IMPAIRMENT OF GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS (Tables)
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12 Months Ended |
Dec. 31, 2017 |
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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 2017 annual testing period.
| Market Cluster | | Excess Fair Value
2017 Estimate | | | Atlanta, GA | | | 3.5 | % | | Boston, MA | | | 31.6 | % | | Chicago, IL | | | 63.0 | % | | Cleveland, OH | | | 4.4 | % | | Col Springs, CO | | | 89.9 | % | | Dallas, TX | | | 1.3 | % | | Detroit, MI | | | 5.3 | % | | Greenville, SC | | | 92.0 | % | | Louisville, KY | | | 22.3 | % | | Miami FL | | | 71.3 | % | | Minneapolis, MN | | | 68.2 | % | | Omaha NE | | | 27.3 | % | | Orlando FL | | | 55.5 | % | | Portland, OR | | | 3.3 | % | | Sacramento, CA | | | 15.9 | % | | San Francisco, CA | | | 3.1 | % | | Tampa, FL | | | 22.9 | % |
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| Key Estimates and Assumptions |
The key estimates and assumptions are as follows:
| Mastheads | | December 31, 2015 | | December 31, 2016 | | December 31, 2017 | | | Risk-adjusted discount rate | | 8.0% | | 9.5% | | 10.0% | | | Projected revenue growth ranges | | 2.1% 2.9% | | (4.3)% 1.2% | | (3.2)% 0.9% | | | Royalty rate | | 3.0% | | 3.0% | | 3.0% | |
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| Broadcast Markets Enterprise Valuations [Member] |
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| Schedule of Assumptions Used |
The key estimates and assumptions used for our enterprise valuations are as follows:
| Broadcast Markets Enterprise Valuations | | December 31, 2015 | | December 31, 2016 | | December 31, 2017 | | | Risk-adjusted discount rate | | 8.0% | | 8.5% | | 9.0% | | | Operating profit margin ranges | | 49.7% | | (18.5)% 43.3% | | (7.8)% 36.2% | | | Long-term revenue market growth rate ranges | | 2.0% | | 1.9% | | 1.9% | | |
| Digital Media Enterprise Valuations [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, 2017 | | | | | 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 | | | 2 | | | Carrying value including goodwill (in thousands) | | $ | 448 | | $ | - | | $ | 3,585 | | $ | 28,343 | |
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| Schedule of Assumptions Used |
The key estimates and assumptions used in the valuation of our digital media entities for each testing period are as follows:
| Digital Media Enterprise Valuations | | December 31, 2015 | | December 31, 2016 | | December 31, 2017 | | | Risk adjusted discount rate | | 8.0% - 9.0% | | 8.5% - 9.5% | | 10.0% | | | Operating profit margin ranges | | (8.9)% - 13.8% | | (20.3)% - 8.2% | | 8.0% 36.0% | | | Long-term revenue market growth rate ranges | | 2.0 - 3.0% | | 1.9% - 2.5% | | 1.9% - 2.0% | | |
| Publishing Enterprise Valuations [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 Entities as of December 31, 2017 | | | | | 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) | | $ | - | | $ | - | | $ | - | | $ | 2,993 | | |
| Schedule of Assumptions Used |
The key estimates and assumptions used for our enterprise valuations are as follows:
| Publishing Enterprise Valuations | | December 31, 2015 | | December 31, 2016 | | December 31, 2017 | | | Risk adjusted discount rate | | 8.0% | | 8.5% | | 10.0% | | | Operating margin ranges | | 4.2% 6.2% | | 3.5% 5.7% | | 5.0% 5.5% | | | Long-term revenue market growth rates | | 2.0% | | 1.9% | | 1.9% | | |
| Goodwill-Broadcast [Member] |
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| Schedule of Assumptions Used |
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, 2017 | | | | | 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 | | | 2 | | | 7 | | | 7 | | | Carrying value including goodwill (in thousands) | | | 83,729 | | $ | 25,053 | | $ | 120,849 | | $ | 69,981 | | |
| 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, 2017 | | | | | Percentage Range By Which 2016 Estimated Fair Value Exceeded 2017 Carrying Value | | | | | ≤ 25% | | >26%-50% | | >50% to 75% | | > than 75% | | | Number of accounting units | | | 8 | | | 2 | | | - | | | 15 | | | Broadcast license carrying value (in thousands) | | $ | 174,287 | | $ | 7,692 | | $ | - | | $ | 105,641 | | |
| 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, 2015 | | December 31, 2016 | | December 31, 2017 | | | Risk-adjusted discount rate | | 8.0% | | 8.5% | | 9.0% | | | Operating profit margin ranges | | (13.9)% - 30.8% | | (13.9)% - 30.8% | | (13.9)% - 30.8% | | | Long-term market revenue growth rate ranges | | 2.0% | | 1.9% | | 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 nine market clusters:
| | | Geographic Market Clusters as of December 31, 2017 | | | | | Tested due to SOI Multiple and length of time from prior valuation Percentage Range
by Which Prior Valuation Exceeded 2017 Carrying Value | | | | | ≤ 25% | | >26%-50% | | >50% to 100% | | > than 100% | | | Number of accounting units | | | - | | | 4 | | | 1 | | | 4 | | | Broadcast license carrying value (in thousands) | | $ | - | | $ | 49,765 | | $ | 27,878 | | $ | 27,372 | | |