XML 28 R10.htm IDEA: XBRL DOCUMENT
v3.10.0.1

PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended
--- | ---
Dec. 31, 2018
Property, Plant and Equipment [Abstract] |
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL | PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL Acquisitions During the fourth quarter of 2018, the Company acquired Stuff Media LLC and Jelli, Inc. for aggregate consideration of $120.3 million, of which $74.3 million was paid in cash in the fourth quarter of 2018 and $46.0 million, plus imputed interest, will be paid in cash in the fourth quarter of 2019. The assets acquired as part of these transactions consisted of $27.0 million in fixed assets and $35.2 million in intangible assets, consisting primarily of technology and content, along with $77.3 million in goodwill. Property, Plant and Equipment The Company’s property, plant and equipment consisted of the following classes of assets as of December 31, 2018 and 2017, respectively:
(In thousands) | December 31, |  | December 31,
| 2018 |  | 2017
Land, buildings and improvements | $ | 572,904 |  |  | $ | 562,702 |
Structures | 2,835,411 |  |  | 2,864,442 |
Towers, transmitters and studio equipment | 365,991 |  |  | 356,664 |
Furniture and other equipment | 793,756 |  |  | 707,163 |
Construction in progress | 116,839 |  |  | 74,810 |
| 4,684,901 |  |  | 4,565,781 |
Less: accumulated depreciation | 2,893,761 |  |  | 2,681,067 |
Property, plant and equipment, net | $ | 1,791,140 |  |  | $ | 1,884,714 |
The Company recognized an impairment of $2.6 million during the year ended December 31, 2017 in relation to advertising assets that were no longer usable in one country in the Company's International outdoor segment. Indefinite-lived Intangible Assets The Company’s indefinite-lived intangible assets consist of FCC broadcast licenses and billboard permits. FCC broadcast licenses are granted to radio stations for up to eight years under the Telecommunications Act of 1996 (the “Act”). The Act requires the FCC to renew a broadcast license if the FCC finds that the station has served the public interest, convenience and necessity, there have been no serious violations of either the Communications Act of 1934 or the FCC’s rules and regulations by the licensee, and there have been no other serious violations which taken together constitute a pattern of abuse. The licenses may be renewed indefinitely at little or no cost. The Company does not believe that the technology of wireless broadcasting will be replaced in the foreseeable future. The Company’s billboard permits are granted for the right to operate an advertising structure at the specified location as long as the structure is in compliance with the laws and regulations of each jurisdiction. The Company’s permits are located on owned land, leased land or land for which we have acquired permanent easements. In cases where the Company’s permits are located on leased land, the leases typically have initial terms of between 10 and 20 years and renew indefinitely, with rental payments generally escalating at an inflation-based index. If the Company loses its lease, the Company will typically obtain permission to relocate the permit or bank it with the municipality for future use. Due to significant differences in both business practices and regulations, billboards in the International outdoor segment are subject to long-term, finite contracts unlike the Company’s permits in the United States and Canada. Accordingly, there are no indefinite-lived intangible assets in the International outdoor segment. Annual Impairment Test to Indefinite-lived Intangible Assets The Company performs its annual impairment test on indefinite-lived intangible assets as of July 1 of each year. The impairment tests for indefinite-lived intangible assets consist of a comparison between the fair value of the indefinite-lived intangible asset at the market level with its carrying amount. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized equal to that excess. After an impairment loss is recognized, the adjusted carrying amount of the indefinite-lived asset is its new accounting basis. The fair value of the indefinite-lived asset is determined using the direct valuation method as prescribed in ASC 805-20-S99. Under the direct valuation method, the fair value of the indefinite-lived assets is calculated at the market level as prescribed by ASC 350-30-35. The Company engaged a third-party valuation firm, to assist it in the development of the assumptions and the Company’s determination of the fair value of its indefinite-lived intangible assets. The application of the direct valuation method attempts to isolate the income that is properly attributable to the indefinite-lived intangible asset alone (that is, apart from tangible and identified intangible assets and goodwill). It is based upon modeling a hypothetical “greenfield” build-up to a “normalized” enterprise that, by design, lacks inherent goodwill and whose only other assets have essentially been paid for (or added) as part of the build-up process. The Company forecasts revenue, expenses, and cash flows over a ten-year period for each of its markets in its application of the direct valuation method. The Company also calculates a “normalized” residual year which represents the perpetual cash flows of each market. The residual year cash flow was capitalized to arrive at the terminal value of the licenses in each market. Under the direct valuation method, it is assumed that rather than acquiring indefinite-lived intangible assets as part of a going concern business, the buyer hypothetically develops indefinite-lived intangible assets and builds a new operation with similar attributes from scratch. Thus, the buyer incurs start-up costs during the build-up phase which are normally associated with going concern value. Initial capital costs are deducted from the discounted cash flow model which results in value that is directly attributable to the indefinite-lived intangible assets. The key assumptions using the direct valuation method are market revenue growth rates, market share, profit margin, duration and profile of the build-up period, estimated start-up capital costs and losses incurred during the build-up period, the risk-adjusted discount rate and terminal values. This data is populated using industry normalized information representing an average FCC license or billboard permit within a market. During 2018, the Company recognized an impairment charge of $33.1 million related to FCC licenses in several markets and an impairment charge of $7.8 million related to billboard permits in one market. During 2017, the Company recognized an impairment charge of $6.0 million related to FCC licenses in one market. During 2016, the Company recognized an impairment charge of $0.7 million related to FCC licenses in one market. Other Intangible Assets Other intangible assets include definite-lived intangible assets and permanent easements. The Company’s definite-lived intangible assets primarily include transit and street furniture contracts, talent and representation contracts, customer and advertiser relationships, and site-leases and other contractual rights, all of which are amortized over the shorter of either the respective lives of the agreements or over the period of time the assets are expected to contribute directly or indirectly to the Company’s future cash flows. Permanent easements are indefinite-lived intangible assets which include certain rights to use real property not owned by the Company. The Company periodically reviews the appropriateness of the amortization periods related to its definite-lived intangible assets. These assets are recorded at cost. The following table presents the gross carrying amount and accumulated amortization for each major class of other intangible assets as of December 31, 2018 and 2017, respectively:
(In thousands) | December 31, 2018 |  | December 31, 2017
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Transit, street furniture and other outdoor contractual rights | $ | 528,185 |  |  | $ | (440,228 | ) |  | $ | 548,918 |  |  | $ | (440,284 | )
Customer / advertiser relationships | 1,249,128 |  |  | (1,208,056 | ) |  | 1,226,314 |  |  | (1,133,251 | )
Talent contracts | 164,933 |  |  | (148,578 | ) |  | 161,962 |  |  | (138,728 | )
Representation contracts | 77,508 |  |  | (70,829 | ) |  | 77,507 |  |  | (62,753 | )
Permanent easements | 163,317 |  |  | — |  |  | 162,920 |  |  | — |
Other | 382,897 |  |  | (244,993 | ) |  | 372,292 |  |  | (224,841 | )
Total | $ | 2,565,968 |  |  | $ | (2,112,684 | ) |  | $ | 2,549,913 |  |  | $ | (1,999,857 | )
Total amortization expense related to definite-lived intangible assets for the years ended December 31, 2018, 2017 and 2016 was $130.9 million, $197.2 million, and $222.6 million, respectively. As acquisitions and dispositions occur in the future, amortization expense may vary. The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets:
(In thousands) |
2019 | $ | 49,470 |
2020 | 43,291 |
2021 | 37,702 |
2022 | 32,675 |
2023 | 24,844 |
Annual Impairment Test to Goodwill The Company performs its annual impairment test on goodwill as of July 1 of each year. Each of the U.S. radio markets and outdoor advertising markets are components of the Company. The U.S. radio markets are aggregated into a single reporting unit and the U.S. outdoor advertising markets are aggregated into a single reporting unit for purposes of the goodwill impairment test using the guidance in ASC 350-20-55. The Company also determined that each country within its Americas outdoor segment and International outdoor segment constitutes a separate reporting unit. The goodwill impairment test is a two-step process. The first step, used to screen for potential impairment, compares the fair value of the reporting unit with its carrying amount, including goodwill. If applicable, the second step, used to measure the amount of the impairment loss, compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. Each of the Company’s reporting units is valued using a discounted cash flow model which requires estimating future cash flows expected to be generated from the reporting unit and discounting such cash flows to their present value using a risk-adjusted discount rate. Terminal values were also estimated and discounted to their present value. Assessing the recoverability of goodwill requires the Company to make estimates and assumptions about sales, operating margins, growth rates and discount rates based on its budgets, business plans, economic projections, anticipated future cash flows and marketplace data. There are inherent uncertainties related to these factors and management’s judgment in applying these factors. The Company recognized no goodwill impairment of during the year ended December 31, 2018. The Company recognized goodwill impairment of $1.6 million during the year ended December 31, 2017 related to one market in the Company's International outdoor segment. The Company recognized goodwill impairment of $7.3 million during the year ended December 31, 2016 related to one market in the Company's International outdoor segment. The following table presents the changes in the carrying amount of goodwill in each of the Company’s reportable segments:
(In thousands) | iHM |  | Americas Outdoor Advertising |  | International Outdoor Advertising |  | Other |  | Consolidated
Balance as of December 31, 2016 | $ | 3,288,481 |  |  | $ | 505,478 |  |  | $ | 190,785 |  |  | $ | 81,831 |  |  | $ | 4,066,575 |
Impairment | — |  |  | — |  |  | (1,591 | ) |  | — |  |  | (1,591 | )
Acquisitions | 2,442 |  |  | 2,252 |  |  | — |  |  | — |  |  | 4,694 |
Dispositions | (35,715 | ) |  | — |  |  | (1,817 | ) |  | — |  |  | (37,532 | )
Foreign currency | — |  |  | — |  |  | 18,847 |  |  | — |  |  | 18,847 |
Assets held for sale | — |  |  | 89 |  |  | — |  |  | — |  |  | 89 |
Balance as of December 31, 2017 | $ | 3,255,208 |  |  | $ | 507,819 |  |  | $ | 206,224 |  |  | $ | 81,831 |  |  | $ | 4,051,082 |
Acquisitions | 77,320 |  |  | — |  |  | — |  |  | — |  |  | 77,320 |
Dispositions | (1,606 | ) |  | — |  |  | — |  |  | — |  |  | (1,606 | )
Foreign currency | — |  |  | — |  |  | (8,040 | ) |  | — |  |  | (8,040 | )
Balance as of December 31, 2018 | $ | 3,330,922 |  |  | $ | 507,819 |  |  | $ | 198,184 |  |  | $ | 81,831 |  |  | $ | 4,118,756 |
The balance at December 31, 2016 is net of cumulative impairments of $3.5 billion, $2.6 billion, $270.5 million and $212.0 million in the Company’s iHM, Americas outdoor, International outdoor and Other segments, respectively.

X
- References No definition available. + Details
Name: | us-gaap_PropertyPlantAndEquipmentAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
Name: | us-gaap_PropertyPlantAndEquipmentDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration