DEI Document
DEI Document - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BREF HR, LLC | |
Entity Central Index Key | 1,531,537 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 21,838 | $ 13,303 |
Accounts receivable, net | 10,954 | 10,956 |
Inventories | 3,191 | 3,578 |
Prepaid expenses and other current assets | 4,432 | 3,070 |
Prepaid expenses and other current assets | 116 | 81 |
Restricted cash | 5,032 | 4,868 |
Total current assets | 45,563 | 35,856 |
Property and equipment, net | 441,289 | 456,929 |
Intangible assets, net | 62,911 | 66,449 |
Restricted cash | 18,842 | 22,746 |
Investment in joint venture | 920 | 1,223 |
Total assets | 569,525 | 583,203 |
Current liabilities | ||
Accounts payable | 4,142 | 5,220 |
Construction related payables | 197 | 307 |
Related party payables | 150 | 30 |
Accrued expenses | 16,516 | 16,167 |
Interest payable | 114,287 | 86,327 |
Current portion of long term debt | 811,398 | 743,362 |
Total current liabilities | 946,690 | 851,413 |
Long term accrued expenses | 172 | 0 |
Long term interest payable | 24,295 | 16,536 |
Long term debt - due to affiliate | 21,283 | 18,638 |
Total long term liabilities | 45,750 | 35,174 |
Total liabilities | $ 992,440 | $ 886,587 |
Commitments and contingencies | ||
Members' deficit | ||
Paid-in capital | $ 86,673 | $ 86,673 |
Accumulated deficit | (509,588) | (390,057) |
Total members' deficit | (422,915) | (303,384) |
Total liabilities and members' deficit | $ 569,525 | $ 583,203 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue | |||
Casino | $ 45,466 | $ 49,444 | $ 43,965 |
Lodging | 67,473 | 65,220 | 61,910 |
Food and beverage | 67,188 | 73,599 | 73,924 |
Entertainment, retail and other | 32,066 | 30,249 | 34,516 |
Gross revenues | 212,193 | 218,512 | 214,315 |
Less: Promotional allowances | (18,394) | (18,108) | (19,702) |
Net revenues | 193,799 | 200,404 | 194,613 |
Costs and expenses | |||
Casino | 35,669 | 34,600 | 35,593 |
Lodging | 21,151 | 21,214 | 19,797 |
Food and beverage | 39,912 | 44,128 | 43,540 |
Entertainment, retail and other | 19,107 | 19,700 | 22,875 |
Marketing | 8,116 | 9,069 | 9,324 |
Fee and expense reimbursements - related party | 2,092 | 3,646 | 1,836 |
General and administrative | 35,837 | 34,372 | 37,916 |
Depreciation and amortization | 30,211 | 29,936 | 30,916 |
Loss/(gain) loss on disposal of assets | 114 | (6) | (26) |
Pre-opening | 0 | 0 | 39 |
Impairment of intangible assets | 0 | 88 | 0 |
Total costs and expenses | 192,209 | 196,747 | 201,810 |
Income (loss) from operations | 1,590 | 3,657 | (7,197) |
Interest income | 8 | 12 | 23 |
Interest expense | (121,036) | (106,460) | (98,316) |
Loss on joint venture investment | (93) | (42) | (49) |
Net loss | (119,531) | (102,833) | (105,539) |
Comprehensive loss | $ (119,531) | $ (102,833) | $ (105,539) |
Consolidated Statements of Memb
Consolidated Statements of Members' Deficit - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | $ (303,384) | $ (200,551) | $ (303,384) | $ (200,551) | $ (95,012) | ||
Net loss | $ (31,224) | (27,110) | $ (30,053) | (23,663) | (119,531) | (102,833) | (105,539) |
Ending balance | (422,915) | (303,384) | (422,915) | (303,384) | (200,551) | ||
Paid-in Capital | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 86,673 | 86,673 | 86,673 | 86,673 | 86,673 | ||
Ending balance | 86,673 | 86,673 | 86,673 | 86,673 | 86,673 | ||
Accumulated Deficit | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | $ (390,057) | $ (287,224) | (390,057) | (287,224) | (181,685) | ||
Net loss | (119,531) | (102,833) | (105,539) | ||||
Ending balance | $ (509,588) | $ (390,057) | $ (509,588) | $ (390,057) | $ (287,224) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net loss | $ (119,531) | $ (102,833) | $ (105,539) |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation | 26,673 | 25,931 | 25,263 |
Provision for doubtful accounts | 2,245 | 737 | 77 |
Impairment of licenses and trademarks | 0 | 88 | 0 |
Amortization of intangible assets | 3,538 | 4,005 | 5,653 |
Amortization of debt discount | 47,274 | 38,110 | 34,173 |
Accrued non-cash interest applied to principal | 23,407 | 20,444 | 21,388 |
Premium amortization included in net loss | 0 | 0 | 64 |
Loss on joint venture investment | 93 | 42 | 49 |
Loss (gain) on disposal of assets | 114 | (6) | (26) |
(Increase) decrease in assets: | |||
Accounts receivable | (2,243) | (3,342) | (119) |
Inventories | 387 | (631) | (428) |
Prepaid expenses | (1,362) | (68) | 859 |
Related party receivable | (35) | 354 | 335 |
Increase (decrease) in liabilities: | |||
Accounts payable | (1,078) | (2,340) | 1,507 |
Related party payable | 120 | (190) | (186) |
Other accrued liabilities | 471 | (4,403) | (2,684) |
Accrued interest payable | 35,719 | 31,151 | 27,749 |
Net cash provided by operating activities | 15,792 | 7,049 | 8,135 |
Cash flows from investing activities | |||
Purchases of property and equipment | (10,899) | (3,852) | (5,153) |
Payments on construction related payable | (110) | (540) | 545 |
Restricted cash contributions | (10,252) | (10,916) | (10,331) |
Restricted cash withdrawals | 13,992 | 7,725 | 7,684 |
Loan to joint venture | 0 | 0 | (248) |
Return of investment | 210 | 160 | |
Repayments on joint venture debt | 0 | 0 | 363 |
Proceeds from disposal of operating assets | 22 | 6 | 72 |
Net cash used in investing activities | (7,037) | (7,417) | (7,068) |
Cash flows from financing activities | |||
Purchase of interest rate caps | 0 | 0 | (64) |
Capital lease payments | (220) | (423) | (567) |
Net cash used in financing activities | (220) | (423) | (631) |
Net increase (decrease) in cash and cash equivalents | 8,535 | (791) | 436 |
Cash and cash equivalents, beginning of period | 13,303 | 14,094 | 13,658 |
Cash and cash equivalents, end of period | 21,838 | 13,303 | 14,094 |
Supplemental disclosure of cash flow information | |||
Cash paid during the period for interest, net | 14,500 | 16,500 | 14,857 |
Supplemental disclosure of non-cash investing and financing activities | |||
Construction related payables | $ 197 | $ 307 | $ 847 |
Company Structure and Nature of
Company Structure and Nature of Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Structure and Nature of Business | Company Structure and Nature of Business BREF HR, LLC (the “Company”) is a Delaware limited liability company that was formed on February 11, 2011. The affairs of the Company are governed by a Limited Liability Company Agreement dated as of March 1, 2011 (the “LLC Agreement”). Unless otherwise specified, references to the terms the “Company”, “we”, “us” or “our” refer to BREF HR, LLC and its consolidated subsidiaries, or any one or more of them, as the context may require. The Company was formed by certain affiliates of Brookfield Financial, LLC (“Brookfield Financial”) to acquire the limited liability company interests of HRHH JV Junior Mezz, LLC (“HRHH JV Junior Mezz”) and HRHH Gaming Junior Mezz, LLC (“HRHH Gaming Junior Mezz”), which indirectly own the Hard Rock Hotel & Casino Las Vegas and certain related assets. These assets were acquired pursuant to the assignment (the "Assignment") from Hard Rock Hotel Holdings, LLC (“HRH Holdings”) in connection with the default by HRH Holdings and its subsidiaries on a real estate financing facility (the “Facility”), and the resulting settlement agreement, as described below. Brookfield Financial is managed by Brookfield Real Estate Financial Partners LLC (together with its affiliates, “Brookfield”). As part of the Assignment, the Company assumed the obligations under the Facility and entered into an amendment thereof (as amended, the “Amended Facility”) between Vegas HR Private Limited (the "Mortgage Lender") and the Company. Pursuant to the Amended Facility, the land, building and improvements, equipment, fixtures and all personal property relating to the Hard Rock Hotel & Casino Las Vegas were pledged as security and collateral. Also, as part of the Assignment, the Company entered into a second mortgage loan agreement with Brookfield Financial, as lender, (the “Second Mortgage”) in the amount of $30.0 million pursuant to which certain land, building and improvements, equipment, fixtures and personal property were pledged as security and collateral. The Second Mortgage is subordinate in right of payment to the Amended Facility. Since March 1, 2011, the Hard Rock Hotel & Casino Las Vegas and related assets have been owned by the Company pursuant to the Assignment. In connection with agreements entered into in relation to the Assignment, the Company and specified affiliates are contingently liable to distribute certain excess cash flows to specific former lenders and owners of HRH Holdings. These amounts are payable pursuant to the terms of these agreements only in the event that the existing lenders under the Amended Facility and the Second Mortgage agreements are paid specified values in full. After considering the forecasted future performance of the Hard Rock Hotel & Casino Las Vegas and the cash distribution structure specified in the Amended Facility and the Second Mortgage, the Company has determined that the probability that any amounts will be distributed is remote and therfore no value has been attributed to these commitments. The Assignment was accounted for as a business combination in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 805, Business Combinations . All assets and liabilities were recorded at their respective fair values as of the date of foreclosure. We operate as a single reportable segment. Going Concern Over the past three years we have incurred substantial net losses including $119.5 million for the year ended December 31, 2015 , and have a net members' deficit of $422.9 million as of December 31, 2015 . The Amended Facility (as defined below) allows the Company to accrue "paid-in-kind" interest ("PIK interest"), representing the difference between interest accruing under the Amended Facility and the amounts paid. The outstanding PIK interest as of December 31, 2015 was $83.7 million . The PIK interest outstanding as of March 1, 2014 in the amount of $44.3 million became due and payable on March 3, 2014, as the operating performance of the Company did not meet a specified debt yield threshold for the twelve month period ending March 1, 2014. However, the lender entered into a Forbearance Agreement effective as of March 1, 2014, pursuant to which it agreed not to exercise any rights or remedies with respect to the PIK interest. The lender entered into a series of amendments to the Forbearance Agreement which each time extended the effective date to which the lender agreed it would not exercise any rights or remedies with respect to the PIK interest. The most recent amendment to the Forbearance Agreement, the Twenty-Third Amendment, is effective as of March 7, 2016 , pursuant to which the lender agreed not to exercise any rights or remedies with respect to the PIK interest until April 4, 2016 . Currently, the Company does not have sufficient funds to satisfy a demand for the PIK interest payment on April 4, 2016 . The Company is currently assessing its options to satisfy the PIK interest payment obligation, including, but not limited to, negotiating a waiver of this requirement from the lender, restructuring the Amended Facility with the lender, selling off a portion of existing collateral or attempting to obtain borrowings or additional equity funding from our current ownership or other sources. The Company's ability to continue as a going concern is dependent upon its ability to negotiate a waiver, restructure its indebtedness, obtain alternative financing on acceptable terms, obtain approval from the lender to use available cash reserves to satisfy a portion of this potential obligation, or otherwise satisfy our PIK interest payment obligation. However, there is no certainty on the outcome. We have placed mortgages on our hotel casino property to secure our indebtedness. In the event the PIK interest is not paid on April 4, 2016 , among other lesser remedies, the lender may declare all unpaid principal and accrued interest under the Amended Facility due and payable immediately. If the PIK payment is not made on April 4, 2016 , we risk losing some or all of our property to foreclosure. If this occurs, our business and results of operations would be materially adversely affected. These uncertainties raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements have been prepared on a going concern basis, which assumes continuity of operations and realization of assets and liabilities in the ordinary course of business. The consolidated financial statements do not include any adjustments that might result from the outcome of uncertainties, including the possibility that the Company loses some or substantially all of its assets to foreclosure as a result of these uncertainties. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. 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 consolidated financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates, and those differences could be material. Certain amounts reported in the prior period on the audited consolidated statements of operations and comprehensive loss have been combined to conform to the current presentation. Retail revenues and other revenues have been combined into entertainment, retail and other revenues, and retail expenses and other expenses have been combined into entertainment, retail and other expenses. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and in banks and interest-bearing deposits with maturities at the date of purchase of three months or less. Cash equivalents are carried at cost which approximates fair value. Restricted Cash We are obligated to maintain certain cash reserve funds for a variety of purposes as determined pursuant to the Amended Facility, including a requirement to deposit funds into a replacements and refurbishments reserve fund at amounts equal to three percent of the Hard Rock Hotel & Casino Las Vegas' gross revenues. The funds are continuously being used for capital expenditures and contributions are being made on a monthly basis in order to meet the requirements of the Amended Facility. Restricted cash consists of the following: ($ in thousands) December 31, 2015 December 31, 2014 Current Tax reserves $ 2,707 $ 3,095 Insurance reserves 1,407 893 Other reserves 363 363 Workers' compensation reserves 555 517 Total current restricted cash 5,032 4,868 Long-term Working capital reserves 15,026 15,048 Replacement reserves 3,816 7,698 Total long-term restricted cash 18,842 22,746 Total restricted cash $ 23,874 $ 27,614 Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of casino accounts receivable. The Company issues credit in the form of “markers” to approved casino customers following investigations of creditworthiness. Business or economic conditions or other significant events could affect the collectability of such receivables. Substantially all accounts receivable are unsecured and are due primarily from casino and hotel patrons and convention functions. Non-performance by these parties would result in losses up to the recorded amount of the related receivables. Management does not anticipate significant non-performance and believes that they have adequately provided for uncollectible receivables. Accounts receivable, including casino and hotel receivables, are typically non-interest bearing and are initially recorded at cost. Accounts are written off when management deems them to be uncollectible. Recoveries of accounts previously written off are recorded when received. An estimated allowance for doubtful accounts is maintained to reduce the receivables to their carrying amount, which approximates fair value. Such allowances are estimated based on specific review of customer accounts as well as management's experience with collection trends in the casino industry and current economic and business conditions. Inventories Inventories are stated at the lower of cost (determined using the first-in, first-out method), or market. Property and Equipment, Net Land improvements, buildings and improvements, equipment, furniture and fixtures, and memorabilia were recorded at cost, except for those for which a fair value analysis was prepared as of March 1, 2011. There was no significant amounts of interest capitalized for any periods presented. Depreciation is computed using the straight-line method over the property and equipment's estimated useful lives are as follows: Building and Building improvements 15-40 years Equipment, furniture and fixtures 3-10 years Gains or losses arising from dispositions are included in costs and expenses in the statements of operations. Costs of major improvements are capitalized, while costs of normal repairs and maintenance are charged to expense as incurred. Substantially all property and equipment is pledged as collateral for long-term debt at December 31, 2015 and 2014 . For assets to be disposed of, the Company recognizes the asset at the lower of carrying value or fair market value less costs of disposal, as estimated based on comparable asset sales, solicited offers, or a discounted cash flow model. We treat memorabilia as an indefinite-lived asset and therefore it is not depreciated. Finite-lived Intangible Assets Intangible assets that have a definite life, such as in-place contracts, trade names, customer relationships, sponsorship agreements, market leases and other amortizing intangible assets are ratably amortized on a straight-line basis over the estimated useful life, which approximates pattern of use, and ranges from one to six years. Player Relationships are amortized on an accelerated basis consistent with the expected timing of the Company’s realization of the economic benefits of such relationships. Valuation of Long-lived Assets Property and Equipment, Net The Company evaluates its property and equipment and other long-lived assets for impairment based on its classification as held for sale or to be held and used. Several criteria must be met before an asset is classified as held for sale, including that management with the appropriate authority commits to a plan to sell the asset at a reasonable price in relation to its fair value and is actively seeking a buyer. For assets to be held and used (including projects under development), fixed assets are reviewed for impairment whenever indicators of impairment exist. If an indicator of impairment exists, the Company first groups its assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (the "asset group"). Secondly, the Company estimates the undiscounted future cash flows that are directly associated with and expected to arise from the completion, use and eventual disposition of such asset group. The Company estimates the undiscounted cash flows over the remaining useful life of the primary asset within the asset group. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, then an impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model. If an asset is still under development, future cash flows include remaining construction costs. Indefinite-lived Intangible Assets The Company performs an annual impairment test for indefinite-lived intangible assets at December 31 of each year, or more frequently if impairment indicators exist. The impairment test consists of comparing the fair value of the asset with its carrying amount, and, if the carrying amount exceeds its fair value, an impairment loss would be recognized for the carrying amount in excess of its implied fair value. The Hard Rock licensing intangible asset is tested for impairment using the relief from royalty method based on the estimated present value of future revenues and an assumed royalty rate. Future Trademark licensing intangible asset is tested for impairment using the estimated discounted cash flows of the future royalty income streams. Finite-lived Intangible Assets The Company reviews the carrying value of its intangible assets that have a definite life for possible impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The Company then compares the estimated future cash flows of the asset, on an undiscounted basis, 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 do not exceed the carrying value, then an impairment is recorded based on the fair value of the asset, typically measured using a discounted cash flow model. All recognized impairment losses, whether for assets held for sale or assets to be held and used, are recorded as operating expenses. Inherent in reviewing the carrying amounts of the above assets is the use of various estimates. First, the Company must determine the usage of the asset. Impairment of an asset is more likely to be recognized where and to the extent management of the Company decides that such asset may be disposed of or sold. Assets must be tested at the lowest level for which identifiable cash flows exist. This testing means that some assets must be grouped and management of the Company exercises some judgment in grouping those assets. Future cash flow estimates are, by their nature, subjective and actual results may differ materially from estimates. If ongoing estimates of future cash flows are not met, the Company may have to record additional impairment charges in future accounting periods. Estimates of cash flows for the Company are based on the current regulatory, social and economic environment where operations are or were conducted as well as recent operating information and budgets for the Company’s business. 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 Hard Rock Hotel & Casino Las Vegas. Allowance for Uncollectible Receivables Accounts receivable, including casino and hotel receivables, are typically non-interest bearing and are initially recorded at cost. Accounts are written off when management deems them to be uncollectible. Recoveries of accounts previously written off are recorded when received. An estimated allowance for doubtful accounts is maintained to reduce our receivables to their carrying amount, which approximates fair value. The allowance is estimated based on specific review of customer accounts as well as our management’s experience with collection trends in the casino industry and current economic and business conditions. Our management's estimates consider, among other factors, the age of the receivables, the type or source of the receivables, and the results of collection efforts to date, especially with regard to significant accounts. Change in customer liquidity or financial condition could affect the collectability of that account, resulting in adjustment to the provision for bad debts, with a corresponding impact to our results of operations. Advertising Expenses The costs of all advertising campaigns and promotions are expensed as incurred. Total advertising expense (exclusive of amounts related to pre-opening) for the years ended December 31, 2015 , 2014 and 2013 was $6.0 million , $6.6 million and $6.5 million , respectively. Income Taxes The Company is treated as a limited liability company and its default classification for tax purposes is that of a disregarded entity not subject to federal income taxes. Accordingly, the Company makes no provision for federal income taxes in its financial statements. The Company’s federal taxable income or loss, which is different than financial statement income or loss, is reportable by the member. The Company’s members are responsible for reporting their allocable share of the Company’s income, gains, deductions, losses and credits on their individual income tax returns. Revenues Casino revenues are derived from patrons wagering on table games, slot machines and poker. Table games generally include Blackjack or Twenty One, Craps, Baccarat and Roulette. Casino revenue is defined as the win from gaming activities, computed as the difference between gaming wins and losses, not the total amounts wagered. Casino revenue is recognized at the end of each gaming day. Lodging revenues are derived from rooms and suites rented to guests and include related revenues for incidental services. Room revenue is recognized at the time the room or service is provided to the guest. Food and beverage revenues are derived from food and beverage sales in the food outlets, including restaurants, room service, banquets and nightclub. Food and beverage revenue is recognized at the time the food and/or beverage is provided to the guest. Entertainment, retail and other revenues include retail sales, entertainment revenue, spa fees, fees for licensing the “Hard Rock” brand and other miscellaneous income. Revenues are recognized at the point in time the retail sale occurs, when entertainment and spa services are provided to the guest, or when licensing fees become due and payable. Revenues are recognized net of certain sales incentives, including points redeemed for cash through customer loyalty programs, such as the player's club loyalty program, amounts of reimbursed airfare and marker discounts. Complimentaries Revenues include the retail value of rooms, food and beverage, and other complimentaries provided to casino customers without charge, which are then subtracted to arrive at net revenues. Estimated Retail Value of Casino Complimentaries For the year ended December 31, ($ in thousands) 2015 2014 2013 Food and beverage $ 8,101 $ 8,245 $ 9,729 Lodging 8,822 8,835 8,414 Other 1,471 1,028 1,559 $ 18,394 $ 18,108 $ 19,702 The allocated costs of providing such complimentaries have been classified as casino operating expenses as follows: Estimated Cost of Provided Casino Complimentaries For the year ended December 31, ($ in thousands) 2015 2014 2013 Food and beverage $ 5,553 $ 5,703 $ 5,102 Lodging 3,288 3,410 3,216 Other 968 746 1,045 $ 9,809 $ 9,859 $ 9,363 Derivative Instruments and Hedging Activities All derivative instruments are recorded at fair value. The accounting for changes in the fair value of derivative instruments depends on the intended use of the derivative instruments and the resulting designation. Derivative instruments used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivative instruments used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For derivative instruments designated as cash flow hedges, the effective portion of changes in the fair value of the derivative instrument is initially reported in other comprehensive income (outside of earnings) and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative instrument is recognized directly in earnings. The effectiveness of each hedging relationship is assessed under the hypothetical derivative method, whereby the cumulative change in fair value of the actual derivative instrument is compared to the cumulative change in fair value of a hypothetical derivative instrument having terms that exactly match the critical terms of the hedged transaction. For derivative instruments that do not qualify for hedge accounting or when hedge accounting is discontinued, the changes in fair value of the derivative instrument are recognized directly in earnings. The objective in using derivative instruments is to add stability to our interest expense and to manage exposure to interest rate movements or other identified risks. Interest rate caps are used as part of a cash flow hedging strategy. There were no outstanding derivatives at December 31, 2015 and 2014. Fair Value of Financial Instruments Fair value is a market-based measurement, not an entity-specific measurement. Therefore, fair value measurement is determined based on assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy is used to distinguish between market participant assumptions based on market data obtained from sources independent of the reporting entity as follows: Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2: Inputs, other than quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Debt. To determine the fair value of our debt the Company utilizes a discounted cash flow model. The discount rate is determined utilizing historical market-based equity returns which are adjusted, as necessary, for entity specific factors. The Company has determined that our debt valuations are classified in Level 3 of the fair value hierarchy. As of December 31, 2015 and 2014 , the fair value of the Company’s debt was estimated to be $550.0 million and $ 610 million , respectively, and the carrying amount was $832.7 million and $762.0 million , respectively. Recently Issued and Adopted Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers , (Topic 606) , which supersedes most of the current revenue recognition requirements ("ASU No. 2014-09"). The core principle of this guidance is that an entity is required to recognize revenue to depict the transfer of promised 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. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. Entities must adopt the new guidance using one of two retrospective application methods. For public business entities, certain not-for-profit entities and certain employee benefit plans, the guidance in ASU No. 2014-09 should be applied to annual reporting periods beginning after December 15, 2017, including interim reporting periods within those reporting periods. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company will adopt this standard effective January 1, 2018. We are currently assessing the impact the adoption of this standard will have on our disclosures and results of operations. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern, (Subtopic 205-40) , which requires an entity's management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The entity must also disclose whether or not the substantial doubt is or is not alleviated as a result of consideration of management's plans. The guidance in ASU No. 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim period thereafter. Early application is permitted. The Company will adopt this standard effective January 1, 2016. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest , (Subtopic 835-30), ("ASU No. 2015-03"), which is intended to simplify the presentation of debt issuance costs. The guidance in ASU No. 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the guidance in ASU No. 2015-03. For public business entities, the guidance in ASU No. 2015-03 is effective for financial statements issued for fiscal years beginning after December 31, 2015, and interim periods within those fiscal years. Early adoption of the guidance is permitted for financial statements that have not been previously issued. The adoption of this will result in a reclassification between assets and liabilities but will have no effect on our income statement. In July 2015, the FASB issued ASU No. 2015-11, Inventory, (Topic 330), ( "ASU No. 2015-11"), which provides that inventory measured using any method other than last-in, first-out (LIFO) or the retail inventory method (for example, inventory measured using first-in, first-out (FIFO) or average cost) should be measured at the lower of cost and net realizable value. For public business entities, the guidance in ASU No. 2015-11 is effective for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The guidance in ASU No. 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Because the Company 's inventories are stated at the lower of cost (determined using the first-in, first-out method) or market, we do not expect the adoption of this standard to have a material effect on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, (Topic 842) , ("ASU No. 2016-02), which provides that a lessee should recognize the assets and liabilities that arise from leases. The guidance in ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, for public business entities, certain not-for-profit entities and certain employee benefit plans. Early adoption of this guidance is permitted for all entities. The Company will adopt this standard effective January 1, 2019. The Company is beginning to assess its impact on its financial statements. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable Components of accounts receivable, net consists of the following: As of December 31, ($ in thousands) 2015 2014 Casino $ 4,628 $ 5,624 Lodging 4,154 3,496 Other 3,746 3,083 12,528 12,203 Less: allowance for doubtful accounts and discount reserve (1,574 ) (1,247 ) Total accounts receivable, net $ 10,954 $ 10,956 Activity in the allowance for doubtful accounts was as follows: ($ in thousands) Balance at December 31, 2012 $ 959 Bad debt expense (recoveries) 77 Write offs, net of collections (357 ) Balance at December 31, 2013 679 Bad debt expense (recoveries) 737 Write offs, net of collections (169 ) Balance at December 31, 2014 1,247 Bad debt expense (recoveries) 2,245 Write offs, net of collections (1,918 ) Balance at December 31, 2015 $ 1,574 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: As of December 31, ($ in thousands) 2015 2014 Restaurants and bars $ 2,297 $ 2,495 Retail merchandise 761 963 Other inventory and operating supplies 133 120 Total inventories $ 3,191 $ 3,578 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consists of the following: As of December 31, ($ in thousands) 2015 2014 Land $ 115,600 $ 115,600 Buildings and building improvements 347,424 343,375 Furniture, fixtures and equipment 88,698 83,094 Memorabilia 7,100 7,046 558,822 549,115 Less: accumulated depreciation (119,008 ) (92,751 ) Construction in progress 1,475 565 Total property and equipment, net $ 441,289 $ 456,929 Depreciation relating to property and equipment for the Company was $ 26.7 million , $ 25.9 million and $ 25.3 million for the years ended December 31, 2015 , 2014 and 2013, respectively. On September 15, 2015, the Company entered into an agreement to exchange a parcel of excess undeveloped land with a carrying value of $4.5 million (the land relinquished), for undeveloped land adjacent to the Hard Rock Casino property (the land received) (the "Exchange"). The Exchange closed on November 5, 2015. The fair value of the Company's land relinquished in the Exchange was in excess of the carrying value as of September 30, 2015, and as the Company is not anticipating any identifiable change in the future cash flows resulting from the Exchange and currently does not have any plan for the use of the land received, the Company recorded the land received at the carrying value of the land relinquished, with no gain or loss being recognized. All transaction costs related to the Exchange were paid by the other party. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets, net consists of the following: December 31, 2015 ($ in thousands) Gross Carrying Amount Accumulated Impairment Losses Accumulated Amortization Net Carrying Amount Remaining life (years) Non-amortizing intangible assets Hard Rock licensing $ 55,000 $ (15,000 ) $ — $ 40,000 Indefinite Future Trademark licensing 7,000 7,000 Indefinite 62,000 (15,000 ) — 47,000 Amortizing intangible assets In-place contracts 29,000 (6,175 ) (12,492 ) 10,333 6 Market leases 1,736 — (1,278 ) 458 0-6 Player Relationships 10,000 — (5,603 ) 4,397 6 Other 2,200 (88 ) (1,389 ) 723 6 42,936 (6,263 ) (20,762 ) 15,911 Total intangible assets, net $ 104,936 $ (21,263 ) $ (20,762 ) $ 62,911 December 31, 2014 ($ in thousands) Gross Carrying Amount Accumulated Impairment Losses Accumulated Amortization Net Carrying Amount Non-amortizing intangible assets Hard Rock licensing $ 55,000 $ (15,000 ) $ — $ 40,000 Future Trademark licensing 7,000 — — 7,000 62,000 (15,000 ) — 47,000 Amortizing intangible assets In-place contracts 29,000 (6,175 ) (10,492 ) 12,333 Market leases 1,736 — (1,137 ) 599 Player Relationships 10,000 — (4,752 ) 5,248 Other 2,200 (88 ) (843 ) 1,269 42,936 (6,263 ) (17,224 ) 19,449 Total intangible assets, net $ 104,936 $ (21,263 ) $ (17,224 ) $ 66,449 For the years ended December 31, 2015 , 2014 , and 2013 the Company recorded amortization expense of $3.5 million , $4.0 million and $5.7 million , respectively. The estimated amortization expense for the above amortizing intangible assets for each of the five succeeding fiscal years beginning December 31, 2016 is $ 3.1 million , $ 3.1 million , $ 3.1 million , $ 3.1 million and $ 3.0 million , respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following: As of December 31, ($ in thousands) 2015 2014 Current Deferred income $ 48 $ 184 Capital leases obligations 55 177 Advance room, convention and customer deposits 5,238 5,947 Accrued salaries, payroll taxes and other employee benefits 1,514 1,873 Accrued miscellaneous taxes 1,654 1,431 Reserve for general liability and accrued legal claims 5,091 3,383 Other accrued liabilities 2,916 3,172 Total current accrued expenses 16,516 16,167 Long term Capital leases obligations 172 — Total long term accrued expenses 172 — Total accrued expenses $ 16,688 $ 16,167 |
Agreements with Related Parties
Agreements with Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Agreements with Related Parties | Agreements with Related Parties Resort Management Agreement On March 1, 2011, the Company and WG-Harmon entered into a Resort Management Agreement, which agreement was subsequently amended on June 15, 2012, November 11, 2013 and March 28, 2016 (as amended, the “Amended Resort Management Agreement”), pursuant to which WG- Harmon manages the Hard Rock Hotel & Casino Las Vegas, including the gaming operations and the liquor operations. During the years ended December 31, 2015, 2014 and 2013, the Company incurred $2.1 million , $3.6 million , and $1.8 million , respectively, in management and incentive fees under the Amended Resort Management Agreement. As of December 31, 2015 and 2014, the Company had $0.1 million and $0 , respectively, payable to WG-Harmon which are included in related party payables on the consolidated balance sheets. Under the terms of the Amended Resort Management Agreement, as most recently amended, began on March 28, 2016 and will continue until March 31, 2017. The Company is required to pay WG-Harmon a base fee in the amount of $150,000 per month, payable monthly. In addition to such base fee, the Company is required to pay WG-Harmon an incentive management fee based on the performance of the adjusted EBITDA of the Hard Rock Hotel & Casino Las Vegas, as set forth in the Amended Resort Management Agreement. Second Mortgage Loan Agreement As of December 31, 2015 and 2014 the Company had accrued interest of $7.8 million and $6.0 million , respectively, under the Second Mortgage which is included in long term accrued expenses on the consolidated balance sheets. Investment in Joint Venture During 2012, CDO Restaurant Associates LLC (“CDO”), a Delaware limited liability company, was formed between the Company and Fox Restaurant Concepts, LLC (“Fox”) to operate a restaurant, Culinary Dropout, out of leased space at the Hard Rock Hotel and Casino Las Vegas. In 2012, the Company contributed 80% of the initial construction and pre-opening budget, or $2.1 million , and also loaned CDO $100,000 to cover pre-opening costs in excess of initial budgeted amounts. In 2012, the Company loaned CDO an additional $248,000 to cover final construction costs in excess of budgeted amounts. As of December 31, 2014, all loans have been repaid in full. The Company determined that the investment in CDO should be accounted for as an equity method investment. The loans bore interest at the greater of 8% or the reference rate publicly announced by Bank of America N.T. & S.A plus 4% . Loans were required to be repaid before any other distributions of net cash flow. Net cash flow would then be distributed in proportion to the Members’ initial capital contributions, plus an 8% preferred return, and, once paid in full, in accordance with the 50% membership interest. The Company accounts for its investment in CDO under the equity method based on applicable accounting guidance as the Company does not hold a controlling financial interest in CDO. For the years ended December 31, 2015 , 2014 and 2013, the Company recorded losses of $93,000 , $42,000 and $49,000 , respectively, related to its equity in CDO. The Company’s share of the joint venture’s loss is included in equity in income of joint venture in the accompanying consolidated statements of operations. At December 31, 2015 and 2014 , the Company’s net investment in CDO was $0.9 million and $1.2 million , respectively, which is included in other assets in the accompanying consolidated balance sheets. The classification of the investment in joint venture was based on the expected timing of the repayment of the initial construction and pre-opening budget contribution. There were no distributions to the members for the years ended December 31, 2015 and 2014 . CDO leases space from the Company under a ten -year operating lease expiring in August 2022. The lease has one five -year renewal option. Rent is paid monthly based upon a percentage of sales, as defined in the agreement. For the years ended December 31, 2015, 2014 and 2013 total rent payments received were $255,000 , $251,000 and $296,000 , respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table presents debt outstanding as of December 31, 2015 and 2014 : ($ in thousands) Face value Book value Face value Book value Project name/lender 2015 2015 2014 2014 Amended facility - Note A/Vegas HR Private Limited $ 619,065 $ 574,975 $ 595,658 $ 536,993 Amended facility - Note B/Vegas HR Private Limited 327,290 236,423 327,290 206,369 Second Mortgage - Brookfield Financial 30,000 21,283 30,000 18,638 Total debt 976,355 832,681 952,948 762,000 Current portion of long-term debt (946,355 ) (811,398 ) (922,948 ) (743,362 ) Total long-term debt $ 30,000 $ 21,283 $ 30,000 $ 18,638 The difference between the face and book value of the debt represents debt discounts that are amortized to interest expense using the effective interest method over the term of the debt. As of December 31, 2015 , the Company has outstanding $114.3 million in supplemental interest under the Amended Facility. In addition, the Company contractually owes $21.2 million under the Second Mortgage, the difference representing application of the effective interest method. Amended Facility. The Amended Facility has a maturity date of March 1, 2018 and provides for interest only (until maturity) at The London InterBank Offered Rate ( LIBOR ) plus 2.5% with a 1.5% LIBOR floor (total of 4% ) at December 31, 2015 . In addition, supplemental interest is accrued at a rate sufficient to provide for the greater of 6.5% or LIBOR plus 4% effective interest rate at maturity after consideration of all prior payments of principal and interest. The rates of accrual are dependent on fluctuations in the applicable LIBOR rate. The Amended Facility has a provision whereby if the cash available for debt service is less that the current interest due, the PIK interest will be automatically added to the outstanding principal balance of the Amended Facility and shall thereafter accrue interest. In addition, excess cash in the cash management account will be applied to the outstanding PIK interest, supplemental interest and principal according to the terms of the Amended Facility. The Amended Facility requires that the Company repay in full all PIK interest outstanding on March 1, 2014 in the event the Company has not made sufficient payments to the lender to provide a specified debt yield for the twelve month period ending March 1, 2014, on the terms specified in the Amended Facility. The Company did not meet the specified debt yield threshold as of March 1, 2014. However, the lender entered into a Forbearance Agreement effective as of March 1, 2014, pursuant to which it agreed not to exercise any rights or remedies with respect to the PIK interest. The lender entered into a series of amendments to the Forbearance Agreement which each time extended the effective date to which the lender agreed it would not exercise any rights or remedies with respect to the PIK interest. The most recent amendment to the Forbearance Agreement, the Twenty-Third Amendment, is effective as of March 7, 2016 , pursuant to which the lender agreed not to exercise any rights or remedies with respect to the PIK interest until April 4, 2016 . Currently, the Company does not have sufficient funds to satisfy a demand for the PIK interest payment on April 4, 2016 . The Company is currently assessing its options to satisfy the PIK interest payment obligation, including, but not limited to, negotiating a waiver of this requirement from the lender, restructuring the Amended Facility with the lender, selling off a portion of existing collateral or attempting to obtain borrowings or additional equity funding from our current ownership or other sources. However, there is no certainty on the outcome. If the PIK payment is not made on April 4, 2016 we risk losing some or all of our property to foreclosure. If this occurs, our business and results of operations would be materially adversely affected. The outstanding PIK interest as of December 31, 2015 and 2014 was $ 83.7 million and $ 60.3 million , respectively. See further discussion in Note 1, Company Structure and Nature of Business. The total amount of the Company’s debt, under certain exceptions described in the Amended Facility, is due on March 1, 2018, and no principal payments are due until then. All amounts due under the Amended Facility have been classified as current in the consolidated balance sheets due to the anticipated event of default as a result of the inability to pay the outstanding PIK interest on April 4, 2016 . Second Mortgage. On March 1, 2011, as part of the Assignment, the Company entered into the Second Mortgage with Brookfield Financial in the amount of $30.0 million pursuant to which certain land, building and improvements, equipment, fixtures and personal property were pledged as security and collateral. The Second Mortgage is subordinate in right of payment to the Amended Facility. The maturity date of the Second Mortgage is March 1, 2018 and provides for an effective interest rate of 15% payable at maturity. The Amended Facility and Second Mortgage include affirmative and negative covenants, including, among others, restrictive covenants regarding incurrence of liens, sales of assets, distributions to affiliates, changes in business, cancellation of indebtedness, dissolutions, mergers and consolidations, as well as limitations on security issuances, transfers of any of the Company's real property and removal of any material article of furniture, fixture or equipment from the Company's real property. As of December 31, 2015 , the Company was in compliance with all such covenants. The estimated annual amortization of the debt discounts under the effective interest method assuming estimated future cash flow payments of the Amended Facility and the Second Mortgage (assuming continued forbearance) for each of the four succeeding years is as follows: ($ in thousands) Amortization - Amended Facility Amortization - Second Mortgage 2016 $ 57,483 $ 3,439 2017 66,272 4,445 2018 11,322 833 2019 — — Total $ 135,077 $ 8,717 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies The Company and affiliates Brookfield Real Estate Financial Partners, LLC, Brookfield Financial, LLC - Series B, and Brookfield Asset Management (US), Inc. are currently amongst a number of defendants (“Defendants”) in an action commenced by Mace Management Group, LLC (“Mace) and Mandown, LLC (“Mandown”) on June 12, 2012 in Nevada’s Eighth Judicial District Court in Clark County, Nevada (the “Mace/Mandown Action”). The Mace/Mandown Action relates to investments made by Mace/Mandown in Wasted Space Lounge, Rare 120 restaurant, the Johnny Smalls restaurant and Vanity nightclub (collectively, the “Venues”) at the Hard Rock Hotel and Casino Las Vegas. In general, all claims assert that actions taken by Defendants allegedly deprived Mace/Mandown of their initial investment and/or their share of profits from the Venues. The Mace/Mandown Action is still in the discovery stages and management has determined that based on the proceedings to date it does not believe the outcome of this matter will have a material effect on the business, results of operations or financial condition of the Company , nor have a material effect on the financial statements of the Company as a whole. We are also subject to a variety of other claims and lawsuits that arise in the ordinary course of our business. We do not believe the outcome of these and the other matters disclosed above will have a material effect on our business, results of operations or financial condition. As of December 31, 2015 , the Company accrued approximately $4.8 million for all loss contingency matters and our best estimate of reasonably possible losses in excess of the amount accrued is not material to the financial statements. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation Related Costs [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has a 401(k) profit sharing plan, as amended on June 29, 2015, whereby all employees over the age of 21 who have completed nine months of employment are eligible for the plan. Such employees joining the plan may contribute, through salary deductions, no less than 1% nor greater than 50% of their annual compensation. The Company currently does not match contributions to the plan and recorded no charges for 401(k) contributions years ended December 31, 2015 and 2014 . |
Membership Interests
Membership Interests | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Membership Interests | Membership Interests Classes of Membership Interests We have two classes of membership interests: Class A Units and Class B Units, each of which is 100%-owned by its members. Holders of Class A Units are entitled to vote on any matter to be voted upon by our members. Except as provided by law, the holders of Class B Units do not have any right to vote. Holders of Class A Units or Class B Units have no redemption rights or conversion rights and do not benefit from any sinking fund. Additional Capital Contributions The members are not required to make any additional capital contributions to the Company. However, the members may make additional capital contributions to the Company at any time. During the years ended December 31, 2015 and 2014 , no capital contributions were made to the Company. Cash Available for Distribution We have not in the past paid cash distributions on our membership interests. We currently intend to retain all available funds and any future earnings for use in the operation and expansion of our business and do not anticipate paying any cash distributions in the foreseeable future. The terms of our current financing agreements preclude us, and any future financing agreements may preclude us, from paying any distributions. To the extent not prohibited by the terms of any financing agreement or applicable law, however, we may at some future date distribute available cash to our members. Restrictions on Transfer Our members generally are prohibited from transferring or encumbering our membership interests without the prior written consent of BREF HR Management or the holder of Class A Units. No transfer may be made unless certain general conditions are met, including that the transfer complies with applicable gaming regulations. Distributions Upon Liquidation We may be dissolved upon certain events, including at the election of the members. In the event of a dissolution, the cash proceeds from the liquidation, after payment of our liabilities, will be distributed to our members in accordance with their respective positive capital account balances as calculated under the LLC Agreement, subject to any necessary approvals from the Nevada Gaming Commission and/or the Nevada State Gaming Control Board. |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Quarterly Financial Information (unaudited) Quarterly financial information for the years ended December 31, 2015 and 2014 is summarized below: 2015 ($ in thousands) First Second Third Fourth Net revenues $ 48,085 $ 54,697 $ 45,982 $ 45,035 Operating (loss) income 1,414 (295 ) (1,230 ) 1,701 Loss before income taxes (27,110 ) (29,268 ) (31,929 ) (31,224 ) Net loss (27,110 ) (29,268 ) (31,929 ) (31,224 ) 2014 ($ in thousands) First Second Third Fourth Net revenues $ 49,113 $ 57,281 $ 50,178 $ 43,832 Operating income (loss) 1,612 3,951 (32 ) (1,874 ) Loss before income taxes (23,663 ) (20,756 ) (28,361 ) (30,053 ) Net loss (23,663 ) (20,756 ) (28,361 ) (30,053 ) |
Company Structure and Nature 19
Company Structure and Nature of Business (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The consolidated financial statements have been prepared on a going concern basis, which assumes continuity of operations and realization of assets and liabilities in the ordinary course of business. The consolidated financial statements do not include any adjustments that might result from the outcome of uncertainties, including the possibility that the Company loses some or substantially all of its assets to foreclosure as a result of these uncertainties. |
Significant Accounting Polici20
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. 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 consolidated financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates, and those differences could be material. Certain amounts reported in the prior period on the audited consolidated statements of operations and comprehensive loss have been combined to conform to the current presentation. Retail revenues and other revenues have been combined into entertainment, retail and other revenues, and retail expenses and other expenses have been combined into entertainment, retail and other expenses. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and in banks and interest-bearing deposits with maturities at the date of purchase of three months or less. Cash equivalents are carried at cost which approximates fair value. |
Restricted Cash | Restricted Cash We are obligated to maintain certain cash reserve funds for a variety of purposes as determined pursuant to the Amended Facility, including a requirement to deposit funds into a replacements and refurbishments reserve fund at amounts equal to three percent of the Hard Rock Hotel & Casino Las Vegas' gross revenues. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of casino accounts receivable. The Company issues credit in the form of “markers” to approved casino customers following investigations of creditworthiness. Business or economic conditions or other significant events could affect the collectability of such receivables. Substantially all accounts receivable are unsecured and are due primarily from casino and hotel patrons and convention functions. Non-performance by these parties would result in losses up to the recorded amount of the related receivables. Management does not anticipate significant non-performance and believes that they have adequately provided for uncollectible receivables. Accounts receivable, including casino and hotel receivables, are typically non-interest bearing and are initially recorded at cost. Accounts are written off when management deems them to be uncollectible. Recoveries of accounts previously written off are recorded when received. An estimated allowance for doubtful accounts is maintained to reduce the receivables to their carrying amount, which approximates fair value. Such allowances are estimated based on specific review of customer accounts as well as management's experience with collection trends in the casino industry and current economic and business conditions. |
Inventories | Inventories Inventories are stated at the lower of cost (determined using the first-in, first-out method), or market. |
Property and Equipment, Net | Gains or losses arising from dispositions are included in costs and expenses in the statements of operations. Costs of major improvements are capitalized, while costs of normal repairs and maintenance are charged to expense as incurred. Substantially all property and equipment is pledged as collateral for long-term debt at December 31, 2015 and 2014 . For assets to be disposed of, the Company recognizes the asset at the lower of carrying value or fair market value less costs of disposal, as estimated based on comparable asset sales, solicited offers, or a discounted cash flow model. We treat memorabilia as an indefinite-lived asset and therefore it is not depreciated. Property and Equipment, Net The Company evaluates its property and equipment and other long-lived assets for impairment based on its classification as held for sale or to be held and used. Several criteria must be met before an asset is classified as held for sale, including that management with the appropriate authority commits to a plan to sell the asset at a reasonable price in relation to its fair value and is actively seeking a buyer. For assets to be held and used (including projects under development), fixed assets are reviewed for impairment whenever indicators of impairment exist. If an indicator of impairment exists, the Company first groups its assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (the "asset group"). Secondly, the Company estimates the undiscounted future cash flows that are directly associated with and expected to arise from the completion, use and eventual disposition of such asset group. The Company estimates the undiscounted cash flows over the remaining useful life of the primary asset within the asset group. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, then an impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model. If an asset is still under development, future cash flows include remaining construction costs. Land improvements, buildings and improvements, equipment, furniture and fixtures, and memorabilia were recorded at cost, except for those for which a fair value analysis was prepared as of March 1, 2011. There was no significant amounts of interest capitalized for any periods presented. |
Finite-lived Intangible Assets | Finite-lived Intangible Assets The Company reviews the carrying value of its intangible assets that have a definite life for possible impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The Company then compares the estimated future cash flows of the asset, on an undiscounted basis, 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 do not exceed the carrying value, then an impairment is recorded based on the fair value of the asset, typically measured using a discounted cash flow model. All recognized impairment losses, whether for assets held for sale or assets to be held and used, are recorded as operating expenses. Inherent in reviewing the carrying amounts of the above assets is the use of various estimates. First, the Company must determine the usage of the asset. Impairment of an asset is more likely to be recognized where and to the extent management of the Company decides that such asset may be disposed of or sold. Assets must be tested at the lowest level for which identifiable cash flows exist. This testing means that some assets must be grouped and management of the Company exercises some judgment in grouping those assets. Future cash flow estimates are, by their nature, subjective and actual results may differ materially from estimates. If ongoing estimates of future cash flows are not met, the Company may have to record additional impairment charges in future accounting periods. Estimates of cash flows for the Company are based on the current regulatory, social and economic environment where operations are or were conducted as well as recent operating information and budgets for the Company’s business. 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 Hard Rock Hotel & Casino Las Vegas. Finite-lived Intangible Assets Intangible assets that have a definite life, such as in-place contracts, trade names, customer relationships, sponsorship agreements, market leases and other amortizing intangible assets are ratably amortized on a straight-line basis over the estimated useful life, which approximates pattern of use, and ranges from one to six years. Player Relationships are amortized on an accelerated basis consistent with the expected timing of the Company’s realization of the economic benefits of such relationships. |
Indefinite-lived Intangible Assets | Indefinite-lived Intangible Assets The Company performs an annual impairment test for indefinite-lived intangible assets at December 31 of each year, or more frequently if impairment indicators exist. The impairment test consists of comparing the fair value of the asset with its carrying amount, and, if the carrying amount exceeds its fair value, an impairment loss would be recognized for the carrying amount in excess of its implied fair value. The Hard Rock licensing intangible asset is tested for impairment using the relief from royalty method based on the estimated present value of future revenues and an assumed royalty rate. Future Trademark licensing intangible asset is tested for impairment using the estimated discounted cash flows of the future royalty income streams. |
Allowance for Uncollectible Receivables | Allowance for Uncollectible Receivables Accounts receivable, including casino and hotel receivables, are typically non-interest bearing and are initially recorded at cost. Accounts are written off when management deems them to be uncollectible. Recoveries of accounts previously written off are recorded when received. An estimated allowance for doubtful accounts is maintained to reduce our receivables to their carrying amount, which approximates fair value. The allowance is estimated based on specific review of customer accounts as well as our management’s experience with collection trends in the casino industry and current economic and business conditions. Our management's estimates consider, among other factors, the age of the receivables, the type or source of the receivables, and the results of collection efforts to date, especially with regard to significant accounts. Change in customer liquidity or financial condition could affect the collectability of that account, resulting in adjustment to the provision for bad debts, with a corresponding impact to our results of operations. |
Advertising Expenses | Advertising Expenses The costs of all advertising campaigns and promotions are expensed as incurred. |
Income Taxes | Income Taxes The Company is treated as a limited liability company and its default classification for tax purposes is that of a disregarded entity not subject to federal income taxes. Accordingly, the Company makes no provision for federal income taxes in its financial statements. The Company’s federal taxable income or loss, which is different than financial statement income or loss, is reportable by the member. The Company’s members are responsible for reporting their allocable share of the Company’s income, gains, deductions, losses and credits on their individual income tax returns. |
Revenues | Revenues Casino revenues are derived from patrons wagering on table games, slot machines and poker. Table games generally include Blackjack or Twenty One, Craps, Baccarat and Roulette. Casino revenue is defined as the win from gaming activities, computed as the difference between gaming wins and losses, not the total amounts wagered. Casino revenue is recognized at the end of each gaming day. Lodging revenues are derived from rooms and suites rented to guests and include related revenues for incidental services. Room revenue is recognized at the time the room or service is provided to the guest. Food and beverage revenues are derived from food and beverage sales in the food outlets, including restaurants, room service, banquets and nightclub. Food and beverage revenue is recognized at the time the food and/or beverage is provided to the guest. Entertainment, retail and other revenues include retail sales, entertainment revenue, spa fees, fees for licensing the “Hard Rock” brand and other miscellaneous income. Revenues are recognized at the point in time the retail sale occurs, when entertainment and spa services are provided to the guest, or when licensing fees become due and payable. Revenues are recognized net of certain sales incentives, including points redeemed for cash through customer loyalty programs, such as the player's club loyalty program, amounts of reimbursed airfare and marker discounts. Complimentaries Revenues include the retail value of rooms, food and beverage, and other complimentaries provided to casino customers without charge, which are then subtracted to arrive at net revenues. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities All derivative instruments are recorded at fair value. The accounting for changes in the fair value of derivative instruments depends on the intended use of the derivative instruments and the resulting designation. Derivative instruments used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivative instruments used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For derivative instruments designated as cash flow hedges, the effective portion of changes in the fair value of the derivative instrument is initially reported in other comprehensive income (outside of earnings) and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative instrument is recognized directly in earnings. The effectiveness of each hedging relationship is assessed under the hypothetical derivative method, whereby the cumulative change in fair value of the actual derivative instrument is compared to the cumulative change in fair value of a hypothetical derivative instrument having terms that exactly match the critical terms of the hedged transaction. For derivative instruments that do not qualify for hedge accounting or when hedge accounting is discontinued, the changes in fair value of the derivative instrument are recognized directly in earnings. The objective in using derivative instruments is to add stability to our interest expense and to manage exposure to interest rate movements or other identified risks. Interest rate caps are used as part of a cash flow hedging strategy. There were no outstanding derivatives at December 31, 2015 and 2014. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is a market-based measurement, not an entity-specific measurement. Therefore, fair value measurement is determined based on assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy is used to distinguish between market participant assumptions based on market data obtained from sources independent of the reporting entity as follows: Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. Level 2: Inputs, other than quoted prices in active markets that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Debt. To determine the fair value of our debt the Company utilizes a discounted cash flow model. The discount rate is determined utilizing historical market-based equity returns which are adjusted, as necessary, for entity specific factors. The Company has determined that our debt valuations are classified in Level 3 of the fair value hierarchy. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers , (Topic 606) , which supersedes most of the current revenue recognition requirements ("ASU No. 2014-09"). The core principle of this guidance is that an entity is required to recognize revenue to depict the transfer of promised 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. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. Entities must adopt the new guidance using one of two retrospective application methods. For public business entities, certain not-for-profit entities and certain employee benefit plans, the guidance in ASU No. 2014-09 should be applied to annual reporting periods beginning after December 15, 2017, including interim reporting periods within those reporting periods. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company will adopt this standard effective January 1, 2018. We are currently assessing the impact the adoption of this standard will have on our disclosures and results of operations. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern, (Subtopic 205-40) , which requires an entity's management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The entity must also disclose whether or not the substantial doubt is or is not alleviated as a result of consideration of management's plans. The guidance in ASU No. 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim period thereafter. Early application is permitted. The Company will adopt this standard effective January 1, 2016. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest , (Subtopic 835-30), ("ASU No. 2015-03"), which is intended to simplify the presentation of debt issuance costs. The guidance in ASU No. 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the guidance in ASU No. 2015-03. For public business entities, the guidance in ASU No. 2015-03 is effective for financial statements issued for fiscal years beginning after December 31, 2015, and interim periods within those fiscal years. Early adoption of the guidance is permitted for financial statements that have not been previously issued. The adoption of this will result in a reclassification between assets and liabilities but will have no effect on our income statement. In July 2015, the FASB issued ASU No. 2015-11, Inventory, (Topic 330), ( "ASU No. 2015-11"), which provides that inventory measured using any method other than last-in, first-out (LIFO) or the retail inventory method (for example, inventory measured using first-in, first-out (FIFO) or average cost) should be measured at the lower of cost and net realizable value. For public business entities, the guidance in ASU No. 2015-11 is effective for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The guidance in ASU No. 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Because the Company 's inventories are stated at the lower of cost (determined using the first-in, first-out method) or market, we do not expect the adoption of this standard to have a material effect on our financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, (Topic 842) , ("ASU No. 2016-02), which provides that a lessee should recognize the assets and liabilities that arise from leases. The guidance in ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, for public business entities, certain not-for-profit entities and certain employee benefit plans. Early adoption of this guidance is permitted for all entities. The Company will adopt this standard effective January 1, 2019. The Company is beginning to assess its impact on its financial statements. |
Significant Accounting Polici21
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Restricted Cash and Cash Equivalents | Restricted cash consists of the following: ($ in thousands) December 31, 2015 December 31, 2014 Current Tax reserves $ 2,707 $ 3,095 Insurance reserves 1,407 893 Other reserves 363 363 Workers' compensation reserves 555 517 Total current restricted cash 5,032 4,868 Long-term Working capital reserves 15,026 15,048 Replacement reserves 3,816 7,698 Total long-term restricted cash 18,842 22,746 Total restricted cash $ 23,874 $ 27,614 |
Property, Plant and Equipment, Schedule Of Estimated Useful Lives | Depreciation is computed using the straight-line method over the property and equipment's estimated useful lives are as follows: Building and Building improvements 15-40 years Equipment, furniture and fixtures 3-10 years |
Schedule of Complimentaries Value and Related Expenses | Revenues include the retail value of rooms, food and beverage, and other complimentaries provided to casino customers without charge, which are then subtracted to arrive at net revenues. Estimated Retail Value of Casino Complimentaries For the year ended December 31, ($ in thousands) 2015 2014 2013 Food and beverage $ 8,101 $ 8,245 $ 9,729 Lodging 8,822 8,835 8,414 Other 1,471 1,028 1,559 $ 18,394 $ 18,108 $ 19,702 The allocated costs of providing such complimentaries have been classified as casino operating expenses as follows: Estimated Cost of Provided Casino Complimentaries For the year ended December 31, ($ in thousands) 2015 2014 2013 Food and beverage $ 5,553 $ 5,703 $ 5,102 Lodging 3,288 3,410 3,216 Other 968 746 1,045 $ 9,809 $ 9,859 $ 9,363 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Components of Accounts Receivable | Components of accounts receivable, net consists of the following: As of December 31, ($ in thousands) 2015 2014 Casino $ 4,628 $ 5,624 Lodging 4,154 3,496 Other 3,746 3,083 12,528 12,203 Less: allowance for doubtful accounts and discount reserve (1,574 ) (1,247 ) Total accounts receivable, net $ 10,954 $ 10,956 |
Activity in Allowance for Doubtful Accounts | Activity in the allowance for doubtful accounts was as follows: ($ in thousands) Balance at December 31, 2012 $ 959 Bad debt expense (recoveries) 77 Write offs, net of collections (357 ) Balance at December 31, 2013 679 Bad debt expense (recoveries) 737 Write offs, net of collections (169 ) Balance at December 31, 2014 1,247 Bad debt expense (recoveries) 2,245 Write offs, net of collections (1,918 ) Balance at December 31, 2015 $ 1,574 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: As of December 31, ($ in thousands) 2015 2014 Restaurants and bars $ 2,297 $ 2,495 Retail merchandise 761 963 Other inventory and operating supplies 133 120 Total inventories $ 3,191 $ 3,578 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net consists of the following: As of December 31, ($ in thousands) 2015 2014 Land $ 115,600 $ 115,600 Buildings and building improvements 347,424 343,375 Furniture, fixtures and equipment 88,698 83,094 Memorabilia 7,100 7,046 558,822 549,115 Less: accumulated depreciation (119,008 ) (92,751 ) Construction in progress 1,475 565 Total property and equipment, net $ 441,289 $ 456,929 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net consists of the following: December 31, 2015 ($ in thousands) Gross Carrying Amount Accumulated Impairment Losses Accumulated Amortization Net Carrying Amount Remaining life (years) Non-amortizing intangible assets Hard Rock licensing $ 55,000 $ (15,000 ) $ — $ 40,000 Indefinite Future Trademark licensing 7,000 7,000 Indefinite 62,000 (15,000 ) — 47,000 Amortizing intangible assets In-place contracts 29,000 (6,175 ) (12,492 ) 10,333 6 Market leases 1,736 — (1,278 ) 458 0-6 Player Relationships 10,000 — (5,603 ) 4,397 6 Other 2,200 (88 ) (1,389 ) 723 6 42,936 (6,263 ) (20,762 ) 15,911 Total intangible assets, net $ 104,936 $ (21,263 ) $ (20,762 ) $ 62,911 December 31, 2014 ($ in thousands) Gross Carrying Amount Accumulated Impairment Losses Accumulated Amortization Net Carrying Amount Non-amortizing intangible assets Hard Rock licensing $ 55,000 $ (15,000 ) $ — $ 40,000 Future Trademark licensing 7,000 — — 7,000 62,000 (15,000 ) — 47,000 Amortizing intangible assets In-place contracts 29,000 (6,175 ) (10,492 ) 12,333 Market leases 1,736 — (1,137 ) 599 Player Relationships 10,000 — (4,752 ) 5,248 Other 2,200 (88 ) (843 ) 1,269 42,936 (6,263 ) (17,224 ) 19,449 Total intangible assets, net $ 104,936 $ (21,263 ) $ (17,224 ) $ 66,449 |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net consists of the following: December 31, 2015 ($ in thousands) Gross Carrying Amount Accumulated Impairment Losses Accumulated Amortization Net Carrying Amount Remaining life (years) Non-amortizing intangible assets Hard Rock licensing $ 55,000 $ (15,000 ) $ — $ 40,000 Indefinite Future Trademark licensing 7,000 7,000 Indefinite 62,000 (15,000 ) — 47,000 Amortizing intangible assets In-place contracts 29,000 (6,175 ) (12,492 ) 10,333 6 Market leases 1,736 — (1,278 ) 458 0-6 Player Relationships 10,000 — (5,603 ) 4,397 6 Other 2,200 (88 ) (1,389 ) 723 6 42,936 (6,263 ) (20,762 ) 15,911 Total intangible assets, net $ 104,936 $ (21,263 ) $ (20,762 ) $ 62,911 December 31, 2014 ($ in thousands) Gross Carrying Amount Accumulated Impairment Losses Accumulated Amortization Net Carrying Amount Non-amortizing intangible assets Hard Rock licensing $ 55,000 $ (15,000 ) $ — $ 40,000 Future Trademark licensing 7,000 — — 7,000 62,000 (15,000 ) — 47,000 Amortizing intangible assets In-place contracts 29,000 (6,175 ) (10,492 ) 12,333 Market leases 1,736 — (1,137 ) 599 Player Relationships 10,000 — (4,752 ) 5,248 Other 2,200 (88 ) (843 ) 1,269 42,936 (6,263 ) (17,224 ) 19,449 Total intangible assets, net $ 104,936 $ (21,263 ) $ (17,224 ) $ 66,449 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accrued expenses consist of the following: As of December 31, ($ in thousands) 2015 2014 Current Deferred income $ 48 $ 184 Capital leases obligations 55 177 Advance room, convention and customer deposits 5,238 5,947 Accrued salaries, payroll taxes and other employee benefits 1,514 1,873 Accrued miscellaneous taxes 1,654 1,431 Reserve for general liability and accrued legal claims 5,091 3,383 Other accrued liabilities 2,916 3,172 Total current accrued expenses 16,516 16,167 Long term Capital leases obligations 172 — Total long term accrued expenses 172 — Total accrued expenses $ 16,688 $ 16,167 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table presents debt outstanding as of December 31, 2015 and 2014 : ($ in thousands) Face value Book value Face value Book value Project name/lender 2015 2015 2014 2014 Amended facility - Note A/Vegas HR Private Limited $ 619,065 $ 574,975 $ 595,658 $ 536,993 Amended facility - Note B/Vegas HR Private Limited 327,290 236,423 327,290 206,369 Second Mortgage - Brookfield Financial 30,000 21,283 30,000 18,638 Total debt 976,355 832,681 952,948 762,000 Current portion of long-term debt (946,355 ) (811,398 ) (922,948 ) (743,362 ) Total long-term debt $ 30,000 $ 21,283 $ 30,000 $ 18,638 |
Schedule of Amortization of Debt Discounts | The estimated annual amortization of the debt discounts under the effective interest method assuming estimated future cash flow payments of the Amended Facility and the Second Mortgage (assuming continued forbearance) for each of the four succeeding years is as follows: ($ in thousands) Amortization - Amended Facility Amortization - Second Mortgage 2016 $ 57,483 $ 3,439 2017 66,272 4,445 2018 11,322 833 2019 — — Total $ 135,077 $ 8,717 |
Quarterly Financial Informati28
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarterly financial information for the years ended December 31, 2015 and 2014 is summarized below: 2015 ($ in thousands) First Second Third Fourth Net revenues $ 48,085 $ 54,697 $ 45,982 $ 45,035 Operating (loss) income 1,414 (295 ) (1,230 ) 1,701 Loss before income taxes (27,110 ) (29,268 ) (31,929 ) (31,224 ) Net loss (27,110 ) (29,268 ) (31,929 ) (31,224 ) 2014 ($ in thousands) First Second Third Fourth Net revenues $ 49,113 $ 57,281 $ 50,178 $ 43,832 Operating income (loss) 1,612 3,951 (32 ) (1,874 ) Loss before income taxes (23,663 ) (20,756 ) (28,361 ) (30,053 ) Net loss (23,663 ) (20,756 ) (28,361 ) (30,053 ) |
Company Structure and Nature 29
Company Structure and Nature of Business (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2014 | Dec. 31, 2012 | Mar. 02, 2011 | |
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt, face value | $ 976,355 | $ 952,948 | $ 976,355 | $ 952,948 | ||||||||||
Net loss | (31,224) | $ (31,929) | $ (29,268) | $ (27,110) | (30,053) | $ (28,361) | $ (20,756) | $ (23,663) | (119,531) | (102,833) | $ (105,539) | |||
Net members' deficit | (422,915) | (303,384) | (422,915) | (303,384) | $ (200,551) | $ (95,012) | ||||||||
Outstanding interest | 24,295 | 16,536 | 24,295 | 16,536 | ||||||||||
Amended facility with PIK | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Outstanding interest | 83,700 | 60,300 | 83,700 | 60,300 | $ 44,300 | |||||||||
Brookfield Financial | Second Mortgage | Mortgages | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt, face value | $ 30,000 | $ 30,000 | $ 30,000 | $ 30,000 | $ 30,000 |
Significant Accounting Polici30
Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Reserve fund percentage | 300.00% | |
Current restricted cash | $ 5,032 | $ 4,868 |
Noncurrent restricted cash | 18,842 | 22,746 |
Restricted cash | 23,874 | 27,614 |
Tax reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | 2,707 | 3,095 |
Insurance reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | 1,407 | 893 |
Other reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | 363 | 363 |
Workers' compensation reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | 555 | 517 |
Working capital reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Noncurrent restricted cash | 15,026 | 15,048 |
Replacement reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Noncurrent restricted cash | $ 3,816 | $ 7,698 |
Significant Accounting Polici31
Significant Accounting Policies - Property, Plant and Equipment and Intangibles (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of finite-lived intangible assets | 1 year |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of finite-lived intangible assets | 6 years |
Building and building improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 15 years |
Building and building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 40 years |
Equipment, furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 3 years |
Equipment, furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment useful lives | 10 years |
Significant Accounting Polici32
Significant Accounting Policies - Advertising Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 6 | $ 6.6 | $ 6.5 |
Significant Accounting Polici33
Significant Accounting Policies - Complimentaries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Operating Expenses for Complimentaries [Line Items] | |||
Retail Value of Casino Complimentaries | $ 18,394 | $ 18,108 | $ 19,702 |
Estimated Cost of Provided Casino Complimentaries | 9,809 | 9,859 | 9,363 |
Food and beverage | |||
Schedule of Operating Expenses for Complimentaries [Line Items] | |||
Retail Value of Casino Complimentaries | 8,101 | 8,245 | 9,729 |
Estimated Cost of Provided Casino Complimentaries | 5,553 | 5,703 | 5,102 |
Lodging | |||
Schedule of Operating Expenses for Complimentaries [Line Items] | |||
Retail Value of Casino Complimentaries | 8,822 | 8,835 | 8,414 |
Estimated Cost of Provided Casino Complimentaries | 3,288 | 3,410 | 3,216 |
Other | |||
Schedule of Operating Expenses for Complimentaries [Line Items] | |||
Retail Value of Casino Complimentaries | 1,471 | 1,028 | 1,559 |
Estimated Cost of Provided Casino Complimentaries | $ 968 | $ 746 | $ 1,045 |
Significant Accounting Polici34
Significant Accounting Policies - Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Long-term debt | $ 832,681 | $ 762,000 |
Level 3 of the fair value hierarchy | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Estimated fair value of debt | $ 550,000 | $ 610,000 |
Accounts Receivable, Net - Comp
Accounts Receivable, Net - Components of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts Receivable, Net, Current [Abstract] | ||||
Accounts receivable, gross | $ 12,528 | $ 12,203 | ||
Less: allowance for doubtful accounts | (1,574) | (1,247) | $ (679) | $ (959) |
Total accounts receivable, net | 10,954 | 10,956 | ||
Casino | ||||
Accounts Receivable, Net, Current [Abstract] | ||||
Accounts receivable, gross | 4,628 | 5,624 | ||
Hotel | ||||
Accounts Receivable, Net, Current [Abstract] | ||||
Accounts receivable, gross | 4,154 | 3,496 | ||
Other | ||||
Accounts Receivable, Net, Current [Abstract] | ||||
Accounts receivable, gross | $ 3,746 | $ 3,083 |
Accounts Receivable, Net - Acti
Accounts Receivable, Net - Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivables [Abstract] | |||
Beginning balance | $ 1,247 | $ 679 | $ 959 |
Additions - bad debt expense | 2,245 | 737 | 77 |
Deductions - write off net of collections | (1,918) | (169) | (357) |
Ending balance | $ 1,574 | $ 1,247 | $ 679 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Inventories | $ 3,191 | $ 3,578 |
Restaurants and bars | ||
Inventory [Line Items] | ||
Inventories | 2,297 | 2,495 |
Retail merchandise | ||
Inventory [Line Items] | ||
Inventories | 761 | 963 |
Other inventory and operating supplies | ||
Inventory [Line Items] | ||
Inventories | $ 133 | $ 120 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 15, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | $ 558,822 | $ 549,115 | ||
Less: accumulated depreciation | (119,008) | (92,751) | ||
Construction in progress | 1,475 | 565 | ||
Total property and equipment, net | 441,289 | 456,929 | ||
Depreciation | 26,673 | 25,931 | $ 25,263 | |
Undeveloped Land | ||||
Property, Plant and Equipment [Line Items] | ||||
Undeveloped land | $ 4,500 | |||
Land | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 115,600 | 115,600 | ||
Building and building improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 347,424 | 343,375 | ||
Furniture, fixtures and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 88,698 | 83,094 | ||
Memorabilia | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | $ 7,100 | $ 7,046 |
Intangible Assets - Non-amortiz
Intangible Assets - Non-amortizing Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 62,000 | $ 62,000 |
Accumulated Impairment Losses | (15,000) | (15,000) |
Net Carrying Amount | 47,000 | 47,000 |
Trademark licensing | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 55,000 | 55,000 |
Accumulated Impairment Losses | (15,000) | (15,000) |
Net Carrying Amount | 40,000 | 40,000 |
Future Trademark licensing | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,000 | 7,000 |
Accumulated Impairment Losses | 0 | |
Net Carrying Amount | $ 7,000 | $ 7,000 |
Intangible Assets - Amortizing
Intangible Assets - Amortizing Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 42,936 | $ 42,936 |
Accumulated Impairment Losses | (6,263) | (6,263) |
Accumulated Amortization | (20,762) | (17,224) |
Net Carrying Amount | 15,911 | 19,449 |
Total intangible assets, net | 62,911 | 66,449 |
In-place contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 29,000 | 29,000 |
Accumulated Impairment Losses | (6,175) | (6,175) |
Accumulated Amortization | (12,492) | (10,492) |
Net Carrying Amount | $ 10,333 | 12,333 |
Remaining life (years) | 6 years | |
Market leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,736 | 1,736 |
Accumulated Impairment Losses | 0 | 0 |
Accumulated Amortization | (1,278) | (1,137) |
Net Carrying Amount | $ 458 | 599 |
Market leases | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining life (years) | 0 years | |
Market leases | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining life (years) | 6 years | |
Player Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 10,000 | 10,000 |
Accumulated Impairment Losses | 0 | 0 |
Accumulated Amortization | (5,603) | (4,752) |
Net Carrying Amount | $ 4,397 | 5,248 |
Remaining life (years) | 6 years | |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,200 | 2,200 |
Accumulated Impairment Losses | (88) | (88) |
Accumulated Amortization | (1,389) | (843) |
Net Carrying Amount | $ 723 | $ 1,269 |
Remaining life (years) | 6 years |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross Carrying Amount | $ 104,936 | $ 104,936 |
Accumulated Impairment Losses | (21,263) | (21,263) |
Accumulated Amortization | (20,762) | (17,224) |
Total intangible assets, net | $ 62,911 | $ 66,449 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Finite And Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 3,538 | $ 4,005 | $ 5,653 |
Estimated aggregate amortization expense, 2016 | 3,100 | ||
Estimated aggregate amortization expense, 2017 | 3,100 | ||
Estimated aggregate amortization expense, 2018 | 3,100 | ||
Estimated aggregate amortization expense, 2019 | 3,100 | ||
Estimated aggregate amortization expense, 2020 | $ 3,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current | ||
Deferred income | $ 48 | $ 184 |
Capital leases obligations | 55 | 177 |
Advance room, convention and customer deposits | 5,238 | 5,947 |
Accrued salaries, payroll taxes and other employee benefits | 1,514 | 1,873 |
Accrued miscellaneous taxes | 1,654 | 1,431 |
Reserve for general liability and accrued legal claims | 5,091 | 3,383 |
Other accrued liabilities | 2,916 | 3,172 |
Total current accrued expenses | 16,516 | 16,167 |
Long term | ||
Capital leases obligations | 172 | 0 |
Total long term accrued expenses | 172 | 0 |
Total accrued expenses | $ 16,688 | $ 16,167 |
Agreements with Related Parti44
Agreements with Related Parties (Details) - USD ($) | Jun. 15, 2012 | Dec. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ||||||
Related party payables | $ 150,000 | $ 30,000 | ||||
Loss on joint venture investment | (93,000) | (42,000) | $ (49,000) | |||
WG-Harmon | ||||||
Related Party Transaction [Line Items] | ||||||
Management fee expense | 2,100,000 | 3,600,000 | 1,800,000 | |||
Related party payables | $ 100,000 | 0 | ||||
Monthly base fee for management expense if construction services are no longer provided | $ 150,000 | |||||
CDO Restaurant Associates, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Initial construction and preopening budget, contribution, percentage | 80.00% | |||||
Initial construction and preopening budget, contribution | $ 2,100,000 | |||||
Rate on related party loan receivable | 8.00% | |||||
Preferred return over capital contributions, percentage | 8.00% | |||||
Equity method investment, ownership percentage | 50.00% | |||||
Amount distributed to members during period | $ 0 | 0 | ||||
Operating lease, term of contract | 10 years | |||||
Operating lease, renewal term | 5 years | |||||
Rental income from related party | $ 255,000 | 251,000 | 296,000 | |||
CDO Restaurant Associates, LLC | Pre-opening Costs in Excess of Budgeted Amounts | ||||||
Related Party Transaction [Line Items] | ||||||
Loan to related party | $ 100,000 | |||||
CDO Restaurant Associates, LLC | Final Construction Costs in Excess of Budgeted Amounts | ||||||
Related Party Transaction [Line Items] | ||||||
Loan to related party | $ 248,000 | |||||
Other assets | CDO Restaurant Associates, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Equity method investment value | $ 900,000 | 1,200,000 | ||||
Bank of America, N.T. & S.A. | CDO Restaurant Associates, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Basis spread on variable rate | 4.00% | |||||
Equity In Income Of Joint Venture | CDO Restaurant Associates, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Loss on joint venture investment | $ (93,000) | (42,000) | $ 49,000 | |||
Mortgages | ||||||
Related Party Transaction [Line Items] | ||||||
Accrued interest on debt | $ 7,800,000 | $ 6,000,000 |
Debt - Debt Outstanding (Detail
Debt - Debt Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 02, 2011 |
Debt Instrument [Line Items] | |||
Face value | $ 976,355 | $ 952,948 | |
Current portion of long-term debt, Face value | (946,355) | (922,948) | |
Total long-term debt, Face value | 30,000 | 30,000 | |
Book value | 832,681 | 762,000 | |
Current portion of long-term debt, Book value | (811,398) | (743,362) | |
Total long-term debt, Book value | 21,283 | 18,638 | |
Amended facility with PIK | Amended Facility Note A | |||
Debt Instrument [Line Items] | |||
Face value | 619,065 | 595,658 | |
Book value | 574,975 | 536,993 | |
Amended facility without PIK | Amended Facility Note B | |||
Debt Instrument [Line Items] | |||
Face value | 327,290 | 327,290 | |
Book value | 236,423 | 206,369 | |
Mortgages | Second Mortgage | Brookfield Financial | |||
Debt Instrument [Line Items] | |||
Face value | 30,000 | 30,000 | $ 30,000 |
Book value | $ 21,283 | $ 18,638 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2014 | Mar. 02, 2011 | |
Debt Instrument [Line Items] | ||||
Outstanding interest | $ 24,295 | $ 16,536 | ||
Long-term debt, face value | 976,355 | 952,948 | ||
Amended facility with PIK | ||||
Debt Instrument [Line Items] | ||||
Outstanding interest | $ 83,700 | 60,300 | $ 44,300 | |
Brookfield Financial | Mortgages | ||||
Debt Instrument [Line Items] | ||||
Interest rate at period end | 15.00% | |||
Amended Facility Note A and B | Loans Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding interest | $ 114,300 | |||
Interest rate at period end | 4.00% | |||
Amended Facility Note A and B | LIBOR | Loans Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 2.50% | |||
Variable rate basis floor | 1.50% | |||
Amended Facility Note A and B | Scenario One | Loans Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Supplemental interest rate, minimum | 6.50% | |||
Amended Facility Note A and B | Scenario Two | LIBOR | Loans Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Supplemental interest rate, minimum | 4.00% | |||
Second Mortgage | Brookfield Financial | Mortgages | ||||
Debt Instrument [Line Items] | ||||
Contractually owed interest | $ 21,200 | |||
Long-term debt, face value | $ 30,000 | $ 30,000 | $ 30,000 |
Debt - Debt Discount Amortizati
Debt - Debt Discount Amortization (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Amended facility with PIK | Vegas HR Private Limited | |
Long-term Debt, Estimated Annual Amortization [Abstract] | |
2,016 | $ 57,483 |
2,017 | 66,272 |
2,018 | 11,322 |
2,019 | 0 |
Total | 135,077 |
Mortgages | Second Mortgage | Brookfield Financial | |
Long-term Debt, Estimated Annual Amortization [Abstract] | |
2,016 | 3,439 |
2,017 | 4,445 |
2,018 | 833 |
2,019 | 0 |
Total | $ 8,717 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingencies accrued | $ 4.8 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation Related Costs [Abstract] | ||
Minimum age of eligible employee for profit sharing plan | 21 years | |
Minimum annual contributions per employee, percent | 1.00% | |
Maximum annual contributions per employee, percent | 50.00% | |
Matching contributions for 401k | $ 0 | $ 0 |
Membership Interests (Details)
Membership Interests (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)class | Dec. 31, 2014USD ($) | |
Equity [Abstract] | ||
Number of classes of membership interests | class | 2 | |
Members' capital contributions | $ | $ 0 | $ 0 |
Quarterly Financial Informati51
Quarterly Financial Information (unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $ 45,035 | $ 45,982 | $ 54,697 | $ 48,085 | $ 43,832 | $ 50,178 | $ 57,281 | $ 49,113 | $ 193,799 | $ 200,404 | $ 194,613 |
Operating (loss) income | 1,701 | (1,230) | (295) | 1,414 | (1,874) | (32) | 3,951 | 1,612 | 1,590 | 3,657 | (7,197) |
Loss before Income taxes | (31,224) | (31,929) | (29,268) | (27,110) | (30,053) | (28,361) | (20,756) | (23,663) | |||
Net loss | $ (31,224) | $ (31,929) | $ (29,268) | $ (27,110) | $ (30,053) | $ (28,361) | $ (20,756) | $ (23,663) | $ (119,531) | $ (102,833) | $ (105,539) |