Consolidating Condensed Financial Information (Tables)

9 Months Ended

Sep. 30, 2019

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

The consolidating condensed balance sheet as of September 30, 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	$	78,612	$	864,016	$	20,911	$	—		$	963,539
Intercompany receivables		—		438,466		32,402		(470,868	)		—
Investment in and advances to unconsolidated affiliates		127,480		2,316		—		—			129,796
Investments in subsidiaries		3,847,795		—		—		(3,847,795	)		—
Property and equipment, net		17,544		2,616,883		684		—			2,635,111
Other assets		72,945		2,299,720		15,868		(35,738	)		2,352,795
Total assets	$	4,144,376	$	6,221,401	$	69,865	$	(4,354,401	)	$	6,081,241

Current liabilities	$	75,851	$	321,286	$	17,834	$	—		$	414,971
Intercompany payables		445,868		—		25,000		(470,868	)		—
Long-term financing obligation to GLPI		—		967,982		—		—			967,982
Long-term debt, less current maturities		2,329,800		621,155		—		—			2,950,955
Deferred income tax liabilities		—		260,449		166		(35,738	)		224,877
Other liabilities		166,080		229,598		—		—			395,678
Stockholders’ equity		1,126,777		3,820,931		26,865		(3,847,795	)		1,126,778
Total liabilities and stockholders’ equity	$	4,144,376	$	6,221,401	$	69,865	$	(4,354,401	)	$	6,081,241

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		—		7,831		28,042		(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		2,863,311		740		—			2,882,606
Other assets		35,072		2,423,807		26,674		(31,785	)		2,453,768
Total assets	$	3,750,856	$	5,794,150	$	83,075	$	(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 liabilities		22,206		36,808		—		—			59,014
Stockholders’ equity		1,029,152		3,616,200		32,762		(3,648,961	)		1,029,153
Total liabilities and stockholders’ equity	$	3,750,856	$	5,794,150	$	83,075	$	(3,716,619	)	$	5,911,462

Consolidating Condensed Statements of Operations

The consolidating condensed statement of operations for the three months ended September 30, 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	$	—			457,852		$	148		$	—		$	458,000
Non-gaming		1,785			202,018			1,378			—			205,181
Net revenues		1,785			659,870			1,526			—			663,181

Operating expenses:
Gaming and pari-mutuel commissions		—			202,555			—			—			202,555
Non-gaming		—			99,813			—			—			99,813
Marketing and promotions		—			33,291			1			—			33,292
General and administrative		—			122,802			(35	)		—			122,767
Corporate		13,490			(541	)		65			—			13,014
Management fee		(6,401	)		6,401			—			—			—
Depreciation and amortization		1,311			51,225			56			—			52,592
Total operating expenses		8,400			515,546			87			—			524,033

Loss on sale or disposal of property and equipment		—			(284	)		—			—			(284	)
Transaction expenses		(12,442	)		—			—			—			(12,442	)
(Loss) income from unconsolidated affiliates		(1,552	)		37			—			—			(1,515	)
Operating (loss) income		(20,609	)		144,077			1,439			—			124,907
Other Expense:
Interest expense, net		(35,600	)		(35,948	)		(349	)		—			(71,897	)
Loss on early retirement of debt, net		(1,204	)		—			—			—			(1,204	)
Unrealized gain on restricted investments		3,318			—			—			—			3,318
Subsidiary income (loss)		71,256			—			—			(71,256	)		—
Income (loss) before income taxes		17,161			108,129			1,090			(71,256	)		55,124
Income tax benefit (provision)		19,894			(37,633	)		(330	)		—			(18,069	)
Net income (loss)	$	37,055		$	70,496		$	760		$	(71,256	)	$	37,055

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
Other Expense:
Interest expense, net		(27,582	)		(6,088	)		(415	)		—			(34,085	)
Subsidiary income (loss)		61,964			—			—			(61,964	)		—
Income (loss) before income taxes		32,850			89,250			(2,452	)		(61,964	)		57,684
Income tax benefit (provision)		4,854			(25,778	)		944			—			(19,980	)
Net income (loss)	$	37,704		$	63,472		$	(1,508	)	$	(61,964	)	$	37,704

The consolidating condensed statement of operations for the nine months ended September 30, 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	$	—		$	1,381,231		$	4,617		$	—		$	1,385,848
Non-gaming		4,966			540,394			4,917			—			550,277
Net revenues		4,966			1,921,625			9,534			—			1,936,125

Operating expenses:
Gaming and pari-mutuel commissions		—			612,937			3,164			—			616,101
Non-gaming		—			290,053			400			—			290,453
Marketing and promotions		—			97,422			251			—			97,673
General and administrative		—			358,884			1,202			—			360,086
Corporate		50,352			166			301			—			50,819
Impairment charges		—			958			—			—			958
Management fee		(16,956	)		16,956			—			—			—
Depreciation and amortization		3,701			163,125			56			—			166,882
Total operating expenses		37,097			1,540,501			5,374			—			1,582,972

Gain on sale or disposal of property and equipment		409			21,193			66			—			21,668
Transaction expenses		(20,470	)		(913	)		(245	)		—			(21,628	)
(Loss) income from unconsolidated affiliates		(2,281	)		149			—			—			(2,132	)
Operating (loss) income		(54,473	)		401,553			3,981			—			351,061
Other Expense:
Interest expense, net		(108,617	)		(107,507	)		(1,081	)		—			(217,205	)
Loss on early retirement of debt, net		(1,204	)		—			—			—			(1,204	)
Unrealized gain on restricted investments		460			—			—			—			460
Subsidiary income (loss)		203,531			—			—			(203,531	)		—
Income (loss) before income taxes		39,697			294,046			2,900			(203,531	)		133,112
Income tax benefit (provision)		54,523			(92,515	)		(900	)		—			(38,892	)
Net income (loss)	$	94,220		$	201,531		$	2,000		$	(203,531	)	$	94,220

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
Other Expense:
Interest expense, net		(76,927	)		(18,293	)		(1,359	)		—			(96,579	)
Loss on early retirement of debt, net		(162	)		—			—			—			(162	)
Subsidiary income (loss)		166,040			—			—			(166,040	)		—
Income (loss) before income taxes		70,858			222,740			(922	)		(166,040	)		126,636
Income tax benefit (provision)		24,497			(56,519	)		741			—			(31,281	)
Net income (loss)	$	95,355		$	166,221		$	(181	)	$	(166,040	)	$	95,355

Consolidating Condensed Statement of Cash Flows

The consolidating condensed statement of cash flows for the nine months ended September 30, 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 (used in) provided by operating activities	$	(83,572	)	$	342,979		$	676		$	—	$	260,083
INVESTING ACTIVITIES:
Purchase of property and equipment, net		(3,510	)		(131,506	)		—			—		(135,016	)
Sale of restricted investments		—			—			4,962			—		4,962
Proceeds from sale of property and equipment, net of cash sold		33			171,398			(2,070	)		—		169,361
Investments in and loans to unconsolidated affiliates		(815	)		—			—			—		(815	)
Net cash (used in) provided by investing activities		(4,292	)		39,892			2,892			—		38,492
FINANCING ACTIVITIES:
Net proceeds from (payments to) related parties		434,993			(430,633	)		(4,360	)		—		—
Payments on Term Loan		(70,000	)		—			—			—		(70,000	)
Net payments under Revolving Credit Facility		(245,000	)		—			—			—		(245,000	)
Debt issuance costs		(458	)		—			—			—		(458	)
Taxes paid related to net share settlement of equity awards		(7,574	)		—			—			—		(7,574	)
Dividends received (paid)		—			7,900			(7,900	)		—		—
Payments on other long-term payables		(72	)		(36	)		(264	)				(372	)
Net cash provided by (used in) financing activities		111,889			(422,769	)		(12,524	)		—		(323,404	)
Increase (decrease) in cash, cash equivalents and restricted cash		24,025			(39,898	)		(8,956	)		—		(24,829	)
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	$	36,869		$	182,774		$	2,219		$	—	$	221,862

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO AMOUNTS REPORTED WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents	$	36,869			169,819			2,143		$	—	$	208,831
Restricted cash		—			6,361			76			—		6,437
Restricted and escrow cash included in other noncurrent assets		—			6,594			—			—		6,594
Total cash, cash equivalents and restricted cash	$	36,869		$	182,774		$	2,219		$	—	$	221,862

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	)	$	283,410		$	2,781		$	—	$	263,448
INVESTING ACTIVITIES:
Purchase of property and equipment, net		(2,620	)		(86,405	)		(57	)		—		(89,082	)
Proceeds from sale of property and equipment		—			920			—			—		920
Net cash (used in) provided by business combinations		(328,925	)		22,651			—			—		(306,274	)
Investment in and loans to unconsolidated affiliates		—			(698	)		—			—		(698	)
Net cash used in investing activities		(331,545	)		(63,532	)		(57	)		—		(395,134	)
FINANCING ACTIVITIES:
Net proceeds from (payments to) related parties		208,772			(214,023	)		5,251			—		—
Proceeds from issuance of New Term Loan		—			—			—			—		—
Proceeds from issuance of 6% Senior Notes due 2026		—			—			600,000			—		600,000
Net borrowings under Revolving Credit Facility		180,000			—			—			—		180,000
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
Payments on other long-term payables		(67	)		(217	)		(217	)		—		(501	)
Net cash provided by (used in) financing activities		372,857			(214,240	)		605,034			—		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