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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, 2022
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, 2022 was 223,293,327.



INDEX TO TEGNA INC.
September 30, 2022 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, 2022Dec. 31, 2021
ASSETS
Current assets
Cash and cash equivalents$376,641 $56,989 
Accounts receivable, net of allowances of $5,154 and $4,371, respectively
589,510 642,280 
Other receivables9,447 15,496 
Syndicated programming rights55,759 53,100 
Prepaid expenses and other current assets39,694 19,724 
Total current assets1,071,051 787,589 
Property and equipment
Cost1,055,616 1,053,851 
Less accumulated depreciation(599,102)(586,656)
Net property and equipment456,514 467,195 
Intangible and other assets
Goodwill2,981,587 2,981,587 
Indefinite-lived and amortizable intangible assets, less accumulated amortization of $333,157 and $298,593, respectively
2,396,536 2,441,488 
Right-of-use assets for operating leases81,385 87,279 
Investments and other assets137,059 152,508 
Total intangible and other assets5,596,567 5,662,862 
Total assets$7,124,132 $6,917,646 
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, 2022Dec. 31, 2021
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current liabilities
Accounts payable$83,813 $72,996 
Accrued liabilities
   Compensation53,736 55,179 
   Interest12,441 45,905 
   Contracts payable for programming rights131,454 98,534 
   Other109,598 91,098 
Income taxes payable3,989 11,420 
Total current liabilities395,031 375,132 
Noncurrent liabilities
Deferred income tax liability555,455 548,374 
Long-term debt3,068,446 3,231,970 
Pension liabilities53,073 58,063 
Operating lease liabilities82,387 88,970 
Other noncurrent liabilities74,393 79,102 
Total noncurrent liabilities3,833,754 4,006,479 
Total liabilities4,228,785 4,381,611 
Commitments and contingent liabilities (see Note 9)
Redeemable noncontrolling interest (see Note 1)17,092 16,129 
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 27,941 
Retained earnings7,704,358 7,459,380 
Accumulated other comprehensive loss(110,262)(97,216)
Less treasury stock at cost, 101,191,494 shares and 103,012,455 shares, respectively
(5,068,201)(5,194,618)
Total equity2,878,255 2,519,906 
Total liabilities, redeemable noncontrolling interest and equity$7,124,132 $6,917,646 
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,
2022202120222021
Revenues$803,111 $756,487 $2,362,115 $2,216,446 
Operating expenses:
Cost of revenues1
428,891 399,751 1,260,576 1,191,561 
Business units - Selling, general and administrative expenses
98,582 100,425 300,136 286,700 
Corporate - General and administrative expenses
13,367 11,891 48,299 51,944 
Depreciation
15,219 16,792 46,058 48,526 
Amortization of intangible assets
14,953 15,774 44,952 47,307 
Spectrum repacking reimbursements and other, net
(159)504 (322)(2,394)
Total570,853 545,137 1,699,699 1,623,644 
Operating income232,258 211,350 662,416 592,802 
Non-operating (expense) income:
Equity loss in unconsolidated investments, net (178)(1,790)(4,225)(5,716)
Interest expense
(43,406)(46,477)(129,976)(139,571)
Other non-operating items, net1,310 2,486 16,764 4,340 
Total(42,274)(45,781)(117,437)(140,947)
Income before income taxes189,984 165,569 544,979 451,855 
Provision for income taxes43,827 36,870 132,595 103,470 
Net Income
146,157 128,699 412,384 348,385 
Net income attributable to redeemable noncontrolling interest(92)(419)(516)(861)
Net income attributable to TEGNA Inc.$146,065 $128,280 $411,868 $347,524 
Earnings per share:
Basic $0.65 $0.58 $1.84 $1.57 
Diluted $0.65 $0.58 $1.83 $1.56 
Weighted average number of common shares outstanding:
Basic shares223,968 221,805 223,456 221,314 
Diluted shares224,921 222,799 224,221 222,172 
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,
2022202120222021
Net income$146,157 $128,699 $412,384 $348,385 
Other comprehensive income, before tax:
Foreign currency translation adjustments (53)142 698 
Pension and other post retirement benefit items
Recognition of previously deferred post-retirement benefit plan costs1,031 1,290 3,092 3,869 
Pension payment timing related charge 946  946 
Pension and other postretirement benefit items1,031 2,236 3,092 4,815 
Unrealized gain on available-for-sale investment during the period 54,354  54,354 
Realized gain on available-for-sale investment during the period  (20,800) 
Other comprehensive income (loss), before tax1,031 56,537 (17,566)59,867 
Income tax effect related to components of other comprehensive income(265)(14,626)4,520 (15,484)
Other comprehensive income (loss), net of tax766 41,911 (13,046)44,383 
Comprehensive income146,923 170,610 399,338 392,768 
Comprehensive income attributable to redeemable noncontrolling interest(92)(419)(516)(861)
Comprehensive income attributable to TEGNA Inc.$146,831 $170,191 $398,822 $391,907 
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,
20222021
Cash flows from operating activities:
Net income$412,384 $348,385 
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation and amortization91,010 95,833 
Stock-based compensation23,625 23,137 
     Company stock 401(k) contribution14,343 13,575 
Gains on assets, net(18,308) 
Equity losses from unconsolidated investments, net4,225 5,716 
Pension contributions including income, net of expense(1,697)(14,821)
Change in other assets and liabilities, net of acquisitions:
Decrease (increase) in trade receivables51,986 (49,687)
Increase (decrease) in accounts payable10,817 (11,716)
Decrease in interest and taxes payable, net(23,104)(76,372)
Increase in deferred revenue22,181 1,784 
Change in other assets and liabilities, net13,243 6,770 
Net cash flow from operating activities600,705 342,604 
Cash flows from investing activities:
Purchase of property and equipment(35,527)(39,418)
Reimbursements from spectrum repacking322 5,030 
Payments for acquisitions of businesses (13,335)
Purchases of investments(4,715)(1,023)
Proceeds from investments3,451 3,094 
Proceeds from sale of assets407 296 
Net cash flow used for investing activities(36,062)(45,356)
Cash flows from financing activities:
Payments under revolving credit facilities, net(166,000)(219,000)
Dividends paid(63,533)(57,435)
 Other, net(15,458)(10,567)
Net cash flow used for financing activities(244,991)(287,002)
Increase in cash319,652 10,246 
Balance of cash, beginning of period56,989 40,968 
Balance of cash, end of period$376,641 $51,214 
Supplemental cash flow information:
Cash paid for income taxes, net of refunds$124,206 $146,600 
Cash paid for interest$158,293 $165,824 
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, 2022$16,765 $324,419 $27,941 $7,583,436 $(111,028)$(5,083,045)$2,741,723 
Net income92 — — 146,065 — — 146,065 
Other comprehensive income, net of tax— — — — 766 — 766 
Total comprehensive income146,831 
Dividends declared: $0.095 per share
— — — (21,203)— — (21,203)
Company stock 401(k) contribution— — (6,328)(3,486)— 14,229 4,415 
Stock-based awards activity— — (397)(219)— 615 (1)
Stock-based compensation— — 6,416 — — — 6,416 
Adjustment of redeemable noncontrolling interest to redemption value235 — — (235)— — (235)
Other activity— — 309 — — — 309 
Balance at Sept. 30, 2022$17,092 $324,419 $27,941 $7,704,358 $(110,262)$(5,068,201)$2,878,255 
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 
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, 2021$16,129 $324,419 $27,941 $7,459,380 $(97,216)$(5,194,618)$2,519,906 
Net income516 — — 411,868 — — 411,868 
Other comprehensive income, net of tax— — — — (13,046)— (13,046)
Total comprehensive income398,822 
Dividends declared: $0.285 per share
— — — (63,533)— — (63,533)
Company stock 401(k) contribution— — (12,655)(19,571)— 46,569 14,343 
Stock-based awards activity— — (11,967)(83,339)— 79,848 (15,458)
Stock-based compensation— — 23,625 — — — 23,625 
Adjustment of redeemable noncontrolling interest to redemption value447 — — (447)— — (447)
Other activity— — 997 — — — 997 
Balance at Sept. 30, 2022$17,092 $324,419 $27,941 $7,704,358 $(110,262)$(5,068,201)$2,878,255 
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 
The accompanying notes are an integral part of these condensed consolidated financial statements.

9


TEGNA Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 – Basis of presentation, merger agreement and 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, 2021.

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. We use the best information available in developing significant estimates inherent 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, 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 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.

Merger Agreement: On February 22, 2022, we entered into an Agreement and Plan of Merger (as amended, the Merger Agreement), with Teton Parent Corp., a newly formed Delaware corporation (Parent), Teton Merger Corp., a newly formed Delaware corporation and an indirect wholly owned subsidiary of Parent (Merger Sub), and solely for purposes of certain provisions specified therein, other subsidiaries of Parent, certain affiliates of Standard General L.P., a Delaware limited partnership (Standard General) and CMG Media Corporation, a Delaware corporation (CMG), and certain of its subsidiaries. Parent, Merger Sub, the other subsidiaries of Parent, those affiliates of Standard General, CMG and those subsidiaries of CMG, are collectively, referred to as the “Parent Restructuring Entities.”

The Merger Agreement provides, among other things and subject to the terms and conditions set forth therein, that Merger Sub will be merged with and into TEGNA (the Merger), with TEGNA continuing as the surviving corporation and as an indirect wholly owned subsidiary of Parent. The Merger Agreement provides that each share of common stock, par value $1.00 per share, TEGNA (the Common Stock) outstanding immediately prior to the effective time of the Merger (the Effective Time), other than certain excluded shares, will at the Effective Time automatically be converted into the right to receive (i) $24.00 per share of Common Stock in cash, without interest, plus (ii) additional amounts in cash, without interest, if the Merger does not close within a certain period of time after the date of the Merger Agreement. TEGNA shareholders will receive additional cash consideration in the form of a “ticking fee” of $0.00167 per share per day (or $0.05 per month) if the closing occurs between the 9- and 12-month anniversary of signing, increasing to $0.0025 per share per day (or $0.075 per month) if the closing occurs between the 12- and 13-month anniversary of signing, $0.00333 per share per day (or $0.10 per month) if the closing occurs between the 13- and 14-month anniversary of signing, and $0.00417 per share per day (or $0.125 per month) if the closing occurs on or after the 14-month anniversary of signing.

The Merger Agreement contains certain termination rights and provides that, upon termination of the Merger Agreement under certain specified circumstances, TEGNA will be required to pay Parent a termination fee of $163.0 million, and Parent will be required to pay TEGNA a termination fee of either $136.0 million or $272.0 million.

TEGNA has made customary representations, warranties and covenants in the Merger Agreement. If the Merger is consummated, the Common Stock will be delisted from the New York Stock Exchange and deregistered under the Securities Exchange Act of 1934.

On March 10, 2022, TEGNA, Parent, Merger Sub, and, solely for purposes of certain provisions specified therein, the other Parent Restructuring Entities, entered into an amendment to the Merger Agreement (the Amendment). The Amendment provides, among other things and subject to the terms and conditions set forth therein, that certain regulatory efforts covenants will apply with respect to certain station transfers from Parent or an affiliate of Parent to CMG or an affiliate of CMG that are contemplated to be consummated as of immediately following the Effective Time.


10


On May 17, 2022 the stockholders of TEGNA voted to adopt the Merger Agreement.

The Merger is subject to the satisfaction of customary closing conditions, including receipt of applicable regulatory approvals, and is still expected to close in the second half of 2022.

Accounting guidance adopted in 2022: We did not adopt any new accounting guidance in 2022 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 (or declines), unemployment and demand for our products and services. 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, 2022, our allowance for doubtful accounts was $5.2 million as compared to $4.4 million as of December 31, 2021.

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.”

Treasury Stock: We account for treasury stock under the cost method. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in-capital (APIC) in our Condensed Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a component of APIC to the extent that there are previously recorded gains to offset the losses. If there are no treasury stock gains in APIC, the losses upon re-issuance of treasury stock are recorded as a reduction of retained earnings in our Condensed Consolidated Balance Sheets.

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. 2022, 2020 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 2022 and 2021 are shown below (amounts in thousands):
Quarter ended Sept. 30,Nine months ended Sept. 30,
2022202120222021
Subscription$377,368 $368,672 $1,158,101 $1,130,490 
Advertising & Marketing Services320,764 364,234 1,010,490 1,027,957 
Political92,904 15,010 161,727 34,019 
Other12,075 8,571 31,797 23,980 
Total revenues$803,111 $756,487 $2,362,115 $2,216,446 

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NOTE 2 – Goodwill and other intangible assets
The following table displays goodwill, indefinite-lived intangible assets, and amortizable intangible assets as of September 30, 2022 and December 31, 2021 (in thousands):
Sept. 30, 2022Dec. 31, 2021
GrossAccumulated AmortizationGrossAccumulated Amortization
Goodwill$2,981,587 $ $2,981,587 $ 
Indefinite-lived intangibles:
Television and radio station FCC broadcast licenses2,123,898 — 2,123,898 — 
Amortizable intangible assets:
Retransmission agreements224,827 (178,149)235,215 (168,439)
Network affiliation agreements309,503 (115,547)309,503 (97,195)
Other71,465 (39,461)71,465 (32,959)
Total indefinite-lived and amortizable intangible assets$2,729,693 $(333,157)$2,740,081 $(298,593)

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. In the third quarter of 2022, gross retransmission agreement intangible assets and associated accumulated amortization decreased by $10.4 million due to certain retransmission intangible assets reaching the end of their useful lives.

NOTE 3 – Investments and other assets

Our investments and other assets consisted of the following as of September 30, 2022 and December 31, 2021 (in thousands):
Sept. 30, 2022Dec. 31, 2021
Cash value insurance$48,487 $53,189 
Available-for-sale debt security 23,800 
Equity method investments16,973 21,986 
Other equity investments20,158 20,331 
Deferred debt issuance costs3,133 5,805 
Long-term contract assets18,981  
Other long-term assets29,327 27,397 
Total$137,059 $152,508 

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.

Available-for-sale debt security: We previously held a debt security investment issued by MadHive, Inc. (MadHive), that we classified as an available-for-sale investment. 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 first quarter of 2022, we amended the terms of the debt security, which became effective on January 3, 2022, in parallel with an amendment and extension of our commercial agreements with MadHive. The amendments modified several items, including the conversion rights as well as the maturity date of the note. In exchange for the convertible debt modifications, we received favorable terms in our renewed commercial agreements with MadHive. As a result of these amendments, in the first quarter of 2022 we recognized a previously unrecognized gain of $20.8 million. The gain was recorded in “Other non-operating items, net” within our Consolidated Statement of Income. The debt matured in June 2022 at which time the principal balance of $3.0 million plus accrued interest was paid to
12


us. The $3.0 million principal balance was classified as “Proceeds from investments” within our Consolidated Statement of Cash Flow”. See Note 9 for additional information regarding our related party transactions with MadHive.

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 first quarter of 2022, we recorded a $2.5 million impairment charge, in “Other non-operating items, net” within our Consolidated Statement of Income, due to the decline in the fair value of one of our investments.

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.

Long-term contract assets: These amounts primarily consist of an asset related to a long-term services agreement for IT security and an asset representing the long-term portion of a contract asset that was recognized as a result of the $20.8 million gain discussed above related to favorable rates obtained on recent commercial agreements with Madhive. This gain resulted in a contract asset which was recognized in January 2022 and is being amortized over two years (through December 2023). See Note 9 for additional details.
NOTE 4 – Long-term debt
Our long-term debt is summarized below (in thousands):
Sept. 30, 2022Dec. 31, 2021
Borrowings under revolving credit agreement expiring August 2024$ $166,000 
Unsecured notes bearing fixed rate interest at 4.75% 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 debt3,090,000 3,256,000 
Debt issuance costs(28,072)(31,378)
Unamortized premiums6,518 7,348 
Total long-term debt$3,068,446 $3,231,970 
As of September 30, 2022, cash and cash equivalents totaled $376.6 million and we had unused borrowing capacity of $1.49 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.

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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 primarily 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, 2022, were $59.1 million, of which $6.0 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,
2022202120222021
Service cost-benefits earned during the period$ $1 $ $2 
Interest cost on benefit obligation4,270 3,969 12,811 11,907 
Expected return on plan assets(4,876)(8,670)(14,627)(26,010)
Amortization of prior service (credit) cost(119)23 (361)68 
Amortization of actuarial loss1,150 1,223 3,452 3,669 
Pension payment timing related charge 946  946 
Expense (income) from company-sponsored retirement plans$425 $(2,508)$1,275 $(9,418)

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, 2022 and 2021, we did not make any cash contributions to the TRP. We made benefit payments to participants of the SERP of $2.9 million and $5.3 million during the nine months ended September 30, 2022 and 2021, respectively. Based on actuarial projections and funding levels, we do not expect to make any cash payments to the TRP in 2022 (as none are required based on our current funding levels). We expect to make additional cash payments of $2.5 million to our SERP participants during the remainder of 2022.
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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, 2022$(111,560)$532 $ $(111,028)
Amounts reclassified from AOCL766   766 
Total other comprehensive income766   766 
Balance at Sept. 30, 2022$(110,794)$532 $ $(110,262)
Balance at June 30, 2021$(119,065)$461 $ $(118,604)
Other comprehensive loss before reclassifications (39)40,293 40,254 
Amounts reclassified from AOCL1,657   1,657 
Total other comprehensive income1,657 (39)40,293 41,911 
Balance at Sept. 30, 2021$(117,408)$422 $40,293 $(76,693)
Retirement PlansForeign Currency TranslationAvailable-For-Sale InvestmentTotal
Nine months ended:
Balance at Dec. 31, 2021$(113,090)$455 $15,419 $(97,216)
Other comprehensive income before reclassifications 77  77 
Amounts reclassified from AOCL2,296  (15,419)(13,123)
Total other comprehensive income (loss)2,296