XML 24 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Other and Intangible Assets, Net
9 Months Ended
Sep. 30, 2018
Other And Intangible Assets Net Disclosure [Abstract]  
Other and Intangible Assets, Net

Note 6. Other and Intangible Assets, net

Other and intangible assets, net, include the following amounts (in thousands):

 

 

 

September 30,

 

 

December 31,

 

 

 

 

 

 

2018

 

 

2017

 

 

 

Useful Life

Goodwill

 

$

 

788,146

 

 

$

 

747,106

 

 

 

Indefinite

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gaming licenses

 

$

 

965,706

 

 

$

 

877,174

 

 

 

Indefinite

Trade names

 

 

 

120,829

 

 

 

 

108,250

 

 

 

Indefinite

Trade names

 

 

 

5,100

 

 

 

 

6,700

 

 

 

1 - 3.5 years

Loyalty programs

 

 

 

49,005

 

 

 

 

21,820

 

 

 

1 - 4 years

Subtotal

 

 

 

1,140,640

 

 

 

 

1,013,944

 

 

 

 

Accumulated amortization trade names

 

 

 

(5,100

)

 

 

 

(6,290

)

 

 

 

Accumulated amortization loyalty programs

 

 

 

(13,967

)

 

 

 

(10,838

)

 

 

 

Total gaming licenses and other intangible assets

 

$

 

1,121,573

 

 

$

 

996,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating real property

 

$

 

17,880

 

 

$

 

18,069

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unamortized debt issuance costs - Revolving

   Credit Facility

 

$

 

8,292

 

 

$

 

8,616

 

 

 

 

Restricted cash

 

 

 

9,906

 

 

 

 

9,886

 

 

 

 

Other

 

 

 

12,203

 

 

 

 

12,130

 

 

 

 

Total other assets, net

 

$

 

30,401

 

 

$

 

30,632

 

 

 

 

 

Goodwill represents the excess of the purchase prices of acquiring MTR Gaming, Isle and Elgin over the fair market value of the net assets acquired. In conjunction with the classification of Vicksburg’s operations as assets held for sale at March 31, 2018 (see Note 4) as a result of the announced sale to CDI, an impairment charge totaling $9.8 million was recorded due to the carrying value exceeding the estimated net sales proceeds. The impairment reduced the value of goodwill in the South segment.

The following table presents changes to goodwill for the nine months ended September 30, 2018 (in thousands):

 

 

 

Balance at

January 1, 2018

 

 

Acquisitions

 

 

Impairments

 

 

Finalization of Isle

Purchase Price

Accounting

 

 

Assets Held

for Sale

 

 

Balance at

September 30, 2018

 

 

(in thousands)

 

Goodwill by reportable

   segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

West

 

$

 

152,775

 

 

$

 

 

 

$

 

 

 

 

 

(14

)

 

 

 

 

 

$

 

152,761

 

Midwest

 

 

 

327,088

 

 

 

 

 

 

 

 

 

 

 

 

(4,343

)

 

 

 

 

 

 

 

322,745

 

South

 

 

 

200,417

 

 

 

 

 

 

 

 

(9,815

)

 

 

 

(1,752

)

 

 

 

 

 

 

 

188,850

 

East

 

 

 

66,826

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,122

)

 

 

 

63,704

 

Central

 

 

 

 

 

 

 

60,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60,086

 

Total Goodwill

 

$

 

747,106

 

 

$

 

60,086

 

 

$

 

(9,815

)

 

$

 

(6,109

)

 

$

 

(3,122

)

 

$

 

788,146

 

 

Gaming licenses represent intangible assets acquired from the purchase of a gaming entity located in a gaming jurisdiction where competition is limited, such as when only a limited number of gaming operators are allowed to operate in the jurisdiction. These gaming license rights are not subject to amortization as the Company has determined that they have an indefinite useful lives.

Amortization expense related to trade names and loyalty programs for the three months ended September 30, 2018 and 2017 totaled $2.4 million and $1.7 million, respectively, and $5.1 million and $3.3 million for the nine months ended September 30, 2018 and 2017, respectively, which is included in depreciation and amortization expense in the consolidated statements of operations. Such amortization expense is expected to be $3.0 million for the remainder of 2018 and $11.9 million, $8.8 million, $7.2 million and $4.2 million for the years ended December 31, 2019, 2020, 2021 and 2022, respectively.