Segment Information (Tables)

12 Months Ended

Dec. 31, 2021

For financial reporting purposes, we aggregate our operating properties into the following 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 Morgantown	Morgantown, Pennsylvania	Morgantown Lease (1)
Hollywood Casino at Penn National Race Course	Grantville, Pennsylvania	Penn Master Lease
Hollywood Casino Perryville	Perryville, Maryland	Perryville Lease
Hollywood Casino Toledo	Toledo, Ohio	Penn Master Lease
Hollywood Casino York	York, Pennsylvania	Operating Lease (not with REIT Landlord)
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 (2)	Pennsylvania	N/A
Hollywood Casino at Meadows Racetrack	Washington, Pennsylvania	Meadows Lease
Plainridge Park Casino	Plainville, Massachusetts	Pinnacle Master Lease

South segment
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	Tropicana Lease
Zia Park Casino	Hobbs, New Mexico	Penn Master Lease

Midwest segment
Ameristar Council Bluffs	Council Bluffs, Iowa	Pinnacle Master Lease
Argosy Casino Alton (3)	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 (4)	Kansas City, Kansas	Owned - joint venture
Hollywood Casino St. Louis	Maryland Heights, Missouri	Penn Master Lease
Prairie State Gaming (2)	Illinois	N/A
River City Casino	St. Louis, Missouri	Pinnacle Master Lease

(1)Upon termination of the Morgantown Lease, ownership of the constructed building and all tenant improvements will transfer from the Company to GLPI.

(2)VGT route operations

(3)The riverboat is owned by us and not subject to the Penn Master Lease.

(4)Pursuant to a joint venture with NASCAR 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).

The following tables present the Company’s segment information. As a result of the change in reportable segments described above, we have recast previously reported segment information to conform to the current presentation in the following tables:


	For the year ended December 31,
(in millions)	2021		2020		2019
Revenues:
Northeast segment	$	2,552.4	$	1,639.3	$	2,399.9
South segment	1,322.2		849.6		1,118.9
West segment	521.4		302.5		642.5
Midwest segment	1,102.7		681.4		1,094.5
Interactive segment	432.9		121.1		38.3
Other (1)	10.6		3.9		9.2
Intersegment eliminations (2)	(37.2)		(19.1)		(1.9)
Total	$	5,905.0	$	3,578.7	$	5,301.4

Adjusted EBITDAR (3):
Northeast segment	$	848.4	$	478.9	$	720.8
South segment	587.0		318.9		369.8
West segment	195.0		82.2		198.8
Midwest segment	500.1		258.3		403.6
Interactive segment	(35.4)		37.2		11.6
Other (1)	(100.7)		(80.7)		(99.4)

Total (3)	1,994.4		1,094.8		1,605.2

Other operating benefits (costs) and other income (expenses):
Rent expense associated with triple net operating leases (4)	(454.4)		(419.8)		(366.4)
Stock-based compensation	(35.1)		(14.5)		(14.9)
Cash-settled stock-based awards variance	(1.2)		(67.2)		(0.8)
Gain (loss) on disposal of assets	(1.1)		29.2		(5.5)
Contingent purchase price	(1.9)		1.1		(7.0)
Pre-opening expenses (5)	(5.4)		(11.8)		(22.3)
Depreciation and amortization	(344.5)		(366.7)		(414.2)
Impairment losses	—		(623.4)		(173.1)

Insurance recoveries, net of deductible charges	—		0.1		3.0
Non-operating items of equity method investments (6)	(7.7)		(4.7)		(3.7)
Interest expense, net	(561.7)		(543.2)		(534.2)
Loss on early extinguishment of debt	—		(1.2)		—
Other (5)(7)	(42.3)		93.1		20.0
Income (loss) before income taxes	539.1		(834.2)		86.1
Income tax benefit (expense)	(118.6)		165.1		(43.0)
Net income (loss)	$	420.5	$	(669.1)	$	43.1

(1)The Other category consists of the Company’s stand-alone racing operations, namely Sanford-Orlando Kennel Club, Sam Houston and Valley Race Parks (the remaining 50% was acquired by Penn National on August 1, 2021), the Company’s joint venture interests in Freehold Raceway; our management contract for Retama Park Racetrack and our live and televised poker tournament series that operates under the trade name, Heartland Poker Tour (“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)Primarily represents the elimination of intersegment revenues associated with our internally-branded retail sportsbooks, which are operated by Penn Interactive.

(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, net of 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 expenses (see footnote (5) below); and other. Adjusted EBITDAR is also inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (see footnote (6) below) added back for Barstool Sports and our Kansas Entertainment joint venture.

(4)The Company’s triple net operating leases include the operating lease components contained within our triple net master lease dated November 1, 2013 with GLPI and the triple net master lease assumed in connection with our acquisition of Pinnacle Entertainment, Inc. (primarily land), our individual triple net leases with GLPI for the real estate assets used in the operation of Tropicana Las Vegas Hotel and Casino and Hollywood Casino at Meadows Racetrack, and our individual triple net leases with VICI for the real estate assets used in the operations of Margaritaville Casino Resort and Greektown Casino-Hotel.

(5)During 2019, 2020 and during the first quarter of 2021, acquisition costs were included within pre-opening and acquisition costs. Beginning with the quarter ended June 30, 2021, acquisition costs are presented as part of other expenses.

(6)Consists principally of interest expense, net; income taxes; depreciation and amortization; and stock-based compensation expense associated with Barstool Sports and our Kansas Entertainment joint venture. We record our portion of Barstool Sports’ net income or loss, including adjustments to arrive at Adjusted EBITDAR, one quarter in arrears.

(7)Includes holding gains and losses on our equity securities, which are discussed in Note 19, “Fair Value Measurements.” Additionally, consists of non-recurring acquisition and transaction costs, finance transformation costs associated with the implementation of our new Enterprise Resource Management system and non-recurring restructuring charges (primarily severance) associated with a company-wide initiative, triggered by the COVID-19 pandemic, designed to (i) improve the operational effectiveness across our property portfolio; and (ii) improve the effectiveness and efficiency of our Corporate functional support area.


	For the year ended December 31,
(in millions)	2021		2020		2019
Capital expenditures:
Northeast segment	$	144.8	$	78.0	$	96.2
South segment	39.0		15.8		29.8
West segment	8.5		8.2		21.2
Midwest segment	19.8		15.1		32.7
Interactive segment	6.3		9.1		—
Other	25.7		10.8		10.7
Total capital expenditures	$	244.1	$	137.0	$	190.6


(in millions)	Northeast		South		West		Midwest		Interactive		Other (1)		Total
As of December 31, 2021
Investment in and advances to unconsolidated affiliates	$	0.1	$	—	$	—	$	83.8	$	164.4	$	6.8	$	255.1
Total assets	$	2,283.6	$	1,224.6	$	394.8	$	1,215.8	$	2,618.3	$	9,135.0	$	16,872.1

As of December 31, 2020
Investment in and advances to unconsolidated affiliates	$	0.1	$	—	$	—	$	85.2	$	149.3	$	32.2	$	266.8
Total assets	$	1,958.4	$	1,165.4	$	401.5	$	1,161.1	$	434.1	$	9,546.8	$	14,667.3

As of December 31, 2019
Investment in and advances to unconsolidated affiliates	$	0.1	$	—	$	—	$	90.9	$	1.9	$	35.4	$	128.3
Total assets	$	2,273.7	$	1,397.0	$	752.1	$	1,412.2	$	124.1	$	8,235.4	$	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.