Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Value of Goodwill



	Gross Goodwill						Accumulated Impairment						Net Carrying Value
(In millions)	2013			2012			2013			2012			2013			2012
Balance as of January 1	$	9,433.7		$	9,438.6		$	(6,273.4	)	$	(6,078.2	)	$	3,160.3		$	3,360.4
Additions	15.1			14.3			—			—			15.1			14.3
Impairments	—			—			(104.3		)	(195.2		)	(104.3		)	(195.2		)
Contribution of ThistleDown to ROC venture	—			(20.1		)	—			—			—			(20.1		)
Disposals ⁽¹⁾	(14.9		)	—			—			—			(14.9		)	—
Other ⁽²⁾	7.1			0.9			—			—			7.1			0.9
Balance as of December 31	$	9,441.0		$	9,433.7		$	(6,377.7	)	$	(6,273.4	)	$	3,063.3		$	3,160.3

⁽¹⁾During 2013, we sold 45% of our interest in Baluma S.A. See Note 4.

⁽²⁾Related to CIE acquisitions of Buffalo Studios and other CIE acquisitions.

In 2012, we contributed our interests in ThistleDown to ROC and recorded a $20.1 million reduction of related goodwill. The Company did not have any reporting units with a zero or negative book value as of December 31, 2013.

Changes in Carrying Value of Intangible Assets Other Than Goodwill



	Amortizing						Non-Amortizing						Total
(In millions)	2013			2012			2013			2012			2013			2012
Balance as of January 1	$	1,027.6		$	1,163.7		$	2,958.1		$	3,199.5		$	3,985.7		$	4,363.2
Additions	19.1			37.8			—			—			19.1			37.8
Impairments	(150.3		)	—			(199.6		)	(242.0		)	(349.9		)	(242.0		)
Amortization expense	(164.5		)	(174.6		)	—			—			(164.5		)	(174.6		)
Disposals	—			—			—			—			—			—
Other	(1.9		)	0.7			(0.8		)	0.6			(2.7		)	1.3
Balance as of December 31	$	730.0		$	1,027.6		$	2,757.7		$	2,958.1		$	3,487.7		$	3,985.7

During 2013, we increased our amortizing intangible assets $19.1 million as a result of entering into certain contractual arrangements. During 2012, we acquired substantially all of the net assets of Buffalo Studios and recorded amortizing intangible assets of $37.8 million related to developed games and game titles.

Our impairment assessments of amortizing intangible assets resulted in impairment charges of $150.3 million in 2013. These impairment charges include the write-off of our $60.0 million intangible assets associated with the Suffolk management rights and certain amortizing intangibles in our Atlantic Coast region. The Atlantic Coast region impairments were primarily the result of a combination of reduced projected revenues within our long-term operating plan and a change in the discount rate.

Impairment Charges for Goodwill and Other Non-amortizing Intangible Assets



	Years Ended December 31,
(In millions)	2013		2012		2011
Goodwill	$	104.3	$	195.2	$	3.0
Non-amortizing intangible assets:
Trademarks	101.4		209.0		8.0
Gaming Rights and other	98.2		33.0		—
Total impairment charges	$	303.9	$	437.2	$	11.0

Our annual assessment of goodwill resulted in impairment charges of $104.3 million in 2013 and $195.2 million in 2012. These impairment charges were a result of the combination of a discount rate increase and reduced projected revenues within our long-term operating plan as a result of the economic climate.

Our interim and annual assessments of non-amortizing intangible assets resulted in impairment charges of $199.6 million in 2013 and $242.0 million in 2012. These impairment charges were the result of a combination of reduced projected revenues associated with these intangible assets within our long-term operating plan and a change in the discount rate.

Gross Carrying Value and Accumulated Amortization of Intangible Assets Other Than Goodwill



	December 31, 2013								December 31, 2012
(Dollars in millions)	Weighted Average Remaining Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortizing intangible assets
Customer relationships	6.0	$	1,268.1	$	(645.5	)	$	622.6	$	1,456.7	$	(618.0	)	$	838.7
Contract rights	14.5	97.6		(79.4		)	18.2		145.1		(66.3		)	78.8
Patented technology	2.8	138.3		(76.5		)	61.8		158.4		(78.3		)	80.1
Gaming rights	10.5	42.8		(15.4		)	27.4		42.8		(12.8		)	30.0
		$	1,546.8	$	(816.8	)	730.0		$	1,803.0	$	(775.4	)	1,027.6
Non-amortizing intangible assets
Trademarks							1,598.2							1,699.7
Gaming rights							1,159.5							1,258.4
							2,757.7							2,958.1
Total intangible assets other than goodwill							$	3,487.7						$	3,985.7

The aggregate amortization expense for intangible assets that continue to be amortized was $164.5 million in 2013, $174.6 million in 2012 and $156.7 million in 2011. Estimated annual amortization expense for each of the five years from 2014 through 2018 is $136.4 million, $134.9 million, $121.4 million, $110.9 million, and $90.4 million, respectively.

- 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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