Note 14 - Segment Information

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 14.    SEGMENT INFORMATION

We have aggregated our properties in order to present three Reportable Segments: (i) Las Vegas Locals; (ii) Downtown Las Vegas; and (iii) Midwest & South. The table in Note 1, Summary of Significant Accounting Policies, lists the classification of each of our properties.

Results of Operations - Total Reportable Segment Total Revenues and Adjusted EBITDAR

We evaluate each of our property's profitability based upon Property Adjusted EBITDAR, which represents each property's earnings before interest expense, income taxes, depreciation and amortization, deferred rent, share-based compensation expense, project development, preopening and writedowns expenses, impairments of assets, other operating items, net, gain or loss on early retirements of debt and master lease rent expense, as applicable. Total Reportable Segment Adjusted EBITDAR is the aggregate sum of the Property Adjusted EBITDAR for each of the properties included in our Las Vegas Locals, Downtown Las Vegas, and Midwest & South segments. Results for Downtown Las Vegas include the results of our Hawaii-based travel agency and captive insurance company. Results for Lattner, our Illinois distributed gaming operator, are included in our Midwest & South segment.

The following tables set forth, for the periods indicated, departmental revenues for our Reportable Segments:

	Year Ended December 31, 2019
(In thousands)	Gaming Revenue		Food & Beverage Revenue		Room Revenue		Other Revenue		Total Revenue
Revenues
Las Vegas Locals	$	566,443	$	156,932	$	105,619	$	51,941	$	880,935
Downtown Las Vegas		138,623		57,732		28,784		32,528		257,667
Midwest & South		1,778,227		233,189		102,784		73,317		2,187,517
Total Revenues	$	2,483,293	$	447,853	$	237,187	$	157,786	$	3,326,119

	Year Ended December 31, 2018
(In thousands)	Gaming Revenue		Food & Beverage Revenue		Room Revenue		Other Revenue		Total Revenue
Revenues
Las Vegas Locals	$	565,579	$	155,107	$	100,110	$	52,708	$	873,504
Downtown Las Vegas		132,870		55,767		26,943		32,530		248,110
Midwest & South		1,226,975		157,014		72,447		48,680		1,505,116
Total Revenues	$	1,925,424	$	367,888	$	199,500	$	133,918	$	2,626,730

	Year Ended December 31, 2017
(In thousands)	Gaming Revenue		Food & Beverage Revenue		Room Revenue		Other Revenue		Total Revenue
Revenues
Las Vegas Locals	$	563,785	$	154,451	$	98,406	$	51,735	$	868,377
Downtown Las Vegas		133,072		54,451		24,623		32,295		244,441
Midwest & South		1,043,411		137,477		63,766		43,347		1,288,001
Total Revenues	$	1,740,268	$	346,379	$	186,795	$	127,377	$	2,400,819

The following table reconciles, for the periods indicated, Total Reportable Segment Adjusted EBITDAR to operating income, as reported in our accompanying consolidated statements of operations:

	Year Ended December 31,
(In thousands)	2019			2018			2017
Adjusted EBITDAR
Las Vegas Locals	$	283,030		$	274,344		$	249,906
Downtown Las Vegas		62,413			56,517			54,613
Midwest & South		635,182			432,366			364,458
Total Reportable Segment Adjusted EBITDAR		980,625			763,227			668,977
Corporate expense		(83,937	)		(81,938	)		(73,046	)
Adjusted EBITDAR		896,688			681,289			595,931
Other operating costs and expenses
Deferred rent		979			1,100			1,267
Master lease rent expense		97,723			20,682			—
Depreciation and amortization		276,569			229,979			217,522
Share-based compensation expense		25,202			25,379			17,413
Project development, preopening and writedowns		21,728			45,698			14,454
Impairment of assets		—			993			(426	)
Other operating items, net		1,919			2,174			1,900
Total other operating costs and expenses		424,120			326,005			252,130
Operating income	$	472,568		$	355,284		$	343,801

For purposes of this presentation, corporate expense excludes its portion of share-based compensation expense. Corporate expense represents unallocated payroll, professional fees, aircraft expenses and various other expenses not directly related to our casino and hotel operations.

Total Reportable Segment Assets

The Company's assets by Reportable Segment consisted of the following amounts:

	December 31,		December 31,
(In thousands)	2019		2018
Assets
Las Vegas Locals	$	1,804,476	$	1,732,138
Downtown Las Vegas		212,936		169,495
Midwest & South		4,229,174		3,562,926
Total Reportable Segment Assets		6,246,586		5,464,559
Corporate		403,559		291,780
Total Assets	$	6,650,145	$	5,756,339

Capital Expenditures

The Company's capital expenditures by Reportable Segment consisted of the following:

	Year Ended December 31,
(In thousands)	2019		2018			2017
Capital Expenditures:
Las Vegas Locals	$	26,207	$	33,503		$	59,382
Downtown Las Vegas		8,881		12,885			21,705
Midwest & South		80,883		69,285			37,657
Total Reportable Segment Capital Expenditures		115,971		115,673			118,744
Corporate		88,633		50,238			71,673
Total Capital Expenditures		204,604		165,911			190,417
Change in Accrued Property Additions		3,033		(4,367	)		47
Cash-Based Capital Expenditures	$	207,637	$	161,544		$	190,464

The Company utilizes the Corporate entities to centralize the development of major renovation and other capital development projects that are included as construction in progress. After the project is complete, the corporate entities transfer the projects to the segment subsidiaries.