Goodwill and Intangible Assets, Net

3 Months Ended

Mar. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Note 4 – Goodwill and Intangible Assets, Net

Goodwill consisted of the following:

(In thousands)	March 31, 2017		December 31, 2016
Goodwill
Distributed Gaming	$	97,859	$	97,859
Casinos		7,796		7,796
Total Goodwill	$	105,655	$	105,655

Goodwill was acquired in connection with the 2015 acquisition of Sartini Gaming, Inc. through a merger transaction (the “Merger”), as well as the Montana Acquisitions. The Company may continue to record adjustments to the carrying value of assets acquired with a corresponding offset to goodwill during the measurement period related to the Second Montana Acquisition, which can be up to one year from the date of the consummation of the acquisition. See Note 2, Acquisitions, for a description of the intangible assets acquired through the Montana Acquisitions.

Intangible assets, net, consisted of the following:

	March 31, 2017
	Weighted	Gross
	Average Life	Carrying		Cumulative			Intangible
(In thousands)	Remaining	Value		Amortization			Assets, Net
Indefinite-lived intangible assets
Gaming licenses	Indefinite	$	960	$	—		$	960
Trade names	Indefinite		12,200		—			12,200
Other	Indefinite		185		—			185
			13,345		—			13,345

Finite-lived intangible assets
Player relationships	10.2 years		7,300		(1,071	)		6,229
Gaming license	11.1 years		2,100		(542	)		1,558
Non-compete agreements	3.7 years		6,000		(1,490	)		4,510
Other intangible assets	9.3 years		1,648		(359	)		1,289
			17,048		(3,462	)		13,586
Total intangible assets, other than customer relationships		$	30,393	$	(3,462	)	$	26,931

Customer relationships	13.0 years	$	78,100	$	(8,293	)	$	69,807

	December 31, 2016
	Weighted	Gross
	Average Life	Carrying		Cumulative			Intangible
(In thousands)	Remaining	Value		Amortization			Assets, Net
Indefinite-lived intangible assets
Gaming licenses	Indefinite	$	960	$	—		$	960
Trade names	Indefinite		12,200		—			12,200
Other	Indefinite		110		—			110
			13,270		—			13,270

Finite-lived intangible assets
Player relationships	10.4 years		7,300		(910	)		6,390
Gaming license	11.4 years		2,100		(508	)		1,592
Non-compete agreements	4.0 years		6,000		(1,168	)		4,832
Other intangible assets	9.5 years		1,648		(297	)		1,351
			17,048		(2,883	)		14,165
Total intangible assets, other than customer relationships		$	30,318	$	(2,883	)	$	27,435

Customer relationships	13.2 years	$	78,100	$	(6,932	)	$	71,168

Total amortization expense related to intangible assets was $2.0 million and $1.4 million for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, estimated future amortization expense was as follows:

	Remainder of
(In thousands)	2017		2018		2019		2020		2021		2022		Thereafter
Estimated amortization expense	$	5,758	$	7,610	$	7,610	$	7,463	$	6,481	$	6,294	$	42,177

- 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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