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Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The Company tests goodwill and indefinite-lived intangible assets for impairment annually during the fourth quarter of each year, and whenever events or 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. Refer to “Note 2 — Summary of Significant Accounting Policies” for further information on the Company’s accounting policies related to its goodwill and intangible assets.
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 an impairment of its Casinos segment goodwill of $6.5 million.
The mandatory closure of all the Company’s properties for a majority of the second quarter of 2020 resulted in deterioration of performance of the Company’s resort 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. The revised cash flow projections also reflected the Company’s decision to keep operations of its Colorado Belle property suspended. Interim qualitative and quantitative assessments of Golden’s goodwill and intangible assets for potential impairment conducted during the second quarter of 2020 utilizing the updated projections resulted in recognition of an additional impairment of the goodwill of the Company’s Casinos segment in the amount of $18.8 million as of 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 an impairment charge of $2.6 million.
The Company conducted its annual quantitative test of goodwill and indefinite-lived intangible assets for potential impairment during the fourth quarter of 2020 utilizing the cash flow projections that were further revised in response to the ongoing impact of the COVID-19 pandemic on the Company’s operations, as discussed in “Note 1 — Nature of Business.” The Company’s annual test resulted in recognition of impairment charges to its goodwill and certain indefinite-lived trade names within the Casinos segment in the amount of $1.8 million and $4.3 million, respectively.
The estimated fair value of goodwill during the interim periods was determined using an income valuation approach utilizing discounted cash flow models. The annual quantitative test was conducted using a combination of an income valuation approach utilizing discounted cash flow models and a market valuation approach. The market valuation approach considers comparable market data based on multiples of revenue or earnings before interest, taxes, depreciation and amortization. The income valuation approach utilized the following Level 3 inputs: discount rate of 12.0% - 13.5%; long-term revenue growth rate of 2.0% - 3.0%.
The estimated fair value of indefinite-lived intangible assets for the interim and annual tests was determined using the income approach by applying the relief from royalty methodology using Level 3 inputs with a royalty rate of 0.75% to 2.0%, a discount rate of 12.0% to 13.5% and long-term revenue growth rate of 2.0% to 3.0%.
The following table summarizes goodwill activity by reportable segment:
(In thousands)CasinosDistributed GamingTotal Goodwill
Balance, January 1, 2019$61,175 $98,104 $159,279 
Goodwill acquired during the year (1)
26,191 — 26,191 
Balance, December 31, 2019$87,366 $98,104 $185,470 
Goodwill impairment(27,074)— (27,074)
Balance, December 31, 2020$60,292 $98,104 $158,396 
(1) Relates to the Laughlin Acquisition discussed in “Note 3 — Acquisitions.”
Intangible assets, net, consisted of the following:
December 31, 2020
(In thousands)Useful Life (Years)Gross Carrying
Value		Cumulative
Amortization		ImpairmentIntangible Assets, Net
Indefinite-lived intangible assets
Trade namesIndefinite$53,690 $— $(6,890)$46,800 
53,690 — (6,890)46,800 
Amortizing intangible assets
Customer relationships
4-16
81,105 (30,012)— 51,093 
Player relationships
2-14
42,990 (39,116)— 3,874 
Non-compete agreements
2-5
9,840 (7,385)— 2,455 
Gaming license (1)
152,100 (1,070)— 1,030 
In-place lease value41,170 (918)— 252 
Leasehold interest4570 (504)— 66 
Other
4-25
1,814 (1,275)— 539 
139,589 (80,280)— 59,309 
Balance, December 31, 2020$193,279 $(80,280)$(6,890)$106,109 
(1) Relates to Rocky Gap.
December 31, 2019
(In thousands)Useful Life (Years)Gross Carrying
Value		Cumulative
Amortization		Intangible Assets, Net
Indefinite-lived intangible assets
Trade namesIndefinite$53,690 $— $53,690 
53,690 — 53,690 
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)
152,100 (929)1,171 
In-place lease value41,301 (724)577 
Leasehold interest4570 (345)225 
Other
4-25
1,814 (1,150)664 
139,720 (59,404)80,316 
Balance, December 31, 2019$193,410 $(59,404)$134,006 
(1) Relates to Rocky Gap.
Total amortization expense related to intangible assets was $21.0 million, $22.7 million and $17.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. Estimated future amortization expense related to intangible assets is as follows:
(In thousands)20212022202320242025Thereafter
Total (1)
Estimated amortization expense$8,051 $7,496 $7,367 $6,472 $6,132 $23,791 $59,309 
(1) The Company did not have intangible assets that were not placed in service as of December 31, 2020.
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.