Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | TEGNA INC |
Entity Central Index Key | 39,899 |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2017 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock Shares Outstanding | 215,115,749 |
Trading Symbol | TGNA |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 65,669 | $ 15,879 |
Accounts receivable, net of allowances of $3,352 and $3,404, respectively | 382,011 | 386,074 |
Other receivables | 14,150 | 20,685 |
Prepaid expenses and other current assets | 54,726 | 62,090 |
Current discontinued operations assets | 749,725 | 305,960 |
Total current assets | 1,266,281 | 790,688 |
Property and equipment | ||
Cost | 807,810 | 805,349 |
Less accumulated depreciation | (447,503) | (430,028) |
Net property and equipment | 360,307 | 375,321 |
Intangible and other assets | ||
Goodwill | 2,579,417 | 2,579,417 |
Indefinite-lived and amortizable intangible assets, less accumulated amortization | 1,284,062 | 1,294,839 |
Investments and other assets | 157,665 | 180,616 |
Noncurrent discontinued operations assets | 0 | 3,321,844 |
Total intangible and other assets | 4,021,144 | 7,376,716 |
Total assets | 5,647,732 | 8,542,725 |
Current liabilities | ||
Accounts payable | 55,308 | 99,568 |
Accrued liabilities | 198,842 | 200,417 |
Dividends payable | 15,161 | 30,178 |
Income taxes | 19,028 | 11,448 |
Current portion of long-term debt | 646 | 646 |
Current discontinued operations liabilities | 219,343 | 276,924 |
Total current liabilities | 508,328 | 619,181 |
Noncurrent liabilities | ||
Income taxes | 19,984 | 22,644 |
Deferred income taxes | 601,429 | 648,920 |
Long-term debt | 3,345,986 | 4,042,749 |
Pension liabilities | 180,532 | 187,290 |
Other noncurrent liabilities | 65,792 | 75,438 |
Noncurrent discontinued operations liabilities | 0 | 347,233 |
Total noncurrent liabilities | 4,213,723 | 5,324,274 |
Total liabilities | 4,722,051 | 5,943,455 |
Redeemable noncontrolling interests related to discontinued operations | 51,503 | 46,265 |
TEGNA Inc. shareholders’ equity | ||
Common stock of $1 par value per share, 800,000,000 shares authorized, 324,418,632 shares issued | 324,419 | 324,419 |
Additional paid-in capital | 395,812 | 473,742 |
Retained earnings | 5,750,260 | 7,384,556 |
Accumulated other comprehensive loss | (145,876) | (161,573) |
Less treasury stock at cost, 109,302,883 shares and 109,930,832 shares, respectively | (5,675,530) | (5,749,726) |
Total TEGNA Inc. shareholders’ equity | 649,085 | 2,271,418 |
Noncontrolling interests related to discontinued operations | 225,093 | 281,587 |
Total equity | 874,178 | 2,553,005 |
Total liabilities, redeemable noncontrolling interests and equity | $ 5,647,732 | $ 8,542,725 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 3,352 | $ 3,404 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, Authorized shares | 800,000,000 | 800,000,000 |
Common stock, Issued shares | 324,418,632 | 324,418,632 |
Treasury stock, shares | 109,302,883 | 109,930,832 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 489,369 | $ 476,978 | $ 948,439 | $ 937,616 |
Operating expenses: | ||||
Cost of revenues, exclusive of depreciation | 229,683 | 196,935 | 461,091 | 389,563 |
Business units - Selling, general and administrative expenses, exclusive of depreciation | 75,302 | 81,975 | 143,731 | 163,241 |
Corporate - General and administrative expenses, exclusive of depreciation | 14,248 | 14,351 | 29,581 | 27,838 |
Depreciation | 13,318 | 14,478 | 26,535 | 29,441 |
Amortization of intangible assets | 5,388 | 5,775 | 10,777 | 11,767 |
Asset impairment and facility consolidation charges | 1,350 | 3,728 | 3,533 | 3,728 |
Total | 339,289 | 317,242 | 675,248 | 625,578 |
Operating income | 150,080 | 159,736 | 273,191 | 312,038 |
Non-operating expense: | ||||
Equity loss in unconsolidated investments, net | (946) | (4,996) | (2,415) | (1,565) |
Interest expense | (54,843) | (56,143) | (110,258) | (117,843) |
Other non-operating items | (21,108) | (4,562) | (23,182) | (4,155) |
Total | (76,897) | (65,701) | (135,855) | (123,563) |
Income before income taxes | 73,183 | 94,035 | 137,336 | 188,475 |
Provision for income taxes | 23,913 | 27,037 | 43,408 | 53,597 |
Net Income from continuing operations | 49,270 | 66,998 | 93,928 | 134,878 |
(Loss) income from discontinued operations, net of tax | (241,699) | 47,387 | (222,458) | 75,443 |
Net (loss) income | (192,429) | 114,385 | (128,530) | 210,321 |
Net loss (income) attributable to noncontrolling interests from discontinued operations | 62,077 | (14,934) | 55,892 | (25,426) |
Net (loss) income attributable to TEGNA Inc. | $ (130,352) | $ 99,451 | $ (72,638) | $ 184,895 |
Earnings from continuing operations per share - basic (in dollars per share) | $ 0.23 | $ 0.31 | $ 0.44 | $ 0.62 |
(Loss) earnings from discontinued operations per share - basic (in dollars per share) | (0.83) | 0.15 | (0.77) | 0.23 |
Net (loss) income per share – basic (In dollars per share) | (0.60) | 0.46 | (0.33) | 0.85 |
Earnings from continuing operations per share - diluted (in dollars per share) | 0.23 | 0.30 | 0.43 | 0.61 |
(Loss) earnings from discontinued operations per share - diluted (in dollars per share) | (0.83) | 0.15 | (0.77) | 0.23 |
Net (loss) income per share – diluted (In dollars per share) | $ (0.60) | $ 0.45 | $ (0.34) | $ 0.84 |
Weighted average number of common shares outstanding: | ||||
Basic shares | 215,501 | 216,518 | 215,404 | 217,902 |
Diluted shares | 217,812 | 220,204 | 217,691 | 221,729 |
Dividends declared per share (in dollars per share) | $ 0.07 | $ 0.14 | $ 0.21 | $ 0.28 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (192,429) | $ 114,385 | $ (128,530) | $ 210,321 |
Redeemable noncontrolling interests (earnings not available to shareholders) | (1,017) | (1,350) | (2,832) | (2,275) |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | 7,099 | (7,162) | 9,362 | (5,961) |
Recognition of previously deferred post-retirement benefit plan costs | 2,327 | 2,422 | 4,402 | 4,322 |
Unrealized gains (losses) on available for sale investment during the period | 4,069 | (2,292) | 1,776 | (4,275) |
Other comprehensive income (loss), before tax | 13,495 | (7,032) | 15,540 | (5,914) |
Income tax effect related to components of other comprehensive income | (896) | (942) | (1,693) | (1,680) |
Other comprehensive income (loss), net of tax | 12,599 | (7,974) | 13,847 | (7,594) |
Comprehensive (loss) income | (180,847) | 105,061 | (117,515) | 200,452 |
Comprehensive income (loss) attributable to noncontrolling interests, net of tax | 59,750 | (10,211) | 54,315 | (20,343) |
Comprehensive (loss) income attributable to TEGNA Inc. | $ (121,097) | $ 94,850 | $ (63,200) | $ 180,109 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (128,530) | $ 210,321 |
Adjustments to reconcile net income to net cash flow from operating activities: | ||
Depreciation and amortization | 97,181 | 101,402 |
Stock-based compensation | 10,160 | 9,055 |
Loss on write down of CareerBuilder | 344,772 | 0 |
Other losses on sales of assets and impairment charges | 11,506 | 8,863 |
Equity loss in unconsolidated investments, net | 2,354 | 2,981 |
Pension expense, net of contributions | (1,843) | 1,093 |
Change in other assets and liabilities, net | (96,295) | (104,471) |
Net cash flow from operating activities | 239,305 | 229,244 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (49,703) | (40,050) |
Payments for acquisitions of businesses, net of cash acquired | 0 | (53,552) |
Payments for investments | (1,363) | (15,997) |
Proceeds from investments | 502 | 4,617 |
Proceeds from sale of assets | 5,556 | 0 |
Net cash flow used for investing activities | (45,008) | (104,982) |
Cash flows from financing activities: | ||
(Payments) proceeds of borrowings under revolving credit facilities, net | (635,000) | 310,000 |
Proceeds from Cars.com borrowings | 675,000 | 0 |
Debt repayments | (66,124) | (229,552) |
Payments of Cars.com debt issuance costs | (6,208) | 0 |
Dividends paid | (60,073) | (61,462) |
Repurchases of common stock | (8,453) | (150,917) |
Cash transferred to the Cars.com business | (20,133) | 0 |
Other, net | (5,795) | (19,378) |
Net cash flow used for financing activities | (126,786) | (151,309) |
Increase (decrease) in cash and cash equivalents | 67,511 | (27,047) |
Cash and cash equivalents from continuing operations, beginning of period | 15,879 | 26,096 |
Cash and cash equivalents from discontinued operations, beginning of period | 61,041 | 103,104 |
Balance of cash and cash equivalents, beginning of period | 76,920 | 129,200 |
Cash and cash equivalents from continuing operations, end of period | 65,669 | 15,016 |
Cash and cash equivalents from discontinued operations, end of period | 78,762 | 87,137 |
Balance of cash and cash equivalents, end of period | 144,431 | 102,153 |
Supplemental cash flow information: | ||
Cash paid for income taxes, net of refunds | 64,999 | 104,646 |
Cash paid for interest | $ 104,834 | $ 116,247 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation Basis of presentation: Our accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting, the instructions for Form 10-Q and Article 10 of the U.S. Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all information and footnotes which are normally included in the Form 10-K and annual report to shareholders. In our opinion, the condensed consolidated financial statements reflect all adjustments of a normal recurring nature necessary for a fair presentation of results for the interim periods presented. The condensed consolidated financial statements should be read in conjunction with our (or “TEGNA’s”) audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Significant estimates include, but are not limited to, evaluation of goodwill and other intangible assets for impairment, fair value measurements, post-retirement benefit plans, income taxes including deferred taxes, and contingencies. The condensed consolidated financial statements include the accounts of subsidiaries we control and variable interest entities (VIEs) if we are the primary beneficiary. We eliminate all intercompany balances, transactions, and profits in consolidation. Investments in entities over which we have significant influence, but do not have control, are accounted for under the equity method. Our share of net earnings and losses from these ventures is included in “Equity (loss) income in unconsolidated investments, net” in the Consolidated Statements of Income. In addition, certain reclassifications have been made to prior years’ consolidated Statements of Income to conform to the current year’s presentation. On May 31, 2017, we completed the spin-off of our digital automotive marketplace business, Cars.com. The financial position and results of operations of Cars.com are reflected as discontinued operations for all periods presented through the date of the spin-off. In addition, on June 17, 2017, we entered into a definitive agreement to sell a majority of our ownership stake in our CareerBuilder business. As a result, we have determined that CareerBuilder meets the criteria to be classified as held for sale and presented as discontinued operations for all periods presented. As such, CareerBuilder assets and liabilities have been reclassified to discontinued operations, as have its results from operations. Our Digital Marketing Services business is now reported within our Media business. As a result of these strategic actions, we have disposed of, or committed to dispose of, substantially all of our Digital Segment business and have therefore classified its historical financial results as discontinued operations. The financial statements and footnotes have been revised accordingly to reflect these strategic actions and their impact on our condensed consolidated financial statements. See Note 12, “Discontinued Operations”, for further details regarding the spin-off of Cars.com and the sale of CareerBuilder and the impact of each transaction on our condensed consolidated financial statements. Accounting guidance adopted in 2017: In March 2017, the Financial Accounting Standards Board (FASB) issued new guidance that changes the presentation of net periodic pension and other post-retirement benefit costs (post-retirement benefit costs) in the Consolidated Statements of Income. Under this new guidance, the service cost component of the post-retirement benefit expense will continue to be presented as an operating expense while all other components of post-retirement benefit expense will be presented as non-operating expense. Previously, all components of post-retirement benefit expense were presented as operating expense in the Consolidated Statements of Income. The FASB permitted early adoption of this guidance, and we elected to early adopt in the first quarter of 2017. We believe the new guidance provides enhanced financial reporting by limiting operating expense classification to the service cost component of post-retirement benefit expense. Service cost is the component of the expense that relates to services provided by employees in the current period and thus better reflects the current continuing operating costs. Changes to the classification of Consolidated Statements of Income amounts resulting from the new guidance were made on a retrospective basis, wherein each period presented was adjusted to reflect the effects of applying the new guidance. We utilized amounts previously disclosed in our retirement plan footnote to retrospectively apply the guidance. As a result of adopting this guidance, operating expenses in the second quarter and for the first six months of 2017 were lower by $1.9 million and $3.3 million , respectively, while non-operating expenses were higher by the same amounts. In 2016, operating expenses in the second quarter and first six months were reduced by $2.6 million and $4.0 million , respectively, with corresponding increases in non-operating expenses as a result of adopting this new guidance. Net income, earnings per share, and retained earnings were not impacted by the new guidance. In January 2017, the FASB issued guidance that eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of today’s goodwill impairment test) to measure a goodwill impairment charge. Instead, companies will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on Step 1 of the impairment test). The FASB permitted early adoption of this guidance, and we elected to early adopt in the second quarter of 2017 in connection with the calculation of CareerBuilder’s goodwill impairment charge, discussed in Note 12. New accounting pronouncements not yet adopted: In May 2014, the FASB issued new guidance related to revenue recognition. Under the new guidance, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the guidance requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We will adopt the guidance beginning January 1, 2018. The two permitted transition methods are the full retrospective method, in which case the guidance would be applied to each prior reporting period presented and the cumulative effect of applying the guidance would be recognized at the earliest period shown; and the modified retrospective method, in which case the cumulative effect of applying the guidance would be recognized at the date of initial application. We will adopt the guidance using the modified retrospective method. While we continue to evaluate the full impact of the guidance, we do not believe that it will have a material impact on our consolidated financial statements. We are in the process of evaluating the other requirements of the new standard, which may result in additional revenue related disclosures. Based on our evaluation performed to date, we believe that 90% of our revenues will not be materially impacted by the new guidance. Specifically, our television spot advertising contracts, which comprised approximately 60% of 2016 revenue are short-term in nature with transaction price consideration agreed upon in advance. We expect revenue will continue to be recognized when commercials are aired. Further, we expect that revenue earned under retransmission agreements will be recognized under the licensing of intellectual property guidance in the standard, which will not have a material change to our current revenue recognition. Subscription revenue comprised approximately 30% of 2016 revenue. We continue to evaluate the impact to our online digital and other services revenue. In January 2016, the FASB issued new guidance that amended several elements surrounding the recognition and measurement of financial instruments. Most notably for our company, the new guidance requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation) to be measured at fair value with changes in fair value recognized in net income. Under current GAAP, changes in fair value for our available for sale equity investment are recorded as unrealized gains or losses through other comprehensive income until such investment is sold or deemed impaired. The new guidance is effective for public companies beginning in the first quarter of 2019 and will be adopted using a cumulative-effect adjustment. Early adoption is permitted. We do not believe this standard will have a material impact on our financial statements. Previously we had recorded approximately $4.0 million in unrealized losses on our available for sale investment in the Consolidated Statements of Comprehensive Income as of March 31, 2017. During the second quarter of 2017 we determined that the available for sale investment was other than temporarily impaired, and recognized an inception to date loss on the investment in the Consolidated Statement of Income. Losses of this nature will be recorded within the Consolidated Statements of Income in the quarter in which they occur upon adoption of the guidance in the first quarter of 2019. In February 2016, the FASB issued new guidance related to leases which will require lessees to recognize assets and liabilities on the balance sheet for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new guidance will require both types of leases to be recognized on the balance sheet. The new guidance is effective for us beginning in the first quarter of 2019 and will be adopted using a modified retrospective approach. We are currently evaluating the effect it is expected to have on our consolidated financial statements and related disclosures. In June 2016, the FASB issued new guidance related to the measurement of credit losses on financial instruments. The new guidance changes the way credit losses on accounts receivable are estimated. Under current GAAP, credit losses on accounts receivable are recognized once it is probable that such losses will occur. Under the new guidance, we will be required to estimate credit losses based on the expected amount of future collections which may result in earlier recognition of allowance for doubtful accounts. The new guidance is effective for public companies beginning in the first quarter of 2020 and will be adopted using a modified retrospective approach. We are currently evaluating the effect this new guidance will have on our consolidated financial statements and related disclosures. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets The following table displays goodwill, indefinite-lived intangible assets, and amortizable intangible assets as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 Dec. 31, 2016 Gross Accumulated Amortization Gross Accumulated Amortization (recast) (recast) Goodwill $ 2,579,417 $ — $ 2,579,417 $ — Indefinite-lived intangibles: Television station FCC licenses 1,191,950 — 1,191,950 — Amortizable intangible assets: Retransmission agreements 110,191 (54,817 ) 110,191 (47,280 ) Network affiliation agreements 43,485 (16,908 ) 43,485 (14,445 ) Other 15,763 (5,602 ) 15,763 (4,825 ) Total indefinite-live and amortizable intangible assets $ 1,361,389 $ (77,327 ) $ 1,361,389 $ (66,550 ) Our retransmission agreements and network affiliation agreements are amortized on a straight-line basis over their estimated useful lives. Other intangibles primarily include customer relationships which are amortized on a straight-line basis over their useful lives. During the second quarter of 2017, we recorded a goodwill impairment charge within discontinued operations related to our CareerBuilder reporting unit as a result of our plan to sell our majority of our ownership interest. See Note 12 for further discussion. |
Investments and Other Assets
Investments and Other Assets | 6 Months Ended |
Jun. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Investments and other assets | Investments and other assets Our investments and other assets consisted of the following as of June 30, 2017, and December 31, 2016 (in thousands): June 30, 2017 Dec. 31, 2016 (recast) Cash value life insurance $ 63,701 $ 64,134 Deferred compensation investments 28,667 23,715 Equity method investments 15,831 18,016 Available for sale investment — 16,744 Deferred debt issuance cost 7,968 9,856 Other long term assets 41,498 48,151 Total $ 157,665 $ 180,616 Deferred compensation investments : Employee compensation-related investments consist of debt and equity securities which are classified as trading securities and fund our deferred compensation plan liabilities. Equity method investments : Investments over which we have the ability to exercise significant influence but do not control, are accounted for under the equity method of accounting. Significant influence typically exists when we own between 20% and 50% of the voting interests in a corporation, own more than a minimal investment in a limited liability company, or hold substantial management rights in the investee. Under this method of accounting, our share of the net earnings or losses of the investee is included in non-operating income on our Consolidated Statements of Income. We evaluate our equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. Certain differences exist between our investment carrying value and the underlying equity of the investee companies, principally due to fair value measurement at the date of investment acquisition and due to impairment charges we recorded for certain investments. Available for sale investment : Our investment in Gannett Co., Inc., common stock, previously classified as a noncurrent asset, was reclassified to a current asset in the second quarter of 2017 due to our intent to sell the investment by the end of 2017. Other long term assets : During the quarter and six months ended June 30, 2017, we recognized a $5.8 million loss associated with a write-off of a note receivable from one of our equity method investments. This loss is reflected in Other non-operating items, in the accompanying Consolidated Statements of Income. The loss was a result of a decision made during the second quarter by the investee’s board of directors to discontinue the business, and the investee not having sufficient funds to repay the full note at that time. Cost method investments : The carrying value of cost method investments was $15.1 million of June 30, 2017 and $14.8 million as of December 31, 2016, and is included within other long term assets in the table above. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was approximately $9.9 million as of June 30, 2017, and $10.8 million as of December 31, 2016. The amount of accrued interest and penalties payable related to unrecognized tax benefits was $1.1 million as of June 30, 2017, and $1.5 million as of December 31, 2016. It is reasonably possible that the amount of unrecognized benefits with respect to certain of our unrecognized tax positions will increase or decrease within the next 12 months. These changes may be the result of settlement of ongoing audits, lapses of statutes of limitations or other regulatory developments. At this time, we estimate the amount of gross unrecognized tax positions may be reduced by up to approximately $0.7 million within the next 12 months primarily due to lapses of statutes of limitations and settlement of ongoing audits in various jurisdictions. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt Our long-term debt is summarized below (in thousands): June 30, 2017 Dec. 31, 2016 Unsecured floating rate term loan due quarterly through August 2018 $ 36,300 $ 52,100 VIE unsecured floating rate term loans due quarterly through December 2018 969 1,292 Unsecured floating rate term loan due quarterly through June 2020 120,000 140,000 Unsecured floating rate term loan due quarterly through September 2020 255,000 285,000 Borrowings under revolving credit agreement expiring June 2020 — 635,000 Unsecured notes bearing fixed rate interest at 5.125% due October 2019 600,000 600,000 Unsecured notes bearing fixed rate interest at 5.125% due July 2020 600,000 600,000 Unsecured notes bearing fixed rate interest at 4.875% due September 2021 350,000 350,000 Unsecured notes bearing fixed rate interest at 6.375% due October 2023 650,000 650,000 Unsecured notes bearing fixed rate interest at 5.50% due September 2024 325,000 325,000 Unsecured notes bearing fixed rate interest at 7.75% due June 2027 200,000 200,000 Unsecured notes bearing fixed rate interest at 7.25% due September 2027 240,000 240,000 Total principal long-term debt 3,377,269 4,078,392 Debt issuance costs (24,873 ) (27,615 ) Other (fair market value adjustments and discounts) (5,764 ) (7,382 ) Total long-term debt 3,346,632 4,043,395 Less current portion of long-term debt maturities of VIE loans 646 646 Long-term debt, net of current portion $ 3,345,986 $ 4,042,749 In connection with and prior to the completion of the spin-off, Cars.com borrowed an aggregate principal amount of approximately $675 million under a revolving credit facility agreement. The proceeds were used to make a tax-free distribution of $650 million from Cars.com to TEGNA. TEGNA used $609.9 million of the tax-free distribution proceeds to fully pay down our outstanding revolving credit agreement borrowings plus accrued interest. As of June 30, 2017, we had an unused borrowing capacity of $ 1.5 billion under our revolving credit facility. The approximately $40 million of remaining proceeds of the tax-free distribution from Cars.com will be used to pay down historical debt outstanding. In addition, we intend to use the proceeds from the sale of our majority interest in CareerBuilder to pay down existing debt and for other general corporate purposes (see Note 12). On August 1, 2017, we amended our Amended and Restated Competitive Advance and Revolving Credit Agreement. Under the amended terms, our maximum total leverage ratio will remain at 5.0 x through June 30, 2018, after which, as amended, it will be reduced to 4.75 x through June 2019 and then to 4.5 x until the termination of the credit agreement on June 29, 2020. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement plans | Retirement plans Our principal defined benefit pension plan is the TEGNA Retirement Plan (TRP). The disclosure table below includes the pension expenses of the TRP and the TEGNA Supplemental Retirement Plan (SERP). The total net pension obligations, both current and non-current liabilities, as of June 30, 2017, were $211.5 million ( $31.0 million is recorded as a current obligation within accrued liabilities on the Condensed Consolidated Balance Sheet). Our pension costs, which include costs for the qualified TRP plan and the nonqualified SERP plan, are presented in the following table (in thousands): Quarter ended June 30, Six months ended June 30, 2017 2016 2017 2016 Service cost-benefits earned during the period $ 311 $ 158 $ 436 $ 408 Interest cost on benefit obligation 6,056 6,837 11,981 13,187 Expected return on plan assets (6,511 ) (6,632 ) (13,161 ) (13,382 ) Amortization of prior service cost 167 190 317 340 Amortization of actuarial loss 2,187 2,194 4,162 3,894 Expense for company-sponsored retirement plans $ 2,210 $ 2,747 $ 3,735 $ 4,447 The service cost component of our pension expense is recorded within the operating expense line items Cost of revenue, Business units - Selling, general and administrative, and Corporate - General, and administrative within the Consolidated Statements of Income. All other components of the pension expense are included within the Other non-operating items line item of the Consolidated Statements of Income. In April 2017, we made a $1.7 million contribution to the TRP, and plan to make additional contributions of $20.6 million to the TRP during the remainder of 2017. During the six months ended June 30, 2017 and 2016, we made benefit payments to participants of the SERP of $3.8 million and $3.3 million , respectively. |
Supplemental Equity Information
Supplemental Equity Information | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Supplemental equity information | Supplemental equity information The following table summarizes equity account activity for the six months ended June 30, 2017 and 2016 (in thousands): TEGNA Inc. Shareholders’ Equity Noncontrolling Interests Total Equity Balance at Dec. 31, 2016 $ 2,271,418 $ 281,587 $ 2,553,005 Comprehensive income: Net loss (72,638 ) (55,892 ) (128,530 ) Redeemable noncontrolling interests (income not available to shareholders) — (2,832 ) (2,832 ) Other comprehensive income 9,438 4,409 13,847 Total comprehensive loss (63,200 ) (54,315 ) (117,515 ) Dividends declared (45,055 ) — (45,055 ) Stock-based compensation 10,160 — 10,160 Treasury shares acquired (8,453 ) — (8,453 ) Spin-off of businesses (1,510,342 ) — (1,510,342 ) Other activity, including shares withheld for employee taxes (5,443 ) (2,179 ) (7,622 ) Balance at June 30, 2017 $ 649,085 $ 225,093 $ 874,178 Balance at Dec. 31, 2015 $ 2,191,971 $ 264,773 $ 2,456,744 Comprehensive income: Net income 184,895 25,426 210,321 Redeemable noncontrolling interests (income not available to shareholders) — (2,275 ) (2,275 ) Other comprehensive income (loss) (4,786 ) (2,808 ) (7,594 ) Total comprehensive income 180,109 20,343 200,452 Dividends declared (60,747 ) — (60,747 ) Stock-based compensation 9,055 — 9,055 Treasury shares acquired (150,917 ) — (150,917 ) Other activity, including shares withheld for employee taxes and tax windfall benefits (18,479 ) (1,922 ) (20,401 ) Balance at June 30, 2016 $ 2,150,992 $ 283,194 $ 2,434,186 CareerBuilder owns majority interests in Textkernel, a software company that provides semantic recruitment technology; Economic Modeling Specialists Intl., a software firm that specializes in employment data and labor market analytics; and Workterra, a cloud-based Human Capital Management platform. The minority shareholders of these acquired businesses hold put rights that permit them to put their equity interests to CareerBuilder. Since redemption of the noncontrolling interests is outside of our control, the minority shareholders ’ equity interest are presented on the Condensed Consolidated Balance Sheets in the caption “Redeemable noncontrolling interests related to discontinued operations.” The following table summarizes the components of, and the changes in, Accumulated Other Comprehensive Loss (AOCL), net of tax and noncontrolling interests (in thousands): Retirement Plans Foreign Currency Translation (1) Other Total Quarters Ended: Balance at Mar. 31, 2017 $ (126,063 ) $ (27,363 ) $ (7,965 ) $ (161,391 ) Other comprehensive loss before reclassifications — 3,755 586 4,341 Amounts reclassified from AOCL 1,431 — 9,743 11,174 Other comprehensive income 1,431 3,755 10,329 15,515 Balance at June 30, 2017 $ (124,632 ) $ (23,608 ) $ 2,364 $ (145,876 ) Balance at Mar. 31, 2016 $ (115,334 ) $ (19,494 ) $ 3,691 $ (131,137 ) Other comprehensive income (loss) before reclassifications — (3,788 ) (2,292 ) (6,080 ) Amounts reclassified from AOCL 1,480 — — 1,480 Other comprehensive income (loss) 1,480 (3,788 ) (2,292 ) (4,600 ) Balance at June 30, 2016 $ (113,854 ) $ (23,282 ) $ 1,399 $ (135,737 ) Retirement Plans Foreign Currency Translation (1) Other Total Six Months Ended: Balance at Dec. 31, 2016 $ (127,341 ) $ (28,560 ) $ (5,672 ) $ (161,573 ) Other comprehensive loss before reclassifications — 4,952 (1,707 ) 3,245 Amounts reclassified from AOCL 2,709 — 9,743 12,452 Other comprehensive income (loss) 2,709 4,952 8,036 15,697 Balance at June 30, 2017 $ (124,632 ) $ (23,608 ) $ 2,364 $ (145,876 ) Balance at Dec. 31, 2015 $ (116,496 ) $ (20,129 ) $ 5,674 $ (130,951 ) Other comprehensive income (loss) before reclassifications — (3,153 ) (4,275 ) (7,428 ) Amounts reclassified from AOCL 2,642 — — 2,642 Other comprehensive income (loss) 2,642 (3,153 ) (4,275 ) (4,786 ) Balance at June 30, 2016 $ (113,854 ) $ (23,282 ) $ 1,399 $ (135,737 ) (1) Our entire foreign currency translation adjustment is related to our CareerBuilder business which is held for sale as of June 30, 2017 (see Note 12). Reclassifications from AOCL to the Statement of Income are comprised of pension and other post-retirement components and a loss on our available for sale investment. Pension and other post retirement reclassifications are related to the amortization of prior service costs and amortization of actuarial losses. The loss on our available for sale investments represents an other than temporary impairment (OTTI) recognized on our investment in shares of common stock of Gannett Co., Inc. The OTTI loss represents the amount of loss previously recorded to AOCL which is now being recognized as a non-operating expense on the Consolidated Statement of Income due to the fact that we expect to sell our investment by the end of 2017 and we do not expect the investment to fully recover the losses we have incurred. Amounts reclassified out of AOCL are summarized below (in thousands): Quarter ended Six months ended 2017 2016 2017 2016 Amortization of prior service cost $ 32 $ 80 $ 32 $ 130 Amortization of actuarial loss 2,295 2,342 4,370 4,192 Reclassification of available for sale investment 9,743 — 9,743 — Total reclassifications, before tax 12,070 2,422 14,145 4,322 Income tax effect (896 ) (942 ) (1,693 ) (1,680 ) Total reclassifications, net of tax $ 11,174 $ 1,480 $ 12,452 $ 2,642 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Our earnings per share (basic and diluted) are presented below (in thousands of dollars, except per share amounts): Quarter ended June 30, Six months ended June 30, 2017 2016 2017 2016 Net income from continuing operations $ 49,270 $ 66,998 $ 93,928 $ 134,878 (Loss) income from discontinued operations, net of tax (241,699 ) 47,387 (222,458 ) 75,443 Net loss (income) attributable to noncontrolling interests from discontinued operations 62,077 (14,934 ) 55,892 (25,426 ) Net (loss) income attributable to TEGNA Inc. $ (130,352 ) $ 99,451 $ (72,638 ) $ 184,895 Weighted average number of common shares outstanding - basic 215,501 216,518 215,404 217,902 Effect of dilutive securities: Restricted stock units 818 1,684 905 1,678 Performance share units 761 1,078 651 1,186 Stock options 732 924 731 963 Weighted average number of common shares outstanding - diluted 217,812 220,204 217,691 221,729 Earnings from continuing operations per share - basic $ 0.23 $ 0.31 $ 0.44 $ 0.62 Earnings (loss) from discontinued operations per share - basic (0.83 ) 0.15 (0.77 ) 0.23 Net (loss) income per share - basic $ (0.60 ) $ 0.46 $ (0.33 ) $ 0.85 Earnings from continuing operations per share - diluted $ 0.23 $ 0.30 $ 0.43 $ 0.61 Earnings (loss) from discontinued operations per share - diluted (0.83 ) 0.15 (0.77 ) 0.23 Net (loss) income per share - diluted $ (0.60 ) $ 0.45 $ (0.34 ) $ 0.84 Our calculation of diluted earnings per share includes the impact of the assumed vesting of outstanding restricted stock units, performance share units, and exercises of outstanding stock options based on the treasury stock method when dilutive. The diluted earnings per share amounts exclude the effects of approximately 229,000 and 165,000 stock awards for the three and six months ended June 30, 2017, respectively; and 29,000 and for the three and six months ended June 30, 2016, respectively, as their inclusion would be accretive to earnings per share. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | Fair value measurement We measure and record in the accompanying condensed consolidated financial statements certain assets and liabilities at fair value. U.S. GAAP establishes a hierarchy for those instruments measured at fair value that distinguishes between market data (observable inputs) and our own assumptions (unobservable inputs). The hierarchy consists of three levels: Level 1 - Quoted market prices in active markets for identical assets or liabilities; Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable; and Level 3 - Unobservable inputs developed using our own estimates and assumptions, which reflect those that a market participant would use. The following table summarizes our assets and liabilities measured at fair value in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2017, and December 31, 2016 (in thousands): Fair Value Measurements as of June 30, 2017 Level 1 Level 2 Level 3 Total Available for sale investment 15,037 — — 15,037 Total $ 15,037 $ — $ — $ 15,037 Deferred compensation investments valued using net asset value as a practical expedient: Interest in registered investment companies $ 15,039 Fixed income fund 13,628 Total investments at fair value $ 43,704 Fair Value Measurements as of Dec. 31, 2016 (recast) Level 1 Level 2 Level 3 Total Available for sale investment 16,744 — — 16,744 Total $ 16,744 $ — $ — $ 16,744 Deferred compensation investments valued using net asset value as a practical expedient: Interest in registered investment companies $ 10,140 Fixed income fund 13,575 Total investments at fair value $ 40,459 Available for sale investment : Our investment in shares of common stock of Gannett Co., Inc., which has been classified as a Level 1 asset as the shares are listed on the New York Stock Exchange. During the second quarter of 2017 we recorded an OTTI loss in the non-operating expense line item of the Consolidated Statement of Income, as described in Note 7. Interest in registered investment companies : These investments include one fund which invests in intermediate-term investment grade bonds and a fund which invests in equities listed predominantly on European and Asian exchanges. Funds are valued using the net asset values as quoted through publicly available pricing sources and investments are redeemable on request. Fixed income fund investment : Valued using the net asset value provided monthly by the fund company and shares are generally redeemable on request. There are no unfunded commitments to these investments as of June 30, 2017. In addition to the financial instruments listed in the table above, we hold other financial instruments, including cash and cash equivalents, receivables, accounts payable and debt. The carrying amounts for cash and cash equivalents, receivables and accounts payable approximated their fair values. The fair value of our total long-term debt, based on the bid and ask quotes for the related debt (Level 2), totaled $3.50 billion at June 30, 2017, and $4.19 billion at December 31, 2016. The planned divestiture of our CareerBuilder business, which is classified as held for sale as of June 30, 2017, resulted in a $344.8 million pre-tax loss recorded within discontinued operations, related to writing down the CareerBuilder business to fair value (see Note 12). The write down includes a goodwill impairment charge of $333 million . The valuation used in the Step 1 goodwill impairment test was based on the enterprise value determined in the purchase agreement (which represents Level 3 input in the fair value hierarchy). We also recorded a non-cash impairment charge of $5.8 million associated with the write-off of a note receivable from one of our equity method investments (see Note 3). |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Business segment information | Business segment information Our reportable segment determination is based on our management and internal reporting structure, the nature of products and services offered by the segments, and the financial information that is evaluated regularly by our chief operating decision maker. Following the spin-off of Cars.com and entering into the definitive sales agreement for CareerBuilder, we classify our operations as one operating and reportable segment, Media, which consists of our 46 television stations operating in 38 markets, offering high-quality television programming and digital content. Also included in the Media Segment is our Digital Marketing Services business which was previously reported in our Digital Segment, but was realigned in the second quarter of 2017 and is now reported together with our Media business. As a result of classifying the former Digital Segment’s historical financial results as discontinued operations there is no remaining activity in 2017 as shown in the tables below. The 2016 activity shown below for our Digital Segment relates to our former Cofactor business which did not meet the criteria for discontinued operation reporting when the business was sold in December 2016. The historical periods below have also been updated to restate the historical results of our Digital Marketing Services business into our Media business. Segment operating results are summarized as follows (in thousands): Quarter ended June 30, Six months ended June 30, 2017 2016 2017 2016 (recast) (recast) Revenues: Media $ 489,369 $ 474,268 $ 948,439 $ 932,181 Digital — 2,710 — 5,435 Total $ 489,369 $ 476,978 $ 948,439 $ 937,616 Operating Income (net of depreciation, amortization, asset impairment and facility consolidation charges): Media (a) $ 164,576 $ 179,238 $ 303,291 $ 348,397 Digital — (2,819 ) — (5,468 ) Corporate (a) (14,496 ) (16,683 ) (30,100 ) (30,891 ) Total $ 150,080 $ 159,736 $ 273,191 $ 312,038 Depreciation, amortization, asset impairment and facility consolidation charges: Media $ 19,809 $ 21,290 $ 40,326 $ 41,152 Digital — 359 — 732 Corporate 247 2,332 519 3,052 Total $ 20,056 $ 23,981 $ 40,845 $ 44,936 (a) In the first quarter of 2017, we adopted new accounting guidance that changed the classification of certain components of net periodic pension and other post-retirement benefit expense (post-retirement benefit expense). The service cost component of the post-retirement benefit expense will continue to be presented as an operating expense while all other components of post-retirement benefit expense will be presented as non-operating expense. The prior year period was adjusted to reflect the effects of applying the new guidance. This resulted in an increase to operating income in second quarter of 2017 and 2016 of $1.9 million and $2.6 million and for the six months ended June 30, 2017 and 2016 of $3.3 million and $4.0 million, respectively. Net income, earnings per share, and retained earnings were not impacted by the new standard. |
Other Matters
Other Matters | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other matters | Other matters Commitments, contingencies and other matters We, along with a number of our subsidiaries, are defendants in judicial and administrative proceedings involving matters incidental to our business. We do not believe that any material liability will be imposed as a result of these matters. Voluntary Retirement Program During the first quarter of 2016, we initiated a Voluntary Retirement Program (VRP) at our Media Segment. Under the VRP, Media employees meeting certain eligibility requirements were offered buyout payments in exchange for voluntarily retiring. Eligible non-union employees had until April 7, 2016, to retire under the plan. In 2016, based on acceptances received, we recorded $16.0 million of severance expense. Upon separation, employees accepting the VRP received salary continuation payments primarily based on years of service, the majority of which occurred evenly over the 12-month period following separation date. As of June 30, 2017, we had less than $0.4 million of VRP buyout obligation remaining. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Cars.com spin-off On May 31, 2017, we completed the previously announced spin-off of Cars.com creating two publicly traded companies: TEGNA, an innovative media company with the largest broadcast group among major network affiliates in the top 25 markets; and Cars.com, a leading digital automotive marketplace. The spin-off was effected through a pro rata distribution of all outstanding common shares of Cars.com to TEGNA stockholders of record at the close of business on May 18, 2017 (the “Record Date”). Stockholders retained their TEGNA shares and received one share of Cars.com for every three shares of TEGNA stock they owned on the Record Date. Cars.com began “regular way” trading on the New York Stock Exchange on June 1, 2017 under the symbol “CARS”. In connection with the Cars.com spin-off, we received a one time tax-free cash distribution from Cars.com of $650 million . We used the tax-free distribution proceeds to fully pay down outstanding revolving credit agreement borrowings. We have approximately $40 million of remaining proceeds of the tax-free distribution from Cars.com which will be used to pay down historical debt outstanding (see Note 5). Separation Agreement We entered into a separation agreement with Cars.com which sets forth, among other things, the identified assets transferred, the liabilities assumed and the contracts assigned to each of TEGNA and Cars.com as part of the separation and the conditions related to the distribution of Cars.com outstanding stock to TEGNA stockholders. Transition Services Agreement We entered into a transition services agreement with Cars.com prior to the distribution pursuant to which we and our subsidiaries will provide certain services to Cars.com on an interim and transitional basis, not to exceed 24 months . The services to be provided include certain tax, human resource and risk management consulting services, and certain other short term services to complete a limited number of ongoing analysis projects. The agreed upon charges for such services are generally intended to allow us to recover all costs and expenses of providing such services, and such charges are not expected to be material to either us or Cars.com. The transition services agreement will terminate on the expiration of the term of the last service provided under it, with a minimum service period of 60 days and a maximum service period of 24 months , with most services expected to last for less than the maximum service period following the distribution date. Cars.com generally can terminate a particular service prior to the scheduled expiration date, subject generally to the minimum service period and a minimum notice period of 45 days . Tax Matters Agreement Prior to the separation, we entered into a tax matters agreement that governs the parties’ respective rights, responsibilities and obligations with respect to taxes (including taxes arising in the ordinary course of business and taxes, if any, incurred as a result of any failure of the distribution and certain related transactions to qualify as tax-free for U.S. federal income tax purposes), tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and assistance and cooperation in respect of tax matters. Employee Matters Agreement We entered into an employee matters agreement with Cars.com prior to the distribution to allocate liabilities and responsibilities relating to employment matters, employee compensation and benefit plans and programs and other related matters. The employee matters agreement governs certain compensation and employee benefit obligations with respect to the current and former employees and non-employee directors of each company. The employee matters agreement provides that, unless otherwise specified, Cars.com will be responsible for liabilities associated with employees who will be employed by Cars.com following the separation and former employees whose last employment was with the Cars.com businesses, and we will be responsible for all other current and former TEGNA employees. Cars.com will retain sponsorship of 401(k) retirement plans, deferred compensation plans and other incentive plans maintained for the exclusive benefit of Cars.com employees as well as various welfare plans applicable to the Cars.com employees. CareerBuilder Sale On July 31, 2017 we, together with the other owners of CareerBuilder, a global leader in human capital solutions, sold our majority ownership interest in CareerBuilder to an investor group led by investments funds managed by affiliates of Apollo Global Management, LLC, a leading global alternative investment manager, and the Ontario Teachers’ Pension Plan Board. Our share of the pre-tax cash proceeds from the sale were approximately $250 million (comprised of sale proceeds and a final cash dividend from CareerBuilder prior to the sale), which will be used to retire existing debt and for other general corporate purposes. As part of the agreement, we will remain an ongoing partner in CareerBuilder, reducing our current 53% controlling interest to approximately 17% (or approximately 12% on a fully-diluted basis). As a result, CareerBuilder will no longer be consolidated within our reported operating results. Our remaining ownership interest will be accounted for as an equity method investment. Financial Statement Presentation of Digital Segment As a result of the Cars.com and CareerBuilder strategic actions described above, the operating results and financial position of our former Digital Segment have been included in discontinued operations in the Condensed Consolidated Balance Sheet and Consolidated Statements of Income for all periods presented. CareerBuilder’s assets and liabilities are classified as held for sale on the Consolidated Balance Sheet as of June 30, 2017. The Consolidated Balance Sheet as of December 31, 2016 includes both Cars.com and CareerBuilder. The results of discontinued operations for the quarter and six months ended June 30, 2017 include a $344.8 million pre-tax loss related to writing down CareerBuilder’s net assets to fair value (after noncontrolling interest, $273.5 million of the pre-tax loss is attributable to TEGNA). The pre-tax loss includes a goodwill impairment charge of $333 million and estimated costs to sell the business of $11.8 million . Fair value used for the pre-tax loss was based on the enterprise value of CareerBuilder as determined in the definitive purchase agreement. The carrying value of the assets and liabilities of our former Digital Segment’s discontinued operations as of June 30, 2017 and December 31, 2016 were as follows (in thousands): June 30, Dec. 31, 2017 2016 ASSETS Cash and cash equivalents $ 78,762 $ 61,042 Accounts receivable, net 95,500 214,170 Property and equipment, net 57,440 74,695 Goodwill 358,645 1,488,112 Other Intangibles, net 104,315 1,718,592 Other assets 55,063 71,193 Total assets $ 749,725 $ 3,627,804 LIABILITIES Accounts payable $ 99,679 $ 166,853 Deferred revenue 103,730 110,071 Deferred tax liability 2,731 280,264 Other liabilities 13,203 66,969 Total liabilities $ 219,343 $ 624,157 The financial results of discontinued operations in the second quarter and the six months ended June 30, 2017 and 2016 are presented as a profit (loss) from discontinued operations, net of income taxes, on our Condensed Consolidated Statements of Income. The following table presents the financial results of discontinued operations (in thousands): Quarter ended June 30, Six months ended June 30, 2017 2016 2017 2016 (1) Operating revenues $ 272,746 $ 334,807 $ 592,147 $ 659,280 Cost of revenue and SG&A expenses 206,350 234,737 461,984 480,556 Depreciation 9,700 8,149 19,570 15,531 Amortization 16,670 22,476 40,300 44,773 Asset impairment and facility consolidation charges 344,772 — 344,772 — Total operating expenses 577,492 265,362 866,626 540,860 Total operating (loss) income (304,746 ) 69,445 (274,479 ) 118,420 Non-operating income (expense) 211 (1,490 ) (1,726 ) (5,685 ) (Loss) income from discontinued operations, before income taxes (304,535 ) 67,955 (276,205 ) 112,735 Provision for income taxes 62,836 (20,568 ) 53,747 (37,292 ) Net (loss) income from discontinued operations $ (241,699 ) $ 47,387 $ (222,458 ) $ 75,443 (1) The six months ended June 30, 2016 include approximately $7.5 million of net loss from discontinued operations related to our operations of our former Sightline business through the date of sale on March 18, 2016. In our Consolidated Statements of Cash Flows, the cash flows from discontinued operations are not separately classified. As such, major categories of discontinued operation cash flows for the six months ended June 30, 2017 and 2016 are presented below (in thousands): Six months ended June 30, 2017 2016 Depreciation $ 19,570 $ 15,531 Amortization 40,300 44,773 Capital expenditures 34,482 23,138 Payments for acquisitions, net of cash acquired $ — $ 53,552 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation: Our accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting, the instructions for Form 10-Q and Article 10 of the U.S. Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all information and footnotes which are normally included in the Form 10-K and annual report to shareholders. In our opinion, the condensed consolidated financial statements reflect all adjustments of a normal recurring nature necessary for a fair presentation of results for the interim periods presented. The condensed consolidated financial statements should be read in conjunction with our (or “TEGNA’s”) audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016. |
Use of estimates | The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Significant estimates include, but are not limited to, evaluation of goodwill and other intangible assets for impairment, fair value measurements, post-retirement benefit plans, income taxes including deferred taxes, and contingencies. |
Consolidation | The condensed consolidated financial statements include the accounts of subsidiaries we control and variable interest entities (VIEs) if we are the primary beneficiary. We eliminate all intercompany balances, transactions, and profits in consolidation. Investments in entities over which we have significant influence, but do not have control, are accounted for under the equity method. Our share of net earnings and losses from these ventures is included in “Equity (loss) income in unconsolidated investments, net” in the Consolidated Statements of Income. In addition, certain reclassifications have been made to prior years’ consolidated Statements of Income to conform to the current year’s presentation. |
Recent accounting standards | Accounting guidance adopted in 2017: In March 2017, the Financial Accounting Standards Board (FASB) issued new guidance that changes the presentation of net periodic pension and other post-retirement benefit costs (post-retirement benefit costs) in the Consolidated Statements of Income. Under this new guidance, the service cost component of the post-retirement benefit expense will continue to be presented as an operating expense while all other components of post-retirement benefit expense will be presented as non-operating expense. Previously, all components of post-retirement benefit expense were presented as operating expense in the Consolidated Statements of Income. The FASB permitted early adoption of this guidance, and we elected to early adopt in the first quarter of 2017. We believe the new guidance provides enhanced financial reporting by limiting operating expense classification to the service cost component of post-retirement benefit expense. Service cost is the component of the expense that relates to services provided by employees in the current period and thus better reflects the current continuing operating costs. Changes to the classification of Consolidated Statements of Income amounts resulting from the new guidance were made on a retrospective basis, wherein each period presented was adjusted to reflect the effects of applying the new guidance. We utilized amounts previously disclosed in our retirement plan footnote to retrospectively apply the guidance. As a result of adopting this guidance, operating expenses in the second quarter and for the first six months of 2017 were lower by $1.9 million and $3.3 million , respectively, while non-operating expenses were higher by the same amounts. In 2016, operating expenses in the second quarter and first six months were reduced by $2.6 million and $4.0 million , respectively, with corresponding increases in non-operating expenses as a result of adopting this new guidance. Net income, earnings per share, and retained earnings were not impacted by the new guidance. In January 2017, the FASB issued guidance that eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of today’s goodwill impairment test) to measure a goodwill impairment charge. Instead, companies will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on Step 1 of the impairment test). The FASB permitted early adoption of this guidance, and we elected to early adopt in the second quarter of 2017 in connection with the calculation of CareerBuilder’s goodwill impairment charge, discussed in Note 12. New accounting pronouncements not yet adopted: In May 2014, the FASB issued new guidance related to revenue recognition. Under the new guidance, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the guidance requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We will adopt the guidance beginning January 1, 2018. The two permitted transition methods are the full retrospective method, in which case the guidance would be applied to each prior reporting period presented and the cumulative effect of applying the guidance would be recognized at the earliest period shown; and the modified retrospective method, in which case the cumulative effect of applying the guidance would be recognized at the date of initial application. We will adopt the guidance using the modified retrospective method. While we continue to evaluate the full impact of the guidance, we do not believe that it will have a material impact on our consolidated financial statements. We are in the process of evaluating the other requirements of the new standard, which may result in additional revenue related disclosures. Based on our evaluation performed to date, we believe that 90% of our revenues will not be materially impacted by the new guidance. Specifically, our television spot advertising contracts, which comprised approximately 60% of 2016 revenue are short-term in nature with transaction price consideration agreed upon in advance. We expect revenue will continue to be recognized when commercials are aired. Further, we expect that revenue earned under retransmission agreements will be recognized under the licensing of intellectual property guidance in the standard, which will not have a material change to our current revenue recognition. Subscription revenue comprised approximately 30% of 2016 revenue. We continue to evaluate the impact to our online digital and other services revenue. In January 2016, the FASB issued new guidance that amended several elements surrounding the recognition and measurement of financial instruments. Most notably for our company, the new guidance requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation) to be measured at fair value with changes in fair value recognized in net income. Under current GAAP, changes in fair value for our available for sale equity investment are recorded as unrealized gains or losses through other comprehensive income until such investment is sold or deemed impaired. The new guidance is effective for public companies beginning in the first quarter of 2019 and will be adopted using a cumulative-effect adjustment. Early adoption is permitted. We do not believe this standard will have a material impact on our financial statements. Previously we had recorded approximately $4.0 million in unrealized losses on our available for sale investment in the Consolidated Statements of Comprehensive Income as of March 31, 2017. During the second quarter of 2017 we determined that the available for sale investment was other than temporarily impaired, and recognized an inception to date loss on the investment in the Consolidated Statement of Income. Losses of this nature will be recorded within the Consolidated Statements of Income in the quarter in which they occur upon adoption of the guidance in the first quarter of 2019. In February 2016, the FASB issued new guidance related to leases which will require lessees to recognize assets and liabilities on the balance sheet for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new guidance will require both types of leases to be recognized on the balance sheet. The new guidance is effective for us beginning in the first quarter of 2019 and will be adopted using a modified retrospective approach. We are currently evaluating the effect it is expected to have on our consolidated financial statements and related disclosures. In June 2016, the FASB issued new guidance related to the measurement of credit losses on financial instruments. The new guidance changes the way credit losses on accounts receivable are estimated. Under current GAAP, credit losses on accounts receivable are recognized once it is probable that such losses will occur. Under the new guidance, we will be required to estimate credit losses based on the expected amount of future collections which may result in earlier recognition of allowance for doubtful accounts. The new guidance is effective for public companies beginning in the first quarter of 2020 and will be adopted using a modified retrospective approach. We are currently evaluating the effect this new guidance will have on our consolidated financial statements and related disclosures. |
Goodwill and Other Intangible20
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table displays goodwill, indefinite-lived intangible assets, and amortizable intangible assets as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 Dec. 31, 2016 Gross Accumulated Amortization Gross Accumulated Amortization (recast) (recast) Goodwill $ 2,579,417 $ — $ 2,579,417 $ — Indefinite-lived intangibles: Television station FCC licenses 1,191,950 — 1,191,950 — Amortizable intangible assets: Retransmission agreements 110,191 (54,817 ) 110,191 (47,280 ) Network affiliation agreements 43,485 (16,908 ) 43,485 (14,445 ) Other 15,763 (5,602 ) 15,763 (4,825 ) Total indefinite-live and amortizable intangible assets $ 1,361,389 $ (77,327 ) $ 1,361,389 $ (66,550 ) |
Investments and Other Assets (T
Investments and Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Schedule of Other Assets | Our investments and other assets consisted of the following as of June 30, 2017, and December 31, 2016 (in thousands): June 30, 2017 Dec. 31, 2016 (recast) Cash value life insurance $ 63,701 $ 64,134 Deferred compensation investments 28,667 23,715 Equity method investments 15,831 18,016 Available for sale investment — 16,744 Deferred debt issuance cost 7,968 9,856 Other long term assets 41,498 48,151 Total $ 157,665 $ 180,616 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary Long-term debt | Our long-term debt is summarized below (in thousands): June 30, 2017 Dec. 31, 2016 Unsecured floating rate term loan due quarterly through August 2018 $ 36,300 $ 52,100 VIE unsecured floating rate term loans due quarterly through December 2018 969 1,292 Unsecured floating rate term loan due quarterly through June 2020 120,000 140,000 Unsecured floating rate term loan due quarterly through September 2020 255,000 285,000 Borrowings under revolving credit agreement expiring June 2020 — 635,000 Unsecured notes bearing fixed rate interest at 5.125% due October 2019 600,000 600,000 Unsecured notes bearing fixed rate interest at 5.125% due July 2020 600,000 600,000 Unsecured notes bearing fixed rate interest at 4.875% due September 2021 350,000 350,000 Unsecured notes bearing fixed rate interest at 6.375% due October 2023 650,000 650,000 Unsecured notes bearing fixed rate interest at 5.50% due September 2024 325,000 325,000 Unsecured notes bearing fixed rate interest at 7.75% due June 2027 200,000 200,000 Unsecured notes bearing fixed rate interest at 7.25% due September 2027 240,000 240,000 Total principal long-term debt 3,377,269 4,078,392 Debt issuance costs (24,873 ) (27,615 ) Other (fair market value adjustments and discounts) (5,764 ) (7,382 ) Total long-term debt 3,346,632 4,043,395 Less current portion of long-term debt maturities of VIE loans 646 646 Long-term debt, net of current portion $ 3,345,986 $ 4,042,749 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefit costs | Our pension costs, which include costs for the qualified TRP plan and the nonqualified SERP plan, are presented in the following table (in thousands): Quarter ended June 30, Six months ended June 30, 2017 2016 2017 2016 Service cost-benefits earned during the period $ 311 $ 158 $ 436 $ 408 Interest cost on benefit obligation 6,056 6,837 11,981 13,187 Expected return on plan assets (6,511 ) (6,632 ) (13,161 ) (13,382 ) Amortization of prior service cost 167 190 317 340 Amortization of actuarial loss 2,187 2,194 4,162 3,894 Expense for company-sponsored retirement plans $ 2,210 $ 2,747 $ 3,735 $ 4,447 |
Supplemental Equity Informati24
Supplemental Equity Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Equity | The following table summarizes equity account activity for the six months ended June 30, 2017 and 2016 (in thousands): TEGNA Inc. Shareholders’ Equity Noncontrolling Interests Total Equity Balance at Dec. 31, 2016 $ 2,271,418 $ 281,587 $ 2,553,005 Comprehensive income: Net loss (72,638 ) (55,892 ) (128,530 ) Redeemable noncontrolling interests (income not available to shareholders) — (2,832 ) (2,832 ) Other comprehensive income 9,438 4,409 13,847 Total comprehensive loss (63,200 ) (54,315 ) (117,515 ) Dividends declared (45,055 ) — (45,055 ) Stock-based compensation 10,160 — 10,160 Treasury shares acquired (8,453 ) — (8,453 ) Spin-off of businesses (1,510,342 ) — (1,510,342 ) Other activity, including shares withheld for employee taxes (5,443 ) (2,179 ) (7,622 ) Balance at June 30, 2017 $ 649,085 $ 225,093 $ 874,178 Balance at Dec. 31, 2015 $ 2,191,971 $ 264,773 $ 2,456,744 Comprehensive income: Net income 184,895 25,426 210,321 Redeemable noncontrolling interests (income not available to shareholders) — (2,275 ) (2,275 ) Other comprehensive income (loss) (4,786 ) (2,808 ) (7,594 ) Total comprehensive income 180,109 20,343 200,452 Dividends declared (60,747 ) — (60,747 ) Stock-based compensation 9,055 — 9,055 Treasury shares acquired (150,917 ) — (150,917 ) Other activity, including shares withheld for employee taxes and tax windfall benefits (18,479 ) (1,922 ) (20,401 ) Balance at June 30, 2016 $ 2,150,992 $ 283,194 $ 2,434,186 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the components of, and the changes in, Accumulated Other Comprehensive Loss (AOCL), net of tax and noncontrolling interests (in thousands): Retirement Plans Foreign Currency Translation (1) Other Total Quarters Ended: Balance at Mar. 31, 2017 $ (126,063 ) $ (27,363 ) $ (7,965 ) $ (161,391 ) Other comprehensive loss before reclassifications — 3,755 586 4,341 Amounts reclassified from AOCL 1,431 — 9,743 11,174 Other comprehensive income 1,431 3,755 10,329 15,515 Balance at June 30, 2017 $ (124,632 ) $ (23,608 ) $ 2,364 $ (145,876 ) Balance at Mar. 31, 2016 $ (115,334 ) $ (19,494 ) $ 3,691 $ (131,137 ) Other comprehensive income (loss) before reclassifications — (3,788 ) (2,292 ) (6,080 ) Amounts reclassified from AOCL 1,480 — — 1,480 Other comprehensive income (loss) 1,480 (3,788 ) (2,292 ) (4,600 ) Balance at June 30, 2016 $ (113,854 ) $ (23,282 ) $ 1,399 $ (135,737 ) Retirement Plans Foreign Currency Translation (1) Other Total Six Months Ended: Balance at Dec. 31, 2016 $ (127,341 ) $ (28,560 ) $ (5,672 ) $ (161,573 ) Other comprehensive loss before reclassifications — 4,952 (1,707 ) 3,245 Amounts reclassified from AOCL 2,709 — 9,743 12,452 Other comprehensive income (loss) 2,709 4,952 8,036 15,697 Balance at June 30, 2017 $ (124,632 ) $ (23,608 ) $ 2,364 $ (145,876 ) Balance at Dec. 31, 2015 $ (116,496 ) $ (20,129 ) $ 5,674 $ (130,951 ) Other comprehensive income (loss) before reclassifications — (3,153 ) (4,275 ) (7,428 ) Amounts reclassified from AOCL 2,642 — — 2,642 Other comprehensive income (loss) 2,642 (3,153 ) (4,275 ) (4,786 ) Balance at June 30, 2016 $ (113,854 ) $ (23,282 ) $ 1,399 $ (135,737 ) (1) Our entire foreign currency translation adjustment is related to our CareerBuilder business which is held for sale as of June 30, 2017 (see Note 12). |
Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified out of AOCL are summarized below (in thousands): Quarter ended Six months ended 2017 2016 2017 2016 Amortization of prior service cost $ 32 $ 80 $ 32 $ 130 Amortization of actuarial loss 2,295 2,342 4,370 4,192 Reclassification of available for sale investment 9,743 — 9,743 — Total reclassifications, before tax 12,070 2,422 14,145 4,322 Income tax effect (896 ) (942 ) (1,693 ) (1,680 ) Total reclassifications, net of tax $ 11,174 $ 1,480 $ 12,452 $ 2,642 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Our earnings per share (basic and diluted) are presented below (in thousands of dollars, except per share amounts): Quarter ended June 30, Six months ended June 30, 2017 2016 2017 2016 Net income from continuing operations $ 49,270 $ 66,998 $ 93,928 $ 134,878 (Loss) income from discontinued operations, net of tax (241,699 ) 47,387 (222,458 ) 75,443 Net loss (income) attributable to noncontrolling interests from discontinued operations 62,077 (14,934 ) 55,892 (25,426 ) Net (loss) income attributable to TEGNA Inc. $ (130,352 ) $ 99,451 $ (72,638 ) $ 184,895 Weighted average number of common shares outstanding - basic 215,501 216,518 215,404 217,902 Effect of dilutive securities: Restricted stock units 818 1,684 905 1,678 Performance share units 761 1,078 651 1,186 Stock options 732 924 731 963 Weighted average number of common shares outstanding - diluted 217,812 220,204 217,691 221,729 Earnings from continuing operations per share - basic $ 0.23 $ 0.31 $ 0.44 $ 0.62 Earnings (loss) from discontinued operations per share - basic (0.83 ) 0.15 (0.77 ) 0.23 Net (loss) income per share - basic $ (0.60 ) $ 0.46 $ (0.33 ) $ 0.85 Earnings from continuing operations per share - diluted $ 0.23 $ 0.30 $ 0.43 $ 0.61 Earnings (loss) from discontinued operations per share - diluted (0.83 ) 0.15 (0.77 ) 0.23 Net (loss) income per share - diluted $ (0.60 ) $ 0.45 $ (0.34 ) $ 0.84 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured at Fair Value | The following table summarizes our assets and liabilities measured at fair value in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2017, and December 31, 2016 (in thousands): Fair Value Measurements as of June 30, 2017 Level 1 Level 2 Level 3 Total Available for sale investment 15,037 — — 15,037 Total $ 15,037 $ — $ — $ 15,037 Deferred compensation investments valued using net asset value as a practical expedient: Interest in registered investment companies $ 15,039 Fixed income fund 13,628 Total investments at fair value $ 43,704 Fair Value Measurements as of Dec. 31, 2016 (recast) Level 1 Level 2 Level 3 Total Available for sale investment 16,744 — — 16,744 Total $ 16,744 $ — $ — $ 16,744 Deferred compensation investments valued using net asset value as a practical expedient: Interest in registered investment companies $ 10,140 Fixed income fund 13,575 Total investments at fair value $ 40,459 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | Segment operating results are summarized as follows (in thousands): Quarter ended June 30, Six months ended June 30, 2017 2016 2017 2016 (recast) (recast) Revenues: Media $ 489,369 $ 474,268 $ 948,439 $ 932,181 Digital — 2,710 — 5,435 Total $ 489,369 $ 476,978 $ 948,439 $ 937,616 Operating Income (net of depreciation, amortization, asset impairment and facility consolidation charges): Media (a) $ 164,576 $ 179,238 $ 303,291 $ 348,397 Digital — (2,819 ) — (5,468 ) Corporate (a) (14,496 ) (16,683 ) (30,100 ) (30,891 ) Total $ 150,080 $ 159,736 $ 273,191 $ 312,038 Depreciation, amortization, asset impairment and facility consolidation charges: Media $ 19,809 $ 21,290 $ 40,326 $ 41,152 Digital — 359 — 732 Corporate 247 2,332 519 3,052 Total $ 20,056 $ 23,981 $ 40,845 $ 44,936 (a) In the first quarter of 2017, we adopted new accounting guidance that changed the classification of certain components of net periodic pension and other post-retirement benefit expense (post-retirement benefit expense). The service cost component of the post-retirement benefit expense will continue to be presented as an operating expense while all other components of post-retirement benefit expense will be presented as non-operating expense. The prior year period was adjusted to reflect the effects of applying the new guidance. This resulted in an increase to operating income in second quarter of 2017 and 2016 of $1.9 million and $2.6 million and for the six months ended June 30, 2017 and 2016 of $3.3 million and $4.0 million, respectively. Net income, earnings per share, and retained earnings were not impacted by the new standard. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table presents the financial results of discontinued operations (in thousands): Quarter ended June 30, Six months ended June 30, 2017 2016 2017 2016 (1) Operating revenues $ 272,746 $ 334,807 $ 592,147 $ 659,280 Cost of revenue and SG&A expenses 206,350 234,737 461,984 480,556 Depreciation 9,700 8,149 19,570 15,531 Amortization 16,670 22,476 40,300 44,773 Asset impairment and facility consolidation charges 344,772 — 344,772 — Total operating expenses 577,492 265,362 866,626 540,860 Total operating (loss) income (304,746 ) 69,445 (274,479 ) 118,420 Non-operating income (expense) 211 (1,490 ) (1,726 ) (5,685 ) (Loss) income from discontinued operations, before income taxes (304,535 ) 67,955 (276,205 ) 112,735 Provision for income taxes 62,836 (20,568 ) 53,747 (37,292 ) Net (loss) income from discontinued operations $ (241,699 ) $ 47,387 $ (222,458 ) $ 75,443 (1) The six months ended June 30, 2016 include approximately $7.5 million of net loss from discontinued operations related to our operations of our former Sightline business through the date of sale on March 18, 2016. As such, major categories of discontinued operation cash flows for the six months ended June 30, 2017 and 2016 are presented below (in thousands): Six months ended June 30, 2017 2016 Depreciation $ 19,570 $ 15,531 Amortization 40,300 44,773 Capital expenditures 34,482 23,138 Payments for acquisitions, net of cash acquired $ — $ 53,552 The carrying value of the assets and liabilities of our former Digital Segment’s discontinued operations as of June 30, 2017 and December 31, 2016 were as follows (in thousands): June 30, Dec. 31, 2017 2016 ASSETS Cash and cash equivalents $ 78,762 $ 61,042 Accounts receivable, net 95,500 214,170 Property and equipment, net 57,440 74,695 Goodwill 358,645 1,488,112 Other Intangibles, net 104,315 1,718,592 Other assets 55,063 71,193 Total assets $ 749,725 $ 3,627,804 LIABILITIES Accounts payable $ 99,679 $ 166,853 Deferred revenue 103,730 110,071 Deferred tax liability 2,731 280,264 Other liabilities 13,203 66,969 Total liabilities $ 219,343 $ 624,157 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | ||
Unrealized losses on available for sales investments recognized in comprehensive income | $ 4 | |
Revenue | Media | ||
Concentration Risk [Line Items] | ||
Percentage of revenue not expected to have material change | 90.00% | |
Television Advertising Revenue | Revenue | Media | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 60.00% | |
Retransmission Revenue | Revenue | Media | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 30.00% |
Basis of Presentation - Early A
Basis of Presentation - Early Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Decrease in operating expenses | $ (339,289) | $ (317,242) | $ (675,248) | $ (625,578) |
Total non-operating (expense) income | (76,897) | (65,701) | (135,855) | (123,563) |
Effect of Accounting Change | Accounting Standards Update 2017-06 | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Decrease in operating expenses | 1,900 | 2,600 | 3,300 | 4,000 |
Total non-operating (expense) income | $ (1,900) | $ (2,600) | $ (3,300) | $ (4,000) |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets - Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Goodwill | $ 2,579,417 | $ 2,579,417 |
Goodwill, Accumulated Amortization | 0 | 0 |
Total indefinite-live and amortizable intangible assets | 1,361,389 | 1,361,389 |
Total indefinite-live and amortizable intangible assets, accumulated amortization | (77,327) | (66,550) |
Retransmission agreements | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets | 110,191 | 110,191 |
Amortizable intangible assets, accumulated amortization | (54,817) | (47,280) |
Network affiliation agreements | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets | 43,485 | 43,485 |
Amortizable intangible assets, accumulated amortization | (16,908) | (14,445) |
Other | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Amortizable intangible assets | 15,763 | 15,763 |
Amortizable intangible assets, accumulated amortization | (5,602) | (4,825) |
Television station FCC licenses | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Indefinite-lived intangibles | 1,191,950 | 1,191,950 |
Total indefinite-live and amortizable intangible assets, accumulated amortization | $ 0 | $ 0 |
Investments and Other Assets -
Investments and Other Assets - Components of Investments and Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investments, All Other Investments [Abstract] | ||
Cash value life insurance | $ 63,701 | $ 64,134 |
Deferred compensation investments | 28,667 | 23,715 |
Equity method investments | 15,831 | 18,016 |
Available for sale investment | 0 | 16,744 |
Deferred debt issuance cost | 7,968 | 9,856 |
Other long term assets | 41,498 | 48,151 |
Total | $ 157,665 | $ 180,616 |
Investments and Other Assets 33
Investments and Other Assets - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Investments, All Other Investments [Abstract] | ||
Impairment of equity method investments | $ 5.8 | |
Other long term assets | ||
Schedule of Cost-method Investments [Line Items] | ||
Cost method investments | $ 15.1 | $ 14.8 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Income Taxes (Textual) [Abstract] | ||
Unrecognized tax benefits that, if recognized, would impact effective tax rate | $ 9.9 | $ 10.8 |
Accrued interest and penalties payable related to unrecognized tax benefits | 1.1 | $ 1.5 |
Estimated decrease in gross unrecognized tax positions within the next 12 months, maximum | $ 0.7 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total principal long-term debt | $ 3,377,269 | $ 4,078,392 |
Debt issuance costs | (24,873) | (27,615) |
Other (fair market value adjustments and discounts) | (5,764) | (7,382) |
Total long-term debt | 3,346,632 | 4,043,395 |
Less current portion of long-term debt maturities of VIE loans | 646 | 646 |
Long-term debt, net of current portion | 3,345,986 | 4,042,749 |
Unsecured floating rate term loan due quarterly through August 2018 | ||
Debt Instrument [Line Items] | ||
Principal long-term debt | 36,300 | 52,100 |
VIE unsecured floating rate term loans due quarterly through December 2018 | ||
Debt Instrument [Line Items] | ||
Principal long-term debt | 969 | 1,292 |
Unsecured floating rate term loan due quarterly through June 2020 | ||
Debt Instrument [Line Items] | ||
Principal long-term debt | 120,000 | 140,000 |
Unsecured floating rate term loan due quarterly through September 2020 | ||
Debt Instrument [Line Items] | ||
Principal long-term debt | 255,000 | 285,000 |
Borrowings under revolving credit agreement expiring June 2020 | ||
Debt Instrument [Line Items] | ||
Principal long-term debt | 0 | 635,000 |
Unsecured notes bearing fixed rate interest at 5.125% due October 2019 | ||
Debt Instrument [Line Items] | ||
Principal long-term debt | $ 600,000 | 600,000 |
Stated interest rate (as a percent) | 5.125% | |
Unsecured notes bearing fixed rate interest at 5.125% due July 2020 | ||
Debt Instrument [Line Items] | ||
Principal long-term debt | $ 600,000 | 600,000 |
Stated interest rate (as a percent) | 5.125% | |
Unsecured notes bearing fixed rate interest at 4.875% due September 2021 | ||
Debt Instrument [Line Items] | ||
Principal long-term debt | $ 350,000 | 350,000 |
Stated interest rate (as a percent) | 4.875% | |
Unsecured notes bearing fixed rate interest at 6.375% due October 2023 | ||
Debt Instrument [Line Items] | ||
Principal long-term debt | $ 650,000 | 650,000 |
Stated interest rate (as a percent) | 6.375% | |
Unsecured notes bearing fixed rate interest at 5.50% due September 2024 | ||
Debt Instrument [Line Items] | ||
Principal long-term debt | $ 325,000 | 325,000 |
Stated interest rate (as a percent) | 5.50% | |
Unsecured notes bearing fixed rate interest at 7.75% due June 2027 | ||
Debt Instrument [Line Items] | ||
Principal long-term debt | $ 200,000 | 200,000 |
Stated interest rate (as a percent) | 7.75% | |
Unsecured notes bearing fixed rate interest at 7.25% due September 2027 | ||
Debt Instrument [Line Items] | ||
Principal long-term debt | $ 240,000 | $ 240,000 |
Stated interest rate (as a percent) | 7.25% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) $ in Thousands | Aug. 01, 2017 | May 31, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Debt Instrument [Line Items] | ||||
Tax-free distribution | $ 20,133 | $ 0 | ||
Proceeds remaining, reserved for future repayments of debt | 40,000 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Repayments of revolving credit agreement | 609,900 | |||
Remaining borrowing capacity | 1,500,000 | |||
Revolving Credit Facility | Cars.com | ||||
Debt Instrument [Line Items] | ||||
Proceeds from borrowings on revolving credit facility | 675,000 | |||
Tax-free distribution | $ 650,000 | $ 650,000 | ||
Covenant through June 30, 2018 | Subsequent Event | Amended and Restated Competitive Advance and Revolving Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Covenant requirement, maximum total leverage ratio | 5 | |||
Covenant through June 30, 2019 | Subsequent Event | Amended and Restated Competitive Advance and Revolving Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Covenant requirement, maximum total leverage ratio | 4.75 | |||
Covenant through June 29, 2020 | Subsequent Event | Amended and Restated Competitive Advance and Revolving Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Covenant requirement, maximum total leverage ratio | 4.5 |
Retirement Plans (Details)
Retirement Plans (Details) - Retirement Plans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Company's pension costs | ||||
Service cost-benefits earned during the period | $ 311 | $ 158 | $ 436 | $ 408 |
Interest cost on benefit obligation | 6,056 | 6,837 | 11,981 | 13,187 |
Expected return on plan assets | (6,511) | (6,632) | (13,161) | (13,382) |
Amortization of prior service cost | 167 | 190 | 317 | 340 |
Amortization of actuarial loss | 2,187 | 2,194 | 4,162 | 3,894 |
Expense for company-sponsored retirement plans | $ 2,210 | $ 2,747 | $ 3,735 | $ 4,447 |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Apr. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net pension plan obligation | $ 211.5 | ||
Expected contributions to TRP in current fiscal year | 20.6 | ||
Contributions to plan | $ 1.7 | ||
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions to plan | 3.8 | $ 3.3 | |
Accrued Liabilities | Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net pension plan obligation | $ 31 |
Supplemental Equity Informati39
Supplemental Equity Information - Equity Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | $ 2,553,005 | $ 2,456,744 | ||
Comprehensive income: | ||||
Net (loss) income | $ (192,429) | $ 114,385 | (128,530) | 210,321 |
Redeemable noncontrolling interests (earnings not available to shareholders) | (1,017) | (1,350) | (2,832) | (2,275) |
Other comprehensive income | 12,599 | (7,974) | 13,847 | (7,594) |
Comprehensive (loss) income | (180,847) | 105,061 | (117,515) | 200,452 |
Dividends declared | (45,055) | (60,747) | ||
Stock-based compensation | 10,160 | 9,055 | ||
Treasury shares acquired | (8,453) | (150,917) | ||
Spin-off of businesses | (1,510,342) | |||
Other activity, including shares withheld for employee taxes and tax windfall benefits | (7,622) | (20,401) | ||
Ending Balance | 874,178 | 2,434,186 | 874,178 | 2,434,186 |
TEGNA Inc. Shareholders' Equity | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 2,271,418 | 2,191,971 | ||
Comprehensive income: | ||||
Net (loss) income | (72,638) | 184,895 | ||
Redeemable noncontrolling interests (earnings not available to shareholders) | 0 | 0 | ||
Other comprehensive income | 9,438 | (4,786) | ||
Comprehensive (loss) income | (63,200) | 180,109 | ||
Dividends declared | (45,055) | (60,747) | ||
Stock-based compensation | 10,160 | 9,055 | ||
Treasury shares acquired | (8,453) | (150,917) | ||
Spin-off of businesses | (1,510,342) | |||
Other activity, including shares withheld for employee taxes and tax windfall benefits | (5,443) | (18,479) | ||
Ending Balance | 649,085 | 2,150,992 | 649,085 | 2,150,992 |
Noncontrolling Interests | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 281,587 | 264,773 | ||
Comprehensive income: | ||||
Net (loss) income | (55,892) | 25,426 | ||
Redeemable noncontrolling interests (earnings not available to shareholders) | (2,832) | (2,275) | ||
Other comprehensive income | 4,409 | (2,808) | ||
Comprehensive (loss) income | (54,315) | 20,343 | ||
Dividends declared | 0 | 0 | ||
Stock-based compensation | 0 | 0 | ||
Treasury shares acquired | 0 | 0 | ||
Spin-off of businesses | 0 | |||
Other activity, including shares withheld for employee taxes and tax windfall benefits | (2,179) | (1,922) | ||
Ending Balance | $ 225,093 | $ 283,194 | $ 225,093 | $ 283,194 |
Supplemental Equity Informati40
Supplemental Equity Information - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | $ 2,553,005 | $ 2,456,744 | ||
Amounts reclassified from AOCL | $ 11,174 | $ 1,480 | 12,452 | 2,642 |
Other comprehensive income (loss), net of tax | 12,599 | (7,974) | 13,847 | (7,594) |
Ending Balance | 874,178 | 2,434,186 | 874,178 | 2,434,186 |
Retirement Plans | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (126,063) | (115,334) | (127,341) | (116,496) |
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCL | 1,431 | 1,480 | 2,709 | 2,642 |
Other comprehensive income (loss), net of tax | 1,431 | 1,480 | 2,709 | 2,642 |
Ending Balance | (124,632) | (113,854) | (124,632) | (113,854) |
Foreign Currency Translation | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (27,363) | (19,494) | (28,560) | (20,129) |
Other comprehensive loss before reclassifications | 3,755 | (3,788) | 4,952 | (3,153) |
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 3,755 | (3,788) | 4,952 | (3,153) |
Ending Balance | (23,608) | (23,282) | (23,608) | (23,282) |
Other | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (7,965) | 3,691 | (5,672) | 5,674 |
Other comprehensive loss before reclassifications | 586 | (2,292) | (1,707) | (4,275) |
Amounts reclassified from AOCL | 9,743 | 0 | 9,743 | 0 |
Other comprehensive income (loss), net of tax | 10,329 | (2,292) | 8,036 | (4,275) |
Ending Balance | 2,364 | 1,399 | 2,364 | 1,399 |
Total | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (161,391) | (131,137) | (161,573) | (130,951) |
Other comprehensive loss before reclassifications | 4,341 | (6,080) | 3,245 | (7,428) |
Amounts reclassified from AOCL | 11,174 | 1,480 | 12,452 | 2,642 |
Other comprehensive income (loss), net of tax | 15,515 | (4,600) | 15,697 | (4,786) |
Ending Balance | $ (145,876) | $ (135,737) | $ (145,876) | $ (135,737) |
Supplemental Equity Informati41
Supplemental Equity Information - Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications, before tax | $ 12,070 | $ 2,422 | $ 14,145 | $ 4,322 |
Income tax effect | (896) | (942) | (1,693) | (1,680) |
Total reclassifications, net of tax | 11,174 | 1,480 | 12,452 | 2,642 |
Amortization of prior service cost | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications, before tax | 32 | 80 | 32 | 130 |
Amortization of actuarial loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications, before tax | 2,295 | 2,342 | 4,370 | 4,192 |
Reclassification of available for sale investment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications, before tax | $ 9,743 | $ 0 | $ 9,743 | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income from continuing operations | $ 49,270 | $ 66,998 | $ 93,928 | $ 134,878 |
(Loss) income from discontinued operations, net of tax | (241,699) | 47,387 | (222,458) | 75,443 |
Net loss (income) attributable to noncontrolling interests from discontinued operations | 62,077 | (14,934) | 55,892 | (25,426) |
Net (loss) income attributable to TEGNA Inc. | $ (130,352) | $ 99,451 | $ (72,638) | $ 184,895 |
Weighted average number of common shares outstanding - basic | 215,501 | 216,518 | 215,404 | 217,902 |
Effect of dilutive securities: | ||||
Weighted average number of common shares outstanding - diluted | 217,812 | 220,204 | 217,691 | 221,729 |
Earnings from continuing operations per share - basic (in dollars per share) | $ 0.23 | $ 0.31 | $ 0.44 | $ 0.62 |
(Loss) earnings from discontinued operations per share - basic (in dollars per share) | (0.83) | 0.15 | (0.77) | 0.23 |
Net (loss) income per share – basic (In dollars per share) | (0.60) | 0.46 | (0.33) | 0.85 |
Earnings from continuing operations per share - diluted (in dollars per share) | 0.23 | 0.30 | 0.43 | 0.61 |
(Loss) earnings from discontinued operations per share - diluted (in dollars per share) | (0.83) | 0.15 | (0.77) | 0.23 |
Net (loss) income per share – diluted (In dollars per share) | $ (0.60) | $ 0.45 | $ (0.34) | $ 0.84 |
Restricted stock units | ||||
Effect of dilutive securities: | ||||
Dilutive securities (in shares) | 818 | 1,684 | 905 | 1,678 |
Performance share units | ||||
Effect of dilutive securities: | ||||
Dilutive securities (in shares) | 761 | 1,078 | 651 | 1,186 |
Stock options | ||||
Effect of dilutive securities: | ||||
Dilutive securities (in shares) | 732 | 924 | 731 | 963 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive stock options outstanding excluded from diluted earnings per share (in shares) | 229,000 | 29,000 | 165,000 | 29,000 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets and liabilities measured at fair value | ||
Total | $ 15,037 | $ 16,744 |
Total investments at fair value | 43,704 | 40,459 |
Level 1 | ||
Assets and liabilities measured at fair value | ||
Total | 15,037 | 16,744 |
Level 2 | ||
Assets and liabilities measured at fair value | ||
Total | 0 | 0 |
Level 3 | ||
Assets and liabilities measured at fair value | ||
Total | 0 | 0 |
Interest in registered investment companies | ||
Assets and liabilities measured at fair value | ||
Deferred compensation investments valued using net asset value as a practical expedient: | 15,039 | 10,140 |
Fixed income fund | ||
Assets and liabilities measured at fair value | ||
Deferred compensation investments valued using net asset value as a practical expedient: | 13,628 | 13,575 |
Available for sale investment | ||
Assets and liabilities measured at fair value | ||
Total | 15,037 | 16,744 |
Available for sale investment | Level 1 | ||
Assets and liabilities measured at fair value | ||
Total | 15,037 | 16,744 |
Available for sale investment | Level 2 | ||
Assets and liabilities measured at fair value | ||
Total | 0 | 0 |
Available for sale investment | Level 3 | ||
Assets and liabilities measured at fair value | ||
Total | $ 0 | $ 0 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of goodwill | $ 333 | |
Impairment of equity method investments | 5.8 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of total long-term debt | 3,500 | $ 4,190 |
CareerBuilder | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset impairment and facility consolidation charges | 344.8 | |
Impairment of goodwill | $ 333 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Operating Revenues | $ 489,369 | $ 476,978 | $ 948,439 | $ 937,616 |
Operating Income (net of depreciation, amortization, asset impairment and facility consolidation charges) | 150,080 | 159,736 | 273,191 | 312,038 |
Depreciation, amortization, asset impairment and facility consolidation charges | 20,056 | 23,981 | 40,845 | 44,936 |
Operating Segments | Media | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenues | 489,369 | 474,268 | 948,439 | 932,181 |
Operating Income (net of depreciation, amortization, asset impairment and facility consolidation charges) | 164,576 | 179,238 | 303,291 | 348,397 |
Depreciation, amortization, asset impairment and facility consolidation charges | 19,809 | 21,290 | 40,326 | 41,152 |
Operating Segments | Digital | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenues | 0 | 2,710 | 0 | 5,435 |
Operating Income (net of depreciation, amortization, asset impairment and facility consolidation charges) | 0 | (2,819) | 0 | (5,468) |
Depreciation, amortization, asset impairment and facility consolidation charges | 0 | 359 | 0 | 732 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (net of depreciation, amortization, asset impairment and facility consolidation charges) | (14,496) | (16,683) | (30,100) | (30,891) |
Depreciation, amortization, asset impairment and facility consolidation charges | $ 247 | $ 2,332 | $ 519 | $ 3,052 |
Business Segment Information -
Business Segment Information - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)marketstation | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)marketstation | Jun. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||
Operating income | $ 150,080 | $ 159,736 | $ 273,191 | $ 312,038 |
Accounting Standards Update 2017-06 | Effect of Accounting Change | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ 1,900 | 2,600 | $ 3,300 | 4,000 |
Media | ||||
Segment Reporting Information [Line Items] | ||||
Number of television stations | station | 46 | 46 | ||
Number of markets In which entity operates | market | 38 | 38 | ||
Media | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ 164,576 | $ 179,238 | $ 303,291 | $ 348,397 |
Other Matters - Narrative (Deta
Other Matters - Narrative (Details) - Voluntary Retirement Program (VRP) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Accrued separation liability | $ 0.4 | |
Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 16 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Thousands | Jul. 31, 2017USD ($) | May 31, 2017USD ($)marketcompany | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group Including Discontinued Operation, Shares of Spin-off Received by Shareholders, Conversion Ratio | 0.3333 | |||
Number of publicly traded companies after disposal | company | 2 | |||
Tax-free distribution | $ 20,133 | $ 0 | ||
Proceeds remaining, reserved for future repayments of debt | 40,000 | |||
Impairment of goodwill | 333,000 | |||
Cars.com | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Minimum notice period of termination of transition services | 45 days | |||
CareerBuilder | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset impairment and facility consolidation charges | 344,800 | |||
Asset impairment and facility consolidation charges attributable to parent | 273,500 | |||
Impairment of goodwill | 333,000 | |||
Estimated selling costs | 11,800 | |||
Tegna [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of markets In which entity operates | market | 25 | |||
Maximum | Cars.com | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Transition services agreement, period | 24 months | |||
Minimum | Cars.com | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Transition services agreement, period | 60 days | |||
Subsequent Event | CareerBuilder | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of discontinued operation | $ 250,000 | |||
Ownership interest before sale (as a percent) | 53.00% | |||
Equity method investment retained after disposal, ownership interest (as a percent) | 17.00% | |||
Equity method investment retained after disposal, fully diluted ownership interest (as a percent) | 12.00% | |||
Revolving Credit Facility | Cars.com | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Tax-free distribution | $ 650,000 | $ 650,000 |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 78,762 | $ 61,041 | $ 87,137 | $ 103,104 |
Digital | ||||
ASSETS | ||||
Cash and cash equivalents | 78,762 | 61,042 | ||
Accounts receivable, net | 95,500 | 214,170 | ||
Property and equipment, net | 57,440 | 74,695 | ||
Goodwill | 358,645 | 1,488,112 | ||
Other Intangibles, net | 104,315 | 1,718,592 | ||
Other assets | 55,063 | 71,193 | ||
Total assets | 749,725 | 3,627,804 | ||
LIABILITIES | ||||
Accounts payable | 99,679 | 166,853 | ||
Deferred revenue | 103,730 | 110,071 | ||
Deferred tax liability | 2,731 | 280,264 | ||
Other liabilities | 13,203 | 66,969 | ||
Total liabilities | $ 219,343 | $ 624,157 |
Discontinued Operations - Finan
Discontinued Operations - Financial Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net (loss) income from discontinued operations | $ (241,699) | $ 47,387 | $ (222,458) | $ 75,443 |
Sightline Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Loss) income from discontinued operations, before income taxes | (7,500) | |||
Digital | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Operating revenues | 272,746 | 334,807 | 592,147 | 659,280 |
Cost of revenue and SG&A expenses | 206,350 | 234,737 | 461,984 | 480,556 |
Depreciation | 9,700 | 8,149 | 19,570 | 15,531 |
Amortization | 16,670 | 22,476 | 40,300 | 44,773 |
Asset impairment and facility consolidation charges | 344,772 | 0 | 344,772 | 0 |
Total operating expenses | 577,492 | 265,362 | 866,626 | 540,860 |
Total operating (loss) income | (304,746) | 69,445 | (274,479) | 118,420 |
Non-operating income (expense) | 211 | (1,490) | (1,726) | (5,685) |
(Loss) income from discontinued operations, before income taxes | (304,535) | 67,955 | (276,205) | 112,735 |
Provision for income taxes | 62,836 | (20,568) | 53,747 | (37,292) |
Net (loss) income from discontinued operations | $ (241,699) | $ 47,387 | $ (222,458) | $ 75,443 |
Discontinued Operations - Cash
Discontinued Operations - Cash Flows (Details) - Digital - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Depreciation | $ 9,700 | $ 8,149 | $ 19,570 | $ 15,531 |
Amortization | $ 16,670 | $ 22,476 | 40,300 | 44,773 |
Capital expenditures | 34,482 | 23,138 | ||
Payments for acquisitions, net of cash acquired | $ 0 | $ 53,552 |