Segment Information

3 Months Ended

Mar. 31, 2017

Segment Information

Segment Information

7.  Segment Information

During the second quarter of 2016, the Company changed its three reportable segments from East/Midwest, West and Southern Plains to Northeast, South/West, and Midwest in connection with the addition of a new regional vice president and a realignment of responsibilities within the Company’s segments.  Segment information for prior periods has been restated for comparability.  The following tables (in thousands) present certain information with respect to the Company’s segments. Intersegment revenues between the Company’s segments were not material in any of the periods presented below.  The income (loss) from operations by segment presented below does not include allocations for corporate overhead costs or expenses associated with utilizing property subject to the Master Lease.

Three months ended  March 31, 2017	Northeast		South/West		Midwest		Other (1)		Total
Income (loss) from operations	$	102,633	$	27,118	$	61,529	$	(50,993)	$	140,287
Charge for stock compensation		—		—		—		2,173		2,173
Depreciation and amortization		23,023		9,218		9,671		28,324		70,236
Contingent purchase price		904		—		9		1,647		2,560
(Gain) loss on disposal of assets		14		5		(58)		(6)		(45)
Insurance recoveries		—		—		—		—		—
Income (loss) from unconsolidated affiliates		—		—		5,004		(456)		4,548
Non-operating items for Kansas JV		—		—		1,951		—		1,951
Adjusted EBITDA	$	126,574	$	36,341	$	78,106	$	(19,311)	$	221,710
Three months ended  March 31, 2016	Northeast		South/West		Midwest		Other (1)		Total
Income (loss) from operations	$	100,921	$	25,985	$	58,225	$	(44,600)	$	140,531
Charge for stock compensation		—		—		—		1,455		1,455
Depreciation and amortization		22,994		8,764		9,568		24,694		66,020
Contingent purchase price		(1,201)		—		—		—		(1,201)
Loss on disposal of assets		21		(24)		6		(1,104)		(1,101)
Income (loss) from unconsolidated affiliates		—		—		4,718		(109)		4,609
Non-operating items for Kansas JV		—		—		2,570		—		2,570
Adjusted EBITDA	$	122,735	$	34,725	$	75,087	$	(19,664)	$	212,883

		Northeast		South/West		Midwest		Other (1)		Total
	(in thousands)
Three months ended  March 31, 2017
Net revenues	$	393,465	$	139,820	$	228,338	$	14,601	$	776,224
Capital expenditures		3,990		8,622		4,331		213		17,156
Three months ended  March 31, 2016
Net revenues	$	393,205	$	135,968	$	221,078	$	6,200	$	756,451
Capital expenditures		7,119		7,585		5,982		683		21,369
Balance sheet at March 31, 2017
Total assets	$	837,808	$	829,872	$	1,087,737	$	2,191,623	$	4,947,040
Investment in and advances to unconsolidated affiliates		76		—		93,022		61,876		154,974
Goodwill and other intangible assets, net		324,285		224,693		776,347		97,092		1,422,417
Balance sheet at December 31, 2016
Total assets	$	861,951	$	840,076	$	1,103,231	$	2,169,226	$	4,974,484
Investment in and advances to unconsolidated affiliates		76		—		93,768		62,332		156,176
Goodwill and other intangible assets, net		324,285		224,719		775,377		100,798		1,425,179

(1) Includes depreciation expense associated with the real property assets under the Master Lease with GLPI.  In addition, total assets include these assets.  The interest expense associated with the financing obligation is reflected in the other category.  Net revenues and income (loss) from unconsolidated affiliates relate to the Company’s stand-alone racing operations, namely Rosecroft Raceway, which was sold  on July 31, 2016, Sanford Orlando Kennel Club and the Company’s Texas and New Jersey joint ventures, which do not have gaming operations.  Other also includes Penn Interactive Ventures, which is a wholly-owned subsidiary that is pursuing our interactive gaming strategy and our recent acquisition of Rocket Speed.