(Mark One) | |
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2018 | |
OR | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Pennsylvania (State or other jurisdiction of incorporation or organization) | 46-2116489 (I.R.S. Employer Identification No.) | |
845 Berkshire Blvd., Suite 200 Wyomissing, Pennsylvania (Address of principal executive offices) | 19610 (Zip Code) |
Title of each class | Name of each exchange on which registered | |
Common Stock, par value $.01 per share | NASDAQ |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o Emerging growth company o |
• | the availability of and the ability to identify suitable and attractive acquisition and development opportunities and the ability to acquire and lease the respective properties on favorable terms; |
• | the degree and nature of our competition; |
• | the ability to receive, or delays in obtaining, the regulatory approvals required to own and/or operate our properties, or other delays or impediments to completing our planned acquisitions or projects; |
• | our ability to maintain our status as a real estate investment trust ("REIT"), given the highly technical and complex Internal Revenue Code (the "Code") provisions for which only limited judicial and administrative authorities exist, where even a technical or inadvertent violation could jeopardize REIT qualification and where requirements may depend in part on the actions of third parties over which the Company has no control or only limited influence; |
• | the satisfaction of certain asset, income, organizational, distribution, shareholder ownership and other requirements on a continuing basis in order for the Company to maintain its REIT status; |
• | the ability and willingness of our tenants, operators and other third parties to meet and/or perform their obligations under their respective contractual arrangements with us, including lease and note requirements and in some cases, their obligations to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities; |
• | the ability of our tenants and operators to maintain the financial strength and liquidity necessary to satisfy their respective obligations and liabilities to third parties, including without limitation obligations under their existing credit facilities and other indebtedness; |
• | the ability of our tenants and operators to comply with laws, rules and regulations in the operation of our properties, to deliver high quality services, to attract and retain qualified personnel and to attract customers; |
• | the satisfaction of the mortgage loan made to Eldorado Resorts, Inc. ("Eldorado") by way of substitution of one or more additional Eldorado properties acceptable to Eldorado and the Company, which will be transferred to the Company and added to the master lease agreement with Eldorado; |
• | the ability to generate sufficient cash flows to service our outstanding indebtedness; |
• | the access to debt and equity capital markets, including for acquisitions or refinancing due to maturities; |
• | adverse changes in our credit rating; |
• | fluctuating interest rates; |
• | the impact of global or regional economic conditions; |
• | the availability of qualified personnel and our ability to retain our key management personnel; |
• | GLPI's duty to indemnify Penn National Gaming, Inc. ("Penn") in certain circumstances if the spin-off transaction described in Part 1 of this Annual Report on Form 10-K fails to be tax-free; |
• | changes in the United States tax law and other state, federal or local laws, whether or not specific to real estate, real estate investment trusts or to the gaming, lodging or hospitality industries; |
• | changes in accounting standards; |
• | the impact of weather events or conditions, natural disasters, acts of terrorism and other international hostilities, war or political instability; |
• | other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and |
• | additional factors discussed in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this report. |
Page | ||
Location | Tenant/Operator | Approx. Property Square Footage (1) | Owned Acreage | Leased Acreage (2) | Hotel Rooms | |||||||||
Tenant Occupied Properties | ||||||||||||||
Hollywood Casino Lawrenceburg | Lawrenceburg, IN | Penn | 634,000 | 73.1 | 32.1 | 295 | ||||||||
Hollywood Casino Aurora | Aurora, IL | Penn | 222,189 | 0.4 | 1.7 | — | ||||||||
Hollywood Casino Joliet | Joliet, IL | Penn | 322,446 | 275.6 | — | 100 | ||||||||
Argosy Casino Alton | Alton, IL | Penn | 124,569 | 0.2 | 3.6 | — | ||||||||
Hollywood Casino Toledo | Toledo, OH | Penn | 285,335 | 42.3 | — | — | ||||||||
Hollywood Casino Columbus | Columbus, OH | Penn | 354,075 | 116.2 | — | — | ||||||||
Hollywood Casino at Charles Town Races | Charles Town, WV | Penn | 511,249 | 298.6 | — | 150 | ||||||||
Hollywood Casino at Penn National Race Course | Grantville, PA | Penn | 451,758 | 573.7 | — | — | ||||||||
M Resort | Henderson, NV | Penn | 910,173 | 83.5 | — | 390 | ||||||||
Hollywood Casino Bangor | Bangor, ME | Penn | 257,085 | 6.4 | 37.9 | 152 | ||||||||
Zia Park Casino (3) | Hobbs, NM | Penn | 109,067 | 317.4 | — | — | ||||||||
Hollywood Casino Gulf Coast | Bay St. Louis, MS | Penn | 425,920 | 578.7 | — | 291 | ||||||||
Argosy Casino Riverside | Riverside, MO | Penn | 450,397 | 37.9 | — | 248 | ||||||||
Hollywood Casino Tunica | Tunica, MS | Penn | 315,831 | — | 67.7 | 494 | ||||||||
Boomtown Biloxi | Biloxi, MS | Penn | 134,800 | 1.5 | 1.0 | — | ||||||||
Hollywood Casino St. Louis | Maryland Heights, MO | Penn | 645,270 | 222.4 | — | 502 | ||||||||
Hollywood Gaming at Dayton Raceway | Dayton, OH | Penn | 191,037 | 119.7 | — | — | ||||||||
Hollywood Gaming at Mahoning Valley Race Course | Youngstown, OH | Penn | 177,448 | 193.4 | — | — | ||||||||
Resorts Casino Tunica | Tunica, MS | Penn | 319,823 | — | 86.6 | 201 | ||||||||
1st Jackpot Casino | Tunica, MS | Penn | 78,941 | 52.9 | 93.8 | — | ||||||||
Ameristar Black Hawk | Black Hawk, CO | Penn | 775,744 | 104.1 | — | 535 | ||||||||
Ameristar East Chicago | East Chicago, IN | Penn | 509,867 | — | 21.6 | 288 | ||||||||
Ameristar Council Bluffs (3) | Council Bluffs, IA | Penn | 312,047 | 36.2 | 22.6 | 160 | ||||||||
L'Auberge Baton Rouge | Baton Rouge, LA | Penn | 436,461 | 99.1 | — | 205 | ||||||||
Boomtown Bossier City | Bossier City, LA | Penn | 281,747 | 21.8 | — | 187 | ||||||||
L'Auberge Lake Charles | Lake Charles, LA | Penn | 1,014,497 | — | 234.5 | 995 | ||||||||
Boomtown New Orleans | New Orleans, LA | Penn | 278,227 | 53.6 | — | 150 | ||||||||
Ameristar Vicksburg | Vicksburg, MS | Penn | 298,006 | 74.1 | — | 148 | ||||||||
River City Casino and Hotel | St. Louis, MO | Penn | 431,226 | — | 83.4 | 200 | ||||||||
Jackpot Properties (4) | Jackpot, NV | Penn | 419,800 | 79.5 | — | 416 | ||||||||
Plainridge Park Casino | Plainville, MA | Penn | 196,473 | 87.9 | — | — | ||||||||
The Meadows Racetrack and Casino (3) | Washington, PA | Penn | 417,921 | 155.5 | — | — | ||||||||
Casino Queen | East St. Louis, IL | Casino Queen | 330,502 | 67.2 | — | 157 | ||||||||
Belterra Casino Resort | Florence, IN | Boyd | 782,393 | 167.1 | 148.5 | 662 | ||||||||
Ameristar Kansas City | Kansas City, MO | Boyd | 763,939 | 224.5 | 31.4 | 184 | ||||||||
Ameristar St. Charles | St. Charles, MO | Boyd | 1,272,938 | 241.2 | — | 397 | ||||||||
Tropicana Atlantic City | Atlantic City, NJ | Eldorado | 4,232,018 | 18.3 | — | 2,366 | ||||||||
Tropicana Evansville | Evansville, IN | Eldorado | 754,833 | 18.4 | 10.2 | 338 | ||||||||
Tropicana Laughlin | Laughlin, NV | Eldorado | 936,453 | 93.6 | — | 1,487 | ||||||||
Trop Casino Greenville | Greenville, MS | Eldorado | 94,017 | — | 7.4 | 40 | ||||||||
Belle of Baton Rouge | Baton Rouge, LA | Eldorado | 386,398 | 13.1 | 0.8 | 288 | ||||||||
21,846,920 | 4,549.1 | 884.8 | 12,026 | |||||||||||
Mortgaged Properties | ||||||||||||||
Belterra Park Gaming & Entertainment Center (5) | Cincinnati, OH | Boyd | 372,650 | 160.0 | — | — |
Lumiére Place (5) | St. Louis, MO | Eldorado | 1,020,782 | 18.5 | — | 494 | ||||||||
1,393,432 | 178.5 | — | 494 | |||||||||||
Other Properties | ||||||||||||||
Other owned buildings and land (6) | various | N/A | 23,400 | 3.9 | — | — | ||||||||
TRS Properties | ||||||||||||||
Hollywood Casino Baton Rouge | Baton Rouge, LA | GLPI | 95,318 | 25.1 | — | — | ||||||||
Hollywood Casino Perryville | Perryville, MD | GLPI | 97,961 | 36.4 | — | — | ||||||||
193,279 | 61.5 | — | — | |||||||||||
Total | 23,457,031 | 4,793.0 | 884.8 | 12,520 |
(1) | Square footage includes air-conditioned space and excludes parking garages and barns. |
(2) | Leased acreage reflects land subject to leases with third-parties and includes land on which certain of the current facilities and ancillary supporting structures are located as well as parking lots and access rights. |
(3) | These properties include hotels not owned by the Company. Square footage and rooms associated with properties not owned by GLPI are excluded from the table above. |
(4) | Encompasses two gaming properties in Jackpot, Nevada, Cactus Petes and The Horseshu. |
(5) | The Company financed the purchase of these properties by their respective owner-operators through mortgage loans to the owner-operators. Square footage, acreage and rooms associated with these properties that we do not own are included in this table for informational purposes only. |
(6) | This includes our corporate headquarters building and undeveloped land the Company owns at locations other than its tenant occupied properties. |
Name | Age | Position | ||
Peter M. Carlino | 72 | Chairman of the Board and Chief Executive Officer | ||
Steven T. Snyder | 58 | Interim Chief Financial Officer and Senior Vice President of Corporate Development | ||
Brandon J. Moore | 44 | Senior Vice President, General Counsel and Secretary | ||
Desiree A. Burke | 53 | Senior Vice President and Chief Accounting Officer |
• | We will be taxed at regular corporate rates on any undistributed net taxable income, including undistributed net capital gains. |
• | For tax years that began prior to January 1, 2018, we may be subject to the "alternative minimum tax" on our items of tax preference, including any deductions of net operating losses. |
• | If we have net income from prohibited transactions, which are, in general, sales or other dispositions of inventory or property held primarily for sale to customers in the ordinary course of business, other than foreclosure property, such income will be subject to a 100% tax. |
• | If we elect to treat property that we acquire in connection with a foreclosure of a mortgage loan or certain leasehold terminations as "foreclosure property," we may thereby avoid the 100% tax on gain from a resale of that property (if the sale would otherwise constitute a prohibited transaction), but the income from the sale or operation of the property may be subject to corporate income tax at the highest applicable rate (currently 21%). |
• | If we fail to satisfy the 75% gross income test and/or the 95% gross income test, as discussed below, but nonetheless maintain our qualification as a REIT because we satisfy other requirements, we will be subject to a 100% tax on an amount based on the magnitude of the failure, as adjusted to reflect the profit margin associated with our gross income. |
• | If we violate the asset tests (other than certain de minimis violations) or other requirements applicable to REITs, as described below, and yet maintain our qualification as a REIT because there is reasonable cause for the failure and other applicable requirements are met, we may be subject to a penalty tax. In that case, the amount of the penalty tax will be at least $50,000 per failure, and, in the case of certain asset test failures, will be determined as the amount of net income generated by the nonqualifying assets in question multiplied by the highest corporate tax rate (currently 21%) if that amount exceeds $50,000 per failure. |
• | If we fail to distribute during each calendar year at least the sum of (i) 85% of our ordinary income for such year, (ii) 95% of our capital gain net income for such year and (iii) any undistributed net taxable income from prior periods, we will be subject to a nondeductible 4% excise tax on the excess of the required distribution over the sum of (a) the amounts that we actually distributed and (b) the amounts we retained and upon which we paid income tax at the corporate level. |
• | We may be required to pay monetary penalties to the IRS in certain circumstances, including if we fail to meet record-keeping requirements intended to monitor our compliance with rules relating to the composition of a REIT's shareholders. |
• | A 100% tax may be imposed on transactions between us and a TRS that do not reflect arm's-length terms. |
• | If we acquire appreciated assets from a corporation that is not a REIT (i.e., a corporation taxable under subchapter C of the Code) in a transaction in which the adjusted tax basis of the assets in our hands is determined by reference to the adjusted tax basis of the assets in the hands of the subchapter C corporation, we may be subject to tax on such appreciation at the highest corporate income tax rate then applicable if we subsequently recognize gain on a disposition of any such assets during the five-year period following their acquisition from the subchapter C corporation. (Notwithstanding the “Supplement to Certain United States Federal Income Tax Considerations” section of our Prospectus Supplement dated August 9, 2016, to our Prospectus dated March 28, 2016, final regulations were issued by the U.S. Department of the Treasury (the “Treasury”) on January 17, 2017, confirming that the recognition period during which this tax could apply is a 5-year period and not a 10-year period.) |
• | The earnings of our TRS Properties will generally be subject to U.S. federal corporate income tax. |
1. | that is managed by one or more trustees or directors; |
2. | the beneficial ownership of which is evidenced by transferable shares, or by transferable certificates of beneficial interest; |
3. | that would be taxable as a domestic corporation but for its election to be subject to tax as a REIT; |
4. | that is neither a financial institution nor an insurance company subject to specific provisions of the Code; |
5. | the beneficial ownership of which is held by 100 or more persons; |
6. | in which, during the last half of each taxable year, not more than 50% in value of the outstanding stock is owned, directly or indirectly, by five or fewer "individuals" (as defined in the Code to include specified tax-exempt entities); and |
7. | that meets other tests described below, including with respect to the nature of its income and assets. |
• | The amount of rent must not be based in whole or in part on the income or profits of any person. However, an amount received or accrued generally will not be excluded from the term "rents from real property" solely by reason of being based on a fixed percentage or percentages of gross receipts or sales. |
• | Rents received from a tenant will not qualify as "rents from real property" in satisfying the gross income tests if the REIT, or a direct or indirect owner of 10% or more of the REIT, directly or constructively, owns 10% or more of such tenant (a "Related Party Tenant"). However, rental payments from a taxable REIT subsidiary will qualify as rents from real property even if we own more than 10% of the total value or combined voting power of the taxable REIT subsidiary if (i) at least 90% of the property is leased to unrelated tenants and the rent paid by the taxable REIT subsidiary is substantially comparable to the rent paid by the unrelated tenants for comparable space or (ii) the property leased is a “qualified lodging facility,” as defined in Section 856(d)(9)(D) of the Code, or a “qualified health care property,” as defined in Section 856(e)(6)(D)(i) of the Code, and certain other conditions are satisfied. |
• | Rent attributable to personal property leased in connection with a lease of real property will not qualify as "rents from real property" if such rent exceeds 15% of the total rent received under the lease. |
• | The REIT generally must not operate or manage the property or furnish or render services to tenants, except through an "independent contractor" who is adequately compensated and from whom the REIT derives no income, or through a taxable REIT subsidiary. The "independent contractor" requirement, however, does not apply to the extent the services provided by the REIT are "usually or customarily rendered" in connection with the rental of space for occupancy only, and are not otherwise considered "rendered to the occupant." In addition, a de minimis rule applies with respect to non-customary services. Specifically, if the value of the non-customary service income with respect to a property (valued at no less than 150% of the direct costs of performing such services) is 1% or less of the total income derived from the property, then all rental income except the non-customary service income will qualify as "rents from real property." A taxable REIT subsidiary may provide services (including noncustomary services) to a REIT’s tenants without "tainting" any of the rental income received by the REIT, and will be able to manage or operate properties for third parties and generally engage in other activities unrelated to real estate. |
(i) | the sum of |
(a) | 90% of our REIT taxable income, computed without regard to our net capital gains and the deduction for dividends paid; and |
(b) | 90% of our after tax net income, if any, from foreclosure property (as described below); minus |
(ii) | the excess of the sum of specified items of non-cash income over 5% of our REIT taxable income, computed without regard to our net capital gain and the deduction for dividends paid. |
• | ensure that unsuitable individuals and organizations have no role in gaming operations; |
• | establish procedures designed to prevent cheating and fraudulent practices; |
• | establish and maintain responsible accounting practices and procedures; |
• | maintain effective controls over their financial practices, including establishment of minimum procedures for internal fiscal affairs and the safeguarding of assets and revenues; |
• | maintain systems for reliable record keeping; |
• | file periodic reports with gaming regulators; |
• | ensure that contracts and financial transactions are commercially reasonable, reflect fair market value and are arms-length transactions; and |
• | establish programs to promote responsible gaming. |
• | changes in stock market analyst recommendations or earnings estimates regarding our common stock or other comparable REITs; |
• | actual or anticipated fluctuations in our revenue stream or future prospects; |
• | strategic actions taken by us or our competitors, such as acquisitions; |
• | our failure to close pending acquisitions; |
• | our failure to achieve the perceived benefits of our acquisitions, including financial results, as rapidly as or to the extent anticipated by financial or industry analysts; |
• | new laws or regulations or new interpretations of existing laws or regulations applicable to our business and operations or the gaming industry; |
• | changes in tax or accounting standards, policies, guidance, interpretations or principles; |
• | changes in the interest rate environment; |
• | adverse conditions in the financial markets or general U.S. or international economic conditions, including those resulting from war, incidents of terrorism and responses to such events; and |
• | sales of our common stock by members of our management team or other significant shareholders. |
• | $927.0 million of total indebtedness outstanding under our senior unsecured credit facility (the "Credit Facility") (consisting of the $525.0 million Term Loan A-1 facility and $402.0 million of borrowings under our revolving credit facility) and approximately $772.6 million available for borrowing under our Revolver (including $0.4 million of contingent obligations under letters of credit); |
• | $4.975 billion of outstanding senior unsecured notes; and |
• | approximately $1.1 million of capital lease obligation related to certain assets. |
• | it may limit our ability to obtain additional debt or equity financing for working capital, capital expenditures, acquisitions, debt service requirements and general corporate or other purposes; |
• | a material portion of our cash flows will be dedicated to the payment of principal and interest on our indebtedness, including indebtedness we may incur in the future, and will not be available for other purposes, including to make acquisitions; |
• | it could limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate and place us at a competitive disadvantage compared to our competitors that have less debt or are less leveraged; |
• | it could make us more vulnerable to downturns in general economic or industry conditions or in our business, or prevent us from carrying out activities that are important to our growth; |
• | it could increase our interest expense if interest rates in general increase because our indebtedness under the Credit Facility bears interest at floating rates; |
• | it could limit our ability to take advantage of strategic business opportunities; and |
• | it could make it more difficult for us to satisfy our obligations with respect to our indebtedness. Any failure to comply with the obligations of any of our debt instruments could result in an event of default which, if not cured or waived, could result in the acceleration of our indebtedness under the Credit Facility and other outstanding debt obligations. |
Year Ended December 31, | |||||||||||||||||||
2018 (1) | 2017 (1) | 2016 (1) | 2015 | 2014 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
Income statement data: | |||||||||||||||||||
Total revenues | $ | 1,055,727 | $ | 971,307 | $ | 828,255 | $ | 575,053 | $ | 591,068 | |||||||||
Total operating expenses | 461,917 | 365,789 | 347,632 | 317,638 | 332,562 | ||||||||||||||
Income from operations | 593,810 | 605,518 | 480,623 | 257,415 | 258,506 | ||||||||||||||
Total other expenses | 249,330 | 215,133 | 183,773 | 121,851 | 114,586 | ||||||||||||||
Income before income taxes | 344,480 | 390,385 | 296,850 | 135,564 | 143,920 | ||||||||||||||
Taxes on income | 4,964 | 9,787 | 7,545 | 7,442 | 5,113 | ||||||||||||||
Net income (2) | $ | 339,516 | $ | 380,598 | $ | 289,305 | $ | 128,122 | $ | 138,807 | |||||||||
Per share data: | |||||||||||||||||||
Basic earnings per common share | $ | 1.59 | $ | 1.80 | $ | 1.62 | $ | 1.12 | $ | 1.23 | |||||||||
Diluted earnings per common share | $ | 1.58 | $ | 1.79 | $ | 1.60 | $ | 1.08 | $ | 1.18 | |||||||||
Weighted shares outstanding - Basic | 213,720 | 210,705 | 178,594 | 114,432 | 112,037 | ||||||||||||||
Weighted shares outstanding - Diluted | 214,779 | 212,752 | 180,622 | 118,439 | 117,586 | ||||||||||||||
Other data: | |||||||||||||||||||
Net cash provided by operating activities | $ | 654,433 | $ | 598,711 | $ | 514,370 | $ | 319,688 | $ | 273,259 | |||||||||
Net cash (used in) provided by investing activities | (1,509,784 | ) | 698 | (3,218,616 | ) | (14,142 | ) | (317,319 | ) | ||||||||||
Net cash provided by (used in) financing activities | 852,080 | (606,911 | ) | 2,698,927 | (299,644 | ) | (205,188 | ) | |||||||||||
Depreciation and amortization | 148,365 | 123,835 | 115,717 | 109,783 | 106,843 | ||||||||||||||
Straight-line rent adjustments | 61,888 | 65,971 | 58,673 | 55,825 | 44,877 | ||||||||||||||
Goodwill impairment charges (2) | 59,454 | — | — | — | — | ||||||||||||||
Collections of principal payments on investment in direct financing lease (3) | 38,459 | 73,072 | 48,533 | — | — | ||||||||||||||
Interest expense | 247,684 | 217,068 | 185,896 | 124,183 | 117,030 | ||||||||||||||
Capital expenditures (4) | 4,304 | 3,256 | 3,441 | 19,102 | 142,769 | ||||||||||||||
Balance sheet data: | |||||||||||||||||||
Cash and cash equivalents | $ | 25,783 | $ | 29,054 | $ | 36,556 | $ | 41,875 | $ | 35,973 | |||||||||
Real estate investments, net (3) | 7,331,460 | 3,662,045 | 3,739,091 | 2,090,059 | 2,180,124 | ||||||||||||||
Investment in direct financing lease, net (3) | — | 2,637,639 | 2,710,711 | — | — | ||||||||||||||
Total assets | 8,577,293 | 7,246,882 | 7,369,330 | 2,448,155 | 2,525,454 | ||||||||||||||
Long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts | 5,853,497 | 4,442,880 | 4,664,965 | 2,510,341 | 2,570,361 | ||||||||||||||
Shareholders' equity (deficit) | 2,265,607 | 2,458,247 | 2,433,869 | (253,514 | ) | (176,290 | ) | ||||||||||||
Property Data: | |||||||||||||||||||
Number of rental properties owned at year end | 42 | 36 | 34 | 19 | 19 | ||||||||||||||
Rentable square feet at year end | 21,847 | 15,198 | 14,799 | 6,970 | 6,970 |
(1) | In October 2018, the Company purchased the real property assets of five Tropicana properties for approximately $992.5 million. These assets were subsequently leased to Eldorado under a triple-net master lease. Also in October |
(2) | During the fourth quarter of 2018, the Company recorded an impairment charge of $59.5 million, related to the |
(3) | Prior to the Penn-Pinnacle Merger, the Pinnacle Master Lease was bifurcated between an operating lease and a direct financing lease, with the land assets qualifying for operating lease treatment and the building assets triggering direct financing lease treatment. This net investment in direct financing lease was unwound in conjunction with the Penn-Pinnacle Merger, via the fourth amendment to the Pinnacle Master Lease. As a result of this amendment, the Company reassessed the lease's classification and determined the new lease agreement qualified for operating lease treatment under ASC 840 - Leases ("ASC 840"). Therefore, subsequent to the Penn-Pinnacle Merger, the Amended Pinnacle Master Lease is treated as an operating lease in its entirety, the building assets previously recorded as an investment in direct financing lease on the Company's consolidated balance sheet were recorded as real estate assets on the Company's consolidated balance sheet and all rent received under the Amended Pinnacle Master Lease is recorded as rental income on the Company's consolidated statement of income. |
(4) | The higher level of capital expenditures in 2014 was primarily due to the construction of Hollywood Gaming at Dayton Raceway and Hollywood Gaming at Mahoning Valley Race Course which opened to the public on August 28, 2014 and September 17, 2014, respectively. |
• | Total income from real estate was $923.2 million and $829.2 million for the years ended December 31, 2018 and 2017, respectively. Total income from real estate increased by $94.0 million for the year ended December 31, 2018, as compared to the year ended December 31, 2017, primarily due to the Tropicana Transactions, the Penn-Pinnacle Merger and our entry into the Belterra Park Loan, as well as the performance of the Ohio properties, the impact of the rent escalators under the Penn and Pinnacle master leases, net percentage rent adjustments and the partial recognition of income previously deferred under the Penn Master Lease in accordance with ASC 840. |
• | Net revenues for our TRS Properties decreased by $9.5 million for the year ended December 31, 2018, as compared to the prior year, primarily due to decreased revenues at Hollywood Casino Baton Rouge, partially offset by a slight increase in revenues at Hollywood Casino Perryville. |
• | Total operating expenses increased by $96.1 million for the year ended December 31, 2018, as compared to the prior year, primarily driven by a goodwill impairment charge of $59.5 million related to Hollywood Casino Baton Rouge and an increase in depreciation expense resulting from the addition of the Tropicana and Plainridge Park real estate assets to our real estate portfolio, as well as the reclassification of the Pinnacle building assets to real estate investments on our balance sheet as a result of the Penn-Pinnacle Merger, which required the Amended Pinnacle Master Lease to be treated as an operating lease in its entirety. Also driving the increase in total operating expenses for the year ended December 31, 2018, as compared to the prior year, are accrued retirement costs of $13.1 million related to the retirement of our former Chief Financial Officer. |
• | Other expenses, net increased by $34.2 million for the year ended December 31, 2018, as compared to the prior year, driven by an increase in interest expense related to the debt refinancing in the second quarter of 2018 and debt issuances in the third quarter of 2018, the proceeds of which were utilized for the October closings of both the Tropicana Transactions and the acquisition of Plainridge Park and the funding of the Belterra Park Loan in connection with the Penn-Pinnacle Merger. In addition, the Company incurred losses on the extinguishment of debt during the second quarter of 2018. |
• | Income tax expense decreased by $4.8 million for the year ended December 31, 2018, primarily due to the Tax Cuts and Jobs Act, which lowered the corporate tax rate to 21%, effective for tax years including or commencing January 1, 2018, as well as lower income at our TRS Properties. |
• | Net income decreased by $41.1 million for the year ended December 31, 2018, as compared to the prior year, primarily due to the variances explained above. |
• | On October 15, 2018, Penn's acquisition of Pinnacle closed, and the Company completed its previously announced transactions with Penn, Pinnacle and Boyd. Concurrent with Penn's acquisition, the Company amended the Pinnacle Master Lease to allow for the sale of the operating assets of Ameristar Casino Hotel Kansas City, Ameristar Casino Resort Spa St. Charles and Belterra Casino Resort from Pinnacle to Boyd and entered into a new triple-net master lease agreement with Boyd for these properties on terms similar to the Company’s existing master leases. The Company also purchased the real estate assets of Plainridge Park Casino from Penn for $250.0 million, exclusive of transaction fees and taxes and added this property to the Amended Pinnacle Master Lease. We also entered into a loan agreement with Boyd in connection with Boyd's acquisition of Belterra Park, whereby we loaned Boyd $57.7 million, act as mortgagee and collect |
◦ | On October 1, 2018, the Company purchased the real property assets of five properties from Tropicana for $964.0 million, exclusive of taxes and transaction fees. Concurrent with the acquisition of these properties, Eldorado purchased the operating assets of these Tropicana properties and Lumière Place and entered into a new triple-net master lease with the Company for the lease of the five Tropicana properties purchased by us for a 15-year initial term with no purchase option followed by four successive 5-year renewal periods (exercisable by Eldorado). Initial annual rent under the Eldorado Master Lease is $87.6 million. The Company also made a loan to Eldorado in the amount of $246.0 million in connection with Eldorado’s acquisition of Lumière Place, which will generate initial annual interest income of $22.4 million. |
• | On May 1, 2017, the Company purchased the real property assets of the 1st Jackpot Casino and Resorts Casino Tunica for $82.9 million. Penn purchased the operating assets of the Tunica Properties directly from the seller, operates both properties and leases the real property assets from the Company under the Penn Master Lease. |
• | During the second quarter of 2018, a smoking ban went into effect at all Baton Rouge, Louisiana casinos, which in combination with the general market deterioration in the Baton Rouge region has contributed to the poor performance of our Hollywood Casino Baton Rouge property, resulting in the impairment charge of $59.5 million during the fourth quarter of 2018. |
• | During the first quarter of 2017, Hollywood Casino Perryville outsourced the operation of its food and beverage outlets to a third-party provider. Employees of these outlets are now employees of the third-party; therefore both Hollywood Casino Perryville's revenues and expenses related to food and beverage decreased during the year ended December 31, 2017, as compared to the prior year. |
• | Projected revenues and operating cash flows; |
• | Theoretical construction costs and duration; |
• | Pre-opening expenses; |
• | Discounting that reflects the level of risk associated with receiving future cash flows attributable to the license; and |
• | Remaining useful life of the license. |
• | The fact that several wholly-owned subsidiaries of Penn lease a substantial number of our properties, pursuant to two master leases and a single property lease and account for a significant portion of our revenue. |
• | The risks related to economic conditions and the effect of such conditions on consumer spending for leisure and gaming activities, which may negatively impact our gaming tenants and operators and the variable rent we receive from our tenants as outlined in the long-term triple-net leases with these tenants. |
• | The fact that the rules and regulations of U.S. federal income taxation are constantly under review by legislators, the IRS and the U.S. Department of the Treasury. Changes to the tax laws or interpretations thereof, with or without retroactive application, could materially and adversely affect GLPI's investors or GLPI. |
Year Ended December 31, | 2018 | 2017 | 2016 | ||||||||
(in thousands) | |||||||||||
Revenues | |||||||||||
Rental income | $ | 747,654 | $ | 671,190 | $ | 567,444 | |||||
Income from direct financing lease | 81,119 | 74,333 | 48,917 | ||||||||
Interest income from mortgaged real estate | 6,943 | — | — | ||||||||
Real estate taxes paid by tenants | 87,466 | 83,698 | 67,843 | ||||||||
Total income from real estate | 923,182 | 829,221 | 684,204 | ||||||||
Gaming, food, beverage and other | 132,545 | 142,086 | 144,051 | ||||||||
Total revenues | 1,055,727 | 971,307 | 828,255 | ||||||||
Operating expenses | |||||||||||
Gaming, food, beverage and other | 77,127 | 80,487 | 82,463 | ||||||||
Real estate taxes | 88,757 | 84,666 | 69,448 | ||||||||
Land rights and ground lease expense | 28,358 | 24,005 | 14,799 | ||||||||
General and administrative | 71,128 | 63,151 | 71,368 | ||||||||
Depreciation | 137,093 | 113,480 | 109,554 | ||||||||
Goodwill impairment charges | 59,454 | — | — | ||||||||
Total operating expenses | 461,917 | 365,789 | 347,632 | ||||||||
Income from operations | $ | 593,810 | $ | 605,518 | $ | 480,623 |
Total Revenues | Income from Operations | ||||||||||||||||||||||
Year Ended December 31, | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||||||
(in thousands) | |||||||||||||||||||||||
GLP Capital | $ | 923,182 | $ | 829,221 | $ | 684,204 | $ | 630,122 | $ | 578,661 | $ | 454,682 | |||||||||||
TRS Properties | 132,545 | 142,086 | 144,051 | (36,312 | ) | 26,857 | 25,941 | ||||||||||||||||
Total | $ | 1,055,727 | $ | 971,307 | $ | 828,255 | $ | 593,810 | $ | 605,518 | $ | 480,623 |
Year Ended December 31, | 2018 | 2017 | 2016 | ||||||||
(in thousands) | |||||||||||
Net income | $ | 339,516 | $ | 380,598 | $ | 289,305 | |||||
Losses (gains) from dispositions of property | 309 | 530 | (455 | ) | |||||||
Real estate depreciation | 125,630 | 100,576 | 96,074 | ||||||||
Funds from operations | $ | 465,455 | $ | 481,704 | $ | 384,924 | |||||
Straight-line rent adjustments | 61,888 | 65,971 | 58,673 | ||||||||
Direct financing lease adjustments | 38,459 | 73,072 | 48,533 | ||||||||
Other depreciation | 11,463 | 12,904 | 13,480 | ||||||||
Amortization of land rights | 11,272 | 10,355 | 6,163 | ||||||||
Amortization of debt issuance costs (1) | 12,167 | 13,026 | 15,146 | ||||||||
Stock based compensation | 11,152 | 15,636 | 18,312 | ||||||||
Losses on debt extinguishment | 3,473 | — | — | ||||||||
Retirement costs | 13,149 | — | — | ||||||||
Goodwill impairment charges | 59,454 | — | — | ||||||||
Capital maintenance expenditures | (4,284 | ) | (3,178 | ) | (3,111 | ) | |||||
Adjusted funds from operations | $ | 683,648 | $ | 669,490 | $ | 542,120 | |||||
Interest, net | 245,857 | 215,133 | 183,773 | ||||||||
Income tax expense | 4,964 | 9,787 | 7,545 | ||||||||
Capital maintenance expenditures | 4,284 | 3,178 | 3,111 | ||||||||
Amortization of debt issuance costs (1) | (12,167 | ) | (13,026 | ) | (15,146 | ) | |||||
Adjusted EBITDA | $ | 926,586 | $ | 884,562 | $ | 721,403 |
GLP Capital | TRS Properties | |||||||||||||||||||||||
Year Ended December 31, | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Net income | $ | 390,341 | $ | 372,832 | $ | 280,295 | $ | (50,825 | ) | $ | 7,766 | $ | 9,010 | |||||||||||
Losses (gains) from dispositions of property | 76 | — | (471 | ) | 233 | 530 | 16 | |||||||||||||||||
Real estate depreciation | 125,630 | 100,576 | 96,074 | — | — | — | ||||||||||||||||||
Funds from operations | $ | 516,047 | $ | 473,408 | $ | 375,898 | $ | (50,592 | ) | $ | 8,296 | $ | 9,026 | |||||||||||
Straight-line rent adjustments | 61,888 | 65,971 | 58,673 | — | — | — | ||||||||||||||||||
Direct financing lease adjustments | 38,459 | 73,072 | 48,533 | — | — | — | ||||||||||||||||||
Other depreciation | 2,066 | 2,076 | 2,097 | 9,397 | 10,828 | 11,383 | ||||||||||||||||||
Amortization of land rights | 11,272 | 10,355 | 6,163 | — | — | — | ||||||||||||||||||
Debt issuance costs amortization (1) | 12,167 | 13,026 | 15,146 | — | — | — | ||||||||||||||||||
Stock based compensation | 11,152 | 15,636 | 18,312 | — | — | — | ||||||||||||||||||
Losses on debt extinguishment | 3,473 | — | — | — | — | — | ||||||||||||||||||
Retirement costs | 13,149 | — | — | — | — | — | ||||||||||||||||||
Goodwill impairment charges | — | — | — | 59,454 | — | — | ||||||||||||||||||
Capital maintenance expenditures | (55 | ) | — | — | (4,229 | ) | (3,178 | ) | (3,111 | ) | ||||||||||||||
Adjusted funds from operations | $ | 669,618 | $ | 653,544 | $ | 524,822 | $ | 14,030 | $ | 15,946 | $ | 17,298 | ||||||||||||
Interest, net (2) | 235,453 | 204,730 | 173,371 | 10,404 | 10,403 | 10,402 | ||||||||||||||||||
Income tax expense | 855 | 1,099 | 1,016 | 4,109 | 8,688 | 6,529 | ||||||||||||||||||
Capital maintenance expenditures | 55 | — | — | 4,229 | 3,178 | 3,111 | ||||||||||||||||||
Debt issuance costs amortization (1) | (12,167 | ) | (13,026 | ) | (15,146 | ) | — | — | — | |||||||||||||||
Adjusted EBITDA | $ | 893,814 | $ | 846,347 | $ | 684,063 | $ | 32,772 | $ | 38,215 | $ | 37,340 |
(2) | Interest expense, net for the GLP Capital segment is net of an intercompany interest elimination of $10.4 million for the years ended December 31, 2018, 2017 and 2016. |
Percentage | |||||||||||||||
Year Ended December 31, | 2018 | 2017 | Variance | Variance | |||||||||||
Total income from real estate | $ | 923,182 | $ | 829,221 | $ | 93,961 | 11.3 | % | |||||||
Gaming, food, beverage and other | 132,545 | 142,086 | (9,541 | ) | (6.7 | )% | |||||||||
Total revenues | 1,055,727 | 971,307 | 84,420 | 8.7 | % |
Percentage | |||||||||||||||
Year Ended December 31, | 2017 | 2016 | Variance | Variance | |||||||||||
Total income from real estate | $ | 829,221 | $ | 684,204 | $ | 145,017 | 21.2 | % | |||||||
Gaming, food, beverage and other | 142,086 | 144,051 | (1,965 | ) | (1.4 | )% | |||||||||
Total revenues | 971,307 | 828,255 | 143,052 | 17.3 | % |
Percentage | |||||||||||||||
Year Ended December 31, | 2018 | 2017 | Variance | Variance | |||||||||||
Gaming, food, beverage and other | $ | 77,127 | $ | 80,487 | $ | (3,360 | ) | (4.2 | )% | ||||||
Real estate taxes | 88,757 | 84,666 | 4,091 | 4.8 | % | ||||||||||
Land rights and ground lease expense | 28,358 | 24,005 | 4,353 | 18.1 | % | ||||||||||
General and administrative | 71,128 | 63,151 | 7,977 | 12.6 | % | ||||||||||
Depreciation | 137,093 | 113,480 | 23,613 | 20.8 | % | ||||||||||
Goodwill impairment charges | 59,454 | — | 59,454 | N/A | |||||||||||
Total operating expenses | $ | 461,917 | $ | 365,789 | $ | 96,128 | 26.3 | % |
Percentage | |||||||||||||||
Year Ended December 31, | 2017 | 2016 | Variance | Variance | |||||||||||
Gaming, food, beverage and other | $ | 80,487 | $ | 82,463 | $ | (1,976 | ) | (2.4 | )% | ||||||
Real estate taxes | 84,666 | 69,448 | 15,218 | 21.9 | % | ||||||||||
Land rights and ground lease expense | 24,005 | 14,799 | 9,206 | 62.2 | % | ||||||||||
General and administrative | 63,151 | 71,368 | (8,217 | ) | (11.5 | )% | |||||||||
Depreciation | 113,480 | 109,554 | 3,926 | 3.6 | % | ||||||||||
Total operating expenses | $ | 365,789 | $ | 347,632 | $ | 18,157 | 5.2 | % |
Percentage | |||||||||||||||
Year Ended December 31, | 2018 | 2017 | Variance | Variance | |||||||||||
Interest expense | $ | (247,684 | ) | $ | (217,068 | ) | $ | (30,616 | ) | (14.1 | )% | ||||
Interest income | 1,827 | 1,935 | (108 | ) | (5.6 | )% | |||||||||
Losses on debt extinguishment | $ | (3,473 | ) | $ | — | $ | (3,473 | ) | N/A | ||||||
Total other expenses | $ | (249,330 | ) | $ | (215,133 | ) | $ | (34,197 | ) | (15.9 | )% |
Percentage | |||||||||||||||
Year Ended December 31, | 2017 | 2016 | Variance | Variance | |||||||||||
Interest expense | $ | (217,068 | ) | $ | (185,896 | ) | $ | (31,172 | ) | (16.8 | )% | ||||
Interest income | 1,935 | 2,123 | (188 | ) | (8.9 | )% | |||||||||
Total other expenses | $ | (215,133 | ) | $ | (183,773 | ) | $ | (31,360 | ) | (17.1 | )% |
Payments Due By Period | |||||||||||||||||||
Total | 2019 | 2020 - 2021 | 2022 - 2023 | 2024 and After | |||||||||||||||
(in thousands) | |||||||||||||||||||
Senior unsecured credit facility | |||||||||||||||||||
Principal | $ | 927,000 | $ | — | $ | 525,000 | $ | 402,000 | $ | — | |||||||||
Interest (1) | 131,495 | 41,879 | 65,977 | 23,639 | — | ||||||||||||||
4.875% senior unsecured notes due 2020 | |||||||||||||||||||
Principal | 1,000,000 | — | 1,000,000 | — | — | ||||||||||||||
Interest | 97,500 | 48,750 | 48,750 | — | — | ||||||||||||||
4.375% senior unsecured notes due 2021 | |||||||||||||||||||
Principal | 400,000 | — | 400,000 | — | — | ||||||||||||||
Interest | 43,750 | 17,500 | 26,250 | — | — | ||||||||||||||
5.375% senior unsecured notes due 2023 | |||||||||||||||||||
Principal | 500,000 | — | — | 500,000 | — | ||||||||||||||
Interest | 134,375 | 26,875 | 53,750 | 53,750 | — | ||||||||||||||
5.25% senior unsecured notes due 2025 | |||||||||||||||||||
Principal | 850,000 | — | — | — | 850,000 | ||||||||||||||
Interest | 290,063 | 44,625 | 89,250 | 89,250 | 66,938 | ||||||||||||||
5.375% senior unsecured notes due 2026 | |||||||||||||||||||
Principal | 975,000 | — | — | — | 975,000 | ||||||||||||||
Interest | 393,048 | 52,406 | 104,813 | 104,813 | 131,016 | ||||||||||||||
5.75% senior unsecured notes due 2028 | |||||||||||||||||||
Principal | 500,000 | — | — | — | 500,000 | ||||||||||||||
Interest | 273,125 | 28,750 | 57,500 | 57,500 | 129,375 | ||||||||||||||
5.30% senior unsecured notes due 2029 | |||||||||||||||||||
Principal | 750,000 | — | — | — | 750,000 | ||||||||||||||
Interest | 409,535 | 31,910 | 79,500 | 79,500 | 218,625 | ||||||||||||||
Capital lease obligations | 1,112 | 123 | 264 | 291 | 434 | ||||||||||||||
Operating leases (2) | 616,886 | 15,519 | 30,201 | 30,031 | 541,135 | ||||||||||||||
Other liabilities reflected in the Company's consolidated balance sheets (3) | 542 | 542 | — | — | — | ||||||||||||||
Total | $ | 8,293,431 | $ | 308,879 | $ | 2,481,255 | $ | 1,340,774 | $ | 4,162,523 |
(1) | The interest rates associated with the variable rate components of our senior unsecured credit facility are estimated, reflected of forward LIBOR curves plus the spread over LIBOR of 150 basis points. The contractual amounts to be paid on our variable rate obligations are affected by changes in market interest rates and changes in our spreads which are based on our leverage ratios. Future changes in such ratios will impact the contractual amounts to be paid. |
Total Amounts Committed | 2019 | 2020 - 2021 | 2022 - 2023 | 2024 and After | ||||||||||||
(in thousands) | ||||||||||||||||
Letters of Credit (1) | $ | 395 | $ | 395 | — | — | — | |||||||||
Total | $ | 395 | $ | 395 | — | — | — |
(1) | The available balance under the revolving credit portion of our senior unsecured credit facility is reduced by outstanding letters of credit. |
01/01/19- 12/31/19 | 1/01/20- 12/31/20 | 1/01/21- 12/31/21 | 1/01/22- 12/31/22 | 1/01/23- 12/31/23 | Thereafter | Total | Fair Value at 12/31/2018 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Long-term debt: | |||||||||||||||||||||||||||||||
Fixed rate | $ | — | $ | 1,000,000 | $ | 400,000 | $ | — | $ | 500,000 | $ | 3,075,000 | $ | 4,975,000 | $ | 4,958,455 | |||||||||||||||
Average interest rate | 4.88% | 4.38% | 5.38% | 5.38% | |||||||||||||||||||||||||||
Variable rate | $ | — | $ | — | $ | 525,000 | $ | — | $ | 402,000 | $ | — | $ | 927,000 | $ | 909,308 | |||||||||||||||
Average interest rate (1) | 4.29% | 4.14% |
December 31, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Real estate investments, net | $ | 7,331,460 | $ | 3,662,045 | |||
Land rights, net | 673,207 | 640,148 | |||||
Property and equipment, used in operations, net | 100,884 | 108,293 | |||||
Mortgage loans receivable | 303,684 | — | |||||
Investment in direct financing lease, net | — | 2,637,639 | |||||
Cash and cash equivalents | 25,783 | 29,054 | |||||
Prepaid expenses | 30,967 | 8,452 | |||||
Goodwill | 16,067 | 75,521 | |||||
Other intangible assets | 9,577 | 9,577 | |||||
Loan receivable | 13,000 | 13,000 | |||||
Deferred tax assets | 5,178 | 4,478 | |||||
Other assets | 67,486 | 58,675 | |||||
Total assets | $ | 8,577,293 | $ | 7,246,882 | |||
Liabilities | |||||||
Accounts payable | $ | 2,511 | $ | 715 | |||
Accrued expenses | 30,297 | 7,913 | |||||
Accrued interest | 45,261 | 33,241 | |||||
Accrued salaries and wages | 17,010 | 10,809 | |||||
Gaming, property, and other taxes | 42,879 | 35,399 | |||||
Long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts | 5,853,497 | 4,442,880 | |||||
Deferred rental revenue | 293,911 | 232,023 | |||||
Deferred tax liabilities | 261 | 244 | |||||
Other liabilities | 26,059 | 25,411 | |||||
Total liabilities | 6,311,686 | 4,788,635 | |||||
Commitments and Contingencies (Note 11) | |||||||
Shareholders’ equity | |||||||
Preferred stock ($.01 par value, 50,000,000 shares authorized, no shares issued or outstanding at December 31, 2018 and December 31, 2017) | — | — | |||||
Common stock ($.01 par value, 500,000,000 shares authorized, 214,211,932 and 212,717,549 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively) | 2,142 | 2,127 | |||||
Additional paid-in capital | 3,952,503 | 3,933,829 | |||||
Accumulated deficit | (1,689,038 | ) | (1,477,709 | ) | |||
Total shareholders’ equity | 2,265,607 | 2,458,247 | |||||
Total liabilities and shareholders’ equity | $ | 8,577,293 | $ | 7,246,882 |
Year ended December 31, | 2018 | 2017 | 2016 | |||||||||
Revenues | ||||||||||||
Rental income | $ | 747,654 | $ | 671,190 | $ | 567,444 | ||||||
Income from direct financing lease | 81,119 | 74,333 | 48,917 | |||||||||
Interest income from mortgaged real estate | 6,943 | — | — | |||||||||
Real estate taxes paid by tenants | 87,466 | 83,698 | 67,843 | |||||||||
Total income from real estate | 923,182 | 829,221 | 684,204 | |||||||||
Gaming, food, beverage and other | 132,545 | 142,086 | 144,051 | |||||||||
Total revenues | 1,055,727 | 971,307 | 828,255 | |||||||||
Operating expenses | ||||||||||||
Gaming, food, beverage and other | 77,127 | 80,487 | 82,463 | |||||||||
Real estate taxes | 88,757 | 84,666 | 69,448 | |||||||||
Land rights and ground lease expense | 28,358 | 24,005 | 14,799 | |||||||||
General and administrative | 71,128 | 63,151 | 71,368 | |||||||||
Depreciation | 137,093 | 113,480 | 109,554 | |||||||||
Goodwill impairment charges | 59,454 | — | — | |||||||||
Total operating expenses | 461,917 | 365,789 | 347,632 | |||||||||
Income from operations | 593,810 | 605,518 | 480,623 | |||||||||
Other income (expenses) | ||||||||||||
Interest expense | (247,684 | ) | (217,068 | ) | (185,896 | ) | ||||||
Interest income | 1,827 | 1,935 | 2,123 | |||||||||
Losses on debt extinguishment | (3,473 | ) | — | — | ||||||||
Total other expenses | (249,330 | ) | (215,133 | ) | (183,773 | ) | ||||||
Income before income taxes | 344,480 | 390,385 | 296,850 | |||||||||
Income tax expense | 4,964 | 9,787 | 7,545 | |||||||||
Net income | $ | 339,516 | $ | 380,598 | $ | 289,305 | ||||||
Earnings per common share: | ||||||||||||
Basic earnings per common share | $ | 1.59 | $ | 1.80 | $ | 1.62 | ||||||
Diluted earnings per common share | $ | 1.58 | $ | 1.79 | $ | 1.60 |
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total Shareholders’ Equity (Deficit) | |||||||||||||||
Shares | Amount | |||||||||||||||||
Balance, December 31, 2015 | 115,594,321 | $ | 1,156 | $ | 935,220 | $ | (1,189,890 | ) | $ | (253,514 | ) | |||||||
Issuance of common stock | 86,074,167 | 861 | 2,693,939 | — | 2,694,800 | |||||||||||||
Stock option activity | 5,870,282 | 59 | 115,416 | — | 115,475 | |||||||||||||
Restricted stock activity | 138,057 | 1 | 16,154 | — | 16,155 | |||||||||||||
Dividends paid ($2.32 per common share) | — | — | — | (428,352 | ) | (428,352 | ) | |||||||||||
Net income | — | — | — | 289,305 | 289,305 | |||||||||||||
Balance, December 31, 2016 | 207,676,827 | 2,077 | 3,760,729 | (1,328,937 | ) | 2,433,869 | ||||||||||||
Issuance of common stock | 3,864,872 | 38 | 139,376 | — | 139,414 | |||||||||||||
Stock option activity | 1,013,984 | 10 | 20,993 | — | 21,003 | |||||||||||||
Restricted stock activity | 161,866 | 2 | 12,731 | — | 12,733 | |||||||||||||
Dividends paid ($2.50 per common share) | — | — | — | (529,370 | ) | (529,370 | ) | |||||||||||
Net income | — | — | — | 380,598 | 380,598 | |||||||||||||
Balance, December 31, 2017 | 212,717,549 | 2,127 | 3,933,829 | (1,477,709 | ) | 2,458,247 | ||||||||||||
Stock option activity | 1,007,750 | 10 | 19,805 | — | 19,815 | |||||||||||||
Restricted stock activity | 486,633 | 5 | (1,131 | ) | — | (1,126 | ) | |||||||||||
Dividends paid ($2.57 per common share) | — | — | — | (550,435 | ) | (550,435 | ) | |||||||||||
Adoption of new revenue standard | — | — | — | (410 | ) | (410 | ) | |||||||||||
Net income | — | — | — | 339,516 | 339,516 | |||||||||||||
Balance, December 31, 2018 | 214,211,932 | $ | 2,142 | $ | 3,952,503 | $ | (1,689,038 | ) | $ | 2,265,607 |
Year ended December 31, | 2018 | 2017 | 2016 | |||||||||
Operating activities | ||||||||||||
Net income | $ | 339,516 | $ | 380,598 | $ | 289,305 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 148,365 | 123,835 | 115,717 | |||||||||
Amortization of debt issuance costs, bond premiums and original issuance discounts | 12,167 | 13,026 | 15,146 | |||||||||
Losses (gains) on dispositions of property | 309 | 530 | (455 | ) | ||||||||
Deferred income taxes | (522 | ) | (561 | ) | (1,535 | ) | ||||||
Stock-based compensation | 11,152 | 15,636 | 18,312 | |||||||||
Straight-line rent adjustments | 61,888 | 65,971 | 58,673 | |||||||||
Losses on debt extinguishment | 3,473 | — | — | |||||||||
Goodwill impairment charges | 59,454 | — | — | |||||||||
(Increase) decrease, | ||||||||||||
Prepaid expenses and other assets | (673 | ) | (5,332 | ) | 7,565 | |||||||
(Decrease), increase | ||||||||||||
Accounts payable | 1,796 | (421 | ) | 506 | ||||||||
Accrued expenses | (126 | ) | 411 | (4,672 | ) | |||||||
Accrued interest | 12,020 | (502 | ) | 16,120 | ||||||||
Accrued salaries and wages | 6,201 | 190 | (3,100 | ) | ||||||||
Gaming, property and other taxes | (149 | ) | (517 | ) | 913 | |||||||
Other liabilities | (438 | ) | 5,847 | 1,875 | ||||||||
Net cash provided by operating activities | 654,433 | 598,711 | 514,370 | |||||||||
Investing activities | ||||||||||||
Capital project expenditures | (20 | ) | (78 | ) | (330 | ) | ||||||
Capital maintenance expenditures | (4,284 | ) | (3,178 | ) | (3,111 | ) | ||||||
Proceeds from sale of property and equipment | 3,211 | 934 | 1,134 | |||||||||
Principal payments on loan receivable | — | 13,200 | 3,150 | |||||||||
Acquisition of real estate assets | (1,243,466 | ) | (83,252 | ) | (3,267,992 | ) | ||||||
Originations of mortgage loans receivable | (303,684 | ) | — | — | ||||||||
Collections of principal payments on investment in direct financing lease | 38,459 | 73,072 | 48,533 | |||||||||
Net cash (used in) provided by investing activities | (1,509,784 | ) | 698 | (3,218,616 | ) | |||||||
Financing activities | ||||||||||||
Dividends paid | (550,435 | ) | (529,370 | ) | (428,352 | ) | ||||||
Proceeds from exercise of options, net of taxes paid related to shares withheld for tax purposes on restricted stock award vestings | 7,537 | 18,157 | 113,484 | |||||||||
Proceeds from issuance of common stock, net of issuance costs | — | 139,414 | 870,810 | |||||||||
Proceeds from issuance of long-term debt | 2,593,405 | 100,000 | 2,552,000 | |||||||||
Financing costs | (32,426 | ) | — | (31,911 | ) | |||||||
Repayments of long-term debt | (1,164,117 | ) | (335,112 | ) | (377,104 | ) | ||||||
Premium and related costs paid on tender of senior unsecured notes | (1,884 | ) | — | — | ||||||||
Net cash provided by (used in) financing activities | 852,080 | (606,911 | ) | 2,698,927 | ||||||||
Net decrease in cash and cash equivalents | (3,271 | ) | (7,502 | ) | (5,319 | ) | ||||||
Cash and cash equivalents at beginning of period | 29,054 | 36,556 | 41,875 | |||||||||
Cash and cash equivalents at end of period | $ | 25,783 | $ | 29,054 | $ | 36,556 |
• | Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. |
• | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals. |
• | Level 3: Unobservable inputs that reflect the reporting entity's own assumptions, as there is little, if any, related market activity. |
December 31, 2018 | December 31, 2017 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 25,783 | $ | 25,783 | $ | 29,054 | $ | 29,054 | |||||||
Deferred compensation plan assets | 22,709 | 22,709 | 22,617 | 22,617 | |||||||||||
Mortgage loans receivable | 303,684 | 303,684 | — | — | |||||||||||
Financial liabilities: | |||||||||||||||
Long-term debt: | |||||||||||||||
Senior unsecured credit facility | 927,000 | 909,308 | 1,055,000 | 1,045,600 | |||||||||||
Senior unsecured notes | 4,975,000 | 4,958,455 | 3,425,000 | 3,574,688 |
Level 1 | Level 2 | Level 3 | Total Impairment Charges Recorded during the Year Ended December 31, 2018 | ||||||||||||
(in thousands) | |||||||||||||||
Assets: | |||||||||||||||
Goodwill | $ | — | $ | — | $ | 16,067 | $ | 59,454 | |||||||
Loan receivable | — | — | 13,000 | 1,500 | |||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | — | $ | — | $ | 29,067 | $ | 60,954 |
Land improvements | 15 years | |
Building and improvements | 5 to 31 years | |
Furniture, fixtures, and equipment | 3 to 31 years |
• | Projected revenues and operating cash flows; |
• | Theoretical construction costs and duration; |
• | Pre-opening expenses; |
• | Discounting that reflects the level of risk associated with receiving future cash flows attributable to the license; and |
• | Remaining useful life of the license |
Year Ended December 31, | ||||||||
2018 | 2017 | 2016 | ||||||
(in thousands) | ||||||||
Determination of shares: | ||||||||
Weighted-average common shares outstanding | 213,720 | 210,705 | 178,594 | |||||
Assumed conversion of dilutive employee stock-based awards | 206 | 644 | 1,699 | |||||
Assumed conversion of restricted stock awards | 80 | 155 | 171 | |||||
Assumed conversion of performance-based restricted stock awards | 773 | 1,248 | 158 | |||||
Diluted weighted-average common shares outstanding | 214,779 | 212,752 | 180,622 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands, except per share amounts) | |||||||||||
Calculation of basic EPS: | |||||||||||
Net income | $ | 339,516 | $ | 380,598 | $ | 289,305 | |||||
Less: Net income allocated to participating securities | (475 | ) | (622 | ) | (668 | ) | |||||
Net income attributable to common shareholders | $ | 339,041 | $ | 379,976 | $ | 288,637 | |||||
Weighted-average common shares outstanding | 213,720 | 210,705 | 178,594 | ||||||||
Basic EPS | $ | 1.59 | $ | 1.80 | $ | 1.62 | |||||
Calculation of diluted EPS: | |||||||||||
Net income | $ | 339,516 | $ | 380,598 | $ | 289,305 | |||||
Diluted weighted-average common shares outstanding | 214,779 | 212,752 | 180,622 | ||||||||
Diluted EPS | $ | 1.58 | $ | 1.79 | $ | 1.60 |
Real estate investments, net | $ | 948,217 | |
Land rights, net | 44,331 | ||
Total purchase price | $ | 992,548 |
Consideration | |||
Cash | $ | 2,955,090 | |
GLPI common stock | 1,823,991 | ||
Fair value of total consideration transferred | $ | 4,779,081 |
Real estate investments, net | $ | 1,422,547 | |
Land rights, net | 596,920 | ||
Investment in direct financing lease, net | 2,759,244 | ||
Prepaid expenses | 111 | ||
Other assets | 259 | ||
Total purchase price | $ | 4,779,081 |
December 31, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Land and improvements | $ | 2,552,475 | $ | 2,057,928 | |||
Building and improvements | 5,762,071 | 2,461,573 | |||||
Total real estate investments | 8,314,546 | 4,519,501 | |||||
Less accumulated depreciation | (983,086 | ) | (857,456 | ) | |||
Real estate investments, net | $ | 7,331,460 | $ | 3,662,045 |
December 31, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Land rights | $ | 700,997 | $ | 656,666 | |||
Less accumulated amortization | (27,790 | ) | (16,518 | ) | |||
Land rights, net | $ | 673,207 | $ | 640,148 |
Year ending December 31, | |||
2019 | $ | 12,359 | |
2020 | 12,359 | ||
2021 | 12,359 | ||
2022 | 12,359 | ||
2023 | 12,359 | ||
Thereafter | 611,412 | ||
Total | $ | 673,207 |
December 31, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Land and improvements | $ | 30,431 | $ | 30,276 | |||
Building and improvements | 116,776 | 116,286 | |||||
Furniture, fixtures, and equipment | 117,247 | 114,972 | |||||
Construction in progress | 284 | 8 | |||||
Total property and equipment | 264,738 | 261,542 | |||||
Less accumulated depreciation | (163,854 | ) | (153,249 | ) | |||
Property and equipment, net | $ | 100,884 | $ | 108,293 |
December 31, 2017 | |||
(in thousands) | |||
Minimum lease payments receivable | $ | 3,263,387 | |
Unguaranteed residual value | 689,811 | ||
Gross investment in direct financing lease | 3,953,198 | ||
Less: unearned income | (1,315,559 | ) | |
Investment in direct financing lease, net | $ | 2,637,639 |
TRS Properties Business Segment | |||
(in thousands) | |||
Balance at December 31, 2016 | $ | 75,521 | |
Acquisitions | — | ||
Impairment losses | — | ||
Balance at December 31, 2017 | $ | 75,521 | |
Acquisitions | — | ||
Impairment losses | (59,454 | ) | |
Balance at December 31, 2018 | $ | 16,067 |
December 31, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Unsecured $1,175 million revolver | $ | 402,000 | $ | — | |||
Unsecured term loan A | — | 230,000 | |||||
Unsecured term loan A-1 | 525,000 | 825,000 | |||||
$550 million 4.375% senior unsecured notes due November 2018 | — | 550,000 | |||||
$1,000 million 4.875% senior unsecured notes due November 2020 | 1,000,000 | 1,000,000 | |||||
$400 million 4.375% senior unsecured notes due April 2021 | 400,000 | 400,000 | |||||
$500 million 5.375% senior unsecured notes due November 2023 | 500,000 | 500,000 | |||||
$850 million 5.250% senior unsecured notes due June 2025 | 850,000 | — | |||||
$975 million 5.375% senior unsecured notes due April 2026 | 975,000 | 975,000 | |||||
$500 million 5.750% senior unsecured notes due June 2028 | 500,000 | — | |||||
$750 million 5.30% senior unsecured notes due January 2029 | 750,000 | — | |||||
Capital lease | 1,112 | 1,230 | |||||
Total long-term debt | 5,903,112 | 4,481,230 | |||||
Less: unamortized debt issuance costs, bond premiums and original issuance discounts | (49,615 | ) | (38,350 | ) | |||
Total long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts | $ | 5,853,497 | $ | 4,442,880 |
2019 | $ | 123 | |
2020 | 1,000,129 | ||
2021 | 925,135 | ||
2022 | 142 | ||
2023 | 902,149 | ||
Over 5 years | 3,075,434 | ||
Total minimum payments | $ | 5,903,112 |
Year ending December 31, (1) | |||
2019 | $ | 15,519 | |
2020 | 15,159 | ||
2021 | 15,042 | ||
2022 | 15,026 | ||
2023 | 15,005 | ||
Thereafter | 541,135 | ||
Total | $ | 616,886 |
Year ending December 31, | Future Rental Payments Receivable | Straight-Line Rent Adjustments | Future Base Ground Rents Receivable | Future Income to be Recognized Related to Operating Leases | |||||||||||
2019 | $ | 959,797 | $ | (34,574 | ) | $ | 13,403 | $ | 938,626 | ||||||
2020 | 920,129 | (2,567 | ) | 13,408 | 930,970 | ||||||||||
2021 | 854,210 | 21,786 | 13,414 | 889,410 | |||||||||||
2022 | 854,210 | 21,786 | 13,420 | 889,416 | |||||||||||
2023 | 854,210 | 21,786 | 13,425 | 889,421 | |||||||||||
Thereafter | 11,146,434 | 265,694 | 471,598 | 11,883,726 | |||||||||||
Total | $ | 15,588,990 | $ | 293,911 | $ | 538,668 | $ | 16,421,569 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
Slot machines | $ | 111,315 | $ | 118,998 | $ | 119,390 | |||||
Table games | 15,528 | 17,218 | 18,069 | ||||||||
Poker | 1,114 | 1,182 | 1,135 | ||||||||
Food, beverage and other | 8,762 | 9,468 | 11,067 | ||||||||
Promotional allowances | (4,174 | ) | (4,780 | ) | (5,610 | ) | |||||
Total gaming, food, beverage and other revenue | $ | 132,545 | $ | 142,086 | $ | 144,051 |
Year ended December 31, | 2018 | 2017 | |||||
(in thousands) | |||||||
Deferred tax assets: | |||||||
Accrued expenses | $ | 1,416 | $ | 1,597 | |||
Property and equipment | 5,405 | 4,823 | |||||
Interest expense | 313 | — | |||||
Net deferred tax assets | 7,134 | 6,420 | |||||
Deferred tax liabilities: | |||||||
Property and equipment | (757 | ) | (902 | ) | |||
Intangibles | (1,460 | ) | (1,284 | ) | |||
Net deferred tax liabilities | (2,217 | ) | (2,186 | ) | |||
Net: | $ | 4,917 | $ | 4,234 |
Year ended December 31, | 2018 | 2017 | 2016 | ||||||||
(in thousands) | |||||||||||
Current tax expense | |||||||||||
Federal | $ | 2,856 | $ | 7,039 | $ | 6,004 | |||||
State | 2,630 | 3,309 | 3,076 | ||||||||
Total current | 5,486 | 10,348 | 9,080 | ||||||||
Deferred tax (benefit) expense | |||||||||||
Federal | (512 | ) | (166 | ) | (1,324 | ) | |||||
State | (10 | ) | (395 | ) | (211 | ) | |||||
Total deferred | (522 | ) | (561 | ) | (1,535 | ) | |||||
Total provision | $ | 4,964 | $ | 9,787 | $ | 7,545 |
Year ended December 31, | 2018 | 2017 | 2016 | |||||
Percent of pretax income | ||||||||
U.S. federal statutory income tax rate | 21.0 | % | 35.0 | % | 35.0 | % | ||
State and local income taxes | 0.6 | % | 0.6 | % | 0.7 | % | ||
Federal tax rate change | — | % | 0.5 | % | — | % | ||
REIT conversion benefit | (23.8 | )% | (33.6 | )% | (33.2 | )% | ||
Goodwill impairment charges | 3.6 | % | — | % | — | % | ||
1.4 | % | 2.5 | % | 2.5 | % |
Year ended December 31, | 2018 | 2017 | 2016 | ||||||||
(in thousands) | |||||||||||
Amount based upon pretax income | |||||||||||
U.S. federal statutory income tax | $ | 72,341 | $ | 136,636 | $ | 103,897 | |||||
State and local income taxes | 2,246 | 2,284 | 2,039 | ||||||||
Federal tax rate change | — | 1,818 | — | ||||||||
REIT conversion benefit | (82,151 | ) | (130,876 | ) | (98,459 | ) | |||||
Goodwill impairment charges | 12,485 | — | — | ||||||||
Permanent differences | 19 | 49 | 44 | ||||||||
Other miscellaneous items | 24 | (124 | ) | 24 | |||||||
$ | 4,964 | $ | 9,787 | $ | 7,545 |
Declaration Date | Shareholder Record Date | Securities Class | Dividend Per Share | Period Covered | Distribution Date | Dividend Amount | ||||||||||
(in thousands) | ||||||||||||||||
2018 | ||||||||||||||||
February 1, 2018 | March 9, 2018 | Common Stock | $ | 0.63 | First Quarter 2018 | March 23, 2018 | $ | 134,490 | ||||||||
April 24, 2018 | June 15, 2018 | Common Stock | $ | 0.63 | Second Quarter 2018 | June 29, 2018 | $ | 134,631 | ||||||||
July 31, 2018 | September 7, 2018 | Common Stock | $ | 0.63 | Third Quarter 2018 | September 21, 2018 | $ | 134,844 | ||||||||
October 12, 2018 | December 14, 2018 | Common Stock | $ | 0.68 | Fourth Quarter 2018 | December 28, 2018 | $ | 145,627 | ||||||||
2017 | ||||||||||||||||
February 1, 2017 | March 13, 2017 | Common Stock | $ | 0.62 | First Quarter 2017 | March 24, 2017 | $ | 129,007 | ||||||||
April 25, 2017 | June 16, 2017 | Common Stock | $ | 0.62 | Second Quarter 2017 | June 30, 2017 | $ | 131,554 | ||||||||
July 25, 2017 | September 8, 2017 | Common Stock | $ | 0.63 | Third Quarter 2017 | September 22, 2017 | $ | 133,936 | ||||||||
October 19, 2017 | December 1, 2017 | Common Stock | $ | 0.63 | Fourth Quarter 2017 | December 15, 2017 | $ | 133,942 | ||||||||
2016 | ||||||||||||||||
January 29, 2016 | February 22, 2016 | Common Stock | $ | 0.56 | First Quarter 2016 | March 25, 2016 | $ | 65,345 | ||||||||
April 25, 2016 | June 2, 2016 | Common Stock | $ | 0.56 | Second Quarter 2016 | June 17, 2016 | $ | 113,212 | ||||||||
August 3, 2016 | September 12, 2016 | Common Stock | $ | 0.60 | Third Quarter 2016 | September 23, 2016 | $ | 124,262 | ||||||||
November 4, 2016 | December 5, 2016 | Common Stock | $ | 0.60 | Fourth Quarter 2016 | December 16, 2016 | $ | 124,466 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in dollars per share) | |||||||||||
Qualified dividends | $ | 0.0391 | $ | 0.0543 | $ | 0.1050 | |||||
Non-qualified dividends | 2.2955 | 2.2436 | 2.0746 | ||||||||
Capital gains | 0.0270 | 0.0371 | 0.0624 | ||||||||
Non-taxable return of capital | 0.2084 | 0.1650 | 0.0780 | ||||||||
Total distributions per common share | $ | 2.57 | $ | 2.50 | $ | 2.32 | |||||
Percentage classified as qualified dividends | 1.52 | % | 2.17 | % | 4.53 | % | |||||
Percentage classified as non-qualified dividends | 89.32 | % | 89.75 | % | 89.42 | % | |||||
Percentage classified as capital gains | 1.05 | % | 1.48 | % | 2.69 | % | |||||
Percentage classified as non-taxable return of capital | 8.11 | % | 6.60 | % | 3.36 | % | |||||
100.00 | % | 100.00 | % | 100.00 | % |
Number of Option Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | ||||||||||
Outstanding at December 31, 2017 | 1,040,745 | $ | 19.80 | ||||||||||
Exercised | (1,012,508 | ) | 19.74 | ||||||||||
Canceled | (1,438 | ) | 17.33 | ||||||||||
Outstanding at December 31, 2018 | 26,799 | $ | 22.09 | 0.01 | $ | 272 |
Number of Award Shares | Weighted Average Grant-Date Fair Value | |||||
Outstanding at December 31, 2016 | 413,242 | $ | 30.59 | |||
Granted | 184,791 | $ | 30.89 | |||
Released | (251,313 | ) | $ | 32.05 | ||
Canceled | (1,976 | ) | $ | 30.37 | ||
December 31, 2017 | 344,744 | $ | 29.69 | |||
Granted | 283,183 | $ | 23.34 | |||
Released | (273,286 | ) | $ | 18.16 | ||
Canceled (1) | (54,999 | ) | $ | 33.34 | ||
Outstanding at December 31, 2018 | 299,642 | $ | 33.53 |
Number of Performance-Based Award Shares | Weighted Average Grant-Date Fair Value | |||||
Outstanding at December 31, 2016 | 1,106,000 | $ | 17.25 | |||
Granted | 558,000 | $ | 17.95 | |||
Released | — | $ | — | |||
Canceled | — | $ | — | |||
December 31, 2017 | 1,664,000 | $ | 17.49 | |||
Granted | 556,000 | $ | 20.64 | |||
Released | (548,000 | ) | $ | 17.29 | ||
Canceled (1) | (330,000 | ) | $ | 18.60 | ||
Outstanding at December 31, 2018 | 1,342,000 | $ | 18.60 |
GLP Capital | TRS Properties | Eliminations (1) | Total | |||||||||||||
(in thousands) | ||||||||||||||||
For the year ended December 31, 2018 | ||||||||||||||||
Total revenues | $ | 923,182 | $ | 132,545 | $ | — | $ | 1,055,727 | ||||||||
Income (loss) from operations | 630,122 | (36,312 | ) | — | 593,810 | |||||||||||
Interest expense | 247,684 | 10,406 | (10,406 | ) | 247,684 | |||||||||||
Income (loss) before income taxes | 391,196 | (46,716 | ) | — | 344,480 | |||||||||||
Income tax expense | 855 | 4,109 | — | 4,964 | ||||||||||||
Net income (loss) | 390,341 | (50,825 | ) | — | 339,516 | |||||||||||
Depreciation | 127,696 | 9,397 | — | 137,093 | ||||||||||||
Capital project expenditures | 20 | — | — | 20 | ||||||||||||
Capital maintenance expenditures | 55 | 4,229 | — | 4,284 | ||||||||||||
For the year ended December 31, 2017 | ||||||||||||||||
Total revenues | $ | 829,221 | $ | 142,086 | $ | — | $ | 971,307 | ||||||||
Income from operations | 578,661 | 26,857 | — | 605,518 | ||||||||||||
Interest expense | 217,068 | 10,406 | (10,406 | ) | 217,068 | |||||||||||
Income before income taxes | 373,931 | 16,454 | — | 390,385 | ||||||||||||
Income tax expense | 1,099 | 8,688 | — | 9,787 | ||||||||||||
Net income | 372,832 | 7,766 | — | 380,598 | ||||||||||||
Depreciation | 102,652 | 10,828 | — | 113,480 | ||||||||||||
Capital project expenditures | 78 | — | — | 78 | ||||||||||||
Capital maintenance expenditures | — | 3,178 | — | 3,178 | ||||||||||||
For the year ended December 31, 2016 | ||||||||||||||||
Total revenues | $ | 684,204 | $ | 144,051 | $ | — | $ | 828,255 | ||||||||
Income from operations | 454,682 | 25,941 | — | 480,623 | ||||||||||||
Interest expense | 185,896 | 10,406 | (10,406 | ) | 185,896 | |||||||||||
Income before income taxes | 281,311 | 15,539 | — | 296,850 | ||||||||||||
Income tax expense | 1,016 | 6,529 | — | 7,545 | ||||||||||||
Net income | 280,295 | 9,010 | — | 289,305 | ||||||||||||
Depreciation | 98,171 | 11,383 | — | 109,554 | ||||||||||||
Capital project expenditures | 229 | 101 | — | 330 | ||||||||||||
Capital maintenance expenditures | — | 3,111 | — | 3,111 | ||||||||||||
Balance sheet at December 31, 2018 | ||||||||||||||||
Total assets | $ | 8,441,345 | $ | 135,948 | $ | — | $ | 8,577,293 | ||||||||
Balance sheet at December 31, 2017 | ||||||||||||||||
Total assets | $ | 7,045,747 | $ | 201,135 | $ | — | $ | 7,246,882 |
Fiscal Quarter | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
2018 | |||||||||||||||||
Total revenues | $ | 244,050 | $ | 254,221 | $ | 254,139 | $ | 303,317 | (1 | ) | |||||||
Income from operations | 151,851 | 153,241 | 164,834 | 123,884 | (1 | ) | |||||||||||
Net income | 96,772 | 91,998 | 104,815 | 45,931 | (2 | ) | |||||||||||
Earnings per common share: | |||||||||||||||||
Basic earnings per common share | $ | 0.45 | $ | 0.43 | $ | 0.49 | $ | 0.21 | |||||||||
Diluted earnings per common share | $ | 0.45 | $ | 0.43 | $ | 0.49 | $ | 0.21 | |||||||||
2017 | |||||||||||||||||
Total revenues | $ | 242,713 | $ | 243,391 | $ | 244,506 | $ | 240,697 | |||||||||
Income from operations | 150,006 | 152,696 | 152,699 | 150,117 | |||||||||||||
Net income | 93,991 | 96,334 | 97,014 | 93,259 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic earnings per common share | $ | 0.45 | $ | 0.46 | $ | 0.46 | $ | 0.44 | |||||||||
Diluted earnings per common share | $ | 0.45 | $ | 0.45 | $ | 0.45 | $ | 0.43 |
Year ended December 31, | 2018 | 2017 | 2016 | ||||||||
(in thousands) | |||||||||||
Cash paid for income taxes, net of refunds received | $ | 5,389 | $ | 11,646 | $ | 7,362 | |||||
Cash paid for interest | 229,779 | 204,442 | 154,527 |
Year ended December 31, | 2018 | 2017 | 2016 | ||||||||
(in thousands) | |||||||||||
Reclass of assets from investment in direct financing lease to real estate investments | $ | 2,599,180 | $ | — | $ | — | |||||
Equity raised to partially finance the original Pinnacle transaction | — | — | 1,823,991 |
At December 31, 2018 Consolidating Balance Sheet | Parent Guarantor | Subsidiary Issuers | Other Subsidiary Non-Issuers | Eliminations | Consolidated | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Real estate investments, net | $ | — | $ | 2,637,404 | $ | 4,694,056 | $ | — | $ | 7,331,460 | ||||||||||
Land rights, net | — | 100,938 | 572,269 | — | 673,207 | |||||||||||||||
Property and equipment, used in operations, net | — | 18,577 | 82,307 | — | 100,884 | |||||||||||||||
Mortgage loans receivable | — | 246,000 | 57,684 | — | 303,684 | |||||||||||||||
Investment in direct financing lease, net | — | — | — | — | — | |||||||||||||||
Cash and cash equivalents | — | 4,632 | 21,151 | — | 25,783 | |||||||||||||||
Prepaid expenses | — | 27,071 | 2,885 | 1,011 | 30,967 | |||||||||||||||
Goodwill | — | — | 16,067 | — | 16,067 | |||||||||||||||
Other intangible assets | — | — | 9,577 | — | 9,577 | |||||||||||||||
Loan receivable | — | — | 13,000 | — | 13,000 | |||||||||||||||
Intercompany loan receivable | — | 193,595 | — | (193,595 | ) | — | ||||||||||||||
Intercompany transactions and investment in subsidiaries | 2,265,607 | 5,247,229 | 2,697,241 | (10,210,077 | ) | — | ||||||||||||||
Deferred tax assets | — | — | 5,178 | — | 5,178 | |||||||||||||||
Other assets | — | 47,378 | 20,108 | — | 67,486 | |||||||||||||||
Total assets | $ | 2,265,607 | $ | 8,522,824 | $ | 8,191,523 | $ | (10,402,661 | ) | $ | 8,577,293 | |||||||||
Liabilities | ||||||||||||||||||||
Accounts payable | $ | — | $ | 2,469 | $ | 42 | $ | — | $ | 2,511 | ||||||||||
Accrued expenses | — | 23,587 | 6,710 | — | 30,297 | |||||||||||||||
Accrued interest | — | 45,261 | — | — | 45,261 | |||||||||||||||
Accrued salaries and wages | — | 14,628 | 2,382 | — | 17,010 | |||||||||||||||
Gaming, property, and other taxes | — | 24,055 | 18,824 | — | 42,879 | |||||||||||||||
Income taxes | — | (2 | ) | (1,009 | ) | 1,011 | — | |||||||||||||
Long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts | — | 5,853,497 | — | — | 5,853,497 | |||||||||||||||
Intercompany loan payable | — | — | 193,595 | (193,595 | ) | — | ||||||||||||||
Deferred rental revenue | — | 269,185 | 24,726 | — | 293,911 | |||||||||||||||
Deferred tax liabilities | — | — | 261 | — | 261 | |||||||||||||||
Other liabilities | — | 24,536 | 1,523 | — | 26,059 | |||||||||||||||
Total liabilities | — | 6,257,216 | 247,054 | (192,584 | ) | 6,311,686 | ||||||||||||||
Shareholders’ equity (deficit) | ||||||||||||||||||||
Preferred stock ($.01 par value, 50,000,000 shares authorized, no shares issued or outstanding at December 31, 2018) | — | — | — | — | — | |||||||||||||||
Common stock ($.01 par value, 500,000,000 shares authorized, 214,211,932 shares issued and outstanding at December 31, 2018) | 2,142 | 2,142 | 2,142 | (4,284 | ) | 2,142 | ||||||||||||||
Additional paid-in capital | 3,952,503 | 3,952,506 | 9,832,830 | (13,785,336 | ) | 3,952,503 | ||||||||||||||
Retained accumulated (deficit) earnings | (1,689,038 | ) | (1,689,040 | ) | (1,890,503 | ) | 3,579,543 | (1,689,038 | ) | |||||||||||
Total shareholders’ equity (deficit) | 2,265,607 | 2,265,608 | 7,944,469 | (10,210,077 | ) | 2,265,607 | ||||||||||||||
Total liabilities and shareholders’ equity (deficit) | $ | 2,265,607 | $ | 8,522,824 | $ | 8,191,523 | $ | (10,402,661 | ) | $ | 8,577,293 |
Year ended December 31, 2018 Consolidating Statement of Income | Parent Guarantor | Subsidiary Issuers | Other Subsidiary Non-Issuers | Eliminations | Consolidated | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Rental income | $ | — | $ | 437,211 | $ | 310,443 | $ | — | $ | 747,654 | ||||||||||
Income from direct financing lease | — | — | 81,119 | — | 81,119 | |||||||||||||||
Interest income from mortgaged real estate | — | 5,590 | 1,353 | — | 6,943 | |||||||||||||||
Real estate taxes paid by tenants | — | 46,327 | 41,139 | — | 87,466 | |||||||||||||||
Total income from real estate | — | 489,128 | 434,054 | — | 923,182 | |||||||||||||||
Gaming, food, beverage and other | — | — | 132,545 | — | 132,545 | |||||||||||||||
Total revenues | — | 489,128 | 566,599 | — | 1,055,727 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Gaming, food, beverage and other | — | — | 77,127 | — | 77,127 | |||||||||||||||
Real estate taxes | — | 46,443 | 42,314 | — | 88,757 | |||||||||||||||
Land rights and ground lease expense | — | 10,156 | 18,202 | — | 28,358 | |||||||||||||||
General and administrative | — | 49,161 | 21,967 | — | 71,128 | |||||||||||||||
Depreciation | — | 97,632 | 39,461 | — | 137,093 | |||||||||||||||
Goodwill impairment charges | — | — | 59,454 | — | 59,454 | |||||||||||||||
Total operating expenses | — | 203,392 | 258,525 | — | 461,917 | |||||||||||||||
Income from operations | — | 285,736 | 308,074 | — | 593,810 | |||||||||||||||
Other income (expenses) | ||||||||||||||||||||
Interest expense | — | (247,684 | ) | — | — | (247,684 | ) | |||||||||||||
Interest income | — | 1,355 | 472 | — | 1,827 | |||||||||||||||
Losses on debt extinguishment | — | (3,473 | ) | — | — | (3,473 | ) | |||||||||||||
Intercompany dividends and interest | — | 460,044 | 10,280 | (470,324 | ) | — | ||||||||||||||
Total other expenses | — | 210,242 | 10,752 | (470,324 | ) | (249,330 | ) | |||||||||||||
Income before income taxes | — | 495,978 | 318,826 | (470,324 | ) | 344,480 | ||||||||||||||
Income tax expense | — | 855 | 4,109 | — | 4,964 | |||||||||||||||
Net income | $ | — | $ | 495,123 | $ | 314,717 | $ | (470,324 | ) | $ | 339,516 |
Year ended December 31, 2018 Consolidating Statement of Cash Flows | Parent Guarantor | Subsidiary Issuers | Other Subsidiary Non-Issuers | Eliminations | Consolidated | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income | $ | — | $ | 495,123 | $ | 314,717 | $ | (470,324 | ) | $ | 339,516 | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||
Depreciation and amortization | — | 99,678 | 48,687 | — | 148,365 | |||||||||||||||
Amortization of debt issuance costs, bond premiums and original issuance discounts | — | 12,167 | — | — | 12,167 | |||||||||||||||
Losses on dispositions of property | — | 75 | 234 | — | 309 | |||||||||||||||
Deferred income taxes | — | — | (522 | ) | — | (522 | ) | |||||||||||||
Stock-based compensation | — | 11,152 | — | — | 11,152 | |||||||||||||||
Straight-line rent adjustments | — | 49,166 | 12,722 | — | 61,888 | |||||||||||||||
Losses on debt extinguishment | — | 3,473 | — | — | 3,473 | |||||||||||||||
Goodwill impairment charges | — | — | 59,454 | — | 59,454 | |||||||||||||||
(Increase) decrease, | ||||||||||||||||||||
Prepaid expenses and other assets | — | (1,777 | ) | 477 | 627 | (673 | ) | |||||||||||||
Intercompany | — | 66 | (66 | ) | — | — | ||||||||||||||
(Decrease) increase, | ||||||||||||||||||||
Accounts payable | — | 1,851 | (55 | ) | — | 1,796 | ||||||||||||||
Accrued expenses | — | (205 | ) | 79 | — | (126 | ) | |||||||||||||
Accrued interest | — | 12,020 | — | — | 12,020 | |||||||||||||||
Accrued salaries and wages | — | 6,796 | (595 | ) | — | 6,201 | ||||||||||||||
Gaming, property and other taxes | — | (78 | ) | (71 | ) | — | (149 | ) | ||||||||||||
Income taxes | — | 304 | 323 | (627 | ) | — | ||||||||||||||
Other liabilities | — | 55 | (493 | ) | — | (438 | ) | |||||||||||||
Net cash provided by (used in) operating activities | — | 689,866 | 434,891 | (470,324 | ) | 654,433 | ||||||||||||||
Investing activities | ||||||||||||||||||||
Capital project expenditures | — | (20 | ) | — | — | (20 | ) | |||||||||||||
Capital maintenance expenditures | — | (55 | ) | (4,229 | ) | — | (4,284 | ) | ||||||||||||
Proceeds from sale of property and equipment | — | 3,195 | 16 | — | 3,211 | |||||||||||||||
Acquisition of real estate assets | — | (985,750 | ) | (257,716 | ) | — | (1,243,466 | ) | ||||||||||||
Originations of mortgage loans receivable | — | (246,000 | ) | (57,684 | ) | — | (303,684 | ) | ||||||||||||
Collection of principal payments on investment in direct financing lease | — | — | 38,459 | — | 38,459 | |||||||||||||||
Net cash used in investing activities | — | (1,228,630 | ) | (281,154 | ) | — | (1,509,784 | ) | ||||||||||||
Financing activities | ||||||||||||||||||||
Dividends paid | (550,435 | ) | — | — | — | (550,435 | ) | |||||||||||||
Proceeds from exercise of options, net of taxes paid related to shares withheld for tax purposes on restricted stock award vestings | 7,537 | — | — | — | 7,537 | |||||||||||||||
Proceeds from issuance of long-term debt | — | 2,593,405 | — | — | 2,593,405 | |||||||||||||||
Financing costs | — | (32,426 | ) | — | — | (32,426 | ) | |||||||||||||
Payments of long-term debt | — | (1,164,117 | ) | — | — | (1,164,117 | ) | |||||||||||||
Premium and related costs paid on tender of senior unsecured notes | — | (1,884 | ) | — | — | (1,884 | ) | |||||||||||||
Intercompany financing | 542,898 | (858,316 | ) | (154,906 | ) | 470,324 | — | |||||||||||||
Net cash provided by (used in) financing activities | — | 536,662 | (154,906 | ) | 470,324 | 852,080 | ||||||||||||||
Net decrease in cash and cash equivalents | — | (2,102 | ) | (1,169 | ) | — | (3,271 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 6,734 | 22,320 | — | 29,054 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 4,632 | $ | 21,151 | $ | — | $ | 25,783 |
At December 31, 2017 Consolidating Balance Sheet | Parent Guarantor | Subsidiary Issuers | Other Subsidiary Non-Issuers | Eliminations | Consolidated | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Real estate investments, net | $ | — | $ | 1,794,840 | $ | 1,867,205 | $ | — | $ | 3,662,045 | ||||||||||
Land rights, net | — | 58,635 | 581,513 | — | 640,148 | |||||||||||||||
Property and equipment, used in operations, net | — | 20,568 | 87,725 | — | 108,293 | |||||||||||||||
Investment in direct financing lease, net | — | — | 2,637,639 | — | 2,637,639 | |||||||||||||||
Cash and cash equivalents | — | 6,734 | 22,320 | — | 29,054 | |||||||||||||||
Prepaid expenses | — | 4,067 | 2,746 | 1,639 | 8,452 | |||||||||||||||
Goodwill | — | — | 75,521 | — | 75,521 | |||||||||||||||
Other intangible assets | — | — | 9,577 | — | 9,577 | |||||||||||||||
Loan receivable | — | — | 13,000 | — | 13,000 | |||||||||||||||
Intercompany loan receivable | — | 193,595 | — | (193,595 | ) | — | ||||||||||||||
Intercompany transactions and investment in subsidiaries | 2,458,247 | 5,087,893 | 2,959,174 | (10,505,314 | ) | — | ||||||||||||||
Deferred tax assets | — | — | 4,478 | — | 4,478 | |||||||||||||||
Other assets | — | 42,485 | 16,190 | — | 58,675 | |||||||||||||||
Total assets | $ | 2,458,247 | $ | 7,208,817 | $ | 8,277,088 | $ | (10,697,270 | ) | $ | 7,246,882 | |||||||||
Liabilities | ||||||||||||||||||||
Accounts payable | $ | — | $ | 619 | $ | 96 | $ | — | $ | 715 | ||||||||||
Accrued expenses | — | 672 | 7,241 | — | 7,913 | |||||||||||||||
Accrued interest | — | 33,241 | — | — | 33,241 | |||||||||||||||
Accrued salaries and wages | — | 7,832 | 2,977 | — | 10,809 | |||||||||||||||
Gaming, property, and other taxes | — | 21,135 | 14,264 | — | 35,399 | |||||||||||||||
Income taxes | — | (306 | ) | (1,333 | ) | 1,639 | — | |||||||||||||
Long-term debt, net of unamortized debt issuance costs | — | 4,442,880 | — | — | 4,442,880 | |||||||||||||||
Intercompany loan payable | — | — | 193,595 | (193,595 | ) | — | ||||||||||||||
Deferred rental revenue | — | 220,019 | 12,004 | — | 232,023 | |||||||||||||||
Deferred tax liabilities | — | — | 244 | — | 244 | |||||||||||||||
Other liabilities | — | 24,478 | 933 | — | 25,411 | |||||||||||||||
Total liabilities | — | 4,750,570 | 230,021 | (191,956 | ) | 4,788,635 | ||||||||||||||
Shareholders’ equity (deficit) | ||||||||||||||||||||
Preferred stock ($.01 par value, 50,000,000 shares authorized, no shares issued or outstanding at December 31, 2017) | — | — | — | — | — | |||||||||||||||
Common stock ($.01 par value, 500,000,000 shares authorized, 212,717,549 shares issued and outstanding at December 31, 2017) | 2,127 | 2,127 | 2,127 | (4,254 | ) | 2,127 | ||||||||||||||
Additional paid-in capital | 3,933,829 | 3,933,831 | 9,498,755 | (13,432,586 | ) | 3,933,829 | ||||||||||||||
Retained accumulated (deficit) earnings | (1,477,709 | ) | (1,477,711 | ) | (1,453,815 | ) | 2,931,526 | (1,477,709 | ) | |||||||||||
Total shareholders’ equity (deficit) | 2,458,247 | 2,458,247 | 8,047,067 | (10,505,314 | ) | 2,458,247 | ||||||||||||||
Total liabilities and shareholders’ equity (deficit) | $ | 2,458,247 | $ | 7,208,817 | $ | 8,277,088 | $ | (10,697,270 | ) | $ | 7,246,882 |
Year ended December 31, 2017 Consolidating Statement of Income | Parent Guarantor | Subsidiary Issuers | Other Subsidiary Non- Issuers | Eliminations | Consolidated | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Rental income | $ | — | $ | 398,070 | $ | 273,120 | $ | — | $ | 671,190 | ||||||||||
Income from direct financing lease | — | — | 74,333 | — | 74,333 | |||||||||||||||
Interest income from mortgaged real estate | — | — | — | — | — | |||||||||||||||
Real estate taxes paid by tenants | — | 43,672 | 40,026 | — | 83,698 | |||||||||||||||
Total income from real estate | — | 441,742 | 387,479 | — | 829,221 | |||||||||||||||
Gaming, food, beverage and other | — | — | 142,086 | — | 142,086 | |||||||||||||||
Total revenues | — | 441,742 | 529,565 | — | 971,307 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Gaming, food, beverage and other | — | — | 80,487 | — | 80,487 | |||||||||||||||
Real estate taxes | — | 43,755 | 40,911 | — | 84,666 | |||||||||||||||
Land rights and ground lease expense | — | 5,895 | 18,110 | — | 24,005 | |||||||||||||||
General and administrative | — | 39,863 | 23,288 | — | 63,151 | |||||||||||||||
Depreciation | — | 93,948 | 19,532 | — | 113,480 | |||||||||||||||
Total operating expenses | — | 183,461 | 182,328 | — | 365,789 | |||||||||||||||
Income from operations | — | 258,281 | 347,237 | — | 605,518 | |||||||||||||||
Other income (expenses) | ||||||||||||||||||||
Interest expense | — | (217,068 | ) | — | — | (217,068 | ) | |||||||||||||
Interest income | — | — | 1,935 | — | 1,935 | |||||||||||||||
Intercompany dividends and interest | — | 451,295 | 12,318 | (463,613 | ) | — | ||||||||||||||
Total other expenses | — | 234,227 | 14,253 | (463,613 | ) | (215,133 | ) | |||||||||||||
Income before income taxes | — | 492,508 | 361,490 | (463,613 | ) | 390,385 | ||||||||||||||
Income tax expense | — | 1,099 | 8,688 | — | 9,787 | |||||||||||||||
Net income | $ | — | $ | 491,409 | $ | 352,802 | $ | (463,613 | ) | $ | 380,598 |
Year ended December 31, 2017 Consolidating Statement of Cash Flows | Parent Guarantor | Subsidiary Issuers | Other Subsidiary Non-Issuers | Eliminations | Consolidated | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income | $ | — | $ | 491,409 | $ | 352,802 | $ | (463,613 | ) | $ | 380,598 | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||
Depreciation | — | 95,058 | 28,777 | — | 123,835 | |||||||||||||||
Amortization of debt issuance costs | — | 13,026 | — | — | 13,026 | |||||||||||||||
Losses on dispositions of property | — | — | 530 | — | 530 | |||||||||||||||
Deferred income taxes | — | — | (561 | ) | — | (561 | ) | |||||||||||||
Stock-based compensation | — | 15,636 | — | — | 15,636 | |||||||||||||||
Straight-line rent adjustments | — | 56,815 | 9,156 | — | 65,971 | |||||||||||||||
Decrease (increase), | ||||||||||||||||||||
Prepaid expenses and other assets | — | (5,703 | ) | 1,268 | (897 | ) | (5,332 | ) | ||||||||||||
Intercompany | — | 317 | (317 | ) | — | — | ||||||||||||||
(Decrease) increase, | 0 | 0 | 0 | |||||||||||||||||
Accounts payable | — | 148 | (569 | ) | — | (421 | ) | |||||||||||||
Accrued expenses | — | 103 | 308 | — | 411 | |||||||||||||||
Accrued interest | — | (502 | ) | — | — | (502 | ) | |||||||||||||
Accrued salaries and wages | — | (79 | ) | 269 | — | 190 | ||||||||||||||
Gaming, property and other taxes | — | (505 | ) | (12 | ) | — | (517 | ) | ||||||||||||
Income taxes | — | (325 | ) | (572 | ) | 897 | — | |||||||||||||
Other liabilities | — | 6,591 | (744 | ) | — | 5,847 | ||||||||||||||
Net cash provided by (used in) operating activities | — | 671,989 | 390,335 | (463,613 | ) | 598,711 | ||||||||||||||
Investing activities | ||||||||||||||||||||
Capital project expenditures | — | (78 | ) | — | — | (78 | ) | |||||||||||||
Capital maintenance expenditures | — | — | (3,178 | ) | — | (3,178 | ) | |||||||||||||
Proceeds from sale of property and equipment | — | 10 | 924 | — | 934 | |||||||||||||||
Principal payments on loan receivable | — | — | 13,200 | — | 13,200 | |||||||||||||||
Acquisition of real estate assets | — | (82,866 | ) | (386 | ) | — | (83,252 | ) | ||||||||||||
Collection of principal payments on investment in direct financing lease | — | — | 73,072 | — | 73,072 | |||||||||||||||
Net cash (used in) provided by investing activities | — | (82,934 | ) | 83,632 | — | 698 | ||||||||||||||
Financing activities | ||||||||||||||||||||
Dividends paid | (529,370 | ) | — | — | — | (529,370 | ) | |||||||||||||
Proceeds from exercise of options, net of taxes paid related to shares withheld for tax purposes on restricted stock award vestings | 18,157 | — | — | — | 18,157 | |||||||||||||||
Proceeds from issuance of common stock, net of issuance costs | 139,414 | — | — | — | 139,414 | |||||||||||||||
Proceeds from issuance of long-term debt | — | 100,000 | — | — | 100,000 | |||||||||||||||
Payments of long-term debt | — | (335,112 | ) | — | — | (335,112 | ) | |||||||||||||
Intercompany financing | 371,799 | (358,983 | ) | (476,429 | ) | 463,613 | — | |||||||||||||
Net cash (used in) provided by financing activities | — | (594,095 | ) | (476,429 | ) | 463,613 | (606,911 | ) | ||||||||||||
Net decrease in cash and cash equivalents | — | (5,040 | ) | (2,462 | ) | — | (7,502 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 11,774 | 24,782 | — | 36,556 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 6,734 | $ | 22,320 | $ | — | $ | 29,054 |
Year ended December 31, 2016 Consolidating Statement of Income | Parent Guarantor | Subsidiary Issuers | Other Subsidiary Non- Issuers | Eliminations | Consolidated | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Rental income | $ | — | $ | 383,553 | $ | 183,891 | $ | — | $ | 567,444 | ||||||||||
Income from direct financing lease | — | — | 48,917 | — | 48,917 | |||||||||||||||
Interest income from mortgaged real estate | — | — | — | — | — | |||||||||||||||
Real estate taxes paid by tenants | — | 41,441 | 26,402 | — | 67,843 | |||||||||||||||
Total income from real estate | — | 424,994 | 259,210 | — | 684,204 | |||||||||||||||
Gaming, food, beverage and other | — | — | 144,051 | — | 144,051 | |||||||||||||||
Total revenues | — | 424,994 | 403,261 | — | 828,255 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Gaming, food, beverage and other | — | — | 82,463 | — | 82,463 | |||||||||||||||
Real estate taxes | — | 41,510 | 27,938 | — | 69,448 | |||||||||||||||
Land rights and ground lease expense | — | 2,685 | 12,114 | — | 14,799 | |||||||||||||||
General and administrative | — | 48,452 | 22,916 | — | 71,368 | |||||||||||||||
Depreciation | — | 93,476 | 16,078 | — | 109,554 | |||||||||||||||
Total operating expenses | — | 186,123 | 161,509 | — | 347,632 | |||||||||||||||
Income from operations | — | 238,871 | 241,752 | — | 480,623 | |||||||||||||||
Other income (expenses) | ||||||||||||||||||||
Interest expense | — | (185,896 | ) | — | — | (185,896 | ) | |||||||||||||
Interest income | — | 169 | 1,954 | — | 2,123 | |||||||||||||||
Intercompany dividends and interest | — | 318,047 | 19,670 | (337,717 | ) | — | ||||||||||||||
Total other expenses | — | 132,320 | 21,624 | (337,717 | ) | (183,773 | ) | |||||||||||||
Income before income taxes | — | 371,191 | 263,376 | (337,717 | ) | 296,850 | ||||||||||||||
Income tax expense | — | 1,016 | 6,529 | — | 7,545 | |||||||||||||||
Net income | $ | — | $ | 370,175 | $ | 256,847 | $ | (337,717 | ) | $ | 289,305 |
Year ended December 31, 2016 Consolidating Statement of Cash Flows | Parent Guarantor | Subsidiary Issuers | Other Subsidiary Non-Issuers | Eliminations | Consolidated | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income | $ | — | $ | 370,175 | $ | 256,847 | $ | (337,717 | ) | $ | 289,305 | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||
Depreciation and amortization | — | 93,476 | 22,241 | — | 115,717 | |||||||||||||||
Amortization of debt issuance costs | — | 15,146 | — | — | 15,146 | |||||||||||||||
(Gains) losses on sales of property | — | (471 | ) | 16 | — | (455 | ) | |||||||||||||
Deferred income taxes | — | — | (1,535 | ) | — | (1,535 | ) | |||||||||||||
Stock-based compensation | — | 18,312 | — | — | 18,312 | |||||||||||||||
Straight-line rent adjustments | — | 55,825 | 2,848 | — | 58,673 | |||||||||||||||
(Increase) decrease, | ||||||||||||||||||||
Prepaid expenses and other assets | — | 6,939 | (1,554 | ) | 2,180 | 7,565 | ||||||||||||||
Intercompany | — | 21 | (21 | ) | — | — | ||||||||||||||
Increase (decrease), | 0 | 0 | 0 | |||||||||||||||||
Accounts payable | — | 119 | 387 | — | 506 | |||||||||||||||
Accrued expenses | — | (4,303 | ) | (369 | ) | — | (4,672 | ) | ||||||||||||
Accrued interest | — | 16,120 | — | — | 16,120 | |||||||||||||||
Accrued salaries and wages | — | (2,817 | ) | (283 | ) | — | (3,100 | ) | ||||||||||||
Gaming, property and other taxes | — | 899 | 14 | — | 913 | |||||||||||||||
Income taxes | — | 59 | 2,121 | (2,180 | ) | — | ||||||||||||||
Other liabilities | — | 1,589 | 286 | — | 1,875 | |||||||||||||||
Net cash provided by (used in) operating activities | — | 571,089 | 280,998 | (337,717 | ) | 514,370 | ||||||||||||||
Investing activities | ||||||||||||||||||||
Capital project expenditures | — | (229 | ) | (101 | ) | — | (330 | ) | ||||||||||||
Capital maintenance expenditures | — | — | (3,111 | ) | — | (3,111 | ) | |||||||||||||
Proceeds from sale of property and equipment | — | 897 | 237 | — | 1,134 | |||||||||||||||
Principal payments on loan receivable | — | — | 3,150 | — | 3,150 | |||||||||||||||
Acquisition of real estate | — | — | (3,267,992 | ) | — | (3,267,992 | ) | |||||||||||||
Collection of principal payments on investment in direct financing lease | — | — | 48,533 | — | 48,533 | |||||||||||||||
Net cash provided by (used in) investing activities | — | 668 | (3,219,284 | ) | — | (3,218,616 | ) | |||||||||||||
Financing activities | ||||||||||||||||||||
Dividends paid | (428,352 | ) | — | — | — | (428,352 | ) | |||||||||||||
Proceeds from exercise of options, net of taxes paid related to shares withheld for tax purposes on restricted stock award vestings | 113,484 | — | — | — | 113,484 | |||||||||||||||
Proceeds from issuance of common stock, net of issuance costs | 870,810 | — | — | — | 870,810 | |||||||||||||||
Proceeds from issuance of long-term debt | — | 2,552,000 | — | — | 2,552,000 | |||||||||||||||
Financing costs | — | (31,911 | ) | — | — | (31,911 | ) | |||||||||||||
Payments of long-term debt | — | (377,104 | ) | — | — | (377,104 | ) | |||||||||||||
Intercompany financing | (555,942 | ) | (2,711,684 | ) | 2,929,909 | 337,717 | — | |||||||||||||
Net cash (used in) provided by financing activities | — | (568,699 | ) | 2,929,909 | 337,717 | 2,698,927 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 3,058 | (8,377 | ) | — | (5,319 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | — | 8,716 | 33,159 | $ | — | 41,875 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 11,774 | $ | 24,782 | $ | — | $ | 36,556 |
Initial Cost to Company | Net Capitalized Costs (Retirements) Subsequent to Acquisition | Gross Amount at which Carried at Close of Period | Life on which Depreciation in Latest Income Statement is Computed | |||||||||||||||||||||||||||||||||||||
Original Date of Construction / Renovation | ||||||||||||||||||||||||||||||||||||||||
Description | Location | Encumbrances | Land and Improvements | Buildings and Improvements | Land and Improvements | Buildings and Improvements | Total (5) | Accumulated Depreciation | Date Acquired | |||||||||||||||||||||||||||||||
Rental Properties: | ||||||||||||||||||||||||||||||||||||||||
Hollywood Casino Lawrenceburg | Lawrenceburg, IN | $ | — | $ | 15,251 | $ | 342,393 | $ | (30 | ) | $ | 15,222 | $ | 342,392 | $ | 357,614 | $ | 137,260 | 1997/2009 | 11/1/2013 | 31 | |||||||||||||||||||
Hollywood Casino Aurora | Aurora, IL | — | 4,937 | 98,378 | (383 | ) | 4,936 | 97,996 | 102,932 | 64,968 | 1993/2002/ 2012 | 11/1/2013 | 30 | |||||||||||||||||||||||||||
Hollywood Casino Joliet | Joliet, IL | — | 19,214 | 101,104 | (20 | ) | 19,194 | 101,104 | 120,298 | 58,721 | 1992/2003/ 2010 | 11/1/2013 | 31 | |||||||||||||||||||||||||||
Argosy Casino Alton | Alton, IL | — | — | 6,462 | — | — | 6,462 | 6,462 | 4,453 | 1991/1999 | 11/1/2013 | 31 | ||||||||||||||||||||||||||||
Hollywood Casino Toledo | Toledo, OH | — | 12,003 | 144,093 | (201 | ) | 11,802 | 144,093 | 155,895 | 34,842 | 2012 | 11/1/2013 | 31 | |||||||||||||||||||||||||||
Hollywood Casino Columbus | Columbus, OH | — | 38,240 | 188,543 | 105 | 38,266 | 188,622 | 226,888 | 45,507 | 2012 | 11/1/2013 | 31 | ||||||||||||||||||||||||||||
Hollywood Casino at Charles Town Races | Charles Town, WV | — | 35,102 | 233,069 | — | 35,102 | 233,069 | 268,171 | 129,718 | 1997/2010 | 11/1/2013 | 31 | ||||||||||||||||||||||||||||
Hollywood Casino at Penn National Race Course | Grantville, PA | — | 25,500 | 161,810 | — | 25,500 | 161,810 | 187,310 | 74,989 | 2008/2010 | 11/1/2013 | 31 | ||||||||||||||||||||||||||||
M Resort | Henderson, NV | — | 66,104 | 126,689 | (436 | ) | 65,668 | 126,689 | 192,357 | 35,789 | 2009/2012 | 11/1/2013 | 30 | |||||||||||||||||||||||||||
Hollywood Casino Bangor | Bangor, ME | — | 12,883 | 84,257 | — | 12,883 | 84,257 | 97,140 | 31,965 | 2008/2012 | 11/1/2013 | 31 | ||||||||||||||||||||||||||||
Zia Park Casino | Hobbs, NM | — | 9,313 | 38,947 | — | 9,313 | 38,947 | 48,260 | 19,738 | 2005 | 11/1/2013 | 31 | ||||||||||||||||||||||||||||
Hollywood Casino Gulf Coast | Bay St. Louis, MS | — | 59,388 | 87,352 | (229 | ) | 59,176 | 87,335 | 146,511 | 50,152 | 1992/2006/ 2011 | 11/1/2013 | 40 | |||||||||||||||||||||||||||
Argosy Casino Riverside | Riverside, MO | — | 23,468 | 143,301 | (77 | ) | 23,391 | 143,301 | 166,692 | 63,166 | 1994/2007 | 11/1/2013 | 37 | |||||||||||||||||||||||||||
Hollywood Casino Tunica | Tunica, MS | — | 4,634 | 42,031 | — | 4,634 | 42,031 | 46,665 | 26,859 | 1994/2012 | 11/1/2013 | 31 | ||||||||||||||||||||||||||||
Boomtown Biloxi | Biloxi, MS | — | 3,423 | 63,083 | (137 | ) | 3,286 | 63,083 | 66,369 | 46,443 | 1994/2006 | 11/1/2013 | 15 | |||||||||||||||||||||||||||
Hollywood Casino St. Louis | Maryland Heights, MO | — | 44,198 | 177,063 | (3,049 | ) | 41,149 | 177,063 | 218,212 | 75,384 | 1997/2013 | 11/1/2013 | 13 | |||||||||||||||||||||||||||
Hollywood Casino at Dayton Raceway (2) | Dayton, OH | — | 3,211 | — | 86,288 | 3,211 | 86,288 | 89,499 | 12,165 | 2014 | 11/1/2013 | 31 | ||||||||||||||||||||||||||||
Hollywood Casino at Mahoning Valley Race Track (2) | Youngstown, OH | — | 5,683 | — | 94,314 | 5,833 | 94,164 | 99,997 | 13,018 | 2014 | 11/1/2013 | 31 | ||||||||||||||||||||||||||||
Resorts Casino Tunica | Tunica, MS | — | — | 12,860 | — | — | 12,860 | 12,860 | 2,058 | 1994/1996/ 2005/2014 | 5/1/2017 | 31 | ||||||||||||||||||||||||||||
1st Jackpot Casino | Tunica, MS | — | 161 | 10,100 | — | 161 | 10,100 | 10,261 | 608 | 1995 | 5/1/2017 | 31 | ||||||||||||||||||||||||||||
Ameristar Black Hawk (1) | Black Hawk, CO | — | 243,092 | 334,024 | — | 243,092 | 334,024 | 577,116 | 2,348 | 2000 | 4/28/2016 | 31 | ||||||||||||||||||||||||||||
Ameristar East Chicago (1) | East Chicago, IN | — | 4,198 | 123,430 | — | 4,198 | 123,430 | 127,628 | 998 | 1997 | 4/28/2016 | 31 | ||||||||||||||||||||||||||||
Belterra Casino Resort (1) | Florence, IN | — | 63,420 | 172,875 | — | 63,420 | 172,875 | 236,295 | 1,821 | 2000 | 4/28/2016 | 31 |
Ameristar Council Bluffs (1) | Council Bluffs, IA | — | 84,009 | 109,027 | — | 84,009 | 109,027 | 193,036 | 919 | 1996 | 4/28/2016 | 31 | ||||||||||||||||||||||||||||
L'Auberge Baton Rouge (1) | Baton Rouge, LA | — | 205,274 | 178,426 | — | 205,274 | 178,426 | 383,700 | 1,336 | 2012 | 4/28/2016 | 31 | ||||||||||||||||||||||||||||
Boomtown Bossier City (1) | Bossier City, LA | — | 79,022 | 107,067 | — | 79,022 | 107,067 | 186,089 | 833 | 2002 | 4/28/2016 | 31 | ||||||||||||||||||||||||||||
L'Auberge Lake Charles (1) | Lake Charles, LA | — | 14,831 | 310,877 | — | 14,831 | 310,877 | 325,708 | 2,657 | 2005 | 4/28/2016 | 31 | ||||||||||||||||||||||||||||
Boomtown New Orleans (1) | Boomtown, LA | — | 46,019 | 58,258 | — | 46,019 | 58,258 | 104,277 | 494 | 1994 | 4/28/2016 | 31 | ||||||||||||||||||||||||||||
Ameristar Vicksburg (1) | Vicksburg, MS | — | 128,068 | 96,106 | — | 128,068 | 96,106 | 224,174 | 971 | 1994 | 4/28/2016 | 31 | ||||||||||||||||||||||||||||
River City Casino & Hotel (1) | St Louis, MO | — | 8,117 | 221,038 | — | 8,117 | 221,038 | 229,155 | 1,711 | 2010 | 4/28/2016 | 31 | ||||||||||||||||||||||||||||
Ameristar Kansas City (1) | Kansas City, MO | — | 239,111 | 271,598 | — | 239,111 | 271,598 | 510,709 | 2,356 | 1997 | 4/28/2016 | 31 | ||||||||||||||||||||||||||||
Ameristar St. Charles (1) | St. Charles, MO | — | 375,597 | 437,908 | — | 375,596 | 437,908 | 813,504 | 3,141 | 1994 | 4/28/2016 | 31 | ||||||||||||||||||||||||||||
Jackpot Properties (1) | Jackpot, NV | — | 48,785 | 61,550 | — | 48,785 | 61,550 | 110,335 | 1,669 | 1954 | 4/28/2016 | 31 | ||||||||||||||||||||||||||||
Plainridge Park Casino | Plainridge, MA | — | 127,068 | 123,850 | — | 127,068 | 123,850 | 250,918 | 832 | 2015 | 10/15/2018 | 31 | ||||||||||||||||||||||||||||
The Meadows Racetrack and Casino | Washington, PA | — | 181,532 | 141,370 | 386 | 181,918 | 141,370 | 323,288 | 12,971 | 2006 | 9/9/2016 | 31 | ||||||||||||||||||||||||||||
Casino Queen | East St. Louis, IL | — | 70,716 | 70,014 | — | 70,716 | 70,014 | 140,730 | 14,348 | 1999 | 1/23/2014 | 31 | ||||||||||||||||||||||||||||
Tropicana Atlantic City | Atlantic City, NJ | — | 166,974 | 392,923 | — | 166,974 | 392,923 | 559,897 | 2,711 | 1981 | 10/1/2018 | 31 | ||||||||||||||||||||||||||||
Tropicana Evansville | Evansville, IN | — | 47,439 | 146,930 | — | 47,439 | 146,930 | 194,369 | 987 | 1995 | 10/1/2018 | 31 | ||||||||||||||||||||||||||||
Tropicana Laughlin | Laughlin, NV | — | 20,671 | 80,530 | — | 20,671 | 80,530 | 101,201 | 606 | 1988 | 10/1/2018 | 27 | ||||||||||||||||||||||||||||
Trop Casino Greenville | Greenville, MS | — | — | 21,680 | — | — | 21,680 | 21,680 | 146 | 2012 | 10/1/2018 | 31 | ||||||||||||||||||||||||||||
Belle of Baton Rouge | Baton Rouge, LA | — | 11,873 | 52,400 | — | 11,873 | 52,400 | 64,273 | 545 | 1994 | 10/1/2018 | 31 | ||||||||||||||||||||||||||||
$ | — | $ | 2,548,529 | $ | 5,573,416 | $ | 176,531 | $ | 2,544,928 | $ | 5,753,547 | $ | 8,298,475 | $ | 982,203 | |||||||||||||||||||||||||
Headquarters Property: | ||||||||||||||||||||||||||||||||||||||||
GLPI Corporate Office (3) | Wyomissing, PA | $ | — | $ | 750 | $ | 8,465 | $ | 58 | $ | 750 | $ | 8,523 | $ | 9,273 | $ | 883 | 2014/2015 | 9/19/2014 | 31 | ||||||||||||||||||||
Other Properties | ||||||||||||||||||||||||||||||||||||||||
Other owned land (4) | various | $ | — | $ | 6,798 | $ | — | $ | — | $ | 6,798 | $ | — | $ | 6,798 | $ | — | 10/1/18 | N/A | |||||||||||||||||||||
$ | — | $ | 2,556,077 | $ | 5,581,881 | $ | 176,589 | $ | 2,552,476 | $ | 5,762,070 | $ | 8,314,546 | $ | 983,086 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Real Estate: | (in thousands) | ||||||||||
Balance at the beginning of the period | $ | 4,519,501 | $ | 4,495,972 | $ | 2,750,867 | |||||
Acquisitions | 1,199,135 | 23,507 | 1,745,449 | ||||||||
Reclass of assets from investment in direct financing lease to real estate investments (1) | 2,599,180 | — | — | ||||||||
Capital expenditures and assets placed in service | — | 32 | 82 | ||||||||
Dispositions | (3,270 | ) | (10 | ) | (426 | ) | |||||
Balance at the end of the period | $ | 8,314,546 | $ | 4,519,501 | $ | 4,495,972 | |||||
Accumulated Depreciation: | |||||||||||
Balance at the beginning of the period | $ | (857,456 | ) | $ | (756,881 | ) | $ | (660,808 | ) | ||
Depreciation expense | (125,630 | ) | (100,576 | ) | (96,073 | ) | |||||
Dispositions | — | 1 | — | ||||||||
Balance at the end of the period | $ | (983,086 | ) | $ | (857,456 | ) | $ | (756,881 | ) |
Description | Interest Rate | Final Maturity Date | Periodic Payment Terms | Prior Liens | Face Amount of Mortgage | Carrying Amount of Mortgage (3) | Principal Amount of Loans Subject to Delinquent Principal or Interest | |||||||||||||
Lumière Place Loan | 9.09% | 10/1/2020 (1) | interest paid monthly | — | $ | 246,000 | $ | 246,000 | — | |||||||||||
Belterra Park Loan | 11.11% | 4/3/2051 (2) | interest paid monthly | — | 57,684 | 57,684 | — | |||||||||||||
$ | 303,684 | $ | 303,684 | — |
Year Ended December 31, 2018 | |||
(in thousands) | |||
Mortgage Loans: | |||
Balance at the beginning of the period | $ | — | |
Additions during the period: | |||
New mortgage loans | 303,684 | ||
Deductions during the period: | |||
Collections of principal | — | ||
Balance at the end of the period | $ | 303,684 |
Exhibit | Description of Exhibit | ||
2.1 | |||
2.2 | |||
2.3 | |||
2.4 | |||
2.5 | |||
2.6 | |||
2.7 | |||
3.1 | |||
3.2 | |||
4.1 | |||
4.2 | |||
4.3 | |||
4.4 | |||
4.5 | |||
Exhibit | Description of Exhibit | ||
4.6 | |||
4.7 | |||
4.8 | |||
4.9 | |||
4.10 | |||
4.11 | |||
4.12 | |||
4.13 | |||
4.14 | |||
4.15 | |||
10.1 | |||
10.2 | |||
10.3 | |||
10.4 | |||
10.5 | |||
Exhibit | Description of Exhibit | ||
10.6 | |||
10.7 | |||
10.8 | |||
10.9 | |||
10.10 | |||
10.11 | |||
10.12 | |||
10.13 | |||
10.14 | |||
10.15 | |||
10.16* | |||
10.17* | |||
10.18 | |||
10.19 | |||
10.20 | |||
10.21 |
Exhibit | Description of Exhibit | ||
10.22 | |||
10.23 | |||
10.24 | |||
10.25 | |||
10.26 | |||
10.27 | |||
10.28 | |||
10.29 | |||
10.30 # | |||
10.31# | |||
10.32 # | |||
10.33 # | |||
10.34 # | |||
10.35 # | |||
10.36 # * | |||
Exhibit | Description of Exhibit | ||
10.37 # | |||
10.38 | |||
21* | |||
23* | |||
31.1* | |||
31.2* | |||
32.1* | |||
32.2* | |||
101* | Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets at December 31, 2018 and 2017, (ii) the Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016, (iii) the Consolidated Statements of Changes in Shareholders' Equity (Deficit) for the years ended December 31, 2018, 2017 and 2016, (iv) the Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016, and (v) the notes to the Consolidated Financial Statements. |
GAMING AND LEISURE PROPERTIES, INC. | ||||
By: | /s/ PETER M. CARLINO | |||
Peter M. Carlino Chairman of the Board and Chief Executive Officer |
Signature | Title | Date | ||
/s/ PETER M. CARLINO | Chairman of the Board and Chief Executive Officer (Principal Executive Officer) | February 13, 2019 | ||
Peter M. Carlino | ||||
/s/ STEVEN T. SNYDER | Interim Chief Financial Officer (Principal Financial Officer and Duly Authorized Officer) | February 13, 2019 | ||
Steven T. Snyder | ||||
/s/ DESIREE A. BURKE | Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) | February 13, 2019 | ||
Desiree A. Burke | ||||
/s/ DAVID A. HANDLER | Director | February 13, 2019 | ||
David A. Handler | ||||
/s/ JOSEPH W. MARSHALL | Director | February 13, 2019 | ||
Joseph W. Marshall | ||||
/s/ JAMES B. PERRY | Director | February 13, 2019 | ||
James B. Perry | ||||
/s/ BARRY F. SCHWARTZ | Director | February 13, 2019 | ||
Barry F. Schwartz | ||||
/s/ EARL C. SHANKS | Director | February 13, 2019 | ||
Earl C. Shanks | ||||
/s/ E. SCOTT URDANG | Director | February 13, 2019 | ||
E. Scott Urdang | ||||
LANDLORD: | |
GLP CAPITAL, L.P. | |
By: /s/ Brandon J. Moore | |
Name: Brandon J. Moore | |
Title: Senior Vice President, General Counsel and Secretary | |
TENANT: | |
PENN TENANT, LLC | |
By: /s/ Carl Sottosanti | |
Name: Carl Sottosanti | |
Title: Executive Vice President, General Counsel and Secretary |
LANDLORD: | |
GLP CAPITAL, L.P. | |
By: /s/ Brandon J. Moore | |
Name: Brandon J. Moore | |
Title: Senior Vice President, General Counsel and Secretary | |
TENANT: | |
PENN TENANT, LLC | |
By: /s/ Carl Sottosanti | |
Name: Carl Sottosanti | |
Title: Executive Vice President, General Counsel and Secretary |
Subsidiaries of Gaming and Leisure Properties, Inc. (a Pennsylvania corporation) | ||
Name of Subsidiary | State or Other Jurisdiction of Incorporation | |
CCR PA Racing, LLC | Pennsylvania | |
GLP Capital Partners, LLC | Pennsylvania | |
GLP Capital, L.P. | Pennsylvania | |
GLP Holdings, Inc. | Pennsylvania | |
GLP Financing I, LLC | Delaware | |
GLP Financing II, Inc. | Delaware | |
GLP Midwest Properties I, LLC | Delaware | |
Gold Merger Sub, LLC | Delaware | |
Louisiana Casino Cruises, Inc. (d/b/a Hollywood Casino Baton Rouge) | Louisiana | |
PA Meadows, LLC | Delaware | |
Penn Cecil Maryland, Inc. (d/b/a Hollywood Casino Perryville) | Maryland | |
SE Inlet Properties, LLC | Delaware | |
WTA II, LLC | Delaware |
Date: | February 13, 2019 | /s/ Peter M. Carlino |
Name: Peter M. Carlino | ||
Chief Executive Officer |
Date: | February 13, 2019 | /s/ Steven T. Snyder |
Name: Steven T. Snyder | ||
Interim Chief Financial Officer |
/s/ Peter M. Carlino | |
Peter M. Carlino | |
Chief Executive Officer | |
Date: | February 13, 2019 |
/s/ Steven T. Snyder | |
Steven T. Snyder | |
Interim Chief Financial Officer | |
Date: | February 13, 2019 |
Document and Entity Information - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Feb. 08, 2019 |
Jun. 30, 2018 |
|
Document and Entity Information | |||
Entity Registrant Name | Gaming & Leisure Properties, Inc. | ||
Entity Central Index Key | 0001575965 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7.2 | ||
Entity Common Stock, Shares Outstanding | 214,638,534 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 214,211,932 | 212,717,549 |
Common stock, shares outstanding | 214,211,932 | 212,717,549 |
Consolidated Statements of Income - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Revenues | |||||||||||
Rental income | $ 747,654 | $ 671,190 | $ 567,444 | ||||||||
Income from direct financing lease | 81,119 | 74,333 | 48,917 | ||||||||
Interest income from mortgaged real estate | 6,943 | 0 | 0 | ||||||||
Real estate taxes paid by tenants | 87,466 | 83,698 | 67,843 | ||||||||
Total revenues | $ 303,317 | $ 254,139 | $ 254,221 | $ 244,050 | $ 240,697 | $ 244,506 | $ 243,391 | $ 242,713 | 1,055,727 | 971,307 | 828,255 |
Operating expenses | |||||||||||
Gaming, food, beverage and other | 77,127 | 80,487 | 82,463 | ||||||||
Real estate taxes | 88,757 | 84,666 | 69,448 | ||||||||
Land rights and ground lease expense | 28,358 | 24,005 | 14,799 | ||||||||
General and administrative | 71,128 | 63,151 | 71,368 | ||||||||
Depreciation | 137,093 | 113,480 | 109,554 | ||||||||
Goodwill impairment charges | 59,454 | 0 | 0 | ||||||||
Total operating expenses | 461,917 | 365,789 | 347,632 | ||||||||
Income from operations | 123,884 | 164,834 | 153,241 | 151,851 | 150,117 | 152,699 | 152,696 | 150,006 | 593,810 | 605,518 | 480,623 |
Other income (expenses) | |||||||||||
Interest expense | (247,684) | (217,068) | (185,896) | ||||||||
Interest income | 1,827 | 1,935 | 2,123 | ||||||||
Losses on debt extinguishment | (3,473) | 0 | 0 | ||||||||
Total other expenses | (249,330) | (215,133) | (183,773) | ||||||||
Income before income taxes | 344,480 | 390,385 | 296,850 | ||||||||
Income tax expense | 4,964 | 9,787 | 7,545 | ||||||||
Net income | $ 45,931 | $ 104,815 | $ 91,998 | $ 96,772 | $ 93,259 | $ 97,014 | $ 96,334 | $ 93,991 | $ 339,516 | $ 380,598 | $ 289,305 |
Earnings per common share: | |||||||||||
Basic earnings per common share (in dollars per share) | $ 0.21 | $ 0.49 | $ 0.43 | $ 0.45 | $ 0.44 | $ 0.46 | $ 0.46 | $ 0.45 | $ 1.59 | $ 1.80 | $ 1.62 |
Diluted earnings per common share (in dollars per share) | $ 0.21 | $ 0.49 | $ 0.43 | $ 0.45 | $ 0.43 | $ 0.45 | $ 0.45 | $ 0.45 | $ 1.58 | $ 1.79 | $ 1.60 |
Real estate | |||||||||||
Revenues | |||||||||||
Total revenues | $ 923,182 | $ 829,221 | $ 684,204 | ||||||||
Gaming, food, beverage and other | |||||||||||
Revenues | |||||||||||
Total revenues | $ 132,545 | $ 142,086 | $ 144,051 |
Consolidated Statements of Changes in Shareholders' Equity (Deficit) (Parenthetical) - $ / shares |
12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 28, 2018 |
Sep. 21, 2018 |
Jun. 29, 2018 |
Mar. 23, 2018 |
Dec. 15, 2017 |
Sep. 22, 2017 |
Jun. 30, 2017 |
Mar. 24, 2017 |
Dec. 16, 2016 |
Sep. 23, 2016 |
Jun. 17, 2016 |
Mar. 25, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Common stock, dividends per share, cash paid | $ 0.68 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.62 | $ 0.62 | $ 0.60 | $ 0.60 | $ 0.56 | $ 0.56 | $ 2.57 | $ 2.50 | $ 2.32 |
Business and Basis of Presentation |
12 Months Ended |
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Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Gaming and Leisure Properties, Inc. ("GLPI") is a self-administered and self-managed Pennsylvania real estate investment trust ("REIT"). GLPI (together with its subsidiaries, the "Company") was incorporated on February 13, 2013, as a wholly-owned subsidiary of Penn National Gaming, Inc. ("Penn"). On November 1, 2013, Penn contributed to GLPI, through a series of internal corporate restructurings, substantially all of the assets and liabilities associated with Penn’s real property interests and real estate development business, as well as the assets and liabilities of Hollywood Casino Baton Rouge and Hollywood Casino Perryville, which are referred to as the "TRS Properties," and then spun-off GLPI to holders of Penn's common and preferred stock in a tax-free distribution (the "Spin-Off"). The assets and liabilities of GLPI were recorded at their respective historical carrying values at the time of the Spin-Off in accordance with the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 505-60 - Spinoffs and Reverse Spinoffs ("ASC 505"). The Company elected on its United States ("U.S.") federal income tax return for its taxable year that began on January 1, 2014 to be treated as a REIT and GLPI, together with an indirect wholly-owned subsidiary, GLP Holdings, Inc., jointly elected to treat each of GLP Holdings, Inc., Louisiana Casino Cruises, Inc. (d/b/a Hollywood Casino Baton Rouge) and Penn Cecil Maryland, Inc. (d/b/a Hollywood Casino Perryville) as a "taxable REIT subsidiary" ("TRS") effective on the first day of the first taxable year of GLPI as a REIT. In connection with the Spin-Off, Penn allocated its accumulated earnings and profits (as determined for U.S. federal income tax purposes) for periods prior to the consummation of the Spin-Off between Penn and GLPI. In connection with its election to be taxed as a REIT for U.S. federal income tax purposes, GLPI declared a special dividend to its shareholders to distribute any accumulated earnings and profits relating to the real property assets and attributable to any pre-REIT years, including any earnings and profits allocated to GLPI in connection with the Spin-Off, to comply with certain REIT qualification requirements. As a result of the Spin-Off, GLPI owns substantially all of Penn’s former real property assets and leases back most of those assets to Penn for use by its subsidiaries, under a unitary master lease, a triple-net operating lease with an initial term of 15 years (expiring October 31, 2028) with no purchase option, followed by four 5-year renewal options (exercisable by Penn) on the same terms and conditions (the "Penn Master Lease"), and GLPI also owns and operates the TRS Properties through an indirect wholly-owned subsidiary, GLP Holdings, Inc. In April 2016, the Company acquired substantially all of the real estate assets of Pinnacle Entertainment, Inc. ("Pinnacle") for approximately $4.8 billion. GLPI originally leased these assets back to Pinnacle, under a unitary triple-net lease with an initial term of 10 years (expiring April 30, 2026) with no purchase option, followed by five 5-year renewal options (exercisable by Pinnacle) on the same terms and conditions (the "Pinnacle Master Lease"). On October 15, 2018, the Company completed its previously announced transactions with Penn, Pinnacle and Boyd Gaming Corporation ("Boyd") to accommodate Penn's acquisition of the majority of Pinnacle's operations, pursuant to a definitive agreement and plan of merger between Penn and Pinnacle, dated December 17, 2017 (the "Penn-Pinnacle Merger"). Concurrent with the Penn-Pinnacle Merger, the Company amended the Pinnacle Master Lease to allow for the sale of the operating assets of Ameristar Casino Hotel Kansas City, Ameristar Casino Resort Spa St. Charles and Belterra Casino Resort from Pinnacle to Boyd (the "Amended Pinnacle Master Lease") and entered into a new unitary triple-net master lease agreement with Boyd for these properties on terms similar to the Company’s existing master leases. The Company also purchased the real estate assets of Plainridge Park Casino ("Plainridge Park") from Penn for $250.0 million, exclusive of transaction fees and taxes and added this property to the Amended Pinnacle Master Lease. The Amended Pinnacle Master Lease was assumed by Penn at the consummation of the Penn-Pinnacle Merger. The Company also entered into a mortgage loan agreement with Boyd in connection with Boyd's acquisition of Belterra Park Gaming & Entertainment Center ("Belterra Park"), whereby the Company loaned Boyd $57.7 million. See Note 4 for further details surrounding the original Pinnacle acquisition and the subsequent acquisition of Pinnacle by Penn. GLPI’s primary business consists of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements. As of December 31, 2018, GLPI’s portfolio consisted of interests in 46 gaming and related facilities, including the TRS Properties, the real property associated with 33 gaming and related facilities operated by Penn, the real property associated with 6 gaming and related facilities operated by Eldorado (including one mortgaged facility), the real property associated with 4 gaming and related facilities operated by Boyd (including one mortgaged facility) and the real property associated with the Casino Queen in East St. Louis, Illinois. These facilities are geographically diversified across 16 states and contain approximately 23.5 million square feet. As of December 31, 2018, the Company's properties were 100% occupied. GLPI expects to grow its portfolio by pursuing opportunities to acquire additional gaming facilities to lease to gaming operators under prudent terms. In addition to the acquisition of Plainridge Park described above, on October 1, 2018, the Company closed its previously announced transaction to acquire certain real property assets from Tropicana Entertainment Inc. (“Tropicana”) and certain of its affiliates pursuant to a Purchase and Sale Agreement (the “Real Estate Purchase Agreement”) dated April 15, 2018 between Tropicana and GLP Capital L.P., the operating partnership of GLPI (“GLP Capital”), which was subsequently amended on October 1, 2018 (as amended, the “Amended Real Estate Purchase Agreement”). Pursuant to the terms of the Amended Real Estate Purchase Agreement, the Company acquired the real estate assets of Tropicana Atlantic City, Tropicana Evansville, Tropicana Laughlin, Trop Casino Greenville and the Belle of Baton Rouge (the “GLP Assets”) from Tropicana for an aggregate cash purchase price of $964.0 million, exclusive of transaction fees and taxes (the "Tropicana Acquisition"). Concurrent with the Tropicana Acquisition, Eldorado Resorts, Inc. ("Eldorado") acquired the operating assets of these properties from Tropicana pursuant to an Agreement and Plan of Merger dated April 15, 2018 by and among Tropicana, GLP Capital, Eldorado and a wholly-owned subsidiary of Eldorado (the "Tropicana Merger Agreement") and leased the GLP Assets from the Company pursuant to the terms of a new unitary triple-net master lease with a 15-year initial term, with no purchase option followed by four successive 5 -year renewal periods (exercisable by Eldorado) on the same terms and conditions (the “Eldorado Master Lease”). Additionally, on October 1, 2018 the Company made a mortgage loan to Eldorado in the amount of $246.0 million in connection with Eldorado’s acquisition of Lumière Place (together with the Tropicana Acquisition the "Tropicana Transactions"). The consolidated financial statements include the accounts of GLPI and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses for the reporting periods. Actual results may differ from those estimates. |
New Accounting Pronouncements |
12 Months Ended |
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Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2017, the Financial Accounting Standards Board ("FASB") issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting ("ASU 2017-09"). This ASU provides clarity about which changes to the terms or conditions of a share-based payment award require the application of modification accounting. Specifically, ASU 2017-09 clarifies that changes to the terms or conditions of an award should be accounted for as a modification unless all of the following are met: 1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified, 2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified and 3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. ASU 2017-09 is effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2017-09 on January 1, 2018 and does not expect ASU 2017-09 to significantly impact its accounting for share-based payment awards, as changes to awards' terms and conditions subsequent to the grant date are unusual and infrequent in nature. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business ("ASU 2017-01"). This ASU provides clarifying guidance on what constitutes a business acquisition versus an asset acquisition. Specifically, the new guidance lays out a screen to more easily determine if a set of integrated assets and activities does in fact represent a business. Under the ASU 2017-01, when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the assets do not represent a business. ASU 2017-01 is effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2017-01 on January 1, 2018 with no impact to the Company's accounting treatment of its acquisitions. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, a Consensus of the FASB Emerging Issues Task Force ("ASU 2016-15"). This ASU provides clarifying guidance on the presentation of certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 is effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2016-15 on January 1, 2018, with no impact to its presentation of cash receipts and payments on its consolidated statements of cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). This new standard replaces all preceding U.S. GAAP guidance on this topic and eliminates all industry-specific guidance. ASU 2014-09 provides a unified five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 on January 1, 2018 using the modified retrospective approach and recorded a cumulative adjustment to retained earnings of approximately $410,000 at the adoption date. The majority of the Company's revenue recognition policies were not impacted by the new revenue standard, as leases (the source of the Company's majority of revenues) are excluded from ASU 2014-09. Only the accounting treatment for the customer loyalty programs at the TRS properties was impacted by the adoption of ASU 2014-09. See Note 12 for further details on the adoption impact of ASU 2014-09 at the TRS Properties. Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (a consensus of the FASB Emerging Issues Task Force) ("ASU 2018-15"). This ASU clarifies that entities should follow the guidance for capitalizing implementation costs incurred to develop or obtain internal-use software to account for implementation costs of cloud computing arrangements that are service contracts. ASU 2018-15 does not change the accounting for the service component of a cloud computing arrangement. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of ASU 2018-15 to have a significant impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). This ASU simplifies an entity's goodwill impairment test by eliminating Step 2 from the test. The new guidance also amends the definition of impairment to a condition that exists when the carrying amount of goodwill exceeds its fair value. By eliminating Step 2 from the test, entities are no longer required to determine the implied fair value of goodwill by computing the fair value (at impairment testing date) of all assets and liabilities in a manner similar to that required in conjunction with business combinations. Upon the adoption of ASU 2017-04, an impairment charge is simply recorded as the difference between carrying value and fair value, when carrying value exceeds fair value. ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company expects the adoption of ASU 2017-04 to simplify the analysis required under the goodwill impairment test. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrument ("ASU 2016-13"). This ASU introduces a new model for estimating credit losses for certain types of financial instruments, including mortgage and other loans receivable, amongst other financial instruments. ASU 2016-13 sets forth an "expected credit loss" impairment model to replace the current "incurred loss" method of recognizing credit losses, which is intended to improve financial reporting by requiring timely recording of credit losses on loans and other financial instruments. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company does not expect the adoption of ASU 2016-13 to have a significant impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). This ASU primarily provides new guidance for lessees on the accounting treatment of operating leases. Under the new guidance, lessees are required to recognize assets and liabilities arising from operating leases on the balance sheet. ASU 2016-02 also aligns lessor accounting with the revenue recognition guidance in Topic 606 of the Accounting Standards Codification. Generally speaking, ASU 2016-02 will more significantly impact the accounting for leases in which GLPI is the lessee by requiring the Company to record a right of use asset and lease liability on its consolidated balance sheets for these leases. The Company's accounting treatment of its triple-net tenant leases, which are the primary source of revenues to the Company is not significantly impacted by the adoption of ASU 2016-02, other than to eliminate the real estate tax gross-up discussed below. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018 and was originally required to be adopted on a modified retrospective basis, meaning the new leasing model would need to be applied to the earliest year presented in the financial statements and thereafter. However, in July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements ("ASU 2018-11") which permits companies to apply the transition provisions of the lease accounting standard at its effective date (i.e. comparative financial statements are not required). Furthermore, in December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow Scope Improvements for Lessors ("ASU 2018-20"). ASU 2018-20 clarifies that lessor costs paid directly to a third-party by a lessee on behalf of the lessor, are no longer required to be recognized in the lessor's financial statements. Therefore, upon the adoption of ASU 2016-02, the Company will no longer gross-up its financial statements for real estate taxes paid directly to third-parties by its tenants. The Company notes, however, that ground leases for which the tenant pays the landlord directly on the Company's behalf are still required to be grossed-up within its consolidated financial statements upon the adoption of ASU 2016-02 as these are not considered lessor costs. On January 1, 2019, the Company prospectively adopted ASU 2016-02 using the new transition option available under ASU 2018-11 and recorded a right-of-use asset and related lease liability of approximately $180 million on its consolidated balance sheet to represent its future lease obligations. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash and Cash Equivalents The Company considers all cash balances and highly-liquid investments with original maturities of three months or less to be cash and cash equivalents. Concentration of Credit Risk Concentrations of credit risk arise when a number of operators, tenants, or obligors related to the Company's investments are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to the Company, to be similarly affected by changes in economic conditions. Additionally, concentrations of credit risk may arise when revenues of the Company are derived from a small number of tenants. As of December 31, 2018, substantially all of the Company's real estate properties were leased to Penn, Eldorado and Boyd. During the year ended December 31, 2018, approximately 93% of the Company's collective income from real estate (excluding real estate taxes and ground leases paid by tenants) was derived from tenant leases with Penn and its acquiree Pinnacle, whereas approximately 3% and 2% of the Company's collective income from real estate (excluding real estate taxes and ground leases paid by tenants) was derived from tenant leases and mortgage loans with Eldorado and Boyd, respectively. Figures for Eldorado and Boyd represent partial years of revenue as both leases commenced in the fourth quarter of 2018. Revenues from our tenants are reported in the Company's GLP Capital, L.P. reportable segment. Penn, Eldorado and Boyd are publicly traded companies that are subject to the informational filing requirements of the Securities Exchange Act of 1934, as amended, and are required to file periodic reports on Form 10-K and Form 10-Q and current reports on Form 8-K with the Securities and Exchange Commission ("SEC"). Readers are directed to Penn, Eldorado and Boyd's respective websites for further financial information on these companies. Other than the Company's tenant concentration, management believes the Company's portfolio was reasonably diversified by geographical location and did not contain any other significant concentrations of credit risk. As of December 31, 2018, the Company's portfolio of 46 properties is diversified by location across 16 states. Financial instruments that subject the Company to credit risk consist of cash and cash equivalents, accounts receivable, mortgage loans receivable and loans receivable. The Company's policy is to limit the amount of credit exposure to any one financial institution and place investments with financial institutions evaluated as being creditworthy, or in short-term money market and tax-free bond funds which are exposed to minimal interest rate and credit risk. At times, the Company has bank deposits and overnight repurchase agreements that exceed federally-insured limits. Prepaid Expenses and Other Assets Prepaid expenses consist of expenditures for goods (other than inventories) or services before the goods are used or the services are received. These amounts are deferred and charged to operations as the benefits are realized and primarily consist of prepayments for insurance and other contracts that will be expensed during the subsequent year. It also includes property taxes that were paid in advance, as well as transaction costs that will be allocated to purchase price upon the closing of an asset acquisition. Other assets consists primarily of accounts receivable, deposits, food and beverage inventory and deferred compensation plan assets (See Note 11 for further details on the deferred compensation plan). Fair Value of Financial Assets and Liabilities Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are classified based upon the level of judgment associated with the inputs used to measure their fair value. ASC 820 - Fair Value Measurements and Disclosures ("ASC 820") establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). The levels of the hierarchy related to the subjectivity of the valuation inputs are described below:
The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate: Cash and Cash Equivalents The fair value of the Company’s cash and cash equivalents approximates the carrying value of the Company’s cash and cash equivalents, due to the short maturity of the cash equivalents. Deferred Compensation Plan Assets The Company's deferred compensation plan assets consist of open-ended mutual funds and as such the fair value measurement of the assets is considered a Level 1 measurement as defined under ASC 820. Deferred compensation plan assets are included within other assets on the consolidated balance sheets. Mortgage Loans Receivable The fair value of the mortgage loans receivable approximates the carrying value of the Company's mortgage loans receivable, as collection on the outstanding loan balances is reasonably assured. The fair value measurement of the loan receivable is considered a Level 3 measurement as defined under ASC 820. Long-term Debt The fair value of the senior unsecured notes and senior unsecured credit facility is estimated based on quoted prices in active markets and as such is a Level 1 measurement as defined under ASC 820. The estimated fair values of the Company’s financial instruments are as follows (in thousands):
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis in periods subsequent to initial recognition. Assets measured at fair value on a nonrecurring basis during the year ended December 31, 2018 are categorized in the table below based upon the lowest level of significant input to the valuation. There were no assets measured at fair value on a nonrecurring basis during the year ended December 31, 2017 or liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2018 and 2017.
Goodwill During the year ended December 31, 2018, the Company recorded goodwill impairment charges of $59.5 million on its Baton Rouge reporting unit, resulting from a significant reduction in the long-term earnings forecast of this property. The Company utilized the income approach to measure the fair value of goodwill, which involves a number of key assumptions, such as cash flow forecasts and discount rates. See Note 9 for additional information regarding the calculation of the impairment charge. Loan Receivable During the fourth quarter of 2018, the Company recorded an impairment charge of $1.5 million related to the paid-in-kind interest income on its loan receivable with Casino Queen. The Company determined, based upon facts and circumstances existing at December 31, 2018, that the paid-in-kind interest due to the Company at December 31, 2018 is not expected to be collected. Therefore, the Company did not recognize the paid-in-kind interest income due to the Company for the quarter ended December 31, 2018 and took a charge for the previously recognized paid-in-kind interest income through the Company’s consolidated statement of earnings as a reversal of the paid-in-kind interest income recognized earlier in the year. See Note 8 for further details surrounding the Casino Queen loan. Real Estate Investments Real estate investments primarily represent land and buildings leased to the Company's tenants. The Company records the acquisition of real estate assets at fair value, including acquisition and closing costs. The cost of properties developed by the Company include costs of construction, property taxes, interest and other miscellaneous costs incurred during the development period until the project is substantially complete and available for occupancy. The Company considers the period of future benefit of the asset to determine the appropriate useful lives. Depreciation is computed using a straight-line method over the estimated useful lives of the buildings and building improvements which are generally between 10 to 31 years. The Company continually monitors events and circumstances that could indicate that the carrying amount of its real estate investments may not be recoverable or realized. When indicators of potential impairment suggest that the carrying value of a real estate investment may not be recoverable, the Company estimates the fair value of the investment by calculating the undiscounted future cash flows from the use and eventual disposition of the investment. This amount is compared to the asset's carrying value. If the Company determines the carrying amount is not recoverable, it would recognize an impairment charge equivalent to the amount required to reduce the carrying value of the asset to its estimated fair value, calculated in accordance with GAAP. The Company groups its real estate investments together by lease, the lowest level for which identifiable cash flows are available, in evaluating impairment. In assessing the recoverability of the carrying value, the Company must make assumptions regarding future cash flows and other factors. The factors considered by the Company in performing this assessment include current operating results, market and other applicable trends and residual values, as well as the effect of obsolescence, demand, competition and other factors. If these estimates or the related assumptions change in the future, the Company may be required to record an impairment loss. Land Rights Land rights represent the Company's rights to land subject to long-term ground leases. The Company records land rights at the acquisition date fair value of the long-term rights purchased from sellers. Essentially, land rights represent the below market value of the related ground leases. Land rights are amortized over the individual lease term of each ground lease, including all renewal options. Amortization expense related to the land rights is recorded within land rights and ground lease expense in the Company's consolidated statements of income. Land rights are monitored for potential impairment in much the same way as the Company's real estate assets. If the Company determines the carrying amount of a land right is not recoverable, it would recognize an impairment charge equivalent to the amount required to reduce the carrying value of the asset to its estimated fair value, calculated in accordance with GAAP. Property and Equipment Used in Operations Property and equipment are stated at cost, less accumulated depreciation and represent assets used by the Company's TRS operations and certain corporate assets. Maintenance and repairs that neither add materially to the value of the asset nor appreciably prolong its useful life are charged to expense as incurred. Gains or losses on the disposal of property and equipment are included in the determination of income. Depreciation of property and equipment is recorded using the straight-line method over the following estimated useful lives:
Leasehold improvements are depreciated over the shorter of the estimated useful life of the improvement or the related lease term. The estimated useful lives are determined based on the nature of the assets as well as the Company's current operating strategy. The Company reviews the carrying value of its property and equipment for possible impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable based upon the estimated undiscounted future cash flows expected to result from its use and eventual disposition. If the Company determines the carrying amount is not recoverable, it would recognize an impairment charge equivalent to the amount required to reduce the carrying value of the asset to its estimated fair value, calculated in accordance with GAAP. In estimating expected future cash flows for determining whether an asset is impaired, assets are grouped at the individual property level. In assessing the recoverability of the carrying value of property and equipment, the Company must make assumptions regarding future cash flows and other factors. The factors considered by the Company in performing this assessment include current operating results, market and other applicable trends and residual values, as well as the effect of obsolescence, demand, competition and other factors. If these estimates or the related assumptions change in the future, the Company may be required to record an impairment loss for these assets. Mortgage Loans Receivable The Company may periodically loan funds to casino owner-operators via secured mortgage loans for the purchase of gaming related properties. Mortgage loans are recorded on the Company's consolidated balance sheets at carrying value which approximates fair value. If the collectability of an outstanding mortgage balance is not reasonably assured, the Company will assess the loan's carrying value for potential impairment. If it is determined the loan is in fact impaired it will be written down or off completely. At December 31, 2018, the Company does not have any allowances recorded against its mortgage loans receivable as the collection of the remaining principal and interest payments is reasonable assured. Interest income related to mortgage loans receivable is recorded as revenue from mortgaged real estate within the Company's consolidated statements of income in the period earned. Investments in Direct Financing Leases As discussed in Note 8, prior to the Penn-Pinnacle Merger, the Pinnacle Master Lease was bifurcated between an operating lease and a direct financing lease, with the land assets qualifying for operating lease treatment and the building assets triggering direct financing lease treatment. This net investment in direct financing lease was unwound in conjunction with the Penn-Pinnacle Merger, via the fourth amendment to the Pinnacle Master. As a result of this amendment, the Company reassessed the lease's classification and determined the new lease agreement qualified for operating lease treatment under ASC 840 - Leases ("ASC 840"). Therefore, subsequent to the Penn-Pinnacle Merger, the Pinnacle Master Lease is treated as an operating lease in its entirety and the building assets previously recorded as an investment in direct financing lease on the Company's consolidated balance sheet were recorded as real estate assets on the Company's consolidated balance sheet. At December 31, 2017, the Company's investment in direct financing lease represented the building portion of the real estate assets acquired in the original Pinnacle transaction. Goodwill and Other Intangible Assets The Company's goodwill and intangible assets are the result of the contribution of Hollywood Casino Baton Rouge and Hollywood Casino Perryville in connection with the Spin-Off. The Company's goodwill resides on the books of its Hollywood Casino Baton Rouge subsidiary, while the other intangible asset represents a gaming license on the books of its Hollywood Casino Perryville subsidiary. Both subsidiaries are members of the TRS Properties segment and are considered separate reporting units under ASC 350 - Intangibles - Goodwill and Other ("ASC 350"). Goodwill is tested at the reporting unit level, which is an operating segment or one level below an operating segment for which discrete financial information is available Under ASC 350, the Company is required to test goodwill for impairment at least annually and whenever events or circumstances indicate that it is more likely than not that goodwill may be impaired. The Company has elected to perform its annual goodwill impairment test as of October 1 of each year. In accordance with ASC 350, the Company tests goodwill for impairment subsequent to testing its other long-lived assets for impairment. ASC 350 prescribes a two-step goodwill impairment test, the first step which involves the determination of the fair value of each reporting unit and its comparison to the carrying amount. In order to determine the fair value of the Baton Rouge reporting unit, the Company utilizes a discounted cash flow model, which relies on projected EBITDA to determine the reporting unit's future cash flows. If the carrying amount exceeds the fair value in step 1, then step 2 of the impairment test is performed to determine the implied fair value of goodwill. If the implied fair value of goodwill is less than the goodwill allocated to the reporting unit, an impairment loss is recognized. In accordance with ASC 350, the Company considers its Hollywood Casino Perryville gaming license an indefinite-lived intangible asset that does not require amortization based on the Company's future expectations to operate this casino indefinitely, as well as the gaming industry's historical experience in renewing these intangible assets at minimal cost with various state gaming commissions. Rather, the Company's gaming license is tested annually, or more frequently if indicators of impairment exist, for impairment by comparing the fair value of the recorded asset to its carrying amount. If the carrying amount of the indefinite-life intangible asset exceeds its fair value, an impairment loss is recognized. Hollywood Casino Perryville's gaming license will expire in September 2025, fifteen years from the casino's opening date. The Company expects to expense any costs related to the gaming license renewal as incurred. The Company calculates the fair value of its gaming license using the Greenfield Method under the income approach. The Greenfield Method estimates the fair value of the gaming license assuming the Company built a casino with similar utility to that of the existing facility. The method assumes a theoretical start-up company going into business without any assets other than the intangible asset being valued. As such the value of the license is a function of the following items:
The evaluation of goodwill and indefinite-lived intangible assets requires the use of estimates about future operating results to determine the estimated fair value of the reporting unit and the indefinite-lived intangible assets. The Company must make various assumptions and estimates in performing its impairment testing. The implied fair value includes estimates of future cash flows that are based on reasonable and supportable assumptions, which represent the Company's best estimates of the cash flows expected to result from the use of the assets. Changes in estimates, increases in the Company's cost of capital, reductions in transaction multiples, changes in operating and capital expenditure assumptions or application of alternative assumptions and definitions could produce significantly different results. Future cash flow estimates are, by their nature, subjective and actual results may differ materially from the Company's estimates. If the Company's ongoing estimates of future cash flows are not met, the Company may have to record additional impairment charges in future accounting periods. The Company's estimates of cash flows are based on the current regulatory and economic climates, as well as recent operating information and budgets. These estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, or other events. Forecasted cash flows can be significantly impacted by the local economy in which the Company's subsidiaries operate. For example, increases in unemployment rates can result in decreased customer visitations and/or lower customer spend per visit. In addition, new legislation which approves gaming in nearby jurisdictions or further expands gaming in jurisdictions in which the Company operates can result in increased competition for the property. This generally has a negative effect on profitability once competitors become established, as a certain level of cannibalization occurs absent an overall increase in customer visitations. Lastly, increases in gaming taxes approved by state regulatory bodies can negatively impact forecasted cash flows. Assumptions and estimates about future cash flow levels are complex and subjective. They are sensitive to changes in underlying assumptions and can be affected by a variety of factors, including external factors, such as industry, geopolitical and economic trends, and internal factors, such as changes in the Company's business strategy, which may reallocate capital and resources to different or new opportunities which management believes will enhance the Company's overall value but may be to the detriment of its existing operations. For further information on the Company's evaluation of its goodwill and gaming license for impairment during the year ended December 31, 2018, see Note 9. Debt Issuance Costs Debt issuance costs that are incurred by the Company in connection with the issuance of debt are deferred and amortized to interest expense over the contractual term of the underlying indebtedness. In accordance with ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, the Company records long-term debt net of unamortized debt issuance costs on its consolidated balance sheets. Similarly, the Company records long-term debt net of any unamortized bond premiums and original issuance discounts on its consolidated balance sheets. Loans Receivable The Company may periodically loan funds to tenants. Loans are made at prevailing market interest rates and recorded on the Company's consolidated balance sheets at carrying value which approximates fair value. If the collectability of an outstanding loan balance is not reasonably assured, the Company will assess the loan's carrying value for potential impairment. If it is determined the loan is in fact impaired it will be written down or off completely. Income Taxes The TRS Properties are able to engage in activities resulting in income that would not be qualifying income for a REIT. As a result, certain activities of the Company which occur within its TRS Properties are subject to federal and state income taxes. The Company accounts for income taxes in accordance with ASC 740 - Income Taxes ("ASC 740"). Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and are measured at the prevailing enacted tax rates that will be in effect when these differences are settled or realized. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realizability of the deferred tax assets is evaluated by assessing the valuation allowance and by adjusting the amount of the allowance, if any, as necessary. The factors used to assess the likelihood of realization are the forecast of future taxable income. ASC 740 also creates a single model to address uncertainty in tax positions, and clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in an enterprise's financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company did not have any uncertain tax positions for the three years ended December 31, 2018. The Company is required under ASC 740 to disclose its accounting policy for classifying interest and penalties, the amount of interest and penalties charged to expense each period, as well as the cumulative amounts recorded in the consolidated balance sheets. If and when they occur, the Company will classify any income tax-related penalties and interest accrued related to unrecognized tax benefits in taxes on income within the consolidated statements of income. During the years ended December 31, 2018 and 2017, the Company recognized no penalties and interest, net of deferred income taxes and during the year ended December 31, 2016, the Company recognized $1 thousand of penalties and interest, net of deferred income taxes. The Company elected on its U.S. federal income tax return for its taxable year that began on January 1, 2014 to be treated as a REIT and the Company, together with an indirect wholly-owned subsidiary of the Company, GLP Holdings, Inc., jointly elected to treat each of GLP Holdings, Inc., Louisiana Casino Cruises, Inc. and Penn Cecil Maryland, Inc. as a "taxable REIT subsidiary" effective on the first day of the first taxable year of GLPI as a REIT. The Company continues to be organized and to operate in a manner that will permit the Company to qualify as a REIT. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to shareholders. As a REIT, the Company generally will not be subject to federal, state or local income tax on income that it distributes as dividends to its shareholders, except in those jurisdictions that do not allow a deduction for such distributions. If the Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal, state and local income tax, including any applicable alternative minimum tax, on its taxable income at regular corporate income tax rates, and dividends paid to its shareholders would not be deductible by the Company in computing taxable income. Any resulting corporate liability could be substantial and could materially and adversely affect the Company's net income and net cash available for distribution to shareholders. Unless the Company was entitled to relief under certain Internal Revenue Code provisions, the Company also would be disqualified from re-electing to be taxed as a REIT for the 4 taxable years following the year in which it failed to qualify to be taxed as a REIT. Revenue Recognition The Company recognizes rental revenue from tenants, including rental abatements, lease incentives and contractually fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectability is reasonably assured. Additionally, percentage rent that is fixed and determinable at the lease inception date is recorded on a straight-line basis over the lease term, resulting in the recognition of deferred rental revenue on the Company’s consolidated balance sheets. Deferred rental revenue is amortized to rental revenue on a straight-line basis over the remainder of the lease term. The lease term includes the initial non-cancelable lease term and any reasonably assured renewable periods. Contingent rental income that is not fixed and determinable at lease inception is recognized only when the lessee achieves the specified target. Recognition of rental income commences when control of the facility has been transferred to the tenant. The Company recognizes income from tenants subject to direct financing leases ratably over the lease term using the effective interest rate method which produces a constant periodic rate of return on the net investment in the leased property. At lease inception, the Company records an asset which represents the Company's net investment in the direct financing lease. This initial net investment is determined by aggregating the total future minimum lease payments attributable to the direct financing lease and the estimated residual value of the property, less unearned income. Over the lease term, the investment in the direct financing lease is reduced and income is recognized for the building portion of rent. Furthermore, as the net investment in direct financing lease includes only future minimum lease payments, percentage rent that is not fixed and determinable at the lease inception is excluded from the determination of the rent attributable to the leased assets and will therefore be recorded as income from the direct financing lease in the period earned. In conjunction with the Penn-Pinnacle Merger on October 15, 2108, the Company's only direct financing lease was unwound and the master lease it was associated with qualified for operating lease treatment in its entirety. For further details refer to Note 8. Additionally, in accordance with ASC 606 - Revenue from Contracts with Customers ("ASC 606"), the Company records revenue for the real estate taxes paid by its tenants on the leased properties with an offsetting expense in real estate taxes within the consolidated statement of income as the Company has concluded it is the primary obligor. Similarly, the Company records revenue for the ground lease rent paid by its tenants with an offsetting expense in land rights and ground lease expense within the consolidated statements of income as the Company has concluded that as the lessee it is the primary obligor under the ground leases. The Company subleases these ground leases back to its tenants, who are responsible for payment directly to the landlord. The Company may periodically loan funds to casino owner-operators via secured mortgage loans for the purchase of gaming related properties. Interest income related to mortgage loans receivable is recorded as revenue from mortgaged real estate within the Company's consolidated statements of income in the period earned. Gaming revenue generated by the TRS Properties mainly consists of revenue from slot machines and to a lesser extent, table game and poker revenue. Gaming revenue from slot machines is the aggregate net difference between gaming wins and losses with liabilities recognized for funds deposited by customers before gaming play occurs, for "ticket-in, ticket-out" coupons in the customers’ possession, and for accruals related to the anticipated payout of progressive jackpots. Progressive slot machines, which contain base jackpots that increase at a progressive rate based on the number of coins played, are charged to revenue as the amount of the jackpots increase. Table game gaming revenue is the aggregate of table drop adjusted for the change in aggregate table chip inventory. Table drop is the total dollar amount of the currency, coins, chips, tokens, outstanding counter checks (markers), and front money that are removed from the live gaming tables. Additionally, food and beverage revenue is recognized as services are performed. Gaming revenue is recognized net of certain sales incentives, including promotional allowances in accordance with ASC 606. The Company also defers a portion of the revenue received from customers (who participate in the points based loyalty programs) at the time of play and attributed to the awarded points until a later period when the points are redeemed or forfeited. See Note 12 for a summary of the changes to the recognition of revenue at the TRS Properties related to the adoption of ASU 2014-09 on January 1, 2018. Gaming Taxes For the TRS Properties, the Company is subject to gaming taxes based on gross gaming revenues in the jurisdictions in which it operates. The Company recognizes gaming tax expense based on the statutorily required percentage of revenue that is required to be paid to state and local jurisdictions in the states where wagering occurs. The Company records gaming taxes at the Company’s estimated effective gaming tax rate for the year, considering estimated taxable gaming revenue and the applicable rates. Such estimates are adjusted each interim period. If gaming tax rates change during the year, such changes are applied prospectively in the determination of gaming tax expense in future interim periods. For the three years ended December 31, 2018, these expenses, which are recorded within gaming, food, beverage and other expense in the consolidated statements of income, totaled $56.0 million, $57.4 million and $57.7 million, respectively. Earnings Per Share The Company calculates earnings per share ("EPS") in accordance with ASC 260 - Earnings Per Share. Basic EPS is computed by dividing net income applicable to common stock by the weighted-average number of common shares outstanding during the period, excluding net income attributable to participating securities (unvested restricted stock awards). Diluted EPS reflects the additional dilution for all potentially-dilutive securities such as stock options, unvested restricted shares and unvested performance-based restricted shares. The following table reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS for the years ended December 31, 2018, 2017 and 2016:
The following table presents the calculation of basic and diluted EPS for the Company’s common stock for the years ended December 31, 2018, 2017 and 2016:
There were 13,335 outstanding equity based awards during the year ended December 31, 2018 and 3,483 and 23,954 outstanding equity based awards during the years ended December 31, 2017 and 2016, respectively, that were not included in the computation of diluted EPS because they were antidilutive. Stock-Based Compensation The Company's Amended and Restated 2013 Long Term Incentive Compensation Plan (the "2013 Plan") provides for the Company to issue restricted stock awards, including performance-based restricted stock awards, and other equity or cash based awards to employees. Any director, employee or consultant shall be eligible to receive such awards. The Company accounts for stock compensation under ASC 718 - Compensation - Stock Compensation, which requires the Company to expense the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. This expense is recognized ratably over the requisite service period following the date of grant. The fair value of the Company's time-based restricted stock awards is equivalent to the closing stock price on the day of grant. The Company utilizes a third-party valuation firm to measure the fair value of performance-based restricted stock awards at grant date using the Monte Carlo model. The unrecognized compensation cost relating to restricted stock awards and performance-based restricted stock awards will be amortized to expense over the awards’ remaining vesting periods. See Note 15 for further information related to stock-based compensation. Segment Information Consistent with how the Company’s Chief Operating Decision Maker reviews and assesses the Company’s financial performance, the Company has two reportable segments, GLP Capital, L.P. (a wholly-owned subsidiary of GLPI through which GLPI owns substantially all of its real estate assets) ("GLP Capital") and the TRS Properties. The GLP Capital reportable segment consists of the leased real property and represents the majority of the Company’s business. The TRS Properties reportable segment consists of Hollywood Casino Perryville and Hollywood Casino Baton Rouge. See Note 16 for further information with respect to the Company’s segments. Statements of Cash Flows The Company has presented the consolidated statements of cash flows using the indirect method, which involves the reconciliation of net income to net cash flow from operating activities. |
Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions The Company accounts for its acquisitions of real estate assets as asset acquisitions under ASC 805 - Business Combinations. Under asset acquisition accounting, transaction costs incurred to acquire the purchased assets are also included as part of the asset cost. Current Year Acquisitions On October 15, 2018, in conjunction with the Penn-Pinnacle Merger the Company acquired the real property assets of Plainridge Park Casino from Penn for approximately $250.9 million. This property was added to the Amended Pinnacle Master Lease via the fourth amendment to the Pinnacle Master Lease and is leased to Penn who will continue to operate the property. The initial annual cash rent of $25.0 million for Plainridge Park will not be subject to rent escalators or adjustments. Also in conjunction with the Penn-Pinnacle Merger, the Pinnacle Master Lease was amended via the fourth amendment to such lease to allow for the sale of the operating assets of Ameristar Casino Hotel Kansas City, Ameristar Casino Resort Spa St. Charles and Belterra Casino Resort from Pinnacle to Boyd and to increase fixed rent under the lease by an additional $13.9 million annually. The Company entered into a new unitary triple-net master lease agreement with Boyd for these properties on terms similar to the Company’s existing master leases. As a result of the fourth amendment to the Pinnacle Master Lease, the Company reassessed the lease's classification and determined the new lease agreement qualified for operating lease treatment under ASC 840. Therefore, subsequent to the Penn-Pinnacle Merger, the Amended Pinnacle Master Lease is treated as an operating lease in its entirety, the building assets of $2.6 billion previously recorded as an investment in direct financing lease on the Company's consolidated balance sheet were recorded as real estate assets on the Company's consolidated balance sheet and all rent received under the Amended Pinnacle Master Lease is recorded as rental income on the Company's consolidated statement of income. The Amended Pinnacle Master Lease was assumed by Penn at the consummation of the Penn-Pinnacle Merger. On October 1, 2018, the Company acquired the real property assets of five casino properties from Tropicana and certain of its affiliates for approximately $992.5 million, pursuant to the Real Estate Purchase Agreement dated April 15, 2018 between Tropicana and GLP Capital, which was subsequently amended on October 1, 2018. Pursuant to the terms of the Amended Real Estate Purchase Agreement, the Company acquired the real estate assets of Tropicana Atlantic City, Tropicana Evansville, Tropicana Laughlin, Trop Casino Greenville and the Belle of Baton Rouge and the rights to six long-term ground leases for land on which the operations of the acquired Tropicana properties reside. Concurrent with the Tropicana Acquisition, Eldorado acquired the operating assets of these properties from Tropicana pursuant to the Tropicana Merger Agreement and leased the GLP Assets from the Company pursuant to the terms of a new unitary triple-net master lease with a 15-year initial term, with no purchase option followed by four successive 5-year renewal periods (exercisable by Eldorado) on the same terms and conditions. Initial annual rent under the Eldorado Master Lease is $87.6 million. Purchase price allocations are primarily based on the fair values of assets acquired and liabilities assumed at the time of acquisition. The following table summarizes the purchase price allocation of the assets acquired in the Tropicana Acquisition (in thousands):
Prior Year Acquisitions 2017 On May 1, 2017, the Company acquired the real property assets of Bally's Casino Tunica (subsequently re-branded as the 1st Jackpot Casino) and Resorts Casino Tunica (the "Tunica Properties") for $82.9 million. The Company acquired both Bally's Casino Tunica and Resorts Casino Tunica, as well as the Resorts Hotel and land at Bally's Casino Tunica. Land rights to three long-term ground leases related to the Tunica Properties were also acquired in the transaction. Penn purchased the operating assets of the Tunica Properties directly from the seller, operates both properties and leases the real property assets from the Company under the Penn Master Lease. 2016 On September 9, 2016, the Company acquired the real property assets of the Meadows Racetrack and Casino (the "Meadows") from Cannery Casino Resorts ("CCR") for approximately $323.3 million. Concurrent with the Company's purchase of the Meadows' real estate assets, Pinnacle purchased the entities holding the Meadows' gaming and racing licenses and operating assets from CCR. GLPI leases the Meadows' real property assets to Penn (following the Penn-Pinnacle Merger) under a triple-net lease with an initial term of 10 years with no purchase option and the option to renew for three successive 5-year terms and one 4-year term, at Penn's option (the "Meadows Lease"). On April 28, 2016, the Company acquired substantially all of the real estate assets of Pinnacle, adding 14 properties to its real estate portfolio. The acquisition of Pinnacle's real estate assets was the final step in a series of transactions contemplated by the July 20, 2015 merger agreement between GLPI, Gold Merger Sub, LLC, a wholly owned subsidiary of GLPI ("Merger Sub"), and Pinnacle providing for the merger of Pinnacle with and into Merger Sub, with Merger Sub surviving the merger as a wholly owned subsidiary of GLPI (the "Pinnacle Merger"). Following the Pinnacle Merger, GLPI contributed all of the equity interests of Gold Merger Sub to GLP Capital, L.P., a Pennsylvania limited partnership and a wholly owned subsidiary of GLPI ("GLP Capital"). Approval of the Pinnacle Merger by GLPI shareholders and Pinnacle stockholders was obtained at separate special meetings held on March 15, 2016. In order to effect the acquisition of the majority of Pinnacle’s real property assets, prior to the Pinnacle Merger, Pinnacle caused certain assets relating to its operating business to be transferred to, and liabilities relating thereto to be assumed by a newly formed wholly owned subsidiary of Pinnacle ("OpCo"). Immediately following the separation of its real property assets and gaming and other operating assets, Pinnacle distributed to its stockholders all of the issued and outstanding shares of common stock of OpCo. As described above, on April 28, 2016, Pinnacle merged with and into Merger Sub, as described in more detail in the joint proxy statement/prospectus filed with a Registration Statement on Form S-4 (No. 333-206649) initially filed by GLPI with the SEC on December 23, 2015 and declared effective on February 16, 2016 (the "Joint Proxy Statement/Prospectus"), completing the Pinnacle Merger. Merger Sub, as the surviving company in the Pinnacle Merger, owns substantially all of Pinnacle’s real estate assets that were retained or transferred to Pinnacle in the separation and originally leased those assets back to Pinnacle pursuant to the Pinnacle Master Lease. Subsequent to the Penn-Pinnacle Merger, a wholly-owned subsidiary of Penn operates the leased gaming facilities as a tenant under the Amended Pinnacle Master Lease Agreement. At the effective time of the Pinnacle Merger, each share of Pinnacle common stock issued and outstanding immediately prior to the effective time of the Pinnacle Merger was converted into 0.85 of a share of GLPI common stock, with cash paid in lieu of the issuance of fractional shares of GLPI common stock. Shares of GLPI common stock were also issued to satisfy GLPI's portion of the outstanding Pinnacle employee equity and cash-based incentive awards outstanding at the closing date. Approximately 56.0 million shares of GLPI common stock were issued as consideration in the Pinnacle Merger. Additionally, GLPI repaid $2.7 billion of Pinnacle's debt and paid $226.8 million of Pinnacle's transaction expenses related to the Pinnacle Merger. Inclusive of $28.3 million of the Company's own transaction expenses, the purchase price of the Pinnacle real estate assets was $4.8 billion. The following tables summarize the consideration transferred in the Pinnacle Merger and the purchase price allocation to the assets acquired in the Pinnacle Merger (in thousands):
As detailed above, the Company paid $3.0 billion in cash for the acquired Pinnacle real estate assets. In addition, as part of the consideration paid for the Pinnacle real estate assets acquired in the Pinnacle Merger, the Company issued shares of its common stock to Pinnacle stockholders and to Pinnacle to satisfy the Company's portion of Pinnacle's employee equity and cash-based incentive awards. The dollar value of the issued shares was $1.8 billion and is considered purchase price. The real estate investments, net represent the land purchased from Pinnacle, while the land rights, net represent the Company's rights to land subject to long-term ground leases. The Company acquired ground leases at several of the Pinnacle properties and immediately subleased the land back to Pinnacle. The investment in direct financing lease, net represented the Company's investment in the buildings and building improvements purchased from Pinnacle at the time of the original Pinnacle transaction. As detailed in Note 8, the Pinnacle Master Lease was originally bifurcated between an operating lease and direct financing lease. The accounting treatment for the buildings purchased under a direct financing lease required the Company to record its initial investment in the buildings as a receivable on its consolidated balance sheet, which was subsequently reduced over the lease term to its estimated residual value. In conjunction with the Penn-Pinnacle Merger, the direct financing lease was unwound and the Pinnacle Master Lease qualified for operating lease treatment in its entirety. For further details refer to Note 8. The purchase price allocated to prepaid expenses and other assets represents the current and long-term portions of a director and officer liability insurance policy purchased from Pinnacle. |
Real Estate Investments |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Investments | Real Estate Investments Real estate investments, net, represent investments in 42 rental properties and the corporate headquarters building and is summarized as follows:
The increase in real estate investments was driven by the Penn-Pinnacle Merger, which resulted in the reclassification of the building assets under the Pinnacle Master Lease that were previously classified as an investment in direct financing lease on the Company's balance sheet to real estate investments and to a lesser extent the Tropicana Acquisition and the purchase of Plainridge Park. For further information on the Company's acquisitions see Note 4. |
Land Rights |
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Ground Leases, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Land Rights | Land Rights Land rights, net represent the Company's rights to land subject to long-term ground leases. The Company obtained ground lease rights through the acquisition of several of its rental properties and immediately subleased the land to its tenants. These land rights represent the below market value of the related ground leases. The Company assessed the acquired ground leases to determine if the lease terms were favorable or unfavorable, given market conditions at the acquisition date. Because the market rents to be received under the Company's triple-net tenant leases were greater than the rents to be paid under the acquired ground leases, the Company concluded that the ground leases were below market and were therefore required to be recorded as a definite lived asset (land rights) on its books. The land rights are amortized over the individual lease term of each ground lease, including all renewal options, which ranged from 10 years to 92 years at their respective acquisition dates. Land rights net, consists of the following:
Amortization expense related to the ground leases is recorded within land rights and ground lease expense in the consolidated statements of income and totaled $11.3 million, $10.4 million and $6.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018, estimated future amortization expense related to the Company’s ground leases by fiscal year is as follows (in thousands):
Details of the Company's significant ground leases are as follows: The Company leases land at the Belterra Casino Resort under two ground leases, each with an initial term of 5 years and nine automatic renewals of 5 years each. The renewal options extend the leases through 2049 and are not terminable by the Company. The first ground lease includes a base portion which is adjusted at each renewal based upon the CPI and a variable portion which is adjusted annually based upon 1.5% of gross gaming wins in excess of $100 million. The second ground lease has a fixed rent provision only. The Company leases land at the Ameristar East Chicago property under a ground lease with an initial term of 30 years and two optional renewals of 30 years each. The lease extends through 2086 with all renewals. Rent under the lease is adjusted every 3 years based upon the CPI and does not include a variable rent provision tied to the property's performance. The Company leases land at the River City Hotel and Casino under a ground lease with a term of 99 years that extends through 2108. The lease includes a base portion which is fixed and a variable portion which is adjusted annually based upon 2.5% of the annual gross receipts of the property less fixed rent payments made in the same year. The Company leases land at the L'Auberge Lakes Charles property under a ground lease with an initial term of 10 years and six optional renewals of 10 years each. The lease extends through 2075 with all renewals. Rent under the lease is adjusted annually based upon the CPI and does not include a variable rent provision tied to the property's performance. The Company leases land at the Resorts Casino Tunica property under a ground lease with an initial term of 3 years and nine optional renewals of 5 years each. The lease extends through 2042 with all renewals. The lease has an annual fixed rent provision and does not include a variable rent provision tied to the property's performance. The Company leases land at the 1st Jackpot Casino under two ground leases. The first ground lease has an initial term of 6 years and nine optional renewals of 6 years each. The lease extends through 2054 with all renewals. Rent under this lease is adjusted annually based upon the CPI and does not include a variable rent provision tied to the property's performance. The second ground lease has an initial term of 10 years with ten optional renewals of 5 years each. The lease extends through 2055 with all renewals. The lease has an annual fixed rent provision and a variable portion which is adjusted annually based upon net gaming revenues of up to 4%, dependent on the property's operating results. The Company leases land at the Belle of Baton Rouge property under two ground leases. The first ground lease has an initial term of 5 years and two automatic renewals of 5 years each. The lease extends through 2028 with the automatic renewals. Rent under this lease increases by 3% every 2 years and does not include a variable portion tied to the property's performance. The second ground lease has an initial term of 17 years, followed by one automatic 3-year renewal and eight optional renewals of 10 years each. The lease extends through 2083 with all renewals. Rent under this lease is adjusted every 5 years based upon the CPI and does not include a variable rent provision tied to the property's performance. The Company leases land at the Tropicana Evansville Casino under a ground lease with an initial term of 10 years and two optional 5-year renewals, one optional 12-year renewal, one optional 3-year renewal, and five optional 5-year renewals. The lease extends through 2055 with all renewals. The lease agreement has an annual fixed rent provision, a portion of which was prepaid at the casino's opening and the tenant receives rental credits from the landlord extending through the end of the current term. Additionally, the lease contains a variable portion which is adjusted annually based upon the annual gross receipts of the property. Rent paid to the landlord under this provision is graduated and ranges from 2% to 12% of annual gross receipts dependent on the actual revenues of the property. The Company leases land at the Trop Casino Greenville under three ground leases. The first ground lease has an initial term of 7 years and four optional renewals of varying lengths, which extend the lease through 2038. The lease has an annual fixed rent provision, which is adjusted at each renewal based upon the CPI and does not include a variable rent provision tied to the property's performance. The second ground lease has an initial term of 20 years and six optional renewals of 5 years each. The lease extends through 2044 with all renewals. The lease has an annual fixed rent provision and does not include a variable rent provision tied to the property's performance. The third ground lease has an initial term of 6 years with nine optional renewals of 6 years each. The lease extends through 2057 with all renewals. Rent under the lease is adjusted annually based upon the CPI, with minimum annual increases of 3.3% and does not include a variable rent provision tied to the property's performance. |
Property and Equipment Used in Operations |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment Used in Operations | Property and Equipment Used in Operations Property and equipment used in operations, net, consists of the following and primarily represents the assets utilized at the TRS Properties
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Receivables |
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Financing Receivable, Net [Abstract] | |||||||||||||||||||||||||||||||||||||
Receivables | Receivables Mortgage Loans Receivable At December 31, 2018, the Company has financial interests in two casino properties through secured mortgage loans to the respective casino owner-operators. On October 1, 2018, Eldorado purchased the real estate assets of Lumière Place Casino and Hotel from Tropicana for a cash purchase price of $246.0 million, exclusive of transaction fees. Financing for the transaction was provided by the Company in the form of $246.0 million secured mortgage loan on Lumière Place (the "Lumière Loan"). The Lumière Loan bears interest at a rate equal to approximately 9.00%. Until the one-year anniversary of the closing, the Lumière Loan will be secured by a first mortgage lien on Lumière Place. On the one-year anniversary of the Lumière Loan, the mortgage and the related deed of trust on the Lumière Place property will terminate and the loan will continue unsecured until its final maturity on the two-year anniversary of the closing. The parties anticipate that the Lumière Loan will be fully repaid on or prior to maturity by way of substitution of one or more additional Eldorado properties acceptable to Eldorado and the Company, which will be transferred to the Company and added to the Eldorado Master Lease. On October 15, 2018, Boyd purchased the real estate assets of Belterra Park from Pinnacle for a cash purchase price of $57.7 million, exclusive of transaction fees. Financing for the transaction was provided by the Company in the form of $57.7 million secured mortgage loan on Belterra Park (the "Belterra Park Loan"). The Belterra Park Loan bears interest at a rate equal to 11.11% and matures in connection with the expiration of the Boyd Master Lease (as may be extended at the tenant's option to April 30, 2051). Investment in Direct Financing Lease, Net At the time of the original Pinnacle transaction, the fair value assigned to the land (inclusive of the land rights) at the time of acquisition qualified for operating lease treatment, while the fair value assigned to the buildings was classified as a direct financing lease. Under ASC 840, the accounting treatment for direct financing leases required the Company to record an investment in direct financing leases on its books at lease inception and subsequently recognize interest income and a reduction in the investment for the building portion of rent. This initial net investment was determined by aggregating the total future minimum lease payments attributable to the direct financing lease and the estimated residual value of the property, less unearned income. The interest income recorded under the direct financing lease was included in income from direct financing lease on the Company's consolidated statements of income and was recognized over the original 35-year lease term using the effective interest rate method which produced a constant periodic rate of return on the net investment in the leased property. Furthermore, as the net investment in direct financing lease included only future minimum lease payments, rent that was not fixed and determinable at the lease inception was excluded from the determination of the rent attributable to the leased assets and was therefore recorded as income from direct financing lease in the period earned. The unguaranteed residual value was the Company's estimate of what it could realize upon the sale of the property at the end of the lease term. On October 15, 2018, in conjunction with the Penn-Pinnacle Merger, the Pinnacle Master Lease was amended via the fourth amendment to such lease to allow for the sale of the operating assets of Ameristar Casino Hotel Kansas City, Ameristar Casino Resort Spa St. Charles and Belterra Casino Resort from Pinnacle to Boyd. As a result of this amendment, the Company reassessed the lease's classification and determined the new lease agreement qualified for operating lease treatment under ASC 840. Therefore, subsequent to the Penn-Pinnacle Merger, the Amended Pinnacle Master Lease is treated as an operating lease in its entirety, the building assets previously recorded as an investment in direct financing lease on the Company's consolidated balance sheet were recorded as real estate assets on the Company's consolidated balance sheet and all rent received under the Amended Pinnacle Master Lease is recorded as rental income on the Company's consolidated statement of income. At December 31, 2017, the Company's investment in direct financing lease, net, consisted of the following and represented the building assets initially acquired from Pinnacle:
Loan Receivable In January 2014, the Company completed the asset acquisition of the real property associated with the Casino Queen in East St. Louis, Illinois for $140.7 million. GLPI leases the property back to Casino Queen on a triple-net basis on terms similar to those in the Master Leases. The lease has an initial term of 15 years and the tenant has an option to renew it at the same terms and conditions for four successive five-year periods (the "Casino Queen Lease"). Simultaneously with the Casino Queen acquisition, GLPI also provided Casino Queen with a $43.0 million, five-year term loan at 7% interest, pre-payable at any time, which, together with the sale proceeds, completely refinanced and retired all of Casino Queen’s outstanding long-term debt obligations. On March 13, 2017, the outstanding principal and interest on this loan was repaid in full and GLPI simultaneously provided a new unsecured $13.0 million, 5.5-year term loan to CQ Holding Company, Inc., an affiliate of Casino Queen, to partially finance their acquisition of Lady Luck Casino in Marquette, Iowa. The cash proceeds were net settled. The new loan bears an interest rate of 15% and is pre-payable at any time. The Company evaluates loans for impairment when it is probable that it will not be able to collect all amounts due according to contractual terms. All amounts due under the contractual terms means that both contractual interest payments and contractual principal payments of a loan will be collected as scheduled in the loan agreement. Indicators of impairment may include delinquent payments, a decline in the credit worthiness of a debtor, or a decline in the underlying property/tenant’s performance. The Company measures loan impairment based upon the present value of expected future cash flows discounted at the loan’s original effective interest rate. The determination of whether loans are impaired involves judgments and assumptions based on objective and subjective factors. If an impairment occurs, the Company will reduce the carrying value of the loan and record a corresponding charge to net income. On June 12, 2018, the Company received a Notice of Event of Default under the Senior Credit Agreement of CQ Holding Company from Citizens Bank, N.A. ("Citizens"), which reported a covenant default under their senior secured agreement. Under the terms of that agreement, when an event of default occurs, CQ Holding Company is prohibited from making cash payments to unsecured lenders such as GLPI. Therefore, the interest due from CQ Holding Company in June, September and December 2018 under the Company's unsecured loan was paid in kind in the amount of $1.5 million. In addition to the covenant violation noted above under the senior credit agreement with Citizens, CQ Holding Company also had a payment default under their senior credit agreement with Citizens. Furthermore, the Company has notified Casino Queen of Events of Default under the Company's unsecured loan with CQ Holding Company, related to financial covenant violations during the year ended December 31, 2018. During the fourth quarter of 2018, the Company became aware of Casino Queen's intent to sell its operations to a third-party gaming operator. At December 31, 2018, active negotiations for the sale of Casino Queen's operations were taking place. Despite the payment and covenant defaults noted above, at this time, full payment of the principal is still expected, due to the anticipation that the operations will be sold in the near term for an amount allowing for repayment of the full $13.0 million of loan principal due to GLPI. However, the paid-in-kind interest due to the Company at December 31, 2018 is not expected to be collected, resulting in an impairment charge of $1.5 million during the fourth quarter of 2018. The Company did not recognize the paid-in-kind interest income due to the Company for the quarter ended December 31, 2018 and took a charge for the previously recognized paid-in-kind interest income through the Company’s consolidated statement of earnings as a reversal of the paid-in-kind interest income recognized earlier in the year. The Company cannot be 100% certain that the sale of Casino Queen's operations will come to fruition. The culmination of the actual transaction could result in further impairment charges for the Company. At December 31, 2018, the balance of the loan is $13.0 million. The loan balance is recorded at carrying value which approximates fair value. At December 31, 2018, all lease payments due from Casino Queen remain current and the Casino Queen Lease remains in compliance with all covenants. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The only goodwill of the Company is the goodwill recorded on the books of Hollywood Casino Baton Rouge, in connection with Penn's purchase of this entity prior to the Spin-Off. The original assets and liabilities of GLPI, including goodwill and intangible assets were recorded at their respective historical carrying values at the time of the Spin-Off in accordance with the provisions of ASC 505. There is no goodwill recorded on the Company's GLP Capital segment, which holds the Company's REIT operations. Changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 are as follows:
During the year ended December 31, 2018, the Company recorded a goodwill impairment charge of $59.5 million in connection with its operations at Hollywood Casino Baton Rouge. This charge was driven by general market deterioration in the Baton Rouge region and the smoking ban at all Baton Rouge, Louisiana casinos that went into effect during the second quarter of 2018, both of which significantly impacted the Company's forecasted cash flows for this reporting unit. Subsequent to conducting its impairment tests on other long-lived assets, including the gaming license described below, the Company performed Step 1 of the goodwill impairment test, which indicated a potential impairment. Step 1 of the goodwill impairment test involved the determination of the fair value of the Baton Rouge reporting unit and its comparison to the reporting unit's carrying amount. Using a discounted cash flow model, which relied on projected EBITDA to determine the reporting unit's future cash flows, the Company calculated a fair value that was less than the reporting unit's carrying value and proceeded to Step 2. In Step 2 of the goodwill impairment test, the Company performed a fair value allocation as if the reporting unit had been acquired in a business combination and assigned the fair value of the reporting unit calculated in Step 1 to all assets and liabilities of the reporting unit, including any unrecognized intangible assets. Any residual fair value was allocated to goodwill to arrive at the implied fair value of goodwill. After completing the Step 2 allocation, the Company determined the goodwill on its Baton Rouge reporting unit had an implied fair value of $16.1 million and recorded the impairment charge of $59.5 million during the fourth quarter of 2018. In accordance with ASC 350, the Company considers its gaming license at the Hollywood Casino Perryville property an indefinite-lived intangible asset that does not require amortization based on the Company's future expectations to operate this casino indefinitely, as well as the gaming industry's historical experience in renewing these intangible assets at minimal cost with various state gaming commissions. Rather, the Company's gaming license is tested annually, or more frequently if indicators of impairment exist, for impairment by comparing the fair value of the recorded asset to its carrying amount. If the carrying amount of the indefinite-life intangible asset exceeds its fair value, an impairment loss is recognized. Hollywood Casino Perryville's gaming license will expire in September 2025, fifteen years from the casino's opening date. The Company expects to expense any costs related to the gaming license renewal as incurred. The Company conducted its annual impairment assessment of the gaming license on October 1, 2018 using the Greenfield Method which estimates the fair value of the gaming license assuming the Company built a casino with similar utility to that of the existing facility. This method also assumes a theoretical start-up company going into business without any assets other than the intangible asset being valued. Based upon these assumptions and the Company's current forecasted cash flows for this reporting unit, the gaming license was not impaired. At both December 31, 2018 and 2017, the gaming license had a carrying value of $9.6 million. |
Long-term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-term Debt Long-term debt, net of current maturities and unamortized debt issuance costs is as follows:
The following is a schedule of future minimum repayments of long-term debt as of December 31, 2018 (in thousands):
Senior Unsecured Credit Facility The Company's senior unsecured credit facility (the "Credit Facility"), consists of a $1,175 million revolving credit facility and a $525 million Term Loan A-1 facility. On May 21, 2018, the Company entered into the second amendment to the Credit Facility, which increased the Company's revolving commitments to an aggregate principal amount of $1,100 million, eliminated the Term Loan A facility, required the Company to repay a portion of the Term Loan A-1 facility and extended the maturity date of the revolving credit facility. On October 10, 2018, the Company entered into the third amendment to the Credit Facility, which further increased the Company's revolving commitments to an aggregate principal amount of $1,175 million. The revolving credit facility matures on May 21, 2023 and the Term Loan A-1 facility matures on April 28, 2021. The Company recorded a loss on the early extinguishment of debt, related to the second amendment to the Credit Facility, of approximately $1.0 million for the proportional amount of unamortized debt issuance costs associated with the extinguished Term Loan A facility and related to the banks that are no longer participating in the Credit Facility. At December 31, 2018, the Credit Facility had a gross outstanding balance of $927 million. Additionally, at December 31, 2018, the Company was contingently obligated under letters of credit issued pursuant to the Credit Facility with face amounts aggregating approximately $0.4 million, resulting in $772.6 million of available borrowing capacity under the revolving credit facility as of December 31, 2018. The interest rates payable on the loans are, at the Company's option, equal to either a LIBOR rate or a base rate plus an applicable margin, which ranges from 1.0% to 2.0% per annum for LIBOR loans and 0.0% to 1.0% per annum for base rate loans, in each case, depending on the credit ratings assigned to the Credit Facility. At December 31, 2018, the applicable margin was 1.50% for LIBOR loans and 0.50% for base rate loans. In addition, the Company is required to pay a commitment fee on the unused portion of the commitments under the revolving facility at a rate that ranges from 0.15% to 0.35% per annum, depending on the credit ratings assigned to the Credit Facility. At December 31, 2018, the commitment fee rate was 0.25%. The Company is not required to repay any loans under the Credit Facility prior to maturity on May 21, 2023 and may prepay all or any portion of the loans under the Credit Facility prior to maturity without premium or penalty, subject to reimbursement of any LIBOR breakage costs of the lenders. The Company's wholly owned subsidiary, GLP Capital is the primary obligor under the Credit Facility, which is guaranteed by GLPI. The Credit Facility contains customary covenants that, among other things, restrict, subject to certain exceptions, the ability of GLPI and its subsidiaries to grant liens on their assets, incur indebtedness, sell assets, make investments, engage in acquisitions, mergers or consolidations or pay certain dividends and other restricted payments. The Credit Facility contains the following financial covenants, which are measured quarterly on a trailing four-quarter basis: a maximum total debt to total asset value ratio, a maximum senior secured debt to total asset value ratio, a maximum ratio of certain recourse debt to unencumbered asset value and a minimum fixed charge coverage ratio. In addition, GLPI is required to maintain a minimum tangible net worth and its status as a REIT on and after the effective date of its election to be treated as a REIT, which the Company elected on its 2014 U.S. federal income tax return. GLPI is permitted to pay dividends to its shareholders as may be required in order to maintain REIT status, subject to the absence of payment or bankruptcy defaults. GLPI is also permitted to make other dividends and distributions subject to pro forma compliance with the financial covenants and the absence of defaults. The Credit Facility also contains certain customary affirmative covenants and events of default, including the occurrence of a change of control and termination of the Penn Master Lease (subject to certain replacement rights). The occurrence and continuance of an event of default under the Credit Facility will enable the lenders under the Credit Facility to accelerate the loans and terminate the commitments thereunder. At December 31, 2018, the Company was in compliance with all required financial covenants under the Credit Facility. Senior Unsecured Notes At December 31, 2018, the Company had an outstanding balance of $4,975 million of senior unsecured notes consisting of the following: On September 26, 2018, the Company issued $750 million of 5.30% senior unsecured notes maturing on January 15, 2029 at an issue price equal to 99.985% of the principal amount and $350 million of 5.25% senior unsecured notes maturing on June 1, 2025 at an issue price equal to 102.148% of the principal amount (the "New 2025 Notes"). The New 2025 Notes will become part of the same series as, and are expected to be fungible with, the Company's previously issued 5.25% senior notes due 2025, $500 million aggregate principal amount of which were originally issued on May 21, 2018 (the "Initial 2025 Notes"). Interest on the notes maturing in 2025 is payable semi-annually on June 1 and December 1 of each year, commencing on December 1, 2018 and is deemed to accrue from May 21, 2018, the issuance date of the Initial 2025 Notes. Interest on the notes maturing in 2029 is payable semi-annually on January 15 and July 15 of each year, commencing on January 15, 2019. The net proceeds from the sale of the New 2025 Notes and the notes maturing in 2029, together with funds available under the revolving credit facility were used in October 2018 to (i) finance GLPI’s acquisition of the real property assets of Plainridge Park Casino from Penn and its issuance of a secured mortgage loan to Boyd in connection with Boyd’s acquisition of the real property assets of Belterra Park Gaming & Entertainment Center, (ii) finance GLPI’s acquisition of substantially all the real property assets of five gaming facilities owned by Tropicana and its issuance of a mortgage loan to Eldorado in connection with Eldorado’s acquisition of substantially all the real property assets of Lumière Place, and (iii) pay the estimated transaction fees and expenses associated with the transactions. On May 21, 2018, the Company completed a cash tender offer (the "Tender Offer") to purchase any and all of the outstanding $550 million aggregate principal of its 4.375% senior unsecured notes due 2018. The Company received tenders from the holders of approximately $393.5 million in aggregate principal of these notes, or approximately 72%, in connection with the Tender Offer at a price of 100.396% of the unpaid principal amount plus accrued and unpaid interest through the settlement date. The Company recorded a loss on the early extinguishment of debt, related to the Tender Offer of approximately $2.5 million for the proportional amount of unamortized debt issuance costs associated with the tendered notes and the difference between the reaquisition price of the tendered notes and their net carrying value. On August 16, 2018, the Company redeemed the remaining notes for 100% of the principal amount and accrued and unpaid interest to, but not including the redemption date. Also on May 21, 2018, the Company issued $500 million of 5.25% senior unsecured notes maturing on June 1, 2025 and $500 million of 5.75% senior unsecured notes maturing on June 1, 2028. Interest is payable semi-annually on June 1 and December 1 of each year, commencing on December 1, 2018. The net proceeds from the sale of these notes were used (i) to prepay and extinguish the outstanding borrowings under the Term Loan A facility under the Credit Facility and to repay a portion of the outstanding borrowings under the Term Loan A-1 facility, (ii) to finance the tender offer of the 2018 Notes, (iii) to redeem the remaining 2018 Notes and (iv) to pay fees and expenses to amend the Company's Credit Facility, as described above. On April 28, 2016, in connection with the acquisition of Pinnacle, the Company issued $400 million of 4.375% senior unsecured notes maturing on April 15, 2021 and $975 million of 5.375% senior unsecured notes maturing on April 15, 2026. Interest on these notes is payable semi-annually on April 15 and October 15 of each year. The net proceeds from the sale of these notes were used (i) to finance the repayment, redemption and/or discharge of certain Pinnacle debt obligations that the Company assumed in the Pinnacle Merger, (ii) to pay transaction-related fees and expenses related to the Pinnacle Merger and (iii) for general corporate purposes. On October 30 and 31, 2013, the Company issued $2,050 million aggregate principal amount of senior unsecured notes: $550 million of 4.375% senior unsecured notes that matured in 2018; $1,000 million of 4.875% senior unsecured notes maturing on November 1, 2020; and $500 million of 5.375% senior unsecured notes maturing on November 1, 2023. Interest on these notes is payable semi-annually on May 1 and November 1 of each year. The net proceeds from the sale of these notes, together with borrowings under the Credit Facility were used (i) to make distributions directly and indirectly to Penn in partial exchange for the contributions of real property assets by Penn and CRC Holdings, Inc., a Penn subsidiary, to the Company in connection with the Spin-Off, (ii) to pay related fees and expenses, (iii) to partially repay amounts funded under the revolving credit facility and (iv) to fund future earnings and profits distributions and for working capital purposes. The Company may redeem the senior unsecured notes, collectively, the "Notes" of any series at any time, and from time to time, at a redemption price of 100% of the principal amount of the Notes redeemed, plus a "make-whole" redemption premium described in the indenture governing the Notes, together with accrued and unpaid interest to, but not including, the redemption date, except that if Notes of a series are redeemed 90 or fewer days prior to their maturity, the redemption price will be 100% of the principal amount of the Notes redeemed, together with accrued and unpaid interest to, but not including, the redemption date. If GLPI experiences a change of control accompanied by a decline in the credit rating of the Notes of a particular series, the Company will be required to give holders of the Notes of such series the opportunity to sell their Notes of such series at a price equal to 101% of the principal amount of the Notes of such series, together with accrued and unpaid interest to, but not including, the repurchase date. The Notes also are subject to mandatory redemption requirements imposed by gaming laws and regulations. The Notes were issued by GLP Capital, L.P. and GLP Financing II, Inc. (the "Issuers"), two wholly-owned subsidiaries of GLPI, and are guaranteed on a senior unsecured basis by GLPI. The guarantees of GLPI are full and unconditional. The Notes are the Issuers' senior unsecured obligations and rank pari passu in right of payment with all of the Issuers' senior indebtedness, including the Credit Facility, and senior in right of payment to all of the Issuers' subordinated indebtedness, without giving effect to collateral arrangements. See Note 19 for additional financial information on the parent guarantor and subsidiary issuers of the Notes. The Notes contain covenants limiting the Company’s ability to: incur additional debt and use its assets to secure debt; merge or consolidate with another company; and make certain amendments to the Penn Master Lease. The Notes also require the Company to maintain a specified ratio of unencumbered assets to unsecured debt. These covenants are subject to a number of important and significant limitations, qualifications and exceptions. At December 31, 2018, the Company was in compliance with all required financial covenants under the Notes. Capital Lease The Company assumed the capital lease obligation related to certain assets at its Aurora, Illinois property. GLPI recorded the asset and liability associated with the capital lease on its balance sheet. The original term of the capital lease was 30 years and it will terminate in 2026. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Separation and Distribution Agreements Pursuant to a Separation and Distribution Agreement between Penn and GLPI, any liability arising from or relating to legal proceedings involving the businesses and operations of Penn’s real property holdings prior to the Spin-Off (other than any liability arising from or relating to legal proceedings where the dispute arises from the operation or ownership of the TRS Properties) will be retained by Penn, and Penn will indemnify GLPI (and its subsidiaries, directors, officers, employees and agents and certain other related parties) against any losses it may incur arising from or relating to such legal proceedings. Similarly, pursuant to a Separation and Distribution Agreement between Pinnacle's operating company and GLPI (as successor to Pinnacle Entertainment), any liability arising from or relating to legal proceedings involving the business and operations of Pinnacle's real property holdings prior to the Pinnacle Merger will be retained by Pinnacle, and Pinnacle will indemnify GLPI (and its subsidiaries, directors, officers, employees and agents and certain other related parties) against any losses it may incur arising from or relating to such legal proceedings. Effective October 15, 2018, Penn assumed all obligations of Pinnacle as pursuant to a merger of Pinnacle with and into a subsidiary of Penn. There can be no assurance that Penn will be able to fully satisfy these indemnification obligations. Moreover, even if the Company ultimately succeeds in recovering from Penn any amounts for which the Company is liable, it may be temporarily required to bear those losses. Litigation The Company is subject to various legal and administrative proceedings relating to personal injuries, employment matters, commercial transactions, and other matters arising in the normal course of business. The Company does not believe that the final outcome of these matters will have a material adverse effect on the Company’s consolidated financial position or results of operations. In addition, the Company maintains what it believes is adequate insurance coverage to further mitigate the risks of such proceedings. However, such proceedings can be costly, time consuming, and unpredictable and, therefore, no assurance can be given that the final outcome of such proceedings may not materially impact the Company’s financial condition or results of operations. Further, no assurance can be given that the amount or scope of existing insurance coverage will be sufficient to cover losses arising from such matters. Operating Lease Commitments As part of the Spin-Off, Penn assigned to GLPI various leases for the land and buildings acquired in connection with the Spin-Off. The lease agreements contain base lease payments and, in some instances, a percentage rent based on a percent of adjusted gaming wins, as described in the respective leases. The portion of the rent that is fixed and determinable is included in the schedule below as a future commitment, while the portion of the rent that is variable is excluded from future commitments as the amounts are not fixed and determinable at December 31, 2018 and therefore considered contingent rent. The following is a description of the more significant lease contracts assigned to GLPI at the Spin-Off: The Company leases land at the Boomtown Casino Biloxi under two ground leases. The first ground lease has a term of 99 years. The annual rental payments under the first ground lease are increased every 5 years by 15%. The second ground lease has an initial term of 10 years and is automatically extended for additional 10-year terms unless notice is provided to the landlord within 180 days of the current term's end date. The annual rental payments under the second ground lease are increased every 5 years by 4%. Neither of the leases include a variable rent provision tied to the property's performance The Company has an operating lease for the land utilized in connection with the operations of Hollywood Casino Tunica in Tunica, Mississippi. The lease has a five-year initial term and nine five-year renewals at the tenant's option. The lease agreement has an annual fixed rent provision, as well as an annual revenue-sharing provision, which is equal to the result obtained by subtracting the fixed rent provision from 4% of gross revenues. The Company has an operating lease with the City of Bangor for the land utilized in connection with the operations of Hollywood Casino Bangor. Rent under the lease is adjusted every 5 years based upon the CPI and does not include a variable rent provision tied to the property's performance. The initial term of the lease is 15 years, with three ten-year renewal options. The Company leases land at the Argosy Casino Alton under a ground lease with a 30-year initial term and two optional renewals of 10 years each. The lease agreement contains a fixed rent provision and does not include a variable portion tied to the property's performance. The Company leases land at Hollywood Casino Aurora under a ground lease with a 49-year initial term and five optional renewals of 10 years each. The lease agreement contains a fixed rent provision which is adjusted annually based upon the CPI and does not include a variable rent provision tied to the property's performance. The Company also obtained ground lease rights through the acquisition of several of its rental properties and immediately subleased the land to its tenants. The Company records revenue for the ground lease rent paid by its tenants with an offsetting expense in land rights and ground lease expense within the consolidated statements of income as the Company has concluded that as the lessee it is the primary obligor under these ground leases. However, the Company subleases these ground leases back to its tenants, who are responsible for payment directly to the landlord. The portion of the ground lease rent that is fixed and determinable is included in the schedule below as a future commitment, while the portion of the ground lease rent that is variable is excluded from future commitments as the amounts are not fixed and determinable at December 31, 2018 and therefore considered contingent rent. Details of the acquired ground leases are below: During October 2018, the Company acquired the real estate assets of five properties from Tropicana, including the rights to land subject to long-term ground leases. The Company assumed six ground leases related to the acquired Tropicana Properties and immediately subleased the land to Eldorado, who is responsible for payment directly to the landlord. For those ground leases with optional renewal terms extending beyond the 15-year lease term of the Eldorado Master Lease, the Company has included only the renewals that align most closely to the 2033 termination date of the Eldorado Master Lease in the schedule below, as it cannot be reasonably assured it will renew ground leases for land subleased to Eldorado beyond the term of the Eldorado Master Lease. The following is a description of the lease contracts assumed from the acquisition of the Tropicana Properties: The Company leases land at the Belle of Baton Rouge property under two ground leases. The first ground lease has an initial term of 5 years and two automatic renewals of 5 years each. The lease extends through 2028 with the automatic renewals. Rent under this lease increases by 3% every 2 years and does not include a variable portion tied to the property's performance. The second ground lease has an initial term of 17 years, followed by one automatic 3-year renewal and eight optional renewals of 10 years each. The lease extends through 2083 with all renewals. Rent under this lease is adjusted every 5 years based upon the CPI and does not include a variable rent provision tied to the property's performance. The Company leases land at the Tropicana Evansville Casino under a ground lease with an initial term of 10 years and two optional 5-year renewals, one optional 12-year renewal, one optional 3-year renewal, and five optional 5-year renewals. The lease extends through 2055 with all renewals. The lease agreement has an annual fixed rent provision, a portion of which was prepaid at the casino's opening and the tenant receives rental credits from the landlord extending through the end of the current term. Additionally, the lease contains a variable portion which is adjusted annually based upon the annual gross receipts of the property. Rent paid to the landlord under this provision is graduated and ranges from 2% to 12% of annual gross receipts dependent on the actual revenues of the property. The Company leases land at the Trop Casino Greenville under three ground leases. The first ground lease has an initial term of 7 years and four optional renewals of varying lengths, which extend the lease through 2038. The lease has an annual fixed rent provision, which is adjusted at each renewal based upon the CPI and does not include a variable rent provision tied to the property's performance. The second ground lease has an initial term of 20 years and six optional renewals of 5 years each. The lease extends through 2044 with all renewals. The lease has an annual fixed rent provision and does not include a variable rent provision tied to the property's performance. The third ground lease has an initial term of 6 years with nine optional renewals of 6 years each. The lease extends through 2057 with all renewals. Rent under the lease is adjusted annually based upon the CPI, with minimum annual increases of 3.3% and does not include a variable rent provision tied to the property's performance. During May 2017, the Company acquired the real estate assets of the Tunica Properties, including the rights to land subject to long-term ground leases. The Company assumed three ground leases related to the acquired Tunica Properties and immediately subleased the land to Penn, who is responsible for payment directly to the landlord. For those ground leases with optional renewal terms extending beyond the 35-year lease term of the Penn Master Lease, the Company has included only the renewals that align most closely to the 2048 termination date of the Penn Master Lease in the schedule below, as it cannot be reasonably assured it will renew ground leases for land subleased to Penn beyond the term of the Penn Master Lease. The following is a description of the lease contracts assumed from the acquisition of the Tunica Properties: The Company leases land at the Resorts Casino Tunica property under a ground lease with an initial term of 3 years and nine optional renewals of 5 years each. The lease extends through 2042 with all renewals. The lease has an annual fixed rent provision and does not include a variable portion. The Company leases land at the 1st Jackpot Casino under two ground leases. The first ground lease has an initial term of 6 years and nine optional renewals of 6 years each. The lease extends through 2054 with all renewals. Rent under this lease is adjusted annually based upon the CPI and does not include a variable portion. The second lease has an initial term of 10 years with ten optional renewals of 5 years each. The lease extends through 2055 with all renewals. The lease has an annual fixed rent provision and a variable portion which is adjusted annually based upon net gaming revenues of up to 4%, dependent on the property's operating results. During April 2016, the Company acquired the majority of the real estate assets of Pinnacle, including the rights to land subject to long-term ground leases. The Company assumed ground leases at several of the acquired Pinnacle properties and immediately subleased the land back to Pinnacle. Subsequent to the Penn-Pinnacle Merger in October 2018, Penn assumed the ground leases at the Ameristar East Chicago, River City Hotel and Casino and L'Auberge Lakes Charles properties and Boyd assumed the ground leases at the Belterra Casino Resort property. Penn and Boyd are responsible for payment directly to the respective landlords at these properties. For those ground leases with optional renewal terms extending beyond the 10-year lease term of the Amended Pinnacle Master Lease and the Boyd Master Lease, the Company has included only the renewals that align most closely to the 2026 termination date of the Amended Pinnacle Master Lease and the Boyd Master Lease in the schedule below, as it cannot be reasonably assured it will renew ground leases for land subleased to Penn and Boyd beyond the terms of the Amended Pinnacle Master Lease and the Boyd Master Lease. The following is a description of the significant lease contracts originally assumed from Pinnacle: The Company leases land at the Belterra Casino Resort under two ground leases, each with an initial term of 5 years and nine automatic renewals of 5 years each. The renewal options extend the leases through 2049 and are not terminable by the Company. The first ground lease includes a base portion which is adjusted at each renewal based upon the CPI and a variable portion which is adjusted annually based upon 1.5% of gross gaming wins in excess of $100 million. The second ground lease has a fixed rent provision only. The Company leases land at the Ameristar East Chicago property under a ground lease with an initial term of 30 years and two optional renewals of 30 years each. The lease extends through 2086 with all renewals. Rent under the lease is adjusted every 3 years based upon the CPI and does not include a variable rent provision tied to the property's performance. The Company leases land at the River City Hotel and Casino under a ground lease with a term of 99 years that extends through 2108. The lease includes a base portion which is fixed and a variable portion which is adjusted annually based upon 2.5% of the annual gross receipts of the property less fixed rent payments made in the same year. The Company leases land at the L'Auberge Lakes Charles property under a ground lease with an initial term of 10 years and six optional renewals of 10 years each. The lease extends through 2075 with all renewals. Rent under the lease is adjusted annually based upon the CPI and does not include a variable rent provision tied to the property's performance. In addition, the Company is liable under numerous operating leases for equipment and other miscellaneous assets, which expire at various dates through 2023. Total rental expense under these agreements was $18.9 million, $15.8 million and $11.0 million for the years ended December 31, 2018, 2017 and 2016. This includes rent expense under the leases assigned to the Company at Spin-Off, leases for equipment and miscellaneous assets and the fixed and variable rent under the ground leases discussed above. The future minimum lease commitments, as of inception of the lease, relating to noncancelable operating leases at December 31, 2018 are as follows (in thousands):
(1) The above table excludes contingent rent in accordance with ASC 840. Employee Benefit Plans The Company maintains a defined contribution plan under the provisions of Section 401(k) of the Internal Revenue Code of 1986, as amended, which covers all eligible employees. The plan enables participating employees to defer a portion of their salary and/or their annual bonus in a retirement fund to be administered by the Company. The Company makes a discretionary match contribution of 50% of employees' elective salary deferrals, up to a maximum of 6% of eligible employee compensation. The matching contributions for the defined contribution plan were $0.3 million for each of the years ended December 31, 2018, 2017 and 2016. The Company maintains a non-qualified deferred compensation plan that covers most management and other highly-compensated employees. The plan allows the participants to defer, on a pre-tax basis, a portion of their base annual salary and/or their annual bonus, and earn tax-deferred earnings on these deferrals. The plan also provides for matching Company contributions that vest over a five-year period. The Company has established a Trust, and transfers to the Trust, on a periodic basis, an amount necessary to provide for its respective future liabilities with respect to participant deferral and Company contribution amounts. The Company's matching contributions for the non-qualified deferred compensation plan for the years ended December 31, 2018, 2017 and 2016 were $0.7 million, $0.6 million and $0.7 million, respectively. The Company's deferred compensation liability, which was included in other liabilities within the consolidated balance sheet, was $22.8 million and $22.7 million at December 31, 2018 and 2017, respectively. Assets held in the Trust were $22.7 million and $22.6 million at December 31, 2018 and 2017, respectively, and are included in other assets within the consolidated balance sheet. Labor Agreements Some of Hollywood Casino Perryville's employees are currently represented by labor unions. The Seafarers Entertainment and Allied Trade Union represents 145 of Hollywood Casino Perryville's employees under an agreement that expires in February 2020. Additionally, Local No. 27 United Food and Commercial Workers and United Industrial Service Transportation Professional and Government Workers of North America represent certain employees under collective bargaining agreements that expire in 2020, neither of which represents more than 50 of Hollywood Casino Perryville's employees. If the Company fails to renew or modify existing agreements on satisfactory terms, this failure could have a material adverse effect on Hollywood Casino Perryville's business, financial condition and results of operations. There can be no assurance that Hollywood Casino Perryville will be able to maintain these agreements. |
Revenue Recognition |
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Revenue Recognition | Revenue Recognition As of December 31, 2018, 20 of the Company’s real estate investment properties were leased to a subsidiary of Penn under the Penn Master Lease, an additional 12 of the Company's real estate investment properties were leased to a subsidiary of Penn under the Amended Pinnacle Master Lease, 5 of the Company's real estate investment properties were leased to a subsidiary of Eldorado under the Eldorado Master Lease and 3 of the Company's real estate investment properties were leased to a subsidiary of Boyd under the Boyd Master Lease. Additionally, the Meadows real estate assets are leased to Penn under a single property triple-net lease and the Casino Queen real estate assets are leased back to the operator under an additional single property triple-net lease. The obligations under the Penn and Amended Pinnacle Master Leases are guaranteed by Penn and by most of Penn's subsidiaries that occupy and operate the facilities leased under these master leases. A default by Penn or its subsidiaries with regard to any facility under the Penn Master Lease will cause a default with regard to the Penn Master Lease and a default by Penn or its subsidiaries with regard to any facility under the Amended Pinnacle Master Lease will cause a default with regard to the Amended Pinnacle Master Lease. The obligations under the Eldorado Master Lease are guaranteed by Eldorado and by most of Eldorado's subsidiaries that occupy and operate the facilities leased under the Eldorado Master Lease. A default by Eldorado or its subsidiaries with regard to any facility under the Eldorado Master Lease will cause a default with regard to the Eldorado Master Lease. The obligations under the Boyd Master Leases are guaranteed by most of Boyd's subsidiaries that occupy and operate the facilities leased under the Boyd Master Lease. A default by Boyd or its subsidiaries with regard to any facility under the Boyd Master Lease will cause a default with regard to the Boyd Master Lease. The rent structure under the Penn Master Lease includes a fixed component, a portion of which is subject to an annual 2% escalator if certain rent coverage ratio thresholds are met, and a component that is based on the performance of the facilities, which is adjusted, subject to certain floors (i) every five years to an amount equal to 4% of the average net revenues of all facilities under the Penn Master Lease (other than Hollywood Casino Columbus and Hollywood Casino Toledo) during the preceding five years, and (ii) monthly by an amount equal to 20% of the net revenues of Hollywood Casino Columbus and Hollywood Casino Toledo during the preceding month. Similar to the Penn Master Lease, the Amended Pinnacle Master Lease also includes a fixed component, a portion of which is subject to an annual 2% escalator if certain rent coverage ratio thresholds are met and a component that is based on the performance of the facilities, which is adjusted, subject to certain floors every two years to an amount equal to 4% of the average annual net revenues of all facilities under the Amended Pinnacle Master Lease during the preceding two years. The Eldorado Master Lease includes a fixed component, a portion of which is subject to an annual 2% escalator if certain rent coverage ratio thresholds are met and a component that is based on the performance of the facilities, which is adjusted, subject to certain floors every two years to an amount equal to 4% of the average annual net revenues of all facilities under the Eldorado Master Lease during the preceding two years. The Boyd Master Lease includes a fixed component, a portion of which is subject to an annual 2% escalator if certain rent coverage ratio thresholds are met, and a component that is based on the performance of the facilities, which is adjusted, subject to certain floors every two years to an amount equal to 4% of the average annual net revenues of all facilities under the Boyd Master Lease during the preceding two years. The Meadows Lease contains a fixed component, subject to annual escalators, and a component that is based on the performance of the facility, which is reset every two years to a fixed amount determined by multiplying (i) 4% by (ii) the average annual net revenues of the facility for the trailing two-year period. The Meadows Lease contains an annual escalator provision for up to 5% of the base rent, if certain rent coverage ratio thresholds are met, which remains at 5% until the earlier of ten years or the year in which total rent is $31.0 million, at which point the escalator will be reduced to 2% annually thereafter. The rent structure under the Casino Queen Lease also includes a fixed component, a portion of which is subject to an annual 2% escalator if certain rent coverage ratio thresholds are met, and a component that is based on the performance of the facility, which is reset every five years to a fixed amount equal to the greater of (i) the annual amount of non-fixed rent applicable for the lease year immediately preceding such rent reset year and (ii) an amount equal to 4% of the average annual net revenues of the facility for the trailing five year period. In addition to rent, as triple-net lessees, all of the Company's tenants are required to pay the following executory costs: (1) all facility maintenance, (2) all insurance required in connection with the leased properties and the business conducted on the leased properties, including coverage of the landlord's interests, (3) taxes levied on or with respect to the leased properties (other than taxes on the income of the lessor) and (4) all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties. The Company determined, based on facts and circumstances prevailing at the time of each lease's inception, that neither Penn nor Casino Queen could continue as a going concern without the property(ies) that are leased to it under the respective master lease agreement (in the instance of Penn) and single property lease (in the instance of Casino Queen) with the Company. At lease inception, all of Casino Queen's revenues and substantially all of Penn's revenues were generated from operations in connection with the leased properties. There are also various legal restrictions in the jurisdictions in which Penn, and Casino Queen operate that limit the availability and location of gaming facilities, which makes relocation or replacement of the leased gaming facilities restrictive and potentially impracticable or unavailable. Moreover, under the terms of the master lease, Penn must make renewal elections with respect to all of the leased property together; the tenant is not entitled to selectively renew certain of the leased property while not renewing other property. Accordingly, the Company concluded that failure by Penn or Casino Queen to renew the lease would impose a significant penalty on such tenant such that renewal of all lease renewal options appears at lease inception to be reasonably assured. Therefore, the Company concluded that the term of Penn Master Lease and the Casino Queen Lease is 35 years, equal to the initial 15-year term plus all four of the 5-year renewal options. As discussed in Note 4, on October 15, 2018, in conjunction with the Penn-Pinnacle Merger, the Pinnacle Master Lease was amended via the fourth amendment to such lease to allow for the sale of the operating assets of Ameristar Casino Hotel Kansas City, Ameristar Casino Resort Spa St. Charles and Belterra Casino Resort from Pinnacle to Boyd. As a result of this amendment, the Company reassessed the lease's classification and determined the new lease agreement qualified for operating lease treatment under ASC 840. Therefore, subsequent to the Penn-Pinnacle Merger, the Amended Pinnacle Master Lease is treated as an operating lease in its entirety. Because the properties under the Amended Pinnacle Master Lease, do not represent a meaningful portion of Penn's business at the time Penn assumed the lease, the Company has concluded that lease term of the Amended Pinnacle Master Lease is 10 years, equal to the initial 10-year term only. Also as described in Note 4, subsequent to purchasing the majority of Pinnacle's real estate assets and leasing them back to Pinnacle, the Company entered into a separate triple-net lease with Pinnacle to lease the Meadows real estate assets to Pinnacle. Because this lease involved only a single property within Pinnacle's portfolio, GLPI concluded it was not reasonably assured at lease inception that Pinnacle would elect to exercise all lease renewal options. Therefore, the Company concluded that the lease term of the Meadows Lease is 10 years, equal to the initial 10-year term only. In conjunction with the Penn-Pinnacle Merger, Penn assumed the Meadows Lease. The accounting for the Meadows Lease, including the lease term was not impacted by the change in tenant. Based upon similar fact patterns, the Company concluded it was not reasonably assured at lease inception that Eldorado or Boyd would elect to exercise all lease renewal options under their respective master leases. The properties under both master leases do not represent a significant portion of either tenant's business at lease inception; therefore the Company has concluded that the lease term of the Eldorado Master Lease is 15 years and the lease term of the Boyd Master Lease is 10 years, equal to the initial terms of such master leases only. As of December 31, 2018, the future minimum rental income from the Company's properties under non-cancelable operating leases, including any reasonably assured rental periods, was as follows (in thousands):
The table above presents the cash rent the Company expects to receive from its tenants, offset by adjustments to recognize this rent on a straight-line basis over the lease term. The Company also includes the future non-cash revenue it expects to recognize from the fixed portion of tenant paid ground leases in the table above. For further details on these tenant paid ground leases, refer to Note 11. For the years ended December 31, 2018, 2017 and 2016, GLPI recognized $48.9 million, $46.8 million and $43.8 million, respectively, in contingent rental income from Hollywood Casino Columbus and Hollywood Casino Toledo related to clause (ii) in the paragraph above. The expected future minimum rental income from these properties, as well as any anticipated future rent based on the performance of the Company's leased facilities that resets after a certain passage of time are excluded from the table above as they are considered contingent rental income under ASC 840. Any anticipated future rent escalations are also excluded from the table above. The Company has financial interests in two casino properties through secured mortgage loans to the respective casino owner-operators. Interest income related to mortgage loans receivable is recorded as revenue from mortgaged real estate within the Company's consolidated statements of income in the period earned. During the year ended December 31, 2018, the Company recognized interest income from these loans of $6.9 million. Gaming revenue generated by the TRS Properties mainly consists of revenue from slot machines, and to a lesser extent, table game and poker revenue. Gaming revenue from slot machines is the aggregate net difference between gaming wins and losses with liabilities recognized for funds deposited by customers before gaming play occurs, for "ticket-in, ticket-out" coupons in the customers’ possession, and for accruals related to the anticipated payout of progressive jackpots. Progressive slot machines, which contain base jackpots that increase at a progressive rate based on the number of coins played, are charged to revenue as the amount of the jackpots increases. Table game gaming revenue is the aggregate of table drop adjusted for the change in aggregate table chip inventory. Table drop is the total dollar amount of the currency, coins, chips, tokens, outstanding counter checks (markers), and front money that are removed from the live gaming tables. Additionally, food and beverage revenue is recognized as services are performed. On January 1, 2018, the Company adopted ASU 2014-09, which altered the recognition of revenue at the TRS Properties related to the customer loyalty programs. Specifically, the recognition of revenue associated with these points-based programs was impacted by eliminating the current accrual for the cost of the points awarded at the time of play and instead deferring the portion of the revenue received from the customer at the time of play and attributed to the awarded points until a later period when such points are redeemed or forfeited. The revenue deferral is calculated by allocating a portion of the transaction price to the points based upon their retail value. Under the former guidance, the cost of the points was recorded as an operating expense through the gaming, food, beverage and other expense line item of the Company's consolidated statement of income. Under ASU 2014-09, promotional allowances representing the retail value of food, beverages and other services furnished to guests without charge are no longer presented as a separate line item on the consolidated statements of income, rather they are presented on a net basis within gaming, food, beverage and other revenue. This change has no impact to total revenues and is for presentation purposes only. The impact of adopting ASU 2014-09 was immaterial to the Company's total revenue for the year ended December 31, 2018. The following table discloses the components of gaming, food, beverage and other revenue within the consolidated statements of income for the years ended December 31, 2018, 2017 and 2016:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Company elected on its U.S. federal income tax return for its taxable year that began on January 1, 2014 to be treated as a REIT. The benefits of the intended REIT conversion on the Company's tax provision and effective income tax rate are reflected in the tables below. Deferred tax assets and liabilities are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated balance sheets. These temporary differences result in taxable or deductible amounts in future years. As a result of the Tax Cuts and Jobs Act, the corporate tax rate was permanently lowered from the previous maximum rate of 35% to 21%, effective for tax years including or commencing January 1, 2018. As a result of the reduction of the corporate tax rate, U.S. generally accepted accounting principles required companies to re-value their deferred tax assets and liabilities as of the date of the enactment, with resulting tax effects accounted for in the reported period of enactment. As such, the Company revalued its net deferred tax asset at December 31, 2017. This revaluation resulted in a reduction in the value of its net deferred tax asset of approximately $1.8 million, which was recorded as additional income tax expense in the Company’s consolidated statement of income for the year ended December 31, 2017. The components of the Company's deferred tax assets and liabilities, related to its TRS, are as follows:
The provision for income taxes charged to operations for years ended December 31, 2018, 2017 and 2016 was as follows:
The following tables reconcile the statutory federal income tax rate to the actual effective income tax rate for the years ended December 31, 2018, 2017 and 2016:
The Company is still subject to federal income tax examinations for its years ended December 31, 2015 and forward. |
Shareholders' Equity |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders' Equity Common Stock ATM Program During August 2016, the Company commenced a continuous equity offering under which the Company may sell up to an aggregate of $400 million of its common stock from time to time through a sales agent in "at the market" offerings (the "ATM Program"). Actual sales will depend on a variety of factors, including market conditions, the trading price of the Company's common stock and determinations of the appropriate sources of funding for proposed transactions. The Company may sell the shares in amounts and at times to be determined by the Company, but has no obligation to sell any of the shares in the ATM Program. The ATM Program also allows the Company to enter into forward sale agreements. In no event will the aggregate number of shares sold under the ATM Program (whether under any forward sale agreement or through a sales agent), have an aggregate sales price in excess of $400 million. The Company expects, that if it enters into a forward sale contract, to physically settle each forward sale agreement with the forward purchaser on one or more dates specified by the Company prior to the maturity date of that particular forward sale agreement, in which case the aggregate net cash proceeds at settlement will equal the number of shares underlying the particular forward sale agreement multiplied by the relevant forward sale price. However, the Company may also elect to cash settle or net share settle a particular forward sale agreement, in which case proceeds may or may not be received or cash may be owed to the forward purchaser. In connection with the ATM Program, the Company engaged a sales agent who may receive compensation of up to 2% of the gross sales price of the shares sold. Similarly, in the event the Company enters into a forward sale agreement, it will pay the relevant forward seller a commission of up to 2% of the sales price of all borrowed shares of common stock sold during the applicable selling period of the forward sale agreement. No shares were sold under the ATM Program during the year ended December 31, 2018. During the year ended December 31, 2017, GLPI sold 3,864,872 shares of its common stock at an average price of $36.22 per share under the ATM Program, which generated gross proceeds of approximately $140.0 million (net proceeds of approximately $139.4 million). Program to date, the Company has sold 5,186,871 shares of its common stock at an average price of $35.91 per share under the ATM Program and generated gross proceeds of approximately $186.3 million (net proceeds of approximately $185.0 million). The Company used the net proceeds from the ATM Program to partially fund its acquisition of the Meadows' and Tunica Properties' real estate assets. As of December 31, 2018, the Company had $213.7 million remaining for issuance under the ATM Program and had not entered into any forward sale agreements. Stock Issued in Connection with Pinnacle Transaction On April 6, 2016, the Company closed a public offering of 28,750,000 shares of its common stock, at a public offering price of $30.00 per share, before underwriting discount, which included 3,750,000 shares of common stock issued in connection with the exercise in full of the underwriters’ option to purchase additional shares. The Company received approximately $825.2 million in net proceeds from the offering and used the net proceeds from the offering to partially fund its acquisition of substantially all of the real estate assets of Pinnacle, including the repayment, redemption and/or discharge of a portion of certain debt of Pinnacle assumed by the Company in connection with the Pinnacle Merger and the payment of transaction-related fees and expenses. Additionally, on April 28, 2016, in connection with the Pinnacle Merger, the Company issued approximately 56.0 million shares of its common stock to Pinnacle stockholders and to Pinnacle to satisfy the Company's portion of Pinnacle's employee equity and cash-based incentive awards as consideration for the Pinnacle real estate assets. The following table lists the regular dividends declared and paid by the Company during the years ended December 31, 2018, 2017 and 2016:
In addition for the years ended December 31, 2018, 2017 and 2016, dividend payments were made to or accrued for GLPI restricted stock award holders and for both GLPI and Penn unvested employee stock options in the amount of $0.8 million, $0.9 million and $1.1 million, respectively. A summary of the Company's common stock distributions for the years ended December 31, 2018, 2017 and 2016 is as follows (unaudited):
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Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation As of December 31, 2018, the Company had 2,556,815 shares available for future issuance under the Amended and Restated 2013 Long Term Incentive Compensation Plan (the "2013 Plan") that was approved by shareholders on October 23, 2013. The 2013 Plan provides for the Company to issue restricted stock awards, including performance-based restricted stock awards and other equity or cash based awards to employees. Any director, employee or consultant shall be eligible to receive such awards. In connection with the Spin-Off, each outstanding option with respect to Penn common stock outstanding on the distribution date was converted into two awards, an adjusted Penn option and a GLPI option. The adjustment preserved the aggregate intrinsic value of the options. Additionally, in connection with the Spin-Off, holders of outstanding restricted stock and phantom stock units ("PSUs") with respect to Penn common stock became entitled to an additional share of restricted stock or PSU with respect to GLPI common stock for each share of Penn restricted stock or PSU held. The adjusted options, as well as the restricted stock awards and PSUs, otherwise remain subject to their original terms, except that for purposes of the adjusted Penn awards (including in determining exercisability and the post-termination exercise period), continued service with GLPI following the distribution date shall be deemed continued service with Penn; and for purposes of the GLPI awards (including in determining exercisability and the post-termination exercise period), continued service with Penn following the distribution date shall be deemed continued service with GLPI. The unrecognized compensation cost relating to restricted stock awards and performance-based restricted stock awards will be amortized to expense over the awards’ remaining vesting periods. As of December 31, 2018, all outstanding stock options were fully vested and there was no remaining unrecognized compensation cost related to stock options. For the years ended December 31, 2018 and 2017, the Company recognized no compensation expense associated with these awards and recognized $20 thousand of compensation expense associated with these awards for the year ended December 31, 2016. In addition, for the year ended December 31, 2016 the Company also recognized $4.5 million of compensation expense relating to the $2.32 per share dividends paid on vested employee stock options. The following tables contain information on stock options issued and outstanding for the year ended December 31, 2018 :
The Company had 26,799 stock options that were exercisable at December 31, 2018 with an exercise price of $22.09 which had an intrinsic value of $0.3 million and a weighted-average remaining contractual term of 0.01 years. The aggregate intrinsic value of stock options exercised for the years ended December 31, 2018, 2017 and 2016 was $15.1 million, $14.9 million and $75.0 million, respectively. The Company issues new authorized common shares to satisfy stock option exercises and restricted stock award releases. As of December 31, 2018, there was $5.4 million of total unrecognized compensation cost for restricted stock awards that will be recognized over the grants' remaining weighted average vesting period of 1.71 years. For the years ended December 31, 2018, 2017 and 2016, the Company recognized $4.7 million, $6.0 million and $7.3 million, respectively, of compensation expense associated with these awards. The total fair value of awards released for the years ended December 31, 2018, 2017 and 2016, was $10.0 million, $7.3 million and $5.3 million, respectively. The following table contains information on restricted stock award activity for the years ended December 31, 2018 and 2017:
Performance-based restricted stock awards have a three-year cliff vesting with the amount of restricted shares vesting at the end of the three-year period determined based upon the Company’s performance as measured against its peers. More specifically, the percentage of shares vesting at the end of the measurement period will be based on the Company’s three-year total shareholder return measured against the three-year return of the companies included in the MSCI US REIT index and the Company's stock performance ranking among a group of triple-net REIT peer companies. The triple-net measurement group includes publicly traded REITs deriving at least 75% of revenues from triple-net leases. As of December 31, 2018, there was $8.9 million of total unrecognized compensation cost, which will be recognized over the awards' remaining weighted average vesting period of 1.70 years. For the years ended December 31, 2018, 2017 and 2016, the Company recognized $6.4 million, $9.7 million and $11.0 million, respectively, of compensation expense associated with these awards. The following table contains information on performance-based restricted stock award activity for the years ended December 31, 2018 and 2017:
(1) The canceled shares and the resulting reversal of expense during the second quarter of 2018 are the result of the retirement of the Company's former Chief Financial Officer. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information 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.
(1) Amounts in the "Eliminations" column represent the elimination of intercompany interest payments from the Company’s TRS Properties business segment to its GLP Capital business segment. |
Summarized Quarterly Data (Unaudited) |
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Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Quarterly Data (Unaudited) | Summarized Quarterly Data (Unaudited) The following table summarizes the quarterly results of operations for the years ended December 31, 2018 and 2017:
(1) During October 2018, the Company acquired the real property assets of five casino properties from Tropicana and leased these assets to Eldorado under a new triple-net lease. Also during October 2018, in conjunction with the Penn- Pinnacle Merger, the Company acquired the real property assets of Plainridge Park and added this property to the Amended Pinnacle Master Lease. These transactions, in addition to the treatment of the Amended Pinnacle Master Lease as an operating lease in its entirety, as detailed in Note 4 were the primary drivers for the Company's improved operating results in the fourth quarter of 2018. (2) During the fourth quarter of 2018, the Company recorded an impairment charge of $59.5 million, related to the goodwill recorded on the books of its subsidiary, Hollywood Casino Baton Rouge. This was the largest driver of the decrease in the Company's net income during the fourth quarter of 2018. For further information on the impairment charge see Note 9. |
Supplemental Disclosures of Cash Flow Information and Noncash Activities |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosures of Cash Flow Information and Noncash Activities | Supplemental Disclosures of Cash Flow Information and Noncash Activities Supplemental disclosures of cash flow information are as follows:
Noncash investing and financing activities are as follows:
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Supplementary Condensed Consolidating Financial Information of Parent Guarantor and Subsidiary Issuers |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary Condensed Consolidating Financial Information of Parent Guarantor and Subsidiary Issuers | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary Consolidating Financial Information of Parent Guarantor and Subsidiary Issuers | Supplementary Consolidating Financial Information of Parent Guarantor and Subsidiary Issuers GLPI guarantees the Notes issued by its subsidiaries, GLP Capital, L.P. and GLP Financing II, Inc. Each of the subsidiary issuers is 100% owned by GLPI. The guarantees of GLPI are full and unconditional. GLPI is not subject to any material or significant restrictions on its ability to obtain funds from its subsidiaries by dividend or loan or to transfer assets from such subsidiaries, except as provided by applicable law. None of GLPI's subsidiaries guarantee the Notes. Summarized balance sheet information as of December 31, 2018 and 2017 and summarized income statement and cash flow information for the years ended December 31, 2018, 2017 and 2016 for GLPI as the parent guarantor, for GLP Capital, L.P. and GLP Financing II, Inc. as the subsidiary issuers and the other subsidiary non-issuers is presented below.
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Schedule III Real Estate Assets and Accumulated Depreciation |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure | SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION December 31, 2018 (in thousands)
(1)During April 2016, the Company acquired substantially all of the real estate assets of Pinnacle and subsequently leased the assets back to Pinnacle. As discussed further in the footnotes to the consolidated financial statements, the Pinnacle Master Lease was originally bifurcated between an operating lease and a direct financing lease, resulting in the land that was subject to operating lease treatment being recorded as a real estate asset on the Company's consolidated balance sheet, while the building assets that triggered direct financing lease treatment were recorded as an investment in direct financing lease on the Company's consolidated balance sheet. In conjunction with the Penn-Pinnacle Merger, on October 15, 2018, the Pinnacle Master Lease was amended via the fourth amendment to such lease to allow for the sale of the operating assets of Ameristar Casino Hotel Kansas City, Ameristar Casino Resort Spa St. Charles and Belterra Casino Resort from Pinnacle to Boyd. As a result of this amendment, the Company reassessed the lease's classification and determined the new lease agreement qualified for operating lease treatment under ASC 840. Therefore, subsequent to the Penn-Pinnacle Merger, the Amended Pinnacle Master Lease is treated as an operating lease in its entirety and the building assets previously recorded as an investment in direct financing lease on the Company's consolidated balance sheet were recorded as real estate assets on the Company's consolidated balance sheet. (2) Hollywood Casino at Dayton Raceway and Hollywood Casino at Mahoning Valley Race Course were jointly developed with Penn National Gaming, Inc. The costs capitalized subsequent to acquisition represent the capital expenditures incurred by the Company subsequent to the transfer of the development properties at Spin-Off. Both properties commenced operations and began paying rent during the year ended December 31, 2014. (3) The Company's corporate headquarters building was completed in October 2015. The land was purchased on September 19, 2014 and construction on the building occurred through October 2015. (4) This includes undeveloped land the Company owns at locations other than its tenant occupied properties. (5) The aggregate cost for federal income tax purposes of the properties listed above was $7.96 billion at December 31, 2018. This amount includes the tax basis of all real property assets acquired from Pinnacle, including building assets. A summary of activity for real estate and accumulated depreciation for the years ended December 31, 2018, 2017 and 2016 is as follows:
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Schedule IV Mortgage Loans on Real Estate |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEC Schedule IV, Mortgage Loans on Real Estate Disclosure | SCHEDULE IV MORTGAGE LOANS ON REAL ESTATE December 31, 2018 (in thousands)
(1) The Lumière Loan has a final maturity date of October 1, 2020, however, the loan may be extinguished prior to this date. (2) The Belterra Park Loan matures in connection with the expiration of the Boyd Master Lease (as may be extended at the tenant's option to April 30, 2051). (3) The aggregate cost for federal income tax purposes of the mortgage loans listed above was approximately $304 million at December 31, 2018.
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all cash balances and highly-liquid investments with original maturities of three months or less to be cash and cash equivalents. |
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Concentration of Credit Risk | Concentration of Credit Risk Concentrations of credit risk arise when a number of operators, tenants, or obligors related to the Company's investments are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to the Company, to be similarly affected by changes in economic conditions. Additionally, concentrations of credit risk may arise when revenues of the Company are derived from a small number of tenants. As of December 31, 2018, substantially all of the Company's real estate properties were leased to Penn, Eldorado and Boyd. During the year ended December 31, 2018, approximately 93% of the Company's collective income from real estate (excluding real estate taxes and ground leases paid by tenants) was derived from tenant leases with Penn and its acquiree Pinnacle, whereas approximately 3% and 2% of the Company's collective income from real estate (excluding real estate taxes and ground leases paid by tenants) was derived from tenant leases and mortgage loans with Eldorado and Boyd, respectively. Figures for Eldorado and Boyd represent partial years of revenue as both leases commenced in the fourth quarter of 2018. Revenues from our tenants are reported in the Company's GLP Capital, L.P. reportable segment. Penn, Eldorado and Boyd are publicly traded companies that are subject to the informational filing requirements of the Securities Exchange Act of 1934, as amended, and are required to file periodic reports on Form 10-K and Form 10-Q and current reports on Form 8-K with the Securities and Exchange Commission ("SEC"). Readers are directed to Penn, Eldorado and Boyd's respective websites for further financial information on these companies. Other than the Company's tenant concentration, management believes the Company's portfolio was reasonably diversified by geographical location and did not contain any other significant concentrations of credit risk. As of December 31, 2018, the Company's portfolio of 46 properties is diversified by location across 16 states. Financial instruments that subject the Company to credit risk consist of cash and cash equivalents, accounts receivable, mortgage loans receivable and loans receivable. The Company's policy is to limit the amount of credit exposure to any one financial institution and place investments with financial institutions evaluated as being creditworthy, or in short-term money market and tax-free bond funds which are exposed to minimal interest rate and credit risk. At times, the Company has bank deposits and overnight repurchase agreements that exceed federally-insured limits. |
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Prepaid Expenses and Other Assets | Prepaid Expenses and Other Assets Prepaid expenses consist of expenditures for goods (other than inventories) or services before the goods are used or the services are received. These amounts are deferred and charged to operations as the benefits are realized and primarily consist of prepayments for insurance and other contracts that will be expensed during the subsequent year. It also includes property taxes that were paid in advance, as well as transaction costs that will be allocated to purchase price upon the closing of an asset acquisition. Other assets consists primarily of accounts receivable, deposits, food and beverage inventory and deferred compensation plan assets (See Note 11 for further details on the deferred compensation plan). |
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Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are classified based upon the level of judgment associated with the inputs used to measure their fair value. ASC 820 - Fair Value Measurements and Disclosures ("ASC 820") establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). The levels of the hierarchy related to the subjectivity of the valuation inputs are described below:
The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate: Cash and Cash Equivalents The fair value of the Company’s cash and cash equivalents approximates the carrying value of the Company’s cash and cash equivalents, due to the short maturity of the cash equivalents. Deferred Compensation Plan Assets The Company's deferred compensation plan assets consist of open-ended mutual funds and as such the fair value measurement of the assets is considered a Level 1 measurement as defined under ASC 820. Deferred compensation plan assets are included within other assets on the consolidated balance sheets. Mortgage Loans Receivable The fair value of the mortgage loans receivable approximates the carrying value of the Company's mortgage loans receivable, as collection on the outstanding loan balances is reasonably assured. The fair value measurement of the loan receivable is considered a Level 3 measurement as defined under ASC 820. Long-term Debt The fair value of the senior unsecured notes and senior unsecured credit facility is estimated based on quoted prices in active markets and as such is a Level 1 measurement as defined under ASC 820. The estimated fair values of the Company’s financial instruments are as follows (in thousands):
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis in periods subsequent to initial recognition. Assets measured at fair value on a nonrecurring basis during the year ended December 31, 2018 are categorized in the table below based upon the lowest level of significant input to the valuation. There were no assets measured at fair value on a nonrecurring basis during the year ended December 31, 2017 or liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2018 and 2017.
Goodwill During the year ended December 31, 2018, the Company recorded goodwill impairment charges of $59.5 million on its Baton Rouge reporting unit, resulting from a significant reduction in the long-term earnings forecast of this property. The Company utilized the income approach to measure the fair value of goodwill, which involves a number of key assumptions, such as cash flow forecasts and discount rates. See Note 9 for additional information regarding the calculation of the impairment charge. Loan Receivable During the fourth quarter of 2018, the Company recorded an impairment charge of $1.5 million related to the paid-in-kind interest income on its loan receivable with Casino Queen. The Company determined, based upon facts and circumstances existing at December 31, 2018, that the paid-in-kind interest due to the Company at December 31, 2018 is not expected to be collected. Therefore, the Company did not recognize the paid-in-kind interest income due to the Company for the quarter ended December 31, 2018 and took a charge for the previously recognized paid-in-kind interest income through the Company’s consolidated statement of earnings as a reversal of the paid-in-kind interest income recognized earlier in the year. See Note 8 for further details surrounding the Casino Queen loan. |
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Real Estate Investments | Real Estate Investments Real estate investments primarily represent land and buildings leased to the Company's tenants. The Company records the acquisition of real estate assets at fair value, including acquisition and closing costs. The cost of properties developed by the Company include costs of construction, property taxes, interest and other miscellaneous costs incurred during the development period until the project is substantially complete and available for occupancy. The Company considers the period of future benefit of the asset to determine the appropriate useful lives. Depreciation is computed using a straight-line method over the estimated useful lives of the buildings and building improvements which are generally between 10 to 31 years. The Company continually monitors events and circumstances that could indicate that the carrying amount of its real estate investments may not be recoverable or realized. When indicators of potential impairment suggest that the carrying value of a real estate investment may not be recoverable, the Company estimates the fair value of the investment by calculating the undiscounted future cash flows from the use and eventual disposition of the investment. This amount is compared to the asset's carrying value. If the Company determines the carrying amount is not recoverable, it would recognize an impairment charge equivalent to the amount required to reduce the carrying value of the asset to its estimated fair value, calculated in accordance with GAAP. The Company groups its real estate investments together by lease, the lowest level for which identifiable cash flows are available, in evaluating impairment. In assessing the recoverability of the carrying value, the Company must make assumptions regarding future cash flows and other factors. The factors considered by the Company in performing this assessment include current operating results, market and other applicable trends and residual values, as well as the effect of obsolescence, demand, competition and other factors. If these estimates or the related assumptions change in the future, the Company may be required to record an impairment loss. |
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Land Rights | Land Rights Land rights represent the Company's rights to land subject to long-term ground leases. The Company records land rights at the acquisition date fair value of the long-term rights purchased from sellers. Essentially, land rights represent the below market value of the related ground leases. Land rights are amortized over the individual lease term of each ground lease, including all renewal options. Amortization expense related to the land rights is recorded within land rights and ground lease expense in the Company's consolidated statements of income. Land rights are monitored for potential impairment in much the same way as the Company's real estate assets. If the Company determines the carrying amount of a land right is not recoverable, it would recognize an impairment charge equivalent to the amount required to reduce the carrying value of the asset to its estimated fair value, calculated in accordance with GAAP. |
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Property and Equipment Used in Operations | Property and Equipment Used in Operations Property and equipment are stated at cost, less accumulated depreciation and represent assets used by the Company's TRS operations and certain corporate assets. Maintenance and repairs that neither add materially to the value of the asset nor appreciably prolong its useful life are charged to expense as incurred. Gains or losses on the disposal of property and equipment are included in the determination of income. Depreciation of property and equipment is recorded using the straight-line method over the following estimated useful lives:
Leasehold improvements are depreciated over the shorter of the estimated useful life of the improvement or the related lease term. The estimated useful lives are determined based on the nature of the assets as well as the Company's current operating strategy. The Company reviews the carrying value of its property and equipment for possible impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable based upon the estimated undiscounted future cash flows expected to result from its use and eventual disposition. If the Company determines the carrying amount is not recoverable, it would recognize an impairment charge equivalent to the amount required to reduce the carrying value of the asset to its estimated fair value, calculated in accordance with GAAP. In estimating expected future cash flows for determining whether an asset is impaired, assets are grouped at the individual property level. In assessing the recoverability of the carrying value of property and equipment, the Company must make assumptions regarding future cash flows and other factors. The factors considered by the Company in performing this assessment include current operating results, market and other applicable trends and residual values, as well as the effect of obsolescence, demand, competition and other factors. If these estimates or the related assumptions change in the future, the Company may be required to record an impairment loss for these assets. |
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Mortgage and Other Loans Receivable | Mortgage Loans Receivable The Company may periodically loan funds to casino owner-operators via secured mortgage loans for the purchase of gaming related properties. Mortgage loans are recorded on the Company's consolidated balance sheets at carrying value which approximates fair value. If the collectability of an outstanding mortgage balance is not reasonably assured, the Company will assess the loan's carrying value for potential impairment. If it is determined the loan is in fact impaired it will be written down or off completely. At December 31, 2018, the Company does not have any allowances recorded against its mortgage loans receivable as the collection of the remaining principal and interest payments is reasonable assured. Interest income related to mortgage loans receivable is recorded as revenue from mortgaged real estate within the Company's consolidated statements of income in the period earned. Loans Receivable The Company may periodically loan funds to tenants. Loans are made at prevailing market interest rates and recorded on the Company's consolidated balance sheets at carrying value which approximates fair value. If the collectability of an outstanding loan balance is not reasonably assured, the Company will assess the loan's carrying value for potential impairment. If it is determined the loan is in fact impaired it will be written down or off completely. |
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Investment in Direct Financing Leases | Investments in Direct Financing Leases As discussed in Note 8, prior to the Penn-Pinnacle Merger, the Pinnacle Master Lease was bifurcated between an operating lease and a direct financing lease, with the land assets qualifying for operating lease treatment and the building assets triggering direct financing lease treatment. This net investment in direct financing lease was unwound in conjunction with the Penn-Pinnacle Merger, via the fourth amendment to the Pinnacle Master. As a result of this amendment, the Company reassessed the lease's classification and determined the new lease agreement qualified for operating lease treatment under ASC 840 - Leases ("ASC 840"). Therefore, subsequent to the Penn-Pinnacle Merger, the Pinnacle Master Lease is treated as an operating lease in its entirety and the building assets previously recorded as an investment in direct financing lease on the Company's consolidated balance sheet were recorded as real estate assets on the Company's consolidated balance sheet. At December 31, 2017, the Company's investment in direct financing lease represented the building portion of the real estate assets acquired in the original Pinnacle transaction. |
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Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company's goodwill and intangible assets are the result of the contribution of Hollywood Casino Baton Rouge and Hollywood Casino Perryville in connection with the Spin-Off. The Company's goodwill resides on the books of its Hollywood Casino Baton Rouge subsidiary, while the other intangible asset represents a gaming license on the books of its Hollywood Casino Perryville subsidiary. Both subsidiaries are members of the TRS Properties segment and are considered separate reporting units under ASC 350 - Intangibles - Goodwill and Other ("ASC 350"). Goodwill is tested at the reporting unit level, which is an operating segment or one level below an operating segment for which discrete financial information is available Under ASC 350, the Company is required to test goodwill for impairment at least annually and whenever events or circumstances indicate that it is more likely than not that goodwill may be impaired. The Company has elected to perform its annual goodwill impairment test as of October 1 of each year. In accordance with ASC 350, the Company tests goodwill for impairment subsequent to testing its other long-lived assets for impairment. ASC 350 prescribes a two-step goodwill impairment test, the first step which involves the determination of the fair value of each reporting unit and its comparison to the carrying amount. In order to determine the fair value of the Baton Rouge reporting unit, the Company utilizes a discounted cash flow model, which relies on projected EBITDA to determine the reporting unit's future cash flows. If the carrying amount exceeds the fair value in step 1, then step 2 of the impairment test is performed to determine the implied fair value of goodwill. If the implied fair value of goodwill is less than the goodwill allocated to the reporting unit, an impairment loss is recognized. In accordance with ASC 350, the Company considers its Hollywood Casino Perryville gaming license an indefinite-lived intangible asset that does not require amortization based on the Company's future expectations to operate this casino indefinitely, as well as the gaming industry's historical experience in renewing these intangible assets at minimal cost with various state gaming commissions. Rather, the Company's gaming license is tested annually, or more frequently if indicators of impairment exist, for impairment by comparing the fair value of the recorded asset to its carrying amount. If the carrying amount of the indefinite-life intangible asset exceeds its fair value, an impairment loss is recognized. Hollywood Casino Perryville's gaming license will expire in September 2025, fifteen years from the casino's opening date. The Company expects to expense any costs related to the gaming license renewal as incurred. The Company calculates the fair value of its gaming license using the Greenfield Method under the income approach. The Greenfield Method estimates the fair value of the gaming license assuming the Company built a casino with similar utility to that of the existing facility. The method assumes a theoretical start-up company going into business without any assets other than the intangible asset being valued. As such the value of the license is a function of the following items:
The evaluation of goodwill and indefinite-lived intangible assets requires the use of estimates about future operating results to determine the estimated fair value of the reporting unit and the indefinite-lived intangible assets. The Company must make various assumptions and estimates in performing its impairment testing. The implied fair value includes estimates of future cash flows that are based on reasonable and supportable assumptions, which represent the Company's best estimates of the cash flows expected to result from the use of the assets. Changes in estimates, increases in the Company's cost of capital, reductions in transaction multiples, changes in operating and capital expenditure assumptions or application of alternative assumptions and definitions could produce significantly different results. Future cash flow estimates are, by their nature, subjective and actual results may differ materially from the Company's estimates. If the Company's ongoing estimates of future cash flows are not met, the Company may have to record additional impairment charges in future accounting periods. The Company's estimates of cash flows are based on the current regulatory and economic climates, as well as recent operating information and budgets. These estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, or other events. Forecasted cash flows can be significantly impacted by the local economy in which the Company's subsidiaries operate. For example, increases in unemployment rates can result in decreased customer visitations and/or lower customer spend per visit. In addition, new legislation which approves gaming in nearby jurisdictions or further expands gaming in jurisdictions in which the Company operates can result in increased competition for the property. This generally has a negative effect on profitability once competitors become established, as a certain level of cannibalization occurs absent an overall increase in customer visitations. Lastly, increases in gaming taxes approved by state regulatory bodies can negatively impact forecasted cash flows. Assumptions and estimates about future cash flow levels are complex and subjective. They are sensitive to changes in underlying assumptions and can be affected by a variety of factors, including external factors, such as industry, geopolitical and economic trends, and internal factors, such as changes in the Company's business strategy, which may reallocate capital and resources to different or new opportunities which management believes will enhance the Company's overall value but may be to the detriment of its existing operations. |
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Debt Issuance Costs | Debt Issuance Costs Debt issuance costs that are incurred by the Company in connection with the issuance of debt are deferred and amortized to interest expense over the contractual term of the underlying indebtedness. In accordance with ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, the Company records long-term debt net of unamortized debt issuance costs on its consolidated balance sheets. Similarly, the Company records long-term debt net of any unamortized bond premiums and original issuance discounts on its consolidated balance sheets. |
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Income Taxes | Income Taxes The TRS Properties are able to engage in activities resulting in income that would not be qualifying income for a REIT. As a result, certain activities of the Company which occur within its TRS Properties are subject to federal and state income taxes. The Company accounts for income taxes in accordance with ASC 740 - Income Taxes ("ASC 740"). Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and are measured at the prevailing enacted tax rates that will be in effect when these differences are settled or realized. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realizability of the deferred tax assets is evaluated by assessing the valuation allowance and by adjusting the amount of the allowance, if any, as necessary. The factors used to assess the likelihood of realization are the forecast of future taxable income. ASC 740 also creates a single model to address uncertainty in tax positions, and clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in an enterprise's financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company did not have any uncertain tax positions for the three years ended December 31, 2018. The Company is required under ASC 740 to disclose its accounting policy for classifying interest and penalties, the amount of interest and penalties charged to expense each period, as well as the cumulative amounts recorded in the consolidated balance sheets. If and when they occur, the Company will classify any income tax-related penalties and interest accrued related to unrecognized tax benefits in taxes on income within the consolidated statements of income. During the years ended December 31, 2018 and 2017, the Company recognized no penalties and interest, net of deferred income taxes and during the year ended December 31, 2016, the Company recognized $1 thousand of penalties and interest, net of deferred income taxes. The Company elected on its U.S. federal income tax return for its taxable year that began on January 1, 2014 to be treated as a REIT and the Company, together with an indirect wholly-owned subsidiary of the Company, GLP Holdings, Inc., jointly elected to treat each of GLP Holdings, Inc., Louisiana Casino Cruises, Inc. and Penn Cecil Maryland, Inc. as a "taxable REIT subsidiary" effective on the first day of the first taxable year of GLPI as a REIT. The Company continues to be organized and to operate in a manner that will permit the Company to qualify as a REIT. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to shareholders. As a REIT, the Company generally will not be subject to federal, state or local income tax on income that it distributes as dividends to its shareholders, except in those jurisdictions that do not allow a deduction for such distributions. If the Company fails to qualify as a REIT in any taxable year, it will be subject to U.S. federal, state and local income tax, including any applicable alternative minimum tax, on its taxable income at regular corporate income tax rates, and dividends paid to its shareholders would not be deductible by the Company in computing taxable income. Any resulting corporate liability could be substantial and could materially and adversely affect the Company's net income and net cash available for distribution to shareholders. Unless the Company was entitled to relief under certain Internal Revenue Code provisions, the Company also would be disqualified from re-electing to be taxed as a REIT for the 4 taxable years following the year in which it failed to qualify to be taxed as a REIT. |
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Revenue Recognition | Revenue Recognition The Company recognizes rental revenue from tenants, including rental abatements, lease incentives and contractually fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectability is reasonably assured. Additionally, percentage rent that is fixed and determinable at the lease inception date is recorded on a straight-line basis over the lease term, resulting in the recognition of deferred rental revenue on the Company’s consolidated balance sheets. Deferred rental revenue is amortized to rental revenue on a straight-line basis over the remainder of the lease term. The lease term includes the initial non-cancelable lease term and any reasonably assured renewable periods. Contingent rental income that is not fixed and determinable at lease inception is recognized only when the lessee achieves the specified target. Recognition of rental income commences when control of the facility has been transferred to the tenant. The Company recognizes income from tenants subject to direct financing leases ratably over the lease term using the effective interest rate method which produces a constant periodic rate of return on the net investment in the leased property. At lease inception, the Company records an asset which represents the Company's net investment in the direct financing lease. This initial net investment is determined by aggregating the total future minimum lease payments attributable to the direct financing lease and the estimated residual value of the property, less unearned income. Over the lease term, the investment in the direct financing lease is reduced and income is recognized for the building portion of rent. Furthermore, as the net investment in direct financing lease includes only future minimum lease payments, percentage rent that is not fixed and determinable at the lease inception is excluded from the determination of the rent attributable to the leased assets and will therefore be recorded as income from the direct financing lease in the period earned. In conjunction with the Penn-Pinnacle Merger on October 15, 2108, the Company's only direct financing lease was unwound and the master lease it was associated with qualified for operating lease treatment in its entirety. For further details refer to Note 8. Additionally, in accordance with ASC 606 - Revenue from Contracts with Customers ("ASC 606"), the Company records revenue for the real estate taxes paid by its tenants on the leased properties with an offsetting expense in real estate taxes within the consolidated statement of income as the Company has concluded it is the primary obligor. Similarly, the Company records revenue for the ground lease rent paid by its tenants with an offsetting expense in land rights and ground lease expense within the consolidated statements of income as the Company has concluded that as the lessee it is the primary obligor under the ground leases. The Company subleases these ground leases back to its tenants, who are responsible for payment directly to the landlord. The Company may periodically loan funds to casino owner-operators via secured mortgage loans for the purchase of gaming related properties. Interest income related to mortgage loans receivable is recorded as revenue from mortgaged real estate within the Company's consolidated statements of income in the period earned. Gaming revenue generated by the TRS Properties mainly consists of revenue from slot machines and to a lesser extent, table game and poker revenue. Gaming revenue from slot machines is the aggregate net difference between gaming wins and losses with liabilities recognized for funds deposited by customers before gaming play occurs, for "ticket-in, ticket-out" coupons in the customers’ possession, and for accruals related to the anticipated payout of progressive jackpots. Progressive slot machines, which contain base jackpots that increase at a progressive rate based on the number of coins played, are charged to revenue as the amount of the jackpots increase. Table game gaming revenue is the aggregate of table drop adjusted for the change in aggregate table chip inventory. Table drop is the total dollar amount of the currency, coins, chips, tokens, outstanding counter checks (markers), and front money that are removed from the live gaming tables. Additionally, food and beverage revenue is recognized as services are performed. Gaming revenue is recognized net of certain sales incentives, including promotional allowances in accordance with ASC 606. The Company also defers a portion of the revenue received from customers (who participate in the points based loyalty programs) at the time of play and attributed to the awarded points until a later period when the points are redeemed or forfeited. See Note 12 for a summary of the changes to the recognition of revenue at the TRS Properties related to the adoption of ASU 2014-09 on January 1, 2018. |
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Gaming Taxes | Gaming Taxes For the TRS Properties, the Company is subject to gaming taxes based on gross gaming revenues in the jurisdictions in which it operates. The Company recognizes gaming tax expense based on the statutorily required percentage of revenue that is required to be paid to state and local jurisdictions in the states where wagering occurs. The Company records gaming taxes at the Company’s estimated effective gaming tax rate for the year, considering estimated taxable gaming revenue and the applicable rates. Such estimates are adjusted each interim period. If gaming tax rates change during the year, such changes are applied prospectively in the determination of gaming tax expense in future interim periods. |
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Earnings Per Share | Earnings Per Share The Company calculates earnings per share ("EPS") in accordance with ASC 260 - Earnings Per Share. Basic EPS is computed by dividing net income applicable to common stock by the weighted-average number of common shares outstanding during the period, excluding net income attributable to participating securities (unvested restricted stock awards). Diluted EPS reflects the additional dilution for all potentially-dilutive securities such as stock options, unvested restricted shares and unvested performance-based restricted shares. |
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Stock-Based Compensation | Stock-Based Compensation The Company's Amended and Restated 2013 Long Term Incentive Compensation Plan (the "2013 Plan") provides for the Company to issue restricted stock awards, including performance-based restricted stock awards, and other equity or cash based awards to employees. Any director, employee or consultant shall be eligible to receive such awards. The Company accounts for stock compensation under ASC 718 - Compensation - Stock Compensation, which requires the Company to expense the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. This expense is recognized ratably over the requisite service period following the date of grant. The fair value of the Company's time-based restricted stock awards is equivalent to the closing stock price on the day of grant. The Company utilizes a third-party valuation firm to measure the fair value of performance-based restricted stock awards at grant date using the Monte Carlo model. The unrecognized compensation cost relating to restricted stock awards and performance-based restricted stock awards will be amortized to expense over the awards’ remaining vesting periods. |
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Segment Information | Segment Information Consistent with how the Company’s Chief Operating Decision Maker reviews and assesses the Company’s financial performance, the Company has two reportable segments, GLP Capital, L.P. (a wholly-owned subsidiary of GLPI through which GLPI owns substantially all of its real estate assets) ("GLP Capital") and the TRS Properties. The GLP Capital reportable segment consists of the leased real property and represents the majority of the Company’s business. The TRS Properties reportable segment consists of Hollywood Casino Perryville and Hollywood Casino Baton Rouge. |
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Statements of Cash Flows | Statements of Cash Flows The Company has presented the consolidated statements of cash flows using the indirect method, which involves the reconciliation of net income to net cash flow from operating activities. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated fair values of financial assets and liabilities | The estimated fair values of the Company’s financial instruments are as follows (in thousands):
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Schedule of assets measured at fair value on a nonrecurring basis | Assets measured at fair value on a nonrecurring basis during the year ended December 31, 2018 are categorized in the table below based upon the lowest level of significant input to the valuation. There were no assets measured at fair value on a nonrecurring basis during the year ended December 31, 2017 or liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2018 and 2017.
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Schedule of property, plant and equipment, useful lives | Depreciation of property and equipment is recorded using the straight-line method over the following estimated useful lives:
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Schedule of reconciliation of the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS | The following table reconciles the weighted-average common shares outstanding used in the calculation of basic EPS to the weighted-average common shares outstanding used in the calculation of diluted EPS for the years ended December 31, 2018, 2017 and 2016:
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Schedule of calculation of basic and diluted EPS for the Company's common stock | The following table presents the calculation of basic and diluted EPS for the Company’s common stock for the years ended December 31, 2018, 2017 and 2016:
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Acquisitions (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price allocation of the assets acquired in the Tropicana Acquisition (in thousands):
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Schedule of Consideration Transferred in Asset Acquisitions | The following tables summarize the consideration transferred in the Pinnacle Merger and the purchase price allocation to the assets acquired in the Pinnacle Merger (in thousands):
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Real Estate Investments (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Investments, Net | Real estate investments, net, represent investments in 42 rental properties and the corporate headquarters building and is summarized as follows:
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Land Rights (Tables) |
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Ground Leases, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Land Rights, Net | Land rights net, consists of the following:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2018, estimated future amortization expense related to the Company’s ground leases by fiscal year is as follows (in thousands):
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Property and Equipment Used in Operations (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment Used in Operations, Net | Property and equipment used in operations, net, consists of the following and primarily represents the assets utilized at the TRS Properties
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Receivables (Tables) |
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Financing Receivable, Net [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Components of Direct Financing Lease Investments | At December 31, 2017, the Company's investment in direct financing lease, net, consisted of the following and represented the building assets initially acquired from Pinnacle:
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Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 are as follows:
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Long-term Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt | Long-term debt, net of current maturities and unamortized debt issuance costs is as follows:
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Schedule of Future Minimum Repayments of Long-Term Debt | The following is a schedule of future minimum repayments of long-term debt as of December 31, 2018 (in thousands):
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Commitments and Contingencies (Tables) |
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Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease commitments, as of inception of the lease, relating to noncancelable operating leases at December 31, 2018 are as follows (in thousands):
(1) The above table excludes contingent rent in accordance with ASC 840. |
Revenue Recognition (Tables) |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum lease payments receivable from operating leases | As of December 31, 2018, the future minimum rental income from the Company's properties under non-cancelable operating leases, including any reasonably assured rental periods, was as follows (in thousands):
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Schedule of the components of gaming, food, beverage and other revenue | The following table discloses the components of gaming, food, beverage and other revenue within the consolidated statements of income for the years ended December 31, 2018, 2017 and 2016:
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | The components of the Company's deferred tax assets and liabilities, related to its TRS, are as follows:
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Schedule of Components of Income Tax Expense | The provision for income taxes charged to operations for years ended December 31, 2018, 2017 and 2016 was as follows:
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Schedules of Effective Income Tax Rate Reconciliations | The following tables reconcile the statutory federal income tax rate to the actual effective income tax rate for the years ended December 31, 2018, 2017 and 2016:
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Shareholders' Equity (Tables) |
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends Declared | The following table lists the regular dividends declared and paid by the Company during the years ended December 31, 2018, 2017 and 2016:
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Dividends Classification | A summary of the Company's common stock distributions for the years ended December 31, 2018, 2017 and 2016 is as follows (unaudited):
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Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options Activity | The following tables contain information on stock options issued and outstanding for the year ended December 31, 2018 :
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Schedule of Share-based Compensation, Restricted Stock Awards Activity | The following table contains information on restricted stock award activity for the years ended December 31, 2018 and 2017:
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Share-based Compensation, Performance-Based Restricted Stock Awards Activity | The following table contains information on performance-based restricted stock award activity for the years ended December 31, 2018 and 2017:
(1) The canceled shares and the resulting reversal of expense during the second quarter of 2018 are the result of the retirement of the Company's former Chief Financial Officer. |
Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | 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.
(1) Amounts in the "Eliminations" column represent the elimination of intercompany interest payments from the Company’s TRS Properties business segment to its GLP Capital business segment. |
Summarized Quarterly Data (Unaudited) (Tables) |
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Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | The following table summarizes the quarterly results of operations for the years ended December 31, 2018 and 2017:
(1) During October 2018, the Company acquired the real property assets of five casino properties from Tropicana and leased these assets to Eldorado under a new triple-net lease. Also during October 2018, in conjunction with the Penn- Pinnacle Merger, the Company acquired the real property assets of Plainridge Park and added this property to the Amended Pinnacle Master Lease. These transactions, in addition to the treatment of the Amended Pinnacle Master Lease as an operating lease in its entirety, as detailed in Note 4 were the primary drivers for the Company's improved operating results in the fourth quarter of 2018. (2) During the fourth quarter of 2018, the Company recorded an impairment charge of $59.5 million, related to the goodwill recorded on the books of its subsidiary, Hollywood Casino Baton Rouge. This was the largest driver of the decrease in the Company's net income during the fourth quarter of 2018. For further information on the impairment charge see Note 9. |
Supplemental Disclosures of Cash Flow Information and Noncash Activities (Tables) |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | Supplemental disclosures of cash flow information are as follows:
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Schedule of Noncash or Part Noncash Acquisitions | Noncash investing and financing activities are as follows:
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Supplementary Condensed Consolidating Financial Information of Parent Guarantor and Subsidiary Issuers (Tables) |
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Supplementary Condensed Consolidating Financial Information of Parent Guarantor and Subsidiary Issuers | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of financial information for GLPI as the parent guarantor, for GLP Capital, L.P. and GLP Financing II, Inc. as the subsidiary issuers and the other subsidiary non-issuers | Summarized balance sheet information as of December 31, 2018 and 2017 and summarized income statement and cash flow information for the years ended December 31, 2018, 2017 and 2016 for GLPI as the parent guarantor, for GLP Capital, L.P. and GLP Financing II, Inc. as the subsidiary issuers and the other subsidiary non-issuers is presented below.
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Summary of Significant Accounting Policies (Cash and Cash Equivalents) (Details) |
12 Months Ended |
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Dec. 31, 2018 | |
Maximum | |
Cash and Cash Equivalents [Line Items] | |
Investment maturity date for cash equivalent classification | 3 months |
Summary of Significant Accounting Policies (Concentration of Credit Risk) (Details) |
12 Months Ended |
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Dec. 31, 2018
state
property
| |
Concentration Risk [Line Items] | |
Number of facilities whose real estate property is included in entity portfolio | property | 46 |
Number of states across which the portfolio of properties is diversified | state | 16 |
Sales Revenue, Net | Penn National Gaming Inc | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 93.00% |
Sales Revenue, Net | Eldorado Resorts, Inc. | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 3.00% |
Sales Revenue, Net | Boyd Gaming Corporation | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 2.00% |
Summary of Significant Accounting Policies (Fair Value of Financial Assets and LIabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | $ 25,783 | $ 29,054 |
Deferred compensation plan assets | 22,709 | 22,617 |
Mortgage loans receivable | 303,684 | 0 |
Financial liabilities: | ||
Senior unsecured credit facility | 927,000 | 1,055,000 |
Senior unsecured notes | 4,975,000 | 3,425,000 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 25,783 | 29,054 |
Deferred compensation plan assets | 22,709 | 22,617 |
Mortgage loans receivable | 303,684 | 0 |
Financial liabilities: | ||
Senior unsecured credit facility | 909,308 | 1,045,600 |
Senior unsecured notes | $ 4,958,455 | $ 3,574,688 |
Summary of Significant Accounting Policies (Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Assets: | ||||
Loan receivable, impairment | $ 1,500 | $ 1,500 | ||
Goodwill impairment charges | 59,454 | $ 0 | $ 0 | |
Total impairment charges | 60,954 | |||
Level 1 | ||||
Assets: | ||||
Goodwill | 0 | 0 | ||
Loan receivable | 0 | 0 | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Goodwill | 0 | 0 | ||
Loan receivable | 0 | 0 | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | ||
Level 3 | ||||
Assets: | ||||
Goodwill | 16,067 | 16,067 | ||
Loan receivable | 13,000 | 13,000 | ||
Total assets measured at fair value on a nonrecurring basis | $ 29,067 | $ 29,067 |
Summary of Significant Accounting Policies (Real Estate Investments) (Details) - Building and improvements |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Life used for depreciation of real estate assets, buildings and improvements | 10 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Life used for depreciation of real estate assets, buildings and improvements | 31 years |
Summary of Significant Accounting Policies (Property and Equipment Used in Operations) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Land improvements | |
Property, Plant and Equipment [Line Items] | |
Useful life used for property, plant, and equipment | 15 years |
Building and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life used for property, plant, and equipment | 5 years |
Building and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life used for property, plant, and equipment | 31 years |
Furniture, fixtures, and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life used for property, plant, and equipment | 3 years |
Furniture, fixtures, and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life used for property, plant, and equipment | 31 years |
Summary of Significant Accounting Policies (Income Taxes) (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Income tax penalties and interest, net of deferred income taxes | $ 0 | $ 0 | $ 1,000 |
REIT taxable income distribution requirement | 90.00% | ||
Period for which entity will not be permitted to qualify for tax treatment as real estate investment trust in case of failure to qualify as REIT in any taxable year | 4 years |
Summary of Significant Accounting Policies (Gaming Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Gaming Taxes | |||
Gaming Taxes | $ 56.0 | $ 57.4 | $ 57.7 |
Summary of Significant Accounting Policies (Earnings Per Share) (Weighted Average Common Shares Outstanding) (Details) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Schedule of Basic And Diluted Weighted Average Common Shares Outstanding [Line Items] | |||
Basic weighted-average common shares outstanding (in shares) | 213,720 | 210,705 | 178,594 |
Diluted weighted-average common shares outstanding (in shares) | 214,779 | 212,752 | 180,622 |
Employee stock options | |||
Schedule of Basic And Diluted Weighted Average Common Shares Outstanding [Line Items] | |||
Assumed conversion (in shares) | 206 | 644 | 1,699 |
Restricted stock awards | |||
Schedule of Basic And Diluted Weighted Average Common Shares Outstanding [Line Items] | |||
Assumed conversion (in shares) | 80 | 155 | 171 |
Performance-based restricted stock awards | |||
Schedule of Basic And Diluted Weighted Average Common Shares Outstanding [Line Items] | |||
Assumed conversion (in shares) | 773 | 1,248 | 158 |
Summary of Significant Accounting Policies (Earnings Per Share) (EPS Calculations) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Calculation of basic EPS: | |||||||||||
Net income | $ 45,931 | $ 104,815 | $ 91,998 | $ 96,772 | $ 93,259 | $ 97,014 | $ 96,334 | $ 93,991 | $ 339,516 | $ 380,598 | $ 289,305 |
Less: Net income allocated to participating securities | (475) | (622) | (668) | ||||||||
Net income attributable to common shareholders | $ 339,041 | $ 379,976 | $ 288,637 | ||||||||
Basic weighted-average common shares outstanding (in shares) | 213,720,000 | 210,705,000 | 178,594,000 | ||||||||
Basic earnings per common share (in dollars per share) | $ 0.21 | $ 0.49 | $ 0.43 | $ 0.45 | $ 0.44 | $ 0.46 | $ 0.46 | $ 0.45 | $ 1.59 | $ 1.80 | $ 1.62 |
Calculation of diluted EPS: | |||||||||||
Net income | $ 45,931 | $ 104,815 | $ 91,998 | $ 96,772 | $ 93,259 | $ 97,014 | $ 96,334 | $ 93,991 | $ 339,516 | $ 380,598 | $ 289,305 |
Diluted weighted-average common shares outstanding (in shares) | 214,779,000 | 212,752,000 | 180,622,000 | ||||||||
Diluted earnings per common share (in dollars per share) | $ 0.21 | $ 0.49 | $ 0.43 | $ 0.45 | $ 0.43 | $ 0.45 | $ 0.45 | $ 0.45 | $ 1.58 | $ 1.79 | $ 1.60 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 13,335 | 3,483 | 23,954 |
Summary of Significant Accounting Policies (Segment Information) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018
segment
| |
Segment Information | |
Number of reportable segments | 2 |
Acquisitions (Consideration Transferred) (Details) - Pinnacle Entertainment, Inc. - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Apr. 28, 2016 |
Apr. 30, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Consideration | ||||
Cash | $ 2,955,090 | |||
GLPI common stock | 1,823,991 | $ 0 | $ 0 | |
Fair value of total consideration transferred | $ 4,779,081 | $ 4,800,000 |
Acquisitions (Purchase Price Allocation Components) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2016 |
---|---|---|
Tropicana Entertainment | ||
Consideration | ||
Real estate investments, net | $ 948,217 | |
Land rights, net | 44,331 | |
Total purchase price | $ 992,548 | |
Pinnacle Entertainment, Inc. | ||
Consideration | ||
Real estate investments, net | $ 1,422,547 | |
Land rights, net | 596,920 | |
Investment in direct financing lease, net | 2,759,244 | |
Prepaid expenses | 111 | |
Other assets | 259 | |
Total purchase price | $ 4,779,081 |
Acquisitions (Purchase Price Allocation) (Narrative) (Details) - Pinnacle Entertainment, Inc. - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 28, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Consideration | |||
Asset acquisition, consideration transferred, cash | $ 2,955,090 | ||
Equity raised to partially finance the original Pinnacle transaction | $ 1,823,991 | $ 0 | $ 0 |
Real Estate Investments (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
property
|
Dec. 31, 2017
USD ($)
|
---|---|---|
Real estate investments | ||
Number of real estate properties | property | 42 | |
Total real estate investments | $ 8,314,546 | $ 4,519,501 |
Less accumulated depreciation | (983,086) | (857,456) |
Real estate investments, net | 7,331,460 | 3,662,045 |
Land and improvements | ||
Real estate investments | ||
Total real estate investments | 2,552,475 | 2,057,928 |
Building and improvements | ||
Real estate investments | ||
Total real estate investments | $ 5,762,071 | $ 2,461,573 |
Property and Equipment Used in Operations (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Property and equipment used in operations | ||
Total property and equipment | $ 264,738 | $ 261,542 |
Less accumulated depreciation | (163,854) | (153,249) |
Property and equipment, net | 100,884 | 108,293 |
Land and improvements | ||
Property and equipment used in operations | ||
Total property and equipment | 30,431 | 30,276 |
Building and improvements | ||
Property and equipment used in operations | ||
Total property and equipment | 116,776 | 116,286 |
Furniture, fixtures, and equipment | ||
Property and equipment used in operations | ||
Total property and equipment | 117,247 | 114,972 |
Construction in progress | ||
Property and equipment used in operations | ||
Total property and equipment | $ 284 | $ 8 |
Receivables (Investment in Direct Financing Lease, Net (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Loans and Leases Receivable Disclosure [Line Items] | ||
Minimum lease payments receivable | $ 3,263,387 | |
Unguaranteed residual value | 689,811 | |
Gross investment in direct financing lease | 3,953,198 | |
Less: unearned income | (1,315,559) | |
Investment in direct financing lease, net | $ 0 | $ 2,637,639 |
Pinnacle Entertainment, Inc. Master Lease | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Lessor leasing arrangements, term of contract including all reasonably assured renewal periods | 35 years |
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Goodwill [Roll Forward] | ||||
Beginning Balance, Goodwill | $ 75,521 | |||
Impairment losses | 59,454 | $ 0 | $ 0 | |
Ending Balance, Goodwill | $ 16,067 | 16,067 | 75,521 | |
Other intangible assets | 9,577 | 9,577 | 9,577 | |
Hollywood Casino Baton Rouge, LA | ||||
Goodwill [Roll Forward] | ||||
Impairment losses | 59,500 | 59,500 | ||
Ending Balance, Goodwill | 16,100 | 16,100 | ||
Hollywood Casino Perryville, MD | ||||
Goodwill [Roll Forward] | ||||
Other intangible assets | 9,600 | 9,600 | ||
TRS Properties | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance, Goodwill | 75,521 | 75,521 | ||
Acquisitions | 0 | 0 | ||
Impairment losses | (59,454) | 0 | ||
Ending Balance, Goodwill | $ 16,067 | $ 16,067 | $ 75,521 | $ 75,521 |
Long-term Debt (Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Future minimum repayments of long-term debt | ||
2019 | $ 123 | |
2020 | 1,000,129 | |
2021 | 925,135 | |
2022 | 142 | |
2023 | 902,149 | |
Over 5 years | 3,075,434 | |
Total minimum payments | $ 5,903,112 | $ 4,481,230 |
Long-term Debt (Capital Lease) (Narrative) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018 | |
Capital lease | |
Long-term debt | |
Debt instrument term | 30 years |
Commitments and Contingencies (Future Minimum Lease Payments) (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 15,519 |
2020 | 15,159 |
2021 | 15,042 |
2022 | 15,026 |
2023 | 15,005 |
Thereafter | 541,135 |
Total | $ 616,886 |
Commitments and Contingencies (Employee Benefit Plans) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution, percent of match | 50.00% | ||
Defined contribution plan, employer discretionary contribution amount | $ 0.3 | $ 0.3 | $ 0.3 |
Deferred compensation arrangement employer contribution vesting period | 5 years | ||
Deferred compensation arrangement with individual, employer contribution | $ 0.7 | 0.6 | $ 0.7 |
Deferred compensation plan liabilities | 22.8 | 22.7 | |
Deferred compensation plan assets | $ 22.7 | $ 22.6 | |
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 6.00% |
Commitments and Contingencies (Labor Agreements) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018
employee
| |
Labor Agreements [Line Items] | |
Agreements with SEATU Union number of employees | 145 |
Maximum | Number of Employees, Total | Unionized Employees Concentration Risk | |
Labor Agreements [Line Items] | |
Threshold number of employees under agreement for separate disclosure of unions (more than) | 50 |
Revenue Recognition (Future Minimum Lease Payments Receivable - Operating Leases (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Future Rental Payments Receivable | |
2019 | $ 959,797 |
2020 | 920,129 |
2021 | 854,210 |
2022 | 854,210 |
2023 | 854,210 |
Thereafter | 11,146,434 |
Total | 15,588,990 |
Straight-Line Rent Adjustments | |
2019 | (34,574) |
2020 | (2,567) |
2021 | 21,786 |
2022 | 21,786 |
2023 | 21,786 |
Thereafter | 265,694 |
Total | 293,911 |
Future Base Ground Rents Receivable | |
2019 | 13,403 |
2020 | 13,408 |
2021 | 13,414 |
2022 | 13,420 |
2023 | 13,425 |
Thereafter | 471,598 |
Total | 538,668 |
Future Income to be Recognized Related to Operating Leases | |
2019 | 938,626 |
2020 | 930,970 |
2021 | 889,410 |
2022 | 889,416 |
2023 | 889,421 |
Thereafter | 11,883,726 |
Total | $ 16,421,569 |
Revenue Recognition (Components of Gaming Revenue) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 303,317 | $ 254,139 | $ 254,221 | $ 244,050 | $ 240,697 | $ 244,506 | $ 243,391 | $ 242,713 | $ 1,055,727 | $ 971,307 | $ 828,255 |
Slot machines | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 111,315 | 118,998 | 119,390 | ||||||||
Table games | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 15,528 | 17,218 | 18,069 | ||||||||
Poker | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,114 | 1,182 | 1,135 | ||||||||
Food, beverage and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 8,762 | 9,468 | 11,067 | ||||||||
Promotional allowances | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | (4,174) | (4,780) | (5,610) | ||||||||
Gaming, food, beverage and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 132,545 | $ 142,086 | $ 144,051 |
Income Taxes (Narrative) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Income Tax Disclosure [Abstract] | |
Reduction in deferred tax assets | $ 1.8 |
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Deferred tax assets: | ||
Accrued expenses | $ 1,416 | $ 1,597 |
Property and equipment | 5,405 | 4,823 |
Interest expense | 313 | 0 |
Net deferred tax assets | 7,134 | 6,420 |
Deferred tax liabilities: | ||
Property and equipment | (757) | (902) |
Intangibles | (1,460) | (1,284) |
Net deferred tax liabilities | (2,217) | (2,186) |
Net: | $ 4,917 | $ 4,234 |
Income Taxes (Provision for Income Taxes - Current and Deferred) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Current tax expense | |||
Federal | $ 2,856 | $ 7,039 | $ 6,004 |
State | 2,630 | 3,309 | 3,076 |
Total current | 5,486 | 10,348 | 9,080 |
Deferred tax (benefit) expense | |||
Federal | (512) | (166) | (1,324) |
State | (10) | (395) | (211) |
Total deferred | (522) | (561) | (1,535) |
Total provision | $ 4,964 | $ 9,787 | $ 7,545 |
Income Taxes (Effective Income Tax Rate Reconciliation, Percent) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 35.00% | 35.00% |
State and local income taxes | 0.60% | 0.60% | 0.70% |
Federal tax rate change | 0.00% | 0.50% | 0.00% |
REIT conversion benefit | (23.80%) | (33.60%) | (33.20%) |
Goodwill impairment charges | 3.60% | 0.00% | 0.00% |
Effective income tax rate reconciliation, effective income tax rate, percent | 1.40% | 2.50% | 2.50% |
Income Taxes (Effective Income Tax Rate Reconciliation, Amount) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. federal statutory income tax | $ 72,341 | $ 136,636 | $ 103,897 |
State and local income taxes | 2,246 | 2,284 | 2,039 |
Federal tax rate change | 0 | 1,818 | 0 |
REIT conversion benefit | (82,151) | (130,876) | (98,459) |
Goodwill impairment charges | 12,485 | 0 | 0 |
Permanent differences | 19 | 49 | 44 |
Other miscellaneous items | 24 | (124) | 24 |
Total provision | $ 4,964 | $ 9,787 | $ 7,545 |
Shareholders' Equity (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 28, 2018 |
Oct. 12, 2018 |
Sep. 21, 2018 |
Jul. 31, 2018 |
Jun. 29, 2018 |
Apr. 24, 2018 |
Mar. 23, 2018 |
Feb. 01, 2018 |
Dec. 15, 2017 |
Oct. 19, 2017 |
Sep. 22, 2017 |
Jul. 25, 2017 |
Jun. 30, 2017 |
Apr. 25, 2017 |
Mar. 24, 2017 |
Feb. 01, 2017 |
Dec. 16, 2016 |
Nov. 04, 2016 |
Sep. 23, 2016 |
Aug. 03, 2016 |
Jun. 17, 2016 |
Apr. 25, 2016 |
Mar. 25, 2016 |
Jan. 29, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Dividends [Abstract] | |||||||||||||||||||||||||||
Common stock, dividends declared (in dollars per share) | $ 0.68 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.62 | $ 0.62 | $ 0.60 | $ 0.60 | $ 0.56 | $ 0.56 | |||||||||||||||
Common stock, dividends paid (in dollars per share) | $ 0.68 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.63 | $ 0.62 | $ 0.62 | $ 0.60 | $ 0.60 | $ 0.56 | $ 0.56 | $ 2.57 | $ 2.50 | $ 2.32 | ||||||||||||
Dividend Amount | $ 145,627 | $ 134,844 | $ 134,631 | $ 134,490 | $ 133,942 | $ 133,936 | $ 131,554 | $ 129,007 | $ 124,466 | $ 124,262 | $ 113,212 | $ 65,345 |
Shareholders' Equity (Dividends) (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Dividends [Abstract] | |||
Dividends, share-based compensation | $ 0.8 | $ 0.9 | $ 1.1 |
Stock-Based Compensation (Stock Options Issued and Outstanding) (Details) - Employee stock options $ / shares in Units, $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
$ / shares
shares
| |
Number of Option Shares | |
Outstanding at beginning of period (in shares) | shares | 1,040,745 |
Exercised (in shares) | shares | (1,012,508) |
Canceled (in shares) | shares | (1,438) |
Outstanding at end of period (in shares) | shares | 26,799 |
Weighted- Average Exercise Price | |
Outstanding at period start (in dollars per share) | $ / shares | $ 19.80 |
Exercised (in dollars per share) | $ / shares | 19.74 |
Canceled (in dollars per share) | $ / shares | 17.33 |
Outstanding at period end (in dollars per share) | $ / shares | $ 22.09 |
Weighted- Average Remaining Contractual Term (in years) | 3 days |
Aggregate Intrinsic Value | $ | $ 272 |
Stock-Based Compensation (Restricted Stock Award Activity) (Details) - Restricted stock awards - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Number of Award Shares | ||
Outstanding at the beginning of the period (in shares) | 344,744 | 413,242 |
Granted (in shares) | 283,183 | 184,791 |
Released (in shares) | (273,286) | (251,313) |
Canceled (in shares) | (54,999) | (1,976) |
Outstanding at the end of the period (in shares) | 299,642 | 344,744 |
Weighted Average Grant-Date Fair Value | ||
Outstanding at the beginning of the period (in dollars per share) | $ 29.69 | $ 30.59 |
Granted (in dollars per share) | 23.34 | 30.89 |
Released (in dollars per share) | 18.16 | 32.05 |
Canceled (in dollars per share) | 33.34 | 30.37 |
Outstanding at the end of the period (in dollars per share) | $ 33.53 | $ 29.69 |
Stock-Based Compensation (Performance-Based Restricted Stock Awards Activity) (Details) - Performance-based restricted stock awards - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Number of Performance-Based Award Shares | ||
Outstanding at the beginning of the period (in shares) | 1,664,000 | 1,106,000 |
Granted (in shares) | 556,000 | 558,000 |
Released (in shares) | (548,000) | 0 |
Canceled (in shares) | (330,000) | 0 |
Outstanding at the end of the period (in shares) | 1,342,000 | 1,664,000 |
Weighted Average Grant-Date Fair Value | ||
Outstanding at the beginning of the period (in dollars per share) | $ 17.49 | $ 17.25 |
Granted (in dollars per share) | 20.64 | 17.95 |
Released (in dollars per share) | 17.29 | 0.00 |
Canceled (in dollars per share) | 18.60 | 0.00 |
Outstanding at the end of the period (in dollars per share) | $ 18.60 | $ 17.49 |
Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Segment information | |||||||||||
Total revenues | $ 303,317 | $ 254,139 | $ 254,221 | $ 244,050 | $ 240,697 | $ 244,506 | $ 243,391 | $ 242,713 | $ 1,055,727 | $ 971,307 | $ 828,255 |
Income (loss) from operations | 123,884 | 164,834 | 153,241 | 151,851 | 150,117 | 152,699 | 152,696 | 150,006 | 593,810 | 605,518 | 480,623 |
Interest expense | 247,684 | 217,068 | 185,896 | ||||||||
Income (loss) before income taxes | 344,480 | 390,385 | 296,850 | ||||||||
Income tax expense | 4,964 | 9,787 | 7,545 | ||||||||
Net income | 45,931 | $ 104,815 | $ 91,998 | $ 96,772 | 93,259 | $ 97,014 | $ 96,334 | $ 93,991 | 339,516 | 380,598 | 289,305 |
Depreciation | 137,093 | 113,480 | 109,554 | ||||||||
Capital project expenditures | 20 | 78 | 330 | ||||||||
Capital maintenance expenditures | 4,284 | 3,178 | 3,111 | ||||||||
Total assets | 8,577,293 | 7,246,882 | 8,577,293 | 7,246,882 | |||||||
Eliminations | |||||||||||
Segment information | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Income (loss) from operations | 0 | 0 | 0 | ||||||||
Interest expense | (10,406) | (10,406) | (10,406) | ||||||||
Income (loss) before income taxes | 0 | 0 | 0 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Net income | 0 | 0 | 0 | ||||||||
Depreciation | 0 | 0 | 0 | ||||||||
Capital project expenditures | 0 | 0 | 0 | ||||||||
Capital maintenance expenditures | 0 | 0 | 0 | ||||||||
Total assets | 0 | 0 | 0 | 0 | |||||||
GLP Capital | |||||||||||
Segment information | |||||||||||
Total revenues | 923,182 | 829,221 | 684,204 | ||||||||
Income (loss) from operations | 630,122 | 578,661 | 454,682 | ||||||||
Interest expense | 247,684 | 217,068 | 185,896 | ||||||||
Income (loss) before income taxes | 391,196 | 373,931 | 281,311 | ||||||||
Income tax expense | 855 | 1,099 | 1,016 | ||||||||
Net income | 390,341 | 372,832 | 280,295 | ||||||||
Depreciation | 127,696 | 102,652 | 98,171 | ||||||||
Capital project expenditures | 20 | 78 | 229 | ||||||||
Capital maintenance expenditures | 55 | 0 | 0 | ||||||||
Total assets | 8,441,345 | 7,045,747 | 8,441,345 | 7,045,747 | |||||||
TRS Properties | |||||||||||
Segment information | |||||||||||
Total revenues | 132,545 | 142,086 | 144,051 | ||||||||
Income (loss) from operations | (36,312) | 26,857 | 25,941 | ||||||||
Interest expense | 10,406 | 10,406 | 10,406 | ||||||||
Income (loss) before income taxes | (46,716) | 16,454 | 15,539 | ||||||||
Income tax expense | 4,109 | 8,688 | 6,529 | ||||||||
Net income | (50,825) | 7,766 | 9,010 | ||||||||
Depreciation | 9,397 | 10,828 | 11,383 | ||||||||
Capital project expenditures | 0 | 0 | 101 | ||||||||
Capital maintenance expenditures | 4,229 | 3,178 | $ 3,111 | ||||||||
Total assets | $ 135,948 | $ 201,135 | $ 135,948 | $ 201,135 |
Summarized Quarterly Data (Unaudited) (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018
USD ($)
property
$ / shares
|
Sep. 30, 2018
USD ($)
$ / shares
|
Jun. 30, 2018
USD ($)
$ / shares
|
Mar. 31, 2018
USD ($)
$ / shares
|
Dec. 31, 2017
USD ($)
$ / shares
|
Sep. 30, 2017
USD ($)
$ / shares
|
Jun. 30, 2017
USD ($)
$ / shares
|
Mar. 31, 2017
USD ($)
$ / shares
|
Dec. 31, 2018
USD ($)
property
$ / shares
|
Dec. 31, 2017
USD ($)
$ / shares
|
Dec. 31, 2016
USD ($)
$ / shares
|
Oct. 31, 2018
property
|
|
Selected Quarterly Financial Information [Abstract] | ||||||||||||
Total revenues | $ 303,317 | $ 254,139 | $ 254,221 | $ 244,050 | $ 240,697 | $ 244,506 | $ 243,391 | $ 242,713 | $ 1,055,727 | $ 971,307 | $ 828,255 | |
Income from operations | 123,884 | 164,834 | 153,241 | 151,851 | 150,117 | 152,699 | 152,696 | 150,006 | 593,810 | 605,518 | 480,623 | |
Net income | $ 45,931 | $ 104,815 | $ 91,998 | $ 96,772 | $ 93,259 | $ 97,014 | $ 96,334 | $ 93,991 | $ 339,516 | $ 380,598 | $ 289,305 | |
Earnings per common share: | ||||||||||||
Basic earnings per common share (in dollars per share) | $ / shares | $ 0.21 | $ 0.49 | $ 0.43 | $ 0.45 | $ 0.44 | $ 0.46 | $ 0.46 | $ 0.45 | $ 1.59 | $ 1.80 | $ 1.62 | |
Diluted earnings per common share (in dollars per share) | $ / shares | $ 0.21 | $ 0.49 | $ 0.43 | $ 0.45 | $ 0.43 | $ 0.45 | $ 0.45 | $ 0.45 | $ 1.58 | $ 1.79 | $ 1.60 | |
Consideration | ||||||||||||
Number of real estate properties | property | 42 | 42 | ||||||||||
Goodwill impairment charges | $ 59,454 | $ 0 | $ 0 | |||||||||
Tropicana Entertainment | ||||||||||||
Consideration | ||||||||||||
Number of real estate properties | property | 5 | 5 | 5 | |||||||||
Hollywood Casino Baton Rouge, LA | ||||||||||||
Consideration | ||||||||||||
Goodwill impairment charges | $ 59,500 | $ 59,500 |
Supplemental Disclosures of Cash Flow Information and Noncash Activities (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Supplemental Cash Flow Elements [Abstract] | |||
Cash paid for income taxes, net of refunds received | $ 5,389 | $ 11,646 | $ 7,362 |
Cash paid for interest | $ 229,779 | $ 204,442 | $ 154,527 |
Supplemental Disclosures of Cash Flow Information and Noncash Activities (Noncash Investing and Financing Activities) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Apr. 28, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Reclass of assets from investment in direct financing lease to real estate investments | $ 7,331,460 | $ 3,662,045 | ||
Pinnacle Entertainment, Inc. | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Equity raised to partially finance the original Pinnacle transaction | $ 1,823,991 | 0 | 0 | |
Pinnacle Entertainment, Inc. Master Lease | Building and improvements | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Reclass of assets from investment in direct financing lease to real estate investments | $ 2,599,180 | $ 0 | $ 0 |
Schedule IV Mortgage Loans on Real Estate Reconciliation of Loans on Real Estate (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Mortgage Loans: | |
Balance at the beginning of the period | $ 0 |
New mortgage loans | 303,684 |
Collections of principal | 0 |
Balance at the end of the period | $ 303,684 |
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