Company: ACEL
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001698991-25-000051
Chunk: 19

Company: Accel Entertainment, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 1
Chunk 19
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1.7 million for the three and nine months ended September 30, 2024, respectively.

11

Table of ContentsAccel Entertainment, Inc. and SubsidiariesNotes to Condensed Consolidated Financial Statements — (Continued)

Note 7. Location Contracts Acquired

Location contract assets acquired in business acquisitions are recorded at fair value based on an income approach. Location contracts acquired consisted of the following as of September 30, 2025 and December 31, 2024 (in thousands):September 30,2025December 31,2024Cost$331,195 $330,903 Accumulated amortization(143,554)(128,285)Location contracts acquired, net$187,641 $202,618 Amortization expense of location contracts acquired was $5.1 million and $15.2 million for the three and nine months ended September 30, 2025, respectively. In comparison, amortization expense for location contracts acquired was $4.6 million and $13.3 million for the three and nine months ended September 30, 2024, respectively.

Note 8. Goodwill and Other Intangible Assets

The Company had goodwill of $114.2 million and $116.3 million as of September 30, 2025 and December 31, 2024, respectively, of which $36.2 million was deductible for tax purposes as of September 30, 2025. In July 2025, there was a reduction in goodwill related to the acquisition of Fairmount Park - Casino & Racing (“Fairmount”) due to the cancellation of 173,262 previously-issued shares that were being held in escrow due to revisions to the closing statement. The cancellation of these shares resulted in a $2.0 million reduction in the fair value of the consideration paid to acquire Fairmount. The following is a roll forward of the Company's goodwill (in thousands):Goodwill balance as of January 1, 2025$116,252 Cancellation of shares previously issued for Fairmount acquisition(2,007)Goodwill balance as of September 30, 2025$114,245 Goodwill is tested for impairment annually or when triggering events occur. There were no indicators of impairment of goodwill as of September 30, 2025.Other intangible assetsOther intangible assets, net consist of definite-lived trade names, customer relationships, software applications and indefinite-lived operating licenses. Other intangible assets