Cover
Cover | 9 Months Ended |
Jun. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2021 |
Document Transition Report | false |
Entity File Number | 033-80655 |
Entity Registrant Name | MOHEGAN TRIBAL GAMING AUTHORITY |
Entity Tax Identification Number | 06-1436334 |
Entity Address, Address Line One | One Mohegan Sun Boulevard, |
Entity Address, City or Town | Uncasville, |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06382 |
City Area Code | 860 |
Local Phone Number | 862-8000 |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0001005276 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 158,406 | $ 112,665 |
Restricted cash and cash equivalents | 2,002 | 934 |
Accounts receivable, net of allowance for doubtful accounts of $18,389 and $16,313, respectively | 48,458 | 43,602 |
Inventories | 17,699 | 16,773 |
Due from Ontario Lottery and Gaming Corporation | 3,401 | 2,854 |
Casino Operating and Services Agreement customer contract asset | 25,573 | 24,843 |
Other current assets | 50,586 | 46,362 |
Total current assets | 306,125 | 248,033 |
Restricted cash and cash equivalents | 15,204 | 28,470 |
Property and equipment, net | 1,554,248 | 1,498,047 |
Right-of-use operating lease assets | 450,022 | 408,434 |
Other intangible assets, net | 328,772 | 327,841 |
Casino Operating and Services Agreement customer contract asset, net of current portion | 73,033 | 104,405 |
Notes receivable | 2,514 | 2,514 |
Other assets, net | 100,360 | 89,444 |
Total assets | 2,830,278 | 2,707,188 |
Current liabilities: | ||
Current portion of long-term debt | 58,422 | 75,355 |
Current portion of finance lease obligations | 5,283 | 2,802 |
Current portion of right-of-use operating lease obligations | 12,312 | 19,939 |
Trade payables | 26,243 | 22,469 |
Accrued payroll | 38,944 | 32,705 |
Construction payables | 47,588 | 40,932 |
Accrued interest payable | 49,806 | 26,349 |
Due to Ontario Lottery and Gaming Corporation | 22,112 | 25,405 |
Other current liabilities | 195,031 | 157,910 |
Total current liabilities | 455,741 | 403,866 |
Long-term debt, net of current portion | 1,884,520 | 1,894,655 |
Finance lease obligations, net of current portion | 108,989 | 28,209 |
Right-of-use operating lease obligations, net of current portion | 456,623 | 411,698 |
Due to Ontario Lottery and Gaming Corporation | 3,993 | 0 |
Accrued payroll | 3,529 | 3,978 |
Other long-term liabilities | 35,218 | 32,771 |
Total liabilities | 2,948,613 | 2,775,177 |
Commitments and Contingencies | ||
Capital: | ||
Retained deficit | (129,541) | (75,692) |
Accumulated other comprehensive income | 9,507 | 223 |
Total capital attributable to Mohegan Tribal Gaming Authority | (120,034) | (75,469) |
Non-controlling interests | 1,699 | 7,480 |
Total capital | (118,335) | (67,989) |
Total liabilities and capital | $ 2,830,278 | $ 2,707,188 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 18,389 | $ 16,313 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||
Net revenues | $ 328,189 | $ 107,199 | $ 837,598 | $ 820,952 |
Operating costs and expenses: | ||||
Advertising, general and administrative, including related party transactions of $6,327, $4,517, $22,604 and $23,129, respectively | 55,661 | 35,672 | 154,165 | 172,768 |
Corporate, including related party transactions of $1,702, $1,679, $4,966 and $6,060, respectively | 11,238 | 7,700 | 35,230 | 31,959 |
Depreciation and amortization | 27,140 | 26,477 | 79,502 | 82,847 |
Impairment of Mohegan Sun Pocono's intangible assets | 0 | 0 | 0 | 126,596 |
Other, net | 11,037 | 2,656 | 28,843 | 9,000 |
Total operating costs and expenses | 264,148 | 127,736 | 718,091 | 904,319 |
Income (loss) from operations | 64,041 | (20,537) | 119,507 | (83,367) |
Other income (expense): | ||||
Interest income | 125 | 270 | 129 | 1,549 |
Interest expense, net of capitalized interest | (43,929) | (32,478) | (128,256) | (98,830) |
Loss on modification and early extinguishment of debt | (20) | 0 | (23,978) | 0 |
Other, net | 2,373 | 120 | 5,665 | (2,904) |
Total other expense | (41,451) | (32,088) | (146,440) | (100,185) |
Income (loss) before income tax | 22,590 | (52,625) | (26,933) | (183,552) |
Income tax benefit | 3,312 | 2,696 | 10,101 | 3,016 |
Net income (loss) | 25,902 | (49,929) | (16,832) | (180,536) |
Income attributable to non-controlling interests | (535) | (116) | (411) | (209) |
Net income (loss) attributable to Mohegan Tribal Gaming Authority | 25,367 | (50,045) | (17,243) | (180,745) |
Comprehensive income (loss): | ||||
Foreign currency translation adjustment | 216 | 6,088 | 10,660 | (1,076) |
Other comprehensive income (loss) | 216 | 6,088 | 10,660 | (1,076) |
Other comprehensive income attributable to non-controlling interests | 0 | (229) | (1,376) | (21) |
Other comprehensive income (loss) attributable to Mohegan Tribal Gaming Authority | 216 | 5,859 | 9,284 | (1,097) |
Comprehensive income (loss) attributable to Mohegan Tribal Gaming Authority | 25,583 | (44,186) | (7,959) | (181,842) |
Gaming | ||||
Revenues: | ||||
Net revenues | 241,289 | 89,379 | 623,674 | 569,642 |
Operating costs and expenses: | ||||
Operating costs and expenses | 122,326 | 41,834 | 329,392 | 330,200 |
Food and beverage | ||||
Revenues: | ||||
Net revenues | 20,826 | 3,009 | 45,209 | 91,098 |
Operating costs and expenses: | ||||
Operating costs and expenses | 17,544 | 5,075 | 40,640 | 79,160 |
Hotel | ||||
Revenues: | ||||
Net revenues | 22,188 | 2,589 | 55,882 | 50,293 |
Operating costs and expenses: | ||||
Operating costs and expenses | 8,926 | 4,296 | 25,907 | 26,611 |
Retail, entertainment and other | ||||
Revenues: | ||||
Net revenues | 43,886 | 12,222 | 112,833 | 109,919 |
Operating costs and expenses: | ||||
Operating costs and expenses | $ 10,276 | $ 4,026 | $ 24,412 | $ 45,178 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Advertising, general and administrative | $ 55,661 | $ 35,672 | $ 154,165 | $ 172,768 |
Corporate | 11,238 | 7,700 | 35,230 | 31,959 |
Gaming | ||||
Operating costs and expenses | 122,326 | 41,834 | 329,392 | 330,200 |
Hotel | ||||
Operating costs and expenses | 8,926 | 4,296 | 25,907 | 26,611 |
Affiliates | ||||
Advertising, general and administrative | 6,327 | 4,517 | 22,604 | 23,129 |
Corporate | 1,702 | 1,679 | 4,966 | 6,060 |
Affiliates | Gaming | ||||
Operating costs and expenses | (345) | 755 | 1,262 | 2,265 |
Affiliates | Hotel | ||||
Operating costs and expenses | $ 2,161 | $ 2,161 | $ 6,483 | $ 6,483 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statements of Changes in Capital | ||||
Total capital at beginning of period | $ (132,108) | $ (24,751) | $ (67,989) | $ 137,433 |
Net income (loss) | 25,902 | (49,929) | (16,832) | (180,536) |
Foreign currency translation adjustment | 216 | 6,088 | 10,660 | (1,076) |
Contribution from Mohegan Tribe | 2,814 | 2,814 | ||
Distributions to Mohegan Tribe | (15,000) | (8,333) | (39,000) | (32,333) |
Distributions to Salishan Company, LLC related to the Cowlitz Project | (159) | (248) | (420) | (661) |
Other | (7,568) | |||
Total capital at end of period | (118,335) | (77,173) | (118,335) | (77,173) |
Retained Earnings (Deficit) | ||||
Statements of Changes in Capital | ||||
Total capital at beginning of period | (142,563) | (17,989) | (75,692) | 137,124 |
Net income (loss) | 25,367 | (50,045) | (17,243) | (180,745) |
Distributions to Mohegan Tribe | (12,186) | (8,333) | (36,186) | (32,333) |
Distributions to Salishan Company, LLC related to the Cowlitz Project | (159) | (248) | (420) | (661) |
Total capital at end of period | (129,541) | (76,615) | (129,541) | (76,615) |
Additional Paid-in Capital | ||||
Statements of Changes in Capital | ||||
Total capital at beginning of period | 0 | 0 | 0 | 0 |
Contribution from Mohegan Tribe | 2,814 | 2,814 | ||
Distributions to Mohegan Tribe | (2,814) | (2,814) | ||
Total capital at end of period | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) | ||||
Statements of Changes in Capital | ||||
Total capital at beginning of period | 9,291 | (13,589) | 223 | (6,633) |
Foreign currency translation adjustment | 216 | 5,859 | 9,284 | (1,097) |
Total capital at end of period | 9,507 | (7,730) | 9,507 | (7,730) |
Total Capital Attributable to Mohegan Tribal Gaming Authority | ||||
Statements of Changes in Capital | ||||
Total capital at beginning of period | (133,272) | (31,578) | (75,469) | 130,491 |
Net income (loss) | 25,367 | (50,045) | (17,243) | (180,745) |
Foreign currency translation adjustment | 216 | 5,859 | 9,284 | (1,097) |
Contribution from Mohegan Tribe | 2,814 | 2,814 | ||
Distributions to Mohegan Tribe | (15,000) | (8,333) | (39,000) | (32,333) |
Distributions to Salishan Company, LLC related to the Cowlitz Project | (159) | (248) | (420) | (661) |
Total capital at end of period | (120,034) | (84,345) | (120,034) | (84,345) |
Non-controlling Interests | ||||
Statements of Changes in Capital | ||||
Total capital at beginning of period | 1,164 | 6,827 | 7,480 | 6,942 |
Net income (loss) | 535 | 116 | 411 | 209 |
Foreign currency translation adjustment | 229 | 1,376 | 21 | |
Other | (7,568) | |||
Total capital at end of period | $ 1,699 | $ 7,172 | $ 1,699 | $ 7,172 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows provided by (used in) operating activities: | ||
Net loss | $ (16,832) | $ (180,536) |
Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities: | ||
Depreciation and amortization | 79,502 | 82,847 |
Non-cash operating lease expense | 9,072 | 9,364 |
Loss on modification and early extinguishment of debt | 23,725 | 0 |
Accretion of discounts | 974 | 857 |
Amortization of discounts and debt issuance costs | 15,309 | 13,977 |
Provision for losses on receivables | 3,493 | 2,676 |
Impairment of Mohegan Sun Pocono's intangible assets | 0 | 126,596 |
Deferred income taxes | (10,382) | (3,262) |
Other, net | (6,612) | 2,255 |
Changes in operating assets and liabilities, net of effect of the MGE Niagara Resorts acquisition: | ||
Accounts receivable | (7,823) | 1,237 |
Inventories | (689) | 714 |
Due from Ontario Lottery and Gaming Corporation | (194) | 5,482 |
Casino Operating and Services Agreement customer contract asset | 6,185 | (78,210) |
Other assets | (328) | 398 |
Trade payables | 2,565 | 6,672 |
Accrued interest | 23,421 | (5,402) |
Due to Ontario Lottery and Gaming Corporation | 6,101 | 3,598 |
Operating lease liabilities | 13,016 | (162) |
Other liabilities | 4,617 | (22,713) |
Net cash flows provided by (used in) operating activities | 145,120 | (33,612) |
Cash flows used in investing activities: | ||
Purchases of property and equipment | (33,358) | (104,384) |
Acquisition of the MGE Niagara Resorts, net of cash acquired | 0 | (1,666) |
Other, net | 1,206 | (1,171) |
Net cash flows used in investing activities | (32,152) | (117,971) |
Cash flows provided by (used in) financing activities: | ||
Proceeds from Main Street term loan facility, net of discounts | 48,108 | 0 |
Repayment of Main Street term loan facility | (50,000) | 0 |
Proceeds from issuance of senior secured notes | 1,175,000 | 0 |
Repayment of Mohegan Tribe subordinated loan | (5,000) | 0 |
Other borrowings | 694 | 2,845 |
Other repayments | (21,303) | (14,230) |
Payments on finance lease obligations | (808) | (1,034) |
Contribution from Mohegan Tribe | 2,814 | 0 |
Payments of financing fees | (24,082) | (34) |
Other, net | (1,000) | (1,527) |
Net cash flows provided by (used in) financing activities | (81,050) | 84,579 |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 31,918 | (67,004) |
Effect of exchange rate on cash, cash equivalents, restricted cash and restricted cash equivalents | 1,625 | (1,444) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 142,069 | 280,729 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 175,612 | 212,281 |
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents to the condensed consolidated balance sheets: | ||
Cash and cash equivalents | 158,406 | 149,435 |
Restricted cash and cash equivalents, current | 2,002 | 1,698 |
Restricted cash and cash equivalents, non-current | 15,204 | 61,148 |
Cash, cash equivalents, restricted cash and restricted cash equivalents | 175,612 | 212,281 |
Supplemental disclosures: | ||
Cash paid for interest | 86,810 | 95,211 |
Non-cash transactions: | ||
Right-of-use operating lease assets | 24,787 | 360,933 |
Right-of-use operating lease obligations | 24,154 | 361,078 |
Finance lease assets and obligations | 79,102 | 2,511 |
Construction payables | 44,735 | 46,236 |
MGE Niagara Resorts - derecognition of build-to-suit asset and liability | 0 | 90,675 |
MGE Niagara Credit Facility | ||
Cash flows provided by (used in) financing activities: | ||
Credit facility borrowings | 0 | 77,537 |
Credit facility repayments | 0 | (51,110) |
Credit Facility | New Senior Secured Credit Facility | ||
Cash flows provided by (used in) financing activities: | ||
Credit facility borrowings | 540,866 | 0 |
Credit facility repayments | (450,866) | 0 |
Non-cash transactions: | ||
Reductions | 45,000 | 0 |
Credit Facility | Prior Senior Secured Credit Facility | ||
Cash flows provided by (used in) financing activities: | ||
Credit facility borrowings | 156,287 | 807,525 |
Credit facility repayments | (353,287) | (662,525) |
Non-cash transactions: | ||
Reductions | 0 | 10,514 |
Credit Facility | Senior Secured Credit Facility, Term Loan A and B | ||
Cash flows provided by (used in) financing activities: | ||
Credit facility repayments | (1,056,061) | (37,104) |
Term Loan | MGE Niagara Credit Facility | ||
Cash flows provided by (used in) financing activities: | ||
Credit facility repayments | (2,992) | (2,770) |
Mohegan Hotel Holding, LLC | ||
Cash flows used in investing activities: | ||
Investment in Mohegan Hotel Holding, LLC | 0 | (10,750) |
Mohegan Tribe | ||
Cash flows provided by (used in) financing activities: | ||
Distributions to Mohegan Tribe | (39,000) | (32,333) |
Salishan Company, LLC | ||
Cash flows provided by (used in) financing activities: | ||
Distributions to Mohegan Tribe | $ (420) | $ (661) |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Jun. 30, 2021 | |
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. This ownership, operation and development includes the following: (i) ownership and operation of Mohegan Sun, a gaming and entertainment complex located on an approximately 196-acre site in Uncasville, Connecticut, (ii) ownership and operation of Mohegan Sun Pocono, a gaming and entertainment facility located on an approximately 400-acre site in Plains Township, Pennsylvania, (iii) operation of the Niagara Fallsview Casino Resort, Casino Niagara and the 5,000-seat Niagara Falls Entertainment Centre under a Casino Operating and Services Agreement (the “Casino Operating and Services Agreement”), all in Niagara Falls, Canada (collectively, the “MGE Niagara Resorts”), (iv) development and management of ilani Casino Resort in Clark County, Washington, and development rights to any future development at ilani Casino Resort, (v) management of Resorts Casino Hotel in Atlantic City, New Jersey and ownership of 10% of the casino’s holding company and its subsidiaries, including those conducting or licensing online gaming and retail sports wagering in New Jersey, (vi) operation of the Mohegan Sun Casino at Virgin Hotels Las Vegas (“Mohegan Sun Las Vegas”) in Las Vegas, Nevada, (vii) development and construction of an integrated resort and casino project to be located adjacent to the Incheon International Airport in South Korea and (viii) development and construction of an integrated resort and casino project to be located near Athens, Greece. Impact of the COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic and the United States federal government declared it a national emergency. The spread of COVID-19 has affected most segments of the global economy, including the Company’s operations. In March 2020, the Company temporarily suspended operations at its North American owned, operated and managed properties to ensure the health and safety of its employees, guests and the surrounding communities in which the Company operates, consistent with directives from various government bodies. Following these closures, the Company reopened its properties as follows: (i) ilani Casino Resort on May 28, 2020, (ii) Mohegan Sun on June 1, 2020, (iii) Mohegan Sun Pocono on June 22, 2020, (iv) Resorts Casino Hotel on July 2, 2020 and (v) the MGE Niagara Resorts on July 23, 2021. Mohegan Sun Pocono was again temporarily closed from December 12, 2020 through January 3, 2021 due to a resurgence of COVID-19 at that time. In addition, Mohegan Sun Las Vegas opened to the public on March 25, 2021. The impact of COVID-19 on the Company's operations has been significant, though the full extent of its impact will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the duration of COVID-19 or the extent of any resurgence of COVID-19, the manner in which the Company’s guests, suppliers and other third parties respond to COVID-19, including the perception of safety and health measures taken by the Company, new information which may emerge concerning the severity of COVID-19 and the actions to contain or treat it, as well as general economic conditions and consumer confidence. Accordingly, the Company cannot reasonably estimate the extent to which COVID-19 will further impact its future financial condition, results of operations and cash flows. The Company could experience other potential adverse impacts as a result of COVID-19, including, but not limited to, charges from further adjustments to the carrying value of its intangible assets, as well as other long-lived asset impairment charges. Actual results may differ materially from the Company’s current estimates as the scope of COVID-19 evolves, depending largely, but not exclusively, on the duration and extent of the Company’s business disruptions. In accordance with Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the accompanying condensed consolidated financial statements are issued. As further discussed within Note 3, on January 26, 2021, the Company (i) entered into a new credit agreement which, among other things, provided for an approximately $262.9 million senior secured revolving credit facility, removed the financial covenants (other than a minimum liquidity covenant) applicable for the fiscal quarter ended December 31, 2020, modified the financial covenants applicable for the fiscal quarters ending March 31, 2021 and thereafter and extended the maturity date of the new senior secured revolving credit facility to April 14, 2023 and (ii) issued approximately $1.2 billion of new senior secured notes due February 1, 2026. The proceeds from these transactions were used to refinance certain existing indebtedness of the Company (refer to Note 3). Based on the aforementioned and the Company’s existing resources, there are no current indicators of substantial doubt as previously disclosed in the Company's Annual Report filed on Form 10-K for the fiscal year ended September 30, 2020, and the Company expects to have sufficient resources to meet its existing obligations for the next twelve months and to remain in compliance with its financial covenants. 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 Company’s results for the three months and nine months ended June 30, 2021 are not indicative of operating results expected for the entire fiscal year, particularly given the impact of COVID-19 as discussed above. 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, 2020. 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. Mohegan Sun Las Vegas The Company owns 100% of MGNV, LLC (“MGNV”), which was formed to operate Mohegan Sun Las Vegas. In July 2019, MGNV entered into a casino lease agreement with JC Hospitality, LLC, which developed the former Hard Rock Hotel and Casino in Las Vegas, Nevada, into an integrated resort under the Virgin Hotels brand, which includes Mohegan Sun Las Vegas. Pursuant to the lease agreement, MGNV leases and operates the more than 60,000-square-foot gaming facility at the integrated resort. On March 25, 2021, Mohegan Sun Las Vegas opened to the public. During the initial term of this 20-year lease agreement, the Company is required to make annual minimum rent payments of $9.0 million, subject to escalators which could result in annual minimum rent payments of up to $15.0 million, plus consumer price index inflators and additional common area maintenance fees. Annual minimum rent payments commence upon the first anniversary of the Lease Commencement Date, as defined under the lease agreement, and continue until the end of the lease term, which concludes in 2041, subject to additional extensions at MGNV's option. This lease is classified as a finance lease. Accordingly, the Company recorded a related finance lease asset and liability. 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 primarily focused within Connecticut and Pennsylvania. The Company also currently operates and 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 was as follows (in thousands): For the Three Months Ended June 30, 2021 Connecticut Pennsylvania Nevada Canada (Mohegan Sun) (Mohegan Sun Pocono) (Mohegan Sun (MGE Niagara Resorts) (1) Other Gaming $ 163,938 $ 57,134 $ 6,934 $ 13,283 $ — Food and beverage 16,770 2,940 1,133 — (17) Hotel 20,758 1,430 — — — Retail, entertainment and other 18,595 1,427 295 1,097 179 Management and development — — — — 21,782 Net revenues $ 220,061 $ 62,931 $ 8,362 $ 14,380 $ 21,944 ________ (1) Gaming revenues represent revenues earned under the Casino Operating and Services Agreement. For the Three Months Ended June 30, 2020 Connecticut Pennsylvania Nevada Canada (Mohegan Sun) (Mohegan Sun Pocono) (Mohegan Sun Las Vegas) (1) (MGE Niagara Resorts) (2) Other Gaming $ 67,966 $ 10,112 $ — $ 11,301 $ — Food and beverage 2,779 231 — — (1) Hotel 2,568 21 — — — Retail, entertainment and other 4,926 148 — 45 211 Management and development — — — — 6,546 Net revenues $ 78,239 $ 10,512 $ — $ 11,346 $ 6,756 ________ (1) Mohegan Sun Las Vegas did not open to the public until March 25, 2021. (2) Gaming revenues represent revenues earned under the Casino Operating and Services Agreement. For the Nine Months Ended June 30, 2021 Connecticut Pennsylvania Nevada Canada (Mohegan Sun) (Mohegan Sun Pocono) (Mohegan Sun Las Vegas) (1) (MGE Niagara Resorts) (2) Other Gaming $ 434,928 $ 141,795 $ 8,449 $ 38,502 $ — Food and beverage 39,022 4,913 1,310 — (36) Hotel 52,566 3,327 — — (11) Retail, entertainment and other 48,458 3,357 318 2,691 2,996 Management and development — — — — 53,691 Net revenues $ 574,974 $ 153,392 $ 10,077 $ 41,193 $ 56,640 ________ (1) Mohegan Sun Las Vegas opened to the public on March 25, 2021. (2) Gaming revenues represent revenues earned under the Casino Operating and Services Agreement. For the Nine Months Ended June 30, 2020 Connecticut Pennsylvania Nevada Canada (Mohegan Sun) (Mohegan Sun Pocono) (Mohegan Sun Las Vegas) (1) (MGE Niagara Resorts) (2) Other Gaming $ 352,946 $ 107,499 $ — $ 109,197 $ — Food and beverage 52,734 10,899 — 27,544 (79) Hotel 40,491 3,485 — 6,319 (2) Retail, entertainment and other 57,689 3,685 — 24,542 519 Management and development — — — — 24,012 Net revenues $ 503,860 $ 125,568 $ — $ 167,602 $ 24,450 ________ (1) Mohegan Sun Las Vegas did not open to the public until March 25, 2021. (2) Gaming revenues represent revenues earned under the Casino Operating and Services Agreement. Amendments to MGE Niagara Casino Operating and Services Agreement MGE Niagara operates the MGE Niagara Resorts under the terms of a 21-year Casino Operating and Services Agreement with the Ontario Lottery and Gaming Corporation. On June 18, 2021 (the “Amendment Date”), the Casino Operating and Services Agreement was amended to provide for, among other things, a three-year replacement of annual Thresholds (as defined in the Casino Operating and Services Agreement), subject to certain conditions, with a fixed revenue share percentage. Annual Thresholds may be reinstated at any time during this three-year period under certain conditions specified in the amended Casino Operating and Services Agreement. The amended Casino Operating and Services Agreement also provides for a change in the payment schedule for fixed and variable lease payments relating to Fallsview Casino Resort, which were originally due during the closure of the MGE Niagara Resorts, to the last twelve months of the lease term. These fixed and variable lease payments totaled $26.9 million and $11.5 million, respectively. As of the Amendment Date, such amounts were recorded within current portion of right-of-use operating lease obligations and due to Ontario Lottery and Gaming Corporation, a current liability. On the Amendment Date, these amounts were discounted to an aggregate present value of $4.0 million, which is now recorded within due to Ontario Lottery and Gaming Corporation, a long-term liability. The discount totaling $34.4 million represents additional non-cash consideration from the Ontario Lottery and Gaming Corporation and, accordingly, is recorded as a contract liability. The contract assets related to the Casino Operating and Services Agreement are reported net of this contract liability. The contract liability will be recognized as revenue over the remaining term of the Casino Operating and Services Agreement, on a straight-line basis, consistent with other components with fixed consideration under the Casino Operating and Services Agreement. Contract and Contract-related Assets As of June 30, 2021 and September 30, 2020, contract assets related to the Casino Operating and Services Agreement totaled $98.6 million and $129.2 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): June 30, 2021 September 30, 2020 Outstanding gaming chips and slot tickets liability $ 8,576 $ 7,623 Loyalty points deferred revenue liability 40,095 35,368 Patron advances and other liability 26,695 17,340 Total $ 75,366 $ 60,331 As of June 30, 2021 and September 30, 2020, customer contract liabilities related to Mohegan Sun Pocono's revenue sharing agreement with Unibet Interactive Inc. totaled $15.9 million and $16.8 million, respectively, and were 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): June 30, 2021 Carrying Value Fair Value New senior secured credit facility - revolving (1) $ 45,000 $ 44,381 2021 8% senior secured notes (1) 1,156,911 1,222,000 2016 7 7/8% senior unsecured notes (1) 493,140 516,875 MGE Niagara credit facility - revolving (1) 28,231 28,231 MGE Niagara credit facility - term loan (1) 71,806 72,594 MGE Niagara convertible debenture (2) 32,264 32,264 Mohegan Expo credit facility (3) 26,211 26,535 Guaranteed credit facility (3) 27,789 28,438 Redemption note payable (3) 57,278 57,278 Other (3) 4,312 4,312 Long-term debt $ 1,942,942 $ 2,032,908 ________ (1) Estimated fair values were based on Level 2 inputs (quoted market prices or prices of similar instruments) as of June 30, 2021. (2) Estimated fair value was based on Level 3 inputs (changes in market conditions) from date of issuance (June 11, 2019) to June 30, 2021. (3) Estimated fair values were based on Level 3 inputs (present value of future payments discounted to carrying value) as of June 30, 2021. New Accounting Standards The following accounting standards were adopted during the nine months ended June 30, 2021: ASU 2016-13 In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurements of Credit Losses on Financial Instruments” (“ASU 2016-13”), which sets forth a current expected credit loss model requiring a company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This model replaced the prior incurred loss model and applies to the measurement of credit losses on financial assets measured at amortized cost, as well as certain off-balance sheet credit exposures. Effective October 1, 2020, the Company adopted ASU 2016-13 and its adoption did not have a material impact on the Company's financial statements. 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 added, amended and removed 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. Effective October 1, 2020, the Company adopted ASU 2018-13 and its adoption did not have a material impact on the Company's financial statement disclosures. The following accounting standards will be adopted in future reporting periods: 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 annual reporting periods 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. ASU 2020-06 In August 2020, the FASB issued ASU 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40)” (“ASU 2020-06”), which simplifies the accounting for convertible instruments by removing major separation models required under current guidance. ASU 2020-06 also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective for annual reporting periods beginning after December 15, 2021, including interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact ASU 2020-06 will have on its financial statements and related disclosures, but does not expect its adoption to have a material impact. |
LEASES
LEASES | 9 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES: Lessee The Company leases real estate and equipment under various operating and finance lease agreements. The leases have terms ranging 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 right-of-use 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 condensed consolidated 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: June 30, 2021 Weighted average remaining lease terms (years): Operating leases 23 Finance leases 19 Weighted average discount rates: Operating leases 7.68 % Finance leases 7.76 % The components of lease expense are as follows (in thousands): For the For the For the For the Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating lease expense $ 11,456 $ 9,046 $ 34,160 $ 28,022 Short-term lease expense 9,248 2,747 23,464 20,297 Variable lease expense 4,666 2,354 12,531 9,161 Finance lease expense: Amortization of right-of-use assets 1,602 593 2,854 1,806 Interest on lease liabilities 2,067 373 2,942 1,161 Less: sublease income (1) (5,410) (69) (13,467) (16,794) Total $ 23,629 $ 15,044 $ 62,484 $ 43,653 ________ (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 For the Nine Months Ended Nine Months Ended June 30, 2021 June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Payments on operating lease obligations $ 12,072 $ 18,820 Payments for interest on finance lease obligations 174 853 Payments on finance lease obligations 808 1,034 Total $ 13,054 $ 20,707 Maturities of right-of-use lease obligations are as follows (in thousands): Operating Leases Finance Leases Fiscal years: 2021 (1) $ 12,614 $ 3,719 2022 39,458 8,144 2023 40,437 12,269 2024 40,240 11,839 2025 40,499 11,439 Thereafter 839,308 172,231 Total future lease payments 1,012,556 219,641 Less: amounts representing interest (543,621) (105,696) Plus: residual values — 327 Present value of future lease payments 468,935 114,272 Less: current portion of lease obligations (12,312) (5,283) Lease obligations, net of current portion $ 456,623 $ 108,989 ________ (1) Represents payment obligations from July 1, 2021 to September 30, 2021. 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 21 years. Rental income under these lease agreements is 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 June 30, 2021 For the Three Months Ended June 30, 2020 Hotel Retail, Hotel Retail, Fixed rent $ 14,635 $ 742 $ 2,444 $ 1,299 Variable rent — 1,634 — (96) Total $ 14,635 $ 2,376 $ 2,444 $ 1,203 For the Nine Months Ended June 30, 2021 For the Nine Months Ended June 30, 2020 Hotel Retail, Hotel Retail, Fixed rent $ 36,137 $ 3,626 $ 29,542 $ 5,964 Variable rent — 3,079 — 3,035 Total $ 36,137 $ 6,705 $ 29,542 $ 8,999 Future fixed rental income that the Company expects to earn under non-cancelable operating leases, exclusive of amounts under contingent escalated rent clauses, is as follows (in thousands): Fiscal years: Operating Leases Fixed Rental Income 2021 (1) $ 1,608 2022 5,293 2023 4,629 2024 4,113 2025 2,876 Thereafter 7,830 Total $ 26,349 ________ (1) Represents future fixed rental income from July 1, 2021 to September 30, 2021. Due to the evolving nature of COVID-19 and the related economic uncertainties, the Company cannot be certain that the contractual future fixed rental income presented above will be realized in its entirety. 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): June 30, 2021 September 30, 2020 Property and equipment, at cost $ 491,527 $ 484,143 Less: accumulated depreciation (216,354) (198,080) Property and equipment, net $ 275,173 $ 286,063 |
LEASES | LEASES: Lessee The Company leases real estate and equipment under various operating and finance lease agreements. The leases have terms ranging 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 right-of-use 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 condensed consolidated 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: June 30, 2021 Weighted average remaining lease terms (years): Operating leases 23 Finance leases 19 Weighted average discount rates: Operating leases 7.68 % Finance leases 7.76 % The components of lease expense are as follows (in thousands): For the For the For the For the Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating lease expense $ 11,456 $ 9,046 $ 34,160 $ 28,022 Short-term lease expense 9,248 2,747 23,464 20,297 Variable lease expense 4,666 2,354 12,531 9,161 Finance lease expense: Amortization of right-of-use assets 1,602 593 2,854 1,806 Interest on lease liabilities 2,067 373 2,942 1,161 Less: sublease income (1) (5,410) (69) (13,467) (16,794) Total $ 23,629 $ 15,044 $ 62,484 $ 43,653 ________ (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 For the Nine Months Ended Nine Months Ended June 30, 2021 June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Payments on operating lease obligations $ 12,072 $ 18,820 Payments for interest on finance lease obligations 174 853 Payments on finance lease obligations 808 1,034 Total $ 13,054 $ 20,707 Maturities of right-of-use lease obligations are as follows (in thousands): Operating Leases Finance Leases Fiscal years: 2021 (1) $ 12,614 $ 3,719 2022 39,458 8,144 2023 40,437 12,269 2024 40,240 11,839 2025 40,499 11,439 Thereafter 839,308 172,231 Total future lease payments 1,012,556 219,641 Less: amounts representing interest (543,621) (105,696) Plus: residual values — 327 Present value of future lease payments 468,935 114,272 Less: current portion of lease obligations (12,312) (5,283) Lease obligations, net of current portion $ 456,623 $ 108,989 ________ (1) Represents payment obligations from July 1, 2021 to September 30, 2021. 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 21 years. Rental income under these lease agreements is 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 June 30, 2021 For the Three Months Ended June 30, 2020 Hotel Retail, Hotel Retail, Fixed rent $ 14,635 $ 742 $ 2,444 $ 1,299 Variable rent — 1,634 — (96) Total $ 14,635 $ 2,376 $ 2,444 $ 1,203 For the Nine Months Ended June 30, 2021 For the Nine Months Ended June 30, 2020 Hotel Retail, Hotel Retail, Fixed rent $ 36,137 $ 3,626 $ 29,542 $ 5,964 Variable rent — 3,079 — 3,035 Total $ 36,137 $ 6,705 $ 29,542 $ 8,999 Future fixed rental income that the Company expects to earn under non-cancelable operating leases, exclusive of amounts under contingent escalated rent clauses, is as follows (in thousands): Fiscal years: Operating Leases Fixed Rental Income 2021 (1) $ 1,608 2022 5,293 2023 4,629 2024 4,113 2025 2,876 Thereafter 7,830 Total $ 26,349 ________ (1) Represents future fixed rental income from July 1, 2021 to September 30, 2021. Due to the evolving nature of COVID-19 and the related economic uncertainties, the Company cannot be certain that the contractual future fixed rental income presented above will be realized in its entirety. 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): June 30, 2021 September 30, 2020 Property and equipment, at cost $ 491,527 $ 484,143 Less: accumulated depreciation (216,354) (198,080) Property and equipment, net $ 275,173 $ 286,063 |
LEASES | LEASES: Lessee The Company leases real estate and equipment under various operating and finance lease agreements. The leases have terms ranging 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 right-of-use 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 condensed consolidated 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: June 30, 2021 Weighted average remaining lease terms (years): Operating leases 23 Finance leases 19 Weighted average discount rates: Operating leases 7.68 % Finance leases 7.76 % The components of lease expense are as follows (in thousands): For the For the For the For the Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating lease expense $ 11,456 $ 9,046 $ 34,160 $ 28,022 Short-term lease expense 9,248 2,747 23,464 20,297 Variable lease expense 4,666 2,354 12,531 9,161 Finance lease expense: Amortization of right-of-use assets 1,602 593 2,854 1,806 Interest on lease liabilities 2,067 373 2,942 1,161 Less: sublease income (1) (5,410) (69) (13,467) (16,794) Total $ 23,629 $ 15,044 $ 62,484 $ 43,653 ________ (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 For the Nine Months Ended Nine Months Ended June 30, 2021 June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Payments on operating lease obligations $ 12,072 $ 18,820 Payments for interest on finance lease obligations 174 853 Payments on finance lease obligations 808 1,034 Total $ 13,054 $ 20,707 Maturities of right-of-use lease obligations are as follows (in thousands): Operating Leases Finance Leases Fiscal years: 2021 (1) $ 12,614 $ 3,719 2022 39,458 8,144 2023 40,437 12,269 2024 40,240 11,839 2025 40,499 11,439 Thereafter 839,308 172,231 Total future lease payments 1,012,556 219,641 Less: amounts representing interest (543,621) (105,696) Plus: residual values — 327 Present value of future lease payments 468,935 114,272 Less: current portion of lease obligations (12,312) (5,283) Lease obligations, net of current portion $ 456,623 $ 108,989 ________ (1) Represents payment obligations from July 1, 2021 to September 30, 2021. 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 21 years. Rental income under these lease agreements is 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 June 30, 2021 For the Three Months Ended June 30, 2020 Hotel Retail, Hotel Retail, Fixed rent $ 14,635 $ 742 $ 2,444 $ 1,299 Variable rent — 1,634 — (96) Total $ 14,635 $ 2,376 $ 2,444 $ 1,203 For the Nine Months Ended June 30, 2021 For the Nine Months Ended June 30, 2020 Hotel Retail, Hotel Retail, Fixed rent $ 36,137 $ 3,626 $ 29,542 $ 5,964 Variable rent — 3,079 — 3,035 Total $ 36,137 $ 6,705 $ 29,542 $ 8,999 Future fixed rental income that the Company expects to earn under non-cancelable operating leases, exclusive of amounts under contingent escalated rent clauses, is as follows (in thousands): Fiscal years: Operating Leases Fixed Rental Income 2021 (1) $ 1,608 2022 5,293 2023 4,629 2024 4,113 2025 2,876 Thereafter 7,830 Total $ 26,349 ________ (1) Represents future fixed rental income from July 1, 2021 to September 30, 2021. Due to the evolving nature of COVID-19 and the related economic uncertainties, the Company cannot be certain that the contractual future fixed rental income presented above will be realized in its entirety. 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): June 30, 2021 September 30, 2020 Property and equipment, at cost $ 491,527 $ 484,143 Less: accumulated depreciation (216,354) (198,080) Property and equipment, net $ 275,173 $ 286,063 |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT: Long-term debt consisted of the following (in thousands): June 30, 2021 September 30, 2020 New Senior Secured Credit Facility - Revolving $ 45,000 $ — Prior Senior Secured Credit Facility - Revolving — 197,000 Prior Senior Secured Credit Facility - Term Loan A, net of discount and debt issuance costs of $4,199 — 227,710 Prior Senior Secured Credit Facility - Term Loan B, net of discount and debt issuance costs of $20,809 — 792,829 2021 8% Senior Secured Notes, net of discount and debt issuance costs of $18,089 1,156,911 — 2016 7 7/8% Senior Unsecured Notes, net of discount and debt issuance costs of $6,860 and $8,179, respectively 493,140 491,821 MGE Niagara Credit Facility - Revolving 28,231 26,187 MGE Niagara Credit Facility - Term Loan, net of debt issuance costs of $788 and $847, respectively 71,806 69,297 MGE Niagara Convertible Debenture 32,264 29,928 Mohegan Expo Credit Facility, net of debt issuance costs of $324 and $658, respectively 26,211 27,750 Guaranteed Credit Facility, net of debt issuance costs of $649 and $877, respectively 27,789 29,529 Mohegan Tribe Subordinated Loan — 5,000 Redemption Note Payable, net of discount of $10,302 and $15,701, respectively 57,278 69,099 Other 4,312 3,860 Long-term debt 1,942,942 1,970,010 Less: current portion of long-term debt (58,422) (75,355) Long-term debt, net of current portion $ 1,884,520 $ 1,894,655 Maturities of long-term debt are as follows (in thousands): Fiscal Years 2021 $ 8,063 2022 58,447 2023 74,793 2024 130,252 2025 500,025 Thereafter 1,208,374 Total $ 1,979,954 Refinancing Transactions On January 26, 2021, the Company completed a series of refinancing transactions, including (i) entering into a new senior secured credit facility, (ii) issuing new senior secured notes, (iii) prepaying its prior Senior Secured Credit Facilities, (iv) prepaying the Main Street Term Loan Facility and (v) repaying the Mohegan Tribe Subordinated Loan. The Company incurred $24.0 million in costs in connection with these refinancing transactions. Previously deferred debt issuance costs and debt discounts totaling $23.7 million, as well as $0.1 million in new transaction costs were expensed and recorded as a loss on modification and early extinguishment of debt. New debt issuance costs totaling $4.5 million were capitalized as an asset and will be amortized over the term of the related debt. The remaining $19.4 million in new debt issuance costs was reflected as debt discount and will be amortized over the term of the related debt. New Senior Secured Credit Facility On January 26, 2021, the Company entered into a credit agreement (the “Credit Agreement”) among the Company, the Mohegan Tribe, Citizens Bank, N.A., as administrative agent, and the other lenders and financial institutions party thereto, providing for a $262.875 million senior secured revolving credit facility (the “New Senior Secured Credit Facility”). The New Senior Secured Credit Facility matures on April 14, 2023. The initial draw under the New Senior Secured Credit Facility, together with proceeds from the 2021 Senior Secured Notes (defined below), was used to (i) prepay all amounts outstanding under the prior Senior Secured Credit Facilities, (ii) prepay all amounts outstanding under the Main Street Term Loan Facility, (iii) repay the Mohegan Tribe Subordinated Loan and (iv) pay related fees and expenses. The New Senior Secured Credit Facility will otherwise be available for general corporate purposes. The Credit Agreement contains certain customary covenants applicable to the Company and its restricted subsidiaries, including covenants governing: incurrence of indebtedness, incurrence of liens, payment of dividends and other distributions, investments, asset sales, affiliate transactions and mergers or consolidations. Additionally, the Credit Agreement includes financial maintenance covenants pertaining to total leverage, secured leverage and fixed charge coverage, as well as a minimum liquidity covenant. The Credit Agreement also contains customary events of default relating to, among other things, failure to make payments, breach of covenants and breach of representations. Borrowings under the New Senior Secured Credit Facility bear interest as follows: (i) for base rate loans, a base rate equal to the highest of (x) the prime rate, (y) the federal funds rate plus 50 basis points and (z) the one-month LIBOR rate plus 100 basis points (the highest of (x), (y) and (z), the “base rate”), plus a leverage-based margin of 100 to 275 basis points; and (ii) for Eurodollar rate loans, the applicable LIBOR rate (subject to a 0.75% LIBOR floor) plus a leverage-based margin of 200 to 375 basis points. The Company is also required to pay a leverage-based undrawn commitment fee on the New Senior Secured Credit Facility of between 37.5 and 50 basis points. Interest on Eurodollar rate loans is payable in arrears at the end of each applicable interest period, but not less frequently than quarterly. Interest on base rate advances is payable quarterly in arrears. The New Senior Secured Credit Facility is fully and unconditionally guaranteed, jointly and severally, by each of Downs Racing, L.P., Backside, L.P., Mill Creek Land, L.P., Northeast Concessions, L.P., Mohegan Commercial Ventures PA, LLC, Mohegan Basketball Club LLC, Mohegan Ventures-Northwest, LLC and Mohegan Golf, LLC (the “Guarantors”; and the Guarantors other than Mohegan Basketball Club LLC, the “Grantors”). The New Senior Secured Credit Facility is secured on a first priority senior secured basis by collateral constituting substantially all of the Company’s and Grantors’ assets. In the future, certain other subsidiaries of the Company may be required to become Guarantors and/or Grantors in accordance with the terms of the Credit Agreement and related loan documents. Senior Secured Credit Facilities - Non-cash Transactions On June 30, 2021 and 2020, the bank that administers the Company's debt service payments for its New Senior Secured Credit Facility and prior Senior Secured Credit Facilities made principal payments on behalf of the Company totaling $45.0 million and $10.5 million, respectively, but did not accordingly debit the Company's bank account for these payments. As of June 30, 2021 and 2020, 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. Line of Credit On January 26, 2021, in connection with the New Senior Secured Credit Facility, the Company entered into a $25.0 million revolving credit facility with Bank of America, N.A. (the “Line of Credit”). The Line of Credit is coterminous with the New Senior Secured Credit Facility. Pursuant to provisions of the New Senior Secured Credit Facility, under certain circumstances, the Line of Credit may be converted into loans under the New Senior Secured Credit Facility. Each advance accrues interest at a base rate plus a spread. The Line of Credit contains negative covenants and financial maintenance covenants that are substantially the same as those contained in the New Senior Secured Credit Facility. Main Street Term Loan Facility On December 1, 2020, the Company entered into a loan agreement (the “Loan Agreement”) among the Company, the Mohegan Tribe and Liberty Bank, as lender, in connection with the Main Street Priority Loan Facility established by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) under Section 13(3) of the Federal Reserve Act. The Loan Agreement provided for a senior secured term loan facility (the “Main Street Term Loan Facility”) in an aggregate principal amount of $50.0 million, subject to approval by the Federal Reserve, which was received on December 15, 2020. On December 15, 2020, the Company borrowed the full $50.0 million in principal amount under the Main Street Term Loan Facility. The proceeds from the Main Street Term Loan Facility were used: (i) to fund transaction costs in connection with the Loan Agreement and (ii) for working capital and general corporate purposes. The Main Street Term Loan Facility accrued interest at a rate equal to the three-month LIBOR plus 3%, payable quarterly in arrears, and was scheduled to mature on December 1, 2025. On January 26, 2021, the Company prepaid all amounts outstanding under, and terminated, the Main Street Term Loan Facility. 2021 8% Senior Secured Notes On January 26, 2021, the Company issued $1.175 billion in aggregate principal amount of second priority senior secured notes due 2026 (the “2021 Senior Secured Notes”) in a private placement. On the same date, the Company, the Guarantors and the Mohegan Tribe entered into an indenture agreement (the “Indenture”) with U.S. Bank National Association, the trustee for the 2021 Senior Secured Notes. The 2021 Senior Secured Notes bear interest at a fixed rate of 8% per annum and mature on the earlier of February 1, 2026 and the Springing Maturity Date (as defined in the Indenture). Interest on the 2021 Senior Secured Notes is payable semi-annually in arrears on February 1 and August 1 of each year, commencing on August 1, 2021. The 2021 Senior Secured Notes are fully and unconditionally guaranteed, jointly and severally, by each of the Guarantors and will be guaranteed by each other restricted subsidiary of the Company that becomes a guarantor in accordance with the terms of the 2021 Senior Secured Notes. The 2021 Senior Secured Notes are secured on a second priority senior secured basis by collateral constituting substantially all of the Company’s and Grantors’ assets. Prior to February 1, 2023, the Company may redeem some or all of the 2021 Senior Secured Notes at a redemption price equal to 100% of the principal amount of the 2021 Senior Secured Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the redemption date, plus the “make-whole” premium described in the Indenture. In addition, the Company may, during the twelve-month period commencing on the issue date of the 2021 Senior Secured Notes and during the twelve-month period subsequent to such initial twelve-month period and prior to February 1, 2023, redeem in each such twelve-month period up to 10% of the initial aggregate principal amount of the 2021 Senior Secured Notes at a redemption price equal to 103% of the principal amount of the 2021 Senior Secured Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the redemption date, provided that if the Company does not redeem 10% of the initial aggregate principal amount of the 2021 Senior Secured Notes during the initial twelve-month period commencing on the issue date of the 2021 Senior Secured Notes, the Company may, in the subsequent twelve-month period prior to February 1, 2023, redeem the 2021 Senior Secured Notes in an amount that does not exceed 10% of the initial aggregate principal amount of the 2021 Senior Secured Notes plus the difference between (i) 10% of the initial aggregate principal amount of the 2021 Senior Secured Notes and (ii) the aggregate principal amount of any 2021 Senior Secured Notes redeemed during such initial twelve-month period. On or after February 1, 2023, the Company may redeem some or all of the 2021 Senior Secured Notes at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to, but not including, the redemption date. The Indenture contains certain customary covenants, including in respect of the Company’s and its restricted subsidiaries’ ability to incur additional debt, pay dividends or distributions, make certain investments, create liens on assets, enter into transactions with affiliates, merge or consolidate with another company or sell assets. The Indenture includes customary events of default, including, but not limited to, failure to make required payments and failure to comply with certain covenants. The proceeds from the 2021 Senior Secured Notes were used as described above. Debt Covenant Compliance As of June 30, 2021, the Company was in compliance with its required financial covenants. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Jun. 30, 2021 | |
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. Certain other properties that are managed or under development by the Company are 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 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. Certain other gaming and entertainment operations (“all other”), which are not individually reportable segments, the Company's corporate functions and inter-segment activities are each disclosed separately in the following segment disclosures to reconcile to consolidated results. For the Three Months Ended For the Nine Months Ended (in thousands) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net revenues: Mohegan Sun $ 220,061 $ 78,239 $ 574,974 $ 503,860 Mohegan Sun Pocono 62,931 10,512 153,392 125,568 MGE Niagara Resorts 14,380 11,346 41,193 167,602 Management, development and other 21,782 6,546 53,691 24,012 All other 8,362 — 10,077 — Corporate 162 210 2,949 438 Inter-segment 511 346 1,322 (528) Total $ 328,189 $ 107,199 $ 837,598 $ 820,952 Income (loss) from operations: Mohegan Sun $ 65,183 $ 1,692 $ 144,195 $ 65,951 Mohegan Sun Pocono 12,319 (8,888) 20,116 (122,635) MGE Niagara Resorts (11,755) (9,778) (35,553) (10,163) Management, development and other 5,711 2,200 12,711 1,871 All other (1,045) — (499) — Corporate (6,374) (5,749) (21,459) (18,360) Inter-segment 2 (14) (4) (31) Total $ 64,041 $ (20,537) $ 119,507 $ (83,367) For the Nine Months Ended (in thousands) June 30, 2021 June 30, 2020 Capital expenditures incurred: Mohegan Sun $ 12,680 $ 9,839 Mohegan Sun Pocono 4,182 3,108 MGE Niagara Resorts 9,654 15,330 Management, development and other 6,974 112,161 All other 89,019 — Corporate 307 483 Total $ 122,816 $ 140,921 (in thousands) June 30, 2021 September 30, 2020 Total assets: Mohegan Sun $ 1,279,799 $ 1,271,435 Mohegan Sun Pocono 406,393 409,630 MGE Niagara Resorts 581,360 581,562 Management, development and other 453,071 423,313 All other 100,704 — Corporate 1,011,071 992,874 Inter-segment (1,002,120) (971,626) Total $ 2,830,278 $ 2,707,188 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2021 | |
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 EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS: Amendments to the MGE Niagara Credit Facilities On July 14, 2021, MGE Niagara entered into an amendment to the terms of its bank credit facilities pursuant to an Amended and Restated Credit Agreement with, among others, Bank of Montreal, as Administrative Agent, and the lenders party thereto (the “MGE Niagara Amended Credit Agreement”). Among other things, the amendments contained in the MGE Niagara Amended Credit Agreement provide for a revolving credit facility in the amount of up to 180.0 million Canadian dollars (the “MGE Niagara Revolving Facility”), a swingline facility in the amount of up to 20.0 million Canadian dollars (the “MGE Niagara Swingline Facility”) and a term loan facility in the amount of 90.0 million Canadian dollars. The MGE Niagara Amended Credit Agreement also reduced the Letter of Credit Sub-Limit under the MGE Niagara Revolving Facility to 45.0 million Canadian dollars from 100.0 million Canadian dollars. Availability under the MGE Niagara Revolving Facility and the MGE Niagara Swingline Facility will be determined based on Province of Ontario-approved gaming capacity levels as set forth in the MGE Niagara Amended Credit Agreement. In addition, the Applicable Margin and Undrawn Fee (each as defined in the MGE Niagara Amended Credit Agreement) were adjusted to provide for an additional pricing level, commencing from the closing date of the MGE Niagara Amended Credit Agreement until the end of the Initial Retesting Quarter (as defined in the MGE Niagara Amended Credit Agreement), which Initial Retesting Quarter commences with the first full fiscal quarter where gaming capacity is equal to or greater than 50% for the entirety of such fiscal quarter, or during any voluntary or involuntary closing period, as follows: (i) Bankers’ Acceptances, Letters of Credit, LIBOR Loans and CDOR Loans equal to 500 basis points, (ii) Prime Rate Loans and USBR Loans equal to 350 basis points and (iii) Undrawn Fee equal to 125 basis points. The MGE Niagara Amended Credit Agreement also amended the financial maintenance covenants applicable to MGE Niagara as follows: (i) during any Closure Period (as defined in the MGE Niagara Amended Credit Agreement), (a) minimum weekly liquidity in the amount of 12.5 million Canadian dollars and (b) minimum monthly contractual payments from the Ontario Lottery and Gaming Corporation in the amount of 3.75 million Canadian dollars; (ii) after a reopening of the MGE Niagara Resorts, minimum liquidity in the amount of 15.0 million Canadian dollars, tested weekly until such time as the MGE Niagara Resorts have been open for twelve Finally, the MGE Niagara Amended Credit Agreement restricts Permitted Management and Consulting Fees and other Distributions (as defined in the MGE Niagara Amended Credit Agreement) to those permitted by lender consent until (i) the completion of four consecutive fiscal quarters demonstrating compliance with the maximum Total Leverage Ratio (as defined in the MGE Niagara Amended Credit Agreement) and (ii) a Total Leverage Ratio (as defined in the MGE Niagara Amended Credit Agreement) of less than 3.00:1.00 for the two most recent consecutive fiscal quarters. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Jun. 30, 2021 | |
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 Company’s results for the three months and nine months ended June 30, 2021 are not indicative of operating results expected for the entire fiscal year, particularly given the impact of COVID-19 as discussed above. |
Revenue Disaggregation and Contract and Contract-related Liabilities | Revenue DisaggregationThe 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 primarily focused within Connecticut and Pennsylvania. The Company also currently operates and 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.Contract and Contract-related LiabilitiesA 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. |
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 standards were adopted during the nine months ended June 30, 2021: ASU 2016-13 In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurements of Credit Losses on Financial Instruments” (“ASU 2016-13”), which sets forth a current expected credit loss model requiring a company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This model replaced the prior incurred loss model and applies to the measurement of credit losses on financial assets measured at amortized cost, as well as certain off-balance sheet credit exposures. Effective October 1, 2020, the Company adopted ASU 2016-13 and its adoption did not have a material impact on the Company's financial statements. 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 added, amended and removed 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. Effective October 1, 2020, the Company adopted ASU 2018-13 and its adoption did not have a material impact on the Company's financial statement disclosures. The following accounting standards will be adopted in future reporting periods: 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 annual reporting periods 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. ASU 2020-06 In August 2020, the FASB issued ASU 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40)” (“ASU 2020-06”), which simplifies the accounting for convertible instruments by removing major separation models required under current guidance. ASU 2020-06 also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective for annual reporting periods beginning after December 15, 2021, including interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact ASU 2020-06 will have on its financial statements and related disclosures, but does not expect its adoption to have a material impact. |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of Revenue | Revenue disaggregation by geographic location and revenue type was as follows (in thousands): For the Three Months Ended June 30, 2021 Connecticut Pennsylvania Nevada Canada (Mohegan Sun) (Mohegan Sun Pocono) (Mohegan Sun (MGE Niagara Resorts) (1) Other Gaming $ 163,938 $ 57,134 $ 6,934 $ 13,283 $ — Food and beverage 16,770 2,940 1,133 — (17) Hotel 20,758 1,430 — — — Retail, entertainment and other 18,595 1,427 295 1,097 179 Management and development — — — — 21,782 Net revenues $ 220,061 $ 62,931 $ 8,362 $ 14,380 $ 21,944 ________ (1) Gaming revenues represent revenues earned under the Casino Operating and Services Agreement. For the Three Months Ended June 30, 2020 Connecticut Pennsylvania Nevada Canada (Mohegan Sun) (Mohegan Sun Pocono) (Mohegan Sun Las Vegas) (1) (MGE Niagara Resorts) (2) Other Gaming $ 67,966 $ 10,112 $ — $ 11,301 $ — Food and beverage 2,779 231 — — (1) Hotel 2,568 21 — — — Retail, entertainment and other 4,926 148 — 45 211 Management and development — — — — 6,546 Net revenues $ 78,239 $ 10,512 $ — $ 11,346 $ 6,756 ________ (1) Mohegan Sun Las Vegas did not open to the public until March 25, 2021. (2) Gaming revenues represent revenues earned under the Casino Operating and Services Agreement. For the Nine Months Ended June 30, 2021 Connecticut Pennsylvania Nevada Canada (Mohegan Sun) (Mohegan Sun Pocono) (Mohegan Sun Las Vegas) (1) (MGE Niagara Resorts) (2) Other Gaming $ 434,928 $ 141,795 $ 8,449 $ 38,502 $ — Food and beverage 39,022 4,913 1,310 — (36) Hotel 52,566 3,327 — — (11) Retail, entertainment and other 48,458 3,357 318 2,691 2,996 Management and development — — — — 53,691 Net revenues $ 574,974 $ 153,392 $ 10,077 $ 41,193 $ 56,640 ________ (1) Mohegan Sun Las Vegas opened to the public on March 25, 2021. (2) Gaming revenues represent revenues earned under the Casino Operating and Services Agreement. For the Nine Months Ended June 30, 2020 Connecticut Pennsylvania Nevada Canada (Mohegan Sun) (Mohegan Sun Pocono) (Mohegan Sun Las Vegas) (1) (MGE Niagara Resorts) (2) Other Gaming $ 352,946 $ 107,499 $ — $ 109,197 $ — Food and beverage 52,734 10,899 — 27,544 (79) Hotel 40,491 3,485 — 6,319 (2) Retail, entertainment and other 57,689 3,685 — 24,542 519 Management and development — — — — 24,012 Net revenues $ 503,860 $ 125,568 $ — $ 167,602 $ 24,450 ________ (1) Mohegan Sun Las Vegas did not open to the public until March 25, 2021. (2) Gaming revenues represent revenues earned under the Casino Operating and Services Agreement. |
Contract with Customer | The following table summarizes these liabilities (in thousands): June 30, 2021 September 30, 2020 Outstanding gaming chips and slot tickets liability $ 8,576 $ 7,623 Loyalty points deferred revenue liability 40,095 35,368 Patron advances and other liability 26,695 17,340 Total $ 75,366 $ 60,331 |
Estimated Fair Value of Financing Facilities and Notes | The estimated fair values of the Company's long-term debt were as follows (in thousands): June 30, 2021 Carrying Value Fair Value New senior secured credit facility - revolving (1) $ 45,000 $ 44,381 2021 8% senior secured notes (1) 1,156,911 1,222,000 2016 7 7/8% senior unsecured notes (1) 493,140 516,875 MGE Niagara credit facility - revolving (1) 28,231 28,231 MGE Niagara credit facility - term loan (1) 71,806 72,594 MGE Niagara convertible debenture (2) 32,264 32,264 Mohegan Expo credit facility (3) 26,211 26,535 Guaranteed credit facility (3) 27,789 28,438 Redemption note payable (3) 57,278 57,278 Other (3) 4,312 4,312 Long-term debt $ 1,942,942 $ 2,032,908 ________ (1) Estimated fair values were based on Level 2 inputs (quoted market prices or prices of similar instruments) as of June 30, 2021. (2) Estimated fair value was based on Level 3 inputs (changes in market conditions) from date of issuance (June 11, 2019) to June 30, 2021. (3) Estimated fair values were based on Level 3 inputs (present value of future payments discounted to carrying value) as of June 30, 2021. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Lease Cost | Information related to weighted average lease terms and discount rates is as follows: June 30, 2021 Weighted average remaining lease terms (years): Operating leases 23 Finance leases 19 Weighted average discount rates: Operating leases 7.68 % Finance leases 7.76 % The components of lease expense are as follows (in thousands): For the For the For the For the Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating lease expense $ 11,456 $ 9,046 $ 34,160 $ 28,022 Short-term lease expense 9,248 2,747 23,464 20,297 Variable lease expense 4,666 2,354 12,531 9,161 Finance lease expense: Amortization of right-of-use assets 1,602 593 2,854 1,806 Interest on lease liabilities 2,067 373 2,942 1,161 Less: sublease income (1) (5,410) (69) (13,467) (16,794) Total $ 23,629 $ 15,044 $ 62,484 $ 43,653 ________ (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 For the Nine Months Ended Nine Months Ended June 30, 2021 June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Payments on operating lease obligations $ 12,072 $ 18,820 Payments for interest on finance lease obligations 174 853 Payments on finance lease obligations 808 1,034 Total $ 13,054 $ 20,707 |
Operating Lease Liability | Maturities of right-of-use lease obligations are as follows (in thousands): Operating Leases Finance Leases Fiscal years: 2021 (1) $ 12,614 $ 3,719 2022 39,458 8,144 2023 40,437 12,269 2024 40,240 11,839 2025 40,499 11,439 Thereafter 839,308 172,231 Total future lease payments 1,012,556 219,641 Less: amounts representing interest (543,621) (105,696) Plus: residual values — 327 Present value of future lease payments 468,935 114,272 Less: current portion of lease obligations (12,312) (5,283) Lease obligations, net of current portion $ 456,623 $ 108,989 ________ (1) Represents payment obligations from July 1, 2021 to September 30, 2021. |
Finance Lease Liability | Maturities of right-of-use lease obligations are as follows (in thousands): Operating Leases Finance Leases Fiscal years: 2021 (1) $ 12,614 $ 3,719 2022 39,458 8,144 2023 40,437 12,269 2024 40,240 11,839 2025 40,499 11,439 Thereafter 839,308 172,231 Total future lease payments 1,012,556 219,641 Less: amounts representing interest (543,621) (105,696) Plus: residual values — 327 Present value of future lease payments 468,935 114,272 Less: current portion of lease obligations (12,312) (5,283) Lease obligations, net of current portion $ 456,623 $ 108,989 ________ (1) Represents payment obligations from July 1, 2021 to September 30, 2021. |
Schedule of Rent Expense | Lease income consists of the following (in thousands): For the Three Months Ended June 30, 2021 For the Three Months Ended June 30, 2020 Hotel Retail, Hotel Retail, Fixed rent $ 14,635 $ 742 $ 2,444 $ 1,299 Variable rent — 1,634 — (96) Total $ 14,635 $ 2,376 $ 2,444 $ 1,203 For the Nine Months Ended June 30, 2021 For the Nine Months Ended June 30, 2020 Hotel Retail, Hotel Retail, Fixed rent $ 36,137 $ 3,626 $ 29,542 $ 5,964 Variable rent — 3,079 — 3,035 Total $ 36,137 $ 6,705 $ 29,542 $ 8,999 |
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, is as follows (in thousands): Fiscal years: Operating Leases Fixed Rental Income 2021 (1) $ 1,608 2022 5,293 2023 4,629 2024 4,113 2025 2,876 Thereafter 7,830 Total $ 26,349 ________ (1) Represents future fixed rental income from July 1, 2021 to September 30, 2021. |
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): June 30, 2021 September 30, 2020 Property and equipment, at cost $ 491,527 $ 484,143 Less: accumulated depreciation (216,354) (198,080) Property and equipment, net $ 275,173 $ 286,063 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following (in thousands): June 30, 2021 September 30, 2020 New Senior Secured Credit Facility - Revolving $ 45,000 $ — Prior Senior Secured Credit Facility - Revolving — 197,000 Prior Senior Secured Credit Facility - Term Loan A, net of discount and debt issuance costs of $4,199 — 227,710 Prior Senior Secured Credit Facility - Term Loan B, net of discount and debt issuance costs of $20,809 — 792,829 2021 8% Senior Secured Notes, net of discount and debt issuance costs of $18,089 1,156,911 — 2016 7 7/8% Senior Unsecured Notes, net of discount and debt issuance costs of $6,860 and $8,179, respectively 493,140 491,821 MGE Niagara Credit Facility - Revolving 28,231 26,187 MGE Niagara Credit Facility - Term Loan, net of debt issuance costs of $788 and $847, respectively 71,806 69,297 MGE Niagara Convertible Debenture 32,264 29,928 Mohegan Expo Credit Facility, net of debt issuance costs of $324 and $658, respectively 26,211 27,750 Guaranteed Credit Facility, net of debt issuance costs of $649 and $877, respectively 27,789 29,529 Mohegan Tribe Subordinated Loan — 5,000 Redemption Note Payable, net of discount of $10,302 and $15,701, respectively 57,278 69,099 Other 4,312 3,860 Long-term debt 1,942,942 1,970,010 Less: current portion of long-term debt (58,422) (75,355) Long-term debt, net of current portion $ 1,884,520 $ 1,894,655 |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt are as follows (in thousands): Fiscal Years 2021 $ 8,063 2022 58,447 2023 74,793 2024 130,252 2025 500,025 Thereafter 1,208,374 Total $ 1,979,954 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Financial Information Related to Segments | For the Three Months Ended For the Nine Months Ended (in thousands) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net revenues: Mohegan Sun $ 220,061 $ 78,239 $ 574,974 $ 503,860 Mohegan Sun Pocono 62,931 10,512 153,392 125,568 MGE Niagara Resorts 14,380 11,346 41,193 167,602 Management, development and other 21,782 6,546 53,691 24,012 All other 8,362 — 10,077 — Corporate 162 210 2,949 438 Inter-segment 511 346 1,322 (528) Total $ 328,189 $ 107,199 $ 837,598 $ 820,952 Income (loss) from operations: Mohegan Sun $ 65,183 $ 1,692 $ 144,195 $ 65,951 Mohegan Sun Pocono 12,319 (8,888) 20,116 (122,635) MGE Niagara Resorts (11,755) (9,778) (35,553) (10,163) Management, development and other 5,711 2,200 12,711 1,871 All other (1,045) — (499) — Corporate (6,374) (5,749) (21,459) (18,360) Inter-segment 2 (14) (4) (31) Total $ 64,041 $ (20,537) $ 119,507 $ (83,367) For the Nine Months Ended (in thousands) June 30, 2021 June 30, 2020 Capital expenditures incurred: Mohegan Sun $ 12,680 $ 9,839 Mohegan Sun Pocono 4,182 3,108 MGE Niagara Resorts 9,654 15,330 Management, development and other 6,974 112,161 All other 89,019 — Corporate 307 483 Total $ 122,816 $ 140,921 (in thousands) June 30, 2021 September 30, 2020 Total assets: Mohegan Sun $ 1,279,799 $ 1,271,435 Mohegan Sun Pocono 406,393 409,630 MGE Niagara Resorts 581,360 581,562 Management, development and other 453,071 423,313 All other 100,704 — Corporate 1,011,071 992,874 Inter-segment (1,002,120) (971,626) Total $ 2,830,278 $ 2,707,188 |
ORGANIZATION AND BASIS OF PRE_4
ORGANIZATION AND BASIS OF PRESENTATION - Organization (Details) seat in Thousands, $ in Thousands | Jan. 26, 2021USD ($) | Jun. 30, 2021USD ($)aseat | Jun. 30, 2020USD ($) |
Entity Information [Line Items] | |||
Number of seats | seat | 5 | ||
Proceeds from issuance of senior secured notes | $ 1,175,000 | $ 0 | |
New Senior Secured Credit Facility | |||
Entity Information [Line Items] | |||
Borrowing capacity | $ 262,900 | ||
New Senior Secured Notes | |||
Entity Information [Line Items] | |||
Proceeds from issuance of senior secured notes | $ 1,200,000 | ||
MGE Niagara | |||
Entity Information [Line Items] | |||
Ownership percentage | 10.00% | ||
Mohegan Sun | |||
Entity Information [Line Items] | |||
Size of gaming and entertainment complex (in acres) | a | 196 | ||
Mohegan Sun Pocono | |||
Entity Information [Line Items] | |||
Size of gaming and entertainment complex (in acres) | a | 400 |
ORGANIZATION AND BASIS OF PRE_5
ORGANIZATION AND BASIS OF PRESENTATION - Mohegan Sun Casino at Virgin Hotels Las Vegas (Details) ft² in Thousands, $ in Millions | 1 Months Ended | 9 Months Ended |
Jul. 31, 2019USD ($)ft² | Jun. 30, 2021 | |
Virgin Hotels Las Vegas | ||
Lessee, Lease, Description [Line Items] | ||
Area of real estate | ft² | 60 | |
Term of lease | 20 years | |
Annual lease payment | $ 9 | |
Annual payments maximum amount | $ 15 | |
MGNV LLC | ||
Lessee, Lease, Description [Line Items] | ||
Ownership percentage | 100.00% |
ORGANIZATION AND BASIS OF PRE_6
ORGANIZATION AND BASIS OF PRESENTATION - Revenue Disaggregation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 328,189 | $ 107,199 | $ 837,598 | $ 820,952 |
Connecticut | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 220,061 | 78,239 | 574,974 | 503,860 |
Pennsylvania | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 62,931 | 10,512 | 153,392 | 125,568 |
Nevada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 8,362 | 0 | 10,077 | 0 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 14,380 | 11,346 | 41,193 | 167,602 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 21,944 | 6,756 | 56,640 | 24,450 |
Gaming | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 241,289 | 89,379 | 623,674 | 569,642 |
Gaming | Connecticut | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 163,938 | 67,966 | 434,928 | 352,946 |
Gaming | Pennsylvania | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 57,134 | 10,112 | 141,795 | 107,499 |
Gaming | Nevada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 6,934 | 0 | 8,449 | 0 |
Gaming | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 13,283 | 11,301 | 38,502 | 109,197 |
Gaming | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 20,826 | 3,009 | 45,209 | 91,098 |
Food and beverage | Connecticut | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 16,770 | 2,779 | 39,022 | 52,734 |
Food and beverage | Pennsylvania | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 2,940 | 231 | 4,913 | 10,899 |
Food and beverage | Nevada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,133 | 0 | 1,310 | 0 |
Food and beverage | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 27,544 |
Food and beverage | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | (17) | (1) | (36) | (79) |
Hotel | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 22,188 | 2,589 | 55,882 | 50,293 |
Hotel | Connecticut | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 20,758 | 2,568 | 52,566 | 40,491 |
Hotel | Pennsylvania | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,430 | 21 | 3,327 | 3,485 |
Hotel | Nevada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Hotel | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 6,319 |
Hotel | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | (11) | (2) |
Retail, entertainment and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 43,886 | 12,222 | 112,833 | 109,919 |
Retail, entertainment and other | Connecticut | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 18,595 | 4,926 | 48,458 | 57,689 |
Retail, entertainment and other | Pennsylvania | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,427 | 148 | 3,357 | 3,685 |
Retail, entertainment and other | Nevada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 295 | 0 | 318 | 0 |
Retail, entertainment and other | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,097 | 45 | 2,691 | 24,542 |
Retail, entertainment and other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 179 | 211 | 2,996 | 519 |
Management and development | Connecticut | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Management and development | Pennsylvania | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Management and development | Nevada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Management and development | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Management and development | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 21,782 | $ 6,546 | $ 53,691 | $ 24,012 |
ORGANIZATION AND BASIS OF PRE_7
ORGANIZATION AND BASIS OF PRESENTATION - Amendments to MGE Niagara Casino Operating and Services Agreement (Details) - USD ($) $ in Thousands | Jun. 18, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 |
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Deferred Payments Due, Period | 12 months | |||
Fixed lease payment | $ 12,072 | $ 18,820 | ||
Long-term liability | 456,623 | $ 411,698 | ||
Lease liability | $ 1,012,556 | |||
Ontario Lottery and Gaming Corporation | ||||
Lessee, Lease, Description [Line Items] | ||||
Casino operating and services agreement term | 21 years | |||
Annual thresholds period | 3 years | |||
Fixed lease payment | $ 26,900 | |||
Variable lease payment | 11,500 | |||
Lease liability | $ 4,000 | |||
Contract liability, noncurrent | $ 34,400 |
ORGANIZATION AND BASIS OF PRE_8
ORGANIZATION AND BASIS OF PRESENTATION - Contract with Customers (Details) $ in Thousands | 9 Months Ended | |
Jun. 30, 2021USD ($)type | Sep. 30, 2020USD ($) | |
Revenue from External Customer [Line Items] | ||
Contract assets | $ 98,600 | $ 129,200 |
Number of types of liabilities | type | 3 | |
Contract related liabilities | $ 75,366 | 60,331 |
Mohegan Sun Pocono | ||
Revenue from External Customer [Line Items] | ||
Contract related liabilities | 15,900 | 16,800 |
Outstanding gaming chips and slot tickets liability | ||
Revenue from External Customer [Line Items] | ||
Contract related liabilities | 8,576 | 7,623 |
Loyalty points deferred revenue liability | ||
Revenue from External Customer [Line Items] | ||
Contract related liabilities | 40,095 | 35,368 |
Patron advances and other liability | ||
Revenue from External Customer [Line Items] | ||
Contract related liabilities | $ 26,695 | $ 17,340 |
ORGANIZATION AND BASIS OF PRE_9
ORGANIZATION AND BASIS OF PRESENTATION - Schedule of Estimated Fair Value of Financing Facilities and Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jan. 26, 2021 |
2021 Senior Unsecured Notes | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Note stated interest rate | 8.00% | 8.00% |
2016 7 7/8% Senior Unsecured Notes | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Note stated interest rate | 7.875% | |
Carrying Value | Fair Value, Inputs, Level 2 | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | $ 1,942,942 | |
Carrying Value | Fair Value, Inputs, Level 2 | New Senior Secured Credit Facility - Revolving | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 45,000 | |
Carrying Value | Fair Value, Inputs, Level 2 | 2021 Senior Unsecured Notes | Other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Note value | 1,156,911 | |
Carrying Value | Fair Value, Inputs, Level 2 | 2016 7 7/8% Senior Unsecured Notes | Other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Note value | 493,140 | |
Carrying Value | Fair Value, Inputs, Level 2 | MGE Niagara Credit Facility - Revolving | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 28,231 | |
Carrying Value | Fair Value, Inputs, Level 2 | MGE Niagara Credit Facility - Term Loan | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 71,806 | |
Carrying Value | Fair Value, Inputs, Level 3 | MGE Niagara Convertible Debenture | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 32,264 | |
Carrying Value | Fair Value, Inputs, Level 3 | Mohegan Expo Credit Facility | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 26,211 | |
Carrying Value | Fair Value, Inputs, Level 3 | Guaranteed Credit Facility | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 27,789 | |
Carrying Value | Fair Value, Inputs, Level 3 | Redemption Note Payable | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 57,278 | |
Carrying Value | Fair Value, Inputs, Level 3 | Other | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 4,312 | |
Fair Value | Fair Value, Inputs, Level 2 | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 2,032,908 | |
Fair Value | Fair Value, Inputs, Level 2 | New Senior Secured Credit Facility - Revolving | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 44,381 | |
Fair Value | Fair Value, Inputs, Level 2 | 2021 Senior Unsecured Notes | Other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Note value | 1,222,000 | |
Fair Value | Fair Value, Inputs, Level 2 | 2016 7 7/8% Senior Unsecured Notes | Other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Note value | 516,875 | |
Fair Value | Fair Value, Inputs, Level 2 | MGE Niagara Credit Facility - Revolving | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 28,231 | |
Fair Value | Fair Value, Inputs, Level 2 | MGE Niagara Credit Facility - Term Loan | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 72,594 | |
Fair Value | Fair Value, Inputs, Level 3 | MGE Niagara Convertible Debenture | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 32,264 | |
Fair Value | Fair Value, Inputs, Level 3 | Mohegan Expo Credit Facility | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 26,535 | |
Fair Value | Fair Value, Inputs, Level 3 | Guaranteed Credit Facility | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 28,438 | |
Fair Value | Fair Value, Inputs, Level 3 | Redemption Note Payable | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | 57,278 | |
Fair Value | Fair Value, Inputs, Level 3 | Other | Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Credit facility value | $ 4,312 |
LEASES - Additional Information
LEASES - Additional Information (Details) | Jun. 30, 2021 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Finance lease, contract term | 1 month |
Lessee, operating lease, contract term | 1 month |
Operating lease, contract term | 1 month |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Finance lease, contract term | 50 years |
Lessee, operating lease, contract term | 50 years |
Operating lease, contract term | 21 years |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease, Cost [Abstract] | ||||
Weighted average remaining lease term, Operating leases | 23 years | 23 years | ||
Weighted average remaining lease term, Finance leases | 19 years | 19 years | ||
Weighted average discount rate, Operating leases | 7.68% | 7.68% | ||
Weighted average discount rate, Finance leases | 7.76% | 7.76% | ||
Operating lease cost | ||||
Operating lease expense | $ 11,456 | $ 9,046 | $ 34,160 | $ 28,022 |
Short-term lease expense | 9,248 | 2,747 | 23,464 | 20,297 |
Variable lease expense | 4,666 | 2,354 | 12,531 | 9,161 |
Finance lease expense: | ||||
Amortization of right-of-use assets | 1,602 | 593 | 2,854 | 1,806 |
Interest on lease liabilities | 2,067 | 373 | 2,942 | 1,161 |
Less: sublease income | (5,410) | (69) | (13,467) | (16,794) |
Total | $ 23,629 | $ 15,044 | $ 62,484 | $ 43,653 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Payments on operating lease obligations | $ 12,072 | $ 18,820 |
Payments for interest on finance lease obligations | 174 | 853 |
Payments on finance lease obligations | 808 | 1,034 |
Total | $ 13,054 | $ 20,707 |
LEASES - Operating and Finance
LEASES - Operating and Finance Lease Liability (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Operating Leases | ||
2021 | $ 12,614 | |
2022 | 39,458 | |
2023 | 40,437 | |
2024 | 40,240 | |
2025 | 40,499 | |
Thereafter | 839,308 | |
Total future lease payments | 1,012,556 | |
Less: amounts representing interest | (543,621) | |
Plus: residual values | 0 | |
Present value of future lease payments | 468,935 | |
Less: current portion of lease obligations | (12,312) | $ (19,939) |
Lease obligations, net of current portion | 456,623 | 411,698 |
Finance Leases | ||
2021 | 3,719 | |
2022 | 8,144 | |
2023 | 12,269 | |
2024 | 11,839 | |
2025 | 11,439 | |
Thereafter | 172,231 | |
Total future lease payments | 219,641 | |
Less: amounts representing interest | (105,696) | |
Plus: residual values | 327 | |
Present value of future lease payments | 114,272 | |
Less: current portion of lease obligations | (5,283) | (2,802) |
Lease obligations, net of current portion | $ 108,989 | $ 28,209 |
LEASES - Lease Revenue (Details
LEASES - Lease Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Hotel | ||||
Lessor, Lease, Description [Line Items] | ||||
Fixed rent | $ 14,635 | $ 2,444 | $ 36,137 | $ 29,542 |
Variable rent | 0 | 0 | 0 | 0 |
Total | 14,635 | 2,444 | 36,137 | 29,542 |
Retail, Entertainment and Other | ||||
Lessor, Lease, Description [Line Items] | ||||
Fixed rent | 742 | 1,299 | 3,626 | 5,964 |
Variable rent | 1,634 | (96) | 3,079 | 3,035 |
Total | $ 2,376 | $ 1,203 | $ 6,705 | $ 8,999 |
LEASES - Future Minimum Rentals
LEASES - Future Minimum Rentals (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 1,608 |
2022 | 5,293 |
2023 | 4,629 |
2024 | 4,113 |
2025 | 2,876 |
Thereafter | 7,830 |
Total | $ 26,349 |
LEASES - Cost and Accumulated D
LEASES - Cost and Accumulated Depreciation (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Sep. 30, 2020 |
Lessee, Lease, Description [Line Items] | ||
Property and equipment, net | $ 1,554,248 | $ 1,498,047 |
Mohegan Sun | ||
Lessee, Lease, Description [Line Items] | ||
Property and equipment, at cost | 491,527 | 484,143 |
Less: accumulated depreciation | (216,354) | (198,080) |
Property and equipment, net | $ 275,173 | $ 286,063 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jan. 26, 2021 | Sep. 30, 2020 |
Debt Schedule [Abstract] | |||
Long-term debt | $ 1,942,942 | $ 1,970,010 | |
Less: current portion of long-term debt | (58,422) | (75,355) | |
Long-term debt, net of current portion | 1,884,520 | 1,894,655 | |
Credit Facility | New Senior Secured Credit Facility - Revolving | |||
Debt Schedule [Abstract] | |||
Long-term debt | 45,000 | 0 | |
Credit Facility | Prior Senior Secured Credit Facility - Revolving | |||
Debt Schedule [Abstract] | |||
Long-term debt | 0 | 197,000 | |
Credit Facility | Prior Senior Secured Credit Facility - Term Loan A | |||
Debt Schedule [Abstract] | |||
Long-term debt | 0 | 227,710 | |
Debt issuance costs | 4,199 | ||
Credit Facility | Senior Secured Credit Facility - Term Loan B | |||
Debt Schedule [Abstract] | |||
Long-term debt | 0 | 792,829 | |
Debt issuance costs | 20,809 | ||
Credit Facility | MGE Niagara Credit Facility - Revolving | |||
Debt Schedule [Abstract] | |||
Long-term debt | 28,231 | 26,187 | |
Credit Facility | MGE Niagara Credit Facility - Term Loan | |||
Debt Schedule [Abstract] | |||
Long-term debt | 71,806 | 69,297 | |
Debt issuance costs | 788 | 847 | |
Credit Facility | Mohegan Expo Credit Facility | |||
Debt Schedule [Abstract] | |||
Long-term debt | 26,211 | 27,750 | |
Debt issuance costs | 324 | 658 | |
Credit Facility | Guaranteed Credit Facility | |||
Debt Schedule [Abstract] | |||
Long-term debt | 27,789 | 29,529 | |
Debt issuance costs | 649 | 877 | |
Credit Facility | Mohegan Tribe Subordinated Loan | |||
Debt Schedule [Abstract] | |||
Long-term debt | 0 | 5,000 | |
Senior Notes | 2021 Senior Unsecured Notes | |||
Debt Schedule [Abstract] | |||
Long-term debt | 1,156,911 | 0 | |
Debt issuance costs | $ 18,089 | ||
Note stated interest rate | 8.00% | 8.00% | |
Senior Notes | 2016 7 7/8% Senior Unsecured Notes | |||
Debt Schedule [Abstract] | |||
Long-term debt | $ 493,140 | 491,821 | |
Debt issuance costs | $ 6,860 | 8,179 | |
Note stated interest rate | 7.875% | ||
Convertible Debenture | MGE Niagara Convertible Debenture | |||
Debt Schedule [Abstract] | |||
Long-term debt | $ 32,264 | 29,928 | |
Note Payable to Banks | Redemption Note Payable | |||
Debt Schedule [Abstract] | |||
Long-term debt | 57,278 | 69,099 | |
Debt issuance costs | 10,302 | 15,701 | |
Other | Other | |||
Debt Schedule [Abstract] | |||
Long-term debt | $ 4,312 | $ 3,860 |
LONG-TERM DEBT - Fiscal Year Ma
LONG-TERM DEBT - Fiscal Year Maturity (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 8,063 |
2022 | 58,447 |
2023 | 74,793 |
2024 | 130,252 |
2025 | 500,025 |
Thereafter | 1,208,374 |
Total | $ 1,979,954 |
LONG-TERM DEBT - Refinancing Tr
LONG-TERM DEBT - Refinancing Transactions (Details) - USD ($) $ in Thousands | Jan. 26, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||||
Loss on modification and early extinguishment of debt | $ (20) | $ 0 | $ (23,978) | $ 0 | |
Fourth Amendment To Credit Agreement | Senior Secured Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Interest and debt expense | $ 24,000 | ||||
Loss on modification and early extinguishment of debt | 23,700 | ||||
Debt discounts totaling | 100 | ||||
Debt issuance costs, net | 4,500 | ||||
Amortization of debt discount (premium) | $ 19,400 |
LONG-TERM DEBT - New Senior Sec
LONG-TERM DEBT - New Senior Secured Credit Facility (Details) - New Senior Secured Credit Facility $ in Thousands | Jan. 26, 2021USD ($) |
Debt Instrument [Line Items] | |
Borrowing capacity | $ 262,900 |
Credit Facility | |
Debt Instrument [Line Items] | |
Borrowing capacity | $ 262,875 |
Credit Facility | Minimum | |
Debt Instrument [Line Items] | |
Undrawn commitment fee percentage | 0.375% |
Credit Facility | Maximum | |
Debt Instrument [Line Items] | |
Undrawn commitment fee percentage | 0.50% |
Federal Funds Rate | Credit Facility | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
London Interbank Offered Rate (LIBOR) | Credit Facility | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Leverage-Based Margin | Credit Facility | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Leverage-Based Margin | Credit Facility | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.75% |
London Interbank Offered Rate (LIBOR), Floor Rate | Credit Facility | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.75% |
Eurodollar Rate Loans, Leverage-Based Margin | Credit Facility | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
Eurodollar Rate Loans, Leverage-Based Margin | Credit Facility | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.75% |
LONG-TERM DEBT - Senior Secured
LONG-TERM DEBT - Senior Secured Credit Facilities - Non-cash Transactions (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Jun. 30, 2020 |
New Senior Secured Credit Facility | Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit, principal payment | $ 45 | $ 10.5 |
LONG-TERM DEBT - Line of Credit
LONG-TERM DEBT - Line of Credit (Details) - New Senior Secured Credit Facility $ in Thousands | Jan. 26, 2021USD ($) |
Debt Instrument [Line Items] | |
Borrowing capacity | $ 262,900 |
Credit Facility | |
Debt Instrument [Line Items] | |
Borrowing capacity | 262,875 |
Credit Facility | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Borrowing capacity | $ 25,000 |
LONG-TERM DEBT - Main Street Te
LONG-TERM DEBT - Main Street Term Loan Facility (Details) - Term Loan Facility - USD ($) $ in Millions | Dec. 01, 2020 | Dec. 15, 2020 |
Note Payable to Banks | ||
Short-term Debt [Line Items] | ||
Borrowing capacity | $ 50 | |
Amount borrowed | $ 50 | |
London Interbank Offered Rate (LIBOR) | ||
Short-term Debt [Line Items] | ||
Basis spread on variable rate | 3.00% |
LONG-TERM DEBT - 2021 8 Percent
LONG-TERM DEBT - 2021 8 Percent Senior Secured Notes (Details) - USD ($) $ in Thousands | Jan. 26, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||
Proceeds from issuance of senior secured notes | $ 1,175,000 | $ 0 | |
2021 Senior Unsecured Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Note stated interest rate | 8.00% | 8.00% | |
Proceeds from issuance of senior secured notes | $ 1,175,000 | ||
2021 Senior Unsecured Notes | Prior to February 1, 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Redemption price (as a percent) | 100.00% | ||
2021 Senior Unsecured Notes | Initial twelve-month period, prior to February 1, 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Redemption price (as a percent) | 103.00% | ||
2021 Senior Unsecured Notes | Initial twelve-month period, prior to February 1, 2023 | Senior Notes | Maximum | |||
Debt Instrument [Line Items] | |||
Percent amount the can be redeemed | 10.00% | ||
2021 Senior Unsecured Notes | Subsequent the initial twelve-month period, prior to February 1, 2023 | Senior Notes | Maximum | |||
Debt Instrument [Line Items] | |||
Percent amount the can be redeemed | 10.00% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 4 | ||||
Revenues: | |||||
Net revenues | $ 328,189 | $ 107,199 | $ 837,598 | $ 820,952 | |
Income (loss) from operations: | |||||
Income (loss) from operations | 64,041 | (20,537) | 119,507 | (83,367) | |
Capital expenditures incurred: | |||||
Capital expenditures incurred | 122,816 | 140,921 | |||
ASSETS | |||||
Total assets | 2,830,278 | 2,830,278 | $ 2,707,188 | ||
Operating segments | Mohegan Sun | |||||
Revenues: | |||||
Net revenues | 220,061 | 78,239 | 574,974 | 503,860 | |
Income (loss) from operations: | |||||
Income (loss) from operations | 65,183 | 1,692 | 144,195 | 65,951 | |
Capital expenditures incurred: | |||||
Capital expenditures incurred | 12,680 | 9,839 | |||
ASSETS | |||||
Total assets | 1,279,799 | 1,279,799 | 1,271,435 | ||
Operating segments | Mohegan Sun Pocono | |||||
Revenues: | |||||
Net revenues | 62,931 | 10,512 | 153,392 | 125,568 | |
Income (loss) from operations: | |||||
Income (loss) from operations | 12,319 | (8,888) | 20,116 | (122,635) | |
Capital expenditures incurred: | |||||
Capital expenditures incurred | 4,182 | 3,108 | |||
ASSETS | |||||
Total assets | 406,393 | 406,393 | 409,630 | ||
Operating segments | MGE Niagara Resorts | |||||
Revenues: | |||||
Net revenues | 14,380 | 11,346 | 41,193 | 167,602 | |
Income (loss) from operations: | |||||
Income (loss) from operations | (11,755) | (9,778) | (35,553) | (10,163) | |
Capital expenditures incurred: | |||||
Capital expenditures incurred | 9,654 | 15,330 | |||
ASSETS | |||||
Total assets | 581,360 | 581,360 | 581,562 | ||
Operating segments | Management, development and other | |||||
Revenues: | |||||
Net revenues | 21,782 | 6,546 | 53,691 | 24,012 | |
Income (loss) from operations: | |||||
Income (loss) from operations | 5,711 | 2,200 | 12,711 | 1,871 | |
Capital expenditures incurred: | |||||
Capital expenditures incurred | 6,974 | 112,161 | |||
ASSETS | |||||
Total assets | 453,071 | 453,071 | 423,313 | ||
Operating segments | All other | |||||
Revenues: | |||||
Net revenues | 8,362 | 0 | 10,077 | 0 | |
Income (loss) from operations: | |||||
Income (loss) from operations | (1,045) | 0 | (499) | 0 | |
Capital expenditures incurred: | |||||
Capital expenditures incurred | 89,019 | 0 | |||
ASSETS | |||||
Total assets | 100,704 | 100,704 | 0 | ||
Corporate | |||||
Revenues: | |||||
Net revenues | 162 | 210 | 2,949 | 438 | |
Income (loss) from operations: | |||||
Income (loss) from operations | (6,374) | (5,749) | (21,459) | (18,360) | |
Capital expenditures incurred: | |||||
Capital expenditures incurred | 307 | 483 | |||
ASSETS | |||||
Total assets | 1,011,071 | 1,011,071 | 992,874 | ||
Inter-segment | |||||
Revenues: | |||||
Net revenues | 511 | 346 | 1,322 | (528) | |
Income (loss) from operations: | |||||
Income (loss) from operations | 2 | $ (14) | (4) | $ (31) | |
ASSETS | |||||
Total assets | $ (1,002,120) | $ (1,002,120) | $ (971,626) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Credit Facility $ in Thousands | Jul. 14, 2021CAD ($)quarter | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2021CAD ($) |
MGE Niagara Amended Credit Agreement | Forecast | ||||
Subsequent Event [Line Items] | ||||
Maximum total leverage ratio | 4.50 | |||
MGE Niagara Amended Credit Agreement | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Gaming capacity percentage (in a percent) | 50.00% | |||
Undrawn commitment fee percentage | 1.25% | |||
Minimum weekly liquidity amount | $ 12,500 | |||
Minimum net cash subsidy received | 3,750 | |||
Minimum monthly liquidity amount | $ 15,000 | |||
Testing period | 12 months | |||
Additional period | 6 months | |||
Minimum fixed charge coverage ratio | 1.10 | |||
Number of quarters | quarter | 4 | |||
Maximum total leverage ratio | 5 | |||
Total leverage ratio | 3 | |||
Number of recent quarters | quarter | 2 | |||
MGE Niagara Amended Credit Agreement | Subsequent Event | CDOR | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 5.00% | |||
MGE Niagara Amended Credit Agreement | Subsequent Event | Prime Rate | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 3.50% | |||
MGE Niagara Amended Credit Agreement | Subsequent Event | Forecast | ||||
Subsequent Event [Line Items] | ||||
Maximum total leverage ratio | 4 | |||
New MGE Niagara Revolving Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Borrowing capacity | $ 180,000 | |||
New MGE Niagara Swingline Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Borrowing capacity | 20,000 | |||
New MGE Niagara Term Loan Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Borrowing capacity | 90,000 | |||
New MGE Niagara Resorts Letter Of Credit Sub-Limit | ||||
Subsequent Event [Line Items] | ||||
Borrowing capacity | $ 100,000 | |||
New MGE Niagara Resorts Letter Of Credit Sub-Limit | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Borrowing capacity | $ 45,000 |