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Intangible Assets
 6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
The gross carrying amount and accumulated amortization of the Company’s intangible assets as of June 30, 2020 and December 31, 2019 are as follows (dollars in thousands):
 
 
Indefinite-Lived
 
Definite-Lived
 
Total
Gross Carrying Amount
 

FCC licenses
 
Trademarks
 
Affiliate and producer relationships
 
Broadcast advertising
 
Tower income contracts
 
Other
 
 
Balance as of December 31, 2019
 
$
830,490

 
$
19,921

 
$
130,000

 
$
32,000

 
$
13,721

 
$
11,191

 
$
1,037,323

Impairment charges
 
(4,509
)
 
—

 
—

 
—

 
—

 
—

 
(4,509
)
Assets held for sale (see Note 1)
 
(263
)
 
(16
)
 
—

 
—

 
(16
)
 
(11
)
 
(306
)
Dispositions
 
(52
)
 
(2
)
 
—

 
—

 
(1
)
 
(45
)
 
(100
)
Balance as of June 30, 2020
 
$
825,666

 
$
19,903

 
$
130,000

 
$
32,000

 
$
13,704

 
$
11,135

 
$
1,032,408

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated Amortization
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2019
 
$
—

 
$
—

 
$
(18,712
)
 
$
(10,133
)
 
$
(2,414
)
 
$
(11,191
)
 
$
(42,450
)
Amortization Expense
 
—

 
—

 
(5,909
)
 
(3,200
)
 
(762
)
 
—

 
(9,871
)
Assets held for sale (see Note 1)
 
—

 
—

 
—

 
—

 
3

 
11

 
14

Dispositions
 
—

 
—

 
—

 
—

 
—

 
45

 
45

Balance as of June 30, 2020
 
$
—

 
$
—

 
$
(24,621
)
 
$
(13,333
)
 
$
(3,173
)
 
$
(11,135
)
 
$
(52,262
)
Net Book Value as of June 30, 2020
 
$
825,666

 
$
19,903

 
$
105,379

 
$
18,667

 
$
10,531

 
$
—

 
$
980,146


The Company performs impairment testing of its indefinite-lived intangible assets annually as of December 31 of each year and on an interim basis if events or circumstances indicate that its indefinite-lived intangible assets may be impaired. The Company reviews the carrying amount of its definite-lived intangible assets, primarily broadcast advertising and affiliate relationships, for recoverability prior to its annual impairment test and whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company considered the current and expected future economic and market conditions surrounding COVID-19, the adverse impact on the trading value of the Company's publicly-traded equity and on the Company's second quarter 2020 results, the continuing uncertainty surrounding the duration and magnitude of the economic impact of the pandemic and other potential indicators of impairment and determined a triggering event occurred which necessitated an interim impairment test as of June 30, 2020.
In estimating the fair value of the FCC licenses, we began with the market revenue projections based on third-party radio industry data, which considered the impact of COVID-19. Next, we estimated the percentage of the market's total revenue, or market share, that market participants could reasonably expect an average start-up station to attain, as well as the duration (in years) required to reach the average market share. The estimated average market share was computed based on market share data, by station type (i.e., AM and FM) and signal strength. Below are the key assumptions used in our interim impairment assessment:
 
 
June 30, 2020
Discount rate
 
8.0
 %
Long-term revenue growth rate
 
(0.75
)%
Mature operating profit margin for average stations in the markets where the Company operates
 
20% – 30%


As a result of the impairment test as of June 30, 2020, the Company recorded a non-cash impairment charge of $4.5 million on its FCC licenses which is included in the Impairment of Intangible Assets financial statement line item of the Company's Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020.
The Company also performed an interim impairment test as of June 30, 2020 on its trademarks. As a result of our impairment test of our trademarks, there was no impairment recorded. In addition, based on the Company's test of recoverability using estimated undiscounted future cash flows, the carrying amounts of the Company's definite-lived intangible and long-lived assets were determined to be recoverable, and no impairment was recognized.
While management believes the estimates and assumptions utilized to calculate the fair value of the Company's tangible and intangible long-lived assets are reasonable, it is possible a material change could occur to the estimated fair value of these assets. Uncertainty regarding the full extent of the economic downturn as a result of COVID-19, as well as the timing of any recovery, may result in the Company's actual results not being consistent with its estimates, and the Company could be exposed to future impairment losses that could be material to its results of operations. We will continue to monitor changes in economic and market conditions related to COVID-19 and if any events or circumstances indicate a triggering event has occurred, we will perform an interim impairment test of our intangible assets at the appropriate time.