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Leases (Tables)

3 Months Ended

Mar. 31, 2020

Information related to lease term and discount rate was as follows:



	March 31, 2020		December 31, 2019
Weighted-Average Remaining Lease Term
Operating leases	27.4 years		27.6 years
Finance leases	28.3 years		28.6 years
Financing obligations	30.1 years		30.4 years

Weighted-Average Discount Rate
Operating leases	6.7	%	6.7	%
Finance leases	6.8	%	6.8	%
Financing obligations	8.1	%	8.1	%

The components of lease expense were as follows:



	For the three months ended March 31, 2020
	Classification
(in millions)	Gaming Expense		Food, Beverage, Hotel and Other Expense		General and Administrative		Interest Expense, net		Depreciation and Amortization		Total
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases ⁽¹⁾	$	—	$	—	$	97.5	$	—	$	—	$	97.5
Operating lease cost⁽²⁾	0.1		0.1		4.1		—		—		4.3
Short-term lease cost	11.7		0.2		0.2		—		—		12.1
Variable lease cost⁽²⁾	0.6		—		0.2		—		—		0.8
Total	$	12.4	$	0.3	$	102.0	$	—	$	—	$	114.7

Finance Lease Costs
Interest expense ⁽³⁾	$	—	$	—	$	—	$	3.9	$	—	$	3.9
Amortization expense ⁽³⁾	—		—		—		—		2.0		2.0
Total	$	—	$	—	$	—	$	3.9	$	2.0	$	5.9

Financing Obligation Costs
Interest expense ⁽⁴⁾	$	—	$	—	$	—	$	97.4	$	—	$	97.4



	For the three months ended March 31, 2019
	Classification
(in millions)	Gaming Expense		Food, Beverage, Hotel and Other Expense		General and Administrative		Interest Expense, net		Depreciation and Amortization		Total
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases ⁽¹⁾	$	—	$	—	$	84.7	$	—	$	—	$	84.7
Operating lease cost⁽²⁾	0.1		0.2		4.1		—		—		4.4
Short-term lease cost	12.9		0.2		0.6		—		—		13.7
Variable lease cost⁽²⁾	1.3		—		0.3		—		—		1.6
Total	$	14.3	$	0.4	$	89.7	$	—	$	—	$	104.4

Finance Lease Costs
Interest expense ⁽³⁾	$	—	$	—	$	—	$	3.8	$	—	$	3.8
Amortization expense ⁽³⁾	—		—		—		—		2.0		2.0
Total	$	—	$	—	$	—	$	3.8	$	2.0	$	5.8

Financing Obligation Costs
Interest expense ⁽⁴⁾	$	—	$	—	$	—	$	97.7	$	—	$	97.7


(1)	Pertains to the operating lease components contained within the Master Leases (primarily land), the Meadows Lease, the Margaritaville Lease and the Greektown Lease, inclusive of the variable expense associated with Columbus and Toledo for the operating lease components (the land) (see table above).


(2)	Excludes the operating lease costs and variable lease costs pertaining to our triple net leases with our REIT landlords classified as operating leases, discussed in footnote (1) above.


(3)	Primarily pertains to the Dayton and Mahoning Valley finance leases.


(4)	Pertains to the components contained within the Master Leases (primarily buildings) determined to be financing obligations, inclusive of the variable expense associated with Columbus and Toledo for the finance lease components (the buildings) (see table above).

Total payments made under the Triple Net Leases were as follows:



	For the three months ended March 31,
(in millions)	2020		2019
Penn Master Lease	$	114.8	$	114.4
Pinnacle Master Lease	82.5		81.3
Meadows Lease	6.7		6.5
Margaritaville Lease	5.9		5.7
Greektown Lease	13.9		—
Total	$	223.8	$	207.9

Supplemental cash flow information related to leases was as follows:



	For the three months ended March 31,
(in millions)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	3.9	$	3.8
Operating cash flows from operating leases	$	108.2	$	90.6
Financing cash flows from finance leases	$	1.6	$	1.6

Total monthly variable expenses were as follows:



	For the three months ended March 31,
(in millions)	2020		2019
Variable expenses included in “General and administrative”	$	3.1	$	6.8
Variable expenses included in “Interest expense, net”	3.4		6.3
Total variable expenses	$	6.5	$	13.1

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of March 31, 2020:



(in millions)	Operating Leases			Finance Leases			Financing Obligations
Years ending December 31,
2020 (excluding the three months ended March 31, 2020)	$	316.4		$	16.3		$	277.3
2021	404.3			21.7			367.3
2022	401.2			21.6			367.3
2023	398.1			20.8			367.3
2024	381.6			16.7			367.3
Thereafter	8,156.4			393.5			9,270.6
Total lease payments	10,058.0			490.6			11,017.1
Less: Imputed interest	(5,510.6		)	(266.3		)	(6,887.9		)
Present value of future lease payments	4,547.4			224.3			4,129.2
Less: Current portion of lease obligations	(119.1		)	(6.6		)	(35.7		)
Long-term portion of lease obligations	$	4,428.3		$	217.7		$	4,093.5

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of March 31, 2020:



(in millions)	Operating Leases			Finance Leases			Financing Obligations
Years ending December 31,
2020 (excluding the three months ended March 31, 2020)	$	316.4		$	16.3		$	277.3
2021	404.3			21.7			367.3
2022	401.2			21.6			367.3
2023	398.1			20.8			367.3
2024	381.6			16.7			367.3
Thereafter	8,156.4			393.5			9,270.6
Total lease payments	10,058.0			490.6			11,017.1
Less: Imputed interest	(5,510.6		)	(266.3		)	(6,887.9		)
Present value of future lease payments	4,547.4			224.3			4,129.2
Less: Current portion of lease obligations	(119.1		)	(6.6		)	(35.7		)
Long-term portion of lease obligations	$	4,428.3		$	217.7		$	4,093.5

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of March 31, 2020:



(in millions)	Operating Leases			Finance Leases			Financing Obligations
Years ending December 31,
2020 (excluding the three months ended March 31, 2020)	$	316.4		$	16.3		$	277.3
2021	404.3			21.7			367.3
2022	401.2			21.6			367.3
2023	398.1			20.8			367.3
2024	381.6			16.7			367.3
Thereafter	8,156.4			393.5			9,270.6
Total lease payments	10,058.0			490.6			11,017.1
Less: Imputed interest	(5,510.6		)	(266.3		)	(6,887.9		)
Present value of future lease payments	4,547.4			224.3			4,129.2
Less: Current portion of lease obligations	(119.1		)	(6.6		)	(35.7		)
Long-term portion of lease obligations	$	4,428.3		$	217.7		$	4,093.5