BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its majority and wholly-owned subsidiaries and entities. In accordance with authoritative guidance issued by the Financial Accounting Standards Board (the “FASB”) pertaining to consolidation of variable interest entities ("VIE"), the accounts of Salishan-Mohegan are consolidated into the accounts of Mohegan Ventures-NW (refer to Note 12), the accounts of Inspire Integrated Resort are consolidated into the accounts of Mohegan Gaming Advisors (refer to Note 13) and the accounts of NEBW are consolidated into the accounts of Mohegan Lacrosse as Mohegan Ventures-NW, Mohegan Gaming Advisors and Mohegan Lacrosse are deemed to be the primary beneficiaries. A primary beneficiary is defined as the party that has both the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE. To determine whether the Company's interest in a VIE could potentially be significant to the VIE, the Company considers both qualitative and quantitative factors regarding the nature, size and form of its involvement in the VIE. The Company assesses whether it is the primary beneficiary of a VIE or the holder of a significant variable interest in a VIE on an on-going basis. In consolidation, all inter-company balances and transactions were eliminated.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The most significant estimates included in the accompanying consolidated financial statements relate to reserves for doubtful accounts, asset valuation, the liabilities associated with self-insurance and unredeemed Momentum Dollars, contingencies and litigation. Actual results could differ from these estimates.

Reclassifications

Certain amounts in the accompanying consolidated financial statements for fiscal 2016 and 2015 have been reclassified to conform to the 2017 presentation.

Cash and Cash Equivalents

Cash and cash equivalents consist of deposits that can be redeemed on demand and investments with original maturities of less than 90 days. Cash equivalents are carried at cost, which approximates market value. Cash and cash equivalents include all operating cash and in-house funds.

Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents consist of deposits that are contractually restricted as to their withdrawal or use. As of September 30, 2017 and 2016, restricted cash and cash equivalents primarily include cash held by Inspire Integrated Resort in connection with the development and construction of Project Inspire (refer to Note 13).

Receivables

Accounts Receivable

Accounts receivable consists primarily of casino receivables, which represent credit extended to approved casino patrons, and hotel and other non-gaming receivables, as well as development and management fees due from the Cowlitz Tribe in connection with the Cowlitz Project. Accounts receivable are typically non-interest bearing and are initially recorded at cost. The Company maintains a reserve for doubtful collection of these receivables, which primarily relates to casino receivables. This reserve is based on the Company’s estimate of the probability that the receivables will be collected. The Company assesses the adequacy of this reserve by continuously evaluating historical experience, creditworthiness of the related patron and all other available information. A receivable is charged off against the reserve when the Company believes it is probable the receivable will not be recovered. The Company believes that there is no concentration of credit risk for which a reserve has not been established. Future business or economic trends could affect the collectability of these receivables and the related reserve.

Long-Term Receivables

Long-term receivables, which are included in other assets, net, in the accompanying consolidated balance sheets, consist primarily of receivables from affiliates and others.

Long-term receivables from affiliates consist of reimbursable costs and expenses advanced by Salishan-Mohegan on behalf of the Cowlitz Tribe for the Cowlitz Project (refer to Note 12). The Salishan-Mohegan receivables were payable upon: (1) the related property being taken into trust by the United States Department of the Interior and (2) the receipt of necessary financing for the development of the Cowlitz Project. In March 2015, the Cowlitz Project site was taken into trust by the United States Department of the Interior for the benefit of the Cowlitz Tribe. In addition, in December 2015, CTGA obtained financing for the Cowlitz Project. The financing provided funding for construction of the Cowlitz Project and a partial repayment of the Salishan-Mohegan receivables. The Company maintains a reserve for doubtful collection of the remaining Salishan-Mohegan receivables, which is based on the Company's estimate of the probability that the receivables will be collected. The Company assesses the adequacy of this reserve on a quarterly basis. In fiscal 2016, the Company reduced the reserve following the financing of the Cowlitz Project. The Company further reduced the reserve in fiscal 2017 following the opening of ilani Casino Resort. Future developments relating to the Cowlitz Project, including cash flows generated by the casino resort, CTGA's debt covenant restrictions and other matters affecting the project could affect the collectability of these receivables and the related reserve.

Long-term receivables from others consist of funds loaned to a third-party in connection with the Cowlitz Project and a loan to a tenant of Mohegan Sun. The Company considered maintaining a reserve for doubtful collection of these receivables based on the Company's estimate of the probability that the receivables will be collected considering historical experience, creditworthiness of the related third-party and tenant and all other available information; however, no such reserve was deemed necessary as of September 30, 2017 and 2016.

A receivable is charged off against the reserve when the Company believes it is probable the receivable will not be recovered. The Company believes that there is no concentration of credit risk for which a reserve has not been established.

The following table presents a reconciliation of long-term receivables and the related reserve for doubtful collection of these long-term receivables (in thousands):



	Long-Term Receivables
	Affiliates		Others			Total
Balance, September 30, 2016 (1)	$	81,926	$	3,196		$	85,122
Additions:
Advances and other loans, including interest receivable	10,378		2,278			12,656
Deductions:
Reclassification to current portion	—		(188		)	(188		)
Balance, September 30, 2017 (1)	$	92,304	$	5,286		$	97,590

__________


(1)	Includes interest receivable of $61.5 million and $50.8 million as of September 30, 2017 and 2016, respectively.



	Reserve for Doubtful Collection of Long-Term Receivables
	Affiliates			Others		Total
Balance, September 30, 2016	$	16,385		$	—	$	16,385
Additions:
Charges to bad debt expense	2,075			—		2,075
Deductions:
Adjustment (1)	(9,230		)	—		(9,230		)
Balance, September 30, 2017	$	9,230		$	—	$	9,230

__________


(1)	Represents a reduction to the reserve for doubtful collection of the Salishan-Mohegan receivables.

Inventories

Inventories are stated at the lower of cost or market value and consist primarily of food and beverage, retail, hotel and operating supplies. Cost is determined using the average cost method. The Company reduces the carrying value of slow-moving inventory to net realizable value, based on the Company’s estimate of the amount of inventory that may not be utilized in future operations. Future business trends could affect the timely use of inventories.

Property and Equipment

Property and equipment are stated at cost. Depreciation is recognized over the estimated useful lives of the assets, other than land, on a straight-line basis. Leasehold improvements are amortized over the shorter of the lease terms or the estimated useful lives of the improvements. Estimated useful lives by asset categories are as follows:



Buildings and land improvements	40 years
Furniture and equipment	3 - 7 years

The costs of significant improvements are capitalized. Costs of normal repairs and maintenance are expensed as incurred. Gains or losses on disposition of property and equipment are reflected in the accompanying consolidated statements of income and comprehensive income.

Property and equipment are assessed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. If it is determined that the carrying amounts may not be recoverable based on current and future levels of income and cash flows, as well as other factors, an impairment loss will be recognized at such time. As of September 30, 2017 and 2016, the Company assessed its property and equipment for impairment and determined that no impairment existed.

Capitalized Interest

Interest costs incurred in connection with major development and construction projects are capitalized and included in the cost of the related project. Under instances where no debt is directly incurred in connection with a project, interest is capitalized on amounts expended on the project utilizing the weighted-average interest cost of the Company’s outstanding borrowings. Capitalization of interest ceases when a project is substantially completed or development activity is suspended for an extended period of time.

Goodwill

In accordance with authoritative guidance issued by the FASB pertaining to goodwill, the goodwill associated with the acquisition of the Pennsylvania Facilities is not subject to amortization, but is assessed at least annually for impairment by comparing its fair value to its carrying value. The fair value is determined utilizing an income approach based on projected discounted cash flows from the Pennsylvania Facilities, exclusive of capital expenditure requirements. If the carrying value of the goodwill exceeds its fair value, an impairment loss will be recognized to the extent that the carrying value of the goodwill exceeds its implied fair value. The Company utilizes the income approach which requires certain assumptions regarding future revenues and expenses, discount rates and the terminal value using a market multiple of the Pennsylvania Facilities. As of September 30, 2017 and 2016, the Company assessed the goodwill for impairment and determined that no impairment existed.

Other Intangible Assets

Intangible assets relate primarily to the Pennsylvania Facilities and Mohegan Sun.

In connection with the acquisition of the Pennsylvania Facilities, the Company recorded a slot machine license intangible asset of $214.0 million. In October 2006, a one-time slot machine license fee of $50.0 million was paid to the Pennsylvania Gaming Control Board (the “PGCB”) and added to the existing slot machine license intangible asset. In June 2010, a one-time table game certificate fee of $16.5 million was paid to the PGCB and classified as an intangible asset. The slot machine license and table game certificate intangible assets, with indefinite useful lives, are assessed as a single unit of accounting at least annually for impairment by comparing the fair value of the recorded assets to their carrying value. Their fair value is determined utilizing an income approach based on projected discounted cash flows from the Pennsylvania Facilities, exclusive of a required rate of return of all other assets and exclusive of capital expenditure requirements. If the carrying value exceeds the fair value, an impairment loss will be recognized to the extent that the carrying value exceeds the fair value. The Company utilizes the income approach which requires certain assumptions regarding future revenues and expenses, discount rates and the terminal value using a perpetual growth rate of the Pennsylvania Facilities. As of September 30, 2017 and 2016, the Company assessed the intangible assets for impairment and determined that no impairment existed.

In connection with a relinquishment agreement (refer to Note 11), Trading Cove Associates (“TCA”) granted the Company an exclusive, irrevocable, perpetual, world-wide and royalty-free license with respect to trademarks and other similar rights, including the “Mohegan Sun” name. The Mohegan Sun trademark intangible asset of $119.7 million is deemed to have an indefinite useful life and is assessed at least annually for impairment by comparing its fair value to its carrying value. The fair value is determined utilizing the income approach – relief from royalty method based on projected revenues from Mohegan Sun and Mohegan Sun Pocono. If the carrying value exceeds the fair value, an impairment loss will be recognized to the extent that the carrying value exceeds the fair value. The Company utilizes the income approach which requires certain assumptions regarding future revenues, discount rates, royalty rate and the terminal value using a perpetual growth rate of Mohegan Sun and Mohegan Sun Pocono. As of September 30, 2017 and 2016, the Company assessed the Mohegan Sun trademark for impairment and determined that no impairment existed.

Debt Issuance Costs, Discounts and Premiums

Debt issuance costs incurred in connection with the issuance of revolving debt are capitalized and amortized to interest expense based on the related debt agreements on a straight-line basis. Unamortized amounts are included in other assets, net in the accompanying consolidated balance sheets. Debt issuance costs incurred in connection with the issuance of non-revolving debt are recorded as a reduction to the carrying amount of the related debt and amortized to interest expense based on the effective interest method. Premiums received in connection with the issuance of debt are recorded as an increase to the carrying amount of the related debt and amortized to interest expense based on the effective interest method.

Self-insurance Accruals

The Company is self-insured up to certain limits for costs associated with workers’ compensation, general liability and employee medical coverage. Insurance claims and reserves include accruals of estimated settlements of known claims, as well as accruals of estimates of incurred but not reported claims. These accruals are included in other current liabilities in the accompanying consolidated balance sheets. In estimating self-insurance accruals, the Company considers historical loss experiences and expected levels of costs per claim. Claims are accounted for based on estimates of undiscounted claims, including claims incurred but not reported. The Company believes that this method provides a consistent and effective way to measure these liabilities; however, changes in health care costs, accident frequency and severity and other factors could materially impact estimated liabilities. The Company continuously monitors estimates and makes adjustments when necessary.

Unredeemed Momentum Dollars

The Company maintains an accrual for unredeemed Momentum Dollars. This accrual is based on the estimated cost of Momentum Dollars expected to be redeemed as of the respective balance sheet date. The Company assesses the adequacy of this accrual by periodically evaluating historical redemption experiences and projected trends related to the accrual. Actual results could differ from these estimates.

Redemption Liability

In fiscal 2017, in accordance with authoritative guidance issued by the FASB pertaining to the accounting for contingencies, the Company recorded a redemption liability based on the present value of the redemption price, determined by binding arbitration, Salishan-Mohegan agreed to pay Salishan Company for its membership interest redemption and withdrawal from Salishan-Mohegan (refer to Note 12). The redemption liability was discounted utilizing the Company’s credit adjusted risk-free investment rate. The Company recognizes accretion to the redemption liability to reflect the impact of the time value of money within its consolidated statements of income and comprehensive income.

Fair Value of Financial Instruments

The fair value amounts presented below are reported to satisfy disclosure requirements pursuant to authoritative guidance issued by the FASB pertaining to disclosures about fair values of financial instruments and are not necessarily indicative of amounts that the Company could realize in a current market transaction.

The Company applies the following fair value hierarchy, which prioritizes the inputs utilized to measure fair value into three levels:


•	Level 1 - Quoted prices for identical assets or liabilities in active markets;


•	Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets or valuations based on models where the significant inputs are observable or can be corroborated by observable market data; and


•	Level 3 - Valuations based on models where the significant inputs are unobservable. The unobservable inputs reflect the Company's estimates or assumptions that market participants would utilize in pricing such assets or liabilities.

The Company's assessment of the significance of a particular input requires judgment and may affect the valuation of financial assets and liabilities and their placement within the fair value hierarchy.

The carrying amount of cash and cash equivalents, restricted cash and cash equivalents, receivables, trade payables and promissory notes and certain credit facilities approximates fair value. The estimated fair value of the Company's financing facilities and notes were as follows (in thousands):



	September 30, 2017
	Carrying Value		Fair Value
Senior Secured Credit Facility - Term Loan A	$	387,523	$	396,912
Senior Secured Credit Facility - Term Loan B	$	761,039	$	785,930
2016 7 7/8% Senior Unsecured Notes	$	487,617	$	534,375
Mohegan Expo Credit Facility - Term Loan	$	13,017	$	14,700

The estimated fair values of the Company's financing facilities and notes were based on Level 2 inputs (quoted market prices or prices of similar instruments) on or about September 30, 2017.

Foreign Currency

The local currency is the functional currency for Inspire Integrated Resort. For local currency functional locations, assets and liabilities are translated at the end-of-period rates, while revenue and expenses are translated at average rates in effect during the period. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of accumulated other comprehensive income. Translation adjustments resulting from this process are credited or charged to other comprehensive income. Other assets held overseas are remeasured into U.S. dollars at end-of-period exchange rates. Gains or losses from foreign currency remeasurements are included in other income (expense), net.

Accumulated Other Comprehensive Income and Comprehensive Income

As of September 30, 2017 and 2016, accumulated other comprehensive income consisted solely of foreign currency translation adjustments. Comprehensive income included net income attributable to the Mohegan Tribal Gaming Authority and all other non-stockholder changes in equity for the fiscal years ended September 30, 2017 and 2016.

Revenue Recognition

The Company recognizes gaming revenues as amounts wagered less prizes paid out. Revenues from food and beverage, hotel, retail, entertainment and other services are recognized at the time such service is performed. Minimum rental revenues are recognized on a straight-line basis over the terms of the related leases. Percentage rental revenues are recognized in the periods in which the tenants exceed their respective percentage rent thresholds. The Company recognizes development fees pursuant to the respective development agreement, typically as a percentage of construction costs incurred during the period. Management fees are recognized pursuant to the respective management agreement, usually as a percentage of earnings during the period.

Promotional Allowances

The Company operates a program, without membership fees, for patrons at Mohegan Sun, Mohegan Sun Pocono and its managed property, Resorts Atlantic City. This program provides complimentary food and beverage, hotel, retail, entertainment and other amenities to patrons based on Momentum Dollars that are awarded for patrons’ gaming activities. Momentum Dollars may be utilized to purchase, among other things, items at restaurants and retail stores located within Mohegan Sun, Mohegan Sun Pocono and Resorts Atlantic City. Momentum Dollars may also be utilized at The Shops at Mohegan Sun and the Mohegan Sun gasoline and convenience center, as well as to purchase hotel services and tickets to entertainment events held at facilities located at Mohegan Sun, Mohegan Sun Pocono and Resorts Atlantic City. The retail value of complimentary items redeemed at facilities operated by the Company is included in gross revenues and then deducted as promotional allowances to arrive at net revenues. The cost associated with reimbursing third-parties for the value of complimentary items redeemed at third-party outlets is included in gaming costs and expenses.

In addition, the Company offers ongoing promotional coupons to patrons for the purchase of food and beverage, hotel and retail amenities offered at Mohegan Sun and Mohegan Sun Pocono. The retail value of coupons redeemed at facilities operated by the Company is included in gross revenues and then deducted as promotional allowances to arrive at net revenues. The cost associated with reimbursing third-parties for the value of coupons redeemed at third-party outlets is included in gaming costs and expenses.

The retail value of promotional allowances was included in gross revenues as follows (in thousands):



	For the Fiscal Years Ended
	September 30, 2017		September 30, 2016		September 30, 2015
Food and beverage	$	40,657	$	41,800	$	42,192
Hotel	17,873		15,364		15,142
Retail, entertainment and other	46,817		39,429		40,012
Total	$	105,347	$	96,593	$	97,346

The estimated cost of promotional allowances was included in gaming costs and expenses as follows (in thousands):



	For the Fiscal Years Ended
	September 30, 2017		September 30, 2016		September 30, 2015
Food and beverage	$	31,680	$	33,536	$	35,122
Hotel	10,790		8,615		8,398
Retail, entertainment and other	43,402		34,499		35,559
Total	$	85,872	$	76,650	$	79,079

In certain circumstances, the Company also offers discounts on patron losses and cash inducements at Mohegan Sun and Mohegan Sun Pocono, which are recognized as reductions to gaming revenues. Reductions to gaming revenues related to discounts provided on patron losses totaled $11.9 million, $15.9 million and $9.7 million for the fiscal years ended September 30, 2017, 2016 and 2015, respectively. Reductions to gaming revenues related to Momentum Dollars redeemed for cash totaled $1.3 million, $1.5 million and $1.4 million for the fiscal years ended September 30, 2017, 2016 and 2015, respectively.

Gaming Costs and Expenses

Gaming costs and expenses primarily include portions of gaming revenues that must be paid to the State of Connecticut and the PGCB. Gaming costs and expenses also include, among other things, payroll costs, expenses associated with the operation of slot machines, table games, poker, live harness racing and racebook, certain marketing expenditures and promotional expenses related to Momentum Dollar and coupon redemptions.

Advertising Costs and Expenses

Production costs are expensed the first time the advertisement takes place. Prepaid rental fees associated with billboard advertisements are capitalized and amortized over the terms of the related rental agreements. Advertising costs and expenses totaled $27.4 million, $27.3 million and $27.0 million for the fiscal years ended September 30, 2017, 2016 and 2015, respectively. As of September 30, 2017 and 2016, prepaid advertising was $312,000 and $222,000, respectively.

Pre-Opening Costs and Expenses

In accordance with authoritative guidance issued by the FASB pertaining to the reporting on the costs of start-up activities, pre-opening costs and expenses are expensed as incurred.

Corporate Revenues and Expenses

Corporate revenues, which are included in retail, entertainment and other revenues, consist primarily of fees earned in connection with various development, management and consulting arrangements. Corporate costs and expenses consist primarily of costs associated with various diversification initiatives, which are expensed as incurred, except when reimbursable by third-parties, as well as allocations of certain governmental and administrative costs, payroll costs, professional fees and various other expenses not directly related to the Company’s operations at Mohegan Sun or Mohegan Sun Pocono. In fiscal 2017 and 2016, corporate costs and expenses included share-based compensation. Share-based compensation is measured at the measurement date, based on the calculated fair value of the award, and is recognized over the requisite service period. Share-based compensation totaled $7.6 million and $6.1 million for the fiscal years ended September 30, 2017 and 2016, respectively. Corporate costs and expenses pertaining to certain pre-opening activities are expensed as incurred and recorded within pre-opening costs and expenses.

Investments in Unconsolidated Affiliates

The Company, through its indirect wholly-owned subsidiary, MGA Holding NJ, holds a 10% ownership interest in Resorts Atlantic City and its associated gaming activities, including online gaming in the State of New Jersey. The Company also, through its wholly-owned subsidiary, MGBR, holds a 7.4% membership interest in an unaffiliated third-party limited liability company. In addition, the Company holds a 50% membership interest in MMCT. The Company's investments in Resorts Atlantic City, MGBR and MMCT are accounted for under the equity method as the Company has significant influence in these entities. The Company does not consolidate the accounts of MMCT as the Company determined that it does not qualify as the primary beneficiary of MMCT primarily because it does not have the ability to direct the activities that most significantly impacted MMCT’s economic performance without input from the MPT.

Additional Cash Flow Information

On September 30, 2016 and 2015, the bank that administers the Company’s debt service payments for its senior secured credit facilities made required principal payments on behalf of the Company totaling $5.2 million and $4.4 million, respectively, but did not accordingly debit the Company’s bank account for these payments. As of September 30, 2016 and 2015, the Company reflected these transactions as reductions to current portion of long-term debt and corresponding increases to other current liabilities. On the respective following banking days, the bank withdrew the payments from the Company’s bank account, resulting in reductions to the Company’s cash and cash equivalents and other current liabilities. Accordingly, the Company classified the payments made by the bank as non-cash financing outflows and the related amounts owed to the bank as non-cash financing inflows in the accompanying consolidated statements of cash flows for the fiscal years ended September 30, 2016 and 2015.

In addition, in connection with the financing for the Cowlitz Project, the Cowlitz Tribe repaid $6.0 million of principal outstanding under the 2012 Mohegan Tribe Minor's Trust Promissory Note on behalf of Salishan-Mohegan. Accordingly, the Company classified this payment as a non-cash financing outflow and the related reduction to the Salishan-Mohegan receivables as a non-cash investing inflow in the accompanying consolidated statement of cash flows for the fiscal year ended September 30, 2016.

Income Taxes

The Tribe is a sovereign Indian nation with independent legal jurisdiction over its people and land. Like other sovereign governments, the Tribe and its entities, including the Company, are not subject to federal, state or local income taxes.

Seasonality

The gaming market in the Northeastern United States is seasonal in nature, with peak gaming activities often occurring at Mohegan Sun and Mohegan Sun Pocono during the months of May through August. Accordingly, the Company's operating results for the fiscal year ended September 30, 2017 are not necessarily indicative of operating results for interim periods.

New Accounting Standards

The following accounting standards were adopted during the fiscal year ended September 30, 2017:

In August 2014, the FASB issued an accounting standards update which provides guidance on determining when and how to disclose going concern uncertainties in financial statements. The update requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date financial statements are issued. It also requires management to provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. This guidance is required for annual reporting periods ending after December 15, 2016, and interim reporting periods thereafter, with early application permitted. The Company adopted this guidance in its first quarter of fiscal 2017 and its adoption did not impact the Company's financial statements.

In February 2015, the FASB issued an accounting standards update which amends existing requirements applicable to reporting entities that are required to evaluate whether certain legal entities should be consolidated. This guidance is required to be applied either on a retrospective or modified retrospective basis and is effective for annual reporting periods beginning after December 15, 2015, and interim reporting periods thereafter, with early application permitted. The Company adopted this guidance in its first quarter of fiscal 2017 and its adoption did not impact the Company's financial statements.

In August 2016, the FASB issued an accounting standards update which clarifies the classification and presentation of several categories in the statement of cash flows in an attempt to reduce the current diversity in practice. The update also specifies that whenever cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification and presentation will depend on the predominant source or use. This guidance is required to be applied on a retrospective basis and is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods thereafter, with early application permitted. The Company adopted this guidance in its first quarter of fiscal 2017 and, as a result, payments of tender offer and repurchase costs totaling $50.3 million and payments of discounts totaling $15.5 million were classified and presented within cash flows provided by financing activities rather than cash flows provided by operating activities in the accompanying consolidated statement of cash flows for the fiscal year ended September 30, 2017. The adoption of this guidance did not materially impact the accompanying consolidated statement of cash flows for the fiscal years ended September 30, 2016 and 2015.

The following accounting standards will be adopted in future reporting periods:

In May 2014, the FASB issued an accounting standards update on revenue recognition pertaining to all contracts with customers. The update requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenues and cash flows arising from contracts with customers. This guidance is required to be applied on a retrospective basis, using one of two methodologies, and was to be effective for annual reporting periods beginning after December 15, 2016, with early application not being permitted. However, in July 2015, the FASB deferred the effective date by one year. This guidance is now effective for annual and interim reporting periods beginning after December 15, 2017. Entities are permitted to adopt the guidance as of the original effective date. The FASB has since issued several accounting standards updates to further clarify this guidance including: (1) principal versus agent considerations, (2) identifying performance obligations and licensing, (3) narrow-scope improvements and practical expedients and (4) technical corrections and improvements. The Company is currently assessing the impact the adoption of this guidance will have on its consolidated financial statements and accompanying notes. Under the new guidance, the Company believes that it will no longer be permitted to recognize revenues for complimentary goods and services that are provided to patrons to incentivize gaming activities as gross revenues with a corresponding offset to promotional allowances to arrive at net revenues. Instead, the Company expects that a majority of such revenues, that are complimentary in nature, will be recorded as an offset to gaming revenues. Under the new guidance, the accounting for Momentum Dollars awarded under the Company’s loyalty rewards program will also change. Momentum Dollars earned by patrons through past revenue transactions will be identified as separate performance obligations and recorded as reductions to gaming revenues when earned at the retail value of such benefits owed to the patrons (less estimated breakage). Upon redemption of these benefits by patrons and the fulfillment of the related performance obligations by the Company, revenues will be recorded within the revenue segment that provided the goods or services (food and beverage, hotel or retail, entertainment and other). In addition, this guidance provides substantial revision to annual and interim financial statement disclosures. This guidance allows for either full retrospective adoption, meaning that the guidance should be applied to all periods presented, or modified retrospective adoption, meaning that the guidance should be applied only to the most current period presented with the cumulative effect of its adoption recognized at the date of initial application. The Company expects to adopt this guidance on a full retrospective basis.

In February 2016, the FASB issued new guidance pertaining to leases based on the principle that entities should recognize assets and liabilities arising from leases. This guidance does not significantly change lessees’ recognition, measurement and presentation of expenses and cash flows from previous accounting standards. Leases are classified as operating or financing. The primary change in the guidance is the requirement for entities to recognize right-of-use assets representing the right to use leased assets and lease liabilities for payments during the term of operating lease arrangements. Lessees are permitted to make an accounting policy election to not recognize assets and liabilities for leases with terms of twelve months or less. Lessors' treatment of leases under this guidance is largely unchanged from previous accounting standards. In addition, the guidance expands disclosure requirements for lease arrangements. This guidance is required to be applied on a modified retrospective basis, which includes a number of practical expedients, and is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods thereafter, with early application permitted. The Company is currently evaluating the impact that this guidance will have on its financial statements.

In October 2016, the FASB issued an accounting standards update which modifies existing guidance with respect to the method utilized by a decision maker, which holds an indirect interest in a VIE through a common control party, to determine whether it is the primary beneficiary of the VIE. This guidance is required for annual reporting periods beginning after December 15, 2016, and interim reporting periods thereafter. The Company plans to adopt this guidance in its first quarter of fiscal 2018 and its adoption is not expected to impact the Company's financial statements.

In November 2016, the FASB issued an accounting standards update which clarifies the classification and presentation of restricted cash in the statement of cash flows. The update requires that a statement of cash flows explain the total change during the period in cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. This guidance is required to be applied on a retrospective basis and is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods thereafter, with early application permitted. The Company is currently evaluating the impact that this guidance will have on its statement of cash flows.

In January 2017, the FASB issued an accounting standards update which eliminates the second step in the goodwill impairment test that requires an entity to determine the implied fair value of the reporting unit's goodwill. Instead, an entity would recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. This guidance is required to be applied to goodwill impairment tests conducted for annual reporting periods beginning after December 15, 2019, and interim reporting periods thereafter, with early adoption permitted. The Company is currently evaluating the impact that this guidance will have on its financial statements.