Document and Entity Information
Document and Entity Information | 3 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | MOHEGAN TRIBAL GAMING AUTHORITY |
Entity Central Index Key | 0001005276 |
Current Fiscal Year End Date | --09-30 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 139,164 | $ 130,138 |
Restricted cash and cash equivalents | 6,706 | 4,960 |
Accounts receivable, net of allowance for doubtful accounts of $12,007 and $11,715, respectively | 55,388 | 52,764 |
Inventories | 17,794 | 18,248 |
Due from Ontario Lottery and Gaming Corporation | 11,905 | 10,946 |
Casino Operating and Services Agreement customer contract asset | 471 | 3,004 |
Other current assets | 57,319 | 47,276 |
Total current assets | 288,747 | 267,336 |
Restricted cash and cash equivalents | 136,014 | 145,631 |
Property and equipment, net | 1,444,019 | 1,520,687 |
Right-of-use operating lease assets | 361,036 | 0 |
Other intangible assets, net | 456,672 | 455,265 |
Casino Operating and Services Agreement customer contract asset, net of current portion | 95,208 | 50,192 |
Notes receivable | 2,514 | 2,514 |
Other assets, net | 71,314 | 69,971 |
Total assets | 2,855,524 | 2,511,596 |
Current liabilities: | ||
Current portion of long-term debt | 74,266 | 76,909 |
Current portion of finance lease obligations | 1,794 | 1,133 |
Current portion of right-of-use operating lease obligations | 9,894 | 0 |
Trade payables | 20,811 | 16,672 |
Accrued payroll | 48,853 | 53,225 |
Construction payables | 24,040 | 11,888 |
Accrued interest payable | 10,070 | 19,804 |
Due to Ontario Lottery and Gaming Corporation | 38,413 | 30,662 |
Other current liabilities | 171,585 | 174,231 |
Total current liabilities | 399,726 | 384,524 |
Long-term debt, net of current portion | 1,885,752 | 1,832,248 |
Finance lease obligations, net of current portion | 30,043 | 28,561 |
Right-of-use operating lease obligations, net of current portion | 359,848 | 0 |
Build-to-suit liability | 0 | 90,292 |
Other long-term liabilities | 34,194 | 38,538 |
Total liabilities | 2,709,563 | 2,374,163 |
Commitments and Contingencies | ||
Capital: | ||
Retained earnings | 134,205 | 137,124 |
Accumulated other comprehensive income (loss) | 4,253 | (6,633) |
Total capital attributable to Mohegan Tribal Gaming Authority | 138,458 | 130,491 |
Non-controlling interests | 7,503 | 6,942 |
Total capital | 145,961 | 137,433 |
Total liabilities and capital | $ 2,855,524 | $ 2,511,596 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 12,007 | $ 11,715 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | ||
Net revenues | $ 399,052 | $ 319,500 |
Operating costs and expenses: | ||
Advertising, general and administrative, including related party transactions of $9,566 and $11,332, respectively | 74,214 | 49,018 |
Corporate, including related party transactions of $2,253 and $1,397, respectively | 14,090 | 12,425 |
Depreciation and amortization | 28,544 | 27,090 |
Other, net | 3,070 | 1,921 |
Total operating costs and expenses | 355,627 | 276,130 |
Income from operations | 43,425 | 43,370 |
Other income (expense): | ||
Interest income | 751 | 3,439 |
Interest expense | (35,356) | (36,010) |
Other, net | (592) | (30) |
Total other expense | (35,197) | (32,601) |
Income before income tax | 8,228 | 10,769 |
Income tax benefit (provision) | 1,196 | (61) |
Net income | 9,424 | 10,708 |
Income attributable to non-controlling interests | (30) | (86) |
Net income attributable to Mohegan Tribal Gaming Authority | 9,394 | 10,622 |
Comprehensive income: | ||
Foreign currency translation adjustment | 11,417 | 1,899 |
Other comprehensive income | 11,417 | 1,899 |
Other comprehensive income attributable to non-controlling interests | (531) | (95) |
Other comprehensive income attributable to Mohegan Tribal Gaming Authority | 10,886 | 1,804 |
Comprehensive income attributable to Mohegan Tribal Gaming Authority | 20,280 | 12,426 |
Gaming | ||
Revenues: | ||
Net revenues | 264,269 | 221,935 |
Operating costs and expenses: | ||
Operating costs and expenses | 157,188 | 128,664 |
Food and beverage | ||
Revenues: | ||
Net revenues | 50,532 | 34,806 |
Operating costs and expenses: | ||
Operating costs and expenses | 41,693 | 26,447 |
Hotel | ||
Revenues: | ||
Net revenues | 27,589 | 22,977 |
Operating costs and expenses: | ||
Operating costs and expenses | 11,842 | 9,803 |
Retail, entertainment and other | ||
Revenues: | ||
Net revenues | 56,662 | 39,782 |
Operating costs and expenses: | ||
Operating costs and expenses | $ 24,986 | $ 20,762 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Advertising, general and administrative | $ 74,214 | $ 49,018 |
Corporate | 14,090 | 12,425 |
Gaming | ||
Operating costs and expenses | 157,188 | 128,664 |
Hotel | ||
Operating costs and expenses | 11,842 | 9,803 |
Affiliates | ||
Advertising, general and administrative | 9,566 | 11,332 |
Corporate | 2,253 | 1,397 |
Affiliates | Gaming | ||
Operating costs and expenses | 755 | 702 |
Affiliates | Hotel | ||
Operating costs and expenses | $ 2,161 | $ 2,161 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2018 | |
Statements of Changes in Capital | |||
Total capital at beginning of period | $ 137,433 | $ 270,794 | |
Cumulative-effect adjustment for the adoption of ASC 606 Revenue from Contracts with Customers | $ (41,575) | ||
Net income | 9,424 | 10,708 | |
Foreign currency translation adjustment | 11,417 | 1,899 | |
Distributions to Mohegan Tribe | (12,000) | (12,000) | |
Distributions to Salishan Company, LLC related to the Cowlitz Project | (313) | ||
Redemption of membership interest related to the New England Black Wolves franchise | 75 | ||
Total capital at end of period | 145,961 | 229,901 | |
Retained Earnings | |||
Statements of Changes in Capital | |||
Total capital at beginning of period | 137,124 | 250,707 | |
Cumulative-effect adjustment for the adoption of ASC 606 Revenue from Contracts with Customers | (41,575) | ||
Net income | 9,394 | 10,622 | |
Distributions to Mohegan Tribe | (12,000) | (12,000) | |
Distributions to Salishan Company, LLC related to the Cowlitz Project | (313) | ||
Redemption of membership interest related to the New England Black Wolves franchise | (4,499) | ||
Total capital at end of period | 134,205 | 203,255 | |
Accumulated Other Comprehensive Income (Loss) | |||
Statements of Changes in Capital | |||
Total capital at beginning of period | (6,633) | 11,062 | |
Foreign currency translation adjustment | 10,886 | 1,804 | |
Total capital at end of period | 4,253 | 12,866 | |
Total Capital Attributable to Mohegan Tribal Gaming Authority | |||
Statements of Changes in Capital | |||
Total capital at beginning of period | 130,491 | 261,769 | |
Cumulative-effect adjustment for the adoption of ASC 606 Revenue from Contracts with Customers | $ (41,575) | ||
Net income | 9,394 | 10,622 | |
Foreign currency translation adjustment | 10,886 | 1,804 | |
Distributions to Mohegan Tribe | (12,000) | (12,000) | |
Distributions to Salishan Company, LLC related to the Cowlitz Project | (313) | ||
Redemption of membership interest related to the New England Black Wolves franchise | (4,499) | ||
Total capital at end of period | 138,458 | 216,121 | |
Non-controlling Interests | |||
Statements of Changes in Capital | |||
Total capital at beginning of period | 6,942 | 9,025 | |
Net income | 30 | 86 | |
Foreign currency translation adjustment | 531 | 95 | |
Distributions to Salishan Company, LLC related to the Cowlitz Project | 0 | ||
Redemption of membership interest related to the New England Black Wolves franchise | 4,574 | ||
Total capital at end of period | $ 7,503 | $ 13,780 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows provided by (used in) operating activities: | ||
Net income | $ 9,424 | $ 10,708 |
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: | ||
Depreciation and amortization | 28,544 | 27,090 |
Non-cash operating lease expense | 3,273 | |
Accretion of discounts | 317 | 194 |
Amortization of discounts and debt issuance costs | 4,550 | 4,845 |
Provision for losses on receivables | 321 | 369 |
Deferred income tax provision | (1,316) | 0 |
Other, net | 244 | (247) |
Changes in operating assets and liabilities, net of effect of the MGE Niagara Resorts acquisition: | ||
Accounts receivable | (2,657) | (5,594) |
Accrued interest on notes receivable related to the Cowlitz Project | 0 | 72,166 |
Inventories | 510 | 476 |
Due from Ontario Lottery and Gaming Corporation | (761) | 0 |
Casino Operating and Services Agreement customer contract asset | (40,976) | 0 |
Other assets | (9,033) | (2,189) |
Trade payables | 4,058 | (655) |
Accrued interest | (9,743) | (10,025) |
Due to Ontario Lottery and Gaming Corporation | 8,591 | 0 |
Operating lease liabilities | (2,057) | |
Other liabilities | (4,247) | (16,087) |
Net cash flows provided by (used in) operating activities | (10,958) | 81,051 |
Cash flows provided by (used in) investing activities: | ||
Purchases of property and equipment | (22,218) | (14,064) |
Acquisition of the MGE Niagara Resorts, net of cash acquired | (1,666) | 0 |
Proceeds from notes receivable related to the Cowlitz Project | 0 | 32,026 |
Other, net | (1,390) | (1,364) |
Net cash flows provided by (used in) investing activities | (25,274) | 16,598 |
Cash flows provided by (used in) financing activities: | ||
Other borrowings | 0 | 11,335 |
Other repayments | (6,458) | (1,450) |
Payments on finance lease obligations | (404) | 0 |
Distributions | (12,000) | (12,000) |
Other, net | (1,527) | (6,776) |
Net cash flows provided by (used in) financing activities | 30,386 | (17,749) |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | (5,846) | 79,900 |
Effect of exchange rate on cash, cash equivalents, restricted cash and restricted cash equivalents | 7,001 | 641 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 280,729 | 234,626 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 281,884 | 315,167 |
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents to the condensed consolidated balance sheets: | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 281,884 | 315,167 |
Supplemental disclosures: | ||
Cash paid for interest | 40,388 | 41,190 |
Non-cash transactions: | ||
Right-of-use operating lease assets | 359,909 | |
Right-of-use operating lease obligations | 360,054 | |
Construction payables | 24,040 | 9,732 |
Credit Facility | Bank of America, N.A. Revolving and Line of Credit | ||
Cash flows provided by (used in) financing activities: | ||
Senior secured credit facility borrowings - revolving and line of credit | 326,222 | 360,712 |
Senior secured credit facility repayments | (291,147) | (350,712) |
Credit Facility | Senior Secured Credit Facility, Term Loan A and Term Loan B | ||
Non-cash transactions: | ||
Senior secured credit facility reductions | 13,295 | 28,858 |
Credit Facility | MGE Niagara Resorts Credit Facility - Revolving | ||
Cash flows provided by (used in) financing activities: | ||
Senior secured credit facility borrowings - revolving and line of credit | 41,864 | 0 |
Credit Facility | MGE Niagara Credit Facility | ||
Cash flows provided by (used in) financing activities: | ||
Senior secured credit facility repayments | (11,596) | 0 |
Convertible Debenture | Senior Secured Credit Facility, Term Loan A and Term Loan B | ||
Cash flows provided by (used in) financing activities: | ||
Senior secured credit facility repayments | (13,295) | (18,858) |
Convertible Debenture | MGE Niagara Credit Facility | ||
Cash flows provided by (used in) financing activities: | ||
Senior secured credit facility repayments | (960) | 0 |
Salishan Company, LLC | ||
Cash flows provided by (used in) financing activities: | ||
Distributions | $ (313) | $ 0 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION: Organization The Mohegan Tribe of Indians of Connecticut (the “Mohegan Tribe”) established the Mohegan Tribal Gaming Authority in July 1995 with the exclusive authority to conduct and regulate gaming activities for the Mohegan Tribe on tribal lands and the non-exclusive authority to conduct such activities elsewhere. The Mohegan Tribe is a sovereign Indian nation with independent legal jurisdiction over its people and land. Like other sovereign governments, the Mohegan Tribe and its entities, including the Mohegan Tribal Gaming Authority, are generally not subject to federal, state or local income taxes. However, MGE Niagara Entertainment Inc. (“MGE Niagara”), a wholly-owned subsidiary, is subject to tax in Ontario, Canada, and certain non-tribal entities are subject to state or local income taxes in the United States. The Mohegan Tribal Gaming Authority d/b/a Mohegan Gaming & Entertainment (the “Company”) is primarily engaged in the ownership, operation and development of integrated entertainment facilities both domestically and internationally, including Mohegan Sun, a gaming and entertainment complex located on an approximately 196 -acre site in Uncasville, Connecticut, and Mohegan Sun Pocono, a gaming and entertainment facility located on an approximately 400 -acre site in Plains Township, Pennsylvania. In September 2018, MGE Niagara was selected by the Ontario Lottery and Gaming Corporation (the “OLG”) to be the service provider for the Niagara Fallsview Casino Resort, Casino Niagara and the future 5,000 -seat Niagara Falls Entertainment Centre, all in Niagara Falls, Canada (collectively, the “MGE Niagara Resorts”). On June 11, 2019 (the “Closing Date”), MGE Niagara completed the acquisition of the MGE Niagara Resorts (the “Acquisition”) and assumed the day-to-day operations of the properties under the terms of a 21 -year Casino Operating and Services Agreement (the “COSA”) with the OLG. The Company also (i) owns 100% of Salishan-Mohegan, LLC (“Salishan-Mohegan”), which developed and currently manages ilani Casino Resort in Clark County, Washington, a gaming and entertainment facility owned by the federally-recognized Cowlitz Indian Tribe and the Cowlitz Tribal Gaming Authority, (ii) holds the development rights to any future development at ilani Casino Resort through Salishan-Mohegan Development Company, LLC, a majority-owned subsidiary of Salishan-Mohegan, (iii) manages Resorts Casino Hotel in Atlantic City, New Jersey, and owns 10% of the casino’s holding company and its subsidiaries, including those conducting or licensing online gaming and retail sports wagering in New Jersey, (iv) manages Paragon Casino Resort in Marksville, Louisiana and (v) owns 100% of Inspire Integrated Resort Co., Ltd. and MGA Korea, LLC, which were formed to develop and construct an integrated resort and casino project to be located adjacent to the Incheon International Airport in South Korea. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and with instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In accordance with Rule 10-01, the accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete consolidated financial statements. The accompanying year-end condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by US GAAP. All adjustments, including normal recurring accruals and adjustments, necessary for a fair statement of the Company's operating results for the interim period, have been included. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2019. The preparation of financial statements in conformity with US GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. Revenue Disaggregation The Company is primarily engaged in the ownership, operation and development of integrated entertainment facilities both domestically and internationally. The Company’s current wholly-owned operations are focused within Connecticut and Pennsylvania. The Company also currently manages other gaming facilities elsewhere within the United States and Canada. The Company generates revenues by providing the following types of goods and services: gaming, food and beverage, hotel, retail, entertainment and other and management and development. Revenue disaggregation by geographic location and revenue type for the three months ended December 31, 2019 was as follows (in thousands): Connecticut Pennsylvania Canada (Mohegan Sun) (Mohegan Sun Pocono) (MGE Niagara Resorts) Other Gaming $ 160,259 $ 51,978 $ 52,032 $ — Food and beverage 28,533 6,082 15,953 (36 ) Hotel 22,048 1,980 3,563 (2 ) Retail, entertainment and other 32,495 1,914 13,426 146 Management and development — — — 9,012 Net revenues $ 243,335 $ 61,954 $ 84,974 $ 9,120 Revenue disaggregation by geographic location and revenue type for the three months ended December 31, 2018 was as follows (in thousands): Connecticut Pennsylvania Canada (Mohegan Sun) (Mohegan Sun Pocono) (MGE Niagara Resorts) Other Gaming $ 170,482 $ 51,453 $ — $ — Food and beverage 29,135 5,713 — (42 ) Hotel 21,220 1,758 — (1 ) Retail, entertainment and other 31,842 1,867 — 421 Management and development — — — 5,712 Net revenues $ 252,679 $ 60,791 $ — $ 6,090 Contract and Contract-related Assets As of December 31, 2019 and September 30, 2019, contract assets related to the COSA totaled $95.7 million and $53.2 million , respectively. Contract and Contract-related Liabilities A difference may exist between the timing of cash receipts from patrons and the recognition of revenues, resulting in a contract or contract-related liability. In general, the Company has three types of such liabilities: (1) outstanding gaming chips and slot tickets liability, which represents amounts owed in exchange for outstanding gaming chips and slot tickets held by patrons; (2) loyalty points deferred revenue liability and (3) patron advances and other liability, which primarily represents funds deposited in advance by patrons for gaming and advance payments by patrons for goods and services such as advance ticket sales, deposits on rooms and convention space and gift card purchases. These liabilities are generally expected to be recognized as revenues within one year and are recorded within other current liabilities. The following table summarizes these liabilities (in thousands): December 31, 2019 September 30, 2019 Outstanding gaming chips and slot tickets liability $ 11,350 $ 7,968 Loyalty points deferred revenue liability 39,374 40,968 Patron advances and other liability 20,698 22,312 Total $ 71,422 $ 71,248 As of December 31, 2019 and September 30, 2019, customer contract liabilities related to Mohegan Sun Pocono's revenue sharing agreement with Unibet Interactive Inc. totaled $17.7 million and $18.0 million , respectively, and are primarily recorded within other long-term liabilities. Fair Value of Financial Instruments The Company applies the following fair value hierarchy, which prioritizes the inputs utilized to measure fair value into three levels: • Level 1 - Quoted prices for identical assets or liabilities in active markets; • Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets or valuations based on models where the significant inputs are observable or can be corroborated by observable market data; and • Level 3 - Valuations based on models where the significant inputs are unobservable. The unobservable inputs reflect the Company's estimates or assumptions that market participants would utilize in pricing such assets or liabilities. The Company's assessment of the significance of a particular input requires judgment and may affect the valuation of financial assets and liabilities and their placement within the fair value hierarchy. The carrying amount of cash and cash equivalents, restricted cash and cash equivalents, receivables and trade payables approximates fair value. The estimated fair values of the Company's long-term debt were as follows (in thousands): December 31, 2019 Carrying Value Fair Value Senior secured credit facility - revolving (1) $ 137,000 $ 134,089 Senior secured credit facility - term loan A (1) 253,272 252,122 Senior secured credit facility - term loan B (1) 804,174 789,393 2016 7 7/8% senior unsecured notes (1) 490,821 512,500 Line of credit (1) 75 74 MGE Niagara Resorts credit facility - revolving (1) 30,728 30,728 MGE Niagara Resorts credit facility - term loan (1) 73,936 74,900 MGE Niagara Resorts convertible debenture (2) 30,728 30,728 Mohegan Expo credit facility (3) 28,831 29,657 Guaranteed credit facility (3) 31,264 32,375 Redemption note payable (3) 78,035 78,035 Other (3) 1,154 1,154 Long-term debt $ 1,960,018 $ 1,965,755 ________ (1) Estimated fair values were based on Level 2 inputs (quoted market prices or prices of similar instruments) as of December 31, 2019. (2) Estimated fair value was based on Level 3 inputs (changes in market conditions) from date of issuance (June 11, 2019) to December 31, 2019. (3) Estimated fair values were based on Level 3 inputs (present value of future payments discounted to carrying value) as of December 31, 2019. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS: The following accounting standard was adopted during the three months ended December 31, 2019: ASU 2016-02 In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires, among other things, lessees to recognize a right-of-use (“ROU”) asset and a lease liability for leases with terms in excess of 12 months and the disclosure of information about leasing arrangements. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” and ASU No. 2018-10, “Codification Improvements to Topic 842, Leases”, which clarify various aspects of ASU 2016-02. Effective October 1, 2019, the Company adopted ASU 2016-02 under a modified retrospective transition approach. Accordingly, comparative information as of September 30, 2019 and for the three months ended December 31, 2018 has not been restated and continues to be reported under accounting standards in effect for those periods. The Company elected the package of practical expedients included in ASU 2016-02, which allowed it to: (i) not reassess whether any expired or existing contracts contain leases, (ii) not reassess the lease classification for any expired or existing leases and (iii) not reassess the initial direct costs for existing leases. The Company also made an accounting policy election to not recognize leases with an initial term of 12 months or less on its balance sheet. In addition, the Company elected to not separate lease and non-lease components for all significant classes of underlying assets for which the Company is the lessee. For instances in which the Company is the lessor, and the class of underlying asset represents retail space, the Company accounts for both the lease and non-lease components as a single lease component. In all other instances, non-lease components are accounted for separately in accordance with applicable guidance, most commonly ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. As of October 1, 2019, the adoption of ASU 2016-02 resulted in the recognition of ROU operating lease assets of $359.2 million and related ROU operating lease liabilities of $366.8 million , as well as the derecognition of a previously recognized build-to-suit asset and related liability of $90.3 million . The difference between the ROU operating lease assets and liabilities reflects the reclassification of historical prepaid and deferred rent balances. The adoption of ASU 2016-02 did not impact the Company's retained earnings or the Company’s compliance with its financial covenants under its current debt agreements. The following accounting standards will be adopted in a future reporting period: ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”), which adds, amends and removes certain disclosure requirements related to fair value measurements. ASU 2018-13 requires enhanced disclosures on valuation techniques and inputs that a reporting entity uses to determine its measures of fair value, including judgments and assumptions that the entity makes and the uncertainties in the fair value measurements as of the reporting date. ASU 2018-13 is effective for annual reporting periods beginning after December 15, 2019. Certain amended or eliminated disclosure requirements may be adopted earlier, while certain additional disclosure requirements can be adopted on its effective date. In addition, certain changes required by this new standard require retrospective adoption, while other changes must be adopted prospectively. The Company is currently evaluating the impact ASU 2018-13 will have on its financial statement disclosures. ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which simplifies various aspects related to the accounting for income taxes. This new standard removes certain exceptions to the general principles in ASU 2019-12 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact ASU 2019-12 will have on its financial statements, but does not expect its adoption to have a material impact. |
LEASES
LEASES | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES: The Company determines if a contract is, or contains, a lease at its inception or at the time of any modification. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of the identified asset requires that the lessee has both: (i) the right to obtain substantially all of the economic benefits from the use of the asset and (ii) the right to direct the use of the asset. ROU operating and finance lease assets and liabilities are recognized on the respective lease commencement date based on the present value of future lease payments over the expected lease term. An expected lease term includes any option to extend or terminate the lease if it is reasonably certain that the Company will exercise such option. The Company utilizes the incremental borrowing rate (“IBR”) applicable to the lease as determined at the lease commencement date to calculate the present value of future lease payments. The applicable IBR is determined based on the treasury group to which the leasing entity belongs and that group’s estimated interest rate for collateralized borrowings over a similar term as the future lease payments. Upon adoption of ASU 2016-02, the Company utilized IBRs as of October 1, 2019 to determine the present value of the remaining lease payments for operating leases that commenced prior to that date. Operating lease expense for fixed lease payments is recognized on a straight-line basis over the expected lease term. ROU finance lease assets are recorded within property and equipment, net and are amortized on a straight-line basis over the related lease term. As of December 31, 2019, ROU finance lease assets totaled $31.4 million . Lessee The Company leases real estate and equipment under various operating and finance lease agreements. Lease terms range from approximately one month to 50 years and do not contain any material residual value guarantees or restrictive covenants. Rental payments under these lease agreements are fixed and/or variable based on periodic adjustments for inflation, performance, usage or appraised land values. Variable components of lease payments are not included in the calculation of ROU assets and liabilities. The Company’s lease arrangements contain both lease and non-lease components. For instances in which the Company is a lessee, the Company accounts for both lease and non-lease components as a single lease component for substantially all classes of underlying assets (primarily real estate and equipment). Leases with an expected or initial term of 12 months or less are not recorded on the Company’s balance sheet and the related lease expenses are recognized on a straight-line basis over the expected lease term. Information related to weighted average lease terms and discount rates is as follows: December 31, 2019 Weighted average remaining lease terms (years): Operating leases 23 Finance leases 18 Weighted average discount rates: Operating leases (1) 7.98 % Finance leases 5.01 % _________ (1) The weighted average discount rates for existing operating leases were established upon the adoption of ASU 2016-02 on October 1, 2019. The components of lease expense are as follows (in thousands): For the Three Months Ended December 31, 2019 Operating lease expense $ 9,601 Short-term lease expense 9,956 Variable lease expense 3,609 Finance lease expense: Amortization of ROU assets 607 Interest on lease liabilities 397 Less: sublease income (1) (9,604 ) Total $ 14,566 _________ (1) Represents income earned by the Company from the rental of hotel, convention or retail space at the MGE Niagara Resorts and the Earth Hotel Tower at Mohegan Sun, both of which are leased properties. Supplemental cash flow information related to lease liabilities is as follows (in thousands): For the Three Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Payments on operating lease obligations $ 8,385 Payments for interest on finance lease obligations 397 Payments on finance lease obligations 404 Total $ 9,186 Maturities of ROU operating lease obligations are as follows (in thousands): Operating Leases Finance Leases Fiscal years: 2020 (1) $ 24,415 $ 2,502 2021 30,922 3,131 2022 31,282 3,130 2023 31,047 2,934 2024 31,115 2,568 Thereafter 734,067 33,442 Total future lease payments 882,848 47,707 Less: amounts representing interest (513,106 ) (16,197 ) Plus: residual values — 327 Present value of future lease payments 369,742 31,837 Less: current portion of lease obligations (9,894 ) (1,794 ) Lease obligations, net of current portion $ 359,848 $ 30,043 _________ (1) Represents payment obligations from January 1, 2020 to September 30, 2020. In connection with the acquisition of the MGE Niagara Resorts, the Company committed to enter into a lease agreement with a third-party to lease the Niagara Falls Entertainment Centre following the completion of its construction. Prior to the adoption of ASU 2016-02, the Company was deemed, for accounting purposes only, to be the owner of this construction project, despite not being the legal owner. Accordingly, the Company capitalized $90.3 million as of September 30, 2019 for amounts paid as a build-to-suit asset within property and equipment, net and recorded a corresponding build-to-suit liability. In connection with the adoption of ASU 2016-02, the Company derecognized the build-to-suit asset and liability in their entirety. Lessor The Company leases space at its facilities to third parties. Lease terms for these non-cancelable operating leases range from approximately one month to 17 years . Rental income under these lease agreements are fixed and/or variable based on percentage of tenant sales or periodic adjustments for inflation. Rental income is recorded within hotel and retail, entertainment and other revenues. For instances in which the Company is the lessor, and the class of underlying asset represents retail space, the Company accounts for both the lease and non-lease components, such as common area maintenance and tenant services, as a single lease component. In all other instances, non-lease components are accounted for separately in accordance with applicable guidance, most commonly ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. Lease income consists of the following (in thousands): For the Three Months Ended December 31, 2019 Hotel Retail, Entertainment and Other Fixed rent $ 15,743 $ 3,075 Variable rent — 1,388 Total $ 15,743 $ 4,463 Future fixed rental income that the Company expects to earn under non-cancelable operating leases, exclusive of amounts under contingent escalated rent clauses, are as follows (in thousands): Fiscal years: 2020 (1) $ 7,120 2021 8,211 2022 5,375 2023 4,748 2024 4,180 Thereafter 9,440 Total $ 39,074 _________ (1) Represents future fixed rental income from January 1, 2020 to September 30, 2020. The portions of Mohegan Sun, including the Sky Hotel Tower and the Earth Expo & Convention Center, and Mohegan Sun Pocono that are leased to third parties under operating leases are recorded within property and equipment, net as follows (in thousands): December 31, 2019 Property and equipment, at cost $ 492,612 Less: accumulated depreciation (197,212 ) Property and equipment, net $ 295,400 As of September 30, 2019, information pertaining to the Company’s leases, as accounted for under prior accounting standards, was as follows: Capital Leases Minimum future capital lease payments were as follows (in thousands): Fiscal years: 2020 $ 2,571 2021 2,598 2022 2,598 2023 2,548 2024 2,251 Thereafter 32,832 Total minimum future capital lease payments 45,398 Less: amounts representing interest (16,031 ) Plus: residual values 327 Present value of capital lease obligations 29,694 Less: current portion of capital lease obligations (1,133 ) Capital lease obligations, net of current portion $ 28,561 Operating Leases Minimum future rental income that the Company expected to earn under non-cancelable leases was as follows (in thousands): Fiscal years: 2020 $ 4,808 2021 4,038 2022 2,485 2023 2,092 2024 2,011 Thereafter 5,734 Total $ 21,168 Minimum future rental payments that the Company expected to incur under non-cancelable leases and subleases was as follows (in thousands): Fiscal years: Minimum Future Rental Payments Minimum Future Sublease Income Total 2020 $ 32,504 $ (1,709 ) $ 30,795 2021 30,376 (1,428 ) 28,948 2022 30,651 (1,114 ) 29,537 2023 30,473 (987 ) 29,486 2024 30,602 (1,025 ) 29,577 Thereafter 715,910 (843 ) 715,067 Total $ 870,516 $ (7,106 ) $ 863,410 |
Leases | LEASES: The Company determines if a contract is, or contains, a lease at its inception or at the time of any modification. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control over the use of the identified asset requires that the lessee has both: (i) the right to obtain substantially all of the economic benefits from the use of the asset and (ii) the right to direct the use of the asset. ROU operating and finance lease assets and liabilities are recognized on the respective lease commencement date based on the present value of future lease payments over the expected lease term. An expected lease term includes any option to extend or terminate the lease if it is reasonably certain that the Company will exercise such option. The Company utilizes the incremental borrowing rate (“IBR”) applicable to the lease as determined at the lease commencement date to calculate the present value of future lease payments. The applicable IBR is determined based on the treasury group to which the leasing entity belongs and that group’s estimated interest rate for collateralized borrowings over a similar term as the future lease payments. Upon adoption of ASU 2016-02, the Company utilized IBRs as of October 1, 2019 to determine the present value of the remaining lease payments for operating leases that commenced prior to that date. Operating lease expense for fixed lease payments is recognized on a straight-line basis over the expected lease term. ROU finance lease assets are recorded within property and equipment, net and are amortized on a straight-line basis over the related lease term. As of December 31, 2019, ROU finance lease assets totaled $31.4 million . Lessee The Company leases real estate and equipment under various operating and finance lease agreements. Lease terms range from approximately one month to 50 years and do not contain any material residual value guarantees or restrictive covenants. Rental payments under these lease agreements are fixed and/or variable based on periodic adjustments for inflation, performance, usage or appraised land values. Variable components of lease payments are not included in the calculation of ROU assets and liabilities. The Company’s lease arrangements contain both lease and non-lease components. For instances in which the Company is a lessee, the Company accounts for both lease and non-lease components as a single lease component for substantially all classes of underlying assets (primarily real estate and equipment). Leases with an expected or initial term of 12 months or less are not recorded on the Company’s balance sheet and the related lease expenses are recognized on a straight-line basis over the expected lease term. Information related to weighted average lease terms and discount rates is as follows: December 31, 2019 Weighted average remaining lease terms (years): Operating leases 23 Finance leases 18 Weighted average discount rates: Operating leases (1) 7.98 % Finance leases 5.01 % _________ (1) The weighted average discount rates for existing operating leases were established upon the adoption of ASU 2016-02 on October 1, 2019. The components of lease expense are as follows (in thousands): For the Three Months Ended December 31, 2019 Operating lease expense $ 9,601 Short-term lease expense 9,956 Variable lease expense 3,609 Finance lease expense: Amortization of ROU assets 607 Interest on lease liabilities 397 Less: sublease income (1) (9,604 ) Total $ 14,566 _________ (1) Represents income earned by the Company from the rental of hotel, convention or retail space at the MGE Niagara Resorts and the Earth Hotel Tower at Mohegan Sun, both of which are leased properties. Supplemental cash flow information related to lease liabilities is as follows (in thousands): For the Three Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Payments on operating lease obligations $ 8,385 Payments for interest on finance lease obligations 397 Payments on finance lease obligations 404 Total $ 9,186 Maturities of ROU operating lease obligations are as follows (in thousands): Operating Leases Finance Leases Fiscal years: 2020 (1) $ 24,415 $ 2,502 2021 30,922 3,131 2022 31,282 3,130 2023 31,047 2,934 2024 31,115 2,568 Thereafter 734,067 33,442 Total future lease payments 882,848 47,707 Less: amounts representing interest (513,106 ) (16,197 ) Plus: residual values — 327 Present value of future lease payments 369,742 31,837 Less: current portion of lease obligations (9,894 ) (1,794 ) Lease obligations, net of current portion $ 359,848 $ 30,043 _________ (1) Represents payment obligations from January 1, 2020 to September 30, 2020. In connection with the acquisition of the MGE Niagara Resorts, the Company committed to enter into a lease agreement with a third-party to lease the Niagara Falls Entertainment Centre following the completion of its construction. Prior to the adoption of ASU 2016-02, the Company was deemed, for accounting purposes only, to be the owner of this construction project, despite not being the legal owner. Accordingly, the Company capitalized $90.3 million as of September 30, 2019 for amounts paid as a build-to-suit asset within property and equipment, net and recorded a corresponding build-to-suit liability. In connection with the adoption of ASU 2016-02, the Company derecognized the build-to-suit asset and liability in their entirety. Lessor The Company leases space at its facilities to third parties. Lease terms for these non-cancelable operating leases range from approximately one month to 17 years . Rental income under these lease agreements are fixed and/or variable based on percentage of tenant sales or periodic adjustments for inflation. Rental income is recorded within hotel and retail, entertainment and other revenues. For instances in which the Company is the lessor, and the class of underlying asset represents retail space, the Company accounts for both the lease and non-lease components, such as common area maintenance and tenant services, as a single lease component. In all other instances, non-lease components are accounted for separately in accordance with applicable guidance, most commonly ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. Lease income consists of the following (in thousands): For the Three Months Ended December 31, 2019 Hotel Retail, Entertainment and Other Fixed rent $ 15,743 $ 3,075 Variable rent — 1,388 Total $ 15,743 $ 4,463 Future fixed rental income that the Company expects to earn under non-cancelable operating leases, exclusive of amounts under contingent escalated rent clauses, are as follows (in thousands): Fiscal years: 2020 (1) $ 7,120 2021 8,211 2022 5,375 2023 4,748 2024 4,180 Thereafter 9,440 Total $ 39,074 _________ (1) Represents future fixed rental income from January 1, 2020 to September 30, 2020. The portions of Mohegan Sun, including the Sky Hotel Tower and the Earth Expo & Convention Center, and Mohegan Sun Pocono that are leased to third parties under operating leases are recorded within property and equipment, net as follows (in thousands): December 31, 2019 Property and equipment, at cost $ 492,612 Less: accumulated depreciation (197,212 ) Property and equipment, net $ 295,400 As of September 30, 2019, information pertaining to the Company’s leases, as accounted for under prior accounting standards, was as follows: Capital Leases Minimum future capital lease payments were as follows (in thousands): Fiscal years: 2020 $ 2,571 2021 2,598 2022 2,598 2023 2,548 2024 2,251 Thereafter 32,832 Total minimum future capital lease payments 45,398 Less: amounts representing interest (16,031 ) Plus: residual values 327 Present value of capital lease obligations 29,694 Less: current portion of capital lease obligations (1,133 ) Capital lease obligations, net of current portion $ 28,561 Operating Leases Minimum future rental income that the Company expected to earn under non-cancelable leases was as follows (in thousands): Fiscal years: 2020 $ 4,808 2021 4,038 2022 2,485 2023 2,092 2024 2,011 Thereafter 5,734 Total $ 21,168 Minimum future rental payments that the Company expected to incur under non-cancelable leases and subleases was as follows (in thousands): Fiscal years: Minimum Future Rental Payments Minimum Future Sublease Income Total 2020 $ 32,504 $ (1,709 ) $ 30,795 2021 30,376 (1,428 ) 28,948 2022 30,651 (1,114 ) 29,537 2023 30,473 (987 ) 29,486 2024 30,602 (1,025 ) 29,577 Thereafter 715,910 (843 ) 715,067 Total $ 870,516 $ (7,106 ) $ 863,410 |
MGE NIAGARA RESORTS
MGE NIAGARA RESORTS | 3 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
MGE NIAGARA RESORTS | MGE NIAGARA RESORTS: In September 2018, MGE Niagara was selected by the OLG to be the service provider for the MGE Niagara Resorts. Following its selection, MGE Niagara entered into a Transition and Asset Purchase Agreement with the OLG and the Ontario Gaming Assets Corporation. Pursuant to the terms of this agreement, MGE Niagara agreed to acquire certain assets associated with the MGE Niagara Resorts and to perform certain transition activities in order to facilitate the transition of the operational responsibilities from the previous operator to MGE Niagara. On the Closing Date, MGE Niagara completed the Acquisition, assumed the day-to-day operations of the properties under the terms of the COSA and engaged in a series of transactions related thereto, including: (i) a lease agreement with the OLG to lease the Fallsview Casino Resort and related administrative office space, (ii) a lease agreement with a third-party investor to lease Casino Niagara and related license agreements to operate an adjacent parking lot and the right for patrons to use an adjacent parking garage and (iii) committed to enter into a lease agreement with a third-party to lease the Niagara Falls Entertainment Centre following the completion of its construction, both of which are expected to occur in 2020. As of the Closing Date, the purchase price of the Acquisition was approximately 96 million Canadian dollars (approximately $72 million ), net of cash acquired of approximately 57 million Canadian dollars (approximately $43 million ). During the three months ended December 31, 2019, the Company recorded adjustments to the purchase price of the Acquisition totaling 2.2 million Canadian dollars ( $1.7 million ), net of cash acquired of approximately 518,000 Canadian dollars (approximately $390,000 ). While no additional material adjustments are expected, the purchase price allocation is not final. The below unaudited pro forma financial information was prepared as if the Acquisition, the financing to fund the Acquisition and the lease transactions had occurred on October 1, 2018. Unaudited pro forma financial information does not necessarily represent results that may occur in the future. The following unaudited pro forma financial information includes historical financial results of the MGE Niagara Resorts prior to the Acquisition, adjusted to include the Company's share of revenues earned under the COSA which are recorded on a net basis, along with other adjustments directly attributable to the Acquisition, including interest expense and depreciation (in thousands, unaudited): For the Three Months Ended December 31, 2018 Net revenues $ 405,802 Net income attributable to Mohegan Tribal Gaming Authority $ 8,554 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT: Long-term debt consisted of the following (in thousands): December 31, September 30, Senior Secured Credit Facility - Revolving $ 137,000 $ 102,000 Senior Secured Credit Facility - Term Loan A, net of discount and debt issuance costs of $3,668 and $4,236, respectively 253,272 263,829 Senior Secured Credit Facility - Term Loan B, net of discount and debt issuance costs of $15,975 and $16,925, respectively 804,174 805,394 2016 7 7/8% Senior Unsecured Notes, net of discount and debt issuance costs of $9,179 and $9,565, respectively 490,821 490,435 Line of Credit 75 — MGE Niagara Resorts Credit Facility - Revolving 30,728 — MGE Niagara Resorts Credit Facility - Term Loan, net of debt issuance costs of $963 and $1,002, respectively 73,936 73,564 MGE Niagara Resorts Convertible Debenture 30,728 30,204 Mohegan Expo Credit Facility, net of debt issuance costs of $827 and $925, respectively 28,831 29,357 Guaranteed Credit Facility, net of debt issuance costs of $1,111 and $1,191, respectively 31,264 31,840 Redemption Note Payable, net of discount of $22,072 and $23,905, respectively 78,035 81,329 Other 1,154 1,205 Long-term debt 1,960,018 1,909,157 Less: current portion of long-term debt (74,266 ) (76,909 ) Long-term debt, net of current portion $ 1,885,752 $ 1,832,248 Senior Secured Credit Facilities - Non-cash Transactions On December 31, 2019 and 2018, the bank that administers the Company's debt service payments for its Senior Secured Credit Facilities made required principal payments on behalf of the Company totaling $13.3 million and $28.9 million , respectively, but did not accordingly debit the Company's bank account for these payments . As of December 31, 2019 and 2018, the Company reflected these non-cash transactions as reductions to current portion of long-term debt and corresponding increases to other current liabilities. On the respective following banking days, the bank withdrew the payments from the Company's bank account, resulting in reductions to the Company's cash and cash equivalents and other current liabilities. Debt Covenant Compliance As of December 31, 2019, the Company and MGE Niagara were in compliance with all financial covenants. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING: The Company, either directly or through subsidiaries, operates Mohegan Sun, along with its other Connecticut operations (the “Connecticut Facilities”), Mohegan Sun Pocono, along with its other Pennsylvania operations (the “Pennsylvania Facilities”) and the MGE Niagara Resorts. The Company assumed the day-to-day operations of the MGE Niagara Resorts on June 11, 2019. Certain other properties that are managed or under development by the Company, which were previously included within the Company's corporate functions, are now identified as the management, development and other reportable segment. The Company's chief operating decision maker currently reviews and assesses the performance and operating results and determines the proper allocation of resources to the Connecticut Facilities, the Pennsylvania Facilities, the MGE Niagara Resorts and the properties managed or under development on a separate basis. Accordingly, the Company now has four separate reportable segments: (i) Mohegan Sun, which includes the operations of the Connecticut Facilities, (ii) Mohegan Sun Pocono, which includes the operations of the Pennsylvania Facilities, (iii) the MGE Niagara Resorts and (iv) management, development and other. The Company's corporate functions, along with any inter-segment activities are disclosed separately in the following segment disclosures to reconcile to consolidated results. The following management, development and other and corporate segment disclosures for the three months ended December 31, 2018 have been restated to conform to fiscal 2020 presentation. For the Three Months Ended (in thousands) December 31, 2019 December 31, 2018 Net revenues: Mohegan Sun $ 243,335 $ 252,679 Mohegan Sun Pocono 61,954 60,791 MGE Niagara Resorts 84,974 — Management, development and other 9,012 5,712 Corporate 108 378 Inter-segment (331 ) (60 ) Total $ 399,052 $ 319,500 Income (loss) from operations: Mohegan Sun $ 45,065 $ 44,063 Mohegan Sun Pocono 7,794 7,192 MGE Niagara Resorts (1,333 ) — Management, development and other (918 ) (413 ) Corporate (7,164 ) (7,472 ) Inter-segment (19 ) — Total $ 43,425 $ 43,370 For the Three Months Ended (in thousands) December 31, 2019 December 31, 2018 Capital expenditures incurred: Mohegan Sun $ 4,631 $ 5,123 Mohegan Sun Pocono 999 377 MGE Niagara Resorts 7,851 — Management, development and other 22,868 7,542 Corporate 8 7 Total $ 36,357 $ 13,049 (in thousands) December 31, 2019 September 30, 2019 Total assets: Mohegan Sun $ 1,355,934 $ 1,282,384 Mohegan Sun Pocono 545,220 548,424 MGE Niagara Resorts 575,771 342,821 Management, development and other 358,366 313,458 Corporate 915,650 912,712 Inter-segment (895,417 ) (888,203 ) Total $ 2,855,524 $ 2,511,596 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES: The Company is a defendant in various claims and legal actions resulting from its normal course of business, primarily relating to personal injuries to patrons and damages to patrons' personal assets. The Company estimates litigation claims expense and accrues for such liabilities based upon historical experience. In management's opinion, the aggregate liability, if any, arising from such legal actions will not have a material impact on the Company's financial position, results of operations or cash flows. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT: On January 21, 2020, the Company, through a wholly-owned subsidiary, purchased a 45% interest in Mohegan Hotel Holdings, LLC, the indirect owner of the Earth Hotel Tower, in exchange for $15.8 million , which the Company believes represented the fair market value of the investment. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and with instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In accordance with Rule 10-01, the accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete consolidated financial statements. The accompanying year-end condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by US GAAP. All adjustments, including normal recurring accruals and adjustments, necessary for a fair statement of the Company's operating results for the interim period, have been included. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2019. The preparation of financial statements in conformity with US GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company applies the following fair value hierarchy, which prioritizes the inputs utilized to measure fair value into three levels: • Level 1 - Quoted prices for identical assets or liabilities in active markets; • Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets or valuations based on models where the significant inputs are observable or can be corroborated by observable market data; and • Level 3 - Valuations based on models where the significant inputs are unobservable. The unobservable inputs reflect the Company's estimates or assumptions that market participants would utilize in pricing such assets or liabilities. The Company's assessment of the significance of a particular input requires judgment and may affect the valuation of financial assets and liabilities and their placement within the fair value hierarchy. |
New Accounting Standards | NEW ACCOUNTING STANDARDS: The following accounting standard was adopted during the three months ended December 31, 2019: ASU 2016-02 In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires, among other things, lessees to recognize a right-of-use (“ROU”) asset and a lease liability for leases with terms in excess of 12 months and the disclosure of information about leasing arrangements. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” and ASU No. 2018-10, “Codification Improvements to Topic 842, Leases”, which clarify various aspects of ASU 2016-02. Effective October 1, 2019, the Company adopted ASU 2016-02 under a modified retrospective transition approach. Accordingly, comparative information as of September 30, 2019 and for the three months ended December 31, 2018 has not been restated and continues to be reported under accounting standards in effect for those periods. The Company elected the package of practical expedients included in ASU 2016-02, which allowed it to: (i) not reassess whether any expired or existing contracts contain leases, (ii) not reassess the lease classification for any expired or existing leases and (iii) not reassess the initial direct costs for existing leases. The Company also made an accounting policy election to not recognize leases with an initial term of 12 months or less on its balance sheet. In addition, the Company elected to not separate lease and non-lease components for all significant classes of underlying assets for which the Company is the lessee. For instances in which the Company is the lessor, and the class of underlying asset represents retail space, the Company accounts for both the lease and non-lease components as a single lease component. In all other instances, non-lease components are accounted for separately in accordance with applicable guidance, most commonly ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. As of October 1, 2019, the adoption of ASU 2016-02 resulted in the recognition of ROU operating lease assets of $359.2 million and related ROU operating lease liabilities of $366.8 million , as well as the derecognition of a previously recognized build-to-suit asset and related liability of $90.3 million . The difference between the ROU operating lease assets and liabilities reflects the reclassification of historical prepaid and deferred rent balances. The adoption of ASU 2016-02 did not impact the Company's retained earnings or the Company’s compliance with its financial covenants under its current debt agreements. The following accounting standards will be adopted in a future reporting period: ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”), which adds, amends and removes certain disclosure requirements related to fair value measurements. ASU 2018-13 requires enhanced disclosures on valuation techniques and inputs that a reporting entity uses to determine its measures of fair value, including judgments and assumptions that the entity makes and the uncertainties in the fair value measurements as of the reporting date. ASU 2018-13 is effective for annual reporting periods beginning after December 15, 2019. Certain amended or eliminated disclosure requirements may be adopted earlier, while certain additional disclosure requirements can be adopted on its effective date. In addition, certain changes required by this new standard require retrospective adoption, while other changes must be adopted prospectively. The Company is currently evaluating the impact ASU 2018-13 will have on its financial statement disclosures. ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which simplifies various aspects related to the accounting for income taxes. This new standard removes certain exceptions to the general principles in ASU 2019-12 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact ASU 2019-12 will have on its financial statements, but does not expect its adoption to have a material impact. |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of Revenue | Revenue disaggregation by geographic location and revenue type for the three months ended December 31, 2019 was as follows (in thousands): Connecticut Pennsylvania Canada (Mohegan Sun) (Mohegan Sun Pocono) (MGE Niagara Resorts) Other Gaming $ 160,259 $ 51,978 $ 52,032 $ — Food and beverage 28,533 6,082 15,953 (36 ) Hotel 22,048 1,980 3,563 (2 ) Retail, entertainment and other 32,495 1,914 13,426 146 Management and development — — — 9,012 Net revenues $ 243,335 $ 61,954 $ 84,974 $ 9,120 Revenue disaggregation by geographic location and revenue type for the three months ended December 31, 2018 was as follows (in thousands): Connecticut Pennsylvania Canada (Mohegan Sun) (Mohegan Sun Pocono) (MGE Niagara Resorts) Other Gaming $ 170,482 $ 51,453 $ — $ — Food and beverage 29,135 5,713 — (42 ) Hotel 21,220 1,758 — (1 ) Retail, entertainment and other 31,842 1,867 — 421 Management and development — — — 5,712 Net revenues $ 252,679 $ 60,791 $ — $ 6,090 |
Contract with Customer | The following table summarizes these liabilities (in thousands): December 31, 2019 September 30, 2019 Outstanding gaming chips and slot tickets liability $ 11,350 $ 7,968 Loyalty points deferred revenue liability 39,374 40,968 Patron advances and other liability 20,698 22,312 Total $ 71,422 $ 71,248 |
Estimated fair value of financing facilities and notes | The estimated fair values of the Company's long-term debt were as follows (in thousands): December 31, 2019 Carrying Value Fair Value Senior secured credit facility - revolving (1) $ 137,000 $ 134,089 Senior secured credit facility - term loan A (1) 253,272 252,122 Senior secured credit facility - term loan B (1) 804,174 789,393 2016 7 7/8% senior unsecured notes (1) 490,821 512,500 Line of credit (1) 75 74 MGE Niagara Resorts credit facility - revolving (1) 30,728 30,728 MGE Niagara Resorts credit facility - term loan (1) 73,936 74,900 MGE Niagara Resorts convertible debenture (2) 30,728 30,728 Mohegan Expo credit facility (3) 28,831 29,657 Guaranteed credit facility (3) 31,264 32,375 Redemption note payable (3) 78,035 78,035 Other (3) 1,154 1,154 Long-term debt $ 1,960,018 $ 1,965,755 ________ (1) Estimated fair values were based on Level 2 inputs (quoted market prices or prices of similar instruments) as of December 31, 2019. (2) Estimated fair value was based on Level 3 inputs (changes in market conditions) from date of issuance (June 11, 2019) to December 31, 2019. (3) Estimated fair values were based on Level 3 inputs (present value of future payments discounted to carrying value) as of December 31, 2019. |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease cost | Minimum future rental payments that the Company expected to incur under non-cancelable leases and subleases was as follows (in thousands): Fiscal years: Minimum Future Rental Payments Minimum Future Sublease Income Total 2020 $ 32,504 $ (1,709 ) $ 30,795 2021 30,376 (1,428 ) 28,948 2022 30,651 (1,114 ) 29,537 2023 30,473 (987 ) 29,486 2024 30,602 (1,025 ) 29,577 Thereafter 715,910 (843 ) 715,067 Total $ 870,516 $ (7,106 ) $ 863,410 Information related to weighted average lease terms and discount rates is as follows: December 31, 2019 Weighted average remaining lease terms (years): Operating leases 23 Finance leases 18 Weighted average discount rates: Operating leases (1) 7.98 % Finance leases 5.01 % _________ (1) The weighted average discount rates for existing operating leases were established upon the adoption of ASU 2016-02 on October 1, 2019. The components of lease expense are as follows (in thousands): For the Three Months Ended December 31, 2019 Operating lease expense $ 9,601 Short-term lease expense 9,956 Variable lease expense 3,609 Finance lease expense: Amortization of ROU assets 607 Interest on lease liabilities 397 Less: sublease income (1) (9,604 ) Total $ 14,566 _________ (1) Represents income earned by the Company from the rental of hotel, convention or retail space at the MGE Niagara Resorts and the Earth Hotel Tower at Mohegan Sun, both of which are leased properties. Supplemental cash flow information related to lease liabilities is as follows (in thousands): For the Three Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Payments on operating lease obligations $ 8,385 Payments for interest on finance lease obligations 397 Payments on finance lease obligations 404 Total $ 9,186 |
Operating lease liability | Maturities of ROU operating lease obligations are as follows (in thousands): Operating Leases Finance Leases Fiscal years: 2020 (1) $ 24,415 $ 2,502 2021 30,922 3,131 2022 31,282 3,130 2023 31,047 2,934 2024 31,115 2,568 Thereafter 734,067 33,442 Total future lease payments 882,848 47,707 Less: amounts representing interest (513,106 ) (16,197 ) Plus: residual values — 327 Present value of future lease payments 369,742 31,837 Less: current portion of lease obligations (9,894 ) (1,794 ) Lease obligations, net of current portion $ 359,848 $ 30,043 _________ (1) Represents payment obligations from January 1, 2020 to September 30, 2020. |
Finance lease liability | Maturities of ROU operating lease obligations are as follows (in thousands): Operating Leases Finance Leases Fiscal years: 2020 (1) $ 24,415 $ 2,502 2021 30,922 3,131 2022 31,282 3,130 2023 31,047 2,934 2024 31,115 2,568 Thereafter 734,067 33,442 Total future lease payments 882,848 47,707 Less: amounts representing interest (513,106 ) (16,197 ) Plus: residual values — 327 Present value of future lease payments 369,742 31,837 Less: current portion of lease obligations (9,894 ) (1,794 ) Lease obligations, net of current portion $ 359,848 $ 30,043 _________ (1) Represents payment obligations from January 1, 2020 to September 30, 2020. |
Schedule of rent expense | Lease income consists of the following (in thousands): For the Three Months Ended December 31, 2019 Hotel Retail, Entertainment and Other Fixed rent $ 15,743 $ 3,075 Variable rent — 1,388 Total $ 15,743 $ 4,463 |
Schedule of lease payments to be received | Future fixed rental income that the Company expects to earn under non-cancelable operating leases, exclusive of amounts under contingent escalated rent clauses, are as follows (in thousands): Fiscal years: 2020 (1) $ 7,120 2021 8,211 2022 5,375 2023 4,748 2024 4,180 Thereafter 9,440 Total $ 39,074 _________ (1) Represents future fixed rental income from January 1, 2020 to September 30, 2020. |
Schedule of property and equipment | The portions of Mohegan Sun, including the Sky Hotel Tower and the Earth Expo & Convention Center, and Mohegan Sun Pocono that are leased to third parties under operating leases are recorded within property and equipment, net as follows (in thousands): December 31, 2019 Property and equipment, at cost $ 492,612 Less: accumulated depreciation (197,212 ) Property and equipment, net $ 295,400 |
Schedule of future minimum capital lease payments | Minimum future capital lease payments were as follows (in thousands): Fiscal years: 2020 $ 2,571 2021 2,598 2022 2,598 2023 2,548 2024 2,251 Thereafter 32,832 Total minimum future capital lease payments 45,398 Less: amounts representing interest (16,031 ) Plus: residual values 327 Present value of capital lease obligations 29,694 Less: current portion of capital lease obligations (1,133 ) Capital lease obligations, net of current portion $ 28,561 |
Schedule of future minimum rental payments | Minimum future rental income that the Company expected to earn under non-cancelable leases was as follows (in thousands): Fiscal years: 2020 $ 4,808 2021 4,038 2022 2,485 2023 2,092 2024 2,011 Thereafter 5,734 Total $ 21,168 |
Schedule of future rental payments | Minimum future rental payments that the Company expected to incur under non-cancelable leases and subleases was as follows (in thousands): Fiscal years: Minimum Future Rental Payments Minimum Future Sublease Income Total 2020 $ 32,504 $ (1,709 ) $ 30,795 2021 30,376 (1,428 ) 28,948 2022 30,651 (1,114 ) 29,537 2023 30,473 (987 ) 29,486 2024 30,602 (1,025 ) 29,577 Thereafter 715,910 (843 ) 715,067 Total $ 870,516 $ (7,106 ) $ 863,410 |
MGE NIAGARA RESORTS (Tables)
MGE NIAGARA RESORTS (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Proforma Information | The following unaudited pro forma financial information includes historical financial results of the MGE Niagara Resorts prior to the Acquisition, adjusted to include the Company's share of revenues earned under the COSA which are recorded on a net basis, along with other adjustments directly attributable to the Acquisition, including interest expense and depreciation (in thousands, unaudited): For the Three Months Ended December 31, 2018 Net revenues $ 405,802 Net income attributable to Mohegan Tribal Gaming Authority $ 8,554 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following (in thousands): December 31, September 30, Senior Secured Credit Facility - Revolving $ 137,000 $ 102,000 Senior Secured Credit Facility - Term Loan A, net of discount and debt issuance costs of $3,668 and $4,236, respectively 253,272 263,829 Senior Secured Credit Facility - Term Loan B, net of discount and debt issuance costs of $15,975 and $16,925, respectively 804,174 805,394 2016 7 7/8% Senior Unsecured Notes, net of discount and debt issuance costs of $9,179 and $9,565, respectively 490,821 490,435 Line of Credit 75 — MGE Niagara Resorts Credit Facility - Revolving 30,728 — MGE Niagara Resorts Credit Facility - Term Loan, net of debt issuance costs of $963 and $1,002, respectively 73,936 73,564 MGE Niagara Resorts Convertible Debenture 30,728 30,204 Mohegan Expo Credit Facility, net of debt issuance costs of $827 and $925, respectively 28,831 29,357 Guaranteed Credit Facility, net of debt issuance costs of $1,111 and $1,191, respectively 31,264 31,840 Redemption Note Payable, net of discount of $22,072 and $23,905, respectively 78,035 81,329 Other 1,154 1,205 Long-term debt 1,960,018 1,909,157 Less: current portion of long-term debt (74,266 ) (76,909 ) Long-term debt, net of current portion $ 1,885,752 $ 1,832,248 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Financial information related to segments | The following management, development and other and corporate segment disclosures for the three months ended December 31, 2018 have been restated to conform to fiscal 2020 presentation. For the Three Months Ended (in thousands) December 31, 2019 December 31, 2018 Net revenues: Mohegan Sun $ 243,335 $ 252,679 Mohegan Sun Pocono 61,954 60,791 MGE Niagara Resorts 84,974 — Management, development and other 9,012 5,712 Corporate 108 378 Inter-segment (331 ) (60 ) Total $ 399,052 $ 319,500 Income (loss) from operations: Mohegan Sun $ 45,065 $ 44,063 Mohegan Sun Pocono 7,794 7,192 MGE Niagara Resorts (1,333 ) — Management, development and other (918 ) (413 ) Corporate (7,164 ) (7,472 ) Inter-segment (19 ) — Total $ 43,425 $ 43,370 For the Three Months Ended (in thousands) December 31, 2019 December 31, 2018 Capital expenditures incurred: Mohegan Sun $ 4,631 $ 5,123 Mohegan Sun Pocono 999 377 MGE Niagara Resorts 7,851 — Management, development and other 22,868 7,542 Corporate 8 7 Total $ 36,357 $ 13,049 (in thousands) December 31, 2019 September 30, 2019 Total assets: Mohegan Sun $ 1,355,934 $ 1,282,384 Mohegan Sun Pocono 545,220 548,424 MGE Niagara Resorts 575,771 342,821 Management, development and other 358,366 313,458 Corporate 915,650 912,712 Inter-segment (895,417 ) (888,203 ) Total $ 2,855,524 $ 2,511,596 |
ORGANIZATION AND BASIS OF PRE_4
ORGANIZATION AND BASIS OF PRESENTATION - Organization (Details) | 1 Months Ended | 3 Months Ended |
Sep. 30, 2018seat | Dec. 31, 2019a | |
Entity Information [Line Items] | ||
Number of seats | seat | 5,000 | |
Business acquisition property operations term (in years) | 21 years | |
Mohegan Sun | ||
Entity Information [Line Items] | ||
Size of gaming and entertainment complex (in acres) | 196 | |
Mohegan Sun Pocono | ||
Entity Information [Line Items] | ||
Size of gaming and entertainment complex (in acres) | 400 | |
Salishan-Mohegan and Cowlitz Project | ||
Entity Information [Line Items] | ||
Ownership percentage | 100.00% | |
Inspire Integrated Resort and MGA Korea | ||
Entity Information [Line Items] | ||
Ownership percentage | 100.00% |
ORGANIZATION AND BASIS OF PRE_5
ORGANIZATION AND BASIS OF PRESENTATION - Revenue Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 399,052 | $ 319,500 |
Connecticut | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 243,335 | 252,679 |
Pennsylvania | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 61,954 | 60,791 |
Niagara Falls | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 84,974 | 0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 9,120 | 6,090 |
Gaming | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 264,269 | 221,935 |
Gaming | Connecticut | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 160,259 | 170,482 |
Gaming | Pennsylvania | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 51,978 | 51,453 |
Gaming | Niagara Falls | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 52,032 | 0 |
Gaming | Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 0 | 0 |
Food and beverage | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 50,532 | 34,806 |
Food and beverage | Connecticut | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 28,533 | 29,135 |
Food and beverage | Pennsylvania | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 6,082 | 5,713 |
Food and beverage | Niagara Falls | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 15,953 | 0 |
Food and beverage | Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | (36) | (42) |
Hotel | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 27,589 | 22,977 |
Hotel | Connecticut | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 22,048 | 21,220 |
Hotel | Pennsylvania | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 1,980 | 1,758 |
Hotel | Niagara Falls | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 3,563 | 0 |
Hotel | Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | (2) | (1) |
Retail, entertainment and other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 56,662 | 39,782 |
Retail, entertainment and other | Connecticut | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 32,495 | 31,842 |
Retail, entertainment and other | Pennsylvania | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 1,914 | 1,867 |
Retail, entertainment and other | Niagara Falls | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 13,426 | 0 |
Retail, entertainment and other | Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 146 | 421 |
Management and development | Connecticut | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 0 | 0 |
Management and development | Pennsylvania | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 0 | 0 |
Management and development | Niagara Falls | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 0 | 0 |
Management and development | Other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 9,012 | $ 5,712 |
ORGANIZATION AND BASIS OF PRE_6
ORGANIZATION AND BASIS OF PRESENTATION - Contract with Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Revenue from External Customer [Line Items] | ||
Contract assets | $ 95,700 | $ 53,200 |
Contract related liabilities | 71,422 | 71,248 |
Outstanding gaming chips and slot tickets liability | ||
Revenue from External Customer [Line Items] | ||
Contract related liabilities | 11,350 | 7,968 |
Loyalty points deferred revenue liability | ||
Revenue from External Customer [Line Items] | ||
Contract related liabilities | 39,374 | 40,968 |
Patron advances and other liability | ||
Revenue from External Customer [Line Items] | ||
Contract related liabilities | 20,698 | 22,312 |
Mohegan Sun Pocono | ||
Revenue from External Customer [Line Items] | ||
Contract related liabilities | $ 17,700 | $ 18,000 |
ORGANIZATION AND BASIS OF PRE_7
ORGANIZATION AND BASIS OF PRESENTATION - Schedule of Estimated Fair Value of Financing Facilities and Notes (Details) - Fair Value, Inputs, Level 2 $ in Thousands | Dec. 31, 2019USD ($) |
Carrying Value | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | $ 1,960,018 |
Carrying Value | Revolving Credit Facility | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 137,000 |
Carrying Value | Term Loan A Facility | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 253,272 |
Carrying Value | Term Loan B Facility | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 804,174 |
Carrying Value | 2016 7 7/8% Senior Unsecured Notes | Senior Unsecured Notes | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Note value | 490,821 |
Carrying Value | Line of Credit | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 75 |
Carrying Value | MGE Niagara Credit Facility - Revolving | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 30,728 |
Carrying Value | MGE Niagara Credit Facility - Term Loan | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 73,936 |
Carrying Value | MGE Niagara Convertible Debentures | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 30,728 |
Carrying Value | Mohegan Expo Credit Facility | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 28,831 |
Carrying Value | Guaranteed Credit Facility | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 31,264 |
Carrying Value | Redemption Note Payable | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 78,035 |
Carrying Value | Other | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 1,154 |
Fair Value | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 1,965,755 |
Fair Value | Revolving Credit Facility | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 134,089 |
Fair Value | Term Loan A Facility | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 252,122 |
Fair Value | Term Loan B Facility | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 789,393 |
Fair Value | 2016 7 7/8% Senior Unsecured Notes | Senior Unsecured Notes | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Note value | 512,500 |
Fair Value | Line of Credit | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 74 |
Fair Value | MGE Niagara Credit Facility - Revolving | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 30,728 |
Fair Value | MGE Niagara Credit Facility - Term Loan | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 74,900 |
Fair Value | MGE Niagara Convertible Debentures | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 30,728 |
Fair Value | Mohegan Expo Credit Facility | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 29,657 |
Fair Value | Guaranteed Credit Facility | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 32,375 |
Fair Value | Redemption Note Payable | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | 78,035 |
Fair Value | Other | Line of Credit | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Credit facility value | $ 1,154 |
NEW ACCOUNTING STANDARDS (Detai
NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 | Sep. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liability | $ 369,742 | ||
Right-of-use operating lease assets | 361,036 | $ 0 | |
Build-to-suit liability | $ 0 | $ 90,292 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liability | $ 366,800 | ||
Right-of-use operating lease assets | 359,200 | ||
Build-to-suit asset | 90,300 | ||
Build-to-suit liability | $ 90,300 |
LEASES - Additional Information
LEASES - Additional Information (Details) $ in Millions | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Finance lease, right-of-use asset | $ 31.4 |
Capitalized build-to-suit assets | $ 90.3 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Finance lease, contract term | 1 month |
Operating lease, contract term | 1 month |
Lessee, operating lease, contract term | 1 month |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Finance lease, contract term | 50 years |
Operating lease, contract term | 17 years |
Lessee, operating lease, contract term | 50 years |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Lease, Cost [Abstract] | |
Weighted average remaining lease term, Operating leases | 23 years |
Weighted average remaining lease term, Finance leases | 18 years |
Weighted average discount rate, Operating leases | 7.98% |
Weighted average discount rate, Finance leases | 5.01% |
Operating lease cost | |
Operating leases | $ 9,601 |
Short-term leases | 9,956 |
Variable leases | 3,609 |
Finance lease cost: | |
Amortization of ROU assets | 607 |
Interest on lease liabilities | 397 |
Less: sublease income | (9,604) |
Total lease cost | $ 14,566 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 8,385 | |
Operating cash flows for financing leases | 397 | |
Financing cash flows for financing leases | 404 | $ 0 |
Total | $ 9,186 |
LEASES - Operating and Finance
LEASES - Operating and Finance Lease Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Operating Leases | ||
2020 | $ 24,415 | |
2021 | 30,922 | |
2022 | 31,282 | |
2023 | 31,047 | |
2024 | 31,115 | |
Thereafter | 734,067 | |
Total future lease payments | 882,848 | |
Less: amounts representing interest | (513,106) | |
Plus: residual values | 0 | |
Present value of future lease payments | 369,742 | |
Less: current portion of lease obligations | (9,894) | $ 0 |
Lease obligations, net of current portion | 359,848 | |
Financing Leases | ||
2020 | 2,502 | |
2021 | 3,131 | |
2022 | 3,130 | |
2023 | 2,934 | |
2024 | 2,568 | |
Thereafter | 33,442 | |
Present value of future lease payments | 47,707 | |
Less: amounts representing interest | (16,197) | |
Plus: residual values | 327 | |
Present value of future lease payments | 31,837 | |
Less: current portion of lease obligations | (1,794) | $ (1,133) |
Lease obligations, net of current portion | $ 30,043 |
LEASES - Lease Revenue (Details
LEASES - Lease Revenue (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Hotel | |
Lessor, Lease, Description [Line Items] | |
Fixed rent | $ 15,743 |
Variable rent | 0 |
Net revenues | 15,743 |
Retail, Entertainment and Other | |
Lessor, Lease, Description [Line Items] | |
Fixed rent | 3,075 |
Variable rent | 1,388 |
Net revenues | $ 4,463 |
LEASES - Future Minimum Rentals
LEASES - Future Minimum Rentals (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 7,120 |
2021 | 8,211 |
2022 | 5,375 |
2023 | 4,748 |
2024 | 4,180 |
Thereafter | 9,440 |
Total | $ 39,074 |
LEASES - Cost and Accumulated D
LEASES - Cost and Accumulated Depreciation (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Property and equipment, at cost | $ 492,612 |
Less: accumulated depreciation | (197,212) |
Total | $ 295,400 |
LEASES - Minimum Future Capital
LEASES - Minimum Future Capital Lease Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 2,571 |
2021 | 2,598 |
2022 | 2,598 |
2023 | 2,548 |
2024 | 2,251 |
Thereafter | 32,832 |
Total minimum future capital lease payments | 45,398 |
Less: amounts representing interest | (16,031) |
Plus: residual values | 327 |
Present value of capital lease obligations | 29,694 |
Less: current portion of capital lease obligations | (1,133) |
Capital lease obligations, net of current portion | $ 28,561 |
LEASES - Operating Leases (Deta
LEASES - Operating Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Minimum Future Sublease Income | |
2020 | $ (4,808) |
2021 | (4,038) |
2022 | (2,485) |
2023 | (2,092) |
2024 | (2,011) |
Thereafter | (5,734) |
Total | (21,168) |
Minimum Future Rental Payments | |
2020 | 32,504 |
2021 | 30,376 |
2022 | 30,651 |
2023 | 30,473 |
2024 | 30,602 |
Thereafter | 715,910 |
Total future fixed lease payments | 870,516 |
Total | |
2020 | 30,795 |
2021 | 28,948 |
2022 | 29,537 |
2023 | 29,486 |
2024 | 29,577 |
Thereafter | 715,067 |
Total | 863,410 |
Assets Subleased | |
Minimum Future Sublease Income | |
2020 | (1,709) |
2021 | (1,428) |
2022 | (1,114) |
2023 | (987) |
2024 | (1,025) |
Thereafter | (843) |
Total | $ (7,106) |
MGE NIAGARA RESORTS - Additiona
MGE NIAGARA RESORTS - Additional Information (Details) $ in Thousands, $ in Thousands | Jun. 11, 2019USD ($) | Jun. 11, 2019CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||
Purchase price | $ 1,666 | $ 0 | |||
MG&E Niagra Entertainment | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 72,000 | $ 96,000 | |||
Cash acquired | $ 43,000 | $ 57,000 | |||
Purchase price adjustment | 1,700 | $ 2,200 | |||
Cash acquired adjustment | $ 390 | $ 518 |
MGE NIAGARA RESORTS - Pro Forma
MGE NIAGARA RESORTS - Pro Forma Information (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Business Combinations [Abstract] | |
Net revenues | $ 405,802 |
Net income (loss) attributable to Mohegan Tribal Gaming Authority | $ 8,554 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Debt Schedule [Abstract] | ||
Long-term debt | $ 1,960,018 | $ 1,909,157 |
Less: current portion of long-term debt | (74,266) | (76,909) |
Long-term debt, net of current portion | 1,885,752 | 1,832,248 |
Line of Credit | Senior Secured Credit Facility - Revolving | ||
Debt Schedule [Abstract] | ||
Long-term debt | 137,000 | 102,000 |
Debt issuance costs | 1,111 | 1,191 |
Line of Credit | Senior Secured Credit Facility - Term Loan A | ||
Debt Schedule [Abstract] | ||
Long-term debt | 253,272 | 263,829 |
Debt issuance costs | 3,668 | 4,236 |
Line of Credit | Senior Secured Credit Facility - Term Loan B | ||
Debt Schedule [Abstract] | ||
Long-term debt | 804,174 | 805,394 |
Debt issuance costs | 15,975 | 16,925 |
Line of Credit | 2016 7 7/8% Senior Unsecured Notes | ||
Debt Schedule [Abstract] | ||
Long-term debt | 490,821 | 490,435 |
Line of Credit | Line of Credit | ||
Debt Schedule [Abstract] | ||
Long-term debt | 75 | 0 |
Line of Credit | MGE Niagara Resorts Credit Facility - Revolving | ||
Debt Schedule [Abstract] | ||
Long-term debt | 30,728 | 0 |
Line of Credit | MGE Niagara Credit Facility - Term Loan | ||
Debt Schedule [Abstract] | ||
Long-term debt | 73,936 | 73,564 |
Debt issuance costs | 963 | 1,002 |
Line of Credit | Mohegan Expo Credit Facility | ||
Debt Schedule [Abstract] | ||
Long-term debt | 28,831 | 29,357 |
Debt issuance costs | 827 | 925 |
Line of Credit | Guaranteed Credit Facility | ||
Debt Schedule [Abstract] | ||
Long-term debt | 31,264 | 31,840 |
Convertible Debenture | MGE Niagara Convertible Debentures | ||
Debt Schedule [Abstract] | ||
Long-term debt | 30,728 | 30,204 |
Note payable to banks | Redemption Note Payable | ||
Debt Schedule [Abstract] | ||
Long-term debt | 78,035 | 81,329 |
Debt issuance costs | $ 22,072 | 23,905 |
Senior Unsecured Notes | 2016 7 7/8% Senior Unsecured Notes | ||
Debt Schedule [Abstract] | ||
Note stated interest rate | 7.875% | |
Debt issuance costs | $ 9,179 | 9,565 |
Senior Unsecured Notes | Other | ||
Debt Schedule [Abstract] | ||
Long-term debt | $ 1,154 | $ 1,205 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 4 | ||
Revenues: | |||
Total | $ 399,052 | $ 319,500 | |
Income Statement [Abstract] | |||
Income (loss) from operations | 43,425 | 43,370 | |
Capital [Abstract] | |||
Capital expenditures incurred | 36,357 | 13,049 | |
ASSETS | |||
Total assets | 2,855,524 | $ 2,511,596 | |
Operating segments | Mohegan Sun | |||
Revenues: | |||
Net revenues: | 243,335 | 252,679 | |
Income Statement [Abstract] | |||
Income (loss) from operations | 45,065 | 44,063 | |
Capital [Abstract] | |||
Capital expenditures incurred | 4,631 | 5,123 | |
ASSETS | |||
Total assets | 1,355,934 | 1,282,384 | |
Operating segments | Mohegan Sun Pocono | |||
Revenues: | |||
Net revenues: | 61,954 | 60,791 | |
Income Statement [Abstract] | |||
Income (loss) from operations | 7,794 | 7,192 | |
Capital [Abstract] | |||
Capital expenditures incurred | 999 | 377 | |
ASSETS | |||
Total assets | 545,220 | 548,424 | |
Operating segments | MGE Niagara Resorts | |||
Revenues: | |||
Net revenues: | 84,974 | 0 | |
Income Statement [Abstract] | |||
Income (loss) from operations | (1,333) | 0 | |
Capital [Abstract] | |||
Capital expenditures incurred | 7,851 | 0 | |
ASSETS | |||
Total assets | 575,771 | 342,821 | |
Operating segments | Management, development and other | |||
Revenues: | |||
Net revenues: | 9,012 | 5,712 | |
Income Statement [Abstract] | |||
Income (loss) from operations | (918) | (413) | |
Capital [Abstract] | |||
Capital expenditures incurred | 22,868 | 7,542 | |
ASSETS | |||
Total assets | 358,366 | 313,458 | |
Corporate | |||
Revenues: | |||
Net revenues: | 108 | 378 | |
Income Statement [Abstract] | |||
Income (loss) from operations | (7,164) | (7,472) | |
Capital [Abstract] | |||
Capital expenditures incurred | 8 | 7 | |
ASSETS | |||
Total assets | 915,650 | 912,712 | |
Inter-segment | |||
Revenues: | |||
Net revenues: | (331) | (60) | |
Income Statement [Abstract] | |||
Income (loss) from operations | (19) | $ 0 | |
ASSETS | |||
Total assets | $ (895,417) | $ (888,203) |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Line of credit, principal payment | $ 13.3 | $ 28.9 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event $ in Millions | Jan. 21, 2020USD ($) |
Subsequent Event [Line Items] | |
Consideration transferred | $ 15.8 |
Mohegan Hotel Holdings, LLC | |
Subsequent Event [Line Items] | |
Percentage of voting interest acquired | 45.00% |