109,310
)
Long-term debt, net of current portion

$
7,977,577

$
8,383,278

	March 31, 2021			December 31, 2020
Nexstar
Term Loan A, due October 26, 2023	$	485,400		$	485,400
Team Loan A, due September 19, 2024		620,493			625,850
Term Loan B, due January 17, 2024		799,992			874,992
Term Loan B, due September 18, 2026		2,644,315			2,644,315
5.625% Notes, due July 15, 2027		1,785,000			1,785,000
4.75% Notes, due November 1, 2028		1,000,000			1,000,000
Mission
Revolving loans, due October 26, 2023		327,000			327,000
Total outstanding principal		7,662,200			7,742,557
Less: unamortized financing costs and discount - Nexstar Term Loan A due 2023		(1,454	)		(1,584	)
Less: unamortized financing costs and discount - Nexstar Term Loan A due 2024		(6,599	)		(7,102	)
Less: unamortized financing costs and discount - Nexstar Term Loan B due 2024		(10,240	)		(12,136	)
Less: unamortized financing costs and discount - Nexstar Term Loan B due 2026		(48,760	)		(50,644	)
Add: unamortized premium, net of financing costs - Nexstar 5.625% Notes due 2027		5,805			5,997
Less: unamortized financing costs and discount - Nexstar 4.75% Notes due 2028		(8,845	)		(9,085	)
Total outstanding debt		7,592,107			7,668,003
Less: current portion		(24,804	)		(21,429	)
Long-term debt, net of current portion	$	7,567,303		$	7,646,574

During the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, Nexstar prepaid a total of ~~$230.0~~$75.0 million in principal balance under its ~~term loans,~~Term Loan B due 2024, funded by cash on hand. On March 9, 2020, Nexstar also made an additional principal prepayment of $200.0 million on its term loans pursuant to the mandatory prepayment requirement of the amended credit agreement of Nexstar Broadcasting, Inc. The mandatory prepayment resulted from the disposition of certain television station assets in the Seattle, WAhand, and Milwaukee, WI markets to Fox (see Note 3, Acquisitions and Dispositions). The total prepayments of term loans resulted in loss on extinguishment of debt of $7.5 million for the six months ended June 30, 2020, representing write-offs of unamortized debt financing costs and discounts.

~~During the six months ended June 30, 2020,~~ the Company also repaid scheduled principal maturities of ~~$40.3~~$5.4 million of its ~~term loans,~~Term Loan A due 2024, funded by cash on hand.

The Company had ~~$139.7~~$94.7 million and $3.0 million of ~~total~~ unused revolving loan commitments under the respective Nexstar and Mission senior secured credit facilities, all of which were available for borrowing, based on the covenant calculations as of ~~June 30, 2020.~~March 31, 2021. The Company’s ability to access funds under its senior secured credit facilities depends, in part, on its compliance with certain financial covenants. As of ~~June 30, 2020,~~March 31, 2021, the Company was in compliance with its financial covenants.

The Company’s credit facilities described above are collateralized by a security interest in substantially all the combined assets, excluding FCC licenses and the other assets of consolidated VIEs unavailable to creditors of Nexstar (See Note 2). Nexstar guarantees full payment of all obligations incurred under the Mission ~~and Shield~~ senior secured credit ~~facilities~~facility in the event of ~~their~~its default. Mission ~~and Nexstar Digital LLC (“Nexstar Digital”),~~is a ~~wholly-owned subsidiary of Nexstar, are both guarantors~~guarantor of Nexstar’s senior secured credit ~~facility. Mission is also a guarantor of~~facility, Nexstar’s ~~5.625%~~ ~~senior unsecured notes due 2024 (“5.625%~~ ~~Notes due 2024”) and Nexstar’s 5.625% unsecured notes due 2027 (“~~5.625% Notes due ~~2027”). Nexstar Digital does not guarantee any of the notes. Shield is not a guarantor of any debt within the group.~~2027 and Nexstar’s 4.750% Notes due 2028.

In consideration of Nexstar’s guarantee of the Mission senior secured credit facility, Mission has granted Nexstar purchase options, exclusive of stations KMSS, KPEJ and KLJB,to acquire the assets and assume the liabilities of each Mission station, subject to FCC consent. These option agreements, ~~(which~~which expire on various dates between 2021 and ~~2028)~~2028, are freely exercisable or assignable by Nexstar without consent or approval by Mission. The Company expects these option agreements to be renewed upon expiration.

The Nexstar credit agreement (senior secured credit facility) contains a covenant which requires Nexstar to comply with a maximum consolidated first lien net leverage ratio of 4.25 to 1.00. The financial covenant, which is formally calculated on a quarterly basis, is based on the combined results of the Company. The Mission ~~and Shield~~ amended credit ~~agreements do~~agreement does not contain financial covenant ratio requirements but dodoes provide for default in the event Nexstar does not comply with all covenants contained in its credit agreement. As of ~~June 30, 2020, the Company~~March 31, 2021, Nexstar was in compliance with its financial covenants.

The Company has operating and finance leases for office space, vehicles, tower facilities, antenna sites, ~~studio~~studios and other real estate properties and equipment. The Company’s leases have remaining lease terms of one month to 9493 years, some of which may include options to extend the leases from two to 99 years, and some of which may include options to terminate the leases within one year. The depreciable lives of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Lease contracts that the Company has executed but which have not yet commenced as of ~~June 30, 2020~~March 31, 2021 were not material and are excluded.

Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):

	Balance Sheet Classification	June 30, 2020			December 31, 2019			Balance Sheet Classification	March 31, 2021			December 31, 2020
Operating leases
Operating lease right-of-use assets, net	Other noncurrent assets, net	$	227,010		$	235,285		Other noncurrent assets, net	$	285,156		$	282,834
Current lease liabilities	Other current liabilities	$	34,845		$	35,043		Other current liabilities	$	35,842		$	35,850
Noncurrent lease liabilities	Other noncurrent liabilities	$	177,984		$	185,722		Other noncurrent liabilities	$	237,915		$	234,208

Finance leases
Finance lease right-of-use assets, net of accumulated depreciation of $2,983 as of June 30, 2020 and $2,526 as of December 31, 2019	Property, plant and equipment, net	$	8,007		$	8,138
Finance lease right-of-use assets, net of accumulated depreciation of $3,528 as of March 31, 2021 and $3,349 as of December 31, 2020								Property, plant and equipment, net	$	7,462		$	7,641
Current lease liabilities	Other current liabilities	$	972		$	900		Other current liabilities	$	1,000		$	1,003
Noncurrent lease liabilities	Other noncurrent liabilities	$	14,670		$	15,177		Other noncurrent liabilities	$	13,922		$	14,172

Weighted Average Remaining Lease Term
Operating leases		7.0 years			7.4 years				8.6 years			8.7 years
Finance leases		11.1 years			11.6 years				10.5 years			10.7 years
Weighted Average Discount Rate
Operating leases			5.2	%		5.3	%			5.3	%		5.4	%
Finance leases			5.7	%		5.7	%			5.7	%		5.7	%

Operating lease expense for the three months ended ~~June 30, 2020~~March 31, 2021 was ~~$11.6~~$13.7 million, of which ~~$6.0~~$6.4 million and ~~$5.6~~$7.3 million were included in Direct operating and Selling, general and administrative expenses, respectively, excluding depreciation and amortization, in the accompanying Condensed Consolidated Statements of Operations. Operating lease expense for the three months ended ~~June 30, 2019~~March 31, 2020 was ~~$5.3~~$12.2 million, of which ~~$3.1~~$6.2 million and ~~$2.2~~$6.0 million ~~are~~were included in Direct operating and Selling, general and administrative expenses, respectively, excluding depreciation and amortization, in the accompanying Condensed Consolidated Statements of Operations.

Operating lease expense for the six month ended June 30, 2020 was $23.6 million, of which $12.1 million and $11.5 million were included in the Direct operating and Selling, general and administrative expenses, respectively, excluding depreciation and amortization, in the accompanying Condensed Consolidated Statements of Operations. Operating lease expense for the six months ended June 30, 2019 was $10.8 million, of which $6.2 million and $4.7 million were included in Direct operating and Selling, general and administrative expenses, respectively, excluding depreciation and amortization, in the accompanying Condensed Consolidated Statements of Operations.

~~The depreciation expense and interest expense associated with finance leases during the three and six months ended June 30, 2020 and 2019 were not material.~~

Supplemental cash flow information related to leases was as follows (in thousands):

	Six Months Ended June 30,				Three Months Ended March 31,
	2020		2019		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	23,537	$	11,232	$	12,344	$	12,244
Operating cash flows from finance leases		454		478		215		228
Financing cash flows from finance leases		434		404		251		215

Future minimum lease payments under non-cancellable leases as of ~~June 30,~~March 31, 2020 were as follows (in thousands):

	Operating Leases			Finance Leases			Operating Leases			Finance Leases
Remainder of 2020	$	22,778		$	907
2021		42,151			1,843
Remainder of 2021							$	35,868		$	1,377
2022		39,278			1,803			49,630			1,803
2023		36,052			1,818			47,306			1,818
2024		33,386			1,833			44,366			1,833
2025								31,752			1,879
Thereafter		83,430			13,364			143,358			11,482
Total future minimum lease payments		257,075			21,568			352,280			20,192
Less: imputed interest		(44,246	)		(5,926	)		(78,523	)		(5,270	)
Total	$	212,829		$	15,642		$	273,757		$	14,922

The Company has various arrangements for which it is the lessor for the use of its tower space. These leases meet the criteria for operating lease classification, but the associated lease income is not material. As ~~part of the adoption,~~such, the Company ~~elected~~has applied the practical expedient to combine lease and non-lease components in its ~~lessor arrangements.~~arrangements as lessor.

The Company measures and records in its condensed consolidated financial statements certain assets and liabilities at fair value. ASC Topic 820, “Fair Value Measurement and Disclosures,” establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). This hierarchy consists of the following three levels:

Certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

The carrying values of cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, ~~broadcast rights,~~ accounts payable, and accrued expenses approximate fair value due to their ~~short term to maturity.~~short-term nature. Estimated fair values and carrying amounts of the Company’s financial instruments that are not measured at fair value on a recurring basis were as follows (in thousands):

⁽¹⁾ The fair value of senior secured credit facilities is computed based on borrowing rates currently available to the Company for bank loans with similar terms and average maturities. These fair value measurements are considered Level 3, as significant inputs to the fair value calculation are unobservable in the market.

⁽²⁾ The fair value of the Company’s fixed rate debt is estimated based on bid prices obtained from an investment banking firm that regularly makes a market for these financial instruments. These fair value measurements are considered Level 2, as quoted market prices are available for low volume trading of these securities.

During the three ~~and six~~ months ended ~~2020,~~March 31, 2021, there were no events or changes in circumstance that triggered an impairment to the Company’s significant assets, including equity method investments, indefinite-lived intangible assets, long-lived assets and goodwill. See Notes 4 and 65 for additional information.

On ~~April 26, 2018,~~September 1, 2020, Nexstar’s Board of Directors approved ~~$200~~an additional $300 million in Nexstar’s share repurchase authorization to repurchase its Class A common stock. On January 27, 2021, Nexstar’s Board of Directors also approved a new share repurchase program authorizing the Company to repurchase up to $1.0 billion of its Class A common stock. The new $1.0 billion share repurchase program increased the Company’s existing share repurchase authorization to a total capacity of $1.175 billion when combined with the remaining available amount under its prior authorization and before reduction for any repurchases in the first quarter of 2021. During the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, Nexstar repurchased a total of ~~950,000~~808,530 shares of its Class A common stock for ~~$72.6~~$121.0 million, funded by cash on hand. As of ~~June 30, 2020,~~March 31, 2021, the remaining available amount under the share repurchase authorization was ~~$84.2 million, net of all repurchases made.~~$1.054 billion.

Share repurchases may be made from time to time in open market transactions, block trades or in private transactions. There is no minimum number of shares that Nexstar is required to repurchase and the repurchase program may be suspended or discontinued at any time without prior notice.

~~Income tax expense was $101.8 million for the six months ended June 30,~~In 2020, compared to $43.1 million for the same period in 2019. The effective tax rates were 28.5% and 25.2% for each of the respective periods. The increase in the effective tax rate between the two periods was primarily due to nondeductible goodwill written off as a result of divestitures and a decrease in the deduction for excess tax benefits. The Company recognizedNexstar recorded an income tax expense of $8.1 million attributable to nondeductible goodwill written off as a result of ~~divestitures,~~the sale of stations to Fox, or a ~~2.3% increase~~3.7% decrease to the effective tax ~~rate.~~rate in 2021. Additionally, ~~the Company recognized~~certain state contingency reserves decreased as a result of audit settlements. This resulted in a decrease to income tax expense of $6.5 million in ~~the excess tax benefit related to stock-based compensation of $2.3 million~~2021, , or a ~~2.3% increase~~2.5% decrease to the effective tax ~~rate. These increases were offset by a 0.8% decrease~~rate in ~~the impact of permanent differences on the effective rate.~~2021.

The Company calculates its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income or loss and adjusts the provision for discrete tax items recorded in the period. Future changes in the forecasted annual income projections, including changes due to ~~the~~ongoing impact of the COVID-19 pandemic, could result in significant adjustments to quarterly income tax expense in future periods.

As ~~discussed in Note 2—Liquidity, the business disruption caused by COVID-19~~ had an adverse impact on the Company’s financial results mostly in the first part of the second quarter in 2020. This was followed by a significant improvement in the Company’s financial results in the remaining part of the second quarter in 2020 as certain areas throughout the United States permitted the re-opening of non-essential businesses. As of June 30, 2020, theThe Company also ~~remained profitable. The Company~~ considered the ongoing impact of COVID-19 ~~disruption~~ in its ability to realize deferred tax assets in the future and determined that such conditions did not change its overall valuation allowance positions. The U.S. signed into law on March 27, 2020 the CARES Act which includes various income tax provisions to help stabilize U.S. businesses. The CARES Act includes provisions to ease the limitation on deductible interest expense for 2019 and 2020 and enhance the utilization of net operating losses generated in tax years 2018-2020. The Company is currently evaluating the tax implications resulting from the CARES Act and continues to monitor any new legislation passed in response to COVID-19 to measure the federal and state effects where it has an income tax presence.

Television broadcasting is subject to the jurisdiction of the FCC under the Communications Act of 1934, as amended (the “Communications Act”). The Communications Act prohibits the operation of television broadcasting stations except under a license issued by the FCC and empowers the FCC, among other things, to issue, revoke and modify broadcasting licenses, determine the location of television stations, regulate the equipment used by television stations, adopt regulations to carry out the provisions of the Communications Act and impose penalties for the violation of such regulations. The FCC’s ongoing rule making proceedings could have a significant future impact on the television industry and on the operation of the Company’s stations and the stations to which it provides services. In addition, the U.S. Congress may act to amend the Communications Act or adopt other legislation in a manner that could impact the Company’s stations, the stations to which it provides services and the television broadcast industry in general.

The FCC has adopted rules with respect to the final conversion of existing low power and television translator stations to digital operation, which must be completed by July 2021.

The FCC is required to review its media ownership rules every four years and to eliminate those rules it finds no longer serve the “public interest, convenience and necessity.”

In August 2016, the FCC adopted a Second Report and Order (the “2016 Ownership Order”) concluding the agency’s 2010 and 2014 quadrennial reviews. The 2016 Ownership Order (1) retained the local television ownership rule and radio/television cross-ownership rule with minor technical modifications, (2) extended the ban on common ownership of two top-four television stations in a market to network affiliation swaps, (3) retained the ban on newspaper/broadcast cross-ownership in local markets while considering waivers and providing an exception for failed or failing entities, (4) retained the dual network rule, (5) made television JSA relationships attributable interests and (6) defined a category of sharing agreements designated as SSAs between commercial television stations and required public disclosure of those SSAs (while not considering them attributable).

The 2016 Ownership Order reinstated a previously adopted rule that attributed another in-market station toward the local television ownership limits when one station owner sells more than 15% of the second station’s weekly advertising inventory under a JSA. Parties to JSAs entered into prior to March 31, 2014 were permitted to continue to operate under those JSAs until September 30, 2025.

Nexstar and other parties filed petitions seeking reconsideration of various aspects of the 2016 Ownership Order. On November 16, 2017, the FCC adopted an order (the “Reconsideration Order”) addressing the petitions for reconsideration. The Reconsideration Order (1) eliminated the rules prohibiting newspaper/broadcast cross-ownership and limiting television/radio cross-ownership, (2) eliminated the requirement that eight or more independently-owned television stations remain in a local market for common ownership of two television stations in that market to be permissible (the “eight voices test”), (3) retained the general prohibition on common ownership of two “top four” stations in a local market but provided for case-by-case review, (4) eliminated the television JSA attribution rule, and (5) retained the SSA definition and disclosure requirement for television stations. These rule modifications took effect on February 7, 2018, when the U.S. Court of Appeals for the Third Circuit (the “Third Circuit”) denied a mandamus petition which had sought to stay their effectiveness. On September 23, 2019, however, the Third Circuit issued an opinion vacating the Reconsideration Order on the ground that the FCC had failed to adequately analyze the effect of the Reconsideration Order’s deregulatory rule changes on minority and woman ownership of broadcast stations. ~~The Third Circuit later denied petitions for~~ ~~en banc~~ ~~rehearing and its decision took effect on November 29, 2019.~~ On December 20, 2019, the FCC issued an order reinstating the local television ownership rule, the radio/television cross-ownership rule, the newspaper/broadcast cross-ownership rule and the television JSA attribution rule as they existed prior to the Reconsideration Order (including the 8 voices test with respect to local television ownership). On April 17, 2020, the FCC and a group of media industry stakeholders (including Nexstar) filed separate petitions for certiorari requesting that the U.S. Supreme Court review the Third Circuit’s decision. The Supreme Court granted certiorari on October 2, 2020. On April 1, 2021, the Supreme Court reversed the Third Circuit’s decision. The effect of the Supreme Court’s ruling will be for the FCC to reinstate the Reconsideration Order, including that order’s elimination of the newspaper/broadcast and radio/television cross-ownership rules, the eight voices test and the JSA attribution rule.

In December 2018, the FCC initiated its 2018 quadrennial review with the issuance of a Notice of Proposed Rulemaking. Among other things, the FCC seeks comment on all aspects of the local television ownership rule’s implementation and whether the current version of the rule remains necessary in the public interest. Comments and reply comments in the 2018 quadrennial review were filed in the second quarter of 2019. As of ~~June 30, 2020,~~March 31, 2021, the proceeding remains open.

The FCC’s media ownership rules limit the percentage of U.S. television households which a party may reach through its attributable interests in television stations to 39% on a nationwide basis. Historically, the FCC has counted the ownership of a UHF station as reaching only 50% of a market’s percentage of total national audience. On August 24, 2016, the FCC adopted a Report and Order abolishing this “UHF discount,” and that rule change became effective in October 2016. On April 20, 2017, the FCC adopted an order on reconsideration that reinstated the UHF discount, which became effective again on June 15, 2017. A federal court of appeals dismissed a petition for review of the discount’s reinstatement in July 2018. In December 2017, the FCC initiated a comprehensive rulemaking to evaluate the UHF discount together with the national ownership limit. Comments and reply comments were filed in 2018, and the proceeding remains open. Nexstar is in compliance with the 39% national cap limitation as calculated employing the UHF discount.

The FCC has repurposed a portion of the broadcast television spectrum for wireless broadband use. Pursuant to federal legislation enacted in 2012, the FCC conducted an incentive auction in 2016-2017 for the purpose of making additional spectrum available to meet future wireless broadband needs. Under the auction statute and rules, certain television broadcasters accepted bids from the FCC to voluntarily relinquish their spectrum in exchange for consideration, and certain wireless broadband providers and other entities submitted successful bids to acquire the relinquished television spectrum. Television stations that did not relinquish their spectrum were “repacked” into the frequency band still remaining for television broadcast use. NaN of Nexstar’s stations and 1 station owned by Vaughan, a consolidated VIE, accepted bids to relinquish their spectrum. On July 21, 2017, the Company received $478.6 million of gross proceeds from the FCC related to the incentive auction. These were recorded as liability to surrender spectrum ~~asset~~assets pending the relinquishment of spectrum assets or conversion from UHF to VHF. ~~Of the 11 total stations~~In 2017, 1 station that accepted ~~bids, 1 station~~a bid went off the air ~~in November 2017. The~~and the associated spectrum asset and liability to surrender spectrum, both amounting to $34.6 million, were ~~derecognized in the fourth quarter of 2017. The station~~derecognized. In 2018, 8 stations that went off the air did not have a significant impact on the Company’s financial results because it was located in a remote rural area of the country and the Company has other stations which serve the same area. Of the remaining 10 stations, 8accepted bids ceased broadcasting on their previous channels and implemented channel sharing agreements. As ~~a result,~~such, the associated spectrum asset and liability to surrender spectrum, both amounting to $314.1 million, were ~~derecognized in the second quarter of 2018. Of the two remaining stations,~~derecognized. In 2019, 1 station that accepted a bid moved to a VHF channel ~~in 2019~~ and vacated its former channel after moving to the VHF channel. ~~As such, the~~The associated spectrum asset and liability to surrender spectrum, both amounting to $52.0 million, were ~~derecognized in 2019.~~derecognized. The remaining station that accepted a bid moved to a VHF channel in April 2020 and vacated its former channel. As such, the associated spectrum asset of $67.2 million and liability to surrender spectrum of $78.0 million were derecognized ~~in the second quarter of 2020,~~ resulting in a non-cash gain on relinquishment of spectrum of $10.8 million.

The majority of the Company’s television stations did not accept bids to relinquish their television channels. Of those stations, 6174 full power stations owned by Nexstar and 17 full power stations owned by VIEs were assigned to new channels in the reduced post-auction television band. These ~~“repacked”~~“repack” stations have commenced operation on their new assigned channels and have ceased operating on their former channels. Congress has allocated up to an industry-wide total of $2.75 billion to reimburse television broadcasters, ~~multichannel video programming distributors (“MVPDs”)~~MVPDs and other parties for costs reasonably incurred due to the repack. These funds are not available to reimburse repacking costs for stations which ~~are surrendering~~surrendered their spectrum in exchange for consideration and ~~entering~~entered into channel sharing relationships. Broadcasters, MVPDs and other parties have submitted to the FCC estimates of their reimbursable costs, followed by subsequent requests for reimbursement of those costs. As of ~~December~~April 6, ~~2019,~~2021, verified cost estimates were ~~approximately $1.95~~over $2.216 billion, with ~~79 percent of the repack complete and~~additional reimbursements still to be made to repack stations as well as certain low power television and FM radio stations affected by the repack. As of ~~July 13, 2020,~~January 7, 2021, the ~~designated~~ FCC ~~deadline for repacked~~reported that all repack stations ~~to cease~~had ceased operating on their former channel ~~assignments, the FCC reported that over 99 percent of those stations had done so.~~assignments. This includes all ~~repacked~~repack stations owned by Nexstar and its VIEs, although the Company will continue to incur costs to convert ~~certain stations~~1 station from interim to permanent facilities on ~~their~~its new ~~channels.~~channel. During the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020, the Company spent a total of ~~$13.0~~ $4.4 million and ~~$29.9~~$16.9 million, respectively, in capital expenditures related to station repack which were recorded as assets under the property and equipment caption in the accompanying Condensed Consolidated Balance Sheets. During the three ~~and six~~ months ended ~~June 30, 2019, the Company spent a total of $22.6 million~~March 31, 2021 and $36.4 million, respectively, in capital expenditures related to station repack which were recorded as assets under the property and equipment caption in the accompanying Condensed Consolidated Balance Sheets. During the three and six months ended June 30, 2020, the Company received ~~$25.7~~$5.4 million and ~~$38.5~~$12.8 million, respectively, in reimbursements from the FCC related to these expenditures which were recorded as operating income in the accompanying Condensed Consolidated Statements of Operations. ~~During~~As of March 31, 2021, approximately $27.6 million of estimated remaining costs in connection with the ~~three and six months ended June 30, 2019,~~station repack are expected to be incurred by the Company, ~~received $19.4 million and $33.6 million, respectively, in reimbursements from the FCC related to these expenditures~~some or all of which ~~were recorded as operating income in the accompanying Condensed Consolidated Statements of Operations.~~will be reimbursable. The Company cannot yet determine if the FCC will be able to fully reimburse its repacking costs as this is dependent on certain factors, including the Company’s ability to incur repacking costs that are equal to or less than the FCC’s allocation of funds to the Company and whether the FCC will have available funds to reimburse the Company for additional repacking costs that it previously may not have anticipated. Whether the FCC will have available funds for additional reimbursements will also depend on the repacking costs that will be incurred by other broadcasters, MVPDs and other parties that are also seeking ~~reimbursements.~~reimbursements.

The reallocation of television spectrum to broadband use may be to the detriment of the Company’s investment in digital facilities, could require substantial additional investment to continue current operations, and may require viewers to invest in additional equipment or subscription services to continue receiving broadcast television signals. The Company cannot yet fully predict the impact of the incentive auction and subsequent repack on its business.

On March 3, 2011, the FCC initiated a Notice of Proposed Rulemaking which among other things asked for comment on eliminating the network non-duplication and syndicated exclusivity protection rules, which may permit MVPDs to import out-of-market television stations in certain circumstances. In March 2014, the FCC adopted a further notice of proposed rulemaking which sought additional comment on the elimination or modification of the network non-duplication and syndicated exclusivity rules. The FCC’s possible elimination or modification of the network non-duplication and syndicated exclusivity protection rules may affect the Company’s ability to sustain its current level of retransmission consent revenues or grow such revenues in the future and could have an adverse effect on the Company’s business, financial condition and results of operations. These proceedings remain open. The Company cannot predict the resolution of the FCC’s network non-duplication and syndicated exclusivity proposals or the impact of these proposals if they are adopted.

On December 5, 2014, federal legislation directed the FCC to commence a rulemaking to “review its totality of the circumstances test for good faith [retransmission consent] negotiations.” The FCC commenced this proceeding in September 2015 and comments and reply comments were submitted. In July 2016, the then-Chairman of the FCC publicly announced that the agency would not adopt additional rules in this proceeding. However, the proceeding remains open.

Further, ~~online video distributors (“OVDs”)~~OVDs have begun streaming broadcast programming over the Internet. In September 2014, the U.S. Supreme Court held that an OVD’s retransmissions of broadcast television signals without the consent of the broadcast station violate copyright holders’ exclusive right to perform their works publicly as provided under the Copyright Act. In December 2014, the FCC issued a Notice of Proposed Rulemaking proposing to interpret the term “MVPD” to encompass OVDs that make available for purchase multiple streams of video programming distributed at a prescheduled time and seeking comment on the effects of applying MVPD rules to such OVDs. Comments and reply comments were filed in 2015. Although the FCC has not classified OVDs as MVPDs to date, several OVDs have signed agreements for retransmission of local stations within their markets and others are actively seeking to negotiate such agreements.

Nexstar and its subsidiaries guarantee full payment of all obligations incurred under the Mission ~~and Shield~~ senior secured credit ~~facilities.~~facility. In the event that Mission ~~or Shield~~ is unable to repay amounts due, Nexstar will be obligated to repay such amounts. The maximum potential amount of future payments that Nexstar would be required to make under ~~these guarantees~~this guarantee would be generally limited to the ~~borrowings outstanding.~~outstanding principal amounts. As of ~~June 30, 2020,~~March 31, 2021, Mission had a maximum commitment of ~~$228.1~~$330.0 million under its ~~senior secured~~amended credit ~~facility,~~agreement, of which ~~$225.1~~$327.0 million principal balance of debt was outstanding. As of the same date, Shield had also used all of its commitment and had outstanding principal debt obligations of $21.2 million. Based on the terms of the credit agreements, Mission’s outstanding debt is due January 2024, and Shield’s outstanding debt is due October 2023.

In connection with certain agreements that the Company enters into in the normal course of its business, including local service agreements, business acquisitions and borrowing arrangements, the Company enters into contractual arrangements under which the Company agrees to indemnify the third-party to such arrangement from losses, claims and damages incurred by the indemnified party for certain events as defined within the particular contract. Such indemnification obligations may not be subject to maximum loss clauses and the maximum potential amount of future payments the Company could be required to make under these indemnification arrangements may be unlimited. Historically, payments made related to these indemnifications have been insignificant and the Company has not incurred significant costs to defend lawsuits or settle claims related to these indemnification agreements.

From time to time, the Company is involved in litigation that arises from the ordinary operations of business, such as contractual or employment disputes or other general actions. In the event of an adverse outcome of these proceedings, the Company believes the resulting liabilities would not have a material adverse effect on its financial condition or results of operations.

Local TV Advertising Antitrust Litigation—On March 16, 2018, a group of companies including Nexstar and Tribune (the “Defendants”) received a Civil Investigative Demand from the Antitrust Division of the DOJ regarding an investigation into the exchange of certain information related to the pacing of sales related to the same period in the prior year among broadcast stations in some DMAs in alleged violation of federal antitrust law. Without admitting any wrongdoing, some Defendants, including Tribune, entered into a proposed consent decree (referred to herein as the “consent decree”) with the DOJ on November 6, 2018. Without admitting any wrongdoing, Nexstar agreed to settle the matter with the DOJ on December 5, 2018. The consent decree was entered in final form by the U.S. District Court for the District of Columbia on May 22, 2019. The consent decree, which settles claims by the government of alleged violations of federal antitrust laws in connection with the alleged information sharing, does not include any financial penalty. Pursuant to the consent decree, Nexstar and Tribune agreed not to exchange certain non-public information with other stations operating in the same DMA except in certain cases, and to implement certain antitrust compliance measures and to monitor and report on compliance with the consent decree.

Starting in July 2018, a series of plaintiffs filed putative class action lawsuits against the Defendants and others alleging that they coordinated their pricing of television advertising, thereby harming a proposed class of all buyers of television advertising time from one or more of the Defendants since at least January 1, 2014. The plaintiff in each lawsuit seeks injunctive relief and money damages caused by the alleged antitrust violations. On October 9, 2018, these cases were consolidated in a multi-district litigation in the District Court for the Northern District of Illinois captioned In Re: Local TV Advertising Antitrust Litigation, No. 1:18-cv-06785 (“MDL Litigation”). On January 23, 2019, the Court in the MDL Litigation appointed plaintiffs’ lead and liaison counsel.

The MDL Litigation is ongoing. The Plaintiffs’ Consolidated Complaint was filed on April 3, 2019; Defendants filed a Motion to Dismiss on September 5, 2019. Before the Court ruled on that motion, the Plaintiffs filed their Second Amended Consolidated Complaint on September 9, 2019. This complaint added additional defendants and allegations. The Defendants filed a Motion to Dismiss and Strike on October 8, 2019. ~~That~~The Court denied that motion ~~is currently pending.~~on November 6, 2020. The parties are in the discovery phase of litigation. The Court has not yet set a trial date. Nexstar and Tribune deny the allegations against them and will defend their advertising practices.

~~Marshall Litigation—~~On April 3, 2019, Marshall filed a lawsuit against Nexstar in the Supreme Court of the State of New York (the “New York litigation”). The lawsuit initially asserted nine causes of action, five of which were subsequently dismissed by the Supreme Court (the Court’s order dismissing those five claims is currently on appeal), and one of which was withdrawn by Marshall. The remaining causes of action allege: (i) breach of the SSAs between Nexstar and Marshall; (ii) breach of the guaranty agreement between Nexstar and Marshall’s lenders; and (iii) conversion of certain retransmission fees collected by Nexstar on Marshall’s behalf. Marshall is seeking monetary and punitive damages, in addition to attorneys’ fees. Nexstar denies these allegations and intends to defend itself vigorously. On November 20, 2019, Nexstar filed counterclaims against Marshall and Pluria Marshall, in his individual capacity, alleging breach of the SSAs, unjust enrichment, and fraudulent conveyance. Nexstar seeks payment of the outstanding amount due under the SSAs as compensatory damages, punitive damages for the alleged fraudulent conveyances, and attorneys’ fees and costs. The parties have agreed to stay the New York litigation in the trial court until September 30, 2020 and have petitioned the Appellate Division to extend the deadline to perfect the related appeal until September 24, 2020.

On March 31, 2020, Marshall filed a bankruptcy adversary proceeding against Nexstar in the Southern District of Texas. This lawsuit arises in the context of the Marshall chapter 11 case and asserts many of the same causes of action that Marshall brought in the New York litigation, as well as turnover and fraudulent transfer claims. Marshall seeks monetary damages, punitive damages, and equitable relief, in addition to attorneys’ fees. Nexstar denies these allegations and intends to defend itself vigorously. Marshall filed a motion for partial summary judgment on its turnover claim. Nexstar moved for abstention, and in the alternative for dismissal and summary judgment, including a cross motion for summary judgment on Marshall’s turnover claim. On July 6, 2020, the bankruptcy court denied both parties’ partial motions for summary judgment on Marshall’s turnover claim. Nexstar’s motion otherwise remains pending, and oral argument on the remaining aspects of Nexstar’s motion is expected in August 2020.

In connection with Nexstar’s ~~merger with~~acquisition of Tribune on September 19, 2019, Nexstar assumed contingencies from certain legal proceedings, as follows:

Tribune Chapter 11 Reorganization and Confirmation Order Appeals—On December 8, 2008, ~~(the “Petition Date”),~~ Tribune and 110 of its direct and indirect wholly-owned subsidiaries (collectively, the “Debtors”) filed voluntary petitions for relief under chapter 11 (“Chapter 11”) of title 11 of the United States Code ~~(the “Bankruptcy Code”)~~ in the U.S. Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). On ~~April 12,~~July 23, 2012, the Debtors, Oaktree Capital Management, L.P. (“Oaktree”), Angelo, Gordon & Co. L.P. (“AG”), the Official Committee of Unsecured Creditors (the “Creditors’ Committee”), and JPMorgan Chase Bank, N.A. (“JPMorgan” and, together with the Debtors, Oaktree, AG and the Creditors’ Committee, the “Plan Proponents”) filedBankruptcy Court issued an order confirming the Fourth Amended Joint Plan of Reorganization for Tribune and its Subsidiaries ~~with the Bankruptcy Court~~ (as such plan was subsequently modified by ~~the Plan Proponents,~~its proponents, the “Plan”).

~~On July 23, 2012, the Bankruptcy Court issued an order confirming the Plan (the “Confirmation Order”~~). The Plan became effective and the Debtors emerged from Chapter 11 on December 31, 2012 (the “Effective Date”). The Bankruptcy Court has entered final decrees that have collectively closed ~~108~~all of the Debtors’ Chapter 11 ~~cases. The remaining Debtors’~~cases except for Tribune’s Chapter 11 ~~proceedings continue~~case which continues to be ~~jointly~~ administered under the caption In re Tribune Media Company, et al., Case No. 08-13141.

Notices of appeal of the Bankruptcy Court’s order confirming the Plan (the “Confirmation Order”) were filed by (i) Aurelius Capital Management, LP, on behalf of its managed entities that were holders of the Predecessor’s senior notes and Exchangeable Subordinated Debentures due 2029 (“PHONES”); (ii) Law Debenture Trust Company of New York (n/k/a Delaware Trust Company) (“Delaware Trust Company”) and Deutsche Bank Trust Company Americas (“Deutsche Bank”), each successor trustees under the respective indentures for the Predecessor’s senior notes; (iii) Wilmington Trust Company, as successor indenture trustee for the PHONES; and (iv) EGI-TRB, L.L.C., a Delaware limited liability company wholly-owned by Sam Investment Trust (a trust established for the benefit of Samuel Zell and his family) (the “Zell Entity”). The appellants sought, among other relief, to overturn the Confirmation Order and certain prior orders of the Bankruptcy Court embodied in the Plan, including the settlement of certain claims and causes of action related to the Leveraged ESOP Transactions (as defined below) consummated by the Debtors, the Tribune employee stock ownership plan, the Zell Entity and Samuel Zell in 2007. Each of the Confirmation Order appeals has been dismissed or otherwise resolved by a final order, with the exception of the appeals of Delaware Trust Company and Deutsche Bank. On July 30, 2018, the United States District Court for the District of Delaware (the “District Court”) entered an order affirming (i) the Bankruptcy Court’s judgment overruling Delaware Trust Company’s and Deutsche Bank’s objections to confirmation of the Plan and (ii) the Bankruptcy Court’s order confirming the Plan. Delaware Trust Company and Deutsche Bank appealed the District Court’s order to the United States Court of Appeals for the Third Circuit (the “Third Circuit”) on August 27, 2018. That appeal remains pending before the Third Circuit. If the remaining appellants succeed on their appeals, Tribune’s financial condition may be adversely affected.

As of the Effective Date, approximately 7,400 proofs of claim had been filed against the Debtors. Amounts and payment terms for these claims, if applicable, were established in the Plan. The Plan requires Tribune to reserve cash in amounts sufficient to make certain additional payments that may become due and owing pursuant to the Plan subsequent to the Effective Date. As of ~~June 30, 2020,~~March 31, 2021, restricted cash and cash equivalents held by Tribune to satisfy the remaining claim obligations were $16.6 million and are estimated to be sufficient to satisfy such obligations.

As of ~~June 30, 2020,~~March 31, 2021, all but ~~296~~141 proofs of claim against the Debtors had been withdrawn, expunged, settled or otherwise satisfied. The majority of the remaining proofs of claim were filed by certain of Tribune’s former directors and officers and certain professionals formerly retained by Tribune, asserting indemnity and other related claims against Tribune for claims brought against them in lawsuits arising from the cancellation of all issued and outstanding shares of Tribune common stock as of December 20, 2007 and ~~with~~ Tribune thereafter becoming wholly-owned by the Tribune Company employee stock ownership ~~plan (the “Leveraged ESOP Transactions”).~~plan. Those lawsuits were brought in multidistrict litigation (“MDL”) before the U.S. District Court for the Southern District of New York in proceedings captioned In re Tribune Co. Fraudulent Conveyance Litigation~~, and~~. Several of such lawsuits are currently in various stages of appeal to the United States Court of Appeals for the Second Circuit. Under the Plan, the indemnity claims of Tribune’s former directors and officers must be set off against any recovery by the litigation trust formed pursuant to the Plan (the “Litigation Trust”) against any of those directors and officers, and the Litigation Trust is authorized to object to the allowance of any such indemnity-type claims.

The Debtors are continuing to evaluate the remaining proofs of claim. The ultimate amounts to be paid in resolutions of the remaining proofs of claim, including indemnity claims, continue to be subject to uncertainty. If the aggregate allowed amount of the remaining claims exceeds the restricted cash and cash equivalents held for satisfying such claims, Tribune would be required to satisfy the allowed claims from its cash on hand from operations.

Reorganization Items, Net—Reorganization items, net are included in the “Other expenses, net” in the Company’s ~~unaudited Condensed~~ Consolidated Statements of Operations and Comprehensive Income and primarily include professional advisory fees and other costs related to the resolution of unresolved claims. Such amounts were not significant during the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020. The Company expects to continue to incur certain expenses pertaining to the Chapter 11 proceedings throughout ~~2020~~2021 and potentially in future periods.

~~Termination of Tribune and Sinclair Merger Agreement~~—On August 9, 2018, Tribune provided notification to Sinclair Broadcast Group, Inc. (“Sinclair”) that it terminated, effective immediately, the Agreement and Plan of Merger, dated May 8, 2017, with Sinclair, which provided for the acquisition by Sinclair of all of the outstanding shares of Tribune’s common stock. Additionally, on August 9, 2018, Tribune filed a complaint in the Delaware Court of Chancery against Sinclair, alleging that Sinclair willfully and materially breached its obligations under the merger agreement. The lawsuit sought damages for all losses incurred as a result of Sinclair’s breach of contract under the merger agreement.

On ~~January 27, 2020,~~ ~~Nexstar and Sinclair agreed to settle the outstanding lawsuit between Tribune and Sinclair in connection with their terminated merger agreement. Tribune was acquired by Nexstar in September 2019.~~ ~~The companies will dismiss with prejudice the lawsuit pending in the Delaware Court of Chancery between Tribune and~~ Sinclair concerning the terminated Tribune/Sinclair merger, and will release each other from any current and future claims relating to the terminated merger. Neither party has admitted any liability or wrongdoing in connection with the terminated merger. As such, both parties have settled the lawsuit to avoid the costs, distraction, and uncertainties of continued litigation. As part of the resolution, Sinclair has agreed to sell to Nexstar television station WDKY-TV in the Lexington, KY DMA, subject to FCC approval and other customary conditions. On July 15, 2020, Sinclair and Nexstar formalized this proposed acquisition and entered into a definitive agreement to acquire the station for $18.0 million in cash, subject to working capital adjustments ~~(See Note 17 for additional information). The proposed acquisition by Nexstar of this station is subject to FCC approval and other customary approvals and is projected to close in 2020.~~ Sinclair has also sold to Nexstar certain non-license assets associated with television station KGBT-TV in the Harlingen-Weslaco-Brownsville-McAllen, Texas market for $18.0 million in cash. Nexstar and Sinclair have also modified an existing agreement regarding carriage of certain of Sinclair’s digital networks by stations acquired by Nexstar in connection with the Tribune acquisition. Finally, on January 28, 2020, Sinclair made a $98.0 million cash payment to Nexstar.

Chicago Cubs Transactions—On August 21, 2009, Tribune and Chicago Entertainment Ventures, LLC (formerly Chicago Baseball Holdings, LLC) (“CEV LLC”), and its subsidiaries (collectively, “New Cubs LLC”), among other parties, entered into an agreement (the “Cubs Formation Agreement”) governing the contribution of certain assets and liabilities related to the businesses of the Chicago Cubs Major League Baseball franchise then owned by Tribune and its subsidiaries to New Cubs LLC. The transactions contemplated by the Cubs Formation Agreement and the related agreements thereto (the “Chicago Cubs Transactions”) closed on October 27, 2009. As a result of these transactions, Northside Entertainment Holdings LLC (f/k/a Ricketts Acquisition LLC) (“NEH”) owned 95% and Tribune owned 5% of the membership interests in CEV LLC. The fair market value of the contributed assets exceeded the tax basis and did not result in an immediate taxable gain as the transaction was structured to comply with the partnership provisions of the Internal Revenue Code (“IRC”) and related regulations.

On June 28, 2016, the ~~IRS~~Internal Revenue Service (“IRS”) issued Tribune a Notice of Deficiency which presented the IRS’s position that the gain should have been included in Tribune’s 2009 taxable income. Accordingly, the IRS has proposed a $182.0 million tax and a $73.0 million gross valuation misstatement penalty. In addition, after-tax interest on the aforementioned proposed tax and penalty through ~~June 30, 2020~~March 31, 2021 would be approximately ~~$112.0~~$124.0 million. During the third quarter of 2016, Tribune filed a petition in the U.S. Tax Court (the “Tax Court”) to contest the IRS’s determination. A bench trial in the Tax Court took place between October 28, 2019 and November 8, 2019, and closing arguments took place on December 11, 2019. The Company has completed the Tax Court briefing process and expects an opinion on the ~~merit~~merits to be issued in the ~~second~~first half of ~~2020.~~2021. The Tax Court issued an opinion on January 6, 2020 holding that the IRS satisfied the procedural requirements for the imposition of the gross valuation misstatement penalty. The judge deferred any litigation of the penalty until the tax issue has been resolved by the Tax Court. If Tribune prevails on the tax issue, then there would be no penalty to litigate.

On January 22, 2019, Tribune sold its 5% membership interest in CEV LLC and paid the federal and state taxes due on the deferred gain and the gain on sale of its ownership of CEV LLC through its regular tax reporting process. The sale of Tribune’s ownership interest in CEV LLC has no impact on Tribune’s ongoing dispute with the IRS. On September 19, 2019, Tribune became a wholly owned subsidiary of Nexstar pursuant to ~~the Merger Agreement.~~Nexstar’s merger with Tribune. Nexstar continues to disagree with the IRS’s position that the Chicago Cubs Transactions generated a taxable gain in 2009, the proposed penalty and the IRS’s calculation of the gain. If the IRS prevails in its position, the gain on the Chicago Cubs Transactions would be deemed to be taxable in 2009. Nexstar estimates that the federal and state income taxes would be approximately ~~$225.0~~ $225.0 million before interest and penalties. Any tax, interest and penalty due will be offset by tax payments made relating to this transaction subsequent to 2009. Tribune made approximately $147.0 million of tax payments prior to its merger with ~~Nexstar.~~ Nexstar. In addition, if the IRS prevails with its position, under the tax rules for determining tax basis upon emergence from bankruptcy, the Company would be required to reduce its tax basis in certain assets. The reduction in tax basis would be required to reflect the reduction in the amount of the Company’s guarantee of the New Cubs partnership debt which was included in the reported tax basis previously determined upon emergence from bankruptcy. Tribune no longer owns any portion of CEV LLC. The Company has not recorded any tax reserves related to the Chicago Cubs ~~Transactions~~.Transactions.

28Revenue Agent’s Report on Tribune’s 2014 to 2015 Federal Income Tax Audits— Prior to Nexstar’s merger with Tribune in September 2019, Tribune and a few of its subsidiaries were undergoing separate 2014–2015 federal income tax audits. In the third quarter of 2020, the IRS completed its audits of the acquired Tribune entities, and with the exception of Tribune Media Company, all other entity audits have been resolved and closed. For Tribune Media Company, the IRS issued a Revenue Agent's Report which disallows the reporting of certain assets and liabilities related to Tribune’s emergence from Chapter 11 bankruptcy on December 31, 2012. Nexstar disagrees with the IRS’s proposed adjustments to the tax basis of certain assets and the related taxable income impact, and is contesting the adjustments through the IRS administrative appeal procedures. If the IRS prevails with its position, Nexstar would be required to reduce its tax basis in certain assets resulting in a $40.0 million increase in its federal and state taxes payable and a $140.0 million increase in deferred income tax liability as of March 31, 2021. In accordance with ASC Topic 740, the Company has appropriately reflected $11.0 million for certain contested issues in its liability for unrecognized tax benefits.

The Company evaluates the performance of its operating segments based on net revenue and operating income. The Company’s broadcast segment includes (i) television stations and related community focused websites that Nexstar owns, operates, programs or provides sales and other services to in various markets across the United States, (ii) ~~digital multicast network services, (iii) WGN America,~~NewsNation, a live daily national newscast and a national general entertainment cable network, (iii) digital multicast network services, and (iv) WGN-AM, a Chicago radio station. The other activities of the Company include (i) corporate functions, (ii) the management of certain real estate assets, including revenues from leasing certain owned office and production facilities, (iii) digital businesses and (iv) eliminations.

Segment financial information is included in the following tables for the periods presented (in thousands):

Three Months Ended June 30, 2020	Broadcast		Other			Consolidated
Three Months Ended March 31, 2021								Broadcast		Other			Consolidated
Net revenue	$	891,459	$	23,174		$	914,633	$	1,092,375	$	21,556		$	1,113,931
Depreciation		30,316		5,454			35,770		34,030		5,438			39,468
Amortization of intangible assets		68,605		907			69,512		71,436		2,251			73,687
Income (loss) from operations		218,393		(22,140	)		196,253		328,724		(43,804	)		284,920

Six Months Ended June 30, 2020	Broadcast		Other			Consolidated
Three Months Ended March 31, 2020								Broadcast		Other			Consolidated
Net revenue	$	1,965,475	$	40,980		$	2,006,455	$	1,074,016	$	17,806		$	1,091,822
Depreciation		60,091		11,085			71,176		29,775		5,631			35,406
Amortization of intangible assets		138,026		2,069			140,095		69,421		1,162			70,583
Income (loss) from operations		581,420		(80,152	)		501,268		363,027		(58,012	)		305,015

While the Company's investment in TV Food Network ($1.155 billion at March 31, 2021 and $1.302 billion at December 31, 2020) has not been allocated to a Company reporting unit or operating segment, such asset has been included in the Company's disclosure of Broadcast segment assets given the similar nature of the investment to that segment. For additional information on equity investments, see Note 5.

The following tables present the disaggregation of the Company’s revenue for the periods presented (in thousands):

Six Months Ended June 30, 2020	Broadcast		Other		Consolidated
Three Months Ended March 31, 2021							Broadcast		Other		Consolidated
Core advertising (local and national)	$	715,581	$	38	$	715,619	$	411,714	$	-	$	411,714
Political advertising		76,907		-		76,907		5,408		-		5,408
Distribution revenue		1,084,368		1,892		1,086,260
Distribution								621,235				621,235
Digital		67,461		35,640		103,101		46,819		19,571		66,390
Other		15,405		3,410		18,815		5,748		1,985		7,733
Trade revenue		5,753		-		5,753
Total revenue	$	1,965,475	$	40,980	$	2,006,455
Trade								1,451		-		1,451
Total net revenue							$	1,092,375	$	21,556	$	1,113,931

Six Months Ended June 30, 2019	Broadcast		Other		Consolidated
Three Months Ended March 31, 2020							Broadcast		Other		Consolidated
Core advertising (local and national)	$	519,455	$	-	$	519,455	$	417,379	$	-	$	417,379
Political advertising		4,464		-		4,464		55,341		-		55,341
Distribution revenue		628,242		-		628,242
Distribution								549,716		-		549,716
Digital		54,521		54,551		109,072		40,326		16,114		56,440
Other		7,459		30		7,489		8,460		1,692		10,152
Trade revenue		6,937		-		6,937
Total revenue	$	1,221,078	$	54,581	$	1,275,659
Trade								2,794		-		2,794
Total net revenue							$	1,074,016	$	17,806	$	1,091,822

The Company ~~is a~~primarily derives its revenues from television ~~broadcasting~~ and digital ~~media company focused on~~advertising and from distribution of its stations’ signals and networks. During the ~~acquisition, development~~three months ended March 31, 2021, revenues from these sources for 2 of the Company's customers exceeded 10%. Each of these customers represents approximately 12% and ~~operation~~13%, respectively, of ~~television stations and interactive community websites and digital media services in medium-sized markets in~~ the ~~United States.~~Company’s consolidated net revenues. NaN single customer provided more than 10% of the Company’s consolidated net revenues during the three months ended March 31, 2020.

Advertising revenue (core, political and digital) is positively affected by national and regional political campaigns and certain events such as the Olympic Games or the Super Bowl. Company stations’ advertising revenue is generally highest in the second and fourth quarters of each year, due in part to increases in consumer advertising in the spring and retail advertising in the period leading up to, and including, the holiday season. In addition, advertising revenue is generally higher during even-numbered years when congressional and presidential elections occur and advertising is aired during the Olympic Games.

The Company receives compensation from MVPDs and OVDs in return for the consent to the retransmission of the signals of its television stations and the carriage of ~~WGN America.~~NewsNation. Distribution revenue is recognized at the point in time the broadcast signal is delivered to the distributors and is based on a price per subscriber.

On ~~July 8, 2020,~~April 16, 2021, Nexstar ~~assigned to Mission its option to purchase the CW affiliate WPIX in the New York, NY market from Scripps. On the same date, Mission notified Scripps~~Inc., a wholly-owned subsidiary of ~~its exercise~~Nexstar, filed a Certificate of ~~the option for a purchase price of $75.0 million, subject to customary adjustments, plus accrued interest in accordance~~Amendment with the ~~option agreement. Mission expects~~Secretary of State of Delaware to ~~fund this acquisition through new borrowing that is also expected~~change its name to be guaranteed by Nexstar. The proposed acquisition is pending the execution of a purchase agreement and is also subject to FCC approval and other customary conditions and Mission expects it to close at the end of 2020. This acquisition will allow the Company entrance into this market. Nexstar previously acquired WPIX through a merger with Tribune but simultaneously sold the station to Scripps on September 19, 2019. Under Nexstar’s sale agreement with Scripps, Nexstar was granted an assignable option to purchase the station.

On July 15, 2020, Nexstar entered into a definitive agreement to acquire the assets of WDKY-TV, the Fox affiliate in the Lexington, KY market, from Sinclair for $18.0 million in cash, subject to working capital adjustments. The purchase price is expected to be funded through cash on hand. The proposed acquisition is subject to FCC approval and other customary conditions and Nexstar expects it to close at the end of 2020. This acquisition will allow Nexstar entrance into this market.Media Inc.

On ~~July 24, 2020~~April 28, 2021, Nexstar’s Board of Directors declared a quarterly cash dividend of $~~0.56~~0.70 per share of its Class A common stock. The dividend is payable on ~~August 21, 2020~~May 28, 2021 to stockholders of record on ~~August 7, 2020~~May 14, 2021.

30From April 1, 2021 to May 3, 2021, we repurchased 331,162 shares of our Class A common stock for $49.6 million, funded by cash on hand. As of the filing of this Quarterly Report on Form 10-Q, the remaining available amount under the share repurchase authorization was $1.004 billion.

The following discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and related Notes included elsewhere in this Quarterly Report on Form 10-Q and the Consolidated Financial Statements and related Notes contained in our Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020.

As used in this Quarterly Report on Form 10-Q and unless the context indicates otherwise, “Nexstar” refers to Nexstar Media Group, Inc. and its consolidated subsidiaries; ~~“Nexstar Broadcasting” refers to Nexstar Broadcasting, Inc., our wholly-owned direct subsidiary; “Nexstar Digital” refers to Nexstar Digital LLC, our wholly-owned direct subsidiary;~~ the “Company” refers to Nexstar and the variable interest entities (“VIE”) required to be consolidated in our financial statements; and all references to “we,” “our,” “ours,” and “us” refer to Nexstar.

As a result of our deemed controlling financial interests in the consolidated VIEs in accordance with U.S. GAAP, we consolidate their financial position, results of operations and cash flows as if they were wholly-owned entities. We believe this presentation is meaningful for understanding our financial performance. Refer to Note 2 to our Condensed Consolidated Financial Statements for a discussion of our determinations of VIE consolidation under the related authoritative guidance. Therefore, the following discussion of our financial position and results of operations includes the consolidated VIEs’ financial position and results of operations.

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including: the risks and uncertainties related to the global ~~COVID-19~~Coronavirus Disease (“COVID-19”) pandemic, including, for example, expectations regarding the impact of COVID-19 on our businesses and our future financial performance; our ability to obtain financial ~~and tax~~ benefits from the recently-passed ~~Coronavirus Aid, Relief, and Economic Security~~American Rescue Plan Act of 2021 (“~~CARES Act”~~ARPA”); any projections or expectations of earnings, revenue, financial performance, liquidity and capital resources or other financial items; the impact of pending or future litigation; the effects of governmental regulation and future regulation on broadcasting; competition from others in our broadcast television markets; volatility in programming costs; any assumptions or projections about the television broadcasting industry; any statements of our plans, strategies and objectives for our future operations, performance, liquidity and capital resources or other financial items; any statements concerning proposed new products, services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words “may,” “will,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and other similar words. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ from a projection or assumption in any of our forward-looking statements. Our future financial position and results of operations, as well as any forward-looking statements, are subject to change and the inherent risks and uncertainties, including those described in our Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 and in our other filings with the United States Securities and Exchange Commission (“SEC”). The forward-looking statements made in this Quarterly Report on Form 10-Q are made only as of the date hereof, and we do not have or undertake any obligation to update any forward-looking statements to reflect subsequent events or circumstances.

~~On January 27, 2020, we~~ ~~acquired certain non-license assets associated with television station KGBT-TV in the Harlingen-Weslaco-Brownsville-McAllen, Texas market from Sinclair for $17.9 million in cash.~~ On March 2, 2020, we completed our acquisition of Fox affiliate television station WJZY and MyNetworkTV affiliate television station WMYT in the Charlotte, NC market from Fox for $45.3 million in cash. The acquisition from Fox allowed us entry into the Charlotte, NC market.

On January 14, 2020, the Company sold its sports betting information website business to Star Enterprises Ltd., a subsidiary of Alto Holdings, Ltd., for a net consideration of $12.9 million (net of $2.4 million cash balance of this business that was transferred to the buyer upon sale).

On March 2, 2020, Nexstar completed the sale of Fox affiliate television station KCPQ and MyNetworkTV affiliate television station KZJO in the Seattle, WA market, as well as Fox affiliate television station WITI in the Milwaukee, WI market, to Fox for approximately $349.9 million in cash, including working capital adjustments. Our proceeds from the sale of the stations were partially used to prepay our term loans.

On January 27, 2020, Sinclair agreed to sell to Nexstar television station WDKY-TV in the Lexington, KY DMA (see Note 15, “Commitment and Contingencies”). On July 15, 2020, Sinclair and Nexstar formalized this proposed acquisition and entered into a definitive agreement to acquire the station for $18.0 million in cash, subject to working capital adjustments. The proposed acquisition by Nexstar of this station is subject to FCC approval and other customary approvals and is expected to close at the end of 2020.

On March 30, 2020, Mission, a VIE that we consolidate, entered into an asset purchase agreement to acquire certain assets of the three television stations currently owned by Marshall: KMSS serving the Shreveport, Louisiana market, KPEJ serving the Odessa, Texas market and KLJB serving the Davenport, Iowa market. The purchase price for the acquisition is approximately $49.0 million, which will be applied against Marshall’s existing loans payable to Mission on a dollar-for-dollar basis. The purchase price is subject to customary adjustments. The proposed acquisition was approved by the Bankruptcy Court for the Southern District of Texas but is also subject to FCC and other customary approvals and is expected to close in 2020.

On July 8, 2020, Nexstar assigned to Mission its option to purchase CW affiliate WPIX in the New York, NY market from Scripps. On the same date, Mission notified Scripps of its exercise of the option for a purchase price of $75.0 million, subject to customary adjustments, plus accrued interest pursuant to the option agreement. Mission expects to fund this acquisition through a new borrowing that is also expected to be guaranteed by Nexstar. Nexstar previously acquired WPIX through a merger with Tribune but simultaneously sold the station to Scripps on September 19, 2019. Under Nexstar’s sale agreement with Scripps, Nexstar was granted an assignable option to purchase the station.

~~In March 2020,~~The United States economy continued its path to recovery in the first quarter of 2021 with millions of Americans receiving the COVID-19 vaccine, the favorable effects of the U.S. government’s stimulus programs and states and municipalities increasingly reopening and easing movement restrictions and public health initiatives since the outbreak of COVID-19 was first declared as a pandemic by the World Health Organization ~~declared the outbreak of Coronavirus Disease (“COVID-19”)~~in March 2020 and as a ~~pandemic and~~national emergency by the President of the United ~~States declared~~States.

During the first quarter of 2021, the Company continued to be profitable and continued to generate positive cash flows from its operations, its current year to date financial results were higher than the comparable prior year, and its market capitalization continued to increase and exceed the carrying amount of its equity by a substantial amount. These favorable financial results are primarily attributable to the Company’s acquisitions of BestReviews, station WPIX and other stations in 2020 and the continuing signs of recovery from the effects of the COVID-19 pandemic, ~~a national emergency. The virus continues to spread throughout~~driven by the U.S. and the world and has resulted in authorities implementing numerous measures to contain the virus, including travel bans and restrictions, quarantines, shelter-in-place orders, and business limitations and shutdowns. While we are unable to accurately predict the full impact thatmass distribution of COVID-19 will have on our results from operations, financial condition, liquidity and cash flows due to numerous uncertainties, including the duration, severity and containment measures, our compliance and the measures we have taken around the pandemic situation has impacted our day-to-day operations and disrupted our business and operations, as well as those of our key business partners, affiliates, vendors and other counterparties, for an indefinite period of time. To support the health and well-being of our employees, business partners and communities, a vast majority of our employees worked remotely since mid-March 2020 until the end of April 2020 when we partially resumed our normal onsite workplace setting. On May 1, 2020, the shelter-in-place orders in the state of Texas were lifted and we fully resumed our normal corporate workplace setting, subject to continuous monitoring.

The disruptions caused by COVID-19 had an adverse impact on our business and our financial results mostly in the first part of the second quarter in 2020. This was followed by a significant improvement in our financial results in the remaining part of the second quarter in 2020 as certain areasvaccines throughout the United States ~~permitted~~and the re-opening of non-essential businesses. As of June 30, 2020, we remained profitable. Our current year results were also higher than our prior year results primarily due to contribution from our acquisition of Tribune in September 2019. As of June 30, 2020, there have been no material changes in our customer mix, including our advertisers, multichannel video programming distributors and online video distributors. The disruptions fromU.S. government’s stimulus programs. Overall, the ongoing COVID-19 pandemic did not have a material impact on ~~our liquidity.~~the Company’s liquidity during the first quarter of 2021. As of ~~June 30, 2020, our~~March 31, 2021, the Company’s unrestricted cash on hand amounted to $339.8 million and the Company had a positive working capital ~~were $664.6~~of $646.5 million, both increased from the December 31, 2020 levels of $152.7 million and ~~$720.5 million, respectively, both of which increased from our December 31, 2019 levels of $232.1 million and $404.2~~$479.1 million, respectively. ~~We continue to generate operating cash flows and we believe we have~~As of March 31, 2021, the Company was in compliance with its financial covenants contained in the amended credit agreements governing its senior secured credit facilities. The Company believes it has sufficient unrestricted cash on hand and ~~have the~~has availability to access additional cash up to ~~$139.7~~$94.7 million and $3.0 million under the respective amended Nexstar and Mission revolving credit facilities (with a maturity date of October 2023) to meet ~~our~~the Company’s business operating requirements, ~~our~~its capital expenditures and to continue to service ~~our~~its debt for at least the next 12 months as of the filing date of this Quarterly Report on Form 10-Q. ~~We currently estimate~~While we are encouraged by the trends we saw in the first quarter, we remain uncertain of the ultimate effect COVID-19 could have on our business and our future financial performance. To the extent that ~~overall revenue and operating~~the pandemic continues to have negative impact on the U.S. economy, our results ~~for the remainder of fiscal 2020~~ will be ~~lower than initially anticipated at the beginning of fiscal 2020, despite that 2020 is an election year.~~affected. The full extent of the impact of the COVID-19 pandemic on our future business operations will also depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the ~~duration~~availability of effective treatments and vaccines, the ~~COVID-19 outbreak,~~speed at which these vaccines are administered, new information which may emerge concerning the severity and impact of the COVID-19 pandemic, and any additional preventative and protective actions that the U.S. government or the Company may direct, which may result in an extended period of continued business disruption. Further financial impact cannot be reasonably estimated at this time but may continue to have a material impact on our business and results of operations and may also have a material impact on our financial condition and liquidity.direct. We will continue to evaluate the nature and extent of the impact of COVID-19 pandemic on our business, financial condition and liquidity in future periods.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES ~~Act~~Act”) was signed into law. The CARES Act provides opportunities for additional liquidity, loan guarantees, and other government programs to support companies affected by the COVID-19 pandemic and their employees. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, deferral of contributions to qualified pension plans and other postretirement benefit plans, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. ~~In particular, under~~Under the CARES Act, ~~(i)~~we elected to defer $31.7 million of employer social security payments in two equal installments on December 31, 2021 and 2022.

On March 11, 2021, the ARPA was signed into law. The ARPA includes changes to the employer funding requirements for ~~taxable years beginning before 2021, net operating loss carryforwards~~single-employer pension plans and ~~carrybacks may offset 100%~~is designed to reduce the amounts of ~~taxable income, (ii) NOLs arising in 2018, 2019, and 2020 taxable years may be carried back to each~~required contributions as a relief. The ARPA also includes multi-employer pension plan funding relief but had no significant impact on Nexstar. The two key aspects of the ~~preceding five years~~ARPA funding relief for single-employer plans are extended amortization and “fresh start” of funding shortfalls and extended funding interest rate stabilization. Nexstar has no funding shortfalls but utilized the extended funding interest rate stabilization on its pension benefit plans. This relief increased Nexstar’s funding target attainment and currently requires no cash contribution to ~~generate a refund and (iii) for taxable years beginning~~its qualified pension benefit plans in 2019 and 2020, the base for interest deductibility is increased from 30% to 50% of EBITDA. We intend to continue to review and consider any available potential benefits under the CARES Act for which we qualify, including those described above. The U.S. government or any other governmental authority that agrees to provide such aid under the CARES Act or any other crisis relief assistance may impose certain requirements on the recipients of the aid, including restrictions on executive officer compensation, dividends, prepayment of debt, limitations on debt and other similar restrictions that will apply for a period of time after the aid is repaid or redeemed in full. The CARES Act is not expected to have a material impact on the Company’s Condensed Consolidated Financial Statements.2021.

As of ~~June 30, 2020,~~March 31, 2021, we owned, operated, programmed or provided sales and other services to ~~196~~198 full power television stations, including those owned by VIEs, and one AM radio station in ~~114~~116 markets in 3839 states and the District of Columbia. The stations are affiliates of ABC, NBC, FOX, CBS, The CW, MNTV and other broadcast television networks. Through various local service agreements, we provided sales, programming and other services to 3637 full power television stations owned by independent third parties, of which 3236 full power television stations are VIEs that are consolidated into our financial statements. ~~See Note 2—Variable Interest Entities~~

On October 1, 2020, Nexstar Broadcasting, Inc., our wholly-owned subsidiary, filed a Certificate of Amendment with the Secretary of State of Delaware to change its name to Nexstar Inc. In connection with this change, effective on November 1, 2020, we merged our ~~unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for a discussion of~~two primary operating subsidiaries, Nexstar Inc. and Nexstar Digital, LLC, with Nexstar Inc. surviving the ~~local service agreements we have with these independent third parties.~~merger as our single operating subsidiary. Accordingly, our broadcasting, network and digital businesses are now operating under the Nexstar Inc. umbrella. On April 16, 2021, Nexstar Inc. changed its name to Nexstar Media Inc.

We guarantee full payment of all obligations incurred under Mission’s ~~and Shield’s~~ senior secured credit ~~facilities~~facility in the event of ~~their~~its default. Mission is a guarantor of our senior secured credit facility, our 5.625% Notes due ~~2024~~2027 and our ~~5.625%~~4.75% Notes due ~~2027. Shield does not guarantee any debt within the group.~~2028. In consideration of our guarantee of Mission’s senior secured credit facility, except for three stations, Mission has granted us purchase options to acquire the assets and assume the liabilities of each Mission station, subject to FCC consent. These option agreements (which expire on various dates between 2021 and 2028) are freely exercisable or assignable by us without consent or approval by Mission or its shareholders. We expect these option agreements to be renewed upon expiration.

We do not own the consolidated VIEs or their television stations. However, we are deemed under U.S. GAAP to have controlling financial interests for financial reporting purposes in these entities because of (1) the local service agreements ~~Nexstar has~~we have with their stations, (2) our ~~guarantees~~guarantee of the obligations incurred under Mission’s ~~and Shield’s~~ senior secured credit ~~facilities,~~facility, (3) our power over significant activities affecting ~~these~~the VIEs’ economic performance, including budgeting for advertising revenue, advertising sales and, in some cases, hiring and firing of sales force personnel and (4) purchase options granted by each ~~such~~consolidated VIE which permit ~~Nexstar~~us to acquire the assets and assume the liabilities of each of these VIEs’ stations, exclusive of stations KMSS, KPEJ and KLJB, at any time, subject to FCC consent. In compliance with FCC regulations for all the parties, each of the consolidated VIEs maintains complete responsibility for and control over programming, finances and personnel for its stations.

In December 2019, Marshall, a VIE previously consolidated by us and the owner of three television stations, filed a voluntary petition for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. Effective on December 6, 2019, the bankruptcy court ordered the cancellation of certain contracts between us and Marshall, including the JSAs. As a result of these developments, we evaluated our business arrangements with Marshall and determined that we no longer have the power to direct the most significant economic activities of the entity and thus we no longer meet the accounting criteria for a controlling financial interest in the entity. Thus, we deconsolidated Marshall’s assets, liabilities and equity effective in December 2019. The SSAs between us and Marshall are currently active.

On March 30, 2020, Mission (currently the lender of Marshall) entered into an asset purchase agreement to acquire certain assets of the three television stations currently owned by Marshall: KMSS serving the Shreveport, Louisiana market, KPEJ serving the Odessa, Texas market and KLJB serving the Davenport, Iowa market. The purchase price for the acquisition is approximately $49.0 million, which will be applied against Marshall’s existing loans payable to Mission on a dollar-for-dollar basis. The purchase price is subject to customary adjustments. The proposed acquisition was approved by the Bankruptcy Court for the Southern District of Texas but is also subject to FCC and other customary approvals and is expected to close in 2020.

See Note ~~2—Variable~~2, “Variable Interest ~~Entities~~Entities” to our unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Form ~~10-Q.~~10-Q for additional information on VIEs, including a discussion of the local service agreements we have with these independent third parties.

As a television broadcaster, the Company is highly regulated, and its operations require that it retain or renew a variety of government approvals and comply with changing federal regulations. In 2016, the FCC reinstated a previously adopted rule providing that a television station licensee which sells more than 15 percent of the weekly advertising inventory of another television station in the same DMA ~~under a JSA~~ is deemed to have an attributable ownership interest in that station. Parties to existing JSAs that were deemed attributable interests and did not comply with the FCC’s local television ownership rule were given until September 30, 2025 to come into compliance. In November 2017, the FCC adopted an order on reconsideration that eliminated the television JSA attribution rule. That elimination became effective on February 7, 2018. On September 23, 2019, a federal court of appeals vacated the FCC’s November 2017 order on ~~reconsideration. The court later denied petitions for~~ ~~en banc~~ ~~rehearing; on November 29, 2019 its decision became effective;~~reconsideration, and on December 20, 2019 the FCC issued an order that formally reinstated the rule. ~~The court’s decision has been appealed to~~On April 17, 2020, the FCC and a group of media industry stakeholders (including Nexstar) filed separate petitions for certiorari requesting that the U.S. Supreme ~~Court.~~Court review the September 2019 appeals court decision. The Supreme Court granted certiorari on October 2, 2020. On April 1, 2021 the Supreme Court reversed the appeals court decision. The effect of Supreme Court ruling will be for the FCC to reinstate the reconsideration order. If the Company is ultimately required to amend or terminate its existing JSAs, the Company could have a reduction in revenue and increased costs if it is unable to successfully implement alternative arrangements that are as beneficial as the existing JSAs.

The FCC has repurposed a portion of the broadcast television spectrum for wireless broadband use. In an incentive auction which concluded in April 2017, certain television broadcasters accepted bids from the FCC to voluntarily relinquish their spectrum in exchange for consideration. Television stations that did not relinquish their spectrum were “repacked” into the frequency band still remaining for television broadcast use. In July 2017, the Company received $478.6 million in gross proceeds from the FCC for eight stations that ~~now~~ share a channel with another station since 2018, one station that moved to a VHF channel in 2019, one station that moved to a VHF channel in ~~April~~ 2020 and one that went off the air in November 2017. The station that went off the air did not have a significant impact on our financial results because it was located in a remote rural area of the country and the Company has other stations which serve the same area.

Seventy-four (74) full power stations owned by Nexstar and 17 full power stations owned by VIEs were assigned to new channels in the reduced post-auction television band. ~~All of these~~These stations have commenced operation on their new assigned channels and have ceased operating on their former ~~channels and are operating on their new assigned channels, although the Company will continue to incur costs to convert certain stations from interim to permanent facilities on their new~~ channels. Congress has allocated up to an industry-wide total of $2.75 billion to reimburse television broadcasters, MVPDs and other parties for costs reasonably incurred due to the repack. D~~During~~uring the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020, the Company spent a total of ~~$13.0~~ $4.4 million and ~~$29.9~~$16.9 million, respectively, in capital expenditures related to station repack which were recorded as assets under the property and equipment caption in the accompanying Condensed Consolidated Balance Sheets. During the three ~~and six~~ months ended ~~June 30, 2019, the Company spent a total of $22.6 million~~March 31, 2021 and $36.4 million, respectively, in capital expenditures related to station repack which were recorded as assets under the property and equipment caption in the accompanying Condensed Consolidated Balance Sheets. During the three and six months ended June 30, 2020, the Company received ~~$25.7~~$5.4 million and $38.5 million, respectively, in reimbursements from the FCC related to these expenditures which were recorded as operating income in the accompanying Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2019, the Company received $19.4 million and $33.6$12.8 million, respectively, in reimbursements from the FCC related to these expenditures which were recorded as operating income in the accompanying Condensed Consolidated Statements of Operations. As of ~~June 30, 2020,~~March 31, 2021, approximately ~~$52.8~~$27.6 million of estimated remaining costs in connection with the station repack are expected to be incurred by the Company, some or all of which will be reimbursable. If the FCC fails to fully reimburse the Company’s repacking costs, the Company could have increased costs related to the repack.

Advertising revenue is positively affected by national and regional political election campaigns and certain events such as the Olympic Games or the Super Bowl. Advertising revenue is generally highest in the second and fourth quarters of each year, due in part to increases in consumer advertising in the spring and retail advertising in the period leading up to, and including, the holiday season. In addition, advertising revenue is generally higher during even-numbered years, when state, congressional and presidential elections occur and ~~when~~from advertising ~~airs~~aired during the Olympic Games. As ~~2020~~2021 is not an election year, we ~~generally~~ expect ~~an increase~~a decrease in political advertising revenue to be reported in ~~2020~~2021 compared to ~~2019.~~2020. However, due to business disruptions caused by COVID-19, our revenue from political advertising may be less than we initially anticipated at the beginning of 2020 but the ultimate outcome is unknown at this time. Additionally, the rescheduling of the ~~summer~~2020 Summer Olympics to 2021 ~~also~~ due to the COVID-19 pandemic ~~situation, decreased our advertising revenue in 2020 but~~ is expected to increase our core advertising revenue in ~~2021.~~2021 if the Summer Olympics occur as scheduled.

The following table sets forth the amounts of the Company’s principal types of revenue (in thousands) and each type of revenue as a percentage of total net revenue:

	Three Months Ended June 30,								Six Months Ended June 30,								Three Months Ended March 31,
	2020				2019				2020				2019				2021				2020
	Amount		%		Amount		%		Amount		%		Amount		%		Amount		%		Amount		%
Core advertising	$	298,240		32.6	$	267,611		41.2	$	715,619		35.6	$	519,455		40.8	$	411,714		37.0	$	417,379		38.2
Political advertising		21,566		2.4		3,157		0.5		76,907		3.8		4,464		0.3		5,408		0.5		55,341		5.1
Distribution revenue		536,544		58.7		314,268		48.4		1,086,260		54.1		628,242		49.2		621,235		55.8		549,716		50.3
Digital		46,661		5.1		56,237		8.7		103,101		5.1		109,072		8.6		66,390		6.0		56,440		5.2
Other		8,663		0.9		3,625		0.6		18,815		1.1		7,489		0.6		7,733		0.6		10,152		0.9
Trade revenue		2,959		0.3		4,114		0.6		5,753		0.3		6,937		0.5		1,451		0.1		2,794		0.3
Total net revenue	$	914,633		100.0	$	649,012		100.0	$	2,006,455		100.0	$	1,275,659		100.0	$	1,113,931		100.0	$	1,091,822		100.0

The following table sets forth a summary of the Company’s operations (in thousands) and each component of operating expense as a percentage of net revenue:

	Three Months Ended June 30,												Six Months Ended June 30,												Three Months Ended March 31,
	2020						2019						2020						2019						2021						2020
	Amount			%			Amount			%			Amount			%			Amount			%			Amount			%			Amount			%
Net revenue	$	914,633			100.0		$	649,012			100.0		$	2,006,455			100.0		$	1,275,659			100.0		$	1,113,931			100.0		$	1,091,822			100.0
Operating expenses (income):
Corporate expenses		35,399			3.9			31,821			4.9			88,873			4.4			62,586			4.9			43,480			3.9			53,474			4.9
Direct operating expenses, net of trade		413,742			45.2			292,162			45.0			855,523			42.6			581,594			45.6			447,782			40.2			441,781			40.5
Selling, general and administrative expenses, excluding corporate		157,844			17.3			112,237			17.3			322,754			16.1			223,832			17.5			199,957			18.0			164,910			15.1
Depreciation		35,770			3.9			28,090			4.3			71,176			3.5			55,527			4.4			39,468			3.5			35,407			3.2
Amortization of intangible assets		69,512			7.6			36,357			5.6			140,095			7.0			73,095			5.7			73,687			6.6			70,582			6.5
Amortization of broadcast rights		35,740			3.9			13,935			2.2			72,948			3.7			28,297			2.2			30,883			2.7			37,208			3.4
Trade expense		2,897			0.3			3,882			0.6			6,175			0.3			7,313			0.6			1,610			0.1			3,278			0.3
Reimbursement from the FCC related to station repack		(25,716	)		(2.8	)		(19,416	)		(3.0	)		(38,474	)		(1.9	)		(33,603	)		(2.6	)		(5,415	)		(0.5	)		(12,758	)		(1.2	)
Change in the estimated fair value of contingent consideration attributable to a merger		3,933			0.4			-			-			3,933			0.2			-			-
Gain on relinquishment of spectrum		(10,791	)		(1.2	)		-			-			(10,791	)		(0.5	)		-			-
Loss (gain) on disposal of stations and entities, net		50			-			-			-			(7,025	)		(0.4	)		-			-
Gain on disposal of stations and entities, net																										(2,441	)		(0.2	)		(7,075	)		(0.6	)
Total operating expenses		718,380						499,068						1,505,187						998,641						829,011						786,807
Income from operations	$	196,253					$	149,944					$	501,268					$	277,018					$	284,920					$	305,015

Three Months Ended ~~June 30, 2020~~March 31, 2021 Compared to Three Months Ended ~~June 30, 2019~~March 31, 2020

The period-to-period comparability of our consolidated operating results is affected by acquisitions. For each quarter we present, our legacy stations include those stations that we owned or provided services to for the complete quarter in the current and prior years. For our annual and year to date presentations, we combine the legacy stations’ amounts presented in each quarter.

Core advertising revenue was ~~$298.3~~$411.7 million for the three months ended ~~June 30, 2020,~~March 31, 2021, compared to ~~$267.6~~$417.4 million for the same period in ~~2019, an increase~~2020, a decrease of ~~$30.7~~$5.7 million, or ~~11.4%~~1.4%. The ~~increase~~decrease was primarily due to ~~incremental~~the ongoing impact of the COVID-19 pandemic on our legacy stations’ core advertising revenue ~~from Tribune stations and other businesses we acquired in 2019~~ of ~~$129.7~~$10.8 million and ~~current year station acquisitions of $3.7 million, partially offset by~~ a decrease in revenue from our station divestitures of ~~$10.7~~$12.3 million, partially offset by the incremental revenue from television stations we acquired in 2020 of $17.5 million. Our legacy stations’ core advertising revenue decreased by $90.4 million, primarily due to the business disruptions caused by COVID-19 and changes in the mix between our core and political advertising. Our deconsolidation of Marshall in December 2019 also resulted in a $1.6 million decrease in revenue. Our largest advertiser category, automobile, represented approximately ~~13%~~19% and ~~22%~~20% of our core advertising revenue for the three months ended ~~June 30,~~March 31, 2021 and 2020, ~~and 2019,~~ respectively. Overall, including past results of our newly acquired stations, automobile revenues decreased by approximately 9%5% during the quarter. The other categories representing our top five were medical/healthcare, attorneys, insurance and lottery, which all increased in 2020, and medical/healthcare, furniture and fast food restaurants, which decreased in 2020. We currently estimate that overall core advertising revenue for the remainder of fiscal 2020 will continue to be negatively impacted2021. While we are encouraged by the ~~business disruptions caused by COVID-19. The full extent~~trends we saw in the first quarter, we remain uncertain of the ~~impact of the~~ultimate effect COVID-19 pandemic on our business operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak, new information which may emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that the U.S. government, we, or our business partners, may direct, which may result in an extended period of continued business disruption. Further financial impact cannot be reasonably estimated at this time but may continue tocould have ~~a material impact~~ on our core advertising revenue ~~and~~in fiscal year 2021. To the extent that the pandemic continues to have negative impacts on the U.S. economy, our ~~overall~~ results ~~of operations. Additionally,~~will be affected. However, the rescheduling of the summer Olympics to 2021, also due to the COVID-19 pandemic situation, ~~decreased our advertising revenue in 2020 but~~ is expected to increase our core advertising revenue in ~~2021.~~2021 if such event occurs as scheduled.

Political advertising revenue was ~~$21.6~~$5.4 million for the three months ended ~~June 30, 2020,~~March 31, 2021, compared to ~~$3.2~~$55.3 million for the same period in ~~2019, an increase~~2020, a decrease of ~~$18.4~~$49.9 million, or 90.2% as ~~2020~~2021 is not an election year. Of the $18.4 million increase, $5.3 million was attributable to incremental revenue from Tribune stations we acquired in 2019, and $13.0 million was attributable to our legacy stations. We generally expect an increase in political advertising revenue in 2020 compared to 2019. However, due to business disruptions caused by COVID-19, our revenue from political advertising may be less than we initially anticipated at the beginning of 2020, but the ultimate outcome is unknown at this time.

Distribution revenue was ~~$536.5~~$621.2 million for the three months ended ~~June 30, 2020,~~March 31, 2021, compared to ~~$314.3~~$549.7 million for the same period in ~~2019,~~2020, an increase of ~~$222.2~~$71.5 million, or ~~70.7%~~13.0%. The increase was primarily due to incremental revenue from Tribune stations and other businesses we acquired in 2019 of $183.2 million (including $12.3 million revenue from copyright royalty received in 2020) and current year station acquisitions of $11.3 million, partially offset by a decrease in revenue from station divestitures and deconsolidation of Marshall of $16.4 million and $4.4 million, respectively. Our legacy stations’ revenue increased by ~~$48.5~~$48.6 million primarily due to the combined effect of scheduled annual escalation of rates per subscriber, renewals of contracts providing for higher rates per subscriber (contracts generally have a three-year term), and ~~contributions from~~new distribution agreements with higher contract rates with OVDs. Additionally, our stations acquired in 2020 increased our revenue in 2021 by $38.2 million, partially offset by a decrease in revenue from our station divestitures of $15.3 million. We anticipate continued increase of retransmission fees until there is a more balanced relationship between viewers delivered and fees paid for delivery of such viewers.

Digital media revenue, representing advertising revenue on our stations’ web and mobile sites and other internet-based revenue, was ~~$46.7~~$66.4 million for the three months ended ~~June 30, 2020,~~March 31, 2021, compared to ~~$56.2~~$56.4 million for the same period in ~~2019, a decrease~~2020, an increase of ~~$9.5~~$10.0 million, or ~~17.0%~~17.6%. ~~Our digital businesses’ revenue decreased by $7.6 million~~The increase was primarily due to the business disruption caused by COVID-19 and realigned digital business operations. Our legacy stations’ revenue from web and mobile sites also decreased by $6.9 million primarily due to the business disruption caused by COVID-19. These decreases were partially offset by incremental revenue from ~~Tribune~~the digital business and television stations we acquired in ~~2019~~2020 of ~~$6.1~~$12.1 million, ~~less~~partially offset by a decrease in revenue from station divestitures of ~~$1.3~~$1.9 million.

Corporate expenses, related to costs associated with the centralized management of our stations, were ~~$35.4~~$43.5 million for the three months ended ~~June 30, 2020,~~March 31, 2021, compared to ~~$31.8~~$53.5 million for the same period in ~~2019, an increase~~2020, a decrease of ~~$3.6~~$10.0 million, or ~~11.2%~~18.7%. This was primarily attributable to ~~an increase in stock-based compensation due to new equity incentives granted and an increase in legal fees primarily attributable to the ongoing litigation inherited from Tribune,~~ ~~partially offset by~~ a decrease in payroll and ~~bonuses~~severance costs due primarily to reduction in employees and a decrease in legal and professional ~~fees.~~fees associated with our acquisitions during the first quarter of 2020.

Station direct operating expenses, consisting primarily of news, engineering, programming and station selling, general and administrative expenses (net of trade expense) were ~~$571.6~~$647.7 million for the three months ended ~~June 30, 2020,~~March 31, 2021, compared to ~~$404.4~~$606.7 million for the same period in ~~2019,~~2020, an increase of ~~$167.2~~$41.0 million, or ~~41.3%~~6.8%. The increase was primarily due to expenses associated with ~~Tribune~~our television stations and ~~other businesses~~digital business we acquired in ~~2019~~2020 of ~~$174.3~~$34.8 million (including network, programming and ~~programming~~other direct operating costs of ~~$117.1~~$21.1 million) and our current year station acquisitions of $9.8 million, partially offset by decrease in expenses from our station divestitures and the deconsolidation of Marshall of $16.1 million and $3.7 million, respectively.. In addition, our legacy stations’ programming costs increased by ~~$29.1~~$19.6 million, primarily due to network affiliation renewals and annual increases in our network affiliation ~~costs and an increase in selling, general and administrative expenses.~~costs. These increases were partially offset by a ~~$24.2 million~~ decrease in ~~the operating expenses~~expense from station divestitures of $16.1 million, and our digital products ~~due to lower revenue~~of $2.8 million.

Depreciation of property and equipment was ~~$35.8~~$39.5 million for the three months ended ~~June 30, 2020,~~March 31, 2021, compared to ~~$28.1~~$35.4 million for the same period in ~~2019,~~2020, an increase of ~~$7.7~~$4.1 million, or ~~27.3%~~11.5%, primarily due to incremental depreciation from the ~~Tribune~~television stations and ~~other businesses~~digital business we acquired in ~~2019 and current year station acquisitions, partially offset by station divestitures,~~2020 and increased depreciation from newly capitalized assets related to station repacking and other activities.

Amortization of intangible assets was ~~$69.5~~$73.7 million for the three months ended ~~June 30, 2020,~~March 31, 2021, compared to ~~$36.4~~$70.6 million for the same period in ~~2019,~~2020, an increase of ~~$33.2~~$3.1 million, or ~~91.2%~~4.4%. This was primarily due to increased amortization from the ~~Tribune~~television stations and ~~other businesses~~digital business we acquired in ~~2019 and current year station acquisitions,~~2020 of $3.6 million, partially offset by decreases in amortization from our divested stations and certain fully amortized ~~assets and divested stations.~~assets.

Amortization of broadcast rights was ~~$35.7~~$30.9 million for the three months ended ~~June 30, 2020,~~March 31, 2021, compared to ~~$13.9~~$37.2 million for the same period in ~~2019, an increase~~2020, a decrease of ~~$21.8~~$6.3 million, or ~~156.5%.~~17.0%, primarily due to the reduction of NewsNations’ film rights cost as it focus and expand its national newscast programs. The ~~increase~~decrease was primarily due to ~~incremental amortization~~our NewsNation's shift from ~~the Tribune stations and other businesses we acquired~~syndicated programming to national newscast programming in 2019 and current year station acquisitions, less decreases from station divestitures. This increase was partially offset by a reduction in amortization costs on our legacy stations due to renegotiation of certain film contracts which resulted in reduced distribution rates.

Certain of the Company’s stations, including certain Tribune stations, were assigned to new channels (“repack”) in connection with the FCC’s process of repurposing a portion of the broadcast television spectrum for wireless broadband use. These stations have vacated their former channels by the prescribed FCC deadline of July 13, 2020 and are continuing to spend costs, mainly capital expenditures, to construct and license the necessary technical modifications to permanently operate on their newly assigned channels. Subject to fund limitations, the FCC reimburses television broadcasters, MVPDs and other parties for costs reasonably incurred due to the repack. During the three months ended June 30, 2020 and 2019, we received a total of $25.7 million and $19.4 million, respectively, in reimbursements from the FCC which we recognized as operating income.

During the three months ended June 30, 2020, we completed a station’s conversion to a VHF channel completing our final relinquishment of spectrum pursuant to the FCC’s incentive auction conducted in 2016-2017. Accordingly, the associated spectrum asset with a carrying amount of $67.2 million and liability to surrender spectrum of $78.0 million were derecognized, resulting in a non-cash gain on relinquishment of spectrum of $10.8 million. This gain was partially offset by a $3.9 million increase (expense) in the estimated fair value of contingent consideration liability related to a merger and spectrum auction. 2020.

Income on equity investments, net was ~~$11.3~~$29.8 million for the three months ended ~~June 30, 2020,~~March 31, 2021, compared to ~~a $665 thousand loss on equity investments~~$14.2 million for the same period in ~~2019,~~2020, an increase of ~~$12.0~~$15.6 million. The increase was primarily attributable to ~~our 31.3%~~higher equity in ~~earnings of~~income from our investment in TV Food Network, ~~less~~net of the amortization of basis ~~difference. On September 19, 2019, we acquired our 31.3% ownership stake in TV Food Network through our merger with Tribune.~~difference, of $15.7 million.

Pension and other postretirement plans credit, net was ~~$10.8~~$17.7 million for the three months ended ~~June 30, 2020,~~March 31, 2021, compared to ~~$1.4~~$10.8 million for the same period in ~~2019,~~2020, an increase of ~~$9.4~~$6.9 million, primarily attributable to ~~pension plans and other postretirement benefits we assumed through our merger with Tribune on September 19, 2019.~~a reduction in estimated interest costs.

Interest expense, net was ~~$82.3~~$72.1 million for the three months ended ~~June 30, 2020,~~March 31, 2021, compared to ~~$51.4~~$101.3 million for the same period in ~~2019, an increase~~2020, a decrease of ~~$30.9~~$29.2 million, or ~~60.1%~~28.9%. The ~~increase~~decrease was ~~primarily~~ due ~~to interest incurred on term loans issued on September 19, 2019 and 5.625% Notes due 2027 issued July 3, 2019 which were both related~~primarily to the financing of Nexstar's acquisition of Tribune, partially offset primarily by a decrease in interest expense in conjunction with Nexstar's redemption of 6.125% and 5.875% Notes and a decrease in interest expense on our legacy term loans due to the combined effect of reduction in principal amount of our term loans from prepayments and reduction in the London Inter-Bank Offered Rate ~~(“LIBOR”~~("LIBOR").

During the three months ended ~~June 30, 2020, there was no~~March 31, 2021, loss on extinguishment of debt ~~as there were no debt~~was $1.0 million due to prepayments ~~or transactions that would result in the recognition~~on our Term Loan B due 2024 of ~~a loss during the quarter.~~ $75.0 million. During the ~~same period in 2019,~~three months ended March 31, 2020, we made prepayments of our term loans amounting to ~~$100.0~~$430.0 million ~~and we recognized $2.0 million of~~resulting in a loss on extinguishment ~~as a result~~ of ~~such prepayments.~~debt of $7.5 million.

Income tax expense was ~~$37.4~~$59.7 million for the three months ended ~~June 30, 2020~~March 31, 2021 compared to ~~$26.6~~$64.3 million for the same period in ~~2019.~~2020. The effective tax rates, which decreased in the current year, were ~~27.6%~~23.1% and ~~27.4%~~29.0% for each of the respective periods. ~~The increase in~~In 2020, Nexstar recorded an income tax expense of $8.1 million attributable to nondeductible goodwill written off as a result of the sale of stations to Fox, or a 3.7% decrease to the effective tax rate ~~between the two periods was primarily due~~in 2021. Additionally, certain state contingency reserves decreased as a result of audit settlements. This resulted in a decrease to ~~changes~~income tax expense of $6.5 million in ~~state income taxes and other permanent adjustments,~~2021, or a ~~0.2% increase~~2.5% decrease to the effective tax ~~rate.~~rate in 2021.

The Company calculates its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income or loss and adjusts the provision for discrete tax items recorded in the period. Future changes in the forecasted annual income projections, including changes due to the impact of the COVID-19 pandemic, could result in significant adjustments to quarterly income tax expense in future periods.

Core advertising revenue was $715.6 million for the six months ended June 30, 2020, compared to $519.4 million for the same period in 2019, an increase of $196.2 million, or 37.8%. The increase is primarily due to our incremental revenue from Tribune stations and other businesses we acquired in 2019 of $322.5 million, and an increase in revenue from our current year station acquisitions of $6.1 million, partially offset by a decrease in revenue from station divestitures of $20.6 million. Our legacy stations’ core advertising revenue decreased by $108.6 million, primarily due to the business disruptions caused by COVID-19 since mid-March of 2020 and changes in the mix between our core and political advertising. Our deconsolidation of Marshall in December 2019 also resulted in a $3.2 million decrease in revenue. Our largest advertiser category, automobile, represented approximately 16% and 22% of our core advertising revenue for the six months ended June 30, 2020 and 2019, respectively. Overall, including past results of our newly acquired stations, automobile revenues decreased by approximately 6% in 2020. The other categories representing our top five were attorneys, which increased in 2020, and medical/healthcare, furniture and fast food restaurants, which decreased in 2020. We currently estimate that overall core advertising revenue for the remainder of fiscal 2020 will continue to be negatively impacted by the business disruptions caused by COVID-19. The full extent of the impact of the COVID-19 pandemic on our business operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak, new information which may emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that the U.S. government, we, or our business partners, may direct, which may result in an extended period of continued business disruption. Further financial impact cannot be reasonably estimated at this time but may continue to have a material impact on our core advertising revenue and our overall results of operations. Additionally, the rescheduling of the summer Olympics to 2021, also due to the COVID-19 pandemic situation, decreased our advertising revenue in 2020 but is expected to increase our advertising revenue in 2021.

Political advertising revenue was $76.9 million for the six months ended June 30, 2020, compared to $4.5 million for the same period in 2019, an increase of $72.4 million, as 2020 is an election year. Of the $72.4 million increase, $28.7 million was attributable to the incremental revenue from Tribune stations we acquired in 2019, and $43.1 million was attributable to our legacy stations. We generally expect an increase in political advertising revenue in 2020 compared to 2019. However, due to business disruptions caused by COVID-19, our revenue from political advertising may be less than we initially anticipated at the beginning of 2020, but the ultimate outcome is unknown at this time.

~~Distribution revenue was $1.086 billion for the six months ended June 30, 2020, compared to $628.2 million for the same period in 2019, an increase of $458.0 million, or 72.9%.~~ The increase is primarily due to incremental revenue from Tribune stations and other businesses we acquired in 2019 of $376.1 million (including $12.3 million revenue from copyright cable royalty received in 2020) and our current year station acquisitions of $15.9 million. Our legacy stations’ revenue increased by $108.1 million, primarily due to scheduled annual escalation of rates per subscriber, renewals of smaller contracts providing for higher rates per subscriber (contracts generally have a three-year term) and contributions from distribution agreements with OVDs. The increase is partially offset by a decrease in revenue due to station divestitures of $33.2 million and deconsolidation of Marshall of $8.8 million. We anticipate continued increase of retransmission fees until there is a more balanced relationship between viewers delivered and fees paid for delivery of such viewers.

Digital revenue, representing advertising revenue on our stations’ web and mobile sites and other internet-based revenue, was $103.1 million for the six months ended June 30, 2020, compared to $109.1 million for the same period in 2019, a decrease of $6.0 million, or 5.5%. Our digital businesses’ revenue decreased by $18.9 million primarily due to a decrease in our social media platform and the business disruption caused by COVID-19 since mid-March of 2020. Our legacy stations’ revenue from web and mobile sites also decreased by $2.0 million primarily due to the business disruption caused by COVID-19 since mid-March of 2020. These decreases were partially offset by incremental revenue from Tribune stations and other businesses we acquired in 2019 of $17.3 million, less a decrease in revenue from station divestitures of $2.2 million.

Corporate expenses, related to costs associated with the centralized management of our stations, were $88.9 million for the six months ended June 30, 2020, compared to $62.6 million for the same period in 2019, an increase of $26.3 million, or 42.0%. This was primarily attributable to an increase in payroll, bonuses and severance of $7.4 million primarily associated with Tribune’s corporate expenses that wound down towards the end of the first quarter in 2020, an increase in stock-based compensation of $5.7 million due to new equity ~~incentives~~ ~~granted, and an increase in legal fees of $3.9 million primarily attributable to the ongoing litigation inherited from Tribune.~~

Station direct operating expenses, consisting primarily of news, engineering, programming and station selling, general and administrative expenses (net of trade expense) were $1.178 billion for the six months ended June 30, 2020 compared to $805.4 million for the same period in 2019, an increase of $372.9 million, or 46.3%. ~~This was~~ primarily due to expenses associated with the Tribune stations and other businesses we acquired in 2019 of $372.4 million (including network and programming costs of $248.4 million), and expenses associated with our current year station acquisitions of $13.3 million, partially offset by decreases in expenses from our station divestitures and the deconsolidation of Marshall of $32.1 million and $7.5 million, respectively. In addition, our legacy stations’ programming costs increased by $58.7 million, primarily due to network affiliation renewals and annual increases in our network affiliation costs. ~~These increases were partially offset by a $29.9 million decrease in the operating expenses of our digital products due~~ ~~to lower revenue.~~

Depreciation of property and equipment was $71.2 million for the six months ended June 30, 2020, compared to $55.5 million for the same period in 2019, an increase of $15.7 million, or 28.2%. The increase was primarily due to incremental depreciation from Tribune stations and other businesses we acquired in 2019 and current year station acquisitions, partially offset by station divestitures, and increased depreciation from newly capitalized assets related to station repacking activities.

~~Amortization of intangible assets was $140.1 million for the six months ended June 30, 2020, compared to $73.1 million for the same period in 2019.~~ This was primarily due to increased amortization from Tribune stations and other businesses we acquired in 2019 and current year station acquisitions, partially offset by decreases in amortization from certain fully amortized assets and divested stations.

~~Amortization of broadcast rights was $72.9 million for the six months ended June 30, 2020, compared to $28.3 million for the same period in 2019, an increase of $44.6 million, or 157.8%,~~ The increase was primarily due to incremental amortization from Tribune stations and other businesses we acquired in 2019 and current year station acquisitions, less decreases from station divestitures. This increase was partially offset by a reduction in amortization costs on our legacy stations due to renegotiation of certain film contracts which resulted in reduced distribution rates.

Certain of the Company’s stations, including certain Tribune stations, were repacked in connection with the FCC’s process of repurposing a portion of the broadcast television spectrum for wireless broadband use. These stations have vacated their former channels by the FCC-prescribed deadline of July 13, 2020 and are continuing to spend costs, mainly capital expenditures, to construct and license the necessary technical modifications to operate on their newly assigned channels and to vacate their former channels no later than July 13, 2020. Subject to fund limitations, the FCC reimburses television broadcasters, MVPDs and other parties for costs reasonably incurred due to the repack. During the six months ended June 30, 2020 and 2019, the Company received $38.5 million and $33.6 million, respectively, in reimbursements from the FCC which it recognized as operating income.

In April 2020, we completed a station’s conversion to a VHF channel representing our final relinquishment of spectrum pursuant to the FCC’s incentive auction conducted in 2016-2017. Accordingly, the associated spectrum asset with a carrying amount of $67.2 million and liability to surrender spectrum of $78.0 million, were derecognized, resulting in a non-cash gain on relinquishment of spectrum of $10.8 million. This gain was partially offset by a $3.9 million increase (expense) in the estimated fair value of contingent consideration liability related to a merger and spectrum auction.

Income on equity investments, net was $25.5 million for the six months ended June 30, 2020, compared to a $1.2 million loss on equity investments for the same period in 2019, an increase of $26.6 million, primarily attributable to our 31.3% equity in earnings of TV Food Network, less amortization of basis difference. On September 19, 2019, we acquired a 31.3% ownership stake in TV Food Network through our merger with Tribune.

Pension and other postretirement plans credit, net was $21.5 million for the six months ended June 30, 2020, compared to $2.8 million for the same period in 2019, an increase of $18.7 million, primarily attributable to the pension plans and other postretirement benefit plans we assumed through our merger with Tribune on September 19, 2019.

~~Interest expense, net was $183.5 million for the six months ended June 30, 2020, compared to $104.3 million for the same period in 2019, an increase of $79.2 million, or 75.9%.~~ The increase was primarily due to interest incurred on term loans issued on September 19, 2019 and on 5.625% Notes due 2027 issued July 3, 2019 which were both related to the financing of Nexstar's acquisition of Tribune, partially offset primarily by a decrease in interest expense in conjunction with Nexstar's redemption of 6.125% and 5.875% Notes and a decrease in interest expense on our legacy term loans due to the combined effect of reduction in principal and the London Inter-Bank Offered Rate (“LIBOR”).

~~Loss on extinguishment of debt was $7.5 million for the six months ended June 30, 2020, compared to $3.7 million for the same period in 2019, an increase of $3.8 million,~~ ~~primarily due to an increase in prepayments on our term loans of $350.0 million in 2020 compared to the prior period.~~

Income tax expense was $101.8 million for the six months ended June 30, 2020 compared to $43.1 million for the same period in 2019. The effective tax rates were 28.5% and 25.2% for each of the respective periods. The increase in the effective tax rate between the two periods was primarily due to nondeductible goodwill written off as a result of divestitures and a decrease in the deduction for excess tax benefits. The Company recognized an income tax expense of $8.1 million attributable to nondeductible goodwill written off as a result of divestitures, or a 2.3% increase to the effective tax rate. Additionally, the Company recognized a decrease in the excess tax benefit related to stock-based compensation of $2.3 million, or a 2.3% increase to the effective tax rate. These increases were offset by a 0.8% decrease in the impact of permanent differences on the effective rate.

The Company is leveraged, which makes it vulnerable to changes in general economic conditions. The Company’s ability to repay or refinance its debt will depend on, among other things, financial, business, market, competitive and other conditions, many of which are beyond the Company’s control, for instance, uncertainties surrounding the business outlook caused by ~~Coronavirus Disease 2019 (“COVID-19”).~~COVID-19. In December ~~2019, COVID-19 was reported and has spread globally, including to every state in the United States. In March~~ 2020, the ~~World Health Organization declared~~U.S. Food and Drug Administration issued emergency use authorizations of two vaccines for the prevention of COVID-19, with a ~~pandemic and the United States government declared a national emergency with respect to COVID-19.~~third one approved in February 2021. COVID-19 has created and may continue to create significant uncertainty in global financial markets, which may reduce demand for ~~our~~the Company’s advertising, retransmission, and digital services, impact the productivity of ~~our~~its workforce, reduce ~~our~~its access to capital, and harm ~~our~~its business and results of operations.

The ~~disruptions caused by COVID-19 had an adverse impact~~Company continues to monitor the effects COVID-19 could have on ~~our business~~its operations and ~~our~~liquidity. During the first quarter of 2021, the Company continued to be profitable and continued to generate positive cash flows from its operations, its current year to date financial results ~~mostly~~were higher than the comparable prior year, and its market capitalization continued to increase and exceed the carrying amount of its equity by a substantial amount. These favorable financial results are primarily attributable to the Company’s acquisitions of BestReviews, station WPIX and other stations in 2020 and the ~~first part~~continuing signs of recovery from the effects of the ~~second quarter in 2020. This was followed~~COVID-19 pandemic, driven by ~~a significant improvement in our financial results in~~ the ~~remaining part~~mass distribution of ~~the second quarter in 2020 as certain areas~~COVID-19 vaccines throughout the United States ~~permitted~~and the re-opening of non-essential businesses. As of June 30, 2020, we remained profitable. Our current year results were also higher than our prior year results primarily due to contribution from our acquisition of Tribune in September 2019. As of June 30, 2020, there have been no material changes in our customer mix, including our advertisers, multichannel video programming distributors and online video distributors. The disruptions fromU.S. government’s stimulus programs. Overall, the ongoing COVID-19 pandemic did not have a material impact on the Company’s liquidity during the first quarter of 2021. As of ~~June 30, 2020,~~March 31, 2021, the Company’s unrestricted cash on hand amounted to ~~$664.6~~$339.8 million and the Company had a positive working capital of ~~$720.5~~$646.5 million, both increased from the December 31, ~~2019~~2020 levels of ~~$232.1~~$152.7 million and ~~$404.2~~$479.1 million, respectively. As of ~~June 30, 2020,~~March 31, 2021, the Company was in compliance with its financial covenants contained in the amended credit agreements governing its senior secured credit facilities. The Company believes it has sufficient unrestricted cash on hand and has availability to access additional cash up to ~~$139.7~~$94.7 million and $3.0 million under the respective amended Nexstar and Mission revolving credit facilities (with a maturity date of October 2023) to meet its business operating requirements, its capital expenditures and to continue to service its debt for at least the next 12 months as of the filing date of this Quarterly Report on Form 10-Q. The Company also believes its leverage is well positioned to withstand the current challenges as the nearest maturity of its outstanding debt will not occur until October 2023. The Company will continue to evaluate ~~its~~the nature and extent of the impact of COVID-19 pandemic on the market conditions, on the Company’s liquidity and financial condition and its best use of operating cash ~~flow and the market conditions to determine if further steps are necessary.~~flows in future periods.

The following tables present summarized financial information management believes is helpful in evaluating the Company’s liquidity and capital resources (in thousands):

	Six Months Ended June 30,						Three Months Ended March 31,
	2020			2019			2021			2020
Net cash provided by operating activities	$	717,298		$	236,400		$	448,255		$	415,118
Net cash provided by (used in) investing activities		321,852			(36,856	)
Net cash provided by (used in) investing activities⁽¹⁾								(22,807	)		351,029
Net cash used in financing activities		(606,594	)		(264,735	)		(238,372	)		(564,150	)
Net increase in cash, cash equivalents and restricted cash	$	432,556		$	(65,191	)	$	187,076		$	201,997
Cash paid for interest	$	171,348		$	98,103		$	82,106		$	125,516
Income taxes paid, net of refunds	$	7,686		$	52,419		$	5,511		$	2,110

	As of June 30,		As of December 31,		As of March 31,		As of December 31,
	2020		2019		2021		2020
Cash, cash equivalents and restricted cash	$	681,234	$	248,678	$	356,385	$	169,309
Long-term debt, including current portion		8,038,068		8,492,588		7,592,107		7,668,003
Unused revolving loan commitments under senior secured credit facilities ⁽¹⁾		142,662		142,662		97,701		95,662

Net cash flows provided by operating activities increased by ~~$480.9~~$33.1 million during the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, compared to the same period in ~~2019.~~2020. This was primarily due to increases in revenue (excluding trade) of ~~$732.0~~$23.5 million, ~~distributions~~source of cash due to lower interest payments of $43.4 million, an increase in distribution from our equity ~~investments~~investment in TV Food Network of ~~$197.1 million, an increase in source of cash resulting from timing of accounts receivable collections of $109.6~~$7.3 million and ~~an increase in source of cash resulting from~~ lower ~~tax~~ payments of ~~$44.7~~broadcast rights of $6.2 million. These increases were partially offset by an increase in our corporate, direct operating and selling, general and administrative expense (excluding non-cash transactions) of ~~$388.1~~$30.1 million, ~~an increase in cash paid for interest of $73.2 million,~~ ~~an increase in payments for broadcast rights of $72.6 million and a use~~uses of cash resulting from timing of accounts receivable collections of $9.2 million and timing of payments to our vendors of ~~$75.9~~$3.2 million, and higher tax payments of $3.4 million.

Net cash flows ~~provided by~~used in investing activities were ~~$321.9~~$22.8 million during the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, compared to net cash flows ~~used in~~provided by investing activities of ~~$36.9~~$351.0 million infor the same period in ~~2019.~~ 2020.

In 2021, we spent a total of $32.1 million in capital expenditures, partially offset by reimbursements from the FCC related to station repack of $5.6 million and proceeds from the sale of a business unit of $2.5 million.

In 2020, we sold two television stations and our sports betting information website business for $349.9 million and $12.9 million in cash, respectively. We also received $98.0 million ofin cash proceeds from settlement of litigation between Sinclair and ~~Tribune, which we acquired in September 2019.~~Tribune. These increases were reduced by the cash ~~payments~~payment we made to acquire two television stations and certain non-license assets for a total cash consideration ~~payments~~payment of ~~$63.2~~$63.0 million. Our c~~apital~~capital expenditures during the ~~six~~three months ended ~~June 30,~~March 31, 2020 were ~~$115.7~~$60.1 million, ~~an increase of $44.2 million compared to the same period in 2019,~~ primarily due to ~~increased capital expenditure requirements from Tribune stations and other businesses we acquired in September 2019, partially offset by~~ station ~~divestitures.~~ ~~Other activity included an increase in reimbursements~~repack activities which are reimbursable from the ~~FCC for station repack costs of $4.9 million.~~FCC.

Net cash flows used in financing activities ~~increased by $341.9~~were $238.4 million during the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, compared to $564.1 million for the same period in ~~2019.~~2020.

In 2021, we prepaid a portion of the outstanding principal balance of our Term Loan B due 2024 of $75 million and made scheduled principal payments on our Term Loan A due 2024 of $5.4 million, paid dividends to our common stockholders of $30.4 million ($0.70 per share during each quarter), repurchased common shares of $121.0 million, paid cash for taxes in exchange for shares of common stock withheld of $8.1 million resulting from net share settlements of certain stock-based compensation, and paid for finance lease and software obligations of $1.4 million. These decreases were offset by the proceeds from the exercise of stock option of $2.8 million.

In 2020, we made payments on the outstanding principal balance of our term loans of ~~$470.3~~$457.3 million (including $430.0 million in prepayments), paid dividends to our common stockholders of ~~$51.0~~$25.7 million ($0.56 per share during ~~each~~the quarter), repurchased common shares of $72.6 million, paid cash for taxes in exchange for shares of common stock withheld of ~~$6.8~~$6.5 million resulting from net share settlements of certain stock-based compensation, and paid for ~~finance~~capital lease and software obligations of ~~$6.3~~$1.8 million.

In 2019, we made payments on the outstanding principal balance of our term loans of $203.6 million, paid dividends to our common stockholders of $41.3 million ($0.45 per share each quarter), paid cash for taxes in exchange for shares of common stock withheld of $9.8 million resulting from net share settlements of certain stock-based compensation, completed our acquisition of the noncontrolling interest of station KHII for a cash payment of $6.4 million, paid for finance lease and software obligations of $5.0 million and received proceeds from the exercise of stock options of $1.5 million.

Our senior secured credit facility may limit the amount of dividends we may pay to stockholders over the term of the agreement.

As of ~~June 30, 2020,~~March 31, 2021, the Company had total combined debt of ~~$8.0~~$7.592 billion, net of financing costs and discounts, which represented ~~78.7%~~74.7% of the Company’s combined capitalization. The Company’s high level of debt requires that a substantial portion of cash flow be dedicated to pay principal and interest on debt, which reduces the funds available for working capital, capital expenditures, acquisitions and other general corporate purposes.

The following table summarizes the principal indebtedness scheduled to mature for the periods referenced as of ~~June 30, 2020~~March 31, 2021 (in thousands):

	Total		2020		2021-2022		2023-2024		Thereafter		Total		Remainder of 2021		2022-2023		2024-2025		Thereafter
Nexstar senior secured credit facility	$	5,198,049	$	24,267	$	203,021	$	2,079,125	$	2,891,636	$	4,550,200	$	16,072	$	597,070	$	1,292,742	$	2,644,316
Mission senior secured credit facility		225,099		1,143		4,571		219,385		-		327,000		-		327,000		-		-
Shield senior secured credit facility		21,238		575		3,903		16,760		-
5.625% Notes due 2024		900,000		-		-		900,000		-
5.625% Notes due 2027		1,785,000		-		-		-		1,785,000		1,785,000		-		-		-		1,785,000
4.75% Notes due 2028												1,000,000		-		-		-		1,000,000
	$	8,129,386	$	25,985	$	211,495	$	3,215,270	$	4,676,636	$	7,662,200	$	16,072	$	924,070	$	1,292,742	$	5,429,316

~~We make semiannual interest payments on our~~ ~~5.625% Notes due 2024 on February 1 and August 1 of each year.~~ We make semiannual interest payments on the 5.625% Notes due 2027 on January 15 and July 15 of each year. We make semiannual interest payments on our 4.75% Notes due 2028 on May 1 and November 1 of each year. Interest payments on our ~~Mission’s~~ and ~~Shield’s~~Mission’s senior secured credit facilities are generally paid every one to three months and are payable based on the type of interest rate selected.

The terms of our ~~Mission’s~~ and ~~Shield’s~~Mission’s senior secured credit facilities, as well as the indentures governing our 5.625% Notes due ~~2024~~2027 and ~~5.625%~~4.75% Notes due ~~2027,~~2028, limit, but do not prohibit us ~~Mission~~ or ~~Shield,~~Mission, from incurring substantial amounts of additional debt in the future.

The Company does not have any rating downgrade triggers that would accelerate the maturity dates of its debt. However, a downgrade in the Company’s credit rating could adversely affect its ability to renew the existing credit facilities, obtain access to new credit facilities or otherwise issue debt in the future and could increase the cost of such debt.

The Company had ~~$142.7~~$94.7 million and $3.0 million of total unused revolving loan commitments under the respective Nexstar and Mission senior secured credit facilities, all of which were available for borrowing, based on the covenant calculations as of ~~June 30, 2020.~~March 31, 2021. The Company’s ability to access funds under its senior secured credit facilities depends, in part, on our compliance with certain financial covenants. Any additional drawings under the senior secured credit facilities will reduce the Company’s future borrowing capacity and the amount of total unused revolving loan commitments. As discussed above, the ultimate outcome of the COVID-19 pandemic is uncertain at this time and may significantly impact our future operating performance, liquidity and financial position. Any adverse impact of the COVID-19 pandemic may cause us to seek alternative sources of funding, including accessing capital markets, subject to market conditions. Such alternative sources of funding may not be available on commercially reasonable terms or at all.

On September 1, 2020, Nexstar’s Board of Directors approved an additional $300 million in Nexstar’s share repurchase authorization to repurchase its Class A common stock. On January 27, 2021, Nexstar’s Board of Directors also approved a new share repurchase program authorizing the Company to repurchase up to $1.0 billion of its Class A common stock. The new $1.0 billion share repurchase program increased the Company’s existing share repurchase authorization to a total capacity of $1.175 billion when combined with the remaining available amount under its prior authorization and before reduction for any repurchases in the first quarter of 2021. During the three months ended March ~~30, 2020, Mission entered into~~31, 2021, Nexstar repurchased a total of 808,530 shares of its Class A common stock for $121.0 million, funded by cash on hand. From April 1, 2021 to May 3, 2021, we repurchased an ~~asset purchase agreement to acquire certain assets~~additional 331,162 shares of our Class A common stock for $49.6 million, funded by cash on hand. As of the ~~three television stations currently owned by Marshall: KMSS serving~~filing of this Quarterly Report on Form 10-Q, the ~~Shreveport, Louisiana market, KPEJ serving~~remaining available amount under the Odessa, Texas market and KLJB serving the Davenport, Iowa market. The purchase price for the acquisition is approximately $49.0 million, which will be applied against Marshall’s existing loans payable to Mission on a dollar-for-dollar basis. The purchase price is subject to customary adjustments. The ~~proposed acquisition~~share repurchase authorization was ~~approved by the Bankruptcy Court for the Southern District of Texas but~~ ~~is also subject to FCC and other customary approvals and is expected to close in 2020.~~$1.004 billion.

On July 8, 2020, Nexstar assigned to Mission its option to purchase the CW affiliate WPIX in the New York, NY market from Scripps. On the same date, Mission notified Scripps of its exercise of the option for a purchase price of $75.0 million, subject to customary adjustments, plus accrued interest in accordance with the option agreement. Mission expects to fund this acquisition through a new borrowing that is also expected to be guaranteed by Nexstar. The proposed acquisition is pending the execution of a purchase agreement and is also subject to FCC approval and other customary conditions and Mission expects it to close at the end of 2020. This acquisition will allow the Company entrance into this market. Nexstar previously acquired WPIX through a merger with Tribune but simultaneously sold the station to Scripps on September 19, 2019. UnderApril 28, 2021, Nexstar’s ~~sale agreement with Scripps, Nexstar was granted an assignable option to purchase the station.~~

~~On July 24, 2020, our~~ Board of Directors declared a quarterly cash dividend of ~~$0.56~~$0.70 per share of ~~our~~its Class A common stock. The dividend is payable on ~~August 21, 2020~~May 28, 2021 to stockholders of record on ~~August 7, 2020.~~May 14, 2021.

Our credit agreement contains a covenant which requires us to comply with a maximum consolidated first lien net leverage ratio of 4.25 to 1.00. The financial covenant, which is formally calculated on a quarterly basis, is based on our combined results. The Mission ~~and Shield~~ amended credit ~~agreements do~~agreement does not contain financial covenant ratio requirements but dodoes provide for default in the event we do not comply with all covenants contained in our credit agreement. As of ~~June 30, 2020,~~March 31, 2021, we were in compliance with our financial covenant. We believe Nexstar ~~Mission,~~ and ~~Shield~~Mission will be able to maintain compliance with all covenants contained in the credit agreements governing their senior secured facilities and the indentures governing our 5.625% Notes due ~~2024~~2027 and ~~5.625%~~4.75% Notes due ~~2027~~2028 for a period of at least the next 12 months from ~~June 30, 2020.~~March 31, 2021.

As of ~~June 30, 2020,~~March 31, 2021, we did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or VIEs, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. All of our arrangements with our VIEs in which we are the primary beneficiary are on-balance sheet arrangements. Our variable interests in other entities are obtained through local service agreements, which have valid business purposes and transfer certain station activities from the station owners to us. We are, therefore, not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such relationships.

As of ~~June 30, 2020,~~March 31, 2021, we ~~have~~had outstanding standby letters of credit with various financial institutions amounting to ~~$23.7~~$21.7 million, of which ~~$20.3~~$18.2 million was ~~assumed from the 2019 Tribune acquisition primarily~~ in support of ~~the~~certain worker’s compensation insurance ~~program.~~programs. The outstanding balance of standby letters of credit is deducted against our unused revolving loan commitment under our senior secured credit facility and would not be available for withdrawal.

Nexstar ~~Broadcasting’s~~Media Inc.’s (a wholly-owned subsidiary of Nexstar and herein referred to as the “Issuer”) 5.625% Notes due ~~2024~~2027 and ~~5.625%~~4.75% Notes due ~~2027~~2028 are fully and unconditionally guaranteed (the “Guarantees”), jointly and severally, by Nexstar Media Group, Inc. (“Parent”), Mission (a consolidated VIE) and certain of Nexstar ~~Broadcasting’s~~Media Inc.’s restricted subsidiaries (collectively, the “Guarantors” and, together with the Issuer, the “Obligor Group”). The Guarantees are subject to release in limited circumstances upon the occurrence of certain customary conditions set forth in the indentures governing the 5.625% Notes due ~~2024~~2027 and the 4.75% Notes due 2028. The Issuer’s 5.625% Notes due ~~2027. The Issuer’s 5.635%~~2027 and 4.75% Notes due ~~2024 and 5.625% Notes due 2027~~2028 are not registered with the SEC.

The following combined summarized financial information is presented for the Obligor Group after elimination of intercompany transactions between Parent, Issuer and Guarantors in the Obligor Group and amounts related to investments in any subsidiary that is a non-guarantor. This information is not intended to present the financial position or results of operations of the consolidated group of companies in accordance with U.S. GAAP.

Summarized Balance Sheet Information (in thousands) – Summarized balance sheet information as of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020 of the Obligor Group is as follows:

	June 30, 2020		December 31, 2019		March 31, 2021		December 31, 2020
Current assets - external	$	1,500,711	$	1,291,730	$	1,371,625	$	1,205,580
Current assets - due from consolidated entities outside of Obligor Group		174,190		171,344		35,857		35,572
Total current assets	$	1,674,901	$	1,463,074	$	1,407,482	$	1,241,152
Noncurrent assets - external⁽¹⁾		10,409,213		10,869,745
Noncurrent assets - external⁽¹⁾						10,603,048		10,676,397
Noncurrent assets - due from consolidated entities outside of Obligor Group		305,457		92,494		53,292		53,292
Total noncurrent assets	$	10,714,670	$	10,962,239	$	10,656,340	$	10,729,689
Total current liabilities	$	799,539	$	904,811	$	725,943	$	727,557
Total noncurrent liabilities	$	10,485,945	$	10,733,488	$	10,014,300	$	10,123,544
Noncontrolling interests	$	6,391	$	6,250	$	6,996	$	6,951

Summarized Statements of Operations Information for the Obligor Group (in thousands):

	Six Months Ended		Three Months Ended
	June 30, 2020		March 31, 2021
Net revenue - external	$	1,960,219	$	1,109,809
Net revenue - from consolidated entities outside of Obligor Group		14,455		4,090
Total net revenue		1,974,674		1,113,899
Costs and expenses - external		1,434,477		822,973
Costs and expenses - to consolidated entities outside of Obligor Group		40,221		4,284
Total costs and expenses		1,474,698		827,257
Income from operations	$	499,976	$	286,642
Net income	$	229,577	$	170,785
Net income attributable to Obligor Group	$	229,577	$	170,785
Income on equity method investments	$	25,510	$	29,808

Our Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements and reported amounts of revenue and expenses during the period. On an ongoing basis, we evaluate our estimates, including those related to business acquisitions, goodwill and intangible assets, property and equipment, broadcast rights, retransmission compensation, pension and postretirement benefits, and income taxes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, including the effects of the COVID-19 pandemic on our estimates and assumptions, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates.

Information with respect to the Company’s critical accounting policies which it believes could have the most significant effect on the Company’s reported results and require subjective or complex judgments by management is contained in our Annual Report on Form 10-K for the year ended December 31, ~~2019.~~2020. Management believes that as of ~~June 30, 2020,~~March 31, 2021, there has been no material change to this information.

Refer to Note 2 of our Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion of recently issued accounting pronouncements, including our expected date of adoption and effects on results of operations and financial position.

The Company’s exposure to market risk for changes in interest rates relates primarily to its long-term debt obligations. The Company’s exposure to market risk did not change materially since December 31, ~~2019.~~2020.

The term loan borrowings at ~~June 30, 2020~~March 31, 2021 under the Company’s senior secured credit facilities bear interest rates ranging from ~~1.91%~~1.61% to ~~2.91%~~2.61%, which represented the base rate, or the LIBOR plus the applicable margin, as defined. Interest is payable in accordance with the credit agreements.

If LIBOR were to increase by 100 basis points, or one percentage point, from its ~~June 30, 2020~~March 31, 2021 level, the Company’s annual interest expense would increase and cash flow from operations would decrease by approximately ~~$54.4~~$45.5 million, based on the outstanding balances of the Company’s senior secured credit facilities as of ~~June 30, 2020.~~March 31, 2021. An increase of 50 basis points in LIBOR would result in a ~~$27.2~~$22.8 million increase in annual interest expense and decrease in cash flow from operations. If LIBOR were to decrease either by 100 basis points or 50 basis points, the ~~Company��s~~Company’s annual interest would decrease and cash flow from operations would increase by ~~$8.8~~$5.1 million. Since the onset of the COVID-19 pandemic, LIBOR has dropped significantly, and may be more volatile in the future, which could potentially impact our total interest expense. Our 5.625% Notes due ~~2024~~2027 and ~~5.625%~~4.75% Notes due ~~2027~~2028 are fixed rate debt obligations and therefore are not exposed to market interest rate changes. As of ~~June 30, 2020,~~March 31, 2021, the Company has no financial instruments in place to hedge against changes in the benchmark interest rates on its senior secured credit facilities.

We believe that the Company’s results of operations are not affected by moderate changes in the inflation rate. However, the COVID-19 pandemic has created great uncertainty about the path of the economy and society in the years ahead. Recent supply and demand shocks and dramatic changes in fiscal policy may lead to higher levels of inflation in future periods.

Nexstar’s management, with the participation of its ~~President~~Chairman and Chief Executive Officer along with its President, Chief Operating Officer and Chief Financial Officer, conducted an evaluation as of the end of the period covered by this report of the effectiveness of the design and operation of Nexstar’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act.

Based upon that evaluation, Nexstar’s ~~President~~Chairman and Chief Executive Officer and its President, Chief Operating Officer and Chief Financial Officer concluded that as of the end of the period covered by this report, Nexstar’s disclosure controls and procedures were effective, at a reasonable assurance level, to ensure that information required to be disclosed in the reports that it files or submits under the Exchange Act (i) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) is accumulated and communicated to Nexstar’s management, including its ~~President~~Chairman and Chief Executive Officer and its President, Chief Operating Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

As of the quarter ended ~~June 30, 2020,~~March 31, 2021, there have been no changes in Nexstar’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting. Nexstar has not experienced any significant impact to its internal controls over financial reporting ~~despite the fact that most of its employees are working remotely due~~related to the COVID-19 pandemic. Nexstar is continually monitoring and assessing the COVID-19 situation on its internal controls to minimize the impact on their design and operating effectiveness.

~~Except as set forth below,as of June 30, 2020, there~~There have been no material changes to the risk factors that were previously disclosed in Item 1A in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 filed with the SEC on March ~~2, 2020.~~ 1, 2021.~~We have also updated the risk factor related to COVID-19 pandemic that was previously identified in the first quarter of 2020 as follows:~~

Our business, results of operations, financial condition, cash flows and stock price have been and may continue to be adversely affected by pandemics, epidemics or other public health emergencies, such as the recent outbreak of COVID-19.

Our business, results of operations, financial condition, cash flows and stock price have been and may continue to be adversely affected by the COVID-19 outbreak. In March 2020, the World Health Organization characterized COVID-19 as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The outbreak has resulted in governments in the U.S. and around the world implementing increasingly stringent measures to help control the spread of the virus, including quarantines, “shelter in place” and “stay at home” orders, travel restrictions, business curtailments, school closures, and other measures.

We are considered an essential industry, as defined by the U.S. Department of Homeland Security. Although we have continued to operate our facilities to date consistent with federal guidelines and state and local orders, the outbreak of COVID-19 and any preventive or protective actions taken by governmental authorities have had and may continue to have a material adverse effect on our workforce and operations, customers (e.g. advertisers and advertising agencies) and supply chain. The impact of COVID-19 significantly reduced the demand for television advertising in the second quarter of 2020 and has had, and may continue to have, a material adverse impact on our financial condition, results of operations and cash flows in the second half of 2020 and/or in the future. The extent to which COVID-19 may adversely impact our business in the future depends on future developments, which are highly uncertain and unpredictable, depending upon the severity and duration of the outbreak and the effectiveness of actions in the United States taken to contain or mitigate its effects. Any resulting financial impact cannot be estimated reasonably at this time, but may materially adversely affect our business, results of operations, financial condition and cash flows. Even after the COVID-19 pandemic has subsided, we may experience materially adverse impacts to our business due to any resulting economic recession or depression. Additionally, concerns over the economic impact of COVID-19 have caused extreme volatility in financial and other capital markets, which has and may continue to adversely impact our stock price and our ability to access capital markets.

Our liquidity could also be negatively impacted if these conditions continue for a significant period of time and we may be required to pursue additional sources of financing to obtain working capital to meet our business operating requirements, our capital expenditures and to continue to service our debt. Capital and credit markets have been disrupted by the crisis and our ability to obtain any required financing on reasonable terms or at all is not guaranteed and largely dependent upon evolving market conditions and other factors. Depending on the continued impact of the crisis, further actions may be required to improve the Company’s cash position, working capital and capital structure. Our credit rating could also be negatively affected, which could also impact our liquidity, our financial condition and our ability to obtain financing.

A sustained economic downturn may also result in the carrying values of our major assets, including goodwill, indefinite-lived intangible assets, long-lived assets and equity investments exceeding their fair value, which may require us to recognize an impairment to those assets. A sustained downturn in the financial markets and related pension asset values may have the effect of increasing our pension funding obligations in order to ensure that our qualified pension plans continue to be adequately funded, which may divert cash flow from other uses.

To the extent the COVID-19 pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in our Annual Report on Form 10-K for the year ended December 31, 2019, such as those relating to our products and financial performance.

The following is a summary of Nexstar’s repurchases of its Class A common stock by month during the quarter ended March 31, 2021:

As of March 31, 2021, we had a remaining balance of $1.054 billion available under the share repurchase program.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Delaware		23-3083125
(State of Incorporation or Organization)		(I.R.S. Employer Identification No.)

545 E. John Carpenter Freeway, Suite 700, Irving, Texas		75062
(Address of Principal Executive Offices)		(Zip Code)

				Page
PART I		FINANCIAL INFORMATION

ITEM 1.		Financial Statements (Unaudited)

		Condensed Consolidated Balance Sheets as of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019~~2020		1

		Condensed Consolidated Statements of Operations for the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~		2

		Condensed Consolidated ~~Statement~~Statements of Changes in Stockholders’ Equity for the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~		3

		Condensed Consolidated Statements of Cash Flows for the ~~six~~three months ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~		54

		Notes to Condensed Consolidated Financial Statements
	Note 1: Organization and Business Operations		65
	Note 2: Summary of Significant Accounting Policies		65
	Note 3: Acquisitions and Dispositions		1210
	Note 4: Intangible Assets and Goodwill		1411
	Note 5: ~~Assets Held for Sale~~Investments		12
	Note 6: Accrued Expenses		13
	Note 7: Retirement and Post Retirement Plans		14
	Note 8: Debt		15
	Note ~~6: Investments~~9: Leases		1516
	Note ~~7: Accrued Expenses~~10: Fair Value Measurements		17
	Note ~~8: Retirement and Post Retirement Plans~~		17
	~~Note 9: Debt~~11: Common Stock		18
	Note ~~10: Leases~~12: Income Taxes		2018
	Note ~~11: Fair Value Measurements~~13: FCC Regulatory Matters		18
	Note 14: Commitments and Contingencies		21
	Note ~~12: Common Stock~~		22
	~~Note 13: Income Taxes~~		22
	~~Note 14: FCC Regulatory Matters~~15: Segment Data		23
	Note ~~15: Commitments and Contingencies~~		25
	~~Note~~ 16: ~~Segment Data~~		29
	~~Note 17:~~ Subsequent Events		3024

ITEM 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		3125

ITEM 3.		Quantitative and Qualitative Disclosures About Market Risk		4838

ITEM 4.		Controls and Procedures		4838

PART II		OTHER INFORMATION

ITEM 1.		Legal Proceedings		4939

ITEM 1A.		Risk Factors		4939

ITEM 2.		Unregistered Sales of Equity Securities and Use of Proceeds		5039

ITEM 3.		Defaults Upon Senior Securities		5039

ITEM 4.		Mine Safety Disclosures		5039

ITEM 5.		Other Information		5039

ITEM 6.		Exhibits		5140

~~Service Agreements~~Owner	~~Owner~~Service Agreements	Full Power Stations
~~TBA Only~~Mission	~~Mission Broadcasting, Inc. ("Mission")~~TBA Only SSA & JSA SSA Only	WFXP, KHMT, KFQX and ~~KFQX~~WPIX
~~LMA Only~~	~~WNAC, LLC~~	~~WNAC~~
	~~54 Broadcasting, Inc. (“54 Broadcasting”)~~	~~KNVA~~
~~SSA & JSA~~	~~Mission~~	KJTL, KLRT, KASN, KOLR, KCIT, KAMC, KRBC, KSAN, WUTR, WAWV, WYOU, KODE, WTVO, KTVE, WTVW, WVNY, WXXA and ~~WVNY~~WLAJ KMSS, KPEJ, KLJB, KWBQ, KASY and KRWB
White Knight Broadcasting	SSA & JSA	~~White Knight Broadcasting (“White Knight”)~~	WVLA, KFXK and KSHV
	~~Shield Media, LLC (“Shield”)~~	~~WXXA and WLAJ~~
	Vaughan Media, LLC (“Vaughan”)	SSA & JSA	WBDT, WYTV and KTKA
~~SSA~~	LMA Only	~~Tamer Media,~~KNVA
WNAC, LLC ~~(“Tamer”)~~	~~KWBQ, KASY and KRWB~~LMA Only	WNAC

	March 31, 2021		December 31, 2020
Current assets	$	4,496	$	4,402
Property and equipment, net		15,839		16,137
Goodwill		63,795		63,795
FCC licenses		203,967		204,720
Network affiliation agreements, net		30,797		31,571
Other noncurrent assets, net		2,361		2,568
Total assets	$	321,255	$	323,193

Current liabilities	$	31,694	$	30,335
Noncurrent liabilities		116,570		112,254
Total liabilities	$	148,264	$	142,589

	March 31, 2021		December 31, 2020
Equity method investments	$	1,173,478	$	1,321,715
Other equity investments		12,063		12,063
Total investments	$	1,185,541	$	1,333,778


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

Emerging growth company	☐

	June 30, 2020			December 31, 2019
Term loans	$	5,444,386		$	5,914,703
5.625% Notes due 2024		900,000			900,000
5.625% Notes due 2027		1,785,000			1,785,000
Total outstanding principal		8,129,386			8,599,703
Less: unamortized financing costs and discount - Term Loans		(88,695	)		(104,281	)
Less: unamortized financing costs and discount - 5.625% Notes due 2024		(8,995	)		(9,955	)
Add: unamortized premium, net of financing costs - 5.625% Notes due 2027		6,372			7,121
Total outstanding debt		8,038,068			8,492,588
Less: current portion		(60,491	)		(109,310	)
Long-term debt, net of current portion	$	7,977,577		$	8,383,278

	June 30, 2020				December 31, 2019
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Term loans⁽¹⁾	$	5,355,691	$	5,151,202	$	5,810,422	$	5,915,451
5.625% Senior unsecured notes due 2024⁽²⁾		891,005		900,000		890,045		938,250
5.625% Senior unsecured notes due 2027⁽²⁾		1,791,372		1,767,150		1,792,121		1,883,175

Three Months Ended June 30, 2019	Broadcast		Other			Consolidated
Net revenue	$	621,895	$	27,117		$	649,012
Depreciation		25,422		2,668			28,090
Amortization of intangible assets		30,770		5,587			36,357
Income (loss) from operations		192,093		(42,149	)		149,944

As of March 31, 2021	Broadcast		Other		Consolidated
Goodwill	$	2,872,629	$	109,878	$	2,982,507
Assets⁽¹⁾		12,760,333		587,216		13,347,549

As of December 31, 2020	Broadcast		Other		Consolidated
Goodwill	$	2,874,274	$	109,734	$	2,984,008
Assets⁽¹⁾		12,352,509		1,051,767		13,404,276

As of June 30, 2020	Broadcast		Other		Consolidated
Goodwill	$	2,880,675	$	-	$	2,880,675
Assets		12,108,589		1,431,467		13,540,056

As of December 31, 2019	Broadcast		Other		Consolidated
Goodwill	$	2,996,875	$	-	$	2,996,875
Assets		12,918,966		1,070,771		13,989,737

					Total Number of Shares		Approximate Dollar Value
					Purchased as Part of		of Shares That May Yet Be
	Total Number		Average Price		Publicly Announced		Purchased Under the
	of Shares Purchased		Paid per Share		Plans or Programs		Plans or Programs
February 2, 2021		8,730	$	114.74		8,730	$	1,173,932,949
March 2 - 29, 2021		799,800	$	150.03		799,800		1,053,939,430
		808,530	$	149.65		808,530

Exhibit No.		Description
10.3		Amendment No. 4 to Credit Agreement, dated as of September 3, 2020, by and among Nexstar Broadcasting, Inc. and Bank of America, N.A. as administrative agent (Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K/A (File No. 000-50478) filed by Nexstar Media Group, Inc. on September 9, 2020).
10.4		Amendment No. 3 to Credit Agreement, dated as of September 3, 2020, by and among Mission Broadcasting, Inc. and Bank of America, N.A. as administrative agent Incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K/A (File No. 000-50478) filed by Nexstar Media Group, Inc. on September 9, 2020).
10.5		Indenture, dated as of September 25, 2020, between Nexstar Broadcasting, Inc. and Citibank, N.A., as trustee (Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K (File No. 000-50478) filed by Nexstar Media Group, Inc. on September 25, 2020).
10.6		Executive Employment Agreement, dated as of September 25, 2020, between Thomas E. Carter and Nexstar Media Group, Inc. (Incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K (File No. 000-50478) filed by Nexstar Media Group, Inc. on October 1, 2020).
10.7		Executive Employment Agreement, dated as of September 5, 2019, between Dana Zimmer and Nexstar Media Group, Inc.*
31.1		Certification of Perry A. Sook pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2		Certification of Thomas E. Carter pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1		Certification of Perry A. Sook pursuant to 18 U.S.C. ss. 1350.*
32.2		Certification of Thomas E. Carter pursuant to 18 U.S.C. ss. 1350.*
101		The Company’s unaudited Condensed Consolidated Financial Statements and related Notes for the quarter ended ~~June 30, 2020~~March 31, 2021 from this Quarterly Report on Form 10-Q, formatted in iXBRL (Inline eXtensible Business Reporting Language).*
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

NEXSTAR MEDIA GROUP, INC.

		/S/ PERRY A. SOOK
By:		Perry A. Sook
Its:		~~President~~Chairman and Chief Executive Officer (Principal Executive Officer)

		/S/ THOMAS E. CARTER
By:		Thomas E. Carter
Its:		President, Chief Operating Officer and Chief Financial Officer (Principal Accounting and Financial Officer)