INTANGIBLE ASSETS AND GOODWIL

9 Months Ended

Sep. 30, 2019

Goodwil And Intangible Assets Disclosure [Abstract]

Goodwill And Intangible Assets Disclosure Text Block

5.INTANGIBLE ASSETS AND GOODWILLGoodwill and certain intangible assets are not amortized for book purposes. They may be, however, amortized for tax purposes. The Company accounts for its acquired broadcasting licenses as indefinite-lived intangible assets and, similar to goodwill, these assets are reviewed at least annually for impairment. At the time of each review, if the fair value is less than the carrying value of the reporting unit, then a charge is recorded to the results of operations.The following table presents the changes in the carrying value of broadcasting licenses. Refer to Note 2, Business Combinations, and Note 13, Assets Held For Sale And Discontinued Operations, for additional information.

	Broadcasting Licenses
	Carrying Amount
	September 30,		December 31,
	2019		2018
	(amounts in thousands)
Broadcasting licenses balance as of January 1,	$	2,516,625	$	2,649,959
Disposition of radio stations (See Notes 2, 13)		(17,940)		(24,901)
Acquisition of radio stations (See Note 2)		19,576		40,131
Loss on impairment		-		(148,564)
Ending period balance	$	2,518,261	$	2,516,625

The following table presents the changes in goodwill. Refer to Note 2, Business Combinations, for additional information.

	Goodwill Carrying Amount
	September 30,		December 31,
	2019		2018
	(amounts in thousands)
Goodwill balance before cumulative loss
on impairment as of January 1,	$	982,663	$	988,056
Accumulated loss on impairment as of January 1,		(443,194)		(126,056)
Goodwill beginning balance after cumulative loss
on impairment as of January 1,		539,469		862,000
Loss on impairment during year		-		(317,138)
Dispositions (See Note 2)		(4,862)		(8,623)
Acquisitions (See Note 2)		15,274		24,728
Measurement period adjustments to acquired goodwill		-		(21,498)
Ending period balance	$	549,881	$	539,469

Broadcasting Licenses Impairment Test

The Company historically performed its annual broadcasting license impairment test during the second quarter of each year by evaluating its broadcasting licenses for impairment at the market level using the Greenfield method.

During the second quarter of 2019, however, the Company voluntarily changed the date of its annual broadcasting license impairment test date from April 1 to December 1. The change was made to more closely align the impairment testing date with the Company’s long-term planning and forecasting process. The Company has determined this change in method of applying an accounting principle is preferable and does not result in adjustments to the Company’s financial statements when applied retrospectively.

In response to the changing of the annual broadcasting license impairment test date, during the three months ended June 30, 2019, the Company made an evaluation based on factors such as each market’s total market share and changes in operating cash flow margins, and concluded that it was more likely than not that the fair value of each market’s broadcasting licenses exceeded their carrying values at the time of the change in impairment test date. The change in the annual impairment testing date did not delay, accelerate or avoid an impairment charge.

If actual market conditions are less favorable than those projected by the industry or the Company, or if events occur or circumstances change that would reduce the fair value of the Company’s broadcasting licenses below the amount reflected in the balance sheet, the Company may be required to conduct an interim test and possibly recognize impairment charges, which may be material, in future periods.

There were no events or circumstances that indicated an interim review of broadcasting licenses was required.Goodwill Impairment Test

The Company historically performed its annual goodwill impairment test during the second quarter of each year by assessing goodwill for its single reporting unit on a consolidated basis.

During second quarter of 2019, however, the Company voluntarily changed the date of its annual goodwill impairment test date from April 1 to December 1. The change was made to more closely align the impairment testing date with the Company’s long-term planning and forecasting process. The Company has determined this change in method of applying an accounting principle is preferable and does not result in adjustments to the Company’s financial statements when applied retrospectively.

In response to the changing of the annual goodwill impairment test date, during the three months ended June 30, 2019, the Company made an evaluation based on factors such as changes in the Company’s long-term growth rate, changes in the Company’s operating cash flow margin, and trends in the Company’s market capitalization, and

concluded that it was more likely than not that the fair value of the Company’s goodwill exceeded its carrying value at the time of the change in impairment test date. The change in the annual impairment testing date did not delay, accelerate or avoid an impairment charge.

If actual market conditions are less favorable than those projected by the industry or the Company, or if events occur or circumstances change that would reduce the fair value of the Company’s goodwill below the amount reflected in the balance sheet, the Company may be required to conduct an interim test and possibly recognize impairment charges, which could be material, in future periods.

During the three months ended September 30, 2019, the Company considered key factors and circumstances that could have potentially indicated a need to conduct an interim impairment assessment. Such factors and circumstances included, but were not limited to: (i) forecasted financial information; (ii) discount rates; (iii) long-term growth rates; (iv) the Company’s stock price; and (v) analyst expectations. After giving consideration to all available evidence arising from these facts and circumstances, the Company concluded that it did not have a requirement to perform an interim impairment test for goodwill. However, if there were to be deterioration in the Company’s forecasted financial information, an increase in discount rates, a reduction in long-term growth rates, a sustained decline in the Company’s stock price, or a failure to achieve analyst expectations, these could all be potential indicators of an impairment charge, which could be material, in future periods.

There were no events or circumstances that indicated an interim review of goodwill was required.