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NEW ACCOUNTING STANDARDS (Tables)
 9 Months Ended
Jun. 30, 2019
Accounting Changes and Error Corrections [Abstract]  
Schedule of New Accounting Pronouncements
The adoption of ASC 606 did not have a material effect on the Company’s net income for the three months and nine months ended June 30, 2019.
The cumulative-effect of initially adopting ASC 606 was as follows (in thousands):
 
September 30, 2018
 
ASC 606 Adjustment
 
October 1, 2018
Other current liabilities
$
123,303

 
$
41,575

 
$
164,878

Retained earnings
$
250,707

 
$
(41,575
)
 
$
209,132

The impact of adopting ASC 606 on the accompanying condensed consolidated balance sheet as of June 30, 2019 was as follows (in thousands):
 
Balance under ASC 606
 
Balance without ASC 606
 
Impact of Change
 
June 30, 2019
 
June 30, 2019
 
Higher/ (Lower)
Other current liabilities
$
179,661

 
$
140,597

 
$
39,064

Retained earnings
$
178,892

 
$
217,956

 
$
(39,064
)
    






















The impact of adopting ASC 606 on the accompanying condensed consolidated statement of income for the three months ended June 30, 2019 was as follows (in thousands):
 
 
 
 
 
Promotional
 
Promotional
 
 
 
Gross vs. Net
 
 
 
Impact of
 
Balance
 
Loyalty
 
Allowances
 
Allowances
 
Cash
 
Presentation
 
Balance
 
Change
 
under
 
Points
 
(Discretionary)
 
(Non-Discretionary)
 
Giveaways
 
and Other
 
without
 
Higher/
 
ASC 606
 
(1)
 
(2)
 
(2)
 
(3)
 
(4)
 
ASC 606
 
(Lower)
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gaming
$
235,418

 
$
599

 
$
(41,089
)
 
$
(14,690
)
 
$
(1,568
)
 
$
5,427

 
$
286,739

 
$
(51,321
)
Food and beverage
37,171

 
—

 
10,266

 
—

 
—

 
981

 
25,924

 
11,247

Hotel
23,794

 
—

 
6,130

 
—

 
—

 
176

 
17,488

 
6,306

Retail, entertainment and other
51,224

 
—

 
4,444

 
1,241

 
—

 
(2,310
)
 
47,849

 
3,375

Gross revenues
347,607

 
599

 
(20,249
)
 
(13,449
)
 
(1,568
)
 
4,274

 
378,000

 
(30,393
)
Less-Promotional allowances
—

 
—

 
21,438

 
5,486

 
—

 
785

 
(27,709
)
 
27,709

Net revenues
347,607

 
599

 
1,189

 
(7,963
)
 
(1,568
)
 
5,059

 
350,291

 
(2,684
)
Operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gaming
135,238

 
206

 
(12,755
)
 
(30,644
)
 
(1,568
)
 
5,720

 
174,279

 
(39,041
)
Food and beverage
29,080

 
—

 
13,944

 
9,340

 
—

 
981

 
4,815

 
24,265

Hotel
12,052

 
—

 
—

 
2,896

 
—

 
176

 
8,980

 
3,072

Retail, entertainment and other
22,934

 
—

 
—

 
10,445

 
—

 
(1,927
)
 
14,416

 
8,518

Advertising, general and administrative
53,534

 
—

 
—

 
—

 
—

 
109

 
53,425

 
109

Corporate
13,839

 
—

 
—

 
—

 
—

 
—

 
13,839

 
—

Depreciation and amortization
22,810

 
—

 
—

 
—

 
—

 
—

 
22,810

 
—

Other, net
2,910

 
—

 
—

 
—

 
—

 
—

 
2,910

 
—

Total operating costs and expenses
292,397

 
206

 
1,189

 
(7,963
)
 
(1,568
)
 
5,059

 
295,474

 
(3,077
)
Income from operations
$
55,210

 
$
393

 
$
—

 
$
—

 
$
—

 
$
—

 
$
54,817

 
$
393










The impact of adopting ASC 606 on the accompanying condensed consolidated statement of income for the nine months ended June 30, 2019 was as follows (in thousands):
 
 
 
 
 
Promotional
 
Promotional
 
 
 
Gross vs. Net
 
 
 
Impact of
 
Balance
 
Loyalty
 
Allowances
 
Allowances
 
Cash
 
Presentation
 
Balance
 
Change
 
under
 
Points
 
(Discretionary)
 
(Non-Discretionary)
 
Giveaways
 
and Other
 
without
 
Higher/
 
ASC 606
 
(1)
 
(2)
 
(2)
 
(3)
 
(4)
 
ASC 606
 
(Lower)
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gaming
$
669,172

 
$
2,114

 
$
(110,772
)
 
$
(47,867
)
 
$
(5,827
)
 
$
16,602

 
$
814,922

 
$
(145,750
)
Food and beverage
105,485

 
—

 
31,264

 
—

 
—

 
2,955

 
71,266

 
34,219

Hotel
68,776

 
—

 
18,204

 
—

 
—

 
508

 
50,064

 
18,712

Retail, entertainment and other
131,371

 
—

 
11,421

 
4,130

 
—

 
(5,896
)
 
121,716

 
9,655

Gross revenues
974,804

 
2,114

 
(49,883
)
 
(43,737
)
 
(5,827
)
 
14,169

 
1,057,968

 
(83,164
)
Less-Promotional allowances
—

 
—

 
53,445

 
18,046

 
—

 
2,302

 
(73,793
)
 
73,793

Net revenues
974,804

 
2,114

 
3,562

 
(25,691
)
 
(5,827
)
 
16,471

 
984,175

 
(9,371
)
Operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gaming
389,872

 
(405
)
 
(16,186
)
 
(86,925
)
 
(5,827
)
 
17,309

 
481,906

 
(92,034
)
Food and beverage
81,611

 
—

 
19,748

 
24,259

 
—

 
2,955

 
34,649

 
46,962

Hotel
31,881

 
—

 
—

 
7,878

 
—

 
508

 
23,495

 
8,386

Retail, entertainment and other
63,203

 
—

 
—

 
29,097

 
—

 
(4,660
)
 
38,766

 
24,437

Advertising, general and administrative
149,664

 
—

 
—

 
—

 
—

 
359

 
149,305

 
359

Corporate
38,728

 
—

 
—

 
—

 
—

 
—

 
38,728

 
—

Depreciation and amortization
92,682

 
—

 
—

 
—

 
—

 
—

 
92,682

 
—

Other, net
6,357

 
—

 
—

 
—

 
—

 
—

 
6,357

 
—

Total operating costs and expenses
853,998

 
(405
)
 
3,562

 
(25,691
)
 
(5,827
)
 
16,471

 
865,888

 
(11,890
)
Income from operations
$
120,806

 
$
2,519

 
$
—

 
$
—

 
$
—

 
$
—

 
$
118,287

 
$
2,519

The items most significantly impacted by the adoption of ASC 606 were as follows:
(1) ASC 606 modified the accounting related to loyalty points. The Company’s loyalty reward programs allow patrons to utilize their reward membership cards to earn loyalty points that are redeemable for complimentary items such as food and beverage, lodging and retail products. Under ASC 606, the Company is required to utilize a deferred revenue model to reduce gaming revenues by the estimated fair value of loyalty points earned by patrons and recognize the related revenues when such loyalty points are redeemed. The deferred revenue liability is based on the estimated stand-alone selling price (“SSP”) of loyalty points earned after factoring in the likelihood of redemption. Prior to the adoption of ASC 606, the liability for unredeemed loyalty points was estimated based on expected redemption rates and estimated costs of the goods and services to be provided.
(2) ASC 606 modified the accounting related to promotional allowances. The Company no longer recognizes revenues for complimentary items provided to patrons or for goods and services provided to patrons in connection with loyalty point redemptions as gross revenues with a corresponding offset to promotional allowances to arrive at net revenues. The majority of such amounts previously included within promotional allowances now offset gaming revenues based on an allocation of revenues to performance obligations utilizing SSP. These changes resulted in the elimination of promotional allowances and the reclassification of revenues between the various revenue line items.
(3) ASC 606 modified the accounting related to cash giveaways. The Company now records cash giveaways as a reduction to gaming revenues. Prior to the adoption of ASC 606, the Company recorded cash giveaways as expenses. This change resulted in decreases in both gaming revenues and expenses.
    
(4) ASC 606 modified gross versus net presentation related to certain fees. The Company now records mandatory service charges on food and beverage items and wide area progressive operator fees on a gross basis, with amounts received from patrons recorded as revenues and the corresponding amounts paid recorded as expenses. This change resulted in increases in both revenues and expenses.
Disaggregation of Revenue
Revenue disaggregation by geographic location and revenue type for the three months ended June 30, 2019 was as follows (in thousands):
 
 
 
 
 
 
 
 
 
 
 
Connecticut
 
Pennsylvania
 
Canada
 
Other
 
 
(Mohegan Sun)
 
(Mohegan Sun Pocono)
 
(MGE Niagara) (1) (2)
 
(Corporate and Other)
Gaming
 
$
165,968

 
$
55,199

 
$
14,251

 
$
—

Food and beverage
 
27,941

 
5,929

 
3,391

 
(90
)
Hotel
 
20,885

 
2,163

 
747

 
(1
)
Retail, entertainment and other
 
36,251

 
2,102

 
2,899

 
406

Management and development
 
—

 
—

 
—

 
9,626

Net revenues
 
$
251,045

 
$
65,393

 
$
21,288

 
$
9,941

_________
(1)
Represents revenues from the Niagara Gaming Bundle from June 11, 2019 through June 30, 2019.
(2)
Gaming revenues represent revenues earned under the COSA (refer to Note 2).
Revenue disaggregation by geographic location and revenue type for the nine months ended June 30, 2019 was as follows (in thousands):
 
 
 
 
 
 
 
 
 
 
 
Connecticut
 
Pennsylvania
 
Canada
 
Other
 
 
(Mohegan Sun)
 
(Mohegan Sun Pocono)
 
(MGE Niagara) (1) (2)
 
(Corporate and Other)
Gaming
 
$
496,281

 
$
158,640

 
$
14,251

 
$
—

Food and beverage
 
85,156

 
17,121

 
3,391

 
(183
)
Hotel
 
62,094

 
5,938

 
747

 
(3
)
Retail, entertainment and other
 
98,584

 
5,726

 
2,899

 
1,165

Management and development
 
—

 
—

 
—

 
23,177

Net revenues
 
$
742,115

 
$
187,425

 
$
21,288

 
$
24,156

_________
(1)
Represents revenues from the Niagara Gaming Bundle from June 11, 2019 through June 30, 2019.
(2)
Gaming revenues represent revenues earned under the COSA (refer to Note 2).
Contract with Customer
The following table summarizes these liabilities (in thousands):
 
June 30, 2019
 
October 1, 2018
Outstanding gaming chips and slot tickets liability
$
8,604

 
$
3,298

Loyalty points deferred revenue liability
41,660

 
42,314

Patron advances and other liability
26,534

 
17,530

Total
$
76,798

 
$
63,142