Quarterly report pursuant to Section 13 or 15(d)

NEW ACCOUNTING PRONOUNCEMENTS

v3.10.0.1
NEW ACCOUNTING PRONOUNCEMENTS
 9 Months Ended
Sep. 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 to 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 nine-months ended September 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 September 30, 2018
Statement of Operations
As Reported
 
Balances without Adoption of ASC 606
 
Effect of Change
Higher/(Lower)
Revenues
 
 
 
 
 
Casino
$
30,767

 
$
39,837

 
$
(9,070
)
Food and beverage
9,371

 
9,293

 
78

Hotel
2,583

 
2,369

 
214

Promotional allowances
—

 
(8,315
)
 
8,315

 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Casino
11,934

 
20,239

 
(8,305
)
Food and beverage
10,301

 
3,337

 
6,964

Hotel
2,708

 
363

 
2,345

Other operations
958

 
460

 
498

Selling, general and administrative
11,769

 
13,736

 
(1,967
)
Operating income
3,734

 
3,732

 
2

Income before income taxes
1,684

 
1,682

 
2

Net income
1,565

 
1,563

 
2


(In thousands, unaudited)
 
 
 
 
 
 
Nine Months Ended September 30, 2018
Statement of Operations
As Reported
 
Balances without Adoption of ASC 606
 
Effect of Change
Higher/(Lower)
Revenues
 
 
 
 
 
Casino
$
86,369

 
$
111,063

 
$
(24,694
)
Food and beverage
26,093

 
25,877

 
216

Hotel
7,448

 
6,828

 
620

Promotional allowances
—

 
(22,968
)
 
22,968

 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
Casino
34,300

 
57,184

 
(22,884
)
Food and beverage
29,184

 
9,527

 
19,657

Hotel
7,847

 
981

 
6,866

Other operations
2,306

 
1,287

 
1,019

Selling, general and administrative
36,193

 
41,718

 
(5,525
)
Operating income
6,280

 
6,303

 
(23
)
Loss before income taxes
(3,026
)
 
(3,003
)
 
(23
)
Net loss
(3,382
)
 
(3,359
)
 
(23
)


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.