FCC Licenses

12 Months Ended

Dec. 31, 2021

(5)	FCC Licenses

Changes in the carrying amount of FCC licenses for the years ended December 31, 2020 and 2021 are as follows:


Balance as of January 1, 2020	$	517,529,167
Impairment losses		(8,970,812	)

Balance as of December 31, 2020		508,558,355
Disposition		(144,442	)

Balance as of December 31, 2021	$	508,413,913

The Company performed its annual impairment test for its FCC licenses as of November 30, 2021 and did not

record

any impairment losses related to the FCC licenses in each of its reporting units.

On February 3, 2021, the Company completed the sale of

WHSR-AM

in West Palm Beach-Boca Raton, FL to a third party for $0.4 million. The sale included an FCC translator license with a carrying amount of $0.1 million.

Due to the impact of the

COVID-19

pandemic on the U.S. economy, the Company tested its FCC licenses for impairment during the first quarter of 2020. As a result of the quantitative impairment test, the Company recorded impairment losses of $6.8 million related to the FCC licenses in its Atlanta, GA, Las Vegas, NV, Middlesex-Monmouth-Morristown, NJ, West Palm Beach-Boca Raton, FL, and Wilmington, DE radio market clusters. The impairment losses were primarily due to a decrease in projected revenue in these markets due to the impact of the

COVID-19

pandemic and an increase in the discount rate used in the discounted cash flow analyses to estimate the fair value of the FCC licenses due to certain risks specifically associated with the Company and the radio broadcasting industry. The fair values were estimated using an income approach. The income approach is based upon discounted cash flow analyses incorporating variables, such as projected radio market revenues, projected growth rate for radio market revenues, projected radio market revenue shares, projected radio station operating income margins, and a discount rate appropriate for the radio broadcasting industry. The key assumptions used in the discounted cash flow analyses are as follows:


Revenue growth rates		(14.1)% - 7.9%
Market revenue shares at maturity		0.6% - 39.0%
Operating income margins at maturity		26.5% - 35.4%
Discount rate		9.5%

On December 31, 2020, the Company completed the sale of certain land in Charlotte, NC to a third party for $4.65 million. As a result of the sale, the Company no longer utilizes one FCC license in that market. Therefore, the carrying amount of $2.2 million was recorded in impairment losses during the fourth quarter of 2020.