Impact of COVID-19 Pandemic

12 Months Ended

Dec. 31, 2020

Risks and Uncertainties [Abstract]

Impact of COVID-19 Pandemic

Impact of COVID-19 Pandemic:

The novel coronavirus (COVID-19) pandemic had a material impact on our business in 2020. Most significantly, we closed our properties for several months beginning on March 14, 2020. We ultimately resumed partial operations at 10 of our 13 properties in 2020, operating in accordance with local and state guidelines. Due to soft demand trends upon reopening, park operating calendars were adjusted, including reduced operating days per week and operating hours within each operating day.

Following the March 14, 2020 closure of our properties, we took steps in 2020 to secure additional liquidity and to obtain relief from certain financial covenants, including the issuance of $1.3 billion of senior notes and amendment of our term debt and revolving credit agreement. See the Long-Term Debt footnote at Note 8.

In order to ensure our season pass holders receive a full season of access to our parks, in April 2020, we extended the usage privileges of 2020 season passes through the 2021 season and paused collections of guest payments on installment purchase products. See the Revenue Recognition footnote at Note 5.

Due to the negative effects of the COVID-19 pandemic on our expected future operating results, we tested our long-lived assets, goodwill, and indefinite-lived intangible assets for impairment as of March 29, 2020 and September 27, 2020 resulting in $106.7 million of impairment charges recorded, primarily related to the recently acquired Schlitterbahn parks. See the Long-Lived Assets footnote at Note 6 and the Goodwill and Other Intangible Assets footnote at Note 7 for further detail.

Lastly, during 2020, we benefited from the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). See the Income and Partnership Taxes footnote at Note 12 for further detail.

Management has made significant estimates and assumptions to determine our liquidity requirements and estimate the impact of the COVID-19 pandemic on our business, including financial results in the near and long-term. Actual results could materially differ from these estimates depending on the ultimate extent of the effects of the COVID-19 pandemic. Our future operations are dependent on factors beyond our knowledge or control, including the duration and severity of the COVID-19 pandemic and actions taken to contain its spread and mitigate its public health effects.