|
IMPAIRMENT OF GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS (Tables)
|
12 Months Ended |
|
Dec. 31, 2012
|
| Qualitative Analysis for Annual Testing Period |
The table below
presents the results of our quantitative analysis for the annual
testing period ending December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
Excess Fair Value |
|
|
Excess Fair Value |
|
|
Market
Cluster
|
|
2011 Estimate |
|
|
2012 Estimate |
|
|
Atlanta, GA
|
|
|
13.34 |
% |
|
|
7.54 |
% |
|
Chicago, IL
|
|
|
11.85 |
% |
|
|
6.38 |
% |
|
Cleveland, OH
|
|
|
9.03 |
% |
|
|
2.23 |
% |
|
Dallas, TX
|
|
|
7.83 |
% |
|
|
10.38 |
% |
|
Detroit, MI
|
|
|
10.17 |
% |
|
|
4.69 |
% |
|
Louisville, KY
|
|
|
24.08 |
% |
|
|
7.21 |
% |
|
Miami FL
|
|
|
14.93 |
% |
|
|
27.84 |
% |
|
Omaha, NE
|
|
|
14.36 |
% |
|
|
8.82 |
% |
|
Orlando, FL
|
|
|
19.36 |
% |
|
|
38.74 |
% |
|
Portland, OR
|
|
|
19.47 |
% |
|
|
11.00 |
% |
|
Sacramento, CA
|
|
|
10.46 |
% |
|
|
4.87 |
% |
|
Tampa, FL
|
|
|
16.17 |
% |
|
|
44.76 |
% |
|
| Fair Value of Mastheads Calculated by Discounted Cash Flow Method |
Under the
income approach, we utilize a discounted cash flow method to
calculate the estimated fair value of our mastheads, the key
estimates and assumptions to which are as follows:
|
|
|
|
|
|
|
|
|
|
Mastheads
|
|
December 31, 2010 |
|
December 31, 2011 |
|
Interim
June 30, 2012 |
|
December 31, 2012 |
|
Discount rate
|
|
8.5% |
|
8.5% |
|
8.5% |
|
8.5% |
|
Projected revenue growth
ranges
|
|
2.0% - 2.5% |
|
1.5% - 2.50% |
|
1.5% - 2.50% |
|
1.5% - 3.0% |
|
Royalty growth
rate
|
|
3.0% |
|
3.0% |
|
3.0% |
|
3.0% |
|
|
Internet and Publishing
|
|
| Key Estimates and Assumptions Used for Valuations |
The key
estimates and assumptions used for our enterprise valuations are as
follows:
|
|
|
| |
|
December 31,
2012 |
|
Enterprise
Valuations
|
|
Broadcast Market Clusters |
|
Discount rate
|
|
9.0% |
|
Operating profit margin
ranges
|
|
16.9% - 49.2% |
|
Long-term revenue market
growth rate ranges
|
|
1.0% - 3.5% |
|
|
Enterprise Valuation
|
|
| Key Estimates and Assumptions Used for Valuations |
The key
estimates and assumptions used for our enterprise valuations are as
follows:
|
|
|
|
|
|
|
| |
|
December 31,
|
|
Enterprise
Valuations
|
|
2010
|
|
2011
|
|
2012
|
|
Discount rate
|
|
8.5% |
|
13.5% |
|
8.5% - 13.5% |
|
Operating profit margin
ranges
|
|
2.0% - 8.4% |
|
18.4% - 22.0% |
|
0.5% - 22.0% |
|
Long-term revenue growth
rate ranges
|
|
2.0% |
|
3.0% |
|
1.5% - 3.0% |
|
|
Broadcast licenses
|
|
| Percentage Range by which Fair or Enterprise Value Exceeded Carrying Value |
The tables
below present the percentage within a range by which the estimated
fair value exceeded the carrying value of our broadcasting licenses
for each of our clusters:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Geographic Clusters as of
December 31, 2012 |
|
| |
|
Percentage Range By Which Fair Value Exceeds Carrying
Value |
|
| |
|
£25% |
|
|
>26-30% |
|
|
>30% to 75% |
|
|
>
than 75% |
|
|
Number of market
clusters
|
|
|
12 |
|
|
|
2 |
|
|
|
6 |
|
|
|
9 |
|
|
Broadcast license carrying
value (in thousands)
|
|
$ |
248,939 |
|
|
$ |
22,112 |
|
|
$ |
26,586 |
|
|
$ |
76,082 |
|
|
|
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
all of our broadcast licenses were as follows:
|
|
|
|
Broadcast
Licenses
|
|
December 31, 2011
|
|
Discount rate
|
|
9.0% |
|
Operating profit margin
ranges
|
|
3.8% -
38.0% |
|
Long-term market revenue
growth rate ranges
|
|
1.0% -
4.0% |
|
|
Broadcast licenses | 12 December 2012
|
|
| Key Estimates and Assumptions Used for Valuations |
The key
estimates and assumptions used in the Bond & Pecaro
start-up income valuation for these selected markets were as
follows:
|
|
|
|
Broadcast
Licenses
|
|
December 31, 2012
|
|
Discount rate
|
|
9.0% |
|
Operating profit margin
ranges
|
|
5.1% -
35.5% |
|
Long-term market revenue
growth rate ranges
|
|
0.3% -
15.0% |
|
|
Goodwill-Broadcast
|
|
| Key Estimates and Assumptions Used for Valuations |
The key
estimates and assumptions used in the start-up income valuation of
our broadcast markets for each testing period are as
follows:
|
|
|
|
|
|
|
| |
|
December 31, |
|
Goodwill
–Broadcast Market Clusters
|
|
2010 |
|
2011 |
|
2012 |
|
Discount rate
|
|
9.0% |
|
9.0% |
|
9.0% |
|
Operating profit margin
ranges
|
|
3.8% - 36.3% |
|
3.8% - 38.0% |
|
5.1% - 35.5% |
|
Long-term market revenue
growth rate ranges
|
|
0.25% - 3.5% |
|
1.0% - 4.0% |
|
0.3% -
15.0% |
|
| Percentage Range by which Fair or Enterprise Value Exceeded Carrying Value |
The tables
below present the percentage within a range by which the enterprise
value exceeded the carrying value of each of our clusters,
including goodwill:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Broadcast Market Clusters as of December 31, 2012 |
|
| |
|
Percentage Range By Which Enterprise Value
Exceeds
Carrying Value Including Goodwill
|
|
| |
|
< 10% |
|
|
>10% to 20% |
|
|
>20% to 50% |
|
|
> than 50% |
|
|
Number of market
clusters
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
5 |
|
|
Enterprise carrying value
(in thousands)
|
|
$ |
18,836 |
|
|
$ |
1,423 |
|
|
$ |
10,506 |
|
|
$ |
132,645 |
|
|
|
| |
|
Broadcast Market Clusters
as of December 31, 2011 |
|
| |
|
Percentage Range By Which Enterprise Value
Exceeds
Carrying Value Including Goodwill
|
|
| |
|
< 10% |
|
|
>10% to 20% |
|
|
>20% to 50% |
|
|
> than 50% |
|
|
Number of market
clusters
|
|
|
1 |
|
|
|
2 |
|
|
|
3 |
|
|
|
2 |
|
|
Enterprise carrying value
(in thousands)
|
|
$ |
9,877 |
|
|
$ |
17,487 |
|
|
$ |
68,506 |
|
|
$ |
5,178 |
|
|
|
| |
|
Broadcast Market Clusters as of December 31, 2010 |
|
| |
|
Percentage Range By Which Enterprise Value
Exceeds Carrying Value Including Goodwill
|
|
| |
|
< 10% |
|
|
>10% to 20% |
|
|
>20% to 50% |
|
|
> than 50% |
|
|
Number of market
clusters
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
3 |
|
|
Enterprise carrying value
(in thousands)
|
|
$ |
19,502 |
|
|
$ |
— |
|
|
$ |
66,871 |
|
|
$ |
7,295 |
|
|
|
Internet and Publishing
|
|
| Percentage Range by which Fair or Enterprise Value Exceeded Carrying Value |
The table below
presents the percentage within a range by which the enterprise
value exceeded the carrying value of our accounting units,
including goodwill.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Internet and Publishing
Accounting units as of December 31, 2012 |
|
| |
|
Percentage Range By Which Enterprise Value Exceeds Carrying
Value Including Goodwill |
|
| |
|
< 10% |
|
|
>10% to
20% |
|
|
>20% to 50% |
|
|
> than 50% |
|
|
Number of accounting
units
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
4 |
|
|
Enterprise carrying value
(in thousands)
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
28,722 |
|
|
$ |
2,103 |
|
|