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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | NOTE 7 — GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and other intangible assets consisted of the following:
|  | December 31, |
|  | 2019 |  |  | 2018 |
|  | (In thousands) |
Goodwill |  | $ | 2,084,564 |  |  | $ | 1,821,392 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |
Detroit development rights |  | $ | 98,098 |  |  | $ | 98,098 |
MGM Northfield Park racing and gaming licenses |  |  | 228,000 |  |  |  | 228,000 |
Trademarks, license rights and other |  |  | 352,212 |  |  |  | 312,022 |
Total indefinite-lived intangible assets |  |  | 678,310 |  |  |  | 638,120 |
Finite-lived intangible assets: |  |  |  |  |  |  |  |
MGM Grand Paradise gaming sub-concession |  |  | 4,519,558 |  |  |  | 4,468,766 |
Less: Accumulated amortization |  |  | (1,514,772 | ) |  |  | (1,342,561 | )
|  |  | 3,004,786 |  |  |  | 3,126,205 |
MGM Macau land concession |  |  | — |  |  |  | 83,885 |
Less: Accumulated amortization |  |  | — |  |  |  | (32,035 | )
|  |  | — |  |  |  | 51,850 |
Customer lists |  |  | 202,347 |  |  |  | 174,679 |
Less: Accumulated amortization |  |  | (161,892 | ) |  |  | (151,465 | )
|  |  | 40,455 |  |  |  | 23,214 |
Finite-lived gaming licenses and other intangible assets |  |  | 141,327 |  |  |  | 136,127 |
Less: Accumulated amortization |  |  | (38,374 | ) |  |  | (31,053 | )
|  |  | 102,953 |  |  |  | 105,074 |
Total finite-lived intangible assets, net |  |  | 3,148,194 |  |  |  | 3,306,343 |
Total other intangible assets, net |  | $ | 3,826,504 |  |  | $ | 3,944,463 |
Goodwill. A summary of changes in the Company’s goodwill by reportable segment is as follows for 2019 and 2018:
|  | 2019 |
|  | Balance at January 1 |  |  | Acquisitions |  |  | Reclassifications |  |  | Currency exchange |  |  | Balance at December 31 |
|  | (In thousands) |
Goodwill, net by segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Las Vegas Strip Resorts |  | $ | 70,975 |  |  | $ | — |  |  | $ | (40,523 | ) |  | $ | — |  |  | $ | 30,452 |
Regional Operations |  |  | 386,892 |  |  |  | 256,133 |  |  |  | 58,438 |  |  |  | — |  |  |  | 701,463 |
MGM China |  |  | 1,345,610 |  |  |  | — |  |  |  | — |  |  |  | 7,039 |  |  |  | 1,352,649 |
Corporate and other |  |  | 17,915 |  |  |  | — |  |  |  | (17,915 | ) |  |  | — |  |  |  | — |
|  | $ | 1,821,392 |  |  | $ | 256,133 |  |  | $ | — |  |  | $ | 7,039 |  |  | $ | 2,084,564 |
|  |  |  | 2018 |
|  |  |  | Balance at January 1 |  |  | Acquisitions |  |  | Currency exchange |  |  | Balance at December 31 |
|  |  |  | (In thousands) |
Goodwill, net by segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Las Vegas Strip Resorts |  |  |  | $ | 70,975 |  |  | $ | — |  |  | $ | — |  |  | $ | 70,975 |
Regional Operations |  |  |  |  | 386,892 |  |  |  | — |  |  |  | — |  |  |  | 386,892 |
MGM China |  |  |  |  | 1,348,664 |  |  |  | — |  |  |  | (3,054 | ) |  |  | 1,345,610 |
Corporate and other |  |  |  |  | — |  |  |  | 17,915 |  |  |  | — |  |  |  | 17,915 |
|  |  |  | $ | 1,806,531 |  |  | $ | 17,915 |  |  | $ | (3,054 | ) |  | $ | 1,821,392 |
Goodwill was recognized related to the acquisition of Empire City in January 2019, which is included in Regional Operations. See Note 4 for discussion of the Empire City acquisition. Goodwill was recognized by MGP, which was included within Corporate and other in 2018 and reclassed to Regional Operations in 2019, in connection with MGP’s acquisition of Northfield in 2018, and the Company’s acquisition of the membership interests of Northfield in 2019. See Note 4 for discussion of the Northfield Acquisition. The presentation of the goodwill balance attributable to Gold Strike Tunica has been reclassified in 2019 from Las Vegas Strip Resorts to Regional Operations. Indefinite-lived intangible assets. The Company’s indefinite-lived intangible assets consist primarily of development rights in Detroit, gaming and racing licenses for MGM Northfield Park, and trademarks and trade names, which is primarily related to Mandalay Bay, Luxor, Borgata, and Empire City. MGM Grand Paradise gaming subconcession. Pursuant to the agreement dated June 19, 2004 between MGM Grand Paradise and Sociedade de Jogos de Macau, S.A. (“SJMSA”), a gaming sub-concession was acquired by MGM Grand Paradise for the right to operate casino games of chance and other casino games for a period of 15 years commencing on April 20, 2005. In March 2019, MGM Grand Paradise and SJMSA entered into a Sub-Concession Extension Contract (the “Extension Agreement”), pursuant to which the gaming sub-concession was extended to June 26, 2022, which coincides with the current expiration of all the other concessionaires and sub-concessionaires. MGM Grand Paradise paid the government of Macau approximately $25 million and paid SJMSA approximately $2 million as a contract premium for such extension. The Company cannot provide any assurance that the gaming sub-concession will be extended beyond the current terms; however, management believes that the gaming sub-concession will be extended, given that the Cotai land concession agreement with the government extends significantly beyond the gaming sub-concession. As such, as of December 31, 2019, the Company amortizes the gaming sub-concession intangible asset on a straight-line basis over the initial term of the Cotai land concession, ending in January 2038. MGM Macau land concession. MGM Grand Paradise entered into a contract with the Macau government to use the land under MGM Macau commencing from April 6, 2006. The land use right has an initial term through April 6, 2031, subject to renewal for additional periods. Upon the adoption of ASC 842 on January 1, 2019, the below market component of the MGM Macau land concession, recognized prior to ASC 842 adoption as an intangible asset, is now reflected within the ROU operating asset recorded for the MGM Macau land concession. Customer lists. The Company recognized intangible assets related to the Empire City customer list and the MGM Northfield Park customer list, which are amortized on a straight-line basis over the estimated useful life over four years, and seven years, respectively. The Company also recognized intangible assets related to MGM China’s and Borgata’s customer lists, which became fully amortized in 2016 and 2018, respectively. Finite-lived gaming licenses. The license fee paid to the State of Maryland of $22 million is considered a finite-lived intangible asset that is amortized on a straight-line basis over a period of its initial term of 15 years, beginning in December 2016, when MGM National Harbor started operations. The license fee paid to the State of Massachusetts of $85 million is considered a finite-lived intangible asset that is amortized over a period of 15 years, beginning in August 2018, when MGM Springfield started operations. Other. The Company’s other finite–lived intangible assets consist primarily of lease acquisition costs amortized over the life of the related leases, and certain license rights amortized over their contractual life. Total amortization expense related to intangible assets was $192 million, $176 million and $173 million for 2019, 2018, and 2017, respectively. As of December 31, 2019, estimated future amortization is as follows:
Years ending December 31, |  | (In thousands) |
2020 |  | $ | 193,886 |
2021 |  |  | 196,932 |
2022 |  |  | 190,840 |
2023 |  |  | 178,378 |
2024 |  |  | 175,866 |
Thereafter |  |  | 2,212,292 |
|  | $ | 3,148,194 |

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