Annual report pursuant to Section 13 and 15(d)

IMPAIRMENT OF GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS (Tables)

v2.4.1.9
IMPAIRMENT OF GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2014
Qualitative Analysis for Annual Testing Period

The table below presents the results of our impairment testing under the income approach for the 2014 annual testing period:

 

Excess Fair Value  
Market Cluster 2014 Estimate  
Atlanta, GA 33.47 %
Boston, MA 4.68 %
Chicago, IL     3.89 %
Cleveland, OH       42.93 %
Columbus, OH     84.59 %
Dallas, TX       16.93 %
Denver, CO     1230.65 %
Detroit, MI       25.72 %
Honolulu, HI     163.90 %
Houston, TX       1283.46 %
Louisville, KY     33.17 %
Miami FL       56.03 %
Nashville, TN     383.65 %
New York, NY       644.52 %
Omaha NE     59.06 %
Orlando FL       22.86 %
Philadelphia, PA     134.44 %
Phoenix, AZ       11.85 %
Pittsburgh, PA     443.24 %
Portland, OR       2.13 %
Sacramento, CA     24.55 %
San Antonio, TX       284.24 %
San Diego, CA     44.28 %
San Francisco, CA       69.34 %
Seattle, WA     487.01 %
Tampa, FL       24.40 %
Washington, D.C.     137.27 %
Fair Value of Mastheads Calculated by Discounted Cash Flow Method
The key estimates and assumptions to which are as follows:
Mastheads Interim June 30,
2012  		  December 31,
2012
  Interim June 30,
2013
  December 31,
2013		     December 31,
2014		  
Risk adjusted discount rate 8.5%     8.5%
    9.0%
    9.5%
    8.0%
Projected revenue growth ranges 1.5% - 2.50%     1.5% - 3.0%       1.0% - 2.8%       1.2% - 2.5%       (4.8%)–1.4%
Royalty growth rate
3.0%     3.0%
    3.0%
    2.0%
    3.0%
Enterprise Valuation [Member]  
Key Estimates and Assumptions Used for Valuations
The key estimates and assumptions used for our enterprise valuations are as follows:
December 31, 2012     December 31, 2013     December 31, 2014  
Enterprise Valuations Broadcast Markets     Broadcast Markets     Broadcast Markets  
Risk adjusted discount rate  9.0%
       9.0%
       8.0%  
Operating profit margin ranges  16.9% - 49.2%       11.9% - 44.7%       8.4% - 46.1%  
Long-term revenue market growth rate ranges     1.0% - 3.5%       1.0%—2.5%       1.0% - 5.0%  
Broadcast licenses [Member]  
Percentage Range by which Fair Value Exceeded Carrying Value
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:
Geographic Market Clusters as of December 31, 2014
Percentage Range By Which 2013 Estimated Fair Value Exceeds 2014 Carrying Value
≤ 25%   >26%-50%     >50% to 75%     > than 75%  
Number of accounting units 15     —     —     4  
Broadcast license carrying value (in thousands)   $ 255,883     $ —     $ —     $ 45,034  
Key Estimates and Assumptions Used for Valuations

The key estimates and assumptions used in the start-up income valuation for our broadcast licenses were as follows:

 

Broadcast Licenses December 31, 2012   December 31, 2013     December 31, 2014  
Risk adjusted discount rate 9.0%   9.0%     8.0%  
Operating profit margin ranges 5.1% - 35.5%   4.1% - 37.5%     (13.9%) - 30.8%  
Long-term market revenue growth rate ranges 0.3% - 15.0%   1.0% - 2.5%     1.5% - 2.5%  
Goodwill-Broadcast [Member]  
Percentage Range by which Fair Value Exceeded Carrying Value
The tables below present the percentage within a range by which the estimated fair value exceeded the carrying value of each of our market clusters, including goodwill:

 

Broadcast Market Clusters as of December 31, 2014
Percentage Range By Which Estimated Fair Value Exceeds Carrying Value Including
Goodwill
< 10% >10% to 20%     >20% to 50%     > than 50%  
               
Number of accounting units     5       —       2       7  
Carrying value including goodwill (in thousands)   $ 81,507     $ —     $ 27,636     $ 254,645  

 

Broadcast Market Clusters as of December 31, 2013
Percentage Range By Which Estimated Fair Value Exceeds Carrying Value Including
Goodwill
< 1% >10% to 20%     >20% to 50%     > than 50%  
                       
Number of accounting units     4       1       3       3  
Carrying value including goodwill (in thousands)   $ 28,952     $ 17,978     $ 45,375     $ 45,152  

 

Broadcast Market Clusters as of December 31, 2012
Percentage Range By Which Estimated Fair Value Exceeds Carrying Value Including
Goodwill
< 10% >10% to 20%     >20% to 50%     > than 50%  
                       
Number of accounting units     2       1       1       5  
Carrying value including goodwill (in thousands)   $ 18,836     $ 1,423     $ 10,506     $ 132,645  

 
Station Operating Income [Member] | Broadcast licenses [Member]  
Percentage Range by which Fair Value Exceeded Carrying Value
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 eleven market clusters:
Geographic Market Clusters as of December 31, 2014
Tested in current year based on length of time from prior valuation
≤ 5%   >2%-10%     >11% to 40%     > than 40%  
Number of accounting units   —     3     3       5  
Broadcast license carrying value (in thousands)   $ —     $ 13,408     $ 20,214     $ 18,040  
The table below presents the percentage within a range by which our estimated fair value as a multiple of SOI exceeded the carrying value of our broadcasting licenses for these market clusters:
Geographic Market Clusters as of December 31, 2014
Percentage Range By Which SOI Estimated Fair Value Exceeds Carrying Value
≤ 5%   >2%-10%     >11% to 40%     > than 40%  
Number of accounting units   3       —       —       —  
Broadcast license carrying value (in thousands)   $ 33,120     $ —     $ —     $ —  
Digital Media [Member]  
Percentage Range by which Fair Value Exceeded Carrying Value

The table below presents the percentage within a range by which the estimated fair value exceeded the carrying value of our accounting units, including goodwill.

 

Digital Media Entities as of December 31, 2014
Percentage Range By Which Estimated Fair Value Exceeds Carrying Value Including
Goodwill
< 10% >10% to 20%     >20% to 50%     > than 50%  
               
Number of accounting units     1       1       1       1  
Carrying value including goodwill (in thousands)   $ 4,649     $ 6,118     $ 385     $ 26,101  

 

Digital Media Entities as of December 31, 2013
Percentage Range By Which Estimated Fair Value Exceeds Carrying Value Including
Goodwill
< 10% >10% to 20%     >20% to 50%     > than 50%  
               
Number of accounting units     1       -       1       -  
Carrying value including goodwill (in thousands)   $ 27,456     $ -     $ 2,984     $ -  

 

Digital Media Entities as of December 31, 2012
Percentage Range By Which Estimated Fair Value Exceeds Carrying Value Including
Goodwill
< 10% >10% to 20%     >20% to 50%     > than 50%  
               
Number of accounting units     -       -       2       -  
Carrying value including goodwill (in thousands)   $ -     $ -     $ 28,722     $ -  
Digital Media [Member] | Enterprise Valuation [Member]  
Key Estimates and Assumptions Used for Valuations

The key estimates and assumptions used in the start-up income valuation of our digital media entities for each testing period are as follows:

 

Enterprise Valuation   December 31, 2012   December 31, 2013   December 31, 2014
Risk adjusted discount rate   13.5%   13.5%   8.0%
Operating profit margin ranges   21.2% - 22.0%   21.2% - 22.0%   (7.4%) - 34.9%
Long-term revenue market growth rate ranges   3.0%   3.0%   2.50%

 
Publishing [Member]  
Percentage Range by which Fair Value Exceeded Carrying Value

The table below presents the percentage within a range by which the estimated fair value exceeded the carrying value of our accounting units, including goodwill.

 

Publishing Accounting units as of December 31, 2014
Percentage Range By Which Estimated Fair Value Exceeds Carrying Value Including Goodwill
< 10% >10% to 20%     >20% to 50%     > than 50%  
               
Number of accounting units     2       -       -       1  
Carrying value including goodwill (in thousands)   $ 3,417     $ -     $ -     $ 2,314  

 

Publishing Accounting units as of December 31, 2013
Percentage Range By Which Estimated Fair Value Exceeds Carrying Value Including
Goodwill
< 10% >10% to 20%     >20% to 50%     > than 50%  
               
Number of accounting units     1       -       1       -  
Carrying value including goodwill (in thousands)   $ 1,251     $ -     $ 2,123     $ -  

 

Publishing Accounting units as of December 31, 2012
Percentage Range By Which Estimated Fair Value Exceeds Carrying Value Including
Goodwill
< 10% >10% to 20%     >20% to 50%     > than 50%  
               
Number of accounting units     -       -       -       2  
Carrying value including goodwill (in thousands)   $ -     $ -     $ -     $ 2,103  
Publishing [Member] | Enterprise Valuation [Member]  
Key Estimates and Assumptions Used for Valuations
The key estimates and assumptions used for our enterprise valuations are as follows:
Enterprise Valuation   Interim
June 30, 2012 		  December 31,
2012 		  Interim
June 30, 2013 		  December 31,
2013 		  December 31,
2014
Risk adjusted discount rate   8.5%   8.5%   9.0%   9.5%   8.0%
Operating margin ranges   1.4% - 7.5%   0.5% - 7.0%   0.9% - 6.0%   (0.5%)–6.0%   2.4% -5.9%
Long-term revenue market growth rate ranges   1.5%   1.5%   1.0%   0.5%   1.5%