2 0 2 4 A N N U A L R E P O R T
Creating Value
Through Connection
F I N A N C I A L H I G H L I G H T S
$1,000
$1,500
$2,000
$3,000
$2,500
$500
2022
2023
$2,293
$2,510
$2,453
2024
$0
Scripps
Networks
33%
Other
1%
Local
Media
66%
Operating Revenues
(Dollars in millions)
Operating Revenues By Segment
Operating Results
(Dollars in millions)
2022
2023
2024
Consolidated
Operating revenues
$2,453
$2,293
$2,510
Operating income (loss)
428
(753)
412
Net income (loss)
196
(948)
146
Local Media
Segment operating revenues
1,494
1,398
1,674
Segment profit
386
287
513
Scripps Networks
Segment operating revenues
961
893
836
Segment profit
310
226
190
Other
Segment operating revenues
15
19
19
Segment profit (loss)
(18)
(26)
(32)
To our shareholders:
As we reflect on the achievements of 2024, I am proud
to report that The E.W. Scripps Company successfully
navigated a transformative year – enhancing our near-
term financial performance and positioning ourselves to
create new value in the media ecosystem of the future.
We benefited from the reliance of American political
candidates and campaigns on the reach and neutrality of
local broadcast television; we leveraged that cash influx
to pay down debt; and we strategically reduced our
expense structure, creating operational improvements
that will continue throughout 2025.
In our Local Media division, we captured $343 million in political advertising revenue for the presidential
election year, a significant increase from our previous record of $265 million in 2020 and a testament to the
central role local broadcasters play in our nation’s election spending cycles. Our expansion into local sports
rights continued with Scripps Sports signing the newest Stanley Cup champions, the Florida Panthers – joining
the NHL’s Utah Hockey Club and the Vegas Golden Knights and Big Sky Conference.
In the Scripps Networks division, our first, in-person upfront event was a resounding success, marking Scripps’
reintroduction to the national advertising marketplace and showcasing our portfolio of premium live sports,
entertainment programming and news. Despite a challenging advertising marketplace, our upfront strategy
drove advertiser commitment to Scripps across time periods, networks and platforms. We saw exceptional
demand for sports programming and connected TV inventory, which saw a remarkable 164% increase in
upfront revenue.
We continued to solidify our commitment to women’s sports with the inaugural season of the National
Women’s Soccer League (NWSL) on ION along with record viewership and revenue growth for the Women’s
National Basketball Association (WNBA) on ION in its second year on our network. And to further drive
fandom for these leagues, we unveiled a studio in Atlanta dedicated to telling the stories of the players and
teams of the WNBA and NWSL through pre-game, half-time and post-game shows. No other broadcaster has
been willing to dedicate two franchise nights to women’s sports like Scripps and ION, and this commitment to
showcase the league, teams and players in an unparalleled way is paying off – validated by both our upfront
results and the new-to-Scripps advertisers we welcomed through these broadcasts. Our Friday and Saturday
night franchise telecasts of the WNBA and the NWSL saw many big brands advertising with us for the first
time – more than two dozen in 2024.
L E T T E R T O S H A R E H O L D E R S
Adam Symson, President and Chief Executive Officer
Looking ahead to 2025, our priorities are clear. We will aggressively improve our financial performance while
positioning the company for future growth. Our commitment to live sports will remain an important element
of our plan to grow revenue and drive shareholder value – tapping into sports’ enduring capacity to captivate
and connect viewers and attract advertisers. Our growing connected TV presence and leadership in the over-
the-air space set us apart in the marketplace. By providing premium programming through a free, over-the-air
solution, we are directly addressing the cord-cutting trends that have left many sports and entertainment fans
disconnected and fatigued by rising subscription costs.
While our broadcast spectrum primarily serves our television business today, it presents additional revenue
potential through the advanced ATSC 3.0 standard and emerging datacasting marketplace in partnership with
several other local broadcasters through the EdgeBeam joint venture. Additionally, we aim to unlock Tablo’s
significant potential as an advertising and data platform as well as a marketing mechanism for our broadcast
channels and free, ad-supported streaming TV channels.
And at the heart of our efforts lies our dedication to creating connection. Our newly articulated company
vision, “We create connection,” reflects our company’s legacy while setting meaningful direction for our future
as we adapt to an ever-evolving media landscape. This guiding principle is central to our business strategies,
which aim to harness our strengths in journalism, live sports and premium entertainment while solidifying our
role as a vital connector within the communities we serve.
By fostering connection across our businesses and across the country, we will create significant value for our
shareholders and make ourselves even more indispensable to the audiences we serve.
Thank you for your ongoing support of The E.W. Scripps Company. Together, we look forward to a future
filled with new opportunities and fruitful connections.
Sincerely,
Adam P. Symson
President and Chief Executive Officer
March 2025
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
☑
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2024
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 001-10701
THE E.W. SCRIPPS COMPANY
(Exact name of registrant as specified in its charter)
Ohio
31-1223339
(State or other jurisdiction of
incorporation or organization)
(IRS Employer
Identification Number)
312 Walnut Street
Cincinnati, Ohio
45202
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (513) 977-3000
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share
SSP
NASDAQ Global Select Market
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ☐ No ☑
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes ☐ No ☑
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 (§ 232.405 of this chapter) 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 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 has filed a report on and attestation to its management's assessment of the effectiveness of its internal control
over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its
audit report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing
reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by
any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑
The aggregate market value of Class A Common shares of the registrant held by non-affiliates of the registrant, based on the $3.14 per share closing price for
such stock on June 30, 2024, was approximately $184,000,000. All Class A Common shares beneficially held by executives and directors of the registrant and
descendants of Edward W. Scripps have been deemed, solely for the purpose of the foregoing calculation, to be held by affiliates of the registrant. There is no
active market for our Common Voting shares.
As of February 28, 2025, there were 74,768,282 of the registrant’s Class A Common shares, $0.01 par value per share, outstanding and 11,932,722 of the
registrant’s Common Voting shares, $0.01 par value per share, outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Certain information required for Part III of this report is incorporated herein by reference to the proxy statement for the 2025 annual meeting of shareholders.
Index to The E.W. Scripps Company Annual Report
on Form 10-K for the Year Ended December 31, 2024
Item No.
Page
Additional Information
3
Forward-Looking Statements
3
PART I
1. Business
4
1A. Risk Factors
14
1B. Unresolved Staff Comments
21
1C. Cybersecurity
21
2. Properties
22
3. Legal Proceedings
22
4. Mine Safety Disclosures
22
Executive Officers of the Company
23
PART II
5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities
23
6. [Reserved]
24
7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
24
7A. Quantitative and Qualitative Disclosures About Market Risk
24
8. Financial Statements and Supplementary Data
24
9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
24
9A. Controls and Procedures
25
9B. Other Information
25
9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
25
PART III
10. Directors, Executive Officers and Corporate Governance
25
11. Executive Compensation
25
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
25
13. Certain Relationships and Related Transactions, and Director Independence
25
14. Principal Accounting Fees and Services
25
PART IV
15. Exhibits and Financial Statement Schedules
26
16. Form 10-K Summary
28
2
As used in this Annual Report on Form 10-K, the terms “Scripps,” “Company,” “we,” “our” or “us” may, depending on
the context, refer to The E.W. Scripps Company, to one or more of its consolidated subsidiary companies, or to all of them
taken as a whole.
Additional Information
Our Company website is http://www.scripps.com. Copies of all of our SEC filings filed or furnished pursuant to Section
13(a) or 15(d) of the Securities Exchange Act of 1934 are available free of charge on this website as soon as reasonably
practicable after we electronically file the material with, or furnish it to, the SEC. Our website also includes copies of the
charters for our Compensation & Talent Management, Nominating & Governance and Audit Committees, our Corporate
Governance Principles, our Insider Trading Policy, our Ethics Policy and our Code of Ethics for the CEO and Senior Financial
Officers. All of these documents are also available to shareholders in print upon request or by request via e-mail to
secretary@scripps.com.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "believe,"
"anticipate," "intend," "expect," "estimate," "could," "should," "outlook," "guidance," and similar references to future periods.
Examples of forward-looking statements include, among others, statements the Company makes regarding expected operating
results and future financial condition. Forward-looking statements are neither historical facts nor assurances of future
performance. Instead, they are based only on management’s current beliefs, expectations, and assumptions regarding the future
of the industry and the economy, the Company’s plans and strategies, anticipated events and trends, and other future conditions.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties, and changes in
circumstance that are difficult to predict and many of which are outside of the Company’s control. A detailed discussion of such
risks and uncertainties is included in the section of this document titled "Risk Factors." The Company’s actual results and
financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely
on any of these forward-looking statements. Any forward-looking statement made in this document is based only on currently
available information and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly
update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new
information, future developments, or otherwise.
3
PART I
Item 1.
Business
Founded in 1878, The E.W. Scripps Company motto is "Give light and the people will find their own way." Our vision
statement is We Create Connection. We serve audiences and businesses through a portfolio of more than 60 local television
stations in more than 40 markets and national news and entertainment networks. Our local stations have programming
agreements with ABC, NBC, CBS and FOX. The Scripps Networks reach nearly every American through national news outlets
Scripps News and Court TV and popular entertainment brands ION, Bounce, Grit, ION Mystery, ION Plus and Laff. We also
serve as the longtime steward of one of the nation's largest, most successful and longest-running educational programs, the
Scripps National Spelling Bee. Additionally, we provide a television viewing device called Tablo that allows households to
watch and record dozens of free, over-the-air and streaming channels anywhere in their home without a subscription. For a full
listing of our brands, visit http://www.scripps.com.
Scripps is a leader in free, ad-supported television. All of our local stations and national entertainment networks reach
consumers over the air, and all of our television brands can also be found on free streaming platforms. We have continued to
expand in the fast-growing connected television marketplace, and we are leveraging our leadership position in the growing
over-the-air marketplace. Currently, one in three non pay-TV homes is watching television over the air alongside their
streaming subscription services, and as cord-cutting and streaming service price increases continue, over-the-air channels will
be an important part of television viewers' choices. To that end, Scripps continues efforts to broaden antenna use even more and
is working with key partners in retail, manufacturing and antenna installation to help television owners understand the quality
and quantity of programming available over the air and the ease of antenna use.
In January 2023, we announced a strategic restructuring and reorganization of the Company to further leverage our strong
position in the U.S. television ecosystem and propel our growth across new distribution platforms and emerging media
marketplaces. The strategic restructuring and reorganization created a leaner and more agile operating structure through the
centralization of certain services and the consolidation of layers of management across our operating businesses and corporate
office. This initial reorganization of the operating structure was substantially completed by the end of the 2024 second quarter
and resulted in more than $40 million in annual savings, of which $20 million of the annualized savings was achieved by the
end of 2023. We also have continued to identify efficiency opportunities within the functional departments of our organization,
which resulted in additional restructuring charges over the last two quarters of 2024.
In April 2024, we began a public process to explore the sale of our Bounce multi-cast television network. Bounce, which
is available in approximately 95% of U.S. television broadcast homes, broadcasts a combination of syndicated shows, movies
and original content that is created for Black audiences.
On July 2, 2024, we announced a multi-year agreement with the National Hockey League's Florida Panthers ("Panthers"),
which began with the 2024-2025 season. Under the new agreement, we have the ability to televise all locally produced Panthers
preseason, regular-season and round one games of the postseason with distribution on cable, satellite and over-the-air
television.
On September 27, 2024, we announced plans to significantly reduce Scripps News' national network programming
beginning in the fourth quarter of 2024. As of November 15, 2024, Scripps News was no longer broadcast over the air, although
it remained on streaming and digital platforms with weekday live coverage from the field. Beginning at the start of 2025, the
scaled back Scripps News operation is expected to generate annualized net savings of $35 million.
In January 2025, we announced the formation of a joint venture with Gray Media, Nexstar Media Group, Inc. and
Sinclair, Inc. Leveraging broadcasters’ uniquely efficient network architecture and the ATSC 3.0 transmission standard,
EdgeBeam Wireless, LLC will provide expansive, reliable and secure data delivery services. This partnership creates a
spectrum footprint that no individual broadcaster could achieve on its own, unlocking the potential of ATSC 3.0 to offer
nationwide coverage for data delivery to billions of potential devices on market-disrupting terms. We contributed cash
consideration of $6.4 million for our 25% ownership interest in the joint venture.
On March 10, 2025, we entered into a Transaction Support Agreement (“TSA”) that was reached with certain of the
Company’s lenders. Concurrently, we entered into commitment letters to provide for a new accounts receivable securitization
facility and a new revolving credit facility. Transactions contemplated by the TSA and commitment letters, which still need to
be consummated, include, among others, entering into new revolving credit and asset securitization facilities and the exchange
or repayment of certain of our existing term loans.
4
Financial information for each of our operating segments can be found under “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and the Notes to Consolidated Financial Statements of this Form 10-K.
LOCAL MEDIA
Our Local Media segment includes more than 60 local television stations and their related digital operations. We have
operated broadcast television stations since 1947, when we launched Ohio’s first television station, WEWS, in Cleveland. Our
television station group reaches approximately 25% of the nation’s television households and includes 18 ABC affiliates, 11
NBC affiliates, nine CBS affiliates and four FOX affiliates. We also have 11 independent stations and 10 additional low power
stations.
We provide free over-the-air news, information, sports and entertainment content that informs and engages our local
communities. We distribute our content on multiple platforms, including broadcast, digital, mobile, social and over-the-top
("OTT"). It is our objective to develop content and applications designed to enhance the user experience on each of those
platforms. Our ability to cover our communities across various digital platforms allows us to expand our audiences beyond
traditional broadcast television.
We believe the most critical component of our product mix is compelling news content, which is an important link to the
community and aids our stations' efforts to retain and expand viewership. We have trained employees in our news departments
to be multi-media journalists, allowing us to pursue a “hyper-local” strategy by having more reporters covering local news for
our over-the-air and digital platforms.
In addition to news programming, our television stations run network programming, local sporting events, syndicated
programming and original programming. Our strategy is to balance syndicated programming with original programming that
we control. We believe this strategy improves our Local Media division's financial performance. We also provide live, local
sporting events on many of our stations by acquiring local television broadcast rights for these events.
Revenue cycles and sources
Core Advertising
Our core advertising is comprised of sales to local and national businesses. The advertising includes a combination of
broadcast spots as well as digital and connected TV advertising. Our core advertising revenues accounted for 33% of our Local
Media segment’s revenues in 2024. Pricing of broadcast spot advertising is based on audience size and share, the demographics
of our audiences and the demand for our limited inventory of commercial time. Our stations compete for advertising revenues
with other sources of local media, including competitors’ television stations in the same markets, radio stations, cable television
systems, newspapers, digital platforms and direct mail.
Local advertising time is sold by each station’s local sales staff calling upon advertising agencies and local businesses,
which typically include advertisers such as car dealerships, health-care facilities, home improvement companies and other
service providers. We seek to attract new advertisers to our television stations and to increase the amount of advertising sold to
existing local advertisers by relying on experienced local sales forces with strong community ties, producing news and other
programming with local advertising appeal and sponsoring or promoting local events and activities.
National advertising time is generally sold by calling upon advertising agencies, whose clients typically include
businesses such as automobile manufacturers and dealer groups, telecommunications companies and insurance providers.
Digital revenues are primarily generated from the sale of advertising to local and national customers on our business
websites, tablet and mobile products, over-the-top apps and other platforms.
Cyclical factors influence revenues from our core advertising categories. Some of the cycles are periodic and known well
in advance, such as election campaign seasons and special programming events (e.g. the Olympics or the Super Bowl). For
example, our NBC affiliates currently benefit from incremental advertising demand from the coverage of the Olympics.
Economic cycles are less predictable and beyond our control.
Due to increased demand in the spring and holiday seasons, the second and fourth quarters normally have higher
advertising revenues than the first and third quarters.
5
Political Advertising
Political advertising is generally sold through our Washington, D.C. sales office. Advertising is sold to presidential,
gubernatorial, U.S. Senate and House of Representative candidates, as well as for state races and local issues. It is also sold to
political action groups (PACs) and other advocacy groups. Political advertising revenues were 20% of our Local Media
segment's revenues in 2024, an election year.
Political advertising revenues increase significantly during even-numbered years when local, state and federal elections
occur. In addition, every four years, political spending is typically elevated further due to the advertising for the presidential
election. Because of the cyclical nature of each political election cycle, there has been a significant difference in our operating
results when comparing the performance in even-numbered years to that in odd-numbered years. Additionally, our operating
results are impacted by the number, importance and competitiveness of individual political races and issues discussed in our
local markets.
Distribution Revenues
We earn revenues from cable operators, satellite carriers, other multi-channel video programming distributors
(collectively "MVPDs"), other online video distributors and subscribers for access rights to our local broadcast signals.
Distribution revenues were 46% of our Local Media segment's revenues in 2024. These arrangements are generally governed by
multi-year contracts and the fees we receive are typically based on the number of subscribers the respective distributor has in
our markets and the contracted rate per subscriber. During 2023, we completed renewal negotiations on distribution agreements
covering approximately 75% of our subscriber households.
Expenses
Employee costs accounted for 38% of our Local Media segment's costs and expenses in 2024.
We centralize certain functions, such as master control, traffic, graphics, research and political advertising, at company-
owned hubs that do not require a presence in the local markets. This approach enables each of our stations to focus local
resources on the creation of content and revenue-producing activities. We expect to continue to look for opportunities to
centralize functions that do not require a local market presence.
Programming costs, which include network affiliation fees, local sports rights fees, syndicated programming and shows
produced for us or in partnership with others, were 45% of our Local Media segment's costs and expenses in 2024.
Our network-affiliated stations broadcast programming is supplied to us by the Big 4 broadcast networks in various
dayparts. Under each affiliation agreement, the station broadcasts all of the programs transmitted by the network. In exchange,
we pay affiliation fees to the network, and the network sells a substantial majority of the advertising time during these
broadcasts. We expect our network affiliation agreements to be renewed upon expiration.
6
Information concerning our full-power television stations, their network affiliations and the markets in which they operate
is as follows:
Station
Market
Network Affiliation/
DTV Channel
Affiliation Agreement
Expires in
FCC License
Expires in
Market Rank(1)
KNXV-TV
Phoenix, AZ - Ch. 15
ABC/15
2026
2030
11
KASW -TV
Phoenix, AZ - Ch. 61
Ind/27
N/A
2030
11
WMYD-TV
Detroit, MI - Ch. 20
Ind/31
N/A
2029
12
WXYZ-TV
Detroit, MI - Ch. 7
ABC/25
2026
2029
12
WFTS-TV
Tampa-St. Petersburg, FL - Ch. 28
ABC/17
2026
2029
13
KMGH-TV
Denver-Aurora, CO - Ch. 7
ABC/7
2026
2030
16
KCDO-TV
Denver-Aurora, CO - Ch. 3
Ind/23
N/A
2030
16
WEWS-TV
Cleveland, OH - Ch. 5
ABC/15
2026
2029
17
WSFL-TV
Miami, FL - Ch. 39
Ind/27
N/A
2029
18
WMAR-TV
Baltimore, MD - Ch. 2
ABC/27
2026
2028
24
WRTV-TV
Indianapolis, IN - Ch. 6
ABC/25
2026
2029
27
KMCI-TV
Kansas City, MO - Ch. 38
Ind/25
N/A
2030
28
KSHB-TV
Kansas City, MO - Ch. 41
NBC/36
2027
2030
28
WTVF-TV
Nashville, TN - Ch. 5
CBS/36
2026
2029
29
WTMJ-TV
Milwaukee, WI - Ch. 4
NBC/32
2027
2029
31
KGTV-TV
San Diego, CA - Ch. 10
ABC/10
2026
2030
33
WCPO-TV
Cincinnati, OH - Ch. 9
ABC/26
2026
2029
34
KSTU-TV
Salt Lake City, UT - Ch. 13
FOX/28
2025
2030
36
KUPX-TV
Salt Lake City, UT - Ch. 16
Ind/29
N/A
2030
36
WPTV-TV
West Palm Beach-Port St. Lucie, FL - Ch. 5
NBC/12
2027
2029
37
WHDT-TV
West Palm Beach-Port St. Lucie, FL - Ch. 9
Ind/34
N/A
2029
37
KTNV-TV
Las Vegas, NV - Ch. 13
ABC/13
2026
2030
41
KMCC-TV
Las Vegas, NV - Ch. 34
Ind/32
N/A
2030
41
WGNT-TV
Norfolk-Virginia Beach, VA - Ch. 27
Ind/20
N/A
2028
42
WTKR-TV
Norfolk-Virginia Beach, VA - Ch. 3
CBS/16
2025
2028
42
WXMI-TV
Grand Rapids-Kalamazoo, MI - Ch. 17
FOX/19
2025
2029
43
WKBW-TV
Buffalo, NY - Ch. 7
ABC/34
2026
2031
49
WFTX-TV
Ft. Myers-Cape Coral, FL - Ch. 36
FOX/34
2025
2029
51
WTVR-TV
Richmond, VA - Ch. 6
CBS/23
2025
2028
55
KJRH-TV
Tulsa, OK - Ch. 2
NBC/8
2027
2030
62
WGBA-TV
Green Bay-Appleton, WI - Ch. 26
NBC/14
2027
2029
63
WACY-TV
Green Bay-Appleton, WI - Ch. 32
Ind/36
N/A
2029
63
WLEX-TV
Lexington, KY - Ch. 18
NBC/28
2027
2029
65
KMTV-TV
Omaha, NE - Ch. 3
CBS/31
2025
2030
68
KWBA-TV
Tucson, AZ - Ch. 58
Ind/21
N/A
2030
73
KGUN-TV
Tucson, AZ - Ch. 9
ABC/9
2026
2030
73
KOAA-TV
Colorado Springs, CO - Ch. 5
NBC/25
2027
2030
83
KXXV-TV
Waco-Killeen, TX - Ch. 25
ABC/26
2026
2030
91
KIVI-TV
Boise, ID - Ch. 6
ABC/24
2026
2030
107
WSYM-TV
Lansing, MI - Ch. 47
FOX/28
2025
2029
112
WTXL-TV
Tallahassee-Thomasville, FL-GA - Ch. 27
ABC/27
2026
2029
118
KERO-TV
Bakersfield, CA - Ch. 23
ABC/10
2026
2030
121
KATC-TV
Lafayette, LA - Ch. 3
ABC/28
2026
2029
124
KSBY-TV
Santa Barbara-Santa Maria, CA - Ch. 6
NBC/15
2027
2030
130
KRIS-TV
Corpus Christi, TX - Ch. 6
NBC/26
2027
2030
135
KTVQ-TV
Billings, MT - Ch. 2
CBS/10
2026
2030
164
KPAX-TV
Missoula, MT - Ch. 8
CBS/7
2026
2030
167
KXLF-TV
Butte-Bozeman-Silver Bow, MT - Ch. 4
CBS/5
2026
2030
187
KRTV-TV
Great Falls, MT - Ch. 3
CBS/7
2026
2030
193
KTVH-TV
Helena, MT - Ch. 12
NBC/12
2027
2030
204
(1) Market rank is based on the 2024 Comscore HH Universe estimates.
7
SCRIPPS NETWORKS
Our Scripps Networks segment includes national news outlets Scripps News and Court TV as well as popular
entertainment brands ION, Bounce, Grit, ION Mystery, ION Plus and Laff. The networks reach nearly every U.S. television
home through free over-the-air broadcast, cable/satellite, connected TV and/or digital distribution.
The segment generates revenue principally from the sale of advertising time on the national television networks.
Advertising revenue generated by our networks depends on viewership ratings and advertising rates paid by advertisers for
delivery of advertisements to certain viewer demographics. Advertising revenue is sold in the upfront, scatter (together called
general market), direct response and connected TV markets. In the upfront market, advertisers buy advertising time for
upcoming seasons and, by committing to purchase in advance, lock in the advertising rates they will pay for the upcoming year.
In the scatter market, advertisers buy their spots closer to the time when the spots will run. The mix of upfront and scatter
market advertising time sold is based upon the economic conditions at the time the sales take place, impacting the sell-out levels
management is willing or able to obtain. The demand in the scatter market then impacts the pricing achieved for our remaining
general market advertising inventory. Scatter market pricing can vary from upfront pricing and can be volatile. In most cases,
advertising sales in the upfront and scatter markets are subject to ratings guarantees that require us to provide additional
advertising time if the guaranteed audience levels are not achieved. Similar to the scatter market, direct response advertisers buy
their spots closer to the time when the spots will run, and pricing can vary based on demand. Direct response advertisers buy
spots based on expected performance, giving advertisers an efficient and measured way to reach their customers. Direct
response advertising is not subject to ratings guarantees.
Revenue from advertising is subject to seasonality, market-based variations and general economic conditions. Due to
increased demand in the spring and holiday seasons, the second and fourth quarters normally have higher advertising revenues
than the first and third quarters.
Programming expenses, employee costs and sales and marketing expenses are the primary operating costs of our Scripps
Networks segment. Programming expenses accounted for 55% of our Scripps Networks segment's costs and expenses in 2024,
reflecting the costs of investing in quality programming, costs of distribution from carriage agreements with local television
broadcasters and cable and satellite providers and costs of programming acquired under multi-year sports rights agreements.
The national networks are carried on both our owned and operated television stations and from carriage agreements with other
broadcast stations. Our over-the-air ("OTA") television networks are well-positioned to capitalize on cord-cutting trends and
provide a platform for delivering mass audiences to national advertisers.
ION
Our ION national television network is available in nearly 99% of U.S. television broadcast homes. It is available through
its owned and operated OTA broadcast TV stations, on pay TV platforms and independent broadcast affiliates that carry the
ION programming. ION broadcasts popular scripted crime and justice procedural programming and has the fifth-largest average
prime-time audience among all broadcast networks on television. ION generally elects government-mandated must-carry
provisions, thereby ensuring its programming is available on cable and satellite systems. ION is available as a free advertising-
supported streaming television ("FAST") channel with distribution across multiple streaming services.
Bounce
Bounce is available in approximately 95% of U.S. television broadcast homes. Bounce is an African American broadcast
network dedicated to inspiring, empowering and entertaining viewers. Bounce programming represents a rich mosaic of the
African American community, featuring both licensed and original dramas, sitcoms, movies and specials. Original
programming includes the hit series Johnson and Mind Your Business. Bounce XL is available as either an app or FAST
channel with distribution on multiple streaming services.
Court TV
Court TV is available in approximately 93% of U.S. television broadcast homes. Court TV is devoted to live, gavel-to-
gavel coverage, in-depth legal reporting and expert analysis of the nation's most important and compelling trials. Court TV is
available as either an app or FAST channel with distribution on multiple streaming services.
8
Grit
Grit is available in approximately 98% of U.S. television broadcast homes and appeals more strongly to male viewers.
Grit’s programming line-up is primarily iconic Western series and movies. Grit Xtra is available as a FAST channel with
distribution across multiple streaming services.
ION Mystery
ION Mystery is available in approximately 98% of U.S. television broadcast homes, and its programming is anchored in
popular true-crime and justice procedural programming. Programming on ION Mystery includes NCIS and CSI franchises. ION
Mystery is available as a FAST channel with distribution across multiple streaming services.
ION Plus
ION Plus is available in approximately 92% of U.S. television broadcast homes. The network features popular action and
suspense programming that includes Hudson & Rex, Bull, MacGyver and Scorpion. ION Plus is available as a FAST channel
with distribution across multiple streaming platforms.
Laff
Laff is available in approximately 98% of U.S. television broadcast homes and targets comedy-lovers in the 18 to 49 age
range. Programming on Laff includes popular sitcoms such as Home Improvement, Last Man Standing, Man with a Plan and
According to Jim. Laff More is available as a FAST channel with distribution across multiple streaming services.
Scripps News
Scripps News is our national streaming news channel focused on bringing objective, fact-based reporting and analysis on
world and national news, including politics, entertainment, science and technology. In November 2024, we stopped distribution
of the channel on over-the-air television. Scripps News is available on multiple streaming and digital platforms as either an app
or FAST channel. The network’s programming lineup includes The National Report, Morning Rush, Scripps News On The
Scene, Happening Now In America, Today as it Happened and Scripps News Showcase.
9
Information concerning our Scripps Networks FCC licensed television stations and the markets in which they operate is as
follows:
Station
Market
DTV
Channel
FCC License
Expires in
Market Rank(1)
WPXN
New York, NY
34
2031
1
KILM
Los Angeles, CA
24
2030
2
KPXN
Los Angeles, CA
24
2030
2
WCPX
Chicago, IL
34
2029
3
WPPX
Philadelphia, PA
34
2031
4
KPXD
Dallas-Ft. Worth, TX
25
2030
5
WPXW
Washington, DC
35
2028
6
WWPX
Washington, DC
13
2028
6
WBPX
Boston, MA
22
2031
7
WDPX
Boston, MA
22
2031
7
WPXG
Boston, MA
23
2031
7
WPXA
Atlanta, GA
16
2029
8
KKPX
San Francisco-San Jose, CA
33
2030
9
KPXB
Houston, TX
32
2030
10
WXPX
Tampa-St. Petersburg, FL
29
2029
13
KPXM
Minneapolis-St. Paul, MN
16
2030
14
KWPX
Seattle, WA
33
2031
15
WPXM
Miami, FL
21
2029
18
WOPX
Orlando, FL
14
2029
19
KSPX
Sacramento, CA
21
2030
20
WINP
Pittsburgh, PA
16
2031
22
WRBU
St. Louis, MO
28
2029
23
WFPX
Raleigh-Durham, NC
32
2028
25
WRPX
Raleigh-Durham, NC
32
2028
25
KPXG
Portland, OR
22
2031
26
WNPX
Nashville, TN
32
2029
29
WPXE
Milwaukee, WI
30
2029
31
WSFJ
Columbus, OH
19
2029
32
KPXL
San Antonio, TX
26
2030
35
WPXC
Jacksonville, FL
24
2029
44
WPXQ
Providence, RI
17
2031
50
WPXL
New Orleans, LA
33
2029
52
WQPX
Wilkes Barre-Scranton, PA
33
2031
57
WPXK
Knoxville, TN
18
2029
59
WKOI
Dayton, OH
31
2029
61
KTPX
Tulsa, OK
28
2030
62
KFPX
Des Moines, IA
36
2030
71
WIPL
Portland, ME
24
2031
74
WPXR
Roanoke-Lynchburg, VA
27
2028
75
WLPX
Charleston-Huntington, WV
18
2028
78
WZRB
Columbia, SC
25
2028
79
WSPX
Syracuse, NY
36
2031
82
KPXR
Cedar Rapids, IA
22
2030
85
WEPX
Greenville-Jacksonville, NC
36
2028
99
WPXU
Greenville-Jacksonville, NC
16
2028
99
WTPX
Wausau-Stevens Point, WI
19
2029
132
(1) Market rank is based on the 2024 Comscore HH Universe estimates.
10
Federal Regulation of Broadcasting — Broadcast television is subject to the jurisdiction of the FCC pursuant to the
Communications Act of 1934, as amended (“Communications Act”). The Communications Act prohibits the operation of
broadcast stations except in accordance with a license issued by the FCC and empowers the FCC to revoke, modify and renew
broadcast licenses, approve the transfer of control of any entity holding such a license, determine the location of stations,
regulate the equipment used by stations and adopt and enforce necessary regulations. As part of its obligation to ensure that
broadcast licensees serve the public interest, the FCC exercises limited authority over broadcast programming by, among other
things, requiring certain children's television programming and limiting commercial content therein, requiring the identification
of program sponsors, including specific rules related to identifying programming sponsored or provided by foreign
governments, regulating the sale of political advertising and the distribution of emergency information, and restricting indecent
programming. The FCC also requires television broadcasters to close caption their programming for the benefit of persons with
hearing impairment and to ensure that any of their programming that is later transmitted via the Internet is captioned. Network-
affiliated television broadcasters in larger markets must also offer audio narration of certain programming for the benefit of
persons with visual impairments. Reference should be made to the Communications Act, the FCC’s rules and regulations, and
the FCC’s public notices and published decisions for a fuller description of the FCC’s extensive regulation of broadcasting.
Broadcast licenses are granted for a term of up to eight years and are renewable upon request, subject to FCC review of
the licensee's performance. While there can be no assurance regarding the renewal of our broadcast licenses, we have never had
a license revoked, have never been denied a renewal, and all previous renewals have been for the maximum term.
FCC regulations govern the ownership of television stations, and the agency is required by statute to review these rules
every four years to determine if they continue to serve the public interest. In an Order released in December 2023, the FCC
concluded the review that commenced in 2018, largely retaining the existing multiple ownership rules and adding a prohibition
on television broadcasters using multicast channels or low power television stations to acquire two “top-four” affiliations in a
single market. Existing combinations of two or more “top-four” affiliations are allowed to continue but cannot be sold together
to a single buyer. The rule changes adopted in December 2023 went into effect in March 2024. Those changes have been
challenged in Court, and those cases remain pending. The 2022 quadrennial review of the ownership rules also remains open.
With respect to national television ownership, the FCC voted in December 2017 to consider whether and how it might
revisit its rule preventing applicants from obtaining an ownership interest in television stations whose total national audience
reach would exceed 39% of all television households. Earlier in that year, the FCC also reinstated the 50% discount applied to
the number of households deemed covered by UHF television stations. Scripps' current national audience reach is 38.0% of
television households after application of the “UHF discount.”
We cannot predict the outcome of these open proceedings, including pending court reviews of the FCC's most recent
changes to its television ownership rules, or the effect of further FCC rule revisions on our stations' operations or our business.
The restrictions imposed by the FCC’s ownership rules may apply to a corporate licensee due to the ownership interests of
its officers, directors or significant shareholders. If such parties meet the FCC’s criteria for holding an attributable interest in the
licensee, they are likewise expected to comply with the ownership limits, as well as other licensee requirements such as
compliance with certain criminal, antitrust and antidiscrimination laws.
In order to provide additional spectrum for mobile broadband and other services, the FCC in 2017 conducted an incentive
spectrum auction in which some television broadcasters agreed to voluntarily give up spectrum in return for a share of the
auction proceeds. No Scripps station went off-air or relinquished a UHF-band allocation for a VHF-band allocation as a result
of the auction, but many of Scripps' full-power, Class A, and low-power and translator stations relocated to new channels in the
reduced broadcast spectrum band. All Scripps stations completed this transition timely.
Broadcasters are continuing to deploy a new voluntary digital television standard, ATSC 3.0. This Internet-protocol based
transmission method permits television stations to offer enhanced and innovative services coupled with much improved
broadcast signal reception, particularly by mobile devices. The new standard, however, is incompatible with both existing
television receivers and with a station’s ability to continue offering its service via the current ATSC 1.0 digital standard. To
avoid loss of service to those viewers who lack a new receiver, stations switching to ATSC 3.0 transmission are required to
arrange for a local station that continues to use the current 1.0 standard to air (on a subchannel) programming “substantially
similar” to that offered by the switching station on its 3.0 channel. In return, the 3.0 station could host the 3.0 signal of its 1.0
“host” station. This “simulcasting” requirement was originally due to “sunset” in 2023 but has been extended by the FCC and is
now due to expire in July 2027, unless further extended. Scripps stations in several markets are operating with the new
transmission protocol.
11
The FCC remains committed to permitting non-broadcast spectrum use in the “white spaces” between television stations'
protected service areas despite broadcasters’ concerns about the possibility of harmful interference to their existing service and
to the potential for innovative uses of their broadcast spectrum in the future. In 2015, the FCC proposed to reserve a 6 MHz
“vacant channel” in each market for non-broadcast, unlicensed services (including wireless microphones) which, if adopted,
would have further reduced the spectrum available for television broadcasting. The reservation of spectrum in the “broadcast”
band for interference-protected non-broadcast services could have had a particularly adverse effect on the ability of low-power
and translator television stations to offer service since these stations enjoy only “secondary” status that offers no protection
from interference caused by a full-power station. In late 2020, the FCC declined to adopt its own vacant channel proposal,
although it continues to explore other ways to allow use of “white spaces” by unlicensed operators. We cannot predict the
outcome of these proceedings or their possible impact on the Company.
In 2022, Congress passed the Low Power Protection Act, which directed the FCC to adopt rules that will allow certain
low-power television stations in smaller markets to apply for “Class A” regulatory status, which will provide those stations with
increased protection from interference. FCC rules implementing the Low Power Protection Act went into effect May 31, 2024,
and eligible stations have until May 30, 2025 to apply for “Class A” status. While certain low power television stations owned
by the Company may be eligible to apply for this status, we cannot predict the outcome of any such applications or their
possible impact on the Company.
Full-power broadcast television stations generally enjoy “must-carry” rights on any cable television system defined as
“local” with respect to the station. Stations may waive their must-carry rights and instead negotiate retransmission consent
agreements with local cable companies. Similarly, satellite video providers are required to carry the signal of those television
stations that request carriage and that are located in markets in which the satellite carrier chooses to retransmit at least one local
station. Satellite video providers may not carry a broadcast station without its consent. For stations that do not elect mandatory
carriage, FCC rules require parties to negotiate in “good faith” for retransmission consent agreements, and the FCC has
imposed significant fines on parties who have been found to have violated these requirements. The Company has elected to
negotiate retransmission consent agreements with cable operators and satellite video providers for the majority of both our
network-affiliated stations and our independent stations. Prior to the Company’s 2021 acquisition of ION, only two Scripps
stations had elected “must-carry” status, but almost all acquired ION stations rely on “must carry” to ensure carriage.
Other proceedings before the FCC and the courts have reexamined the policies that protect television stations' rights to
control the distribution of their programming within their local service areas. For example, the FCC in 2014 initiated a
rulemaking proceeding on the degree to which an entity relying upon the Internet to deliver video programming should be
subject to the regulations that apply to multi-channel video programming distributors (“MVPDs”), such as cable operators and
satellite systems. While the major broadcast networks secured a victory in their lawsuit against the streaming service Locast,
with the court finding that its retransmission of local television stations’ signals without their consent violated copyright law,
the application of copyright law to other potential streaming services remains uncertain. We cannot predict the outcome of any
FCC initiatives to address the use of new technologies to challenge traditional means of redistributing television broadcast
programming or their possible impact on the Company.
The FCC may impose substantial penalties for violations of its rules and policies. While uncertainty continues regarding
the scope of the FCC's authority to regulate indecent programming, the agency has increased its enforcement efforts regarding
other programming issues such as sponsorship identification (including specific rules related to foreign-sponsored
programming), broadcasting improper emergency alerts and extending service to persons with disabilities. We cannot predict
the effect of the FCC’s enforcement efforts on the Company.
12
Employees and Human Capital Resource Management
Scripps operates under the fundamental philosophy that people are our most valuable asset. Identifying quality talent is at
the heart of everything we do, and our business success is dependent upon our ability to attract, develop and retain highly
qualified employees. Our core values of courage, compassion, curiosity and community establish the foundation on which the
culture is built and represent the key expectations we have of our employees. Our goal is to hire the best, to spark their passion
for the job and then to nourish their career with tools that will help them learn and excel. We believe our culture and
commitment to our employees help us attract and retain our qualified talent, while simultaneously providing significant value to
Scripps and its shareholders. Our company has a long history of evolving to meet the changing needs of the media consumer.
Employees
As of December 31, 2024, we had approximately 5,000 employees, including full-time and part-time employees. Various
labor unions represent approximately 360 employees, all of which are in Local Media. We have not experienced any work
stoppages at our current operations since 1985. We consider our relationships with our employees to be good.
Workplace
Scripps is committed to a workplace that reflects the communities where we live, work and play.
Our senior leadership team collaborates with business and human resources leaders to develop and implement objectives
and initiatives that are focused on culture (educating, developing, and growing), people (attracting and retaining), and business
(accessible/engaged leadership, accountability, and transparency). At its core, our work is about engaging every employee and
helping them to participate at work in a way that is most fulfilling for them to experience a workplace culture where they
experience the satisfaction of belonging and performing well.
Compensation and Benefits
Critical to our success is identifying, recruiting, retaining and incentivizing our existing and future employees. We strive
to attract and retain the most talented employees in the industry by offering competitive compensation and benefits. Our
compensation philosophy is based on rewarding each employee’s individual contributions by using a combination of fixed and
variable pay, including base salary, bonus, commissions and merit increases, which vary across the business and by role. In
addition, as part of our long-term incentive plan for executives and certain employees, we provide share-based compensation to
foster our merit-based culture, align our business leaders’ interests with those of our shareholders, and attract, retain and
motivate our key leaders.
As the success of our business is fundamentally connected to the well-being of our people, we offer benefits that support
their physical, financial and emotional well-being. We provide our employees with access to flexible and convenient medical
programs intended to meet their needs and the needs of their families. In addition to standard medical coverage, we offer
eligible employees dental and vision coverage, health savings and flexible spending accounts, paid time off, employee
assistance programs, voluntary identity theft protection, access to student loan assistance programs, voluntary short-term and
long-term disability insurance and term life insurance. We also offer a voluntary Employee Stock Purchase Plan ("ESPP")
whereby employees can elect to participate through payroll deductions to purchase company stock at a discounted price.
Additionally, we offer a 401(k) defined contribution plan to employees and an executive deferred compensation plan to certain
senior-level employees. Our benefits vary by location and are designed to meet or exceed local laws and to be competitive in
the marketplace.
Professional Development and Training
At Scripps, we recognize that our employees are the foundation of our success. To support their growth and align with the
evolving needs of our business, we have prioritized offering flexible, impactful learning and development opportunities. Our
programs empower employees at all levels—whether they are new to their roles, aspiring leaders, or seasoned professionals—to
develop the skills needed for both current and future success.
We are committed to fostering a culture of continuous learning. In 2024, employees completed training courses tailored to
specific roles and skill sets. Our approach ensures that training adapts to the demands of the business, with a focus on building
competencies critical to future success. Employees can also update their skills, interests and experiences in our career
development platform, enabling us to align opportunities with their aspirations and encourage self-driven career exploration.
Our leadership programs are designed to cultivate effective leaders at every level, from first-time managers to future executives.
13
These programs emphasize continuous learning through flexible formats, including self-paced modules, cohort-based learning
and live workshops. Participants gain critical skills such as effective communication, team management, and strategic thinking,
reinforced through experiential opportunities like coaching and mentorship. By investing in leadership development, we foster
stronger team performance, increased employee engagement, and a robust pipeline of future leaders.
To keep pace with rapidly evolving technology, we provide targeted training for employees in key areas such as
journalism and sales. These initiatives combine hands-on learning, mentorship, and on-demand resources to enhance job-
specific skills. From storytelling and investigative journalism to strategic marketing and client engagement, our training
programs are tailored to meet various learning preferences, ensuring employees can grow at their own pace while staying
aligned with industry advancements.
By investing in our people, we equip them to thrive in a dynamic environment while driving the innovation and
excellence that define Scripps.
Communication and Engagement
We strongly believe Scripps’ success depends on employees understanding how their work contributes to the Company’s
overall strategy. To that end, we communicate with our workforce through a variety of channels and encourage open and direct
communication, including frequent emails and videos from corporate leaders to all employees; daily company intranet and
social media postings; and regular town hall meetings with the CEO and other executives. We also welcome communication
from our employees through focus groups and town hall meeting surveys. In addition, Scripps employees across the country are
giving back in their local communities through reporting on critical issues, entertaining audiences with quality content,
fundraising to help those in need and volunteering for important causes.
Item 1A. Risk Factors
For an enterprise as large and complex as ours, a wide range of factors could materially affect future developments and
performance. The most significant factors affecting our operations include the following:
Risks Related to Our Businesses
We expect to derive the majority of our revenues from advertising spending, which is affected by numerous factors. Declines
in advertising revenues will adversely affect the profitability of our business.
The demand for advertising is sensitive to a number of factors, both locally and nationally, including the following:
•
The advertising and marketing spending by customers can be subject to seasonal and cyclical variations and is
likely to be adversely affected during economic downturns.
•
Programming and content offered by our businesses may not achieve desired ratings or may decline in popularity
with its audience.
•
Linear TV viewing levels have declined in recent years due to cord-cutting and a migration of viewing to
streaming platforms. Any continued detrimental shifts in viewer preferences adversely impact the size and
demographic profile of our audiences and put pressure on advertising rates. The largest Subscription Video on
Demand services have introduced advertising-supported versions that could take advertising dollars from linear
TV.
•
Television advertising revenues in even-numbered years generally benefit from political advertising. The amount
of political advertising generated in these even-numbered years can be unpredictable as the competitiveness of
specific political races and issues in the markets where our television stations operate determines the extent of the
benefit we may realize.
•
Continued consolidation and contraction of local advertisers in our local markets could adversely impact our
operating results, given that we expect the majority of our advertising to be sold to local businesses in our
markets.
•
Local television stations have significant exposure to advertising in the automotive, retail and services industries.
Our national networks have significant exposure to advertising in the consumer-packaged goods, pharmaceutical
14
and insurance industries. A disruption in advertising spend within these industries could adversely impact our
revenue and we may not be able to secure adequate replacement advertisers.
•
Growth in advertising revenues will rely in part on the ability to maintain and expand relationships with existing
and future advertisers. The implementation and evolution of technological models, where automation replaces
existing pricing and allocation methods, could turn advertising inventory into more of a price-driven commodity.
These automated solutions could reduce the value of relationships with advertisers as well as result in downward
pricing pressure.
•
The TV industry is on the verge of adopting new measurement currencies, and measurement providers are also
making methodological changes to the way they measure viewing by incorporating set top box and smart TV data.
The emerging currencies generally undercount over-the-air ("OTA") viewing, and measurement providers have
not prioritized OTA enhancements. If measurement evolves in a direction that does not appropriately capture OTA
viewership trends it could reduce the attractiveness of our audiences to advertisers.
•
Catastrophic events or geopolitical conditions that disrupt domestic or international economies.
If we are unable to respond to any or all of these factors, our advertising revenues could decline and affect our
profitability.
The growth of direct content-to-consumer delivery channels and resulting proliferation of programming alternatives have
fragmented our television audiences. Any fragmentation of our audiences could adversely impact advertising rates as well as
cause a reduction in the revenues we receive from retransmission consent agreements, resulting in a loss of revenue that
could materially adversely affect our broadcast operations.
We deliver our television programming to our audiences primarily over-the-air and through cable and satellite service
providers. Our television audience is being fragmented by the digital delivery of content directly to the consumer
audience. Content providers, such as the Big 4 broadcast networks, cable networks and other content developers, distributors
and syndicators can deliver their programming directly to consumers via the internet concurrently with our distribution via
over-the-air and cable and satellite. The delivery of content directly to consumers allows such distributors to compete with the
programming we deliver, which may impact our audience size. Any continued fragmentation of our audiences could impact the
rates we receive from our advertisers, as well as shift advertisers away from traditional linear advertising to digital
advertising. In addition, reduction in the number of subscribers to cable and satellite service providers could impact the revenue
we receive under retransmission consent agreements. The reduction of our advertising and distribution revenues from these
factors would affect our profitability.
The loss of affiliation and carriage agreements or the costs of renewals could adversely affect our operating results.
Eighteen of our stations have affiliations with the ABC television network, eleven with the NBC television network, nine
with the CBS television network and four with the FOX television network. These television networks produce and distribute
programming which our stations commit to air at specified times. Networks sell commercial advertising time during their
programming, and the Big 4 networks, ABC, NBC, CBS and FOX, also require stations to pay fees for the right to carry their
programming. These fees may be a percentage of retransmission revenues that the stations receive (see below) or may be fixed
amounts based on the number of households or subscribers in a market.
ION's broadcast stations are primarily carried by cable and satellite operators in their local television markets pursuant to
the FCC’s “must carry” rules. Additionally, in certain of our markets, our national networks are carried by local television
broadcasters and cable and satellite operators pursuant to negotiated carriage agreements. These contracts typically require us to
make fixed fee payments and generally have three to five-year terms.
There is no assurance that we will be able to reach network affiliation or carriage agreements in the future. The non-
renewal or termination of our network affiliation agreements would prevent us from being able to carry programming of the
respective network. Loss of a network affiliation would require us to obtain replacement programming, which may not be as
attractive to target audiences and could result in lower advertising revenues. In addition, loss of any of the Big 4 network
affiliations would result in materially lower retransmission revenue. The loss of carriage agreements for our national networks
would reduce our advertising revenues and affect our profitability.
15
Our retransmission consent revenue may be adversely affected by renewals of retransmission consent agreements, by
declines in the number of subscribers to multichannel video programming distributor ("MVPD") services, by new
technologies for the distribution of video programming, by revised government regulations, or by MVPDs altering their
strategies for delivering paid video services.
As our retransmission consent agreements expire, there can be no assurance that we will be able to renew them at
comparable or better rates. As a result, retransmission revenues could decrease and retransmission revenue growth could
decline over time.
In recent years, the number of subscribers to MVPD services has declined, as the growth of direct internet streaming of
video programming to televisions and mobile devices has incentivized consumers to discontinue their cable or satellite service
subscriptions. Decreases in the number of MVPD subscribers reduces the revenue we earn under our retransmission
agreements.
The use of new technologies to redistribute broadcast programming, such as those that rely upon the Internet to deliver
video programming or those that receive and record broadcast signals over the air via an antenna and then retransmit that
information digitally to customers’ television sets, specialty set-top boxes, or computer or mobile devices, could adversely
affect our retransmission revenue if such technologies are not found to be subject to copyright or other legal restrictions or to
regulations that apply to MVPDs such as cable operators or satellite carriers.
Changes in the Communications Act of 1934, as amended (the “Communications Act”) or the FCC’s rules with respect to
the negotiation of retransmission consent agreements between broadcasters and MVPDs could also adversely impact our ability
to negotiate acceptable retransmission consent agreements. In addition, continued consolidation among cable television
operators could adversely impact our ability to negotiate acceptable retransmission consent agreements.
A few MVPDs have announced that they are gradually exiting the paid video services side of their business and
transitioning their subscribers to YouTube TV. If other MVPDs follow suit and transition subscribers to virtual services,
profitability of our business could be adversely affected.
We make investments in television programming ("content") in advance of knowing whether that particular content will be
popular enough for us to recoup our costs. Additionally, if costs to acquire this content increase or this content becomes
more difficult to obtain, our operating results may be adversely affected.
We incur significant costs for the purchase of television content. We may have to purchase content several years in
advance or enter into multi-year agreements, resulting in the commitment of significant costs in advance of knowing whether
the content will be popular with audiences. If this acquired content is not sufficiently popular among audiences in relation to the
cost we invest in the content, or if we need to replace content that is performing poorly, we may not be able to produce enough
revenue to recover our costs. Additionally, increased competition for content from entrants into the market and the exclusive
use of content on streaming services owned by content creators could reduce content availability or increase our content costs.
A shortfall in the expected popularity of content we distribute, including sports programming for which we have acquired
rights, could have a significant adverse effect on our business. Any of these factors could reduce our revenues, result in the
incurrence of impairment charges or otherwise cause our costs to escalate relative to revenues.
Our television stations will continue to be subject to government regulations which, if revised, could adversely affect our
operating results.
•
Pursuant to FCC rules, local television stations must elect every three years to either (1) require cable operators
and/or direct broadcast satellite carriers to carry the stations’ over-the-air signals or (2) enter into retransmission
consent negotiations for carriage. If our retransmission consent agreements are terminated or not renewed, or if
our broadcast signals are distributed on less-favorable terms, our ability to compete effectively may be adversely
affected.
•
If we cannot renew our FCC broadcast licenses, our broadcast operations will be impaired. Our business depends
upon maintaining our broadcast licenses from the FCC, which has the authority to revoke licenses, not renew
them, or renew them only with significant qualifications, including renewals for less than a full term. We cannot
assure that future renewal applications will be approved, or that the renewals will not include conditions or
qualifications that could adversely affect operations. If the FCC fails to renew any of these licenses, it could
prevent us from operating the affected stations. If the FCC renews a license with substantial conditions or
16
modifications (including renewing the license for a term of fewer than eight years), it could have a material
adverse effect on the affected station’s revenue potential.
•
As also discussed under Federal Regulation of Broadcasting, the FCC has adopted broadcasters’ proposal to
permit the voluntary use of a new digital television transmission standard, ATSC 3.0, that is incompatible with the
existing standard. Much uncertainty exists concerning the costs, benefits, and public acceptance of the services
expected to become possible under this new standard, and television stations could be adversely affected by
moving either too quickly or too slowly towards its adoption.
•
The FCC and other government agencies are continually considering proposals intended to promote consumer
interests. New government regulations affecting the television industry could raise programming costs, restrict
broadcasters’ operating flexibility, reduce advertising revenues, raise the costs of delivering broadcast signals, or
otherwise affect operating results. We cannot predict the nature or scope of future government regulation or its
impact on our operations.
The loss of skilled employees or an inability to attract and retain skilled employees could adversely affect our business.
To execute our strategic plan and maintain business continuity, we must attract and retain personnel with appropriate
talent and skills. If we are unable to hire and retain employees capable of performing key functions in our business, or if
measures we take to respond to a decrease in labor availability prove ineffective or have unintended negative consequences, our
business could be adversely affected. Sustained labor shortages or increased turnover rates, whether caused by general
macroeconomic factors or dynamics within our industry (including a shrinking pool of new talent interested in the media
business), could lead to increased costs, such as increased wage rates to attract and retain employees, could negatively affect
our revenue and profits and could have an impact on our operations and business continuity.
Acquisitions, joint ventures and strategic alliances involve risks and, if said risks are not managed effectively, our operating
results could be negatively affected.
We expect to continue making acquisitions and entering into joint ventures and strategic alliances as part of our long-term
business strategy. Acquisitions and other strategic transactions involve inherent risks, such as increasing leverage and debt
service requirements and combining company cultures, facilities and systems, which could have a material adverse effect on our
results of operations. Additionally, our revenues and profitability could be adversely affected if we are unable to implement
effective cost controls, achieve expected synergies, or increase revenues as a result of these transactions. Such transactions can
also result in unexpected liabilities and potentially divert management’s attention from the operation of our business.
We may evaluate strategic acquisitions and investments in the future, and there are various risks associated with an
investment strategy.
We have pursued and may selectively continue to pursue strategic transactions, subject to market conditions, our liquidity,
and the availability of attractive investment candidates, with the goal of improving our business. We may not be able to identify
other attractive acquisition and investment targets or some of our competitors may have greater financial or managerial
resources with which to pursue strategic targets we may pursue. Therefore, even if we are successful in identifying attractive
investment targets, we may face considerable competition and be unsuccessful in acquiring such targets.
Acquisitions of television stations are subject to the approval of the FCC and the Antitrust Division of the Department of
Justice. Current or future policies of these regulatory authorities could impact our ability to pursue or consummate future
transactions and could require us to divest certain television stations if an acquisition under contract would result in excessive
concentration in a market or fail to comply with FCC ownership limitations. There can be no assurance that an acquisition will
be approved by these regulatory authorities, or that a requirement to divest existing stations will not have an adverse effect on
the transaction or our business.
We will continue to face cybersecurity and similar risks, which could result in the disclosure of confidential information,
disruption of operations, damage to our brands and reputation, legal exposure and financial losses.
Security breaches, malware or other “cyber attacks” could harm our business by disrupting delivery of services,
jeopardizing our confidential information and that of our vendors and clients, and damaging our reputation. Our operations are
routinely involved in receiving, storing, processing and transmitting sensitive information. Although we monitor security
measures regularly, any unauthorized intrusion, malicious software infiltration, theft of data, network disruption, denial of
17
service, or similar act by any party could disrupt the integrity, continuity, and security of our systems or the systems of our
clients or vendors. These events, or our failure to employ new technologies, revise processes and invest in people to sustain our
ability to defend against cyber threats, could create financial liability, regulatory sanction, or a loss of confidence in our ability
to protect information, and adversely affect our revenue by causing the loss of current or potential clients.
We have issued $600 million in preferred shares, the terms of which restrict us from undertaking certain actions while such
preferred shares are outstanding.
Berkshire Hathaway Inc. (“Berkshire Hathaway”) provided $600 million of financing for the ION acquisition in exchange
for Series A Preferred Shares of the Company. The preferred shares are redeemable at the option of Scripps beginning on
January 7, 2026, and redeemable at the option of the holders in the event of a Change of Control (as defined in the terms of the
preferred shares), in each case at a redemption price of 105% of the face value, plus accrued and unpaid dividends (whether or
not declared). Following Scripps' election to defer the first quarter 2024 dividend payment, the dividend rate on the preferred
shares increased from 8% per annum to 9% per annum and will continue at that rate for the remaining periods that the preferred
shares are outstanding. Under the terms of the preferred shares, Scripps is subject to certain restrictions, including being
prohibited from paying dividends on and purchasing its common shares until all preferred shares are redeemed. While the
preferred shares are outstanding, we may also not issue any additional preferred shares or any shares of any other series of
preferred without the consent of Berkshire Hathaway. These restrictions may limit our flexibility to pursue other strategic
opportunities.
Risks Related to the Ownership of Scripps Class A Common Shares
Certain descendants of Edward W. Scripps own approximately 93% of Scripps' Common Voting shares and are signatories
to the Scripps Family Agreement, which governs the transfer and voting of Common Voting shares held by them.
As a result of the foregoing, these descendants have the ability to elect two-thirds of the Board of Directors and to direct
the outcome of any matter on which the Ohio Revised Code (“ORC”) does not require a vote of our Class A Common shares.
Under our articles of incorporation, holders of Class A Common shares vote only for the election of one-third of the Board of
Directors and are not entitled to vote on any matter other than a limited number of matters expressly set forth in the ORC as
requiring a separate vote of both classes of stock. Because this concentrated control could discourage others from initiating any
potential merger, takeover or other change of control transaction, the market price of our Class A Common shares could be
adversely affected.
We have the ability to issue preferred stock, which could affect the rights of holders of our Class A Common shares.
Our articles of incorporation allow the Board of Directors to issue and set the terms of 25 million shares of preferred
stock. The terms of any such preferred stock, if issued, may adversely affect the dividend, liquidation and other rights of holders
of our Class A Common shares.
The public price and trading volume of our Class A Common shares may be volatile.
The price and trading volume of our Class A Common shares may be volatile and subject to fluctuation. Some of the
factors that could cause fluctuation in the stock price or trading volume of Class A Common shares include:
•
major world events and geopolitical conditions;
•
general market and economic conditions and market trends, including in the television broadcast industry, the
national media marketplace and the financial markets generally;
•
the political, economic and social situation in the United States;
•
variations in quarterly operating results;
•
inability to meet revenue forecasts;
•
announcements by us or competitors of significant acquisitions, strategic partnerships, joint ventures, capital
commitments or other business developments;
•
adoption of new accounting standards affecting the media industry;
18
•
operations of competitors and the performance of competitors’ common stock;
•
litigation and governmental action involving or affecting us or our subsidiaries;
•
changes in financial estimates and recommendations by securities analysts;
•
loss of key personnel;
•
purchases or sales of blocks of our Class A Common shares;
•
operating and stock performance of companies that investors may consider to be comparable to us; and
•
changes in the regulatory environment, including rulemaking or other actions by the FCC or the SEC.
There can be no assurance that the price of our Class A Common shares will not fluctuate or decline significantly. The
stock market may experience considerable price and volume fluctuations that could be unrelated or disproportionate to the
operating performance of individual companies and that could adversely affect the price of our Class A Common shares,
regardless of the Company’s operating performance. Stock price volatility might be higher if the trading volume of our Class A
Common shares is low. Furthermore, shareholders may initiate securities class action lawsuits if the market price of our Class A
Common shares declines significantly, which may cause us to incur substantial costs and divert the time and attention of our
management.
Risks Related to Our Indebtedness
We have substantial debt. The principal and interest payment obligations on such debt may restrict our future operations
and impair our ability to meet our long-term obligations.
As of December 31, 2024, we had approximately $2.6 billion in aggregate principal amount of outstanding indebtedness,
approximately $818 million of which constituted senior unsecured debt, $523 million of which constituted senior secured debt
and $1.3 billion of which constituted the aggregate principal amount of term loans under our Credit Agreement. Our term loan
that has an outstanding balance of $721 million and matures in May 2026 is our earliest maturing outstanding debt. We have the
ability to incur up to $585 million of indebtedness under our Credit Agreement that currently matures on January 7, 2026, all of
which is secured indebtedness, effectively ranking senior to unsecured indebtedness to the extent of the value of the assets
securing such indebtedness.
Our outstanding debt could have the following consequences:
•
require us to dedicate a substantial portion of any cash flow from operations to the payment of interest and
principal due under our debt, which would reduce funds available for other business purposes, including capital
expenditures and acquisitions;
•
place us at a competitive disadvantage compared to some of our competitors that may have less debt and better
access to capital resources;
•
make us more vulnerable to economic downturns and adverse industry conditions and limit our flexibility to plan
for, or react to, changes in our business or industry;
•
limit our ability to obtain additional financing required to fund acquisitions, working capital and capital
expenditures and for other general corporate purposes; and
•
make it more difficult for us to satisfy our financial obligations.
Our ability to service our significant financial obligations depends on our ability to generate significant cash flow. This is
partially subject to general economic, financial, competitive, legislative, regulatory, and other factors that are beyond our
control. We cannot assure you that our business will generate cash flow from operations, that future borrowings will be
available to us under our Credit Agreement or any other credit facilities, or that we will be able to complete any necessary
financings, in amounts sufficient to enable us to fund our operations or pay our debts and other obligations, or to fund other
liquidity needs. We do not currently have the necessary cash on hand or projected future cash flows to fund the May 2026 debt
maturity. To address our capital needs, we are in active discussions with funding sources to refinance portions of our
outstanding debt. If we are not able to successfully refinance or restructure our debt, we may need to sell assets, reduce or delay
19
capital investments, or seek to raise alternative capital. Additional debt or equity financing may not be available in sufficient
amounts, at times or on terms acceptable to us, or at all. Specifically, volatility in the capital markets may also impact our
ability to obtain additional financing, or to refinance our existing debt, on terms or at times favorable to us. If we are unable to
implement one or more of these alternatives, we may not be able to service our debt or other obligations, which could result in
us being in default thereon, in which circumstances our lenders could cease making loans to us, and lenders or other holders of
our debt could accelerate and declare due all outstanding obligations under the respective agreements, which would likely have
a material adverse effect on us.
The agreements governing our various debt obligations impose restrictions on our operations and limit our ability to
undertake certain corporate actions.
The agreements governing our various debt obligations, including the indenture that governs senior indebtedness and the
agreements governing our Credit Agreement, include covenants imposing significant restrictions on our operations. These
restrictions may affect our ability to operate our business and may limit our ability to take advantage of potential business
opportunities as they arise. These covenants place restrictions, subject to certain limitations, on our ability to, among other
things:
•
incur additional debt;
•
declare or pay dividends, redeem stock or make other distributions to shareholders;
•
make investments or acquisitions;
•
create liens or use assets as security in other transactions;
•
issue guarantees;
•
merge or consolidate, or sell, transfer, lease or dispose of substantially all of our assets;
•
engage in transactions with affiliates; and
•
purchase, sell or transfer certain assets.
Any of these restrictions and limitations could make it more difficult for us to execute our business strategy.
The agreements governing the Company's debt require us to comply with certain financial ratios and covenants; our failure
to do so will result in a default thereunder, which would have a material adverse effect on us.
We are required to comply with certain financial covenants under our Credit Agreement. Our ability to comply with these
requirements may be affected by events affecting our business, but beyond our control, including prevailing general economic,
financial and industry conditions. These covenants could have an adverse effect on us by limiting our ability to take advantage
of financing, merger and acquisition or other corporate opportunities. The breach of any covenants or restrictions under any of
our debt arrangements could result in a default, and could give lenders or debt holders the right to declare all amounts
outstanding, together with accrued and unpaid interest, to be immediately due and payable, which could, in turn, trigger defaults
under other debt obligations and could result in the termination of commitments of the lenders to make further extensions of
credit under our revolving credit facility. Similarly, if we were unable to repay our secured debt to our lenders, or were
otherwise in default under any provision governing our outstanding secured debt obligations, our secured lenders could proceed
against us and subsidiary guarantors and against the collateral securing that debt. Any default resulting in an acceleration of
outstanding indebtedness, a termination of commitments under our financing arrangements or lenders proceeding against the
collateral securing such indebtedness would likely result in a material adverse effect on our business, financial condition and
results of operations.
Our variable rate indebtedness subjects us to interest rate risk, which could cause our annual debt service obligations to
increase significantly.
Borrowings under our Credit Agreement are at variable rates of interest and expose us to interest rate risk. Interest rates
may increase in the future. If rates were to increase, debt service obligations on our variable rate indebtedness would increase
even though the amount borrowed remained the same, and our net income and cash available to service our obligations would
decrease. Additionally, upon the incurrence of new higher-yield term loans, the interest rates on our existing term loans would
increase.
20
Item 1B.
Unresolved Staff Comments
None.
Item 1C. Cybersecurity
Protecting our systems and data from cyber threats is important for ensuring the continuity of operations and maintaining
the trust of our customers and stakeholders. Scripps is committed to the transparent and ethical use of the personal data in its
care and complying with applicable privacy-related regulations.
To date, no risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially
affected our business, our business strategy, our results of operations or financial condition. For further information, see “We
will continue to face cybersecurity and similar risks, which could result in the disclosure of confidential information, disruption
of operations, damage to our brands and reputation, legal exposure and financial losses” in Item 1A, Risk Factors of this Annual
Report. In the event an attack or other intrusion were to be successful, we have a trained response team of internal and external
resources that are prepared to respond.
Cybersecurity Program
Scripps is committed to having a strong cybersecurity program and employs a chief information security officer ("CISO")
to oversee the cybersecurity leadership team. The team manages governance, risk and compliance, security operations, and
identity and access management. Scripps routinely identifies and considers potential improvements to its cybersecurity program
based on the threat landscape. Improvements may include adjustments to staffing, processes or the acquisition of new
technology. When such potential improvements are identified, the Company weighs the costs and benefits of such
improvements (including against other potential improvements) and, if selected, the improvements are added to a roadmap for
possible implementation.
Scripps has implemented certain physical, administrative and technical controls to help secure its enterprise environment
and products. Cybersecurity controls include, but are not limited to, the following measures:
•
Enforce controls that limit access based on job responsibilities and enforcing authentication measures, including
strong password policies and multifactor authentication where appropriate.
•
Conduct exercises to ensure the company is prepared to respond to cyber incidents.
•
Align the cybersecurity program with the National Institute of Standards and Technology cybersecurity
framework.
•
Scan our systems for vulnerabilities that may potentially impact our enterprise or products, categorize them based
on severity and where possible, proactively address them to prevent exploitation by threat actors.
•
Employ a trained incident response team and a managed security service provider to identify and mitigate
incidents that bypass our cybersecurity controls to minimize impact to operations.
Incident Response Plan
The Integrated Incident Response Program is reviewed at least annually to ensure alignment with any changes in
notification laws, company structure and operations, service providers and the risk landscape. The Cyber Incident Response
Plan includes materiality assessments in accordance with the new U.S. Securities and Exchange Commission ("SEC")
cybersecurity rules. This same process is also used to address materiality as it relates to non-cyber events, should they occur.
Tabletop exercises are conducted periodically to assess readiness for plan execution.
Any actual or suspected security incident is reported to the CISO. Cybersecurity incidents are evaluated under the
Integrated Incident Response Program and flow to the Enterprise Response Team according to clearly defined escalation
criteria.
21
Oversight
Cybersecurity is a key risk included in risk management discussions on the Governance, Risk and Compliance committee
that meets quarterly before board meetings. The Board of Directors oversees cybersecurity and technology risks through the
Audit Committee, which receives quarterly updates from the CISO. Intermittent updates are provided to the full Board for
educational purposes or when special needs arise.
Our chief privacy officer oversees an enterprise wide privacy program that includes annual training; a “privacy by design”
ethos within development teams; privacy-specific contract reviews; and an enterprise wide privacy platform to manage rights,
requests and consent management.
Privacy
Scripps is committed to data governance and protection. We recognize the importance of safeguarding personal
information in today's digital landscape. Our comprehensive Privacy Policy provides a clear definition of "personal data" and
outlines where and how the policy applies. The policy details our methods for collecting and storing personal data, explains
users' rights and addresses additional privacy-related matters. We maintain transparency by keeping our Privacy Policy updated
and making it available across all relevant digital platforms.
Employee Training Programs
We launch separate, annual web-based learning modules on cybersecurity, privacy and various security topics such as
phishing, password hygiene and data governance to all employees. The annual security awareness training is reinforced through
regular phishing simulations across the enterprise to provide employees with practical exposure to phishing campaigns.
Employees who fail phishing simulations must complete additional training.
Item 2.
Properties
We lease our principal executive offices in a building located at 312 Walnut Street, Cincinnati, OH 45202.
We own or lease the facilities and equipment used by our television stations. We own, lease or co-own with other
broadcast television stations, the towers used to transmit our television signals.
Our Scripps Networks business primarily leases their facilities. This includes facilities for executive offices, sales offices
and studio space.
All of our owned and leased properties are in good condition, and suitable for the conduct of our present business. We
believe that suitable additional or alternative space, including those under lease options, will be available at commercially
reasonable terms for future expansion.
Item 3.
Legal Proceedings
We are involved in litigation arising in the ordinary course of business, such as defamation actions and governmental
proceedings primarily relating to renewal of broadcast licenses, none of which is expected to result in material loss.
Item 4.
Mine Safety Disclosures
None.
22
Executive Officers of the Company — Executive officers serve at the pleasure of the Board of Directors.
Name
Age
Position
Adam P. Symson
50
President and Chief Executive Officer (since August 2017)
Jason Combs
48
Chief Financial Officer (since January 2021); Vice President, Financial Planning &
Analysis (April 2015 to January 2021)
David M. Giles
64
Chief Legal Officer (since August 2024); Senior Vice President, Deputy General
Counsel and Chief Ethics Officer (August 2017 to August 2024)
Lisa A. Knutson
59
Chief Operating Officer (January 2023 to December 2024); President, Scripps Networks
(January 2021 to January 2023); Executive Vice President, Chief Financial Officer
(October 2017 to January 2021)
Laura M. Tomlin
49
Chief Transformation Officer (since August 2024); Chief Administrative Officer
(January 2021 to August 2024); Executive Vice President, National Media (November
2019 to January 2021), Senior Vice President, National Media (2017 to 2019)
Brian G. Lawlor
58
President, Scripps Sports (since December 2022); President, Local Media (August 2017-
January 2023)
Daniel W. Perschke
45
Senior Vice President, Controller (Principal Accounting Officer) (since November
2020); Vice President, Assistant Controller (January 2018 to November 2020)
PART II
Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities
Our Class A Common shares are traded on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “SSP.”
As of December 31, 2024, there were approximately 13,300 owners of our Class A Common shares, based on security position
listings, and approximately 70 owners of our Common Voting shares (which do not have a public market).
There were no sales of unregistered equity securities during the quarter for which this report is filed.
Under the terms of the preferred stock issued in 2021 to Berkshire Hathaway, Inc., we are prohibited from repurchasing
our common shares until all preferred shares are redeemed. See Note 17. Capital Stock and Share-Based Compensation Plans in
the Notes to Consolidated Financial Statements in Part II, Item 8 of this Form 10-K for more information.
23
Performance Graph — Set forth below is a line graph comparing the cumulative return on the Company’s Class A Common
shares, assuming an initial investment of $100 as of December 31, 2019, and based on the market prices at the end of each year
and assuming dividend reinvestment, with the cumulative total return of the S&P 500 Index and the cumulative total return of
the NASDAQ US Benchmark Media TR Index.
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2023
12/31/2024
The E.W. Scripps Company
$
100.00 $
99.17 $
125.50 $
85.54 $
51.81 $
14.33
S&P 500 Index
100.00
118.40
152.39
124.79
157.59
197.02
NASDAQ US Benchmark
Media TR Index
100.00
124.67
125.83
72.99
91.46
133.73
Item 6.
[Reserved]
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Management’s Discussion and Analysis of Financial Condition and Results of Operations required by this item is filed as
part of this Form 10-K. See Index to Consolidated Financial Statement Information at page F-1 of this Form 10-K.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
The market risk information required by this item is filed as part of this Form 10-K. See Index to Consolidated Financial
Statement Information at page F-1 of this Form 10-K.
Item 8.
Financial Statements and Supplementary Data
The Financial Statements and Supplementary Data required by this item are filed as part of this Form 10-K. See Index to
Consolidated Financial Statement Information at page F-1 of this Form 10-K.
Item 9.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
None.
24
Item 9A. Controls and Procedures
The Controls and Procedures required by this item are filed as part of this Form 10-K. See Index to Consolidated
Financial Statement Information at page F-1 of this Form 10-K.
Item 9B.
Other Information
None of our directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule
10b5-1 trading arrangement (as defined in Item 408(a) of Regulation S-K) during the quarter ended December 31, 2024.
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
None.
PART III
Item 10.
Directors, Executive Officers and Corporate Governance
Information regarding executive officers is included in Part I of this Form 10-K as permitted by General Instruction G(3).
Information required by Item 10 of Form 10-K relating to directors is incorporated by reference to the material captioned
“Election of Directors” in our definitive proxy statement for the Annual Meeting of Shareholders (“Proxy Statement”).
Information regarding Section 16(a) compliance is incorporated by reference to the material captioned “Delinquent Section
16(a) Reports” in the Proxy Statement.
We have adopted a code of conduct that applies to all employees, officers and directors of Scripps. We also have a code of
ethics for the CEO and Senior Financial Officers that meets the requirements of Item 406 of Regulation S-K and the NASDAQ
listing standards. Copies of our codes of ethics are posted on our website at http://www.scripps.com.
Information regarding our audit committee financial expert is incorporated by reference to the material captioned
“Corporate Governance” in the Proxy Statement.
The Proxy Statement will be filed with the Securities and Exchange Commission in connection with our 2025 Annual
Meeting of Shareholders.
Item 11.
Executive Compensation
The information required by Item 11 of Form 10-K is incorporated by reference to the material captioned “Compensation
Discussion and Analysis” in the Proxy Statement.
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The information required by Item 12 of Form 10-K is incorporated by reference to the material captioned “Report on the
Security Ownership of Certain Beneficial Owners,” “Report on the Security Ownership of Management,” and “Equity
Compensation Plan Information” in the Proxy Statement.
Item 13.
Certain Relationships and Related Transactions, and Director Independence
The information required by Item 13 of Form 10-K is incorporated by reference to the materials captioned “Corporate
Governance” and “Related Party Transactions” in the Proxy Statement.
Item 14.
Principal Accounting Fees and Services
The information required by Item 14 of Form 10-K is incorporated by reference to the material captioned “Report of the
Audit Committee of the Board of Directors” in the Proxy Statement.
25
PART IV
Item 15.
Exhibits and Financial Statement Schedules
Documents filed as part of this report:
(a) The Consolidated Financial Statements of The E.W. Scripps Company are filed as part of this Form 10-K. See Index to
Consolidated Financial Statement Information at page F-1.
The reports of Deloitte & Touche LLP, an Independent Registered Public Accounting Firm, dated March 12, 2025, are
filed as part of this Form 10-K. See Index to Consolidated Financial Statement Information at page F-1.
(b) There are no supplemental schedules that are required to be filed as part of this Form 10-K.
(c) An exhibit index required by this item appears below.
26
Exhibit
Number
Exhibit Description
Form
File
Number
Exhibit
Report
Date
2.01
Agreement and Plan of Merger by and among The E.W. Scripps Company, Scripps
Media, Inc., Scripps Faraday, Inc., ION Media Networks, Inc., and BD ION
Equityholder Rep LLC, dated September 23, 2020
8-K/A
001-10701
2.1
9/23/2020
3.01
Amended Articles of Incorporation of The E.W. Scripps Company
10-Q
001-10701
3.05
3/31/2023
3.02
Amended and Restated Code of Regulations of The E.W. Scripps Company
8-K
000-16914
10.02
5/10/2007
4.01
Warrant Agreement dated January 7, 2021, by and between The E.W. Scripps
Company and Berkshire Hathaway, Inc.
8-K
001-10701
4.1
1/4/2021
4.02
First Amendment to Warrant Agreement dated as of May 14, 2021
8-K
001-10701
4.2
5/14/2021
4.03
Description of Capital Stock of Scripps
10-Q
001-10701
4.03
3/31/2023
10.01
The E.W. Scripps Company 2023 Long-Term Incentive Plan
DEF 14A
001-10701
Appendix
3/17/2023
10.02
Amendment No. 1 to The E.W. Scripps Company 2023 Long-Term Incentive Plan
DEF 14A
001-10701
Appendix
3/22/2024
10.03
Form of Independent Director Nonqualified Stock Option Agreement
8-K
000-16914
10.03B
2/9/2005
10.04
The E.W. Scripps Company Executive Annual Incentive Plan
10-K
001-10701
10.04
12/31/2019
10.05
Scripps Executive Severance and Change in Control Plan (Effective as of February
25, 2020)
10-K
001-10701
10.05
12/31/2022
10.06
Second Amended and Restated Scripps Family Agreement
SC 13D/A
005-43473
99.1
4/5/2021
10.07
1997 Deferred Compensation and Stock Plan for Directors, as amended
8-K
000-16914
10.61
5/8/2008
10.08
Scripps Supplemental Executive Retirement Plan as Amended and Restated effective
February 23, 2015
10-Q
000-16914
10.10
9/30/2017
10.09
Employment Agreement between the Company and Adam P. Symson
8-K
001-10701
10.1
8/2/2022
10.10
Scripps Executive Deferred Compensation Plan, Amended and Restated as of
February 23, 2015
10-Q
000-16914
10.14
9/30/2017
10.11
The E.W. Scripps Company Restricted Share Unit Agreement (Non-Employee
Directors)
10-K
001-10701
10.10
12/31/2023
10.12
Employee Restricted Share Unit Agreement
10-K
001-10701
10.11
12/31/2023
10.13
The E.W. Scripps Company Restricted Share Unit Agreement (Executive Officers)
10-K
001-10701
10.12
12/31/2023
10.14
CEO Performance-Based Restricted Share Unit Agreement
8-K
001-10701
10.2
8/2/2022
10.15
CEO Time-Based Restricted Share Unit Agreement
8-K
001-10701
10.3
8/2/2022
10.16
Third Amended and Restated Credit Agreement dated as of April 28, 2017 (as
amended by the First Amendment, dated as of October 2, 2017, the Second
Amendment, dated as of April 3, 2018, the Third Amendment, dated as of November
20, 2018 and the Fourth Amendment, dated as of May 1, 2019, the Fifth
Amendment, dated as of December 18, 2019, the Sixth Amendment, dated as of
January 7, 2021, the Seventh Amendment, dated as of March 7, 2023 and the Eighth
Amendment, dated as of July 31, 2023)
10-Q
001-10701
10.1
6/30/2023
10.17
Indenture dated as of July 26, 2019
8-K
001-10701
10.1
7/26/2019
10.18
Secured Senior Notes Indenture dated as of December 30, 2020
8-K
001-10701
10.1
12/30/2020
10.19
Unsecured Senior Notes Indenture dated as of December 30, 2020
8-K
001-10701
10.2
12/30/2020
10.20
Securities Purchase Agreement, by and between The E.W. Scripps Company and
Berkshire Hathaway, Inc., dated September 23, 2020
8-K
001-10701
10.1
9/23/2020
10.21
Registration Rights Agreement dated January 7, 2021, by and between The E.W.
Scripps Company and Berkshire Hathaway, Inc.
8-K
001-10701
10.3
1/4/2021
14
The E.W. Scripps Company Code of Business Conduct and Ethics for the Chief
Executive Officer and Senior Financial Officers
10-K
001-10701
14
12/31/2022
19
The E.W. Scripps Insider Trading Policy
10-K
001-10701
19
12/31/2023
21
Subsidiaries of the Company
*
23
Consent of Independent Registered Public Accounting Firm
*
31(a)
Section 302 Certifications
*
31(b)
Section 302 Certifications
*
32(a)
Section 906 Certifications
*
32(b)
Section 906 Certifications
*
97
The E.W. Scripps Company Compensation Recovery Policy
10-K
001-10701
97
12/31/2023
101.INS
iXBRL Instance Document - the instance document does not appear in the
Interactive Data File because its XBRL tags are embedded within the Inline XBRL
document
*
101.SCH
Inline XBRL Taxonomy Extension Schema Document
*
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
*
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
*
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
*
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
*
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in
Exhibits 101)
*
* - As filed herewith
27
Item 16.
Form 10-K Summary
None.
28
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
THE E. W. SCRIPPS COMPANY
Dated: March 12, 2025
By: /s/ Adam P. Symson
Adam P. Symson
President and Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following
persons on behalf of the registrant in the capacities indicated, on March 12, 2025.
Signature
Title
/s/ Adam P. Symson
President and Chief Executive Officer
Adam P. Symson
(Principal Executive Officer)
/s/ Jason Combs
Chief Financial Officer
Jason Combs
(Principal Financial Officer)
/s/ Daniel W. Perschke
Senior Vice President, Controller
Daniel W. Perschke
(Principal Accounting Officer)
/s/ Marcellus W. Alexander, Jr.
Director
Marcellus W. Alexander, Jr.
/s/ Charles L. Barmonde
Director
Charles L. Barmonde
/s/ Kelly P. Conlin
Director
Kelly P. Conlin
/s/ Nishat Mehta
Director
Nishat Mehta
/s/ John W. Hayden
Director
John W. Hayden
/s/ Burton Jablin
Director
Burton Jablin
/s/ Raymundo H. Granado
Director
Raymundo H. Granado
/s/ Leigh Radford
Director
Leigh Radford
/s/ Monica O. Holcomb
Director
Monica O. Holcomb
/s/ Kim Williams
Chair of the Board of Directors
Kim Williams
29
[This page intentionally left blank]
The E.W. Scripps Company
Index to Consolidated Financial Statement Information
Item No.
Page
1. Management’s Discussion and Analysis of Financial Condition and Results of Operations
F-2
2. Quantitative and Qualitative Disclosures About Market Risk
F-15
3. Controls and Procedures (Including Management’s Report on Internal Control Over Financial Reporting)
F-15
4. Reports of Independent Registered Public Accounting Firm (PCAOB ID No. 34)
F-17
5. Consolidated Balance Sheets
F-20
6. Consolidated Statements of Operations
F-21
7. Consolidated Statements of Comprehensive Income (Loss)
F-22
8. Consolidated Statements of Cash Flows
F-23
9. Consolidated Statements of Equity
F-24
10. Notes to Consolidated Financial Statements
F-25
F-1
Management’s Discussion and Analysis of Financial Condition and Results of Operations
The Consolidated Financial Statements and Notes to Consolidated Financial Statements are the basis for our discussion
and analysis of financial condition and results of operations. You should read this discussion in conjunction with those financial
statements.
This section of the Form 10-K omits discussion of year-to-year comparisons between 2023 and 2022, which may be found
in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our
2023 Form 10-K.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "believe,"
"anticipate," "intend," "expect," "estimate," "could," "should," "outlook," "guidance," and similar references to future periods.
Examples of forward-looking statements include, among others, statements the Company makes regarding expected operating
results and future financial condition. Forward-looking statements are neither historical facts nor assurances of future
performance. Instead, they are based only on management’s current beliefs, expectations, and assumptions regarding the future
of the industry and the economy, the Company’s plans and strategies, anticipated events and trends, and other future conditions.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties, and changes in
circumstance that are difficult to predict and many of which are outside of the Company’s control. A detailed discussion of such
risks and uncertainties is included in the section of this document titled "Risk Factors." The Company’s actual results and
financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely
on any of these forward-looking statements. Any forward-looking statement made in this document is based only on currently
available information and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly
update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new
information, future developments, or otherwise.
Executive Overview
The E.W. Scripps Company (“Scripps”) is a diverse media enterprise that serves audiences and businesses through a
portfolio of more than 60 local television stations in more than 40 markets and national news and entertainment networks. Our
local stations have programming agreements with ABC, NBC, CBS and FOX. The Scripps Networks reach nearly every
American through national news outlets Scripps News and Court TV and popular entertainment brands ION, Bounce, Grit, ION
Mystery, ION Plus and Laff. We also serve as the longtime steward of one of the nation's largest, most successful and longest-
running educational programs, the Scripps National Spelling Bee. Additionally, we provide a television viewing device called
Tablo that allows households to watch and record dozens of free, over-the-air and streaming channels anywhere in their home
without a subscription.
Scripps is a leader in free, ad-supported television. All of our local stations and national entertainment networks reach
consumers over the air, and all of our television brands can also be found on free streaming platforms. We have continued to
expand in the fast-growing connected television marketplace, and we are leveraging our leadership position in the growing
over-the-air marketplace. Currently, one in three non pay-TV homes is watching television over the air alongside their
streaming subscription services, and as cord-cutting and streaming service price increases continue, over-the-air channels will
be an important part of television viewers' choices. To that end, Scripps continues efforts to broaden antenna use even more and
is working with key partners in retail, manufacturing and antenna installation to help television owners understand the quality
and quantity of programming available over the air and the ease of antenna use.
In January 2023, we announced a strategic restructuring and reorganization of the Company to further leverage our strong
position in the U.S. television ecosystem and propel our growth across new distribution platforms and emerging media
marketplaces. The strategic restructuring and reorganization created a leaner and more agile operating structure through the
centralization of certain services and the consolidation of layers of management across our operating businesses and corporate
office. This initial reorganization of the operating structure was substantially completed by the end of the 2024 second quarter
and resulted in more than $40 million in annual savings, of which $20 million of the annualized savings was achieved by the
end of 2023. We also have continued to identify efficiency opportunities within the functional departments of our organization,
which resulted in additional restructuring charges over the last two quarters of 2024.
F-2
In April 2024, we began a public process to explore the sale of our Bounce multi-cast television network. Bounce, which
is available in approximately 95% of U.S. television broadcast homes, broadcasts a combination of syndicated shows, movies
and original content that is created for Black audiences.
On July 2, 2024, we announced a multi-year agreement with the National Hockey League's Florida Panthers ("Panthers"),
which began with the 2024-2025 season. Under the new agreement, we have the ability to televise all locally produced Panthers
preseason, regular-season and round one games of the postseason with distribution on cable, satellite and over-the-air
television.
On September 27, 2024, we announced plans to significantly reduce Scripps News' national network programming
beginning in the fourth quarter of 2024. As of November 15, 2024, Scripps News was no longer broadcast over the air, although
it remained on streaming and digital platforms with weekday live coverage from the field. Beginning at the start of 2025, the
scaled back Scripps News operation is expected to generate annualized net savings of $35 million.
In January 2025, we announced the formation of a joint venture with Gray Media, Nexstar Media Group, Inc. and
Sinclair, Inc. Leveraging broadcasters’ uniquely efficient network architecture and the ATSC 3.0 transmission standard,
EdgeBeam Wireless, LLC will provide expansive, reliable and secure data delivery services. This partnership creates a
spectrum footprint that no individual broadcaster could achieve on its own, unlocking the potential of ATSC 3.0 to offer
nationwide coverage for data delivery to billions of potential devices on market-disrupting terms. We contributed cash
consideration of $6.4 million for our 25% ownership interest in the joint venture.
On March 10, 2025, we entered into a Transaction Support Agreement (“TSA”) that was reached with certain of the
Company’s lenders. Concurrently, we entered into commitment letters to provide for a new accounts receivable securitization
facility and a new revolving credit facility. Transactions contemplated by the TSA and commitment letters, which still need to
be consummated, include, among others, entering into new revolving credit and asset securitization facilities and the exchange
or repayment of certain of our existing term loans.
Preferred stock dividends declared and paid in 2023 totaled $48.0 million. We did not declare or provide payment for any
of the 2024 quarterly dividends. Following deferral of the first quarter 2024 dividend, the dividend rate on the preferred shares
increased from 8% per annum to 9% per annum and will continue at that rate for the remaining periods that the preferred shares
are outstanding. Deferral of preferred stock dividend payments provides us better flexibility for accelerating deleveraging and
maximizing the paydown of our traditional bank debt. Under the terms of Berkshire Hathaway's preferred equity investment in
Scripps, we are prohibited from paying dividends on and repurchasing our common shares until all preferred shares are
redeemed.
F-3
Results of Operations
The trends and underlying economic conditions affecting operating performance and future prospects differ for each of
our operating segments. Accordingly, you should read the following discussion of our consolidated results of operations in
conjunction with the discussion of the operating performance of our operating segments that follows.
Consolidated Results of Operations
Consolidated results of operations were as follows:
For the years ended December 31,
(in thousands)
2024
Change
2023
Change
2022
Operating revenues
$ 2,509,772
9.5 % $ 2,292,912
(6.5) % $ 2,453,215
Cost of revenues, excluding depreciation and amortization
(1,320,774)
2.9 % (1,283,324)
4.0 % (1,233,769)
Selling, general and administrative expenses, excluding
depreciation and amortization
(606,178)
(1.4) %
(614,769)
(1.3) %
(623,161)
Acquisition and related integration costs
—
—
(1,642)
Restructuring costs
(33,525)
(38,612)
—
Depreciation and amortization of intangible assets
(155,228)
(155,105)
(160,433)
Impairment of goodwill
—
(952,000)
—
Gains (losses), net on disposal of property and equipment
18,424
(2,344)
(5,866)
Operating income (loss)
412,491
(753,242)
428,344
Interest expense
(210,344)
(213,512)
(161,130)
Gain on extinguishment of debt
—
—
8,589
Defined benefit pension plan income
674
650
2,613
Miscellaneous, net
7,160
(1,407)
(1,953)
Income (loss) from operations before income taxes
209,981
(967,511)
276,463
Benefit (provision) for income taxes
(63,763)
19,727
(80,561)
Net income (loss)
$
146,218
$ (947,784)
$
195,902
2024 compared with 2023
Operating revenues increased $217 million or 9.5% in 2024 compared to 2023, driven primarily by an increase in political
revenue of $329 million that was partially offset by a $114 million decrease in core advertising revenue.
Cost of revenues, which is comprised of programming costs and costs associated with distributing our content, increased
$37.5 million or 2.9% in 2024 compared to 2023. Programming expense increased $20.2 million or 2.4% in 2024 compared to
2023. During 2023, we entered into sports rights contracts for the airing of games for the National Women's Soccer League
("NWSL") as well as the Vegas Golden Knights and the Utah Hockey Club (formerly the Arizona Coyotes) in the National
Hockey League ("NHL"). The 2023 NHL contracts began with the start of the 2023-2024 season in October 2023 and ran
through April 2024 and the NWSL contract began with the start of the 2024 season in March 2024. During 2024, we entered
into a sports rights contract for the airing of games for the NHL's Florida Panthers ("Panthers"), which began with the
2024-2025 season in October 2024. The sports rights fees for these contracts increased programming expense by $33.5 million
when compared to the prior year. Additionally, network affiliation fees for our broadcast television stations increased $5.0
million. These increases in programming expense were partially offset by a decrease of $13.8 million in carriage affiliation fees
and a decrease of $4.6 million in syndicated programming costs. The year-over-year increase in cost of revenues was also due
to a $7.2 million increase in production costs, driven by the television production costs associated with the airing of games
under our sports agreements.
Selling, general and administrative expenses are primarily comprised of sales, marketing and advertising expenses,
research costs and costs related to corporate administrative functions. Selling, general and administrative expenses decreased
$8.6 million or 1.4% in 2024 compared to 2023, primarily driven by lower marketing and promotion costs.
F-4
Restructuring costs totaled $33.5 million and $38.6 million in 2024 and 2023, respectively. Restructuring costs in 2024
attributed to the reduction of Scripps News' national news programming included $11.0 million in severance charges and
$3.2 million of programming losses. Restructuring costs incurred in 2024 also included $4.7 million of severance charges for
certain executives that accepted voluntary retirement offers in the fourth quarter and $9.7 million in other severance charges
associated with the strategic reorganization efforts. The 2023 costs included a $13.6 million first quarter charge related to the
write-down of certain programming assets in connection with the shutdown of the TrueReal network. Additionally, 2023
restructuring costs included employee severance related charges of $17.1 million, operating lease impairment charges of
$1.3 million and other restructuring charges primarily attributed to strategic reorganization consulting fees.
Depreciation and amortization of intangible assets remained relatively flat in 2024 compared to 2023.
During 2023, we recorded $952 million of non-cash charges to reduce the carrying value of goodwill associated with our
Scripps Networks reporting unit.
On December 30, 2024, we completed the sale of our San Diego tower sites for cash consideration of $20.0 million and
recognized a pre-tax gain from disposition of $19.2 million.
Interest expense decreased $3.2 million or 1.5% in 2024 compared to 2023 primarily attributed to financing costs incurred
during the third quarter of 2023 related to the amendment of our credit facility.
On February 9, 2024, following the completed sale of Broadcast Music, Inc. ("BMI") to New Mountain Capital, we
received $18.1 million in pre-tax cash proceeds for our equity ownership in BMI. We did not have any carrying value
associated with our BMI investment. In the fourth quarter of 2024, we recorded a $15.0 million non-cash impairment loss for
the write-off of our Misfits gaming investment balance. The gain and loss from these transactions are included in
Miscellaneous, net for 2024.
The effective income tax rate was 30% and 2.0% for 2024 and 2023, respectively. The comparability of our year-over-
year effective tax rate was affected by an $855 million non-deductible expense related to the write-down of Scripps Networks
goodwill in 2023. Differences between our effective income tax rate and the U.S. federal statutory rate are due to the impact of
state taxes, foreign taxes, non-deductible expenses, changes in reserves for uncertain tax positions, excess tax benefits or
expense from the exercise and vesting of share-based compensation awards ($3.2 million expense in 2024 and $1.5 million
expense in 2023), state deferred rate changes ($2.6 million benefit in 2024 and $2.5 million benefit in 2023) and state NOL
valuation allowance changes.
F-5
Operating Performance — As discussed in the Notes to Consolidated Financial Statements, our chief operating decision
maker evaluates operating performance using a measure called segment profit. Segment profit excludes interest, defined benefit
pension plan amounts, income taxes, depreciation and amortization, impairment charges, divested operating units, restructuring
activities, investment results and certain other items that are included in net income (loss) determined in accordance with
accounting principles generally accepted in the United States of America.
For our operating segments, items excluded from segment profit generally result from decisions made in prior periods or
from decisions made by corporate executives rather than the managers of the segments. Depreciation and amortization charges
are the result of decisions made in prior periods regarding the allocation of resources and are therefore excluded from the
measure. Generally, our corporate executives make financing, tax structure and divestiture decisions. Excluding these items
from measurement of segment performance enables us to evaluate operating performance based upon current economic
conditions and decisions made by the managers of those segments in the current period.
Our segment results reflect the impact of intercompany carriage agreements between our local broadcast television
stations and our national networks. The intercompany carriage fee revenue earned by our local broadcast television stations is
equal to the carriage fee expense incurred by our national networks. We also allocate a portion of certain corporate costs and
expenses, including accounting, human resources, employee benefit and information technology to our segments. These
intercompany agreements and allocations are generally amounts agreed upon by management, which may differ from an arms-
length amount.
The other segment caption aggregates our operating segments that are too small to report separately. Costs for centrally
provided services and certain corporate costs that are not allocated to the segments are included in shared services and corporate
costs. These unallocated corporate costs would also include the costs associated with being a public company. Corporate assets
are primarily cash and cash equivalents, property and equipment primarily used for corporate purposes and deferred income
taxes.
Information regarding our operating performance and a reconciliation of such information to the Consolidated Financial
Statements is as follows:
For the years ended December 31,
(in thousands)
2024
Change
2023
Change
2022
Segment operating revenues:
Local Media
$ 1,674,318
19.7 % $ 1,398,230
(6.4) % $ 1,494,357
Scripps Networks
835,809
(6.4) %
893,234
(7.1) %
961,242
Other
18,706
(3.6) %
19,397
32.6 %
14,628
Intersegment eliminations
(19,061)
6.2 %
(17,949)
5.5 %
(17,012)
Total operating revenues
$ 2,509,772
9.5 % $ 2,292,912
(6.5) % $ 2,453,215
Segment profit (loss):
Local Media
$
513,218
78.5 % $
287,439
(25.6) % $
386,369
Scripps Networks
190,175
(15.8) %
225,785
(27.2) %
310,336
Other
(31,632)
19.6 %
(26,451)
45.8 %
(18,140)
Shared services and corporate
(88,941)
(3.3) %
(91,954)
11.8 %
(82,280)
Acquisition and related integration costs
—
—
(1,642)
Restructuring costs
(33,525)
(38,612)
—
Depreciation and amortization of intangible assets
(155,228)
(155,105)
(160,433)
Impairment of goodwill
—
(952,000)
—
Gains (losses), net on disposal of property and equipment
18,424
(2,344)
(5,866)
Interest expense
(210,344)
(213,512)
(161,130)
Gain on extinguishment of debt
—
—
8,589
Defined benefit pension plan income
674
650
2,613
Miscellaneous, net
7,160
(1,407)
(1,953)
Income (loss) from operations before income taxes
$
209,981
$ (967,511)
$
276,463
F-6
Local Media — Our Local Media segment includes more than 60 local television stations and their related digital operations. It
is comprised of 18 ABC affiliates, 11 NBC affiliates, nine CBS affiliates and four FOX affiliates. We also have 11 independent
stations and 10 additional low power stations. Our Local Media segment earns revenue primarily from the sale of advertising to
local, national and political advertisers and retransmission fees received from cable operators, telecommunication companies,
satellite carriers and over-the-top virtual MVPDs.
National television networks offer affiliates a variety of programming and sell the majority of advertising within those
programs. In addition to network programs, we broadcast internally produced local and national programs, syndicated
programs, sporting events and other programs of interest in each station's market. News is the primary focus of our locally-
produced programming.
The operating performance of our Local Media group is most affected by local and national economic conditions,
particularly conditions within the services and automotive categories, and by the volume of advertising purchased by campaigns
for elective office and political issues. The demand for political advertising is significantly higher in the third and fourth
quarters of even-numbered years.
Operating results for our Local Media segment were as follows:
For the years ended December 31,
(in thousands)
2024
Change
2023
Change
2022
Segment operating revenues:
Core advertising
$
552,253
(7.8) % $
598,824
(4.4) % $
626,095
Political
342,889
32,913
(83.4) %
198,519
Distribution
764,083
1.6 %
752,329
14.8 %
655,499
Other
15,093
6.6 %
14,164
(0.6) %
14,244
Total operating revenues
1,674,318
19.7 % 1,398,230
(6.4) % 1,494,357
Segment costs and expenses:
Employee compensation and benefits
437,345
0.3 %
435,916
2.4 %
425,840
Programming
521,615
5.7 %
493,578
2.5 %
481,712
Other expenses
202,140
11.5 %
181,297
(9.5) %
200,436
Total costs and expenses
1,161,100
4.5 % 1,110,791
0.3 % 1,107,988
Segment profit
$
513,218
78.5 % $
287,439
(25.6) % $
386,369
2024 compared with 2023
Revenues
Total Local Media revenues increased $276 million or 20% in 2024 compared to 2023. During this election year, political
revenues increased $310 million in 2024 compared to 2023. Distribution revenues increased $11.8 million or 1.6% in 2024
compared to 2023. During 2023, we completed renewal negotiations on distribution agreements covering about 75% of our
subscriber households. Distribution revenues were favorably impacted by rate increases of 8.0% in 2024 compared to 2023,
which were partially offset by mid-single-digit subscriber declines. Local Media revenues were also impacted by a decrease in
core advertising revenues of $46.6 million or 7.8% in 2024 compared to 2023, due in part to displacement from political
advertising.
Costs and expenses
Employee compensation and benefits increased $1.4 million or 0.3% in 2024 compared to 2023.
Programming expense increased $28.0 million or 5.7% in 2024 compared to 2023. Costs attributed to the Vegas Golden
Knights, Utah Hockey Club (formerly the Arizona Coyotes) and Florida Panthers sports rights agreements increased
programming expense by $25.2 million in 2024 compared to 2023.
Other expenses increased $20.8 million or 11% in 2024 compared to 2023. Production costs from live television
programming increased $7.8 million in 2024 compared to 2023, primarily driven by the costs associated with airing of games
F-7
under our sports agreements. Professional services costs, primarily attributed to political sales activities, increased $5.7 million
in 2024 compared to 2023. The 2024 year-over-year increase was also due to higher news services expense of $3.5 million,
higher rating services cost of $2.5 million and higher advertising and promotion costs of $2.3 million.
Scripps Networks — Our Scripps Networks segment includes national news outlets Scripps News and Court TV and popular
entertainment brands ION, Bounce, Grit, ION Mystery, ION Plus and Laff. The networks reach nearly every U.S. television
home through free over-the-air broadcast, cable/satellite, connected TV and/or digital distribution. Our Scripps Networks
segment earns revenue primarily through the sale of advertising. The advertising received by our national networks can be
subject to seasonal and cyclical variations and is most impacted by national economic conditions.
Operating results for our Scripps Networks segment were as follows:
For the years ended December 31,
(in thousands)
2024
Change
2023
Change
2022
Total operating revenues
$
835,809
(6.4) % $
893,234
(7.1) % $
961,242
Segment costs and expenses:
Employee compensation and benefits
120,862
(3.1) %
124,669
3.7 %
120,202
Programming
354,281
(1.8) %
360,684
5.2 %
342,835
Other expenses
170,491
(6.4) %
182,096
(3.1) %
187,869
Total costs and expenses
645,634
(3.3) %
667,449
2.5 %
650,906
Segment profit
$
190,175
(15.8) % $
225,785
(27.2) % $
310,336
2024 compared with 2023
Revenues
Scripps Networks revenues, which are primarily comprised of advertising revenues, decreased $57.4 million or 6.4% in
2024 compared to 2023. Beginning in the second quarter of 2023, we started to sunset a low-margin programmatic product that
decreased revenues 1.9% year-over-year. The amount of advertising revenue we earn is a function of the pricing negotiated
with advertisers, the number of advertising spots sold and the audience impressions delivered. Lower ratings in our key
monetized demographics unfavorably impacted Scripps Networks revenues by 8.8% year-over-year. Lower ratings were
partially offset by an increase in advertising spots sold which increased revenues 2.0% year-over-year. Additionally, during this
election year, political advertising increased revenues by 2.2%.
Cost and Expenses
Employee compensation and benefits decreased $3.8 million or 3.1% in 2024 compared to 2023 driven by the savings
achieved through our restructuring efforts.
Programming expense decreased $6.4 million or 1.8% in 2024 compared to 2023. Costs attributed to sports rights
agreements with the Women's National Basketball Association and the National Women's Soccer League increased
programming expense by $11.8 million in 2024 compared to 2023. Carriage affiliation fees decreased $13.8 million and
syndicated programming decreased $2.3 million in 2024 compared to 2023.
Other expenses decreased $11.6 million or 6.4% in 2024 compared to 2023. The programmatic product we started
sunsetting in the second quarter of 2023 decreased other expenses 7.8% year-over-year.
F-8
Shared services and corporate
We centrally provide certain services to our operating segments. Such services include accounting, tax, cash management,
procurement, human resources, employee benefits and information technology. The segments are allocated costs for such
services at amounts agreed upon by management. Such allocated costs may differ from amounts that might be negotiated at
arms-length. Costs for such services that are not allocated to the segments are included in shared services and corporate costs.
Shared services and corporate also includes unallocated corporate costs, such as costs associated with being a public company.
Shared services and corporate expenses were $88.9 million in 2024 and $92.0 million in 2023.
Liquidity and Capital Resources
Our primary source of liquidity is our available cash and borrowing capacity under our revolving credit facility. Our
primary source of cash is generated from our ongoing operations and can be affected by various risks and uncertainties. At the
end of December 2024, we had $23.9 million of cash on hand and $578 million of additional borrowing capacity under our
revolving credit facility that currently expires on January 7, 2026. As of December 31, 2024, we did not have a balance drawn
on our credit facility. While we expect to make borrowings and repayments on the facility during the first half of 2025, we do
not anticipate having a balance drawn at the end of the third or fourth quarters of 2025. Any balance drawn at a quarterly
reporting period would be reflected as current debt in our Consolidated Balance Sheet. Our term loan, that has an outstanding
balance of $721 million and matures in May 2026, is our earliest maturing outstanding debt. We do not currently have the
necessary cash on hand or projected future cash flows to fund that debt maturity and are in active discussions with funding
sources to refinance portions of our outstanding debt. Based on our current business plan, we believe our cash flow from
operations will provide sufficient liquidity to meet the Company’s operating needs for the next 12 months.
Cash Flows
For the years ended December 31,
(in thousands)
2024
2023
Net cash provided by operating activities
$
365,680 $
111,604
Net cash used in investing activities
(26,536)
(60,606)
Net cash used in financing activities
(350,611)
(33,706)
Increase (decrease) in cash and cash equivalents
$
(11,467) $
17,292
Cash flows from operating activities
Cash provided by operating activities increased $254 million in 2024 compared to 2023 driven by an $188 million year-
over-year increase in segment profit, a $75.2 million increase in cash provided by changes in certain working capital accounts
and a cash outlay decrease of $17.3 million for programming investments in excess of programming amortization. The increase
in cash provided by changes in working capital accounts was primarily driven by advertising for political campaigns, which are
generally paid in advance. These year-over-year increases to cash provided by operating activities were partially offset by an
increase of $40.7 million in income taxes paid.
Cash flows from investing activities
Cash used in investing activities was $26.5 million in 2024 compared to $60.6 million in 2023. On February 9, 2024,
following the completed sale of Broadcast Music, Inc. ("BMI") to New Mountain Capital, we received $18.1 million in pre-tax
cash proceeds for our equity ownership in BMI. On December 30, 2024, we completed the sale of our San Diego tower sites for
cash consideration of $20.0 million. Capital expenditures totaled $65.3 million in 2024 compared to $59.6 million in 2023.
Cash flows from financing activities
Cash used in financing activities was $351 million in 2024 compared to $33.7 million in 2023. During 2024, we paid
down the $330 million Revolving Credit Facility balance. There were no borrowings under the Revolving Credit Facility at
December 31, 2024. Mandatory principal payments on our term loans totaled $15.6 million in 2024 and 2023. Preferred stock
dividends declared and paid were $48.0 million in 2023.
F-9
Debt
On July 31, 2023, we entered into the Eighth Amendment to the Third Amended Restated Credit Agreement ("Eighth
Amendment"). Under the Eighth Amendment, we have a $585 million Revolving Credit Facility that matures on January 7,
2026. In connection with our credit agreement, we also have $1.3 billion of outstanding balance on our term loans as of
December 31, 2024. The annual required principal payments on these term loans total $15.6 million and the earliest maturity
date for any of the loans is May of 2026.
As of December 31, 2024, we also have $1.3 billion of senior notes outstanding. Senior secured notes totaling $523
million bear interest at a rate of 3.875% per annum and mature on January 15, 2029. Senior unsecured notes have a total
outstanding principal balance of $818 million. The senior unsecured notes that mature on July 15, 2027 bear interest at 5.875%
per annum and the senior unsecured notes that mature on January 15, 2031 bear interest at a rate of 5.375% per annum.
On March 10, 2025, we entered into a Transaction Support Agreement (“TSA”) that was reached with certain of the
Company’s lenders. Concurrently, we entered into commitment letters to provide for a new accounts receivable securitization
facility and a new revolving credit facility. Transactions contemplated by the TSA and commitment letters, which still need to
be consummated, include, among others, entering into new revolving credit and asset securitization facilities and the exchange
or repayment of certain of our existing term loans.
The proposed terms for the new revolving credit facility would provide a $208 million capacity expiring in July 2027
which will extend and substantially replace a portion of our current $585 million revolving credit facility that matures on
January 7, 2026, with the remaining committed amount of the existing revolver still available for draw. The proposed accounts
receivable securitization facilities would provide for draws up to a total of $450 million. Portions of the proceeds from the new
accounts receivable securitization facility are expected, together with cash on hand, to be used to partially repay the principal
balance of our $721 million term loan maturing in May 2026 that is not otherwise exchanged for new term loans.
In connection with the contemplated transactions, consenting lenders holding our term loan due in May 2026 will
exchange such holdings for new term loans due June 2028, with any amounts not exchanged, repaid in full. Additionally,
consenting lenders holding our term loan due in June 2028 will exchange such holdings for new term loans. We currently
anticipate completion of the transactions, as constructed, in April of 2025. Following completion of these transactions, our
earliest maturing outstanding debt will be the $426 million senior notes that are currently due July 15, 2027, subject to
springing maturities in certain of our other debt.
The TSA contains certain customary representations, warranties and other agreements by the parties thereto. The closing
of the term loan refinancings pursuant to the TSA is subject to, and conditioned upon, the satisfaction or waiver of certain
conditions set forth therein, including finalizing the definitive documentation.
Debt Covenants
Our term loans and notes do not have maintenance covenants. The earliest maturity of our term loans and notes is the
second quarter of 2026. The Eighth Amendment to our Revolving Credit Facility, which matures in the first quarter of 2026,
permits a maximum leverage through December 31, 2024 of 5.0 times the two-year average earnings before interest, taxes,
depreciation and amortization (EBITDA) as defined by our credit agreement. Based upon our current outlook, we expect to be
in compliance with that covenant for the next 12 months. The maximum leverage covenant steps down to 4.75 times through
September 30, 2025, and then steps down to 4.50 times thereafter.
Debt Repurchase Program
In February 2023, our Board of Directors provided a new debt repurchase authorization, pursuant to which we may
reduce, through redemptions or open market purchases and retirement, a combination of the outstanding principal balance of
our senior secured and senior unsecured notes. The authorization permits an aggregate principal amount reduction of up to
$500 million and expires on March 1, 2026.
Equity
On January 7, 2021, we issued 6,000 shares of Series A preferred stock, having a face value of $100,000 per share. The
preferred shares are perpetual and will be redeemable at the option of the Company beginning on the fifth anniversary of
issuance, and redeemable at the option of the holders in the event of a Change of Control (as defined in the terms of the
preferred shares), in each case at a redemption price of 105% of the face value, plus accrued and unpaid dividends (whether or
F-10
not declared). Preferred stock dividends declared and paid in 2023 totaled $48.0 million. We did not declare or provide payment
for any of the 2024 quarterly dividends. Deferral of preferred stock dividend payments provides us better flexibility for
accelerating deleveraging and maximizing the paydown of our traditional bank debt. At December 31, 2024, aggregated
undeclared and unpaid cumulative dividends totaled $55.8 million. In connection with the issuance of the preferred shares,
Berkshire Hathaway also received a warrant to purchase up to 23.1 million Class A shares, at an exercise price of $13 per share.
Under the terms of the preferred shares, we are prohibited from paying dividends on and repurchasing our common shares
until all preferred shares are redeemed.
Contractual Obligations
The following table summarizes contractual cash obligations as of December 31, 2024:
Less than
Years
Years
Over
(in thousands)
1 Year
2 & 3
4 & 5
5 Years
Total
Long-term debt: (a)
Principal amounts
$
15,612 $ 1,155,268 $ 1,042,356 $ 392,071 $ 2,605,307
Interest on debt
157,059
216,695
64,005
21,940
459,699
Undeclared and unpaid preferred stock dividends (b)
—
—
—
55,850
55,850
Programming: (c)
Program licenses, network affiliations and other
programming commitments
837,315
735,916
162,638
17,361 1,753,230
Employee compensation and benefits:
Deferred compensation and other post-employment
benefits
4,721
5,049
5,004
18,421
33,195
Employment and talent contracts (d)
74,237
62,441
1,293
—
137,971
Pension obligations (e)
1,468
20,969
29,201
4,953
56,591
Leases (f)
24,450
42,878
30,922
116,843
215,093
Other purchase and service commitments (g)
98,719
62,117
100
—
160,936
Total contractual cash obligations
$ 1,213,581 $ 2,301,333 $ 1,335,519 $ 627,439 $ 5,477,872
(a) — Refer to Note 10. Long-Term Debt of the Notes to Consolidated Financial Statements (Part II, Item 8 of this Form 10-K).
Interest amounts included in the table may differ from amounts actually paid due to changes in SOFR. If there is a balance
outstanding under our Revolving Credit Facility, repayment of those outstanding borrowings are assumed to occur on the
January 2026 expiration of our credit agreement and interest payments would assume the outstanding balance and related
interest rates remain unchanged until the expiration date of our credit agreement. As of December 31, 2024, there were no
borrowings under the Revolving Credit Facility.
(b) — Refer to Note 17. Capital Stock and Share-Based Compensation Plans of the Notes to Consolidated Financial Statements
(Part II, Item 8 of this Form 10-K). Reflects aggregated undeclared and unpaid cumulative dividends related to our Series A
preferred stock.
(c) — Program licenses and sports programming rights fees generally require payments over the terms of the agreements.
Sports programming commitments totaled $217 million in aggregate as of December 31, 2024. Licensed programming includes
both programs that have been delivered and are available for telecast and programs that have not yet been produced. It also
includes payments for our broadcast television station network affiliation agreements and Scripps Networks carriage
agreements with local television broadcasters. If the programs are not produced, our commitments would generally expire
without obligation. Fixed fee amounts payable under our network affiliation and carriage agreements are also included.
Variable amounts, including certain sports programming rights payments that are variable based primarily on revenues, in
excess of the contractual amounts payable to the networks and broadcasters are not included in the amounts above.
(d) — We secure on-air talent for our television stations through multi-year talent agreements. Certain agreements may be
terminated under certain circumstances or at certain dates prior to expiration. We expect our employment and talent contracts
will be renewed or replaced with similar agreements upon their expiration. Amounts due under the contracts, assuming the
contracts are not terminated prior to their expiration, are included in the contractual obligations table.
F-11
(e) — Contractual commitments summarized include payments to meet minimum funding requirements of our defined benefit
pension plans and estimated benefit payments for our unfunded SERPs. Contractual pension obligations reflect anticipated
minimum statutory pension contributions as of December 31, 2024, based upon pension funding regulations in effect at the time
and our current pension assumptions regarding discount rates and returns on plan assets. Actual funding requirements may
differ from amounts presented due to changes in discount rates, returns on plan assets or pension funding regulations that are in
effect at the time. Payments for the SERPs have been estimated over a ten-year period. Accordingly, the amounts in the "over 5
years" column include estimated payments for the periods of 2030-2034. While benefit payments under these plans are
expected to continue beyond 2034, we do not believe it is practicable to estimate payments beyond this period.
(f) — Refer to Note 8. Leases of the Notes to Consolidated Financial Statements (Part II, Item 8 of this Form 10-K).
(g) — We obtain audience ratings, market research and certain other services under multi-year agreements. These agreements
are generally not cancelable prior to expiration of the service agreement. We may also enter into contracts with certain vendors
and suppliers. These contracts typically do not require the purchase of fixed or minimum quantities and generally may be
terminated at any time without penalty. Included in the table are purchase orders placed as of December 31, 2024. The table
does not include any reserves for income taxes recognized because we are unable to reasonably predict the ultimate amount or
timing of settlement of our reserves for income taxes. As of December 31, 2024, our reserves for income taxes totaled $32.5
million, which is reflected as a long-term liability in our Consolidated Balance Sheet.
Critical Accounting Policies and Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States
of America (“GAAP”) requires us to make a variety of decisions that affect reported amounts and related disclosures, including
the selection of appropriate accounting principles and the assumptions on which to base accounting estimates. In reaching such
decisions, we apply judgment based on our understanding and analysis of the relevant circumstances, including our historical
experience, actuarial studies and other assumptions. We are committed to incorporating accounting principles, assumptions and
estimates that promote the representational faithfulness, verifiability, neutrality and transparency of the accounting information
included in the financial statements.
Note 1 to our Consolidated Financial Statements describes the significant accounting policies we have selected for use in
the preparation of our financial statements and related disclosures. We believe the following to be the most critical accounting
policies, estimates and assumptions affecting our reported amounts and related disclosures.
Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill for each reporting unit must be tested for impairment on
an annual basis or when events occur or circumstances change that would indicate the fair value of a reporting unit is below its
carrying value. If the fair value of the reporting unit is less than its carrying value, we would be required to record an
impairment charge.
The following is goodwill by reportable segment as of December 31, 2024:
(in thousands)
Local Media
$
905,494
Scripps Networks
1,055,890
Other
7,190
Total goodwill
$
1,968,574
For our annual impairment testing, we utilized the quantitative approach for performing our test. Under that approach, we
determine the fair value of each reporting unit with consideration to the discounted cash flow method of the income approach,
the general public company (“GPC”) method of the market approach and the guideline transactions method of the market
approach. The weighting or prevalence of these methods in each annual impairment test can be impacted by current market
conditions or the relevance of current data. Particularly for the discounted cash flow analysis, significant judgment is required
to estimate the future cash flows derived from the business and the period of time over which those cash flows will occur, as
well as to determine an appropriate discount rate. The determination of the discount rate is based on a cost of capital model,
using a risk-free rate, adjusted by a stock-beta adjusted risk premium and a size premium. These reporting unit valuations are
dependent on a number of significant estimates and assumptions, including macroeconomic conditions, market growth rates,
competitive activities, cost containment, margin expansion and strategic business plans (inputs of which are categorized as
Level 3 under the fair value hierarchy). While we believe the estimates and judgments used in determining the fair values were
F-12
appropriate, different assumptions with respect to future cash flows, long-term growth rates and discount rates, could produce a
different estimate of fair value. The estimate of fair value assumes certain growth of our businesses, which, if not achieved,
could impact the fair value and possibly result in an impairment of the goodwill.
The GPC method relies upon valuation multiples derived from stock prices and operating values of publicly traded
companies that are comparable to our reporting units. These multiples are then used to develop an estimate of value for the
respective reporting unit. The valuation multiples applied are based on the operating values of the guideline companies divided
by EBITDA. The EBITDA financial measure reflects the mature business stage of our reporting units. The estimated operating
value determined by applying EBITDA to the selected multiple is then increased by a control premium factor derived from
historical control premium indicators from industry transactions.
The guideline transactions method is based on valuation multiples derived from actual transactions for public and private
companies comparable to our reporting units. Similar to the GPC method, these multiples are then used to develop an estimate
of value for the respective reporting unit. When evaluating the respective transactions to include in this valuation method, we
consider the acquirer and target companies involved, the date of the transactions, and the business description, size and financial
condition of the companies, among other factors.
Upon completing our annual test in the fourth quarter of 2024, we determined that the fair value of our Local Media
reporting unit exceeded its carrying value by more than 20% and that the fair value of our Scripps Networks reporting unit
exceeded its carrying value by 1.3%.
Given that the fair value of the Scripps Networks reporting unit currently approximates carrying value, this reporting unit
is more sensitive to changes in assumptions regarding its fair value. While we believe the estimates and judgments used in
determining the fair values were appropriate, these estimates of fair value assume certain levels of growth for the business,
which, if not achieved, could impact the fair value and possibly result in an impairment of the goodwill in future periods. For
example, a 50 basis point increase in the discount rate would reduce the fair value of the Scripps Networks reporting unit by
approximately $110 million.
We have determined that our FCC licenses are indefinite lived assets and not subject to amortization. At December 31,
2024, the carrying value of our television FCC licenses was $779 million, which are tested for impairment annually, or more
frequently if events or changes in circumstances indicate that they might be impaired. We compare the estimated fair value of
each individual FCC license to its carrying amount. If the carrying amount of an indefinite-lived intangible asset exceeds its fair
value, an impairment loss is recognized. Fair value is estimated for our FCC licenses using a method referred to as the
“Greenfield Approach.” This approach uses a discounted cash flow model that incorporates multiple assumptions relating to the
future prospects of each individual FCC license, including market revenues, long-term growth projections, and estimated cash
flows based on market size and station type. The fair value of the FCC license is sensitive to each of the assumptions used in
the Greenfield Approach and a change in any individual assumption could result in the fair value being less than the carrying
value of the asset and an impairment charge being recorded. For example, a 50 basis point increase in the discount rate would
reduce the aggregate fair value of the FCC licenses by approximately $140 million and any resulting impairment charge would
be less than $1.0 million.
Pension Plans — We sponsor a noncontributory defined benefit pension plan as well as non-qualified Supplemental Executive
Retirement Plans ("SERPs"). Both the defined benefit plan and the SERPs have frozen the accrual of future benefits.
The measurement of our pension obligation and related expense is dependent on a variety of estimates, including:
discount rates; expected long-term rate of return on plan assets; and mortality and retirement ages. We review these
assumptions on an annual basis and make modifications to the assumptions based on current rates and trends when appropriate.
In accordance with accounting principles, we record the effects of these modifications currently or amortize them over future
periods. We consider the most critical of our pension estimates to be our discount rate and the expected long-term rate of return
on plan assets.
The assumptions used in accounting for our defined benefit pension plan for 2024 and 2023 are as follows:
2024
2023
Discount rate for expense
5.18 %
5.47 %
Discount rate for obligation
5.67 %
5.18 %
Long-term rate of return on plan assets for expense
5.50 %
5.50 %
F-13
The discount rate used to determine our future pension obligation is based upon a dedicated bond portfolio approach that
includes securities rated Aa or better with maturities matching our expected benefit payments from the plans. The rate is
determined each year at the plan measurement date and affects the succeeding year’s pension cost. Discount rates can change
from year to year based on economic conditions that impact corporate bond yields. A 50 basis point increase or decrease in the
discount rate would decrease or increase our pension obligation as of December 31, 2024 by approximately $19.2 million and
decrease or increase 2025 pension expense by approximately $0.8 million.
Under our asset allocation strategy, approximately 55% of plan assets are invested in a portfolio of fixed income securities
with a duration approximately that of the projected payment of benefit obligations. The remaining 45% of plan assets are
invested in equity securities and other return-seeking assets. The expected long-term rate of return on plan assets is based
primarily upon the target asset allocation for plan assets and capital markets forecasts for each asset class employed. A decrease
in the expected rate of return on plan assets increases pension expense. A 50 basis point change in the 2025 expected long-term
rate of return on plan assets would increase or decrease our 2025 pension expense by approximately $2.0 million.
We had unrecognized accumulated other comprehensive loss related to net actuarial losses for our pension plan and
SERPs of $99.3 million at December 31, 2024. Unrealized actuarial gains and losses result from deferred recognition of
differences between our actuarial assumptions and actual results. In 2024, we had an actuarial gain of $0.2 million.
Recent Accounting Guidance
Refer to Note 2. Recently Adopted and Issued Accounting Standards of the Notes to Consolidated Financial
Statements (Part II, Item 8 of this Form 10-K) for further discussion.
F-14
Quantitative and Qualitative Disclosures about Market Risk
Earnings and cash flow can be affected by, among other things, economic conditions and interest rate changes. We are
also exposed to changes in the market value of our investments.
Our objectives in managing interest rate risk are to limit the impact of interest rate changes on our earnings and cash
flows, and to reduce overall borrowing costs. We may use derivative financial instruments to modify exposure to risks from
fluctuations in interest rates. In accordance with our policy, we do not use derivative instruments unless there is an underlying
exposure, and we do not hold or enter into financial instruments for speculative trading purposes.
We are subject to interest rate risk associated with our credit agreement, as borrowings bear interest at the secured
overnight financing rate ("SOFR") plus respective fixed margin spreads or spreads determined relative to our Company’s
leverage ratio. Accordingly, the interest we pay on our borrowings is dependent on interest rate conditions and the timing of our
financing needs. A 100 basis point increase in SOFR would increase annual interest expense on our variable rate borrowings by
approximately $12.6 million.
The following table presents additional information about market-risk-sensitive financial instruments:
As of December 31, 2024
As of December 31, 2023
(in thousands)
Cost
Basis
Fair
Value
Cost
Basis
Fair
Value
Financial instruments subject to interest rate risk:
Revolving credit facility
$
— $
— $
330,000 $
330,000
Senior secured notes, due in 2029
523,356
384,667
523,356
463,170
Senior unsecured notes, due in 2027
425,667
343,726
425,667
378,843
Senior unsecured notes, due in 2031
392,071
199,956
392,071
286,212
Term loan, due in 2026
721,213
701,380
728,825
727,914
Term loan, due in 2028
543,000
483,270
551,000
546,179
Long-term debt, including current portion
$
2,605,307 $
2,112,999 $
2,950,919 $
2,732,318
Financial instruments subject to market value risk:
Investments held at cost
$
6,353
(a)
$
21,169
(a)
(a)
Includes securities that do not trade in public markets, thus the securities do not have readily determinable fair values. On
February 9, 2024, following the completed sale of Broadcast Music, Inc. ("BMI") to New Mountain Capital, we received
$18.1 million in pre-tax cash proceeds for our equity ownership in BMI. We did not have any carrying value associated
with our BMI investment. Other than our equity interest in BMI, as of December 31, 2023, we estimate the fair values of
our other investments to approximate their carrying values at December 31, 2024 and 2023.
Controls and Procedures
Evaluation of Disclosure Controls and Procedures
The effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e)
under the Securities Exchange Act of 1934) was evaluated as of the date of the financial statements. This evaluation was carried
out under the supervision of and with the participation of management, including the Chief Executive Officer and the Chief
Financial Officer. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the
design and operation of these disclosure controls and procedures are effective. There were no changes to the Company's internal
controls over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the period covered by this report that have
materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
F-15
Management’s Report on Internal Control Over Financial Reporting
Scripps’ management is responsible for establishing and maintaining adequate internal controls designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The
Company’s internal control over financial reporting includes those policies and procedures that:
1.
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company;
2.
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with GAAP and that receipts and expenditures of the Company are being made only in accordance with
authorizations of management and the directors of the Company; and
3.
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the
Company’s assets that could have a material effect on the financial statements.
All internal control systems, no matter how well designed, have inherent limitations, including the possibility of human
error, collusion and the improper overriding of controls by management. Accordingly, even effective internal control can only
provide reasonable, but not absolute assurance with respect to financial statement preparation. Further, because of changes in
conditions, the effectiveness of internal control may vary over time.
As required by Section 404 of the Sarbanes Oxley Act of 2002, management assessed the effectiveness of The E.W.
Scripps Company and subsidiaries' (the “Company”) internal control over financial reporting as of December 31, 2024.
Management’s assessment is based on the criteria established in the Internal Control – Integrated Framework (2013) issued by
the Committee of Sponsoring Organizations of the Treadway Commission. Based upon our assessment, management believes
that the Company maintained effective internal control over financial reporting as of December 31, 2024.
The Company’s independent registered public accounting firm has issued an attestation report on our internal control over
financial reporting as of December 31, 2024. This report appears on page F-19.
Date: March 12, 2025
BY:
/s/ Adam P. Symson
Adam P. Symson
President and Chief Executive Officer
/s/ Jason Combs
Jason Combs
Chief Financial Officer
F-16
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of The E.W. Scripps Company
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of The E.W. Scripps Company and subsidiaries (the
"Company") as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income
(loss), cash flows and equity, for each of the three years in the period ended December 31, 2024, and the related notes
(collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash
flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally
accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in
Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission and our report dated March 12, 2025, expressed an unqualified opinion on the Company's internal control over
financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that
was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that
are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and
we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the
accounts or disclosures to which it relates.
Valuation of Scripps Networks’ Goodwill — Refer to Note 9 to the financial statements
Critical Audit Matter Description
The Company tests goodwill for impairment on an annual basis or when events occur or circumstances change that would
indicate the fair value of a reporting unit is below its carrying value. The Company determines the fair value of each reporting
unit using both income and market approaches. The income approach requires management to make significant estimates and
assumptions including future cash flows derived from the business and the discount rate. The market approach requires use of
market price data of guideline public companies to estimate the fair value of the reporting unit. Changes in these assumptions
could result in significantly different estimates of the fair values.
Management performed its annual impairment analysis during the fourth quarter of 2024. As a result of the analysis,
management concluded that the fair value of the Scripps Networks reporting unit exceeded its carrying value by 1.3%. As of
December 31, 2024, Scripps Networks’ goodwill balance was approximately $1 billion.
F-17
We identified the valuation of the Scripps Networks reporting unit as a critical audit matter because of the significant estimates
and assumptions management utilized in determining the fair value of this reporting unit. These estimates and assumptions
required a high degree of auditor judgment and an increased extent of effort when performing audit procedures to evaluate the
reasonableness of management’s forecasts of future cash flows as well as the selection of certain valuation assumptions such as
the discount rate, long-term growth rate, and valuation multiples, including the need to involve our fair value specialists.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the forecasts of future cash flows as well as the selection of the discount rate, long-term growth
rate, and valuation multiples used to estimate the fair value of Scripps Networks included the following, among others:
•
We inquired of management to understand the process being used by the Company to estimate the fair value of Scripps
Networks.
•
We tested the design and operating effectiveness of the Company’s internal controls over the valuation of Scripps
Networks, including controls over forecasts of projected future cash flows as well as the selection of the discount rate,
long-term growth rate, and valuation multiples.
•
We evaluated the reasonableness of management’s future cash flow projections, specifically related to revenue and
EBITDA assumptions, by comparing the forecasts to:
◦
Historical cash flows.
◦
Underlying analysis detailing business strategies and growth plans, including consideration of the current
economic environment.
◦
Internal communications to management and the Board of Directors.
◦
Forecasted information included in analyst and industry reports for the Company and certain of its peer
companies.
•
With the assistance of our fair value specialists, we evaluated the discount rate, long-term growth rate and valuation
multiples selected by:
◦
Testing the underlying source information and the mathematical accuracy of the calculations.
◦
Developing a range of independent estimates for the discount rate and comparing those to the rate selected by
management.
◦
Utilizing industry and market-specific growth trends to assess the reasonableness of the long-term growth rate
selected by management.
◦
Developing a range of independent estimates for the valuation multiples and comparing those to the multiples
selected by management.
/s/ Deloitte & Touche LLP
Cincinnati, Ohio
March 12, 2025
We have served as the Company’s auditor since at least 1959; however, an earlier year could not be reliably determined.
F-18
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of The E.W. Scripps Company
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of The E.W. Scripps Company and subsidiaries (the “Company”)
as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all
material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in
Internal Control — Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated financial statements as of and for the year ended December 31, 2024, of the Company and our
report dated March 12, 2025, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report
on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control
over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk
that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Deloitte & Touche LLP
Cincinnati, Ohio
March 12, 2025
F-19
The E.W. Scripps Company
Consolidated Balance Sheets
As of December 31,
(in thousands, except share data)
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
23,852 $
35,319
Accounts receivable (less allowances — $7,449 and $5,041)
568,193
610,541
Miscellaneous
37,970
30,233
Total current assets
630,015
676,093
Investments
8,884
23,265
Property and equipment
453,900
455,255
Operating lease right-of-use assets
90,136
99,194
Goodwill
1,968,574
1,968,574
Other intangible assets
1,635,488
1,727,178
Programming
402,459
449,943
Miscellaneous
9,119
10,618
Total Assets
$ 5,198,575 $ 5,410,120
Liabilities and Equity
Current liabilities:
Accounts payable
$
100,669 $
76,383
Unearned revenue
18,159
12,181
Current portion of long-term debt
15,612
15,612
Accrued liabilities:
Employee compensation and benefits
81,462
60,869
Accrued income taxes
33,179
35,856
Programming liability
140,502
171,860
Accrued interest
31,407
32,030
Miscellaneous
35,811
43,934
Other current liabilities
25,593
29,094
Total current liabilities
482,394
477,819
Long-term debt (less current portion)
2,560,560
2,896,824
Deferred income taxes
293,634
307,399
Operating lease liabilities
79,399
87,714
Other liabilities (less current portion)
464,574
484,181
Commitments and contingencies (Note 16)
Equity:
Preferred stock, $0.01 par — authorized: 25,000,000 shares; none outstanding
—
—
Preferred stock — Series A, $100,000 par; 6,000 shares issued and outstanding
(redemption value of $688,309 at December 31, 2024)
416,854
414,549
Common stock, $0.01 par:
Class A — authorized: 240,000,000 shares; issued and outstanding:
2024 - 74,694,541 shares; 2023 - 72,843,881 shares
747
729
Voting — authorized: 60,000,000 shares; issued and outstanding:
2024 - 11,932,722 shares; 2023- 11,932,722 shares
119
119
Total preferred and common stock
417,720
415,397
Additional paid-in capital
1,451,604
1,438,518
Accumulated deficit
(476,004)
(622,222)
Accumulated other comprehensive loss, net of income taxes
(75,306)
(75,510)
Total equity
1,318,014
1,156,183
Total Liabilities and Equity
$ 5,198,575 $ 5,410,120
See Notes to Consolidated Financial Statements.
F-20
The E.W. Scripps Company
Consolidated Statements of Operations
For the years ended December 31,
(in thousands, except per share data)
2024
2023
2022
Operating Revenues:
Advertising
$ 1,692,714 $ 1,477,999 $ 1,757,389
Distribution
784,573
779,217
660,317
Other
32,485
35,696
35,509
Total operating revenues
2,509,772
2,292,912
2,453,215
Operating Expenses:
Cost of revenues, excluding depreciation and amortization
1,320,774
1,283,324
1,233,769
Selling, general and administrative expenses, excluding depreciation and
amortization
606,178
614,769
623,161
Acquisition and related integration costs
—
—
1,642
Restructuring costs
33,525
38,612
—
Depreciation
61,992
60,725
61,943
Amortization of intangible assets
93,236
94,380
98,490
Impairment of goodwill
—
952,000
—
Losses (gains), net on disposal of property and equipment
(18,424)
2,344
5,866
Total operating expenses
2,097,281
3,046,154
2,024,871
Operating income (loss)
412,491
(753,242)
428,344
Interest expense
(210,344)
(213,512)
(161,130)
Gain on extinguishment of debt
—
—
8,589
Defined benefit pension plan income
674
650
2,613
Miscellaneous, net
7,160
(1,407)
(1,953)
Income (loss) from operations before income taxes
209,981
(967,511)
276,463
Provision (benefit) for income taxes
63,763
(19,727)
80,561
Net income (loss)
146,218
(947,784)
195,902
Preferred stock dividends
(58,615)
(50,305)
(50,305)
Net income (loss) attributable to the shareholders of The E.W. Scripps Company
$
87,603 $ (998,089) $
145,597
Net income (loss) per basic share of common stock attributable to the
shareholders of The E.W. Scripps Company
$
1.01 $
(11.84) $
1.71
Net income (loss) per diluted share of common stock attributable to the
shareholders of The E.W. Scripps Company
$
1.01 $
(11.84) $
1.62
Weighted average shares outstanding:
Basic
85,738
84,266
83,220
Diluted
86,067
84,266
87,346
See Notes to Consolidated Financial Statements.
F-21
The E.W. Scripps Company
Consolidated Statements of Comprehensive Income (Loss)
For the years ended December 31,
(in thousands)
2024
2023
2022
Net income (loss)
$
146,218 $ (947,784) $
195,902
Changes in defined benefit pension plans, net of tax of $93, $658, and $(1,158)
290
2,080
(3,614)
Other, net of tax of $(28), $(38) and $17
(86)
(119)
52
Total comprehensive income (loss) attributable to preferred and common
stockholders
$
146,422 $ (945,823) $
192,340
See Notes to Consolidated Financial Statements.
F-22
The E.W. Scripps Company
Consolidated Statements of Cash Flows
For the years ended December 31,
(in thousands)
2024
2023
2022
Cash Flows from Operating Activities:
Net income (loss)
$
146,218 $ (947,784) $
195,902
Adjustments to reconcile net income (loss) to net cash flows from operating
activities:
Depreciation and amortization
155,228
155,105
160,433
Impairment of goodwill
—
952,000
—
Losses (gains), net on disposal of property and equipment
(18,424)
2,344
5,866
Gain on extinguishment of debt
—
—
(8,589)
Programming assets and liabilities
(3,245)
(20,504)
(27,144)
Restructuring impairment charges
3,110
14,933
—
Losses (gains) on sale of investments
(19,895)
—
—
Impairment of investments
15,000
—
—
Deferred income taxes
(149)
(63,698)
12,915
Stock and deferred compensation plans
17,992
25,631
19,461
Pension contributions, net of income/expense
(2,052)
(2,107)
(29,196)
Other changes in certain working capital accounts, net
58,898
(16,275)
(35,800)
Miscellaneous, net
12,999
11,959
17,575
Net cash provided by operating activities
365,680
111,604
311,423
Cash Flows from Investing Activities:
Acquisitions, net of cash acquired
—
—
(13,797)
Additions to property and equipment
(65,256)
(59,627)
(45,792)
Purchase of investments
(1,729)
(1,000)
(7,373)
Proceeds from sale of investments
19,985
—
—
Proceeds from FCC repack
—
—
2,670
Proceeds from sale of property and equipment
20,464
21
373
Miscellaneous, net
—
—
(2,474)
Net cash used in investing activities
(26,536)
(60,606)
(66,393)
Cash Flows from Financing Activities:
Net borrowings (payments) under revolving credit facility
(330,000)
330,000
—
Payments on long-term debt
(15,612)
(299,862)
(278,095)
Dividends paid on preferred stock
—
(48,000)
(48,000)
Tax payments related to shares withheld for vested stock and RSUs
(1,882)
(4,955)
(8,872)
Miscellaneous, net
(3,117)
(10,889)
7,484
Net cash used in financing activities
(350,611)
(33,706)
(327,483)
Increase (decrease) in cash, cash equivalents and restricted cash
(11,467)
17,292
(82,453)
Cash, cash equivalents and restricted cash:
Beginning of year
35,319
18,027
100,480
End of year
$
23,852 $
35,319 $
18,027
Supplemental Cash Flow Disclosures
Interest paid
$
195,856 $
195,832 $
150,796
Income taxes paid
$
71,811 $
31,121 $
61,744
Non-cash investing and financing information
Accrued capital expenditures
$
5,351 $
5,130 $
2,254
See Notes to Consolidated Financial Statements.
F-23
The E.W. Scripps Company
Consolidated Statements of Equity
(in thousands, except share data)
Preferred
Stock
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
Income (Loss)
("AOCI")
Total
Equity
As of December 31, 2021
$ 409,939 $
826 $ 1,428,460 $
205,118 $
(73,909) $ 1,970,434
Comprehensive income (loss)
—
—
—
195,902
(3,562)
192,340
Preferred stock dividends: $8,000 per share,
$2,305 of issuance costs accretion
2,305
—
—
(50,305)
—
(48,000)
Compensation plans: 1,003,328 net shares
issued *
—
10
16,041
—
—
16,051
As of December 31, 2022
412,244
836 1,444,501
350,715
(77,471) 2,130,825
Comprehensive income (loss)
—
—
—
(947,784)
1,961 (945,823)
Preferred stock dividends: $8,000 per share,
$2,305 of issuance costs accretion
2,305
—
(25,152)
(25,153)
—
(48,000)
Compensation plans: 1,194,546 net shares
issued *
—
12
19,169
—
—
19,181
As of December 31, 2023
414,549
848 1,438,518
(622,222)
(75,510) 1,156,183
Comprehensive income (loss)
—
—
—
146,218
204
146,422
Preferred stock dividends: $2,305 of
issuance costs accretion
2,305
—
(2,305)
—
—
—
Compensation plans: 1,850,660 net shares
issued *
—
18
15,391
—
—
15,409
As of December 31, 2024
$ 416,854 $
866 $ 1,451,604 $ (476,004) $
(75,306) $ 1,318,014
* Net of tax payments related to shares withheld for vested stock and RSUs of $1,882 in 2024, $4,955 in 2023 and $8,872 in
2022.
See Notes to Consolidated Financial Statements.
F-24
THE E.W. SCRIPPS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
As used in the Notes to Consolidated Financial Statements, the terms “Scripps,” “Company,” “we,” “our,” or “us” may,
depending on the context, refer to The E.W. Scripps Company, to one or more of its consolidated subsidiary companies or to all
of them taken as a whole.
Nature of Operations — We are a diverse media enterprise, serving audiences and businesses through a portfolio of local
television stations and national news and entertainment networks. All of our businesses also have digital presences across
online, mobile, connected television and social platforms, reaching consumers on all devices and platforms they use to consume
content. Our media businesses are organized into the following reportable segments: Local Media, Scripps Networks and Other.
Additional information for our segments is presented in the Notes to Consolidated Financial Statements.
Basis of Presentation — Certain amounts in the prior periods have been reclassified to conform to the current period's
presentation.
Concentration Risks — Our operations are geographically dispersed and we have a diverse customer base. We believe bad
debt losses resulting from default by a single customer, or defaults by customers in any depressed region or business sector,
would not have a material effect on our financial position, results of operations or cash flows.
We derive approximately 67% of our operating revenues from advertising. Changes in the demand for such services, both
nationally and in individual markets, can affect operating results.
Use of Estimates — Preparing financial statements in accordance with accounting principles generally accepted in the United
States of America requires us to make a variety of decisions that affect the reported amounts and the related disclosures. Such
decisions include the selection of accounting principles that reflect the economic substance of the underlying transactions and
the assumptions on which to base accounting estimates. In reaching such decisions, we apply judgment based on our
understanding and analysis of the relevant circumstances, including our historical experience, actuarial studies and other
assumptions.
Our financial statements include estimates and assumptions used in accounting for our defined benefit pension plan; the
periods over which long-lived assets are depreciated or amortized; the fair value of long-lived assets, goodwill and indefinite
lived assets; the liability for uncertain tax positions and valuation allowances against deferred income tax assets; the fair value
of assets acquired and liabilities assumed in business combinations; and self-insured risks.
While we re-evaluate our estimates and assumptions on an ongoing basis, actual results could differ from those estimated
at the time of preparation of the financial statements.
Consolidation — The Consolidated Financial Statements include our accounts and those of our wholly-owned and majority-
owned subsidiaries and variable interest entities ("VIEs") for which we are the primary beneficiary. We are the primary
beneficiary of a VIE when we have the power to direct the activities of the VIE that most significantly impact the economic
performance of the VIE and have the obligation to absorb losses or the right to receive returns that would be significant to the
VIE. All intercompany transactions and account balances have been eliminated in consolidation.
Investments in entities over which we have significant influence but not control are accounted for using the equity method
of accounting. Income from equity method investments represents our proportionate share of net income generated by equity
method investees.
Nature of Products and Services — The following is a description of principal activities from which we generate revenue.
Core Advertising — Core advertising is comprised of sales to local and national businesses. The advertising includes a
combination of broadcast spots as well as digital and connected TV advertising. Pricing of advertising time is based on
audience size and share, the demographic of our audiences and the demand for our limited inventory of commercial time. Local
advertising time is sold by each station's local sales staff who call upon advertising agencies and local businesses. National
advertising time is generally sold by calling upon advertising agencies. Digital revenues are primarily generated from the sale of
advertising to local and national customers on our business websites, tablet and mobile products, over-the-top apps and other
platforms.
F-25
Political Advertising — Political advertising is generally sold through our Washington, D.C. sales office. Advertising is
sold to presidential, gubernatorial, U.S. Senate and House of Representative candidates, as well as for state and local issues. It is
also sold to political action groups (PACs) and other advocacy groups.
Distribution Revenues — We earn revenues from cable operators, satellite carriers, other multi-channel video
programming distributors (collectively "MVPDs"), other online video distributors and subscribers for access rights to our local
broadcast signals. These arrangements are generally governed by multi-year contracts and the fees we receive are typically
based on the number of subscribers the respective distributor has in our markets and the contracted rate per subscriber.
Refer to Note 15. Segment Information for further information, including revenue by significant product and service
offering.
Revenue Recognition — Revenue is measured based on the consideration we expect to be entitled to in exchange for promised
goods or services provided to customers, and excludes any amounts collected on behalf of third parties. Revenue is recognized
upon transfer of control of promised products or services to customers.
Advertising — Advertising revenue is recognized, net of agency commissions, over time primarily as ads are aired or
impressions are delivered and any contracted audience guarantees are met. We apply the practical expedient to recognize
revenue at the amount we have the right to invoice, which corresponds directly to the value a customer has received relative to
our performance. For advertising sold based on audience guarantees, audience deficiency may result in an obligation to deliver
additional advertisements to the customer. To the extent that we do not satisfy contracted audience ratings, we record deferred
revenue until such time that the audience guarantee has been satisfied.
Distribution — Our primary source of distribution revenue is from retransmission consent contracts with MVPDs.
Retransmission revenues are considered licenses of functional intellectual property and are recognized at the point in time the
content is transferred to the customer. MVPDs report their subscriber numbers to us generally on a 30- to 90-day lag. Prior to
receiving the MVPD reporting, we record revenue based on estimates of the number of subscribers, utilizing historical levels
and trends of subscribers for each MVPD.
Cost of Revenues — Cost of revenues reflects the cost of providing our broadcast signals, programming and other content to
respective distribution platforms. The costs captured within the cost of revenues caption include programming, content
distribution, satellite transmission fees, production and operations and other direct costs.
Cash Equivalents — Cash equivalents represent highly liquid investments with maturity of less than three months when
acquired.
Contract Balances — Timing of revenue recognition may differ from the timing of cash collection from customers. We record
a receivable when revenue is recognized prior to cash receipt, or unearned revenue when cash is collected in advance of revenue
being recognized.
We extend credit to customers based upon our assessment of the customer’s financial condition. Collateral is generally not
required from customers. Payment terms may vary by contract type, although our terms generally include a requirement of
payment within 30 to 90 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we
have determined our contracts do not include a significant financing component. The primary purpose of our invoicing terms is
to provide customers with simplified and predictable ways of purchasing our products and services.
F-26
The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable
balance. We determine the allowance based on known troubled accounts, historical experience and other currently available
evidence. A rollforward of the allowance for doubtful accounts is as follows:
(in thousands)
January 1, 2022
$
4,256
Charged to costs and expenses
1,674
Amounts charged off, net
(967)
Balance as of December 31, 2022
4,963
Charged to costs and expenses
14,786
Amounts charged off, net
(14,708)
Balance as of December 31, 2023
5,041
Charged to costs and expenses
15,875
Amounts charged off, net
(13,467)
Balance as of December 31, 2024
$
7,449
We record unearned revenue when cash payments are received in advance of our performance. We generally require
advance payment for advertising contracts with political advertising customers. Unearned revenue totaled $18.2 million at
December 31, 2024 and substantially all is expected to be recognized within revenue over the next 12 months. Unearned
revenue totaled $12.2 million at December 31, 2023. We recorded $7.6 million of revenue in 2024 that was included in
unearned revenue at December 31, 2023.
Assets Recognized from the Costs to Obtain a Contract with a Customer — We recognize an asset for the incremental
costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We apply and
use the practical expedient in the revenue guidance to expense costs as incurred for costs to obtain a contract when the
amortization period is one year or less. This expedient applies to advertising sales commissions since advertising contracts are
short-term in nature.
Investments — From time to time, we make investments in private companies. Investment securities can be impacted by
various market risks, including interest rate risk, credit risk and overall market volatility. Due to the level of risk associated with
certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near
term. Such changes could materially affect the amounts reported in our financial statements.
We record investments in private companies not accounted for under the equity method at cost, net of impairment write-
downs, because no readily determinable market price is available.
We regularly review our investments to determine if there has been any other-than-temporary decline in value. These
reviews require management judgments that often include estimating the outcome of future events and determining whether
factors exist that indicate impairment has occurred. We evaluate, among other factors, the extent to which cost exceeds fair
value; the duration of the decline in fair value below cost; and the current cash position, earnings and cash forecasts and near-
term prospects of the investee. We reduce the cost basis when a decline in fair value below cost is determined to be other than
temporary, with the resulting adjustment charged against earnings.
Property and Equipment — Property and equipment is carried at cost less depreciation. We compute depreciation using the
straight-line method over estimated useful lives as follows:
Buildings and improvements
15 to 45 years
Leasehold improvements
Shorter of term of lease or useful life
Broadcast transmission towers and related equipment
15 to 35 years
Other broadcast and program production equipment
3 to 15 years
Computer hardware
3 to 5 years
Office and other equipment
3 to 10 years
F-27
Programming — Programming includes the cost of national television network programming, carriage agreements with local
television broadcasters, programming produced by us or for us by independent production companies, rights acquired under
multi-year sports programming agreements and programs licensed under agreements with independent producers.
Our network affiliation agreements require the payment of affiliation fees to the network. Network affiliation fees consist
of pre-determined fixed fees in all cases and variable payments based on a share of retransmission revenues above the fixed fees
for some of our agreements.
The costs of programming produced by us or for us by independent production companies is charged to expense over
estimated useful lives based upon expected future cash flows. The realizable value of internal costs incurred for trial footage at
Court TV, including employee compensation and benefits, are capitalized and amortized based upon expected future cash
flows. All other internal costs to produce daily or live broadcast shows, such as news, sports or daily magazine shows, are
expensed as incurred.
The costs of programming acquired under multi-year sports rights agreements are capitalized if the rights payments are
made before the related economic benefit has been received. We amortize sports programming assets based upon expected cash
flows over the term of the rights agreement.
Program licenses principally consist of television series and films. Program licenses generally have fixed terms, limit the
number of times we can air the programs and require payments over the terms of the licenses. We record licensed program
assets and liabilities when the license period has commenced and the programs are available for broadcast. We do not discount
program licenses for imputed interest. We amortize program licenses based upon expected cash flows over the term of the
license agreement.
Progress payments on programs not yet available for broadcast are recorded as deposits within programming assets.
Program assets are predominantly monetized as a group on each of our respective national networks, broadcast television
stations and digital content offerings. For program assets predominantly monetized within a network or television station group,
when an event or change in circumstances indicates a change in the expected usefulness of the content or that the fair value may
be less than unamortized costs, fair value of the content is aggregated at the group level by considering expected future revenue
generation. Estimates of future revenues consider historical airing patterns and future plans for airing content, including any
changes in strategy. An impairment charge is recorded if the fair value of a film group is less than the film group’s carrying
value. Programming and development costs for programs we have determined will not be produced, are fully expensed in the
period the determination is made.
For our program assets available for broadcast, estimated amortization for each of the next five years is $147.7 million in
2025, $112.6 million in 2026, $72.1 million in 2027, $33.6 million in 2028, $16.3 million in 2029 and $4.8 million thereafter.
Actual amortization in each of the next five years will exceed the amounts currently recorded as program assets available for
broadcast, as we will continue to produce and license additional programs. The unamortized balance of program assets are
classified as non-current assets in our Consolidated Balance Sheets.
Program rights liabilities payable within the next twelve months are included as current liabilities and noncurrent
program rights liabilities are included in other noncurrent liabilities.
FCC Repack — In April 2017, the Federal Communications Commission (“FCC”) began a process of reallocating the
broadcast spectrum (“repack”). Specifically, the FCC was requiring certain television stations to change channels and/or modify
their transmission facilities. The U.S. Congress passed legislation which provided the FCC with a fund to reimburse all
reasonable costs incurred by stations operating under a full power license and a portion of the costs incurred by stations
operating under a low power license that are reassigned to new channels.
The total amount of consideration collected from the FCC was recorded as a deferred liability and is recognized against
depreciation expense in the same manner that the underlying FCC repack fixed assets are depreciated. Deferred FCC repack
income totaled $37.7 million at December 31, 2024 and $41.9 million at December 31, 2023.
Leases — We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use
(“ROU”) assets, other current liabilities and operating lease liabilities in our Consolidated Balance Sheets. Finance leases are
included in property and equipment and other long-term liabilities in our Consolidated Balance Sheets.
Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to
make lease payments arising from the lease. Lease assets and liabilities are recognized at the commencement date based on the
F-28
present value of lease payments over the lease term. As the implicit rate is not readily determinable for most of our leases, we
use our incremental borrowing rate when determining the present value of lease payments. The incremental borrowing rate
represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease
payments on a collateralized basis over the term of the lease. Our lease assets also include any payments made at or before
commencement and are reduced by any lease incentives. Our lease terms may include options to extend or terminate the lease
when it is reasonably certain that we will exercise that option. Operating lease expense is recognized on a straight-line basis
over the lease term.
Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill represents the cost of acquisitions in excess of the
acquired businesses’ tangible assets and identifiable intangible assets.
FCC licenses represent the value assigned to the broadcast licenses of acquired broadcast television stations. Broadcast
television stations are subject to the jurisdiction of the FCC, which prohibits the operation of stations except in accordance with
an FCC license. FCC licenses stipulate each station’s operating parameters as defined by channels, effective radiated power and
antenna height. FCC licenses are granted for a term of up to eight years, and are renewable upon request. We have never had a
renewal request denied and all previous renewals have been for the maximum term.
We do not amortize goodwill or our FCC licenses, but we review them for impairment at least annually or any time events
occur or conditions change that would indicate it is more likely than not the fair value of a reporting unit is below its carrying
value. We perform our annual impairment review during the fourth quarter of each year in conjunction with our annual
planning cycle. We also assess, at least annually, whether our FCC licenses, classified as indefinite-lived intangible assets,
continue to have indefinite lives.
We review goodwill for impairment based upon our reporting units, which are defined as operating segments or groupings
of businesses one level below the operating segment level. Reporting units with similar economic characteristics are aggregated
into a single unit when testing goodwill for impairment. Our reporting units are Local Media, Scripps Networks and Tablo.
Amortizable Intangible Assets — Television network affiliations represents the value assigned to an acquired broadcast
television station’s relationship with a national television network. Television stations affiliated with national television
networks typically have greater profit margins than independent television stations, primarily due to audience recognition of the
television station as a network affiliate. We amortize these network affiliation relationships on a straight-line basis over
estimated useful lives of 20 years.
We amortize customer lists and other intangible assets in relation to their expected future cash flows over estimated useful
lives of up to 20 years.
Impairment of Long-Lived Assets — We review long-lived assets (primarily property and equipment, ROU assets and
amortizable intangible assets) for impairment whenever events or circumstances indicate the carrying amounts of the assets may
not be recoverable. Recoverability is determined by comparing the aggregate forecasted undiscounted cash flows derived from
the operation of the assets to the carrying amount of the assets. If the aggregate undiscounted cash flow is less than the carrying
amount of the assets, the assets are written down to fair value. We determine fair value based on discounted cash flows or
appraisals. We report long-lived assets to be disposed of at the lower of carrying amount or fair value less costs to sell.
Self-Insured Risks — We are self-insured, up to certain limits, for general and automobile liability, employee health, disability
and workers’ compensation claims and certain other risks. Estimated liabilities for unpaid claims totaled $10.2 million at
December 31, 2024 and $10.9 million at December 31, 2023. We estimate liabilities for unpaid claims using actuarial
methodologies and our historical claims experience. While we re-evaluate our assumptions and review our claims experience on
an ongoing basis, actual claims paid could vary significantly from estimated claims, which would require adjustments to
expense.
Income Taxes — We recognize deferred income taxes for temporary differences between the tax basis and reported amounts of
assets and liabilities that will result in taxable or deductible amounts in future years. We establish a valuation allowance if we
believe that it is more likely than not that we will not realize some or all of the deferred tax assets.
We record a liability for unrecognized tax benefits resulting from uncertain tax positions taken or that we expect to take in
a tax return. Interest and penalties associated with such tax positions are included in the tax provision. The liability for
additional taxes and interest is included in other liabilities in the Consolidated Balance Sheets.
F-29
Risk Management Contracts — We do not hold derivative financial instruments for trading or speculative purposes and we
do not hold leveraged contracts. From time to time, we may use derivative financial instruments to limit the impact of interest
rate fluctuations on our earnings and cash flows.
Stock-Based Compensation — We have a Long-Term Incentive Plan (the “Plan”) which is described more fully in Note 17.
The Plan provides for the award of incentive and nonqualified stock options, stock appreciation rights, restricted stock units
("RSUs") and unrestricted Class A Common shares and performance units to key employees and non-employee directors.
We recognize compensation cost based on the grant-date fair value of the award. We determine the fair value of awards
that grant the employee the underlying shares by the fair value of a Class A Common share on the date of the award.
Certain awards of RSUs have performance conditions under which the number of shares granted is determined by the
extent to which such performance conditions are met (“Performance Shares”). Compensation costs for such awards are
measured by the grant-date fair value of a Class A Common share and the number of shares earned. In periods prior to
completion of the performance period, compensation costs are based upon estimates of the number of shares that will be earned.
Compensation costs are recognized on a straight-line basis over the requisite service period of the award. The impact of
forfeitures is recognized as they occur. The requisite service period is generally the vesting period stated in the award. Grants to
retirement-eligible employees are expensed immediately and grants to employees who will become retirement eligible prior to
the end of the stated vesting period are expensed over such shorter period because stock compensation grants vest upon the
retirement eligibility of the employee.
Earnings Per Share (“EPS”) — Unvested awards of share-based payments with non-forfeitable rights to receive dividends or
dividend equivalents, such as certain of our RSUs, are considered participating securities for purposes of calculating EPS.
Under the two-class method, we allocate a portion of net income to these participating securities and therefore exclude that
income from the calculation of EPS for common stock. We do not allocate losses to the participating securities.
The following table presents information about basic and diluted weighted-average shares outstanding:
For the years ended December 31,
(in thousands)
2024
2023
2022
Numerator (for basic and diluted earnings per share)
Net income (loss)
$
146,218 $
(947,784) $
195,902
Less income allocated to RSUs
(709)
—
(3,662)
Less preferred stock dividends
(58,615)
(50,305)
(50,305)
Numerator for basic and diluted earnings per share
$
86,894 $
(998,089) $
141,935
Denominator
Basic weighted-average shares outstanding
85,738
84,266
83,220
Effect of dilutive securities
329
—
4,126
Diluted weighted-average shares outstanding
86,067
84,266
87,346
The dilutive effects of performance-based stock awards are included in the computation of diluted earnings per share to
the extent the related performance criteria are met through the respective balance sheet reporting date. As of December 31,
2024, potential dilutive securities representing 420,000 shares were excluded from the computation of diluted earnings per
share as the related performance criteria were not yet met, although the Company expects to meet various levels of criteria in
the future.
For the year ended December 31, 2023, we incurred a net loss to shareholders and the inclusion of RSUs would be anti-
dilutive. The December 31, 2023 diluted EPS calculation excluded the effect from 3.3 million outstanding RSUs that were anti-
dilutive. For the years ended December 31, 2024 and December 31, 2022, there were 1.2 million and 0.1 million of outstanding
RSUs that were anti-dilutive, respectively. The December 31, 2024 and 2023 basic and dilutive EPS calculations also excluded
the impact of the common stock warrant as the effect would be anti-dilutive.
F-30
2. Recently Adopted and Issued Accounting Standards
Recently Issued Accounting Standards
In November 2024, the Financial Accounting Standards Board ("FASB") issued new guidance on disaggregation of
income statement expenses. The guidance requires entities to disaggregate any relevant expense caption presented on the face
of the income statement within continuing operations into the following required natural expense categories: (1) purchases of
inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion and
amortization recognized as part of oil-and gas-producing activities or other types of depletion expenses. Such disclosures must
be made on an annual and interim basis in a tabular format in the footnotes to the financial statements. The guidance does not
change the expense captions an entity presents on the face of the income statement. The guidance also provides clarification
regarding identifying relevant expense captions. Furthermore, certain other expenses and gains or losses that must be disclosed
under existing U.S. GAAP, and that are recorded in a relevant expense caption, must be presented in the same tabular disclosure
on an annual, and, when applicable, interim basis. In addition, the guidance requires entities to disclose selling expenses on an
annual and interim basis. The guidance does not define selling expenses, rather, entities will make their own determination of
the composition of selling expenses and disclose the definition on an annual basis. The guidance is effective for our annual
periods beginning in 2027 and interim periods beginning in the first quarter of 2028, with early adoption permitted. The
guidance will be applied on a prospective basis, but retrospective application is permitted. We are currently evaluating the
potential impact of adopting this new guidance on our Notes to Consolidated Financial Statements.
In December 2023, the FASB issued new guidance that modifies the rules on income tax disclosures. The guidance
requires entities to disclose: (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations
before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from
continuing operations (separated by federal, state and foreign). The guidance also requires entities to disclose their income tax
payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for our annual
periods beginning in 2025, with early adoption permitted. The guidance will be applied on a prospective basis, but retrospective
application is permitted. We are currently evaluating the potential impact of adopting this new guidance on our Consolidated
Financial Statements and related disclosures.
Recently Adopted Accounting Standards
In November 2023, the FASB issued new guidance which expands annual and interim disclosure requirements for
reportable segments, primarily through enhanced disclosures about significant segment expenses. We adopted this guidance
starting with our annual period beginning in fiscal year 2024 and will adopt for interim periods beginning in the first quarter of
2025. The guidance is applied retrospectively to all prior periods presented in the financial statements. Upon transition, the
segment expense categories and amounts disclosed in the prior periods are based on the significant segment expense categories
identified and disclosed in the period of adoption. Refer to Note 15. Segment Information for the enhanced disclosures.
3. Acquisitions
Nuvyyo Acquisition
On January 5, 2022, we acquired Nuvyyo for net cash consideration totaling $13.8 million. Nuvyyo provides consumers
DVR product solutions to watch and record free over-the-air HDTV on connected devices. The final purchase price allocation
assigned $7.2 million to intangible assets with useful lives ranging from three to five years, $7.2 million to goodwill and the
remainder was allocated to various working capital and deferred tax liability accounts. The goodwill, which is not tax
deductible, reflects the synergies and increased market penetration expected from combining the operations of Nuvyyo with
Scripps. We allocated the goodwill to our Other segment.
4. Restructuring Costs and Other Transactions
Restructuring and Reorganization
In January 2023, we announced a strategic restructuring and reorganization of the Company to further leverage our strong
position in the U.S. television ecosystem and propel our growth across new distribution platforms and emerging media
marketplaces. The strategic reorganization, which was substantially completed by the end of the 2024 second quarter, created a
leaner and more agile operating structure through the centralization of certain services and the consolidation of layers of
management across our operating businesses and corporate office.
F-31
On September 27, 2024, we announced plans to significantly reduce Scripps News' national network programming
beginning in the fourth quarter of 2024. As of November 15, 2024, Scripps News was no longer broadcast over the air, although
it remained on streaming and digital platforms with weekday live coverage from the field. These restructuring activities resulted
in the elimination of more than 200 jobs during 2024.
Restructuring costs totaled $33.5 million and $38.6 million in 2024 and 2023, respectively. Restructuring costs in 2024
attributed to the reduction of Scripps News' national news programming included $11.0 million in severance charges and
$3.2 million of programming losses. Restructuring costs incurred in 2024 also included $4.7 million of severance charges for
certain executives that accepted voluntary retirement offers in the fourth quarter and $9.7 million in other severance charges
associated with the strategic reorganization efforts. The 2023 costs included a $13.6 million first quarter charge related to the
write-down of certain programming assets in connection with the shutdown of the TrueReal network. Restructuring costs in
2023 also included employee severance related charges of $17.1 million, operating lease impairment charges of $1.3 million
and other restructuring charges primarily attributed to strategic reorganization consulting fees.
(in thousands)
Severance and
Employee Benefits
Other
Restructuring
Ch
Total
Liability as of December 31, 2022
$
— $
— $
—
Net accruals
17,066
21,546
38,612
Payments
(9,192)
(5,183)
(14,375)
Non-cash (a)
(1,139)
(14,933)
(16,072)
Liability as of December 31, 2023
6,735
1,430
8,165
Net accruals
25,371
8,154
33,525
Payments
(22,353)
(6,474)
(28,827)
Non-cash (a)
(100)
(3,110)
(3,210)
Liability as of December 31, 2024
$
9,653 $
— $
9,653
(a) Represents share-based compensation costs and asset write-downs included in restructuring charges.
Other Transactions
Acquisition and related integration costs were $1.6 million in 2022.
5. Income Taxes
We file a consolidated federal income tax return, consolidated unitary returns in certain states, other separate state income
tax returns for certain of our subsidiary companies, and applicable foreign returns.
The provision for income taxes from continuing operations consisted of the following:
For the years ended December 31,
(in thousands)
2024
2023
2022
Current:
Federal
$
64,533 $
34,205 $
56,236
State and local
11,644
8,010
11,411
Foreign
1,053
—
—
Total current income tax provision
77,230
42,215
67,647
Deferred:
Federal
(14,663)
(53,476)
2,882
State and local
1,222
(7,278)
10,770
Foreign
(26)
(1,188)
(738)
Total deferred income tax provision
(13,467)
(61,942)
12,914
Provision (benefit) for income taxes
$
63,763 $
(19,727) $
80,561
F-32
The difference between the statutory rate for federal income tax and the effective income tax rate was as follows:
For the years ended December 31,
2024
2023
2022
Statutory rate
21.0 %
21.0 %
21.0 %
Effect of:
State and local income taxes, net of federal tax benefit
4.2
0.1
7.0
Non-deductible goodwill impairment
—
(18.6)
—
Excess tax benefits from stock-based compensation
1.5
(0.2)
(0.3)
Non-deductible expenses
1.5
(0.1)
0.2
Reserve for uncertain tax positions
1.0
—
0.7
Other
1.2
(0.2)
0.5
Effective income tax rate
30.4 %
2.0 %
29.1 %
In 2023, a non-deductible expense of $855 million was recorded related to book impairment of goodwill.
The approximate effect of the temporary differences giving rise to deferred income tax assets (liabilities) were as follows:
As of December 31,
(in thousands)
2024
2023
Temporary differences:
Property and equipment
$
(38,383) $
(39,414)
Goodwill and other intangible assets
(377,291)
(368,876)
Investments, primarily gains and losses not yet recognized for tax purposes
4,980
2,954
Accrued expenses not deductible until paid
11,912
9,869
Deferred compensation and retiree benefits not deductible until paid
29,013
31,662
Operating lease right-of-use assets
(29,829)
(32,034)
Operating lease liabilities
32,888
34,884
Interest limitation carryforward
59,070
38,290
Other temporary differences, net
12,599
10,999
Total temporary differences
(295,041)
(311,666)
Federal and state net operating loss carryforwards
12,332
16,283
Valuation allowance for state deferred tax assets
(10,880)
(11,997)
Net deferred tax liability
$
(293,589) $
(307,380)
Total state operating loss carryforwards were $282 million at December 31, 2024. Our state tax loss carryforwards expire
through 2043. Because we file separate state income tax returns for certain of our subsidiary companies, we are not able to use
state tax losses of a subsidiary company to offset state taxable income of another subsidiary company.
The Company recognizes state net operating loss carryforwards as deferred tax assets, subject to valuation allowances. At
each balance sheet date, we estimate the amount of carryforwards that are not expected to be used prior to expiration of the
carryforward period. The tax effect of the carryforwards that are not expected to be used prior to their expiration is included in
the valuation allowance.
The Company has not provided for income taxes, including withholding tax, U.S. state taxes, or tax on foreign exchange
rate changes, associated with the undistributed earnings of our non-U.S. subsidiaries because we plan to indefinitely reinvest the
unremitted earnings in these entities.
F-33
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as
follows:
For the years ended December 31,
(in thousands)
2024
2023
2022
Gross unrecognized tax benefits at beginning of year
$
15,030 $
12,124 $
10,572
Increases in tax positions for prior years
6,055
3,321
2,965
Decreases in tax positions for prior years
(217)
(2)
(390)
Increases in tax positions for current year
7,483
257
796
Decreases from lapse in statute of limitations
(252)
(670)
(173)
Decreases due to settlements with taxing authorities
—
—
(1,646)
Gross unrecognized tax benefits at end of year
$
28,099 $
15,030 $
12,124
The total amount of net unrecognized tax benefits that, if recognized, would affect the effective tax rate was $14.2 million
at December 31, 2024. We accrue interest and penalties related to unrecognized tax benefits in our provision for income taxes.
At December 31, 2024 and 2023, we had accrued interest related to unrecognized tax benefits of $3.4 million and $1.6 million,
respectively, and penalties of $1.3 million and $1.1 million, respectively.
We file income tax returns in the U.S., Canada and in various state and local jurisdictions. We are routinely examined by
tax authorities in these jurisdictions. At December 31, 2024, we are no longer subject to federal income tax examinations for
years prior to 2018. For state and local jurisdictions, we are generally no longer subject to income tax examinations for years
prior to 2020.
Due to the potential for resolution of federal and state examinations, and the expiration of various statutes of limitation, it
is reasonably possible that our gross unrecognized tax benefits balance may change within the next twelve months by as much
as $2.7 million.
6. Investments
Investments consisted of the following:
As of December 31,
(in thousands)
2024
2023
Investments held at cost
$
6,353 $
21,169
Equity method investments
2,531
2,096
Total investments
$
8,884 $
23,265
On February 9, 2024, following the completed sale of Broadcast Music, Inc. ("BMI") to New Mountain Capital, we
received $18.1 million in pre-tax cash proceeds for our equity ownership in BMI. We did not have any carrying value
associated with our BMI investment.
In the fourth quarter of 2024, we recorded a $15.0 million non-cash impairment loss for the write-off of our Misfits
gaming investment balance. The measurement of the investment's fair value is a nonrecurring Level 3 measurement (significant
unobservable inputs) in the fair value hierarchy.
The gain and loss from these transactions are included within the Miscellaneous, net caption on our Consolidated
Statements of Operations.
Our investments do not trade in public markets, thus they do not have readily determinable fair values. Other than our
equity interest in BMI, as of December 31, 2023, we estimate the fair values of our other investments to approximate their
carrying values at December 31, 2024 and 2023.
F-34
7. Property and Equipment
Property and equipment consisted of the following:
As of December 31,
(in thousands)
2024
2023
Land and improvements
$
65,212 $
65,402
Buildings and improvements
275,844
252,396
Equipment
646,684
622,981
Computer software
33,389
30,395
Total
1,021,129
971,174
Accumulated depreciation
(567,229)
(515,919)
Net property and equipment
$
453,900 $
455,255
On December 30, 2024, we completed the sale of our San Diego tower sites for cash consideration of $20.0 million and
recognized a pre-tax gain from disposition of $19.2 million. We reached an agreement on the sale of our West Palm Beach
station's building on December 6, 2024, for cash consideration of $40.0 million. This transaction is subject to customary closing
conditions, including satisfactory completion of due diligence investigations, and is expected to close in the second quarter of
2025. We expect to enter into a leasing agreement related to this asset.
8. Leases
We have operating leases for office space, data centers and certain equipment. We also have finance leases for office
space. Our leases have lease terms of 1 year to 34 years, some of which may include options to extend the leases for up to 5
years, and some of which may include options to terminate the leases within 1 year. Operating lease costs recognized in our
Consolidated Statements of Operations totaled $22.8 million, $24.5 million and $25.9 million in 2024, 2023 and 2022,
respectively, including short-term lease costs of $6.4 million, $3.5 million and $1.7 million, respectively. Amortization of the
right-of-use asset for our finance leases totaled $0.8 million for the years ended December 31, 2024 and 2023 and $0.1 million
for the year ended December 31, 2022. Interest expense on the finance leases liability totaled $2.2 million, $2.1 million and
$0.2 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Other information related to our leases was as follows:
As of December 31,
(in thousands, except lease term and discount rate)
2024
2023
Balance Sheet Information
Operating Leases
Right-of-use assets
$
90,136
$
99,194
Other current liabilities
18,087
19,466
Operating lease liabilities
79,399
87,714
Finance Leases
Property and equipment, at cost
28,321
28,321
Accumulated depreciation
(1,658)
(862)
Property and equipment, net
26,663
27,459
Other liabilities
31,021
30,146
Weighted Average Remaining Lease Term
Operating leases
7.37 years
7.41 years
Finance leases
33.50 years
34.50 years
Weighted Average Discount Rate
Operating leases
5.01 %
4.43 %
Finance leases
7.10 %
7.10 %
F-35
For the years ended December 31,
(in thousands)
2024
2023
2022
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases
$
22,014 $
24,114 $
24,073
Operating cash flows from finance leases
1,302
426
—
Financing cash flows from finance leases
—
—
—
Right-of-use assets obtained in exchange for operating lease obligations
13,486
6,789
6,217
Right-of-use assets obtained in exchange for finance lease obligations
—
—
28,321
Future minimum lease payments under non-cancellable leases as of December 31, 2024 were as follows:
(in thousands)
Operating
Leases
Finance
Leases
2025
$
22,674 $
1,776
2026
21,140
1,824
2027
18,039
1,875
2028
14,736
1,926
2029
12,281
1,979
Thereafter
28,698
88,145
Total future minimum lease payments
117,568
97,525
Less: Imputed interest
(20,082)
(66,504)
Total
$
97,486 $
31,021
F-36
9. Goodwill and Other Intangible Assets
Goodwill by segment was as follows:
(in thousands)
Local Media
Scripps
Networks
Other
Total
Gross balance as of December 31, 2021
$
1,122,408 $
2,028,890 $
— $
3,151,298
Accumulated impairment losses
(216,914)
(21,000)
—
(237,914)
Net balance as of December 31, 2021
905,494
2,007,890
—
2,913,384
Nuvyyo acquisition
—
—
7,190
7,190
Balance as of December 31, 2022
$
905,494 $
2,007,890 $
7,190 $
2,920,574
Gross balance as of December 31, 2022
$
1,122,408 $
2,028,890 $
7,190 $
3,158,488
Accumulated impairment losses
(216,914)
(21,000)
—
(237,914)
Net balance as of December 31, 2022
905,494
2,007,890
7,190
2,920,574
Impairment charge
—
(952,000)
—
(952,000)
Balance as of December 31, 2023
$
905,494 $
1,055,890 $
7,190 $
1,968,574
Gross balance as of December 31, 2023
$
1,122,408 $
2,028,890 $
7,190 $
3,158,488
Accumulated impairment losses
(216,914)
(973,000)
—
(1,189,914)
Net balance as of December 31, 2023
$
905,494 $
1,055,890 $
7,190 $
1,968,574
Gross balance as of December 31, 2024
$
1,122,408 $
2,028,890 $
7,190 $
3,158,488
Accumulated impairment losses
(216,914)
(973,000)
—
(1,189,914)
Net balance as of December 31, 2024
$
905,494 $
1,055,890 $
7,190 $
1,968,574
Other intangible assets consisted of the following:
As of December 31,
(in thousands)
2024
2023
Amortizable intangible assets:
Carrying amount:
Television network affiliation relationships
$
1,060,244 $
1,060,244
Customer lists and advertiser relationships
220,997
220,997
Other
137,997
136,452
Total carrying amount
1,419,238
1,417,693
Accumulated amortization:
Television network affiliation relationships
(330,233)
(276,163)
Customer lists and advertiser relationships
(156,310)
(132,161)
Other
(76,622)
(61,606)
Total accumulated amortization
(563,165)
(469,930)
Net amortizable intangible assets
856,073
947,763
Indefinite-lived intangible assets — FCC licenses
779,415
779,415
Total other intangible assets
$
1,635,488 $
1,727,178
Estimated amortization expense of intangible assets for each of the next five years is $90.4 million in 2025, $86.3 million
in 2026, $83.2 million in 2027, $62.0 million in 2028, $62.0 million in 2029 and $472.2 million in later years.
Goodwill and other indefinite-lived intangible assets are tested for impairment annually and any time events occur or
changes in circumstances indicate it is more likely than not the fair value of a reporting unit, or respective indefinite-lived
F-37
intangible asset, is below its carrying value. Such events or changes in circumstances include, but are not limited to, changes in
business climate, significant declines in the price of our stock, or other factors resulting in lower cash flow related to such
assets.
The quantitative analysis to measure the extent of any goodwill impairment compares the estimated fair values of our
reporting units to their respective carrying values. We determine the fair value of each reporting unit with consideration to the
discounted cash flow method of the income approach, the general public company method of the market approach and the
guideline transactions method of the market approach. The weighting or prevalence of these methods in each annual
impairment test can be impacted by current market conditions or the relevance of current data. Particularly for the discounted
cash flow analysis, significant judgment is required to estimate the future cash flows derived from the business and the period
of time over which those cash flows will occur, as well as to determine an appropriate discount rate. The determination of the
discount rate is based on a cost of capital model, using a risk-free rate, adjusted by a stock-beta adjusted risk premium and a
size premium. These reporting unit valuations are dependent on a number of significant estimates and assumptions, including
macroeconomic conditions, market growth rates, competitive activities, cost containment, margin expansion and strategic
business plans (inputs of which are categorized as Level 3 under the fair value hierarchy). Additionally, future changes in these
assumptions and estimates with respect to long-term growth rates and discount rates or future cash flow projections, could
result in significantly different estimates of the fair values.
If the fair value of a reporting unit, or respective FCC license, is less than its carrying value, then an impairment exits and
an impairment charge is recorded. Upon completing our annual test in the fourth quarter of 2024, we determined that the fair
value of our reporting units and FCC licenses exceeded their respective carrying values. The fair value of our Local Media
reporting unit exceeded its carrying value by more than 20% and that the fair value of our Scripps Networks reporting unit
exceeded its carrying value by 1.3%. Given that the fair value of the Scripps Networks reporting unit currently approximates
carrying value, this reporting unit is more sensitive to changes in assumptions regarding its fair value. While we believe the
estimates and judgments used in determining the fair values were appropriate, these estimates of fair value assume certain levels
of growth for the business, which, if not achieved, could impact the fair value and possibly result in an impairment of the
goodwill in future periods.
During 2023, the Scripps Networks business continued to experience softness within the national advertising marketplace,
as macroeconomic challenges continued to impact advertising budgets. A longer than anticipated television advertising
recession and the impact of declining linear television viewership trends negatively impacted expected future growth rates,
profitability and the cash flows derived from the business as well as the expected period of time over which those cash flows
will occur. These factors, coupled with decreases in our market capitalization, provided an indication that the fair value of our
Scripps Networks reporting unit may be below its carrying value. We concluded that the fair value of our Scripps Networks
reporting unit did not exceed its carrying value and we recognized $952 million in non-cash goodwill impairment charges
during 2023.
10. Long-Term Debt
Long-term debt consisted of the following:
As of December 31,
(in thousands)
2024
2023
Revolving credit facility
$
— $
330,000
Senior secured notes, due in 2029
523,356
523,356
Senior unsecured notes, due in 2027
425,667
425,667
Senior unsecured notes, due in 2031
392,071
392,071
Term loan, due in 2026
721,213
728,825
Term loan, due in 2028
543,000
551,000
Total outstanding principal
2,605,307
2,950,919
Less: Debt issuance costs and issuance discounts
(29,135)
(38,483)
Less: Current portion
(15,612)
(15,612)
Net carrying value of long-term debt
2,560,560
2,896,824
Fair value of long-term debt *
$
2,112,999 $
2,732,318
* The fair values of debt are estimated based on either quoted private market transactions or observable estimates provided by
third party financial professionals, and as such, are classified within Level 2 of the fair value hierarchy.
F-38
Scripps Senior Secured Credit Agreement
On July 31, 2023, we entered into the Eighth Amendment to the Third Amended Restated Credit Agreement ("Eighth
Amendment"). Under the terms of the Eighth Amendment, we have a $585 million Revolving Credit Facility that matures on
January 7, 2026. Commitment fees of 0.30% to 0.50% per annum, based on our leverage ratio, of the total unused commitment
are payable under the Revolving Credit Facility. Interest is payable on the Revolving Credit Facility at rates based on the
secured overnight financing rate ("SOFR"), plus a margin based on our leverage ratio, ranging from 1.75% to 2.75%. As of
December 31, 2024, there were no borrowings under the Revolving Credit Facility. The weighted-average interest rate over the
periods during which we had a drawn revolver balance in 2024 and 2023 was 8.03% and 8.20%, respectively. As of
December 31, 2024 and 2023, we had outstanding letters of credit totaling $6.9 million and $6.7 million, respectively, under the
Revolving Credit Facility.
On October 2, 2017, we issued a $300 million term loan B which was due to mature in October 2024 ("2024 term loan").
On July 31, 2023, we borrowed $283 million on the Revolving Credit Facility to pay off the remaining principal balance of the
2024 term loan. The weighted-average interest rate was 7.22% for the period the loan was outstanding during 2023.
On May 1, 2019, we issued a $765 million term loan B ("2026 term loan") that matures in May 2026. Interest is currently
payable on the 2026 term loan at a rate based on SOFR, plus a fixed margin of 2.56%. The 2026 term loan requires annual
principal payments of $7.6 million. Deferred financing costs and an original issuance discount totaled approximately $23.0
million with this term loan, which are being amortized over the life of the loan.
As of December 31, 2024 and 2023, the interest rate on the 2026 term loan was 7.03% and 8.03%, respectively. The
weighted-average interest rate on the 2026 term loan was 7.84% and 8.01% in 2024 and 2023, respectively.
On January 7, 2021, we issued an $800 million term loan B ("2028 term loan") that matures in January 2028. Interest is
currently payable on the 2028 term loan at a rate based on SOFR, plus a fixed margin of 3.00%. Additionally, the credit
agreement states the SOFR rate could not be less than 0.75% for our term loans that mature in 2026 and 2028. The 2028 term
loan requires annual principal payments of $8.0 million. We incurred deferred financing costs totaling $23.4 million related to
this term loan and a previous amendment to the Revolving Credit Facility, which are being amortized over the life of the term
loan.
As of December 31, 2024 and 2023, the interest rate on the 2028 term loan was 7.47% and 8.47%, respectively. The
weighted-average interest rate on the 2028 term loan was 8.28% and 8.44% in 2024 and 2023, respectively.
The Senior Secured Credit Agreement contains covenants that limit our ability to incur additional debt and provides for
restrictions on certain payments (dividends and share repurchases). Additionally, we must be in compliance with certain
leverage ratios in order to proceed with acquisitions. Our credit agreement also includes a provision that in certain
circumstances we must use a portion of excess cash flow to repay debt. We granted the lenders pledges of our equity interests in
our subsidiaries and security interests in substantially all other personal property including cash, accounts receivables and
equipment. The Eighth Amendment contains a covenant to comply with a maximum first lien net leverage ratio. Through
December 31, 2024, we must comply with the maximum first lien net leverage ratio of 5.0 to 1.0, at which point it steps down
to 4.75 times through September 30, 2025, and then steps down to 4.50 times thereafter. As of December 31, 2024, we were in
compliance with our financial covenants.
2029 Senior Secured Notes
On December 30, 2020, we issued $550 million of senior secured notes (the "2029 Senior Notes"), which bear interest at a
rate of 3.875% per annum and mature on January 15, 2029. The 2029 Senior Notes were priced at 100% of par value and
interest is payable semi-annually on January 15 and July 15. Prior to January 15, 2026, we may redeem the notes, in whole or in
part, at applicable redemption prices noted in the indenture agreement. If we sell certain of our assets or have a change of
control, the holders of the 2029 Senior Notes may require us to repurchase some or all of the notes. Our credit agreement also
includes a provision that in certain circumstances we must use a portion of excess cash flow to repay debt. The 2029 Senior
Notes are guaranteed by us and the majority of our subsidiaries and are secured on equal footing with the obligations under the
Senior Secured Credit Agreement. The notes are secured, on a first lien basis, from pledges of equity interests in our
subsidiaries and by substantially all of the existing and future assets of Scripps. The 2029 Senior Notes contain covenants with
which we must comply that are typical for borrowing transactions of this nature.
F-39
We incurred approximately $13.8 million of deferred financing costs in connection with the issuance of the 2029 Senior
Notes, which are being amortized over the life of the notes.
2027 Senior Unsecured Notes
On July 26, 2019, we issued $500 million of senior unsecured notes, which bear interest at a rate of 5.875% per annum
and mature on July 15, 2027 ("the 2027 Senior Notes"). The 2027 Senior Notes were priced at 100% of par value and interest is
payable semi-annually on July 15 and January 15. We may redeem the notes before July 15, 2025, in whole or in part, at
applicable redemption prices noted in the indenture agreement. If we sell certain of our assets or have a change of control, the
holders of the 2027 Senior Notes may require us to repurchase some or all of the notes. The 2027 Senior Notes are fully and
unconditionally guaranteed on a senior unsecured basis by certain of our existing and future domestic restricted subsidiaries.
The 2027 Senior Notes contain covenants with which we must comply that are typical for borrowing transactions of this nature.
We incurred approximately $10.7 million of deferred financing costs in connection with the issuance of the 2027 Senior
Notes, which are being amortized over the life of the notes.
2031 Senior Unsecured Notes
On December 30, 2020, we issued $500 million of senior unsecured notes (the "2031 Senior Notes"), which bear interest
at a rate of 5.375% per annum and mature on January 15, 2031. The 2031 Senior Notes were priced at 100% of par value and
interest is payable semi-annually on January 15 and July 15. We may redeem some or all of the 2031 Senior Notes before
January 15, 2026 at a redemption price of 100% of the principal amount, plus accrued and unpaid interest, if any, to the
redemption date plus a "make whole" premium. On or after January 15, 2026 and before January 15, 2029, we may redeem the
notes, in whole or in part, at applicable redemption prices noted in the indenture agreement. If we sell certain of our assets or
have a change of control, the holders of the 2031 Senior Notes may require us to repurchase some or all of the notes. The 2031
Senior Notes are also guaranteed by us and the majority of our subsidiaries. The 2031 Senior Notes contain covenants with
which we must comply that are typical for borrowing transactions of this nature.
We incurred approximately $12.5 million of deferred financing costs in connection with the issuance of the 2031 Senior
Notes, which are being amortized over the life of the notes.
Debt Repurchase Authorization
In February 2023, our Board of Directors provided a new debt repurchase authorization, pursuant to which we may
reduce, through redemptions or open market purchases and retirement, a combination of the outstanding principal balance of
our senior secured and senior unsecured notes. The authorization permits an aggregate principal amount reduction of up to
$500 million and expires on March 1, 2026.
Debt Repurchase Transactions
On July 31, 2023, we paid off the remaining $283 million principal balance of the 2024 term loan and wrote-off
$0.4 million of deferred financing costs related to this term loan to interest expense.
During the first quarter of 2022, we redeemed $42.2 million of our 2027 Senior Notes at a weighted-average redemption
price equal to 100.61% of the aggregate principal amount plus accrued and unpaid interest, $26.6 million of our 2029 Senior
Notes at a weighted-average redemption price equal to 93.59% of the aggregate principal amount plus accrued and unpaid
interest and $54.5 million of our 2031 Senior Notes at a weighted-average redemption price equal to 95.73% of the aggregate
principal amount plus accrued and unpaid interest. The redemptions resulted in a gain on extinguishment of debt of
$1.2 million, as the notes were redeemed for total consideration below par value of the notes.
During the fourth quarter of 2022, we redeemed $16.8 million of our 2027 Senior Notes at a weighted-average redemption
price equal to 90.63% of the aggregate principal amount plus accrued and unpaid interest and $31.4 million of our 2031 Senior
Notes at a weighted-average redemption price equal to 78.71% of the aggregate principal amount plus accrued and unpaid
interest. The redemptions resulted in a gain on extinguishment of debt of $7.4 million, for a total gain on extinguishment of debt
of $8.6 million for the year ended December 31, 2022.
During 2022, we made additional principal payments on the 2028 term loan totaling $100 million and wrote-off
F-40
$1.1 million of deferred financing costs related to this term loan to interest expense.
Transaction Support Agreement
On March 10, 2025, we entered into a Transaction Support Agreement (“TSA”) that was reached with certain of the
Company’s lenders. Concurrently, we entered into commitment letters to provide for a new accounts receivable securitization
facility and a new revolving credit facility. Transactions contemplated by the TSA and commitment letters, which still need to
be consummated, include, among others, entering into new revolving credit and asset securitization facilities and the exchange
or repayment of certain of our existing term loans.
The proposed terms for the new revolving credit facility would provide a $208 million capacity expiring in July 2027
which will extend and substantially replace a portion of our current $585 million revolving credit facility that matures on
January 7, 2026, with the remaining committed amount of the existing revolver still available for draw. The proposed accounts
receivable securitization facilities would provide for draws up to a total of $450 million. Portions of the proceeds from the new
accounts receivable securitization facility are expected, together with cash on hand, to be used to partially repay the principal
balance of our $721 million term loan maturing in May 2026 that is not otherwise exchanged for new term loans.
In connection with the contemplated transactions, consenting lenders holding our term loan due in May 2026 will
exchange such holdings for new term loans due June 2028, with any amounts not exchanged, repaid in full. Additionally,
consenting lenders holding our term loan due in June 2028 will exchange such holdings for new term loans. We currently
anticipate completion of the transactions, as constructed, in April of 2025. Following completion of these transactions, our
earliest maturing outstanding debt will be the $426 million senior notes that are currently due July 15, 2027, subject to
springing maturities in certain of our other debt.
The TSA contains certain customary representations, warranties and other agreements by the parties thereto. The closing
of the term loan refinancings pursuant to the TSA is subject to, and conditioned upon, the satisfaction or waiver of certain
conditions set forth therein, including finalizing the definitive documentation.
11. Fair Value Measurement
We measure certain financial assets and liabilities at fair value on a recurring basis, such as cash equivalents. The fair
values of these financial assets were determined based on three levels of inputs, of which the first two are considered observable
and the last unobservable, that may be used to measure fair value. These levels of input are as follows:
•
Level 1 — Quoted prices in active markets for identical assets or liabilities.
•
Level 2 — Inputs, other than quoted market prices in active markets, that are observable either directly or
indirectly.
•
Level 3 — Unobservable inputs based on our own assumptions.
The following tables set forth our assets that are measured at fair value on a recurring basis at December 31, 2024 and
2023:
December 31, 2024
(in thousands)
Total
Level 1
Level 2
Level 3
Cash equivalents
$
14,447 $
14,447 $
— $
—
December 31, 2023
(in thousands)
Total
Level 1
Level 2
Level 3
Cash equivalents
$
26,213 $
26,213 $
— $
—
The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses approximate fair value due to
the short-term nature of those items.
F-41
12. Other Liabilities
Other liabilities consisted of the following:
As of December 31,
(in thousands)
2024
2023
Employee compensation and benefits
$
28,996 $
29,249
Deferred FCC repack income
37,733
41,863
Programming liability
248,634
274,564
Liability for pension benefits
71,211
73,651
Liabilities for uncertain tax positions
32,515
16,334
Finance leases
31,021
30,146
Other
14,464
18,374
Other liabilities (less current portion)
$
464,574 $
484,181
13. Supplemental Cash Flow Information
The following table presents additional information about the change in certain working capital accounts:
For the years ended December 31,
(in thousands)
2024
2023
2022
Accounts receivable
$
42,348 $
(10,443) $
(26,875)
Other current assets
(7,737)
(4,630)
5,653
Accounts payable
13,175
(3,536)
7,313
Unearned revenue
5,978
(6,002)
(3,115)
Accrued employee compensation and benefits
17,535
15,726
(24,080)
Accrued income taxes
(2,677)
2,976
4,281
Accrued interest
(623)
943
(3,886)
Other accrued liabilities
(6,902)
(13,509)
4,991
Other, net
(2,199)
2,200
(82)
Total
$
58,898 $
(16,275) $
(35,800)
14. Employee Benefit Plans
We sponsor a noncontributory defined benefit pension plan and non-qualified Supplemental Executive Retirement Plans
("SERPs"). Both the defined benefit plan and the SERPs have frozen the accrual of future benefits.
We sponsor a defined contribution plan covering substantially all non-union and certain union employees. We match a
portion of employees' voluntary contributions to this plan.
Other union-represented employees are covered by defined benefit pension plans jointly sponsored by us and the union, or
by union-sponsored multi-employer plans.
We use a December 31 measurement date for our retirement plans. Retirement plans expense is based on valuations as of
the beginning of each year.
F-42
The components of the expense consisted of the following:
For the years ended December 31,
(in thousands)
2024
2023
2022
Interest cost
$
22,444 $
23,579 $
17,332
Expected return on plan assets, net of expenses
(24,072)
(25,221)
(24,900)
Amortization of actuarial loss and prior service cost
18
18
4,034
Total for defined benefit plans
(1,610)
(1,624)
(3,534)
SERPs
936
974
921
Defined contribution plan
16,290
15,998
15,257
Net periodic benefit cost
$
15,616 $
15,348 $
12,644
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) were as follows:
For the years ended December 31,
(in thousands)
2024
2023
2022
Actuarial gain/(loss)
$
(5) $
3,091 $
(12,703)
Amortization of actuarial loss and prior service cost
18
18
4,034
Total
$
13 $
3,109 $
(8,669)
In addition to the amounts summarized above, amortization of actuarial losses related to our SERPs recognized through
other comprehensive income was $0.2 million in 2024, $0.1 million in 2023 and $0.3 million in 2022. We recognized actuarial
gains for our SERPs of $0.2 million in 2024 and $3.6 million in 2022 and an actuarial loss of $0.5 million in 2023.
Assumptions used in determining the annual retirement plans expense were as follows:
2024
2023
2022
Discount rate
5.18 %
5.47 %
2.95 %
Long-term rate of return on plan assets
5.50 %
5.50 %
5.50 %
The discount rate used to determine our future pension obligations is based on a dedicated bond portfolio approach that
includes securities rated Aa or better with maturities matching our expected benefit payments from the plans.
The expected long-term rate of return on plan assets is based upon the weighted-average expected rate of return and
capital market forecasts for each asset class employed.
Changes in other key actuarial assumptions affect the determination of the benefit obligations as of the measurement date
and the calculation of net periodic benefit costs in subsequent periods.
F-43
Obligations and Funded Status — The defined benefit pension plan obligations and funded status are actuarially valued as of
the end of each year. The following table presents information about our employee benefit plan assets and obligations:
Defined Benefit Plan
SERPs
For the years ended December 31,
(in thousands)
2024
2023
2024
2023
Change in projected benefit obligation:
Projected benefit obligation at beginning of year
$
448,993 $
450,022 $
13,437 $
13,393
Interest cost
22,444
23,579
662
708
Benefits paid
(37,828)
(33,750)
(1,131)
(1,161)
Actuarial (gains)/losses
(18,488)
9,142
(230)
497
Projected benefit obligation at end of year
415,121
448,993
12,738
13,437
Plan assets:
Fair value at beginning of year
387,429
383,725
—
—
Actual return on plan assets
5,579
37,454
—
—
Company contributions
—
—
1,131
1,161
Benefits paid
(37,828)
(33,750)
(1,131)
(1,161)
Fair value at end of year
355,180
387,429
—
—
Funded status
$
(59,941) $
(61,564) $
(12,738) $
(13,437)
Amounts recognized in Consolidated Balance Sheets:
Current liabilities
$
— $
— $
(1,468) $
(1,350)
Noncurrent liabilities
(59,941)
(61,564)
(11,270)
(12,087)
Total
$
(59,941) $
(61,564) $
(12,738) $
(13,437)
Amounts recognized in accumulated other
comprehensive loss consist of:
Net actuarial loss
$
95,798 $
95,793 $
3,468 $
3,838
Prior service cost
316
334
—
—
During 2024, a net actuarial gain decreased our benefit obligation primarily due to a year-over-year increase in the
discount rate assumption. During 2023, a net actuarial loss increased our benefit obligation primarily due to a year-over-year
decrease in the discount rate assumption. The recognized actuarial gains/losses are recorded in accumulated other
comprehensive income (loss) and are reflected in the table above.
Information for plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets was
as follows:
Defined Benefit Plan
SERPs
As of December 31,
(in thousands)
2024
2023
2024
2023
Accumulated benefit obligation
$
415,121 $
448,993 $
12,738 $
13,437
Projected benefit obligation
415,121
448,993
12,738
13,437
Fair value of plan assets
355,180
387,429
—
—
Assumptions used to determine the defined benefit pension plan benefit obligation were as follows:
2024
2023
2022
Weighted average discount rate
5.67 %
5.18 %
5.47 %
In 2025, we expect to contribute $1.5 million to fund our SERPs. We have met regulatory funding requirements for our
qualified defined benefit pension plan and do not have a mandatory contribution in 2025.
F-44
Estimated future benefit payments expected to be paid from the plans for the next ten years are $34.4 million in 2025,
$34.6 million in 2026, $34.8 million in 2027, $35.1 million in 2028, $35.1 million in 2029 and a total of $170.6 million for the
five years ending 2034.
Plan Assets and Investment Strategy
Our long-term investment strategy for pension assets is to earn a rate of return over time that minimizes future
contributions to the plan while reducing the volatility of pension assets relative to pension liabilities. The strategy reflects the
fact that we have frozen the accrual of service credits under our plans which cover the majority of employees. We evaluate our
asset allocation target ranges for equity, fixed income and other investments annually. We monitor actual asset allocations
quarterly and adjust as necessary. We control risk through diversification among multiple asset classes, managers and styles.
Risk is further monitored at the manager and asset class level by evaluating performance against appropriate benchmarks.
Information related to our pension plan asset allocations by asset category were as follows:
Target
allocation
Percentage of plan assets
as of December 31,
2025
2024
2023
US equity securities
13 %
13 %
13 %
Non-US equity securities
27 %
32 %
31 %
Fixed-income securities
55 %
54 %
55 %
Other
5 %
1 %
1 %
Total
100 %
100 %
100 %
U.S. equity securities include common stocks of large, medium and small capitalization companies, which are
predominantly U.S. based. Non-U.S. equity securities include companies domiciled outside of the U.S. and American
depository receipts. Fixed-income securities include securities issued or guaranteed by the U.S. government, mortgage backed
securities and corporate debt obligations. Other investments include real estate funds and cash equivalents.
Under our asset allocation strategy, approximately 55% of plan assets are invested in a portfolio of fixed income securities
with a duration approximately that of the projected payment of benefit obligations. The remaining 45% of plan assets are
invested in equity securities and other return-seeking assets. The expected long-term rate of return on plan assets is based
primarily upon the target asset allocation for plan assets and capital markets forecasts for each asset class employed.
The following table presents our plan assets as of December 31, 2024 and 2023:
As of December 31,
(in thousands)
2024
2023
Equity securities
Common/collective trust funds
$
159,893 $
172,635
Fixed income
Common/collective trust funds
192,571
212,012
Receivables for investment sold
2,716
2,782
Fair value of plan assets
$
355,180 $
387,429
Our investments are valued using net asset value as a practical expedient as allowed under U.S. GAAP and therefore are
not valued using the fair value hierarchy.
Equity securities-common/collective trust funds and fixed income-common/collective trust funds are comprised of shares
or units in commingled funds that are not publicly traded. The underlying assets in these funds (equity securities and fixed
income securities) are publicly traded on exchanges and price quotes for the assets held by these funds are readily available.
Common/collective trust funds are typically valued at their net asset values that are calculated by the investment manager or
sponsor of the fund and have daily or monthly liquidity.
F-45
15. Segment Information
We determine our operating segments based upon our management and internal reporting structure, as well as the basis
that our chief operating decision maker makes resource allocation decisions.
Our Local Media segment includes more than 60 local television stations and their related digital operations. It is
comprised of 18 ABC affiliates, 11 NBC affiliates, nine CBS affiliates and four FOX affiliates. We also have 11 independent
stations and 10 additional low power stations. Our Local Media segment earns revenue primarily from the sale of advertising to
local, national and political advertisers and retransmission fees received from cable operators, telecommunication companies,
satellite carriers and over-the-top virtual MVPDs.
Our Scripps Networks segment includes national news outlets Scripps News and Court TV as well as popular
entertainment brands ION, Bounce, Grit, ION Mystery, ION Plus and Laff. The Scripps Networks reach nearly every U.S.
television home through free over-the-air broadcast, cable/satellite, connected TV and/or digital distribution. These operations
earn revenue primarily through the sale of advertising.
Our segment results reflect the impact of intercompany carriage agreements between our local broadcast television
stations and our national networks. The intercompany carriage fee revenue earned by our local broadcast television stations is
equal to the carriage fee expense incurred by our national networks. We also allocate a portion of certain corporate costs and
expenses, including accounting, human resources, employee benefit and information technology to our segments. These
intercompany agreements and allocations are generally amounts agreed upon by management, which may differ from an arms-
length amount.
The other segment caption aggregates our operating segments that are too small to report separately. Costs for centrally
provided services and certain corporate costs that are not allocated to the segments are included in shared services and corporate
costs. These unallocated corporate costs would also include the costs associated with being a public company. Corporate assets
are primarily cash and cash equivalents, property and equipment primarily used for corporate purposes and deferred income
taxes.
Our President and Chief Executive Officer is the Company's chief operating decision maker. He evaluates the monthly
operating performance of our segments, including budget-to-actual variances, and makes decisions about the allocation of
resources to our segments using a measure called segment profit. Segment profit excludes interest, defined benefit pension plan
amounts, income taxes, depreciation and amortization, impairment charges, divested operating units, restructuring activities,
investment results and certain other items that are included in net income (loss) determined in accordance with accounting
principles generally accepted in the United States of America.
F-46
Information regarding our segments is as follows:
For the year ended December 31, 2024
(in thousands)
Local Media
Scripps
Networks
Total
Revenues from external customers
$
1,655,257 $
835,809 $
2,491,066
Intersegment revenues
19,061
—
19,061
Reportable segments revenues
1,674,318
835,809
2,510,127
Other revenues(a)
18,706
Intersegment eliminations
(19,061)
Total consolidated operating revenues
$
2,509,772
Less:(b)
Employee compensation and benefits
437,345
120,862
Programming(c)
521,615
354,281
Other segment items(d)
202,140
170,491
Segment profit for reportable segments
513,218
190,175 $
703,393
Other segment profit (loss)(a)
(31,632)
Shared services and corporate
(88,941)
Restructuring costs
(33,525)
Depreciation and amortization of intangible assets
(155,228)
Gains (losses), net on disposal of property and equipment
18,424
Interest expense
(210,344)
Defined benefit pension plan income
674
Miscellaneous, net
7,160
Income (loss) from operations before income taxes
$
209,981
(a) Reflects revenues and profit (loss) from operating segments below the reportable quantitative thresholds. These operating segments include our Tablo
business, the Scripps National Spelling Bee and operational aspects of the Scripps News and Scripps Sports business units. None of these operating segments
have ever met any of the quantitative thresholds for determining reportable segments.
(b) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(c) Refer to Note 1. Summary of Significant Accounting Policies for disclosure of costs captured in programming.
(d) Other segment items for each reportable segment includes marketing and advertising expenses, research costs, certain occupancy costs and other
administrative costs.
F-47
For the year ended December 31, 2023
(in thousands)
Local Media
Scripps
Networks
Total
Revenues from external customers
$
1,380,281 $
893,234 $
2,273,515
Intersegment revenues
17,949
—
17,949
Reportable segments revenues
1,398,230
893,234
2,291,464
Other revenues(a)
19,397
Intersegment eliminations
(17,949)
Total consolidated operating revenues
$
2,292,912
Less:(b)
Employee compensation and benefits
435,916
124,669
Programming(c)
493,578
360,684
Other segment items(d)
181,297
182,096
Segment profit for reportable segments
287,439
225,785 $
513,224
Other segment profit (loss)(a)
(26,451)
Shared services and corporate
(91,954)
Restructuring costs
(38,612)
Depreciation and amortization of intangible assets
(155,105)
Impairment of goodwill
(952,000)
Gains (losses), net on disposal of property and equipment
(2,344)
Interest expense
(213,512)
Defined benefit pension plan income
650
Miscellaneous, net
(1,407)
Income (loss) from operations before income taxes
$
(967,511)
For the year ended December 31, 2022
(in thousands)
Local Media
Scripps
Networks
Total
Revenues from external customers
$
1,477,345 $
961,242 $
2,438,587
Intersegment revenues
17,012
—
17,012
Reportable segments revenues
1,494,357
961,242
2,455,599
Other revenues(a)
14,628
Intersegment eliminations
(17,012)
Total consolidated operating revenues
$
2,453,215
Less:(b)
Employee compensation and benefits
425,840
120,202
Programming(c)
481,712
342,835
Other segment items(d)
200,436
187,869
Segment profit for reportable segments
386,369
310,336 $
696,705
Other segment profit (loss)(a)
(18,140)
Shared services and corporate
(82,280)
Acquisition and related integration costs
(1,642)
Depreciation and amortization of intangible assets
(160,433)
Gains (losses), net on disposal of property and equipment
(5,866)
Interest expense
(161,130)
Gain on extinguishment of debt
8,589
Defined benefit pension plan income
2,613
Miscellaneous, net
(1,953)
Income (loss) from operations before income taxes
$
276,463
(a) Reflects revenues and profit (loss) from operating segments below the reportable quantitative thresholds. These operating segments include our Tablo
business, the Scripps National Spelling Bee and operational aspects of the Scripps News and Scripps Sports business units. None of these operating segments
have ever met any of the quantitative thresholds for determining reportable segments.
(b) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(c) Refer to Note 1. Summary of Significant Accounting Policies for disclosure of costs captured in programming.
(d) Other segment items for each reportable segment includes marketing and advertising expenses, research costs, certain occupancy costs and other
administrative costs.
F-48
Other segment disclosures are as follows:
For the years ended December 31,
(in thousands)
2024
2023
2022
Depreciation:
Local Media
$
41,651 $
39,642 $
40,479
Scripps Networks
19,199
19,600
19,360
Total depreciation for reportable segments
60,850
59,242
59,839
Other
243
184
189
Shared services and corporate
899
1,299
1,915
Total depreciation
$
61,992 $
60,725 $
61,943
Amortization of intangible assets:
Local Media
34,762
36,322
35,461
Scripps Networks
51,904
52,036
56,836
Total amortization of intangible assets for reportable segments
86,666
88,358
92,297
Other
1,777
1,795
1,870
Shared services and corporate
4,793
4,227
4,323
Total amortization of intangible assets
$
93,236 $
94,380 $
98,490
Additions to property and equipment:
Local Media
45,778
55,244
58,350
Scripps Networks
12,095
5,654
13,444
Total additions to property and equipment for reportable segments
57,873
60,898
71,794
Other
959
75
54
Shared services and corporate
6,645
1,530
374
Total additions to property and equipment
$
65,477 $
62,503 $
72,222
A disaggregation of the principal activities from which we generate revenue is as follows:
For the years ended December 31,
(in thousands)
2024
2023
2022
Operating revenues:
Core advertising
$
1,330,191 $
1,444,539 $
1,549,277
Political
362,523
33,460
208,112
Distribution
784,573
779,217
660,317
Other
32,485
35,696
35,509
Total operating revenues
$
2,509,772 $
2,292,912 $
2,453,215
F-49
Total assets by segment for the years ended December 31 were as follows:
As of December 31,
(in thousands)
2024
2023
Assets:
Local Media
$
2,323,964 $
2,393,660
Scripps Networks
2,753,971
2,878,936
Total assets by reportable segments
5,077,935
5,272,596
Other(a)
34,800
58,460
Shared services and corporate
85,840
79,064
Total assets
$
5,198,575 $
5,410,120
(a) Reflects assets of operating segments below the reportable quantitative thresholds. These operating segments include our Tablo business, the Scripps
National Spelling Bee and operational aspects of the Scripps News and Scripps Sports business units.
16. Commitments and Contingencies
In the ordinary course of business, we enter into contractual commitments for network affiliation agreements, the
acquisition of programming and for other purchase and service agreements. Minimum payments on such contractual
commitments at December 31, 2024 were: $936.0 million in 2025, $541.8 million in 2026, $256.2 million in 2027, $120.5
million in 2028, $42.3 million in 2029 and $17.4 million in later years. We expect these contracts will be replaced with similar
contracts upon their expiration.
We are involved in litigation arising in the ordinary course of business, such as defamation actions and governmental
proceedings primarily relating to renewal of broadcast licenses, none of which is expected to result in material loss.
17. Capital Stock and Share-Based Compensation Plans
Capital Stock — We have two classes of common shares, Common Voting shares and Class A Common shares. The Class A
Common shares are only entitled to vote on the election of the greater of three or one-third of the directors and other matters as
required by Ohio law.
On January 7, 2021, we issued 6,000 shares of Series A preferred stock, having a face value of $100,000 per share. The
preferred shares are perpetual and will be redeemable at the option of the Company beginning on the fifth anniversary of
issuance, and redeemable at the option of the holders in the event of a Change of Control (as defined in the terms of the
preferred shares), in each case at a redemption price of 105% of the face value, plus accrued and unpaid dividends (whether or
not declared). As long as the Company pays quarterly dividends in cash on the preferred shares, the dividend rate will be 8%
per annum. Preferred stock dividends declared and paid were $48.0 million in 2023. As of June 30, 2023, we had transitioned
into an accumulated deficit position. As a result, dividends declared after June 30, 2023 have been recognized as a reduction to
additional paid-in-capital.
If dividends on the preferred shares, which compound quarterly, are not paid in full in cash, the rate will increase to 9%
per annum for the remaining period of time that the preferred shares are outstanding. We did not declare or provide payment for
any of the 2024 quarterly dividends. As of December 31, 2024, aggregated undeclared and unpaid cumulative dividends totaled
$55.8 million and the redemption value of the preferred stock totaled $688 million.
Class A Common Shares Stock Warrant — In connection with the issuance of the preferred shares, Berkshire Hathaway, Inc.
("Berkshire Hathaway") also received a warrant to purchase up to 23.1 million Class A shares, at an exercise price of $13 per
share. The warrant is exercisable at the holder’s option at any time or from time to time, in whole or in part, until the first
anniversary of the date on which no preferred shares remain outstanding.
Share Repurchase Plan — Shares may be repurchased from time to time at management's discretion. Shares can be
repurchased under the authorization via open market purchases or privately negotiated transactions, including accelerated stock
repurchase transactions, block trades, or pursuant to trades intending to comply with Rule 10b5-1 of the Securities Exchange
Act of 1934. Under the terms of the preferred shares, we are prohibited from paying dividends on and repurchasing our
common shares until all preferred shares are redeemed. No shares were repurchased during 2024, 2023 or 2022.
F-50
Incentive Plans — The Company has a long-term incentive plan (the “Plan”) that permits the granting of incentive and
nonqualified stock options, stock appreciation rights, restricted stock units ("RSUs"), restricted and unrestricted Class A
Common shares and performance units to key employees and non-employee directors.
We satisfy stock option exercises and vested stock awards with newly issued shares. We have not issued any new stock
options since 2008. As of December 31, 2024, approximately 13.6 million shares were available for future stock compensation
awards.
Restricted Stock Units — Awards of RSUs generally require no payment by the employee. RSUs are converted into an equal
number of Class A Common shares when vested. These awards generally vest over a three or four year period, conditioned
upon the individual’s continued employment through that period. Awards vest immediately upon the retirement, death or
disability of the employee or upon a change in control of Scripps or in the business in which the individual is employed.
Unvested awards may be forfeited if employment is terminated for other reasons. Awards are nontransferable during the vesting
period, but the awards are entitled to all the rights of an outstanding share, including receiving stock dividend equivalents.
There are no post-vesting restrictions on awards granted to employees and non-employee directors.
Long-term incentive compensation includes performance share awards. Performance share awards represent the right to
receive an award of RSUs if certain performance measures are met. Each award specifies a target number of shares to be issued
and the specific performance criteria that must be met. The number of shares that an employee receives may be less or more
than the target number of shares depending on the extent to which the specified performance measures are met or exceeded.
The following table summarizes our RSU activity:
Fair Value
Number
of Shares
Weighted
Average
Range of
Prices
Unvested at December 31, 2021
2,385,496 $
17.25
$ 9-23
Awarded
1,867,083
19.19
14-22
Vested
(1,147,220)
21.20
11-22
Forfeited
(57,074)
20.07
9-23
Unvested at December 31, 2022
3,048,285
18.57
9-23
Awarded
1,938,617
8.46
7-8
Vested
(1,224,417)
11.61
5-15
Forfeited
(46,570)
15.26
8-23
Unvested at December 31, 2023
3,715,915
13.11
7-23
Awarded
2,204,557
3.90
4-8
Vested
(1,541,364)
3.87
2-9
Forfeited
(77,195)
8.51
4-23
Unvested at December 31, 2024
4,301,913
8.22
4-23
The following table summarizes additional information about RSU vesting:
For the years ended December 31,
(in thousands)
2024
2023
2022
Fair value of RSUs vested
$
5,929 $
14,171 $
24,321
Tax benefits realized on vesting
1,440
3,409
5,902
F-51
Share-based Compensation Costs
Share-based compensation costs were as follows:
For the years ended December 31,
(in thousands)
2024
2023
2022
Total share-based compensation
$
15,177 $
20,490 $
21,596
Share-based compensation, net of tax
11,492
15,560
16,355
As of December 31, 2024, $12.8 million of total unrecognized compensation costs related to RSUs and performance
shares is expected to be recognized over a weighted-average period of 1.4 years.
18. Accumulated Other Comprehensive Income (Loss)
Changes in the accumulated other comprehensive income (loss) ("AOCI") balance by component consisted of the
following for the respective years:
(in thousands)
Defined
Benefit
Pension Items
Other
Total
As of December 31, 2022
$
(77,327) $
(144) $
(77,471)
Other comprehensive income (loss) before reclassifications, net of tax of
$624 and $(38)
1,972
(119)
1,853
Amounts reclassified from AOCI, net of tax of $34
108
—
108
Net current-period other comprehensive income (loss)
2,080
(119)
1,961
As of December 31, 2023
(75,247)
(263)
(75,510)
Other comprehensive income (loss) before reclassifications, net of tax of
$55 and $(28)
170
(86)
84
Amounts reclassified from AOCI, net of tax of $38
120
—
120
Net current-period other comprehensive income (loss)
290
(86)
204
As of December 31, 2024
$
(74,957) $
(349) $
(75,306)
Amounts reclassified to net earnings for defined benefit pension items relate to the amortization of actuarial gains (losses)
and settlement charges. These amounts are included within the defined benefit pension plan expense caption on our
Consolidated Statements of Operations. See Note 14. Employee Benefit Plans for additional information.
F-52
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Vision Statement:
We Create Connection
Transfer Agent
(Shareholder correspondence should be mailed to)
Computershare
P.O. Box 43006
Providence, RI 02940-3006
(Registered or overnight correspondence should be mailed to)
Computershare
250 Royall Street
Canton, MA 02021
Telephone: 866.293.4224
TDD for hearing impaired: 800.231.5469
International shareholders: 201.680.6578
TDD international shareholders: 201.680.6610
Shareholder Website
www.computershare.com/investor
Shareholder online inquiries
https://www-us.computershare.com/investor/contact
Annual Meeting
The annual meeting of shareholders will be held at Scripps
Center, 312 Walnut Street, 10th Floor Conference Room,
Cincinnati, OH 45202 Monday, May 5, 2025, at 4 p.m. Eastern.
Committee charters, corporate governance guidelines and
the company’s code of conduct are on the company website
and are available upon request in printed format.
For more information, send e-mail to secretary@scripps.com.
Form 10-K
The E.W. Scripps Company’s annual report on Form 10-K,
filed with the Securities and Exchange Commission, is
available at no charge upon written request to the company’s
office of investor relations.
For Additional Information
Investor Relations
The E.W. Scripps Company
312 Walnut Street, 28th Floor
P.O. Box 5380
Cincinnati, Ohio 45201
T 513.977.3000
F 513.977.3024
For company information online, visit http://www.scripps.com
or send e-mail to ir@scripps.com.
Stock and Trading
The company’s class A common shares are traded on
Nasdaq under the symbol “SSP.” There are approximately
13,300 owners of the company’s class A common shares
and approximately 70 owners of the company’s voting shares,
which do not have a public market.
Adam Symson (50) President and chief executive officer.
Jason Combs (48) Chief financial officer since January 2021.
Vice president of financial planning and analysis, 2015-2021.
Lisa A. Knutson (59) Chief operating officer. Also has
served as president of Scripps Networks division; chief
financial officer; chief strategy officer; and vice president
of human resources.
David M. Giles (64) Chief legal officer (since August 2024).
Senior vice president, deputy general counsel and chief
ethics officer, 2017-2024.
Laura Tomlin (49) Chief transformation officer. Chief
administrative officer, 2022-2024. Executive vice president/
Senior vice president of National Media division, 2017-2021.
Mark L. Koors (61) Senior vice president, audit and
compliance.
Brian G. Lawlor (58) President of Scripps Sports. President/
Senior vice president of Local Media division 2009-2022.
Carolyn Pione Micheli (55) Executive vice president/chief
communications and investor relations officer.
Brian Norris (48) Executive vice president and chief revenue
officer.
Kate O’Brian (66) President, News.
Robert Oestreicher (42) Senior vice president, corporate
counsel and Corporate Secretary.
Daniel Perschke (45) Senior vice president and controller.
Rebecca Riegelsberger (45) Treasurer and senior vice
president of tax.
Keisha Taylor Starr (46) Executive vice president and chief
marketing officer.
S H A R E H O L D E R I N F O R M A T I O N
2024 Corporate Officers
Board of Directors
Marcellus W. Alexander Jr. (73) Senior
Advisor, Television and President, National
Association of Broadcasters Leadership
Foundation from 2018 to June 30, 2019.
Executive Vice President, Television and
President, National Association of Broadcasters Education
Foundation from 2004 to 2018. Executive Vice President,
Television of National Association of Broadcasters from 2002
to 2004. Director since August 2019.
Charles Barmonde (49) Private investor,
educator and entrepreneur. Owner and founder
of Arch Contemporary Ceramics. Director
since 2015.
Kelly Conlin (65) Former chairman and CEO of
Zinio, Inc. Chairman and CEO of NameMedia
from 2006 to 2015. CEO of Primedia from 2003
to 2005. CEO of IDG Inc. from 1995 to 2002.
Director since 2013.
Raymundo H. Granado (45) Private investor
and philanthropist. Board member of RightGift
since 2020 (after two years as a board adviser).
Trustee of the Scripps Howard Foundation/
Fund since 2019. Director of the Scripps Family
Impact Fund and board secretary from 2018-2023. Charter
member of the charitable advisory board to the Adam R.
Scripps Foundation. Director since 2023.
Monica O. Holcomb (50) Private investor and
philanthropist. Founding director of the Scripps
Family Impact Fund since 2018. Charter
member of the charitable advisory board to
the Adam R. Scripps Foundation. Director of
Miramar Services, Inc., since 2019, and chair of its Vision
Statement Committee. Director since 2023.
Burton Jablin (65) Retired chief operating
officer, Scripps Networks Interactive, 2008 to
2018. Long history of leadership roles with
The E.W. Scripps Company, including as a
programming executive who helped launch
HGTV in the early 1990s. Early career in local broadcast
journalism. Director since 2022.
Nishat Mehta (49) Chief executive officer and
president at Lexitas, a leading national provider
of technology-enabled litigation services based
in Austin, Texas. Formerly president of global
products and solutions for Circana, a Chicago-
based company formed from the merger of IRI and The NPD
Group. Board member since 2024. Formerly head of
customer communications at 84.51º, a retail data science,
insights and media company, and its predecessor,
dunnhumby. Started his career with 15 years at business
intelligence software firm MicroStrategy. Director since 2024.
Leigh Radford (60) Retired senior vice
president, Procter & Gamble; founder,
P&G Ventures. Founder of P&G Ventures,
an early-stage start-up studio within the
company. Built multiple billion-dollar businesses
across a range of countries and categories. She also serves
on the board of the $7 billion nonprofit Goodwill Industries
International. Director since 2022.
Adam Symson (50) President and CEO of The
E.W. Scripps Company since August 2017.
Chief operating officer from November 2016
until August 2017. Chief digital officer from
September 2011 until October 2016. Adam
came to corporate in 2003 to be the director of investigative
reports and special projects in the TV division. He advanced
to become director of news strategy and operations, director
of content and marketing in the Scripps Interactive Media
division and vice president of interactive for the Scripps TV
division. He joined Scripps in 2002 as an investigative
producer at KNXV. Director since 2017.
Kim Williams (69) Retired since 2006. Senior
vice president, partner and associate director
of global industry research at Wellington
Management Company, LLP from 1995 until
2001. Senior vice president, partner and global
industry analyst from 1986 until 1995. Director since 2008.
Lead director from 2018 to 2021. Chairperson of the Board
since May 2021.
As of April 30, 2025.
B O A R D O F D I R E C T O R S / C O R P O R A T E O F F I C E R S
John W. Hayden (67) President and CEO
of CJH Consulting. President and CEO of
The Midland Company from 1998 to 2010.
Chairman, President and CEO of American
Modern Insurance Group from 1996 to 2010.
Former Director of Ohio National Financial Services,
Hauser Private Equity, General Nano and ABR Re. Director
since 2008.
P.O. BOX 5380
CINCINNATI, OHIO 45201
WWW.SCRIPPS.COM