Goodwill and other intangible assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The following table displays goodwill, indefinite-lived intangible assets, and amortizable intangible assets at December 31, 2016 and December 31, 2015.



In thousands of dollars
	Gross		Accumulated Amortization			Net
Dec. 31, 2016
Goodwill	$	4,067,529	$	—		$	4,067,529
Indefinite-lived intangibles:
Television station FCC licenses	1,191,950		—			1,191,950
Trade names	925,171		—			925,171
Amortizable intangible assets:
Customer relationships	929,852		(210,691		)	719,161
Other	290,875		(113,725		)	177,150
Total	$	7,405,377	$	(324,416	)	$	7,080,961
Dec. 31, 2015
Goodwill	$	3,919,726	$	—		$	3,919,726
Indefinite-lived intangibles:
Television station FCC licenses	1,191,950		—			1,191,950
Trade names	925,019		—			925,019
Amortizable intangible assets:
Customer relationships	903,652		(145,398		)	758,254
Other	265,148		(75,264		)	189,884
Total	$	7,205,495	$	(220,662	)	$	6,984,833

Customer relationships, which include subscriber lists and advertiser relationships, are amortized on a straight-line basis over their useful lives. Other intangibles primarily include retransmission agreements, network affiliations, developed technology, and patents and are amortized on a straight-line basis over their useful lives.

In connection with the purchase accounting for the Aurico transaction, we recorded intangible assets of $14.1 million, related to technology, customer relationships and trade name, which will be amortized over a weighted-average period of 8 years.

In connection with the purchase accounting for the DealerRater acquisition, we recorded customer relationships of $24.7 million and other intangible assets of $14.1 million, related to trade name, technology and content library which will be amortized over a weighted average period of 10 years.

In connection with our preliminary purchase accounting related to the Workterra acquisition, we recorded other intangible assets of $13.7 million, related to technology, and customer relationships which will be amortized over a weighted average period of 8 years.

The following table shows the projected annual amortization expense, as of December 31, 2016, related to our existing amortizable intangible assets:



In thousands of dollars
2017	$	114,557
2018	$	111,789
2019	$	107,234
2020	$	101,906
2021	$	90,498

The following table shows the changes from 2015 to 2016 in the carrying amount of goodwill by reportable segment.



In thousands of dollars
	Media		Digital			Total
Goodwill
Gross balance at Dec. 28, 2014	$	2,578,601	$	1,503,141		$	4,081,742
Accumulated impairment losses	—		(166,971		)	(166,971		)
Net balance at Dec. 28, 2014	$	2,578,601	$	1,336,170		$	3,914,771
Acquisitions & adjustments	817		25,667			26,484
Dispositions	—		(252		)	(252		)
Impairment	—		(8,000		)	(8,000		)
Foreign currency exchange rate changes	—		(13,277		)	(13,277		)
Balance at Dec. 31, 2015	$	2,579,418	$	1,340,308		$	3,919,726
Gross balance at Dec. 31, 2015	2,579,418		1,515,279			4,094,697
Accumulated impairment losses	—		(174,971		)	(174,971		)
Net balance at Dec. 31, 2015	$	2,579,418	$	1,340,308		$	3,919,726
Acquisitions & adjustments	—		176,775			176,775
Impairment	—		(15,218		)	(15,218		)
Foreign currency exchange rate changes	—		(13,754		)	(13,754		)
Balance at Dec. 31, 2016	$	2,579,418	$	1,488,111		$	4,067,529
Gross balance at Dec. 31, 2016	2,579,418		1,678,300			4,257,718
Accumulated impairment losses	—		(190,189		)	(190,189		)
Net balance at Dec. 31, 2016	$	2,579,418	$	1,488,111		$	4,067,529

In the third quarter of 2016, based on continued adverse business trends and changes in our strategic plans, we concluded it was more likely than not that the fair value of a small reporting unit within our Digital Segment was lower than its carrying value, and accordingly we performed an interim goodwill impairment test for this reporting unit. As a result of this test, we recorded a non-cash goodwill impairment charge of $15.2 million in the third quarter of 2016, representing the full amount of goodwill associated with this reporting unit. This impairment charge is recorded within asset impairment and facility consolidation charges in the accompanying Consolidated Statements of Income.

- 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.

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