Intangible Assets and Goodwill

The carrying value of goodwill by reportable segments is as follows (dollars in thousands):



	Cumulus Radio Station Group			Westwood One			Consolidated
Balance as of January 1, 2018 (Predecessor Company)
Goodwill	$	1,278,526		$	304,280		$	1,582,806
Accumulated impairment losses	(1,278,526		)	(169,066		)	(1,447,592		)
Balance as of January 1, 2018 (Predecessor Company)	$	—		$	135,214		$	135,214
Balance as of June 3, 2018 (Predecessor Company)
Goodwill	$	1,278,526		$	304,280		$	1,582,806
Accumulated impairment losses	(1,278,526		)	(169,066		)	(1,447,592		)
Balance as of June 3, 2018 (Predecessor Company)	$	—		$	135,214		$	135,214
Impact of fresh start accounting	—			(135,214		)	(135,214		)
Balance as of June 4, 2018 (Successor Company)	$	—		$	—		$	—

Prior to the application of fresh start accounting, goodwill represented the excess of the amount paid to acquire businesses over the fair value of their net assets at the date of the acquisition. The Company eliminated goodwill upon application of fresh start accounting (see Note 3, “Fresh Start Accounting”).

Intangible Assets

In connection with the Company’s adoption of fresh start accounting on the Effective Date, intangible assets and related accumulated amortization of the Predecessor Company were eliminated. Intangible assets of the Successor Company were identified and valued at their fair value, as determined by valuation specialists. The Company’s intangible assets are as follows (dollars in thousands):



Intangible Assets:	FCC Licenses			Definite-Lived			Total
Balance as of January 1, 2018 (Predecessor Company)	$	1,203,809		$	82,994		$	1,286,803
Dispositions	—			—			—
Amortization	—			(7,938		)	(7,938		)
Balance as of June 3, 2018 (Predecessor Company)	$	1,203,809		$	75,056		$	1,278,865
Impact of fresh start accounting	(285,309		)	137,402			(147,907		)
Balance as of June 4, 2018 (Successor Company)	$	918,500		$	212,458		$	1,130,958
Transfer to assets held for sale	(203		)	(39		)	(242		)
Amortization	—			(10,771		)	(10,771		)
Acquisition	17,476			—			17,476
Balance as of September 30, 2018 (Successor Company)	$	935,773		$	201,648		$	1,137,421

As part of fresh start accounting, the Company removed existing intangibles and accumulated amortization and recorded an adjustment of $147.9 million to reflect the fair value of intangibles. (See Note 3, “Fresh Start Accounting").

The Company performs impairment testing of its Federal Communications Commission (“FCC”) licenses and goodwill annually as of December 31 of each year and on an interim basis if events or circumstances indicate that FCC licenses or goodwill may be impaired. The Company reviews the carrying value of its definite-lived intangible assets, primarily broadcast advertising and affiliate relationships for recoverability prior to its annual impairment test of goodwill and whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Events and circumstances did not necessitate any interim impairment tests during the three months ended September 30, 2018, nor did the Company have goodwill as of September 30, 2018.