Goodwill and Indefinite-lived Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Indefinite-lived Intangible Assets Disclosure

Goodwill and Other Intangible Assets

Goodwill. Goodwill consists of the excess of the acquisition cost over the fair value of the net assets acquired in business combinations. Goodwill is subject to an annual assessment for impairment during the fourth quarter, or more frequently if there are indications of possible impairment. There were no impairments to goodwill for the years ended December 31, 2013, 2012, or 2011. During 2013, we recorded $864.1 million of goodwill related to our acquisitions of Ameristar and Pinnacle Retama Partners, LLC. During 2012, we recorded goodwill totaling $2.6 million related to our acquisition of the Heartland Poker Tour.

Other Intangible Assets. Other intangible assets consist of indefinite-lived intangible assets that include gaming licenses, trademarks and a racing license, and amortizing intangible assets, which include customer relationships and favorable leasehold interests. Our indefinite-lived intangible assets are not subject to amortization, but instead are reviewed annually for impairment during the fourth quarter of each fiscal year, or more frequently if events or circumstances indicate the carrying value may not be recoverable.

During 2013, we acquired $529.2 million of intangible other assets related to our acquisition of Ameristar and Pinnacle Retama Partners, LLC. In November 2013, we completed the sale of our equity interests in the entity developing the Ameristar Casino Lake Charles project, and as a result, we no longer hold a $29.8 million gaming license acquired through the Ameristar acquisition.

During the third quarter of 2013, we determined there was an indication of impairment for our Boomtown Bossier City gaming license due to a decrease in forecasted financial performance resulting from new competition, and we recorded an impairment of $10 million. The fair value of the license was calculated using discounted cash flows using Level 3 inputs.

The following tables set forth changes in the carrying value of goodwill and other intangible assets:



	December 31, 2013
	Weighted Average Life Remaining (years)	Gross Carrying Value		Cumulative Amortization			Cumulative Impairment Losses			Intangible Assets, Net
Goodwill:	(in millions)
Ameristar acquisition	Indefinite	$	860.8	$	—		$	—		$	860.8
Belterra Park	Indefinite	35.8		—			—			35.8
Boomtown New Orleans	Indefinite	16.8		—			—			16.8
Other	Indefinite	5.9		—			—			5.9
		919.3		—			—			919.3
Indefinite-lived Intangible Assets:
Gaming license	Indefinite	268.6		—			(31.1		)	237.5
Trade name	Indefinite	187.2		—			—			187.2
Racing license	Indefinite	5.0		—			—			5.0
		460.8		—			(31.1		)	429.7
Amortizing Intangible Assets:
Player relationships	6	75.1		(9.0		)	—			66.1
Favorable leasehold interests	32	4.4		(0.1		)	—			4.3
		79.5		(9.1		)	—			70.4
Total Goodwill and Other Intangible Assets		$	1,459.6	$	(9.1	)	$	(31.1	)	$	1,419.4



	December 31, 2012
	Weighted Average Life Remaining	Gross Carrying Value		Cumulative Amortization			Cumulative Impairment Losses			Intangible Assets, Net
Goodwill:	(in millions)
Belterra Park	Indefinite	$	35.8	$	—		$	—		$	35.8
Boomtown New Orleans	Indefinite	16.8		—			—			16.8
Other	Indefinite	2.6		—			—			2.6
		55.2		—			—			55.2
Indefinite-lived Intangible Assets:
Gaming license	Indefinite	39.6		—			(21.1		)	18.5
Trade name	Indefinite	0.2		—			—			0.2
Other	Indefinite	1.1		—			—			1.1
		40.9		—			(21.1		)	19.8
Amortizing Intangible Assets:
Player relationships	10	1.1		(0.1		)	—			1.0
		1.1		(0.1		)	—			1.0
Total Goodwill and Other Intangible Assets		$	97.2	$	(0.1	)	$	(21.1	)	$	76.0

Player relationships are being amortized on an accelerated basis over an approximate weighted average life remaining six-year period. Favorable leasehold interest are being amortized on a straight-line basis over an approximate weighted average remaining useful life of 32 years. Future amortization is as follows:



	Player Relationships		Favorable Leasehold Interests		Total
	(in millions)
Year ending December 31:
2014	$	20.7	$	0.1	$	20.8
2015	15.8		0.1		15.9
2016	11.9		0.1		12.0
2017	8.8		0.1		8.9
2018	6.5		0.1		6.6
Thereafter	2.4		3.8		6.2
Total	$	66.1	$	4.3	$	70.4

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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