Quarterly report pursuant to Section 13 or 15(d)

NEW ACCOUNTING PRONOUNCEMENTS

v3.10.0.1
NEW ACCOUNTING PRONOUNCEMENTS
 6 Months Ended
Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]  
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS
 
New Accounting Pronouncements Implemented

Statement of Cash Flows. In January 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments,” otherwise referred as “ASU 2016-15.” ASU 2016-15 amends the guidance of Accounting Standards Codification (“ASC”) Topic 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of ASU 2016-15 is to reduce the diversity in practice that has resulted from the lack of consistent principles, specifically clarifying the guidance on eight cash flow issues. The adoption did not and is not expected to have a material impact on our consolidated financial statements.

Revenue from Contracts with Customers. In January 2018, the Company adopted ASC 606, Revenue from Contracts with Customers (“ASC 606”) using the modified retrospective method, which applies to all contracts that are written, oral or implied by customary business practices.

The comparative information as of and for the three and six months ended June 30, 2017 has not been restated and continues to be reported under the accounting standards in effect for that period. The adoption of ASC 606 for 2018 has not and is not expected to have an aggregate material impact on operating income, net income, or cash flows on an ongoing basis.

The impact of adoption on our consolidated statement of operations is shown below. Note that we did not present any balance sheet effects, as the amounts are immaterial.
(In thousands, unaudited)
 
 
 
 
 
 
Three Months Ended June 30, 2018
Statement of Operations
As Reported
 
Balances without Adoption of ASC 606
 
Effect of Change
Higher/(Lower)
Revenues
 
 
 
 
 
Casino
$
28,632

 
$
36,713

 
$
(8,081
)
Food and beverage
8,783

 
8,704

 
79

Hotel
2,582

 
2,376

 
206

Promotional allowances
—

 
(7,733
)
 
7,733

 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Casino
11,282

 
18,675

 
(7,393
)
Food and beverage
9,757

 
3,124

 
6,633

Hotel
2,652

 
389

 
2,263

Other operations
834

 
505

 
329

Selling, general and administrative
12,462

 
14,352

 
(1,890
)
Operating income
2,003

 
2,008

 
(5
)
Loss before income taxes
(543
)
 
(538
)
 
(5
)
Net loss
(661
)
 
(656
)
 
(5
)

(In thousands, unaudited)
 
 
 
 
 
 
Six Months Ended June 30, 2018
Statement of Operations
As Reported
 
Balances without Adoption of ASC 606
 
Effect of Change
Higher/(Lower)
Revenues
 
 
 
 
 
Casino
$
55,602

 
$
71,226

 
$
(15,624
)
Food and beverage
16,722

 
16,584

 
138

Hotel
4,865

 
4,459

 
406

Promotional allowances
—

 
(14,653
)
 
14,653

 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Casino
22,366

 
36,945

 
(14,579
)
Food and beverage
18,883

 
6,190

 
12,693

Hotel
5,139

 
618

 
4,521

Other operations
1,348

 
827

 
521

Selling, general and administrative
24,424

 
27,982

 
(3,558
)
Operating income
2,546

 
2,571

 
(25
)
Loss before income taxes
(4,710
)
 
(4,685
)
 
(25
)
Net loss
(4,947
)
 
(4,922
)
 
(25
)


New Accounting Pronouncements to be Implemented

Leases. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” (“ASU 2016-02”), which replaces the existing guidance in ASC 840, Leases. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. ASU 2016-02 requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements and footnote disclosures.

Management believes that there are no other recently-issued accounting standards not yet effective that are currently likely to have a material impact on our financial statements.