Location Contracts Acquired

9 Months Ended

Sep. 30, 2022

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 consisted of the following at September 30, 2022 and December 31, 2021 (in thousands):

	September 30, 2022		December 31, 2021
Cost	$	278,560	$	229,287
Accumulated amortization	(89,178)		(78,615)
Location contracts acquired, net	$	189,382	$	150,672

Amortization expense of location contracts acquired was $4.0 million and $10.6 million for the three and nine months ended September 30, 2022. In comparison, amortization expense of location contracts acquired was $5.7 million and $17.1 million for the three and nine months ended September 30, 2021. Amortization expense of location contracts is lower in 2022 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. This decrease was partially offset by an increase in location contracts acquired.