Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

NOTE 7

Goodwill and Intangible Assets

The following table summarizes the carrying amount of goodwill and intangible assets (in thousands):

	December 31, 2012							December 31, 2011
	Gross carrying amount		Accumulated amortization			Net		Gross carrying amount		Accumulated amortization			Net
Goodwill (1)	$	13,293	$	—		$	13,293	$	13,293	$	—		$	13,293
Intangible assets:
Broadcast licenses (1)	$	37,430	$	—		$	37,430	$	37,430	$	—		$	37,430
Other intangible assets		285		—			285		285		—			285
Intangible assets subject to amortization (2)
Network affiliation agreement		3,560		(1,203	)		2,357		3,560		(968	)		2,592
Total intangible assets	$	41,275	$	(1,203	)	$	40,072	$	41,275	$	(968	)	$	40,307

(1) Goodwill and broadcast licenses are considered indefinite-lived assets for which no periodic amortization is recognized. The television and radio broadcast licenses are issued by the FCC and provide the Company with the exclusive right to utilize certain frequency spectrum to air its stations’ programming. While FCC licenses are issued for only a fixed time, renewals of FCC licenses have occurred routinely and at nominal cost. Moreover, the Company has determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of its FCC licenses.

(2) Intangible assets subject to amortization are amortized on a straight-line basis. Total amortization expense for intangible assets subject to amortization for the years ended December 31, 2012, 2011 and 2010 was $235,000, $236,000 and $236,000, respectively.

The following table presents the Company’s estimate of amortization expense for each of the next five years and thereafter for intangible assets subject to amortization recorded on its books as of December 31, 2012 (in thousands):

Year ending December 31,
2013	$	236
2014		236
2015		236
2016		236
2017		236
Thereafter		1,177
	$	2,357

The change in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 was as follows (in thousands):

	December 31,
	2012			2011
Beginning balance	$	51,709		$	51,709
Accumulated impairment losses		(38,416	)		(38,416	)
Ending balance	$	13,293		$	13,293

The change in the carrying amount of intangible assets for the years ended December 31, 2012 and 2011 was as follows (in thousands):

	December 31,
	2012			2011
Beginning balance	$	40,307		$	40,543
Amortization		(235	)		(236	)
Ending balance	$	40,072		$	40,307

The Company is required to test goodwill and intangible assets for impairment at least annually, or whenever events indicate that impairment may exist. The Company performs its annual impairment measurement test on October 1 ^st. The Company has determined that the impairment test should be conducted at the operating segment level (which is at a reporting unit level), which, with respect to the broadcast operations, requires separate assessment of each of the Company’s television and radio station groups.

The Company determines fair value based on valuation methodologies that include an analysis of market transactions for comparable businesses, discounted cash flows and a review of the underlying assets of the reporting unit. Based on the impairment analyses the Company performed in 2012 and 2011, no impairment charges were recorded. See Note 1 for the discussion of the Company’s accounting policy for impairment of goodwill and indefinite-lived intangible assets.