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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill by business segment was as follows:
(in thousands)
 
Local Media
 
National Media
 
Total
 
 
 
 
 
 
 
Gross balance as of December 31, 2014
 
$
292,693

 
$
28,982

 
$
321,675

Accumulated impairment losses
 
(215,414
)
 
—

 
(215,414
)
Net balance as of December 31, 2014
 
77,279

 
28,982

 
106,261

Journal acquisition
 
415,440

 
—

 
415,440

Midroll acquisition
 
—

 
45,586

 
45,586

Impairment charge
 
(1,500
)
 
(21,000
)
 
(22,500
)
Balance as of December 31, 2015
 
$
491,219

 
$
53,568

 
$
544,787

 
 


 


 


Gross balance as of December 31, 2015
 
$
708,133

 
$
74,568

 
$
782,701

Accumulated impairment losses
 
(216,914
)
 
(21,000
)
 
(237,914
)
Net balance as of December 31, 2015
 
491,219

 
53,568

 
544,787

Cracked acquisition
 
—

 
29,403

 
29,403

Stitcher acquisition
 
—

 
1,590

 
1,590

Balance as of December 31, 2016
 
$
491,219

 
$
84,561

 
$
575,780

 
 
 
 
 
 
 
Gross balance as of December 31, 2016
 
$
708,133

 
$
105,561

 
$
813,694

Accumulated impairment losses
 
(216,914
)
 
(21,000
)
 
(237,914
)
Net balance as of December 31, 2016
 
491,219

 
84,561

 
575,780

Cracked impairment charge
 
—

 
(29,403
)
 
(29,403
)
Katz acquisition
 
—

 
209,572

 
209,572

Balance as of December 31, 2017
 
$
491,219

 
$
264,730

 
$
755,949

 
 
 
 
 
 
 
Gross balance as of December 31, 2017
 
$
708,133

 
$
315,133

 
$
1,023,266

Accumulated impairment losses
 
(216,914
)
 
(50,403
)
 
(267,317
)
Net balance as of December 31, 2017
 
$
491,219

 
$
264,730

 
$
755,949


Other intangible assets consisted of the following:
 
 
As of December 31,
(in thousands)
 
2017
 
2016
 
 
 
 
 
Amortizable intangible assets:
 
 
 
 
Carrying amount:
 
 
 
 
Television network affiliation relationships
 
$
248,444

 
$
248,444

Customer lists and advertiser relationships
 
69,500

 
45,500

Other
 
37,069

 
26,923

Total carrying amount
 
355,013

 
320,867

Accumulated amortization:
 
 
 
 
Television network affiliation relationships
 
(49,639
)
 
(37,019
)
Customer lists and advertiser relationships
 
(26,345
)
 
(22,525
)
Other
 
(10,269
)
 
(5,987
)
Total accumulated amortization
 
(86,253
)
 
(65,531
)
Net amortizable intangible assets
 
268,760

 
255,336

Indefinite-lived intangible assets — FCC licenses
 
157,215

 
157,215

Total other intangible assets
 
$
425,975

 
$
412,551


We have classified our radio segment as held for sale as of December 31, 2017 and any goodwill or intangible assets associated with the radio segment are included in assets held for sale in the Consolidated Balance Sheets. The tables above have also been recast to reflect our new segment presentation.

In 2017, we paid $9.7 million to acquire cable and satellite carriage rights for the launch of our Newsy cable network. These rights are amortized over the life of the respective carriage agreement. Additional amounts may be owed to the seller if certain conditions are met.
Estimated amortization expense of intangible assets for each of the next five years is $27.5 million in 2018, $26.1 million in 2019, $24.9 million in 2020, $22.5 million in 2021, $20.3 million in 2022 and $147.5 million in later years.
Goodwill and indefinite-lived intangible assets are tested for impairment annually and any time events occur or conditions change that would indicate it is more likely than not the fair value of a reporting unit is below its carrying value. Such indicators of impairment include, but are not limited to, changes in business climate or other factors resulting in low cash flow related to such assets. If the fair value is less than the carrying value of the reporting unit then an impairment of goodwill exists and an impairment charge is recorded for the difference between the carrying value of the reporting unit and its estimated fair value, not to exceed the carrying value of the goodwill.

The slower development of our original operating model and a revised operating model which will result in a smaller business for Cracked, created indications of impairment of goodwill as of September 30, 2017.

Under the process required by GAAP, we estimated the fair value of Cracked. The fair value was determined using a combination of discounted cash flow approach, which estimated fair value based upon future revenues, expenses and cash flows discounted to their present value, and a market approach, which estimated fair value using market multiples of various financial measures compared to a set of comparable public companies. The discounted cash flow approach utilized unobservable factors, such as projected revenues and expenses and a discount rate applied to the estimated cash flows. The determination of the discount rate was based on a cost of capital model, using a risk-free rate, adjusted by a stock-beta adjusted risk premium and a size premium. The inputs to the nonrecurring fair value determination of our reporting units are classified as Level 3 fair value measurements under GAAP.

The valuation methodology and underlying financial information used to determine fair value requires significant judgments to be made by management. These judgments include, but are not limited to, long-term projections of future financial performance and the selection of appropriate discount rates used to determine the present value of future cash flows. Changes in such estimates or the application of alternative assumptions could produce significantly different results.

We concluded that the fair value of Cracked did not exceed its carrying value as of September 30, 2017. Based upon our valuations, we recorded a $29 million non-cash charge in 2017 to reduce the carrying value of goodwill and $6.3 million to reduce the value of intangible assets.

During 2015, changes in the market for the distribution of video programming services, including the development of over-the-top distribution platforms resulted in the need for additional investment in Newsy. The additional investment, combined with the slower development of our original revenue model, created indications of impairment of goodwill and we recorded a $21 million non-cash charge to reduce the carrying value of goodwill and $2.9 million to reduce the value of intangible assets.

We also recorded a $1.5 million goodwill impairment charge on a second small business in 2015.