Franchise Operating Rights & Goodwill	6 Months Ended
Jun. 30, 2020
Franchise Operating Rights & Goodwill
Franchise Operating Rights & Goodwill	Note 5. Franchise Operating Rights and Goodwill As of June 30, 2020, the Company determined that due to modifications to our internal financial forecasts, which reflect an accelerated shift towards broadband centric consumer buying preferences, as well as potential future impacts of the COVID-19 pandemic, a triggering event had occurred that required an interim impairment analysis for goodwill and franchise operating rights. The Company performed both quantitative and qualitative analysis to determine if the carrying amounts of franchise operating rights were recoverable and a qualitative analysis to determine if the carrying amount of goodwill was recoverable. For the quantitative analysis of the franchise operating rights, the Company utilized the multi-period excess earnings method, an income approach, which calculates the estimated fair value of an intangible asset by discounting its future cash flows. The estimated fair value is determined based on discrete discounted future cash flows attributable to each franchise operating right intangible asset using assumptions consistent with internal forecasts. Assumptions key in estimating fair value under this method include, but are not limited to, revenue and subscriber growth rates (less anticipated customer churn), operating expenditures, capital expenditures (including any build out), market share achieved or market multiples, contributory asset charge rates, tax rates and a discount rate. The discount rate used in the model represents a weighted average cost of capital and the perceived risk associated with an intangible asset such as the Company’s franchise operating rights. Based on the results of the analysis, the Company concluded that the fair value of both goodwill and franchise operating rights were in excess of their respective carrying values. If the Company’s assumptions, including those involving the financial projections and impacts of the COVID-19 pandemic are not achieved, it may be required to record impairment charges in future periods, whether in connection with the Company’s next annual impairment analysis, or on an interim basis. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such a charge would be material.

Franchise Operating Rights & Goodwill

6 Months Ended

Jun. 30, 2020

Franchise Operating Rights & Goodwill

Note 5. Franchise Operating Rights and Goodwill

As of June 30, 2020, the Company determined that due to modifications to our internal financial forecasts, which reflect an accelerated shift towards broadband centric consumer buying preferences, as well as potential future impacts of the COVID-19 pandemic, a triggering event had occurred that required an interim impairment analysis for goodwill and franchise operating rights. The Company performed both quantitative and qualitative analysis to determine if the carrying amounts of franchise operating rights were recoverable and a qualitative analysis to determine if the carrying amount of goodwill was recoverable.

For the quantitative analysis of the franchise operating rights, the Company utilized the multi-period excess earnings method, an income approach, which calculates the estimated fair value of an intangible asset by discounting its future cash flows. The estimated fair value is determined based on discrete discounted future cash flows attributable to each franchise operating right intangible asset using assumptions consistent with internal forecasts. Assumptions key in estimating fair value under this method include, but are not limited to, revenue and subscriber growth rates (less anticipated customer churn), operating expenditures, capital expenditures (including any build out), market share achieved or market multiples, contributory asset charge rates, tax rates and a discount rate. The discount rate used in the model represents a weighted average cost of capital and the perceived risk associated with an intangible asset such as the Company’s franchise operating rights.

Based on the results of the analysis, the Company concluded that the fair value of both goodwill and franchise operating rights were in excess of their respective carrying values.

If the Company’s assumptions, including those involving the financial projections and impacts of the COVID-19 pandemic are not achieved, it may be required to record impairment charges in future periods, whether in connection with the Company’s next annual impairment analysis, or on an interim basis. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such a charge would be material.