XML 42 R21.htm IDEA: XBRL DOCUMENT v3.24.0.1
GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS, AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS, AND OTHER INTANGIBLE ASSETS
5. GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS, 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. The change in the carrying amount of goodwill at December 31, 2023 and 2022 was as follows (in millions):
 Local mediaTennisOtherConsolidated
Balance at December 31, 2021$2,016 $61 $11 $2,088 
Balance at December 31, 2022$2,016 $61 $11 $2,088 
Disposition— — (6)(6)
Balance at December 31, 2023$2,016 $61 $5 $2,082 

Our accumulated goodwill impairment was $3,029 million as of both December 31, 2023 and 2022.
For our annual goodwill impairment tests related to our local media and other reporting units in 2023, our other reporting units in 2022, and our local media and other reporting units in 2021, we concluded that it was more-likely-than-not that goodwill was not impaired for the reporting units in which we performed a qualitative assessment. The qualitative factors 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. We did not have any indicators of impairment in any interim period in 2023 or 2022, and therefore did not perform interim impairment tests for goodwill during those periods.

For our annual goodwill impairment test related to our local media reporting unit in 2022, we elected to perform a quantitative assessment and concluded that its fair value substantially exceeded its carrying value. The key assumptions used to determine the fair value of our local media reporting unit consisted primarily of significant unobservable inputs (Level 3 fair value inputs), including discount rates, estimated cash flows, profit margins, and growth rates. The discount rate used to determine the fair value of our local media reporting unit 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 broadcasting company, and includes adjustments for market risk and company specific risk. Estimated cash flows are based upon internally developed estimates and growth rates and profit margins are based on market studies, industry knowledge, and historical performance.

As of December 31, 2023 and 2022, the carrying amount of our indefinite-lived intangible assets was as follows (in millions):
Local mediaTennisOtherConsolidated
Balance at December 31, 2021 (a)$123 $24 $3 $150 
Balance at December 31, 2022 (a) (b)$123 $24 $3 $150 
Balance at December 31, 2023 (a) (b)$123 $24 $3 $150 
(a)Our indefinite-lived intangible assets in our local media segment relate to broadcast licenses and our indefinite-lived intangible assets in our tennis segment and other relate to trade names.
(b)Approximately $14 million of indefinite-lived intangible assets relate to consolidated VIEs as of December 31, 2023 and 2022.
We did not have any indicators of impairment for our indefinite-lived intangible assets in 2023 or 2022, and therefore did not perform interim impairment tests during those periods. We performed our annual impairment tests for indefinite-lived intangibles in 2023 and 2022 and as a result of our qualitative assessments, we recorded no impairment.
The following table shows the gross carrying amount and accumulated amortization of definite-lived intangibles (in millions):
  As of December 31, 2023
 Gross Carrying ValueAccumulated AmortizationNet
Amortized intangible assets:
Customer relationships$1,098 $(729)$369 
   Network affiliation$1,435 $(1,032)$403 
   Other36 (29)7 
Total other definite-lived intangible assets (a)$1,471 $(1,061)$410 
Total definite-lived intangible assets$2,569 $(1,790)$779 
 
 As of December 31, 2022
 Gross Carrying ValueAccumulated AmortizationNet
Amortized intangible assets:
Customer relationships (b)$1,103 $(659)$444 
Network affiliation$1,436 $(948)$488 
   Other34 (20)14 
Total other definite-lived intangible assets (a) (b)$1,470 $(968)$502 
Total definite-lived intangible assets$2,573 $(1,627)$946 
(a)Approximately $33 million and $40 million of definite-lived intangible assets relate to consolidated VIEs as of December 31, 2023 and 2022, respectively.
(b)During 2022, we deconsolidated $3,330 million of customer relationships and $585 million of favorable sports contracts related to the Deconsolidation.
Definite-lived intangible assets and other assets subject to amortization are being amortized on a straight-line basis over their estimated useful lives. The definite-lived intangible assets are amortized over a weighted average useful life of 14 years for customer relationships and 15 years for network affiliations. The amortization expense of the definite-lived intangible and other assets for the years ended December 31, 2023, 2022, and 2021 was $166 million, $225 million, and $554 million, respectively, of which $4 million and $77 million as of December 31, 2022 and 2021, respectively, was associated with the amortization of favorable sports contracts prior to the Deconsolidation and is presented within media programming and production expenses in our statements of operations. 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, 2023, 2022, and 2021, as there were no indicators of impairment.

The following table shows the estimated annual amortization expense of the definite-lived intangible assets for the next five years and thereafter (in millions): 
2024$149 
2025143 
2026141 
2027127 
2028101 
2029 and thereafter118 
$779