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Note 3 - Goodwill and Intangible Assets, Net

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 3. GOODWILL AND INTANGIBLE ASSETS, NET

Intangible assets, net consist of the following:

	*June 30, 2020*
	*Weighted*	*Gross*					*Accumulated*
	*Useful Life*	*Carrying*		*Accumulated*			*Impairment*			*Intangible*
*(In thousands)*	*Remaining (in years)*	*Value*		*Amortization*			*Losses*			*Assets, Net*
*Amortizing intangibles*
Customer relationships	3.0	$	68,100	$	(47,330	)	$	—		$	20,770
Host agreements	12.9		58,000		(8,056	)		—			49,944
Development agreement	—		21,373		—			—			21,373
			147,473		(55,386	)		—			92,087

*Indefinite lived intangible assets*
Trademarks	Indefinite		204,000		—			(21,200	)		182,800
Gaming license rights	Indefinite		1,376,685		(33,960	)		(222,174	)		1,120,551
			1,580,685		(33,960	)		(243,374	)		1,303,351
Balances, June 30, 2020		$	1,728,158	$	(89,346	)	$	(243,374	)	$	1,395,438

	*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

Goodwill, net consists of the following:

	Gross					Accumulated
	Carrying		Accumulated			Impairment			Goodwill,
(In thousands)	Value		Amortization			Losses			Net
Goodwill, net by Reportable Segment
Las Vegas Locals	$	593,567	$	—		$	(188,079	)	$	405,488
Downtown Las Vegas		6,997		(6,134	)		—			863
Midwest & South		666,798		—			(101,862	)		564,936
Balances, June 30, 2020	$	1,267,362	$	(6,134	)	$	(289,941	)	$	971,287

The following table sets forth the changes in our goodwill, net, during the six months ended June 30, 2020.

(In thousands)	Goodwill, Net
Balance, January 1, 2020	$	1,083,287
Additions		—
Impairments		(112,000	)
Balance, June 30, 2020	$	971,287

The Company has 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 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 charges 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.