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Leases (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Other Information and Supplemental Cash Flow Information Related to Leases

Total monthly variable expenses were as follows:


	For the year ended December 31,
(in millions)	2022		2021
Variable expenses included in “General and administrative”	$	1.2	$	18.7
Variable expenses included in “Interest expense, net”	36.4		17.1
Total variable expenses	$	37.6	$	35.8

Information related to lease term and discount rate was as follows:


	December 31,
	2023		2022
Weighted-Average Remaining Lease Term
Operating leases	11.2 years		19.1 years
Finance leases	27.3 years		26.7 years
Financing obligations	27.6 years		27.5 years

Weighted-Average Discount Rate
Operating leases	7.7	%	5.8	%
Finance leases	5.2	%	5.2	%
Financing obligations	5.2	%	7.7	%

The components of lease expense were as follows:


	Location on Consolidated Statements of Operations	For the year ended December 31,
(in millions)		2023		2022		2021
Operating Lease Costs
Rent expense associated with triple net operating leases (1)	General and administrative	$	591.1	$	149.6	$	454.4
Operating lease cost (2)	Primarily General and administrative	22.4		19.7		16.6
Short-term lease cost	Primarily Gaming expense	81.2		74.6		64.9
Variable lease cost (2)	Primarily Gaming expense	3.6		4.3		4.3
Total		$	698.3	$	248.2	$	540.2

Finance Lease Costs
Interest on lease liabilities (3)	Interest expense, net	$	110.6	$	258.4	$	17.2
Amortization of ROU assets (3)	Depreciation and amortization	87.5		181.6		10.6
Total		$	198.1	$	440.0	$	27.8

Financing Obligation Costs
Interest on financing obligations (4)	Interest expense, net	$	146.6	$	347.0	$	416.9

(1)For the year ended December 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 year ended December 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).

For the year ended December 31, 2021, pertains to the operating lease components contained within the (i) PENN Master Lease (specific to the land, inclusive of the variable expense associated with Columbus and Toledo); (ii) Pinnacle Master Lease (specific to the land); (iii) Meadows Lease; (iv) Margaritaville Lease; (v) Greektown Lease; and (vi) Tropicana Lease.

(2)Excludes the operating lease costs and variable lease costs pertaining to our triple net leases with our REIT landlords classified as operating leases, discussed in footnote (1) above.

(3)For the year ended December 31, 2023, pertains to the finance lease components associated with the Pinnacle Master Lease (land).

For the year ended December 31, 2022, pertains to the finance lease components associated with the (i) PENN Master Lease; (ii) Pinnacle Master Lease; and (iii) Perryville Lease. The finance lease components contained within the PENN Master Lease and the Pinnacle Master Lease primarily consisted of the land, inclusive of the variable expense associated with Columbus and Toledo.

For the year ended December 31, 2021, pertains to the finance lease components associated with the (i) PENN Master Lease; and (ii) Perryville Lease (effective July 1, 2021). The finance lease components contained within the PENN Master Lease consisted of the land and building components associated with the operations of Dayton and Mahoning Valley.

(4) For the year ended December 31, 2023, pertains to the components contained within the Pinnacle Master Lease (buildings) and the Morgantown Lease.

For the years ended December 31, 2022 and 2021, pertains to the components contained within the (i) PENN Master Lease (primarily buildings) inclusive of the variable expense associated with Columbus and Toledo for the financing obligation components; (ii) Pinnacle Master Lease (buildings); and (iii) Morgantown Lease.

Supplemental cash flow information related to leases was as follows:


	For the year ended December 31,
(in millions)	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	110.6	$	258.4	$	17.2
Operating cash flows from operating leases	$	609.9	$	163.2	$	428.3
Financing cash flows from finance leases	$	47.1	$	110.5	$	8.5

Non-cash lease activities:
Commencement of operating leases	$	3,820.4	$	58.5	$	96.4
Derecognition of operating lease liabilities	$	307.7	$	—	$	—
Commencement of finance leases	$	33.3	$	1,462.1	$	106.1
Derecognition of finance lease liabilities	$	2,933.6	$	—	$	—
Derecognition of finance obligations	$	1,567.8	$	—	$	—

Total payments made under the Triple Net Leases were as follows:


	For the year ended December 31,
(in millions)	2023		2022		2021
AR PENN Master Lease	$	284.1	$	—	$	—
2023 Master Lease	232.8		—		—
PENN Master Lease	—		480.3		475.7
Pinnacle Master Lease	339.4		334.1		328.3
Perryville Lease	—		7.8		3.9
Meadows Lease	—		24.6		24.9
Margaritaville Lease	26.2		23.8		23.5
Greektown Lease	52.2		51.3		53.1
Morgantown Lease	3.1		3.1		3.0
Total (1)	$	937.8	$	925.0	$	912.4

(1)For the years ended December 31, 2022 and 2021, rent payable under the Tropicana Lease was nominal. Therefore, it has been excluded from the table above. The Tropicana Lease was terminated on September 26, 2022.

The classification of lease ROU assets was as follows:


	December 31,
(in millions)	2023		2022
Lease ROU assets
Operating leases	$	4,264.7	$	1,068.4
Finance leases	2,041.0		5,034.9
Total	$	6,305.7	$	6,103.3

Schedule of Future Minimum Lease Commitments, Operating Leases

The following is a maturity analysis of our operating leases, finance leases, and financing obligations as of December 31, 2023:


(in millions)	Operating Leases		Finance Leases		Financing Obligations
Years ending December 31:
2024	$	617.9	$	149.3	$	166.5
2025	611.1		144.7		166.5
2026	611.8		144.7		166.6
2027	614.5		144.6		166.5
2028	613.6		144.6		166.6
Thereafter	3,318.6		3,222.4		3,829.5
Total lease payments	6,387.5		3,950.3		4,662.2
Less: Imputed interest	(2,141.1)		(1,847.5)		(2,234.8)
Present value of future lease payments	4,246.4		2,102.8		2,427.4
Less: Current portion of lease obligations	(302.3)		(40.3)		(41.3)
Long-term portion of lease obligations	$	3,944.1	$	2,062.5	$	2,386.1

Schedule of Future Minimum Lease Commitments, Finance Leases

The following is a maturity analysis of our operating leases, finance leases, and financing obligations as of December 31, 2023:


(in millions)	Operating Leases		Finance Leases		Financing Obligations
Years ending December 31:
2024	$	617.9	$	149.3	$	166.5
2025	611.1		144.7		166.5
2026	611.8		144.7		166.6
2027	614.5		144.6		166.5
2028	613.6		144.6		166.6
Thereafter	3,318.6		3,222.4		3,829.5
Total lease payments	6,387.5		3,950.3		4,662.2
Less: Imputed interest	(2,141.1)		(1,847.5)		(2,234.8)
Present value of future lease payments	4,246.4		2,102.8		2,427.4
Less: Current portion of lease obligations	(302.3)		(40.3)		(41.3)
Long-term portion of lease obligations	$	3,944.1	$	2,062.5	$	2,386.1

Schedule of Future Minimum Lease Commitments, Financing Obligations

The following is a maturity analysis of our operating leases, finance leases, and financing obligations as of December 31, 2023:


(in millions)	Operating Leases		Finance Leases		Financing Obligations
Years ending December 31:
2024	$	617.9	$	149.3	$	166.5
2025	611.1		144.7		166.5
2026	611.8		144.7		166.6
2027	614.5		144.6		166.5
2028	613.6		144.6		166.6
Thereafter	3,318.6		3,222.4		3,829.5
Total lease payments	6,387.5		3,950.3		4,662.2
Less: Imputed interest	(2,141.1)		(1,847.5)		(2,234.8)
Present value of future lease payments	4,246.4		2,102.8		2,427.4
Less: Current portion of lease obligations	(302.3)		(40.3)		(41.3)
Long-term portion of lease obligations	$	3,944.1	$	2,062.5	$	2,386.1