Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill and other intangible assets consisted of the following:


	September 30, 2021		December 31, 2020
	(In thousands)
Goodwill	$	3,484,966	$	2,091,278

Indefinite-lived intangible assets:
Detroit development rights	$	98,098	$	98,098
MGM Northfield Park and Empire City racing and gaming licenses	280,000		280,000
Trademarks and other	479,238		299,238
Total indefinite-lived intangible assets	857,336		677,336
Finite-lived intangible assets:
MGM Grand Paradise gaming subconcession	4,522,623		4,541,990
Less: Accumulated amortization	(1,823,362)		(1,697,481)
	2,699,261		2,844,509
MGM National Harbor and MGM Springfield gaming licenses	106,600		106,600
Less: Accumulated amortization	(24,432)		(19,102)
	82,168		87,498
Other finite-lived intangible assets	65,207		60,649
Less: Accumulated amortization	(34,865)		(26,244)
	30,342		34,405
Total finite-lived intangible assets, net	2,811,771		2,966,412
Total other intangible assets, net	$	3,669,107	$	3,643,748

Goodwill. A summary of changes in the Company’s goodwill by reportable segment is as follows for the nine months ended September 30, 2021 and twelve months ended December 31, 2020:


	2021
	Balance at January 1		Acquisitions		Currency exchange		Balance at September 30
	(In thousands)
Goodwill, net by segment:
Las Vegas Strip Resorts	$	30,452	$	1,399,484	$	—	$	1,429,936
Regional Operations	701,463		—		—		701,463
MGM China	1,359,363		—		(5,796)		1,353,567
	$	2,091,278	$	1,399,484	$	(5,796)	$	3,484,966


	2020
	Balance at January 1		Acquisitions		Currency exchange		Balance at December 31
	(In thousands)
Goodwill, net by segment:
Las Vegas Strip Resorts	$	30,452	$	—	$	—	$	30,452
Regional Operations	701,463		—		—		701,463
MGM China	1,352,649		—		6,714		1,359,363
	$	2,084,564	$	—	$	6,714	$	2,091,278

Goodwill was recognized in 2021 related to the acquisition of the 50% ownership interest in CityCenter, which is included in Las Vegas Strip Resorts, as further discussed in Note 3.

MGM Grand Paradise gaming subconcession. Pursuant to the agreement dated April 19, 2005 between MGM Grand Paradise and SJM Resorts S.A. (“SJMSA”, formerly Sociedade de Jogos de Macau, S.A.), a gaming subconcession was acquired by MGM Grand Paradise for the right to operate casino games of chance and other casino games for a period commencing on April 20, 2005 through March 31, 2020. In March 2019, MGM Grand Paradise and SJMSA entered into a Subconcession Extension Contract (the “Extension Agreement”), pursuant to which the gaming subconcession was extended to June 26, 2022, which coincides with the current expiration of all the other concessions and subconcessions. 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 subconcession will be extended beyond the current term; however, management believes that the gaming subconcession will be extended or replaced with a similar governmental license. As such, as of September 30, 2021 and December 31, 2020, the Company amortizes the gaming subconcession intangible asset on a straight-line basis over the initial term of the Cotai land concession, ending in January 2038.