Segment Information

12 Months Ended

Dec. 31, 2015

Segment Information

Segment Information

16.   Segment Information

        The following tables (in thousands) present certain information with respect to the Company's segments. Intersegment revenues between the Company's segments were not material in any of the periods presented below. The income (loss) from operations by segment presented below does not include allocations for corporate overhead costs or expenses associated with utilizing property subject to the Master Lease.

Year Ended December 31, 2015	East/Midwest			West		Southern Plains		Other(1)			Total
Income (loss) from operations	$	372,698		$	53,438	$	230,337	$	(188,627	)	$	467,846
Charge for stock compensation		—			—		—		8,223			8,223
Impairment losses		40,042			—		—		—			40,042
Depreciation and amortization		101,359			14,530		43,120		100,452			259,461
Plainridge contingent purchase price		(5,374	)		—		—		—			(5,374	)
(Gain) loss on disposal of assets		(295	)		510		735		336			1,286
Income (loss) from unconsolidated affiliates		—			—		15,289		(801	)		14,488
Non-operating items for Kansas JV		—			—		10,377		—			10,377
Adjusted EBITDA	$	508,430		$	68,478	$	299,858	$	(80,417	)	$	796,349

Year ended December 31, 2014	East/Midwest			West		Southern Plains			Other(1)			Total
Income (loss) from operations	$	332,869		$	56,928	$	46,395		$	(179,004	)	$	257,188
Charge for stock compensation		—			—		—			10,666			10,666
Impairment losses		4,560			1,420		153,904			—			159,884
Insurance recoveries		—			—		(5,674	)		—			(5,674	)
Depreciation and amortization		101,891			7,411		58,598			98,842			266,742
Plainridge contingent purchase price		689			—		—			—			689
(Gain) loss on disposal of assets		(75	)		211		624			(22	)		738
Income (loss) from unconsolidated affiliates		—			—		10,720			(2,771	)		7,949
Non-operating items for Kansas JV		—			—		11,809			—			11,809
Adjusted EBITDA	$	439,934		$	65,970	$	276,376		$	(72,289	)	$	709,991

Year ended December 31, 2013	East/Midwest			West		Southern Plains			Other(1)			Total
(Loss) income from operations	$	(57,351	)	$	45,464	$	(186,846	)	$	(225,135	)	$	(423,868	)
Charge for stock compensation		—			—		—			22,809			22,809
Impairment losses		416,380			1,812		341,683			38,430			798,305
Insurance deductible charges, net of recoveries		—			—		108			—			108
Depreciation and amortization		142,442			11,883		108,201			40,878			303,404
Loss (gain) on disposal of assets		774			2,365		853			(310	)		3,682
Income (loss) from unconsolidated affiliates		—			—		10,735			(1,078	)		9,657
Non-operating items for Kansas JV		—			—		11,595			—			11,595
Adjusted EBITDA from discontinued operations		15,334			—		20,040			—			35,374
Adjusted EBITDA	$	517,579		$	61,524	$	306,369		$	(124,406	)	$	761,066

	East/Midwest		West		Southern Plains		Other(1)		Total
	(in thousands)
Year ended December 31, 2015
Net revenues	$	1,682,440	$	285,933	$	849,049	$	20,936	$	2,838,358
Capital expenditures		159,352		8,991		26,554		4,343		199,240
Year ended December 31, 2014
Net revenues	$	1,467,380	$	241,410	$	857,447	$	24,290	$	2,590,527
Capital expenditures		144,320		28,251		49,607		5,967		228,145
Year ended December 31, 2013
Net revenues	$	1,575,053	$	240,083	$	930,762	$	31,988	$	2,777,886
Capital expenditures		105,354		9,802		76,319		5,125		196,600
Balance sheet at December 31, 2015
Total assets		1,036,940		842,712		1,098,306		2,160,794		5,138,752
Investment in and advances to unconsolidated affiliates		84		—		103,608		64,457		168,149
Goodwill and other intangible assets, net		387,474		158,339		753,345		4,226		1,303,384
Balance sheet at December 31, 2014
Total assets		1,007,162		287,551		1,076,290		2,253,548		4,624,551
Investment in and advances to unconsolidated affiliates		94		—		115,469		63,988		179,551
Goodwill and other intangible assets, net		427,335		143,242		718,982		4,078		1,293,637

(1)           Includes depreciation expense associated with the real property assets under the Master Lease with GLPI. In addition, total assets include these assets. The interest expense associated with the financing obligation is reflected in the other category. Net revenues and income (loss) from unconsolidated affiliates relate to the Company's stand-alone racing operations, namely Rosecroft Raceway, Sanford Orlando Kennel Club and the Company's Texas and New Jersey joint ventures (see Note 7 to the consolidated financial statements) which do not have gaming operations. It also previously included the Company's Bullwhackers property, which was sold in July 2013.

        Management uses adjusted EBITDA as the primary measure of the operating performance of its segments, including the evaluation of operating personnel and is especially relevant in evaluating large, long lived casino projects because they provide a perspective on the current effects of operating decisions separated from the substantial non-operational depreciation charges and financing costs of such projects. The Company defines adjusted EBITDA as earnings before interest, taxes, stock compensation, debt extinguishment charges, impairment charges, insurance recoveries and deductible charges, depreciation and amortization, changes in the estimated fair value of contingent purchase price to the previous owners of Plainridge Racecourse, gain or loss on disposal of assets, and other income or expenses. Adjusted EBITDA is also inclusive of results from discontinued operations, income or loss from unconsolidated affiliates, with our share of non-operating items (such as depreciation and amortization) added back for our joint venture in Kansas Entertainment. Adjusted EBITDA should not be construed as alternatives to operating income, as indicators of the Company's operating performance, as alternatives to cash flows from operating activities, as measures of liquidity, or as any other measures of performance determined in accordance with GAAP. The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes and debt principal repayments, which are not reflected in adjusted EBITDA.