Property and Equipment

3 Months Ended

Mar. 31, 2015

5. Property and Equipment

Property and equipment, net, consists of the following:

	March 31,			December 31,
	2015			2014
	(Restated)			(Restated)
	(in thousands)

Property and equipment - non-leased
Land and improvements	$	43,211		$	42,350
Building and improvements	187,696			173,043
Furniture, fixtures, and equipment	1,218,830			1,213,143
Leasehold improvements	120,209			120,984
Construction in progress	115,955			69,367

	1,685,901			1,618,887
Less accumulated depreciation	(1,019,401		)	(988,490		)

	666,500			630,397

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

	2,601,720			2,601,720
Less accumulated depreciation	(585,559		)	(562,385		)

	2,016,161			2,039,335

Property and equipment, net	$	2,682,661		$	2,669,732

Property and equipment, net increased by $12.9 million for the three months ended March 31, 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 three months ended March 31, 2015.

Depreciation expense, for property and equipment as well as capital leases, totaled $63.4 million and $64.8 million for the three months ended March 31, 2015 and March 31, 2014, respectively, of which $23.2 million, $22.3 million related to assets under the Master Lease, respectively. Interest capitalized in connection with major construction projects was $0.6 million, $0.1 million for the three months ended March 31, 2015 and March 31, 2014, respectively.