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v3.23.3

Leases (Tables) | 9 Months Ended
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Sep. 30, 2023
Leases [Abstract] |
Schedule of Maturity Analysis, Operating Leases | The following is a maturity analysis of our operating leases, finance leases and financing obligations as of September 30, 2023:
(in millions) | Operating Leases |  | Finance Leases |  | Financing Obligations
Year ended December 31, |  |  |  |  |
2023 (excluding the nine months ended September 30, 2023) | $ | 148.4 |  |  | $ | 39.7 |  |  | $ | 41.6 |
2024 | 585.2 |  |  | 149.3 |  |  | 166.5 |
2025 | 578.4 |  |  | 144.7 |  |  | 166.6 |
2026 | 579.1 |  |  | 144.7 |  |  | 166.6 |
2027 | 581.9 |  |  | 144.6 |  |  | 166.6 |
Thereafter | 3,889.1 |  |  | 3,366.9 |  |  | 3,996.0 |
Total lease payments | 6,362.1 |  |  | 3,989.9 |  |  | 4,703.9 |
Less: Imputed interest | (2,187.3) |  |  | (1,875.1) |  |  | (2,266.6) |
Present value of future lease payments | 4,174.8 |  |  | 2,114.8 |  |  | 2,437.3 |
Less: Current portion of lease obligations | (277.8) |  |  | (43.2) |  |  | (40.8) |
Long-term portion of lease obligations | $ | 3,897.0 |  |  | $ | 2,071.6 |  |  | $ | 2,396.5 |
Schedule of Maturity Analysis, Finance Leases | The following is a maturity analysis of our operating leases, finance leases and financing obligations as of September 30, 2023:
(in millions) | Operating Leases |  | Finance Leases |  | Financing Obligations
Year ended December 31, |  |  |  |  |
2023 (excluding the nine months ended September 30, 2023) | $ | 148.4 |  |  | $ | 39.7 |  |  | $ | 41.6 |
2024 | 585.2 |  |  | 149.3 |  |  | 166.5 |
2025 | 578.4 |  |  | 144.7 |  |  | 166.6 |
2026 | 579.1 |  |  | 144.7 |  |  | 166.6 |
2027 | 581.9 |  |  | 144.6 |  |  | 166.6 |
Thereafter | 3,889.1 |  |  | 3,366.9 |  |  | 3,996.0 |
Total lease payments | 6,362.1 |  |  | 3,989.9 |  |  | 4,703.9 |
Less: Imputed interest | (2,187.3) |  |  | (1,875.1) |  |  | (2,266.6) |
Present value of future lease payments | 4,174.8 |  |  | 2,114.8 |  |  | 2,437.3 |
Less: Current portion of lease obligations | (277.8) |  |  | (43.2) |  |  | (40.8) |
Long-term portion of lease obligations | $ | 3,897.0 |  |  | $ | 2,071.6 |  |  | $ | 2,396.5 |
Schedule of Maturity Analysis, Financing Obligations | The following is a maturity analysis of our operating leases, finance leases and financing obligations as of September 30, 2023:
(in millions) | Operating Leases |  | Finance Leases |  | Financing Obligations
Year ended December 31, |  |  |  |  |
2023 (excluding the nine months ended September 30, 2023) | $ | 148.4 |  |  | $ | 39.7 |  |  | $ | 41.6 |
2024 | 585.2 |  |  | 149.3 |  |  | 166.5 |
2025 | 578.4 |  |  | 144.7 |  |  | 166.6 |
2026 | 579.1 |  |  | 144.7 |  |  | 166.6 |
2027 | 581.9 |  |  | 144.6 |  |  | 166.6 |
Thereafter | 3,889.1 |  |  | 3,366.9 |  |  | 3,996.0 |
Total lease payments | 6,362.1 |  |  | 3,989.9 |  |  | 4,703.9 |
Less: Imputed interest | (2,187.3) |  |  | (1,875.1) |  |  | (2,266.6) |
Present value of future lease payments | 4,174.8 |  |  | 2,114.8 |  |  | 2,437.3 |
Less: Current portion of lease obligations | (277.8) |  |  | (43.2) |  |  | (40.8) |
Long-term portion of lease obligations | $ | 3,897.0 |  |  | $ | 2,071.6 |  |  | $ | 2,396.5 |
Schedule of Other Information and Supplemental Cash Flow Information Related to Leases | Total payments made under the Triple Net Leases were as follows:
| For the three months ended September 30, |  | For the nine months ended September 30,
(in millions) | 2023 |  | 2022 |  | 2023 |  | 2022
AR PENN Master Lease | $ | 71.1 |  |  | $ | — |  |  | $ | 213.1 |  |  | $ | — |
2023 Master Lease | 58.0 |  |  | — |  |  | 174.1 |  |  | — |
PENN Master Lease | — |  |  | 120.2 |  |  | — |  |  | 360.0 |
Pinnacle Master Lease | 85.3 |  |  | 84.2 |  |  | 254.2 |  |  | 250.1 |
Perryville Lease | — |  |  | 1.9 |  |  | — |  |  | 5.8 |
Meadows Lease | — |  |  | 6.2 |  |  | — |  |  | 18.6 |
Margaritaville Lease | 6.6 |  |  | 5.9 |  |  | 19.6 |  |  | 17.8 |
Greektown Lease | 13.2 |  |  | 12.8 |  |  | 39.0 |  |  | 38.5 |
Morgantown Lease | 0.8 |  |  | 0.8 |  |  | 2.4 |  |  | 2.3 |
Total (1) | $ | 235.0 |  |  | $ | 232.0 |  |  | $ | 702.4 |  |  | $ | 693.1 |
(1)For the three and nine months ended September 30, 2022, rent payable under the Tropicana Lease was nominal. Therefore, it has been excluded from the table above. The Tropicana Lease was terminated on September 26, 2022. Information related to lease term and discount rate was as follows:
| September 30, 2023 |  | December 31, 2022
Weighted-Average Remaining Lease Term |  |  |
Operating leases | 11.4 years |  | 19.1 years
Finance leases | 27.6 years |  | 26.7 years
Financing obligations | 27.8 years |  | 27.5 years
Weighted-Average Discount Rate |  |  |
Operating leases | 7.7 | % |  | 5.8 | %
Finance leases | 5.2 | % |  | 5.2 | %
Financing obligations | 5.2 | % |  | 7.7 | %
The components of lease expense were as follows:
| Location on unaudited Consolidated Statements of Operations |  | For the three months ended September 30, |  | For the nine months ended September 30,
(in millions) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Operating Lease Costs |  |  |  |  |  |  |  |  |
Rent expense associated with triple net operating leases (1) | General and administrative |  | $ | 146.6 |  |  | $ | 31.5 |  |  | $ | 439.0 |  |  | $ | 119.6 |
Operating lease cost (2) | Primarily General and administrative |  | 5.6 |  |  | 4.9 |  |  | 16.9 |  |  | 14.8 |
Short-term lease cost | Primarily Gaming expenses |  | 21.3 |  |  | 19.7 |  |  | 60.2 |  |  | 56.3 |
Variable lease cost (2) | Primarily Gaming expenses |  | 0.8 |  |  | 1.0 |  |  | 2.7 |  |  | 3.3 |
Total |  |  | $ | 174.3 |  |  | $ | 57.1 |  |  | $ | 518.8 |  |  | $ | 194.0 |
Finance Lease Costs |  |  |  |  |  |  |  |  |
Interest on lease liabilities (3) | Interest expense, net |  | $ | 27.7 |  |  | $ | 72.0 |  |  | $ | 83.0 |  |  | $ | 187.2 |
Amortization of ROU assets (3) | Depreciation and amortization |  | 22.0 |  |  | 50.1 |  |  | 65.6 |  |  | 131.0 |
Total |  |  | $ | 49.7 |  |  | $ | 122.1 |  |  | $ | 148.6 |  |  | $ | 318.2 |
Financing Obligation Costs |  |  |  |  |  |  |  |  |
Interest on financing obligations (4) | Interest expense, net |  | $ | 36.8 |  |  | $ | 86.2 |  |  | $ | 110.0 |  |  | $ | 261.0 |
(1)For the three and nine months ended September 30, 2023, pertains to the following operating leases: (i) AR PENN Master Lease; (ii) 2023 Master Lease; (iii) Margaritaville Lease; and (iv) Greektown Lease. For the three and nine months ended September 30, 2022, pertains to the operating lease components contained within the (i) PENN Master Lease (specific to the land and building components associated with the operations of Dayton and Mahoning Valley); (ii) Meadows Lease; (iii) Margaritaville Lease; (iv) Greektown Lease; and (v) Tropicana Lease (which terminated on September 26, 2022). (2)Excludes the operating lease costs and variable lease costs pertaining to our triple net leases with our REIT landlords classified as operating leases, discussed in footnote (1) above. (3)For the three and nine months ended September 30, 2023, pertains to the finance lease components associated with the Pinnacle Master Lease. For the three and nine months ended September 30, 2022, pertains to the finance lease components associated with the (i) PENN Master Lease; (ii) Pinnacle Master Lease; and (iii) Perryville Lease. The finance lease components contained within the PENN Master Lease and the Pinnacle Master Lease consist of the land, inclusive of the variable expense associated with Columbus and Toledo. (4) For the three and nine months ended September 30, 2023, pertains to the components contained within the Pinnacle Master Lease (primarily buildings) and the Morgantown Lease. For the three and nine months ended September 30, 2022, pertains to the components contained within the PENN Master Lease (primarily buildings) inclusive of the variable expense associated with Columbus and Toledo for the financing obligation components, Pinnacle Master Lease (primarily buildings), and the Morgantown Lease. Supplemental cash flow information related to leases was as follows:
| For the nine months ended September 30,
(in millions) | 2023 |  | 2022
Non-cash lease activities: |  |  |
Commencement of operating leases | $ | 3,674.4 |  |  | $ | 39.4 |
Derecognition of operating lease liabilities | $ | 307.7 |  |  | $ | — |
Commencement of finance leases | $ | 33.3 |  |  | $ | 1,417.3 |
Derecognition of finance lease liabilities | $ | 2,933.6 |  |  | $ | — |
Derecognition of finance obligations | $ | 1,567.8 |  |  | $ | — |

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