Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 15, 2021 | Jun. 30, 2020 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-37754 | ||
Entity Registrant Name | RED ROCK RESORTS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-5081182 | ||
Entity Address, Address Line One | 1505 South Pavilion Center Drive | ||
Entity Address, City or Town | Las Vegas | ||
Entity Address, State or Province | NV | ||
Entity Address, Postal Zip Code | 89135 | ||
City Area Code | 702 | ||
Local Phone Number | 495-3000 | ||
Title of 12(b) Security | Class A Common Stock, $.01 par value | ||
Trading Symbol | RRR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 730.9 | ||
Entity Central Index Key | 0001653653 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference [Text Block] | Portions of the registrant’s definitive Proxy Statement for the 2021 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year end of December 31, 2020. | ||
Common Class A [Member] | |||
Entity Common Stock, Shares Outstanding | 71,228,168 | ||
Common Class B [Member] | |||
Entity Common Stock, Shares Outstanding | 46,085,804 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 121,176 | $ 128,835 |
Restricted cash | 4,529 | 4,080 |
Receivables, net | 35,130 | 56,683 |
Inventories | 13,079 | 17,765 |
Prepaid gaming tax | 24,316 | 24,424 |
Prepaid expenses and other current assets | 13,827 | 17,641 |
Assets held for sale | 36,902 | 32,202 |
Total current assets | 248,959 | 281,630 |
Property and equipment, net | 2,857,973 | 3,061,762 |
Goodwill | 195,676 | 195,676 |
Intangible assets, net | 100,817 | 108,506 |
Land held for development | 233,740 | 238,440 |
Investments in joint ventures | 8,162 | 8,867 |
Native American development costs | 22,149 | 18,749 |
Deferred tax asset, net | 0 | 113,185 |
Other assets, net | 72,478 | 87,372 |
Total assets | 3,739,954 | 4,114,187 |
Current liabilities: | ||
Accounts payable | 11,208 | 33,970 |
Accrued interest payable | 20,128 | 7,477 |
Other accrued liabilities | 146,077 | 200,560 |
Current portion of long-term debt | 22,844 | 33,989 |
Total current liabilities | 200,257 | 275,996 |
Long-term debt, less current portion | 2,879,163 | 2,999,302 |
Other long-term liabilities | 28,499 | 31,228 |
Payable pursuant to tax receivable agreement | 27,394 | 25,064 |
Total liabilities | 3,135,313 | 3,331,590 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Additional paid-in capital | 385,579 | 376,229 |
(Accumulated deficit) retained earnings | (33,071) | 124,423 |
Accumulated other comprehensive loss | (623) | (641) |
Total Red Rock Resorts, Inc. stockholders’ equity | 352,598 | 500,717 |
Noncontrolling interest | 252,043 | 281,880 |
Total stockholders’ equity | 604,641 | 782,597 |
Total liabilities and stockholders’ equity | 3,739,954 | 4,114,187 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Common stock | 712 | 705 |
Common Class B [Member] | ||
Stockholders’ equity: | ||
Common stock | $ 1 | $ 1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders’ equity: | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Class A [Member] | ||
Stockholders’ equity: | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 71,228,168 | 70,465,422 |
Common Stock, Shares, Outstanding | 71,228,168 | 70,465,422 |
Common Class B [Member] | ||
Stockholders’ equity: | ||
Common Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 46,085,804 | 46,827,370 |
Common Stock, Shares, Outstanding | 46,085,804 | 46,827,370 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating revenues: | |||
Net revenues | $ 1,182,445 | $ 1,856,534 | $ 1,681,030 |
Operating costs and expenses: | |||
Selling, general and administrative | 324,644 | 416,355 | 390,492 |
Depreciation and amortization | 231,391 | 222,211 | 180,255 |
Write-downs and other charges, net | 36,537 | 82,123 | 34,650 |
Tax receivable agreement liability adjustment | (15) | (97) | (90,638) |
Total operating costs and expenses | 1,093,856 | 1,670,533 | 1,308,822 |
Operating income | 88,589 | 186,001 | 372,208 |
Earnings from joint ventures | 1,097 | 1,928 | 2,185 |
Operating income and earnings from joint ventures | 89,686 | 187,929 | 374,393 |
Other (expense) income: | |||
Interest expense, net | (128,465) | (156,679) | (143,099) |
Gain (loss) on extinguishment/modification of debt, net | 240 | (19,939) | 0 |
Change in fair value of derivative instruments | (21,590) | (19,467) | 12,415 |
Other | (333) | (315) | (354) |
Total other expense | (150,148) | (196,400) | (131,038) |
(Loss) income before income tax | (60,462) | (8,471) | 243,355 |
(Provision) benefit for income tax | (114,081) | 1,734 | (23,875) |
Net (loss) income | (174,543) | (6,737) | 219,480 |
Less: net (loss) income attributable to noncontrolling interests | (24,146) | (3,386) | 61,939 |
Net (loss) income attributable to Red Rock Resorts, Inc. | $ (150,397) | $ (3,351) | $ 157,541 |
(Loss) earnings per common share (Note 15): | |||
(Loss) earnings per share of Class A common stock, basic | $ (2.13) | $ (0.05) | $ 2.28 |
(Loss) earnings per share of Class A common stock, diluted | $ (2.13) | $ (0.05) | $ 1.77 |
Weighted-average common shares outstanding: | |||
Basic | 70,542 | 69,565 | 69,115 |
Diluted | 70,542 | 69,565 | 116,859 |
Casino | |||
Operating revenues: | |||
Net revenues | $ 764,255 | $ 984,253 | $ 940,483 |
Operating costs and expenses: | |||
Operating costs and expenses | 232,939 | 351,043 | 326,980 |
Food and beverage | |||
Operating revenues: | |||
Net revenues | 192,899 | 481,558 | 381,197 |
Operating costs and expenses: | |||
Operating costs and expenses | 195,963 | 465,505 | 340,212 |
Room | |||
Operating revenues: | |||
Net revenues | 87,035 | 192,305 | 170,824 |
Operating costs and expenses: | |||
Operating costs and expenses | 49,363 | 81,064 | 78,440 |
Other | |||
Operating revenues: | |||
Net revenues | 56,279 | 106,773 | 100,912 |
Operating costs and expenses: | |||
Operating costs and expenses | 23,034 | 52,329 | 48,431 |
Management fees | |||
Operating revenues: | |||
Net revenues | $ 81,977 | $ 91,645 | $ 87,614 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (174,543) | $ (6,737) | $ 219,480 |
Other comprehensive loss, net of tax: | |||
Loss on interest rate swaps from reclassifications into income | (360) | (2,600) | (2,442) |
Minimum pension liability adjustment, net | (196) | (486) | (310) |
Other comprehensive loss, net of tax | (556) | (3,086) | (2,752) |
Comprehensive (loss) income | (175,099) | (9,823) | 216,728 |
Less: comprehensive (loss) income attributable to noncontrolling interests | (24,723) | (4,743) | 60,610 |
Comprehensive (loss) income attributable to Red Rock Resorts, Inc. | $ (150,376) | $ (5,080) | $ 156,118 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2017 | $ 631,712 | $ 689 | $ 1 | $ 349,430 | $ 26,138 | $ 2,473 | $ 252,981 |
Number of shares at Dec. 31, 2017 | 68,898 | 47,264 | |||||
Net income (loss) | 219,480 | 157,541 | 61,939 | ||||
Other comprehensive income (loss), net of tax | (2,752) | (1,423) | (1,329) | ||||
Share-based compensation | 11,343 | 11,343 | 0 | ||||
Distributions | (19,940) | (19,940) | |||||
Dividends | (27,810) | (27,810) | |||||
Issuance of restricted stock awards, net of forfeitures | 0 | $ 1 | (1) | ||||
Issuance of restricted stock awards, net of forfeitures (shares) | 122 | ||||||
Repurchases of Class A common stock | (307) | (307) | |||||
Repurchases of Class A common stock (shares) | (10) | ||||||
Stock option exercises | 5,381 | $ 3 | 5,378 | ||||
Stock option exercises (shares) | 273 | ||||||
Exchanges of noncontrolling interests for Class A common stock | $ 0 | $ 4 | 2,149 | 21 | (2,174) | ||
Exchanges of noncontrolling interests for Class A common stock (shares) | 380 | 380 | (380) | ||||
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests | $ (2,528) | (2,528) | |||||
Net deferred tax assets resulting from exchanges of noncontrolling interests | 2,675 | 2,675 | |||||
Tax effects resulting from stock option exercises | (259) | (259) | |||||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 0 | (5,910) | 12 | 5,898 | |||
Balances at Dec. 31, 2018 | 816,995 | $ 697 | $ 1 | 361,970 | 155,869 | 1,083 | 297,375 |
Number of shares at Dec. 31, 2018 | 69,663 | 46,884 | |||||
Net income (loss) | (6,737) | (3,351) | (3,386) | ||||
Other comprehensive income (loss), net of tax | (3,086) | (1,729) | (1,357) | ||||
Share-based compensation | 16,816 | 16,816 | 0 | ||||
Distributions | (18,743) | (18,743) | |||||
Dividends | (28,095) | (28,095) | |||||
Issuance of restricted stock awards, net of forfeitures | 0 | $ 4 | (4) | ||||
Issuance of restricted stock awards, net of forfeitures (shares) | 426 | ||||||
Repurchases of Class A common stock | (376) | (376) | |||||
Repurchases of Class A common stock (shares) | (15) | ||||||
Stock option exercises | 6,707 | $ 3 | 6,704 | ||||
Stock option exercises (shares) | 334 | ||||||
Exchanges of noncontrolling interests for Class A common stock | $ 0 | $ 1 | 368 | 1 | (370) | ||
Exchanges of noncontrolling interests for Class A common stock (shares) | 57 | 57 | (57) | ||||
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests | $ (213) | (213) | |||||
Net deferred tax assets resulting from exchanges of noncontrolling interests | 104 | 104 | |||||
Tax effects resulting from stock option exercises | (775) | (775) | |||||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 0 | (8,365) | 4 | 8,361 | |||
Balances at Dec. 31, 2019 | 782,597 | $ 705 | $ 1 | 376,229 | 124,423 | (641) | 281,880 |
Number of shares at Dec. 31, 2019 | 70,465 | 46,827 | |||||
Net income (loss) | (174,543) | (150,397) | (24,146) | ||||
Other comprehensive income (loss), net of tax | (556) | 21 | (577) | ||||
Share-based compensation | 10,889 | 10,889 | 0 | ||||
Distributions | (4,620) | (4,620) | |||||
Dividends | (7,097) | (7,097) | |||||
Issuance of restricted stock awards, net of forfeitures | 0 | $ 0 | 0 | ||||
Issuance of restricted stock awards, net of forfeitures (shares) | (7) | ||||||
Repurchases of Class A common stock | (81) | (81) | |||||
Repurchases of Class A common stock (shares) | (7) | ||||||
Stock option exercises | 397 | $ 0 | 397 | ||||
Stock option exercises (shares) | 36 | ||||||
Exchanges of noncontrolling interests for Class A common stock | $ 0 | $ 7 | 4,404 | 1 | (4,412) | ||
Exchanges of noncontrolling interests for Class A common stock (shares) | 741 | 741 | (741) | ||||
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests | $ (2,345) | (2,345) | |||||
Rebalancing of ownership percentage between the Company and noncontrolling interests in Station Holdco | 0 | (3,914) | (4) | 3,918 | |||
Balances at Dec. 31, 2020 | $ 604,641 | $ 712 | $ 1 | $ 385,579 | $ (33,071) | $ (623) | $ 252,043 |
Number of shares at Dec. 31, 2020 | 71,228 | 46,086 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (174,543) | $ (6,737) | $ 219,480 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 231,391 | 222,211 | 180,255 |
Change in fair value of derivative instruments | 21,590 | 19,467 | (12,415) |
Reclassification of unrealized gain on derivative instruments into income | (1,351) | (2,843) | (2,929) |
Write-downs and other charges, net | 17,439 | 7,291 | 3,519 |
Tax receivable agreement liability adjustment | (15) | (97) | (90,638) |
Amortization of debt discount and debt issuance costs | 10,472 | 16,421 | 16,149 |
Share-based compensation | 10,886 | 16,848 | 11,289 |
Earnings from joint ventures | (1,097) | (1,928) | (2,185) |
Distributions from joint ventures | 919 | 1,498 | 2,033 |
(Gain) loss on extinguishment/modification of debt, net | (240) | 19,939 | 0 |
Deferred income tax | 114,081 | (1,735) | 23,860 |
Changes in assets and liabilities: | |||
Receivables, net | 16,425 | (1,072) | (1,863) |
Inventories and prepaid expenses | 10,344 | (397) | (17,749) |
Accounts payable | (21,411) | 9,686 | 2,677 |
Accrued interest payable | 12,651 | 59 | (3,193) |
Other accrued liabilities | (35,384) | 16,314 | 13,619 |
Other, net | 633 | 1,707 | 4,098 |
Net cash provided by operating activities | 212,790 | 316,632 | 346,007 |
Cash flows from investing activities: | |||
Capital expenditures, net of related payables | (58,496) | (353,269) | (579,287) |
Acquisition of land held for development | 0 | (57,354) | (36,106) |
Proceeds from asset sales | 580 | 938 | 4,702 |
Distributions in excess of earnings from joint ventures | 886 | 450 | 1,359 |
Native American development costs | (2,284) | (804) | (702) |
Net settlement of derivative instruments | (14,013) | 11,023 | 9,842 |
Other, net | 3,770 | (6,121) | (6,490) |
Net cash used in investing activities | (69,557) | (405,137) | (606,682) |
Cash flows from financing activities: | |||
Borrowings under credit agreements with original maturity dates greater than three months | 1,057,500 | 690,000 | 440,000 |
Payments under credit agreements with original maturity dates greater than three months | (1,922,375) | (527,449) | (222,743) |
Proceeds from issuance of 4.50% Senior Notes | 750,000 | 0 | 0 |
Cash paid for early extinguishment of debt | (8,791) | (19,636) | 0 |
Proceeds from exercise of stock options | 397 | 6,707 | 5,381 |
Distributions to members and noncontrolling interests | (4,620) | (18,743) | (19,940) |
Dividends paid | (7,307) | (27,899) | (27,698) |
Payment of debt issuance costs | (14,091) | (3,619) | 0 |
Borrowings on other debt | 0 | 42,643 | 0 |
Payments on other debt | (1,075) | (38,167) | (823) |
Payments on tax receivable agreement liability | 0 | 0 | (28,865) |
Other, net | (81) | (675) | (1,123) |
Net cash (used in) provided by financing activities | (150,443) | 103,162 | 144,189 |
(Decrease) increase in cash, cash equivalents and restricted cash | (7,210) | 14,657 | (116,486) |
Balance, beginning of year | 132,915 | 118,258 | 234,744 |
Balance, end of year | 125,705 | 132,915 | 118,258 |
Cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 121,176 | 128,835 | 114,607 |
Restricted cash | 4,529 | 4,080 | 3,651 |
Balance, end of year | 125,705 | 132,915 | 118,258 |
Supplemental cash flow disclosures: | |||
Cash paid for interest, net of amounts capitalized | 109,043 | 143,134 | 124,419 |
Income tax refunds received | 0 | 64 | 176 |
Non-cash investing and financing activities: | |||
Capital expenditures incurred but not yet paid | $ 2,931 | $ 30,626 | $ 112,668 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Costs Capitalized | $ 0 | $ 2,777 | $ 8,048 |
Organization and Background
Organization and Background | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Background | Organization and Background Red Rock Resorts, Inc. (“Red Rock,” or the “Company”) was formed as a Delaware corporation in 2015 to own an indirect equity interest in and manage Station Casinos LLC (“Station LLC”), a Nevada limited liability company. Station LLC is a gaming, development and management company established in 1976 that owns and operates ten major gaming and entertainment facilities and ten smaller casino properties (three of which are 50% owned) in the Las Vegas regional market. Station LLC also managed a casino in northern California on behalf of a Native American tribe through February 5, 2021. The Company owns all of the outstanding voting interests in Station LLC and has an indirect equity interest in Station LLC through its ownership of limited liability interests in Station Holdco LLC (“Station Holdco,” and such interests, “LLC Units”), which owns all of the economic interests in Station LLC. At December 31, 2020, the Company held 60.7% of the economic interests and 100% of the voting power in Station Holdco, subject to certain limited exceptions, and is designated as the sole managing member of both Station Holdco and Station LLC. The Company controls and operates all of the business and affairs of Station Holdco and Station LLC, and conducts all of its operations through these entities. Impact of the COVID-19 Pandemic During 2020, the global pandemic caused by a new strain of coronavirus (“COVID-19”) had a detrimental impact on the United States and Las Vegas economies and significantly negatively impacted the Company’s business. All of the Company’s Las Vegas properties were temporarily closed on March 17, 2020 in compliance with a statewide emergency order mandating the closure of Nevada casinos. On June 4, 2020, the Company reopened its Red Rock, Green Valley Ranch, Santa Fe Station, Boulder Station, Palace Station and Sunset Station properties, as well as its Wildfire properties, subject to state-mandated occupancy and other operational restrictions. At December 31, 2020, the Texas Station, Fiesta Henderson, Fiesta Rancho and Palms properties have not reopened. The Company will continue to assess the performance of the reopened properties, as well as the recovery of the Las Vegas market and the economy as a whole, before considering whether to reopen some or all of the remaining properties. The Company has no plans to reopen any of these properties in 2021. The Company has taken steps to mitigate the effects of the COVID-19 pandemic, property closures, operating restrictions and the economic downturn on its business and financial condition. The Company has reduced capital expenditures and operating expenses where possible, including staffing reductions. Based on these actions and financial assumptions regarding the impact of the COVID-19 pandemic on the Company’s operations, management believes the Company has sufficient liquidity to satisfy its obligations for the next twelve months. As a result of the pandemic, the temporary closure of all of the Company’s properties and the ongoing closure of four of its properties, the Company’s operating results for the year ended December 31, 2020 are not comparable with those of the prior years presented. The Company’s managed property, Graton Resort, located in northern California, also was temporarily closed from March 17, 2020 through June 17, 2020 as a result of the COVID-19 pandemic. The management agreement was originally expected to expire in November 2020 but was extended as a result of the COVID-19 pandemic through February 5, 2021, when the tribe terminated the Company’s management role at the facility. Whether the management agreement provides for an additional extension beyond that date is in dispute. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation Station Holdco and Station LLC are variable interest entities (“VIEs”), of which the Company is the primary beneficiary. The Company controls and operates all of the business and affairs of Station Holdco and Station LLC and conducts all of its operations through these entities. Accordingly, the Company consolidates the financial position and results of operations of Station LLC and its consolidated subsidiaries and Station Holdco, and presents the interests in Station Holdco not owned by Red Rock within noncontrolling interest in the consolidated financial statements. Substantially all of the Company’s assets and liabilities represent the assets and liabilities of Station Holdco and Station LLC, other than assets and liabilities related to income taxes and the tax receivable agreement. Investments in all 50% or less owned affiliated companies are accounted for using the equity method. All significant intercompany accounts and transactions have been eliminated. Noncontrolling Interest in Station Holdco Noncontrolling interest in Station Holdco represents the LLC Units held by certain owners who held such units prior to the Company’s 2016 initial public offering (the “IPO” and such owners, the “Continuing Owners”). Noncontrolling interest is reduced when Continuing Owners exchange their LLC Units, along with an equal number of shares of Class B common stock, for shares of Class A common stock. See Note 10 for additional information. The ownership of the LLC Units is summarized as follows: December 31, 2020 December 31, 2019 Units Ownership % Units Ownership % Red Rock 71,228,168 60.7 % 70,465,422 60.1 % Noncontrolling interest holders 46,085,804 39.3 % 46,827,370 39.9 % Total 117,313,972 100.0 % 117,292,792 100.0 % The Company uses monthly weighted-average LLC Unit ownership to calculate the pretax income or loss and other comprehensive income or loss of Station Holdco attributable to Red Rock and the noncontrolling interest holders. Station Holdco equity attributable to Red Rock and the noncontrolling interest holders is rebalanced, as needed, to reflect LLC Unit ownership at period end. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value Measurements For assets and liabilities accounted for or disclosed at fair value, the Company utilizes the fair value hierarchy established by the accounting guidance for fair value measurements and disclosures to categorize the inputs to valuation techniques used to measure fair value into three levels. The three levels of inputs are as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The accounting guidance for fair value measurements and disclosures also provides the option to measure certain financial assets and liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to measure any financial assets or liabilities at fair value that are not required to be measured at fair value. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value primarily because of the short maturities of these instruments. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and investments with an original maturity of 90 days or less. Restricted Cash Restricted cash consists of reserve funds for the Company’s condominium operations at Palms. Receivables, Net and Credit Risk The Company’s accounts receivable primarily represent receivables from contracts with customers and consist mainly of casino, hotel, ATM, cash advance, retail, management fees and other receivables, which are typically non-interest bearing. Receivables are initially recorded at cost and an allowance for doubtful accounts is maintained to reduce receivables to their carrying amount, which approximates fair value. The allowance is based on an expected loss model and is estimated based on a specific review of customer accounts, historical collection experience, the age of the receivable and other relevant factors. Accounts are written off when management deems the account to be uncollectible, and recoveries of accounts previously written off are recorded when received. At December 31, 2020 and 2019, the allowance for doubtful accounts was $8.2 million and $4.9 million, respectively. Management believes there are no significant concentrations of credit risk. Inventories Inventories primarily represent food and beverage items and retail merchandise which are stated at the lower of cost or net realizable value. Cost is determined on a weighted-average basis. Assets Held for Sale The Company classifies assets as held for sale when management believes that the sale is probable of completion within one year and the asset or asset group meets all of the held for sale criteria in the accounting guidance for impairment and disposal of long-lived assets. Assets held for sale are initially measured at the lower of their carrying amount or fair value less cost to sell. At December 31, 2020 and 2019, assets held for sale represented certain undeveloped land in Las Vegas and Reno. Property and Equipment Property and equipment is initially recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, or for leasehold improvements, the shorter of the estimated useful life of the asset or the lease term, as follows: Buildings and improvements 10 to 45 years Furniture, fixtures and equipment 3 to 10 years Costs of major improvements are capitalized, while costs of normal repairs and maintenance are charged to expense as incurred. Construction in progress is related to the construction or development of property and equipment that has not yet been placed in service for its intended use. Depreciation and amortization of property and equipment commences when the asset is placed in service. When an asset is retired or otherwise disposed, the related cost and accumulated depreciation are removed from the accounts and the gain or loss on disposal is recognized within Write-downs and other charges, net. The Company makes estimates and assumptions when accounting for capital expenditures. The Company’s depreciation expense is highly dependent on the assumptions made for the estimated useful lives of its assets. Useful lives are estimated by the Company based on its experience with similar assets and estimates of the usage of the asset. Whenever events or circumstances occur which change the estimated useful life of an asset, the Company accounts for the change prospectively. Native American Development Costs The Company incurs certain costs associated with development and management agreements with Native American tribes which are reimbursable by such tribes. These costs are capitalized as long-term assets as incurred, and primarily include costs associated with the acquisition of land and development of the casino facilities. The assets are typically transferred to the tribe when the tribe secures financing or the gaming facility is completed. Upon transfer of the assets to the tribe, any remaining carrying amount that has not yet been recovered from the tribe is reclassified to a long-term receivable. The Company earns a return on the costs incurred for the acquisition and development of Native American development projects. Repayment of the advances and the related return typically is funded from the tribe’s financing, from the cash flows of the gaming facility, or both. Due to the uncertainty surrounding the timing and amount of the stated return, the Company recognizes the return on a cash basis. The Company evaluates its Native American development costs for impairment whenever events or changes in circumstances indicate that the carrying amount of a project might not be recoverable, taking into consideration all available information. Among other things, the Company considers the status of the project, any contingencies, the achievement of milestones, any existing or potential litigation, and regulatory matters when evaluating its Native American projects for impairment. If an indicator of impairment exists, the Company compares the estimated future cash flows of the project, on an undiscounted basis, to its carrying amount. If the undiscounted expected future cash flows do not exceed the carrying amount, the asset is written down to its estimated fair value, which typically is estimated based on a discounted future cash flow model or market comparables, when available. The Company estimates the undiscounted future cash flows of a Native American development project based on consideration of all positive and negative evidence about the future cash flow potential of the project including, but not limited to, the likelihood that the project will be successfully completed, the status of required approvals, and the status and timing of the construction of the project, as well as current and projected economic, political, regulatory and competitive conditions that may adversely impact the project’s operating results. Goodwill The Company tests its goodwill for impairment annually as of October 1, and whenever events or circumstances indicate that it is more likely than not that impairment may have occurred. Impairment testing for goodwill is performed at the reporting unit level, and each of the Company’s operating properties is considered a separate reporting unit. When performing its goodwill impairment testing, the Company either conducts a qualitative assessment to determine whether it is more likely than not that the asset is impaired, or elects to bypass this qualitative assessment and perform a quantitative test for impairment. Under the qualitative assessment, the Company considers both positive and negative factors, including macroeconomic conditions, industry events, financial performance and other changes, and makes a determination of whether it is more likely than not that the fair value of goodwill is less than its carrying amount. If, after assessing the qualitative factors, the Company determines it is more likely than not the asset is impaired, it then performs a quantitative test in which the estimated fair value of the reporting unit is compared with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its estimated fair value, an impairment loss is recognized in an amount equal to the excess, limited to the amount of goodwill allocated to the reporting unit. When performing the quantitative test, the Company estimates the fair value of each reporting unit using the expected present value of future cash flows along with value indications based on current valuation multiples of the Company and comparable publicly traded companies. The estimation of fair value involves significant judgment by management. Future cash flow estimates are, by their nature, subjective and actual results may differ materially from such estimates. Cash flow estimates are based on the current regulatory, political and economic climates, recent operating information and projections. Such estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, competition, events affecting various forms of travel and access to the Company’s properties, and other factors. If the Company’s estimates of future cash flows are not met, it may have to record impairment charges in the future. In the first quarter of 2020, the initial economic effects of the COVID-19 pandemic had a significant adverse effect on the Company’s actual and projected operating results. Management determined that those effects represented indicators of potential asset impairment and performed quantitative tests as of March 31, 2020 for all of the Company’s goodwill and indefinite-lived intangible assets. No impairment losses were recognized as a result of the impairment testing. The Company also performed quantitative testing for its annual impairment test for 2020, which resulted in no impairment losses because the fair value of each of the Company’s properties with goodwill exceeded its carrying amount. The cash flow estimates used by management incorporate inherent uncertainties that are difficult to predict in the ongoing economic environment. The timing and trajectory of the expected post-pandemic economic recovery is unknown, and accordingly, management’s estimates and assumptions are likely to change as more information becomes available. Management believes that it has made reasonable estimates and judgments in performing its analysis in light of the unprecedented risks and uncertainties surrounding the COVID-19 pandemic. However, if actual results in future periods differ materially from the Company’s projected results and the related assumptions utilized in management’s analysis, the Company could be required to recognize impairment losses in future periods. Indefinite-lived Intangible Assets The Company’s indefinite-lived intangible assets primarily represent brands. The fair value of the Company’s brands is estimated using a derivation of the income approach to valuation, based on estimated royalties avoided through ownership of the assets, utilizing market indications of fair value. The Company tests its indefinite-lived intangible assets for impairment annually as of October 1, and whenever events or circumstances indicate that it is more likely than not that an asset is impaired. Indefinite-lived intangible assets are not amortized unless it is determined that an asset’s useful life is no longer indefinite. The Company periodically reviews its indefinite-lived assets to determine whether events and circumstances continue to support an indefinite useful life. If an indefinite-lived intangible asset no longer has an indefinite life, the asset is tested for impairment and is subsequently accounted for as a finite-lived intangible asset. Finite-lived Intangible Assets The Company’s finite-lived intangibles primarily include assets related to its customer relationships, condominium rental contracts, certain trademarks and management contracts. The Company amortizes its finite-lived intangible assets over their estimated useful lives using the straight-line method. The Company periodically evaluates the remaining useful lives of its finite-lived intangible assets to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company’s customer relationship intangible assets represent the value associated with its rated casino guests. The condominium rental contract intangible asset represents the value associated with agreements under which the Company provides rental and related services to condominium owners at Palms. The management contract intangible assets represent the value associated with agreements under which the Company provides, or will provide, management services to various casino properties, primarily a Native American casino project that is currently under development. The Company amortizes its management contract intangible assets over their expected useful lives beginning when the property commences operations and management fees are being earned. Impairment of Long-lived Assets The Company reviews the carrying amounts of its long-lived assets, other than goodwill and indefinite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability is evaluated by comparing the estimated future cash flows of the asset, on an undiscounted basis, to its carrying amount. If the undiscounted estimated future cash flows exceed the carrying amount, no impairment is indicated. If the undiscounted estimated future cash flows do not exceed the carrying amount, impairment is measured based on the difference between the asset’s estimated fair value and its carrying amount. To estimate fair values, the Company typically uses market comparables, when available, or a discounted cash flow model. Assets to be disposed of are carried at the lower of their carrying amount or fair value less costs of disposal. The fair value of assets to be disposed of is generally estimated based on comparable asset sales, solicited offers or a discounted cash flow model. The Company’s long-lived asset impairment tests are performed at the reporting unit level. In the first quarter of 2020, the initial economic effects of the COVID-19 pandemic had a significant adverse effect on the Company’s actual and projected operating results. Management determined that those effects represented indicators of potential asset impairment and performed impairment assessments for the Company’s long-lived assets at all of its operating properties. No impairment losses were recognized as a result of the impairment testing. As of December 31, 2020, the Company’s Texas Station, Fiesta Henderson, Fiesta Rancho and Palms properties had not reopened, and management determined the ongoing closures to be an indicator of potential impairment at those respective reporting unit levels. Based on the undiscounted expected future cash flows, no impairment was recorded. However, the Company cannot predict the future impact or duration of the negative effects of the COVID-19 pandemic and as a result, cannot reasonably predict the probability or amount of impairment losses that may be incurred in future periods. The Company will continue to assess the performance of the reopened properties, as well as the recovery of the Las Vegas market and the economy as a whole, before considering whether to reopen some or all of the four properties that have not reopened, and it has no plans to reopen any of these properties in 2021. Land Held for Development At December 31, 2020, the Company owned approximately 315 acres of land comprised of six strategically-located parcels in Las Vegas, each of which is zoned for casino gaming and other uses. Debt Discounts and Debt Issuance Costs Debt discounts and costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense using the effective interest method over the expected term of the related debt agreements. Costs incurred in connection with the issuance of revolving lines of credit are presented in Other assets, net on the Consolidated Balance Sheets. All other capitalized costs incurred in connection with the issuance of long-term debt are presented as a direct reduction of Long-term debt, less current portion on the Consolidated Balance Sheets. Derivative Instruments The Company uses interest rate swaps to hedge its exposure to variability in expected future cash flows related to interest payments. At December 31, 2020 and 2019, none of the Company’s interest rate swaps were designated in cash flow hedging relationships. In accordance with the accounting guidance for derivatives and hedging activities, the Company records all derivatives on the balance sheet at fair value. The fair values of the Company’s derivatives are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including forward interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The Company does not offset derivative asset and liability positions when interest rate swap agreements are held with the same counterparty. As the Company’s derivative instruments are not designated in hedging relationships, the changes in fair value and related pretax gains and losses are presented in Change in fair value of derivative instruments in the Consolidated Statements of Operations in the period in which the change occurs, and the cash flows for these instruments are classified within investing activities in the Consolidated Statements of Cash Flows. Certain of the Company’s interest rate swaps were previously designated in cash flow hedging relationships until their dedesignation in June 2017. Accordingly, cumulative deferred net gains previously recognized in accumulated other comprehensive loss associated with these interest rate swaps were amortized as a reduction of interest expense through July 2020 as the previously hedged interest payments occurred. Leases The Company leases certain equipment, buildings, land and other assets used in its operations. The Company determines whether an arrangement is or contains a lease at inception, and determines the classification of the lease based on facts and circumstances as of the lease commencement date. For leases with an initial term greater than twelve months, the Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For leases with an initial term of twelve months or less, the Company has elected not to recognize ROU assets or lease liabilities. The Company measures its ROU assets and lease liabilities at the lease commencement date based on the present value of lease payments over the lease term. To calculate the present value of lease payments for leases that do not contain an implicit interest rate, the Company uses its incremental borrowing rate based on information available at the lease commencement date. For leases under which the Company has options to extend or terminate the lease, such options are included in the lease term when it is reasonably certain that the Company will exercise the option. The Company includes operating lease ROU assets within Other assets, net on its Consolidated Balance Sheets. Operating lease liabilities are included in Other accrued liabilities and Other long-term liabilities. For arrangements that contain both lease and non-lease components under which the Company is the lessee, the components are not combined for accounting purposes. The Company’s leases do not include any significant residual value guarantees, restrictions or covenants. For operating leases with fixed rental payments or variable rental payments based on an index or rate, the Company recognizes lease expense on a straight-line basis over the lease term. For operating leases with variable payments not based on an index or rate, the Company recognizes the variable lease expense in the period in which the obligation for the payment is incurred. The Company’s variable lease payments not based on an index or rate are primarily related to short-term leases for slot machines under which lease payments are based on a percentage of the revenue earned. The Company leases space within its properties to third-party tenants, primarily food and beverage outlets and movie theaters. The Company also leases space to tenants within commercial and industrial buildings located on certain land held for development. All of the Company’s tenant leases are classified as operating leases and do not contain options for the lessee to purchase the underlying real property. Revenue from tenant leases is included in Other revenues in the Company’s Consolidated Statements of Operations. Lease payments from tenants at the Company’s properties typically include variable rent based on a percentage of the tenant’s net sales, and may also include a fixed base rent amount, which may increase by a rate or index over time. The Company recognizes variable rental income in the period in which the right to receive such rental income is established according to the lease agreements and base rental income on a straight-line basis over the lease term. Lease payments from the Company’s tenants at commercial and industrial buildings are typically based on a fixed rental amount, which may increase by a rate or index over time. Non-lease components within tenant lease agreements, which primarily comprise utilities, property taxes and common area maintenance charges, are included within operating lease income. Comprehensive (Loss) Income Comprehensive (loss) income includes net (loss) income and other comprehensive loss, which includes all other non-owner changes in equity. Components of the Company’s comprehensive (loss) income are reported in the Consolidated Statements of Comprehensive (Loss) Income and Consolidated Statements of Stockholders’ Equity, and accumulated other comprehensive loss is included in stockholders’ equity on the Consolidated Balance Sheets. Revenues The Company’s revenue contracts with customers consist of gaming wagers, sales of food, beverage, hotel rooms and other amenities, and agreements to provide management services. Revenues are recognized when control of the promised goods or services is transferred to the guest, in an amount that reflects the consideration that the Company expects to be entitled to receive in exchange for those goods or services, referred to as the transaction price. Other revenues also include rental income from tenants, which is recognized over the lease term, and contingent rental income, which is recognized when the right to receive such rental income is established according to the lease agreements. Revenue is recognized net of cash sales incentives and discounts and excludes sales and other taxes collected from guests on behalf of governmental authorities. The Company accounts for its gaming and non-gaming contracts on a portfolio basis. This practical expedient is applied because individual customer contracts have similar characteristics, and the Company reasonably expects the effects on the financial statements of applying its revenue recognition policy to the portfolio would not differ materially from applying its policy to the individual contracts. Casino Revenue Casino revenue includes gaming activities such as slot, table game and sports wagering. The transaction price for a gaming wagering contract is the difference between gaming wins and losses, not the total amount wagered. The transaction price is reduced for consideration payable to a guest, such as cash sales incentives and the change in progressive jackpot liabilities. Gaming contracts are typically completed daily based on the outcome of the wagering transaction and include a distinct performance obligation to provide gaming activities. Guests may receive discretionary incentives for complimentary food, beverage, rooms, entertainment and merchandise to encourage additional gaming, or may earn loyalty points based on their slot play. The Company allocates the transaction price to each performance obligation in the gaming wagering contract. The amount allocated to loyalty points earned is based on an estimate of the standalone selling price of the loyalty points, which is determined by the redemption value less an estimate for points not expected to be redeemed. The amount allocated to discretionary complimentaries is the standalone selling price of the underlying goods or services, which is determined using the retail price at which those goods or services would be sold separately in similar transactions. The remaining amount of the transaction price is allocated to wagering activity using the residual approach as the standalone selling price for gaming wagers is highly variable and no set established price exists for gaming wagers. Amounts allocated to wagering are recognized as casino revenue when the result of the wager is determined, and amounts allocated to loyalty points and discretionary complimentaries are recognized as revenue when the goods or services are provided. Non-gaming Revenue Non-gaming revenue include sales of food, beverage, hotel rooms and other amenities such as retail merchandise, bowling, spa services and entertainment. The transaction price is the net amount collected from the guest and includes a distinct performance obligation to provide such goods or services. Non-gaming revenue is recognized when the goods or services are provided to the guest. Guests may also receive discretionary complimentaries that require the transaction price to be allocated to each performance obligation on a relative standalone selling price basis. Non-gaming revenue also includes the portion of the transaction price from gaming or non-gaming contracts allocated to discretionary complimentaries and the value of loyalty points redeemed for food, beverage, room and other amenities. Discretionary complimentaries are classified in the departmental revenue category fulfilling the complimentary with a corresponding reduction in the departmental revenues that provided the complimentary, which is primarily casino revenue. Included in non-gaming revenues are discretionary complimentaries and loyalty point redemptions of $107.1 million, $228.7 million and $206.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Management Fee Revenue Management fee revenue primarily represents fees earned from the Company’s management agreements with Native American tribes. The transaction price for management contracts is the management fee to which the Company is entitled for its management services. The management fee represents variable consideration as it is based on a percentage of net income of the managed property, as defined in the management agreements. The management services are a single performance obligation to provide a series of distinct services over the term of the management agreement. The Company allocates and recognizes the management fee monthly as the management services are performed because there is a consistent measure throughout the contract period that reflects the value to the Native American tribe each month. The Company managed Graton Resort & Casino (“Graton Resort”) on behalf of the Federated Indians of Graton Rancheria through February 5, 2021. For the years ended December 31, 2020, 2019 and 2018, management fees from Graton Resort totaled $77.4 million, $85.6 million and $77.5 million, respectively. Player Rewards Program The Company has a player rewards program (the “Rewards Program”) that allows customers to earn points based on their slot play. Guests may accumulate loyalty points over time that may be redeemed at their discretion under the terms of the Rewards Program. Loyalty points may be redeemed for cash, slot play, food, beverage, rooms, entertainment and merchandise at all of the Company’s Las Vegas area properties. When guests earn points under the Rewards Program, the Company recognizes a liability for future performance obligations. The Rewards Program point liability represents deferred gaming revenue, which is measured at the redemption value of loyalty points earned under the Rewards Program that management ultimately believes will be redeemed. The recognition of the Rewards Program point liability reduces casino revenue. When points are redeemed for cash, the point liability is reduced for the amount of cash paid out. When points are redeemed for slot play, food, beverage, rooms, entertainment and merchandise, revenues are recognized when the goods or services are provided, and such revenues are classified based on the type of goods or services provided with a corresponding reduction to the point liability. The Company’s performance obligation related to its loyalty point liability is generally completed within one year, as a guest’s loyalty point balance is forfeited after six months of inactivity for a local guest and after thirteen months for an out-of-town guest, as defined in the Rewards Program. Loyalty points are generally earned and redeemed continually over time. As a result, the loyalty point liability balance remains relatively constant. The loyalty point liability is presented within Other accrued liabilities on the Consolidated Balance Sheets. Slot Machine Jackpots The |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following (amounts in thousands): December 31, 2020 2019 Land $ 271,603 $ 271,603 Buildings and improvements 3,001,283 2,990,259 Furniture, fixtures and equipment 800,257 801,868 Construction in progress 8,911 28,120 4,082,054 4,091,850 Accumulated depreciation (1,224,081) (1,030,088) Property and equipment, net $ 2,857,973 $ 3,061,762 Depreciation expense was as follows (amounts in thousands): Year Ended December 31, 2020 2019 2018 Depreciation expense $ 223,846 $ 213,642 $ 169,656 At December 31, 2020 and 2019, substantially all of the Company’s property and equipment was pledged as collateral for its long-term debt. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill, net of accumulated impairment losses of $1.2 million, was $195.7 million at December 31, 2020 and 2019. The Company’s goodwill is primarily related to the Las Vegas operations segment. The Company’s intangibles, other than goodwill, consisted of the following (amounts in thousands): December 31, 2020 Estimated useful life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Assets Brands Indefinite $ 77,200 $ — $ 77,200 License rights Indefinite 300 — 300 Customer relationships 15 23,600 (14,726) 8,874 Management contracts 7 - 20 4,000 (1,004) 2,996 Condominium rental contracts 20 9,000 (1,913) 7,087 Trademarks 15 6,000 (1,700) 4,300 Beneficial leases 6 237 (177) 60 Intangible assets 120,337 (19,520) 100,817 Liabilities Below market lease 15 2,195 (615) 1,580 Net intangibles $ 118,142 $ (18,905) $ 99,237 December 31, 2019 Estimated useful life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Assets Brands Indefinite $ 77,200 $ — $ 77,200 License rights Indefinite 300 — 300 Customer relationships 15 23,600 (13,152) 10,448 Management contracts 7 - 20 47,000 (38,780) 8,220 Condominium rental contracts 20 9,000 (1,463) 7,537 Trademarks 15 6,000 (1,300) 4,700 Beneficial leases 6 237 (136) 101 Intangible assets 163,337 (54,831) 108,506 Liabilities Below market leases 15 2,195 (470) 1,725 Net intangibles $ 161,142 $ (54,361) $ 106,781 Amortization expense for intangibles was as follows (amounts in thousands): Year Ended December 31, 2020 2019 2018 Amortization expense $ 7,545 $ 8,569 $ 10,599 Estimated annual amortization expense for intangibles for each of the next five years is as follows (amounts in thousands): Years Ending December 31, 2021 $ 2,426 2022 2,401 2023 2,384 2024 2,384 2025 2,384 |
Native American Development
Native American Development | 12 Months Ended |
Dec. 31, 2020 | |
Development Disclosure [Abstract] | |
Native American Development | Native American Development The Company has development and management agreements with the North Fork Rancheria of Mono Indians (the “Mono”), a federally recognized Native American tribe located near Fresno, California, which were originally entered into in 2003. In August 2014, the Mono and the Company entered into the Second Amended and Restated Development Agreement (the “Development Agreement”) and the Second Amended and Restated Management Agreement. Pursuant to those agreements, the Company will assist the Mono in developing and operating a gaming and entertainment facility (the “North Fork Project”) to be located in Madera County, California. The Company purchased a 305-acre parcel of land adjacent to Highway 99 north of the city of Madera (the “North Fork Site”), which was taken into trust for the benefit of the Mono by the Department of the Interior (“DOI”) in February 2013. As currently contemplated, the North Fork Project is expected to include approximately 2,000 Class III slot machines, approximately 40 table games and several restaurants, and future development costs of the project are expected to be between $300 million and $350 million. Development of the North Fork Project is subject to certain governmental and regulatory approvals, including, without limitation, approval of the Management Agreement by the Chairman of the National Indian Gaming Commission (“NIGC”). Under the terms of the Development Agreement, the Company has agreed to arrange the financing for the ongoing development costs and construction of the facility, and has contributed significant financial support to the North Fork Project. Through December 31, 2020, the Company has paid approximately $37.2 million of reimbursable advances to the Mono, primarily to complete the environmental impact study, purchase the North Fork Site and pay the costs of litigation. The advances are expected to be repaid from the proceeds of the project’s financing or from the Mono’s cash flows from the North Fork Project’s operations; however, there can be no assurance that the advances will be repaid. The carrying amount of the advances was reduced to fair value upon the Company’s adoption of fresh-start reporting in 2011. At December 31, 2020, the carrying amount of the advances was $22.1 million. In accordance with the Company’s accounting policy, accrued interest on the advances will not be recognized in income until the carrying amount of the advances has been recovered. The Company will receive a development fee of 4% of the costs of construction (as defined in the Development Agreement) for its development services, which will be paid upon the commencement of gaming operations at the facility. In March 2018, the Mono submitted a proposed Third Amended and Restated Management Agreement (the “Management Agreement”) to the NIGC. The Management Agreement allows the Company to receive a management fee of 30% of the North Fork Project’s net income. The Management Agreement and the Development Agreement have a term of seven Upon termination or expiration of the Management Agreement and Development Agreement, the Mono will continue to be obligated to repay any unpaid principal and interest on the advances from the Company, as well as certain other amounts that may be due, such as management fees. Amounts due to the Company under the Development Agreement and Management Agreement are secured by substantially all of the assets of the North Fork Project except the North Fork Site. In addition, the Development Agreement and Management Agreement contain waivers of the Mono’s sovereign immunity from suit for the purpose of enforcing the agreements or permitting or compelling arbitration and other remedies. The timing of this type of project is difficult to predict and is dependent upon the receipt of the necessary governmental and regulatory approvals. There can be no assurance as to when, or if, these approvals will be obtained. The Company currently estimates that construction of the North Fork Project may begin in the next three six The Company has evaluated the likelihood that the North Fork Project will be successfully completed and opened, and has concluded that the likelihood of successful completion is in the range of 75% to 85% at December 31, 2020. The Company’s evaluation is based on its consideration of all available positive and negative evidence about the status of the North Fork Project, including, but not limited to, the status of required regulatory approvals, as well as the progress being made toward the achievement of all milestones and the successful resolution of all litigation and contingencies. There can be no assurance that the North Fork Project will be successfully completed or that future events and circumstances will not change the Company’s estimates of the timing, scope, and potential for successful completion or that any such changes will not be material. In addition, there can be no assurance that the Company will recover all of its investment in the North Fork Project even if it is successfully completed and opened for business. The following table summarizes the Company’s evaluation at December 31, 2020 of each of the critical milestones necessary to complete the North Fork Project. Federally recognized as an Indian tribe by the Bureau of Indian Affairs (“BIA”) Yes Date of recognition Federal recognition was terminated in 1966 and restored in 1983. Tribe has possession of or access to usable land upon which the project is to be built The DOI accepted approximately 305 acres of land for the project into trust for the benefit of the Mono in February 2013. Status of obtaining regulatory and governmental approvals: Tribal-state compact A compact was negotiated and signed by the Governor of California and the Mono in August 2012. The California State Assembly and Senate passed Assembly Bill 277 (“AB 277”) which ratified the Compact in May 2013 and June 2013, respectively. Opponents of the North Fork Project qualified a referendum, “Proposition 48,” for a state-wide ballot challenging the legislature’s ratification of the Compact. In November 2014, Proposition 48 failed. The State took the position that the failure of Proposition 48 nullified the ratification of the Compact and, therefore, the Compact did not take effect under California law. In March 2015, the Mono filed suit against the State to obtain a compact with the State or procedures from the Secretary of the Interior under which Class III gaming may be conducted on the North Fork Site. In July 2016, the DOI issued Secretarial procedures (the “Secretarial Procedures”) pursuant to which the Mono may conduct Class III gaming on the North Fork Site. Approval of gaming compact by DOI The Compact was submitted to the DOI in July 2013. In October 2013, notice of the Compact taking effect was published in the Federal Register. The Secretarial Procedures supersede and replace the Compact. Record of decision regarding environmental impact published by BIA In November 2012, the record of decision for the Environmental Impact Statement for the North Fork Project was issued by the BIA. In December 2012, the Notice of Intent to take land into trust was published in the Federal Register. BIA accepting usable land into trust on behalf of the tribe The North Fork Site was accepted into trust in February 2013. Approval of management agreement by NIGC In December 2015, the Mono submitted a Second Amended and Restated Management Agreement, and certain related documents, to the NIGC. In July 2016, the Mono received a deficiency letter from the NIGC seeking additional information concerning the Second Amended and Restated Management Agreement. In March 2018, the Mono submitted the Management Agreement and certain related documents to the NIGC. In June 2018, the Mono received a deficiency letter from the NIGC seeking additional information concerning the Management Agreement. Approval of the Management Agreement by the NIGC is expected to occur following the Mono’s response to the deficiency letter. The Company believes the Management Agreement will be approved because the terms and conditions thereof are consistent with the provisions of the Indian Gaming Regulatory Act (“IGRA”). Gaming licenses: Type The North Fork Project will include the operation of Class II and Class III gaming, which are allowed pursuant to the terms of the Secretarial Procedures and IGRA, following approval of the Management Agreement by the NIGC. Number of gaming devices allowed The Secretarial Procedures allow for the operation of a maximum of 2,000 Class III slot machines at the facility during the first two years of operation and thereafter up to 2,500 Class III slot machines. There is no limit on the number of Class II gaming devices that the Mono can offer. Agreements with local authorities The Mono has entered into memoranda of understanding with the City of Madera, the County of Madera and the Madera Irrigation District under which the Mono agreed to pay one-time and recurring mitigation contributions, subject to certain contingencies. The memoranda of understanding have all been amended to restructure the timing of certain payments due to delays in the development of the North Fork Project. Following is a discussion of certain unresolved legal matters related to the North Fork Project. Stand Up For California! v. Brown. In March 2013, Stand Up for California! and Barbara Leach, a local resident (collectively, the “Stand Up” plaintiffs), filed a complaint for declaratory relief and petition for writ of mandate in California Superior Court for the County of Madera against California Governor Edmund G. Brown, Jr., alleging that Governor Brown violated the California constitutional separation-of-powers doctrine when he concurred in the Secretary of the Interior’s determination that gaming on the North Fork Site would be in the best interest of the Mono and not detrimental to the surrounding community (the “North Fork Determination”). The complaint sought to vacate and set aside the Governor’s concurrence. Plaintiffs’ complaint was subsequently amended to include a challenge to the constitutionality of AB 277. The Mono intervened as a defendant in the lawsuit. In March 2014, the court dismissed plaintiffs’ amended complaint, which dismissal was appealed by plaintiffs. In December 2016, the California Court of Appeal, Fifth Appellate District (the “Fifth District Court of Appeal”) ruled in favor of the Stand Up plaintiffs concluding that Governor Brown exceeded his authority in concurring in the North Fork Determination. The Mono and the State filed petitions in the Supreme Court of California seeking review of the Fifth District Court of Appeal’s decision, which petitions for review were granted in March 2017. The Supreme Court of California deferred additional briefing or other action in this matter pending consideration and disposition of a similar issue in United Auburn Indian Community of Auburn Rancheria v. Brown. On August 31, 2020, the Supreme Court of California announced its decision in the United Auburn case, concluding that Governor Brown’s concurrence in that case did not exceed his authority. On October 14, 2020, the Supreme Court of California transferred the Stand Up case back to the Fifth District Court of Appeal with directions to vacate its December 2016 decision against the Mono and the State and to reconsider the matter in light of the United Auburn decision. The Fifth District Court of Appeal permitted supplemental briefing in connection with its reconsideration of the matter, which briefing was completed on February 10, 2021. Picayune Rancheria of Chukchansi Indians v. Brown . In March 2016, Picayune Rancheria of Chukchansi Indians (“Picayune”) filed a complaint for declaratory relief and petition for writ of mandate in California Superior Court for the County of Madera against Governor Edmund G. Brown, Jr., alleging that the referendum that invalidated the Compact also invalidated Governor Brown’s concurrence with the North Fork Determination. The complaint seeks to vacate and set aside the Governor’s concurrence. In July 2016, the court granted the Mono’s application to intervene and the Mono filed a demurrer seeking to dismiss the case. In November 2016, the district court dismissed Picayune’s complaint, but the court subsequently vacated its ruling based on the December 2016 decision by the Fifth District Court of Appeal in Stand Up for California! v. Brown . The case has been stayed since 2017 pending a decision by the California Supreme Court in Stand Up for California! v. Brown. Stand Up for California! et. al. v. United States Department of the Interior. In November 2016, Stand Up for California! and other plaintiffs filed a complaint in the United States District Court for the Eastern District of California (the “District Court”) alleging that the DOI’s issuance of Secretarial Procedures for the Mono was subject to the National Environmental Policies Act (“NEPA”) and the Clean Air Act (the “CAA”), and violate the Johnson Act. The complaint further alleges violations of the Freedom of Information Act and the Administrative Procedures Act. The DOI filed its answer to the complaint in February 2017 denying plaintiffs’ claims and asserting certain affirmative defenses. A motion to intervene filed by the Mono was granted in March 2017. Plaintiffs subsequently filed a motion to stay the proceedings in May 2017. Briefing on the contested stay request concluded in July 2017 and briefing on cross-motions for summary judgment was concluded in September 2017. On July 18, 2018, the court denied plaintiffs’ motion to stay the proceedings and granted the summary judgment motions of the Mono and the federal defendants. On September 11, 2018, plaintiffs filed a notice of appeal of the District Court decision with the United States Court of Appeals for the Ninth Circuit. The briefing of the issues on appeal was completed on June 13, 2019. The Ninth Circuit heard oral argument on February 11, 2020 and in May 2020 rendered a decision affirming the grant of summary judgment on the Johnson Act issues and reversing and remanding for further proceedings the portion of the summary judgment decision relating to NEPA and the CAA. The briefing on the portion of the case that was reversed and remanded was completed in January 2021 and a decision of the District Court is pending. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consisted of the following (amounts in thousands): December 31, 2020 2019 Contract and customer-related liabilities: Rewards Program liability $ 17,465 $ 21,392 Advance deposits and future wagers 11,854 22,185 Unpaid wagers, outstanding chips and other customer-related liabilities 18,248 19,722 Other accrued liabilities: Accrued payroll and related 41,026 57,438 Accrued gaming and related 20,316 27,490 Construction payables and equipment purchase accruals 3,710 27,462 Operating lease liabilities, current portion 2,936 3,646 Interest rate swaps 11,758 440 Other 18,764 20,785 $ 146,077 $ 200,560 Contract Balances Customer contract liabilities related to future performance obligations consist of the Rewards Program liability, advance deposits on goods or services yet to be provided and wagers for future sporting events. Advance deposits and wagers for future sporting events represent cash payments received from guests that are typically recognized in revenues within one year from the date received. The Company also has other customer-related liabilities that primarily include unpaid wagers and outstanding chips. Unpaid wagers include unredeemed gaming tickets that are exchanged for cash, and outstanding chips represent amounts owed to guests in exchange for gaming chips in their possession that may be redeemed for cash or recognized as revenue. Fluctuations in contract liabilities and other customer-related liabilities are typically a result of normal operating activities. The Company had no material contract assets at December 31, 2020 and 2019, respectively. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Long-term debt consisted of the following (amounts in thousands): December 31, 2020 2019 Term Loan B Facility due February 7, 2027, interest at a margin above LIBOR or base rate (2.50% at December 31, 2020), net of unamortized discount and deferred issuance costs of $29.5 million at December 31, 2020 $ 1,470,944 $ — Term Loan B Facility due June 8, 2023, interest at a margin above LIBOR or base rate (4.30% at December 31, 2019), net of unamortized discount and deferred issuance costs of $33.7 million at December 31, 2019 — 1,766,757 Term Loan A Facility due February 7, 2025, interest at a margin above LIBOR or base rate (1.90% at December 31, 2020), net of unamortized discount and deferred issuance costs of $2.2 million at December 31, 2020 179,712 — Term Loan A Facility due March 8, 2023, interest at a margin above LIBOR or base rate (3.55% at December 31, 2019), net of unamortized discount and deferred issuance costs of $2.5 million at December 31, 2019 — 186,394 Term Loan A Facility, due June 8, 2022, interest at a margin above LIBOR or base rate (3.80% at December 31, 2019), net of unamortized discount and deferred issuance costs of $0.6 million at December 31, 2019 — 52,289 Revolving Credit Facility due February 7, 2025, interest at a margin above LIBOR or base rate — — Revolving Credit Facility, due March 8, 2023, interest at a margin above LIBOR or base rate (3.54% weighted average at December 31, 2019) — 440,000 4.50% Senior Notes due February 15, 2028, net of unamortized discount and deferred issuance costs of $7.6 million at December 31, 2020 683,257 — 5.00% Senior Notes due October 1, 2025, net of deferred issuance costs of $4.1 million and $5.0 million at December 31, 2020 and 2019, respectively 526,260 545,011 Other long-term debt, weighted-average interest of 3.83% at December 31, 2020 and 2019, net of unamortized discount and deferred issuance costs of $0.4 million at December 31, 2020 and 2019 41,834 42,840 Total long-term debt 2,902,007 3,033,291 Current portion of long-term debt (22,844) (33,989) Long-term debt, net $ 2,879,163 $ 2,999,302 Credit Facility Station LLC’s credit facility consists of the Term Loan B Facility, the Term Loan A Facility and the Revolving Credit Facility (collectively, the “Credit Facility”). The Term Loan B Facility bears interest at a rate per annum, at Station LLC’s option, equal to either LIBOR plus 2.25% or base rate plus 1.25%. Amounts outstanding under the Term Loan A Facility and the Revolving Credit Facility bear interest at either LIBOR or base rate, at Station LLC’s option, plus a spread that is dependent on Station LLC’s consolidated total leverage ratio as shown below: Consolidated Total Leverage Ratio Revolving Credit Facility and Term Loan A Facility due LIBOR Base Rate Greater than 4.00 to 1.00 1.75 % 0.75 % Less than or equal to 4.00 to 1.00 1.50 % 0.50 % Station LLC is required to make quarterly principal payments of $3.8 million on the Term Loan B Facility and $2.4 million on the Term Loan A Facility on the last day of each quarter, unless otherwise reduced by prepayments. Station LLC also is required to make mandatory payments of amounts outstanding under the Credit Facility with the proceeds of certain casualty events, debt issuances, asset sales and equity issuances and, depending on its consolidated total leverage ratio, Station LLC is required to apply a portion of its excess cash flow to repay amounts outstanding under the Term Loan B Facility, which would reduce future quarterly principal payments. The Company is not required to make an excess cash flow payment in 2021. During the year ended December 31, 2020, the Company repurchased $17.7 million in aggregate principal amount of its Term Loan B Facility indebtedness and recognized a gain on extinguishment of $0.5 million, which included purchase discounts as well as the write-off of unamortized discount and deferred issuance costs on the retired principal amounts. Borrowings under the Credit Facility are guaranteed by all of Station LLC’s existing and future material restricted subsidiaries and are secured by pledges of all of the equity interests in Station LLC and its material restricted subsidiaries, a security interest in substantially all of the personal property of Station LLC and the subsidiary guarantors, and mortgages on the real property and improvements owned or leased by certain of Station LLC’s subsidiaries. The Credit Facility contains a number of customary covenants that, among other things, restrict, subject to certain exceptions, the ability of Station LLC and the subsidiary guarantors to incur debt; create a lien on collateral; engage in mergers, consolidations or asset dispositions; pay distributions; make investments, loans or advances; engage in certain transactions with affiliates or subsidiaries; or modify their lines of business. The Credit Facility also includes certain financial ratio covenants that Station LLC is required to maintain throughout the term of the Credit Facility and measure as of the end of each quarter. At December 31, 2020, these financial ratio covenants included an interest coverage ratio of not less than 2.50 to 1.00 and a maximum consolidated total leverage ratio, with step-downs over the term of the Credit Facility, ranging from 6.50 to 1.00 at December 31, 2020 to 5.25 to 1.00 at December 31, 2023 and thereafter. A breach of the financial ratio covenants shall only become an event of default under the Term Loan B Facility if the lenders within the Term Loan A Facility and the Revolving Credit Facility take certain affirmative actions after the occurrence of a default of such financial ratio covenants. Management believes the Company was in compliance with all applicable covenants at December 31, 2020. The Company expects to remain in compliance with its debt covenants; however, the Company’s results of operations and ability to comply with its debt covenants may be negatively impacted in the future by COVID-19 and economic conditions resulting from COVID-19 and other factors. At December 31, 2020, Station LLC’s borrowing availability under its Revolving Credit Facility, subject to continued compliance with the terms of the Credit Facility, was $1.0 billion, which was net of $29.4 million in outstanding letters of credit and similar obligations. Credit Facility Amendment On February 7, 2020, the Company amended the Credit Facility to, among other things, (a) extend the maturity date under each of the Term Loan A Facility and the Revolving Credit Facility to February 7, 2025 and extend the maturity date under the Term Loan B Facility to February 7, 2027; (b) increase the outstanding borrowing availability under the Revolving Credit Facility to approximately $1.03 billion; (c) (i) reduce the applicable margin under the Term Loan B Facility to 2.25%, (ii) reduce the LIBOR “floor” under the Term Loan B Facility to 0.25% and (iii) provide for benchmark replacement mechanics in respect of the discontinuation of LIBOR; (d) increase the consolidated total leverage ratios at which the applicable margin under the Term Loan A Facility and the Revolving Credit Facility step-down to 4.00 to 1.00; (e) set the consolidated total leverage ratios for the Term Loan B Facility excess cash flow prepayment percentage step-down to 5.00 to 1.00 for the reduction to 25% and to 4.50 to 1.00 for the reduction to 0%; (f) adjust the application, availability, calculation and sizing of certain covenants; and (g) modify the maximum consolidated total leverage ratio covenant. The Company evaluated the Credit Facility amendment on a lender-by-lender basis and accounted for the majority of the amendment as a debt modification. The Company capitalized $5.1 million in new costs and recognized a loss on debt extinguishment and modification of $12.5 million. 4.50% Senior Notes On February 7, 2020, Station LLC issued $750.0 million in aggregate principal amount of 4.50% Senior Notes due 2028 pursuant to an indenture dated as of February 7, 2020, among Station LLC, the guarantors party thereto and Wells Fargo Bank, National Association, as Trustee. The net proceeds of the sale of the 4.50% Senior Notes were used (i) to repay a portion of the amounts outstanding under the Credit Facility, (ii) to pay fees and costs associated with the offering and (iii) for general corporate purposes. Interest on the 4.50% Senior Notes is paid every six months in arrears on February 15 and August 15, commencing on August 15, 2020. The 4.50% Senior Notes and the guarantees of such notes by certain of Station LLC’s subsidiaries are general senior unsecured obligations. On or after February 15, 2023, Station LLC may redeem all or a portion of the 4.50% Senior Notes at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest and additional interest to the applicable redemption date: Years Beginning February 15, Percentage 2023 102.250 % 2024 101.125 % 2025 and thereafter 100.000 % The indenture governing the 4.50% Senior Notes requires Station LLC to offer to purchase the 4.50% Senior Notes at a purchase price in cash equal to 101.00% of the aggregate principal amount outstanding plus accrued and unpaid interest thereon if Station LLC experiences certain change of control events (as defined in the indenture). The indenture also requires Station LLC to make an offer to repurchase the 4.50% Senior Notes at a purchase price equal to 100.00% of the principal amount of the purchased notes if it has excess net proceeds (as defined in the indenture) from certain asset sales. The indenture governing the 4.50% Senior Notes contains a number of customary covenants that, among other things and subject to certain exceptions, restrict the ability of Station LLC and its restricted subsidiaries to incur or guarantee additional indebtedness; issue disqualified stock or create subordinated indebtedness that is not subordinated to the 4.50% Senior Notes; create liens; engage in mergers, consolidations or asset dispositions; enter into certain transactions with affiliates; engage in lines of business other than its core business and related businesses; or make investments or pay distributions (other than customary tax distributions). These covenants are subject to a number of exceptions and qualifications as set forth in the indenture. The indenture governing the 4.50% Senior Notes also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on such 4.50% Senior Notes to be declared due and payable. During the year ended December 31, 2020, the Company repurchased $59.2 million in aggregate principal amount of its 4.50% Senior Notes. The early debt repurchases resulted in a gain on extinguishment of $10.3 million, which included purchase discounts as well as the write-off of unamortized discount and deferred issuance costs on the retired principal amounts. 5.00% Senior Notes In September 2017, Station LLC issued $550.0 million in aggregate principal amount of 5.00% Senior Notes due October 1, 2025 at par. Interest on the 5.00% Senior Notes is paid every six months in arrears on April 1 and October 1. The 5.00% Senior Notes and the guarantees of such notes by certain of Station LLC’s subsidiaries are general senior unsecured obligations. On or after October 1, 2020, Station LLC may redeem all or a portion of the 5.00% Senior Notes at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest and additional interest to the applicable redemption date: Years Beginning October 1, Percentage 2020 102.50 % 2021 101.25 % 2022 and thereafter 100.00 % The indenture governing the 5.00% Senior Notes requires Station LLC to offer to purchase the 5.00% Senior Notes at a purchase price in cash equal to 101.00% of the aggregate principal amount outstanding plus accrued and unpaid interest thereon if Station LLC experiences certain change of control events (as defined in the indenture). The indenture also requires Station LLC to make an offer to repurchase the 5.00% Senior Notes at a purchase price equal to 100.00% of the principal amount of the purchased notes if it has excess net proceeds (as defined in the indenture) from certain asset sales. The indenture governing the 5.00% Senior Notes contains a number of customary covenants that, among other things and subject to certain exceptions, restrict the ability of Station LLC and its restricted subsidiaries to incur or guarantee additional indebtedness; issue disqualified stock or create subordinated indebtedness that is not subordinated to the 5.00% Senior Notes; create liens; engage in mergers, consolidations or asset dispositions; enter into certain transactions with affiliates; engage in lines of business other than its core business and related businesses; or make investments or pay distributions (other than customary tax distributions). These covenants are subject to a number of exceptions and qualifications as set forth in the indenture. The indenture governing the 5.00% Senior Notes also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on such 5.00% Senior Notes to be declared due and payable. During the year ended December 31, 2020, the Company repurchased $19.7 million in aggregate principal amount of its 5.00% Senior Notes. The early debt repurchases resulted in a gain on extinguishment of $1.9 million, which included purchase discounts as well as the write-off of unamortized discount and deferred issuance costs on the retired principal amounts. On February 22, 2021, the Company completed a partial redemption of $250.0 million in principal amount of 5.00% Senior Notes, which was funded using borrowings under the Revolving Credit Facility and cash on hand. Corporate Office Building Financing In October 2019, the Company paid $57.0 million to purchase its corporate office building, which was previously leased under a sale-leaseback arrangement accounted for as a financing transaction. Accordingly, the related financing obligation, which had a carrying amount of $37.4 million, was extinguished and the Company recognized a $19.6 million loss on debt extinguishment representing the difference between the purchase price and the carrying amount of the financing obligation. In December 2019, a 100%-owned unrestricted subsidiary of Station LLC entered into a $42.8 million term loan agreement with a bank. The term loan bears interest at a fixed rate of 3.80% per annum and matures in December 2025. Principal and interest payments of $0.2 million are payable on a monthly basis until the maturity date, at which time the remaining principal amount will become due. The term loan is secured by the Company’s corporate office building and is not guaranteed by Station LLC or its restricted subsidiaries under the Credit Facility. Principal Maturities As of December 31, 2020, scheduled principal maturities of Station LLC’s long-term debt for each of the next five years and thereafter were as follows (amounts in thousands): Years Ending December 31, 2021 $ 22,844 2022 25,906 2023 25,950 2024 25,995 2025 726,840 Thereafter 2,118,087 2,945,622 Debt discounts and issuance costs (43,615) $ 2,902,007 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company’s objective in using derivative instruments is to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps as a primary part of its cash flow hedging strategy. The Company does not use derivative financial instruments for trading or speculative purposes. The Company’s hedging strategy includes the use of interest rate swaps that are not designated in cash flow hedging relationships. The interest rate swap agreements allow Station LLC to receive variable-rate payments in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. At December 31, 2020, Station LLC’s interest rate swaps had a weighted-average fixed pay rate of 1.94%, a combined notional amount of $1.3 billion and effectively converted $1.3 billion of Station LLC’s variable interest rate debt to a fixed rate of 4.16%. The interest rate swaps will expire July 8, 2021. Station LLC has not posted any collateral related to its interest rate swap agreements; however, Station LLC’s obligations under the interest rate swap agreements are subject to the security and guarantee arrangements applicable to the Credit Facility. The interest rate swap agreements contain a cross-default provision under which Station LLC could be declared in default on its obligation under such agreements if certain conditions of default exist on the Credit Facility. At December 31, 2020, the termination value of Station LLC’s interest rate swaps, including accrued interest, was a net liability of $13.3 million. Had Station LLC been in breach of the provisions of its swap agreements, it could have been required to pay the termination value to settle the obligations. The fair values of Station LLC’s interest rate swaps, exclusive of accrued interest, as well as their classification on the Consolidated Balance Sheets, are presented below (amounts in thousands): December 31, 2020 2019 Interest rate swaps not designated in hedge accounting relationships: Other accrued liabilities $ 11,758 $ 440 Other long-term liabilities — 5,227 Certain of Station LLC’s interest rate swaps were previously designated in cash flow hedging relationships until their dedesignation in June 2017. Accordingly, associated cumulative deferred net gains, which were previously recognized in accumulated other comprehensive loss, were amortized as a reduction of interest expense through July 2020 as the hedged interest payments occurred. During the years ended December 31, 2020, 2019 and 2018, $1.4 million, $2.8 million and $2.9 million, respectively, in deferred net gains were reclassified from accumulated other comprehensive loss to Interest expense, net in the Consolidated Statements of Operations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements At December 31, 2020 and 2019, the Company had no financial assets measured at fair value on a recurring basis. Information about the Company’s liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall, is presented below (amounts in thousands): December 31, 2020 2019 Level of Fair Value Hierarchy Liabilities Interest rate swaps $ 11,758 $ 5,667 Level 2 - Significant unobservable inputs The estimated fair value of the Company’s long-term debt compared with its carrying amount is presented below (amounts in millions): December 31, 2020 2019 Aggregate fair value $ 2,936 $ 3,109 Aggregate carrying amount 2,902 3,033 The estimated fair value of the Company’s long-term debt is based on quoted market prices from various banks for similar instruments, which is considered a Level 2 input under the fair value hierarchy. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company has two classes of common stock. The Company’s Certificate of Incorporation authorizes 500,000,000 shares of Class A common stock, par value $0.01 per share and 100,000,000 shares of Class B common stock, par value $0.00001 per share. The Certificate of Incorporation also authorizes up to 100,000,000 shares of preferred stock, par value of $0.01 per share, none of which have been issued. The holders of the Company’s Class A common stock hold 100% of the economic interests in the Company. Class A Common Stock Voting Rights The holders of Class A common stock are entitled to one vote per share on all matters to be voted upon by the stockholders. Holders of shares of the Company’s Class A common stock and Class B common stock vote together as a single class on all matters presented to the Company’s stockholders for their vote or approval, except as otherwise required by applicable law or the Certificate of Incorporation. Dividend Rights Subject to preferences that may be applicable to any outstanding preferred stock, the holders of Class A common stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by the board of directors out of funds legally available therefor. The declaration, amount and payment of any future dividends on shares of Class A common stock will be at the sole discretion of the board of directors and it may reduce or discontinue entirely the payment of such dividends at any time. The board of directors may take into account general economic and business conditions, the Company’s financial condition and operating results, its available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions and implications on the payment of dividends to stockholders or the payment of distributions by subsidiaries (including Station Holdco) to the Company, and such other factors as the board of directors may deem relevant. As a holding company, Red Rock’s only assets are its equity interest in Station Holdco and its voting interest in Station LLC, other than cash and tax-related assets and liabilities. Red Rock has no operations outside of its management of Station LLC. The Company intends to cause Station Holdco to make distributions in an amount sufficient to cover cash dividends declared, if any. If Station Holdco makes such distributions to Red Rock, the other holders of LLC Units will be entitled to receive proportionate distributions based on their percentage ownership of Station Holdco. During the years ended December 31, 2020 and 2019, the Company declared and paid cash dividends of $0.10 and $0.40, respectively, per share to Class A common stockholders. On May 19, 2020, the Company announced that the board of directors had elected to suspend the payment of dividends for the remainder of 2020. The existing debt agreements of Station LLC, including those governing the Credit Facility, contain restrictive covenants that limit its ability to make cash distributions. Because the only asset of Station Holdco is its interest in Station LLC, the limitations on such distributions will effectively limit the ability of Station Holdco to make distributions to Red Rock, and any financing arrangements that the Company or any of its subsidiaries enter into in the future may contain similar restrictions. Station Holdco is generally prohibited under Delaware law from making a distribution to a member to the extent that, at the time of the distribution, after giving effect to the distribution, liabilities of Station Holdco (with certain exceptions) exceed the fair value of its assets. Subsidiaries of Station Holdco, including Station LLC and its subsidiaries, are generally subject to similar legal limitations on their ability to make distributions to their members or equity holders. Because the Company must pay taxes and make payments under the TRA, amounts ultimately distributed as dividends to holders of Class A common stock may be less than the amounts distributed by Station Holdco to its members on a per LLC Unit basis. Rights upon Liquidation In the event of liquidation, dissolution or winding-up of Red Rock, whether voluntarily or involuntarily, the holders of Class A common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding. Other Rights The holders of Class A common stock have no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the Class A common stock. The rights, preferences and privileges of holders of Class A common stock will be subject to those of the holders of any shares of preferred stock the Company may issue in the future. Equity Repurchase Program In February 2019, the Company’s board of directors approved an equity repurchase program authorizing the repurchase of up to an aggregate of $150 million of its Class A common stock. In February 2021, the Company’s board of directors extended its approval of the equity repurchase program through December 31, 2022. The Company is not obligated to repurchase any shares under this program. Subject to applicable laws and the provisions of any agreements restricting the Company’s ability to do so, repurchases may be made at the Company’s discretion from time to time through open market purchases, negotiated transactions or tender offers, depending on market conditions and other factors. The Company made no repurchases of Class A common stock pursuant to the repurchase program during the years ended December 31, 2020 and 2019. Class B Common Stock Voting Rights The Continuing Owners of Station Holdco hold shares of Class B common stock in an amount equal to the number of LLC Units owned. Although Class B shares have no economic rights, they allow those owners of Station Holdco to exercise voting power at Red Rock, which is the sole managing member of Station Holdco. Each outstanding share of Class B common stock that is held by a holder that, together with its affiliates, owned LLC Units representing at least 30% of the outstanding LLC Units following the IPO and, at the applicable record date, maintains direct or indirect beneficial ownership of at least 10% of the outstanding shares of Class A common stock (determined on an as-exchanged basis assuming that all of the LLC Units were exchanged for Class A common stock) is entitled to ten votes and each other outstanding share of Class B common stock is entitled to one vote. Affiliates of Frank J. Fertitta III and Lorenzo J. Fertitta hold all of the Company’s issued and outstanding shares of Class B common stock that have ten votes per share. As a result, Frank J. Fertitta III and Lorenzo J. Fertitta, together with their affiliates, control any action requiring the general approval of the Company’s stockholders, including the election of the board of directors, the adoption of amendments to the Certificate of Incorporation and bylaws and the approval of any merger or sale of substantially all of the Company’s assets. Each share of Class B common stock is entitled to only one vote automatically upon it being held by a holder that, together with its affiliates, did not own at least 30% of the outstanding LLC Units immediately following the IPO or owns less than 10% of the outstanding shares of Class A common stock (determined on an as-exchanged basis assuming that all of the LLC Units were exchanged for Class A common stock). Holders of LLC Units are entitled at any time to exchange LLC Units, together with an equal number of shares of Class B common stock, for shares of Class A common stock based on an exchange ratio that is equal to or less than one-for-one or for cash, at the Company’s election. The exchange ratio is a fraction, the numerator of which shall be the number of shares of Class A common stock outstanding immediately prior to the applicable exchange and the denominator of which shall be the number of LLC Units owned by Red Rock and its subsidiaries immediately prior to applicable exchange. The initial exchange ratio and the exchange ratio as of December 31, 2020 was one share of Class A common stock for each LLC Unit and share of Class B common stock and is subject to adjustment in the event that the number of outstanding shares of Class A common stock does not equal the number of LLC Units held by Red Rock, including as a result of purchases of shares of Class A common stock by Red Rock with excess cash on hand that does not result in a reduction in the outstanding number of LLC Units held by Red Rock. As members of Station Holdco entitled to ten votes per share exchange LLC Units, the voting power afforded to them by their shares of Class B common stock will be correspondingly reduced. Holders of Class B common stock exchanged 741,000, 57,000 and 380,000 shares of such stock, along with an equal number of LLC Units, for an equal number of shares of Class A common stock during the years ended December 31, 2020, 2019 and 2018, respectively. Automatic Transfer In the event that any outstanding share of Class B common stock shall cease to be held by a holder of an LLC Unit (including a transferee of an LLC Unit), such share shall automatically be transferred to the Company and thereupon shall be retired. Dividend Rights Class B stockholders will not participate in any dividends declared by the board of directors. Rights upon Liquidation In the event of any liquidation, dissolution, or winding-up of Red Rock, whether voluntary or involuntary, the Class B stockholders will not be entitled to receive any of the Company’s assets. Other Rights The holders of Class B common stock have no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the Class B common stock. The rights, preferences and privileges of holders of Class B common stock will be subject to those of the holders of any shares of preferred stock the Company may issue in the future. Preferred Stock Subject to limitations prescribed by Delaware law and the Certificate of Incorporation, the board of directors is authorized to issue preferred stock and to determine the terms and conditions of the preferred stock, including whether the shares of preferred stock will be issued in one or more series, the number of shares to be included in each series and the powers, designations, preferences and rights of the shares. The board of directors is authorized to designate any qualifications, limitations or restrictions on the shares without any further vote or action by the stockholders. The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of the Company. The Company has no current plan to issue any shares of preferred stock. Accumulated Other Comprehensive (Loss) Income The following table presents changes in accumulated other comprehensive (loss) income balances, net of tax and noncontrolling interest (amounts in thousands): Unrealized gain (loss) on interest rate swaps Unrecognized pension liability Total Balances, December 31, 2018 $ 1,279 $ (196) $ 1,083 Unrealized loss arising during the period — (271) (271) Amounts reclassified into income (1,458) — (1,458) Net current-period other comprehensive loss (1,458) (271) (1,729) Exchanges of noncontrolling interests for Class A common stock and rebalancing 5 — 5 Balances, December 31, 2019 (174) (467) (641) Unrealized loss arising during the period — (406) (406) Amounts reclassified into income 178 249 427 Net current-period other comprehensive income (loss) 178 (157) 21 Exchanges of noncontrolling interests for Class A common stock and rebalancing (4) 1 (3) Balances, December 31, 2020 $ — $ (623) $ (623) Net (Loss) Income Attributable to Red Rock Resorts, Inc. and Transfers from (to) Noncontrolling Interests The table below presents the effect on Red Rock Resorts, Inc. stockholders’ equity from net (loss) income and changes in its ownership of Station Holdco (amounts in thousands): Year Ended December 31, 2020 2019 2018 Net (loss) income attributable to Red Rock Resorts, Inc. $ (150,397) $ (3,351) $ 157,541 Transfers from (to) noncontrolling interests: Exchanges of noncontrolling interests for Class A common stock 4,412 370 2,174 Rebalancing of ownership percentage between the Company and noncontrolling interests of Station Holdco (3,918) (8,361) (5,898) Net transfers from (to) noncontrolling interests 494 (7,991) (3,724) Change from net (loss) income attributable to Red Rock Resorts, Inc. and net transfers from (to) noncontrolling interests $ (149,903) $ (11,342) $ 153,817 |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-based Compensation The Red Rock Resorts, Inc. 2016 Amended and Restated Equity Incentive Plan (the “Equity Incentive Plan”) is designed to attract, retain and motivate employees and to align the interests of those individuals with the interests of the Company. The Equity Incentive Plan was approved by the Company’s stockholders and is administered by the compensation committee or other designated committee of the board of directors (the “Committee”). The Equity Incentive Plan authorizes the Committee to grant share-based compensation awards, including stock options, restricted stock, performance awards, stock appreciation rights and certain other stock-based awards, to eligible participants. The Committee may designate plan participants, determine the types of awards to be granted and the number of shares covered by awards, and set the terms and conditions of awards, subject to limitations set forth in the plan. A total of 23.2 million shares of Class A common stock are reserved for issuance under the plan, of which approximately 13.4 million shares were available to be issued at December 31, 2020. Stock Options Stock option awards issued under the plan generally vest over a requisite service period of four years and have a term of seven years from the grant date. The exercise price of stock options awarded under the plan is equal to the fair market value of the Company’s stock at the grant date. A summary of stock option activity is presented below: Shares Weighted-average exercise price Weighted-average remaining contractual life (years) Aggregate intrinsic value (amounts in thousands) Outstanding at January 1, 2020 7,396,507 $ 25.79 Granted — — Exercised (a) (167,091) 20.49 Forfeited or expired (918,759) 26.62 Outstanding at December 31, 2020 6,310,657 $ 25.80 4.4 $ 10,051 Unvested instruments expected to vest 3,354,651 $ 26.32 4.9 $ 4,020 Exercisable at December 31, 2020 2,956,006 $ 25.22 3.8 $ 6,031 ____________________________________ (a) Includes 131,218 options that were not converted into shares due to net share settlements to cover the aggregate exercise price and employee withholding taxes. The following information is provided for stock options awarded under the plan: Year Ended December 31, 2020 2019 2018 Weighted-average grant date fair value $ — $ 7.20 $ 9.25 Total intrinsic value of stock options exercised (amounts in thousands) $ 498 $ 1,517 $ 3,550 The weighted-average assumptions used by the Company to estimate the grant date fair values of stock option awards were as follows: Year Ended December 31, 2020 2019 2018 Expected stock price volatility n/a 32.22% 33.25% Expected term (in years) n/a 4.98 4.87 Risk-free interest rate n/a 2.26% 2.63% Expected dividend yield n/a 1.43% 1.52% ____________________________________ n/a — No stock option awards were granted in 2020. The Company has limited historical data on which to base certain assumptions used in estimating the grant date fair value of stock option awards. Accordingly, the Company incorporates the historical volatility of comparable public companies into its estimate of expected stock price volatility and utilizes the simplified method to estimate the expected term of stock option awards. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant for a period equal to the expected term. The expected dividend yield is based on the current annualized dividend as of the grant date and the average stock price for the year preceding the option grant. At December 31, 2020, unrecognized share-based compensation cost related to stock options was $12.3 million which is expected to be recognized over a weighted-average period of 2.0 years. Restricted Stock Awards Restricted stock awards issued under the plan generally vest over requisite service periods of two Shares Weighted-average grant date fair value Nonvested at January 1, 2020 712,447 $ 26.75 Granted 19,290 27.22 Vested (336,083) 26.15 Forfeited (26,843) 28.41 Nonvested at December 31, 2020 368,811 $ 27.19 The following information is provided for restricted stock awarded under the plan: Year Ended December 31, 2020 2019 2018 Weighted-average grant date fair value per share $ 27.22 $ 27.01 $ 31.95 Total fair value of shares vested (amounts in thousands) $ 8,789 $ 2,101 $ 1,194 At December 31, 2020, unrecognized share-based compensation cost for restricted stock awards was $4.4 million which is expected to be recognized over a weighted-average period of 2.0 years. Share-based compensation is classified in the same financial statement line items as cash compensation. The following table presents the location of share-based compensation expense in the Consolidated Statements of Operations (amounts in thousands): Year Ended December 31, 2020 2019 2018 Operating costs and expenses: Casino $ 321 $ 458 $ 250 Food and beverage (68) 202 36 Room 12 11 — Selling, general and administrative 10,621 16,177 11,003 Total share-based compensation expense $ 10,886 $ 16,848 $ 11,289 |
Write-downs and Other Charges,
Write-downs and Other Charges, Net | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Write-downs and Other Charges, Net | Write-downs and Other Charges, Net Write-downs and other charges, net include various charges related to non-routine transactions, such as net losses on asset disposals, severance, redevelopment and preopening expenses, business innovation and technology enhancements. For the year ended December 31, 2020, write-downs and other charges, net totaled $36.5 million, which included: net losses on asset disposals, including the write-off of assets due to the closure of the Company’s buffets; severance, including insurance benefits through September 2020 for employees who were terminated in connection with the Company’s workforce reduction in May 2020; and asset write-offs related to various technology projects. For the year ended December 31, 2019, write-downs and other charges, net totaled $82.1 million, which included $39.8 million in artist performance agreement termination costs associated with the closure of the nightclub and dayclub at Palms and $25.9 million in Palms redevelopment and preopening expenses, comprising various costs associated with the brand repositioning campaign, as well as preopening related to new restaurants, nightclubs, bars and other amenities. For the year ended December 31, 2018, write-downs and other charges, net were $34.7 million, which included $18.6 million in Palms redevelopment and preopening expenses. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Income Taxes Red Rock is taxed as a corporation and pays corporate federal, state and local taxes on income allocated to it by Station Holdco based upon Red Rock’s economic interest held in Station Holdco. Station Holdco is treated as a pass-through partnership for income tax reporting purposes. Station Holdco’s members, including the Company, are liable for federal, state and local income taxes based on their share of Station Holdco’s pass-through taxable income. Income Tax Expense (Benefit) The components of income tax expense (benefit) were as follows (amounts in thousands): Year Ended December 31, 2020 2019 2018 Current income taxes: Federal $ — $ — $ — State and local — 1 15 Total current income taxes — 1 15 Deferred income taxes: Federal 113,977 (1,721) 23,817 State and local 104 (14) 43 Total deferred income taxes 114,081 (1,735) 23,860 Total income tax expense (benefit) $ 114,081 $ (1,734) $ 23,875 A reconciliation of statutory federal income tax, which is the amount computed by multiplying income before tax by the statutory federal income tax rate, to the Company’s provision for income tax is as follows (amounts in thousands): Year Ended December 31, 2020 2019 2018 Expected U.S. federal income taxes at statutory rate $ (12,676) $ (1,779) $ 51,105 Income attributable to noncontrolling interests 5,071 711 (13,007) State and local income taxes, net of federal benefit 104 (14) 43 Non-deductible expenses 2,330 1,336 1,525 Tax credits (627) (1,555) (1,985) Share-based compensation contribution (909) (762) (1,152) Return to provision 888 (313) 1,037 Other — — 2,874 Valuation allowance 119,900 642 (16,565) Income tax expense (benefit) $ 114,081 $ (1,734) $ 23,875 The Company’s effective tax rate was (188.68)%, 20.47% and 9.81% for the years ended December 31, 2020, 2019 and 2018, respectively. The Company’s effective tax rate as compared to the 21% statutory rate was primarily impacted by a full valuation allowance established against the deferred tax assets. The Company’s effective tax rate includes the net tax expense associated with remeasuring its deferred tax assets, deferred tax liabilities and related valuation allowances to reflect the enacted federal rate, and rate benefit. Other items impacting the effective tax rate include a rate detriment attributable to the fact that Station Holdco operates as a limited liability company which is not subject to federal income tax. Accordingly, the Company does not recognize income tax provision or benefit on the portion of Station Holdco's earnings or loss attributable to noncontrolling interest holders. In addition, state income taxes do not have a significant impact on the Company's effective rate. Station Holdco operates in Nevada and California. Nevada does not impose a state income tax and the Company's activities in California result in minimal state income tax. The components of deferred tax assets and liabilities are as follows (amounts in thousands): December 31, 2020 2019 Deferred tax assets: Tax credit carryforwards $ 5,920 $ 5,293 Net operating loss carryforwards and other attributes 81,233 66,476 Investment in partnership 67,559 76,004 Payable pursuant to tax receivable agreement 5,758 5,268 Total gross deferred tax assets 160,470 153,041 Valuation allowance (160,470) (39,856) Total deferred tax assets, net of valuation allowance $ — $ 113,185 As a result of the Company’s 2016 IPO and certain reorganization transactions, the Company recorded a net deferred tax asset resulting from the outside basis difference of its interest in Station Holdco. The Company also recorded a deferred tax asset for its liability related to payments to be made pursuant to the TRA representing 85% of the tax savings the Company expects to realize from the amortization deductions associated with the step up in the basis of depreciable assets under Section 754 of the Internal Revenue Code. In addition, the Company has recorded deferred tax assets related to tax attributes including net operating losses, interest limitations and tax credits. At December 31, 2020, the Company had a federal net operating loss carryforward of approximately $375.9 million. $101.6 million of the federal net operating loss carryforward will begin to expire in 2037; the remaining $274.3 million have unlimited carryforward but may have usage limitations in a given year. The Company also had $5.9 million of tax credits, which may be carried forward for 20 taxable years, and $10.7 million of pre-tax attributes at December 31, 2020. The Company considers both positive and negative evidence when measuring the need for a valuation allowance. A valuation allowance is not required to the extent that, in management’s judgment, positive evidence exists with a magnitude and duration sufficient to result in a conclusion that it is more likely than not (a likelihood of more than 50%) that the Company’s deferred tax assets will be realized. Historically, the Company recorded a full valuation allowance on the deferred tax asset related only to the newly issued LLC Units in the IPO and reorganization transactions as the deferred tax asset relating to those units is not expected to be realized unless the Company disposes of its investment in Station Holdco. However, as a result of the economic downturn and uncertainty caused by the COVID-19 pandemic on its current operating results and the considerable uncertainty that remains in the future, the Company determined it was more likely than not that the deferred tax assets will not be realized. The Company recognizes changes to the valuation allowance through the provision for income tax or other comprehensive loss, as applicable, and at December 31, 2020 and 2019, the valuation allowance was $160.5 million and $39.9 million, respectively. Uncertain Tax Positions The Company recorded $1.2 million of unrecognized tax benefits as of December 31, 2020. The Company does not currently record interest and penalties for unrecognized tax benefits as any recognition would result in a reduction of its net operating loss or other tax attributes and would not result in an underpayment of tax. Further, the Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record a significant liability for unrecognized tax benefits within the next twelve months. The Company files annual income tax returns for Red Rock and Station Holdco in the U.S. federal jurisdiction and California. Red Rock is currently under examination by the Internal Revenue Service for the 2016 tax year and Station Holdco is under examination for 2016 and 2017 tax years. There are no other ongoing income tax audits as of December 31, 2020. The Company had the following activity for unrecognized tax benefits (amounts in thousands): Year Ended December 31, 2020 2019 2018 Balance at beginning of year $ 1,004 $ — $ — Tax positions related to current year additions 142 519 — Additions for tax positions of prior years 91 485 — Tax positions related to prior years reductions — — — Reductions due to lapse of statute of limitations on tax positions — — — Settlements — — — Balance at end of year $ 1,237 $ 1,004 $ — Tax Receivable Agreement Pursuant to the election under Section 754 of the Internal Revenue Code, the Company continues to expect to obtain an increase in its share of the tax basis in the net assets of Station Holdco when LLC Units are exchanged by Station Holdco’s noncontrolling interest holders and other qualifying transactions. These increases in tax basis may reduce the amounts that the Company would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. The Company expects to realize these tax benefits based on current projections of taxable income. For the years ended December 31, 2020, 2019 and 2018, exchanges of LLC Units and Class B common shares for Class A common stock resulted in increases of $2.3 million, $0.2 million and $2.5 million, respectively, in amounts payable under the TRA liability and net increases of $0.1 million and $2.7 million in deferred tax assets for the years ended December 31, 2019 and 2018, respectively, all of which were recorded through equity. At December 31, 2020 and 2019, the Company’s liability under the TRA with respect to previously consummated transactions was $27.4 million and $25.1 million, respectively, which is due primarily to current and former executives of the Company or members of their respective family group. Of these amounts, $9.0 million was payable to entities related to Frank J. Fertitta III, the Company’s Chairman of the Board and Chief Executive Officer, and Lorenzo J. Fertitta, the Company’s Vice Chairman of the Board and a vice president of the Company. Future payments to the pre-IPO owners in respect of any subsequent exchanges of LLC Units and Class B common shares for Class A common stock would be in addition to these amounts and are expected to be substantial. During the year ended December 31, 2018, the Company paid $28.9 million to pre-IPO owners of Station Holdco in exchange for which the owners assigned to the Company all of their rights under the TRA. The Company’s liability under the TRA was reduced by $119.2 million, and nontaxable income of $90.4 million was recognized as a result of the transactions with Continuing Owners. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans 401(k) Plan The Company has a defined contribution 401(k) plan that covers all employees who meet certain age and length of service requirements and allows an employer contribution of up to 50% of the first 4% of each participating employee’s compensation contributed to the plan. Participants may elect to defer pretax compensation through payroll deductions. These deferrals are regulated under Section 401(k) of the Internal Revenue Code. Effective January 1, 2020, the plan was amended to include a discretionary employer contribution for all employees who meet certain eligibility requirements, including a maximum annual salary threshold. Employer matching and discretionary contribution expense was $8.6 million, $4.2 million and $4.1 million for the years ended December 31, 2020, 2019 and 2018, respectively, which included discretionary contributions of $5.2 million for the year ended December 31, 2020. Palms Pension Plan In connection with the acquisition of Palms, the Company acquired a single-employer defined benefit pension plan (the “Pension Plan”). The Pension Plan provides a cash balance form of pension benefits for eligible Palms employees who met certain age and length of service requirements. There has been a plan curtailment since 2009, and as of the curtailment date, new participants were no longer permitted, and existing participants’ accrual of benefits for future service ceased. The following table provides information about the changes in benefit obligation and the fair value of plan assets (amounts in thousands): Year Ended December 31, 2020 2019 Change in benefit obligation: Benefit obligation (accumulated and projected) at beginning of year $ 14,185 $ 13,357 Interest cost 428 517 Actuarial loss 389 1,390 Benefits paid (515) (1,079) Settlements paid (1,588) — Benefit obligation (accumulated and projected) at end of year 12,899 14,185 Change in fair value of plan assets: Fair value of plan assets at beginning of year 9,526 8,725 Actual return on plan assets 385 1,045 Employer contributions 3,952 835 Benefits paid (515) (1,079) Settlements paid (1,588) — Fair value of plan assets at end of year 11,760 9,526 Funded status at end of year $ (1,139) $ (4,659) The Company’s qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended. The Company expects to make no contribution to the Pension Plan for the year ending December 31, 2021. The table below presents the components of pension expense (amounts in thousands): Year Ended December 31, 2020 2019 2018 Components of net periodic benefit cost: Interest cost $ 428 $ 517 $ 475 Expected return on plan assets (256) (187) (209) Effect of settlement 160 — — Net periodic benefit cost 332 330 266 Other changes recognized in other comprehensive loss: Net loss 260 532 371 Amount recognized due to settlement (160) — — Total recognized in other comprehensive loss 100 532 371 Total recognized in net periodic benefit cost and other comprehensive loss $ 432 $ 862 $ 637 The Company did not incur any service costs or amortize any net gains or losses within the net periodic benefit costs of the Pension Plan during the periods presented. Expense associated with the Pension Plan is classified within Other expense in the Consolidated Statements of Operations. Amounts recognized on the Consolidated Balance Sheets related to the Pension Plan consisted of the following (amounts in thousands): December 31, 2020 2019 Other long-term liabilities $ 1,139 $ 4,659 Net actuarial loss recognized in Accumulated Other Comprehensive Income 1,303 1,203 The following tables present the weighted-average actuarial assumptions used to calculate the net periodic benefit cost and obligation: Year Ended December 31, 2020 2019 2018 Net periodic benefit cost: Discount rate 3.20% 4.15% 3.60% Expected long-term rate of return 5.80% 5.80% 5.80% Rate of compensation increase n/a n/a n/a December 31, 2020 2019 Benefit obligations: Discount rate 2.45% 3.20% Cash balance interest crediting rate 2.04% 2.77% Rate of compensation increase n/a n/a The discount rate used reflects the expected future benefit payments based on plan provisions and participant data as of the beginning of the plan year. The expected future cash flows are discounted by a pension discount yield curve on measurement dates and modified as deemed necessary. The expected return on plan assets uses a weighted-average rate based on the target asset allocation of the plan and capital market assumptions developed with a primary focus on forward-looking valuation models and market indicators. The key inputs for these models are future inflation, economic growth, and interest rate environment. The current investment strategy for the Pension Plan covers a diversified mix of fixed income investments, allocated to correlate to the liabilities of the plan and to mitigate funded status volatility. The return objectives are to satisfy funding obligations when and as prescribed by law and to minimize the risk of large losses primarily through diversification. At December 31, 2020, fixed income investments comprised 100% of the plan’s target and actual asset mix. The Company measures the fair value of the Pension Plan assets using the fair value hierarchy described in Note 2. At December 31, 2020, the fair value of the Pension Plan assets was $11.8 million, which was determined using Level 1 inputs (quoted prices in active markets) under the fair value hierarchy. The fair values of the Pension Plan assets at December 31, 2019 by asset category were as follows (amounts in thousands): Fair Value Measurement at Reporting Date Using Balance at December 31, 2019 Quoted Prices Significant Significant Fixed income $ 4,846 $ 4,822 $ 24 $ — Domestic equity 1,748 150 1,598 — International equity 1,273 1,273 — — Long/short equity 900 900 — — Other 759 310 449 — $ 9,526 $ 7,455 $ 2,071 $ — At December 31, 2020, expected benefit payments for the next ten years were as follows (amounts in thousands): Years Ending December 31, 2021 $ 1,300 2022 830 2023 640 2024 1,000 2025 740 2026 - 2030 3,760 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | (Loss) Earnings Per Share Basic (loss) earnings per share is calculated by dividing net (loss) income attributable to Red Rock by the weighted-average number of shares of Class A common stock outstanding during the period. The calculation of diluted earnings per share gives effect to all potentially dilutive shares, including shares issuable pursuant to outstanding stock options and nonvested restricted shares of Class A common stock, based on the application of the treasury stock method, and outstanding Class B common stock that is exchangeable, along with an equal number of LLC Units, for Class A common stock, based on the application of the if-converted method. Dilutive shares included in the calculation of diluted earnings per share for the year ended December 31, 2018 represent outstanding shares of Class B common stock, nonvested restricted shares of Class A common stock and outstanding stock options. All other potentially dilutive shares have been excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive. A reconciliation of the numerator and denominator used in the calculation of basic and diluted (loss) earnings per share is presented below (amounts in thousands): Year Ended December 31, 2020 2019 2018 Net (loss) income, basic $ (174,543) $ (6,737) $ 219,480 Less: net (loss) income attributable to noncontrolling interests, basic (24,146) (3,386) 61,939 Net (loss) income attributable to Red Rock, basic $ (150,397) $ (3,351) $ 157,541 Effect of dilutive securities — — 48,864 Net (loss) income attributable to Red Rock, diluted $ (150,397) $ (3,351) $ 206,405 Year Ended December 31, 2020 2019 2018 Weighted-average shares of Class A common stock outstanding, basic 70,542 69,565 69,115 Effect of dilutive securities — — 47,744 Weighted-average shares of Class A common stock outstanding, diluted 70,542 69,565 116,859 The calculation of diluted (loss) earnings per share of Class A common stock excluded the following shares that could potentially dilute basic earnings per share in the future because their inclusion would have been antidilutive (amounts in thousands): As of December 31, 2020 2019 2018 Shares issuable in exchange for Class B common stock and LLC Units 46,086 46,827 — Shares issuable upon exercise of stock options 6,311 7,397 1,966 Shares issuable upon vesting of restricted stock 369 712 64 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | Leases Lessee The components of lease expense were as follows (amounts in thousands): Year Ended December 31, 2020 2019 Operating lease cost $ 4,995 $ 5,185 Short-term lease cost 1,895 7,073 Variable lease cost 17,400 28,749 Total lease expense $ 24,290 $ 41,007 For the year ended December 31, 2018, which was not retrospectively adjusted by the Company upon adoption of the new lease accounting standard, expenses incurred under operating lease agreements totaled $20.2 million. Supplemental balance sheet information related to leases under which the Company is the lessee was as follows (amounts in thousands): December 31, 2020 2019 Operating lease right-of-use assets $ 11,483 $ 13,099 Operating lease liabilities: Current portion $ 2,936 $ 3,646 Noncurrent portion 10,950 10,675 Total operating lease liabilities $ 13,886 $ 14,321 Weighted-average remaining lease term - operating leases (years) 36.1 33.5 Weighted-average discount rate - operating leases 5.32 % 5.40 % Supplemental cash flow information related to leases under which the Company is the lessee was as follows (amounts in thousands): Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,387 $ 5,842 Right-of use assets obtained in exchange for new lease liabilities: Operating leases $ 1,336 $ — Future minimum lease payments required under operating leases with initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2020 are as follows (amounts in thousands): Year Ending December 31, 2021 $ 4,222 2022 1,667 2023 871 2024 736 2025 537 Thereafter 42,670 Total future lease payments 50,703 Less imputed interest (36,817) Total operating lease liabilities $ 13,886 |
Leases of Lessor Disclosure | Lessor For the years ended December 31, 2020, 2019 and 2018, revenue from tenant leases was $13.1 million, $24.2 million and $24.3 million, respectively. Revenue from tenant leases is included in Other revenues in the Company’s Consolidated Statements of Operations. At December 31, 2020, the Company’s tenant leases had remaining lease terms ranging from less than one Year Ending December 31, 2021 $ 7,360 2022 5,416 2023 4,072 2024 3,007 2025 662 Thereafter 2,861 $ 23,378 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company and its subsidiaries are defendants in various lawsuits relating to routine matters incidental to their business. No assurance can be provided as to the outcome of any legal matters and litigation inherently involves significant risks. The Company does not believe there are any legal matters outstanding that would have a material impact on its financial condition or results of operations. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | SegmentsThe Company views each of its Las Vegas casino properties and each of its Native American management arrangements as an individual operating segment. The Company aggregates all of its Las Vegas operating segments into one reportable segment because all of its Las Vegas properties offer similar products, cater to the same customer base, have the same regulatory and tax structure, share the same marketing techniques, are directed by a centralized management structure and have similar economic characteristics. The Company also aggregates its Native American management arrangements into one reportable segment. The Company utilizes adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as its primary performance measure. The Company’s segment information and a reconciliation of net income to Adjusted EBITDA are presented below (amounts in thousands): Year Ended December 31, 2020 2019 2018 Net revenues Las Vegas operations: Casino $ 764,255 $ 984,253 $ 940,483 Food and beverage 192,899 481,558 381,197 Room 87,035 192,305 170,824 Other (a) 49,716 100,073 94,894 Management fees 537 571 605 Las Vegas operations net revenues 1,094,442 1,758,760 1,588,003 Native American management: Management fees 81,440 91,074 87,009 Reportable segment net revenues 1,175,882 1,849,834 1,675,012 Corporate and other (a) 6,563 6,700 6,018 Net revenues $ 1,182,445 $ 1,856,534 $ 1,681,030 Net (loss) income $ (174,543) $ (6,737) $ 219,480 Adjustments Depreciation and amortization 231,391 222,211 180,255 Share-based compensation 10,886 16,848 11,289 Write-downs and other charges, net 36,537 82,123 34,650 Tax receivable agreement liability adjustment (15) (97) (90,638) Interest expense, net 128,465 156,679 143,099 (Gain) loss on extinguishment/modification of debt, net (240) 19,939 — Change in fair value of derivative instruments 21,590 19,467 (12,415) Provision (benefit) for income tax 114,081 (1,734) 23,875 Other 333 316 (633) Adjusted EBITDA (b) $ 368,485 $ 509,015 $ 508,962 Adjusted EBITDA Las Vegas operations $ 335,134 $ 472,921 $ 474,503 Native American management 77,440 85,562 80,795 Reportable segment Adjusted EBITDA 412,574 558,483 555,298 Corporate and other (44,089) (49,468) (46,336) Adjusted EBITDA $ 368,485 $ 509,015 $ 508,962 December 31, 2020 2019 Total assets Las Vegas operations $ 3,376,296 $ 3,637,893 Native American management 31,146 31,573 Corporate and other 332,512 444,721 $ 3,739,954 $ 4,114,187 ____________________________________ (a) Includes tenant lease revenue which is accounted for under the lease accounting guidance. See Note 16. (b) Adjusted EBITDA includes net (loss) income plus depreciation and amortization, share-based compensation, write-downs and other charges, net (including net losses on asset disposals, severance, redevelopment and preopening expenses, business innovation and technology enhancements), tax receivable agreement liability adjustment, interest expense, net, (gain) loss on extinguishment/modification of debt, net, change in fair value of derivative instruments, provision (benefit) for income tax and other. Beginning in the first quarter of 2020, the Company changed its methodology for allocating certain corporate technology expenses to its reportable segments. Historically, all technology costs incurred at the corporate level were allocated to the Company’s operating properties on a pro rata basis. Under the new methodology, only technology costs that are directly related to operating properties are allocated to those properties, and expenses associated with corporate technology initiatives remain within corporate expense. Such corporate technology expenses were $14.5 million, $18.1 million and $17.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. The amounts for the prior year periods have been reclassified from the Las Vegas operations segment to Corporate and other within reportable segment Adjusted EBITDA to conform with the current year presentation. The Company’s capital expenditures, which were primarily related to Las Vegas operations, were $58.5 million, $353.3 million and $579.3 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS RED ROCK RESORTS, INC. For the Years Ended December 31, 2020, 2019 and 2018 (in thousands) Balance at Beginning of Year Additions (deductions) Balance at End of Year Description Deferred income tax asset valuation allowance: 2020 $ 39,856 $ 120,614 $ 160,470 2019 39,968 (112) 39,856 2018 57,607 (17,639) 39,968 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of ConsolidationStation Holdco and Station LLC are variable interest entities (“VIEs”), of which the Company is the primary beneficiary. The Company controls and operates all of the business and affairs of Station Holdco and Station LLC and conducts all of its operations through these entities. Accordingly, the Company consolidates the financial position and results of operations of Station LLC and its consolidated subsidiaries and Station Holdco, and presents the interests in Station Holdco not owned by Red Rock within noncontrolling interest in the consolidated financial statements. Substantially all of the Company’s assets and liabilities represent the assets and liabilities of Station Holdco and Station LLC, other than assets and liabilities related to income taxes and the tax receivable agreement. Investments in all 50% or less owned affiliated companies are accounted for using the equity method. All significant intercompany accounts and transactions have been eliminated. |
Income (Loss) Attribution to Noncontrolling Interest | The Company uses monthly weighted-average LLC Unit ownership to calculate the pretax income or loss and other comprehensive income or loss of Station Holdco attributable to Red Rock and the noncontrolling interest holders. Station Holdco equity attributable to Red Rock and the noncontrolling interest holders is rebalanced, as needed, to reflect LLC Unit ownership at period end. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value Measurements | Fair Value Measurements For assets and liabilities accounted for or disclosed at fair value, the Company utilizes the fair value hierarchy established by the accounting guidance for fair value measurements and disclosures to categorize the inputs to valuation techniques used to measure fair value into three levels. The three levels of inputs are as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The accounting guidance for fair value measurements and disclosures also provides the option to measure certain financial assets and liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to measure any financial assets or liabilities at fair value that are not required to be measured at fair value. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe carrying values of cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value primarily because of the short maturities of these instruments. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents consist of cash on hand and investments with an original maturity of 90 days or less. |
Restricted Cash | Restricted Cash Restricted cash consists of reserve funds for the Company’s condominium operations at Palms. |
Receivables, Net and Credit Risk | Receivables, Net and Credit Risk The Company’s accounts receivable primarily represent receivables from contracts with customers and consist mainly of casino, hotel, ATM, cash advance, retail, management fees and other receivables, which are typically non-interest bearing. Receivables are initially recorded at cost and an allowance for doubtful accounts is maintained to reduce receivables to their carrying amount, which approximates fair value. The allowance is based on an expected loss model and is estimated based on a specific review of customer accounts, historical collection experience, the age of the receivable and other relevant factors. |
Inventories | Inventories Inventories primarily represent food and beverage items and retail merchandise which are stated at the lower of cost or net realizable value. Cost is determined on a weighted-average basis. |
Assets Held for Sale | Assets Held for Sale The Company classifies assets as held for sale when management believes that the sale is probable of completion within one year and the asset or asset group meets all of the held for sale criteria in the accounting guidance for impairment and disposal of long-lived assets. Assets held for sale are initially measured at the lower of their carrying amount or fair value less cost to sell. At December 31, 2020 and 2019, assets held for sale represented certain undeveloped land in Las Vegas and Reno. |
Property and Equipment | Property and Equipment Property and equipment is initially recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, or for leasehold improvements, the shorter of the estimated useful life of the asset or the lease term, as follows: Buildings and improvements 10 to 45 years Furniture, fixtures and equipment 3 to 10 years Costs of major improvements are capitalized, while costs of normal repairs and maintenance are charged to expense as incurred. Construction in progress is related to the construction or development of property and equipment that has not yet been placed in service for its intended use. Depreciation and amortization of property and equipment commences when the asset is placed in service. When an asset is retired or otherwise disposed, the related cost and accumulated depreciation are removed from the accounts and the gain or loss on disposal is recognized within Write-downs and other charges, net. The Company makes estimates and assumptions when accounting for capital expenditures. The Company’s depreciation expense is highly dependent on the assumptions made for the estimated useful lives of its assets. Useful lives are estimated by the Company based on its experience with similar assets and estimates of the usage of the asset. Whenever events or circumstances occur which change the estimated useful life of an asset, the Company accounts for the change prospectively. |
Native American Development Costs | Native American Development Costs The Company incurs certain costs associated with development and management agreements with Native American tribes which are reimbursable by such tribes. These costs are capitalized as long-term assets as incurred, and primarily include costs associated with the acquisition of land and development of the casino facilities. The assets are typically transferred to the tribe when the tribe secures financing or the gaming facility is completed. Upon transfer of the assets to the tribe, any remaining carrying amount that has not yet been recovered from the tribe is reclassified to a long-term receivable. The Company earns a return on the costs incurred for the acquisition and development of Native American development projects. Repayment of the advances and the related return typically is funded from the tribe’s financing, from the cash flows of the gaming facility, or both. Due to the uncertainty surrounding the timing and amount of the stated return, the Company recognizes the return on a cash basis. The Company evaluates its Native American development costs for impairment whenever events or changes in circumstances indicate that the carrying amount of a project might not be recoverable, taking into consideration all available information. Among other things, the Company considers the status of the project, any contingencies, the achievement of milestones, any existing or potential litigation, and regulatory matters when evaluating its Native American projects for impairment. If an indicator of impairment exists, the Company compares the estimated future cash flows of the project, on an undiscounted basis, to its carrying amount. If the undiscounted expected future cash flows do not exceed the carrying amount, the asset is written down to its estimated fair value, which typically is estimated based on a discounted future cash flow model or market comparables, when available. The Company estimates the undiscounted future cash flows of a Native American development project based on consideration of all positive and negative evidence about the future cash flow potential of the project including, but not limited to, the likelihood that the project will be successfully completed, the status of required |
Goodwill | Goodwill The Company tests its goodwill for impairment annually as of October 1, and whenever events or circumstances indicate that it is more likely than not that impairment may have occurred. Impairment testing for goodwill is performed at the reporting unit level, and each of the Company’s operating properties is considered a separate reporting unit. When performing its goodwill impairment testing, the Company either conducts a qualitative assessment to determine whether it is more likely than not that the asset is impaired, or elects to bypass this qualitative assessment and perform a quantitative test for impairment. Under the qualitative assessment, the Company considers both positive and negative factors, including macroeconomic conditions, industry events, financial performance and other changes, and makes a determination of whether it is more likely than not that the fair value of goodwill is less than its carrying amount. If, after assessing the qualitative factors, the Company determines it is more likely than not the asset is impaired, it then performs a quantitative test in which the estimated fair value of the reporting unit is compared with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its estimated fair value, an impairment loss is recognized in an amount equal to the excess, limited to the amount of goodwill allocated to the reporting unit. When performing the quantitative test, the Company estimates the fair value of each reporting unit using the expected present value of future cash flows along with value indications based on current valuation multiples of the Company and comparable publicly traded companies. The estimation of fair value involves significant judgment by management. Future cash flow estimates are, by their nature, subjective and actual results may differ materially from such estimates. Cash flow estimates are based on the current regulatory, political and economic climates, recent operating information and projections. Such estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, competition, events affecting various forms of travel and access to the Company’s properties, and other factors. If the Company’s estimates of future cash flows are not met, it may have to record impairment charges in the future. In the first quarter of 2020, the initial economic effects of the COVID-19 pandemic had a significant adverse effect on the Company’s actual and projected operating results. Management determined that those effects represented indicators of potential asset impairment and performed quantitative tests as of March 31, 2020 for all of the Company’s goodwill and indefinite-lived intangible assets. No impairment losses were recognized as a result of the impairment testing. The Company also performed quantitative testing for its annual impairment test for 2020, which resulted in no impairment losses because the fair value of each of the Company’s properties with goodwill exceeded its carrying amount. The cash flow estimates used by management incorporate inherent uncertainties that are difficult to predict in the ongoing economic environment. The timing and trajectory of the expected post-pandemic economic recovery is unknown, and accordingly, management’s estimates and assumptions are likely to change as more information becomes available. Management believes that it has made reasonable estimates and judgments in performing its analysis in light of the unprecedented risks and uncertainties surrounding the COVID-19 pandemic. However, if actual results in future periods differ materially from the Company’s projected results and the related assumptions utilized in management’s analysis, the Company could be required to recognize impairment losses in future periods. |
Indefinite-Lived Intangible Assets | Indefinite-lived Intangible Assets The Company’s indefinite-lived intangible assets primarily represent brands. The fair value of the Company’s brands is estimated using a derivation of the income approach to valuation, based on estimated royalties avoided through ownership of the assets, utilizing market indications of fair value. The Company tests its indefinite-lived intangible assets for impairment annually as of October 1, and whenever events or circumstances indicate that it is more likely than not that an asset is impaired. Indefinite-lived intangible assets are not amortized unless it is determined that an asset’s useful life is no longer indefinite. The Company periodically reviews its indefinite-lived assets to determine whether events and circumstances continue to support an indefinite useful life. If an indefinite-lived intangible asset no longer has an indefinite life, the asset is tested for impairment and is subsequently accounted for as a finite-lived intangible asset. |
Finite-Lived Intangible Assets | Finite-lived Intangible Assets The Company’s finite-lived intangibles primarily include assets related to its customer relationships, condominium rental contracts, certain trademarks and management contracts. The Company amortizes its finite-lived intangible assets over their estimated useful lives using the straight-line method. The Company periodically evaluates the remaining useful lives of its finite-lived intangible assets to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company’s customer relationship intangible assets represent the value associated with its rated casino guests. The condominium rental contract intangible asset represents the value associated with agreements under which the Company provides rental and related services to condominium owners at Palms. The management contract intangible assets represent the value associated with agreements under which the Company provides, or will provide, management services to various casino properties, primarily a Native American casino project that is currently under development. The Company amortizes its management contract intangible assets over their expected useful lives beginning when the property commences operations and management fees are being earned. |
Impairment of Long-Lived Assets | Impairment of Long-lived Assets The Company reviews the carrying amounts of its long-lived assets, other than goodwill and indefinite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability is evaluated by comparing the estimated future cash flows of the asset, on an undiscounted basis, to its carrying amount. If the undiscounted estimated future cash flows exceed the carrying amount, no impairment is indicated. If the undiscounted estimated future cash flows do not exceed the carrying amount, impairment is measured based on the difference between the asset’s estimated fair value and its carrying amount. To estimate fair values, the Company typically uses market comparables, when available, or a discounted cash flow model. Assets to be disposed of are carried at the lower of their carrying amount or fair value less costs of disposal. The fair value of assets to be disposed of is generally estimated based on comparable asset sales, solicited offers or a discounted cash flow model. The Company’s long-lived asset impairment tests are performed at the reporting unit level. In the first quarter of 2020, the initial economic effects of the COVID-19 pandemic had a significant adverse effect on the Company’s actual and projected operating results. Management determined that those effects represented indicators of potential asset impairment and performed impairment assessments for the Company’s long-lived assets at all of its operating properties. No impairment losses were recognized as a result of the impairment testing. As of December 31, 2020, the Company’s Texas Station, Fiesta Henderson, Fiesta Rancho and Palms properties had not reopened, and management determined the ongoing closures to be an indicator of potential impairment at those respective reporting unit levels. Based on the undiscounted expected future cash flows, no impairment was recorded. However, the Company cannot predict the future impact or duration of the negative effects of the COVID-19 pandemic and as a result, cannot reasonably predict the probability or amount of impairment losses that may be incurred in future periods. The Company will continue to assess the performance of the reopened properties, as well as the recovery of the Las Vegas market and the economy as a whole, before considering whether to reopen some or all of the four properties that have not reopened, and it has no plans to reopen any of these properties in 2021. |
Land Held for Development | Land Held for DevelopmentAt December 31, 2020, the Company owned approximately 315 acres of land comprised of six strategically-located parcels in Las Vegas, each of which is zoned for casino gaming and other uses. |
Debt Discounts and Debt Issuance Costs | Debt Discounts and Debt Issuance Costs Debt discounts and costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense using the effective interest method over the expected term of the related debt agreements. Costs incurred in connection with the issuance of revolving lines of credit are presented in Other assets, net on the Consolidated Balance Sheets. All other capitalized costs incurred in connection with the issuance of long-term debt are presented as a direct reduction of Long-term debt, less current portion on the Consolidated Balance Sheets. |
Derivative Instruments | Derivative Instruments The Company uses interest rate swaps to hedge its exposure to variability in expected future cash flows related to interest payments. At December 31, 2020 and 2019, none of the Company’s interest rate swaps were designated in cash flow hedging relationships. In accordance with the accounting guidance for derivatives and hedging activities, the Company records all derivatives on the balance sheet at fair value. The fair values of the Company’s derivatives are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including forward interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The |
Lessee, Leases | Leases The Company leases certain equipment, buildings, land and other assets used in its operations. The Company determines whether an arrangement is or contains a lease at inception, and determines the classification of the lease based on facts and circumstances as of the lease commencement date. For leases with an initial term greater than twelve months, the Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For leases with an initial term of twelve months or less, the Company has elected not to recognize ROU assets or lease liabilities. The Company measures its ROU assets and lease liabilities at the lease commencement date based on the present value of lease payments over the lease term. To calculate the present value of lease payments for leases that do not contain an implicit interest rate, the Company uses its incremental borrowing rate based on information available at the lease commencement date. For leases under which the Company has options to extend or terminate the lease, such options are included in the lease term when it is reasonably certain that the Company will exercise the option. The Company includes operating lease ROU assets within Other assets, net on its Consolidated Balance Sheets. Operating lease liabilities are included in Other accrued liabilities and Other long-term liabilities. For arrangements that contain both lease and non-lease components under which the Company is the lessee, the components are not combined for accounting purposes. The Company’s leases do not include any significant residual value guarantees, restrictions or covenants. For operating leases with fixed rental payments or variable rental payments based on an index or rate, the Company recognizes lease expense on a straight-line basis over the lease term. For operating leases with variable payments not based on an index or rate, the Company recognizes the variable lease expense in the period in which the obligation for the payment is incurred. The Company’s variable lease payments not based on an index or rate are primarily related to short-term leases for slot machines under which lease payments are based on a percentage of the revenue earned. |
Lessor, Leases | The Company leases space within its properties to third-party tenants, primarily food and beverage outlets and movie theaters. The Company also leases space to tenants within commercial and industrial buildings located on certain land held for development. All of the Company’s tenant leases are classified as operating leases and do not contain options for the lessee to purchase the underlying real property. Revenue from tenant leases is included in Other revenues in the Company’s Consolidated Statements of Operations.Lease payments from tenants at the Company’s properties typically include variable rent based on a percentage of the tenant’s net sales, and may also include a fixed base rent amount, which may increase by a rate or index over time. The Company recognizes variable rental income in the period in which the right to receive such rental income is established according to the lease agreements and base rental income on a straight-line basis over the lease term. Lease payments from the Company’s tenants at commercial and industrial buildings are typically based on a fixed rental amount, which may increase by a rate or index over time. Non-lease components within tenant lease agreements, which primarily comprise utilities, property taxes and common area maintenance charges, are included within operating lease income. |
Comprehensive Income | Comprehensive (Loss) Income Comprehensive (loss) income includes net (loss) income and other comprehensive loss, which includes all other non-owner changes in equity. Components of the Company’s comprehensive (loss) income are reported in the Consolidated Statements of Comprehensive (Loss) Income and Consolidated Statements of Stockholders’ Equity, and accumulated other comprehensive loss is included in stockholders’ equity on the Consolidated Balance Sheets. |
Revenues | Revenues The Company’s revenue contracts with customers consist of gaming wagers, sales of food, beverage, hotel rooms and other amenities, and agreements to provide management services. Revenues are recognized when control of the promised goods or services is transferred to the guest, in an amount that reflects the consideration that the Company expects to be entitled to receive in exchange for those goods or services, referred to as the transaction price. Other revenues also include rental income from tenants, which is recognized over the lease term, and contingent rental income, which is recognized when the right to receive such rental income is established according to the lease agreements. Revenue is recognized net of cash sales incentives and discounts and excludes sales and other taxes collected from guests on behalf of governmental authorities. The Company accounts for its gaming and non-gaming contracts on a portfolio basis. This practical expedient is applied because individual customer contracts have similar characteristics, and the Company reasonably expects the effects on the financial statements of applying its revenue recognition policy to the portfolio would not differ materially from applying its policy to the individual contracts. Casino Revenue Casino revenue includes gaming activities such as slot, table game and sports wagering. The transaction price for a gaming wagering contract is the difference between gaming wins and losses, not the total amount wagered. The transaction price is reduced for consideration payable to a guest, such as cash sales incentives and the change in progressive jackpot liabilities. Gaming contracts are typically completed daily based on the outcome of the wagering transaction and include a distinct performance obligation to provide gaming activities. Guests may receive discretionary incentives for complimentary food, beverage, rooms, entertainment and merchandise to encourage additional gaming, or may earn loyalty points based on their slot play. The Company allocates the transaction price to each performance obligation in the gaming wagering contract. The amount allocated to loyalty points earned is based on an estimate of the standalone selling price of the loyalty points, which is determined by the redemption value less an estimate for points not expected to be redeemed. The amount allocated to discretionary complimentaries is the standalone selling price of the underlying goods or services, which is determined using the retail price at which those goods or services would be sold separately in similar transactions. The remaining amount of the transaction price is allocated to wagering activity using the residual approach as the standalone selling price for gaming wagers is highly variable and no set established price exists for gaming wagers. Amounts allocated to wagering are recognized as casino revenue when the result of the wager is determined, and amounts allocated to loyalty points and discretionary complimentaries are recognized as revenue when the goods or services are provided. Non-gaming Revenue Non-gaming revenue include sales of food, beverage, hotel rooms and other amenities such as retail merchandise, bowling, spa services and entertainment. The transaction price is the net amount collected from the guest and includes a distinct performance obligation to provide such goods or services. Non-gaming revenue is recognized when the goods or services are provided to the guest. Guests may also receive discretionary complimentaries that require the transaction price to be allocated to each performance obligation on a relative standalone selling price basis. Non-gaming revenue also includes the portion of the transaction price from gaming or non-gaming contracts allocated to discretionary complimentaries and the value of loyalty points redeemed for food, beverage, room and other amenities. Discretionary complimentaries are classified in the departmental revenue category fulfilling the complimentary with a corresponding reduction in the departmental revenues that provided the complimentary, which is primarily casino revenue. Included in non-gaming revenues are discretionary complimentaries and loyalty point redemptions of $107.1 million, $228.7 million and $206.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Management Fee Revenue Management fee revenue primarily represents fees earned from the Company’s management agreements with Native American tribes. The transaction price for management contracts is the management fee to which the Company is entitled for its management services. The management fee represents variable consideration as it is based on a percentage of net income of the managed property, as defined in the management agreements. The management services are a single performance obligation to provide a series of distinct services over the term of the management agreement. The Company allocates and recognizes the management fee monthly as the management services are performed because there is a consistent measure throughout the contract period that reflects the value to the Native American tribe each month. The Company managed Graton Resort & Casino (“Graton Resort”) on behalf of the Federated Indians of Graton Rancheria through February 5, 2021. For the years ended December 31, 2020, 2019 and 2018, management fees from Graton Resort totaled $77.4 million, $85.6 million and $77.5 million, respectively. |
Player Rewards Program | Player Rewards Program The Company has a player rewards program (the “Rewards Program”) that allows customers to earn points based on their slot play. Guests may accumulate loyalty points over time that may be redeemed at their discretion under the terms of the Rewards Program. Loyalty points may be redeemed for cash, slot play, food, beverage, rooms, entertainment and merchandise at all of the Company’s Las Vegas area properties. When guests earn points under the Rewards Program, the Company recognizes a liability for future performance obligations. The Rewards Program point liability represents deferred gaming revenue, which is measured at the redemption value of loyalty points earned under the Rewards Program that management ultimately believes will be redeemed. The recognition of the Rewards Program point liability reduces casino revenue. When points are redeemed for cash, the point liability is reduced for the amount of cash paid out. When points are redeemed for slot play, food, beverage, rooms, entertainment and merchandise, revenues are recognized when the goods or services are provided, and such revenues are classified based on the type of goods or services provided with a corresponding reduction to the point liability. The Company’s performance obligation related to its loyalty point liability is generally completed within one year, as a guest’s loyalty point balance is forfeited after six months of inactivity for a local guest and after thirteen months for an out-of-town guest, as defined in the Rewards Program. Loyalty points are generally earned and redeemed continually over time. As a result, the loyalty point liability balance remains relatively constant. The loyalty point liability is presented within Other accrued liabilities on the Consolidated Balance Sheets. |
Slot Machine Jackpots | Slot Machine Jackpots The Company does not accrue base jackpots if it is not legally obligated to pay the jackpot. A jackpot liability is accrued with a related reduction in casino revenue when the Company is obligated to pay the jackpot, such as the incremental amount in excess of the base jackpot on a progressive game. |
Gaming Taxes | Gaming TaxesThe Company is assessed taxes based on gross gaming revenue, subject to applicable jurisdictional adjustments. Gaming taxes are included in Casino costs and expenses in the Consolidated Statements of Operations. |
Share-based Compensation | Share-based Compensation The Company measures its share-based compensation cost at the grant date based on the fair value of the award, and recognizes the cost over the requisite service period. The fair value of stock options is estimated at the grant date using the Black-Scholes option pricing model. The fair value of restricted stock is based on the closing share price of the Company’s stock on the grant date. The Company uses the straight-line method to recognize compensation cost for share-based awards with graded service-based vesting, and cumulative compensation cost recognized to date at least equals the grant-date fair value of the vested portion of the awards. Forfeitures are accounted for as they occur. |
Advertising | AdvertisingThe Company expenses advertising costs the first time the advertising takes place. Advertising expense is primarily included in selling, general and administrative expense in the Consolidated Statements of Operations. |
Income Taxes | Income Taxes Red Rock is taxed as a corporation and pays corporate federal, state and local taxes on income allocated to it by Station Holdco. Station Holdco operates as a partnership for federal, state and local tax reporting and holds 100% of the economic interests in Station LLC. The members of Station Holdco are liable for any income taxes resulting from income allocated to them by Station Holdco as a pass-through entity. The Company recognizes deferred tax assets and liabilities based on the differences between the book value of assets and liabilities for financial reporting purposes and those amounts applicable for income tax purposes using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company classifies all deferred tax assets and liabilities as noncurrent. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period in which the enactment date occurs. Deferred tax assets represent future tax deductions or credits. Realization of the deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character in either the carryback or carryforward period. Each reporting period, the Company analyzes the likelihood that its deferred tax assets will be realized. A valuation allowance is recorded if, based on the weight of all available positive and negative evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. On an annual basis, the Company performs a comprehensive analysis of all forms of positive and negative evidence based on year end results. During each interim period, the Company updates its annual analysis for significant changes in the positive and negative evidence. The Company records uncertain tax positions on the basis of a two-step process in which (1) the Company determines whether it is more likely than not the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions meeting the more likely than not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record a significant liability for unrecognized tax benefits within the next twelve months. The Company will recognize interest and penalties related to income taxes, if any, within the provision for income taxes. The Company has incurred no interest or penalties related to income taxes in any of the periods presented. |
Tax Receivable Agreement | Tax Receivable Agreement In connection with the IPO, the Company entered into a tax receivable agreement (“TRA”) with certain pre-IPO owners of Station Holdco. In the event that such parties exchange any or all of their LLC Units for Class A common stock, the TRA requires the Company to make payments to such parties for 85% of the tax benefits realized by the Company by such exchange. The annual tax benefits are computed by calculating the income taxes due, including such tax benefits, and the income taxes due without such benefits. When an exchange transaction occurs, the Company initially recognizes the related TRA liability through a charge to equity, and any subsequent adjustments to the liability are recorded through the statements of operations. As a result of exchanges of LLC Units for Class A common stock and purchases by the Company of LLC Units from holders of such units, the Company is entitled to a proportionate share of the existing tax basis of the assets of Station Holdco at the time of such exchanges or purchases. In addition, such exchanges or purchases of LLC Units are expected to result in increases in the tax basis of the assets of Station Holdco that otherwise would not have been available. These increases in tax basis may reduce the amount of tax that the Company would otherwise be required to pay in the future. These increases in tax basis may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. The timing and amount of aggregate payments due under the TRA may vary based on a number of factors, including the amount and timing of the taxable income the Company generates each year, the tax rate then applicable and amortizable basis. If the Company does not generate sufficient taxable income in the aggregate over the term of the TRA to utilize the tax benefits, it would not be required to make the related TRA payments. The Company will only recognize a liability for TRA payments if management determines it is probable that it will generate sufficient future taxable income over the term of the TRA to utilize the related tax benefits. If management determines in the future that the Company will not be able to fully utilize all or part of the related tax benefits, it would derecognize the portion of the liability related to the benefits not expected to be utilized. Estimating future taxable income is inherently uncertain and requires judgment. In projecting future taxable income, the Company considers its historical results and incorporates certain assumptions, including revenue growth and operating margins, among others. The payment obligations under the TRA are Red Rock’s obligations and are not obligations of Station Holdco or Station LLC. Payments are generally due within a specified period of time following the filing of the Company’s annual tax return and interest on such payments will accrue from the original due date (without extensions) of the income tax return until the date paid. Payments not made within the required period after the filing of the income tax return generally accrue interest at a rate of LIBOR plus 5.00%. The TRA will remain in effect until all such tax benefits have been utilized or expired unless the Company exercises its right to terminate the TRA. The TRA will also terminate if the Company breaches its obligations under the TRA or upon certain mergers, asset sales or other forms of business combinations, or other changes of control. If the Company exercises its right to terminate the TRA, or if the TRA is terminated early in accordance with its terms, the Company’s payment obligations would be accelerated based upon certain assumptions, including the assumption that it would have sufficient future taxable income to utilize such tax benefits, and may substantially exceed the actual benefits, if any, the Company realizes in respect of the tax attributes subject to the TRA. Additionally, the Company estimates the amount of TRA payments expected to be paid within the next twelve months and classifies this amount within current liabilities on its Consolidated Balance Sheets. This determination is based on management’s estimate of taxable income for the next fiscal year. To the extent the Company’s estimate differs from actual results, it may be required to reclassify portions of the liability under the TRA between current and non-current. |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income attributable to Red Rock by the weighted-average number of Class A shares outstanding during the period. Diluted EPS is computed by dividing net income attributable to Red Rock, including the impact of potentially dilutive securities, by the weighted-average number of Class A shares outstanding during the period, including the number of Class A shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include the outstanding Class B common stock, outstanding stock options and unvested restricted stock. The Company uses the “if-converted” method to determine the potentially dilutive effect of its Class B common stock, and the treasury stock method to determine the potentially dilutive effect of outstanding stock options and unvested restricted stock. |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued temporary accounting guidance to ease the accounting effects of reform to the London Interbank Offered Rate (“LIBOR”) and other reference rates. The guidance contains optional expedients and exceptions that apply to accounting for contract modifications, hedging relationships, and other transactions affected by reference rate reform. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022 and may be applied from the beginning of an interim period or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020. The Company adopted this guidance beginning in the first quarter of 2020 and elected to continue to assert probability of its hedging relationships regardless of any potential modifications in terms due to reference rate reform. The adoption did not have an impact on the Company’s financial position or results of operations. In June 2016, the FASB issued amended accounting guidance for measurement of credit losses on financial instruments. The amended accounting guidance replaces the incurred loss impairment model with a forward-looking expected loss model, and is applicable to most financial assets, including trade receivables other than those arising from operating leases. The Company adopted this guidance on January 1, 2020 using a modified retrospective transition method. The adoption did not have a material impact on the Company’s financial position or results of operations. Recently Issued Accounting Standards Not Yet Adopted In December 2019, the FASB issued amended accounting guidance to simplify the accounting for income taxes. The amendment eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The amendment also simplifies other aspects of the accounting for income taxes. The amended guidance is effective for fiscal years beginning after December 15, 2020 and interim periods within those years, and early adoption is permitted. The Company will adopt this guidance in the first quarter of 2021. The Company is currently evaluating the impact this guidance will have on its financial position and results of operations. |
Write-downs and Other Charges_2
Write-downs and Other Charges, Net (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Write-downs and Other Charges, Net | Write-downs and Other Charges, NetWrite-downs and other charges, net include various charges related to non-routine transactions, such as net losses on asset disposals, severance, redevelopment and preopening expenses, business innovation and technology enhancements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Noncontrolling Interest [Table Text Block] | The ownership of the LLC Units is summarized as follows: December 31, 2020 December 31, 2019 Units Ownership % Units Ownership % Red Rock 71,228,168 60.7 % 70,465,422 60.1 % Noncontrolling interest holders 46,085,804 39.3 % 46,827,370 39.9 % Total 117,313,972 100.0 % 117,292,792 100.0 % |
Schedule of Property and Equipment Useful Lives [Table Text Block] | Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, or for leasehold improvements, the shorter of the estimated useful life of the asset or the lease term, as follows: Buildings and improvements 10 to 45 years Furniture, fixtures and equipment 3 to 10 years |
Schedule of Gaming Tax Expense [Table Text Block] | Gaming tax expense was as follows (amounts in thousands): Year Ended December 31, 2020 2019 2018 Gaming tax expense $ 56,253 $ 78,427 $ 74,501 |
Schedule of Advertising Expense [Table Text Block] | Advertising expense was as follows (amounts in thousands): Year Ended December 31, 2020 2019 2018 Advertising expense $ 10,205 $ 31,678 $ 24,302 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following (amounts in thousands): December 31, 2020 2019 Land $ 271,603 $ 271,603 Buildings and improvements 3,001,283 2,990,259 Furniture, fixtures and equipment 800,257 801,868 Construction in progress 8,911 28,120 4,082,054 4,091,850 Accumulated depreciation (1,224,081) (1,030,088) Property and equipment, net $ 2,857,973 $ 3,061,762 |
Schedule of Depreciation Expense | Depreciation expense was as follows (amounts in thousands): Year Ended December 31, 2020 2019 2018 Depreciation expense $ 223,846 $ 213,642 $ 169,656 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Abstract] | |
Schedule of Indefinite-Lived and Finite-Lived Intangible Assets [Table Text Block] | The Company’s intangibles, other than goodwill, consisted of the following (amounts in thousands): December 31, 2020 Estimated useful life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Assets Brands Indefinite $ 77,200 $ — $ 77,200 License rights Indefinite 300 — 300 Customer relationships 15 23,600 (14,726) 8,874 Management contracts 7 - 20 4,000 (1,004) 2,996 Condominium rental contracts 20 9,000 (1,913) 7,087 Trademarks 15 6,000 (1,700) 4,300 Beneficial leases 6 237 (177) 60 Intangible assets 120,337 (19,520) 100,817 Liabilities Below market lease 15 2,195 (615) 1,580 Net intangibles $ 118,142 $ (18,905) $ 99,237 December 31, 2019 Estimated useful life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Assets Brands Indefinite $ 77,200 $ — $ 77,200 License rights Indefinite 300 — 300 Customer relationships 15 23,600 (13,152) 10,448 Management contracts 7 - 20 47,000 (38,780) 8,220 Condominium rental contracts 20 9,000 (1,463) 7,537 Trademarks 15 6,000 (1,300) 4,700 Beneficial leases 6 237 (136) 101 Intangible assets 163,337 (54,831) 108,506 Liabilities Below market leases 15 2,195 (470) 1,725 Net intangibles $ 161,142 $ (54,361) $ 106,781 |
Schedule of Finite-Lived Intangible Assets, Amortization Expense [Table Text Block] | Amortization expense for intangibles was as follows (amounts in thousands): Year Ended December 31, 2020 2019 2018 Amortization expense $ 7,545 $ 8,569 $ 10,599 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated annual amortization expense for intangibles for each of the next five years is as follows (amounts in thousands): Years Ending December 31, 2021 $ 2,426 2022 2,401 2023 2,384 2024 2,384 2025 2,384 |
Native American Development (Ta
Native American Development (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
North Fork Rancheria of Mono Indians (Mono) [Member] | |
Schedule of Development and Management Agreements | The following table summarizes the Company’s evaluation at December 31, 2020 of each of the critical milestones necessary to complete the North Fork Project. Federally recognized as an Indian tribe by the Bureau of Indian Affairs (“BIA”) Yes Date of recognition Federal recognition was terminated in 1966 and restored in 1983. Tribe has possession of or access to usable land upon which the project is to be built The DOI accepted approximately 305 acres of land for the project into trust for the benefit of the Mono in February 2013. Status of obtaining regulatory and governmental approvals: Tribal-state compact A compact was negotiated and signed by the Governor of California and the Mono in August 2012. The California State Assembly and Senate passed Assembly Bill 277 (“AB 277”) which ratified the Compact in May 2013 and June 2013, respectively. Opponents of the North Fork Project qualified a referendum, “Proposition 48,” for a state-wide ballot challenging the legislature’s ratification of the Compact. In November 2014, Proposition 48 failed. The State took the position that the failure of Proposition 48 nullified the ratification of the Compact and, therefore, the Compact did not take effect under California law. In March 2015, the Mono filed suit against the State to obtain a compact with the State or procedures from the Secretary of the Interior under which Class III gaming may be conducted on the North Fork Site. In July 2016, the DOI issued Secretarial procedures (the “Secretarial Procedures”) pursuant to which the Mono may conduct Class III gaming on the North Fork Site. Approval of gaming compact by DOI The Compact was submitted to the DOI in July 2013. In October 2013, notice of the Compact taking effect was published in the Federal Register. The Secretarial Procedures supersede and replace the Compact. Record of decision regarding environmental impact published by BIA In November 2012, the record of decision for the Environmental Impact Statement for the North Fork Project was issued by the BIA. In December 2012, the Notice of Intent to take land into trust was published in the Federal Register. BIA accepting usable land into trust on behalf of the tribe The North Fork Site was accepted into trust in February 2013. Approval of management agreement by NIGC In December 2015, the Mono submitted a Second Amended and Restated Management Agreement, and certain related documents, to the NIGC. In July 2016, the Mono received a deficiency letter from the NIGC seeking additional information concerning the Second Amended and Restated Management Agreement. In March 2018, the Mono submitted the Management Agreement and certain related documents to the NIGC. In June 2018, the Mono received a deficiency letter from the NIGC seeking additional information concerning the Management Agreement. Approval of the Management Agreement by the NIGC is expected to occur following the Mono’s response to the deficiency letter. The Company believes the Management Agreement will be approved because the terms and conditions thereof are consistent with the provisions of the Indian Gaming Regulatory Act (“IGRA”). Gaming licenses: Type The North Fork Project will include the operation of Class II and Class III gaming, which are allowed pursuant to the terms of the Secretarial Procedures and IGRA, following approval of the Management Agreement by the NIGC. Number of gaming devices allowed The Secretarial Procedures allow for the operation of a maximum of 2,000 Class III slot machines at the facility during the first two years of operation and thereafter up to 2,500 Class III slot machines. There is no limit on the number of Class II gaming devices that the Mono can offer. Agreements with local authorities The Mono has entered into memoranda of understanding with the City of Madera, the County of Madera and the Madera Irrigation District under which the Mono agreed to pay one-time and recurring mitigation contributions, subject to certain contingencies. The memoranda of understanding have all been amended to restructure the timing of certain payments due to delays in the development of the North Fork Project. |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consisted of the following (amounts in thousands): December 31, 2020 2019 Contract and customer-related liabilities: Rewards Program liability $ 17,465 $ 21,392 Advance deposits and future wagers 11,854 22,185 Unpaid wagers, outstanding chips and other customer-related liabilities 18,248 19,722 Other accrued liabilities: Accrued payroll and related 41,026 57,438 Accrued gaming and related 20,316 27,490 Construction payables and equipment purchase accruals 3,710 27,462 Operating lease liabilities, current portion 2,936 3,646 Interest rate swaps 11,758 440 Other 18,764 20,785 $ 146,077 $ 200,560 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following (amounts in thousands): December 31, 2020 2019 Term Loan B Facility due February 7, 2027, interest at a margin above LIBOR or base rate (2.50% at December 31, 2020), net of unamortized discount and deferred issuance costs of $29.5 million at December 31, 2020 $ 1,470,944 $ — Term Loan B Facility due June 8, 2023, interest at a margin above LIBOR or base rate (4.30% at December 31, 2019), net of unamortized discount and deferred issuance costs of $33.7 million at December 31, 2019 — 1,766,757 Term Loan A Facility due February 7, 2025, interest at a margin above LIBOR or base rate (1.90% at December 31, 2020), net of unamortized discount and deferred issuance costs of $2.2 million at December 31, 2020 179,712 — Term Loan A Facility due March 8, 2023, interest at a margin above LIBOR or base rate (3.55% at December 31, 2019), net of unamortized discount and deferred issuance costs of $2.5 million at December 31, 2019 — 186,394 Term Loan A Facility, due June 8, 2022, interest at a margin above LIBOR or base rate (3.80% at December 31, 2019), net of unamortized discount and deferred issuance costs of $0.6 million at December 31, 2019 — 52,289 Revolving Credit Facility due February 7, 2025, interest at a margin above LIBOR or base rate — — Revolving Credit Facility, due March 8, 2023, interest at a margin above LIBOR or base rate (3.54% weighted average at December 31, 2019) — 440,000 4.50% Senior Notes due February 15, 2028, net of unamortized discount and deferred issuance costs of $7.6 million at December 31, 2020 683,257 — 5.00% Senior Notes due October 1, 2025, net of deferred issuance costs of $4.1 million and $5.0 million at December 31, 2020 and 2019, respectively 526,260 545,011 Other long-term debt, weighted-average interest of 3.83% at December 31, 2020 and 2019, net of unamortized discount and deferred issuance costs of $0.4 million at December 31, 2020 and 2019 41,834 42,840 Total long-term debt 2,902,007 3,033,291 Current portion of long-term debt (22,844) (33,989) Long-term debt, net $ 2,879,163 $ 2,999,302 |
Schedule of Interest Rates | Amounts outstanding under the Term Loan A Facility and the Revolving Credit Facility bear interest at either LIBOR or base rate, at Station LLC’s option, plus a spread that is dependent on Station LLC’s consolidated total leverage ratio as shown below: Consolidated Total Leverage Ratio Revolving Credit Facility and Term Loan A Facility due LIBOR Base Rate Greater than 4.00 to 1.00 1.75 % 0.75 % Less than or equal to 4.00 to 1.00 1.50 % 0.50 % |
Debt Instrument Redemption 4.50% Notes | On or after February 15, 2023, Station LLC may redeem all or a portion of the 4.50% Senior Notes at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest and additional interest to the applicable redemption date: Years Beginning February 15, Percentage 2023 102.250 % 2024 101.125 % 2025 and thereafter 100.000 % |
Debt Instrument Redemption 5.00% Notes | On or after October 1, 2020, Station LLC may redeem all or a portion of the 5.00% Senior Notes at the redemption prices (expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest and additional interest to the applicable redemption date: Years Beginning October 1, Percentage 2020 102.50 % 2021 101.25 % 2022 and thereafter 100.00 % |
Schedule of Maturities of Long-term Debt | Principal Maturities As of December 31, 2020, scheduled principal maturities of Station LLC’s long-term debt for each of the next five years and thereafter were as follows (amounts in thousands): Years Ending December 31, 2021 $ 22,844 2022 25,906 2023 25,950 2024 25,995 2025 726,840 Thereafter 2,118,087 2,945,622 Debt discounts and issuance costs (43,615) $ 2,902,007 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Operations and Balance Sheets, Location | The fair values of Station LLC’s interest rate swaps, exclusive of accrued interest, as well as their classification on the Consolidated Balance Sheets, are presented below (amounts in thousands): December 31, 2020 2019 Interest rate swaps not designated in hedge accounting relationships: Other accrued liabilities $ 11,758 $ 440 Other long-term liabilities — 5,227 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets at Fair Value Recurring Basis and Fair Value Hierarchy | Information about the Company’s liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall, is presented below (amounts in thousands): December 31, 2020 2019 Level of Fair Value Hierarchy Liabilities Interest rate swaps $ 11,758 $ 5,667 Level 2 - Significant unobservable inputs |
Schedule of Long-Term Debt, Carrying Values and Estimated Fair Values | The estimated fair value of the Company’s long-term debt compared with its carrying amount is presented below (amounts in millions): December 31, 2020 2019 Aggregate fair value $ 2,936 $ 3,109 Aggregate carrying amount 2,902 3,033 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table presents changes in accumulated other comprehensive (loss) income balances, net of tax and noncontrolling interest (amounts in thousands): Unrealized gain (loss) on interest rate swaps Unrecognized pension liability Total Balances, December 31, 2018 $ 1,279 $ (196) $ 1,083 Unrealized loss arising during the period — (271) (271) Amounts reclassified into income (1,458) — (1,458) Net current-period other comprehensive loss (1,458) (271) (1,729) Exchanges of noncontrolling interests for Class A common stock and rebalancing 5 — 5 Balances, December 31, 2019 (174) (467) (641) Unrealized loss arising during the period — (406) (406) Amounts reclassified into income 178 249 427 Net current-period other comprehensive income (loss) 178 (157) 21 Exchanges of noncontrolling interests for Class A common stock and rebalancing (4) 1 (3) Balances, December 31, 2020 $ — $ (623) $ (623) |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | The table below presents the effect on Red Rock Resorts, Inc. stockholders’ equity from net (loss) income and changes in its ownership of Station Holdco (amounts in thousands): Year Ended December 31, 2020 2019 2018 Net (loss) income attributable to Red Rock Resorts, Inc. $ (150,397) $ (3,351) $ 157,541 Transfers from (to) noncontrolling interests: Exchanges of noncontrolling interests for Class A common stock 4,412 370 2,174 Rebalancing of ownership percentage between the Company and noncontrolling interests of Station Holdco (3,918) (8,361) (5,898) Net transfers from (to) noncontrolling interests 494 (7,991) (3,724) Change from net (loss) income attributable to Red Rock Resorts, Inc. and net transfers from (to) noncontrolling interests $ (149,903) $ (11,342) $ 153,817 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | A summary of stock option activity is presented below: Shares Weighted-average exercise price Weighted-average remaining contractual life (years) Aggregate intrinsic value (amounts in thousands) Outstanding at January 1, 2020 7,396,507 $ 25.79 Granted — — Exercised (a) (167,091) 20.49 Forfeited or expired (918,759) 26.62 Outstanding at December 31, 2020 6,310,657 $ 25.80 4.4 $ 10,051 Unvested instruments expected to vest 3,354,651 $ 26.32 4.9 $ 4,020 Exercisable at December 31, 2020 2,956,006 $ 25.22 3.8 $ 6,031 ____________________________________ |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | The following information is provided for stock options awarded under the plan: Year Ended December 31, 2020 2019 2018 Weighted-average grant date fair value $ — $ 7.20 $ 9.25 Total intrinsic value of stock options exercised (amounts in thousands) $ 498 $ 1,517 $ 3,550 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The weighted-average assumptions used by the Company to estimate the grant date fair values of stock option awards were as follows: Year Ended December 31, 2020 2019 2018 Expected stock price volatility n/a 32.22% 33.25% Expected term (in years) n/a 4.98 4.87 Risk-free interest rate n/a 2.26% 2.63% Expected dividend yield n/a 1.43% 1.52% ____________________________________ n/a — No stock option awards were granted in 2020. |
Schedule of Nonvested Share Activity [Table Text Block] | A summary of restricted stock activity is presented below: Shares Weighted-average grant date fair value Nonvested at January 1, 2020 712,447 $ 26.75 Granted 19,290 27.22 Vested (336,083) 26.15 Forfeited (26,843) 28.41 Nonvested at December 31, 2020 368,811 $ 27.19 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | The following information is provided for restricted stock awarded under the plan: Year Ended December 31, 2020 2019 2018 Weighted-average grant date fair value per share $ 27.22 $ 27.01 $ 31.95 Total fair value of shares vested (amounts in thousands) $ 8,789 $ 2,101 $ 1,194 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | The following table presents the location of share-based compensation expense in the Consolidated Statements of Operations (amounts in thousands): Year Ended December 31, 2020 2019 2018 Operating costs and expenses: Casino $ 321 $ 458 $ 250 Food and beverage (68) 202 36 Room 12 11 — Selling, general and administrative 10,621 16,177 11,003 Total share-based compensation expense $ 10,886 $ 16,848 $ 11,289 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income tax expense (benefit) were as follows (amounts in thousands): Year Ended December 31, 2020 2019 2018 Current income taxes: Federal $ — $ — $ — State and local — 1 15 Total current income taxes — 1 15 Deferred income taxes: Federal 113,977 (1,721) 23,817 State and local 104 (14) 43 Total deferred income taxes 114,081 (1,735) 23,860 Total income tax expense (benefit) $ 114,081 $ (1,734) $ 23,875 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of statutory federal income tax, which is the amount computed by multiplying income before tax by the statutory federal income tax rate, to the Company’s provision for income tax is as follows (amounts in thousands): Year Ended December 31, 2020 2019 2018 Expected U.S. federal income taxes at statutory rate $ (12,676) $ (1,779) $ 51,105 Income attributable to noncontrolling interests 5,071 711 (13,007) State and local income taxes, net of federal benefit 104 (14) 43 Non-deductible expenses 2,330 1,336 1,525 Tax credits (627) (1,555) (1,985) Share-based compensation contribution (909) (762) (1,152) Return to provision 888 (313) 1,037 Other — — 2,874 Valuation allowance 119,900 642 (16,565) Income tax expense (benefit) $ 114,081 $ (1,734) $ 23,875 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred tax assets and liabilities are as follows (amounts in thousands): December 31, 2020 2019 Deferred tax assets: Tax credit carryforwards $ 5,920 $ 5,293 Net operating loss carryforwards and other attributes 81,233 66,476 Investment in partnership 67,559 76,004 Payable pursuant to tax receivable agreement 5,758 5,268 Total gross deferred tax assets 160,470 153,041 Valuation allowance (160,470) (39,856) Total deferred tax assets, net of valuation allowance $ — $ 113,185 |
Schedule of Unrecognized Tax Benefits Roll Forward | The Company had the following activity for unrecognized tax benefits (amounts in thousands): Year Ended December 31, 2020 2019 2018 Balance at beginning of year $ 1,004 $ — $ — Tax positions related to current year additions 142 519 — Additions for tax positions of prior years 91 485 — Tax positions related to prior years reductions — — — Reductions due to lapse of statute of limitations on tax positions — — — Settlements — — — Balance at end of year $ 1,237 $ 1,004 $ — |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | The following table provides information about the changes in benefit obligation and the fair value of plan assets (amounts in thousands): Year Ended December 31, 2020 2019 Change in benefit obligation: Benefit obligation (accumulated and projected) at beginning of year $ 14,185 $ 13,357 Interest cost 428 517 Actuarial loss 389 1,390 Benefits paid (515) (1,079) Settlements paid (1,588) — Benefit obligation (accumulated and projected) at end of year 12,899 14,185 Change in fair value of plan assets: Fair value of plan assets at beginning of year 9,526 8,725 Actual return on plan assets 385 1,045 Employer contributions 3,952 835 Benefits paid (515) (1,079) Settlements paid (1,588) — Fair value of plan assets at end of year 11,760 9,526 Funded status at end of year $ (1,139) $ (4,659) |
Schedule of Net Benefit Costs and Amounts Recognized in Other Comprehensive Income [Table Text Block] | The table below presents the components of pension expense (amounts in thousands): Year Ended December 31, 2020 2019 2018 Components of net periodic benefit cost: Interest cost $ 428 $ 517 $ 475 Expected return on plan assets (256) (187) (209) Effect of settlement 160 — — Net periodic benefit cost 332 330 266 Other changes recognized in other comprehensive loss: Net loss 260 532 371 Amount recognized due to settlement (160) — — Total recognized in other comprehensive loss 100 532 371 Total recognized in net periodic benefit cost and other comprehensive loss $ 432 $ 862 $ 637 |
Schedule of Defined Pension Plan Statements of Financial Performance and Financial Position, Location [Table Text Block] | Amounts recognized on the Consolidated Balance Sheets related to the Pension Plan consisted of the following (amounts in thousands): December 31, 2020 2019 Other long-term liabilities $ 1,139 $ 4,659 Net actuarial loss recognized in Accumulated Other Comprehensive Income 1,303 1,203 |
Defined Benefit Plan, Assumptions [Table Text Block] | The following tables present the weighted-average actuarial assumptions used to calculate the net periodic benefit cost and obligation: Year Ended December 31, 2020 2019 2018 Net periodic benefit cost: Discount rate 3.20% 4.15% 3.60% Expected long-term rate of return 5.80% 5.80% 5.80% Rate of compensation increase n/a n/a n/a December 31, 2020 2019 Benefit obligations: Discount rate 2.45% 3.20% Cash balance interest crediting rate 2.04% 2.77% Rate of compensation increase n/a n/a |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The fair values of the Pension Plan assets at December 31, 2019 by asset category were as follows (amounts in thousands): Fair Value Measurement at Reporting Date Using Balance at December 31, 2019 Quoted Prices Significant Significant Fixed income $ 4,846 $ 4,822 $ 24 $ — Domestic equity 1,748 150 1,598 — International equity 1,273 1,273 — — Long/short equity 900 900 — — Other 759 310 449 — $ 9,526 $ 7,455 $ 2,071 $ — |
Schedule of Expected Benefit Payments [Table Text Block] | At December 31, 2020, expected benefit payments for the next ten years were as follows (amounts in thousands): Years Ending December 31, 2021 $ 1,300 2022 830 2023 640 2024 1,000 2025 740 2026 - 2030 3,760 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | A reconciliation of the numerator and denominator used in the calculation of basic and diluted (loss) earnings per share is presented below (amounts in thousands): Year Ended December 31, 2020 2019 2018 Net (loss) income, basic $ (174,543) $ (6,737) $ 219,480 Less: net (loss) income attributable to noncontrolling interests, basic (24,146) (3,386) 61,939 Net (loss) income attributable to Red Rock, basic $ (150,397) $ (3,351) $ 157,541 Effect of dilutive securities — — 48,864 Net (loss) income attributable to Red Rock, diluted $ (150,397) $ (3,351) $ 206,405 Year Ended December 31, 2020 2019 2018 Weighted-average shares of Class A common stock outstanding, basic 70,542 69,565 69,115 Effect of dilutive securities — — 47,744 Weighted-average shares of Class A common stock outstanding, diluted 70,542 69,565 116,859 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The calculation of diluted (loss) earnings per share of Class A common stock excluded the following shares that could potentially dilute basic earnings per share in the future because their inclusion would have been antidilutive (amounts in thousands): As of December 31, 2020 2019 2018 Shares issuable in exchange for Class B common stock and LLC Units 46,086 46,827 — Shares issuable upon exercise of stock options 6,311 7,397 1,966 Shares issuable upon vesting of restricted stock 369 712 64 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease Expense | The components of lease expense were as follows (amounts in thousands): Year Ended December 31, 2020 2019 Operating lease cost $ 4,995 $ 5,185 Short-term lease cost 1,895 7,073 Variable lease cost 17,400 28,749 Total lease expense $ 24,290 $ 41,007 |
Lessee Disclosures | Supplemental balance sheet information related to leases under which the Company is the lessee was as follows (amounts in thousands): December 31, 2020 2019 Operating lease right-of-use assets $ 11,483 $ 13,099 Operating lease liabilities: Current portion $ 2,936 $ 3,646 Noncurrent portion 10,950 10,675 Total operating lease liabilities $ 13,886 $ 14,321 Weighted-average remaining lease term - operating leases (years) 36.1 33.5 Weighted-average discount rate - operating leases 5.32 % 5.40 % Supplemental cash flow information related to leases under which the Company is the lessee was as follows (amounts in thousands): Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,387 $ 5,842 Right-of use assets obtained in exchange for new lease liabilities: Operating leases $ 1,336 $ — |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments required under operating leases with initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2020 are as follows (amounts in thousands): Year Ending December 31, 2021 $ 4,222 2022 1,667 2023 871 2024 736 2025 537 Thereafter 42,670 Total future lease payments 50,703 Less imputed interest (36,817) Total operating lease liabilities $ 13,886 |
Lessor, Operating Lease, Payments to be Received, Maturity | The following table presents undiscounted future minimum rentals to be received under operating leases as of December 31, 2020 (amounts in thousands): Year Ending December 31, 2021 $ 7,360 2022 5,416 2023 4,072 2024 3,007 2025 662 Thereafter 2,861 $ 23,378 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company’s segment information and a reconciliation of net income to Adjusted EBITDA are presented below (amounts in thousands): Year Ended December 31, 2020 2019 2018 Net revenues Las Vegas operations: Casino $ 764,255 $ 984,253 $ 940,483 Food and beverage 192,899 481,558 381,197 Room 87,035 192,305 170,824 Other (a) 49,716 100,073 94,894 Management fees 537 571 605 Las Vegas operations net revenues 1,094,442 1,758,760 1,588,003 Native American management: Management fees 81,440 91,074 87,009 Reportable segment net revenues 1,175,882 1,849,834 1,675,012 Corporate and other (a) 6,563 6,700 6,018 Net revenues $ 1,182,445 $ 1,856,534 $ 1,681,030 Net (loss) income $ (174,543) $ (6,737) $ 219,480 Adjustments Depreciation and amortization 231,391 222,211 180,255 Share-based compensation 10,886 16,848 11,289 Write-downs and other charges, net 36,537 82,123 34,650 Tax receivable agreement liability adjustment (15) (97) (90,638) Interest expense, net 128,465 156,679 143,099 (Gain) loss on extinguishment/modification of debt, net (240) 19,939 — Change in fair value of derivative instruments 21,590 19,467 (12,415) Provision (benefit) for income tax 114,081 (1,734) 23,875 Other 333 316 (633) Adjusted EBITDA (b) $ 368,485 $ 509,015 $ 508,962 Adjusted EBITDA Las Vegas operations $ 335,134 $ 472,921 $ 474,503 Native American management 77,440 85,562 80,795 Reportable segment Adjusted EBITDA 412,574 558,483 555,298 Corporate and other (44,089) (49,468) (46,336) Adjusted EBITDA $ 368,485 $ 509,015 $ 508,962 December 31, 2020 2019 Total assets Las Vegas operations $ 3,376,296 $ 3,637,893 Native American management 31,146 31,573 Corporate and other 332,512 444,721 $ 3,739,954 $ 4,114,187 ____________________________________ (a) Includes tenant lease revenue which is accounted for under the lease accounting guidance. See Note 16. (b) Adjusted EBITDA includes net (loss) income plus depreciation and amortization, share-based compensation, write-downs and other charges, net (including net losses on asset disposals, severance, redevelopment and preopening expenses, business innovation and technology enhancements), tax receivable agreement liability adjustment, interest |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
Summary of Valuation Allowance [Table Text Block] | Balance at Beginning of Year Additions (deductions) Balance at End of Year Description Deferred income tax asset valuation allowance: 2020 $ 39,856 $ 120,614 $ 160,470 2019 39,968 (112) 39,856 2018 57,607 (17,639) 39,968 |
Organization and Background (De
Organization and Background (Details) - Casino_Property | Dec. 31, 2020 | Dec. 31, 2019 |
Parent ownership percentage (unconsolidated) | 50.00% | |
Station Holdco [Member] | Red Rock Resorts [Member] | Non-Voting Units [Member] | ||
Parent ownership percentage (consolidated) | 60.70% | 60.10% |
Station Holdco [Member] | Red Rock Resorts [Member] | Voting units | ||
Parent ownership percentage (consolidated) | 100.00% | |
Major Hotel Casino Properties [Member] | Wholly Owned Properties [Member] | ||
Number of casino properties | 10 | |
Smaller Casino Properties [Member] | Wholly Owned Properties [Member] | ||
Number of casino properties | 10 | |
Smaller Casino Properties [Member] | Partially Owned Properties [Member] | ||
Number of casino properties | 3 | |
Parent ownership percentage (unconsolidated) | 50.00% |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)ashares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | |
Ownership percentage in joint ventures | 50.00% | ||
Units outstanding (in units) | shares | 117,313,972 | 117,292,792 | |
Total ownership percentage (consolidated) | 100.00% | 100.00% | |
Allowance for doubtful accounts | $ 8,200 | $ 4,900 | |
Net revenues | 1,182,445 | 1,856,534 | $ 1,681,030 |
Gaming tax expense | 56,253 | 78,427 | 74,501 |
Advertising expense | $ 10,205 | 31,678 | 24,302 |
Percent of realized tax benefits payable to subsidiary under the tax receivable agreement | 85.00% | ||
Complimentary Goods and Services [Member] | |||
Net revenues | $ 107,100 | 228,700 | 206,500 |
Management fees | |||
Net revenues | $ 81,977 | $ 91,645 | 87,614 |
Building and Building Improvements [Member] | Minimum [Member] | |||
Useful life | 10 years | ||
Building and Building Improvements [Member] | Maximum [Member] | |||
Useful life | 45 years | ||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |||
Useful life | 3 years | ||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |||
Useful life | 10 years | ||
Land Held for Development [Member] | |||
Area of land | a | 315 | ||
Number of project sites | 6 | ||
Red Rock Resorts [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Basis spread on late payments under the tax receivable agreement | 5.00% | ||
Station Holdco [Member] | Red Rock Resorts [Member] | Non-Voting Units [Member] | |||
Units outstanding (in units) | shares | 71,228,168 | 70,465,422 | |
Parent ownership percentage (consolidated) | 60.70% | 60.10% | |
Station Holdco [Member] | Continuing Owners [Member] | Non-Voting Units [Member] | |||
Units outstanding (in units) | shares | 46,085,804 | 46,827,370 | |
Noncontrolling ownership percentage (consolidated) | 39.30% | 39.90% | |
Station Casinos LLC [Member] | Station Holdco [Member] | |||
Parent ownership percentage (consolidated) | 100.00% | ||
Federated Indians of Graton Rancheria [Member] | SC Sonoma Management LLC [Member] | Management fees | |||
Net revenues | $ 77,400 | $ 85,600 | $ 77,500 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 4,082,054 | $ 4,091,850 | |
Accumulated depreciation | (1,224,081) | (1,030,088) | |
Property and equipment, net | 2,857,973 | 3,061,762 | |
Depreciation | 223,846 | 213,642 | $ 169,656 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 271,603 | 271,603 | |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,001,283 | 2,990,259 | |
Furniture, Fixtures and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 800,257 | 801,868 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 8,911 | $ 28,120 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Indefinite-Lived and Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 195,676 | $ 195,676 |
Accumulated goodwill impairment loss | 1,200 | 1,200 |
Finite-lived intangible assets, accumulated amortization | (19,520) | (54,831) |
Intangible assets, gross (excluding goodwill) | 120,337 | 163,337 |
Intangible assets, net (excluding goodwill) | 100,817 | 108,506 |
Net intangibles, gross | 118,142 | 161,142 |
Net intangibles, accumulated amortization | (18,905) | (54,361) |
Net intangibles, net | 99,237 | 106,781 |
Customer Relationships [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 23,600 | 23,600 |
Finite-lived intangible assets, accumulated amortization | (14,726) | (13,152) |
Finite-lived intangible assets, net | $ 8,874 | $ 10,448 |
Customer Relationships [Member] | Minimum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 15 years | 15 years |
Customer Relationships [Member] | Maximum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 15 years | 15 years |
Management Contracts [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 4,000 | $ 47,000 |
Finite-lived intangible assets, accumulated amortization | (1,004) | (38,780) |
Finite-lived intangible assets, net | $ 2,996 | $ 8,220 |
Management Contracts [Member] | Minimum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 7 years | 7 years |
Management Contracts [Member] | Maximum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 20 years | 20 years |
Contract-Based Intangible Assets [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 9,000 | $ 9,000 |
Finite-lived intangible assets, accumulated amortization | (1,913) | (1,463) |
Finite-lived intangible assets, net | $ 7,087 | $ 7,537 |
Contract-Based Intangible Assets [Member] | Minimum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 20 years | 20 years |
Contract-Based Intangible Assets [Member] | Maximum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 20 years | 20 years |
Trademarks [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 6,000 | $ 6,000 |
Finite-lived intangible assets, accumulated amortization | (1,700) | (1,300) |
Finite-lived intangible assets, net | $ 4,300 | $ 4,700 |
Trademarks [Member] | Minimum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 15 years | 15 years |
Trademarks [Member] | Maximum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 15 years | 15 years |
Beneficial Leases [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 237 | $ 237 |
Finite-lived intangible assets, accumulated amortization | (177) | (136) |
Finite-lived intangible assets, net | $ 60 | $ 101 |
Beneficial Leases [Member] | Minimum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 6 years | 6 years |
Beneficial Leases [Member] | Maximum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 6 years | 6 years |
Below Market Lease [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Below market lease, gross | $ 2,195 | $ 2,195 |
Below market lease, accumulated amortization | (615) | (470) |
Below market lease, net | $ 1,580 | $ 1,725 |
Below Market Lease [Member] | Minimum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 15 years | 15 years |
Below Market Lease [Member] | Maximum [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Useful life | 15 years | 15 years |
Brands [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets (excluding goodwill) | $ 77,200 | $ 77,200 |
License Rights [Member] | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets (excluding goodwill) | $ 300 | $ 300 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortization Expense for Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 7,545 | $ 8,569 | $ 10,599 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 2,426 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2,401 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,384 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,384 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 2,384 |
Native American Development - N
Native American Development - North Fork (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)agaming_deviceTable_Games | Dec. 31, 2019USD ($) | |
Development and Management Agreements, Native American [Line Items] | ||
Native American development costs | $ 22,149 | $ 18,749 |
North Fork Rancheria of Mono Indians (Mono) [Member] | ||
Development and Management Agreements, Native American [Line Items] | ||
Area of land | a | 305 | |
Number of table games | Table_Games | 40 | |
Reimbursable advances for Native American development projects | $ 37,200 | |
Native American development costs | $ 22,100 | |
Property development fee, percent | 4.00% | |
Project management fee, percent | 30.00% | |
Management agreement, term | 7 years | |
Development agreement, term | 7 years | |
Estimated period, after construction begins, facility is completed and open for business | 18 months | |
North Fork Rancheria of Mono Indians (Mono) [Member] | Minimum [Member] | ||
Development and Management Agreements, Native American [Line Items] | ||
Number of slot machines | gaming_device | 2,000 | |
Estimated costs for Native American development projects | $ 300,000 | |
Estimated beginning of construction in months | 3 months | |
Successful project completion, percent | 75.00% | |
North Fork Rancheria of Mono Indians (Mono) [Member] | Maximum [Member] | ||
Development and Management Agreements, Native American [Line Items] | ||
Number of slot machines | gaming_device | 2,500 | |
Estimated costs for Native American development projects | $ 350,000 | |
Estimated beginning of construction in months | 6 months | |
Successful project completion, percent | 85.00% |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Rewards Program liability | $ 17,465 | $ 21,392 |
Advance deposits and future wagers | 11,854 | 22,185 |
Unpaid wagers, outstanding chips and other customer-related liabilities | 18,248 | 19,722 |
Accrued gaming and related | 20,316 | 27,490 |
Accrued payroll and related | 41,026 | 57,438 |
Construction payables and equipment purchase accruals | 3,710 | 27,462 |
Operating lease liabilities, current portion | 2,936 | 3,646 |
Interest rate swaps | 11,758 | 440 |
Other | 18,764 | 20,785 |
Other accrued liabilities, total | 146,077 | 200,560 |
Contract assets | $ 0 | $ 0 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,902,007 | $ 3,033,291 |
Current portion of long-term debt | (22,844) | (33,989) |
Long-term debt, net | 2,879,163 | 2,999,302 |
Line of Credit [Member] | Term Loan B Facility, Due February 7, 2027 [Member] | Station Casinos LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,470,944 | 0 |
Debt Instrument, Interest Rate, Effective Percentage | 2.50% | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 29,500 | |
Line of Credit [Member] | Term Loan B Facility, Due June 8, 2023 [Member] | Station Casinos LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | $ 1,766,757 |
Debt Instrument, Interest Rate, Effective Percentage | 4.30% | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 33,700 | |
Line of Credit [Member] | Term Loan A Facility, Due February 7, 2025 [Member] | Station Casinos LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 179,712 | 0 |
Debt Instrument, Interest Rate, Effective Percentage | 1.90% | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 2,200 | |
Line of Credit [Member] | Term Loan A Facility, Due March 8, 2023 [Member] | Station Casinos LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | $ 186,394 |
Debt Instrument, Interest Rate, Effective Percentage | 3.55% | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 2,500 | |
Line of Credit [Member] | Term Loan A Facility, Due June 8, 2022 [Member] | Station Casinos LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | $ 52,289 |
Debt Instrument, Interest Rate, Effective Percentage | 3.80% | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 600 | |
Revolving Credit Facility [Member] | Revolving Credit Facility Due February 7, 2025 | Station Casinos LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0 |
Revolving Credit Facility [Member] | Revolving Credit Facility Due March 8, 2023 [Member] | Station Casinos LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 440,000 |
Debt Instrument, Interest Rate, Effective Percentage | 3.54% | |
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | Station Casinos LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 683,257 | $ 0 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 7,600 | |
Senior Notes [Member] | 5.00% Senior Notes, Due October 1, 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
Senior Notes [Member] | 5.00% Senior Notes, Due October 1, 2025 [Member] | Station Casinos LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 526,260 | $ 545,011 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 4,100 | $ 5,000 |
Other Debt Obligations [Member] | Station Casinos LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 41,834 | $ 42,840 |
Long-term Debt, Weighted Average Interest Rate | 3.83% | 3.83% |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 400 | $ 400 |
Long-term Debt - Credit Facilit
Long-term Debt - Credit Facility (Details) $ in Thousands | Feb. 07, 2020USD ($) | Dec. 31, 2020USD ($)Rate | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||
Gain (loss) on extinguishment/modification of debt, net | $ 240 | $ (19,939) | $ 0 | |
Long-term Debt | 2,902,007 | 3,033,291 | ||
Station Casinos LLC [Member] | Term Loan B Facility, Due February 7, 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Repurchase Amount | 17,700 | |||
Station Casinos LLC [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Gain (loss) on extinguishment/modification of debt, net | 500 | |||
Station Casinos LLC [Member] | Line of Credit [Member] | Term Loan B Facility, Due February 7, 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||
Line of Credit Facility, Periodic Payment, Principal | 3,800 | |||
Long-term Debt | $ 1,470,944 | 0 | ||
Station Casinos LLC [Member] | Line of Credit [Member] | Term Loan B Facility, Due February 7, 2027 [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Ratio Of Indebtedness To EBITDA | 5 | |||
Prepayment step-down factor | 25.00% | |||
Station Casinos LLC [Member] | Line of Credit [Member] | Term Loan B Facility, Due February 7, 2027 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Ratio Of Indebtedness To EBITDA | 4.50 | |||
Prepayment step-down factor | 0.00% | |||
Station Casinos LLC [Member] | Line of Credit [Member] | Term Loan B Facility, Due February 7, 2027 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||
Station Casinos LLC [Member] | Line of Credit [Member] | Term Loan B Facility, Due February 7, 2027 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.25% | |||
Station Casinos LLC [Member] | Line of Credit [Member] | Term Loan B Facility, Due February 7, 2027 [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
Station Casinos LLC [Member] | Line of Credit [Member] | Term Loan A Facility, Due February 7, 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Periodic Payment, Principal | $ 2,400 | |||
Long-term Debt | 179,712 | 0 | ||
Station Casinos LLC [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility Due February 7, 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unused Borrowing Capacity, Amount | 1,000,000 | |||
Long-term Debt | 0 | $ 0 | ||
Letters of Credit Outstanding, Amount | 29,400 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,030,000 | |||
Station Casinos LLC [Member] | Line of Credit and Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Gain (loss) on extinguishment/modification of debt, net | 12,500 | |||
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction | $ 5,100 | |||
Station Casinos LLC [Member] | Line of Credit and Revolving Credit Facility [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Ratio Of Indebtedness To EBITDA, Period One | 6.50 | |||
Station Casinos LLC [Member] | Line of Credit and Revolving Credit Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest Coverage Ratio | 2.50 | |||
Ratio Of Indebtedness To EBITDA, Period Five | 5.25 | |||
Station Casinos LLC [Member] | Line of Credit and Revolving Credit Facility [Member] | Revolving Credit Facility and Term Loan A Facility, Due June 8, 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Ratio Of Indebtedness To EBITDA | 4 | |||
Station Casinos LLC [Member] | Line of Credit and Revolving Credit Facility [Member] | Revolving Credit Facility and Term Loan A Facility, Due June 8, 2022 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.75% | |||
Station Casinos LLC [Member] | Line of Credit and Revolving Credit Facility [Member] | Revolving Credit Facility and Term Loan A Facility, Due June 8, 2022 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.50% | |||
Station Casinos LLC [Member] | Line of Credit and Revolving Credit Facility [Member] | Revolving Credit Facility and Term Loan A Facility, Due June 8, 2022 [Member] | Base Rate [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 0.75% | |||
Station Casinos LLC [Member] | Line of Credit and Revolving Credit Facility [Member] | Revolving Credit Facility and Term Loan A Facility, Due June 8, 2022 [Member] | Base Rate [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 0.50% |
Long-term Debt - 4.50% Senior N
Long-term Debt - 4.50% Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 21, 2017 | |
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 2,945,622 | |||
Gain (loss) on extinguishment/modification of debt, net | $ 240 | $ (19,939) | $ 0 | |
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 750,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |||
Debt Instrument, Repurchased Face Amount | $ 59,200 | |||
Gain (loss) on extinguishment/modification of debt, net | $ 10,300 | |||
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | Debt Instrument, Redemption, Period One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 102.25% | |||
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 101.125% | |||
Senior Notes [Member] | 4.50% Senior Notes, Due February 15, 2028 [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% |
Long-term Debt - 5.00% Senior N
Long-term Debt - 5.00% Senior Notes (Details) - USD ($) $ in Thousands | Feb. 22, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 21, 2017 |
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 2,945,622 | ||||
Gain (loss) on extinguishment/modification of debt, net | $ 240 | $ (19,939) | $ 0 | ||
Senior Notes [Member] | 5.00% Senior Notes, Due October 1, 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 550,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||
Debt Instrument, Repurchased Face Amount | $ 19,700 | ||||
Gain (loss) on extinguishment/modification of debt, net | $ 1,900 | ||||
Senior Notes [Member] | 5.00% Senior Notes, Due October 1, 2025 [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of Debt, Amount | $ 250,000 | ||||
Senior Notes [Member] | 5.00% Senior Notes, Due October 1, 2025 [Member] | Debt Instrument, Redemption, Period One [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 102.50% | ||||
Senior Notes [Member] | 5.00% Senior Notes, Due October 1, 2025 [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 101.25% | ||||
Senior Notes [Member] | 5.00% Senior Notes, Due October 1, 2025 [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Senior Notes [Member] | 5.00% Senior Notes, Due October 1, 2025 [Member] | Debt Instrument, Redemption Due to Change in Control [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 101.00% | ||||
Senior Notes [Member] | 5.00% Senior Notes, Due October 1, 2025 [Member] | Debt Instrument, Redemption Due to Certain Asset Sales [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% |
Long-term Debt - Corporate Offi
Long-term Debt - Corporate Office Building Term Loan (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 19, 2019 | Oct. 31, 2019 | |
Debt Instrument [Line Items] | ||||||
Gain (loss) on extinguishment/modification of debt, net | $ 240 | $ (19,939) | $ 0 | |||
Long-term Debt, Gross | $ 2,945,622 | $ 2,945,622 | ||||
Other Debt Obligations [Member] | Corporate Office Lease [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Debt | 57,000 | |||||
Sale Leaseback Transaction, Net Book Value | $ 37,400 | |||||
Gain (loss) on extinguishment/modification of debt, net | $ 19,600 | |||||
Other Debt Obligations [Member] | Corp Bldg Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 42,800 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.80% | 3.80% | ||||
Debt Instrument, Periodic Payment | $ 200 |
Long-term Debt - Principal Matu
Long-term Debt - Principal Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 22,844 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 25,906 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 25,950 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 25,995 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 726,840 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 2,118,087 | |
Long-term Debt, Gross | 2,945,622 | |
Debt Instrument, Unamortized Discount and Debt Issue Costs | (43,615) | |
Long-term Debt | $ 2,902,007 | $ 3,033,291 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Derivative Liability | $ 11,758 | $ 440 | |
Interest Rate Swap [Member] | Interest Expense, Net [Member] | |||
Derivative [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1,400 | (2,800) | $ (2,900) |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | Other Accrued Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 11,758 | 440 | |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities | |||
Derivative [Line Items] | |||
Derivative Liability | $ 0 | $ 5,227 | |
Station Casinos LLC [Member] | Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Derivative [Line Items] | |||
Derivative, Average Fixed Interest Rate | 1.94% | ||
Derivative, Amount of Hedged Item | $ 1,300,000 | ||
Effective fixed interest rate on hedged variable interest rate debt | 4.16% | ||
Assets Needed for Immediate Settlement, Aggregate Fair Value | $ 13,300 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 11,758,000 | $ 440,000 |
Aggregate fair value of long-term debt | 2,936,000,000 | 3,109,000,000 |
Aggregate carrying amount of long-term debt | 2,902,007,000 | 3,033,291,000 |
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 11,758,000 | 5,667,000 |
Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 11,758,000 | $ 5,667,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)voteClass$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018shares | |
Schedule of Capitalization, Equity [Line Items] | |||
Number of Classes of Stock Authorized | Class | 2 | ||
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 | |
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | |
Preferred Stock, Shares Issued | 0 | 0 | |
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.10 | $ 0.40 | |
Stock Repurchase Program, Authorized Amount | $ | $ 150 | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 741,000 | 57,000 | 380,000 |
Common Class A [Member] | |||
Schedule of Capitalization, Equity [Line Items] | |||
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 | |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | |
Economic interest percentage | 100.00% | ||
Common Stock, Voting Rights, Number of Votes | vote | 1 | ||
Common Class B [Member] | |||
Schedule of Capitalization, Equity [Line Items] | |||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.00001 | $ 0.00001 | |
Common Stock, Voting Rights, Number of Votes | vote | 1 | ||
Station Holdco [Member] | Common Class B [Member] | |||
Schedule of Capitalization, Equity [Line Items] | |||
Common Stock, Voting Rights, Number of Votes | vote | 10 | ||
Minimum [Member] | Station Holdco [Member] | Common Class A [Member] | |||
Schedule of Capitalization, Equity [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 10.00% | ||
Minimum [Member] | Station Holdco [Member] | Common Class B [Member] | |||
Schedule of Capitalization, Equity [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 30.00% |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ (641) | |
Ending balance | (623) | $ (641) |
AOCI Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (641) | 1,083 |
Unrealized loss arising during the period | (406) | (271) |
Amounts reclassified into income | 427 | (1,458) |
Net current-period other comprehensive income (loss) | 21 | (1,729) |
Exchanges of noncontrolling interests for Class A common stock and rebalancing | (3) | 5 |
Ending balance | (623) | (641) |
AOCI Attributable to Parent [Member] | Unrealized Gain (Loss) on Derivative Instruments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (174) | 1,279 |
Unrealized loss arising during the period | 0 | 0 |
Amounts reclassified into income | 178 | (1,458) |
Net current-period other comprehensive income (loss) | 178 | (1,458) |
Exchanges of noncontrolling interests for Class A common stock and rebalancing | (4) | 5 |
Ending balance | 0 | (174) |
AOCI Attributable to Parent [Member] | Unrecognized Pension Liability [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (467) | (196) |
Unrealized loss arising during the period | (406) | (271) |
Amounts reclassified into income | 249 | 0 |
Net current-period other comprehensive income (loss) | (157) | (271) |
Exchanges of noncontrolling interests for Class A common stock and rebalancing | 1 | 0 |
Ending balance | $ (623) | $ (467) |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Ownership of Station Holdco LLC (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net (loss) income attributable to Red Rock Resorts, Inc. | $ (150,397) | $ (3,351) | $ 157,541 |
Exchanges of noncontrolling interests for Class A common stock | 0 | 0 | 0 |
Rebalancing of ownership percentage between the Company and noncontrolling interests of Station Holdco | 0 | 0 | 0 |
Net transfers from (to) noncontrolling interests | 494 | (7,991) | (3,724) |
Change from net (loss) income attributable to Red Rock Resorts, Inc. and net transfers from (to) noncontrolling interests | (149,903) | (11,342) | 153,817 |
Noncontrolling Interest [Member] | |||
Exchanges of noncontrolling interests for Class A common stock | 4,412 | 370 | 2,174 |
Rebalancing of ownership percentage between the Company and noncontrolling interests of Station Holdco | (3,918) | (8,361) | (5,898) |
Additional Paid-in Capital [Member] | |||
Exchanges of noncontrolling interests for Class A common stock | (4,404) | (368) | (2,149) |
Rebalancing of ownership percentage between the Company and noncontrolling interests of Station Holdco | $ 3,914 | $ 8,365 | $ 5,910 |
Share-based Compensation Text (
Share-based Compensation Text (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 8,789 | $ 2,101 | $ 1,194 |
Share-based compensation | 10,886 | 16,848 | 11,289 |
Share-based compensation expense | 10,886 | 16,848 | 11,289 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 498 | $ 1,517 | $ 3,550 |
Common Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of profit units that may be issued | 23,200,000 | ||
Nonvested profit units, total compensation cost not yet recognized | $ 12,300 | ||
Nonvested profit units, total compensation cost not yet recognized, period for recognition | 2 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 13,400,000 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested profit units, total compensation cost not yet recognized | $ 4,400 | ||
Nonvested profit units, total compensation cost not yet recognized, period for recognition | 2 years | ||
Share-based Payment Arrangement, Option [Member] | Common Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 6,310,657 | 7,396,507 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | $ 7.20 | $ 9.25 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.26% | 2.63% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 32.22% | 33.25% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years 11 months 23 days | 4 years 10 months 13 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.43% | 1.52% | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | ||
Share-based Payment Arrangement, Option [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 27.22 | $ 27.01 | $ 31.95 |
Restricted Stock [Member] | Common Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 19,290 | ||
Restricted Stock [Member] | Common Class A [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 2 years | ||
Restricted Stock [Member] | Common Class A [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years |
Share-based Compensation Weight
Share-based Compensation Weighted Average Assumptions (Details) - Share-based Payment Arrangement, Option [Member] - Common Class A [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.26% | 2.63% |
Expected volatility | 32.22% | 33.25% |
Expected life (in years) | 4 years 11 months 23 days | 4 years 10 months 13 days |
Dividend yield | 1.43% | 1.52% |
Share-based Compensation Alloca
Share-based Compensation Allocation of Recognized Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation | $ 10,886 | $ 16,848 | $ 11,289 |
Casino | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation | 321 | 458 | 250 |
Food and beverage | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation | (68) | 202 | 36 |
Room [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation | 12 | 11 | 0 |
Selling, general and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation | $ 10,621 | $ 16,177 | $ 11,003 |
Share-based Compensation Awards
Share-based Compensation Awards Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
StockOptionsWithheldForExercisePrice | 131,218 | ||
Common Class A [Member] | Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 6,310,657 | 7,396,507 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 10,051 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | [1] | (167,091) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 20.49 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (918,759) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 26.62 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 25.80 | $ 25.79 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 4 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 3,354,651 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 26.32 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 4 years 10 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 4,020 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 2,956,006 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 25.22 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 9 months 18 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 6,031 | ||
Common Class A [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested units, beginning balance | 712,447 | ||
Granted | 19,290 | ||
Vested | (336,083) | ||
Forfeited | (26,843) | ||
Nonvested units, ending balance | 368,811 | 712,447 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Nonvested units, Weighted-average grant date fair value, beginning balance | $ 26.75 | ||
Units granted, Weighted-average grant date fair value | 27.22 | ||
Vested, Weighted-average grant date fair value | 26.15 | ||
Forfeited, Weighted-average grant date fair value | 28.41 | ||
Nonvested units, Weighted-average grant date fair value, ending balance | $ 27.19 | $ 26.75 | |
[1] | Includes 131,218 options that were not converted into shares due to net share settlements to cover the aggregate exercise price and employee withholding taxes. |
Write-downs and Other Charges_3
Write-downs and Other Charges, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Write-downs and other charges, net | $ 36,537 | $ 82,123 | $ 34,650 |
Pre-Opening Costs | 25,900 | $ 18,600 | |
Palms Casino Resort [Member] | |||
Loss on Contract Termination | $ 39,800 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent | (188.68%) | 20.47% | 9.81% | |
Operating Loss Carryforwards | $ 375,900 | |||
Tax Credit Carryforward, Amount | 5,900 | |||
Unrecognized Tax Benefits | 1,200 | |||
Unrecognized Tax Benefits | 1,237 | $ 1,004 | $ 0 | $ 0 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 142 | 519 | 0 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 91 | 485 | 0 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 0 | 0 | 0 | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 0 | 0 | 0 | |
Unrecognized Tax Benefits, Increase Resulting from Settlements with Taxing Authorities | 0 | 0 | 0 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Federal | 0 | 0 | 0 | |
State and local | 0 | 1 | 15 | |
Total current income taxes | 0 | 1 | 15 | |
Federal | 113,977 | (1,721) | 23,817 | |
State and local | 104 | (14) | 43 | |
Total deferred income taxes | 114,081 | (1,735) | 23,860 | |
Total income tax (benefit) expense | 114,081 | (1,734) | 23,875 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Expected U.S. federal income taxes at statutory rate | (12,676) | (1,779) | 51,105 | |
Income attributable to noncontrolling interests | 5,071 | 711 | (13,007) | |
State and local income taxes, net of federal benefit | 104 | (14) | 43 | |
Non-deductible expenses | 2,330 | 1,336 | 1,525 | |
Tax credits | (627) | (1,555) | (1,985) | |
Effective Income Tax Rate Reconciliation, Tax Expense (Benefit), Share-based Payment Arrangement, Amount | (909) | (762) | (1,152) | |
Effective Income Tax Rate Reconciliation, Return to Provision | 888 | (313) | 1,037 | |
Other | 0 | 0 | 2,874 | |
Valuation allowance | 119,900 | 642 | (16,565) | |
Total income tax (benefit) expense | 114,081 | (1,734) | 23,875 | |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Tax credit carryforwards | 5,920 | 5,293 | ||
Net operating loss carryforwards and other attributes | 81,233 | 66,476 | ||
Investment in partnership | 67,559 | 76,004 | ||
Payable pursuant to tax receivable agreement | 5,758 | 5,268 | ||
Total gross deferred tax assets | 160,470 | 153,041 | ||
Valuation allowance | (160,470) | (39,856) | ||
Total deferred tax assets, net of valuation allowance | 0 | 113,185 | ||
Related Party Transaction [Line Items] | ||||
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interests | 2,345 | 213 | 2,528 | |
Net deferred tax assets resulting from exchanges of noncontrolling interests | 104 | 2,675 | ||
Tax Receivable Agreement, Estimated Tax Liability | 27,400 | 25,100 | ||
Payments on tax receivable agreement liability | 0 | 0 | (28,865) | |
Tax receivable agreement liability adjustment | 15 | $ 97 | $ 90,638 | |
Tax Receivable Agreement Liability Assigned [Member] | ||||
Related Party Transaction [Line Items] | ||||
Tax Receivable Agreement, Estimated Tax Liability | (119,200) | |||
Payments on tax receivable agreement liability | (28,900) | |||
Tax receivable agreement liability adjustment | 90,400 | |||
Pre-tax Attributes [Member] | ||||
Tax Credit Carryforward, Amount | 10,700 | |||
Frank J. Fertitta III and Lorenzo J Fertitta [Member] | ||||
Related Party Transaction [Line Items] | ||||
Tax Receivable Agreement, Estimated Tax Liability | 9,000 | |||
Subject to Expiration [Member] | ||||
Operating Loss Carryforwards | 101,600 | |||
Not Subject to Expiration [Member] | ||||
Operating Loss Carryforwards | $ 274,300 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Defined contribution 401(k) plan, employer matching contribution, percent of match | 50.00% | ||
Defined contribution 401(k) plan, employee contributions subject to employer match (percent) | 4.00% | ||
401(k) plan, expense for matching contributions | $ 8,600 | $ 4,200 | $ 4,100 |
401(k) plan, employer discretionary contribution amount | 5,200 | ||
Defined Benefit Plan, Pension Benefit Obligation | |||
Defined Benefit Plan, Benefit Obligation | 12,899 | 14,185 | 13,357 |
Defined Benefit Plan, Interest Cost | 428 | 517 | 475 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 389 | 1,390 | |
Defined Benefit Plan, Benefits Paid (Deprecated 2017-01-31) | (515) | (1,079) | |
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | 1,588 | 0 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 385 | 1,045 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 3,952 | 835 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | (515) | (1,079) | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | (1,588) | 0 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (1,139) | (4,659) | |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 0 | ||
Defined Benefit Plan, Net Periodic Pension Benefit Cost | |||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (256) | (187) | (209) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 160 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 332 | 330 | 266 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 260 | 532 | 371 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), after Tax | (160) | 0 | 0 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 100 | 532 | 371 |
Defined Benefit Plan, Amount Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Income) Loss, before Tax | 432 | 862 | $ 637 |
Liability, Defined Benefit Plan, Noncurrent | 1,139 | 4,659 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | $ 1,303 | $ 1,203 | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.20% | 4.15% | 3.60% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.80% | 5.80% | 5.80% |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.45% | 3.20% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 2.04% | 2.77% | |
Defined Benefit Plan, Plan Assets, Amount | $ 11,760 | $ 9,526 | $ 8,725 |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 1,300 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 830 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 640 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 1,000 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 740 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 3,760 | ||
Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 9,526 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 7,455 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 2,071 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Fixed Income Securities [Member] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 100.00% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100.00% | ||
Fixed Income Securities [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 4,846 | ||
Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 11,800 | 4,822 | |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 24 | ||
Fixed Income Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Defined Benefit Plan, Equity Securities, US [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 1,748 | ||
Defined Benefit Plan, Equity Securities, US [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 150 | ||
Defined Benefit Plan, Equity Securities, US [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 1,598 | ||
Defined Benefit Plan, Equity Securities, US [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Defined Benefit Plan, Equity Securities, Non-US [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 1,273 | ||
Defined Benefit Plan, Equity Securities, Non-US [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 1,273 | ||
Defined Benefit Plan, Equity Securities, Non-US [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Defined Benefit Plan, Equity Securities, Non-US [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Hedge Funds, Equity [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 900 | ||
Hedge Funds, Equity [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 900 | ||
Hedge Funds, Equity [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Hedge Funds, Equity [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Other Security Investments [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 759 | ||
Other Security Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 310 | ||
Other Security Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | 449 | ||
Other Security Investments [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 46,086 | 46,827 | 0 |
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | |||
Net (loss) income | $ (174,543) | $ (6,737) | $ 219,480 |
Less: net (loss) income attributable to noncontrolling interests | (24,146) | (3,386) | 61,939 |
Net (loss) income attributable to Red Rock Resorts, Inc. | (150,397) | (3,351) | 157,541 |
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | |||
Net (loss) income attributable to Red Rock Resorts, Inc. | (150,397) | (3,351) | 157,541 |
Effect of dilutive securities | 0 | 0 | (48,864) |
Net income attributable to Parent, diluted | $ (150,397) | $ (3,351) | $ 206,405 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Basic | 70,542 | 69,565 | 69,115 |
Effect of dilutive securities | 0 | 0 | 47,744 |
Diluted | 70,542 | 69,565 | 116,859 |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,311 | 7,397 | 1,966 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 369 | 712 | 64 |
Leases Lessee Disclosures (Deta
Leases Lessee Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 4,995 | $ 5,185 | |
Short-term lease cost | 1,895 | 7,073 | |
Variable lease cost | 17,400 | 28,749 | |
Total lease expense | 24,290 | 41,007 | $ 20,200 |
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities, current portion | 2,936 | $ 3,646 | |
Total operating lease liabilities | $ 13,886 | ||
Weighted-average remaining lease term - operating leases (years) | 36 years 1 month 6 days | 33 years 6 months | |
Weighted-average discount rate - operating leases | 5.32% | 5.40% | |
Operating cash flows from operating leases | $ 4,387 | $ 5,842 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 1,336 | 0 | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 4,222 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 1,667 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 871 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 736 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 537 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 42,670 | ||
Lessee, Operating Lease, Liability, Payments, Due | 50,703 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (36,817) | ||
Other Assets | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | 11,483 | 13,099 | |
Other Current Liabilities | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities, current portion | 2,936 | 3,646 | |
Other Noncurrent Liabilities | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities, noncurrent portion | 10,950 | 10,675 | |
Other Liabilities | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease liabilities | $ 13,886 | $ 14,321 |
Leases Lessor Disclosures (Deta
Leases Lessor Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessor, Lease, Description [Line Items] | |||
Revenue from tenant leases | $ 13,100 | $ 24,200 | $ 24,300 |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |||
Lessor, Operating Lease, Payments to be Received, Next Twelve Months | 7,360 | ||
Lessor, Operating Lease, Payments to be Received, Two Years | 5,416 | ||
Lessor, Operating Lease, Payments to be Received, Three Years | 4,072 | ||
Lessor, Operating Lease, Payments to be Received, Four Years | 3,007 | ||
Lessor, Operating Lease, Payments to be Received, Five Years | 662 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 2,861 | ||
Lessor, Operating Lease, Payments to be Received | $ 23,378 | ||
Minimum [Member] | |||
Lessor, Lease, Description [Line Items] | |||
Lessor operating leases - term of contract | 1 year | ||
Maximum [Member] | |||
Lessor, Lease, Description [Line Items] | |||
Lessor operating leases - term of contract | 20 years |
Segments (Details)
Segments (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 1,182,445 | $ 1,856,534 | $ 1,681,030 | |
Net (loss) income | (174,543) | (6,737) | 219,480 | |
Depreciation and amortization | 231,391 | 222,211 | 180,255 | |
Share-based compensation | 10,886 | 16,848 | 11,289 | |
Write-downs and other charges, net | 36,537 | 82,123 | 34,650 | |
Tax receivable agreement liability adjustment | (15) | (97) | (90,638) | |
Interest expense, net | 128,465 | 156,679 | 143,099 | |
Gain (loss) on extinguishment/modification of debt, net | (240) | 19,939 | 0 | |
Change in fair value of derivative instruments | 21,590 | 19,467 | (12,415) | |
(Provision) benefit for income tax | (114,081) | 1,734 | (23,875) | |
Other | 333 | 316 | 633 | |
Adjusted EBITDA | [1] | 368,485 | 509,015 | 508,962 |
Assets | 3,739,954 | 4,114,187 | ||
Capital expenditures | 58,496 | 353,269 | 579,287 | |
Casino | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 764,255 | 984,253 | 940,483 | |
Food and beverage | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 192,899 | 481,558 | 381,197 | |
Room | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 87,035 | 192,305 | 170,824 | |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 56,279 | 106,773 | 100,912 | |
Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 81,977 | 91,645 | 87,614 | |
Las Vegas Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 1 | |||
Net revenues | $ 1,094,442 | 1,758,760 | 1,588,003 | |
Adjusted EBITDA | 335,134 | 472,921 | 474,503 | |
Assets | 3,376,296 | 3,637,893 | ||
Capital expenditures | 58,500 | 353,300 | 579,300 | |
Las Vegas Operations [Member] | Casino | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 764,255 | 984,253 | 940,483 | |
Las Vegas Operations [Member] | Food and beverage | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 192,899 | 481,558 | 381,197 | |
Las Vegas Operations [Member] | Room | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 87,035 | 192,305 | 170,824 | |
Las Vegas Operations [Member] | Other | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | [2] | 49,716 | 100,073 | 94,894 |
Las Vegas Operations [Member] | Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 537 | 571 | 605 | |
Native American Management [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 1 | |||
Adjusted EBITDA | $ 77,440 | 85,562 | 80,795 | |
Assets | 31,146 | 31,573 | ||
Native American Management [Member] | Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 81,440 | 91,074 | 87,009 | |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,175,882 | 1,849,834 | 1,675,012 | |
Adjusted EBITDA | 412,574 | 558,483 | 555,298 | |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (44,089) | (49,468) | (46,336) | |
Assets | 332,512 | 444,721 | ||
Information technology and data processing costs | 14,500 | 18,100 | 17,100 | |
Corporate, Non-Segment [Member] | Other | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 6,563 | $ 6,700 | $ 6,018 | |
[1] | Adjusted EBITDA includes net (loss) income plus depreciation and amortization, share-based compensation, write-downs and other charges, net (including net losses on asset disposals, severance, redevelopment and preopening expenses, business innovation and technology enhancements), tax receivable agreement liability adjustment, interest expense, net, (gain) loss on extinguishment/modification of debt, net, change in fair value of derivative instruments, provision (benefit) for income tax and other. | |||
[2] | Includes tenant lease revenue which is accounted for under the lease accounting guidance. See Note 16. |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 39,856 | $ 39,968 | $ 57,607 |
Additions (deductions) | 120,614 | (112) | (17,639) |
Balance at End of Year | $ 160,470 | $ 39,856 | $ 39,968 |