(5)	Asset Exchange

On January 4, 2016, the Company completed an asset exchange with International Broadcasting Corp. under which the Company agreed to exchange certain assets used or useful in the operations of WIOA-FM, WIOC-FM, and WZET-FM in Puerto Rico for certain assets used or useful in the operations of WTCV (DT), WVEO (DT), and WVOZ (TV) in Puerto Rico previously owned and operated by International Broadcasting Corp.

The asset exchange was accounted for as a non-monetary exchange in accordance with ASC-845 Nonmonetary Transactions, as the Company did not acquire any significant processes to meet the definition of a business in accordance with ASC 805 Business Combinations. As the transaction involved significant monetary consideration, the Company recorded the exchange at fair value. The fair value of the assets received in the asset exchange was $2.9 million, as determined by an independent third party valuation. In addition, the Company paid $1.9 million in cash which we attribute to the value of the acquired television spectrum. Subsequently, we filed an application to participate and participated in the FCC’s Broadcast Television Spectrum Auction (the “Broadcast Incentive Auction”) with our Puerto Rico television stations to potentially generate cash proceeds. As a result of the fair value assessment of the assets exchanged, the difference in exchanged fair values of $1.8 million was deemed attributable to the acquired television spectrum and was recorded on the balance sheet under FCC broadcasting licenses. Based on the results of the Broadcast Incentive Auction we expect to realize the value of the acquired television spectrum. See our Annual Report on Form 10-K under the caption “Recent Developments—FCC Broadcast Incentive Auction” for additional detail regarding the results of the Broadcast Incentive Auction.

The assets of WIOA-FM, WIOC-FM, and WZET-FM were classified as held for exchange at the carrying amount of the assets as of December 31, 2015 and were subsequently exchanged in 2016.

A summary of assets held for exchange as of December 31, 2015 is as follows (in thousands):

Property and equipment, net	$	19
FCC broadcasting licenses		2,775
Assets held for exchange	$	2,794