|
IMPAIRMENT OF GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS (Tables)
|
12 Months Ended |
|
Dec. 31, 2013
|
| Qualitative Analysis for Annual Testing Period |
The table below
presents the results of our quantitative analysis for 17 market
clusters as of the 2013 annual testing period.
|
|
|
|
|
| |
|
Excess Fair Value |
|
|
Market
Cluster
|
|
2013
Estimate |
|
|
Atlanta, GA
|
|
|
13.6 |
% |
|
Boston, MA
|
|
|
6.9 |
% |
|
Chicago, IL
|
|
|
6.4 |
% |
|
Cleveland, OH
|
|
|
4.6 |
% |
|
Colorado Springs,
CO
|
|
|
82.5 |
% |
|
Columbus, OH
|
|
|
6.0 |
% |
|
Dallas, TX
|
|
|
10.9 |
% |
|
Detroit, MI
|
|
|
2.9 |
% |
|
Greenville, SC
(NEW)
|
|
|
8.5 |
% |
|
Honolulu, HI
|
|
|
6.3 |
% |
|
Los Angeles, CA
|
|
|
107.4 |
% |
|
Louisville, KY
|
|
|
8.0 |
% |
|
Minneapolis, MN
|
|
|
85.8 |
% |
|
Omaha, NE
|
|
|
1.1 |
% |
|
Phoenix, AZ
|
|
|
17.4 |
% |
|
Portland, OR
|
|
|
6.9 |
% |
|
Sacramento, CA
|
|
|
1.6 |
% |
|
| Fair Value of Mastheads Calculated by Discounted Cash Flow Method |
A discounted
cash flow method is applied to calculate the estimated fair value
of our mastheads, the key estimates and assumptions to which are as
follows:
|
|
|
|
|
|
|
|
|
|
|
| Mastheads |
|
December 31,
2011
|
|
Interim
June 30, 2012
|
|
December 31,
2012
|
|
Interim
June 30, 2013
|
|
December 31,
2013
|
|
Discount rate
|
|
8.5% |
|
8.5% |
|
8.5% |
|
9.0% |
|
9.5% |
|
Projected revenue growth
ranges
|
|
1.5% -2.50% |
|
1.5% -2.50% |
|
1.5% -3.0% |
|
1.0% -2.8% |
|
1.2% - 2.5% |
|
Royalty growth
rate
|
|
3.0% |
|
3.0% |
|
3.0% |
|
3.0% |
|
2.0% |
|
|
Enterprise Valuation
|
|
| Key Estimates and Assumptions Used for Valuations |
The key
estimates and assumptions used for our enterprise valuations are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
Enterprise
Valuation
|
|
December 31,
2011
|
|
Interim
June 30, 2012
|
|
December 31, 2012
|
|
Interim
June 30, 2013
|
|
December 31,
2013
|
| |
|
(Internet) |
|
(Publishing) |
|
(Internet & Publishing) |
|
(Publishing) |
|
(Publishing) |
|
Discount rate
|
|
13.5% |
|
8.5% |
|
8.5% - 13.5% |
|
9.0% |
|
9.5% |
|
Operating profit margin
ranges
|
|
18.4 - 22.0% |
|
1.4% - 7.5% |
|
0.5% - 22.0% |
|
0.9% - 6.0% |
|
(0.5%) - 6.0% |
|
Long-term revenue market
growth rate ranges
|
|
3.0% |
|
1.5% |
|
1.5% - 3.0% |
|
1.5% - 2.8% |
|
1.5% - 6.1% |
|
|
Broadcast licenses
|
|
| 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 exceeded the carrying value of
our broadcasting licenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Geographic Market Clusters as of December 31, 2013 |
|
| |
|
Percentage Range By Which 2012 Estimated Fair Value Exceeds
Carrying Value |
|
| |
|
£25% |
|
|
>26-30% |
|
|
>30% to 75% |
|
|
> than 75% |
|
|
Number of market
clusters
|
|
|
9 |
|
|
|
1 |
|
|
|
2 |
|
|
|
— |
|
|
Broadcast license carrying
value (in thousands)
|
|
$ |
217,111 |
|
|
$ |
18,501 |
|
|
$ |
13,577 |
|
|
$ |
— |
|
|
|
Broadcast licenses | 12 December 2011
|
|
| 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, 2011
|
|
December 31, 2012
|
|
December 31, 2013
|
|
Discount rate
|
|
9.0% |
|
9.0% |
|
9.0% |
|
Operating profit margin
ranges
|
|
3.8%—36.3% |
|
5.1%—35.5% |
|
4.1%—37.5% |
|
Long-term market revenue
growth rate ranges
|
|
1.0%—4.0% |
|
0.3%—15.0% |
|
1.0%—2.5% |
|
|
Goodwill-Broadcast
|
|
| 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, 2013 |
|
| |
|
Percentage Range By Which Estimated Fair Value Exceeds Carrying
Value Including Goodwill |
|
| |
|
£ 1% |
|
|
>10% to 20% |
|
|
>20% to 50% |
|
|
> than 50% |
|
|
Number of market
clusters
|
|
|
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 market
clusters
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
|
Carrying value including
goodwill (in thousands)
|
|
$ |
18,836 |
|
|
$ |
1,423 |
|
|
$ |
10,506 |
|
|
$ |
132,645 |
|
|
|
| |
|
Broadcast Market Clusters
as of December 31, 2011 |
|
| |
|
Percentage Range By Which
Estimated Fair
Value Exceeds Carrying Value Including Goodwill |
|
| |
|
£ 10% |
|
|
>10% to 20% |
|
|
>20% to 50% |
|
|
> than 50% |
|
|
Number of market
clusters
|
|
|
1 |
|
|
|
2 |
|
|
|
3 |
|
|
|
2 |
|
|
Carrying value including
goodwill (in thousands)
|
|
$ |
9,877 |
|
|
$ |
17,487 |
|
|
$ |
68,506 |
|
|
$ |
5,178 |
|
|
| Key Estimates and Assumptions Used for Valuations |
The key
estimates and assumptions used in the start-up income valuation of
our broadcast market clusters for each testing period are as
follows:
|
|
|
|
|
|
|
| |
|
December 31,
|
|
Goodwill
–Broadcast Market Clusters
|
|
2011
|
|
2012
|
|
2013
|
|
Discount rate
|
|
9.0% |
|
9.0% |
|
9.0% |
|
Operating profit margin
ranges
|
|
3.8% - 38.0% |
|
5.1% - 35.5% |
|
4.1% - 37.5% |
|
Long-term market revenue
growth rate ranges
|
|
1.0% - 4.0% |
|
0.3% - 15.0% |
|
1.0% - 2.5% |
|
|
Station Operating Income [Member] | Broadcast licenses
|
|
| Percentage Range by which Fair Value Exceeded Carrying Value |
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, 2013 |
|
| |
|
Percentage Range By Which SOI Estimated Fair Value Exceeds
Carrying Value |
|
| |
|
£5% |
|
|
>6-10% |
|
|
>11% to 40% |
|
|
>than 40% |
|
|
Number of market
clusters
|
|
|
8 |
|
|
|
1 |
|
|
|
4 |
|
|
|
8 |
|
|
Broadcast license carrying
value (in thousands)
|
|
$ |
51,850 |
|
|
$ |
2,402 |
|
|
$ |
61,354 |
|
|
$ |
21,835 |
|
|
|
Internet and Publishing
|
|
| 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Internet and 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
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
Carrying value including
goodwill (in thousands)
|
|
$ |
$28,707 |
|
|
$ |
— |
|
|
$ |
5,107 |
|
|
$ |
— |
|
|
|
| |
|
Internet and 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 |
|
|
|
2 |
|
|
Carrying value including
goodwill (in thousands)
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
28,722 |
|
|
$ |
2,103 |
|
|
|
| |
|
Internet and Publishing
Accounting units as of December 31, 2011 |
|
| |
|
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)
|
|
$ |
$1,123 |
|
|
$ |
3,764 |
|
|
$ |
22,757 |
|
|
$ |
(46 |
) |
|
| Key Estimates and Assumptions Used for Valuations |
The key
estimates and assumptions used for our enterprise valuations are as
follows:
|
|
|
|
|
|
|
| |
|
December 31, 2011 |
|
December 31, 2012 |
|
December 31, 2013 |
|
Enterprise
Valuations
|
|
Broadcast
Market
Clusters
|
|
Broadcast
Market
Clusters
|
|
Broadcast
Market
Clusters
|
|
Discount rate
|
|
9.0% |
|
9.0% |
|
9.0% |
|
Operating profit margin
ranges
|
|
6.8% - 45.4% |
|
16.9% - 49.2% |
|
11.9% - 44.7% |
|
Long-term revenue market
growth rate ranges
|
|
1.5% - 3.5% |
|
1.0% - 3.5% |
|
1.0% - 2.5% |
|