Hurricane Laura

9 Months Ended

Sep. 30, 2023

Unusual or Infrequent Items, or Both [Abstract]

On August 27, 2020, Hurricane Laura made landfall in Lake Charles, Louisiana, which caused significant damage to our L’Auberge Lake Charles property, which closed for approximately two weeks. The Company maintains insurance, subject to certain deductibles and coinsurance, that covers business interruption, including lost profits, and covers the repair or replacement of assets that suffered losses.

The Company recorded a receivable relating to our estimate of repairs and maintenance costs which have been incurred and property and equipment which have been written off, and for which we deem the recovery of such costs and property and equipment from our insurers to be probable. The insurance recovery receivable was included in “Accounts Receivable, net” within the unaudited Consolidated Balance Sheets. As we deemed it probable that the proceeds to be recovered from our insurers would exceed the total of our insurance recovery recorded and our insurers’ deductible and coinsurance, we did not record any loss associated with the impact of this natural disaster. Timing differences exist between the recognition of (i) impairment losses and capital expenditures made to repair or restore the assets and (ii) the receipt of insurance proceeds within the unaudited Consolidated Financial Statements.

During the three months ended September 30, 2023 and 2022, we received $0.3 million and $1.9 million of insurance claim proceeds related to property damage, respectively, which resulted in a gain of $0.3 million and $1.9 million, respectively. During the nine months ended September 30, 2023 and 2022, we received $13.9 million and $39.4 million of insurance claim proceeds related to property damage, respectively, which resulted in a gain of $13.9 million and $10.7 million, respectively. The property damage proceeds are included in “Other” expenses within the unaudited Consolidated Statements of Operations.

Additionally, during the three and nine months ended September 30, 2023, we received $14.0 million in business interruption insurance proceeds, which are included in “General and administrative” expenses within the unaudited Consolidated Statements of Operations.

Subsequent to September 30, 2023, the Company received its final insurance payment related to business interruption proceeds totaling $5.6 million.

The following table summarizes the financial impact of Hurricane Laura related matters:


	Life to date through
(in millions)	September 30, 2023		December 31, 2022
Insurance proceeds related to property damage received through the end of the period	$	100.8	$	86.9
Insurance proceeds related to business interruption received through the end of the period	$	14.0	$	—
Deductible	$	15.0	$	15.0
Coinsurance	$	2.5	$	2.5
Clean-up, restoration, and other costs	$	52.8	$	52.8
Fixed asset write-off	$	23.2	$	23.2
Inventory write-off	$	0.2	$	0.2