Master Lease Financing Obligation

6 Months Ended

Jun. 30, 2016

Master Lease Financing Obligation

Master Lease Financing Obligation

6.  Master Lease Financing Obligation

The Company’s Master Lease with GLPI is accounted for as a financing obligation. The obligation was calculated at the inception of the transaction based on the future minimum lease payments due to GLPI under the Master Lease discounted at 9.70%, which represents the estimated incremental borrowing rate over the lease term, including renewal options that were reasonably assured of being exercised and the funded construction of certain leased real estate assets in development at the date of the Spin-Off. Total payments under the Master Lease were $110.8 million and $222.2 million and $109.5 million and $218.4 million for the three and six months ended June 30, 2016 and 2015, respectively. The interest expense recognized for the three and six months ended June 30, 2016 was $97.8 million and $196.5 million as compared to $97.7 million and $194.1 million for the three and six months ended June 30, 2015, respectively.