10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 001-35883

SeaWorld Entertainment, Inc.

(Exact name of registrant as specified in its charter)

Delaware	27-1220297
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

9205 South Park Center Loop, Suite 400

Orlando, Florida 32819

(Address of principal executive offices) (Zip code)

(407) 226-5011

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

The registrant had outstanding 90,208,315 shares of Common Stock, par value $0.01 per share as of August 3, 2015.

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

FORM 10-Q

TABLE OF CONTENTS

		Page No.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS			1
PART I.	FINANCIAL INFORMATION
Item 1.	Unaudited Condensed Consolidated Financial Statements		3
	Unaudited Condensed Consolidated Balance Sheets		3
	Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)		4
	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity		5
	Unaudited Condensed Consolidated Statements of Cash Flows		6
	Notes to Unaudited Condensed Consolidated Financial Statements		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		34
Item 4.	Controls and Procedures		35
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings		35
Item 1A.	Risk Factors		37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		37
Item 3.	Defaults Upon Senior Securities		37
Item 4.	Mine Safety Disclosures		37
Item 5.	Other Information		38
Item 6.	Exhibits		38

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

In addition to historical information, this Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections. All statements, other than statements of historical facts, including statements concerning our plans, objectives, goals, beliefs, business strategies, future events, business conditions, our results of operations, financial position and our business outlook, business trends and other information, may be forward-looking statements. Words such as “might,” “will,” “may,” “should,” “estimates,” “expects,” “continues,” “contemplates,” “anticipates,” “projects,” “plans,” “potential,” “predicts,” “intends,” “believes,” “forecasts,” “future” and variations of such words or similar expressions are intended to identify forward-looking statements. The forward-looking statements are not historical facts, and are based upon our current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond our control. Our expectations, beliefs, estimates and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, estimates and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.

There are a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking statements contained in this Quarterly Report on Form 10-Q. Such risks, uncertainties and other important factors that could cause actual results to differ include, among others, the risks, uncertainties and factors set forth under “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (the “SEC”), as such risk factors may be updated from time to time in our periodic filings with the SEC, and are accessible on the SEC’s website at www.sec.gov, including the following:

• a decline in discretionary consumer spending or consumer confidence;

• various factors beyond our control adversely affecting attendance and guest spending at our theme parks;

• changes in federal and state regulations governing the treatment of animals and claims and lawsuits by activist groups;

• incidents or adverse publicity concerning our theme parks;

• inability to protect our intellectual property or the infringement on intellectual property rights of others;

• featuring animals at our theme parks;

• the loss of licenses and permits required to exhibit animals;

• significant portion of revenues generated in the States of Florida, California and Virginia and the Orlando market;

• inability to compete effectively;

• loss of key personnel;

• increased labor costs and employee health and welfare benefits;

• unionization activities or labor disputes;

• inability to meet workforce needs;

• inability to fund theme park capital expenditures;

• high fixed cost structure of theme park operations;

• inability to maintain certain commercial licenses;

• changing consumer tastes and preferences;

• restrictions in our debt agreements limiting flexibility in operating our business;

• our substantial leverage;

• seasonal fluctuations;

• inability to realize the benefits of acquisitions or other strategic initiatives;

• adverse litigation judgments or settlements;

• inadequate insurance coverage;

• inability to purchase or contract with third-party manufacturers for rides and attractions;

1

• environmental regulations, expenditures and liabilities;

• cyber security risks;

• suspension or termination of any of our business licenses;

• our limited operating history as a stand-alone company; and

• the ability of affiliates of The Blackstone Group L.P to significantly influence our decisions.

We caution you that the risks, uncertainties and other factors referenced above may not contain all of the risks, uncertainties and other factors that are important to you. In addition, we cannot assure you that we will realize the results, benefits or developments that we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our business in the way expected. There can be no assurance that: (i) we have correctly measured or identified all of the factors affecting our business or the extent of these factors’ likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such analysis is correct or (iv) our strategy, which is based in part on this analysis, will be successful. All forward-looking statements in this report apply only as of the date of this report or as of the date they were made and, except as required by applicable law, we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

All references to “we,” “us,” “our,” “Company” or “SeaWorld” in this Quarterly Report on Form 10-Q mean SeaWorld Entertainment, Inc., its subsidiaries and affiliates.

Website and Social Media Disclosure

We use our website (www.seaworldentertainment.com) and our corporate Twitter account (@Seaworld) as channels of distribution of company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about SeaWorld when you enroll your e-mail address by visiting the “Email Alerts” section of our website at www.seaworldinvestors.com. The contents of our website and social media channels are not, however, a part of this report.

Trademarks, Service Marks and Tradenames

We own or have rights to use a number of registered and common law trademarks, service marks and trade names in connection with our business in the United States and in certain foreign jurisdictions, including SeaWorld Entertainment, SeaWorld Parks & Entertainment, SeaWorld^®, Shamu^®, Busch Gardens^®, Aquatica™, Discovery Cove^®, Sea Rescue™ and other names and marks that identify our theme parks, characters, rides, attractions and other businesses. In addition, we have certain rights to use Sesame Street^® marks, characters and related indicia through certain license agreements with Sesame Workshop (f/k/a Children’s Television Workshop).

Solely for convenience, the trademarks, service marks, and trade names referred to in this Quarterly Report on Form 10-Q are without the ^® and ™ symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors to these trademarks, service marks, and trade names. This Quarterly Report on Form 10-Q may contain additional trademarks, service marks and trade names of others, which are the property of their respective owners. All trademarks, service marks and trade names appearing in this Quarterly Report on Form 10-Q are, to our knowledge, the property of their respective owners.

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PART I — FINANCIAL INFORMATION

Item 1. Unaudited Condensed Consolidated Financial Statements

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

	June 30, 2015			December 31, 2014
Assets
Current assets:
Cash and cash equivalents	$	52,931		$	43,906
Accounts receivable, net		56,094			37,002
Inventories		38,749			33,134
Prepaid expenses and other current assets		20,562			20,894
Deferred tax assets, net		7,268			7,268
Total current assets		175,604			142,204
Property and equipment, at cost		2,678,128			2,612,052
Accumulated depreciation		(953,082	)		(867,421	)
Property and equipment, net		1,725,046			1,744,631
Goodwill		335,610			335,610
Trade names/trademarks, net		163,457			164,188
Other intangible assets, net		22,866			24,525
Other assets		13,220			11,313
Total assets	$	2,435,803		$	2,422,471
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	108,313		$	88,279
Current maturities on long-term debt		16,850			14,050
Accrued salaries, wages and benefits		23,678			19,068
Deferred revenue		146,458			79,367
Dividends payable		18,391			172
Other accrued expenses		16,883			20,149
Total current liabilities		330,573			221,085
Long-term debt (net of debt issuance costs of $15,285 as of June 30, 2015 and $20,003 as of December 31, 2014)		1,584,365			1,569,400
Deferred tax liabilities, net		4,600			31,760
Other liabilities		31,206			20,691
Total liabilities		1,950,744			1,842,936
Commitments and contingencies (Note 10)
Stockholders’ Equity:
Preferred stock, $0.01 par value—authorized, 100,000,000 shares, no shares issued or outstanding at June 30, 2015 and December 31, 2014		—			—
Common stock, $0.01 par value—authorized, 1,000,000,000 shares; 90,303,587 and 90,191,100 shares issued at June 30, 2015 and December 31, 2014, respectively		903			902
Additional paid-in capital		621,497			655,471
Accumulated other comprehensive loss		(5,103	)		(483	)
(Accumulated deficit) retained earnings		(22,367	)		33,516
Treasury stock, at cost (4,105,970 shares at June 30, 2015 and December 31, 2014)		(109,871	)		(109,871	)
Total stockholders’ equity		485,059			579,535
Total liabilities and stockholders’ equity	$	2,435,803		$	2,422,471

See accompanying notes to unaudited condensed consolidated financial statements.

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SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2014			2015			2014
Net revenues:
Admissions	$	238,451		$	249,263		$	375,291		$	386,649
Food, merchandise and other		153,165			155,888			230,917			230,792
Total revenues		391,616			405,151			606,208			617,441
Costs and expenses:
Cost of food, merchandise and other revenues		31,112			33,651			47,015			50,411
Operating expenses (exclusive of depreciation and amortization shown separately below)		191,202			189,190			345,013			357,102
Selling, general and administrative		73,320			58,564			124,398			103,640
Restructuring and other related costs		122			—			267			—
Secondary offering costs		—			73			—			747
Depreciation and amortization		50,110			43,086			93,964			84,362
Total costs and expenses		345,866			324,564			610,657			596,262
Operating income (loss)		45,750			80,587			(4,449	)		21,179
Other expense (income), net		209			(45	)		470			(28	)
Interest expense		15,732			20,526			35,910			40,230
Loss on early extinguishment of debt and write-off of discounts and debt issuance costs		20,348			—			20,348			—
Income (loss) before income taxes		9,461			60,106			(61,177	)		(19,023	)
Provision for (benefit from) income taxes		3,652			22,700			(23,388	)		(7,212	)
Net income (loss)	$	5,809		$	37,406		$	(37,789	)	$	(11,811	)
Other comprehensive income (loss):
Unrealized loss on derivatives, net of tax		(3,747	)		(872	)		(4,620	)		(1,080	)
Comprehensive income (loss)	$	2,062		$	36,534		$	(42,409	)	$	(12,891	)
Earnings (loss) per share:
Net income (loss) per share, basic	$	0.07		$	0.43		$	(0.44	)	$	(0.13	)
Net income (loss) per share, diluted	$	0.07		$	0.43		$	(0.44	)	$	(0.13	)
Weighted average common shares outstanding:
Basic		86,186			86,877			86,142			87,642
Diluted		86,291			87,189			86,142			87,642
Cash dividends declared per share:
Cash dividends declared per share	$	0.21		$	0.21		$	0.63		$	0.41

See accompanying notes to unaudited condensed consolidated financial statements.

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SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2015

(In thousands, except share and per share amounts)

	Shares of Common Stock Issued			Common Stock		Additional Paid-In Capital			Retained Earnings (Accumulated Deficit)			Accumulated Other Comprehensive Loss			Treasury Stock, at Cost			Total Stockholders’ Equity
Balance at December 31, 2014		90,191,100		$	902	$	655,471		$	33,516		$	(483	)	$	(109,871	)	$	579,535
Equity-based compensation		—			—		3,251			—			—			—			3,251
Unrealized loss on derivatives, net of tax benefit of $2,892		—			—		—			—			(4,620	)		—			(4,620	)
Vesting of restricted shares		154,325			1		(1	)		—			—			—			—
Shares withheld for tax withholdings		(41,838	)		—		(836	)		—			—			—			(836	)
Cash dividends declared to stockholders ($0.63 per share)		—			—		(36,388	)		(18,094	)		—			—			(54,482	)
Net loss		—			—		—			(37,789	)		—			—			(37,789	)
Balance at June 30, 2015		90,303,587		$	903	$	621,497		$	(22,367	)	$	(5,103	)	$	(109,871	)	$	485,059

See accompanying notes to unaudited condensed consolidated financial statements.

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SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	For the Six Months Ended June 30,
	2015			2014
Cash Flows From Operating Activities:
Net loss	$	(37,789	)	$	(11,811	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		93,964			84,362
Amortization of debt issuance costs and discounts		4,013			4,714
Loss on early extinguishment of debt and write-off of discounts and debt issuance costs		20,348			—
Loss on sale or disposal of assets		3,744			1,093
Loss on derivatives		287			—
Deferred income tax benefit		(24,268	)		(8,268	)
Equity-based compensation		3,251			1,335
Changes in assets and liabilities:
Accounts receivable		(22,608	)		(7,501	)
Inventories		(5,615	)		(8,099	)
Prepaid expenses and other current assets		511			(2,354	)
Accounts payable		26,780			24,697
Accrued salaries, wages and benefits		4,610			(4,970	)
Deferred revenue		71,485			53,799
Other accrued expenses		3,057			4,418
Other assets and liabilities		312			2,094
Net cash provided by operating activities		142,082			133,509
Cash Flows From Investing Activities:
Capital expenditures		(83,534	)		(93,847	)
Change in restricted cash		(179	)		(229	)
Net cash used in investing activities		(83,713	)		(94,076	)
Cash Flows From Financing Activities:
Proceeds from the issuance of debt		280,000			—
Repayment of long-term debt		(267,725	)		(7,025	)
Proceeds from draw on revolving credit facility		45,000			40,000
Repayment of revolving credit facility		(45,000	)		(40,000	)
Dividends paid to stockholders		(36,262	)		(35,407	)
Debt issuance costs		(4,571	)		—
Redemption premium payment		(14,300	)		—
Purchase of treasury stock		(5,650	)		(50,706	)
Payment of tax withholdings on equity-based compensation through shares withheld		(836	)		(130	)
Net cash used in financing activities		(49,344	)		(93,268	)
Change in Cash and Cash Equivalents		9,025			(53,835	)
Cash and Cash Equivalents—Beginning of period		43,906			116,841
Cash and Cash Equivalents—End of period	$	52,931		$	63,006
Supplemental Disclosures of Noncash Investing and Financing Activities
Capital expenditures in accounts payable	$	18,984		$	22,215
Dividends declared, but unpaid	$	18,391		$	18,590

See accompanying notes to unaudited condensed consolidated financial statements.

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SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

1. DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION

Description of the Business

SeaWorld Entertainment, Inc., through its wholly-owned subsidiary, SeaWorld Parks & Entertainment, Inc. (“SEA”) (collectively, the “Company”), owns and operates eleven theme parks within the United States. Prior to December 1, 2009, the Company did not have any operations. Prior to its initial public offering in April 2013, the Company was owned by ten limited partnerships (the “Partnerships” or the “selling stockholders”), ultimately owned by affiliates of The Blackstone Group L.P. (“Blackstone”) and certain co-investors.

The Company operates SeaWorld theme parks in Orlando, Florida; San Antonio, Texas; and San Diego, California, and Busch Gardens theme parks in Tampa, Florida, and Williamsburg, Virginia. The Company operates water park attractions in Orlando, Florida (Aquatica); San Diego, California (Aquatica); Tampa, Florida (Adventure Island); and Williamsburg, Virginia (Water Country USA). The Company also operates a reservations-only attraction offering interaction with marine animals (Discovery Cove) and a seasonal park in Langhorne, Pennsylvania (Sesame Place).

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC. The unaudited condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K.

In the opinion of management, such unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations for the year ending December 31, 2015 or any future period due to the seasonal nature of the Company’s operations. Based upon historical results, the Company typically generates its highest revenues in the second and third quarters of each year and incurs a net loss in the first and fourth quarters, in part because six of its theme parks are only open for a portion of the year.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including SEA. All intercompany accounts have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions include, but are not limited to, the accounting for self-insurance, deferred tax assets, deferred revenue, equity compensation and the valuation of goodwill and other indefinite-lived intangible assets. Actual results could differ from those estimates.

Segment Reporting

The Company maintains discrete financial information for each of its eleven theme parks, which is used by the Chief Operating Decision Maker (“CODM”), identified as the Chief Executive Officer, as a basis for allocating resources. Each theme park has been identified as an operating segment and meets the criteria for aggregation due to similar economic characteristics. In addition, all of the theme parks provide similar products and services and share similar processes for delivering services. The theme parks have a high degree of similarity in the workforces and target similar consumer groups. Accordingly, based on these economic and operational similarities and the way the CODM monitors the operations, the Company has concluded that its operating segments may be aggregated and that it has one reportable segment.

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SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

Reclassifications

Certain prior year amounts have been reclassified to conform to the 2015 presentation, in particular debt issuance costs, which were previously included in other assets, have been reclassified to long-term debt as a result of the adoption of a new Accounting Standards Update (“ASU”). See Note 2–Recently Issued Accounting Pronouncement for further details.

Revision of Previously Issued Financial Statements

In the third quarter of 2014, the Company conducted an internal review of its application of the guidance in Accounting Standards Codification (“ASC”) 470-50, Debt-Modifications and Extinguishments, to its accounting for certain debt transactions in 2013, 2012 and 2011. As a result of this review and analysis, the Company determined that it had incorrectly applied the accounting guidance in ASC 470-50 and inappropriately accounted for certain fees as a result of modifications and prepayments in certain years. In accordance with ASC 250 (SEC Staff Accounting Bulletin 99, Assessing Materiality), the Company concluded that the correction of the errors was not material to any of its previously issued annual or interim financial statements. The Company has revised its previously issued financial statements contained in this Quarterly Report on Form 10-Q to correct the effect of these immaterial errors for the corresponding periods. See Note 6–Long-Term Debt for the impact of revisions on previously issued periods contained within this Quarterly Report on Form 10-Q.

2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

The Company reviews new accounting pronouncements as they are issued or proposed by the Financial Accounting Standards Board (“FASB”).

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. This ASU simplifies the accounting for inventory by requiring inventory to be measured at the “lower of cost and net realizable value” and eliminates options that currently exist for measuring inventory at “market value”. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. The ASU is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. The Company does not expect a material impact to its consolidated financial statements upon adoption of this ASU.

In June 2015, the Company elected to early adopt ASU No. 2015-03, Interest – Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs. This ASU simplifies the accounting for debt issuance costs by requiring such costs to be presented as a direct deduction from the related debt liability rather than as an asset. Debt disclosures include the face amount of the debt liability and the effective interest rate. The ASU has been applied retrospectively as a change in accounting principle for all periods presented in the accompanying unaudited condensed consolidated balance sheets. As a result of adopting this ASU, the Company reclassified $20,003 of unamortized debt issuance costs at December 31, 2014, from other assets to long-term debt on the accompanying unaudited condensed consolidated balance sheet. The adoption of this ASU did not impact the Company’s consolidated results of operations, stockholders’ equity or cash flows. See Note 6–Long-Term Debt for further details.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB approved a proposed ASU to defer the effective date to annual reporting periods beginning after December 15, 2017 using one of two retrospective application methods with earlier adoption permitted for annual periods beginning after December 15, 2016. The Company is evaluating the accounting and disclosure requirements on its consolidated financial statements but does not currently anticipate a material impact to the consolidated financial statements upon adoption; however, the Company is in the process of evaluating the effect this ASU will have on the classification of revenue and related disclosures.

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SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

3. EARNINGS (LOSS) PER SHARE

Earnings (loss) per share is computed as follows:

	Three Months Ended June 30,												Six Months Ended June 30,
	2015						2014						2015								2014
	Net Income		Shares		Per Share Amount		Net Income		Shares		Per Share Amount		Net Loss			Shares		Per Share Amount			Net Loss			Shares		Per Share Amount
Basic earnings (loss) per share	$	5,809		86,186	$	0.07	$	37,406		86,877	$	0.43	$	(37,789	)		86,142	$	(0.44	)	$	(11,811	)		87,642	$	(0.13	)
Effect of dilutive incentive-based awards				105						312							—								—
Diluted earnings (loss) per share	$	5,809		86,291	$	0.07	$	37,406		87,189	$	0.43	$	(37,789	)		86,142	$	(0.44	)	$	(11,811	)		87,642	$	(0.13	)

In accordance with the Earnings Per Share Topic of the ASC, basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period (excluding treasury stock and unvested restricted stock). The shares of unvested restricted stock are eligible to receive dividends; however, dividend rights will be forfeited if the award does not vest. Accordingly, only vested shares of outstanding restricted stock are included in the calculation of basic earnings per share. The weighted average number of repurchased shares during the period, if any, which are held as treasury stock are excluded from common stock outstanding.

Diluted earnings (loss) per share is determined using the treasury stock method based on the dilutive effect of unvested restricted stock and certain shares of common stock that are issuable upon exercise of stock options. There were approximately 1,933,000 and 17,000 anti-dilutive shares of common stock excluded from the computation of diluted earnings per share during the three months ended June 30, 2015 and 2014, respectively. During the six months ended June 30, 2015 and 2014, the Company excluded potentially dilutive shares of approximately 1,583,000 and 324,000, respectively, from the calculation of diluted loss per share as their effect would have been anti-dilutive due to the Company’s net loss in those periods.

The Company’s outstanding performance share awards are considered contingently issuable shares and are excluded from the calculation of diluted earnings (loss) per share as the performance criteria has not been met as of the end of the reporting period. See further discussion in Note 11–Equity-Based Compensation.

4. INCOME TAXES

Income tax expense or benefit is recognized based on the Company’s estimated annual effective tax rate which is based upon the tax rate expected for the full calendar year applied to the pre-tax income or loss of the interim period. The Company’s consolidated effective tax rate for the three and six months ended June 30, 2015 was 38.6% and 38.2%, respectively, and differs from the statutory federal income tax rate primarily due to state income taxes and other permanent items. The Company’s consolidated effective tax rate for the three and six months ended June 30, 2014 was 37.8% and 37.9%, respectively, and differs from the statutory federal income tax rate primarily due to state income taxes and other permanent items.

The Company has determined that there are no positions currently taken that would rise to a level requiring an amount to be recorded or disclosed as an uncertain tax position. If such positions do arise, it is the Company’s intent that any interest or penalty amount related to such positions will be recorded as a component of tax expense to the applicable period.

9

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

5. OTHER ACCRUED EXPENSES

Other accrued expenses at June 30, 2015 and December 31, 2014, consisted of the following:

	June 30,		December 31,
	2015		2014
Accrued property taxes	$	7,339	$	2,039
Accrued interest		464		2,604
Self-insurance reserve		7,078		7,800
Other		2,002		7,706
Total other accrued expenses	$	16,883	$	20,149

6. LONG-TERM DEBT

Long-term debt as of June 30, 2015 and December 31, 2014 consisted of the following:

	June 30,			December 31,
	2015			2014
Term B-2 Loans (effective interest rate of 3.26% at June 30, 2015 and December 31, 2014)	$	1,345,413		$	1,352,438
Term B-3 Loans (effective interest rate of 4.33% at June 30, 2015)		279,300			—
Revolving Credit Facility		—			—
Senior Notes (effective interest rate of 12.07% at December 31, 2014)		—			260,000
Total long-term debt		1,624,713			1,612,438
Less discounts		(8,213	)		(8,985	)
Less debt issuance costs		(15,285	)		(20,003	)
Less current maturities		(16,850	)		(14,050	)
Total long-term debt, net	$	1,584,365		$	1,569,400

SEA is the borrower under the senior secured credit facilities, as amended pursuant to a credit agreement dated as of December 1, 2009 (the “Senior Secured Credit Facilities”). Also on December 1, 2009, SEA issued $400,000 aggregate principal amount of unsecured senior notes due December 1, 2016 (the “Senior Notes”).

On March 30, 2015, SEA entered into an incremental term loan amendment, Amendment No. 7 (the “Incremental Amendment”), to its existing Senior Secured Credit Facilities. On April 7, 2015, SEA borrowed $280,000 of additional term loans (the “Term B-3 Loans”) pursuant to the Incremental Amendment. The proceeds, along with cash on hand, were used to redeem all of the $260,000 outstanding principal of the Senior Notes at a redemption price of 105.5% plus accrued and unpaid interest and pay fees, costs and other expenses in connection with the Term B-3 Loans. The redemption premium of $14,300 along with a write-off of approximately $6,048 in related discounts and debt issuance costs is included in the loss on early extinguishment of debt and write-off of discounts and debt issuance costs on the accompanying unaudited condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2015.

In connection with the issuance of the Term B-3 Loans, SEA recorded a discount of $1,400 and debt issuance costs of $3,171 during the three months ended June 30, 2015. Debt issuance costs and discounts are amortized to interest expense using the effective interest method over the term of the Senior Secured Credit Facilities and are included in long-term debt, net, in the accompanying unaudited condensed consolidated balance sheets. See Note 2–Recently Issued Accounting Pronouncements for more details on the Company’s adoption of ASU 2015-03 in the second quarter of 2015.

As of June 30, 2015, SEA was in compliance with all covenants in the provisions contained in the documents governing the Senior Secured Credit Facilities.

10

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

Senior Secured Credit Facilities

As of June 30, 2015, the Senior Secured Credit Facilities consisted of $1,345,413 in Term B-2 Loans and $279,300 in Term B-3 Loans, which will mature on May 14, 2020, along with $192,500 in a senior secured revolving credit facility (the “Revolving Credit Facility”), which was not drawn upon as of June 30, 2015. The Revolving Credit Facility will mature on the earlier of (a) April 24, 2018 and (b) the 91st day prior to the maturity date of any indebtedness incurred to refinance any of the term loans.

Term B-2 Loans

The Term B-2 Loans were initially borrowed in an aggregate principal amount of $1,405,000. Borrowings under the Senior Secured Credit Facilities bear interest, at SEA’s option, at a rate equal to a margin over either (a) a base rate determined by reference to the higher of (1) the rate of interest in effect for such day as publicly announced from time to time by Bank of America, N.A. as its “prime rate” and (2) the federal funds effective rate plus 1/2 of 1% or (b) a LIBOR rate determined by reference to the British Bankers Association (“BBA”) LIBOR rate, or the successor thereto if the BBA is no longer making a LIBOR rate available, for the interest period relevant to such borrowing. The applicable margin for the Term B-2 Loans is 1.25%, in the case of base rate loans, and 2.25%, in the case of LIBOR rate loans, subject to a base rate floor of 1.75% and a LIBOR floor of 0.75%. The applicable margin for the Term B-2 Loans (under either a base rate or LIBOR rate) is subject to one 25 basis point step-down upon achievement by SEA of a certain total net leverage ratio. At June 30, 2015, SEA selected the LIBOR rate (interest rate of 3.00% at June 30, 2015).

The Term B-2 Loans amortize in equal quarterly installments in an aggregate annual amount equal to 1.0% of the original principal amount of the Term B-2 Loans on May 14, 2013, with the balance due on the final maturity date, of May 14, 2020. SEA may voluntarily repay amounts outstanding under the Senior Secured Credit Facilities at any time without premium or penalty, other than customary “breakage” costs with respect to LIBOR loans.

SEA is required to prepay the outstanding Term B-2 loans, subject to certain exceptions, with (i) 50% of SEA’s annual “excess cash flow” (with step-downs to 25% and 0%, as applicable, based upon achievement by SEA of a certain total net leverage ratio), subject to certain exceptions; (ii) 100% of the net cash proceeds of certain non-ordinary course asset sales or other dispositions subject to reinvestment rights and certain exceptions; and (iii) 100% of the net cash proceeds of any incurrence of debt by SEA or any of its restricted subsidiaries, other than debt permitted to be incurred or issued under the Senior Secured Credit Facilities.

Notwithstanding any of the foregoing, each lender of term loans has the right to reject its pro rata share of mandatory prepayments described above, in which case SEA may retain the amounts so rejected. The foregoing mandatory prepayments will be applied pro rata to installments of term loans in direct order of maturity. There were no mandatory prepayments during the three or six months ended June 30, 2015 or 2014 since none of the events indicated above occurred.

SEA may also increase and/or add one or more incremental term loan facilities to the Senior Secured Credit Facilities and/or increase commitments under the Revolving Credit Facility in an aggregate principal amount of up to $350,000. SEA may also incur additional incremental term loans provided that, among other things, on a pro forma basis after giving effect to the incurrence of such incremental term loans, the First Lien Secured Leverage Ratio, as defined in the Senior Secured Credit Facility, is no greater than 3.50 to 1.00.

As of June 30, 2015, SEA had approximately $18,000 of outstanding letters of credit, leaving approximately $174,500 available for borrowing.

Term B-3 Loans

Borrowings of Term B-3 Loans bear interest at a fluctuating rate per annum equal to, at SEA’s option, (i) a base rate equal to the higher of (a) the federal funds rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America, N.A. as its “prime rate” or (ii) a LIBOR rate determined by reference to the BBA LIBOR rate, or the successor thereto if the BBA is no longer making a LIBOR rate available, for the interest period relevant to such borrowing. The applicable margin for the Term B-3 Loans is 2.25%, in the case of base rate loans, and 3.25%, in the case of LIBOR rate loans, subject to a base rate floor of 1.75% and a LIBOR floor of 0.75%. At June 30, 2015, SEA selected the LIBOR rate (interest rate of 4.00% at June 30, 2015).

The Term B-3 Loans amortize in equal quarterly installments in an aggregate annual amount equal to 1.0% of the original principal amount of the Term B-3 Loans on the date of effectiveness of the Incremental Amendment, with the balance due on the final maturity date of May 14, 2020. Except as set forth in the preceding sentence, the Term B-3 Loans contain identical mandatory and voluntary prepayments as those applicable to Term B-2 Loans. SEA may voluntarily repay outstanding loans at any time without premium or penalty, other than a prepayment premium on voluntary prepayments of Term B-3 Loans in connection with certain repricing transactions on or prior to the date that is six months after the effectiveness of the Incremental Amendment and customary “breakage” costs with respect to LIBOR loans.

11

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

All other terms of the Term B-3 Loans are substantially identical to the terms applicable to the Term B-2 Loans under the Senior Secured Credit Facilities.

Revolving Credit Facility

Borrowings of loans under the Revolving Credit Facility bear interest at a fluctuating rate per annum equal to, at SEA’s option, a base rate equal to the higher of (a) the federal funds rate plus  ¹⁄₂ of 1%, and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America, N.A. as its “prime rate”.

The applicable margin for borrowings under the Revolving Credit Facility is 1.75%, in the case of base rate loans, and 2.75%, in the case of LIBOR rate loans. The applicable margin (under either a base rate or LIBOR rate) is subject to one 25 basis point step-down upon achievement by SEA of certain corporate credit ratings. At June 30, 2015, SEA selected the LIBOR rate and achieved the corporate credit ratings for an applicable LIBOR margin of 2.50%.

In addition to paying interest on outstanding principal under the Senior Secured Credit Facilities, SEA is required to pay a commitment fee to the lenders under the Revolving Credit Facility in respect of the unutilized commitments thereunder at a rate of 0.50% per annum. SEA is also required to pay customary letter of credit fees.

Restrictive Covenants

The Senior Secured Credit Facilities contain a number of customary negative covenants. Such covenants, among other things, restrict, subject to certain exceptions, the ability of SEA and its restricted subsidiaries to incur additional indebtedness; make guarantees; create liens on assets; enter into sale and leaseback transactions; engage in mergers or consolidations; sell assets; make fundamental changes; pay dividends and distributions or repurchase SEA’s capital stock; make investments, loans and advances, including acquisitions; engage in certain transactions with affiliates; make changes in nature of the business; and make prepayments of junior debt. The Senior Secured Credit Facilities also contain covenants requiring SEA to maintain specified maximum annual capital expenditures, a maximum total net leverage ratio and a minimum interest coverage ratio. All of the net assets of SEA and its consolidated subsidiaries are restricted and there are no unconsolidated subsidiaries of SEA.

The Senior Secured Credit Facilities permit restricted payments in an aggregate amount per annum not to exceed the greater of (1) 6% of initial public offering net proceeds received by SEA or (2) (a) $90,000, so long as, on a Pro Forma Basis (as defined in the Senior Secured Credit Facilities) after giving effect to the payment of any such restricted payment, the Total Leverage Ratio, (as defined in the Senior Secured Credit Facilities), is no greater than 5.00 to 1.00 and greater than 4.50 to 1.00, (b) $120,000, so long as, on a Pro Forma Basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 4.50 to 1.00 and greater than 4.00 to 1.00, (c) the greater of (A) $120,000 and (B) 7.5% of Market Capitalization (as defined in the Senior Secured Credit Facilities), so long as, on a Pro Forma Basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 4.00 to 1.00 and greater than 3.50 to 1.00 and (d) an unlimited amount, so long as, on a Pro Forma Basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 3.50 to 1.00.

As of June 30, 2015, the Total Leverage Ratio as calculated under the Senior Secured Credit Facilities was 4.42 to 1.00, which results in the Company having a $120,000 capacity for restricted payments in 2015. During the six months ended June 30, 2015, the Company has used approximately $54,500 of its available restricted payments capacity. As a result, the Company currently has the ability to declare dividends or make certain other restricted payments in an aggregate amount of up to approximately $65,500 for the remainder of calendar year 2015. The amount available for dividend declarations, share repurchases and certain other restricted payments under the covenant restrictions in the debt agreements adjusts at the beginning of each quarter as set forth above.

12

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

Long-term debt at June 30, 2015, is repayable as follows:

Years Ending December 31,
2015	$	8,425
2016		16,850
2017		16,850
2018		16,850
2019		16,850
Thereafter		1,548,888
Total	$	1,624,713

Revision of Previously Issued Financial Statements

The following table presents the impact of the corrections on previously issued periods included within this Quarterly Report on Form 10-Q (see the “Revision of Previously Issued Financial Statements” section of Note 1–Description of the Business and Basis of Presentation for further details):

	For the Three Months Ended June 30, 2014							For the Six Months Ended June 30, 2014
	As Previously Reported		Adjustments			As Revised		As Previously Reported			Adjustments			As Revised
Selected Statements of Comprehensive Income (Loss) Data:
Interest expense	$	20,638	$	(112	)	$	20,526	$	40,684		$	(454	)	$	40,230
Income (loss) before income taxes	$	59,994	$	112		$	60,106	$	(19,477	)	$	454		$	(19,023	)
Provision for (benefit from) income taxes	$	22,658	$	42		$	22,700	$	(7,382	)	$	170		$	(7,212	)
Net income (loss)	$	37,336	$	70		$	37,406	$	(12,095	)	$	284		$	(11,811	)
Net income (loss) per share:
Net income (loss) per share, basic	$	0.43	$	—		$	0.43	$	(0.14	)	$	(0.01	)	$	(0.13	)
Net income (loss) per share, diluted	$	0.43	$	—		$	0.43	$	(0.14	)	$	(0.01	)	$	(0.13	)

Interest Rate Swap Agreements

On June 10, 2015, the Company entered into five forward interest rate swap agreements (“the Forward Swaps”) to effectively fix the interest rate on the three month LIBOR-indexed interest payments associated with $1,000,000 of SEA’s outstanding long-term debt. The Forward Swaps have an effective date of September 30, 2016; have a total notional amount of $1,000,000; mature on May 14, 2020; require the Company to pay a weighted-average fixed rate of 2.45% per annum; pay swap counterparties a variable rate of interest based upon the greater of 0.75% or the three month BBA LIBOR; and have interest settlement dates occurring on the last day of September, December, March and June through maturity.

As of June 30, 2015, SEA has four traditional interest rate swap agreements (collectively, the “Interest Rate Swap Agreements”). Three of the interest rate swap agreements have a combined notional amount of $1,000,000; mature on September 30, 2016; require the Company to pay a fixed rate of interest between 1.049% and 1.051% per annum; pay swap counterparties a variable rate of interest based upon the greater of 0.75% or the three month BBA LIBOR; and have interest settlement dates occurring on the last day of March, June, September and December through maturity.

In April 2015, the Company executed the fourth traditional interest rate swap agreement to effectively fix the interest rate on $250,000 of the Term B-3 Loans. The interest rate swap has an effective date of June 30, 2015; has a notional amount of $250,000; is scheduled to mature on September 30, 2016; requires the Company to pay a fixed rate of interest of 0.901% per annum; pays swap counterparties a variable rate of interest based upon the greater of 0.75% or the three month BBA LIBOR; and has interest settlement dates occurring on the last day of September, December, March and June through maturity.

SEA designated the Interest Rate Swap Agreements and the Forward Swaps above as qualifying cash flow hedge accounting relationships as further discussed in Note 7–Derivative Instruments and Hedging Activities which follows.

Cash paid for interest relating to the Senior Secured Credit Facilities, the Senior Notes and the Interest Rate Swap Agreements was $35,201 and $37,355 for the six month period ended June 30, 2015 and 2014, respectively.

13

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

7. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. The Company does not speculate using derivative instruments.

As of June 30, 2015 and December 31, 2014, the Company did not have any derivatives outstanding that were not designated in hedge accounting relationships.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. During the three and six months ended June 30, 2015 and 2014, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. As of June 30, 2015, the Company had four outstanding interest rate swap agreements with a combined notional value of $1,250,000 and five forward interest rate swap agreements with a combined notional value of $1,000,000 that were designated as cash flow hedges of interest rate risk. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and six months ended June 30, 2015, a loss of $1 and $287, respectively, related to the ineffective portion was recognized in other expense (income), net on the accompanying unaudited condensed consolidated statements of comprehensive income (loss). There was no ineffective portion during the three or six months ended June 30, 2014. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next 12 months, the Company estimates that an additional $3,252 will be reclassified as an increase to interest expense.

Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014:

	As of June 30, 2015			As of December 31, 2014
	Liability Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate swaps	Other liabilities	$	2,516	Other liabilities	$	628
Forward interest rate swaps	Other liabilities		5,868			—
Total derivatives designated as hedging instruments		$	8,384		$	628

The unrealized loss on derivatives is recorded net of a tax benefit of $2,892 for the six months ended June 30, 2015, and is included within the unaudited condensed consolidated statements of changes in stockholders’ equity.

14

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

Tabular Disclosure of the Effect of Derivative Instruments on the Statements of Comprehensive Income (Loss)

The table below presents the pre-tax effect of the Company’s derivative financial instruments on the unaudited condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014:

	Three Months Ended June 30						Six Months Ended June 30
	2015			2014			2015			2014
Derivatives in Cash Flow Hedging Relationships:
Loss related to effective portion of derivatives recognized in accumulated other comprehensive loss	$	(6,832	)	$	(2,147	)	$	(8,981	)	$	(2,873	)
Gain related to effective portion of derivatives reclassified from accumulated other comprehensive loss to interest expense	$	739		$	738		$	1,469		$	1,133
Loss related to ineffective portion of derivatives recognized in other expense (income), net	$	(1	)	$	—		$	(287	)	$	—

Credit Risk-Related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations.

As of June 30, 2015, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $9,980. As of June 30, 2015, the Company has posted no collateral related to these agreements. If the Company had breached any of these provisions at June 30, 2015, it could have been required to settle its obligations under the agreements at their termination value of $9,980.

Changes in Accumulated Other Comprehensive Loss

The following table reflects the changes in accumulated other comprehensive loss for the six months ended June 30, 2015, net of tax:

Accumulated other comprehensive loss:	(Losses) Gains on Cash Flow Hedges
Balance at December 31, 2014	$	(483	)
Other comprehensive loss before reclassifications		(5,523	)
Amounts reclassified from accumulated other comprehensive loss to interest expense		903
Unrealized loss on derivatives, net of tax		(4,620	)
Balance at June 30, 2015	$	(5,103	)

8. FAIR VALUE MEASUREMENTS

Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement is required to be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

The Company has determined that the majority of the inputs used to value its derivative financial instruments using the income approach fall within Level 2 of the fair value hierarchy. The Company uses readily available market data to value its derivatives, such as interest rate curves and discount factors. ASC 820, Fair Value Measurement, also requires consideration of credit risk in the valuation. The Company uses a potential future exposure model to estimate this credit valuation adjustment (“CVA”). The inputs to the CVA are largely based on observable market data, with the exception of certain assumptions regarding credit worthiness which make the CVA a Level 3 input. Based on the magnitude of the CVA, it is not considered a significant input and the derivatives are classified as Level 2. Of the Company’s

15

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

long-term obligations, the Term B-2 Loans and Term B-3 Loans are classified in Level 2 of the fair value hierarchy. The fair value of the term loans as of June 30, 2015 approximates their carrying value due to the variable nature of the underlying interest rates and the frequent intervals at which such interest rates are reset. The Senior Notes were classified in Level 3 of the fair value hierarchy as of December 31, 2014 and were valued using significant inputs that are not observable in the market including a discount rate of 11.37% and projected cash flows of the underlying Senior Notes as of December 31, 2014. The Senior Notes were redeemed in full on April 7, 2015 as discussed in Note 6–Long-Term Debt.

There were no transfers between Levels 1, 2 or 3 during the three or six months ended June 30, 2015. The Company did not have any assets measured at fair value as of June 30, 2015. The following table presents the Company’s estimated fair value measurements and related classifications as of June 30, 2015:

	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at June 30, 2015
Liabilities:
Derivative financial instruments (a)	$	—	$	8,384	$	—	$	8,384
Long-term obligations (b)	$	—	$	1,624,713	$	—	$	1,624,713

(a) Reflected at fair value in the unaudited condensed consolidated balance sheet as other liabilities of $8,384.

(b) Reflected at carrying value in the unaudited condensed consolidated balance sheet as current maturities on long-term debt of $16,850 and long-term debt of $1,584,365 as of June 30, 2015.

There were no transfers between Levels 1, 2 or 3 during the year ended December 31, 2014. The Company did not have any assets measured at fair value as of December 31, 2014. The following table presents the Company’s estimated fair value measurements and related classifications as of December 31, 2014:

	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at December 31, 2014
Liabilities:
Derivative financial instruments (a)	$	—	$	628	$	—	$	628
Long-term obligations (b)	$	—	$	1,352,438	$	263,197	$	1,615,635

(a) Reflected at fair value in the unaudited condensed consolidated balance sheet as other liabilities of $628.

(b) Reflected at carrying value in the unaudited condensed consolidated balance sheet as current maturities on long-term debt of $14,050 and long-term debt of $1,569,400 as of December 31, 2014.

9. RELATED-PARTY TRANSACTIONS

On January 5, March 3 and June 10, 2015, the Board declared a cash dividend of $0.21 per share to all common stockholders of record at the close of business on January 13, March 13 and June 22, 2015, respectively. In connection with these dividend declarations, certain affiliates of Blackstone were paid dividends in the amount of $4,095 on January 22, April 1 and July 1, 2015 (see Note 12–Stockholders’ Equity).

The Company repurchased shares of its common stock from the selling stockholders concurrently with the closing of the secondary offering in April 2014. See further discussion in Note 12–Stockholders’ Equity.

16

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

As of June 30, 2015, approximately $81,000 aggregate principal amount of Term B-2 Loans and $23,000 aggregate principal amount of Term B-3 Loans were owned by affiliates of Blackstone. As of December 31, 2014, approximately $65,000 aggregate principal amount of the Senior Notes and approximately $87,000 aggregate principal amount of Term B-2 Loans were owned by affiliates of Blackstone. The Company makes periodic interest payments on such debt in accordance with its terms. On April 7, 2015, the Senior Notes were redeemed as discussed in Note 6–Long-Term Debt.

10. COMMITMENTS AND CONTINGENCIES

Securities Class Action Lawsuit

On September 9, 2014, a purported stockholder class action lawsuit consisting of purchasers of the Company’s common stock during the periods between April 18, 2013 to August 13, 2014, captioned Baker v. SeaWorld Entertainment, Inc., et al., Case No. 14-CV-02129-MMA (KSC), was filed in the U.S. District Court for the Southern District of California against the Company, the Chairman of the Company’s Board of Directors, certain of its executive officers and Blackstone. On February 27, 2015, Court-appointed Lead Plaintiffs, Pensionskassen For Børne- Og Ungdomspædagoger and Arkansas Public Employees Retirement System, together with additional plaintiffs, Oklahoma City Employee Retirement System and Pembroke Pines Firefighters and Police Officers Pension Fund (collectively, “Plaintiffs”), filed an amended complaint against the Company, the Chairman of the Company’s Board of Directors, certain of its executive officers, Blackstone, and underwriters of the initial public offering and secondary public offerings. The amended complaint alleges, among other things, that the prospectus and registration statements filed contained materially false and misleading information in violation of the federal securities laws and seeks unspecified compensatory damages and other relief. Plaintiffs contend that defendants knew or were reckless in not knowing that Blackfish was impacting SeaWorld’s business at the time of each public statement. On May 29, 2015, the Company and the other defendants filed a motion to dismiss the amended complaint. The plaintiffs filed an opposition to the motion to dismiss on July 31, 2015. The reply of the Company and the other defendants is due on September 18, 2015. The Company believes that the class action lawsuit is without merit and intends to defend the lawsuit vigorously; however, there can be no assurance regarding the ultimate outcome of this lawsuit.

Shareholder Derivative Lawsuit

On December 8, 2014, a putative derivative lawsuit captioned Kistenmacher v. Atchison, et al., Civil Action No. 10437, was filed in the Court of Chancery of the State of Delaware against, among others, the Chairman of the Board of Directors, certain of the Company’s executive officers, directors and shareholders, and Blackstone. The Company is a “Nominal Defendant” in the lawsuit. On March 30, 2015, the plaintiff filed an amended complaint against the same set of defendants. The amended complaint alleges, among other things, that the defendants breached their fiduciary duties, aided and abetted breaches of fiduciary duties, violated Florida Blue Sky laws and were unjustly enriched by (i) including materially false and misleading information in the prospectus and registration statements; and (ii) causing the Company to repurchase certain shares of its common stock from certain shareholders at an alleged artificially inflated price. The Company does not maintain any direct exposure to loss in connection with this shareholder derivative lawsuit as the lawsuit does not assert any claims against the Company. The Company’s status as a “Nominal Defendant” in the action reflects the fact that the lawsuit is maintained by the named plaintiff on behalf of the Company and that the plaintiff seeks damages on the Company’s behalf. On May 21, 2015, the defendants filed a motion to stay the lawsuit pending resolution of the Company’s securities class action lawsuit. Plaintiff has opposed defendants’ motion to stay, which is currently pending before the court. On June 29, 2015, the defendants filed a motion to dismiss the amended complaint.

Consumer Class Action Lawsuits

On March 25, 2015, a purported class action was filed in the United States District Court for the Southern District of California against the Company, captioned Holly Hall v. SeaWorld Entertainment, Inc., Case No. 3:15-cv-00600-CAB-RBB (the “Hall Matter”). The complaint identifies three putative classes consisting of all consumers nationwide who at any time during the four-year period preceding the filing of the original complaint, purchased an admission ticket, a membership or a SeaWorld “experience” that includes an “orca experience” from the SeaWorld amusement park in San Diego, California, Orlando, Florida or San Antonio, Texas respectively. The complaint alleges causes of action under California Unfair Competition Law, California Consumers Legal Remedies Act, California False Advertising Law, California Deceit statute, Florida Unfair and Deceptive Trade Practices Act, Texas Deceptive Trade Practices Act, as well as claims for Unjust Enrichment. Plaintiffs’ claims are based on their allegations that the Company misrepresented the physical living conditions and care and treatment of its killer whales, resulting in confusion or misunderstanding among ticket purchasers, and omitted material facts regarding its killer whales with intent to deceive and mislead the plaintiff and purported class members. The complaint further alleges that the specific misrepresentations heard and relied upon by Holly Hall, the sole named plaintiff, in purchasing her SeaWorld tickets concerned the circumstances surrounding the death of a SeaWorld trainer. The complaint seeks actual damages, equitable relief, attorney’s fees and costs. Plaintiff claims that the amount in controversy exceeds $5,000, but the liability exposure is speculative until the size of the class is determined (if certification is granted at all). The case is in the preliminary stages and a response to the complaint has not yet been filed.

17

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

In addition, four other purported class actions were filed against the Company and its affiliates in the following federal courts on April 9, 2015, April 16, 2015, April 17, 2015 and May 7, 2015, respectively: (i) the United States District Court for the Middle District of Florida, captioned Joyce Kuhl v. SeaWorld LLC et al., 6:15-cv-00574-ACC-GJK, (ii) the United States District Court for the Southern District of California, captioned Jessica Gaab, et. al. v. SeaWorld Entertainment, Inc., Case No. 15:cv-842-CAB-RBB (the “Gaab Matter”), (iii) the United States District Court for the Western District of Texas, captioned Elaine Salazar Browne v. SeaWorld of Texas LLC et al., 5:15-cv-00301-XR and (iv) the United States District Court for the Southern District of California, captioned Valerie Simo et al. v. SeaWorld Entertainment, Inc., Case No. 15:cv-1022-CAB-RBB (the “Simo Matter”). These cases, in essence, reiterate the claims made and relief sought in the Hall Matter. On May 1, 2015, the cases in Florida and Texas were voluntarily dismissed without prejudice by the respective plaintiffs.

On April 13, 2015, a purported class action was filed in the Superior Court of the State of California for the City and County of San Francisco against SeaWorld Parks and Entertainment, Inc., captioned Marc Anderson, et. al., v. SeaWorld Parks and Entertainment, Inc., Case No. CGC-15-545292 (the “Anderson Matter”). The putative class consists of all consumers within California who, within the past four years, purchased tickets to SeaWorld San Diego. On May 11, 2015, the plaintiffs filed a First Amended Class Action Complaint (the “Amended Complaint”). The Amended Complaint alleges causes of action under the California False Advertising Law, California Unfair Competition Law and California Consumers Legal Remedies Act. Plaintiffs’ claims are based on their allegations that the Company misrepresented the physical living conditions and care and treatment of its killer whales, resulting in confusion or misunderstanding among ticket purchasers, and omitted material facts regarding its killer whales with intent to deceive and mislead the plaintiff and purported class members. The Amended Complaint seeks actual damages, equitable relief, attorneys’ fees and costs. Based on Plaintiff’s definition of the class, the amount in controversy exceeds $5,000, but the liability exposure is speculative until the size of the class is determined (if certification is granted at all). On May 14, 2015, the Company removed the case to the United States District Court for the Northern District of California, Case No. 15:cv-2172-SC. The case is in the preliminary stages and a response to the Amended Complaint has not yet been filed. On May 19, 2015, the plaintiffs filed a motion to remand. This motion is set for hearing on August 28, 2015.

On May 14, 2015, the Company filed a motion before the Judicial Panel on Multidistrict Litigation to have the Hall, Gaab, Simo, and Anderson Matters centralized and transferred to the Middle District of Florida, Orlando Division. The hearing on the Company’s motion to transfer was held on July 30, 2015 and on August 5, 2015 the Judicial Panel denied the Company’s motion. The Company believes that these consumer class action lawsuits are without merit and intends to defend these lawsuits vigorously; however, there can be no assurance regarding the ultimate outcome of these lawsuits.

Other Matters

The Company is a party to other various claims and legal proceedings arising in the normal course of business. From time to time, third-party groups may also bring lawsuits against the Company. Matters where an unfavorable outcome to the Company is probable and which can be reasonably estimated are accrued. Such accruals, which are not material for any period presented, are based on information known about the matters, the Company’s estimate of the outcomes of such matters, and the Company’s experience in contesting, litigating and settling similar matters. Matters that are considered reasonably possible to result in a material loss are not accrued for, but an estimate of the possible loss or range of loss is disclosed, if such amount or range can be determined. Management does not expect any known claims or legal proceedings to have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

11. EQUITY-BASED COMPENSATION

In accordance with ASC 718, Compensation-Stock Compensation, the Company measures the cost of employee services rendered in exchange for share-based compensation based upon the grant date fair market value. The cost, net of estimated forfeitures, is recognized over the requisite service period, which is generally the vesting period unless service or performance conditions require otherwise. The Company has granted stock options, time-vesting restricted share awards and performance-vesting restricted share awards. The Company uses the Black-Scholes Option Pricing Model to value its stock options and the closing stock price on the date of grant to value both its time-vesting and performance-vesting restricted share awards.

18

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

The Company has reserved 15,000,000 shares of common stock for issuance under the Company’s 2013 Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan is administered by the Compensation Committee of the Board of Directors, and provides that the Company may grant equity incentive awards to eligible employees, directors, consultants or advisors in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based and performance compensation awards. If an award under the Omnibus Incentive Plan terminates, lapses, or is settled without the payment of the full number of shares subject to the award, the undelivered shares may be granted again under the Omnibus Incentive Plan.

As of June 30, 2015, there were 11,359,427 shares of common stock available for future issuance under the Company’s Omnibus Incentive Plan. Total equity compensation expense was $1,398 and $3,251 for the three and six months ended June 30, 2015, and $573 and $1,335 for the three and six months ended June 30, 2014, and is included in selling, general and administrative expenses and in operating expenses in the accompanying unaudited condensed consolidated statements of comprehensive income (loss). Total unrecognized equity compensation expense for all equity compensation awards probable of vesting as of June 30, 2015 was approximately $19,400 which is expected to be recognized over the respective service periods.

The activity related to the Company’s time-vesting and performance-vesting share awards during the six months ended June 30, 2015 is as follows:

						Performance-Vesting Restricted shares
	Time-Vesting Restricted shares					Bonus Performance Restricted shares					Long-Term Incentive Performance Restricted shares					2.25x Performance Restricted shares					2.75x Performance Restricted shares
	Shares			Weighted Average Grant Date Fair Value per Share		Shares			Weighted Average Grant Date Fair Value per Share		Shares			Weighted Average Grant Date Fair Value per Share		Shares			Weighted Average Grant Date Fair Value per Share		Shares			Weighted Average Grant Date Fair Value per Share
Outstanding at December 31, 2014		164,545		$	11.68		—			—		—			—		1,451,453		$	20.96		1,451,453		$	12.61
Granted		667,441		$	19.06		447,627		$	19.02		75,832		$	18.96		—			—		—			—
Vested		(154,325	)	$	14.45		—			—		—			—		—			—		—			—
Forfeited		(51,214	)	$	11.81		(14,164	)	$	18.96		(8,345	)	$	18.96		(77,791	)	$	22.89		(77,791	)	$	15.75
Outstanding at June 30, 2015		626,447		$	18.85		433,463		$	19.03		67,487		$	18.96		1,373,662		$	20.81		1,373,662		$	12.36

The activity related to the Company’s stock option awards during the six months ended June 30, 2015 is as follows:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2014		—			—
Granted		1,992,594		$	19.53
Exercised		—			—
Forfeited		(58,166	)	$	18.96
Outstanding at June 30, 2015		1,934,428		$	19.55		9.7	$	8,710
Exercisable at June 30, 2015		—			—		—		—

Key weighted-average assumptions utilized in the Black-Scholes Option Pricing Model for stock options granted during the six months ended June 30, 2015 were:

Grant date fair value	$	4.50
Risk-free interest rate		1.63	%
Expected volatility		36.67	%
Expected dividend yield		4.28	%
Expected life (in years)		6.25

19

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

The expected life was estimated using the simplified method, as the Company does not have sufficient historical exercise data due to the limited period of time its common stock has been publicly traded. In addition, due to the Company’s limited history as a public company, the volatility for the Company’s stock at the date of each grant was estimated using the average volatility calculated for a peer group, which is based upon daily price observations over the estimated term of options granted.

2015 Bonus Plan Grant

On March 3, 2015, the Board approved an annual bonus plan (the “2015 Bonus Plan”) for the fiscal year ending December 31, 2015 (the “Fiscal 2015”) under which certain employees are eligible to receive a bonus with respect to Fiscal 2015, payable 50% in cash and 50% in performance-vesting restricted shares (the “Bonus Performance Restricted shares”) based upon the Company’s achievement of pre-established performance goals with respect to Adjusted EBITDA. Once Adjusted EBITDA is finalized for Fiscal 2015, the Bonus Performance Restricted shares vest if the performance goal is met and forfeit immediately if the performance goal is not met or if the employee terminates prior to the last day of Fiscal 2015. Subsequent grants were made on July 1 and may be made on October 1, 2015 to newly hired bonus-eligible employees based on their hire date and/or to certain newly promoted employees.

In accordance with ASC 718, equity compensation expense is not recorded until the performance condition is probable of being achieved. Based on the Company’s progress toward the Adjusted EBITDA performance goal, the Bonus Performance Restricted shares are not considered probable of vesting as of June 30, 2015; therefore, no equity compensation expense has been recorded related to these shares. If the performance condition is considered probable of being achieved in a subsequent period, all equity compensation expense that would have been recorded over the requisite service period had the condition been considered probable from inception, will be recorded as a cumulative catch-up at such subsequent date. Total unrecognized equity compensation expense related to the Bonus Performance Restricted shares not considered probable of vesting was approximately $8,200 as of June 30, 2015.

2015 Long-Term Incentive Plan Grant

On March 3, 2015, the Board also approved a long-term incentive plan grant (the “2015 Long-Term Incentive Plan”) for Fiscal 2015 comprised of nonqualified stock options (“Long-Term Incentive Options”), time-vesting restricted shares (“Long-Term Incentive Time Restricted shares”) and performance-vesting restricted shares (“Long-Term Incentive Performance Restricted shares”) to certain of the Company’s management and executive officers. Subsequent grants were made on July 1 and may be made on October 1, 2015 to newly hired or promoted management and executive officers as deemed appropriate.

Long-Term Incentive Options

The Long-Term Incentive Options vest ratably over four years from the date of grant (25% per year), subject to continued employment through the applicable vesting date and will expire 10 years from the date of grant or earlier if the employee’s service terminates. The options have an exercise price per share equal to the closing price of the Company’s common stock on the date of grant. Equity compensation expense will be recognized using the straight line method over the four year vesting period.

Time-Vesting Restricted Shares

The Long-Term Incentive Time Restricted shares vest ratably over four years from the date of grant (25% per year), subject to continued employment through the applicable vesting date. Equity compensation expense will be recognized using the straight line method over the four year vesting period.

Performance-Vesting Restricted Stock

The Long-Term Incentive Performance Restricted shares vest following the end of a three-year performance period beginning on January 1, 2015 and ending on December 31, 2017 based upon the Company’s achievement of certain performance goals with respect to Adjusted EBITDA for each fiscal year performance period. The total number of shares eligible to vest is based on the level of achievement of the Adjusted EBITDA target for each fiscal year in the performance period which ranges from 0% (if below threshold performance), to 50% (for threshold performance), to 100% (for target performance), and up to 200% (at or above maximum performance). For actual performance between the specified threshold, target, and maximum levels, the resulting vesting percentage will be adjusted on a linear basis. Total shares earned (approximately 33% are eligible to be earned per year) based on the actual performance percentage for each performance year will vest on the date the Company’s Compensation Committee determines the actual performance percentage for fiscal year 2017 if the employee has not terminated prior to the last day of fiscal year 2017 and all unearned shares will forfeit immediately as of such date. The Adjusted EBITDA target for each fiscal year will be set in the first quarter of each respective year, at which time the grant date and the grant-date fair value for accounting purposes related to that performance year will be established based on the closing price of the Company’s stock on such date. Equity compensation expense will be recognized ratably for each fiscal year, if the performance condition is probable of being achieved, beginning on the date of grant and through the end of the final performance period on December 31, 2017.

20

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

During the six months ended June 30, 2015, the Company awarded 202,491 Long-Term Incentive Performance Restricted shares, net of forfeitures, under the 2015 Long-Term Incentive Plan, which represents the total shares that could be earned under the maximum performance level of achievement for all three performance periods combined, with approximately one-third related to each respective performance period. The performance goal for the first performance period was established as of the award date, as such, for accounting purposes, 67,487 of these shares have a grant date of March 3, 2015 and a grant-date fair value per share of $18.96 determined using the closing price of the Company’s common stock on the date of grant. The performance targets for the second and third performance periods have not yet been set and will be determined by the Compensation Committee during the first quarter of each respective fiscal year, at which time, for accounting purposes, the grant date and respective grant-date fair value will be determined for those related shares. As the Long-Term Incentive Performance Restricted shares have both a service and a performance condition, the requisite service period over which equity compensation expense will be recognized once the performance condition is probable of achievement begins on the date of grant and extends through December 31, 2017. Based on the Company’s progress toward the Adjusted EBITDA performance goal for the first performance period, a percentage of the target performance level for the first performance period is considered probable, as such 21,597 Long-Term Incentive Performance Restricted shares related to the 2015 performance year are considered probable of vesting as of June 30, 2015. Total unrecognized equity compensation expense related to the first performance period expected to be recognized over the remaining vesting term if performance conditions continue to be probable of vesting at the current percentage of the target performance level was approximately $365 as of June 30, 2015. Unrecognized equity compensation expense related to the maximum performance level for the first performance period is an additional $870 as of June 30, 2015. Total unrecognized equity compensation expense related to the second and third performance periods has not been determined as the grant date and grant-date fair value for these awards have not yet occurred for accounting purposes, as such no expense has been recorded related to the second and third performance periods.

Other 2015 Grants

On January 15, 2015, the Company granted 100,000 time-vesting restricted shares to its Interim Chief Executive Officer (the “Interim CEO”) in accordance with his appointment to such role. The shares had a grant date fair value per share of $16.50 and a vest date on the earlier of the start date of a new Chief Executive Officer or June 30, 2015. As a new Chief Executive Officer was appointed with a start date of April 7, 2015, these shares fully vested on such date accordingly. Also during the six months ended June 30, 2015, the Company granted 49,284 of time-vesting restricted shares to certain Board members. These shares vest ratably over a three-year term.

On April 7, 2015, in connection with the appointment of the Company’s new President and Chief Executive Officer, the Company granted 27,623 Bonus Performance Restricted shares, 249,875 time-vesting restricted shares and 1,089,324 nonqualified stock options to the Company’s President and Chief Executive Officer. The time-vesting restricted shares and the nonqualified stock options vest ratably over four years.

2.25x and 2.75x Performance Restricted Shares

The Company has outstanding under both its Omnibus Incentive Plan and its previous incentive plan (the “Pre-IPO Incentive Plan”) certain performance-vesting restricted shares consisting of 2.25x and 2.75x Performance Restricted shares. The 2.25x Performance Restricted shares will vest if the employee is employed by the Company when and if certain investment funds affiliated with Blackstone receive cash proceeds (not subject to any clawback, indemnity or similar contractual obligation) in respect of their Partnerships units equal to (x) a 20% annualized effective compounded return rate on such funds’ investment and (y) a 2.25x multiple on such funds’ investment. The 2.75x Performance Restricted shares will vest if the employee is employed by the Company when and if such funds receive cash proceeds (not subject to any clawback, indemnity or similar contractual obligation) in respect of their Partnerships units equal to (x) a 15% annualized effective compounded return rate on such funds’ investment and (y) a 2.75x multiple on such funds’ investment.

No equity compensation expense will be recorded related to the 2.25x and 2.75x Performance Restricted shares until their vesting is probable. Accordingly, no equity compensation expense has been recorded during the three and six months ended June 30, 2015 or 2014 related to these 2.25x and 2.75x Performance Restricted shares. Total unrecognized equity compensation expense as of June 30, 2015, was approximately $29,000 and $17,000 for the 2.25x and 2.75x Performance Restricted shares, respectively.

Based on cash proceeds previously received by certain investment funds affiliated with Blackstone from the Company’s initial public offering and subsequent secondary offerings of stock, the Company’s repurchase of shares and the cumulative dividends paid by the Company through July 1, 2015, if such funds receive additional future cash proceeds of approximately $7,000 and other vesting conditions are satisfied, the 2.25x Performance Restricted shares will vest. Similarly, if such funds receive additional future cash proceeds of approximately $435,000 and other vesting conditions are satisfied, the 2.75x Performance Restricted shares will vest. As receipt of these future cash proceeds will be primarily related to liquidity events, such as secondary offerings of stock, the shares are not considered probable of vesting until such events are consummated.

21

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

12. STOCKHOLDERS’ EQUITY

As of June 30, 2015, 90,303,587 shares of common stock were issued on the accompanying unaudited condensed consolidated balance sheet, which excludes 4,009,725 unvested shares of common stock held by certain participants in the Company’s equity compensation plans (see Note 11–Equity-Based Compensation) and includes 4,105,970 shares of treasury stock held by the Company.

Dividends

The Board has adopted a policy to pay, subject to legally available funds, a regular quarterly dividend. The payment of cash dividends is within the discretion of the Board and depends on many factors, including, but not limited to, the Company’s results of operations, financial condition, level of indebtedness, capital requirements, contractual restrictions, restrictions in its debt agreements and in any preferred stock, business prospects and other factors that the Board may deem relevant.

In the six months ended June 30, 2015, the Board declared or paid quarterly cash dividends to all common stockholders of record as follows:

Record Date	Payment Date	Cash Dividend per Common Share
January 13, 2015	January 22, 2015	$	0.21
March 13, 2015	April 1, 2015	$	0.21
June 22, 2015	July 1, 2015	$	0.21

As the Company had an accumulated deficit at the time the March 13 and June 22, 2015 dividends were declared, these dividends were accounted for as a return of capital and recorded as a reduction to additional paid-in capital on the accompanying unaudited condensed consolidated statement of changes in stockholders’ equity. Dividends declared to common stockholders were $54,482 in the six months ended June 30, 2015. The Company expects that for tax purposes, a portion of these dividends will be treated as a return of capital to stockholders.

As of June 30, 2015, the Company had $18,391 of cash dividends recorded as dividends payable in the accompanying unaudited condensed consolidated balance sheet, of which approximately $18,100 was paid on July 1, 2015. The remainder of the dividends payable relates to unvested time restricted shares and unvested performance restricted shares with a performance condition considered probable of being achieved. These shares carry dividend rights and therefore the dividends will be paid as the shares vest in accordance with the underlying stock compensation grants. These dividend rights will be forfeited if the shares do not vest.

Dividends on the 2.25x and 2.75x Performance Restricted shares were approximately $2,540 for each tranche and will accumulate and be paid only if and to the extent these 2.25x and 2.75x Performance Restricted shares vest in accordance with their terms. Dividends on the Bonus Performance Restricted shares were approximately $177 and will accumulate and be paid only if these shares vest in accordance with their terms. Dividends on the Long-Term Incentive Performance Restricted shares related to the first performance period were approximately $28, of which approximately $9 was recorded related to the portion of the shares considered probable of vesting. The remainder will accumulate and be paid only if the respective shares vest in accordance with their terms. The Company does not record a dividend payable when the performance conditions on the related unvested shares are not considered probable of being achieved.

Secondary Offerings and Share Repurchases

In April 2014, the selling stockholders completed an underwritten secondary offering of 17,250,000 shares of common stock. The selling stockholders received all of the net proceeds from the offering and no shares were sold by the Company. In the three and six months ended June 30, 2014, the Company incurred fees and expenses of $73 and $747, respectively, in connection with the secondary offering, which is shown as secondary offering expense on the accompanying unaudited condensed consolidated statements of comprehensive income (loss).

22

SEAWORLD ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share amounts)

Concurrently with the closing of the secondary offering in April 2014, the Company repurchased 1,750,000 shares of its common stock directly from the selling stockholders in a private, non-underwritten transaction at a price per share equal to the price per share paid to the selling stockholders by the underwriters in the secondary offering.

On August 12, 2014, the Board authorized the repurchase of up to $250,000 of the Company’s common stock (the “Share Repurchase Program”). Under the Share Repurchase Program, the Company is authorized to repurchase shares through open market purchases, privately-negotiated transactions or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Exchange Act. The Share Repurchase Program has no time limit and may be suspended or discontinued completely at any time. The number of shares to be purchased and the timing of purchases will be based on the level of the Company’s cash balances, general business and market conditions, and other factors, including legal requirements, debt covenant restrictions and alternative investment opportunities.

Pursuant to the Share Repurchase Program, during the fourth quarter of 2014, the Company repurchased a total of 855,970 shares of common stock at an average price of $17.50 per share and a total cost of approximately $15,000, leaving $235,000 available for future repurchases under the Share Repurchase Program. During the six months ended June 30, 2015, the Company paid $5,650 for settlement of shares repurchased in December 2014. No shares were repurchased in the six months ended June 30, 2015 under the Share Repurchase Program.

All of the repurchased shares from the Share Repurchase Program and shares repurchased directly from the selling stockholders during previous secondary offerings were recorded as treasury stock at a total cost of $109,871 as of June 30, 2015 and December 31, 2014 and are reflected as a reduction to stockholders’ equity on the accompanying unaudited condensed consolidated balance sheets and unaudited condensed consolidated statement of changes in stockholders’ equity.

13. RESTRUCTURING PROGRAM

In December 2014, the Company implemented a restructuring program in an effort to centralize certain operations and reduce duplication of functions to increase efficiencies (the “Restructuring Program”). The Restructuring Program involved the elimination of approximately 300 positions across the Company’s eleven theme parks and corporate headquarters. As a result, the Company has incurred total cumulative costs of $11,834 in pre-tax restructuring and other related costs associated with this Restructuring Program, of which $122 and $267 was incurred in the three and six months ended June 30, 2015, respectively, on the accompanying unaudited condensed consolidated statements of comprehensive income (loss). The Company does not expect to incur any additional costs associated with the Restructuring Plan as all continuing service obligations were completed as of June 30, 2015.

The Restructuring Program activity for the six months ended June 30, 2015 was as follows:

	Severance and Other Employment Expenses
Liability as of December 31, 2014	$	7,691
Costs incurred		267
Payments made		(7,958	)
Liability as of June 30, 2015	$	—

23

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion contains management’s discussion and analysis of our financial condition and results of operations and should be read together with the unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements that reflect our plans, estimates and beliefs and involve numerous risks and uncertainties, including but not limited to those described in the “Risk Factors” section of our Annual Report on Form 10-K, as such risk factors may be updated from time to time in our periodic filings with the SEC. Actual results may differ materially from those contained in any forward-looking statements. You should carefully read “Special Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q.

Business Overview

We are a leading theme park and entertainment company delivering personal, interactive and educational experiences that blend imagination with nature and enable our customers to celebrate, connect with and care for the natural world we share. We own or license a portfolio of globally recognized brands, including SeaWorld, Shamu and Busch Gardens. Over our more than 50-year history, we have built a diversified portfolio of 11 destination and regional theme parks that are grouped in key markets across the United States, many of which showcase our one-of-a-kind zoological collection of approximately 89,000 marine and terrestrial animals. Our theme parks feature a diverse array of rides, shows and other attractions with broad demographic appeal which deliver memorable experiences and a strong value proposition for our guests. During the three months ended June 30, 2015, we hosted approximately 6.5 million guests in our theme parks, including approximately 0.8 million international guests. In the three months ended June 30, 2015, we generated total revenues of $391.6 million and net income of $5.8 million. During the six months ended June 30, 2015, we hosted approximately 9.7 million guests in our theme parks, including approximately 1.4 million international guests. In the six months ended June 30, 2015, we generated total revenues of $606.2 million and incurred a net loss of $37.8 million.

Revision of Prior Period Financial Statements

During the third quarter of 2014, we identified and corrected immaterial errors related to accounting for certain debt transactions in 2013, 2012 and 2011. Refer to the “Revision of Previously Issued Financial Statements” section of Note 6– Long-Term Debt, in our notes to the unaudited condensed consolidated financial statements, for further details. Accordingly, we have revised previously issued financial statements contained in this Quarterly Report on Form 10-Q to correct the effect of these immaterial errors for the corresponding periods. Management’s discussion and analysis included herein is based on the revised financial results for the three and six months ended June 30, 2014.

Key Business Metrics Evaluated by Management

Attendance

We define attendance as the number of guest visits to our theme parks. Attendance drives admissions revenue to our theme parks as well as total in-park spending. The level of attendance at our theme parks is a function of many factors, including the opening of new attractions and shows, weather, global and regional economic conditions, competitive offerings and overall consumer confidence in the economy.

Total Revenue Per Capita

Total revenue per capita, defined as total revenue divided by total attendance, consists of admission per capita and in-park per capita spending:

• Admission Per Capita. We calculate admission per capita for any period as total admissions revenue divided by total attendance. Theme park admissions accounted for approximately 61% and 62% of our total revenue for the three and six months ended June 30, 2015, respectively. For the second quarter of 2015, we reported $36.81 in admission per capita, representing a decrease of 2.8% from the second quarter of 2014. For the six months ended June 30, 2015, we reported $38.72 in admission per capita, representing a decrease of 3.6% from the six months ended June 30, 2014. Admission per capita is driven by ticket pricing, the admissions product mix and the park attendance mix. The admissions product mix is defined as the mix of tickets purchased such as single day, multi-day and annual passes and the park attendance mix is defined as the mix of theme parks visited. The mix of theme parks visited can impact admission per capita based on the theme park’s respective pricing.

• In-Park Per Capita Spending. We calculate in-park per capita spending for any period as total food, merchandise and other revenue divided by total attendance. For the three and six months ended June 30, 2015, food, merchandise and other revenue accounted for approximately 39% and 38% of our total revenue, respectively. For the second quarter of 2015, we reported $23.64 of in-park per capita spending, a slight decrease of 0.2% from the second quarter of 2014. For the six months ended June 30, 2015, we reported $23.83 of in-park per capita spending, a decrease of 0.6% from the six months ended June 30, 2014. In-park per capita spending is driven by pricing changes, penetration levels (percentage of guests purchasing), new product offerings, the mix of guests (such as local, domestic or international guests) and the mix of in-park spending.

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Trends Affecting Our Results of Operations

In 2014, we experienced negative attendance trends beginning in the second quarter which we believe resulted from a combination of factors affecting our destination parks, including negative media attention in California and a challenging competitive environment in Florida. To address our near term challenges, we adjusted our attraction and marketing plans, launched a new reputation campaign and executed a cost savings plan which is expected to deliver approximately $50.0 million of annual cost savings by the end of 2015 (the “Cost Savings Plan”). We expect the impact of these cost reductions will be largely offset by normal inflationary increases in labor and other expenses and an increase in marketing spending.

Our ability to attract and retain customers depends, in part, upon the external perceptions of our brands and reputation. Adverse publicity concerning our business generally could harm our brands, reputation and results of operations. The considerable expansion in the use of social media over recent years has amplified the impact of negative publicity. Recently, our business and our SeaWorld-branded parks have been the target of negative media attention, particularly in the state of California and we believe we have experienced demand pressures in California, partly due to such media attention. We have introduced a number of initiatives, including new marketing and reputation campaigns to address public perceptions and raise and protect brand awareness. We also introduced a number of promotions in an effort to increase demand.

In the first half of 2015, we experienced slight attendance growth when compared to the first half of 2014 primarily due to an improvement in demand at most of our parks due to increased promotional offerings, strong passholder visitation and consumer event programs, along with favorable weather in Florida. These factors were largely offset by the impact of reduced attendance in Texas, mainly related to record levels of rainfall during the period and reduced attendance in California, primarily related to brand challenges. Looking ahead, we remain cautious as we recognize that fully resolving our brand challenges in California requires sustained focus and commitment and the competitive pressures in Florida will take time and investment to address. We expect our marketing and reputation campaigns will be long-term in nature. Both attendance and total revenue per capita at our theme parks are key drivers of our revenue and profitability, and reductions in either can materially adversely affect our business, financial condition, results of operations and cash flows.

Seasonality

The theme park industry is seasonal in nature. Based upon historical results, we generate the highest revenues in the second and third quarters of each year, in part because six of our theme parks are only open for a portion of the year. Approximately two-thirds of our attendance and revenues are generated in the second and third quarters of the year and we typically incur a net loss in the first and fourth quarters. The mix of revenues by quarter is relatively constant, but revenues can shift between the first and second quarters due to the timing of Easter or between the first and fourth quarters due to the timing of Christmas and New Year’s. Even for our five theme parks open year-round, attendance patterns have significant seasonality, driven by holidays, school vacations and weather conditions. One of our goals in managing our business is to continue to generate cash flow throughout the year and minimize the effects of seasonality. In recent years, we have begun to encourage attendance during non-peak times by offering a variety of seasonal programs and events, such as shows for kids, special concert series, and Halloween and Christmas events. In addition, during seasonally slow times, operating costs are controlled by reducing operating hours and show schedules. Employment levels required for peak operations are met largely through part-time and seasonal hiring.

Principal Factors Affecting Our Results of Operations

Revenues

Our revenues are driven primarily by attendance in our theme parks and the level of per capita spending for admission to the theme parks and per capita spending inside the theme parks for culinary, merchandise and other in-park experiences. The level of attendance in our theme parks is a function of many factors, including the opening of new attractions and shows, weather, global and regional economic conditions, competitive offerings and consumer confidence. Admission per capita is driven by ticket pricing, the mix of ticket type purchased (such as single day, multi-day, and annual pass) and the mix of theme parks visited. In-park per capita spending is driven by pricing changes, penetration levels (percentage of guests purchasing), new product offerings, the mix of guests (such as local, domestic or international guests) and the mix of in-park spending. For other factors affecting our revenues, see the “Risk Factors” section of our Annual Report on Form 10-K, as such risk factors may be updated from time to time in our periodic filings with the SEC.

In addition to the theme parks, we are also involved in entertainment, media, and consumer product businesses that leverage our intellectual property. While these businesses currently do not represent a material percentage of our revenue, they are important strategic drivers in terms of consumer awareness and brand building. We aim to expand these businesses into a greater source of revenue in the future.

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Costs and Expenses

The principal costs of our operations are employee salaries and benefits, advertising, maintenance, animal care, utilities and insurance. Factors that affect our costs and expenses include commodity prices, costs for construction, repairs and maintenance, other inflationary pressures and attendance levels. A large portion of our expenses is relatively fixed because the costs for full-time employees, maintenance, animal care, utilities, advertising and insurance do not vary significantly with attendance. For factors affecting our costs and expenses, see the “Risk Factors” section of our Annual Report on Form 10-K, as such risk factors may be updated from time to time in our periodic filings with the SEC.

As part of the Cost Savings Plan, in December 2014, we implemented a restructuring program (“the Restructuring Program”) which involved the elimination of approximately 300 positions in an effort to centralize certain operations and reduce duplication of functions to increase efficiencies. For further details, refer to Note 13–Restructuring Program in our notes to the unaudited condensed consolidated financial statements.

We barter theme park admission products for advertising and various other products and services. The fair value of the admission products is recognized into admissions revenue and related expenses at the time of the exchange and approximates the estimated fair value of the goods or services received or provided, whichever is more readily determinable.

Results of Operations

The following discussion provides an analysis of our operating results for the three and six months ended June 30, 2015 and 2014. This data should be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q.

Comparison of the Three Months Ended June 30, 2015 and 2014

The following table presents key operating and financial information for the three months ended June 30, 2015 and 2014:

	For the Three Months Ended
	June 30,
	2015		2014
	(Unaudited, in thousands, except per capita data)
Summary financial data:
Net revenues:
Admissions	$	238,451	$	249,263
Food, merchandise and other		153,165		155,888
Total revenues		391,616		405,151
Costs and expenses:
Cost of food, merchandise and other revenues		31,112		33,651
Operating expenses (exclusive of depreciation and amortization shown separately below)		191,202		189,190
Selling, general and administrative		73,320		58,564
Restructuring and other related costs		122		—
Secondary offering costs		—		73
Depreciation and amortization		50,110		43,086
Total costs and expenses		345,866		324,564
Operating income		45,750		80,587
Other expense (income), net		209		(45	)
Interest expense		15,732		20,526
Loss on early extinguishment of debt and write-off of discounts and debt issuance costs		20,348		—
Income before income taxes		9,461		60,106
Provision for income taxes		3,652		22,700
Net income	$	5,809	$	37,406
Other data:
Attendance		6,478		6,584
Total revenue per capita	$	60.45	$	61.54

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Admissions revenue. Admissions revenue for the three months ended June 30, 2015 decreased $10.8 million (4.3%) to $238.5 million as compared to $249.3 million for the three months ended June 30, 2014. The decrease in admissions revenue was a result of a 2.8% decrease in admission per capita to $36.81 from $37.86 in the second quarter of 2014 along with a 1.6% decrease in attendance when compared to the second quarter of 2014. The decline in admission per capita relates primarily to an increase in promotional offerings and passholder visitation along with an unfavorable change in the park attendance mix for the quarter. Attendance declined in the second quarter of 2015 due to the timing of Easter which caused a shift in the spring break holiday period for some schools in our key source markets. Also contributing to the decline was reduced attendance in Texas, primarily related to record levels of rainfall during the quarter along with reduced attendance in California, primarily related to brand challenges. The impact of these factors was partially offset by improvement in demand at our other park locations. We attribute the improvement in demand to increased promotional offerings, strong passholder visitation and our consumer event programs during the period.

Food, merchandise and other revenue. Food, merchandise and other revenue for the three months ended June 30, 2015 decreased by $2.7 million (1.7%) to $153.2 million as compared to $155.9 million for the three months ended June 30, 2014. This decrease was primarily a result of a 1.6% decrease in total attendance. In-park per capita spending remained relatively flat at $23.64 in the second quarter of 2015 compared to $23.68 in the second quarter of 2014, a decrease of 0.2%.

Costs of food, merchandise and other revenues. Costs of food, merchandise and other revenues for the three months ended June 30, 2015 decreased $2.5 million (7.5%) to $31.1 million as compared to $33.7 million for the three months ended June 30, 2014. These costs represent 20.3% and 21.6% of the related revenue earned for the three months ended June 30, 2015 and 2014, respectively. The decrease as a percent of related revenue primarily results from the impact of cost reduction initiatives including leveraged buying efforts.

Operating expenses. Operating expenses for the three months ended June 30, 2015 increased $2.0 million (1.1%) to $191.2 million as compared to $189.2 million for the three months ended June 30, 2014. The increase was primarily a result of additional accrued incentive compensation cost compared to the prior year quarter offset by a decrease in other direct labor and benefit costs resulting from cost savings initiatives, including a reduction in headcount due to the Restructuring Program implemented in December 2014. Operating expenses were 48.8% of total revenues for the three months ended June 30, 2015 compared to 46.7% for the three months ended June 30, 2014.

Selling, general and administrative. Selling, general and administrative expenses for the three months ended June 30, 2015 increased $14.8 million (25.2%) to $73.3 million as compared to $58.6 million for the three months ended June 30, 2014. The increase was largely related to additional marketing costs associated with our reputation campaign as well as additional third party consulting costs and, to a lesser extent, an increase in labor and benefit costs driven by incremental equity compensation expense due to new equity grants awarded in 2015. As a percentage of total revenue, selling, general and administrative expenses were 18.7% in the second quarter of 2015 compared to 14.5% in the second quarter of 2014.

Restructuring and other related costs. Restructuring and other related costs for the three months ended June 30, 2015 represent salaries and severance for individuals with continuing service obligations, which were impacted by the Restructuring Program announced in December 2014.

Secondary offering costs. On April 9, 2014 the selling stockholders completed an underwritten secondary offering of our common stock. Pursuant to the Registration Rights Agreement, we paid all expenses related to the offering, other than underwriting discounts and commissions. No shares were sold by us in the secondary offering and the selling stockholders received all of the net proceeds from the offering. In connection with this secondary offering, we incurred fees and expenses of $0.1 million in the three months ended June 30, 2014.

Depreciation and amortization. Depreciation and amortization expense for the three months ended June 30, 2015 increased $7.0 million (16.3%) to $50.1 million as compared to $43.1 million for the three months ended June 30, 2014 due primarily to approximately $5.0 million of accelerated deprecation related to the closure of the Gwazi wooden rollercoaster at our Busch Gardens Tampa park along with additional depreciation due to the impact of new asset additions, offset by fully depreciated assets and asset retirements.

Interest expense. Interest expense for the three months ended June 30, 2015 decreased $4.8 million (23.4%) to $15.7 million as compared to $20.5 million for the three months ended June 30, 2014 due to the redemption of the 11.0% Senior Notes in April 2015, offset partially by interest related to the new Term B-3 loans. See Note 6–Long-Term Debt to our unaudited condensed consolidated financial statements and the “Our Indebtedness” section which follows for further details.

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Loss on early extinguishment of debt and write-off of discounts and debt issuance costs. Loss on early extinguishment of debt and write-off of discounts and debt issuance costs of $20.3 million for the three months ended June 30, 2015 relates to a $14.3 million premium paid for the early redemption of $260.0 million of our Senior Notes, along with a write-off of approximately $6.0 million in related discounts and debt issuance costs. See Note 6–Long-Term Debt to our unaudited condensed consolidated financial statements and the “Our Indebtedness” section which follows for further details.

Provision for income taxes. The Company reported a provision for income taxes in the three months ended June 30, 2015 of $3.7 million compared to a provision of $22.7 million for the three months ended June 30, 2014. The decrease primarily results from a lower pretax income in the second quarter of 2015 compared to the second quarter of 2014.

Comparison of the Six Months Ended June 30, 2015 and 2014

The following table presents key operating and financial information for the six months ended June 30, 2015 and 2014:

	For the Six Months Ended
	June 30,
	2015			2014
	(Unaudited, in thousands, except per capita data)
Summary financial data:
Net revenues:
Admissions	$	375,291		$	386,649
Food, merchandise and other		230,917			230,792
Total revenues		606,208			617,441
Costs and expenses:
Cost of food, merchandise and other revenues		47,015			50,411
Operating expenses (exclusive of depreciation and amortization shown separately below)		345,013			357,102
Selling, general and administrative		124,398			103,640
Restructuring and other related costs		267			—
Secondary offering costs		—			747
Depreciation and amortization		93,964			84,362
Total costs and expenses		610,657			596,262
Operating (loss) income		(4,449	)		21,179
Other expense (income), net		470			(28	)
Interest expense		35,910			40,230
Loss on early extinguishment of debt and write-off of discounts and deferred financing costs		20,348			—
Loss before income taxes		(61,177	)		(19,023	)
Benefit from income taxes		(23,388	)		(7,212	)
Net loss	$	(37,789	)	$	(11,811	)
Other data:
Attendance		9,692			9,629
Total revenue per capita	$	62.55		$	64.12

Admissions revenue. Admissions revenue for the six months ended June 30, 2015 decreased $11.4 million (2.9%) to $375.3 million as compared to $386.6 million for the six months ended June 30, 2014. The decrease in admissions revenue was a result of a 3.6% decrease in admission per capita to $38.72 in the first half of 2015 from $40.15 in the first half of 2014 slightly offset by a 0.7% increase in attendance when compared to the first six months of 2014. The decline in admission per capita relates primarily to an increase in promotional offerings and passholder visitation along with an unfavorable change in the park attendance mix compared to the prior year period. When compared to the prior year period, attendance in the first half of 2015 primarily benefited from an improvement in demand at most of our parks due to increased promotional offerings, strong passholder visitation and our consumer event programs during the period along with improved weather in Florida. The favorable effect of these factors was largely offset by reduced attendance in Texas, mainly related to record levels of rainfall, and reduced attendance in California, primarily related to brand challenges.

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Food, merchandise and other revenue. Food, merchandise and other revenue for the six months ended June 30, 2015 increased by $0.1 million (0.1%) to $230.9 million as compared to $230.8 million for the six months ended June 30, 2014. This increase was primarily a result of a 0.7% increase in total attendance, which was slightly offset by a decrease in in-park per capita spending to $23.83 in the first half of 2015 from $23.97 in the first half of 2014.

Costs of food, merchandise and other revenues. Costs of food, merchandise and other revenues for the six months ended June 30, 2015 decreased $3.4 million (6.7%) to $47.0 million as compared to $50.4 million for the six months ended June 30, 2014. These costs represent 20.4% and 21.8% of the related revenue earned for the six months ended June 30, 2015 and 2014, respectively. The decrease as a percent of related revenue primarily results from the impact of cost reduction initiatives including leveraged buying efforts.

Operating expenses. Operating expenses for the six months ended June 30, 2015 decreased $12.1 million (3.4%) to $345.0 million as compared to $357.1 million for the six months ended June 30, 2014. The decrease was primarily a result of cost savings initiatives including a reduction in headcount resulting from the Restructuring Program implemented in December 2014 and a decrease in entertainment-related costs due primarily to reduced show offerings in the first half of 2015. Operating expenses were 56.9% of total revenues for the six months ended June 30, 2015 compared to 57.8% for the six months ended June 30, 2014.

Selling, general and administrative. Selling, general and administrative expenses for the six months ended June 30, 2015 increased $20.8 million (20.0%) to $124.4 million as compared to $103.6 million for the six months ended June 30, 2014. The increase was largely related to additional marketing costs associated with our reputation campaign along with an increase in third party consulting costs as well as an increase in equity compensation expense due to new equity grants awarded in 2015. As a percentage of total revenue, selling, general and administrative expenses were 20.5% in the six months ended June 30, 2015 compared to 16.8% in the six months ended June 30, 2014.

Restructuring and other related costs. Restructuring and other related costs for the six months ended June 30, 2015 represent salaries and severance for individuals with continuing service obligations, which were impacted by the Restructuring Program announced in December 2014.

Secondary offering costs. On April 9, 2014 the selling stockholders completed an underwritten secondary offering of our common stock. Pursuant to the Registration Rights Agreement, we paid all expenses related to the offering, other than underwriting discounts and commissions. No shares were sold by us in the secondary offering and the selling stockholders received all of the net proceeds from the offering. In connection with this secondary offering, we incurred fees and expenses of $0.7 million in the six months ended June 30, 2014.

Depreciation and amortization. Depreciation and amortization expense for the six months ended June 30, 2015 increased $9.6 million (11.4%) to $94.0 million as compared to $84.4 million for the six months ended June 30, 2014 due primarily to approximately $5.0 million of accelerated depreciation related to the closure of the Gwazi wooden rollercoaster at our Busch Gardens Tampa park along with additional depreciation due to the impact of new asset additions, offset by fully depreciated assets and asset retirements.

Interest expense. Interest expense for the six months ended June 30, 2015 decreased $4.3 million (10.7%) to $35.9 million as compared to $40.2 million for the six months ended June 30, 2014 due to the redemption of the 11.0% Senior Notes in April 2015, offset partially by interest related to the new Term B-3 loans. See Note 6–Long-Term Debt to our unaudited condensed consolidated financial statements and the “Our Indebtedness” section which follows for further details.

Loss on early extinguishment of debt and write-off of discounts and debt issuance costs. Loss on early extinguishment of debt and write-off of discounts and debt issuance costs of $20.3 million for the six months ended June 30, 2015 relates to a $14.3 million premium paid for the early redemption of $260.0 million of our Senior Notes, along with a write-off of approximately $6.0 million in related discounts and debt issuance costs. See Note 6–Long-Term Debt to our unaudited condensed consolidated financial statements and the “Our Indebtedness” section which follows for further details.

Benefit from income taxes. The Company reported a benefit from income taxes in the six months ended June 30, 2015 of $23.4 million compared to a benefit of $7.2 million for the six months ended June 30, 2014. The additional benefit results from a higher pretax loss in the first half of 2015 compared to the first half of 2014.

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Liquidity and Capital Resources

Overview

Our principal sources of liquidity are cash generated from operations, funds from borrowings and existing cash on hand. Our principal uses of cash include the funding of working capital obligations, debt service, investments in theme parks (including capital projects), and common stock dividends. As of June 30, 2015, we had a working capital deficit of approximately $155.0 million. We typically operate with a working capital deficit and we expect that we will continue to have working capital deficits in the future. The working capital deficits are due in part to a significant deferred revenue balance from revenues paid in advance for our theme park admissions products and high turnover of in-park products that results in a limited inventory balance. Our cash flow from operations, along with our revolving credit facilities have allowed us to meet our liquidity needs while maintaining a working capital deficit.

As market conditions warrant and subject to our contractual restrictions and liquidity position, we, our affiliates and/or our major stockholders, including Blackstone and its affiliates, may from time to time repurchase our outstanding equity and/or debt securities, including our outstanding bank loans in privately negotiated or open market transactions, by tender offer or otherwise. Any such repurchases may be funded by incurring new debt, including additional borrowings under the Senior Secured Credit Facilities. Any new debt may also be secured debt. We may also use available cash on our balance sheet. The amounts involved in any such transactions, individually or in the aggregate, may be material. Further, since some of our debt may trade at a discount to the face amount among current or future syndicate members, any such purchases may result in our acquiring and retiring a substantial amount of any particular series, with the attendant reduction in the trading liquidity of any such series.

Dividends

The Company’s Board of Directors (the “Board”) has adopted a policy to pay, subject to legally available funds, a regular quarterly dividend. Dividends paid to stockholders were $36.3 million in the six months ended June 30, 2015, related primarily to dividend declarations to stockholders of record as of January 13 and March 13, 2015. On July 1, 2015, an additional $18.1 million in dividends were paid related to a dividend declaration to stockholders of record as of June 22, 2015. The amount and timing of any future dividends payable on our common stock is within the sole discretion of the Board. The Company expects that for tax purposes, a portion of the dividends paid in 2015 will be treated as a return of capital to stockholders.

Approximately $0.3 million of dividends declared through June 30, 2015 relate to unvested time restricted shares and unvested performance restricted shares with a performance condition considered probable of being achieved and will be paid if the awards vest in accordance with their terms. Dividends on certain performance-vesting restricted share awards which are not considered probable of vesting were approximately $5.3 million and will accumulate and be paid only if and to the extent the shares vest in accordance with their terms.

See Note 12–Stockholders’ Equity to our unaudited condensed consolidated financial statements for further details on our dividend activity and the “Covenant Compliance” section which follows for further details on covenants that could restrict our ability to make certain restricted payments, including dividend payments and share repurchases.

Share Repurchases

On August 12, 2014, our Board authorized a share repurchase program of up to $250.0 million of our common stock (the “Share Repurchase Program”). Under the Share Repurchase Program, the Company is authorized to repurchase shares through open market purchases, privately-negotiated transactions or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Exchange Act. The Share Repurchase Program has no time limit and may be suspended or discontinued completely at any time. The number of shares to be purchased and the timing of purchases will be based on the level of the Company’s cash balances, general business and market conditions, and other factors, including legal requirements, debt covenant restrictions and alternative investment opportunities.

Pursuant to the Share Repurchase Program, during the fourth quarter of 2014, we repurchased a total of 855,970 shares of common stock at an average price of $17.50 per share and a total cost of approximately $15.0 million, leaving $235.0 million available for future repurchases under the Share Repurchase Program. In January 2015, we paid $5.7 million for settlement of shares repurchased in December 2014. No shares were repurchased in the six months ended June 30, 2015.

Other

In June 2015, we entered into five forward interest rate swap agreements (“the Forward Swaps”) to effectively fix the interest rate on the three month LIBOR-indexed interest payments associated with $1.0 billion of our outstanding long-term debt. The Forward Swaps have an effective date of September 30, 2016; have a total notional amount of $1.0 billion and mature on May 14, 2020.

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In April 2015, we executed a new interest rate swap agreement to effectively fix the interest rate on $250.0 million of the Term B-3 Loans under the Senior Secured Credit Facilities, as defined below. The interest rate swap has an effective date of June 30, 2015, has a notional amount of $250.0 million and is scheduled to mature on September 30, 2016. See Note 6–Long-Term Debt and Note 7–Derivative Instruments and Hedging Activities to our unaudited condensed consolidated financial statements for further details.

We believe that existing cash and cash equivalents, cash flow from operations, and available borrowings under the Senior Secured Credit Facilities will be adequate to meet the capital expenditures, dividends and working capital requirements of our operations for at least the next 12 months.

The following table presents a summary of our cash flows provided by (used in) operating, investing, and financing activities for the periods indicated:

	For the Six Months Ended June 30,
	2015			2014
	(Unaudited, in thousands)
Net cash provided by operating activities	$	142,082		$	133,509
Net cash used in investing activities		(83,713	)		(94,076	)
Net cash used in financing activities		(49,344	)		(93,268	)
Net increase (decrease) in cash and cash equivalents	$	9,025		$	(53,835	)

Cash Flows from Operating Activities

Net cash provided by operating activities was $142.1 million during the six months ended June 30, 2015 as compared to $133.5 million during the six months ended June 30, 2014. The change in net cash provided by operating activities was impacted by favorable changes in our working capital accounts, offset by the change in pretax loss.

Cash Flows from Investing Activities

Investing activities consist principally of capital investments we make in our theme parks for future attractions and infrastructure. Net cash used in investing activities during the six months ended June 30, 2015 consisted primarily of capital expenditures of $83.5 million largely related to future attractions. Net cash used in investing activities during the six months ended June 30, 2014 consisted primarily of $93.8 million of capital expenditures largely related to attractions that opened later in 2014.

The amount of our capital expenditures may be affected by general economic and financial conditions, among other things, including restrictions imposed by our borrowing arrangements. We generally expect to fund our 2015 capital expenditures through our operating cash flow.

Cash Flows from Financing Activities

Net cash used in financing activities during the six months ended June 30, 2015 was primarily attributable to $267.7 million in repayment of long-term debt, which included the early redemption of $260.0 million of our Senior Notes, $36.3 million in cash dividends paid to common stockholders, $14.3 million paid as a redemption premium related to the Senior Notes, $5.7 million used for treasury stock purchases from December 2014 that settled in January 2015, and $4.6 million paid in debt issuance costs related to the new Term B-3 Loans, offset by $280.0 million in proceeds from the issuance of the Term B-3 Loans under the Senior Secured Credit Facilities, as defined below.

Net cash used in financing activities during the six months ended June 30, 2014 was primarily attributable to $50.7 million used to repurchase 1.75 million shares of our stock, $35.4 million in cash dividends paid to common stockholders and $7.0 million paid on our Term B-2 Loan under the Senior Secured Credit Facilities, as defined below.

Our Indebtedness

The Company is a holding company and conducts its operations through its subsidiaries, which have incurred or guaranteed indebtedness as described below.

Senior Secured Credit Facilities

SeaWorld Parks and Entertainment, Inc. (“SEA”) is the borrower under our senior secured credit facilities (the “Senior Secured Credit Facilities”) pursuant to a credit agreement dated as of December 1, 2009, by and among SEA, as borrower, Bank of America, N.A., as administrative agent, collateral agent, letter of credit issuer and swing line lender and the other agents and lenders party thereto, as the same may be amended, restated, supplemented or modified from time to time. Also on December 1, 2009, SEA issued $400,000 aggregate principal amount of unsecured senior notes which were due December 1, 2016 (the “Senior Notes”).

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On March 30, 2015, SEA entered into an incremental term loan amendment, Amendment No. 7 (the “Incremental Amendment”) to its existing Senior Secured Credit Facilities. On April 7, 2015, SEA borrowed $280.0 million of additional term loans (the “Term B-3 Loans”) pursuant to the Incremental Amendment. The proceeds, along with cash on hand, were used to redeem all of the $260.0 million outstanding principal of the Senior Notes at a redemption price of 105.5% plus accrued and unpaid interest and pay fees, costs and other expenses in connection with the Term B-3 Loans. The redemption premium of $14.3 million along with a write-off of approximately $6.0 million in related discounts and debt issuance costs is included in the loss on early extinguishment of debt and write-off of discounts and debt issuance costs on the accompanying unaudited condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2015.

As of June 30, 2015, our Senior Secured Credit Facilities consisted of a $1,345.4 million senior secured term loan facility (the “Term B-2 Loans”), and $279.3 million in Term B-3 Loans which will mature on May 14, 2020 along with a $192.5 million senior secured revolving credit facility (the “Revolving Credit Facility”), which was not drawn upon as of June 30, 2015. The Revolving Credit Facility will mature on the earlier of (a) April 24, 2018 and (b) the 91st day prior to the maturity date of any indebtedness incurred to refinance any of the term loans, and includes borrowing capacity available for letters of credit and for short-term borrowings referred to as the swing line borrowings. As of June 30, 2015, SEA had approximately $18.0 million of outstanding letters of credit, leaving approximately $174.5 million available for borrowing.

The obligations under our Senior Secured Credit Facilities are fully, unconditionally and irrevocably guaranteed by each of the Company, any subsidiary of the Company that directly or indirectly owns 100% of the issued and outstanding equity interests of SEA, and, subject to certain exceptions, each of SEA’s existing and future material domestic wholly-owned subsidiaries (collectively, the “Guarantors”). Our Senior Secured Credit Facilities are collateralized by first priority or equivalent security interests in (i) all the capital stock of, or other equity interests in, substantially all SEA’s direct or indirect material wholly-owned domestic subsidiaries (subject to certain exceptions and qualifications) and 65% of the capital stock of, or other equity interests in, any of SEA’s first tier foreign subsidiaries and (ii) certain tangible and intangible assets of SEA and those of the Guarantors (subject to certain exceptions and qualifications).

Our Senior Secured Credit Facilities contain a number of customary negative covenants. Such covenants, among other things, restrict, subject to certain exceptions, the ability of SEA and its restricted subsidiaries to incur additional indebtedness; make guarantees; create liens on assets; enter into sale and leaseback transactions; engage in mergers or consolidations; sell assets; make fundamental changes; pay dividends and distributions or repurchase SEA’s capital stock; make investments, loans and advances, including acquisitions; engage in certain transactions with affiliates; make changes in nature of the business; and make prepayments of junior debt. Our Senior Secured Credit Facilities also contain covenants requiring SEA to maintain specified maximum annual capital expenditures, a maximum total net leverage ratio and a minimum interest coverage ratio.

See Note 6–Long-Term Debt to our unaudited condensed consolidated financial statements for further details concerning our long-term debt.

Covenant Compliance

As of June 30, 2015, we were in compliance with all covenants in the credit agreement governing the Senior Secured Credit Facilities.

The credit agreement governing the Senior Secured Credit Facilities provide for certain events of default which, if any of them were to occur, would permit or require the principal of and accrued interest, if any, on the loans under the Senior Secured Credit Facilities to become or be declared due and payable (subject, in some cases, to specified grace periods). Also, under the credit agreement governing the Senior Secured Credit Facilities, our ability to engage in activities such as incurring additional indebtedness, making investments, refinancing certain indebtedness, paying dividends and entering into certain merger transactions is governed, in part, by our ability to satisfy tests based on covenant Adjusted EBITDA.

The Senior Secured Credit Facilities generally defines “Adjusted EBITDA” as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, as further adjusted to exclude certain unusual, non-cash, and other items permitted in calculating covenant compliance under the Senior Secured Credit Facilities.

The Senior Secured Credit Facilities contain a number of covenants that, among other things, restrict our ability and the ability of our restricted subsidiaries to, among other things, make certain restricted payments (as defined in the Senior Secured Credit Facilities), including dividend payments and share repurchases. See Note 6–Long-Term Debt to our unaudited condensed consolidated financial statements for further details concerning the calculation of the Total Leverage Ratio (as defined in the Senior Secured Credit Facilities). As of June 30, 2015, the Total Leverage Ratio as calculated under the Senior Secured Credit Facilities was 4.42 to 1.00, which results in a $120.0 million capacity for restricted payments in 2015. During the six months ended June 30, 2015, we have used approximately $54.5 million of our available restricted payments capacity. As a result, we currently have the ability to declare dividends or make certain other restricted payments in an aggregate amount of up to approximately $65.5 million for the remainder of calendar year 2015. The amount available for dividend declarations, share repurchases and certain other restricted payments under the covenant restrictions in the debt agreements adjusts at the beginning of each quarter as set forth in Note 6–Long-Term Debt to our unaudited condensed consolidated financial statements.

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We believe that the presentation of Adjusted EBITDA is appropriate to provide additional information to investors about the calculation of, and compliance with, certain financial covenants in the Senior Secured Credit Facilities. Adjusted EBITDA is a material component of these covenants. In addition, investors, lenders, financial analysts and rating agencies have historically used EBITDA related measures in our industry, along with other measures, to evaluate a company’s ability to meet its debt service requirements, to estimate the value of a company and to make informed investment decisions. We also use Adjusted EBITDA in connection with certain components of our executive compensation program. Adjusted EBITDA eliminates the effect of certain non-cash depreciation of tangible assets and amortization of intangible assets, along with the effects of interest rates and changes in capitalization which management believes may not necessarily be indicative of a company’s underlying operating performance.

Adjusted EBITDA is not a recognized term under accounting principles generally accepted in the United States of America (“GAAP”), and should not be considered in isolation or as a substitute for a measure of our liquidity or performance prepared in accordance with GAAP and is not indicative of income from operations as determined under GAAP. Adjusted EBITDA and other non-GAAP financial measures have limitations which should be considered before using these measures to evaluate our liquidity or financial performance. Adjusted EBITDA, as presented by us, may not be comparable to similarly titled measures of other companies due to varying methods of calculation.

The following table reconciles Adjusted EBITDA to net income (loss) for the periods indicated:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2015		2014		2015			2014
	(Unaudited, in thousands)
Net income (loss)	$	5,809	$	37,406	$	(37,789	)	$	(11,811	)
Provision for (benefit from) income taxes		3,652		22,700		(23,388	)		(7,212	)
Loss on early extinguishment of debt and write-off of discounts and debt issuance costs (a)		20,348		—		20,348			—
Interest expense		15,732		20,526		35,910			40,230
Depreciation and amortization		50,110		43,086		93,964			84,362
Secondary offering costs (b)		—		73		—			747
Equity-based compensation expense (c)		1,398		573		3,251			1,335
Other adjusting items (d)		—		1,522		—			2,278
Other non-cash expenses (e)		3,120		185		4,030			1,093
Adjusted EBITDA (f)	$	100,169	$	126,071	$	96,326		$	111,022

(a) Reflects a $14.3 million premium paid for the early redemption in April 2015 of $260.0 million of our Senior Notes, along with a write-off of approximately $6.0 million in related discounts and debt issuance costs.

(b) Reflects fees and expenses incurred in connection with the secondary offering of our common stock in April 2014. Pursuant to the Registration Rights Agreement, we paid all expenses related to the offering, other than underwriting discounts and commissions. No shares were sold by us in the secondary offering and the selling stockholders received all of the net proceeds from the offering.

(c) Reflects non-cash compensation expense associated with the grants of equity compensation.

(d) Reflects certain non-recurring product and intellectual property development costs incurred in the three and six months ended June 30, 2014. The Adjusted EBITDA covenant calculations presented in the table above do not reflect certain other adjusting items incurred in the three and six months ended June 30, 2015 as described in footnote (f) below.

(e) Reflects non-cash expenses related to miscellaneous asset write-offs and non-cash losses on derivatives.

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(f) For covenant calculation purposes under the Company’s credit agreement, the amount which the Company is able to add back to Adjusted EBITDA for restructuring and other related costs and certain other adjusting items, including product and intellectual property development costs, is limited to $10.0 million for any four consecutive quarters (with certain unused amounts carried over from the prior fiscal year). Due to these limitations, the Adjusted EBITDA covenant calculations presented in the table above do not reflect $0.1 million and $0.3 million related to restructuring and other related costs in the three and six months ended June 30, 2015, respectively, and $0.6 million and $1.2 million of product and intellectual property development costs incurred in the three and six months ended June 30, 2015, respectively.

Contractual Obligations

There have been no material changes to our contractual obligations from those previously disclosed in our Annual Report on Form 10-K other than the long-term debt and interest obligations due to our subsequent borrowings of Term B-3 Loans and redemption of our Senior Notes on April 7, 2015. As a result of these changes, our long-term debt obligations as of June 30, 2015, not including any possible prepayments are as follows for the less than one year, 1-3 year, and 3-5 year periods, respectively (in thousands): $16,850; $33,700; and $1,574,163. Our estimated future interest payments for our Senior Secured Credit Facilities based on interest rates in effect at June 30, 2015 are as follows for the less than one year, 1-3 year, and 3-5 year periods, respectively (in thousands): $55,272; $132,596; and $123,398. Interest obligations also include letter of credit and commitment fees for the used and unused portions of our Revolving Credit Facility. See Note 6-Long-Term Debt to our unaudited condensed consolidated financial statements therein for further discussion.

Critical Accounting Policies

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, revenues and expenses, and disclosure of contingencies during the reporting period. Significant estimates and assumptions include the valuation and useful lives of long-lived tangible and intangible assets, the valuation of goodwill and other indefinite-lived intangible assets, the accounting for income taxes, the accounting for self-insurance, revenue recognition and equity-based compensation. Actual results could differ from those estimates. The critical accounting estimates associated with these policies are described in our Annual Report on Form 10-K under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These critical accounting policies include property and equipment, impairment of long-lived assets, goodwill and other indefinite-lived intangible assets, accounting for income taxes, self-insurance reserves, and revenue recognition. There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K.

Off-Balance Sheet Arrangements

We had no off-balance sheet arrangements as of June 30, 2015.

Recently Issued Financial Accounting Standards

Refer to Note 2–Recently Issued Accounting Pronouncements, in our notes to the unaudited condensed consolidated financial statements for further details.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Inflation

The impact of inflation has affected, and will continue to affect, our operations significantly. Our costs of food, merchandise and other revenues are influenced by inflation and fluctuations in global commodity prices. In addition, costs for construction, repairs and maintenance are all subject to inflationary pressures.

Interest Rate Risk

We are exposed to market risks from fluctuations in interest rates, and to a lesser extent on currency exchange rates, from time to time, on imported rides and equipment. The objective of our financial risk management is to reduce the potential negative impact of interest rate and foreign currency exchange rate fluctuations to acceptable levels. We do not acquire market risk sensitive instruments for trading purposes.

We manage interest rate risk through the use of a combination of fixed-rate long-term debt and interest rate swaps that fix a portion of our variable-rate long-term debt.

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The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the next 12 months, our estimate is that an additional $3.3 million will be reclassified as an increase to interest expense.

After considering the impact of interest rate swap agreements, at June 30, 2015, approximately $1,250.0 million of our outstanding long-term debt represents fixed-rate debt and approximately $374.7 million represents variable-rate debt. Assuming an average balance on our revolving credit borrowings of approximately $40.0 million, a hypothetical 100 bps increase in 3 month LIBOR on our variable-rate debt would lead to an increase of approximately $2.4 million in annual cash interest costs due to the impact of our fixed-rate swap agreements.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Regulations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), require public companies, including us, to maintain “disclosure controls and procedures,” which are defined in Rule 13a-15(e) and Rule 15d-15(e) to mean a company’s controls and other procedures that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required or necessary disclosures. In designing and evaluating our disclosure controls and procedures, management recognizes that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. Our principal executive officer and principal financial officer have concluded, based on the evaluation of the effectiveness of the disclosure controls and procedures by our management as of the end of the fiscal quarter covered by this Quarterly Report, that our disclosure controls and procedures were effective to accomplish their objectives at a reasonable assurance level.

Changes in Internal Control over Financial Reporting

Regulations under the Exchange Act require public companies, including our Company, to evaluate any change in our “internal control over financial reporting” as such term is defined in Rule 13a-15(f) and Rule 15d-15(f) of the Exchange Act. There have been no changes in our internal control over financial reporting during the fiscal quarter covered by this Quarterly Report that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

Securities Class Action Lawsuit

On September 9, 2014, a purported stockholder class action lawsuit consisting of purchasers of the Company’s common stock during the periods between April 18, 2013 to August 13, 2014, captioned Baker v. SeaWorld Entertainment, Inc., et al., Case No. 14-CV-02129-MMA (KSC), was filed in the U.S. District Court 36 for the Southern District of California against the Company, the Chairman of our Board of Directors, certain of our executive officers and Blackstone. On February 27, 2015, Court-appointed Lead Plaintiffs, Pensionskassen For Børne- Og Ungdomspædagoger and Arkansas Public Employees Retirement System, together with additional plaintiffs, Oklahoma City Employee Retirement System and Pembroke Pines Firefighters and Police Officers Pension Fund (collectively, “Plaintiffs”), filed an amended complaint against the Company, the Chairman of the Company’s Board of Directors, certain of its executive officers, Blackstone, and underwriters of the initial public offering and secondary public offerings. The amended complaint alleges, among other things, that the prospectus and registration statements filed contained materially false and misleading information in violation of the federal securities laws and seeks unspecified compensatory damages and other relief. Plaintiffs contend that defendants knew or were reckless in not knowing that Blackfish was impacting SeaWorld’s business at the time of each public statement. On May 29, 2015, we and the other defendants filed a motion to dismiss the amended complaint. The plaintiffs filed an opposition to our motion to dismiss on July 31, 2015. Our reply is due on September 18, 2015. We believe that the class action lawsuit is without merit and we intend to defend the lawsuit vigorously; however, there can be no assurance regarding the ultimate outcome of this lawsuit.

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Shareholder Derivative Lawsuit

On December 8, 2014, a putative derivative lawsuit captioned Kistenmacher v. Atchison, et al., Civil Action No. 10437, was filed in the Court of Chancery of the State of Delaware against, among others, the Chairman of our Board of Directors, certain of our executive officers, directors and shareholders, and Blackstone. The Company is a “Nominal Defendant” in the lawsuit. On March 30, 2015, the plaintiff filed an amended complaint against the same set of defendants. The amended complaint alleges, among other things, that the defendants breached their fiduciary duties, aided and abetted breaches of fiduciary duties, violated Florida Blue Sky laws and were unjustly enriched by (i) including materially false and misleading information in the prospectus and registration statements; and (ii) causing the Company to repurchase certain shares of its common stock from certain shareholders at an alleged artificially inflated price. We do not maintain any direct exposure to loss in connection with this shareholder derivative lawsuit. The lawsuit does not assert any claims against us. Our status as a “Nominal Defendant” in the action reflects the fact that the lawsuit is maintained by the named plaintiff on behalf of the Company and that the plaintiff seeks damages on our behalf. On May 21, 2015, the defendants filed a motion to stay the lawsuit pending resolution of the Company’s securities class action lawsuit. Plaintiff has opposed defendants’ motion to stay, which is currently pending before the court. On June 29, 2015, the defendants filed a motion to dismiss the amended complaint.

Consumer Class Action Lawsuits

On March 25, 2015, a purported class action was filed in the United States District Court for the Southern District of California against the Company, captioned Holly Hall v. SeaWorld Entertainment, Inc., Case No. 3:15-cv-00600-CAB-RBB (the “Hall Matter”). The complaint identifies three putative classes consisting of all consumers nationwide who at any time during the four-year period preceding the filing of the original complaint, purchased an admission ticket, a membership or a SeaWorld “experience” that includes an “orca experience” from the SeaWorld amusement park in” San Diego, California, Orlando, Florida or San Antonio, Texas respectively. The complaint alleges causes of action under California Unfair Competition Law, California Consumers Legal Remedies Act, California False Advertising Law, California Deceit statute, Florida Unfair and Deceptive Trade Practices Act, Texas Deceptive Trade Practices Act, as well as claims for Unjust Enrichment. Plaintiffs’ claims are based on their allegations that the Company misrepresented the physical living conditions and care and treatment of its killer whales, resulting in confusion or misunderstanding among ticket purchasers, and omitted material facts regarding its killer whales with intent to deceive and mislead the plaintiff and purported class members. The complaint further alleges that the specific misrepresentations heard and relied upon by Holly Hall, the sole named plaintiff, in purchasing her SeaWorld tickets concerned the circumstances surrounding the death of a SeaWorld trainer. The complaint seeks actual damages, equitable relief, attorney’s fees and costs. Plaintiff claims that the amount in controversy exceeds $5.0 million, but the liability exposure is speculative until the size of the class is determined (if certification is granted at all). The case is in the preliminary stages and a response to the complaint has not yet been filed.

In addition, four other purported class actions were filed against us and our affiliates in the following federal courts on April 9, 2015, April 16, 2015, April 17, 2015 and May 7, 2015, respectively: (i) the United States District Court for the Middle District of Florida, captioned Joyce Kuhl v. SeaWorld LLC et al., 6:15-cv-00574-ACC-GJK, (ii) the United States District Court for the Southern District of California, captioned Jessica Gaab, et. al. v. SeaWorld Entertainment, Inc., Case No. 15:cv-842-CAB-RBB (the “Gaab Matter”) (iii) the United States District Court for the Western District of Texas, captioned Elaine Salazar Browne v. SeaWorld of Texas LLC et al., 5:15-cv-00301-XR and (iv) the United States District Court for the Southern District of California, captioned Valerie Simo et al. v. SeaWorld Entertainment, Inc., Case No. 15:cv-1022-CAB-RBB (the “Simo Matter”). These cases, in essence, reiterate the claims made and relief sought in the Hall Matter. On May 1, 2015, the cases in Florida and Texas were voluntarily dismissed without prejudice by the respective plaintiffs.

On April 13, 2015, a purported class action was filed in the Superior Court of the State of California for the City and County of San Francisco against SeaWorld Parks and Entertainment, Inc. captioned Marc Anderson, et. al., v. SeaWorld Parks and Entertainment, Inc., Case No. CGC-15-545292 (the “Anderson Matter”). The putative class consists of all consumers within California who, within the past four years, purchased tickets to SeaWorld San Diego. On May 11, 2015, the plaintiffs filed a First Amended Class Action Complaint (the “Amended Complaint”). The Amended Complaint alleges causes of action under the California False Advertising Law, California Unfair Competition Law and California Consumers Legal Remedies Act. Plaintiffs’ claims are based on their allegations that the Company misrepresented the physical living conditions and care and treatment of its killer whales, resulting in confusion or misunderstanding among ticket purchasers, and omitted material facts regarding its killer whales with intent to deceive and mislead the plaintiff and purported class members. The Amended Complaint seeks actual damages, equitable relief, attorneys’ fees and costs. Based on Plaintiff’s definition of the class, the amount in controversy exceeds $5.0 million, but the liability exposure is speculative until the size of the class is determined (if certification is granted at all). On May 14, 2015, we removed the case to the United States District Court for the Northern District of California, Case No. 15:cv-2172-SC. The case is in the preliminary stages and a response to the Amended Complaint has not yet been filed. On May 19, 2015, the plaintiffs filed a motion to remand. This motion is set for hearing on August 28, 2015.

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On May 14, 2015, we filed a motion before the Judicial Panel on Multidistrict Litigation to have the Hall, Gaab, Simo, and Anderson Matters centralized and transferred to the Middle District of Florida, Orlando Division. The hearing on our motion to transfer was held on July 30, 2015 and on August 5, 2015 the Judicial Panel denied our motion. We believe that these consumer class action lawsuits are without merit and we intend to defend these lawsuits vigorously; however, there can be no assurance regarding the ultimate outcome of these lawsuits.

Other Matters

From time to time, we are subject to various other allegations, claims and legal actions arising in the ordinary course of business. While it is impossible to determine with certainty the ultimate outcome of any of these proceedings, lawsuits and claims, management believes that adequate provisions have been made and insurance secured for all currently pending proceedings so that the ultimate outcomes will not have a material adverse effect on our financial position.

Item 1A. Risk Factors

There have been no material changes to the risk factors set forth in Item 1A. to Part I of our Annual Report on Form 10-K, as filed on February 27, 2015, except to the extent factual information disclosed elsewhere in this Quarterly Report on Form 10-Q relates to such risk factors.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The Company had no unregistered sales of equity securities during the second quarter of 2015. The following table sets forth information with respect to shares of our common stock purchased by the Company during the periods indicated:

Period Beginning	Period Ending	Total Number of Shares Purchased(1)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)		Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2)
April 1, 2015	April 30, 2015		41,262	$	20.00		—	$	235,000,000
May 1, 2015	May 31, 2015		243	$	21.61		—		235,000,000
June 1, 2015	June 30, 2015		37	$	21.39		—		235,000,000
			41,542	$	20.01		—	$	235,000,000

(1) All purchases were made pursuant to the Company’s Omnibus Incentive Plan, under which participants may satisfy tax withholding obligations incurred upon the vesting of restricted stock by requesting the Company to withhold shares with a value equal to the amount of the withholding obligation.

(2) There were no share repurchases under the Share Repurchase Program during the six months ended June 30, 2015.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

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Item 5. Other Information

Rule 10b5-1 Plans

Our policy governing transactions in our securities by our directors, officers and employees permits such persons to adopt stock trading plans pursuant to Rule 10b5-1 promulgated by the SEC under the Exchange Act. Our directors, officers and employees have in the past and may from time to time establish such stock trading plans. We do not undertake any obligation to disclose, or to update or revise any disclosure regarding, any such plans and specifically do not undertake to disclose the adoption, amendment, termination or expiration of any such plans.

Iran Threat Reduction and Syria Human Rights Act of 2012

Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) of the Exchange Act, the Company hereby incorporates by reference herein Exhibit 99.1 of this report, which includes disclosures publicly filed and/or provided to Blackstone, an affiliate of our major stockholders, by Travelport Worldwide Limited which may be considered the Company’s affiliate.

Item 6. Exhibits

See Exhibit Index immediately following signature page hereto, which is incorporated herein by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SEAWORLD ENTERTAINMENT, INC.
	(Registrant)
Date: August 7, 2015	By:	/s/ Marc G. Swanson
		Marc G. Swanson
		Chief Accounting Officer and Interim Chief Financial Officer
		(Principal Financial Officer)

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EXHIBIT INDEX

The following is a list of all exhibits filed or furnished as part of this report:

Exhibit No.	Description
10.1	Joinder Agreement, dated as of May 6, 2015, among SWBG Orlando Corporate Operations Group, LLC, SEA Holdings I, LLC and Bank of America, N.A., as administrative agent and collateral agent, to the Credit Agreement, dated as of December 1, 2009 (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015) (No. 001-35883)
10.2	Supplement No. 2, dated as of May 6, 2015, among SWBG Orlando Corporate Operations Group, LLC, SEA Holdings I, LLC and Bank of America, N.A., as collateral agent, to the Security Agreement, dated as of December 1, 2009 (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015) (No. 001-35883)
10.3†	Restricted Stock Grant Notice and Restricted Stock Agreement (Employees – Time-Based Shares), dated April 7, 2015, between SeaWorld Entertainment, Inc. and Joel Manby (incorporated by reference to Exhibit 10.12 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015) (No. 001-35883)
10. 4†	Option Grant Notice and Option Agreement (Employees – Time-Based Options), dated April 7, 2015, between SeaWorld Entertainment, Inc. and Joel Manby (incorporated by reference to Exhibit 10.13 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015) (No. 001-35883)
31.1*	Certification of Periodic Report by Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Periodic Report by Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.1*	Section 13(r) Disclosure
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

† Identifies exhibits that consist of a management contract or compensatory plan or arrangement.

* Filed herewith.

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

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EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Joel K. Manby, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015 of SeaWorld Entertainment, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2015	Signature:	/s/ Joel K. Manby
		Joel K. Manby
		President and Chief Executive Officer, Director
		(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PERIODIC REPORT UNDER SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Marc G. Swanson, certify that:

1. I have reviewed this Quarterly Report on form 10-Q for the quarterly period ended June 30, 2015 of SeaWorld Entertainment, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2015	Signature:	/s/ Marc G. Swanson
		Marc G. Swanson
		Chief Accounting Officer and Interim Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of SeaWorld Entertainment, Inc. (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2015 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Joel K. Manby, President and Chief Executive Officer of the Company, do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

• The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

• The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein.

Date: August 7, 2015

/s/ Joel K. Manby

Joel K. Manby

President and Chief Executive Officer, Director

(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of SeaWorld Entertainment, Inc. (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2015 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Marc G. Swanson, Chief Accounting Officer and Interim Chief Financial Officer of the Company, do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

• The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

• The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein.

Date: August 7, 2015

/s/ Marc G. Swanson

Marc G. Swanson

Chief Accounting Officer and Interim Chief Financial Officer

(Principal Financial Officer)

EX-99.1

Exhibit 99.1

Section 13(r) Disclosure

The disclosure with respect to the fiscal quarter ended June 30, 2015 reproduced below was included in Travelport Worldwide Limited’s (“Travelport Worldwide”) Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission in accordance with Section 13(r) of the Securities Exchange Act of 1934, as amended. Travelport Worldwide may be considered an affiliate of The Blackstone Group L.P., and, therefore, an affiliate of SeaWorld Entertainment Inc. SeaWorld Entertainment, Inc. did not independently verify or participate in the preparation of these disclosures.

Travelport Worldwide included the following disclosure in its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015:

Trade Sanctions Disclosure

The following activities are disclosed as required by Section 13(r)(1)(D)(iii) of the Exchange Act.

As part of our global business in the travel industry, we provide certain passenger travel related Travel Commerce Platform and Technology Services to Iran Air. We also provide certain Technology Services to Iran Air Tours. All of these services are either exempt from applicable sanctions prohibitions pursuant to a statutory exemption permitting transactions ordinarily incident to travel or, to the extent not otherwise exempt, specifically licensed by the U.S. Office of Foreign Assets Control. Subject to any changes in the exempt/licensed status of such activities, we intend to continue these business activities, which are directly related to and promote the arrangement of travel for individuals.

The gross revenue and net profit attributable to these activities in the quarter ended June 30, 2015 were approximately $145,000 and $104,000, respectively.

XML

Long-Term Debt - Summary of Long-Term Debt Repayable (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Maturities of Long-term Debt [Abstract]
2015	$ 8,425
2016	16,850
2017	16,850
2018	16,850
2019	16,850
Thereafter	1,548,888
Long-term debt	$ 1,624,713	$ 1,612,438

XML

Stockholders' Equity - Additional Information (Detail) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 01, 2015	Apr. 30, 2014	Dec. 31, 2014	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Aug. 12, 2014
Stockholders Equity [Line Items]
Common stock, shares issued			90,191,100		90,303,587
Unvested shares of common stock					4,009,725
Number of shares repurchased			4,105,970		4,105,970
Dividends declared to common stockholders					$ 54,482,000
Dividends payable			$ 172,000		$ 18,391,000
Secondary offering costs				$ 73,000		$ 747,000
Share Repurchase Program, authorized amount							$ 250,000,000
Shares repurchased			855,970
Stock repurchased during period under Share Repurchase Program, average price per share			$ 17.50
Share Repurchase Program, remaining authorized repurchase amount			$ 235,000,000		$ 235,000,000
Stock repurchased during period, total cost			15,000,000
Shares repurchased payment settlement during period					5,650,000	$ 50,706,000
Treasury stock at cost			$ 109,871,000		$ 109,871,000
Subsequent Event [Member]
Stockholders Equity [Line Items]
Dividends paid	$ 18,100,000
2.25x Performance Restricted Shares [Member]
Stockholders Equity [Line Items]
Unvested shares of common stock			1,451,453		1,373,662
Dividends payable on unvested restricted performance shares not probable of vesting					$ 2,540,000
2.75x Performance Restricted Shares [Member]
Stockholders Equity [Line Items]
Unvested shares of common stock			1,451,453		1,373,662
Dividends payable on unvested restricted performance shares not probable of vesting					$ 2,540,000
Bonus Performance Restricted Shares [Member]
Stockholders Equity [Line Items]
Unvested shares of common stock					433,463
Dividends payable on unvested restricted performance shares not probable of vesting					$ 177,000
Long-Term Incentive Performance Restricted Shares [Member]
Stockholders Equity [Line Items]
Unvested shares of common stock					67,487
Dividends payable on unvested restricted performance shares not probable of vesting					$ 28,000
Dividends on shares probable of vesting					9,000
Secondary Offering [Member]
Stockholders Equity [Line Items]
Common stock, shares issued		0
Number of shares repurchased		1,750,000
Shares offered and sold by the selling stockholders		17,250,000
Treasury stock at cost			$ 109,871,000		$ 109,871,000

XML

Related-Party Transactions - Additional Information (Detail) - USD ($)							3 Months Ended		6 Months Ended
	Jul. 01, 2015	Jun. 10, 2015	Apr. 01, 2015	Mar. 03, 2015	Jan. 22, 2015	Jan. 05, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Apr. 07, 2015	Dec. 31, 2014	Dec. 01, 2009
Related Party Transaction [Line Items]
Cash dividends declared per share		$ 0.21		$ 0.21		$ 0.21	$ 0.21	$ 0.21	$ 0.63	$ 0.41
Dividends paid to stockholders									$ 36,262,000	$ 35,407,000
Cash dividends record date		Jun. 22, 2015		Mar. 13, 2015		Jan. 13, 2015
Cash dividends paid date		Jul. 01, 2015		Apr. 01, 2015		Jan. 22, 2015
Term B-2 Loans [Member]
Related Party Transaction [Line Items]
Debt instrument, balance													$ 1,405,000,000
Term B-3 Loans [Member]
Related Party Transaction [Line Items]
Debt instrument, balance											$ 280,000,000
Senior Notes [Member]
Related Party Transaction [Line Items]
Debt instrument, balance													$ 400,000,000
Blackstone and Affiliates [Member]
Related Party Transaction [Line Items]
Dividends paid to stockholders			$ 4,095,000		$ 4,095,000
Blackstone and Affiliates [Member] | Term B-2 Loans [Member]
Related Party Transaction [Line Items]
Debt instrument, balance							$ 81,000,000		81,000,000			$ 87,000,000
Blackstone and Affiliates [Member] | Term B-3 Loans [Member]
Related Party Transaction [Line Items]
Debt instrument, balance							$ 23,000,000		$ 23,000,000
Blackstone and Affiliates [Member] | Senior Notes [Member]
Related Party Transaction [Line Items]
Debt instrument, balance												$ 65,000,000
Blackstone and Affiliates [Member] | Subsequent Event [Member]
Related Party Transaction [Line Items]
Dividends paid to stockholders	$ 4,095,000

XML

Stockholders' Equity - Schedule of Quarterly Cash Dividends to Common Stockholders (Detail) - $ / shares				1 Months Ended			3 Months Ended		6 Months Ended
	Jun. 10, 2015	Mar. 03, 2015	Jan. 05, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stockholders Equity [Line Items]
Dividend record date	Jun. 22, 2015	Mar. 13, 2015	Jan. 13, 2015
Dividend payable date	Jul. 01, 2015	Apr. 01, 2015	Jan. 22, 2015
Cash dividends declared per share	$ 0.21	$ 0.21	$ 0.21				$ 0.21	$ 0.21	$ 0.63	$ 0.41
Q4 2014 Declaration [Member]
Stockholders Equity [Line Items]
Dividend record date									Jan. 13, 2015
Dividend payable date									Jan. 22, 2015
Cash dividends declared per share						$ 0.21
Q1 2015 Declaration [Member]
Stockholders Equity [Line Items]
Dividend record date									Mar. 13, 2015
Dividend payable date									Apr. 01, 2015
Cash dividends declared per share					$ 0.21
Q2 2015 Declaration [Member]
Stockholders Equity [Line Items]
Dividend record date									Jun. 22, 2015
Dividend payable date									Jul. 01, 2015
Cash dividends declared per share				$ 0.21

XML

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Liabilities:
Derivative financial instruments	$ 8,384	$ 628
Long-term obligations	1,624,713	1,615,635
Significant Other Observable Inputs (Level 2) [Member]
Liabilities:
Derivative financial instruments	8,384	628
Long-term obligations	$ 1,624,713	1,352,438
Significant Unobservable Inputs (Level 3) [Member]
Liabilities:
Long-term obligations		$ 263,197

XML

Earnings (Loss) per Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Potentially dilutive shares excluded from the calculation of diluted loss per share	1,933,000	17,000	1,583,000	324,000

XML

Restructuring Program - Schedule of Restructuring Program Activity (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands	Total	Total
Restructuring Cost and Reserve [Line Items]
Restructuring and other related costs	$ 122	$ 267
Severance and Other Employment Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other related costs, Liability, Beginning balance		7,691
Restructuring and other related costs		267
Restructuring and other related costs, Payments made		$ (7,958)

XML

Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Company's Derivative Financial Instruments Classification on Unaudited Condensed Consolidated Balance Sheets

Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014:

	As of June 30, 2015			As of December 31, 2014
	Liability Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate swaps	Other liabilities	$	2,516	Other liabilities	$	628
Forward interest rate swaps	Other liabilities		5,868			—
Total derivatives designated as hedging instruments		$	8,384		$	628

Schedule of Pre-tax Effect of Derivative Financial Instruments on Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)

Tabular Disclosure of the Effect of Derivative Instruments on the Statements of Comprehensive Income (Loss)

The table below presents the pre-tax effect of the Company’s derivative financial instruments on the unaudited condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014:

	Three Months Ended June 30						Six Months Ended June 30
	2015			2014			2015			2014
Derivatives in Cash Flow Hedging Relationships:
Loss related to effective portion of derivatives recognized in accumulated other comprehensive loss	$	(6,832	)	$	(2,147	)	$	(8,981	)	$	(2,873	)
Gain related to effective portion of derivatives reclassified from accumulated other comprehensive loss to interest expense	$	739		$	738		$	1,469		$	1,133
Loss related to ineffective portion of derivatives recognized in other expense (income), net	$	(1	)	$	—		$	(287	)	$	—

Schedule of Changes in Accumulated Other Comprehensive Loss

Changes in Accumulated Other Comprehensive Loss

The following table reflects the changes in accumulated other comprehensive loss for the six months ended June 30, 2015, net of tax:

Accumulated other comprehensive loss:	(Losses) Gains on Cash Flow Hedges
Balance at December 31, 2014	$	(483	)
Other comprehensive loss before reclassifications		(5,523	)
Amounts reclassified from accumulated other comprehensive loss to interest expense		903
Unrealized loss on derivatives, net of tax		(4,620	)
Balance at June 30, 2015	$	(5,103	)

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Equity-Based Compensation - Additional Information (Detail) - USD ($)				3 Months Ended		6 Months Ended
	Apr. 07, 2015	Mar. 03, 2015	Jan. 15, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total equity compensation expense						$ 3,251,000	$ 1,335,000
Bonus Performance Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares						447,627
Weighted average grant date fair value						$ 19.02
Long-Term Incentive Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						4 years
Vesting percentage						25.00%
Long-Term Incentive Options, expiration period						10 years
Options, granted						1,992,594
Long-Term Incentive Performance Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares						75,832
Weighted average grant date fair value						$ 18.96
2.25x Performance Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity compensation cost				$ 29,000,000		$ 29,000,000
Recognized equity compensation expense				$ 0	$ 0
Annualized effective compounded return rate						20.00%
Return on investment				2.25%		2.25%
Additional future funds to receive						$ 7,000,000
2.75x Performance Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity compensation cost				$ 17,000,000		17,000,000
Recognized equity compensation expense						$ 0	0
Annualized effective compounded return rate						15.00%
Return on investment				2.75%		2.75%
Additional future funds to receive						$ 435,000,000
Time-Vesting Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares						667,441
Weighted average grant date fair value						$ 19.06
Time-Vesting Restricted Shares [Member] | Interim Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares			100,000
Weighted average grant date fair value			$ 16.50
Vesting period, description						The earlier of the start date of a new Chief Executive Officer or June 30, 2015
Time-Vesting Restricted Shares [Member] | Board Members [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						3 years
Granted shares						49,284
Omnibus Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance				15,000,000		15,000,000
Shares available for future issuance				11,359,427		11,359,427
Total equity compensation expense				$ 1,398,000	$ 573,000	$ 3,251,000	$ 1,335,000
Unrecognized equity compensation cost				19,400,000		$ 19,400,000
2015 Bonus Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of bonus payable by cash						50.00%
2015 Bonus Plan [Member] | Bonus Performance Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity compensation cost				8,200,000		$ 8,200,000
Percentage of bonus payable by shares						50.00%
Recognized equity compensation expense						$ 0
2015 Long-Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares earned, percentage						33.00%
2015 Long-Term Incentive Plan [Member] | Long-Term Incentive Time Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						4 years
Vesting percentage						25.00%
2015 Long-Term Incentive Plan [Member] | Long-Term Incentive Performance Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period, beginning date						Jan. 01, 2015
Performance period, ending date						Dec. 31, 2017
Performance period						3 years
Awarded shares						202,491
Weighted average grant date fair value		$ 18.96
Number of shares probable of vesting related to the first performance period						21,597
2015 Long-Term Incentive Plan [Member] | Long-Term Incentive Performance Restricted Shares [Member] | Target Performance [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity compensation cost				365,000		$ 365,000
2015 Long-Term Incentive Plan [Member] | Long-Term Incentive Performance Restricted Shares [Member] | First Performance Level [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares		67,487
2015 Long-Term Incentive Plan [Member] | Long-Term Incentive Performance Restricted Shares [Member] | Maximum Performance [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized equity compensation cost				$ 870,000		$ 870,000
2015 Long-Term Incentive Plan Below Threshold Performance [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage						0.00%
2015 Long-Term Incentive Plan Threshold Performance [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage						50.00%
2015 Long-Term Incentive Plan Target Performance [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage						100.00%
2015 Long-Term Incentive Plan At or Above Maximum Performance [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage						200.00%
Other 2015 Grants [Member] | Bonus Performance Restricted Shares [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares	27,623
Other 2015 Grants [Member] | Time-Vesting Restricted Shares [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Granted shares	249,875
Other 2015 Grants [Member] | Nonqualified Stock Options [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Options, granted	1,089,324

XML

Derivative Instruments and Hedging Activities - Fair Value of Company's Derivative Financial Instruments Classification on Unaudited Condensed Consolidated Balance Sheet (Detail) - Other Liabilities [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Liability Derivatives Fair Value	$ 8,384	$ 628
Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
Liability Derivatives Fair Value	2,516	$ 628
Forward Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
Liability Derivatives Fair Value	$ 5,868

XML

Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail)	Jun. 30, 2015	Dec. 31, 2014
Term B-2 Loans [Member]
Debt Instrument [Line Items]
Debt instrument interest rate effective percentage	3.26%	3.26%
Term B-3 Loans [Member]
Debt Instrument [Line Items]
Debt instrument interest rate effective percentage	4.33%
Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument interest rate effective percentage		12.07%

XML

Equity-Based Compensation - Schedule of Activity Related to Stock Option Awards (Detail) - Jun. 30, 2015 - Long-Term Incentive Options [Member] - USD ($) $ / shares in Units, $ in Thousands	Total
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, granted	1,992,594
Options, Exercised	0
Options, Forfeited	(58,166)
Options, Outstanding, Ending Balance	1,934,428
Options, Exercisable at June 30, 2015	0
Weighted Average Exercise Price, Granted	$ 19.53
Weighted Average Exercise Price, Exercised	0
Weighted Average Exercise Price, Forfeited	18.96
Weighted Average Exercise Price, Outstanding, Ending Balance	19.55
Weighted Average Exercise Price, Exercisable at June 30, 2015	$ 0
Weighted Average Remaining Contractual Life, Outstanding at June 30, 2015	9 years 8 months 12 days
Aggregate Intrinsic Value, Outstanding at June 30, 2015	$ 8,710
Aggregate Intrinsic Value, Exercisable at June 30, 2015	$ 0

XML

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Parenthetical) (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	$ 8,384	$ 628
Current maturities on long-term debt	16,850	14,050
Long-term debt	1,584,365	1,569,400
Other Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	$ 8,384	$ 628

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Recently Issued Accounting Pronouncements

6 Months Ended

Jun. 30, 2015

Accounting Changes and Error Corrections [Abstract]

Recently Issued Accounting Pronouncements

2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

The Company reviews new accounting pronouncements as they are issued or proposed by the Financial Accounting Standards Board (“FASB”).

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. This ASU simplifies the accounting for inventory by requiring inventory to be measured at the “lower of cost and net realizable value” and eliminates options that currently exist for measuring inventory at “market value”. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. The ASU is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. The Company does not expect a material impact to its consolidated financial statements upon adoption of this ASU.

In June 2015, the Company elected to early adopt ASU No. 2015-03, Interest – Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs. This ASU simplifies the accounting for debt issuance costs by requiring such costs to be presented as a direct deduction from the related debt liability rather than as an asset. Debt disclosures include the face amount of the debt liability and the effective interest rate. The ASU has been applied retrospectively as a change in accounting principle for all periods presented in the accompanying unaudited condensed consolidated balance sheets. As a result of adopting this ASU, the Company reclassified $20,003 of unamortized debt issuance costs at December 31, 2014, from other assets to long-term debt on the accompanying unaudited condensed consolidated balance sheet. The adoption of this ASU did not impact the Company’s consolidated results of operations, stockholders’ equity or cash flows. See Note 6–Long-Term Debt for further details.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB approved a proposed ASU to defer the effective date to annual reporting periods beginning after December 15, 2017 using one of two retrospective application methods with earlier adoption permitted for annual periods beginning after December 15, 2016. The Company is evaluating the accounting and disclosure requirements on its consolidated financial statements but does not currently anticipate a material impact to the consolidated financial statements upon adoption; however, the Company is in the process of evaluating the effect this ASU will have on the classification of revenue and related disclosures.

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Derivative Instruments and Hedging Activities - Schedule of Pre-tax Effect of Derivative Financial Instruments on Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivatives in Cash Flow Hedging Relationships:
Loss related to effective portion of derivatives recognized in accumulated other comprehensive loss	$ (6,832,000)	$ (2,147,000)	$ (8,981,000)	$ (2,873,000)
Gain related to effective portion of derivatives reclassified from accumulated other comprehensive loss to interest expense	739,000	738,000	1,469,000	1,133,000
Loss related to ineffective portion of derivatives recognized in other expense (income), net	$ (1,000)	$ 0	$ (287,000)	$ 0

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Restructuring Program (Tables)

6 Months Ended

Jun. 30, 2015

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Program Activity

The Restructuring Program activity for the six months ended June 30, 2015 was as follows:

	Severance and Other Employment Expenses
Liability as of December 31, 2014	$	7,691
Costs incurred		267
Payments made		(7,958	)
Liability as of June 30, 2015	$	—

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Schedule of Quarterly Cash Dividends to Common Stockholders

In the six months ended June 30, 2015, the Board declared or paid quarterly cash dividends to all common stockholders of record as follows:

Record Date	Payment Date	Cash Dividend per Common Share
January 13, 2015	January 22, 2015	$	0.21
March 13, 2015	April 1, 2015	$	0.21
June 22, 2015	July 1, 2015	$	0.21

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Restructuring Program - Additional Information (Detail)	1 Months Ended	3 Months Ended	6 Months Ended
	Dec. 31, 2014 Position	Jun. 30, 2015 USD ($) Business	Jun. 30, 2015 USD ($) Business
Restructuring and Related Activities [Abstract]
Restructuring costs, description			Involved the elimination of approximately 300 positions across the Company's eleven theme parks and corporate headquarters.
Number of positions eliminated | Position	300
Number of theme parks | Business		11	11
Restructuring and other related costs		$ 122,000	$ 267,000
Restructuring and other related costs incurred to date		11,834,000	11,834,000
Expected additional costs associated to Restructuring Plan		$ 0	$ 0

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Derivative Instruments and Hedging Activities - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated other comprehensive loss:
Balance at December 31, 2014			$ (483)
Unrealized loss on derivatives, net of tax	$ (3,747)	$ (872)	(4,620)	$ (1,080)
Balance at June 30, 2015	(5,103)		(5,103)
(Losses) Gains on Cash Flow Hedges [Member]
Accumulated other comprehensive loss:
Balance at December 31, 2014			(483)
Other comprehensive loss before reclassifications			(5,523)
Amounts reclassified from accumulated other comprehensive loss to interest expense			903
Unrealized loss on derivatives, net of tax			(4,620)
Balance at June 30, 2015	$ (5,103)		$ (5,103)

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Description of the Business and Basis of Presentation - Additional Information (Detail) - Jun. 30, 2015	Partnership Business Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of limited partnerships which owned the Company | Partnership	10
Number of theme parks owned and operated	11
Number of theme parks opened for a portion of the year	6
Number of reportable segment | Segment	1

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Recently Issued Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Debt issuance costs	$ 15,285	$ 20,003

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Description of the Business and Basis of Presentation

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Description of the Business and Basis of Presentation

1. DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION

Description of the Business

SeaWorld Entertainment, Inc., through its wholly-owned subsidiary, SeaWorld Parks & Entertainment, Inc. (“SEA”) (collectively, the “Company”), owns and operates eleven theme parks within the United States. Prior to December 1, 2009, the Company did not have any operations. Prior to its initial public offering in April 2013, the Company was owned by ten limited partnerships (the “Partnerships” or the “selling stockholders”), ultimately owned by affiliates of The Blackstone Group L.P. (“Blackstone”) and certain co-investors.

The Company operates SeaWorld theme parks in Orlando, Florida; San Antonio, Texas; and San Diego, California, and Busch Gardens theme parks in Tampa, Florida, and Williamsburg, Virginia. The Company operates water park attractions in Orlando, Florida (Aquatica); San Diego, California (Aquatica); Tampa, Florida (Adventure Island); and Williamsburg, Virginia (Water Country USA). The Company also operates a reservations-only attraction offering interaction with marine animals (Discovery Cove) and a seasonal park in Langhorne, Pennsylvania (Sesame Place).

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC. The unaudited condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K.

In the opinion of management, such unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations for the year ending December 31, 2015 or any future period due to the seasonal nature of the Company’s operations. Based upon historical results, the Company typically generates its highest revenues in the second and third quarters of each year and incurs a net loss in the first and fourth quarters, in part because six of its theme parks are only open for a portion of the year.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including SEA. All intercompany accounts have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions include, but are not limited to, the accounting for self-insurance, deferred tax assets, deferred revenue, equity compensation and the valuation of goodwill and other indefinite-lived intangible assets. Actual results could differ from those estimates.

Segment Reporting

The Company maintains discrete financial information for each of its eleven theme parks, which is used by the Chief Operating Decision Maker (“CODM”), identified as the Chief Executive Officer, as a basis for allocating resources. Each theme park has been identified as an operating segment and meets the criteria for aggregation due to similar economic characteristics. In addition, all of the theme parks provide similar products and services and share similar processes for delivering services. The theme parks have a high degree of similarity in the workforces and target similar consumer groups. Accordingly, based on these economic and operational similarities and the way the CODM monitors the operations, the Company has concluded that its operating segments may be aggregated and that it has one reportable segment.

Reclassifications

Certain prior year amounts have been reclassified to conform to the 2015 presentation, in particular debt issuance costs, which were previously included in other assets, have been reclassified to long-term debt as a result of the adoption of a new Accounting Standards Update (“ASU”). See Note 2–Recently Issued Accounting Pronouncement for further details.

Revision of Previously Issued Financial Statements

In the third quarter of 2014, the Company conducted an internal review of its application of the guidance in Accounting Standards Codification (“ASC”) 470-50, Debt-Modifications and Extinguishments, to its accounting for certain debt transactions in 2013, 2012 and 2011. As a result of this review and analysis, the Company determined that it had incorrectly applied the accounting guidance in ASC 470-50 and inappropriately accounted for certain fees as a result of modifications and prepayments in certain years. In accordance with ASC 250 (SEC Staff Accounting Bulletin 99, Assessing Materiality), the Company concluded that the correction of the errors was not material to any of its previously issued annual or interim financial statements. The Company has revised its previously issued financial statements contained in this Quarterly Report on Form 10-Q to correct the effect of these immaterial errors for the corresponding periods. See Note 6–Long-Term Debt for the impact of revisions on previously issued periods contained within this Quarterly Report on Form 10-Q.

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Earnings (Loss) per Share - Schedule of Earnings (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Basic earnings (loss) per share, Net Income (Loss)	$ 5,809	$ 37,406	$ (37,789)	$ (11,811)
Diluted earnings (loss) per share, Net Income (Loss)	$ 5,809	$ 37,406	$ (37,789)	$ (11,811)
Basic earnings (loss) per share, Shares	86,186	86,877	86,142	87,642
Effect of dilutive incentive-based awards, Shares	105	312
Diluted earnings (loss) per share, Shares	86,291	87,189	86,142	87,642
Basic earnings (loss) per share, Per Share Amount	$ 0.07	$ 0.43	$ (0.44)	$ (0.13)
Diluted earnings (loss) per share, Per Share Amount	$ 0.07	$ 0.43	$ (0.44)	$ (0.13)

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Long-Term Debt - Schedule of Impact of Corrections on Affected Financial Statements (Previously Issued Quarterly Periods) (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Selected Statements of Comprehensive Income (Loss) Data:
Interest expense	$ 15,732	$ 20,526	$ 35,910	$ 40,230
Income (loss) before income taxes	9,461	60,106	(61,177)	(19,023)
Provision for (benefit from) income taxes	3,652	22,700	(23,388)	(7,212)
Net income (loss)	$ 5,809	$ 37,406	$ (37,789)	$ (11,811)
Net income (loss) per share:
Net income (loss) per share, basic	$ 0.07	$ 0.43	$ (0.44)	$ (0.13)
Net income (loss) per share, diluted	$ 0.07	$ 0.43	$ (0.44)	$ (0.13)
As Previously Reported [Member]
Selected Statements of Comprehensive Income (Loss) Data:
Interest expense		$ 20,638		$ 40,684
Income (loss) before income taxes		59,994		(19,477)
Provision for (benefit from) income taxes		22,658		(7,382)
Net income (loss)		$ 37,336		$ (12,095)
Net income (loss) per share:
Net income (loss) per share, basic		$ 0.43		$ (0.14)
Net income (loss) per share, diluted		$ 0.43		$ (0.14)
Adjustments [Member]
Selected Statements of Comprehensive Income (Loss) Data:
Interest expense		$ (112)		$ (454)
Income (loss) before income taxes		112		454
Provision for (benefit from) income taxes		42		170
Net income (loss)		70		$ 284
Net income (loss) per share:
Net income (loss) per share, basic				$ (0.01)
Net income (loss) per share, diluted				$ (0.01)
As Revised [Member]
Selected Statements of Comprehensive Income (Loss) Data:
Interest expense		20,526		$ 40,230
Income (loss) before income taxes		60,106		(19,023)
Provision for (benefit from) income taxes		22,700		(7,212)
Net income (loss)		$ 37,406		$ (11,811)
Net income (loss) per share:
Net income (loss) per share, basic		$ 0.43		$ (0.13)
Net income (loss) per share, diluted		$ 0.43		$ (0.13)

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Equity-Based Compensation - Schedule of Key Weighted-average Assumptions Utilized in Black-Scholes Option Pricing Model for Stock Options Granted (Detail) - 6 months ended Jun. 30, 2015 - $ / shares	Total
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Grant date fair value	$ 4.50
Risk-free interest rate	1.63%
Expected volatility	36.67%
Expected dividend yield	4.28%
Expected life (in years)	6 years 3 months

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 52,931	$ 43,906
Accounts receivable, net	56,094	37,002
Inventories	38,749	33,134
Prepaid expenses and other current assets	20,562	20,894
Deferred tax assets, net	7,268	7,268
Total current assets	175,604	142,204
Property and equipment, at cost	2,678,128	2,612,052
Accumulated depreciation	(953,082)	(867,421)
Property and equipment, net	1,725,046	1,744,631
Goodwill	335,610	335,610
Trade names/trademarks, net	163,457	164,188
Other intangible assets, net	22,866	24,525
Other assets	13,220	11,313
Total assets	2,435,803	2,422,471
Current liabilities:
Accounts payable	108,313	88,279
Current maturities on long-term debt	16,850	14,050
Accrued salaries, wages and benefits	23,678	19,068
Deferred revenue	146,458	79,367
Dividends payable	18,391	172
Other accrued expenses	16,883	20,149
Total current liabilities	330,573	221,085
Long-term debt (net of debt issuance costs of $15,285 as of June 30, 2015 and $20,003 as of December 31, 2014)	1,584,365	1,569,400
Deferred tax liabilities, net	4,600	31,760
Other liabilities	31,206	20,691
Total liabilities	$ 1,950,744	$ 1,842,936
Commitments and contingencies (Note 10)
Stockholders' Equity:
Preferred stock, $0.01 par value-authorized, 100,000,000 shares, no shares issued or outstanding at June 30, 2015 and December 31, 2014
Common stock, $0.01 par value-authorized, 1,000,000,000 shares; 90,303,587 and 90,191,100 shares issued at June 30, 2015 and December 31, 2014, respectively	$ 903	$ 902
Additional paid-in capital	621,497	655,471
Accumulated other comprehensive loss	(5,103)	(483)
(Accumulated deficit) retained earnings	(22,367)	33,516
Treasury stock, at cost (4,105,970 shares at June 30, 2015 and December 31, 2014)	(109,871)	(109,871)
Total stockholders' equity	485,059	579,535
Total liabilities and stockholders' equity	$ 2,435,803	$ 2,422,471

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Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Assets measured at fair value	$ 0	$ 0	$ 0
Transfers between Levels	$ 0	$ 0	$ 0
Significant Unobservable Inputs (Level 3) [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Discount rate of Senior Notes			11.37%
Senior Notes, redemption date		Apr. 07, 2015

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Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015
Unrealized loss on derivatives, tax benefit	$ 2,892
Cash dividends declared per share	$ 0.63
Accumulated Other Comprehensive Loss [Member]
Unrealized loss on derivatives, tax benefit	$ 2,892

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Other Accrued Expenses - Schedule of Other Accrued Expenses (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Accrued property taxes	$ 7,339	$ 2,039
Accrued interest	464	2,604
Self-insurance reserve	7,078	7,800
Other	2,002	7,706
Total other accrued expenses	$ 16,883	$ 20,149

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Earnings (Loss) per Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) per Share

Earnings (loss) per share is computed as follows:

	Three Months Ended June 30,												Six Months Ended June 30,
	2015						2014						2015								2014
	Net Income		Shares		Per Share Amount		Net Income		Shares		Per Share Amount		Net Loss			Shares		Per Share Amount			Net Loss			Shares		Per Share Amount
Basic earnings (loss) per share	$	5,809		86,186	$	0.07	$	37,406		86,877	$	0.43	$	(37,789	)		86,142	$	(0.44	)	$	(11,811	)		87,642	$	(0.13	)
Effect of dilutive incentive-based awards				105						312							—								—
Diluted earnings (loss) per share	$	5,809		86,291	$	0.07	$	37,406		87,189	$	0.43	$	(37,789	)		86,142	$	(0.44	)	$	(11,811	)		87,642	$	(0.13	)

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Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 1,624,713	$ 1,612,438
Long-term debt	1,624,713	1,612,438
Less discounts	(8,213)	(8,985)
Less debt issuance costs	(15,285)	(20,003)
Less current maturities	(16,850)	(14,050)
Total long-term debt, net	1,584,365	1,569,400
Term B-2 Loans [Member]
Debt Instrument [Line Items]
Long-term debt	1,345,413	1,352,438
Long-term debt	1,345,413	1,352,438
Term B-3 Loans [Member]
Debt Instrument [Line Items]
Long-term debt	279,300
Long-term debt	279,300
Less discounts	$ (1,400)
Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt		260,000
Long-term debt		$ 260,000

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Summary of Long-Term Debt

Long-term debt as of June 30, 2015 and December 31, 2014 consisted of the following:

	June 30,			December 31,
	2015			2014
Term B-2 Loans (effective interest rate of 3.26% at June 30, 2015 and December 31, 2014)	$	1,345,413		$	1,352,438
Term B-3 Loans (effective interest rate of 4.33% at June 30, 2015)		279,300			—
Revolving Credit Facility		—			—
Senior Notes (effective interest rate of 12.07% at December 31, 2014)		—			260,000
Total long-term debt		1,624,713			1,612,438
Less discounts		(8,213	)		(8,985	)
Less debt issuance costs		(15,285	)		(20,003	)
Less current maturities		(16,850	)		(14,050	)
Total long-term debt, net	$	1,584,365		$	1,569,400

Summary of Long-Term Debt Repayable

Long-term debt at June 30, 2015, is repayable as follows:

Years Ending December 31,
2015	$	8,425
2016		16,850
2017		16,850
2018		16,850
2019		16,850
Thereafter		1,548,888
Total	$	1,624,713

Schedule of Impact of Corrections on Affected Financial Statements (Previously Issued Quarterly Periods)

The following table presents the impact of the corrections on previously issued periods included within this Quarterly Report on Form 10-Q (see the “Revision of Previously Issued Financial Statements” section of Note 1–Description of the Business and Basis of Presentation for further details):

	For the Three Months Ended June 30, 2014							For the Six Months Ended June 30, 2014
	As Previously Reported		Adjustments			As Revised		As Previously Reported			Adjustments			As Revised
Selected Statements of Comprehensive Income (Loss) Data:
Interest expense	$	20,638	$	(112	)	$	20,526	$	40,684		$	(454	)	$	40,230
Income (loss) before income taxes	$	59,994	$	112		$	60,106	$	(19,477	)	$	454		$	(19,023	)
Provision for (benefit from) income taxes	$	22,658	$	42		$	22,700	$	(7,382	)	$	170		$	(7,212	)
Net income (loss)	$	37,336	$	70		$	37,406	$	(12,095	)	$	284		$	(11,811	)
Net income (loss) per share:
Net income (loss) per share, basic	$	0.43	$	—		$	0.43	$	(0.14	)	$	(0.01	)	$	(0.13	)
Net income (loss) per share, diluted	$	0.43	$	—		$	0.43	$	(0.14	)	$	(0.01	)	$	(0.13	)

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows From Operating Activities:
Net loss	$ (37,789)	$ (11,811)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	93,964	84,362
Amortization of debt issuance costs and discounts	4,013	4,714
Loss on early extinguishment of debt and write-off of discounts and debt issuance costs	20,348
Loss on sale or disposal of assets	3,744	1,093
Loss on derivatives	287
Deferred income tax benefit	(24,268)	(8,268)
Equity-based compensation	3,251	1,335
Changes in assets and liabilities:
Accounts receivable	(22,608)	(7,501)
Inventories	(5,615)	(8,099)
Prepaid expenses and other current assets	511	(2,354)
Accounts payable	26,780	24,697
Accrued salaries, wages and benefits	4,610	(4,970)
Deferred revenue	71,485	53,799
Other accrued expenses	3,057	4,418
Other assets and liabilities	312	2,094
Net cash provided by operating activities	142,082	133,509
Cash Flows From Investing Activities:
Capital expenditures	(83,534)	(93,847)
Change in restricted cash	(179)	(229)
Net cash used in investing activities	(83,713)	(94,076)
Cash Flows From Financing Activities:
Proceeds from the issuance of debt	280,000
Repayment of long-term debt	(267,725)	(7,025)
Proceeds from draw on revolving credit facility	45,000	40,000
Repayment of revolving credit facility	(45,000)	(40,000)
Dividends paid to stockholders	(36,262)	(35,407)
Debt issuance costs	(4,571)
Redemption premium payment	(14,300)
Purchase of treasury stock	(5,650)	(50,706)
Payment of tax withholdings on equity-based compensation through shares withheld	(836)	(130)
Net cash used in financing activities	(49,344)	(93,268)
Change in Cash and Cash Equivalents	9,025	(53,835)
Cash and Cash Equivalents-Beginning of period	43,906	116,841
Cash and Cash Equivalents-End of period	52,931	63,006
Supplemental Disclosures of Noncash Investing and Financing Activities
Capital expenditures in accounts payable	18,984	22,215
Dividends declared, but unpaid	$ 18,391	$ 18,590

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Debt issuance costs	$ 15,285	$ 20,003
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	90,303,587	90,191,100
Treasury stock, shares	4,105,970	4,105,970

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. COMMITMENTS AND CONTINGENCIES

Securities Class Action Lawsuit

On September 9, 2014, a purported stockholder class action lawsuit consisting of purchasers of the Company’s common stock during the periods between April 18, 2013 to August 13, 2014, captioned Baker v. SeaWorld Entertainment, Inc., et al., Case No. 14-CV-02129-MMA (KSC), was filed in the U.S. District Court for the Southern District of California against the Company, the Chairman of the Company’s Board of Directors, certain of its executive officers and Blackstone. On February 27, 2015, Court-appointed Lead Plaintiffs, Pensionskassen For Børne- Og Ungdomspædagoger and Arkansas Public Employees Retirement System, together with additional plaintiffs, Oklahoma City Employee Retirement System and Pembroke Pines Firefighters and Police Officers Pension Fund (collectively, “Plaintiffs”), filed an amended complaint against the Company, the Chairman of the Company’s Board of Directors, certain of its executive officers, Blackstone, and underwriters of the initial public offering and secondary public offerings. The amended complaint alleges, among other things, that the prospectus and registration statements filed contained materially false and misleading information in violation of the federal securities laws and seeks unspecified compensatory damages and other relief. Plaintiffs contend that defendants knew or were reckless in not knowing that Blackfish was impacting SeaWorld’s business at the time of each public statement. On May 29, 2015, the Company and the other defendants filed a motion to dismiss the amended complaint. The plaintiffs filed an opposition to the motion to dismiss on July 31, 2015. The reply of the Company and the other defendants is due on September 18, 2015. The Company believes that the class action lawsuit is without merit and intends to defend the lawsuit vigorously; however, there can be no assurance regarding the ultimate outcome of this lawsuit.

Shareholder Derivative Lawsuit

On December 8, 2014, a putative derivative lawsuit captioned Kistenmacher v. Atchison, et al., Civil Action No. 10437, was filed in the Court of Chancery of the State of Delaware against, among others, the Chairman of the Board of Directors, certain of the Company’s executive officers, directors and shareholders, and Blackstone. The Company is a “Nominal Defendant” in the lawsuit. On March 30, 2015, the plaintiff filed an amended complaint against the same set of defendants. The amended complaint alleges, among other things, that the defendants breached their fiduciary duties, aided and abetted breaches of fiduciary duties, violated Florida Blue Sky laws and were unjustly enriched by (i) including materially false and misleading information in the prospectus and registration statements; and (ii) causing the Company to repurchase certain shares of its common stock from certain shareholders at an alleged artificially inflated price. The Company does not maintain any direct exposure to loss in connection with this shareholder derivative lawsuit as the lawsuit does not assert any claims against the Company. The Company’s status as a “Nominal Defendant” in the action reflects the fact that the lawsuit is maintained by the named plaintiff on behalf of the Company and that the plaintiff seeks damages on the Company’s behalf. On May 21, 2015, the defendants filed a motion to stay the lawsuit pending resolution of the Company’s securities class action lawsuit. Plaintiff has opposed defendants’ motion to stay, which is currently pending before the court. On June 29, 2015, the defendants filed a motion to dismiss the amended complaint.

Consumer Class Action Lawsuits

On March 25, 2015, a purported class action was filed in the United States District Court for the Southern District of California against the Company, captioned Holly Hall v. SeaWorld Entertainment, Inc., Case No. 3:15-cv-00600-CAB-RBB (the “Hall Matter”). The complaint identifies three putative classes consisting of all consumers nationwide who at any time during the four-year period preceding the filing of the original complaint, purchased an admission ticket, a membership or a SeaWorld “experience” that includes an “orca experience” from the SeaWorld amusement park in San Diego, California, Orlando, Florida or San Antonio, Texas respectively. The complaint alleges causes of action under California Unfair Competition Law, California Consumers Legal Remedies Act, California False Advertising Law, California Deceit statute, Florida Unfair and Deceptive Trade Practices Act, Texas Deceptive Trade Practices Act, as well as claims for Unjust Enrichment. Plaintiffs’ claims are based on their allegations that the Company misrepresented the physical living conditions and care and treatment of its killer whales, resulting in confusion or misunderstanding among ticket purchasers, and omitted material facts regarding its killer whales with intent to deceive and mislead the plaintiff and purported class members. The complaint further alleges that the specific misrepresentations heard and relied upon by Holly Hall, the sole named plaintiff, in purchasing her SeaWorld tickets concerned the circumstances surrounding the death of a SeaWorld trainer. The complaint seeks actual damages, equitable relief, attorney’s fees and costs. Plaintiff claims that the amount in controversy exceeds $5,000, but the liability exposure is speculative until the size of the class is determined (if certification is granted at all). The case is in the preliminary stages and a response to the complaint has not yet been filed.

In addition, four other purported class actions were filed against the Company and its affiliates in the following federal courts on April 9, 2015, April 16, 2015, April 17, 2015 and May 7, 2015, respectively: (i) the United States District Court for the Middle District of Florida, captioned Joyce Kuhl v. SeaWorld LLC et al., 6:15-cv-00574-ACC-GJK, (ii) the United States District Court for the Southern District of California, captioned Jessica Gaab, et. al. v. SeaWorld Entertainment, Inc., Case No. 15:cv-842-CAB-RBB (the “Gaab Matter”), (iii) the United States District Court for the Western District of Texas, captioned Elaine Salazar Browne v. SeaWorld of Texas LLC et al., 5:15-cv-00301-XR and (iv) the United States District Court for the Southern District of California, captioned Valerie Simo et al. v. SeaWorld Entertainment, Inc., Case No. 15:cv-1022-CAB-RBB (the “Simo Matter”). These cases, in essence, reiterate the claims made and relief sought in the Hall Matter. On May 1, 2015, the cases in Florida and Texas were voluntarily dismissed without prejudice by the respective plaintiffs.

On April 13, 2015, a purported class action was filed in the Superior Court of the State of California for the City and County of San Francisco against SeaWorld Parks and Entertainment, Inc., captioned Marc Anderson, et. al., v. SeaWorld Parks and Entertainment, Inc., Case No. CGC-15-545292 (the “Anderson Matter”). The putative class consists of all consumers within California who, within the past four years, purchased tickets to SeaWorld San Diego. On May 11, 2015, the plaintiffs filed a First Amended Class Action Complaint (the “Amended Complaint”). The Amended Complaint alleges causes of action under the California False Advertising Law, California Unfair Competition Law and California Consumers Legal Remedies Act. Plaintiffs’ claims are based on their allegations that the Company misrepresented the physical living conditions and care and treatment of its killer whales, resulting in confusion or misunderstanding among ticket purchasers, and omitted material facts regarding its killer whales with intent to deceive and mislead the plaintiff and purported class members. The Amended Complaint seeks actual damages, equitable relief, attorneys’ fees and costs. Based on Plaintiff’s definition of the class, the amount in controversy exceeds $5,000, but the liability exposure is speculative until the size of the class is determined (if certification is granted at all). On May 14, 2015, the Company removed the case to the United States District Court for the Northern District of California, Case No. 15:cv-2172-SC. The case is in the preliminary stages and a response to the Amended Complaint has not yet been filed. On May 19, 2015, the plaintiffs filed a motion to remand. This motion is set for hearing on August 28, 2015.

On May 14, 2015, the Company filed a motion before the Judicial Panel on Multidistrict Litigation to have the Hall, Gaab, Simo, and Anderson Matters centralized and transferred to the Middle District of Florida, Orlando Division. The hearing on the Company’s motion to transfer was held on July 30, 2015 and on August 5, 2015 the Judicial Panel denied the Company’s motion. The Company believes that these consumer class action lawsuits are without merit and intends to defend these lawsuits vigorously; however, there can be no assurance regarding the ultimate outcome of these lawsuits.

Other Matters

The Company is a party to other various claims and legal proceedings arising in the normal course of business. From time to time, third-party groups may also bring lawsuits against the Company. Matters where an unfavorable outcome to the Company is probable and which can be reasonably estimated are accrued. Such accruals, which are not material for any period presented, are based on information known about the matters, the Company’s estimate of the outcomes of such matters, and the Company’s experience in contesting, litigating and settling similar matters. Matters that are considered reasonably possible to result in a material loss are not accrued for, but an estimate of the possible loss or range of loss is disclosed, if such amount or range can be determined. Management does not expect any known claims or legal proceedings to have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 03, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Trading Symbol	SEAS
Entity Registrant Name	SeaWorld Entertainment, Inc.
Entity Central Index Key	0001564902
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		90,208,315

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Equity-Based Compensation

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity-Based Compensation

11. EQUITY-BASED COMPENSATION

In accordance with ASC 718, Compensation-Stock Compensation, the Company measures the cost of employee services rendered in exchange for share-based compensation based upon the grant date fair market value. The cost, net of estimated forfeitures, is recognized over the requisite service period, which is generally the vesting period unless service or performance conditions require otherwise. The Company has granted stock options, time-vesting restricted share awards and performance-vesting restricted share awards. The Company uses the Black-Scholes Option Pricing Model to value its stock options and the closing stock price on the date of grant to value both its time-vesting and performance-vesting restricted share awards.

The Company has reserved 15,000,000 shares of common stock for issuance under the Company’s 2013 Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan is administered by the Compensation Committee of the Board of Directors, and provides that the Company may grant equity incentive awards to eligible employees, directors, consultants or advisors in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based and performance compensation awards. If an award under the Omnibus Incentive Plan terminates, lapses, or is settled without the payment of the full number of shares subject to the award, the undelivered shares may be granted again under the Omnibus Incentive Plan.

As of June 30, 2015, there were 11,359,427 shares of common stock available for future issuance under the Company’s Omnibus Incentive Plan. Total equity compensation expense was $1,398 and $3,251 for the three and six months ended June 30, 2015, and $573 and $1,335 for the three and six months ended June 30, 2014, and is included in selling, general and administrative expenses and in operating expenses in the accompanying unaudited condensed consolidated statements of comprehensive income (loss). Total unrecognized equity compensation expense for all equity compensation awards probable of vesting as of June 30, 2015 was approximately $19,400 which is expected to be recognized over the respective service periods.

The activity related to the Company’s time-vesting and performance-vesting share awards during the six months ended June 30, 2015 is as follows:

						Performance-Vesting Restricted shares
	Time-Vesting Restricted shares					Bonus Performance Restricted shares					Long-Term Incentive Performance Restricted shares					2.25x Performance Restricted shares					2.75x Performance Restricted shares
	Shares			Weighted Average Grant Date Fair Value per Share		Shares			Weighted Average Grant Date Fair Value per Share		Shares			Weighted Average Grant Date Fair Value per Share		Shares			Weighted Average Grant Date Fair Value per Share		Shares			Weighted Average Grant Date Fair Value per Share
Outstanding at December 31, 2014		164,545		$	11.68		—			—		—			—		1,451,453		$	20.96		1,451,453		$	12.61
Granted		667,441		$	19.06		447,627		$	19.02		75,832		$	18.96		—			—		—			—
Vested		(154,325	)	$	14.45		—			—		—			—		—			—		—			—
Forfeited		(51,214	)	$	11.81		(14,164	)	$	18.96		(8,345	)	$	18.96		(77,791	)	$	22.89		(77,791	)	$	15.75
Outstanding at June 30, 2015		626,447		$	18.85		433,463		$	19.03		67,487		$	18.96		1,373,662		$	20.81		1,373,662		$	12.36

The activity related to the Company’s stock option awards during the six months ended June 30, 2015 is as follows:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2014		—			—
Granted		1,992,594		$	19.53
Exercised		—			—
Forfeited		(58,166	)	$	18.96
Outstanding at June 30, 2015		1,934,428		$	19.55		9.7	$	8,710
Exercisable at June 30, 2015		—			—		—		—

Key weighted-average assumptions utilized in the Black-Scholes Option Pricing Model for stock options granted during the six months ended June 30, 2015 were:

Grant date fair value	$	4.50
Risk-free interest rate		1.63	%
Expected volatility		36.67	%
Expected dividend yield		4.28	%
Expected life (in years)		6.25

The expected life was estimated using the simplified method, as the Company does not have sufficient historical exercise data due to the limited period of time its common stock has been publicly traded. In addition, due to the Company’s limited history as a public company, the volatility for the Company’s stock at the date of each grant was estimated using the average volatility calculated for a peer group, which is based upon daily price observations over the estimated term of options granted.

2015 Bonus Plan Grant

On March 3, 2015, the Board approved an annual bonus plan (the “2015 Bonus Plan”) for the fiscal year ending December 31, 2015 (the “Fiscal 2015”) under which certain employees are eligible to receive a bonus with respect to Fiscal 2015, payable 50% in cash and 50% in performance-vesting restricted shares (the “Bonus Performance Restricted shares”) based upon the Company’s achievement of pre-established performance goals with respect to Adjusted EBITDA. Once Adjusted EBITDA is finalized for Fiscal 2015, the Bonus Performance Restricted shares vest if the performance goal is met and forfeit immediately if the performance goal is not met or if the employee terminates prior to the last day of Fiscal 2015. Subsequent grants were made on July 1 and may be made on October 1, 2015 to newly hired bonus-eligible employees based on their hire date and/or to certain newly promoted employees.

In accordance with ASC 718, equity compensation expense is not recorded until the performance condition is probable of being achieved. Based on the Company’s progress toward the Adjusted EBITDA performance goal, the Bonus Performance Restricted shares are not considered probable of vesting as of June 30, 2015; therefore, no equity compensation expense has been recorded related to these shares. If the performance condition is considered probable of being achieved in a subsequent period, all equity compensation expense that would have been recorded over the requisite service period had the condition been considered probable from inception, will be recorded as a cumulative catch-up at such subsequent date. Total unrecognized equity compensation expense related to the Bonus Performance Restricted shares not considered probable of vesting was approximately $8,200 as of June 30, 2015.

2015 Long-Term Incentive Plan Grant

On March 3, 2015, the Board also approved a long-term incentive plan grant (the “2015 Long-Term Incentive Plan”) for Fiscal 2015 comprised of nonqualified stock options (“Long-Term Incentive Options”), time-vesting restricted shares (“Long-Term Incentive Time Restricted shares”) and performance-vesting restricted shares (“Long-Term Incentive Performance Restricted shares”) to certain of the Company’s management and executive officers. Subsequent grants were made on July 1 and may be made on October 1, 2015 to newly hired or promoted management and executive officers as deemed appropriate.

Long-Term Incentive Options

The Long-Term Incentive Options vest ratably over four years from the date of grant (25% per year), subject to continued employment through the applicable vesting date and will expire 10 years from the date of grant or earlier if the employee’s service terminates. The options have an exercise price per share equal to the closing price of the Company’s common stock on the date of grant. Equity compensation expense will be recognized using the straight line method over the four year vesting period.

Time-Vesting Restricted Shares

The Long-Term Incentive Time Restricted shares vest ratably over four years from the date of grant (25% per year), subject to continued employment through the applicable vesting date. Equity compensation expense will be recognized using the straight line method over the four year vesting period.

Performance-Vesting Restricted Stock

The Long-Term Incentive Performance Restricted shares vest following the end of a three-year performance period beginning on January 1, 2015 and ending on December 31, 2017 based upon the Company’s achievement of certain performance goals with respect to Adjusted EBITDA for each fiscal year performance period. The total number of shares eligible to vest is based on the level of achievement of the Adjusted EBITDA target for each fiscal year in the performance period which ranges from 0% (if below threshold performance), to 50% (for threshold performance), to 100% (for target performance), and up to 200% (at or above maximum performance). For actual performance between the specified threshold, target, and maximum levels, the resulting vesting percentage will be adjusted on a linear basis. Total shares earned (approximately 33% are eligible to be earned per year) based on the actual performance percentage for each performance year will vest on the date the Company’s Compensation Committee determines the actual performance percentage for fiscal year 2017 if the employee has not terminated prior to the last day of fiscal year 2017 and all unearned shares will forfeit immediately as of such date. The Adjusted EBITDA target for each fiscal year will be set in the first quarter of each respective year, at which time the grant date and the grant-date fair value for accounting purposes related to that performance year will be established based on the closing price of the Company’s stock on such date. Equity compensation expense will be recognized ratably for each fiscal year, if the performance condition is probable of being achieved, beginning on the date of grant and through the end of the final performance period on December 31, 2017.

During the six months ended June 30, 2015, the Company awarded 202,491 Long-Term Incentive Performance Restricted shares, net of forfeitures, under the 2015 Long-Term Incentive Plan, which represents the total shares that could be earned under the maximum performance level of achievement for all three performance periods combined, with approximately one-third related to each respective performance period. The performance goal for the first performance period was established as of the award date, as such, for accounting purposes, 67,487 of these shares have a grant date of March 3, 2015 and a grant-date fair value per share of $18.96 determined using the closing price of the Company’s common stock on the date of grant. The performance targets for the second and third performance periods have not yet been set and will be determined by the Compensation Committee during the first quarter of each respective fiscal year, at which time, for accounting purposes, the grant date and respective grant-date fair value will be determined for those related shares. As the Long-Term Incentive Performance Restricted shares have both a service and a performance condition, the requisite service period over which equity compensation expense will be recognized once the performance condition is probable of achievement begins on the date of grant and extends through December 31, 2017. Based on the Company’s progress toward the Adjusted EBITDA performance goal for the first performance period, a percentage of the target performance level for the first performance period is considered probable, as such 21,597 Long-Term Incentive Performance Restricted shares related to the 2015 performance year are considered probable of vesting as of June 30, 2015. Total unrecognized equity compensation expense related to the first performance period expected to be recognized over the remaining vesting term if performance conditions continue to be probable of vesting at the current percentage of the target performance level was approximately $365 as of June 30, 2015. Unrecognized equity compensation expense related to the maximum performance level for the first performance period is an additional $870 as of June 30, 2015. Total unrecognized equity compensation expense related to the second and third performance periods has not been determined as the grant date and grant-date fair value for these awards have not yet occurred for accounting purposes, as such no expense has been recorded related to the second and third performance periods.

Other 2015 Grants

On January 15, 2015, the Company granted 100,000 time-vesting restricted shares to its Interim Chief Executive Officer (the “Interim CEO”) in accordance with his appointment to such role. The shares had a grant date fair value per share of $16.50 and a vest date on the earlier of the start date of a new Chief Executive Officer or June 30, 2015. As a new Chief Executive Officer was appointed with a start date of April 7, 2015, these shares fully vested on such date accordingly. Also during the six months ended June 30, 2015, the Company granted 49,284 of time-vesting restricted shares to certain Board members. These shares vest ratably over a three-year term.

On April 7, 2015, in connection with the appointment of the Company’s new President and Chief Executive Officer, the Company granted 27,623 Bonus Performance Restricted shares, 249,875 time-vesting restricted shares and 1,089,324 nonqualified stock options to the Company’s President and Chief Executive Officer. The time-vesting restricted shares and the nonqualified stock options vest ratably over four years.

2.25x and 2.75x Performance Restricted Shares

The Company has outstanding under both its Omnibus Incentive Plan and its previous incentive plan (the “Pre-IPO Incentive Plan”) certain performance-vesting restricted shares consisting of 2.25x and 2.75x Performance Restricted shares. The 2.25x Performance Restricted shares will vest if the employee is employed by the Company when and if certain investment funds affiliated with Blackstone receive cash proceeds (not subject to any clawback, indemnity or similar contractual obligation) in respect of their Partnerships units equal to (x) a 20% annualized effective compounded return rate on such funds’ investment and (y) a 2.25x multiple on such funds’ investment. The 2.75x Performance Restricted shares will vest if the employee is employed by the Company when and if such funds receive cash proceeds (not subject to any clawback, indemnity or similar contractual obligation) in respect of their Partnerships units equal to (x) a 15% annualized effective compounded return rate on such funds’ investment and (y) a 2.75x multiple on such funds’ investment.

No equity compensation expense will be recorded related to the 2.25x and 2.75x Performance Restricted shares until their vesting is probable. Accordingly, no equity compensation expense has been recorded during the three and six months ended June 30, 2015 or 2014 related to these 2.25x and 2.75x Performance Restricted shares. Total unrecognized equity compensation expense as of June 30, 2015, was approximately $29,000 and $17,000 for the 2.25x and 2.75x Performance Restricted shares, respectively.

Based on cash proceeds previously received by certain investment funds affiliated with Blackstone from the Company’s initial public offering and subsequent secondary offerings of stock, the Company’s repurchase of shares and the cumulative dividends paid by the Company through July 1, 2015, if such funds receive additional future cash proceeds of approximately $7,000 and other vesting conditions are satisfied, the 2.25x Performance Restricted shares will vest. Similarly, if such funds receive additional future cash proceeds of approximately $435,000 and other vesting conditions are satisfied, the 2.75x Performance Restricted shares will vest. As receipt of these future cash proceeds will be primarily related to liquidity events, such as secondary offerings of stock, the shares are not considered probable of vesting until such events are consummated.

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net revenues:
Admissions	$ 238,451	$ 249,263	$ 375,291	$ 386,649
Food, merchandise and other	153,165	155,888	230,917	230,792
Total revenues	391,616	405,151	606,208	617,441
Costs and expenses:
Cost of food, merchandise and other revenues	31,112	33,651	47,015	50,411
Operating expenses (exclusive of depreciation and amortization shown separately below)	191,202	189,190	345,013	357,102
Selling, general and administrative	73,320	58,564	124,398	103,640
Restructuring and other related costs	122		267
Secondary offering costs		73		747
Depreciation and amortization	50,110	43,086	93,964	84,362
Total costs and expenses	345,866	324,564	610,657	596,262
Operating income (loss)	45,750	80,587	(4,449)	21,179
Other expense (income), net	209	(45)	470	(28)
Interest expense	15,732	20,526	35,910	40,230
Loss on early extinguishment of debt and write-off of discounts and debt issuance costs	20,348		20,348
Income (loss) before income taxes	9,461	60,106	(61,177)	(19,023)
Provision for (benefit from) income taxes	3,652	22,700	(23,388)	(7,212)
Net income (loss)	5,809	37,406	(37,789)	(11,811)
Other comprehensive income (loss):
Unrealized loss on derivatives, net of tax	(3,747)	(872)	(4,620)	(1,080)
Comprehensive income (loss)	$ 2,062	$ 36,534	$ (42,409)	$ (12,891)
Earnings (loss) per share:
Net income (loss) per share, basic	$ 0.07	$ 0.43	$ (0.44)	$ (0.13)
Net income (loss) per share, diluted	$ 0.07	$ 0.43	$ (0.44)	$ (0.13)
Weighted average common shares outstanding:
Basic	86,186	86,877	86,142	87,642
Diluted	86,291	87,189	86,142	87,642
Cash dividends declared per share:
Cash dividends declared per share	$ 0.21	$ 0.21	$ 0.63	$ 0.41

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Other Accrued Expenses

6 Months Ended

Jun. 30, 2015

Payables and Accruals [Abstract]

Other Accrued Expenses

5. OTHER ACCRUED EXPENSES

Other accrued expenses at June 30, 2015 and December 31, 2014, consisted of the following:

	June 30,		December 31,
	2015		2014
Accrued property taxes	$	7,339	$	2,039
Accrued interest		464		2,604
Self-insurance reserve		7,078		7,800
Other		2,002		7,706
Total other accrued expenses	$	16,883	$	20,149

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Income Taxes

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

4. INCOME TAXES

Income tax expense or benefit is recognized based on the Company’s estimated annual effective tax rate which is based upon the tax rate expected for the full calendar year applied to the pre-tax income or loss of the interim period. The Company’s consolidated effective tax rate for the three and six months ended June 30, 2015 was 38.6% and 38.2%, respectively, and differs from the statutory federal income tax rate primarily due to state income taxes and other permanent items. The Company’s consolidated effective tax rate for the three and six months ended June 30, 2014 was 37.8% and 37.9%, respectively, and differs from the statutory federal income tax rate primarily due to state income taxes and other permanent items.

The Company has determined that there are no positions currently taken that would rise to a level requiring an amount to be recorded or disclosed as an uncertain tax position. If such positions do arise, it is the Company’s intent that any interest or penalty amount related to such positions will be recorded as a component of tax expense to the applicable period.

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Other Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2015

Payables and Accruals [Abstract]

Schedule of Other Accrued Expenses

Other accrued expenses at June 30, 2015 and December 31, 2014, consisted of the following:

	June 30,		December 31,
	2015		2014
Accrued property taxes	$	7,339	$	2,039
Accrued interest		464		2,604
Self-insurance reserve		7,078		7,800
Other		2,002		7,706
Total other accrued expenses	$	16,883	$	20,149

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Stockholders' Equity

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Stockholders' Equity

12. STOCKHOLDERS’ EQUITY

As of June 30, 2015, 90,303,587 shares of common stock were issued on the accompanying unaudited condensed consolidated balance sheet, which excludes 4,009,725 unvested shares of common stock held by certain participants in the Company’s equity compensation plans (see Note 11–Equity-Based Compensation) and includes 4,105,970 shares of treasury stock held by the Company.

Dividends

The Board has adopted a policy to pay, subject to legally available funds, a regular quarterly dividend. The payment of cash dividends is within the discretion of the Board and depends on many factors, including, but not limited to, the Company’s results of operations, financial condition, level of indebtedness, capital requirements, contractual restrictions, restrictions in its debt agreements and in any preferred stock, business prospects and other factors that the Board may deem relevant.

In the six months ended June 30, 2015, the Board declared or paid quarterly cash dividends to all common stockholders of record as follows:

Record Date	Payment Date	Cash Dividend per Common Share
January 13, 2015	January 22, 2015	$	0.21
March 13, 2015	April 1, 2015	$	0.21
June 22, 2015	July 1, 2015	$	0.21

As the Company had an accumulated deficit at the time the March 13 and June 22, 2015 dividends were declared, these dividends were accounted for as a return of capital and recorded as a reduction to additional paid-in capital on the accompanying unaudited condensed consolidated statement of changes in stockholders’ equity. Dividends declared to common stockholders were $54,482 in the six months ended June 30, 2015. The Company expects that for tax purposes, a portion of these dividends will be treated as a return of capital to stockholders.

As of June 30, 2015, the Company had $18,391 of cash dividends recorded as dividends payable in the accompanying unaudited condensed consolidated balance sheet, of which approximately $18,100 was paid on July 1, 2015. The remainder of the dividends payable relates to unvested time restricted shares and unvested performance restricted shares with a performance condition considered probable of being achieved. These shares carry dividend rights and therefore the dividends will be paid as the shares vest in accordance with the underlying stock compensation grants. These dividend rights will be forfeited if the shares do not vest.

Dividends on the 2.25x and 2.75x Performance Restricted shares were approximately $2,540 for each tranche and will accumulate and be paid only if and to the extent these 2.25x and 2.75x Performance Restricted shares vest in accordance with their terms. Dividends on the Bonus Performance Restricted shares were approximately $177 and will accumulate and be paid only if these shares vest in accordance with their terms. Dividends on the Long-Term Incentive Performance Restricted shares related to the first performance period were approximately $28, of which approximately $9 was recorded related to the portion of the shares considered probable of vesting. The remainder will accumulate and be paid only if the respective shares vest in accordance with their terms. The Company does not record a dividend payable when the performance conditions on the related unvested shares are not considered probable of being achieved.

Secondary Offerings and Share Repurchases

In April 2014, the selling stockholders completed an underwritten secondary offering of 17,250,000 shares of common stock. The selling stockholders received all of the net proceeds from the offering and no shares were sold by the Company. In the three and six months ended June 30, 2014, the Company incurred fees and expenses of $73 and $747, respectively, in connection with the secondary offering, which is shown as secondary offering expense on the accompanying unaudited condensed consolidated statements of comprehensive income (loss).

Concurrently with the closing of the secondary offering in April 2014, the Company repurchased 1,750,000 shares of its common stock directly from the selling stockholders in a private, non-underwritten transaction at a price per share equal to the price per share paid to the selling stockholders by the underwriters in the secondary offering.

On August 12, 2014, the Board authorized the repurchase of up to $250,000 of the Company’s common stock (the “Share Repurchase Program”). Under the Share Repurchase Program, the Company is authorized to repurchase shares through open market purchases, privately-negotiated transactions or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Exchange Act. The Share Repurchase Program has no time limit and may be suspended or discontinued completely at any time. The number of shares to be purchased and the timing of purchases will be based on the level of the Company’s cash balances, general business and market conditions, and other factors, including legal requirements, debt covenant restrictions and alternative investment opportunities.

Pursuant to the Share Repurchase Program, during the fourth quarter of 2014, the Company repurchased a total of 855,970 shares of common stock at an average price of $17.50 per share and a total cost of approximately $15,000, leaving $235,000 available for future repurchases under the Share Repurchase Program. During the six months ended June 30, 2015, the Company paid $5,650 for settlement of shares repurchased in December 2014. No shares were repurchased in the six months ended June 30, 2015 under the Share Repurchase Program.

All of the repurchased shares from the Share Repurchase Program and shares repurchased directly from the selling stockholders during previous secondary offerings were recorded as treasury stock at a total cost of $109,871 as of June 30, 2015 and December 31, 2014 and are reflected as a reduction to stockholders’ equity on the accompanying unaudited condensed consolidated balance sheets and unaudited condensed consolidated statement of changes in stockholders’ equity.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

8. FAIR VALUE MEASUREMENTS

Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement is required to be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

The Company has determined that the majority of the inputs used to value its derivative financial instruments using the income approach fall within Level 2 of the fair value hierarchy. The Company uses readily available market data to value its derivatives, such as interest rate curves and discount factors. ASC 820, Fair Value Measurement, also requires consideration of credit risk in the valuation. The Company uses a potential future exposure model to estimate this credit valuation adjustment (“CVA”). The inputs to the CVA are largely based on observable market data, with the exception of certain assumptions regarding credit worthiness which make the CVA a Level 3 input. Based on the magnitude of the CVA, it is not considered a significant input and the derivatives are classified as Level 2. Of the Company’s long-term obligations, the Term B-2 Loans and Term B-3 Loans are classified in Level 2 of the fair value hierarchy. The fair value of the term loans as of June 30, 2015 approximates their carrying value due to the variable nature of the underlying interest rates and the frequent intervals at which such interest rates are reset. The Senior Notes were classified in Level 3 of the fair value hierarchy as of December 31, 2014 and were valued using significant inputs that are not observable in the market including a discount rate of 11.37% and projected cash flows of the underlying Senior Notes as of December 31, 2014. The Senior Notes were redeemed in full on April 7, 2015 as discussed in Note 6–Long-Term Debt.

There were no transfers between Levels 1, 2 or 3 during the three or six months ended June 30, 2015. The Company did not have any assets measured at fair value as of June 30, 2015. The following table presents the Company’s estimated fair value measurements and related classifications as of June 30, 2015:

	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at June 30, 2015
Liabilities:
Derivative financial instruments (a)	$	—	$	8,384	$	—	$	8,384
Long-term obligations (b)	$	—	$	1,624,713	$	—	$	1,624,713

(a) Reflected at fair value in the unaudited condensed consolidated balance sheet as other liabilities of $8,384.

(b) Reflected at carrying value in the unaudited condensed consolidated balance sheet as current maturities on long-term debt of $16,850 and long-term debt of $1,584,365 as of June 30, 2015.

There were no transfers between Levels 1, 2 or 3 during the year ended December 31, 2014. The Company did not have any assets measured at fair value as of December 31, 2014. The following table presents the Company’s estimated fair value measurements and related classifications as of December 31, 2014:

	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at December 31, 2014
Liabilities:
Derivative financial instruments (a)	$	—	$	628	$	—	$	628
Long-term obligations (b)	$	—	$	1,352,438	$	263,197	$	1,615,635

(a) Reflected at fair value in the unaudited condensed consolidated balance sheet as other liabilities of $628.

(b) Reflected at carrying value in the unaudited condensed consolidated balance sheet as current maturities on long-term debt of $14,050 and long-term debt of $1,569,400 as of December 31, 2014.

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Long-Term Debt

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Long-Term Debt

6. LONG-TERM DEBT

Long-term debt as of June 30, 2015 and December 31, 2014 consisted of the following:

	June 30,			December 31,
	2015			2014
Term B-2 Loans (effective interest rate of 3.26% at June 30, 2015 and December 31, 2014)	$	1,345,413		$	1,352,438
Term B-3 Loans (effective interest rate of 4.33% at June 30, 2015)		279,300			—
Revolving Credit Facility		—			—
Senior Notes (effective interest rate of 12.07% at December 31, 2014)		—			260,000
Total long-term debt		1,624,713			1,612,438
Less discounts		(8,213	)		(8,985	)
Less debt issuance costs		(15,285	)		(20,003	)
Less current maturities		(16,850	)		(14,050	)
Total long-term debt, net	$	1,584,365		$	1,569,400

SEA is the borrower under the senior secured credit facilities, as amended pursuant to a credit agreement dated as of December 1, 2009 (the “Senior Secured Credit Facilities”). Also on December 1, 2009, SEA issued $400,000 aggregate principal amount of unsecured senior notes due December 1, 2016 (the “Senior Notes”).

On March 30, 2015, SEA entered into an incremental term loan amendment, Amendment No. 7 (the “Incremental Amendment”), to its existing Senior Secured Credit Facilities. On April 7, 2015, SEA borrowed $280,000 of additional term loans (the “Term B-3 Loans”) pursuant to the Incremental Amendment. The proceeds, along with cash on hand, were used to redeem all of the $260,000 outstanding principal of the Senior Notes at a redemption price of 105.5% plus accrued and unpaid interest and pay fees, costs and other expenses in connection with the Term B-3 Loans. The redemption premium of $14,300 along with a write-off of approximately $6,048 in related discounts and debt issuance costs is included in the loss on early extinguishment of debt and write-off of discounts and debt issuance costs on the accompanying unaudited condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2015.

In connection with the issuance of the Term B-3 Loans, SEA recorded a discount of $1,400 and debt issuance costs of $3,171 during the three months ended June 30, 2015. Debt issuance costs and discounts are amortized to interest expense using the effective interest method over the term of the Senior Secured Credit Facilities and are included in long-term debt, net, in the accompanying unaudited condensed consolidated balance sheets. See Note 2–Recently Issued Accounting Pronouncements for more details on the Company’s adoption of ASU 2015-03 in the second quarter of 2015.

As of June 30, 2015, SEA was in compliance with all covenants in the provisions contained in the documents governing the Senior Secured Credit Facilities.

Senior Secured Credit Facilities

As of June 30, 2015, the Senior Secured Credit Facilities consisted of $1,345,413 in Term B-2 Loans and $279,300 in Term B-3 Loans, which will mature on May 14, 2020, along with $192,500 in a senior secured revolving credit facility (the “Revolving Credit Facility”), which was not drawn upon as of June 30, 2015. The Revolving Credit Facility will mature on the earlier of (a) April 24, 2018 and (b) the 91st day prior to the maturity date of any indebtedness incurred to refinance any of the term loans.

Term B-2 Loans

The Term B-2 Loans were initially borrowed in an aggregate principal amount of $1,405,000. Borrowings under the Senior Secured Credit Facilities bear interest, at SEA’s option, at a rate equal to a margin over either (a) a base rate determined by reference to the higher of (1) the rate of interest in effect for such day as publicly announced from time to time by Bank of America, N.A. as its “prime rate” and (2) the federal funds effective rate plus 1/2 of 1% or (b) a LIBOR rate determined by reference to the British Bankers Association (“BBA”) LIBOR rate, or the successor thereto if the BBA is no longer making a LIBOR rate available, for the interest period relevant to such borrowing. The applicable margin for the Term B-2 Loans is 1.25%, in the case of base rate loans, and 2.25%, in the case of LIBOR rate loans, subject to a base rate floor of 1.75% and a LIBOR floor of 0.75%. The applicable margin for the Term B-2 Loans (under either a base rate or LIBOR rate) is subject to one 25 basis point step-down upon achievement by SEA of a certain total net leverage ratio. At June 30, 2015, SEA selected the LIBOR rate (interest rate of 3.00% at June 30, 2015).

The Term B-2 Loans amortize in equal quarterly installments in an aggregate annual amount equal to 1.0% of the original principal amount of the Term B-2 Loans on May 14, 2013, with the balance due on the final maturity date, of May 14, 2020. SEA may voluntarily repay amounts outstanding under the Senior Secured Credit Facilities at any time without premium or penalty, other than customary “breakage” costs with respect to LIBOR loans.

SEA is required to prepay the outstanding Term B-2 loans, subject to certain exceptions, with (i) 50% of SEA’s annual “excess cash flow” (with step-downs to 25% and 0%, as applicable, based upon achievement by SEA of a certain total net leverage ratio), subject to certain exceptions; (ii) 100% of the net cash proceeds of certain non-ordinary course asset sales or other dispositions subject to reinvestment rights and certain exceptions; and (iii) 100% of the net cash proceeds of any incurrence of debt by SEA or any of its restricted subsidiaries, other than debt permitted to be incurred or issued under the Senior Secured Credit Facilities.

Notwithstanding any of the foregoing, each lender of term loans has the right to reject its pro rata share of mandatory prepayments described above, in which case SEA may retain the amounts so rejected. The foregoing mandatory prepayments will be applied pro rata to installments of term loans in direct order of maturity. There were no mandatory prepayments during the three or six months ended June 30, 2015 or 2014 since none of the events indicated above occurred.

SEA may also increase and/or add one or more incremental term loan facilities to the Senior Secured Credit Facilities and/or increase commitments under the Revolving Credit Facility in an aggregate principal amount of up to $350,000. SEA may also incur additional incremental term loans provided that, among other things, on a pro forma basis after giving effect to the incurrence of such incremental term loans, the First Lien Secured Leverage Ratio, as defined in the Senior Secured Credit Facility, is no greater than 3.50 to 1.00.

As of June 30, 2015, SEA had approximately $18,000 of outstanding letters of credit, leaving approximately $174,500 available for borrowing.

Term B-3 Loans

Borrowings of Term B-3 Loans bear interest at a fluctuating rate per annum equal to, at SEA’s option, (i) a base rate equal to the higher of (a) the federal funds rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America, N.A. as its “prime rate” or (ii) a LIBOR rate determined by reference to the BBA LIBOR rate, or the successor thereto if the BBA is no longer making a LIBOR rate available, for the interest period relevant to such borrowing. The applicable margin for the Term B-3 Loans is 2.25%, in the case of base rate loans, and 3.25%, in the case of LIBOR rate loans, subject to a base rate floor of 1.75% and a LIBOR floor of 0.75%. At June 30, 2015, SEA selected the LIBOR rate (interest rate of 4.00% at June 30, 2015).

The Term B-3 Loans amortize in equal quarterly installments in an aggregate annual amount equal to 1.0% of the original principal amount of the Term B-3 Loans on the date of effectiveness of the Incremental Amendment, with the balance due on the final maturity date of May 14, 2020. Except as set forth in the preceding sentence, the Term B-3 Loans contain identical mandatory and voluntary prepayments as those applicable to Term B-2 Loans. SEA may voluntarily repay outstanding loans at any time without premium or penalty, other than a prepayment premium on voluntary prepayments of Term B-3 Loans in connection with certain repricing transactions on or prior to the date that is six months after the effectiveness of the Incremental Amendment and customary “breakage” costs with respect to LIBOR loans.

All other terms of the Term B-3 Loans are substantially identical to the terms applicable to the Term B-2 Loans under the Senior Secured Credit Facilities.

Revolving Credit Facility

Borrowings of loans under the Revolving Credit Facility bear interest at a fluctuating rate per annum equal to, at SEA’s option, a base rate equal to the higher of (a) the federal funds rate plus  ¹⁄₂ of 1%, and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America, N.A. as its “prime rate”.

The applicable margin for borrowings under the Revolving Credit Facility is 1.75%, in the case of base rate loans, and 2.75%, in the case of LIBOR rate loans. The applicable margin (under either a base rate or LIBOR rate) is subject to one 25 basis point step-down upon achievement by SEA of certain corporate credit ratings. At June 30, 2015, SEA selected the LIBOR rate and achieved the corporate credit ratings for an applicable LIBOR margin of 2.50%.

In addition to paying interest on outstanding principal under the Senior Secured Credit Facilities, SEA is required to pay a commitment fee to the lenders under the Revolving Credit Facility in respect of the unutilized commitments thereunder at a rate of 0.50% per annum. SEA is also required to pay customary letter of credit fees.

Restrictive Covenants

The Senior Secured Credit Facilities contain a number of customary negative covenants. Such covenants, among other things, restrict, subject to certain exceptions, the ability of SEA and its restricted subsidiaries to incur additional indebtedness; make guarantees; create liens on assets; enter into sale and leaseback transactions; engage in mergers or consolidations; sell assets; make fundamental changes; pay dividends and distributions or repurchase SEA’s capital stock; make investments, loans and advances, including acquisitions; engage in certain transactions with affiliates; make changes in nature of the business; and make prepayments of junior debt. The Senior Secured Credit Facilities also contain covenants requiring SEA to maintain specified maximum annual capital expenditures, a maximum total net leverage ratio and a minimum interest coverage ratio. All of the net assets of SEA and its consolidated subsidiaries are restricted and there are no unconsolidated subsidiaries of SEA.

The Senior Secured Credit Facilities permit restricted payments in an aggregate amount per annum not to exceed the greater of (1) 6% of initial public offering net proceeds received by SEA or (2) (a) $90,000, so long as, on a Pro Forma Basis (as defined in the Senior Secured Credit Facilities) after giving effect to the payment of any such restricted payment, the Total Leverage Ratio, (as defined in the Senior Secured Credit Facilities), is no greater than 5.00 to 1.00 and greater than 4.50 to 1.00, (b) $120,000, so long as, on a Pro Forma Basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 4.50 to 1.00 and greater than 4.00 to 1.00, (c) the greater of (A) $120,000 and (B) 7.5% of Market Capitalization (as defined in the Senior Secured Credit Facilities), so long as, on a Pro Forma Basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 4.00 to 1.00 and greater than 3.50 to 1.00 and (d) an unlimited amount, so long as, on a Pro Forma Basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 3.50 to 1.00.

As of June 30, 2015, the Total Leverage Ratio as calculated under the Senior Secured Credit Facilities was 4.42 to 1.00, which results in the Company having a $120,000 capacity for restricted payments in 2015. During the six months ended June 30, 2015, the Company has used approximately $54,500 of its available restricted payments capacity. As a result, the Company currently has the ability to declare dividends or make certain other restricted payments in an aggregate amount of up to approximately $65,500 for the remainder of calendar year 2015. The amount available for dividend declarations, share repurchases and certain other restricted payments under the covenant restrictions in the debt agreements adjusts at the beginning of each quarter as set forth above.

Long-term debt at June 30, 2015, is repayable as follows:

Years Ending December 31,
2015	$	8,425
2016		16,850
2017		16,850
2018		16,850
2019		16,850
Thereafter		1,548,888
Total	$	1,624,713

Revision of Previously Issued Financial Statements

The following table presents the impact of the corrections on previously issued periods included within this Quarterly Report on Form 10-Q (see the “Revision of Previously Issued Financial Statements” section of Note 1–Description of the Business and Basis of Presentation for further details):

	For the Three Months Ended June 30, 2014							For the Six Months Ended June 30, 2014
	As Previously Reported		Adjustments			As Revised		As Previously Reported			Adjustments			As Revised
Selected Statements of Comprehensive Income (Loss) Data:
Interest expense	$	20,638	$	(112	)	$	20,526	$	40,684		$	(454	)	$	40,230
Income (loss) before income taxes	$	59,994	$	112		$	60,106	$	(19,477	)	$	454		$	(19,023	)
Provision for (benefit from) income taxes	$	22,658	$	42		$	22,700	$	(7,382	)	$	170		$	(7,212	)
Net income (loss)	$	37,336	$	70		$	37,406	$	(12,095	)	$	284		$	(11,811	)
Net income (loss) per share:
Net income (loss) per share, basic	$	0.43	$	—		$	0.43	$	(0.14	)	$	(0.01	)	$	(0.13	)
Net income (loss) per share, diluted	$	0.43	$	—		$	0.43	$	(0.14	)	$	(0.01	)	$	(0.13	)

Interest Rate Swap Agreements

On June 10, 2015, the Company entered into five forward interest rate swap agreements (“the Forward Swaps”) to effectively fix the interest rate on the three month LIBOR-indexed interest payments associated with $1,000,000 of SEA’s outstanding long-term debt. The Forward Swaps have an effective date of September 30, 2016; have a total notional amount of $1,000,000; mature on May 14, 2020; require the Company to pay a weighted-average fixed rate of 2.45% per annum; pay swap counterparties a variable rate of interest based upon the greater of 0.75% or the three month BBA LIBOR; and have interest settlement dates occurring on the last day of September, December, March and June through maturity.

As of June 30, 2015, SEA has four traditional interest rate swap agreements (collectively, the “Interest Rate Swap Agreements”). Three of the interest rate swap agreements have a combined notional amount of $1,000,000; mature on September 30, 2016; require the Company to pay a fixed rate of interest between 1.049% and 1.051% per annum; pay swap counterparties a variable rate of interest based upon the greater of 0.75% or the three month BBA LIBOR; and have interest settlement dates occurring on the last day of March, June, September and December through maturity.

In April 2015, the Company executed the fourth traditional interest rate swap agreement to effectively fix the interest rate on $250,000 of the Term B-3 Loans. The interest rate swap has an effective date of June 30, 2015; has a notional amount of $250,000; is scheduled to mature on September 30, 2016; requires the Company to pay a fixed rate of interest of 0.901% per annum; pays swap counterparties a variable rate of interest based upon the greater of 0.75% or the three month BBA LIBOR; and has interest settlement dates occurring on the last day of September, December, March and June through maturity.

SEA designated the Interest Rate Swap Agreements and the Forward Swaps above as qualifying cash flow hedge accounting relationships as further discussed in Note 7–Derivative Instruments and Hedging Activities which follows.

Cash paid for interest relating to the Senior Secured Credit Facilities, the Senior Notes and the Interest Rate Swap Agreements was $35,201 and $37,355 for the six month period ended June 30, 2015 and 2014, respectively.

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Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

7. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. The Company does not speculate using derivative instruments.

As of June 30, 2015 and December 31, 2014, the Company did not have any derivatives outstanding that were not designated in hedge accounting relationships.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. During the three and six months ended June 30, 2015 and 2014, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. As of June 30, 2015, the Company had four outstanding interest rate swap agreements with a combined notional value of $1,250,000 and five forward interest rate swap agreements with a combined notional value of $1,000,000 that were designated as cash flow hedges of interest rate risk. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and six months ended June 30, 2015, a loss of $1 and $287, respectively, related to the ineffective portion was recognized in other expense (income), net on the accompanying unaudited condensed consolidated statements of comprehensive income (loss). There was no ineffective portion during the three or six months ended June 30, 2014. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next 12 months, the Company estimates that an additional $3,252 will be reclassified as an increase to interest expense.

Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014:

	As of June 30, 2015			As of December 31, 2014
	Liability Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate swaps	Other liabilities	$	2,516	Other liabilities	$	628
Forward interest rate swaps	Other liabilities		5,868			—
Total derivatives designated as hedging instruments		$	8,384		$	628

The unrealized loss on derivatives is recorded net of a tax benefit of $2,892 for the six months ended June 30, 2015, and is included within the unaudited condensed consolidated statements of changes in stockholders’ equity.

Tabular Disclosure of the Effect of Derivative Instruments on the Statements of Comprehensive Income (Loss)

The table below presents the pre-tax effect of the Company’s derivative financial instruments on the unaudited condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014:

	Three Months Ended June 30						Six Months Ended June 30
	2015			2014			2015			2014
Derivatives in Cash Flow Hedging Relationships:
Loss related to effective portion of derivatives recognized in accumulated other comprehensive loss	$	(6,832	)	$	(2,147	)	$	(8,981	)	$	(2,873	)
Gain related to effective portion of derivatives reclassified from accumulated other comprehensive loss to interest expense	$	739		$	738		$	1,469		$	1,133
Loss related to ineffective portion of derivatives recognized in other expense (income), net	$	(1	)	$	—		$	(287	)	$	—

Credit Risk-Related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations.

As of June 30, 2015, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $9,980. As of June 30, 2015, the Company has posted no collateral related to these agreements. If the Company had breached any of these provisions at June 30, 2015, it could have been required to settle its obligations under the agreements at their termination value of $9,980.

Changes in Accumulated Other Comprehensive Loss

The following table reflects the changes in accumulated other comprehensive loss for the six months ended June 30, 2015, net of tax:

Accumulated other comprehensive loss:	(Losses) Gains on Cash Flow Hedges
Balance at December 31, 2014	$	(483	)
Other comprehensive loss before reclassifications		(5,523	)
Amounts reclassified from accumulated other comprehensive loss to interest expense		903
Unrealized loss on derivatives, net of tax		(4,620	)
Balance at June 30, 2015	$	(5,103	)

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Related-Party Transactions

6 Months Ended

Jun. 30, 2015

Related Party Transactions [Abstract]

Related-Party Transactions

9. RELATED-PARTY TRANSACTIONS

On January 5, March 3 and June 10, 2015, the Board declared a cash dividend of $0.21 per share to all common stockholders of record at the close of business on January 13, March 13 and June 22, 2015, respectively. In connection with these dividend declarations, certain affiliates of Blackstone were paid dividends in the amount of $4,095 on January 22, April 1 and July 1, 2015 (see Note 12–Stockholders’ Equity).

The Company repurchased shares of its common stock from the selling stockholders concurrently with the closing of the secondary offering in April 2014. See further discussion in Note 12–Stockholders’ Equity.

As of June 30, 2015, approximately $81,000 aggregate principal amount of Term B-2 Loans and $23,000 aggregate principal amount of Term B-3 Loans were owned by affiliates of Blackstone. As of December 31, 2014, approximately $65,000 aggregate principal amount of the Senior Notes and approximately $87,000 aggregate principal amount of Term B-2 Loans were owned by affiliates of Blackstone. The Company makes periodic interest payments on such debt in accordance with its terms. On April 7, 2015, the Senior Notes were redeemed as discussed in Note 6–Long-Term Debt.

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Income Taxes - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Effective tax rate	38.60%	37.80%	38.20%	37.90%

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Equity-Based Compensation - Schedule of Employee Stock Performance Activity (Detail) - 6 months ended Jun. 30, 2015 - $ / shares	Total
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding, Ending Balance	4,009,725
Time-Vesting Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding, Beginning Balance	164,545
Shares, Granted	667,441
Shares, Vested	(154,325)
Shares, Forfeited	(51,214)
Shares, Outstanding, Ending Balance	626,447
Weighted Average Grant Date Fair Value per Share, Outstanding, Beginning Balance	$ 11.68
Weighted Average Grant Date Fair Value per Share, Granted	19.06
Weighted Average Grant Date Fair Value per Share, Vested	14.45
Weighted Average Grant Date Fair Value per Share, Forfeited	11.81
Weighted Average Grant Date Fair Value per Share, Outstanding, Ending Balance	$ 18.85
Bonus Performance Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Granted	447,627
Shares, Forfeited	(14,164)
Shares, Outstanding, Ending Balance	433,463
Weighted Average Grant Date Fair Value per Share, Granted	$ 19.02
Weighted Average Grant Date Fair Value per Share, Forfeited	18.96
Weighted Average Grant Date Fair Value per Share, Outstanding, Ending Balance	$ 19.03
Long-Term Incentive Performance Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Granted	75,832
Shares, Forfeited	(8,345)
Shares, Outstanding, Ending Balance	67,487
Weighted Average Grant Date Fair Value per Share, Granted	$ 18.96
Weighted Average Grant Date Fair Value per Share, Forfeited	18.96
Weighted Average Grant Date Fair Value per Share, Outstanding, Ending Balance	$ 18.96
2.25x Performance Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding, Beginning Balance	1,451,453
Shares, Forfeited	(77,791)
Shares, Outstanding, Ending Balance	1,373,662
Weighted Average Grant Date Fair Value per Share, Outstanding, Beginning Balance	$ 20.96
Weighted Average Grant Date Fair Value per Share, Forfeited	22.89
Weighted Average Grant Date Fair Value per Share, Outstanding, Ending Balance	$ 20.81
2.75x Performance Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding, Beginning Balance	1,451,453
Shares, Forfeited	(77,791)
Shares, Outstanding, Ending Balance	1,373,662
Weighted Average Grant Date Fair Value per Share, Outstanding, Beginning Balance	$ 12.61
Weighted Average Grant Date Fair Value per Share, Forfeited	15.75
Weighted Average Grant Date Fair Value per Share, Outstanding, Ending Balance	$ 12.36

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Description of the Business and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC. The unaudited condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K.

In the opinion of management, such unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations for the year ending December 31, 2015 or any future period due to the seasonal nature of the Company’s operations. Based upon historical results, the Company typically generates its highest revenues in the second and third quarters of each year and incurs a net loss in the first and fourth quarters, in part because six of its theme parks are only open for a portion of the year.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including SEA. All intercompany accounts have been eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions include, but are not limited to, the accounting for self-insurance, deferred tax assets, deferred revenue, equity compensation and the valuation of goodwill and other indefinite-lived intangible assets. Actual results could differ from those estimates.

Segment Reporting

Segment Reporting

The Company maintains discrete financial information for each of its eleven theme parks, which is used by the Chief Operating Decision Maker (“CODM”), identified as the Chief Executive Officer, as a basis for allocating resources. Each theme park has been identified as an operating segment and meets the criteria for aggregation due to similar economic characteristics. In addition, all of the theme parks provide similar products and services and share similar processes for delivering services. The theme parks have a high degree of similarity in the workforces and target similar consumer groups. Accordingly, based on these economic and operational similarities and the way the CODM monitors the operations, the Company has concluded that its operating segments may be aggregated and that it has one reportable segment.

Reclassifications

Reclassifications

Certain prior year amounts have been reclassified to conform to the 2015 presentation, in particular debt issuance costs, which were previously included in other assets, have been reclassified to long-term debt as a result of the adoption of a new Accounting Standards Update (“ASU”). See Note 2–Recently Issued Accounting Pronouncement for further details.

Revision of Previously Issued Financial Statements

Revision of Previously Issued Financial Statements

In the third quarter of 2014, the Company conducted an internal review of its application of the guidance in Accounting Standards Codification (“ASC”) 470-50, Debt-Modifications and Extinguishments, to its accounting for certain debt transactions in 2013, 2012 and 2011. As a result of this review and analysis, the Company determined that it had incorrectly applied the accounting guidance in ASC 470-50 and inappropriately accounted for certain fees as a result of modifications and prepayments in certain years. In accordance with ASC 250 (SEC Staff Accounting Bulletin 99, Assessing Materiality), the Company concluded that the correction of the errors was not material to any of its previously issued annual or interim financial statements. The Company has revised its previously issued financial statements contained in this Quarterly Report on Form 10-Q to correct the effect of these immaterial errors for the corresponding periods. See Note 6–Long-Term Debt for the impact of revisions on previously issued periods contained within this Quarterly Report on Form 10-Q.

Recently Issued Accounting Pronouncements

The Company reviews new accounting pronouncements as they are issued or proposed by the Financial Accounting Standards Board (“FASB”).

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. This ASU simplifies the accounting for inventory by requiring inventory to be measured at the “lower of cost and net realizable value” and eliminates options that currently exist for measuring inventory at “market value”. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. The ASU is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. The Company does not expect a material impact to its consolidated financial statements upon adoption of this ASU.

In June 2015, the Company elected to early adopt ASU No. 2015-03, Interest – Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs. This ASU simplifies the accounting for debt issuance costs by requiring such costs to be presented as a direct deduction from the related debt liability rather than as an asset. Debt disclosures include the face amount of the debt liability and the effective interest rate. The ASU has been applied retrospectively as a change in accounting principle for all periods presented in the accompanying unaudited condensed consolidated balance sheets. As a result of adopting this ASU, the Company reclassified $20,003 of unamortized debt issuance costs at December 31, 2014, from other assets to long-term debt on the accompanying unaudited condensed consolidated balance sheet. The adoption of this ASU did not impact the Company’s consolidated results of operations, stockholders’ equity or cash flows. See Note 6–Long-Term Debt for further details.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB approved a proposed ASU to defer the effective date to annual reporting periods beginning after December 15, 2017 using one of two retrospective application methods with earlier adoption permitted for annual periods beginning after December 15, 2016. The Company is evaluating the accounting and disclosure requirements on its consolidated financial statements but does not currently anticipate a material impact to the consolidated financial statements upon adoption; however, the Company is in the process of evaluating the effect this ASU will have on the classification of revenue and related disclosures.

Equity-Based Compensation

In accordance with ASC 718, Compensation-Stock Compensation, the Company measures the cost of employee services rendered in exchange for share-based compensation based upon the grant date fair market value. The cost, net of estimated forfeitures, is recognized over the requisite service period, which is generally the vesting period unless service or performance conditions require otherwise. The Company has granted stock options, time-vesting restricted share awards and performance-vesting restricted share awards. The Company uses the Black-Scholes Option Pricing Model to value its stock options and the closing stock price on the date of grant to value both its time-vesting and performance-vesting restricted share awards.

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value

The following table presents the Company’s estimated fair value measurements and related classifications as of June 30, 2015:

	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at June 30, 2015
Liabilities:
Derivative financial instruments (a)	$	—	$	8,384	$	—	$	8,384
Long-term obligations (b)	$	—	$	1,624,713	$	—	$	1,624,713

(a) Reflected at fair value in the unaudited condensed consolidated balance sheet as other liabilities of $8,384.

(b) Reflected at carrying value in the unaudited condensed consolidated balance sheet as current maturities on long-term debt of $16,850 and long-term debt of $1,584,365 as of June 30, 2015.

There were no transfers between Levels 1, 2 or 3 during the year ended December 31, 2014. The Company did not have any assets measured at fair value as of December 31, 2014. The following table presents the Company’s estimated fair value measurements and related classifications as of December 31, 2014:

	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at December 31, 2014
Liabilities:
Derivative financial instruments (a)	$	—	$	628	$	—	$	628
Long-term obligations (b)	$	—	$	1,352,438	$	263,197	$	1,615,635

(a) Reflected at fair value in the unaudited condensed consolidated balance sheet as other liabilities of $628.

(b) Reflected at carrying value in the unaudited condensed consolidated balance sheet as current maturities on long-term debt of $14,050 and long-term debt of $1,569,400 as of December 31, 2014.

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Commitments and Contingencies - Additional Information (Detail)	Jun. 30, 2015 USD ($)
Minimum [Member]
Loss Contingencies [Line Items]
Amount in controversy, not recorded	$ 5,000,000

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Derivative Instruments and Hedging Activities - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) Swap	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) Swap	Jun. 30, 2014 USD ($)	Jun. 10, 2015 USD ($)	Dec. 31, 2014 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Loss related to ineffective portion of derivatives recognized in other expense(income), net	$ 1,000	$ 0	$ 287,000	$ 0
Reclassified as an increase to interest expense, expected during the next 12 months	3,252,000		3,252,000
Tax benefit on unrealized loss on derivatives			(2,892,000)
Termination value of derivatives in a net liability position	9,980,000		9,980,000
Collateral posted relating to credit risk-related contingent features	0		0
Forward Interest Rate Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of interest rate swap					$ 1,000,000,000
Combined Interest Rate Cash Flow Hedges, All Swaps [Member] | Interest Rate Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of interest rate swap	$ 1,250,000,000		$ 1,250,000,000
Number of outstanding interest rate derivatives | Swap	4		4
Combined Interest Rate Cash Flow Hedges, All Swaps [Member] | Forward Interest Rate Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of interest rate swap	$ 1,000,000,000		$ 1,000,000,000
Number of outstanding interest rate derivatives | Swap	5		5
Not Designated as Hedge Accounting Relationships [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives outstanding	$ 0		$ 0			$ 0

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Condensed Consolidated Statements of Changes in Stockholders' Equity - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock, at Cost [Member]
Beginning Balance at Dec. 31, 2014	$ 579,535	$ 902	$ 655,471	$ 33,516	$ (483)	$ (109,871)
Beginning Balance, shares at Dec. 31, 2014	90,191,100	90,191,100
Equity-based compensation	$ 3,251		3,251
Unrealized loss on derivatives, net of tax	(4,620)				(4,620)
Vesting of restricted shares		$ 1	(1)
Vesting of restricted shares, shares		154,325
Shares withheld for tax withholdings	(836)		(836)
Shares withheld for tax withholdings, shares		(41,838)
Cash dividends declared to stockholders, net of forfeitures	(54,482)		(36,388)	(18,094)
Net loss	(37,789)			(37,789)
Ending Balance at Jun. 30, 2015	$ 485,059	$ 903	$ 621,497	$ (22,367)	$ (5,103)	$ (109,871)
Ending Balance, shares at Jun. 30, 2015	90,303,587	90,303,587

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Earnings (Loss) per Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings (Loss) per Share

3. EARNINGS (LOSS) PER SHARE

Earnings (loss) per share is computed as follows:

	Three Months Ended June 30,												Six Months Ended June 30,
	2015						2014						2015								2014
	Net Income		Shares		Per Share Amount		Net Income		Shares		Per Share Amount		Net Loss			Shares		Per Share Amount			Net Loss			Shares		Per Share Amount
Basic earnings (loss) per share	$	5,809		86,186	$	0.07	$	37,406		86,877	$	0.43	$	(37,789	)		86,142	$	(0.44	)	$	(11,811	)		87,642	$	(0.13	)
Effect of dilutive incentive-based awards				105						312							—								—
Diluted earnings (loss) per share	$	5,809		86,291	$	0.07	$	37,406		87,189	$	0.43	$	(37,789	)		86,142	$	(0.44	)	$	(11,811	)		87,642	$	(0.13	)

In accordance with the Earnings Per Share Topic of the ASC, basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period (excluding treasury stock and unvested restricted stock). The shares of unvested restricted stock are eligible to receive dividends; however, dividend rights will be forfeited if the award does not vest. Accordingly, only vested shares of outstanding restricted stock are included in the calculation of basic earnings per share. The weighted average number of repurchased shares during the period, if any, which are held as treasury stock are excluded from common stock outstanding.

Diluted earnings (loss) per share is determined using the treasury stock method based on the dilutive effect of unvested restricted stock and certain shares of common stock that are issuable upon exercise of stock options. There were approximately 1,933,000 and 17,000 anti-dilutive shares of common stock excluded from the computation of diluted earnings per share during the three months ended June 30, 2015 and 2014, respectively. During the six months ended June 30, 2015 and 2014, the Company excluded potentially dilutive shares of approximately 1,583,000 and 324,000, respectively, from the calculation of diluted loss per share as their effect would have been anti-dilutive due to the Company’s net loss in those periods.

The Company’s outstanding performance share awards are considered contingently issuable shares and are excluded from the calculation of diluted earnings (loss) per share as the performance criteria has not been met as of the end of the reporting period. See further discussion in Note 11–Equity-Based Compensation.

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Equity-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Employee Stock Performance Activity

The activity related to the Company’s time-vesting and performance-vesting share awards during the six months ended June 30, 2015 is as follows:

						Performance-Vesting Restricted shares
	Time-Vesting Restricted shares					Bonus Performance Restricted shares					Long-Term Incentive Performance Restricted shares					2.25x Performance Restricted shares					2.75x Performance Restricted shares
	Shares			Weighted Average Grant Date Fair Value per Share		Shares			Weighted Average Grant Date Fair Value per Share		Shares			Weighted Average Grant Date Fair Value per Share		Shares			Weighted Average Grant Date Fair Value per Share		Shares			Weighted Average Grant Date Fair Value per Share
Outstanding at December 31, 2014		164,545		$	11.68		—			—		—			—		1,451,453		$	20.96		1,451,453		$	12.61
Granted		667,441		$	19.06		447,627		$	19.02		75,832		$	18.96		—			—		—			—
Vested		(154,325	)	$	14.45		—			—		—			—		—			—		—			—
Forfeited		(51,214	)	$	11.81		(14,164	)	$	18.96		(8,345	)	$	18.96		(77,791	)	$	22.89		(77,791	)	$	15.75
Outstanding at June 30, 2015		626,447		$	18.85		433,463		$	19.03		67,487		$	18.96		1,373,662		$	20.81		1,373,662		$	12.36

Schedule of Activity Related to Stock Option Awards

The activity related to the Company’s stock option awards during the six months ended June 30, 2015 is as follows:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2014		—			—
Granted		1,992,594		$	19.53
Exercised		—			—
Forfeited		(58,166	)	$	18.96
Outstanding at June 30, 2015		1,934,428		$	19.55		9.7	$	8,710
Exercisable at June 30, 2015		—			—		—		—

Schedule of Key Weighted-average Assumptions Utilized in Black-Scholes Option Pricing Model for Stock Options Granted

Key weighted-average assumptions utilized in the Black-Scholes Option Pricing Model for stock options granted during the six months ended June 30, 2015 were:

Grant date fair value	$	4.50
Risk-free interest rate		1.63	%
Expected volatility		36.67	%
Expected dividend yield		4.28	%
Expected life (in years)		6.25

XML

Label	Element	Value
Gains (Losses) on Extinguishment of Debt	us-gaap_GainsLossesOnExtinguishmentOfDebt	$ (20,348)
Depreciation, Depletion and Amortization, Nonproduction	us-gaap_DepreciationAndAmortization	43,086
Depreciation, Depletion and Amortization, Nonproduction	us-gaap_DepreciationAndAmortization	$ 50,110

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Long-Term Debt - Additional Information (Detail)		3 Months Ended		6 Months Ended
	Apr. 07, 2015 USD ($)	Jun. 30, 2015 USD ($) Swap	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) Swap	Jun. 30, 2014 USD ($)	Jun. 10, 2015 USD ($)	Apr. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)	May. 14, 2013	Dec. 01, 2009 USD ($)
Debt Instrument [Line Items]
Unamortized discount		$ 8,213,000		$ 8,213,000				$ 8,985,000
Long-term debt		1,624,713,000		1,624,713,000				1,612,438,000
Mandatory prepayments		0	$ 0	0	$ 0
Outstanding letters of credit		18,000,000		18,000,000
Letters of credit available amount		174,500,000		$ 174,500,000
Commitment fees on unused portion of facility				0.50%
Restrictive covenants, description				The Senior Secured Credit Facilities permit restricted payments in an aggregate amount per annum not to exceed the greater of (1) 6% of initial public offering net proceeds received by SEA or (2) (a) $90,000, so long as, on a Pro Forma Basis (as defined in the Senior Secured Credit Facilities) after giving effect to the payment of any such restricted payment, the Total Leverage Ratio, (as defined in the Senior Secured Credit Facilities), is no greater than 5.00 to 1.00 and greater than 4.50 to 1.00, (b) $120,000, so long as, on a Pro Forma Basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 4.50 to 1.00 and greater than 4.00 to 1.00, (c) the greater of (A) $120,000 and (B) 7.5% of Market Capitalization (as defined in the Senior Secured Credit Facilities), so long as, on a Pro Forma Basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 4.00 to 1.00 and greater than 3.50 to 1.00 and (d) an unlimited amount, so long as, on a Pro Forma Basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 3.50 to 1.00.
Percentage of initial public offering net proceeds in restricted payments				6.00%
Percentage of Market Capitalization on restricted payment				7.50%
Restrictive covenants, restricted payments used				$ 54,500,000
Restrictive covenants, restricted payments capacity remaining				65,500,000
Cash paid for interest				$ 35,201,000	$ 37,355,000
Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, balance										$ 400,000,000
Long-term debt, maturity date				Dec. 01, 2016
Redemption price for Senior Notes Percentage	105.50%
Debt redemption premium	$ 14,300,000
Write-off discounts and debt issuance costs	6,048,000
Long-term debt								260,000,000
Term B-3 Loans [Member]
Debt Instrument [Line Items]
Debt instrument, balance	280,000,000
Long-term debt, maturity date				May 14, 2020
Repayment of Senior Notes outstanding principal amount	$ 260,000,000
Unamortized discount		1,400,000		$ 1,400,000
Debt issuance costs		3,171,000
Long-term debt		$ 279,300,000		$ 279,300,000
Interest rate, description				Borrowings of Term B-3 Loans bear interest at a fluctuating rate per annum equal to, at SEA's option, (i) a base rate equal to the higher of (a) the federal funds rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America, N.A. as its "prime rate" or (ii) a LIBOR rate determined by reference to the BBA LIBOR rate, or the successor thereto if the BBA is no longer making a LIBOR rate available, for the interest period relevant to such borrowing.
Debt instrument interest rate selected percentage		4.00%		4.00%
Percent of original principal amount on effective date used to calculate aggregate annual amount which will amortize in equal quarterly installments	1.00%
Term B-2 Loans [Member]
Debt Instrument [Line Items]
Debt instrument, balance										$ 1,405,000,000
Long-term debt, maturity date				May 14, 2020
Long-term debt		$ 1,345,413,000		$ 1,345,413,000				$ 1,352,438,000
Interest rate, description				The Term B-2 Loans were initially borrowed in an aggregate principal amount of $1,405,000. Borrowings under the Senior Secured Credit Facilities bear interest, at SEA’s option, at a rate equal to a margin over either (a) a base rate determined by reference to the higher of (1) the rate of interest in effect for such day as publicly announced from time to time by Bank of America, N.A. as its “prime rate” and (2) the federal funds effective rate plus 1/2 of 1% or (b) a LIBOR rate determined by reference to the British Bankers Association (“BBA”) LIBOR rate, or the successor thereto if the BBA is no longer making a LIBOR rate available, for the interest period relevant to such borrowing.
Basis point step-down in applicable margin, description				The applicable margin for the Term B-2 Loans (under either a base rate or LIBOR rate) is subject to one 25 basis point step-down upon achievement by SEA of a certain total net leverage ratio.
Basis point step down on applicable margin upon achievement of certain leverage ratio				0.25%
Debt instrument interest rate selected percentage		3.00%		3.00%
Percent of original principal amount on effective date used to calculate aggregate annual amount which will amortize in equal quarterly installments									1.00%
Senior Secured Credit Facilities [Member]
Debt Instrument [Line Items]
Percentage of annual excess cash flow used to prepay outstanding loan				50.00%
Percentage of net proceeds from sale of non-ordinary assets		100.00%		100.00%
Percentage of net proceeds incurrence of debt				100.00%
First lien secured net leverage ratio				3.50%
Federal Funds Rate [Member] | Term B-3 Loans [Member]
Debt Instrument [Line Items]
Applicable margin for Term Loans	0.50%
Federal Funds Rate [Member] | Term B-2 Loans [Member]
Debt Instrument [Line Items]
Applicable margin for Term Loans				0.50%
Base Rate Loan [Member] | Term B-3 Loans [Member]
Debt Instrument [Line Items]
Applicable margin for Term Loans	2.25%
Floor rate	1.75%
Base Rate Loan [Member] | Term B-2 Loans [Member]
Debt Instrument [Line Items]
Applicable margin for Term Loans				1.25%
Floor rate				1.75%
LIBOR Rate Loan [Member] | Term B-3 Loans [Member]
Debt Instrument [Line Items]
Applicable margin for Term Loans	3.25%
Floor rate	0.75%
LIBOR Rate Loan [Member] | Term B-2 Loans [Member]
Debt Instrument [Line Items]
Applicable margin for Term Loans				2.25%
Floor rate				0.75%
Interest Rate Swaps [Member]
Debt Instrument [Line Items]
Maturity of interest rate swap				Sep. 30, 2016
Variable rate of interest		0.75%		0.75%
Interest Rate Swaps [Member] | Term B-3 Loans [Member]
Debt Instrument [Line Items]
Notional amount of interest rate swap							$ 250,000,000
Maturity of interest rate swap				Sep. 30, 2016
Variable rate of interest		0.75%		0.75%
Fixed rate of interest on swaps		0.901%		0.901%
Interest Rate Swaps [Member] | Combined Interest Rate Cash Flow Hedges On Three Swaps [Member]
Debt Instrument [Line Items]
Notional amount of interest rate swap		$ 1,000,000,000		$ 1,000,000,000
Number of interest rate swap held | Swap		4		4
Number of interest rate derivatives held with combined notional amount | Swap		3		3
Interest Rate Swaps [Member] | Combined Interest Rate Cash Flow Hedges On Three Swaps [Member] | Maximum [Member]
Debt Instrument [Line Items]
Fixed rate of interest on swaps		1.051%		1.051%
Interest Rate Swaps [Member] | Combined Interest Rate Cash Flow Hedges On Three Swaps [Member] | Minimum [Member]
Debt Instrument [Line Items]
Fixed rate of interest on swaps		1.049%		1.049%
Forward Interest Rate Swaps [Member]
Debt Instrument [Line Items]
Notional amount of interest rate swap						$ 1,000,000,000
Maturity of interest rate swap				May 14, 2020
Variable rate of interest						0.75%
Weighted average fixed interest rate						2.45%
Subject to SEA Attaining Certain Total Leverage Ratios [Member] | Senior Secured Credit Facilities [Member] | Maximum [Member]
Debt Instrument [Line Items]
Percentage of annual excess cash flow used to prepay outstanding loan				25.00%
Subject to SEA Attaining Certain Total Leverage Ratios [Member] | Senior Secured Credit Facilities [Member] | Minimum [Member]
Debt Instrument [Line Items]
Percentage of annual excess cash flow used to prepay outstanding loan				0.00%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Senior secured revolving		$ 192,500,000		$ 192,500,000
Interest rate, description				Borrowings of loans under the Revolving Credit Facility bear interest at a fluctuating rate per annum equal to, at SEA's option, a base rate equal to the higher of (a) the federal funds rate plus 1/2 of 1%, and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America, N.A. as its "prime rate".
Basis point step-down in applicable margin, description				The applicable margin for borrowings under the Revolving Credit Facility is 1.75%, in the case of base rate loans, and 2.75%, in the case of LIBOR rate loans. The applicable margin (under either a base rate or LIBOR rate) is subject to one 25 basis point step-down upon achievement by SEA of certain corporate credit ratings.
Basis point step down on applicable margin upon achievement of certain leverage ratio				0.25%
Debt instrument interest rate selected percentage		2.50%		2.50%
Permitted increased commitments under the Revolving Credit Facility in aggregate principal amount		$ 350,000,000		$ 350,000,000
Revolving Credit Facility [Member] | Federal Funds Rate [Member]
Debt Instrument [Line Items]
Applicable margin for Term Loans				0.50%
Revolving Credit Facility [Member] | Base Rate Loan [Member]
Debt Instrument [Line Items]
Applicable margin for Term Loans				1.75%
Revolving Credit Facility [Member] | LIBOR Rate Loan [Member]
Debt Instrument [Line Items]
Applicable margin for Term Loans				2.75%
Restrictive Covenants [Member]
Debt Instrument [Line Items]
Restrictive covenants, restricted payments capacity available				$ 120,000,000
Restrictive Covenants [Member] | Senior Secured Credit Facilities [Member]
Debt Instrument [Line Items]
Total Leverage Ratio				4.42%
Restrictive Covenants [Member] | Subject to SEA Attaining Certain Total Leverage Ratios [Member]
Debt Instrument [Line Items]
Restricted payment on Senior Secured Credit Facilities				$ 90,000,000
Maximum Total Leverage Ratio				5.00%
Minimum Total Leverage Ratio				4.50%
Restrictive Covenants [Member] | Scenario Two [Member]
Debt Instrument [Line Items]
Restricted payment on Senior Secured Credit Facilities				$ 120,000,000
Maximum Total Leverage Ratio				4.50%
Minimum Total Leverage Ratio				4.00%
Restrictive Covenants [Member] | Scenario Three [Member]
Debt Instrument [Line Items]
Restricted payment on Senior Secured Credit Facilities				$ 120,000,000
Maximum Total Leverage Ratio				4.00%
Minimum Total Leverage Ratio				3.50%

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Restructuring Program

6 Months Ended

Jun. 30, 2015

Restructuring and Related Activities [Abstract]

Restructuring Program

13. RESTRUCTURING PROGRAM

In December 2014, the Company implemented a restructuring program in an effort to centralize certain operations and reduce duplication of functions to increase efficiencies (the “Restructuring Program”). The Restructuring Program involved the elimination of approximately 300 positions across the Company’s eleven theme parks and corporate headquarters. As a result, the Company has incurred total cumulative costs of $11,834 in pre-tax restructuring and other related costs associated with this Restructuring Program, of which $122 and $267 was incurred in the three and six months ended June 30, 2015, respectively, on the accompanying unaudited condensed consolidated statements of comprehensive income (loss). The Company does not expect to incur any additional costs associated with the Restructuring Plan as all continuing service obligations were completed as of June 30, 2015.

The Restructuring Program activity for the six months ended June 30, 2015 was as follows:

	Severance and Other Employment Expenses
Liability as of December 31, 2014	$	7,691
Costs incurred		267
Payments made		(7,958	)
Liability as of June 30, 2015	$	—