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.

During the second and third quarters of 2018, we entered into definitive agreements to sell our 34 radio stations. We closed on the sale of our Tulsa radio stations on October 1, 2018 and closed on the sales of our Milwaukee, Knoxville, Omaha, Springfield and Wichita radio stations on November 1, 2018. Consideration received from these sales agreements totaled $75.5 million. The sales transactions for the eight remaining stations in Boise and Tucson are expected to close in December of 2018, for total consideration received of $8 million.

Operating results of our discontinued radio operations were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2018			2017			2018			2017

Operating revenues	$	13,456		$	18,407		$	44,141		$	50,620
Total costs and expenses	(14,511		)	(16,176		)	(39,448		)	(42,529		)
Depreciation and amortization of intangible assets	—			(880		)	—			(2,611		)
Impairment of goodwill and intangible assets	—			—			(25,900		)	—
Other, net	—			(10		)	(157		)	(261		)
Income (loss) from discontinued operations before income taxes	(1,055		)	1,341			(21,364		)	5,219
Provision (benefit) for income taxes	(147		)	421			990			1,815
Net income (loss) from discontinued operations	$	(908	)	$	920		$	(22,354	)	$	3,404

During the year-to-date period of 2018, we recorded $25.9 million of non-cash impairment charges to write-down the goodwill of our radio business to fair value.

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



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

Assets:
Total current assets	$	10,412	$	12,891
Property and equipment	36,481		35,470
Goodwill and intangible assets	61,562		87,462
Other assets	181		181
Total assets included in the disposal group	108,636		136,004
Liabilities:
Total current liabilities	5,897		3,248
Deferred income taxes	16,276		16,288
Other liabilities	—		—
Total liabilities included in the disposal group	22,173		19,536
Net assets included in the disposal group	$	86,463	$	116,468

We also entered into separate Local Marketing Agreements (“LMA”) with the acquirer of the Tulsa, OK radio stations and the acquirer of the Wichita, KS, Springfield, MO, Omaha, NE, and Knoxville, TN radio stations. Under the terms of these agreements, the acquiring entities pay us a monthly LMA fee and also reimburse us for certain station expenses, as defined in the agreements, in exchange for the right to program and sell advertising from the stations' inventory of broadcast time. The LMA with the acquirer of the Tulsa, OK radio stations was effective from July 30, 2018 until the closing of the transaction. The other LMA became effective on September 1, 2018. Discontinued operating revenues include LMA fees totaling $0.4 million for the three months ended September 30, 2018.