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Note 3 - Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 3. GOODWILL AND INTANGIBLE ASSETS, NET

Intangible assets, net consist of the following:

	*September 30, 2022*
	*Weighted*	*Gross*					*Accumulated*
	*Useful Life*	*Carrying*		*Accumulated*			*Impairment*			*Intangible*
*(In thousands)*	*Remaining (in years)*	*Value*		*Amortization*			*Losses*			*Assets, Net*
*Amortizing intangibles*
Customer relationships	0.8	$	68,100	$	(66,289	)	$	—		$	1,811
Host agreements	10.7		58,000		(16,756	)		—			41,244
Development agreement ⁽¹⁾	6.9		21,373		(382	)		—			20,991
			147,473		(83,427	)		—			64,046

*Indefinite lived intangible assets*
Trademarks	Indefinite		204,000		—			(32,775	)		171,225
Gaming license rights	Indefinite		1,378,081		(33,960	)		(222,174	)		1,121,947
			1,582,081		(33,960	)		(254,949	)		1,293,172
Balances, September 30, 2022		$	1,729,554	$	(117,387	)	$	(254,949	)	$	1,357,218

⁽¹⁾ Amortization of the development agreement began on August 15, 2022 upon the opening of the Sky River Casino.

	*December 31, 2021*
	*Weighted*	*Gross*					*Accumulated*
	*Useful Life*	*Carrying*		*Accumulated*			*Impairment*			*Intangible*
*(In thousands)*	*Remaining (in years)*	*Value*		*Amortization*			*Losses*			*Assets, Net*
*Amortizing intangibles*
Customer relationships	1.5	$	68,100	$	(63,798	)	$	—		$	4,302
Host agreements	11.4		58,000		(13,856	)		—			44,144
Development agreement	—		21,373		—			—			21,373
			147,473		(77,654	)		—			69,819

*Indefinite lived intangible assets*
Trademarks	Indefinite		204,000		—			(27,200	)		176,800
Gaming license rights	Indefinite		1,377,935		(33,960	)		(222,174	)		1,121,801
			1,581,935		(33,960	)		(249,374	)		1,298,601
Balances, December 31, 2021		$	1,729,408	$	(111,614	)	$	(249,374	)	$	1,368,420

The following table presents the future amortization expense for our amortizing intangible assets as of September 30, 2022:

*(In thousands)*	Customer Relationships		Host Agreements		Development Agreement		Total
*For the year ending December 31,*
2022 (excluding nine months ended September 30, 2022)	$	831	$	967	$	763	$	2,561
2023		940		3,867		3,053		7,860
2024		40		3,867		3,053		6,960
2025		—		3,867		3,053		6,920
2026		—		3,867		3,053		6,920
Thereafter		—		24,809		8,016		32,825
Total future amortization	$	1,811	$	41,244	$	20,991	$	64,046

As a result of our third quarter 2022 impairment review, the Company recorded an impairment charge of $5.6 million for a trademark related to a property in our Midwest & South segment, which is included in impairment of assets for the three and nine months ended September 30, 2022. To the extent gaming volumes deteriorate in the near future, discount rates continue to increase significantly, or we do not meet our projected performance, we may recognize further impairments, and such impairments could be material.

Goodwill 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, September 30, 2022	$	1,267,362	$	(6,134	)	$	(289,941	)	$	971,287

There have been no changes in goodwill, net, during the nine months ended September 30, 2022.