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Goodwill And Intangible Assets | 12 Months Ended
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Dec. 31, 2021
Goodwill And Intangible Assets [Abstract] |
Goodwill And Intangible Assets | 5. 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 the reporting units to the reporting units’ carrying values. The reportable segments with goodwill balances as of December 31, 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 MPEEM 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 2019 Acquisition that resulted in additional goodwill. This amount was subsequently impaired in the same period. The Company recorded $34.1 million to impairment – intangible and tangible assets on its consolidated statement of earnings (loss) for the year ended December 31, 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. The Company impaired the casino license at Century Casino Bath in December 2019 based on the losses incurred by the casino since operations began and future forecasts of continued losses due to the regulatory environment for casinos in England. As a result, the Company impaired $1.2 million related to the CCB license and recorded it to impairment – intangible and tangible assets in the Corporate and Other segment on the Company’s consolidated statement of earnings (loss) for the year ended December 31, 2019. GoodwillChanges in the carrying value of goodwill related to the United States, Canada and Poland segments are as follows: Amounts in thousands United States Canada Poland TotalGross carrying value January 1, 2020 $18,629 $7,550 $6,757 $32,936Acquisitions 1,157 — — 1,157Currency translation — (165) 134 (31)Gross carrying value December 31, 2020 19,786 7,385 6,891 34,062Currency translation — 17 (571) (554)Gross carrying value December 31, 2021 19,786 7,402 6,320 33,508 Accumulated impairment losses January 1, 2020 — — — —Impairments (19,786) (3,375) — (23,161)Accumulated impairment losses December 31, 2020 (19,786) (3,375) — (23,161)Impairments — — — —Accumulated impairment losses December 31, 2021 (19,786) (3,375) — (23,161) Net carrying value at December 31, 2020 $— $4,010 $6,891 $10,901Net carrying value at December 31, 2021 $— $4,027 $6,320 $10,347 Intangible AssetsIntangible assets at December 31, 2021 and 2020 consisted of the following: December 31, December 31, Amounts in thousands 2021 2020Finite-lived Casino licenses $ 2,768 $ 3,019Less: accumulated amortization (1,749) (1,404) 1,019 1,615Trademarks 2,368 2,368Less: accumulated amortization (494) (257) 1,874 2,111Players club lists 20,373 20,373Less: accumulated amortization (6,063) (3,153) 14,310 17,220Total finite-lived intangible assets, net 17,203 20,946Indefinite-lived Casino licenses 30,112 30,061Trademarks 1,615 1,751Total indefinite-lived intangible assets 31,727 31,812Total intangible assets, net $ 48,930 $ 52,758 TrademarksThe 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 consolidated balance sheets. Trademarks: Finite-LivedThe 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. The trademark will be amortized over its useful life. Costs incurred to renew trademarks that are finite-lived are expensed over the renewal period to general and administrative expenses on the Company’s consolidated statement 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 ‎December 31, 2021United States $2,111 $(237) $1,874 Amounts in thousands Balance at January 1, 2020 Amortization Balance at December 31, 2020United States $2,349 $(238) $2,111 As of December 31, 2021, estimated amortization expense for the Mountaineer trademark over the next five years was as follows: Amounts in thousands 2022 $ 2372023 2372024 2372025 2372026 237Thereafter 689 $ 1,874 The weighted-average amortization period of the Mountaineer trademark is 7.9 years. Trademarks: Indefinite-LivedThe Company has determined 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 consolidated statement 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 ‎December 31, 2021Poland $1,643 $(136) $1,507Corporate and Other 108 — 108 $1,751 $(136) $1,615 Amounts in thousands Balance at January 1, 2020 Currency translation Balance at ‎December 31, 2020Poland $1,611 $32 $1,643Corporate and Other 108 — 108 $1,719 $32 $1,751 Casino Licenses: Finite-LivedAs of December 31, 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 ‎December 31, 2021Poland $1,615 $(485) $(111) $1,019 Amounts in thousands Balance at January 1, 2020 Amortization Currency translation Balance at December 31, 2020Poland $2,078 $(481) $18 $1,615 As of December 31, 2021, estimated amortization expense for the Casinos Poland casino licenses over the next five years was as follows: Amounts in thousands 2022 $4492023 3852024 1582025 27 $1,019 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 2.1 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-LivedThe 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 AGLC and the HRA 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 consolidated statement of earnings (loss). Changes in the carrying amount of the licenses are as follows: Amounts in thousands Balance at ‎January 1, 2021 Impairment Currency translation Balance at ‎December 31, 2021United States $17,962 $— $— $17,962Canada 12,099 — 51 12,150 $30,061 $— $51 $30,112 Amounts in thousands Balance at January 1, 2020 Impairment Currency translation Balance at December 31, 2020United States $28,922 $(10,960) $— $17,962Canada 11,860 — 239 12,099 $40,782 $(10,960) $239 $30,061 Player’s Club ListsThe 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 as estimated by management over each property’s historical operations as estimated by management. 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 ‎December 31, 2021United States $17,220 $(2,910) $14,310 Amounts in thousands Balance at January 1, 2020 Amortization Balance at December 31, 2020United States $20,133 $(2,913) $17,220 As of December 31, 2021, estimated amortization expense for the player’s club lists over the next five years was as follows: Amounts in thousands 2022 $ 2,9102023 2,9102024 2,9102025 2,9102026 2,670 $14,310 The weighted-average amortization period for the player’s club lists is 4.9 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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