Financial Reporting By Business Segments

9 Months Ended

Sep. 30, 2020

Financial Reporting By Business Segments

Financial Reporting By Business Segments

16. 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 investment in the Gaylord Rockies joint venture;

● Entertainment, which includes the Grand Ole Opry, the Ryman Auditorium, WSM-AM, Ole Red, the Company’s equity investment in Circle, 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,
	2020		2019		2020		2019
Revenues:
Hospitality	$	57,978	$	328,257	$	353,954	$	1,022,896
Entertainment		12,271		51,530		44,006		135,385
Corporate and Other		—		—		—		—
Total	$	70,249	$	379,787	$	397,960	$	1,158,281
Depreciation and amortization:
Hospitality	$	49,310	$	50,445	$	148,667	$	150,909
Entertainment		3,985		3,132		10,492		8,441
Corporate and Other		581		421		2,073		1,210
Total	$	53,876	$	53,998	$	161,232	$	160,560
Operating income:
Hospitality	$	(78,322)	$	52,116	$	(154,633)	$	191,563
Entertainment		(9,057)		14,376		(26,632)		34,222
Corporate and Other		(7,880)		(9,825)		(24,766)		(27,728)
Preopening costs (1)		(96)		(164)		(1,597)		(2,274)
Gain on sale of assets (2)		—		—		1,261		—
Credit loss on held-to-maturity securities (3)		(7,811)		—		(32,784)		—
Total operating income (loss)		(103,166)		56,503		(239,151)		195,783
Interest expense		(28,127)		(35,261)		(87,527)		(100,840)
Interest income		1,540		2,878		5,765		8,756
Loss from extinguishment of debt		—		(494)		—		(494)
Loss from unconsolidated joint ventures		(1,767)		(308)		(5,482)		(475)
Other gains and (losses), net		1,729		1,109		(14,831)		857
Income (loss) before income taxes	$	(129,791)	$	24,427	$	(341,226)	$	103,587

(1) Preopening costs for the three months ended September 30, 2020 relates to the Hospitality segment. Preopening costs for the nine months ended September 30, 2020 include $0.2 million and $1.4 million for the Hospitality and Entertainment segments, respectively. Preopening costs for the three months ended September 30, 2019 relate to the Entertainment segment. Preopening costs of the nine months ended September 30, 2019 include $0.6 million and $1.6 million for the Hospitality and Entertainment segments, respectively.

(2) Gain on sale of assets for the nine months ended September 30, 2020 relates to the Hospitality segment.

(3) Credit loss on held-to-maturity securities for the three months and nine months ended September 30, 2020 relates to the Hospitality segment.

	September 30,		December 31,
	2020		2019
Identifiable assets:
Hospitality	$	3,310,128	$	3,494,084
Entertainment		188,848		181,036
Corporate and Other		88,775		413,348
Total identifiable assets	$	3,587,751	$	4,088,468