Company: CCO
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001334978-25-000008
Chunk: 112

Company: Clear Channel Outdoor Holdings, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 112
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 further details on the Company’s asset acquisitions.GoodwillThe Company records goodwill in conjunction with business combinations and performs an annual impairment test on July 1, or more frequently if events or circumstances indicate the carrying value may be impaired. In accordance with ASC 350-20, the carrying amount of each reporting unit, including goodwill, is compared to its fair value. If the carrying amount exceeds the fair value, an impairment charge is recognized, limited to the total goodwill allocated to the reporting unit.To determine fair value, the Company uses a discounted cash flow model, which requires estimates of future cash flows from each reporting unit, discounted at a risk-adjusted rate. Terminal values are also estimated and discounted to present value. These estimates are based on revenue projections, operating margins, growth rates and discount rates derived from business plans, economic forecasts and marketplace data.Historical Treatment and Change in Reporting UnitsIn 2022, the Company had two reportable segments: Americas (primarily U.S. operations) and Europe (operations in Europe and Singapore), along with a Latin America operating segment that did not meet the thresholds for reportable segments. For goodwill impairment testing, the Company aggregated markets within each segment into three reporting units: Americas, Europe and Latin America.Effective December 31, 2022, the Company realigned its segments to reflect changes in how the business was managed, resulting in four reportable segments: America, Airports, Europe-North and Europe-South. Operations in Latin America and Singapore were reported as “Other.” The Company also revised its reporting units to align with the new segments: America, Airports, Europe-North, Europe-South, Latin America and Singapore. In connection with this change, the Company allocated its existing goodwill to the new reporting units based on relative fair value, with assistance from a valuation specialist. The goodwill previously assigned to the Americas reporting unit was allocated to the new America and Airports reporting units, and goodwill previously assigned to the Europe reporting unit was allocated to the new Europe-North and Europe-South reporting units. The Latin America reporting unit had no remaining goodwill. The Company tested its goodwill for impairment immediately before and after the segment change.Following the reclassification of its European and Latin American operations as discontinued, effective December 31, 2024, the Company operates two reportable segments: America and Airports. Goodwill for these reporting units will continue to be tested for impairment annually, or more frequently if necessary.Refer to Note 11 for additional disclosures about the Company's goodwill