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Segment Information | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
Segment Information | Note 18—Segment Information During the fourth quarter of 2021, the Company evaluated its reportable segments and changed them to: Northeast, South, West, Midwest, and Interactive. This change reflects management’s belief that the operating results of our Interactive segment represent a strategic and high growth component of our overall operations. The Interactive segment, which was previously reported within Other, includes the operating results of Penn Interactive, theScore, and the Company’s proportionate share of earnings attributable to its equity method investment in Barstool Sports. Corporate expense will continue to be reported in Other in addition to stand-alone racing operations, other joint ventures, management contracts, and Heartland Poker Tour. As a result of the change in reportable segments described above, the Company has recast previously reported segment information to conform to the current management view for all prior periods presented. The changes to reportable segments had no impact to the Company’s consolidated financial statements. We have aggregated our operating segments into five reportable segments. Retail operating segments are based on the similar characteristics within the regions in which they operate: Northeast, South, West, and Midwest. Our Interactive segment includes our interactive operations (as defined above). The Other category is included in the following tables in order to reconcile the segment information to the consolidated 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 (loss). The following tables present the Company’s segment information. As a result of the change in reportable segments described above, we have recast previously reported segment information to conform to the current presentation in the following tables:
| For the year ended December 31,
(in millions) | 2021 |  | 2020 |  | 2019
Revenues: |  |  |  |  |
Northeast segment | $ | 2,552.4 |  |  | $ | 1,639.3 |  |  | $ | 2,399.9 |
South segment | 1,322.2 |  |  | 849.6 |  |  | 1,118.9 |
West segment | 521.4 |  |  | 302.5 |  |  | 642.5 |
Midwest segment | 1,102.7 |  |  | 681.4 |  |  | 1,094.5 |
Interactive segment | 432.9 |  |  | 121.1 |  |  | 38.3 |
Other (1) | 10.6 |  |  | 3.9 |  |  | 9.2 |
Intersegment eliminations (2) | (37.2) |  |  | (19.1) |  |  | (1.9) |
Total | $ | 5,905.0 |  |  | $ | 3,578.7 |  |  | $ | 5,301.4 |
Adjusted EBITDAR (3): |  |  |  |  |
Northeast segment | $ | 848.4 |  |  | $ | 478.9 |  |  | $ | 720.8 |
South segment | 587.0 |  |  | 318.9 |  |  | 369.8 |
West segment | 195.0 |  |  | 82.2 |  |  | 198.8 |
Midwest segment | 500.1 |  |  | 258.3 |  |  | 403.6 |
Interactive segment | (35.4) |  |  | 37.2 |  |  | 11.6 |
Other (1) | (100.7) |  |  | (80.7) |  |  | (99.4) |
Total (3) | 1,994.4 |  |  | 1,094.8 |  |  | 1,605.2 |
Other operating benefits (costs) and other income (expenses): |  |  |  |  |
Rent expense associated with triple net operating leases (4) | (454.4) |  |  | (419.8) |  |  | (366.4) |
Stock-based compensation | (35.1) |  |  | (14.5) |  |  | (14.9) |
Cash-settled stock-based awards variance | (1.2) |  |  | (67.2) |  |  | (0.8) |
Gain (loss) on disposal of assets | (1.1) |  |  | 29.2 |  |  | (5.5) |
Contingent purchase price | (1.9) |  |  | 1.1 |  |  | (7.0) |
Pre-opening expenses (5) | (5.4) |  |  | (11.8) |  |  | (22.3) |
Depreciation and amortization | (344.5) |  |  | (366.7) |  |  | (414.2) |
Impairment losses | — |  |  | (623.4) |  |  | (173.1) |
Insurance recoveries, net of deductible charges | — |  |  | 0.1 |  |  | 3.0 |
Non-operating items of equity method investments (6) | (7.7) |  |  | (4.7) |  |  | (3.7) |
Interest expense, net | (561.7) |  |  | (543.2) |  |  | (534.2) |
Loss on early extinguishment of debt | — |  |  | (1.2) |  |  | — |
Other (5)(7) | (42.3) |  |  | 93.1 |  |  | 20.0 |
Income (loss) before income taxes | 539.1 |  |  | (834.2) |  |  | 86.1 |
Income tax benefit (expense) | (118.6) |  |  | 165.1 |  |  | (43.0) |
Net income (loss) | $ | 420.5 |  |  | $ | (669.1) |  |  | $ | 43.1 |
(1)The Other category consists of the Company’s stand-alone racing operations, namely Sanford-Orlando Kennel Club, Sam Houston and Valley Race Parks (the remaining 50% was acquired by Penn National on August 1, 2021), the Company’s joint venture interests in Freehold Raceway; our management contract for Retama Park Racetrack and our live and televised poker tournament series that operates under the trade name, Heartland Poker Tour (“HPT”). 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 not otherwise been allocated to a property. (2)Primarily represents the elimination of intersegment revenues associated with our internally-branded retail sportsbooks, which are operated by Penn Interactive. (3)We define Adjusted EBITDAR as earnings before interest expense, net; income taxes; depreciation and amortization; rent expense associated with triple net operating leases (see footnote (4) below); stock-based compensation; debt extinguishment and financing charges; impairment losses; insurance recoveries, net of 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 expenses (see footnote (5) below); and other. Adjusted EBITDAR is also inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (see footnote (6) below) added back for Barstool Sports and our Kansas Entertainment joint venture. (4)The Company’s triple net operating leases include the operating lease components contained within our triple net master lease dated November 1, 2013 with GLPI and the triple net master lease assumed in connection with our acquisition of Pinnacle Entertainment, Inc. (primarily land), our individual triple net leases with GLPI for the real estate assets used in the operation of Tropicana Las Vegas Hotel and Casino and Hollywood Casino at Meadows Racetrack, and our individual triple net leases with VICI for the real estate assets used in the operations of Margaritaville Casino Resort and Greektown Casino-Hotel. (5)During 2019, 2020 and during the first quarter of 2021, acquisition costs were included within pre-opening and acquisition costs. Beginning with the quarter ended June 30, 2021, acquisition costs are presented as part of other expenses. (6)Consists principally of interest expense, net; income taxes; depreciation and amortization; and stock-based compensation expense associated with Barstool Sports and our Kansas Entertainment joint venture. We record our portion of Barstool Sports’ net income or loss, including adjustments to arrive at Adjusted EBITDAR, one quarter in arrears. (7)Includes holding gains and losses on our equity securities, which are discussed in Note 19, “Fair Value Measurements.” Additionally, consists of non-recurring acquisition and transaction costs, finance transformation costs associated with the implementation of our new Enterprise Resource Management system and non-recurring restructuring charges (primarily severance) associated with a company-wide initiative, triggered by the COVID-19 pandemic, designed to (i) improve the operational effectiveness across our property portfolio; and (ii) improve the effectiveness and efficiency of our Corporate functional support area.
| For the year ended December 31,
(in millions) | 2021 |  | 2020 |  | 2019
Capital expenditures: |  |  |  |  |
Northeast segment | $ | 144.8 |  |  | $ | 78.0 |  |  | $ | 96.2 |
South segment | 39.0 |  |  | 15.8 |  |  | 29.8 |
West segment | 8.5 |  |  | 8.2 |  |  | 21.2 |
Midwest segment | 19.8 |  |  | 15.1 |  |  | 32.7 |
Interactive segment | 6.3 |  |  | 9.1 |  |  | — |
Other | 25.7 |  |  | 10.8 |  |  | 10.7 |
Total capital expenditures | $ | 244.1 |  |  | $ | 137.0 |  |  | $ | 190.6 |
(in millions) | Northeast |  | South |  | West |  | Midwest |  | Interactive |  | Other (1) |  | Total
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in and advances to unconsolidated affiliates | $ | 0.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 83.8 |  |  | $ | 164.4 |  |  | $ | 6.8 |  |  | $ | 255.1 |
Total assets | $ | 2,283.6 |  |  | $ | 1,224.6 |  |  | $ | 394.8 |  |  | $ | 1,215.8 |  |  | $ | 2,618.3 |  |  | $ | 9,135.0 |  |  | $ | 16,872.1 |
As of December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in and advances to unconsolidated affiliates | $ | 0.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 85.2 |  |  | $ | 149.3 |  |  | $ | 32.2 |  |  | $ | 266.8 |
Total assets | $ | 1,958.4 |  |  | $ | 1,165.4 |  |  | $ | 401.5 |  |  | $ | 1,161.1 |  |  | $ | 434.1 |  |  | $ | 9,546.8 |  |  | $ | 14,667.3 |
As of December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in and advances to unconsolidated affiliates | $ | 0.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 90.9 |  |  | $ | 1.9 |  |  | $ | 35.4 |  |  | $ | 128.3 |
Total assets | $ | 2,273.7 |  |  | $ | 1,397.0 |  |  | $ | 752.1 |  |  | $ | 1,412.2 |  |  | $ | 124.1 |  |  | $ | 8,235.4 |  |  | $ | 14,194.5 |
(1)The real estate assets subject to the Master Leases, which are classified as either property and equipment, operating lease ROU assets, or finance lease ROU assets, are included within the Other category.

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- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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