Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

10. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill consisted of the following:

	December 31, 2017
(in thousands)	Gross		Accumulated Impairments⁽¹⁾			Net
Goodwill	$	1,922,462	$	(102,769	)	$	1,819,693
(1) $19.7 million and $83.1 million of accumulated impairments to goodwill are within U.S. Networks and International Networks, respectively.

	December 31, 2016
(in thousands)	Gross		Accumulated Impairments⁽¹⁾			Net
Goodwill	$	1,744,433	$	(102,264	)	$	1,642,169
(1) $19.7 million and $82.6 million of accumulated impairments to goodwill are within U.S. Networks and International Networks, respectively.

Goodwill activity by business segment consisted of the following:

(in thousands) Goodwill	U.S. Networks		International Networks			Corporate and Other		Total
December 31, 2015	$	510,484	$	1,294,264		$	-	$	1,804,748
Purchase price allocation adjustments		-		(46,124	)		-		(46,124	)
Additions - business acquisitions		-		450			-		450
Write-down/impairment		-		(57,878	)		-		(57,878	)
Foreign currency translation		-		(59,027	)		-		(59,027	)
December 31, 2016	$	510,484	$	1,131,685		$	-	$	1,642,169
Additions - business acquisitions		10,320		-			-		10,320
Write-down/impairment		-		(505	)		-		(505	)
Foreign currency translation		-		167,709			-		167,709
December 31, 2017	$	520,804	$	1,298,889		$	-	$	1,819,693

To determine the fair value of our reporting units, we used market data and discounted cash flow analyses. As the primary determination of fair value is determined using a discounted cash flow model, the resulting fair value is considered a Level 3 measurement. During the annual impairment analysis in 2016, management identified goodwill that was deemed to be impaired based upon economic conditions that differ from those forecasted in previous periods. Goodwill write-down totaled $0.5 million related to the sale of a TVN-owned entity in 2017 and $57.9 million related to our EMEA and APAC reporting units, which were completely written down in 2016 totaled $57.9 million, These write-downs are included within goodwill write-down in our consolidated statements of operations.

Intangible assets consisted of the following:

	December 31, 2017
(in thousands) Intangible assets	Gross		Accumulated Amortization			Net
Acquired network distribution rights	$	747,941	$	(278,657	)	$	469,284
Customer and advertiser lists		233,451		(117,134	)		116,317
Copyrights and other tradenames		422,575		(98,058	)		324,517
Broadcast licenses		137,773		(16,058	)		121,715
Acquired rights and other		120,160		(42,321	)		77,839
Total	$	1,661,900	$	(552,228	)	$	1,109,672

	December 31, 2016
(in thousands) Intangible assets	Gross		Accumulated Amortization			Net
Acquired network distribution rights	$	717,834	$	(232,856	)	$	484,978
Customer and advertiser lists		209,314		(93,232	)		116,082
Copyrights and other tradenames		362,236		(61,286	)		300,950
Broadcast licenses		114,832		(7,861	)		106,971
Acquired rights and other		119,885		(36,184	)		83,701
Total	$	1,524,101	$	(431,419	)	$	1,092,682

Intangible assets activity by business segment consisted of the following:

(in thousands) Intangible Assets	U.S. Networks			International Networks			Corporate and Other		Total
December 31, 2015	$	484,599		$	778,065		$	-	$	1,262,664
Additions		-			11,634			-		11,634
Amortization		(40,220	)		(67,279	)		-		(107,499	)
Write-down/impairment		-			(16,330	)		-		(16,330	)
Foreign currency translation		-			(57,787	)		-		(57,787	)
December 31, 2016	$	444,379		$	648,303		$	-	$	1,092,682
Additions		231			-			-		231
Amortization		(40,691	)		(52,825	)		-		(93,516	)
Write-down/impairment		-			(10,564	)		-		(10,564	)
Foreign currency translation		-			120,839			-		120,839
December 31, 2017	$	403,919		$	705,753		$	-	$	1,109,672

In 2017, we recognized a $10.5 million impairment on a network distribution right in preparation for the sale of this intangible asset.

In 2016, we recognized a $15.9 million impairment on the long-lived intangible assets of our APAC reporting unit, within International Networks, which was recognized as accelerated amortization and recorded in amortization in our statements of operations and as a reduction to intangible assets, net on our consolidated balance sheets.

Separately acquired intangible assets reflect the acquisition of certain rights that will expand our opportunity to earn future revenues. Cash payments for these acquired rights totaled $9.9 million, $9.9 million and $11.0 million in 2017, 2016 and 2015, respectively, and are included in other, net within investing activities in our consolidated statements of cash flows.

Amortization expense associated with intangible assets for each of the next five years is expected to be as follows:

(in thousands)	Estimated Amortization *
2018	$	99,442
2019	$	95,701
2020	$	91,759
2021	$	89,577
2022	$	77,966
Thereafter	$	655,227
* The functional currency of certain foreign subsidiaries differs from the USD, so these amounts are subject to change as exchange rates fluctuate.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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