ASSETS HELD FOR SALE (Block)

12 Months Ended

Dec. 31, 2017

Discontinued Operations And Disposal Groups Abstract

Disposal Groups Including Discontinued Operations Disclosure Text Block

19. ASSETS HELD FOR SALE

Assets Held for Sale

Long-lived assets to be sold are classified as held for sale in the period in which they meet all the criteria for the disposal of long-lived assets. The Company measures assets held for sale at the lower of their carrying amount or fair value less cost to sell. Additionally, the Company determined that these assets comprise operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company.

On November 1, 2017, in order to facilitate the Merger, the Company assigned assets to a trust and the trust subsequently entered into two separate LMAs with Bonneville which became effective upon the closing of the Merger. Under the terms of the LMAs, Bonneville began operating four stations in Sacramento, California and four stations in San Francisco, California. The LMAs will terminate upon the earlier of: (i) one year after the Merger date; or (ii) consummation of a final agreement to divest the stations as required under a DOJ consent order agreed to by the Company, as a condition to complete the Merger. Of the eight radio stations currently operated by Bonneville, three were originally owned by the Company and the remaining five were originally owned by CBS Radio. The Company conducted an analysis and determined the assets of the eight radio stations met the criteria to be classified as held for sale. The five CBS Radio stations met the criteria to be classified within discontinued operations at December 31, 2017. This transaction is expected to close within one year.

As of December 31, 2017, the Company entered into an agreement to dispose of a parcel of land along with the land improvements in Chicago, Illinois for $46.0 million and classified these assets as held for sale. This transaction, which is expected to be completed in the second half of 2018, is expected to result in no gain or loss.

At December 31, 2016, the Company had no assets held for sale.

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company determined that the carrying value of these assets was less than the fair value by utilizing offers from third parties for a bundle of assets. This is considered a Level 3 measurement.

The major categories of these assets held for sale, which includes the assets of the discontinued operations, are as follows:

	Assets Held for Sale
	December 31, 2017
					Other
			Bonneville		Assets Held
	Total		LMA		for Sale
	(amounts in thousands)
Land and land improvements	$	47,110	$	1,110	$	46,000
Building		1,970		1,520		450
Leasehold improvements		88		88		-
Equipment		2,618		2,618		-
Net property and equipment		51,786		5,336		46,450
Net radio broadcasting licenses		136,014		136,014		-
Other intangibles		1,947		1,947		-
Goodwill		22,573		22,573		-
Total intangibles		160,534		160,534		-
Net assets held for sale	$	212,320	$	165,870	$	46,450

Discontinued Operations

The results of operations for several radio stations acquired from CBS, which will never be a part of the Company’s continuing operations as these radio stations have been disposed or are expected to be disposed, were classified as discontinued operations for the period commencing after the Merger.

Refer to Note 3, Business Combinations, for additional information on the iHeartMedia Transaction, the Beasley Transaction, and the Bonneville Transaction.

The Company did not have any discontinued operations for the years ending December 31, 2016 or December 31, 2015. The following table presents the results of operations of the discontinued operations for the year ended December 31, 2017:

	Year Ended
	December 31,
	2017
	(amounts in thousands)
Net broadcast revenues	$	5,494
Station operating expenses		4,749
Depreciation and amortization expense		9
Net time brokerage agreement (income) fees		(652)
Total operating expenses		4,106
Income (loss) before income taxes (benefit)		1,388
Income taxes (benefit)		552
Income (loss) from discontinued operations,
net of income taxes (benefit)	$	836