| FINANCIAL REPORTING BY BUSINESS SEGMENTS |
15. FINANCIAL REPORTING BY BUSINESS SEGMENTS: The Company’s operations are organized into the following principal business segments: | ● | Hospitality, which includes the Gaylord Hotels properties, JW Marriott Hill Country, JW Marriott Desert Ridge (effective June 10, 2025), Grande Lakes Orlando (effective September 1, 2026), the Inn at Opryland and the AC Hotel; |
| ● | Entertainment, which includes the OEG business, specifically the Grand Ole Opry, the Ryman Auditorium, WSM-AM, Ole Red, Category 10, Block 21, Southern Entertainment, and beginning in the first quarter of 2026, the Ascend Amphitheater and the CCNB Amphitheatre; and |
| ● | Corporate and Other, which includes operating and general and administrative expenses related to the overall management of the Company which are not allocated to the other reportable segments. |
The Company’s chief operating decision maker (“CODM”) is comprised of the Company’s chief executive officer and the Company’s chief financial officer. The CODM uses segment operating income (loss) to evaluate the performance of each segment and to allocate resources. The accounting policies for each segment are the same as those described in Note 1, “Description of the Business and Summary of Significant Accounting Policies,” to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The Company does not have intersegment sales or transfers. The following information is derived directly from the segments’ internal financial reports used by the CODM for corporate management purposes (amounts in thousands): | | | | | | | | | | | | | | | For the Three Months Ended September 30, 2026 | | | Hospitality | | Entertainment | | Corporate and Other | | Total | Revenues | | $ | 562,812 | | $ | 92,989 | | $ | — | | $ | 655,801 | Expenses: | | | | | | | | | | | | | Rooms | | | 54,481 | | | | | | | | | 54,481 | Food and beverage | | | 158,134 | | | | | | | | | 158,134 | Other hotel expenses (1) | | | 156,829 | | | | | | | | | 156,829 | Management fees | | | 19,946 | | | | | | | | | 19,946 | Employment costs | | | | | | 29,504 | | | | | | 29,504 | Cost of goods sold | | | | | | 12,627 | | | | | | 12,627 | Contract services | | | | | | 9,747 | | | | | | 9,747 | Non-income taxes and insurance | | | | | | 6,231 | | | | | | 6,231 | Preopening costs | | | | | | 897 | | | | | | 897 | Impairment charges | | | | | | 4,858 | | | | | | 4,858 | Other segment expenses (1) | | | | | | 12,681 | | | 12,369 | | | 25,050 | Depreciation and amortization | | | 73,447 | | | 9,460 | | | 256 | | | 83,163 | Operating income (loss) | | $ | 99,975 | | $ | 6,984 | | $ | (12,625) | | $ | 94,334 | Interest expense | | | (3) | | | (8,261) | | | (60,011) | | | (68,275) | Interest income | | | | | | | | | | | | 5,096 | Other gains and (losses), net | | | | | | | | | | | | 2,074 | Income before income taxes | | | | | | | | | | | $ | 33,229 |
| | | | | | | | | | | | | | | For the Three Months Ended September 30, 2025 | | | Hospitality | | Entertainment | | Corporate and Other | | Total | Revenues | | $ | 500,869 | | $ | 91,589 | | $ | — | | $ | 592,458 | Expenses: | | | | | | | | | | | | | Rooms | | | 48,668 | | | | | | | | | 48,668 | Food and beverage | | | 139,961 | | | | | | | | | 139,961 | Other hotel expenses (1) | | | 144,882 | | | | | | | | | 144,882 | Management fees | | | 16,551 | | | | | | | | | 16,551 | Employment costs | | | | | | 28,736 | | | | | | 28,736 | Cost of goods sold | | | | | | 13,492 | | | | | | 13,492 | Contract services | | | | | | 9,713 | | | | | | 9,713 | Non-income taxes and insurance | | | | | | 3,806 | | | | | | 3,806 | Preopening costs | | | | | | 1,289 | | | | | | 1,289 | Other segment expenses (1) | | | | | | 12,188 | | | 10,062 | | | 22,250 | Loss on sale of assets | | | | | | 1,296 | | | | | | 1,296 | Depreciation and amortization | | | 63,729 | | | 9,242 | | | 231 | | | 73,202 | Operating income (loss) | | $ | 87,078 | | $ | 11,827 | | $ | (10,293) | | $ | 88,612 | Interest expense | | | (11) | | | (9,572) | | | (55,290) | | | (64,873) | Interest income | | | | | | | | | | | | 4,836 | Loss on extinguishment of debt | | | | | | | | | | | | (380) | Loss from unconsolidated joint ventures | | | | | | | | | | | | (37) | Other gains and (losses), net | | | | | | | | | | | | 2,168 | Income before income taxes | | | | | | | | | | | $ | 30,326 |
| | | | | | | | | | | | | | | For the Nine Months Ended September 30, 2026 | | | Hospitality | | Entertainment | | Corporate and Other | | Total | Revenues | | $ | 1,753,165 | | $ | 316,186 | | $ | — | | $ | 2,069,351 | Expenses: | | | | | | | | | | | | | Rooms | | | 157,656 | | | | | | | | | 157,656 | Food and beverage | | | 475,417 | | | | | | | | | 475,417 | Other hotel expenses (1) | | | 451,711 | | | | | | | | | 451,711 | Management fees | | | 63,003 | | | | | | | | | 63,003 | Employment costs | | | | | | 93,024 | | | | | | 93,024 | Cost of goods sold | | | | | | 38,970 | | | | | | 38,970 | Contract services | | | | | | 43,172 | | | | | | 43,172 | Non-income taxes and insurance | | | | | | 24,260 | | | | | | 24,260 | Preopening costs | | | | | | 1,722 | | | | | | 1,722 | Impairment charges | | | | | | 4,858 | | | | | | 4,858 | Other segment expenses (1) | | | | | | 38,036 | | | 34,899 | | | 72,935 | Depreciation and amortization | | | 206,673 | | | 28,503 | | | 772 | | | 235,948 | Operating income (loss) | | $ | 398,705 | | $ | 43,641 | | $ | (35,671) | | $ | 406,675 | Interest expense | | | (16) | | | (24,756) | | | (171,497) | | | (196,269) | Interest income | | | | | | | | | | | | 14,009 | Loss on extinguishment of debt | | | | | | | | | | | | (2,200) | Income from unconsolidated joint ventures | | | | | | | | | | | | 4 | Other gains and (losses), net | | | | | | | | | | | | 1,453 | Income before income taxes | | | | | | | | | | | $ | 223,672 |
| | | | | | | | | | | | | | | For the Nine Months Ended September 30, 2025 | | | Hospitality | | Entertainment | | Corporate and Other | | Total | Revenues | | $ | 1,514,810 | | $ | 324,443 | | $ | — | | $ | 1,839,253 | Expenses: | | | | | | | | | | | | | Rooms | | | 142,195 | | | | | | | | | 142,195 | Food and beverage | | | 414,252 | | | | | | | | | 414,252 | Other hotel expenses (1) | | | 399,394 | | | | | | | | | 399,394 | Management fees | | | 52,930 | | | | | | | | | 52,930 | Employment costs | | | | | | 91,107 | | | | | | 91,107 | Cost of goods sold | | | | | | 43,410 | | | | | | 43,410 | Contract services | | | | | | 51,942 | | | | | | 51,942 | Non-income taxes and insurance | | | | | | 21,933 | | | | | | 21,933 | Preopening costs | | | | | | 1,474 | | | | | | 1,474 | Other segment expenses (1) | | | | | | 39,689 | | | 31,591 | | | 71,280 | Loss on sale of assets | | | | | | 1,296 | | | | | | 1,296 | Depreciation and amortization | | | 175,232 | | | 27,954 | | | 696 | | | 203,882 | Operating income (loss) | | $ | 330,807 | | $ | 45,638 | | $ | (32,287) | | $ | 344,158 | Interest expense | | | (39) | | | (27,979) | | | (149,672) | | | (177,690) | Interest income | | | | | | | | | | | | 15,878 | Loss on extinguishment of debt | | | | | | | | | | | | (2,922) | Loss from unconsolidated joint ventures | | | | | | | | | | | | (66) | Other gains and (losses), net | | | | | | | | | | | | 1,864 | Income before income taxes | | | | | | | | | | | $ | 181,222 |
| (1) | Other segment expenses include:
Hospitality segment – administrative employment costs, utilities, property taxes, supplies, advertising, maintenance and consulting expenses
Entertainment segment – advertising, utilities, maintenance and certain overhead expenses
Corporate and other – senior management salaries and benefits, legal, human resources, accounting, pension, information technology, consulting and other administrative expenses |
| | | | | | | | | September 30, | | December 31, | | | 2026 | | 2025 | Total assets: | | | | | | | Hospitality | | $ | 6,484,754 | | $ | 4,996,594 | Entertainment | | | 792,438 | | | 745,755 | Corporate and Other | | | 364,147 | | | 438,834 | Total assets | | $ | 7,641,339 | | $ | 6,181,183 |
The following table represents capital expenditures by segment for the periods presented (amounts in thousands): | | | | | | | | | | Nine Months Ended | | | | September 30, | | | | 2026 | | 2025 | | Hospitality | | $ | 312,384 | | $ | 229,726 | | Entertainment | | | 50,350 | | | 22,154 | | Corporate and Other | | | 126 | | | 223 | | Total capital expenditures | | $ | 362,860 | | $ | 252,103 | |
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