Leases (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Future Minimum Lease Commitments, Operating Leases

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of September 30, 2020:


(in millions)	Operating Leases		Finance Leases		Financing Obligations
Years ending December 31,
2020 (excluding the nine months ended September 30, 2020)	$	105.4	$	5.4	$	91.8
2021	412.7		21.7		367.3
2022	404.3		21.6		367.3
2023	398.7		20.8		367.3
2024	382.4		16.7		367.3
Thereafter	8,158.4		393.5		9,270.6
Total lease payments	9,861.9		479.7		10,831.6
Less: Imputed interest	(5,360.3)		(258.6)		(6,720.8)
Present value of future lease payments	4,501.6		221.1		4,110.8
Less: Current portion of lease obligations	(120.4)		(6.8)		(35.3)
Long-term portion of lease obligations	$	4,381.2	$	214.3	$	4,075.5

Schedule of Future Minimum Lease Commitments, Finance Leases

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of September 30, 2020:


(in millions)	Operating Leases		Finance Leases		Financing Obligations
Years ending December 31,
2020 (excluding the nine months ended September 30, 2020)	$	105.4	$	5.4	$	91.8
2021	412.7		21.7		367.3
2022	404.3		21.6		367.3
2023	398.7		20.8		367.3
2024	382.4		16.7		367.3
Thereafter	8,158.4		393.5		9,270.6
Total lease payments	9,861.9		479.7		10,831.6
Less: Imputed interest	(5,360.3)		(258.6)		(6,720.8)
Present value of future lease payments	4,501.6		221.1		4,110.8
Less: Current portion of lease obligations	(120.4)		(6.8)		(35.3)
Long-term portion of lease obligations	$	4,381.2	$	214.3	$	4,075.5

Schedule of Future Minimum Lease Commitments, Financing Obligations

The following is a maturity analysis of our operating leases, finance leases and financing obligations as of September 30, 2020:


(in millions)	Operating Leases		Finance Leases		Financing Obligations
Years ending December 31,
2020 (excluding the nine months ended September 30, 2020)	$	105.4	$	5.4	$	91.8
2021	412.7		21.7		367.3
2022	404.3		21.6		367.3
2023	398.7		20.8		367.3
2024	382.4		16.7		367.3
Thereafter	8,158.4		393.5		9,270.6
Total lease payments	9,861.9		479.7		10,831.6
Less: Imputed interest	(5,360.3)		(258.6)		(6,720.8)
Present value of future lease payments	4,501.6		221.1		4,110.8
Less: Current portion of lease obligations	(120.4)		(6.8)		(35.3)
Long-term portion of lease obligations	$	4,381.2	$	214.3	$	4,075.5

Schedule of Other Information and Supplemental Cash Flow Information Related to Leases

Total payments made under the Triple Net Leases, inclusive of rent credits utilized, were as follows:


	For the three months ended September 30,				For the nine months ended September 30,
(in millions)	2020		2019		2020		2019
Penn Master Lease (1)	$	120.3	$	114.0	$	343.4	$	342.9
Pinnacle Master Lease (1)	81.3		82.3		245.6		245.6
Meadows Lease (1)	6.7		6.6		20.2		19.7
Margaritaville Lease	5.9		5.8		17.6		17.3
Greektown Lease	13.9		13.9		41.7		19.9
Total (2)	$	228.1	$	222.6	$	668.5	$	645.4

(1)During the three and nine months ended September 30, 2020, we utilized rent credits to pay $83.0 million, $54.2 million and $4.5 million and $155.1 million, $108.4 million, and $9.0 million of rent under the Penn Master Lease, Pinnacle Master Lease and Meadows Lease, respectively.

(2)Rent payable under the Tropicana Lease is nominal. Therefore, it has been excluded from the table above.

The components of lease expense were as follows:


	Location on unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	For the three months ended September 30,				For the nine months ended September 30,
(in millions)		2020		2019		2020		2019
Operating Lease Costs
Rent expense associated with triple net operating leases (1)	General and administrative	$	109.0	$	96.3	$	310.3	$	271.0
Operating lease cost (2)	Primarily General and administrative	3.9		4.2		11.9		13.2
Short-term lease cost	Primarily Gaming expense	10.3		14.4		26.5		42.9
Variable lease cost (2)	Primarily Gaming expense	0.8		1.0		1.8		2.8
Total		$	124.0	$	115.9	$	350.5	$	329.9

Finance Lease Costs
Interest on lease liabilities (3)	Interest expense, net	$	3.8	$	3.8	$	11.5	$	11.5
Amortization of ROU assets (3)	Depreciation and amortization	2.0		2.0		6.0		5.9
Total		$	5.8	$	5.8	$	17.5	$	17.4

Financing Obligation Costs
Interest on financing obligations (4)	Interest expense, net	$	103.7	$	97.6	$	300.2	$	293.6

(1)Pertains to the operating lease components contained within the Master Leases (primarily land), the Meadows Lease, the Margaritaville Lease, the Greektown Lease, and the Tropicana Lease, inclusive of the variable expense associated with Columbus and Toledo for the operating lease components (the land), which was $4.8 million and $9.5 million for the three and nine months ended September 30, 2020, respectively, pertaining to Columbus, and $2.3 million and $15.4 million for the three and nine months ended September 30, 2019, respectively, pertaining to Columbus and Toledo.

(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), which was $5.0 million and $10.6 million for the three and nine months ended September 30, 2020, respectively, pertaining to Columbus, and $2.1 million and $14.1 million for the three and nine months ended September 30, 2019, respectively, pertaining to Columbus and Toledo.