Location Contracts Acquired

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Location Contracts Acquired

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 (in thousands):

	2021		2020
Cost	$	229,287	$	226,012
Accumulated amortization	(78,615)		(58,278)
Location contracts acquired, net	$	150,672	$	167,734

Each asset is amortized over the expected useful life of 15 years. Estimated amortization expense related to location contracts acquired for the next five years and thereafter is as follows:

Year ending December 31:
2022	$	13,151
2023	13,151
2024	13,151
2025	13,151
2026	13,006
Thereafter	85,062
Total	$	150,672

Amortization expense of location contracts acquired was $20.3 million, $20.8 million and $16.2 million, during the years ended December 31, 2021, 2020 and 2019, respectively. Amortization expense of location contracts is slightly lower in 2021 when compared to the prior year as the Company extended the amortization period of its location contracts from 10 years to 15 years in the fourth quarter of 2021.