2 .	Acquisitions

January 13, 2017,

we acquired KTVF-TV (NBC), KXDF-TV (CBS), and KFXF-TV (FOX) in the Fairbanks, Alaska television market (DMA

202

), 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.

May 1, 2017,

we acquired WDTV-TV (CBS) and WVFX-TV (FOX/CW) in the Clarksburg-Weston, West Virginia television market (DMA

169

) from Withers Broadcasting Company of West Virginia (the “Clarksburg Acquisition”) for a total purchase price of

$26.5

million. On

June 1, 2016,

we began operating the stations, subject to the control of the seller, under a local marketing agreement (“LMA”) that terminated upon completion of the acquisition.

May 1, 2017,

we acquired WABI-TV (CBS/CW) in the Bangor, Maine television market (DMA

156

) and WCJB-TV (ABC/CW) in the Gainesville, Florida television market (DMA

161

) from Community Broadcasting Service and Diversified Broadcasting, Inc. (collectively, the “Diversified Acquisition”) for a total purchase price of

$85.0

million. On

April 1, 2017,

we began operating these stations, subject to the control of the seller, under an LMA that terminated upon completion of the acquisition.

We refer to the

seven

stations acquired (excluding the stations acquired in the Clarksburg Acquisition) during the

first

six

-months of

2017

and the stations we commenced operating under an LMA during that period as the

“2017

Acquisitions.”

We refer to the

stations acquired in

2016,

and that we retained in those acquisitions, including the stations in the Clarksburg Acquisition that we commenced operating under an LMA on

June 1, 2016,

as the

“2016

Acquisitions.”

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

2017

Acquisitions and the Clarksburg Acquisition are summarized as follows (in thousands):

	Acquisition
	Fairbanks			Media General			Clarksburg			Diversified			Total

Current assets	$	122		$	666		$	462		$	361		$	1,611
Property and equipment		2,650			20,471			4,133			12,329			39,583
Goodwill		471			85,997			3,222			35,486			125,176
Broadcast licenses		2,228			149,846			17,003			26,219			195,296
Other intangible assets		2,702			13,398			2,234			11,051			29,385
Other non-current assets		71			282			51			27			431
Current liabilities		(140	)		(695	)		(554	)		(423	)		(1,812	)
Other long-term liabilities		(84	)		-			(51	)		(50	)		(185	)

Total	$	8,020		$	269,965		$	26,500		$	85,000		$	389,485

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

$21.5

million, advertising client relationships of

$4.1

million and favorable income leases of

$2.5

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

5.2

years for retransmission agreements,

4.2

years for advertising client relationships and

12.6

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

$125.2

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 include the results of each acquisition from the date of the respective transaction. Revenue and operating income attributable to the

2017

Acquisitions and included in our consolidated statements of operations for the

six

-months ended

June 30, 2017

were

$31.8

million and

$15.7

million, respectively. In connection with the

2017

Acquisitions we incurred a total of

$1.0

million of transaction related costs during the

six

-months ended

June 30, 2017,

primarily related to legal, consulting and other professional fees. Revenue and operating income attributable to the

2016

Acquisitions and included in our consolidated statements of operations for the

six

-months ended

June 30, 2016

were

$50.7

million and

$19.0

million, respectively.