Company: ACEL
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001698991-25-000011
Chunk: 65

Company: Accel Entertainment, Inc.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 16
Chunk 65
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 goodwill is less than its carrying amount. In performing this assessment, the Company considered such factors as its historical performance, its growth opportunities in existing markets; new markets and new products in determining whether the goodwill was impaired. The Company also referenced its forecasts of revenue, operating income, and capital expenditures and concluded it is more likely than not, that the carrying value of its goodwill was not impaired as of October 1, 2024.Other intangible assetsOther intangible assets, net consist of definite-lived trade names, customer relationships, software applications and indefinite-lived operating licenses. The Company determines the fair value of trade name assets acquired in acquisitions using a relief from royalty valuation method which requires assumptions such as projected revenue and a royalty rate. Customer relationships, software applications and trade names are amortized over their estimated 7 to 20-year useful lives. Operating licenses were assigned an indefinite useful life based on the Company's expected use of the licenses and determined that no legal, regulatory, contractual, competitive, economic, or other factors limit the useful life of the these operating licenses.Other intangible assets, net consist of the following as of December 31 (in thousands):20242023Amortization PeriodGross Carrying AmountAccumulated Amortization (1)Net Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying AmountCustomer Relationships7 years$6,800 $(3,325)$3,475 $6,800 $(1,538)$5,262 Software Applications8 years7,800 (2,519)5,281 7,800 (1,544)6,256 Trade Names20 years11,700 (1,265)10,435 9,800 (776)9,024 Operating licensesIndefinite34,749 N/A34,749 2,810 N/A2,810 $61,049 $(7,109)$53,940 $27,210 $(3,858)$23,352 (1)Included in accumulated amortization is an impairment change of $0.8 million on the customer relationships intangible related to the surrender of the Company’s manufacturing license in Louisiana on October 31, 2024 due to the acquisition of Toucan Gaming. The impairment charge is recorded within Other expenses, net on consolidated statement of operations and  comprehensive income.Amortization expense of other intangible assets, net was $2.4 million, $2.4 million and $