Goodwill (Tables)
|
12 Months Ended |
Dec. 31, 2018 |
|---|
| Schedule of Changes in Goodwill |
The following table presents the changes in goodwill including
business acquisitions as described in
Note 3—Acquisitions and Recent Transactions.
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31,
|
|
| |
|
2017
|
|
|
2018
|
|
| |
|
(Dollars in
thousands) |
|
|
Balance, beginning of period before cumulative loss on
impairment,
|
|
$ |
27,642 |
|
|
$ |
28,453 |
|
|
Accumulated loss on impairment
|
|
|
(2,029 |
) |
|
|
(2,029 |
) |
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period after cumulative loss on
impairment
|
|
|
25,613 |
|
|
|
26,424 |
|
|
|
|
|
|
|
|
|
|
|
Acquisitions of radio stations
|
|
|
14 |
|
|
|
7 |
|
|
Acquisitions of digital media entities
|
|
|
810 |
|
|
|
986 |
|
|
Disposition of radio stations
|
|
|
— |
|
|
|
(628 |
) |
|
Sale of income generating broadcast business
|
|
|
(13 |
) |
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period before cumulative loss on impairment
|
|
|
28,453 |
|
|
|
28,818 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated loss on impairment
|
|
|
(2,029 |
) |
|
|
(2,029 |
) |
|
|
|
|
|
|
|
|
|
|
Ending period balance
|
|
$ |
26,424 |
|
|
$ |
26,789 |
|
|
|
|
|
|
|
|
|
|
|
| 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, 2018
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
|
|
|
2 |
|
|
|
3 |
|
|
|
6 |
|
|
|
6 |
|
|
Carrying value including goodwill (in thousands)
|
|
$ |
49,525 |
|
|
$ |
41,244 |
|
|
$ |
100,121 |
|
|
$ |
78,471 |
|
|
| Schedule of Assumptions Used |
The key estimates and assumptions used for our enterprise
valuations are as follows:
|
|
|
|
|
|
Broadcast Markets Enterprise Valuations
|
|
December 31,
2017
|
|
December 31, 2018
|
|
Risk-adjusted discount rate
|
|
9.0% |
|
9.0% |
|
Operating profit margin ranges
|
|
(7.8%) - 36.2% |
|
(4.1%) - 45.1% |
|
Long-term revenue growth rates
|
|
1.9% |
|
0.5% - 1.1%
|
|
| Broadcast Networks Enterprise Valuations [Member] |
|
| Schedule of Assumptions Used |
The key estimates and assumptions used for our enterprise
valuations are as follows:
|
|
|
|
|
|
Broadcast Network Valuations
|
|
December 31, 2017
|
|
December 31,
2018
|
|
Risk adjusted discount rate
|
|
— |
|
10.0% |
|
Operating profit margin ranges
|
|
— |
|
14.8% - 15.7% |
|
Long-term revenue growth rates
|
|
— |
|
0.5% |
|
| 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 our accounting
units, including goodwill.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Digital Media Entities as of December 31, 2018
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 |
|
|
|
2 |
|
|
|
—
|
|
|
|
1 |
|
|
Carrying value including goodwill (in thousands)
|
|
$ |
361 |
|
|
$ |
9,836 |
|
|
$ |
—
|
|
|
$ |
27,821 |
|
|
| Schedule of Assumptions Used |
The key estimates and assumptions used for our enterprise
valuations are as follows:
|
|
|
|
|
|
Digital Media Enterprise Valuations
|
|
December 31, 2017
|
|
December 31, 2018
|
|
Risk adjusted discount rate
|
|
10.0% |
|
10.0% |
|
Operating profit margin ranges
|
|
8.0% - 36.0% |
|
8.5% - 17.2% |
|
Long-term revenue growth rates
|
|
1.9% - 2.0% |
|
1.0% |
|
| 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 accounting
units, including goodwill.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Publishing Entities as of December 31, 2018
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)
|
|
$ |
—
|
|
|
$ |
3,976 |
|
|
$ |
—
|
|
|
$ |
847 |
|
|
| Schedule of Assumptions Used |
The key estimates and assumptions used for our enterprise
valuations are as follows:
|
|
|
|
|
|
Publishing Enterprise Valuations
|
|
December 31, 2017
|
|
December 31, 2018
|
|
Risk adjusted discount rate
|
|
10.0% |
|
10.0% |
|
Operating margin ranges
|
|
5.0% - 5.5% |
|
4.0% - 5.0% |
|
Long-term revenue growth rates
|
|
1.9% |
|
1.0% |
|
| Broadcast Licenses [Member] |
|
| 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, 2018
Percentage Range By Which 2017 Estimated Fair Value
Exceeds 2018 Carrying Value |
|
| |
|
£25% |
|
|
>26%-50% |
|
|
>51% to 75% |
|
|
> +than 76% |
|
|
Number of accounting units
|
|
|
9 |
|
|
|
1 |
|
|
|
4 |
|
|
|
2 |
|
|
Broadcast license carrying value (in thousands)
|
|
$ |
200,098 |
|
|
$ |
14,743 |
|
|
$ |
52,051 |
|
|
$ |
9,558 |
|
|
| Station Operating Income [Member] | Broadcast Licenses [Member] |
|
| 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 16 remaining market clusters:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Geographic Market Clusters as of
December 31, 2018
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% |
|
|
>51% to 75% |
|
|
> +than 76% |
|
|
Number of accounting units
|
|
|
—
|
|
|
|
2 |
|
|
|
—
|
|
|
|
14 |
|
|
Broadcast license carrying value (in thousands)
|
|
$ |
—
|
|
|
$ |
7,692 |
|
|
$ |
—
|
|
|
$ |
95,039 |
|
|