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GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS, AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2024
Goodwill  
GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS, AND OTHER INTANGIBLE ASSETS
4. 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. The change in the carrying amount of goodwill at December 31, 2024 and 2023 was as follows (in millions):
 Local mediaTennisOtherConsolidated
Balance at December 31, 2022$2,016 $61 $11 $2,088 
Disposition— — (6)(6)
Balance at December 31, 2023$2,016 $61 $5 $2,082 
Balance at December 31, 2024$2,016 $61 $5 $2,082 

Our accumulated goodwill impairment was $3,029 million as of both December 31, 2024 and 2023, of which $414 million related to our local media segment and $2,615 million related to our local sports segment (prior to the Deconsolidation) as of both December 31, 2024 and 2023, respectively.

For our annual goodwill impairment tests related to our local media, tennis, and other reporting units in 2024 and 2023 and our tennis and other reporting units in 2022, 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. 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 2024 or 2023 and therefore did not perform interim impairment tests for goodwill during those periods.

For our annual goodwill impairment test related to our local media reporting unit in 2022, we elected to perform a quantitative assessment and concluded that its fair value substantially exceeded its carrying value. The key assumptions used to determine the fair value of our local media reporting unit consisted primarily of significant unobservable inputs (Level 3 fair value inputs), including discount rates, estimated cash flows, profit margins, and growth rates. The discount rate used to determine the fair value of our local media reporting unit is based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television broadcasting company and includes adjustments for market risk and company specific risk. Estimated cash flows are based upon internally developed estimates and growth rates and profit margins are based on market studies, industry knowledge, and historical performance.

As of December 31, 2024 and 2023, the carrying amount of our indefinite-lived intangible assets was as follows (in millions):
Local mediaTennisOtherConsolidated
Balance at December 31, 2022 (a)$123 $24 $3 $150 
Balance at December 31, 2023 (a) (b)$123 $24 $3 $150 
Balance at December 31, 2024 (a) (b)$123 $24 $3 $150 
(a)Our indefinite-lived intangible assets in our local media segment relate to broadcast licenses and our indefinite-lived intangible assets in our tennis segment and other relate to trade names.
(b)Approximately $14 million of indefinite-lived intangible assets relate to consolidated VIEs as of December 31, 2024 and 2023.
We performed our annual impairment tests for indefinite-lived intangibles in 2024 and 2023 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, 2024
 Gross Carrying ValueAccumulated AmortizationNet
Amortized intangible assets:
Customer relationships$1,098 $(796)$302 
   Network affiliation$1,435 $(1,112)$323 
   Other36 (31)5 
Total other definite-lived intangible assets (a)$1,471 $(1,143)$328 
Total definite-lived intangible assets$2,569 $(1,939)$630 
 
 As of December 31, 2023
 Gross Carrying ValueAccumulated AmortizationNet
Amortized intangible assets:
Customer relationships$1,098 $(729)$369 
Network affiliation$1,435 $(1,032)$403 
   Other36 (29)7 
Total other definite-lived intangible assets (a)$1,471 $(1,061)$410 
Total definite-lived intangible assets$2,569 $(1,790)$779 
(a)Approximately $26 million and $33 million of definite-lived intangible assets relate to consolidated VIEs as of December 31, 2024 and 2023, respectively.

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 are amortized over a weighted average useful life of 14 years for customer relationships and 15 years for network affiliations. The amortization expense of the definite-lived intangible and other assets for the years ended December 31, 2024, 2023, and 2022 was $149 million, $166 million, and $225 million, respectively, of which $4 million for the year ended December 31, 2022 was associated with the amortization of favorable sports contracts prior to the Deconsolidation and is presented within media programming and production expenses in our statements of operations. 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, 2024, 2023, and 2022, as there were no indicators of impairment.

The following table shows the estimated annual amortization expense of the definite-lived intangible assets for the next five years and thereafter (in millions):
2025$143 
2026141 
2027127 
2028101 
202965 
2030 and thereafter53 
$630 
Sinclair Broadcast Group, LLC  
Goodwill  
GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS, AND OTHER INTANGIBLE ASSETS
4. 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. The change in the carrying amount of goodwill at December 31, 2024 and 2023 was as follows (in millions):
 Local mediaOtherConsolidated
Balance at December 31, 2022$2,016 $72 $2,088 
Disposition— (6)(6)
Transferred to Ventures— (66)(66)
Balance at December 31, 2023$2,016 $— $2,016 
Balance at December 31, 2024$2,016 $— $2,016 

SBG’s accumulated goodwill impairment was $3,029 million as of both December 31, 2024 and 2023, of which $414 million related to our local media segment and $2,615 million related to our local sports segment (prior to the Deconsolidation) as of both December 31, 2024 and 2023, respectively.

For SBG’s annual goodwill impairment tests related to its local media reporting unit in 2024 and 2023 and its other reporting units in 2022, SBG 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 SBG’s annual assessments indicated stable or improving margins and favorable or stable forecasted economic conditions including stable discount rates and comparable or improving business multiples. Additionally, the results of prior quantitative assessments supported significant excess fair value over carrying value of SBG’s reporting units. SBG did not have any indicators of impairment in any interim period in 2024 or 2023 and therefore did not perform interim impairment tests for goodwill during those periods.

For SBG’s annual goodwill impairment test related to its local media reporting unit in 2022, SBG elected to perform a quantitative assessment and concluded that its fair value substantially exceeded its carrying value. The key assumptions used to determine the fair value of SBG’s local media reporting unit consisted primarily of significant unobservable inputs (Level 3 fair value inputs), including discount rates, estimated cash flows, profit margins, and growth rates. The discount rate used to determine the fair value of SBG’s local media reporting unit is based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television broadcasting company and includes adjustments for market risk and company specific risk. Estimated cash flows are based upon internally developed estimates and growth rates and profit margins are based on market studies, industry knowledge, and historical performance.
As of December 31, 2024 and 2023, the carrying amount of SBG’s indefinite-lived intangible assets was as follows (in millions):
Local mediaOtherConsolidated
Balance at December 31, 2022 (a)$123 $27 $150 
Transferred to Ventures— (27)(27)
Balance at December 31, 2023 (a) (b)$123 $— $123 
Balance at December 31, 2024 (a) (b)$123 $— $123 
(a)SBG’s indefinite-lived intangible assets in its local media segment relate to broadcast licenses and SBG’s indefinite-lived intangible assets in other relate to trade names.
(b)Approximately $14 million of indefinite-lived intangible assets relate to consolidated VIEs as of December 31, 2024 and 2023.
SBG did not have any indicators of impairment for its indefinite-lived intangible assets in 2024 or 2023, and therefore did not perform interim impairment tests during those periods. SBG performed its annual impairment tests for indefinite-lived intangibles in 2024 and 2023 and as a result of its qualitative assessments, SBG recorded no impairment.

The following table shows the gross carrying amount and accumulated amortization of SBG’s definite-lived intangibles (in millions):
  As of December 31, 2024
 Gross Carrying ValueAccumulated AmortizationNet
Amortized intangible assets:
Customer relationships$817 $(626)$191 
   Network affiliation$1,435 $(1,112)$323 
   Other21 (18)3 
Total other definite-lived intangible assets (a)$1,456 $(1,130)$326 
Total definite-lived intangible assets$2,273 $(1,756)$517 
 
 As of December 31, 2023
 Gross Carrying ValueAccumulated AmortizationNet
Amortized intangible assets:
Customer relationships (b)$817 $(579)$238 
Network affiliation$1,435 $(1,032)$403 
   Other21 (15)6 
Total other definite-lived intangible assets (a) and (b)$1,456 $(1,047)$409 
Total definite-lived intangible assets$2,273 $(1,626)$647 
(a)Approximately $26 million and $33 million of definite-lived intangible assets relate to consolidated VIEs as of December 31, 2024 and 2023, respectively.
(b)During 2023, $142 million of customer relationships and $7 million of other definite-lived intangible assets were transferred to Ventures as part of the Reorganization, as discussed in Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies.
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 are amortized over a weighted average useful life of 14 years for customer relationships and 15 years for network affiliations. The amortization expense of the definite-lived intangible and other assets for the years ended December 31, 2024, 2023, and 2022 was $129 million, $148 million, and $225 million, respectively, of which $4 million for the year ended December 31, 2022 was associated with the amortization of favorable sports contracts prior to the Deconsolidation and is presented within media programming and production expenses in SBG’s consolidated statements of operations. SBG analyzes 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, 2024, 2023, and 2022, as there were no indicators of impairment.

The following table shows the estimated annual amortization expense of the definite-lived intangible assets for the next five years and thereafter (in millions):
2025$123 
2026122 
2027109 
202883 
202948 
2030 and thereafter32 
$517