Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Entity Registrant Name | RED ROCK RESORTS, INC. | |
Entity Central Index Key | 1,653,653 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Class A common stock | ||
Entity Common Stock, Shares Outstanding (in shares) | 69,626,748 | |
Class B common stock | ||
Entity Common Stock, Shares Outstanding (in shares) | 46,884,413 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 108,418 | $ 231,465 |
Restricted cash | 3,502 | 3,279 |
Receivables, net | 43,987 | 48,730 |
Income tax receivable | 80 | 256 |
Inventories | 12,730 | 12,572 |
Prepaid gaming tax | 25,769 | 21,597 |
Prepaid expenses and other current assets | 17,664 | 19,373 |
Assets held for sale | 0 | 4,290 |
Total current assets | 212,150 | 341,562 |
Property and equipment, net of accumulated depreciation of $767,071 and $689,856 at June 30, 2018 and December 31, 2017, respectively | 2,762,018 | 2,542,111 |
Goodwill | 195,676 | 195,676 |
Intangible assets, net of accumulated amortization of $43,511 and $105,370 at June 30, 2018 and December 31, 2017, respectively | 121,826 | 128,000 |
Land held for development | 177,182 | 177,182 |
Investments in joint ventures | 9,528 | 10,133 |
Native American development costs | 17,572 | 17,270 |
Deferred tax asset, net | 109,924 | 132,731 |
Other assets, net | 119,205 | 75,456 |
Total assets | 3,725,081 | 3,620,121 |
Current liabilities: | ||
Accounts payable | 29,758 | 21,626 |
Accrued interest payable | 7,690 | 10,611 |
Other accrued liabilities | 242,279 | 182,903 |
Current portion of payable pursuant to tax receivable agreement | 0 | 17 |
Current portion of long-term debt | 34,864 | 30,094 |
Total current liabilities | 314,591 | 245,251 |
Long-term debt, less current portion | 2,575,789 | 2,587,728 |
Deficit investment in joint venture | 2,198 | 2,235 |
Other long-term liabilities | 10,069 | 11,289 |
Payable pursuant to tax receivable agreement, net of current portion | 25,211 | 141,906 |
Total liabilities | 2,927,858 | 2,988,409 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.01 per share, 100,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Additional paid-in capital | 358,069 | 349,430 |
Retained earnings | 146,165 | 26,138 |
Accumulated other comprehensive income | 1,852 | 2,473 |
Total Red Rock Resorts, Inc. stockholders’ equity | 506,783 | 378,731 |
Noncontrolling interest | 290,440 | 252,981 |
Total stockholders’ equity | 797,223 | 631,712 |
Total liabilities and stockholders’ equity | 3,725,081 | 3,620,121 |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock | 696 | 689 |
Class B common stock | ||
Stockholders’ equity: | ||
Common stock | $ 1 | $ 1 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accumulated depreciation | $ 767,071 | $ 689,856 |
Accumulated amortization | $ 43,511 | $ 105,370 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Class A common stock | ||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 69,626,748 | 68,897,563 |
Common stock, shares outstanding (in shares) | 69,626,748 | 68,897,563 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Class B common stock | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 46,884,413 | 47,264,413 |
Common stock, shares outstanding (in shares) | 46,884,413 | 47,264,413 |
Common stock, par value (in usd per share) | $ 0.00001 | $ 0.00001 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating revenues: | ||||
Casino | $ 232,756 | $ 219,136 | $ 469,003 | $ 442,672 |
Food and beverage | 94,632 | 91,596 | 185,560 | 190,142 |
Room | 42,719 | 45,194 | 89,349 | 95,954 |
Other | 24,917 | 23,541 | 47,473 | 46,210 |
Management fees | 21,164 | 30,676 | 45,842 | 60,903 |
Net revenues | 416,188 | 410,143 | 837,227 | 835,881 |
Operating costs and expenses: | ||||
Casino | 80,396 | 77,669 | 159,354 | 154,128 |
Food and beverage | 85,114 | 82,819 | 165,223 | 167,644 |
Room | 19,431 | 20,653 | 39,531 | 42,415 |
Other | 12,109 | 10,214 | 20,895 | 19,245 |
Selling, general and administrative | 98,071 | 95,214 | 193,180 | 189,875 |
Depreciation and amortization | 45,992 | 46,807 | 89,156 | 92,060 |
Write-downs and other charges, net | 10,786 | 9,638 | 14,631 | 10,692 |
Tax receivable agreement liability adjustment | (73,502) | (444) | (90,375) | (444) |
Related party lease termination | 0 | 98,393 | 0 | 98,393 |
Total operating costs and expenses | 278,397 | 440,963 | 591,595 | 774,008 |
Operating income (loss) | 137,791 | (30,820) | 245,632 | 61,873 |
Earnings from joint ventures | 499 | 420 | 1,107 | 835 |
Operating income (loss) and earnings from joint ventures | 138,290 | (30,400) | 246,739 | 62,708 |
Other (expense) income: | ||||
Interest expense, net | (31,598) | (33,853) | (62,709) | (68,797) |
Loss on extinguishment/modification of debt, net | 0 | (975) | 0 | (2,994) |
Change in fair value of derivative instruments | 7,321 | 3,330 | 23,124 | 3,369 |
Other | (66) | (86) | (221) | (172) |
Total other expense | (24,343) | (31,584) | (39,806) | (68,594) |
Income (loss) before income tax | 113,947 | (61,984) | 206,933 | (5,886) |
(Provision) benefit for income tax | (14,845) | 11,813 | (25,701) | 1,134 |
Net income (loss) | 99,102 | (50,171) | 181,232 | (4,752) |
Less: net income (loss) attributable to noncontrolling interests | 16,367 | (24,437) | 47,317 | 1,082 |
Net income (loss) attributable to Red Rock Resorts, Inc. | $ 82,735 | $ (25,734) | $ 133,915 | $ (5,834) |
Earnings Per Share [Abstract] | ||||
Earnings per share of Class A common stock, basic (in dollars per share) | $ 1.20 | $ (0.38) | $ 1.94 | $ (0.09) |
Earnings per share of Class A common stock, diluted (in dollars per share) | $ 0.82 | $ (0.38) | $ 1.46 | $ (0.09) |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 69,124 | 67,311 | 68,962 | 66,506 |
Diluted (in shares) | 117,002 | 67,311 | 116,973 | 66,506 |
Dividends declared per common share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income (loss) | $ 99,102 | $ (50,171) | $ 181,232 | $ (4,752) |
(Loss) gain on interest rate swaps: | ||||
Unrealized loss arising during period | 0 | (2,606) | 0 | (1,491) |
Reclassification into income | (600) | 783 | (1,210) | 2,011 |
(Loss) gain on interest rate swaps recognized in other comprehensive (loss) income | (600) | (1,823) | (1,210) | 520 |
Loss on available-for-sale securities: | ||||
Unrealized gain arising during period | 0 | 0 | 0 | 8 |
Reclassification into income | 0 | 0 | 0 | (120) |
Loss on available-for-sale securities recognized in other comprehensive (loss) income | 0 | 0 | 0 | (112) |
Other comprehensive (loss) income, net of tax | (600) | (1,823) | (1,210) | 408 |
Comprehensive income (loss) | 98,502 | (51,994) | 180,022 | (4,344) |
Less: comprehensive income (loss) attributable to noncontrolling interests | 16,093 | (25,416) | 46,758 | 1,308 |
Comprehensive income (loss) attributable to Red Rock Resorts, Inc. | $ 82,409 | $ (26,578) | $ 133,264 | $ (5,652) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 181,232 | $ (4,752) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 89,156 | 92,060 |
Change in fair value of derivative instruments | (23,124) | (3,369) |
Reclassification of unrealized (gain) loss on derivative instruments into income | (1,387) | 2,521 |
Write-downs and other charges, net | 759 | 3,347 |
Tax receivable agreement liability adjustment | (90,375) | (444) |
Amortization of debt discount and debt issuance costs | 8,006 | 8,918 |
Share-based compensation | 5,557 | 3,738 |
Earnings from joint ventures | (1,107) | (835) |
Distributions from joint ventures | 911 | 705 |
Loss on extinguishment/modification of debt, net | 0 | 2,994 |
Deferred income tax | 25,702 | 157 |
Changes in assets and liabilities: | ||
Receivables, net | 5,148 | 3,723 |
Inventories and prepaid expenses | (9,265) | (4,092) |
Accounts payable | 8,310 | 6,939 |
Accrued interest payable | (2,921) | (6,698) |
Income tax payable/receivable, net | 176 | (1,721) |
Other accrued liabilities | 2,567 | (2,056) |
Other, net | (8,324) | 1,847 |
Net cash provided by operating activities | 191,021 | 102,982 |
Cash flows from investing activities: | ||
Capital expenditures, net of related payables | (257,698) | (101,855) |
Proceeds from asset sales | 4,538 | 627 |
Acquisition of land from related party | 0 | (23,440) |
Distributions in excess of earnings from joint ventures | 764 | 660 |
Native American development costs | (226) | (2,134) |
Net settlement of derivative instruments | 3,929 | 0 |
Other, net | (2,861) | (6,539) |
Net cash used in investing activities | (251,554) | (132,681) |
Cash flows from financing activities: | ||
Borrowings under credit agreements with original maturity dates greater than three months | 0 | 729,688 |
Payments under credit agreements with original maturity dates greater than three months | (11,519) | (377,453) |
Partial redemption of 7.50% Senior Notes | 0 | (250,000) |
Cash paid for early extinguishment of debt | 0 | (9,401) |
Proceeds from exercise of stock options | 4,344 | 1,574 |
Distributions to members and noncontrolling interests | (10,479) | (23,691) |
Dividends | (13,840) | (13,338) |
Payment of debt issuance costs | 0 | (21,098) |
Payments on other debt | (1,175) | (3,634) |
Payments on tax receivable agreement liability | (28,865) | 0 |
Acquisition of subsidiary noncontrolling interests | 0 | (4,484) |
Other, net | (757) | (6,481) |
Net cash (used in) provided by financing activities | (62,291) | 21,682 |
Decrease in cash, cash equivalents and restricted cash | (122,824) | (8,017) |
Balance, beginning of period | 234,744 | 136,153 |
Balance, end of period | 111,920 | 128,136 |
Cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 108,418 | 125,307 |
Restricted cash | 3,502 | 2,829 |
Balance, end of period | 111,920 | 128,136 |
Supplemental cash flow disclosures: | ||
Cash paid for interest, net of $3,674 and $197 capitalized, respectively | 59,630 | 63,456 |
Cash paid for income taxes, net of refunds received | (176) | 430 |
Non-cash investing and financing activities: | ||
Capital expenditures incurred but not yet paid | $ 92,083 | $ 26,465 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Capitalized Interest | $ 3,674 | $ 197 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Significant Accounting Policies | Organization, Basis of Presentation and Significant Accounting Policies Organization Red Rock Resorts, Inc. (“Red Rock,” or the “Company”) was formed as a Delaware corporation in September 2015 to own an equity interest in and manage Station Casinos LLC (“Station LLC”). In May 2016, the Company completed an initial public offering (“IPO”) and used the proceeds to purchase newly issued limited liability company interests in Station Holdco LLC (“Station Holdco” and such units, the “LLC Units”), and outstanding LLC Units from existing members of Station Holdco. The Company owns all of the outstanding voting interests in Station LLC and has an indirect interest in Station LLC through its ownership interest in Station Holdco, which owns all of the economic interests in Station LLC. Station LLC, a Nevada limited liability company, is a gaming, development and management company that owns and operates ten major gaming and entertainment facilities and ten smaller casino properties ( three of which are 50% owned) in the Las Vegas regional market. Station LLC also manages Graton Resort in Sonoma County, California on behalf of a Native American tribe. Station LLC managed Gun Lake Casino in Allegan County, Michigan on behalf of another Native American tribe through February 6, 2018. At June 30, 2018 , the Company held approximately 59.8% of the economic interests in Station Holdco as well as 100% of the voting interest in Station LLC and 100% of the voting power in Station Holdco, subject to certain limited exceptions, and is the designated sole managing member of both Station Holdco and Station LLC. The Company controls and operates all of the business and affairs of Station Holdco and Station LLC, and conducts all of its operations through these entities. The Company is subject to federal income taxes and is subject to state income taxes in California and Michigan. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the results for the interim periods have been made. The interim results reflected in these condensed consolidated financial statements are not necessarily indicative of results to be expected for the full fiscal year. These financial statements should be read in conjunction with the audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Certain amounts in the condensed consolidated financial statements for the prior year have been reclassified to be consistent with the current year presentation. Principles of Consolidation Station Holdco and Station LLC are variable interest entities (“VIEs”), of which the Company is the primary beneficiary. Accordingly, the Company consolidates the financial position and results of operations of Station LLC and its consolidated subsidiaries and Station Holdco, and presents the interest in Station Holdco not owned by Red Rock within noncontrolling interest in the condensed consolidated financial statements. All intercompany accounts and transactions have been eliminated. The amounts shown in the accompanying condensed consolidated financial statements also include the accounts of MPM Enterprises, LLC (“MPM”), which is a 50% owned, consolidated VIE that managed Gun Lake Casino through February 2018. The Company is the primary beneficiary of MPM. As such, it consolidates MPM and the financial position and results of operations attributable to third party holdings of MPM are reported within noncontrolling interest in the condensed consolidated financial statements. The net assets of MPM reflected in the Condensed Consolidated Balance Sheet at December 31, 2017 totaled $2.1 million . The Gun Lake Casino management agreement expired on February 6, 2018. The Company has investments in three 50% owned smaller casino properties which are joint ventures accounted for using the equity method. The carrying amount of the Company’s investment in one of the smaller casino properties has been reduced below zero and is presented as a deficit investment balance on the Condensed Consolidated Balance Sheets. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported and disclosed. Actual results could differ from those estimates. Significant Accounting Policies A description of the Company’s significant accounting policies is included in the audited financial statements within its Annual Report on Form 10-K for the year ended December 31, 2017 . The Company updated its revenue recognition accounting policy as described in Note 2 in conjunction with the adoption of the new accounting standard for revenue recognition. Recently Issued and Adopted Accounting Standards In May 2017, the Financial Accounting Standards Board (“FASB”) issued accounting guidance that amends the scope of modification accounting for share-based payment arrangements. The amended guidance clarifies which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting. The Company adopted this guidance in the first quarter of 2018. The adoption did not have an impact on the Company’s financial position or results of operations. In March 2017, the FASB issued amended accounting guidance on the presentation of net periodic pension and postretirement cost. The amendment requires that the service cost component must be separated from the other components and classified as compensation expense in the same income statement line item as payroll costs for the employees who are receiving the retirement benefit. Further, only the service cost component is eligible for capitalization in inventory or other internally constructed assets. Other cost components are required to be reported below the subtotal for operating results, and their classification is required to be disclosed. The Company adopted this guidance in the first quarter of 2018. The Company’s defined benefit pension plan has been curtailed since 2009 and as a result, no service cost is being incurred. Accordingly, upon adoption of the amended guidance, the Company reclassified the expense associated with the defined benefit pension plan to other expense for all periods presented, and the adoption did not have an impact on net income. In November 2016, the FASB issued amended accounting guidance on the presentation of restricted cash in the statement of cash flows. This amendment requires that a statement of cash flows explain the change during the reporting period in the total of cash, cash equivalents, and restricted cash or restricted cash equivalents. The Company adopted this guidance in the first quarter of 2018 using the retrospective transition method, as required by the new standard. The adoption did not have an impact on the Company’s financial position or results of operations. In August 2016, the FASB issued amended accounting guidance intended to reduce diversity in practice in how cash receipts and cash payments are presented and classified in the statement of cash flows. The amendment addresses specific cash flow issues including the presentation and classification of debt prepayment or debt extinguishment costs and distributions received from equity method investees. The amended guidance also addresses the presentation and classification of separately identifiable cash flows and the application of the predominance principle. The Company adopted this guidance in the first quarter of 2018 using the retrospective transition method, as required by the new standard. The adoption did not have an impact on the Company’s statement of cash flows. In February 2016, the FASB issued a new accounting standard that changes the accounting for leases and requires expanded disclosures about leasing activities. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability, measured on a discounted basis, at the commencement date for leases with terms greater than twelve months. Lessor accounting will remain largely unchanged, other than certain targeted improvements intended to align lessor accounting with the lessee accounting model and with the new revenue recognition guidance discussed in Note 2 . An optional transition approach is permitted, allowing companies to forgo comparative reporting and instead adopt the guidance on a prospective basis. The amended guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and early adoption is permitted. The Company will adopt this standard as of the first quarter of 2019 using the optional transition approach. The Company is currently evaluating the financial statement impacts of adopting the amended guidance, which will include recognizing lease liabilities and related right-of-use assets on the balance sheet for operating leases as of the date of adoption. In May 2014, the FASB issued a new accounting standard for revenue recognition which requires entities to recognize revenue when it transfers 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. The Company adopted this guidance in the first quarter of 2018 and elected to apply the full retrospective adoption method. Under the new standard, the historical presentation of gross revenues for complimentary goods and services provided to guests with a corresponding offsetting amount included in promotional allowances has been eliminated. Promotional allowances are recorded primarily as reductions to casino revenue based on the standalone selling price of the complimentary goods and services provided. The adoption of the new standard also eliminated the historical practice of reclassifying the total cost incurred associated with complimentaries from the expense line of the department fulfilling the complimentary to the expense line of the department that granted the complimentary to the guest. Under the new standard, revenues and expenses associated with providing complimentaries are classified based on the goods and services provided. When guests earn points under the Company’s player rewards program (the “Rewards Program”), the Company recognizes a liability for the redemption value of such points, which are considered future performance obligations under the new standard. The recognition of the Rewards Program point liability primarily reduces casino revenue. Previously, the Company recorded a liability for the estimated incremental cost of providing complimentary services earned under the Rewards Program. Additionally, amounts paid for wide area progressive operator fees and mandatory service charges that were previously recorded net in revenue are recorded gross, resulting in an increase in revenue with a corresponding increase in expense. See Note 2 for additional information. Adoption of the new standard using the full retrospective method required the Company to apply the new guidance to each prior reporting period presented. The adoption did not have a significant impact on net income for the periods presented. The following tables present the impact of adoption of the new standard to previously reported selected financial statement information (in thousands, except per share data): Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Gross revenues $ 432,715 $ (22,572 ) $ 410,143 $ 878,613 $ (42,732 ) $ 835,881 Promotional allowances (29,222 ) 29,222 — (57,388 ) 57,388 — Net revenues 403,493 6,650 410,143 821,225 14,656 835,881 Net loss (50,494 ) 323 (50,171 ) (5,280 ) 528 (4,752 ) Net loss attributable to Red Rock Resorts, Inc. (25,920 ) 186 (25,734 ) (6,137 ) 303 (5,834 ) Loss per share of Class A common stock, basic and diluted (0.39 ) 0.01 (0.38 ) (0.09 ) — (0.09 ) December 31, 2017 As Reported Adjustments As Adjusted Deferred tax asset, net $ 132,220 $ 511 $ 132,731 Other accrued liabilities 176,813 6,090 182,903 Total stockholders’ equity 637,291 (5,579 ) 631,712 December 31, 2016 As Reported Adjustments As Adjusted Total stockholders’ equity $ 633,352 $ (5,754 ) $ 627,598 The Company’s historical net cash flows from operating, investing and financing activities were not impacted by the adoption of the new standard. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue The Company’s revenue contracts with customers consist of gaming wagers, sales of food, beverage, hotel rooms and other amenities, and agreements to provide management services. Revenues are recognized when control of the promised goods or services is transferred to the guest, in an amount that reflects the consideration that the Company expects to be entitled to receive in exchange for those goods or services, referred to as the transaction price. Other revenues also include rental income from tenants, which is recognized over the lease term, and contingent rental income, which is recognized when the right to receive such rental income is established according to the lease agreements. Revenue is recognized net of cash sales incentives and discounts and excludes sales and other taxes collected from guests on behalf of governmental authorities. The Company applies a practical expedient and accounts for its gaming and non-gaming contracts on a portfolio basis. This is because individual customer contracts have similar characteristics, and the Company reasonably expects the effects on the financial statements of applying its revenue recognition policy to the portfolio would not differ materially from applying its policy to the individual contracts. A summary of net revenues disaggregated by type of revenue and reportable segment is presented below (amounts in thousands). Refer to Note 16 for a discussion of the Company’s reportable segments. Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Las Vegas operations Native American management Corporate and other Total Las Vegas operations Native American management Corporate and other Total Casino $ 232,756 $ — $ — $ 232,756 $ 219,136 $ — $ — $ 219,136 Food and beverage 94,632 — — 94,632 91,596 — — 91,596 Room 42,719 — — 42,719 45,194 — — 45,194 Other (a) 23,431 — 1,486 24,917 22,083 — 1,458 23,541 Management fees 144 21,020 — 21,164 133 30,543 — 30,676 Net revenues $ 393,682 $ 21,020 $ 1,486 $ 416,188 $ 378,142 $ 30,543 $ 1,458 $ 410,143 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Las Vegas operations Native American management Corporate and other Total Las Vegas operations Native American management Corporate and other Total Casino $ 469,003 $ — $ — $ 469,003 $ 442,672 $ — $ — $ 442,672 Food and beverage 185,560 — — 185,560 190,142 — — 190,142 Room 89,349 — — 89,349 95,954 — — 95,954 Other (a) 44,623 — 2,850 47,473 43,363 — 2,847 46,210 Management fees 317 45,525 — 45,842 255 60,648 — 60,903 Net revenues $ 788,852 $ 45,525 $ 2,850 $ 837,227 $ 772,386 $ 60,648 $ 2,847 $ 835,881 ____________________________________ (a) Other revenue included revenue from tenant leases of $6.2 million for the three months ended June 30, 2018 and 2017 , and $12.3 million and $12.1 million for the six months ended June 30, 2018 and 2017 , respectively. Revenue from tenant leases is accounted for under the lease accounting guidance and does not represent revenue recognized from contracts with customers. Casino Revenue Casino revenue includes gaming activities such as slot, table game and sports wagering. The transaction price for a gaming wagering contract is the difference between gaming wins and losses, not the total amount wagered. The transaction price is reduced for consideration payable to a guest, such as cash sales incentives and the change in progressive jackpot liabilities. Gaming contracts are typically completed daily based on the outcome of the wagering transaction and include a distinct performance obligation to provide gaming activities. Guests may receive discretionary incentives for complimentary food, beverage, rooms, entertainment and merchandise to encourage additional gaming, or may earn loyalty points based on their gaming activity. The Company allocates the transaction price to each performance obligation in the gaming wagering contract. The amount allocated to loyalty points earned is based on an estimate of the standalone selling price of the loyalty points, which is determined by the redemption value less an estimate for points not expected to be redeemed. The amount allocated to discretionary complimentaries is the standalone selling price of the underlying goods or services, which is determined using the retail price at which those goods or services would be sold separately in similar transactions. The remaining amount of the transaction price is allocated to wagering activity using the residual approach as the standalone selling price for gaming wagers is highly variable and no set established price exists for gaming wagers. Amounts allocated to wagering are recognized as casino revenue when the result of the wager is determined, and amounts allocated to loyalty points and discretionary complimentaries are recognized as revenue when the goods or services are provided. Non-gaming Revenue Non-gaming revenues include sales of food, beverage, hotel rooms and other amenities such as retail merchandise, bowling, spa services and entertainment. The transaction price is the net amount collected from the guest and includes a distinct performance obligation to provide such goods or services. Non-gaming revenues are recognized when the goods or services are provided to the guest. Guests may also earn loyalty points from non-gaming purchases or receive discretionary complimentaries that require the transaction price to be allocated to each performance obligation on a relative standalone selling price basis. Non-gaming revenues also include the portion of the transaction price from gaming or non-gaming contracts allocated to discretionary complimentaries and the value of loyalty points redeemed for food, beverage, room and other amenities. Discretionary complimentaries are classified in the departmental revenue category fulfilling the complimentary with a corresponding reduction in the departmental revenues that provided the complimentary, which is primarily casino revenue. Included in non-gaming revenues are discretionary complimentaries and loyalty point redemptions of $49.8 million and $45.2 million for the three months ended June 30, 2018 and 2017 , respectively, and $98.6 million and $90.5 million for the six months ended June 30, 2018 and 2017 , respectively. Management Fee Revenue Management fee revenue primarily represents fees earned from the Company’s management agreements with Native American tribes. The transaction price for management contracts is the management fee to which the Company is entitled for its management services. The management fee represents variable consideration as it is based on a percentage of net income of the managed property, as defined in the management agreements. The management services are a single performance obligation to provide a series of distinct services over the term of the management agreement. The Company allocates and recognizes the management fee monthly as it is earned because there is a consistent measure throughout the contract period that reflects the value to the Native American tribe each month. Rewards Program The Rewards Program point liability represents deferred gaming and non-gaming revenue at the redemption value of loyalty points earned under the Rewards Program that management ultimately believes will be redeemed. The loyalty points earned represent future performance obligations of the Company. Guests are able to accumulate loyalty points over time that they may redeem at their discretion under the terms of the Rewards Program. Loyalty points may be redeemed for cash, free slot play, food, beverage, rooms, entertainment and merchandise. When points are redeemed for cash, the point liability is reduced for the amount of cash paid out. When points are redeemed for free slot play, food, beverage, rooms, entertainment and merchandise, revenues are recognized when the goods or services are provided, and such revenues are classified based on the type of goods or services provided with a corresponding reduction to the point liability. The Company’s performance obligation related to its loyalty point liability is generally completed within one year, as a guest’s loyalty point balance is forfeited after six months of inactivity for a local guest and after thirteen months for an out-of-town guest, as defined in the Rewards Program. The Company’s loyalty point liability was $20.6 million and $20.3 million at June 30, 2018 and December 31, 2017 , respectively. Loyalty points are generally earned and redeemed continually over time. As a result, the loyalty point liability balance remains relatively constant. Contract Balances The Company’s accounts receivable primarily represent receivables from contracts with customers and consist mainly of casino, hotel, ATM, cash advance, retail, management fees and other receivables, which are typically non-interest bearing. The Company has no material contract assets. Customer contract liabilities related to future performance obligations consist of the Rewards Program point liability, advance deposits on goods or services yet to be provided and wagers for future sporting events. Customer contract liabilities are included in Other accrued liabilities in the Condensed Consolidated Balance Sheets. Excluding the Rewards Program point liability, contract liabilities were $23.9 million and $24.8 million at June 30, 2018 and December 31, 2017 , respectively. Advance deposits and wagers for future sporting events represent cash payments received from guests that are typically recognized in revenues within one year from the date received. Fluctuations in these balances are a result of normal operating activities. The Company also has other customer-related liabilities that primarily include unpaid wagers and outstanding chips. Other customer-related liabilities were $6.9 million and $8.5 million at June 30, 2018 and December 31, 2017 , respectively, and primarily are included in Other accrued liabilities in the Condensed Consolidated Balance Sheets. Unpaid wagers include unredeemed gaming tickets that are exchanged for cash, and outstanding chips represent amounts owed to guests in exchange for gaming chips in their possession that may be redeemed for cash or recognized as revenue. Changes in other customer-related liabilities are a result of normal operating activities. |
Noncontrolling Interest in Stat
Noncontrolling Interest in Station Holdco | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest in Station Holdco | Noncontrolling Interest in Station Holdco As discussed in Note 1 , Red Rock holds a controlling interest in and consolidates the financial position and results of operations of Station LLC and its subsidiaries and Station Holdco, and the interests in Station Holdco not owned by Red Rock are presented within noncontrolling interest in the condensed consolidated financial statements. During the three and six months ended June 30, 2018 , approximately 0.1 million and 0.4 million , respectively, of LLC Units and Class B common shares held by noncontrolling interest holders were exchanged for shares of Class A common stock, which increased Red Rock’s ownership interest in Station Holdco. For both the three and six months ended June 30, 2017 , a total of approximately 2.0 million of such units and shares were exchanged for shares of Class A common stock. The ownership of the LLC Units is summarized as follows: June 30, 2018 December 31, 2017 Units Ownership % Units Ownership % Red Rock 69,626,748 59.8 % 68,897,563 59.3 % Noncontrolling interest holders 46,884,413 40.2 % 47,264,413 40.7 % Total 116,511,161 100.0 % 116,161,976 100.0 % The Company uses monthly weighted-average LLC Unit ownership to calculate the pretax income (loss) and other comprehensive (loss) income of Station Holdco attributable to Red Rock and the noncontrolling interest holders. |
Native American Development
Native American Development | 6 Months Ended |
Jun. 30, 2018 | |
Development Disclosure [Abstract] | |
Native American Development | Native American Development Following is information about the Company’s Native American development activities. North Fork Rancheria of Mono Indian Tribe The Company has development and management agreements with the North Fork Rancheria of Mono Indians (the “Mono”), a federally recognized Native American tribe located near Fresno, California, which were originally entered into in 2003. In August 2014, the Mono and the Company entered into the Second Amended and Restated Development Agreement (the “Development Agreement”) and the Second Amended and Restated Management Agreement. Pursuant to those agreements, the Company will assist the Mono in developing and operating a gaming and entertainment facility (the “North Fork Project”) to be located in Madera County, California. The Company purchased a 305 -acre parcel of land adjacent to Highway 99 north of the city of Madera (the “North Fork Site”), which was taken into trust for the benefit of the Mono by the Department of the Interior (“DOI”) in February 2013. As currently contemplated, the North Fork Project is expected to include approximately 2,000 slot machines, approximately 40 table games and several restaurants, and the cost of the project is expected to be between $250 million and $300 million . Development of the North Fork Project is subject to certain governmental and regulatory approvals, including, but not limited to, approval of the Management Agreement by the Chairman of the National Indian Gaming Commission (“NIGC”). Under the terms of the Development Agreement, the Company has agreed to arrange the financing for the ongoing development costs and construction of the facility. The Company will contribute significant financial support to the North Fork Project. Through June 30, 2018 , the Company has paid approximately $32.7 million of reimbursable advances to the Mono, primarily to complete the environmental impact study, purchase the North Fork Site and pay the costs of litigation. The advances are expected to be repaid from the proceeds of third-party financing or from the Mono’s gaming revenues; however, there can be no assurance that the advances will be repaid. The carrying amount of the advances was reduced to fair value upon the Company’s adoption of fresh-start reporting in 2011. At June 30, 2018 , the carrying amount of the advances was $17.6 million . In accordance with the Company’s accounting policy, accrued interest on the advances will not be recognized in income until the carrying amount of the advances has been recovered. The Company will receive a development fee of 4% of the costs of construction (as defined in the Development Agreement) for its development services, which will be paid upon the commencement of gaming operations at the facility. In March 2018, the Mono submitted a proposed Third Amended and Restated Management Agreement (the “Management Agreement”) to the NIGC. The Management Agreement allows the Company to receive a management fee of 30% of the North Fork Project’s net income. The Management Agreement and the Development Agreement have a term of seven years from the opening of the North Fork Project. The Management Agreement includes termination provisions whereby either party may terminate the agreement for cause, and the Management Agreement may also be terminated at any time upon agreement of the parties. There is no provision in the Management Agreement allowing the tribe to buy-out the agreement prior to its expiration. The Management Agreement provides that the Company will train the Mono tribal members such that they may assume responsibility for managing the North Fork Project upon the expiration of the agreement. Upon termination or expiration of the Management Agreement and Development Agreement, the Mono will continue to be obligated to repay any unpaid principal and interest on the advances from the Company, as well as certain other amounts that may be due, such as management fees. Amounts due to the Company under the Development Agreement and Management Agreement are secured by substantially all of the assets of the North Fork Project except the North Fork Site. In addition, the Development Agreement and Management Agreement contain waivers of the Mono’s sovereign immunity from suit for the purpose of enforcing the agreements or permitting or compelling arbitration and other remedies. The timing of this type of project is difficult to predict and is dependent upon the receipt of the necessary governmental and regulatory approvals. There can be no assurance as to when, or if, these approvals will be obtained. The Company currently estimates that construction of the North Fork Project may begin in the next 21 to 33 months and estimates that the North Fork Project would be completed and opened for business approximately 18 months after construction begins. There can be no assurance, however, that the North Fork Project will be completed and opened within this time frame or at all. The Company expects to assist the Mono in obtaining third-party financing for the North Fork Project once all necessary regulatory approvals have been received and prior to commencement of construction; however, there can be no assurance that the Company will be able to obtain such financing for the North Fork Project on acceptable terms or at all. The Company has evaluated the likelihood that the North Fork Project will be successfully completed and opened, and has concluded that the likelihood of successful completion is in the range of 65% to 75% at June 30, 2018 . The Company’s evaluation is based on its consideration of all available positive and negative evidence about the status of the North Fork Project, including, but not limited to, the status of required regulatory approvals, as well as the progress being made toward the achievement of all milestones and the successful resolution of all litigation and contingencies. There can be no assurance that the North Fork Project will be successfully completed or that future events and circumstances will not change the Company’s estimates of the timing, scope, and potential for successful completion or that any such changes will not be material. In addition, there can be no assurance that the Company will recover all of its investment in the North Fork Project even if it is successfully completed and opened for business. The following table summarizes the Company’s evaluation at June 30, 2018 of each of the critical milestones necessary to complete the North Fork Project. As of June 30, 2018 Federally recognized as an Indian tribe by the Bureau of Indian Affairs (“BIA”) Yes Date of recognition Federal recognition was terminated in 1966 and restored in 1983. Tribe has possession of or access to usable land upon which the project is to be built The DOI accepted approximately 305 acres of land for the project into trust for the benefit of the Mono in February 2013. Status of obtaining regulatory and governmental approvals: Tribal-state compact A compact was negotiated and signed by the Governor of California and the Mono in August 2012. The California State Assembly and Senate passed Assembly Bill 277 (“AB 277”) which ratified the Compact in May 2013 and June 2013, respectively. Opponents of the North Fork Project qualified a referendum, “Proposition 48,” for a state-wide ballot challenging the legislature’s ratification of the Compact. In November 2014, Proposition 48 failed. The State took the position that the failure of Proposition 48 nullified the ratification of the Compact and, therefore, the Compact did not take effect under California law. In March 2015, the Mono filed suit against the State (see North Fork Rancheria of Mono Indians v. State of California) to obtain a compact with the State or procedures from the Secretary of the Interior under which Class III gaming may be conducted on the North Fork Site. In July 2016, the DOI issued Secretarial procedures (the “Secretarial Procedures”) pursuant to which the Mono may conduct Class III gaming on the North Fork Site. Approval of gaming compact by DOI The Compact was submitted to the DOI in July 2013. In October 2013, notice of the Compact taking effect was published in the Federal Register. The Secretarial Procedures supersede and replace the Compact. Record of decision regarding environmental impact published by BIA In November 2012, the record of decision for the Environmental Impact Statement for the North Fork Project was issued by the BIA. In December 2012, the Notice of Intent to take land into trust was published in the Federal Register. BIA accepting usable land into trust on behalf of the tribe The North Fork Site was accepted into trust in February 2013. Approval of management agreement by NIGC In December 2015, the Mono submitted a Second Amended and Restated Management Agreement, and certain related documents, to the NIGC. In July 2016, the Mono received a deficiency letter from the NIGC seeking additional information concerning the Second Amended and Restated Management Agreement. In March 2018, the Mono submitted the Management Agreement and certain related documents to the NIGC. In June 2018, the Mono received a deficiency letter from the NIGC seeking additional information concerning the Management Agreement. Approval of the Management Agreement by the NIGC is expected to occur following the Mono’s response to the deficiency letter. The Company believes the Management Agreement will be approved because the terms and conditions thereof are consistent with the provisions of the Indian Gaming Regulatory Act (“IGRA”). Gaming licenses: Type The North Fork Project will include the operation of Class II and Class III gaming, which are allowed pursuant to the terms of the Secretarial Procedures and IGRA, following approval of the Management Agreement by the NIGC. Number of gaming devices allowed The Secretarial Procedures allow for the operation of a maximum of 2,000 Class III slot machines at the facility during the first two years of operation and thereafter up to 2,500 Class III slot machines. There is no limit on the number of Class II gaming devices that the Mono can offer. Agreements with local authorities The Mono has entered into memoranda of understanding with the City of Madera, the County of Madera and the Madera Irrigation District under which the Mono agreed to pay one-time and recurring mitigation contributions, subject to certain contingencies. The memoranda of understanding with the City and County were amended in December 2016 to restructure the timing of certain payments due to delays in the development of the North Fork Project. Following is a discussion of legal matters related to the North Fork Project. Stand Up For California! v. Dept. of the Interior. In December 2012, Stand Up for California!, several individuals and the Ministerial Association of Madera (collectively, the “Stand Up” plaintiffs) filed a complaint in the United States District Court for the District of Columbia against the DOI, the BIA and the Secretary of Interior and Assistant Secretary of the Interior, in their official capacities, seeking to overturn the Secretary’s determination to take the North Fork Site into trust for the purposes of gaming (the “North Fork Determination”) and seeking declaratory and injunctive relief to prevent the United States from taking the North Fork Site into trust. The Mono filed a motion to intervene as a party to the lawsuit, which was granted. In January 2013, the Court denied the Stand Up plaintiffs’ Motion for Preliminary Injunction and the United States accepted the North Fork Site into trust for the benefit of the Mono in February 2013. The parties subsequently filed motions for summary judgment. In September 2016, the Court denied the Stand Up plaintiffs’ motions for summary judgment and granted the defendants’ and the Mono’s motions for summary judgment in part and dismissed the remainder of the Stand Up plaintiffs’ claims. The Stand Up plaintiffs appealed the district court’s decision to the United States Court of Appeals for the District of Columbia Circuit, which heard oral argument on the appeal on October 13, 2017. On January 12, 2018, the United States Court of Appeals for the District of Columbia Circuit affirmed the decision of the district court in favor of the defendants and the Mono. On February 26, 2018, the Stand Up plaintiffs filed a petition for rehearing en banc of the January 12, 2018 decision, which petition for rehearing was denied on April 10, 2018. On July 9, 2018, the Stand Up plaintiffs filed a Petition for Writ of Certiorari in the Supreme Court of the United States. Stand Up For California! v. Brown. In March 2013, Stand Up for California! and Barbara Leach, a local resident, filed a complaint for declaratory relief and petition for writ of mandate in California Superior Court for the County of Madera against California Governor Edmund G. Brown, Jr., alleging that Governor Brown violated the California constitutional separation-of-powers doctrine when he concurred in the North Fork Determination. The complaint sought to vacate and set aside the Governor’s concurrence. Plaintiffs’ complaint was subsequently amended to include a challenge to the constitutionality of AB 277. The Mono intervened as a defendant in the lawsuit. In March 2014, the court dismissed plaintiffs’ amended complaint, which dismissal was appealed by plaintiffs. In December 2016, an appellate court ruled in favor of the Stand Up plaintiffs concluding that Governor Brown exceeded his authority in concurring in the Secretary’s determination that gaming on the North Fork Site would be in the best interest of the Tribe and not detrimental to the surrounding community. The appellate court’s decision reversed the trial court’s previous ruling in favor of the Mono. The Mono and the State filed petitions in the Supreme Court of California seeking review of the appellate court’s decision. In March 2017, the Supreme Court of California granted the Mono and State’s petitions for review and deferred additional briefing or other action in this matter pending consideration and disposition of a similar issue in United Auburn Indian Community of Auburn Rancheria v. Brown. The United Auburn case was fully briefed in December 2017. Oral argument has not yet been scheduled. Picayune Rancheria of Chukchansi Indians v. Brown . In March 2016, Picayune Rancheria of Chukchansi Indians (“Picayune”) filed a complaint for declaratory relief and petition for writ of mandate in California Superior Court for the County of Madera against Governor Edmund G. Brown, Jr., alleging that the referendum that invalidated the Compact also invalidated Governor Brown’s concurrence with the North Fork Determination. The complaint seeks to vacate and set aside the Governor’s concurrence. In July 2016, the court granted the Mono’s application to intervene and the Mono filed a demurrer seeking to dismiss the case. In November 2016, the district court dismissed Picayune’s complaint, but the court subsequently vacated its ruling based on the December 2016 decision by the Fifth District Court of Appeal in Stand Up for California! v. Brown . In May 2017, the court stayed the case for six months by agreement of the parties and scheduled a status conference on November 13, 2017 to address how the case should proceed in light of the California Supreme Court’s granting of the Mono and State’s petitions for review in Stand Up for California! v. Brown . The case remains stayed. Picayune Rancheria of Chukchansi Indians v. United States Department of the Interior. In July 2016, Picayune filed a complaint in the United States District Court for the Eastern District of California for declaratory and injunctive relief against the DOI. The complaint sought a declaration that the North Fork Site did not come under one of the exceptions to the general prohibition against gaming on lands taken into trust after October 1988 set forth in IGRA and therefore was not eligible for gaming. It also sought a declaration that the North Fork Determination had expired because the legislature never ratified Governor Brown’s concurrence, and sought injunctive relief prohibiting the DOI from taking any action under IGRA concerning the North Fork Site. The Mono filed a motion to intervene in September 2016, which was subsequently granted. The Mono and federal defendants filed motions for summary judgment in March 2017. On August 8, 2017, Picayune filed a brief arguing that the court should stay the proceedings in light of the Fifth District Court’s decision in Stand Up for California! v. Brown and the appeal pending in the California Supreme Court. On August 18, 2017, the court denied the Picayune’s motion to stay the proceedings and granted the summary judgment motions of the Mono and the federal defendants. Picayune has not filed a timely notice of appeal. Stand Up for California! et. al. v. United States Department of the Interior. In November 2016, Stand Up for California! and other plaintiffs filed a complaint in the United States District Court for the Eastern District of California alleging that the DOI’s issuance of Secretarial Procedures for the Mono was subject to the National Environmental Policies Act and the Clean Air Act, and violate the Johnson Act. The complaint further alleges violations of the Freedom of Information Act and the Administrative Procedures Act. The DOI filed its answer to the complaint in February 2017 denying plaintiffs’ claims and asserting certain affirmative defenses. A motion to intervene filed by the Mono was granted in March 2017. Plaintiffs subsequently filed a motion to stay the proceedings in May 2017. Briefing on the contested stay request concluded in July 2017 and briefing on cross-motions for summary judgment was concluded in September 2017. On July 18, 2018, the court denied plaintiffs’ motion to stay the proceedings and granted the summary judgment motions of the Mono and the federal defendants. |
Other Accrued Liabilities (Note
Other Accrued Liabilities (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Other Accrued Liabilities [Abstract] | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | Other Accrued Liabilities Other accrued liabilities consisted of the following (amounts in thousands): June 30, December 31, 2017 Accrued gaming and related $ 53,975 $ 57,070 Accrued payroll and related 53,705 51,095 Construction payables and equipment purchase accruals 95,916 39,673 Advance deposits 14,534 13,914 Other 24,149 21,151 $ 242,279 $ 182,903 |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Long-term debt consisted of the following indebtedness of Station LLC (amounts in thousands): June 30, December 31, 2017 Term Loan B Facility, due June 8, 2023, interest at a margin above LIBOR or base rate (4.60% and 4.06% at June 30, 2018 and December 31, 2017, respectively), net of unamortized discount and deferred issuance costs of $48.6 million and $53.2 million at June 30, 2018 and December 31, 2017, respectively $ 1,780,066 $ 1,780,193 Term Loan A Facility, due June 8, 2022, interest at a margin above LIBOR or base rate (4.09% and 3.36% at June 30, 2018 and December 31, 2017, respectively), net of unamortized discount and deferred issuance costs of $4.6 million and $5.2 million at June 30, 2018 and December 31, 2017, respectively 257,653 263,860 $781 million Revolving Credit Facility, due June 8, 2022, interest at a margin above LIBOR or base rate — — 5.00% Senior Notes, due October 1, 2025, net of unamortized deferred issuance costs of $6.1 million and $6.4 million at June 30, 2018 and December 31, 2017, respectively 543,936 543,596 Other long-term debt, weighted-average interest of 3.96% and 3.95% at June 30, 2018 and December 31, 2017, respectively, maturity dates ranging from 2027 to 2037 28,998 30,173 Total long-term debt 2,610,653 2,617,822 Current portion of long-term debt (34,864 ) (30,094 ) Total long-term debt, net $ 2,575,789 $ 2,587,728 Credit Facility Station LLC’s credit facility consists of the Term Loan B Facility, the Term Loan A Facility and the Revolving Credit Facility (collectively, the “Credit Facility”). The credit agreement governing the Credit Facility contains a number of customary covenants, including requirements that Station LLC maintain throughout the term of the Credit Facility and measured as of the end of each quarter, an interest coverage ratio of not less than 2.50 to 1.00 and a maximum consolidated total leverage ratio ranging from 6.50 to 1.00 at June 30, 2018 to 5.25 to 1.00 at December 31, 2020 and thereafter. A breach of the financial ratio covenants shall only become an event of default under the Term Loan B Facility if the lenders providing the Term Loan A Facility and the Revolving Credit Facility take certain affirmative actions after the occurrence of a default of such financial ratio covenants. At June 30, 2018 , Station LLC’s interest coverage ratio was 4.60 to 1.00 and its consolidated total leverage ratio was 5.07 to 1.00 , both as defined in the Credit Facility. The Company believes it was in compliance with all applicable covenants at June 30, 2018 . Revolving Credit Facility Availability At June 30, 2018 , Station LLC’s borrowing availability under its Revolving Credit Facility, subject to continued compliance with the terms of the Credit Facility, was $743.9 million , which was net of $37.1 million in outstanding letters of credit and similar obligations. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company’s objective in using derivative instruments is to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps as a primary part of its cash flow hedging strategy. Under the Company’s interest rate swap agreements, it receives variable-rate payments in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company does not use derivative financial instruments for trading or speculative purposes. At June 30, 2018 , Station LLC had 20 outstanding interest rate swaps that were not designated in cash flow hedging relationships. The 20 interest rate swaps each have one -year terms with predetermined fixed pay rates that increase with each new term to more closely align with the one -month LIBOR forward curve as of the trade date of the interest rate swap. Of the 20 interest rate swaps, 12 cover an exposure period that began in July 2017 and will continue through July 2020 and had a combined notional amount of $1.0 billion at June 30, 2018 . These interest rate swaps were previously designated in cash flow hedging relationships as discussed in more detail below. The remaining eight interest rate swaps were originally entered into in June 2017, cover an exposure period that began in July 2017 and will continue through July 2021, and had a combined notional amount of $550.0 million at June 30, 2018 . The weighted-average fixed pay rates applicable to each of the one -year terms covered by Station LLC’s interest rate swaps are set forth below: One-year Term Ending in July Percentage 2018 1.18 % 2019 1.46 % 2020 1.73 % 2021 1.94 % Station LLC has not posted any collateral related to its interest rate swap agreements; however, Station LLC’s obligations under the interest rate swap agreements are subject to the security and guarantee arrangements applicable to the Credit Facility. The interest rate swap agreements contain a cross-default provision under which Station LLC could be declared in default on its obligation under such agreements if certain conditions of default exist on the Credit Facility. At June 30, 2018 , the termination value of Station LLC’s interest rate swaps, including accrued interest, was a net asset of $41.6 million . In June 2017, the Company dedesignated the hedge accounting relationships of Station LLC’s interest rate swaps that were previously designated and accounted for as cash flow hedges of forecasted interest payments. As such, the gain or loss on the effective portion of changes in their fair values was recorded as a component of other comprehensive (loss) income until the interest payments being hedged were recorded as interest expense, at which time the amounts in accumulated other comprehensive income were reclassified as an adjustment to interest expense. The Company recognized the gain or loss on any ineffective portion of the derivatives’ change in fair value in the period in which the change occurred as a component of Change in fair value of derivative instruments in the Condensed Consolidated Statements of Operations . At June 30, 2018 , $5.7 million of cumulative deferred gains previously recognized in accumulated other comprehensive income will be amortized as a reduction of interest expense through July 2020 as the hedged interest payments continue to occur. Of this amount, approximately $3.0 million of deferred net gains is expected to be reclassified into earnings during the next twelve months. As a result of and subsequent to (i) the Company’s election not to apply hedge accounting for Station LLC’s interest rate swaps and (ii) the June 2017 dedesignation of Station LLC’s then-outstanding interest rate swaps, the changes in fair value of all of Station LLC’s derivative instruments are reflected in Change in fair value of derivative instruments in the Condensed Consolidated Statements of Operations in the period in which the change occurs. As such, the amount of interest expense reported for the period subsequent to the dedesignation does not reflect a fixed rate as it previously did under hedge accounting for that portion of the debt hedged. However, the economics are unchanged and the Company continues to meet its risk management objective and achieve fixed cash flows attributable to interest payments on the debt principal being hedged by its interest rate swaps. At June 30, 2018 , Station LLC’s interest rate swaps effectively converted $1.5 billion of Station LLC’s variable interest rate debt (based on one -month LIBOR that is subject to a minimum of 0.75% ) to a fixed rate of 3.75% . The fair values of Station LLC’s interest rate swaps, exclusive of accrued interest, as well as their classification on the Condensed Consolidated Balance Sheets, are presented below (amounts in thousands): June 30, December 31, 2017 Interest Rate Swaps Not Designated in Hedge Accounting Relationships Prepaid expenses and other current assets $ 290 $ 3,620 Other assets, net 40,313 18,383 Information about pretax gains on derivative financial instruments that were not designated in hedge accounting relationships is presented below (amounts in thousands): Derivatives Not Designated in Hedge Accounting Relationships Location of Gain on Derivatives Recognized in Income Amount of Gain on Derivatives Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Interest rate swaps Change in fair value of derivative instruments $ 7,321 $ 3,367 $ 23,124 $ 3,367 Information about pretax gains and losses on derivative financial instruments that were designated in cash flow hedging relationships is presented below (amounts in thousands): Derivatives Designated in Cash Flow Hedging Relationships Amount of Loss on Derivatives Recognized in Other Comprehensive (Loss) Income (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Loss on Derivatives Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Loss on Derivatives Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2018 2017 2018 2017 2018 2017 Interest rate swaps $ — $ (3,268 ) Interest expense, net $ 689 $ (986 ) Change in fair value of derivative instruments $ — $ (37 ) Derivatives Designated in Cash Flow Hedging Relationships Amount of Loss on Derivatives Recognized in Other Comprehensive (Loss) Income (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain on Derivatives Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain on Derivatives Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 2018 2017 Interest rate swaps $ — $ (1,875 ) Interest expense, net $ 1,387 $ (2,521 ) Change in fair value of derivative instruments $ — $ 2 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets Measured at Fair Value on a Recurring Basis Information about the Company’s financial assets measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall, is presented below (amounts in thousands): Fair Value Measurement at Reporting Date Using Balance at June 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Interest rate swaps $ 40,603 $ — $ 40,603 $ — Fair Value Measurement at Reporting Date Using Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Interest rate swaps $ 22,003 $ — $ 22,003 $ — The fair values of Station LLC’s interest rate swaps were determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the interest rate swaps. This analysis reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs, including forward interest rate curves. Station LLC incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the counterparty’s nonperformance risk in the fair value measurement. The Company had no financial liabilities measured at fair value on a recurring basis as of June 30, 2018 or December 31, 2017 . Fair Value of Long-term Debt The estimated fair value of Station LLC’s long-term debt compared with its carrying amount is presented below (amounts in millions): June 30, December 31, 2017 Aggregate fair value $ 2,557 $ 2,677 Aggregate carrying amount 2,611 2,618 The estimated fair value of Station LLC’s long-term debt is based on quoted market prices from various banks for similar instruments, which is considered a Level 2 input under the fair value measurement hierarchy. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The changes in stockholders’ equity and noncontrolling interest for the six months ended June 30, 2018 were as follows (amounts in thousands): Red Rock Resorts, Inc. Stockholders’ Equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Noncontrolling interest Total stockholders’ equity Class A Class B Shares Amount Shares Amount Balances, 68,898 $ 689 47,264 $ 1 $ 349,430 $ 26,138 $ 2,473 $ 252,981 $ 631,712 Net income — — — — — 133,915 — 47,317 181,232 Other comprehensive loss, net of tax — — — — — — (651 ) (559 ) (1,210 ) Share-based compensation — — — — 5,629 — — — 5,629 Distributions — — — — — — — (10,479 ) (10,479 ) Dividends — — — — — (13,888 ) — — (13,888 ) Issuance of restricted stock awards, net of forfeitures 137 1 — — (1 ) — — — — Repurchase of Class A common stock (10 ) — — — (307 ) — — — (307 ) Stock option exercises 222 2 — — 4,342 — — — 4,344 Exchanges of noncontrolling interests for Class A common stock 380 4 (380 ) — 2,149 — 21 (2,174 ) — Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests for Class A common stock — — — — (2,528 ) — — — (2,528 ) Deferred tax assets resulting from exchanges of noncontrolling interests for Class A common stock — — — — 2,718 — — — 2,718 Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco — — — — (3,363 ) — 9 3,354 — Balances, 69,627 $ 696 46,884 $ 1 $ 358,069 $ 146,165 $ 1,852 $ 290,440 $ 797,223 At June 30, 2018 , noncontrolling interest primarily represented the 40.2% ownership interest in Station Holdco not held by Red Rock. On July 31, 2018 , the Company announced that it would pay a dividend of $0.10 per share of Class A common stock to holders of record as of September 14, 2018 to be paid on September 28, 2018 . Prior to the payment of the dividend, Station Holdco will declare a distribution to all LLC Unit holders, including the Company, of $0.10 per unit, a portion of which will be paid to its noncontrolling interest holders. Changes in Accumulated Other Comprehensive Income The following table presents changes in accumulated other comprehensive income , net of tax and noncontrolling interest, by component for the six months ended June 30, 2018 (amounts in thousands): Accumulated Other Comprehensive Income Unrealized gain on interest rate swaps Unrecognized pension liability Total Balances, December 31, 2017 $ 2,510 $ (37 ) $ 2,473 Amounts reclassified from accumulated other comprehensive income (loss) into income (a) (651 ) — (651 ) Net current-period other comprehensive loss (651 ) — (651 ) Exchanges of noncontrolling interests for Class A common stock 21 — 21 Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco 9 — 9 Balances, June 30, 2018 $ 1,889 $ (37 ) $ 1,852 ____________________________________ (a) Net of $0.2 million tax benefit . Net Income (Loss) Attributable to Red Rock Resorts, Inc. and Transfers from (to) Noncontrolling Interests The table below presents the effect on Red Rock Resorts, Inc. stockholders’ equity from net income (loss) and transfers from (to) noncontrolling interests (amounts in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income (loss) attributable to Red Rock Resorts, Inc. $ 82,735 $ (25,734 ) $ 133,915 $ (5,834 ) Transfers from (to) noncontrolling interests: Exchanges of noncontrolling interests for Class A common stock 283 11,400 2,174 11,400 Acquisition of subsidiary noncontrolling interests — — — 2,850 Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco (2,259 ) (2,388 ) (3,354 ) (2,925 ) Net transfers (to) from noncontrolling interests (1,976 ) 9,012 (1,180 ) 11,325 Change from net income (loss) attributable to Red Rock Resorts, Inc. and net transfers (to) from noncontrolling interests $ 80,759 $ (16,722 ) $ 132,735 $ 5,491 |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-based Compensation The Company maintains an equity incentive plan which is designed to attract, retain and motivate employees and to align the interests of those individuals with the interests of the Company. A total of 11,585,479 shares of Class A common stock is reserved for issuance under the plan, of which approximately 3.2 million shares were available for issuance at June 30, 2018 . The following table presents information about share-based compensation awards under the equity incentive plan: Restricted Class A Common Stock Stock Options Shares Weighted-average grant date fair value Shares Weighted-average exercise price Outstanding at January 1, 2018 308,310 $ 21.60 4,248,465 $ 21.29 Activity during the period: Granted 158,912 32.75 2,113,479 32.75 Vested/exercised (53,258 ) 22.08 (221,538 ) 19.61 Forfeited (22,010 ) 21.04 (413,159 ) 22.88 Outstanding at June 30, 2018 391,954 $ 26.09 5,727,247 $ 25.47 The Company recognized share-based compensation expense of $3.1 million and $5.6 million , respectively, for the three and six months ended June 30, 2018 and $2.3 million and $3.7 million , respectively, for the three and six months ended June 30, 2017 . At June 30, 2018 , unrecognized share-based compensation cost was $40.7 million , which is expected to be recognized over a weighted-average period of 3.1 years. |
Write-downs and Other Charges,
Write-downs and Other Charges, Net | 6 Months Ended |
Jun. 30, 2018 | |
Losses on Asset Disposals and Other Nonroutine Transactions [Abstract] | |
Write-downs and Other Charges, Net | Write-downs and Other Charges, Net Write-downs and other charges, net include various charges related to non-routine transactions, such as development and redevelopment expenses, preopening, lease termination, and severance, as well as net losses on asset disposals. For the three and six months ended June 30, 2018 , write-downs and other charges, net were $10.8 million and $14.6 million , respectively. These amounts included $9.0 million and $11.6 million , respectively, related to the redevelopment of Palms Casino Resort ("Palms"), including the brand repositioning campaign, costs associated with the grand opening of the first phase of the project in May 2018, and preopening expense related to new restaurants, nightclubs, bars and other amenities. For the three and six months ended June 30, 2017 , write-downs and other charges, net were $9.6 million and $10.7 million , respectively. These amounts included $3.5 million in tenant lease termination expenses, as well as losses on fixed asset disposals of $5.5 million and $5.6 million , respectively, for the three and six months ended June 30, 2017 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Red Rock is taxed as a corporation and pays corporate federal and state taxes on income allocated to it from Station Holdco based upon Red Rock’s economic interest held in Station Holdco. Station Holdco is treated as a pass-through partnership for income tax reporting purposes. Station Holdco’s members, including the Company, are liable for federal, state and local income taxes based on their share of Station Holdco’s pass-through taxable income. The Tax Cuts and Jobs Act (the “Act”) was enacted in December 2017. The Act reduced the U.S. federal corporate rate from 35% to 21% . At December 31, 2017 , the Company was able to reasonably estimate the effects of the Act and recorded provisional adjustments associated with the effects on existing deferred tax balances. The Company will continue to make and refine its calculations as additional analysis is completed and further guidance is provided. The provisional amount recorded related to the remeasurement of its deferred tax balance was $85.3 million at December 31, 2017 and remains so at June 30, 2018 . The Company’s tax provision or benefit from income taxes for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company updates the estimate of the annual effective tax rate and makes necessary cumulative adjustments to the total tax provision or benefit. The current taxes are estimated for the period and the balance sheet is adjusted to reflect such taxes currently payable or receivable. The remaining tax provision or benefit is recorded as deferred taxes. The Company’s effective tax rate for the three and six months ended June 30, 2018 was 13.03% and 12.42% , respectively, including discrete items, as compared to 19.06% and 19.27% for the three and six months ended June 30, 2017 . The Company’s effective tax rate is less than the statutory rate of 21% primarily because its effective tax rate includes a rate benefit attributable to the fact that Station Holdco operates as a limited liability company which is not subject to federal income tax. Accordingly, the Company is not liable for income taxes on the portion of Station Holdco’s earnings attributable to noncontrolling interests. Station Holdco operates in Nevada and California and had taxable operations in Michigan until February 2018. Nevada does not impose a state income tax and the Company’s activities in California and Michigan are minimal; as a result, state income taxes do not have a significant impact on the Company’s effective rate. In addition, the Company recognized income related to transactions pursuant to which the tax receivable agreement (“TRA”) liabilities owed to pre-IPO owners of Station Holdco were assigned to the Company; the effective tax rate was impacted by a net discrete $19.4 million write-down to the deferred tax asset. As a result of the IPO and certain reorganization transactions, the Company recorded a net deferred tax asset resulting from the outside basis difference of its interest in Station Holdco. The Company also recorded a deferred tax asset for its liability related to payments to be made pursuant to the TRA representing 85% of the tax savings the Company expects to realize from the amortization deductions associated with the step up in the basis of depreciable assets under Section 754 of the Internal Revenue Code. This deferred tax asset will be recovered as cash payments are made to the TRA participants. The Company determined that the deferred tax asset related to the LLC Units issued in the IPO and reorganization transactions is not expected to be realized unless the Company disposes of its investment in Station Holdco. As such, the Company established a valuation allowance against this portion of its deferred tax asset. The Company recognizes changes to the valuation allowance through the provision for income tax or other comprehensive income, as applicable, and at June 30, 2018 and December 31, 2017 , the valuation allowance was $50.9 million and $57.3 million , respectively. Tax Receivable Agreement In connection with the IPO, the Company entered into the TRA with certain pre-IPO owners of Station Holdco. In the event that such parties exchange any or all of their LLC Units for Class A common stock, the TRA requires the Company to make payments to such holders for 85% of the tax benefits realized by the Company as a result of such exchange. The Company expects to realize these tax benefits based on current projections of taxable income. The annual tax benefits are computed by calculating the income taxes due, including such tax benefits, and the income taxes due without such benefits. At June 30, 2018 and December 31, 2017 , the Company’s liability under the TRA was $25.2 million and $141.9 million , respectively. Exchanges of LLC Units and Class B common shares resulted in increases in amounts payable under the TRA liability of $0.3 million and $2.5 million for the three and six months ended June 30, 2018 , respectively, as well as net increases in deferred tax assets of $0.4 million and $2.7 million , respectively, all of which were recorded through stockholders’ equity. During the six months ended June 30, 2018 , the Company paid a total of $28.9 million to two pre-IPO owners of Station Holdco in exchange for which the owners assigned to the Company all of their rights under the TRA. As a result, the Company’s liability under the TRA was reduced by $119.2 million , and the Company recognized nontaxable income of $90.4 million , which is presented in Tax receivable agreement liability adjustment in the Condensed Consolidated Statements of Operations for the six months ended June 30, 2018 . The timing and amount of aggregate payments due under the TRA may vary based on a number of factors, including the amount and timing of the taxable income the Company generates each year and the tax rate then applicable. The payment obligations under the TRA are Red Rock’s obligations and are not obligations of Station Holdco or Station LLC. Payments are generally due within a specified period of time following the filing of the Company’s annual tax return and interest on such payments will accrue from the original due date (without extensions) of the income tax return until the date paid. Payments not made within the required period after the filing of the income tax return generally accrue interest at a rate of LIBOR plus 5.00% . The TRA will remain in effect until all such tax benefits have been utilized or expired, unless the Company exercises its right to terminate the TRA. The TRA will also terminate if the Company breaches its obligations under the TRA or upon certain mergers, asset sales or other forms of business combinations, or other changes of control. If the Company exercises its right to terminate the TRA, or if the TRA is terminated early in accordance with its terms, Red Rock’s payment obligations would be accelerated based upon certain assumptions, including the assumption that the Company would have sufficient future taxable income to utilize such tax benefits. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Under the TRA described in Note 12 , the Company is required to make payments to certain pre-IPO owners of Station Holdco for 85% of the tax benefits realized by the Company as a result of certain transactions with the pre-IPO owners. At June 30, 2018 and December 31, 2017 , $9.2 million of the Company’s liability under the TRA was payable to entities related to Frank J. Fertitta III and Lorenzo J. Fertitta. In addition, at June 30, 2018 and December 31, 2017 , $11.5 million and $9.0 million , respectively, was payable to current and former executives of the Company or members of their respective family group. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Per Share Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to Red Rock by the weighted-average number of shares of Class A common stock outstanding during the period. The calculation of diluted earnings per share gives effect to all potentially dilutive shares, including shares issuable pursuant to outstanding stock options and nonvested restricted shares of Class A common stock, based on the application of the treasury stock method, and outstanding Class B common stock that is exchangeable, along with an equal number of LLC Units, for Class A common stock, based on the application of the if-converted method. Dilutive shares included in the calculation of diluted earnings per share for the three and six months ended June 30, 2018 represent outstanding shares of Class B common stock, nonvested restricted shares of Class A common stock and outstanding stock options. For the three and six months ended June 30, 2017 , the Company incurred a net loss. As a result, all potentially dilutive securities were excluded from the calculation of diluted loss per share because their inclusion would have been antidilutive. A reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings (loss) per share is presented below (amounts in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income (loss) $ 99,102 $ (50,171 ) $ 181,232 $ (4,752 ) Less: net (income) loss attributable to noncontrolling interests (16,367 ) 24,437 (47,317 ) (1,082 ) Net income (loss) attributable to Red Rock, basic $ 82,735 $ (25,734 ) $ 133,915 $ (5,834 ) Net income (loss) attributable to Red Rock, basic $ 82,735 $ (25,734 ) $ 133,915 $ (5,834 ) Effect of dilutive securities 12,852 — 37,159 — Net income (loss) attributable to Red Rock, diluted $ 95,587 $ (25,734 ) $ 171,074 $ (5,834 ) Three Months Ended Six Months Ended 2018 2017 2018 2017 Weighted-average shares of Class A common stock outstanding, basic 69,124 67,311 68,962 66,506 Effect of dilutive securities 47,878 — 48,011 — Weighted-average shares of Class A common stock outstanding, diluted 117,002 67,311 116,973 66,506 The calculation of diluted earnings (loss) per share of Class A common stock excluded the following potentially dilutive shares that were outstanding at the end of the period because their inclusion would have been antidilutive (amounts in thousands): As of June 30, 2018 2017 Shares issuable in exchange for Class B common stock and LLC Units — 47,954 Shares issuable upon exercise of stock options 2,106 4,369 Shares issuable upon vesting of restricted stock 64 293 Shares of Class B common stock are not entitled to share in the earnings of the Company and are not participating securities. Accordingly, earnings per share of Class B common stock under the two-class method has not been presented. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company and its subsidiaries are defendants in various lawsuits relating to routine matters incidental to their business. No assurance can be provided as to the outcome of any legal matters and litigation inherently involves significant costs. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company views each of its Las Vegas casino properties and each of its Native American management arrangements as individual operating segments. The Company aggregates all of its Las Vegas operating segments into one reportable segment because all of its Las Vegas properties offer similar products, cater to the same customer base, have the same regulatory and tax structure, share the same marketing techniques, are directed by a centralized management structure and have similar economic characteristics. The Company also aggregates its Native American management arrangements into one reportable segment. The Company utilizes Adjusted EBITDA as its primary performance measure. The Company’s segment information and a reconciliation of net income (loss) to Adjusted EBITDA are presented below (amounts in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net revenues Las Vegas operations $ 393,682 $ 378,142 $ 788,852 $ 772,386 Native American management 21,020 30,543 45,525 60,648 Reportable segment net revenues 414,702 408,685 834,377 833,034 Corporate and other 1,486 1,458 2,850 2,847 Net revenues $ 416,188 $ 410,143 $ 837,227 $ 835,881 Net income (loss) $ 99,102 $ (50,171 ) $ 181,232 $ (4,752 ) Adjustments Depreciation and amortization 45,992 46,807 89,156 92,060 Share-based compensation 3,103 2,326 5,557 3,738 Write-downs and other charges, net 10,786 9,638 14,631 10,692 Tax receivable agreement liability adjustment (73,502 ) (444 ) (90,375 ) (444 ) Related party lease termination — 98,393 — 98,393 Interest expense, net 31,598 33,853 62,709 68,797 Loss on extinguishment/modific ation of debt, net — 975 — 2,994 Change in fair value of derivative instruments (7,321 ) (3,330 ) (23,124 ) (3,369 ) Adjusted EBITDA attributable to MPM noncontrolling interest — (6,418 ) (962 ) (11,056 ) Provision (benefit) for income tax 14,845 (11,813 ) 25,701 (1,134 ) Other 41 86 196 172 Adjusted EBITDA (a) $ 124,644 $ 119,902 $ 264,721 $ 256,091 Adjusted EBITDA Las Vegas operations $ 112,589 $ 105,120 $ 238,466 $ 225,977 Native American management 19,790 22,695 41,884 46,012 Reportable segment Adjusted EBITDA 132,379 127,815 280,350 271,989 Corporate and other (7,735 ) (7,913 ) (15,629 ) (15,898 ) Adjusted EBITDA $ 124,644 $ 119,902 $ 264,721 $ 256,091 ____________________________________ (a) Adjusted EBITDA includes net income (loss) plus depreciation and amortization, share-based compensation, write-downs and other charges, net, including Palms redevelopment and preopening expenses, tax receivable agreement liability adjustment, related party lease termination, interest expense, net, loss on extinguishment/modification of debt, net, change in fair value of derivative instruments, provision (benefit) for income tax and other, and excludes Adjusted EBITDA attributable to the noncontrolling interests of MPM. |
Organization, Basis of Presen24
Organization, Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the results for the interim periods have been made. The interim results reflected in these condensed consolidated financial statements are not necessarily indicative of results to be expected for the full fiscal year. These financial statements should be read in conjunction with the audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Certain amounts in the condensed consolidated financial statements for the prior year have been reclassified to be consistent with the current year presentation. |
Principles of Consolidation | Principles of Consolidation Station Holdco and Station LLC are variable interest entities (“VIEs”), of which the Company is the primary beneficiary. Accordingly, the Company consolidates the financial position and results of operations of Station LLC and its consolidated subsidiaries and Station Holdco, and presents the interest in Station Holdco not owned by Red Rock within noncontrolling interest in the condensed consolidated financial statements. All intercompany accounts and transactions have been eliminated. The amounts shown in the accompanying condensed consolidated financial statements also include the accounts of MPM Enterprises, LLC (“MPM”), which is a 50% owned, consolidated VIE that managed Gun Lake Casino through February 2018. The Company is the primary beneficiary of MPM. As such, it consolidates MPM and the financial position and results of operations attributable to third party holdings of MPM are reported within noncontrolling interest in the condensed consolidated financial statements. The net assets of MPM reflected in the Condensed Consolidated Balance Sheet at December 31, 2017 totaled $2.1 million . The Gun Lake Casino management agreement expired on February 6, 2018. The Company has investments in three 50% owned smaller casino properties which are joint ventures accounted for using the equity method. The carrying amount of the Company’s investment in one of the smaller casino properties has been reduced below zero and is presented as a deficit investment balance on the Condensed Consolidated Balance Sheets. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported and disclosed. Actual results could differ from those estimates. |
Significant Accounting Policies | Significant Accounting Policies A description of the Company’s significant accounting policies is included in the audited financial statements within its Annual Report on Form 10-K for the year ended December 31, 2017 . The Company updated its revenue recognition accounting policy as described in Note 2 in conjunction with the adoption of the new accounting standard for revenue recognition. |
New Accounting Pronouncements | Recently Issued and Adopted Accounting Standards In May 2017, the Financial Accounting Standards Board (“FASB”) issued accounting guidance that amends the scope of modification accounting for share-based payment arrangements. The amended guidance clarifies which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting. The Company adopted this guidance in the first quarter of 2018. The adoption did not have an impact on the Company’s financial position or results of operations. In March 2017, the FASB issued amended accounting guidance on the presentation of net periodic pension and postretirement cost. The amendment requires that the service cost component must be separated from the other components and classified as compensation expense in the same income statement line item as payroll costs for the employees who are receiving the retirement benefit. Further, only the service cost component is eligible for capitalization in inventory or other internally constructed assets. Other cost components are required to be reported below the subtotal for operating results, and their classification is required to be disclosed. The Company adopted this guidance in the first quarter of 2018. The Company’s defined benefit pension plan has been curtailed since 2009 and as a result, no service cost is being incurred. Accordingly, upon adoption of the amended guidance, the Company reclassified the expense associated with the defined benefit pension plan to other expense for all periods presented, and the adoption did not have an impact on net income. In November 2016, the FASB issued amended accounting guidance on the presentation of restricted cash in the statement of cash flows. This amendment requires that a statement of cash flows explain the change during the reporting period in the total of cash, cash equivalents, and restricted cash or restricted cash equivalents. The Company adopted this guidance in the first quarter of 2018 using the retrospective transition method, as required by the new standard. The adoption did not have an impact on the Company’s financial position or results of operations. In August 2016, the FASB issued amended accounting guidance intended to reduce diversity in practice in how cash receipts and cash payments are presented and classified in the statement of cash flows. The amendment addresses specific cash flow issues including the presentation and classification of debt prepayment or debt extinguishment costs and distributions received from equity method investees. The amended guidance also addresses the presentation and classification of separately identifiable cash flows and the application of the predominance principle. The Company adopted this guidance in the first quarter of 2018 using the retrospective transition method, as required by the new standard. The adoption did not have an impact on the Company’s statement of cash flows. In February 2016, the FASB issued a new accounting standard that changes the accounting for leases and requires expanded disclosures about leasing activities. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability, measured on a discounted basis, at the commencement date for leases with terms greater than twelve months. Lessor accounting will remain largely unchanged, other than certain targeted improvements intended to align lessor accounting with the lessee accounting model and with the new revenue recognition guidance discussed in Note 2 . An optional transition approach is permitted, allowing companies to forgo comparative reporting and instead adopt the guidance on a prospective basis. The amended guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and early adoption is permitted. The Company will adopt this standard as of the first quarter of 2019 using the optional transition approach. The Company is currently evaluating the financial statement impacts of adopting the amended guidance, which will include recognizing lease liabilities and related right-of-use assets on the balance sheet for operating leases as of the date of adoption. In May 2014, the FASB issued a new accounting standard for revenue recognition which requires entities to recognize revenue when it transfers 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. The Company adopted this guidance in the first quarter of 2018 and elected to apply the full retrospective adoption method. Under the new standard, the historical presentation of gross revenues for complimentary goods and services provided to guests with a corresponding offsetting amount included in promotional allowances has been eliminated. Promotional allowances are recorded primarily as reductions to casino revenue based on the standalone selling price of the complimentary goods and services provided. The adoption of the new standard also eliminated the historical practice of reclassifying the total cost incurred associated with complimentaries from the expense line of the department fulfilling the complimentary to the expense line of the department that granted the complimentary to the guest. Under the new standard, revenues and expenses associated with providing complimentaries are classified based on the goods and services provided. When guests earn points under the Company’s player rewards program (the “Rewards Program”), the Company recognizes a liability for the redemption value of such points, which are considered future performance obligations under the new standard. The recognition of the Rewards Program point liability primarily reduces casino revenue. Previously, the Company recorded a liability for the estimated incremental cost of providing complimentary services earned under the Rewards Program. Additionally, amounts paid for wide area progressive operator fees and mandatory service charges that were previously recorded net in revenue are recorded gross, resulting in an increase in revenue with a corresponding increase in expense. See Note 2 for additional information. Adoption of the new standard using the full retrospective method required the Company to apply the new guidance to each prior reporting period presented. The adoption did not have a significant impact on net income for the periods presented. The following tables present the impact of adoption of the new standard to previously reported selected financial statement information (in thousands, except per share data): Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Gross revenues $ 432,715 $ (22,572 ) $ 410,143 $ 878,613 $ (42,732 ) $ 835,881 Promotional allowances (29,222 ) 29,222 — (57,388 ) 57,388 — Net revenues 403,493 6,650 410,143 821,225 14,656 835,881 Net loss (50,494 ) 323 (50,171 ) (5,280 ) 528 (4,752 ) Net loss attributable to Red Rock Resorts, Inc. (25,920 ) 186 (25,734 ) (6,137 ) 303 (5,834 ) Loss per share of Class A common stock, basic and diluted (0.39 ) 0.01 (0.38 ) (0.09 ) — (0.09 ) December 31, 2017 As Reported Adjustments As Adjusted Deferred tax asset, net $ 132,220 $ 511 $ 132,731 Other accrued liabilities 176,813 6,090 182,903 Total stockholders’ equity 637,291 (5,579 ) 631,712 December 31, 2016 As Reported Adjustments As Adjusted Total stockholders’ equity $ 633,352 $ (5,754 ) $ 627,598 The Company’s historical net cash flows from operating, investing and financing activities were not impacted by the adoption of the new standard. |
Revenue (Policies)
Revenue (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Casino Revenue Casino revenue includes gaming activities such as slot, table game and sports wagering. The transaction price for a gaming wagering contract is the difference between gaming wins and losses, not the total amount wagered. The transaction price is reduced for consideration payable to a guest, such as cash sales incentives and the change in progressive jackpot liabilities. Gaming contracts are typically completed daily based on the outcome of the wagering transaction and include a distinct performance obligation to provide gaming activities. Guests may receive discretionary incentives for complimentary food, beverage, rooms, entertainment and merchandise to encourage additional gaming, or may earn loyalty points based on their gaming activity. The Company allocates the transaction price to each performance obligation in the gaming wagering contract. The amount allocated to loyalty points earned is based on an estimate of the standalone selling price of the loyalty points, which is determined by the redemption value less an estimate for points not expected to be redeemed. The amount allocated to discretionary complimentaries is the standalone selling price of the underlying goods or services, which is determined using the retail price at which those goods or services would be sold separately in similar transactions. The remaining amount of the transaction price is allocated to wagering activity using the residual approach as the standalone selling price for gaming wagers is highly variable and no set established price exists for gaming wagers. Amounts allocated to wagering are recognized as casino revenue when the result of the wager is determined, and amounts allocated to loyalty points and discretionary complimentaries are recognized as revenue when the goods or services are provided. Non-gaming Revenue Non-gaming revenues include sales of food, beverage, hotel rooms and other amenities such as retail merchandise, bowling, spa services and entertainment. The transaction price is the net amount collected from the guest and includes a distinct performance obligation to provide such goods or services. Non-gaming revenues are recognized when the goods or services are provided to the guest. Guests may also earn loyalty points from non-gaming purchases or receive discretionary complimentaries that require the transaction price to be allocated to each performance obligation on a relative standalone selling price basis. Non-gaming revenues also include the portion of the transaction price from gaming or non-gaming contracts allocated to discretionary complimentaries and the value of loyalty points redeemed for food, beverage, room and other amenities. Discretionary complimentaries are classified in the departmental revenue category fulfilling the complimentary with a corresponding reduction in the departmental revenues that provided the complimentary, which is primarily casino revenue. Included in non-gaming revenues are discretionary complimentaries and loyalty point redemptions of $49.8 million and $45.2 million for the three months ended June 30, 2018 and 2017 , respectively, and $98.6 million and $90.5 million for the six months ended June 30, 2018 and 2017 , respectively. Management Fee Revenue Management fee revenue primarily represents fees earned from the Company’s management agreements with Native American tribes. The transaction price for management contracts is the management fee to which the Company is entitled for its management services. The management fee represents variable consideration as it is based on a percentage of net income of the managed property, as defined in the management agreements. The management services are a single performance obligation to provide a series of distinct services over the term of the management agreement. The Company allocates and recognizes the management fee monthly as it is earned because there is a consistent measure throughout the contract period that reflects the value to the Native American tribe each month. Rewards Program The Rewards Program point liability represents deferred gaming and non-gaming revenue at the redemption value of loyalty points earned under the Rewards Program that management ultimately believes will be redeemed. The loyalty points earned represent future performance obligations of the Company. Guests are able to accumulate loyalty points over time that they may redeem at their discretion under the terms of the Rewards Program. Loyalty points may be redeemed for cash, free slot play, food, beverage, rooms, entertainment and merchandise. When points are redeemed for cash, the point liability is reduced for the amount of cash paid out. When points are redeemed for free slot play, food, beverage, rooms, entertainment and merchandise, revenues are recognized when the goods or services are provided, and such revenues are classified based on the type of goods or services provided with a corresponding reduction to the point liability. The Company’s performance obligation related to its loyalty point liability is generally completed within one year, as a guest’s loyalty point balance is forfeited after six months of inactivity for a local guest and after thirteen months for an out-of-town guest, as defined in the Rewards Program. The Company’s loyalty point liability was $20.6 million and $20.3 million at June 30, 2018 and December 31, 2017 , respectively. Loyalty points are generally earned and redeemed continually over time. As a result, the loyalty point liability balance remains relatively constant. The Company’s revenue contracts with customers consist of gaming wagers, sales of food, beverage, hotel rooms and other amenities, and agreements to provide management services. Revenues are recognized when control of the promised goods or services is transferred to the guest, in an amount that reflects the consideration that the Company expects to be entitled to receive in exchange for those goods or services, referred to as the transaction price. Other revenues also include rental income from tenants, which is recognized over the lease term, and contingent rental income, which is recognized when the right to receive such rental income is established according to the lease agreements. Revenue is recognized net of cash sales incentives and discounts and excludes sales and other taxes collected from guests on behalf of governmental authorities. The Company applies a practical expedient and accounts for its gaming and non-gaming contracts on a portfolio basis. This is because individual customer contracts have similar characteristics, and the Company reasonably expects the effects on the financial statements of applying its revenue recognition policy to the portfolio would not differ materially from applying its policy to the individual contracts. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Standards (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following tables present the impact of adoption of the new standard to previously reported selected financial statement information (in thousands, except per share data): Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Gross revenues $ 432,715 $ (22,572 ) $ 410,143 $ 878,613 $ (42,732 ) $ 835,881 Promotional allowances (29,222 ) 29,222 — (57,388 ) 57,388 — Net revenues 403,493 6,650 410,143 821,225 14,656 835,881 Net loss (50,494 ) 323 (50,171 ) (5,280 ) 528 (4,752 ) Net loss attributable to Red Rock Resorts, Inc. (25,920 ) 186 (25,734 ) (6,137 ) 303 (5,834 ) Loss per share of Class A common stock, basic and diluted (0.39 ) 0.01 (0.38 ) (0.09 ) — (0.09 ) December 31, 2017 As Reported Adjustments As Adjusted Deferred tax asset, net $ 132,220 $ 511 $ 132,731 Other accrued liabilities 176,813 6,090 182,903 Total stockholders’ equity 637,291 (5,579 ) 631,712 December 31, 2016 As Reported Adjustments As Adjusted Total stockholders’ equity $ 633,352 $ (5,754 ) $ 627,598 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disaggregation of Revenue [Abstract] | |
Disaggregation of Revenue | A summary of net revenues disaggregated by type of revenue and reportable segment is presented below (amounts in thousands). Refer to Note 16 for a discussion of the Company’s reportable segments. Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Las Vegas operations Native American management Corporate and other Total Las Vegas operations Native American management Corporate and other Total Casino $ 232,756 $ — $ — $ 232,756 $ 219,136 $ — $ — $ 219,136 Food and beverage 94,632 — — 94,632 91,596 — — 91,596 Room 42,719 — — 42,719 45,194 — — 45,194 Other (a) 23,431 — 1,486 24,917 22,083 — 1,458 23,541 Management fees 144 21,020 — 21,164 133 30,543 — 30,676 Net revenues $ 393,682 $ 21,020 $ 1,486 $ 416,188 $ 378,142 $ 30,543 $ 1,458 $ 410,143 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 Las Vegas operations Native American management Corporate and other Total Las Vegas operations Native American management Corporate and other Total Casino $ 469,003 $ — $ — $ 469,003 $ 442,672 $ — $ — $ 442,672 Food and beverage 185,560 — — 185,560 190,142 — — 190,142 Room 89,349 — — 89,349 95,954 — — 95,954 Other (a) 44,623 — 2,850 47,473 43,363 — 2,847 46,210 Management fees 317 45,525 — 45,842 255 60,648 — 60,903 Net revenues $ 788,852 $ 45,525 $ 2,850 $ 837,227 $ 772,386 $ 60,648 $ 2,847 $ 835,881 ____________________________________ (a) Other revenue included revenue from tenant leases of $6.2 million for the three months ended June 30, 2018 and 2017 , and $12.3 million and $12.1 million for the six months ended June 30, 2018 and 2017 , respectively. Revenue from tenant leases is accounted for under the lease accounting guidance and does not represent revenue recognized from contracts with customers. |
Noncontrolling Interest in St28
Noncontrolling Interest in Station Holdco (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Ownership | The ownership of the LLC Units is summarized as follows: June 30, 2018 December 31, 2017 Units Ownership % Units Ownership % Red Rock 69,626,748 59.8 % 68,897,563 59.3 % Noncontrolling interest holders 46,884,413 40.2 % 47,264,413 40.7 % Total 116,511,161 100.0 % 116,161,976 100.0 % |
Native American Development (Ta
Native American Development (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Development Disclosure [Abstract] | |
Schedule of Development and Management Agreements | The following table summarizes the Company’s evaluation at June 30, 2018 of each of the critical milestones necessary to complete the North Fork Project. As of June 30, 2018 Federally recognized as an Indian tribe by the Bureau of Indian Affairs (“BIA”) Yes Date of recognition Federal recognition was terminated in 1966 and restored in 1983. Tribe has possession of or access to usable land upon which the project is to be built The DOI accepted approximately 305 acres of land for the project into trust for the benefit of the Mono in February 2013. Status of obtaining regulatory and governmental approvals: Tribal-state compact A compact was negotiated and signed by the Governor of California and the Mono in August 2012. The California State Assembly and Senate passed Assembly Bill 277 (“AB 277”) which ratified the Compact in May 2013 and June 2013, respectively. Opponents of the North Fork Project qualified a referendum, “Proposition 48,” for a state-wide ballot challenging the legislature’s ratification of the Compact. In November 2014, Proposition 48 failed. The State took the position that the failure of Proposition 48 nullified the ratification of the Compact and, therefore, the Compact did not take effect under California law. In March 2015, the Mono filed suit against the State (see North Fork Rancheria of Mono Indians v. State of California) to obtain a compact with the State or procedures from the Secretary of the Interior under which Class III gaming may be conducted on the North Fork Site. In July 2016, the DOI issued Secretarial procedures (the “Secretarial Procedures”) pursuant to which the Mono may conduct Class III gaming on the North Fork Site. Approval of gaming compact by DOI The Compact was submitted to the DOI in July 2013. In October 2013, notice of the Compact taking effect was published in the Federal Register. The Secretarial Procedures supersede and replace the Compact. Record of decision regarding environmental impact published by BIA In November 2012, the record of decision for the Environmental Impact Statement for the North Fork Project was issued by the BIA. In December 2012, the Notice of Intent to take land into trust was published in the Federal Register. BIA accepting usable land into trust on behalf of the tribe The North Fork Site was accepted into trust in February 2013. Approval of management agreement by NIGC In December 2015, the Mono submitted a Second Amended and Restated Management Agreement, and certain related documents, to the NIGC. In July 2016, the Mono received a deficiency letter from the NIGC seeking additional information concerning the Second Amended and Restated Management Agreement. In March 2018, the Mono submitted the Management Agreement and certain related documents to the NIGC. In June 2018, the Mono received a deficiency letter from the NIGC seeking additional information concerning the Management Agreement. Approval of the Management Agreement by the NIGC is expected to occur following the Mono’s response to the deficiency letter. The Company believes the Management Agreement will be approved because the terms and conditions thereof are consistent with the provisions of the Indian Gaming Regulatory Act (“IGRA”). Gaming licenses: Type The North Fork Project will include the operation of Class II and Class III gaming, which are allowed pursuant to the terms of the Secretarial Procedures and IGRA, following approval of the Management Agreement by the NIGC. Number of gaming devices allowed The Secretarial Procedures allow for the operation of a maximum of 2,000 Class III slot machines at the facility during the first two years of operation and thereafter up to 2,500 Class III slot machines. There is no limit on the number of Class II gaming devices that the Mono can offer. Agreements with local authorities The Mono has entered into memoranda of understanding with the City of Madera, the County of Madera and the Madera Irrigation District under which the Mono agreed to pay one-time and recurring mitigation contributions, subject to certain contingencies. The memoranda of understanding with the City and County were amended in December 2016 to restructure the timing of certain payments due to delays in the development of the North Fork Project. |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Other accrued liabilities consisted of the following (amounts in thousands): June 30, December 31, 2017 Accrued gaming and related $ 53,975 $ 57,070 Accrued payroll and related 53,705 51,095 Construction payables and equipment purchase accruals 95,916 39,673 Advance deposits 14,534 13,914 Other 24,149 21,151 $ 242,279 $ 182,903 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following indebtedness of Station LLC (amounts in thousands): June 30, December 31, 2017 Term Loan B Facility, due June 8, 2023, interest at a margin above LIBOR or base rate (4.60% and 4.06% at June 30, 2018 and December 31, 2017, respectively), net of unamortized discount and deferred issuance costs of $48.6 million and $53.2 million at June 30, 2018 and December 31, 2017, respectively $ 1,780,066 $ 1,780,193 Term Loan A Facility, due June 8, 2022, interest at a margin above LIBOR or base rate (4.09% and 3.36% at June 30, 2018 and December 31, 2017, respectively), net of unamortized discount and deferred issuance costs of $4.6 million and $5.2 million at June 30, 2018 and December 31, 2017, respectively 257,653 263,860 $781 million Revolving Credit Facility, due June 8, 2022, interest at a margin above LIBOR or base rate — — 5.00% Senior Notes, due October 1, 2025, net of unamortized deferred issuance costs of $6.1 million and $6.4 million at June 30, 2018 and December 31, 2017, respectively 543,936 543,596 Other long-term debt, weighted-average interest of 3.96% and 3.95% at June 30, 2018 and December 31, 2017, respectively, maturity dates ranging from 2027 to 2037 28,998 30,173 Total long-term debt 2,610,653 2,617,822 Current portion of long-term debt (34,864 ) (30,094 ) Total long-term debt, net $ 2,575,789 $ 2,587,728 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Weighted-average Fixed Pay Rates [Table Text Block] | The weighted-average fixed pay rates applicable to each of the one -year terms covered by Station LLC’s interest rate swaps are set forth below: One-year Term Ending in July Percentage 2018 1.18 % 2019 1.46 % 2020 1.73 % 2021 1.94 % |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The fair values of Station LLC’s interest rate swaps, exclusive of accrued interest, as well as their classification on the Condensed Consolidated Balance Sheets, are presented below (amounts in thousands): June 30, December 31, 2017 Interest Rate Swaps Not Designated in Hedge Accounting Relationships Prepaid expenses and other current assets $ 290 $ 3,620 Other assets, net 40,313 18,383 |
Derivative Instruments, Gain (Loss) | Information about pretax gains on derivative financial instruments that were not designated in hedge accounting relationships is presented below (amounts in thousands): Derivatives Not Designated in Hedge Accounting Relationships Location of Gain on Derivatives Recognized in Income Amount of Gain on Derivatives Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Interest rate swaps Change in fair value of derivative instruments $ 7,321 $ 3,367 $ 23,124 $ 3,367 Information about pretax gains and losses on derivative financial instruments that were designated in cash flow hedging relationships is presented below (amounts in thousands): Derivatives Designated in Cash Flow Hedging Relationships Amount of Loss on Derivatives Recognized in Other Comprehensive (Loss) Income (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Loss on Derivatives Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Loss on Derivatives Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, 2018 2017 2018 2017 2018 2017 Interest rate swaps $ — $ (3,268 ) Interest expense, net $ 689 $ (986 ) Change in fair value of derivative instruments $ — $ (37 ) Derivatives Designated in Cash Flow Hedging Relationships Amount of Loss on Derivatives Recognized in Other Comprehensive (Loss) Income (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion) Location of Gain on Derivatives Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain on Derivatives Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 2018 2017 Interest rate swaps $ — $ (1,875 ) Interest expense, net $ 1,387 $ (2,521 ) Change in fair value of derivative instruments $ — $ 2 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets at Fair Value Recurring Basis and Fair Value Hierarchy | Information about the Company’s financial assets measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall, is presented below (amounts in thousands): Fair Value Measurement at Reporting Date Using Balance at June 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Interest rate swaps $ 40,603 $ — $ 40,603 $ — Fair Value Measurement at Reporting Date Using Balance at December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Interest rate swaps $ 22,003 $ — $ 22,003 $ — |
Schedule of Long-Term Debt, Carrying Values and Estimated Fair Values | The estimated fair value of Station LLC’s long-term debt compared with its carrying amount is presented below (amounts in millions): June 30, December 31, 2017 Aggregate fair value $ 2,557 $ 2,677 Aggregate carrying amount 2,611 2,618 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Changes in Equity and Noncontrolling Interest | The changes in stockholders’ equity and noncontrolling interest for the six months ended June 30, 2018 were as follows (amounts in thousands): Red Rock Resorts, Inc. Stockholders’ Equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Noncontrolling interest Total stockholders’ equity Class A Class B Shares Amount Shares Amount Balances, 68,898 $ 689 47,264 $ 1 $ 349,430 $ 26,138 $ 2,473 $ 252,981 $ 631,712 Net income — — — — — 133,915 — 47,317 181,232 Other comprehensive loss, net of tax — — — — — — (651 ) (559 ) (1,210 ) Share-based compensation — — — — 5,629 — — — 5,629 Distributions — — — — — — — (10,479 ) (10,479 ) Dividends — — — — — (13,888 ) — — (13,888 ) Issuance of restricted stock awards, net of forfeitures 137 1 — — (1 ) — — — — Repurchase of Class A common stock (10 ) — — — (307 ) — — — (307 ) Stock option exercises 222 2 — — 4,342 — — — 4,344 Exchanges of noncontrolling interests for Class A common stock 380 4 (380 ) — 2,149 — 21 (2,174 ) — Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests for Class A common stock — — — — (2,528 ) — — — (2,528 ) Deferred tax assets resulting from exchanges of noncontrolling interests for Class A common stock — — — — 2,718 — — — 2,718 Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco — — — — (3,363 ) — 9 3,354 — Balances, 69,627 $ 696 46,884 $ 1 $ 358,069 $ 146,165 $ 1,852 $ 290,440 $ 797,223 |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following table presents changes in accumulated other comprehensive income , net of tax and noncontrolling interest, by component for the six months ended June 30, 2018 (amounts in thousands): Accumulated Other Comprehensive Income Unrealized gain on interest rate swaps Unrecognized pension liability Total Balances, December 31, 2017 $ 2,510 $ (37 ) $ 2,473 Amounts reclassified from accumulated other comprehensive income (loss) into income (a) (651 ) — (651 ) Net current-period other comprehensive loss (651 ) — (651 ) Exchanges of noncontrolling interests for Class A common stock 21 — 21 Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco 9 — 9 Balances, June 30, 2018 $ 1,889 $ (37 ) $ 1,852 ____________________________________ (a) Net of $0.2 million tax benefit . |
Reconciliation of Net Income and Changes to Noncontrolling Interest | The table below presents the effect on Red Rock Resorts, Inc. stockholders’ equity from net income (loss) and transfers from (to) noncontrolling interests (amounts in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income (loss) attributable to Red Rock Resorts, Inc. $ 82,735 $ (25,734 ) $ 133,915 $ (5,834 ) Transfers from (to) noncontrolling interests: Exchanges of noncontrolling interests for Class A common stock 283 11,400 2,174 11,400 Acquisition of subsidiary noncontrolling interests — — — 2,850 Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco (2,259 ) (2,388 ) (3,354 ) (2,925 ) Net transfers (to) from noncontrolling interests (1,976 ) 9,012 (1,180 ) 11,325 Change from net income (loss) attributable to Red Rock Resorts, Inc. and net transfers (to) from noncontrolling interests $ 80,759 $ (16,722 ) $ 132,735 $ 5,491 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table presents information about share-based compensation awards under the equity incentive plan: Restricted Class A Common Stock Stock Options Shares Weighted-average grant date fair value Shares Weighted-average exercise price Outstanding at January 1, 2018 308,310 $ 21.60 4,248,465 $ 21.29 Activity during the period: Granted 158,912 32.75 2,113,479 32.75 Vested/exercised (53,258 ) 22.08 (221,538 ) 19.61 Forfeited (22,010 ) 21.04 (413,159 ) 22.88 Outstanding at June 30, 2018 391,954 $ 26.09 5,727,247 $ 25.47 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings (loss) per share is presented below (amounts in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income (loss) $ 99,102 $ (50,171 ) $ 181,232 $ (4,752 ) Less: net (income) loss attributable to noncontrolling interests (16,367 ) 24,437 (47,317 ) (1,082 ) Net income (loss) attributable to Red Rock, basic $ 82,735 $ (25,734 ) $ 133,915 $ (5,834 ) Net income (loss) attributable to Red Rock, basic $ 82,735 $ (25,734 ) $ 133,915 $ (5,834 ) Effect of dilutive securities 12,852 — 37,159 — Net income (loss) attributable to Red Rock, diluted $ 95,587 $ (25,734 ) $ 171,074 $ (5,834 ) Three Months Ended Six Months Ended 2018 2017 2018 2017 Weighted-average shares of Class A common stock outstanding, basic 69,124 67,311 68,962 66,506 Effect of dilutive securities 47,878 — 48,011 — Weighted-average shares of Class A common stock outstanding, diluted 117,002 67,311 116,973 66,506 |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | The calculation of diluted earnings (loss) per share of Class A common stock excluded the following potentially dilutive shares that were outstanding at the end of the period because their inclusion would have been antidilutive (amounts in thousands): As of June 30, 2018 2017 Shares issuable in exchange for Class B common stock and LLC Units — 47,954 Shares issuable upon exercise of stock options 2,106 4,369 Shares issuable upon vesting of restricted stock 64 293 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The Company utilizes Adjusted EBITDA as its primary performance measure. The Company’s segment information and a reconciliation of net income (loss) to Adjusted EBITDA are presented below (amounts in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Net revenues Las Vegas operations $ 393,682 $ 378,142 $ 788,852 $ 772,386 Native American management 21,020 30,543 45,525 60,648 Reportable segment net revenues 414,702 408,685 834,377 833,034 Corporate and other 1,486 1,458 2,850 2,847 Net revenues $ 416,188 $ 410,143 $ 837,227 $ 835,881 Net income (loss) $ 99,102 $ (50,171 ) $ 181,232 $ (4,752 ) Adjustments Depreciation and amortization 45,992 46,807 89,156 92,060 Share-based compensation 3,103 2,326 5,557 3,738 Write-downs and other charges, net 10,786 9,638 14,631 10,692 Tax receivable agreement liability adjustment (73,502 ) (444 ) (90,375 ) (444 ) Related party lease termination — 98,393 — 98,393 Interest expense, net 31,598 33,853 62,709 68,797 Loss on extinguishment/modific ation of debt, net — 975 — 2,994 Change in fair value of derivative instruments (7,321 ) (3,330 ) (23,124 ) (3,369 ) Adjusted EBITDA attributable to MPM noncontrolling interest — (6,418 ) (962 ) (11,056 ) Provision (benefit) for income tax 14,845 (11,813 ) 25,701 (1,134 ) Other 41 86 196 172 Adjusted EBITDA (a) $ 124,644 $ 119,902 $ 264,721 $ 256,091 Adjusted EBITDA Las Vegas operations $ 112,589 $ 105,120 $ 238,466 $ 225,977 Native American management 19,790 22,695 41,884 46,012 Reportable segment Adjusted EBITDA 132,379 127,815 280,350 271,989 Corporate and other (7,735 ) (7,913 ) (15,629 ) (15,898 ) Adjusted EBITDA $ 124,644 $ 119,902 $ 264,721 $ 256,091 ____________________________________ (a) Adjusted EBITDA includes net income (loss) plus depreciation and amortization, share-based compensation, write-downs and other charges, net, including Palms redevelopment and preopening expenses, tax receivable agreement liability adjustment, related party lease termination, interest expense, net, loss on extinguishment/modification of debt, net, change in fair value of derivative instruments, provision (benefit) for income tax and other, and excludes Adjusted EBITDA attributable to the noncontrolling interests of MPM. |
Organization, Basis of Presen38
Organization, Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Major Hotel Casino Properties | Wholly Owned Properties | ||
Number of casino properties | 10 | |
Smaller Casino Properties | ||
Number of casino properties | 10 | |
Smaller Casino Properties | Partially Owned Properties | ||
Number of casino properties | 3 | |
Parent ownership percentage (unconsolidated) | 50.00% | |
Smaller Casino Properties | Partially Owned Properties | Equity Method Investment Reduced Below Zero | ||
Number of casino properties | 1 | |
Station Holdco | Voting Units | ||
Parent ownership percentage (consolidated) | 100.00% | |
Station Holdco | Non-Voting Units | ||
Parent ownership percentage (consolidated) | 59.80% | |
Station Casinos LLC | Voting Units | ||
Parent ownership percentage (consolidated) | 100.00% | |
MPM Enterprises, LLC | ||
Parent ownership percentage (consolidated) | 50.00% | |
Net assets | $ 2.1 |
Recently Issued and Adopted A39
Recently Issued and Adopted Accounting Standards (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Gross revenues | $ 410,143 | $ 835,881 | ||||
Promotional allowances | 0 | 0 | ||||
Net revenues | $ 416,188 | 410,143 | $ 837,227 | 835,881 | ||
Net income (loss) | 99,102 | (50,171) | 181,232 | (4,752) | ||
Deferred tax asset, net | 109,924 | 109,924 | $ 132,731 | |||
Other accrued liabilities | 242,279 | 242,279 | 182,903 | |||
Total stockholders' equity | 797,223 | 797,223 | 631,712 | $ 627,598 | ||
Net income (loss) attributable to Red Rock Resorts, Inc. | $ 82,735 | $ (25,734) | $ 133,915 | $ (5,834) | ||
Earnings Per Share, Basic and Diluted | $ (0.38) | $ (0.09) | ||||
Adjustments for New Accounting Pronouncement | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Gross revenues | $ (22,572) | $ (42,732) | ||||
Promotional allowances | 29,222 | 57,388 | ||||
Net revenues | 6,650 | 14,656 | ||||
Net income (loss) | 323 | 528 | ||||
Deferred tax asset, net | 511 | |||||
Other accrued liabilities | 6,090 | |||||
Total stockholders' equity | (5,579) | (5,754) | ||||
Net income (loss) attributable to Red Rock Resorts, Inc. | $ 186 | $ 303 | ||||
Earnings Per Share, Basic and Diluted | $ 0.01 | $ 0 | ||||
As Previously Reported | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Gross revenues | $ 432,715 | $ 878,613 | ||||
Promotional allowances | (29,222) | (57,388) | ||||
Net revenues | 403,493 | 821,225 | ||||
Net income (loss) | (50,494) | (5,280) | ||||
Deferred tax asset, net | 132,220 | |||||
Other accrued liabilities | 176,813 | |||||
Total stockholders' equity | $ 637,291 | $ 633,352 | ||||
Net income (loss) attributable to Red Rock Resorts, Inc. | $ (25,920) | $ (6,137) | ||||
Earnings Per Share, Basic and Diluted | $ (0.39) | $ (0.09) |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Disaggregation of Revenue | |||||
Casino | $ 232,756 | $ 219,136 | $ 469,003 | $ 442,672 | |
Food and beverage | 94,632 | 91,596 | 185,560 | 190,142 | |
Room | 42,719 | 45,194 | 89,349 | 95,954 | |
Other (a) | 24,917 | 23,541 | 47,473 | 46,210 | |
Management fees | 21,164 | 30,676 | 45,842 | 60,903 | |
Net revenues | 416,188 | 410,143 | 837,227 | 835,881 | |
Revenue from tenant leases | 6,200 | 6,200 | 12,300 | 12,100 | |
Complimentary goods and services expense | 49,800 | 45,200 | 98,600 | 90,500 | |
Contract Balances | |||||
Customer loyalty point liability | 20,600 | 20,600 | $ 20,300 | ||
Contract liabilities | 23,900 | 23,900 | 24,800 | ||
Customer-related payables | 6,900 | 6,900 | $ 8,500 | ||
Las Vegas Operations | |||||
Disaggregation of Revenue | |||||
Casino | 232,756 | 219,136 | 469,003 | 442,672 | |
Food and beverage | 94,632 | 91,596 | 185,560 | 190,142 | |
Room | 42,719 | 45,194 | 89,349 | 95,954 | |
Other (a) | 23,431 | 22,083 | 44,623 | 43,363 | |
Management fees | 144 | 133 | 317 | 255 | |
Net revenues | 393,682 | 378,142 | 788,852 | 772,386 | |
Native American Management | |||||
Disaggregation of Revenue | |||||
Casino | 0 | 0 | 0 | 0 | |
Food and beverage | 0 | 0 | 0 | 0 | |
Room | 0 | 0 | 0 | 0 | |
Other (a) | 0 | 0 | 0 | 0 | |
Management fees | 21,020 | 30,543 | 45,525 | 60,648 | |
Net revenues | 21,020 | 30,543 | 45,525 | 60,648 | |
Corporate and Other | |||||
Disaggregation of Revenue | |||||
Net revenues | 1,486 | 1,458 | 2,850 | 2,847 | |
Corporate and Other [Member] | |||||
Disaggregation of Revenue | |||||
Casino | 0 | 0 | 0 | 0 | |
Food and beverage | 0 | 0 | 0 | 0 | |
Room | 0 | 0 | 0 | 0 | |
Other (a) | 1,486 | 1,458 | 2,850 | 2,847 | |
Management fees | 0 | 0 | 0 | 0 | |
Net revenues | $ 1,486 | $ 1,458 | $ 2,850 | $ 2,847 |
Noncontrolling Interest in St41
Noncontrolling Interest in Station Holdco (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, units outstanding (in units) | 116,511,161 | 116,511,161 | 116,161,976 | ||
Total ownership percentage (consolidated) | 100.00% | 100.00% | 100.00% | ||
Class A common stock | |||||
Noncontrolling Interest [Line Items] | |||||
Exchanges of noncontrolling interests for Class A common stock (in shares) | 100,000 | 2,002,000 | 380,000 | 2,002,000 | |
Noncontrolling interest, units outstanding (in units) | 69,626,748 | 69,626,748 | 68,897,563 | ||
Parent ownership percentage (consolidated) | 59.80% | 59.80% | 59.30% | ||
Class B common stock | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, units outstanding (in units) | 46,884,413 | 46,884,413 | 47,264,413 | ||
Noncontrolling ownership percentage (consolidated) | 40.20% | 40.20% | 40.70% |
Native American Development - N
Native American Development - North Fork (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)a | Dec. 31, 2017USD ($) | |
Development and Management Agreements, Native American [Line Items] | ||
Native American development costs | $ 17,572 | $ 17,270 |
North Fork Rancheria of Mono Indians | ||
Development and Management Agreements, Native American [Line Items] | ||
Number of table games | 40 | |
Reimbursable advances for Native American development | $ 32,700 | |
Native American development costs | $ 17,600 | |
Development fee, percent fee | 4.00% | |
Property management fee, percent fee | 30.00% | |
Estimated period after construction begins, facility is completed and open for business | 18 months | |
Development agreement, term | 7 years | |
Management agreement, term | 7 years | |
North Fork Rancheria of Mono Indians | Minimum | ||
Development and Management Agreements, Native American [Line Items] | ||
Number of slot machines | 2,000 | |
Estimated costs for Native American development projects | $ 250,000 | |
Estimated period to begin construction | 21 months | |
Successful project completion | 65.00% | |
North Fork Rancheria of Mono Indians | Maximum | ||
Development and Management Agreements, Native American [Line Items] | ||
Number of slot machines | 2,500 | |
Estimated costs for Native American development projects | $ 300,000 | |
Estimated period to begin construction | 33 months | |
Successful project completion | 75.00% | |
North Fork Rancheria of Mono Indians | Land Held for Development | ||
Development and Management Agreements, Native American [Line Items] | ||
Area of Land | a | 305 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Accrued Gaming Liabilities, Current | $ 53,975 | $ 57,070 |
Employee-related Liabilities, Current | 53,705 | 51,095 |
Construction Payable, Current | 95,916 | 39,673 |
Customer Advances and Deposits, Current | 14,534 | 13,914 |
Other Accrued Liabilities, Current | 24,149 | 21,151 |
Other accrued liabilities | $ 242,279 | $ 182,903 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ (34,864) | $ (30,094) |
Total long-term debt, net | 2,575,789 | 2,587,728 |
Station Casinos LLC | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,610,653 | 2,617,822 |
Current portion of long-term debt | (34,864) | (30,094) |
Total long-term debt, net | 2,575,789 | 2,587,728 |
Station Casinos LLC | Line of Credit | Term Loan B Facility, Due June 8, 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,780,066 | $ 1,780,193 |
Effective interest rate (as a percent) | 4.60% | 4.06% |
Unamortized discount and deferred issuance costs | $ 48,600 | $ 53,200 |
Station Casinos LLC | Line of Credit | Term Loan A Facility, Due June 8, 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 257,653 | $ 263,860 |
Effective interest rate (as a percent) | 4.09% | 3.36% |
Unamortized discount and deferred issuance costs | $ 4,600 | $ 5,200 |
Station Casinos LLC | Revolving Credit Facility | Revolving Credit Facility Due June 8, 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0 |
Maximum borrowing capacity | 781,000 | |
Station Casinos LLC | Senior Notes | 5.00% Senior Notes, Due October 1, 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 543,936 | $ 543,596 |
Face amount | $ 550,000 | |
Stated interest rate (as a percent) | 5.00% | 5.00% |
Unamortized discount and deferred issuance costs | $ 6,100 | $ 6,400 |
Station Casinos LLC | Other Long-term Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 28,998 | $ 30,173 |
Weighted average interest rate (as a percent) | 3.96% | 3.95% |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - Station Casinos LLC $ in Millions | Jun. 30, 2018USD ($) |
Line of Credit and Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Interest coverage ratio | 4.60 |
Consolidated total leverage ratio | 5.07 |
Line of Credit and Revolving Credit Facility | Minimum | |
Debt Instrument [Line Items] | |
Interest coverage ratio | 2.50 |
Line of Credit and Revolving Credit Facility | Maximum | First Period | |
Debt Instrument [Line Items] | |
Consolidated total leverage ratio | 6.50 |
Line of Credit and Revolving Credit Facility | Maximum | Last Period | |
Debt Instrument [Line Items] | |
Consolidated total leverage ratio | 5.25 |
Revolving Credit Facility | Revolving Credit Facility Due June 8, 2022 | |
Debt Instrument [Line Items] | |
Borrowing availability, amount | $ 743.9 |
Outstanding letters of credit and similar obligations, amount | $ 37.1 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Derivative [Line Items] | |||||
Change in fair value of derivative instruments | $ 7,321 | $ 3,330 | $ 23,124 | $ 3,369 | |
Interest Rate Swap | Not Designated as Hedging Instrument | Change in fair value of derivative instruments | |||||
Derivative [Line Items] | |||||
Change in fair value of derivative instruments | 7,321 | 3,367 | 23,124 | 3,367 | |
Interest Rate Swap | Not Designated as Hedging Instrument | Prepaid expenses and other current assets | |||||
Derivative [Line Items] | |||||
Fair value of derivative instruments | 290 | 290 | $ 3,620 | ||
Interest Rate Swap | Not Designated as Hedging Instrument | Other assets, net | |||||
Derivative [Line Items] | |||||
Fair value of derivative instruments | 40,313 | 40,313 | $ 18,383 | ||
Interest Rate Swap | Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Amount of gain (loss) on derivatives recognized in other comprehensive income (effective portion) | 0 | (3,268) | 0 | (1,875) | |
Interest Rate Swap | Designated as Hedging Instrument | Interest expense, net | |||||
Derivative [Line Items] | |||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income (effective portion) | 689 | (986) | 1,387 | (2,521) | |
Interest Rate Swap | Designated as Hedging Instrument | Change in fair value of derivative instruments | |||||
Derivative [Line Items] | |||||
Amount of gain (loss) on derivatives recognized in income (ineffective portion and amount excluded from effectiveness testing) | $ 0 | $ (37) | $ 0 | $ 2 | |
Station Casinos LLC | Interest Rate Swap | London Interbank Offered Rate (LIBOR) | Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Number of derivative instruments held | 20 | 20 | |||
Term of contract | 1 year | ||||
Term of variable interest rate received | 1 month | ||||
Termination value | $ 41,600 | $ 41,600 | |||
Cumulative deferred gain (prior to dedesignation) | 5,700 | 5,700 | |||
Estimated deferred gain expected to be reclassified into earnings | 3,000 | ||||
Amount of debt hedged | $ 1,500,000 | $ 1,500,000 | |||
Effective fixed interest rate of debt hedged | 3.75% | 3.75% | |||
Station Casinos LLC | Interest Rate Swap | London Interbank Offered Rate (LIBOR) | Not Designated as Hedging Instrument | Minimum | |||||
Derivative [Line Items] | |||||
Variable interest rate received | 0.75% | 0.75% | |||
Station Casinos LLC | Interest Rate Swap | London Interbank Offered Rate (LIBOR) | Not Designated as Hedging Instrument | July 2017 | |||||
Derivative [Line Items] | |||||
Average fixed interest rate paid | 1.18% | 1.18% | |||
Station Casinos LLC | Interest Rate Swap | London Interbank Offered Rate (LIBOR) | Not Designated as Hedging Instrument | July 2018 | |||||
Derivative [Line Items] | |||||
Average fixed interest rate paid | 1.46% | 1.46% | |||
Station Casinos LLC | Interest Rate Swap | London Interbank Offered Rate (LIBOR) | Not Designated as Hedging Instrument | July 2019 | |||||
Derivative [Line Items] | |||||
Average fixed interest rate paid | 1.73% | 1.73% | |||
Station Casinos LLC | Interest Rate Swap | London Interbank Offered Rate (LIBOR) | Not Designated as Hedging Instrument | July 2020 | |||||
Derivative [Line Items] | |||||
Average fixed interest rate paid | 1.94% | 1.94% | |||
Station Casinos LLC | Interest Rate Swap | London Interbank Offered Rate (LIBOR) | Not Designated as Hedging Instrument | July 2017 - 2020 | |||||
Derivative [Line Items] | |||||
Number of derivative instruments held | 12 | 12 | |||
Notional amount | $ 1,000,000 | $ 1,000,000 | |||
Station Casinos LLC | Interest Rate Swap | London Interbank Offered Rate (LIBOR) | Not Designated as Hedging Instrument | July 2017 - 2021 | |||||
Derivative [Line Items] | |||||
Number of derivative instruments held | 8 | 8 | |||
Notional amount | $ 550,000 | $ 550,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Interest Rate Swap | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | $ 40,603 | $ 22,003 |
Interest Rate Swap | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 0 | 0 |
Interest Rate Swap | Significant Other Observable Inputs (Level 2) | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 40,603 | 22,003 |
Interest Rate Swap | Significant Unobservable Inputs (Level 3) | Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 0 | 0 |
Station Casinos LLC | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate fair value of long-term debt | 2,557,000 | 2,677,000 |
Aggregate carrying amount of long-term debt | $ 2,610,653 | $ 2,617,822 |
Stockholders' Equity - Equity (
Stockholders' Equity - Equity (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balances, December 31, 2017 | $ 631,712 | $ 627,598 | ||
Net income (loss) | $ 99,102 | $ (50,171) | 181,232 | (4,752) |
Other comprehensive loss, net of tax | (600) | $ (1,823) | (1,210) | 408 |
Share-based compensation | 5,629 | |||
Distributions | (10,479) | |||
Dividends | (13,888) | |||
Repurchase of Class A common stock | (307) | |||
Stock option exercises | 4,344 | |||
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests for Class A common stock | (300) | (2,528) | ||
Deferred tax assets resulting from exchanges of noncontrolling interests for Class A common stock | 400 | 2,718 | ||
Acquisition of subsidiary noncontrolling interests | 0 | $ (4,484) | ||
Balances, June 30, 2018 | $ 797,223 | $ 797,223 | ||
Class A common stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exchanges of noncontrolling interests for Class A common stock (in shares) | 100 | 2,002 | 380 | 2,002 |
Common stock | Class A common stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balances, December 31, 2017 | $ 689 | |||
Number of shares at beginning of period | 68,898 | |||
Issuance of restricted stock awards, net of forfeitures (in shares) | 137 | |||
Issuance of restricted stock awards, net of forfeitures | $ 1 | |||
Repurchase of Class A common stock (in shares) | (10) | |||
Stock option exercises (in shares) | 222 | |||
Stock option exercises | $ 2 | |||
Exchanges of noncontrolling interests for Class A common stock (in shares) | 380 | |||
Exchanges of noncontrolling interests for Class A common stock | $ 4 | |||
Balances, June 30, 2018 | $ 696 | $ 696 | ||
Number of shares at end of period | 69,627 | 69,627 | ||
Common stock | Class B common stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balances, December 31, 2017 | $ 1 | |||
Number of shares at beginning of period | 47,264 | |||
Exchanges of noncontrolling interests for Class A common stock (in shares) | (380) | |||
Balances, June 30, 2018 | $ 1 | $ 1 | ||
Number of shares at end of period | 46,884 | 46,884 | ||
Additional paid-in capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balances, December 31, 2017 | $ 349,430 | |||
Share-based compensation | 5,629 | |||
Issuance of restricted stock awards, net of forfeitures | (1) | |||
Repurchase of Class A common stock | (307) | |||
Stock option exercises | 4,342 | |||
Exchanges of noncontrolling interests for Class A common stock | 2,149 | |||
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests for Class A common stock | (2,528) | |||
Deferred tax assets resulting from exchanges of noncontrolling interests for Class A common stock | 2,718 | |||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | (3,363) | |||
Balances, June 30, 2018 | $ 358,069 | 358,069 | ||
Retained earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balances, December 31, 2017 | 26,138 | |||
Net income (loss) | 133,915 | |||
Dividends | (13,888) | |||
Balances, June 30, 2018 | 146,165 | 146,165 | ||
Accumulated other comprehensive income | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balances, December 31, 2017 | 2,473 | |||
Other comprehensive loss, net of tax | (651) | |||
Exchanges of noncontrolling interests for Class A common stock | 21 | |||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 9 | |||
Balances, June 30, 2018 | 1,852 | 1,852 | ||
Noncontrolling interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balances, December 31, 2017 | 252,981 | |||
Net income (loss) | 47,317 | |||
Other comprehensive loss, net of tax | (559) | |||
Share-based compensation | 0 | |||
Distributions | (10,479) | |||
Exchanges of noncontrolling interests for Class A common stock | (2,174) | |||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 3,354 | |||
Balances, June 30, 2018 | $ 290,440 | $ 290,440 |
Stockholders' Equity - AOCI (De
Stockholders' Equity - AOCI (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Tax beneift (expense) related to unrealized gain (loss) reclassified from accumulated other comprehensive income (loss) into income | $ 200 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances, December 31, 2017 | 2,473 | |
Balances, June 30, 2018 | 1,852 | |
Unrealized gain on interest rate swaps | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances, December 31, 2017 | 2,510 | |
Amounts reclassified from accumulated other comprehensive income (loss) into income (a) | (651) | [1] |
Net current-period other comprehensive loss | (651) | |
Exchanges of noncontrolling interests for Class A common stock | 21 | |
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 9 | |
Balances, June 30, 2018 | 1,889 | |
Unrecognized pension liability | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances, December 31, 2017 | (37) | |
Amounts reclassified from accumulated other comprehensive income (loss) into income (a) | 0 | [1] |
Net current-period other comprehensive loss | 0 | |
Exchanges of noncontrolling interests for Class A common stock | 0 | |
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 0 | |
Balances, June 30, 2018 | (37) | |
Accumulated other comprehensive income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances, December 31, 2017 | 2,473 | |
Amounts reclassified from accumulated other comprehensive income (loss) into income (a) | (651) | [1] |
Net current-period other comprehensive loss | (651) | |
Exchanges of noncontrolling interests for Class A common stock | 21 | |
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 9 | |
Balances, June 30, 2018 | $ 1,852 | |
[1] | (a)Net of $0.2 million tax benefit. |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in ownership of Station Holdco LLC (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Changes in ownership of Station Holdco LLC [Line Items] | ||||
Net income (loss) attributable to Red Rock Resorts, Inc. | $ 82,735 | $ (25,734) | $ 133,915 | $ (5,834) |
Red Rock Resorts, Inc. stockholders' equity | ||||
Changes in ownership of Station Holdco LLC [Line Items] | ||||
Net income (loss) attributable to Red Rock Resorts, Inc. | 82,735 | (25,734) | 133,915 | (5,834) |
Exchanges of noncontrolling interests for Class A common stock | 283 | 11,400 | 2,174 | 11,400 |
Acquisition of subsidiary noncontrolling interests | 0 | 0 | 0 | 2,850 |
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | (2,259) | (2,388) | (3,354) | (2,925) |
Net transfers (to) from noncontrolling interests | (1,976) | 9,012 | (1,180) | 11,325 |
Change from net income (loss) attributable to Red Rock Resorts, Inc. and net transfers (to) from noncontrolling interests | $ 80,759 | $ (16,722) | $ 132,735 | $ 5,491 |
Stockholders' Equity Narrative
Stockholders' Equity Narrative (Details) - $ / shares | Sep. 28, 2018 | Sep. 14, 2018 | Aug. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||||||||
Dividends declared per common share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 | ||||
Subsequent Event | ||||||||
Class of Stock [Line Items] | ||||||||
Dividends payable, date declared | Jul. 31, 2018 | |||||||
Dividends payable, date of record | Sep. 14, 2018 | |||||||
Dividends payable, date to be paid | Sep. 28, 2018 | |||||||
Dividends declared per common share (in dollars per share) | $ 0.10 | |||||||
Station Holdco | Subsequent Event | ||||||||
Class of Stock [Line Items] | ||||||||
Distributions declared per LLC Unit (in dollars per unit) | $ 0.10 | |||||||
Class B common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Noncontrolling ownership percentage (consolidated) | 40.20% | 40.20% | 40.70% |
Share-based Compensation Awards
Share-based Compensation Awards Under Equity Incentive Plan (Details) - Class A common stock | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Restricted stock | |
Restricted Class A Common Stock | |
Restricted stock options, balance at beginning of the period (in shares) | shares | 308,310 |
Restricted stock options, granted in period (in shares) | shares | 158,912 |
Restricted stock options, vested in period (in shares) | shares | (53,258) |
Restricted stock options, forfeited in period (in shares) | shares | (22,010) |
Restricted stock options, balance at end of the period (in shares) | shares | 391,954 |
Weighted-average grant date fair value | |
Weighted average grant date fair value, restricted stock options balance at the beginning of the period (in usd per share) | $ / shares | $ 21.60 |
Weighted average grant date fair value, restricted stock options granted (in usd per share) | $ / shares | 32.75 |
Weighted average grant date fair value, restricted stock options vested (in usd per share) | $ / shares | 22.08 |
Weighted average grant date fair value, restricted stock options forfeited or expired (in usd per share | $ / shares | 21.04 |
Weighted average grant date fair value, restricted stock options balance at the end of the period (in usd per share) | $ / shares | $ 26.09 |
Employee stock option | |
Stock Options | |
Options, balance at beginning of the period (in shares) | shares | 4,248,465 |
Options, granted in period (in shares) | shares | 2,113,479 |
Options, vested in period (in shares) | shares | (221,538) |
Options, forfeited or expired in period (in shares) | shares | (413,159) |
Options, balance at end of the period (in shares) | shares | 5,727,247 |
Weighted-average exercise price | |
Weighted average exercise price, options balance at beginning of the period (in usd per share) | $ / shares | $ 21.29 |
Weighted average exercise price, options granted in period (in usd per share) | $ / shares | 32.75 |
Weighted average exercise price, exercised in period (in usd per share) | $ / shares | 19.61 |
Weighted average exercise price, options forfeited or expired in period (in usd per share) | $ / shares | 22.88 |
Weighted average exercise price, options balance at end of the period (in usd per share) | $ / shares | $ 25.47 |
Share-based Compensation Narrat
Share-based Compensation Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | $ 3,103 | $ 2,326 | $ 5,557 | $ 3,738 |
Compensation cost not yet recognized | $ 40,700 | $ 40,700 | ||
Compensation cost not yet recognized, period for recognition | 3 years 1 month | |||
Class A common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 11,585,479 | 11,585,479 | ||
Number of shares available for grant (in shares) | 3,200,000 | 3,200,000 |
Write-downs and Other Charges54
Write-downs and Other Charges, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Write-downs and other charges, net | $ 10,786 | $ 9,638 | $ 14,631 | $ 10,692 |
Lease termination expense | 3,500 | 3,500 | ||
Losses on asset disposals | $ 5,500 | $ 5,600 | ||
Palms Casino Resort [Member] | ||||
Pre-opening and development | $ 9,000 | $ 11,600 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Federal statutory income tax rate | 21.00% | 35.00% | |||
Provisional income tax expense related to remeasurement of deferred tax assets due to tax reform | $ 85,300 | ||||
Effective Income Tax Rate Reconciliation | |||||
Effective income tax rate | 13.03% | 19.06% | 12.42% | 19.27% | |
Income tax expense related to reduction of deferred tax assets | $ 19,400 | ||||
Components of Deferred Tax Assets and Liabilities | |||||
Deferred tax assets, valuation allowance | $ 50,900 | $ 50,900 | 57,300 | ||
Tax Receivable Agreement Liability | |||||
Realized tax benefits payable to related parties (as a percent of total realized tax benefits) | 85.00% | ||||
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests for Class A common stock | 300 | $ 2,528 | |||
Deferred tax assets resulting from exchanges of noncontrolling interests for Class A common stock | 400 | 2,718 | |||
Tax receivable agreement liability | 25,200 | 25,200 | $ 141,900 | ||
Tax receivable agreement liability adjustment | 73,502 | $ 444 | 90,375 | $ 444 | |
Payments on tax receivable agreement liability | $ 28,865 | $ 0 | |||
London Interbank Offered Rate (LIBOR) | |||||
Tax Receivable Agreement Liability | |||||
Late payments, basis spread on variable rate at which interest is accrued | 5.00% | ||||
Amounts resulting from assignment of TRA rights and obligations to the Company | |||||
Tax Receivable Agreement Liability | |||||
Tax receivable agreement liability | $ (119,200) | $ (119,200) | |||
Tax receivable agreement liability adjustment | 90,400 | ||||
Payments on tax receivable agreement liability | $ 28,900 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Realized tax benefits payable to related parties (as a percent of total realized tax benefits) | 85.00% | |
Tax receivable agreement liability | $ 25.2 | $ 141.9 |
Entities related to Frank J. Fertitta III and Lorenzo J Fertitta | ||
Related Party Transaction [Line Items] | ||
Tax receivable agreement liability | 9.2 | 9.2 |
Current and former executive officers | ||
Related Party Transaction [Line Items] | ||
Tax receivable agreement liability | $ 11.5 | $ 9 |
Earnings Per Share Reconciliati
Earnings Per Share Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Income (Loss) Available to Common Stockholders, Diluted | ||||
Net income (loss) | $ 99,102 | $ (50,171) | $ 181,232 | $ (4,752) |
Less: net (income) loss attributable to noncontrolling interests | (16,367) | 24,437 | (47,317) | (1,082) |
Net income (loss) attributable to Red Rock, basic | 82,735 | (25,734) | 133,915 | (5,834) |
Effect of dilutive securities | 12,852 | 0 | 37,159 | 0 |
Net income (loss) attributable to Red Rock, diluted | $ 95,587 | $ (25,734) | $ 171,074 | $ (5,834) |
Weighted Average Number of Shares Outstanding Reconciliation | ||||
Weighted-average shares of Class A common stock outstanding, basic | 69,124 | 67,311 | 68,962 | 66,506 |
Effect of dilutive securities | 47,878 | 0 | 48,011 | 0 |
Weighted-average shares of Class A common stock outstanding, diluted | 117,002 | 67,311 | 116,973 | 66,506 |
Earnings Per Share Antidilutive
Earnings Per Share Antidilutive Shares Excluded from Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Class B common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 47,954 |
Restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 64 | 293 |
Employee stock option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,106 | 4,369 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Segment | Jun. 30, 2017USD ($) | ||
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 416,188 | $ 410,143 | $ 837,227 | $ 835,881 | |
Net income (loss) | 99,102 | (50,171) | 181,232 | (4,752) | |
Depreciation and amortization | 45,992 | 46,807 | 89,156 | 92,060 | |
Share-based compensation | 3,103 | 2,326 | 5,557 | 3,738 | |
Write-downs and other charges, net | 10,786 | 9,638 | 14,631 | 10,692 | |
Tax receivable agreement liability adjustment | (73,502) | (444) | (90,375) | (444) | |
Related party lease termination | 0 | 98,393 | 0 | 98,393 | |
Interest expense, net | 31,598 | 33,853 | 62,709 | 68,797 | |
Loss on extinguishment/modification of debt, net | 0 | 975 | 0 | 2,994 | |
Change in fair value of derivative instruments | (7,321) | (3,330) | (23,124) | (3,369) | |
Adjusted EBITDA attributable to MPM noncontrolling interest | 0 | 6,418 | 962 | 11,056 | |
Provision (benefit) for income tax | 14,845 | (11,813) | 25,701 | (1,134) | |
Other adjustments to net (loss) income | 41 | 86 | 196 | 172 | |
Adjusted EBITDA (a) | [1] | 124,644 | 119,902 | $ 264,721 | 256,091 |
Las Vegas Operations | |||||
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Segment | 1 | ||||
Net revenues | 393,682 | 378,142 | $ 788,852 | 772,386 | |
Adjusted EBITDA (a) | [1] | 112,589 | 105,120 | $ 238,466 | 225,977 |
Native American Management | |||||
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Segment | 1 | ||||
Net revenues | 21,020 | 30,543 | $ 45,525 | 60,648 | |
Adjusted EBITDA (a) | [1] | 19,790 | 22,695 | 41,884 | 46,012 |
Reportable Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 414,702 | 408,685 | 834,377 | 833,034 | |
Adjusted EBITDA (a) | [1] | 132,379 | 127,815 | 280,350 | 271,989 |
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 1,486 | 1,458 | 2,850 | 2,847 | |
Adjusted EBITDA (a) | [1] | $ (7,735) | $ (7,913) | $ (15,629) | $ (15,898) |
[1] | (a)Adjusted EBITDA includes net income (loss) plus depreciation and amortization, share-based compensation, write-downs and other charges, net, including Palms redevelopment and preopening expenses, tax receivable agreement liability adjustment, related party lease termination, interest expense, net, loss on extinguishment/modification of debt, net, change in fair value of derivative instruments, provision (benefit) for income tax and other, and excludes Adjusted EBITDA attributable to the noncontrolling interests of MPM. |