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ASSETS HELD FOR SALE (Block)
 3 Months Ended
Mar. 31, 2018
Discontinued Operations And Disposal Groups Abstract  
Disposal Groups Including Discontinued Operations Disclosure Text Block

11. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

Assets Held for Sale

Long-lived assets to be sold are classified as held for sale in the period in which they meet all the criteria for the disposal of long-lived assets. The Company measures assets held for sale at the lower of their carrying amount or fair value less cost to sell. Additionally, the Company determined that these assets comprise operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company.

On November 17, 2017, in order to facilitate the Merger, the Company assigned assets to a trust and the trust subsequently entered into two separate LMAs with Bonneville which became effective upon the closing of the Merger. Under the terms of the LMAs, Bonneville began operating four stations in Sacramento, California and four stations in San Francisco, California. The LMAs will terminate upon the earlier of: (i) one year after the Merger date; or (ii) consummation of a final agreement to divest the stations as required under a DOJ consent order agreed to by the Company, as a condition to complete the Merger. Of the eight radio stations currently operated by Bonneville, three were originally owned by the Company and the remaining five were originally owned by CBS Radio. The Company conducted an analysis and determined the assets of the eight radio stations met the criteria to be classified as held for sale. The five CBS Radio stations met the criteria to be classified within discontinued operations at March 31, 2018. This transaction is expected to close within one year.

As of December 31, 2017, the Company entered into an agreement to dispose of a parcel of land along with the land improvements in Chicago, Illinois for $46.0 million and classified these assets as held for sale. This transaction is expected to close within one year.

As of December 31, 2017, the Company entered into an agreement to dispose of buildings in Washington, D.C., with a carrying value of $0.4 million. During the first quarter of 2018, the Company closed on this sale, which resulted in no gain or loss to the Company.

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company determined that the carrying value of these assets was less than the fair value by utilizing offers from third parties for a bundle of assets. This is considered a Level 3 measurement.

The major categories of these assets held for sale, which includes the assets of the discontinued operations, are as follows:

Assets Held for Sale
March 31, 2018December 31, 2017
OtherOther
BonnevilleAssets HeldBonnevilleAssets Held
TotalLMAfor SaleTotalLMAfor Sale
(amounts in thousands)
Land and land improvements$47,110$1,110$46,000$47,110$1,110$46,000
Building1,5201,520-1,9701,520450
Leasehold improvements8888-8888-
Equipment2,6182,618-2,6182,618-
Net property and equipment51,3365,33646,00051,7865,33646,450
Net radio broadcasting licenses136,014136,014-136,014136,014-
Other intangibles1,9471,947-1,9471,947-
Goodwill22,57322,573-22,57322,573-
Total intangibles160,534160,534-160,534160,534-
Net assets held for sale$211,870$165,870$46,000$212,320$165,870$46,450

Discontinued Operations

The results of operations for several radio stations acquired from CBS, which will never be a part of the Company’s continuing operations as these radio stations have been disposed or are expected to be disposed, were classified as discontinued operations for the period commencing after the Merger.

Refer to Note 2, Business Combinations, for additional information on the Bonneville Transaction.

The Company did not have any discontinued operations for the three months ended March 31, 2017. The following table presents the results of operations of the discontinued operations for the three months ended March 31, 2018:

Three Months Ended
March 31,
2018
(amounts in thousands)
Net time brokerage agreement income415
Income before income taxes415
Income taxes87
Income from discontinued operations,
net of income taxes$328