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Segment Information
 12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment Information Segment Information
We have aggregated our operating segments into four reportable segments based on the similar characteristics of the operating segments within the regions in which they operate: Northeast, South, West and Midwest. The Other category is included in the following tables in order to reconcile the segment information to the consolidated information. Inter-segment revenues were not material in any of the years presented below. During the fourth quarter 2018, the Company made revisions to its reportable segments upon the consummation of the Pinnacle Acquisition. Apart from the addition of the new properties, the most significant change was dividing the South/West segment into two separate reportable segments. The financial information presented below reflects such changes, including restating prior year financial information.
The Company utilizes Adjusted EBITDAR (as defined below) as its measure of segment profit or loss. The following table highlights our revenues and Adjusted EBITDAR for each reportable segment and reconciles Adjusted EBITDAR to Income (loss) before income taxes.
 
For the year ended December 31,
(in thousands)
2018
 
2017
 
2016
Revenues:
 
 
 
 
 
Northeast segment
$
1,891,514

 
$
1,756,579

 
$
1,741,809

South segment
394,351

 
224,247

 
185,832

West segment
437,887

 
380,418

 
360,776

Midwest segment
823,717

 
735,033

 
704,272

Other (1)
40,449

 
51,693

 
41,691

Revenues
$
3,587,918

 
$
3,147,970

 
$
3,034,380

 
 
 
 
 
 
Adjusted EBITDAR (2):
 
 
 
 
 
Northeast segment
$
583,791

 
$
549,304

 
$
536,446

South segment
118,962

 
62,580

 
56,060

West segment
114,267

 
72,744

 
72,509

Midwest segment
294,332

 
249,744

 
239,899

Other (1)
(68,111
)
 
(55,223
)
 
(67,773
)
Adjusted EBITDAR (2)
1,043,241

 
879,149

 
837,141

 
 
 
 
 
 
Other operating benefits (costs) and other income (expenses):
 
 
 
 
 
Rent expense associated with triple net operating lease (3)
(3,797
)
 
—

 
—

Charge for stock compensation
(12,034
)
 
(7,780
)
 
(6,871
)
Cash-settled stock award variance
19,611

 
(23,471
)
 
6,688

Gain (loss) on disposal of assets
(3,168
)
 
(172
)
 
2,471

Contingent purchase price
(454
)
 
6,840

 
(1,277
)
Pre-opening and acquisition costs
(95,020
)
 
(9,732
)
 
—

Depreciation and amortization
(268,990
)
 
(267,062
)
 
(271,214
)
Provision for loan loss and unfunded loan commitments to the JIVDC, net of recoveries, and impairment losses
(17,921
)
 
(107,810
)
 
—

Insurance recoveries, net of deductible charges
68

 
289

 
726

Non-operating items for Kansas JV
(5,118
)
 
(5,866
)
 
(10,311
)
Interest expense
(539,417
)
 
(466,761
)
 
(459,243
)
Interest income
1,005

 
3,552

 
24,186

Loss on early extinguishment of debt
(20,964
)
 
(23,963
)
 
—

Other
(7,121
)
 
(2,257
)
 
(1,679
)
Income (loss) before income taxes
$
89,921

 
$
(25,044
)
 
$
120,617

(1)
The Other category consists of the Company's standalone racing operations, namely Sanford-Orlando Kennel Club, located in Longwood, Florida, and the Company’s joint venture interests in Texas and New Jersey (see Note 6, “Investments in and Advances to Unconsolidated Affiliates”). The Other category also includes PIV, our management contract for Retama Park Racetrack, and our live and televised poker tournament series that
operates under the trade name, Heartland Poker Tour. Expenses incurred for corporate and shared services activities that are directly attributable to a property or are otherwise incurred to support a property are allocated to each property. The Other category also includes corporate overhead costs, which consist of certain expenses, such as: payroll, professional fees, travel expenses and other general and administrative expenses that do not directly relate to or have otherwise been allocated to a property.
(2)
The Company defines Adjusted EBITDAR as earnings before interest income and expense, income taxes, depreciation and amortization, rent expense associated with our triple net operating leases, stock compensation, debt extinguishment and financing charges, impairment charges, insurance recoveries and deductible charges, changes in the estimated fair value of our contingent purchase price obligations, gain or loss on disposal of assets, the difference between budget and actual expense for cash-settled stock-based awards, pre-opening and acquisition costs, and other income or expenses. Adjusted EBITDAR is also inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (such as depreciation and amortization) added back for our joint venture in Kansas Entertainment. Adjusted EBITDAR excludes payments associated with our Master Leases with GLPI as these leases are accounted for as financing obligations.
(3)
During the year ended December 31, 2018, the Company's only triple net operating lease was the Meadow Lease.
 
For the year ended December 31,
(in thousands)
2018
 
2017
 
2016
Capital expenditures:
 
 
 
 
 
Northeast segment
$
38,873

 
$
26,283

 
$
34,380

South segment
10,587

 
6,354

 
6,249

West segment
12,816

 
35,671

 
24,209

Midwest segment
25,285

 
26,176

 
27,218

Other
4,996

 
4,777

 
5,189

Total capital expenditures
$
92,557

 
$
99,261

 
$
97,245

(in thousands)
Northeast
 
South
 
West
 
Midwest
 
Other
 
Total
As of December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Investment in and advances to unconsolidated affiliates
$
105

 
$
—

 
$
—

 
$
89,350

 
$
39,033

 
$
128,488

Total assets (1)
$
1,330,256

 
$
1,082,304

 
$
755,665

 
$
1,411,468

 
$
6,381,319

 
$
10,961,012

 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
 
 
 
 
 
 

Investment in and advances to unconsolidated affiliates
$
102

 
$
—

 
$
—

 
$
88,296

 
$
60,514

 
$
148,912

Total assets (1)
$
921,044

 
$
169,255

 
$
625,019

 
$
970,809

 
$
2,548,685

 
$
5,234,812

 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Investment in and advances to unconsolidated affiliates
$
76

 
$
—

 
$
—

 
$
93,768

 
$
62,332

 
$
156,176

Total assets (1)
$
973,423

 
$
121,619

 
$
718,457

 
$
991,759

 
$
2,169,226

 
$
4,974,484

(1)
Total assets of the Other category includes the carrying amount of the real estate assets under the Master Leases.