Note 6 - Intangible Assets and Impairment

12 Months Ended

Dec. 31, 2013

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

Note 6:   Intangible Assets and Impairment

The Company reviews the carrying values of both goodwill and FCC broadcast licenses in the fourth quarter each year, or earlier if events indicate an impairment may have arisen, utilizing qualitative analyses and discounted cash flow models and market-based models, where necessary. When evaluating goodwill and other intangible assets for potential impairment, the Company first considers qualitative factors including but not limited to: current macroeconomic conditions, the Company’s actual performance versus budgeted performance, key management changes and selling prices for broadcast companies. When a quantitative test is deemed necessary, 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 the income approach. The income approach utilizes the estimated discounted cash flows expected to be generated by the assets. The Company considers but does not use a market approach to value its reporting units and broadcast licenses, however, market multiples are evaluated to assess the reasonableness of the income approach. For the years ended December 31, 2013, and 2012, no impairment charges were recorded.

In 2011, the Company announced that Cox Reps, the nation’s largest TV rep firm comprised of TeleRep, HRP, MMT and the digital, multi-platform sales firm Cox Cross Media, would represent it for national sales. As a result of this decision, the Company’s national sales rep firm, Adam Young, Inc. ceased operations during 2011. This resulted in the impairment of related intangible assets totaling approximately $1 million, and the recognition of severance and shutdown costs totaling $1.8 million which were recorded within selling, general and administrative expenses within the statement of comprehensive income in the year ended December 31, 2011.

Definite and indefinite lived intangible assets were as follows as of December 31, 2013, and 2012:

	December 31, 2012							Change					December 31, 2013
(In thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Business Combinations		Amortization Expense			Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets:
Network affiliations	$	28,600	$	(3,435	)	$	25,165	$	156,400	$	(3,213	)	$	185,000	$	(6,648	)	$	178,352
Advertiser relationships and other		19,700		(11,812	)		7,888		59,780		(6,378	)		79,480		(18,190	)		61,290
Total	$	48,300	$	(15,247	)	$	33,053	$	216,180	$	(9,591	)	$	264,480	$	(24,838	)	$	239,642
Indefinite-lived intangible assets:
Broadcast licenses	$	206,200				$	206,200	$	367,100				$	573,300				$	573,300
Goodwill		51,886					51,886		489,589					541,475					541,475
Total	$	258,086				$	258,086	$	856,689				$	1,114,775				$	1,114,775

The weighted-average useful life for network affiliations is approximately 16 years and the weighted-average useful life for advertiser relationships and other is 6 years. Aggregate amortization expense for the years ended December 31, 2013, 2012 and 2011 was $9.6 million, $6.1 million and $6.1 million, respectively. Amortization expense is expected to be $23 million in 2014, $20.6 million in 2015, $20.5 million in each of 2016 and 2017 and $20.2 million in 2018.