Financial Reporting By Business Segments

12 Months Ended

Dec. 31, 2019

Financial Reporting By Business Segments

Financial Reporting By Business Segments

15. Financial Reporting By Business Segments

The Company’s continuing operations are organized into the following principal business segments:

● Hospitality, which includes the Gaylord Hotels properties, the Inn at Opryland, the AC Hotel, and the Company’s investment in the Gaylord Rockies joint venture;

● Entertainment, which includes the Grand Ole Opry, the Ryman Auditorium, WSM-AM, Ole Red, the Company’s other Nashville-based attractions, and the Company’s investment in the Circle joint venture; and

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

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

	2019		2018		2017
Revenues:
Hospitality	$	1,421,446	$	1,127,903	$	1,059,660
Entertainment		183,120		147,215		125,059
Corporate and Other		—		—		—
Total	$	1,604,566	$	1,275,118	$	1,184,719
Depreciation and amortization:
Hospitality	$	201,068	$	108,779	$	102,759
Entertainment		11,150		10,280		7,074
Corporate and Other		1,629		1,817		2,126
Total	$	213,847	$	120,876	$	111,959
Operating income:
Hospitality	$	263,203	$	247,885	$	223,302
Entertainment		45,361		27,686		33,472
Corporate and Other		(37,911)		(32,650)		(33,513)
Preopening costs (1)		(3,122)		(4,869)		(1,926)
Impairment charges (2)		—		(23,783)		(35,418)
Total operating income		267,531		214,269		185,917
Interest expense		(131,620)		(74,961)		(66,051)
Interest income		11,769		10,469		11,818
Loss from extinguishment of debt		(494)		—		—
Income (loss) from unconsolidated joint ventures (3)		(1,110)		125,005		(4,402)
Other gains and (losses), net		693		1,633		(337)
Income before income taxes	$	146,769	$	276,415	$	126,945

(1) Preopening costs for 2019 include $1.3 million and $1.9 million for the Hospitality and Entertainment segments, respectively. Preopening costs for 2018 include $2.9 million and $1.9 million for the Hospitality and Entertainment segments, respectively. Preopening costs for 2017 include $0.3 million and $1.6 million for the Hospitality and Entertainment segments, respectively.

(2) Impairment charges for 2018 relate to the Entertainment segment. Impairment charges for 2017 relate to the Hospitality segment.

(3) Loss from unconsolidated joint ventures for 2019 relates to the Entertainment segment. Income from unconsolidated joint ventures for 2018 includes $124.4 million (which includes the gain discussed in Note 4) and $0.6 million for the Hospitality and Entertainment segments, respectively. Loss from unconsolidated joint ventures for 2017 includes $1.9 million and $2.5 million for the Hospitality and Entertainment segments, respectively.

	December 31,		December 31,
	2019		2018
Identifiable assets:
Hospitality	$	3,494,084	$	3,547,638
Entertainment		181,036		155,412
Corporate and Other		413,348		150,833
Total identifiable assets	$	4,088,468	$	3,853,883

The following table represents the capital expenditures by segment for the years ended December 31 (amounts in thousands):

	2019		2018		2017
Hospitality	$	120,899	$	142,738	$	163,227
Entertainment		25,000		44,863		18,814
Corporate and other		6,642		616		524
Total capital expenditures	$	152,541	$	188,217	$	182,565