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INTANGIBLE ASSETS AND GOODWILL
12 Months Ended
Dec. 29, 2019
INTANGIBLE ASSETS AND GOODWILL  
INTANGIBLE ASSETS AND GOODWILL

6.  INTANGIBLE ASSETS AND GOODWILL

Changes in identifiable intangible assets and goodwill consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

December 30,

    

Disposition

    

Impairment

    

Amortization

    

December 29,

 

(in thousands)

    

2018

    

Adjustment

    

Charges

    

Expense

    

2019

 

Intangible assets subject to amortization

 

$

838,336

 

$

 —

 

$

 —

 

$

 

$

838,336

 

Accumulated amortization

 

 

(807,725)

 

 

 —

 

 

 —

 

 

(24,153)

 

 

(831,878)

 

 

 

 

30,611

 

 

 —

 

 

 —

 

 

(24,153)

 

 

6,458

 

Mastheads

 

 

112,736

 

 

 —

 

 

(49,941)

 

 

 —

 

 

62,795

 

Goodwill

 

 

705,174

 

 

 —

 

 

(284,996)

 

 

 

 

420,178

 

Total

 

$

848,521

 

$

 —

 

$

(334,937)

 

$

(24,153)

 

$

489,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

December 31,

    

Disposition

    

Impairment

    

Amortization

    

December 30,

 

(in thousands)

 

2017

 

Adjustment

 

Charges

 

Expense

 

2018

 

Intangible assets subject to amortization

 

$

839,284

 

$

(948)

 

$

 —

 

$

 

$

838,336

 

Accumulated amortization

 

 

(761,013)

 

 

948

 

 

 —

 

 

(47,660)

 

 

(807,725)

 

 

 

 

78,271

 

 

 —

 

 

 —

 

 

(47,660)

 

 

30,611

 

Mastheads

 

 

149,951

 

 

 —

 

 

(37,215)

 

 

 

 

112,736

 

Goodwill

 

 

705,174

 

 

 —

 

 

 —

 

 

 

 

705,174

 

Total

 

$

933,396

 

$

 —

 

$

(37,215)

 

$

(47,660)

 

$

848,521

 

 

Impairment of Goodwill and Intangible Assets

 

During the year ended December 29, 2019, we performed an interim and annual testing of impairment of goodwill and intangible newspaper mastheads due to the continuing challenging business conditions and changes in our assessment of profitability in future years. The fair values of our reporting units for goodwill impairment testing and individual newspaper mastheads were estimated using the present value of expected future cash flows, using estimates, judgments and assumptions (see Note 3) that we believe were appropriate in the circumstances. As a result, we recorded goodwill impairment charges of $258.1 million and $285.0 million during the third quarter and the full year ended December 29, 2019, respectively. We also recorded an intangible newspaper masthead impairment charges of $37.2 million and $49.9 million in third quarter and full year ended December 29, 2019, respectively. These impairments were recorded in the goodwill and other asset write-downs line item on our consolidated statements of operations. 

 

During the third quarter and full year ended December 30, 2018, based on our interim and annual impairment testing of intangible newspaper mastheads, we recorded $14.1 million and $37.2 million, respectively, in masthead impairments. These impairment charges  were recorded in other asset write-downs line item on our consolidated statements of operations. There were no goodwill impairment charges during 2018.

 

Accumulated changes in indefinite lived intangible assets and goodwill as of December 29, 2019, and December 30, 2018, consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 29, 2019

 

 

December 30, 2018

 

 

    

Original Gross

    

Accumulated

    

Carrying

 

 

Original Gross

    

Accumulated

    

Carrying

 

(in thousands)

 

Amount

 

Impairment

 

Amount

 

 

Amount

 

Impairment

 

Amount

 

Mastheads

 

$

684,500

 

$

(621,705)

 

$

62,795

 

 

$

684,500

 

$

(571,764)

 

$

112,736

 

Goodwill

 

 

3,571,111

 

 

(3,150,933)

 

 

420,178

 

 

 

3,571,111

 

 

(2,865,937)

 

 

705,174

 

Total

 

$

4,255,611

 

$

(3,772,638)

 

$

482,973

 

 

$

4,255,611

 

$

(3,437,701)

 

$

817,910

 

Amortization expense was $24.2 million and $47.7 million in 2019 and 2018, respectively. A majority of the intangible assets subject to amortization became fully amortized in the second quarter of 2019 and therefore amortization expense during the last six months of 2019 was significantly lower. The estimated amortization expense for the five succeeding fiscal years is as follows: 

 

 

 

 

 

 

 

    

Amortization

 

 

 

Expense

 

Year

 

(in thousands)

 

2020

 

$

803

 

2021

 

 

680

 

2022

 

 

655

 

2023

 

 

667

 

2024

 

 

640