XML 19 R9.htm IDEA: XBRL DOCUMENT

Note 3 - Goodwill and Intangibles

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 3. GOODWILL AND INTANGIBLES

Changes in the carrying amount of goodwill are as follows (in thousands):

	*Gross Carrying Amount*
	*EGM*		*Table Products*		Interactive⁽¹⁾		*Total*
December 31, 2024	$	277,453	$	9,051	$	-	$	286,504
Foreign currency adjustments		297		-		-		297
Balance at March 31, 2025	$	277,750	$	9,051	$	-	$	286,801

⁽¹⁾ As of March 31, 2025, accumulated goodwill impairment charges for the Interactive segment taken prior to December 31, 2024 were $8.4 million.

Intangible assets consist of the following (in thousands):

			*March 31, 2025*							*December 31, 2024*
	*Useful Life*		*Gross*		*Accumulated*			*Net Carrying*		*Gross*		*Accumulated*			*Net Carrying*
	*(years)*		*Value*		*Amortization*			*Value*		*Value*		*Amortization*			*Value*
Indefinite-lived trade names		Indefinite	$	12,126	$	-		$	12,126	$	12,126		-		$	12,126
Trade and brand names		3 - 10		14,060		(13,921	)		139		14,060		(13,906	)		154
Customer relationships		5 - 12		219,235		(194,101	)		25,134		218,959		(191,528	)		27,431
Contract rights under development and placement fees		1 - 7		40,149		(34,946	)		5,203		40,053		(33,472	)		6,581
Gaming software and technology platforms		3 - 10		258,212		(194,666	)		63,546		251,703		(187,501	)		64,202
Intellectual property		3 - 10		21,856		(17,892	)		3,964		21,856		(17,517	)		4,339
Total intangible assets			$	565,638	$	(455,526	)	$	110,112	$	558,757	$	(443,924	)	$	114,833

Intangible assets are amortized over their respective estimated useful lives ranging from one to twelve years. Amortization expense related to intangible assets was $9.8 million and $9.4 million for the three months ended March 31, 2025 and 2024, respectively.

The Company enters into development agreements and placement fee agreements with certain customers to secure floor space under lease agreements for its gaming machines. Amounts paid in connection with the development agreements are repaid to the Company in accordance with the terms of the agreement, whereas placements fees are not reimbursed. Amounts paid against the placement fee agreements with payment terms greater than 90 days are disclosed in the financing activities section of the condensed consolidated statement of cash flows. Amounts paid for the placement fee agreements with the agreement terms less than 90 days, are disclosed in the investing activities section of the condensed consolidated statement of cash flows.

For development agreements in the form of a loan, interest income is recognized on the repayment of the notes based on the stated rate or, if not stated explicitly in the development agreement, on an imputed interest rate. If the stated interest rate is deemed to be other than a market rate or zero, a discount is recorded on the note receivable as a result of the difference between the stated and market rate and a corresponding intangible asset is recorded. The intangible asset is recognized in the condensed consolidated financial statements as a contract right under development agreement and amortized as a reduction in revenue over the term of the agreement. Placement fees can be in the form of cash paid upfront or free lease periods and are accreted over the life of the contract and the expense is recorded as a reduction of revenue. We recorded a reduction of gaming operations revenue from the accretion of contract rights under development agreements and placement fees of $1.5 million and $1.6 million for the three months ended March 31, 2025 and 2024, respectively.