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v3.19.2

Segment Information (Tables) | 6 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Schedule of segment information | 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

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
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