Drive Shack Inc. Current report filing

Current report filing

GOODWILL AND INTANGIBLES

GOODWILL AND INTANGIBLES

12 Months Ended

Dec. 31, 2013

12. GOODWILL AND INTANGIBLES

The following table summarizes Newcastle’s intangibles from continuing operations related to its senior housing real estate and golf business:


	December 31, 2013							December 31, 2012
	Gross							Gross
	Carrying		Accumulated			Net Carrying		Carrying		Accumulated			Net Carrying
	Amount		Amortization			Value		Amount		Amortization			Value
Amortizable intangible assets:
In-place resident lease intangibles	$	112,267	$	(21,902	)	$	90,365	$	22,711	$	(4,205	)	$	18,506
Non-compete intangibles		1,600		(223	)		1,377		600		(20	)		580
Land lease intangibles		3,498		(1	)		3,497		—		—			—
PILOT intangible		3,700		(124	)		3,576		—		—			—
Other intangibles		2,046		(2	)		2,044		—		—			—
Total Senior Housing		123,111		(22,252	)		100,859		23,311		(4,225	)		19,086
Trade name		700		—			700		—		—			—
Leasehold intangibles		52,066		—			52,066		—		—			—
Management contracts		39,000		—			39,000		—		—			—
Internally-developed software		800		—			800		—		—			—
Membership base		5,400		—			5,400		—		—			—
Total Golf		97,966		—			97,966		—		—			—
Total	$	221,077	$	(22,252	)	$	198,825	$	23,311	$	(4,225	)	$	19,086
Nonamortizable intangible assets:
Liquor license-Golf		900		—			900
Total	$	221,977	$	(22,252	)	$	199,725

The unamortized balance of intangible assets from continuing operations at December 31, 2013 are expected to be charged to amortization expense as follows:


2014	$	55,143
2015		42,830
2016		26,970
2017		10,012
2018		9,251
Thereafter		54,619
	$	198,825

The following table summarizes Newcastle’s goodwill and intangibles from discontinued operations related to its media business:


	December 31, 2013							December 31, 2012
	Gross							Gross
	Carrying		Accumulated			Net Carrying		Carrying		Accumulated		Net Carrying
	Amount		Amortization			Value		Amount		Amortization		Value
Amortizable intangible assets:
Advertiser relationships		58,269		(359	)		57,910		—		—		—
Customer relationships		5,666		(35	)		5,631		—		—		—
Subscriber relationships		35,966		(221	)		35,745		—		—		—
Trade name		268		(3	)		265		—		—		—
Total	$	100,169	$	(618	)	$	99,551	$		$		$
Nonamortizable intangible assets:
Mastheads-Media		45,849		—			45,849
Goodwill		126,686		—			126,686
Total Media	$	272,704	$	(618	)	$	272,086

The changes in the carrying amount of goodwill, included in discontinued operations, for the year ended December 31, 2013 are as follows:


Gross balance at January 1, 2013	$	—
Business combination		126,686
Net balance at December 31, 2013	$	126,686

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details