10.	GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. The balance of goodwill was $640.6 million at June 30, 2018 and December 31, 2017, respectively.

In accordance with ASC 350, we test goodwill at the reporting unit level, which are identified as operating segments or one level below, for impairment on an annual basis and between annual tests if events and circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount.

We test for impairment annually on a reporting unit basis, at the beginning of our fourth fiscal quarter, or more often under certain circumstances. The annual impairment test is completed using either: a qualitative Step 0 assessment based on reviewing relevant events and circumstances; or a quantitative Step 1 assessment, which determines the fair value of the reporting unit, using an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether or not any impairment exists. If the fair value of a reporting unit is less than its carrying amount, we will use the Step 1 assessment to determine the impairment.

No impairment was identified for our goodwill for the three and six months ended June 30, 2018 and 2017.

Other Intangible Assets

Other intangible assets consist of the following (in thousands):

			At June 30, 2018						At December 31, 2017
	Weighted Average
	Remaining Life				Accumulated		Net Book				Accumulated		Net Book
	(years)		Cost		Amortization		Value		Cost		Amortization		Value
Other intangible assets
Contract rights under placement fee agreements		4	$	57,594	$	8,088	$	49,506	$	57,231	$	3,910	$	53,321
Customer contracts		6		51,175		44,900		6,275		51,175		43,638		7,537
Customer relationships		8		231,100		74,136		156,964		231,100		63,653		167,447
Developed technology and software		2		264,369		175,488		88,881		249,064		158,919		90,145
Patents, trademarks and other		4		29,168		24,147		5,021		29,046		23,185		5,861
Total			$	633,406	$	326,759	$	306,647	$	617,616	$	293,305	$	324,311

Amortization expense related to other intangible assets was approximately $16.6 million and $32.9 million for the three and six months ended June 30, 2018, respectively, and $17.4 million and $34.8 million for the three and six months ended June 30, 2017, respectively.

We evaluate our other intangible assets for potential impairment in connection with our quarterly review process. There was no material impairment identified for any of our other intangible assets for the three and six months ended June 30, 2018 and 2017.

We enter into placement fee agreements to secure a long-term revenue share percentage and a fixed number of player terminal placements in a gaming facility, for which the funding under placement fee agreements is not reimbursed. In return for the fees under these agreements, each facility dedicates a percentage of its floor space, or an agreed upon unit count, for the placement of our electronic gaming machines (“EGMs”) over the term of the agreement, generally 12 to 83 months, and we receive a fixed percentage or flat fee of those machines’ hold per day. Certain of the agreements contain EGM performance standards that could allow the respective facility to reduce a portion of our guaranteed floor space.

Placement fees and amounts advanced in excess of those to be reimbursed by the customer for real property and land improvements are allocated to intangible assets and are generally amortized over the term of the contract, which is recorded as a reduction of revenue generated from the facility. In the past we have, and in the future, we may, by mutual agreement, amend these agreements to reduce our floor space at the facilities. Any proceeds received for the reduction of floor space are first applied against the intangible asset for that particular placement fee agreement, if any, and the remaining net book value of the intangible asset is prospectively amortized on a straight-line method over the remaining estimated useful life.

We paid approximately $5.9 million and $11.5 million in placement fees, including $0.4 million and $1.4 million of imputed interest, to a customer for the three and six months ended June 30, 2018, respectively, and approximately $3.0 million in placement fees for the three and six months ended June 30, 2017.