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Note 2 - Acquisitions | 12 Months Ended
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Dec. 31, 2024
Notes to Financial Statements |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | NOTE 2. ACQUISITIONS Resorts Digital Gaming, LLC On September 1, 2024, Boyd Interactive Gaming, Inc. ("Boyd Interactive Inc."), a wholly owned subsidiary of the Company, completed its acquisition of Resorts Digital, pursuant to a Membership Interest Purchase Agreement (the "Membership Agreement"), entered into on May 15, 2024, by and among Boyd Interactive Inc., DGMB Casino Holding, LLC and DGMB Casino SPE Corp. Resorts Digital is now a wholly owned subsidiary of Boyd Interactive Inc. Resorts Digital is an online casino operator based in New Jersey, operating a dual-brand strategy across Resorts Casino and Mohegan Sun. This acquisition is another step forward in building out our online casino business. In addition to acquiring the existing online business under both brands, the acquisition includes a 20-year marketing agreement with a 10-year renewal option that provides for marketing and promotional services at Resorts Casino in Atlantic City, New Jersey. This marketing agreement allows us to provide our online customers in New Jersey access to a gaming entertainment property where they can redeem points earned under our loyalty program for such amenities as complimentary food & beverage and hotel rooms. The acquired company is aggregated into our Online segment (See Note 14, Segment Information). Consideration Transferred The fair value of the consideration transferred on the date of the Membership Agreement included the purchase price of the net assets transferred. The total gross cash consideration was $34.0 million (with $3.7 million of cash and restricted cash acquired, for total cash paid for acquisitions, net of cash received of $30.3 million). Status of Purchase Price Allocation The Company followed the acquisition method of accounting pursuant to FASB ASC Topic 805. For purposes of these consolidated financial statements, we have allocated the purchase price to the assets acquired and the liabilities assumed based on their fair values as determined by management with the assistance from third-party specialists. The excess of the purchase price over the fair value of the assets acquired and liabilities assumed was recorded as goodwill. The Company recognized the assets acquired and liabilities assumed in the acquisition based on fair value estimates as of the date of the acquisition. In the fourth quarter of 2024, the Company finalized its determination of the fair value of the intangible assets acquired, along with the related allocation of goodwill. There was no change in the final determination of fair value of the intangible assets acquired or the related allocation of goodwill from the preliminary values included in the condensed financial statements at September 30, 2024. The following table summarizes the preliminary purchase price allocation reported in the Company's financial statements as of September 30, 2024, and the adjustments to the preliminary purchase price allocation to derive the final purchase price allocation, as reflected in the Company's financial statements as of December 31, 2024:
|  | Preliminary Allocation |  |  |  |  |  |  | Final Purchase Price |
(In thousands) |  | September 30, 2024 |  |  | Adjustments |  |  | Allocation |
Current assets |  | $ | 4,316 |  |  | $ | (13 | ) |  | $ | 4,303 |
Other assets |  |  | 110 |  |  |  | — |  |  |  | 110 |
Intangible assets |  |  | 22,800 |  |  |  | — |  |  |  | 22,800 |
Total acquired assets |  |  | 27,226 |  |  |  | (13 | ) |  |  | 27,213 |
Current liabilities |  |  | 3,918 |  |  |  | (27 | ) |  |  | 3,891 |
Other liabilities |  |  | 28 |  |  |  | — |  |  |  | 28 |
Total liabilities assumed |  |  | 3,946 |  |  |  | (27 | ) |  |  | 3,919 |
Net identifiable assets acquired |  |  | 23,280 |  |  |  | 14 |  |  |  | 23,294 |
Goodwill |  |  | 10,700 |  |  |  | — |  |  |  | 10,700 |
Net assets acquired |  | $ | 33,980 |  |  | $ | 14 |  |  | $ | 33,994 |
The following table summarizes the values assigned to acquired intangible assets and weighted average useful lives of definite-lived intangible assets:
| Useful Lives |  |  |  |
(In thousands) | (in years) |  | As Recorded |
Gaming license right | Indefinite |  | $ | 15,000 |
Customer relationships | 5 |  |  | 3,300 |
Marketing agreement | 20 |  |  | 4,500 |
Total intangible assets acquired |  |  | $ | 22,800 |
The goodwill recognized is the excess of the purchase price over the preliminary values assigned to the assets acquired and liabilities assumed. All of the goodwill was assigned to the Online reportable segment. The Company expensed $0.1 million of acquisition related costs during the year ended December 31, 2024. These costs are included in project development, preopening and writedowns on the consolidated statements of operations. The revenue and earnings from the acquisition are not material for the period subsequent to acquisition through December 31, 2024. The pro-forma revenue and earnings from the acquisition assuming all impacts as if it had been completed on January 1, 2024, are not material through December 31, 2024. Pala Interactive On November 1, 2022, Boyd Interactive Inc., a wholly owned subsidiary of the Company, completed its acquisition of Pala Interactive and its subsidiaries, including its Canadian subsidiary Pala Canada, pursuant to a Purchase Agreement and Plan of Merger (the "Merger Agreement"), entered into on March 28, 2022, by and among Boyd Interactive Inc., Boyd Phoenix Acquisition, LLC ("Merger Sub"), a wholly owned subsidiary of Boyd Interactive Inc., Boyd Phoenix Canada Inc., a wholly owned subsidiary of Boyd Gaming, Pala Interactive, Pala Canada Holdings, LLC and Shareholder Representative Services LLC as representative of the holders of the membership interests of Pala Interactive. Pursuant to the Merger Agreement, Merger Sub merged with and into Pala Interactive (the "Merger"), with Pala Interactive surviving the Merger. Pala Interactive is now a wholly owned subsidiary of Boyd Interactive Inc. Pala Interactive is an innovative online gaming te chnology company that provides proprietary solutions on both a B2B and B2C basis in regulated markets across the United States and Canada. We view this acquisition as an important step forward in our online growth strategy as it provides us with the talent and technology to begin building our regional online casino business. While online casinos are now limited to just a few states, over the long term we believe there is growth and additional profit potential for our Company from online gaming. By owning and operating an online gaming business, we will be able to leverage our nationwide portfolio and extensive customer database to grow in the online casino space. The acquired company is aggregated into our Online segment (See Note 14, Segment Information). Consideration Transferred The fair value of the consideration transferred on the date of the Merger Agreement included the purchase price of the net assets transferred. The total gross cash consideration was $175.2 million (with $7.3 million of cash acquired, for total cash paid for acquisitions, net of cash received of $167.9 million). Status of Purchase Price Allocation The Company followed the acquisition method of accounting pursuant to FASB ASC Topic 805. For purposes of these consolidated financial statements, we have allocated the purchase price to the assets acquired and the liabilities assumed based on their fair values as determined by management with the assistance from third-party specialists. The excess of the purchase price over the fair value of the assets acquired and liabilities assumed was recorded as goodwill. The Company recognized the assets acquired and liabilities assumed in the acquisition based on fair value estimates as of the date of the Merger. In the second quarter of 2023, the Company finalized its determination of the fair value of the intangible assets acquired, along with the related allocation of goodwill. There was no change in the final determination of fair value of the intangible assets acquired or the related allocation of goodwill from the preliminary values included in the consolidated financial statements at December 31, 2022. The following table summarizes the purchase price allocation as of the acquisition date of November 1, 2022:
(In thousands) |  | As Recorded |
Current assets |  | $ | 10,456 |
Property and equipment |  |  | 445 |
Other assets |  |  | 740 |
Intangible assets |  |  | 77,000 |
Total acquired assets |  |  | 88,641 |
Current liabilities |  |  | 4,462 |
Other liabilities |  |  | 3,007 |
Total liabilities assumed |  |  | 7,469 |
Net identifiable assets acquired |  |  | 81,172 |
Goodwill |  |  | 94,037 |
Net assets acquired |  | $ | 175,209 |
The following table summarizes the values assigned to acquired property and equipment and estimated useful lives:
|  | Useful Lives |  |  |  |  |
(In thousands) |  | (in years) |  |  | As Recorded |
Buildings and improvement |  |  | 5 |  |  | $ | 22 |
Furniture and equipment |  |  | 2 - 5 |  |  |  | 423 |
Property and equipment acquired |  |  |  |  |  | $ | 445 |
The following table summarizes the values assigned to acquired intangible assets and weighted average useful lives of definite-lived intangible assets:
|  | Useful Lives |  |  |  |  |
(In thousands) |  | (in years) |  |  | As Recorded |
Developed technology |  |  | 10 |  |  | $ | 36,000 |
B2B relationships |  |  | 7 - 10 |  |  |  | 28,000 |
B2C relationships |  |  | 12 |  |  |  | 13,000 |
Total intangible assets acquired |  |  |  |  |  | $ | 77,000 |
The goodwill recognized is the excess of the purchase price over the values assigned to the assets acquired and liabilities assumed. All of the goodwill was assigned to reporting units included in the Online segment. All of the goodwill, except $7.8 million allocated to Pala Canada, is expected to be deductible for income tax purposes. The Company expensed acquisition related costs of $0.7 million and $5.5 million during the years ended December 31, 2023 and 2022, respectively. There were no acquisition related costs during the year ended December 31, 2024. These costs are included in project development, preopening and writedowns on the consolidated statements of operations. The revenue and earnings from the Merger are not material for the period subsequent to acquisition through December 31, 2022. The pro-forma revenue and earnings from the Merger assuming all impacts as if it had been completed on January 1, 2022, are not material through December 31, 2022.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent + Details
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