Item 7. — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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Item 7. — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with, and is qualified in its entirety by, the audited consolidated financial statements, and the notes thereto and other financial information included in this Form 10-K. Certain statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are forward-looking statements. See “— Special Note Regarding Forward-Looking Statements.”

Operations

Generally, we view each of our integrated resort properties as an operating segment. Our Macao operating segments consist of The Venetian Macao, Sands Cotai Central, The Parisian Macao, which opened in September 2016, Four Seasons Macao and Sands Macao. Our Singapore operating segment consists of the Marina Bay Sands. Our operating segments in the U.S. consist of the Las Vegas Operating Properties and Sands Bethlehem.

For the years ended December 31, 2016 and 2015, gross revenue at our reportable segments was derived as follows:

•At The Venetian Macao, approximately 81.9% and 80.8%, respectively, was from gaming activities, with the remainder from room, mall, food and beverage and other non-gaming sources.
•At Sands Cotai Central, approximately 78.4% and 80.3%, respectively, was from gaming activities, with the remainder primarily from room and food and beverage operations.
•At The Parisian Macao, approximately 80.6% of gross revenues for the 110-day period ended December 31, 2016, was derived from gaming activities, with the remainder primarily from room and food and beverage operations.
•At Four Seasons Macao, approximately 69.8% and 72.6%, respectively, was from gaming activities, with the remainder primarily from mall and room operations.
•At Sands Macao, approximately 92.4% and 92.8%, respectively, was from gaming activities, with the remainder primarily from food and beverage operations.
•At Marina Bay Sands, approximately 72% and 73.9%, respectively, was from gaming activities, with the remainder from room, food and beverage, mall and other non-gaming sources.
•At our Las Vegas Operating Properties, approximately 73.3% and 71.6%, respectively, was from room, food and beverage and other non-gaming sources, with the remainder from gaming activities. The percentage of non-gaming revenue reflects the integrated resort’s emphasis on the group convention and trade show business and the resulting high occupancy and room rates throughout the week, including during mid-week periods.
•At Sands Bethlehem, approximately 88.4% and 88.3%, respectively, was from gaming activities, with the remainder primarily from food and beverage and other non-gaming sources.

Summary Financial Results

The following table summarizes our results of operations:

Year Ended December 31,
2016Percent Change2015Percent Change2014
(Dollars in millions)
Net revenues$11,410(2.4)%$11,688(19.9)%$14,584
Operating expenses8,9170.8%8,847(15.6)%10,485
Operating income2,493(12.2)%2,841(30.7)%4,099
Income before income taxes2,255(14.0)%2,622(31.6)%3,833
Net income2,016(15.5)%2,386(33.5)%3,588
Net income attributable to Las Vegas Sands Corp.1,670(15.1)%1,966(30.8)%2,841
Percent of Net Revenues Year Ended December 31,
201620152014
Operating expenses78.2%75.7%71.9%
Operating income21.8%24.3%28.1%
Income before income taxes19.8%22.4%26.3%
Net income17.7%20.4%24.6%
Net income attributable to Las Vegas Sands Corp.14.6%16.8%19.5%

Our historical financial results will not be indicative of our future results as The Parisian Macao, which opened in September 2016, ramps up its operations and as we complete our remaining development projects, including the remainder of Sands Cotai Central.

Key Operating Revenue Measurements

Operating revenues at The Venetian Macao, Sands Cotai Central, The Parisian Macao, Four Seasons Macao, Marina Bay Sands and our Las Vegas Operating Properties are dependent upon the volume of customers who stay at the hotel, which affects the price that can be charged for hotel rooms and our gaming volume. Operating revenues at Sands Macao and Sands Bethlehem are principally driven by casino customers who visit the properties on a daily basis.

The following are the key measurements we use to evaluate operating revenues:

Casino revenue measurements for Macao and Singapore: Macao and Singapore table games are segregated into two groups, consistent with the Macao and Singapore markets’ convention: Rolling Chip play (all VIP players) and Non-Rolling Chip play (mostly non-VIP players). The volume measurement for Rolling Chip play is non-negotiable gaming chips wagered and lost. The volume measurement for Non-Rolling Chip play is table games drop (“drop”), which is net markers issued (credit instruments), cash deposited in the table drop boxes and gaming chips purchased at the cage. Rolling Chip and Non-Rolling Chip volume measurements are not comparable as the amounts wagered and lost for Rolling Chip play are substantially higher than the amounts dropped for Non-Rolling Chip play. Slot handle (“handle”), also a volume measurement, is the gross amount wagered for the period cited.

We view Rolling Chip win as a percentage of Rolling Chip volume, Non-Rolling Chip win as a percentage of drop and slot hold (amount won by the casino) as a percentage of slot handle. Win or hold percentage represents the percentage of Rolling Chip volume, Non-Rolling Chip drop or slot handle that is won by the casino and recorded as casino revenue. Based upon our mix of table games, our Rolling Chip win percentage (calculated before discounts and commissions) is expected to be 2.7% to 3.0%. Generally, slot machine play is conducted on a cash basis. In Macao and Singapore, 16.4% and 28.6%, respectively, of our table games play was conducted on a credit basis for the year ended December 31, 2016.

Casino revenue measurements for the U.S.: The volume measurements in the U.S. are slot handle, as previously described, and table games drop, which is the total amount of cash and net markers issued that are deposited in the table drop boxes. We view table games win as a percentage of drop and slot hold as a percentage of handle. Based upon

our mix of table games, our table games are expected to produce a win percentage (calculated before discounts) of 21% to 29% for Baccarat and 16% to 20% for non-Baccarat. As in Macao and Singapore, slot machine play is generally conducted on a cash basis. Approximately 59.6% of our table games play at our Las Vegas Operating Properties, for the year ended December 31, 2016, was conducted on a credit basis, while our table games play in Pennsylvania is primarily conducted on a cash basis.

Hotel revenue measurements: Performance indicators used are occupancy rate, which is the average percentage of available hotel rooms occupied during a period, and average daily room rate, which is the average price of occupied rooms per day. The calculations of the occupancy and average daily room rates include the impact of rooms provided on a complimentary basis. Complimentary room rates are determined based on an analysis of retail (or cash) room rates by type of customer and room product to ensure the complimentary room rates are consistent with retail rates. Revenue per available room represents a summary of hotel average daily room rates and occupancy. Because not all available rooms are occupied, average daily room rates are normally higher than revenue per available room. Reserved rooms where the guests do not show up for their stay and lose their deposit, or where guests check out early, may be re-sold to walk-in guests. These rooms are considered to be occupied twice for statistical purposes due to obtaining the original deposit and the walk-in guest revenue. In cases where a significant number of rooms are resold, occupancy rates may be in excess of 100% and revenue per available room may be higher than the average daily room rate.

Mall revenue measurements: Occupancy, base rent per square foot and tenant sales per square foot are used as performance indicators. Occupancy represents gross leasable occupied area (“GLOA”) divided by gross leasable area (“GLA”) at the end of the reporting period. GLOA is the sum of: (1) tenant occupied space under lease and (2) tenants no longer occupying space, but paying rent. GLA does not include space that is currently under development or not on the market for lease. Base rent per square foot is the weighted average base, or minimum, rent charge in effect at the end of the reporting period for all tenants that would qualify to be included in occupancy. Tenant sales per square foot is the sum of reported comparable sales for the trailing 12 months divided by the comparable square footage for the same period. Only tenants that have been open for a minimum of 12 months are included in the tenant sales per square foot calculation.

Year Ended December 31, 2016 Compared to the Year Ended December 31, 2015

Operating Revenues

Our net revenues consisted of the following:

Year Ended December 31,
20162015Percent Change
(Dollars in millions)
Casino$8,771$9,083(3.4)%
Rooms1,5271,4703.9%
Food and beverage7747572.2%
Mall5915644.8%
Convention, retail and other533540(1.3)%
12,19612,414(1.8)%
Less — promotional allowances(786)(726)(8.3)%
Total net revenues$11,410$11,688(2.4)%

Consolidated net revenues were $11.41 billion for the year ended December 31, 2016, a decrease of $278 million compared to $11.69 billion for the year ended December 31, 2015. The decrease in net revenues was driven by decreases of $168 million at our Macao operations and $153 million at Marina Bay Sands, primarily due to decreased casino revenues, partially offset by a $29 million increase at our Las Vegas Operating Properties, driven by increased room revenues.

Casino revenues decreased $312 million compared to the year ended December 31, 2015. The decrease is primarily due to decreases of $522 million at our Macao properties (excluding The Parisian Macao), driven by a decrease in Rolling Chip volume as demand has decreased in the VIP market, and $152 million at Marina Bay Sands, driven by a decrease in Rolling Chip volume and win percentage, as well as a decrease in Non-Rolling Chip drop. These decreases were partially offset by $359 million in revenues attributable to The Parisian Macao. The following table summarizes the results of our casino activity:

Year Ended December 31,
20162015Change
(Dollars in millions)
Macao Operations:
The Venetian Macao
Total casino revenues$2,495$2,533(1.5)%
Non-Rolling Chip drop$6,856$7,030(2.5)%
Non-Rolling Chip win percentage25.2%24.5%0.7 pts
Rolling Chip volume$28,851$31,025(7.0)%
Rolling Chip win percentage3.23%3.08%0.15 pts
Slot handle$3,790$4,093(7.4)%
Slot hold percentage4.5%4.8%(0.3) pts
Sands Cotai Central
Total casino revenues$1,672$1,878(11.0)%
Non-Rolling Chip drop$5,992$6,026(0.6)%
Non-Rolling Chip win percentage20.2%21.5%(1.3) pts
Rolling Chip volume$12,329$19,679(37.3)%
Rolling Chip win percentage3.41%3.08%0.33 pts
Slot handle$5,794$6,128(5.5)%
Slot hold percentage3.6%3.5%0.1 pts
The Parisian Macao
Total casino revenues$359$——
Non-Rolling Chip drop$1,085$——
Non-Rolling Chip win percentage18.5%—%—
Rolling Chip volume$4,061$——
Rolling Chip win percentage4.24%—%—
Slot handle$974$——
Slot hold percentage4.5%—%—
Four Seasons Macao
Total casino revenues$445$536(17.0)%
Non-Rolling Chip drop$1,114$1,0585.3%
Non-Rolling Chip win percentage21.9%22.6%(0.7) pts
Rolling Chip volume$9,004$13,390(32.8)%
Rolling Chip win percentage3.09%3.23%(0.14) pts
Slot handle$414$476(13.0)%
Slot hold percentage6.2%6.1%0.1 pts
Sands Macao
Total casino revenues$667$854(21.9)%
Non-Rolling Chip drop$2,628$3,035(13.4)%
Non-Rolling Chip win percentage18.6%18.4%0.2 pts
Rolling Chip volume$7,014$9,608(27.0)%
Rolling Chip win percentage2.48%3.36%(0.88) pts
Slot handle$2,583$2,737(5.6)%
Slot hold percentage3.4%3.5%(0.1) pts
Year Ended December 31,
20162015Change
(Dollars in millions)
Singapore Operations:
Marina Bay Sands
Total casino revenues$2,164$2,315(6.5)%
Non-Rolling Chip drop$3,878$4,205(7.8)%
Non-Rolling Chip win percentage28.5%27.0%1.5 pts
Rolling Chip volume$31,887$41,149(22.5)%
Rolling Chip win percentage2.65%2.79%(0.14) pts
Slot handle$13,441$12,8794.4%
Slot hold percentage4.5%4.5%—
U.S. Operations:
Las Vegas Operating Properties
Total casino revenues$439$456(3.7)%
Table games drop$1,692$2,080(18.7)%
Table games win percentage17.3%15.9%1.4 pts
Slot handle$2,589$2,4097.5%
Slot hold percentage8.0%8.1%(0.1) pts
Sands Bethlehem
Total casino revenues$530$5113.7%
Table games drop$1,124$1,134(0.9)%
Table games win percentage19.3%17.9%1.4 pts
Slot handle$4,516$4,2745.7%
Slot hold percentage6.8%7.0%(0.2) pts

In our experience, average win percentages remain steady when measured over extended periods of time, but can vary considerably within shorter time periods as a result of the statistical variances that are associated with games of chance in which large amounts are wagered.

Room revenues increased $57 million compared to the year ended December 31, 2015. The increase is primarily due to increases of $43 million at our Las Vegas Operating Properties and $17 million at Marina Bay Sands, driven by increased occupancy and average daily room rates. Our Macao properties decreased $3 million, due to a $39 million decrease at our properties (excluding The Parisian Macao) driven by the slowdown in the overall Macao gaming industry, partially offset by $36 million in revenues attributable to The Parisian Macao. The suites at Sands Macao are primarily provided to casino patrons on a complimentary basis. The following table summarizes the results of our room activity:

Year Ended December 31,
20162015Change
(Room revenues in millions)
Macao Operations:
The Venetian Macao
Total room revenues$182$214(15.0)%
Occupancy rate86.0%84.0%2.0 pts
Average daily room rate$214$243(11.9)%
Revenue per available room$184$204(9.8)%
Sands Cotai Central
Total room revenues$274$2730.4%
Occupancy rate82.2%83.1%(0.9) pts
Average daily room rate$148$157(5.7)%
Revenue per available room$122$131(6.9)%
The Parisian Macao
Total room revenues$36$——
Occupancy rate90.5%—%—
Average daily room rate$138$——
Revenue per available room$125$——
Four Seasons Macao
Total room revenues$37$42(11.9)%
Occupancy rate75.3%82.0%(6.7) pts
Average daily room rate$364$376(3.2)%
Revenue per available room$274$308(11.0)%
Sands Macao
Total room revenues$20$23(13.0)%
Occupancy rate97.1%99.3%(2.2) pts
Average daily room rate$199$220(9.5)%
Revenue per available room$193$218(11.5)%
Singapore Operations:
Marina Bay Sands
Total room revenues$376$3594.7%
Occupancy rate97.3%96.3%1.0 pts
Average daily room rate$417$4043.2%
Revenue per available room$406$3894.4%
U.S. Operations:
Las Vegas Operating Properties
Total room revenues$587$5447.9%
Occupancy rate93.5%91.8%1.7 pts
Average daily room rate$246$2335.6%
Revenue per available room$230$2147.5%
Sands Bethlehem
Total room revenues$15$15—
Occupancy rate94.5%91.5%3.0 pts
Average daily room rate$160$1516.0%
Revenue per available room$151$1389.4%

Food and beverage revenues increased $17 million compared to the year ended December 31, 2015. The increase was primarily attributable to $20 million of revenues at The Parisian Macao, which opened in September 2016.

Mall revenues increased $27 million compared to the year ended December 31, 2015. The increase was primarily attributable to $23 million in revenues from the Shoppes at Parisian. For further information related to the financial performance of our malls, see"— Additional Information Regarding our Retail Mall Operations." The following table summarizes the results of our mall activity:

Year Ended December 31,
20162015Change
(Mall revenues in millions)
Macao Operations:
Shoppes at Venetian
Total mall revenues$209$2052.0%
Mall gross leasable area (in square feet)777,413780,165(0.4)%
Occupancy97.6%97.8%(0.2) pts
Base rent per square foot$241$2238.1%
Tenant sales per square foot$1,326$1,469(9.7)%
Shoppes at Cotai Central(1)
Total mall revenues$62$62—
Mall gross leasable area (in square feet)407,065331,49922.8%
Occupancy96.7%97.9%(1.2) pts
Base rent per square foot$128$153(16.3)%
Tenant sales per square foot$882$896(1.6)%
Shoppes at Parisian(2)
Total mall revenues$23$——
Mall gross leasable area (in square feet)299,778——
Occupancy92.6%——
Base rent per square foot$222$——
Shoppes at Four Seasons
Total mall revenues$127$130(2.3)%
Mall gross leasable area (in square feet)259,410259,394—
Occupancy99.3%99.0%0.3 pts
Base rent per square foot$452$454(0.4)%
Tenant sales per square foot$3,004$3,423(12.2)%
Singapore Operations:
The Shoppes at Marina Bay Sands
Total mall revenues$166$1631.8%
Mall gross leasable area (in square feet)612,567644,719(5.0)%
Occupancy98.3%95.2%3.1 pts
Base rent per square foot$223$2144.2%
Tenant sales per square foot$1,383$1,3611.6%
U.S. Operations:
The Outlets at Sands Bethlehem
Total mall revenues$4$4—
Mall gross leasable area (in square feet)150,972151,029—
Occupancy92.3%95.1%(2.8) pts
Base rent per square foot$21$21—
Tenant sales per square foot$350$354(1.1)%
(1)At completion, the Shoppes at Cotai Central will feature up to 600,000 square feet of gross leasable area.
(2)The Shoppes at Parisian opened in September 2016.

Operating Expenses

The breakdown of operating expenses is as follows:

Year Ended December 31,
20162015Percent Change
(Dollars in millions)
Casino$4,838$5,114(5.4)%
Rooms262262—%
Food and beverage4214034.5%
Mall64614.9%
Convention, retail and other252277(9.0)%
Provision for doubtful accounts17315610.9%
General and administrative1,2841,2671.3%
Corporate25617645.5%
Pre-opening13048170.8%
Development910(10.0)%
Depreciation and amortization1,11199911.2%
Amortization of leasehold interests in land3839(2.6)%
Loss on disposal or impairment of assets7935125.7%
Total operating expenses$8,917$8,8470.8%

Operating expenses were $8.92 billion for the year ended December 31, 2016, an increase of $70 million compared to $8.85 billion for the year ended December 31, 2015. The increase was primarily attributable to operating expenses of $299 million at The Parisian Macao, which opened in September 2016, a $112 million increase in depreciation and amortization, and an $82 million increase in pre-opening expenses related to the opening of The Parisian Macao. These increases were partially offset by a $419 million decrease in casino expenses at our Macao operations (excluding The Parisian Macao).

Casino expenses decreased $276 million compared to the year ended December 31, 2015. Of the decrease, $114 million was due to the 39% gross win tax on decreased casino revenues at our Macao properties. The remaining decrease is primarily due to decreases in junket commissions and our cost control and cost avoidance initiatives at our Macao properties (excluding The Parisian Macao), including the transition of personnel to pre-opening in advance of and in connection with the opening of The Parisian Macao, and decreases in casino expenses at our Las Vegas Operating Properties and Marina Bay Sands. These decreases were partially offset by casino expenses attributable to The Parisian Macao.

The provision for doubtful accounts was $173 million for the year ended December 31, 2016, compared to $156 million for the year ended December 31, 2015. The amount of this provision can vary over short periods of time because of factors specific to the customers who owe us money from gaming activities at any given time. We believe that the amount of our provision for doubtful accounts in the future will depend upon the state of the economy, our credit standards, our risk assessments and the judgment of our employees responsible for granting credit.

Corporate expenses increased $80 million compared to the year ended December 31, 2015. The increase was primarily due to nonrecurring legal costs.

Pre-opening expenses were $130 million for the year ended December 31, 2016, compared to $48 million for the year ended December 31, 2015. Pre-opening expense represents personnel and other costs incurred prior to the opening of new ventures, which are expensed as incurred. Pre-opening expenses for the year ended December 31, 2016, primarily related to activities at The Parisian Macao. Development expenses include the costs associated with the Company’s evaluation and pursuit of new business opportunities, which are also expensed as incurred.

Depreciation and amortization expense increased $112 million compared to the year ended December 31, 2015. The increase is primarily attributable to $57 million of expenses at The Parisian Macao and a $38 million increase at Marina Bay Sands, driven by the acceleration of depreciation of certain assets due to room renovations.

Loss on disposal or impairment of assets was $79 million for the year ended December 31, 2016, compared to $35 million for the year ended December 31, 2015. The loss for the year ended December 31, 2016, consisted primarily of a $49 million write-off of assets related to our Las Vegas Condo Tower, as well as other asset dispositions at our Macao properties.

Consolidated Adjusted Property EBITDA

Consolidated adjusted property EBITDA, which is a non-GAAP financial measure, is used by management as the primary measure of the operating performance of our segments. Consolidated adjusted property EBITDA is net income before stock-based compensation expense, corporate expense, pre-opening expense, development expense, depreciation and amortization, amortization of leasehold interests in land, gain or loss on disposal or impairment of assets, interest, other income or expense, gain or loss on modification or early retirement of debt and income taxes. Consolidated adjusted property EBITDA is a supplemental non-GAAP financial measure used by management, as well as industry analysts, to evaluate operations and operating performance. In particular, management utilizes consolidated adjusted property EBITDA to compare the operating profitability of its operations with those of its competitors, as well as a basis for determining certain incentive compensation. Gaming companies have historically reported adjusted property EBITDA as a supplemental performance measure to GAAP financial measures. In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including Las Vegas Sands Corp., have historically excluded certain expenses that do not relate to the management of specific casino properties, such as pre-opening expense, development expense and corporate expense, from their adjusted property EBITDA calculations. Consolidated adjusted property EBITDA should not be interpreted as an alternative to income from operations (as an indicator of operating performance) or to cash flows from operations (as a measure of liquidity), in each case, as determined in accordance with GAAP. We have significant uses of cash flow, including capital expenditures, dividend payments, interest payments and debt principal repayments, which are not reflected in consolidated adjusted property EBITDA. Not all companies calculate adjusted property EBITDA in the same manner. As a result, our presentation of consolidated adjusted property EBITDA may not be directly comparable to similarly titled measures presented by other companies. The following table summarizes information related to our segments (see “Item 8 — Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements — Note 17 — Segment Information” for discussion of our operating segments and a reconciliation of consolidated adjusted property EBITDA to net income):

Year Ended December 31,
20162015Percent Change
(Dollars in millions)
Macao:
The Venetian Macao$1,089$1,0790.9%
Sands Cotai Central616651(5.4)%
The Parisian Macao114——%
Four Seasons Macao221243(9.1)%
Sands Macao172226(23.9)%
Ferry Operations and Other322339.1%
2,2442,2221.0%
Marina Bay Sands1,3891,507(7.8)%
United States:
Las Vegas Operating Properties35630516.7%
Sands Bethlehem1411363.7%
49744112.7%
Consolidated adjusted property EBITDA$4,130$4,170(1.0)%

Adjusted property EBITDA at our Macao operations increased $22 million compared to the year ended December 31, 2015. The increase was primarily attributable to $114 million in adjusted property EBITDA generated at The Parisian Macao, and cost control and cost avoidance initiatives at our other Macao properties. This increase was partially offset by decreases at Sands Macao, Sands Cotai Central and Four Seasons Macao, driven by decreased casino revenues due to lower demand in the VIP market.

Adjusted property EBITDA at Marina Bay Sands decreased $118 million compared to the year ended December 31, 2015. As previously described, the decrease was primarily due to the decrease in casino operations, driven by decreases in Rolling Chip volume and win percentage, as well as a decrease in Non-rolling chip drop.

Adjusted property EBITDA at our Las Vegas Operating Properties increased $51 million compared to the year ended December 31, 2015. The increase was primarily due to increased room revenues, partially offset by a decrease in casino operations.

Adjusted property EBITDA at Sands Bethlehem increased $5 million compared to the year ended December 31, 2015. The increase was primarily due to a $22 million increase in net revenues, driven by an increase in casino revenues, partially offset by an increase in the associated expenses.

Interest Expense

The following table summarizes information related to interest expense:

Year Ended December 31,
20162015
(Dollars in millions)
Interest cost (which includes the amortization of deferred financing costs and original issue discounts)$293$278
Add — imputed interest on deferred proceeds from sale of The Shoppes at The Palazzo1515
Less — capitalized interest(34)(28)
Interest expense, net$274$265
Cash paid for interest$248$239
Weighted average total debt balance$9,746$9,429
Weighted average interest rate3.0%2.9%

Interest cost increased $15 million compared to the year ended December 31, 2015, resulting primarily from an increase in our weighted average total debt balance. Capitalized interest increased $6 million compared to the year ended December 31, 2015, primarily due to the construction of The Parisian Macao.

Other Factors Effecting Earnings

Other income was $31 million for the years ended December 31, 2016 and 2015. Other income during the year ended December 31, 2016, was primarily attributable to $20 million of foreign currency transaction gains, driven by Singapore dollar denominated intercompany debt held in the U.S., and a $10 million fair value adjustment on our Singapore forward contracts. These gains resulted from the appreciation of the U.S. dollar versus the Singapore dollar.

The loss on modification or early retirement of debt was $5 million for the year ended December 31, 2016, and primarily related to amendments to the 2013 U.S. Credit Facility (see “Item 8 — Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements — Note 8 — Long-term Debt — 2013 U.S. Credit Facility”).

Our effective income tax rate was 10.6% for the year ended December 31, 2016, compared to 9.0% for the year ended December 31, 2015. The increase in the effective income tax rate relates primarily to the valuation allowances recorded during the year ended December 31, 2016, as we determined that certain deferred tax assets were no longer “more-likely-than-not” realizable. The effective income tax rates reflect a 17% statutory tax rate on our Singapore operations and a zero percent tax rate on our Macao gaming operations due to our income tax exemption in Macao, which expires at the end of 2018. We have recorded a valuation allowance related to certain deferred tax assets generated by operations in the U.S. and certain foreign jurisdictions; however, to the extent that the financial results of these operations improve and it becomes “more-likely-than-not” that these deferred tax assets or a portion thereof are realizable, we will reduce the valuation allowances in the period such determination is made as appropriate.

The net income attributable to our noncontrolling interests was $346 million for the year ended December 31, 2016, compared to $420 million for the year ended December 31, 2015. These amounts are primarily related to the noncontrolling interest of SCL.

Year Ended December 31, 2015 Compared to the Year Ended December 31, 2014

Operating Revenues

Our net revenues consisted of the following:

Year Ended December 31,
20152014Percent Change
(Dollars in millions)
Casino$9,083$12,004(24.3)%
Rooms1,4701,540(4.5)%
Food and beverage757779(2.8)%
Mall5645541.8%
Convention, retail and other540549(1.6)%
12,41415,426(19.5)%
Less — promotional allowances(726)(842)13.8%
Total net revenues$11,688$14,584(19.9)%

Consolidated net revenues were $11.69 billion for the year ended December 31, 2015, a decrease of $2.90 billion compared to $14.58 billion for the year ended December 31, 2014. The decrease in net revenues was driven by decreases of $2.71 billion at our Macao operations and $262 million at Marina Bay Sands, primarily due to decreased casino revenues.

Casino revenues decreased $2.92 billion compared to the year ended December 31, 2014. The decrease is primarily attributable to a decrease of $2.65 billion at our Macao properties, driven by a decrease in Rolling Chip volume as demand has decreased in the VIP market, and a $260 million decrease at Marina Bay Sands, driven by a decrease in Rolling Chip win percentage. The following table summarizes the results of our casino activity:

Year Ended December 31,
20152014Change
(Dollars in millions)
Macao Operations:
The Venetian Macao
Total casino revenues$2,533$3,554(28.7)%
Non-Rolling Chip drop$7,030$8,961(21.5)%
Non-Rolling Chip win percentage24.5%25.2%(0.7) pts
Rolling Chip volume$31,025$47,871(35.2)%
Rolling Chip win percentage3.08%3.22%(0.14) pts
Slot handle$4,093$5,565(26.5)%
Slot hold percentage4.8%4.8%—
Sands Cotai Central
Total casino revenues$1,878$2,801(33.0)%
Non-Rolling Chip drop$6,026$7,433(18.9)%
Non-Rolling Chip win percentage21.5%21.8%(0.3) pts
Rolling Chip volume$19,679$46,861(58.0)%
Rolling Chip win percentage3.08%3.08%—
Slot handle$6,128$7,630(19.7)%
Slot hold percentage3.5%3.5%—
Four Seasons Macao
Total casino revenues$536$948(43.5)%
Non-Rolling Chip drop$1,058$1,336(20.8)%
Non-Rolling Chip win percentage22.6%24.0%(1.4) pts
Rolling Chip volume$13,390$27,073(50.5)%
Rolling Chip win percentage3.23%3.36%(0.13) pts
Slot handle$476$830(42.7)%
Slot hold percentage6.1%5.1%1.0 pts
Sands Macao
Total casino revenues$854$1,149(25.7)%
Non-Rolling Chip drop$3,035$3,938(22.9)%
Non-Rolling Chip win percentage18.4%18.1%0.3 pts
Rolling Chip volume$9,608$17,663(45.6)%
Rolling Chip win percentage3.36%2.98%0.38 pts
Slot handle$2,737$3,236(15.4)%
Slot hold percentage3.5%3.7%(0.2) pts
Singapore Operations:
Marina Bay Sands
Total casino revenues$2,315$2,575(10.1)%
Non-Rolling Chip drop$4,205$4,499(6.5)%
Non-Rolling Chip win percentage27.0%25.1%1.9 pts
Rolling Chip volume$41,149$42,558(3.3)%
Rolling Chip win percentage2.79%3.30%(0.51) pts
Slot handle$12,879$12,3684.1%
Slot hold percentage4.5%4.9%(0.4) pts
U.S. Operations:
Las Vegas Operating Properties
Total casino revenues$456$509(10.4)%
Table games drop$2,080$2,140(2.8)%
Table games win percentage15.9%19.9%(4.0) pts
Slot handle$2,409$2,11513.9%
Slot hold percentage8.1%8.2%(0.1) pts
Sands Bethlehem
Total casino revenues$511$4689.2%
Table games drop$1,134$1,0636.7%
Table games win percentage17.9%16.8%1.1 pts
Slot handle$4,274$4,0166.4%
Slot hold percentage7.0%7.0%—

In our experience, average win percentages remain steady when measured over extended periods of time, but can vary considerably within shorter time periods as a result of the statistical variances that are associated with games of chance in which large amounts are wagered.

Room revenues decreased $70 million compared to the year ended December 31, 2014. The decrease is primarily due to decreases of $100 million at our Macao properties and $25 million at Marina Bay Sands, driven by decreased occupancy and average daily room rates, partially offset by a $53 million increase at our Las Vegas Operating Properties, driven by increased occupancy and average daily room rates. The suites at Sands Macao are primarily provided to casino patrons on a complimentary basis. The following table summarizes the results of our room activity:

Year Ended December 31,
20152014Change
(Room revenues in millions)
Macao Operations:
The Venetian Macao
Total room revenues$214$259(17.4)%
Occupancy rate84.0%91.3%(7.3) pts
Average daily room rate$243$270(10.0)%
Revenue per available room$204$246(17.1)%
Sands Cotai Central
Total room revenues$273$321(15.0)%
Occupancy rate83.1%88.5%(5.4) pts
Average daily room rate$157$176(10.8)%
Revenue per available room$131$156(16.0)%
Four Seasons Macao
Total room revenues$42$48(12.5)%
Occupancy rate82.0%87.0%(5.0) pts
Average daily room rate$376$400(6.0)%
Revenue per available room$308$348(11.5)%
Sands Macao
Total room revenues$23$24(4.2)%
Occupancy rate99.3%98.6%0.7 pts
Average daily room rate$220$238(7.6)%
Revenue per available room$218$235(7.2)%
Singapore Operations:
Marina Bay Sands
Total room revenues$359$384(6.5)%
Occupancy rate96.3%99.0%(2.7) pts
Average daily room rate$404$431(6.3)%
Revenue per available room$389$427(8.9)%
U.S. Operations:
Las Vegas Operating Properties
Total room revenues$544$49110.8%
Occupancy rate91.8%88.0%3.8 pts
Average daily room rate$233$2225.0%
Revenue per available room$214$1969.2%
Sands Bethlehem
Total room revenues$15$1315.4%
Occupancy rate91.5%83.4%8.1 pts
Average daily room rate$151$1463.4%
Revenue per available room$138$12213.1%

Food and beverage revenues decreased $22 million compared to the year ended December 31, 2014. The decrease was primarily due to a $54 million decrease at our Macao properties, driven by a decrease in property visitation, partially offset by a $30 million increase at our Las Vegas Operating Properties, driven by an increase in banquet operations.

Mall revenues increased $10 million compared to the year ended December 31, 2014. The increase was primarily due to a $16 million increase at our Macao properties, driven by an increase in base rents. For further information related to the financial performance of our malls, see"— Additional Information Regarding our Retail Mall Operations." The following table summarizes the results of our mall activity:

Year Ended December 31,
20152014Change
(Mall revenues in millions)
Macao Operations:
Shoppes at Venetian
Total mall revenues$205$1926.8%
Mall gross leasable area (in square feet)780,165771,3451.1%
Occupancy97.8%93.4%4.4 pts
Base rent per square foot$223$2125.2%
Tenant sales per square foot$1,469$1,673(12.2)%
Shoppes at Cotai Central(1)
Total mall revenues$62$578.8%
Mall gross leasable area (in square feet)331,499330,2580.4%
Occupancy97.9%97.9%—
Base rent per square foot$153$13612.5%
Tenant sales per square foot$896$1,450(38.2)%
Shoppes at Four Seasons
Total mall revenues$130$132(1.5)%
Mall gross leasable area (in square feet)259,394257,9630.6%
Occupancy99.0%99.2%(0.2) pts
Base rent per square foot$454$4188.6%
Tenant sales per square foot$3,423$5,689(39.8)%
Singapore Operations:
The Shoppes at Marina Bay Sands
Total mall revenues$163$169(3.6)%
Mall gross leasable area (in square feet)644,719648,778(0.6)%
Occupancy95.2%96.1%(0.9) pts
Base rent per square foot$214$220(2.7)%
Tenant sales per square foot$1,361$1,426(4.6)%
U.S. Operations:
The Outlets at Sands Bethlehem
Total mall revenues$4$4—
Mall gross leasable area (in square feet)151,029151,029—
Occupancy95.1%97.0%(1.9) pts
Base rent per square foot$21$205.0%
Tenant sales per square foot$354$365(3.0)%
(1)The third phase of the Shoppes at Cotai Central opened in June 2014. At completion, the Shoppes at Cotai Central will feature up to 600,000 square feet of gross leasable area.

Operating Expenses

The breakdown of operating expenses is as follows:

Year Ended December 31,
20152014Percent Change
(Dollars in millions)
Casino$5,114$6,705(23.7)%
Rooms2622571.9%
Food and beverage4033932.5%
Mall6170(12.9)%
Convention, retail and other277321(13.7)%
Provision for doubtful accounts156187(16.6)%
General and administrative1,2671,2580.7%
Corporate1761750.6%
Pre-opening482684.6%
Development1014(28.6)%
Depreciation and amortization9991,031(3.1)%
Amortization of leasehold interests in land3941(4.9)%
Loss on disposal of assets357400.0%
Total operating expenses$8,847$10,485(15.6)%

Operating expenses were $8.85 billion for the year ended December 31, 2015, a decrease of $1.64 billion compared to $10.48 billion for the year ended December 31, 2014. The decrease in operating expenses was primarily due to a decrease in casino expenses at our Macao properties.

Casino expenses decreased $1.59 billion compared to the year ended December 31, 2014. Of the decrease, $1.31 billion was due to the 39% gross win tax on decreased casino revenues at our Macao properties. The remaining decrease is primarily attributable to decreases in junket commissions, as well as the implementation of certain cost control measures at our Macao properties.

Convention, retail and other expenses decreased $44 million compared to the year ended December 31, 2014. The decrease was primarily due to decreases of $23 million and $13 million at our Macao properties and our Las Vegas Operating Properties, respectively, driven by a decrease in entertainment expenses, and a $9 million decrease in our passenger ferry service operations in Macao.

The provision for doubtful accounts was $156 million for the year ended December 31, 2015, compared to $187 million for the year ended December 31, 2014. The decrease was driven by the overall decrease in casino receivables at our Macao properties due to decreases in VIP play and junket activity. The amount of this provision can vary over short periods of time because of factors specific to the customers who owe us money from gaming activities at any given time. We believe that the amount of our provision for doubtful accounts in the future will depend upon the state of the economy, our credit standards, our risk assessments and the judgment of our employees responsible for granting credit.

Pre-opening expenses were $48 million for the year ended December 31, 2015, compared to $26 million for the year ended December 31, 2014. Pre-opening expense represents personnel and other costs incurred prior to the opening of new ventures, which are expensed as incurred. Pre-opening expenses for the years ended December 31, 2015 and 2014, were primarily related to activities at The Parisian Macao and Sands Cotai Central, respectively. Development expenses include the costs associated with the Company’s evaluation and pursuit of new business opportunities, which are also expensed as incurred.

Loss on disposal of assets was $35 million for the year ended December 31, 2015, compared to $7 million for the year ended December 31, 2014. The loss for the year ended December 31, 2015, primarily related to dispositions at our Macao properties.

Consolidated Adjusted Property EBITDA

The following table summarizes information related to our segments:

Year Ended December 31,
20152014Percent Change
(Dollars in millions)
Macao:
The Venetian Macao$1,079$1,546(30.2)%
Sands Cotai Central6521,001(34.9)%
Four Seasons Macao243375(35.2)%
Sands Macao226339(33.3)%
Ferry Operations and Other234475.0%
2,2233,265(31.9)%
Marina Bay Sands1,5061,723(12.6)%
United States:
Las Vegas Operating Properties305314(2.9)%
Sands Bethlehem13612013.3%
4414341.6%
Consolidated adjusted property EBITDA$4,170$5,422(23.1)%

Adjusted property EBITDA at our Macao operations decreased $1.04 billion compared to the year ended December 31, 2014. As previously described, the decrease was primarily due to the decrease in casino operations, driven by decreased demand in the VIP market.

Adjusted property EBITDA at Marina Bay Sands decreased $217 million compared to the year ended December 31, 2014. As previously described, the decrease was primarily due to the decrease in casino operations, as well as a $90 million tax refund received in December 2014 related to the settlement of taxes assessed and paid for the years 2010 through 2014.

Adjusted property EBITDA at our Las Vegas Operating Properties decreased $9 million compared to the year ended December 31, 2014. The decrease was primarily due to the decrease in casino operations, partially offset by increases in our non-gaming operations, primarily rooms and food and beverage.

Adjusted property EBITDA at Sands Bethlehem increased $16 million compared to the year ended December 31, 2014. The increase was primarily due to a $45 million increase in net revenues, driven by an increase in casino revenues, partially offset by an increase in the associated operating expenses.

Interest Expense

The following table summarizes information related to interest expense:

Year Ended December 31,
20152014
(Dollars in millions)
Interest cost (which includes the amortization of deferred financing costs and original issue discounts)$278$268
Add — imputed interest on deferred proceeds from sale of The Shoppes at The Palazzo1515
Less — capitalized interest(28)(9)
Interest expense, net$265$274
Cash paid for interest$239$216
Weighted average total debt balance$9,429$9,992
Weighted average interest rate2.9%2.7%

Interest cost increased $10 million compared to the year ended December 31, 2014, resulting from a slight increase in our weighted average interest rate, partially offset by a decrease in our weighted average debt balance. Capitalized interest increased $19 million compared to the year ended December 31, 2014, primarily related to the construction of The Parisian Macao.

Other Factors Effecting Earnings

Other income was $31 million for the year ended December 31, 2015, compared to $2 million for the year ended December 31, 2014. The amounts in both periods were primarily due to foreign exchange gains.

The loss on modification or early retirement of debt was $20 million for the year ended December 31, 2014, and was primarily due to an $18 million loss related to the amendment of our 2011 VML Credit Facility in March 2014 (see “Item 8 — Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements — Note 8 — Long-term Debt — 2011 VML Credit Facility”).

Our effective income tax rate was 9.0% for the year ended December 31, 2015, compared to 6.4% for the year ended December 31, 2014. The effective income tax rates reflect a 17% statutory tax rate on our Singapore operations and a zero percent tax rate on profits generated by our Macao gaming operations due to our income tax exemption in Macao, which expires at the end of 2018. We have recorded a valuation allowance related to certain deferred tax assets generated by operations in the U.S. and certain foreign jurisdictions; however, to the extent that the financial results of these operations improve and it becomes “more-likely-than-not” that these deferred tax assets or a portion thereof are realizable, we will reduce the valuation allowances in the period such determination is made.

The net income attributable to our noncontrolling interests was $420 million for the year ended December 31, 2015, compared to $747 million for the year ended December 31, 2014. These amounts are primarily related to the noncontrolling interest of SCL.

Additional Information Regarding our Retail Mall Operations

The following tables summarize the results of our mall operations for the years ended December 31, 2016, 2015 and 2014 (in millions):

Shoppes at VenetianShoppes at Four SeasonsShoppes at Cotai CentralShoppes at Parisian(1)The Shoppes at Marina Bay SandsThe Outlets at Sands Bethlehem(2)Total
For the year ended December 31, 2016
Mall revenues:
Minimum rents(3)$167$114$44$17$123$2$467
Overage rents1034—16235
CAM, levies and direct recoveries321014627—89
Total mall revenues20912762231664591
Mall operating expenses:
Common area maintenance1556216145
Marketing and other direct operating expenses53226119
Mall operating expenses2088422264
Property taxes(4)————516
Provision for doubtful accounts3———2—5
Mall-related expenses(5)$23$8$8$4$29$3$75
For the year ended December 31, 2015
Mall revenues:
Minimum rents(3)$153$110$43$—$120$1$427
Overage rents22106—15356
CAM, levies and direct recoveries301013—28—81
Total mall revenues20513062—1634564
Mall operating expenses:
Common area maintenance1566—18146
Marketing and other direct operating expenses512—6115
Mall operating expenses2078—24261
Property taxes(4)————516
Mall-related expenses(5)$20$7$8$—$29$3$67
For the year ended December 31, 2014
Mall revenues:
Minimum rents(3)$131$87$32$—$122$2$374
Overage rents343714—172104
CAM, levies and direct recoveries27811—30—76
Total mall revenues19213257—1694554
Mall operating expenses:
Common area maintenance1866—25156
Marketing and other direct operating expenses622—3114
Mall operating expenses2488—28270
Property taxes(4)(1)———(2)1(2)
Provision for doubtful accounts————1—1
Mall-related expenses(5)$23$8$8$—$27$3$69
(1)The Shoppes at Parisian opened in September 2016.
(2)Revenues from CAM, levies and direct recoveries are included in minimum rents for The Outlets at Sands Bethlehem.
(3)Minimum rents include base rents and straight-line adjustments of base rents.
(4)Commercial property that generates rental income is exempt from property tax for the first six years for newly constructed buildings in Cotai. Each property is also eligible to obtain an additional six-year exemption, provided certain qualifications are met. To date, The Venetian Macao and the Four Seasons Macao have obtained the second exemption, extending the property tax exemption to August 2019 and August 2020, respectively. During the year ended December 31, 2014, the Company reversed $3 million of previously recognized property taxes for The Venetian Macao. Additionally, as previously described, Marina Bay Sands received a $90 million property tax refund in December 2014, of which $9 million related to the mall.
(5)Mall-related expenses consist of CAM, marketing fees and other direct operating expenses, property taxes and provision for doubtful accounts, but excludes depreciation and amortization and general and administrative costs.

It is common in the mall operating industry for companies to disclose mall net operating income (“NOI”) as a useful supplemental measure of a mall’s operating performance. Because NOI excludes general and administrative expenses, interest expense, impairment losses, depreciation and amortization, gains and losses from property dispositions, allocations to noncontrolling interests and provision for income taxes, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate properties and the impact on operations from trends in occupancy rates, rental rates and operating costs.

In the tables above, we believe that taking total mall revenues less mall-related expenses provides an operating performance measure for our malls. Other mall operating companies may use different methodologies for deriving mall-related expenses. As such, this calculation may not be comparable to the NOI of other mall operating companies.

Development Projects

As our integrated resorts mature, we will continue to reinvest in our portfolio of properties to maintain our high quality products and remain competitive in the markets in which we operate. We are constantly evaluating opportunities to improve our product offerings, such as refreshing our meeting and convention facilities, suites and rooms, retail malls, restaurant and nightlife mix and our gaming areas, as well as other revenue generating additions to our integrated resorts.

Macao

As of December 31, 2016, we have capitalized an aggregate of $12.44 billion in construction costs and land premiums for our Cotai Strip developments, which include The Venetian Macao, Sands Cotai Central, The Parisian Macao and Four Seasons Macao, as well as our investments in transportation infrastructure, including our passenger ferry service operations.

Four Seasons Macao

The Four Seasons Macao will also feature the Four Seasons Apartment Hotel Macao, Cotai Strip (the “Four Seasons Apartments”), an apart-hotel tower that consists of approximately 1.0 million square feet of Four Seasons-serviced and -branded luxury apart-hotel units and common areas. We have completed the structural work of the Four Season Apartments and are advancing our plans with the intention to monetize the units within the Four Season Apartments, subject to Macao government approval.

Sands Cotai Central

We have completed the structural work on the remainder of the fourth tower of Sands Cotai Central, an apart-hotel wing that consists of approximately 1.0 million square feet of St. Regis-serviced and -branded luxury apart-hotel units and common areas, with the intention of monetization of the units within the St. Regis tower, subject to Macao government approval. Upon completion of the integrated resort, Sands Cotai Central will consist of a 13.7 million-square-foot, 6,400-room complex featuring rooms, suites and apart-hotel units, approximately 800,000 square feet of retail, entertainment and dining space, over 550,000 square feet of meeting facilities and a multipurpose theater.

United States

We were constructing the Las Vegas Condo Tower, located on the Las Vegas Strip between The Palazzo and The Venetian Las Vegas. In 2008, we suspended our construction activities for the project due to reduced demand for Las Vegas Strip condominiums and the overall decline in general economic conditions. We continue to evaluate the highest return opportunity for the project and intend to recommence construction when demand and conditions improve. The impact of the suspension on the estimated overall cost of the project is currently not determinable with certainty. Should demand and conditions fail to improve or management decides to abandon the project, we could record a charge for some portion of the $123 million in capitalized construction costs as of December 31, 2016.

Other

We continue to pursue new development opportunities globally.

Liquidity and Capital Resources

Cash Flows — Summary

Our cash flows consisted of the following:

Year Ended December 31,
201620152014
(In millions)
Net cash generated from operating activities$4,043$3,450$4,833
Cash flows from investing activities:
Change in restricted cash and cash equivalents(2)(1)—
Capital expenditures(1,398)(1,529)(1,179)
Proceeds from disposal of property and equipment522
Acquisition of intangible assets(47)——
Net cash used in investing activities(1,442)(1,528)(1,177)
Cash flows from financing activities:
Proceeds from exercise of stock options171756
Excess tax benefits from stock-based compensation194
Repurchase of common stock—(205)(1,677)
Dividends paid(2,909)(2,693)(2,387)
Distributions to noncontrolling interests(15)(14)(10)
Proceeds from long-term debt2,2962,0892,498
Repayments of long-term debt(1,987)(2,398)(2,117)
Payments of deferred financing costs(33)(12)(88)
Net cash used in financing activities(2,630)(3,207)(3,721)
Effect of exchange rate on cash(22)(42)(29)
Decrease in cash and cash equivalents(51)(1,327)(94)
Cash and cash equivalents at beginning of year2,1793,5063,600
Cash and cash equivalents at end of year$2,128$2,179$3,506

Cash Flows — Operating Activities

Table games play at our properties is conducted on a cash and credit basis. Slot machine play is primarily conducted on a cash basis. The retail hotel rooms business is generally conducted on a cash basis, the group hotel rooms business is conducted on a cash and credit basis, and banquet business is conducted primarily on a credit basis resulting in operating cash flows being generally affected by changes in operating income and accounts receivable. For the year ended December 31, 2016, net cash generated from operating activities increased $593 million compared to the year ended December 31, 2015. The increase was primarily attributable to changes in our working capital accounts, consisting primarily of changes in accounts receivable and other accrued liabilities, partially offset by the decrease in net income. For the year ended December 31, 2015, net cash generated from operating activities decreased $1.38 billion compared to the year ended December 31, 2014. The decrease was primarily attributable to the decrease in operating cash flows generated from our Macao operations.

Cash Flows — Investing Activities

Capital expenditures for the year ended December 31, 2016, totaled $1.40 billion, including $1.19 billion for construction and development activities in Macao, which consisted primarily of $925 million for The Parisian Macao and $128 million for Sands Cotai Central; $92 million at our Las Vegas Operating Properties; $83 million in Singapore; and $38 million for corporate and other activities. Additionally, during the year ended December 31, 2016, we paid SGD 66 million (approximately $47 million at exchange rates in effect at the time of the transaction) to renew our Singapore gaming license for a three-year term.

Capital expenditures for the year ended December 31, 2015, totaled $1.53 billion, including $1.29 billion for construction and development activities in Macao, which consisted primarily of $767 million for The Parisian Macao and $403 million for Sands Cotai Central; $130 million in Singapore; $78 million at our Las Vegas Operating Properties; and $29 million for corporate and other activities.

Capital expenditures for the year ended December 31, 2014, totaled $1.18 billion, including $946 million for construction and development activities in Macao, which consisted primarily of $391 million for The Parisian Macao and $346 million for Sands Cotai Central; $109 million at our Las Vegas Operating Properties; $80 million in Singapore; and $44 million for corporate and other activities.

Cash Flows — Financing Activities

Net cash flows used in financing activities were $2.63 billion for the year ended December 31, 2016, which was primarily attributable to $2.91 billion in dividend payments, partially offset by net proceeds of $309 million from our various credit facilities.

Net cash flows used in financing activities were $3.21 billion for the year ended December 31, 2015, which was primarily attributable to $2.69 billion in dividend payments, a net repayment of $413 million on our 2013 U.S. Credit Facility and $205 million in common stock repurchases, partially offset by net proceeds of $179 million on our 2011 VML Credit Facility.

Net cash flows used in financing activities were $3.72 billion for the year ended December 31, 2014, which was primarily attributable to $2.39 billion in dividend payments and $1.68 billion in common stock repurchases, partially offset by net proceeds of $430 million from our 2013 U.S. Revolving Facility.

As of December 31, 2016, we had $3.46 billion available for borrowing under our U.S., Macao and Singapore credit facilities, net of letters of credit.

Capital Financing Overview

We fund our development projects primarily through borrowings from our credit facilities (see “Item 8 — Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements — Note 8 — Long-term Debt”) and operating cash flows.

Our U.S., Macao and Singapore credit facilities, as amended, contain various financial covenants. The U.S. credit facility requires our Las Vegas operations to comply with a financial covenant at the end of each quarter to the extent that any revolving loans or certain letters of credit are outstanding. This financial covenant requires our Las Vegas operations to maintain a maximum leverage ratio of net debt, as defined, to trailing twelve-month adjusted earnings before interest, income taxes, depreciation and amortization, as defined (“Adjusted EBITDA”). The maximum leverage ratio is 5.5x for all quarterly periods through maturity. We can elect to contribute cash on hand to our Las Vegas operations on a bi-quarterly basis; such contributions having the effect of increasing Adjusted EBITDA during the applicable quarter for purposes of calculating compliance with the maximum leverage ratio. Our Macao credit facility requires our Macao operations to comply with similar financial covenants, including maintaining a maximum leverage ratio of debt to Adjusted EBITDA. The maximum leverage ratio is 4.0x for the quarterly periods ending December 31, 2016 through June 30, 2017, and then decreases to, and remains at, 3.5x for all quarterly periods thereafter through maturity. Our Singapore credit facility requires our Marina Bay Sands operations to comply with similar financial covenants, including maintaining a maximum leverage ratio of debt to Adjusted EBITDA. The maximum leverage ratio is 3.5x for the quarterly periods ending December 31, 2016 through September 30, 2019, and then decreases to, and remains at, 3.0x for all quarterly periods thereafter through maturity. As of December 31, 2016, our U.S., Macao

and Singapore leverage ratios, as defined per the respective credit facility agreements, were 0.8x, 2.0x and 2.4x, respectively, compared to the maximum leverage ratios allowed of 5.5x, 4.0x and 3.5x, respectively. If we are unable to maintain compliance with the financial covenants under these credit facilities, we would be in default under the respective credit facilities. A default under the U.S. credit facility would trigger a cross-default under our airplane financings. Any defaults or cross-defaults under these agreements would allow the lenders, in each case, to exercise their rights and remedies as defined under their respective agreements. If the lenders were to exercise their rights to accelerate the due dates of the indebtedness outstanding, there can be no assurance that we would be able to repay or refinance any amounts that may become due and payable under such agreements, which could force us to restructure or alter our operations or debt obligations.

We held unrestricted cash and cash equivalents of approximately $2.13 billion and restricted cash and cash equivalents of approximately $10 million as of December 31, 2016, of which approximately $1.73 billion of the unrestricted amount is held by non-U.S. subsidiaries. Of the $1.73 billion, approximately $1.34 billion is available to be repatriated to the U.S. with minimal taxes owed on such amounts due to the significant foreign taxes we paid, which would ultimately generate U.S. foreign tax credits if cash is repatriated. The remaining unrestricted amounts are not available for repatriation primarily due to dividend requirements to third party public shareholders in the case of funds being repatriated from SCL. We believe the cash on hand and cash flow generated from operations, as well as the $3.46 billion available for borrowing under our U.S., Macao and Singapore credit facilities, net of outstanding letters of credit, as of December 31, 2016, will be sufficient to maintain compliance with the financial covenants of our credit facilities and fund our working capital needs, committed and planned capital expenditures, development opportunities, debt obligations and dividend commitments. In the normal course of our activities, we will continue to evaluate our capital structure and opportunities for enhancements thereof.

In June 2016, we entered into an agreement to amend our 2011 VML Credit Facility, which became effective in August 2016. This agreement extended the maturity of a portion of the term loans under the facility to May 2022 and provided for additional term loan commitments of $1.0 billion (see “Item 8 — Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements — Note 8 — Long-term Debt — 2016 VML Credit Facility”). In August and December 2016, we entered into agreements to amend our 2013 U.S. Credit Facility, which extended the maturity of a portion of the revolving credit commitments under the facility to September 2020 and to lower the applicable margin credit spread for borrowings under the term loans (see “Item 8 — Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements — Note 8 — Long-term Debt — 2013 U.S. Credit Facility”). During the year ended December 31, 2016, we had net borrowings of $999 million on our Macao credit facilities and made net repayments of $594 million on our 2013 Extended U.S. Revolving Facility.

During the year ended December 31, 2016, we paid a quarterly dividend of $0.72 per common share and recorded $2.29 billion as a distribution against retained earnings. During the year ended December 31, 2015, we paid a quarterly dividend of $0.65 per common share and recorded $2.07 billion as a distribution against retained earnings. During the year ended December 31, 2014, we paid a quarterly dividend of $0.50 per common share and recorded $1.61 billion as a distribution against retained earnings. In January 2017, our Board of Directors declared a quarterly dividend of $0.73 per common share (a total estimated to be approximately $580 million) to be paid on March 31, 2017, to shareholders of record on March 23, 2017. We expect this level of dividend to continue quarterly through the remainder of 2017. Our Board of Directors will continually assess the level and appropriateness of any cash dividends.

On February 26 and June 24, 2016, SCL paid a dividend of 0.99 Hong Kong dollars ("HKD") and HKD 1.00 per share, respectively, to SCL shareholders (a total of $2.07 billion, of which we retained $1.45 billion). On February 27 and July 15, 2015, SCL paid a dividend of HKD 0.99 and HKD 1.00 per share, respectively, to SCL shareholders (a total of $2.07 billion, of which we retained $1.45 billion). On February 26, 2014, SCL paid a dividend of HKD 0.87 per share and a special dividend of HKD 0.77 per share, and, on June 30, 2014, paid a dividend of HKD 0.86 per share to SCL shareholders (a total of $2.60 billion, of which we retained $1.82 billion). In January 2017, the Board of Directors of SCL declared a dividend of HKD 0.99 per share (a total of $1.03 billion, of which we retained $722 million) to SCL shareholders of record on February 8, 2017, which was paid on February 24, 2017.

In June 2013, our Board of Directors approved a stock repurchase program with an initial authorization of $2.0 billion, which expired in June 2015, but was substantially completed during the year ended December 31, 2014. In October 2014, our Board of Directors authorized the repurchase of an additional $2.0 billion of our outstanding common

stock, which expired in October 2016. In November 2016, our Board of Directors authorized the repurchase of $1.56 billion of our outstanding common stock, which expires in November 2018. Repurchases of our common stock are made at our discretion in accordance with applicable federal securities laws in the open market or otherwise. The timing and actual number of shares to be repurchased in the future will depend on a variety of factors, including our financial position, earnings, legal requirements, other investment opportunities and market conditions. During the year ended December 31, 2016, we repurchased no shares. During the years ended December 31, 2015 and 2014, we repurchased 4,383,793 and 22,406,655 shares, respectively, of our common stock for $205 million and $1.66 billion, respectively, (including commissions) under our previous programs. All share repurchases of our common stock have been recorded as treasury stock.

Aggregate Indebtedness and Other Known Contractual Obligations

Our total long-term indebtedness and other known contractual obligations are summarized below as of December 31, 2016:

Payments Due by Period(6)
Less than 1 Year1-3 Years3-5 YearsMore than 5 YearsTotal
(In millions)
Long-Term Debt Obligations(1)
2013 U.S. Credit Facility$23$45$2,151$—$2,219
2016 VML Credit Facility201581,9452,2654,388
2012 Singapore Credit Facility641,2571,719—3,040
Other60162—78
Fixed Interest Payments12——3
Variable Interest Payments(2)254487276211,038
Contractual Obligations
Macao Annual Premium(3)41828221226
Mall Deposits(4)3848275118
Operating Leases and Other(5)374335257372
Total$538$2,138$6,237$2,569$11,482
(1)See “Item 8 — Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements — Note 8 — Long-Term Debt” for further details on these financing transactions.
(2)Based on the 1-month rates as of December 31, 2016, London Inter-Bank Offered Rate (“LIBOR”) of 0.8%, Hong Kong Inter-Bank Offered Rate (“HIBOR”) of 0.7% and Singapore Swap Offer Rate (“SOR”) of 0.9% plus the applicable interest rate spread in accordance with the respective debt agreements.
(3)In addition to the 39% gross gaming win tax in Macao (which is not included in this table as the amount we pay is variable in nature), we are required to pay an annual premium with a fixed portion and a variable portion, which is based on the number and type of gaming tables and gaming machines we operate. Based on the gaming tables and gaming machines in operation as of December 31, 2016, the annual premium payable to the Macao government is approximately $41 million through the termination of the gaming subconcession in June 2022.
(4)Mall deposits consist of refundable security deposits received from mall tenants.
(5)We are party to certain operating leases for real estate, various equipment and service arrangements, which primarily include $133 million related to a 99-year lease agreement (87 years remaining) for a parking structure located adjacent to The Venetian Las Vegas, $104 million related to certain leaseback agreements related to the sales of The Grand Canal Shoppes and The Shoppes at the Palazzo, and $86 million related to long-term land leases of 25 years with automatic extensions at our option of 10 years thereafter in accordance with Macao law.
(6)As of December 31, 2016, we had a $16 million liability related to unrecognized tax benefits; we do not expect this liability to result in a payment of cash within the next 12 months. We are unable to reasonably estimate the timing of the liability in individual years beyond 12 months due to uncertainties in the timing of the effective settlement of tax positions; therefore, such amounts are not included in the table.

Off-Balance Sheet Arrangements

We have not entered into any transactions with special purpose entities, nor have we engaged in any derivative transactions other than interest rate caps and foreign currency forward contracts.

Restrictions on Distributions

We are a parent company with limited business operations. Our main asset is the stock and membership interests of our subsidiaries. The debt instruments of our U.S., Macao and Singapore subsidiaries contain certain restrictions that, among other things, limit the ability of certain subsidiaries to incur additional indebtedness, issue disqualified stock or equity interests, pay dividends or make other distributions, repurchase equity interests or certain indebtedness, create certain liens, enter into certain transactions with affiliates, enter into certain mergers or consolidations or sell our assets of our company without prior approval of the lenders or noteholders.

Special Note Regarding Forward-Looking Statements

This report contains forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the discussions of our business strategies and expectations concerning future operations, margins, profitability, liquidity and capital resources. In addition, in certain portions included in this report, the words: “anticipates,” “believes,” “estimates,” “seeks,” “expects,” “plans,” “intends” and similar expressions, as they relate to our company or management, are intended to identify forward-looking statements. Although we believe that these forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, among others, the risks associated with:

•general economic and business conditions in the U.S. and internationally, which may impact levels of disposable income, consumer spending, group meeting business, pricing of hotel rooms and retail and mall sales;
•the uncertainty of consumer behavior related to discretionary spending and vacationing at casino-resorts in Macao, Singapore, Las Vegas and Bethlehem, Pennsylvania;
•the extensive regulations to which we are subject to and the costs of compliance or failure to comply with such regulations;
•our leverage, debt service and debt covenant compliance, including the pledge of our assets (other than our equity interests in our subsidiaries) as security for our indebtedness and ability to refinance our debt obligations as they come due or to obtain sufficient funding for the remainder of our planned, or any future, development projects;
•fluctuations in currency exchange rates;
•increased competition for labor and materials due to other planned construction projects in Macao and quota limits on the hiring of foreign workers;
•our ability to obtain required visas and work permits for management and employees from outside countries to work in Macao, and our ability to compete for the managers and employees with the skills required to perform the services we offer at our properties;
•new developments, construction projects and ventures, including the completion of our Cotai Strip developments;
•regulatory policies in mainland China or other countries in which our customers reside, or where we have operations, including visa restrictions limiting the number of visits or the length of stay for visitors from mainland China to Macao, restrictions on foreign currency exchange or importation of currency, and the judicial enforcement of gaming debts;
•our dependence upon properties primarily in Macao, Singapore and Las Vegas for all of our cash flow;
•the passage of new legislation and receipt of governmental approvals for our proposed developments in Macao and other jurisdictions where we are planning to operate;
•our insurance coverage, including the risk that we have not obtained sufficient coverage, may not be able to obtain sufficient coverage in the future, or will only be able to obtain additional coverage at significantly increased rates;
•disruptions or reductions in travel, as well as disruptions in our operations, due to natural or man-made disasters, outbreaks of infectious diseases, terrorist activity or war;
•our ability to collect gaming receivables from our credit players;
•our relationship with gaming promoters in Macao;
•our dependence on chance and theoretical win rates;
•fraud and cheating;
•our ability to establish and protect our IP rights;
•conflicts of interest that arise because certain of our directors and officers are also directors of SCL;
•government regulation of the casino industry (as well as new laws and regulations and changes to existing laws and regulations), including gaming license regulation, the requirement for certain beneficial owners of our securities to be found suitable by gaming authorities, the legalization of gaming in other jurisdictions and regulation of gaming on the Internet;
•increased competition in Macao and Las Vegas, including recent and upcoming increases in hotel rooms, meeting and convention space, retail space, potential additional gaming licenses and online gaming;
•the popularity of Macao, Singapore and Las Vegas as convention and trade show destinations;
•new taxes, changes to existing tax rates or proposed changes in tax legislation;
•our ability to maintain our gaming licenses, certificate and subconcession in Macao, Singapore, Las Vegas and Bethlehem, Pennsylvania;
•the continued services of our key management and personnel;
•any potential conflict between the interests of our Principal Stockholder and us;
•the ability of our subsidiaries to make distribution payments to us;
•labor actions and other labor problems;
•our failure to maintain the integrity of our customer or company data, including against past or future cybersecurity attacks, and any litigation or disruption to our operations resulting from such loss of data integrity;
•the completion of infrastructure projects in Macao;
•our relationship with GGP or any successor owner of the Grand Canal Shoppes; and
•the outcome of any ongoing and future litigation.

All future written and verbal forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. Readers are cautioned not to place undue reliance on these forward-looking statements. We assume no obligation to update any forward-looking statements after the date of this report as a result of new information, future events or developments, except as required by federal securities laws.

Critical Accounting Policies and Estimates

The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information that is currently available to us and on various other assumptions that management believes to be reasonable under the circumstances. Actual results could vary from those estimates and we may change our estimates and assumptions in future evaluations. Changes in these estimates and assumptions may have a material effect on our results of operations and financial condition. We believe that the critical accounting policies discussed below affect our more significant judgments and estimates used in the preparation of our consolidated financial statements.

Allowance for Doubtful Casino Accounts

We maintain an allowance, or reserve, for doubtful casino accounts at our operating casino resorts in Macao, Singapore and the U.S., which we regularly evaluate. We specifically analyze the collectability of each account with a balance over a specified dollar amount, based upon the age of the account, the customer’s financial condition, collection history and any other known information, and we apply standard reserve percentages to aged account balances under the specified dollar amount. We also monitor regional and global economic conditions and forecasts in our evaluation of the adequacy of the recorded reserves. Credit or marker play was 16.4%, 28.6% and 59.6% of table games play at our Macao properties, Marina Bay Sands and Las Vegas Operating Properties, respectively, during the year ended December 31, 2016. Our table games play in Pennsylvania is primarily conducted on a cash basis. Our allowance for doubtful casino accounts was 47.7% and 36.4% of gross casino receivables as of December 31, 2016 and 2015, respectively. The credit extended to our junkets can be offset by the commissions payable to said junkets, which is considered in the establishment of the allowance for doubtful accounts. Our allowance for doubtful accounts from our hotel and other receivables is not material.

Litigation Accrual

We are subject to various claims and legal actions. We estimate the accruals for these claims and legal actions based on all relevant facts and circumstances currently available and include such accruals in other accrued liabilities in the consolidated balance sheets when it is determined that such contingencies are both probable and reasonably estimable.

Property and Equipment

At December 31, 2016, we had net property and equipment of $15.90 billion, representing 77.7% of our total assets. We depreciate property and equipment on a straight-line basis over their estimated useful lives. The estimated useful lives are based on the nature of the assets as well as current operating strategy and legal considerations, such as contractual life. Future events, such as property expansions, property developments, new competition, or new regulations, could result in a change in the manner in which we use certain assets requiring a change in the estimated useful lives of such assets.

For assets to be held and used (including projects under development), fixed assets are reviewed for impairment whenever indicators of impairment exist. If an indicator of impairment exists, we first group our assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (the “asset group”). Secondly, we estimate the undiscounted future cash flows that are directly associated with and expected to arise from the completion, use and eventual disposition of such asset group. We estimate the undiscounted cash flows over the remaining useful life of the primary asset within the asset group. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, then an impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model. If an asset is still under development, future cash flows include remaining construction costs.

To estimate the undiscounted cash flows of our asset groups, we consider all potential cash flows scenarios, which are probability weighted based on management’s estimates given current conditions. Determining the recoverability

of our asset groups is judgmental in nature and requires the use of significant estimates and assumptions, including estimated cash flows, probability weighting of potential scenarios, costs to complete construction for assets under development, growth rates and future market conditions, among others. Future changes to our estimates and assumptions based upon changes in macro-economic factors, regulatory environments, operating results or management’s intentions may result in future changes to the recoverability of our asset groups.

For assets to be held for sale, the fixed assets (the “disposal group”) are measured at the lower of their carrying amount or fair value less cost to sell. Losses are recognized for any initial or subsequent write-down to fair value less cost to sell, while gains are recognized for any subsequent increase in fair value less cost to sell, but not in excess of the cumulative loss previously recognized. Any gains or losses not previously recognized that result from the sale of the disposal group shall be recognized at the date of sale. Fixed assets are not depreciated while classified as held for sale.

Indefinite Useful Life Assets

As of December 31, 2016, we had a $50 million asset related to our Sands Bethlehem gaming license and a $17 million asset related to our Sands Bethlehem table games certificate, both of which were determined to have indefinite useful lives. Assets with indefinite useful lives are assessed regularly to ensure they continue to meet the indefinite useful life criteria. These assets are not subject to amortization and are tested for impairment and recoverability annually or more frequently if events or circumstances indicate that the assets might be impaired. When performing our impairment analysis, we may first conduct a qualitative assessment to determine whether we believe it is “more-likely-than-not” that the asset is impaired. If we elect to perform a qualitative assessment and we determine it is “more-likely-than-not” that the asset is impaired after assessing the qualitative factors, we then perform an impairment test that consists of a comparison of the fair value of the asset with its carrying amount. If the fair value of the asset exceeds the carrying amount, no impairment is recognized. If the fair value of the asset does not exceed the carrying amount, an impairment will be recognized in an amount equal to the difference.

If we determine a qualitative assessment is to be performed, we assess certain qualitative factors including, but not limited to, the results of the most recent fair value calculation, operating results and projected operating results, and macro-economic and industry conditions.

Future changes to our estimates and assumptions based upon changes in operating results, macro-economic factors or management’s intentions may result in future changes to the fair value of the gaming license and table games certificate.

Stock-Based Compensation

Accounting standards regarding share-based payments require the recognition of compensation expense in the consolidated statements of operations related to the fair value of employee stock-based compensation. Determining the fair value of stock-based awards at the grant date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility and the expected dividends. Expected volatilities are based on our historical volatility. The expected option life is based on the contractual term of the option as well historical exercise and forfeiture behavior. The expected dividend yield is based on our estimate of annual dividends expected to be paid at the time of the grant. We believe that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair values of our stock options granted. Judgment is also required in estimating the amount of stock-based awards expected to be forfeited prior to vesting. If actual forfeitures differ significantly from these estimates, stock-based compensation expense could be materially impacted. All employee stock options were granted with an exercise price equal to the fair market value (as defined in the Company’s equity award plans).

During the years ended December 31, 2016 and 2015, we recorded stock-based compensation expense of $35 million and $46 million, respectively. As of December 31, 2016, under the LVSC 2004 Plan there was $33 million of unrecognized compensation cost, net of estimated forfeitures of 8.0% per year, related to unvested stock options and there was $1 million of unrecognized compensation cost, net of estimated forfeitures of 8.0% per year, related to unvested restricted stock and stock units. The stock option and restricted stock and stock unit costs are expected to be recognized over a weighted average period of 3.1 years and 0.8 years, respectively.

As of December 31, 2016, under the SCL Equity Plan there was $15 million of unrecognized compensation cost, net of estimated forfeitures of 11.3% per year, related to unvested stock options and there was $2 million of unrecognized compensation cost related to unvested restricted stock units. The stock option and restricted stock unit costs are expected to be recognized over a weighted average period of 2.9 years and 1.0 years, respectively.

Income Taxes

We are subject to income taxes in the U.S. (including federal and state) and numerous foreign jurisdictions in which we operate. We record income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and attributable to operating loss and tax credit carryforwards. Accounting standards regarding income taxes require a reduction of the carrying amounts of deferred tax assets by a valuation allowance, if based on the available evidence, it is “more-likely-than-not” that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed at each reporting period based on a “more-likely-than-not” realization threshold. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, our experience with operating loss and tax credit carryforwards not expiring, and implementation of tax planning strategies.

We recorded a valuation allowance on the net deferred tax assets of certain foreign jurisdictions of $234 million and $196 million, as of December 31, 2016 and 2015, respectively, and a valuation allowance on certain net deferred tax assets of our U.S. operations of $3.96 billion and $3.11 billion as of December 31, 2016 and 2015, respectively. Management will reassess the realization of deferred tax assets based on the applicable accounting standards for income taxes each reporting period and consider the scheduled reversal of deferred tax liabilities, sources of taxable income and tax planning strategies. To the extent that the financial results of these operations improve and it becomes “more-likely-than-not” that the deferred tax assets are realizable, we will be able to reduce the valuation allowance in the period such determination is made as appropriate.

Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. During the ordinary course of business, there are many transactions for which the tax treatment is uncertain. Accounting standards regarding uncertainty in income taxes provides a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is “more-likely-than-not” that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely, based solely on the technical merits, of being sustained on examinations. We recorded unrecognized tax benefits of $74 million and $65 million as of December 31, 2016 and 2015, respectively. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and for which actual outcomes may be different.

Our major tax jurisdictions are the U.S., Macao, and Singapore. We are subject to examination for years beginning 2010 in the U.S. and for years beginning 2012 in Macao and Singapore. In November 2016, the Inland Revenue Authority of Singapore completed a compliance review of the Marina Bay Sands tax returns for tax years 2010 through 2012.

Recent Accounting Pronouncements

See related disclosure at “Item 8 — Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements — Note 2 — Summary of Significant Accounting Policies.”

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