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Goodwill, Trade Names/Trademarks and Other Intangible Assets, Net
12 Months Ended
Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill, Trade Names/Trademarks and Other Intangible Assets, Net

9. GOODWILL, TRADE NAMES/TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET

Goodwill, Net

Goodwill, net, at December 31, 2019 and 2018 relates to the Company’s Discovery Cove reporting unit.  The Company performed a qualitative assessment at December 1, 2019 and 2018, and concluded that further evaluation was unnecessary.

During 2017, due to financial performance particularly late in the second quarter of 2017 at the Company’s SeaWorld Orlando park, the Company determined a triggering event occurred that required an interim goodwill impairment test for its SeaWorld Orlando reporting unit. Based on financial performance and the resulting impact on projections of future cash flows for this reporting unit at that time, the Company concluded in 2017 that the goodwill related to the SeaWorld Orlando reporting unit was fully impaired and, as a result, recorded a non-cash goodwill impairment charge of $269.3 million in the accompanying consolidated statement of comprehensive income (loss) during the year ended December 31, 2017. The estimated fair value for the SeaWorld Orlando reporting unit was determined using the income approach and represents a Level 3 fair value measurement measured on a non-recurring basis in the fair value hierarchy due to the Company’s use of internal projections and unobservable measurement inputs.

Trade Names/Trademarks, Net

The Company performed a qualitative assessment for its other indefinite-lived intangible assets at December 1, 2019 and 2018 and concluded that further evaluation was unnecessary.

Trade names/trademarks, net, at December 31, 2019, consisted of the following:

 

  

 

Weighted

Average

Amortization

Period

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

 

 

 

(In thousands)

 

Trade names/trademarks - indefinite lives

 

 

 

$

157,000

 

 

$

 

 

$

157,000

 

Trade names/trademarks- finite lives

 

9.3 years

 

 

12,900

 

 

 

12,900

 

 

 

 

Total trade names/trademarks, net

 

 

 

$

169,900

 

 

$

12,900

 

 

$

157,000

 

 

Trade names/trademarks, net, at December 31, 2018, consisted of the following:

 

  

 

Weighted

Average

Amortization

Period

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

 

 

 

(In thousands)

 

Trade names/trademarks - indefinite lives

 

 

 

$

157,000

 

 

$

 

 

$

157,000

 

Trade names/trademarks- finite lives

 

9.3 years

 

 

12,900

 

 

 

11,557

 

 

 

1,343

 

Total trade names/trademarks, net

 

 

 

$

169,900

 

 

$

11,557

 

 

$

158,343

 

 

Other Intangible Assets, Net

As of December 31, 2019, other intangible assets, net, consisted of other indefinite-lived intangible assets with a gross and net carrying amount of $0.5 million. During the year ended December 31, 2019, the Company wrote-off fully amortized intangible assets with an aggregate book value and accumulated amortization of $22.8 million, which related to reseller agreements and a non-compete agreement. 

 

Other intangible assets, net, at December 31, 2018, consisted of the following:

 

 

 

Weighted

Average

Amortization

Period

 

Gross

Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Value

 

 

 

 

 

(In thousands)

 

Favorable lease asset

 

39 years

 

$

18,200

 

 

$

4,200

 

 

$

14,000

 

Reseller agreements

 

8.1 years

 

 

22,300

 

 

 

22,300

 

 

 

 

Non-compete agreement

 

5 years

 

 

500

 

 

 

500

 

 

 

 

Other intangible assets - indefinite lives

 

 

 

 

120

 

 

 

 

 

 

120

 

Total other intangible assets, net

 

 

 

$

41,120

 

 

$

27,000

 

 

$

14,120

 

 

Upon adoption of ASC 842, Leases, on January 1, 2019, the Company reclassified the favorable lease asset above from other intangible assets, net, to right of use assets-operating leases in the accompanying consolidated balance sheet.  See further details in Note 14Leases.

  

Total amortization expense was approximately $1.4 million, $2.2 million and $4.6 million for the years ended December 31, 2019, 2018 and 2017, respectively.