Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information

Segment Information

10.  Segment Information

The Company has aggregated its properties into three reportable segments: (i) Midwest, (ii) East/West, and (iii) Southern Plains, which is consistent with how the Company’s Chief Operating Decision Maker reviews and assesses the Company’s financial performance.

The Midwest reportable segment consists of the following properties: Hollywood Casino Lawrenceburg, Hollywood Casino Aurora, Hollywood Casino Joliet, Argosy Casino Alton, and Hollywood Casino Toledo, which opened on May 29, 2012. It also includes the Company’s Casino Rama management service contract, Hollywood Casino Columbus, which is currently under construction and scheduled to open early in the fourth quarter of 2012, and the Mahoning Valley and Dayton Raceway projects which the Company anticipates completing in 2014.

The East/West reportable segment consists of the following properties: Hollywood Casino at Charles Town Races, Hollywood Casino Perryville, Hollywood Casino Bangor, Hollywood Casino at Penn National Race Course, Zia Park Casino, and M Resort.

The Southern Plains reportable segment consists of the following properties: Argosy Casino Riverside, Argosy Casino Sioux City, Hollywood Casino Baton Rouge, Hollywood Casino Tunica, Hollywood Casino Bay St. Louis, Boomtown Biloxi, and the Company’s 50% investment in Kansas Entertainment, which owns the Hollywood Casino at Kansas Speedway.

The Other category consists of the Company’s standalone racing operations, namely Beulah Park, Raceway Park, Rosecroft Raceway, Sanford-Orlando Kennel Club, and the Company’s joint venture interests in Sam Houston Race Park, Valley Race Park and Freehold Raceway. It also included the Company’s joint venture interest in the Maryland Jockey Club which was sold in July 2011. If the Company is successful in obtaining gaming operations at these locations, they would be assigned to one of the Company’s regional executives and reported in their respective reportable segment.  The Other category also includes the Company’s corporate overhead operations which does not meet the definition of an operating segment under ASC 280, “Segment Reporting,” and Bullwhackers.

The following tables 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.

	Midwest		East/West		Southern Plains			Other			Total
	(in thousands)
Three months ended June 30, 2012
Net revenues	$	217,975	$	348,652	$	137,405		$	8,519		$	712,551
Income (loss) from operations	47,139		76,732		37,532			(33,388		)	128,015
Depreciation and amortization	19,645		21,784		11,212			4,150			56,791
Gain (loss) from unconsolidated affiliates	—		—		1,276			(222		)	1,054
Capital expenditures	109,079		15,882		8,881			677			134,519
Three months ended June 30, 2011
Net revenues	214,403		318,614		146,509			8,353			687,879
Income (loss) from operations	69,809		69,485		29,284			(27,986		)	140,592
Depreciation and amortization	15,609		21,116		14,841			2,664			54,230
(Loss) gain from unconsolidated affiliates	—		—		(804		)	1,235			431
Capital expenditures	34,532		11,461		5,426			1,307			52,726
Six months ended June 30, 2012
Net revenues	423,086		719,281		287,125			19,118			1,448,610
Income (loss) from operations	93,422		160,622		82,243			(65,657		)	270,630
Depreciation and amortization	37,197		44,026		22,600			6,305			110,128
Gain (loss) from unconsolidated affiliates	—		—		2,954			(215		)	2,739
Capital expenditures	210,959		26,541		12,813			3,865			254,178
Six months ended June 30, 2011
Net revenues	428,214		606,997		301,600			18,091			1,354,902
Income (loss) from operations	122,484		129,223		68,793			(57,173		)	263,327
Depreciation and amortization	31,252		41,683		29,505			4,948			107,388
Loss from unconsolidated affiliates	—		—		(1,126		)	(797		)	(1,923		)
Capital expenditures	67,738		25,455		12,054			2,003			107,250
Balance sheet at June 30, 2012
Total assets	2,123,147		1,222,677		1,055,614			381,551			4,782,989
Investment in and advances to unconsolidated affiliates	—		119		149,258			67,101			216,478
Goodwill and other intangible assets, net	973,600		226,048		394,018			55,850			1,649,516
Balance sheet at December 31, 2011
Total assets	1,897,164		1,265,438		1,034,506			409,238			4,606,346
Investment in and advances to unconsolidated affiliates	—		110		107,204			66,802			174,116
Goodwill and other intangible assets, net	925,822		226,234		394,018			55,878			1,601,952