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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2021
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. 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 then-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 in each quarter of 2020 and performed its annual quantitative test of goodwill and indefinite-lived intangible assets for potential impairment during the fourth quarter of 2020. The analyses performed by the Company throughout 2020 resulted in non-cash impairment charges recorded to the Company’s Nevada Casino Resorts goodwill and indefinite-lived trade names in the amount of $27.1 million and $6.9 million, respectively. 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 year ended December 31, 2021 and the Company concluded that there was no impairment of the Company’s goodwill and intangible assets as of December 31, 2021. The estimated fair value of goodwill during the interim periods in 2020 and for the annual quantitative test in 2021 was determined using an income valuation approach utilizing discounted cash flow models. The annual quantitative test in 2020 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 conducted in 2020 utilized the following Level 3 inputs: discount rate of 12.0% - 13.5%; long-term revenue growth rate of 2.0% - 3.0%. The income valuation approach conducted in 2021 utilized a discount rate of 13% and long-term revenue growth rate of 2.5%. The estimated fair value of indefinite-lived intangible assets in both 2020 and 2021 was determined using the income approach by applying the relief from royalty methodology using Level 3 inputs. For 2020, the Company applied 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%. For 2021, the Company utilized a royalty rate of 1.0% to 2.0%, a discount rate of 13.0% and long-term revenue growth rate of 2.5%. The following table summarizes goodwill activity by reportable segment:
(In thousands) | Nevada Casino Resorts |  | Nevada Locals Casinos |  | Maryland Casino Resort |  | Distributed Gaming |  | Total Goodwill
Balance, January 1, 2020 | $ | 49,179 |  |  | $ | 38,187 |  |  | $ | — |  |  | $ | 98,104 |  |  | $ | 185,470 |
Goodwill impairment | (27,074) |  |  | — |  |  | — |  |  | — |  |  | (27,074) |
Balance, December 31, 2020 and 2021 | $ | 22,105 |  |  | $ | 38,187 |  |  | $ | — |  |  | $ | 98,104 |  |  | $ | 158,396 |
Intangible assets, net, consisted of the following:
|  | At December 31, 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 |  |  | (35,879) |  |  | — |  |  | 45,226 |
Player relationships |  | 2-14 |  | 42,990 |  |  | (39,812) |  |  | — |  |  | 3,178 |
Non-compete agreements |  | 2-5 |  | 9,840 |  |  | (8,349) |  |  | — |  |  | 1,491 |
Gaming license (1) |  | 15 |  | 2,100 |  |  | (1,210) |  |  | — |  |  | 890 |
In-place lease value |  | 4 |  | 1,170 |  |  | (1,155) |  |  | — |  |  | 15 |
Leasehold interest |  | 4 |  | 570 |  |  | (570) |  |  | — |  |  | — |
Other |  | 4-25 |  | 1,814 |  |  | (1,356) |  |  | — |  |  | 458 |
|  |  |  | 139,589 |  |  | (88,331) |  |  | — |  |  | 51,258 |
Balance, December 31, 2021 |  |  |  | $ | 193,279 |  |  | $ | (88,331) |  |  | $ | (6,890) |  |  | $ | 98,058 |
(1) Relates to Rocky Gap.
|  | At 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 $8.1 million, $21.0 million and $22.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. Estimated future amortization expense related to intangible assets is as follows:
(In thousands) |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 |  | Thereafter |  | Total (1)
Estimated amortization expense |  | $ | 7,496 |  |  | $ | 7,367 |  |  | $ | 6,472 |  |  | $ | 6,132 |  |  | $ | 6,027 |  |  | $ | 17,764 |  |  | $ | 51,258 |
(1) The Company did not have intangible assets that were not placed in service as of December 31, 2021. 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.

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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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