GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill:

Goodwill by reporting unit as at June 30, 2012 and December 31, 2011 is summarized as follows:



	Gross Balance, December 31, 2011		Accumulated Impairment Losses			Balance, December 31, 2011		Foreign Currency			Balance, June 30, 2012		Accumulated Impairment Losses			Gross Balance, June 30, 2012
Broadcast segment:
Bulgaria	$	176,394	$	(117,460	)	$	58,934	$	(1,590	)	$	57,344	$	(117,460	)	$	174,804
Croatia	11,116		(10,454		)	662		(17		)	645		(10,454		)	11,099
Czech Republic	862,457		—			862,457		(17,855		)	844,602		—			844,602
Romania	62,078		—			62,078		(3,414		)	58,664		—			58,664
Slovak Republic	56,575		—			56,575		(1,526		)	55,049		—			55,049
Slovenia	18,321		—			18,321		(494		)	17,827		—			17,827
Media Pro Entertainment segment:
Fiction and reality and entertainment	17,502		—			17,502		(920		)	16,582		—			16,582
Production services	11,028		(11,028		)	—		—			—		(11,028		)	11,028
Distribution	18,664		—			18,664		(996		)	17,668		—			17,668
Total	$	1,234,135	$	(138,942	)	$	1,095,193	$	(26,812	)	$	1,068,381	$	(138,942	)	$	1,207,323

Broadcast licenses and other intangible assets:

The net book value of our broadcast licenses and other intangible assets as at June 30, 2012 and December 31, 2011 is summarized as follows:



	Indefinite-Lived Broadcast Licenses			Amortized Broadcast Licenses			Trademarks			Customer Relationships			Other			Total
Balance, December 31, 2011	$	51,800		$	280,210		$	126,645		$	74,346		$	5,194		$	538,195
Reclassifications	(51,800		)	51,800			—			—			—			—
Additions	—			—			—			—			201			201
Amortization	—			(20,506		)	—			(4,320		)	(372		)	(25,198		)
Foreign currency movements	—			(7,555		)	(4,100		)	(1,888		)	(132		)	(13,675		)
Balance, June 30, 2012	$	—		$	303,949		$	122,545		$	68,138		$	4,891		$	499,523

Until December 31, 2011, our broadcast licenses in Croatia, Romania and Slovenia were determined to have indefinite lives and were subject to annual impairment reviews. Due to the change in estimates discussed below, these balances were reclassified from indefinite-lived to amortized on January 1, 2012. The indefinite-lived licenses were not impaired as at January 1, 2012. Prior to December 31, 2011, the licenses in Bulgaria were determined to have an estimated economic useful life of, and were amortized on a straight-line basis over, twenty-four years. Licenses in the Czech Republic were determined to have an economic useful life of, and were amortized on a straight-line basis over, twenty years. The license in the Slovak Republic was determined to have an economic useful life of, and was amortized on a straight-line basis over, thirteen years.

We revised our estimate of the remaining useful life of certain of our Broadcast licenses as of January 1, 2012, and now amortize the remaining balances on a straight-line basis over the following periods, which are generally the remaining contractual life of the license: twelve years in Bulgaria, thirteen years in the Czech Republic, three years in Romania, eight years in the Slovak Republic, and ten years in Slovenia. The license in Croatia was previously written down to a nominal value. The impact of this change in estimates is a higher amortization charge of approximately US$ 4.2 million recorded during the three months ended June 30, 2012 or US$ 0.06 and US$ 0.06 per basic common share and diluted common share and US$ 9.5 million recorded during the six months ended June 30, 2012, or US$ 0.14 and US$ 0.14 per basic common share and diluted common share, respectively.

Customer relationships are deemed to have an economic useful life of, and are amortized on a straight-line basis over, five to fifteen years. Trademarks have an indefinite life.

The gross value and accumulated amortization of broadcast licenses and other intangible assets was as follows at June 30, 2012 and December 31, 2011:



	June 30, 2012			December 31, 2011
Gross value	$	543,381		$	514,641
Accumulated amortization	(166,403		)	(154,891		)
Net book value of amortized intangible assets	376,978			359,750
Indefinite-lived broadcast licenses and trademarks	122,545			178,445
Total broadcast licenses and other intangible assets, net	$	499,523		$	538,195

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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