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Other balance sheet items (Tables)

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Trade and Other Receivables, Net

The following summarizes the balances of trade and other receivables, net as of June 30, 2020 and December 31, 2019 ($ in thousands):



	As of June 30,			As of December 31,
	2020			2019
Gross trade and other receivables ⁽¹⁾	$	27,447		$	73,015
Allowance for doubtful accounts ⁽²⁾	(580		)	(1,765		)
Total trade and other receivables, net ⁽³⁾	$	26,867		$	71,250

________


⁽¹⁾	Includes $3.0 million in receivables related to business interruption insurance claims as of June 30, 2020. There were no such receivables as of December 31, 2019.


⁽²⁾	We recognized an additional $0.8 million in bad debt expense during the year ended December 31, 2019 as a result of the bankruptcy of Thomas Cook, one of our travel partners.


⁽³⁾	The opening balance as of January 1, 2019 was $64.8 million.

Schedule of Prepayments and Other Assets

The following summarizes the balances of prepayments and other assets as of June 30, 2020 and December 31, 2019 ($ in thousands):



	As of June 30,		As of December 31,
	2020		2019
Advances to suppliers	$	9,479	$	7,865
Prepaid income taxes	11,352		12,412
Prepaid other taxes ⁽¹⁾	11,829		11,156
Right of use assets	5,285		5,673
Contract deposit ⁽²⁾	2,700		2,700
Other assets	5,318		4,885
Total prepayments and other assets	$	45,963	$	44,691

________

⁽¹⁾ Includes recoverable value-added tax, general consumption tax and other sales tax accumulated by our Mexico, Jamaica, Netherlands and Dominican Republic entities.

⁽²⁾ Represents a cash deposit related to the Sanctuary Cap Cana management contract. The deposit will be used towards a purchase of a partial interest in Sanctuary Cap Cana if we are able to agree on terms. If the purchase is not completed, this amount, together with an additional $0.8 million due, will be treated as key money.

Schedule of Goodwill

The gross carrying values and accumulated impairment losses of goodwill by reportable segment (refer to discussion of our reportable segments in Note 15) as of June 30, 2020 and December 31, 2019 are as follows ($ in thousands):



	Yucatán Peninsula			Pacific Coast		Dominican Republic		Jamaica			Total
Balance at December 31, 2019
Gross carrying value	$	51,731		$	—	$	—	$	32,776		$	84,507
Accumulated impairment losses	(6,168		)	—		—		—			(6,168		)
Net carrying value	45,563			—		—		32,776			78,339

Activity during the year
Impairment losses	—			—		—		(16,173		)	(16,173		)

Balance at June 30, 2020
Gross carrying value	51,731			—		—		32,776			84,507
Accumulated impairment losses	(6,168		)	—		—		(16,173		)	(22,341		)
Net carrying value	$	45,563		$	—	$	—	$	16,603		$	62,166

We performed an interim quantitative impairment analysis as of March 31, 2020 and recognized $16.2 million of goodwill impairment losses at the following reporting units within impairment loss in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2020 as we determined that their carrying values exceeded their fair value ($ in thousands):



Reporting Unit	Reportable Segment	Impairment Loss
Jewel Runaway Bay Beach Resort & Waterpark	Jamaica	$	6,946
Jewel Dunn’s River Beach Resort & Spa	Jamaica	$	5,126
Jewel Paradise Cove Beach Resort & Spa	Jamaica	$	4,101

Schedule of Other Intangible Assets, Indefinite-Lived

Other intangible assets as of June 30, 2020 and December 31, 2019 consisted of the following ($ in thousands):



	As of June 30,			As of December 31,
	2020			2019
Gross carrying value
Casino and other licenses ⁽¹⁾	$	875		$	875
Management contract	1,900			1,900
Enterprise resource planning system ⁽²⁾	5,544			5,187
Other	3,802			3,346
Total gross carrying value	12,121			11,308

Accumulated amortization
Management contract	(190		)	(143		)
Enterprise resource planning system ⁽²⁾	(763		)	(437		)
Other	(2,613		)	(2,320		)
Total accumulated amortization	(3,566		)	(2,900		)

Net carrying value
Casino and other licenses ⁽¹⁾	875			875
Management contract	1,710			1,757
Enterprise resource planning system ⁽²⁾	4,781			4,750
Other	1,189			1,026
Total net carrying value	$	8,555		$	8,408

________


⁽¹⁾	Our casino licenses have indefinite lives. Accordingly, there is no associated amortization expense or accumulated amortization.

⁽²⁾

Represents software development costs incurred to develop and implement SAP as our integrated enterprise resource planning (“ERP”) system, of which $1.3 million and $2.6 million was placed into service in 2020 and 2019, respectively and are being amortized over a weighted-average amortization period of 7 years.

Schedule of Other Intangible Assets, Finite-Lived

Other intangible assets as of June 30, 2020 and December 31, 2019 consisted of the following ($ in thousands):



	As of June 30,			As of December 31,
	2020			2019
Gross carrying value
Casino and other licenses ⁽¹⁾	$	875		$	875
Management contract	1,900			1,900
Enterprise resource planning system ⁽²⁾	5,544			5,187
Other	3,802			3,346
Total gross carrying value	12,121			11,308

Accumulated amortization
Management contract	(190		)	(143		)
Enterprise resource planning system ⁽²⁾	(763		)	(437		)
Other	(2,613		)	(2,320		)
Total accumulated amortization	(3,566		)	(2,900		)

Net carrying value
Casino and other licenses ⁽¹⁾	875			875
Management contract	1,710			1,757
Enterprise resource planning system ⁽²⁾	4,781			4,750
Other	1,189			1,026
Total net carrying value	$	8,555		$	8,408

________


⁽¹⁾	Our casino licenses have indefinite lives. Accordingly, there is no associated amortization expense or accumulated amortization.

⁽²⁾

Schedule of Trade and Other Payables

The following summarizes the balances of trade and other payables as of June 30, 2020 and December 31, 2019 ($ in thousands):



	As of June 30,		As of December 31,
	2020		2019
Trade payables	$	22,724	$	45,299
Advance deposits ⁽¹⁾	25,377		53,769
Withholding and other taxes payable	42,074		46,983
Interest payable	870		125
Payroll and related accruals	13,110		14,547
Accrued expenses and other payables	17,083		20,880
Total trade and other payables	$	121,238	$	181,603

________

⁽¹⁾

The opening balance as of January 1, 2019 was $57.3 million.

Schedule of Other Liabilities

The following summarizes the balances of other liabilities as of June 30, 2020 and December 31, 2019 ($ in thousands):



	As of June 30,		As of December 31,
	2020		2019
Pension obligation ⁽¹⁾⁽²⁾	$	5,524	$	6,764
Lease liabilities	5,850		6,208
Unfavorable ground lease liability	2,170		2,187
Key money ⁽³⁾	16,257		8,225
Other	895		923
Total other liabilities	$	30,696	$	24,307

________

⁽¹⁾For the six months ended June 30, 2020 and 2019, the service cost component of net periodic pension cost was $0.4 million and $0.4 million, respectively. For the three months ended June 30, 2020 and 2019, the service cost component of net periodic pension cost was $0.2 million and $0.2 million, respectively. These costs are recorded within direct expense in the Condensed Consolidated Statements of Operations.

⁽²⁾For the six months ended June 30, 2020 and 2019, the non-service cost components of net periodic pension benefit or cost were $1.3 million and $0.2 million, respectively. For the three months ended June 30, 2020 and 2019, the non-service cost components of net periodic pension benefit or cost were $0.7 million and $0.2 million, respectively. These costs are recorded within other income (expense) in the Condensed Consolidated Statements of Operations.

⁽³⁾ Represents the unamortized balance of key money received, which is amortized as a reduction to franchise fees within direct expenses in the Condensed Consolidated Statements of Operations. We received $8.5 million and $6.5 million in 2020 and 2019, respectively.