ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2019

Discontinued Operations And Disposal Groups Abstract

ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

13.ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

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.

As of December 31, 2018, the Company entered into an agreement with a third party to dispose of land and land improvements, buildings and equipment. The Company conducted an analysis and determined the assets met the criteria to be classified as held for sale. In aggregate, these assets had a carrying value of approximately $19.6 million. In the first quarter of 2019, the Company completed this sale for $24.5 million in cash. The Company recognized a gain on the sale, net of sales commissions and other expenses, of approximately $4.5 million.

On February 13, 2019, the Company entered into an agreement with Cumulus Media Inc. (“Cumulus”) under which the Company will exchange three of its stations in Indianapolis, Indiana for two Cumulus stations in Springfield, Massachusetts, and one Cumulus station in New York City, New York. The Company and Cumulus began programming the respective stations under an LMA on March 1, 2019. The Company conducted an analysis and determined the assets to be exchanged to Cumulus met the criteria to be classified as held for sale at March 31, 2019. The exchange transaction (the “Cumulus Exchange”) closed in the second quarter of 2019 and the Company recognized a loss on the exchange of approximately $1.8 million.

On May 1, 2019, the Company entered into an agreement with a third party to dispose of land, buildings, equipment and a broadcasting license in Victor Valley, California. The Company conducted an analysis and determined the assets met the criteria to be classified as held for sale. In aggregate, these assets have a carrying value of $1.1 million. The transaction is expected to close in the second half of 2019.

On May 9, 2019, the Company entered into an agreement with a third party to dispose of land and buildings in Miami, Florida. The Company conducted an analysis and determined the assets met the criteria to be classified as held for sale. In aggregate, these assets have a carrying value of $2.2 million. The transaction is expected to close in the second half of 2019.

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. This is considered a Level 3 measurement.

The major categories of these assets held for sale are as follows:

	Assets Held for Sale
	June 30, 2019		December 31, 2018
	(amounts in thousands)
Land and land improvements	$	1,627	$	2,645
Building		814		1,053
Equipment		61		15,905
Net property and equipment		2,502		19,603
Net radio broadcasting licenses		805		-
Total intangibles		805		-
Net assets held for sale	$	3,307	$	19,603

Discontinued Operations

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

Refer to Note 2, Business Combinations, for additional information on the Bonneville Transaction.

The following table presents the results of operations of the discontinued operations:

	Six Months Ended
	June 30,
	2019		2018
	(amounts in thousands)
Net time brokerage agreement (income) fees		-		1,595
Income before income taxes		-		1,595
Income taxes		-		423
Income from discontinued operations,
net of income taxes	$	-	$	1,172

	Three Months Ended
	June 30,
	2019		2018
	(amounts in thousands)
Net time brokerage agreement income		-		1,180
Income before income taxes		-		1,180
Income taxes		-		336
Income from discontinued operations,
net of income taxes	$	-	$	844