XML 47 R36.htm IDEA: XBRL DOCUMENT v3.20.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Schedule of Segment Information For financial reporting purposes, we aggregate our operating segments into the following four reportable segments:
LocationReal Estate Assets Lease or Ownership Structure
Northeast segment
Ameristar East ChicagoEast Chicago, IndianaPinnacle Master Lease
Greektown Casino-HotelDetroit, MichiganGreektown Lease
Hollywood Casino BangorBangor, MainePenn Master Lease
Hollywood Casino at Charles Town RacesCharles Town, West VirginiaPenn Master Lease
Hollywood Casino ColumbusColumbus, OhioPenn Master Lease
Hollywood Casino LawrenceburgLawrenceburg, IndianaPenn Master Lease
Hollywood Casino at Penn National Race CourseGrantville, PennsylvaniaPenn Master Lease
Hollywood Casino ToledoToledo, OhioPenn Master Lease
Hollywood Gaming at Dayton RacewayDayton, OhioPenn Master Lease
Hollywood Gaming at Mahoning Valley Race CourseYoungstown, OhioPenn Master Lease
Marquee by Penn (1)
PennsylvaniaN/A
Meadows Racetrack and CasinoWashington, PennsylvaniaMeadows Lease
Plainridge Park CasinoPlainville, MassachusettsPinnacle Master Lease
South segment (2)
1st Jackpot Casino
Tunica, MississippiPenn Master Lease
Ameristar VicksburgVicksburg, MississippiPinnacle Master Lease
Boomtown BiloxiBiloxi, MississippiPenn Master Lease
Boomtown Bossier CityBossier City, LouisianaPinnacle Master Lease
Boomtown New OrleansNew Orleans, LouisianaPinnacle Master Lease
Hollywood Casino Gulf CoastBay St. Louis, MississippiPenn Master Lease
Hollywood Casino TunicaTunica, MississippiPenn Master Lease
L’Auberge Baton RougeBaton Rouge, LouisianaPinnacle Master Lease
L’Auberge Lake CharlesLake Charles, LouisianaPinnacle Master Lease
Margaritaville Resort CasinoBossier City, LouisianaMargaritaville Lease
West segment
Ameristar Black HawkBlack Hawk, ColoradoPinnacle Master Lease
Cactus Petes and HorseshuJackpot, NevadaPinnacle Master Lease
M ResortHenderson, NevadaPenn Master Lease
Tropicana Las VegasLas Vegas, NevadaTropicana Lease
Zia Park CasinoHobbs, New MexicoPenn Master Lease
Midwest segment
Ameristar Council BluffsCouncil Bluffs, IowaPinnacle Master Lease
Argosy Casino Alton (3)
Alton, IllinoisPenn Master Lease
Argosy Casino RiversideRiverside, MissouriPenn Master Lease
Hollywood Casino AuroraAurora, IllinoisPenn Master Lease
Hollywood Casino JolietJoliet, IllinoisPenn Master Lease
Hollywood Casino at Kansas Speedway (4)
Kansas City, KansasOwned - JV
Hollywood Casino St. LouisMaryland Heights, MissouriPenn Master Lease
Prairie State Gaming (1)
IllinoisN/A
River City CasinoSt. Louis, MissouriPinnacle 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)The riverboat is owned by us and not subject to the Penn Master Lease.
(4)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 June 30,For the six months ended June 30,
(in millions)2020201920202019
Revenues:  
Northeast segment$102.7  $599.1  $623.4  $1,149.7  
South segment121.5  282.2  344.8  574.1  
West segment17.7  164.2  144.3  322.9  
Midwest segment36.0  268.2  264.1  539.5  
Other (1)
27.6  9.4  47.9  19.5  
Intersegment eliminations (2)
—  —  (2.9) —  
Total$305.5  $1,323.1  $1,421.6  $2,605.7  
Adjusted EBITDAR (3):
Northeast segment$(3.6) $186.2  $120.9  $351.0  
South segment44.4  92.8  97.0  190.6  
West segment(3.0) 50.5  21.6  100.4  
Midwest segment (4.6) 97.8  64.9  197.0  
Other (1)
(8.7) (20.8) (27.6) (41.1) 
Total (3)
24.5  406.5  276.8  797.9  
Other operating benefits (costs) and other income (expenses):
Rent expense associated with triple net operating leases (4)
(103.8) (90.0) (201.3) (174.7) 
Stock-based compensation(2.9) (3.3) (8.9) (6.7) 
Cash-settled stock-based awards variance(16.1) 3.4  (7.2) 3.0  
Gain (loss) on disposal of assets28.5  (0.4) 27.9  (0.9) 
Contingent purchase price(0.8) (1.0) 1.4  (5.8) 
Pre-opening and acquisition costs(3.5) (3.7) (6.7) (8.1) 
Depreciation and amortization(91.9) (106.0) (187.6) (210.1) 
Impairment losses—  —  (616.1) —  
Insurance recoveries, net of deductible charges—  —  0.1  —  
Non-operating items of equity method investments (5)
(1.1) (0.9) (2.0) (1.9) 
Interest expense, net(135.0) (134.7) (264.8) (267.0) 
Other29.3  —  7.5  —  
Income (loss) before income taxes(272.8) 69.9  (980.9) 125.7  
Income tax benefit (expense)58.4  (18.5) 157.9  (33.4) 
Net income (loss)$(214.4) $51.4  $(823.0) $92.3  
(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. In
addition, the Other category includes our proportionate share of the Adjusted EBITDAR of Barstool Sports (as determined and discussed in footnotes (3) and (5) below).
(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 (see footnote (5) below) added back for Barstool Sports and our Kansas Entertainment JV.
(4)The Company’s triple net operating leases include certain components of the Master Leases (primarily land), the Meadows Lease, the Margaritaville Lease, the Greektown Lease, and the Tropicana Lease.
(5)Consists principally of interest expense, net; income taxes; depreciation and amortization; and stock-based compensation expense associated with Barstool Sports and our Kansas Entertainment JV.
 For the three months ended June 30,For the six months ended June 30,
(in millions)2020201920202019
Capital expenditures:  
Northeast segment$21.7  $31.8  $52.0  $44.4  
South segment3.8  7.7  7.8  16.6  
West segment1.6  7.1  4.1  14.1  
Midwest segment1.3  9.3  4.9  16.4  
Other2.5  1.5  4.9  3.5  
Total capital expenditures$30.9  $57.4  $73.7  $95.0  

(in millions)NortheastSouthWestMidwest
Other (1)
Total
As of June 30, 2020
Investment in and advances to unconsolidated affiliates (2)
$0.1  $—  $—  $87.3  $176.6  $264.0  
Total assets$1,928.5  $1,142.5  $382.7  $1,171.8  $9,696.0  $14,321.5  
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.