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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  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​