GOODWILL AND RADIO BROADCASTING LICENSES:

6 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

3.	GOODWILL AND RADIO BROADCASTING LICENSES:

Impairment Testing

In accordance with ASC 350, “Intangibles - Goodwill and Other,” we do not amortize our indefinite-lived radio broadcasting licenses and goodwill. Instead, we perform a test for impairment annually or on an interim basis when events or changes in circumstances or other conditions suggest impairment may have occurred. Other intangible assets continue to be amortized on a straight-line basis over their useful lives. We perform our annual impairment test as of October 1 of each year.

Valuation of Broadcasting Licenses

During the first and second quarters of 2014, the total market revenue growth for certain markets in which we operate was below that used in our 2013 annual impairment testing. We deemed that to be an impairment indicator that warranted interim impairment testing of certain markets’ radio broadcasting licenses, which we performed as of March 31, 2014, and June 30, 2014. There was no impairment identified as part of this testing. During the first and second quarters of 2013, the total market revenue growth for certain markets in which we operate was below that used in our 2012 annual impairment testing. We deemed that to be an impairment indicator that warranted interim impairment testing of certain markets’ radio broadcasting licenses, which we performed as of March 31, 2013, and June 30, 2013. The Company recorded an impairment charge of approximately $1.4 million related to our Cincinnati FCC radio broadcasting licenses during the first quarter of 2013. In addition, the Company recorded an impairment charge of approximately $9.8 million related to our Philadelphia, Cincinnati and Cleveland radio broadcasting licenses during the second quarter of 2013. The remaining radio broadcasting licenses that were tested during the second quarter of 2013 were not impaired. There were no impairment indicators present for any of our other radio broadcasting licenses. Below are some of the key assumptions used in the income approach model for estimating broadcasting licenses fair values for the annual impairment assessment as of October 1, 2013, and interim impairment assessments for the quarters ended June 30, 2014 and 2013.

Radio Broadcasting	June 30,			October 1,			June 30,
Licenses	2014 (a)			2013			2013 (a)

Pre-tax impairment charge (in millions)	$	—		$	—		$	9.8

Discount Rate		9.5	%		10.0	%		10.5	%
Year 1 Market Revenue Growth Rate Range		1.5% - 2.2	%		0.0% – 2.0	%		2.0	%
Long-term Market Revenue Growth Rate Range (Years 6 – 10)		2.0	%		1.0% – 2.0	%		1.5% -2.0	%
Mature Market Share Range		6.4% – 26.9	%		6.4% – 26.9	%		8.6% - 15.1	%
Operating Profit Margin Range		34.8% - 47.8	%		30.8% – 47.8	%		32.6% - 34.4	%

(a)	Reflects changes only to the key assumptions used in the interim testing for certain units of accounting.

Valuation of Goodwill

During the first and second quarters of 2014, we identified impairment indicators at certain of our radio markets, and, as such, we performed an interim impairment analysis for certain radio market reporting units as of June 30, 2014 and March 31, 2014. No goodwill impairment was identified during the three or six months ended June 30, 2014. Due to the fact that there was an impairment charge recognized for certain FCC licenses during the three and six months ended June 30, 2013, we deemed to that to be a goodwill impairment indicator and as such, we performed an interim analysis for certain radio markets’ goodwill. No goodwill impairment was identified during the three or six months ended June 30, 2013. Below are some of the key assumptions used in the income approach model for estimating reporting unit fair values for the annual impairment assessment as of October 1, 2013, and interim impairment assessments for the quarters ended June 30, 2014 and 2013.

Goodwill (Radio Market	June 30,			October 1,			June 30,
Reporting Units)	2014 (a)			2013 (b)			2013 (a)

Pre-tax impairment charge (in millions)	$	–		$	–		$	–

Discount Rate		9.5	%		10.0	%		10.5	%
Year 1 Market Revenue Growth Rate Range		1.3% - 1.5	%		0.0% -2.0	%		1.5	%
Long-term Market Revenue Growth Rate Range (Years 6 – 10)		1.5% - 2.0	%		1.0% - 2.0	%		1.2% – 1.5	%
Mature Market Share Range		7.8% - 9.5	%		7.1% - 19.8	%		9.2% - 14.4%	%
Operating Profit Margin Range		27.9% - 34.8	%		28.4% - 56.4	%		25.4% - 40.4	%

	(a)	Reflects changes only to the key assumptions used in the interim testing for certain units of accounting.

(b)

Reflects the key assumptions for testing only those radio markets with remaining goodwill.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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