Consolidating Condensed Financial Information (Tables)

9 Months Ended

Sep. 30, 2018

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

The consolidating condensed balance sheet as of September 30, 2018 is as follows:

Balance Sheet	Eldorado Resorts, Inc. (Parent Obligor)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating and Eliminating Entries			Eldorado Resorts, Inc. Consolidated
	(in thousands)
Current assets	$	48,687	$	350,653	$	26,868	$	—		$	426,208
Intercompany receivables		65,375		—		23,067		(88,442	)		—
Investments in subsidiaries		2,931,271		—		—		(2,931,271	)		—
Escrow cash		—		—		604,100		—			604,100
Property and equipment, net		13,077		1,472,777		3,012		—			1,488,866
Other assets		28,421		1,929,196		27,032		(26,649	)		1,958,000
Total assets	$	3,086,831	$	3,752,626	$	684,079	$	(3,046,362	)	$	4,477,174

Current liabilities	$	54,422	$	178,758	$	28,756	$	—		$	261,936
Intercompany payables		—		63,442		25,000		(88,442	)		—
Long-term debt, less current maturities		1,992,301		375,000		600,133		—			2,967,434
Deferred income tax liabilities		—		221,139		—		(26,649	)		194,490
Other accrued liabilities		4,036		13,127		—		—			17,163
Stockholders’ equity		1,036,072		2,901,160		30,190		(2,931,271	)		1,036,151
Total liabilities and stockholders’ equity	$	3,086,831	$	3,752,626	$	684,079	$	(3,046,362	)	$	4,477,174

The consolidating condensed balance sheet as of December 31, 2017 is as follows:

Balance Sheet	Eldorado Resorts, Inc. (Parent Obligor)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating and Eliminating Entries			Eldorado Resorts, Inc. Consolidated
	(in thousands)
Current assets	$	27,572	$	201,321	$	22,139	$	—		$	251,032
Intercompany receivables		274,148		—		34,492		(308,640	)		—
Investments in subsidiaries		2,437,287		—		—		(2,437,287	)		—
Property and equipment, net		12,042		1,483,473		7,302		—			1,502,817
Other assets		37,458		1,764,291		27,283		(36,409	)		1,792,623
Total assets	$	2,788,507	$	3,449,085	$	91,216	$	(2,782,336	)	$	3,546,472

Current liabilities	$	28,677	$	169,348	$	25,726	$	—		$	223,751
Intercompany payables		—		283,640		25,000		(308,640	)		—
Long-term debt, less current maturities		1,814,185		375,000		393		—			2,189,578
Deferred income tax liabilities		—		199,376		—		(36,409	)		162,967
Other accrued liabilities		4,127		19,624		4,828		—			28,579
Stockholders’ equity		941,518		2,402,097		35,269		(2,437,287	)		941,597
Total liabilities and stockholders’ equity	$	2,788,507	$	3,449,085	$	91,216	$	(2,782,336	)	$	3,546,472

Consolidating Condensed Statements of Operations

The consolidating condensed statement of operations for the three months ended September 30, 2018 is as follows:

	Eldorado Resorts, Inc. (Parent Obligor)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Eldorado Resorts, Inc. Consolidated
	(in thousands)
Revenues:
Gaming and pari-mutuel commissions	$	—		$	359,897		$	8,272		$	—		$	368,169
Non-gaming		10			116,639			2,435			—			119,084
Net revenues		10			476,536			10,707			—			487,253

Operating expenses:
Gaming and pari-mutuel commissions		—			174,602			5,460			—			180,062
Non-gaming		—			68,046			627			—			68,673
Marketing and promotions		—			22,687			435			—			23,122
General and administrative		—			73,755			1,844			—			75,599
Corporate		8,596			94			527			—			9,217
Impairment charges		—			—			3,787			—			3,787
Management fee		(7,067	)		7,067			—			—			—
Depreciation and amortization		923			34,782			55			—			35,760
Total operating expenses		2,452			381,033			12,735			—			396,220

Loss on sale of asset or disposal of property and equipment		—			(101	)		(9	)		—			(110	)
Proceeds from terminated sale		5,000			—			—						5,000
Transaction expenses		(4,090	)		(1	)		—			—			(4,091	)
Equity in loss of unconsolidated affiliate		—			(63	)		—			—			(63	)
Operating (loss) income		(1,532	)		95,338			(2,037	)		—			91,769

Interest expense, net		(26,482	)		(6,088	)		(1,515	)		—			(34,085	)
Subsidiary income (loss)		60,864			—			—			(60,864	)		—
Income (loss) before income taxes		32,850			89,250			(3,552	)		(60,864	)		57,684
Income tax benefit (provision)		4,854			(25,778	)		944			—			(19,980	)
Net income (loss)	$	37,704		$	63,472		$	(2,608	)	$	(60,864	)	$	37,704

The consolidating condensed statement of operations for the three months ended September 30, 2017 is as follows:

	Eldorado Resorts, Inc. (Parent Obligor)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Eldorado Resorts, Inc. Consolidated
	(in thousands)
Revenues:
Gaming and pari-mutuel commissions	$	—		$	343,825		$	8,823		$	—		$	352,648
Non-gaming		—			117,347			2,883			—			120,230
Net revenues		—			461,172			11,706			—			472,878

Operating expenses:
Gaming and pari-mutuel commissions		—			168,102			5,877			—			173,979
Non-gaming		—			75,445			920			—			76,365
Marketing and promotions		—			25,623			816			—			26,439
General and administrative		—			73,840			1,810			—			75,650
Corporate		7,865			(1,464	)		1,317			—			7,718
Management fee		(7,666	)		7,366			300			—			—
Depreciation and amortization		303			28,675			144			—			29,122
Total operating expenses		502			377,587			11,184			—			389,273

Gain on sale of asset or disposal of property and equipment		—			4			—			—			4
Transaction expenses		(455	)		(1,639	)		—			—			(2,094	)
Equity in loss of unconsolidated affiliate		—			(23	)		—			—			(23	)
Operating (loss) income		(957	)		81,927			522			—			81,492

Interest expense, net		(22,583	)		(6,184	)		(416	)		—			(29,183	)
Loss on early retirement of debt, net		(10,030	)		—			—			—			(10,030	)
Subsidiary income (loss)		51,738			—			—			(51,738	)		—
(Loss) income before income taxes		18,168			75,743			106			(51,738	)		42,279
Income tax benefit (provision)		11,519			(24,085	)		(26	)		—			(12,592	)
Net (loss) income	$	29,687		$	51,658		$	80		$	(51,738	)	$	29,687

The consolidating condensed statement of operations for the nine months ended September 30, 2018 is as follows:

	Eldorado Resorts, Inc. (Parent Obligor)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Eldorado Resorts, Inc. Consolidated
	(in thousands)
Revenues:
Gaming and pari-mutuel commissions	$	—		$	1,036,650		$	23,767		$	—		$	1,060,417
Non-gaming		10			316,216			7,604			—			323,830
Net revenues		10			1,352,866			31,371			—			1,384,247

Operating expenses:
Gaming and pari-mutuel commissions		—			503,741			15,817			—			519,558
Non-gaming		—			198,113			2,022			—			200,135
Marketing and promotions		—			64,943			1,312			—			66,255
General and administrative		—			218,054			5,492			—			223,546
Corporate		30,148			751			2,119			—			33,018
Impairment charges		—			9,815			3,787			—			13,602
Management fee		(19,234	)		19,234			—			—			—
Depreciation and amortization		2,646			96,180			378			—			99,204
Total operating expenses		13,560			1,110,831			30,927			—			1,155,318

Loss on sale of asset or disposal of property and equipment		—			(386	)		(7	)		—			(393	)
Proceeds from terminated sale		5,000			—									5,000
Transaction expenses		(9,543	)		(500	)		—			—			(10,043	)
Equity in loss of unconsolidated affiliate		—			(116	)		—			—			(116	)
Operating (loss) income		(18,093	)		241,033			437			—			223,377

Interest expense, net		(75,827	)		(18,293	)		(2,459	)		—			(96,579	)
Loss on early retirement of debt, net		(162	)		—			—			—			(162	)
Subsidiary income (loss)		164,940			—			—			(164,940	)		—
Income (loss) before income taxes		70,858			222,740			(2,022	)		(164,940	)		126,636
Income tax benefit (provision)		24,497			(56,519	)		741			—			(31,281	)
Net income (loss)	$	95,355		$	166,221		$	(1,281	)	$	(164,940	)	$	95,355

The consolidating condensed statement of operations for the nine months ended September 30, 2017 is as follows:

	Eldorado Resorts, Inc. (Parent Obligor)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Eldorado Resorts, Inc. Consolidated
	(in thousands)
Revenues:
Gaming and pari-mutuel commissions	$	—		$	760,033		$	14,510		$	—		$	774,543
Non-gaming		—			271,515			4,839			—			276,354
Net revenues		—			1,031,548			19,349			—			1,050,897

Operating expenses:
Gaming and pari-mutuel commissions		—			389,182			9,722			—			398,904
Non-gaming		—			178,036			1,569			—			179,605
Marketing and promotions		—			56,641			1,458			—			58,099
General and administrative		—			165,279			3,060			—			168,339
Corporate		21,413			(1,791	)		2,112			—			21,734
Management fee		(21,214	)		20,714			500			—			—
Depreciation and amortization		635			68,767			233			—			69,635
Total operating expenses		834			876,828			18,654			—			896,316

Loss on sale of asset or disposal of property and equipment		(21	)		(30	)		—			—			(51	)
Transaction expenses		(69,628	)		(19,544	)		—			—			(89,172	)
Equity in loss of unconsolidated affiliate		—			(305	)		—			—			(305	)
Operating (loss) income		(70,483	)		134,841			695			—			65,053

Interest expense, net		(49,576	)		(19,110	)		(694	)		—			(69,380	)
Loss on early retirement of debt, net		(37,347	)		—			—			—			(37,347	)
Subsidiary income (loss)		77,393			—			—			(77,393	)		—
(Loss) income before income taxes		(80,013	)		115,731			1			(77,393	)		(41,674	)
Income tax benefit (provision)		64,455			(38,405	)		66			—			26,116
Net (loss) income	$	(15,558	)	$	77,326		$	67		$	(77,393	)	$	(15,558	)

The consolidating condensed statement of operations for the nine months ended September 30, 2017 is as follows:

	Eldorado Resorts, Inc. (Parent Obligor)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries			Eldorado Resorts, Inc. Consolidated
	(in thousands)
Revenues:
Gaming and pari-mutuel commissions	$	—		$	760,033		$	14,510		$	—		$	774,543
Non-gaming		—			271,515			4,839			—			276,354
Net revenues		—			1,031,548			19,349			—			1,050,897

Operating expenses:
Gaming and pari-mutuel commissions		—			389,182			9,722			—			398,904
Non-gaming		—			178,036			1,569			—			179,605
Marketing and promotions		—			56,641			1,458			—			58,099
General and administrative		—			165,279			3,060			—			168,339
Corporate		21,413			(1,791	)		2,112			—			21,734
Management fee		(21,214	)		20,714			500			—			—
Depreciation and amortization		635			68,767			233			—			69,635
Total operating expenses		834			876,828			18,654			—			896,316

Loss on sale of asset or disposal of property and equipment		(21	)		(30	)		—			—			(51	)
Transaction expenses		(69,628	)		(19,544	)		—			—			(89,172	)
Equity in loss of unconsolidated affiliate		—			(305	)		—			—			(305	)
Operating (loss) income		(70,483	)		134,841			695			—			65,053

Interest expense, net		(49,576	)		(19,110	)		(694	)		—			(69,380	)
Loss on early retirement of debt, net		(37,347	)		—			—			—			(37,347	)
Subsidiary income (loss)		77,393			—			—			(77,393	)		—
(Loss) income before income taxes		(80,013	)		115,731			1			(77,393	)		(41,674	)
Income tax benefit (provision)		64,455			(38,405	)		66			—			26,116
Net (loss) income	$	(15,558	)	$	77,326		$	67		$	(77,393	)	$	(15,558	)

Consolidating Condensed Statement of Cash Flows

The consolidating condensed statement of cash flows for the nine months ended September 30, 2018 is as follows:

	Eldorado Resorts, Inc. (Parent Obligor)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries		Eldorado Resorts, Inc. Consolidated
	(in thousands)
Net cash (used in) provided by operating activities	$	(22,743	)	$	283,414		$	2,777		$	—	$	263,448
INVESTING ACTIVITIES:
Purchase of property and equipment, net		(2,620	)		(85,384	)		(1,078	)		—		(89,082	)
Proceeds from sale of property and equipment		—			920			—			—		920
Cash (used in) provided by business combinations		(328,925	)		22,651			—			—		(306,274	)
Investment in and loans to unconsolidated affiliate		—			(698	)		—			—		(698	)
Net cash used in investing activities		(331,545	)		(62,511	)		(1,078	)		—		(395,134	)
FINANCING ACTIVITIES:
Proceeds from issuance of 6% Senior Notes due 2026		—			—			600,000			—		600,000
Borrowings under Revolving Credit Facility		215,358			—			—			—		215,358
Payments under Revolving Credit Facility		(35,358	)		—			—			—		(35,358	)
Net proceeds from (payments to) related parties		208,772			(215,048	)		6,276			—		—
Payments on other long-term payables		(67	)		(217	)		(217	)		—		(501	)
Debt issuance costs		(5,401	)		—			—			—		(5,401	)
Taxes paid related to net share settlement of equity awards		(10,601	)		—			—			—		(10,601	)
Proceeds from exercise of stock options		154			—			—			—		154
Net cash provided by (used in) financing activities		372,857			(215,265	)		606,059			—		763,651
Increase in cash, cash equivalents and restricted cash		18,569			5,638			607,758			—		631,965
Cash, cash equivalents and restricted cash, beginning of period		13,837			118,483			15,429			—		147,749
Cash, cash equivalents and restricted cash, end of period	$	32,406		$	124,121		$	623,187		$	—	$	779,714

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO AMOUNTS REPORTED WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents	$	31,688		$	122,451			9,947		$	—	$	164,086
Restricted cash		718			670			234			—		1,622
Restricted and escrow cash included in other noncurrent assets		—			1,000			613,006			—		614,006
Total cash, cash equivalents and restricted cash	$	32,406		$	124,121		$	623,187		$	—	$	779,714

The consolidating condensed statement of cash flows for the nine months ended September 30, 2017 is as follows:

	Eldorado Resorts, Inc. (Parent Obligor)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating and Eliminating Entries		Eldorado Resorts, Inc. Consolidated
	(in thousands)
Net cash (used in) provided by operating activities	$	(64,274	)	$	131,253		$	4,652		$	—	$	71,631
INVESTING ACTIVITIES:
Purchase of property and equipment, net		(4,128	)		(48,439	)		(363	)		—		(52,930	)
Cash (used in) provided by business combinations		(1,355,371	)		37,103			5,216			—		(1,313,052	)
Net cash used in investing activities		(1,359,499	)		(11,336	)		4,853			—		(1,365,982	)
FINANCING ACTIVITIES:
Proceeds from issuance of Term Loan		1,450,000			—			—			—		1,450,000
Proceeds from issuance of 6% Senior Notes Due 2025		875,000			—			—			—		875,000
Borrowings under Revolving Credit Facility		207,953			—			—			—		207,953
Payments under Term Loan		(866,750	)		—			—			—		(866,750	)
Payments under Revolving Credit Facility		(236,953	)		—			—			—		(236,953	)
Net (payments to) proceeds from related parties		41,526			(46,694	)		5,168			—		—
Debt premium proceeds		27,500											27,500
Payments on other long-term payables		(23	)		(242	)		(105	)		—		(370	)
Debt issuance costs		(51,338	)		—			—			—		(51,338	)
Taxes paid related to net share settlement of equity awards		(10,927	)		—			—			—		(10,927	)
Proceeds from exercise of stock options		2,900			—			—			—		2,900
Net cash provided by (used in) financing activities		1,438,888			(46,936	)		5,063			—		1,397,015
Increase in cash, cash equivalents and restricted cash		15,115			72,981			14,568			—		102,664
Cash, cash equivalents and restricted cash, beginning of period		1,410			61,702			332			—		63,444
Cash, cash equivalents and restricted cash, end of period	$	16,525		$	134,683		$	14,900		$	—	$	166,108

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO AMOUNTS REPORTED WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents	$	15,775		$	113,302		$	5,826		$	—	$	134,903
Restricted cash		750			20,381			177			—		21,308
Restricted cash included in other noncurrent assets		—			1,000			8,897			—		9,897
Total cash, cash equivalents and restricted cash	$	16,525		$	134,683		$	14,900		$	—	$	166,108