Annual report pursuant to Section 13 and 15(d)

Goodwill (Tables)

v3.22.4
Goodwill (Tables)
 12 Months Ended
Dec. 31, 2022
Schedule of Changes in Goodwill
The following table presents the changes in goodwill including business acquisitions as described in Note 3—Recent Transactions and impairments as described below.
 
    
Year Ended December 31,
  
     2021     
2022
  
    
(Dollars in thousands)
  
Balance, beginning of period before cumulative loss on impairment,
    $ 28,520     
$
28,749
 
Accumulated loss on impairment
      (4,763 )      
(4,763
)
 
    
 
 
     
 
 
  
Balance, beginning of period after cumulative loss on impairment
      23,757     
 
23,986
 
    
 
 
     
 
 
  
Acquisitions of radio stations
      4        —    
Acquisitions of digital media entities
      225       
226
  
Loss on impairment
      —         
(127
 ) 
    
 
 
     
 
 
  
Ending period balance
    $ 23,986     
$
24,085
 
    
 
 
     
 
 
  
Balance, end of period before cumulative loss on impairment
      28,749     
 
28,976
 
Accumulated loss on impairment
      (4,763 )      
(4,891
)
 
    
 
 
     
 
 
  
Ending period balance
    $ 23,986     
$
24,085
 
    
 
 
     
 
 
  
Broadcast Markets Enterprise Valuations [Member]  
Carrying Value and Fair Value of Financial Instrument Disclosure
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, 2022
Percentage Range by Which Estimated Fair Value Exceeds
Carrying Value Including Goodwill
 
 
  
< 10%
 
  
>11% to 20%
 
  
>21% to 50%
 
  
> than 51%
 
Number of accounting units
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
3
 
Carrying value including goodwill (
in thousands
)
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
$
 43,222
 
Schedule of Assumptions Used
The key estimates and assumptions used for our enterprise valuations were as
follows:
 
Broadcast Markets Enterprise Valuations
  
December 31, 2021
  
June 30, 2022
  
December 31, 2022
Risk-adjusted discount rate
    8.5%  
9.5%
  
9.5%
Operating profit margin ranges
    (1.4%) 
-
 
15.0%		  
(7.8%) 
-
 15.0%
  
17.2% - 37.3%
Long-term revenue growth rates
    0.4%  
0.4%
  
0.6% - 0.7%
Digital Media [Member]  
Carrying Value and Fair Value of Financial Instrument Disclosure
The table below presents the percentage within a range by which the estimated fair value exceeded the carrying value of the digital media entities, including goodwill.
 
    
Digital Media Entities as of December 31, 2022

Percentage Range by Which Estimated Fair Value Exceeds Carrying
Value Including Goodwill		  
     < 10%      >10% to 20%      >21% to 50%      > than 51%  
Number of accounting units
     
1
     
 
—  
 
   
 
—  
 
   
 
—  
 
Carrying value including goodwill (
in thousands
)
     
3,282
     
 
—  
 
   
 
—  
 
   
 
—  
 
Schedule of Assumptions Used
The key estimates and assumptions used for our enterprise valuations were as follows:
 
Digital Media Enterprise Valuations
 
December 31, 2021
 
June 30, 2022
 
September 30, 2022
 
December 31, 2022
Risk adjusted discount rate
    9.5%   10.5%   10.5%  
10.5%
Operating profit margin ranges
    25.3% 
-
28.5%		   28.5% 
-
32.9%		   29.0% 
-
33.55%		  
0.9% 
-
5.3%
Long-term revenue growth rates
    0.5%   0.5%   0.5%  
0.6%
Publishing [Member]  
Carrying Value and Fair Value of Financial Instrument Disclosure
The table below presents the percentage within a range by which the estimated fair value exceeded the carrying value of our remaining accounting units, including goodwill.

 
 
  
Publishing Entities as of December 31, 2022
 
 
  
Percentage Range by Which Estimated Fair Value Exceeds Carrying Value
Including Goodwill
 
 
  
< 10%
 
  
>11% to 20%
 
  
>21% to 50%
 
  
> than 51%
 
  
  
  
  
Number of accounting units
     
1
 
  
 
—  
 
  
 
—  
 
  
 
1
  
Carrying value including goodwill (
in thousands
)
     
1,748
 
  
 
—  
 
  
 
—  
 
  
 
278
  
Schedule of Assumptions Used The key estimates and assumptions used for our enterprise valuations were as follows:
 
Publishing Enterprise Valuations
 
December 31, 2021
 
June 30, 2022
 
September 30, 2022
 
December 31, 2022
Risk adjusted discount rate
    9.5%   10.5%   10.5%  
10.5%
Operating margin ranges
   
2.4% - 5.2%
  
0.5% - 3.0%
  
0.5% - 2.7%
  
(9.0)% -4.9%
Long-term revenue growth rates
    0.5%   0.5%   0.5%  
0.5%