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GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS:
GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS:
 
Goodwill, which arises from the purchase price exceeding the assigned value of the net assets of an acquired business, represents the value attributable to unidentifiable intangible elements being acquired. Goodwill totaled $1,931.1 million and $1,964.6 million at December 31, 2015 and 2014, respectively.  The change in the carrying amount of goodwill related to continuing operations was as follows (in thousands):
 
 
Broadcast
 
Other
 
Consolidated
Balance at December 31, 2013
 

 
 

 
 

Goodwill
$
1,790,167

 
$
3,488

 
$
1,793,655

Accumulated impairment losses
(413,573
)
 
—

 
(413,573
)
 
1,376,594

 
3,488

 
1,380,082

Acquisition of television stations (a)
701,854

 
—

 
701,854

Sale of broadcast assets (d)
(26,731
)
 
—

 
(26,731
)
Deconsolidation of variable interest entities (b)
(21,357
)
 
—

 
(21,357
)
Measurement period adjustments related to 2013 acquisitions
(66,320
)
 
—

 
(66,320
)
Assets held for sale (e)
—

 
(2,975
)
 
(2,975
)
Balance at December 31, 2014 (c)
 

 
 

 
 

Goodwill (a)
2,377,613

 
513

 
2,378,126

Accumulated impairment losses
(413,573
)
 
—

 
(413,573
)
 
1,964,040

 
513

 
1,964,553

Acquisition of television stations (a)
5,802

 
—

 
5,802

Measurement period adjustments related to 2014 acquisitions
(42,237
)
 
—

 
(42,237
)
Change in assets held for sale (e)
—

 
2,975

 
2,975

Balance at December 31, 2015 (c)
 

 
 

 
 

Goodwill
2,341,178

 
3,488

 
2,344,666

Accumulated impairment losses
(413,573
)
 
—

 
(413,573
)
 
$
1,927,605

 
$
3,488

 
$
1,931,093

_______________________________________________________

(a)
In 2015 and 2014, we acquired goodwill as a result of acquisitions as discussed in Note 2. Acquisitions.
(b)
In 2014, we deconsolidated certain variable interest entities and the amounts relate to WYZZ in Peoria, IL and WTAT in Charleston, SC, as discussed in Variable Interest Entities within Note 1. Nature of Operations and Summary of Significant Accounting Policies.
(c)
Approximately $0.8 million of goodwill relates to consolidated VIEs as of December 31, 2015 and 2014.
(d)
Amounts relate to the 2014 sale of WTTA in Tampa, FL and KXRM/KXTU in Colorado Springs, CO.  See Note 3. Disposition of Assets and Discontinued Operations for further discussion on the sale of these stations.
(e)
We concluded that the assets of Triangle were no longer classified as assets held for sale. See Note 3. Disposition of Assets and Discontinued Operations for further discussion.
 
We did not have any indicators of impairment in any interim period in 2015, 2014, or 2013, and therefore did not perform interim impairment tests for goodwill during those periods. We performed our annual impairment tests for goodwill in the fourth quarter of 2015 and 2014 and as a result of our qualitative assessment we concluded based on our qualitative assessment of goodwill that it was more likely than not that the fair values of the reporting units would sufficiently exceed their carrying values and it was unnecessary to perform the quantitative two-step method.
 
The qualitative factors for our reporting units reviewed during our annual assessments, indicated stable or improving margins and favorable or stable forecasted economic conditions including stable discount rates and comparable or improving business multiples. Additionally, the results of prior quantitative assessments supported significant excess fair value over carrying value of our reporting units.
 
As of December 31, 2015 and 2014, the carrying amount of our broadcast licenses related to continuing operations was as follows (in thousands):
 
 
2015
 
2014
Beginning balance
135,075

 
101,029

Acquisition of television stations (a)
992

 
18,027

Sale of broadcast assets
(175
)
 
(45
)
Impairment charge
—

 
(3,240
)
Measurement period adjustments related to 2014 acquisitions
(3,427
)
 
19,355

Deconsolidation of variable interest entities (b)
—

 
(51
)
Ending balance (c)
132,465

 
135,075

_______________________________________________________

(a)
In 2015 and 2014, we acquired broadcast licenses as a result of acquisitions as discussed in Note 2. Acquisitions.
(b)
In 2014, we deconsolidated certain variable interest entities and the amounts relate to WYZZ in Peoria, IL and WTAT in Charleston, SC, as discussed in Variable Interest Entities within Note 1. Nature of Operations and Summary of Significant Accounting Policies.
(c)
Approximately $17.6 million and $16.9 million of broadcast licenses relate to consolidated VIEs as of December 31, 2015 and 2014, respectively.
 
We did not have any indicators of impairment for broadcast licenses in any interim period in 2015, and therefore did not perform interim impairment tests during those periods. We performed our annual impairment tests for indefinite-lived intangibles in the fourth quarter of 2015 and as a result of our qualitative and quantitative assessments we recorded no impairment. We performed our annual impairment tests for indefinite-lived intangibles in the fourth quarter of 2014 and as a result of our qualitative and/or quantitative assessments we recorded $3.2 million in impairment, included with amortization of $113.4 million within the consolidated statement of operations, related to broadcast licenses with a carrying value of $21.1 million, compared to their estimated fair value of $17.9 million, as a result of a decrease in the projected future market revenues related to our radio broadcast licenses in Seattle, WA.
 
The key assumptions used to determine the fair value of our broadcast licenses consisted primarily of significant unobservable inputs (Level 3 fair value inputs), including discount rates, estimated market revenues, normalized market share, normalized profit margin, and estimated start-up costs. The qualitative factors for our broadcast licenses indicated an increase in market revenues, stable market shares and stable cost factors.   The revenue, expense and growth rates used in determining the fair value of our broadcast licenses remained constant or increased slightly from 2014 to 2015.  The growth rates are based on market studies, industry knowledge and historical performance.  The discount rates used to determine the fair value of our broadcast licenses did not change significantly over the last three years.  The discount rate is based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television station, and includes adjustments for market risk and company specific risk.
 
The following table shows the gross carrying amount and accumulated amortization of definite-lived intangibles related to continuing operations (in thousands):
 
 As of December 31, 2015
 
Gross Carrying Value
 
Accumulated Amortization
 
Net
Amortized intangible assets:
 
 
 
 
 
   Network affiliation (a)
1,378,425

 
(343,729
)
 
1,034,696

   Customer Relationships (a)
806,727

 
(225,176
)
 
581,551

   Other (b)
193,594

 
(58,271
)
 
135,323

Total
2,378,746

 
(627,176
)
 
1,751,570

 
 
As of December 31, 2014
 
Gross Carrying Value
 
Accumulated Amortization
 
Net
Amortized intangible assets:
 
 
 
 
 
   Network affiliation (a)
1,396,792

 
(257,526
)
 
1,139,266

   Customer Relationships (a)
749,292

 
(177,453
)
 
571,839

   Other (b)
174,442

 
(67,284
)
 
107,158

Total
2,320,526

 
(502,263
)
 
1,818,263

_______________________________________________________

(a)
Changes between the gross carrying value from December 31, 2014 to December 31, 2015, relate to the acquisition of stations in 2015 and measurement period adjustments related to 2014 acquisitions as discussed in Note 2. Acquisitions.
(b)
The increase in other intangible assets is primarily due to the purchase of additional alarm monitoring contracts of $39.2 million, partially offset by measurement period adjustments as discussed in Note 2. Acquisitions.
 
Definite-lived intangible assets and other assets subject to amortization are being amortized on a straight-line basis over their estimated useful lives which generally range from 5 to 25 years.  The total weighted average useful life of all definite-lived intangible assets and other assets subject to amortization acquired as a result of the acquisitions discussed in Note 2. Acquisitions is 14 years.  The amortization expense of the definite-lived intangible and other assets for the years ended December 31, 2015, 2014 and 2013 was $161.5 million, $125.5 million and $70.8 million, respectively.  We analyze specific definite-lived intangibles for impairment when events occur that may impact their value in accordance with the respective accounting guidance for long-lived assets.  There were no impairment charges recorded for the years ended December 31, 2015, 2014 and 2013.
 
The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years (in thousands):
 
For the year ended December 31, 2016
152,011

For the year ended December 31, 2017
149,683

For the year ended December 31, 2018
148,350

For the year ended December 31, 2019
148,201

For the year ended December 31, 2020
147,890

Thereafter
1,005,435

 
1,751,570