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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Note 9—Goodwill and Other Intangible Assets
A reconciliation of goodwill and accumulated goodwill impairment losses, by reportable segment, is as follows:
(in millions)NortheastSouthWestMidwestInteractiveOtherTotal
Balance as of January 1, 2022
Goodwill, gross$923.5 $236.6 $216.8 $1,116.7 $1,724.0 $87.7 $4,305.3 
Accumulated goodwill impairment losses(761.4)(61.0)(16.6)(556.1)— (87.7)(1,482.8)
Goodwill, net$162.1 $175.6 $200.2 $560.6 $1,724.0 $— $2,822.5 
Effect of foreign currency exchange rates— — — — (97.1)— (97.1)
Impairment losses during year(37.4)— — — — — (37.4)
Other (1)
— — — — 1.5 — 1.5 
Balance as of December 31, 2022
Goodwill, gross$923.5 $236.6 $216.8 $1,116.7 $1,628.4 $87.7 $4,209.7 
Accumulated goodwill impairment losses(798.8)(61.0)(16.6)(556.1)— (87.7)(1,520.2)
Goodwill, net$124.7 $175.6 $200.2 $560.6 $1,628.4 $— $2,689.5 
Goodwill acquired during year— — — — 231.9 — 231.9 
Goodwill disposed of during the year— — — — (231.9)— (231.9)
Effect of foreign currency exchange rates— — — — 35.6 — 35.6 
Impairment losses during year(30.0)— — — — — (30.0)
Balance as of December 31, 2023
Goodwill, gross$923.5 $236.6 $216.8 $1,116.7 $1,664.0 $87.7 $4,245.3 
Accumulated goodwill impairment losses(828.8)(61.0)(16.6)(556.1)— (87.7)(1,550.2)
Goodwill, net$94.7 $175.6 $200.2 $560.6 $1,664.0 $— $2,695.1 
(1)Amount relates to theScore purchase price measurement period adjustment.
During the year ended December 31, 2023, in connection with the Barstool SPA, we recorded a pre-tax loss on disposal of $923.2 million, inclusive of a goodwill write-off of $231.9 million within our Interactive segment. See Note 6, “Acquisitions and Dispositions.”
2023 Annual Assessment for Impairment
As a result of our 2023 annual assessment for impairment as of October 1, 2023, we recognized impairments on our goodwill and gaming licenses of $30.0 million and $100.6 million, respectively.
The impairment of goodwill was specific to our Hollywood Casino Greektown (“Greektown”) reporting unit and is due to continued economic challenges in the region in which it operates. As a result, we revised the cash flow projections for the reporting unit to be reflective of the current operating results and related economic environment. The estimated fair value of the reporting unit was determined through a combination of a discounted cash flow model and a market-based approach, which utilized Level 3 inputs.
The impairment of gaming licenses related to (i) Greektown, due to the reasons discussed above; (ii) Hollywood Casino at PENN National Race Course (“PNRC”), which was largely due to the former expansion of gaming legislation in the market and increased supply, particularly from our recent openings of Hollywood Casino York and Hollywood Casino Morgantown, which continues to reduce the long-term projections of the property; and (iii) Ameristar East Chicago, which was largely due to increased supply in the region. The estimated fair values of the gaming licenses were determined by using a discounted cash flow model, which utilized Level 3 inputs.
The annual assessment for impairment did not result in any impairment charges to trademarks. The estimated fair values of trademarks were determined by using discounted cash flow models, which utilized Level 3 inputs.
The total 2023 goodwill and gaming license impairment charges of $30.0 million and $100.6 million, respectively, pertained to our Northeast Segment.
2022 Annual and Interim Assessment for Impairment
During the third quarter of 2022, we identified an indicator of impairment on goodwill and other intangible assets at the Greektown reporting unit as the majority of the hotel was out of service for longer than anticipated during renovations caused by water damage. As a result, we revised the cash flow projections for the reporting unit to be reflective of current operating results and the related economic environment. As a result of the interim assessment for impairment, during the third quarter of 2022, we recognized impairment charges on our goodwill and gaming licenses of $37.4 million and $65.4 million, respectively. The estimated fair value of the reporting unit was determined through a combination of a discounted cash flow model and a market-based approach, which utilized Level 3 inputs. The estimated fair value of the gaming license was determined by using a discounted cash flow model, which utilized Level 3 inputs.
As a result of our 2022 annual assessment for impairment as of October 1, 2022, we recognized a $13.6 million impairment charge on our gaming licenses. The impairment of gaming licenses is specific to PNRC and was largely due to the expansion of gaming legislation in the market and increased supply, particularly from our recent openings of Hollywood Casino York and Hollywood Casino Morgantown, which reduced long-term projections of the property. The estimated fair values of our gaming licenses were determined by using discounted cash flow models, which utilized Level 3 inputs.
The annual assessment for impairment did not result in any impairment charges to goodwill or trademarks. The estimated fair value of reporting units was determined through a combination of discounted cash flow models and market-based approaches, which utilized Level 3 inputs. The estimated fair values of trademarks were determined by using discounted cash flow models, which utilized Level 3 inputs.
The total 2022 goodwill and gaming license impairment charges of $37.4 million and $79.0 million, respectively, pertained to our Northeast segment.
2021 Annual Assessment for Impairment
We completed our annual assessment for impairment as of October 1, 2021, which did not result in any impairment charges to goodwill, gaming licenses or trademarks. The estimated fair value of reporting units were determined through a combination of discounted cash flow models and market-based approaches, which utilized Level 3 inputs. The estimated fair values of our gaming licenses and trademarks were determined by using discounted cash flow models, which utilized Level 3 inputs.
Carrying Values of Goodwill and Other Intangible Assets
As of October 1, 2023, the date of the most recent annual impairment test, four reporting units had negative carrying amounts. The amount of goodwill at these reporting units was as follows (in millions):
Northeast segment
Plainridge Park Casino$6.3 
South segment
Ameristar Vicksburg$19.5 
West segment
Cactus Petes and Horseshu$10.2 
Midwest segment
Ameristar Council Bluffs$36.2 
The table below presents the gross carrying amount, accumulated amortization, and net carrying amount of each major class of other intangible assets:
December 31, 2023December 31, 2022
(in millions)Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Indefinite-lived intangible assets
Gaming licenses$1,107.2 $— $1,107.2 $1,207.6 $— $1,207.6 
Trademarks334.4 — 334.4 332.2 — 332.2 
Other0.7 — 0.7 0.7 — 0.7 
Amortizing intangible assets
Customer relationships112.1 (103.7)8.4 114.4 (102.0)12.4 
Technology286.0 (132.3)153.7 249.6 (80.4)169.2 
Other29.0 (15.2)13.8 27.7 (10.9)16.8 
Total other intangible assets, net$1,869.4 $(251.2)$1,618.2 $1,932.2 $(193.3)$1,738.9 
During the year ended December 31, 2023, in connection with the Barstool SPA, we recorded a pre-tax loss on disposal of $923.2 million, inclusive of trademarks and other intangible assets write-offs of $482.9 million in our Interactive segment. See Note 6, “Acquisitions and Dispositions.”
Amortization expense related to our amortizing intangible assets was $58.8 million, $56.7 million, and $19.6 million for the years ended December 31, 2023, 2022, and 2021, respectively. The following table presents the estimated amortization expense based on our amortizing intangible assets as of December 31, 2023 (in millions):
Years ending December 31:
2024$61.4 
202540.4 
202625.6 
202722.5 
202817.6 
Thereafter8.4 
Total$175.9