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Goodwill and Other Intangible Assets
 3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
Changes in Carrying Value of Goodwill and Other Intangible Assets
 
Amortizing Intangible Assets
 
Non-Amortizing Intangible Assets
(In millions)
 
Goodwill
 
Other
Balance as of December 31, 2019
$
270

 
$
4,012

 
$
2,554

Amortization
(18
)
 
—

 
—

Impairments
—

 
—

 
(32
)
Other
—

 
(1
)
 
(2
)
Balance as of March 31, 2020 (1)
$
252

 
$
4,011

 
$
2,520


____________________
(1) 
In addition to the reporting units disclosed in our annual report on Form 10-K, an additional reporting unit within our Other U.S. Segment with $39 million of associated goodwill has a negative carrying value. The fair value of the reporting unit exceeds the carrying value.
Gross Carrying Value and Accumulated Amortization of Intangible Assets Other Than Goodwill
 
March 31, 2020
 
December 31, 2019
(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
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade names and trademarks
0.8
 
$
14

 
$
(9
)
 
$
5

 
$
14

 
$
(8
)
 
$
6

Customer relationships
3.3
 
1,070

 
(835
)
 
235

 
1,070

 
(819
)
 
251

Contract rights
4.7
 
3

 
(2
)
 
1

 
3

 
(2
)
 
1

Gaming rights and other
4.2
 
43

 
(32
)
 
11

 
43

 
(31
)
 
12

 
 
 
$
1,130

 
$
(878
)
 
252

 
$
1,130

 
$
(860
)
 
270

Non-amortizing intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
 
776

 
 
 
 
 
776

Gaming rights
 
1,491

 
 
 
 
 
1,525

Caesars Rewards
 
253

 
 
 
 
 
253

 
 
2,520

 
 
 
 
 
2,554

Total intangible assets other than goodwill
 
$
2,772

 
 
 
 
 
$
2,824

Due to the adverse effect of the COVID-19 public health emergency on the global economy and financial markets and the resulting closure of our properties beginning in mid-March 2020, including the resulting negative operating cash flows, we revised our expected future cash flows from our properties. While the disruption caused by the COVID-19 public health emergency is expected to be temporary, it has significantly affected our projected future cash flows, which is an indication of potential impairment within our reporting units.
To test for potential impairments of our goodwill and other intangible assets, we utilized an income approach which is sensitive to the Company’s projected future cash flows. Significant assumptions and estimates that we have utilized to project our future cash flows include the dates upon which our properties will reopen and the estimated time needed for our operations to recover to levels prior to the COVID-19 public health emergency. Our projections consider various scenarios as to when our properties begin to open, such as towards the end of the second quarter of 2020 or in the third quarter of 2020. Our scenarios also consider recovery rates that assume that our properties gradually return to operating levels experienced prior to the COVID-19 public health emergency over the course of 1 to 3 years. We are uncertain of the likelihood of any of these scenarios over any others and, accordingly, have applied equal weighting to them to develop our estimate. The discount rate utilized incorporates the additional return a market participant would require for the high degree of uncertainty related to the future cash flows.
As a result of our estimate, we recognized an impairment charge related to gaming rights of $32 million related to two of our properties in our Other U.S. segment during the three months ended March 31, 2020 which has been recorded within Impairment of tangible and other intangible assets on our Statement of Operations.
These significant assumptions are highly subject to uncertainty and to change, including factors which may be outside of our control (such as the dates upon which our properties are allowed to reopen). We may record material impairments in the future if these assumptions change or events develop or progress other than as we assumed.