Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Information

Schedule of information with respect to the Company's segments

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. 

		Three months ended June 30,				Six months ended June 30,
		2018		2017		2018		2017
Net Revenues
Northeast	$	422,988	$	405,099	$	837,155	$	798,564
South/West		163,370		153,151		324,665		292,970
Midwest		230,460		224,847		460,545		453,185
Other (1)		10,095		13,366		20,633		27,968
Total Reportable Segment Net Revenues		826,913		796,463		1,642,998		1,572,687
Adjusted EBITDA
Northeast		136,927		129,876		268,934		256,451
South/West		46,648		35,049		91,697		71,390
Midwest		79,010		75,490		160,165		153,596
Other (1)		(15,479)		(13,011)		(31,144)		(26,588)
Total Reportable Segment Adjusted EBITDA		247,106		227,404		489,652		454,849
Other operating costs and other expenses (income)
Depreciation and amortization		58,559		68,969		118,949		139,205
Unconsolidated non-operating costs - Kansas JV		1,279		1,309		2,572		3,260
Interest expense		115,873		116,768		231,613		231,764
Interest income		(241)		(235)		(490)		(2,881)
(Gain) loss on disposal of assets		(52)		52		3		7
(Recovery) provision for loan loss and unfunded loan commitments to the JIVDC and impairment losses		(16,985)		5,635		(16,367)		5,635
Insurance recoveries		(68)		—		(68)		—
Cash-settled stock award variance		7,800		6,092		338		11,255
Pre-opening and significant transaction costs		5,879		2,174		11,972		2,746
Loss on early extinguishment of debt and modification costs		2,579		—		3,461		23,390
Other		48		173		44		1,966
Contingent purchase price		202		1,362		1,337		3,922
Charge for stock compensation		3,003		1,801		5,932		3,974
Income before income taxes		69,230		23,304		130,356		30,606
Income taxes		15,242		6,225		30,931		8,423
Net income	$	53,988	$	17,079	$	99,425	$	22,183

		Northeast		South/West		Midwest		Other (1)		Total
Three months ended  June 30, 2018
Capital expenditures	$	7,989	$	5,324	$	5,644	$	2,188	$	21,145
Three months ended  June 30, 2017
Capital expenditures	$	5,533	$	11,924	$	7,345	$	1,002	$	25,804
Six months ended June 30, 2018
Capital expenditures	$	11,476	$	8,736	$	9,376	$	3,370	$	32,958
Six months ended June 30, 2017
Capital expenditures	$	9,523	$	20,546	$	11,676	$	1,215	$	42,960
Balance sheet at June 30, 2018
Total assets (1)	$	811,308	$	758,891	$	1,071,518	$	2,450,113	$	5,091,830
Investment in and advances to unconsolidated affiliates		105		—		86,950		59,538		146,593
Goodwill		21,242		244,695		674,558		68,396		1,008,891
Other intangible assets, net		360,643		799		99,898		13,977		475,317
Balance sheet at December 31, 2017
Total assets (1)	$	821,649	$	794,274	$	1,070,204	$	2,548,685	$	5,234,812
Investment in and advances to unconsolidated affiliates		102		—		88,296		60,514		148,912
Goodwill		21,242		244,695		674,558		67,602		1,008,097
Other intangible assets, net		303,043		1,623		101,698		16,242		422,606

(1) Other also includes corporate overhead operations as well as Penn Interactive Ventures, which is a wholly-owned subsidiary that is focused on the Company’s interactive gaming strategy. Total assets include the real property assets under the Master Lease with GLPI. Net revenues and adjusted EBITDA relate to the Company’s stand-alone racing operations, namely Sanford Orlando Kennel Club and the Company’s joint venture interests in Texas and New Jersey which do not have gaming operations.