Assets Held for Sale and Discontinued Operations

Radio Divestiture

In the fourth quarter of 2017, we began the process to divest our radio business. Our radio business consists of 34 radio stations in eight markets. We have classified the radio segment as held for sale in our condensed consolidated balance sheets and reported its results as discontinued operations in our condensed consolidated statements of operations.

Operating results of our discontinued radio operations were as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2018			2017			2018			2017

Operating revenues	$	17,386		$	17,784		$	30,685		$	32,213
Total costs and expenses	(13,421		)	(14,163		)	(24,937		)	(26,353		)
Depreciation and amortization of intangibles	—			(868		)	—			(1,731		)
Impairment of goodwill	(5,900		)	—			(25,900		)	—
Other, net	(9		)	(211		)	(157		)	(251		)
Income (loss) from discontinued operations before income taxes	(1,944		)	2,542			(20,309		)	3,878
Provision for income taxes	998			852			1,137			1,394
Net income (loss) from discontinued operations	$	(2,942	)	$	1,690		$	(21,446	)	$	2,484

During the first quarter of 2018, we recorded a $20 million non-cash impairment charge to write-down the goodwill of our radio business to fair value. For the second quarter of 2018, operating results of our discontinued radio operations include a $5.9 million charge to adjust the carrying value of our radio business assets to sale prices agreed to with buyers for our Tulsa and Milwaukee stations and estimated values of the remaining stations.

The following table presents a summary of the radio assets held for sale included in our condensed consolidated balance sheets.



(in thousands)	As of June 30, 2018		As of December 31, 2017

Assets:
Total current assets	$	13,206	$	12,891
Property and equipment	36,055		35,470
Goodwill and intangible assets	61,562		87,462
Other assets	181		181
Total assets included in the disposal group	111,004		136,004
Liabilities:
Total current liabilities	3,841		3,248
Deferred income taxes	16,290		16,288
Other liabilities	—		—
Total liabilities included in the disposal group	20,131		19,536
Net assets included in the disposal group	$	90,873	$	116,468

On June 22, 2018, we entered into a definitive agreement to sell our five Tulsa, OK radio stations for $12.5 million. The transaction is subject to, among other things, FCC approval and other customary closing conditions, and is expected to close in the fourth quarter of 2018.

We also entered into a Local Marketing Agreement (“LMA”) on June 22, 2018 with the acquirer of the Tulsa radio stations. Under the terms of this agreement, the acquiring entity will pay us a monthly LMA fee and will also reimburse us for certain station expenses, as defined in the agreement, in exchange for the right to program and sell advertising from the stations' inventory of broadcast time. The LMA became effective on July 30, 2018.

In the third quarter of 2018, we entered into a definitive agreement to sell our two Milwaukee, WI radio stations for $16.0 million. The transaction is subject to, among other things, FCC approval and other customary closing conditions, and is expected to close in the fourth quarter of 2018.