GOODWILL AND OTHER INTANGIBLES
|12 Months Ended|
Dec. 31, 2022
|GOODWILL AND OTHER INTANGIBLES|
|GOODWILL AND OTHER INTANGIBLES||
4. GOODWILL AND OTHER INTANGIBLES
The following table sets forth changes in the carrying value of goodwill by segment:
Other Intangible Assets:
The following tables set forth changes in the carrying value of intangible assets other than goodwill:
There were no impairments to goodwill or other intangible assets for the two years ended December 31, 2022.
Land Lease Acquisition Costs and Water Rights. Silver Slipper recognized intangible assets related to its lease agreement with Cure Land Company, LLC (see Note 7). The lease was valued at $970,000 and represents the excess fair value of the land over the estimated net present value of the land lease payments, and the water rights value of $450,000 represents the fair value of the water rights based upon market rates in Hancock County, Mississippi.
Gaming Licenses. Gaming licenses primarily represent the value of the license to conduct gaming in certain jurisdictions, which are subject to highly extensive regulatory oversight and, in some cases, a limitation on the number of licenses available for issuance. The values of gaming licenses were primarily estimated using a multi-period excess earning method of the income approach, which examines the economic returns contributed by the identified tangible and intangible assets of a company, and then isolates the excess return, which is attributable to the asset being valued, based on cash flows attributable to the gaming license.
Trade Names. Trade names represents the value of the Bronco Billy’s casino name, which has existed for approximately 31 years and provides brand recognition. The value was estimated using a relief-from-royalty method of the income approach based upon comparable trade name royalty agreements.
Current and Future Amortization. Intangible asset amortization expense was approximately $31,000 and $70,000 for the years ended December 31, 2022 and 2021, respectively.
Future amortization expense for intangible assets is as follows:
The entire disclosure for goodwill and intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef