Note 12 - Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

12. Goodwill and Intangible Assets

During the six-months ended June 30, 2019, we completed the 2019 Acquisitions that included the acquisition of goodwill, broadcast licenses and finite-lived intangible assets. See Note 3 “Acquisitions and Divestitures” for more information regarding these transactions. A summary of changes in our goodwill and other intangible assets, on a net basis, for the six-months ended June 30, 2019 is as follows (in millions):

	Net Balance at												Net Balance at
	December 31,												June 30,
	2018		Additions		Dispositions			Impairments		Amortization			2019
Goodwill	$	612	$	1,069	$	(229	)	$	-	$	-		$	1,452
Broadcast licenses		1,530		2,028		-			-		-			3,558
Finite-lived intangible assets		53		501		-			-		(57	)		497
Total intangible assets net of accumulated amortization	$	2,195	$	3,598	$	(229	)	$	-	$	(57	)	$	5,507

A summary of the changes in our goodwill, on a gross basis, for the six-months ended June 30, 2019, is as follows (in millions):

	As of										As of
	December 31,										June 30,
	2018			Additions		Dispositions			Impairments		2019
Goodwill, gross	$	711		$	1,069	$	(229	)	$	-	$	1,551
Accumulated goodwill impairmant		(99	)		-		-			-		(99	)
Goodwill, net	$	612		$	1,069	$	(229	)	$	-	$	1,452

As of June 30, 2019 and December 31, 2018, our intangible assets and related accumulated amortization consisted of the following (in millions):

	As of June 30, 2019							As of December 31, 2018
			Accumulated							Accumulated
	Gross		Amortization			Net		Gross		Amortization			Net
Intangible assets not currently subject to amortization:
Broadcast licenses	$	3,612	$	(54	)	$	3,558	$	1,583	$	(53	)	$	1,530
Goodwill		1,452		-			1,452		612		-			612
	$	5,064	$	(54	)	$	5,010	$	2,195	$	(53	)	$	2,142
Intangible assets subject to amortization:
Network affiliation agreements	$	54	$	(11	)	$	43	$	6	$	(6	)	$	-
Other definite lived intangible assets		596		(142	)		454		143		(90	)		53
	$	650	$	(153	)	$	497	$	149	$	(96	)	$	53
Total intangibles	$	5,714	$	(207	)	$	5,507	$	2,344	$	(149	)	$	2,195

Amortization expense for the six-months ended June 30, 2019 and 2018 was $57 million and $11 million, respectively. Based on the current amount of intangible assets subject to amortization, we expect that amortization expense for the remainder of 2019 will be approximately $56 million, and, for the succeeding five years, amortization expense will be approximately as follows: 2020, $99 million; 2021, $95 million; 2022, $91 million; 2023, $85 million; and 2024, $22 million. If and when acquisitions and dispositions occur in the future, actual amounts may vary materially from these estimates.

Impairment of goodwill and broadcast licenses

Our intangible assets are primarily comprised of broadcast licenses. There were no triggering events that required a test of our goodwill or intangible assets for impairment during the six-month period ended June 30, 2019.