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Goodwill and Other Intangible Assets
9 Months Ended
Sep. 30, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

Note 9. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill are as follows:

 

(in thousands)

 

Pursuit

 

Balance at December 31, 2020

 

$

99,847

 

Business acquisition

 

 

11,776

 

Foreign currency translation adjustments

 

 

80

 

Balance at September 30, 2021

 

$

111,703

 

Goodwill is tested for impairment at the reporting unit level on an annual basis as of October 31, and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. We use a discounted expected future cash flow methodology (income approach) to estimate the fair value of our reporting units for purposes of goodwill impairment testing.

We recorded non-cash goodwill impairment charges of $185.8 million during the nine months ended September 30, 2020 primarily related to the write-off of all of GES’ goodwill due to the deteriorating macroeconomic environment related to the COVID-19 pandemic. Our remaining goodwill balance as of September 30, 2021 of $111.7 million pertains to our Pursuit business. Although certain of Pursuit’s reporting units continue to operate at a loss due to travel restrictions as a result of the COVID-19 pandemic, we did not record any impairment charges during 2021 as there were no significant changes to our outlook for the future years and the risk profile of the reporting units had not changed.

Given the evolving nature of COVID-19, and the uncertain government and consumer reactions, the estimates and assumptions regarding expected future cash flows, discount rates, and terminal values used in our goodwill impairment analysis require considerable judgment

and are based on our current estimates of market conditions, financial forecasts, and industry trends. These estimates, however, have inherent uncertainties and different assumptions could lead to materially different results including impairment charges in the future.

Other intangible assets consisted of the following:

 

 

 

 

 

September 30, 2021

 

 

December 31, 2020

 

(in thousands)

 

Useful Life
(Years)

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Value

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Value

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer contracts and relationships

 

6.1

 

$

37,698

 

 

$

(28,398

)

 

$

9,300

 

 

$

38,214

 

 

$

(26,288

)

 

$

11,926

 

Operating contracts and licenses

 

36.0

 

 

41,391

 

 

 

(3,160

)

 

 

38,231

 

 

 

42,012

 

 

 

(2,405

)

 

 

39,607

 

In-place lease

 

13.2

 

 

15,413

 

 

 

(980

)

 

 

14,433

 

 

 

15,347

 

 

 

(656

)

 

 

14,691

 

Tradenames

 

4.6

 

 

5,607

 

 

 

(2,631

)

 

 

2,976

 

 

 

5,940

 

 

 

(2,435

)

 

 

3,505

 

Non-compete agreements

 

0.3

 

 

773

 

 

 

(734

)

 

 

39

 

 

 

770

 

 

 

(616

)

 

 

154

 

Other

 

6.4

 

 

822

 

 

 

(130

)

 

 

692

 

 

 

818

 

 

 

(102

)

 

 

716

 

Total amortized intangible assets

 

 

 

 

101,704

 

 

 

(36,033

)

 

 

65,671

 

 

 

103,101

 

 

 

(32,502

)

 

 

70,599

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business licenses

 

 

 

 

573

 

 

 

 

 

 

573

 

 

 

573

 

 

 

 

 

 

573

 

Other intangible assets

 

 

 

$

102,277

 

 

$

(36,033

)

 

$

66,244

 

 

$

103,674

 

 

$

(32,502

)

 

$

71,172

 

 

Intangible asset amortization expense was $1.6 million for the three months ended September 30, 2021 and $4.4 million for the nine months ended September 30, 2021. Intangible asset amortization was $1.5 million for the three months ended September 30, 2020 and $5.2 million for the nine months ended September 30, 2020. We recorded a non-cash impairment charge to intangible assets of $15.7 million during the nine months ended September 30, 2020 related to our United States audio-visual production business. The duration and impact of COVID-19 may result in additional future impairment charges as facts and circumstances evolve.

At September 30, 2021, the estimated future amortization expense related to intangible assets subject to amortization is as follows:

 

(in thousands)

 

 

 

Year ending December 31,

 

 

 

Remainder of 2021

 

$

1,353

 

2022

 

 

5,109

 

2023

 

 

4,451

 

2024

 

 

3,495

 

2025

 

 

2,200

 

Thereafter

 

 

49,063

 

Total

 

$

65,671