XML 75 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Goodwill and Other Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2013
Goodwill and Other Intangible Assets |
Goodwill and Other Intangible Assets | 9. Goodwill and Other Intangible Assets Goodwill consists mainly of goodwill from the acquisitions of Hollywood Casino Corporation in March 2003, Argosy Gaming Company in October 2005, Zia Park Casino in April 2007, and Harrah's St. Louis facility in November 2012. A reconciliation of goodwill and accumulated goodwill impairment losses is as follows (in thousands):
Balance at January 1, 2012: |  |  |  |
Goodwill |  | $ | 2,014,216 |
Accumulated goodwill impairment losses |  |  | (833,857 | )
​ | ​ | ​ | ​ | ​
Goodwill, net |  | $ | 1,180,359 |
​ | ​ | ​ | ​ | ​
Goodwill acquired |  |  | 205,664 |
Other |  |  | (5,334 | )
​ | ​ | ​ | ​ | ​
Balance at December 31, 2012: |  |  |  |
Goodwill |  | $ | 2,214,546 |
Accumulated goodwill impairment losses |  |  | (833,857 | )
​ | ​ | ​ | ​ | ​
Goodwill, net |  | $ | 1,380,689 |
​ | ​ | ​ | ​ | ​
Goodwill impairment losses |  |  | (807,464 | )
Contribution of Hollywood Casino Baton Rouge to GLPI |  |  | (75,521 | )
Other |  |  | (5,306 | )
​ | ​ | ​ | ​ | ​
Balance at December 31, 2013: |  |  |  |
Goodwill |  | $ | 2,133,719 |
Accumulated goodwill impairment losses |  |  | (1,641,321 | )
​ | ​ | ​ | ​ | ​
Goodwill, net |  | $ | 492,398 |
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
Indefinite-life intangible assets consist mainly of gaming licenses and previously racing permits. The table below presents the gross carrying value, accumulated amortization, and net book value of each major class of other intangible assets at December 31, 2013 and 2012:
|  | 2013 |  | 2012 |
--- | --- | --- | --- | --- | ---
|  | (in thousands) |
December 31, |  | Gross Carrying Value |  | Accumulated Amortization |  | Net Book Value |  | Gross Carrying Value |  | Accumulated Amortization |  | Net Book Value |
Indefinite-life intangible assets |  | $ | 349,224 |  | $ | — |  | $ | 349,224 |  | $ | 675,901 |  | $ | — |  | $ | 675,901 |
Argosy Casino Sioux City gaming license |  |  | 20,949 |  |  | 12,569 |  |  | 8,380 |  |  | 24,068 |  |  | — |  |  | 24,068 |
Other intangible assets |  |  | 55,665 |  |  | 53,621 |  |  | 2,044 |  |  | 56,661 |  |  | 50,153 |  |  | 6,508 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total |  | $ | 425,838 |  | $ | 66,190 |  | $ | 359,648 |  | $ | 756,630 |  | $ | 50,153 |  | $ | 706,477 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
For the year ended December 31, 2013, primarily as a result the Spin-Off, the Company recorded pre-tax goodwill and other intangible assets impairment charges of $738.8 million and $319.6 million, respectively, as it determined that a portion of the value of its goodwill and other intangible assets was impaired. The contribution of real estate to GLPI was accounted for as a contribution of assets rather than a business. Therefore, the historical goodwill and other intangible assets of the Company (with the exception of Hollywood Casino Baton Rouge and Hollywood Casino Perryville since the Company contributed them to GLPI) were not contributed to GLPI as part of the Spin-Off. Subsequent to the Spin-Off, the Company is responsible monthly for a single significant rental payment to GLPI under the Master Lease. For impairment valuation and accounting purposes, the Company allocates the rental obligation to its reporting units that are a party to the Master Lease. Additionally, as a result of a new gaming license being awarded for the development of a new casino in Sioux City, Iowa to another applicant in April 2013 (see Note 12 for further details), the Company recorded a pre-tax goodwill and other intangible asset impairment charge of $68.7 million and $3.1 million, respectively, for Argosy Casino Sioux City during the year ended December 31, 2013, as the Company determined that the fair value of its Sioux City reporting unit was less than its carrying amount based on the Company's analysis of the estimated future expected cash flows the Company anticipates receiving from the operations of the Sioux City facility. Furthermore, the remaining gaming license for Argosy Casino Sioux City of $20.9 million at time of the impairment is now accounted for as a definite lived intangible asset and will be amortized on a straight line basis through June 2014, which is the anticipated opening date of the new facility. In addition, in conjunction with the Spin-Off, the Company contributed Hollywood Casino Baton Rouge and Hollywood Casino Perryville, which had goodwill of $75.5 million and a gaming license of $9.6 million, respectively, to GLPI on November 1, 2013. The Company's intangible asset amortization expense was $16.1 million, $0.8 million, and $2.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. The following table presents expected intangible asset amortization expense based on existing intangible assets at December 31, 2013 (in thousands):
2014 |  | $ | 10,405 |
2015 |  |  | 19 |
​ | ​ | ​ | ​ | ​
Total |  | $ | 10,424 |
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
The Company's remaining goodwill and other intangible assets by reporting unit at December 31, 2013 is shown below (in thousands):
Reporting Unit |  | Goodwill |  | Other Intangible Assets |
--- | --- | --- | --- | --- | ---
Hollywood Casino St. Louis |  | $ | 59,035 |  | $ | 161,596 |
Argosy Casino Riverside |  |  | 154,332 |  |  | 4,964 |
Zia Park Casino |  |  | 144,171 |  |  | 1,420 |
Hollywood Casino Joliet |  |  | 12,562 |  |  | 64,842 |
Hollywood Casino at Penn National Race Course |  |  | 1,497 |  |  | 67,607 |
Hollywood Casino Lawrenceburg |  |  | — |  |  | 50,000 |
Hollywood Casino Aurora |  |  | 37,687 |  |  | — |
Argosy Casino Alton |  |  | 30,949 |  |  | — |
Argosy Casino Sioux City |  |  | — |  |  | 8,380 |
Others |  |  | 52,165 |  |  | 839 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total |  | $ | 492,398 |  | $ | 359,648 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​

X
- Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration