Document
false--12-31Q2202000000398994.504.755.505.005.25372300088080000.070.140.070.14118000000008000000003244186323244186320.046250.048750.050.051250.0550.063750.07250.0775011106955082105661402Cost of revenues exclude charges for depreciation and amortization expense, which are shown separately above. 0000039899 2020-01-01 2020-06-30 0000039899 2020-07-31 0000039899 2020-06-30 0000039899 2019-12-31 0000039899 2019-01-01 2019-06-30 0000039899 2020-04-01 2020-06-30 0000039899 2019-04-01 2019-06-30 0000039899 2018-12-31 0000039899 2019-06-30 0000039899 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0000039899 us-gaap:CommonStockMember 2019-06-30 0000039899 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0000039899 us-gaap:TreasuryStockMember 2020-01-01 2020-06-30 0000039899 us-gaap:CommonStockMember 2020-03-31 0000039899 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000039899 us-gaap:TreasuryStockMember 2020-03-31 0000039899 us-gaap:TreasuryStockMember 2019-01-01 2019-06-30 0000039899 us-gaap:RetainedEarningsMember 2019-03-31 0000039899 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000039899 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0000039899 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0000039899 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000039899 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0000039899 us-gaap:TreasuryStockMember 2020-04-01 2020-06-30 0000039899 2020-03-31 0000039899 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000039899 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000039899 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000039899 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000039899 us-gaap:RetainedEarningsMember 2019-06-30 0000039899 us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0000039899 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000039899 us-gaap:CommonStockMember 2020-06-30 0000039899 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-06-30 0000039899 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0000039899 us-gaap:RetainedEarningsMember 2020-03-31 0000039899 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000039899 us-gaap:CommonStockMember 2018-12-31 0000039899 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0000039899 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0000039899 us-gaap:RetainedEarningsMember 2020-06-30 0000039899 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000039899 us-gaap:RetainedEarningsMember 2018-12-31 0000039899 us-gaap:CommonStockMember 2019-12-31 0000039899 2019-03-31 0000039899 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000039899 us-gaap:TreasuryStockMember 2019-03-31 0000039899 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000039899 us-gaap:TreasuryStockMember 2020-06-30 0000039899 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000039899 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000039899 us-gaap:RetainedEarningsMember 2019-12-31 0000039899 us-gaap:CommonStockMember 2019-03-31 0000039899 us-gaap:TreasuryStockMember 2019-06-30 0000039899 us-gaap:TreasuryStockMember 2019-12-31 0000039899 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0000039899 us-gaap:TreasuryStockMember 2018-12-31 0000039899 tgna:OtherRevenueSourceMember 2020-01-01 2020-06-30 0000039899 tgna:PoliticalMember 2019-04-01 2019-06-30 0000039899 tgna:OtherRevenueSourceMember 2019-01-01 2019-06-30 0000039899 tgna:AdvertisingAndMarketingServicesMember 2020-01-01 2020-06-30 0000039899 tgna:SubscriptionMember 2020-04-01 2020-06-30 0000039899 tgna:PoliticalMember 2019-01-01 2019-06-30 0000039899 tgna:SubscriptionMember 2019-01-01 2019-06-30 0000039899 tgna:AdvertisingAndMarketingServicesMember 2019-04-01 2019-06-30 0000039899 tgna:OtherRevenueSourceMember 2020-04-01 2020-06-30 0000039899 tgna:AdvertisingAndMarketingServicesMember 2019-01-01 2019-06-30 0000039899 tgna:PoliticalMember 2020-04-01 2020-06-30 0000039899 tgna:SubscriptionMember 2019-04-01 2019-06-30 0000039899 tgna:SubscriptionMember 2020-01-01 2020-06-30 0000039899 tgna:AdvertisingAndMarketingServicesMember 2020-04-01 2020-06-30 0000039899 tgna:OtherRevenueSourceMember 2019-04-01 2019-06-30 0000039899 tgna:PoliticalMember 2020-01-01 2020-06-30 0000039899 tgna:ElevenLocalTelevisionStationsFromNexstarMediaGroupNexstarStationsMember us-gaap:TransmissionServiceAgreementMember 2019-09-19 0000039899 tgna:RecentAcquisitionsMember 2020-06-30 0000039899 tgna:JusticeNetworkAndQuestMember 2019-06-18 0000039899 tgna:RecentAcquisitionsMember us-gaap:OtherIntangibleAssetsMember 2020-06-30 0000039899 tgna:ElevenLocalTelevisionStationsFromNexstarMediaGroupDispatchStationsMember 2019-08-08 0000039899 tgna:WTOLandKWESMember 2019-01-02 0000039899 tgna:ElevenLocalTelevisionStationsFromNexstarMediaGroupDispatchStationsMember us-gaap:LicensingAgreementsMember 2019-08-08 0000039899 tgna:JusticeNetworkAndQuestMember 2019-06-18 2019-06-18 0000039899 tgna:ElevenLocalTelevisionStationsFromNexstarMediaGroupNexstarStationsMember 2019-09-19 0000039899 tgna:ElevenLocalTelevisionStationsFromNexstarMediaGroupDispatchStationsMember us-gaap:TransmissionServiceAgreementMember 2019-08-08 0000039899 tgna:WTOLandKWESMember 2019-01-02 2019-01-02 0000039899 tgna:RecentAcquisitionsMember tgna:NetworkAffiliationAgreementsMember 2020-06-30 0000039899 tgna:ElevenLocalTelevisionStationsFromNexstarMediaGroupDispatchStationsMember 2019-08-08 2019-08-08 0000039899 tgna:WTOLandKWESMember us-gaap:TransmissionServiceAgreementMember 2019-01-02 0000039899 tgna:ElevenLocalTelevisionStationsFromNexstarMediaGroupDispatchStationsMember tgna:NetworkAffiliationAgreementsMember 2019-08-08 0000039899 tgna:RecentAcquisitionsMember us-gaap:TransmissionServiceAgreementMember 2020-06-30 0000039899 tgna:WTOLandKWESMember us-gaap:OtherIntangibleAssetsMember 2019-01-02 0000039899 tgna:ElevenLocalTelevisionStationsFromNexstarMediaGroupNexstarStationsMember 2019-09-19 2019-09-19 0000039899 tgna:ElevenLocalTelevisionStationsFromNexstarMediaGroupNexstarStationsMember us-gaap:LicensingAgreementsMember 2019-09-19 0000039899 tgna:RecentAcquisitionsMember 2020-01-01 2020-06-30 0000039899 tgna:JusticeNetworkAndQuestMember tgna:NetworkAffiliationAgreementsMember 2019-06-18 0000039899 tgna:JusticeNetworkAndQuestMember us-gaap:OtherIntangibleAssetsMember 2019-06-18 0000039899 tgna:JusticeNetworkAndQuestMember us-gaap:LicensingAgreementsMember 2019-06-18 0000039899 tgna:WTOLandKWESMember us-gaap:LicensingAgreementsMember 2019-01-02 0000039899 tgna:JusticeNetworkAndQuestMember us-gaap:TransmissionServiceAgreementMember 2019-06-18 0000039899 tgna:RecentAcquisitionsMember us-gaap:LicensingAgreementsMember 2020-06-30 0000039899 tgna:WTOLandKWESMember tgna:NetworkAffiliationAgreementsMember 2019-01-02 0000039899 tgna:ElevenLocalTelevisionStationsFromNexstarMediaGroupNexstarStationsMember tgna:NetworkAffiliationAgreementsMember 2019-09-19 0000039899 tgna:ElevenLocalTelevisionStationsFromNexstarMediaGroupNexstarStationsMember us-gaap:OtherIntangibleAssetsMember 2019-09-19 0000039899 tgna:ElevenLocalTelevisionStationsFromNexstarMediaGroupDispatchStationsMember us-gaap:OtherIntangibleAssetsMember 2019-08-08 0000039899 tgna:NexstarMediaGroupTelevisionStationsMember 2019-09-19 0000039899 tgna:NexstarMediaGroupTelevisionStationsMember 2019-09-19 2019-09-19 0000039899 tgna:DispatchStationsMember 2019-08-08 0000039899 tgna:DispatchStationsMember 2019-08-08 2019-08-08 0000039899 us-gaap:TransmissionServiceAgreementMember 2020-01-01 2020-06-30 0000039899 tgna:NexstarMediaGroupTelevisionStationsMember 2020-04-01 2020-04-30 0000039899 tgna:NetworkAffiliationAgreementsMember 2019-12-31 0000039899 tgna:NetworkAffiliationAgreementsMember 2020-06-30 0000039899 us-gaap:TransmissionServiceAgreementMember 2020-06-30 0000039899 us-gaap:OtherIntangibleAssetsMember 2020-06-30 0000039899 us-gaap:LicensingAgreementsMember 2019-12-31 0000039899 us-gaap:LicensingAgreementsMember 2020-06-30 0000039899 us-gaap:OtherIntangibleAssetsMember 2019-12-31 0000039899 us-gaap:TransmissionServiceAgreementMember 2019-12-31 0000039899 us-gaap:TradeNamesMember 2020-04-01 2020-06-30 0000039899 tgna:CareerBuilderMember 2020-01-01 2020-03-31 0000039899 tgna:CareerBuilderMember 2020-01-01 2020-06-30 0000039899 tgna:CareerBuilderMember 2019-12-31 0000039899 tgna:CareerBuilderMember 2020-06-30 0000039899 us-gaap:DomesticCountryMember 2020-04-01 2020-06-30 0000039899 srt:ScenarioForecastMember us-gaap:DomesticCountryMember 2020-07-01 2020-09-30 0000039899 tgna:UnsecuredFixedRateNotes4.875PercentDueSeptember2021Member 2019-12-31 0000039899 tgna:UnsecuredFixedRateNotes4.625PercentDueMarch2028Member 2020-06-30 0000039899 tgna:UnsecuredFloatingRateTermLoanDueQuarterlyThroughSeptember2020Member 2019-12-31 0000039899 tgna:UnsecuredFloatingRateTermLoanDueQuarterlyThroughJune2020Member 2019-12-31 0000039899 tgna:UnsecuredFixedRateNotes4.875PercentDueSeptember2021Member 2020-06-30 0000039899 tgna:UnsecuredFixedRateNotes7.75PercentDueJune2027Member 2019-12-31 0000039899 tgna:RevolvingCreditAgreementsExpiringAugust2024Member 2019-12-31 0000039899 tgna:UnsecuredFixedRateNotes5.500PercentDueSeptember2024Member 2020-06-30 0000039899 tgna:UnsecuredFixedRateNotes4.625PercentDueMarch2028Member 2019-12-31 0000039899 tgna:RevolvingCreditAgreementsExpiringAugust2024Member 2020-06-30 0000039899 tgna:UnsecuredFixedRateNotes6.375PercentDueOctober2023Member 2020-06-30 0000039899 tgna:UnsecuredFixedRateNotes5.00PercentDueSeptember2029Member 2019-12-31 0000039899 tgna:UnsecuredFixedRateNotes5.125PercentDueJuly2020Member 2019-12-31 0000039899 tgna:UnsecuredFixedRateNotes7.25PercentDueSeptember2027Member 2019-12-31 0000039899 tgna:UnsecuredFixedRateNotes7.75PercentDueJune2027Member 2020-06-30 0000039899 tgna:UnsecuredFixedRateNotes6.375PercentDueOctober2023Member 2019-12-31 0000039899 tgna:UnsecuredFloatingRateTermLoanDueQuarterlyThroughSeptember2020Member 2020-06-30 0000039899 tgna:UnsecuredFixedRateNotes5.125PercentDueJuly2020Member 2020-06-30 0000039899 tgna:UnsecuredFixedRateNotes5.500PercentDueSeptember2024Member 2019-12-31 0000039899 tgna:UnsecuredFloatingRateTermLoanDueQuarterlyThroughJune2020Member 2020-06-30 0000039899 tgna:UnsecuredFixedRateNotes5.00PercentDueSeptember2029Member 2020-06-30 0000039899 tgna:UnsecuredFixedRateNotes7.25PercentDueSeptember2027Member 2020-06-30 0000039899 tgna:RevolvingCreditAgreementsExpiringAugust2024Member 2020-06-10 2020-06-10 0000039899 tgna:UnsecuredFixedRateNotes5.125PercentDueJuly2020Member 2020-02-11 0000039899 2020-02-11 2020-02-11 0000039899 us-gaap:RevolvingCreditFacilityMember tgna:AmendedAndRestatedCompetitiveAdvanceAndRevolvingCreditAgreementMember us-gaap:LineOfCreditMember 2020-06-30 0000039899 tgna:UnsecuredFixedRateNotes5.125PercentDueJuly2020Member 2020-02-11 2020-02-11 0000039899 tgna:SeniorNotesBearingInterestat4.625PercentDueMarch2028Member 2020-01-09 0000039899 tgna:SeniorNotesBearingInterestat4.625PercentDueMarch2028Member us-gaap:SeniorNotesMember 2020-01-09 0000039899 tgna:SeniorNotesBearingInterestat4.625PercentDueMarch2028Member us-gaap:SeniorNotesMember 2020-02-11 0000039899 tgna:UnsecuredFixedRateNotes6.375PercentDueOctober2023Member 2020-02-11 0000039899 tgna:UnsecuredFixedRateNotes6.375PercentDueOctober2023Member 2020-02-11 2020-02-11 0000039899 tgna:RevolvingCreditAgreementsExpiringAugust2024Member 2020-06-11 2020-06-11 0000039899 tgna:DebtInstrumentCovenantPeriodTwoMember 2020-06-11 2020-06-11 0000039899 tgna:DebtInstrumentCovenantPeriodThreeMember 2020-06-11 2020-06-11 0000039899 tgna:DebtInstrumentCovenantPeriodOneMember 2020-06-11 2020-06-11 0000039899 tgna:DebtInstrumentCovenantPeriodFiveMember 2020-06-11 2020-06-11 0000039899 tgna:DebtInstrumentCovenantPeriodFourMember 2020-06-11 2020-06-11 0000039899 us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-06-30 0000039899 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2020-06-30 0000039899 us-gaap:PensionPlansDefinedBenefitMember 2020-01-01 2020-06-30 0000039899 us-gaap:AccruedLiabilitiesMember us-gaap:PensionPlansDefinedBenefitMember 2020-06-30 0000039899 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2020-01-01 2020-06-30 0000039899 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2019-01-01 2019-06-30 0000039899 us-gaap:PensionPlansDefinedBenefitMember 2020-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-04-01 2020-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-06-30 0000039899 us-gaap:AccumulatedTranslationAdjustmentMember 2019-04-01 2019-06-30 0000039899 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-06-30 0000039899 us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-04-01 2019-06-30 0000039899 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-31 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-06-30 0000039899 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-06-30 0000039899 us-gaap:AccumulatedTranslationAdjustmentMember 2020-06-30 0000039899 us-gaap:AccumulatedTranslationAdjustmentMember 2020-03-31 0000039899 us-gaap:AccumulatedTranslationAdjustmentMember 2020-04-01 2020-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-06-30 0000039899 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-03-31 0000039899 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-04-01 2019-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2020-04-01 2020-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetTransitionAssetObligationMember 2020-04-01 2020-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetTransitionAssetObligationMember 2020-01-01 2020-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-01-01 2019-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2020-01-01 2020-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetTransitionAssetObligationMember 2019-01-01 2019-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2020-04-01 2020-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetTransitionAssetObligationMember 2019-04-01 2019-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-01-01 2019-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-04-01 2019-06-30 0000039899 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2020-01-01 2020-06-30 0000039899 us-gaap:PerformanceSharesMember 2020-01-01 2020-06-30 0000039899 us-gaap:RestrictedStockMember 2020-01-01 2020-06-30 0000039899 us-gaap:PerformanceSharesMember 2019-04-01 2019-06-30 0000039899 us-gaap:PerformanceSharesMember 2019-01-01 2019-06-30 0000039899 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0000039899 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0000039899 us-gaap:PerformanceSharesMember 2020-04-01 2020-06-30 0000039899 us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0000039899 us-gaap:EmployeeStockOptionMember 2019-04-01 2019-06-30 0000039899 us-gaap:RestrictedStockMember 2020-04-01 2020-06-30 0000039899 us-gaap:RestrictedStockMember 2019-04-01 2019-06-30 0000039899 us-gaap:RestrictedStockMember 2019-01-01 2019-06-30 0000039899 us-gaap:FairValueInputsLevel2Member 2020-06-30 0000039899 us-gaap:FairValueInputsLevel2Member 2019-12-31 0000039899 tgna:ClayMasseyAssociatesP.C.v.GrayTelevisionMember 2019-06-01 2019-06-30 0000039899 2019-01-01 2019-12-31 0000039899 2018-05-01 2020-03-31 0000039899 tgna:ClayMasseyAssociatesP.C.v.GrayTelevisionMember 2018-07-30 2018-07-30 0000039899 tgna:EquityAndDebtInvestmentMember srt:AffiliatedEntityMember 2019-04-01 2019-06-30 0000039899 tgna:EquityAndDebtInvestmentMember srt:AffiliatedEntityMember 2019-12-31 0000039899 2017-04-01 2017-04-30 0000039899 tgna:EquityAndDebtInvestmentMember srt:AffiliatedEntityMember 2020-06-30 0000039899 2017-04-30 0000039899 us-gaap:SettledLitigationMember 2018-11-13 2018-12-13 0000039899 tgna:EquityAndDebtInvestmentMember srt:AffiliatedEntityMember 2020-04-01 2020-06-30 0000039899 2018-03-23 0000039899 us-gaap:SubsequentEventMember 2020-07-03 2020-07-03 0000039899 us-gaap:SettledLitigationMember 2019-06-17 2019-06-17 0000039899 2019-01-01 2020-06-30 0000039899 2020-03-02 2020-03-02 0000039899 tgna:GrayTelevisionMember 2020-03-02 2020-03-02 tgna:segment tgna:investment xbrli:pure tgna:radio_station tgna:market iso4217:USD xbrli:shares tgna:affiliate iso4217:USD xbrli:shares tgna:station tgna:defendant


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 10-Q
_______________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-6961
___________________________
TEGNA INC.
(Exact name of registrant as specified in its charter)
___________________________
Delaware
 
16-0442930
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
 
 
 
 
   8350 Broad Street, Suite 2000,
Tysons,
Virginia
 
22102-5151
(Address of principal executive offices)
 
(Zip Code)
(703)
873-6600
 
 
(Registrant’s telephone number, including area code)
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
 
 
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock
TGNA
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
 
 
 
 
Non-accelerated filer
Smaller reporting company
 
 
 
 
 
 
Emerging growth company

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

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

The total number of shares of the registrant’s Common Stock, $1 par value, outstanding as of July 31, 2020 was 218,955,098.
 



INDEX TO TEGNA INC.
June 30, 2020 FORM 10-Q
 
Item No.
 
Page
 
PART I. FINANCIAL INFORMATION
 
 
 
 
1.
Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.
 
 
 
3.
 
 
 
4.
 
 
 
 
PART II. OTHER INFORMATION
 
 
 
 
1.
 
 
 
1A.
 
 
 
2.
 
 
 
3.
 
 
 
4.
 
 
 
5.
 
 
 
6.
 
 
 

2



PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

TEGNA Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands of dollars (Unaudited)
 
June 30, 2020
 
Dec. 31, 2019
 
 
 
 
ASSETS
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
173,070

 
$
29,404

Accounts receivable, net of allowances of $8,808 and $3,723, respectively
485,211

 
581,765

Other receivables
14,909

 
19,640

Syndicated programming rights
18,786

 
49,616

Prepaid expenses and other current assets
19,081

 
26,899

Total current assets
711,057

 
707,324

Property and equipment
 
 
 
Cost
1,025,235

 
997,736

Less accumulated depreciation
(544,274
)
 
(512,015
)
Net property and equipment
480,961

 
485,721

Intangible and other assets
 
 
 
Goodwill
2,968,655

 
2,950,587

Indefinite-lived and amortizable intangible assets, less accumulated amortization of $201,355 and $168,452, respectively
2,518,140

 
2,561,614

Right-of-use assets for operating leases
101,574

 
103,461

Investments and other assets
148,031

 
145,269

Total intangible and other assets
5,736,400

 
5,760,931

Total assets
$
6,928,418

 
$
6,953,976

The accompanying notes are an integral part of these condensed consolidated financial statements.

3



TEGNA Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands of dollars, except par value and share amounts (Unaudited)
 
June 30, 2020
 
Dec. 31, 2019
 
 
 
 
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
 
 
 
Current liabilities
 
 
 
Accounts payable
$
37,019

 
$
51,894

Accrued liabilities
 
 


   Compensation
44,909

 
63,876

   Interest
50,464

 
46,013

   Contracts payable for programming rights
101,182

 
119,872

   Other
65,333

 
60,983

Dividends payable

 
15,188

Income taxes payable
17,631

 
3,332

Total current liabilities
316,538

 
361,158

Noncurrent liabilities
 
 
 
Income taxes
7,311

 
7,490

Deferred income tax liability
523,528

 
515,621

Long-term debt
4,098,076

 
4,179,245

Pension liabilities
118,114

 
127,146

Operating lease liabilities
103,466

 
105,902

Other noncurrent liabilities
71,705

 
67,037

Total noncurrent liabilities
4,922,200

 
5,002,441

Total liabilities
5,238,738

 
5,363,599

 
 
 
 
Redeemable noncontrolling interest (see Note 11)
14,373

 

 
 
 
 
Commitments and contingent liabilities (see Note 11)


 


 
 
 
 
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
140,255

 
247,497

Retained earnings
6,729,896

 
6,655,088

Accumulated other comprehensive loss
(140,179
)
 
(142,597
)
Less treasury stock at cost, 105,661,402 shares and 106,955,082 shares, respectively
(5,379,084
)
 
(5,494,030
)
Total equity
1,675,307

 
1,590,377

Total liabilities, redeemable noncontrolling interest and equity
$
6,928,418

 
$
6,953,976

The accompanying notes are an integral part of these condensed consolidated financial statements.



4



TEGNA Inc.
CONSOLIDATED STATEMENTS OF INCOME
Unaudited, in thousands of dollars, except per share amounts
 
Quarter ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
 
 
 
 
 
 
 
 
Revenues
$
577,627

 
$
536,932

 
$
1,261,816

 
$
1,053,685

 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Cost of revenues1
355,367


285,293

 
724,735

 
566,604

Business units - Selling, general and administrative expenses
85,008


73,941

 
177,976

 
145,406

Corporate - General and administrative expenses
28,312

 
15,836

 
50,026

 
30,571

Depreciation
16,711


14,533

 
33,611

 
29,450

Amortization of intangible assets
17,248


8,823

 
33,464

 
17,512

Spectrum repacking reimbursements and other, net
(116
)

(4,306
)
 
(7,631
)
 
(11,319
)
Total
502,530

 
394,120

 
1,012,181

 
778,224

Operating income
75,097

 
142,812

 
249,635

 
275,461

 
 
 
 
 
 
 
 
Non-operating income (expense):
 
 
 
 
 
 
 
Equity income (loss) in unconsolidated investments, net
1,921

 
(615
)
 
10,936

 
11,413

Interest expense
(51,877
)
 
(46,327
)
 
(108,837
)
 
(92,712
)
Other non-operating items, net
1,039

 
8,964

 
(18,231
)
 
7,425

Total
(48,917
)

(37,978
)
 
(116,132
)
 
(73,874
)
 
 
 
 
 
 
 
 
Income before income taxes
26,180

 
104,834

 
133,503

 
201,587

Provision for income taxes
6,607


24,879

 
27,732

 
47,653

Net Income
19,573

 
79,955

 
105,771

 
153,934

Net loss attributable to redeemable noncontrolling interest
374

 

 
484

 

Net income attributable to TEGNA Inc.
$
19,947

 
$
79,955

 
$
106,255

 
$
153,934

 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
Basic
$
0.09

 
$
0.37

 
$
0.48

 
$
0.71

Diluted
$
0.09

 
$
0.37

 
$
0.48

 
$
0.71

 
 
 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
Basic shares
219,128

 
217,089

 
218,703

 
216,900

Diluted shares
219,426

 
217,905

 
219,144

 
217,555

 
 
 
 
 
 
 
 
1 Cost of revenues exclude charges for depreciation and amortization expense, which are shown separately above.
The accompanying notes are an integral part of these condensed consolidated financial statements.

5



TEGNA Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited, in thousands of dollars
 
Quarter ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
 
 
 
 
 
 
 
 
Net income
$
19,573

 
$
79,955

 
$
105,771

 
$
153,934

Other comprehensive income, before tax:
 
 
 
 
 
 
 
Foreign currency translation adjustments
(273
)
 
(471
)
 
130

 
(457
)
Recognition of previously deferred post-retirement benefit plan costs
1,604

 
1,437

 
3,102

 
2,862

Pension lump-sum payment charges

 
686

 

 
686

Other comprehensive income, before tax
1,331

 
1,652

 
3,232

 
3,091

Income tax effect related to components of other comprehensive income
(335
)
 
(414
)
 
(814
)
 
(774
)
Other comprehensive income, net of tax
996

 
1,238

 
2,418

 
2,317

Comprehensive income
20,569

 
81,193

 
108,189

 
156,251

Comprehensive loss attributable to redeemable noncontrolling interest
374

 

 
484

 

Comprehensive income attributable to TEGNA Inc.
$
20,943

 
$
81,193

 
$
108,673

 
$
156,251

The accompanying notes are an integral part of these condensed consolidated financial statements.

6



TEGNA Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited, in thousands of dollars
 
Six months ended June 30,
 
2020
 
2019
 
 
 
 
Cash flows from operating activities:
 
 
 
Net income
$
105,771

 
$
153,934

Adjustments to reconcile net income to net cash flow from operating activities:
 
 
 
Depreciation and amortization
67,075

 
46,962

Stock-based compensation
7,568

 
9,442

     Company stock 401(k) contribution
8,566

 
3,244

Gains on sales of assets

 
(11,725
)
Equity loss (income) from unconsolidated investments, net
(10,936
)
 
(11,413
)
Pension contributions, net of expense
(5,885
)

(3,812
)
Change in other assets and liabilities, net of acquisitions:
 
 
 
Decrease (increase) in trade receivables
91,246

 
(20,091
)
Decrease in accounts payable
(13,821
)
 
(19,535
)
Increase (decrease) in interest and taxes payable
32,056

 
(6,910
)
Increase (decrease) in deferred revenue
(1,123
)
 
(1,511
)
Change in other assets and liabilities, net
33,025

 
(21,734
)
Net cash flow from operating activities
313,542

 
116,851

Cash flows from investing activities:
 
 
 
Purchase of property and equipment
(24,308
)
 
(37,684
)
Reimbursements from spectrum repacking
9,768

 
8,439

Payments for acquisitions of businesses and other assets, net of cash acquired
(15,841
)
 
(185,926
)
Payments for investments
(704
)
 
(3,553
)
Proceeds from investments
5,028

 
955

Proceeds from sale of assets and businesses
5,000

 
20,064

Net cash flow used for investing activities
(21,057
)
 
(197,705
)
Cash flows from financing activities:
 
 
 
Payments under revolving credit facilities, net
(68,000
)
 
55,000

Proceeds from borrowings
1,000,000

 

Debt repayments
(1,010,000
)
 
(50,000
)
Payments for debt issuance costs and early redemption fee
(29,948
)
 

Proceeds from sale of minority ownership interest in Premion
14,000



Dividends paid
(45,776
)
 
(30,294
)
Other, net
(9,095
)
 
(446
)
Net cash flow used for financing activities
(148,819
)
 
(25,740
)
Increase (decrease) in cash
143,666

 
(106,594
)
Balance of cash, beginning of period
29,404

 
135,862

Balance of cash, end of period
$
173,070

 
$
29,268

 
 
 
 
Supplemental cash flow information:
 
 
 
Cash paid (received) for income taxes, net of refunds
$
465

 
$
55,785

Cash paid for interest
$
100,074

 
$
85,961

The accompanying notes are an integral part of these condensed consolidated financial statements.

7



TEGNA Inc.
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTEREST
Unaudited, in thousands of dollars, except per share data

Quarters Ended:
Redeemable noncontrolling interest
 
 
Common
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Treasury
stock
Total Equity
Balance at Mar. 31, 2020
$
14,093

 
 
$
324,419

$
152,106

$
6,725,911

$
(141,175
)
$
(5,403,005
)
$
1,658,256

Net income (loss)
(374
)
 
 


19,947



19,947

Other comprehensive income, net of tax

 
 



996


996

Total comprehensive income
 
 
 
 
 
 
 
 
20,943

Dividends declared: $0.07 per share

 
 


(15,308
)


(15,308
)
Company stock 401(k) contribution

 
 

(17,888
)


21,316

3,428

Stock-based awards activity

 
 

(2,627
)


2,605

(22
)
Stock-based compensation

 
 

8,325




8,325

Accretion of redeemable noncontrolling interest
280

 
 


(280
)


(280
)
Adjustment of redeemable noncontrolling interest to redemption value
374

 
 


(374
)


(374
)
Other activity

 
 

339




339

Balance at June 30, 2020
$
14,373

 
 
$
324,419

$
140,255

$
6,729,896

$
(140,179
)
$
(5,379,084
)
$
1,675,307

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redeemable noncontrolling interest
 
 
Common
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Treasury
stock
Total
Balance at Mar. 31, 2019
$

 
 
$
324,419

$
262,823

$
6,488,352

$
(135,432
)
$
(5,534,911
)
$
1,405,251

Net income

 
 


79,955



79,955

Other comprehensive income, net of tax

 
 



1,238


1,238

Total comprehensive income
 
 
 
 
 
 
 
 
81,193

Dividends declared: $0.07 per share

 
 


(15,158
)


(15,158
)
Company stock 401(k) contribution

 
 

(7,259
)


10,503

3,244

Stock-based awards activity

 
 

(4,861
)


4,752

(109
)
Stock-based compensation

 
 

5,008




5,008

Other activity

 
 

313




313

Balance at June 30, 2019
$

 
 
$
324,419

$
256,024

$
6,553,149

$
(134,194
)
$
(5,519,656
)
$
1,479,742

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

8



TEGNA Inc.
 
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NON-CONTROLLING INTEREST
Unaudited, in thousands of dollars, except per share data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended:
Redeemable noncontrolling interest
 
 
Common
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Treasury
stock
Total
Balance at Dec. 31, 2019
$

 
 
$
324,419

$
247,497

$
6,655,088

$
(142,597
)
$
(5,494,030
)
$
1,590,377

Net income (loss)
(484
)
 
 


106,255



106,255

Other comprehensive income, net of tax

 
 



2,418


2,418

Total comprehensive income
 
 
 
 
 
 
 
 
108,673

Dividends declared: $0.14 per share

 
 


(30,590
)


(30,590
)
Company stock 401(k) contribution

 
 

(35,719
)


44,285

8,566

Stock-based awards activity

 
 

(79,756
)


70,661

(9,095
)
Stock-based compensation

 
 

7,568




7,568

Sale of minority ownership interest in Premion
14,000

 
 






Accretion of redeemable noncontrolling interest
373

 
 


(373
)


(373
)
Adjustment of redeemable noncontrolling interest to redemption value
484

 
 


(484
)


(484
)
Other activity

 
 

665




665

Balance at June 30, 2020
$
14,373

 
 
$
324,419

$
140,255

$
6,729,896

$
(140,179
)
$
(5,379,084
)
$
1,675,307

 
 
 
 
 
 
 
 
 
 
 
Redeemable noncontrolling interest
 
 
Common
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Treasury
stock
Total
Balance at Dec. 31, 2018
$

 
 
$
324,419

$
301,352

$
6,429,512

$
(136,511
)
$
(5,577,848
)
$
1,340,924

Net income

 
 


153,934



153,934

Other comprehensive income, net of tax

 
 



2,317


2,317

Total comprehensive income
 
 
 
 
 
 
 
 
156,251

Dividends declared: $0.14 per share

 
 


(30,297
)


(30,297
)
Company stock 401(k) contribution

 
 

(7,259
)


10,503

3,244

Stock-based awards activity

 
 

(48,136
)


47,689

(447
)
Stock-based compensation

 
 

9,442




9,442

Other activity

 
 

625




625

Balance at June 30, 2019
$

 
 
$
324,419

$
256,024

$
6,553,149

$
(134,194
)
$
(5,519,656
)
$
1,479,742

The accompanying notes are an integral part of these condensed consolidated financial statements.


9



TEGNA Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 – Accounting policies

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 statement of the 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, 2019.

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. During the first quarter of 2020, a novel strain of coronavirus (COVID-19) believed to have been first identified in Wuhan, China, spread globally, including to every state in the United States. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. The federal and state governments in the United States responded by instituting a wide variety of mitigating control measures, including, mandatory quarantines, closures of non-essential businesses and all other places of social interaction, while implementing “shelter in place” orders and travel restrictions in an effort to slow the spread of the virus. Such mitigating measures began negatively impacting our advertising and marketing services (AMS) revenue stream in mid-March as demand for non-political advertising softened. This trend has continued in the second quarter of 2020 as such measures either remain largely in place or were being slowly relaxed as certain state and local governments have begun to implement multi-step policies towards re-opening and lifting the control measures. Demand improved for advertising during May and June as steps toward re-opening were implemented. However, some of the states which re-opened (particularly in the southern United States) also experienced increases in new COVID-19 cases late in the second quarter and early in the third quarter, forcing some to reinstate control measures and restrict public gatherings.

Beginning in mid-March, as a result of the expected near-term impact on non-political advertising demand caused by the COVID-19 pandemic, we implemented cost saving measures to reduce operating expenses and discretionary capital expenditures. These measures included implementing temporary furloughs for one week during the second quarter for most personnel, reducing compensation for executives and our board of directors, and reducing non-critical discretionary spending. As is true of most businesses, the ultimate magnitude of the COVID-19 pandemic cannot be reasonably estimated at this time, but we do expect it to have a material adverse effect on our near-term results of operations.

While it is too early to predict the duration of the pandemic or the long term effects on our financial condition, results of operations, and liquidity, we use the best information available in developing significant estimates included in our financial statements. Actual results could differ from these estimates, and these differences resulting from changes in facts and circumstances could be material. Significant estimates include, but are not limited to, evaluation of goodwill and other intangible assets for impairment, business combinations, 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. 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 income (loss) in unconsolidated investments, net” in the Consolidated Statements of Income.

We operate one operating and reportable segment, which primarily consists of our 63 television stations and two radio stations operating in 51 markets, offering high-quality television programming and digital content. Our reportable segment determination is based on our management and internal reporting structure, the nature of products and services we offer, and the financial information that is evaluated regularly by our chief operating decision maker.

Accounting guidance adopted in 2020: In June 2016, the Financial Accounting Standards Board (FASB) issued new guidance related to the measurement of credit losses on financial instruments. The new guidance changed the way credit losses on accounts receivable are estimated. Under previous GAAP, credit losses on accounts receivable were recognized once it was probable that such losses will occur. Under the new guidance, we are required to estimate credit losses based on the expected amount of future collections which may result in earlier recognition of doubtful accounts. We adopted the new guidance on January 1, 2020 using a modified retrospective approach. Due to the short-term nature of our accounts receivable balance, there was no material change to our allowance for doubtful accounts as a result of adopting this new guidance.

In March 2019, the FASB issued new guidance related to the accounting for episodic television series. The most significant aspect of this new guidance that was applicable to us relates to the level at which our capitalized programming assets are monitored for impairment. Under the new guidance these assets are monitored at the film group level which is the lowest level at

10



which independently identifiable cash flows are identifiable. We adopted the new guidance prospectively on January 1, 2020. There was no material impact on our consolidated financial statements and related disclosures as of the adoption date.

Programming assets are recorded at the gross amount of the related liability when the programs are available for telecasting. The related assets are recorded at the lower of cost or estimated net realizable value. Expense is recognized on a straight line basis which appropriately matches the cost of the programs with the revenues associated with them. During the first six months of 2020 and 2019 we incurred programming expense of $36.0 million and $27.0 million and in the second quarter of 2020 and 2019, we incurred programming expense of $17.8 million and $13.5 million, respectively. Programming expense is included in the “Cost of revenues” line item of our Consolidated Statements of Income. As of June 30, 2020 $18.8 million of programming assets had been recorded which will be expensed within the next twelve months.

We evaluate the net realizable value of our program broadcasting contract assets when a triggering event occurs, such as a change in our intended usage, or sustained lower-than-expected ratings for the program. Impairment analyses are performed at the syndicated program level (across all stations that utilize the program). We determine the net realizable value based on a projection of the estimated revenues less projected direct costs associated with the syndicated program (which is classified as Level 3 in the fair value hierarchy). If the future direct costs exceed expected revenues, impairment of the program asset may be required. No impairment charges were recognized in 2020 or 2019.

New accounting guidance not yet adopted: In August 2018, the FASB issued new guidance that changed disclosures related to defined benefit pension and other postretirement benefit plans. The guidance removed disclosures that are no longer economically relevant, clarifies certain existing disclosure requirements and added some new disclosures. The most relevant elimination for us is the annual disclosure of the amount of gain/loss and prior service cost/credit amortization expected in the following year. Additions most relevant to us include annually disclosing narrative explanations of the drivers for significant changes in plan obligations or assets, and disclosure for cost of living adjustments for certain participants of our TEGNA retirement plan. We will include the new disclosures in our 2020 Annual Report on Form 10-K and will apply them on a retrospective basis.

There is currently no other pending accounting guidance that we expect to have a material impact on our consolidated financial statements or disclosures.

Trade receivables and allowances for doubtful accounts: Trade receivables are recorded at invoiced amounts and generally do not bear interest. The allowance for doubtful accounts reflects our estimate of credit exposure, determined principally on the basis of our collection experience, aging of our receivables and any specific reserves needed for certain customers based on their credit risk. Our allowance also takes into account expected future trends which may impact our customers’ ability to pay, such as economic growth, unemployment and demand for our products and services, including the impacts of the COVID-19 pandemic on these trends. We monitor the credit quality of our customers and their ability to pay through the use of analytics and communication with individual customers. As of June 30, 2020, our allowance for doubtful accounts was $8.8 million as compared to $3.7 million as of December 31, 2019.

Revenue recognition: Revenue is recognized upon the transfer of control of promised services to our customers in an amount that reflects the consideration we expect to receive in exchange for those services. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Amounts received from customers in advance of providing services to our customers are recorded as deferred revenue.

The primary sources of our revenues are: 1) advertising & marketing services revenues, which include local and national non-political television advertising, digital marketing services (including Premion), and advertising on the stations’ websites and tablet and mobile products; 2) subscription revenues, reflecting fees paid by satellite, cable, OTT (companies that deliver video content to consumers over the Internet) and telecommunications providers to carry our television signals on their systems; 3) political advertising revenues, which are driven by even year election cycles at the local and national level (e.g. 2020, 2018) and particularly in the second half of those years; and 4) other services, such as production of programming and advertising material.

Revenue earned by these sources in the second quarter and first six months of 2020 and 2019 are shown below (amounts in thousands):
 
Quarter ended June 30,
 
Six months ended June 30,
 
2020
 
2019
 
2020
 
2019
 
 
 
 
 
 
 
 
Advertising & Marketing Services
$
229,083

 
$
289,569

 
$
524,236

 
$
553,971

Subscription
323,475

 
236,162

 
656,277

 
477,737

Political
17,544

 
3,229

 
64,931

 
5,933

Other
7,525

 
7,972

 
16,372

 
16,044

Total revenues
$
577,627

 
$
536,932

 
$
1,261,816

 
$
1,053,685



11



NOTE 2 – Acquisitions

During 2019, we acquired the television stations listed in the table below, and a summary of each acquisition follows:

Market
Station
Affiliation
Seller
Indianapolis, IN
WTHR
NBC
Dispatch Broadcast Group
Columbus, OH
WBNS
CBS
Dispatch Broadcast Group
Hartford-New Haven, CT
WTIC/WCCT
FOX/CW
Nexstar Media Group
Harrisburg-Lancaster-Lebanon-York, PA
WPMT
FOX
Nexstar Media Group
Memphis, TN
WATN/WLMT
ABC/CW
Nexstar Media Group
Wilkes Barre-Scranton, PA
WNEP
ABC
Nexstar Media Group
Des Moines-Ames, IA
WOI/KCWI
ABC/CW
Nexstar Media Group
Huntsville-Decatur-Florence, AL
WZDX
FOX
Nexstar Media Group
Davenport, IA and Rock Island-Moline, IL
WQAD
ABC
Nexstar Media Group
Ft. Smith-Fayetteville-Springdale-Rogers, AR
KFSM
CBS
Nexstar Media Group
Toledo, OH
WTOL
CBS
Gray Television
Midland-Odessa, TX
KWES
NBC
Gray Television


Nexstar Stations

On September 19, 2019, we completed our acquisition of 11 local television stations in eight markets, including eight Big Four affiliates, from Nexstar Media Group (the Nexstar Stations). These stations were divested by Nexstar Media Group in connection with its acquisition of Tribune Media Company. The purchase price for the Nexstar Stations was $769.9 million which included a base purchase price of $740.0 million and working capital of $29.9 million (approximately $0.8 million was paid in April 2020 after finalization of the working capital true-up with the seller).

Dispatch Stations

On August 8, 2019, we completed the acquisition of Dispatch Broadcast Group’s two top-rated television stations and two radio stations (the Dispatch Stations). The purchase price for the Dispatch Stations was $560.5 million which consisted of a base purchase price of $535.0 million and working capital and cash acquired of $25.5 million.

Justice and Quest Multicast Networks

On June 18, 2019, we completed the acquisition of the remaining approximately 85% interest that we did not previously own in the multicast networks Justice Network (recently rebranded as True Crime Network) and Quest from Cooper Media. Cash paid for this acquisition was $77.1 million (which included $4.6 million for working capital).
 
Gray Stations

On January 2, 2019, we completed our acquisition of WTOL and KWES from Gray Television, Inc. for $109.9 million in cash (which included $4.9 million for working capital paid at closing).


12



The following table summarizes the fair values of the assets acquired and liabilities assumed in connection with these acquisitions (in thousands):

 
 
Nexstar Stations
 
Dispatch Stations
 
Justice & Quest
 
Gray Stations
 
Total
 
 
 
 
 
 
 
 
 
 
 
Cash
 
$

 
$
2,363

 
$


$

 
$
2,363

Accounts receivable
 
34,680

 
26,344

 
8,501


5,553

 
75,078

Prepaid and other current assets
 
3,776

 
6,092

 
6,987


987

 
17,842

Property and equipment
 
45,186

 
40,418

 
361


11,757

 
97,722

Goodwill
 
128,191

 
202,274

 
23,567


19,405

 
373,437

FCC licenses
 
374,269

 
295,983

 


47,061

 
717,313

Network affiliation agreements
 
123,926

 
60,765

 

 
14,420

 
199,111

Retransmission agreements
 
68,316

 
33,107

 

 
12,198

 
113,621

Other intangible assets
 

 

 
52,553



 
52,553

Right-of-use assets for operating leases
 
22,715

 
362

 

 
251

 
23,328

Other noncurrent assets
 
237

 

 
5,253


18

 
5,508

     Total assets acquired
 
$
801,296

 
$
667,708

 
$
97,222

 
$
111,650

 
$
1,677,876

Accounts Payable
 
2,037

 
954

 
725


1

 
3,717

Accrued liabilities
 
8,544

 
9,011

 
4,236


1,494

 
23,285

Deferred income tax liability
 

 
97,044

 
(462
)
 

 
96,582

Operating lease liabilities - noncurrent
 
20,346

 
226

 

 
235

 
20,807

Other noncurrent liabilities
 
426

 

 
2,677



 
3,103

     Total liabilities assumed
 
$
31,353

 
$
107,235

 
$
7,176

 
$
1,730

 
$
147,494

     Net assets acquired
 
$
769,943

 
$
560,473

 
$
90,046

 
$
109,920

 
$
1,530,382

 
 
 
 
 
 
 
 
 
 
 
Less: cash acquired
 
$

 
$
(2,363
)
 
$

 
$

 
$
(2,363
)
Less: fair value of existing ownership
 

 

 
(12,995
)
 

 
(12,995
)
Cash paid for acquisitions
 
$
769,943

 
$
558,110

 
$
77,051

 
$
109,920</