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Note 4 - Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 4. GOODWILL AND INTANGIBLE ASSETS, NET

Intangible assets, net consist of the following:

	*September 30, 2023*
	*Weighted*
	*Useful Life*		*Gross*					*Accumulated*			*Effect of Foreign*
	*Remaining*		*Carrying*		*Accumulated*			*Impairment*			*Currency*		*Intangible*
*(In thousands)*	*(in years)*		*Value*		*Amortization*			*Losses*			*Exchange*		*Assets, Net*
*Amortizing intangibles*
Customer relationships		0.4	$	35,050	$	(34,776	)	$	—		$	—	$	274
Host agreements		9.7		58,000		(20,622	)		—			—		37,378
Development agreement		5.9		21,373		(3,434	)		—			—		17,939
Developed technology		8.8		39,068		(3,464	)		—			35		35,639
B2B relationships		6.3		28,000		(3,588	)		—			9		24,421
B2C relationships		11.1		13,000		(993	)		—			—		12,007
				194,491		(66,877	)		—			44		127,658

*Indefinite lived intangible assets*
Trademarks	Indefinite			204,000		—			(36,375	)		—		167,625
Gaming license rights	Indefinite			1,378,081		(33,960	)		(222,174	)		—		1,121,947
				1,582,081		(33,960	)		(258,549	)		—		1,289,572
Balances, September 30, 2023			$	1,776,572	$	(100,837	)	$	(258,549	)	$	44	$	1,417,230

	*December 31, 2022*
	*Weighted*
	*Useful Life*		*Gross*					*Accumulated*			*Effect of Foreign*
	*Remaining*		*Carrying*		*Accumulated*			*Impairment*			*Currency*		*Intangible*
*(In thousands)*	*(in years)*		*Value*		*Amortization*			*Losses*			*Exchange*		*Assets, Net*
*Amortizing intangibles*
Customer relationships		0.6	$	63,050	$	(62,070	)	$	—		$	—	$	980
Host agreements		10.4		58,000		(17,722	)		—			—		40,278
Development agreement		6.6		21,373		(1,145	)		—			—		20,228
Developed technology		9.8		36,445		(600	)		—			53		35,898
B2B relationships		7.0		28,000		(652	)		—			12		27,360
B2C relationships		11.8		13,000		(181	)		—			—		12,819
				219,868		(82,370	)		—			65		137,563

*Indefinite lived intangible assets*
Trademarks	Indefinite			204,000		—			(36,375	)		—		167,625
Gaming license rights	Indefinite			1,378,081		(33,960	)		(222,174	)		—		1,121,947
				1,582,081		(33,960	)		(258,549	)		—		1,289,572
Balances, December 31, 2022			$	1,801,949	$	(116,330	)	$	(258,549	)	$	65	$	1,427,135

The following table presents the future amortization expense for our amortizing intangible assets as of September 30, 2023:

*(In thousands)*	*Customer Relationships*		*Host Agreements*		*Development Agreement*		*Developed Technology*		*B2B Relationships*		*B2C Relationships*		*Total*
*For the year ending December 31,*
2023 (excluding nine months ended September 30, 2023)	$	234	$	967	$	764	$	1,058	$	975	$	271	$	4,269
2024		40		3,867		3,053		4,208		3,914		1,083		16,165
2025		—		3,867		3,053		4,208		3,914		1,083		16,125
2026		—		3,867		3,053		4,208		3,914		1,083		16,125
2027		—		3,867		3,053		4,208		3,914		1,083		16,125
Thereafter		—		20,943		4,963		17,749		7,790		7,404		58,849
Total future amortization	$	274	$	37,378	$	17,939	$	35,639	$	24,421	$	12,007	$	127,658

BOYD GAMING CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) — (Continued)

as of September 30, 2023 and December 31, 2022 and for the three and nine months ended September 30, 2023 and 2022

______________________________________________________________________________________________________

Goodwill consists of the following:

	*September 30, 2023*
									*Effect of*
	*Gross*					*Accumulated*			*Foreign*
	*Carrying*		*Accumulated*			*Impairment*			*Currency*		*Goodwill,*
*(In thousands)*	*Value*		*Amortization*			*Losses*			*Exchange*		*Net*
Goodwill, net by Segment
Las Vegas Locals	$	593,567	$	—		$	(188,079	)	$	—	$	405,488
Downtown Las Vegas		6,997		(6,134	)		—			—		863
Midwest & South		636,269		—			(107,470	)		—		528,799
Online		94,037		—			—			32		94,069
Managed & Other		30,529		—			(30,529	)		—		—
Balances, September 30, 2023	$	1,361,399	$	(6,134	)	$	(326,078	)	$	32	$	1,029,219

	*December 31, 2022*
									*Effect of*
	*Gross*					*Accumulated*			*Foreign*
	*Carrying*		*Accumulated*			*Impairment*			*Currency*		*Goodwill,*
*(In thousands)*	*Value*		*Amortization*			*Losses*			*Exchange*		*Net*
Goodwill, net by Segment
Las Vegas Locals	$	593,567	$	—		$	(188,079	)	$	—	$	405,488
Downtown Las Vegas		6,997		(6,134	)		—			—		863
Midwest & South		636,269		—			(107,470	)		—		528,799
Online		94,037		—			—			20		94,057
Managed & Other		30,529		—			(25,992	)		—		4,537
Balances, December 31, 2022	$	1,361,399	$	(6,134	)	$	(321,541	)	$	20	$	1,033,744

Goodwill as of December 31, 2022 has been recast to reflect changes made in first quarter 2023 to the Company's segments. Goodwill in total as of December 31, 2022 did not change. See additional discussion in Note 10, Segment Information.

During the nine months ended September 30, 2023, we recorded goodwill impairment charges of $4.5 million related to Managed & Other, our aggregated other nonreportable operating segments category. These noncash impairment charges are recorded in impairment of assets on the condensed consolidated statements of operations.