Consolidating Condensed Financial Information (Tables)

3 Months Ended

Mar. 31, 2019

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

The consolidating condensed balance sheet as of March 31, 2019 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	$	69,364	$	294,777	$	24,184	$	(5,335	)	$	382,990
Intercompany receivables		—		235,559		21,914		(257,473	)		—
Investment in and advances to unconsolidated affiliates		130,338		1,902		—		—			132,240
Investments in subsidiaries		3,716,505		—		—		(3,716,505	)		—
Property and equipment, net		17,775		2,847,556		4,789		—			2,870,120
Other assets		63,993		2,673,033		24,574		(32,432	)		2,729,168
Total assets	$	3,997,975	$	6,052,827	$	75,461	$	(4,011,745	)	$	6,114,518

Current liabilities	$	94,871	$	283,102	$	16,706	$	(5,335	)	$	389,344
Intercompany payables		232,473		—		25,000		(257,473	)		—
Long-term financing obligation to GLPI		—		962,505		—		—			962,505
Long-term debt, less current maturities		2,435,971		621,180		—		—			3,057,151
Deferred income tax liabilities		—		236,454		—		(32,432	)		204,022
Other accrued liabilities		171,397		266,835		—		—			438,232
Stockholders’ equity		1,063,263		3,682,751		33,755		(3,716,505	)		1,063,264
Total liabilities and stockholders’ equity	$	3,997,975	$	6,052,827	$	75,461	$	(4,011,745	)	$	6,114,518

The consolidating condensed balance sheet as of December 31, 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	$	48,268	$	497,309	$	27,619	$	—		$	573,196
Intercompany receivables		—		11,885		23,988		(35,873	)		—
Investment in and advances to unconsolidated affiliates		—		1,892		—		—			1,892
Investments in subsidiaries		3,648,961		—		—		(3,648,961	)		—
Property and equipment, net		18,555		2,859,271		4,780		—			2,882,606
Other assets		35,072		2,423,807		26,674		(31,785	)		2,453,768
Total assets	$	3,750,856	$	5,794,164	$	83,061	$	(3,716,619	)	$	5,911,462

Current liabilities	$	48,579	$	328,319	$	25,279	$	—		$	402,177
Intercompany payables		10,873		—		25,000		(35,873	)		—
Long-term financing obligation to GLPI		—		959,835		—		—			959,835
Long-term debt, less current maturities		2,640,046		621,193		34		—			3,261,273
Deferred income tax liabilities		—		231,795		—		(31,785	)		200,010
Other accrued liabilities		22,206		36,808		—		—			59,014
Stockholders’ equity		1,029,152		3,616,214		32,748		(3,648,961	)		1,029,153
Total liabilities and stockholders’ equity	$	3,750,856	$	5,794,164	$	83,061	$	(3,716,619	)	$	5,911,462

Consolidating Condensed Statements of Operations

The consolidating condensed statement of operations for the three months ended March 31, 2019 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	$	—			466,441		$	4,410		$	—		$	470,851
Non-gaming		1,397			161,502			2,073			—			164,972
Net revenues		1,397			627,943			6,483			—			635,823

Operating expenses:
Gaming and pari-mutuel commissions		—			207,142			3,164			—			210,306
Non-gaming		—			94,884			400			—			95,284
Marketing and promotions		—			32,053			248			—			32,301
General and administrative		—			118,552			1,336			—			119,888
Corporate		16,141			529			84			—			16,754
Impairment charges		—			958			—			—			958
Management fee		(4,735	)		4,735			—			—			—
Depreciation and amortization		1,150			56,607			—			—			57,757
Total operating expenses		12,556			515,460			5,232			—			533,248

Gain on sale or disposal of property and equipment		409			21,396			513			—			22,318
Transaction expenses		(1,227	)		(475	)		(192	)		—			(1,894	)
Income (loss) from unconsolidated affiliates		655			(50	)		—			—			605
Operating (loss) income		(11,322	)		133,354			1,572			—			123,604

Interest expense, net		(37,432	)		(35,834	)		(244	)		—			(73,510	)
Unrealized loss on restricted investments		(1,460	)		—			—			—			(1,460	)
Subsidiary income (loss)		72,255			—			—			(72,255	)		—
Income (loss) before income taxes		22,041			97,520			1,328			(72,255	)		48,634
Income tax benefit (provision)		16,188			(26,265	)		(328	)		—			(10,405	)
Net income (loss)	$	38,229		$	71,255		$	1,000		$	(72,255	)	$	38,229

The consolidating condensed statement of operations for the three months ended March 31, 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	$	—		$	335,793		$	7,735		$	—		$	343,528
Non-gaming		—			94,023			2,641			—			96,664
Net revenues		—			429,816			10,376			—			440,192

Operating expenses:
Gaming and pari-mutuel commissions		—			164,303			5,248			—			169,551
Non-gaming		—			63,975			712			—			64,687
Marketing and promotions		—			20,835			466			—			21,301
General and administrative		—			72,427			1,775			—			74,202
Corporate		10,294			322			953			—			11,569
Impairment charges		—			9,815			—			—			9,815
Management fee		(5,137	)		5,137			—			—			—
Depreciation and amortization		772			30,601			161			—			31,534
Total operating expenses		5,929			367,415			9,315			—			382,659

Loss on sale or disposal of property and equipment		—			(706	)		—			—			(706	)
Transaction expenses		(2,118	)		(430	)		—			—			(2,548	)
Loss from unconsolidated affiliates		—			(85	)		—			—			(85	)
Operating (loss) income		(8,047	)		61,180			1,061			—			54,194

Interest expense, net		(24,432	)		(6,286	)		(533	)		—			(31,251	)
Subsidiary income (loss)		43,305			—			—			(43,305	)		—
Income (loss) before income taxes		10,826			54,894			528			(43,305	)		22,943
Income tax benefit (provision)		10,029			(12,303	)		186			—			(2,088	)
Net income (loss)	$	20,855		$	42,591		$	714		$	(43,305	)	$	20,855

Consolidating Condensed Statement of Cash Flows

The consolidating condensed statement of cash flows for the three months ended March 31, 2019 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 provided by (used in) operating activities	$	13,524		$	53,239		$	(1,323	)	$	—	$	65,440
INVESTING ACTIVITIES:
Purchase of property and equipment, net		(1,154	)		(37,198	)		(8	)		—		(38,360	)
Proceeds from sale of property and equipment, net of cash sold		550			168,997			(1,602	)		—		167,945
Purchase of restricted investments		—			—			(80	)		—		(80	)
Net cash (used in) provided by investing activities		(604	)		131,799			(1,690	)		—		129,505
FINANCING ACTIVITIES:
Payments under Revolving Credit Facility		(205,000	)		—			—			—		(205,000	)
Net proceeds from (payments to) related parties		221,599			(223,672	)		2,073			—		—
Payments on other long-term payables		(23	)		(12	)		(83	)		—		(118	)
Debt issuance costs		(386	)		—			—			—		(386	)
Taxes paid related to net share settlement of equity awards		(4,322	)		—			—			—		(4,322	)
Net cash provided by (used in) financing activities		11,868			(223,684	)		1,990			—		(209,826	)
Increase (decrease) in cash, cash equivalents and restricted cash		24,788			(38,646	)		(1,023	)		—		(14,881	)
Cash, cash equivalents and restricted cash, beginning of period		12,844			222,672			11,175			—		246,691
Cash, cash equivalents and restricted cash, end of period	$	37,632		$	184,026		$	10,152		$	—	$	231,810

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO AMOUNTS REPORTED WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents	$	37,632			170,099			9,152		$	—	$	216,883
Restricted cash		—			7,892			—			—		7,892
Restricted and escrow cash included in other noncurrent assets		—			6,035			1,000			—		7,035
Total cash, cash equivalents and restricted cash	$	37,632		$	184,026		$	10,152		$	—	$	231,810

The consolidating condensed statement of cash flows for the three months ended March 31, 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	$	(7,128	)	$	87,253		$	(2,118	)	$	—	$	78,007
INVESTING ACTIVITIES:
Purchase of property and equipment, net		(1,233	)		(19,011	)		(1,027	)		—		(21,271	)
Proceeds from sale of property and equipment		—			150			—			—		150
Net cash used in investing activities		(1,233	)		(18,861	)		(1,027	)		—		(21,121	)
FINANCING ACTIVITIES:
Net proceeds from (payments to) related parties		62,560			(66,660	)		4,100			—		—
Payments on other long-term payables		(22	)		(78	)		(70	)		—		(170	)
Debt issuance costs		(304	)		—			—			—		(304	)
Taxes paid related to net share settlement of equity awards		(7,502	)		—			—			—		(7,502	)
Net cash provided by (used in) financing activities		54,732			(66,738	)		4,030			—		(7,976	)
INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		46,371			1,654			885			—		48,910
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR		13,836			118,483			15,430			—		147,749
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	60,207		$	120,137		$	16,315		$	—	$	196,659

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO AMOUNTS REPORTED WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents	$	59,490		$	116,394		$	7,254		$	—	$	183,138
Restricted cash		717			2,743			199			—		3,659
Restricted cash included in other noncurrent assets		—			1,000			8,862			—		9,862
TOTAL CASH, CASH EQUIVALENTS AND RESTRICTED CASH	$	60,207		$	120,137		$	16,315		$	—	$	196,659