Financial Reporting By Business Segments

9 Months Ended

Sep. 30, 2019

Financial Reporting By Business Segments

Financial Reporting By Business Segments

16. FINANCIAL REPORTING BY BUSINESS SEGMENTS:

The Company’s operations are organized into three principal business segments:

● Hospitality, which includes Gaylord Opryland, Gaylord Palms, Gaylord Texan, Gaylord National, the Inn at Opryland, the AC Hotel, and the Company’s investment in the Gaylord Rockies joint venture (which is consolidated below beginning January 1, 2019);

● Entertainment, which includes the Grand Ole Opry, the Ryman Auditorium, WSM-AM, Ole Red, the Company’s equity investment in New Country Ventures, and the Company’s Nashville-based attractions; and

● Corporate and Other, which includes the Company’s corporate expenses.

The following information is derived directly from the segments’ internal financial reports used for corporate management purposes (amounts in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Revenues:
Hospitality	$	328,257	$	249,240	$	1,022,896	$	806,107
Entertainment		51,530		43,009		135,385		108,446
Corporate and Other		—		—		—		—
Total	$	379,787	$	292,249	$	1,158,281	$	914,553
Depreciation and amortization:
Hospitality	$	50,445	$	27,946	$	150,909	$	81,379
Entertainment		3,132		2,613		8,441		6,885
Corporate and Other		421		435		1,210		1,391
Total	$	53,998	$	30,994	$	160,560	$	89,655
Operating income:
Hospitality	$	52,116	$	43,518	$	191,563	$	175,213
Entertainment		14,376		9,069		34,222		20,614
Corporate and Other		(9,825)		(7,647)		(27,728)		(24,572)
Preopening costs (1)		(164)		(300)		(2,274)		(3,972)
Impairment charges (2)		—		(4,540)		—		(4,540)
Total operating income		56,503		40,100		195,783		162,743
Interest expense		(35,261)		(19,220)		(100,840)		(55,574)
Interest income		2,878		2,678		8,756		8,197
Loss from extinguishment of debt		(494)		—		(494)		—
Loss from joint ventures		(308)		(985)		(475)		(2,227)
Other gains and (losses), net		1,109		1,881		857		2,085
Income before income taxes	$	24,427	$	24,454	$	103,587	$	115,224

(1) Preopening costs for the three months ended September 30, 2019 relate to the Entertainment segment. Preopening costs for the three months ended September 30, 2018 include $0.2 million and $0.1 million for the Hospitality and Entertainment segments, respectively. Preopening costs for the nine months ended September 30, 2019 include $0.6 million and $1.6 million for the Hospitality and Entertainment segments, respectively. Preopening costs for the nine months ended September 30, 2018 include $2.2 million and $1.7 million for the Hospitality and Entertainment segments, respectively.

(2) Impairment charges for the 2018 periods relate to the Entertainment segment.