XML 86 R16.htm IDEA: XBRL DOCUMENT v2.4.1.9
Other Intangible Assets
 12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Other Intangible Assets
OTHER INTANGIBLE ASSETS
The Company’s other intangible assets are comprised of the following (in thousands):
 
December 31, 2014
 
December 31, 2013
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Definite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Favorable contracts
$
11,000

 
$
(4,907
)
 
$
6,093

 
$
11,000

 
$
(4,260
)
 
$
6,740

Customer relationships
89,203

 
(39,399
)
 
49,804

 
56,540

 
(30,464
)
 
26,076

Slots gaming license
2,250

 
(1,125
)
 
1,125

 
2,250

 
(1,125
)
 
1,125

Table games license
2,493

 
(180
)
 
2,313

 
2,493

 
(50
)
 
2,443

Developed Technology
87,000

 
(931
)
 
86,069

 
—

 
—

 
—

In-Process Research & Development
12,700

 
(105
)
 
12,595

 
—

 
—

 
—

Strategic Development
30,500

 
(263
)
 
30,237

 
—

 
—

 
—

Other
3,719

 
(326
)
 
3,393

 
3,719

 
(297
)
 
3,422

 
$
238,865

 
$
(47,236
)
 
191,629

 
$
76,002

 
$
(36,196
)
 
39,806

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Slots gaming rights
 
 
 
 
128,890

 
 
 
 
 
128,890

Trademarks
 
 
 
 
225,729

 
 
 
 
 
25,729

Illinois Horseracing Equity Trust
 
 
 
 
3,307

 
 
 
 
 
3,307

Other
 
 
 
 
417

 
 
 
 
 
417

Total
 
 
 
 
$
549,972

 
 
 
 
 
$
198,149


Amortization expense for definite-lived intangible assets was approximately $13.3 million, $12.2 million and $11.2 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is classified in operating expenses. The Company submitted payments of $2.3 million for each of the years ended December 31, 2014 and 2013, respectively, for annual license fees for Calder Casino. Payments are being amortized to expense over the annual license period.
Indefinite-lived intangible assets consist primarily of state gaming licenses in Maine, Mississippi and Florida, rights to participate in the Horse Racing Equity Fund and trademarks.
During the year ended December 31, 2014, the Company established definite-lived intangible assets of $162.9 million and indefinite-lived intangible assets of $200.0 million related to the Big Fish Games acquisition.
During the year ended December 31, 2013, the Company established definite-lived intangible assets of $3.8 million and indefinite-lived intangible assets of $60.9 million related to the Oxford acquisition. During November 2013, the Company paid $0.4 million to the State of Maine for table game fees that are being amortized over a 20-year contract period. During the year ended December 31, 2013, the Company reduced customer relationships and accumulated amortization by $2.8 million and other definite-lived intangibles and accumulated amortization by $0.4 million, related to the Harlow's acquisition, as these amounts were fully amortized. Finally, the Company expensed $0.2 million of definite-lived and indefinite lived assets related to the disposal of Fight! Magazine.
Indefinite-lived intangible assets are tested for impairment on an annual basis as of March 31. In March 2013, the Company adopted ASU No. 2012-02, Intangibles-Goodwill and Other: Testing Indefinite-Lived Intangible Assets for Impairment. ASU 2012-02 simplifies indefinite-lived intangible asset impairment testing by adding a qualitative review step to assess whether a quantitative impairment analysis is necessary. Under the amended guidance, a testing methodology similar to that which is performed for goodwill impairment testing is acceptable for assessing a company's indefinite-lived intangible assets. The Company completed the required annual impairment tests of indefinite-lived intangible assets as of March 31, 2014, and no adjustment to the carrying value of indefinite-lived intangible assets was required. The Company assessed its indefinite-lived intangible assets by qualitatively evaluating events and circumstances that have both positive and negative factors, including macroeconomic conditions, industry events, financial performance and other changes and concluded that it was more likely than not that fair value of its indefinite-lived intangible assets exceeds their carrying value.
Future estimated amortization expense does not include additional payments of $2.3 million in 2013 and in each year thereafter for the ongoing amortization of future expected annual Florida slots gaming license fees not yet incurred or paid. Future estimated aggregate amortization expense on existing definite-lived intangible assets for each of the next five fiscal years is as follows (in thousands):
Year Ended
December 31,
 
Estimated
Amortization
Expense
2015
 
$
53,818

2016
 
$
51,596

2017
 
$
35,927

2018
 
$
18,716

2019
 
$
16,638