XML 19 R9.htm IDEA: XBRL DOCUMENT
v3.21.2

Goodwill and Intangible Assets | 6 Months Ended
--- | ---
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company’s goodwill balance as of June 30, 2021 and December 31, 2020 was $158.4 million, of which $60.3 million related to the Casinos reportable segment and $98.1 million related to the Distributed Gaming reportable segment. Intangible assets, net, consisted of the following:
| June 30, 2021
(In thousands) | Useful Life (Years) |  | Gross Carrying Value |  | Cumulative Amortization |  | Cumulative Impairment |  | Intangible Assets, Net
Indefinite-lived intangible assets |  |  |  |  |  |  |  |  |
Trade names | Indefinite |  | $ | 53,690 |  |  | $ | — |  |  | $ | (6,890) |  |  | $ | 46,800 |
|  |  | 53,690 |  |  | — |  |  | (6,890) |  |  | 46,800 |
Amortizing intangible assets |  |  |  |  |  |  |  |  |
Customer relationships | 4-16 |  | 81,105 |  |  | (32,949) |  |  | — |  |  | 48,156 |
Player relationships | 2-14 |  | 42,990 |  |  | (39,491) |  |  | — |  |  | 3,499 |
Non-compete agreements | 2-5 |  | 9,840 |  |  | (7,959) |  |  | — |  |  | 1,881 |
Gaming license (1) | 15 |  | 2,100 |  |  | (1,139) |  |  | — |  |  | 961 |
In-place lease value | 4 |  | 1,170 |  |  | (1,051) |  |  | — |  |  | 119 |
Leasehold interest | 4 |  | 570 |  |  | (570) |  |  | — |  |  | — |
Other | 4-25 |  | 1,814 |  |  | (1,322) |  |  | — |  |  | 492 |
|  |  | 139,589 |  |  | (84,481) |  |  | — |  |  | 55,108 |
Balance, June 30, 2021 |  |  | $ | 193,279 |  |  | $ | (84,481) |  |  | $ | (6,890) |  |  | $ | 101,908 |
(1)Relates to Rocky Gap.
| December 31, 2020
(In thousands) | Useful Life (Years) |  | Gross Carrying Value |  | Cumulative Amortization |  | Cumulative Impairment |  | Intangible Assets, Net
Indefinite-lived intangible assets |  |  |  |  |  |  |  |  |
Trade names | Indefinite |  | $ | 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) | 15 |  | 2,100 |  |  | (1,070) |  |  | — |  |  | 1,030 |
In-place lease value | 4 |  | 1,170 |  |  | (918) |  |  | — |  |  | 252 |
Leasehold interest | 4 |  | 570 |  |  | (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. Total amortization expense related to intangible assets was $2.0 million and $4.2 million for the three and six months ended June 30, 2021, respectively, and $5.6 million and $11.3 million for the three and six months ended June 30, 2020, respectively. 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. While the impact of the COVID-19 pandemic on the Company’s operations is ongoing, management determined that there were no new indicators of impairment for the three and six months ended June 30, 2021 and the Company concluded that there was no impairment of the Company’s goodwill and intangible assets as of June 30, 2021. Mandatory shut-down of the Company’s properties commencing in March 2020 that lasted for a majority of the second quarter of 2020 resulted in a deterioration in the 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 of or change to the restrictions on the Company’s operations. As a result, the Company conducted an interim qualitative and quantitative assessment of its goodwill and intangible assets for potential impairment at March 31, 2020 and June 30, 2020 and recorded a non-cash impairment of the Company’s Casinos segment goodwill in the amount of $6.5 million and $18.8 million for the three and six months ended June 30, 2020, respectively. 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 recorded at June 30, 2020. The estimated fair value of goodwill and indefinite-lived intangible assets for the six months ended June 30, 2020 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%. The impairment charge was included in “Impairment of goodwill and intangible assets” on the consolidated statements of operations. To the extent the Company becomes aware of new facts and circumstances arising from the COVID-19 pandemic or other matters that would result in a triggering event, 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.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration