Impairment and Credit Losses

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Impairment and Credit Losses

Note 3. Impairments and Credit Losses

Starting in early 2020, the challenges related to COVID-19 have significantly impacted our expected investments, operating plans and projected cash flows. Refer to Note 1. General for further information regarding COVID-19 and its impact to the Company. As a result of these events, we performed interim impairment evaluations during 2020 on certain assets.

During the quarter ended March 31, 2020, we recognized combined impairment and credit losses of $1.1 billion which are reported within Impairment and credit losses within our consolidated statements of comprehensive loss. The impairment losses of $1.1 billion were primarily related to our goodwill, trademarks and trade names, property and equipment, net and right-of-use assets. The credit losses of $38.1 million recognized during the quarter ended March 31, 2020 related to our notes receivable.

In addition, an impairment charge of $39.7 million related to our equity investments was recognized in earnings during the quarter ended March 31, 2020 and is reported within Equity investment loss within our consolidated statements of comprehensive loss.

For the quarter ended March 31, 2021, we had no indication of impairment or credit losses. The adverse impact COVID-19 will continue to have on our business, operating results, cash flows and overall financial condition is uncertain and may result in changes to the assumptions used in the impairment tests discussed above, which may result in additional impairments to these assets in the future.