XML 52 R15.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Note 8 - Write-downs and Other Charges
12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Asset Impairment Charges [Text Block]
NOTE
8.
WRITE-DOWNS AND OTHER CHARGES
 
The Consolidated Statements of Operations and Comprehensive Loss include various transactions, such as loss on disposal or impairment of long-lived assets and fair value adjustments to contingent consideration that have been classified as write-downs and other charges. During the year ended
December 31, 2019,
the Company recognized
$6.9
 million in write-downs and other charges. The activity was primarily driven by losses from the impairment to goodwill in the RMG Interactive reporting unit of
$3.5
million and impairments of intangible assets in the RMG Interactive reporting unit of
$1.3
 million, which are described in Note
4.
We also recorded losses from the disposal of assets of
$1.1
 million, impairment of intangible assets related to game titles of
$0.5
 million (the Company used level
3
of observable inputs in conducting the impairment tests), and a fair value adjustment to contingent consideration of
$0.5
 million (the Company used level
3
fair value measurements based on projected cash flows).
 
During the year ended
December 31, 2018,
the Company recognized 
$8.8
million in write-downs and other charges driven by losses from the disposal of assets of 
$2.0
million, the impairment of goodwill related to Interactive Social reporting unit of
$4.8
million (the Company used level
3
fair value measurements based on projected cash flows), the full impairment of intangible assets related to game titles and assets associated with terminated development agreements of
$1.3
million (the Company used level
3
of observable inputs in conducting the impairment tests), and a fair value adjustment to contingent consideration of 
$0.7
million (the Company used level
3
fair value measurements based on projected cash flows).
 
During the year ended
December 31, 2017,
the Company recognized
$4.5
million in write-downs and other charges driven by losses from the disposal of assets of
$3.2
million, write-offs related to prepaid royalties of
$0.7
million, the full impairment of certain intangible assets of
$0.6
million (level
3
fair value measurement based on projected cash flows for the specific same titles), losses from the disposal of intangible assets of
$0.5
million, offset by a fair value adjustment to an acquisition contingent receivable of
$0.5
 million (level
3
fair value measurements based on projected cash flows). The contingency was resolved in the quarter ending
March 31, 2017.
 
Due to the changing nature of our write-downs and other charges, we describe the composition of the balances as opposed to providing a year over year comparison.