Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Note 5 – Goodwill and Intangible Assets, Net

The following table summarizes goodwill activity by reportable segment:

(In thousands)	Casinos			Distributed Gaming		Total Goodwill
Balance, January 1, 2016	$	17,080		$	79,208	$	96,288
Goodwill acquired during the year		—			8,193		8,193
Acquired goodwill adjusted during the year		(9,284	)		10,458		1,174
Balance, December 31, 2016		7,796			97,859		105,655
Goodwill acquired during the year		52,479			—		52,479
Balance, December 31, 2017	$	60,275		$	97,859	$	158,134

Goodwill represents the initial goodwill allocation related to the Merger and the Montana Acquisitions and final adjustments to purchase price allocations during the applicable measurement periods, and the initial goodwill allocation related to the American Acquisition. The impact of the final purchase price allocation adjustments related to the Merger and the Montana Acquisitions 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 American Acquisition, which can be up to one year from the date of the consummation of the acquisition. See Note 3, Merger and Acquisitions, for a description of the intangible assets acquired through the Merger, the Montana Acquisitions and the American Acquisition.

Intangible assets, net, consisted of the following:

	December 31, 2017
	Weighted-	Gross
	Average Life	Carrying		Cumulative			Intangible
(In thousands)	Remaining	Value		Amortization			Assets, Net
Indefinite-lived intangible assets
Gaming licenses	Indefinite	$	960	$	—		$	960
Trade names	Indefinite		46,710		—			46,710
Other	Indefinite		185		—			185
			47,855		—			47,855
Amortizing intangible assets
Customer relationships	12.1 years		80,320		(12,524	)		67,796
Player relationships	4.2 years		34,150		(3,045	)		31,105
Gaming license	10.3 years		2,100		(648	)		1,452
Non-compete agreements	3.0 years		6,000		(2,395	)		3,605
Leasehold interest	65.7 years		3,110		(32	)		3,078
In-place lease value	3.3 years		1,670		(81	)		1,589
Other	8.2 years		1,769		(557	)		1,212
			129,119		(19,282	)		109,837
Balance, December 31, 2017		$	176,974	$	(19,282	)	$	157,692

	December 31, 2016
	Weighted-	Gross
	Average Life	Carrying		Cumulative			Intangible
(In thousands)	Remaining	Value		Amortization			Assets, Net
Indefinite-lived intangible assets
Gaming licenses	Indefinite	$	960	$	—		$	960
Trade names	Indefinite		12,200		—			12,200
Other	Indefinite		110		—			110
			13,270		—			13,270
Amortizing intangible assets
Customer relationships	13.2 years		78,100		(6,932	)		71,168
Player relationships	10.4 years		7,300		(910	)		6,390
Gaming license	11.4 years		2,100		(508	)		1,592
Non-compete agreements	4.0 years		6,000		(1,168	)		4,832
Other	9.5 years		1,648		(297	)		1,351
			95,148		(9,815	)		85,333
Balance, December 31, 2016		$	108,418	$	(9,815	)	$	98,603

The Rocky Gap gaming license is being amortized over its 15 year term.

Total amortization expense related to intangible assets was $9.5 million, $7.3 million and $2.3 million for 2017, 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:

(In thousands)		2018				2019				2020				2021				2022				Thereafter
Estimated amortization expense		$	17,562			$	17,562			$	15,923			$	7,023			$	6,624			$	45,143

- 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.

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