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INTANGIBLE ASSETS AND GOODWILL
3 Months Ended
Mar. 29, 2020
INTANGIBLE ASSETS AND GOODWILL  
INTANGIBLE ASSETS AND GOODWILL

6.  INTANGIBLE ASSETS AND GOODWILL

 

Intangible assets subject to amortization (primarily advertiser lists, subscriber lists and developed technology), mastheads and goodwill consisted of the following: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 29,

 

Impairment

 

Amortization

 

March 29,

(in thousands)

    

2019

    

Charges

    

Expense

    

2020

Intangible assets subject to amortization

 

$

838,336

 

$

 —

 

$

 —

 

$

838,336

Accumulated amortization

 

 

(831,878)

 

 

 —

 

 

(224)

 

 

(832,102)

 

 

 

6,458

 

 

 —

 

 

(224)

 

 

6,234

Mastheads

 

 

62,795

 

 

(4,769)

 

 

 —

 

 

58,026

Goodwill

 

 

420,178

 

 

(58,993)

 

 

 —

 

 

361,185

Total

 

$

489,431

 

$

(63,762)

 

$

(224)

 

$

425,445

 

Impairment of Goodwill and Intangible Assets

 

During the quarter ended March 29, 2020, we performed an interim test of impairment of goodwill and intangible newspaper mastheads due to the continuing challenging business conditions, the impact of COVID-19, 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 impairment charges in our Western and Eastern reporting units related to goodwill of $19.9 million and $39.1 million, respectively, during the quarter ended March 29, 2020. We also recorded an intangible newspaper masthead impairment charge of $4.8 million in the first quarter of 2020. These impairments were recorded in the goodwill and other asset write-downs line item on our condensed consolidated statements of operations.

 

We had no impairment of goodwill or intangible newspaper mastheads during the three months ended March 31, 2019.

 

Amortization expense with respect to intangible assets is summarized below:

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 29,

 

March 31,

(in thousands)

 

2020

 

2019

Amortization expense

 

 $

224

 

 $

11,801

 

The estimated amortization expense for the remainder of fiscal year 2020 and the five succeeding fiscal years is as follows: 

 

 

 

 

 

 

 

Amortization

 

 

Expense

Year

 

(in thousands)

2020 (Remainder)

 

$

579

2021

 

 

680

2022

 

 

655

2023

 

 

667

2024

 

 

640

2025

 

 

363