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Note 3 - Goodwill and Intangible Assets, Net

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 3. GOODWILL AND INTANGIBLE ASSETS, NET

Intangible assets, net consist of the following:

	*March 31, 2020*
	*Weighted*	*Gross*					*Accumulated*
	*Useful Life*	*Carrying*		*Accumulated*			*Impairment*			*Intangible*
*(In thousands)*	*Remaining (in years)*	*Value*		*Amortization*			*Losses*			*Assets, Net*
*Amortizing intangibles*
Customer relationships	3.2	$	68,100	$	(43,465	)	$	—		$	24,635
Host agreements	13.2		58,000		(7,089	)		—			50,911
Development agreement	—		21,373		—			—			21,373
			147,473		(50,554	)		—			96,919

*Indefinite lived intangible assets*
Trademarks	Indefinite		206,687		—			(21,200	)		185,487
Gaming license rights	Indefinite		1,376,685		(33,960	)		(222,174	)		1,120,551
			1,583,372		(33,960	)		(243,374	)		1,306,038
Balances, March 31, 2020		$	1,730,845	$	(84,514	)	$	(243,374	)	$	1,402,957

	*December 31, 2019*
	*Weighted*	*Gross*					*Accumulated*
	*Useful Life*	*Carrying*		*Accumulated*			*Impairment*			*Intangible*
*(In thousands)*	*Remaining (in years)*	*Value*		*Amortization*			*Losses*			*Assets, Net*
*Amortizing intangibles*
Customer relationships	3.5	$	68,100	$	(39,598	)	$	—		$	28,502
Host agreements	13.4		58,000		(6,122	)		—			51,878
Development agreement	—		21,373		—			—			21,373
			147,473		(45,720	)		—			101,753

*Indefinite lived intangible assets*
Trademarks	Indefinite		206,687		—			(4,300	)		202,387
Gaming license rights	Indefinite		1,376,685		(33,960	)		(179,974	)		1,162,751
			1,583,372		(33,960	)		(184,274	)		1,365,138
Balances, December 31, 2019		$	1,730,845	$	(79,680	)	$	(184,274	)	$	1,466,891

For the three months ended March 31, 2020, we evaluated whether events or circumstances had occurred that would indicate it is more likely than not that any of our goodwill or other intangible assets were impaired. Factors considered in this evaluation included, among other things, the amount of the fair value over carrying value from the annual impairment testing performed as of October 1, 2019, changes in discount rates, and the expected impact of the temporary property closures due to the COVID-19 pandemic on future revenues and cash flows. Based on this evaluation, we concluded that triggering events had occurred, and we reviewed our assets for impairment. For purposes of this review, we updated the discount rates to reflect the increased uncertainty of the cash flows and also updated revenue and cash flow forecasts. As a result of this review, we recorded impairment changes in our first quarter 2020 results totaling $171.1 million. Of this total, $112.0 million was for impairments of goodwill, $42.2 million for impairments of gaming license rights and $16.9 million for the impairments of trademarks.