IMPAIRMENT OF GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS (Tables)
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12 Months Ended |
Dec. 31, 2016 |
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| Results of Impairment Testing Under the Income Approach |
The table below presents the results of our impairment testing under the income approach for the 2016 annual testing period.
| Market Cluster | | Excess Fair Value
2016 Estimate | | Atlanta, GA | | 6.6% | | Cleveland, OH | | (6.4%) | | Columbus, OH | | 47.1% | | Dallas, TX | | (1.0%) | | Denver, CO | | 765.2 | | Detroit, MI | | (3.3%) | | Honolulu, HI | | 146.40% | | Houston, TX | | 1,103.4% | | Little Rock | | 345.4% | | Los Angeles, CA | | 390.7% | | Louisville, KY | | 14.6% | | Miami FL | | 29.1% | | Nashville, TN | | 193.0% | | New York, NY | | 466.5% | | Omaha NE | | 22.5% | | Philadelphia, PA | | 86.3% | | Phoenix, AZ | | 83.4% | | Pittsburgh, PA | | 348.4% | | Portland, OR | | (9.6%) | | San Antonio, TX | | 257.2% | | San Diego, CA | | 37.8% | | San Francisco, CA | | 21.8% | | Seattle, WA | | 309.6% | | St Louis | | 261.2% | | Washington, D.C. | | 107.2% |
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| Key Estimates and Assumptions |
The key estimates and assumptions are as follows:
| Mastheads | | December 31, 2014 | | December 31, 2015 | | December 31, 2016 | | | Risk-adjusted discount rate | | 8.0% | | 8.0% | | 9.5% | | | Projected revenue growth ranges | | (4.8%) 1.4% | | 2.1% 2.9% | | (4.3%) 1.2% | | | Royalty rate | | 3.0% | | 3.0% | | 3.0% | |
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| Enterprise Valuation [Member] |
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| Schedule of Assumptions Used |
The key estimates and assumptions used for our enterprise valuations are as follows:
| | | December 31, 2014 | | December 31, 2015 | | December 31, 2016 | | | Enterprise Valuations | | Broadcast Markets | | Broadcast Markets | | Broadcast Markets | | | Risk-adjusted discount rate | | 8.0% | | 8.0% | | 8.5% | | | Operating profit margin ranges | | 8.4% - 46.1% | | 49.7% | | (18.5%) 43.3% | | | Long-term revenue market growth rate ranges | | 1.0% - 5.0% | | 2.0% | | 1.9% | | |
| Digital Media [Member] |
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| 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 accounting units, including goodwill.
| | | Digital Media Entities as of December 31, 2016 | | | | | 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 | | | | 1 | | | Carrying value including goodwill (in thousands)
| | $ | 811 | | | $ | 3,910 | | | $ | 28,285 | | | $ | 941 | |
| | | Digital Media Entities as of December 31, 2015 | | | | | 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 | | | | - | | | | | | | | 4 | | | Carrying value including goodwill (in thousands)
| | $ | 4,488 | | | $ | - | | $ | | | | | $ | 29,126 | |
| | | 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 [Member] | Enterprise Valuation [Member] |
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| Schedule of Assumptions Used |
| Enterprise Valuation | | December 31, 2014 | | December 31, 2015 | | December 31, 2016 | | Risk adjusted discount rate | | 8.0% | | 8.0% - 9.0% | | 8.5% - 9.5% | | Operating profit margin ranges | | (7.4%) - 34.9% | | (8.9%) - 13.8% | | (20.3%) - 8.2% | | Long-term revenue market growth rate ranges | | 2.50% | | 2.0 - 3.0% | | 1.9% - 2.5% |
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| Publishing [Member] |
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| 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 accounting units, including goodwill.
| | | Publishing Accounting units as of December 31, 2016 | | | | | 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)
| | $ | 1,360 | | | $ | | | | $ | | | | $ | | |
| | | Publishing Accounting units as of December 31, 2015 | | | | | 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)
| | $ | 854 | | | $ | | | | $ | | | | $ | 2,453 | |
| | | 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 [Member] | Enterprise Valuation [Member] |
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| Schedule of Assumptions Used |
The key estimates and assumptions used for our enterprise valuations are as follows:
|
Enterprise Valuation
| |
December 31,
2014
| |
December 31,
2014
| |
December 31, 2016
| | | Risk adjusted discount rate | | 8.0% | | 8.0% | |
8.5%
| | | Operating margin ranges | | 2.4% - 5.9% | | 4.2% 6.2% | |
3.5% 5.7%
| | | Long-term revenue market growth rates | | 1.5% | | 2.0% | |
1.9%
| |
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| Goodwill-Broadcast [Member] |
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| 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, 2016 | | | | | 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 | | | 3 | | | | 3 | | | | 6 | | | | 7 | | | Carrying value including goodwill (in thousands)
| | | 93,978 | | | $ | 27,714 | | | $ | 124,464 | | | $ | 71,270 | |
| | | Broadcast Market Clusters as of December 31, 2015 | | | | | 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 | | | 3 | | | | 3 | | | | 2 | | | | 11 | | | Carrying value including goodwill (in thousands)
| | $ | 56,179 | | | $ | 52,164 | | | $ | 37,570 | | | $ | 169,907 | |
| | | 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 | | | $ | 84,693 | | |
| Schedule of Assumptions Used |
The key estimates and assumptions used for our enterprise valuations for each period tested are as follows:
| | | December 31, 2015 | | December 31, 2016 | | | Enterprise Valuations | | Broadcast Networks | | Broadcast Networks | | | Risk-adjusted discount rate | | 9.0% | | 9.5% | | | Operating profit margin ranges | | (74.1) (97.5%) | | 1.0% 24.4% | | | Long-term revenue market growth rates | | 2.0% | | 1.9% | |
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| Broadcast Licenses [Member] |
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| Carrying Value And Fair Value Of Financial Instrument Disclosure |
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, 2016 | | | | | Percentage Range By Which 2015 Estimated Fair Value Exceeds 2016 Carrying Value | | | | | = 25% | | | >26%-50% | | | >50% to 75% | | | > than 75% | | | Number of accounting units | | | 3 | | | | 4 | | | | 1 | | | | 3 | | | Broadcast license carrying value (in thousands) | | $ | 108,374 | | | $ | 49,738 | | | $ | 27,878 | | | $ | 15,650 | |
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| Schedule of Assumptions Used |
The key estimates and assumptions used in the start-up income valuation for our broadcast licenses were as follows:
| Broadcast Licenses | | December 31, 2014 | | December 31, 2015 | | December 31, 2016 | | | Risk-adjusted discount rate | | 8.0% | | 8.0% | | 8.5% | | | Operating profit margin ranges | | (13.9%) - 30.8% | | (13.9%) - 30.8% | | (13.9%) - 30.8% | | | Long-term market revenue growth rate ranges | | 1.5% - 2.5% | | 2.0% | | 1.9% | | |
| Broadcast Licenses [Member] | Station Operating Income [Member] |
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| Carrying Value And Fair Value Of Financial Instrument Disclosure |
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 twenty three market clusters:
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| Geographic Market Clusters as of December 31, 2016 | |
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| Tested due to length of time from prior valuation Percentage Range by Which Prior
Valuation Exceeds 2016 Carrying Value | |
|
| = 25% | | >26%-50% | | >50% to 100% | | > than 100% | | Number of accounting units |
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13
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4
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2
| |
4
| | Broadcast license carrying value (in thousands) | |
$
|
166,107
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$
|
10,635
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$
|
9,904
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$
|
6,771
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