Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Note 4 – Goodwill and Intangible Assets, Net

Goodwill and intangible assets, net, consist of the following:

	September 30, 2016			December 31, 2015
	(In thousands)
Goodwill	$	105,655		$	96,288

Indefinite-lived intangible assets:
Gaming licenses	$	960		$	960
Trade names		12,200			12,200
Other		110			50
	$	13,270		$	13,210

Finite-lived intangible assets:
Customer relationships	$	78,100		$	59,200
Less: Accumulated amortization		(5,570	)		(1,744	)
		72,530			57,456
Player relationships		7,300			7,600
Less: Accumulated amortization		(750	)		(279	)
		6,550			7,321
Gaming license		2,100			2,100
Less: Accumulated amortization		(472	)		(367	)
		1,628			1,733
Non-compete agreements		6,000			300
Less: Accumulated amortization		(845	)		(63	)
		5,155			237
Other intangible assets		1,648			948
Less: Accumulated amortization		(237	)		(81	)
		1,411			867

Total finite-lived intangible assets, net		87,274			67,614
Total intangible assets, net	$	100,544		$	80,824

Goodwill represents the original goodwill allocation related to the Merger and final adjustments to purchase price allocations during the measurement period. The impact of the final purchase price allocation adjustments related to the Merger on the Company's results of operations and financial position was immaterial. The Company may continue to record adjustments to the carrying value of assets acquired with a corresponding offset to goodwill during the measurement period related to the Montana Acquisitions, which can be up to one year from the date of the consummation of the acquisitions. See Note 2, Merger and Acquisitions, for a description of the intangible assets acquired through the Merger and the Montana Acquisitions.

Total amortization expense related to intangible assets was $2.0 million and $1.1 million for the three months ended September 30, 2016 and 2015, respectively, and $5.4 million and $1.2 million for the nine months ended September 30, 2016 and 2015, respectively. Estimated future amortization expense related to intangible assets, which includes acquired intangible assets recorded on a preliminary basis, is as follows:

	Remainder of
	2016		2017		2018		2019		2020		2021		Thereafter
	(In thousands)
Estimated amortization expense	$	1,940	$	7,698	$	7,610	$	7,610	$	7,463	$	6,481	$	48,472

- 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 + Details