Broadcast Licenses (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
|---|
| Indefinite-lived Intangible Assets [Line Items] |
|
| Schedule of Changes in Broadcasting Licenses |
The following table presents the changes in broadcasting licenses that include acquisitions and divestitures of radio stations and FM translators as described in Note 3 – Recent Transactions.
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Year Ended December 31, |
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| |
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2018 |
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|
2019 |
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| |
|
(Dollars
in
thousands)
|
|
Balance, beginning of period before cumulative loss on impairment |
|
$ |
486,455 |
|
|
$ |
484,691 |
|
Accumulated loss on impairment |
|
|
(105,541 |
) |
|
|
(108,375 |
) |
|
|
|
|
|
|
|
|
|
Balance, beginning of period after cumulative loss on impairment |
|
|
380,914 |
|
|
|
376,316 |
|
|
|
|
|
|
|
|
|
|
Acquisitions of radio stations |
|
|
6,270 |
|
|
|
617 |
|
Acquisitions of FM translators and construction permits |
|
|
19 |
|
|
|
35 |
|
|
|
|
— |
|
|
|
300 |
|
Abandoned capital projects |
|
|
(40 |
) |
|
|
— |
|
Disposition of radio stations |
|
|
(8,013 |
) |
|
|
(36,502 |
) |
Impairments based on the estimated fair value of broadcast licenses |
|
|
(2,834 |
) |
|
|
(2,908 |
) |
|
|
|
|
|
|
|
|
|
Balance, end of period after cumulative loss on impairment |
|
$ |
376,316 |
|
|
$ |
337,858 |
|
|
|
|
|
|
|
|
|
|
Balance, end of period before cumulative loss on impairment |
|
$ |
484,691 |
|
|
$ |
441,143 |
|
Accumulated loss on impairment |
|
|
(108,375 |
) |
|
|
(103,285 |
) |
|
|
|
|
|
|
|
|
|
Balance, end of period after cumulative loss on impairment |
|
$ |
376,316 |
|
|
$ |
337,858 |
|
|
|
|
|
|
|
|
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|
| Schedule Of Carrying Value and Fair Value of Broadcast Licenses |
The table below presents the percentage within a range by which our prior year start-up income estimated fair value exceeds the current year carrying value of our broadcasting licenses:
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Geographic Market Clusters as of December 31, 2019
Percentage Range By Which 2018 Estimated Fair Value
Exceeds 2019 Carrying Value
|
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| |
|
£ 25% |
|
|
>26%-50% |
|
|
>51% to 75% |
|
|
> +than 76% |
|
Number of accounting units |
|
|
10 |
|
|
|
5 |
|
|
|
2 |
|
|
|
8 |
|
Broadcast license carrying value (in thousands) |
|
$ |
138,730 |
|
|
$ |
76,364 |
|
|
$ |
8,150 |
|
|
$ |
63,869 |
|
The table below presents the percentage within a range by which our September 30, 2019 start-up income estimated fair value exceeds the current year carrying value of our broadcasting licenses:
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Geographic Market Clusters as of December 31, 2019 |
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|
Percentage Range By Which September 2019 Estimated Fair Value
Exceeds 2019 Carrying Value
|
|
| |
|
£ 25% |
|
|
>26%-50% |
|
|
>51% to 75% |
|
|
> +than 76% |
|
Number of accounting units |
|
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Broadcast license carrying value (in thousands) |
|
$ |
101,948 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
The table below shows the percentage within a range by which our estimated fair value exceeded the carrying value of our broadcasting licenses for these 6 remaining market clusters:
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Geographic Market Clusters as of December 31, 2019 |
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|
Tested due to SOI Multiple and length of time from prior valuation—Percentage
Range by Which Prior Valuation Exceeded 2019 Carrying Value |
|
| |
|
£ 25% |
|
|
>26%-50% |
|
|
>51% to 75% |
|
|
> +than 76% |
|
Number of accounting units |
|
|
— |
|
|
|
1 |
|
|
|
4 |
|
|
|
1 |
|
Broadcast license carrying value (in thousands) |
|
$ |
— |
|
|
$ |
9,333 |
|
|
$ |
37,945 |
|
|
$ |
4,281 |
|
|
| Schedule of Interim Impairment Testing Under Start-Up Income Approach |
The table below presents the results of our impairment testing under the start-up income approach at December 31, 2019:
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|
Excess Fair Value December 31, 2019 Estimate
|
|
|
|
|
73.7 |
% |
|
|
|
31.4 |
% |
|
|
|
11.2 |
% |
|
|
|
1.2 |
% |
|
|
|
43.8 |
% |
|
|
|
40.7 |
% |
|
|
|
40.6 |
% |
|
|
|
6.4 |
% |
|
|
|
1071.7 |
% |
|
|
|
125.1 |
% |
|
|
|
62.1 |
% |
|
|
|
15.21 |
|
|
|
|
6.1 |
% |
|
|
|
12.2 |
% |
|
|
|
28.4 |
% |
|
|
|
(12.5 |
%) |
|
| Broadcast Licenses [Member] |
|
| Indefinite-lived Intangible Assets [Line Items] |
|
| Schedule of Estimates and Assumptions Used in the Start - Up Income Valuation for Broadcast Licenses |
The assumptions used reflect those of a hypothetical market participant and not necessarily the actual or projected results of Salem. The key estimates and assumptions used in the start-up income valuation for the broadcast licenses tested in each period were as follows:
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|
December 31, 2018 |
|
September 30, 2019 |
|
December 31, 2019 |
Risk-adjusted discount rate |
|
9.0% |
|
9.0% |
|
9.0% |
Operating profit margin ranges |
|
4.4% - 34.5% |
|
4.3% - 30.7% |
|
|
Long-term revenue growth rates |
|
0.5% - 1.2% |
|
0.7% - 1.1% |
|
0.7% - 1.1% |
|