Goodwill and Intangible Assets, Net |
Note 4 – Goodwill and Intangible Assets, Net
Goodwill consisted of the following:
(In thousands) |
|
June 30, 2017 |
|
|
December 31, 2016 |
|
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. See Note 2, Acquisitions, for a description of the intangible assets acquired through the Montana Acquisitions.
Intangible assets, net, consisted of the following:
|
|
June 30, 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortizing intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer relationships |
|
12.7 years |
|
|
78,100 |
|
|
|
(9,654 |
) |
|
|
68,446 |
|
Player relationships |
|
9.9 years |
|
|
7,300 |
|
|
|
(1,232 |
) |
|
|
6,068 |
|
Gaming license |
|
10.8 years |
|
|
2,100 |
|
|
|
(577 |
) |
|
|
1,523 |
|
Non-compete agreements |
|
3.5 years |
|
|
6,000 |
|
|
|
(1,813 |
) |
|
|
4,187 |
|
Other |
|
8.7 years |
|
|
1,769 |
|
|
|
(421 |
) |
|
|
1,348 |
|
|
|
|
|
|
95,269 |
|
|
|
(13,697 |
) |
|
|
81,572 |
|
Balance, June 30, 2017 |
|
|
|
$ |
108,614 |
|
|
$ |
(13,697 |
) |
|
$ |
94,917 |
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortizing intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer relationships |
|
13.2 years |
|
|
78,100 |
|
|
|
(6,932 |
) |
|
|
71,168 |
|
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 |
|
9.5 years |
|
|
1,648 |
|
|
|
(297 |
) |
|
|
1,351 |
|
|
|
|
|
|
95,148 |
|
|
|
(9,815 |
) |
|
|
85,333 |
|
Balance, December 31, 2016 |
|
|
|
$ |
108,418 |
|
|
$ |
(9,815 |
) |
|
$ |
98,603 |
|
Total amortization expense related to intangible assets was $2.0 million for both the three months ended June 30, 2017 and 2016, and $3.9 million and $3.4 million for the six months ended June 30, 2017 and 2016, respectively.
|