XML 23 R11.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Goodwill And Intangible Assets | 9 Months Ended
--- | ---
Sep. 30, 2022
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 September 30, 2022 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 impairment analysis requires 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 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. 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, 2022 |  | $ | 7,402 |  | $ | 6,320 |  | $ | 13,722
Currency translation |  |  | (301) |  |  | (1,139) |  |  | (1,440)
Gross carrying value September 30, 2022 |  |  | 7,101 |  |  | 5,181 |  |  | 12,282
Accumulated impairment losses January 1, 2022 |  |  | (3,375) |  |  | — |  |  | (3,375)
Accumulated impairment losses September 30, 2022 |  |  | (3,375) |  |  | — |  |  | (3,375)
Net carrying value at January 1, 2022 |  | $ | 4,027 |  | $ | 6,320 |  | $ | 10,347
Net carrying value at September 30, 2022 |  | $ | 3,726 |  | $ | 5,181 |  | $ | 8,907
‎ Intangible Assets Intangible assets at September 30, 2022 and December 31, 2021 consisted of the following:
|  |  | September 30, |  |  | December 31,
Amounts in thousands |  | 2022 |  | 2021
Finite-lived |  |  |  |  |  |
Casino licenses |  | $ | 2,380 |  | $ | 2,768
Less: accumulated amortization |  |  | (1,455) |  |  | (1,749)
|  |  | 925 |  |  | 1,019
Trademarks |  |  | 2,368 |  |  | 2,368
Less: accumulated amortization |  |  | (671) |  |  | (494)
|  |  | 1,697 |  |  | 1,874
Players club lists |  |  | 20,373 |  |  | 20,373
Less: accumulated amortization |  |  | (8,246) |  |  | (6,063)
|  |  | 12,127 |  |  | 14,310
Total finite-lived intangible assets, net |  |  | 14,749 |  |  | 17,203
Indefinite-lived |  |  |  |  |  |
Casino licenses |  |  | 29,205 |  |  | 30,112
Trademarks |  |  | 1,343 |  |  | 1,615
Total indefinite-lived intangible assets |  |  | 30,548 |  |  | 31,727
Total intangible assets, net |  | $ | 45,297 |  | $ | 48,930
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 finite-lived are expensed over the renewal period to general and administrative expenses on the Company’s condensed consolidated statements of earnings. Changes in the carrying amount of the Mountaineer trademark are as follows:
Amounts in thousands |  |  | Balance at January 1, 2022 |  |  | Amortization |  |  | Balance at September 30, 2022
United States |  | $ | 1,874 |  | $ | (177) |  | $ | 1,697
As of September 30, 2022, estimated amortization expense of the Mountaineer trademark over the next five years was as follows:
Amounts in thousands |  |  |
2022 |  | $ | 60
2023 |  |  | 237
2024 |  |  | 237
2025 |  |  | 237
2026 |  |  | 237
Thereafter |  |  | 689
|  | $ | 1,697
The weighted-average amortization period of the Mountaineer trademark is 7.2 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. Changes in the carrying amount of the indefinite-lived trademarks are as follows:
Amounts in thousands |  |  | Balance at January 1, 2022 |  |  | Currency translation |  |  | Balance at September 30, 2022
Poland |  | $ | 1,507 |  | $ | (272) |  | $ | 1,235
Corporate and Other |  |  | 108 |  |  | — |  |  | 108
|  | $ | 1,615 |  | $ | (272) |  | $ | 1,343
Casino Licenses: Finite-Lived As of September 30, 2022, 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, 2022 |  |  | New Casino License |  |  | Amortization |  |  | Currency translation |  |  | Balance at ‎September 30, 2022
Poland |  | $ | 1,019 |  | $ | 390 |  | $ | (321) |  | $ | (163) |  | $ | 925
As of September 30, 2022, estimated amortization expense for the CPL casino licenses over the next five years was as follows:
Amounts in thousands |  |  |
2022 |  | $ | 100
2023 |  |  | 378
2024 |  |  | 192
2025 |  |  | 84
2026 |  |  | 62
Thereafter |  |  | 109
|  | $ | 925
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-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 those 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. Changes in the carrying amount of the licenses are as follows:
Amounts in thousands |  |  | Balance at ‎January 1, 2022 |  |  | Currency translation |  |  | Balance at September 30, 2022
United States |  | $ | 17,962 |  | $ | — |  | $ | 17,962
Canada |  |  | 12,150 |  |  | (907) |  |  | 11,243
|  | $ | 30,112 |  | $ | (907) |  | $ | 29,205
‎ 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, 2022 |  |  | Amortization |  |  | Balance at September 30, 2022
United States |  | $ | 14,310 |  | $ | (2,183) |  | $ | 12,127
As of September 30, 2022, estimated amortization expense for the player’s club lists over the next five years was as follows:
Amounts in thousands |  |  |
2022 |  | $ | 727
2023 |  |  | 2,910
2024 |  |  | 2,910
2025 |  |  | 2,910
2026 |  |  | 2,670
|  | $ | 12,127
The weighted-average amortization period for the player’s club lists is 4.2 years.

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 https://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