Ballys Corp
For the period ended Jun 30, 2024. Filed Aug 2, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 2, 2024
Contents
Restructuring Expense
- RESTRUCTURING EXPENSE
On January 18, 2023, the Company announced a restructuring plan of the Interactive business intended to reduce operating costs and continue the Company’s commitment to achieving profitable operations in its North America Interactive segment which included a reduction of the Company’s then current Interactive workforce by up to 15 percent. In furtherance of and as an expansion of the January 2023 restructuring plan, on October 20, 2023, the Company announced further restructuring initiatives targeted at reshaping the technology utilized by its Interactive segments.
On January 29, 2024, the Company announced that it will cease its operations at the Tropicana Las Vegas on April 2, 2024 in order to redevelop the site with a state-of-the-art integrated resort and ballpark. As a result of the closure, the Company incurred restructuring charges representing employee related severance costs and accelerated depreciation of certain property and equipment.
The components of restructuring charges by segment for the three and six months ended June 30, 2024 and 2023 are summarized as follows (in thousands):
| Three Months EndedJune 30, | Six Months EndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Severance and employee related benefits(1) | ||||
| Casinos & Resorts | $348 | $— | $20,003 | — |
| International Interactive | 3 | 1,595 | 55 | 10,927 |
| North America Interactive | — | 1,789 | (1,479) | 7,647 |
| Other | 25 | 56 | 410 | 1,688 |
| Total severance and employee related benefits | 376 | 3,440 | 18,989 | 20,262 |
| Accelerated depreciation expense(2) | — | — | 80,117 | — |
| Total restructuring charges | $376 | 3,440 | 99,106 | 20,262 |
(1) Included within “General and administrative” of the condensed consolidated statements of operations.
(2) Included within “Depreciation and amortization” of the Casinos & Resorts reportable segment within the condensed consolidated statements of operations.
The changes in the Company’s restructuring related liabilities for the six months ended June 30, 2024 is as follows:
| (in thousands) | |
|---|---|
| Balance as of December 31, 2023 | $5,291 |
| Charges | 18,989 |
| Payments | (21,927) |
| Effect of foreign exchange | (849) |
| Balance as of June 30, 2024 | $1,504 |
The restructuring liability as of June 30, 2024 and December 31, 2023 is included within “Accrued and other current liabilities” on the condensed consolidated balance sheets.
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