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Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 2022
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) |  | Pursuit |
Balance at December 31, 2021 |  | $ | 112,078 |
Business acquisition |  |  | 16,787 |
Foreign currency translation adjustments |  |  | (9,449 | )
Balance at September 30, 2022 |  | $ | 119,416 |
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 the third quarter of 2022, changes in macroeconomic facts and circumstances, particularly high inflation and the resulting rise in interest rates, has resulted in reduced expectations of fair value. We considered these circumstances and the potential long-term impact on our reporting units and determined that an indicator of possible impairment existed within our FlyOver reporting unit due to slower than anticipated visitation ramp up. Accordingly, we performed a quantitative impairment analysis to determine the fair value of this reporting unit as of September 30, 2022, resulting in a fair value that exceeded the carrying amount by approximately 10%. Accordingly, no impairment charge was recorded. The carrying amount of goodwill for the FlyOver reporting unit was $38.3 million as of September 30, 2022. We will continue to closely monitor actual results versus expectations as well as whether and to what extent any significant changes in current events or conditions result in corresponding changes to our expectations about future estimated cash flows and discount rates. If our adjusted expectations of the operating results of FlyOver do not materialize, or the discount rate increases (based on increases in interest rates, market rates of return or market volatility), it is possible that we may be required to record goodwill impairment charges in the future, which may be material. Other intangible assets consisted of the following:
|  |  |  | September 30, 2022 |  |  | December 31, 2021 |
(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 |  | 7.2 |  | $ | 36,879 |  |  | $ | (29,120 | ) |  | $ | 7,759 |  |  | $ | 36,848 |  |  | $ | (28,372 | ) |  | $ | 8,476 |
Operating contracts and licenses |  | 34.4 |  |  | 38,285 |  |  |  | (3,250 | ) |  |  | 35,035 |  |  |  | 40,927 |  |  |  | (2,660 | ) |  |  | 38,267 |
In-place lease |  | 34.0 |  |  | 14,133 |  |  |  | (1,283 | ) |  |  | 12,850 |  |  |  | 15,464 |  |  |  | (1,084 | ) |  |  | 14,380 |
Tradenames |  | 4.2 |  |  | 5,441 |  |  |  | (3,085 | ) |  |  | 2,356 |  |  |  | 5,626 |  |  |  | (2,819 | ) |  |  | 2,807 |
Other |  | 5.4 |  |  | 754 |  |  |  | (151 | ) |  |  | 603 |  |  |  | 824 |  |  |  | (139 | ) |  |  | 685 |
Total amortized intangible assets |  |  |  |  | 95,492 |  |  |  | (36,889 | ) |  |  | 58,603 |  |  |  | 99,689 |  |  |  | (35,074 | ) |  |  | 64,615 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Business licenses |  |  |  |  | 564 |  |  |  | — |  |  |  | 564 |  |  |  | 574 |  |  |  | — |  |  |  | 574 |
Other intangible assets, net |  |  |  | $ | 96,056 |  |  | $ | (36,889 | ) |  | $ | 59,167 |  |  | $ | 100,263 |  |  | $ | (35,074 | ) |  | $ | 65,189 |
Intangible asset amortization expense (excluding amortization expense of ROU assets) was $1.4 million for the three months ended September 30, 2022 and $4.0 million for the nine months ended September 30, 2022. Intangible assets amortization expense was $1.6 million for the three months ended September 30, 2021 and $4.4 million for the nine months ended September 30, 2021. At September 30, 2022, the estimated future amortization expense related to intangible assets subject to amortization is as follows:
(in thousands) |  |  |
Year ending December 31, |  |  |
Remainder of 2022 |  | $ | 1,177 |
2023 |  |  | 4,515 |
2024 |  |  | 3,576 |
2025 |  |  | 2,281 |
2026 |  |  | 2,248 |
Thereafter |  |  | 44,806 |
Total |  | $ | 58,603 |

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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 https://asc.fasb.org/topic&trid=2144416 + Details
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