Company: ACEL
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001698991-25-000023
Chunk: 15

Company: Accel Entertainment, Inc.
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 1
Chunk 15
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 the customer contracts that are subject to a clawback provision if the customer cancels the contract prior to completion. The payments subject to a clawback were $1.3 million and $1.2 million as of March 31, 2025 and December 31, 2024, respectively.Route and customer acquisition costs consisted of the following as of March 31, 2025 and December 31, 2024 (in thousands):March 31,2025December 31,2024Cost$39,786 $39,204 Accumulated amortization(16,208)(15,946)Route and customer acquisition costs, net$23,578 $23,258 

Amortization expense of route and customer acquisition costs was $0.6 million and $0.5 million for the three months ended March 31, 2025 and 2024, respectively. 

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 March 31, 2025 and December 31, 2024 (in thousands):March 31,2025December 31,2024Cost$330,958 $330,903 Accumulated amortization(133,419)(128,285)Location contracts acquired, net$197,539 $202,618 

Amortization expense of location contracts acquired was $5.1 million and $4.3 million for the three months ended March 31, 2025 and 2024, respectively. 

Note 8. Goodwill and Other Intangible Assets

The Company had goodwill of $116.3 million as of both March 31, 2025 and December 31, 2024, respectively, of which $38.2 million was deductible for tax purposes as of March 31, 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 are amortized over their estimated 7 to 20-year useful lives.

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

Other intangible assets consist of the following as of March 31, 2025 and December 31, 2024 (in thousands):March 31,