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6. Intangible assets (continued)The recoverable amount of the cash generating unit was determined using the %u201cvalue in use%u201d method. These calculations use pre-tax cash-fow projections based on fnancial budgets approved by management. The discount rates used are pre-tax and refect the specifc risk relating to the cashgenerating unit.The carrying amounts of goodwill and licences with indefnite useful lives are allocated to the following CGUs, for impairment testing. These CGUs are part of the %u201cMulti-Media%u201d reporting segment disclosed in Note 20.GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2018(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)TBC NetworkSKY 99.5FMSLAM 100.5FM Total2018 2017 2018 2017 2018 2017 2018 2017$ $ $ $ $ $ $ $Goodwill 3,374 3,374 %u2013 %u2013 %u2013 %u2013 3,374 3,374Radio broadcast licences %u2013 %u2013 5,800 5,800 6,099 6,099 11,899 11,899The recoverable amounts used in the impairment testing of the TBC Network, SKY 99.5FM and SLAM 100.5 FM CGUs were $36.5 million, $10.7 million and $19.6 million respectively.Key assumptions used in value in use calculations and sensitivity to changes in assumptionsThe calculation of value in use for the TBC Network, SKY 99.5FM and SLAM 100.5FM units is most sensitive to the following assumptions:%u2022 Gross margin%u2022 Discount rates%u2022 Growth rates used to extrapolate cash fows beyond the forecast period.Gross marginEstimated revenue, which is a key element of the estimated gross margins, is based on the implementation of a new sales strategy in alignment with current market developments. Decreased advertising demand can lead to a decline in the revenue generated and, consequently, the gross margin, which may impact the value in use calculation of the CGUs and the results of the impairment test.80 GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIES ANNUAL REPORT 2018