Property and Equipment

6 Months Ended

Jun. 30, 2015

5. Property and Equipment

Property and equipment, net, consists of the following:

	June 30,			December 31,
	2015			2014
	(in thousands)

Land and improvements	$	56,702		$	42,350
Building and improvements	294,187			173,043
Furniture, fixtures, and equipment	1,259,639			1,213,143
Leasehold improvements	248,447			246,047
Construction in progress	8,820			69,367

Total property and equipment	1,867,795			1,743,950
Less accumulated depreciation	(1,032,333		)	(974,805		)

Property and equipment, net	$	835,462		$	769,145

Property and equipment, net increased by $66.3 million for the six months ended June 30, 2015 primarily due to the City of Lawrenceburg’s conveyance of a hotel and event center near Hollywood Casino Lawrenceburg (see Note 6 for further detail) and construction costs for the development of Plainridge Park Casino as well as normal capital maintenance expenditures, all of which were partially offset by depreciation expense for the six months ended June 30, 2015.

Depreciation expense totaled $41.8 million and $84.7 million for the three and six months ended June 30, 2015, as compared to $42.0 million and $84.0 million for the three and six months ended June 30, 2014, respectively. Interest capitalized in connection with major construction projects was $1.2 million and $1.8 million for the three and six months ended June 30, 2015, as compared to $0.1 million and $0.2 million for the three and six months ended June 30, 2014, respectively.