Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Note 8. Goodwill and Other Intangible Assets

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

(in thousands)	Marketing & Events U.S. Segment		Marketing & Events International Segment			Travel & Recreation Group			Total
Balance at December 31, 2013	$	62,686	$	22,611		$	44,246		$	129,543
Acquisition of Blitz		—		13,504			—			13,504
Acquisition of the West Glacier Properties		—		—			1,268			1,268
Acquisition of onPeak LLC		27,406		—			—			27,406
Acquisition of Travel Planners, Inc.		20,526		—			—			20,526
Acquisition of N200		—		8,563			—			8,563
Foreign currency translation adjustments		—		(2,457	)		(4,156	)		(6,613	)
Balance at December 31, 2014		110,618		42,221			41,358			194,197
Purchase price allocation adjustments		1,682		475			—			2,157
Foreign currency translation adjustments		—		(3,488	)		(7,070	)		(10,558	)
Disposals⁽¹⁾		—		(573	)		—			(573	)
Balance at December 31, 2015	$	112,300	$	38,635		$	34,288		$	185,223

⁽¹⁾

During 2015, the Company partially disposed of certain operations associated with a venue services contract within the Marketing & Events International Segment. Accordingly, goodwill of $0.6 million was included in the carrying amount of those operations, and a loss of $23,000 was recorded in income from continuing operations related to the disposal.

The following table summarizes goodwill by reporting unit and segment:

	December 31,
(in thousands)	2015		2014
Marketing & Events Group:
Marketing & Events U.S. Segment	$	112,300	$	110,618
Marketing & Events International Segment:
GES EMEA		32,064		34,396
GES Canada		6,571		7,825
Total Marketing & Events Group		150,935		152,839
Travel & Recreation Group:
Brewster		29,836		36,906
Alaska Denali Travel		3,184		3,184
Glacier Park		1,268		1,268
Total Travel & Recreation Group		34,288		41,358
Total Goodwill	$	185,223	$	194,197

Goodwill is tested for impairment 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.

For the Marketing & Events U.S. Segment, goodwill is assigned to and tested at the operating segment level. For the Marketing & Events International Segment, goodwill is assigned to and tested based on the segment’s geographical operations (GES EMEA and GES Canada). For the Travel & Recreation Group, impairment testing is performed at the reporting unit level (Brewster, Alaska Denali Travel, and Glacier Park).

As a result of the Company’s most recent impairment analysis performed as of October 31, 2015, the excess of the estimated fair value over the carrying value (expressed as a percentage of the carrying amounts) under step one of the impairment test for each of the Marketing & Events Group’s reporting units in the U.S., GES EMEA, and GES Canada was 146 percent, 132 percent, and 91 percent, respectively. For the Brewster, Alaska Denali Travel, and Glacier Park reporting units, the excess of the estimated fair value over the carrying value was 146 percent, 48 percent, and 10 percent, respectively.

Viad’s accumulated goodwill impairments were $229.7 million for both 2015 and 2014.

Intangible assets consisted of the following as of the respective periods:

	December 31, 2015
(in thousands)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Amortized intangible assets:
Customer contracts and relationships	$	38,342	$	(7,814	)	$	30,528
Other		4,401		(2,067	)		2,334
Total amortized intangible assets		42,743		(9,881	)		32,862
Unamortized intangible assets:
Business licenses		460		—			460
Total	$	43,203	$	(9,881	)	$	33,322

	December 31, 2014
(in thousands)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Amortized intangible assets:
Customer contracts and relationships	$	41,624	$	(2,961	)	$	38,663
Other		4,576		(732	)		3,844
Total amortized intangible assets		46,200		(3,693	)		42,507
Unamortized intangible assets:
Business licenses		460		—			460
Total	$	46,660	$	(3,693	)	$	42,967

Intangible asset amortization expense was $7.2 million, $2.7 million, and $1.3 million for 2015, 2014, and 2013, respectively. The weighted-average amortization period of customer contracts and relationships and other amortizable intangible assets is approximately 8.2 years and 3.1 years, respectively. Estimated future amortization expense related to amortized intangible assets is as follows:

(in thousands)
Year ending December 31,
2016	$	6,303
2017		5,492
2018		4,536
2019		4,155
2020		3,616
Thereafter		8,760
Total	$	32,862

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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