Note 11 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

11.    Goodwill and Intangible Assets

During the nine-months ended September 30, 2020, we completed the Alaska Transactions that included the acquisition of goodwill, broadcast licenses and definite-lived intangible assets. See Note 3 “Acquisitions” for more information regarding this transaction. Also during the nine-months ended September 30, 2020, we completed the acquisition of other television station operations, including, in some cases, broadcast licenses that were not material. A summary of changes in our goodwill and other intangible assets, on a net basis, for the nine-months ended September 30, 2020 is as follows (in millions):

	Net Balance at		Acquisitions							Net Balance at
	December 31,		And							September 30,
	2019		Adjustments, Net		Impairments		Amortization			2020
Goodwill	$	1,446	$	2	$	-	$	-		$	1,448
Broadcast licenses		3,573		4		-		-			3,577
Definite lived intangible assets		460		9		-		(78	)		391
Total intangible assets net of accumulated amortization	$	5,479	$	15	$	-	$	(78	)	$	5,416

A summary of the changes in our goodwill, on a gross basis, for the nine-months ended September 30, 2020, is as follows (in millions):

	As of							As of
	December 31,			Net				September 30,
	2019			Additions		Impairments		2020
Goodwill, gross	$	1,545		$	2	$	-	$	1,547
Accumulated goodwill impairmant		(99	)		-		-		(99	)
Goodwill, net	$	1,446		$	2	$	-	$	1,448

As of September 30, 2020 and December 31, 2019, our intangible assets and related accumulated amortization consisted of the following (in millions):

	As of September 30, 2020							As of December 31, 2019
			Accumulated							Accumulated
	Gross		Amortization			Net		Gross		Amortization			Net
Intangible assets not currently subject to amortization:
Broadcast licenses	$	3,631	$	(54	)	$	3,577	$	3,627	$	(54	)	$	3,573
Goodwill		1,448		-			1,448		1,446		-			1,446
	$	5,079	$	(54	)	$	5,025	$	5,073	$	(54	)	$	5,019
Intangible assets subject to amortization:
Network affiliation agreements	$	62	$	(25	)	$	37	$	56	$	(17	)	$	39
Other definite lived intangible assets		618		(264	)		354		615		(194	)		421
	$	680	$	(289	)	$	391	$	671	$	(211	)	$	460
Total intangibles	$	5,759	$	(343	)	$	5,416	$	5,744	$	(265	)	$	5,479

Amortization expense for the nine-month periods ended September 30, 2020 and 2019 was $78 million and $86 million, respectively. Based on the intangible assets subject to amortization as of September 30, 2020, we expect that amortization expense for the remainder of 2020 would be approximately $26 million, and, for the succeeding five years, amortization expense will be approximately as follows: 2021, $100 million; 2022, $96 million; 2023, $90 million; 2024, $25 million; and 2025, $15 million. If and when acquisitions and dispositions occur in the future, actual amounts may vary materially from these estimates.