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Note 9 - Segment Information | 9 Months Ended
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Sep. 30, 2022
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | NOTE 9. SEGMENT INFORMATION We have aggregated our properties in order to present three Reportable Segments: (i) Las Vegas Locals; (ii) Downtown Las Vegas; and (iii) Midwest & South. 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
Eastside Cannery Casino and Hotel (1) |  | Las Vegas, Nevada
Aliante Casino + Hotel + Spa |  | North Las Vegas, Nevada
Cannery Casino Hotel |  | North Las Vegas, Nevada
Jokers Wild |  | Henderson, Nevada
Downtown Las Vegas |  |
California Hotel and Casino |  | Las Vegas, Nevada
Fremont Hotel & Casino |  | Las Vegas, Nevada
Main Street Station Hotel and Casino |  | Las Vegas, Nevada
Midwest & South |  |
Par-A-Dice Casino (2) |  | East Peoria, Illinois
Belterra Casino Resort (4) |  | Florence, Indiana
Blue Chip Casino Hotel Spa |  | Michigan City, Indiana
Diamond Jo Casino |  | Dubuque, Iowa
Diamond Jo Worth |  | Northwood, Iowa
Kansas Star Casino |  | Mulvane, Kansas
Amelia Belle Casino |  | Amelia, Louisiana
Delta Downs Racetrack Hotel & Casino |  | Vinton, Louisiana
Evangeline Downs Racetrack & Casino |  | Opelousas, Louisiana
Sam's Town Shreveport |  | Shreveport, Louisiana
Treasure Chest Casino |  | Kenner, Louisiana
IP Casino Resort Spa |  | Biloxi, Mississippi
Sam's Town Hotel and Gambling Hall Tunica |  | Tunica, Mississippi
Ameristar Casino * Hotel Kansas City (4) |  | Kansas City, Missouri
Ameristar Casino * Resort * Spa St. Charles (4) |  | St. Charles, Missouri
Belterra Park (4) |  | Cincinnati, Ohio
Valley Forge Casino Resort (3) |  | King of Prussia, Pennsylvania
(1) Eastside Cannery remains closed since March 18, 2020 due to the current levels of demand in the market. (2) Par-A-Dice was temporarily closed on November 20, 2020 and subsequently reopened on January 16, 2021. (3) Valley Forge was temporarily closed on December 12, 2020 and subsequently reopened on January 4, 2021. (4) Property is subject to a master lease agreement with a real estate investment trust. Results of Operations - Total Reportable Segment Revenues and Adjusted EBITDAR We evaluate each property's profitability based on Property Adjusted EBITDAR, which represents each property's earnings before interest expense, income taxes, depreciation and amortization, deferred rent, share-based compensation expense, project development, preopening and writedown expenses, impairments of assets, other operating items, net, gain or loss on early extinguishments and modifications of debt, other items, net and master lease rent expense, as applicable. Total Reportable Segment Adjusted EBITDAR is the aggregate sum of the Property Adjusted EBITDAR for each of the properties included in our Las Vegas Locals, Downtown Las Vegas, and Midwest & South segments. Results for Downtown Las Vegas include the results of our Hawaii-based travel agency and captive insurance company as our Downtown Las Vegas properties cater to the Hawaiian market. Results for our Midwest & South segment include the following non-reportable segments: (i) Lattner, our Illinois distributed gaming operator; (ii) online gaming operations, which are in New Jersey and six of the nine states in the Midwest & South where we operate properties; and (iii) our management agreement with Wilton Rancheria. EBITDAR is a commonly used measure of performance in our industry that we believe, when considered with measures calculated in accordance with GAAP, facilitates comparisons between us and our competitors and provides our investors a more complete understanding of our operating results before the impact of investing transactions, financing transactions and income taxes. Management has historically adjusted EBITDAR when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide a full understanding of our core operating results and as a means to evaluate period-to-period results. The following tables set forth, for the periods indicated, departmental revenues for our Reportable Segments:
|  | Three Months Ended September 30, 2022 |
|  |  |  |  |  | Food & |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Gaming |  |  | Beverage |  |  | Room |  |  | Other |  |  | Total |
(In thousands) |  | Revenue |  |  | Revenue |  |  | Revenue |  |  | Revenue |  |  | Revenue |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Las Vegas Locals |  | $ | 172,263 |  |  | $ | 21,120 |  |  | $ | 19,982 |  |  | $ | 12,426 |  |  | $ | 225,791 |
Downtown Las Vegas |  |  | 31,872 |  |  |  | 9,583 |  |  |  | 5,552 |  |  |  | 2,500 |  |  |  | 49,507 |
Midwest & South |  |  | 463,840 |  |  |  | 37,089 |  |  |  | 21,138 |  |  |  | 79,898 |  |  |  | 601,965 |
Total Revenues |  | $ | 667,975 |  |  | $ | 67,792 |  |  | $ | 46,672 |  |  | $ | 94,824 |  |  | $ | 877,263 |
|  | Three Months Ended September 30, 2021 |
|  |  |  |  |  | Food & |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Gaming |  |  | Beverage |  |  | Room |  |  | Other |  |  | Total |
(In thousands) |  | Revenue |  |  | Revenue |  |  | Revenue |  |  | Revenue |  |  | Revenue |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Las Vegas Locals |  | $ | 179,441 |  |  | $ | 20,412 |  |  | $ | 20,176 |  |  | $ | 11,235 |  |  | $ | 231,264 |
Downtown Las Vegas |  |  | 28,132 |  |  |  | 7,343 |  |  |  | 4,000 |  |  |  | 2,662 |  |  |  | 42,137 |
Midwest & South |  |  | 466,654 |  |  |  | 33,346 |  |  |  | 20,141 |  |  |  | 49,518 |  |  |  | 569,659 |
Total Revenues |  | $ | 674,227 |  |  | $ | 61,101 |  |  | $ | 44,317 |  |  | $ | 63,415 |  |  | $ | 843,060 |
|  | Nine Months Ended September 30, 2022 |
|  |  |  |  |  | Food & |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Gaming |  |  | Beverage |  |  | Room |  |  | Other |  |  | Total |
(In thousands) |  | Revenue |  |  | Revenue |  |  | Revenue |  |  | Revenue |  |  | Revenue |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Las Vegas Locals |  | $ | 522,728 |  |  | $ | 64,257 |  |  | $ | 62,528 |  |  | $ | 40,301 |  |  | $ | 689,814 |
Downtown Las Vegas |  |  | 99,249 |  |  |  | 29,865 |  |  |  | 17,152 |  |  |  | 6,624 |  |  |  | 152,890 |
Midwest & South |  |  | 1,398,877 |  |  |  | 107,712 |  |  |  | 59,305 |  |  |  | 223,858 |  |  |  | 1,789,752 |
Total Revenues |  | $ | 2,020,854 |  |  | $ | 201,834 |  |  | $ | 138,985 |  |  | $ | 270,783 |  |  | $ | 2,632,456 |
|  | Nine Months Ended September 30, 2021 |
|  |  |  |  |  | Food & |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Gaming |  |  | Beverage |  |  | Room |  |  | Other |  |  | Total |
(In thousands) |  | Revenue |  |  | Revenue |  |  | Revenue |  |  | Revenue |  |  | Revenue |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Las Vegas Locals |  | $ | 516,174 |  |  | $ | 52,959 |  |  | $ | 49,344 |  |  | $ | 31,305 |  |  | $ | 649,782 |
Downtown Las Vegas |  |  | 70,168 |  |  |  | 17,657 |  |  |  | 9,269 |  |  |  | 5,256 |  |  |  | 102,350 |
Midwest & South |  |  | 1,433,273 |  |  |  | 92,025 |  |  |  | 50,771 |  |  |  | 161,768 |  |  |  | 1,737,837 |
Total Revenues |  | $ | 2,019,615 |  |  | $ | 162,641 |  |  | $ | 109,384 |  |  | $ | 198,329 |  |  | $ | 2,489,969 |
The following table reconciles, for the periods indicated, Total Reportable Segment Adjusted EBITDAR to net income, as reported in our accompanying condensed consolidated statements of operations:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
(In thousands) |  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Adjusted EBITDAR |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Las Vegas Locals |  | $ | 111,733 |  |  | $ | 125,360 |  |  | $ | 355,762 |  |  | $ | 349,572 |
Downtown Las Vegas |  |  | 17,704 |  |  |  | 13,222 |  |  |  | 58,216 |  |  |  | 31,083 |
Midwest & South |  |  | 230,195 |  |  |  | 222,058 |  |  |  | 682,725 |  |  |  | 700,199 |
Corporate expense |  |  | (21,934 | ) |  |  | (19,943 | ) |  |  | (66,296 | ) |  |  | (62,165 | )
Adjusted EBITDAR |  |  | 337,698 |  |  |  | 340,697 |  |  |  | 1,030,407 |  |  |  | 1,018,689 |
Other operating costs and expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deferred rent |  |  | 192 |  |  |  | 207 |  |  |  | 576 |  |  |  | 621 |
Master lease rent expense |  |  | 26,828 |  |  |  | 26,306 |  |  |  | 79,788 |  |  |  | 78,396 |
Depreciation and amortization |  |  | 64,956 |  |  |  | 67,586 |  |  |  | 194,191 |  |  |  | 199,332 |
Share-based compensation expense |  |  | 5,653 |  |  |  | 9,783 |  |  |  | 28,486 |  |  |  | 28,307 |
Project development, preopening and writedowns |  |  | 9,645 |  |  |  | 10,646 |  |  |  | 528 |  |  |  | 13,515 |
Impairment of assets |  |  | 5,575 |  |  |  | — |  |  |  | 5,575 |  |  |  | — |
Other operating items, net |  |  | (12,610 | ) |  |  | 3,023 |  |  |  | (12,324 | ) |  |  | 15,295 |
Total other operating costs and expenses |  |  | 100,239 |  |  |  | 117,551 |  |  |  | 296,820 |  |  |  | 335,466 |
Operating income |  |  | 237,459 |  |  |  | 223,146 |  |  |  | 733,587 |  |  |  | 683,223 |
Other expense (income) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | (2,073 | ) |  |  | (442 | ) |  |  | (2,976 | ) |  |  | (1,406 | )
Interest expense, net of amounts capitalized |  |  | 36,001 |  |  |  | 45,171 |  |  |  | 110,125 |  |  |  | 158,192 |
Loss on early extinguishments and modifications of debt |  |  | — |  |  |  | 42 |  |  |  | 19,809 |  |  |  | 65,517 |
Other, net |  |  | 170 |  |  |  | 119 |  |  |  | 3,667 |  |  |  | 2,288 |
Total other expense, net |  |  | 34,098 |  |  |  | 44,890 |  |  |  | 130,625 |  |  |  | 224,591 |
Income before income taxes |  |  | 203,361 |  |  |  | 178,256 |  |  |  | 602,962 |  |  |  | 458,632 |
Income tax provision |  |  | (46,359 | ) |  |  | (40,082 | ) |  |  | (136,269 | ) |  |  | (104,568 | )
Net income |  | $ | 157,002 |  |  | $ | 138,174 |  |  | $ | 466,693 |  |  | $ | 354,064 |
For purposes of this presentation, corporate expense excludes 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. Total Reportable Segment Assets The Company's assets by Reportable Segment consisted of the following amounts:
|  | September 30, |  |  | December 31, |
(In thousands) |  | 2022 |  |  | 2021 |
Assets |  |  |  |  |  |  |  |
Las Vegas Locals |  | $ | 1,604,202 |  |  | $ | 1,641,409 |
Downtown Las Vegas |  |  | 249,654 |  |  |  | 228,161 |
Midwest & South |  |  | 3,862,883 |  |  |  | 3,947,076 |
Total Reportable Segment Assets |  |  | 5,716,739 |  |  |  | 5,816,646 |
Corporate |  |  | 339,131 |  |  |  | 407,523 |
Total Assets |  | $ | 6,055,870 |  |  | $ | 6,224,169 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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