The Company performs an annual fair value-based impairment test of goodwill and intangible assets with indefinite lives, primarily comprised of FCC licenses, during the fourth quarter and also between annual tests if an event occurs or if circumstances change that would more likely than not reduce the fair value of a reporting unit or an indefinite-lived intangible asset below its carrying value. Goodwill is tested for impairment at the reporting unit level, which is one level below or the same as an operating segment. The Company early adopted the FASB's amended guidance on goodwill impairment testing for its annual impairment test performed in the fourth quarter of 2011. Under this guidance, the Company may choose to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If based on this assessment the Company determines it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. For 2011, the Company performed this qualitative assessment for six reporting units that each had an estimated fair value for the 2010 annual impairment test that was in excess of its carrying value by 20% or more. For each reporting unit, the Company weighed the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors. The reporting unit specific factors that were considered included the results of the most recent impairment tests, as well as financial performance and changes to the reporting units' carrying amounts since the most recent impairment tests. For each industry in which the reporting units operate, the Company considered growth projections from independent sources and significant developments or transactions within the industry during 2011, where applicable. The Company concluded that each of the reporting unit specific and industry factors had either a positive or neutral impact on the fair value of each of the reporting units. The Company also determined that macroeconomic factors did not have a significant impact on the discount rates and growth rates used for the 2010 annual impairment tests. Based on the qualitative assessment, the Company concluded that for these six reporting units, performing the two-step impairment test was unnecessary and no impairment charge was required for 2011.

The Company performed the first step of the goodwill impairment test for the remaining three reporting units. The first step of the goodwill impairment test examines whether the carrying value of a reporting unit exceeds its fair value. If the carrying value of the reporting unit exceeds its fair value, the second step of the test requires the Company to then compare the implied fair value of that reporting unit's goodwill with the carrying value of its goodwill to determine the amount of impairment charge, if any.

The estimated fair value of each reporting unit for which step one of the impairment test is performed is computed based upon the present value of future cash flows (“Discounted Cash Flow Method”) and both the traded and transaction values of comparable businesses (“Market Comparable Method”). The Discounted Cash Flow Method and Market Comparable Method resulted in substantially equal fair values. The Discounted Cash Flow Method includes the Company's assumptions for growth rates, operating margins and capital expenditures for the projection period plus the residual value of the business at the end of the projection period. The estimated growth rates, operating margins and capital expenditures for the projection period are based on the Company's internal forecasts of future performance as well as historical trends. The residual value is estimated based on a perpetual nominal growth rate, which is based on projected long-range inflation and long-term industry projections, and for 2011 was between 2.0% and 3.0%. The discount rates, which for 2011 ranged from 8.5% to 10.0%, are determined based on the average of the weighted average cost of capital of comparable entities. Based on the 2011 annual impairment test, for each of the three reporting units for which the Company performed the first step of the impairment test, the estimated fair values exceeded the respective carrying values and therefore no impairment charge was required.

FCC licenses are tested for impairment at the geographic market level by comparing the fair value of the intangible asset by market with its carrying value. The Company considers each geographic market, which is comprised of all of the Company's radio or television stations within that geographic market, to be a single unit of accounting because the FCC licenses at this level represent their highest and best use. The estimated fair value of each FCC license is computed using the Greenfield Discounted Cash Flow Method (''Greenfield Method''), which attempts to isolate the income that is attributable to the license alone. The Greenfield Method is based upon modeling a hypothetical start-up station and building it up to a normalized operation that, by design, lacks inherent goodwill and whose other assets have essentially been added as part of the build-up process. The Greenfield Method adds the present value of the estimated annual cash flows of the start-up station over a projection period to the residual value at the end of the projection period. The annual cash flows over the projection period include assumptions for overall advertising revenues in the relevant geographic market, the start-up station's operating costs and capital expenditures, and a three-year build-up period for the start-up station to reach a normalized state of operations, which reflects the point at which it achieves an average market share. In order to estimate the revenues of a start-up station, the total market advertising revenue in the subject market is estimated based on recent industry projections. Operating costs and capital expenditures are similarly estimated based on industry-average data. The residual value is calculated using a perpetual nominal growth rate, which is based on projected long-range inflation in the U.S. and long-term industry projections. The discount rate is determined based on the average of the weighted average cost of capital of comparable entities in the broadcast industry. For each television station and radio station, the discount rates used for 2011 were 8.0% and 8.5%, respectively, and the perpetual nominal growth rates used were 2.5% and 2.0%, respectively.

Based on the 2011 annual impairment test of the Company's indefinite-lived intangible assets, the estimated fair values exceeded the respective carrying values and therefore no impairment charge was required.

Based on the 2010 annual impairment test, the estimated fair value of each of the Company's reporting units and indefinite-lived intangible assets exceeded the respective carrying values and therefore no impairment charge was required.

During 2009, as a result of the Company's annual impairment test of FCC licenses, the Company recorded a pre-tax non-cash impairment charge of $178 million at the Local Broadcasting segment to reduce the carrying value of FCC licenses in certain radio markets. This impairment resulted from reductions in projections for advertising revenues due to a weakened radio advertising marketplace.

Also in 2009, in connection with the sale of certain of its radio stations, the Company recorded a pre-tax non-cash impairment charge of $32 million to reduce the carrying value of FCC licenses by $21 million and the allocated goodwill by $11 million.

For the years ended December 31, 2011 and 2010, the changes in the book value of goodwill by segment were as follows:

	Balance at								Balance at
	December 31, 2010		Acquisitions ^(a)		Dispositions		Other ^(b)		December 31, 2011

Entertainment:
Goodwill	$	9,352	$	107	$	—	$	(3)	$	9,456
Accumulated impairment losses		(6,294)		—		—		—		(6,294)
Goodwill, net of impairment		3,058		107		—		(3)		3,162

Cable Networks:
Goodwill		480		—		—		—		480
Accumulated impairment losses		—		—		—		—		—
Goodwill, net of impairment		480		—		—		—		480

Publishing:
Goodwill		407		—		—		—		407
Accumulated impairment losses		—		—		—		—		—
Goodwill, net of impairment		407		—		—		—		407

Local Broadcasting:
Goodwill		23,466		—		—		—		23,466
Accumulated impairment losses		(20,816)		—		—		—		(20,816)
Goodwill, net of impairment		2,650		—		—		—		2,650

Outdoor:
Goodwill		11,818		—		—		(8)		11,810
Accumulated impairment losses		(9,889)		—		—		—		(9,889)
Goodwill, net of impairment		1,929		—		—		(8)		1,921

Total:
Goodwill		45,523		107		—		(11)		45,619
Accumulated impairment losses		(36,999)		—		—		—		(36,999)
Goodwill, net of impairment	$	8,524	$	107	$	—	$	(11)	$	8,620

	Balance at								Balance at
	December 31, 2009		Acquisitions		Dispositions		Other ^(a)		December 31, 2010

Entertainment:
Goodwill	$	9,392	$	—	$	—	$	(40)	$	9,352
Accumulated impairment losses		(6,294)		—		—		—		(6,294)
Goodwill, net of impairment		3,098		—		—		(40)		3,058

Cable Networks:
Goodwill		480		—		—		—		480
Accumulated impairment losses		—		—		—		—		—
Goodwill, net of impairment		480		—		—		—		480

Publishing:
Goodwill		416		—		—		(9)		407
Accumulated impairment losses		—		—		—		—		—
Goodwill, net of impairment		416		—		—		(9)		407

Local Broadcasting:
Goodwill		23,593		4		(76)		(55)		23,466
Accumulated impairment losses		(20,887)		—		71		—		(20,816)
Goodwill, net of impairment		2,706		4		(5)		(55)		2,650

Outdoor:
Goodwill		11,871		—		(16)		(37)		11,818
Accumulated impairment losses		(9,903)		—		14		—		(9,889)
Goodwill, net of impairment		1,968		—		(2)		(37)		1,929

Total:
Goodwill		45,752		4		(92)		(141)		45,523
Accumulated impairment losses		(37,084)		—		85		—		(36,999)
Goodwill, net of impairment	$	8,668	$	4	$	(7)	$	(141)	$	8,524

(a) Primarily reflects the establishment of deferred tax assets associated with liabilities assumed from prior acquisitions and foreign currency translation adjustments.

				Accumulated
At December 31, 2011			Gross	Amortization			Net
Intangible assets subject to amortization:
Leasehold agreements		$	882	$	(590)	$	292
Franchise agreements			487		(292)		195
Other intangible assets			376		(244)		132
	Total intangible assets subject to amortization		1,745		(1,126)		619
FCC licenses			5,738		—		5,738
Trade names			169		—		169
	Total intangible assets	$	7,652	$	(1,126)	$	6,526


				Accumulated
At December 31, 2010			Gross	Amortization			Net
Intangible assets subject to amortization:
Leasehold agreements		$	895	$	(562)	$	333
Franchise agreements			491		(272)		219
Other intangible assets			375		(210)		165
	Total intangible assets subject to amortization		1,761		(1,044)		717
FCC licenses			5,738		—		5,738
Trade names			169		—		169
	Total intangible assets	$	7,668	$	(1,044)	$	6,624

Amortization expense relating to intangible assets was $122 million (2011), $130 million (2010) and $134 million (2009). The Company expects its aggregate annual amortization expense for existing intangible assets subject to amortization for each of the years, 2012 through 2016, to be as follows: