Location Contracts Acquired

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Location Contracts Acquired

Location Contracts Acquired

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

	2022		2021
Cost	$	282,653	$	229,287
Accumulated amortization	(93,310)		(78,615)
Location contracts acquired, net	$	189,343	$	150,672

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

Year ending December 31:
2023	$	17,040
2024	17,040
2025	17,040
2026	16,895
2027	16,791
Thereafter	104,537
Total	$	189,343

Amortization expense of location contracts acquired was $14.8 million, $20.3 million and $20.8 million, during the years ended December 31, 2022, 2021 and 2020, respectively. 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.