XML 37 R26.htm IDEA: XBRL DOCUMENT
v3.19.2

New Accounting Pronouncements (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] |
Schedule of impact of adoption of ASU-2014-09 | The impact of the adoption of the new lease standard on our unaudited Condensed Consolidated Balance Sheets at January 1, 2019 was as follows (only financial statement line items impacted are presented):
|  |  | Impacts of: |  |  |  |
(in thousands) | As Reported as of December 31, 2018 |  | Financing Obligations - Master Leases (1) |  | Finance Leases - Dayton and Mahoning Valley |  | Operating Leases - Master Leases (2) |  | Operating Lease - Meadows (3) |  | Other Operating Leases - Non-Master Leases |  | As Adjusted for ASC 842 |  | Increase/(Decrease)
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Prepaid expenses | $ | 62,971 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (977 | ) |  | $ | 61,994 |  |  | $ | (977 | )
Total current assets | $ | 677,658 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (977 | ) |  | $ | 676,681 |  |  | $ | (977 | )
Property and equipment, net (4) | $ | 6,868,768 |  |  | $ | — |  |  | $ | (164,314 | ) |  | $ | (1,407,357 | ) |  | $ | — |  |  | $ | — |  |  | $ | 5,297,097 |  |  | $ | (1,571,671 | )
Goodwill | $ | 1,228,422 |  |  | $ | 5,517 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,233,939 |  |  | $ | 5,517 |
Operating lease right-of-use assets (5) | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,541,144 |  |  | $ | 112,804 |  |  | $ | 152,519 |  |  | $ | 3,806,467 |  |  | $ | 3,806,467 |
Finance lease right-of-use assets (6) | $ | — |  |  | $ | — |  |  | $ | 224,482 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 224,482 |  |  | $ | 224,482 |
Total assets | $ | 10,961,012 |  |  | $ | 5,517 |  |  | $ | 60,168 |  |  | $ | 2,133,787 |  |  | $ | 112,804 |  |  | $ | 151,542 |  |  | $ | 13,424,830 |  |  | $ | 2,463,818 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current portion of financing obligations (7) | $ | 67,777 |  |  | $ | — |  |  | $ | (1,534 | ) |  | $ | (16,157 | ) |  | $ | — |  |  | $ | — |  |  | $ | 50,086 |  |  | $ | (17,691 | )
Current portion of operating lease liabilities (5) | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 72,894 |  |  | $ | 20,515 |  |  | $ | 8,913 |  |  | $ | 102,322 |  |  | $ | 102,322 |
Current portion of finance lease liabilities (6) | $ | — |  |  | $ | — |  |  | $ | 5,752 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,752 |  |  | $ | 5,752 |
Accrued expenses and other current liabilities | $ | 577,968 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (434 | ) |  | $ | 577,534 |  |  | $ | (434 | )
Total current liabilities | $ | 738,436 |  |  | $ | — |  |  | $ | 4,218 |  |  | $ | 56,737 |  |  | $ | 20,515 |  |  | $ | 8,479 |  |  | $ | 828,385 |  |  | $ | 89,949 |
Long-term portion of financing obligations (7) | $ | 7,080,638 |  |  | $ | 5,517 |  |  | $ | (181,262 | ) |  | $ | (2,760,587 | ) |  | $ | — |  |  | $ | — |  |  | $ | 4,144,306 |  |  | $ | (2,936,332 | )
Long-term portion of operating lease liabilities (5) | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,467,057 |  |  | $ | 92,289 |  |  | $ | 144,988 |  |  | $ | 3,704,334 |  |  | $ | 3,704,334 |
Long-term portion of finance lease liabilities (6) | $ | — |  |  | $ | — |  |  | $ | 218,329 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 218,329 |  |  | $ | 218,329 |
Deferred income taxes (8) | $ | — |  |  | $ | — |  |  | $ | 4,288 |  |  | $ | 299,523 |  |  | $ | — |  |  | $ | — |  |  | $ | 303,811 |  |  | $ | 303,811 |
Other noncurrent liabilities | $ | 60,629 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1,925 | ) |  | $ | 58,704 |  |  | $ | (1,925 | )
Total liabilities | $ | 10,229,791 |  |  | $ | 5,517 |  |  | $ | 45,573 |  |  | $ | 1,062,730 |  |  | $ | 112,804 |  |  | $ | 151,542 |  |  | $ | 11,607,957 |  |  | $ | 1,378,166 |
Stockholders’ equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retained earnings (accumulated deficit) | $ | (967,949 | ) |  | $ | — |  |  | $ | 14,595 |  |  | $ | 1,071,057 |  |  | $ | — |  |  | $ | — |  |  | $ | 117,703 |  |  | $ | 1,085,652 |
Total Penn National Gaming, Inc. stockholders’ equity | $ | 731,226 |  |  | $ | — |  |  | $ | 14,595 |  |  | $ | 1,071,057 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,816,878 |  |  | $ | 1,085,652 |
Total stockholders’ equity | $ | 731,221 |  |  | $ | — |  |  | $ | 14,595 |  |  | $ | 1,071,057 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,816,873 |  |  | $ | 1,085,652 |
Total liabilities and stockholders’ equity | $ | 10,961,012 |  |  | $ | 5,517 |  |  | $ | 60,168 |  |  | $ | 2,133,787 |  |  | $ | 112,804 |  |  | $ | 151,542 |  |  | $ | 13,424,830 |  |  | $ | 2,463,818 |
(1) | During the first quarter of 2019, the Company identified an adjustment to the purchase price allocation associated with its October 2018 acquisition of Pinnacle Entertainment, Inc. (“Pinnacle”). The purchase price adjustment increased the financing obligation upon the adoption of the new lease standard, resulting in an increase to goodwill (see Note 5, “Acquisitions”).
(2) | Represents components contained within each of the Master Leases determined to be operating leases (primarily land).
(3) | Represents the triple net lease with GLPI for the real estate assets used in the operations of Meadows Racetrack and Casino (the “Meadows Lease”).
(4) | Represents the (i) derecognition of the carrying amount of the property and equipment, net, associated with land components contained within our Master Leases determined to be operating leases upon the adoption of the new lease standard; and (ii) derecognition of the carrying amount of the property and equipment, net, associated with land and building components associated with Dayton and Mahoning Valley determined to be finance leases upon the adoption of the new lease standard.
(5) | Operating lease ROU assets represent (i) the land components contained within the Master Leases determined to be operating leases upon the adoption of the new lease standard; and (ii) with respect to other Operating Leases, represent (a) the Meadows Lease, which was acquired by the Company in conjunction with the acquisition of Pinnacle; (b) ground and levee leases with landlords, which were not assumed by GLPI and remain an obligation of the Company; and (c) buildings and equipment not associated with our Master Leases. For leases where the rate implicit in the lease was not readily determinable, we used our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We utilized the incremental borrowing rate on the adoption date for operating leases that commenced prior to that date. The operating lease liability is based on the net present value of future lease payments.
(6) | Amounts primarily represent finance leases associated with Dayton and Mahoning Valley, which are included in the Penn Master Lease, that under ASC 840 utilized specific build-to-suit guidance. The adoption of the new lease standard required the Company to evaluate the components under current guidance contained within the new lease standard, which resulted in all components being classified as finance leases. Finance leases result in (i) the recognition of a finance lease ROU asset amortized over the lease term and (ii) a corresponding finance lease liability (recorded to interest expense over the lease term). We utilized our incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments. The finance lease liability is based on the net present value of future lease payments.
(7) | Represents components associated with our Master Leases that remain financing obligations (primarily buildings). The financing obligation at the adoption date was calculated utilizing previous assumptions as determined (a) at the lease commencement date with respect to the Penn Master Lease and (b) at the acquisition date with respect to the Pinnacle Master Lease.
(8) Represents the tax impacts related to the adoption of the new lease standard. See Note 11, “Income Taxes.”

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

X
- Definition Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=116846552&loc=d3e765-108305 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.10-01.(b)(6)) -URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=116846552&loc=d3e725-108305 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794 + Details
Name: | us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration