Annual report pursuant to Section 13 and 15(d)

PROPERTY AND EQUIPMENT

v2.4.1.9
PROPERTY AND EQUIPMENT
 12 Months Ended
Dec. 31, 2014
PROPERTY AND EQUIPMENT [Abstract]  
PROPERTY AND EQUIPMENT

NOTE 5. PROPERTY AND EQUIPMENT

 

The following is a summary of the categories of our property and equipment:

 

As of December 31,
2013   2014  
(Dollars in thousands)
Land $ 29,748     $ 29,424  
Buildings     24,695       24,898  
Office furnishings and equipment     38,794       39,772  
Antennae, towers and transmitting equipment     76,454       78,628  
Studio and production equipment     29,819       30,202  
Computer software and website development costs     21,653       26,593  
Record and tape libraries     65       59  
Automobiles     1,139       1,205  
Leasehold improvements     17,414       19,634  
Construction-in-progress     4,362       4,307  
    $ 244,143     $ 254,722  
Less accumulated depreciation     (145,215 )     (155,495 )
    $ 98,928     $ 99,227  

 

Depreciation expense was approximately $12.6 million, $12.4 million and $12.3 million for the years ended December 31, 2014, 2013, and 2012, respectively, which includes depreciation of $53,000 for each of these years on a radio station tower valued at $0.8 million under a capital lease obligation. Accumulated depreciation associated with the capital lease was $411,000, $344,000 and $291,000 at December 31, 2014, 2013 and 2012, respectively.

 

Based on changes in management's planned usage, we classified land in Covina, California as held for sale as of June 2012. We evaluated the land for impairment in accordance with guidance for impairment of long-lived assets held for sale. We determined that the carrying value of the land exceeded the estimated fair value less costs to sell. We recorded an impairment charge of $5.6 million associated with the land based on our estimated sale price. In December 2012, after several purchase offers for the land were terminated, we obtained a third party valuation for the land. Based on the fair value determined by the third-party, we recorded an additional impairment charge of $1.2 million associated with the land.

 

There were no indications of impairment present during the period ending December 31, 2014 and it is our intent to continue to pursue the sale of this land.

 

The table below presents the fair value measurements used to value this asset.

 

Fair Value Measurements Using:
(Dollars in thousands)
Description As of December 31,
2014 		Quoted prices in
active markets
(Level 1) 		    Significant Other
Observable
Inputs (Level 2) 		    Significant
Unobservable
Inputs (Level 3) 		    Total Gains
(Losses) 		 
                     
Long-Lived Asset Held for Sale   $ 1,700                     $ 1,700     $ —