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Goodwill And Intangible Assets | 6 Months Ended
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Jun. 30, 2021
Goodwill And Intangible Assets [Abstract] |
Goodwill And Intangible Assets | 4.GOODWILL AND INTANGIBLE ASSETS Goodwill represents the future economic benefits of a business combination to the extent that the purchase price exceeds the fair value of the net identified tangible and intangible assets acquired and liabilities assumed. The Company determines the estimated fair value of the net identified tangible and intangible assets acquired and liabilities assumed after review and consideration of relevant information including discounted cash flows, quoted market prices, and estimates made by management. The Company tests goodwill for impairment as of October 1 each year, or more frequently as circumstances indicate it is necessary. Testing compares the estimated fair values of our reporting units to the reporting units’ carrying values. The reportable segments with goodwill balances as of June 30, 2021 included Canada and Poland. For the quantitative goodwill impairment test, the current fair value of each reporting unit with goodwill balances is estimated using a combination of (i) the income approach using the discounted cash flow method for projected revenue, EBITDA and working capital, (ii) the market approach observing the price at which comparable companies or shares of comparable companies are bought or sold, and (iii) fair value measurements using either quoted market price or an estimate of fair value using a present value technique. The cost approach, estimating the cost of reproduction or replacement of an asset, was considered but not used because it does not adequately capture an operating company’s intangible value. If the carrying value of a reporting unit exceeds its estimated fair value, the Company will recognize an impairment for the amount by which the carrying value exceeds the reporting unit’s fair value. The Company tests its indefinite-lived intangible assets as of October 1 each year, or more frequently as circumstances indicate it is necessary. The fair value is determined primarily using the multi-period excess earnings methodology and the relief from royalty method under the income approach. ‎ During the first quarter of 2020, as a result of the COVID-19 pandemic and associated closure of its casinos, the Company concluded these triggering events could indicate possible impairment of its goodwill and indefinite-lived intangible assets. The Company performed a quantitative and qualitative impairment analysis and determined that goodwill and casino licenses related to certain reporting units were impaired. During the second quarter of 2020, the Company paid an additional $1.2 million related to the working capital adjustment for the acquisition of Mountaineer, Cape Girardeau and Caruthersville (the “Acquired Casinos”) from Eldorado Resorts, Inc. on December 6, 2019 (the “Acquisition”) that resulted in additional goodwill. This amount was subsequently impaired in the same period. The Company recorded $1.2 million and $34.2 million to impairment –intangible and tangible assets on its condensed consolidated statements of loss for the three and six months ended June 30, 2020 related to the impairment of its goodwill and casino licenses for certain reporting units. The impairment analysis required management to make estimates about future operating results, valuation multiples and discount rates and assumptions based on historical data and consideration of future market conditions. Changes in the assumptions can materially affect these estimates. Given the uncertainty inherent in any projection, heightened by the possibility of additional effects of COVID-19, actual results may differ from the estimates and assumptions used, or conditions may change, which could result in additional impairment charges in the future. Such impairments could be material. Goodwill Changes in the carrying amount of goodwill related to the Canada and Poland segments are as follows:
Amounts in thousands |  | Canada |  | Poland |  | Total
Gross carrying value January 1, 2021 |  | $ | 7,385 |  | $ | 6,891 |  | $ | 14,276
Currency translation |  |  | 109 |  |  | (166) |  |  | (57)
Gross carrying value June 30, 2021 |  |  | 7,494 |  |  | 6,725 |  |  | 14,219
Accumulated impairment losses January 1, 2021 |  |  | (3,375) |  |  | — |  |  | (3,375)
Accumulated impairment losses June 30, 2021 |  |  | (3,375) |  |  | — |  |  | (3,375)
Net carrying value at January 1, 2021 |  | $ | 4,010 |  | $ | 6,891 |  | $ | 10,901
Net carrying value at June 30, 2021 |  | $ | 4,119 |  | $ | 6,725 |  | $ | 10,844
Intangible Assets Intangible assets at June 30, 2021 and December 31, 2020 consisted of the following:
|  |  | June 30, |  |  | December 31,
Amounts in thousands |  | 2021 |  | 2020
Finite-lived |  |  |  |  |  |
Casino licenses |  | $ | 2,946 |  | $ | 3,019
Less: accumulated amortization |  |  | (1,616) |  |  | (1,404)
|  |  | 1,330 |  |  | 1,615
Trademarks |  |  | 2,368 |  |  | 2,368
Less: accumulated amortization |  |  | (375) |  |  | (257)
|  |  | 1,993 |  |  | 2,111
Players club lists |  |  | 20,373 |  |  | 20,373
Less: accumulated amortization |  |  | (4,608) |  |  | (3,153)
|  |  | 15,765 |  |  | 17,220
Total finite-lived intangible assets, net |  |  | 19,088 |  |  | 20,946
Indefinite-lived |  |  |  |  |  |
Casino licenses |  |  | 30,391 |  |  | 30,061
Trademarks |  |  | 1,711 |  |  | 1,751
Total indefinite-lived intangible assets |  |  | 32,102 |  |  | 31,812
Total intangible assets, net |  | $ | 51,190 |  | $ | 52,758
‎ Trademarks The Company currently owns three trademarks, the Century Casinos trademark, the Mountaineer trademark and the Casinos Poland trademark, which are reported as intangible assets on the Company’s condensed consolidated balance sheets. Trademarks: Finite-Lived The Company has determined that the Mountaineer trademark, reported in the United States segment, has a useful life of ten years after considering, among other things, the expected use of the asset, the expected useful life of other related assets or asset groups, any legal, regulatory, or contractual provisions that may limit the useful life, the effects of obsolescence, demand and other economic factors, and the maintenance expenditures required to promote and support the trade name. As such, the trademark will be amortized over its useful life. Costs incurred to renew trademarks that are indefinite-lived are expensed over the renewal period to general and administrative expenses on the Company’s condensed consolidated statements of earnings (loss). Changes in the carrying amount of the Mountaineer trademark are as follows:
Amounts in thousands |  |  | Balance at ‎January 1, 2021 |  |  | Amortization |  |  | Balance at June 30, 2021
United States |  | $ | 2,111 |  | $ | (118) |  | $ | 1,993
As of June 30, 2021, estimated amortization expense of the Mountaineer trademark over the next five years was as follows:
Amounts in thousands |  |  |
2021 |  | $ | 118
2022 |  |  | 237
2023 |  |  | 237
2024 |  |  | 237
2025 |  |  | 237
Thereafter |  |  | 927
|  | $ | 1,993
The weighted-average amortization period of the Mountaineer trademark is 8.4 years. Trademarks: Indefinite-Lived The Company has determined that the Casinos Poland trademark, reported in the Poland segment, and the Century Casinos trademark, reported in the Corporate and Other segment, have indefinite useful lives and therefore the Company does not amortize these trademarks. Costs incurred to renew trademarks that are indefinite-lived are expensed over the renewal period as general and administrative expenses on the Company’s condensed consolidated statements of earnings (loss). Changes in the carrying amount of the indefinite-lived trademarks are as follows:
Amounts in thousands |  |  | Balance at January 1, 2021 |  |  | Currency translation |  |  | Balance at ‎June 30, 2021
Poland |  | $ | 1,643 |  | $ | (40) |  | $ | 1,603
Corporate and Other |  |  | 108 |  |  | — |  |  | 108
|  | $ | 1,751 |  | $ | (40) |  | $ | 1,711
Casino Licenses: Finite-Lived As of June 30, 2021, Casinos Poland had eight casino licenses, each with an original term of six years, which are reported as finite-lived intangible assets and are amortized over their respective useful lives. Changes in the carrying amount of the Casinos Poland licenses are as follows:
Amounts in thousands |  |  | Balance at January 1, 2021 |  |  | Amortization |  |  | Currency translation |  |  | Balance at June 30, 2021
Poland |  | $ | 1,615 |  | $ | (249) |  | $ | (36) |  | $ | 1,330
‎ As of June 30, 2021, estimated amortization expense for the CPL casino licenses over the next five years was as follows:
Amounts in thousands |  |  |
2021 |  | $ | 246
2022 |  |  | 478
2023 |  |  | 410
2024 |  |  | 168
2025 |  |  | 28
|  | $ | 1,330
These estimates do not reflect the impact of future foreign exchange rate changes or the continuation of the licenses following their expiration. The weighted average period before the next license expiration is 2.6 years. In Poland, gaming licenses are not renewable. Once a gaming license has expired, any gaming company can apply for the license. Casino Licenses: Indefinite-Lived The Company has determined that the casino licenses held in the United States segment from the Missouri Gaming Commission and the West Virginia Lottery Commission and held in the Canada segment from the Alberta Gaming, Liquor and Cannabis Commission and Horse Racing Alberta are indefinite-lived. Costs incurred to renew licenses that are indefinite-lived are expensed over the renewal period to general and administrative expenses on the Company’s condensed consolidated statements of earnings (loss). Changes in the carrying amount of the licenses are as follows:
Amounts in thousands |  |  | Balance at January 1, 2021 |  |  | Currency translation |  |  | Balance at June 30, 2021
United States |  | $ | 17,962 |  | $ | — |  | $ | 17,962
Canada |  |  | 12,099 |  |  | 330 |  |  | 12,429
|  | $ | 30,061 |  | $ | 330 |  | $ | 30,391
Player’s Club Lists The Company has determined that the player’s club lists, reported in the United States segment, have a useful life of seven years based on estimated revenue attrition among the player’s club members over each property’s historical operations as estimated by management. As such, the player’s club lists will be amortized over their useful lives. Changes in the carrying amount of the player’s club lists are as follows:
Amounts in thousands |  |  | Balance at ‎January 1, 2021 |  |  | Amortization |  |  | Balance at June 30, 2021
United States |  | $ | 17,220 |  | $ | (1,455) |  | $ | 15,765
As of June 30, 2021, estimated amortization expense for the player’s club lists over the next five years was as follows:
Amounts in thousands |  |  |
2021 |  | $ | 1,455
2022 |  |  | 2,910
2023 |  |  | 2,910
2024 |  |  | 2,910
2025 |  |  | 2,910
Thereafter |  |  | 2,670
|  | $ | 15,765
The weighted-average amortization period for the player’s club lists is 5.4 years. ‎

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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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