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GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and other intangible assets consisted of the following:
|  | December 31,
|  | 2023 |  | 2022
|  | (In thousands)
Goodwill |  | $ | 5,165,694 |  |  | $ | 5,029,312 |
Indefinite-lived intangible assets: |  |  |  |
Trademarks |  | $ | 759,468 |  |  | $ | 754,431 |
Gaming rights and other |  | 382,235 |  |  | 385,060 |
Total indefinite-lived intangible assets |  | 1,141,703 |  |  | 1,139,491 |
Finite-lived intangible assets: |  |  |  |
MGM Grand Paradise gaming subconcession |  | — |  |  | 4,519,486 |
Less: Accumulated amortization |  | — |  |  | (4,519,486) |
|  | — |  |  | — |
Customer lists |  | 306,627 |  |  | 283,232 |
Less: Accumulated amortization |  | (107,082) |  |  | (60,055) |
|  | 199,545 |  |  | 223,177 |
Gaming rights |  | 333,191 |  |  | 106,600 |
Less: Accumulated amortization |  | (63,086) |  |  | (33,316) |
|  | 270,105 |  |  | 73,284 |
Technology and other |  | 154,469 |  |  | 129,061 |
Less: Accumulated amortization |  | (41,240) |  |  | (13,761) |
|  | 113,229 |  |  | 115,300 |
Total finite-lived intangible assets, net |  | 582,879 |  |  | 411,761 |
Total other intangible assets, net |  | $ | 1,724,582 |  |  | $ | 1,551,252 |
Goodwill. A summary of changes in the Company’s goodwill is as follows:
|  | 2023
|  | Balance at January 1 |  | Acquisitions/Divestitures |  | Reclassifications |  | Currency exchange |  | Balance at December 31
|  | (In thousands)
Las Vegas Strip Resorts |  | $ | 2,707,009 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,707,009 |
Regional Operations |  | 660,940 |  |  | — |  |  | — |  |  | — |  |  | 660,940 |
MGM China |  | 1,350,878 |  |  | — |  |  | — |  |  | (1,522) |  |  | 1,349,356 |
Corporate and other |  | 310,485 |  |  | 125,612 |  |  | — |  |  | 12,292 |  |  | 448,389 |
|  | $ | 5,029,312 |  |  | $ | 125,612 |  |  | $ | — |  |  | $ | 10,770 |  |  | $ | 5,165,694 |
|  | 2022
|  | Balance at January 1 |  | Acquisitions |  | Reclassifications |  | Currency exchange |  | Balance at December 31
|  | (In thousands)
Las Vegas Strip Resorts |  | $ | 1,427,790 |  |  | $ | 1,279,219 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,707,009 |
Regional Operations |  | 701,463 |  |  | — |  |  | (40,523) |  |  | — |  |  | 660,940 |
MGM China |  | 1,351,744 |  |  | — |  |  | — |  |  | (866) |  |  | 1,350,878 |
Corporate and other |  | — |  |  | 288,367 |  |  | — |  |  | 22,118 |  |  | 310,485 |
|  | $ | 3,480,997 |  |  | $ | 1,567,586 |  |  | $ | (40,523) |  |  | $ | 21,252 |  |  | $ | 5,029,312 |
Refer to Note 4 for discussion on acquisitions, divestitures, and assets held for sale (reclassifications). MGM Grand Paradise gaming subconcession and gaming concession. Pursuant to the agreement dated April 19, 2005 between MGM Grand Paradise and SJM Resorts S.A. (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. Pursuant to the then-existing Macau gaming law, upon reaching the maximum duration foreseen in the law (up to a maximum term of 20 years), the term of the concessions may be extended one or more times by order of the Chief Executive, which period may not exceed, in total, 5 years. In 2019, MGM Grand Paradise’s subconcession term was extended from March 31, 2020 to June 26, 2022, consistent with the expiration of the other concessionaires and subconcessionaires. On June 23, 2022, MGM Grand Paradise entered into an addendum to its subconcession pursuant to which its gaming subconcession was extended to December 31, 2022. In connection with the extension, MGM Grand Paradise paid the Macau government MOP 47 million (approximately $6 million). In June 2022, new Macau gaming law was enacted under which the existing subconcessions were discontinued and a maximum of six concessions were to be awarded for a term to be specified in the concession contract that may not exceed 10 years and which may be extended by three years under certain exceptional circumstances. The enactment of the new gaming law preceded the public tender for the awarding of new gaming concessions. On December 16, 2022, MGM Grand Paradise was awarded a ten-year concession contract to permit the operation of games of chance or other games in casinos in Macau which commenced on January 1, 2023. As the enactment of the new Macau gaming law in June 2022 provided for material changes to the legal form of gaming concessions in Macau, including discontinuing and prohibiting gaming subconcessions subsequent to their expiration, and also included material changes to the rights and obligations provided for under the new gaming concessions, the Company determined that the MGM Grand Paradise gaming subconcession and new gaming concession are two separate units of account. Further, as the material changes in the legal and regulatory environment could have an adverse effect on the value of MGM Grand Paradise’s gaming subconcession, the Company concluded that a triggering event had occurred under ASC 360 in June 2022 for the MGM China asset group. The Company compared the estimated undiscounted cash flows of the asset group to its carrying value and determined that the undiscounted cash flows significantly exceeded the carrying value and, therefore, no impairment was indicated. Additionally, in June 2022, the Company reassessed the useful life of the gaming subconcession intangible asset and determined that, given the new gaming law and the resulting changes described above, the useful life would no longer be based on the initial term of the MGM Cotai land concession, which ends in January 2038, and that the useful life should be revised to align with the cessation of the subconcession rights that occurred at the end of the contractual term of the gaming subconcession, which ended on December 31, 2022. Accordingly, amortization of the MGM Grand Paradise gaming subconcession was recognized on a straight-line basis over its reduced useful life. The gaming subconcession was fully amortized as of December 31, 2022. Pursuant to the gaming concession contract, MGM Grand Paradise is required, among other things, to pay a fixed annual premium and an annual variable premium based on the number of gaming tables and machines for the term of the gaming concession. Additionally, in connection with the expiration of the MGM Grand Paradise gaming subconcession on December 31, 2022, the casino areas of MGM Cotai and MGM Macau reverted, free of charge and without any encumbrances, to the Macau government, which became the legal owner of the reverted gaming assets. Upon the commencement of the gaming concession, the gaming assets were temporarily transferred to MGM Grand Paradise for the duration of the concession term in return for annual payments determined by square meters of the reverted casino areas. Accordingly, upon commencement of the gaming concession contract on January 1, 2023, MGM Grand Paradise recorded an intangible asset, included within “Gaming rights” above, of $226 million for the right to conduct gaming and operate the reverted gaming equipment and gaming areas and a corresponding liability for the in-substance consideration to be paid over the concession term for such rights, which is the unconditional obligation of the fixed and variable annual premiums, as well as the payments relating to the use of the reverted gaming assets. The initial value of the intangible asset and liability were measured as the present value of these payments based upon the approved number of gaming tables and slot machines, estimates of the Macau average price index, and square meters of the reverted casino areas, each as of January 1, 2023. The current portion of $7 million and noncurrent portion of $214 million of the remaining liability was recorded within “Other accrued liabilities” and “Other long-term liabilities,” respectively, in the consolidated balance sheets as of December 31, 2023. The gaming concession intangible asset is being amortized on a straight-line basis over the ten-year term of the gaming concession contract. The fully amortized gaming subconcession intangible asset was derecognized upon the expiration of the gaming subconcession and corresponding commencement of the gaming concession contract. Amortization expense. Amortization expense related to intangible assets was $103 million, $2.7 billion and $197 million for 2023, 2022, and 2021, respectively. As of December 31, 2023, estimated future amortization is as follows:
Years ending December 31, |  | (In thousands)
2024 |  | $ | 106,484 |
2025 |  | 104,587 |
2026 |  | 102,212 |
2027 |  | 83,819 |
2028 |  | 48,389 |
Thereafter |  | 137,388 |
|  | $ | 582,879 |

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