Property Plant and Equipment

9 Months Ended

Sep. 30, 2017

Property plant and equipment

Property plant and equipment

Note 3. Property Plant and Equipment

On September 20, 2017, Hurricane Maria made landfall in Puerto Rico, causing damage to WAPA’s infrastructure. WAPA suffered limited damage to its studios and headquarters and to two of its three broadcast transmission towers, but the third transmission tower was completely destroyed.  Accordingly, based on our assessment, we have recorded a $0.5 million fixed asset impairment charge related to the net book value of the identified damaged assets in the quarter ended September 30, 2017.  A significant portion of the damaged assets have been in service for more than 10 years and, as such, are largely fully depreciated.  We anticipate the replacement cost will be well in excess of the net book value, though we expect insurance will cover most of the replacement costs, subject to deductibles and other costs. There can be no assurances of the timing and amount of proceeds we may recover under our insurance policies.   We have not recognized any potential insurance recoveries related to these assets.