Acquisitions (Tables)

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Allocation of purchase price

The following table reflects the preliminary allocation of the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed, with the excess recorded as goodwill:

(in thousands)	January 1, 2019
Cash and cash equivalents	$	10,756
Receivables, prepaid expenses, and other current assets	7,058
Property and equipment	21,731
Goodwill (1)	39,457
Other intangible assets
Gaming licenses	48,100
Customer relationships	2,300
Operating lease right-of-use assets	196,212
Total assets	$	325,614
Accounts payable, accrued expenses, and other current liabilities	$	9,511
Operating lease liabilities	196,212
Total liabilities	205,723
Net assets acquired	$	119,891

(1)

The goodwill has been assigned to our South segment. The entire $39.5 million goodwill amount is deductible for tax purposes.

Actual and pro forma financial results

	For the three months ended March 31,
(in thousands)	2019		2018
Revenues	$	1,282,571	$	1,323,247
Net income attributable to Penn National Gaming, Inc.	$	43,426	$	47,144

The following table includes the financial results of the Margaritaville Resort Casino since the acquisition date which is included within our unaudited Condensed Consolidated Statement of Operations for the three months ended March 31, 2019:

(in thousands)	Period from January 1, 2019 through March 31, 2019
Revenues	$	41,499
Net income	$	4,961

Adjustments to purchase price allocation

During the three months ended March 31, 2019, we made the following adjustments to the preliminary purchase price allocation:

(in thousands)	Increase/(Decrease)
Property and equipment - Pinnacle Master Lease (1)	$	(29,200	)
Goodwill (2)	11,617
Other intangible assets
Gaming licenses	21,600
Total assets	$	4,017
Long-term financing obligation, including current portion (3)	$	5,517
Deferred tax liabilities	(1,500		)
Total liabilities	4,017
Net assets acquired	$	—

(1) Includes buildings, boats, vessels, barges, and implied land and land use rights. Land use rights represent the intangible value of the Company’s ability to utilize and access land associated with long term ground lease agreements that give the Company the exclusive rights to operate the casino gaming facilities associated with such agreements.

(2) See Note 7, “Goodwill and Other Intangible Assets,” for details on the impact to each reportable segment.

(3)

Long-term financing obligation, including current portion represents the financing obligation associated with Pinnacle Master Lease, as amended.