SEC Filings

10-Q
TEGNA INC filed this Form 10-Q on 11/08/2018
Entire Document
 


NOTE 8 – Earnings per share

Our earnings per share (basic and diluted) are presented below (in thousands of dollars, except per share amounts):
 
Quarter ended Sept. 30,
 
Nine months ended Sept. 30,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Net income from continuing operations
$
92,826

 
$
50,754

 
$
240,525

 
$
144,682

Income (loss) from discontinued operations, net of tax
4,325

 
(10,803
)
 
4,325

 
(233,261
)
Net loss attributable to noncontrolling interests from discontinued operations

 
2,806

 

 
58,698

Net income (loss) attributable to TEGNA Inc.
$
97,151

 
$
42,757

 
$
244,850

 
$
(29,881
)
 
 
 
 
 
 
 
 
Weighted average number of common shares outstanding - basic
216,015

 
215,863

 
216,210

 
215,558

Effect of dilutive securities:
 
 
 
 


 


Restricted stock units
167

 
828

 
116

 
880

Performance share units

 
721

 
72

 
674

Stock options
166

 
683

 
219

 
715

Weighted average number of common shares outstanding - diluted
216,348

 
218,095

 
216,617

 
217,827

 
 
 
 
 
 
 
 
Earnings from continuing operations per share - basic
$
0.43

 
$
0.24

 
$
1.11

 
$
0.67

Earnings (loss) from discontinued operations per share - basic
0.02

 
(0.04
)
 
0.02

 
(0.81
)
Net income (loss) per share - basic
$
0.45

 
$
0.20

 
$
1.13

 
$
(0.14
)
 
 
 
 
 
 
 
 
Earnings from continuing operations per share - diluted
$
0.43

 
$
0.23

 
$
1.11

 
$
0.66

Earnings (loss) from discontinued operations per share - diluted
0.02

 
(0.04
)
 
0.02

 
(0.80
)
Net income (loss) per share - diluted
$
0.45

 
$
0.19

 
$
1.13

 
$
(0.14
)

Our calculation of diluted earnings per share includes the impact of the assumed vesting of outstanding restricted stock units, performance share units, and the exercise of outstanding stock options based on the treasury stock method when dilutive. The diluted earnings per share amounts exclude the effects of approximately 189,000 and 235,000 stock awards for the three and nine months ended September 30, 2018, respectively; and 96,000 and 142,000 for the three and nine months ended September 30, 2017, respectively, as their inclusion would be accretive to earnings per share.

NOTE 9 – 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.

Our deferred compensation investments were valued using Level 1 inputs with a fair value of $14.6 million as of December 31, 2017. Our deferred compensation assets were invested in a fixed income mutual fund. During the first quarter of 2018, we liquidated the deferred compensation investment to cover payments made to SERP participants (see Note 6).

Cost method investments in private companies are recorded at cost, less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. The carrying value of these investments was $24.2 million as of September 30, 2018 and $17.4 million as of December 31, 2017. During the nine months ended September 30, 2018 there were no events or changes in circumstance that suggested an impairment or an

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