Information Concerning Guarantor and Non-Guarantor Subsidiaries | 15. INFORMATION CONCERNING GUARANTOR AND NON-GUARANTOR The $350 Million 5% Senior Notes and the $400 Million 5% Senior Notes were each issued by the Operating Partnership and Finco and are guaranteed on a senior unsecured basis by the Company, each of the Company’s four wholly-owned subsidiaries that own the Gaylord Hotels properties, and certain other of the Company’s subsidiaries, each of which guarantees the Operating Partnership’s Amended Credit Agreement (such subsidiary guarantors, together with the Company, the “Guarantors”). The subsidiary Guarantors are 100% owned, and the guarantees are full and unconditional and joint and several. Not all of the Company’s subsidiaries have guaranteed the Company’s $350 Million 5% Senior Notes and the $400 Million 5% Senior Notes. The following condensed consolidating financial information includes certain allocations of expenses based on management’s best estimates, which are not necessarily indicative of financial position, results of operations and cash flows that these entities would have achieved on a stand-alone basis. RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET June 30, 2017 (in thousands) Parent Issuer Guarantors Non- Eliminations Consolidated ASSETS: Property and equipment, net of accumulated depreciation $ — $ — $ 1,611,238 $ 412,669 $ — $ 2,023,907 Cash and cash equivalents - unrestricted 80 487 27 49,016 — 49,610 Cash and cash equivalents - restricted — — — 15,175 — 15,175 Notes receivable — — — 155,535 — 155,535 Investment in Gaylord Rockies joint venture — — — 87,716 — 87,716 Trade receivables, less allowance — — — 65,576 — 65,576 Prepaid expenses and other assets 411 — 1 57,485 358 58,255 Intercompany receivables, net — — 1,639,304 — (1,639,304 ) — Investments 992,991 2,886,114 647,452 768,525 (5,295,082 ) — Total assets $ 993,482 $ 2,886,601 $ 3,898,022 $ 1,611,697 $ (6,934,028 ) $ 2,455,774 LIABILITIES AND STOCKHOLDERS’ EQUITY: Debt and capital lease obligations $ — $ 1,560,018 $ — $ 649 $ — $ 1,560,667 Accounts payable and accrued liabilities 331 11,011 14,368 127,704 371 153,785 Dividends payable 41,712 — — — — 41,712 Deferred management rights proceeds — — — 178,572 — 178,572 Deferred income tax liabilities, net 415 — 460 465 — 1,340 Other liabilities — — 92,518 61,863 (13 ) 154,368 Intercompany payables, net 585,694 805,242 — 248,368 (1,639,304 ) — Commitments and contingencies Stockholders’ equity: Preferred stock — — — — — — Common stock 512 1 1 2,387 (2,389 ) 512 Additional paid-in-capital 892,979 754,942 2,831,499 1,473,557 (5,059,998 ) 892,979 Treasury stock (11,542 ) — — — — (11,542 ) Accumulated deficit (494,396 ) (244,613 ) 959,176 (459,645 ) (254,918 ) (494,396 ) Accumulated other comprehensive loss (22,223 ) — — (22,223 ) 22,223 (22,223 ) Total stockholders’ equity 365,330 510,330 3,790,676 994,076 (5,295,082 ) 365,330 Total liabilities and stockholders’ equity $ 993,482 $ 2,886,601 $ 3,898,022 $ 1,611,697 $ (6,934,028 ) $ 2,455,774 RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2016 (in thousands) Parent Issuer Guarantors Non- Eliminations Consolidated ASSETS: Property and equipment, net of accumulated depreciation $ — $ — $ 1,600,288 $ 397,724 $ — $ 1,998,012 Cash and cash equivalents - unrestricted 28 1,234 23 57,843 — 59,128 Cash and cash equivalents - restricted — — — 22,062 — 22,062 Notes receivable — — — 152,882 — 152,882 Investment in Gaylord Rockies joint venture — — — 70,440 — 70,440 Trade receivables, less allowance — — — 47,818 — 47,818 Prepaid expenses and other assets 460 42 5 55,407 (503 ) 55,411 Intercompany receivables, net — — 1,640,220 — (1,640,220 ) — Investments 988,467 2,886,113 546,007 803,618 (5,224,205 ) — Total assets $ 988,955 $ 2,887,389 $ 3,786,543 $ 1,607,794 $ (6,864,928 ) $ 2,405,753 LIABILITIES AND STOCKHOLDERS’ EQUITY: Debt and capital lease obligations $ — $ 1,501,895 $ — $ 659 $ — $ 1,502,554 Accounts payable and accrued liabilities 740 8,152 11,863 142,940 (490 ) 163,205 Dividends payable 39,404 — — — — 39,404 Deferred management rights proceeds — — — 180,088 — 180,088 Deferred income tax liabilities, net 828 — 573 68 — 1,469 Other liabilities — — 89,989 61,060 (13 ) 151,036 Intercompany payables, net 579,986 752,852 — 307,382 (1,640,220 ) — Commitments and contingencies Stockholders’ equity: Preferred stock — — — — — — Common stock 510 1 1 2,387 (2,389 ) 510 Additional paid-in-capital 893,102 835,294 2,827,692 1,410,611 (5,073,597 ) 893,102 Treasury stock (11,542 ) — — — — (11,542 ) Accumulated deficit (491,805 ) (210,805 ) 856,425 (475,133 ) (170,487 ) (491,805 ) Accumulated other comprehensive loss (22,268 ) — — (22,268 ) 22,268 (22,268 ) Total stockholders’ equity 367,997 624,490 3,684,118 915,597 (5,224,205 ) 367,997 Total liabilities and stockholders’ equity $ 988,955 $ 2,887,389 $ 3,786,543 $ 1,607,794 $ (6,864,928 ) $ 2,405,753 RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2017 (in thousands) Parent Issuer Guarantors Non- Eliminations Consolidated Revenues: Rooms $ — $ — $ — $ 110,674 $ — $ 110,674 Food and beverage — — — 128,441 — 128,441 Other hotel revenue — — 78,827 28,144 (82,713 ) 24,258 Entertainment — — 35,405 — 35,405 Total revenues — — 78,827 302,664 (82,713 ) 298,778 Operating expenses: Rooms — — — 28,359 — 28,359 Food and beverage — — — 68,285 — 68,285 Other hotel expenses — — 10,409 141,699 (78,720 ) 73,388 Management fees, net — — — 6,178 — 6,178 Total hotel operating expenses — — 10,409 244,521 (78,720 ) 176,210 Entertainment — — — 22,112 1 22,113 Corporate 45 396 1 7,147 — 7,589 Preopening costs — — — 494 — 494 Corporate overhead allocation 2,233 — 1,761 — (3,994 ) — Depreciation and amortization — — 14,877 12,802 — 27,679 Total operating expenses 2,278 396 27,048 287,076 (82,713 ) 234,085 Operating income (loss) (2,278 ) (396 ) 51,779 15,588 — 64,693 Interest expense — (17,149 ) — (6 ) — (17,155 ) Interest income — — — 2,969 — 2,969 Loss from joint ventures — — — (943 ) — (943 ) Other gains and (losses), net — — — (1,373 ) — (1,373 ) Income (loss) before income taxes (2,278 ) (17,545 ) 51,779 16,235 — 48,191 Provision for income taxes — — (55 ) (844 ) — (899 ) Equity in subsidiaries’ earnings, net 49,570 — — — (49,570 ) — Net income (loss) $ 47,292 $ (17,545 ) $ 51,724 $ 15,391 $ (49,570 ) $ 47,292 Comprehensive income (loss) $ 47,326 $ (17,545 ) $ 51,724 $ 15,425 $ (49,604 ) $ 47,326 RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2016 (in thousands) Parent Issuer Guarantors Non- Eliminations Consolidated Revenues: Rooms $ — $ — $ — $ 111,331 $ — $ 111,331 Food and beverage — — — 127,217 — 127,217 Other hotel revenue — — 77,689 27,745 (81,653 ) 23,781 Entertainment 59 — — 33,873 (46 ) 33,886 Total revenues 59 — 77,689 300,166 (81,699 ) 296,215 Operating expenses: Rooms — — — 28,140 — 28,140 Food and beverage — — — 67,998 — 67,998 Other hotel expenses — — 10,944 140,127 (77,580 ) 73,491 Management fees, net — — — 5,501 — 5,501 Total hotel operating expenses — — 10,944 241,766 (77,580 ) 175,130 Entertainment — — — 20,880 (46 ) 20,834 Corporate 111 433 1 6,352 — 6,897 Corporate overhead allocation 2,303 — 1,770 — (4,073 ) — Depreciation and amortization 48 — 14,755 11,606 — 26,409 Total operating expenses 2,462 433 27,470 280,604 (81,699 ) 229,270 Operating income (loss) (2,403 ) (433 ) 50,219 19,562 — 66,945 Interest expense — (16,339 ) 94 229 — (16,016 ) Interest income — — — 3,008 — 3,008 Loss from joint ventures — — — (1,058 ) — (1,058 ) Other gains and (losses), net — — (87 ) (46 ) — (133 ) Income (loss) before income taxes (2,403 ) (16,772 ) 50,226 21,695 — 52,746 Benefit for income taxes — — (97 ) (1,318 ) — (1,415 ) Equity in subsidiaries’ earnings, net 53,734 — — — (53,734 ) — Net income (loss) $ 51,331 $ (16,772 ) $ 50,129 $ 20,377 $ (53,734 ) $ 51,331 Comprehensive income (loss) $ 51,334 $ (16,772 ) $ 50,129 $ 20,380 $ (53,737 ) $ 51,334 RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2017 (in thousands) Parent Issuer Guarantors Non- Eliminations Consolidated Revenues: Rooms $ — $ — $ — $ 214,043 $ — $ 214,043 Food and beverage — — — 254,610 — 254,610 Other hotel revenue — — 158,321 56,577 (166,024 ) 48,874 Entertainment — — — 57,317 (24 ) 57,293 Total revenues — — 158,321 582,547 (166,048 ) 574,820 Operating expenses: Rooms — — — 56,387 — 56,387 Food and beverage — — — 137,442 — 137,442 Other hotel expenses — — 22,356 283,210 (158,105 ) 147,461 Management fees, net — — — 11,709 — 11,709 Total hotel operating expenses — — 22,356 488,748 (158,105 ) 352,999 Entertainment — — — 38,961 (23 ) 38,938 Corporate 90 802 2 14,210 — 15,104 Preopening costs — — — 710 — 710 Corporate overhead allocation 4,429 — 3,491 — (7,920 ) — Depreciation and amortization — — 29,684 25,632 — 55,316 Total operating expenses 4,519 802 55,533 568,261 (166,048 ) 463,067 Operating income (loss) (4,519 ) (802 ) 102,788 14,286 — 111,753 Interest expense — (33,006 ) — (13 ) — (33,019 ) Interest income — — — 5,917 — 5,917 Loss from joint ventures — — — (1,717 ) — (1,717 ) Other gains and (losses), net — — — (1,530 ) — (1,530 ) Income (loss) before income taxes (4,519 ) (33,808 ) 102,788 16,943 — 81,404 Provision for income taxes — — (37 ) (1,455 ) — (1,492 ) Equity in subsidiaries’ earnings, net 84,431 — — — (84,431 ) — Net income (loss) $ 79,912 $ (33,808 ) $ 102,751 $ 15,488 $ (84,431 ) $ 79,912 Comprehensive income (loss) $ 79,957 $ (33,808 ) $ 102,751 $ 15,533 $ (84,476 ) $ 79,957 RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2016 (in thousands) Parent Issuer Guarantors Non- Eliminations Consolidated Revenues: Rooms $ — $ — $ — $ 208,300 $ — $ 208,300 Food and beverage — — — 249,450 — 249,450 Other hotel revenue — — 156,336 56,459 (164,025 ) 48,770 Entertainment 148 — — 51,166 (122 ) 51,192 Total revenues 148 — 156,336 565,375 (164,147 ) 557,712 Operating expenses: Rooms — — — 54,121 — 54,121 Food and beverage — — — 136,255 — 136,255 Other hotel expenses — — 21,889 280,409 (156,119 ) 146,179 Management fees, net — — — 10,838 — 10,838 Total hotel operating expenses — — 21,889 481,623 (156,119 ) 347,393 Entertainment — — — 35,652 (122 ) 35,530 Corporate 194 807 2 12,865 — 13,868 Corporate overhead allocation 4,470 — 3,436 — (7,906 ) — Depreciation and amortization 80 — 29,498 25,604 — 55,182 Total operating expenses 4,744 807 54,825 555,744 (164,147 ) 451,973 Operating income (loss) (4,596 ) (807 ) 101,511 9,631 — 105,739 Interest expense — (32,452 ) 135 262 — (32,055 ) Interest income 28 — — 6,123 — 6,151 Loss from joint ventures — — — (1,448 ) — (1,448 ) Other gains and (losses), net — — (87 ) (93 ) — (180 ) Income (loss) before income taxes (4,568 ) (33,259 ) 101,559 14,475 — 78,207 Benefit for income taxes — — (90 ) (440 ) — (530 ) Equity in subsidiaries’ earnings, net 82,245 — — — (82,245 ) — Net income (loss) $ 77,677 $ (33,259 ) $ 101,469 $ 14,035 $ (82,245 ) $ 77,677 Comprehensive income (loss) $ 77,725 $ (33,259 ) $ 101,469 $ 14,083 $ (82,293 ) $ 77,725 RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Six Months Ended June 30, 2017 (in thousands) Parent Issuer Guarantors Non Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ 83,581 $ (55,377 ) $ 35,875 $ 49,829 $ — $ 113,908 Purchases of property and equipment — — (35,871 ) (43,601 ) — (79,472 ) Investment in Gaylord Rockies joint venture — — — (16,309 ) — (16,309 ) Increase in restricted cash and cash equivalents — — — 6,887 — 6,887 Other investing activities — — — (5,623 ) — (5,623 ) Net cash used in investing activities — — (35,871 ) (58,646 ) — (94,517 ) Net repayments under revolving credit facility — (241,900 ) — — — (241,900 ) Borrowings under term loan A — 200,000 — — — 200,000 Borrowings under term loan B — 500,000 — — — 500,000 Repayments under term loan B — (391,250 ) — — — (391,250 ) Deferred financing costs paid — (12,220 ) — — — (12,220 ) Payment of dividends (79,788 ) — — — — (79,788 ) Payment of tax withholdings for share-based compensation (3,769 ) — — — — (3,769 ) Other financing activities 28 — — (10 ) — 18 Net cash provided by (used in) financing activities (83,529 ) 54,630 — (10 ) — (28,909 ) Net change in cash and cash equivalents 52 (747 ) 4 (8,827 ) — (9,518 ) Cash and cash equivalents at beginning of period 28 1,234 23 57,843 — 59,128 Cash and cash equivalents at end of period $ 80 $ 487 $ 27 $ 49,016 $ — $ 49,610 RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Six Months Ended June 30, 2016 (in thousands) Parent Issuer Guarantors Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ 102,768 $ (60,725 ) $ 12,326 $ 72,533 $ — $ 126,902 Purchases of property and equipment (8,105 ) — (12,497 ) (35,276 ) — (55,878 ) Investment in Gaylord Rockies joint venture — — — (31,944 ) — (31,944 ) Proceeds from sale of Peterson LOI 6,785 — — — — 6,785 Increase in restricted cash and cash equivalents — — — (7,611 ) — (7,611 ) Other investing activities — — 28 (1,928 ) — (1,900 ) Net cash provided by (used in) investing activities (1,320 ) — (12,469 ) (76,759 ) — (90,548 ) Net repayments under revolving credit facility — 67,500 — — — 67,500 Net borrowings under term loan B — (2,000 ) — — — (2,000 ) Repayment of note payable related to purchase of AC Hotel — (6,000 ) — — — (6,000 ) Repurchase of Company stock for retirement (24,811 ) — — — — (24,811 ) Payment of dividends (74,648 ) — — — — (74,648 ) Payment of tax withholdings for share-based compensation (3,087 ) — — — — (3,087 ) Other financing activities 1,142 — — (9 ) — 1,133 Net cash provided by (used in) financing activities (101,404 ) 59,500 — (9 ) — (41,913 ) Net change in cash and cash equivalents 44 (1,225 ) (143 ) (4,235 ) — (5,559 ) Cash and cash equivalents at beginning of period 23 1,578 158 54,532 — 56,291 Cash and cash equivalents at end of period $ 67 $ 353 $ 15 $ 50,297 $ — $ 50,732 |