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Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2018
Accounting Policies [Abstract] |
Schedule of complimentaries | Revenues recorded to food and beverage, hotel, and other and offset to gaming revenues for the year ended December 31, 2018 were as follows:
(in thousands) | For the year ended December 31, 2018
Food and beverage | $ | 137,179 |
Hotel | 60,859 |
Other | 8,099 |
Total complimentaries associated with gaming contracts | $ | 206,137 |
Schedule of disaggregation of revenue | Our revenue disaggregation by type of revenue and geographic location was as follows:
| For the year ended December 31, 2018
(in thousands) | Northeast |  | South |  | West |  | Midwest |  | Other |  | Total
Revenues: |  |  |  |  |  |  |  |  |  |  |
Gaming | $ | 1,644,176 |  |  | $ | 302,842 |  |  | $ | 228,055 |  |  | $ | 719,753 |  |  | $ | 35 |  |  | $ | 2,894,861 |
Food and beverage | 109,645 |  |  | 56,631 |  |  | 89,566 |  |  | 57,886 |  |  | 1,084 |  |  | 314,812 |
Hotel | 23,208 |  |  | 23,320 |  |  | 90,824 |  |  | 26,323 |  |  | — |  |  | 163,675 |
Racing | 20,275 |  |  | — |  |  | 580 |  |  | — |  |  | 5,926 |  |  | 26,781 |
Reimbursable management costs | 46,822 |  |  | — |  |  | 10,459 |  |  | — |  |  | — |  |  | 57,281 |
Other | 47,388 |  |  | 11,558 |  |  | 18,403 |  |  | 19,755 |  |  | 33,404 |  |  | 130,508 |
Revenues | $ | 1,891,514 |  |  | $ | 394,351 |  |  | $ | 437,887 |  |  | $ | 823,717 |  |  | $ | 40,449 |  |  | $ | 3,587,918 |
| For the year ended December 31, 2017
(in thousands) | Northeast |  | South |  | West |  | Midwest |  | Other |  | Total
Revenues: |  |  |  |  |  |  |  |  |  |  |
Gaming | $ | 1,583,882 |  |  | $ | 202,967 |  |  | $ | 219,743 |  |  | $ | 685,429 |  |  | $ | — |  |  | $ | 2,692,021 |
Food and beverage | 114,993 |  |  | 35,532 |  |  | 82,406 |  |  | 58,414 |  |  | 1,052 |  |  | 292,397 |
Hotel | 21,513 |  |  | 10,340 |  |  | 76,147 |  |  | 21,959 |  |  | — |  |  | 129,959 |
Racing | 49,596 |  |  | — |  |  | 2,340 |  |  | — |  |  | 10,759 |  |  | 62,695 |
Reimbursable management costs | — |  |  | — |  |  | 26,060 |  |  | — |  |  | — |  |  | 26,060 |
Other | 48,645 |  |  | 6,263 |  |  | 16,605 |  |  | 16,404 |  |  | 40,417 |  |  | 128,334 |
| 1,818,629 |  |  | 255,102 |  |  | 423,301 |  |  | 782,206 |  |  | 52,228 |  |  | 3,331,466 |
Less: Promotional allowances | (62,050 | ) |  | (30,855 | ) |  | (42,883 | ) |  | (47,173 | ) |  | (535 | ) |  | (183,496 | )
Revenues | $ | 1,756,579 |  |  | $ | 224,247 |  |  | $ | 380,418 |  |  | $ | 735,033 |  |  | $ | 51,693 |  |  | $ | 3,147,970 |
| For the year ended December 31, 2016
(in thousands) | Northeast |  | South |  | West |  | Midwest |  | Other |  | Total
Revenues: |  |  |  |  |  |  |  |  |  |  |
Gaming | $ | 1,572,378 |  |  | $ | 166,509 |  |  | $ | 211,788 |  |  | $ | 655,587 |  |  | $ | — |  |  | $ | 2,606,262 |
Food and beverage | 115,834 |  |  | 30,692 |  |  | 80,003 |  |  | 58,370 |  |  | 1,313 |  |  | 286,212 |
Hotel | 20,888 |  |  | 8,843 |  |  | 73,180 |  |  | 22,493 |  |  | — |  |  | 125,404 |
Racing | 48,063 |  |  | — |  |  | 2,331 |  |  | — |  |  | 15,596 |  |  | 65,990 |
Reimbursable management costs | — |  |  | — |  |  | 15,997 |  |  | — |  |  | — |  |  | 15,997 |
Other | 46,900 |  |  | 5,646 |  |  | 16,260 |  |  | 15,454 |  |  | 24,916 |  |  | 109,176 |
| 1,804,063 |  |  | 211,690 |  |  | 399,559 |  |  | 751,904 |  |  | 41,825 |  |  | 3,209,041 |
Less: Promotional allowances | (62,254 | ) |  | (25,858 | ) |  | (38,783 | ) |  | (47,632 | ) |  | (134 | ) |  | (174,661 | )
Revenues | $ | 1,741,809 |  |  | $ | 185,832 |  |  | $ | 360,776 |  |  | $ | 704,272 |  |  | $ | 41,691 |  |  | $ | 3,034,380 |
Schedule of receivables | The Company’s receivables as of December 31, 2018 and 2017 primarily consisted of the following:
| December 31,
(in thousands) | 2018 |  | 2017
Markers issued to customers | $ | 17,242 |  |  | $ | 5,237 |
Cash, credit card, and other advances to customers | 20,925 |  |  | 13,891 |
Receivables from automatic teller machine and cash kiosk transactions | 19,244 |  |  | 2,785 |
Hotel and banquet receivables | 8,142 |  |  | 4,566 |
Receivables due from the West Virginia Lottery (1) | 4,358 |  |  | 6,088 |
Racing settlements | 6,064 |  |  | 5,493 |
Reimbursement of payroll expenses (2) | 3,439 |  |  | 3,366 |
Receivables due from platform providers for social casino game revenues | 2,255 |  |  | 3,019 |
Other | 28,329 |  |  | 21,343 |
Allowance for doubtful accounts | (3,161 | ) |  | (2,983 | )
| $ | 106,837 |  |  | $ | 62,805 |
(1) | Related to gaming revenue settlements and capital reinvestment projects at Hollywood Casino at Charles Town Races
(2) Reimbursement of payroll expenses paid on behalf of our joint venture in Kansas Entertainment (as defined below)
Schedule of estimated useful lives of property, plant and equipment | Depreciation of property and equipment is recorded using the straight-line method over the following useful lives:
| Years
Land improvements | 15
Buildings and improvements | 5 to 31
Vessels | 10 to 35
Furniture, fixtures and equipment | 3 to 31
Property and equipment, net, consisted of the following:
| December 31,
(in thousands) | 2018 |  | 2017
Property and equipment - non-Master Leases |  |  |
Land and improvements | $ | 343,987 |  |  | $ | 294,695 |
Building, vessels and improvements | 342,944 |  |  | 429,015 |
Furniture, fixtures and equipment | 1,565,830 |  |  | 1,385,889 |
Leasehold improvements | 152,943 |  |  | 130,801 |
Construction in progress | 25,473 |  |  | 15,617 |
| 2,431,177 |  |  | 2,256,017 |
Less: Accumulated depreciation | (1,400,198 | ) |  | (1,345,147 | )
| 1,030,979 |  |  | 910,870 |
Property and equipment - Master Leases |  |  |
Land and improvements | 2,970,969 |  |  | 424,700 |
Building, vessels and improvements | 3,845,062 |  |  | 2,258,577 |
| 6,816,031 |  |  | 2,683,277 |
Less: Accumulated depreciation | (978,242 | ) |  | (837,478 | )
| 5,837,789 |  |  | 1,845,799 |
Property and equipment, net | $ | 6,868,768 |  |  | $ | 2,756,669 |
Schedule of allocation of net income under the two-class method | The following table sets forth the allocation of net income for the years ended December 31, 2018, 2017 and 2016 under the two-class method:
| For the year ended December 31,
(in thousands) | 2018 |  | 2017 |  | 2016
Net income attributable to Penn National Gaming, Inc. | $ | 93,519 |  |  | $ | 473,463 |  |  | $ | 109,310 |
Net income applicable to preferred stock | — |  |  | — |  |  | 8,662 |
Net income applicable to common stock | $ | 93,519 |  |  | $ | 473,463 |  |  | $ | 100,648 |
Schedule of reconciliation of the weighted-average common shares outstanding | The following table reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS for the years ended December 31, 2018, 2017 and 2016:
| For the year ended December 31,
(in thousands) | 2018 |  | 2017 |  | 2016
Determination of shares: |  |  |  |  |
Weighted-average common shares outstanding | 97,105 |  |  | 90,854 |  |  | 82,929 |
Assumed conversion of dilutive employee stock-based awards | 3,018 |  |  | 2,431 |  |  | 1,299 |
Assumed conversion of restricted stock | 215 |  |  | 93 |  |  | 42 |
Diluted weighted-average common share outstanding before participating security | 100,338 |  |  | 93,378 |  |  | 84,270 |
Assumed conversion of preferred stock | — |  |  | — |  |  | 7,137 |
Diluted weighted-average common shares outstanding | 100,338 |  |  | 93,378 |  |  | 91,407 |
Schedule of calculation of basic and diluted EPS | The following table presents the calculation of basic and diluted EPS for the Company’s common stock for the years ended December 31, 2018, 2017 and 2016:
| For the year ended December 31,
(in thousands, except per share data) | 2018 |  | 2017 |  | 2016
Calculation of basic EPS: |  |  |  |  |
Net income applicable to common stock | $ | 93,519 |  |  | $ | 473,463 |  |  | $ | 100,648 |
Weighted-average common shares outstanding | 97,105 |  |  | 90,854 |  |  | 82,929 |
Basic EPS | $ | 0.96 |  |  | $ | 5.21 |  |  | $ | 1.21 |
Calculation of diluted EPS using two-class method: |  |  |  |  |
Net income applicable to common stock | 93,519 |  |  | 473,463 |  |  | 100,648 |
Diluted weighted-average common share outstanding before participating security | 100,338 |  |  | 93,378 |  |  | 84,270 |
Diluted EPS | $ | 0.93 |  |  | $ | 5.07 |  |  | $ | 1.19 |
Schedule of operating segments within reportable segments | For financial reporting purposes, as of December 31, 2018, we aggregate our operating segments into the following reportable segments:
Northeast segment (1) | Location
Ameristar East Chicago | East Chicago, Indiana
Hollywood Casino Bangor | Bangor, Maine
Hollywood Casino at Charles Town Races | Charles Town, West Virginia
Hollywood Casino Columbus | Columbus, Ohio
Hollywood Casino Lawrenceburg | Lawrenceburg, Indiana
Hollywood Casino at Penn National Race Course | Grantville, Pennsylvania
Hollywood Casino Toledo | Toledo, Ohio
Hollywood Gaming at Dayton Raceway | Dayton, Ohio
Hollywood Gaming at Mahoning Valley Race Course | Youngstown, Ohio
Meadows Racetrack and Casino | Washington, Pennsylvania
Plainridge Park Casino | Plainville, Massachusetts
South segment | Location
1 st Jackpot Casino Tunica | Tunica, Mississippi
Ameristar Vicksburg | Vicksburg, Mississippi
Boomtown Biloxi | Biloxi, Mississippi
Boomtown Bossier City | Bossier City, Louisiana
Boomtown New Orleans | New Orleans, Louisiana
Hollywood Casino Tunica | Tunica, Mississippi
Hollywood Casino Gulf Coast | Bay St. Louis, Mississippi
L’Auberge Baton Rouge | Baton Rouge, Louisiana
L’Auberge Lake Charles | Lake Charles, Louisiana
Resorts Casino Tunica | Tunica, Mississippi
West segment (2) | Location
Ameristar Black Hawk | Black Hawk, Colorado
Cactus Petes and Horseshu | Jackpot, Nevada
M Resort | Henderson, Nevada
Tropicana Las Vegas | Las Vegas, Nevada
Zia Park Casino | Hobbs, New Mexico
Midwest segment | Location
Ameristar Council Bluffs | Council Bluffs, Iowa
Argosy Casino Alton | Alton, Illinois
Argosy Casino Riverside | Riverside, Missouri
Hollywood Casino Aurora | Aurora, Illinois
Hollywood Casino Joliet | Joliet, Illinois
Hollywood Casino at Kansas Speedway (3) | Kansas City, Kansas
Hollywood Casino St. Louis | Maryland Heights, Missouri
Prairie State Gaming | Illinois
River City Casino | St. Louis, Missouri
(1) | The Northeast segment also included the Company’s Casino Rama management service contract, which terminated in July 2018.
(2) | The West segment also included a management service contract with the JIVDC, which terminated in May 2018.
(3) Pursuant to a joint venture with International Speedway Corporation (“International Speedway”) and includes the Company’s 50% investment in Kansas Entertainment, LLC (“Kansas Entertainment”), which owns the Hollywood Casino at Kansas Speedway.

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