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Intangible Assets, net and Goodwill | 9 Months Ended
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Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets, net and Goodwill | Intangible Assets, net and Goodwill Intangible Assets, net The following tables present certain information regarding our intangible assets as of September 30, 2016 and December 31, 2015. Amortizable intangible assets are being amortized on a straight-line basis over their estimated useful lives with no estimated residual value, which materially approximates the expected pattern of use of these intangible assets.
| September 30, 2016 |  | December 31, 2015
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Balance |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Balance
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |
Customer relationships | $ | 879.2 |  |  | $ | (151.0 | ) |  | $ | 728.2 |  |  | $ | 877.7 |  |  | $ | (109.1 | ) |  | $ | 768.6 |
Intellectual property(1) | 733.9 |  |  | (195.3 | ) |  | 538.6 |  |  | 731.1 |  |  | (124.5 | ) |  | 606.6 |
Licenses | 417.8 |  |  | (139.0 | ) |  | 278.8 |  |  | 326.1 |  |  | (91.6 | ) |  | 234.5 |
Brand names | 125.2 |  |  | (29.1 | ) |  | 96.1 |  |  | 124.0 |  |  | (18.9 | ) |  | 105.1 |
Trade names | 97.4 |  |  | (6.5 | ) |  | 90.9 |  |  | 97.5 |  |  | (1.9 | ) |  | 95.6 |
Patents and other | 27.8 |  |  | (14.0 | ) |  | 13.8 |  |  | 27.1 |  |  | (12.8 | ) |  | 14.3 |
| 2,281.3 |  |  | (534.9 | ) |  | 1,746.4 |  |  | 2,183.5 |  |  | (358.8 | ) |  | 1,824.7 |
Non-amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |
Trade names | 96.7 |  |  | (2.1 | ) |  | 94.6 |  |  | 97.4 |  |  | (2.1 | ) |  | 95.3 |
Total intangible assets | $ | 2,378.0 |  |  | $ | (537.0 | ) |  | $ | 1,841.0 |  |  | $ | 2,280.9 |  |  | $ | (360.9 | ) |  | $ | 1,920.0 |
(1) December 31, 2015 net balance includes $33 million of in-process R&D assets that were not subject to amortization. These assets reached commercial feasibility at the end of the third quarter of 2016, with amortization commencing October 2016. In January 2016, we amended and extended the terms of one of our existing license agreements through December 31, 2022. Under the terms of the amended agreement, we are obligated to pay aggregate minimum guarantees of $88.0 million over the life of the contract in exchange for the right to use certain licensed properties in game content themes, which are incorporated into our slot games, online games, lottery products and promotional materials. We account for the minimum guaranteed obligations within other long-term liabilities (or, with respect to the portion that is a current liability within accounts payable or accrued liabilities) at the onset of the license arrangement and record a corresponding licensed asset within Intangible assets, net. The current and long-term portions of our minimum guaranteed obligations related to the amended license agreement were $8.8 million and $74.6 million, respectively, and are recorded in Accounts payable and Other long-term liabilities, respectively, as of September 30, 2016. Intangible amortization expense is included within D&A.
| Three Months Ended |  | Nine Months Ended
September 30, |  | September 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
Amortization expense | $ | 60.9 |  |  | $ | 181.5 |  |  | $ | 188.8 |  |  | $ | 331.8 |
We recorded non-cash impairment charges of $103.6 million and $128.6 million in D&A for the three and nine months ended September 30, 2015, respectively, to reduce the gross carrying amount of two indefinite-lived trade name assets to their fair values. These assets were subsequently reclassified to finite-lived during the third quarter of 2015. Goodwill Based on the results of our third quarter 2015 interim goodwill impairment analysis for our SG gaming reporting unit, we recorded a $935.0 million non-cash impairment charge with no tax benefit for the three and nine months ended September 30, 2015. The impairment charge primarily resulted from a change in outlook for the SG gaming reporting unit due to market-related factors negatively impacting gaming machine unit demand and the number of gaming machines leased by our customers combined with fewer than anticipated new casino openings and expansions. All of these factors resulted in declines in our outlook for gaming machine sales and Participation game revenues. The table below reconciles the change in the carrying amount of goodwill by business segment for the period from December 31, 2015 to September 30, 2016.
Goodwill |  | Gaming |  | Lottery |  | Interactive |  | Totals
Balance as of December 31, 2015 |  | $ | 2,486.0 |  |  | $ | 417.9 |  |  | $ | 109.8 |  |  | $ | 3,013.7 |
Foreign currency adjustments |  | (27.1 | ) |  | 4.4 |  |  | — |  |  | (22.7 | )
Balance as of September 30, 2016 |  | $ | 2,458.9 |  |  | $ | 422.3 |  |  | $ | 109.8 |  |  | $ | 2,991.0 |

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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