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Note 14 - Segment Information | 12 Months Ended
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Dec. 31, 2023
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | NOTE 14. SEGMENT INFORMATION During the first quarter of 2023, the Company evaluated its reportable segments and changed them from three reportable segments consisting of: (i) Las Vegas Locals; (ii) Downtown Las Vegas; and (iii) Midwest & South, to the following four reportable segments: (i) Las Vegas Locals; (ii) Downtown Las Vegas; (iii) Midwest & South; and (iv) Online (collectively "Reportable Segments"). This change reflects the growth of the Company beyond its traditional wholly owned gaming entertainment properties and the increasing importance to the Company of other growth sources. The Online segment includes the operating results of our online gaming operations through collaborative arrangements with third parties throughout the United States and the operations from our recent acquisition of Boyd Interactive on November 1, 2022, and such operating results were previously included with the Midwest & South segment. To reconcile Reportable Segments information to the consolidated information, the Company has aggregated nonreportable operating segments into a Managed & Other category. The Managed & Other category includes management fees earned under our management contract with Wilton Rancheria for the management of Sky River Casino in northern California and the operating results of Lattner Entertainment Group Illinois, LLC, our Illinois distributed gaming operator. These nonreportable operating segments were previously aggregated with our Midwest & South segment. The table in Note 1, Summary of Significant Accounting Policies, lists the classification of each of our 28 gaming entertainment properties that were aggregated based on their similar economic characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate and their management and reporting structure. Results of Operations - Total Reportable Segment Revenues and Adjusted EBITDAR We evaluate profitability based on Adjusted EBITDAR, which represents 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 Adjusted EBITDAR for each of the properties included in our Las Vegas Locals, Downtown Las Vegas and Midwest & South segments and Adjusted EBITDAR related to the online operations in our Online segment. 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. 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 and our Managed & Other category to reconcile to total revenues:
|  | Year Ended December 31, 2023 |
|  |  |  |  |  | Food & |  |  |  |  |  |  |  |  |  |  | Management |  |  |  |  |  |  |  |  |
|  | Gaming |  |  | Beverage |  |  | Room |  |  | Online |  |  | Fee |  |  | Other |  |  | Total |
(In thousands) |  | Revenue |  |  | Revenue |  |  | Revenue |  |  | Revenue |  |  | Revenue |  |  | Revenue |  |  | Revenue |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Las Vegas Locals |  | $ | 684,661 |  |  | $ | 90,182 |  |  | $ | 96,157 |  |  | $ | — |  |  | $ | — |  |  | $ | 57,118 |  |  | $ | 928,118 |
Downtown Las Vegas |  |  | 143,899 |  |  |  | 42,252 |  |  |  | 24,986 |  |  |  | — |  |  |  | — |  |  |  | 11,270 |  |  |  | 222,407 |
Midwest & South |  |  | 1,741,068 |  |  |  | 155,983 |  |  |  | 77,974 |  |  |  | — |  |  |  | — |  |  |  | 66,920 |  |  |  | 2,041,945 |
Online |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 422,211 |  |  |  | — |  |  |  | — |  |  |  | 422,211 |
Managed & Other |  |  | 43,660 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 76,921 |  |  |  | 3,230 |  |  |  | 123,811 |
Total Revenues |  | $ | 2,613,288 |  |  | $ | 288,417 |  |  | $ | 199,117 |  |  | $ | 422,211 |  |  | $ | 76,921 |  |  | $ | 138,538 |  |  | $ | 3,738,492 |
|  | Year Ended December 31, 2022 (1) |
|  |  |  |  |  | Food & |  |  |  |  |  |  |  |  |  |  | Management |  |  |  |  |  |  |  |  |
|  | Gaming |  |  | Beverage |  |  | Room |  |  | Online |  |  | Fee |  |  | Other |  |  | Total |
(In thousands) |  | Revenue |  |  | Revenue |  |  | 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 |  |  | 1,788,494 |  |  |  | 146,182 |  |  |  | 76,395 |  |  |  | — |  |  |  | — |  |  |  | 64,995 |  |  |  | 2,076,066 |
Online |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 253,898 |  |  |  | — |  |  |  | — |  |  |  | 253,898 |
Managed & Other |  |  | 46,891 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 26,905 |  |  |  | 5,555 |  |  |  | 79,351 |
Total Revenues |  | $ | 2,674,730 |  |  | $ | 275,979 |  |  | $ | 189,071 |  |  | $ | 253,898 |  |  | $ | 26,905 |  |  | $ | 134,794 |  |  | $ | 3,555,377 |
|  | Year Ended December 31, 2021 (1) |
|  |  |  |  |  | Food & |  |  |  |  |  |  |  |  |  |  | Management |  |  |  |  |  |  |  |  |
|  | Gaming |  |  | Beverage |  |  | Room |  |  | Online |  |  | Fee |  |  | Other |  |  | Total |
(In thousands) |  | Revenue |  |  | Revenue |  |  | 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 |  |  | 1,855,279 |  |  |  | 127,125 |  |  |  | 67,552 |  |  |  | — |  |  |  | — |  |  |  | 55,821 |  |  |  | 2,105,777 |
Online |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 172,518 |  |  |  | — |  |  |  | — |  |  |  | 172,518 |
Managed & Other |  |  | 49,070 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 585 |  |  |  | 49,655 |
Total Revenues |  | $ | 2,705,523 |  |  | $ | 230,045 |  |  | $ | 154,180 |  |  | $ | 172,518 |  |  | $ | — |  |  | $ | 107,544 |  |  | $ | 3,369,810 |
(1) Revenues for the years ended December 31, 2022 and 2021 have been recast to reflect the breakout of online revenue and management fee revenue and the segment changes made during the first quarter of 2023. The following table reconciles, for the periods indicated, our Reportable Segments and our Managed & Other category Adjusted EBITDAR to net income, as reported in our accompanying consolidated statements of operations:
|  | Year Ended December 31, |
(In thousands) |  | 2023 |  |  | 2022 (1) |  |  | 2021 (1) |
Adjusted EBITDAR |  |  |  |  |  |  |  |  |  |  |  |
Las Vegas Locals |  | $ | 470,971 |  |  | $ | 481,643 |  |  | $ | 473,187 |
Downtown Las Vegas |  |  | 85,507 |  |  |  | 86,049 |  |  |  | 51,300 |
Midwest & South |  |  | 781,673 |  |  |  | 830,782 |  |  |  | 892,090 |
Online |  |  | 62,337 |  |  |  | 39,778 |  |  |  | 23,583 |
Managed & Other |  |  | 84,478 |  |  |  | 40,981 |  |  |  | 11,282 |
Corporate expense |  |  | (90,175 | ) |  |  | (88,724 | ) |  |  | (85,457 | )
Adjusted EBITDAR |  |  | 1,394,791 |  |  |  | 1,390,509 |  |  |  | 1,365,985 |
Other operating costs and expenses |  |  |  |  |  |  |  |  |  |  |  |
Deferred rent |  |  | 708 |  |  |  | 768 |  |  |  | 828 |
Master lease rent expense |  |  | 108,398 |  |  |  | 106,616 |  |  |  | 104,702 |
Depreciation and amortization |  |  | 256,780 |  |  |  | 258,179 |  |  |  | 267,787 |
Share-based compensation expense |  |  | 32,379 |  |  |  | 34,066 |  |  |  | 37,773 |
Project development, preopening and writedowns |  |  | (8,935 | ) |  |  | (18,936 | ) |  |  | 31,815 |
Impairment of assets |  |  | 107,837 |  |  |  | 40,775 |  |  |  | 8,200 |
Other operating items, net |  |  | (4,207 | ) |  |  | (12,183 | ) |  |  | 14,776 |
Total other operating costs and expenses |  |  | 492,960 |  |  |  | 409,285 |  |  |  | 465,881 |
Operating income |  |  | 901,831 |  |  |  | 981,224 |  |  |  | 900,104 |
Other expense (income) |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | (23,886 | ) |  |  | (21,530 | ) |  |  | (1,819 | )
Interest expense, net of amounts capitalized |  |  | 171,247 |  |  |  | 151,249 |  |  |  | 199,442 |
Loss on early extinguishments and modifications of debt |  |  | — |  |  |  | 19,815 |  |  |  | 95,155 |
Other, net |  |  | 1,563 |  |  |  | 2,884 |  |  |  | 3,387 |
Total other expense, net |  |  | 148,924 |  |  |  | 152,418 |  |  |  | 296,165 |
Income before income taxes |  |  | 752,907 |  |  |  | 828,806 |  |  |  | 603,939 |
Income tax provision |  |  | (132,884 | ) |  |  | (189,429 | ) |  |  | (140,093 | )
Net income |  | $ | 620,023 |  |  | $ | 639,377 |  |  | $ | 463,846 |
(1) Adjusted EBITDAR for the years ended December 31, 2022 and 2021 has been recast to reflect the segment changes made during the first quarter of 2023. For purposes of this presentation, corporate expense excludes its portion of share-based compensation expense. Corporate expense represents unallocated payroll, professional fees, rent, aircraft expenses and various other expenses not directly related to our casino, hotel and online operations. Total Reportable Segment Assets The Company's assets by Reportable Segment and Managed & Other category consisted of the following amounts with assets as of December 31, 2022 recast to reflect the segment changes made during the first quarter of 2023:
|  | December 31, |  |  | December 31, |
(In thousands) |  | 2023 |  |  | 2022 |
Assets |  |  |  |  |  |  |  |
Las Vegas Locals |  | $ | 1,634,732 |  |  | $ | 1,613,553 |
Downtown Las Vegas |  |  | 295,494 |  |  |  | 265,876 |
Midwest & South |  |  | 3,805,301 |  |  |  | 3,745,476 |
Online |  |  | 155,356 |  |  |  | 226,800 |
Managed & Other |  |  | 124,161 |  |  |  | 207,962 |
Corporate |  |  | 258,082 |  |  |  | 251,460 |
Total Assets |  | $ | 6,273,126 |  |  | $ | 6,311,127 |
Capital Expenditures The Company's capital expenditures by Reportable Segment and Managed & Other category consisted of the following with capital expenditures for the years ended December 31, 2022 and 2021 recast to reflect the segment changes made in the first quarter of 2023:
|  | Year Ended December 31, |
(In thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Capital Expenditures |  |  |  |  |  |  |  |  |  |  |  |
Las Vegas Locals |  | $ | 82,918 |  |  | $ | 37,339 |  |  | $ | 24,724 |
Downtown Las Vegas |  |  | 42,233 |  |  |  | 52,423 |  |  |  | 36,954 |
Midwest & South |  |  | 200,577 |  |  |  | 109,475 |  |  |  | 88,668 |
Online |  |  | 224 |  |  |  | 462 |  |  |  | — |
Managed & Other |  |  | 5,001 |  |  |  | 4,104 |  |  |  | 2,326 |
Corporate |  |  | 55,776 |  |  |  | 67,874 |  |  |  | 49,953 |
Total Capital Expenditures |  |  | 386,729 |  |  |  | 271,677 |  |  |  | 202,625 |
Change in Accrued Capital Expenditure Additions |  |  | (12,779 | ) |  |  | (2,522 | ) |  |  | (3,173 | )
Cash-Based Capital Expenditures |  | $ | 373,950 |  |  | $ | 269,155 |  |  | $ | 199,452 |
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.

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