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Goodwill and Intangible Assets, Net | 6 Months Ended
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Jun. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets, Net | Note 4 – Goodwill and Intangible Assets, Net The Company tests goodwill and indefinite-lived intangible assets for impairment annually in the last quarter of the year, unless events or changes in circumstances indicate that it is more likely than not that the carrying value of a reporting unit exceeds its fair value. Finite-lived intangible assets are evaluated for potential impairment whenever there is an indicator that the carrying value of an asset group may not be recoverable. During the first quarter of 2020, the Company concluded that the COVID-19 pandemic had an adverse impact on its operations and financial results, particularly within the Company’s Casinos segment due to the mandatory property closures, which management considered an indicator of impairment, and necessitated a performance of interim qualitative and quantitative impairment tests. The Company’s interim assessment resulted in recognition of a non-cash impairment of its Casinos segment goodwill of $6.5 million. Mandatory shut-down of the Company’s properties for a majority of the second quarter of 2020 resulted in deterioration of performance of the Company’s casino properties in particular, which required the Company to revise its cash flow projections to reflect the current economic environment, including the uncertainty surrounding the nature, timing, and extent of elimination or change of the restrictions on the Company’s operations. As a result of the impact of the COVID-19 pandemic, the operations of the Colorado Belle remained suspended as of June 30, 2020. The Company conducted an interim qualitative and quantitative assessment of its goodwill and intangible assets for potential impairment, which resulted in recognition of an additional non-cash impairment of the Company’s Casinos segment in the amount of $18.8 million for the three months ended June 30, 2020. The assessment also indicated that the carrying value of an indefinite-lived trade name for certain of the Company’s properties within the Casinos segment exceeded its fair value and resulted in recognition of a non-cash impairment charge of $2.6 million. The estimated fair value of goodwill and indefinite-lived intangible assets for the first and second quarter 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 2.0% to 3.0%. There was no impairment of the remaining goodwill or other intangible assets for the three and six months ended June 30, 2020. 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 |  |  | (25,272 | ) |  |  | — |  |  |  | (25,272 | )
Balance, June 30, 2020 |  | $ | 61,194 |  |  | $ | 97,859 |  |  | $ | 159,053 |
Intangible assets, net, consisted of the following:
|  | June 30, 2020 |
|  |  |  | Gross |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Useful Life |  | Carrying |  |  | Cumulative |  |  |  |  |  |  | Intangible |
(In thousands) |  | (Years) |  | Value |  |  | Amortization |  |  | Impairment |  |  | Assets, Net |
Indefinite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  | Indefinite |  | $ | 53,690 |  |  | $ | — |  |  | $ | (2,600 | ) |  | $ | 51,090 |
Gaming licenses |  | Indefinite |  |  | 960 |  |  |  | — |  |  |  | — |  |  |  | 960 |
Other |  | Indefinite |  |  | 185 |  |  |  | — |  |  |  | — |  |  |  | 185 |
|  |  |  |  | 54,835 |  |  |  | — |  |  |  | (2,600 | ) |  |  | 52,235 |
Amortizing intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | 4-16 |  |  | 81,104 |  |  |  | (27,076 | ) |  |  | — |  |  |  | 54,028 |
Player relationships |  | 2-14 |  |  | 42,989 |  |  |  | (33,628 | ) |  |  | — |  |  |  | 9,361 |
Non-compete agreements |  | 2-5 |  |  | 9,840 |  |  |  | (6,426 | ) |  |  | — |  |  |  | 3,414 |
Gaming license (1) |  | 15 |  |  | 2,100 |  |  |  | (999 | ) |  |  | — |  |  |  | 1,101 |
In-place lease value |  | 4 |  |  | 1,171 |  |  |  | (784 | ) |  |  | — |  |  |  | 387 |
Leasehold interest |  | 4 |  |  | 570 |  |  |  | (424 | ) |  |  | — |  |  |  | 146 |
Other |  | 4-25 |  |  | 1,769 |  |  |  | (1,181 | ) |  |  | — |  |  |  | 588 |
|  |  |  |  | 139,543 |  |  |  | (70,518 | ) |  |  | — |  |  |  | 69,025 |
Balance, June 30, 2020 |  |  |  | $ | 194,378 |  |  | $ | (70,518 | ) |  | $ | (2,600 | ) |  | $ | 121,260 |
| (1) | Relates to Rocky Gap.
|  | December 31, 2019 |
|  |  |  | Gross |  |  |  |  |  |  |  |  |
|  | Useful Life |  | Carrying |  |  | Cumulative |  |  | Intangible |
(In thousands) |  | (Years) |  | Value |  |  | Amortization |  |  | Assets, Net |
Indefinite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  | Indefinite |  | $ | 53,690 |  |  | $ | — |  |  | $ | 53,690 |
Gaming licenses |  | Indefinite |  |  | 960 |  |  |  | — |  |  |  | 960 |
Liquor Licenses |  | Indefinite |  |  | 185 |  |  |  | — |  |  |  | 185 |
|  |  |  |  | 54,835 |  |  |  | — |  |  |  | 54,835 |
Amortizing intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | 4-16 |  |  | 81,105 |  |  |  | (24,140 | ) |  |  | 56,965 |
Player relationships |  | 2-14 |  |  | 42,990 |  |  |  | (26,649 | ) |  |  | 16,341 |
Non-compete agreements |  | 2-5 |  |  | 9,840 |  |  |  | (5,467 | ) |  |  | 4,373 |
Gaming license (1) |  | 15 |  |  | 2,100 |  |  |  | (929 | ) |  |  | 1,171 |
In-place lease value |  | 4 |  |  | 1,301 |  |  |  | (724 | ) |  |  | 577 |
Leasehold interest |  | 4 |  |  | 570 |  |  |  | (345 | ) |  |  | 225 |
Other |  | 4-25 |  |  | 1,814 |  |  |  | (1,150 | ) |  |  | 664 |
|  |  |  |  | 139,720 |  |  |  | (59,404 | ) |  |  | 80,316 |
Balance, December 31, 2019 |  |  |  | $ | 194,555 |  |  | $ | (59,404 | ) |  | $ | 135,151 |
| (1) | Relates to Rocky Gap.
Total amortization expense related to intangible assets was $5.6 million and $11.3 million for the three and six months ended June 30, 2020, respectively, and $5.7 million and $11.3 million for the three and six months ended June 30, 2019, respectively. To the extent the Company becomes aware of new facts and circumstances arising from the COVID-19 pandemic that impact its operations, the Company will revise its cash flow projections accordingly, as its estimates of future cash flows are highly dependent upon certain assumptions, including, but not limited to, the nature, timing, and extent of elimination or change of the restrictions on the Company’s operations and the extent and timing of the economic recovery globally, nationally, and specifically within the gaming industry. If such assumptions are not accurate, the Company may be required to record impairment charges in future periods, whether in connection with its regular review procedures, or earlier, if an indicator of an impairment is present prior to such evaluation.

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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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