Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 23, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Tropicana Entertainment Inc. | ||
Entity Central Index Key | 1476246 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 26,312,500 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting status | Yes | ||
Entity Public Float | $149.10 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $195,735 | $356,755 |
Restricted cash | 15,740 | 30,856 |
Receivables, net | 22,713 | 28,786 |
Inventories | 7,482 | 4,435 |
Prepaid expenses and other assets | 13,671 | 11,243 |
Deferred tax assets, net | 9,078 | 0 |
Assets held for sale | 0 | 9,249 |
Total current assets | 264,419 | 441,324 |
Property and equipment, net | 740,752 | 460,745 |
Goodwill | 15,857 | 24,928 |
Intangible assets, net | 75,010 | 67,014 |
Investments | 32,825 | 33,640 |
Deferred tax assets, net | 150,023 | 0 |
Other assets, net | 10,804 | 15,970 |
Total assets | 1,289,690 | 1,043,621 |
Current liabilities: | ||
Current portion of long-term debt | 3,000 | 3,000 |
Liabilities of Assets Held-for-sale | 0 | 1,648 |
Accounts payable | 43,612 | 38,865 |
Accrued expenses and other current liabilities | 78,937 | 64,355 |
Total current liabilities | 125,549 | 107,868 |
Long-term debt, net | 291,992 | 294,771 |
Other long-term liabilities | 6,757 | 7,198 |
Deferred tax liabilities | 0 | 19,659 |
Total liabilities | 424,298 | 429,496 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Tropicana Entertainment Inc. preferred stock at $0.01 par value; 10,000,000 shares authorized, no shares issued | 0 | 0 |
Tropicana Entertainment Inc. common stock at $0.01 par value; 100,000,000 shares authorized, 26,312,500 shares issued and outstanding at December 31, 2014 and 2013 | 263 | 263 |
Additional paid-in capital | 600,359 | 600,359 |
Retained earnings | 264,770 | 13,503 |
Total shareholders' equity | 865,392 | 614,125 |
Total liabilities and shareholders' equity | $1,289,690 | $1,043,621 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 26,312,500 | 26,312,500 |
Common stock, shares outstanding | 26,312,500 | 26,312,500 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Casino | $592,467 | $439,929 | $479,300 |
Room | 113,890 | 88,277 | 89,815 |
Food and beverage | 103,319 | 75,847 | 80,644 |
Other | 26,594 | 22,058 | 23,190 |
Gross revenues | 836,270 | 626,111 | 672,949 |
Less promotional allowances | -89,609 | -68,444 | -79,591 |
Net revenues | 746,661 | 557,667 | 593,358 |
Operating costs and expenses: | |||
Casino | 271,857 | 198,219 | 214,589 |
Room | 41,159 | 32,160 | 32,823 |
Food and beverage | 50,283 | 37,660 | 36,618 |
Other | 16,845 | 15,700 | 16,149 |
Marketing, advertising and promotions | 57,819 | 39,844 | 38,392 |
General and administrative expense | 143,744 | 99,584 | 115,010 |
Maintenance and utilities | 70,512 | 56,699 | 57,125 |
Depreciation and amortization | 50,457 | 34,551 | 32,077 |
Impairment charges, other write-downs and recoveries | -4,484 | 487 | -2,430 |
Goodwill impairment | 9,071 | 0 | 0 |
Property Tax Settlement Benefit | -31,725 | 0 | 0 |
Total operating costs and expenses | 675,538 | 514,904 | 540,353 |
Operating income | 71,123 | 42,763 | 53,005 |
Other income (expense): | |||
Interest expense | -12,873 | -14,331 | -17,161 |
Interest income | 1,957 | 846 | 777 |
Predecessor claim settlement | 52,680 | 0 | 0 |
Loss on debt retirement | 0 | -4,897 | -12,847 |
Total other income (expense) | 41,764 | -18,382 | -29,231 |
Income (loss) from continuing operations before income taxes | 112,887 | 24,381 | 23,774 |
Income tax benefit (expense) | 140,009 | -2,534 | -2,864 |
Income from continuing operations | 252,896 | 21,847 | 20,910 |
Loss from discontinued operations, net | -1,629 | -3,744 | -1,813 |
Net income | $251,267 | $18,103 | $19,097 |
Basic and diluted income per common share: | |||
Income from continuing operations (in dollars per share) | $9.61 | $0.83 | $0.79 |
Loss from discontinued operations, net (in dollars per share) | ($0.06) | ($0.14) | ($0.06) |
Net income (loss) (in dollars per share) | $9.55 | $0.69 | $0.73 |
Weighted-average common shares outstanding: | |||
Basic and diluted (in shares) | 26,313 | 26,313 | 26,313 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Total Shareholders' Equity | Common Stock | Additional Paid-in Capital | Retained Earnings/(Accumulated Deficit) |
In Thousands, unless otherwise specified | |||||
Balance at Dec. 31, 2011 | $582,565 | $263 | $605,999 | ($23,697) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Favorable lease adjustment | -5,640 | 0 | -5,640 | 0 | |
Net income | 19,097 | 19,097 | 0 | 0 | 19,097 |
Balance at Dec. 31, 2012 | 596,022 | 263 | 600,359 | -4,600 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 18,103 | 18,103 | 0 | 0 | 18,103 |
Balance at Dec. 31, 2013 | 614,125 | 614,125 | 263 | 600,359 | 13,503 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 251,267 | 251,267 | 0 | 0 | |
Balance at Dec. 31, 2014 | $865,392 | $865,392 | $263 | $600,359 | $264,770 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $251,267 | $18,103 | $19,097 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss on sale of discontinued operations | 233 | 0 | 0 |
Loss on debt retirement | 0 | 4,897 | 12,847 |
Gain on insurance recoveries | -5,610 | 0 | -4,318 |
Depreciation and amortization (including discontinued operations) | 50,457 | 34,668 | 32,436 |
Amortization of debt discount and debt issuance costs | 1,025 | 1,255 | 3,302 |
Impairment charges and other write-downs (including discontinued operations) | 1,082 | 3,098 | 1,892 |
Goodwill impairment | 9,071 | 0 | 0 |
Insurance proceeds from business interruption | 1,250 | 0 | 731 |
Deferred income tax | -178,760 | 91 | 91 |
Changes in current assets and current liabilities: | |||
Receivables, net | 1,655 | -500 | 10,527 |
Inventories, prepaids and other assets | -1,613 | -945 | -522 |
Accrued interest | 1,182 | 1,164 | 0 |
Accounts payable, accrued expenses and other liabilities | 4,846 | -740 | -9,618 |
Other | 5,049 | 2,674 | 4,610 |
Net cash provided by operating activities | 141,134 | 63,765 | 71,075 |
Cash flows from investing activities: | |||
Additions of property and equipment | -80,554 | -57,274 | -44,450 |
Restricted cash for acquisition | 0 | -15,008 | 0 |
Insurance proceeds | 5,200 | 700 | 2,052 |
Proceeds from sale of discontinued operations | 6,750 | 0 | 0 |
LumiC(re Place acquisition, net of $11,015 cash acquired | -237,317 | 0 | 0 |
Other | 4,522 | 4,980 | 2,877 |
Net cash used in investing activities | -301,399 | -66,602 | -39,521 |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 0 | 298,500 | 171,500 |
Payment on early retirement of debt | 0 | 0 | -2,048 |
Payments on debt | -3,000 | -174,527 | -105,054 |
Restricted cash | 107 | -526 | 290 |
Payment of financing costs | 0 | -4,377 | -3,324 |
Net cash provided by (used in) financing activities | -2,893 | 119,070 | 61,364 |
Net increase (decrease) in cash and cash equivalents | -163,158 | 116,233 | 92,918 |
Decrease in cash and cash equivalents related to assets held for sale | 2,138 | 141 | 250 |
Cash and cash equivalents, beginning of period | 356,755 | 240,381 | 147,213 |
Cash and cash equivalents, end of period | 195,735 | 356,755 | 240,381 |
Supplemental cash flow disclosure (including discontinued operations): | |||
Cash paid for interest, net of interest capitalized | 11,830 | 11,947 | 13,823 |
Cash paid for income taxes | 32,178 | 3,702 | 5,500 |
Supplemental disclosure of non-cash items: | |||
Capital expenditures included in accrued expenses and other current liabilities | $8,213 | $1,631 | $4,556 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Statement of Cash Flows [Abstract] | |
LumiC(re Place acquisition, cash acquired | $11,015 |
BASIS_OF_PRESENTATION_AND_ORGA
BASIS OF PRESENTATION AND ORGANIZATION | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
BASIS OF PRESENTATION AND ORGANIZATION | BASIS OF PRESENTATION AND ORGANIZATION | |
Organization | ||
Tropicana Entertainment Inc. (the "Company," "TEI," "we," "us," or "our"), a Delaware corporation, is an owner and operator of regional casino and entertainment properties located in the United States and one casino resort development located on the island of Aruba. In April 2014, the Company acquired Lumière Place Casino, HoteLumière, the Four Seasons Hotel St. Louis and related excess land parcels in St. Louis, Missouri (collectively, "Lumière Place") for a cash purchase price of approximately $261.3 million, which includes an adjustment for working capital as of the acquisition date (see Note 3 - Lumière Place Acquisition for further discussion). The Company's United States properties include two casinos in Nevada and one casino in each of Indiana, Louisiana, Mississippi, Missouri and New Jersey. The Company views each property as an operating segment which it aggregates by region in order to present its reportable segments: (i) East, (ii) Central, (iii) West and (iv) South and other. The current operations of the Company, by region, include the following: | ||
• | East—Tropicana Casino and Resort, Atlantic City ("Tropicana AC") located in Atlantic City, New Jersey; | |
• | Central—Tropicana Evansville ("Tropicana Evansville") located in Evansville, Indiana; and Lumière Place located in St. Louis, Missouri; | |
• | West—Tropicana Laughlin Hotel and Casino ("Tropicana Laughlin") located in Laughlin, Nevada; and MontBleu Casino Resort & Spa ("MontBleu") located in Lake Tahoe, Nevada; and | |
• | South and other—Belle of Baton Rouge ("Belle of Baton Rouge") located in Baton Rouge, Louisiana; Trop Casino Greenville ("Tropicana Greenville") located in Greenville, Mississippi and Tropicana Aruba Resort & Casino ("Tropicana Aruba") located in Noord, Aruba. | |
In addition, in July 2014 the Company sold and concurrently leased back River Palms located in Laughlin, Nevada and by September 2014 had terminated the lease and discontinued its operations at the property. River Palms is presented as discontinued operations in the accompanying consolidated statements of income for all periods presented while the assets and liabilities are presented as held for sale in the accompanying consolidated balance sheet as of December 31, 2013 (see Note 18 - Discontinued Operations for further discussion). | ||
In April 2012, the Bayou Caddy's Jubilee Casino ("Jubilee") riverboat facility was closed and its operations were consolidated into Tropicana Greenville as part of a project to expand and rebrand that property. The grand opening of Tropicana Greenville occurred in May 2012. Because the Company is continuing operations within the Greenville market by combining the operations into one facility, Jubilee is not presented as discontinued operations in the accompanying financial statements. | ||
Background | ||
The Company was formed on May 11, 2009 to acquire certain assets of Tropicana Entertainment Holdings, LLC ("TEH"), and certain of its subsidiaries pursuant to their plan of reorganization under Chapter 11 of Title 11 of the United States Code. The Company also acquired CP Vicksburg, JMBS Casino, LLC ("JMBS Casino") and CP Laughlin Realty, LLC (" CP Laughlin Realty", collectively with CP Vicksburg and JMBS Casino, the "Affiliate Guarantors"), all of which were part of the same plan of reorganization (the "Plan") as TEH (collectively, the "Predecessors"). In addition, the Company acquired certain assets of Adamar of New Jersey, Inc. ("Adamar"), an unconsolidated subsidiary of TEH, pursuant to an amended and restated asset purchase agreement, including Tropicana AC. The reorganization of the Predecessors and the acquisition of Tropicana AC (together, the "Restructuring Transactions") were consummated and became effective on March 8, 2010 (the "Effective Date"), at which time the Company acquired Adamar and several of the Predecessors' gaming properties and related assets. Adamar was not a party to the Predecessors' bankruptcy. Prior to March 8, 2010, the Company conducted no business, other than in connection with the reorganization of the Predecessors and the acquisition of Tropicana AC, and had no material assets or liabilities. | ||
Pursuant to the Plan, on the Effective Date, a series of restructuring transactions were consummated through which the Company acquired the Predecessors in exchange for (i) the issuance of 12,098,053 shares of the Company's common stock, $0.01 par value per share ("Common Stock"), and warrants to purchase an additional 3,750,000 shares of Common Stock (the "Ordinary Warrants") in accordance with the Plan and (ii) the entering into new debt in accordance with the Plan, which included the issuance to certain lenders of warrants to purchase an additional 1,312,500 shares of the Company's Common Stock at $0.01 per share (the "Penny Warrants"). As a result of the reorganization the Company also applied fresh-start reporting. Additionally, on the Effective Date, certain subsidiaries of the Company acquired Tropicana AC, and the lenders under the TEH senior secured credit facility each received their pro rata share of 12,901,947 shares of the Company's Common Stock in exchange for their credit bid of $200.0 million (the "Credit Bid"). As a result, on the Effective Date, Carl C. Icahn, Chairman of the Company's Board of Directors, became the beneficial owner of approximately 47.5% of the Company's Common Stock. Since March 8, 2010, Mr. Icahn has increased his beneficial ownership to approximately 67.9% of the Company's Common Stock. See Note 15 - Stockholders' Equity for further discussion. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Principles of Consolidation | |||||||||||||
The accompanying financial statements include the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||
Significant Accounting Policies | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates incorporated in the Company's financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowance for doubtful accounts receivable, the estimated valuation allowance for deferred tax assets, certain tax liabilities, estimated cash flows in assessing the impairment of long-lived assets, intangible assets, Casino Reinvestment Development Authority (the "CRDA") investments, fair values of acquired assets and liabilities, self-insured liability reserves, customer loyalty program reserves, contingencies, litigation, claims, assessments and loss contingencies. Actual results could differ from these estimates. | |||||||||||||
Business Combinations | |||||||||||||
The Company accounts for business combinations in accordance with guidance related to business combinations using the purchase method of accounting for business combinations, which requires that the assets acquired and liabilities assumed be recorded on the date of acquisition at their respective fair value and the identification and recognition of intangible assets separately from goodwill. Additionally, the guidance requires, among other things, the buyer to: (1) expense acquisition-related costs; (2) recognize assets or liabilities assumed arising from contractual contingencies on the acquisition date using acquisition-date fair values; (3) recognize goodwill as the excess of the consideration transferred plus the fair value of any noncontrolling interest over the acquisition-date fair value of net assets acquired; (4) recognize, on the acquisition date, any contingent consideration using acquisition-date fair values (i.e., fair value earn-outs in the initial accounting for the acquisition); and (5) eliminate the recognition of liabilities for restructuring costs expected to be incurred as a result of the business combination. In addition, if the buyer determines that some or all of its previously booked deferred tax valuation allowance is no longer needed as a result of the business combination, the guidance requires that the reduction or elimination of the valuation allowance be accounted as a reduction of income tax expense. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash and cash equivalents include cash, cash on hand in the casino cages, certificates of deposit, money market funds and other highly liquid investments with original maturities of three months or less. | |||||||||||||
Restricted Cash | |||||||||||||
Restricted cash consisted primarily of funds invested in money market funds. At December 31, 2014 and 2013, $9.6 million and $9.7 million, respectively, was restricted by the United States Bankruptcy Court for the District of Delaware ("Bankruptcy Court") in connection with the reorganization of the Predecessors for the purpose of satisfying liabilities related to professional services incurred in connection with the Restructuring Transactions, and $6.2 million and $6.2 million, respectively, was restricted to collateralize letters of credit. In addition, at December 31, 2013, $15.0 million was held in escrow in connection with the agreement to purchase Lumiére Place. | |||||||||||||
Concentration of Credit Risk | |||||||||||||
Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalent accounts maintained in financial institutions and accounts receivable. Bank accounts are insured by the Federal Deposit Insurance Corporation up to $250,000 or with the Securities Investor Protection Corporation up to $500,000. Concentration of credit risk, with respect to casino receivables, is limited through the Company's credit evaluation process. The Company issues markers to approved casino customers following credit checks and investigations of credit worthiness. | |||||||||||||
Receivables | |||||||||||||
Receivables consist primarily of casino, hotel and other receivables, net of an allowance for doubtful accounts. Receivables are typically non-interest bearing and are initially recorded at cost. Accounts are written off when management deems the account to be uncollectible. An estimated allowance for doubtful accounts is maintained to reduce the Company's receivables to their expected realization, which approximates fair value. The allowance is estimated based on specific reviews of customer accounts as well as historical collection experience and current economic and business conditions. Recoveries of accounts previously written off are recorded when received. | |||||||||||||
Inventories | |||||||||||||
Inventories consist primarily of food and beverage, retail merchandise and operating supplies and are stated at the lower of cost or market. Cost is determined using the first-in, first-out method. | |||||||||||||
Property and Equipment | |||||||||||||
Property and equipment under fresh-start reporting and business combination guidance is stated at fair value as of the Effective Date and acquisition date, respectively. Property and equipment acquired subsequent to the Effective Date and the acquisition date are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets or, for capital leases and leasehold improvements, over the shorter of the asset's useful life or the term of the lease. Gains or losses on disposals of assets are recognized as incurred. Costs of major improvements are capitalized, while costs of normal repairs and maintenance are expensed as incurred. | |||||||||||||
The Company must make estimates and assumptions when accounting for capital expenditures. Whether an expenditure is considered a maintenance expense or a capital asset is a matter of judgment. In contrast to normal repair and maintenance costs that are expensed when incurred, items the Company classifies as maintenance capital are expenditures necessary to keep its existing properties at their current levels and are typically replacement items due to the normal wear and tear of its properties and equipment as a result of use and age. The Company's depreciation expense is highly dependent on the assumptions it makes about its assets' estimated useful lives. The Company determines the estimated useful lives based on its experience with similar assets, engineering studies and its estimate of the usage of the asset. Whenever events or circumstances occur that change the estimated useful life of an asset, the Company accounts for the change prospectively. | |||||||||||||
Long-Lived Assets | |||||||||||||
The Company evaluates its property and equipment and other long-lived assets for impairment in accordance with accounting guidance related to impairment or disposal of long-lived assets. For assets to be held for sale, the Company recognizes the asset to be sold at the lower of carrying value or fair value less costs to sell. Fair value for assets held for sale is generally estimated based on comparable asset sales, solicited offers or a discounted cash flow model. For long-lived assets to be held and used, the Company reviews for impairment whenever indicators of impairment exist. If an indicator of impairment exists, the Company compares the estimated undiscounted future cash flows of the asset to the carrying value of the asset. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows are less than the carrying value, then impairment is measured based on estimated fair value compared to carrying value, with fair value typically based on a discounted cash flow model. | |||||||||||||
Goodwill and Intangible Assets | |||||||||||||
Goodwill represents the excess of purchase price over fair value of assets acquired and liabilities assumed in business combinations or under fresh-start reporting. In accordance with accounting guidance related to goodwill and other intangible assets, the Company tests for impairment of goodwill and indefinite-lived intangible assets at the reporting unit level in the fourth quarter of each year and in certain situations between those annual dates if events occur or circumstances change indicating potential impairment. The Company has the option to begin with a qualitative assessment, commonly referred to as Step 0, to determine whether it is more likely than not that the reporting units fair value is less than its carrying value. This qualitative assessment may include, but is not limited to, reviewing factors such as the general economic environment, industry and market conditions, changes in key assumptions used since the most recently performed valuation and overall financial performance of the reporting units. If the Company determines the reporting units are not at risk of failing the qualitative assessment no impairment testing is required. | |||||||||||||
The Company's annual impairment testing for goodwill is performed at the reporting unit level and each of its casino properties is considered to be a reporting unit. The annual goodwill impairment testing utilizes a two step process. In the first step, the Company compares the fair value of each reporting unit with its carrying amount, including goodwill. The fair value of each reporting unit is estimated using the expected present value of future cash flows along with indications provided by the current valuation multiples of comparable publicly traded companies. If the fair value of the reporting unit exceeds its carrying amount, then goodwill of the reporting unit is not considered impaired. If the carrying amount of the reporting unit exceeds its fair value, then the goodwill of the reporting unit is considered impaired and the Company proceeds to the second step of the goodwill impairment test. In the second step, the Company determines the implied fair value of the reporting unit's goodwill by allocating the fair value of the reporting unit determined in step one to the assets and liabilities of the reporting unit, as if the reporting unit had been acquired in business combination. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. | |||||||||||||
The Company’s indefinite-lived intangible assets, which include its "Tropicana" trade name and certain gaming licenses, are not subject to amortization but are tested for impairment annually. A qualitative assessment of indefinite-lived assets may be performed to determine whether it is necessary to perform the quantitative impairment test. The quantitative annual impairment test for indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The fair value of the trade name is estimated using the relief from royalty method, a form of both the income approach and the market approach, which is a function of prospective revenue, the royalty rate that would hypothetically be charged by a licensor of an asset to an unrelated licensee, and a discount rate. The fair value of the Company’s gaming licenses is estimated using the Greenfield method of the discounted cash flow approach which is the function of the cost to build a new casino operation, the build out period, projected cash flows attributed to the casino once operational, and a discount rate. | |||||||||||||
The Company’s definite-lived intangible assets include customer lists and favorable lease arrangements. Intangible assets with a definite life are amortized over their useful life, which is the period over which the asset is expected to contribute directly or indirectly to future cash flows. Management periodically assesses the amortization period of intangible assets with definite lives based upon estimated future cash flows from related operations. | |||||||||||||
The Company believes its prospective cash flow assumptions are reasonable. However, future cash flow estimates are, by their nature, subjective and actual results may differ materially from the Company’s estimates. If ongoing estimates of future cash flows are not met, impairment charges may be recorded in future accounting periods. Estimates of cash flows are based on the current regulatory, political and economic climates, recent operating information and budgets of the various properties where the Company conducts operations. These estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, or other events affecting various forms of travel and access to the Company’s properties. | |||||||||||||
CRDA Investments | |||||||||||||
The New Jersey Casino Reinvestment Development Authority ("CRDA") deposits made by Tropicana AC are carried at fair value. The CRDA deposits are recorded at fair value and are used to purchase CRDA bonds that carry below market interest rates unless an alternative investment is approved. A valuation allowance is established, unless there is an agreement with the CRDA for a return of the deposit at full face value, by a charge to the statement of operations as part of general and administrative expense. If the CRDA deposits are used to purchase CRDA bonds, the valuation allowance is transferred to the bonds as a discount, which is amortized to interest income using the interest method. If the CRDA deposits are used to make other investments, the valuation allowance is transferred to those investments and remains a valuation allowance. The CRDA bonds are classified as held-to-maturity securities and are carried at amortized cost less any adjustments for other than temporary impairments. | |||||||||||||
Debt Issuance Costs | |||||||||||||
Debt issuance costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense over the expected terms of the related debt agreements using the effective interest method, and are included in other assets, net, on the Company's balance sheets. | |||||||||||||
Self-Insurance Reserves | |||||||||||||
The Company is self-insured up to certain stop loss amounts for employee health coverage, workers' compensation and general liability claims. Insurance claims and reserves include accruals of estimated settlements for known claims, as well as accruals of estimates for claims incurred but not yet reported as estimated by management with the assistance of a third party claims administrator. In estimating these accruals, historical loss experience is considered and judgments are made about the expected levels of costs per claim. The Company believes its estimates of future liability are reasonable based upon its methodology; however, changes in health care costs, accident frequency and severity and other factors could materially affect the estimates for these liabilities. The Company continually monitors changes in claim type and incident and evaluates the insurance accrual, making necessary adjustments based on the evaluation of these qualitative data points. At December 31, 2014 and 2013, the Company had total self-insurance accruals of $10.1 million and $7.7 million, respectively, reflected in its balance sheets, including amounts classified as liabilities related to assets held for sale in 2013. | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||
As defined under GAAP, fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in the principal market or in the most advantageous market when no principal market exists. Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized in a current or future market exchange. See Note 4 - Fair Value for further detail related to the fair value of financial instruments. | |||||||||||||
Customer Loyalty Program | |||||||||||||
The Company provides certain customer loyalty programs (the "Programs") at its casinos, which allow customers to redeem points earned from their gaming activity for cash, food, beverage, rooms or merchandise. Under the Programs, customers are able to accumulate points that may be redeemed in the future, subject to certain limitations and the terms of the Programs. The Company records a liability for the estimated cost of the outstanding points under the Programs that it believes will ultimately be redeemed. The estimated cost of the outstanding points under the Programs is calculated based on estimates and assumptions regarding marginal costs of the goods and services, redemption rates and the mix of goods and services for which the points are expected to be redeemed. For points that may be redeemed for cash, the Company accrues this cost (after consideration of estimated redemption rates) as they are earned from gaming play, which is included in promotional allowances. For points that may only be redeemed for goods or services but cannot be redeemed for cash, the Company estimates the cost and accrues for this expense as the points are earned from gaming play, which is recorded as casino operating costs and expenses. At December 31, 2014 and 2013, the Company had $6.3 million and $4.3 million accrued for the estimated cost of anticipated redemptions under the Programs, including amounts classified as liabilities related to assets held for sale in 2013. | |||||||||||||
Revenue Recognition and Promotional Allowances | |||||||||||||
Casino revenue represents the difference between wins and losses from gaming activities. Room, food and beverage and other operating revenues are recognized at the time the goods or services are provided. The Company collects taxes from customers at the point of sale on transactions subject to sales and other taxes. Revenues are recorded net of any taxes collected. The majority of the Company's casino revenue is counted in the form of cash and chips and, therefore, is not subject to any significant or complex estimation. The retail value of rooms, food and beverage and other services provided to customers on a complimentary basis is included in gross revenues and then deducted as promotional allowances. Promotional allowances also include incentives earned in our slot bonus program such as cash, complimentary play, and the estimated retail value of goods and services (such as complimentary rooms and food and beverages). We reward customers, through the use of bonus programs, with points based on amounts wagered that can be redeemed for a specified period of time, principally for complimentary play, and to a lesser extent for goods or services, depending upon the property. | |||||||||||||
The amounts included in promotional allowances consist of the following (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Room | $ | 33,693 | $ | 26,126 | $ | 27,125 | |||||||
Food and beverage | 46,914 | 35,234 | 40,354 | ||||||||||
Other | 9,002 | 7,084 | 12,112 | ||||||||||
Total | $ | 89,609 | $ | 68,444 | $ | 79,591 | |||||||
The estimated departmental costs and expenses of providing these promotional allowances, for continuing operations, are included in casino operating costs and expenses and consist of the following (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Room | $ | 18,843 | $ | 15,153 | $ | 15,201 | |||||||
Food and beverage | 43,201 | 33,470 | 36,464 | ||||||||||
Other | 3,598 | 2,410 | 2,326 | ||||||||||
Total | $ | 65,642 | $ | 51,033 | $ | 53,991 | |||||||
Gaming Taxes | |||||||||||||
The Company is subject to taxes based on gross gaming revenues, the number of gaming devices and/or the number of admissions in the jurisdictions in which the Company operates, subject to applicable jurisdictional adjustments. These gaming taxes are recognized in casino operating costs and expenses in the accompanying consolidated statements of income. Gaming taxes included in continuing operations totaled $104.4 million, $67.1 million and $74.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Advertising | |||||||||||||
The Company expenses advertising costs as incurred or the first time the advertising takes place. Advertising expense, included in continuing operations, which is generally recognized in marketing, advertising and promotions in the accompanying consolidated statements of income, was $20.0 million, $10.4 million and $9.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Income Taxes | |||||||||||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that included the enactment date. Future tax benefits are recognized to the extent that realization of those benefits is considered more likely than not, and a valuation allowance is established for deferred tax assets which do not meet this threshold. | |||||||||||||
Recently Issued Accounting Standards | |||||||||||||
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, an amendment to FASB Accounting Standards Codification ("ASC") Topic 205, Presentation of Financial Statements. This update provides guidance on management's responsibility in evaluating whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This ASU is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its financial statement disclosures. | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The standard will be effective for the first interim period within fiscal years beginning after December 15, 2016, using one of two retrospective application methods. The Company is evaluating the impacts, if any, the adoption of ASU No. 2014-09 will have on the Company's financial position or results of operations. | |||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for reporting discontinued operations. Under the amendment a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when any of the following occurs: (i) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (ii) the component of an entity or group of components of an entity is disposed of by sale; and (iii) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). This new guidance is effective prospectively for all disposals (or classifications as held for sale) of components of an entity and all business activities, on acquisition, that are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. | |||||||||||||
A variety of proposed or otherwise potential accounting standards are currently under consideration by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, we have not yet determined the effect, if any, that the implementation of such proposed standards would have on our financial statements. | |||||||||||||
Reclassifications | |||||||||||||
The accompanying consolidated financial statements reflect certain reclassifications to prior year amounts in order to conform with current year presentation. The reclassifications have no effect on previously reported net income. | |||||||||||||
Favorable lease adjustment | |||||||||||||
In connection with the adoption of fresh-start reporting as of the Effective Date, the Company recognized favorable lease assets which were being amortized to rental expense on a straight-line basis over 30 years. In 2012, the Company determined that certain favorable lease agreements were not assumed by the Company pursuant to the Company's Plan of Reorganization and emergence from bankruptcy and, accordingly, the related favorable lease asset should not have been recognized on the Effective Date. The Company evaluated the effects of this adjustment on the financial statements and concluded that the error was not material to any prior annual or interim periods or the current period. In June of 2012 the Company reduced additional paid-in capital by $5.6 million, reduced intangible assets, net by $5.3 million and reversed rental expense of $0.3 million related to prior periods to remove the favorable lease assets. |
LUMIERE_PLACE_ACQUISITION
LUMIERE PLACE ACQUISITION | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
LUMIERE PLACE ACQUISITION | LUMIÈRE PLACE ACQUISITION | |||||||
Overview | ||||||||
As discussed in Note 1 - Basis of Presentation and Organization, on April 1, 2014, the Company completed its previously announced acquisition of all of the outstanding stock of Casino One Corporation (the “Target”) and all of the outstanding membership interests of PNK (ES), LLC (“ES”), PNK (ST. LOUIS RE), LLC (“RE”), and PNK (STLH), LLC (“STLH” and together with ES, RE and the Target, the “Companies”), pursuant to the terms of an Equity Interest Purchase Agreement (the “Purchase Agreement”), dated as of August 16, 2013, by and among Tropicana St. Louis LLC (the “Buyer”), a wholly owned subsidiary of the Company, and Pinnacle Entertainment, Inc. (“Pinnacle”), Casino Magic, LLC (“Casino Magic” and together with Pinnacle, the “Sellers”) and the Companies. Upon consummation of the acquisition, the Buyer acquired the Lumière Place Casino, HoteLumière, the Four Seasons Hotel St. Louis and related excess land parcels in St. Louis, Missouri. | ||||||||
Consideration Transferred | ||||||||
The cash purchase price was approximately $261.3 million, which includes an adjustment for working capital as of the acquisition date. The Company funded the net purchase price using cash, which included proceeds from the New Credit Facilities issuance on November 27, 2013. Acquisition-related expense included in the accompanying consolidated statements of income for the years ended December 31, 2014 and 2013 was $1.3 million and $0.7 million, respectively. There was no acquisition-related expense for the year ended December 31, 2012. | ||||||||
Allocation of Purchase Price | ||||||||
The Company is required to allocate the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their fair values. The determination of the fair values of the acquired assets and assumed liabilities requires significant judgment. The fair value of Lumière Place's property and equipment and intangible assets utilized for purchase price allocation are considered preliminary as we continue to finalize the valuation in accordance with the Purchase Agreement. | ||||||||
The preliminary purchase price allocation was as follows (in thousands): | ||||||||
Fair Value | ||||||||
Current assets | $ | 15,931 | ||||||
Property and equipment | 249,097 | |||||||
Intangible assets | 8,848 | |||||||
Other assets | 657 | |||||||
Total assets | 274,533 | |||||||
Total liabilities | (13,227 | ) | ||||||
Total purchase price | $ | 261,306 | ||||||
The fair value of the intangible assets as of the acquisition date is primarily associated with the casino's gaming license which is not subject to amortization (see Note 7 - Goodwill and Intangible Assets). Goodwill associated with the acquisition was immaterial. | ||||||||
Consolidated Statements of Income for the period from April 1, 2014 through December 31, 2014 | ||||||||
The results of operations for Lumière Place have been included in the Company's financial statements since the acquisition date. The amounts of revenue and loss of Lumière Place included in the accompanying consolidated statements of income for the year ended December 31, 2014 are as follows (in thousands): | ||||||||
Period from | ||||||||
April 1 to December 31, 2014 | ||||||||
Net revenues | $ | 124,882 | ||||||
Net loss | (3,153 | ) | ||||||
Supplemental Unaudited Pro Forma Information | ||||||||
The following unaudited pro forma information reflects the consolidated results of operations of the Company as though the acquisition had taken place at the beginning of the respective periods presented. The unaudited pro forma information has been presented for illustrative purposes only and is not indicative of the consolidated results of operations that would have been achieved or the future consolidated results of operations of the Company. The unaudited pro forma information is as follows (in thousands, except per share data): | ||||||||
Year ended December 31, | ||||||||
2014 | 2013 | |||||||
Net Revenues | $ | 787,656 | $ | 737,751 | ||||
Net Income | 251,695 | 37,060 | ||||||
Basic and diluted net income per common share | $ | 9.57 | $ | 1.41 | ||||
The pro forma results include adjustments to general and administrative expense to exclude the Company's non-recurring transaction costs related to the acquisition and to interest expense due to lower interest rates on the New Credit Facilities issued to refinance the Company's existing debt and fund a portion of the purchase price. In addition, the pro forma results include adjustments to eliminate Lumière Place's historical impairment of assets which was recognized by Lumière Place in connection with the acquisition. Lastly, the pro forma results include adjustments to depreciation and amortization expense, based on the fair values of the property and equipment and definite life intangible assets acquired. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
FAIR VALUE | FAIR VALUE | |||||||||||||||
The carrying values of the Company's cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value because of the short term maturities of these instruments. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows: | ||||||||||||||||
• | Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |||||||||||||||
• | Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | |||||||||||||||
• | Level 3 - Unobservable inputs reflect the Company's judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. The Company develops these inputs based on the best information available, including its own data. | |||||||||||||||
The following table presents a summary of fair value measurements by level for certain assets measured at fair value on a recurring basis included in the accompanying consolidated balance sheets at December 31, 2014 and 2013 (in thousands): | ||||||||||||||||
Input Levels for Fair Value Measurements | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
31-Dec-14 | ||||||||||||||||
Assets: | ||||||||||||||||
CRDA deposits, net | $ | — | $ | — | $ | 24,384 | $ | 24,384 | ||||||||
31-Dec-13 | ||||||||||||||||
Assets: | ||||||||||||||||
CRDA deposits, net | $ | — | $ | — | $ | 22,337 | $ | 22,337 | ||||||||
Funds on deposit with the CRDA are held in an interest bearing accounts by the CRDA. Interest is earned at the stated rate that approximates two-thirds of the current market rate for similar assets. The Company records charges to expense to reflect the lower return on investment and records the deposit at fair value. The fair value of the CRDA deposits, classified in the fair value hierarchy as Level 3, are estimated using valuation allowances calculated based on market rates for similar assets and other information received from the CRDA. See Note 9 - Investments for more detail related to the CRDA deposits. | ||||||||||||||||
The following table summarizes the changes in fair value of the Company's Level 3 CRDA deposits (in thousands): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Balance at January 1 | $ | 22,337 | $ | 22,764 | ||||||||||||
Realized or unrealized losses | (705 | ) | (2,161 | ) | ||||||||||||
Additional CRDA deposits | 3,998 | 2,869 | ||||||||||||||
Purchases of CRDA investments | (1,246 | ) | (1,135 | ) | ||||||||||||
Balance at December 31 | $ | 24,384 | $ | 22,337 | ||||||||||||
Losses are recognized in general and administrative expense included in the accompanying consolidated statements of income. There were no transfers between fair value levels for 2014 or 2013. | ||||||||||||||||
The following table summarizes assets measured at fair value on a nonrecurring basis during the years ended December 31, 2014 and 2013 included in the accompanying consolidated balance sheets (in thousands): | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
Category | Level 3 Asset | Recognized Loss | Level 3 Asset | Recognized Loss | ||||||||||||
Goodwill | $ | 15,857 | $ | 9,071 | $ | — | $ | — | ||||||||
Assets held for sale, net | — | — | 7,601 | 2,611 | ||||||||||||
Goodwill represents the excess of purchase price over fair value of assets acquired and liabilities assumed in business combinations or under fresh-start reporting. In accordance with accounting guidance related to goodwill and other intangible assets, the Company tests for impairment of goodwill and indefinite-lived intangible assets annually in the fourth quarter of each year and in certain situations between those annual dates. See Note 2 - Summary of Significant Accounting Policies for more detail related to the goodwill impairment analysis. | ||||||||||||||||
For the assets held for sale, net, the Company recognizes the asset to be sold at the lower of carrying value or fair value less costs to sell. Fair value for assets held for sale is generally estimated based on comparable asset sales, solicited offers or a discounted cash flow model. See Note 18 - Discontinued Operations for more detail related to the assets held for sale impairment analysis. | ||||||||||||||||
Long-term Debt | ||||||||||||||||
The Company's long-term debt is carried at amortized cost in the accompanying consolidated balance sheets. The fair value of the Company's long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices for similar issues. The estimated fair value of long-term debt as of December 31, 2014 and 2013 is approximately $288.3 million and $300.7 million. | ||||||||||||||||
CRDA Bonds | ||||||||||||||||
The Company's CRDA bonds are classified as held-to-maturity since the Company has the ability and intent to hold these bonds to maturity under the CRDA, the Company is not permitted to do otherwise. The CRDA Bonds are initially recorded at a discount to approximate fair value. After the initial determination of fair value, the company will analyze the CRDA bonds quarterly for recoverability based on management's historical collection experience and other information received from the CRDA. If indications exist that the CRDA bond is impaired, additional valuation allowances will be recorded. The fair value of the Company's CRDA bonds are considered a Level 3 fair value measurement. The CRDA bonds carrying value as of December 31, 2014 and 2013 net of the unamortized discount and valuation allowance is $8.4 million and $8.7 million, respectively, which approximates fair value. See Note 9 - Investments for more detail related to the CRDA bonds. |
RECEIVABLES
RECEIVABLES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
RECEIVABLES | RECEIVABLES | |||||||
Receivables consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Casino | $ | 15,472 | $ | 18,000 | ||||
Hotel | 4,897 | 4,539 | ||||||
Predecessors' administrative tax claim | — | 10,478 | ||||||
Income tax receivable | — | 1,266 | ||||||
Other | 13,596 | 6,308 | ||||||
33,965 | 40,591 | |||||||
Allowance for doubtful accounts | (11,252 | ) | (11,805 | ) | ||||
Receivables, net | $ | 22,713 | $ | 28,786 | ||||
The Predecessors' administrative tax claim amounts represented tax refund claims filed related to our Predecessors. In September 2014, the Company partially settled certain Predecessors' administrative tax claims resulting in an adjustment to receivables of $8.3 million (see Note 14 - Commitments and Contingencies for further discussion). In addition, the Company wrote-off the remaining $2.2 million related to the Predecessors' administrative tax claims due to the statute of limitations expiring at the end of 2014. | ||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company recognized bad debt expense of $2.2 million, $2.1 million and $2.4 million, respectively, and had write-offs, net of recoveries, related to uncollectable account receivables of $3.5 million, $2.4 million and $2.0 million, respectively, majority of which was related to Tropicana AC. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT | |||||||||
Property and equipment consist of the following (in thousands): | ||||||||||
Estimated | December 31, | |||||||||
life | ||||||||||
(years) | 2014 | 2013 | ||||||||
Land | — | $ | 115,947 | $ | 89,724 | |||||
Buildings and improvements | 10 - 40 | 549,929 | 335,050 | |||||||
Furniture, fixtures and equipment | 3 - 7 | 182,948 | 130,174 | |||||||
Riverboats and barges | 5 - 15 | 16,908 | 18,990 | |||||||
Construction in progress | — | 46,058 | 12,708 | |||||||
911,790 | 586,646 | |||||||||
Accumulated depreciation | (171,038 | ) | (125,901 | ) | ||||||
Property and equipment, net | $ | 740,752 | $ | 460,745 | ||||||
The increase in property and equipment from 2013 to 2014 is primarily attributed to the acquisition of Lumière Place on April 1, 2014 (see Note 3 - Lumière Place Acquisition). Depreciation expense for property and equipment totaled $50.4 million, $34.4 million and $31.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||||
Goodwill and other indefinite-life intangible assets are subject to an annual assessment for impairment during the fourth quarter, or more frequently if there are indications of possible impairment, by applying a fair-value-based test. | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
Changes in the carrying amount of Goodwill by segment are as follows (in thousands): | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Impairment | Carrying | Carrying | Impairment | Carrying | |||||||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||||||||
Central | $ | 14,224 | $ | — | $ | 14,224 | $ | 14,224 | $ | — | $ | 14,224 | ||||||||||||
South and other | 1,731 | (1,731 | ) | — | 1,731 | (1,731 | ) | — | ||||||||||||||||
Corporate | 10,704 | (9,071 | ) | 1,633 | 10,704 | — | 10,704 | |||||||||||||||||
Total | $ | 26,659 | $ | (10,802 | ) | $ | 15,857 | $ | 26,659 | $ | (1,731 | ) | $ | 24,928 | ||||||||||
During the first quarter of 2014, the Company determined there was an indication of impairment related to goodwill recorded at its Corporate segment which is tested at the Tropicana AC reporting unit level. The Company recognized a $9.1 million impairment of goodwill in the accompanying consolidated statement of income for the year ended December 31, 2014, due to Tropicana AC's carrying value exceeding its fair value. | ||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
Intangible assets consist of the following (in thousands): | ||||||||||||||||||||||||
Estimated | December 31, | |||||||||||||||||||||||
life | ||||||||||||||||||||||||
(years) | 2014 | 2013 | ||||||||||||||||||||||
Trade name | Indefinite | $ | 25,500 | $ | 25,500 | |||||||||||||||||||
Gaming licenses | Indefinite | 37,387 | 28,700 | |||||||||||||||||||||
Customer lists | 3 | 3,021 | 2,861 | |||||||||||||||||||||
Favorable lease | 5 - 42 | 15,374 | 15,645 | |||||||||||||||||||||
Total intangible assets | 81,282 | 72,706 | ||||||||||||||||||||||
Less accumulated amortization: | ||||||||||||||||||||||||
Customer lists | (2,901 | ) | (2,861 | ) | ||||||||||||||||||||
Favorable lease | (3,371 | ) | (2,831 | ) | ||||||||||||||||||||
Total accumulated amortization | (6,272 | ) | (5,692 | ) | ||||||||||||||||||||
Intangible assets, net | $ | 75,010 | $ | 67,014 | ||||||||||||||||||||
Upon the adoption of fresh-start reporting, the Company recognized an indefinite life trade name related to the "Tropicana" trade name and indefinite life gaming licenses related to entities that are located in gaming jurisdictions where competition is limited to a specified number of licensed gaming operators. In April 2014, indefinite life gaming licenses increased related to the acquisition of Lumière Place (see Note 3 - Lumière Place Acquisition). At December 31, 2014 the indefinite life gaming licenses consists of $28.7 million and $8.7 million related to Tropicana Evansville and Lumière Place, respectively. At December 31, 2013, the indefinite life gaming license of $28.7 million is related to Tropicana Evansville. | ||||||||||||||||||||||||
The gaming license associated with Lumière Place is valued based on the Greenfield method, which is the function of the cost to build a new casino operation, build-out period, projected cash flows attributed to the business once operational and a discount rate. The projected cash flows assumed a revenue growth rate of 2.0% and a effective tax rate of 38.1%. The discount rate assumed was 12.0%, based on the weighted average cost of capital plus a premium to reflect the risk of construction costs and timing. | ||||||||||||||||||||||||
Customer lists represent the value associated with customers enrolled in our customer loyalty programs and are amortized on a straight-line basis over three years. The customer lists valued upon adoption of fresh-start reporting and in connection with the Tropicana AC acquisition were fully amortized as of February 2013. In April 2014, customer lists increased related to the acquisition of Lumière Place (see Note 3 - Lumière Place Acquisition). Amortization expense related to customer lists, which is amortized to depreciation and amortization expense, for the year ended December 31, 2014 was less than $0.1 million. The amortization expense for the years ended December 31, 2013 and 2012 were $0.2 million and $1.0 million, respectively. Estimated annual amortization related to the Lumière Place customer list is anticipated to be $0.1 million in 2015 and 2016 and less than $0.1 million in 2017. | ||||||||||||||||||||||||
The customer list associated with Lumière Place is valued based on a market approach which considers the price that would be negotiated between a hypothetical buyer and seller. The price was calculated by using market rates for leased customer lists and multiplying it by a value multiple to convert the lease rates into purchase rates. | ||||||||||||||||||||||||
Favorable lease arrangements were valued upon adoption of fresh-start reporting and are being amortized to rental expense on a straight-line basis over the remaining useful life of the respective leased facility. In connection with the Tropicana AC acquisition, the Company also recognized intangible assets relating to favorable lease arrangements which are being amortized to tenant income on a straight-line basis over the terms of the various leases. Additionally, in connection with the acquisition of Tropicana Aruba, the Company recognized intangible assets relating to a favorable land lease arrangement which is amortized to rental expense on a straight-line basis over the remaining term of the land lease. Amortization expense related to favorable lease arrangements, which is amortized to rental expense or tenant income, as applicable, for the years ended December 31, 2014, 2013 and 2012, was $0.8 million, $0.8 million and $0.9 million, respectively. Estimated annual amortization related to the Company's favorable lease arrangements is anticipated to be $0.7 million in the year ending December 31, 2015 and $0.4 million in each of the years ending December 31, 2016, 2017, 2018 and 2019. | ||||||||||||||||||||||||
Impairment of Intangible Assets | ||||||||||||||||||||||||
Annually management reviews the Trop AC tenant leases associated with the favorable lease arrangements for impairment. In the second quarter of 2012, management determined that there was a $1.8 million, net of accumulated amortization, impairment due to certain original tenant leases being terminated early. The remaining balance will continue to be amortized over the remaining useful life. | ||||||||||||||||||||||||
In the second quarter of 2012, the Company determined that certain lease arrangements valued upon adoption of fresh-start reporting were overstated; accordingly, the Company reduced the intangible asset, net of accumulated amortization, by $5.3 million as of June 30, 2012 (see Note 2 - Summary of Significant Accounting Policies - Favorable Lease Adjustment). |
IMPAIRMENT_CHARGES_OTHER_WRITE
IMPAIRMENT CHARGES, OTHER WRITE-DOWNS AND RECOVERIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Impairment Charges, Other Write-Downs and Recoveries [Abstract] | |||||||||||||
Impairment Charges, Other Write-Downs and Recoveries | IMPAIRMENT CHARGES, OTHER WRITE-DOWNS AND RECOVERIES | ||||||||||||
Impairment charges and other write-downs included in continuing operations consist of the following (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Impairment of barge | $ | — | $ | 439 | $ | — | |||||||
Impairment of intangible assets | 44 | — | 1,779 | ||||||||||
Loss on disposal of assets | 1,082 | 48 | 109 | ||||||||||
Gain on insurance recoveries | (5,610 | ) | — | (4,318 | ) | ||||||||
Total impairment charges, other write-downs and recoveries | $ | (4,484 | ) | $ | 487 | $ | (2,430 | ) | |||||
Jubilee Barge Impairment and Insurance Recovery | |||||||||||||
In January 2013, the Jubilee barge was damaged as a result of a high-wind storm. Due to the damage sustained the Company initially recorded a $0.4 million write-down of fixed assets which was included in the accompanying consolidated statement of income for the year ended December 31, 2013. The Company filed claims with its insurance carriers and received $0.7 million in insurance proceeds as of December 31, 2013. In January 2014, the Company settled the filed claims for $5.9 million and received the remaining $5.2 million in insurance proceeds related to the claims during the first quarter of 2014. As a result of the settlement, a gain of $4.4 million, net of expenses and write-downs, was included in the accompanying consolidated statement of income for the year ended December 31, 2014. | |||||||||||||
Superstorm Sandy Insurance Recovery | |||||||||||||
In October 2012, Superstorm Sandy forced a city-mandated closure of all casinos in Atlantic City for approximately five days. As a result, the Company filed a claim with the insurance carriers relating to the business interruption caused by Superstorm Sandy. The Company received a cash settlement of $1.3 million during the second quarter of 2014 which was recorded as a gain in the accompanying consolidated statement of income for the year ended December 31, 2014. | |||||||||||||
Flooding Related Expenses and Insurance Recoveries | |||||||||||||
Tropicana Greenville and Jubilee, both located in Greenville, Mississippi, closed for approximately 29 days in 2011, as a result of Mississippi River flooding. The Company filed claims with its insurance carriers for Tropicana Greenville and Jubilee under its property and business interruption policies. For the year ended December 31, 2012, the Company received $2.8 million in advances from its insurance carriers and substantially finalized its filed claims resulting in a gain of $4.3 million, net of expenses and write-downs, which is included in the accompanying consolidated statement of income for the year ended December 31, 2012. The proceeds are recognized in the accompanying consolidated statement of cash flows for the year ended December 31, 2012 as follows, $0.7 million in insurance proceeds for flood losses from business interruption in cash flows from operating activities and $2.1 million in insurance proceeds for flood losses in cash flows from investing activities. |
INVESTMENTS
INVESTMENTS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||
INVESTMENTS | INVESTMENTS | |||||||
The New Jersey Casino Control Act provides, among other things, for an assessment of licensees equal to 1.25% of gross gaming revenues and 2.5% of Internet gaming gross revenues in lieu of an investment alternative tax equal to 2.5% of gross gaming revenues and 5.0% on Internet gaming gross revenues. The Company may satisfy this investment obligation by investing in qualified eligible direct investments, by making qualified contributions or by depositing funds with the CRDA. Funds deposited with the CRDA may be used to purchase bonds designated by the CRDA or, under certain circumstances, may be donated to the CRDA in exchange for credits against future CRDA investment obligations. According to the Casino Control Act, funds on deposit with the CRDA are invested by the CRDA and the resulting income is shared two-thirds to the casino licensee and one-third to the CRDA. Further, the Casino Control Act requires that CRDA bonds be issued at statutory rates established at two-thirds of market value. | ||||||||
Investments consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
CRDA investment in bonds | $ | 16,409 | $ | 16,542 | ||||
Less unamortized discount | (4,306 | ) | (4,417 | ) | ||||
Less valuation allowance | (3,662 | ) | (3,463 | ) | ||||
CRDA deposits | 32,257 | 29,538 | ||||||
Less valuation allowance | (7,873 | ) | (7,201 | ) | ||||
CRDA direct investments | 1,292 | 4,022 | ||||||
Less valuation allowance | (1,292 | ) | (1,381 | ) | ||||
Total investments | $ | 32,825 | $ | 33,640 | ||||
The CRDA bonds have various contractual maturities that range from 2 to 40 years. Actual maturities may differ from contractual maturities because of prepayment rights. | ||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company charged $1.6 million, $1.0 million and $0.5 million, respectively, to general and administrative expenses on the accompanying consolidated statements of income related to the CRDA valuation allowances. In addition, the Company recognized interest income of $1.7 million, $0.6 million and $0.4 million, respectively, related to the CRDA investments for the years ended December 31, 2014, 2013 and 2012. |
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Assets [Abstract] | ||||||||
OTHER ASSETS | OTHER ASSETS | |||||||
Other assets consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Debt issuance costs | $ | 3,931 | $ | 4,304 | ||||
Tropicana Evansville prepaid rent | — | 2,475 | ||||||
Deposits | 3,951 | 4,812 | ||||||
Other | 2,922 | 4,379 | ||||||
Other assets | $ | 10,804 | $ | 15,970 | ||||
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||||||
Accrued expenses and other current liabilities consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accrued payroll and benefits | $ | 29,709 | $ | 24,697 | ||||
Accrued gaming and related | 16,687 | 10,564 | ||||||
Accrued taxes | 16,963 | 9,587 | ||||||
Predecessors' administrative tax claim | — | 9,792 | ||||||
Other accrued expenses and current liabilities | 15,578 | 9,715 | ||||||
Total accrued expenses and other current liabilities | $ | 78,937 | $ | 64,355 | ||||
The Predecessors' administrative tax claim amounts represented certain tax liabilities related to our Predecessors. In September 2014, the Company partially settled certain Predecessors' administrative tax claims resulting in an adjustment to accrued expenses and other current liabilities of $8.3 million (see Note 14 - Commitments and Contingencies for further discussion). In addition, in December 2014 the Company wrote-off the remaining $1.5 million related to the Predecessors' administrative tax claims due to the statutes of limitations expiring at the end of 2014. |
DEBT
DEBT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
DEBT | DEBT | |||||||
Debt consists of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
New Term Loan Facility, due 2020, interest at 4.0% at December 31, 2014 and 2013, net of unamortized discount of $1.3 and $1.5 million at December 31, 2014 and 2013. | $ | 294,992 | $ | 297,771 | ||||
Less current portion of debt | (3,000 | ) | (3,000 | ) | ||||
Total long-term debt, net | $ | 291,992 | $ | 294,771 | ||||
New Credit Facilities | ||||||||
On November 27, 2013, the Company entered into (i) a senior secured first lien term loan facility in an aggregate principal amount of $300 million, issued at a discount of 0.5% (the “New Term Loan Facility”) and (ii) a senior secured first lien revolving credit facility in an aggregate principal amount of $15 million (the “Revolving Facility” and, together with the New Term Loan Facility, the “New Credit Facilities”). Commencing on December 31, 2013, the New Term Loan Facility will amortize in equal quarterly installments in an amount of $750,000, with any remaining balance payable on the final maturity date of the New Term Loan Facility, which is November 27, 2020. Amounts under the Revolving Facility are available to be borrowed and re-borrowed until its termination on November 27, 2018. | ||||||||
Approximately $172.4 million of the net proceeds from the New Credit Facilities were used to repay in full the principal amounts outstanding under the Company's existing Credit Facilities. The Credit Facilities were terminated effective as of November 27, 2013. The Company also recognized a $4.9 million loss on debt retirement which related to the write-off of unamortized debt issuance costs and discounts. | ||||||||
The New Term Loan Facility accrues interest, at the Company's option, at a per annum rate equal to either (i) the LIBO Rate (as defined in the Credit Agreement) (subject to a 1.00% floor) plus an applicable margin equal to 3.00%, or (ii) the alternate base rate (as defined in the Credit Agreement) (subject to a 2.00% floor) plus an applicable margin equal to 2.00%; such that in either case, the applicable interest rate shall not be less than 4.0%. The Revolving Facility accrues interest, at the Company's option, at a per annum rate equal to either (i) the LIBO Rate plus an applicable margin ranging from 2.00% (if the total net leverage ratio is less than 2.50:1.00) to 2.50% (if the total net leverage ratio is greater than or equal to 3.00:1.00); or (ii) the alternate base rate plus an applicable margin ranging from 1.00% (if the total net leverage ratio is less than 2.50:1.00) to 1.50% (if the total net leverage ratio is greater than or equal to 3.00:1.00). The interest rate increases by 2.00% following certain defaults. As of December 31, 2014, the interest rate on the New Term Loan Facility was 4.0% and no amounts were outstanding under the Revolving Facility. | ||||||||
The New Credit Facilities are guaranteed by all of the Company's domestic subsidiaries and additional subsidiaries may be required to provide guarantees, subject to limited exceptions. The New Credit Facilities are secured by a first lien on substantially all assets of the Company and the domestic subsidiaries that are guarantors, with certain limited exceptions. Subsidiaries that become guarantors will be required, with certain limited exceptions, to provide first liens and security interests in substantially all their assets to secure the New Credit Facilities. | ||||||||
At the election of the Company and subject to certain conditions, including a maximum senior secured net leverage ratio of 3.25:1.00, the amount available under the New Credit Facilities may be increased, which increased amount may be comprised of additional term loans and revolving loans. | ||||||||
The New Term Loan Facility may be prepaid at the option of the Company at any time without penalty (other than customary LIBO Rate breakage fees). The Company is required to make mandatory payments of the New Credit Facilities with (i) net cash proceeds of certain asset sales (subject to reinvestment rights), (ii) net cash proceeds from certain issuances of debt and equity (with certain exceptions), (iii) up to 50% of annual excess cash flow (as low as 0% if the Company's total leverage ratio is below 2.75:1.00), and (iv) certain casualty proceeds and condemnation awards (subject to reinvestment rights). | ||||||||
Key covenants binding the Company and its subsidiaries include (i) limitations on indebtedness, liens, investments, acquisitions, asset sales, dividends and other restricted payments, and affiliate and extraordinary transactions, and (ii) if, as of the last day of any fiscal quarter, the amount of outstanding revolving loans exceed 35% of the permitted borrowing under the Revolving Facility, compliance with a maximum senior secured net leverage ratio test of 3.25:1.00. Key default provisions include (i) failure to repay principal, interest, fees and other amounts owing under the facility, (ii) cross default to certain other indebtedness, (iii) the rendering of certain judgments against the Company or its subsidiaries, (iv) failure of security documents to create valid liens on property securing the New Credit Facilities and to perfect such liens, (v) revocation of casino, gambling, or gaming licenses, (vi) the Company's or its material subsidiaries' bankruptcy or insolvency; and (vii) the occurrence of a Change of Control (as defined in the Credit Agreement). Many defaults are also subject to cure periods prior to such default giving rise to the right of the lenders to accelerate the loans and to exercise remedies. The Company was in compliance with the covenants of the New Term Loan Facility at December 31, 2014. | ||||||||
Scheduled maturities of the Company's long-term debt at December 31, 2014 are as follows (in thousands): | ||||||||
Years ending December 31, | ||||||||
2015 | $ | 3,000 | ||||||
2016 | 3,000 | |||||||
2017 | 3,000 | |||||||
2018 | 3,000 | |||||||
2019 | 3,000 | |||||||
Thereafter | 281,250 | |||||||
Total scheduled maturities | 296,250 | |||||||
Unamortized debt discount | (1,258 | ) | ||||||
Total long-term debt | $ | 294,992 | ||||||
Credit Facilities | ||||||||
In March 2012, the Company entered into the credit facilities (the "Credit Facilities"), which consisted of (i) a senior secured first lien term loan facility in an aggregate principal amount of $175 million, issued at a discount of 2% (the "Term Loan Facility") and (ii) a cash collateralized letter of credit facility in a maximum aggregate amount of $15 million (the "Letter of Credit Facility"). Commencing on June 30, 2012 under the Credit Facilities, the Term Loan Facility required quarterly principal payments of 0.25% of the original principal amount with any remaining outstanding amounts due on the maturity date, March 16, 2018. The Term Loan Facility was secured by substantially all of the Company's assets and was guaranteed by all of the Company's domestic subsidiaries. A portion of the net proceeds from the Term Loan Facility was used to repay in full the amounts outstanding under the Exit Facility, which totaled approximately $107.7 million in repaid principal, accrued and unpaid interest and the applicable prepayment penalty. During the year ended December 31, 2012 the Company recognized a $12.8 million loss on debt retirement which consists of a $2.0 million prepayment penalty and a $10.8 million write-off of unamortized debt issuance costs and discounts. The obligations under the Term Loan Facility accrued interest as defined in the Term Loan Facility such that the applicable interest rate was not less than 7.50%. In November 2013, the Credit Facilities were paid in full and terminated. | ||||||||
Exit Facility | ||||||||
On December 29, 2009, TEI entered into a credit facility (the "Exit Facility") with multiple lenders including entities affiliated with Mr. Icahn ("Icahn Affiliates"), as further discussed in Note 13 - Related Party Transactions, which consisted of (i) a $130 million senior secured term loan credit facility issued at a discount of 7% (the "Exit Term Loan Facility") and (ii) a $20 million senior secured revolving credit facility (the "Exit Revolving Facility"). The Exit Facility would have matured on March 8, 2013. The Exit Term Loan Facility required mandatory principal payments of $1.3 million annually on March 8, 2011 and 2012. In addition to the required principal payments the Company made a $25.0 million principal pre-payment in December 2011 and recognized a $2.4 million loss related to that prepayment. The Exit Revolving Facility generally did not require mandatory borrowing or principal payments. Additionally, the Company issued 1,312,500 Penny Warrants to purchase its Common Stock at a strike price of $0.01 to participating lenders under the Exit Facility. All amounts outstanding under the Exit Facility accrued interest at a rate per annum of 15% so long as no default or event of default had occurred and was continuing, or at a rate per annum of 17% in the event that a default or event of default has occurred and is continuing. In addition, the Company was required to pay an annual administrative fee of $100,000 and an unused line fee equal to 0.75% of the daily average undrawn portion of the Revolving Facility. The Exit Facility was guaranteed by substantially all the existing and future subsidiaries of TEI. In March 2012 the Company paid in full the remaining outstanding amounts and terminated the Exit Facility. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS |
Icahn Affiliates | |
On May 4, 2009, pursuant to the Plan, the Company entered into a commitment letter (the "Commitment Letter") with Icahn Affiliates, pursuant to which Icahn Affiliates committed to provide, on a fully underwritten basis, the Exit Facility. At the time of the repayment of the Exit Facility in March 2012, an entity affiliated with Mr. Icahn was a lender under the Exit Facility and held more than 50% of the loans extended under the Exit Facility. In addition, another entity affiliated with Mr. Icahn was the administrative agent and collateral agent under the Exit Facility. In March 2012, when the Exit Facility was repaid in full, the Company paid a prepayment penalty to the lenders of $2.0 million and expensed the remaining unamortized debt issuance costs of $2.7 million to loss on debt retirement in the year ended December 31, 2012. | |
Insight Portfolio Group LLC (formerly Icahn Sourcing, LLC) | |
Icahn Sourcing, LLC ("Icahn Sourcing") is an entity formed by Mr. Icahn in order to maximize the potential buying power of a group of entities with which Mr. Icahn has a relationship in negotiating rates with a wide range of suppliers of goods, services and tangible and intangible property. The Company was a member of the buying group in 2012 and, as such, was afforded the opportunity to purchase goods, services and property from vendors with whom Icahn Sourcing had negotiated rates and terms. Icahn Sourcing did not guarantee that the Company would purchase any goods, services or property from any such vendors, and the Company was under no obligation to do so. Prior to December 31, 2012, the Company did not pay Icahn Sourcing any fees or other amounts with respect to the buying group arrangement. | |
Effective January 1, 2013, Icahn Sourcing restructured its ownership and changed its name to Insight Portfolio Group LLC (“Insight Portfolio Group”). In connection with the restructuring, the Company acquired a minority equity interest in Insight Portfolio Group and agreed to pay a portion of Insight Portfolio Group's operating expenses in 2013. In addition to the minority equity interest held by the Company, a number of other entities with which Mr. Icahn has a relationship also acquired equity interests in Insight Portfolio Group and also agreed to pay certain of Insight Portfolio Group's operating expenses in 2013. The Company may purchase a variety of goods and services as a member of the buying group at prices and on terms that the Company believes are more favorable than those which would be achieved on a stand-alone basis. The Company paid Insight Portfolio Group $0.3 million in each of the years ended December 31, 2014 and 2013. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||
Leases | ||||
MontBleu Lease | ||||
The Company has a lease agreement with respect to the land and building which MontBleu operates, through December 31, 2028. Under the terms of the lease, rent is $333,333 per month, plus 10% of annual gross revenues in excess of $50 million through December 31, 2011. After December 31, 2011, rent is equal to the greater of (i) $333,333 per month as increased by the same percentage that the consumer price index has increased from 2009 thereafter, plus 10% of annual gross revenues in excess of a Breakpoint as defined in the terms of the lease agreement, or (ii) 10% of annual gross revenues. In connection with fresh-start reporting, the Company recognized an unfavorable lease liability of $9.6 million related to this lease that will be amortized on a straight-line basis to rental expense over the remaining term of the lease. The unfavorable lease liability balance was $7.2 million and $7.7 million as of December 31, 2014 and 2013, respectively, of which $6.7 million and $7.2 million is included in other long-term liabilities on the accompanying consolidated balance sheets as of December 31, 2014 and 2013, respectively. | ||||
In October 2014, Columbia Properties Tahoe, LLC (“CPT”), the Company’s subsidiary that owns MontBleu, entered into a lease amendment with Edgewood Companies (“Landlord”) pursuant to which CPT agreed to expend $24.0 million by March 31, 2016 on capital renovation projects in exchange for certain lease modifications including future capital expenditure requirements and a Landlord acknowledgment that upon completion of the capital renovation project the property will satisfy the “first class” facility requirements of the lease. | ||||
Tropicana Evansville Land Lease | ||||
The Company leases from the City of Evansville, Indiana approximately ten acres of the approximately 20 acres on which Tropicana Evansville is situated. Under the terms of the lease, the Company may extend the lease term through November 30, 2040 by exercising up to seven five-year renewal options. In March 2010, the Company amended the Tropicana Evansville land lease and exercised its second of its seven renewal options which extends the lease term through November 2015. Under the terms of the lease renewal, effective December 1, 2010, the Company is required to pay a percentage of the adjusted gross receipts ("AGR") for the year in rent with a minimum annual rent of no less than $2.0 million. The percentage rent shall be equal to 2% of the AGR up to $25 million, plus 4% of the AGR in excess of $25 million up to $50 million, plus 6% of the AGR in excess of $50 million up to $75 million, plus 8% of the AGR in excess of $75 million up to $100 million and plus 12% of the AGR in excess of $100 million. In accordance with the lease renewal, during the 2010 the Company paid a total of $13.5 million for the prepayment of rent to the City of Evansville for the period between January 2011 and December 2015. | ||||
Belle of Baton Rouge Lease | ||||
Belle of Baton Rouge leases certain land and buildings under separate leases, with annual payments of $0.2 million. In addition, Belle of Baton Rouge leases a parking lot with annual base rent of approximately $0.4 million, plus 0.94% of annual adjusted gross revenue in excess of $45 million but not to exceed $80 million through August 2015. | ||||
Tropicana Greenville Lease | ||||
Tropicana Greenville leases approximately four acres of land on which the casino and parking facilities of the casino are situated. Tropicana Greenville is required to pay an amount equal to 2% of its monthly gross gaming revenues in rent, with a minimum monthly payment of $75,000. In addition, in any given year in which annual gross gaming revenues exceed $36.6 million, Tropicana Greenville is required to pay 8% of the excess amount as rent pursuant to the terms of the lease. The current lease expires in 2019 with options to extend its term through 2044. | ||||
In October 2013, Tropicana Greenville entered into an additional lease agreement with the City of Greenville, Mississippi, for a parcel of land adjacent to Tropicana Greenville upon which the Company intends to construct a parking lot in conjunction with its plans to expand the Tropicana Greenville casino. The initial term of the lease expires in August 2020, and the Company has several options to extend the lease for a total term of up to twenty-five years. Initial annual rent is $0.4 million with rent adjustments in option periods based upon the Consumer Price Index. | ||||
Tropicana Aruba Land Lease | ||||
The Company assumed a land lease in August 2010 for approximately 14 acres of land on which Tropicana Aruba is situated through July 30, 2051. Under the terms of the land lease, the annual rent is $93,000. | ||||
Operating Leases | ||||
In addition to the above land and building leases, the Company leases various land parcels, buildings and equipment used in its operations including the office space for its corporate office in Las Vegas, Nevada. Future minimum rental payments, excluding the prepayment of rent to the City of Evansville, that have initial or remaining non-cancelable lease terms (excluding renewable periods) in excess of one year as of December 31, 2014 are as follows (in thousands): | ||||
Years ending December 31, | ||||
2015 | $ | 6,761 | ||
2016 | 6,525 | |||
2017 | 6,102 | |||
2018 | 6,018 | |||
2019 | 5,929 | |||
Thereafter | 44,326 | |||
Total | $ | 75,661 | ||
Rent expense included in continuing operations totaled approximately $15.1 million, $14.0 million and $16.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||
Other Commitments and Contingencies | ||||
2011 New Jersey Legislation | ||||
On February 1, 2011, New Jersey enacted legislation (the "Tourism District Bill") that delegates redevelopment authority and creation of a master plan to the CRDA and allowed the CRDA the ability to enter into a five year public private partnership with the casinos in Atlantic City that have formed the Atlantic City Alliance ("ACA") to jointly market the city. The legislation obligates the Atlantic City casinos either through the ACA or, if not a member of the ACA, through individual assessments, to provide funding for the Tourism District Bill in the aggregate amount of $30.0 million annually through 2016. Each Atlantic City casino's proportionate share of the assessment will be based on the gross revenue generated in the preceding fiscal year. The Company paid $3.2 million, $2.4 million and $2.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company estimates its portions of these industry obligations to be approximately 11.2%. | ||||
New Jersey CRDA | ||||
Under current New Jersey law, the New Jersey Casino Control Commission imposes an annual tax of 8% on gross casino revenue and commencing with the operations of Internet Gaming, an annual tax of 15% on Internet gaming gross revenue. Pursuant to New Jersey law, casino license holders or Internet gaming permit holders (as applicable) are required to invest an additional 1.25% of gross casino revenue and 2.5% of Internet gaming gross revenue for the purchase of bonds to be issued by the CRDA or to make other approved investments equal to those amounts; and in the event the investment requirement is not met, the casino license holder or Internet gaming permit holder (as applicable) is subject to a tax of 2.5% on gross casino revenue and 5.0% on Internet gaming gross revenue. As mandated by New Jersey law, the interest rate of the CRDA bonds purchased by the licensee will be two thirds of the average market rate for bonds available for purchase and published by a national bond index at the time of the CRDA bond issuance. | ||||
Wimar and CSC Administrative Expense Claims | ||||
On March 31, 2009, Wimar Tahoe Corporation ("Wimar") and Columbia Sussex Corporation ("CSC") filed separate proceedings with the Bankruptcy Court related to administrative expense claims against the Predecessors. On August 4, 2010, Wimar and CSC separately filed motions for summary judgment seeking payment on account of these claims from the Company totaling approximately $5.4 million, which was recorded as a liability upon emergence from bankruptcy and is included in accounts payable in our accompanying consolidated balance sheets as of December 31, 2014 and 2013. In its objection to Wimar and CSC's motions for summary judgment, the Company disputes the administrative expense and/or priority status of certain amounts claimed and also contends that any payment to CSC or Wimar should await the resolution of the adversary proceeding instituted by Lightsway Litigation Services, LLC, as Trustee of the Tropicana Litigation Trust established in the voluntary petitions for relief under Chapter 11 of the Bankruptcy Code, against CSC and Wimar. On June 24, 2011, the Company, CSC, and Wimar, along with certain other parties, participated in mediation concerning Wimar and CSC's claims, but the mediation terminated without resolution of the claims. Oral argument on the summary judgment motions were conducted on September 27, 2011 and November 22, 2011 the parties are awaiting the Court's decision regarding these motions. | ||||
Tropicana AC Tax Appeal Settlement | ||||
In January 2013 we settled outstanding real estate tax appeals involving our Tropicana AC property with the City of Atlantic City. The settlement involves the tax years 2008 through 2012 and also covers negotiated real estate assessments for 2013 and 2014. Under the terms of the settlement, Tropicana AC was to receive a $49.5 million refund in the form of credits against annual real estate tax bills beginning in 2013 and ending in 2017. The credits were to be front-loaded in 2013 and 2014 so that after the credits are applied, Tropicana paid $1.8 million in taxes in 2013. The Company utilized $16.0 million of credits as a reduction to operating expenses in the year ended December 31, 2013. In addition, the Company expensed $4.1 million in professional fees related to this settlement in the year ended December 31, 2013. In January 2014, the Company received $31.7 million in cash as payment to satisfy future credits which amount is included in the line item called Property tax settlement in the accompanying consolidated statement of income for the year ended December 31, 2014. | ||||
UNITE HERE | ||||
In September 2011, the collective bargaining agreement between Tropicana AC and UNITE HERE Local 54 expired and Tropicana AC continued to voluntarily contribute to the UNITE HERE National Retirement Fund Rehabilitation Plan (the "NRF") after the September 2011 expiration date through February 25, 2012 (at which time Tropicana AC declared an impasse in the collective bargaining negotiations and ceased contributions to the NRF). UNITE HERE subsequently filed a charge with the National Labor Relations Board (the "NLRB") alleging that Tropicana AC's declarations of an impasse violated the National Labor Relations Act. Tropicana AC contested this charge. In addition, in January 2012 the NRF's legal counsel sent a letter to Tropicana AC asserting that any withdrawal from the NRF would not be entitled to the NRF's "Free Look Rule" and would trigger a withdrawal liability and in November 2013 Tropicana AC was advised by UNITE HERE that the NRF had estimated Tropicana AC’s withdrawal liability from the NRF to be approximately $4 million. In May 2014 Tropicana AC and UNITE HERE Local 54 entered into a new collective bargaining agreement as well as a settlement agreement pursuant to which, among other things, the NLRB charge and related charges filed by both parties were withdrawn. In addition, Tropicana AC entered into a settlement agreement with the NRF pursuant to which Tropicana AC paid approximately $4 million to the NRF in settlement of all outstanding withdrawal liability claims. | ||||
In July 2014, Tropicana AC and UNITE HERE each provided notice to the other of their respective intentions to renegotiate their existing collective bargaining agreement due to expire on September 14, 2014. Subsequently, UNITE HERE requested that Tropicana AC extend the collective bargaining agreement for an additional six months, which request was rejected by Tropicana AC. The collective bargaining agreement expired on September 14, 2014. Tropicana AC has requested that UNITE HERE provide Tropicana AC with detailed information related to the UNITE HERE Health Fund, which information is essential for Tropicana AC to prepare for negotiation of a new collective bargaining agreement. UNITE HERE has yet to provide Tropicana AC with any of the requested information. | ||||
Indiana Gross Income Tax Appeals | ||||
In September 2014 we settled gross income tax litigation pending with the State of Indiana related to our Predecessors, Aztar Missouri Gaming Corporation ("AMO") and Aztar Indiana Gaming Corporation and its successor, Aztar Indiana Gaming, LLC (collectively, "AIN") pursuant to which we paid the State of Indiana a settlement in the amount of $0.6 million and withdrew gross income tax refund claims related to AIN and AMO for the tax years 2004 through 2008 in exchange for a dismissal of tax assessments against AIN for the tax year 2008, and an exchange of mutual releases between the parties related to Indiana gross income tax assessments and refund claims for the tax years 2004 through 2008. As a result, the Company recorded adjustments to both its Predecessors' administrative tax claim receivable and accrual in the amount of $8.3 million (see Note 5 - Receivables and Note 11 - Accrued Expenses and Other Current Liabilities). | ||||
Predecessor Claim Settlements | ||||
In December 2014, the Company settled certain claims related to the Predecessors which resulted in a one time gain of $52.7 million included in the accompanying consolidated statement of income during the year ended December 31, 2014. | ||||
Litigation in General | ||||
The Company is a party to various litigation that arises in the ordinary course of business. In the opinion of management, all pending legal matters are either adequately covered by insurance or, if not insured, will not have a material adverse effect on the financial position or the results of operations of the Company. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY |
Common Stock | |
The Company is authorized to issue up to 100 million shares of its common stock, $0.01 par value per share ("Common Stock"), of which 26,312,500 shares were issued and outstanding as of December 31, 2014. Each holder of Common Stock is entitled to one vote for each share held of record on each matter submitted to a vote of stockholders. The holders of Common Stock have no cumulative voting rights, preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the Common Stock. Subject to any preferences that may be granted to the holders of the Company's preferred stock, each holder of Common Stock is entitled to receive ratably such dividends as may be declared by the Board of Directors out of funds legally available therefore, as well as any distributions to the stockholders and, in the event of the Company's liquidation, dissolution or winding up is entitled to share ratably in all the Company's assets remaining after payment of liabilities. | |
Preferred Stock | |
The Company is authorized to issue up to 10 million shares of preferred stock, $0.01 par value per share, of which none were issued as of December 31, 2014. The Board of Directors, without further action by the holders of Common Stock, may issue shares of preferred stock in one or more series and may fix or alter the rights, preferences, privileges and restrictions, including the voting rights, redemption provisions (including sinking fund provisions), dividend rights, dividend rates, liquidation rates, liquidation preferences, conversion rights and the description and number of shares constituting any wholly unissued series of preferred stock. Except as described above, the Board of Directors, without further stockholder approval, may issue shares of preferred stock with rights that could adversely affect the rights of the holders of Common Stock. The issuance of shares of preferred stock under certain circumstances could have the effect of delaying or preventing a change of control of TEI or other corporate action. | |
Warrants | |
In accordance with the Plan, holders of the Predecessors' $960 million of 95/8% Senior Subordinated Notes and general unsecured claims received warrants to purchase 3,750,000 shares of Common Stock ("Ordinary Warrants"). The Ordinary Warrants have a four year, six month term and an exercise price of $52.44 per share. The Company evaluated the Ordinary Warrants under current accounting pronouncements and determined they were properly classified as equity on the accompanying consolidated balance sheets. The Company valued the Ordinary Warrants using the Black-Scholes option valuation model assuming a life of 4.5 years, a volatility factor of 61% and a risk free interest rate of 2.36%. The resulting value of $11.5 million was recorded as a reorganization item of the Predecessors statements of operations. As of September 2014, the term on the Ordinary Warrants have expired and the value of the warrants are included in additional paid in capital. | |
In addition, pursuant to the terms of the Exit Facility, the Company issued Penny Warrants to purchase 1,312,500 shares of Common Stock at a strike price of $0.01 to participating lenders on the Effective Date. The Penny Warrants had a term of 3 months. The Company valued the Penny Warrants using the Black-Scholes option valuation model assuming a life of 0.24 years, a volatility factor of 41% and a risk free rate of 0.16%. During the Successor Period, all the 1,312,500 Penny Warrants were exercised at $0.01 per share. The resulting value of $19.5 million was treated as a debt discount and the unamortized balance was netted against the carrying value of the Exit Facility prior to March 2012. The discount was amortized at a constant rate applied to the outstanding balance of the Exit Facility with a corresponding increase in non-cash interest expense. The unamortized balance of $5.5 million was included in the loss on debt retirement in March 2012 when the Exit Facility was repaid in full. | |
Significant Ownership | |
At December 31, 2014, Mr. Icahn indirectly controlled approximately 67.9% of the voting power of the Company's Common Stock and, by virtue of such stock ownership, is able to control or exert substantial influence over the Company, including the election of directors. The existence of a significant stockholder may have the effect of making it difficult for, or may discourage or delay, a third party from seeking to acquire a majority of the Company's outstanding Common Stock. Mr. Icahn's interests may not always be consistent with the Company's interests or with the interests of the Company's other stockholders. Mr. Icahn and entities controlled by him may also pursue acquisitions or business opportunities that may or may not be complementary to the Company's business. To the extent that conflicts of interest may arise between the Company and Mr. Icahn and his affiliates, those conflicts may be resolved in a manner adverse to the Company or its other shareholders. |
BASIC_AND_DILUTED_NET_INCOME_P
BASIC AND DILUTED NET INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET INCOME PER SHARE | BASIC AND DILUTED NET INCOME PER SHARE |
The Company computes net income per share in accordance with accounting guidance that requires presentation of both basic and diluted earnings per share ("EPS") on the face of the income statement. Basic EPS is computed by dividing net income for the period by the weighted average number of shares outstanding during the period. Diluted EPS is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, increased by potentially dilutive common shares that were outstanding during the period. Potentially dilutive common shares include warrants. Diluted EPS excludes all potential dilutive shares if their effect is anti-dilutive. | |
Excluded from the calculation of diluted EPS for 2013 and 2012 are the Ordinary Warrants to purchase 3,750,000 shares of our common stock as they were anti-dilutive. The Ordinary Warrants expired in 2014. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS | ||||||||||||||||||||
Retirement Plans | |||||||||||||||||||||
The Company does not sponsor a defined benefit plan. The Company offers a defined contribution 401(k) plan, which covers substantially all employees who are not covered by a collective bargaining agreement and who reach certain age and length of service requirements. Plan participants can elect to defer before tax compensation through payroll deductions. Such deferrals are regulated under Section 401(k) of the Internal Revenue Code. The plan allows for the Company to make an employer contribution on the employee's behalf at the Company's discretion. The Company commenced employer contributions at Lumière Place upon acquisition of the property on April 1, 2014. The Lumière Place contributions were funded from forfeited amounts included in our 401(k) plan. The Company expensed no matching contributions in 2014, 2013 or 2012. | |||||||||||||||||||||
Multiemployer Pension Plans | |||||||||||||||||||||
At December 31, 2014 and 2013 we had collective bargaining agreements with unions covering certain employees. Since February 2012, the Company has not participated in any union-sponsored, collectively bargained, multiemployer defined benefit pension plans. The risks of participating in multiemployer pension plans are different from single-employer pension plans in the following aspects: (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers, (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers, and (iii) if the Company stops participating in some of its multiemployer pension plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. | |||||||||||||||||||||
The Company made no contributions to these multiemployer plans for the years ended December 31, 2014 and 2013, and $0.5 million for the year ended December 31, 2012. The contributions made in 2012 do not represent more than 5% of total contribution to those plans. The Company's participation in the individually significant plan is outlined in the table below: | |||||||||||||||||||||
Pension Fund | EIN/Pension Plan number | Pension Protection Act Status | Contributions | Funding Improvement Plan/ Rehabilitation Plan Status | Surcharge Paid | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
UNITE HERE National Retirement Fund | 13-6130178 / 001 | Red (a) | $ | — | $ | — | $ | 461 | Implemented | No | |||||||||||
(a) On March 31, 2010, this fund was certified in critical status under the federal multiemployer plan funding laws pursuant to the Pension Protection Act of 2006. | |||||||||||||||||||||
Under the UNITE HERE National Retirement Fund Rehabilitation Plan (the "NRF"), the Company paid increased contributions from January 2012 until the Company withdrew from the plan on February 25, 2012. Subsequent to the withdrawal, the NFR asserted a withdrawal liability claim against the Company in the approximate amount of $4 million. In May 2014 Tropicana AC and UNITE HERE Local 54 entered into a new collective bargaining agreement as well as a settlement agreement pursuant to which, among other things, the Company began to accrue contributions towards a new single employer Variable Annuity Pension Plan for certain Tropicana AC Local 54 employees. In addition, Tropicana AC entered into a settlement agreement with the NRF pursuant to which Tropicana AC paid approximately $4 million to the NRF in settlement of all outstanding withdrawal liability claims. | |||||||||||||||||||||
In April 2012, the International Union of Operating Engineers Local 68 Pension Fund (the “Local 68 Pension Plan”) asserted that Tropicana AC withdrew from the Local 68 Pension Plan on March 7, 2010 and therefore owed approximately $4.2 million in withdrawal liability to the Local 68 Pension Fund for periods predating March 7, 2010. Tropicana AC did not become a participating employer in the Local 68 Pension Fund until March 8, 2010 and continued its participation through June 30, 2010 at which time it withdrew and was assessed an approximate $0.3 million withdrawal liability which it paid in 2011. Tropicana AC does not believe it has any liability for and is contesting the Local 68 Pension Fund claims for withdrawal liability for any periods prior to March 7, 2010. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS | |||||||||||
As discussed in Note 1- Basis of Presentation and Organization, in April 2013, the Company entered into an agreement to sell substantially all of the assets and certain liabilities of River Palms. In accordance with accounting guidance for assets held for sale, the results of operations for River Palms are presented as discontinued operations in the accompanying consolidated statements of income while its assets and liabilities are presented as held for sale in the accompanying consolidated balance sheet as of December 31, 2013. The cash flows of the discontinued operations are included with the cash flows of continuing operations in the accompanying consolidated statements of cash flows for all periods presented. In October 2013, the Company notified the buyers that it had elected to terminate the agreement to sell River Palms, pursuant to the terms of the agreement. | ||||||||||||
The Company continued to actively market the property and on July 1, 2014, sold River Palms to Nevada Restaurant Services, Inc. and its affiliate, Laughlin Hotel, LLC. Pursuant to the terms of the asset purchase agreement substantially all of the assets associated with the operation of River Palms were sold for approximately $6.8 million in cash and the assumption of certain liabilities. Concurrently with the sale, River Palms was leased back until September 2014 when the Company terminated the lease and discontinued its operations. The sale resulted in a loss of $0.2 million which is included in the loss from discontinued operations for the year ended December 31, 2014. | ||||||||||||
The assets and liabilities of River Palms are presented as held for sale as follows (in thousands, unaudited): | ||||||||||||
2013 | ||||||||||||
Cash | $ | 2,138 | ||||||||||
Receivables, net | 245 | |||||||||||
Property and equipment, net | 6,147 | |||||||||||
Other assets | 719 | |||||||||||
Total assets held for sale | $ | 9,249 | ||||||||||
Accounts payable | $ | 411 | ||||||||||
Accrued expenses and other liabilities | 1,237 | |||||||||||
Total liabilities related to assets held for sale | $ | 1,648 | ||||||||||
Operating results of discontinued operations are summarized as follows (in thousands, unaudited): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net revenues | $ | 11,964 | $ | 17,484 | $ | 19,430 | ||||||
Operating costs and expenses | (12,954 | ) | (18,721 | ) | (20,703 | ) | ||||||
Impairment of discontinued operations | — | (2,611 | ) | — | ||||||||
Loss from operations | (990 | ) | (3,848 | ) | (1,273 | ) | ||||||
Income (loss) from disposal of discontinued operations, net | (233 | ) | — | — | ||||||||
Income tax benefit (expense) | (406 | ) | 104 | (540 | ) | |||||||
Loss from discontinued operations, net | $ | (1,629 | ) | $ | (3,744 | ) | $ | (1,813 | ) | |||
Preliminary Loss Related to Sale | ||||||||||||
The Company compared its carrying value of River Palms to the estimated sale price less estimated costs to complete the sale and recorded a preliminary loss on the sale of River Palms of $2.6 million which is included in the loss from discontinued operations for the year ended December 31, 2013. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||
The Company files a consolidated federal income tax return and for the years ended December 31, 2014, 2013 and 2012 is the common parent for income tax purposes. | ||||||||||||
The income tax expense (benefit) attributable to net income from continuing operations before income taxes is as follows (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 33,348 | $ | — | $ | (313 | ) | |||||
State | 5,403 | 2,443 | 3,268 | |||||||||
Total current | 38,751 | 2,443 | 2,955 | |||||||||
Deferred: | ||||||||||||
Federal | (176,140 | ) | 84 | (84 | ) | |||||||
State | (2,620 | ) | 7 | (7 | ) | |||||||
Total deferred | (178,760 | ) | 91 | (91 | ) | |||||||
Expense (benefit) from income taxes | $ | (140,009 | ) | $ | 2,534 | $ | 2,864 | |||||
A reconciliation of the federal income tax statutory rate and the effective tax rate is as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Employment credits | (0.1 | ) | (2.0 | ) | — | |||||||
Permanent differences | 2.8 | 1.3 | 1.8 | |||||||||
Disallowed foreign activity | 0.2 | 1.2 | 4.2 | |||||||||
State tax | 1.3 | 7.4 | 9.4 | |||||||||
Valuation allowance | (163.2 | ) | (32.5 | ) | (38.4 | ) | ||||||
Effective tax rate | (124.0 | )% | 10.4 | % | 12 | % | ||||||
The major tax-effected components of the net deferred tax asset (liability) are as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Receivables | $ | 4,550 | $ | 4,787 | ||||||||
Accrued compensation | 6,519 | 3,772 | ||||||||||
Reserves/accrued liabilities | 3,392 | 1,991 | ||||||||||
Net operating loss carryforward | 61,756 | 68,368 | ||||||||||
Property and equipment | 131,405 | 135,385 | ||||||||||
Credits/carryforwards | 132 | 2,320 | ||||||||||
Other assets | 2,727 | 2,661 | ||||||||||
Gross deferred tax assets | 210,481 | 219,284 | ||||||||||
Valuation allowance | (26,409 | ) | (214,606 | ) | ||||||||
Total deferred tax assets | $ | 184,072 | $ | 4,678 | ||||||||
Deferred tax liabilities: | ||||||||||||
Deductible prepaid expenses | $ | (4,256 | ) | $ | (3,529 | ) | ||||||
Intangible assets | (20,715 | ) | (20,808 | ) | ||||||||
Total deferred tax liabilities | (24,971 | ) | (24,337 | ) | ||||||||
Net deferred tax assets (liabilities) | $ | 159,101 | $ | (19,659 | ) | |||||||
As of March 8, 2010, the Company had various net deferred tax assets made up primarily of the expected future tax benefit of net operating loss carryforwards and excess tax basis not yet deductible for tax purposes. A valuation allowance was provided in full against these net deferred tax assets upon the Company’s emergence from bankruptcy. During 2014, the Company reduced the valuation allowance related to the remaining net tax assets by $188.2 million. In connection with determining the amount of the reduction of the valuation allowance, the Company identified an immaterial amount of $3.5 million in the initial measurement of the deferred tax asset and related valuation allowance. This difference is reflected in the 2013 amounts above. The reduction in the valuation allowance is a result of the Company analyzing all positive and negative evidence and concluding that it is more likely than not that it will generate future taxable income to utilize this portion of net deferred tax assets. The benefit from this reduction in the valuation allowance was recorded as an income tax benefit for 2014. | ||||||||||||
The Company has federal net operating loss carryforwards pursuant to the acquisition of Adamar. Internal Revenue Code Section 382 ("Section 382") places certain limitations on the annual amount of net operating loss carryforwards that can be utilized when a change of ownership occurs. The Company believes its acquisition of Adamar was a change in ownership pursuant to Section 382. As a result of the annual limitation, the net operating loss carryforward amount available to be used in future periods is approximately $161.2 million and will begin to expire in 2028 and forward. | ||||||||||||
Accounting for uncertainty in income taxes prescribes a threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The accounting standards also require that the tax positions be assessed using a two-step process. A tax position is recognized if it meets a "more-likely-than-not" threshold and is measured at the largest amount of benefit that is greater than 50% likely of being realized. Uncertain tax positions must be reviewed at each balance sheet date. Liabilities recognized as a result of this analysis must generally be recorded separately from any current or deferred income tax accounts. | ||||||||||||
A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits, beginning of period | $ | — | $ | — | $ | — | ||||||
Reductions based on tax positions related to the prior year | — | — | — | |||||||||
Reductions due to lapse of statute of limitations | — | — | — | |||||||||
Unrecognized tax benefits, end of period | $ | — | $ | — | $ | — | ||||||
The entire balance of unrecognized tax benefits, if recognized, would affect the effective tax rate. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. In the next twelve months, the Company does not expect the liability for the unrecognized tax benefits to change significantly. | ||||||||||||
The Company files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. Generally, the statute of limitations for examination of TEI's United States federal and state income tax returns is open for the years ended December 31, 2010. Management believes that adequate provision for income taxes and interest has been recorded in the accompanying financial statements. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION | ||||||||||||
The Company views each property as an operating segment which we aggregate by region in order to present our reportable segments: (i) East, (ii) Central, (iii) West, (iv) and South and other. The Company uses operating income to compare operating results among its segments and allocate resources. As discussed in Note 1 - Basis of Presentation and Organization, on April 1, 2014, the Company completed its previously announced acquisition of Lumière Place and aggregated its results into the Central region. | |||||||||||||
The following table highlights by segment our net revenues and operating income, and reconciles operating income to income from continuing operations before income taxes for the years ended December 31, 2014, 2013 and 2012 (in thousands). | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net revenues: | |||||||||||||
East | $ | 303,079 | $ | 244,471 | $ | 264,037 | |||||||
Central | 247,784 | 120,459 | 122,502 | ||||||||||
West | 103,147 | 101,769 | 101,087 | ||||||||||
South and other | 92,651 | 90,968 | 105,732 | ||||||||||
Corporate | — | — | — | ||||||||||
Total net revenues | $ | 746,661 | $ | 557,667 | $ | 593,358 | |||||||
Operating income: | |||||||||||||
East | $ | 44,121 | $ | 11,188 | $ | 2,059 | |||||||
Central | 30,119 | 27,977 | 27,002 | ||||||||||
West | 13,564 | 11,467 | 12,676 | ||||||||||
South and other | 10,337 | 4,748 | 20,413 | ||||||||||
Corporate | (27,018 | ) | (12,617 | ) | (9,145 | ) | |||||||
Total operating income | $ | 71,123 | $ | 42,763 | $ | 53,005 | |||||||
Reconciliation of operating income to income from continuing operations before income taxes: | |||||||||||||
Operating income | $ | 71,123 | $ | 42,763 | $ | 53,005 | |||||||
Interest expense | (12,873 | ) | (14,331 | ) | (17,161 | ) | |||||||
Interest income | 1,957 | 846 | 777 | ||||||||||
Predecessor claim settlements | 52,680 | — | — | ||||||||||
Loss on debt retirement | — | (4,897 | ) | (12,847 | ) | ||||||||
Income from continuing operations before income taxes | $ | 112,887 | $ | 24,381 | $ | 23,774 | |||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets by segment: | |||||||||||||
East | $ | 510,033 | $ | 368,317 | |||||||||
Central | 409,976 | 151,139 | |||||||||||
West | 121,889 | 111,786 | |||||||||||
South and other | 127,791 | 119,142 | |||||||||||
Corporate | 120,001 | 283,988 | |||||||||||
Assets held for sale | — | 9,249 | |||||||||||
Total assets | $ | 1,289,690 | $ | 1,043,621 | |||||||||
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
(amounts in thousands, except per share data) | |||||||||||||||||
Net revenues | $ | 144,623 | $ | 197,508 | $ | 217,099 | $ | 187,431 | |||||||||
Operating income | 35,509 | 11,457 | 21,798 | 2,359 | |||||||||||||
Income from continuing operations | 24,001 | 4,936 | 12,072 | 211,887 | |||||||||||||
Income (loss) from discontinued operations, net | 216 | (113 | ) | 1,605 | (3,337 | ) | |||||||||||
Net income | $ | 24,217 | $ | 4,823 | $ | 13,677 | $ | 208,550 | |||||||||
Basic and diluted income per common share attributable to Tropicana Entertainment Inc.: | |||||||||||||||||
Income from continuing operations | $ | 0.91 | $ | 0.19 | $ | 0.46 | $ | 8.05 | |||||||||
Net income | $ | 0.92 | $ | 0.18 | $ | 0.52 | $ | 7.93 | |||||||||
Year ended December 31, 2013 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
(amounts in thousands, except per share data) | |||||||||||||||||
Net revenues | $ | 138,361 | $ | 143,751 | $ | 148,747 | $ | 126,808 | |||||||||
Operating income | 9,353 | 18,308 | 13,883 | 1,219 | |||||||||||||
Income (loss) from continuing operations | 5,279 | 13,840 | 9,129 | (6,401 | ) | ||||||||||||
Income (loss) from discontinued operations, net | 46 | (830 | ) | (783 | ) | (2,177 | ) | ||||||||||
Net income (loss) | $ | 5,325 | $ | 13,010 | $ | 8,346 | $ | (8,578 | ) | ||||||||
Basic and diluted income (loss) per common share attributable to Tropicana Entertainment Inc.: | |||||||||||||||||
Income (loss) from continuing operations | $ | 0.2 | $ | 0.53 | $ | 0.35 | $ | (0.24 | ) | ||||||||
Net income (loss) | $ | 0.2 | $ | 0.49 | $ | 0.32 | $ | (0.33 | ) | ||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Principles of Consolidation | Principles of Consolidation | |
The accompanying financial statements include the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates incorporated in the Company's financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowance for doubtful accounts receivable, the estimated valuation allowance for deferred tax assets, certain tax liabilities, estimated cash flows in assessing the impairment of long-lived assets, intangible assets, Casino Reinvestment Development Authority (the "CRDA") investments, fair values of acquired assets and liabilities, self-insured liability reserves, customer loyalty program reserves, contingencies, litigation, claims, assessments and loss contingencies. Actual results could differ from these estimates. | ||
Business Combinations | Business Combinations | |
The Company accounts for business combinations in accordance with guidance related to business combinations using the purchase method of accounting for business combinations, which requires that the assets acquired and liabilities assumed be recorded on the date of acquisition at their respective fair value and the identification and recognition of intangible assets separately from goodwill. Additionally, the guidance requires, among other things, the buyer to: (1) expense acquisition-related costs; (2) recognize assets or liabilities assumed arising from contractual contingencies on the acquisition date using acquisition-date fair values; (3) recognize goodwill as the excess of the consideration transferred plus the fair value of any noncontrolling interest over the acquisition-date fair value of net assets acquired; (4) recognize, on the acquisition date, any contingent consideration using acquisition-date fair values (i.e., fair value earn-outs in the initial accounting for the acquisition); and (5) eliminate the recognition of liabilities for restructuring costs expected to be incurred as a result of the business combination. In addition, if the buyer determines that some or all of its previously booked deferred tax valuation allowance is no longer needed as a result of the business combination, the guidance requires that the reduction or elimination of the valuation allowance be accounted as a reduction of income tax expense. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents include cash, cash on hand in the casino cages, certificates of deposit, money market funds and other highly liquid investments with original maturities of three months or less. | ||
Restricted Cash | Restricted Cash | |
Restricted cash consisted primarily of funds invested in money market funds. | ||
Concentration of Credit Risk | Concentration of Credit Risk | |
Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalent accounts maintained in financial institutions and accounts receivable. Bank accounts are insured by the Federal Deposit Insurance Corporation up to $250,000 or with the Securities Investor Protection Corporation up to $500,000. Concentration of credit risk, with respect to casino receivables, is limited through the Company's credit evaluation process. The Company issues markers to approved casino customers following credit checks and investigations of credit worthiness. | ||
Receivables | Receivables | |
Receivables consist primarily of casino, hotel and other receivables, net of an allowance for doubtful accounts. Receivables are typically non-interest bearing and are initially recorded at cost. Accounts are written off when management deems the account to be uncollectible. An estimated allowance for doubtful accounts is maintained to reduce the Company's receivables to their expected realization, which approximates fair value. The allowance is estimated based on specific reviews of customer accounts as well as historical collection experience and current economic and business conditions. Recoveries of accounts previously written off are recorded when received. | ||
Inventories | Inventories | |
Inventories consist primarily of food and beverage, retail merchandise and operating supplies and are stated at the lower of cost or market. Cost is determined using the first-in, first-out method. | ||
Property and Equipment | Property and Equipment | |
Property and equipment under fresh-start reporting and business combination guidance is stated at fair value as of the Effective Date and acquisition date, respectively. Property and equipment acquired subsequent to the Effective Date and the acquisition date are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets or, for capital leases and leasehold improvements, over the shorter of the asset's useful life or the term of the lease. Gains or losses on disposals of assets are recognized as incurred. Costs of major improvements are capitalized, while costs of normal repairs and maintenance are expensed as incurred. | ||
The Company must make estimates and assumptions when accounting for capital expenditures. Whether an expenditure is considered a maintenance expense or a capital asset is a matter of judgment. In contrast to normal repair and maintenance costs that are expensed when incurred, items the Company classifies as maintenance capital are expenditures necessary to keep its existing properties at their current levels and are typically replacement items due to the normal wear and tear of its properties and equipment as a result of use and age. The Company's depreciation expense is highly dependent on the assumptions it makes about its assets' estimated useful lives. The Company determines the estimated useful lives based on its experience with similar assets, engineering studies and its estimate of the usage of the asset. Whenever events or circumstances occur that change the estimated useful life of an asset, the Company accounts for the change prospectively. | ||
Long-Lived Assets | Long-Lived Assets | |
The Company evaluates its property and equipment and other long-lived assets for impairment in accordance with accounting guidance related to impairment or disposal of long-lived assets. For assets to be held for sale, the Company recognizes the asset to be sold at the lower of carrying value or fair value less costs to sell. Fair value for assets held for sale is generally estimated based on comparable asset sales, solicited offers or a discounted cash flow model. For long-lived assets to be held and used, the Company reviews for impairment whenever indicators of impairment exist. If an indicator of impairment exists, the Company compares the estimated undiscounted future cash flows of the asset to the carrying value of the asset. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows are less than the carrying value, then impairment is measured based on estimated fair value compared to carrying value, with fair value typically based on a discounted cash flow model. | ||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |
Goodwill represents the excess of purchase price over fair value of assets acquired and liabilities assumed in business combinations or under fresh-start reporting. In accordance with accounting guidance related to goodwill and other intangible assets, the Company tests for impairment of goodwill and indefinite-lived intangible assets at the reporting unit level in the fourth quarter of each year and in certain situations between those annual dates if events occur or circumstances change indicating potential impairment. The Company has the option to begin with a qualitative assessment, commonly referred to as Step 0, to determine whether it is more likely than not that the reporting units fair value is less than its carrying value. This qualitative assessment may include, but is not limited to, reviewing factors such as the general economic environment, industry and market conditions, changes in key assumptions used since the most recently performed valuation and overall financial performance of the reporting units. If the Company determines the reporting units are not at risk of failing the qualitative assessment no impairment testing is required. | ||
The Company's annual impairment testing for goodwill is performed at the reporting unit level and each of its casino properties is considered to be a reporting unit. The annual goodwill impairment testing utilizes a two step process. In the first step, the Company compares the fair value of each reporting unit with its carrying amount, including goodwill. The fair value of each reporting unit is estimated using the expected present value of future cash flows along with indications provided by the current valuation multiples of comparable publicly traded companies. If the fair value of the reporting unit exceeds its carrying amount, then goodwill of the reporting unit is not considered impaired. If the carrying amount of the reporting unit exceeds its fair value, then the goodwill of the reporting unit is considered impaired and the Company proceeds to the second step of the goodwill impairment test. In the second step, the Company determines the implied fair value of the reporting unit's goodwill by allocating the fair value of the reporting unit determined in step one to the assets and liabilities of the reporting unit, as if the reporting unit had been acquired in business combination. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. | ||
The Company’s indefinite-lived intangible assets, which include its "Tropicana" trade name and certain gaming licenses, are not subject to amortization but are tested for impairment annually. A qualitative assessment of indefinite-lived assets may be performed to determine whether it is necessary to perform the quantitative impairment test. The quantitative annual impairment test for indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The fair value of the trade name is estimated using the relief from royalty method, a form of both the income approach and the market approach, which is a function of prospective revenue, the royalty rate that would hypothetically be charged by a licensor of an asset to an unrelated licensee, and a discount rate. The fair value of the Company’s gaming licenses is estimated using the Greenfield method of the discounted cash flow approach which is the function of the cost to build a new casino operation, the build out period, projected cash flows attributed to the casino once operational, and a discount rate. | ||
The Company’s definite-lived intangible assets include customer lists and favorable lease arrangements. Intangible assets with a definite life are amortized over their useful life, which is the period over which the asset is expected to contribute directly or indirectly to future cash flows. Management periodically assesses the amortization period of intangible assets with definite lives based upon estimated future cash flows from related operations. | ||
The Company believes its prospective cash flow assumptions are reasonable. However, future cash flow estimates are, by their nature, subjective and actual results may differ materially from the Company’s estimates. If ongoing estimates of future cash flows are not met, impairment charges may be recorded in future accounting periods. Estimates of cash flows are based on the current regulatory, political and economic climates, recent operating information and budgets of the various properties where the Company conducts operations. These estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, or other events affecting various forms of travel and access to the Company’s properties. | ||
CRDA Investment | CRDA Investments | |
The New Jersey Casino Reinvestment Development Authority ("CRDA") deposits made by Tropicana AC are carried at fair value. The CRDA deposits are recorded at fair value and are used to purchase CRDA bonds that carry below market interest rates unless an alternative investment is approved. A valuation allowance is established, unless there is an agreement with the CRDA for a return of the deposit at full face value, by a charge to the statement of operations as part of general and administrative expense. If the CRDA deposits are used to purchase CRDA bonds, the valuation allowance is transferred to the bonds as a discount, which is amortized to interest income using the interest method. If the CRDA deposits are used to make other investments, the valuation allowance is transferred to those investments and remains a valuation allowance. The CRDA bonds are classified as held-to-maturity securities and are carried at amortized cost less any adjustments for other than temporary impairments. | ||
Debt Issuance Costs | Debt Issuance Costs | |
Debt issuance costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense over the expected terms of the related debt agreements using the effective interest method, and are included in other assets, net, on the Company's balance sheets. | ||
Self-Insurance Reserves | Self-Insurance Reserves | |
The Company is self-insured up to certain stop loss amounts for employee health coverage, workers' compensation and general liability claims. Insurance claims and reserves include accruals of estimated settlements for known claims, as well as accruals of estimates for claims incurred but not yet reported as estimated by management with the assistance of a third party claims administrator. In estimating these accruals, historical loss experience is considered and judgments are made about the expected levels of costs per claim. The Company believes its estimates of future liability are reasonable based upon its methodology; however, changes in health care costs, accident frequency and severity and other factors could materially affect the estimates for these liabilities. The Company continually monitors changes in claim type and incident and evaluates the insurance accrual, making necessary adjustments based on the evaluation of these qualitative data points. | ||
Fair Value Measurement | Fair Value of Financial Instruments | |
As defined under GAAP, fair value is the price that would be received to sell an asset or paid to transfer a liability between market participants in the principal market or in the most advantageous market when no principal market exists. Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value. Considerable judgment may be required in interpreting market data used to develop the estimates of fair value. Accordingly, estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized in a current or future market exchange. See Note 4 - Fair Value for further detail related to the fair value of financial instruments. | ||
Customer Loyalty Program | Customer Loyalty Program | |
The Company provides certain customer loyalty programs (the "Programs") at its casinos, which allow customers to redeem points earned from their gaming activity for cash, food, beverage, rooms or merchandise. Under the Programs, customers are able to accumulate points that may be redeemed in the future, subject to certain limitations and the terms of the Programs. The Company records a liability for the estimated cost of the outstanding points under the Programs that it believes will ultimately be redeemed. The estimated cost of the outstanding points under the Programs is calculated based on estimates and assumptions regarding marginal costs of the goods and services, redemption rates and the mix of goods and services for which the points are expected to be redeemed. For points that may be redeemed for cash, the Company accrues this cost (after consideration of estimated redemption rates) as they are earned from gaming play, which is included in promotional allowances. For points that may only be redeemed for goods or services but cannot be redeemed for cash, the Company estimates the cost and accrues for this expense as the points are earned from gaming play, which is recorded as casino operating costs and expenses. | ||
Revenue Recognition and Promotional Allowances | Revenue Recognition and Promotional Allowances | |
Casino revenue represents the difference between wins and losses from gaming activities. Room, food and beverage and other operating revenues are recognized at the time the goods or services are provided. The Company collects taxes from customers at the point of sale on transactions subject to sales and other taxes. Revenues are recorded net of any taxes collected. The majority of the Company's casino revenue is counted in the form of cash and chips and, therefore, is not subject to any significant or complex estimation. The retail value of rooms, food and beverage and other services provided to customers on a complimentary basis is included in gross revenues and then deducted as promotional allowances. Promotional allowances also include incentives earned in our slot bonus program such as cash, complimentary play, and the estimated retail value of goods and services (such as complimentary rooms and food and beverages). We reward customers, through the use of bonus programs, with points based on amounts wagered that can be redeemed for a specified period of time, principally for complimentary play, and to a lesser extent for goods or services, depending upon the property. | ||
Gaming Taxes | Gaming Taxes | |
The Company is subject to taxes based on gross gaming revenues, the number of gaming devices and/or the number of admissions in the jurisdictions in which the Company operates, subject to applicable jurisdictional adjustments. These gaming taxes are recognized in casino operating costs and expenses in the accompanying consolidated statements of income. | ||
Advertising | Advertising | |
The Company expenses advertising costs as incurred or the first time the advertising takes place. Advertising expense, included in continuing operations, which is generally recognized in marketing, advertising and promotions in the accompanying consolidated statements of income, was $20.0 million, $10.4 million and $9.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Income Taxes | Income Taxes | |
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that included the enactment date. Future tax benefits are recognized to the extent that realization of those benefits is considered more likely than not, and a valuation allowance is established for deferred tax assets which do not meet this threshold. | ||
Recently Issued Accounting Standards | Recently Issued Accounting Standards | |
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, an amendment to FASB Accounting Standards Codification ("ASC") Topic 205, Presentation of Financial Statements. This update provides guidance on management's responsibility in evaluating whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This ASU is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its financial statement disclosures. | ||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The standard will be effective for the first interim period within fiscal years beginning after December 15, 2016, using one of two retrospective application methods. The Company is evaluating the impacts, if any, the adoption of ASU No. 2014-09 will have on the Company's financial position or results of operations. | ||
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for reporting discontinued operations. Under the amendment a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when any of the following occurs: (i) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (ii) the component of an entity or group of components of an entity is disposed of by sale; and (iii) the component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). This new guidance is effective prospectively for all disposals (or classifications as held for sale) of components of an entity and all business activities, on acquisition, that are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. | ||
A variety of proposed or otherwise potential accounting standards are currently under consideration by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, we have not yet determined the effect, if any, that the implementation of such proposed standards would have on our financial statements. | ||
Reclassifications | Reclassifications | |
The accompanying consolidated financial statements reflect certain reclassifications to prior year amounts in order to conform with current year presentation. The reclassifications have no effect on previously reported net income. | ||
Favorable Lease Adjustments | Favorable lease adjustment | |
In connection with the adoption of fresh-start reporting as of the Effective Date, the Company recognized favorable lease assets which were being amortized to rental expense on a straight-line basis over 30 years. In 2012, the Company determined that certain favorable lease agreements were not assumed by the Company pursuant to the Company's Plan of Reorganization and emergence from bankruptcy and, accordingly, the related favorable lease asset should not have been recognized on the Effective Date. The Company evaluated the effects of this adjustment on the financial statements and concluded that the error was not material to any prior annual or interim periods or the current period. | ||
Fair Value | The carrying values of the Company's cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value because of the short term maturities of these instruments. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows: | |
• | Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |
• | Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | |
• | Level 3 - Unobservable inputs reflect the Company's judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. The Company develops these inputs based on the best information available, including its own data. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of Promotional Allowances | The amounts included in promotional allowances consist of the following (in thousands): | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Room | $ | 33,693 | $ | 26,126 | $ | 27,125 | |||||||
Food and beverage | 46,914 | 35,234 | 40,354 | ||||||||||
Other | 9,002 | 7,084 | 12,112 | ||||||||||
Total | $ | 89,609 | $ | 68,444 | $ | 79,591 | |||||||
Schedule of Estimated Costs of Providing Promotional Allowances | The estimated departmental costs and expenses of providing these promotional allowances, for continuing operations, are included in casino operating costs and expenses and consist of the following (in thousands): | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Room | $ | 18,843 | $ | 15,153 | $ | 15,201 | |||||||
Food and beverage | 43,201 | 33,470 | 36,464 | ||||||||||
Other | 3,598 | 2,410 | 2,326 | ||||||||||
Total | $ | 65,642 | $ | 51,033 | $ | 53,991 | |||||||
LUMIERE_PLACE_ACQUISITION_Tabl
LUMIERE PLACE ACQUISITION (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary purchase price allocation was as follows (in thousands): | |||||||
Fair Value | ||||||||
Current assets | $ | 15,931 | ||||||
Property and equipment | 249,097 | |||||||
Intangible assets | 8,848 | |||||||
Other assets | 657 | |||||||
Total assets | 274,533 | |||||||
Total liabilities | (13,227 | ) | ||||||
Total purchase price | $ | 261,306 | ||||||
Schedule of Acquiree Results Included in Financial Statements | The amounts of revenue and loss of Lumière Place included in the accompanying consolidated statements of income for the year ended December 31, 2014 are as follows (in thousands): | |||||||
Period from | ||||||||
April 1 to December 31, 2014 | ||||||||
Net revenues | $ | 124,882 | ||||||
Net loss | (3,153 | ) | ||||||
Business Acquisition, Pro Forma Information | The unaudited pro forma information is as follows (in thousands, except per share data): | |||||||
Year ended December 31, | ||||||||
2014 | 2013 | |||||||
Net Revenues | $ | 787,656 | $ | 737,751 | ||||
Net Income | 251,695 | 37,060 | ||||||
Basic and diluted net income per common share | $ | 9.57 | $ | 1.41 | ||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair value of assets measured on a recurring basis | The following table presents a summary of fair value measurements by level for certain assets measured at fair value on a recurring basis included in the accompanying consolidated balance sheets at December 31, 2014 and 2013 (in thousands): | |||||||||||||||
Input Levels for Fair Value Measurements | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
31-Dec-14 | ||||||||||||||||
Assets: | ||||||||||||||||
CRDA deposits, net | $ | — | $ | — | $ | 24,384 | $ | 24,384 | ||||||||
31-Dec-13 | ||||||||||||||||
Assets: | ||||||||||||||||
CRDA deposits, net | $ | — | $ | — | $ | 22,337 | $ | 22,337 | ||||||||
Change in fair value of Level 3 assets | The following table summarizes the changes in fair value of the Company's Level 3 CRDA deposits (in thousands): | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Balance at January 1 | $ | 22,337 | $ | 22,764 | ||||||||||||
Realized or unrealized losses | (705 | ) | (2,161 | ) | ||||||||||||
Additional CRDA deposits | 3,998 | 2,869 | ||||||||||||||
Purchases of CRDA investments | (1,246 | ) | (1,135 | ) | ||||||||||||
Balance at December 31 | $ | 24,384 | $ | 22,337 | ||||||||||||
Schedule of assets measured at fair value on a nonrecurring basis | The following table summarizes assets measured at fair value on a nonrecurring basis during the years ended December 31, 2014 and 2013 included in the accompanying consolidated balance sheets (in thousands): | |||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
Category | Level 3 Asset | Recognized Loss | Level 3 Asset | Recognized Loss | ||||||||||||
Goodwill | $ | 15,857 | $ | 9,071 | $ | — | $ | — | ||||||||
Assets held for sale, net | — | — | 7,601 | 2,611 | ||||||||||||
RECEIVABLES_Tables
RECEIVABLES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Receivables | Receivables consist of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Casino | $ | 15,472 | $ | 18,000 | ||||
Hotel | 4,897 | 4,539 | ||||||
Predecessors' administrative tax claim | — | 10,478 | ||||||
Income tax receivable | — | 1,266 | ||||||
Other | 13,596 | 6,308 | ||||||
33,965 | 40,591 | |||||||
Allowance for doubtful accounts | (11,252 | ) | (11,805 | ) | ||||
Receivables, net | $ | 22,713 | $ | 28,786 | ||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property and equipment | Property and equipment consist of the following (in thousands): | |||||||||
Estimated | December 31, | |||||||||
life | ||||||||||
(years) | 2014 | 2013 | ||||||||
Land | — | $ | 115,947 | $ | 89,724 | |||||
Buildings and improvements | 10 - 40 | 549,929 | 335,050 | |||||||
Furniture, fixtures and equipment | 3 - 7 | 182,948 | 130,174 | |||||||
Riverboats and barges | 5 - 15 | 16,908 | 18,990 | |||||||
Construction in progress | — | 46,058 | 12,708 | |||||||
911,790 | 586,646 | |||||||||
Accumulated depreciation | (171,038 | ) | (125,901 | ) | ||||||
Property and equipment, net | $ | 740,752 | $ | 460,745 | ||||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Changes in the carrying amount of Goodwill | Changes in the carrying amount of Goodwill by segment are as follows (in thousands): | |||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Impairment | Carrying | Carrying | Impairment | Carrying | |||||||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||||||||
Central | $ | 14,224 | $ | — | $ | 14,224 | $ | 14,224 | $ | — | $ | 14,224 | ||||||||||||
South and other | 1,731 | (1,731 | ) | — | 1,731 | (1,731 | ) | — | ||||||||||||||||
Corporate | 10,704 | (9,071 | ) | 1,633 | 10,704 | — | 10,704 | |||||||||||||||||
Total | $ | 26,659 | $ | (10,802 | ) | $ | 15,857 | $ | 26,659 | $ | (1,731 | ) | $ | 24,928 | ||||||||||
Intangible assets | Intangible assets consist of the following (in thousands): | |||||||||||||||||||||||
Estimated | December 31, | |||||||||||||||||||||||
life | ||||||||||||||||||||||||
(years) | 2014 | 2013 | ||||||||||||||||||||||
Trade name | Indefinite | $ | 25,500 | $ | 25,500 | |||||||||||||||||||
Gaming licenses | Indefinite | 37,387 | 28,700 | |||||||||||||||||||||
Customer lists | 3 | 3,021 | 2,861 | |||||||||||||||||||||
Favorable lease | 5 - 42 | 15,374 | 15,645 | |||||||||||||||||||||
Total intangible assets | 81,282 | 72,706 | ||||||||||||||||||||||
Less accumulated amortization: | ||||||||||||||||||||||||
Customer lists | (2,901 | ) | (2,861 | ) | ||||||||||||||||||||
Favorable lease | (3,371 | ) | (2,831 | ) | ||||||||||||||||||||
Total accumulated amortization | (6,272 | ) | (5,692 | ) | ||||||||||||||||||||
Intangible assets, net | $ | 75,010 | $ | 67,014 | ||||||||||||||||||||
IMPAIRMENT_CHARGES_OTHER_WRITE1
IMPAIRMENT CHARGES, OTHER WRITE-DOWNS AND RECOVERIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Impairment Charges, Other Write-Downs and Recoveries [Abstract] | |||||||||||||
Impairment Charges, Other Write-Downs and Recoveries | Impairment charges and other write-downs included in continuing operations consist of the following (in thousands): | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Impairment of barge | $ | — | $ | 439 | $ | — | |||||||
Impairment of intangible assets | 44 | — | 1,779 | ||||||||||
Loss on disposal of assets | 1,082 | 48 | 109 | ||||||||||
Gain on insurance recoveries | (5,610 | ) | — | (4,318 | ) | ||||||||
Total impairment charges, other write-downs and recoveries | $ | (4,484 | ) | $ | 487 | $ | (2,430 | ) | |||||
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||
Schedule of investments | Investments consist of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
CRDA investment in bonds | $ | 16,409 | $ | 16,542 | ||||
Less unamortized discount | (4,306 | ) | (4,417 | ) | ||||
Less valuation allowance | (3,662 | ) | (3,463 | ) | ||||
CRDA deposits | 32,257 | 29,538 | ||||||
Less valuation allowance | (7,873 | ) | (7,201 | ) | ||||
CRDA direct investments | 1,292 | 4,022 | ||||||
Less valuation allowance | (1,292 | ) | (1,381 | ) | ||||
Total investments | $ | 32,825 | $ | 33,640 | ||||
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Assets [Abstract] | ||||||||
Schedule of other assets | Other assets consist of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Debt issuance costs | $ | 3,931 | $ | 4,304 | ||||
Tropicana Evansville prepaid rent | — | 2,475 | ||||||
Deposits | 3,951 | 4,812 | ||||||
Other | 2,922 | 4,379 | ||||||
Other assets | $ | 10,804 | $ | 15,970 | ||||
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accrued payroll and benefits | $ | 29,709 | $ | 24,697 | ||||
Accrued gaming and related | 16,687 | 10,564 | ||||||
Accrued taxes | 16,963 | 9,587 | ||||||
Predecessors' administrative tax claim | — | 9,792 | ||||||
Other accrued expenses and current liabilities | 15,578 | 9,715 | ||||||
Total accrued expenses and other current liabilities | $ | 78,937 | $ | 64,355 | ||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt consists of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
New Term Loan Facility, due 2020, interest at 4.0% at December 31, 2014 and 2013, net of unamortized discount of $1.3 and $1.5 million at December 31, 2014 and 2013. | $ | 294,992 | $ | 297,771 | ||||
Less current portion of debt | (3,000 | ) | (3,000 | ) | ||||
Total long-term debt, net | $ | 291,992 | $ | 294,771 | ||||
Schedule of maturities of long-term debt | Scheduled maturities of the Company's long-term debt at December 31, 2014 are as follows (in thousands): | |||||||
Years ending December 31, | ||||||||
2015 | $ | 3,000 | ||||||
2016 | 3,000 | |||||||
2017 | 3,000 | |||||||
2018 | 3,000 | |||||||
2019 | 3,000 | |||||||
Thereafter | 281,250 | |||||||
Total scheduled maturities | 296,250 | |||||||
Unamortized debt discount | (1,258 | ) | ||||||
Total long-term debt | $ | 294,992 | ||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of future minimum rental payments | Future minimum rental payments, excluding the prepayment of rent to the City of Evansville, that have initial or remaining non-cancelable lease terms (excluding renewable periods) in excess of one year as of December 31, 2014 are as follows (in thousands): | |||
Years ending December 31, | ||||
2015 | $ | 6,761 | ||
2016 | 6,525 | |||
2017 | 6,102 | |||
2018 | 6,018 | |||
2019 | 5,929 | |||
Thereafter | 44,326 | |||
Total | $ | 75,661 | ||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||
Schedule of multiemployer plans | The Company's participation in the individually significant plan is outlined in the table below: | ||||||||||||||||||||
Pension Fund | EIN/Pension Plan number | Pension Protection Act Status | Contributions | Funding Improvement Plan/ Rehabilitation Plan Status | Surcharge Paid | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
UNITE HERE National Retirement Fund | 13-6130178 / 001 | Red (a) | $ | — | $ | — | $ | 461 | Implemented | No | |||||||||||
(a) On March 31, 2010, this fund was certified in critical status under the federal multiemployer plan funding laws pursuant to the Pension Protection Act of 2006. |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Discontinued Operations, Balance Sheet and Income Statement | The assets and liabilities of River Palms are presented as held for sale as follows (in thousands, unaudited): | |||||||||||
2013 | ||||||||||||
Cash | $ | 2,138 | ||||||||||
Receivables, net | 245 | |||||||||||
Property and equipment, net | 6,147 | |||||||||||
Other assets | 719 | |||||||||||
Total assets held for sale | $ | 9,249 | ||||||||||
Accounts payable | $ | 411 | ||||||||||
Accrued expenses and other liabilities | 1,237 | |||||||||||
Total liabilities related to assets held for sale | $ | 1,648 | ||||||||||
Operating results of discontinued operations are summarized as follows (in thousands, unaudited): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net revenues | $ | 11,964 | $ | 17,484 | $ | 19,430 | ||||||
Operating costs and expenses | (12,954 | ) | (18,721 | ) | (20,703 | ) | ||||||
Impairment of discontinued operations | — | (2,611 | ) | — | ||||||||
Loss from operations | (990 | ) | (3,848 | ) | (1,273 | ) | ||||||
Income (loss) from disposal of discontinued operations, net | (233 | ) | — | — | ||||||||
Income tax benefit (expense) | (406 | ) | 104 | (540 | ) | |||||||
Loss from discontinued operations, net | $ | (1,629 | ) | $ | (3,744 | ) | $ | (1,813 | ) |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of components of income tax expense (benefit) | The income tax expense (benefit) attributable to net income from continuing operations before income taxes is as follows (in thousands): | |||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | 33,348 | $ | — | $ | (313 | ) | |||||
State | 5,403 | 2,443 | 3,268 | |||||||||
Total current | 38,751 | 2,443 | 2,955 | |||||||||
Deferred: | ||||||||||||
Federal | (176,140 | ) | 84 | (84 | ) | |||||||
State | (2,620 | ) | 7 | (7 | ) | |||||||
Total deferred | (178,760 | ) | 91 | (91 | ) | |||||||
Expense (benefit) from income taxes | $ | (140,009 | ) | $ | 2,534 | $ | 2,864 | |||||
Reconciliation of the federal income tax statutory rate and the effective tax rate | A reconciliation of the federal income tax statutory rate and the effective tax rate is as follows: | |||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Employment credits | (0.1 | ) | (2.0 | ) | — | |||||||
Permanent differences | 2.8 | 1.3 | 1.8 | |||||||||
Disallowed foreign activity | 0.2 | 1.2 | 4.2 | |||||||||
State tax | 1.3 | 7.4 | 9.4 | |||||||||
Valuation allowance | (163.2 | ) | (32.5 | ) | (38.4 | ) | ||||||
Effective tax rate | (124.0 | )% | 10.4 | % | 12 | % | ||||||
Schedule of major tax-effected components of the net deferred tax assets (liabilities) | The major tax-effected components of the net deferred tax asset (liability) are as follows (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Receivables | $ | 4,550 | $ | 4,787 | ||||||||
Accrued compensation | 6,519 | 3,772 | ||||||||||
Reserves/accrued liabilities | 3,392 | 1,991 | ||||||||||
Net operating loss carryforward | 61,756 | 68,368 | ||||||||||
Property and equipment | 131,405 | 135,385 | ||||||||||
Credits/carryforwards | 132 | 2,320 | ||||||||||
Other assets | 2,727 | 2,661 | ||||||||||
Gross deferred tax assets | 210,481 | 219,284 | ||||||||||
Valuation allowance | (26,409 | ) | (214,606 | ) | ||||||||
Total deferred tax assets | $ | 184,072 | $ | 4,678 | ||||||||
Deferred tax liabilities: | ||||||||||||
Deductible prepaid expenses | $ | (4,256 | ) | $ | (3,529 | ) | ||||||
Intangible assets | (20,715 | ) | (20,808 | ) | ||||||||
Total deferred tax liabilities | (24,971 | ) | (24,337 | ) | ||||||||
Net deferred tax assets (liabilities) | $ | 159,101 | $ | (19,659 | ) | |||||||
Reconciliation of the beginning and ending amounts of gross unrecognized tax benefits | A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits is as follows (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits, beginning of period | $ | — | $ | — | $ | — | ||||||
Reductions based on tax positions related to the prior year | — | — | — | |||||||||
Reductions due to lapse of statute of limitations | — | — | — | |||||||||
Unrecognized tax benefits, end of period | $ | — | $ | — | $ | — | ||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Schedule of segment net revenues and operating income (loss) and reconciliation of operating income (loss) to income from continuing operations before income taxes | The following table highlights by segment our net revenues and operating income, and reconciles operating income to income from continuing operations before income taxes for the years ended December 31, 2014, 2013 and 2012 (in thousands). | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net revenues: | |||||||||||||
East | $ | 303,079 | $ | 244,471 | $ | 264,037 | |||||||
Central | 247,784 | 120,459 | 122,502 | ||||||||||
West | 103,147 | 101,769 | 101,087 | ||||||||||
South and other | 92,651 | 90,968 | 105,732 | ||||||||||
Corporate | — | — | — | ||||||||||
Total net revenues | $ | 746,661 | $ | 557,667 | $ | 593,358 | |||||||
Operating income: | |||||||||||||
East | $ | 44,121 | $ | 11,188 | $ | 2,059 | |||||||
Central | 30,119 | 27,977 | 27,002 | ||||||||||
West | 13,564 | 11,467 | 12,676 | ||||||||||
South and other | 10,337 | 4,748 | 20,413 | ||||||||||
Corporate | (27,018 | ) | (12,617 | ) | (9,145 | ) | |||||||
Total operating income | $ | 71,123 | $ | 42,763 | $ | 53,005 | |||||||
Reconciliation of operating income to income from continuing operations before income taxes: | |||||||||||||
Operating income | $ | 71,123 | $ | 42,763 | $ | 53,005 | |||||||
Interest expense | (12,873 | ) | (14,331 | ) | (17,161 | ) | |||||||
Interest income | 1,957 | 846 | 777 | ||||||||||
Predecessor claim settlements | 52,680 | — | — | ||||||||||
Loss on debt retirement | — | (4,897 | ) | (12,847 | ) | ||||||||
Income from continuing operations before income taxes | $ | 112,887 | $ | 24,381 | $ | 23,774 | |||||||
Schedule of segment assets | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets by segment: | |||||||||||||
East | $ | 510,033 | $ | 368,317 | |||||||||
Central | 409,976 | 151,139 | |||||||||||
West | 121,889 | 111,786 | |||||||||||
South and other | 127,791 | 119,142 | |||||||||||
Corporate | 120,001 | 283,988 | |||||||||||
Assets held for sale | — | 9,249 | |||||||||||
Total assets | $ | 1,289,690 | $ | 1,043,621 | |||||||||
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of quarterly financial information | |||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
(amounts in thousands, except per share data) | |||||||||||||||||
Net revenues | $ | 144,623 | $ | 197,508 | $ | 217,099 | $ | 187,431 | |||||||||
Operating income | 35,509 | 11,457 | 21,798 | 2,359 | |||||||||||||
Income from continuing operations | 24,001 | 4,936 | 12,072 | 211,887 | |||||||||||||
Income (loss) from discontinued operations, net | 216 | (113 | ) | 1,605 | (3,337 | ) | |||||||||||
Net income | $ | 24,217 | $ | 4,823 | $ | 13,677 | $ | 208,550 | |||||||||
Basic and diluted income per common share attributable to Tropicana Entertainment Inc.: | |||||||||||||||||
Income from continuing operations | $ | 0.91 | $ | 0.19 | $ | 0.46 | $ | 8.05 | |||||||||
Net income | $ | 0.92 | $ | 0.18 | $ | 0.52 | $ | 7.93 | |||||||||
Year ended December 31, 2013 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
(amounts in thousands, except per share data) | |||||||||||||||||
Net revenues | $ | 138,361 | $ | 143,751 | $ | 148,747 | $ | 126,808 | |||||||||
Operating income | 9,353 | 18,308 | 13,883 | 1,219 | |||||||||||||
Income (loss) from continuing operations | 5,279 | 13,840 | 9,129 | (6,401 | ) | ||||||||||||
Income (loss) from discontinued operations, net | 46 | (830 | ) | (783 | ) | (2,177 | ) | ||||||||||
Net income (loss) | $ | 5,325 | $ | 13,010 | $ | 8,346 | $ | (8,578 | ) | ||||||||
Basic and diluted income (loss) per common share attributable to Tropicana Entertainment Inc.: | |||||||||||||||||
Income (loss) from continuing operations | $ | 0.2 | $ | 0.53 | $ | 0.35 | $ | (0.24 | ) | ||||||||
Net income (loss) | $ | 0.2 | $ | 0.49 | $ | 0.32 | $ | (0.33 | ) | ||||||||
BASIS_OF_PRESENTATION_AND_ORGA1
BASIS OF PRESENTATION AND ORGANIZATION - Geographical Information (Details) | Dec. 31, 2014 |
Casinos | |
Island of Aruba | |
Geographical Information [Line Items] | |
Number of casinos | 1 |
Nevada | |
Geographical Information [Line Items] | |
Number of casinos | 2 |
Indiana | |
Geographical Information [Line Items] | |
Number of casinos | 1 |
Louisiana | |
Geographical Information [Line Items] | |
Number of casinos | 1 |
Mississippi | |
Geographical Information [Line Items] | |
Number of casinos | 1 |
Missouri | |
Geographical Information [Line Items] | |
Number of casinos | 1 |
New Jersey | |
Geographical Information [Line Items] | |
Number of casinos | 1 |
BASIS_OF_PRESENTATION_AND_ORGA2
BASIS OF PRESENTATION AND ORGANIZATION BASIS OF PRESENTATION AND ORGANIZATION - Business Acquisition (Details) (Lumiere Place [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Apr. 01, 2014 |
Lumiere Place [Member] | |
Business Acquisition [Line Items] | |
Cash purchase price | $261,306 |
BASIS_OF_PRESENTATION_AND_ORGA3
BASIS OF PRESENTATION AND ORGANIZATION - Reorganization (Details) (USD $) | 2 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 07, 2010 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||
Common stock, par value | $0.01 | $0.01 | |
Board of Directors Chairman | |||
Business Acquisition [Line Items] | |||
Beneficial ownership interest | 67.90% | ||
Tropicana Entertainment Holdings, LLC Reorganization Plan | |||
Business Acquisition [Line Items] | |||
Number of common shares issued as part of acquisition | 12,098,053 | ||
Common stock, par value | $0.01 | ||
Number of common shares issuable by warrants issued as part of acquisition | 3,750,000 | ||
Number of common shares issuable by debt warrants issued as part of acquisition | 1,312,500 | ||
Penny Warrants, value (in dollars per share) | $0.01 | ||
Shares issued to credit facility lenders as part of reorganization | 12,901,947 | ||
Credit bid from credit facility lenders as part of reorganization | $200 | ||
Tropicana Entertainment Holdings, LLC Reorganization Plan | Board of Directors Chairman | |||
Business Acquisition [Line Items] | |||
Beneficial ownership interest | 47.50% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | 2 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 07, 2010 | Jun. 30, 2012 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Restricted cash | $15,740,000 | $30,856,000 | |||
Cash, FDIC Insured Amount | 250,000 | ||||
Bank accounts, SIPC Insured Amount | 500,000 | ||||
Self-insurance accruals | 10,100,000 | 7,700,000 | |||
Customer loyalty program accrual | 6,300,000 | 4,300,000 | |||
Promotional Allowances | 89,609,000 | 68,444,000 | 79,591,000 | ||
Estimated costs and expenses of providing promotional allowances | 65,642,000 | 51,033,000 | 53,991,000 | ||
Gaming taxes | 104,400,000 | 67,100,000 | 74,100,000 | ||
Advertising costs | 20,000,000 | 10,400,000 | 9,900,000 | ||
Off-Market Favorable Lease [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Estimated life | 30 years | ||||
Reverse prior year's rental expense | -800,000 | -800,000 | -900,000 | ||
Restatement Adjustment [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Reduction in intangible assets, net | 5,300,000 | ||||
Reverse prior year's rental expense | 300,000 | ||||
Room | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Promotional Allowances | 33,693,000 | 26,126,000 | 27,125,000 | ||
Estimated costs and expenses of providing promotional allowances | 18,843,000 | 15,153,000 | 15,201,000 | ||
Food and Beverage | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Promotional Allowances | 46,914,000 | 35,234,000 | 40,354,000 | ||
Estimated costs and expenses of providing promotional allowances | 43,201,000 | 33,470,000 | 36,464,000 | ||
Other Departments | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Promotional Allowances | 9,002,000 | 7,084,000 | 12,112,000 | ||
Estimated costs and expenses of providing promotional allowances | 3,598,000 | 2,410,000 | 2,326,000 | ||
Cash restricted by bankruptcy court | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 9,600,000 | 9,700,000 | |||
Cash restricted to collateralize letters of credit | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 6,200,000 | 6,200,000 | |||
Cash restricted in connection with the agreement to purchase Lumiere [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 15,000,000 | ||||
Additional Paid-in Capital | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Reduction of Additional paid-in capital | $5,640,000 | $5,600,000 |
LUMIERE_PLACE_ACQUISITION_Deta
LUMIERE PLACE ACQUISITION (Details) (Lumiere Place [Member], USD $) | 0 Months Ended | 12 Months Ended | |||
Apr. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 01, 2014 | |
Lumiere Place [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash purchase price | $261,306,000 | ||||
Acquisition-related expense | 1,300,000 | 700,000 | 0 | ||
Current assets | 15,931,000 | 15,931,000 | |||
Property and equipment | 249,097,000 | 249,097,000 | |||
Intangible assets | 8,848,000 | 8,848,000 | |||
Other assets | 657,000 | 657,000 | |||
Total assets | 274,533,000 | 274,533,000 | |||
Total liabilities | -13,227,000 | -13,227,000 | |||
Business Acquisition, Pro Forma Information [Abstract] | |||||
Net revenues since acquisition date | 124,882,000 | ||||
Net loss since acquisition date | -3,153,000 | ||||
Pro forma, Net revenues | 787,656,000 | 737,751,000 | |||
Pro forma, Net income | $251,695,000 | $37,060,000 | |||
Pro forma, basic net income per share (in dollars per share) | $9.57 | $1.41 | |||
Pro forma, diluted net income per share (in dollars per share) | $9.57 | $1.41 |
FAIR_VALUE_Details
FAIR VALUE - (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest on CRDA deposits, percent of current market rate for similar assets | 66.66% | |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CRDA Deposits, net | 24,384 | $22,337 |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CRDA Deposits, net | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CRDA Deposits, net | 0 | 0 |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CRDA Deposits, net | 24,384 | $22,337 |
FAIR_VALUE_Level_3_Reconciliat
FAIR VALUE - Level 3 Reconciliation (Details) (Level 3 [Member], CRDA Deposits, net [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Level 3 [Member] | CRDA Deposits, net [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $22,337 | $22,764 |
Realized or unrealized earnings | -705 | -2,161 |
Additional CRDA deposits | 3,998 | 2,869 |
Purchases of CRDA investments | -1,246 | -1,135 |
Ending balance | $24,384 | $22,337 |
FAIR_VALUE_Nonrecurring_Detail
FAIR VALUE - Nonrecurring (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill impairment | $9,071,000 | $0 | $0 |
Assets held for sale, net, recognized loss | 0 | 2,611,000 | 0 |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 288,300,000 | 300,700,000 | |
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill | 15,857,000 | 0 | |
Assets held for sale, net | 0 | 7,601,000 | |
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
CRDA Bonds, net | $8,400,000 | $8,700,000 |
RECEIVABLES_Details
RECEIVABLES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | $33,965,000 | $40,591,000 | |
Allowance for Doubtful Accounts Receivable, Current | -11,252,000 | -11,805,000 | |
Accounts Receivable, Net, Current | 22,713,000 | 28,786,000 | |
Adjustment to Receivables Related to the Predecessors Tax Claim Settlement | 8,300,000 | ||
Write-off of Receivables Related to the Predecessors Tax Claim | 2,200,000 | ||
Bad debt expense | 2,200,000 | 2,100,000 | 2,400,000 |
Write-offs of uncollectable account receivables | 3,500,000 | 2,400,000 | 2,000,000 |
Casino, Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 15,472,000 | 18,000,000 | |
Hotel, Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 4,897,000 | 4,539,000 | |
Predecessors' Administrative Tax Claim [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 0 | 10,478,000 | |
Income tax receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 0 | 1,266,000 | |
Other Receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | $13,596,000 | $6,308,000 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $911,790,000 | $586,646,000 | |
Accumulated depreciation | -171,038,000 | -125,901,000 | |
Property and equipment, net | 740,752,000 | 460,745,000 | |
Depreciation expense | 50,400,000 | 34,400,000 | 31,100,000 |
Land | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 115,947,000 | 89,724,000 | |
Building and improvements | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 549,929,000 | 335,050,000 | |
Building and improvements | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated life | 10 years | ||
Building and improvements | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated life | 40 years | ||
Furniture, fixtures, and equipment | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 182,948,000 | 130,174,000 | |
Furniture, fixtures, and equipment | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated life | 3 years | ||
Furniture, fixtures, and equipment | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated life | 7 years | ||
Riverboats and barges | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | 16,908,000 | 18,990,000 | |
Riverboats and barges | Minimum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated life | 5 years | ||
Riverboats and barges | Maximum | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Estimated life | 15 years | ||
Construction in progress | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property and equipment, gross | $46,058,000 | $12,708,000 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 |
Goodwill [Line Items] | ||||
Gross Carrying Amount | $26,659 | $26,659 | ||
Accumulated Impairment | -10,802 | -1,731 | ||
Goodwill | 15,857 | 24,928 | ||
Goodwill impairment | 9,071 | 0 | 0 | |
Central | ||||
Goodwill [Line Items] | ||||
Gross Carrying Amount | 14,224 | 14,224 | ||
Accumulated Impairment | 0 | 0 | ||
Goodwill | 14,224 | 14,224 | ||
South and Other Segments [Member] | ||||
Goodwill [Line Items] | ||||
Gross Carrying Amount | 1,731 | 1,731 | ||
Accumulated Impairment | -1,731 | -1,731 | ||
Goodwill | 0 | 0 | ||
Corporate | ||||
Goodwill [Line Items] | ||||
Gross Carrying Amount | 10,704 | 10,704 | ||
Accumulated Impairment | -9,071 | 0 | ||
Goodwill | 1,633 | 10,704 | ||
Goodwill impairment | $9,100 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) (USD $) | 2 Months Ended | 12 Months Ended | ||
Mar. 07, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Intangible Assets [Line Items] | ||||
Total intangible assets, gross | $81,282,000 | $72,706,000 | ||
Total accumulated amortization | -6,272,000 | -5,692,000 | ||
Intangible assets, net | 75,010,000 | 67,014,000 | ||
Customer lists | ||||
Schedule of Intangible Assets [Line Items] | ||||
Intangible assets, finite-lived | 3,021,000 | 2,861,000 | ||
Total accumulated amortization | -2,901,000 | -2,861,000 | ||
Estimated life | 3 years | |||
Amortization expense | 100,000 | 200,000 | 1,000,000 | |
Estimated annual amortization, 2015 | 100,000 | |||
Estimated annual amortization, 2016 | 100,000 | |||
Estimated annual amortization, 2017 | 100,000 | |||
Off-Market Favorable Lease [Member] | ||||
Schedule of Intangible Assets [Line Items] | ||||
Intangible assets, finite-lived | 15,374,000 | 15,645,000 | ||
Total accumulated amortization | -3,371,000 | -2,831,000 | ||
Estimated life | 30 years | |||
Amortization expense | 800,000 | 800,000 | 900,000 | |
Estimated annual amortization, 2015 | 700,000 | |||
Estimated annual amortization, 2016 | 400,000 | |||
Estimated annual amortization, 2017 | 400,000 | |||
Estimated annual amortization, 2018 | 400,000 | |||
Estimated annual amortization, 2019 | 400,000 | |||
Off-Market Favorable Lease [Member] | Maximum | ||||
Schedule of Intangible Assets [Line Items] | ||||
Estimated life | 42 years | |||
Off-Market Favorable Lease [Member] | Minimum | ||||
Schedule of Intangible Assets [Line Items] | ||||
Estimated life | 5 years | |||
Trade name | ||||
Schedule of Intangible Assets [Line Items] | ||||
Intangible assets, indefinite-lived | 25,500,000 | 25,500,000 | ||
Gaming licenses | ||||
Schedule of Intangible Assets [Line Items] | ||||
Intangible assets, indefinite-lived | 37,387,000 | 28,700,000 | ||
Tropicana Evansville [Member] | Gaming licenses | ||||
Schedule of Intangible Assets [Line Items] | ||||
Intangible assets, indefinite-lived | 28,700,000 | 28,700,000 | ||
Lumiere Place [Member] | Gaming licenses | ||||
Schedule of Intangible Assets [Line Items] | ||||
Intangible assets, indefinite-lived | $8,700,000 | |||
Lumiere Place [Member] | Licensing Agreements [Member] | ||||
Schedule of Intangible Assets [Line Items] | ||||
Fair Value Inputs, Long-term Revenue Growth Rate | 2.00% | |||
Fair Value Inputs, Assumed Effective Tax Rate | 38.10% | |||
Fair Value Inputs, Discount Rate | 12.00% |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS - Impairment of Intangible Assets (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2012 |
Restatement Adjustment [Member] | |
Schedule of Intangible Assets [Line Items] | |
Reduction in intangible assets, net | $5.30 |
Tropicana AC [Member] | Off-Market Favorable Lease [Member] | |
Schedule of Intangible Assets [Line Items] | |
Impairment of Intangible Assets, Finite-lived | $1.80 |
IMPAIRMENT_CHARGES_OTHER_WRITE2
IMPAIRMENT CHARGES, OTHER WRITE-DOWNS AND RECOVERIES (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2011 | |
Schedule of Impairment Charges, Other Write-Downs and Recoveries [Line Items] | ||||||
Other Asset Impairment Charges | $0 | $439,000 | $0 | |||
Impairment of intangible assets | 44,000 | 0 | 1,779,000 | |||
Loss on disposal of assets | 1,082,000 | 48,000 | 109,000 | |||
Gain on insurance recoveries | 5,610,000 | 0 | 4,318,000 | |||
Total impairment charges, other write-downs and recoveries | -4,484,000 | 487,000 | -2,430,000 | |||
Insurance proceeds | 5,200,000 | 700,000 | 2,052,000 | |||
Operating activities, Insurance proceeds | 1,250,000 | 0 | 731,000 | |||
South and Other Segments [Member] | High-Wind Storm [Member] | ||||||
Schedule of Impairment Charges, Other Write-Downs and Recoveries [Line Items] | ||||||
Other Asset Impairment Charges | 400,000 | |||||
Gain on insurance recoveries | 4,400,000 | |||||
Insurance proceeds | 700,000 | 5,200,000 | ||||
Settled amount on filed insurance claims | 5,900,000 | |||||
South and Other Segments [Member] | Flood [Member] | ||||||
Schedule of Impairment Charges, Other Write-Downs and Recoveries [Line Items] | ||||||
Gain on insurance recoveries | 4,300,000 | |||||
Insurance proceeds | 2,100,000 | |||||
Period of Natural Disaster and Other Casualty Event | 29 days | |||||
Insurance Recoveries | 2,800,000 | |||||
Operating activities, Insurance proceeds | 700,000 | |||||
East Segment [Member] | Hurricane [Member] | ||||||
Schedule of Impairment Charges, Other Write-Downs and Recoveries [Line Items] | ||||||
Gain on insurance recoveries | $1,300,000 |
INVESTMENTS_Details
INVESTMENTS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Long-term Investments [Line Items] | |||
Assessment of licensees, percentage of gross gaming revenues | 1.25% | ||
Assessment of Licensees, Percentage of Internet Gaming Gross Revenues | 2.50% | ||
Investment alternative tax, percentage of gross gaming revenues | 2.50% | ||
Investment Alternative Tax, Percentage of Internet Gaming Gross Revenues | 5.00% | ||
Investments [Abstract] | |||
Total investments | $32,825,000 | $33,640,000 | |
Interest income | 1,957,000 | 846,000 | 777,000 |
BondsbCRDA | |||
Investments [Abstract] | |||
Investments, carrying value, gross | 16,409,000 | 16,542,000 | |
Less unamortized discount | -4,306,000 | -4,417,000 | |
Less valuation allowance | -3,662,000 | -3,463,000 | |
BondsbCRDA | Minimum | |||
Investments [Abstract] | |||
CRDA bonds, contractual maturities | 2 years | ||
BondsbCRDA | Maximum | |||
Investments [Abstract] | |||
CRDA bonds, contractual maturities | 40 years | ||
DepositsbCRDA | |||
Investments [Abstract] | |||
Investments, carrying value, gross | 32,257,000 | 29,538,000 | |
Less valuation allowance | -7,873,000 | -7,201,000 | |
Interest income | 1,700,000 | 600,000 | 400,000 |
DepositsbCRDA | General and Administrative Expense | |||
Investments [Abstract] | |||
Charge to expense to reflect lower return on funds on deposit | 1,600,000 | 1,000,000 | 500,000 |
Direct investmentbCRDA | |||
Investments [Abstract] | |||
Investments, carrying value, gross | 1,292,000 | 4,022,000 | |
Less valuation allowance | ($1,292,000) | ($1,381,000) |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Assets [Abstract] | ||
Debt issuance costs | $3,931 | $4,304 |
Tropicana Evansville prepaid rent | 0 | 2,475 |
Deposits | 3,951 | 4,812 |
Other | 2,922 | 4,379 |
Other assets | $10,804 | $15,970 |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Payables and Accruals [Abstract] | ||
Accrued payroll and benefits | $29,709,000 | $24,697,000 |
Accrued gaming and related | 16,687,000 | 10,564,000 |
Accrued taxes | 16,963,000 | 9,587,000 |
Predecessors' administrative tax claim | 0 | 9,792,000 |
Other accrued expenses and current liabilities | 15,578,000 | 9,715,000 |
Total accrued expenses and other current liabilities | 78,937,000 | 64,355,000 |
Adjustment to Payables Related to the Predecessors' Tax Claim Settlement | 8,300,000 | |
Write-off of Liabilities Related to Predecessors Tax Claims | $1,500,000 |
DEBT_Schedule_Details
DEBT - Schedule (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term debt | $294,992 | |
Current portion of long-term debt | -3,000 | -3,000 |
Long-term debt, net | 291,992 | 294,771 |
Debt Instrument, Unamortized Discount | 1,258 | |
The New Credit Facilities | New Term Loan Facility, Due 2020, Interest at 4 Percent [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 294,992 | 297,771 |
Interest rate | 4.00% | 4.00% |
Debt Instrument, Unamortized Discount | $1,300 | $1,500 |
DEBT_Additional_Information_De
DEBT - Additional Information - (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 29, 2009 | Dec. 31, 2011 | Nov. 27, 2013 | Mar. 31, 2012 | |
Debt Instrument [Line Items] | |||||||
Loss on debt retirement | $0 | $4,897,000 | $12,847,000 | ||||
Scheduled maturities of long-term debt [Abstract] | |||||||
2015 | 3,000,000 | ||||||
2016 | 3,000,000 | ||||||
2017 | 3,000,000 | ||||||
2018 | 3,000,000 | ||||||
2019 | 3,000,000 | ||||||
Thereafter | 281,250,000 | ||||||
Total scheduled maturities | 296,250,000 | ||||||
Debt Instrument, Unamortized Discount | -1,258,000 | ||||||
Long-term Debt | 294,992,000 | ||||||
The New Credit Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.00% | ||||||
The New Credit Facilities | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Covenant, Senior Secured Net Leverage Ratio | 3.25 | ||||||
Debt Instruments, Percent of Annual Excess Cash Flow | 50.00% | ||||||
The New Credit Facilities | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instruments, Percent of Annual Excess Cash Flow | 0.00% | ||||||
The New Credit Facilities | New Term Loan Facility, Due 2020, Interest at 4 Percent [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance amount | 300,000,000 | ||||||
Discount rate | 0.50% | ||||||
Debt instruments, quarterly principal payment | 750,000 | ||||||
Interest rate floor | 4.00% | ||||||
Effective interest rate | 4.00% | ||||||
Scheduled maturities of long-term debt [Abstract] | |||||||
Debt Instrument, Unamortized Discount | -1,300,000 | -1,500,000 | |||||
Long-term Debt | 294,992,000 | 297,771,000 | |||||
Interest rate | 4.00% | 4.00% | |||||
The New Credit Facilities | New Term Loan Facility, Due 2020, Interest at 4 Percent [Member] | Alternate Base Rate (as defined in the Credit Agreement) [Member] | Criteria ii [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate basis floor | 2.00% | ||||||
Basis spread on variable rate | 2.00% | ||||||
The New Credit Facilities | New Term Loan Facility, Due 2020, Interest at 4 Percent [Member] | LIBO Rate (as defined in the Credit Agreement) [Member] | Criteria i [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate basis floor | 1.00% | ||||||
Basis spread on variable rate | 3.00% | ||||||
The New Credit Facilities | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 15,000,000 | ||||||
The New Credit Facilities | Revolving Credit Facility [Member] | Alternate Base Rate (as defined in the Credit Agreement) [Member] | Criteria ii [Member] | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.50% | ||||||
The New Credit Facilities | Revolving Credit Facility [Member] | Alternate Base Rate (as defined in the Credit Agreement) [Member] | Criteria ii [Member] | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
The New Credit Facilities | Revolving Credit Facility [Member] | LIBO Rate (as defined in the Credit Agreement) [Member] | Criteria i [Member] | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.50% | ||||||
The New Credit Facilities | Revolving Credit Facility [Member] | LIBO Rate (as defined in the Credit Agreement) [Member] | Criteria i [Member] | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.00% | ||||||
The Credit Facilities [Member] | Term Loan Facility, Due 2018, Interest at 7.5 Percent [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance amount | 175,000,000 | ||||||
Discount rate | 2.00% | ||||||
Repurchase amount | 172,400,000 | ||||||
Loss on debt retirement | 4,900,000 | ||||||
Interest rate floor | 7.50% | ||||||
Scheduled maturities of long-term debt [Abstract] | |||||||
Quarterly payment, percent of principal | 0.25% | ||||||
The Credit Facilities [Member] | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 15,000,000 | ||||||
Exit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Repurchase amount | 107,700,000 | ||||||
Loss on debt retirement | 12,800,000 | ||||||
Scheduled maturities of long-term debt [Abstract] | |||||||
Write off of debt issuance cost and unamortized discount | 10,800,000 | ||||||
Prepayment penalty | 2,000,000 | 2,400,000 | |||||
Number of Penny Warrants issued | 1,312,500 | ||||||
Penny Warrants, value (in dollars per share) | $0.01 | ||||||
Interest rate | 15.00% | ||||||
Interest rate in the event of default | 17.00% | ||||||
Annual fee | 100,000 | ||||||
Unused line fee, percent of daily average undrawn balance | 0.75% | ||||||
Exit Facility | Term Loan Facility, Due 2013, Interest at 15% | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance amount | 130,000,000 | ||||||
Discount rate | 7.00% | ||||||
Scheduled maturities of long-term debt [Abstract] | |||||||
Prepayment of principal | 25,000,000 | ||||||
Periodic payment, principal | 1,300,000 | ||||||
Exit Facility | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $20,000,000 | ||||||
Greater than [Member] | The New Credit Facilities | Revolving Credit Facility [Member] | Alternate Base Rate (as defined in the Credit Agreement) [Member] | Criteria ii [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Covenant, total net leverage ratio | 3 | ||||||
Greater than [Member] | The New Credit Facilities | Revolving Credit Facility [Member] | LIBO Rate (as defined in the Credit Agreement) [Member] | Criteria i [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Covenant, total net leverage ratio | 3 | ||||||
Less than [Member] | The New Credit Facilities | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Covenant, total net leverage ratio | 2.75 | ||||||
Less than [Member] | The New Credit Facilities | Revolving Credit Facility [Member] | Alternate Base Rate (as defined in the Credit Agreement) [Member] | Criteria ii [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Covenant, total net leverage ratio | 2.5 | ||||||
Less than [Member] | The New Credit Facilities | Revolving Credit Facility [Member] | LIBO Rate (as defined in the Credit Agreement) [Member] | Criteria i [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Covenant, total net leverage ratio | 2.5 | ||||||
Amount outstanding under the Revolving loans exceed 35% on the last day of any fiscal quarter compliance with a maximum senior secured net leverage ratio is required [Member] | The New Credit Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Covenant, Senior Secured Net Leverage Ratio | 3.25 | ||||||
Amount outstanding under the Revolving loans exceed 35% on the last day of any fiscal quarter compliance with a maximum senior secured net leverage ratio is required [Member] | The New Credit Facilities | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instruments, Covenants, Percent Outstanding under the Revolving Facility | 35.00% |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | |
Related Party Transaction [Line Items] | |||||
Loss on debt retirement | $0 | $4,897,000 | $12,847,000 | ||
Exit Facility | |||||
Related Party Transaction [Line Items] | |||||
Prepayment penalty | 2,000,000 | 2,400,000 | |||
Loss on debt retirement | 12,800,000 | ||||
Icahn Affiliates | Exit Facility | |||||
Related Party Transaction [Line Items] | |||||
Prepayment penalty | 2,000,000 | ||||
Loss on debt retirement | 2,700,000 | ||||
Icahn Affiliates | Minimum | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Insight Portfolio Group LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Expenses from Transactions with Related Party | $300,000 | $300,000 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - Leases (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2014 | Mar. 07, 2010 | Mar. 31, 2010 | Aug. 31, 2010 | |
RenewalOptions | acre | ||||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||||
2015 | $6,761,000 | ||||||
2016 | 6,525,000 | ||||||
2017 | 6,102,000 | ||||||
2018 | 6,018,000 | ||||||
2019 | 5,929,000 | ||||||
Thereafter | 44,326,000 | ||||||
Total | 75,661,000 | ||||||
Rent expense | 15,100,000 | 14,000,000 | 16,000,000 | ||||
MontBleu Lease | |||||||
Contractual Obligations [Line Items] | |||||||
Unfavorable lease liability recognized | 9,600,000 | ||||||
Unfavorable lease liability balance | 7,200,000 | 7,700,000 | |||||
Long-term Purchase Commitment, Amount | 24,000,000 | ||||||
MontBleu Lease | Long-term liabilities | |||||||
Contractual Obligations [Line Items] | |||||||
Unfavorable lease liability balance | 6,700,000 | 7,200,000 | |||||
MontBleu Lease | Through December 31, 2011 | |||||||
Contractual Obligations [Line Items] | |||||||
Monthly payment base | 333,333 | ||||||
Amounts in addition to base rent, percent of gross revenues above threshold | 10.00% | ||||||
Gross revenue threshold for determining rent payment | 50,000,000 | ||||||
MontBleu Lease | After December 31, 2011 | |||||||
Contractual Obligations [Line Items] | |||||||
Monthly payment base subject to consumer price index adjustment | 333,333 | ||||||
Operating Leases, Amounts In Addition to Base Rent as Increased by CPI as compared to 2009, Percent of Gross Revenues Above a Breakpoint as defined in the lease agreement | 10.00% | ||||||
Rent payment, percent of gross revenues | 10.00% | ||||||
Tropicana Evansville Land Lease | |||||||
Contractual Obligations [Line Items] | |||||||
Number of acres leased | 10 | ||||||
Number of acres where casino resides | 20 | ||||||
Number of renewal options | 7 | ||||||
Operating Leases, Length of Renewal Option1 | 5 years | 5 years | |||||
Prepayment of rent | 13,500,000 | ||||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||||
Operating Leases, Number of Renewal Options Exercised | 2 | ||||||
Tropicana Evansville Land Lease | Minimum | |||||||
Contractual Obligations [Line Items] | |||||||
Annual rent | 2,000,000 | ||||||
Tropicana Evansville Land Lease | Tier 1 | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, percent of adjusted gross revenues | 2.00% | ||||||
Tropicana Evansville Land Lease | Tier 1 | Maximum | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, adjusted gross revenues | 25,000,000 | ||||||
Tropicana Evansville Land Lease | Tier 2 | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, percent of adjusted gross revenues | 4.00% | ||||||
Tropicana Evansville Land Lease | Tier 2 | Minimum | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, adjusted gross revenues | 25,000,000 | ||||||
Tropicana Evansville Land Lease | Tier 2 | Maximum | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, adjusted gross revenues | 50,000,000 | ||||||
Tropicana Evansville Land Lease | Tier 3 | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, percent of adjusted gross revenues | 6.00% | ||||||
Tropicana Evansville Land Lease | Tier 3 | Minimum | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, adjusted gross revenues | 50,000,000 | ||||||
Tropicana Evansville Land Lease | Tier 3 | Maximum | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, adjusted gross revenues | 75,000,000 | ||||||
Tropicana Evansville Land Lease | Tier 4 | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, percent of adjusted gross revenues | 8.00% | ||||||
Tropicana Evansville Land Lease | Tier 4 | Minimum | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, adjusted gross revenues | 75,000,000 | ||||||
Tropicana Evansville Land Lease | Tier 4 | Maximum | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, adjusted gross revenues | 100,000,000 | ||||||
Tropicana Evansville Land Lease | Tier 5 | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, percent of adjusted gross revenues | 12.00% | ||||||
Tropicana Evansville Land Lease | Tier 5 | Minimum | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, adjusted gross revenues | 100,000,000 | ||||||
Belle of Baton Rouge Lease | Certain Land and Buildings | |||||||
Contractual Obligations [Line Items] | |||||||
Annual rent | 200,000 | ||||||
Belle of Baton Rouge Lease | Parking Lot | |||||||
Contractual Obligations [Line Items] | |||||||
Annual rent | 400,000 | ||||||
Rent payment calculation, percent of adjusted gross revenues | 0.94% | ||||||
Belle of Baton Rouge Lease | Minimum | Parking Lot | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, adjusted gross revenues | 45,000,000 | ||||||
Belle of Baton Rouge Lease | Maximum | Parking Lot | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, adjusted gross revenues | 80,000,000 | ||||||
Lighthouse Point Lease | |||||||
Contractual Obligations [Line Items] | |||||||
Number of acres leased | 4 | ||||||
Lighthouse Point Lease | Tier 1 | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment, percent of gross gaming revenues | 2.00% | ||||||
Lighthouse Point Lease | Tier 1 | Minimum | |||||||
Contractual Obligations [Line Items] | |||||||
Monthly payment base | 75,000 | ||||||
Lighthouse Point Lease | Tier 2 | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment, percent of gross gaming revenues | 8.00% | ||||||
Lighthouse Point Lease | Tier 2 | Minimum | |||||||
Contractual Obligations [Line Items] | |||||||
Rent payment calculation, annual gross gaming revenues | 36,600,000 | ||||||
Tropicana Greenville Lease | |||||||
Contractual Obligations [Line Items] | |||||||
Annual rent | 400,000 | ||||||
Lessee Leasing Arrangements, Operating Leases, Total Term of Contract Including Renewal Options | 25 years | ||||||
Tropicana Aruba Land Lease | |||||||
Contractual Obligations [Line Items] | |||||||
Number of acres leased | 14 | ||||||
Annual rent | $93,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Other (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 01, 2011 | Jan. 31, 2014 | Jan. 31, 2013 | Nov. 30, 2013 | |
Commitments and Contingencies [Line Items] | |||||||
Assessment of licensees, percentage of gross gaming revenues | 1.25% | ||||||
Assessment of Licensees, Percentage of Internet Gaming Gross Revenues | 2.50% | ||||||
Investment alternative tax, percentage of gross gaming revenues | 2.50% | ||||||
Investment Alternative Tax, Percentage of Internet Gaming Gross Revenues | 5.00% | ||||||
Predecessor claim settlement | $52,680,000 | $0 | $0 | ||||
2011 New Jersey Legislation | |||||||
Commitments and Contingencies [Line Items] | |||||||
Term of partnership | 5 years | ||||||
Required annual contribution due to new legislation | 30,000,000 | ||||||
The Company's share to provide funding for the Tourism District Bill | 3,200,000 | 2,400,000 | 2,500,000 | ||||
Portion of industry obligations due to new legislation | 11.20% | ||||||
New Jersey CRDA | |||||||
Commitments and Contingencies [Line Items] | |||||||
Assessment of licensees, percentage of gross gaming revenues | 1.25% | ||||||
Assessment of Licensees, Percentage of Internet Gaming Gross Revenues | 2.50% | ||||||
Investment alternative tax, percentage of gross gaming revenues | 2.50% | ||||||
Investment Alternative Tax, Percentage of Internet Gaming Gross Revenues | 5.00% | ||||||
Required additional investment, interest rate, portion of average market rate | 0.66667 | ||||||
New Jersey CRDA | New Jersey Casino Control Commission | |||||||
Commitments and Contingencies [Line Items] | |||||||
Tax rate, percent of gross casino revenue | 8.00% | ||||||
Commitment, Tax Rate, Percent of Internet Gaming Gross Revenue | 15.00% | ||||||
Wimar and CSC Administrative Expense Claims | |||||||
Commitments and Contingencies [Line Items] | |||||||
Loss contingency liability | 5,400,000 | 5,400,000 | |||||
Tropicana AC Tax Appeal Settlement | |||||||
Commitments and Contingencies [Line Items] | |||||||
Tax Refund as a Result of TAC Tax Appeal Settlement | 49,500,000 | ||||||
Real Estate Taxes to be paid after Credits from TAC Tax Appeal Settlement are Applied | 1,800,000 | ||||||
Real estate tax credits used | 16,000,000 | ||||||
Professional Fees | 4,100,000 | ||||||
Cash payment to satisfy future tax credits | 31,700,000 | ||||||
UNITE HERE Complaint [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Multiemployer Plans, Withdrawal Obligation | 4,000,000 | ||||||
Litigation Settlement, Amount | 4,000,000 | ||||||
Indiana Gross Income Tax Appeals and Assessments [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Litigation Settlement, Amount | 600,000 | ||||||
Adjustment Related to the Predecessors' Tax Claim Settlement | $8,300,000 |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 12 Months Ended | 1 Months Ended | 2 Months Ended | 10 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Mar. 07, 2010 | Dec. 31, 2010 | Dec. 31, 2011 | |
Class of Warrant or Right [Line Items] | |||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |||||
Common stock, par value | $0.01 | $0.01 | |||||
Common stock, shares issued | 26,312,500 | 26,312,500 | |||||
Common stock, shares outstanding | 26,312,500 | 26,312,500 | |||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||||
Preferred stock, par value | $0.01 | $0.01 | |||||
Loss on debt retirement | $0 | $4,897,000 | $12,847,000 | ||||
Board of Directors Chairman | |||||||
Class of Warrant or Right [Line Items] | |||||||
Beneficial ownership interest | 67.90% | ||||||
Penny Warrants | |||||||
Class of Warrant or Right [Line Items] | |||||||
Term of warrants | 3 months | ||||||
Warrants, exercise price | $0.01 | $0.01 | |||||
Assumed term of Warrants | 2 months 27 days | ||||||
Assumed volatility rate | 41.00% | ||||||
Assumed risk free interest rate | 0.16% | ||||||
Value of warrants | 19,500,000 | ||||||
Number of shares issuable by penny warrants issued | 1,312,500 | ||||||
Number of warrants exercised | 1,312,500 | ||||||
Loss on debt retirement | 5,500,000 | ||||||
$960 million 9 5/8% Senior Subordinated Notes | |||||||
Class of Warrant or Right [Line Items] | |||||||
Debt issuance amount | 960,000,000 | ||||||
Interest rate | 9.63% | ||||||
$960 million 9 5/8% Senior Subordinated Notes | Ordinary Warrants | |||||||
Class of Warrant or Right [Line Items] | |||||||
Number of shares issuable by warrants issued | 3,750,000 | ||||||
Term of warrants | 4 years 6 months | ||||||
Warrants, exercise price | $52.44 | ||||||
Assumed term of Warrants | 4 years 6 months | ||||||
Assumed volatility rate | 61.00% | ||||||
Assumed risk free interest rate | 2.36% | ||||||
Value of warrants | $11,500,000 |
BASIC_AND_DILUTED_NET_INCOME_P1
BASIC AND DILUTED NET INCOME PER SHARE (Details) (Ordinary Warrants) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Ordinary Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Ordinary warrants excluded from the calculation of diluted earnings per share | 3,750,000 | 3,750,000 |
EMPLOYEE_BENEFIT_PLANS_Retirem
EMPLOYEE BENEFIT PLANS - Retirement Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Employer matching contributions | $0 | $0 | $0 |
EMPLOYEE_BENEFIT_PLANS_Multiem
EMPLOYEE BENEFIT PLANS - Multiemployer Pension Plans (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 26, 2012 | Jun. 30, 2010 | Mar. 07, 2010 | |
Multiemployer Plans [Line Items] | ||||||
Contributions | $0 | $0 | $500,000 | |||
Percentage of the total contributions in which the Company's contributions does not exceed | 5.00% | |||||
Multiemployer Pension Plans | UNITE HERE National Retirement Fund | ||||||
Multiemployer Plans [Line Items] | ||||||
Contributions | 0 | 0 | 461,000 | |||
Multiemployer Plans, Withdrawal Obligation | 4,000,000 | |||||
Litigation Settlement, Amount | 4,000,000 | |||||
Multiemployer Pension Plans | International Union of Operating Engineers Local 68 Pension Fund [Member] | ||||||
Multiemployer Plans [Line Items] | ||||||
Multiemployer Plans, Withdrawal Obligation | $300,000 | $4,200,000 |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 01, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Sale price of assets associated with the operation of River Palms | $6,800,000 | |||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||||
Cash | 2,138,000 | |||
Receivables, net | 245,000 | |||
Property and equipment, net | 6,147,000 | |||
Other assets | 719,000 | |||
Total assets held for sale | 9,249,000 | |||
Accounts payable | 411,000 | |||
Accrued expenses and other liabilities | 1,237,000 | |||
Total liabilities related to assets held for sale | 0 | 1,648,000 | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Net revenues | 11,964,000 | 17,484,000 | 19,430,000 | |
Operating costs and expenses | -12,954,000 | -18,721,000 | -20,703,000 | |
Impairment of Long-Lived Assets to be Disposed of | 0 | -2,611,000 | 0 | |
Loss from operations | -990,000 | -3,848,000 | -1,273,000 | |
Income (loss) from disposal of discontinued operations, net | -233,000 | 0 | 0 | |
Income tax benefit (expense) | -406,000 | 104,000 | -540,000 | |
Loss from discontinued operations, net | ($1,629,000) | ($3,744,000) | ($1,813,000) |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current: | |||
Federal | $33,348,000 | $0 | ($313,000) |
State | 5,403,000 | 2,443,000 | 3,268,000 |
Total current | 38,751,000 | 2,443,000 | 2,955,000 |
Deferred: | |||
Federal | -176,140,000 | 84,000 | -84,000 |
State | -2,620,000 | 7,000 | -7,000 |
Total deferred | -178,760,000 | 91,000 | -91,000 |
Expense (benefit) from income taxes | -140,009,000 | 2,534,000 | 2,864,000 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Employment credits | -0.10% | -2.00% | 0.00% |
Permanent differences | 2.80% | 1.30% | 1.80% |
Disallowed foreign activity | 0.20% | 1.20% | 4.20% |
State tax | 1.30% | 7.40% | 9.40% |
Valuation allowance | -163.20% | -32.50% | -38.40% |
Effective tax rate | -124.00% | 10.40% | 12.00% |
Deferred tax assets: | |||
Receivables | 4,550,000 | 4,787,000 | |
Accrued compensation | 6,519,000 | 3,772,000 | |
Reserves/accrued liabilities | 3,392,000 | 1,991,000 | |
Net operating loss carryforward | 61,756,000 | 68,368,000 | |
Property and equipment | 131,405,000 | 135,385,000 | |
Credits/carryforwards | 132,000 | 2,320,000 | |
Other assets | 2,727,000 | 2,661,000 | |
Gross deferred tax assets | 210,481,000 | 219,284,000 | |
Valuation allowance | -26,409,000 | -214,606,000 | |
Total deferred tax assets | 184,072,000 | 4,678,000 | |
Deferred tax liabilities: | |||
Deductible prepaid expenses | -4,256,000 | -3,529,000 | |
Intangible assets | -20,715,000 | -20,808,000 | |
Total deferred tax liabilities | -24,971,000 | -24,337,000 | |
Deferred Tax Assets (Liabilities), Net | 159,101,000 | -19,659,000 | |
Decrease in valuation allowance | 188,200,000 | ||
Deferred tax assets, valuation allowance, adjustment | 3,500,000 | ||
Net operating loss carryforward | 161,200,000 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of period | 0 | 0 | 0 |
Reductions based on tax positions related to the prior year | 0 | 0 | 0 |
Reductions due to lapse of statute of limitations | 0 | 0 | 0 |
Unrecognized tax benefits, end of period | $0 | $0 | $0 |
SEGMENT_INFORMATION_Operating_
SEGMENT INFORMATION - Operating Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net revenues | $187,431 | $217,099 | $197,508 | $144,623 | $126,808 | $148,747 | $143,751 | $138,361 | $746,661 | $557,667 | $593,358 |
Operating income | 2,359 | 21,798 | 11,457 | 35,509 | 1,219 | 13,883 | 18,308 | 9,353 | 71,123 | 42,763 | 53,005 |
Interest expense | -12,873 | -14,331 | -17,161 | ||||||||
Interest income | 1,957 | 846 | 777 | ||||||||
Predecessor claim settlement | 52,680 | 0 | 0 | ||||||||
Loss on debt retirement | 0 | -4,897 | -12,847 | ||||||||
Income from continuing operations before income taxes | 112,887 | 24,381 | 23,774 | ||||||||
East Segment [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net revenues | 303,079 | 244,471 | 264,037 | ||||||||
Operating income | 44,121 | 11,188 | 2,059 | ||||||||
Central | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net revenues | 247,784 | 120,459 | 122,502 | ||||||||
Operating income | 30,119 | 27,977 | 27,002 | ||||||||
West | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net revenues | 103,147 | 101,769 | 101,087 | ||||||||
Operating income | 13,564 | 11,467 | 12,676 | ||||||||
South and Other Segments [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net revenues | 92,651 | 90,968 | 105,732 | ||||||||
Operating income | 10,337 | 4,748 | 20,413 | ||||||||
Corporate | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net revenues | 0 | 0 | 0 | ||||||||
Operating income | ($27,018) | ($12,617) | ($9,145) |
SEGMENT_INFORMATION_Assets_Det
SEGMENT INFORMATION - Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $1,289,690 | $1,043,621 |
Assets held for sale | 0 | 9,249 |
East Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 510,033 | 368,317 |
Central | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 409,976 | 151,139 |
West | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 121,889 | 111,786 |
South and Other Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 127,791 | 119,142 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $120,001 | $283,988 |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $187,431 | $217,099 | $197,508 | $144,623 | $126,808 | $148,747 | $143,751 | $138,361 | $746,661 | $557,667 | $593,358 |
Operating income | 2,359 | 21,798 | 11,457 | 35,509 | 1,219 | 13,883 | 18,308 | 9,353 | 71,123 | 42,763 | 53,005 |
Income from continuing operations | 211,887 | 12,072 | 4,936 | 24,001 | -6,401 | 9,129 | 13,840 | 5,279 | 252,896 | 21,847 | 20,910 |
Income (loss) from discontinued operations, net | -3,337 | 1,605 | -113 | 216 | -2,177 | -783 | -830 | 46 | -1,629 | -3,744 | -1,813 |
Net income | $208,550 | $13,677 | $4,823 | $24,217 | ($8,578) | $8,346 | $13,010 | $5,325 | $251,267 | $18,103 | $19,097 |
Basic and diluted income (loss) per common share attributable to Tropicana Entertainment Inc.: | |||||||||||
Income from continuing operations (in dollars per share) | $8.05 | $0.46 | $0.19 | $0.91 | ($0.24) | $0.35 | $0.53 | $0.20 | $9.61 | $0.83 | $0.79 |
Net income (loss) (in dollars per share) | $7.93 | $0.52 | $0.18 | $0.92 | ($0.33) | $0.32 | $0.49 | $0.20 | $9.55 | $0.69 | $0.73 |