falsedesktopTGNA2020-09-30000003989920000042{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Delaware\t\t\t16-0442930\n(State or other jurisdiction of incorporation or organization)\t\t\t(I.R.S. Employer Identification No.)\n8350 Broad Street Suite 2000\tTysons\tVirginia\t22102-5151\n(Address of principal executive offices)\t\t\t(Zip Code)\n", "q10k_tbl_1": "Large accelerated filer\t☒\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_2": "Item No.\t\tPage\n\tPART I. FINANCIAL INFORMATION\t\n1.\tFinancial Statements\t\n\tCondensed Consolidated Balance Sheets as of September 30 2020 and December 31 2019\t3\n\tConsolidated Statements of Income for the Quarters and Nine Months Ended September 30 2020 and 2019\t5\n\tConsolidated Statements of Comprehensive Income for the Quarters and Nine Months Ended September 30 2020 and 2019\t6\n\tCondensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30 2020 and 2019\t7\n\tConsolidated Statements of Equity and Redeemable Noncontrolling Interests for the Quarters and Nine Months Ended September 30 2020 and 2019\t8\n\tNotes to Condensed Consolidated Financial Statements\t10\n2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t21\n3.\tQuantitative and Qualitative Disclosures about Market Risk\t35\n4.\tControls and Procedures\t36\n\tPART II. OTHER INFORMATION\t\n1.\tLegal Proceedings\t37\n1A.\tRisk Factors\t37\n2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t37\n3.\tDefaults Upon Senior Securities\t37\n4.\tMine Safety Disclosures\t37\n5.\tOther Information\t37\n6.\tExhibits\t38\nSIGNATURE\t\t39\n", "q10k_tbl_3": "\tSept. 30 2020\tDec. 31 2019\nASSETS\t\t\nCurrent assets\t\t\nCash and cash equivalents\t164586\t29404\nAccounts receivable net of allowances of $8427 and $3723 respectively\t503000\t581765\nOther receivables\t14093\t19640\nSyndicated programming rights\t60378\t49616\nPrepaid expenses and other current assets\t21224\t26899\nTotal current assets\t763281\t707324\nProperty and equipment\t\t\nCost\t1011744\t997736\nLess accumulated depreciation\t(541197)\t(512015)\nNet property and equipment\t470547\t485721\nIntangible and other assets\t\t\nGoodwill\t2968693\t2950587\nIndefinite-lived and amortizable intangible assets less accumulated amortization of $218468 and $168452 respectively\t2501027\t2561614\nRight-of-use assets for operating leases\t98242\t103461\nInvestments and other assets\t143206\t145269\nTotal intangible and other assets\t5711168\t5760931\nTotal assets\t6944996\t6953976\n", "q10k_tbl_4": "\tSept. 30 2020\tDec. 31 2019\nLIABILITIES REDEEMABLE NONCONTROLLING INTEREST AND EQUITY\t\t\nCurrent liabilities\t\t\nAccounts payable\t61441\t51894\nAccrued liabilities\t\t\nCompensation\t44744\t63876\nInterest\t25699\t46013\nContracts payable for programming rights\t145796\t119872\nOther\t98438\t60983\nDividends payable\t0\t15188\nIncome taxes payable\t23226\t3332\nTotal current liabilities\t399344\t361158\nNoncurrent liabilities\t\t\nIncome taxes\t7671\t7490\nDeferred income tax liability\t524974\t515621\nLong-term debt\t3906196\t4179245\nPension liabilities\t114281\t127146\nOperating lease liabilities\t100660\t105902\nOther noncurrent liabilities\t77681\t67037\nTotal noncurrent liabilities\t4731463\t5002441\nTotal liabilities\t5130807\t5363599\nCommitments and contingent liabilities (see Note 11)\t\t\nRedeemable noncontrolling interest (see Note 11)\t14653\t0\nShareholders' equity\t\t\nCommon stock of $1 par value per share 800000000 shares authorized 324418632 shares issued\t324419\t324419\nAdditional paid-in capital\t119794\t247497\nRetained earnings\t6846554\t6655088\nAccumulated other comprehensive loss\t(139087)\t(142597)\nLess treasury stock at cost 105271009 shares and 106955082 shares respectively\t(5352144)\t(5494030)\nTotal equity\t1799536\t1590377\nTotal liabilities redeemable noncontrolling interest and equity\t6944996\t6953976\n", "q10k_tbl_5": "\tQuarter ended Sept. 30\t\tNine months ended Sept. 30\t\n\t2020\t2019\t2020\t2019\nRevenues\t738389\t551857\t2000205\t1605542\nOperating expenses:\t\t\t\t\nCost of revenues1\t379185\t306474\t1103920\t873078\nBusiness units - Selling general and administrative expenses\t89943\t78439\t267919\t223845\nCorporate - General and administrative expenses\t11263\t29792\t61289\t60363\nDepreciation\t16086\t15381\t49697\t44831\nAmortization of intangible assets\t17113\t15018\t50577\t32530\nSpectrum repacking reimbursements and other net\t(2902)\t(80)\t(10533)\t(11399)\nTotal\t510688\t445024\t1522869\t1223248\nOperating income\t227701\t106833\t477336\t382294\nNon-operating income (expense):\t\t\t\t\nEquity (loss) income in unconsolidated investments net\t(2529)\t(491)\t8407\t10922\nInterest expense\t(51896)\t(52454)\t(160733)\t(145166)\nOther non-operating items net\t961\t(463)\t(17270)\t6962\nTotal\t(53464)\t(53408)\t(169596)\t(127282)\nIncome before income taxes\t174237\t53425\t307740\t255012\nProvision for income taxes\t41967\t5079\t69699\t52732\nNet Income\t132270\t48346\t238041\t202280\nNet (income) loss attributable to redeemable noncontrolling interest\t(51)\t0\t433\t0\nNet income attributable to TEGNA Inc.\t132219\t48346\t238474\t202280\nNet income per share:\t\t\t\t\nBasic\t0.60\t0.22\t1.08\t0.93\nDiluted\t0.60\t0.22\t1.08\t0.93\nWeighted average number of common shares outstanding:\t\t\t\t\nBasic shares\t219579\t217315\t218997\t217040\nDiluted shares\t219977\t218310\t219423\t217808\n1 Cost of revenues exclude charges for depreciation and amortization expense which are shown separately above.\t\t\t\t\n", "q10k_tbl_6": "\tQuarter ended Sept. 30\t\tNine months ended Sept. 30\t\n\t2020\t2019\t2020\t2019\nNet income\t132270\t48346\t238041\t202280\nOther comprehensive income before tax:\t\t\t\t\nForeign currency translation adjustments\t(93)\t(318)\t37\t(775)\nRecognition of previously deferred post-retirement benefit plan costs\t1551\t1431\t4653\t4293\nPension lump-sum payment charges\t0\t0\t0\t686\nOther comprehensive income before tax\t1458\t1113\t4690\t4204\nIncome tax effect related to components of other comprehensive income\t(366)\t(278)\t(1180)\t(1052)\nOther comprehensive income net of tax\t1092\t835\t3510\t3152\nComprehensive income\t133362\t49181\t241551\t205432\nComprehensive (income) loss attributable to redeemable noncontrolling interest\t(51)\t0\t433\t0\nComprehensive income attributable to TEGNA Inc.\t133311\t49181\t241984\t205432\n", "q10k_tbl_7": "\tNine months ended Sept. 30\t\n\t2020\t2019\nCash flows from operating activities:\t\t\nNet income\t238041\t202280\nAdjustments to reconcile net income to net cash flow from operating activities:\t\t\nDepreciation and amortization\t100274\t77361\nStock-based compensation\t12578\t13887\nCompany stock 401(k) contribution\t13023\t6486\nGains on sales of assets\t0\t(11728)\nEquity income from unconsolidated investments net\t(8407)\t(10922)\nPension contributions net of expense\t(8144)\t(5543)\nChange in other assets and liabilities net of acquisitions:\t\t\nDecrease (increase) in trade receivables\t73838\t(24708)\nIncrease (decrease) in accounts payable\t10636\t(15950)\nIncrease (decrease) in interest and taxes payable\t13793\t(1815)\nIncrease in deferred revenue\t27706\t1027\nChange in other assets and liabilities net\t42413\t(15790)\nNet cash flow from operating activities\t515751\t214585\nCash flows from investing activities:\t\t\nPurchase of property and equipment\t(30583)\t(51231)\nReimbursements from spectrum repacking\t12670\t13975\nPayments for acquisitions of businesses and other assets net of cash acquired\t(15841)\t(1507483)\nPayments for investments\t(709)\t(4041)\nProceeds from investments\t5028\t4020\nProceeds from sale of assets and businesses\t5023\t21733\nNet cash flow used for investing activities\t(24412)\t(1523027)\nCash flows from financing activities:\t\t\n(Payments) proceeds under revolving credit facilities net\t(728000)\t223000\nProceeds from borrowings\t1550000\t1100000\nDebt repayments\t(1085000)\t(75000)\nPayments for debt issuance costs and early redemption fee\t(36896)\t(20276)\nProceeds from sale of minority ownership interest in Premion\t14000\t0\nDividends paid\t(61110)\t(45451)\nOther net\t(9151)\t(499)\nNet cash flow (used for) provided by financing activities\t(356157)\t1181774\nIncrease (decrease) in cash\t135182\t(126668)\nBalance of cash beginning of period\t29404\t135862\nBalance of cash end of period\t164586\t9194\nSupplemental cash flow information:\t\t\nCash paid for income taxes net of refunds\t39872\t73457\nCash paid for interest\t174575\t117913\n", "q10k_tbl_8": "Quarters Ended:\tRedeemable noncontrolling interest\tCommon stock\tAdditional paid-in capital\tRetained earnings\tAccumulated other comprehensive loss\tTreasury stock\tTotal Equity\nBalance at June 30 2020\t14373\t324419\t140255\t6729896\t(140179)\t(5379084)\t1675307\nNet income\t51\t0\t0\t132219\t0\t0\t132219\nOther comprehensive income net of tax\t0\t0\t0\t0\t1092\t0\t1092\nTotal comprehensive income\t\t\t\t\t\t\t133311\nDividends declared: $0.07 per share\t0\t0\t0\t(15332)\t0\t0\t(15332)\nCompany stock 401(k) contribution\t0\t0\t(21886)\t0\t0\t26344\t4458\nStock-based awards activity\t0\t0\t(652)\t0\t0\t596\t(56)\nStock-based compensation\t0\t0\t5010\t0\t0\t0\t5010\nAccretion of redeemable noncontrolling interest\t280\t0\t0\t(280)\t0\t0\t(280)\nAdjustment of redeemable noncontrolling interest to redemption value\t(51)\t0\t0\t51\t0\t0\t51\nOther activity\t0\t0\t(2933)\t0\t0\t0\t(2933)\nBalance at Sept. 30 2020\t14653\t324419\t119794\t6846554\t(139087)\t(5352144)\t1799536\n\tRedeemable noncontrolling interest\tCommon stock\tAdditional paid-in capital\tRetained earnings\tAccumulated other comprehensive loss\tTreasury stock\tTotal\nBalance at June 30 2019\t0\t324419\t256024\t6553149\t(134194)\t(5519656)\t1479742\nNet income\t0\t0\t0\t48346\t0\t0\t48346\nOther comprehensive income net of tax\t0\t0\t0\t0\t835\t0\t835\nTotal comprehensive income\t\t\t\t\t\t\t49181\nDividends declared: $0.07 per share\t0\t0\t0\t(15174)\t0\t0\t(15174)\nCompany stock 401(k) contribution\t0\t0\t(7794)\t0\t0\t11036\t3242\nStock-based awards activity\t0\t0\t(763)\t0\t0\t711\t(52)\nStock-based compensation\t0\t0\t4445\t0\t0\t0\t4445\nOther activity\t0\t0\t312\t0\t0\t0\t312\nBalance at Sept. 30 2019\t0\t324419\t252224\t6586321\t(133359)\t(5507909)\t1521696\n", "q10k_tbl_9": "TEGNA Inc.\t\t\t\t\t\t\t\nCONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NON-CONTROLLING INTEREST\t\t\t\t\t\t\t\nUnaudited in thousands of dollars except per share data\t\t\t\t\t\t\t\nNine Months Ended:\tRedeemable noncontrolling interest\tCommon stock\tAdditional paid-in capital\tRetained earnings\tAccumulated other comprehensive loss\tTreasury stock\tTotal\nBalance at Dec. 31 2019\t0\t324419\t247497\t6655088\t(142597)\t(5494030)\t1590377\nNet income (loss)\t(433)\t0\t0\t238474\t0\t0\t238474\nOther comprehensive income net of tax\t0\t0\t0\t0\t3510\t0\t3510\nTotal comprehensive income\t\t\t\t\t\t\t241984\nDividends declared: $0.21 per share\t0\t0\t0\t(45922)\t0\t0\t(45922)\nCompany stock 401(k) contribution\t0\t0\t(57606)\t0\t0\t70629\t13023\nStock-based awards activity\t0\t0\t(80408)\t0\t0\t71257\t(9151)\nStock-based compensation\t0\t0\t12578\t0\t0\t0\t12578\nSale of minority ownership interest in Premion\t14000\t0\t0\t0\t0\t0\t0\nAccretion of redeemable noncontrolling interest\t653\t0\t0\t(653)\t0\t0\t(653)\nAdjustment of redeemable noncontrolling interest to redemption value\t433\t0\t0\t(433)\t0\t0\t(433)\nOther activity\t0\t0\t(2267)\t0\t0\t0\t(2267)\nBalance at Sept. 30 2020\t14653\t324419\t119794\t6846554\t(139087)\t(5352144)\t1799536\n\tRedeemable noncontrolling interest\tCommon stock\tAdditional paid-in capital\tRetained earnings\tAccumulated other comprehensive loss\tTreasury stock\tTotal\nBalance at Dec. 31 2018\t0\t324419\t301352\t6429512\t(136511)\t(5577848)\t1340924\nNet income\t0\t0\t0\t202280\t0\t0\t202280\nOther comprehensive income net of tax\t0\t0\t0\t0\t3152\t0\t3152\nTotal comprehensive income\t\t\t\t\t\t\t205432\nDividends declared: $0.21 per share\t0\t0\t0\t(45471)\t0\t0\t(45471)\nCompany stock 401(k) contribution\t0\t0\t(15053)\t0\t0\t21539\t6486\nStock-based awards activity\t0\t0\t(48899)\t0\t0\t48400\t(499)\nStock-based compensation\t0\t0\t13887\t0\t0\t0\t13887\nOther activity\t0\t0\t937\t0\t0\t0\t937\nBalance at Sept. 30 2019\t0\t324419\t252224\t6586321\t(133359)\t(5507909)\t1521696\n", "q10k_tbl_10": "\tQuarter ended Sept. 30\t\tNine months ended Sept. 30\t\n\t2020\t2019\t2020\t2019\nAdvertising & Marketing Services\t298605\t297333\t822841\t851304\nSubscription\t316677\t240735\t972954\t718472\nPolitical\t116494\t8131\t181425\t14064\nOther\t6613\t5658\t22985\t21702\nTotal revenues\t738389\t551857\t2000205\t1605542\n", "q10k_tbl_11": "\tNexstar Stations\tDispatch Stations\tJustice & Quest\tGray Stations\tTotal\nCash\t0\t2363\t0\t0\t2363\nAccounts receivable\t34680\t26344\t8501\t5553\t75078\nPrepaid and other current assets\t3776\t6092\t6987\t987\t17842\nProperty and equipment\t45186\t40418\t361\t11757\t97722\nGoodwill\t128191\t202312\t23567\t19405\t373475\nFCC licenses\t374269\t295983\t0\t47061\t717313\nNetwork affiliation agreements\t123926\t60765\t0\t14420\t199111\nRetransmission agreements\t68316\t33107\t0\t12198\t113621\nOther intangible assets\t0\t0\t52553\t0\t52553\nRight-of-use assets for operating leases\t22715\t362\t0\t251\t23328\nOther noncurrent assets\t237\t0\t5253\t18\t5508\nTotal assets acquired\t801296\t667746\t97222\t111650\t1677914\nAccounts payable\t2037\t954\t725\t1\t3717\nAccrued liabilities\t8544\t9011\t4236\t1494\t23285\nDeferred income tax liability\t0\t97082\t(462)\t0\t96620\nOperating lease liabilities - noncurrent\t20346\t226\t0\t235\t20807\nOther noncurrent liabilities\t426\t0\t2677\t0\t3103\nTotal liabilities assumed\t31353\t107273\t7176\t1730\t147532\nNet assets acquired\t769943\t560473\t90046\t109920\t1530382\nLess: cash acquired\t0\t(2363)\t0\t0\t(2363)\nLess: fair value of existing ownership\t0\t0\t(12995)\t0\t(12995)\nCash paid for acquisitions\t769943\t558110\t77051\t109920\t1515024\n", "q10k_tbl_12": "\tSept. 30 2020\t\tDec. 31 2019\t\n\tGross\tAccumulated Amortization\tGross\tAccumulated Amortization\nGoodwill\t2968693\t0\t2950587\t0\nIndefinite-lived intangibles:\t\t\t\t\nTelevision and radio station FCC broadcast licenses\t2104167\t0\t2090732\t0\nAmortizable intangible assets:\t\t\t\t\nRetransmission agreements\t235215\t(130236)\t256533\t(105212)\nNetwork affiliation agreements\t309503\t(66569)\t309496\t(48174)\nOther\t70610\t(21663)\t73305\t(15066)\nTotal indefinite-lived and amortizable intangible assets\t2719495\t(218468)\t2730066\t(168452)\n", "q10k_tbl_13": "\tSept. 30 2020\tDec. 31 2019\nCash value life insurance\t52050\t52462\nEquity method investments\t30257\t27650\nOther equity investments\t28124\t32383\nDeferred debt issuance costs\t10279\t10921\nOther long-term assets\t22496\t21853\nTotal\t143206\t145269\n", "q10k_tbl_14": "\tSept. 30 2020\tDec. 31 2019\nUnsecured floating rate term loan due quarterly through June 2020\t0\t20000\nUnsecured floating rate term loan due quarterly through September 2020\t0\t105000\nUnsecured notes bearing fixed rate interest at 5.125% due July 2020\t0\t310000\nUnsecured notes bearing fixed rate interest at 4.875% due September 20211\t350000\t350000\nUnsecured notes bearing fixed rate interest at 6.375% due October 2023\t0\t650000\nBorrowings under revolving credit agreement expiring August 2024\t175000\t903000\nUnsecured notes bearing fixed rate interest at 5.500% due September 2024\t325000\t325000\nUnsecured notes bearing fixed rate interest at 4.750% due March 2026\t550000\t0\nUnsecured notes bearing fixed rate interest at 7.75% due June 2027\t200000\t200000\nUnsecured notes bearing fixed rate interest at 7.25% due September 2027\t240000\t240000\nUnsecured notes bearing fixed rate interest at 4.625% due March 2028\t1000000\t0\nUnsecured notes bearing fixed rate interest at 5.00% due September 2029\t1100000\t1100000\nTotal principal long-term debt\t3940000\t4203000\nDebt issuance costs\t(40175)\t(26873)\nUnamortized premiums and discounts net\t6371\t3118\nTotal long-term debt\t3906196\t4179245\n1 We have the intent and ability to refinance the principal payment due within the next 12 months on a long-term basis through our revolving credit facility. As such all debt presented in the table above is classified as long-term on our September 30 2020 Condensed Consolidated Balance Sheet.\t\t\n", "q10k_tbl_15": "Period\tLeverage Ratio\nFiscal quarter ending September 30 2020 through and including fiscal quarter ending December 31 2021\t5.50 to 1.00\nFiscal quarter ending March 31 2022\t5.25 to 1.00\nFiscal quarter ending June 30 2022\t5.00 to 1.00\nFiscal quarter ending September 30 2022\t4.75 to 1.00\nThereafter\t4.50 to 1.00\n", "q10k_tbl_16": "\tQuarter ended Sept. 30\t\tNine months ended Sept. 30\t\n\t2020\t2019\t2020\t2019\nService cost-benefits earned during the period\t1\t2\t5\t6\nInterest cost on benefit obligation\t4868\t5761\t14605\t17284\nExpected return on plan assets\t(7765)\t(6580)\t(23294)\t(19740)\nAmortization of prior service cost\t23\t23\t68\t68\nAmortization of actuarial loss\t1541\t1521\t4622\t4562\nPension payment timing related charge\t0\t0\t0\t686\n(Gains from) expense for company-sponsored retirement plans\t(1332)\t727\t(3994)\t2866\n", "q10k_tbl_17": "\tRetirement Plans\tForeign Currency Translation\tTotal\nQuarters Ended:\t\t\t\nBalance at June 30 2020\t(140076)\t(103)\t(140179)\nOther comprehensive loss before reclassifications\t0\t(69)\t(69)\nAmounts reclassified from AOCL\t1161\t0\t1161\nTotal other comprehensive income\t1161\t(69)\t1092\nBalance at Sept. 30 2020\t(138915)\t(172)\t(139087)\nBalance at June 30 2019\t(134233)\t39\t(134194)\nOther comprehensive loss before reclassifications\t0\t(238)\t(238)\nAmounts reclassified from AOCL\t1073\t0\t1073\nTotal other comprehensive income\t1073\t(238)\t835\nBalance at Sept. 30 2019\t(133160)\t(199)\t(133359)\n\tRetirement Plans\tForeign Currency Translation\tTotal\nNine Months Ended:\t\t\t\nBalance at Dec. 31 2019\t(142398)\t(199)\t(142597)\nOther comprehensive income before reclassifications\t0\t27\t27\nAmounts reclassified from AOCL\t3483\t0\t3483\nTotal other comprehensive income\t3483\t27\t3510\nBalance at Sept. 30 2020\t(138915)\t(172)\t(139087)\nBalance at Dec. 31 2018\t(136893)\t382\t(136511)\nOther comprehensive income before reclassifications\t0\t(581)\t(581)\nAmounts reclassified from AOCL\t3733\t0\t3733\nTotal other comprehensive income\t3733\t(581)\t3152\nBalance at Sept. 30 2019\t(133160)\t(199)\t(133359)\n", "q10k_tbl_18": "\tQuarter ended Sept. 30\t\tNine months ended Sept. 30\t\n\t2020\t2019\t2020\t2019\nAmortization of prior service credit net\t(120)\t(120)\t(360)\t(360)\nAmortization of actuarial loss\t1671\t1551\t5013\t4653\nPension payment timing related charges\t0\t0\t0\t686\nTotal reclassifications before tax\t1551\t1431\t4653\t4979\nIncome tax effect\t(390)\t(358)\t(1170)\t(1246)\nTotal reclassifications net of tax\t1161\t1073\t3483\t3733\n", "q10k_tbl_19": "\tQuarter ended Sept. 30\t\tNine months ended Sept. 30\t\n\t2020\t2019\t2020\t2019\nNet Income\t132270\t48346\t238041\t202280\nNet (income) loss attributable to the noncontrolling interest\t(51)\t0\t433\t0\nAccretion of redeemable noncontrolling interest (see Note 11)\t(280)\t0\t(653)\t0\nAdjustment of redeemable noncontrolling interest to redemption value\t51\t0\t(433)\t0\nEarnings available to common shareholders\t131990\t48346\t237388\t202280\nWeighted average number of common shares outstanding - basic\t219579\t217315\t218997\t217040\nEffect of dilutive securities:\t\t\t\t\nRestricted stock units\t180\t607\t163\t420\nPerformance shares\t216\t364\t262\t312\nStock options\t2\t24\t1\t36\nWeighted average number of common shares outstanding - diluted\t219977\t218310\t219423\t217808\nNet income per share - basic\t0.60\t0.22\t1.08\t0.93\nNet income per share - diluted\t0.60\t0.22\t1.08\t0.93\n", "q10k_tbl_20": "\tTwo Years Ending September 30\t\t\t\t\t\n\t2020\t\t\t2019\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nAdvertising & Marketing Services\t47%\t\t\t53%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nSubscription\t45%\t}\t52%\t40%\t}\t46%\t\t\t\t\t\t\t\t\t\t\t\t\nPolitical\t7%\t6%\t\t\t\t\nOther\t1%\t\t\t1%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nTotal revenues\t100%\t\t\t100%\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n", "q10k_tbl_21": "\tQuarter ended Sept. 30\t\t\t\tNine months ended Sept. 30\t\t\t\n\t2020\t2019\tChange\t\t2020\t2019\tChange\t\nRevenues\t738389\t551857\t34%\t\t2000205\t1605542\t25%\t\nOperating expenses:\t\t\t\t\t\t\t\t\nCost of revenues\t379185\t306474\t24%\t\t1103920\t873078\t26%\t\nBusiness units - Selling general and administrative expenses\t89943\t78439\t15%\t\t267919\t223845\t20%\t\nCorporate - General and administrative expenses\t11263\t29792\t(62\t%)\t61289\t60363\t2%\t\nDepreciation\t16086\t15381\t5%\t\t49697\t44831\t11%\t\nAmortization of intangible assets\t17113\t15018\t14%\t\t50577\t32530\t55%\t\nSpectrum repacking reimbursements and other net\t(2902)\t(80)\t***\t\t(10533)\t(11399)\t(8\t%)\nTotal operating expenses\t510688\t445024\t15%\t\t1522869\t1223248\t24%\t\nTotal operating income\t227701\t106833\t***\t\t477336\t382294\t25%\t\nNon-operating expenses\t(53464)\t(53408)\t0%\t\t(169596)\t(127282)\t33%\t\nProvision for income taxes\t41967\t5079\t***\t\t69699\t52732\t32%\t\nNet income\t132270\t48346\t***\t\t238041\t202280\t18%\t\nNet (income) loss attributable to redeemable noncontrolling interest\t(51)\t0\t***\t\t433\t0\t***\t\nNet income attributable to TEGNA Inc.\t132219\t48346\t***\t\t238474\t202280\t18%\t\nNet income per share - basic\t0.60\t0.22\t***\t\t1.08\t0.93\t16%\t\nNet income per share - diluted\t0.60\t0.22\t***\t\t1.08\t0.93\t16%\t\n*** Not meaningful\t\t\t\t\t\t\t\t\n", "q10k_tbl_22": "\tQuarter ended Sept. 30\t\t\tNine months ended Sept. 30\t\t\t\n\t2020\t2019\tChange\t2020\t2019\tChange\t\nAdvertising & Marketing Services\t298605\t297333\t-%\t822841\t851304\t(3\t%)\nSubscription\t316677\t240735\t32%\t972954\t718472\t35%\t\nPolitical\t116494\t8131\t***\t181425\t14064\t***\t\nOther\t6613\t5658\t17%\t22985\t21702\t6%\t\nTotal revenues\t738389\t551857\t34%\t2000205\t1605542\t25%\t\n*** Not meaningful\t\t\t\t\t\t\t\n", "q10k_tbl_23": "\t\tSpecial Items\t\t\t\nQuarter ended September 30 2020\tGAAP measure\tWorkforce restructuring expense\tSpectrum repacking reimbursements and other\tNon-GAAP measure\t\nCost of revenues\t379185\t(595)\t0\t378590\t\nBusiness units - Selling general and administrative expenses\t89943\t(372)\t0\t89571\t\nCorporate - General and administrative expenses\t11263\t(54)\t0\t11209\t\nSpectrum repacking reimbursements and other net\t(2902)\t0\t2902\t0\t\nOperating expenses\t510688\t(1021)\t2902\t512569\t\nOperating income\t227701\t1021\t(2902)\t225820\t\nIncome before income taxes\t174237\t1021\t(2902)\t172356\t\nProvision for income taxes\t41967\t256\t(749)\t41474\t\nNet income attributable to TEGNA Inc.\t132219\t765\t(2153)\t130831\t\nNet income per share-diluted\t0.60\t0\t(0.01)\t0.59\t\n\t\tSpecial Items\t\t\t\nQuarter ended September 30 2019\tGAAP measure\tAcquisition-related costs\tSpectrum repacking reimbursements and other\tSpecial tax benefits\tNon-GAAP measure\nCorporate - General and administrative expenses\t29792\t(19973)\t0\t0\t9819\nSpectrum repacking reimbursements and other net\t(80)\t0\t80\t0\t0\nOperating expenses\t445024\t(19973)\t80\t0\t425131\nOperating income\t106833\t19973\t(80)\t0\t126726\nIncome before income taxes\t53425\t19973\t(80)\t0\t73318\nProvision for income taxes\t5079\t3889\t(3)\t5992\t14957\nNet income attributable to TEGNA Inc.\t48346\t16084\t(77)\t(5992)\t58361\nNet income per share-diluted (a)\t0.22\t0.07\t0\t(0.03)\t0.27\n(a) Per share amounts do not sum due to rounding\t\t\t\t\t\n", "q10k_tbl_24": "\t\tSpecial Items\t\t\t\t\t\t\t\nNine months ended September 30 2020\tGAAP measure\tWorkforce restructuring expense\tM&A due diligence costs\tAdvisory fees related to activism defense\tSpectrum repacking reimbursements and other\tGains on equity method investment\tOther non-operating items\tSpecial tax benefits\tNon-GAAP measure\nCost of revenues\t1103920\t(595)\t0\t0\t0\t0\t0\t0\t1103325\nBusiness units - Selling general and administrative expenses\t267919\t(372)\t0\t0\t0\t0\t0\t0\t267547\nCorporate - General and administrative expenses\t61289\t(54)\t(4588)\t(23087)\t0\t0\t0\t0\t33560\nSpectrum repacking reimbursements and other net\t(10533)\t0\t0\t0\t10533\t0\t0\t0\t0\nOperating expenses\t1522869\t(1021)\t(4588)\t(23087)\t10533\t0\t0\t0\t1504706\nOperating income\t477336\t1021\t4588\t23087\t(10533)\t0\t0\t0\t495499\nEquity income (loss) in unconsolidated investments net\t8407\t0\t0\t0\t0\t(18585)\t0\t0\t(10178)\nOther non-operating items net\t(17270)\t0\t0\t0\t0\t0\t21744\t0\t4474\nTotal non-operating expenses\t(169596)\t0\t0\t0\t0\t(18585)\t21744\t0\t(166437)\nIncome before income taxes\t307740\t1021\t4588\t23087\t(10533)\t(18585)\t21744\t0\t329062\nProvision for income taxes\t69699\t256\t1151\t5801\t(2766)\t(4670)\t5463\t3944\t78878\nNet income attributable to TEGNA Inc.\t238474\t765\t3437\t17286\t(7767)\t(13915)\t16281\t(3944)\t250617\nNet income per share-diluted (a)\t1.08\t0\t0.02\t0.08\t(0.04)\t(0.06)\t0.07\t(0.02)\t1.14\n(a) Per share amounts do not sum due to rounding\t\t\t\t\t\t\t\t\t\n\t\tSpecial Items\t\t\t\t\t\t\t\nNine months ended September 30 2019\tGAAP measure\tWorkforce restructuring expense\tAcquisition-related costs\tSpectrum repacking reimbursements and other\tGain on equity method investment\tOther non-operating items\tSpecial tax benefits\tNon-GAAP measure\t\nCost of revenues\t873078\t(875)\t0\t0\t0\t0\t0\t872203\t\nBusiness units - Selling general and administrative expenses\t223845\t(376)\t0\t0\t0\t0\t0\t223469\t\nCorporate - General and administrative expenses\t60363\t(201)\t(29092)\t0\t0\t0\t0\t31070\t\nSpectrum repacking reimbursements and other net\t(11399)\t0\t0\t11399\t0\t0\t0\t0\t\nOperating expenses\t1223248\t(1452)\t(29092)\t11399\t0\t0\t0\t1204103\t\nOperating income\t382294\t1452\t29092\t(11399)\t0\t0\t0\t401439\t\nEquity income (loss) in unconsolidated investments net\t10922\t0\t0\t0\t(13126)\t0\t0\t(2204)\t\nOther non-operating items net\t6962\t0\t0\t0\t0\t(6285)\t0\t677\t\nTotal non-operating expense\t(127282)\t0\t0\t0\t(13126)\t(6285)\t0\t(146693)\t\nIncome before income taxes\t255012\t1452\t29092\t(11399)\t(13126)\t(6285)\t0\t254746\t\nProvision for income taxes\t52732\t359\t5931\t(2850)\t(3169)\t(1574)\t5992\t57421\t\nNet income attributable to TEGNA Inc.\t202280\t1093\t23161\t(8549)\t(9957)\t(4711)\t(5992)\t197325\t\nNet income per share-diluted\t0.93\t0.01\t0.11\t(0.04)\t(0.05)\t(0.02)\t(0.03)\t0.91\t\n", "q10k_tbl_25": "\tQuarter ended Sept. 30\t\t\t\tNine months ended Sept. 30\t\t\t\n\t2020\t2019\tChange\t\t2020\t2019\tChange\t\nNet income attributable to TEGNA Inc. (GAAP basis)\t132219\t48346\t***\t\t238474\t202280\t18%\t\nPlus (Less): Net income (loss) attributable to redeemable noncontrolling interest\t51\t0\t***\t\t(433)\t0\t***\t\nPlus: Provision for income taxes\t41967\t5079\t***\t\t69699\t52732\t32%\t\nPlus: Interest expense\t51896\t52454\t(1\t%)\t160733\t145166\t11%\t\nPlus (Less): Equity loss (income) in unconsolidated investments net\t2529\t491\t***\t\t(8407)\t(10922)\t(23\t%)\n(Less) Plus: Other non-operating items net\t(961)\t463\t***\t\t17270\t(6962)\t***\t\nOperating income (GAAP basis)\t227701\t106833\t***\t\t477336\t382294\t25%\t\nPlus: Workforce restructuring expense\t1021\t0\t***\t\t1021\t1452\t(30\t%)\nPlus: M&A due diligence costs\t0\t0\t***\t\t4588\t0\t***\t\nPlus: Acquisition-related costs\t0\t19973\t***\t\t0\t29092\t***\t\nPlus: Advisory fees related to activism defense\t0\t0\t***\t\t23087\t0\t***\t\nLess: Spectrum repacking reimbursements and other net\t(2902)\t(80)\t***\t\t(10533)\t(11399)\t(8\t%)\nAdjusted operating income (non-GAAP basis)\t225820\t126726\t78%\t\t495499\t401439\t23%\t\nPlus: Depreciation\t16086\t15381\t5%\t\t49697\t44831\t11%\t\nPlus: Amortization of intangible assets\t17113\t15018\t14%\t\t50577\t32530\t55%\t\nAdjusted EBITDA (non-GAAP basis)\t259019\t157125\t65%\t\t595773\t478800\t24%\t\nCorporate - General and administrative expense (non-GAAP basis)\t11209\t9819\t14%\t\t33560\t31070\t8%\t\nAdjusted EBITDA excluding Corporate (non-GAAP basis)\t270228\t166944\t62%\t\t629333\t509870\t23%\t\n*** Not meaningful\t\t\t\t\t\t\t\t\n", "q10k_tbl_26": "\tNine months ended Sept. 30\t\n\t\t2020\t\t\t\t2019\t\t\t\t\t\tChange\t\t\nNet income attributable to TEGNA Inc. (GAAP basis)\t\t238474\t\t\t\t202280\t\t\t\t\t\t18%\t\t\nPlus: Provision for income taxes\t\t69699\t\t\t\t52732\t\t\t\t\t\t32%\t\t\nPlus: Interest expense\t\t160733\t\t\t\t145166\t\t\t\t\t\t11%\t\t\nPlus: M&A due diligence costs\t\t4588\t\t\t\t0\t\t\t\t\t\t***\t\t\nPlus: Acquisition-related costs\t\t0\t\t\t\t29092\t\t\t\t\t\t***\t\t\nPlus: Depreciation\t\t49697\t\t\t\t44831\t\t\t\t\t\t11%\t\t\nPlus: Amortization\t\t50577\t\t\t\t32530\t\t\t\t\t\t55%\t\t\nPlus: Stock-based compensation\t\t12578\t\t\t\t13887\t\t\t\t\t\t(9\t\t%)\nPlus: Company stock 401(k) contribution\t\t13023\t\t\t\t6486\t\t\t\t\t\t***\t\t\nPlus: Syndicated programming amortization\t\t53599\t\t\t\t42510\t\t\t\t\t\t26%\t\t\nPlus: Workforce restructuring expense\t\t1021\t\t\t\t1452\t\t\t\t\t\t(30\t\t%)\nPlus: Advisory fees related to activism defense\t\t23087\t\t\t\t0\t\t\t\t\t\t***\t\t\nPlus: Cash dividend from equity investments for return on capital\t\t5771\t\t\t\t751\t\t\t\t\t\t***\t\t\nPlus: Cash reimbursements from spectrum repacking\t\t12670\t\t\t\t13975\t\t\t\t\t\t(9\t\t%)\nPlus: Other non-operating items net\t\t17270\t\t\t\t(6962)\t\t\t\t\t\t***\t\t\nLess: Net loss attributable to redeemable noncontrolling interest\t\t(433)\t\t\t\t0\t\t\t\t\t\t***\t\t\nLess: Income tax payments net of refunds\t\t(39872)\t\t\t\t(73457)\t\t\t\t\t\t(46\t\t%)\nLess: Spectrum repacking reimbursements and other net\t\t(10533)\t\t\t\t(11399)\t\t\t\t\t\t(8\t\t%)\nLess: Equity income in unconsolidated investments net\t\t(8407)\t\t\t\t(10922)\t\t\t\t\t\t(23\t\t%)\nLess: Syndicated programming payments\t\t(52840)\t\t\t\t(40038)\t\t\t\t\t\t32%\t\t\nLess: Pension contributions\t\t(4192)\t\t\t\t(8407)\t\t\t\t\t\t(50\t\t%)\nLess: Interest payments\t\t(174575)\t\t\t\t(117913)\t\t\t\t\t\t48%\t\t\nLess: Purchases of property and equipment\t\t(30583)\t\t\t\t(51231)\t\t\t\t\t\t(40\t\t%)\nFree cash flow (non-GAAP basis)\t\t391352\t\t\t\t265363\t\t\t\t\t\t47%\t\t\n*** Not meaningful\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n", "q10k_tbl_27": "\tNine months ended Sept. 30\t\n\t2020\t2019\nBalance of cash and cash equivalents beginning of the period\t29404\t135862\nOperating activities:\t\t\nNet income\t238041\t202280\nDepreciation amortization and other non-cash adjustments\t117468\t75084\nPension contributions net of expense\t(8144)\t(5543)\nDecrease (increase) in trade receivables\t73838\t(24708)\nIncrease (decrease) in interest and taxes payable\t13793\t(1815)\nOther net\t80755\t(30713)\nCash flow from operating activities\t515751\t214585\nInvesting activities:\t\t\nPayments for acquisitions of businesses and other assets net of cash acquired\t(15841)\t(1507483)\nAll other investing activities\t(8571)\t(15544)\nCash flow used for investing activities\t(24412)\t(1523027)\nCash flow (used for) provided by financing activities\t(356157)\t1181774\nIncrease (decrease) in cash and cash equivalents\t135182\t(126668)\nBalance of cash and cash equivalents end of the period\t164586\t9194\n", "q10k_tbl_28": "Exhibit Number\tDescription\n3-1\tThird Restated Certificate of Incorporation of TEGNA Inc. (incorporated by reference to Exhibit 3-1 to TEGNA Inc.'s Form 10-Q for the fiscal quarter ended April 1 2007).\n3-1-1\tAmendment to Third Restated Certificate of Incorporation of TEGNA Inc. (incorporated by reference to Exhibit 3-1 to TEGNA Inc.'s Form 8-K filed on May 1 2015).\n3-1-2\tAmendment to Third Restated Certificate of Incorporation of TEGNA Inc. (incorporated by reference to Exhibit 3-1 to TEGNA Inc.'s Form 8-K filed on July 2 2015).\n3-2\tBy-laws as amended through July 24 2018. (incorporated by reference to Exhibit 3-1 to TEGNA Inc.'s Form 8-K filed on July 27 2018).\n4-1\tFifteenth Supplemental Indenture dated as of September 10 2020 between TEGNA Inc. and U.S. Bank National Association as Trustee.\n31-1\tRule 13a-14(a) Certification of CEO.\n31-2\tRule 13a-14(a) Certification of CFO.\n32-1\tSection 1350 Certification of CEO.\n32-2\tSection 1350 Certification of CFO.\n101.INS\tInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\n101.SCH\tInline XBRL Taxonomy Extension Schema Document.\n101.CAL\tInline XBRL Taxonomy Extension Calculation Linkbase Document.\n101.DEF\tInline XBRL Taxonomy Extension Definition Document.\n101.LAB\tInline XBRL Taxonomy Extension Label Linkbase Document.\n101.PRE\tInline XBRL Taxonomy Extension Presentation Linkbase Document.\n104\tCover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).\n"}{"bs": "q10k_tbl_11", "is": "q10k_tbl_5", "cf": "q10k_tbl_7"}None
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
Exhibits
EX-4.1
tgna-20200930xex4x1.htm
EX-31.1
tgna-20200930xex31x1.htm
EX-31.2
tgna-20200930xex31x2.htm
EX-32.1
tgna-20200930xex32x1.htm
EX-32.2
tgna-20200930xex32x2.htm
TEGNA Earnings 2020-09-30
Balance Sheet
Income Statement
Cash Flow
Assets, Equity
Rev, G Profit, Net Income
Ops, Inv, Fin
tgna-20200930
0000039899false2020Q312/31Cost of revenues exclude charges for depreciation and amortization expense, which are shown separately 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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, 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 October 31, 2020 was 219,241,555.
Accounts receivable, net of allowances of $8,427 and $3,723, respectively
503,000
581,765
Other receivables
14,093
19,640
Syndicated programming rights
60,378
49,616
Prepaid expenses and other current assets
21,224
26,899
Total current assets
763,281
707,324
Property and equipment
Cost
1,011,744
997,736
Less accumulated depreciation
(541,197)
(512,015)
Net property and equipment
470,547
485,721
Intangible and other assets
Goodwill
2,968,693
2,950,587
Indefinite-lived and amortizable intangible assets, less accumulated amortization of $218,468 and $168,452, respectively
2,501,027
2,561,614
Right-of-use assets for operating leases
98,242
103,461
Investments and other assets
143,206
145,269
Total intangible and other assets
5,711,168
5,760,931
Total assets
$
6,944,996
$
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)
Sept. 30, 2020
Dec. 31, 2019
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current liabilities
Accounts payable
$
61,441
$
51,894
Accrued liabilities
Compensation
44,744
63,876
Interest
25,699
46,013
Contracts payable for programming rights
145,796
119,872
Other
98,438
60,983
Dividends payable
—
15,188
Income taxes payable
23,226
3,332
Total current liabilities
399,344
361,158
Noncurrent liabilities
Income taxes
7,671
7,490
Deferred income tax liability
524,974
515,621
Long-term debt
3,906,196
4,179,245
Pension liabilities
114,281
127,146
Operating lease liabilities
100,660
105,902
Other noncurrent liabilities
77,681
67,037
Total noncurrent liabilities
4,731,463
5,002,441
Total liabilities
5,130,807
5,363,599
Commitments and contingent liabilities (see Note 11)
Redeemable noncontrolling interest (see Note 11)
14,653
—
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
119,794
247,497
Retained earnings
6,846,554
6,655,088
Accumulated other comprehensive loss
(139,087)
(142,597)
Less treasury stock at cost, 105,271,009 shares and 106,955,082 shares, respectively
(5,352,144)
(5,494,030)
Total equity
1,799,536
1,590,377
Total liabilities, redeemable noncontrolling interest and equity
$
6,944,996
$
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 Sept. 30,
Nine months ended Sept. 30,
2020
2019
2020
2019
Revenues
$
738,389
$
551,857
$
2,000,205
$
1,605,542
Operating expenses:
Cost of revenues1
379,185
306,474
1,103,920
873,078
Business units - Selling, general and administrative expenses
89,943
78,439
267,919
223,845
Corporate - General and administrative expenses
11,263
29,792
61,289
60,363
Depreciation
16,086
15,381
49,697
44,831
Amortization of intangible assets
17,113
15,018
50,577
32,530
Spectrum repacking reimbursements and other, net
(2,902)
(80)
(10,533)
(11,399)
Total
510,688
445,024
1,522,869
1,223,248
Operating income
227,701
106,833
477,336
382,294
Non-operating income (expense):
Equity (loss) income in unconsolidated investments, net
(2,529)
(491)
8,407
10,922
Interest expense
(51,896)
(52,454)
(160,733)
(145,166)
Other non-operating items, net
961
(463)
(17,270)
6,962
Total
(53,464)
(53,408)
(169,596)
(127,282)
Income before income taxes
174,237
53,425
307,740
255,012
Provision for income taxes
41,967
5,079
69,699
52,732
Net Income
132,270
48,346
238,041
202,280
Net (income) loss attributable to redeemable noncontrolling interest
(51)
—
433
—
Net income attributable to TEGNA Inc.
$
132,219
$
48,346
$
238,474
$
202,280
Net income per share:
Basic
$
0.60
$
0.22
$
1.08
$
0.93
Diluted
$
0.60
$
0.22
$
1.08
$
0.93
Weighted average number of common shares outstanding:
Basic shares
219,579
217,315
218,997
217,040
Diluted shares
219,977
218,310
219,423
217,808
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,
2020
2019
2020
2019
Net income
$
132,270
$
48,346
$
238,041
$
202,280
Other comprehensive income, before tax:
Foreign currency translation adjustments
(93)
(318)
37
(775)
Recognition of previously deferred post-retirement benefit plan costs
1,551
1,431
4,653
4,293
Pension lump-sum payment charges
—
—
—
686
Other comprehensive income, before tax
1,458
1,113
4,690
4,204
Income tax effect related to components of other comprehensive income
(366)
(278)
(1,180)
(1,052)
Other comprehensive income, net of tax
1,092
835
3,510
3,152
Comprehensive income
133,362
49,181
241,551
205,432
Comprehensive (income) loss attributable to redeemable noncontrolling interest
(51)
—
433
—
Comprehensive income attributable to TEGNA Inc.
$
133,311
$
49,181
$
241,984
$
205,432
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,
2020
2019
Cash flows from operating activities:
Net income
$
238,041
$
202,280
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation and amortization
100,274
77,361
Stock-based compensation
12,578
13,887
Company stock 401(k) contribution
13,023
6,486
Gains on sales of assets
—
(11,728)
Equity income from unconsolidated investments, net
(8,407)
(10,922)
Pension contributions, net of expense
(8,144)
(5,543)
Change in other assets and liabilities, net of acquisitions:
Decrease (increase) in trade receivables
73,838
(24,708)
Increase (decrease) in accounts payable
10,636
(15,950)
Increase (decrease) in interest and taxes payable
13,793
(1,815)
Increase in deferred revenue
27,706
1,027
Change in other assets and liabilities, net
42,413
(15,790)
Net cash flow from operating activities
515,751
214,585
Cash flows from investing activities:
Purchase of property and equipment
(30,583)
(51,231)
Reimbursements from spectrum repacking
12,670
13,975
Payments for acquisitions of businesses and other assets, net of cash acquired
(15,841)
(1,507,483)
Payments for investments
(709)
(4,041)
Proceeds from investments
5,028
4,020
Proceeds from sale of assets and businesses
5,023
21,733
Net cash flow used for investing activities
(24,412)
(1,523,027)
Cash flows from financing activities:
(Payments) proceeds under revolving credit facilities, net
(728,000)
223,000
Proceeds from borrowings
1,550,000
1,100,000
Debt repayments
(1,085,000)
(75,000)
Payments for debt issuance costs and early redemption fee
(36,896)
(20,276)
Proceeds from sale of minority ownership interest in Premion
14,000
—
Dividends paid
(61,110)
(45,451)
Other, net
(9,151)
(499)
Net cash flow (used for) provided by financing activities
(356,157)
1,181,774
Increase (decrease) in cash
135,182
(126,668)
Balance of cash, beginning of period
29,404
135,862
Balance of cash, end of period
$
164,586
$
9,194
Supplemental cash flow information:
Cash paid for income taxes, net of refunds
$
39,872
$
73,457
Cash paid for interest
$
174,575
$
117,913
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 June 30, 2020
$
14,373
$
324,419
$
140,255
$
6,729,896
$
(140,179)
$
(5,379,084)
$
1,675,307
Net income
51
—
—
132,219
—
—
132,219
Other comprehensive income, net of tax
—
—
—
—
1,092
—
1,092
Total comprehensive income
133,311
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
Accretion of redeemable noncontrolling interest
280
—
—
(280)
—
—
(280)
Adjustment of redeemable noncontrolling interest to redemption value
(51)
—
—
51
—
—
51
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
Redeemable noncontrolling interest
Common stock
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Treasury stock
Total
Balance at June 30, 2019
$
—
$
324,419
$
256,024
$
6,553,149
$
(134,194)
$
(5,519,656)
$
1,479,742
Net income
—
—
—
48,346
—
—
48,346
Other comprehensive income, net of tax
—
—
—
—
835
—
835
Total comprehensive income
49,181
Dividends declared: $0.07 per share
—
—
—
(15,174)
—
—
(15,174)
Company stock 401(k) contribution
—
—
(7,794)
—
—
11,036
3,242
Stock-based awards activity
—
—
(763)
—
—
711
(52)
Stock-based compensation
—
—
4,445
—
—
—
4,445
Other activity
—
—
312
—
—
—
312
Balance at Sept. 30, 2019
$
—
$
324,419
$
252,224
$
6,586,321
$
(133,359)
$
(5,507,909)
$
1,521,696
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 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)
(433)
—
—
238,474
—
—
238,474
Other comprehensive income, net of tax
—
—
—
—
3,510
—
3,510
Total comprehensive income
241,984
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 Premion
14,000
—
—
—
—
—
—
Accretion of redeemable noncontrolling interest
653
—
—
(653)
—
—
(653)
Adjustment of redeemable noncontrolling interest to redemption value
433
—
—
(433)
—
—
(433)
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
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
—
—
—
202,280
—
—
202,280
Other comprehensive income, net of tax
—
—
—
—
3,152
—
3,152
Total comprehensive income
205,432
Dividends declared: $0.21 per share
—
—
—
(45,471)
—
—
(45,471)
Company stock 401(k) contribution
—
—
(15,053)
—
—
21,539
6,486
Stock-based awards activity
—
—
(48,899)
—
—
48,400
(499)
Stock-based compensation
—
—
13,887
—
—
—
13,887
Other activity
—
—
937
—
—
—
937
Balance at Sept. 30, 2019
$
—
$
324,419
$
252,224
$
6,586,321
$
(133,359)
$
(5,507,909)
$
1,521,696
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. While some of these measures have been lifted or relaxed in certain state and local governments, other jurisdictions have seen increases in new COVID-19 cases resulting in restrictions being reinstated, or new restrictions imposed. Overall, demand improved for advertising during the second and third quarters as steps toward economic re-opening were implemented. There continues to be considerable uncertainty regarding how current and future health and safety measures implemented in response to the pandemic will impact our business.
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 continue to have a dampening effect on our near-term AMS revenues.
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 (loss) income 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 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.
10
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 nine months of 2020 and 2019, we incurred programming expense of $53.6 million and $42.5 million; in the third quarter of 2020 and 2019, we incurred programming expense of $17.6 million and $15.5 million, respectively. Programming expense is included in the “Cost of revenues” line item of our Consolidated Statements of Income. As of September 30, 2020, $60.4 million of programming assets had been recorded, to 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 September 30, 2020, our allowance for doubtful accounts was $8.4 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 third quarter and first nine months of 2020 and 2019 are shown below (amounts in thousands):
Quarter ended Sept. 30,
Nine months ended Sept. 30,
2020
2019
2020
2019
Advertising & Marketing Services
$
298,605
$
297,333
$
822,841
$
851,304
Subscription
316,677
240,735
972,954
718,472
Political
116,494
8,131
181,425
14,064
Other
6,613
5,658
22,985
21,702
Total revenues
$
738,389
$
551,857
$
2,000,205
$
1,605,542
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.
Dispatch Stations
On August 8, 2019, we completed the acquisition of Dispatch Broadcast Group’s twotop-rated television stations and tworadio 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):