XML 38 R28.htm IDEA: XBRL DOCUMENT
v3.23.1

Acquisitions (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract] |
Schedule of Allocation of Purchase Price and Adjustments | The following table reflects the preliminary allocation of the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed, with the excess recorded as goodwill.
(in millions) | Estimated fair value
Cash and cash equivalents | $ | 10.1
Accounts receivable | 44.8
Inventory | 25.2
Other current assets | 5.0
Lease right-of-use assets | 13.5
Property and equipment | 3.8
Goodwill | 231.9
Other intangible assets |
Barstool tradename | 420.0
Advertising relationships | 32.0
Other tradenames and brands | 29.0
Customer relationships | 11.0
Other long-term assets | 18.7
Total assets | $ | 845.0 |
Accounts payable, accrued expenses and other current liabilities | $ | 38.7 |
Deferred income taxes | 115.9 |
Other long-term liabilities | 30.4 |
Total liabilities | 185.0 |
Net assets acquired | $ | 660.0 |
Schedule of valuation approaches of intangible assets acquired | The following valuation approaches were utilized to determine the fair value of each intangible asset:
Intangible Asset |  | Valuation Approach
Barstool tradename |  | Relief-from-royalty (variation of income approach)
Advertising relationships |  | With-and-without (variation of income approach)
Other tradenames and brands |  | Relief-from-royalty (variation of income approach)
Customer relationships |  | Replacement cost
Schedule of Actual and Pro Forma Financial Results | The following table includes unaudited pro forma consolidated financial information assuming our acquisition of Barstool had occurred as of January 1, 2022. The pro forma amounts include the historical operating results of PENN and Barstool prior to our acquisition. The pro forma financial information does not necessarily represent the results that may occur in the future. For the three months ended March 31, 2023 and 2022, pro forma adjustments directly attributable to the acquisition include acquisition and transaction related costs of $1.3 million incurred by both PENN and Barstool and a gain on the Barstool Acquisition of $83.4 million. Additionally, for the three months ended March 31, 2023 and 2022, pro forma adjustments included a gain of $3.1 million and $4.1 million, respectively, related to remeasurement and settlement of Barstool put/call options.
| For the three months ended March 31,
(in millions) | 2023 |  | 2022
Revenues | $ | 1,693.0 |  |  | $ | 1,604.8 |
Net income | $ | 439.3 |  |  | $ | 106.6 |

X
- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI https://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(3) -URI https://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
Name: | us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of finite-lived and indefinite-lived intangible assets acquired as part of a business combination. + References No definition available. + Details
Name: | us-gaap_FiniteLivedAndIndefiniteLivedIntangibleAssetsAcquiredAsPartOfBusinessCombinationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4845-128472 + Details
Name: | us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration