Bally's CorpBALY
Bally's Corp Goodwill & Intangibles Disclosure
Goodwill
Goodwill consists of the excess of acquisition costs over the fair value of net assets acquired in business combinations.
Goodwill is not amortized, but is reviewed for impairment annually as of October 1st, or when events or changes in the
business environment indicate that the carrying value of the reporting unit may exceed its fair value, by comparing the fair
value of each reporting unit to its carrying value, including goodwill.
When assessing goodwill for impairment, first, qualitative factors are assessed to determine whether it is more likely than not
that the fair value of a reporting unit is less than its carrying value. Items that are considered in the qualitative assessment
include, but are not limited to, the following: macroeconomic conditions, industry and market conditions and overall financial
performance. If the results of the qualitative assessment indicate it is more likely than not that a reporting unit’s carrying value
exceeds its fair value, or if the Company elects to bypass the qualitative assessment, a quantitative goodwill test is performed.
Intangible Assets
The Company’s intangible assets primarily consist of customer relationships, developed technology, internally developed
software, gaming licenses, backlog and trade names.
For its finite-lived intangible assets, the Company establishes a useful life upon initial recognition based on the period over
which the asset is expected to contribute to the future cash flows of the Company and periodically evaluates the remaining
useful lives to determine whether events and circumstances warrant a revision to the remaining amortization period. Finite-lived
intangible assets are amortized over their remaining useful lives in a pattern in which the economic benefits of the intangible
asset are consumed, which is generally on a straight-line basis. The Company reviews the carrying amount of its finite-lived
intangible assets for possible impairment whenever events or changes in circumstances indicate that their carrying amount may
not be recoverable. Should events and circumstances indicate finite-lived intangible assets may not be recoverable, the
Company performs a test for recoverability whereby estimated undiscounted cash flows are compared to the carrying values of
the assets. Should the estimated undiscounted cash flows exceed the carrying value, no impairments are recorded. If the
undiscounted cash flows do not exceed the carrying values, an impairment is recorded based on the fair value of the asset.
Customer Relationships - The Company considers customer relationships to be finite-lived intangible assets, which are
amortized over their estimated useful lives, and are recognized as the result of a business combination.
Developed Technology - Developed technology relates to the design and development of sports betting and casino gaming
software and online gaming products acquired through business combinations. Developed technology is considered to be a
finite-lived intangible asset, which are amortized over their estimated useful lives.
Internally Developed Software - Software that is developed for internal use is accounted for pursuant to ASC 350-40,
Intangibles, Goodwill and Other - Internal-Use Software. Qualifying costs incurred to develop internal-use software are
capitalized when (i) the preliminary project stage is completed, (ii) management has authorized further funding for the
completion of the project and (iii) it is probable that the project will be completed and perform as intended. These capitalized
costs include compensation for employees who develop internal-use software and external costs related to development of
internal use software. Capitalization of these costs ceases once the project is substantially complete and the software is ready for
its intended purpose. Once placed into service, internally developed software is amortized on a straight-line basis over its
estimated useful life, which is generally five years. All other expenditures, including those incurred in order to maintain an
intangible asset’s current level of performance, are expensed as incurred.
Gaming Licenses - Gaming licenses obtained through business combinations are generally recorded at their fair values through
purchase accounting using the Greenfield Method under the income approach. Gaming licenses accounted for as asset
acquisitions are valued at cost. The Company considers its gaming licenses to be finite lived intangibles assets, amortized over
the individual license’s estimated useful life, which is determined by various factors such as the regulatory life of the license,
costs to renew, and whether the real property assets used to operate the license are subject to a long term lease.
Trade Names - Certain trade names are classified as finite-lived based on expectations of future use and are amortized over their
estimated useful lives. The Company also has certain trade names, which are considered to be indefinite lived based on future
expectations of continuing to brand its corporate name and certain properties and online gaming operations under the Bally’s
trade name indefinitely. Intangible assets not subject to amortization are reviewed for impairment annually as of October 1 and
between annual test dates whenever events or changes in circumstances may indicate that the carrying amount of the related
asset may exceed its fair value.
Backlog - Represents the estimated fair value of contracted customer orders and committed future sales that existed but were
not yet fulfilled as of the acquisition date. The valuation includes only revenues that are contractually agreed to and specifically
identifiable at the acquisition date and excludes assumptions about renewals, future sales beyond the contracted period, or
expected synergies.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 13, 2020 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.