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Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2022
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)

 

 

 

Balance at December 31, 2020

 

$

99,847

 

Business acquisition

 

 

11,776

 

Foreign currency translation adjustments

 

 

455

 

Balance at December 31, 2021

 

 

112,078

 

Business acquisition

 

 

16,787

 

Foreign currency translation adjustments

 

 

(7,436

)

Balance at December 31, 2022

 

$

121,429

 

 

The following table summarizes the remaining goodwill by reporting unit:

 

 

December 31,

 

(in thousands)

 

2022

 

 

2021

 

Pursuit:

 

 

 

 

 

 

Banff Jasper Collection

 

$

62,383

 

 

$

66,898

 

Alaska Collection

 

 

3,184

 

 

 

3,184

 

Glacier Park Collection

 

 

16,787

 

 

 

 

FlyOver

 

 

39,075

 

 

 

41,996

 

Total Goodwill

 

$

121,429

 

 

$

112,078

 

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.

During 2020, we recorded non-cash goodwill impairment charges of $185.8 million, which was 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 December 31, 2022 of $121.4 million pertains to our Pursuit business.

During 2022, we considered changes in macroeconomic facts and circumstances, particularly high inflation and the resulting rise in interest rates, which resulted in reduced fair values to our reporting units. As a result of our most recent impairment analysis performed as of October 31, 2022, the excess of the estimated fair value over the carrying value for our reporting units with reported goodwill (expressed as a percentage of the carrying amounts) under step one of the impairment test for the Banff Jasper Collection and the Alaska Collection was significant, and Glacier Park Collection was 17% and FlyOver was 19%. Accordingly, no impairment charges were recorded during 2022.

We will continue to closely monitor actual results versus expectations as well as whether and to what extent any significant changes in current events or conditions result in corresponding changes to our expectations about future estimated cash flows and discount rates. If our adjusted expectations of the operating results of our reporting units do not materialize, or the discount rate increases (based on increases in interest rates, market rates of return or market volatility), it is possible that we may be required to record goodwill impairment charges in the future, which may be material.

Our accumulated goodwill impairment was $415.5 million as of December 31, 2022 and 2021.

Other intangible assets consisted of the following:

 

 

 

 

December 31, 2022

 

 

December 31, 2021

 

(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

 

7.4

 

$

37,194

 

 

$

(30,109

)

 

$

7,085

 

 

$

36,848

 

 

$

(28,372

)

 

$

8,476

 

Operating contracts and licenses

 

34.1

 

 

38,993

 

 

 

(3,504

)

 

 

35,489

 

 

 

40,927

 

 

 

(2,660

)

 

 

38,267

 

In-place lease

 

33.8

 

 

14,420

 

 

 

(1,404

)

 

 

13,016

 

 

 

15,464

 

 

 

(1,084

)

 

 

14,380

 

Tradenames

 

4.0

 

 

5,546

 

 

 

(3,324

)

 

 

2,222

 

 

 

5,626

 

 

 

(2,819

)

 

 

2,807

 

Other

 

5.2

 

 

770

 

 

 

(163

)

 

 

607

 

 

 

824

 

 

 

(139

)

 

 

685

 

Total amortized intangible assets

 

 

 

 

96,923

 

 

 

(38,504

)

 

 

58,419

 

 

 

99,689

 

 

 

(35,074

)

 

 

64,615

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business licenses

 

 

 

 

566

 

 

 

 

 

 

566

 

 

 

574

 

 

 

 

 

 

574

 

Other intangible assets

 

 

 

$

97,489

 

 

$

(38,504

)

 

$

58,985

 

 

$

100,263

 

 

$

(35,074

)

 

$

65,189

 

 

Intangible asset amortization expense (excluding amortization expense of ROU assets) was $5.2 million during 2022, $5.8 million during 2021, and $6.4 million during 2020. We recorded a non-cash impairment charge to intangible assets of $15.7 million during 2020 related our United States audio-visual production business.

At December 31, 2022, the estimated future amortization expense related to intangible assets subject to amortization is as follows:

 

(in thousands)

 

 

 

Year ending December 31,

 

 

 

2023

 

$

4,565

 

2024

 

 

3,619

 

2025

 

 

2,321

 

2026

 

 

2,288

 

2027

 

 

1,891

 

Thereafter

 

 

43,735

 

Total

 

$

58,419