XML 82 R14.htm IDEA: XBRL DOCUMENT v3.20.1
Goodwill and Other Intangible Assets
 3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
A reconciliation of goodwill and accumulated goodwill impairment losses, by reportable segment, is as follows:
(in millions)
Northeast
 
South
 
West
 
Midwest
 
Other
 
Total
Balance as of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Goodwill, gross
$
914.3

 
$
236.6

 
$
216.8

 
$
1,116.7

 
$
156.1

 
$
2,640.5

Accumulated goodwill impairment losses
(717.9
)
 
(52.0
)
 
(16.6
)
 
(495.6
)
 
(87.7
)
 
(1,369.8
)
Goodwill, net
196.4

 
184.6

 
200.2

 
621.1

 
68.4

 
1,270.7

Impairment losses during period
(43.5
)
 
(9.0
)
 
—

 
(60.5
)
 
—

 
(113.0
)
Balance as of March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Goodwill, gross
914.3

 
236.6

 
216.8

 
1,116.7

 
156.1

 
2,640.5

Accumulated goodwill impairment losses
(761.4
)
 
(61.0
)
 
(16.6
)
 
(556.1
)
 
(87.7
)
 
(1,482.8
)
Goodwill, net
$
152.9

 
$
175.6

 
$
200.2

 
$
560.6

 
$
68.4

 
$
1,157.7

2020 Interim Assessment for Impairment
During the first quarter of 2020, we identified an indicator of impairment on our goodwill and other intangible assets due to the COVID-19 pandemic. As a result of the COVID-19 pandemic, we revised our cash flow projections to reflect the current economic environment, including the uncertainty surrounding the nature, timing and extent of reopening our gaming properties. As a result of the interim assessment for impairment, we recognized impairments on our goodwill, gaming licenses and trademarks of $113.0 million, $437.0 million and $61.5 million, respectively. The estimated fair values of the reporting units
were determined through a combination of a discounted cash flow model and a market-based approach, which utilized Level 3 inputs. The estimated fair values of the gaming licenses and trademarks were determined by using discounted cash flow models, which utilized Level 3 inputs.
As noted in the table above, the goodwill impairments pertained to our Northeast, South and Midwest segments, in the amounts of $43.5 million, $9.0 million and $60.5 million, respectively. The gaming license impairments pertained to our Northeast, South and Midwest segments in the amounts of $177.0 million, $166.0 million and $94.0 million, respectively. The trademark impairments pertained to our Northeast, South, Midwest and West segments, in the amounts of $17.0 million, $17.0 million, $15.0 million and $12.5 million, respectively.
There were no impairment charges recorded on goodwill and other intangible assets during the three months ended March 31, 2019.
The aforementioned impairments are included in “Impairment losses” within our unaudited Condensed Consolidated Statements of Operations. See Note 16, “Fair Value Measurements,” for quantitative information about the significant unobservable inputs used in the fair value measurements of other intangible assets.
As of March 31, 2020, the date of the most recent interim impairment test, five reporting units had negative carrying amounts. The amount of goodwill at these reporting units was as follows (in millions):
Northeast segment
 
Hollywood Casino at Charles Town Races
$
8.7

Hollywood Casino Toledo
$
5.8

Plainridge Park Casino
$
6.3

South segment
 
Boomtown New Orleans
$
5.2

Midwest segment
 
Ameristar Council Bluffs
$
36.2


The table below presents the gross carrying amount, accumulated amortization and net carrying amount of each major class of other intangible assets:
 
March 31, 2020
 
December 31, 2019
(in millions)
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Indefinite-lived intangible assets
 
 
 
 
 
 
 
 
 
 
 
Gaming licenses
$
1,246.0

 
$
—

 
$
1,246.0

 
$
1,681.9

 
$
—

 
$
1,681.9

Trademarks
240.9

 
—

 
240.9

 
302.4

 
—

 
302.4

Other
0.7

 
—

 
0.7

 
0.7

 
—

 
0.7

Amortizing intangible assets
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
106.8

 
(73.5
)
 
33.3

 
104.4

 
(69.0
)
 
35.4

Other
36.6

 
(31.6
)
 
5.0

 
36.1

 
(30.0
)
 
6.1

Total other intangible assets
$
1,631.0

 
$
(105.1
)
 
$
1,525.9

 
$
2,125.5

 
$
(99.0
)
 
$
2,026.5


Amortization expense related to our amortizing intangible assets was $6.1 million and $5.9 million, for the three months ended March 31, 2020 and 2019, respectively. The following table presents the estimated amortization expense based on our amortizing intangible assets as of March 31, 2020 (in millions):
Remaining 2020
$
14.6

2021
6.7

2022
4.8

2023
3.7

2024
3.6

Thereafter
4.9

Total
$
38.3