Note 3. Goodwill and Intangible Assets

6 Months Ended

Jun. 24, 2012

Goodwill and Intangible Assets Disclosure [Text Block]

3. The Consolidated Condensed Statements of Operations include amortization expense from amortizing intangible assets of $.4 million and $1.4 million for the second quarters of 2012 and 2011, respectively, and $1.8 million and $2.7 million for the respective first six months of 2012 and 2011. Currently, intangibles amortization expense is projected to be approximately $2.8 million in total for 2012, decreasing to $1.8 million in 2013 and for each year through 2017.

The Company has recorded pretax cumulative impairment losses related to goodwill approximating $724 million through June 24, 2012. For impairment tests, the Company compares the carrying value of the reporting unit or asset tested to its estimated fair value. The estimated fair value is determined using a combination of the income approach and the market approach. The income approach utilizes the estimated discounted cash flows expected to be generated by the assets. The market approach employs comparable company information, and where available, recent transaction information for similar assets. The determination of fair value requires the use of significant judgment and estimates about assumptions that management believes are appropriate in the circumstances although it is reasonably possible that actual performance will differ from these assumptions. These assumptions include those relating to revenue growth, compensation levels, capital expenditures, discount rates and market trading multiples for comparable assets. The fair value measurements determined for purposes of performing the Company’s impairment tests are considered to be Level 3 under the fair value hierarchy because they required significant unobservable inputs to be developed using estimates and assumptions determined by the Company and reflecting those that a market participant would use.

The following table shows the gross carrying amount and accumulated amortization for intangible assets as of June 24, 2012 and December 25, 2011:

	December 25, 2011				Change		June 24, 2012
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Amortization Expense		Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets
(including network affiliation, advertiser and programming relationships):
Virginia/Tennessee	$	30,537	$	19,338	$	298	$	30,537	$	19,636
Florida		-		-		-		-		-
Mid-South		78,118		65,169		1,205		78,118		66,374
North Carolina		7,276		5,808		73		7,276		5,881
Ohio/Rhode Island		9,157		5,580		179		9,157		5,759
Advert. Serv. & Other		2,820		2,802		18		2,820		2,820
Total	$	127,908	$	98,697	$	1,773	$	127,908	$	100,470

Indefinite-lived intangible assets:
Goodwill:
Virginia/Tennessee	$	22,025					$	22,025
Florida		40,663						40,663
Mid-South		112,564						112,564
North Carolina		8,545						8,545
Ohio/Rhode Island		61,408						61,408
Advert. Serv. & Other		1,902						1,902
Total goodwill		247,107						247,107
FCC licenses
Virginia/Tennessee		20,000						20,000
Mid-South		93,694						93,694
North Carolina		24,000						24,000
Ohio/Rhode Island		36,004						36,004
Total FCC licenses		173,698						173,698
Other		114						114
Total	$	420,919					$	420,919

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details