XML 21 R10.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Restatement | 3 Months Ended
--- | ---
Mar. 31, 2015
Restatement |
Restatement | 2.Restatement The restatement of the Company’s financial statements primarily results from the Company’s accounting for its November 1, 2013 distribution of real estate assets to Gaming and Leisure Properties, Inc. (GLPI) under the Master Lease Agreement (the “Master Lease”), which was previously recognized as a sale-leaseback. Upon further consideration, the Company did not meet all of the requirements for sale-leaseback accounting under Accounting Standards Codification (“ASC”) 840, “Leases”, and therefore the transaction should be accounted for as a financing obligation rather than a distribution of assets followed by an operating lease. Specifically, the lease contains provisions that would indicate that the Company has prohibited forms of continuing involvement in the leased property such that sale-leaseback accounting would not be permitted. As a result, the Company is precluded from derecognizing the real estate assets and is instead required to recognize a financing obligation for the minimum lease payments due under the Master Lease. The restated condensed consolidated balance sheets therefore include an adjustment to property and equipment, net for the carrying value of the real property of $2.02 billion and $2.04 billion at March 31, 2015 and December 31, 2014, respectively, and additional liabilities of $3.60 billion and $3.61 billion at March 31, 2015 and December 31, 2014, respectively, representing the present value of the future minimum lease payments due to GLPI under the Master Lease and the funded construction of certain leased real assets in development at the date of the Spin-Off. Consequently, the condensed restated consolidated statements of operations no longer report rent expense for the obligations under the Master Lease, but rather include interest expense associated with the financing obligation and depreciation expense related to the real estate assets. The lease payment amounts previously recorded as rent expense were $108.8 million and $104.3 million for the three months ended March 31, 2015 and 2014, respectively. The increases to interest expense and depreciation expense as a result of the correction of the accounting for the Master Lease are $96.0 million and $22.7 million, respectively, for the three months ended March 31, 2015, and $93.1 million and $22.3 million, respectively, for the three months ended March 31, 2014. This change in accounting treatment also resulted in adjustments to the carrying values of the Company’s reporting units as well as differences in the allocation of the GLPI rental obligation to the impacted reporting units, which altered each reporting unit’s fair value. As part of its restatement, the Company also identified certain other errors affecting the condensed consolidated financial statements as of March 31, 2015 and December 31, 2014:
| · |  | The Company had originally recorded goodwill and other intangible asset impairment charges of $312.5 million and $745.9 million at October 1, 2013, the date of its annual impairment test, and November 1, 2013 (the Spin-Off date), respectively, and impairment charges of $316.5 million at October 1, 2014. The Company corrected certain errors in its goodwill and indefinite-lived gaming license intangible asset impairment analyses which incorporated the adjustments to the carrying amounts and estimated fair values of the Company’s reporting units mentioned above as well as the impact of its deferred tax valuation allowance. This resulted in a decrease to the Company’s previously recognized impairment charges of $161.2 million and $334.1 million for the years ended December 31, 2014 and 2013, respectively, which along with the relocation fee accounting error described below, resulted in a significant increase to the Company’s goodwill and other intangible assets at both March 31, 2015 and December 31, 2014.
| · |  | During 2014, the Company incurred an aggregate liability of $150 million to the State of Ohio in return for the right to locate its racing operations from Toledo, Ohio to Dayton, Ohio (Hollywood Gaming at Dayton Raceway) and from Grove City, Ohio to Austintown, Ohio (Hollywood Gaming at Mahoning Valley). The Company originally accounted for these amounts as a cost of the real estate and was therefore including them in property and equipment, net and was amortizing them over the fifteen year base lease term of the Master Lease. The Company has now concluded that these costs should have been recognized as an additional cost incurred for obtaining the gaming licenses for these two properties and capitalized as other intangible assets that are not amortized, but are considered for impairment on an annual basis or more frequently if impairment indicators exist. This resulted in a decrease to depreciation expense of $2.7 million for the three months ended March 31, 2015.
| · |  | The Company corrected the classification of a corporate airplane lease that had previously been accounted for as an operating lease but upon review should have been accounted for as a capital lease. This resulted in an increase to net property and equipment of $6.5 million and $7.0 million at March 31, 2015 and December 31, 2014, respectively, as well as an increase to long term debt of $24.9 million at both March 31, 2015 and December 31, 2014, respectively. It also resulted in an increase to interest expense, with an offsetting decrease to general and administrative costs of $0.2 million for the three months ended March 31, 2015 and 2014 as well as an increase to depreciation expense of $0.5 million for the three months ended March 31, 2015 and 2014.
| · |  | The Company concluded that as a result of the failed spin-off-leaseback accounting treatment which resulted in a significant increase to our deferred tax assets, a valuation allowance should be recorded on the Company’s deferred tax assets given the significant negative evidence associated with being in a three year cumulative pre-tax loss position and the insufficient objectively verifiable positive evidence to support the realization of the Company’s deferred tax assets. This resulted in an increase to the Company’s income tax provision of $5.1 million and $0.2 million for the three months ended March 31, 2015 and 2014, respectively.
| · |  | The Company concluded that the Carlino exchange transaction should have been accounted for as a treasury stock transaction that is measured using the fair value of the exchanged instruments. See Note 3 in the Company’s Form 10-K/A for additional information.
| · |  | The Company reclassified a contingent earn-out liability from long-term debt to other non-current liabilities which totaled $19.5 million and $19.2 million at March 31, 2015 and December 31, 2014, respectively. Additionally, changes in the fair value of this liability which totaled $0.3 million for the three months ended March 31, 2015, were reclassified from interest expense to general and administrative expenses.
| · |  | The Company corrected the income tax provision and related income tax balances on the condensed consolidated balance sheet and condensed consolidated statements of cash flows for each of the previously identified errors.
| · |  | The Company corrected certain other errors that were not individually material to the condensed consolidated financial statements.
The condensed consolidated financial statements included in this Form 10-Q/A have been restated to reflect the adjustments described above. The following is a summary of the effect of the restatement on (i) the Company’s condensed consolidated balance sheets at March 31, 2015 and December 31, 2014 (ii) the Company’s condensed consolidated statements of operations for the three months ended March 31, 2015 and 2014 and (iii) the Company’s condensed consolidated statements of cash flows for the three months ended March 31, 2015 and 2014. The Company did not present a summary of the effect of the restatement on the condensed consolidated statement of changes in shareholders’ equity (deficit) for any of the above referenced periods because the impact to retained earnings on the condensed consolidated statement of changes in shareholders’ equity (deficit) is reflected below in the balance sheet. The Company did not present a summary of the effect of the restatement on the condensed consolidated statement of comprehensive income (loss) for any of the above referenced periods because the impact to net income is reflected below in the restated condensed consolidated statement of income and the r estatement adjustments did not a ffect any other component of comprehensive income (loss). Penn National Gaming, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (in thousands, except share and per share data) The following table presents the condensed consolidated balance sheet as previously reported, restatement adjustments and the condensed consolidated balance sheet as restated at March 31, 2015:
|  | As Previously |  | Restatement |  |  |
|  | Reported |  | Adjustments |  | As Restated |
Assets |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 237,729 |  | $ | — |  | $ | 237,729 |
Receivables, net of allowance for doubtful accounts of $2,093 |  | 40,918 |  | — |  | 40,918 |
Prepaid expenses |  | 82,381 |  | 4,039 |  | 86,420 |
Deferred income taxes |  | 45,302 |  | (11,395 | ) | 33,907 |
Other current assets |  | 10,913 |  | — |  | 10,913 |
Total current assets |  | 417,243 |  | (7,356 | ) | 409,887 |
Property and equipment, net |  | 802,520 |  | 1,880,141 |  | 2,682,661 |
Other assets |  |  |  |  |  |  |
Investment in and advances to unconsolidated affiliates |  | 175,574 |  |  |  | 175,574 |
Goodwill |  | 276,173 |  | 598,011 |  | 874,184 |
Other intangible assets, net |  | 370,602 |  | 47,503 |  | 418,105 |
Deferred income taxes |  | 74,492 |  | (74,492 | ) | — |
Advances to the Jamul Tribe |  | 86,443 |  | — |  | 86,443 |
Other assets |  | 77,631 |  | — |  | 77,631 |
Total other assets |  | 1,060,915 |  | 571,022 |  | 1,631,937 |
Total assets |  | $ | 2,280,678 |  | $ | 2,443,807 |  | $ | 4,724,485 |
Liabilities |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |
Current portion of financing obligation to GLPI |  | $ | — |  | $ | 47,057 |  | $ | 47,057 |
Current maturities of long-term debt |  | 40,890 |  | — |  | 40,890 |
Accounts payable |  | 66,587 |  | — |  | 66,587 |
Accrued expenses |  | 135,518 |  | 2,221 |  | 137,739 |
Accrued interest |  | 11,427 |  | — |  | 11,427 |
Accrued salaries and wages |  | 69,671 |  | — |  | 69,671 |
Gaming, pari-mutuel, property, and other taxes |  | 55,762 |  | (36 | ) | 55,726 |
Insurance financing |  | 10,251 |  | — |  | 10,251 |
Other current liabilities |  | 64,771 |  | — |  | 64,771 |
Total current liabilities |  | 454,877 |  | 49,242 |  | 504,119 |
Long-term liabilities |  |  |  |  |  |  |
Long-term financing obligation to GLPI, net of current portion |  | — |  | 3,551,981 |  | 3,551,981 |
Long-term debt, net of current maturities and debt issuance costs |  | 1,235,061 |  | 5,398 |  | 1,240,459 |
Deferred income taxes |  | — |  | 90,336 |  | 90,336 |
Noncurrent tax liabilities |  | 8,171 |  | (1,063 | ) | 7,108 |
Other noncurrent liabilities |  | 7,570 |  | 19,540 |  | 27,110 |
Total long-term liabilities |  | 1,250,802 |  | 3,666,192 |  | 4,916,994 |
Shareholders’ equity (deficit) |  |  |  |  |  |  |
Series C Preferred stock ($.01 par value, 18,500 shares authorized, 8,624 shares issued and outstanding at March 31, 2015) |  | — |  | — |  | — |
Common stock ($.01 par value, 200,000,000 shares authorized, 81,873,026 shares issued and 79,705,633 shares outstanding, at March 31, 2015) |  | 791 |  | 27 |  | 818 |
Treasury stock, at cost (2,167,393 shares issued and held at March 31, 2015) |  | — |  | (28,414 | ) | (28,414 | )
Additional paid-in capital |  | 929,598 |  | 37,776 |  | 967,374 |
Retained deficit |  | (352,392 | ) | (1,281,016 | ) | (1,633,408 | )
Accumulated other comprehensive (loss) income |  | (2,998 | ) | — |  | (2,998 | )
Total shareholders’ equity (deficit) |  | 574,999 |  | (1,271,627 | ) | (696,628 | )
Total liabilities and shareholders’ equity (deficit) |  | $ | 2,280,678 |  | $ | 2,443,807 |  | $ | 4,724,485 |
The following table presents the condensed consolidated balance sheet as previously reported, restatement adjustments and the condensed consolidated balance sheet as restated at December 31, 2014:
|  | As Previously |  | Restatement |  |  |
|  | Reported |  | Adjustments |  | As Restated |
Assets |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 208,673 |  | $ | — |  | $ | 208,673 |
Receivables, net of allowance for doubtful accounts of $2,004 |  | 41,618 |  | — |  | 41,618 |
Prepaid expenses |  | 68,947 |  | 1,838 |  | 70,785 |
Deferred income taxes |  | 55,579 |  | (15,236 | ) | 40,343 |
Other current assets |  | 11,189 |  | — |  | 11,189 |
Total current assets |  | 386,006 |  | (13,398 | ) | 372,608 |
Property and equipment, net |  | 769,145 |  | 1,900,587 |  | 2,669,732 |
Other assets |  |  |  |  |  |  |
Investment in and advances to unconsolidated affiliates |  | 179,551 |  | — |  | 179,551 |
Goodwill |  | 277,582 |  | 596,602 |  | 874,184 |
Other intangible assets, net |  | 370,562 |  | 48,891 |  | 419,453 |
Deferred income taxes |  | 79,067 |  | (79,067 | ) | — |
Advances to Jamul Tribe |  | 62,048 |  |  |  | 62,048 |
Other assets |  | 87,318 |  | — |  | 87,318 |
Total other assets |  | 1,056,128 |  | 566,426 |  | 1,622,554 |
Total assets |  | $ | 2,211,279 |  | $ | 2,453,615 |  | $ | 4,664,894 |
Liabilities |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |
Current portion of financing obligation to GLPI |  | — |  | 46,884 |  | 46,884 |
Current maturities of long-term debt |  | 30,853 |  | — |  | 30,853 |
Accounts payable |  | 43,136 |  | — |  | 43,136 |
Accrued expenses |  | 130,818 |  | 2,274 |  | 133,092 |
Accrued interest |  | 5,163 |  | — |  | 5,163 |
Accrued salaries and wages |  | 84,034 |  | — |  | 84,034 |
Gaming, pari-mutuel, property, and other taxes |  | 52,132 |  | (160 | ) | 51,972 |
Insurance financing |  | 13,680 |  | — |  | 13,680 |
Other current liabilities |  | 75,703 |  | 70 |  | 75,773 |
Total current liabilities |  | 435,519 |  | 49,068 |  | 484,587 |
Long-term liabilities |  |  |  |  |  |  |
Long-term financing obligation to GLPI, net of current portion |  | — |  | 3,564,629 |  | 3,564,629 |
Long-term debt, net of current maturities and debt issuance costs |  | 1,204,828 |  | 5,749 |  | 1,210,577 |
Deferred income taxes |  | — |  | 78,633 |  | 78,633 |
Noncurrent tax liabilities |  | 8,188 |  | (1,153 | ) | 7,035 |
Other noncurrent liabilities |  | 8,258 |  | 19,189 |  | 27,447 |
Total long-term liabilities |  | 1,221,274 |  | 3,667,047 |  | 4,888,321 |
Shareholders’ equity (deficit) |  |  |  |  |  |  |
Series C Preferred stock ($.01 par value, 18,500 shares authorized, 8,624 shares issued and outstanding at December 31, 2014) |  | — |  | — |  | — |
Common stock ($.01 par value, 200,000,000 shares authorized, 81,329,210 shares issued and 79,161,817 share outstanding, at December 31, 2014) |  | 786 |  | 27 |  | 813 |
Treasury stock, at cost (2,167,393 shares held at December 31, 2014) |  | — |  | (28,414 | ) | (28,414 | )
Additional paid-in capital |  | 918,370 |  | 37,776 |  | 956,146 |
Retained deficit |  | (363,388 | ) | (1,271,889 | ) | (1,635,277 | )
Accumulated other comprehensive (loss) income |  | (1,282 | ) | — |  | (1,282 | )
Total shareholders’ equity (deficit) |  | 554,486 |  | (1,262,500 | ) | (708,014 | )
Total liabilities and shareholders’ equity (deficit) |  | $ | 2,211,279 |  | $ | 2,453,615 |  | $ | 4,664,894 |
The following table presents the condensed consolidated statement of income as previously reported, restatement adjustments and the condensed consolidated statement of income as restated for the three months ended March 31, 2015:
|  | As Previously |  | Restatement |  |  |
|  | Reported |  | Adjustments |  | As Restated |
Revenues |  |  |  |  |  |  |
Gaming |  | $ | 591,336 |  | $ | — |  | $ | 591,336 |
Food, beverage and other |  | 108,763 |  | — |  | 108,763 |
Management service fee |  | 1,927 |  | — |  | 1,927 |
Revenues |  | 702,026 |  | — |  | 702,026 |
Less promotional allowances |  | (37,888 | ) | — |  | (37,888 | )
Net revenues |  | 664,138 |  | — |  | 664,138 |
Operating expenses |  |  |  |  |  |  |
Gaming expense |  | 294,895 |  | — |  | 294,895 |
Food, beverage and other |  | 77,929 |  | — |  | 77,929 |
General and administrative |  | 116,069 |  | 187 |  | 116,256 |
Rental expense related to Master Lease |  | 108,845 |  | (108,845 | ) | — |
Depreciation and amortization |  | 42,922 |  | 20,447 |  | 63,369 |
Total operating expenses |  | 640,660 |  | (88,211 | ) | 552,449 |
Income from operations |  | 23,478 |  | 88,211 |  | 111,689 |
Other income (expenses) |  |  |  |  |  |  |
Interest expense |  | (12,163 | ) | (96,183 | ) | (108,346 | )
Interest income |  | 1,870 |  | — |  | 1,870 |
Income from unconsolidated affiliates |  | 3,982 |  | — |  | 3,982 |
Other |  | 3,089 |  | — |  | 3,089 |
Total other expenses |  | (3,222 | ) | (96,183 | ) | (99,405 | )
Income from operations before income taxes |  | 20,256 |  | (7,972 | ) | 12,284 |
Income tax (benefit) provision |  | 9,260 |  | 1,155 |  | 10,415 |
Net income |  | $ | 10,996 |  | $ | (9,127 | ) | $ | 1,869 |
Earnings per common share: |  |  |  |  |  |  |
Basic earnings per common share |  | $ | 0.12 |  | $ | (0.10 | ) | $ | 0.02 |
Diluted earnings per common share |  | $ | 0.12 |  | $ | (0.10 | ) | $ | 0.02 |
The following table presents the condensed consolidated statement of income as previously reported, restatement adjustments and the condensed consolidated statement of income as restated for the three months ended March 31, 2014:
|  | As Previously |  | Restatement |  |  |
|  | Reported |  | Adjustments |  | As Restated |
Revenues |  |  |  |  |  |  |
Gaming |  | $ | 570,683 |  | $ | — |  | $ | 570,683 |
Food, beverage and other |  | 104,870 |  | — |  | 104,870 |
Management service fee |  | 2,458 |  | — |  | 2,458 |
Revenues |  | 678,011 |  | — |  | 678,011 |
Less promotional allowances |  | (36,931 | ) | — |  | (36,931 | )
Net revenues |  | 641,080 |  | — |  | 641,080 |
Operating expenses |  |  |  |  |  |  |
Gaming expense |  | 286,077 |  | (2,809 | ) | 283,268 |
Food, beverage and other |  | 77,538 |  | — |  | 77,538 |
General and administrative |  | 107,739 |  | (164 | ) | 107,575 |
Rental expense related to Master Lease |  | 104,309 |  | (104,309 | ) | — |
Depreciation and amortization |  | 47,366 |  | 22,819 |  | 70,185 |
Total operating expenses |  | 623,029 |  | (84,463 | ) | 538,566 |
Income from operations |  | 18,051 |  | 84,463 |  | 102,514 |
Other income (expenses) |  |  |  |  |  |  |
Interest expense |  | (11,295 | ) | (93,219 | ) | (104,514 | )
Interest income |  | 467 |  | — |  | 467 |
Income from unconsolidated affiliates |  | 2,483 |  | — |  | 2,483 |
Other |  | 1,631 |  | — |  | 1,631 |
Total other expenses |  | (6,714 | ) | (93,219 | ) | (99,933 | )
Income from operations before income taxes |  | 11,337 |  | (8,756 | ) | 2,581 |
Income tax (benefit) provision |  | 6,800 |  | (4,799 | ) | 2,001 |
Net income |  | $ | 4,537 |  | $ | (3,957 | ) | $ | 580 |
Earnings per common share: |  |  |  |  |  |  |
Basic earnings per common share |  | $ | 0.05 |  | $ | (0.04 | ) | $ | 0.01 |
Diluted earnings per common share |  | $ | 0.05 |  | $ | (0.04 | ) | $ | 0.01 |
The following table presents the condensed consolidated statement of cash flow as previously reported, restatement adjustments and the condensed consolidated statement of cash flows as restated for the three months ended March 31, 2015:
|  | As Previously |  | Restatement |  |  |
|  | Reported |  | Adjustments |  | As Restated |
Three Months Ended March 31, 2015: |  |  |  |  |  |  |
Operating activities |  |  |  |  |  |  |
Net income |  | $ | 10,996 |  | $ | (9,127 | ) | $ | 1,869 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |
Depreciation and amortization |  | 42,922 |  | 20,447 |  | 63,369 |
Amortization of items charged to interest expense |  | 1,505 |  | — |  | 1,505 |
Accretion of settlement value on other noncurrent liabilities |  | 351 |  | — |  | 351 |
Loss on sale of fixed assets |  | 153 |  | — |  | 153 |
Income from unconsolidated affiliates |  | (3,982 | ) | — |  | (3,982 | )
Distributions of earnings from unconsolidated affiliates |  | 8,000 |  | — |  | 8,000 |
Deferred income taxes |  | 15,374 |  | 3,274 |  | 18,648 |
Charge for stock-based compensation |  | 2,084 |  | — |  | 2,084 |
Decrease (increase) |  |  |  |  |  |  |
Accounts receivable |  | 727 |  | — |  | 727 |
Prepaid expenses and other current assets |  | (2,742 | ) | — |  | (2,742 | )
Other assets |  | 6,400 |  | — |  | 6,400 |
Increase (decrease) |  |  |  |  |  |  |
Accounts payable |  | 2,887 |  | — |  | 2,887 |
Accrued expenses |  | 4,985 |  | (54 | ) | 4,931 |
Accrued interest |  | 6,264 |  | — |  | 6,264 |
Accrued salaries and wages |  | (14,363 | ) | — |  | (14,363 | )
Gaming, pari-mutuel, property and other taxes |  | 3,630 |  | 124 |  | 3,754 |
Income taxes |  | (9,529 | ) | (2,209 | ) | (11,738 | )
Other current and noncurrent liabilities |  | (11,620 | ) | (70 | ) | (11,690 | )
Other noncurrent tax liabilities |  | 1,519 |  | 90 |  | 1,609 |
Net cash provided by operating activities |  | 65,561 |  | 12,475 |  | 78,036 |
Investing activities |  |  |  |  |  |  |
Capital project expenditures, net of reimbursements |  | (36,929 | ) | — |  | (36,929 | )
Capital maintenance expenditures |  | (11,860 | ) | — |  | (11,860 | )
Advances to Jamul Tribe |  | (16,341 | ) | — |  | (16,341 | )
Proceeds from sale of property and equipment |  | 146 |  | — |  | 146 |
Investment in joint ventures |  | (328 | ) | — |  | (328 | )
Net cash used in investing activities |  | (65,312 | ) | — |  | (65,312 | )
Financing activities |  |  |  |  |  |  |
Proceeds from exercise of options |  | 2,743 |  |  |  | 2,743 |
Principal payments on financing obligation with GLPI |  | — |  | (12,475 | ) | (12,475 | )
Proceeds from issuance of long-term debt, net of issuance costs |  | 45,000 |  | — |  | 45,000 |
Principal payments on long-term debt |  | (21,886 | ) | — |  | (21,886 | )
Proceeds from insurance financing |  | 885 |  | — |  | 885 |
Payments on insurance financing |  | (4,314 | ) | — |  | (4,314 | )
Tax benefit from stock options exercised |  | 6,379 |  | — |  | 6,379 |
Net cash provided by (used in) financing activities |  | 28,807 |  | (12,475 | ) | 16,332 |
Net increase (decrease) in cash and cash equivalents |  | 29,056 |  | — |  | 29,056 |
Cash and cash equivalents at beginning of year |  | 208,673 |  | — |  | 208,673 |
Cash and cash equivalents at end of year |  | $ | 237,729 |  | $ | — |  | $ | 237,729 |
Supplemental disclosure |  |  |  |  |  |  |
Interest expense paid, net of amounts capitalized |  | $ | 4,036 |  | $ | 96,143 |  | $ | 100,179 |
Income taxes paid |  | $ | 226 |  | $ | — |  | $ | 226 |
The following table presents the condensed consolidated statement of cash flow as previously reported, restatement adjustments and the condensed consolidated statement of cash flows as restated for the three months ended March 31, 2014:
|  | As Previously |  | Restatement |  |  |
|  | Reported |  | Adjustments |  | As Restated |
Three Months Ended March 31, 2014: |  |  |  |  |  |  |
Operating activities |  |  |  |  |  |  |
Net income |  | $ | 4,537 |  | $ | (3,957 | ) | $ | 580 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |
Depreciation and amortization |  | 47,366 |  | 22,819 |  | 70,185 |
Amortization of items charged to interest expense |  | 1,507 |  | — |  | 1,507 |
Gain on sale of fixed assets |  | (49 | ) | — |  | (49 | )
Income from unconsolidated affiliates |  | (2,483 | ) | — |  | (2,483 | )
Distributions of earnings from unconsolidated affiliates |  | 5,500 |  | — |  | 5,500 |
Deferred income taxes |  | 1,803 |  | (1,515 | ) | 288 |
Charge for stock-based compensation |  | 2,579 |  | — |  | 2,579 |
Decrease (increase) |  |  |  |  |  |  |
Accounts receivable |  | (599 | ) | — |  | (599 | )
Prepaid expenses and other current assets |  | (12,739 | ) | (365 | ) | (13,104 | )
Other assets |  | (1,854 | ) | 8,941 |  | 7,087 |
Increase (decrease) |  |  |  |  |  |  |
Accounts payable |  | 2,186 |  | — |  | 2,186 |
Accrued expenses |  | (11,384 | ) | (2,882 | ) | (14,266 | )
Accrued interest |  | 2,484 |  | — |  | 2,484 |
Accrued salaries and wages |  | (15,590 | ) | (40 | ) | (15,630 | )
Gaming, pari-mutuel, property and other taxes |  | 2,768 |  | (27 | ) | 2,741 |
Income taxes |  | (7,582 | ) | — |  | (7,582 | )
Other current and noncurrent liabilities |  | 669 |  | 138 |  | 807 |
Other noncurrent tax liabilities |  | 4,489 |  | (3,284 | ) | 1,205 |
Net cash provided by operating activities |  | 23,608 |  | 19,828 |  | 43,436 |
Investing activities |  |  |  |  |  |  |
Capital project expenditures, net of reimbursements |  | (12,957 | ) | — |  | (12,957 | )
Capital maintenance expenditures |  | (24,084 | ) | — |  | (24,084 | )
Advances to Jamul Tribe |  | — |  | (8,573 | ) | (8,573 | )
Proceeds from sale of property and equipment |  | 129 |  | — |  | 129 |
Decrease in cash in escrow |  | 18,000 |  | — |  | 18,000 |
Acquisition of gaming license |  | (25,586 | ) | — |  | (25,586 | )
Net cash used in investing activities |  | (44,498 | ) | (8,573 | ) | (53,071 | )
Financing activities |  |  |  |  |  |  |
Proceeds from exercise of options |  | 5,581 |  | — |  | 5,581 |
Principal payments on financing obligation with GLPI |  | — |  | (11,255 | ) | (11,255 | )
Proceeds from issuance of long-term debt, net of issuance costs |  | (327 | ) | — |  | (327 | )
Principal payments on long-term debt |  | (6,898 | ) | — |  | (6,898 | )
Proceeds from insurance financing |  | 14,335 |  | — |  | 14,335 |
Payments on insurance financing |  | (4,853 | ) | — |  | (4,853 | )
Tax benefit from stock options exercised |  | 7,752 |  | — |  | 7,752 |
Net cash provided by (used in) financing activities |  | 15,590 |  | (11,255 | ) | 4,335 |
Net increase (decrease) in cash and cash equivalents |  | (5,300 | ) | — |  | (5,300 | )
Cash and cash equivalents at beginning of year |  | 292,995 |  | — |  | 292,995 |
Cash and cash equivalents at end of year |  | $ | 287,695 |  | $ | — |  | $ | 287,695 |
Supplemental disclosure |  |  |  |  |  |  |
Interest expense paid, net of amounts capitalized |  | $ | 7,278 |  | $ | 92,047 |  | $ | 99,325 |
Income taxes paid |  | $ | 352 |  | $ | — |  | $ | 352 |

X
- References No definition available. + Details
Name: | us-gaap_AccountingChangesAndErrorCorrectionsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting accounting changes, excludes error corrections information. + References No definition available. + Details
Name: | us-gaap_AccountingChangesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration