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Segment Information
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
We have aggregated our operating segments into four reportable segments based on the similar characteristics of the operating segments within the regions in which they operate: Northeast, South, West and Midwest. The Other category is included in the following tables in order to reconcile the segment information to the consolidated information.
The Company utilizes Adjusted EBITDAR (as defined below) as its measure of segment profit or loss. The following table highlights our revenues and Adjusted EBITDAR for each reportable segment and reconciles Adjusted EBITDAR on a consolidated basis to net income (loss).
 
For the three months ended March 31,
(in millions)
2020
 
2019
Revenues:
 
 
 
Northeast segment
$
520.7

 
$
550.6

South segment
223.3

 
292.0

West segment
126.6

 
158.6

Midwest segment
228.1

 
271.2

Other (1)
20.3

 
10.2

Intersegment eliminations (2)
(2.9
)
 
—

Total
$
1,116.1

 
$
1,282.6

 
 
 
 
Adjusted EBITDAR (3):
 
 
 
Northeast segment
$
124.5

 
$
164.8

South segment
52.6

 
97.8

West segment
24.6

 
49.9

Midwest segment
69.5

 
99.2

Other (1)
(18.9
)
 
(20.3
)
Total (3)
252.3

 
391.4

 
 
 
 
Other operating benefits (costs) and other income (expenses):
 
 
 
Rent expense associated with triple net operating leases (4)
(97.5
)
 
(84.7
)
Stock-based compensation
(6.0
)
 
(3.4
)
Cash-settled stock-based awards variance
8.9

 
(0.4
)
Loss on disposal of assets
(0.6
)
 
(0.5
)
Contingent purchase price
2.2

 
(4.7
)
Pre-opening and acquisition costs
(3.2
)
 
(4.4
)
Depreciation and amortization
(95.7
)
 
(104.1
)
Impairment losses
(616.1
)
 
—

Insurance recoveries, net of deductible charges
0.1

 
—

Non-operating items of joint venture (5)
(0.9
)
 
(1.1
)
Interest expense, net
(129.8
)
 
(132.3
)
Other
(21.8
)
 
—

Income (loss) before income taxes
(708.1
)
 
55.8

Income tax benefit (expense)
99.5

 
(14.8
)
Net income (loss)
$
(608.6
)
 
$
41.0

(1)
The Other category consists of the Company’s stand-alone racing operations, namely Sanford-Orlando Kennel Club and the Company’s JV interests in Sam Houston Race Park, Valley Race Park, and Freehold Raceway. The Other category also includes Penn Interactive, which operates social gaming, our internally-branded retail sportsbooks, and iGaming; our management contract for Retama Park Racetrack; and HPT. Expenses incurred for corporate and shared services activities that are directly attributable to a property or are otherwise incurred to support a property are allocated to each property. The Other category also includes corporate overhead costs, which consist of certain expenses, such as: payroll, professional fees, travel expenses and other general and administrative expenses that do not directly relate to or have not otherwise been allocated to a property.
(2)
Represents the elimination of intersegment revenues associated with Penn Interactive and HPT.
(3)
We define Adjusted EBITDAR as earnings before interest expense, net; income taxes; depreciation and amortization; rent expense associated with triple net operating leases (see footnote (4) below); stock-based compensation; debt extinguishment and financing charges; impairment losses; insurance recoveries and deductible charges; changes in the estimated fair value of our contingent purchase price obligations; gain or loss on disposal of assets; the difference between budget and actual expense for cash-settled stock-based awards; pre-opening and acquisition costs; and other income or expenses. Adjusted EBITDAR is also inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (such as depreciation and amortization) added back for our Kansas Entertainment JV and is inclusive of rent expense associated with triple net operating leases (which is a normal, recurring cash operating expense necessary to operate our business).
(4)
The Company’s triple net operating leases include certain components of the Master Leases (primarily land), the Meadows Lease, the Margaritaville Lease, and the Greektown Lease.
(5)
Consists principally of depreciation and amortization associated with the operations of Hollywood Casino at Kansas Speedway.
 
For the three months ended March 31,
(in millions)
2020
 
2019
Capital expenditures:
 
 
 
Northeast segment
$
30.3

 
$
12.7

South segment
4.0

 
8.9

West segment
2.5

 
7.0

Midwest segment
3.4

 
7.0

Other
2.6

 
2.1

Total capital expenditures
$
42.8

 
$
37.7

(in millions)
Northeast
 
South
 
West
 
Midwest
 
Other (1)
 
Total
As of March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Investment in and advances to unconsolidated affiliates (2)
$
0.1

 
$
—

 
$
—

 
$
87.0

 
$
177.6

 
$
264.7

Total assets
$
1,849.8

 
$
1,095.0

 
$
656.8

 
$
1,120.8

 
$
9,216.0

 
$
13,938.4

 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 

Investment in and advances to unconsolidated affiliates
$
0.1

 
$
—

 
$
—

 
$
90.9

 
$
37.3

 
$
128.3

Total assets
$
2,273.7

 
$
1,397.0

 
$
752.1

 
$
1,412.2

 
$
8,359.5

 
$
14,194.5

(1)
The real estate assets subject to the Master Leases, which are classified as either property and equipment, operating lease ROU assets, or finance lease ROU assets, are included within the Other category.
(2)
Our investment in Barstool Sports is included within the Other category.