Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

v3.19.3
Goodwill and Other Intangible Assets
9 Months Ended
Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

11.

Goodwill and Other Intangible Assets

The Company’s goodwill was as follows:

 

 

 

U.S.

Operating

Segment

 

 

International

Operating

Segment

 

 

Total

 

Balance at January 1, 2019 (1)

 

$

1,174,041

 

 

$

102,283

 

 

$

1,276,324

 

Theatres acquired in the US and Brazil (2)

 

 

8,812

 

 

 

869

 

 

 

9,681

 

Foreign currency translation adjustments

 

 

 

 

 

(4,651

)

 

 

(4,651

)

Balance at September 30, 2019 (1)

 

$

1,182,853

 

 

$

98,501

 

 

$

1,281,354

 

 

 

(1)

Balances are presented net of accumulated impairment losses of $214,031 for the U.S. operating segment and $27,622 for the international operating segment.

 

(2)

Amount represents final purchase price allocation for two theatres acquired in the U.S. during 2019 and the final purchase price allocation adjustment for theatres acquired in Brazil during 2018.

The Company evaluates goodwill for impairment annually during the fourth quarter or whenever events or changes in circumstances indicate the carrying value of the goodwill may not be fully recoverable.  The Company evaluates goodwill for impairment at the reporting unit level and has allocated goodwill to the reporting unit based on an estimate of its relative fair value. Management considers the reporting unit to be each of its nineteen regions in the U.S. and seven countries internationally with Honduras, El Salvador, Nicaragua, Costa Rica, Panama and Guatemala considered one reporting unit (the Company does not have goodwill recorded for all of its international locations).  For the year ended December 31, 2018, the Company performed a quantitative goodwill impairment assessment on all reporting units, in accordance with ASC Topic 350-20-35.  No events or changes in circumstances occurred during the nine months ended September 30, 2019 that indicated the carrying value of goodwill might exceed its estimated fair value.

Intangible assets consisted of the following:

 

 

 

Balance at January 1, 2019

 

Impact of Adoption of ASC Topic 842 (1)

 

Amortization

 

Other (2)

 

Balance at September 30, 2019

 

Intangible assets with finite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross carrying amount

 

$

105,256

 

$

(18,024

)

$

 

$

(2,501

)

$

84,731

 

Accumulated amortization

 

 

(74,603

)

 

13,597

 

 

(3,730

)

 

2,130

 

 

(62,606

)

Total net intangible assets with finite lives

 

$

30,653

 

$

(4,427

)

$

(3,730

)

$

(371

)

$

22,125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets with indefinite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tradename and other

 

 

300,257

 

 

 

 

289

 

 

300,546

 

Total intangible assets — net

 

$

330,910

 

$

(4,427

)

$

(3,730

)

$

(82

)

$

322,671

 

 

 

(1)

See Note 3 for further discussion of the impact of adoption of ASC Topic 842.

 

(2)

Amount represents the write-off of fully amortized intangible assets related to non-compete agreements, the acquisition of tradeable liquor licenses, fair values allocated to intangible assets acquired as part of acquisitions of two theatres in the U.S. and foreign currency translation adjustments.

For the year ended December 31, 2018, the Company performed a quantitative assessment for all definite and indefinite-lived tradename assets.  No events or changes in circumstances occurred during the nine months ended September 30, 2019 that indicated the carrying value of its tradename assets might exceed their estimated fair values.

Estimated aggregate future amortization expense for intangible assets is as follows:

 

For the three months ended December 31, 2019

 

$

1,254

 

For the twelve months ended December 31, 2020

 

 

4,986

 

For the twelve months ended December 31, 2021

 

 

3,150

 

For the twelve months ended December 31, 2022

 

 

3,116

 

For the twelve months ended December 31, 2023

 

 

3,083

 

Thereafter

 

 

6,536

 

Total

 

$

22,125