XML 22 R9.htm IDEA: XBRL DOCUMENT
v3.22.4

Broadcast Licenses, Goodwill and Other Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2022
Broadcast Licenses, Goodwill and Other Intangible Assets |
Broadcast Licenses, Goodwill and Other Intangible Assets | 3. Broadcast Licenses, Goodwill and Other Intangible Assets We evaluate our FCC licenses for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. We operate our broadcast licenses in each market as a single asset and determine the fair value by relying on a discounted cash flow approach assuming a start-up scenario in which the only assets held by an investor are broadcast licenses. The fair value calculation contains assumptions incorporating variables that are based on past experiences and judgments about future operating performance using industry normalized information for an average station within a market. These variables include, but are not limited to: (1) the forecasted growth rate of each radio market, including population, household income, retail sales and other expenditures that would influence advertising expenditures; (2) the estimated available advertising revenue within the market and the related market share and profit margin of an average station within a market; (3) estimated capital start-up costs and losses incurred during the early years; (4) risk-adjusted discount rate; (5) the likely media competition within the market area; and (6) terminal values. If the carrying amount of FCC licenses is greater than their estimated fair value in a given market, the carrying amount of FCC licenses in that market is reduced to its estimated fair value. We also evaluate goodwill for impairment annually, or more frequently if certain circumstances are present. If the carrying amount of goodwill in a reporting unit is greater than the implied value of goodwill determined by completing a hypothetical purchase price allocation using estimated fair value of the reporting unit, the carrying amount of goodwill in that reporting unit is reduced to its implied value. ​ We evaluate amortizable intangible assets for recoverability when circumstances indicate impairment may have occurred, using an undiscounted cash flow methodology. If the future undiscounted cash flows for the intangible asset are less than net book value, then the net book value is reduced to the estimated fair value. Amortizable intangible assets are included in other intangibles, deferred costs and investments in the consolidated balance sheets. Broadcast Licenses We have recorded the changes to broadcast licenses for the years ended December 31, 2022 and 2021 as follows: ​
​ | ​ | ​ | ​
​ |  | Total
​ | ​ | (in thousands)
​ | ​ | ​ | ​
Balance at January 1, 2021 | ​ | $ | 90,208
Acquisitions | ​ |  | 69
Balance at December 31, 2021 | ​ | $ | 90,277
Acquisitions | ​ |  | 30
Balance at December 31, 2022 | ​ | $ | 90,307
​ 2022 Impairment Test We completed our impairment annual impairment test of broadcast licenses during the fourth quarter of 2022 and determined that the fair value of the broadcast licenses was greater than the carrying value recorded for each of our markets and, accordingly, no impairment was recorded. The following table reflects certain key estimates and assumptions used in the impairment tests during the fourth quarter ended 2022, the fourth quarter of 2021 and the year ended 2020. The ranges for operating profit margin and market long-term revenue growth rates vary by market. In general, when comparing between 2022, 2021 and 2020: (1) the market specific operating profit margin range remained relatively consistent; (2) the market long-term revenue growth rates were relatively consistent with some stabilization of rates in 2022; (3) the discount rate decreased; and (4) current year revenue projections increased with amounts previously projected for 2022. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Fourth |  | Fourth |  | Year |
​ | ​ | Quarter | ​ | Quarter | ​ | Ended |
​ |  | 2022 |  | 2021 |  | 2020 |
Discount rates |  | 9.5 | % | 12.3% - 12.6 | % | 12.6% - 13.0 | %
Operating profit margin ranges |  | 17.8% - 36.4 | % | 17.8% - 36.4 | % | 17.8% - 36.4 | %
Market long-term revenue growth rates |  | 1.0% - 2.0 | % | 0.2% - 2.6 | % | 0.2% - 2.9 | %
​ If actual market conditions are less favorable than those estimated by us or if events occur or circumstances change that would reduce the fair value of our broadcast licenses below the carrying value, we may be required to recognize additional impairment charges in future periods. Such a charge could have a material effect on our consolidated financial statements. We will continue to monitor potential triggering events and perform the appropriate analysis when deemed necessary. ​ 2021 Impairment Test During the fourth quarter of 2021, we completed our annual impairment test of broadcast and determined that the fair value of the broadcast licenses was greater than the carrying value recorded for each of our markets and, accordingly, no impairment was recorded. 2020 Impairment Test Due to the impact of the COVID-19 pandemic on the U.S. economy and the related significant negative impact on our revenue for the second, third and fourth quarter of 2020 (excluding political advertising) in the majority of our markets, the Company tested its FCC License for impairment during the second quarter and again in the third quarter of 2020. Our broadcast revenue was significantly negatively impacted in the majority of the states where we operate, due to economic shutdowns and the related decline in advertising spending nationwide as most companies were making massive payroll cuts out of a necessity to survive with their revenues also significantly impacted. We experienced a significant number of cancellations of advertising on our stations, with the greatest decreases in the following industries/categories: Automotive, Entertainment, Home Improvement, Professional Services, Restaurants, and Retail. The only category where we saw an increase over the prior quarters and year to date in 2020 were political advertising and government/public service/issue advertising. We also saw significant declines in our revenue related to events, venues, travel and sports as these types of businesses have been virtually shut down. We started to see increased revenues from our low point in Q2 2020, however, throughout 2020 they were not at the previously expected recovery rate. Based on the trends we were seeing at our markets we believe that our analysis and estimates used during the third quarter 2020 analysis remained our best estimate and we did not believe any further triggering events occurred during the fourth quarter of 2020 since the date of the previous analysis that would require any additional impairment testing for broadcast licenses. ​ As a result of the quantitative impairment test performed as of June 30, 2020, the Company determined that the fair value of the broadcast licenses were less than the carrying amount on the balance sheet and recorded non-cash impairment charges totaling $3.8 million related to the FCC licenses in our Bucyrus, Ohio; Champaign, Illinois; Charleston, South Carolina; Columbus, Ohio; Harrisonburg, Virginia; Hilton Head, South Carolina; Mitchell, South Dakota; and Ocala, Florida markets. The impairment charges were primarily due to a decrease in projected revenue in these markets due to the impact of the COVID-19 pandemic, an increase in the discount rate used in the discounted cash flow analyses to estimate the fair value of our FCC licenses due to certain risks specifically associated with the Company and the radio broadcasting industry, and a decrease in mature operating margins in small markets due to the cost of operations in a small market. ​ As a result of the quantitative impairment test performed as of September 30, 2020, the Company determined that the fair value of the broadcast licenses were less than the carrying amount on the balance sheet and recorded non-cash impairment charges totaling $1.4 million for the quarter ended September 30, 2020 related to the FCC licenses in our Bellingham, Washington; Champaign, Illinois; Charleston, South Carolina; Columbus, Ohio; Harrisonburg, Virginia; Mitchell, South Dakota; Spencer, Iowa and Springfield, Illinois. The impairment charges were primarily due to a decrease in projected revenue in these markets due to the impact of the COVID-19 pandemic, an increase in the discount rate used in 2019 but slightly less than in the second quarter of 2020, in the discounted cash flow analyses to estimate the fair value of our FCC licenses due to certain risks specifically associated with the Company and the radio broadcasting industry, and a decrease in mature operating margins in small markets due to the cost of operations in a small market. ​ Goodwill During the fourth quarter of 2022, 2021 and 2020, the Company performed its annual impairment test of goodwill in accordance with ASC 350 and determined that the fair value was in excess of its carrying value and, accordingly, no impairment was recorded. We have recorded the changes to goodwill for each of the years ended December 31, 2022 and 2021 as follows: ​
​ | ​ | ​ | ​
​ |  | Total
​ | ​ | (in thousands)
​ | ​ | ​ | ​
Balance at January 1, 2021 | ​ | $ | 19,106
Acquisitions | ​ |  | 103
Balance at December 31, 2021 | ​ | $ | 19,209
Acquisitions | ​ |  | 27
Balance at December 31, 2022 | ​ | $ | 19,236
​ Other Intangible Assets We have recorded amortizable intangible assets at December 31, 2022 as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Gross |  |  | ​ |  |  | ​
​ | ​ | Carrying | ​ | Accumulated | ​ | Net
​ |  | Amount |  | Amortization |  | Amount
​ | ​ | (In thousands)
Non-competition agreements | ​ | $ | 3,861 | ​ | $ | 3,861 | ​ | $ | —
Favorable lease agreements | ​ |  | 5,965 | ​ |  | 5,624 | ​ |  | 341
Customer relationships | ​ |  | 4,660 | ​ |  | 4,660 | ​ |  | —
Other intangibles | ​ |  | 1,829 | ​ |  | 1,799 | ​ |  | 30
Total amortizable intangible assets | ​ | $ | 16,315 | ​ | $ | 15,944 | ​ | $ | 371
​ We have recorded amortizable intangible assets at December 31, 2021 as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Gross | ​ | ​ | ​ | ​ | ​ |
​ | ​ | Carrying | ​ | Accumulated | ​ | Net
​ |  | Amount |  | Amortization |  | Amount
​ |  | (In thousands)
Non-competition agreements |  | $ | 3,861 |  | $ | 3,861 |  | $ | —
Favorable lease agreements | ​ | ​ | 5,965 | ​ | ​ | 5,597 | ​ | ​ | 368
Customer relationships | ​ | ​ | 4,660 | ​ | ​ | 4,660 | ​ | ​ | —
Other intangibles | ​ | ​ | 1,829 | ​ | ​ | 1,788 | ​ | ​ | 41
Total amortizable intangible assets |  | $ | 16,315 |  | $ | 15,906 |  | $ | 409
​ Aggregate amortization expense for these intangible assets for the years ended December 31, 2022, 2021 and 2020, was $48,000, $387,000 and $813,000, respectively. Our estimated annual amortization expense for the years ending December 31, 2023, 2024, 2025, 2026 and 2027 is $71,000, $69,000, $66,000, $65,000 and $60,000, respectively.

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 all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -URI https://asc.fasb.org/subtopic&trid=2144471 + Details
Name: | us-gaap_IntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration