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Goodwill and Intangible, Net | 3 Months Ended
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Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible, Net | Note 4 – Goodwill and Intangible, Net The Company concluded that the impact of the current COVID-19 pandemic on operations and financial results is an indicator that impairment may exist related to its goodwill and other intangible assets. As a result, the Company performed an impairment assessment on goodwill and intangibles. As a result of these impairment assessments, the Company determined that there was an impairment of the goodwill in its Casinos segment and recognized a non-cash impairment of goodwill of $6.5 million. There was no impairment of the remaining goodwill or other intangible assets. The estimated fair value of goodwill was determined using discounted cash flow models which utilized Level 3 inputs as follows: discount rate of 12.0%; long-term revenue growth rate of 3.0%. The impairment charge is included in “Impairment of goodwill” on the consolidated statements of operations. The following table summarizes goodwill activity by reportable segment:
(In thousands) |  | Casinos |  |  | Distributed Gaming |  |  | Total Goodwill |
Balance, December 31, 2019 |  | $ | 86,466 |  |  | $ | 97,859 |  |  | $ | 184,325 |
Goodwill impairment |  |  | (6,461 | ) |  |  | — |  |  |  | (6,461 | )
Balance, March 31, 2020 |  | $ | 80,005 |  |  | $ | 97,859 |  |  | $ | 177,864 |
|  | March 31, 2020 |
|  | Weighted- |  | Gross |  |  |  |  |  |  |  |  |
|  | Average Life |  | Carrying |  |  | Cumulative |  |  | Intangible |
(In thousands) |  | Remaining |  | Value |  |  | Amortization |  |  | Assets, Net |
Indefinite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gaming licenses |  | Indefinite |  | $ | 53,690 |  |  | $ | — |  |  | $ | 53,690 |
Trade names |  | Indefinite |  |  | 960 |  |  |  | — |  |  |  | 960 |
Other |  | Indefinite |  |  | 185 |  |  |  | — |  |  |  | 185 |
|  |  |  |  | 54,835 |  |  |  | — |  |  |  | 54,835 |
Amortizing intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | 9.8 years |  |  | 81,104 |  |  |  | (25,608 | ) |  |  | 55,496 |
Player relationships |  | 1.7 years |  |  | 42,989 |  |  |  | (30,139 | ) |  |  | 12,850 |
Non-compete agreements |  | 2 years |  |  | 9,840 |  |  |  | (5,946 | ) |  |  | 3,894 |
Gaming license |  | 8.1 years |  |  | 2,100 |  |  |  | (963 | ) |  |  | 1,137 |
In-place lease value |  | 1.1 years |  |  | 1,171 |  |  |  | (717 | ) |  |  | 454 |
Leasehold interest |  | 1.4 years |  |  | 570 |  |  |  | (384 | ) |  |  | 186 |
Other |  | 6.1 years |  |  | 1,814 |  |  |  | (1,198 | ) |  |  | 616 |
|  |  |  |  | 139,588 |  |  |  | (64,955 | ) |  |  | 74,633 |
Balance, March 31, 2020 |  |  |  | $ | 194,423 |  |  | $ | (64,955 | ) |  | $ | 129,468 |
Intangible assets, net, consisted of the following:
|  | December 31, 2019 |
|  | Weighted- |  | Gross |  |  |  |  |  |  |  |  |
|  | Average Life |  | Carrying |  |  | Cumulative |  |  | Intangible |
(In thousands) |  | Remaining |  | Value |  |  | Amortization |  |  | Assets, Net |
Indefinite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gaming licenses |  | Indefinite |  | $ | 53,690 |  |  | $ | — |  |  | $ | 53,690 |
Trade names |  | Indefinite |  |  | 960 |  |  |  | — |  |  |  | 960 |
Liquor Licenses |  | Indefinite |  |  | 185 |  |  |  | — |  |  |  | 185 |
|  |  |  |  | 54,835 |  |  |  | — |  |  |  | 54,835 |
Amortizing intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | 10.0 years |  |  | 81,105 |  |  |  | (24,140 | ) |  |  | 56,965 |
Player relationships |  | 2.0 years |  |  | 42,990 |  |  |  | (26,649 | ) |  |  | 16,341 |
Non-compete agreements |  | 2.2 years |  |  | 9,840 |  |  |  | (5,467 | ) |  |  | 4,373 |
Gaming licenses |  | 8.3 years |  |  | 2,100 |  |  |  | (929 | ) |  |  | 1,171 |
In-place lease value |  | 1.3 years |  |  | 1,301 |  |  |  | (724 | ) |  |  | 577 |
Leasehold interest |  | 1.6 years |  |  | 570 |  |  |  | (345 | ) |  |  | 225 |
Other |  | 6.3 years |  |  | 1,814 |  |  |  | (1,150 | ) |  |  | 664 |
|  |  |  |  | 139,720 |  |  |  | (59,404 | ) |  |  | 80,316 |
Balance, December 31, 2019 |  |  |  | $ | 194,555 |  |  | $ | (59,404 | ) |  | $ | 135,151 |
The Rocky Gap gaming license is being amortized over its 15 year term. Total amortization expense related to intangible assets was $5.6 million and $5.7 million for the three months ended March 31, 2020 and 2019, respectively. Estimated future amortization expense related to intangible assets, is as follows:
(In thousands) |  | Remainder of 2020 |  |  | 2021 |  |  | 2022 |  |  | 2023 |  |  | 2024 |  |  | Thereafter |  |  |  |  | Total |
Estimated amortization expense |  | $ | 15,342 |  |  | $ | 8,054 |  |  | $ | 7,479 |  |  | $ | 7,367 |  |  | $ | 6,472 |  |  | $ | 29,919 |  |  |  |  | $ | 74,633 |

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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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