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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Note 9. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill are as follows:
(in thousands) |  | GES North America |  |  | GES EMEA |  |  | Pursuit |  |  | Total |
Balance at December 31, 2018 |  | $ | 154,944 |  |  | $ | 29,954 |  |  | $ | 76,432 |  |  | $ | 261,330 |
Business acquisitions |  |  | — |  |  |  | — |  |  |  | 20,684 |  |  |  | 20,684 |
Foreign currency translation adjustments |  |  | 332 |  |  |  | 875 |  |  |  | 4,762 |  |  |  | 5,969 |
Balance at December 31, 2019 |  |  | 155,276 |  |  |  | 30,829 |  |  |  | 101,878 |  |  |  | 287,983 |
Goodwill impairment |  |  | (154,989 | ) |  |  | (29,042 | ) |  |  | (1,758 | ) |  |  | (185,789 | )
Foreign currency translation adjustments |  |  | (287 | ) |  |  | (1,787 | ) |  |  | 1,659 |  |  |  | (415 | )
Other |  |  | — |  |  |  | — |  |  |  | (1,932 | ) |  |  | (1,932 | )
Balance at December 31, 2020 |  | $ | — |  |  | $ | — |  |  | $ | 99,847 |  |  | $ | 99,847 |
The following table summarizes goodwill by reporting unit and segment:
|  | December 31, |
(in thousands) |  | 2020 |  |  | 2019 |
GES: |  |  |  |  |  |  |  |
GES North America: |  |  |  |  |  |  |  |
U.S. |  | $ | — |  |  | $ | 148,277 |
Canada |  |  | — |  |  |  | 6,999 |
GES EMEA |  |  | — |  |  |  | 30,829 |
Total GES |  |  | — |  |  |  | 186,105 |
Pursuit: |  |  |  |  |  |  |  |
Banff Jasper Collection |  |  | 54,856 |  |  |  | 55,524 |
Alaska Collection |  |  | 3,184 |  |  |  | 3,184 |
Glacier Park Collection |  |  | — |  |  |  | 1,758 |
FlyOver |  |  | 41,807 |  |  |  | 41,412 |
Total Pursuit |  |  | 99,847 |  |  |  | 101,878 |
Total Goodwill |  | $ | 99,847 |  |  | $ | 287,983 |
Goodwill is tested for impairment at the reporting unit level on an annual basis as of October 31, and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. We use a discounted expected future cash flow methodology (income approach) to estimate the fair value of our reporting units for purposes of goodwill impairment testing. In early March 2020, as a result of COVID-19 concerns, we began to see event postponements and cancellations at GES, as well as cancelled bookings at Pursuit. This quickly escalated into the shut-down of event activity and tourism as government mandated closures and stay-at-home orders went more broadly into effect around the world. As demand halted, we essentially placed our businesses into a state of hibernation to preserve cash. As government mandated closures and stay-at-home orders started to be lifted, we began to restart our business with enhanced health and safety protocols in place. We phased in most of Pursuit’s attractions and lodging operations starting in May 2020. However, exhibition and event activity remain largely dormant. For GES, we believe that as governments continue to lift restrictions, events in certain geographies will gradually increase. During the first quarter of 2020, we determined that an interim triggering event had occurred due to the deteriorating macroeconomic environment related to the COVID-19 pandemic, resulting in disruptions to our operations and the decline in our stock price. As such, we performed an interim evaluation of goodwill as of March 31, 2020. As a result, we recorded non-cash goodwill impairment charges of $41.9 million associated with GES U.S., $29.0 million associated with GES EMEA, and $1.8 million associated with Pursuit’s Glacier Park Collection. We recorded an income tax benefit of $12.4 million during the three months ended March 31, 2020 related to these goodwill impairment charges. This income tax benefit was reversed during the second quarter of 2020 due to the recording of a valuation allowance. Refer to Note 17 – Income Taxes. During the second quarter of 2020, GES continued to experience event postponements and cancellations and we experienced further declines in our stock price. There was also an increased spread of the COVID-19 virus throughout the United States, which resulted in further closures and government orders that we believed had increased the uncertainty regarding when the live event industry would re-commence and how long it would take to get back to similar pre-COVID-19 business levels. The uncertainty regarding the duration of the current domestic and global economic conditions and whether further deterioration in the macroeconomic environment would continue as a result of the COVID-19 pandemic was factored into our second quarter goodwill impairment analysis. As a result, we recorded a full impairment charge to the remaining GES goodwill balance of $113.1 million during the second quarter of 2020. Our remaining goodwill balance as of December 3 1, 2020 of $99.8 million pertains to our Pursuit business. Although Pursuit’s reporting units continued to operate at a loss due to travel restrictions, we did not record any additional impairment charges during the third or fourth quarter of 2020 as there were no significant changes to our outlook for the future years and the risk profile of the reporting units had not changed. Additionally, we experienced a slight increase in our stock price during the third and fourth quarters of 2020 once news of a vaccine was announced and the vaccine was rolled out. Given the evolving nature of COVID-19 and the uncertain government and consumer reactions, the estimates and assumptions regarding expected future cash flows, discount rates, and terminal values used in our goodwill impairment analysis require considerable judgment and are based on our current estimates of market conditions, financial forecasts, and industry trends. These estimates, however, have inherent uncertainties and different assumptions could lead to materially different results including additional impairment charges in the future. Our accumulated goodwill impairment was $415.5 million as of December 31, 2020 and $229.7 million as of December 31, 2019. Other intangible assets consisted of the following:
|  |  |  | December 31, 2020 |  |  | December 31, 2019 |
(in thousands) |  | Useful Life (Years) |  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Net Carrying Value |  |  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Net Carrying Value |
Intangible assets subject to amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer contracts and relationships |  | 6.4 |  | $ | 38,214 |  |  | $ | (26,288 | ) |  | $ | 11,926 |  |  | $ | 72,219 |  |  | $ | (40,866 | ) |  | $ | 31,353 |
Operating contracts and licenses |  | 36.7 |  |  | 42,012 |  |  |  | (2,405 | ) |  |  | 39,607 |  |  |  | 43,329 |  |  |  | (1,881 | ) |  |  | 41,448 |
In-place lease |  | 13.3 |  |  | 15,347 |  |  |  | (656 | ) |  |  | 14,691 |  |  |  | 15,044 |  |  |  | (231 | ) |  |  | 14,813 |
Tradenames |  | 5.3 |  |  | 5,940 |  |  |  | (2,435 | ) |  |  | 3,505 |  |  |  | 9,423 |  |  |  | (4,338 | ) |  |  | 5,085 |
Non-compete agreements |  | 1.0 |  |  | 770 |  |  |  | (616 | ) |  |  | 154 |  |  |  | 2,077 |  |  |  | (1,775 | ) |  |  | 302 |
Other |  | 7.2 |  |  | 818 |  |  |  | (102 | ) |  |  | 716 |  |  |  | 802 |  |  |  | (66 | ) |  |  | 736 |
Total amortized intangible assets |  |  |  |  | 103,101 |  |  |  | (32,502 | ) |  |  | 70,599 |  |  |  | 142,894 |  |  |  | (49,157 | ) |  |  | 93,737 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Business licenses |  |  |  |  | 573 |  |  |  | — |  |  |  | 573 |  |  |  | 571 |  |  |  | — |  |  |  | 571 |
Other intangible assets |  |  |  | $ | 103,674 |  |  | $ | (32,502 | ) |  | $ | 71,172 |  |  | $ | 143,465 |  |  | $ | (49,157 | ) |  | $ | 94,308 |
Intangible asset amortization expense was $6.4 million during 2020, $10.6 million during 2019, and $11.0 million during 2018. We recorded a non-cash impairment charge to intangible assets of $15.7 million during 2020 related our U.S audio-visual production business and $1.5 million during 2019 related to our United Kingdom audio-visual production business. The duration and impact of COVID-19 may result in additional future impairment charges as facts and circumstances evolve. At December 31, 2020, the estimated future amortization expense related to intangible assets subject to amortization is as follows:
(in thousands) |  |  |  |
Year ending December 31, |  |  |  |
2021 |  | $ | 5,216 |
2022 |  |  | 5,129 |
2023 |  |  | 4,466 |
2024 |  |  | 3,510 |
2025 |  |  | 2,218 |
Thereafter |  |  | 50,060 |
Total |  | $ | 70,599 |

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