XML 37 R21.htm IDEA: XBRL DOCUMENT v3.22.4
Note 14 - Segment Information
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 14.    SEGMENT INFORMATION

We view each gaming entertainment property as an operating segment and have aggregated these operating segments in order to present three Reportable Segments: (i) Las Vegas Locals; (ii) Downtown Las Vegas; and (iii) Midwest & South. The table in Note 1, Summary of Significant Accounting Policies, lists the classification of each of our 28 gaming entertainment properties.

 

Results of Operations - Total Reportable Segment Revenues and Adjusted EBITDAR

We evaluate each of our property's profitability based upon 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 writedowns 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 gaming entertainment properties included in our Las Vegas Locals, Downtown Las Vegas, and Midwest & South segments. We aggregate non-reportable segments and other business activities with our Reportable Segments. Results for our Downtown Las Vegas segment include the results of our Hawaii-based travel agency and captive insurance company as our Downtown Las Vegas properties cater to the Hawaiian market. Our Midwest & South segment includes the results of the following non-reportable segments and business activities: (i) Lattner, our Illinois distributed gaming operator, whose operations were suspended on March 16, 2020, resumed on July 1, 2020, temporarily closed on November 20, 2020 and subsequently reopened on January 16, 2021; (ii) online gaming operations, which includes the operations of Pala Interactive, the online gaming technology company we acquired on November 1, 2022, and through our partnership with FanDuel Group and market access agreements with other operators, includes online operations in New Jersey, and as of December 31, 2022, six of the nine states in the Midwest & South segment where we operate our gaming entertainment properties; and (iii) management fees from our management agreement with Wilton Rancheria.

 

The following tables set forth, for the periods indicated, departmental revenues for our Reportable Segments:

 

  

Year Ended December 31, 2022

     Food &             
  Gaming  Beverage  Room  Other  Total 

(In thousands)

 

Revenue

 

Revenue

 

Revenue

 

Revenue

 

Revenue

Revenues

                    

Las Vegas Locals

 $700,230 $88,219 $87,726 $54,555 $930,730

Downtown Las Vegas

 139,115 41,578 24,950 9,689 215,332

Midwest & South

 1,835,385 146,182 76,395 351,353 2,409,315

Total Revenues

 $2,674,730 $275,979 $189,071 $415,597 $3,555,377

 

  

Year Ended December 31, 2021

      Food &             
  Gaming  Beverage  Room  Other  Total 

(In thousands)

 

Revenue

 

Revenue

 

Revenue

 

Revenue

 

Revenue

Revenues

                    

Las Vegas Locals

 $695,635 $74,771 $71,586 $44,062 $886,054

Downtown Las Vegas

 105,539 28,149 15,042 7,076 155,806

Midwest & South

 1,904,349 127,125 67,552 228,924 2,327,950

Total Revenues

 $2,705,523 $230,045 $154,180 $280,062 $3,369,810

 

  

Year Ended December 31, 2020

      Food &             
  Gaming  Beverage  Room  Other  Total 

(In thousands)

 

Revenue

 

Revenue

 

Revenue

 

Revenue

 

Revenue

Revenues

                    

Las Vegas Locals

 $430,303 $59,564 $45,446 $26,676 $561,989

Downtown Las Vegas

 58,468 18,647 9,369 8,019 94,503

Midwest & South

 1,286,587 100,667 50,153 84,591 1,521,998

Total Revenues

 $1,775,358 $178,878 $104,968 $119,286 $2,178,490

 

The following table reconciles, for the periods indicated, Total Reportable Segment Adjusted EBITDAR to net income, as reported in our accompanying consolidated statements of operations:

 

  

Year Ended December 31,

(In thousands)

 

2022

 

2021

 

2020

Adjusted EBITDAR

            

Las Vegas Locals

 $481,643 $473,187 $198,744

Downtown Las Vegas

 86,049 51,300 1,075

Midwest & South

 911,541 926,955 480,446

Corporate expense

 (88,724) (85,457) (70,371)

Adjusted EBITDAR

 1,390,509 1,365,985 609,894
             

Other operating costs and expenses

            

Deferred rent

 768 828 888

Master lease rent expense

 106,616 104,702 101,907

Depreciation and amortization

 258,179 267,787 281,031

Share-based compensation expense

 34,066 37,773 9,202

Project development, preopening and writedowns

 (18,936) 31,815 (661)

Impairment of assets

 40,775 8,200 174,700

Other operating items, net

 (12,183) 14,776 28,564

Total other operating costs and expenses

 409,285 465,881 595,631

Operating income

 981,224 900,104 14,263

Other expense (income)

            

Interest income

 (21,530) (1,819) (1,900)

Interest expense, net of amounts capitalized

 151,249 199,442 230,484

Loss on early extinguishments and modifications of debt

 19,815 95,155 1,791

Other, net

 2,884 3,387 (45,098)

Total other expense, net

 152,418 296,165 185,277

Income before income taxes

 828,806 603,939 (171,014)

Income tax provision

 (189,429) (140,093) 36,314

Net income

 $639,377 $463,846 $(134,700)

 

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:

 

  

December 31,

 

December 31,

(In thousands)

 

2022

 

2021

Assets

        

Las Vegas Locals

 $1,613,553 $1,641,409

Downtown Las Vegas

 265,876 228,161

Midwest & South

 4,040,681 3,947,076

Total Reportable Segment Assets

 5,920,110 5,816,646

Corporate

 391,017 407,523

Total Assets

 $6,311,127 $6,224,169

 

Capital Expenditures

The Company's capital expenditures by Reportable Segment consisted of the following:

 

  

Year Ended December 31,

(In thousands)

 

2022

 

2021

 

2020

Capital Expenditures

            

Las Vegas Locals

 $37,339 $24,724 $23,936

Downtown Las Vegas

 52,423 36,954 15,150

Midwest & South

 114,041 90,994 68,933

Total Reportable Segment Capital Expenditures

 203,803 152,672 108,019

Corporate

 67,874 49,953 66,767

Total Capital Expenditures

 271,677 202,625 174,786

Change in Accrued Capital Expenditure Additions

 (2,522) (3,173) 244

Cash-Based Capital Expenditures

 $269,155 $199,452 $175,030

 

The Company utilizes the Corporate entities to centralize the development of major renovation and other capital development projects that are included as construction in progress. After the project is complete, the corporate entities transfer the projects to the segment subsidiaries.