INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Jun. 30, 2021

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
	June 30, 2021		December 31, 2020
	(amounts in thousands)
Broadcasting licenses balance as of January 1,	$	2,229,016	$	2,508,121
Disposition of radio stations (See Note 2)	—		(432)
Acquisitions	23,233		—
Loss on impairment	—		(261,929)
Assets held for sale (See Note 14)	—		(16,744)
Ending period balance	$	2,252,249	$	2,229,016

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


	Goodwill Carrying Amount
	June 30, 2021		December 31, 2020
	(amounts in thousands)
Goodwill balance before cumulative loss on impairment as of January 1,	$	1,042,762	$	1,024,467
Accumulated loss on impairment as of January 1,	(980,547)		(980,547)
Goodwill beginning balance after cumulative loss on impairment as of January 1,	62,215		43,920


Acquisitions (See Note 2)	19,579		18,323
Measurement period adjustments to acquired goodwill (See Note 2)	32		(28)
Ending period balance	$	81,826	$	62,215

Broadcasting Licenses Impairment Test

During the second and third quarters of 2020, the Company conducted interim impairment assessments on its broadcasting licenses. The interim impairment assessments indicated that the fair value of the Company's broadcasting licenses was less than their respective carrying amounts for certain of its markets. Accordingly, the Company recorded an impairment loss of $4.1 million ($3.0 million, net of tax) and $11.8 million ($8.7 million, net of tax) during the second and third quarters of 2020, respectively.

During the fourth quarter of 2020, the Company completed its annual impairment test for broadcasting licenses and determined that the fair value of its broadcasting licenses was less than their respective carrying amounts for certain of its markets. Accordingly, the Company recorded an impairment loss of $246.0 million ($180.4 million, net of tax).

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 2020 that indicated an interim review of broadcasting licenses was required.

Goodwill Impairment Test

In November 2020, the Company completed the QLGG Acquisition. QLGG represents a separate division one level beneath the single operating segment and its own reporting unit. For the goodwill acquired in the QLGG Acquisition, similar valuation techniques that were applied in the valuation of goodwill under purchase price accounting were also used in the annual impairment testing process. The valuation of the acquired goodwill approximated fair value.

The acquired goodwill attributable to the Company's podcast reporting unit, primarily consisting of the acquired goodwill in the 2019 acquisition of Cadence13, Inc. ("Cadence13") (the "Cadence13 Acquisition") and the 2019 acquisition of Pineapple Street Media ("Pineapple") (the "Pineapple Acquisition"), was subject to a qualitative annual impairment test conducted in the fourth quarter of 2020. As a result of the qualitative impairment test, the Company determined it was more likely than not that the fair value of the goodwill attributable to Cadence13 and Pineapple exceeded their respective carrying amounts. Accordingly, no quantitative impairment assessment was conducted and no impairment was recorded.

In March 2021, the Company completed the Podcorn Acquisition. For the goodwill acquired in the Podcorn Acquisition, similar valuation techniques that were applied in the valuation of goodwill under purchase price accounting were also used in the Company's impairment testing process. The valuation of the acquired goodwill approximated fair value.

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 2020 that indicated an interim review of goodwill was required.