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Segment Information (Tables)
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Schedule of Segment Information For financial reporting purposes, we aggregate our operating segments into the following four reportable segments:
 
Location
 
Real Estate Assets Lease or Ownership Structure
Northeast segment
 
 
 
Ameristar East Chicago
East Chicago, Indiana
 
Pinnacle Master Lease
Greektown Casino-Hotel
Detroit, Michigan
 
Greektown Lease
Hollywood Casino Bangor
Bangor, Maine
 
Penn Master Lease
Hollywood Casino at Charles Town Races
Charles Town, West Virginia
 
Penn Master Lease
Hollywood Casino Columbus
Columbus, Ohio
 
Penn Master Lease
Hollywood Casino Lawrenceburg
Lawrenceburg, Indiana
 
Penn Master Lease
Hollywood Casino at Penn National Race Course
Grantville, Pennsylvania
 
Penn Master Lease
Hollywood Casino Toledo
Toledo, Ohio
 
Penn Master Lease
Hollywood Gaming at Dayton Raceway
Dayton, Ohio
 
Penn Master Lease
Hollywood Gaming at Mahoning Valley Race Course
Youngstown, Ohio
 
Penn Master Lease
Marquee by Penn (1)
Pennsylvania
 
N/A
Meadows Racetrack and Casino
Washington, Pennsylvania
 
Meadows Lease
Plainridge Park Casino
Plainville, Massachusetts
 
Pinnacle Master Lease
 
 
 
 
South segment (2)
 
 
 
1st Jackpot Casino
Tunica, Mississippi
 
Penn Master Lease
Ameristar Vicksburg
Vicksburg, Mississippi
 
Pinnacle Master Lease
Boomtown Biloxi
Biloxi, Mississippi
 
Penn Master Lease
Boomtown Bossier City
Bossier City, Louisiana
 
Pinnacle Master Lease
Boomtown New Orleans
New Orleans, Louisiana
 
Pinnacle Master Lease
Hollywood Casino Gulf Coast
Bay St. Louis, Mississippi
 
Penn Master Lease
Hollywood Casino Tunica
Tunica, Mississippi
 
Penn Master Lease
L’Auberge Baton Rouge
Baton Rouge, Louisiana
 
Pinnacle Master Lease
L’Auberge Lake Charles
Lake Charles, Louisiana
 
Pinnacle Master Lease
Margaritaville Resort Casino
Bossier City, Louisiana
 
Margaritaville Lease
 
 
 
 
West segment
 
 
 
Ameristar Black Hawk
Black Hawk, Colorado
 
Pinnacle Master Lease
Cactus Petes and Horseshu
Jackpot, Nevada
 
Pinnacle Master Lease
M Resort
Henderson, Nevada
 
Penn Master Lease
Tropicana Las Vegas
Las Vegas, Nevada
 
Owned (3)
Zia Park Casino
Hobbs, New Mexico
 
Penn Master Lease
 
 
 
 
Midwest segment
 
 
 
Ameristar Council Bluffs
Council Bluffs, Iowa
 
Pinnacle Master Lease
Argosy Casino Alton (4)
Alton, Illinois
 
Penn Master Lease
Argosy Casino Riverside
Riverside, Missouri
 
Penn Master Lease
Hollywood Casino Aurora
Aurora, Illinois
 
Penn Master Lease
Hollywood Casino Joliet
Joliet, Illinois
 
Penn Master Lease
Hollywood Casino at Kansas Speedway (5)
Kansas City, Kansas
 
Owned - JV
Hollywood Casino St. Louis
Maryland Heights, Missouri
 
Penn Master Lease
Prairie State Gaming (1)
Illinois
 
N/A
River City Casino
St. Louis, Missouri
 
Pinnacle Master Lease
(1)
VGT route operations
(2)
Resorts Casino Tunica ceased operations on June 30, 2019, but remains subject to the Penn Master Lease.
(3)
As noted in Note 18, “Subsequent Events,” in April 2020, we entered into a sale-leaseback transaction with GLPI for the real estate assets used in the operations of Tropicana.
(4)
The riverboat is owned by us and not subject to the Penn Master Lease.
(5)
Pursuant to a joint venture (“JV”) with International Speedway Corporation (“International Speedway”) and includes the Company’s 50% investment in Kansas Entertainment, LLC (“Kansas Entertainment”), which owns Hollywood Casino at Kansas Speedway.
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.