Property and Equipment

9 Months Ended

Sep. 30, 2015

6. Property and Equipment

Property and equipment, net, consists of the following:

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

Property and equipment - non-leased
Land and improvements	$	297,580		$	42,350
Building and improvements	398,207			173,043
Furniture, fixtures, and equipment	1,308,349			1,213,143
Leasehold improvements	126,442			120,984
Construction in progress	11,699			69,367

	2,142,277			1,618,887
Less accumulated depreciation	(1,082,611		)	(988,490		)

	1,059,666			630,397


Property and equipment - leased
Land and improvements	382,536			382,702
Building and improvements	2,219,018			2,219,018

	2,601,554			2,601,720
Less accumulated depreciation	(631,845		)	(562,385		)

	1,969,709			2,039,335

Property and equipment, net	$	3,029,375		$	2,669,732

Property and equipment, net increased by $359.6 million for the nine months ended September 30, 2015 primarily due to the acquisitions of Tropicana Las Vegas Hotel and Casino and Prairie State Gaming on August 25, 2015 and September 1, 2015, respectively 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 nine months ended September 30, 2015.

Depreciation expense totaled $66.0 million and $191.7 million for the three and nine months ended September 30, 2015, of which $23.1 million and $69.5 million related to assets under the Master Lease, as compared to $61.4 million and $190.9 million for the three and nine months ended September 30, 2014, of which $22.2 million and $66.7 million related to assets under the Master Lease, respectively. Interest capitalized in connection with major construction projects was $0 and $1.8 million for the three and nine months ended September 30, 2015, as compared to $0.3 million and $0.5 million for the three and nine months ended September 30, 2014, respectively.