Location Contracts Acquired

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Location Contracts Acquired

Note 6. Location Contracts Acquired

Location contract assets acquired in business acquisitions are recorded at acquisition at fair value based on an income approach. Location contracts acquired consist of the following at June 30, 2020 and December 31, 2019 (in thousands):

	June 30, 2020			December 31, 2019
Cost	$	204,353		$	204,353
Accumulated amortization		(47,729	)		(37,570	)
Location contracts acquired, net	$	156,624		$	166,783

Amortization expense of location contracts acquired was $5.1 million and $10.2 million, during the three and six months ended June 30, 2020, respectively. In comparison, amortization expense of location contracts acquired was $4.0 million and $7.6 million, during the three and six months ended June 30, 2019, respectively.

Note 7. Location Contracts Acquired

Location contract assets acquired in business acquisitions are recorded at acquisition at fair value based on an income approach. Location contracts acquired consist of the following at December 31, 2019 and 2018 (in thousands):

	2019			2018
Cost	$	204,353		$	147,341
Accumulated amortization		(37,570	)		(21,302	)
Location contracts acquired, net	$	166,783		$	126,038

Each asset is amortized over the expected useful life of 10 years. Estimated amortization expense related to location contracts acquired for the next five years and thereafter is as follows:

Year ending December 31:
2020	$	20,475
2021		20,475
2022		20,475
2023		20,475
2024		20,267
Thereafter		64,615
Total	$	166,783

Amortization expense of location contracts acquired was $16.2 million, $10.8 million and $6.5 million, during the years ended December 31, 2019, 2018 and 2017, respectively.