Financial Reporting By Business Segments

9 Months Ended

Sep. 30, 2018

Financial Reporting By Business Segments

15. FINANCIAL REPORTING BY BUSINESS SEGMENTS:

The Company’s operations are organized into three principal business segments:

Hospitality, which includes Gaylord Opryland, Gaylord Palms, Gaylord Texan, Gaylord National, the Inn at Opryland, the AC Hotel, and the Company’s equity investment in Gaylord Rockies;

Entertainment, which includes the Grand Ole Opry, the Ryman Auditorium, WSM-AM, Ole Red, Opry City Stage, and the Company’s Nashville-based attractions; and

Corporate and Other, which includes the Company’s corporate expenses.

The following information is derived directly from the segments’ internal financial reports used for corporate management purposes (amounts in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Revenues:
Hospitality	$	249,240	$	229,590	$	806,107	$	747,117
Entertainment		43,009		35,134		108,446		92,427
Corporate and Other		—		—		—		—
Total	$	292,249	$	264,724	$	914,553	$	839,544

Depreciation and amortization:
Hospitality	$	27,946	$	26,061	$	81,379	$	76,786
Entertainment		2,613		1,965		6,885		5,465
Corporate and Other		435		520		1,391		1,611
Total	$	30,994	$	28,546	$	89,655	$	83,862

Operating income:
Hospitality	$	43,518	$	36,298	$	175,213	$	149,788
Entertainment		9,069		10,518		20,614		25,325
Corporate and Other		(7,647)		(8,429)		(24,572)		(24,397)
Preopening costs		(300)		(877)		(3,972)		(1,587)
Impairment and other charges		(4,540)		—		(4,540)		—
Total operating income		40,100		37,510		162,743		149,129
Interest expense		(19,220)		(16,621)		(55,574)		(49,640)
Interest income		2,678		2,957		8,197		8,874
Loss from joint ventures		(985)		(899)		(2,227)		(2,616)
Other gains and (losses), net		1,881		1,453		2,085		57
Income before income taxes	$	24,454	$	24,400	$	115,224	$	105,804