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Segment Information
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information
We use Consolidated Adjusted EBITDA (as defined below) and Adjusted EBITDA for each segment (as defined below) to compare operating results among our segments and allocate resources. The following table highlights our Adjusted EBITDA for each segment and reconciles Consolidated Adjusted EBITDA to Income (loss) from continuing operations for the three and six months ended June 30, 2014 and 2013.
 
For the three months ended June 30,
 
For the six months ended June 30,
 
2014
 
2013
 
2014
 
2013
 
(in millions)
Revenues:
 
 
 
 
 
 
 
Midwest segment (a)
$
296.4

 
$
87.1

 
$
576.7

 
$
174.2

South segment (b)
203.7

 
178.8

 
403.7

 
357.6

West segment (c)
53.7

 
—

 
104.3

 
—

 
553.8

 
265.9

 
1,084.7

 
531.8

Corporate and other
1.4

 
1.4

 
3.3

 
2.1

Total revenues
$
555.2

 
$
267.3

 
$
1,088.0

 
$
533.9

Adjusted EBITDA (d):
 
 
 
 
 
 
 
Midwest segment (a)
$
84.2

 
$
23.0

 
$
174.3

 
$
45.1

South segment (b)
62.0

 
46.2

 
126.7

 
93.9

West segment (c)
19.1

 
—

 
37.3

 
—

 
165.3

 
69.2

 
338.3

 
139.0

Corporate expenses and other (e)
(24.7
)
 
(6.4
)
 
(44.5
)
 
(11.4
)
Consolidated Adjusted EBITDA (d)
$
140.6

 
$
62.8

 
$
293.8

 
$
127.6

Other benefits (costs):
 
 
 
 
 
 
 
Depreciation and amortization
(58.8
)
 
(22.5
)
 
(117.1
)
 
(45.7
)
Pre-opening and development costs
(6.9
)
 
(17.2
)
 
(10.3
)
 
(24.8
)
Non-cash share-based compensation expense
(5.5
)
 
(3.4
)
 
(8.7
)
 
(5.2
)
Write-downs, reserves and recoveries, net
(2.6
)
 
(1.8
)
 
(3.2
)
 
(2.1
)
Interest expense, net
(62.0
)
 
(28.3
)
 
(128.8
)
 
(56.9
)
Loss from equity method investment
—

 
—

 
—

 
(92.2
)
Loss on early extinguishment of debt
(8.2
)
 
—

 
(8.2
)
 
—

Income tax benefit (expense)
1.1

 
3.3

 
(1.1
)
 
4.4

Income (loss) from continuing operations
$
(2.3
)
 
$
(7.1
)
 
$
16.4

 
$
(94.9
)

 
For the six months ended
June 30,
 
2014
 
2013
 
(in millions)
Capital expenditures:
 
 
 
Midwest segment
$
112.8

 
$
59.7

South segment
26.6

 
41.8

West segment
2.4

 
—

Corporate and other, including development projects and discontinued operations
7.9

 
4.9

 
$
149.7

 
$
106.4



(a)
Our Midwest segment consists of Ameristar Council Bluffs, located in Iowa, Ameristar East Chicago located in Indiana, Belterra located in Indiana, Ameristar Kansas City located in Missouri, Ameristar St. Charles located in Missouri, River City located in Missouri, and Belterra Park located in Ohio.
(b)
Our South segment consists of Ameristar Vicksburg located in Mississippi, Boomtown Bossier City located in Louisiana, Boomtown New Orleans located in Louisiana, L'Auberge Baton Rouge located in Louisiana and L'Auberge Lake Charles located in Louisiana.

(c)
Our West segment consists of Ameristar Black Hawk located in Colorado, and Cactus Petes and Horseshu both of which are located in Nevada.
(d)
We define Consolidated Adjusted EBITDA as earnings before interest income and expense, income taxes, depreciation, amortization, pre-opening and development expenses, non-cash share-based compensation, asset impairment costs, write-downs, reserves, recoveries, corporate-level litigation settlement costs, gain (loss) on sale of certain assets, loss on early extinguishment of debt, gain (loss) on sale of equity security investments, income (loss) from equity method investments, non-controlling interest and discontinued operations. We define Adjusted EBITDA for each operating segment as earnings before interest income and expense, income taxes, depreciation, amortization, pre-opening and development expenses, non-cash share-based compensation, asset impairment costs, write-downs, reserves, recoveries, inter-company management fees, gain (loss) on sale of certain assets, gain (loss) on early extinguishment of debt, gain (loss) on sale of discontinued operations, and discontinued operations. We define Adjusted EBITDA margin as Adjusted EBITDA for the segment divided by segment revenues. We use Consolidated Adjusted EBITDA and Adjusted EBITDA for each segment to compare operating results among our properties and between accounting periods. Consolidated Adjusted EBITDA and Adjusted EBITDA have economic substance because they are used by management as measures to analyze the performance of our business and are especially relevant in evaluating large, long-lived casino-hotel projects because they provide a perspective on the current effects of operating decisions separated from the substantial non-operational depreciation charges and financing costs of such projects. We eliminate the results from discontinued operations at the time they are deemed discontinued. We also review pre-opening and development expenses separately, as such expenses are also included in total project costs when assessing budgets and project returns, and because such costs relate to anticipated future revenues and income. We believe that Consolidated Adjusted EBITDA and Adjusted EBITDA are useful measures for investors because they are indicators of the performance of ongoing business operations. These calculations are commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare operating performance and value of companies within our industry. In addition, our credit agreement and bond indentures require compliance with financial measures similar to Consolidated Adjusted EBITDA. Consolidated Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, or as an alternative to any other measure provided in accordance with GAAP. Our calculations of Adjusted EBITDA and Consolidated Adjusted EBITDA may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
(e)
Corporate expenses represent payroll, professional fees, travel expenses and other general and administrative expenses not directly related to our casino and hotel operations. Beginning in the 2013 third quarter, we changed the methodology used to allocate corporate expenses to our reportable segments.  Historically, we allocated direct and some indirect expenses incurred at the corporate headquarters to each property.  Expenses incurred at the corporate headquarters that were related to property operations, but not directly attributable to a specific property, were allocated, typically on a pro rata basis, to each property.  Only the remaining corporate expenses that were not related to an operating property were retained in the Corporate expense category. Under our new methodology, only corporate expenses that are directly attributable to a property were allocated to each applicable property. All other costs incurred relating to management and consulting services provided by corporate headquarters to the properties are now allocated to those properties based on their respective share of the monthly consolidated net revenues in the form of a management fee. The corporate management fee is excluded in the calculation of segment Adjusted EBITDA and is completely eliminated in any consolidated financial results. The change in methodology increases Adjusted EBITDA for the reportable segments with a corresponding increase in corporate expense, resulting in no impact to Consolidated Adjusted EBITDA.