(15)	Contingencies

Grupo Radio Centro LA, LLC Complaint

On February 11, 2016, SBS filed a multi-million dollar lawsuit against Grupo Radio Centro, LLC (“Grupo”) in the United States District Court for the Central District of California immediately after Grupo hired an on-air radio personality from SBS's KLAX-FM in Los Angeles, alleging: (i) intentional interference with contractual relations; (ii) inducement of breach of contract; and (iii) unfair competition in violation of Cal. Bus. & Prof. Code § 17200 et seq. (“California Lawsuit”). In December 2017, SBS settled its lawsuit against Grupo. The settlement resolved all pending legal proceedings between the parties and did not have a adverse effect on the business.

State Tax Assessment

The Company is periodically subject to state tax audits. Currently, the Company is under audit by a State tax authority, which is challenging the Company’s allocation of subsidiary capital and attributable liabilities, for the tax years from December 31, 2010 through 2013. The Company has accrued $0.6 million for the liability expected to be paid. The audit, related to franchise taxes, has been settled for a lower amount.

Local Tax Assessment

The Company received an audit assessment (the “Assessment”) wherein it was proposed that the Company underpaid a local tax for the tax periods between June 1, 2005 and May 31, 2015 totaling $1,439,452 in underpaid tax, applicable interest and penalties. The Company disagrees with the assessment and related calculations but is developing a settlement strategy to discuss and pursue with the taxing jurisdiction with the hope of avoiding a lengthy litigation process. While we are uncertain as to whether the jurisdiction will accept this offer, an accrual of $391,000, based upon our current best estimate of probable loss, was charged to operations in the second quarter of 2016. However, if the settlement offer is not accepted by the jurisdiction, the amount of the ultimate loss to the Company, if any, may equal the entire amount of the Assessment sought by the taxing jurisdiction.