v2.3.0.15
Segment Information
9 Months Ended
Sep. 30, 2011
Segment Information [Abstract] 
Segment Reporting Disclosure
SEGMENT INFORMATION

We have aggregated certain of our properties in order to present four Reportable Segments: (i) Las Vegas Locals; (ii) Downtown Las Vegas; (iii) Midwest and South; and (iv) Atlantic City. The table below lists the classification of each of our properties.
Las Vegas Locals
 
Gold Coast Hotel and Casino
Las Vegas, Nevada
The Orleans Hotel and Casino
Las Vegas, Nevada
Sam's Town Hotel and Gambling Hall
Las Vegas, Nevada
Suncoast Hotel and Casino
Las Vegas, Nevada
Eldorado Casino
Henderson, Nevada
Jokers Wild Casino
Henderson, Nevada
 
 
Downtown Las Vegas
 
California Hotel and Casino
Las Vegas, Nevada
Fremont Hotel and Casino
Las Vegas, Nevada
Main Street Station Casino, Brewery and Hotel
Las Vegas, Nevada
 
 
Midwest and South        
 
Sam's Town Hotel and Gambling Hall
Tunica, Mississippi
Par-A-Dice Hotel Casino
East Peoria, Illinois
Blue Chip Casino, Hotel & Spa
Michigan City, Indiana
Treasure Chest Casino
Kenner, Louisiana
Delta Downs Racetrack Casino & Hotel
Vinton, Louisiana
Sam's Town Hotel and Casino
Shreveport, Louisiana
 
 
Atlantic City                    
 
Borgata Hotel Casino & Spa
Atlantic City, New Jersey

Results of Operations - Adjusted EBITDA
We determine each of our wholly-owned properties' profitability based upon Property EBITDA, which represents each property's earnings before interest expense, income taxes, depreciation and amortization, preopening expenses, write-downs and other charges, share-based compensation expense, deferred rent, change in value of derivative instruments, and gain/loss on early retirements of debt, as applicable. Reportable Segment Adjusted EBITDA is the aggregate sum of the Property EBITDA for each of the properties included in our Las Vegas Locals, Downtown Las Vegas, and Midwest and South segments, and also includes our share of Borgata's operating income before net amortization, preopening and other items.

Results for Downtown Las Vegas include the results of our travel agency and captive insurance company. Effective April 1, 2008, we reclassified the reporting of our Midwest and South segment to exclude the results of Dania Jai-Alai, our pari-mutuel jai-alai facility, since it does not share similar economic characteristics with our other Midwest and South operations; therefore, the results of Dania Jai-Alai are included as part of the “Other” category on the accompanying table.

We reclassify the reporting of corporate expense on the accompanying table in order to exclude it from our subtotal for Reportable Segment Adjusted EBITDA and include it as part of total other operating costs and expenses. Furthermore, corporate expense is now presented to include its portion of share-based compensation expense. Corporate expense represents unallocated payroll, professional fees, aircraft expenses and various other expenses not directly related to our casino and hotel operations, in addition to the corporate portion of share-based compensation expense. Other operating costs and expenses include Property EBITDA from Dania Jai-Alai, deferred rent, and share-based compensation expense charged to our Reportable Segments. Interest expense is net of interest income and amounts capitalized.

The following table sets forth, for the periods indicated, certain operating data for our Reportable Segments, and reconciles Adjusted EBITDA to operating income (loss), as reported in our accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2011 and 2010.
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2011
 
2010
 
2011
 
2010
 
(In thousands)
Net Revenues
 
 
 
 
 
 
 
Las Vegas Locals
$
145,915

 
$
145,593

 
$
452,270

 
$
455,243

Downtown Las Vegas
53,327

 
51,898

 
165,578

 
161,088

Midwest and South
187,906

 
188,695

 
553,787

 
556,221

Atlantic City
202,018

 
207,687

 
553,864

 
411,355

Reportable Segment Net Revenues
589,166

 
593,873

 
1,725,499

 
1,583,907

Other
1,049

 
1,505

 
4,065

 
5,052

Net revenues
$
590,215

 
$
595,378

 
$
1,729,564

 
$
1,588,959

 
 
 
 
 
 
 
 
Reportable Segment Adjusted EBITDA
 
 
 
 
 
 
 
Las Vegas Locals
$
30,793

 
$
26,116

 
$
109,006

 
$
103,339

Downtown Las Vegas
6,005

 
5,679

 
24,375

 
23,361

Midwest and South
44,524

 
38,407

 
128,011

 
113,276

Atlantic City
50,287

 
54,319

 
120,626

 
102,182

Our share of Borgata's operating income
 
 
 
 
 
 
8,180

Reportable Segment Adjusted EBITDA
$
131,609

 
$
124,521

 
$
382,018

 
$
350,338

 
 
 
 
 
 
 
 
Other operating costs and expenses
 
 
 
 
 
 
 
Depreciation and amortization
$
46,034

 
$
52,451

 
$
145,106

 
$
147,905

Corporate expense
11,025

 
11,021

 
36,569

 
36,636

Preopening expenses
1,720

 
2,684

 
5,292

 
4,990

Our share of Borgata's other items and write-downs, net
—

 
—

 
—

 
34

Write-downs and other items, net
2,300

 
1,340

 
9,269

 
4,932

Other
2,366

 
2,542

 
7,524

 
7,652

Total other operating costs and expenses
63,445

 
70,038

 
203,760

 
202,149

Operating income
$
68,164

 
$
54,483

 
$
178,258

 
$
148,189


Operating Income from Borgata
The following table reconciles our operating income from Borgata, as reported in our condensed consolidated statements of operations, to the Atlantic City Reportable Segment Adjusted EBITDA, as reported above:
 
Three Months Ended 
 
Nine Months Ended 
 
September 30,
 
September 30,
 
2011
 
2010
 
2011
 
2010
 
In thousands
Operating income from Borgata
$
—

 
$
—

 
$
—

 
$
8,146

Our share of Borgata's write-downs and other items, net
—

 
—

 
—

 
34

Our share of Borgata's operating income before net amortization, preopening and other items
$
—

 
$
—

 
$
—

 
$
8,180


As discussed above, Borgata's results of operations for the three and nine months ended September 30, 2011 and for the period from July 1, 2010 through September 30, 2010 and March 24 through September 30, 2010 are included in our condensed consolidated statements of operations for the three and nine months ended September 30, 2011 and 2010, respectively.

Total Assets
The Company's total assets, by Reportable Segment, consisted of the following amounts at September 30, 2011 and December 31, 2010:
 
September 30,
2011
 
December 31, 2010
 
(In thousands)
Assets
 
 
 
Las Vegas Locals
$
1,250,101

 
$
1,284,160

Downtown Las Vegas
131,832

 
136,868

Midwest and South
1,088,407

 
1,117,959

Atlantic City
1,421,326

 
1,433,265

Total Reportable Segment assets
3,891,666

 
3,972,252

Corporate
1,488,640

 
1,428,763

Other
258,516

 
288,274

Total assets
$
5,638,822

 
$
5,689,289