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Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2010	Dec. 31, 2009
Current assets
Cash and cash equivalents	$ 355,442	$ 713,118
Receivables, net of allowance for doubtful accounts of $3,021 and $3,548 at September 30, 2010 and December 31, 2009, respectively	43,917	46,672
Insurance receivable		33,494
Prepaid expenses	42,841	70,947
Deferred income taxes	21,479	23,619
Other current assets	78,215	41,021
Total current assets	541,894	928,871
Property and equipment, net	1,945,538	1,837,504
Other assets
Investment in and advances to unconsolidated affiliates	70,936	26,305
Goodwill	1,375,948	1,379,961
Other intangible assets	420,304	386,531
Debt issuance costs, net of accumulated amortization of $42,193 and $39,703 at September 30, 2010 and December 31, 2009, respectively	30,782	40,889
Other assets	104,277	112,555
Total other assets	2,002,247	1,946,241
Total assets	4,489,679	4,712,616
Current liabilities
Current maturities of long-term debt	2,970	86,071
Accounts payable	19,867	19,850
Accrued expenses	89,605	110,108
Accrued interest	32,408	61,786
Accrued salaries and wages	66,213	65,608
Gaming, pari-mutuel, property, and other taxes	51,945	38,943
Insurance financing	3,233	6,752
Other current liabilities	42,686	41,138
Total current liabilities	308,927	430,256
Long-term liabilities
Long-term debt, net of current maturities	2,098,105	2,248,706
Deferred income taxes	126,029	127,107
Noncurrent tax liabilities	38,856	46,702
Other noncurrent liabilities	8,970	7,769
Total long-term liabilities	2,271,960	2,430,284
Penn National Gaming, Inc. and subsidiaries shareholders' equity:
Preferred stock ($.01 par value, 1,000,000 shares authorized, 12,275 and 12,500 shares issued and outstanding at September 30, 2010 and December 31, 2009, respectively)
Common stock ($.01 par value, 200,000,000 shares authorized, 77,906,575 and 78,972,256 shares issued at September 30, 2010 and December 31, 2009, respectively)	774	786
Additional paid-in capital	1,430,332	1,480,476
Retained earnings	491,072	397,407
Accumulated other comprehensive loss	(13,386)	(26,028)
Total Penn National Gaming, Inc. and subsidiaries shareholders' equity	1,908,792	1,852,641
Noncontrolling interests		(565)
Total shareholders' equity	1,908,792	1,852,076
Total liabilities and shareholders' equity	$ 4,489,679	$ 4,712,616

v3.19.3

Basis of Presentation

9 Months Ended

Sep. 30, 2010

1. Basis of Presentation

The accompanying unaudited consolidated financial statements of Penn National Gaming, Inc. (“Penn”) and its subsidiaries (collectively, the “Company”) have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The notes to the consolidated financial statements contained in the Annual Report on Form 10-K for the year ended December p;nbsp;31, 2009 should be read in conjunction with these consolidated financial statements. For purposes of comparability, certain prior year amounts have been reclassified to conform to the current year presentation. Operating results for the nine months ended Septembernbsp;30, 2010 are not necessarily indicative of the results that maynbsp;be expected for the year ending Decembernbsp;31, 2010./font/p/td/tr/table

- References

No definition available.

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2010	Dec. 31, 2009
Consolidated Balance Sheets
Receivables, allowance for doubtful accounts (in dollars)	$ 3,021	$ 3,548
Debt issuance costs, accumulated amortization (in dollars)	$ 42,193	$ 39,703
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	12,275	12,500
Preferred stock, shares outstanding	12,275	12,500
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	77,906,575	78,972,256

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2010	Sep. 30, 2009
Revenues
Gaming	$ 582,307	$ 565,483	$ 1,668,870	$ 1,651,776
Food, beverage and other	85,787	87,404	250,971	258,273
Management service fee	4,363	4,239	11,569	10,946
Gross revenues	672,457	657,126	1,931,410	1,920,995
Less promotional allowances	(34,201)	(36,700)	(102,520)	(107,526)
Net revenues	638,256	620,426	1,828,890	1,813,469
Operating expenses
Gaming	309,991	303,420	890,473	887,602
Food, beverage and other	66,857	69,100	196,705	199,158
General and administrative	102,164	110,116	303,633	302,587
Depreciation and amortization	53,842	50,055	157,675	141,427
Impairment losses	816	120	31,542	11,809
Empress Casino Hotel fire	(5,876)	211	(5,662)	5,942
Total operating expenses	527,794	533,022	1,574,366	1,548,525
Income from operations	110,462	87,404	254,524	264,944
Other income (expenses)
Interest expense	(32,412)	(36,785)	(99,615)	(97,874)
Interest income	398	956	1,739	5,650
Loss from unconsolidated affiliates	(3,925)	(36)	(5,762)	(755)
Loss on early extinguishment of debt		(3,599)	(519)	(3,599)
Other	8,259	(2,560)	8,245	2,419
Total other expenses	(27,680)	(42,024)	(95,912)	(94,159)
Income from operations before income taxes	82,782	45,380	158,612	170,785
Taxes on income	34,437	24,029	67,140	80,293
Net income including noncontrolling interests	48,345	21,351	91,472	90,492
Less: Net loss attributable to noncontrolling interests			(2,193)
Net income attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries	$ 48,345	$ 21,351	$ 93,665	$ 90,492
Earnings per common share attributable to the shareholders of Penn National Gaming, Inc. and subsidiaries:
Basic earnings per common share (in dollars per share)	$ 0.51	$ 0.22	$ 0.97	$ 0.94
Diluted earnings per common share (in dollars per share)	$ 0.46	$ 0.20	$ 0.88	$ 0.85

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2010	Sep. 30, 2009
Consolidated Statements of Changes in Shareholders' Equity
Stock option activity, tax benefit	$ 402	$ 1,885
Change in fair value of interest rate swap contracts, income taxes	$ 6,732	$ 5,451

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2010	Sep. 30, 2009
Operating activities
Net income including noncontrolling interests	$ 91,472	$ 90,492
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization	157,675	141,427
Amortization of items charged to interest expense and interest income	9,520	7,338
Loss (gain) on sale of fixed assets	923	(340)
Loss from unconsolidated affiliates	5,762	755
Loss on early extinguishment of debt	519	3,599
Empress Casino Hotel fire		5,064
Loss on police services contract termination at Hollywood Casino Aurora	6,624
Gain on accelerated payment of other long-term obligations		(1,305)
Gain on sale of corporate debt securities		(6,598)
Deferred income taxes	(5,631)	(13,091)
Charge for stock-based compensation	19,757	21,904
Impairment losses	31,542	11,689
(Increase) decrease, net of businesses acquired
Accounts receivable	(447)	(18,331)
Insurance receivable	28,674
Prepaid expenses and other current assets	31,665	(1,520)
Other assets	11,894	2,645
Increase (decrease), net of businesses acquired
Accounts payable	2,606	(2,648)
Accrued expenses	(21,345)	(4,065)
Accrued interest	(11,058)	(4,307)
Accrued salaries and wages	605	12,155
Gaming, pari-mutuel, property and other taxes	13,002	6,278
Income taxes		13,184
Other current and noncurrent liabilities	2,749	8,402
Other noncurrent tax liabilities	(6,802)	4,109
Net cash provided by operating activities	369,706	276,836
Investing activities
Expenditures for property and equipment	(285,284)	(227,575)
Proceeds from sale of property and equipment	1,425	2,120
Proceeds from sale of corporate debt securities		50,602
Proceeds from Empress Casino Hotel fire	4,821	17,000
Investment in joint ventures	(50,266)	(12,500)
Increase in cash in escrow	(30,264)	(25,000)
Acquisition of businesses and gaming licenses	(55,895)
Net cash used in investing activities	(415,463)	(195,353)
Financing activities
Proceeds from exercise of options	3,989	4,299
Repurchase of common stock	(35,858)
Repurchase of preferred stock	(11,200)
Proceeds from issuance of long-term debt, net of issuance costs	56,733	628,108
Principal payments on long-term debt	(297,466)	(697,650)
Proceeds from insurance financing	6,222	12,727
Payments on insurance financing	(9,741)	(12,721)
Repurchase of noncontrolling interest	(25,000)
Tax benefit from stock options exercised	402	1,885
Net cash used in financing activities	(311,919)	(63,352)
Net (decrease) increase in cash and cash equivalents	(357,676)	18,131
Cash and cash equivalents at beginning of year	713,118	746,278
Cash and cash equivalents at end of period	355,442	764,409
Supplemental disclosure
Interest expense paid	104,969	99,692
Income taxes paid	$ 50,357	$ 58,741