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Segment Information
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
We have aggregated our operating segments into five reportable segments. Retail operating segments are based on the similar characteristics within the regions in which they operate: Northeast, South, West, and Midwest. Our Interactive segment includes all of our online sports betting, iCasino and social gaming operations, management of retail sports betting, media, and the operating results of Barstool (the remaining 64% of Barstool common stock, not already owned by PENN, was acquired on February 17, 2023). The Other category is included in the following tables to reconcile the segment information to the consolidated 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 on a consolidated basis to net income.
 For the three months ended March 31,
(in millions)20232022
Revenues:
Northeast segment$700.5 $658.5 
South segment314.8 341.4 
West segment129.7 140.9 
Midwest segment295.3 282.9 
Interactive segment233.5 141.5 
Other (1)
5.8 7.3 
Intersegment eliminations (2)
(6.3)(8.3)
Total$1,673.3 $1,564.2 
Adjusted EBITDAR (3):
Northeast segment$212.9 $205.2 
South segment123.6 146.5 
West segment49.1 51.2 
Midwest segment 125.6 125.5 
Interactive segment(5.7)(10.0)
Other (1)
(27.3)(23.7)
Total (3)
478.2 494.7 
Other operating benefits (costs) and other income (expenses):
Rent expense associated with triple net operating leases (4)
(146.0)(60.1)
Stock-based compensation(16.5)(17.0)
Cash-settled stock-based awards variance2.9 2.9 
Gain on disposal of assets— 0.1 
Contingent purchase price(0.3)0.1 
Pre-opening expenses— (1.5)
Depreciation and amortization(107.5)(118.2)
Insurance recoveries, net of deductible charges— 8.8 
Non-operating items of equity method investments (5)
(4.5)(1.8)
Interest expense, net(113.0)(161.3)
Interest income10.4 0.5 
Gain on Barstool Acquisition, net (6)
83.4 — 
Gain on REIT transactions, net (7)
500.8 — 
Other (8)
(5.6)(48.0)
Income before income taxes682.3 99.2 
Income tax expense(167.9)(47.6)
Net income$514.4 $51.6 
(1)The Other category consists of the Company’s stand-alone racing operations, namely Sanford-Orlando Kennel Club, Sam Houston and Valley Race Parks, the Company’s joint venture interests in Freehold Raceway, and our management contract for Retama Park Racetrack. 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 or have not otherwise been allocated.
(2)Primarily represents the elimination of intersegment revenues associated with our retail sportsbooks, which are operated by PENN Interactive.
(3)We define Adjusted EBITDAR as earnings before interest expense, net, interest income, income taxes, depreciation and amortization, rent expense associated with triple net operating leases (see footnote (4) below), stock-based compensation, debt extinguishment charges, impairment losses, insurance recoveries, net of 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 expenses, and other. Adjusted EBITDAR is also inclusive of income or loss from unconsolidated affiliates, with our share of non-operating items (see footnote (5) below) added
back for Barstool and our Kansas Entertainment joint venture. Adjusted EBITDAR excludes (i) non-cash gains/losses associated with REIT transactions (including our transactions with GLPI entered into on February 21, 2023 as described in Note 9, “Leases”); and (ii) non-cash gains/losses associated with partial and step acquisitions as measured in accordance with ASC 805 “Business Combinations”(including the Barstool Acquisition).
(4)For the three months ended March 31, 2023, pertains to the following operating leases: (i) AR PENN Master Lease; (ii) 2023 Master Lease; (iii) Margaritaville Lease; and (iv) Greektown Lease.
For the three months ended March 31, 2022, pertains to the operating lease components contained within the (i) PENN Master Lease (specific to the land and building components associated with the operations of Dayton and Mahoning Valley); (ii) Meadows Lease; (iii) Margaritaville Lease; (iv) Greektown Lease; and (v) Tropicana Lease (which terminated on September 26, 2022).
(5)Consists principally of interest expense, net, income taxes, depreciation and amortization, and stock-based compensation expense associated with Barstool prior to us acquiring the remaining 64% of Barstool common stock (see Note 6, “Acquisitions”) and our Kansas Entertainment joint venture.
(6)Includes a gain of $66.5 million associated with Barstool related to remeasurement of the equity investment immediately prior to the acquisition date of February 17, 2023 and a gain of $16.9 million related to the acquisition of the remaining 64% of Barstool common stock (see Note 6, “Acquisitions”).
(7)Upon the execution of the February 21, 2023 AR PENN Master Lease and the 2023 Master Lease, both effective January 1, 2023, we recognized a gain of $500.8 million as a result of the reclassification and remeasurement of lease components (see Note 9, “Leases”).
(8)Primarily relates to unrealized holding losses on our equity securities of $3.2 million and $38.7 million for the three months ended March 31, 2023 and 2022, respectively, which are discussed in Note 15, “Fair Value Measurements.”
The table below presents capital expenditures by segment:
 For the three months ended March 31,
(in millions)20232022
Capital expenditures:
Northeast segment$22.8 $30.6 
South segment13.7 19.7 
West segment3.8 1.8 
Midwest segment12.7 6.8 
Interactive segment7.1 1.1 
Other3.1 5.6 
Total capital expenditures$63.2 $65.6 
The table below presents investment in and advances to unconsolidated affiliates and total assets by segment:
(in millions)NortheastSouthWestMidwestInteractive
Other (1)
Total
Balance sheet as of March 31, 2023
Investment in and advances to unconsolidated affiliates$0.1 $— $— $81.2 $— $5.7 $87.0 
Total assets$1,997.8 $1,220.9 $360.7 $1,241.0 $3,197.7 $9,021.9 $17,040.0 
Balance sheet as of December 31, 2022
Investment in and advances to unconsolidated affiliates$0.1 $— $— $81.5 $160.9 $6.1 $248.6 
Total assets$2,231.8 $1,191.9 $372.4 $1,305.5 $4,233.7 $8,166.8 $17,502.1 
(1)The real estate assets subject to the Master Leases, which are classified as either property and equipment, operating lease ROU assets, or finance lease ROU assets, are included within the Other category.