Restatement (Tables)

12 Months Ended

Dec. 31, 2014

Restatement

Summary of effects of the restatement on the Company's consolidated balance sheets , consolidated statements of operations, and consolidated statements of cash flows

(in thousands, except share and per share data)

        The following table presents the consolidated balance sheet as previously reported, restatement adjustments (including the retroactive application of revised guidance on the presentation of debt issuance costs) and the consolidated balance sheet as restated at December 31, 2014:

	As Previously Reported			Restatement Adjustments			As Restated
Assets
Current assets
Cash and cash equivalents	$	208,673		$	—		$	208,673
Receivables, net of allowance for doubtful accounts of $2,004		41,618			—			41,618
Prepaid expenses		68,947			1,838			70,785
Deferred income taxes		55,579			(15,236	)		40,343
Other current assets		11,189			—			11,189
Total current assets		386,006			(13,398	)		372,608
Property and equipment, net		769,145			1,900,587			2,669,732
Other assets
Investment in and advances to unconsolidated affiliates		179,551			—			179,551
Goodwill		277,582			596,602			874,184
Other intangible assets, net		370,562			48,891			419,453
Debt issuance costs, net of accumulated amortization of $6,796		25,151			(25,151	)		—
Deferred income taxes		79,067			(79,067	)		—
Other assets		149,366			—			149,366
Total other assets		1,081,279			541,275			1,622,554
Total assets	$	2,236,430		$	2,428,464		$	4,664,894
Liabilities
Current liabilities
Current portion of financing obligation to GLPI	$	—		$	46,884		$	46,884
Current maturities of long-term debt		30,853			—			30,853
Accounts payable		43,136			—			43,136
Accrued expenses		130,818			2,274			133,092
Accrued interest		5,163			—			5,163
Accrued salaries and wages		84,034			—			84,034
Gaming, pari-mutuel, property, and other taxes		52,132			(160	)		51,972
Insurance financing		13,680			—			13,680
Other current liabilities		75,703			70			75,773
Total current liabilities		435,519			49,068			484,587
Long-term liabilities
Long-term financing obligation to GLPI, net of current portion		—			3,564,629			3,564,629
Long-term debt, net of current maturities and debt issuance costs		1,229,979			(19,402	)		1,210,577
Deferred income taxes		—			78,633			78,633
Noncurrent tax liabilities		8,188			(1,153	)		7,035
Other noncurrent liabilities		8,258			19,189			27,447
Total long-term liabilities		1,246,425			3,641,896			4,888,321
Shareholders' equity (deficit)
Series B Preferred stock ($.01 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at December 31, 2014)		—			—			—
Series C Preferred stock ($.01 par value, 18,500 shares authorized, 8,624 shares issued and outstanding at December 31, 2014)		—			—			—
Common stock ($.01 par value, 200,000,000 shares authorized, 81,329,210 shares issued and 79,161,817 shares outstanding, at December 31, 2014)		786			27			813
Treasury stock, at cost (2,167,393 shares held at December 31, 2014)		—			(28,414	)		(28,414	)
Additional paid-in capital		918,370			37,776			956,146
Retained deficit		(363,388	)		(1,271,889	)		(1,635,277	)
Accumulated other comprehensive (loss) income		(1,282	)		—			(1,282	)
Total shareholders' equity (deficit)		554,486			(1,262,500	)		(708,014	)
Total liabilities and shareholders' equity (deficit)	$	2,236,430		$	2,428,464		$	4,664,894

        The following table presents the consolidated balance sheet as previously reported, restatement adjustments (including the retroactive application of revised guidance on the presentation of debt issuance costs) and the consolidated balance sheet as restated at December 31, 2013:

	As Previously Reported			Restatement Adjustments			As Restated
Assets
Current assets
Cash and cash equivalents	$	292,995					$	292,995
Receivables, net of allowance for doubtful accounts of $2,752		52,538						52,538
Prepaid expenses		62,724			(9,579	)		53,145
Deferred income taxes		71,093			(29,679	)		41,414
Other current assets		29,511			10			29,521
Total current assets		508,861			(39,248	)		469,613
Property and equipment, net		497,457			2,019,423			2,516,880
Other assets
Investment in and advances to unconsolidated affiliates		193,331						193,331
Goodwill		492,398			459,555			951,953
Other intangible assets, net		359,648			(125,390	)		234,258
Debt issuance costs, net of accumulated amortization of $922		30,734			(30,734	)		—
Other assets		101,562			(10	)		101,552
Total other assets		1,177,673			303,421			1,481,094
Total assets	$	2,183,991		$	2,283,596		$	4,467,587
Liabilities
Current liabilities
Current portion of financing obligation to GLPI	$	—		$	42,016		$	42,016
Current maturities of long-term debt		27,598						27,598
Accounts payable		22,580						22,580
Accrued expenses		98,009			4,595			102,604
Accrued interest		5,027						5,027
Accrued salaries and wages		86,498			66			86,564
Gaming, pari-mutuel, property, and other taxes		52,053			(37	)		52,016
Insurance financing		3,020						3,020
Other current liabilities		66,684			340			67,024
Total current liabilities		361,469			46,980			408,449
Long-term liabilities
Long-term financing obligation to GLPI, net of current portion		—			3,492,793			3,492,793
Long-term debt, net of current maturities and debt issuance costs		1,023,194			(5,797	)		1,017,397
Deferred income taxes		13,912			57,240			71,152
Noncurrent tax liabilities		19,966			1,598			21,564
Other noncurrent liabilities		7,050			34			7,084
Total long-term liabilities		1,064,122			3,545,868			4,609,990
Shareholders' equity (deficit)
Series B Preferred stock ($.01 par value, 1,000,000 shares authorized, 0 shares issued and outstanding at December 31, 2013)		—						—
Series C Preferred stock ($.01 par value, 18,500 shares authorized, 8,624 shares issued and outstanding at December 31, 2013)		—						—
Common stock ($.01 par value, 200,000,000 shares authorized, 79,955,786 shares issued and 77,788,393 shares outstanding, at December 31, 2013)		775			24			799
Treasury stock, at cost (2,167,393 shares held at December 31, 2013)		—			(28,414	)		(28,414	)
Additional paid-in capital		887,556			37,779			925,335
Retained deficit		(130,314	)		(1,318,641	)		(1,448,955	)
Accumulated other comprehensive (loss) income		383						383
Total shareholders' equity (deficit)		758,400			(1,309,252	)		(550,852	)
Total liabilities and shareholders' equity (deficit)	$	2,183,991		$	2,283,596		$	4,467,587

        The following table presents the consolidated statement of operations as previously reported, restatement adjustments and the consolidated statement of operations as restated for the year ended December 31, 2014:

	As Previously Reported			Restatement Adjustments			As Restated
Revenues
Gaming	$	2,297,175		$	—		$	2,297,175
Food, beverage and other		432,021			—			432,021
Management service fee		11,650			—			11,650
Revenues		2,740,846			—			2,740,846
Less promotional allowances		(150,319	)		—			(150,319	)
Net revenues		2,590,527			—			2,590,527
Operating expenses
Gaming expense		1,148,968			(2,809	)		1,146,159
Food, beverage and other		319,792			—			319,792
General and administrative		446,405			31			446,436
Rental expense related to Master Lease		421,388			(421,388	)		—
Depreciation and amortization		178,981			87,761			266,742
Impairment losses		321,089			(161,205	)		159,884
Insurance recoveries, net of deductible charges		(5,674	)		—			(5,674	)
Total operating expenses		2,830,949			(497,610	)		2,333,339
(Loss) income from operations		(240,422	)		497,610			257,188
Other income (expenses)
Interest expense		(45,982	)		(379,132	)		(425,114	)
Interest income		3,730			—			3,730
Income from unconsolidated affiliates		7,949			—			7,949
Loss on early extinguishment of debt		—			—			—
Other		2,944			—			2,944
Total other expenses		(31,359	)		(379,132	)		(410,491	)
(Loss) income from operations before income taxes		(271,781	)		118,478			(153,303	)
Income tax (benefit) provision		(38,586	)		69,105			30,519
Net (loss) income	$	(233,195	)	$	49,373		$	(183,822	)
(Loss) earnings per common share:
Basic (loss) earnings per common share	$	(2.97	)	$	0.63		$	(2.34	)
Diluted (loss) earnings per common share	$	(2.97	)	$	0.63		$	(2.34	)

        The following table presents the consolidated statement of operations as previously reported, adjustments to properly present discontinued operations, other restatement adjustments and the consolidated statement of operations as restated for the year ended December 31, 2013:

	As Previously Reported			Discontinued Operations			Restatement Adjustments			As Restated
Revenues
Gaming	$	2,615,169		$	(135,568	)	$	—		$	2,479,601
Food, beverage and other		461,048			(10,480	)		—			450,568
Management service fee		13,176						—			13,176
Revenues		3,089,393			(146,048	)		—			2,943,345
Less promotional allowances		(170,639	)		5,180			—			(165,459	)
Net revenues		2,918,754			(140,868	)		—			2,777,886
Operating expenses
Gaming expense		1,318,546			(76,031	)		5,000			1,247,515
Food, beverage and other		345,345			(9,066	)		—			336,279
General and administrative		526,482			(20,367	)		10,028			516,143
Rental expense related to Master Lease		69,502			—			(69,502	)		—
Depreciation and amortization		298,326			(11,892	)		16,970			303,404
Impairment losses		1,132,417			—			(334,112	)		798,305
Insurance recoveries, net of deductible charges		108			—			—			108
Total operating expenses		3,690,726			(117,356	)		(371,616	)		3,201,754
(Loss) from operations		(771,972	)		(23,512	)		371,616			(423,868	)
Other income (expenses)
Interest expense		(97,092	)		—			(62,805	)		(159,897	)
Interest income		1,387			—			—			1,387
Income from unconsolidated affiliates		9,657			—			—			9,657
Loss on early extinguishment of debt		(61,660	)		—			—			(61,660	)
Other		3,803			4,201			—			8,004
Total other expenses		(143,905	)		4,201			(62,805	)		(202,509	)
(Loss) from continuing operations before income taxes		(915,877	)		(19,311	)		308,811			(626,377	)
Income tax (benefit)		(121,538	)		(7,766	)		95,724			(33,580	)
Net (loss) from continuing operations		(794,339	)		(11,545	)		213,087			(592,797	)
Income from discontinued operations, net of tax		—			11,545			—			11,545
Net (loss) income	$	(794,339	)	$	—		$	213,087		$	(581,252	)
Basis (loss) earnings per share—continuing operations	$	(10.17	)	$	(0.15	)	$	2.73		$	(7.59	)
Basis earnings per share—discontinued operations	$	—		$	0.15		$	—		$	0.15
Basic (loss) earnings per share	$	(10.17	)	$	—		$	2.73		$	(7.44	)
Diluted (loss) earnings per share—continuing operations	$	(10.17	)	$	(0.15	)	$	2.73		$	(7.59	)
Diluted earnings per share—discontinued operations	$	—		$	0.15		$	—		$	0.15
Diluted (loss) earnings per share	$	(10.17	)	$	—		$	2.73		$	(7.44	)

        The following table presents the consolidated statement of operations as previously reported, adjustments to properly present discontinued operations, other restatement adjustments and the consolidated statement of operations as restated for the year ended December 31, 2012:

	As Previously Reported			Discontinued Operations			Restatement Adjustments			As Restated
Revenues
Gaming	$	2,590,533		$	(202,581	)	$	—		$	2,387,952
Food, beverage and other		438,837			(15,635	)		—			423,202
Management service fee		14,835						—			14,835
Revenues		3,044,205			(218,216	)		—			2,825,989
Less promotional allowances		(144,740	)		7,573						(137,167	)
Net revenues		2,899,465			(210,643	)		—			2,688,822
Operating expenses
Gaming expense		1,342,905			(113,111	)		—			1,229,794
Food, beverage and other		343,611			(13,114	)		—			330,497
General and administrative		532,241			(26,660	)		(684	)		504,897
Rental expense related to Master Lease		—			—			—			—
Depreciation and amortization		245,348			(14,090	)		2,149			233,407
Impairment losses		—			—			—			—
Insurance recoveries, net of deductible charges		(7,229	)		—			—			(7,229	)
Total operating expenses		2,456,876			(166,975	)		1,465			2,291,366
Income from operations		442,589			(43,668	)		(1,465	)		397,456
Other income (expenses)
Interest expense		(81,440	)		—			(684	)		(82,124	)
Interest income		948			(2	)		—			946
Income from unconsolidated affiliates		3,804			—			—			3,804
Loss on early extinguishment of debt		—			—			—			—
Other		(1,375	)		6,320			—			4,945
Total other expenses		(78,063	)		6,318			(684	)		(72,429	)
Income from continuing operations before income taxes		364,526			(37,350	)		(2,149	)		325,027
Income tax provision		152,555			(14,431	)		(675	)		137,449
Net income from continuing operations		211,971			(22,919	)		(1,474	)		187,578
Income from discontinued operations, net of tax		—			22,919			—			22,919
Net income	$	211,971		$	—		$	(1,474	)	$	210,497
Basis earnings per share—continuing operations	$	2.24		$	(0.24	)	$	(0.02	)	$	1.98
Basis earnings per share—discontinued operations	$	—		$	0.24		$	—		$	0.24
Basic earnings per share	$	2.24		$	—		$	(0.02	)	$	2.22
Diluted earnings per share—continuing operations	$	2.04		$	(0.22	)	$	(0.01	)	$	1.81
Diluted earnings per share—discontinued operations	$	—		$	0.22		$	—		$	0.22
Diluted earnings per share	$	2.04		$	—		$	(0.01	)	$	2.03

        The following table presents the consolidated statement of cash flows as previously reported, restatement adjustments and the consolidated statement of cash flows as restated for the year ended December 31, 2014:

	As Previously Reported			Restatement Adjustments			As Restated
Year Ended December 31, 2014:
Operating activities
Net (loss) income	$	(233,195	)	$	49,373		$	(183,822	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		178,981			87,761			266,742
Amortization of items charged to interest expense		6,040			—			6,040
Accretion of settlement value other non-current liabilities		689			—			689
Loss on sale of fixed assets		738			—			738
Income from unconsolidated affiliates		(7,949	)		—			(7,949	)
Distributions of earnings from unconsolidated affiliates		23,000			—			23,000
Deferred income taxes		(72,278	)		75,186			2,908
Charge for stock-based compensation		10,666			—			10,666
Impairment losses and write downs		324,389			(161,205	)		163,184
Decrease (increase), net of businesses acquired
Accounts receivable		10,046			—			10,046
Prepaid expenses and other current assets		(13,315	)		10			(13,305	)
Other assets		150			(9	)		141
Increase (decrease), net of businesses acquired
Accounts payable		2,028			—			2,028
Accrued expenses		(17,191	)		(2,321	)		(19,512	)
Accrued interest		136			—			136
Accrued salaries and wages		(2,464	)		(66	)		(2,530	)
Gaming, pari-mutuel, property and other taxes		79			(123	)		(44	)
Income taxes		8,522			(3,329	)		5,193
Other current and noncurrent liabilities		10,227			(304	)		9,923
Other noncurrent tax liabilities		(9,298	)		(2,751	)		(12,049	)
Net cash provided by operating activities		220,001			42,222			262,223
Investing activities
Capital project expenditures, net of reimbursements		(144,707	)		—			(144,707	)
Capital maintenance expenditures		(83,438	)		—			(83,438	)
Advances to Jamul Tribe		(47,093	)		—			(47,093	)
Proceeds from sale of property and equipment		1,665			—			1,665
Investment in joint ventures		(1,285	)		—			(1,285	)
Decrease in cash in escrow		18,000			—			18,000
Acquisitions of businesses and gaming and other licenses, net of cash acquired		(118,678	)		—			(118,678	)
Net cash used in investing activities		(375,536	)		—			(375,536	)
Financing activities
Proceeds from exercise of options		9,799			—			9,799
Principal payments on financing obligation with GLPI		—			(42,222	)		(42,222	)
Proceeds from issuance of long-term debt, net of issuance costs		104,935			—			104,935
Principal payments on long-term debt		(49,541	)		—			(49,541	)
Payments of other long-term obligations		(15,000	)		—			(15,000	)
Proceeds from insurance financing		28,888			—			28,888
Payments on insurance financing		(18,228	)		—			(18,228	)
Tax benefit from stock options exercised		10,360			—			10,360
Net cash provided by (used in) financing activities		71,213			(42,222	)		28,991
Net decrease in cash and cash equivalents		(84,322	)		—			(84,322	)
Cash and cash equivalents at beginning of year		292,995			—			292,995
Cash and cash equivalents at end of year	$	208,673		$	—		$	208,673
Supplemental disclosure
Interest expense paid, net of amounts capitalized	$	39,101		$	379,443		$	418,544
Income taxes paid	$	23,185		$	—		$	23,185

        The following table presents the consolidated statement of cash flows as previously reported, restatement adjustments and the consolidated statement of cash flows as restated for the year ended December 31, 2013:

	As Previously Reported			Restatement Adjustments			As Restated
Year Ended December 31, 2013:
Operating activities
Net (loss) income	$	(794,339	)	$	213,087		$	(581,252	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		298,326			16,971			315,297
Amortization of items charged to interest expense		8,112			—			8,112
Accretion of settlement values on long term obligations		5,024			—			5,024
Transaction cost for Carlino exchange		—			10,695			10,695
Loss on sale of fixed assets		3,652			—			3,652
Income from unconsolidated affiliates		(9,657	)		—			(9,657	)
Distributions of earnings from unconsolidated affiliates		21,500			—			21,500
Loss on early extinguishment of debt		26,782			—			26,782
Deferred income taxes		(224,983	)		87,587			(137,396	)
Charge for stock-based compensation		22,809			—			22,809
Impairment losses		1,132,417			(334,112	)		798,305
Gain on investment in corporate debt securities		(1,516	)		—			(1,516	)
Gain on sale of Bullwhackers		(444	)		—			(444	)
Decrease (increase), net of businesses acquired
Accounts receivable		5,034			—			5,034
Prepaid expenses and other current assets		912			(126	)		786
Other assets		(42,567	)		5,611			(36,956	)
(Decrease) increase, net of businesses acquired
Accounts payable		(2,175	)		—			(2,175	)
Accrued expenses		(30,147	)		4,596			(25,551	)
Accrued interest		(15,030	)		—			(15,030	)
Accrued salaries and wages		(2,383	)		66			(2,317	)
Gaming, pari-mutuel, property and other taxes		(1,555	)		(37	)		(1,592	)
Income taxes		29,058			6,655			35,713
Other current and noncurrent liabilities		10,576			374			10,950
Other noncurrent tax liabilities		1,396			1,598			2,994
Net cash provided by operating activities		440,802			12,965			453,767
Investing activities
Capital project expenditures, net of reimbursements		(119,051	)		—			(119,051	)
Capital maintenance expenditures		(80,862	)		—			(80,862	)
Advances to Jamul Tribe		—			(5,602	)		(5,602	)
Proceeds from sale of property and equipment		3,837			—			3,837
Proceeds from investment in corporate debt securities		6,870			—			6,870
Proceeds related to damaged property and equipment		2,203			—			2,203
Proceeds from sale of Bullwhackers, net of cash on hand		4,996			—			4,996
Investment in joint ventures		(675	)		—			(675	)
Cash contributed to GLPI in connection with Spin-Off		(240,202	)		240,202			—
Decrease in cash in escrow		8,000			—			8,000
Acquisitions of businesses and gaming licenses		(73	)		—			(73	)
Net cash (used in) provided by investing activities		(414,957	)		234,600			(180,357	)
Financing activities
Proceeds from exercise of options		51,535			—			51,535
Repurchase of preferred stock		(649,518	)		—			(649,518	)
Cash contributed to GLPI in connection with Spin-Off		—			(240,202	)		(240,202	)
Principal payments on financing obligation with GLPI		—			(7,363	)		(7,363	)
Proceeds from issuance of long-term debt, net of issuance costs		4,745,790			—			4,745,790
Principal payments on long-term debt		(4,135,059	)		—			(4,135,059	)
Payments of other long-term obligations		(16,000	)		—			(16,000	)
Proceeds from insurance financing		19,233			—			19,233
Payments on insurance financing		(20,069	)		—			(20,069	)
Tax benefit from stock options exercised		10,771			—			10,771
Net cash provided by (used in) financing activities		6,683			(247,565	)		(240,882	)
Net increase in cash and cash equivalents		32,528			—			32,528
Cash and cash equivalents at beginning of year		260,467			—			260,467
Cash and cash equivalents at end of year	$	292,995		$	—		$	292,995
Supplemental disclosure
Interest expense paid, net of amounts capitalized	$	104,351		$	62,806		$	167,157
Income taxes paid	$	69,758		$	—		$	69,758

        The following table presents the consolidated statement of cash flows as previously reported, restatement adjustments and the consolidated statement of cash flows as restated for the year ended December 31, 2012:

	As Previously Reported			Restatement Adjustments			As Restated
Operating activities
Net (loss) income	$	211,971		$	(1,474	)	$	210,497
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		245,348			2,149			247,497
Amortization of items charged to interest expense		6,898			—			6,898
Loss (gain) on sale of fixed assets		(1,690	)		—			(1,690	)
Income from unconsolidated affiliates		(3,804	)		—			(3,804	)
Distributions of earnings from unconsolidated affiliates		9,400			—			9,400
Deferred income taxes		44,983			(594	)		44,389
Charge for stock-based compensation		28,609			—			28,609
Decrease (increase), net of businesses acquired
Accounts receivable		1,887			—			1,887
Insurance receivable		1,072			—			1,072
Prepaid expenses and other current assets		14,445			—			14,445
Other assets		(12,331	)		—			(12,331	)
Increase (decrease), net of businesses acquired
Accounts payable		1,334			—			1,334
Accrued expenses		12,770			—			12,770
Accrued interest		3,925			—			3,925
Accrued salaries and wages		10,285			—			10,285
Gaming, pari-mutuel, property and other taxes		6,051			—			6,051
Income taxes		(70,721	)		(81	)		(70,802	)
Other current and noncurrent liabilities		12,903			—			12,903
Other noncurrent tax liabilities		(16,146	)		—			(16,146	)
Net cash provided by operating activities		507,189			—			507,189
Investing activities
Capital project expenditures, net of reimbursements		(386,344	)		—			(386,344	)
Capital maintenance expenditures		(86,641	)		—			(86,641	)
Proceeds from sale of property and equipment		5,323			—			5,323
Investment in joint ventures		(36,000	)		—			(36,000	)
Decrease in cash in escrow		24,625			—			24,625
Acquisitions of businesses and gaming and other licenses, net of cash acquired		(709,450	)		—			(709,450	)
Net cash used in investing activities		(1,188,487	)		—			(1,188,487	)
Financing activities
Proceeds from exercise of options		31,933			—			31,933
Proceeds from issuance of long-term debt, net of issuance costs		1,162,709			—			1,162,709
Principal payments on long-term debt		(494,891	)		—			(494,891	)
Proceeds from other long-term obligations		10,000			—			10,000
Proceeds from insurance financing		4,746			—			4,746
Payments on insurance financing		(17,253	)		—			(17,253	)
Tax benefit from stock options exercised		6,081			—			6,081
Net cash provided by financing activities		703,325			—			703,325
Net (decrease) increase in cash and cash equivalents		22,027			—			22,027
Cash and cash equivalents at beginning of year		238,440			—			238,440
Cash and cash equivalents at end of year	$	260,467		$	—		$	260,467
Supplemental disclosure
Interest expense paid, net of amounts capitalized	$	70,239		$	684		$	70,923
Income taxes paid	$	187,515		$	—		$	187,515