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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 September 30, 2021
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,Virginia22102-5151
(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 classTrading SymbolName of each exchange on which registered
Common StockTGNANew 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 October 31, 2021 was 221,281,397.



INDEX TO TEGNA INC.
Sept. 30, 2021 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)
Sept. 30, 2021Dec. 31, 2020
ASSETS
Current assets
Cash and cash equivalents$51,214 $40,968 
Accounts receivable, net of allowances of $6,151 and $7,035, respectively
601,500 550,755 
Other receivables14,688 14,031 
Syndicated programming rights67,723 47,331 
Prepaid expenses and other current assets21,986 19,509 
Total current assets757,111 672,594 
Property and equipment
Cost1,034,017 1,026,459 
Less accumulated depreciation(574,151)(556,100)
Net property and equipment459,866 470,359 
Intangible and other assets
Goodwill2,981,587 2,968,693 
Indefinite-lived and amortizable intangible assets, less accumulated amortization of $282,889 and $235,582, respectively
2,457,192 2,503,644 
Right-of-use assets for operating leases90,017 97,190 
Investments and other assets184,873 136,219 
Total intangible and other assets5,713,669 5,705,746 
Total assets$6,930,646 $6,848,699 
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)
Sept. 30, 2021Dec. 31, 2020
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current liabilities
Accounts payable$46,333 $58,049 
Accrued liabilities
   Compensation53,970 46,213 
   Interest15,565 47,249 
   Contracts payable for programming rights143,408 130,522 
   Other86,126 78,219 
Income taxes payable5,351 63,923 
Total current liabilities350,753 424,175 
Noncurrent liabilities
Income taxes9,491 7,303 
Deferred income tax liability557,419 530,240 
Long-term debt3,336,878 3,553,220 
Pension liabilities66,405 85,908 
Operating lease liabilities91,790 99,337 
Other noncurrent liabilities82,377 75,488 
Total noncurrent liabilities4,144,360 4,351,496 
Total liabilities4,495,113 4,775,671 
Commitments and contingent liabilities (see Note 9)
Redeemable noncontrolling interest (see Note 1)15,826 14,933 
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 capital27,941 113,267 
Retained earnings7,351,426 7,075,640 
Accumulated other comprehensive loss(76,693)(121,076)
Less treasury stock at cost, 103,200,190 shares and 104,918,360 shares, respectively
(5,207,386)(5,334,155)
Total equity2,419,707 2,058,095 
Total liabilities, redeemable noncontrolling interest and equity$6,930,646 $6,848,699 
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 Sept. 30,Nine months ended Sept. 30,
2021202020212020
Revenues$756,487 $738,389 $2,216,446 $2,000,205 
Operating expenses:
Cost of revenues1
399,751 379,185 1,191,561 1,103,920 
Business units - Selling, general and administrative expenses
100,425 89,943 286,700 267,919 
Corporate - General and administrative expenses
11,891 11,263 51,944 61,289 
Depreciation
16,792 16,086 48,526 49,697 
Amortization of intangible assets
15,774 17,113 47,307 50,577 
Spectrum repacking reimbursements and other, net
504 (2,902)(2,394)(10,533)
Total545,137 510,688 1,623,644 1,522,869 
Operating income211,350 227,701 592,802 477,336 
Non-operating income (expense):
Equity (loss) income in unconsolidated investments, net (1,790)(2,529)(5,716)8,407 
Interest expense
(46,477)(51,896)(139,571)(160,733)
Other non-operating items, net2,486 961 4,340 (17,270)
Total(45,781)(53,464)(140,947)(169,596)
Income before income taxes165,569 174,237 451,855 307,740 
Provision for income taxes36,870 41,967 103,470 69,699 
Net Income
128,699 132,270 348,385 238,041 
Net (income) loss attributable to redeemable noncontrolling interest(419)(51)(861)433 
Net income attributable to TEGNA Inc.$128,280 $132,219 $347,524 $238,474 
Net income per share:
Basic $0.58 $0.60 $1.57 $1.08 
Diluted $0.58 $0.60 $1.56 $1.08 
Weighted average number of common shares outstanding:
Basic shares221,805 219,579 221,314 218,997 
Diluted shares222,799 219,977 222,172 219,423 
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 Sept. 30,Nine months ended Sept. 30,
2021202020212020
Net income$128,699 $132,270 $348,385 $238,041 
Other comprehensive income, before tax:
Foreign currency translation adjustments(53)(93)698 37 
Pension and other post retirement benefit items
Recognition of previously deferred post-retirement benefit plan costs1,290 1,551 3,869 4,653 
Pension payment timing related charge946  946  
Pension and other postretirement benefit items2,236 1,551 4,815 4,653 
Unrealized gain on available-for-sale investment during the period54,354  54,354  
Other comprehensive income, before tax56,537 1,458 59,867 4,690 
Income tax effect related to components of other comprehensive income(14,626)(366)(15,484)(1,180)
Other comprehensive income, net of tax41,911 1,092 44,383 3,510 
Comprehensive income170,610 133,362 392,768 241,551 
Comprehensive (income) loss attributable to redeemable noncontrolling interest(419)(51)(861)433 
Comprehensive income attributable to TEGNA Inc.$170,191 $133,311 $391,907 $241,984 
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
Nine months ended Sept. 30,
20212020
Cash flows from operating activities:
Net income$348,385 $238,041 
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation and amortization95,833 100,274 
Stock-based compensation23,137 12,578 
     Company stock 401(k) contribution13,575 13,023 
Equity loss (income) from unconsolidated investments, net5,716 (8,407)
Pension contributions, net of income(14,821)(8,144)
Change in other assets and liabilities, net of acquisitions:
(Increase) decrease in trade receivables(49,687)73,838 
(Decrease) increase in accounts payable(11,716)10,636 
(Decrease) increase in interest and taxes payable(76,372)13,793 
Decrease in deferred revenue1,784 27,706 
Change in other assets and liabilities, net6,770 42,413 
Net cash flow from operating activities342,604 515,751 
Cash flows from investing activities:
Purchase of property and equipment(39,418)(30,583)
Reimbursements from spectrum repacking5,030 12,670 
Payments for acquisitions of businesses and other assets, net of cash acquired(13,335)(15,841)
Purchases of investments(1,023)(709)
Proceeds from investments3,094 5,028 
Proceeds from sale of assets and businesses296 5,023 
Net cash flow used for investing activities(45,356)(24,412)
Cash flows from financing activities:
Payments under revolving credit facilities, net(219,000)(728,000)
Proceeds from borrowings 1,550,000 
Debt repayments (1,085,000)
Payments for debt issuance costs and early redemption fee (36,896)
Proceeds from sale of minority ownership interest in Premion 14,000 
Dividends paid(57,435)(61,110)
 Other, net(10,567)(9,151)
Net cash flow used for financing activities(287,002)(356,157)
Increase in cash10,246 135,182 
Balance of cash, beginning of period40,968 29,404 
Balance of cash, end of period$51,214 $164,586 
Supplemental cash flow information:
Cash paid for income taxes, net of refunds$146,600 $39,872 
Cash paid for interest$165,824 $174,575 
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 interestCommon
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Treasury
stock
Total Equity
Balance at June 30, 2021$15,523 $324,419 $27,941 $7,249,257 $(118,604)$(5,224,057)$2,258,956 
Net income419 — — 128,280 — — 128,280 
Other comprehensive income, net of tax— — — — 41,911 — 41,911 
Total comprehensive income170,191 
Dividends declared: $0.095 per share
— — — (21,008)— — (21,008)
Company stock 401(k) contribution— — (6,763)(5,219)— 16,173 4,191 
Stock-based awards activity— — (545)— — 498 (47)
Stock-based compensation— — 6,965 — — — 6,965 
Adjustment of redeemable noncontrolling interest to redemption value(116)— — 116 — — 116 
Other activity— — 343 — — 343 
Balance at Sept. 30, 2021$15,826 $324,419 $27,941 $7,351,426 $(76,693)$(5,207,386)$2,419,707 
Redeemable noncontrolling interestCommon
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Treasury
stock
Total
Balance at June 30, 2020$14,373 $324,419 $140,255 $6,729,896 $(140,179)$(5,379,084)$1,675,307 
Net income51 — — 132,219 — — 132,219 
Other comprehensive income, net of tax— — — — 1,092 — 1,092 
Total comprehensive income133,311 
Dividends declared: $0.07 per share
— — — (15,332)— — (15,332)
Company stock 401(k) contribution— — (21,886)— — 26,344 4,458 
Stock-based awards activity— — (652)— — 596 (56)
Stock-based compensation— — 5,010 — — — 5,010 
Adjustment of redeemable noncontrolling interest to redemption value229 — — (229)— — (229)
Other activity— — (2,933)— — — (2,933)
Balance at Sept. 30, 2020$14,653 $324,419 $119,794 $6,846,554 $(139,087)$(5,352,144)$1,799,536 
8


TEGNA Inc.
CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NON-CONTROLLING INTEREST
Unaudited, in thousands of dollars, except per share data
Nine months ended:
Redeemable noncontrolling interestCommon
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Treasury
stock
Total
Balance at Dec. 31, 2020$14,933 $324,419 $113,267 $7,075,640 $(121,076)$(5,334,155)$2,058,095 
Net income861 — — 347,524 — — 347,524 
Other comprehensive income, net of tax— — — — 44,383 — 44,383 
Total comprehensive income391,907 
Dividends declared: $0.26 per share
— — — (57,435)— — (57,435)
Company stock 401(k) contribution— — (24,437)(14,271)— 52,283 13,575 
Stock-based awards activity— — (85,054)— — 74,486 (10,568)
Stock-based compensation— — 23,137 — — — 23,137 
Adjustment of redeemable noncontrolling interest to redemption value32 — — (32)— — (32)
Other activity— — 1,028 — — — 1,028 
Balance at Sept. 30, 2021$15,826 $324,419 $27,941 $7,351,426 $(76,693)$(5,207,386)$2,419,707 
Redeemable noncontrolling interestCommon
stock
Additional
paid-in
capital
Retained
earnings
Accumulated
other
comprehensive
loss
Treasury
stock
Total
Balance at Dec. 31, 2019$ $324,419 $247,497 $6,655,088 $(142,597)$(5,494,030)$1,590,377 
Net income (loss)(433)— — 238,474 — — 238,474 
Other comprehensive income, net of tax— — — — 3,510 — 3,510 
Total comprehensive income241,984 
Dividends declared: $0.21 per share
— — — (45,922)— — (45,922)
Company stock 401(k) contribution— — (57,606)— — 70,629 13,023 
Stock-based awards activity— — (80,408)— — 71,257 (9,151)
Stock-based compensation— — 12,578 — — — 12,578 
Sale of minority ownership interest in Premion14,000 — — — — — — 
Adjustment of redeemable noncontrolling interest to redemption value1,086 — — (1,086)— — (1,086)
Other activity— — (2,267)— — — (2,267)
Balance at Sept. 30, 2020$14,653 $324,419 $119,794 $6,846,554 $(139,087)$(5,352,144)$1,799,536 
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, 2020.

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. The novel coronavirus (COVID-19) pandemic has resulted, and will continue to result, in significant economic disruption and will likely continue to adversely affect our business. The impact of COVID-19 (including variants) and the extent of its adverse impact on our financial and operating results will be dictated by the length of time that the pandemic continues to affect our advertising customers.

We use the best information available in developing significant estimates inherent in our financial statements, including potential impacts from the COVID-19 pandemic. 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 (loss) income in unconsolidated investments, net” in the Consolidated Statements of Income.

We operate one operating and reportable segment, which primarily consists of our 64 television stations and two radio stations operating in 51 markets, providing 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 2021: We did not adopt any new accounting guidance in 2021 that had a material impact on our consolidated financial statements or disclosures.

New accounting guidance not yet adopted: There is currently no 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 September 30, 2021, our allowance for doubtful accounts was $6.2 million as compared to $7.0 million as of December 31, 2020.

Available-for-sale investment: We hold a debt security investment issued by MadHive, Inc. (MadHive), that we classify as an available-for-sale investment. Under the terms of our investment agreement, our debt investment may convert into an equity investment either automatically or at our election based on the occurrence of certain specified events. This investment is carried at fair value and is included within the “Investments and other assets” line item on our Condensed Consolidated Balance Sheet. Unrealized gains/losses on this investment are included within “Accumulated other comprehensive loss” on the Condensed Consolidated Balance Sheet. Gains and losses will be recognized in our Consolidated Statements of Income when realized. See Note 3 for additional information.

Redeemable Noncontrolling interest: Our Premion business operates an advertising network for over-the-top (OTT) streaming and connected television platforms. In March 2020, we sold a minority interest in Premion to an affiliate of Gray Television (Gray) and entered into a 3 year commercial reselling agreement with the affiliate. Gray’s investment allows it to sell its interest to Premion if there is a change in control of TEGNA or if the existing commercial agreement terminates. Since redemption of the minority ownership interest is outside our control, Gray’s equity interest is presented outside of the Equity section on the Condensed Consolidated Balance Sheet in the caption “Redeemable noncontrolling interest.”

10


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) 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; 2) advertising & marketing services revenues, which include local and national non-political television advertising, digital marketing services (including Premion), advertising on the stations’ websites, tablet and mobile products, and OTT apps; 3) political advertising revenues, which are driven by even year election cycles at the local and national level (e.g. 2020, 2018, etc.) and particularly in the second half of those years; and 4) other services, such as production of programming, tower rentals, and distribution of our local news content.

Revenue earned by these sources in the third quarter and first nine months of 2021 and 2020 are shown below (amounts in thousands):
Quarter ended Sept. 30,Nine months ended Sept. 30,
2021202020212020
Subscription$368,672 $316,677 $1,130,490 $972,954 
Advertising & Marketing Services364,234 298,605 1,027,957 822,841 
Political15,010 116,494 34,019 181,425 
Other8,571 6,613 23,980 22,985 
Total revenues$756,487 $738,389 $2,216,446 $2,000,205 

NOTE 2 – Goodwill and other intangible assets
The following table displays goodwill, indefinite-lived intangible assets, and amortizable intangible assets as of September 30, 2021 and December 31, 2020 (in thousands):
Sept. 30, 2021Dec. 31, 2020
GrossAccumulated AmortizationGrossAccumulated Amortization
Goodwill$2,981,587 $ $2,968,693 $ 
Indefinite-lived intangibles:
Television and radio station FCC broadcast licenses2,123,898 2,123,898 
Amortizable intangible assets:
Retransmission agreements235,215 (161,061)235,215 (138,928)
Network affiliation agreements309,503 (91,070)309,503 (72,694)
Other71,465 (30,758)70,610 (23,960)
Total indefinite-lived and amortizable intangible assets$2,740,081 $(282,889)$2,739,226 $(235,582)

Our retransmission agreements and network affiliation agreements are amortized on a straight-line basis over their estimated useful lives. Other intangibles primarily include distribution agreements from our multicast networks acquisition, which are also amortized on a straight-line basis over their useful lives.

On January 27, 2021, we acquired Locked On Podcast Network LLC for $13.3 million, which consisted of a base purchase price of $13.8 million and a working capital adjustment of $0.5 million. Locked On produces daily podcasts for every team across the four major professional sports leagues, as well as for major college sports teams. In connection with this acquisition, we recorded goodwill and trade name assets of $12.9 million and $0.9 million, respectively. The goodwill is calculated as the excess of the purchase price over the net fair value of the identifiable assets acquired and liabilities assumed, and represents the future economic benefits expected to arise from the acquisition that do not qualify for separate recognition, including assembled workforce, as well as future synergies that we expect to generate. The goodwill recognized is deductible for tax purposes.

11


Interim impairment assessment

We review our goodwill and intangible assets for impairment at least annually and also when events or changes in circumstances occur that indicate the fair value may be below its carrying amount. As discussed in our 2020 Form 10-K, after completing our annual impairment test in the fourth quarter of 2020, we had one television station FCC license and one radio station FCC license with a combined carrying value of $67.2 million and individual impairment headroom of less than 5%. As a result, these two FCC licenses are deemed to be heightened risk of future impairment. Given the ongoing COVID-19 impacts on our AMS revenue and operating cash flows, we conducted impairment assessments of these two FCC licenses at the end of the third quarter of 2021 to evaluate whether circumstances occurred that indicate that the fair value may be below the carrying amount.

In performing these assessments, we analyzed factors that impact the fair value determination of FCC license assets. This included reviewing the trends in U.S. gross domestic product, the stock market, unemployment trends, discount rates and individual station performance. Based on the analysis performed, we concluded that no triggering events had occurred that would cause us to perform an interim impairment test for these two FCC licenses. However, a sustained economic decline, including one resulting from the COVID-19 pandemic, could result in future non-cash impairment charges of our FCC licenses, and any related impairment could have a material adverse impact on our results of operations.

NOTE 3 – Investments and other assets

Our investments and other assets consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands):
Sept. 30, 2021Dec. 31, 2020
Available-for-sale debt security $57,354 $3,000 
Cash value life insurance52,861 52,883 
Equity method investments25,504 32,067 
Other equity investments19,021 20,271 
Deferred debt issuance costs6,706 9,378 
Other long-term assets23,427 18,620 
Total$184,873 $136,219 

Available-for-sale debt security: Available-for-sale debt securities are required to be carried at their fair value, with unrealized gains and losses (net of income taxes) that are considered temporary in nature recorded in “Accumulated other comprehensive loss” on the Condensed Consolidated Balance Sheet. In the third quarter of 2021, we recorded an unrealized gain of $54.4 million due to the increase in the fair value of the debt security issued by MadHive that we hold. This available-for-sale debt security includes features that allow us to convert investment into equity ownership upon the occurrence of certain events. The increase in the value of our investment is due to, and calculated based on, the estimated increase in the underlying equity of the investee. The unrealized gain has been recorded in “Accumulated other comprehensive loss” on the Condensed Consolidated Balance Sheet.

Cash value life insurance: We are the beneficiary of life insurance policies on the lives of certain employees/retirees, which are recorded at their cash surrender value as determined by the insurance carrier. These policies are utilized as a partial funding source for deferred compensation and other non-qualified employee retirement plans. Gains and losses on these investments are included in “Other non-operating items, net” within our Consolidated Statement of Income and were not material for all periods presented.

Other equity investments: Represents investments in non-public businesses that do not have readily determinable pricing, and for which we do not have control or do not exert significant influence. These investments are recorded at cost less impairments, if any, plus or minus changes in observable prices for those investments. In the third quarter of 2021, we recognized a $1.9 million gain on one of these investments due to an observable price increase in the fair value of the investment. Additionally, in the first quarter of 2021, we recorded a $1.9 million impairment charge, due to the decline in the fair value of a different investment. Both the gain and impairment charge were recorded in “Other non-operating items, net” within our Consolidated Statement of Income. No gains or losses were recorded on these investments in the first nine months of 2020.

Deferred debt issuance costs: These costs consist of amounts paid to lenders related to our revolving credit facility. Debt issuance costs paid for our term debt and unsecured notes are accounted for as a reduction in the debt obligation.

12


NOTE 4 – Long-term debt
Our long-term debt is summarized below (in thousands):
Sept. 30, 2021Dec. 31, 2020
Borrowings under revolving credit agreement expiring August 2024$136,000 $355,000 
Unsecured notes bearing fixed rate interest at 5.500% due September 2024
137,000 137,000 
Unsecured notes bearing fixed rate interest at 4.750% due March 2026
550,000 550,000 
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 
Unsecured notes bearing fixed rate interest at 4.625% due March 2028
1,000,000 1,000,000 
Unsecured notes bearing fixed rate interest at 5.00% due September 2029
1,100,000 1,100,000 
Total principal long-term debt3,363,000 3,582,000 
Debt issuance costs(33,271)(36,595)
Unamortized premiums and discounts, net7,149 7,815 
Total long-term debt$3,336,878 $3,553,220 
As of September 30, 2021, cash and cash equivalents totaled $51.2 million and we had unused borrowing capacity of $1.35 billion under our $1.51 billion revolving credit facility, which expires in August 2024. We were in compliance with all covenants, including the leverage ratio (our one financial covenant) contained in our debt agreements and revolving credit facility. We believe, based on our current financial forecasts and trends, that we will remain compliant with all covenants for the foreseeable future.

NOTE 5 – Retirement plans

We have various defined benefit 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, including both current and non-current liabilities, as of September 30, 2021, were $74.2 million, of which $7.8 million is recorded as a current obligation within accrued liabilities on the Condensed Consolidated Balance Sheet.

Pension costs (income), which primarily include costs for the qualified TRP and the non-qualified SERP, are presented in the following table (in thousands):
Quarter ended Sept. 30,Nine months ended Sept. 30,
2021202020212020
Service cost-benefits earned during the period$1 $1 $2 $5 
Interest cost on benefit obligation3,969 4,868 11,907 14,605 
Expected return on plan assets(8,670)(7,765)(26,010)(23,294)
Amortization of prior service cost23 23 68 68 
Amortization of actuarial loss1,223 1,541 3,669 4,622 
Pension payment timing related charge946  946  
Income from company-sponsored retirement plans$(2,508)$(1,332)$(9,418)$(3,994)

Benefits no longer accrue for substantially all TRP and SERP participants as a result of amendments to the plans in past years, and as such we no longer incur a significant amount of the service cost component of pension expense. All other components of our pension expense presented above are included within the “Other non-operating items, net” line item of the Consolidated Statements of Income.

During the nine months ended September 30, 2021 and 2020, we did not make any cash contributions to the TRP. We made benefit payments to participants of the SERP of $5.3 million and $4.1 million during the nine months ended September 30, 2021 and 2020, respectively. Based on actuarial projections and funding levels, we do not expect to make any cash payments to the TRP in 2021 (as none are required based on our current funding levels). We expect to make additional cash payments of $1.6 million to our SERP participants during the remainder of 2021.

13


In the third quarter of 2021, we accelerated the recognition of previously deferred pension costs as a result of lump sum payments made for the SERP, which resulted in a $0.9 million charge which was reclassified from accumulated other comprehensive loss into net periodic benefit cost.
NOTE 6 – Accumulated other comprehensive loss

The following table summarizes the components of, and the changes in, Accumulated Other Comprehensive Loss (AOCL), net of tax (in thousands):
Retirement PlansForeign Currency TranslationAvailable-For-Sale InvestmentTotal
Quarters Ended:
Balance at June 30, 2021$(119,065)$461 $ $(118,604)
Other comprehensive income before reclassifications (39)40,293 40,254 
Amounts reclassified from AOCL1,657   1,657 
Total other comprehensive income1,657 (39)40,293 41,911 
Balance at Sept. 30, 2021$(117,408)$422 $40,293 $(76,693)
Balance at June 30, 2020$(140,076)$(103)$ $(140,179)
Other comprehensive loss before reclassifications (69) (69)
Amounts reclassified from AOCL1,161   1,161 
Total other comprehensive income1,161 (69) 1,092 
Balance at Sept. 30, 2020$(138,915)$(172)$ $(139,087)
Retirement PlansForeign Currency TranslationAvailable-For-Sale InvestmentTotal
Nine months ended:
Balance at Dec. 31, 2020$(120,979)$(97)$ $(121,076)
Other comprehensive income before reclassifications 519 40,293 40,812 
Amounts reclassified from AOCL3,571   3,571 
Total other comprehensive income3,571 519 40,293 44,383 
Balance at Sept. 30, 2021$(117,408)$422 $40,293 $(76,693)
Balance at Dec. 31, 2019$(142,398)$(199)$ $(142,597)
Other comprehensive income before reclassifications 27  27 
Amounts reclassified from AOCL3,483   3,483 
Total other comprehensive income3,483 27  3,510