UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2009

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

THE E. W. SCRIPPS COMPANY

(Exact name of registrant as specified in its charter)

Ohio		31-1223339
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		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

Not Applicable
(Former name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities and 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 þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer”, or “small reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ		Accelerated filer o		Non-accelerated filer o		Smaller reporting company o
				(Do not check if smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of October 30, 2009, there were 42,690,956 of the Registrant’s Class A Common shares outstanding and 11,932,735 of the Registrant’s Common Voting shares outstanding.

 

 

INDEX TO THE E. W. SCRIPPS COMPANY
REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2009

Item No.				Page
		PART I — FINANCIAL INFORMATION
1		Financial Statements			3
2		Management's Discussion and Analysis of Financial Condition and Results of Operations			3
3		Quantitative and Qualitative Disclosures About Market Risk			3
4		Controls and Procedures			3
		PART II — OTHER INFORMATION
1		Legal Proceedings			3
1	A	Risk Factors			3
2		Unregistered Sales of Equity and Use of Proceeds			3
3		Defaults Upon Senior Securities			3
4		Submission of Matters to a Vote of Security Holders			4
5		Other Information			4
6		Exhibits			4
		Signatures			5
Exhibit 31(a)
Exhibit 31(b)
Exhibit 32(a)
Exhibit 32(b)

PART I

As used in this Quarterly Report on Form 10-Q, the terms “we,” “our,” “us” or “Scripps” 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.

ITEM 1. FINANCIAL STATEMENTS

The information required by this item is filed as part of this Form 10-Q. See Index to Financial Information at page F-1 of this Form 10-Q.

ITEM 2.		MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The information required by this item is filed as part of this Form 10-Q. See Index to Financial Information at page F-1 of this Form 10-Q.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information required by this item is filed as part of this Form 10-Q. See Index to Financial Information at page F-1 of this Form 10-Q.

ITEM 4. CONTROLS AND PROCEDURES

The information required by this item is filed as part of this Form 10-Q. See Index to Financial Information at page F-1 of this Form 10-Q.

PART II

ITEM 1. LEGAL PROCEEDINGS

We are involved in litigation arising in the ordinary course of business, such as defamation actions, employment related actions and various governmental and administrative proceeding. We do not expect any of these matters to result in material loss.

ITEM 1A. RISK FACTORS

There have been no material changes to the factors disclosed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2008, except that the risk factor “Macro economic factors may impede access to or increase the cost of financing our operations and investments. Our ability to meet the covenants in our debt agreement may affect our ability to borrow under our Revolving Credit Agreement.” has changed. The last two paragraphs are no longer applicable due to the amendment of our credit agreement as described in footnote 8 to our Condensed Consolidated Financial Statements.

ITEM 2. UNREGISTERED SALES OF EQUITY AND USE OF PROCEEDS

There were no sales of unregistered equity securities in this reporting period.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

There were no defaults upon senior securities in this reporting period.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There were no matters submitted to a vote of security holders during the quarter for which this report is filed.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

The information required by this item is filed as part of this Form 10-Q. See Index to Exhibits at page E-1 of this Form 10-Q.

SIGNATURES

Pursuant to the requirements 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

Index to Financial Information

Item		Page
Condensed Consolidated Balance Sheets			F-2
Condensed Consolidated Statements of Operations			F-4
Condensed Consolidated Statements of Cash Flows			F-5
Condensed Consolidated Statements of Equity			F-6
Condensed Notes to Consolidated Financial Statements			F-7
Management’s Discussion and Analysis of Financial Condition and Results of Operations			F-22
Quantitative and Qualitative Disclosures About Market Risk			F-31
Controls and Procedures			F-32

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

		As of				As of
		September 30,				December 31,
(in thousands)		2009				2008
ASSETS
Current assets:
Cash and cash equivalents		$	10,408			$	5,376
Short-term investments			21,254				21,130
Accounts and notes receivable (less allowances — $4,934 and $7,763)			105,531				169,010
Inventory			7,064				11,952
Deferred income taxes			38,222				33,911
Income taxes receivable			37,341				12,363
Miscellaneous			26,472				31,794
Total current assets			246,292				285,536
Investments			10,812				12,720
Property, plant and equipment			432,107				426,671
Goodwill and other intangible assets:
Goodwill			—				215,432
Other intangible assets			23,980				26,464
Total goodwill and other intangible assets			23,980				241,896
Other assets:
Deferred income taxes			63,075				80,600
Miscellaneous			14,367				9,281
Total other assets			77,442				89,881
Assets of discontinued operations — noncurrent			—				32,272
TOTAL ASSETS		$	790,633			$	1,088,976

See notes to condensed consolidated financial statements.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

		As of				As of
		September 30,				December 31,
(in thousands, except share data)		2009				2008
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	25,814			$	55,889
Customer deposits and unearned revenue			32,014				38,817
Accrued liabilities:
Employee compensation and benefits			33,067				36,273
Accrued talent payable			11,983				15,981
Miscellaneous			22,751				23,651
Liabilities of discontinued operations — current			—				2,225
Other current liabilities			9,404				14,748
Total current liabilities			135,033				187,584
Long-term debt			29,455				61,166
Other liabilities (less current portion)			190,855				245,259
Equity:
The E.W. Scripps Company equity:
Preferred stock, $.01 par — authorized: 25,000,000 shares; none outstanding
Common stock, $.01 par:
Class A — authorized: 240,000,000 shares; issued and outstanding: 42,602,329 and 41,884,187 shares			426				419
Voting — authorized: 60,000,000 shares; issued and outstanding: 11,932,735 and 11,933,401 shares			119				119
Total			545				538
Additional paid-in capital			533,377				523,859
Retained earnings (accumulated deficit)			(13,132	)			200,827
Accumulated other comprehensive income (loss), net of income taxes:
Pension liability adjustments			(89,419	)			(134,293	)
Foreign currency translation adjustment			668				638
Total equity for The E.W. Scripps Company			432,039				591,569
Noncontrolling interest			3,251				3,398
Total equity			435,290				594,967
TOTAL LIABILITIES AND EQUITY		$	790,633			$	1,088,976

See notes to condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ( UNAUDITED )

		Three months ended								Nine months ended
		September 30,								September 30,
(in thousands, except per share data)		2009				2008				2009				2008
Operating Revenues:
Advertising		$	130,410			$	176,346			$	411,228			$	561,745
Circulation			27,309				26,577				86,511				85,080
Licensing			17,331				16,569				48,988				52,469
Other			11,351				10,753				38,200				37,474
Total operating revenues			186,401				230,245				584,927				736,768
Costs and Expenses:
Employee compensation and benefits			89,299				101,131				283,542				337,122
Production and distribution			39,815				52,087				131,273				163,774
Programs and program licenses			13,228				11,957				39,104				34,931
Other costs and expenses			35,016				38,796				110,115				123,002
Separation and restructuring costs			1,221				22,020				4,155				31,629
Total costs and expenses			178,579				225,991				568,189				690,458
Depreciation, Amortization, and (Gains) Losses:
Depreciation			10,525				11,137				31,930				32,106
Amortization of intangible assets			382				810				1,485				2,411
Impairment of goodwill and indefinite-lived assets			—				—				216,413				778,900
(Gains) losses on disposal of property, plant and equipment			(130	)			17				227				(2,244	)
Net depreciation, amortization and (gains) losses			10,777				11,964				250,055				811,173
Operating loss			(2,955	)			(7,710	)			(233,317	)			(764,863	)
Interest expense			(1,149	)			—				(1,558	)			(10,547	)
Equity in earnings of JOAs and other joint ventures			586				649				798				3,399
Write-down of investment in newspaper partnership			—				—				—				(10,000	)
Losses on repurchases of debt			—				—				—				(26,380	)
Miscellaneous, net			270				(508	)			(988	)			7,136
Loss from continuing operations before income taxes			(3,248	)			(7,569	)			(235,065	)			(801,255	)
Provision (benefit) for income taxes			293				(4,514	)			(28,886	)			(253,457	)
Loss from continuing operations, net of tax			(3,541	)			(3,055	)			(206,179	)			(547,798	)
Income (loss) from discontinued operations, net of tax			280				(13,677	)			(15,676	)			130,627
Net loss			(3,261	)			(16,732	)			(221,855	)			(417,171	)
Net income (loss) attributable to noncontrolling interests			—				67				(147	)			46,801
Net loss attributable to the shareholders of The E.W. Scripps Company		$	(3,261	)		$	(16,799	)		$	(221,708	)		$	(463,972	)
Net income (loss) per basic share of common stock attributable to the shareholders of The E.W. Scripps Company:
Loss from continuing operations		$	(.07	)		$	(.06	)		$	(3.83	)		$	(10.10	)
Income (loss) from discontinued operations			.01				(.25	)			(.29	)			1.55
Net loss per basic share of common stock		$	(.06	)		$	(.31	)		$	(4.13	)		$	(8.55	)
Net income (loss) per diluted share of common stock attributable to the shareholders of The E.W. Scripps Company:
Loss from continuing operations		$	(.07	)		$	(.06	)		$	(3.83	)		$	(10.10	)
Income (loss) from discontinued operations			.01				(.25	)			(.29	)			1.55
Net loss per diluted share of common stock		$	(.06	)		$	(.31	)		$	(4.13	)		$	(8.55	)

Net income (loss) per share amounts may not foot since each is calculated independently.

See notes to condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ( UNAUDITED )

		Nine months ended
		September 30,
(in thousands)		2009				2008
Cash Flows from Operating Activities:
Net loss		$	(221,855	)		$	(417,171	)
Income (loss) from discontinued operations, net of noncontrolling interest			15,676				(130,627	)
Loss from continuing operations			(206,179	)			(547,798	)
Adjustments to reconcile loss from continuing operations to net cash flows from operating activities:
Depreciation and amortization			33,415				34,705
Impairment of goodwill and indefinite-lived assets			216,413				788,900
(Gains)/losses on sale of property, plant and equipment			227				(2,244	)
Equity in earnings of JOAs and other joint ventures			(798	)			(3,399	)
Deferred income taxes			19,141				(268,243	)
Excess tax benefits of stock compensation plans			—				(1,228	)
Stock and deferred compensation plans			6,204				37,458
Dividends received from JOAs and other joint ventures			1,775				4,345
Losses on repurchases of debt			—				26,380
Pension expense, net of payments			20,323				1,171
Other changes in certain working capital accounts, net			14,391				2,110
Miscellaneous, net			(1,937	)			(8,799	)
Net cash provided by continuing operating activities			102,975				63,358
Net cash (used in) provided by discontinued operating activities			(17,434	)			265,575
Net operating activities			85,541				328,933
Cash Flows from Investing Activities:
Additions to property, plant and equipment			(35,539	)			(59,115	)
Decrease (increase) in short-term investments			(124	)			13,816
Proceeds from sale of investments			72				37,091
Increase in investments			(3,376	)			(580	)
Miscellaneous, net			76				(746	)
Net cash used in continuing investing activities			(38,891	)			(9,534	)
Net cash used in discontinued investing activities			—				(38,882	)
Net investing activities			(38,891	)			(48,416	)
Cash Flows from Financing Activities:
Increase in long-term debt			—				69,600
Payments on long-term debt			(31,711	)			(514,784	)
Bond redemption premium payment			—				(22,517	)
Payments of financing costs			(3,062	)			—
Dividends paid			—				(53,957	)
Dividends paid to noncontrolling interests			—				(24	)
Repurchase Class A Common shares			—				(17,125	)
Proceeds from employee stock options			1,820				15,071
Excess tax benefits of stock compensation plans			—				1,228
Miscellaneous, net			(8,665	)			3,931
Net cash used in continuing financing activities			(41,618	)			(518,577	)
Net cash provided by discontinued financing activities			—				257,920
Net financing activities			(41,618	)			(260,657	)
Effect of exchange rate changes on cash and cash equivalents			—				(75	)
Change in cash — discontinued operations			—				(23,268	)
Increase (decrease) in cash and cash equivalents			5,032				(3,483	)
Cash and cash equivalents:
Beginning of year			5,376				19,100
End of period		$	10,408			$	15,617

See notes to condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY ( UNAUDITED )

										Retained				Accumulated
						Additional				Earnings				Other
		Common				Paid-in				(Accumulated				Comprehensive				Noncontrolling				Total
(in thousands, except share data)		Stock				Capital				Deficit)				Income (Loss)				Interests				Equity
As of December 31, 2007		$	543			$	476,142			$	1,971,848			$	1,828			$	141,930			$	2,592,291
Net income (loss)											(463,972	)							46,801				(417,171	)
Unrealized gains (losses) on investments															(682	)							(682	)
Adjustment for losses (gains) in income on investments															(3,655	)							(3,655	)
Change in unrealized gains (losses) on investments															(4,337	)							(4,337	)
Amortization of prior service costs, actuarial losses, and transition obligations															2,081								2,081
Equity in investee’s adjustments for pension															(162	)							(162	)
Currency translation adjustment															(40	)							(40	)
Dividends: declared and paid — $.99 per share											(53,957	)											(53,957	)
Dividends: Noncontrolling interest																			(56,207	)			(56,207	)
Spin-off of SNI											(1,213,484	)			(40,602	)			(129,015	)			(1,383,101	)
Repurchase 883,833 Class A Common shares			(9	)			(9,632	)			(7,484	)											(17,125	)
Compensation plans: 695,965 net shares issued			7				35,359																35,366
Stock modification change							19,547																19,547
Tax benefits of compensation plans							2,090																2,090
As of September 30, 2008		$	541			$	523,506			$	232,951			$	(41,232	)		$	3,509			$	719,275
As of December 31, 2008		$	538			$	523,859			$	200,827			$	(133,655	)		$	3,398			$	594,967
Net loss											(221,708	)							(147	)			(221,855	)
Spin-off of SNI											7,749				1,536								9,285
Amortization of prior service costs, actuarial losses, and transition obligations															8,248								8,248
Pension liability adjustment															35,150								35,150
Currency translation adjustment															(30	)							(30	)
Compensation plans: 718,142 net shares issued			7				9,518																9,525
As of September 30, 2009		$	545			$	533,377			$	(13,132	)		$	(88,751	)		$	3,251			$	435,290

See notes to condensed consolidated financial statements.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

As used in the Notes to Consolidated Financial Statements, the terms “we,” “our,” “us” or “Scripps” 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.

Basis of Presentation — The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The interim financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto included in our 2008 Annual Report on Form 10-K. In management’s opinion, the financial statements include all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the interim periods. Management has evaluated all subsequent events through the November 5, 2009, issuance of these financial statements.

Results of operations are not necessarily indicative of the results for future interim periods or for the full year.

Nature of Operations — We are a media concern with interests in newspaper publishing, broadcast television, and licensing and syndication. All of our media businesses provide content and advertising services via the Internet. Our media businesses are organized into the following reportable business segments: Newspapers, JOAs and newspaper partnerships, Television, and Licensing and other. Note 13 provides additional information regarding our business segments.

On July 1, 2008, we distributed our national cable television networks and interactive media business to our shareholders in a tax-free spin-off. We report results for those businesses as discontinued operations for all periods. See Note 3 for additional information regarding the Spin-off.

Use of Estimates — The preparation of 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 plans; the recognition of certain revenues; rebates due to customers; the periods over which long-lived assets are depreciated or amortized; the fair value of long-lived assets and goodwill; the liability for uncertain tax positions and valuation allowances against deferred income tax assets; estimates for uncollectible accounts receivable; 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.

Concentration of Credit Risk — In order to reduce our price of newsprint and to manage delivery and supply of newsprint, we purchase and arrange delivery of newsprint for other newspaper companies. Newsprint vendors retain the credit risk for newsprint shipped to other newspaper companies beginning in 2009. Prior to 2009, we retained credit risk for newspaper shipments to other newspaper companies.

Revenue Recognition — We recognize revenue when persuasive evidence of a sales arrangement exists, delivery occurs or services are rendered, the sales price is fixed or determinable and collectability is reasonably assured. When a sales arrangement contains multiple elements, such as the sale of advertising and other services, we allocate revenue to each element based upon its relative fair value. Revenue recognition may be ceased on delinquent accounts depending upon a number of factors, including the customer’s credit history, number of days past due, and the terms of any agreements with the customer. Revenue recognition on such accounts resumes when the customer has taken actions to remove their accounts from delinquent status, at which time we recognize any associated deferred revenues. We report revenue net of our remittance of sales taxes and other taxes collected from our customers.

Our primary sources of revenue are from:

	•		The sale of print, broadcast, and Internet advertising
	•		The sale of newspapers
	•		Licensing royalties

The revenue recognition policies for each source of revenue are described in our annual report on Form 10-K for the year ended December 31, 2008.

Share-Based Compensation — We have a Long-Term Incentive Plan (the “Plan”) which is described more fully in our Annual Report on Form 10-K for the year ended December 31, 2008. The Plan provides for the award of incentive and nonqualified share options, share appreciation rights, restricted and unrestricted Class A Common shares and restricted share units, and performance units to key employees and non-employee directors. We issued 9.4 million restricted share units (RSUs) with an aggregate fair value of $8.3 million in the nine months ended September 30, 2009. We recognize the fair value of the awards as an employee’s rights to the awards vest. In the first quarter of 2010, approximately 2.7 million of the RSUs will vest and the holders will receive approximately 1.8 million shares, net of tax withholdings. Employees are not restricted from selling shares received upon the vesting of their RSUs.

Share-Based Equity Awards

Employees holding share-based equity awards at the time of the spin-off of Scripps Networks Interactive, Inc. (“SNI”) received modified awards in Scripps, SNI or both companies based upon whether the awards were vested or unvested and whether the employee was a Scripps or SNI employee. Separation and restructuring costs in the third quarter include incremental compensation of $19.6 million, measured by the excess of the fair value of the modified awards over the fair value of the awards immediately prior to the modifications.

Share based compensation costs for continuing operations totaled $2.0 million for the third quarter of 2009 and $1.0 million for the third quarter of 2008. Year-to-date share based compensation costs for continuing operations totaled $7.0 million in 2009 and $13.7 million in 2008.

There were no share based compensation costs for discontinued operations in 2009. There were no share based compensation costs for discontinued operations for the third quarter of 2008. Year-to-date share based compensation costs for discontinued operations totaled $3.1 million in 2008.

Earnings Per Share (“EPS”) — Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our restricted stock and restricted stock units (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 allocated to common stock. We do not allocate losses to the participating securities. When we adopted this treatment in 2009, we adjusted all prior period earnings per share data to conform to these provisions. This adoption did not result in a change to the previously reported basic EPS and diluted EPS for the three or nine months ended September 30, 2008, due to the reported net loss.

		Three months ended								Nine months ended
		September 30,								September 30,
(in thousands)		2009				2008				2009				2008
Numerator (for both basic and diluted earnings per share)
Net loss attributable to the Shareholders of The E.W. Scripps Company		$	(3,261	)		$	(16,799	)		$	(221,708	)		$	(463,972	)
Less income allocated to unvested restricted stock and RSUs			—				—				—				—
Numerator for basic and diluted earnings per share		$	(3,261	)		$	(16,799	)		$	(221,708	)		$	(463,972	)
Denominator
Basic weighted-average shares outstanding			53,986				54,182				53,734				54,254
Effect of dilutive securities:
Unvested restricted shares and RSUs held by employees			—				—				—				—
Stock options held by employees and directors			—				—				—				—
Diluted weighted-average shares outstanding			53,986				54,182				53,734				54,254
Anti-dilutive securities(1)			21,328				13,006				21,328				13,006

For all reported periods we incurred a net loss and the inclusion of unvested restricted stock, RSUs and stock options held by employees and directors were anti-dilutive, and accordingly the diluted EPS calculation excludes those common share equivalents.

2. ACCOUNTING CHANGES AND RECENTLY ISSUED ACCOUNTING STANDARDS

Accounting Changes — In September 2006, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard, which defined fair value, established a framework for measuring fair value, and expanded disclosures about fair value measurements. In February 2008, the FASB delayed the effective date of this standard for non-financial assets and liabilities, except for those that are recognized or disclosed at fair value in the financial statements on a recurring basis, until January 1, 2009. The adoption of this standard did not have a material impact on our financial statements.

In December 2007, the FASB issued a new accounting standard which established accounting and reporting standards for the noncontrolling interest in a subsidiary, the deconsolidation of a subsidiary, and accounting for noncontrolling interests as equity in the consolidated financial statements at fair value. We adopted this standard as of January 1, 2009. Upon adoption of this standard, we reclassified our noncontrolling interest in subsidiary companies to a separate component of equity and changed the presentation of our statement of operations and statement of cash flows. We have retroactively reclassified all periods presented.

In December 2007, the FASB issued a new accounting standard, which provided guidance relating to recognition of assets acquired and liabilities assumed in a business combination. This standard also established expanded disclosure requirements for business combinations. We adopted this standard effective January 1, 2009, prospectively for all business combinations subsequent to the effective date.

In March 2008, the FASB issued a new accounting standard which amended and expanded the disclosure requirements for derivatives to provide a better understanding of how and why an entity uses derivative instruments, how derivative instruments and related hedged items are accounted for, and their effect on an entity’s financial position, financial performance, and cash flows. We adopted this standard effective January 1, 2009. The adoption of this standard had no impact on our financial statements.

In May 2009, the FASB issued a new accounting standard which provided guidance on management’s assessment of subsequent events and incorporates this guidance into accounting literature. This new standard is effective prospectively for interim and annual periods ending after June 15, 2009. The implementation of this standard did not have a material impact on our consolidated financial position or our results of operations.

New Accounting Pronouncements — In June 2009, the FASB issued a new accounting standard which amended the consolidation guidance applicable to variable interest entities and is effective for us on January 1, 2010. We do not expect this standard to have a material impact on our financial condition or results of operations.

In June 2009, the FASB Accounting Standards Codification^TM and the Hierarchy of Generally Accepted Accounting Principles was issued. The Codification is the source of authoritative U.S. generally accepted accounting principles (U.S. GAAP). The Codification, which changes the referencing of financial standards but does not modify US GAAP, became effective for us on July 1, 2009.

In April 2009, the FASB issued a staff position which changes the method for determining whether an other-than-temporary impairment exists for debt securities and the amount of the impairment to be recorded in earnings. The guidance is effective for interim and annual periods ending after June 15, 2009. The implementation of this standard did not have a material impact on our consolidated financial position and results of operations.

In April 2009, the FASB issued a staff position requiring fair value disclosures in both interim as well as annual financial statements in order to provide more timely information about the effects of current market conditions on financial instruments. The guidance is effective for interim and annual periods ending after June 15, 2009. The implementation of this standard did not have a material impact on our consolidated financial position and results of operations.

In October 2009, the FASB issued amendments to the accounting and disclosure for revenue recognition. These amendments, effective for fiscal years beginning on or after June 15, 2010 (early adoption is permitted), modify the criteria for recognizing revenue in multiple element arrangements and the scope of what constitutes a non-software deliverable. The Company is currently assessing the impact on its consolidated financial position and results of operations.

3. DISCONTINUED OPERATIONS

Spin-off of SNI

On October 16, 2007, we announced that our Board of Directors had authorized management to pursue a plan to separate Scripps into two independent, publicly traded companies (the “Separation”) through the spin-off of SNI to Scripps shareholders. We formed SNI as a wholly owned subsidiary on October 23, 2007, in order to effect the Separation, and transferred all assets and liabilities of the Scripps Networks and Interactive Media businesses to SNI prior to the effective date of the Separation.

On July 1, 2008, we distributed all of the shares of SNI to shareholders of record as of the close of business on June 16, 2008 (the “Record Date”). Shareholders of record received one SNI Class A Common Share for every Scripps Class A Common Share held as of the Record Date and one SNI Common Voting Share for every Scripps Common Voting Share held as of the Record Date.

Following completion of the Separation, we report SNI as discontinued operations in our financial statements for all prior periods

In connection with the Separation, the following agreements between Scripps and SNI became effective:

	•		Separation and Distribution Agreement
	•		Transition Services Agreement
	•		Employee Matters Agreement
	•		Tax Allocation Agreement

These agreements are described in detail in our 2008 Annual Report on Form 10-K.

For the three-and-nine-month periods ended September 30, 2009, we charged SNI $0.1 million and $2.9 million, respectively for services rendered. We paid SNI $0.5 million for the nine-months ended September 30, 2009 for services rendered under the terms of these agreements. We did not make any payments to SNI for the three-months ended September 30, 2009. In 2009, SNI also reimbursed us $16 million for its share of estimated taxes prior to the Separation under the Tax Allocation Agreement. Included in miscellaneous current assets at September 30, 2009, is a $11 million receivable from SNI for the estimated balance due for their portion of taxes for the 2008 tax year. The final amount will be determined in the fourth quarter of 2009 when certain state tax returns are filed for the 2008 tax year.

Closure of Rocky Mountain News

Due primarily to the negative effects of the economy on the advertising revenues of the Denver JOA we determined that indications of impairment of our investment existed as of June 30, 2008. We recorded a non-cash charge of $85 million to reduce the carrying value of our investment in the Denver JOA to our share of the estimated fair value of their net assets in the second quarter of 2008. We recorded an additional $25 million non-cash charge to reduce the carrying value to zero in the third quarter of 2008.

After an unsuccessful search for a buyer, we closed the Rocky Mountain News after it published its final edition on February 27, 2009.

Our Rocky Mountain News and Media News Group, Inc.’s (MNG) Denver Post were partners in The Denver Newspaper Agency (the “Denver JOA”), a limited liability partnership, which operated the sales, production and business operations of the Rocky Mountain News prior to its closure. Each newspaper owned 50% of the Denver JOA and received a 50% share of the profits. Each newspaper provided the Denver JOA with the independent editorial content published in its newspaper.

Under the terms of an agreement with MNG, we transferred our interests in the Denver JOA to MNG in the third quarter of 2009. We recorded no gain or loss on the transfer of our interest in the Denver JOA to MNG.

Following the transfer of our interest, we reported the operations of the Rocky Mountain News and the earnings from our interest in the Denver JOA as discontinued operations in our financial statements for all prior periods.

Operating results of our discontinued operations were as follows:

		Three months ended								Nine months ended
		September 30,								September 30,
(in thousands)		2009				2008				2009				2008
Operating revenues		$	13			$	1,261			$	50			$	804,534
Equity in earnings of JOAs and other joint ventures		$	—			$	922			$	—			$	18,235
Income (loss) from discontinued operations:
Income (loss) from discontinued operations, before tax		$	430			$	(30,072	)		$	(21,587	)		$	194,400
Income tax (expense) benefit			(150	)			16,395				5,911				(63,773	)
Income (loss) from discontinued operations		$	280			$	(13,677	)		$	(15,676	)		$	130,627

Investment banking fees, legal, accounting and other professional and consulting fees directly related to the Separation totaled $46.3 million and $22.9 million for the nine-month and three-month periods ending September 30, 2008, respectively. We allocated $14.7 million and $0.9 million of these costs for the nine-month and three-month period ending September 30, 2008, respectively, to discontinued operations in the Condensed Consolidated Statements of Operations and the remaining costs to continuing operations.

4. OTHER CHARGES AND CREDITS

2009 — Separation and restructuring costs include the costs to restructure our operations and to install separate information systems as well as other costs related to affect the spin-off of SNI. These costs increased loss from continuing operations before taxes by $1.2 million in the third quarter and $4.2 million year-to-date.

In the first quarter we recorded a $215 million, non-cash charge to reduce the carrying value of our goodwill for our Television division. See Note 7.

We also recorded a $1 million non-cash charge to reduce the carrying value of the FCC license for our Lawrence, Kansas, television station.

2008 — In the second quarter we recorded a $779 million, non-cash charge to reduce the carrying value of goodwill. We also recorded a non-cash charge of $10 million to reduce the carrying value of our investment in the Colorado newspaper partnership to our share of the estimated fair value of its net assets.

In the second quarter of 2008, we redeemed the remaining balances of our outstanding notes and recorded a $26.4 million loss on the extinguishment of debt.

Transaction costs and other activities related to the spin-off of SNI increased our costs and expenses by $22 million and $31.6 million, respectively for the three-and-nine-month periods ended September 30, 2008.

Investment results, reported in the caption “Miscellaneous, net” in our Condensed Consolidated Statements of Operations, include realized gains of $7.5 million from the sale of certain investments through the third quarter of 2008.

5. INCOME TAXES

We file a consolidated federal income tax return, consolidated unitary returns in certain states, and other separate subsidiary company state income tax returns in the remaining states in which we have nexus.

The income tax provision for interim periods is determined based upon the expected effective income tax rate for the full year and the tax rate applicable to certain discrete transactions in the interim period. We must estimate both the total income (loss) before income tax for the full year and the jurisdictions in which that income (loss) is subject to tax in calculating the estimated effective income tax rate for the full year. The actual effective income tax rate may differ from these estimates if income (loss) before income tax is greater or less than the estimated amount or if the allocation of income (loss) to tax jurisdictions differs from the estimated allocations. We review and adjust our estimated effective income tax rate each quarter.

The effective income tax rate for the nine months ended September 30, 2009, was 12.3%. Approximately $150 million of the goodwill impairment charge recorded in the first quarter of 2009 is not deductible for income tax purposes, resulting in the difference between the effective income tax rate and the U.S. Federal statutory rate of 35%.

Deferred tax assets totaled $101 million at September 30, 2009. Approximately $44 million of our deferred tax assets reverse in 2009 and 2010. We can use any tax losses resulting from those deferred tax assets to claim refunds of taxes paid in prior periods. Management believes that it is more likely than not that we will realize the benefits of our Federal deferred tax assets and therefore has not recorded a valuation allowance for our deferred tax assets. If current economic conditions persist or worsen, future estimates of taxable income could be lower than our current estimates, which may require valuation allowances to be recorded in future reporting periods. We have recorded a valuation allowance for certain state net operating losses.

Liabilities for uncertain tax positions totaled $19.3 million at September 30, 2009. Under the Tax Allocation Agreement between Scripps and SNI, SNI is responsible for its own pre-spin-off tax obligations. However, we remain severally liable for SNI’s pre-spin-off federal taxes and its state and local income taxes in jurisdictions in which SNI was included in a unitary tax return. SNI is required to indemnify us for any tax assessments related to its share of such federal and state and local income taxes. The liability for uncertain tax positions includes $2.8 million for positions related to SNI’s share of income taxes.

We reached an agreement with the Internal Revenue Service in the second quarter of 2009 to settle the examinations of our 2005 and 2006 federal income tax returns. We reversed unrecognized tax benefits of $0.9 million upon the settlement, increasing our tax benefit for the nine months ended September 30, 2009.

6. JOINT OPERATING AGREEMENT AND NEWSPAPER PARTNERSHIPS

In connection with the closure of the Rocky Mountain News, we also transferred our 50% interest in Prairie Mountain Publishing (“PMP”) to MNG in the third quarter of 2009. Under the terms of the agreement we received a $5 million secured promissory note from MNG which we have recorded at $4.4 million, the carrying value of the assets we gave up. We recorded no gain or loss on the transfer of our partnership interest. PMP, a newspaper partnership with a subsidiary of MNG, operated certain of both companies’ other newspapers in Colorado, including their editorial operations.

In the second quarter of 2008, we recorded a non-cash charge of $10 million to reduce the carrying value in PMP to its estimated fair value.

In the first quarter of 2008, we ceased publication of our Albuquerque Tribune newspaper. At the same time, we also reached an agreement with the Journal Publishing Company (“JPC”), the publisher of the Albuquerque Journal (“Journal”), to terminate the Albuquerque joint operating agreement between the Journal and our Albuquerque Tribune newspaper. Under an amended agreement with the JPC, we own an approximate 40% residual interest in the Albuquerque Publishing Company, G.P. (the “Partnership”) and we pay JPC an amount equal to a portion of the editorial savings realized from ceasing publication of our newspaper. The Partnership directs and manages the operations of the continuing Journal newspaper.

7. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill and other intangible assets consisted of the following:

		As of				As of
		September 30,				December 31,
(in thousands)		2009				2008
Goodwill		$	—			$	215,432
Other intangible assets:
Amortizable intangible assets:
Carrying amount:
Television network affiliation relationships			5,641				5,641
Customer lists			12,469				12,794
Other			6,092				6,193
Total carrying amount			24,202				24,628
Accumulated amortization:
Television network affiliation relationships			(1,540	)			(1,310	)
Customer lists			(7,623	)			(6,919	)
Other			(4,254	)			(4,130	)
Total accumulated amortization			(13,417	)			(12,359	)
Net amortizable intangible assets			10,785				12,269
Indefinite-lived intangible assets — FCC licenses			13,195				14,195
Total other intangible assets			23,980				26,464
Total goodwill and other intangible assets		$	23,980			$	241,896

Activity related to goodwill by business segment was as follows:

										Licensing
(in thousands)		Newspapers				Television				and Other				Total
Goodwill:
Balance as of December 31, 2007		$	785,621			$	215,414			$	18			$	1,001,053
Impairment of goodwill			(778,900	)			—				—				(778,900	)
Other adjustments			(6,721	)			—				—				(6,721	)
Balance as of September 30, 2008		$	—			$	215,414			$	18			$	215,432
Balance as of December 31, 2008		$	—			$	215,414			$	18			$	215,432
Impairment of goodwill			—				(215,414	)			—				(215,414	)
Other adjustments			—				—				(18	)			(18	)
Balance as of September 30, 2009		$	—			$	—			$	—			$	—

Estimated amortization expense of intangible assets for each of the next five years is expected to be $0.4 million for the remainder of 2009, $1.4 million in 2010, $1.3 million in 2011, $1.0 million in 2012, $0.8 million in 2013, $0.7 million in 2014 and $5.2 million in later years.

Due primarily to increases in the cost of capital for local media businesses and declines in our stock price and that of other publicly traded television companies during the first quarter of 2009, we determined that indications of impairment existed for our Television goodwill as of March 31, 2009. We concluded the fair value of our television reporting unit did not exceed the carrying value of our television net assets as of March 31, 2009, and we recorded a $215 million, non-cash charge in the three months ended March 31, 2009, to reduce the carrying value of goodwill. We also recorded a $1 million non-cash charge to reduce the carrying value of the FCC license for our Lawrence, Kansas, television station to its estimated fair value in the first quarter of 2009.

In 2008, due primarily to the continuing negative effects of the economy on our advertising revenues and those of other publishing companies, and the difference between our stock price following the spin-off of SNI to shareholders and the per share carrying value of our remaining net assets, we determined that indications of impairment existed as of June 30, 2008. We concluded the fair value of our newspaper reporting unit did not exceed the carrying value of our newspaper net assets as of June 30, 2008. We recorded a $779 million, non-cash charge in the six months ended June 30, 2008.

Management must make significant judgments to determine fair values, including the valuation methodology and the underlying financial information used in the valuation. These judgments include, but are not limited to, long-term projections of future financial performance and the selection of appropriate discount rates used to determine the present value of future cash flows. Changes in such estimates or the application of alternative assumptions could produce significantly different results.

8. LONG-TERM DEBT

Long-term debt consisted of the following:

		As of				As of
		September 30,				December 31,
(in thousands)		2009				2008
Revolving credit agreement		$	28,400			$	60,000
Other notes			1,055				1,166
Long-term debt (less current portion)		$	29,455			$	61,166
Fair value of long-term debt*		$	29,455			$	61,166

On August 5, 2009, we entered into an Amended and Restated Revolving Credit Agreement (2009 Agreement), which expires June 30, 2013. This Agreement amended and restated the Company’s existing $200 million Revolver and reduces the maximum amount of availability under the facility to $150 million. Borrowings under the 2009 Agreement are limited to a borrowing base, as follows:

	a)		100% of cash maintained in a blocked account (up to $20 million),
	b)		85% of eligible accounts receivable,
	c)		40% of eligible newsprint inventory, and
	d)		50% of the fair market value of eligible real property (limited to $60 million).

At September 30, 2009, we had additional borrowing capacity of $64 million under our Revolver.

Under the terms of the 2009 Agreement we granted the lenders mortgages on certain of the Company’s real property, pledges of the Company’s equity interests in its subsidiaries and security interests in substantially all other personal property, including cash, accounts receivables, inventories and equipment. If at any time, the amount of excess availability (defined as the amount by which the borrowing base exceeds the aggregate borrowings and letters of credit under the 2009 Agreement) is equal to or less than $22.5 million, we must then maintain a fixed charge coverage ratio (as defined therein) of at least 1.1 to 1.0.

Borrowings under the 2009 Agreement bear interest at variable interest rates based on either LIBOR or a base rate, in either case plus an applicable margin that varies depending upon average excess availability. The margin for LIBOR based loans ranges from 2.75% to 3.25% per annum. The margin for base rate loans ranges from 1.75% to 2.25% per annum. The weighted-average interest rate on borrowings under the Revolver was 3.25% and 1.7% at September 30, 2009, and December 31, 2008, respectively.

Commitment fees ranging from 0.50% to 0.75% per annum (depending on utilization) of the total unused commitment are payable under the credit facility.

As of September 30, 2009, and December 31, 2008, we had outstanding letters of credit of $9.7 million and $8.3 million, respectively.

In October 2008, we entered into a 2-year $30 million notional interest rate swap expiring in October 2010. We receive payments based on the 3-month LIBOR and make payments based on a fixed rate of 3.2%. We have not designated the swap as a hedge for accounting purposes. As a result, changes in the fair value of the swap are included in earnings with a corresponding adjustment to other long-term liabilities. The fair value was a $1.0 million liability at September 30, 2009, and a $0.8 million liability at December 31, 2008. Losses on the swap totaling $0.2 million for the nine months ended September 30, 2009, are included in miscellaneous, net in the Condensed Consolidated Statement of Operations.

9. OTHER LIABILITIES

Other liabilities consisted of the following:

		As of				As of
		September 30,				December 31,
(in thousands)		2009				2008
Employee compensation and benefits		$	18,736			$	22,412
Liability for pension benefits			135,440				183,631
Liabilities for uncertain tax positions			19,325				19,840
Other			17,354				19,376
Other liabilities (less current portion)		$	190,855			$	245,259

10. FAIR VALUE MEASUREMENT

We measure certain financial assets at fair value on a recurring basis, including short-term investments and derivatives. Fair value is determined based upon three levels of inputs. The three levels that may be used to measure fair value are as follows:

	•		Level 1 — Quoted prices in active markets for identical assets or liabilities.
	•		Level 2 — Directly or indirectly observable inputs, other than prices quoted in active markets.
	•		Level 3 — Unobservable inputs based on our own assumptions.

The following tables set forth our assets and liabilities that we measure at fair value on a recurring basis:

		September 30, 2009
(in thousands)		Total				Level 1				Level 2				Level 3
Assets:
Short-term investments		$	21,254			$	21,254			$	—			$	—
Liabilities:
Interest rate swap		$	989			$	—			$	989			$	—

		December 31, 2008
(in thousands)		Total				Level 1				Level 2				Level 3
Assets:
Short-term investments		$	21,130			$	21,130			$	—			$	—
Liabilities:
Interest rate swap		$	840			$	—			$	840			$	—

11. NONCONTROLLING INTERESTS

Individuals and other entities own a 4% noncontrolling interest in the capital stock of the subsidiary company that publishes our Memphis newspaper and a 6% noncontrolling interest in the capital stock of the subsidiary company that publishes our Evansville newspaper. We are not required to redeem the noncontrolling interests in these subsidiary companies.

Noncontrolling interest from discontinued operations included a 10% interest in Fine Living and a 30% interest in the Food Network.

A summary of the components of net income (loss) attributable to The E.W. Scripps Company shareholders is as follows:

		Three months ended								Nine months ended
		September 30,								September 30,
(in thousands)		2009				2008				2009				2008
Net income (loss) attributable to The E.W. Scripps Company shareholders:
Loss from continuing operations, net of tax		$	(3,541	)		$	(3,122	)		$	(206,032	)		$	(547,899	)
Income (loss) from discontinued operations, net of tax			280				(13,677	)			(15,676	)			83,927
Net loss		$	(3,261	)		$	(16,799	)		$	(221,708	)		$	(463,972	)

12. EMPLOYEE BENEFIT PLANS

We sponsor defined benefit pension plans that cover substantially all non-union and certain union-represented employees. Benefits earned by employees are generally based upon employee compensation and years of service credits.

We also have a non-qualified Supplemental Executive Retirement Plan (“SERP”). The SERP, which is unfunded, provides defined pension benefits in addition to the defined benefit pension plan to eligible participants based on average earnings, years of service and age at retirement.

Effective June 30, 2009, we froze the accrual of service credits under certain of our defined benefit pension plans that cover a majority of our employees, including our SERP. The freeze resulted in the recognition of a curtailment loss of $4.2 million in the first quarter of 2009 and a gain of $1.1 million in the second quarter of 2009. We also recognized a curtailment loss of $0.9 million in 2009 related to the closure of our Denver newspaper.

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. We suspended our matching contributions in the second quarter of 2009.

Other union-represented employees participate in union-sponsored multi-employer plans.

The components of our retirement expense consisted of the following:

		Three months ended								Nine months ended
		September 30,								September 30,
(in thousands)		2009				2008				2009				2008
Service cost		$	759			$	3,662			$	5,282			$	13,616
Interest cost			6,634				6,847				19,969				21,434
Expected return on plan assets, net of expenses			(4,974	)			(7,228	)			(15,376	)			(25,226	)
Amortization of prior service cost			43				299				334				621
Amortization of actuarial (gain)/loss			1,270				613				7,701				1,187
Curtailment loss			—				—				5,111				—
Total for defined benefit plans			3,732				4,193				23,021				11,632
Multi-employer plans			260				172				579				533
SERP			349				874				242				5,032
Defined contribution plans			—				1,379				1,316				6,160
Net periodic benefit cost			4,341				6,618				25,158				23,357
Allocated to discontinued operations			(57	)			(44	)			(1,898	)			(6,522	)
Net periodic benefit cost — continuing operations		$	4,284			$	6,574			$	23,260			$	16,835

We have met the minimum funding requirements of our qualified defined benefit pension plans. During the first three quarters of 2009, we contributed $0.3 million to our defined benefit plans.

We contributed $3.7 million to fund current benefit payments for our non-qualified SERP plan during the first three quarters of 2009. We anticipate contributing an additional $4 million to fund benefit payments during the remainder of 2009.

In the quarter ended March 31, 2009, we completed the December 31, 2008, actuarial valuation of our defined benefit pension plan obligations, including final demographic information and updated assumptions related to future salaries reflecting the pay and bonus decreases implemented in the first quarter. We also finalized the split of plan assets with SNI in the first quarter of 2009. The changes in actuarial assumptions and plan assets reduced our pension liability and accumulated comprehensive loss by $23.4 million.

We remeasured our plan assets and liabilities in the second quarter of 2009, reflecting the freezing of benefit accruals under the plans. The actuarial assumptions used to remeasure the plan assets and liabilities were substantially the same as those used in the December 31, 2008, measurement, except for an increase in the discount rate to 7%. The remeasurement reduced our pension liabilities and accumulated comprehensive loss by $36 million.

13. SEGMENT INFORMATION

We determine our business segments based upon our management and internal reporting structure. Our reportable segments are strategic businesses that offer different products and services.

Our newspaper business segment includes daily and community newspapers in 13 markets in the U.S. Newspapers earn revenue primarily from the sale of advertising to local and national advertisers and from the sale of newspapers to readers.

Prior to ceasing publication, our Albuquerque newspaper operated pursuant to the terms of a joint operating agreement. The newspaper maintained an independent editorial operation and received a share of the operating profits of the combined newspaper operations. We continue to maintain our ownership interest in the Albuquerque partnership; however, we do not include the equity earnings of the partnership in segment profit after publication of the newspaper ceased.

Television includes six ABC-affiliated stations, three NBC-affiliated stations and one independent station. Our television stations reach approximately 10% of the nation’s television households. Television stations earn revenue primarily from the sale of advertising to local and national advertisers.

Licensing and other media primarily include licensing of worldwide copyrights relating to “Peanuts,” “Dilbert” and other properties for use on numerous products, including plush toys, greeting cards and apparel, for promotional purposes and for exhibit on television and other media syndication of news features and comics and other features for the newspaper industry.

The accounting policies of each of our business segments are those described in Note 1 in our Annual Report on Form 10-K for the year ended December 31, 2008.

We allocate a portion of certain corporate costs and expenses, including information technology, pensions and other employee benefits, and other shared services, to our business segments. The allocations are generally amounts agreed upon by management, which may differ from an arms-length amount. Corporate assets are primarily cash, cash equivalents and other short-term investments, property and equipment primarily used for corporate purposes, and deferred income taxes.

Our chief operating decision maker evaluates the operating performance of our business segments and makes decisions about the allocation of resources to our business segments using a measure we call segment profit. Segment profit excludes interest, 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.

Information regarding our business segments is as follows:

		Three months ended								Nine months ended
		September 30,								September 30,
(in thousands)		2009				2008				2009				2008
Segment operating revenues:
Newspapers		$	104,397			$	131,103			$	338,031			$	431,135
JOA and newspaper partnerships			—				25				—				74
Television			59,782				76,919				181,286				233,458
Licensing and other			22,222				22,185				65,610				71,645
Corporate and shared services			—				13				—				456
Total operating revenues		$	186,401			$	230,245			$	584,927			$	736,768
Segment profit (loss):
Newspapers		$	10,875			$	14,001			$	29,252			$	58,625
JOA and newspaper partnerships			—				268				(211	)			(813	)
Television			3,057				16,966				5,493				49,441
Licensing and other			3,150				1,547				8,173				6,088
Corporate and shared services			(8,040	)			(6,458	)			(22,027	)			(35,456	)
Depreciation and amortization			(10,907	)			(11,947	)			(33,415	)			(34,517	)
Impairment of goodwill and indefinite-lived assets			—				—				(216,413	)			(778,900	)
Equity earnings in newspaper partnership			587				599				1,011				3,453
Gains (losses) on disposal of property, plant and equipment			130				(17	)			(227	)			2,244
Interest expense			(1,149	)			—				(1,558	)			(10,547	)
Separation and restructuring costs			(1,221	)			(22,020	)			(4,155	)			(31,629	)
Write-down of investment in newspaper partnership			—				—				—				(10,000	)
Losses on repurchases of debt			—				—				—				(26,380	)
Miscellaneous, net			270				(508	)			(988	)			7,136
Loss from continuing operations before income taxes		$	(3,248	)		$	(7,569	)		$	(235,065	)		$	(801,255	)
Depreciation:
Newspapers		$	5,715			$	5,517			$	17,026			$	16,327
JOA and newspaper partnerships			—				305				—				916
Television			4,305				4,788				13,399				13,925
Licensing and other			312				242				949				478
Corporate and shared services			193				285				556				460
Total depreciation		$	10,525			$	11,137			$	31,930			$	32,106
Amortization of intangibles:
Newspapers		$	297			$	525			$	1,234			$	1,563
Television			85				285				251				848
Total amortization of intangibles		$	382			$	810			$	1,485			$	2,411
Additions to property, plant and equipment:
Newspapers		$	11,804			$	14,474			$	34,069			$	39,895
JOA and newspaper partnerships			17				1				17				31
Television			3,677				5,654				5,156				16,675
Licensing and other			30				270				327				1,538
Corporate and shared services			43				3,421				138				3,583
Total additions to property, plant and equipment		$	15,571			$	23,820			$	39,707			$	61,722