INTANGIBLE ASSETS AND GOODWILL

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill 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 14, Assets Held For Sale, for additional information.


	Broadcasting Licenses Carrying Amount
	March 31, 2020		December 31, 2019
	(amounts in thousands)
Broadcasting licenses balance as of January 1,	$	2,508,121	$	2,516,625
Disposition of radio stations (See Note 2)	—		(17,940)
Acquisitions (See Note 2)	—		19,576

Assets held for sale (See Note 14)	—		(10,140)
Ending period balance	$	2,508,121	$	2,508,121

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


	Goodwill Carrying Amount
	March 31, 2020		December 31, 2019
	(amounts in thousands)
Goodwill balance before cumulative loss on impairment as of January 1,	$	1,024,467	$	982,663
Accumulated loss on impairment as of January 1,	(980,547)		(443,194)
Goodwill beginning balance after cumulative loss on impairment as of January 1,	43,920		539,469
Loss on impairment during year	—		(537,353)
Dispositions (See Note 2)	—		(4,862)
Acquisitions (See Note 2)	—		46,666
Measurement period adjustments to acquired goodwill (See Note 2)	(28)		—
Ending period balance	$	43,892	$	43,920

Broadcasting Licenses Impairment Test

During the fourth quarter of 2019, the Company completed its annual impairment test for broadcasting licenses and determined that the fair value of its broadcasting licenses was greater than the amount reflected in the condensed consolidated balance sheet for each of the Company's markets and, accordingly, no impairment was recorded.

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 condensed consolidated balance sheet, the Company may be required to conduct an interim test and possibly recognize impairment charges, which may be material, in future periods. The COVID-19 pandemic increases the uncertainty with respect to such market and economic conditions and, as such, increases the risk of future impairment.

There were no events or changes in circumstances since the previous annual impairment assessment conducted during the fourth quarter of 2019 that indicated an interim review of broadcasting licenses was required.

Goodwill Impairment Test

During the fourth quarter of 2019, the Company completed its annual impairment test for goodwill and determined that the fair value of the Company's goodwill attributable to the broadcast reporting unit was less than its carrying value. Accordingly, the Company recorded a $537.4 million impairment charge ($519.6 million, net of tax) on its goodwill during the fourth quarter of 2019. As a result of this impairment charge recorded in the fourth quarter of 2019, the Company has no goodwill attributable to the broadcast reporting unit. The remaining goodwill is entirely attributable to the podcasting reporting unit.

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 condensed consolidated balance sheet, the Company may be required to conduct an interim test and possibly recognize impairment charges, which could be material, in future periods. The COVID-19 pandemic increases the uncertainty with respect to such market and economic conditions and, as such, increases the risk of future impairment.

There were no events or changes in circumstances since the previous annual impairment assessment conducted during the fourth quarter of 2019 that indicated an interim review of goodwill was required.