Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The gross carrying amount and accumulated amortization of the Company’s intangible assets as of September 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 September 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	—		—		(8,864)		(4,800)		(1,142)		—		(14,806)
Assets held for sale (see Note 1)	—		—		—		—		3		11		14
Dispositions	—		—		—		—		—		45		45

Balance as of September 30, 2020	$	—	$	—	$	(27,576)	$	(14,933)	$	(3,553)	$	(11,135)	$	(57,197)
Net Book Value as of September 30, 2020	$	825,666	$	19,903	$	102,424	$	17,067	$	10,151	$	—	$	975,211

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 management believes 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, and other potential indicators of impairment and determined a triggering event had not occurred which would necessitate any interim impairment tests during the three months ended September 30, 2020.

During the second quarter of 2020, management 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:


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 unaudited Condensed Consolidated Statements of Operations for the nine months ended September 30, 2020.

We will continue to monitor changes in economic and market conditions related to COVID-19 and if any events or circumstances indicate an additional triggering event has occurred, we will perform an interim impairment test of our intangible assets at the appropriate time.