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EX-32 - EXHIBIT 32 - MEDIA GENERAL INCexhibit32.htm
EX-31.2 - EXHIBIT 31.2 - MEDIA GENERAL INCexhibit312.htm
EX-31.1 - EXHIBIT 31.1 - MEDIA GENERAL INCexhibit311.htm


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC. 20549
Form 10-Q
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2015
OR
[   ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to           
Commission file number:         
1-6383

MEDIA GENERAL, INC.
(Exact name of registrant as specified in its charter)
Commonwealth of Virginia
46-5188184
(State or other jurisdiction of 
(I.R.S. Employer
incorporation or organization) 
Identification No.)
 
 
333 E. Franklin St., Richmond, VA
23219
(Address of principal executive offices) 
(Zip Code)
 
(804) 887-5000
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year,
if changed since last report.)
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          X          No               
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes          X          No               
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act).
 Larger accelerated filer               X       
 Accelerated filer                                      
 Non-accelerated filer                            
 Smaller reporting company                    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes                    No          X     
Indicate the number of shares outstanding of each of the issuer's classes of common stock as of August 5, 2015.
Voting Common shares (no par value):          127,763,055




MEDIA GENERAL, INC.
TABLE OF CONTENTS
FORM 10-Q REPORT
June 30, 2015
 
 
 
Page
Part I.
Financial Information
 
 
 
 
 
Item 1.
Financial Statements
 
 
 
 
 
 
 
Consolidated Condensed Balance Sheets – June 30, 2015 and December 31, 2014
 
 
 
 
 
 
Consolidated Condensed Statements of Comprehensive Income – Three and six months ended June 30, 2015 and June 30, 2014
 
 
 
 
 
 
Consolidated Condensed Statements of Cash Flows – Six months ended June 30, 2015 and June 30, 2014
 
 
 
 
 
 
Notes to Consolidated Condensed Financial Statements 
 
 
 
 
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
 
 
 
 
Item 3.
Quantitative and Qualitative Disclosure About Market Risk
 
 
 
 
Item 4.
Controls and Procedures
 
 
 
 
Part II.
Other Information
 
 
 
 
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
 
 
 
 
Item 5.
 
Other Information
 
 
 
 
Item 6.
Exhibits
 
 
 
 
 
 
(a)     Exhibits
 
 
 
 
Signatures




PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Media General, Inc.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited, in thousands, except shares)

 
ASSETS
 
 
 
 
June 30,
2015
 
December 31,
2014
Current assets:
 
 
 
Cash and cash equivalents
$
72,078

 
$
43,920

Restricted cash at qualified intermediary

 
119,903

Trade accounts receivable (less allowance for doubtful accounts 2015 - $4,495; 2014 - $5,475)
246,295

 
265,169

Current deferred tax asset
51,732

 
55,754

Prepaid expenses and other current assets
36,739

 
39,098

Total current assets
406,844

 
523,844

 
 
 
 
Property and equipment, net of accumulated depreciation 2015 - $105,736; 2014 - $68,141
483,581

 
499,472

Other assets, net
71,290

 
78,999

Definite lived intangible assets, net of accumulated amortization 2015 - $93,868; 2014 - $48,485
912,487

 
956,300

Broadcast licenses
1,097,100

 
1,097,100

Goodwill
1,597,486

 
1,597,486

Total assets (a)
$
4,568,788

 
$
4,753,201

 
 
See accompanying notes.
 

(a) Consolidated assets as of June 30, 2015 and December 31, 2014, include total assets of variable interest entities (VIEs) of $153 million and $151 million, respectively, which can only be used to settle the obligations of the VIEs. See Note 1 and Note 4.

1



Media General, Inc.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited, in thousands except shares)

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
June 30,
2015
 
December 31,
2014
Current liabilities:
 
 
 
Trade accounts payable
$
33,293

 
$
36,359

Accrued salaries and wages
24,822

 
36,634

Accrued expenses and other current liabilities
108,940

 
104,092

Current installments of long-term debt
3,404

 
11,781

Current installments of obligation under capital leases
856

 
815

Total current liabilities
171,315

 
189,681

 
 
 
 
Long-term debt
2,272,695

 
2,400,162

Deferred tax liability and other long-term tax liabilities
359,229

 
364,289

Long-term capital lease obligations
14,436

 
14,869

Retirement and postretirement plans
202,994

 
211,264

Other liabilities
35,005

 
38,034

Total liabilities (b)
3,055,674

 
3,218,299

 
 
 
 
Commitments and contingencies

 

 
 
 
 
Noncontrolling interests
31,065

 
34,481

 
 
 
 
Stockholders' equity:
 
 
 
Preferred stock (no par value): authorized 50,000,000 shares; none outstanding

 

Common stock (no par value):
 
 
 
Voting common stock, authorized 400,000,000 shares; issued 2015 - 128,618,288 and 2014 - 129,931,812
1,311,141

 
1,322,284

Accumulated other comprehensive loss
(36,445
)
 
(36,445
)
Retained earnings
207,353

 
214,582

Total stockholders' equity
1,482,049

 
1,500,421

Total liabilities, noncontrolling interests and stockholders' equity
$
4,568,788

 
$
4,753,201

 
 
See accompanying notes.

(b) Consolidated liabilities as of June 30, 2015 and December 31, 2014, include total liabilities of VIEs of $39 million and $43 million, respectively, for which the creditors of the VIEs have no recourse to the Company, except for certain of the debt, which the Company guarantees. See Note 1 and Note 4.


2



Media General, Inc.
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME        
(Unaudited, in thousands, except per share amounts)        
 
Three Months Ended
 
Six Months Ended
 
June 30,
2015
 
June 30,
2014
 
June 30,
2015
 
June 30,
2014
Net operating revenue
$
320,523

 
$
154,111

 
$
617,257

 
$
298,029

Operating costs:
 
 
 
 
 
 
 
Operating expenses, excluding depreciation expense
134,169

 
50,818

 
260,045

 
101,433

Selling, general and administrative expenses
79,051

 
41,930

 
159,521

 
84,262

Amortization of program license rights
12,047

 
4,947

 
23,805

 
9,910

Corporate and other expenses
12,366

 
7,633

 
25,017

 
14,211

Depreciation and amortization
42,618

 
16,440

 
82,901

 
32,635

(Gain) loss related to property and equipment, net
(196
)
 
992

 
(424
)
 
221

Merger-related and restructuring expenses
3,616

 
9,314

 
8,893

 
14,066

Total operating costs
283,671

 
132,074

 
559,758

 
256,738

Operating income
36,852

 
22,037

 
57,499

 
41,291

Other income (expense):
 
 
 
 
 
 
 
Interest expense
(29,288
)
 
(9,616
)
 
(60,311
)
 
(19,606
)
Debt modification and extinguishment costs
(1,827
)
 
(85
)
 
(2,440
)
 
(183
)
Other, net
2,622

 
85

 
5,912

 

Total other expense
(28,493
)
 
(9,616
)
 
(56,839
)
 
(19,789
)
 
 
 
 
 
 
 
 
Income before income taxes
8,359

 
12,421

 
660

 
21,502

Income tax expense
(3,616
)
 
(5,529
)
 
(459
)
 
(9,171
)
Net income
4,743

 
6,892

 
201

 
12,331

 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interests (included above)
3,108

 
106

 
5,999

 
160

Net income (loss) attributable to Media General
$
1,635

 
$
6,786

 
$
(5,798
)
 
$
12,171

 
 
 
 
 
 
 
 
Other comprehensive income

 

 

 

Total comprehensive income
$
4,743

 
$
6,892

 
$
201

 
$
12,331

 
 
 
 
 
 
 
 
Other comprehensive income attributable to noncontrolling interest

 

 

 

Total comprehensive income (loss) attributable to Media General
$
1,635

 
$
6,786

 
$
(5,798
)
 
$
12,171

 
 
 
 
 
 
 
 
Earnings (loss) per common share (basic and diluted):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings (loss) per common share (basic)
$
0.01

 
$
0.08

 
$
(0.04
)
 
$
0.14

Net earnings (loss) per common share (assuming dilution)
$
0.01

 
$
0.08

 
$
(0.04
)
 
$
0.14

 
See accompanying notes.

3



Media General, Inc.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
 
Six Months Ended
 
June 30,
2015
 
June 30,
2014
Cash flows from operating activities:
 
 
 
Net income
$
201

 
$
12,331

Adjustments to reconcile net income:
 
 
 
Deferred income tax (benefit) expense
(1,041
)
 
8,890

Depreciation and amortization
82,901

 
32,635

Amortization of program license rights
23,805

 
9,910

Non-cash interest expense
943

 
243

(Gain) loss on disposal of property and equipment, net
(424
)
 
221

Gain on relocation of spectrum
(5,620
)
 

Stock-based compensation
6,860

 
171

Debt modification and extinguishment costs
2,440

 
183

Change in assets and liabilities:
 
 
 
Program license rights, net of liabilities
(23,269
)
 
(10,199
)
Trade accounts receivable
19,854

 
951

Company owned life insurance (cash surrender value less policy loans including repayments)
(347
)
 
(1,309
)
Trade accounts payable, accrued expenses and other liabilities
(8,599
)
 
453

Contributions to retirement plans
(1,250
)
 
(47,480
)
Other, net
(66
)
 
(4,181
)
Net cash provided by operating activities
96,388

 
2,819

Cash flows from investing activities:
 
 
 
Capital expenditures
(24,050
)
 
(8,372
)
Release of restricted cash at qualified intermediary
119,903

 

Payment/deposit for acquisition of station assets

 
(8,340
)
Deferred proceeds related to sale of property

 
24,535

Proceeds from the sale of property and equipment
691

 
1,072

Proceeds from spectrum relocation
3,120

 

Other, net
(69
)
 
980

Net cash provided by investing activities
99,595

 
9,875

Cash flows from financing activities:
 
 
 
Repayment of borrowings under Media General Credit Agreement
(135,000
)
 
(64,000
)
Repayment of borrowings under Shield Media Credit Agreement
(1,200
)
 
(1,200
)
Repayment of other borrowings
(580
)
 

Principal borrowings under revolving credit facility

 
10,000

Repayment of borrowings under revolving credit facility

 
(10,000
)
Repurchase of shares
(18,747
)
 

Payment for the acquisition of noncontrolling interest
(9,218
)
 

Cash paid for debt modification
(3,425
)
 

Other, net
345

 
(946
)
Net cash used by financing activities
(167,825
)
 
(66,146
)
Net increase (decrease) in cash and cash equivalents
28,158

 
(53,452
)
Cash and cash equivalents at beginning of period
43,920

 
71,618

Cash and cash equivalents at end of period
$
72,078

 
$
18,166

Cash paid for interest
$
63,724

 
$
20,871

Cash paid for income taxes, net
$
3,838


$
930

See accompanying notes.

4



MEDIA GENERAL, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
 

Note 1: Basis of Presentation
 
The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States and with applicable quarterly reporting regulations of the Securities and Exchange Commission. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements and, accordingly, should be read in conjunction with the consolidated financial statements and related footnotes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of interim financial information have been included.
 
On December 19, 2014 (the "Closing Date"), Media General, Inc., now known as MGOC, Inc. (“Old Media General”), and LIN Media LLC, a Delaware limited liability company (“LIN Media” or “LIN”) were combined in a business combination transaction (the “LIN Merger”). As a result of the LIN merger, Media General, Inc., formerly known as Mercury New Holdco, Inc. (“New Media General”, "Media General" or the “Company”) became the parent public reporting company of the combined company; LIN Television Corporation (“LIN Television”) became a direct, wholly owned subsidiary of New Media General; and Old Media General became a direct, wholly owned subsidiary of LIN Television and an indirect, wholly owned subsidiary of New Media General. The merger was accounted for in accordance with FASB Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”), and New Media General was the acquirer.
 
References to Media General, we, us, or the Company in this Item 1 that include any period at and before the effectiveness of the LIN Merger shall be deemed to refer to Old Media General as the predecessor registrant to New Media General.
 
The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries and certain variable interest entities (“VIE”) for which the Company is considered to be the primary beneficiary. Significant intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company is the primary beneficiary of a VIE for financial reporting purposes, the Company considers whether it has the power to direct certain activities of the VIE that most significantly impact the economic performance of the VIE and whether it has the obligation to absorb losses or the right to receive returns that would be significant to the VIE.  Assets of consolidated VIE’s can only be used to settle the obligations of that VIE.  As discussed in Note 4, the Company consolidates the results of WXXA, WLAJ, WBDT, WYTV, KTKA, KWBQ, KRWB, and KASY pursuant to the VIE accounting guidance. All the liabilities are non-recourse to the Company, except for certain of the debt, which the Company guarantees. The Company is also the primary beneficiary of the VIE that holds the Supplemental 401(k) Plan’s investments and consolidates the plan accordingly.
 
The Company guarantees all of LIN Television's debt and the debt of its consolidated VIEs. LIN Television guarantees all of the debt of its restricted wholly owned subsidiaries and the debt of its consolidated VIEs. All of the consolidated wholly owned subsidiaries of LIN Television fully and unconditionally guarantee LIN Television's 5.875% Senior Notes due 2022 (the “2022 Notes”) and the 6.375% Senior Notes due 2021 (the "2021 Notes") on a joint-and-several basis, subject to customary release provisions.

     In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 is effective for annual periods beginning on or after December 15, 2015. As a result the Company expects to reclassify the unamortized balance of the $36 million of debt issuance costs currently included in "Other assets, net" on the Consolidated Condensed Balance Sheet to Long-term debt upon adoption of the guidance in early 2016.



5



Note 2: Mergers, Acquisitions and Dispositions
 
LIN Merger
 
As described in Note 1, Old Media General and LIN were combined under New Media General, a newly formed holding company, that was renamed Media General. This combination increased the scale of the combined entity. In connection with the LIN Merger, the Company issued a total of approximately 41,239,715 shares of voting common stock and paid approximately $763 million in cash to the former LIN Media shareholders. The total purchase price of the LIN Merger was approximately $2.4 billion. The LIN Merger was financed using proceeds from the Company and LIN Television’s borrowings under the credit agreement, as defined and more fully described in Note 5.
 
In connection with the LIN Merger, the Company sold WJAR-TV in Providence, RI, WLUK-TV and WCWF-TV in Green Bay-Appleton, WI, certain assets of WTGS-TV in Savannah, GA, WJCL-TV in Savannah, GA, WVTM-TV in Birmingham, AL and WALA-TV in Mobile, AL for approximately $360 million and purchased KXRM-TV and KXTU-LD in Colorado Springs, CO and WTTA-TV in Tampa, FL for approximately $93 million. The assets of the stations sold included goodwill of approximately $84 million.
 
Following the LIN Merger and the divestitures and acquisitions discussed above, the Company now owns or operates 71 stations across 48 markets. The Company also has a digital media portfolio comprised of six digital offerings: LIN Digital, LIN Mobile, Federated Media, Dedicated Media, HYFN, and BiteSize TV.
 
The LIN Merger closed during December 2014. The initial allocated fair value of the acquired assets and assumed liabilities of LIN (including the acquisitions of the stations in Colorado Springs and Tampa discussed above) was adjusted during the six-months ended June 30, 2015 based on information that became available to management subsequent to the acquisition date. These adjustments were retroactively applied to the December 31, 2014 balances. The fair value of the consideration paid related to the LIN Merger increased by $1.2 million as well. The initial allocated fair value, including adjustments during the six months ended June 30, 2015, is presented below:
 
Initial Allocation of Fair Value
(In thousands)
June 30,
2015
 
Adjustments
 
December 31,
2014
Current assets acquired
$
217,816

 
$
(700
)
 
$
218,516

Property and equipment
284,217

 
4,093

 
280,124

Other assets acquired
12,812

 

 
12,812

FCC broadcast licenses
588,042

 
(26,900
)
 
614,942

Definite lived intangible assets
786,705

 
46,640

 
740,065

Goodwill
1,119,957

 
(12,581
)
 
1,132,538

Deferred income tax liabilities recorded in conjunction with the acquisition
(338,535
)
 
(7,888
)
 
(330,647
)
Current liabilities assumed
(112,917
)
 
(1,400
)
 
(111,517
)
Other liabilities assumed
(79,267
)
 
(82
)
 
(79,185
)
Total
$
2,478,830

 
 

 
$
2,477,648

 
Current assets acquired included cash and cash equivalents of $26 million and trade accounts receivable of $166 million.

The amount allocated to definite-lived intangible assets represents the estimated fair values of network affiliations of $497 million, advertiser and publisher relationships of $220 million, $37 million of local marketing agreements (LMA), $16 million of technology and trade names and favorable lease assets of $17 million. These intangible assets will be amortized over their weighted-average estimated remaining useful lives of 15 years for network affiliations, 5-7 years for the advertiser relationships, 20 years for LMA agreements, 5 years for technology and trade names and 10 years for favorable lease assets. Acquired property and equipment will be depreciated on a straight-line basis over the respective estimated remaining useful lives.
 
None of the goodwill recognized in connection with the LIN Merger is expected to be tax deductible.
 

6



The initial allocation presented above is based upon management’s preliminary estimate of the fair values using valuation techniques including income, cost and market approaches. In estimating the fair value of the acquired assets and assumed liabilities, the fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates and estimated discount rates. Network affiliations and advertiser relationships were valued primarily using an excess earnings income approach. The broadcast licenses represent the estimated fair value of the FCC license using a “Greenfield” income approach. Under this approach, the broadcast license is valued by analyzing the estimated after-tax discounted future cash flows of an average market participant. Property and equipment was primarily valued using a cost approach. Acquired program license rights will be amortized to operating expense over the estimated broadcast period in an amount equal to the relative benefit that is expected to be derived from the airing of the program, or on a straight line basis over the life of the program where the expected useful life is one year or less.
 
The Company incurred $0.9 million and $3.6 million of legal, accounting and other professional fees and expenses during the three and six month periods ended June 30, 2015, respectively, related to the merger with LIN.


Note 3: Segment Information
 
During 2015, as a result of the LIN Merger discussed in Note 2, the Company began assessing and internally reporting financial information for the broadcast business and the digital business separately. As a result, we now have two reportable operating segments, “Broadcast” and “Digital” that are disclosed separately from our corporate activities. The Broadcast segment includes 71 television stations that are either owned, operated or serviced by the Company in 48 U.S. markets, all of which are engaged principally in the sale of television advertising. The Digital segment includes the operating results of the digital companies (LIN Digital, LIN Mobile, HYFN, Dedicated Media, BiteSize TV, and Federated Media) as well as the business operations related to the television station companion websites. Unallocated corporate expenses primarily include costs to operate as a public company and to operate corporate locations.
 
The Company identifies operating segments based on how the chief operating decision maker (“CODM”) allocates resources, assesses performance and makes decisions. The CODM is the President, and Chief Executive Officer. The CODM evaluates performance and allocates resources based on operating income or loss for the Broadcast and Digital segments, excluding non-segment expenses.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in thousands)
2015
 
2014
 
2015
 
2014
Revenues
 
 
 
 
 
 
 
Broadcast
$
284,102

 
$
148,156

 
$
550,586

 
$
287,150

Digital
36,421

 
5,955

 
66,671

 
10,879

Revenues
$
320,523

 
$
154,111

 
$
617,257

 
$
298,029

 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in thousands)
2015
 
2014
 
2015
 
2014
Operating income
 
 
 
 
 
 
 
Broadcast
$
96,165

 
$
54,935

 
$
176,986

 
$
100,905

Digital
(909
)
 
1,481

 
(3,100
)
 
1,519

Segment operating income
95,256

 
56,416

 
173,886

 
102,424

Corporate and other expenses
(12,366
)
 
(7,633
)
 
(25,017
)
 
(14,211
)
Depreciation and amortization
(42,618
)
 
(16,440
)
 
(82,901
)
 
(32,635
)
Gain (loss) related to property and equipment, net
196

 
(992
)
 
424

 
(221
)
Merger-related expenses and restructuring expenses
(3,616
)
 
(9,314
)
 
(8,893
)
 
(14,066
)
Operating income
$
36,852

 
$
22,037

 
$
57,499

 
$
41,291



7



(in thousands)
June 30,
2015
 
December 31,
2014
Assets
 
 
 
Broadcast
$
3,991,242

 
$
4,062,428

Digital
360,181

 
373,718

Segment assets
4,351,423

 
4,436,146

Corporate
217,365

 
317,055

Total assets
$
4,568,788

 
$
4,753,201

 

Note 4: Variable Interest Entities
 
Shield Media Entities
 
Shield Media LLC and Shield Media Lansing LLC, through their respective subsidiaries, WXXA-TV LLC (“WXXA”) and WLAJ-TV LLC (“WLAJ”), have Joint Sales Agreements (“JSA”) and Shared Service Agreements (“SSA”) in place with the Company. Under these agreements the Company provides a variety of operational and administrative services for WXXA and WLAJ (the “Shield Stations”). In return, the Company is paid a JSA fee from the ad sales collected and is also paid an SSA fee for providing the operational services. If, in a given period, expenses incurred by WXXA and/or WLAJ exceed their revenue share and the Shield Stations are not in a position to pay the Company the JSA and/or SSA fees, the Company would be at a loss for the services provided. Under the JSA/SSA agreements, if at any time the Shield Stations default on its loan, the Company, as the guarantor of the Shield Station loans, would be the responsible party. Additionally, the Company has options to acquire the Shield Stations at any time, subject to FCC consent, until the expiration of the applicable JSA. The Company determined that the Shield stations are VIEs and as a result of the JSAs and/or SSAs, it has a variable interest in these entities.
 
Other JSA and SSA Entities
 
Beginning on December 19, 2014, the Company has a JSA and an SSA with WBDT Television, LLC (“WBDT”), a third party licensee for WBDT-TV in the Dayton, OH market. It also has JSAs and SSAs with affiliates of Vaughan Acquisition LLC (“Vaughan”), a third-party licensee for WYTV-TV in the Youngstown, OH market and KTKA-TV in the Topeka, KS market and SSAs with KASY-TV Licensee, LLC (“KASY”), a third-party licensee, for KWBQ-TV in the Santa Fe, NM market, KRWB-TV in the Roswell, NM market and KASY-TV in the Albuquerque, NM market. Under these agreements, the Company provides administrative services to these stations, has an obligation to reimburse certain of the stations' expenses, and is compensated through a performance-based fee structure that provides the Company the benefit of certain returns from the operation of these stations. The company determined that WBDT, Vaughan and KASY are VIEs and as a result of the JSAs and/or SSAs, it has a variable interest in these entities.
 
The Company is the primary beneficiary of the Shield Stations and other JSA and SSA entities described above and therefore, the financial results and financial position of these entities have been consolidated by the Company in accordance with the VIE accounting guidance.


8



The carrying amounts and classification of the assets and liabilities of the Shield Stations and the other JSA and SSA entities described above, which have been included in the consolidated balance sheets as of June 30, 2015, and December 31, 2014, were as follows:
 
(In thousands)
June 30,
2015
 
December 31,
2014
Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
10,970

 
$
3,846

Trade accounts receivable (less allowance for doubtful accounts 2015 - $82; 2014 - $99)
8,628

 
10,336

Prepaid expenses and other current assets
920

 
1,156

Total current assets
20,518

 
15,338

Property and equipment, net
3,528

 
5,402

Other assets, net
1,652

 
2,011

Definite lived intangible assets, net
33,870

 
34,885

Broadcast licenses
71,300

 
71,300

Goodwill
21,859

 
21,859

Total assets
$
152,727

 
$
150,795

Liabilities
 
 
 
Current liabilities
 
 
 
Trade accounts payable
$
80

 
$
56

Other accrued expenses and other current liabilities
2,282

 
6,839

Current installments of long-term debt
3,411

 
3,562

Total current liabilities
5,773

 
10,457

Long-term debt
26,520

 
28,150

Other liabilities
6,851

 
3,914

Total liabilities
$
39,144

 
$
42,521


The December 31, 2014 balances included above were adjusted to reflect the purchase price adjustment discussed in Note 2.

The assets of the Company’s consolidated VIEs can only be used to settle the obligations of the VIEs and may not be sold, or otherwise disposed of, except for assets sold or replaced with others of like kind or value. At June 30, 2015, the Company has an option to acquire the assets or member's interest of the VIE entities that it may exercise if the FCC attribution rules change to permit the Company to acquire such interest. The option exercise price is of nominal value and significantly less than the carrying value of their tangible and intangible net assets. The options are carried at zero on the Company’s consolidated balance sheet, as any value attributable to the options is eliminated in the consolidation of the VIEs. In an order adopted in March 2014, the FCC concluded that JSAs should be “attributable” for purposes of the media ownership rules if they permit a television licensee to sell more than 15% of the commercial inventory of a television station owned by a third party in the same market. Stations with JSAs that would put them in violation of the new rules have until December 19, 2016 to amend or terminate those arrangements, unless they are able to obtain a waiver of such rules. Accordingly, absent further developments, or the grant of waivers, the Company will be required to modify or terminate its existing JSAs no later than December 19, 2016.

In July 2015 the Company received a $9 million dividend from the Shield Stations and these funds became available to settle the obligations of the Company.


9




Note 5: Debt and Other Financial Instruments
 
Long-term debt at June 30, 2015, and December 31, 2014, was as follows:
 
(In thousands)
2015
 
2014
Media General Credit Agreement
$
1,566,000

 
$
1,701,000

2022 Notes
400,000

 
400,000

2021 Notes
290,000

 
290,000

Shield Media Credit Agreement
28,400

 
29,600

Other borrowings
1,524

 
2,111

Total debt
2,285,924

 
2,422,711

Less: net unamortized discount
(9,825
)
 
(10,768
)
Less: scheduled current maturities
(3,404
)
 
(11,781
)
 
 
 
 
Long-term debt excluding current maturities
$
2,272,695

 
$
2,400,162

 
Media General Credit Agreement
 
In July 2013, the Company entered into a credit agreement with a syndicate of lenders to provide the Company with a term loan and access to a revolving credit facility. The funds borrowed under the credit agreement and subsequent amendments (together the "Credit Agreement") have been used by the Company to facilitate acquisitions and mergers. The term loan under the Credit Agreement matures in July 2020 and bears interest at LIBOR (with a floor of 1%) plus a margin of 3%.
 
The Company repaid $100 million and $135 million of principal on the term loan during the three and six months ended June 30, 2015, respectively. The early repayments of debt resulted in debt extinguishment costs of $1.8 million and $2.4 million during the three and six months ended June 30, 2015, respectively, due to the accelerated recognition of deferred debt-related items. As of June 30, 2015, there was $1.566 billion outstanding under the Credit Agreement.
 
The revolving credit facility under the Credit Agreement also includes revolving credit commitments of $150 million. The revolving credit facility matures in October 2019, bears an interest rate of LIBOR plus a margin of 2.75% and is subject to a 0.5% commitment fee per annum with respect to the undrawn portion of the facility. The Company has $147 million of availability under the revolving credit facility (giving effect to $3 million of letters of credit which have been issued but are undrawn).
 
Shield Media Credit Agreement
 
Shield Media LLC (and its subsidiary WXXA) and Shield Media Lansing LLC (and its subsidiary WLAJ) (collectively, “Shield Media”), companies that control subsidiaries with which the Company has joint sales and shared services arrangements for 2 stations as described in Note 4, entered into a new credit agreement with a syndicate of lenders, dated July 31, 2013. The term loans outstanding under this agreement mature in July 2018 and bear interest at LIBOR plus a margin of 3.25%. The Shield Media term loans are guaranteed by the Company and are secured by liens on substantially all of the assets of the Company, on a pari passu basis with the Credit Agreement. The Company repaid $0.6 million and $1.2 million of principal on the term loan during the three and six months ended June 30, 2015, respectively.

2022 Notes
 
On November 5, 2014, a wholly owned subsidiary of Old Media General completed the issuance of $400 million in aggregate principal amount of 5.875% Senior Unsecured Notes due in 2022 (the “2022 Notes”) in connection with the financing of the LIN Merger. The net proceeds from offering of the 2022 Notes were used to repay certain indebtedness of LIN Media in connection with the LIN Merger, including the satisfaction and discharge of LIN Television’s $200 million aggregate principal amount of 8.375% Senior Notes due 2018 and the payment of related fees and expenses. The 2022 Notes were issued under an indenture, dated as of November 5, 2014 (the “2022 Notes Indenture”). New Media General, as the new direct parent of LIN Television, and certain of the wholly owned subsidiaries of LIN Television provide full and unconditional guarantees to the 2022 Notes, on a senior basis.
 

10



2021 Notes
 
LIN Television’s previously issued 6.375% Senior Notes due 2021 with an aggregate principal amount outstanding of $290 million remained outstanding as of the Closing Date (the “2021 Notes”). Following the consummation of the LIN Merger, New Media General, as the new direct parent of LIN Television, and certain of the wholly owned subsidiaries of LIN Television provide full and unconditional guarantees of the 2021 Notes, on a senior basis.

 
Fair Value
 
The following table includes information about the carrying values and estimated fair values of the Company’s financial instruments at June 30, 2015, and December 31, 2014:
 
 
June 30, 2015
 
December 31, 2014
 
Carrying
 
Fair
 
Carrying
 
Fair
(In thousands)
Amount
 
Value
 
Amount
 
Value
Assets:
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
Trading securities
$
449

 
$
449

 
$
449

 
$
449

Liabilities:
 
 
 
 
 
 
 
Long-term debt:
 
 
 
 
 
 
 
Media General Credit Agreement
1,556,670

 
1,555,388

 
1,690,753

 
1,686,000

2022 Notes
398,163

 
395,357

 
398,038

 
397,000

2021 Notes
291,342

 
300,875

 
291,442

 
289,000

Shield Media Credit Agreement
28,400

 
28,400

 
29,600

 
29,600

Other borrowings
1,524

 
1,524

 
2,111

 
2,111

 
Trading securities held by the Supplemental 401(k) Plan are carried at fair value and are determined by reference to quoted market prices.
 
The fair value of the 2021 Notes was determined by reference to the most recent trading prices. The fair value of all other debt instruments were determined using discounted cash flow analysis' and an estimate of the current borrowing rate.
 
Under the fair value hierarchy, the Company’s trading securities fall under Level 1 (quoted prices in active markets), the 2021 Notes fall under Level 2 (other observable inputs) and the Media General Credit Agreement, 2022 Notes, Shield Media Credit Agreement and the Other Borrowings fall under Level 3 (unobservable inputs).

Note 6: Taxes on Income
 
The effective tax rate was 43.3% in the second quarter of 2015 as compared to 44.5% in the second quarter of 2014 and 69.6% in the first six months of 2015 as compared 42.7% in the equivalent prior-year period.  The high tax rate in both periods was due primarily to the relative dollar amount of merger-related expenses (a significant portion of which will not be deductible) and other permanent book-tax differences, as compared to much lower levels of pre-tax income.  The tax expense in both years was predominantly non-cash due to the Company’s interim net loss for tax purposes and significant net operating loss carryover.  Current tax expense was approximately $1.3 million and $0.2 million in the second quarter of 2015 and 2014 respectively and was approximately $1.5 million and $0.3 million in the first six months of 2015, and 2014, respectively; it was attributable to state income taxes.

 

11




Note 7: Earnings Per Share
 
The following table sets forth the computation of basic and diluted income per share for the three and six months ended June 30, 2015, and 2014:
 
 
Three Months Ended June 30, 2015
 
Three Months Ended June 30, 2014
(In thousands, except
Income
 
Shares
 
Per Share
 
Income
 
Shares
 
Per Share
per share amounts)
(Numerator)
 
(Denominator)
 
Amount
 
(Numerator)
 
(Denominator)
 
Amount
Net income attributable to Media General
$
1,635

 
 

 
 

 
$
6,786

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Undistributed earnings attributable to participating securities
(4
)
 
 

 
 

 
(43
)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
 
 
 
 
 
 
 
 
 
 
 
Income attributable to common stockholders
$
1,631

 
129,201

 
$
0.01

 
$
6,743

 
88,473

 
$
0.08

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
Stock options and warrants


 
1,435

 


 
 
 
519

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted EPS
 
 
 
 
 
 
 
 
 
 
 
Income attributable to common stockholders
$
1,631

 
130,636

 
$
0.01

 
$
6,743

 
88,992

 
$
0.08

 
 
Six Months Ended June 30, 2015
 
Six Months Ended June 30, 2014
(In thousands, except
Income
 
Shares
 
Per Share
 
Income
 
Shares
 
Per Share
per share amounts)
(Numerator)
 
(Denominator)
 
Amount
 
(Numerator)
 
(Denominator)
 
Amount
Net income (loss) attributable to Media General
$
(5,798
)
 
 

 
 

 
$
12,171

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Undistributed earnings attributable to participating securities

 
 

 
 

 
(84
)
 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
 
 
 
 
 
 
 
 
 
 
 
Income (loss) attributable to common stockholders
$
(5,798
)
 
129,275

 
$
(0.04
)
 
$
12,087

 
88,399

 
$
0.14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
Stock options and warrants
 

 

 
 

 
 

 
512

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Diluted EPS
 
 
 
 
 
 
 
 
 
 
 
Income (loss) attributable to common stockholders
$
(5,798
)
 
129,275

 
$
(0.04
)
 
$
12,087

 
88,911

 
$
0.14


We have excluded 1.5 million of common shares issuable for share options and restricted shares from the calculation of diluted earnings per share for the six months ended June 30, 2015 because the net loss causes these shares to be anti-dilutive.

12



Note 8: Retirement and Postretirement Plans
 
The Company has a funded, qualified non-contributory defined benefit retirement plan which covers substantially all Legacy Media General employees hired before 2007 and IBEW Local 45 employees of KRON-TV with benefits which vested prior to 2006, as well as a non-contributory unfunded supplemental executive retirement and ERISA excess plans which supplement the coverage available to certain executives. These retirement plans are frozen.
 
In conjunction with the LIN Merger, the Company assumed liability for an additional defined benefit retirement plan as well as a supplemental retirement plan. Both plans are frozen. The Company is required to make contributions to the supplemental retirement plan for the then eligible employees and certain other employees based on 5% of each participant’s eligible compensation.
 
The Company also has a retiree medical savings account plan which reimburses eligible employees who retire for certain medical expenses. In addition, the Company has an unfunded plan that provides certain health and life insurance benefits to retired employees who were hired prior to 1992.
 
The following tables provide the components of net periodic benefit cost (income) for the Company’s benefit plans for the second quarters and first six months of 2015 and 2014:

 
Three Months Ended
 
Pension Benefits
 
Other Benefits
(In thousands)
June 30,
2015
 
June 30,
2014
 
June 30,
2015
 
June 30,
2014
Service cost
$

 
$
43

 
$
40

 
$
18

Interest cost
4,056

 
5,554

 
390

 
277

Expected return on plan assets
(5,472
)
 
(6,762
)
 

 

Amortization of net loss
142

 

 

 

Net periodic benefit (income) cost
$
(1,274
)
 
$
(1,165
)
 
$
430

 
$
295


 
Six Months Ended
 
Pension Benefits
 
Other Benefits
(In thousands)
June 30,
2015
 
June 30,
2014
 
June 30,
2015
 
June 30,
2014
Service cost
$

 
$
85

 
$
50

 
$
40

Interest cost
11,456

 
11,060

 
500

 
538

Expected return on plan assets
(15,453
)
 
(13,433
)
 

 

Amortization of net loss
400

 

 

 

Net periodic benefit (income) cost
$
(3,597
)
 
$
(2,288
)
 
$
550

 
$
578



13




Note 9: Stockholders’ Equity
 
The following table shows the components of the Company’s stockholders’ equity as of and for the six months ended June 30, 2015:
 
 
 
 
 
 
Accumulated
Other
 
 
 
Total
 
Common Stock
 
Comprehensive
 
Retained
 
Stockholders'
(In thousands)
Voting
 
Non-Voting
 
Income
 
Earnings
 
Equity
Balance at December 31, 2014
$
1,322,284

 
$

 
$
(36,445
)
 
$
214,582

 
$
1,500,421

Net income attributable to Media General

 

 

 
(5,798
)
 
(5,798
)
Exercise of stock options
1,211

 

 

 

 
1,211

Stock-based compensation
6,860

 

 

 

 
6,860

Revaluation of redeemable noncontrolling interest

 

 

 
(1,431
)
 
(1,431
)
Repurchases of Voting Common Stock
(18,747
)
 

 

 

 
(18,747
)
Other
(467
)
 

 

 

 
(467
)
Balance at June 30, 2015
$
1,311,141

 
$

 
$
(36,445
)
 
$
207,353

 
$
1,482,049


The following table shows the components of the Company’s stockholders’ equity as of and for the six months ended June 30, 2014:

 
 
 
 
 
Accumulated
Other
 
 
 
Total
 
Common Stock
 
Comprehensive
 
Retained
 
Stockholders'
(In thousands)
Voting
 
Non-Voting
 
Loss
 
Earnings
 
Equity
Balance at December 31, 2013
$
557,754

 
$
12,483

 
$
5,668

 
$
161,076

 
$
736,981

Net income attributable to Media General

 

 

 
12,171

 
12,171

Conversion of non-voting to voting common stock
2,102

 
(2,102
)
 

 

 

Exercise of stock options
472

 

 

 

 
472

Stock-based compensation
1,889

 

 

 

 
1,889

Director deferred stock units
7,361

 

 

 

 
7,361

Other
(84
)
 

 

 

 
(84
)
Balance at June 30, 2014
$
569,494

 
$
10,381

 
$
5,668

 
$
173,247

 
$
758,790

 

14




Note 10: Other
 
During the second quarter of 2015 the Company repurchased 1.1 million shares of its outstanding voting common stock at an average price of $16.44 for $19 million under the share repurchase program approved by the Board of Directors of the Company. The share repurchase program expires on December 31, 2015.

The Company received $120 million of restricted cash in a qualified intermediary (a consolidated entity) from the 2014 sale of the WJAR-TV station discussed in Note 2. In June of 2015, the restricted cash was released from the qualified intermediary and remitted to the Company.

In April 2015, the Company acquired the remaining noncontrolling interest in the Dedicated Media subsidiary for a purchase price of $11 million. As a result of the transaction, Dedicated Media was 100% owned by the Company during the second quarter of 2015.

The Company also recorded $2.5 million and $5.6 million of non-operating gains in the three and six month periods ended June 30, 2015, respectively, related to the relocation of broadcast channels in the Lansing, Michigan and Austin, Texas markets.
 

Note 11: Guarantor Financial Information
 
LIN Television, a 100% owned subsidiary of New Media General, is the primary obligor of the 2021 Notes and 2022 Notes. New Media General fully and unconditionally guarantees all of LIN Television’s obligations under the 2021 Notes and the 2022 Notes on a joint and several basis. Additionally, all of the consolidated 100% owned subsidiaries of LIN Television fully and unconditionally guarantee LIN Television’s obligations under the 2021 Notes and 2022 Notes on a joint and several basis. There are certain limitations in the ability of the subsidiaries to pay dividends to New Media General. The following financial information presents condensed consolidating balance sheets, statements of operations, and statements of cash flows for New Media General, LIN Television (as the issuer), the Guarantor Subsidiaries, and the Non-Guarantor Subsidiaries, together with certain eliminations.


15



Media General, Inc.
Condensed Consolidating Balance Sheet
June 30, 2015
(in thousands)
 
New Media General
 
LIN Television Corporation
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$
13,962

 
$
46,599

 
$
11,517

 
$

 
$
72,078

Trade accounts receivable, net

 
55,161

 
175,769

 
15,365

 

 
246,295

Current deferred tax asset

 

 
51,692

 
40

 

 
51,732

Prepaid expenses and other current assets

 
7,929

 
21,576

 
7,234

 

 
36,739

Total current assets

 
77,052

 
295,636

 
34,156

 

 
406,844

Property and equipment, net

 
175,014

 
304,609

 
3,958

 

 
483,581

Other assets, net

 
13,946

 
55,230

 
2,114

 

 
71,290

Definite lived intangible assets, net

 
384,620

 
483,859

 
44,008

 

 
912,487

Broadcast licenses

 

 
1,025,800

 
71,300

 

 
1,097,100

Goodwill

 
527,077

 
977,570

 
92,839

 

 
1,597,486

Advances to consolidated subsidiaries

 
(157,217
)
 
166,231

 
(9,014
)
 

 

Investment in consolidated subsidiaries
1,482,049

 
1,313,747

 

 

 
(2,795,796
)
 

Total assets
$
1,482,049

 
$
2,334,239

 
$
3,308,935

 
$
239,361

 
$
(2,795,796
)
 
$
4,568,788

 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$

 
$
3,642

 
$
28,225

 
$
1,426

 
$

 
$
33,293

Accrued salaries and wages

 
5,604

 
18,606

 
612

 

 
24,822

Other accrued expenses and other current liabilities

 
27,296

 
77,372

 
4,272

 

 
108,940

Current installments of long-term debt

 

 

 
3,404

 

 
3,404

Current installments of obligation under capital leases

 
520

 
290

 
46

 

 
856

Total current liabilities

 
37,062

 
124,493

 
9,760

 

 
171,315

Long-term debt

 
689,505

 
1,556,670

 
26,520

 

 
2,272,695

Deferred tax liability and other long-term tax liabilities

 
73,090

 
286,877

 
(738
)
 

 
359,229

Long-term capital lease obligations

 
13,242

 
1,182

 
12

 

 
14,436

Retirement and postretirement plans

 
34,785

 
168,209

 

 

 
202,994

Other liabilities

 
4,506

 
28,407

 
2,092

 

 
35,005

Total liabilities

 
852,190

 
2,165,838

 
37,646

 

 
3,055,674

 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interests

 

 

 
31,065

 

 
31,065

 
 
 
 
 
 
 
 
 
 
 
 
Total stockholders (deficit) equity
1,482,049

 
1,482,049

 
1,143,097

 
170,650

 
(2,795,796
)
 
1,482,049

Total liabilities, noncontrolling interest and stockholders' equity (deficit)
$
1,482,049

 
$
2,334,239

 
$
3,308,935

 
$
239,361

 
$
(2,795,796
)
 
$
4,568,788



16



Media General, Inc.
Condensed Consolidating Balance Sheet
December 31, 2014
(in thousands)
 
New Media General
 
LIN Television Corporation
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
2,388

 
$
9,658

 
$
27,371

 
$
4,503

 
$

 
$
43,920

Trade accounts receivable, net

 
82,909

 
168,862

 
13,398

 

 
265,169

Restricted cash at qualified intermediary


 


 
119,903

 


 


 
119,903

Current deferred tax asset

 
3,492

 
52,222

 
40

 

 
55,754

Prepaid expenses and other current assets

 
18,724

 
11,396

 
8,978

 

 
39,098

Total current assets
2,388

 
114,783

 
379,754

 
26,919

 

 
523,844

Property and equipment, net

 
179,057

 
314,534

 
5,881

 

 
499,472

Other assets, net

 
8,565

 
67,961

 
2,473

 

 
78,999

Definite lived intangible assets, net

 
403,866

 
506,619

 
45,815

 

 
956,300

Broadcast licenses

 

 
1,025,800

 
71,300

 

 
1,097,100

Goodwill

 
527,077

 
977,570

 
92,839

 

 
1,597,486

Advances to consolidated subsidiaries
2,021

 
(456,741
)
 
456,359

 
(1,639
)
 


 

Investment in consolidated subsidiaries
1,496,012

 
1,319,033

 

 

 
(2,815,045
)
 

Total assets
$
1,500,421

 
$
2,095,640

 
$
3,728,597

 
$
243,588

 
$
(2,815,045
)
 
$
4,753,201

 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Trade accounts payable
$

 
$
4,014

 
$
31,794

 
$
551

 
$

 
$
36,359

Accrued salaries and wages

 
9,384

 
26,536

 
714

 

 
36,634

Other accrued expenses and other current liabilities

 
43,901

 
53,042

 
7,149

 

 
104,092

Current installments of long-term debt

 

 
8,218

 
3,563

 

 
11,781

Current installments of obligation under capital leases

 
441

 
303

 
71

 

 
815

Total current liabilities

 
57,740

 
119,893

 
12,048

 

 
189,681

Long-term debt

 
291,442

 
2,080,570

 
28,150

 

 
2,400,162

Deferred tax liability and other long-term tax liabilities

 
193,293

 
168,171

 
2,825

 

 
364,289

Long-term capital lease obligations

 
13,529

 
1,312

 
28

 

 
14,869

Retirement and postretirement plans

 
33,031

 
178,233

 

 

 
211,264

Other liabilities

 
10,593

 
22,037

 
5,404

 

 
38,034

Total liabilities

 
599,628

 
2,570,216

 
48,455

 

 
3,218,299

 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interests

 

 
10,981

 
23,500

 

 
34,481

 
 
 
 
 
 
 
 
 
 
 
 
Total stockholders (deficit) equity
1,500,421

 
1,496,012

 
1,147,400

 
171,633

 
(2,815,045
)
 
1,500,421

Total liabilities, noncontrolling interest and stockholders' equity (deficit)
$
1,500,421

 
$
2,095,640

 
$
3,728,597

 
$
243,588

 
$
(2,815,045
)
 
$
4,753,201


17



Media General, Inc.
Condensed Consolidated Statement of Comprehensive Income
For the Three Months Ended June 30, 2015
(in thousands)
 
New Media General
 
LIN Television Corporation
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net operating revenue
$

 
$
94,258

 
$
216,770

 
$
16,941

 
$
(7,446
)