XML 27 R16.htm IDEA: XBRL DOCUMENT
v3.23.2

Goodwill and Other Intangible Assets | 6 Months Ended
--- | ---
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill consisted of the following:
(in thousands) |  | Local Media |  | Scripps Networks |  | Other |  | Total
Gross balance as of December 31, 2022 |  | $ | 1,122,408 |  |  | $ | 2,028,890 |  |  | $ | 7,190 |  |  | $ | 3,158,488 |
Accumulated impairment losses |  | (216,914) |  |  | (21,000) |  |  | — |  |  | (237,914) |
Net balance as of December 31, 2022 |  | $ | 905,494 |  |  | $ | 2,007,890 |  |  | $ | 7,190 |  |  | $ | 2,920,574 |
Gross balance as of June 30, 2023 |  | $ | 1,122,408 |  |  | $ | 2,028,890 |  |  | $ | 7,190 |  |  | $ | 3,158,488 |
Accumulated impairment losses |  | (216,914) |  |  | (707,000) |  |  | — |  |  | (923,914) |
Net balance as of June 30, 2023 |  | $ | 905,494 |  |  | $ | 1,321,890 |  |  | $ | 7,190 |  |  | $ | 2,234,574 |
Other intangible assets consisted of the following:
(in thousands) |  | As of June 30, 2023 |  | As of December 31, 2022
Amortizable intangible assets: |  |  |  |
Carrying amount: |  |  |  |
Television affiliation relationships |  | $ | 1,060,244 |  |  | $ | 1,060,244 |
Customer lists and advertiser relationships |  | 220,997 |  |  | 220,997 |
Other |  | 136,100 |  |  | 136,100 |
Total carrying amount |  | 1,417,341 |  |  | 1,417,341 |
Accumulated amortization: |  |  |  |
Television affiliation relationships |  | (249,127) |  |  | (222,092) |
Customer lists and advertiser relationships |  | (119,313) |  |  | (106,654) |
Other |  | (54,444) |  |  | (47,156) |
Total accumulated amortization |  | (422,884) |  |  | (375,902) |
Net amortizable intangible assets |  | 994,457 |  |  | 1,041,439 |
Indefinite-lived intangible assets — FCC licenses |  | 779,815 |  |  | 779,815 |
Total other intangible assets |  | $ | 1,774,272 |  |  | $ | 1,821,254 |
Estimated amortization expense of intangible assets for each of the next five years is $47.0 million for the remainder of 2023, $92.7 million in 2024, $89.6 million in 2025, $86.1 million in 2026, $83.2 million in 2027, $62.0 million in 2028 and $533.9 million in later years. Goodwill and other indefinite-lived intangible assets are tested for impairment annually and any time events occur or changes in circumstances indicate it is more likely than not the fair value of a reporting unit, or respective indefinite-lived intangible asset, is below its carrying value. Such events or changes in circumstances include, but are not limited to, changes in business climate, declines in the price of our stock, or other factors resulting in lower cash flow related to such assets. If the carrying amount exceeds its fair value, then an impairment loss is recognized. Following completion of our 2022 annual goodwill impairment testing, we concluded that the fair value of our Local Media reporting unit exceeded its carrying value by 30% and the fair value of our Scripps Networks reporting unit exceeded its carrying value by 2.5%. The Scripps Networks business has experienced softness within the national advertising marketplace as macroeconomic challenges have continued to impact advertising budgets. A longer than anticipated advertising recession and the impact of declining linear television viewership trends have negatively impacted expected future growth rates, profitability and the cash flows derived from the business, as well as, the expected period of time over which those cash flows will occur. These factors, coupled with decreases in our market capitalization over the first two quarters of 2023, provided an indication that the fair value of our Scripps Networks reporting unit may be below its carrying value at June 30, 2023. The quantitative analysis to measure the extent of any goodwill impairment compares the estimated fair values of our reporting units to their respective carrying values. We determine fair value of our reporting units generally using market data, appraised values and discounted cash flow analyses. The use of a discounted cash flow analysis requires significant judgment to estimate the future cash flows derived from the business and the period of time over which those cash flows will occur, as well as to determine an appropriate discount rate. The determination of the discount rate is based on a cost of capital model, using a risk-free rate, adjusted by a stock-beta adjusted risk premium and a size premium. These reporting unit valuations are dependent on a number of significant estimates and assumptions, including macroeconomic conditions, market growth rates, competitive activities, cost containment, margin expansion and strategic business plans (inputs of which are categorized as Level 3 under the fair value hierarchy). Additionally, future changes in these assumptions and estimates with respect to long-term growth rates and discount rates or future cash flow projections, could result in significantly different estimates of the fair values. Following completion of our second quarter 2023 testing, we concluded that the fair value of our Scripps Networks reporting unit did not exceed its carrying value and we recognized a $686 million non-cash goodwill impairment charge.

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

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration