XML 34 R23.htm IDEA: XBRL DOCUMENT
v3.19.2

Segment Information | 6 Months Ended
--- | ---
Jun. 30, 2019
Segment Reporting [Abstract] |
Segment Information | Segment Information We have aggregated our operating segments into four reportable segments based on the similar characteristics of the operating segments within the regions in which they operate: Northeast, South, West and Midwest. The Other category is included in the following tables in order to reconcile the segment information to the consolidated information. Inter-segment revenues were not material in any of the years presented below. During the fourth quarter of 2018, the Company made revisions to its reportable segments upon the consummation of the Pinnacle Acquisition. Apart from the addition of the new properties, the most significant change was dividing the South/West segment into two separate reportable segments. The financial information presented below reflects such changes, including restating the prior period comparative financial information. The Company utilizes Adjusted EBITDAR (as defined below) as its measure of segment profit or loss. The following table highlights our revenues and Adjusted EBITDAR for each reportable segment and reconciles Adjusted EBITDAR on a consolidated basis to Net income.
| For the three months ended June 30, |  | For the six months ended June 30,
(in thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Revenues: |  |  |  |  |  |  |
Northeast segment | $ | 599,086 |  |  | $ | 465,285 |  |  | $ | 1,149,664 |  |  | $ | 924,004 |
South segment | 282,188 |  |  | 62,618 |  |  | 574,130 |  |  | 125,948 |
West segment | 164,250 |  |  | 100,751 |  |  | 322,904 |  |  | 198,717 |
Midwest segment | 268,160 |  |  | 188,162 |  |  | 539,422 |  |  | 373,696 |
Other (1) | 9,410 |  |  | 10,097 |  |  | 19,545 |  |  | 20,633 |
Revenues | $ | 1,323,094 |  |  | $ | 826,913 |  |  | $ | 2,605,665 |  |  | $ | 1,642,998 |
Adjusted EBITDAR (2): |  |  |  |  |  |  |
Northeast segment | $ | 186,190 |  |  | $ | 148,394 |  |  | $ | 350,944 |  |  | $ | 293,371 |
South segment | 92,761 |  |  | 20,545 |  |  | 190,605 |  |  | 41,663 |
West segment | 50,460 |  |  | 26,103 |  |  | 100,383 |  |  | 50,034 |
Midwest segment | 97,793 |  |  | 67,543 |  |  | 197,012 |  |  | 135,728 |
Other (1) | (20,747 | ) |  | (15,479 | ) |  | (41,050 | ) |  | (31,144 | )
Adjusted EBITDAR (2) | 406,457 |  |  | 247,106 |  |  | 797,894 |  |  | 489,652 |
Other operating benefits (costs) and other income (expenses): |  |  |  |  |  |  |
Rent expense associated with triple net operating leases (3) | (90,025 | ) |  | — |  |  | (174,755 | ) |  | — |
Stock-based compensation | (3,247 | ) |  | (3,003 | ) |  | (6,664 | ) |  | (5,932 | )
Cash-settled stock-based awards variance | 3,436 |  |  | (7,800 | ) |  | 2,964 |  |  | (338 | )
Gain (loss) on disposal of assets | (371 | ) |  | 52 |  |  | (893 | ) |  | (3 | )
Contingent purchase price | (1,040 | ) |  | (202 | ) |  | (5,757 | ) |  | (1,337 | )
Pre-opening and acquisition costs | (3,700 | ) |  | (5,879 | ) |  | (8,080 | ) |  | (11,972 | )
Depreciation and amortization | (106,020 | ) |  | (58,559 | ) |  | (210,073 | ) |  | (118,949 | )
Recoveries on loan loss and unfunded loan commitments, net of impairment losses | — |  |  | 16,985 |  |  | — |  |  | 16,367 |
Insurance recoveries, net of deductible charges | — |  |  | 68 |  |  | — |  |  | 68 |
Non-operating items for Kansas JV | (855 | ) |  | (1,279 | ) |  | (1,928 | ) |  | (2,572 | )
Interest expense | (135,039 | ) |  | (115,873 | ) |  | (267,626 | ) |  | (231,613 | )
Interest income | 257 |  |  | 241 |  |  | 576 |  |  | 490 |
Loss on early extinguishment of debt | — |  |  | (2,579 | ) |  | — |  |  | (3,461 | )
Other | 43 |  |  | (48 | ) |  | 43 |  |  | (44 | )
Income before income taxes | 69,896 |  |  | 69,230 |  |  | 125,701 |  |  | 130,356 |
Income tax expense | (18,539 | ) |  | (15,242 | ) |  | (33,357 | ) |  | (30,931 | )
Net income | $ | 51,357 |  |  | $ | 53,988 |  |  | $ | 92,344 |  |  | $ | 99,425 |
(1) | The Other category consists of the Company's standalone racing operations, namely Sanford-Orlando Kennel Club, located in Longwood, Florida, and the Company’s joint venture interests in Texas and New Jersey (see Note 10, “Investments in and Advances to Unconsolidated Affiliates”). The Other category also includes PIV, our management contract for Retama Park Racetrack, and our live and televised poker tournament series that operates under the trade name, Heartland Poker Tour. Expenses incurred for corporate and shared services activities that are directly attributable to a property or are otherwise incurred to support a property are allocated to each property. The Other category also includes corporate overhead costs, which consist of certain expenses, such as: payroll, professional fees, travel expenses and other general and administrative expenses that do not directly relate to or have otherwise been allocated to a property.
(2) | We define Adjusted EBITDAR as earnings before interest income and expense, income taxes, depreciation and amortization, rent expense associated with triple net operating leases (see footnote (3) below), stock-based compensation, debt extinguishment and financing charges, impairment charges, insurance recoveries and deductible charges, changes in the estimated fair value of our contingent purchase price obligations, gain or loss on disposal of assets, the difference between budget and actual expense for cash-settled stock-based awards, pre-opening and acquisition costs, and other income or expenses. Adjusted EBITDAR is also inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (such as depreciation and amortization) added back for our joint venture in Kansas Entertainment. Adjusted EBITDAR excludes payments associated with our Master Leases, the Meadows Lease, the Margaritaville Lease, and the Greektown Lease, as such amounts are included as either interest expense or rent expense.
(3) | The Company’s triple net operating leases include certain components of the Master Leases (primarily land), the Meadows Lease, the Margaritaville Lease, and the Greektown Lease.
| For the three months ended June 30, |  | For the six months ended June 30,
(in thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Capital expenditures: |  |  |  |  |  |  |
Northeast segment | $ | 31,781 |  |  | $ | 8,489 |  |  | $ | 44,466 |  |  | $ | 12,701 |
South segment | 7,698 |  |  | 2,814 |  |  | 16,570 |  |  | 3,496 |
West segment | 7,065 |  |  | 2,510 |  |  | 14,092 |  |  | 5,240 |
Midwest segment | 9,344 |  |  | 5,144 |  |  | 16,383 |  |  | 8,151 |
Other | 1,476 |  |  | 2,188 |  |  | 3,519 |  |  | 3,370 |
Total capital expenditures | $ | 57,364 |  |  | $ | 21,145 |  |  | $ | 95,030 |  |  | $ | 32,958 |
(in thousands) | Northeast |  | South |  | West |  | Midwest |  | Other |  | Total
As of June 30, 2019 |  |  |  |  |  |  |  |  |  |  |
Investment in and advances to unconsolidated affiliates | $ | 143 |  |  | $ | — |  |  | $ | — |  |  | $ | 88,561 |  |  | $ | 38,515 |  |  | $ | 127,219 |
Total assets (1) | $ | 2,315,457 |  |  | $ | 1,443,203 |  |  | $ | 750,615 |  |  | $ | 1,482,103 |  |  | $ | 8,217,847 |  |  | $ | 14,209,225 |
As of December 31, 2018 |  |  |  |  |  |  |  |  |  |  |
Investment in and advances to unconsolidated affiliates | $ | 105 |  |  | $ | — |  |  | $ | — |  |  | $ | 89,350 |  |  | $ | 39,033 |  |  | $ | 128,488 |
Total assets (2) | $ | 1,330,256 |  |  | $ | 1,082,304 |  |  | $ | 755,665 |  |  | $ | 1,411,468 |  |  | $ | 6,381,319 |  |  | $ | 10,961,012 |
(1) | As of June 30, 2019, total assets of the Other category includes the real estate assets subject to the Master Leases, which are either classified as property and equipment, operating lease ROU assets, or finance lease ROU assets, depending on whether the underlying component of the Master Leases was determined to be an operating lease, a finance lease, or continue to be financing obligations, upon adoption of ASC 842.
(2) As of December 31, 2018, total assets of the Other category includes the real estate assets subject to the Master Leases, which are classified as property and equipment.

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration