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INTANGIBLE ASSETS AND GOODWILL (Block) | 6 Months Ended
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Jun. 30, 2013
Goodwil And Intangible Assets Disclosure [Abstract] |
Goodwill And Intangible Assets Disclosure Text Block | 2. INTANGIBLE ASSETS AND GOODWILL Goodwill and certain intangible assets are not amortized. The Company accounts for its acquired broadcasting licenses as indefinite-lived intangible assets and, similar to goodwill, these assets are reviewed at least annually for impairment. At the time of each review, if the fair value is less than the carrying value of goodwill and certain intangibles (such as broadcasting licenses), then a charge is recorded to the results of operations. The following table presents the changes in broadcasting licenses for the periods indicated:
|  | Broadcasting Licenses
|  | Carrying Amount
|  | 2013 |  | 2012
|  | (amounts in thousands)
Beginning of period balance as of January 1, |  | $ | 718,355 |  | $ | 715,902
Impairment loss |  |  | - |  |  | (22,307)
Acquisitions |  |  | 301 |  |  | 24,760
Ending period balance as of June 30, |  | $ | 718,656 |  | $ | 718,355
The following table presents the changes in goodwill for each of the periods indicated:
|  |  | Goodwill Carrying Amount
|  |  | 2013 |  | 2012
|  |  | (amounts in thousands)
Goodwill balance before cumulative loss |  |  |  |  |
on impairment as of January 1, | $ | 164,718 |  | $ | 164,506
Accumulated loss on impairment as of January 1, |  | (125,615) |  |  | (125,615)
Goodwill beginning balance after cumulative loss |  |  |  |  |
on impairment as of January 1, |  | 39,103 |  |  | 38,891
Acquisitions |  | - |  |  | 212
Goodwill ending balance as of June 30, | $ | 39,103 |  | $ | 39,103
Broadcasting Licenses Impairment Test The Company performs its annual broadcasting license impairment test during the second quarter of each year by evaluating its broadcasting licenses for impairment at the market level using the direct method. E ach market's broadcasting licenses are combined into a single unit of accounting for purposes of testing impairment, as the broadcasting licenses in each market are operated as a single asset. The Company determines the fair value of the broadcasting licenses in each of its markets by relying on a discounted cash flow approach (a 10-year income model) assuming a start-up scenario in which the only assets held by an investor are broadcasting licenses. The Company's fair value analysis contains assumptions based upon past experience and reflects expectations of industry observers and includes judgments about future performance using industry normalized information for an average station within a certain market. These assumptions include, but are not limited to: (1) the discount rate; (2) the market share and profit margin of an average station within a market, based upon market size and station type; (3) the forecast growth rate of each radio market; (4) the estimated capital start-up costs and losses incurred during the early years; (5) the likely media competition within the market area; (6) a tax rate; and (7) future terminal values. The methodology used by the Company in determining its key estimates and assumptions was applied consistently to each market. Of the seven variables identified above, the Company believes that the assumptions in items (1) through (3) above are the most important to the determination of fair value. Broadcasting License Impairment Testing During The Quarter Ended June 30, 201 T he Company completed its annual impairment test for broadcasting licenses and determined that the fair value of its broadcasting licenses was greater than the amount reflected in the balance sheet for each of the Company's markets and, accordingly, no impairment was recorded. The following table reflects the estimates and assumptions used in the second quarter of 201 3 as compared to the second quarter of 20 1 2, the date of the most recent prior impairment test:
| Estimates And Assumptions
| Second |  | Second
| Quarter |  | Quarter
| 2013 |  | 2012
Discount rate | 9.8% |  | 10.0%
Operating profit margin ranges expected for average stations |  |  |
in the markets where the Company operates | 25.0% to 41.0% |  | 20.7% to 40.9%
Long-term revenue growth rate range of the Company's markets | 1.5% to 2.0% |  | 1.5% to 2.0%
The Company has made reasonable estimates and assumptions to calculate the fair value of its broadcasting licenses; however, these estimates and assumptions could be materially different from actual results. If actual market conditions are less favorable than those projected by the industry or the Company, or if events occur or circumstances change that would reduce the fair value of the Company's broadcasting licenses below the amount reflected in the balance sheet, the Company may be required to conduct an interim test and possibly recognize impairment charges, which may be material, in future periods. The following table reflects the estimates and assumptions used in the second quarter of 201 2 as compared to the second quarter of 20 1 1, the date of the most recent prior impairment test
| Estimates And Assumptions
| Second |  | Second
| Quarter |  | Quarter
| 2012 |  | 2011
Discount rate | 10.0% |  | 10.0%
Operating profit margin ranges expected for average stations |  |  |
in the markets where the Company operates | 20.7% to 40.9% |  | 19.5% to 41.5%
Long-term revenue growth rate range of the Company's markets | 1.5% to 2.0% |  | 1.5% to 2.0%
Goodwill Impairment Test The Company performs its annual goodwill impairment test during the second quarter of each year by evaluating its goodwill for each reporting unit. The Company has determined that a radio market is a reporting unit and, in total, the Company assesses goodwill at 19 separate reporting units (4 of the Company's 23 reporting units have no goodwill). If the fair value of any reporting unit is less than the amount reflected on the balance sheet, an indication exists that the amount of goodwill attributed to a reporting unit may be impaired, and the Company is required to perform a second step of the impairment test. In the second step, the Company compares the amount reflected on the balance sheet to the implied fair value of the reporting unit's goodwill, determined by allocating the reporting unit's fair value to all of its assets and liabilities in a manner similar to a purchase price allocation. To determine the fair value, the Company uses a market approach and, when appropriate, an income approach for each reporting unit. The market approach compares recent sales of similar broadcast radio stations. The income approach uses the subject property's income generated over a specified time and capitalized at an appropriate market rate to arrive at an indication of the most probable selling price. In September 2011, the accounting guidance for how an entity tests goodwill for impairment was revised. The revised guidance allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity is no longer required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This guidance was available but not used for the Company's annual goodwill testing during the second quarter of 201 3. Goodwill Impairment Testing During The Second Quarter Ended June 30, 201 3 The results of step one indicated that it was not necessary to perform the second step analysis in any of the 19 reporting units that contained goodwill. The Company also performed a reasonableness test on the fair value results for goodwill on a combined basis by comparing the amount to the Company's enterprise value based upon its stock price. The Company determined that the results were reasonable. In step one of the Company's goodwill analysis, the Company considered the results of the market approach and the income approach in computing the fair value of the Company's reporting units. In the market approach, the Company applied an estimated market multiple to each reporting unit's operating profit to calculate the fair value. In the income approach, the Company utilized the discounted cash flow methodology to calculate the fair value of the reporting unit (the key estimates and assumptions are included in the table below). Management believes that these approaches are commonly used and appropriate methodologies for valuing broadcast radio stations. Factors contributing to the determination of the reporting unit's operating performance were historical performance and/or management's estimates of future performance. The following table reflects certain key estimates and assumptions applied to each of the Company's markets that were used in the impairment test:
| Estimates And Assumptions
| Second |  | Second
| Quarter |  | Quarter
| 2013 |  | 2012
Discount rate | 9.8% |  | 10.0%
Long-term revenue growth rate range of the Company's markets | 1.5% to 2.0% |  | 1.5% to 2.0%
Market multiple used in step one of the market valuation approach | 7.5x to 8.0x |  | 7.5x to 8.0x
If actual market conditions are less favorable than those projected by the industry or the Company, or if events occur or circumstances change that would reduce the fair value of the Company's goodwill below the amount reflected in the balance sheet, the Company may be required to conduct an interim test and possibly recognize impairment charges, which could be material, in future periods. Goodwill Impairment Testing During The Second Quarter Ended June 30, 20 12 The results of step one indicated that it was not necessary to perform the second step analysis in any of the markets tested, as t he fair values for the goodwill in all of the Company's markets were in excess of the carrying value s. As a result of the step one test, no impairment loss was recorded during the second quarter of 2012. The Company also performed a reasonableness test on the fair value results for goodwill on a combined basis for the Company by comparing it to the enterprise value of the Company based upon the Company's stock price. The Company determined that the results were reasonable. In step one of the Company's goodwill analysis, the Company considered the results of the market approach and the income approach, when appropriate, in computing the fair value of the Company's reporting units. In the market approach, the Company applied an estimated market multiple to each reporting unit's operating performance to calculate the fair value. In the income approach, the Company utilized the discounted cash flow methodology to calculate the fair value of the reporting unit (the key estimates and assumptions are included in the table below). Management believes that these approaches are commonly used and appropriate methodologies for valuing broadcast radio stations. Factors contributing to the determination of the reporting unit's operating performance were historical perfor mance and management's estimate of future performance. The following table reflects certain key estimates and assumptions applied to each of the Company's markets that were used in the second quarter of 2012 and in the second quarter of 2011, the date of the most recent prior impairment test:
| Estimates And Assumptions
| Second |  | Second
| Quarter |  | Quarter
| 2012 |  | 2011
Discount rate | 10.0% |  | 10.0%
Long-term revenue growth rate range of the Company's markets | 1.5% to 2.0% |  | 1.5% to 2.0%
Market multiple used in step one of the market valuation approach | 7.5x to 8.0x |  | 7.5x to 8.0x

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- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16323-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13854-109267 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16373-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16265-109275 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 43, 44, 45, 46, 47 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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