5.GOODWILL AND INTANGIBLE ASSETS

Goodwill

We test goodwill for impairment as of October 1 each year, or more frequently as circumstances indicate it is necessary. Testing compares the estimated fair values of our reporting units to the reporting units’ carrying values. Our reporting units with goodwill balances as of December 31, 2013 include our Edmonton casino property, our CPL casino operations, and UHA’s REC project development activities. We consider a variety of factors when estimating the fair value of our reporting units, including estimates about the future operating results of each reporting unit, multiples of earnings, various market analyses, and recent sales of comparable businesses, if such information is available to us. The Company makes a variety of estimates and judgments about the relevance and comparability of these factors to the reporting units in estimating their fair values. If the carrying value of a reporting unit exceeds its estimated fair value, the fair value of each reporting unit is allocated to the reporting unit’s assets and liabilities to determine the implied fair value of the reporting unit’s goodwill and whether impairment is necessary. No impairment charges related to goodwill have been recorded during 2013 and 2012.

Changes in the carrying amount of goodwill related to the Company’s Edmonton property, CPL and UHA for the period ended December 31, 2013 are as follows:


Amounts in thousands	Edmonton	Casinos Poland	UHA	Total
Balance – January 1, 2013	$ 4,941	$ 0	$ 0	$ 4,941
Purchase of Casinos Poland (Note 3)	0	8,070	0	8,070
Purchase of UHA (Note 3)	0	0	178	178
Effect of foreign currency translation	(319)	409	0	90
Balance – December 31, 2013	$ 4,622	$ 8,479	$ 178	$ 13,279

Intangible Assets

Trademarks

The Company currently owns two trademarks, the Century Casinos trademark and the Casinos Poland trademark. As of April 8, 2013, the Company began reporting the Casinos Poland trademark as an intangible asset on the Company’s consolidated balance sheets. No impairment charges related to trademarks have been recorded during 2013 and 2012.

As of December 31, 2013, the carrying amounts of the trademarks were as follows:


Amounts in thousands
Century Casinos	$ 108
Casinos Poland	2,021
Total	$ 2,129


Amounts in thousands	Century Casinos, Inc.	Casinos Poland	Total
Balance – January 1, 2013	$ 104	$ 0	$ 104
Additions	4	0	4
Purchase of Casinos Poland (Note 3)	0	1,924	1,924
Effect of foreign currency translation	0	97	97
Balance – December 31, 2013	$ 108	$ 2,021	$ 2,129

The Company has determined both trademarks have indefinite useful lives and therefore the Company does not amortize trademarks. Rather, the Company tests its trademarks for impairment annually or more frequently as circumstances indicate it is necessary. The Company tests trademarks for impairment using the relief-from-royalty method. If the fair value of an indefinite-lived intangible asset is less than its carrying amount, the Company would recognize an impairment charge equal to the difference.

Casino Licenses

Casinos Poland currently has nine casino licenses each with an original term of six years. As of April 8, 2013, the Company began reporting the Polish casino licenses as finite-lived intangible assets on the Company’s consolidated balance sheets. Changes in the carrying amount of the Casinos Poland licenses from the date of acquisition to December 31, 2013 are as follows:


	Casinos Poland
Amounts in thousands
Balance – April 8, 2013	$ 2,533
Amortization	(395)
Effect of foreign currency translation	107
Balance – December 31, 2013	$ 2,245

As of December 31, 2013, estimated amortization expense for the CPL casino licenses over the next five years is as follows:


Amounts in thousands
2014	569
2015	569
2016	531
2017	433
2018	127
Thereafter	16
	$ 2,245

Such estimates do not reflect the impact of future foreign exchange rate changes or the renewal of the licenses. The weighted average period before the next renewal is 4.0 years.

UHA currently has one casino license pending final approval from the AGLC for the REC project. As of November 29, 2013, the Company began reporting the UHA license as an intangible asset on the Company’s consolidated balance sheet. As of December 31, 2013, the carrying amount of the license was $3.0 million. No impairment charges related to the license have been recorded during 2013.


	UHA
Amounts in thousands
Balance – November 29, 2013	$ 3,001
Effect of foreign currency translation	10
Balance – December 31, 2013	$ 2,991