GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS

5. GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS, AND OTHER INTANGIBLE ASSETS:

Goodwill, which arises from the purchase price exceeding the assigned value of the net assets of an acquired business, represents the value attributable to unidentifiable intangible elements being acquired. Goodwill totaled $4,716 million and $2,124 million at December 31, 2019 and 2018, respectively.  The change in the carrying amount of goodwill was as follows (in millions):

	Local News and Marketing Services			Sports		Other			Consolidated
Balance at December 31, 2017	$	2,053		$	—	$	71		$	2,124
Measurement period adjustments related to prior year acquisitions	2			—		(2		)	—
Balance at December 31, 2018 (a)	$	2,055		—		$	69		$	2,124
Acquisition (b)	—			2,615		6			2,621
Assets held for sale	(29		)	—		—			(29		)
Balance at December 31, 2019 (a)	$	2,026		$	2,615	$	75		$	4,716

(a) Approximately $1 million of goodwill relates to consolidated VIEs as of December 31, 2019 and 2018.

(b) See Note 2. Acquisitions and Dispositions of Assets for discussion of acquisitions made during 2019.

For our annual goodwill impairment tests in 2019, 2018, and 2017, we concluded that it was more-likely-than-not that goodwill was not impaired for the reporting units in which we performed a qualitative assessment.  The qualitative factors reviewed during our annual assessments indicated stable or improving margins and favorable or stable forecasted economic conditions including stable discount rates and comparable or improving business multiples. For one reporting unit in 2019, we elected to perform a quantitative assessment and concluded that its fair value significantly exceeded the carrying value. Additionally, the results of prior quantitative assessments supported significant excess fair value over carrying value of our reporting units. We did not have any indicators of impairment in any interim period in 2019, 2018, or 2017, and therefore did not perform interim impairment tests for goodwill during those periods. Our accumulated goodwill impairment as of December 31, 2019 and 2018 was $0.4 million.

As of December 31, 2019 and 2018, the carrying amount of our indefinite-lived intangible assets was as follows (in millions):

	Local News and Marketing Services			Other		Consolidated
Balance at December 31, 2017 (b)	$	132		$	27	$	159
Disposition of assets (a)	(1		)	—		(1		)
Balance at December 31, 2018 (b) (c)	$	131		$	27	$	158
Balance at December 31, 2019 (b) (c)	$	131		$	27	$	158

(a) See Note 2. Acquisitions and Dispositions of Assets for discussion of divestitures made during 2018.

(b) Approximately $14 million of indefinite-lived intangible assets relate to consolidated VIEs as of December 31, 2019 and 2018.

(c) Our indefinite-lived intangible assets in our local news and marketing services segment relate to broadcast licenses and our indefinite-lived intangible assets in our other segment relate to trade names.

We did not have any indicators of impairment for our indefinite-lived intangible assets in any interim period in 2019 or 2018, and therefore did not perform interim impairment tests during those periods. We performed our annual impairment tests for indefinite-lived intangibles in 2019 and 2018 and as a result of our qualitative assessments, we recorded no impairment.

The following table shows the gross carrying amount and accumulated amortization of definite-lived intangibles (in millions):

	As of December 31, 2019
	Gross Carrying Value		Accumulated Amortization			Net
Amortized intangible assets:
Customer relationships (a)	$	6,548	$	(569	)	$	5,979
Network affiliation (a)	1,441		(689		)	752
Favorable sports contracts (a)	1,271		(43		)	1,228
Other (a)	46		(28		)	18
Total other definite-lived intangible assets, net (b)	$	2,758	$	(760	)	$	1,998

	As of December 31, 2018
	Gross Carrying Value		Accumulated Amortization			Net
Amortized intangible assets:
Customer relationships	$	1,113	$	(341	)	$	772
Network affiliation	1,452		(604		)	848
Other	33		(26		)	7
Total other definite-lived intangible assets, net (b)	$	1,485	$	(630	)	$	855

(a) As a result of our 2019 acquisitions, we acquired $6.7 billion of definite-lived assets as discussed in Note 2. Acquisitions and Dispositions of Assets.

(b) Approximately $93 million and $68 million of definite-lived intangible assets relate to consolidated VIEs as of December 31, 2019 and 2018.

Definite-lived intangible assets and other assets subject to amortization are being amortized on a straight-line basis over their estimated useful lives. The definite-lived intangible assets amortized over a weighted average useful life of 13 years for customer relationships, 15 years for network affiliations, and 12 years for favorable sports contracts. The total weighted average useful life of definite-lived intangible assets and other assets subject to amortization acquired as a result of the acquisitions discussed in Note 2. Acquisitions and Dispositions of Assets is 13 years. The amortization expense of the definite-lived intangible and other assets for the years ended December 31, 2019, 2018, and 2017 was $327 million, $175 million, and $179 million, respectively.  We analyze specific definite-lived intangibles for impairment when events occur that may impact their value in accordance with the respective accounting guidance for long-lived assets.  There were no impairment charges recorded for the years ended December 31, 2019, 2018, and 2017.

The following table shows the estimated annual amortization expense of the definite-lived intangible assets for the next five years (in millions): 

2020	$	742
2021	707
2022	690
2023	670
2024	656
2025 and thereafter	4,512
	$	7,977