GOODWILL AND RADIO BROADCASTING LICENSES

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

3. GOODWILL AND RADIO BROADCASTING LICENSES:

Impairment Testing

In accordance with ASC 350, “Intangibles - Goodwill and Other,” we do not amortize our indefinite-lived radio broadcasting licenses and goodwill. Instead, we perform a test for impairment annually or on an interim basis when events or changes in circumstances or other conditions suggest impairment may have occurred in any given reporting unit. Other intangible assets continue to be amortized on a straight-line basis over their useful lives. We perform our annual impairment test as of October 1 of each year.

Valuation of Broadcasting Licenses

During the second quarter of 2015, the total market revenue growth for certain markets in which we operate was below that used in our 2014 annual impairment testing. We deemed that to be an impairment indicator that warranted interim impairment testing of certain markets’ radio broadcasting licenses, which we performed as of June 30, 2015. There was no impairment identified as part of this testing. During the first and second quarters of 2014, the total market revenue growth for certain markets in which we operate was below that used in our 2013 annual impairment testing. We deemed that to be an impairment indicator that warranted interim impairment testing of certain markets’ radio broadcasting licenses, which we performed as of March 31, 2014, and June 30, 2014. There was no impairment identified as part of this testing. There were no impairment indicators present for any of our other radio broadcasting licenses. Below are some of the key assumptions used in the income approach model for estimating broadcasting licenses fair values for the annual impairment assessment as of October 1, 2014, and interim impairment assessments for the quarters ended June 30, 2015 and 2014.

Radio Broadcasting	June 30,			October 1,			June 30,
Licenses	2015 (a)			2014			2014 (a)

Pre-tax impairment charge (in millions)	$	—		$	—		$	—

Discount Rate		9.5	%		9.5	%		9.5	%
Year 1 Market Revenue Growth Rate Range		0.3% – 0.9	%		0.3% – 1.0	%		1.5% - 2.2	%
Long-term Market Revenue Growth Rate Range (Years 6 – 10)		1.0% – 2.0	%		1.0% – 2.0	%		2.0	%
Mature Market Share Range		6.9% – 25.2	%		6.9% – 25.2	%		6.4% – 26.9	%
Operating Profit Margin Range		30.9% – 48.5	%		30.0% – 48.4	%		34.8% - 47.8	%

(a)	Reflects changes only to the key assumptions used in the interim testing for certain units of accounting.

Valuation of Goodwill

During the second quarter of 2015, we identified an impairment indicator at one of our radio markets, and as such, we performed an interim analysis for certain radio market goodwill as of June 30, 2015. Similarly, during the first and second quarters of 2014, we identified impairment indicators at certain of our radio markets, and, as such, we performed an interim impairment analysis for certain radio market reporting units as of June 30, 2014 and March 31, 2014. No goodwill impairment was identified during the three or six months ended June 30, 2015 and 2014. Below are some of the key assumptions used in the income approach model for estimating reporting unit fair values for the annual impairment assessment as of October 1, 2014, and interim impairment assessments for the quarters ended June 30, 2015 and 2014.

Goodwill (Radio Market	June 30,			October 1,				June 30,
Reporting Units)	2015 (a)			2014				2014 (a)

Pre-tax impairment charge (in millions)	$	–		$	–		$	–

Discount Rate		9.5	%		9.5	%		9.5	%
Year 1 Market Revenue Growth Rate Range		0.7	%		0.3% – 1.0	%		1.3% - 1.5	%
Long-term Market Revenue Growth Rate Range (Years 6 – 10)		2.0	%		1.0% - 2.0	%		1.5% - 2.0	%
Mature Market Share Range		7.4	%		7.2% - 19.5	%		7.8% - 9.5	%
Operating Profit Margin Range		37.0	%		26.4% - 52.2	%		27.9% - 34.8	%

(a)	Reflects changes only to the key assumptions used in the interim testing for certain units of accounting.

Goodwill Valuation Results

The table below presents the Company’s goodwill carrying values for its four reportable segments.

	Goodwill Carrying Balances
	As of				As of
	December		Increase		June
Reporting Unit	31, 2014		(Decrease)		30, 2015
			(In thousands)

Radio Broadcasting Segment	$	73,535	$	—	$	73,535

Reach Media Segment		14,354		—		14,354

Internet Segment		22,422		582		23,004

Cable Television Segment		165,044		—		165,044

Total	$	275,355	$	582	$	275,937

The increase to the Internet reporting unit’s goodwill carrying value for the six months ended June 30, 2015, relates to an adjustment of the Company’s purchase accounting related to Global Grind.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details