Acquisitions

January

13,

2017,

we acquired KTVF-TV (NBC), KXDF-TV (CBS), and KFXF-TV (FOX) in the Fairbanks, Alaska television market, from Tanana Valley Television Company and Tanana Valley Holdings, LLC for

$8.0

million (the “Fairbanks Acquisition”), using cash on hand.

As described above, on

January

17,

2017,

we completed the Media General Acquisition, for an adjusted purchase price of

$269.9

million using cash on hand.

We refer to the acquisitions completed through

March

31,

2017,

collectively, as the

“2017

Acquisitions.” The preliminary fair value estimates of the assets acquired, liabilities assumed and resulting goodwill of the

2017

Acquisitions are summarized as follows (in thousands):

	Acquisition
	Fairbanks			Media General			Total

Current assets	$	122		$	666		$	788
Property and equipment		2,650			20,471			23,121
Goodwill		471			85,919			86,390
Broadcast licenses		2,228			149,846			152,074
Other intangible assets		2,702			13,398			16,100
Other non-current assets		71			282			353
Current liabilities		(140	)		(695	)		(835	)
Other long-term liabilities		(84	)		-			(84	)

Total	$	8,020		$	269,887		$	277,907

Amounts in the table above are based upon management’s preliminary estimates of the fair values using valuation techniques including income, cost and market approaches. The fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates, and estimated discount rates.

Property and equipment are being depreciated over their estimated useful lives ranging from

three

years to

years.

Other intangible assets represent primarily the estimated fair values of retransmission agreements of

$13.8

million and favorable income leases of

$1.5

million. These intangible assets are being amortized over their estimated useful lives of

5.0

years for retransmission agreements and

13.4

years for favorable income leases.

Goodwill is calculated as the excess of the consideration transferred over the fair value of the identifiable net assets acquired and liabilities assumed, and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce, as well as future synergies that we expect to generate from each acquisition. We have preliminarily recorded

$86.4

million of goodwill related to

2017

Acquisitions. The use of different estimates or assumptions could result in materially different allocations. The goodwill recognized related to these acquisitions is deductible for income tax purposes.

Our consolidated results of operations for the

three

-months ended

March

31,

2017

include the results of the

2017

Acquisitions from the date of each transaction. Revenue and operating income attributable thereto and included in our consolidated statements of operations were

$10.9

million and

$2.8

million, respectively. In connection with the

2017

Acquisitions we incurred a total of

$0.6

million of transaction related costs during the

three

-months ended

March

31,

2017,

primarily related to legal, consulting and other professional fees.