Goodwill and other intangible assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6 — Goodwill & Intangible Assets

Goodwill and intangible assets consisted of the following:



	March 31, 2020
	Gross carrying amount		Accumulated amortization		Net carrying amount
Amortized intangible assets:
Advertiser relationships	$	532,266	$	88,448	$	443,818
Other customer relationships	109,333		17,454		91,879
Subscriber relationships	259,391		52,172		207,219
Other intangible assets	76,552		15,210		61,342
Total	$	977,542	$	173,284	$	804,258
Non-amortized intangible assets:
Goodwill	$	909,741
Mastheads	177,708
Total	$	1,087,449

	December 31, 2019
	Gross carrying amount		Accumulated amortization		Net carrying amount
Amortized intangible assets:
Advertiser relationships	$	534,161	$	75,363	$	458,798
Other customer relationships	109,674		14,303		95,371
Subscriber relationships	259,391		44,878		214,513
Other intangible assets	76,552		11,229		65,323
Total	$	979,778	$	145,773	$	834,005
Non-amortized intangible assets:
Goodwill	$	914,331
Mastheads	178,559
Total	$	1,092,890

The Company’s annual impairment assessment is made on the last day of its fiscal second quarter. In addition to the annual impairment test, the Company is required to regularly assess whether a triggering event has occurred which would require interim impairment testing.

As of March 31, 2020, the Company performed a review of potential impairment indicators. In connection with its review, the Company noted that the market capitalization of the Company declined significantly during the three months ended March 31, 2020 and there was widespread stock-market volatility, resulting from the COVID-19 pandemic. Although the Company expects its near-term operating results to be negatively impacted as a result of the COVID-19 pandemic, its overall financial forecasts have not changed materially from the financial forecasts used in the Company’s year-end impairment assessment. As a result, the Company concluded that it was not more likely than not that the fair value of our reporting units is less than carrying value. The Company reached a similar conclusion for its indefinite-lived intangible assets, which consist of mastheads.

The Company considered the current and expected future economic and market conditions and the impact on the fair value of each of the reporting units. The most significant assumptions utilized in the determination of the estimated fair values include revenue and EBITDA projections, discount rates and long-term growth rates. The long-term growth rates are dependent on overall market growth rates, the competitive environment, inflation and relative currency exchange rates and could be adversely impacted by a sustained decrease in any of these measures. The discount rate, which is consistent with a weighted average cost of capital that is likely to be expected by a market participant, is based upon industry required rates of return, including consideration of both debt and equity components of the capital structure. It may be impacted by adverse changes in the macroeconomic environment and volatility in the equity and debt markets.

While we have concluded that it is not more likely than not that the fair value of our reporting units and mastheads is less than the respective carrying values as of March 31, 2020, the severity and length of the pandemic, the duration and extent of the

mitigation measures and governmental actions designed to combat the pandemic, as well as the changes in customer behavior as a result of the pandemic, all of which are highly uncertain and difficult to predict at the current time, could negatively impact the Company’s future assessment of its results of operations and the underlying assumptions utilized in the determination of the estimated fair values of the reporting units and related mastheads.