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Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets A reconciliation of goodwill and accumulated goodwill impairment losses, by reportable segment, is as follows:
(in millions) | Northeast |  | South |  | West |  | Midwest |  | Other |  | Total
Balance as of December 31, 2019 |  |  |  |  |  |  |  |  |  |  |
Goodwill, gross | $ | 914.3 |  |  | $ | 236.6 |  |  | $ | 216.8 |  |  | $ | 1,116.7 |  |  | $ | 156.1 |  |  | $ | 2,640.5 |
Accumulated goodwill impairment losses | (717.9) |  |  | (52.0) |  |  | (16.6) |  |  | (495.6) |  |  | (87.7) |  |  | (1,369.8) |
Goodwill, net | 196.4 |  |  | 184.6 |  |  | 200.2 |  |  | 621.1 |  |  | 68.4 |  |  | 1,270.7 |
Impairment losses during year-to-date period | (43.5) |  |  | (9.0) |  |  | — |  |  | (60.5) |  |  | — |  |  | (113.0) |
Balance as of September 30, 2020 |  |  |  |  |  |  |  |  |  |  |
Goodwill, gross | 914.3 |  |  | 236.6 |  |  | 216.8 |  |  | 1,116.7 |  |  | 156.1 |  |  | 2,640.5 |
Accumulated goodwill impairment losses | (761.4) |  |  | (61.0) |  |  | (16.6) |  |  | (556.1) |  |  | (87.7) |  |  | (1,482.8) |
Goodwill, net | $ | 152.9 |  |  | $ | 175.6 |  |  | $ | 200.2 |  |  | $ | 560.6 |  |  | $ | 68.4 |  |  | $ | 1,157.7 |
2020 Interim Assessment for Impairment During the first quarter of 2020, we identified an indicator of impairment on our goodwill and other intangible assets due to the COVID-19 pandemic. As a result of the COVID-19 pandemic, we revised our cash flow projections to reflect the current economic environment, including the uncertainty surrounding the nature, timing and extent of reopening our gaming properties. As a result of the interim assessment for impairment, during the first quarter of 2020, we recognized impairments on our goodwill, gaming licenses and trademarks of $113.0 million, $437.0 million and $61.5 million, respectively. The estimated fair values of the reporting units were determined through a combination of a discounted cash flow model and a market-based approach, which utilized Level 3 inputs. The estimated fair values of the gaming licenses and trademarks were determined by using discounted cash flow models, which utilized Level 3 inputs. As noted in the table above, the goodwill impairments pertained to our Northeast, South and Midwest segments, in the amounts of $43.5 million, $9.0 million and $60.5 million, respectively. The gaming license impairments pertained to our Northeast, South and Midwest segments in the amounts of $177.0 million, $166.0 million and $94.0 million, respectively. The trademark impairments pertained to our Northeast, South, Midwest and West segments, in the amounts of $17.0 million, $17.0 million, $15.0 million and $12.5 million, respectively. There were no impairment charges recorded on goodwill and other intangible assets during the three months ended September 30, 2020 or the three and nine months ended September 30, 2019. The aforementioned impairments are included in “Impairment losses” within our unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 17, “Fair Value Measurements,” for quantitative information about the significant unobservable inputs used in the fair value measurements of other intangible assets. As of March 31, 2020, five reporting units had negative carrying amounts. The amount of goodwill at these reporting units was as follows (in millions):
Northeast segment |
Hollywood Casino at Charles Town Races | $ | 8.7 |
Hollywood Casino Toledo | $ | 5.8 |
Plainridge Park Casino | $ | 6.3 |
South segment |
Boomtown New Orleans | $ | 5.2 |
Midwest segment |
Ameristar Council Bluffs | $ | 36.2 |
The table below presents the gross carrying amount, accumulated amortization and net carrying amount of each major class of other intangible assets:
| September 30, 2020 |  | December 31, 2019
(in millions) | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Indefinite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |
Gaming licenses | $ | 1,246.0 |  |  | $ | — |  |  | $ | 1,246.0 |  |  | $ | 1,681.9 |  |  | $ | — |  |  | $ | 1,681.9 |
Trademarks | 240.9 |  |  | — |  |  | 240.9 |  |  | 302.4 |  |  | — |  |  | 302.4 |
Other | 0.7 |  |  | — |  |  | 0.7 |  |  | 0.7 |  |  | — |  |  | 0.7 |
Amortizing intangible assets |  |  |  |  |  |  |  |  |  |  |
Customer relationships | 106.8 |  |  | (82.9) |  |  | 23.9 |  |  | 104.4 |  |  | (69.0) |  |  | 35.4 |
Other | 37.9 |  |  | (34.3) |  |  | 3.6 |  |  | 36.1 |  |  | (30.0) |  |  | 6.1 |
Total other intangible assets | $ | 1,632.3 |  |  | $ | (117.2) |  |  | $ | 1,515.1 |  |  | $ | 2,125.5 |  |  | $ | (99.0) |  |  | $ | 2,026.5 |
Amortization expense related to our amortizing intangible assets was $5.9 million and $18.2 million for the three and nine months ended September 30, 2020, respectively, as compared to $6.4 million and $18.7 million for the three and nine months ended September 30, 2019, respectively. The following table presents the estimated amortization expense based on our amortizing intangible assets as of September 30, 2020 (in millions):
Years ending December 31, |
2020 (excluding the nine months ended September 30, 2020) | $ | 3.0 |
2021 | 7.1 |
2022 | 5.2 |
2023 | 3.7 |
2024 | 3.6 |
Thereafter | 4.9 |
Total | $ | 27.5 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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