SEAWORLD ENTERTAINMENT, INC., 10-Q filed on 11/13/2014
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2014
Nov. 10, 2014
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Sep. 30, 2014 
 
Document Fiscal Year Focus
2014 
 
Document Fiscal Period Focus
Q3 
 
Trading Symbol
SEAS 
 
Entity Registrant Name
SeaWorld Entertainment, Inc. 
 
Entity Central Index Key
0001564902 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Non-accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
89,997,624 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Current assets:
 
 
Cash and cash equivalents
$ 115,192 
$ 116,841 
Accounts receivable, net
43,631 
41,509 
Inventories
36,766 
36,209 
Prepaid expenses and other current assets
18,096 
19,613 
Deferred tax assets, net
8,085 
28,887 
Total current assets
221,770 
243,059 
Property and equipment, at cost
2,580,453 
2,485,805 
Accumulated depreciation
(829,280)
(714,305)
Property and equipment, net
1,751,173 
1,771,500 
Goodwill
335,610 
335,610 
Trade names, net
164,552 
163,508 
Other intangible assets, net
25,356 
27,843 
Other assets
32,956 
35,890 
Total assets
2,531,417 
2,577,410 
Current liabilities:
 
 
Accounts payable
80,305 
98,500 
Current maturities on long-term debt
14,050 
14,050 
Accrued salaries, wages and benefits
12,401 
23,996 
Deferred revenue
92,264 
82,945 
Dividends payable
18,647 
17,939 
Other accrued expenses
30,685 
15,264 
Total current liabilities
248,352 
252,694 
Long-term debt
1,592,369 
1,632,531 
Deferred tax liabilities, net
50,230 
25,670 
Other liabilities
20,349 
18,488 
Total liabilities
1,911,300 
1,929,383 
Commitments and contingencies (Note 10)
   
   
Stockholders' Equity:
 
 
Preferred stock, $0.01 par value-authorized, 100,000,000 shares, no shares issued or outstanding at September 30, 2014 and December 31, 2013
   
   
Common stock, $0.01 par value-authorized, 1,000,000,000 shares; 89,981,272 shares issued at September 30, 2014 and 89,900,453 shares issued at December 31, 2013
900 
899 
Additional paid-in capital
655,108 
689,394 
Accumulated other comprehensive income
18 
11 
Retained earnings
58,962 
1,886 
Treasury stock, at cost (3,250,000 shares at September 30, 2014 and 1,500,000 shares at December 31, 2013)
(94,871)
(44,163)
Total stockholders' equity
620,117 
648,027 
Total liabilities and stockholders' equity
$ 2,531,417 
$ 2,577,410 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Statement of Financial Position [Abstract]
 
 
Preferred stock, par value
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
100,000,000 
100,000,000 
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
1,000,000,000 
1,000,000,000 
Common stock, shares issued
89,981,272 
89,900,453 
Treasury stock, shares
3,250,000 
1,500,000 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Net revenues:
 
 
 
 
Admissions
$ 306,495 
$ 340,183 
$ 693,144 
$ 747,610 
Food, merchandise and other
189,339 
198,206 
420,131 
440,681 
Total revenues
495,834 
538,389 
1,113,275 
1,188,291 
Costs and expenses:
 
 
 
 
Cost of food, merchandise and other revenues
38,219 
40,422 
88,630 
93,224 
Operating expenses (exclusive of depreciation and amortization shown separately below)
200,891 
202,625 
557,993 
573,892 
Selling, general and administrative
50,438 
47,426 
154,078 
149,581 
Termination of advisory agreement
 
 
 
50,072 
Secondary offering costs
 
 
747 
 
Depreciation and amortization
44,371 
42,322 
128,733 
124,154 
Total costs and expenses
333,919 
332,795 
930,181 
990,923 
Operating income
161,915 
205,594 
183,094 
197,368 
Other income, net
(56)
(13)
(84)
(193)
Interest expense
20,857 
20,211 
61,087 
70,439 
Loss on early extinguishment of debt and write-off of discounts and deferred financing costs
461 
 
461 
29,858 
Income before income taxes
140,653 
185,396 
121,630 
97,264 
Provision for income taxes
53,477 
64,656 
46,265 
32,375 
Net income
87,176 
120,740 
75,365 
64,889 
Other comprehensive income:
 
 
 
 
Unrealized gain (loss) on derivatives, net of tax
1,087 
(1,127)
1,453 
Comprehensive income
$ 88,263 
$ 119,613 
$ 75,372 
$ 66,342 
Earnings per share:
 
 
 
 
Net income per share, basic
$ 1.01 
$ 1.35 
$ 0.86 
$ 0.75 
Net income per share, diluted
$ 1.00 
$ 1.34 
$ 0.86 
$ 0.74 
Weighted average common shares outstanding:
 
 
 
 
Basic, shares
86,715 
89,610 
87,329 
86,867 
Diluted, shares
87,024 
90,206 
87,648 
87,531 
Cash dividends declared per share:
 
 
 
 
Cash dividends declared per share
$ 0.21 
$ 0.20 
$ 0.62 
$ 0.40 
Condensed Consolidated Statements of Changes in Stockholders' Equity (USD $)
In Thousands, except Share data
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income [Member]
Treasury Stock, at Cost [Member]
Beginning Balance at Dec. 31, 2013
$ 648,027 
$ 899 
$ 689,394 
$ 1,886 
$ 11 
$ (44,163)
Beginning Balance, shares at Dec. 31, 2013
89,900,453 
89,900,453 
 
 
 
 
Equity-based compensation
1,905 
 
1,905 
 
 
 
Unrealized gain on derivatives, net of tax expense of $4
 
 
 
 
Vesting of restricted shares
 
(1)
 
 
 
Vesting of restricted shares, shares
 
84,969 
 
 
 
 
Shares withheld for tax withholdings
(134)
 
(134)
 
 
 
Shares withheld for tax withholdings, shares
 
(4,150)
 
 
 
 
Cash dividends declared to stockholders ($0.62 per share)
(54,345)
 
(36,056)
(18,289)
 
 
Repurchase of 1,750,000 shares of treasury stock, at cost
(50,708)
 
 
 
 
(50,708)
Net income
75,365 
 
 
75,365 
 
 
Ending Balance at Sep. 30, 2014
$ 620,117 
$ 900 
$ 655,108 
$ 58,962 
$ 18 
$ (94,871)
Ending Balance, shares at Sep. 30, 2014
89,981,272 
89,981,272 
 
 
 
 
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Cash dividends declared per share
$ 0.62 
Repurchase of treasury stock, Shares
1,750,000 
Accumulated Other Comprehensive Income [Member]
 
Unrealized loss on derivatives tax benefit expense
$ 4 
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash Flows From Operating Activities:
 
 
Net income
$ 75,365 
$ 64,889 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
128,733 
124,154 
Amortization of debt issuance costs and discounts
7,068 
8,508 
Loss on sale or disposal of assets
1,694 
8,129 
Loss on early extinguishment of debt and write-off of discounts and deferred financing costs
461 
29,858 
Deferred income tax provision
45,356 
32,375 
Equity-based compensation
1,905 
4,704 
Changes in assets and liabilities:
 
 
Accounts receivable
(3,091)
(13,432)
Inventories
(557)
(1,299)
Prepaid expenses and other current assets
1,890 
(67)
Accounts payable
(3,746)
(4,029)
Accrued salaries, wages and benefits
(11,595)
(11,788)
Deferred revenue
9,191 
16,259 
Other accrued expenses
14,162 
15,168 
Other assets and liabilities
3,103 
(445)
Net cash provided by operating activities
269,939 
272,984 
Cash Flows From Investing Activities:
 
 
Capital expenditures
(122,809)
(125,852)
Change in restricted cash
(373)
49 
Acquisition of intangible assets
(1,900)
 
Net cash used in investing activities
(125,082)
(125,803)
Cash Flows From Financing Activities:
 
 
Repayment of long-term debt
(42,025)
(185,742)
Repayment of note payable
 
(3,000)
Proceeds from draw on revolving credit facility
40,000 
35,000 
Repayment of revolving credit facility
(40,000)
(35,000)
Purchase of treasury stock
(50,708)
 
Dividends paid to stockholders
(53,639)
(18,124)
Payment of tax withholdings on equity-based compensation through shares withheld
(134)
 
Redemption premium payment
 
(15,400)
Proceeds from the issuance of debt
 
1,455 
Proceeds from issuance of common stock, net of underwriter commissions
 
253,800 
Debt issuance costs
 
(10,635)
Offering costs
 
(4,694)
Net cash (used in) provided by financing activities
(146,506)
17,660 
Change in Cash and Cash Equivalents
(1,649)
164,841 
Cash and Cash Equivalents-Beginning of period
116,841 
45,675 
Cash and Cash Equivalents-End of period
115,192 
210,516 
Supplemental Disclosures of Noncash Investing and Financing Activities
 
 
Capital expenditures in accounts payable
13,616 
24,449 
Dividends declared, but unpaid
$ 18,647 
$ 18,223 
Description of the Business and Basis of Presentation
Description of the Business and Basis of Presentation

1. DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION

Description of the Business

SeaWorld Entertainment, Inc., through its wholly-owned subsidiary, SeaWorld Parks & Entertainment, Inc. (“SEA”) and its subsidiaries (collectively, the “Company”), owns and operates eleven theme parks within the United States. Prior to December 1, 2009, the Company did not have any operations. Prior to its initial public offering on April 24, 2013, the Company was owned by ten limited partnerships (the “Partnerships” or the “selling stockholders”), ultimately owned by affiliates of The Blackstone Group L.P. (“Blackstone”) and certain co-investors.

The Company operates SeaWorld theme parks in Orlando, Florida; San Antonio, Texas; and San Diego, California, and Busch Gardens theme parks in Tampa, Florida, and Williamsburg, Virginia. The Company operates water park attractions in Orlando, Florida (Aquatica); San Diego, California (Aquatica); Tampa, Florida (Adventure Island); and Williamsburg, Virginia (Water Country USA). The Company also operates a reservations-only attraction offering interaction with marine animals (Discovery Cove) and a seasonal park in Langhorne, Pennsylvania (Sesame Place).

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K filed with the SEC as well as the information contained under the heading “Revision of Previously Issued Financial Statements” which follows. The unaudited condensed consolidated balance sheet as of December 31, 2013 has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K except as discussed under the heading “Revision of Previously Issued Financial Statements” which follows.

In the opinion of management, such unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations for the year ending December 31, 2014 or any future period due to the seasonal nature of the Company’s operations. Based upon historical results, the Company typically generates its highest revenues in the second and third quarters of each year and incurs a net loss in the first and fourth quarters, in part because six of its theme parks are only open for a portion of the year.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including SEA. All intercompany accounts have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions include, but are not limited to, the accounting for self-insurance, deferred tax assets, deferred revenue, equity compensation and the valuation of goodwill and other indefinite-lived intangible assets. Actual results could differ from those estimates.

 

Segment Reporting

The Company maintains discrete financial information for each of its eleven theme parks, which is used by the Chief Operating Decision Maker (“CODM”), identified as the Chief Executive Officer, as a basis for allocating resources. Each theme park has been identified as an operating segment and meets the criteria for aggregation due to similar economic characteristics. In addition, all of the theme parks provide similar products and services and share similar processes for delivering services. The theme parks have a high degree of similarity in the workforces and target similar consumer groups. Accordingly, based on these economic and operational similarities and the way the CODM monitors the operations, the Company has concluded that its operating segments may be aggregated and that it has one reportable segment.

Revision of Previously Issued Financial Statements

In the third quarter of 2014, the Company conducted an internal review of its application of the guidance in Accounting Standards Codification (“ASC”) 470-50, Debt-Modifications and Extinguishments, to its accounting for certain debt transactions in 2013, 2012 and 2011. As a result of this review and analysis, the Company determined that it had incorrectly applied the accounting guidance in ASC 470-50 and inappropriately accounted for certain fees as a result of modifications and prepayments in certain years. In accordance with ASC 250 (SEC Staff Accounting Bulletin 99,Assessing Materiality), the Company concluded that the correction of the errors was not material to any of its previously issued annual or interim financial statements. The Company has revised its previously issued financial statements contained in this Quarterly Report on Form 10-Q to correct the effect of these immaterial errors for the corresponding periods.

The following table presents the impact of these corrections on affected unaudited condensed consolidated statements of comprehensive income line items for the three and nine months ended September 30, 2013:

 

     For the Three Months Ended
September 30, 2013
     For the Nine Months Ended
September 30, 2013
 
     As Previously
Reported
     Adjustments     As Revised      As Previously
Reported
     Adjustments     As Revised  

Selected Statements of Comprehensive Income Data:

          

Operating expenses

   $ 202,625       $ —        $ 202,625       $ 570,559       $ 3,333      $ 573,892   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Interest expense

   $ 21,018       $ (807   $ 20,211       $ 72,550       $ (2,111   $ 70,439   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Loss on early extinguishment of debt and write-off of discounts and deferred financing costs

   $ —         $ —        $ —         $ 32,429       $ (2,571   $ 29,858   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Income before income taxes

   $ 184,589       $ 807      $ 185,396       $ 95,915       $ 1,349      $ 97,264   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Provision for income taxes

   $ 64,390       $ 266      $ 64,656       $ 31,930       $ 445      $ 32,375   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net income

   $ 120,199       $ 541      $ 120,740       $ 63,985       $ 904      $ 64,889   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Earnings per share:

               

Net income per share, basic

   $ 1.34       $ 0.01      $ 1.35       $ 0.74       $ 0.01      $ 0.75   

Net income per share, diluted

   $ 1.33       $ 0.01      $ 1.34       $ 0.73       $ 0.01      $ 0.74   

 

The following table presents the impact of these corrections on affected unaudited condensed consolidated statement of cash flows line items for the nine months ended September 30, 2013:

 

     For the Nine Months Ended
September 30, 2013
 
     As
Previously
Reported
     Adjustments     As Revised  

Selected Statements of Cash Flows Data:

       

Net cash provided by operating activities

   $ 276,317       $ (3,333   $ 272,984   
  

 

 

    

 

 

   

 

 

 

Net cash provided by financing activities

   $ 14,327       $ 3,333      $ 17,660   
  

 

 

    

 

 

   

 

 

 

The following table presents the impact of these corrections on affected unaudited condensed consolidated balance sheet line items as of December 31, 2013:

 

     As of December 31, 2013  
     As
Previously
Reported
     Adjustments     As Revised  

Selected Balance Sheet Data:

  

Other assets

   $ 40,753       $ (4,863   $ 35,890   
  

 

 

    

 

 

   

 

 

 

Total assets

   $ 2,582,273       $ (4,863   $ 2,577,410   
  

 

 

    

 

 

   

 

 

 

Long-term debt

   $ 1,627,183       $ 5,348      $ 1,632,531   
  

 

 

    

 

 

   

 

 

 

Deferred tax liabilities, net

   $ 29,776       $ (4,106   $ 25,670   
  

 

 

    

 

 

   

 

 

 

Retained earnings

   $ 7,991       $ (6,105   $ 1,886   
  

 

 

    

 

 

   

 

 

 

Total stockholders’ equity

   $ 654,132       $ (6,105   $ 648,027   
  

 

 

    

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,582,273       $ (4,863   $ 2,577,410   
  

 

 

    

 

 

   

 

 

 

 

The following tables present the impact of these corrections for other previously issued periods as indicated:

 

    For the Year Ended December 31, 2013     For the Year Ended December 31, 2012     For the Year Ended December 31, 2011  
    As
Previously
Reported
    Adjustments     As
Revised
    As
Previously
Reported
    Adjustments     As
Revised
    As
Previously
Reported
    Adjustments     As
Revised
 

Selected Statements of Comprehensive Income Data:

  

Operating expenses

  $ 739,989      $ 3,333      $ 743,322      $ 726,509      $ 4,073      $ 730,582      $ 687,999      $ 4,326      $ 692,325   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense

  $ 93,536      $ (2,914   $ 90,622      $ 111,426      $ (861   $ 110,565      $ 110,097      $ (12,356   $ 97,741   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss on early extinguishment of debt and write-off of discounts and deferred financing costs

  $ 32,429      $ (2,571   $ 29,858      $ —        $ 2,053      $ 2,053      $ —        $ 15,129      $ 15,129   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

  $ 75,482      $ 2,152      $ 77,634      $ 116,926      $ (5,265   $ 111,661      $ 32,541      $ (7,099   $ 25,442   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Provision for income taxes

  $ 25,004      $ 710      $ 25,714      $ 39,482      $ (2,042   $ 37,440      $ 13,428      $ (2,775   $ 10,653   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 50,478      $ 1,442      $ 51,920      $ 77,444      $ (3,223   $ 74,221      $ 19,113      $ (4,324   $ 14,789   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

  

Net income per share, basic

  $ 0.58      $ 0.01      $ 0.59      $ 0.94      $ (0.04   $ 0.90      $ 0.23      $ (0.05   $ 0.18   

Net income per share, diluted

  $ 0.57      $ 0.02      $ 0.59      $ 0.93      $ (0.04   $ 0.89      $ 0.23      $ (0.05   $ 0.18   

Selected Statements of Cash Flows Data:

  

Net cash provided by operating activities

  $ 289,794      $ (3,333   $ 286,461      $ 303,513      $ (4,073   $ 299,440      $ 268,249      $ (4,326   $ 263,923   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

  $ (52,252   $ 3,333      $ (48,919   $ (120,183   $ 4,073      $ (116,110   $ (99,967   $ 4,326      $ (95,641
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    For the Three Months Ended
June 30, 2014
    For the Three Months Ended
June 30, 2013
 
    As Previously
Reported
    Adjustments     As Revised     As Previously
Reported
    Adjustments     As Revised  

Selected Statements of Comprehensive Income (Loss) Data:

 

Operating expenses

  $ 189,190      $ —        $ 189,190      $ 194,674      $ 3,333      $ 198,007   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense

  $ 20,638      $ (112   $ 20,526      $ 22,926      $ (694   $ 22,232   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss on early extinguishment of debt and write-off of discounts and deferred financing costs

  $ —        $ —        $ —        $ 32,429      $ (2,571   $ 29,858   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

  $ 59,994      $ 112      $ 60,106      $ (24,268   $ (68   $ (24,336
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Provision for (benefit from) income taxes

  $ 22,658      $ 42      $ 22,700      $ (8,414   $ (22   $ (8,436
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

  $ 37,336      $ 70      $ 37,406      $ (15,854   $ (46   $ (15,900
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) per share:

           

Net income (loss) per share, basic

  $ 0.43      $ —        $ 0.43      $ (0.18   $ —        $ (0.18

Net income (loss) per share, diluted

  $ 0.43      $ —        $ 0.43      $ (0.18   $ —        $ (0.18

 

     For the Three Months Ended
March 31, 2014
    For the Three Months Ended
March 31, 2013
 
     As Previously
Reported
    Adjustments     As Revised     As Previously
Reported
    Adjustments     As Revised  

Selected Statements of Comprehensive Loss Data:

            

Interest expense

   $ 20,046      $ (342   $ 19,704      $ 28,606      $ (610   $ 27,996   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

   $ (79,471   $ 342      $ (79,129   $ (64,406   $ 610      $ (63,796
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Benefit from income taxes

   $ (30,040   $ 128      $ (29,912   $ (24,046   $ 201      $ (23,845
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (49,431   $ 214      $ (49,217   $ (40,360   $ 409      $ (39,951
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss per share:

            

Net loss per share, basic

   $ (0.56   $ —        $ (0.56   $ (0.49   $ 0.01      $ (0.48

Net loss per share, diluted

   $ (0.56   $ —        $ (0.56   $ (0.49   $ 0.01      $ (0.48 )
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements

2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

The Company reviews new accounting pronouncements as they are issued or proposed by the Financial Accounting Standards Board (“FASB”). The Company is not aware of any new accounting pronouncements that will have a material impact on the Company’s financial position, results of operations or cash flows.

In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date will be annual reporting periods beginning after December 15, 2016 using one of two retrospective application methods. The Company is evaluating the accounting and disclosure requirements on its consolidated financial statements but does not currently anticipate a material impact to the consolidated financial statements upon adoption.

Earnings Per Share
Earnings Per Share

3. EARNINGS PER SHARE

Earnings per share is computed as follows:

 

     Three Months Ended September 30,      Nine Months Ended September 30,  
     2014      2013      2014      2013  
     Net
Income
     Shares      Per
Share
Amount
     Net
Income
     Shares      Per
Share
Amount
     Net
Income
     Shares      Per
Share
Amount
     Net
Income
     Shares      Per
Share
Amount
 

Basic earnings per share

   $ 87,176         86,715       $ 1.01       $ 120,740         89,610       $ 1.35       $ 75,365         87,329       $ 0.86       $ 64,889         86,867       $ 0.75   

Effect of dilutive incentive-based awards

        309               596               319               664      
     

 

 

          

 

 

          

 

 

          

 

 

    

Diluted earnings per share

   $ 87,176         87,024       $ 1.00       $ 120,740         90,206       $ 1.34       $ 75,365         87,648       $ 0.86       $ 64,889         87,531       $ 0.74   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

In accordance with the Earnings Per Share Topic of the ASC, basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period (excluding unvested restricted stock). The shares of unvested restricted stock are eligible to receive dividends; however, dividend rights will be forfeited if the award does not vest. Accordingly, only vested shares of outstanding restricted stock are included in the calculation of basic earnings per share. The weighted average number of repurchased shares during the period that are held as treasury stock are excluded from common stock outstanding.

 

Diluted earnings per share is determined based on the dilutive effect of unvested restricted stock probable of vesting using the treasury stock method. During the three and nine months ended September 30, 2014, there were approximately 27,000 and 21,000 antidilutive shares of common stock excluded from the computation of diluted earnings per share, respectively. During the three and nine months ended September 30, 2013, there were no antidilutive shares of common stock excluded from the computation of diluted earnings per share.

Income Taxes
Income Taxes

4. INCOME TAXES

Income tax expense is recognized based on the Company’s estimated annual effective tax rate which is based upon the tax rate expected for the full calendar year applied to the pre-tax income or loss of the interim period. The Company’s consolidated effective tax rate for both the three and nine months ended September 30, 2014 was 38.0%, and differs from the statutory federal income tax rate primarily due to state income taxes and other permanent items. The Company’s consolidated effective tax rate for the three and nine months ended September 30, 2013 was 34.9% and 33.3%, respectively, and differs from the statutory federal income tax rate primarily due to certain tax credits and state income taxes.

The Company has determined that there are no positions currently taken that would rise to a level requiring an amount to be recorded or disclosed as an uncertain tax position. If such positions do arise, it is the Company’s intent that any interest or penalty amount related to such positions will be recorded as a component of tax expense to the applicable period.

Other Accrued Expenses
Other Accrued Expenses

5. OTHER ACCRUED EXPENSES

Other accrued expenses at September 30, 2014 and December 31, 2013, consisted of the following:

 

     September 30,
2014
     December 31,
2013
 

Accrued property taxes

   $ 10,952       $ 2,113   

Accrued interest

     9,756         2,636   

Self-insurance reserve

     7,800         7,800   

Other

     2,177         2,715   
  

 

 

    

 

 

 

Total other accrued expenses

   $ 30,685       $ 15,264   
  

 

 

    

 

 

Long-Term Debt
Long-Term Debt

6. LONG-TERM DEBT

Long-term debt as of September 30, 2014 and December 31, 2013 consisted of the following:

 

     September 30,
2014
    December 31,
2013
 

Term B-2 Loans

   $ 1,355,950      $ 1,397,975   

Revolving credit agreement

     —          —     

Senior Notes

     260,000        260,000   
  

 

 

   

 

 

 

Total long-term debt

     1,615,950        1,657,975   

Less discounts

     (9,531     (11,394

Less current maturities

     (14,050     (14,050
  

 

 

   

 

 

 

Total long-term debt, net of current maturities

   $ 1,592,369      $ 1,632,531   
  

 

 

   

 

 

 

SEA is the borrower under the senior secured credit facilities, as amended pursuant to a credit agreement dated as of December 1, 2009 (“Senior Secured Credit Facilities”). Also on December 1, 2009, SEA issued $400,000 aggregate principal amount of unsecured senior notes due December 1, 2016 (the “Senior Notes”). In conjunction with the Company’s initial public offering completed on April 24, 2013, the Company used a portion of the net proceeds received from the offering to repay $37,000 of the outstanding indebtedness under the then existing Term B Loan and to redeem $140,000 aggregate principal amount of its Senior Notes at a redemption price of 111.0%, plus accrued and unpaid interest thereon. See further discussion in Note 12- Stockholders’ Equity.

 

Deferred financing costs, net of accumulated amortization and amounts written-off for early extinguishment of debt, were $21,788 and $27,453 as of September 30, 2014 and December 31, 2013, respectively. Deferred financing costs are being amortized to interest expense using the effective interest method over the term of the Senior Secured Credit Facilities or the Senior Notes and are included in other assets in the accompanying unaudited condensed consolidated balance sheets.

As of September 30, 2014, the Company was in compliance with all covenants in the provisions contained in the documents governing the Senior Secured Credit Facilities and in the indenture governing the Senior Notes.

Senior Secured Credit Facilities

As of September 30, 2014, the Senior Secured Credit Facilities consisted of a $1,355,950 senior secured term loan facility (the “Term B-2 Loans”), which will mature on May 14, 2020 and a $192,500 senior secured revolving credit facility (the “Revolving Credit Facility”), which was not drawn upon at September 30, 2014. The Revolving Credit Facility will mature on the earlier of (a) April 24, 2018 and (b) the 91st day prior to the earlier of (1) the maturity date of Senior Notes with an aggregate principal amount greater than $50,000 outstanding and (2) the maturity date of any indebtedness incurred to refinance any of the term loans or the Senior Notes.

The Term B-2 Loans were borrowed in an aggregate principal amount of $1,405,000. Borrowings under the Secured Credit Facilities bear interest, at SEA’s option, at a rate equal to a margin over either (a) a base rate determined by reference to the higher of (1) the Bank of America’s prime lending rate and (2) the federal funds effective rate plus 1/2 of 1% or (b) a LIBOR rate determined by reference to the British Bankers Association (“BBA”) LIBOR rate, or the successor thereto if the BBA is no longer making a LIBOR rate available, for the interest period relevant to such borrowing. The applicable margin for the Term B-2 Loans is 1.25%, in the case of base rate loans, and 2.25%, in the case of LIBOR rate loans, subject to a base rate floor of 1.75% and a LIBOR floor of 0.75%. The applicable margin for the Term B-2 Loans (under either a base rate or LIBOR rate) is subject to one 25 basis point step-down upon achievement by SEA of a certain total leverage ratio. At September 30, 2014, the Company selected the LIBOR rate (interest rate of 3.00% at September 30, 2014).

The applicable margin for borrowings under the Revolving Credit Facility is 1.75%, in the case of base rate loans, and 2.75%, in the case of LIBOR rate loans. The applicable margin (under either a base rate or LIBOR rate) is subject to one 25 basis point step-down upon achievement by SEA of certain corporate credit ratings. At September 30, 2014, SEA selected the LIBOR rate and achieved the corporate credit ratings for an applicable margin of 2.50%.

In addition to paying interest on outstanding principal under the Senior Secured Credit Facilities, SEA is required to pay a commitment fee to the lenders under the Revolving Credit Facility in respect of the unutilized commitments thereunder. SEA is also required to pay customary letter of credit fees.

The Term B-2 Loans amortize in equal quarterly installments in an aggregate annual amount equal to 1.0% of the original principal amount of the Term B-2 Loans on May 14, 2013, with the first payment due and paid on September 30, 2013 and the balance due on the final maturity date, of May 14, 2020. SEA may voluntarily repay amounts outstanding under the Senior Secured Credit Facilities at any time without premium or penalty, other than customary “breakage” costs with respect to LIBOR loans. On September 30, 2014, the Company made a voluntary principal repayment of approximately $31,500 on the Term B-2 Loans with available cash on hand.

SEA may also increase and/or add one or more incremental term loan facilities to the Senior Secured Credit Facilities and/or increase commitments under the Revolving Credit Facility in an aggregate principal amount of up to $350,000. SEA may also incur additional incremental term loans provided that, among other things, on a pro forma basis after giving effect to the incurrence of such incremental term loans, the first lien secured leverage ratio, as defined in the Senior Secured Credit Facility, is no greater than 3.50 to 1.00.

As of September 30, 2014, the Company had approximately $16,100 of outstanding letters of credit, leaving approximately $176,400 available for borrowing.

On April 5 and May 14, 2013, the Company entered into Amendments No. 4 and 5 to its Senior Secured Credit Facilities. As a result of Amendment No. 5 and certain syndicate members ceasing their participation in the syndicate or having a substantial modification of their debt, approximately $8,100 of debt issuance costs were written off and included as loss on early extinguishment of debt and write-off of discounts and deferred financing costs on the Company’s unaudited condensed consolidated statement of comprehensive income for the nine months ended September 30, 2013, pursuant to the guidance outlined in ASC 470-50. In addition, approximately $3,900 of third party debt issuance costs were expensed on the Company’s unaudited condensed consolidated statement of comprehensive income for the nine months ended September 30, 2013, pursuant to the guidance outlined in ASC 470-50 as certain syndicate members had modifications that resulted in debt instruments that were not substantially different. As a result of Amendments No. 4 and 5, the Company capitalized fees totaling approximately $9,400 for the nine months ended September 30, 2013.

 

Senior Notes

The Senior Notes interest rate is 11.0% per annum. Interest is paid semi-annually in arrears. The obligations under the Senior Notes are guaranteed by the same entities as those that guarantee the Senior Secured Credit Facilities. Prior to December 1, 2014, SEA may redeem some or all of the Senior Notes at a price equal to 100% of the principal amount of the Senior Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest to the redemption date, subject to the right of the holders of record on the relevant record date to receive interest due on the relevant interest payment date. The “Applicable Premium” is defined as the greater of (1) 1.0% of the principal amount of the Senior Notes and (2) the excess, if any, of (a) the present value at such redemption date of (i) the redemption price of the Senior Notes at December 1, 2014 plus (ii) all required interest payments due on the Senior Notes through December 1, 2014 (excluding accrued but unpaid interest to the redemption date), computed using a discount rate equal to the Treasury Rate plus 50 basis points over (b) the principal amount of the Senior Notes. On or after December 1, 2014, the Senior Notes may be redeemed at 105.5% and 102.75% of the principal balance beginning on December 1, 2014 and 2015, respectively.

Restricted Covenants

The Senior Secured Credit Facilities and the indenture governing the Senior Notes contain a number of covenants that, among other things, restrict SEA’s ability and the ability of its restricted subsidiaries to, among other things, make certain restricted payments (as defined in the applicable agreement), including dividend payments and share repurchases. In particular, the Senior Secured Credit Facilities and the indenture permit restricted payments in an aggregate amount per annum not to exceed the greater of (1) 6% of initial public offering net proceeds received by SEA or (2) (a) $90,000, so long as, on a pro forma basis (as defined in the applicable agreement) after giving effect to the payment of any such restricted payment, the Total Leverage Ratio, (as defined in the applicable agreement), is no greater than 5.00 to 1.00 and greater than 4.50 to 1.00, (b) $120,000, so long as, on a pro forma basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 4.50 to 1.00 and greater than 4.00 to 1.00, (c) the greater of (A) $120,000 and (B) 7.5% of market capitalization, so long as, on a pro forma basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 4.00 to 1.00 and greater than 3.50 to 1.00 and (d) an unlimited amount, so long as, on a pro forma basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 3.50 to 1.00. As of September 30, 2014, the Total Leverage Ratio as calculated under the Senior Notes was 4.41 to 1.00 and as calculated under the Senior Secured Credit Facilities was 4.09 to 1.00, which results in the Company having a $120,000 capacity for restricted payments in fiscal 2014. During the nine months ended September 30, 2014, the Company has used approximately $104,900 of its available restricted payments capacity. As a result, the Company currently has the ability to declare dividends or make certain other restricted payments in an aggregate amount of up to approximately $15,100 for the remainder of calendar year 2014. The amount available for dividend declarations, share repurchases and certain other restricted payments under the covenant restrictions in the debt agreements will be reset on January 1, 2015 as set forth above.

Long-term debt at September 30, 2014, is repayable as follows:

 

Years Ending December 31,

 

2014

   $ 3,513   

2015

     14,050   

2016

     274,050   

2017

     14,050   

2018

     14,050   

Thereafter

     1,296,237   
  

 

 

 

Total

   $  1,615,950   
  

 

 

 

 

Interest Rate Swap Agreements

On August 23, 2012, SEA executed two interest rate swap agreements (the “Interest Rate Swap Agreements”) to effectively fix the interest rate on $550,000 of the then existing Term B Loans. Each interest rate swap had a notional amount of $275,000; was scheduled to mature on September 30, 2016; required the Company to pay a fixed rate of interest of 1.247% per annum; paid swap counterparties a variable rate of interest based upon three month BBA LIBOR; and had interest settlement dates occurring on the last day of December, March, June and September through maturity. SEA had designated such interest rate swap agreements as qualifying cash flow hedge accounting relationships.

As a result of an amendment to the Senior Secured Credit Facilities in May 2013, the Interest Rate Swap Agreements were restructured into two interest rate swaps totaling $550,000 to match the refinanced debt. Each restructured interest rate swap has a notional amount of $275,000; matures on September 30, 2016; requires the Company to pay a fixed rate of interest between 1.049% and 1.051% per annum; pays swap counterparties a variable rate of interest based upon the greater of 0.75% or three month BBA LIBOR; and has interest settlement dates occurring on the last day of December, March, June and September through maturity.

In March 2014, the Company executed a new interest rate swap agreement to effectively fix the interest rate on $450,000 of the Term B-2 Loans. The new interest rate swap has an effective date of March 31, 2014; has a notional amount of $450,000; matures on September 30, 2016; requires the Company to pay a fixed rate of interest of 1.051% per annum; pays swap counterparties a variable rate of interest based upon the greater of 0.75% or three month BBA LIBOR; and has interest settlement dates occurring on the last day of December, March, June and September through maturity.

SEA designated the interest rate swap agreements above as qualifying cash flow hedge accounting relationships as further discussed in Note 7- Derivative Instruments and Hedging Activities which follows.

Cash paid for interest relating to the Senior Secured Credit Facilities, the Senior Notes and the interest rate swap agreements was $49,133 and $59,685 for the nine month periods ended September 30, 2014 and 2013, respectively.

Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities

7. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings.

As of September 30, 2014 and December 31, 2013, the Company did not have any derivatives outstanding that were not designated in hedge accounting relationships.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. During the three and nine months ended September 30, 2014, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. As of September 30, 2014, the Company had three outstanding interest rate swaps with a combined notional value of $1,000,000 that were designated as cash flow hedges of interest rate risk. In connection with Amendment No. 5 to the Senior Secured Credit Facility on May 14, 2013, the Company restructured two of its then existing interest rate swaps to match the refinanced debt. The restructuring of the interest rate swaps required a re-designation of the hedge accounting relationship. The re-designation is expected to result in the recognition of a minimal amount of ineffectiveness throughout the remaining term of the interest rate swaps.

 

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and nine months ended September 30, 2014 and 2013, there was no ineffective portion recognized in earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next 12 months, the Company estimates that an additional $2,901 will be reclassified as an increase to interest expense.

Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheet as of September 30, 2014:

 

     As of September 30, 2014  
     Asset Derivatives      Liabilities Derivatives  
   Balance Sheet
Location
   Fair Value      Balance Sheet
Location
   Fair Value  

Derivatives designated as hedging instruments:

           

Interest rate swaps

   Other assets    $ —         Other liabilities    $ 148   
     

 

 

       

 

 

 

Total derivatives designated as hedging instruments

      $ —            $ 148   
     

 

 

       

 

 

 

The unrealized gain on derivatives is recorded net of a tax expense of $664 and $4 for the three and nine months ended September 30, 2014, respectively, and is included within the unaudited condensed consolidated statements of comprehensive income.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheet as of December 31, 2013:

 

     As of December 31, 2013  
     Asset Derivatives      Liabilities Derivatives  
     Balance Sheet
Location
     Fair Value      Balance Sheet
Location
     Fair Value  

Derivatives designated as hedging instruments:

           

Interest rate swaps

     Other assets       $ 71         Other liabilities       $ —     
     

 

 

       

 

 

 

Total derivatives designated as hedging instruments

      $ 71          $ —     
     

 

 

       

 

 

 

Tabular Disclosure of the Effect of Derivative Instruments on the Statements of Comprehensive Income

The table below presents the pre-tax effect of the Company’s derivative financial instruments on the unaudited condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2014 and 2013:

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2014      2013     2014     2013  

Derivatives in Cash Flow Hedging Relationships:

         

Gain (loss) related to effective portion of derivatives recognized in accumulated other comprehensive income

   $ 1,005       $ (1,380   $ (1,868   $ 3,338   

Gain (loss) related to effective portion of derivatives reclassified from accumulated other comprehensive income to interest expense

   $ 746       $ (422   $ 1,879      $ (1,144

Gain (loss) related to ineffective portion of derivatives recognized in other income (expense)

   $ —         $ —        $ —        $ —     

Credit Risk-Related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations.

 

As of September 30, 2014, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $121. As of September 30, 2014, the Company has posted no collateral related to these agreements. If the Company had breached any of these provisions at September 30, 2014, it could have been required to settle its obligations under the agreements at their termination value of $121.

Changes in Accumulated Other Comprehensive Income

The following table reflects the changes in accumulated other comprehensive income for the nine months ended September 30, 2014, net of tax:

 

     Gains
(Losses) on
Cash Flow
Hedges
 
Accumulated other comprehensive income:   

Balance at December 31, 2013

   $ 11   

Other comprehensive loss before reclassifications

     (1,189

Amounts reclassified from accumulated other comprehensive income to interest expense

     1,196   
  

 

 

 

Unrealized gain on derivatives, net of tax

     7   
  

 

 

 

Balance at September 30, 2014

   $ 18   
  

 

 

 
Fair Value Measurements
Fair Value Measurements

8. FAIR VALUE MEASUREMENTS

Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement is required to be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

The Company has determined that the majority of the inputs used to value its derivative financial instruments using the income approach fall within Level 2 of the fair value hierarchy. The Company uses readily available market data to value its derivatives, such as interest rate curves and discount factors. ASC 820, Fair Value Measurement, also requires consideration of credit risk in the valuation. The Company uses a potential future exposure model to estimate this credit valuation adjustment (“CVA”). The inputs to the CVA are largely based on observable market data, with the exception of certain assumptions regarding credit worthiness which make the CVA a Level 3 input. Based on the magnitude of the CVA, it is not considered a significant input and the derivatives are classified as Level 2. Of the Company’s long-term obligations, the Term B-2 Loans are classified in Level 2 of the fair value hierarchy. The fair value of the term loans as of September 30, 2014 approximates their carrying value due to the variable nature of the underlying interest rates and the frequent intervals at which such interest rates are reset. The Senior Notes are classified in Level 3 of the fair value hierarchy and have been valued using significant inputs that are not observable in the market including a discount rate of 10.48% and projected cash flows of the underlying Senior Notes.

 

There were no transfers between Levels 1, 2 or 3 during the three or nine months ended September 30, 2014 and 2013. The Company did not have any assets measured at fair value as of September 30, 2014. The following table presents the Company’s estimated fair value measurements and related classifications as of September 30, 2014:

 

     Quoted Prices in
Active Markets
for Identical
Assets and
Liabilities
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
     Significant
Unobservable
Inputs
(Level 3)
     Balance at
September 30,
2014
 

Liabilities:

           

Derivative financial instruments (a)

   $ —         $ 148       $ —         $ 148   

Long-term obligations (b)

   $ —         $ 1,355,950       $ 267,187       $ 1,623,137   

 

(a) Reflected at fair value in the unaudited condensed consolidated balance sheet as other liabilities of $148.
(b) Reflected at carrying value in the unaudited condensed consolidated balance sheet as current maturities on long-term debt of $14,050 and long-term debt of $1,592,369 as of September 30, 2014.

There were no transfers between Levels 1, 2 or 3 during the year ended December 31, 2013. The following table presents the Company’s estimated fair value measurements and related classifications as of December 31, 2013:

 

     Quoted Prices in
Active Markets
for Identical
Assets and
Liabilities
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
     Significant
Unobservable
Inputs
(Level 3)
     Balance at
December 31,
2013
 

Assets:

           

Derivative financial instruments (a)

   $ —         $ 71       $ —         $ 71   

Liabilities:

           

Long-term obligations (b)

   $ —         $ 1,397,975       $ 264,781       $ 1,662,756   

 

(a) Reflected at fair value in the unaudited condensed consolidated balance sheet as other assets of $71.
(b) Reflected at carrying value in the unaudited condensed consolidated balance sheet as current maturities on long-term debt of $14,050 and long-term debt of $1,632,531 as of December 31, 2013.
Related-Party Transactions
Related-Party Transactions

9. RELATED-PARTY TRANSACTIONS

Prior to April 2013, certain affiliates of Blackstone provided monitoring, advisory, and consulting services to the Company under an advisory fee agreement (the “2009 Advisory Agreement”), which was terminated on April 24, 2013, in connection with the completion of the initial public offering (see Note 12 – Stockholders’ Equity). Fees related to these services, which were based upon a multiple of Adjusted EBITDA as defined in the 2009 Advisory Agreement, amounted to $2,799 for the nine months ended September 30, 2013. These amounts are included in selling, general and administrative expenses in the accompanying unaudited condensed consolidated statements of comprehensive income. There were no fees related to these services in the three or nine months ended September 30, 2014 due to the termination of the 2009 Advisory Agreement in April 2013.

In connection with the completion of the initial public offering in April 2013 (see Note 12 – Stockholders’ Equity), the 2009 Advisory Agreement between the Company and affiliates of Blackstone was terminated (except for certain provisions relating to indemnification and certain other provisions, which survived termination). In connection with such termination, in April 2013, the Company paid a termination fee of $46,300 to Blackstone using a portion of the net proceeds from the offering and wrote off $3,772 of the 2013 prepaid advisory fee. The combined expense of $50,072 was recorded as termination of advisory agreement during the nine months ended September 30, 2013 in the accompanying unaudited condensed consolidated statements of comprehensive income.

In March 2014, the Board declared a cash dividend of $0.20 per share to all common stockholders of record at the close of business on March 20, 2014. In May and September 2014, the Board declared a cash dividend of $0.21 per share to all common stockholders of record at the close of business on June 20 and September 29, 2014, respectively (see Note 12 - Stockholders’ Equity). In connection with these dividend declarations, certain affiliates of Blackstone were paid dividends in the amount of $7,849, $4,252 and $4,095 on April 1, July 1, and October 6, 2014, respectively.

The Company repurchased shares of its common stock from the selling stockholders concurrently with the closing of the respective secondary offerings in December 2013 and April 2014. See further discussion in Note 12 - Stockholders’ Equity.

Commitments and Contingencies
Commitments and Contingencies

10. COMMITMENTS AND CONTINGENCIES

Securities Class Action Lawsuit

On September 9, 2014, a purported stockholder class action lawsuit consisting of purchasers of the Company’s common stock during the periods between April 18, 2013 to August 13, 2014, captioned Baker v. SeaWorld Entertainment, Inc., et al., Case No. 14-CV-02129-MMA (KSC), was filed in the U.S. District Court for the Southern District of California (the “Court”) against the Company, the Chairman of our Board of Directors, certain of our executive officers and Blackstone (the “Defendants”). The complaint alleges that the prospectus and registration statements filed contained materially false and misleading information in violation of the federal securities laws and seeks unspecified compensatory damages and other relief. On October 10, 2014, the Court entered an Order Granting Joint Motion for Extension of Time to Respond to Complaint (the “Order”). The Order provides that (i) the Defendants need not respond to the complaint until a lead plaintiff is appointed, lead plaintiff’s counsel is approved, and the lead plaintiff files an amended complaint; (ii) within fifteen (15) days of the Court’s appointment of lead plaintiff and lead counsel, counsel for the Defendants and counsel for the lead plaintiff shall meet and confer regarding scheduling; and (iii) within five (5) days of the meet and confer, the parties shall submit a joint motion for the Court’s approval with the parties’ proposed schedule for the filing of an amended complaint, and the filing of a motion to dismiss or other response to the amended complaint. The Company believes that the class action lawsuit is without merit and intends to defend the lawsuit vigorously; however, there can be no assurance regarding the ultimate outcome of this lawsuit.

Other Matters

The Company is a party to other various claims and legal proceedings arising in the normal course of business. Matters where an unfavorable outcome to the Company is probable and which can be reasonably estimated are accrued. Such accruals, which are not material for any period presented, are based on information known about the matters, the Company’s estimate of the outcomes of such matters, and the Company’s experience in contesting, litigating, and settling similar matters. Matters that are considered reasonably possible to result in a material loss are not accrued for, but an estimate of the possible loss or range of loss is disclosed, if such amount or range can be determined. Management does not expect any known claims or legal proceedings to have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows.

Equity-Based Compensation
Equity-Based Compensation

11. EQUITY-BASED COMPENSATION

In accordance with ASC 718, Compensation-Stock Compensation, the Company measures the cost of employee services rendered in exchange for share-based compensation based upon the grant date fair market value. The cost is recognized over the requisite service period, which is generally the vesting period.

Employee Units Surrendered for Common Stock

Prior to April 18, 2013, the Company had an Employee Unit Incentive Plan (“Employee Unit Plan”). Under the Employee Unit Plan, the Partnerships granted employee units to certain key employees of SEA (“Employee Units”). The Employee Units that were granted were accounted for as equity awards and were divided into three tranches, Time Vesting Units (“TVUs”), 2.25x Performance Vesting Units (“PVUs”) and 2.75x PVUs. Separately, certain members of management in 2011 also purchased Class D Units of the Partnerships (“Class D Units”).

 

Prior to the consummation of the Company’s initial public offering, on April 18, 2013, the Employee Units and Class D Units held by certain of the Company’s directors, officers, employees, and consultants were surrendered to the Partnerships and such individuals received an aggregate of 4,165,861 shares of the Company’s issued and outstanding common stock from the Partnerships. The number of shares of the Company’s common stock received by such individuals from the Partnerships was determined in a manner intended to replicate the economic value to each equity holder immediately prior to the transaction. The Class D Units and vested Employee Units were surrendered for an aggregate of 949,142 shares of common stock. The unvested Employee Units were surrendered for an aggregate of 3,216,719 unvested restricted shares of the Company’s common stock, which are subject to vesting terms substantially similar to those applicable to the unvested Employee Units immediately prior to the transaction. These unvested restricted shares consisted of Time Restricted shares (the “Time Restricted shares”), and 2.25x and 2.75x Performance Restricted shares, (collectively, the “Performance Restricted shares”), which, for accounting purposes, were removed from the Company’s issued and outstanding shares until their restrictions are met.

TVUs and Time Restricted Shares

The shares of stock received upon surrender of the Employee Units contain substantially identical terms, conditions and vesting schedules as the previously outstanding Employee Units. Compensation expense related to the Time Restricted share awards was $248 and $774 for the three and nine months ended September 30, 2014, respectively. Total combined compensation expense relating to the TVU and Time Restricted share awards was $606 and $1,537 for the three and nine months ended September 30, 2013, respectively. Equity compensation expense is included in selling, general, and administrative expenses in the accompanying unaudited condensed consolidated statement of comprehensive income. Total unrecognized compensation expense related to the unvested Time Restricted shares, expected to be recognized over the remaining vesting term was $539 as of September 30, 2014.

2.25x and 2.75x PVUs and Performance Restricted Shares

The Performance Restricted shares received upon surrender of the Employee Unit PVUs contain substantially the same terms and conditions as the previously outstanding Employee Unit PVUs. The 2.25x Performance Restricted shares vest if the employee is employed by the Company when and if certain investment funds affiliated with Blackstone receive cash proceeds (not subject to any clawback, indemnity or similar contractual obligation) in respect of their Partnerships units equal to (x) a 20% annualized effective compounded return rate on such funds’ investment and (y) a 2.25x multiple on such funds’ investment. The 2.75x Performance Restricted shares vest if the employee is employed by the Company when and if such funds receive cash proceeds (not subject to any clawback, indemnity or similar contractual obligation) in respect of their Partnerships units equal to (x) a 15% annualized effective compounded return rate on such funds’ investment and (y) a 2.75x multiple on such funds’ investment. The Performance Restricted shares have no termination date other than termination of employment from the Company and there are no service or period vesting conditions associated with the Performance Restricted shares other than employment at the time the benchmark was reached. No compensation expense will be recorded related to the Performance Restricted shares until their vesting is probable, accordingly, no compensation expense has been recorded during the three or nine months ended September 30, 2014 or 2013 related to these PVUs or Performance Restricted share awards. Total unrecognized compensation expense as of September 30, 2014, was approximately $27,734 and $18,584 for these 2.25x and 2.75x Performance Restricted shares, respectively.

2013 Omnibus Incentive Plan

In 2013, the Company reserved 15,000,000 shares of common stock for future issuance under the Company’s new 2013 Omnibus Incentive Plan (“2013 Omnibus Incentive Plan”). The 2013 Omnibus Incentive Plan is administered by the compensation committee of the Board, and provides that the Company may grant equity incentive awards to eligible employees, directors, consultants or advisors in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based and performance compensation awards. If an award under the 2013 Omnibus Incentive Plan terminates, lapses, or is settled without the payment of the full number of shares subject to the award, the undelivered shares may be granted again under the 2013 Omnibus Incentive Plan.

On April 19, 2013, 494,557 shares of restricted stock were granted to the Company’s directors, officers and employees under the 2013 Omnibus Incentive Plan. The shares granted were in the form of time vesting restricted shares (“Time Restricted Omnibus shares”), 2.25x performance restricted shares (“2.25x Performance Restricted Omnibus shares”) and 2.75x performance restricted shares (“2.75x Performance Restricted Omnibus shares”).

 

Equity compensation expense related to time restricted shares awarded under the 2013 Omnibus Incentive Plan was $321 and $1,131 for the three and nine months ended September 30, 2014, respectively, and $1,876 and $3,167 for the three and nine months ended September 30, 2013. As of September 30, 2014, unrecognized compensation expense related to the time restricted shares awarded under the 2013 Omnibus Incentive Plan was $1,083 to be recognized over the remaining requisite service period. There is no compensation expense recorded related to the Performance Restricted Omnibus shares until their issuance is probable. Total unrecognized compensation expense as of September 30, 2014 was approximately $4,902 and $3,709 for the 2.25x Performance Restricted Omnibus shares and 2.75x Performance Restricted Omnibus shares, respectively.

Based on cash proceeds previously received by certain investment funds affiliated with Blackstone from the Company’s initial public offering and subsequent secondary offerings of stock, the Company’s repurchase of shares and the cumulative dividends paid by the Company through November 1, 2014, if such funds receive additional future cash proceeds of approximately $17,000, and other vesting conditions are satisfied, the 2.25x Performance Restricted shares and 2.25x Performance Restricted Omnibus shares will vest. Similarly, if such funds receive additional future cash proceeds of approximately $444,000, and other vesting conditions are satisfied, the 2.75x Performance Restricted shares and the 2.75x Performance Restricted Omnibus shares will vest. As receipt of these future cash proceeds will be primarily related to liquidity events, such as secondary offerings of stock, the shares are not considered probable of vesting until such events are consummated.

As of September 30, 2014, there were 14,521,774 shares of common stock available for future issuance under the Company’s 2013 Omnibus Incentive Plan.

Stockholders' Equity
Stockholders' Equity

12. STOCKHOLDERS’ EQUITY

As of September 30, 2014, 89,981,272 shares of common stock were issued on the accompanying unaudited condensed consolidated balance sheet, which excludes 3,266,721 unvested shares of common stock held by certain participants in the Company’s equity compensation plans (see Note 11 – Equity-Based Compensation).

Stock Split

On April 7, 2013, the Board authorized an eight-for-one split of the Company’s common stock which was effective on April 8, 2013. The Company retained the current par value of $0.01 per share for all shares of common stock after the stock split, and accordingly, stockholders’ equity on the accompanying unaudited condensed consolidated balance sheets and the unaudited condensed consolidated statements of changes in stockholders’ equity reflects the stock split. The Company’s historical share and per share information has been retroactively adjusted to give effect to this stock split.

Contemporaneously with the stock split, the Board approved an increase in the number of authorized shares of common stock to 1 billion shares. Additionally, upon the consummation of the initial public offering, the Board authorized 100,000,000 shares of preferred stock at a par value of $0.01 per share.

Initial Public Offering and Use of Proceeds

On April 24, 2013, the Company completed its initial public offering of its common stock in which it offered and sold 10,000,000 shares of common stock and the selling stockholders of the Company offered and sold 19,900,000 shares of common stock including, 3,900,000 shares of common stock pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The common stock is listed on the New York Stock Exchange under the symbol “SEAS”.

The Company’s initial public offering generated net proceeds of approximately $245,400 to the Company after deducting underwriting discounts and commissions, expenses and transaction costs. The Company did not receive any proceeds from shares sold by the selling stockholders. The Company used a portion of the net proceeds received in the offering to redeem (1) $140,000 in aggregate principal amount of its Senior Notes at a redemption price of 111.0% plus accrued and unpaid interest thereon and (2) to repay $37,000 of the outstanding indebtedness under the then existing Term B Loan. In addition, the Company used approximately $46,300 of the net proceeds received from the offering to make a one-time payment to an affiliate of Blackstone in connection with the termination of the 2009 Advisory Agreement (see Note 9 – Related-Party Transactions).

 

Secondary Offerings and Concurrent Share Repurchases

On December 17, 2013, the selling stockholders completed an underwritten secondary offering of 18,000,000 shares of common stock. The selling stockholders received all of the net proceeds from the offering and no shares were sold by the Company. The Company incurred fees and expenses of $1,407 in connection with this secondary offering which was shown as secondary offering expenses on the consolidated statement of comprehensive income for the year ended December 31, 2013.

On April 9, 2014, the selling stockholders completed an underwritten secondary offering of 17,250,000 shares of common stock, including 2,250,000 shares pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The selling stockholders received all of the net proceeds from the offering and no shares were sold by the Company. In the nine months ended September 30, 2014, the Company incurred fees and expenses of $747 in connection with this secondary offering which is shown as secondary offering expenses on the accompanying unaudited condensed consolidated statement of comprehensive income.

Concurrently with the closing of the secondary offering in December 2013 and April 2014, the Company repurchased 1,500,000 and 1,750,000 shares, respectively, of its common stock directly from the selling stockholders in private, non-underwritten transactions at a price per share equal to the price per share paid to the selling stockholders by the underwriters in the respective secondary offerings. All of the repurchased shares are recorded as treasury stock at a total cost of $44,163 and $94,871 as of December 31, 2013 and September 30, 2014, respectively, and are reflected as a reduction to stockholders’ equity on the accompanying unaudited condensed consolidated balance sheets and unaudited condensed consolidated statement of changes in stockholders’ equity.

Dividends

The Board has adopted a policy to pay, subject to legally available funds, a regular quarterly dividend. The payment of cash dividends is within the discretion of the Board and depends on many factors, including, but not limited to, the Company’s results of operations, financial condition, level of indebtedness, capital requirements, contractual restrictions, restrictions in its debt agreements and in any preferred stock, business prospects and other factors that the Board may deem relevant. In the nine months ended September 30, 2014, the Board declared or paid quarterly cash dividends to all common stockholders of record as follows:

 

Record Date

   Payment Date    Cash Dividend
per Common
Share
 

December 20, 2013

   January 3, 2014    $ 0.20   

March 20, 2014

   April 1, 2014    $ 0.20   

June 20, 2014

   July 1, 2014    $ 0.21   

September 29, 2014

   October 6, 2014    $ 0.21   

As the Company had an accumulated deficit at the time the June 20 and March 20, 2014 dividends were declared, these dividends were accounted for as a return of capital and recorded as a reduction to additional paid-in capital on the accompanying unaudited condensed consolidated statement of changes in stockholders’ equity. Dividends paid to common stockholders were $53,639 in the nine months ended September 30, 2014. The Company expects that for tax purposes, a portion of these dividends will be treated as a return of capital to stockholders. Distributions that qualify as a return of capital are not considered “dividends” for tax purposes only.

As of September 30, 2014, the Company had $18,647 of cash dividends recorded as dividends payable in the accompanying unaudited condensed consolidated balance sheet. Approximately $18,200 was paid on October 6, 2014. The remainder of the dividends payable relates to unvested restricted shares which carry dividend rights and therefore the dividends are paid as the shares vest in accordance with the underlying stock compensation grants. These dividend rights will be forfeited if the shares do not vest.

Dividends on the 2.25x and 2.75x Performance Restricted shares, including the 2.25x and 2.75x Performance Restricted Omnibus shares (collectively the “Performance Restricted shares”), were approximately $1,770 for each tranche and will accumulate and be paid only if and to the extent the Performance Restricted shares vest in accordance with their terms. The Company has not recorded a payable related to these dividends as the vesting of the Performance Restricted shares is not probable.

 

Share Repurchase Program

On August 12, 2014, the Board authorized a share repurchase program of up to $250.0 million of the Company’s common stock beginning on January 1, 2015. Under the repurchase program, the Company is authorized to repurchase shares through open market purchases, privately-negotiated transactions or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Securities Exchange Act of 1934. The repurchase program has no time limit and may be suspended for periods or discontinued at any time. The number of shares to be purchased and the timing of purchases will be based on the level of the Company’s cash balances, general business and market conditions, and other factors, including legal requirements, debt covenant restrictions and alternative investment opportunities.

Description of the Business and Basis of Presentation (Policies)

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K filed with the SEC as well as the information contained under the heading “Revision of Previously Issued Financial Statements” which follows. The unaudited condensed consolidated balance sheet as of December 31, 2013 has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K except as discussed under the heading “Revision of Previously Issued Financial Statements” which follows.

In the opinion of management, such unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations for the year ending December 31, 2014 or any future period due to the seasonal nature of the Company’s operations. Based upon historical results, the Company typically generates its highest revenues in the second and third quarters of each year and incurs a net loss in the first and fourth quarters, in part because six of its theme parks are only open for a portion of the year.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including SEA. All intercompany accounts have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions include, but are not limited to, the accounting for self-insurance, deferred tax assets, deferred revenue, equity compensation and the valuation of goodwill and other indefinite-lived intangible assets. Actual results could differ from those estimates.

Segment Reporting

The Company maintains discrete financial information for each of its eleven theme parks, which is used by the Chief Operating Decision Maker (“CODM”), identified as the Chief Executive Officer, as a basis for allocating resources. Each theme park has been identified as an operating segment and meets the criteria for aggregation due to similar economic characteristics. In addition, all of the theme parks provide similar products and services and share similar processes for delivering services. The theme parks have a high degree of similarity in the workforces and target similar consumer groups. Accordingly, based on these economic and operational similarities and the way the CODM monitors the operations, the Company has concluded that its operating segments may be aggregated and that it has one reportable segment.

Revision of Previously Issued Financial Statements

In the third quarter of 2014, the Company conducted an internal review of its application of the guidance in Accounting Standards Codification (“ASC”) 470-50, Debt-Modifications and Extinguishments, to its accounting for certain debt transactions in 2013, 2012 and 2011. As a result of this review and analysis, the Company determined that it had incorrectly applied the accounting guidance in ASC 470-50 and inappropriately accounted for certain fees as a result of modifications and prepayments in certain years. In accordance with ASC 250 (SEC Staff Accounting Bulletin 99,Assessing Materiality), the Company concluded that the correction of the errors was not material to any of its previously issued annual or interim financial statements. The Company has revised its previously issued financial statements contained in this Quarterly Report on Form 10-Q to correct the effect of these immaterial errors for the corresponding periods.

The following table presents the impact of these corrections on affected unaudited condensed consolidated statements of comprehensive income line items for the three and nine months ended September 30, 2013:

 

     For the Three Months Ended
September 30, 2013
     For the Nine Months Ended
September 30, 2013
 
     As Previously
Reported
     Adjustments     As Revised      As Previously
Reported
     Adjustments     As Revised  

Selected Statements of Comprehensive Income Data:

          

Operating expenses

   $ 202,625       $ —        $ 202,625       $ 570,559       $ 3,333      $ 573,892   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Interest expense

   $ 21,018       $ (807   $ 20,211       $ 72,550       $ (2,111   $ 70,439   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Loss on early extinguishment of debt and write-off of discounts and deferred financing costs

   $ —         $ —        $ —         $ 32,429       $ (2,571   $ 29,858   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Income before income taxes

   $ 184,589       $ 807      $ 185,396       $ 95,915       $ 1,349      $ 97,264   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Provision for income taxes

   $ 64,390       $ 266      $ 64,656       $ 31,930       $ 445      $ 32,375   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net income

   $ 120,199       $ 541      $ 120,740       $ 63,985       $ 904      $ 64,889   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Earnings per share:

               

Net income per share, basic

   $ 1.34       $ 0.01      $ 1.35       $ 0.74       $ 0.01      $ 0.75   

Net income per share, diluted

   $ 1.33       $ 0.01      $ 1.34       $ 0.73       $ 0.01      $ 0.74   

 

The following table presents the impact of these corrections on affected unaudited condensed consolidated statement of cash flows line items for the nine months ended September 30, 2013:

 

     For the Nine Months Ended
September 30, 2013
 
     As
Previously
Reported
     Adjustments     As Revised  

Selected Statements of Cash Flows Data:

       

Net cash provided by operating activities

   $ 276,317       $ (3,333   $ 272,984   
  

 

 

    

 

 

   

 

 

 

Net cash provided by financing activities

   $ 14,327       $ 3,333      $ 17,660   
  

 

 

    

 

 

   

 

 

 

The following table presents the impact of these corrections on affected unaudited condensed consolidated balance sheet line items as of December 31, 2013:

 

     As of December 31, 2013  
     As
Previously
Reported
     Adjustments     As Revised  

Selected Balance Sheet Data:

  

Other assets

   $ 40,753       $ (4,863   $ 35,890   
  

 

 

    

 

 

   

 

 

 

Total assets

   $ 2,582,273       $ (4,863   $ 2,577,410   
  

 

 

    

 

 

   

 

 

 

Long-term debt

   $ 1,627,183       $ 5,348      $ 1,632,531   
  

 

 

    

 

 

   

 

 

 

Deferred tax liabilities, net

   $ 29,776       $ (4,106   $ 25,670   
  

 

 

    

 

 

   

 

 

 

Retained earnings

   $ 7,991       $ (6,105   $ 1,886   
  

 

 

    

 

 

   

 

 

 

Total stockholders’ equity

   $ 654,132       $ (6,105   $ 648,027   
  

 

 

    

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,582,273       $ (4,863   $ 2,577,410   
  

 

 

    

 

 

   

 

 

 

 

The following tables present the impact of these corrections for other previously issued periods as indicated:

 

    For the Year Ended December 31, 2013     For the Year Ended December 31, 2012     For the Year Ended December 31, 2011  
    As
Previously
Reported
    Adjustments     As
Revised
    As
Previously
Reported
    Adjustments     As
Revised
    As
Previously
Reported
    Adjustments     As
Revised
 

Selected Statements of Comprehensive Income Data:

  

Operating expenses

  $ 739,989      $ 3,333      $ 743,322      $ 726,509      $ 4,073      $ 730,582      $ 687,999      $ 4,326      $ 692,325   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense

  $ 93,536      $ (2,914   $ 90,622      $ 111,426      $ (861   $ 110,565      $ 110,097      $ (12,356   $ 97,741   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss on early extinguishment of debt and write-off of discounts and deferred financing costs

  $ 32,429      $ (2,571   $ 29,858      $ —        $ 2,053      $ 2,053      $ —        $ 15,129      $ 15,129   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

  $ 75,482      $ 2,152      $ 77,634      $ 116,926      $ (5,265   $ 111,661      $ 32,541      $ (7,099   $ 25,442   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Provision for income taxes

  $ 25,004      $ 710      $ 25,714      $ 39,482      $ (2,042   $ 37,440      $ 13,428      $ (2,775   $ 10,653   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 50,478      $ 1,442      $ 51,920      $ 77,444      $ (3,223   $ 74,221      $ 19,113      $ (4,324   $ 14,789   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

  

Net income per share, basic

  $ 0.58      $ 0.01      $ 0.59      $ 0.94      $ (0.04   $ 0.90      $ 0.23      $ (0.05   $ 0.18   

Net income per share, diluted

  $ 0.57      $ 0.02      $ 0.59      $ 0.93      $ (0.04   $ 0.89      $ 0.23      $ (0.05   $ 0.18   

Selected Statements of Cash Flows Data:

  

Net cash provided by operating activities

  $ 289,794      $ (3,333   $ 286,461      $ 303,513      $ (4,073   $ 299,440      $ 268,249      $ (4,326   $ 263,923   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

  $ (52,252   $ 3,333      $ (48,919   $ (120,183   $ 4,073      $ (116,110   $ (99,967   $ 4,326      $ (95,641
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    For the Three Months Ended
June 30, 2014
    For the Three Months Ended
June 30, 2013
 
    As Previously
Reported
    Adjustments     As Revised     As Previously
Reported
    Adjustments     As Revised  

Selected Statements of Comprehensive Income (Loss) Data:

 

Operating expenses

  $ 189,190      $ —        $ 189,190      $ 194,674      $ 3,333      $ 198,007   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense

  $ 20,638      $ (112   $ 20,526      $ 22,926      $ (694   $ 22,232   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss on early extinguishment of debt and write-off of discounts and deferred financing costs

  $ —        $ —        $ —        $ 32,429      $ (2,571   $ 29,858   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

  $ 59,994      $ 112      $ 60,106      $ (24,268   $ (68   $ (24,336
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Provision for (benefit from) income taxes

  $ 22,658      $ 42      $ 22,700      $ (8,414   $ (22   $ (8,436
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

  $ 37,336      $ 70      $ 37,406      $ (15,854   $ (46   $ (15,900
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) per share:

           

Net income (loss) per share, basic

  $ 0.43      $ —        $ 0.43      $ (0.18   $ —        $ (0.18

Net income (loss) per share, diluted

  $ 0.43      $ —        $ 0.43      $ (0.18   $ —        $ (0.18

 

     For the Three Months Ended
March 31, 2014
    For the Three Months Ended
March 31, 2013
 
     As Previously
Reported
    Adjustments     As Revised     As Previously
Reported
    Adjustments     As Revised  

Selected Statements of Comprehensive Loss Data:

            

Interest expense

   $ 20,046      $ (342   $ 19,704      $ 28,606      $ (610   $ 27,996   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

   $ (79,471   $ 342      $ (79,129   $ (64,406   $ 610      $ (63,796
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Benefit from income taxes

   $ (30,040   $ 128      $ (29,912   $ (24,046   $ 201      $ (23,845
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (49,431   $ 214      $ (49,217   $ (40,360   $ 409      $ (39,951
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss per share:

            

Net loss per share, basic

   $ (0.56   $ —        $ (0.56   $ (0.49   $ 0.01      $ (0.48

Net loss per share, diluted

   $ (0.56   $ —        $ (0.56   $ (0.49   $ 0.01      $ (0.48

 

Description of the Business and Basis of Presentation (Tables)

The following table presents the impact of these corrections on affected unaudited condensed consolidated statements of comprehensive income line items for the three and nine months ended September 30, 2013:

 

     For the Three Months Ended
September 30, 2013
     For the Nine Months Ended
September 30, 2013
 
     As Previously
Reported
     Adjustments     As Revised      As Previously
Reported
     Adjustments     As Revised  

Selected Statements of Comprehensive Income Data:

          

Operating expenses

   $ 202,625       $ —        $ 202,625       $ 570,559       $ 3,333      $ 573,892   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Interest expense

   $ 21,018       $ (807   $ 20,211       $ 72,550       $ (2,111   $ 70,439   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Loss on early extinguishment of debt and write-off of discounts and deferred financing costs

   $ —         $ —        $ —         $ 32,429       $ (2,571   $ 29,858   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Income before income taxes

   $ 184,589       $ 807      $ 185,396       $ 95,915       $ 1,349      $ 97,264   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Provision for income taxes

   $ 64,390       $ 266      $ 64,656       $ 31,930       $ 445      $ 32,375   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Net income

   $ 120,199       $ 541      $ 120,740       $ 63,985       $ 904      $ 64,889   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Earnings per share:

               

Net income per share, basic

   $ 1.34       $ 0.01      $ 1.35       $ 0.74       $ 0.01      $ 0.75   

Net income per share, diluted

   $ 1.33       $ 0.01      $ 1.34       $ 0.73       $ 0.01      $ 0.74   

The following tables present the impact of these corrections for other previously issued periods as indicated:

 

    For the Year Ended December 31, 2013     For the Year Ended December 31, 2012     For the Year Ended December 31, 2011  
    As
Previously
Reported
    Adjustments     As
Revised
    As
Previously
Reported
    Adjustments     As
Revised
    As
Previously
Reported
    Adjustments     As
Revised
 

Selected Statements of Comprehensive Income Data:

                 

Operating expenses

  $ 739,989      $ 3,333      $ 743,322      $ 726,509      $ 4,073      $ 730,582      $ 687,999      $ 4,326      $ 692,325   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense

  $ 93,536      $ (2,914   $ 90,622      $ 111,426      $ (861   $ 110,565      $ 110,097      $ (12,356   $ 97,741   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss on early extinguishment of debt and write-off of discounts and deferred financing costs

  $ 32,429      $ (2,571   $ 29,858      $ —        $ 2,053      $ 2,053      $ —        $ 15,129      $ 15,129   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

  $ 75,482      $ 2,152      $ 77,634      $ 116,926      $ (5,265   $ 111,661      $ 32,541      $ (7,099   $ 25,442   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Provision for income taxes

  $ 25,004      $ 710      $ 25,714      $ 39,482      $ (2,042   $ 37,440      $ 13,428      $ (2,775   $ 10,653   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 50,478      $ 1,442      $ 51,920      $ 77,444      $ (3,223   $ 74,221      $ 19,113      $ (4,324   $ 14,789   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

                 

Net income per share, basic

  $ 0.58      $ 0.01      $ 0.59      $ 0.94      $ (0.04   $ 0.90      $ 0.23      $ (0.05   $ 0.18   

Net income per share, diluted

  $ 0.57      $ 0.02      $ 0.59      $ 0.93      $ (0.04   $ 0.89      $ 0.23      $ (0.05   $ 0.18   
  For the Three Months Ended
June 30, 2014
    For the Three Months Ended
June 30, 2013
 
    As Previously
Reported
    Adjustments     As Revised     As Previously
Reported
    Adjustments     As Revised  

Selected Statements of Comprehensive Income (Loss) Data:

 

Operating expenses

  $ 189,190      $ —        $ 189,190      $ 194,674      $ 3,333      $ 198,007   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense

  $ 20,638      $ (112   $ 20,526      $ 22,926      $ (694   $ 22,232   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss on early extinguishment of debt and write-off of discounts and deferred financing costs

  $ —        $ —        $ —        $ 32,429      $ (2,571   $ 29,858   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

  $ 59,994      $ 112      $ 60,106      $ (24,268   $ (68   $ (24,336
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Provision for (benefit from) income taxes

  $ 22,658      $ 42      $ 22,700      $ (8,414   $ (22   $ (8,436
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

  $ 37,336      $ 70      $ 37,406      $ (15,854   $ (46   $ (15,900
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) per share:

           

Net income (loss) per share, basic

  $ 0.43      $ —        $ 0.43      $ (0.18   $ —        $ (0.18

Net income (loss) per share, diluted

  $ 0.43      $ —        $ 0.43      $ (0.18   $ —        $ (0.18

 

     For the Three Months Ended
March 31, 2014
    For the Three Months Ended
March 31, 2013
 
     As Previously
Reported
    Adjustments     As Revised     As Previously
Reported
    Adjustments     As Revised  

Selected Statements of Comprehensive Loss Data:

            

Interest expense

   $ 20,046      $ (342   $ 19,704      $ 28,606      $ (610   $ 27,996   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

   $ (79,471   $ 342      $ (79,129   $ (64,406   $ 610      $ (63,796
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Benefit from income taxes

   $ (30,040   $ 128      $ (29,912   $ (24,046   $ 201      $ (23,845
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (49,431   $ 214      $ (49,217   $ (40,360   $ 409      $ (39,951
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss per share:

            

Net loss per share, basic

   $ (0.56   $ —        $ (0.56   $ (0.49   $ 0.01      $ (0.48

Net loss per share, diluted

   $ (0.56   $ —        $ (0.56   $ (0.49   $ 0.01      $ (0.48

The following table presents the impact of these corrections on affected unaudited condensed consolidated statement of cash flows line items for the nine months ended September 30, 2013:

 

     For the Nine Months Ended  
     September 30, 2013  
     As Previously
Reported
     Adjustments     As Revised  

Selected Statements of Cash Flows Data:

       

Net cash provided by operating activities

   $ 276,317       $ (3,333   $ 272,984   
  

 

 

    

 

 

   

 

 

 

Net cash provided by financing activities

   $ 14,327       $ 3,333      $ 17,660   
  

 

 

    

 

 

   

 

 

 

 

 

    For the Year Ended December 31, 2013     For the Year Ended December 31, 2012     For the Year Ended December 31, 2011  
    As
Previously
Reported
    Adjustments     As
Revised
    As
Previously
Reported
    Adjustments     As
Revised
    As
Previously
Reported
    Adjustments     As
Revised
 
     

Selected Statements of Cash Flows Data:

                 

Net cash provided by operating activities

  $ 289,794      $ (3,333   $ 286,461      $ 303,513      $ (4,073   $ 299,440      $ 268,249      $ (4,326   $ 263,923   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

  $ (52,252   $ 3,333      $ (48,919   $ (120,183   $ 4,073      $ (116,110   $ (99,967   $ 4,326      $ (95,641
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table presents the impact of these corrections on affected unaudited condensed consolidated balance sheet line items as of December 31, 2013:

 

     As of December 31, 2013  
     As
Previously
Reported
     Adjustments     As Revised  

Selected Balance Sheet Data:

  

Other assets

   $ 40,753       $ (4,863   $ 35,890   
  

 

 

    

 

 

   

 

 

 

Total assets

   $ 2,582,273       $ (4,863   $ 2,577,410   
  

 

 

    

 

 

   

 

 

 

Long-term debt

   $ 1,627,183       $ 5,348      $ 1,632,531   
  

 

 

    

 

 

   

 

 

 

Deferred tax liabilities, net

   $ 29,776       $ (4,106   $ 25,670   
  

 

 

    

 

 

   

 

 

 

Retained earnings

   $ 7,991       $ (6,105   $ 1,886   
  

 

 

    

 

 

   

 

 

 

Total stockholders’ equity

   $ 654,132       $ (6,105   $ 648,027   
  

 

 

    

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,582,273       $ (4,863   $ 2,577,410   
  

 

 

    

 

 

   

 

 

Earnings Per Share (Tables)
Schedule of Earnings Per Share

Earnings per share is computed as follows:

 

     Three Months Ended September 30,      Nine Months Ended September 30,  
     2014      2013      2014      2013  
     Net
Income
     Shares      Per
Share
Amount
     Net
Income
     Shares      Per
Share
Amount
     Net
Income
     Shares      Per
Share
Amount
     Net
Income
     Shares      Per
Share
Amount
 

Basic earnings per share

   $ 87,176         86,715       $ 1.01       $ 120,740         89,610       $ 1.35       $ 75,365         87,329       $ 0.86       $ 64,889         86,867       $ 0.75   

Effect of dilutive incentive-based awards

        309               596               319               664      
     

 

 

          

 

 

          

 

 

          

 

 

    

Diluted earnings per share

   $ 87,176         87,024       $ 1.00       $ 120,740         90,206       $ 1.34       $ 75,365         87,648       $ 0.86       $ 64,889         87,531       $ 0.74   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

Other Accrued Expenses (Tables)
Schedule of Other Accrued Expenses

Other accrued expenses at September 30, 2014 and December 31, 2013, consisted of the following:

 

     September 30,
2014
     December 31,
2013
 

Accrued property taxes

   $ 10,952       $ 2,113   

Accrued interest

     9,756         2,636   

Self-insurance reserve

     7,800         7,800   

Other

     2,177         2,715   
  

 

 

    

 

 

 

Total other accrued expenses

   $ 30,685       $ 15,264   
  

 

 

    

 

 

Long-Term Debt (Tables)

Long-term debt as of September 30, 2014 and December 31, 2013 consisted of the following:

 

     September 30,
2014
    December 31,
2013
 

Term B-2 Loans

   $ 1,355,950      $ 1,397,975   

Revolving credit agreement

     —          —     

Senior Notes

     260,000        260,000   
  

 

 

   

 

 

 

Total long-term debt

     1,615,950        1,657,975   

Less discounts

     (9,531     (11,394

Less current maturities

     (14,050     (14,050
  

 

 

   

 

 

 

Total long-term debt, net of current maturities

   $ 1,592,369      $ 1,632,531   
  

 

 

   

 

 

Long-term debt at September 30, 2014, is repayable as follows:

 

Years Ending December 31,

 

2014

   $ 3,513   

2015

     14,050   

2016

     274,050   

2017

     14,050   

2018

     14,050   

Thereafter

     1,296,237   
  

 

 

 

Total

   $  1,615,950   
  

 

 

Derivative Instruments and Hedging Activities (Tables)

Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheet as of September 30, 2014:

 

     As of September 30, 2014  
     Asset Derivatives      Liabilities Derivatives  
   Balance Sheet
Location
   Fair Value      Balance Sheet
Location
   Fair Value  

Derivatives designated as hedging instruments:

           

Interest rate swaps

   Other assets    $ —         Other liabilities    $ 148   
     

 

 

       

 

 

 

Total derivatives designated as hedging instruments

      $ —            $ 148   
     

 

 

       

 

 

 

The unrealized gain on derivatives is recorded net of a tax expense of $664 and $4 for the three and nine months ended September 30, 2014, respectively, and is included within the unaudited condensed consolidated statements of comprehensive income.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated balance sheet as of December 31, 2013:

 

     As of December 31, 2013  
     Asset Derivatives      Liabilities Derivatives  
     Balance Sheet
Location
     Fair Value      Balance Sheet
Location
     Fair Value  

Derivatives designated as hedging instruments:

           

Interest rate swaps

     Other assets       $ 71         Other liabilities       $ —     
     

 

 

       

 

 

 

Total derivatives designated as hedging instruments

      $ 71          $ —     
     

 

 

       

 

 

 

Tabular Disclosure of the Effect of Derivative Instruments on the Statements of Comprehensive Income

The table below presents the pre-tax effect of the Company’s derivative financial instruments on the unaudited condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2014 and 2013:

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2014      2013     2014     2013  

Derivatives in Cash Flow Hedging Relationships:

         

Gain (loss) related to effective portion of derivatives recognized in accumulated other comprehensive income

   $ 1,005       $ (1,380   $ (1,868   $ 3,338   

Gain (loss) related to effective portion of derivatives reclassified from accumulated other comprehensive income to interest expense

   $ 746       $ (422   $ 1,879      $ (1,144

Gain (loss) related to ineffective portion of derivatives recognized in other income (expense)

   $ —         $ —        $ —        $ —     

 

Changes in Accumulated Other Comprehensive Income

The following table reflects the changes in accumulated other comprehensive income for the nine months ended September 30, 2014, net of tax:

 

     Gains
(Losses) on
Cash Flow
Hedges
 
Accumulated other comprehensive income:   

Balance at December 31, 2013

   $ 11   

Other comprehensive loss before reclassifications

     (1,189

Amounts reclassified from accumulated other comprehensive income to interest expense

     1,196   
  

 

 

 

Unrealized gain on derivatives, net of tax

     7   
  

 

 

 

Balance at September 30, 2014

   $ 18   
  

 

 

 

 

Fair Value Measurements (Tables)
Schedule of Assets and Liabilities Measured at Fair Value

The following table presents the Company’s estimated fair value measurements and related classifications as of September 30, 2014:

 

     Quoted Prices in
Active Markets
for Identical
Assets and
Liabilities
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
     Significant
Unobservable
Inputs
(Level 3)
     Balance at
September 30,
2014
 

Liabilities:

           

Derivative financial instruments (a)

   $ —         $ 148       $ —         $ 148   

Long-term obligations (b)

   $ —         $ 1,355,950       $ 267,187       $ 1,623,137   

 

(a) Reflected at fair value in the unaudited condensed consolidated balance sheet as other liabilities of $148.
(b) Reflected at carrying value in the unaudited condensed consolidated balance sheet as current maturities on long-term debt of $14,050 and long-term debt of $1,592,369 as of September 30, 2014.

There were no transfers between Levels 1, 2 or 3 during the year ended December 31, 2013. The following table presents the Company’s estimated fair value measurements and related classifications as of December 31, 2013:

 

     Quoted Prices in
Active Markets
for Identical
Assets and
Liabilities
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
     Significant
Unobservable
Inputs
(Level 3)
     Balance at
December 31,
2013
 

Assets:

           

Derivative financial instruments (a)

   $ —         $ 71       $ —         $ 71   

Liabilities:

           

Long-term obligations (b)

   $ —         $ 1,397,975       $ 264,781       $ 1,662,756   

 

(a) Reflected at fair value in the unaudited condensed consolidated balance sheet as other assets of $71.
(b) Reflected at carrying value in the unaudited condensed consolidated balance sheet as current maturities on long-term debt of $14,050 and long-term debt of $1,632,531 as of December 31, 2013.
Stockholders' Equity (Tables)
Schedule of Quarterly Cash Dividends to Common Stockholders

In the nine months ended September 30, 2014, the Board declared or paid quarterly cash dividends to all common stockholders of record as follows:

 

Record Date

  

Payment Date

   Cash Dividend
per Common
Share
 

December 20, 2013

   January 3, 2014    $ 0.20   

March 20, 2014

   April 1, 2014    $ 0.20   

June 20, 2014

   July 1, 2014    $ 0.21   

September 29, 2014

   October 6, 2014    $ 0.21   
Description of the Business and Basis of Presentation - Additional Information (Detail)
9 Months Ended
Sep. 30, 2014
Segment
Partnership
Business
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Number of limited partnerships which owned the Company
10 
Number of theme parks owned and operated
11 
Number of reportable segment
Description of the Business and Basis of Presentation - Schedule of Impact of Corrections on Affected Condensed Consolidated Statements of Comprehensive Income Line Items (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Jun. 30, 2014
As Previously Reported [Member]
Mar. 31, 2014
As Previously Reported [Member]
Sep. 30, 2013
As Previously Reported [Member]
Jun. 30, 2013
As Previously Reported [Member]
Mar. 31, 2013
As Previously Reported [Member]
Sep. 30, 2013
As Previously Reported [Member]
Dec. 31, 2013
As Previously Reported [Member]
Dec. 31, 2012
As Previously Reported [Member]
Dec. 31, 2011
As Previously Reported [Member]
Jun. 30, 2014
Adjustments [Member]
Mar. 31, 2014
Adjustments [Member]
Sep. 30, 2013
Adjustments [Member]
Jun. 30, 2013
Adjustments [Member]
Mar. 31, 2013
Adjustments [Member]
Sep. 30, 2013
Adjustments [Member]
Dec. 31, 2013
Adjustments [Member]
Dec. 31, 2012
Adjustments [Member]
Dec. 31, 2011
Adjustments [Member]
Jun. 30, 2014
Scenario As Revised [Member]
Mar. 31, 2014
Scenario As Revised [Member]
Sep. 30, 2013
Scenario As Revised [Member]
Jun. 30, 2013
Scenario As Revised [Member]
Mar. 31, 2013
Scenario As Revised [Member]
Sep. 30, 2013
Scenario As Revised [Member]
Dec. 31, 2013
Scenario As Revised [Member]
Dec. 31, 2012
Scenario As Revised [Member]
Dec. 31, 2011
Scenario As Revised [Member]
Selected Statements of Comprehensive Income (Loss) Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses
$ 200,891 
$ 202,625 
$ 557,993 
$ 573,892 
$ 189,190 
 
$ 202,625 
$ 194,674 
 
$ 570,559 
$ 739,989 
$ 726,509 
$ 687,999 
 
 
 
$ 3,333 
 
$ 3,333 
$ 3,333 
$ 4,073 
$ 4,326 
$ 189,190 
 
$ 202,625 
$ 198,007 
 
$ 573,892 
$ 743,322 
$ 730,582 
$ 692,325 
Interest expense
20,857 
20,211 
61,087 
70,439 
20,638 
20,046 
21,018 
22,926 
28,606 
72,550 
93,536 
111,426 
110,097 
(112)
(342)
(807)
(694)
(610)
(2,111)
(2,914)
(861)
(12,356)
20,526 
19,704 
20,211 
22,232 
27,996 
70,439 
90,622 
110,565 
97,741 
Loss on early extinguishment of debt and write-off of discounts and deferred financing costs
 
 
 
 
 
 
 
32,429 
 
32,429 
32,429 
 
 
 
 
 
(2,571)
 
(2,571)
(2,571)
2,053 
15,129 
 
 
 
29,858 
 
29,858 
29,858 
2,053 
15,129 
Income (loss) before income taxes
140,653 
185,396 
121,630 
97,264 
59,994 
(79,471)
184,589 
(24,268)
(64,406)
95,915 
75,482 
116,926 
32,541 
112 
342 
807 
(68)
610 
1,349 
2,152 
(5,265)
(7,099)
60,106 
(79,129)
185,396 
(24,336)
(63,796)
97,264 
77,634 
111,661 
25,442 
Provision for (benefit from) income taxes
53,477 
64,656 
46,265 
32,375 
22,658 
(30,040)
64,390 
(8,414)
(24,046)
31,930 
25,004 
39,482 
13,428 
42 
128 
266 
(22)
201 
445 
710 
(2,042)
(2,775)
22,700 
(29,912)
64,656 
(8,436)
(23,845)
32,375 
25,714 
37,440 
10,653 
Net income (loss)
$ 87,176 
$ 120,740 
$ 75,365 
$ 64,889 
$ 37,336 
$ (49,431)
$ 120,199 
$ (15,854)
$ (40,360)
$ 63,985 
$ 50,478 
$ 77,444 
$ 19,113 
$ 70 
$ 214 
$ 541 
$ (46)
$ 409 
$ 904 
$ 1,442 
$ (3,223)
$ (4,324)
$ 37,406 
$ (49,217)
$ 120,740 
$ (15,900)
$ (39,951)
$ 64,889 
$ 51,920 
$ 74,221 
$ 14,789 
Earnings (loss) per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per share, basic
$ 1.01 
$ 1.35 
$ 0.86 
$ 0.75 
$ 0.43 
$ (0.56)
$ 1.34 
$ (0.18)
$ (0.49)
$ 0.74 
$ 0.58 
$ 0.94 
$ 0.23 
 
 
$ 0.01 
 
$ 0.01 
$ 0.01 
$ 0.01 
$ (0.04)
$ (0.05)
$ 0.43 
$ (0.56)
$ 1.35 
$ (0.18)
$ (0.48)
$ 0.75 
$ 0.59 
$ 0.90 
$ 0.18 
Net income (loss) per share, diluted
$ 1.00 
$ 1.34 
$ 0.86 
$ 0.74 
$ 0.43 
$ (0.56)
$ 1.33 
$ (0.18)
$ (0.49)
$ 0.73 
$ 0.57 
$ 0.93 
$ 0.23 
 
 
$ 0.01 
 
$ 0.01 
$ 0.01 
$ 0.02 
$ (0.04)
$ (0.05)
$ 0.43 
$ (0.56)
$ 1.34 
$ (0.18)
$ (0.48)
$ 0.74 
$ 0.59 
$ 0.89 
$ 0.18 
Description of the Business and Basis of Presentation - Schedule of Impact of Corrections on Affected Condensed Consolidated Statement of Cash Flows Line Items (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Selected Statements of Cash Flows Data:
 
 
 
 
 
Net cash provided by operating activities
$ 269,939 
$ 272,984 
$ 286,461 
$ 299,440 
$ 263,923 
Net cash provided by financing activities
(146,506)
17,660 
(48,919)
(116,110)
(95,641)
As Previously Reported [Member]
 
 
 
 
 
Selected Statements of Cash Flows Data:
 
 
 
 
 
Net cash provided by operating activities
 
276,317 
289,794 
303,513 
268,249 
Net cash provided by financing activities
 
14,327 
(52,252)
(120,183)
(99,967)
Adjustments [Member]
 
 
 
 
 
Selected Statements of Cash Flows Data:
 
 
 
 
 
Net cash provided by operating activities
 
(3,333)
(3,333)
(4,073)
(4,326)
Net cash provided by financing activities
 
$ 3,333 
$ 3,333 
$ 4,073 
$ 4,326 
Description of the Business and Basis of Presentation - Schedule of Impact of Corrections on Affected Condensed Consolidated Balance Sheet Line Items (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Selected Balance Sheet Data:
 
 
Other assets
$ 32,956 
$ 35,890 
Total assets
2,531,417 
2,577,410 
Long-term debt
1,592,369 
1,632,531 
Deferred tax liabilities, net
50,230 
25,670 
Retained earnings
58,962 
1,886 
Total stockholders' equity
620,117 
648,027 
Total liabilities and stockholders' equity
2,531,417 
2,577,410 
As Previously Reported [Member]
 
 
Selected Balance Sheet Data:
 
 
Other assets
 
40,753 
Total assets
 
2,582,273 
Long-term debt
 
1,627,183 
Deferred tax liabilities, net
 
29,776 
Retained earnings
 
7,991 
Total stockholders' equity
 
654,132 
Total liabilities and stockholders' equity
 
2,582,273 
Adjustments [Member]
 
 
Selected Balance Sheet Data:
 
 
Other assets
 
(4,863)
Total assets
 
(4,863)
Long-term debt
 
5,348 
Deferred tax liabilities, net
 
(4,106)
Retained earnings
 
(6,105)
Total stockholders' equity
 
(6,105)
Total liabilities and stockholders' equity
 
$ (4,863)
Earnings Per Share - Schedule of Earnings Per Share (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Earnings Per Share [Abstract]
 
 
 
 
Basic earnings per share, Net Income
$ 87,176 
$ 120,740 
$ 75,365 
$ 64,889 
Diluted earnings per share, Net Income
$ 87,176 
$ 120,740 
$ 75,365 
$ 64,889 
Basic earnings per share, Shares
86,715 
89,610 
87,329 
86,867 
Effect of dilutive incentive-based awards, Shares
309 
596 
319 
664 
Diluted earnings per share, Shares
87,024 
90,206 
87,648 
87,531 
Basic earnings per share, Per Share Amount
$ 1.01 
$ 1.35 
$ 0.86 
$ 0.75 
Diluted earnings per share, Per Share Amount
$ 1.00 
$ 1.34 
$ 0.86 
$ 0.74 
Earnings Per Share - Additional Information (Detail)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Earnings Per Share [Abstract]
 
 
 
 
Antidilutive shares of common stock excluded from the computation of diluted earnings per share
27,000 
21,000 
Income Taxes - Additional Information (Detail)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Income Tax Disclosure [Abstract]
 
 
 
 
Effective tax rate
38.00% 
34.90% 
38.00% 
33.30% 
Other Accrued Expenses - Schedule of Other Accrued Expenses (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Payables and Accruals [Abstract]
 
 
Accrued property taxes
$ 10,952 
$ 2,113 
Accrued interest
9,756 
2,636 
Self-insurance reserve
7,800 
7,800 
Other
2,177 
2,715 
Total other accrued expenses
$ 30,685 
$ 15,264 
Long-Term Debt - Summary of Long-Term Debt (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Long-term debt
$ 1,615,950 
$ 1,657,975 
Long-term debt
1,615,950 
1,657,975 
Less discounts
(9,531)
(11,394)
Less current maturities
(14,050)
(14,050)
Total long-term debt, net of current maturities
1,592,369 
1,632,531 
Revolving Credit Agreement [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
   
   
Long-term debt
   
   
Term B-2 Loans [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
1,355,950 
1,397,975 
Long-term debt
1,355,950 
1,397,975 
Senior Notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
260,000 
260,000 
Long-term debt
$ 260,000 
$ 260,000 
Long-Term Debt - Additional Information (Detail) (USD $)
9 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Sep. 30, 2014
Revolving Credit Agreement [Member]
Sep. 30, 2013
Revolving Credit Agreement [Member]
Dec. 31, 2013
Revolving Credit Agreement [Member]
Sep. 30, 2014
Senior Secured Credit Facilities [Member]
Sep. 30, 2014
New Senior Secured Revolving Credit [Member]
Sep. 30, 2014
Base Rate Loan [Member]
Revolving Credit Agreement [Member]
Sep. 30, 2014
LIBOR Rate Loan [Member]
Revolving Credit Agreement [Member]
Sep. 30, 2014
Interest Rate Swaps [Member]
Swap
May 14, 2013
Interest Rate Swaps [Member]
Swap
Aug. 23, 2012
Interest Rate Swaps [Member]
Swap
Sep. 30, 2014
Interest Rate Swaps [Member]
Minimum [Member]
Sep. 30, 2014
Interest Rate Swaps [Member]
Maximum [Member]
May 14, 2013
Interest Rate Swap One [Member]
Aug. 23, 2012
Interest Rate Swap One [Member]
May 14, 2013
Interest Rate Swap Two [Member]
Aug. 23, 2012
Interest Rate Swap Two [Member]
Apr. 24, 2013
Senior Notes [Member]
Sep. 30, 2014
Senior Notes [Member]
Dec. 31, 2013
Senior Notes [Member]
Apr. 24, 2013
Senior Notes [Member]
Dec. 1, 2009
Senior Notes [Member]
Apr. 24, 2013
Senior Notes [Member]
Prior to December 1, 2014 [Member]
Sep. 30, 2014
Senior Notes [Member]
Prior to December 1, 2014 [Member]
Sep. 30, 2014
Senior Notes [Member]
On or After December 1, 2014 [Member]
Sep. 30, 2014
Senior Notes [Member]
On or After December 1, 2015 [Member]
Apr. 24, 2013
Term B Loan [Member]
Sep. 30, 2014
Term B Loan [Member]
Interest Rate Swaps [Member]
Sep. 30, 2014
Term B-2 Loans [Member]
Dec. 31, 2013
Term B-2 Loans [Member]
May 14, 2013
Term B-2 Loans [Member]
Dec. 1, 2009
Term B-2 Loans [Member]
Sep. 30, 2014
Term B-2 Loans [Member]
Federal Funds Rate [Member]
Sep. 30, 2014
Term B-2 Loans [Member]
Base Rate Loan [Member]
Sep. 30, 2014
Term B-2 Loans [Member]
LIBOR Rate Loan [Member]
Sep. 30, 2014
Term B-2 Loans [Member]
Interest Rate Swaps [Member]
Mar. 31, 2014
Term B-2 Loans [Member]
Interest Rate Swaps [Member]
Sep. 30, 2014
Restricted Covenants [Member]
Sep. 30, 2014
Restricted Covenants [Member]
Senior Secured Credit Facilities [Member]
Sep. 30, 2014
Restricted Covenants [Member]
Senior Notes [Member]
Sep. 30, 2014
Restricted Covenants [Member]
Scenario One [Member]
Sep. 30, 2014
Restricted Covenants [Member]
Scenario Two [Member]
Sep. 30, 2014
Restricted Covenants [Member]
Scenario Three [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, balance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 400,000,000 
 
 
 
 
 
 
 
 
 
$ 1,405,000,000 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, maturity date
 
 
 
Apr. 24, 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec. 01, 2016 
 
 
 
 
 
 
 
 
 
May 14, 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayment of portion of Term Loan B
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
37,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayment of Senior Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
140,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redemption price for Senior Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
111.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred financing costs, net
21,788,000 
 
27,453,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
1,615,950,000 
 
1,657,975,000 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
260,000,000 
260,000,000 
 
 
 
 
 
 
 
 
1,355,950,000 
1,397,975,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior secured revolving credit facility outstanding
 
 
 
 
 
 
 
192,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of days used to calculate maturity
 
 
 
91 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount aggregate principal outstanding must be greater than to use the corresponding instrument's maturity date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior secured revolving credit facility, maturity date, description
 
 
 
The Revolving Credit Facility will mature on the earlier of (a) April 24, 2018 and (b) the 91st day prior to the earlier of (1) the maturity date of Senior Notes with an aggregate principal amount greater than $50,000 outstanding and (2) the maturity date of any indebtedness incurred to refinance any of the term loans or the Senior Notes. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate, description
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings under the Secured Credit Facilities bear interest, at SEA’s option, at a rate equal to a margin over either (a) a base rate determined by reference to the higher of (1) the Bank of America’s prime lending rate and (2) the federal funds effective rate plus 1/2 of 1% or (b) a LIBOR rate determined by reference to the British Bankers Association (“BBA”) LIBOR rate, or the successor thereto if the BBA is no longer making a LIBOR rate available, for the interest period relevant to such borrowing. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Applicable margin for Term Loans
 
 
 
 
 
 
 
 
1.75% 
2.75% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.50% 
1.25% 
2.25% 
 
 
 
 
 
 
 
 
Floor rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.75% 
0.75% 
 
 
 
 
 
 
 
 
Basis point step-down in applicable margin, description
 
 
 
The applicable margin for borrowings under the Revolving Credit Facility is 1.75%, in the case of base rate loans, and 2.75%, in the case of LIBOR rate loans. The applicable margin (under either a base rate or LIBOR rate) is subject to one 25 basis point step-down upon achievement by SEA of certain corporate credit ratings. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The applicable margin for the Term B-2 Loans (under either a base rate or LIBOR rate) is subject to one 25 basis point step-down upon achievement by SEA of a certain total leverage ratio. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis point step down on applicable margin upon achievement of certain leverage ratio
 
 
 
0.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective interest rate
3.00% 
 
 
2.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of original principal amount on effective date used to calculate aggregate annual amount which will amortize in equal quarterly installments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Voluntary principal repayment of term loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Permitted increased commitments under the Revolving Credit Facility in aggregate principal amount
 
 
 
350,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
First lien secured net leverage ratio
 
 
 
 
 
 
3.50 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding letters of credit
16,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit available amount
 
 
 
176,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Written off of debt issuance costs
 
8,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt issuance costs
 
 
 
 
3,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized fees
 
10,635,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redemption price for Senior Notes percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
111.00% 
100.00% 
105.50% 
102.75% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of Senior Notes principle amount used to calculate Applicable Premium
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redemption of Senior Notes, description
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior to December 1, 2014, SEA may redeem some or all of the Senior Notes at a price equal to 100% of the principal amount of the Senior Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest to the redemption date, subject to the right of the holders of record on the relevant record date to receive interest due on the relevant interest payment date. The “Applicable Premium” is defined as the greater of (1) 1.0% of the principal amount of the Senior Notes and (2) the excess, if any, of (a) the present value at such redemption date of (i) the redemption price of the Senior Notes at December 1, 2014 plus (ii) all required interest payments due on the Senior Notes through December 1, 2014 (excluding accrued but unpaid interest to the redemption date), computed using a discount rate equal to the Treasury Rate plus 50 basis points over (b) the principal amount of the Senior Notes. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis points over the principal balance of the Senior Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restrictive covenants, description
The Senior Secured Credit Facilities and the indenture governing the Senior Notes contain a number of covenants that, among other things, restrict SEA’s ability and the ability of its restricted subsidiaries to, among other things, make certain restricted payments (as defined in the applicable agreement), including dividend payments and share repurchases. In particular, the Senior Secured Credit Facilities and the indenture permit restricted payments in an aggregate amount per annum not to exceed the greater of (1) 6% of initial public offering net proceeds received by SEA or (2) (a) $90,000, so long as, on a pro forma basis (as defined in the applicable agreement) after giving effect to the payment of any such restricted payment, the Total Leverage Ratio, (as defined in the applicable agreement), is no greater than 5.00 to 1.00 and greater than 4.50 to 1.00, (b) $120,000, so long as, on a pro forma basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 4.50 to 1.00 and greater than 4.00 to 1.00, (c) the greater of (A) $120,000 and (B) 7.5% of market capitalization, so long as, on a pro forma basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 4.00 to 1.00 and greater than 3.50 to 1.00 and (d) an unlimited amount, so long as, on a pro forma basis after giving effect to the payment of any such restricted payment, the Total Leverage Ratio is no greater than 3.50 to 1.00. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of initial public offering net proceeds in restricted payments
6.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted payment on Senior Secured Credit Facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90,000,000 
120,000,000 
120,000,000 
Percentage of market capitalization on restricted payment
7.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum Total Leverage Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.00 
4.50 
4.00 
Minimum Total Leverage Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.50 
4.00 
3.50 
Total Leverage Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.09 
4.41 
 
 
 
Restrictive covenants, restricted payments capacity available
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
120,000,000 
 
 
 
 
 
Restrictive covenants, restricted payments capacity remaining
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,100,000 
 
 
 
 
 
Restrictive covenants, restricted payments used
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
104,900,000 
 
 
 
 
 
Number of interest rate swap held
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional amount of interest rate swap
 
 
 
 
 
 
 
 
 
 
1,000,000,000 
550,000,000 
550,000,000 
 
 
275,000,000 
275,000,000 
275,000,000 
275,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
450,000,000 
 
 
 
 
 
 
Maturity of interest rate swap
 
 
 
 
 
 
 
 
 
 
Sep. 30, 2016 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sep. 30, 2016 
 
 
 
 
 
 
 
Sep. 30, 2016 
 
 
 
 
 
 
 
Fixed rate of interest on swaps
 
 
 
 
 
 
 
 
 
 
 
 
1.247% 
1.049% 
1.051% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Variable rate of interest
 
 
 
 
 
 
 
 
 
 
0.75% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash paid for interest
$ 49,133,000 
$ 59,685,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt - Summary of Long-Term Debt Repayable (Detail) (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Maturities of Long-term Debt [Abstract]
 
 
2014
$ 3,513 
 
2015
14,050 
 
2016
274,050 
 
2017
14,050 
 
2018
14,050 
 
Thereafter
1,296,237 
 
Long-term debt
$ 1,615,950 
$ 1,657,975 
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2014
May 14, 2013
Swap
Sep. 30, 2014
Interest Rate Swaps [Member]
Swap
May 14, 2013
Interest Rate Swaps [Member]
Swap
Aug. 23, 2012
Interest Rate Swaps [Member]
Swap
Sep. 30, 2014
Not Designated as Hedge Accounting Relationships [Member]
Dec. 31, 2013
Not Designated as Hedge Accounting Relationships [Member]
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
 
Derivatives outstanding
 
 
 
 
 
 
$ 0 
$ 0 
Notional amount of interest rate swap
 
 
 
1,000,000,000 
550,000,000 
550,000,000 
 
 
Number of outstanding interest rate derivatives
 
 
 
 
 
Number of restructured interest rate swaps
 
 
 
 
 
 
 
Reclassified as an increase to interest expense, expected during the next 12 months
2,901,000 
2,901,000 
 
 
 
 
 
 
Tax expense on unrealized gain on derivatives
664,000 
4,000 
 
 
 
 
 
 
Termination value of derivatives in net liability position
121,000 
121,000 
 
 
 
 
 
 
Collateral posted relating to credit risk-related contingent features
$ 0 
$ 0 
 
 
 
 
 
 
Derivative Instruments and Hedging Activities - Fair Value of Company's Derivative Financial Instruments Classification on Unaudited Condensed Consolidated Balance Sheet (Detail) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Other Assets [Member]
Dec. 31, 2013
Other Assets [Member]
Interest Rate Swaps [Member]
Sep. 30, 2014
Other Liabilities [Member]
Sep. 30, 2014
Other Liabilities [Member]
Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
 
 
 
 
Asset Derivatives Fair Value
$ 71 
$ 71 
 
 
Liabilities Derivatives Fair Value
 
 
$ 148 
$ 148 
Derivative Instruments and Hedging Activities - Schedule of Pre-tax Effect of Derivative Financial Instruments on Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Derivatives in Cash Flow Hedging Relationships:
 
 
 
 
Gain (loss) related to effective portion of derivatives recognized in accumulated other comprehensive income
$ 1,005 
$ (1,380)
$ (1,868)
$ 3,338 
Gain (loss) related to effective portion of derivatives reclassified from accumulated other comprehensive income to interest expense
$ 746 
$ (422)
$ 1,879 
$ (1,144)
Derivative Instruments and Hedging Activities - Schedule of Changes in Accumulated Other Comprehensive Income (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Accumulated other comprehensive income:
 
 
 
 
Balance at December 31, 2013
 
 
$ 11 
 
Unrealized gain on derivatives, net of tax
1,087 
(1,127)
1,453 
Balance at September 30, 2014
18 
 
18 
 
Gains (Losses) on Cash Flow Hedges [Member]
 
 
 
 
Accumulated other comprehensive income:
 
 
 
 
Balance at December 31, 2013
 
 
11 
 
Other comprehensive loss before reclassifications
 
 
(1,189)
 
Amounts reclassified from accumulated other comprehensive income to interest expense
 
 
1,196 
 
Unrealized gain on derivatives, net of tax
 
 
 
Balance at September 30, 2014
$ 18 
 
$ 18 
 
Fair Value Measurements - Additional Information (Detail) (USD $)
9 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
 
 
Assets measured at fair value
$ 0 
$ 71,000 
Significant Unobservable Inputs (Level 3) [Member]
 
 
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
 
 
Discount rate of Senior Notes
10.48% 
 
Assets measured at fair value
 
   
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Detail) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Assets:
 
 
Derivative financial instruments
$ 0 
$ 71,000 
Liabilities:
 
 
Derivative financial instruments
148,000 
 
Long-term obligations
1,623,137,000 
1,662,756,000 
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) [Member]
 
 
Assets:
 
 
Derivative financial instruments
 
   
Liabilities:
 
 
Derivative financial instruments
   
 
Long-term obligations
   
   
Significant Other Observable Inputs (Level 2) [Member]
 
 
Assets:
 
 
Derivative financial instruments
 
71,000 
Liabilities:
 
 
Derivative financial instruments
148,000 
 
Long-term obligations
1,355,950,000 
1,397,975,000 
Significant Unobservable Inputs (Level 3) [Member]
 
 
Assets:
 
 
Derivative financial instruments
 
   
Liabilities:
 
 
Derivative financial instruments
   
 
Long-term obligations
$ 267,187,000 
$ 264,781,000 
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Parenthetical) (Detail) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative financial instruments
$ 148,000 
 
Derivative financial instruments
71,000 
Current maturities on long-term debt
14,050,000 
14,050,000 
Long-term debt
1,592,369,000 
1,632,531,000 
Other Liabilities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative financial instruments
148,000 
 
Other Assets [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative financial instruments
 
$ 71,000 
Related-Party Transactions - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Mar. 31, 2014
Q1 2014 Declaration [Member]
Sep. 30, 2014
Q1 2014 Declaration [Member]
May 31, 2014
Q2 2014 Declaration [Member]
Sep. 30, 2014
Q2 2014 Declaration [Member]
Sep. 30, 2014
Q3 2014 Declaration [Member]
Sep. 30, 2014
Q3 2014 Declaration [Member]
Apr. 24, 2013
Blackstone and Affiliates [Member]
Sep. 30, 2014
Blackstone and Affiliates [Member]
Sep. 30, 2014
Blackstone and Affiliates [Member]
Sep. 30, 2013
Blackstone and Affiliates [Member]
Apr. 24, 2013
Blackstone and Affiliates [Member]
Apr. 1, 2014
Blackstone and Affiliates [Member]
Q1 2014 Declaration [Member]
Jul. 1, 2014
Blackstone and Affiliates [Member]
Q2 2014 Declaration [Member]
Oct. 6, 2014
Blackstone and Affiliates [Member]
Q3 2014 Declaration [Member]
Subsequent Events [Member]
Related Party Transaction [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advisory Agreement, fees
 
 
 
 
 
 
 
 
 
 
 
$ 0 
$ 0 
$ 2,799,000 
 
 
 
 
Termination fee paid
 
 
 
 
 
 
 
 
 
 
 
 
 
 
46,300,000 
 
 
 
Write-off of 2013 prepaid advisory fee
 
 
 
 
 
 
 
 
 
 
3,772,000 
 
 
 
 
 
 
 
Termination of advisory agreement
 
 
 
50,072,000 
 
 
 
 
 
 
 
 
 
50,072,000 
 
 
 
 
Cash dividends declared per share
$ 0.21 
$ 0.20 
$ 0.62 
$ 0.40 
$ 0.20 
 
$ 0.21 
 
$ 0.21 
 
 
 
 
 
 
 
 
 
Cash dividends declare date
 
 
 
 
 
2014-03 
 
2014-05 
2014-09 
2014-09 
 
 
 
 
 
 
 
 
Cash dividends record date
 
 
 
 
 
Mar. 20, 2014 
 
Jun. 20, 2014 
 
Sep. 29, 2014 
 
 
 
 
 
 
 
 
Cash dividends paid date
 
 
 
 
 
Apr. 01, 2014 
 
Jul. 01, 2014 
 
Oct. 06, 2014 
 
 
 
 
 
 
 
 
Dividends paid to stockholders
 
 
$ 53,639,000 
$ 18,124,000 
 
 
 
 
 
 
 
 
 
 
 
$ 7,849,000 
$ 4,252,000 
$ 4,095,000 
Equity-Based Compensation - Additional Information (Detail) (USD $)
9 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2014
Employee Unit Incentive Plan [Member]
Sep. 30, 2014
Employee Unit Plan and 2013 Grants [Member]
Tranches
Apr. 18, 2013
Units Surrendered for Shares Plan [Member]
Common Stock [Member]
Apr. 19, 2013
2013 Omnibus Incentive Plan [Member]
Sep. 30, 2014
2013 Omnibus Incentive Plan [Member]
Apr. 19, 2013
2013 Omnibus Incentive Plan [Member]
Apr. 18, 2013
Class D Units and Vested TVUs Surrendered for Shares of Stock [Member]
Units Surrendered for Shares Plan [Member]
Common Stock [Member]
Apr. 18, 2013
Unvested TVUs and PVUs Surrendered for Shares of Unvested Restricted Stock [Member]
Units Surrendered for Shares Plan [Member]
Common Stock [Member]
Sep. 30, 2014
2.25x Performance Restricted Shares [Member]
Sep. 30, 2013
2.25x Performance Restricted Shares [Member]
Sep. 30, 2014
2.25x Performance Restricted Shares [Member]
Sep. 30, 2013
2.25x Performance Restricted Shares [Member]
Sep. 30, 2014
2.25x Performance Restricted Shares [Member]
Units Surrendered for Shares Plan [Member]
Sep. 30, 2014
2.25x Performance Restricted Shares [Member]
2013 Omnibus Incentive Plan [Member]
Nov. 1, 2014
2.25x Performance Restricted Shares [Member]
Omnibus Stock Plan [Member]
Subsequent Events [Member]
Units Surrendered for Shares Plan [Member]
Blackstone and Affiliates [Member]
Sep. 30, 2014
2.75x Performance Restricted Shares [Member]
Sep. 30, 2013
2.75x Performance Restricted Shares [Member]
Sep. 30, 2014
2.75x Performance Restricted Shares [Member]
Sep. 30, 2013
2.75x Performance Restricted Shares [Member]
Sep. 30, 2014
2.75x Performance Restricted Shares [Member]
Units Surrendered for Shares Plan [Member]
Sep. 30, 2014
2.75x Performance Restricted Shares [Member]
2013 Omnibus Incentive Plan [Member]
Nov. 1, 2014
2.75x Performance Restricted Shares [Member]
Omnibus Stock Plan [Member]
Subsequent Events [Member]
Units Surrendered for Shares Plan [Member]
Blackstone and Affiliates [Member]
Sep. 30, 2014
Time Restricted Shares [Member]
Sep. 30, 2014
Time Restricted Shares [Member]
Sep. 30, 2014
Time Restricted Shares [Member]
Units Surrendered for Shares Plan [Member]
Sep. 30, 2014
Time Restricted Shares [Member]
2013 Omnibus Incentive Plan [Member]
Sep. 30, 2013
Time Restricted Shares [Member]
2013 Omnibus Incentive Plan [Member]
Sep. 30, 2014
Time Restricted Shares [Member]
2013 Omnibus Incentive Plan [Member]
Sep. 30, 2013
Time Restricted Shares [Member]
2013 Omnibus Incentive Plan [Member]
Sep. 30, 2013
Time Vesting Units and Time Restricted Shares [Member]
Sep. 30, 2013
Time Vesting Units and Time Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Unit Incentive Plan terms
Under the Employee Unit Plan, the Partnerships granted employee units to certain key employees of SEA ("Employee Units"). The Employee Units that were granted were accounted for as equity awards and were divided into three tranches, Time Vesting Units ("TVUs"), 2.25x Performance Vesting Units ("PVUs") and 2.75x PVUs. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of tranches for each equity award
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares provided for surrender of units, in shares
 
 
4,165,861 
 
 
 
949,142 
3,216,719 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity compensation expense
 
 
 
 
 
 
 
 
$ 0 
$ 0 
$ 0 
$ 0 
 
 
 
$ 0 
$ 0 
$ 0 
$ 0 
 
 
 
$ 248,000 
$ 774,000 
 
$ 321,000 
$ 1,876,000 
$ 1,131,000 
$ 3,167,000 
$ 606,000 
$ 1,537,000 
Unrecognized compensation cost
 
 
 
 
 
 
 
 
 
 
 
 
27,734,000 
4,902,000 
 
 
 
 
 
18,584,000 
3,709,000 
 
 
 
539,000 
1,083,000 
 
1,083,000 
 
 
 
Annualized effective compounded return rate
 
 
 
 
 
 
 
 
 
 
20.00% 
 
 
 
 
 
 
15.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on investment
 
 
 
 
 
 
 
 
 
 
2.25x multiple on such funds' investment 
 
 
 
 
 
 
2.75x multiple on such funds' investment 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock reserved for future issuance
 
 
 
 
 
15,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted stock granted to directors, officers and employees
 
 
 
494,557 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional future cash proceeds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 17,000,000 
 
 
 
 
 
 
$ 444,000,000 
 
 
 
 
 
 
 
 
 
Shares available for future issuance
 
 
 
 
14,521,774 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity - Additional Information (Detail) (USD $)
0 Months Ended 9 Months Ended 12 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 0 Months Ended
Oct. 6, 2014
Apr. 8, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Aug. 12, 2014
Sep. 30, 2014
2.25x Performance Restricted Shares [Member]
Sep. 30, 2014
2.75x Performance Restricted Shares [Member]
Apr. 24, 2013
Senior Notes [Member]
Apr. 24, 2013
Senior Notes [Member]
Prior to December 1, 2014 [Member]
Sep. 30, 2014
Senior Notes [Member]
Prior to December 1, 2014 [Member]
Apr. 24, 2013
Term B Loan [Member]
Apr. 24, 2013
Initial Public Offering [Member]
Sep. 30, 2014
Initial Public Offering [Member]
Apr. 24, 2013
Initial Public Offering [Member]
Apr. 24, 2013
Initial Public Offering [Member]
Senior Notes [Member]
Apr. 9, 2014
Underwriters Over-Allotment Option [Member]
Apr. 24, 2013
Underwriters Over-Allotment Option [Member]
Apr. 9, 2014
Secondary Offering [Member]
Dec. 17, 2013
Secondary Offering [Member]
Sep. 30, 2014
Secondary Offering [Member]
Apr. 30, 2014
Secondary Offering [Member]
Apr. 9, 2014
Secondary Offering [Member]
Dec. 31, 2013
Secondary Offering [Member]
Dec. 17, 2013
Secondary Offering [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, shares issued
 
 
89,981,272 
 
89,900,453 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unvested shares of common stock
 
 
3,266,721 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock split description
 
 
On April 7, 2013, the Board authorized an eight-for-one split of the Company's common stock which was effective on April 8, 2013. The Company's historical share and per share information has been retroactively adjusted to give effect to this stock split. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock split conversion ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, par value
 
 
$ 0.01 
 
$ 0.01 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, shares authorized
 
 
1,000,000,000 
 
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock, shares authorized
 
 
100,000,000 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock, par value
 
 
$ 0.01 
 
$ 0.01 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares of common stock issued through initial public offering, shares
 
 
 
 
 
 
 
 
 
 
 
 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Shares offered and sold by the selling stockholders
 
 
 
 
 
 
 
 
 
 
 
 
19,900,000 
 
 
 
2,250,000 
3,900,000 
17,250,000 
18,000,000 
 
 
 
 
 
Net proceeds received from offering
 
 
 
 
 
 
 
 
 
 
 
 
$ 245,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds received used to redeem 11% Senior Notes
 
 
 
 
 
 
 
 
140,000,000 
 
 
 
 
 
 
140,000,000 
 
 
 
 
 
 
 
 
 
Redemption price for Senior Notes percentage
 
 
 
 
 
 
 
 
 
111.00% 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes redemption terms
 
 
 
 
 
 
 
 
 
 
 
 
 
A provision in the indenture governing the Senior Notes that permits the Company to redeem up to 35% of the aggregate principal amount of the Senior Notes with the net cash proceeds of certain equity offerings. 
 
 
 
 
 
 
 
 
 
 
 
Payment made to affiliate for termination of Advisory Agreement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
46,300,000 
 
 
 
 
 
 
 
 
 
 
Net proceeds from offering to repay the outstanding debt
 
 
 
 
 
 
 
 
 
 
 
37,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Secondary offering costs
 
 
747,000 
 
1,407,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares repurchased
 
 
3,250,000 
 
1,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,750,000 
 
1,500,000 
 
Treasury stock at cost
 
 
94,871,000 
 
44,163,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
94,871,000 
 
 
44,163,000 
 
Dividends paid to common stockholders
 
 
53,639,000 
18,124,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends payable
 
 
18,647,000 
 
17,939,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends paid
18,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends payable
 
 
 
 
 
 
1,770,000 
1,770,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share repurchase program, authorized amount
 
 
 
 
 
$ 250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share repurchase program, beginning date
 
 
Jan. 01, 2015 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity - Schedule of Quarterly Cash Dividends to Common Stockholders (Detail)
3 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Q4 2013 Declaration [Member]
Sep. 30, 2014
Q4 2013 Declaration [Member]
Mar. 31, 2014
Q1 2014 Declaration [Member]
Sep. 30, 2014
Q1 2014 Declaration [Member]
May 31, 2014
Q2 2014 Declaration [Member]
Sep. 30, 2014
Q2 2014 Declaration [Member]
Sep. 30, 2014
Q3 2014 Declaration [Member]
Sep. 30, 2014
Q3 2014 Declaration [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Dividend record date
 
 
 
 
 
Dec. 20, 2013 
 
Mar. 20, 2014 
 
Jun. 20, 2014 
 
Sep. 29, 2014 
Dividend payable date
 
 
 
 
 
Jan. 03, 2014 
 
Apr. 01, 2014 
 
Jul. 01, 2014 
 
Oct. 06, 2014 
Cash dividends declared
$ 0.21 
$ 0.20 
$ 0.62 
$ 0.40 
$ 0.20 
 
$ 0.20 
 
$ 0.21 
 
$ 0.21