Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 21, 2022 | Jun. 30, 2021 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-37754 | ||
Entity Registrant Name | RED ROCK RESORTS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-5081182 | ||
Entity Address, Address Line One | 1505 South Pavilion Center Drive | ||
Entity Address, City or Town | Las Vegas | ||
Entity Address, State or Province | NV | ||
Entity Address, Postal Zip Code | 89135 | ||
City Area Code | 702 | ||
Local Phone Number | 495-3000 | ||
Title of 12(b) Security | Class A Common Stock, $.01 par value | ||
Trading Symbol | RRR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,600 | ||
Entity Central Index Key | 0001653653 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference [Text Block] | Portions of the registrant’s definitive Proxy Statement for the 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year end of December 31, 2021. | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Las Vegas, Nevada | ||
Auditor Firm ID | 42 | ||
Common Class A [Member] | |||
Entity Common Stock, Shares Outstanding | 61,270,059 | ||
Common Class B [Member] | |||
Entity Common Stock, Shares Outstanding | 45,985,804 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 275,281 | $ 121,176 |
Restricted cash | 0 | 4,529 |
Receivables, net | 36,739 | 35,130 |
Inventories | 11,734 | 13,079 |
Prepaid gaming tax | 26,745 | 24,316 |
Prepaid expenses and other current assets | 20,416 | 13,827 |
Assets held for sale | 58,225 | 12,600 |
Total current assets | 429,140 | 224,657 |
Property and equipment, net | 2,009,608 | 2,857,973 |
Goodwill | 195,676 | 195,676 |
Intangible assets, net | 87,172 | 100,817 |
Land held for development | 186,710 | 258,042 |
Investments in joint ventures | 6,087 | 8,162 |
Native American development costs | 34,094 | 22,149 |
Deferred tax asset, net | 98,625 | 0 |
Other assets, net | 93,221 | 72,478 |
Total assets | 3,140,333 | 3,739,954 |
Current liabilities: | ||
Accounts payable | 17,466 | 11,208 |
Accrued interest payable | 14,320 | 20,128 |
Other accrued liabilities | 147,109 | 146,077 |
Current portion of long-term debt | 25,921 | 22,844 |
Total current liabilities | 204,816 | 200,257 |
Long-term debt, less current portion | 2,827,603 | 2,879,163 |
Other long-term liabilities | 30,723 | 28,499 |
Payable to related parties pursuant to tax receivable agreement | 27,158 | 27,394 |
Total liabilities | 3,090,300 | 3,135,313 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Additional paid-in capital | 55,028 | 385,579 |
Retained earnings (accumulated deficit) | 3,851 | (33,071) |
Accumulated other comprehensive loss | 0 | (623) |
Total Red Rock Resorts, Inc. stockholders’ equity | 59,494 | 352,598 |
Noncontrolling interest | (9,461) | 252,043 |
Total stockholders’ equity | 50,033 | 604,641 |
Total liabilities and stockholders’ equity | 3,140,333 | 3,739,954 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Common stock | 614 | 712 |
Common Class B [Member] | ||
Stockholders’ equity: | ||
Common stock | $ 1 | $ 1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Stockholders’ equity: | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 61,426,605 | 71,228,168 |
Common Stock, Shares, Outstanding | 61,426,605 | 71,228,168 |
Common Class B [Member] | ||
Stockholders’ equity: | ||
Common Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 45,985,804 | 46,085,804 |
Common Stock, Shares, Outstanding | 45,985,804 | 46,085,804 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating revenues: | |||
Net revenues | $ 1,617,899 | $ 1,182,445 | $ 1,856,534 |
Operating costs and expenses: | |||
Selling, general and administrative | 347,090 | 324,644 | 416,355 |
Depreciation and amortization | 157,791 | 231,391 | 222,211 |
Write-downs and other, net | (18,677) | 36,522 | 82,026 |
Loss on sale of Palms | 177,664 | 0 | 0 |
Total operating costs and expenses | 1,216,357 | 1,093,856 | 1,670,533 |
Operating income | 401,542 | 88,589 | 186,001 |
Earnings from joint ventures | 3,293 | 1,097 | 1,928 |
Operating income and earnings from joint ventures | 404,835 | 89,686 | 187,929 |
Other (expense) income: | |||
Interest expense, net | (103,206) | (128,465) | (156,679) |
(Loss) gain on extinguishment/modification of debt, net | (13,492) | 240 | (19,939) |
Change in fair value of derivative instruments | (215) | (21,590) | (19,467) |
Other | (2,379) | (333) | (315) |
Total other expense | (119,292) | (150,148) | (196,400) |
Income (loss) before income tax | 285,543 | (60,462) | (8,471) |
Benefit (provision) for income tax | 69,287 | (114,081) | 1,734 |
Net income (loss) | 354,830 | (174,543) | (6,737) |
Less: net income (loss) attributable to noncontrolling interests | 112,980 | (24,146) | (3,386) |
Net income (loss) attributable to Red Rock Resorts, Inc. | $ 241,850 | $ (150,397) | $ (3,351) |
Earnings (loss) per common share (Note 15): | |||
Earnings (loss) per share of Class A common stock, basic | $ 3.50 | $ (2.13) | $ (0.05) |
Earnings (loss) per share of Class A common stock, diluted | $ 2.84 | $ (2.13) | $ (0.05) |
Weighted-average common shares outstanding: | |||
Basic | 69,071 | 70,542 | 69,565 |
Diluted | 116,452 | 70,542 | 69,565 |
Casino | |||
Operating revenues: | |||
Net revenues | $ 1,142,606 | $ 764,255 | $ 984,253 |
Operating costs and expenses: | |||
Operating costs and expenses | 275,462 | 232,939 | 351,043 |
Food and beverage | |||
Operating revenues: | |||
Net revenues | 245,432 | 192,899 | 481,558 |
Operating costs and expenses: | |||
Operating costs and expenses | 196,156 | 195,963 | 465,505 |
Room | |||
Operating revenues: | |||
Net revenues | 143,916 | 87,035 | 192,305 |
Operating costs and expenses: | |||
Operating costs and expenses | 55,336 | 49,363 | 81,064 |
Other | |||
Operating revenues: | |||
Net revenues | 76,746 | 56,279 | 106,773 |
Operating costs and expenses: | |||
Operating costs and expenses | 25,535 | 23,034 | 52,329 |
Management fees | |||
Operating revenues: | |||
Net revenues | $ 9,199 | $ 81,977 | $ 91,645 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 354,830 | $ (174,543) | $ (6,737) |
Other comprehensive income (loss), net of tax: | |||
Loss on interest rate swaps from reclassifications into income | 0 | (360) | (2,600) |
Minimum pension liability adjustment, net | 1,137 | (196) | (486) |
Other comprehensive income (loss), net of tax | 1,137 | (556) | (3,086) |
Comprehensive income (loss) | 355,967 | (175,099) | (9,823) |
Less: comprehensive income (loss) attributable to noncontrolling interests | 113,513 | (24,723) | (4,743) |
Comprehensive income (loss) attributable to Red Rock Resorts, Inc. | $ 242,454 | $ (150,376) | $ (5,080) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2018 | $ 816,995 | $ 697 | $ 1 | $ 361,970 | $ 155,869 | $ 1,083 | $ 297,375 |
Number of shares at Dec. 31, 2018 | 69,663 | 46,884 | |||||
Net income (loss) | (6,737) | (3,351) | (3,386) | ||||
Other comprehensive income (loss), net of tax | (3,086) | (1,729) | (1,357) | ||||
Share-based compensation | 16,816 | 16,816 | |||||
Distributions | (18,743) | (18,743) | |||||
Dividends declared | (28,095) | (28,095) | |||||
Issuance of restricted stock awards, net of forfeitures | 0 | $ 4 | (4) | ||||
Issuance of restricted stock awards, net of forfeitures (shares) | 426 | ||||||
Repurchases of Class A common stock | (376) | $ 0 | (376) | ||||
Repurchases of Class A common stock (shares) | (15) | ||||||
Stock option exercises | 6,707 | $ 3 | 6,704 | ||||
Stock option exercises (shares) | 334 | ||||||
Exchanges of noncontrolling interests | $ 0 | $ 1 | 368 | 1 | (370) | ||
Exchanges of noncontrolling interests (shares) | 57 | 57 | (57) | ||||
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests | $ (213) | (213) | |||||
Net deferred tax assets resulting from equity transactions | (671) | (671) | |||||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 0 | (8,365) | 4 | 8,361 | |||
Balance at Dec. 31, 2019 | 782,597 | $ 705 | $ 1 | 376,229 | 124,423 | (641) | 281,880 |
Number of shares at Dec. 31, 2019 | 70,465 | 46,827 | |||||
Net income (loss) | (174,543) | (150,397) | (24,146) | ||||
Other comprehensive income (loss), net of tax | (556) | 21 | (577) | ||||
Share-based compensation | 10,889 | 10,889 | 0 | ||||
Distributions | (4,620) | (4,620) | |||||
Dividends declared | (7,097) | (7,097) | |||||
Issuance of restricted stock awards, net of forfeitures | 0 | $ 0 | 0 | ||||
Issuance of restricted stock awards, net of forfeitures (shares) | (7) | ||||||
Repurchases of Class A common stock | (81) | $ 0 | (81) | ||||
Repurchases of Class A common stock (shares) | (7) | ||||||
Stock option exercises | 397 | $ 0 | 397 | ||||
Stock option exercises (shares) | 36 | ||||||
Exchanges of noncontrolling interests | $ 0 | $ 7 | 4,404 | 1 | (4,412) | ||
Exchanges of noncontrolling interests (shares) | 741 | 741 | (741) | ||||
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests | $ (2,345) | (2,345) | |||||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 0 | (3,914) | (4) | 3,918 | |||
Balance at Dec. 31, 2020 | 604,641 | $ 712 | $ 1 | 385,579 | (33,071) | (623) | 252,043 |
Number of shares at Dec. 31, 2020 | 71,228 | 46,086 | |||||
Net income (loss) | 354,830 | 241,850 | 112,980 | ||||
Other comprehensive income (loss), net of tax | 1,137 | 604 | 533 | ||||
Share-based compensation | 12,761 | 12,761 | 0 | ||||
Distributions | (237,160) | (237,160) | |||||
Dividends declared | (204,928) | (204,928) | |||||
Issuance of restricted stock awards, net of forfeitures | 0 | $ 1 | (1) | ||||
Issuance of restricted stock awards, net of forfeitures (shares) | 114 | ||||||
Repurchases of Class A common stock | (500,894) | $ (104) | (500,790) | ||||
Repurchases of Class A common stock (shares) | (10,421) | ||||||
Stock option exercises | (1,521) | $ 5 | (1,526) | ||||
Stock option exercises (shares) | 506 | ||||||
Exchanges of noncontrolling interests | $ (2,822) | $ 0 | (2,223) | (1) | (598) | ||
Exchanges of noncontrolling interests (shares) | 100 | 0 | (100) | ||||
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests | $ (641) | (641) | |||||
Net deferred tax assets resulting from equity transactions | 24,630 | 24,630 | |||||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 0 | 137,239 | 20 | (137,259) | |||
Balance at Dec. 31, 2021 | $ 50,033 | $ 614 | $ 1 | $ 55,028 | $ 3,851 | $ 0 | $ (9,461) |
Number of shares at Dec. 31, 2021 | 61,427 | 45,986 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 354,830 | $ (174,543) | $ (6,737) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 157,791 | 231,391 | 222,211 |
Change in fair value of derivative instruments | 215 | 21,590 | 19,467 |
Reclassification of unrealized gain on derivative instruments into income | 0 | (1,351) | (2,843) |
Write-downs and other, net | (20,947) | 17,424 | 7,194 |
Loss on sale of Palms | 177,664 | 0 | 0 |
Amortization of debt discount and debt issuance costs | 9,592 | 10,472 | 16,421 |
Share-based compensation | 12,728 | 10,886 | 16,848 |
Loss (gain) on extinguishment/modification of debt, net | 13,492 | (240) | 19,939 |
Deferred income tax | (74,161) | 114,081 | (1,735) |
Changes in assets and liabilities: | |||
Receivables, net | (1,311) | 16,425 | (1,072) |
Inventories and prepaid expenses | (14,406) | 10,344 | (397) |
Accounts payable | 7,367 | (21,411) | 9,686 |
Accrued interest payable | (4,314) | 12,651 | 59 |
Other accrued liabilities | (5,358) | (35,384) | 16,314 |
Other, net | (3,219) | 455 | 1,277 |
Net cash provided by operating activities | 609,963 | 212,790 | 316,632 |
Cash flows from investing activities: | |||
Capital expenditures, net of related payables | (61,295) | (58,496) | (353,269) |
Net proceeds from asset sales | 678,413 | 580 | 938 |
Acquisition of land held for development | (4,650) | 0 | (57,354) |
Native American development costs | (12,890) | (2,284) | (804) |
Net settlement of derivative instruments | (13,467) | (14,013) | 11,023 |
Other, net | 148 | 4,656 | (5,671) |
Net cash provided by (used in) investing activities | 586,259 | (69,557) | (405,137) |
Cash flows from financing activities: | |||
Borrowings under credit agreements with original maturity dates greater than three months | 675,000 | 1,057,500 | 690,000 |
Payments under credit agreements with original maturity dates greater than three months | (696,278) | (1,922,375) | (527,449) |
Proceeds from issuance of Senior Notes | 500,000 | 750,000 | 0 |
Redemption of Senior Notes | (530,333) | 0 | 0 |
Cash paid for early extinguishment of debt | (9,754) | (8,791) | (19,636) |
Distributions to members and noncontrolling interests | (237,160) | (4,620) | (18,743) |
Repurchases of Class A common stock | (500,894) | (81) | (376) |
Exchanges of noncontrolling interest for cash | (2,822) | 0 | 0 |
Dividends paid | (203,834) | (7,307) | (27,899) |
Payment of debt issuance costs | (5,961) | (14,091) | (3,619) |
Borrowings on other debt | 0 | 0 | 42,643 |
Payments on other debt | (1,115) | (1,075) | (38,167) |
Other, net | (1,521) | 397 | 6,408 |
Net cash (used in) provided by financing activities | (1,014,672) | (150,443) | 103,162 |
Increase (decrease) in cash, cash equivalents and restricted cash | 181,550 | (7,210) | 14,657 |
Balance, beginning of year | 125,705 | 132,915 | 118,258 |
Balance, end of year | 307,255 | 125,705 | 132,915 |
Cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 275,281 | 121,176 | 128,835 |
Restricted cash | 0 | 4,529 | 4,080 |
Restricted cash included in Other assets, net | 31,974 | 0 | 0 |
Balance, end of year | 307,255 | 125,705 | 132,915 |
Supplemental cash flow disclosures: | |||
Cash paid for interest, net of $305, $0 and $2,777 capitalized, respectively | 97,964 | 109,043 | 143,134 |
Cash paid for income taxes, net of refunds received | 4,139 | 0 | (64) |
Non-cash investing and financing activities: | |||
Capital expenditures incurred but not yet paid | $ 15,439 | $ 2,931 | $ 30,626 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Costs Capitalized | $ 305 | $ 0 | $ 2,777 |
Organization and Background
Organization and Background | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Background | Organization and Background Red Rock Resorts, Inc. (“Red Rock,” or the “Company”) was formed as a Delaware corporation in 2015 to own an indirect equity interest in and manage Station Casinos LLC (“Station LLC”), a Nevada limited liability company. Station LLC is a gaming, development and management company established in 1976 that owns and operates nine major gaming and entertainment facilities and ten smaller casino properties (three of which are 50% owned) in the Las Vegas regional market. The Company owns all of the outstanding voting interests in Station LLC and has an indirect equity interest in Station LLC through its ownership of limited liability interests in Station Holdco LLC (“Station Holdco,” and such interests, “LLC Units”), which owns all of the economic interests in Station LLC. At December 31, 2021, the Company held 58% of the economic interests and 100% of the voting power in Station Holdco, subject to certain limited exceptions, and is designated as the 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. Impact of the COVID-19 Pandemic During 2020, the global pandemic caused by a new strain of coronavirus (“COVID-19”) had a detrimental impact on the United States and Las Vegas economies and negatively impacted the Company’s business. All of the Company’s Las Vegas properties were temporarily closed on March 17, 2020 in compliance with a statewide emergency order mandating the closure of Nevada casinos. On June 4, 2020, the Company reopened its Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station properties, as well as its Wildfire properties, subject to state-mandated occupancy and other operational restrictions. At December 31, 2021, the Texas Station, Fiesta Henderson and Fiesta Rancho properties had not reopened. The Company will continue to assess the performance of its open properties, as well as the Las Vegas market and the economy as a whole, before considering whether to reopen some or all of the remaining properties. The Company has no current plans to reopen any of these properties in 2022. While the COVID-19 pandemic is ongoing, many of the state-mandated occupancy and other operational restrictions that were first imposed in March 2020 were lifted as of June 1, 2021. Certain operational restrictions continued, including a rule added in late July 2021 requiring all employees and guests to wear face coverings while indoors in public spaces, which was lifted on February 10, 2022. As a result of the pandemic, the temporary closure of all of the Company’s properties from March 17, 2020 through June 3, 2020 and the ongoing closure of three of its properties, the Company’s operating results for the year ended December 31, 2021 are not comparable with those of the prior years presented. A subsidiary of Station LLC managed Graton Resort, a casino in northern California, on behalf of a Native American tribe through February 5, 2021. The property was temporarily closed from March 17, 2020 through June 17, 2020 as a result of the COVID-19 pandemic. The management agreement was originally expected to expire in November 2020 but was extended as a result of the pandemic through February 5, 2021, when the Native American tribe terminated the Company’s management role at the facility. Whether the management agreement provided for an additional extension beyond that date is in dispute. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation Station Holdco and Station LLC are variable interest entities (“VIEs”), of which the Company is the primary beneficiary. 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. Accordingly, the Company consolidates the financial position and results of operations of Station LLC and its consolidated subsidiaries and Station Holdco, and presents the interests in Station Holdco not owned by Red Rock within noncontrolling interest in the consolidated financial statements. Substantially all of the Company’s assets and liabilities represent the assets and liabilities of Station Holdco and Station LLC, other than assets and liabilities related to income taxes and the tax receivable agreement. Investments in all 50% or less owned affiliated companies are accounted for using the equity method. All significant intercompany accounts and transactions have been eliminated. Noncontrolling Interest in Station Holdco Noncontrolling interest in Station Holdco represents the LLC Units held by certain owners who held such units prior to the Company’s 2016 initial public offering (the “IPO” and such owners, the “Continuing Owners”). Noncontrolling interest is reduced when Continuing Owners exchange their LLC Units, along with an equal number of shares of Class B common stock, for shares of Class A common stock. The noncontrolling interest holders’ ownership percentage of LLC Units is increased when LLC Units held by Red Rock are repurchased by Station Holdco, typically in connection with the Company’s repurchases of its issued and outstanding shares of its Class A common stock. The ownership of the LLC Units is summarized as follows: December 31, 2021 December 31, 2020 Units Ownership % Units Ownership % Red Rock 64,425,248 58.4 % 71,228,168 60.7 % Noncontrolling interest holders 45,985,804 41.6 % 46,085,804 39.3 % Total 110,411,052 100.0 % 117,313,972 100.0 % The Company uses monthly weighted-average LLC Unit ownership to calculate the pretax income or loss and other comprehensive income or loss of Station Holdco attributable to Red Rock and the noncontrolling interest holders. Station Holdco equity attributable to Red Rock and the noncontrolling interest holders is rebalanced, as needed, to reflect LLC Unit ownership at period end. For the year ended December 31, 2021, rebalancing was due primarily to Station Holdco’s repurchase of LLC Units from Red Rock in connection with the Company’s repurchases of Class A shares. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value Measurements For assets and liabilities accounted for or disclosed at fair value, the Company utilizes the fair value hierarchy established by the accounting guidance for fair value measurements and disclosures to categorize the inputs to valuation techniques used to measure fair value into three levels. The three levels of inputs are as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The accounting guidance for fair value measurements and disclosures also provides the option to measure certain financial assets and liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to measure any financial assets or liabilities at fair value that are not required to be measured at fair value. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value primarily because of the short maturities of these instruments. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and investments with an original maturity of 90 days or less. Restricted Cash At December 31, 2021, restricted cash consisted of land sale proceeds of $32.0 million held by a qualified intermediary for potential use in a like-kind exchange transaction pursuant to Section 1031 of the Internal Revenue Code, which is classified as a noncurrent asset within Other assets, net on the Company’s Consolidated Balance Sheet. At December 31, 2020, restricted cash consisted of reserve funds for the Company’s condominium operations at Palms Casino Resort, which the Company sold on December 17, 2021. Receivables, Net and Credit Risk 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. Receivables are initially recorded at cost and an allowance for credit losses is maintained to reduce receivables to their carrying amount, which approximates fair value. The allowance is based on an expected loss model and is estimated based on a specific review of customer accounts, historical collection experience, the age of the receivable and other relevant factors. Accounts are written off when management deems the account to be uncollectible, and recoveries of accounts previously written off are recorded when received. At December 31, 2021 and 2020, the allowance for credit losses was $7.3 million and $8.2 million, respectively. Management believes there are no significant concentrations of credit risk. Inventories Inventories primarily represent food and beverage items and retail merchandise which are stated at the lower of cost or net realizable value. Cost is determined on a weighted-average basis. Assets Held for Sale The Company classifies assets as held for sale when a sale is probable of completion within one year and the asset or asset group meets all of the accounting requirements to be classified as held for sale. Assets held for sale and any related liabilities are presented as single asset and liability amounts on the balance sheet with a valuation allowance, if necessary, to reduce the carrying amount of the net assets to the lower of carrying amount or estimated fair value less cost to sell. Estimates are required to determine the fair value and the related disposal costs. The estimated fair value is generally based on market comparables, solicited offers or a discounted cash flow model. In subsequent periods, the valuation allowance may be adjusted based on changes in management’s estimate of fair value less cost to sell. Depreciation and amortization of long-lived assets are not recorded during the period in which such assets are classified as held for sale. At December 31, 2021, assets held for sale represented undeveloped land in Las Vegas. At December 31, 2020, assets held for sale represented undeveloped land in Reno that was sold in 2021. In the second quarter of 2021, two parcels of land with a carrying amount of $24.3 million that were previously classified as held for sale were reclassified to Land held for development as of December 31, 2020 because they no longer met the held for sale criteria. In December 2021, the Company sold all of its equity interests in Palms Casino Resort (“Palms”) to a third-party buyer for aggregate consideration of $650.0 million. The transaction resulted in a loss on sale of $177.7 million, which included an asset impairment charge to reduce the carrying amount of Palms’ net assets to their estimated fair value less costs to sell. For the years ended December 31, 2021, 2020 and 2019, Palms generated net revenues of $18.8 million, $56.6 million and $278.8 million, respectively, and pretax losses of $206.1 million (including the loss on sale), $98.3 million and $157.4 million, respectively. Property and Equipment Property and equipment is initially recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, or for leasehold improvements, the shorter of the estimated useful life of the asset or the lease term, as follows: Buildings and improvements 10 to 45 years Furniture, fixtures and equipment 3 to 10 years Costs of major improvements are capitalized, while costs of normal repairs and maintenance are charged to expense as incurred. Construction in progress is related to the construction or development of property and equipment that has not yet been placed in service for its intended use. Depreciation and amortization of property and equipment commences when the asset is placed in service. When an asset is retired or otherwise disposed, the related cost and accumulated depreciation are removed from the accounts and the gain or loss on disposal is recognized within Write-downs and other, net. The Company makes estimates and assumptions when accounting for capital expenditures. The Company’s depreciation expense is highly dependent on the assumptions made for the estimated useful lives of its assets. Useful lives are estimated by the Company based on its experience with similar assets and estimates of the usage of the asset. Whenever events or circumstances occur which change the estimated useful life of an asset, the Company accounts for the change prospectively. Native American Development Costs The Company incurs certain costs associated with development and management agreements with Native American tribes that are reimbursable by such tribes. These costs are capitalized as long-term assets as incurred, and primarily include costs associated with the acquisition of land and development of the gaming facility. The assets typically are transferred to the Native American tribe when it secures financing or the gaming facility is completed. Upon transfer of the assets to the Native American tribe, any remaining carrying amount that has not yet been recovered from the tribe is reclassified to a long-term receivable. The Company earns a return on the costs incurred for the acquisition and development of Native American development projects. Repayment of the advances and the related return typically is funded from the tribe’s financing, from the cash flows of the gaming facility, or both. Due to the uncertainty surrounding the timing and amount of the stated return, the Company recognizes the return when it is received. The Company evaluates its Native American development costs for impairment whenever events or changes in circumstances indicate that the carrying amount of a project might not be recoverable, taking into consideration all available information. Among other things, the Company considers the status of the project, any contingencies, the achievement of milestones, any existing or potential litigation, and regulatory matters when evaluating its Native American projects for impairment. If an indicator of impairment exists, the Company compares the estimated future cash flows of the project, on an undiscounted basis, to its carrying amount. If the undiscounted expected future cash flows do not exceed the carrying amount, the asset is written down to its estimated fair value, which typically is estimated based on a discounted future cash flow model or market comparables, when available. The Company estimates the undiscounted future cash flows of a Native American development project based on consideration of all positive and negative evidence about the future cash flow potential of the project including, but not limited to, the likelihood that the project will be successfully completed, the status of required approvals, and the status and timing of the construction of the project, as well as current and projected economic, political, regulatory and competitive conditions that may adversely impact the project’s operating results. At December 31, 2021 and 2020, the Company’s Native American development costs were related to development and management agreements with the North Fork Rancheria of Mono Indians. See Note 5 for additional information. Goodwill The Company tests its goodwill for impairment annually as of October 1, and whenever events or circumstances indicate that it is more likely than not that impairment may have occurred. Impairment testing for goodwill is performed at the reporting unit level, and each of the Company’s operating properties is considered a separate reporting unit. When performing its goodwill impairment testing, the Company either conducts a qualitative assessment to determine whether it is more likely than not that the asset is impaired, or elects to bypass this qualitative assessment and perform a quantitative test for impairment. Under the qualitative assessment, the Company considers both positive and negative factors, including macroeconomic conditions, industry events, financial performance and other changes in facts and circumstances, and makes a determination of whether it is more likely than not that the fair value of goodwill is less than its carrying amount. If, after assessing the qualitative factors, the Company determines it is more likely than not the asset is impaired, it then performs a quantitative test in which the estimated fair value of the reporting unit is compared with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its estimated fair value, an impairment loss is recognized in an amount equal to the excess, limited to the amount of goodwill allocated to the reporting unit. When performing the quantitative test, the Company estimates the fair value of each reporting unit using the expected present value of future cash flows along with value indications based on current valuation multiples of the Company and comparable publicly traded companies. The estimation of fair value involves significant judgment by management. Future cash flow estimates are, by their nature, subjective and actual results may differ materially from such estimates. Cash flow estimates are based on the current regulatory, political and economic climates, recent operating information and projections. Such estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, competition, events affecting various forms of travel and access to the Company’s properties, and other factors. If the Company’s estimates of future cash flows are not met, it may have to record impairment charges in the future. Indefinite-lived Intangible Assets The Company’s indefinite-lived intangible assets primarily represent brands. The fair value of the Company’s brands is estimated using a derivation of the income approach to valuation, based on estimated royalties avoided through ownership of the assets, utilizing market indications of fair value. The Company tests its indefinite-lived intangible assets for impairment annually as of October 1, and whenever events or circumstances indicate that it is more likely than not that an asset is impaired. Indefinite-lived intangible assets are not amortized unless it is determined that an asset’s useful life is no longer indefinite. The Company periodically reviews its indefinite-lived assets to determine whether events and circumstances continue to support an indefinite useful life. If an indefinite-lived intangible asset no longer has an indefinite life, the asset is tested for impairment and is subsequently accounted for as a finite-lived intangible asset. Finite-lived Intangible Assets The Company’s finite-lived intangibles primarily include assets related to its customer relationships and management contracts. The Company amortizes its finite-lived intangible assets over their estimated useful lives using the straight-line method. The Company periodically evaluates the remaining useful lives of its finite-lived intangible assets to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company’s customer relationship intangible assets represent the value associated with its rated casino guests. The management contract intangible assets represent the value associated with agreements under which the Company provides, or will provide, management services to various casino properties, primarily a Native American casino project that is currently under development. The Company amortizes its management contract intangible assets over their expected useful lives beginning when the property commences operations and management fees are being earned. Impairment of Long-lived Assets The Company reviews the carrying amounts of its long-lived assets, other than goodwill and indefinite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability is evaluated by comparing the estimated future cash flows of the asset, on an undiscounted basis, to its carrying amount. If the undiscounted estimated future cash flows exceed the carrying amount, no impairment is indicated. If the undiscounted estimated future cash flows do not exceed the carrying amount, impairment is measured based on the difference between the asset’s estimated fair value and its carrying amount. To estimate fair values, the Company typically uses a discounted cash flow model or market comparables. The Company’s long-lived asset impairment tests are performed at the reporting unit level. The estimation of undiscounted future cash flows involves significant judgment by management. The Company’s estimates of future cash flows expected to be generated by an asset or asset group are based on the current regulatory, political and economic climates, recent operating information and projections. Such estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, changes in consumer preferences, or events affecting various forms of travel and access to its properties. If the Company’s estimates of future cash flows are not met, it may have to record impairment charges in the future. As of December 31, 2021 and 2020, the Company’s Texas Station, Fiesta Henderson and Fiesta Rancho properties had not reopened, and management determined the ongoing closures to be an indicator of potential impairment at those respective reporting unit levels. Based on the undiscounted expected future cash flows, no impairment was recorded. The Company will continue to assess the performance of its open properties, as well as the Las Vegas market and the economy as a whole, before considering whether to reopen some or all of the remaining properties, and it has no current plans to reopen any of these properties in 2022. In the first quarter of 2021, the Company recognized an asset impairment charge related to the sale of Palms. See Assets Held for Sale above for additional information. Land Held for Development At December 31, 2021, the Company owned approximately 264 acres of land comprising six strategically-located parcels in Las Vegas and Reno, each of which is zoned for casino gaming and other uses. Debt Discounts and Debt Issuance Costs Debt discounts and costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense using the effective interest method over the expected term of the related debt agreements. Costs incurred in connection with the issuance of revolving lines of credit are presented in Other assets, net on the Consolidated Balance Sheets. All other capitalized costs incurred in connection with the issuance of long-term debt are presented as a direct reduction of Long-term debt, less current portion on the Consolidated Balance Sheets. Derivative Instruments The Company has previously used interest rate swaps to hedge its exposure to variability in expected future cash flows related to interest payments. At December 31, 2021, the Company had no interest rate swaps. At December 31, 2020, the Company had interest rate swaps, none of which were designated in cash flow hedging relationships. The Company recorded all derivatives at fair value, which was determined using widely accepted valuation techniques, including discounted cash flow analyses and credit valuation adjustments, as well as observable market-based inputs such as forward interest rate curves. The Company did not offset derivative asset and liability positions when interest rate swap agreements were held with the same counterparty. The changes in fair value of interest rate swaps and related pretax gains and losses are presented in Change in fair value of derivative instruments in the Consolidated Statements of Operations in the period in which the change occurs, and the cash flows for these instruments are classified within investing activities in the Consolidated Statements of Cash Flows. Leases The Company leases certain equipment, buildings, land and other assets used in its operations. The Company determines whether an arrangement is or contains a lease at inception, and determines the classification of the lease based on facts and circumstances as of the lease commencement date. For leases with an initial term greater than twelve months, the Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For leases with an initial term of twelve months or less, the Company has elected not to recognize ROU assets or lease liabilities. The Company measures its ROU assets and lease liabilities at the lease commencement date based on the present value of lease payments over the lease term. To calculate the present value of lease payments for leases that do not contain an implicit interest rate, the Company uses its incremental borrowing rate based on information available at the lease commencement date. For leases under which the Company has options to extend or terminate the lease, such options are included in the lease term when it is reasonably certain that the Company will exercise the option. The Company includes operating lease ROU assets within Other assets, net on its Consolidated Balance Sheets. Operating lease liabilities are included in Other accrued liabilities and Other long-term liabilities. For arrangements that contain both lease and non-lease components under which the Company is the lessee, the components are not combined for accounting purposes. The Company’s leases do not include any significant residual value guarantees, restrictions or covenants. For operating leases with fixed rental payments or variable rental payments based on an index or rate, the Company recognizes lease expense on a straight-line basis over the lease term. For operating leases with variable payments not based on an index or rate, the Company recognizes the variable lease expense in the period in which the obligation for the payment is incurred. The Company’s variable lease payments not based on an index or rate are primarily related to short-term leases for slot machines under which lease payments are based on a percentage of the revenue earned. The Company leases space within its properties to third-party tenants, primarily food and beverage outlets and movie theaters. The Company also leases space to tenants within commercial and industrial buildings located on certain land held for development. All of the Company’s tenant leases are classified as operating leases and do not contain options for the lessee to purchase the underlying real property. Revenue from tenant leases is included in Other revenues in the Company’s Consolidated Statements of Operations. Lease payments from tenants at the Company’s properties typically include variable rent based on a percentage of the tenant’s net sales, and may also include a fixed base rent amount, which may increase by a rate or index over time. The Company recognizes variable rental income in the period in which the right to receive such rental income is established according to the lease agreements and base rental income on a straight-line basis over the lease term. Lease payments from the Company’s tenants at commercial and industrial buildings are typically based on a fixed rental amount, which may increase by a rate or index over time. Non-lease components within tenant lease agreements, which primarily comprise utilities, property taxes and common area maintenance charges, are included within operating lease income. Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss), which includes all other non-owner changes in equity. Components of the Company’s comprehensive income (loss) are reported in the Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Stockholders’ Equity, and accumulated other comprehensive loss is included in stockholders’ equity on the Consolidated Balance Sheets. Revenues 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 accounts for its gaming and non-gaming contracts on a portfolio basis. This practical expedient is applied 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. 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 slot play. 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 revenue 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 revenue is recognized when the goods or services are provided to the guest. Guests may also receive discretionary complimentaries that require the transaction price to be allocated to each performance obligation on a relative standalone selling price basis. Non-gaming revenue also includes 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 $144.3 million, $107.1 million and $228.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. Management Fee Revenue Management fee revenue primarily represents fees earned from the Company’s management agreement with a Native American tribe. 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 the management services are performed because there is a consistent measure throughout the contract period that reflects the value to the Native American tribe each month. The Company managed Graton Resort & Casino (“Graton Resort”) on behalf of the Federated Indians of Graton Rancheria through February 5, 2021. For the years ended December 31, 2021, 2020 and 2019, management fees from Graton Resort totaled $7.8 million, $77.4 million and $85.6 million, respectively. Player Rewards Program The Company has a player rewards program (the “Rewards Program”) that allows customers to earn points based on their slot play. Guests may accumulate loyalty points over time that may be redeemed at their discretion under the terms of the Rewards Program. Loyalty points may be redeemed for cash, slot play, food, beverage, rooms, entertainment and merchandise at all of the Company’s Las Vegas area properties. When guests earn points under the Rewards Program, the Company recognizes a liability for future performance obligations. The Rewards Program point liability represents deferred gaming revenue, which is measured at the redemption value of loyalty points earned under the Rewards Program that management ultimately believes will be redeemed. The recognition of the Rewards Program point liability reduces casino revenue. When points are redeemed for cash, the point liability is reduced for the amount of cash paid out. When points are redeemed for 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. Loyalty points are generally earned and redeemed continually over time. As a result, the loyalty point liability balance remains relatively constant. The loyalty point liability is presented within Other accrued liabilities on the Consolidated Balance Sheets. Slot Machine Jackpots The Company does not accrue base jackpots if it is not legally obligated to pay the jackpot. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following (amounts in thousands): December 31, 2021 2020 Land $ 219,256 $ 271,603 Buildings and improvements 2,256,826 3,001,283 Furniture, fixtures and equipment 633,210 800,257 Construction in progress 69,129 8,911 3,178,421 4,082,054 Accumulated depreciation (1,168,813) (1,224,081) Property and equipment, net $ 2,009,608 $ 2,857,973 Depreciation expense was as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Depreciation expense $ 155,966 $ 223,846 $ 213,642 At December 31, 2021 and 2020, substantially all of the Company’s property and equipment was pledged as collateral for its long-term debt. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill, net of accumulated impairment losses of $1.2 million, was $195.7 million at December 31, 2021 and 2020. The Company’s goodwill is primarily related to the Las Vegas operations segment. The Company’s intangibles, other than goodwill, consisted of the following (amounts in thousands): December 31, 2021 Estimated useful life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Assets Brands Indefinite $ 77,200 $ — $ 77,200 License rights Indefinite 300 — 300 Customer relationships 15 22,800 (16,019) 6,781 Management contracts 7 - 20 4,000 (1,109) 2,891 Intangible assets $ 104,300 $ (17,128) $ 87,172 December 31, 2020 Estimated useful life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Assets Brands Indefinite $ 77,200 $ — $ 77,200 License rights Indefinite 300 — 300 Customer relationships 15 23,600 (14,726) 8,874 Management contracts 7 - 20 4,000 (1,004) 2,996 Condominium rental contracts 20 9,000 (1,913) 7,087 Trademarks 15 6,000 (1,700) 4,300 Beneficial leases 6 237 (177) 60 Intangible assets 120,337 (19,520) 100,817 Liabilities Below market leases 15 2,195 (615) 1,580 Net intangibles $ 118,142 $ (18,905) $ 99,237 The condominium rental contracts, trademarks, beneficial leases and below market leases were disposed in connection with the sale of Palms on December 17, 2021. Amortization expense for intangibles was as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Amortization expense $ 1,825 $ 7,545 $ 8,569 Estimated annual amortization expense for intangibles for each of the next five years is as follows (amounts in thousands): Years Ending December 31, 2022 $ 1,625 2023 1,625 2024 1,911 2025 1,911 2026 1,092 |
Native American Development
Native American Development | 12 Months Ended |
Dec. 31, 2021 | |
Development Disclosure [Abstract] | |
Native American Development | Native American Development 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 Class III slot machines, approximately 40 table games and several restaurants, and future development costs of the project are expected to be between $350 million and $400 million. Development of the North Fork Project is subject to certain governmental and regulatory approvals, including, without limitation, approval of the management agreement by the Chair 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, and has contributed significant financial support to the North Fork Project. Through December 31, 2021, the Company has paid approximately $49.2 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 the project’s financing or from the Mono’s cash flows from the North Fork Project’s operations; 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 December 31, 2021, the carrying amount of the advances was $34.1 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 expects to 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 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 six 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 75% to 85% at December 31, 2021. 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 December 31, 2021 of each of the critical milestones necessary to complete the North Fork Project. 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 (the “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 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. In April 2021, the Mono received an issues letter from the NIGC identifying issues to be addressed prior to approval of the Management Agreement. Approval of the Management Agreement by the NIGC is expected to occur following the Mono’s response to the issues 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 have all been amended to restructure the timing of certain payments due to delays in the development of the North Fork Project. Following is a discussion of the unresolved legal matter related to the North Fork Project. 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 Secretary of the Interior’s determination that gaming on the North Fork Site would be in the best interest of the Mono and not detrimental to the surrounding community. The complaint seeks to vacate and set aside the Governor’s concurrence and was stayed from December 2016 to September 2021, when the Supreme Court of California denied the Mono’s and the State of California’s petition for review in Stand Up for California! v. Brown . As a result of the denial, litigation of this matter has resumed. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consisted of the following (amounts in thousands): December 31, 2021 2020 Contract and customer-related liabilities: Rewards Program liability $ 12,711 $ 17,465 Advance deposits and future wagers 15,897 11,854 Unpaid wagers, outstanding chips and other customer-related liabilities 21,963 18,248 Other accrued liabilities: Accrued payroll and related 30,019 41,026 Accrued gaming and related 25,372 20,316 Construction payables and equipment purchase accruals 15,437 3,710 Operating lease liabilities, current portion 2,976 2,936 Interest rate swaps — 11,758 Other 22,734 18,764 $ 147,109 $ 146,077 Contract Balances Customer contract liabilities related to future performance obligations consist of the Rewards Program liability, advance deposits on goods or services yet to be provided and wagers for future sporting events. 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. The Company also has other customer-related liabilities that primarily include unpaid wagers and outstanding chips. 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. Fluctuations in contract liabilities and other customer-related liabilities are typically a result of normal operating activities. The Company had no material contract assets at December 31, 2021 and 2020, respectively. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Long-term debt consisted of the following (amounts in thousands): December 31, 2021 2020 Term Loan B Facility due February 7, 2027, interest at a margin above LIBOR or base rate (2.50% at December 31, 2021 and 2020), net of unamortized discount and deferred issuance costs of $24.9 million and $29.5 million at December 31, 2021 and 2020, respectively $ 1,463,731 $ 1,470,944 Term Loan A Facility due February 7, 2025, interest at a margin above LIBOR or base rate (1.61% and 1.90% at December 31, 2021 and 2020, respectively), net of unamortized discount and deferred issuance costs of $1.6 million and $2.2 million at December 31, 2021 and 2020, respectively 170,819 179,712 Revolving Credit Facility due February 7, 2025, interest at a margin above LIBOR or base rate — — 4.625% Senior Notes due December 1, 2031, net of unamortized deferred issuance costs of $6.0 million at December 31, 2021 494,015 — 4.50% Senior Notes due February 15, 2028, net of unamortized discount and deferred issuance costs of $6.6 million and $7.6 million at December 31, 2021 and 2020, respectively 684,170 683,257 5.00% Senior Notes due October 1, 2025, net of unamortized deferred issuance costs of $4.1 million at December 31, 2020 — 526,260 Other long-term debt, weighted-average interest of 3.82% and 3.83% at December 31, 2021 and 2020, respectively, net of unamortized discount and deferred issuance costs of $0.3 million and $0.4 million at December 31, 2021 and 2020, respectively 40,789 41,834 Total long-term debt 2,853,524 2,902,007 Current portion of long-term debt (25,921) (22,844) Long-term debt, net $ 2,827,603 $ 2,879,163 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 Term Loan B Facility bears interest at a rate per annum, at Station LLC’s option, equal to either LIBOR plus 2.25% or base rate plus 1.25%. The Term Loan A Facility and Revolving Credit Facility bear interest at a rate per annum, at Station LLC’s option, equal to either LIBOR plus an amount ranging from 1.50% to 1.75% or base rate plus an amount ranging from 0.50% to 0.75%, depending on whether Station LLC’s consolidated total leverage ratio exceeds 4.00 to 1.00. Station LLC is required to make quarterly principal payments of $3.8 million on the Term Loan B Facility and $2.4 million on the Term Loan A Facility on the last day of each quarter, unless otherwise reduced by prepayments. Station LLC also is required to make mandatory payments of amounts outstanding under the Credit Facility with the proceeds of certain casualty events, debt issuances, asset sales and equity issuances and, depending on its consolidated total leverage ratio, Station LLC is required to apply a portion of its excess cash flow to repay amounts outstanding under the Term Loan B Facility, which would reduce future quarterly principal payments. The Company is not required to make an excess cash flow payment in 2022. Borrowings under the Credit Facility are guaranteed by all of Station LLC’s existing and future material restricted subsidiaries and are secured by pledges of all of the equity interests in Station LLC and its material restricted subsidiaries, a security interest in substantially all of the personal property of Station LLC and the subsidiary guarantors, and mortgages on the real property and improvements owned or leased by certain of Station LLC’s subsidiaries. The Credit Facility contains a number of customary covenants that, among other things, restrict, subject to certain exceptions, the ability of Station LLC and the subsidiary guarantors to incur debt; create a lien on collateral; engage in mergers, consolidations or asset dispositions; pay distributions; make investments, loans or advances; engage in certain transactions with affiliates or subsidiaries; or modify their lines of business. The Credit Facility also includes certain financial ratio covenants that Station LLC is required to maintain throughout the term of the Credit Facility and measure as of the end of each quarter. At December 31, 2021, these financial ratio covenants included an interest coverage ratio of not less than 2.50 to 1.00 and a maximum consolidated total leverage ratio, with step-downs over the term of the Credit Facility, ranging from 6.50 to 1.00 at December 31, 2021 to 5.25 to 1.00 at December 31, 2023 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 within 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. Management believes the Company was in compliance with all applicable covenants at December 31, 2021. At December 31, 2021, Station LLC’s borrowing availability under its Revolving Credit Facility, subject to continued compliance with the terms of the Credit Facility, was $1.0 billion, which was net of $29.4 million in outstanding letters of credit and similar obligations. Discontinuation of LIBOR The interest rate per annum applicable to loans under the Credit Facility is, at the Company’s option, either LIBOR plus a margin or a base rate plus a margin. Certain U.S. dollar LIBOR rates and all non-U.S. dollar LIBOR rates were discontinued as of December 31, 2021. However, the discontinuation date of the most commonly used tenors for U.S. dollar LIBOR (overnight, and one, three, six and 12 months) has been extended to June 30, 2023. The LIBOR rates applicable to loans under the Credit Facility are included in the group of U.S. dollar rates that will be discontinued on June 30, 2023. The Credit Facility permits the administrative agent to approve a comparable successor base rate when LIBOR is discontinued, but there can be no assurances as to what the alternative base rate may be and whether such base rate will be more or less favorable than LIBOR or any other unforeseen impacts of the potential discontinuation of LIBOR. Management does not expect the transition away from LIBOR to have material impact on its financial condition or results of operations. 4.625% Senior Notes On November 26, 2021, Station LLC issued $500.0 million in aggregate principal amount of 4.625% Senior Notes due 2031, pursuant to an indenture dated as of November 26, 2021, among Station LLC, the guarantors party thereto and Computershare Trust Company, National Association, as Trustee. The net proceeds of the sale of the 4.625% Senior Notes were used, together with borrowings under the Revolving Credit Facility, to (i) make a distribution of approximately $344 million to holders of LLC Units, including the Company, (ii) pay the purchase price for shares of Class A common stock tendered in the equity tender offer described in Note 10, (iii) pay fees and costs associated with such transactions and (iv) for general corporate purposes. Interest on the 4.625% Senior Notes is paid every six months in arrears on June 1 and December 1, commencing June 1, 2022. The 4.625% Senior Notes and the guarantees of such notes by certain of Station LLC’s subsidiaries are general senior unsecured obligations. On or after June 1, 2031 (the date that is six months prior to the maturity date of the notes), Station LLC may redeem all or a portion of the 4.625% Senior Notes at a redemption price equal to 100.00% of the principal amount redeemed, plus accrued and unpaid interest, if any, to the redemption date. The indenture governing the 4.625% Notes requires Station LLC to offer to purchase the 4.625% Notes at a purchase price in cash equal to 101.00% of the aggregate principal amount outstanding plus accrued and unpaid interest thereon if Station LLC experiences certain change of control events (as defined in the indenture). The indenture also requires Station LLC to make an offer to repurchase the 4.625% Notes at a purchase price equal to 100.00% of the principal amount of the purchased notes if it has excess net proceeds (as defined in the indenture) from certain asset sales. The indenture governing the 4.625% Notes contains a number of customary covenants that, among other things and subject to certain exceptions, restrict the ability of Station LLC and its restricted subsidiaries to incur or guarantee additional indebtedness; issue disqualified stock or create subordinated indebtedness that is not subordinated to the 4.625% Notes; create liens; engage in mergers, consolidations or asset dispositions; enter into certain transactions with affiliates; engage in lines of business other than its core business and related businesses; or make investments or pay distributions (other than customary tax distributions). These covenants are subject to a number of exceptions and qualifications as set forth in the indenture. The indenture governing the 4.625% Notes also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on such 4.625% Notes to be declared due and payable. 4.50% Senior Notes On February 7, 2020, Station LLC issued $750.0 million in aggregate principal amount of 4.50% Senior Notes due 2028 pursuant to an indenture dated as of February 7, 2020, among Station LLC, the guarantors party thereto and Wells Fargo Bank, National Association, as Trustee. The net proceeds of the sale of the 4.50% Senior Notes were used (i) to repay a portion of the amounts outstanding under the Credit Facility, (ii) to pay fees and costs associated with the offering and (iii) for general corporate purposes. Interest on the 4.50% Senior Notes is paid every six months in arrears on February 15 and August 15, commencing on August 15, 2020. The 4.50% Senior Notes and the guarantees of such notes by certain of Station LLC’s subsidiaries are general senior unsecured obligations. On or after February 15, 2023, Station LLC may redeem all or a portion of the 4.50% Senior Notes at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest and additional interest to the applicable redemption date: Years Beginning February 15, Percentage 2023 102.250 % 2024 101.125 % 2025 and thereafter 100.000 % The indenture governing the 4.50% Senior Notes requires Station LLC to offer to purchase the 4.50% Senior Notes at a purchase price in cash equal to 101.00% of the aggregate principal amount outstanding plus accrued and unpaid interest thereon if Station LLC experiences certain change of control events (as defined in the indenture). The indenture also requires Station LLC to make an offer to repurchase the 4.50% Senior Notes at a purchase price equal to 100.00% of the principal amount of the purchased notes if it has excess net proceeds (as defined in the indenture) from certain asset sales. The indenture governing the 4.50% Senior Notes contains a number of customary covenants that, among other things and subject to certain exceptions, restrict the ability of Station LLC and its restricted subsidiaries to incur or guarantee additional indebtedness; issue disqualified stock or create subordinated indebtedness that is not subordinated to the 4.50% Senior Notes; create liens; engage in mergers, consolidations or asset dispositions; enter into certain transactions with affiliates; engage in lines of business other than its core business and related businesses; or make investments or pay distributions (other than customary tax distributions). These covenants are subject to a number of exceptions and qualifications as set forth in the indenture. The indenture governing the 4.50% Senior Notes also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on such 4.50% Senior Notes to be declared due and payable. 5.00% Senior Notes In September 2017, Station LLC issued $550.0 million in aggregate principal amount of 5.00% Senior Notes due October 1, 2025. During the year ended December 31, 2021, Station LLC redeemed all of the remaining outstanding principal amount of its 5.00% Senior Notes, which was funded using borrowings under the Revolving Credit Facility and cash on hand. Station LLC recognized a $13.5 million loss on debt extinguishment related to the 5.00% Senior Notes redemption, which included a redemption premium of $9.8 million and a write-off of $3.7 million in unamortized deferred issuance costs. Other Long-term Debt Other long-term debt primarily represents a term loan agreement, which matures in December 2025. The term loan is secured by the Company’s corporate office building and is not guaranteed by Station LLC or its restricted subsidiaries under the Credit Facility. Principal Maturities As of December 31, 2021, scheduled principal maturities of Station LLC’s long-term debt for each of the next five years and thereafter were as follows (amounts in thousands): Years Ending December 31, 2022 $ 25,921 2023 25,965 2024 26,011 2025 196,524 2026 15,350 Thereafter 2,603,127 2,892,898 Debt discounts and issuance costs (39,374) $ 2,853,524 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments From time to time, the Company may use interest rate swaps or other derivative instruments to manage its exposure to cash flow variability related to interest rate movements on its variable-rate debt. The Company does not designate derivative financial instruments in cash flow hedging relationships nor use them for trading or speculative purposes. Station LLC was party to interest rate swap agreements under which it received variable-rate payments in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying notional amount, until such agreement expired on July 8, 2021. As of December 31, 2020, derivative instruments were presented at fair value, exclusive of accrued interest, in Other accrued liabilities on the Consolidated Balance Sheet. Certain of the expired interest rate swaps were previously designated in cash flow hedging relationships until their dedesignation in June 2017. Accordingly, associated cumulative deferred net gains, which were previously recognized in Accumulated other comprehensive loss, were amortized as a reduction of interest expense through July 2020 as the hedged interest payments occurred. During the years ended December 31, 2020 and 2019, deferred net gains reclassified from Accumulated other comprehensive loss to Interest expense, net in the Consolidated Statements of Operations were $1.4 million and $2.8 million, respectively. No deferred net gains were similarly reclassified during the year ended December 31, 2021. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements At December 31, 2021, the Company had no financial assets or liabilities measured at fair value on a recurring basis. At December 31, 2020, the Company had no financial assets measured at fair value on a recurring basis. The Company measured the fair value of its interest rate swaps, its only liability measured at fair value on a recurring basis at December 31, 2020, using the fair value hierarchy described in Note 2. At December 31, 2020, the fair value of the interest rate swaps was $11.8 million, which was determined using Level 2 inputs (significant unobservable inputs) under the fair value hierarchy. The estimated fair value of the Company’s long-term debt compared with its carrying amount is presented below (amounts in millions): December 31, 2021 2020 Aggregate fair value $ 2,887 $ 2,936 Aggregate carrying amount 2,854 2,902 The estimated fair value of the Company’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 hierarchy. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company has two classes of common stock. The Company’s Certificate of Incorporation authorizes 500,000,000 shares of Class A common stock, par value $0.01 per share and 100,000,000 shares of Class B common stock, par value $0.00001 per share. The Certificate of Incorporation also authorizes up to 100,000,000 shares of preferred stock, par value of $0.01 per share, none of which have been issued. The holders of the Company’s Class A common stock hold 100% of the economic interests in the Company. Class A Common Stock Voting Rights The holders of Class A common stock are entitled to one vote per share on all matters to be voted upon by the stockholders. Holders of shares of the Company’s Class A common stock and Class B common stock vote together as a single class on all matters presented to the Company’s stockholders for their vote or approval, except as otherwise required by applicable law or the Certificate of Incorporation. Dividend Rights Subject to preferences that may be applicable to any outstanding preferred stock, the holders of Class A common stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by the board of directors out of funds legally available therefor. The declaration, amount and payment of any future dividends on shares of Class A common stock will be at the sole discretion of the board of directors and it may increase, reduce or discontinue entirely the payment of such dividends at any time. The board of directors may take into account general economic and business conditions, the Company’s financial condition and operating results, its available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions and implications on the payment of dividends to stockholders or the payment of distributions by subsidiaries (including Station Holdco) to the Company, and such other factors as the board of directors may deem relevant. Red Rock is a holding company. Other than assets and liabilities related to income taxes and the tax receivable agreement, its only assets are its equity interest in Station Holdco and its voting interest in Station LLC. Red Rock has no operations outside of its management of Station LLC. The Company intends to cause Station Holdco to make distributions in an amount sufficient to cover cash dividends declared, if any. If Station Holdco makes such distributions to Red Rock, the other holders of LLC Units will be entitled to receive proportionate distributions based on their percentage ownership of Station Holdco. The existing debt agreements of Station LLC, including those governing the Credit Facility, contain restrictive covenants that limit its ability to make cash distributions. Because the only asset of Station Holdco is its interest in Station LLC, the limitations on such distributions will effectively limit the ability of Station Holdco to make distributions to Red Rock, and any financing arrangements that the Company or any of its subsidiaries enter into in the future may contain similar restrictions. Station Holdco is generally prohibited under Delaware law from making a distribution to a member to the extent that, at the time of the distribution, after giving effect to the distribution, liabilities of Station Holdco (with certain exceptions) exceed the fair value of its assets. Subsidiaries of Station Holdco, including Station LLC and its subsidiaries, are generally subject to similar legal limitations on their ability to make distributions to their members or equityholders. Because the Company must pay taxes and make payments under the TRA, amounts ultimately distributed as dividends to holders of Class A common stock may be less than the amounts distributed by Station Holdco to its members on a per LLC Unit basis. In March 2020, the Company declared and paid a quarterly cash dividend of $0.10 per share to Class A common stockholders. No other regular quarterly dividends were paid for the years ended December 31, 2021 or 2020. On February 18, 2022, the Company announced that its board of directors had approved the reinstatement of the Company’s regular quarterly dividend, which had been discontinued since May 2020, and had declared a cash dividend of $0.25 per share of Class A common stock to be paid on March 31, 2022 to shareholders of record as of March 15, 2022. Prior to the payment of the dividend on March 31, 2022, Station Holdco will make a cash distribution to all LLC Unit holders, including the Company, of $0.25 per LLC Unit, a portion of which will be paid to the other unit holders of Station Holdco. Special Dividend In November 2021, the Company declared a special cash dividend of $3.00 per share of Class A common stock to holders of record as of November 23, 2021 (the “Special Dividend”), which was paid on December 22, 2021. Prior to the payment of the Special Dividend, Station Holdco made a cash distribution to all LLC Unit holders, including the Company, of $3.00 per unit. Rights upon Liquidation In the event of liquidation, dissolution or winding-up of Red Rock, whether voluntarily or involuntarily, the holders of Class A common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding. Other Rights The holders of Class A common stock have no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the Class A common stock. The rights, preferences and privileges of holders of Class A common stock will be subject to those of the holders of any shares of preferred stock the Company may issue in the future. Equity Repurchase Program In February 2019, the Company’s board of directors approved an equity repurchase program authorizing the repurchase of up to an aggregate of $150 million of its Class A common stock. In February 2021, the Company’s board of directors extended its approval of the equity repurchase program through December 31, 2022. In September 2021, the board of directors approved an increase in the aggregate amount authorized under the equity repurchase program to $300 million. The Company is not obligated to repurchase any shares under this program. Subject to applicable laws and the provisions of any agreements restricting the Company’s ability to do so, repurchases may be made at the Company’s discretion from time to time through open market purchases, negotiated transactions or tender offers, depending on market conditions and other factors. The Company made no repurchases of Class A common stock pursuant to the repurchase program during the years ended December 31, 2020 and 2019. During the year ended December 31, 2021, the Company repurchased 3,517,043 shares of its Class A common stock for an aggregate price of $142.8 million and a weighted average price per share of $40.59 in open market transactions. At December 31, 2021, the remaining amount authorized for repurchases under the program was $154.4 million. The Class A shares were retired upon repurchase. Equity Tender Offer In December 2021, the Company purchased 6,884,858 shares of its issued and outstanding Class A common stock for an aggregate purchase price of $354.6 million and a price per share of $51.50 pursuant to a "modified Dutch Auction" tender offer, and the shares were retired upon repurchase. The Class A share repurchases made under the tender offer were not a part of the Company’s publicly-announced equity repurchase program. Class B Common Stock Voting Rights The Continuing Owners of Station Holdco hold shares of Class B common stock in an amount equal to the number of LLC Units owned. Although Class B shares have no economic rights, they allow those owners of Station Holdco to exercise voting power at Red Rock, which is the sole managing member of Station Holdco. Each outstanding share of Class B common stock that is held by a holder that, together with its affiliates, owned LLC Units representing at least 30% of the outstanding LLC Units following the IPO and, at the applicable record date, maintains direct or indirect beneficial ownership of at least 10% of the outstanding shares of Class A common stock (determined on an as-exchanged basis assuming that all of the LLC Units were exchanged for Class A common stock) is entitled to ten votes and each other outstanding share of Class B common stock is entitled to one vote. Affiliates of Frank J. Fertitta III, the Company’s Chairman of the Board and Chief Executive Officer, and Lorenzo J. Fertitta, the Company’s Vice Chairman of the Board and a vice president of the Company, hold all of the Company’s issued and outstanding shares of Class B common stock that have ten votes per share. As a result, Frank J. Fertitta III and Lorenzo J. Fertitta, together with their affiliates, control any action requiring the general approval of the Company’s stockholders, including the election of the board of directors, the adoption of amendments to the Certificate of Incorporation and bylaws and the approval of any merger or sale of substantially all of the Company’s assets. Holders of LLC Units are entitled at any time to exchange LLC Units, together with an equal number of shares of Class B common stock, for shares of Class A common stock or for cash, at the Company’s election. Accordingly, as members of Station Holdco entitled to ten votes per share exchange LLC Units, the voting power afforded to them by their shares of Class B common stock will be correspondingly reduced. Exchanges of LLC Units and shares of Class B common stock for shares of Class A common stock are based on an exchange ratio. The exchange ratio is a fraction, the numerator of which is the number of shares of Class A common stock outstanding immediately prior to the applicable exchange and the denominator of which is the number of LLC Units owned by Red Rock and its subsidiaries immediately prior to the applicable exchange. The initial exchange ratio at the IPO date was one share of Class A common stock for each LLC Unit and share of Class B common stock. The exchange ratio is subject to adjustment in the event that the number of outstanding shares of Class A common stock does not equal the number of LLC Units held by Red Rock. At December 31, 2021, the exchange ratio was 0.9535 shares of Class A common stock for each LLC Unit and share of Class B common stock. During the year ended December 31, 2021, a noncontrolling interest holder unaffiliated with Red Rock exchanged 100,000 shares of Class B common stock, together with an equal number of LLC Units, which the Company elected to settle for cash. Holders of Class B common stock exchanged 741,000 and 57,000 shares of such stock, along with an equal number of LLC Units, for an equal number of shares of Class A common stock during the years ended December 31, 2020 and 2019, respectively. Automatic Transfer In the event that any outstanding share of Class B common stock shall cease to be held by a holder of an LLC Unit (including a transferee of an LLC Unit), such share shall automatically be transferred to the Company and thereupon shall be retired. Dividend Rights Class B stockholders will not participate in any dividends declared by the board of directors. Rights upon Liquidation In the event of any liquidation, dissolution, or winding-up of Red Rock, whether voluntary or involuntary, the Class B stockholders will not be entitled to receive any of the Company’s assets. Other Rights The holders of Class B common stock have no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the Class B common stock. The rights, preferences and privileges of holders of Class B common stock will be subject to those of the holders of any shares of preferred stock the Company may issue in the future. Preferred Stock Subject to limitations prescribed by Delaware law and the Certificate of Incorporation, the board of directors is authorized to issue preferred stock and to determine the terms and conditions of the preferred stock, including whether the shares of preferred stock will be issued in one or more series, the number of shares to be included in each series and the powers, designations, preferences and rights of the shares. The board of directors is authorized to designate any qualifications, limitations or restrictions on the shares without any further vote or action by the stockholders. The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of the Company. The Company has no current plan to issue any shares of preferred stock. Accumulated Other Comprehensive Loss The following table presents changes in accumulated other comprehensive loss balances, net of tax and noncontrolling interest (amounts in thousands): Unrealized loss on interest rate swaps Unrecognized pension liability Total Balances, December 31, 2019 $ (174) $ (467) $ (641) Unrealized loss arising during the period — (406) (406) Amounts reclassified into income 178 249 427 Net current-period other comprehensive income (loss) 178 (157) 21 Exchanges of noncontrolling interests for Class A common stock and rebalancing (4) 1 (3) Balances, December 31, 2020 — (623) (623) Unrealized loss arising during the period — (410) (410) Amounts reclassified into income — 1,014 1,014 Net current-period other comprehensive income — 604 604 Exchanges of noncontrolling interests for Class A common stock and rebalancing — 19 19 Balances, December 31, 2021 $ — $ — $ — 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 changes in its ownership of Station Holdco (amounts in thousands): Year Ended December 31, 2021 2020 2019 Net income (loss) attributable to Red Rock Resorts, Inc. $ 241,850 $ (150,397) $ (3,351) Transfers from (to) noncontrolling interests: Exchanges of noncontrolling interests for Class A common stock 598 4,412 370 Rebalancing of ownership percentage between the Company and noncontrolling interests of Station Holdco 137,259 (3,918) (8,361) Net transfers from (to) noncontrolling interests 137,857 494 (7,991) Change from net income (loss) attributable to Red Rock Resorts, Inc. and net transfers from (to) noncontrolling interests $ 379,707 $ (149,903) $ (11,342) |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-based Compensation The Red Rock Resorts, Inc. 2016 Amended and Restated Equity Incentive Plan (the “Equity Incentive Plan”) is designed to attract, retain and motivate employees and to align the interests of those individuals with the interests of the Company. The Equity Incentive Plan was approved by the Company’s stockholders and is administered by the compensation committee or other designated committee of the board of directors (the “Committee”). The Equity Incentive Plan authorizes the Committee to grant share-based compensation awards, including stock options, restricted stock, performance awards, stock appreciation rights and certain other stock-based awards, to eligible participants. The Committee may designate plan participants, determine the types of awards to be granted and the number of shares covered by awards, and set the terms and conditions of awards, subject to limitations set forth in the plan. At December 31, 2021, a total of 23.6 million shares of Class A common stock were reserved for issuance under the plan, of which approximately 12.9 million shares were available to be issued. Stock Options Stock option awards issued under the plan generally vest over a requisite service period of four years and have a term of seven years from the grant date. The exercise price of stock options awarded under the plan is equal to the fair market value of the Company’s stock at the grant date. A summary of stock option activity is presented below: Shares Weighted-average exercise price Weighted-average remaining contractual life (years) Aggregate intrinsic value (amounts in thousands) Outstanding at January 1, 2021 6,310,657 $ 25.80 Granted 1,336,423 29.31 Exercised (a) (1,138,783) 22.16 Forfeited or expired (334,799) 24.92 Antidilution adjustment (b) 389,041 n/m Outstanding at December 31, 2021 6,562,539 $ 25.67 4.1 $ 192,643 Unvested instruments expected to vest 3,179,585 $ 26.21 5.0 $ 91,647 Exercisable at December 31, 2021 3,382,954 $ 25.16 3.3 $ 100,997 ___________________________________ n/m = not meaningful (a) Includes 632,493 options that were not converted into shares due to net share settlements to cover the aggregate exercise price and employee withholding taxes. (b) As a result of the Special Dividend, all outstanding stock option awards were adjusted to decrease the exercise price of the options and increase the number of shares issuable under the awards pursuant to an antidilution provision in the Equity Incentive Plan. The following information is provided for stock options awarded under the plan: Year Ended December 31, 2021 2020 2019 Weighted-average grant date fair value $ 14.60 $ — $ 7.20 Total intrinsic value of stock options exercised (amounts in thousands) $ 23,980 $ 498 $ 1,517 The Company estimates the grant date fair value of stock option awards using the Black-Scholes model. The weighted- average assumptions used by the Company were as follows: Year Ended December 31, 2021 2020 2019 Expected stock price volatility 59.1% n/a 32.2% Expected term (in years) 5.0 n/a 5.0 Risk-free interest rate 0.6% n/a 2.3% Expected dividend yield —% n/a 1.4% ____________________________________ n/a — No stock option awards were granted in 2020. The Company uses the simplified method to estimate the expected term of stock option awards as it does not have sufficient historical exercise data on which to base its estimate. For awards granted in 2021, the expected volatility assumption was estimated based on the Company’s historical stock price volatility for a period equal to the expected term of the award. For awards granted in years prior to 2021, the Company incorporated the historical volatility of comparable public companies into its estimate of expected volatility due to its lack of trading history for a sufficient period of time. The risk-free interest rate is based on the U.S. Treasury yield in effect at the date of grant for a period equal to the award’s expected term. The expected dividend yield is based on the Company’s current annualized dividend as of the grant date and its average daily stock price for the year preceding the option grant. At December 31, 2021, unrecognized share-based compensation cost related to stock options was $19.7 million which is expected to be recognized over a weighted-average period of 2.7 years. Restricted Stock Awards Restricted stock awards issued under the plan generally vest over requisite service periods of two Shares Weighted-average grant date fair value Nonvested at January 1, 2021 368,811 $ 27.19 Granted 153,050 29.33 Vested (90,354) 26.89 Forfeited (39,121) 23.46 Nonvested at December 31, 2021 392,386 $ 28.47 The following information is provided for restricted stock awarded under the plan: Year Ended December 31, 2021 2020 2019 Weighted-average grant date fair value per share $ 29.33 $ 27.22 $ 27.01 Total fair value of shares vested (amounts in thousands) $ 2,430 $ 8,789 $ 2,101 At December 31, 2021, unrecognized share-based compensation cost for restricted stock awards was $4.9 million which is expected to be recognized over a weighted-average period of 2.4 years. Share-based compensation is classified in the same financial statement line items as cash compensation. The following table presents the location of share-based compensation expense in the Consolidated Statements of Operations (amounts in thousands): Year Ended December 31, 2021 2020 2019 Operating costs and expenses: Casino $ 402 $ 321 $ 458 Food and beverage 30 (68) 202 Room 44 12 11 Selling, general and administrative 12,252 10,621 16,177 Total share-based compensation expense $ 12,728 $ 10,886 $ 16,848 |
Write-downs and Other, Net
Write-downs and Other, Net | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Write-downs and Other Charges, Net | Write-downs and Other, Net Write-downs and other, net include various charges and gains related to non-routine transactions, such as net gains or losses on asset disposals, severance, redevelopment and preopening expenses, business innovation and technology enhancements. For the year ended December 31, 2021, write-downs and other, net was a gain of $18.7 million, primarily representing gains on land sales. For the year ended December 31, 2020, write-downs and other, net was a loss of $36.5 million, which included: net losses on asset disposals, including the write-off of assets due to the closure of the Company’s buffets; severance, including insurance benefits through September 2020 for employees who were terminated in connection with the Company’s workforce reduction in May 2020; and asset write-offs related to various technology projects. For the year ended December 31, 2019, write-downs and other, net was a loss of $82.0 million, which included $39.8 million in artist performance agreement |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Red Rock is taxed as a corporation and pays corporate federal, state and local taxes on income allocated to it by 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. Income Tax (Benefit) Expense The components of income tax (benefit) expense were as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Current income taxes: Federal $ 4,874 $ — $ — State and local — — 1 Total current income taxes 4,874 — 1 Deferred income taxes: Federal (74,161) 113,977 (1,721) State and local — 104 (14) Total deferred income taxes (74,161) 114,081 (1,735) Total income tax (benefit) expense $ (69,287) $ 114,081 $ (1,734) A reconciliation of statutory federal income tax, which is the amount computed by multiplying income before tax by the statutory federal income tax rate, to the Company’s provision for income tax is as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Expected U.S. federal income taxes at statutory rate $ 59,964 $ (12,697) $ (1,779) Income attributable to noncontrolling interests (23,726) 5,071 711 Share-based compensation contribution (5,679) (909) (762) Change in valuation allowance (99,997) 119,900 642 Other 151 2,716 (546) Income tax (benefit) expense $ (69,287) $ 114,081 $ (1,734) The Company’s effective tax rate was (24.26)%, (188.68)% and 20.47% for the years ended December 31, 2021, 2020 and 2019, respectively. The Company’s effective tax rate includes the net tax expense associated with remeasuring its deferred tax assets, and related valuation allowances to reflect the enacted federal rate, and apportioned state rate net of federal benefit. Other items impacting the effective tax rate include a rate detriment attributable to the fact that Station Holdco operates as a limited liability company which is not subject to federal income tax. Accordingly, the Company does not recognize income tax provision or benefit on the portion of Station Holdco's earnings or loss attributable to noncontrolling interest holders. The components of deferred tax assets are as follows (amounts in thousands): December 31, 2021 2020 Deferred tax assets: Tax credit carryforwards $ — $ 5,920 Net operating loss carryforwards and other attributes 13,352 81,233 Investment in partnership 84,393 67,559 Payable pursuant to tax receivable agreement 5,703 5,758 Total gross deferred tax assets 103,448 160,470 Valuation allowance (4,823) (160,470) Total deferred tax assets, net of valuation allowance $ 98,625 $ — As a result of the Company’s IPO in 2016 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 743 of the Internal Revenue Code. In addition, the Company has recorded deferred tax assets related to tax attributes including net operating losses, interest limitations and tax credits. At December 31, 2021, the Company had a federal net operating loss carryforward of approximately $60.2 million, which has unlimited carryforward but may have usage limitations in a given year. The Company also had $3.4 million of other pre-tax attributes at December 31, 2021. The Company considers both positive and negative evidence when measuring the need for a valuation allowance. A valuation allowance is not required to the extent that, in management’s judgment, positive evidence exists with a magnitude and duration sufficient to result in a conclusion that it is more likely than not (a likelihood of more than 50%) that the Company’s deferred tax assets will be realized. Historically, the Company recorded a full valuation allowance on the deferred tax asset related only to the LLC units issued from Station Holdco to the Company in the IPO reorganization transactions as the deferred tax asset relating to those units is not expected to be realized unless the Company disposes of its investment in Station Holdco. However, as a result of the economic downturn and uncertainty caused by the COVID-19 pandemic, the Company determined it was more likely than not that the Company’s deferred tax assets would not be realized and during the year ended December 31, 2020, recorded a full valuation allowance. At December 31, 2021 and 2020, the Company recorded a valuation allowance of $4.8 million and $160.5 million, respectively, against the Company’s deferred tax assets. As of each reporting date, the Company considers new evidence, both positive and negative, that could affect the assessment of the future realizability of the Company’s deferred tax assets. As of December 31, 2021, the Company determined there was sufficient positive evidence to conclude that it is more likely than not deferred tax assets of $98.6 million are realizable. Accordingly, the Company recorded a net valuation release of $100.0 million on the basis of the Company’s assessment. The remaining valuation allowance of $4.8 million consisted of the Company’s deferred tax asset related to acquiring its interest in Station Holdco through Station Holdco units issued to the Company in the IPO for which management could not conclude it is more likely than not to be realized. Uncertain Tax Positions The Company recorded $2.2 million of unrecognized tax benefits as of December 31, 2021. The Company does not currently record interest and penalties for unrecognized tax benefits as any recognition would result in a reduction of its net operating loss or other tax attributes and would not result in an underpayment of tax. Further, the Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record a significant liability for unrecognized tax benefits within the next twelve months. The Company files annual income tax returns for Red Rock and Station Holdco in the U.S. federal jurisdiction and California. The Internal Revenue Service (“IRS”) has concluded its examination of Red Rock for the 2016 tax year. Station Holdco has also concluded examination for the 2016 tax year and is currently under examination by the IRS for the 2017 tax year. The Company regularly assesses the likelihood of adverse outcomes resulting from any examinations to determine the adequacy of the Company’s provision for income taxes. The results of the 2016 and 2017 agreed audit adjustments were reflected as a reduction in carryforward net operating losses. The IRS has also issued a Notice of Proposed Adjustment under the 2017 tax year examination. The Company is appealing this proposed adjustment relating to land lease expense in 2017. There are no other ongoing income tax audits as of December 31, 2021. For federal income tax purposes, the years 2018, 2019, and 2020 are subject to examination as the normal three-year statute of limitations would expire three years after the actual filing date of the returns. The Company had the following activity for unrecognized tax benefits (amounts in thousands): Year Ended December 31, 2021 2020 2019 Balance at beginning of year $ 1,237 $ 1,004 $ — Tax positions related to current year additions 1,012 142 519 Additions for tax positions of prior years — 91 485 Balance at end of year $ 2,249 $ 1,237 $ 1,004 Tax Receivable Agreement Pursuant to the election under Section 754 of the Internal Revenue Code, the Company continues to expect to obtain an increase in its share of the tax basis in the net assets of Station Holdco when LLC Units are exchanged by Station Holdco’s noncontrolling interest holders and other qualifying transactions. These increases in tax basis may reduce the amounts that the Company would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. The Company expects to realize these tax benefits based on current projections of taxable income. For the years ended December 31, 2021, 2020 and 2019, exchanges of LLC Units and Class B common shares for Class A common stock resulted in increases of $0.6 million, $2.3 million and $0.2 million, respectively, in amounts payable under the TRA liability and a net increase of $0.1 million in deferred tax assets for the year ended December 31, 2019, all of which were recorded through stockholders’ equity. At December 31, 2021 and 2020, the Company’s liability under the TRA with respect to previously consummated transactions was $27.2 million and $27.4 million, respectively, which is due primarily to current and former executives of the Company or members of their respective family group. Of these amounts, $9.0 million was payable to entities related to Frank J. Fertitta III, the Company’s Chairman of the Board and Chief Executive Officer, and Lorenzo J. Fertitta, the Company’s Vice Chairman of the Board and a vice president of the Company. Future payments to the pre-IPO owners in respect of any subsequent exchanges of LLC Units and Class B common shares for Class A common stock would be in addition to these amounts and are expected to be substantial. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans 401(k) Plan The Company has a defined contribution 401(k) plan that covers all employees who meet certain age and length of service requirements and allows an employer contribution of up to 50% of the first 4% of each participating employee’s compensation contributed to the plan. Participants may elect to defer pretax compensation through payroll deductions, which are regulated under Section 401(k) of the Internal Revenue Code, and may also make after-tax contributions. Effective January 1, 2020, the plan was amended to include a discretionary employer contribution for all employees who meet certain eligibility requirements, including a maximum annual salary threshold. Employer matching and discretionary contribution expense was $8.5 million, $8.6 million and $4.2 million for the years ended December 31, 2021, 2020 and 2019, respectively, which included discretionary contributions of $5.3 million and $5.2 million for the years ended December 31, 2021 and 2020, respectively. Palms Pension Plan The Company acquired a single-employer defined benefit pension plan (the “Pension Plan”) in connection with its purchase of Palms in 2016. The Pension Plan was funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended, and it provided a cash balance form of pension benefits for eligible Palms employees who met certain age and length of service requirements. There had been a plan curtailment since 2009, and as of the curtailment date, new participants were no longer permitted, and existing participants’ accrual of benefits for future service ceased. In December 2021, the Company terminated the Pension Plan. As a result, the plan paid lump-sum settlement payments of $7.5 million and paid $4.5 million to purchase annuities for participants that opted not to receive a lump-sum payment. The following table provides information about the changes in benefit obligation and the fair value of plan assets (amounts in thousands): Year Ended December 31, 2021 2020 Change in benefit obligation: Benefit obligation (accumulated and projected) at beginning of year $ 12,899 $ 14,185 Interest cost 300 428 Actuarial loss 224 389 Benefits paid (322) (515) Settlements paid (13,101) (1,588) Benefit obligation (accumulated and projected) at end of year — 12,899 Change in fair value of plan assets: Fair value of plan assets at beginning of year 11,760 9,526 Actual return on plan assets (552) 385 Employer contributions 2,215 3,952 Benefits paid (322) (515) Settlements paid (13,101) (1,588) Fair value of plan assets at end of year — 11,760 Funded status at end of year $ — $ (1,139) The table below presents the components of pension expense (amounts in thousands): Year Ended December 31, 2021 2020 2019 Components of net periodic benefit cost: Interest cost $ 300 $ 428 $ 517 Expected return on plan assets (109) (256) (187) Amortization of net loss 2 — — Effect of settlements and termination 2,186 160 — Net periodic benefit cost 2,379 332 330 Other changes recognized in other comprehensive (income) loss: Net loss 885 260 532 Amortization of net loss (2) — — Amount recognized due to settlements and termination (2,186) (160) — Total recognized in other comprehensive (income) loss (1,303) 100 532 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 1,076 $ 432 $ 862 The Company did not incur any service costs within the net periodic benefit costs of the Pension Plan during the periods presented. Expense associated with the Pension Plan is classified within Other expense in the Consolidated Statements of Operations. Amounts recognized on the Consolidated Balance Sheets related to the Pension Plan consisted of the following (amounts in thousands): December 31, 2021 2020 Other long-term liabilities $ — $ 1,139 Net actuarial loss recognized in Accumulated other comprehensive loss — 1,303 The following tables present the weighted-average actuarial assumptions used to calculate the net periodic benefit cost and obligation: Year Ended December 31, 2021 2020 2019 Net periodic benefit cost: Discount rate —% 3.20% 4.15% Expected long-term rate of return —% 5.80% 5.80% Rate of compensation increase n/a n/a n/a December 31, 2021 2020 Benefit obligations: Discount rate —% 2.45% Cash balance interest crediting rate —% 2.04% Rate of compensation increase n/a n/a The discount rate used reflected the expected future benefit payments based on plan provisions and participant data as of the beginning of the plan year. The expected future cash flows were discounted by a pension discount yield curve on measurement dates and modified as deemed necessary. The expected return on plan assets used a weighted-average rate based on the target asset allocation of the plan and capital market assumptions developed with a primary focus on forward-looking valuation models and market indicators. The key inputs for these models were future inflation, economic growth, and interest rate environment. The investment strategy for the Pension Plan covered a diversified mix of fixed income investments, allocated to correlate to the liabilities of the plan and to mitigate funded status volatility. The return objectives were to satisfy funding obligations when and as prescribed by law and to minimize the risk of large losses primarily through diversification. At December 31, 2020, and through the termination of the plan, fixed income investments comprised 100% of the plan’s target and actual asset mix. The Company measured the fair value of the Pension Plan assets using the fair value hierarchy described in Note 2. At December 31, 2020, the fair value of the Pension Plan assets was $11.8 million, which was determined using Level 1 inputs (quoted prices in active markets) under the fair value hierarchy. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings (Loss) Per ShareBasic earnings or loss per share is calculated by dividing net income or 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 or loss 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 year ended December 31, 2021 represent outstanding shares of Class B common stock, nonvested restricted shares of Class A common stock and outstanding stock options. For the years ended December 31, 2020 and 2019, the Company incurred a net loss. As a result, all potentially dilutive securities were excluded from the calculation of diluted loss per share for those periods 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): Year Ended December 31, 2021 2020 2019 Net income (loss), basic $ 354,830 $ (174,543) $ (6,737) Less: net (income) loss attributable to noncontrolling interests, basic (112,980) 24,146 3,386 Net income (loss) attributable to Red Rock, basic 241,850 (150,397) $ (3,351) Effect of dilutive securities 89,252 — — Net income (loss) attributable to Red Rock, diluted $ 331,102 $ (150,397) $ (3,351) Year Ended December 31, 2021 2020 2019 Weighted-average shares of Class A common stock outstanding, basic 69,071 70,542 69,565 Effect of dilutive securities 47,381 — — Weighted-average shares of Class A common stock outstanding, diluted 116,452 70,542 69,565 The calculation of diluted earnings (loss) per share of Class A common stock excluded the following shares that could potentially dilute basic earnings (loss) per share in the future because their inclusion would have been antidilutive (amounts in thousands): As of December 31, 2021 2020 2019 Shares issuable in exchange for Class B common stock and LLC Units — 46,086 46,827 Shares issuable upon exercise of stock options 43 6,311 7,397 Shares issuable upon vesting of restricted stock 5 369 712 Shares of Class B common stock are not entitled to share in the earnings of the Company and are not participating securities. Accordingly, separate presentation of earnings per share of Class B common stock under the two-class method has not been presented. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases | Leases Lessee The components of lease expense were as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Operating lease cost $ 5,159 $ 4,995 $ 5,185 Short-term lease cost 917 1,895 7,073 Variable lease cost 24,153 17,400 28,749 Total lease expense $ 30,229 $ 24,290 $ 41,007 Supplemental balance sheet information related to leases under which the Company is the lessee was as follows (amounts in thousands): December 31, 2021 2020 Operating lease right-of-use assets $ 21,143 $ 11,483 Operating lease liabilities: Current portion $ 2,976 $ 2,936 Noncurrent portion 21,880 10,950 Total operating lease liabilities $ 24,856 $ 13,886 Weighted-average remaining lease term - operating leases (years) 23.5 36.1 Weighted-average discount rate - operating leases 4.82 % 5.32 % Supplemental cash flow information related to leases under which the Company is the lessee was as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,602 $ 4,387 $ 5,842 Right-of use assets obtained in exchange for new lease liabilities: Operating leases $ 15,106 $ 1,336 $ — Future minimum lease payments required under operating leases with initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2021 are as follows (amounts in thousands): Year Ending December 31, 2022 $ 3,960 2023 2,949 2024 2,982 2025 2,887 2026 2,811 Thereafter 46,933 Total future lease payments 62,522 Less imputed interest (37,666) Total operating lease liabilities $ 24,856 |
Lessor, Operating Leases | Lessor For the years ended December 31, 2021, 2020 and 2019, revenue from tenant leases was $16.0 million, $13.1 million and $24.2 million, respectively. Revenue from tenant leases is included in Other revenues in the Company’s Consolidated Statements of Operations. At December 31, 2021, the Company’s tenant leases had remaining lease terms ranging from less than one Year Ending December 31, 2022 $ 6,998 2023 5,499 2024 3,919 2025 2,267 2026 1,157 Thereafter 2,916 $ 22,756 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters 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 risks. The Company does not believe there are any legal matters outstanding that would have a material impact on its financial condition or results of operations. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | SegmentsThe Company views each of its Las Vegas casino properties and each of its Native American management arrangements as an individual operating segment. 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 earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as its primary performance measure. The Company’s segment information and a reconciliation of net income to Adjusted EBITDA are presented below (amounts in thousands): Year Ended December 31, 2021 2020 2019 Net revenues Las Vegas operations: Casino $ 1,142,606 $ 764,255 $ 984,253 Food and beverage 245,432 192,899 481,558 Room 143,916 87,035 192,305 Other (a) 69,577 49,716 100,073 Management fees 907 537 571 Las Vegas operations net revenues 1,602,438 1,094,442 1,758,760 Native American management: Management fees 8,292 81,440 91,074 Reportable segment net revenues 1,610,730 1,175,882 1,849,834 Corporate and other (a) 7,169 6,563 6,700 Net revenues $ 1,617,899 $ 1,182,445 $ 1,856,534 Net income (loss) $ 354,830 $ (174,543) $ (6,737) Adjustments Depreciation and amortization 157,791 231,391 222,211 Share-based compensation 12,728 10,886 16,848 Write-downs and other, net (18,677) 36,522 82,026 Loss on sale of Palms 177,664 — — Operating losses from Palms assets held for sale 6,211 — — Interest expense, net 103,206 128,465 156,679 Loss (gain) on extinguishment/modification of debt, net 13,492 (240) 19,939 Change in fair value of derivative instruments 215 21,590 19,467 (Benefit) provision for income tax (69,287) 114,081 (1,734) Other 2,818 333 316 Adjusted EBITDA (b) $ 740,991 $ 368,485 $ 509,015 Adjusted EBITDA Las Vegas operations $ 785,932 $ 335,134 $ 472,921 Native American management 7,809 77,440 85,562 Reportable segment Adjusted EBITDA 793,741 412,574 558,483 Corporate and other (52,750) (44,089) (49,468) Adjusted EBITDA $ 740,991 $ 368,485 $ 509,015 December 31, 2021 2020 Total assets Las Vegas operations $ 2,513,201 $ 3,376,296 Native American management 43,699 31,146 Corporate and other 583,433 332,512 $ 3,140,333 $ 3,739,954 ________________________________ (a) Includes tenant lease revenue which is accounted for under the lease accounting guidance. See Note 16. (b) Adjusted EBITDA includes net income (loss) plus depreciation and amortization, share-based compensation, write-downs and other, net, loss on sale of Palms, operating losses from Palms assets held for sale, interest expense, net, loss (gain) on extinguishment/modification of debt, net, change in fair value of derivative instruments, provision (benefit) for income tax and other. The Company’s capital expenditures, which were primarily related to Las Vegas operations, were $61.3 million, $58.5 million and $353.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS RED ROCK RESORTS, INC. For the Years Ended December 31, 2021, 2020 and 2019 (in thousands) Balance at Beginning of Year Additions (deductions) Balance at End of Year Description Deferred income tax asset valuation allowance: 2021 $ 160,470 $ (155,647) $ 4,823 2020 39,856 120,614 160,470 2019 39,968 (112) 39,856 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Station Holdco and Station LLC are variable interest entities (“VIEs”), of which the Company is the primary beneficiary. 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. Accordingly, the Company consolidates the financial position and results of operations of Station LLC and its consolidated subsidiaries and Station Holdco, and presents the interests in Station Holdco not owned by Red Rock within noncontrolling interest in the consolidated financial statements. Substantially all of the Company’s assets and liabilities represent the assets and liabilities of Station Holdco and Station LLC, other than assets and liabilities related to income taxes and the tax receivable agreement. Investments in all 50% or less owned affiliated companies are accounted for using the equity method. All significant intercompany accounts and transactions have been eliminated. |
Income (Loss) Attribution to Noncontrolling Interest | The Company uses monthly weighted-average LLC Unit ownership to calculate the pretax income or loss and other comprehensive income or loss of Station Holdco attributable to Red Rock and the noncontrolling interest holders. Station Holdco equity attributable to Red Rock and the noncontrolling interest holders is rebalanced, as needed, to reflect LLC Unit ownership at period end. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value Measurements | Fair Value Measurements For assets and liabilities accounted for or disclosed at fair value, the Company utilizes the fair value hierarchy established by the accounting guidance for fair value measurements and disclosures to categorize the inputs to valuation techniques used to measure fair value into three levels. The three levels of inputs are as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The accounting guidance for fair value measurements and disclosures also provides the option to measure certain financial assets and liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to measure any financial assets or liabilities at fair value that are not required to be measured at fair value. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe carrying values of cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value primarily because of the short maturities of these instruments. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents consist of cash on hand and investments with an original maturity of 90 days or less. |
Restricted Cash | Restricted CashAt December 31, 2021, restricted cash consisted of land sale proceeds of $32.0 million held by a qualified intermediary for potential use in a like-kind exchange transaction pursuant to Section 1031 of the Internal Revenue Code, which is classified as a noncurrent asset within Other assets, net on the Company’s Consolidated Balance Sheet. At December 31, 2020, restricted cash consisted of reserve funds for the Company’s condominium operations at Palms Casino Resort, which the Company sold on December 17, 2021. |
Receivables, Net and Credit Risk | Receivables, Net and Credit Risk 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. |
Inventories | Inventories Inventories primarily represent food and beverage items and retail merchandise which are stated at the lower of cost or net realizable value. Cost is determined on a weighted-average basis. |
Assets Held for Sale | Assets Held for SaleThe Company classifies assets as held for sale when a sale is probable of completion within one year and the asset or asset group meets all of the accounting requirements to be classified as held for sale. Assets held for sale and any related liabilities are presented as single asset and liability amounts on the balance sheet with a valuation allowance, if necessary, to reduce the carrying amount of the net assets to the lower of carrying amount or estimated fair value less cost to sell. Estimates are required to determine the fair value and the related disposal costs. The estimated fair value is generally based on market comparables, solicited offers or a discounted cash flow model. In subsequent periods, the valuation allowance may be adjusted based on changes in management’s estimate of fair value less cost to sell. Depreciation and amortization of long-lived assets are not recorded during the period in which such assets are classified as held for sale. |
Property and Equipment | Property and Equipment Property and equipment is initially recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, or for leasehold improvements, the shorter of the estimated useful life of the asset or the lease term, as follows: Buildings and improvements 10 to 45 years Furniture, fixtures and equipment 3 to 10 years Costs of major improvements are capitalized, while costs of normal repairs and maintenance are charged to expense as incurred. Construction in progress is related to the construction or development of property and equipment that has not yet been placed in service for its intended use. Depreciation and amortization of property and equipment commences when the asset is placed in service. When an asset is retired or otherwise disposed, the related cost and accumulated depreciation are removed from the accounts and the gain or loss on disposal is recognized within Write-downs and other, net. The Company makes estimates and assumptions when accounting for capital expenditures. The Company’s depreciation expense is highly dependent on the assumptions made for the estimated useful lives of its assets. Useful lives are estimated by the Company based on its experience with similar assets and estimates of the usage of the asset. Whenever events or circumstances occur which change the estimated useful life of an asset, the Company accounts for the change prospectively. |
Native American Development Costs | Native American Development Costs The Company incurs certain costs associated with development and management agreements with Native American tribes that are reimbursable by such tribes. These costs are capitalized as long-term assets as incurred, and primarily include costs associated with the acquisition of land and development of the gaming facility. The assets typically are transferred to the Native American tribe when it secures financing or the gaming facility is completed. Upon transfer of the assets to the Native American tribe, any remaining carrying amount that has not yet been recovered from the tribe is reclassified to a long-term receivable. The Company earns a return on the costs incurred for the acquisition and development of Native American development projects. Repayment of the advances and the related return typically is funded from the tribe’s financing, from the cash flows of the gaming facility, or both. Due to the uncertainty surrounding the timing and amount of the stated return, the Company recognizes the return when it is received. The Company evaluates its Native American development costs for impairment whenever events or changes in circumstances indicate that the carrying amount of a project might not be recoverable, taking into consideration all available information. Among other things, the Company considers the status of the project, any contingencies, the achievement of milestones, any existing or potential litigation, and regulatory matters when evaluating its Native American projects for impairment. If an indicator of impairment exists, the Company compares the estimated future cash flows of the project, on an undiscounted basis, to its carrying amount. If the undiscounted expected future cash flows do not exceed the carrying amount, the asset is written down to its estimated fair value, which typically is estimated based on a discounted future cash flow model or market comparables, when available. The Company estimates the undiscounted future cash flows of a Native American development project based on consideration of all positive and negative evidence about the future cash flow potential of the project including, but not limited to, the likelihood that the project will be successfully completed, the status of required approvals, and the status and timing of the construction of the project, as well as current and projected economic, political, regulatory and competitive conditions that may adversely impact the project’s operating results. At December 31, 2021 and 2020, the Company’s Native American development costs were related to development and management agreements with the North Fork Rancheria of Mono Indians. See Note 5 for additional information. |
Goodwill | Goodwill The Company tests its goodwill for impairment annually as of October 1, and whenever events or circumstances indicate that it is more likely than not that impairment may have occurred. Impairment testing for goodwill is performed at the reporting unit level, and each of the Company’s operating properties is considered a separate reporting unit. When performing its goodwill impairment testing, the Company either conducts a qualitative assessment to determine whether it is more likely than not that the asset is impaired, or elects to bypass this qualitative assessment and perform a quantitative test for impairment. Under the qualitative assessment, the Company considers both positive and negative factors, including macroeconomic conditions, industry events, financial performance and other changes in facts and circumstances, and makes a determination of whether it is more likely than not that the fair value of goodwill is less than its carrying amount. If, after assessing the qualitative factors, the Company determines it is more likely than not the asset is impaired, it then performs a quantitative test in which the estimated fair value of the reporting unit is compared with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its estimated fair value, an impairment loss is recognized in an amount equal to the excess, limited to the amount of goodwill allocated to the reporting unit. When performing the quantitative test, the Company estimates the fair value of each reporting unit using the expected present value of future cash flows along with value indications based on current valuation multiples of the Company and comparable publicly traded companies. The estimation of fair value involves significant judgment by management. Future cash flow estimates are, by their nature, subjective and actual results may differ materially from such estimates. Cash flow estimates are based on the current regulatory, political and economic climates, recent operating information and projections. Such estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, competition, events affecting various forms of travel and access to the Company’s properties, and other factors. If the Company’s estimates of future cash flows are not met, it may have to record impairment charges in the future. |
Indefinite-Lived Intangible Assets | Indefinite-lived Intangible Assets The Company’s indefinite-lived intangible assets primarily represent brands. The fair value of the Company’s brands is estimated using a derivation of the income approach to valuation, based on estimated royalties avoided through ownership of the assets, utilizing market indications of fair value. The Company tests its indefinite-lived intangible assets for impairment annually as of October 1, and whenever events or circumstances indicate that it is more likely than not that an asset is impaired. Indefinite-lived intangible assets are not amortized unless it is determined that an asset’s useful life is no longer indefinite. The Company periodically reviews its indefinite-lived assets to determine whether events and circumstances continue to support an indefinite useful life. If an indefinite-lived intangible asset no longer has an indefinite life, the asset is tested for impairment and is subsequently accounted for as a finite-lived intangible asset. |
Finite-Lived Intangible Assets | Finite-lived Intangible Assets The Company’s finite-lived intangibles primarily include assets related to its customer relationships and management contracts. The Company amortizes its finite-lived intangible assets over their estimated useful lives using the straight-line method. The Company periodically evaluates the remaining useful lives of its finite-lived intangible assets to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company’s customer relationship intangible assets represent the value associated with its rated casino guests. The management contract intangible assets represent the value associated with agreements under which the Company provides, or will provide, management services to various casino properties, primarily a Native American casino project that is currently under development. The Company amortizes its management contract intangible assets over their expected useful lives beginning when the property commences operations and management fees are being earned. |
Impairment of Long-Lived Assets | Impairment of Long-lived Assets The Company reviews the carrying amounts of its long-lived assets, other than goodwill and indefinite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability is evaluated by comparing the estimated future cash flows of the asset, on an undiscounted basis, to its carrying amount. If the undiscounted estimated future cash flows exceed the carrying amount, no impairment is indicated. If the undiscounted estimated future cash flows do not exceed the carrying amount, impairment is measured based on the difference between the asset’s estimated fair value and its carrying amount. To estimate fair values, the Company typically uses a discounted cash flow model or market comparables. The Company’s long-lived asset impairment tests are performed at the reporting unit level. The estimation of undiscounted future cash flows involves significant judgment by management. The Company’s estimates of future cash flows expected to be generated by an asset or asset group are based on the current regulatory, political and economic climates, recent operating information and projections. Such estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, changes in consumer preferences, or events affecting various forms of travel and access to its properties. If the Company’s estimates of future cash flows are not met, it may have to record impairment charges in the future. As of December 31, 2021 and 2020, the Company’s Texas Station, Fiesta Henderson and Fiesta Rancho properties had not reopened, and management determined the ongoing closures to be an indicator of potential impairment at those respective reporting unit levels. Based on the undiscounted expected future cash flows, no impairment was recorded. The Company will continue to assess the performance of its open properties, as well as the Las Vegas market and the economy as a whole, before considering whether to reopen some or all of the remaining properties, and it has no current plans to reopen any of these properties in 2022. In the first quarter of 2021, the Company recognized an asset impairment charge related to the sale of Palms. See Assets Held for Sale above for additional information. |
Land Held for Development | Land Held for DevelopmentAt December 31, 2021, the Company owned approximately 264 acres of land comprising six strategically-located parcels in Las Vegas and Reno, each of which is zoned for casino gaming and other uses. |
Debt Discounts and Debt Issuance Costs | Debt Discounts and Debt Issuance Costs Debt discounts and costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense using the effective interest method over the expected term of the related debt agreements. Costs incurred in connection with the issuance of revolving lines of credit are presented in Other assets, net on the Consolidated Balance Sheets. All other capitalized costs incurred in connection with the issuance of long-term debt are presented as a direct reduction of Long-term debt, less current portion on the Consolidated Balance Sheets. |
Derivative Instruments | Derivative Instruments The Company has previously used interest rate swaps to hedge its exposure to variability in expected future cash flows related to interest payments. At December 31, 2021, the Company had no interest rate swaps. At December 31, 2020, the Company had interest rate swaps, none of which were designated in cash flow hedging relationships. The Company recorded all derivatives at fair value, which was determined using widely accepted valuation techniques, including discounted cash flow analyses and credit valuation adjustments, as well as observable market-based inputs such as forward interest rate curves. The |
Lessee, Leases | Leases The Company leases certain equipment, buildings, land and other assets used in its operations. The Company determines whether an arrangement is or contains a lease at inception, and determines the classification of the lease based on facts and circumstances as of the lease commencement date. For leases with an initial term greater than twelve months, the Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For leases with an initial term of twelve months or less, the Company has elected not to recognize ROU assets or lease liabilities. The Company measures its ROU assets and lease liabilities at the lease commencement date based on the present value of lease payments over the lease term. To calculate the present value of lease payments for leases that do not contain an implicit interest rate, the Company uses its incremental borrowing rate based on information available at the lease commencement date. For leases under which the Company has options to extend or terminate the lease, such options are included in the lease term when it is reasonably certain that the Company will exercise the option. The Company includes operating lease ROU assets within Other assets, net on its Consolidated Balance Sheets. Operating lease liabilities are included in Other accrued liabilities and Other long-term liabilities. For arrangements that contain both lease and non-lease components under which the Company is the lessee, the components are not combined for accounting purposes. The Company’s leases do not include any significant residual value guarantees, restrictions or covenants. For operating leases with fixed rental payments or variable rental payments based on an index or rate, the Company recognizes lease expense on a straight-line basis over the lease term. For operating leases with variable payments not based on an index or rate, the Company recognizes the variable lease expense in the period in which the obligation for the payment is incurred. The Company’s variable lease payments not based on an index or rate are primarily related to short-term leases for slot machines under which lease payments are based on a percentage of the revenue earned. |
Lessor, Leases | The Company leases space within its properties to third-party tenants, primarily food and beverage outlets and movie theaters. The Company also leases space to tenants within commercial and industrial buildings located on certain land held for development. All of the Company’s tenant leases are classified as operating leases and do not contain options for the lessee to purchase the underlying real property. Revenue from tenant leases is included in Other revenues in the Company’s Consolidated Statements of Operations. Lease payments from tenants at the Company’s properties typically include variable rent based on a percentage of the tenant’s net sales, and may also include a fixed base rent amount, which may increase by a rate or index over time. The Company recognizes variable rental income in the period in which the right to receive such rental income is established according to the lease agreements and base rental income on a straight-line basis over the lease term. Lease payments from the Company’s tenants at commercial and industrial buildings are typically based on a fixed rental amount, which may increase by a rate or index over time. Non-lease components within tenant lease agreements, which primarily comprise utilities, property taxes and common area maintenance charges, are included within operating lease income. |
Comprehensive Income | Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss), which includes all other non-owner changes in equity. Components of the Company’s comprehensive income (loss) are reported in the Consolidated Statements of Comprehensive Income (Loss) and Consolidated Statements of Stockholders’ Equity, and accumulated other comprehensive loss is included in stockholders’ equity on the Consolidated Balance Sheets. |
Revenues | Revenues 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 accounts for its gaming and non-gaming contracts on a portfolio basis. This practical expedient is applied 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. 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 slot play. 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 revenue 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 revenue is recognized when the goods or services are provided to the guest. Guests may also receive discretionary complimentaries that require the transaction price to be allocated to each performance obligation on a relative standalone selling price basis. Non-gaming revenue also includes 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 $144.3 million, $107.1 million and $228.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. Management Fee Revenue Management fee revenue primarily represents fees earned from the Company’s management agreement with a Native American tribe. 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 the management services are performed because there is a consistent measure throughout the contract period that reflects the value to the Native American tribe each month. The Company managed Graton Resort & Casino (“Graton Resort”) on behalf of the Federated Indians of Graton Rancheria through February 5, 2021. For the years ended December 31, 2021, 2020 and 2019, management fees from Graton Resort totaled $7.8 million, $77.4 million and $85.6 million, respectively. |
Player Rewards Program | Player Rewards Program The Company has a player rewards program (the “Rewards Program”) that allows customers to earn points based on their slot play. Guests may accumulate loyalty points over time that may be redeemed at their discretion under the terms of the Rewards Program. Loyalty points may be redeemed for cash, slot play, food, beverage, rooms, entertainment and merchandise at all of the Company’s Las Vegas area properties. When guests earn points under the Rewards Program, the Company recognizes a liability for future performance obligations. The Rewards Program point liability represents deferred gaming revenue, which is measured at the redemption value of loyalty points earned under the Rewards Program that management ultimately believes will be redeemed. The recognition of the Rewards Program point liability reduces casino revenue. When points are redeemed for cash, the point liability is reduced for the amount of cash paid out. When points are redeemed for 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. Loyalty points are generally earned and redeemed continually over time. As a result, the loyalty point liability balance remains relatively constant. The loyalty point liability is presented within Other accrued liabilities on the Consolidated Balance Sheets. |
Slot Machine Jackpots | Slot Machine Jackpots The Company does not accrue base jackpots if it is not legally obligated to pay the jackpot. A jackpot liability is accrued with a related reduction in casino revenue when the Company is obligated to pay the jackpot, such as the incremental amount in excess of the base jackpot on a progressive game. |
Gaming Taxes | Gaming TaxesThe Company is assessed taxes based on gross gaming revenue, subject to applicable jurisdictional adjustments. Gaming taxes are included in Casino costs and expenses in the Consolidated Statements of Operations. |
Share-based Compensation | Share-based Compensation The Company measures its share-based compensation cost at the grant date based on the fair value of the award, and recognizes the cost over the requisite service period. The fair value of stock options is estimated at the grant date using the Black-Scholes option pricing model. The fair value of restricted stock is based on the closing share price of the Company’s stock on the grant date. The Company uses the straight-line method to recognize compensation cost for share-based awards with graded service-based vesting, and cumulative compensation cost recognized to date at least equals the grant-date fair value of the vested portion of the awards. Forfeitures are accounted for as they occur. |
Advertising | AdvertisingThe Company expenses advertising costs the first time the advertising takes place. Advertising expense is primarily included in selling, general and administrative expense in the Consolidated Statements of Operations. |
Income Taxes | Income Taxes Red Rock is taxed as a corporation and pays corporate federal, state and local taxes on income allocated to it by Station Holdco. Station Holdco operates as a partnership for federal, state and local tax reporting and holds 100% of the economic interests in Station LLC. The members of Station Holdco are liable for any income taxes resulting from income allocated to them by Station Holdco as a pass-through entity. The Company recognizes deferred tax assets and liabilities based on the differences between the book value of assets and liabilities for financial reporting purposes and those amounts applicable for income tax purposes using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company classifies all deferred tax assets and liabilities as noncurrent. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period in which the enactment date occurs. Deferred tax assets represent future tax deductions or credits. Realization of the deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character in either the carryback or carryforward period. Each reporting period, the Company analyzes the likelihood that its deferred tax assets will be realized. A valuation allowance is recorded if, based on the weight of all available positive and negative evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. If the Company subsequently determines that there is sufficient evidence to indicate a deferred tax asset will be realized, the associated valuation allowance is reversed. On an annual basis, the Company performs a comprehensive analysis of all forms of positive and negative evidence based on year end results. During each interim reporting period, the Company updates its annual analysis for significant changes in the positive and negative evidence. The Company records uncertain tax positions on the basis of a two-step process in which (1) the Company determines whether it is more likely than not the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions meeting the more likely than not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record a significant liability for unrecognized tax benefits within the next twelve months. The Company will recognize interest and penalties related to income taxes, if any, within the provision for income taxes. The Company has incurred no interest or penalties related to income taxes in any of the periods presented. |
Tax Receivable Agreement | Tax Receivable Agreement In connection with the IPO, the Company entered into a tax receivable agreement (“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 parties for 85% of the tax benefits realized by the Company by such exchange. The annual tax benefits are computed by calculating the income taxes due, including such tax benefits, and the income taxes due without such benefits. When an exchange transaction occurs, the Company initially recognizes the related TRA liability through a charge to equity, and any subsequent adjustments to the liability are recorded through the Consolidated Statements of Operations. As a result of exchanges of LLC Units for Class A common stock and purchases by the Company of LLC Units from holders of such units, the Company is entitled to a proportionate share of the existing tax basis of the assets of Station Holdco at the time of such exchanges or purchases. In addition, such exchanges or purchases of LLC Units are expected to result in increases in the tax basis of the assets of Station Holdco that otherwise would not have been available. These increases in tax basis may reduce the amount of tax that the Company would otherwise be required to pay in the future. These increases in tax basis may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. 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, the tax rate then applicable and amortizable basis. If the Company does not generate sufficient taxable income in the aggregate over the term of the TRA to utilize the tax benefits, it would not be required to make the related TRA payments. The Company will only recognize a liability for TRA payments if management determines it is probable that it will generate sufficient future taxable income over the term of the TRA to utilize the related tax benefits. If management determines in the future that the Company will not be able to fully utilize all or part of the related tax benefits, it would derecognize the portion of the liability related to the benefits not expected to be utilized. Estimating future taxable income is inherently uncertain and requires judgment. In projecting future taxable income, the Company considers its historical results and incorporates certain assumptions, including revenue growth and operating margins, among others. 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, the Company’s payment obligations would be accelerated based upon certain assumptions, including the assumption that it would have sufficient future taxable income to utilize such tax benefits, and may substantially exceed the actual benefits, if any, the Company realizes in respect of the tax attributes subject to the TRA. Additionally, the Company estimates the amount of TRA payments expected to be paid within the next twelve months and classifies this amount within current liabilities on its Consolidated Balance Sheets. This determination is based on management’s estimate of taxable income for the next fiscal year. To the extent the Company’s estimate differs from actual results, it may be required to reclassify portions of the liability under the TRA between current and non-current. |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income attributable to Red Rock by the weighted-average number of Class A shares outstanding during the period. Diluted EPS is computed by dividing net income attributable to Red Rock, including the impact of potentially dilutive securities, by the weighted-average number of Class A shares outstanding during the period, including the number of Class A shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include the outstanding Class B common stock, outstanding stock options and unvested restricted stock. The Company uses the “if-converted” method to determine the potentially dilutive effect of its Class B common stock, and the treasury stock method to determine the potentially dilutive effect of outstanding stock options and unvested restricted stock. |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board issued amended accounting guidance to simplify the accounting for income taxes. The amendment eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The amendment also simplifies other aspects of the accounting for income taxes. The Company adopted this guidance prospectively on January 1, 2021. The adoption did not have a material impact on the Company’s financial position or results of operations. |
Write-downs and Other, Net (Pol
Write-downs and Other, Net (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Write-downs and Other Charges, Net | Write-downs and Other, NetWrite-downs and other, net include various charges and gains related to non-routine transactions, such as net gains or losses on asset disposals, severance, redevelopment and preopening expenses, business innovation and technology enhancements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Noncontrolling Interest [Table Text Block] | The ownership of the LLC Units is summarized as follows: December 31, 2021 December 31, 2020 Units Ownership % Units Ownership % Red Rock 64,425,248 58.4 % 71,228,168 60.7 % Noncontrolling interest holders 45,985,804 41.6 % 46,085,804 39.3 % Total 110,411,052 100.0 % 117,313,972 100.0 % |
Schedule of Property and Equipment Useful Lives [Table Text Block] | Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, or for leasehold improvements, the shorter of the estimated useful life of the asset or the lease term, as follows: Buildings and improvements 10 to 45 years Furniture, fixtures and equipment 3 to 10 years |
Schedule of Gaming Tax Expense [Table Text Block] | Gaming tax expense was as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Gaming tax expense $ 84,277 $ 56,253 $ 78,427 |
Schedule of Advertising Expense [Table Text Block] | Advertising expense was as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Advertising expense $ 14,278 $ 10,205 $ 31,678 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following (amounts in thousands): December 31, 2021 2020 Land $ 219,256 $ 271,603 Buildings and improvements 2,256,826 3,001,283 Furniture, fixtures and equipment 633,210 800,257 Construction in progress 69,129 8,911 3,178,421 4,082,054 Accumulated depreciation (1,168,813) (1,224,081) Property and equipment, net $ 2,009,608 $ 2,857,973 |
Schedule of Depreciation Expense | Depreciation expense was as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Depreciation expense $ 155,966 $ 223,846 $ 213,642 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Abstract] | |
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Table Text Block] | The Company’s intangibles, other than goodwill, consisted of the following (amounts in thousands): December 31, 2021 Estimated useful life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Assets Brands Indefinite $ 77,200 $ — $ 77,200 License rights Indefinite 300 — 300 Customer relationships 15 22,800 (16,019) 6,781 Management contracts 7 - 20 4,000 (1,109) 2,891 Intangible assets $ 104,300 $ (17,128) $ 87,172 December 31, 2020 Estimated useful life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Assets Brands Indefinite $ 77,200 $ — $ 77,200 License rights Indefinite 300 — 300 Customer relationships 15 23,600 (14,726) 8,874 Management contracts 7 - 20 4,000 (1,004) 2,996 Condominium rental contracts 20 9,000 (1,913) 7,087 Trademarks 15 6,000 (1,700) 4,300 Beneficial leases 6 237 (177) 60 Intangible assets 120,337 (19,520) 100,817 Liabilities Below market leases 15 2,195 (615) 1,580 Net intangibles $ 118,142 $ (18,905) $ 99,237 |
Schedule of Finite-Lived Intangible Assets, Amortization Expense [Table Text Block] | Amortization expense for intangibles was as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Amortization expense $ 1,825 $ 7,545 $ 8,569 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated annual amortization expense for intangibles for each of the next five years is as follows (amounts in thousands): Years Ending December 31, 2022 $ 1,625 2023 1,625 2024 1,911 2025 1,911 2026 1,092 |
Native American Development (Ta
Native American Development (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
North Fork Rancheria of Mono Indians (Mono) [Member] | |
Schedule of Development and Management Agreements | The following table summarizes the Company’s evaluation at December 31, 2021 of each of the critical milestones necessary to complete the North Fork Project. 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 (the “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 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. In April 2021, the Mono received an issues letter from the NIGC identifying issues to be addressed prior to approval of the Management Agreement. Approval of the Management Agreement by the NIGC is expected to occur following the Mono’s response to the issues 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 have all been amended 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) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consisted of the following (amounts in thousands): December 31, 2021 2020 Contract and customer-related liabilities: Rewards Program liability $ 12,711 $ 17,465 Advance deposits and future wagers 15,897 11,854 Unpaid wagers, outstanding chips and other customer-related liabilities 21,963 18,248 Other accrued liabilities: Accrued payroll and related 30,019 41,026 Accrued gaming and related 25,372 20,316 Construction payables and equipment purchase accruals 15,437 3,710 Operating lease liabilities, current portion 2,976 2,936 Interest rate swaps — 11,758 Other 22,734 18,764 $ 147,109 $ 146,077 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following (amounts in thousands): December 31, 2021 2020 Term Loan B Facility due February 7, 2027, interest at a margin above LIBOR or base rate (2.50% at December 31, 2021 and 2020), net of unamortized discount and deferred issuance costs of $24.9 million and $29.5 million at December 31, 2021 and 2020, respectively $ 1,463,731 $ 1,470,944 Term Loan A Facility due February 7, 2025, interest at a margin above LIBOR or base rate (1.61% and 1.90% at December 31, 2021 and 2020, respectively), net of unamortized discount and deferred issuance costs of $1.6 million and $2.2 million at December 31, 2021 and 2020, respectively 170,819 179,712 Revolving Credit Facility due February 7, 2025, interest at a margin above LIBOR or base rate — — 4.625% Senior Notes due December 1, 2031, net of unamortized deferred issuance costs of $6.0 million at December 31, 2021 494,015 — 4.50% Senior Notes due February 15, 2028, net of unamortized discount and deferred issuance costs of $6.6 million and $7.6 million at December 31, 2021 and 2020, respectively 684,170 683,257 5.00% Senior Notes due October 1, 2025, net of unamortized deferred issuance costs of $4.1 million at December 31, 2020 — 526,260 Other long-term debt, weighted-average interest of 3.82% and 3.83% at December 31, 2021 and 2020, respectively, net of unamortized discount and deferred issuance costs of $0.3 million and $0.4 million at December 31, 2021 and 2020, respectively 40,789 41,834 Total long-term debt 2,853,524 2,902,007 Current portion of long-term debt (25,921) (22,844) Long-term debt, net $ 2,827,603 $ 2,879,163 |
Debt Instrument Redemption 4.50% Notes | On or after February 15, 2023, Station LLC may redeem all or a portion of the 4.50% Senior Notes at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest and additional interest to the applicable redemption date: Years Beginning February 15, Percentage 2023 102.250 % 2024 101.125 % 2025 and thereafter 100.000 % |
Schedule of Maturities of Long-term Debt | Principal Maturities As of December 31, 2021, scheduled principal maturities of Station LLC’s long-term debt for each of the next five years and thereafter were as follows (amounts in thousands): Years Ending December 31, 2022 $ 25,921 2023 25,965 2024 26,011 2025 196,524 2026 15,350 Thereafter 2,603,127 2,892,898 Debt discounts and issuance costs (39,374) $ 2,853,524 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Long-Term Debt, Carrying Values and Estimated Fair Values | The estimated fair value of the Company’s long-term debt compared with its carrying amount is presented below (amounts in millions): December 31, 2021 2020 Aggregate fair value $ 2,887 $ 2,936 Aggregate carrying amount 2,854 2,902 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table presents changes in accumulated other comprehensive loss balances, net of tax and noncontrolling interest (amounts in thousands): Unrealized loss on interest rate swaps Unrecognized pension liability Total Balances, December 31, 2019 $ (174) $ (467) $ (641) Unrealized loss arising during the period — (406) (406) Amounts reclassified into income 178 249 427 Net current-period other comprehensive income (loss) 178 (157) 21 Exchanges of noncontrolling interests for Class A common stock and rebalancing (4) 1 (3) Balances, December 31, 2020 — (623) (623) Unrealized loss arising during the period — (410) (410) Amounts reclassified into income — 1,014 1,014 Net current-period other comprehensive income — 604 604 Exchanges of noncontrolling interests for Class A common stock and rebalancing — 19 19 Balances, December 31, 2021 $ — $ — $ — |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | The table below presents the effect on Red Rock Resorts, Inc. stockholders’ equity from net income (loss) and changes in its ownership of Station Holdco (amounts in thousands): Year Ended December 31, 2021 2020 2019 Net income (loss) attributable to Red Rock Resorts, Inc. $ 241,850 $ (150,397) $ (3,351) Transfers from (to) noncontrolling interests: Exchanges of noncontrolling interests for Class A common stock 598 4,412 370 Rebalancing of ownership percentage between the Company and noncontrolling interests of Station Holdco 137,259 (3,918) (8,361) Net transfers from (to) noncontrolling interests 137,857 494 (7,991) Change from net income (loss) attributable to Red Rock Resorts, Inc. and net transfers from (to) noncontrolling interests $ 379,707 $ (149,903) $ (11,342) |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | A summary of stock option activity is presented below: Shares Weighted-average exercise price Weighted-average remaining contractual life (years) Aggregate intrinsic value (amounts in thousands) Outstanding at January 1, 2021 6,310,657 $ 25.80 Granted 1,336,423 29.31 Exercised (a) (1,138,783) 22.16 Forfeited or expired (334,799) 24.92 Antidilution adjustment (b) 389,041 n/m Outstanding at December 31, 2021 6,562,539 $ 25.67 4.1 $ 192,643 Unvested instruments expected to vest 3,179,585 $ 26.21 5.0 $ 91,647 Exercisable at December 31, 2021 3,382,954 $ 25.16 3.3 $ 100,997 ___________________________________ n/m = not meaningful (a) Includes 632,493 options that were not converted into shares due to net share settlements to cover the aggregate exercise price and employee withholding taxes. |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | The following information is provided for stock options awarded under the plan: Year Ended December 31, 2021 2020 2019 Weighted-average grant date fair value $ 14.60 $ — $ 7.20 Total intrinsic value of stock options exercised (amounts in thousands) $ 23,980 $ 498 $ 1,517 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The weighted- average assumptions used by the Company were as follows: Year Ended December 31, 2021 2020 2019 Expected stock price volatility 59.1% n/a 32.2% Expected term (in years) 5.0 n/a 5.0 Risk-free interest rate 0.6% n/a 2.3% Expected dividend yield —% n/a 1.4% ____________________________________ n/a — No stock option awards were granted in 2020. |
Schedule of Nonvested Share Activity [Table Text Block] | A summary of restricted stock activity is presented below: Shares Weighted-average grant date fair value Nonvested at January 1, 2021 368,811 $ 27.19 Granted 153,050 29.33 Vested (90,354) 26.89 Forfeited (39,121) 23.46 Nonvested at December 31, 2021 392,386 $ 28.47 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | The following information is provided for restricted stock awarded under the plan: Year Ended December 31, 2021 2020 2019 Weighted-average grant date fair value per share $ 29.33 $ 27.22 $ 27.01 Total fair value of shares vested (amounts in thousands) $ 2,430 $ 8,789 $ 2,101 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | The following table presents the location of share-based compensation expense in the Consolidated Statements of Operations (amounts in thousands): Year Ended December 31, 2021 2020 2019 Operating costs and expenses: Casino $ 402 $ 321 $ 458 Food and beverage 30 (68) 202 Room 44 12 11 Selling, general and administrative 12,252 10,621 16,177 Total share-based compensation expense $ 12,728 $ 10,886 $ 16,848 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income tax (benefit) expense were as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Current income taxes: Federal $ 4,874 $ — $ — State and local — — 1 Total current income taxes 4,874 — 1 Deferred income taxes: Federal (74,161) 113,977 (1,721) State and local — 104 (14) Total deferred income taxes (74,161) 114,081 (1,735) Total income tax (benefit) expense $ (69,287) $ 114,081 $ (1,734) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of statutory federal income tax, which is the amount computed by multiplying income before tax by the statutory federal income tax rate, to the Company’s provision for income tax is as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Expected U.S. federal income taxes at statutory rate $ 59,964 $ (12,697) $ (1,779) Income attributable to noncontrolling interests (23,726) 5,071 711 Share-based compensation contribution (5,679) (909) (762) Change in valuation allowance (99,997) 119,900 642 Other 151 2,716 (546) Income tax (benefit) expense $ (69,287) $ 114,081 $ (1,734) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred tax assets are as follows (amounts in thousands): December 31, 2021 2020 Deferred tax assets: Tax credit carryforwards $ — $ 5,920 Net operating loss carryforwards and other attributes 13,352 81,233 Investment in partnership 84,393 67,559 Payable pursuant to tax receivable agreement 5,703 5,758 Total gross deferred tax assets 103,448 160,470 Valuation allowance (4,823) (160,470) Total deferred tax assets, net of valuation allowance $ 98,625 $ — |
Schedule of Unrecognized Tax Benefits Roll Forward | The Company had the following activity for unrecognized tax benefits (amounts in thousands): Year Ended December 31, 2021 2020 2019 Balance at beginning of year $ 1,237 $ 1,004 $ — Tax positions related to current year additions 1,012 142 519 Additions for tax positions of prior years — 91 485 Balance at end of year $ 2,249 $ 1,237 $ 1,004 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | The following table provides information about the changes in benefit obligation and the fair value of plan assets (amounts in thousands): Year Ended December 31, 2021 2020 Change in benefit obligation: Benefit obligation (accumulated and projected) at beginning of year $ 12,899 $ 14,185 Interest cost 300 428 Actuarial loss 224 389 Benefits paid (322) (515) Settlements paid (13,101) (1,588) Benefit obligation (accumulated and projected) at end of year — 12,899 Change in fair value of plan assets: Fair value of plan assets at beginning of year 11,760 9,526 Actual return on plan assets (552) 385 Employer contributions 2,215 3,952 Benefits paid (322) (515) Settlements paid (13,101) (1,588) Fair value of plan assets at end of year — 11,760 Funded status at end of year $ — $ (1,139) |
Schedule of Net Benefit Costs and Amounts Recognized in Other Comprehensive Income [Table Text Block] | The table below presents the components of pension expense (amounts in thousands): Year Ended December 31, 2021 2020 2019 Components of net periodic benefit cost: Interest cost $ 300 $ 428 $ 517 Expected return on plan assets (109) (256) (187) Amortization of net loss 2 — — Effect of settlements and termination 2,186 160 — Net periodic benefit cost 2,379 332 330 Other changes recognized in other comprehensive (income) loss: Net loss 885 260 532 Amortization of net loss (2) — — Amount recognized due to settlements and termination (2,186) (160) — Total recognized in other comprehensive (income) loss (1,303) 100 532 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 1,076 $ 432 $ 862 |
Schedule of Defined Pension Plan Statements of Financial Performance and Financial Position, Location [Table Text Block] | Amounts recognized on the Consolidated Balance Sheets related to the Pension Plan consisted of the following (amounts in thousands): December 31, 2021 2020 Other long-term liabilities $ — $ 1,139 Net actuarial loss recognized in Accumulated other comprehensive loss — 1,303 |
Defined Benefit Plan, Assumptions [Table Text Block] | The following tables present the weighted-average actuarial assumptions used to calculate the net periodic benefit cost and obligation: Year Ended December 31, 2021 2020 2019 Net periodic benefit cost: Discount rate —% 3.20% 4.15% Expected long-term rate of return —% 5.80% 5.80% Rate of compensation increase n/a n/a n/a December 31, 2021 2020 Benefit obligations: Discount rate —% 2.45% Cash balance interest crediting rate —% 2.04% Rate of compensation increase n/a n/a |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 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): Year Ended December 31, 2021 2020 2019 Net income (loss), basic $ 354,830 $ (174,543) $ (6,737) Less: net (income) loss attributable to noncontrolling interests, basic (112,980) 24,146 3,386 Net income (loss) attributable to Red Rock, basic 241,850 (150,397) $ (3,351) Effect of dilutive securities 89,252 — — Net income (loss) attributable to Red Rock, diluted $ 331,102 $ (150,397) $ (3,351) Year Ended December 31, 2021 2020 2019 Weighted-average shares of Class A common stock outstanding, basic 69,071 70,542 69,565 Effect of dilutive securities 47,381 — — Weighted-average shares of Class A common stock outstanding, diluted 116,452 70,542 69,565 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The calculation of diluted earnings (loss) per share of Class A common stock excluded the following shares that could potentially dilute basic earnings (loss) per share in the future because their inclusion would have been antidilutive (amounts in thousands): As of December 31, 2021 2020 2019 Shares issuable in exchange for Class B common stock and LLC Units — 46,086 46,827 Shares issuable upon exercise of stock options 43 6,311 7,397 Shares issuable upon vesting of restricted stock 5 369 712 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease Expense | The components of lease expense were as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Operating lease cost $ 5,159 $ 4,995 $ 5,185 Short-term lease cost 917 1,895 7,073 Variable lease cost 24,153 17,400 28,749 Total lease expense $ 30,229 $ 24,290 $ 41,007 |
Lessee Disclosures | Supplemental balance sheet information related to leases under which the Company is the lessee was as follows (amounts in thousands): December 31, 2021 2020 Operating lease right-of-use assets $ 21,143 $ 11,483 Operating lease liabilities: Current portion $ 2,976 $ 2,936 Noncurrent portion 21,880 10,950 Total operating lease liabilities $ 24,856 $ 13,886 Weighted-average remaining lease term - operating leases (years) 23.5 36.1 Weighted-average discount rate - operating leases 4.82 % 5.32 % Supplemental cash flow information related to leases under which the Company is the lessee was as follows (amounts in thousands): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,602 $ 4,387 $ 5,842 Right-of use assets obtained in exchange for new lease liabilities: Operating leases $ 15,106 $ 1,336 $ — |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments required under operating leases with initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2021 are as follows (amounts in thousands): Year Ending December 31, 2022 $ 3,960 2023 2,949 2024 2,982 2025 2,887 2026 2,811 Thereafter 46,933 Total future lease payments 62,522 Less imputed interest (37,666) Total operating lease liabilities $ 24,856 |
Lessor, Operating Lease, Payments to be Received, Maturity | The following table presents undiscounted future minimum rentals to be received under operating leases as of December 31, 2021 (amounts in thousands): Year Ending December 31, 2022 $ 6,998 2023 5,499 2024 3,919 2025 2,267 2026 1,157 Thereafter 2,916 $ 22,756 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company’s segment information and a reconciliation of net income to Adjusted EBITDA are presented below (amounts in thousands): Year Ended December 31, 2021 2020 2019 Net revenues Las Vegas operations: Casino $ 1,142,606 $ 764,255 $ 984,253 Food and beverage 245,432 192,899 481,558 Room 143,916 87,035 192,305 Other (a) 69,577 49,716 100,073 Management fees 907 537 571 Las Vegas operations net revenues 1,602,438 1,094,442 1,758,760 Native American management: Management fees 8,292 81,440 91,074 Reportable segment net revenues 1,610,730 1,175,882 1,849,834 Corporate and other (a) 7,169 6,563 6,700 Net revenues $ 1,617,899 $ 1,182,445 $ 1,856,534 Net income (loss) $ 354,830 $ (174,543) $ (6,737) Adjustments Depreciation and amortization 157,791 231,391 222,211 Share-based compensation 12,728 10,886 16,848 Write-downs and other, net (18,677) 36,522 82,026 Loss on sale of Palms 177,664 — — Operating losses from Palms assets held for sale 6,211 — — Interest expense, net 103,206 128,465 156,679 Loss (gain) on extinguishment/modification of debt, net 13,492 (240) 19,939 Change in fair value of derivative instruments 215 21,590 19,467 (Benefit) provision for income tax (69,287) 114,081 (1,734) Other 2,818 333 316 Adjusted EBITDA (b) $ 740,991 $ 368,485 $ 509,015 Adjusted EBITDA Las Vegas operations $ 785,932 $ 335,134 $ 472,921 Native American management 7,809 77,440 85,562 Reportable segment Adjusted EBITDA 793,741 412,574 558,483 Corporate and other (52,750) (44,089) (49,468) Adjusted EBITDA $ 740,991 $ 368,485 $ 509,015 December 31, 2021 2020 Total assets Las Vegas operations $ 2,513,201 $ 3,376,296 Native American management 43,699 31,146 Corporate and other 583,433 332,512 $ 3,140,333 $ 3,739,954 ________________________________ (a) Includes tenant lease revenue which is accounted for under the lease accounting guidance. See Note 16. (b) Adjusted EBITDA includes net income (loss) plus depreciation and amortization, share-based compensation, write-downs and other, net, loss on sale of Palms, operating losses from Palms assets held for sale, interest expense, net, loss |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
Summary of Valuation Allowance [Table Text Block] | Balance at Beginning of Year Additions (deductions) Balance at End of Year Description Deferred income tax asset valuation allowance: 2021 $ 160,470 $ (155,647) $ 4,823 2020 39,856 120,614 160,470 2019 39,968 (112) 39,856 |
Organization and Background (De
Organization and Background (Details) - Casino_Property | Dec. 31, 2021 | Dec. 31, 2020 |
Parent ownership percentage (unconsolidated) | 50.00% | |
Station Holdco [Member] | Red Rock Resorts [Member] | Non-Voting Units [Member] | ||
Parent ownership percentage (consolidated) | 58.40% | 60.70% |
Station Holdco [Member] | Red Rock Resorts [Member] | Voting units | ||
Parent ownership percentage (consolidated) | 100.00% | |
Major Hotel Casino Properties [Member] | Wholly Owned Properties [Member] | ||
Number of casino properties | 9 | |
Smaller Casino Properties [Member] | Wholly Owned Properties [Member] | ||
Number of casino properties | 10 | |
Smaller Casino Properties [Member] | Partially Owned Properties [Member] | ||
Number of casino properties | 3 | |
Parent ownership percentage (unconsolidated) | 50.00% |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)ashares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 17, 2021USD ($) | |
Ownership percentage in joint ventures | 50.00% | |||
Units outstanding (in units) | shares | 110,411,052 | 117,313,972 | ||
Total ownership percentage (consolidated) | 100.00% | 100.00% | ||
Restricted cash included in Other assets, net | $ 31,974 | $ 0 | $ 0 | |
Allowance for doubtful accounts | 7,300 | 8,200 | ||
Land held for development | 186,710 | 258,042 | ||
Loss on sale of Palms | 177,664 | 0 | 0 | |
Net revenues | 1,617,899 | 1,182,445 | 1,856,534 | |
Gaming tax expense | 84,277 | 56,253 | 78,427 | |
Advertising expense | $ 14,278 | 10,205 | 31,678 | |
Percent of realized tax benefits payable to subsidiary under the tax receivable agreement | 85.00% | |||
Disposal Group, No Longer Held-for-sale, Not Discontinued Operations | ||||
Land held for development | $ 24,300 | |||
Number of project sites | 2 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Palms Casino Resort | ||||
Aggregate consideration | $ 650,000 | |||
Net revenues | $ 18,800 | $ 56,600 | 278,800 | |
Pretax income (loss) | (206,100) | (98,300) | (157,400) | |
Complimentary Goods and Services [Member] | ||||
Net revenues | 144,300 | 107,100 | 228,700 | |
Management fees | ||||
Net revenues | $ 9,199 | $ 81,977 | 91,645 | |
Building and Building Improvements [Member] | Minimum [Member] | ||||
Useful life | 10 years | |||
Building and Building Improvements [Member] | Maximum [Member] | ||||
Useful life | 45 years | |||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||||
Useful life | 3 years | |||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||||
Useful life | 10 years | |||
Land Held for Development [Member] | ||||
Area of land | a | 264 | |||
Number of project sites | 6 | |||
Red Rock Resorts [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Basis spread on late payments under the tax receivable agreement | 5.00% | |||
Station Holdco [Member] | Red Rock Resorts [Member] | Non-Voting Units [Member] | ||||
Units outstanding (in units) | shares | 64,425,248 | 71,228,168 | ||
Parent ownership percentage (consolidated) | 58.40% | 60.70% | ||
Station Holdco [Member] | Continuing Owners [Member] | Non-Voting Units [Member] | ||||
Units outstanding (in units) | shares | 45,985,804 | 46,085,804 | ||
Noncontrolling ownership percentage (consolidated) | 41.60% | 39.30% | ||
Station Casinos LLC [Member] | Station Holdco [Member] | ||||
Parent ownership percentage (consolidated) | 100.00% | |||
Federated Indians of Graton Rancheria [Member] | SC Sonoma Management LLC [Member] | Management fees | ||||
Net revenues | $ 7,800 | $ 77,400 | $ 85,600 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 3,178,421 | $ 4,082,054 | |
Accumulated depreciation | (1,168,813) | (1,224,081) | |
Property and equipment, net | 2,009,608 | 2,857,973 | |
Depreciation | 155,966 | 223,846 | $ 213,642 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 219,256 | 271,603 | |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,256,826 | 3,001,283 | |
Furniture, Fixtures and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 633,210 | 800,257 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 69,129 | $ 8,911 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Indefinite-Lived and Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 195,676 | $ 195,676 |
Accumulated goodwill impairment loss | 1,200 | 1,200 |
Finite-lived intangible assets, accumulated amortization | (17,128) | (19,520) |
Intangible assets, gross (excluding goodwill) | 104,300 | 120,337 |
Intangible assets, net (excluding goodwill) | 87,172 | 100,817 |
Net intangibles, gross | 118,142 | |
Net intangibles, accumulated amortization | (18,905) | |
Net intangibles, net | 99,237 | |
Customer Relationships [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 22,800 | 23,600 |
Finite-lived intangible assets, accumulated amortization | (16,019) | (14,726) |
Finite-lived intangible assets, net | $ 6,781 | $ 8,874 |
Customer Relationships [Member] | Minimum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 15 years | 15 years |
Customer Relationships [Member] | Maximum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 15 years | 15 years |
Management Contracts [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 4,000 | $ 4,000 |
Finite-lived intangible assets, accumulated amortization | (1,109) | (1,004) |
Finite-lived intangible assets, net | $ 2,891 | $ 2,996 |
Management Contracts [Member] | Minimum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 7 years | 7 years |
Management Contracts [Member] | Maximum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 20 years | 20 years |
Contract-Based Intangible Assets [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 9,000 | |
Finite-lived intangible assets, accumulated amortization | (1,913) | |
Finite-lived intangible assets, net | $ 7,087 | |
Contract-Based Intangible Assets [Member] | Minimum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 20 years | |
Contract-Based Intangible Assets [Member] | Maximum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 20 years | |
Trademarks [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 6,000 | |
Finite-lived intangible assets, accumulated amortization | (1,700) | |
Finite-lived intangible assets, net | $ 4,300 | |
Trademarks [Member] | Minimum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 15 years | |
Trademarks [Member] | Maximum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 15 years | |
Beneficial Leases [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 237 | |
Finite-lived intangible assets, accumulated amortization | (177) | |
Finite-lived intangible assets, net | $ 60 | |
Beneficial Leases [Member] | Minimum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 6 years | |
Beneficial Leases [Member] | Maximum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 6 years | |
Below Market Lease [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Below market lease, gross | $ 2,195 | |
Below market lease, accumulated amortization | (615) | |
Below market lease, net | $ 1,580 | |
Below Market Lease [Member] | Minimum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 15 years | |
Below Market Lease [Member] | Maximum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 15 years | |
Brands [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets (excluding goodwill) | $ 77,200 | $ 77,200 |
License Rights [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets (excluding goodwill) | $ 300 | $ 300 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortization Expense for Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 1,825 | $ 7,545 | $ 8,569 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 1,625 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,625 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,911 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,911 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 1,092 |
Native American Development - N
Native American Development - North Fork (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)aTable_Gamesgaming_device | Dec. 31, 2020USD ($) | |
Development and Management Agreements, Native American [Line Items] | ||
Native American development costs | $ 34,094 | $ 22,149 |
North Fork Rancheria of Mono Indians (Mono) [Member] | ||
Development and Management Agreements, Native American [Line Items] | ||
Area of land | a | 305 | |
Number of table games | Table_Games | 40 | |
Reimbursable advances for Native American development projects | $ 34,100 | |
Native American development costs | $ 49,200 | |
Property development fee, percent | 4.00% | |
Project management fee, percent | 30.00% | |
Management agreement, term | 7 years | |
Development agreement, term | 7 years | |
Estimated period, after construction begins, facility is completed and open for business | 18 months | |
North Fork Rancheria of Mono Indians (Mono) [Member] | Minimum [Member] | ||
Development and Management Agreements, Native American [Line Items] | ||
Number of slot machines | gaming_device | 2,000 | |
Estimated costs for Native American development projects | $ 350,000 | |
Estimated beginning of construction in months | 6 months | |
Successful project completion, percent | 75.00% | |
North Fork Rancheria of Mono Indians (Mono) [Member] | Maximum [Member] | ||
Development and Management Agreements, Native American [Line Items] | ||
Number of slot machines | gaming_device | 2,500 | |
Estimated costs for Native American development projects | $ 400,000 | |
Successful project completion, percent | 85.00% |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Rewards Program liability | $ 12,711 | $ 17,465 |
Advance deposits and future wagers | 15,897 | 11,854 |
Unpaid wagers, outstanding chips and other customer-related liabilities | 21,963 | 18,248 |
Accrued gaming and related | 25,372 | 20,316 |
Accrued payroll and related | 30,019 | 41,026 |
Construction payables and equipment purchase accruals | 15,437 | 3,710 |
Operating lease liabilities, current portion | 2,976 | 2,936 |
Interest rate swaps | 0 | 11,758 |
Other | 22,734 | 18,764 |
Other accrued liabilities, total | 147,109 | 146,077 |
Contract assets | $ 0 | $ 0 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Nov. 26, 2021 | Dec. 31, 2020 | Feb. 07, 2020 | Sep. 21, 2017 |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 2,853,524 | $ 2,902,007 | |||
Current portion of long-term debt | (25,921) | (22,844) | |||
Long-term debt, net | $ 2,827,603 | 2,879,163 | |||
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 4.50% | 4.50% | |||
Station Casinos LLC [Member] | Line of Credit [Member] | Term Loan B Facility, Due February 7, 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,463,731 | 1,470,944 | |||
Unamortized discount and deferred issuance costs | $ 24,900 | $ 29,500 | |||
Effective interest rate (as a percent) | 2.50% | 2.50% | |||
Station Casinos LLC [Member] | Line of Credit [Member] | Term Loan A Facility, Due February 7, 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 170,819 | $ 179,712 | |||
Unamortized discount and deferred issuance costs | $ 1,600 | $ 2,200 | |||
Effective interest rate (as a percent) | 1.61% | 1.90% | |||
Station Casinos LLC [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility Due February 7, 2025 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | $ 0 | |||
Station Casinos LLC [Member] | Senior Notes [Member] | 4.625% Senior Notes, Due December1, 2031 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 494,015 | 0 | |||
Unamortized discount and deferred issuance costs | $ 6,000 | ||||
Stated interest rate (as a percent) | 4.625% | 4.625% | |||
Station Casinos LLC [Member] | Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 684,170 | 683,257 | |||
Unamortized discount and deferred issuance costs | $ 6,600 | $ 7,600 | |||
Stated interest rate (as a percent) | 4.50% | 4.50% | |||
Station Casinos LLC [Member] | Senior Notes [Member] | 5.00% Senior Notes, Due October 1, 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | $ 526,260 | |||
Unamortized discount and deferred issuance costs | 4,100 | ||||
Stated interest rate (as a percent) | 5.00% | ||||
Station Casinos LLC [Member] | Other Debt Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 40,789 | 41,834 | |||
Unamortized discount and deferred issuance costs | $ 300 | $ 400 | |||
Weighted average interest rate (as a percent) | 3.82% | 3.83% |
Long-term Debt - Credit Facilit
Long-term Debt - Credit Facility (Details) - Station Casinos LLC [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)Rate | |
Line of Credit [Member] | Term Loan B Facility, Due February 7, 2027 [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Periodic Payment, Principal | $ | $ 3.8 |
Line of Credit [Member] | Term Loan B Facility, Due February 7, 2027 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Line of Credit [Member] | Term Loan B Facility, Due February 7, 2027 [Member] | Base Rate [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
Line of Credit [Member] | Term Loan A Facility, Due February 7, 2025 [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Periodic Payment, Principal | $ | $ 2.4 |
Revolving Credit Facility [Member] | Revolving Credit Facility Due February 7, 2025 | |
Debt Instrument [Line Items] | |
Debt Instrument, Unused Borrowing Capacity, Amount | $ | 1,000 |
Letters of Credit Outstanding, Amount | $ | $ 29.4 |
Line of Credit and Revolving Credit Facility [Member] | Maximum [Member] | First Period [Member] | |
Debt Instrument [Line Items] | |
Consolidated Total Leverage Ratio | 6.50 |
Line of Credit and Revolving Credit Facility [Member] | Maximum [Member] | Last Period [Member] | |
Debt Instrument [Line Items] | |
Consolidated Total Leverage Ratio | 5.25 |
Line of Credit and Revolving Credit Facility [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Interest Coverage Ratio | 2.50 |
Line of Credit and Revolving Credit Facility [Member] | Revolving Credit Facility and Term Loan A Facility, Due June 8, 2022 [Member] | |
Debt Instrument [Line Items] | |
Consolidated Total Leverage Ratio | 4 |
Line of Credit and Revolving Credit Facility [Member] | Revolving Credit Facility and Term Loan A Facility, Due June 8, 2022 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.75% |
Line of Credit and Revolving Credit Facility [Member] | Revolving Credit Facility and Term Loan A Facility, Due June 8, 2022 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.50% |
Line of Credit and Revolving Credit Facility [Member] | Revolving Credit Facility and Term Loan A Facility, Due June 8, 2022 [Member] | Base Rate [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | Rate | 0.75% |
Line of Credit and Revolving Credit Facility [Member] | Revolving Credit Facility and Term Loan A Facility, Due June 8, 2022 [Member] | Base Rate [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | Rate | 0.50% |
Long-term Debt - Senior Notes (
Long-term Debt - Senior Notes (Details) - USD ($) $ in Thousands | Nov. 26, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 07, 2020 | Sep. 21, 2017 |
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 2,892,898 | |||||
Loss on Extinguishment of Debt | $ (13,492) | $ 240 | $ (19,939) | |||
Senior Notes [Member] | 4.625% Senior Notes, Due December1, 2031 [Member] | Last Period [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
Senior Notes [Member] | 4.625% Senior Notes, Due December1, 2031 [Member] | Redemption Due to Change in Control [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Redemption Price, Percentage | 101.00% | |||||
Senior Notes [Member] | 4.625% Senior Notes, Due December1, 2031 [Member] | Redemption Due to Certain Asset Sales [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (as a percent) | 4.50% | 4.50% | ||||
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | First Period [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Redemption Price, Percentage | 102.25% | |||||
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | Second Period [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Redemption Price, Percentage | 101.125% | |||||
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | Third Period [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | Redemption Due to Change in Control [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Redemption Price, Percentage | 101.00% | |||||
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | Redemption Due to Certain Asset Sales [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
Station Casinos LLC [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | $ 344,000 | |||||
Station Casinos LLC [Member] | Senior Notes [Member] | 4.625% Senior Notes, Due December1, 2031 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 500,000 | |||||
Stated interest rate (as a percent) | 4.625% | 4.625% | ||||
Station Casinos LLC [Member] | Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 750,000 | |||||
Stated interest rate (as a percent) | 4.50% | 4.50% | ||||
Station Casinos LLC [Member] | Senior Notes [Member] | 5.00% Senior Notes, Due October 1, 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 550,000 | |||||
Stated interest rate (as a percent) | 5.00% | |||||
Loss on Extinguishment of Debt | $ 13,500 | |||||
Redemption Premium | 9,800 | |||||
Write off of Deferred Debt Issuance Cost | $ 3,700 |
Long-term Debt - Principal Matu
Long-term Debt - Principal Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 25,921 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 25,965 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 26,011 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 196,524 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 15,350 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 2,603,127 | |
Long-term Debt, Gross | 2,892,898 | |
Debt Instrument, Unamortized Discount and Debt Issue Costs | (39,374) | |
Long-term Debt | $ 2,853,524 | $ 2,902,007 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Rate Swap [Member] | Interest Expense, Net [Member] | |||
Derivative [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | $ (1,400) | $ (2,800) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 0 | $ 11,758,000 |
Aggregate fair value of long-term debt | 2,887,000,000 | 2,936,000,000 |
Aggregate carrying amount of long-term debt | 2,853,524,000 | 2,902,007,000 |
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | $ 0 | 11,800,000 |
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 11,800,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022$ / shares | Dec. 31, 2021USD ($)decimalClassvote$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Feb. 01, 2019USD ($) | |
Schedule of Capitalization, Equity [Line Items] | |||||
Number of Classes of Stock Authorized | Class | 2 | ||||
Preferred Stock, Shares Authorized | shares | 100,000,000 | 100,000,000 | |||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | |||
Preferred Stock, Shares Issued | shares | 0 | 0 | |||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 3 | $ 0.10 | |||
Stock Repurchased and Retired During Period, Value | $ | $ 500,894 | $ 81 | $ 376 | ||
Exchange Ratio | decimal | 0.9535 | ||||
Stock Issued During Period, Shares, Conversion of Units | shares | 100,000 | 741,000 | 57,000 | ||
Equity Repurchase Program | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ | $ 300,000 | $ 150,000 | |||
Stock Repurchased and Retired During Period, Shares | shares | 3,517,043 | ||||
Stock Repurchased and Retired During Period, Value | $ | $ 142,800 | ||||
Stock Repurchased and Retired During Period, Weighted Average Price per Share | $ / shares | $ 40.59 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 154,400 | ||||
Equity Tender | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Stock Repurchased and Retired During Period, Shares | shares | 6,884,858 | ||||
Stock Repurchased and Retired During Period, Value | $ | $ 354,600 | ||||
Stock Repurchased and Retired During Period, Weighted Average Price per Share | $ / shares | $ 51.50 | ||||
Common Class A [Member] | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Common Stock, Shares Authorized | shares | 500,000,000 | 500,000,000 | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | |||
Economic interest percentage | 100.00% | ||||
Common Stock, Voting Rights, Number of Votes | vote | 1 | ||||
Common Class B [Member] | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Common Stock, Shares Authorized | shares | 100,000,000 | 100,000,000 | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.00001 | $ 0.00001 | |||
Common Stock, Voting Rights, Number of Votes | vote | 1 | ||||
Station Holdco [Member] | Common Class B [Member] | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Common Stock, Voting Rights, Number of Votes | vote | 10 | ||||
Minimum [Member] | Station Holdco [Member] | Common Class A [Member] | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 10.00% | ||||
Minimum [Member] | Station Holdco [Member] | Common Class B [Member] | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 30.00% | ||||
Subsequent Event [Member] | |||||
Schedule of Capitalization, Equity [Line Items] | |||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.25 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ (623) | |
Ending balance | 0 | $ (623) |
AOCI Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (623) | (641) |
Unrealized loss arising during the period | (410) | (406) |
Amounts reclassified into income | 1,014 | 427 |
Net current-period other comprehensive income | 604 | 21 |
Exchanges of noncontrolling interests for Class A common stock and rebalancing | 19 | (3) |
Ending balance | 0 | (623) |
AOCI Attributable to Parent [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | (174) |
Unrealized loss arising during the period | 0 | 0 |
Amounts reclassified into income | 0 | 178 |
Net current-period other comprehensive income | 0 | 178 |
Exchanges of noncontrolling interests for Class A common stock and rebalancing | 0 | (4) |
Ending balance | 0 | 0 |
AOCI Attributable to Parent [Member] | Unrecognized Pension Liability [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (623) | (467) |
Unrealized loss arising during the period | (410) | (406) |
Amounts reclassified into income | 1,014 | 249 |
Net current-period other comprehensive income | 604 | (157) |
Exchanges of noncontrolling interests for Class A common stock and rebalancing | 19 | 1 |
Ending balance | $ 0 | $ (623) |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Ownership of Station Holdco LLC (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income (loss) attributable to Red Rock Resorts, Inc. | $ 241,850 | $ (150,397) | $ (3,351) |
Exchanges of noncontrolling interests for Class A common stock | 2,822 | 0 | 0 |
Rebalancing of ownership percentage between the Company and noncontrolling interests of Station Holdco | 0 | 0 | 0 |
Net transfers from (to) noncontrolling interests | 137,857 | 494 | (7,991) |
Change from net income (loss) attributable to Red Rock Resorts, Inc. and net transfers from (to) noncontrolling interests | 379,707 | (149,903) | (11,342) |
Noncontrolling Interest [Member] | |||
Exchanges of noncontrolling interests for Class A common stock | 598 | 4,412 | 370 |
Rebalancing of ownership percentage between the Company and noncontrolling interests of Station Holdco | 137,259 | (3,918) | (8,361) |
Additional Paid-in Capital [Member] | |||
Exchanges of noncontrolling interests for Class A common stock | 2,223 | (4,404) | (368) |
Rebalancing of ownership percentage between the Company and noncontrolling interests of Station Holdco | $ (137,239) | $ 3,914 | $ 8,365 |
Share-based Compensation Text (
Share-based Compensation Text (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 2,430 | $ 8,789 | $ 2,101 |
Share-based compensation | 12,728 | 10,886 | 16,848 |
Share-based compensation expense | 12,728 | 10,886 | 16,848 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 23,980 | $ 498 | $ 1,517 |
Common Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of profit units that may be issued | 23,600,000 | ||
Nonvested profit units, total compensation cost not yet recognized | $ 19,700 | ||
Nonvested profit units, total compensation cost not yet recognized, period for recognition | 2 years 8 months 12 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 12,900,000 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested profit units, total compensation cost not yet recognized | $ 4,900 | ||
Nonvested profit units, total compensation cost not yet recognized, period for recognition | 2 years 4 months 24 days | ||
Share-based Payment Arrangement, Option [Member] | Common Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,336,423 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 6,562,539 | 6,310,657 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 14.60 | $ 0 | $ 7.20 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.60% | 2.30% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 59.10% | 32.20% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | 5 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 1.40% | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | ||
Share-based Payment Arrangement, Option [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 29.33 | $ 27.22 | $ 27.01 |
Restricted Stock [Member] | Common Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 153,050 | ||
Restricted Stock [Member] | Executive Officer [Member] | Common Class A [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 2 years | ||
Restricted Stock [Member] | Executive Officer [Member] | Common Class A [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | ||
Restricted Stock [Member] | Director [Member] | Common Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 1 year |
Share-based Compensation Awards
Share-based Compensation Awards Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
StockOptionsWithheldForExercisePrice | 632,493 | ||
Common Class A [Member] | Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 6,562,539 | 6,310,657 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 25.67 | $ 25.80 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,336,423 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 29.31 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | [1] | (1,138,783) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 22.16 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (334,799) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 24.92 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period | [2] | (389,041) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 1 month 6 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 192,643 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 3,179,585 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 26.21 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 91,647 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 3,382,954 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 25.16 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 3 months 18 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 100,997 | ||
Common Class A [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested units, beginning balance | 368,811 | ||
Granted | 153,050 | ||
Vested | (90,354) | ||
Forfeited | (39,121) | ||
Nonvested units, ending balance | 392,386 | 368,811 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Nonvested units, Weighted-average grant date fair value, beginning balance | $ 27.19 | ||
Units granted, Weighted-average grant date fair value | 29.33 | ||
Vested, Weighted-average grant date fair value | 26.89 | ||
Forfeited, Weighted-average grant date fair value | 23.46 | ||
Nonvested units, Weighted-average grant date fair value, ending balance | $ 28.47 | $ 27.19 | |
[1] | Includes 632,493 options that were not converted into shares due to net share settlements to cover the aggregate exercise price and employee withholding taxes. | ||
[2] | As a result of the Special Dividend, all outstanding stock option awards were adjusted to decrease the exercise price of the options and increase the number of shares issuable under the awards pursuant to an antidilution provision in the Equity Incentive Plan. |
Share-based Compensation Weight
Share-based Compensation Weighted Average Assumptions (Details) - Share-based Payment Arrangement, Option [Member] - Common Class A [Member] | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.60% | 2.30% |
Expected volatility | 59.10% | 32.20% |
Expected life (in years) | 5 years | 5 years |
Dividend yield | 0.00% | 1.40% |
Share-based Compensation Alloca
Share-based Compensation Allocation of Recognized Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation | $ 12,728 | $ 10,886 | $ 16,848 |
Casino | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation | 402 | 321 | 458 |
Food and beverage | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation | 30 | (68) | 202 |
Room [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation | 44 | 12 | 11 |
Selling, general and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation | $ 12,252 | $ 10,621 | $ 16,177 |
Write-downs and Other, Net (Det
Write-downs and Other, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Write-downs and other, net | $ (18,677) | $ 36,522 | $ 82,026 |
Palms Casino Resort | |||
Loss on Contract Termination | 39,800 | ||
Pre-Opening Costs | $ 25,900 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Percent | (24.26%) | (188.68%) | 20.47% | |
Operating Loss Carryforwards | $ 60,200 | |||
Unrecognized Tax Benefits | 2,200 | |||
Unrecognized Tax Benefits | 2,249 | $ 1,237 | $ 1,004 | $ 0 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 1,012 | 142 | 519 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 0 | 91 | 485 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Federal | 4,874 | 0 | 0 | |
State and local | 0 | 0 | 1 | |
Total current income taxes | 4,874 | 0 | 1 | |
Federal | (74,161) | 113,977 | (1,721) | |
State and local | 0 | 104 | (14) | |
Total deferred income taxes | (74,161) | 114,081 | (1,735) | |
Total income tax (benefit) expense | (69,287) | 114,081 | (1,734) | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Expected U.S. federal income taxes at statutory rate | 59,964 | (12,697) | (1,779) | |
Income attributable to noncontrolling interests | (23,726) | 5,071 | 711 | |
Share-based compensation contribution | (5,679) | (909) | (762) | |
Change in valuation allowance | (99,997) | 119,900 | 642 | |
Other | 151 | 2,716 | (546) | |
Total income tax (benefit) expense | (69,287) | 114,081 | (1,734) | |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Tax credit carryforwards | 0 | 5,920 | ||
Net operating loss carryforwards and other attributes | 13,352 | 81,233 | ||
Investment in partnership | 84,393 | 67,559 | ||
Payable pursuant to tax receivable agreement | 5,703 | 5,758 | ||
Total gross deferred tax assets | 103,448 | 160,470 | ||
Valuation allowance | (4,823) | (160,470) | ||
Total deferred tax assets, net of valuation allowance | 98,625 | 0 | ||
Decrease in valuation allowance on deferred tax assets | $ 100,000 | |||
Related Party Transaction [Line Items] | ||||
Percent of realized tax benefits payable to subsidiary under the tax receivable agreement | 85.00% | |||
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests | $ 641 | 2,345 | 213 | |
Recognition of deferred tax assets resulting from exchanges of noncontrolling interests | $ 100 | |||
Tax Receivable Agreement, Estimated Tax Liability | 27,200 | $ 27,400 | ||
Pre-tax Attributes [Member] | ||||
Tax Credit Carryforward, Amount | 3,400 | |||
Frank J. Fertitta III and Lorenzo J Fertitta [Member] | ||||
Related Party Transaction [Line Items] | ||||
Tax Receivable Agreement, Estimated Tax Liability | $ 9,000 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Defined contribution 401(k) plan, employer matching contribution, percent of match | 50.00% | ||
Defined contribution 401(k) plan, employee contributions subject to employer match (percent) | 4.00% | ||
401(k) plan, expense for matching contributions | $ 8,500 | $ 8,600 | $ 4,200 |
401(k) plan, employer discretionary contribution amount | 5,300 | 5,200 | |
Defined Benefit Plan, Pension Benefit Obligation | |||
Defined Benefit Plan, Benefit Obligation | 0 | 12,899 | 14,185 |
Defined Benefit Plan, Interest Cost | 300 | 428 | 517 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 224 | 389 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (322) | (515) | |
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | 13,101 | 1,588 | |
Defined Benefit Plan, Plan Assets, Amount | 0 | 11,760 | 9,526 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | (552) | 385 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 2,215 | 3,952 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | (322) | (515) | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 13,101 | 1,588 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 0 | (1,139) | |
Defined Benefit Plan, Net Periodic Pension Benefit Cost | |||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (109) | (256) | (187) |
Defined Benefit Plan, Amortization of Gain (Loss) | (2) | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 2,186 | 160 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 2,379 | 332 | 330 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 885 | 260 | 532 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | 2 | 0 | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), after Tax | (2,186) | (160) | 0 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | (1,303) | 100 | 532 |
Defined Benefit Plan, Amount Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Income) Loss, before Tax | 1,076 | 432 | $ 862 |
Liability, Defined Benefit Plan, Noncurrent | 0 | 1,139 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | $ 0 | $ 1,303 | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 0.00% | 3.20% | 4.15% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 0.00% | 5.80% | 5.80% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 0.00% | 2.45% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 0.00% | 2.04% | |
Lump-sum Payment | |||
Defined Benefit Plan, Pension Benefit Obligation | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 7,500 | ||
Annuity Payments | |||
Defined Benefit Plan, Pension Benefit Obligation | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 4,500 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Pension Benefit Obligation | |||
Defined Benefit Plan, Plan Assets, Amount | $ 11,800 | ||
Fixed Income Securities | |||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 46,086 | 46,827 |
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | |||
Net income (loss) | $ 354,830 | $ (174,543) | $ (6,737) |
Less: net (income) loss attributable to noncontrolling interests, basic | (112,980) | 24,146 | 3,386 |
Net income (loss) attributable to Red Rock Resorts, Inc. | 241,850 | (150,397) | (3,351) |
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | |||
Net income (loss) attributable to Red Rock Resorts, Inc. | 241,850 | (150,397) | (3,351) |
Effect of dilutive securities | (89,252) | 0 | 0 |
Net income (loss) attributable to Red Rock, diluted | $ 331,102 | $ (150,397) | $ (3,351) |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Basic | 69,071 | 70,542 | 69,565 |
Effect of dilutive securities | 47,381 | 0 | 0 |
Diluted | 116,452 | 70,542 | 69,565 |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 43 | 6,311 | 7,397 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5 | 369 | 712 |
Leases Lessee Disclosures (Deta
Leases Lessee Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 5,159 | $ 4,995 | $ 5,185 |
Short-term lease cost | 917 | 1,895 | 7,073 |
Variable lease cost | 24,153 | 17,400 | 28,749 |
Total lease expense | 30,229 | 24,290 | 41,007 |
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | 21,143 | 11,483 | |
Operating lease liabilities, current portion | 2,976 | 2,936 | |
Operating lease liabilities, noncurrent portion | 21,880 | 10,950 | |
Total operating lease liabilities | $ 24,856 | $ 13,886 | |
Weighted-average remaining lease term - operating leases (years) | 23 years 6 months | 36 years 1 month 6 days | |
Weighted-average discount rate - operating leases | 4.82% | 5.32% | |
Operating cash flows from operating leases | $ 4,602 | $ 4,387 | 5,842 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 15,106 | $ 1,336 | $ 0 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 3,960 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 2,949 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 2,982 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 2,887 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 2,811 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 46,933 | ||
Lessee, Operating Lease, Liability, Payments, Due | 62,522 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ (37,666) |
Leases Lessor Disclosures (Deta
Leases Lessor Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessor, Lease, Description [Line Items] | |||
Revenue from tenant leases | $ 16,000 | $ 13,100 | $ 24,200 |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |||
Lessor, Operating Lease, Payments to be Received, Next Twelve Months | 6,998 | ||
Lessor, Operating Lease, Payments to be Received, Two Years | 5,499 | ||
Lessor, Operating Lease, Payments to be Received, Three Years | 3,919 | ||
Lessor, Operating Lease, Payments to be Received, Four Years | 2,267 | ||
Lessor, Operating Lease, Payments to be Received, Five Years | 1,157 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 2,916 | ||
Lessor, Operating Lease, Payments to be Received | $ 22,756 | ||
Minimum [Member] | |||
Lessor, Lease, Description [Line Items] | |||
Lessor operating leases - term of contract | 1 year | ||
Maximum [Member] | |||
Lessor, Lease, Description [Line Items] | |||
Lessor operating leases - term of contract | 19 years |
Segments (Details)
Segments (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | ||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 1,617,899 | $ 1,182,445 | $ 1,856,534 | |
Net income (loss) | 354,830 | (174,543) | (6,737) | |
Depreciation and amortization | 157,791 | 231,391 | 222,211 | |
Share-based compensation | 12,728 | 10,886 | 16,848 | |
Write-downs and other, net | (18,677) | 36,522 | 82,026 | |
Loss on sale of Palms | 177,664 | 0 | 0 | |
Operating losses from Palms assets held for sale | 6,211 | 0 | 0 | |
Interest expense, net | 103,206 | 128,465 | 156,679 | |
Loss (gain) on extinguishment/modification of debt, net | 13,492 | (240) | 19,939 | |
Change in fair value of derivative instruments | 215 | 21,590 | 19,467 | |
(Benefit) provision for income tax | 69,287 | (114,081) | 1,734 | |
Other | 2,818 | 333 | (316) | |
Adjusted EBITDA | [1] | 740,991 | 368,485 | 509,015 |
Assets | 3,140,333 | 3,739,954 | ||
Capital expenditures | 61,295 | 58,496 | 353,269 | |
Casino | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,142,606 | 764,255 | 984,253 | |
Food and beverage | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 245,432 | 192,899 | 481,558 | |
Room | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 143,916 | 87,035 | 192,305 | |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 76,746 | 56,279 | 106,773 | |
Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 9,199 | 81,977 | 91,645 | |
Las Vegas Operations | ||||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 1 | |||
Net revenues | $ 1,602,438 | 1,094,442 | 1,758,760 | |
Adjusted EBITDA | 785,932 | 335,134 | 472,921 | |
Assets | 2,513,201 | 3,376,296 | ||
Capital expenditures | 61,300 | 58,500 | 353,300 | |
Las Vegas Operations | Casino | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,142,606 | 764,255 | 984,253 | |
Las Vegas Operations | Food and beverage | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 245,432 | 192,899 | 481,558 | |
Las Vegas Operations | Room | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 143,916 | 87,035 | 192,305 | |
Las Vegas Operations | Other | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | [2] | 69,577 | 49,716 | 100,073 |
Las Vegas Operations | Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 907 | 537 | 571 | |
Native American Management | ||||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 1 | |||
Adjusted EBITDA | $ 7,809 | 77,440 | 85,562 | |
Assets | 43,699 | 31,146 | ||
Native American Management | Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 8,292 | 81,440 | 91,074 | |
Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,610,730 | 1,175,882 | 1,849,834 | |
Adjusted EBITDA | 793,741 | 412,574 | 558,483 | |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (52,750) | (44,089) | (49,468) | |
Assets | 583,433 | 332,512 | ||
Corporate and Other | Other | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | [2] | $ 7,169 | $ 6,563 | $ 6,700 |
[1] | Adjusted EBITDA includes net income (loss) plus depreciation and amortization, share-based compensation, write-downs and other, net, loss on sale of Palms, operating losses from Palms assets held for sale, interest expense, net, loss (gain) on extinguishment/modification of debt, net, change in fair value of derivative instruments, provision (benefit) for income tax and other. | |||
[2] | Includes tenant lease revenue which is accounted for under the lease accounting guidance. See Note 16. |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 160,470 | $ 39,856 | $ 39,968 |
Additions (deductions) | (155,647) | 120,614 | (112) |
Balance at End of Year | $ 4,823 | $ 160,470 | $ 39,856 |