Hurricane Laura

12 Months Ended

Dec. 31, 2021

Unusual or Infrequent Items, or Both [Abstract]

Hurricane Laura

Note 4—Hurricane Laura

On August 27, 2020, Hurricane Laura made landfall in Lake Charles, Louisiana, which caused significant damage to our L’Auberge Lake Charles property and closure of the property for approximately two weeks. The Company maintains insurance, subject to certain deductibles and coinsurance, for the repair or replacement of assets that suffered loss and provides coverage for interruption to our business, including lost profits.

The Company recorded a receivable relating to our estimate of repairs and maintenance costs which have been incurred and property and equipment which have been written off, and for which we deem the recovery of such costs and property and

equipment from our insurers to be probable. The insurance recovery receivable is included in “Accounts Receivable, net” within the Consolidated Balance Sheets. As we deem it is probable that the proceeds to be recovered from our insurers exceeds the total of our insurance recovery recorded and our insurers’ deductible and coinsurance, we did not record any loss associated with the impact of this natural disaster. Timing differences are likely to exist between the recognition of (i) impairment losses and capital expenditures made to repair or restore the assets and (ii) the receipt of insurance proceeds within the Consolidated Financial Statements.

As of December 31, 2021 and 2020, the amount of the receivable was $28.7 million and $23.0 million, respectively. No proceeds were received from our insurers during the year ended December 31, 2021, as compared to $47.5 million received during the year ended December 31, 2020. For the year ended December 31, 2021, we identified an additional $5.7 million of costs related to our policy claim. We continue to be in the process of quantifying the claim amount under the policies to be submitted to our insurers.

We will record proceeds in excess of the recognized losses and lost profits under our business interruption insurance as a gain contingency in accordance with ASC 450, “Contingencies,” which we expect to recognize at the time of final settlement or when nonrefundable cash advances are made in a period subsequent to December 31, 2021.

During the first quarter of 2022, the Company received insurance payments totaling $35.6 million.

The following table summarizes the financial impact of Hurricane Laura related matters:

	December 31,
(in millions)	2021		2020
Insurance proceeds received through the end of the period	$	47.5	$	47.5
Deductible	$	15.0	$	15.0
Coinsurance	$	2.5	$	2.5
Clean-up, restoration, and other costs	$	52.8	$	47.1
Fixed asset write-off	$	23.2	$	23.2
Inventory write-off	$	0.2	$	0.2
Insurance receivable	$	28.7	$	23.0